As a result of the reduction in deposits and increase in loans, the investment securities portfolio decreased to $6.60 billion at September 30, 2012, compared to $7.07 billion at June 30, 2012, and $6.97 billion at September 30, 2011.
During the third quarter of 2012, the Company repurchased 312.9 thousand shares of common stock at a total cost of $14.5 million under its share repurchase program. The average cost was $46.62 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through September 30, 2012, the Company has repurchased 49.9 million shares and returned over $1.8 billion to shareholders at an average cost of $36.28 per share. From October 1 through October 19, 2012, the Company repurchased an additional 87.5 thousand shares of common stock at an average cost of $44.83 per share repurchased. Remaining buyback authority under the share repurchase program was $80.5 million at October 19, 2012.
Total shareholders’ equity was $1.02 billion at September 30, 2012, up from $1.00 billion at June 30, 2012 and relatively unchanged from September 30, 2011. The ratio of tangible common equity to risk-weighted assets was 17.43 percent at September 30, 2012, compared to 17.57 percent at June 30, 2012 and 18.90 percent at September 30, 2011. The Tier 1 leverage ratio at September 30, 2012 was 6.78 percent, up from 6.57 percent at June 30, 2012 and down from 6.95 percent at September 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 December 14, 2012 to shareholders of record at the close of business on November 30, 2012.Hawaii Economy Hawaii’s economy continued to improve during the third quarter of 2012 primarily due to increasing visitor arrivals and spending. For the first eight months of 2012, total visitor arrivals increased 10.0 percent and visitor spending increased by 20.0 percent compared to the same period in 2011. The most significant growth continues to come from international markets. During 2012, hotel occupancy and revenue per available room also continued to improve. The statewide seasonally adjusted unemployment rate declined to 5.7% in September 2012, compared to 7.8% nationally. The median sales price for single-family homes and condominiums as well as closed sales on Oahu have increased through August 2012 compared to the prior year.