Total shareholders’ equity was $1.0 billion at June 30, 2012, up from total shareholders’ equity of $995.9 million at March 31, 2012 and essentially flat with shareholders’ equity of $1.0 billion at June 30, 2011. The ratio of tangible common equity to risk-weighted assets was 17.57 percent at the end of the second quarter of 2012, compared with 17.62 percent at the end of the first quarter of 2012, and 18.95 percent at the end of the same quarter last year. The Tier 1 leverage ratio at June 30, 2012 was 6.57 percent, unchanged from March 31, 2012, and down from 7.07 percent at June 30, 2011.
The Company’s Board of Directors declared a quarterly cash dividend of $0.45 per share on the Company’s outstanding shares. The dividend will be payable on September 17, 2012 to shareholders of record at the close of business on August 31, 2012.
Hawaii’s economy was stable during the second quarter with continued improvement in tourism, the State’s largest industry. For the first five months of 2012, total visitor arrivals increased by 10.0% and visitor spending increased by 16.8% compared to the same period in 2011. The increase in visitor spending was primarily due to strong growth from international visitors. Hotel occupancy and revenue per available room also continued to improve. Statewide seasonally adjusted unemployment was 6.4% in June 2012, compared to 8.2% nationally. For the first six months of 2012, the volume of single-family home sales on Oahu was relatively unchanged from the same period in 2011, while the median price of single-family homes sold was 8.7% higher compared to the same period in 2011. Single-family home inventory on Oahu continued to shrink and was at approximately four months as of June 30, 2012. More information on current Hawaii economic trends is presented in Table 15.