Bank of Hawaii in Honolulu reported slightly lower second-quarter profits as expanded lending and mortgage banking was offset by higher payroll costs and other expenses.
The $15.3 billion-asset company's net income fell 0.8% to $41.2 million, or 95 cents per share, from a year earlier, beating by three cents the average estimate of analysts polled by Bloomberg.
Net interest income increased 3.6% to $97.8 million. Total loans and leases rose 16% to $7.4 billion. The net interest margin tightened five basis points to 2.81%.
Noninterest income rose 3.2% to $45.9 million on higher mortgage banking revenue, which rose 94% to $3.5 million.
Noninterest expense rose 3.1% to $83.6 million. The cost of salaries and employee benefits rose 5.6% to $47.6 million. The efficiency ratio improved to 58.16%.