Bank of Hawaii Corp. in Honolulu reported that its earnings fell nearly 25% from a year earlier, to $35.1 million, as it paid out $9 million to settle a class-action lawsuit involving overdraft fees on debit cards.
Net interest income fell 6% from a year earlier, to $97.5 million, due to lower interest rates on loans. The net interest margin shrank 8 basis points from the first quarter and 35 basis points from a year earlier, to 3.16%. The $13.2 billion-asset company's loan-loss provision fell 78% from a year earlier, to $3.6 million.
On July 15, Bank of Hawaii said in a filing with the Securities and Exchange Commission that it had settled a lawsuit that was filed in February. The litigation stemmed from claims that the company had improperly charged overdraft fees on debit card transactions. The settlement releases the claims.