Bank of Hawaii in Honolulu reported that second-quarter profit rose on growth in commercial and consumer loans, and from higher returns on securities investments.

The $14.8 billion-asset company said Monday that net income rose 9.9% to $41.5 million, or 94 cents per share, from a year earlier. That was a nickel better than the average estimate of analysts polled by Bloomberg.

Net interest income, after the provision, rose 10.6%, to $96.6 million. Consumer loans climbed 7.8%, to $3.7 billion, while commercial loans increased 12.1%, to $2.69 billion. Income on investment securities held to maturity rose 40.4%, to $26.9 million.

Total loans grew 5.4%, to $6.4 billion, and the net interest margin improved nine basis points to 2.86%.

Noninterest income fell 7.3%, to $44.5 million, as mortgage banking declined 69% from a year earlier. Both service charges on deposit accounts and insurance revenue also slipped from a year earlier.

The noninterest income category included a $2 million gain from Bank of Hawaii's sale of 23,500 class B shares of Visa. The company owned 452,914 Visa class B shares as of June 30.

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