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FIRST HAWAIIAN INC. REPORTS NET INCOME FOR THIRD QUARTER

 HONOLULU, Oct. 21 /PRNewswire/ -- First Hawaiian Inc. (NASDAQ: FHWN), parent company for First Hawaiian Bank, today announced net income of $62,479,000 for the nine months ended Sept. 30, 1993, compared to $64,455,000 for the same period in 1992, which is off 3.1 percent. Net income per share was $1.92 vs. $2.01, representing a 4.5 percent decline from the year earlier period.
 For the third quarter of 1993, net income was $18,730,000, or $.57 per share, compared to $21,245,000, or $.66 per share, for the same period last year, an 11.8 percent decrease, or 13.6 percent on a per share basis. As a result of the enactment of President Clinton's Omnibus Budget Reconciliation Act of 1993 which increased the corporate income tax rate from 34 percent to 35 percent effective Jan. 1, 1993, this quarter's earnings were adversely affected by a non-recurring retroactive adjustment for current and deferred income taxes totaling $1.9 million, or $.06 per share.
 According to Walter A. Dods Jr., First Hawaiian chairman and chief executive officer, the company's earnings this quarter were also affected by the continuing slump in the Hawaii economy.
 "Hawaii's economy continues to be plagued by slowdowns in the Japan and United States economies, especially in California," said Dods. The Hawaii economy is presently in its second year of economic contraction and this trend is presently projected to continue into 1994. After nearly breaking the 7 million tourists barrier in 1990, total visitor arrivals will register its third consecutive year of decline. "A downturn this long and sharp is unprecedented in the industry's history," Dods said. "On the positive side, unemployment levels have remained low compared to the national average, an indication that Hawaii's recession so far remains far more mild than many regional recessions," he added.
 Dods said that in this economic environment, First Hawaiian continues to focus on quality loan growth and cost efficiencies across its operation. The level of non-performing assets, including performing past due loans, continues to improve, especially in the latter category. Since the beginning of the year, these accruing loans, which are past due 90 days or more, have been reduced from $55.7 million to $15.9 million at Sept. 30, 1993. Dods stated that "We are continuing our aggressive efforts to further reduce the level of nonperforming assets from its current unacceptable levels."
 The company this quarter completed the acquisition of Pioneer Federal Savings Bank. As a result, First Hawaiian Inc. surpassed the $7 billion mark in total assets. The addition of Pioneer Federal's 19 branches brings to 91 First Hawaiian's total branch network in the state.
 As of Sept. 30, 1993, First Hawaiian's total assets compared to a year ago were up 9.6 percent to $7,135,274,000; total loans and leases were up 14.4 percent to $4,965,725,000; total deposits were up 5.1 percent to $5,095,262,000; and total stockholders' equity was up 8.9 percent to $597,422,000. The growth in assets, loans and deposits was primarily attributable to the acquisition of Pioneer Federal.
 First Hawaiian Inc. is a bank holding company with assets of $7.1 billion, whose principal subsidiary is First Hawaiian Bank, one of the largest banks in Hawaii. Other major subsidiaries include Pioneer Federal Savings Bank with 19 branches statewide; First Hawaiian Creditcorp Inc., the state's second largest financial services loan company; and First Hawaiian Leasing Inc., which is primarily engaged in commercial equipment and vehicle leasing.
 FIRST HAWAIIAN INC. AND SUBSIDIARIES
 Financial Highlights
 At and for the Quarter and Nine Months Ended
 Sept. 30, 1993 and 1992
 (In thousands of dollars, except per share data)
 Change
 1993 1992 Amount Percent
 Quarter ended
 Sept. 30:
 Net income $18,730 $21,245 ($2,515) (11.8 pct.)
 Dividends paid 9,084 8,433 651 7.7
 Per share:
 Net income .57 .66 (.09) (13.6)
 Dividends paid .28 .26 .02 7.7
 Nine Months
 ended
 Sept. 30:
 Net income $62,479 $64,455 ($1,976) (3.1 pct.)
 Dividends
 paid 27,253 25,079 2,174 8.7
 Per share:
 Net income 1.92 2.01 (.09) (4.5)
 Dividends paid .84 .78 .06 7.7
 Return on
 average total
 assets(a) 1.26 pct. 1.31 pct. (.05 pct.) (3.8)
 Return on average
 stockholders'
 equity(a) 14.43 16.65 (2.22) (13.3)
 At Sept. 30:
 Total
 assets $7,135,274 $6,508,289 $626,985 9.6 pct.
 Loans and
 leases(b) 4,965,725 4,341,161 624,564 14.4
 Deposits 5,095,262 4,848,658 246,604 5.1
 Stockholders'
 equity 597,422 548,678 48,744 8.9
 Non-performing
 assets to total
 assets(c) 1.05 pct. 1.11 pct. (.06 pct.) (5.4)
 Non-performing
 assets to total
 loans and leases
 and other real
 estate owned(c) 1.51 1.66 (.15) (9.0)
 Per share:
 Book value (at
 period end) $18.38 $16.88 $1.50 8.9
 Market price
 (close at
 period-end) 27.50 24.88 2.62 10.5
 (a) Annualized
 (b) Includes direct lease financing and tax-exempt loans.
 (c) Nonperforming assets consist of nonaccrual and renegotiated loans and leases and other real estate owned.
 -0- 10/21/93
 /CONTACT: Lisa Halvorson of First Hawaiian Inc., 808-525-6111/
 (FHWN)


CO: First Hawaiian, Inc.; First Hawaiian Bank; First Interstate Bank
 of Hawaii; First Interstate of Hawaii, Inc. ST: Hawaii IN: FIN SU: ERN


EH-MF -- LA025 -- 5348 10/21/93 14:52 EDT
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Date:Oct 21, 1993
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