Bank of Hawaii 2nd-quarter profit jumps 50 percent; Peter Ho promoted to chairman, CEO posts

Bank of Hawaii 2Q profit soars; Peter Ho named CEO

HONOLULU — Bank of Hawaii Corp. said Monday that its second-quarter profit jumped 50 percent, beating Wall Street expectations, as gradual improvement in Hawaii’s economy helped the bank trim its provision for credit losses.

Separately, Bank of Hawaii said Monday that its president and chief banking officer, Peter Ho, will be promoted to chairman, CEO and president. Ho, 45, will replace Allan Landon, 62, who in April had announced his plans to retire this year. Landon’s retirement will become effective Friday.

The Honolulu-based company reported net income for the three months ended June 30 of $46.6 million, or 96 cents per share, up from a profit of $31 million, or 65 cents per share, in last year’s first quarter.

Analysts surveyed by Thomson Reuters had forecast a profit of 74 cents per share, on average, in the latest quarter.

Bank of Hawaii’s provision for credit losses of was $15.9 million, down from $28.7 million in the year-ago quarter.

“Our profitability remained solid, and the Hawaii economy continues to show signs of gradual improvement,” Landon said.

The bank increased its allowance for loan and lease losses to $147.4 million at June 30 from $146.4 million at March 31, and from $137.4 million at June 30, 2009.

However, Landon said that “economic and risk indicators suggest that further increases to the allowance may not be necessary.”

He also said Bank of Hawaii plans to resume its share repurchase program during the third quarter.

Net interest income, or the amount earned from loans and deposits, rose slightly to $103.9 million from $102.9 million in last year’s second quarter.

Noninterest income, or money earned from fees and charges, rose 15 percent to $68.9 million from $59.8 million.

Ho joined Bank of Hawaii in 1993 and became chief banking officer in 2006. He was promoted to president in 2008.

Landon joined Bank of Hawaii in 2000, and had served as chairman and SEC since Sept. 1, 2004.

Bank of Hawaii shares fell 54 cents to close at $50.29.

(This version CORRECTS Landon’s retirement date to Friday from Wednesday in paragraph 2)