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The Honolulu Advertiser
Posted on: Tuesday, January 24, 2006

Bank of Hawaii Corp.'s outlook for 2006 remains rosy

Advertiser Staff

Bank of Hawaii Corp. continued to benefit from the state's growing economy as its per-share earnings were up 4.9 percent during the fourth quarter.


Net income: $44.8 million, down 3.2 percent from year ago.

Earnings per share: 86 cents, up 4.9 percent.

Net interest income: $103.5 million, up 3.5 percent.

Fiscal 2005 net income: $181.6 million, up 4.7 percent.

Fiscal 2005 earnings per share: $3.41, up 10.7 percent.

Total assets $10.2 billion, up 4.3 percent.


  • The bank's net interest income, deposits and loans all showed modest growth.

  • The bank's loan quality continued to improve as its nonperforming assets fell 53.3 percent to $6.5 million.

  • The latest quarterly results compare with fourth quarter 2004 when the bank's income were boosted by a one-time $6.5 million gain from the release of reserves for loan and lease losses.


    "The Hawai'i economy remains solid and we are on track to surpass the goals of our 2004-2006 plan.

    Allan Landon
    CEO, Bank of Hawaii

    "This strong deposit growth reflects the strength in the service-oriented economy."

    Michael McMahon
    Analyst, Sandler O'Neill & Partners


    The bank expects its 2006 net income to increase about $187 million from 2005's $181.6 million.

    The bank authorized another $100 million in stock repurchases.

    Analysts expect Bank of Hawaii's stock to trade between $55 per share and $56 per share this year, which is up slightly from the current $54 per share.