No Luau for Bank of Hawaii's Earnings

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On Jan. 26, 2009, Bank of Hawaii (BOH Quote), reported a 3.8% decline in its Q4 FY08 earnings, due to higher provision for credit losses and lower noninterest income. Net income decreased to $39.31 million or $0.82 per share from $40.86 million or $0.83 per share in Q4 FY07. The latest quarterly earnings missed the consensus estimate of $0.87 per share.

Total interest income declined 10.6% to $134.19 million from $150.18 million a year ago, due to lower interest and fees on loans and lease income. However, due to lower interest expenses, net interest income increased 6.4% to $105.85 million. Total interest expenses declined 44.1% to $28.33 million from $50.73 million. Consequently, the company's net interest margin improved 31 basis points to 4.43%, and interest rate spread expanded 63 basis points to 4.11%. ...