Bank of Hawaii expanded lending for residential mortgages and commercial real estate, boosting its third-quarter profit.
Net income at the $16 billion-asset Honolulu company rose 27% to $43 million from the same time a year ago. Earnings per share rose 29% to $1.02.
Net interest income after the loan-loss provision increased 3.5% to $101 million. Bank of Hawaii recorded a $2.5 million provision after not posting a provision a year ago. The net interest margin widened three basis points to 2.8%.
Total loans and leases rose 13% to $8.7 billion on higher levels of commercial real estate and commercial and industrial loans, and increased residential mortgages and home equity lines.
Noninterest income rose 11% to $48 million. Mortgage banking nearly doubled to $6.4 million on higher loan production.
Noninterest expense fell 5% to $88 million. A year ago, Bank of Hawaii recorded a $9.5 million impairment charge on aircraft where the leases had expired; the favorable comparison helped offset higher salaries and employee-benefit costs in the current quarter.