BOH reports net income of $43.8M in Q1

HONOLULU, HI-Bank of Hawaii Corporation (NYSE: BOH) yesterday reported diluted earnings per share of $0.95 for the first quarter of 2012, up from $0.85 in the previous quarter, and up from $0.88 in the same quarter last year.

Net income for the first quarter of 2012 was $43.8 million, an increase of $4.6 million or 11.7 percent compared to net income of $39.2 million in the fourth quarter of 2011, and up $1.5 million or 3.4 percent from net income of $42.4 million in the first quarter of 2011.

Loan and lease balances increased to $5.6 billion during the first quarter of 2012, up 1.1 percent compared to the end of the fourth quarter of 2011 and up 5.1 percent compared to the end of the same quarter last year. Deposit growth continued to remain strong, increasing to $10.6 billion at March 31, 2012. The allowance for loan and lease losses declined to $135.6 million and currently represents 2.42 percent of outstanding loans and leases.

“Bank of Hawaii Corporation had a good start in 2012 with solid performance in the first quarter,” said Peter S. Ho, chairman, president, and CEO. “Loan balances continued to grow, deposits remained strong, and our net interest margin slightly improved during the quarter. We maintained our disciplined expense control management and credit costs are continuing to decline as the Hawaii economy recovers.”

The return on average assets for the first quarter of 2012 was 1.29 percent, up from 1.17 percent in the previous quarter, and down from 1.32 percent for the same quarter last year. The return on average equity for the first quarter of 2012 was 17.26 percent compared to 15.23 percent for the fourth quarter of 2011 and 16.86 percent in the first quarter of 2011. The efficiency ratio for the first quarter of 2012 was 58.35 percent, an improvement from 60.42 percent in the previous quarter.

Net interest income, on a taxable equivalent basis, for the first quarter of 2012 was $100.0 million, up $2.8 million from net interest income of $97.2 million in the fourth quarter of 2011 and essentially flat with net interest income of $100.1 million in the first quarter of 2011. Analyses of the changes in net interest income are included in Tables 8a and 8b.

The net interest margin was 3.06 percent for the first quarter of 2012, a 2 basis point increase from the net interest margin of 3.04 percent in the fourth quarter of 2011 and an 18 basis point decrease from 3.24 percent in the first quarter of 2011. The increase in the net interest margin compared to the fourth quarter is largely due to an improving balance sheet mix. The decrease in the net interest margin compared to the first quarter of 2011 was primarily due to higher levels of liquidity and lower yields on loans and investment securities.

Results for the first quarter of 2012 included a provision for credit losses of $0.4 million, or $3.0 million less than net charge-offs. The provision for credit losses during the fourth quarter of 2011 was $2.2 million, or $4.8 million less than net charge-offs. The provision for credit losses of $4.7 million equaled net charge-offs during the first quarter of 2011.

Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers and governments in Hawaii, American Samoa and the West Pacific. The Company’s principal subsidiary, Bank of Hawaii, was founded in 1897 and is the largest independent financial institution in Hawaii. For more information about Bank of Hawaii Corporation, see the Company’s web site, www.boh.com. (BOH)