American Savings Bank, a wholly-owned subsidiary of Hawaiian Electric Industries, reported 2020 net income of $57.6 million, compared to $89.0 million in 2019.
Net income for the fourth quarter of 2020 was $15.7 million, compared to $12.2 million in the third, or linked, quarter of 2020 and $28.2 million in the fourth quarter of 2019.
Net interest income was $233.5 million in 2020 compared to $248.1 million in 2019.
Fourth quarter 2020 net interest income was $58.5 million compared to $57.3 million in the linked quarter, and $60.9 million in the fourth quarter of 2019.
Net interest income increased over the linked quarter, primarily due to higher average earning assets and lower funding costs in the fourth quarter.
Yield on earning assets continued to be negatively impacted by the lower interest rate environment.
Net interest margin was 3.29% in 2020, compared to 3.85% in 2019.
Net interest margin for the fourth quarter of 2020 was 3.12%, flat compared to the linked quarter and down from 3.74% in the fourth quarter of 2019.
The provision for credit losses was $50.8 million in 2020 compared to $23.5 million in 2019.
The increase in provision for credit losses reflects additional credit risk within the loan portfolio associated with the negative impacts of COVID-19.
Provision for credit losses in the fourth quarter of 2020 was $11.3 million compared to $14.0 million in the linked quarter and $5.6 million in the fourth quarter of 2019.
The 2020 net charge-off ratio was 0.40% compared to 0.45% in 2019.
The net charge-off ratio for the fourth quarter of 2020 was 0.36%, compared to 0.32% in the linked quarter and 0.41% in the fourth quarter of 2019.
Nonaccrual loans as a percent of total loans receivable held for investment was 0.89% in the fourth quarter of 2020, compared to 0.77% in the linked quarter and 0.58% in the prior year quarter.
Noninterest income for 2020 was $78.1 million4 compared to $72.8 million in 2019.5 Noninterest income was $20.2 million in the fourth quarter of 2020, compared to $19.0 million in the linked quarter and $26.3 million in the fourth quarter of 2019.
The decrease in noninterest income from the prior year quarter was primarily due to gains on sales of former properties in the fourth quarter of 2019,6 partially offset by higher mortgage banking income in the fourth quarter of 2020. ■