Some good news about the Hawaii economy

Despite the gloom and doom about failing investment banks, GDP contraction, falling tourism numbers and state revenue forecasts, there have been some positive headlines lately, too.

First Hawaiian Bank reported third-quarter profits of $55.4 million, up 6 percent over the third quarter of 2007. In addition, the bank reported record profits of $166.6 million in the first nine months of 2008, up 7 percent in the same period over 2007. These numbers reflect past activities not the future, of course, but they illustrate that the state has a strong economic base.

"Last year was the most profitable in our 150 year history, and for the first nine months we are on pace to exceed 2007’s earnings performance," Don Horner, president and CEO told Pacific Business News. “Our solid balance sheet, earnings, credit quality and ample liquidity allowed us to support our local communities by posting strong loan growth for the quarter while maintaining a prudent loan to deposit ratio. Capital ratios were also strengthened.”

Bank of Hawaii also performed well, considering what has been happening elsewhere. It reported a less than 1 percent loss in profits in the third quarter, while mainland regional banks struggled with the credit squeeze. Bankoh reported profits of $47.4 million for the quarter ending Sept. 30, compared to $47.8 million during the same period last year. "We are preparing for more challenging operating conditions as the Hawaii economy slows and Federal government programs begin to impact our market." said Allan Landon, its chairman and CEO.

Thanks to tumbling fuel prices, Matson Navigation Co. has lowered its fuel surcharge four times six weeks, announcing near the end of October that the surcharge will now be 25 percent, down from 27 percent, for Hawaii service. In addition, Matson will decrease the fuel surcharge for Guam and Micronesia from 28.5 percent to 26.5 percent. The new rates are effective Nov. 2. Matson customers will save between $45 and $75 per container as a result of the cuts.