Bank of Hawaii profits up 1.8 percent in 3rd quarter | The Honolulu Advertiser

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Bank of Hawaii profits up 1.8 percent in 3rd quarter | The Honolulu Advertiser | Hawaii's Newspaper

Posted on: Tuesday, October 23, 2007

Bank of Hawaii profits up 1.8 percent in 3rd quarter

Advertiser Staff

Despite a tough interest-rate environment, Bank of Hawaii Corp. said profits rose 1.8 percent to $47.8 million in the third quarter from the same period a year earlier thanks to a rise in noninterest income, which includes charges and fees.

THIRD QUARTER

Net income: $47.8 million, up 1.8 percent from a year ago.

Earnings per share: 96 cents, up 4.3 percent from year ago.

2007 income: $142.8 million, up 10.3 percent from year ago.

2007 earnings per share: $2.86, up 13.5 percent from year ago.

Total assets: $10.6 billion, up 1.7 percent from a year ago.

REASONS

The low-interest-rate environment weighed down the bank's performance as net interest income slipped 1.6 percent.

That was offset by noninterest income, which jumped 5.5 percent to $61.2 million.

The bank's provision for credit losses rose 46.4 percent to $4.1 million.

The bank's asset quality continued to improved as nonperforming assets fell 22 percent to $4.3 million.

WHAT THEY ARE SAYING

"The third quarter of 2007 reflects another quarter of solid financial performance for Bank of Hawaii Corporation. ... Bank of Hawaii remains well positioned to deliver superior results, even as growth becomes more challenging."

Allan Landon
Bank of Hawaii Corp. CEO

WHAT'S NEXT

Analysts expect the bank to earn about $3.79 per share this year while the company's stock is expected to trade between $54 and $58.

The bank authorized another $100 million in stock repurchases. Earnings per share could get a lift.

The company's board of directors declared an increase in the company's quarterly dividend to 44 cents per share. The dividend is payable on Dec. 14 for shareholders of record on Nov. 30.

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