The market expects Bank of Hawaii (BOH) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released ...

The following MD&A is intended to help the reader understand the Company and its operations and is focused on our fiscal 2023 and 2022 financial results, including comparisons of year-to-year performance between these years. Discussion and analysis of our 2021 fiscal year, as well as the year-to-year comparison between fiscal 2022 and 2021, are included "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 in our Annual Report on Form 10-K for the fiscal ...

Bank of Hawaii Corporation (BOH) reported fourth-quarter 2023 earnings per share (EPS) of 72 cents, missing the Zacks Consensus Estimate of 89 cents. The bottom line compared unfavorably with $1.50 earned in the year-ago quarter.The EPS for the reported quarter included an FDIC Special Assessment charge of 29 cents. Excluding this, adjusted EPS would have been $1.01.BOH's quarterly results were affected by a decline in net interest income (NII) and a rise in provisions and expenses. However, improvement in ...

Bank of Hawaii Corporation (NYSE:BOH) Q4 2023 Earnings Conference Call January 22, 2024 1:00 PM ET Company Participants Cindy Wyrick - Director of Investor Relations Peter Ho - Chairman, President and Chief Executive Officer Brad Shairson - Vice Chair and Deputy Risk Officer Mary Sellers - Vice Chair and Chief Risk Officer Dean Shigemura - Vice Chair and Chief Financial Officer Conference Call Participants Jeffrey Rulis - D.A. Davidson Andrew Liesch - Piper Sandler Kelly Motta - KBW Operator Ladies and gent ...

cost of funds total deposits /h Bank of Hawaiʻi Corporation 0.05% 0.07% 0.20% 0.46% 0.75% 1.08% 1.40% 1.67% 0.08% 0.12% 0.31% 0.66% 1.09% 1.52% 1.85% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 BOH KRX median source: S&P Capital IQ; KBW Regional Banking Index (KRX) as of 1/3/23 12 deposit beta performance /h Bank of Hawai'i 0.0% 3.2% 7.1% 11.5% 15.9% 21.0% 26.1% 0.0% 3.5% 9.6% 15.4% 23.1% 28.7% 33.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 29.6% 31.4% 31.6% Oct-23 ...

For the quarter ended December 2023, Bank of Hawaii (BOH) reported revenue of $158.07 million, down 13.1% over the same period last year. EPS came in at $0.72, compared to $1.50 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $161.03 million, representing a surprise of -1.84%. The company delivered an EPS surprise of -19.10%, with the consensus EPS estimate being $0.89.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

Bank of Hawaii (BOH) came out with quarterly earnings of $0.72 per share, missing the Zacks Consensus Estimate of $0.89 per share. This compares to earnings of $1.50 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -19.10%. A quarter ago, it was expected that this bank holding company would post earnings of $0.96 per share when it actually produced earnings of $1.17, delivering a surprise of 21.88%.Over the last four quarters, ...

HONOLULU--(BUSINESS WIRE)--Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $4.14 for the full year of 2023 compared with diluted earnings per common share of $5.48 for the full year of 2022. An industry-wide FDIC Special Assessment resulted in a $14.7 million charge in the fourth quarter of 2023 which negatively impacted diluted earnings per common share by $0.29. Net income for the year was $171.2 million, down 24.2% from the previous year. The return on average ...

Wall Street analysts expect Bank of Hawaii (BOH) to post quarterly earnings of $0.89 per share in its upcoming report, which indicates a year-over-year decline of 40.7%. Revenues are expected to be $161.03 million, down 11.5% from the year-ago quarter.The current level reflects an upward revision of 3.9% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Before a c ...

