Bank of Hawaii Corp. in Honolulu said first quarter net income fell 37% from a year earlier, to $36 million, or 75 cents a share. Analysts had expected the $11.5 billion-asset company to earn 74 cents a share, though its first-quarter earnings also reflected a one-time $10 million gain related to the sale of the company's equity interest in certain leases on watercraft.
Bank of Hawaii's provision rose 73% from a year earlier, to $24.9 million. Its nonperforming assets rose more than sixfold from a year earlier, to $40.3 million, but still represented just 0.35% of total assets.
"The recession is affecting us out here in Hawaii and our earnings are down, but we've been focused on soundness," Allan R. Landon, chairman and chief executive, said in an interview Monday. "Our liquidity is up with deposit growth, we've strengthened our reserves and added capital."
Deposits rose 13.7% from a year earlier, to $9.2 billion. Bank of Hawaii's Tier 1, total risk-based and tangible common equity capital ratios rose from the fourth quarter, to 12.02%, 13.28% and 12.47%, respectively.