Bank of Hawaii Corp. (BOH) in Honolulu reported a dip in quarterly earnings as revenue from mortgage banking plunged 65%.
The $14 billion-asset Bank of Hawaii earned $37.7 million in the third quarter, an 8% decrease from the same period a year ago. Earnings per share of 85 cents were 1 cent higher than the estimates of analysts polled by Bloomberg.
Bank of Hawaii's noninterest income dipped 14%, to $45.1 million, due largely to the decline in revenue from mortgage lending. Net interest income on a tax equivalent basis fell 3%, to $93.5 million, on waning income from loans and leases and securities available for sale. The company's net interest margin dropped 15 basis points to 2.83%.
Noninterest expense fell 2%, to $83 million. Bank of Hawaii lowered costs from salaries and benefits, occupancy and professional fees.
Net chargeoffs rose 55%, to $2.3 million, as recoveries declined by roughly a third. Bank of Hawaii did not take a loan-loss provision in the third quarter or during the same period a year ago.