Bank of Hawaii in Honolulu said Monday that its fourth-quarter profit rose 3.98% to $42.8 million from a year earlier as loan growth offset lower fee income.

The $15.5 billion-asset company's earnings per share of 99 cents beat the average estimate of analysts polled by Bloomberg by 6 cents.

Net interest income rose 5.2% to $101.6 million, total loans rose 14.5% to $7.9 billion and the net interest margin rose 1 basis point to 2.85%. Commercial and industrial, commercial mortgage, residential mortgage and home equity lending all increased.

Noninterest income fell 2.3% to $44.8 million on lower revenue from trust and asset management and service charges. Bank of Hawaii also recorded a $181,000 loss on investment securities, versus a gain of nearly $2 million in the year-earlier period.

Noninterest expenses rose 5.5% to $85.7 million and the company's efficiency ratio worsened by 152 basis points to 58.55%.

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