BoH posts $181.6M net income in 2005

HONOLULU—Bank of Hawaii Corp. reported yesterday diluted earnings per share for 2005 of $3.41, up $0.33 or 10.7 percent from diluted earnings per share of $3.08 in 2004. Net income for the year was $181.6 million, up $8.2 million or 4.7 percent from $173.3 million in the previous year. The return on average assets in 2005 was 1.81 percent, up from 1.78 percent in 2004. The return on average equity for the year was 24.83 percent, up from 22.78 percent in 2004.

“We are pleased with our financial performance in 2005 and the continued momentum of our bank,” said Allan R. Landon, chairman and CEO. “These results would not have been possible without the strong customer focus and dedication of our exceptional employees. The Hawaii economy remains solid and we are on track to surpass the goals of our 2004-2006 plan.”

Total assets were $10.19 billion at Dec. 31, 2005, up $421 million from $9.77 billion at Dec. 31, 2004 and up $102 million from $10.09 billion at Sept. 30, 2005. Total loans and leases were $6.17 billion at Dec. 31, 2005, up $182 million from $5.99 billion at Dec. 31, 2004 and down $34 million from $6.20 billion at Sept. 30, 2005.

Total commercial loans were $2.10 billion at Dec. 31, 2005, down $11 million compared to $2.11 billion at Dec. 31, 2004 and down $87 million from $2.19 billion at Sept. 30, 2005. Total consumer loans were $4.07 billion at Dec. 31, 2005, up $192 million compared to $3.88 billion at Dec. 31, 2004 and up $53 million compared to $4.01 billion at Sept. 30, 2005.

Total deposits at Dec. 31, 2005 were $7.91 billion, up $343 million from total deposits of $7.56 billion at Dec. 31, 2004 and up $151 million from total deposits of $7.76 billion at Sept. 30, 2005. Non-interest bearing demand deposits were $2.13 billion at Dec. 31, 2005, up $157 million compared to $1.98 billion at Dec. 31, 2004 and up $244 million compared to $1.89 billion at Sept. 30, 2005.

The company’s capital and liquidity remain strong. At Dec. 31, 2005 the Tier 1 leverage ratio was 7.14 percent compared to 6.98 percent at Sept. 30, 2005 and 8.29 percent at Dec. 31, 2004.

The company’s board has declared a quarterly cash dividend of $0.37 per share on the Company’s outstanding shares. The dividend will be payable on March 14, 2006 to shareholders of record at the close of business on Feb. 28, 2006.

Non-performing assets declined to $6.5 million at Dec. 31, 2005, a decrease of $7.4 million, or 53.3 percent, compared to non-performing assets of $13.9 million at Dec. 31, 2004 and a decrease of $1.8 million, or 21.5 percent, compared to $8.3 million at Sept. 30, 2005.

Bank of Hawaii currently estimates that its net income for 2006 will be approximately $187 million, which exceeds its previous guidance by $9 million. (Business Wire)