[Part I - Financial Information](index=2&type=section&id=Part%20I%20-%20Financial%20Information) [Item 1. Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents the unaudited consolidated financial statements for the periods ended September 30, 2023 - The statements are prepared per U.S. GAAP for interim reporting and include all necessary adjustments for fair presentation[103](index=103&type=chunk)[225](index=225&type=chunk) [Consolidated Statements of Income](index=3&type=section&id=Consolidated%20Statements%20of%20Income) Net income for Q3 2023 was $47.9 million, a decrease driven by lower net interest income Consolidated Income Statement Highlights (Q3 2023 vs Q3 2022) | Metric (in thousands, except per share) | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | **Net Interest Income** | $120,937 | $141,655 | | **Provision for Credit Losses** | $2,000 | $0 | | **Total Noninterest Income** | $50,334 | $30,660 | | **Total Noninterest Expense** | $105,601 | $105,749 | | **Net Income** | $47,903 | $52,801 | | **Diluted EPS** | $1.17 | $1.28 | Consolidated Income Statement Highlights (Nine Months Ended Sep 30) | Metric (in thousands, except per share) | 2023 | 2022 | | :--- | :--- | :--- | | **Net Interest Income** | $381,240 | $399,820 | | **Provision for Credit Losses** | $6,500 | ($8,000) | | **Total Noninterest Income** | $134,326 | $116,369 | | **Total Noninterest Expense** | $321,556 | $312,562 | | **Net Income** | $140,806 | $164,497 | | **Diluted EPS** | $3.42 | $3.98 | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income improved to $29.7 million in Q3 2023 due to smaller unrealized losses on securities Comprehensive Income (Loss) (in thousands) | Period | Net Income | Other Comprehensive Loss | Comprehensive Income (Loss) | | :--- | :--- | :--- | :--- | | **Q3 2023** | $47,903 | ($18,180) | $29,723 | | **Q3 2022** | $52,801 | ($79,246) | ($26,445) | | **Nine Months 2023** | $140,806 | ($6,953) | $133,853 | | **Nine Months 2022** | $164,497 | ($381,312) | ($216,815) | [Consolidated Statements of Condition](index=5&type=section&id=Consolidated%20Statements%20of%20Condition) Total assets were $23.55 billion, with modest growth in loans and deposits as of September 30, 2023 Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | $23,549,785 | $23,606,877 | | Net Loans and Leases | $13,774,228 | $13,501,981 | | Investment Securities (AFS + HTM) | $7,475,337 | $8,258,962 | | **Total Deposits** | $20,802,309 | $20,615,696 | | **Total Shareholders' Equity** | $1,363,840 | $1,316,995 | [Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity grew to $1.364 billion, driven by net income partially offset by dividends and buybacks - Total Shareholders' Equity increased to **$1,363.8 million** at September 30, 2023, from $1,317.0 million at December 31, 2022[87](index=87&type=chunk) - For the nine months ended September 30, 2023, **net income of $140.8 million** was a primary driver of the increase in equity[87](index=87&type=chunk) - Key reductions to equity included cash dividends on common stock (**$83.8 million**), preferred stock (**$5.9 million**), and common stock repurchases (**$14.1 million**)[87](index=87&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash increased by $250.5 million, with investing activities providing cash and financing activities using cash Cash Flow Summary (Nine Months Ended Sep 30, 2023, in thousands) | Activity | Amount | | :--- | :--- | | Net Cash Provided by Operating Activities | $124,570 | | Net Cash Provided by Investing Activities | $463,718 | | Net Cash Used in Financing Activities | ($337,829) | | **Net Change in Cash and Cash Equivalents** | **$250,459** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Details accounting policies, new standards, and provides breakdowns of key financial statement components [Note 3. Investment Securities](index=11&type=section&id=Note%203.%20Investment%20Securities) The company held $7.84 billion in securities, with unrealized losses of $1.35 billion due to interest rates Investment Securities Portfolio (Amortized Cost, in thousands) | Category | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Available-for-Sale | $2,752,093 | $3,172,436 | | Held-to-Maturity | $5,088,013 | $5,414,139 | | **Total** | **$7,840,106** | **$8,586,575** | - The company sold various corporate and municipal bonds from its AFS portfolio in Q3 2023, resulting in a **realized loss of $4.6 million**[117](index=117&type=chunk) - Gross unrealized losses of **$365.3 million in AFS** and **$983.5 million in HTM** securities as of Sep 30, 2023, were attributed to interest rate changes, not credit quality issues[92](index=92&type=chunk)[244](index=244&type=chunk) - As of September 30, 2023, investment securities with a carrying value of **$7.2 billion were pledged** to secure deposits, repurchase agreements, and FRB discount window borrowing[116](index=116&type=chunk) [Note 4. Loans and Leases and the Allowance for Credit Losses](index=14&type=section&id=Note%204.