American Savings Bank Sees Continued Growth
American Savings Bank Kahului branch on Puunene Avenue. Photo by Wendy Osher.
By Sonia Isotov
American Savings Bank reported their net income this week for the first quarter of 2012 at $15.9 million, compared to $15.3 million in the fourth quarter of 2011 and $13.9 million in the first quarter of 2011.
“We are pleased that American Savings Bank continued its solid performance. Our loan portfolio grew for the 6th consecutive quarter. Credit costs continued to decline and we are cautiously optimistic about the continued improvement in Hawaii’s economy ,” said Richard Wacker, president and chief executive officer of American Savings Bank, in a written statement.
“While the prolonged low interest rate environment continues to challenge revenues in the near-term, we are remixing our loan portfolio to be well-positioned when interest rates rise.”
Net income for the first quarter of 2012 improved from the fourth quarter due to lower non-interest expense, lower provision for loan losses, and the release of reserves related to a tax position taken in a prior year ($1 million after-tax), partially offset by lower net interest income ($1 million after-tax) resulting from the continued low interest rate environment.
Compared to the same quarter of 2011, net income improved by $2.0 million primarily due to:
- $1 million lower provision for loan losses;
- $1 million higher noninterest income due to higher gains on sales of loans; and
- $1 million for the release of tax-related reserves which included taxes and expenses.
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