Bank of Hawaii Corp. in Honolulu posted third-quarter earnings of 92 cents a share, nine cents more than the average expectation of analysts.
The $13.3 billion-asset company made $43.3 million during the period, up about 23% from the second quarter but down about 2% from a year earlier. In the second quarter, the company paid $9 million to settle a class-action suit involving overdraft fees on debit cards.
Third-quarter earnings were helped by an 84% year-over-year drop in the provision for credit losses, to $2.2 million and an almost 72% decline in net chargeoffs to $3.8 million. Total nonperforming assets increased to $37.8 million, mainly due to the addition of one commercial loan.
Net interest income for the quarter was down about 2% from a year earlier to $97.1 million. Net interest margin was 3.09% for the third quarter, a decrease of 7 basis points from the second quarter and an 18 basis point drop from the same period last year.
At midday, Bank of Hawaii shares were up almost 3% to $41.54.