First Hawaiian Bank Reports Solid Half, Flat Quarter

By Sonia Isotov

Today, Don Horner, First Hawaiian Bank chairman and chief executive officer, reported that net income for the first half 2011 was  $107.1 million, up a modest 1% over the first half of 2010. 

He also reported second quarter net income of $54.5 million which was equal to the comparable quarter of 2010. Total deposits grew 11.6 percent to a record $11.7 billion. 

“Overall, the bank continued to perform well, with consistent core earnings and strong asset quality,” Horner said.  “First Hawaiian remains committed and well positioned to support our customers especially during these challenged economic times.  We remain in a sluggish, jobless recovery in part because of the weakness in our construction sector.  However, both the tourism and retail sectors are producing positive trends which reflect improvement in consumer confidence.” Said Horner, in a company statement today.

For the six months ending June 30, 2011, First Hawaiian Bank also achieved the following over the prior year: deposits increased 11.6% or $11.7 billion; total assets increased 0.3% or $14.8 billion; loans and leases increased 2.2% or $8.2 billion; and capital or net worth was reported to be well above other Hawaii banks, and in the top quartile nationally as a percentage of total assets. As for non-performing assets, asset quality remained strong with non performing assets at 0.2% of total assets.

In other developments during the first half of 2011, First Hawaiian became the first bank on Guam to offer personal trust services with the formation of a new trust company, FHB Guam Trust Co.  The new operation is located in Tamuning, Guam and provides a full range of personal trust services, asset management, and estate plan administration.

In April, First Hawaiian was the first Hawaii bank to accept the BC Global Card, which is part of the largest domestic payments network in Korea.  First Hawaiian now accepts the card through its network of 7,500 merchant locations and nearly 300 ATMs in Hawaii. 

Other significant developments, saw First Hawaiian Bank continue its community leadership by becoming a core sponsor The Aloha Initiative, the effort to match victims of the March 11th devastation in Japan with host families in Hawaii.