Hawaii's two biggest local banks turned in earnings that mostly missed Wall Street's targets, a mild warning sign for the state's economy since nearly all local banking runs through homegrown institutions.

• Bank of Hawaii earned $64 million on $200 million in revenue, both just a bit below what was expected, though loans grew 2% to top $14 billion.
• First Hawaiian Bank beat on revenue (up nearly 2%, topping $230 million) but missed on profit, with earnings per share down 10% from what was expected.
• Bank of Hawaii's stock ticked up slightly and is up 3% this year; First Hawaiian's stock dropped Friday but bounced back more than 1% the next morning.
• Separately, Microsoft is offering buyouts to 60,000 employees, and the Dow dropped over 650 points Friday.

Outlook: Local bank earnings are a decent proxy for how Hawaii's economy is holding up, and this round points to steady but slightly softening conditions rather than anything alarming.