Bank of Hawaii (BOH) in Honolulu missed its first-quarter earnings estimates as interest income fell.
The $13.5 billion-asset company reported Monday that its earnings fell 18% from a year earlier, to $36 million, or 81 cents a share. The results were 5 cents below the estimates of analysts polled by Bloomberg.
Net interest income fell 10% from a year earlier, to $88.6 million, because of low interest rates, the company said. Income from securities held-to-maturity declined 25% from a year earlier, to $19.8 million. The net interest margin contracted by 24 basis points from the first quarter of 2012, to 2.82%.
Noninterest income fell less than 1% from a year earlier, to $47.8 million. Income from trust and asset management and mortgage banking rose slightly, while fees and service charges dipped.
Bank of Hawaii's asset quality improved. It had no loan-loss provision during the first quarter. Net chargeoffs fell 41% from a year earlier, to $2 million. Nonperforming assets fell 7% from the first quarter of 2012, to $38.4 million.
