Bank of Hawaii sets aside $33.6M for virus loan defaults

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HONOLULU — Bank of Hawaii Corp. recently announced it has set aside $33.6 million to cover potential loan losses tied to the coronavirus pandemic.

The state’s second-largest bank also suspended stock buybacks beginning in mid-March, The Honolulu Star-Advertiser reported last week.

Bank of Hawaii reported its net income fell 40.9% in the first quarter after it set aside the $33.6 million for loan losses.

Bank of Hawaii’s move mirrored actions announced the week prior by the nation’s largest banks, which collectively set aside billions of dollars for potential loan defaults and suspended stock buybacks as a result of the COVID-19 outbreak.

The bank posted net income of $34.7 million, or 87 cents per share, compared with $58.8 million, or $1.43 per share, in the year-earlier period.

The bank said it processed more than 2,100 Paycheck Protection Program loans in excess of $525 million to small businesses and electronically distributed 65,000 recovery payments of $112 million.

The bank said it also made 5,200 modifications to its commercial and consumer loans, representing 9.8% of its outstanding loans.

Bank of Hawaii declared a quarterly dividend of 67 cents per share payable June 12.