Bank of Hawaii (BOH) in Honolulu reported a slide in quarterly earnings as lending income fell.
The $13.7 billion-asset company reported Monday that it earned $37.8 million in the second quarter, down 7% from the same period in 2012. But earnings per share of 85 cents were 2 cents above the average estimates of analysts polled by Bloomberg.
Net interest income fell 8%, to $89.8 million, as net interest margin decreased by 21 basis points, to 2.77%. Total earning assets slipped to $12.9 billion, 2% lower.
Noninterest income rose 3%, to $48 million, on higher revenue from service charges on deposit accounts and asset management fees. Mortgage banking revenue dropped 23%, to $5.8 million.
Bank of Hawaii made no provision for credit losses, after recording a $628,000 provision in the second quarter of 2012, while net chargeoffs were 24% higher, at $4.7 million.