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Bank of Hawaii Corp.'s outlook for 2006 remains rosy | The Honolulu Advertiser | Hawaii's Newspaper
Posted on: Tuesday, January 24, 2006

Bank of Hawaii Corp.'s outlook for 2006 remains rosy

Advertiser Staff

Bank of Hawaii Corp. continued to benefit from the state's growing economy as its per-share earnings were up 4.9 percent during the fourth quarter.

THE NUMBERS

Net income: $44.8 million, down 3.2 percent from year ago.

Earnings per share: 86 cents, up 4.9 percent.

Net interest income: $103.5 million, up 3.5 percent.

Fiscal 2005 net income: $181.6 million, up 4.7 percent.

Fiscal 2005 earnings per share: $3.41, up 10.7 percent.

Total assets $10.2 billion, up 4.3 percent.

REASONS

  • The bank's net interest income, deposits and loans all showed modest growth.

  • The bank's loan quality continued to improve as its nonperforming assets fell 53.3 percent to $6.5 million.

  • The latest quarterly results compare with fourth quarter 2004 when the bank's income were boosted by a one-time $6.5 million gain from the release of reserves for loan and lease losses.

    WHAT THEY ARE SAYING

    "The Hawai'i economy remains solid and we are on track to surpass the goals of our 2004-2006 plan.

    Allan Landon
    CEO, Bank of Hawaii

    "This strong deposit growth reflects the strength in the service-oriented economy."

    Michael McMahon
    Analyst, Sandler O'Neill & Partners

    WHAT'S NEXT

    The bank expects its 2006 net income to increase about $187 million from 2005's $181.6 million.

    The bank authorized another $100 million in stock repurchases.

    Analysts expect Bank of Hawaii's stock to trade between $55 per share and $56 per share this year, which is up slightly from the current $54 per share.
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