Mortgage banking contributed $5.8 million to Bank of Hawaii’s 2Q13 noninterest income line, down from $6.4 million in 1Q13 and $7.5 million in 2Q12.
In its press release, chairman, president and CEO Peter Ho said, “The recent trend in higher interest rates should positively impact our operating earnings over time through improved net interest margin. We would note, however, that nearer term, we will likely see a meaningful slowing in our mortgage banking business as the refinance market potentially slows and the purchase market remains impacted by exceptionally tight housing inventory.”
B of H had $38 million in net income for the period, compared with $41 million in 2Q12.
On the asset quality side of the ledger, the bank reported total nonperforming assets of $36.4 million at June 30. This is down from $38.4 million at March 31and from $41.5 million at June 30, 2012. It added nonperforming assets remain above historical levels due to the lengthy judicial foreclosure process for residential mortgage loans in Hawaii.
The bank also commented about the state’s economy in its press release. The seasonally adjusted unemployment rate for June was 4.6%, compared with 5.1% at yearend 2012 and 7.6% nationally.
For the first six months of the year, single-family home sales on Oahu (where Honolulu is located) were almost 12% higher than the same period in 2012. The median
