Bank of Hawaii Corp.'s board selected President Peter S. Ho as its new chairman and chief executive as the company reported second-quarter profit rose 50%, beating analysts' expectations, as loan-loss provisions declined.
Ho will succeed Allan R. Landon who is set to retire at month's end. The 62-year-old announced his retirement plan in April. He was named to his current posts in September 2004 after previously being chief financial officer and chief operating officer since joining the bank in 2000.
Ho, 45, was hired by the bank in 1993 and became chief banking officer in 2006 and president in 2008. He will keep his role as president.
Meanwhile, Landon said Monday the Hawaii economy continues to show signs of gradual improvement and the bank plans to resume its share-buyback program in the current quarter. A host of companies have taken that step or launched new or expanding repurchase efforts as the perceived need to hoard cash eases.
Bank of Hawaii reported a second-quarter profit of $46.6 million, or 96 cents a share, up from $31 million, or 65 cents a share, a year earlier. The latest period included a net $16.2 million in securities gains, while the prior year included net asset-sale gains of $3.7 million.
Revenue increased 6.2% to $172.8 million.
Analysts polled by Thomson Reuters most recently forecast earnings of 74 cents a share on revenue of $156.4 million.
Provisions for credit losses fell to $15.9 million from $28.7 million a year earlier and $20.7 million in the first quarter. Net charge-offs, or loans the bank doesn't expect to collect, dropped to 1.09% from 1.65% and 1.28% respectively.
Shares closed Friday at $50.83 and were inactive premarket. The stock is up 43% the past year.