(RTTNews) -  Bank of Hawaii Corp.(BOH: News ) Monday reported a decline in profit for the third quarter, impacted negatively by higher provision for credit losses, and higher taxes due to the absence of a tax credit recognized in the previous year period. However, on a per share basis, earnings topped analysts' estimate.

Net income for the quarter was $36.5 million or $0.76 per share, down from $47.4 million or $0.99 per share in the year-ago quarter. Earlier-year third quarter results included net credit of $8.9 million related to the company's resolution of Sale In/Lease Out, or SILO, leases with the Internal Revenue Service.

On an average, eight analysts polled by Thomson Reuters expected the company to earn $0.68 per share for the quarter. Analysts' estimates typically exclude special items.

Net interest income, on a taxable equivalent basis, were $109.2 million, up from $103.8 million last year. Net interest income for the quarter included a charge of $1 million related to impairment of the residual value of an aircraft leveraged lease investment. Noninterest income edged down to $56.8 million from $57.0 million in the prior year. Analysts expected revenues of $161.09 million for the quarter.

The Honolulu, Hawaii-based company noted that quarterly results included a provision for credit losses of $27.5 million, higher than $20.4 million last year. The provision exceeded net charge-offs by $5.2 million, compared with $13.0 million last year.

Effective tax rate for the quarter was 32.71%, compared with 11.24% in the previous year. Taxes in the quarter included a $0.4 million credit related to the previously mentioned leveraged lease residual value impairment. The lower effective tax rate in the year-ago quarter was due to the tax credit related to the previously mentioned SILO lease settlement.
Total deposits at September 30 were $9.25 billion, up $1.59 billion from $7.66 billion a year earlier. The company noted that the increase in deposits was widespread among deposit categories except time deposits. The company slowed deposit growth during quarter due to the limited lending opportunities.

Net loans and leases for the quarter were $5.79 billion, compared with $6.42 billion in the previous year. The company continued to decrease loans during the quarter due to reduced loan demand along with planned credit exits and payoffs to reduce overall portfolio risk.

As at September 30, the company's total assets were $12.21 billion, higher than $10.34 billion in the year-ago quarter.

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