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The Honolulu Advertiser
Posted on: Tuesday, January 26, 2010

Bankoh's 4th quarter earnings rise 3.1%

BY Rick Daysog
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Allan Landon, chairman and CEO of Bank of Hawaii Corp., says the bank is "well-positioned to meet the needs of our marketplace."

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Bank of Hawaii Corp. reported a 3.1 percent increase in its fourth-quarter 2009 earnings, thanks to a $25.7 million gain from the sale of investment securities.

The company said yesterday that it netted $40.5 million, or 84 cents per share, during the three months ending Dec. 31, compared to the year-earlier's $39.3 million, or 82 cents per share.

Shares of Bank of Hawaii slipped $2.93, or nearly 6 percent, to close at $49.15 on the New York Stock Exchange yesterday.

"Bank of Hawaii Corp. finished 2009 with solid financial performance," said Allan Landon, chairman and CEO.

"Bank of Hawaii is well-positioned to meet the needs of our marketplace."

For the year, the company said, it earned $144 million, or $3 per share, compared to $192.2 million, or $3.99 per share, in 2008.

Total assets increased 15.3 percent to $12.41 billion, while deposits were up 13.5 percent to $9.41 billion.

Loans and leases fell 11.9 percent to $5.76 billion, reflecting the slow economy.

The company said net interest income was down 2.2 percent to $103.8 million.

But noninterest income soared 48 percent to $80.8 million.

The higher noninterest income was due largely to a $25.7 million gain from the sale of mortgage-backed securities that the company realized during the quarter.

During the year, the bank said, it increased its allowances for loan and lease losses by 16.4 percent to $143.7 million.

Founded in 1897, Bank of Hawaii is the state's second- largest financial institution.