%20Loans%20and%20Leases%20and%20the%20Allowance%20for%20Credit%20Losses) Total loans grew to $13.92 billion, with an Allowance for Credit Losses of $145.3 million (1.04% of loans) Loan and Lease Portfolio (in thousands) | Category | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Commercial | $5,679,469 | $5,464,503 | | Consumer | $8,240,022 | $8,181,917 | | **Total Loans and Leases** | **$13,919,491** | **$13,646,420** | Allowance for Credit Losses (ACL) Activity (Nine Months Ended Sep 30, 2023, in thousands) | Description | Amount | | :--- | :--- | | Balance at Beginning of Period | $144,439 | | Net Charge-Offs | ($6,094) | | Provision for Credit Losses | $6,918 | | **Balance at End of Period** | **$145,263** | - The ACL as of Sep 30, 2023, considered the impact of the **Maui wildfires**, factoring in insurance coverage and collateral values[141](index=141&type=chunk) - **Non-accrual loans decreased to $10.5 million** as of Sep 30, 2023, from $11.6 million at year-end 2022[164](index=164&type=chunk) [Note 10. Business Segments](index=32&type=section&id=Note%2010.%20Business%20Segments) Consumer and Commercial Banking were profitable, while the Treasury segment recorded a significant loss Net Income (Loss) by Business Segment (Nine Months Ended Sep 30, in thousands) | Segment | 2023 | 2022 | | :--- | :--- | :--- | | Consumer Banking | $103,222 | $57,026 | | Commercial Banking | $98,197 | $88,576 | | Treasury and Other | ($60,613) | $18,895 | | **Consolidated Total** | **$140,806** | **$164,497** | - The company's internal management accounting process, including funds transfer pricing and expense allocations, is used to measure segment performance[233](index=233&type=chunk)[234](index=234&type=chunk) [Note 11. Derivative Financial Instruments](index=35&type=section&id=Note%2011.%20Derivative%20Financial%20Instruments) The company uses interest rate swaps to manage risk, with a notional hedging amount of $2.0 billion Derivative Financial Instruments (Notional Amounts, in thousands) | Instrument | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Designated as Hedges:** | | | | Interest Rate Swaps | $2,000,000 | $0 | | **Not Designated as Hedges:** | | | | Interest Rate Swaps (Receive/Pay) | $4,010,552 | $3,642,866 | | Interest Rate Lock Commitments | $11,764 | $3,860 | - The company entered into pay-fixed, receive-floating interest rate swaps designated as fair value hedges to manage exposure to changes in the fair value of its AFS securities and fixed-rate loans[247](index=247&type=chunk) [Note 13. Fair Value of Assets and Liabilities](index=39&type=section&id=Note%2013.%20Fair%20Value%20of%20Assets%20and%20Liabilities) Details the fair value hierarchy for assets and liabilities, with Level 3 assets primarily in derivatives Assets Measured at Fair Value on a Recurring Basis (Sep 30, 2023, in thousands) | Category | Level 1 | Level 2 | Level 3 | Total | | :--- | :--- | :--- | :--- | :--- | | Investment Securities AFS | $142,059 | $2,245,265 | $0 | $2,387,324 | | Mortgage Servicing Rights | $0 | $0 | $685 | $685 | | Derivatives | $0 | $71 | $210,663 | $210,734 | | Other Assets | $51,435 | $1,450 | $0 | $52,885 | Fair Value of Financial Instruments Not on Balance Sheet (Sep 30, 2023, in thousands) | Instrument | Carrying Amount | Fair Value | | :--- | :--- | :--- | | Investment Securities HTM | $5,088,013 | $4,104,469 | | Loans | $13,651,759 | $12,416,800 | | Time Deposits | $2,659,014 | $2,627,361 | - **Level 3 assets**, requiring significant management judgment, include Mortgage Servicing Rights (**$27.1M fair value**) and Interest Rate Swap Agreements (**$8.2M net fair value**)[271](index=271&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses a 9% YoY net income decline, the Maui wildfire impact, and the company's strong overall risk profile [Overview and Maui Wildfires](index=48&type=section&id=Overview%20and%20Maui%20Wildfires) Details the company's response to the Maui wildfires, with an estimated potential loss exposure of $10.8 million - The company's business strategy focuses on balancing growth and risk management, leveraging market knowledge and brand strength[288](index=288&type=chunk) - In response to the Maui wildfires, the company donated **$100,000 to the Maui Strong Fund** and implemented emergency relief programs for affected customers[289](index=289&type=chunk) Maui Wildfire Loan Exposure (as of Sep 30, 2023) | Exposure Category | Amount (in millions) | | :--- | :--- | | Total Loans to Impacted Customers | $169.2 | | Loans Under Payment Deferral | $136.4 | | **Estimated Potential Loss Exposure** | **$10.8** | [Earnings Summary](index=49&type=section&id=Earnings%20Summary) Q3 2023 net income fell 9% to $47.9 million due to a 15% drop in net interest income Q3 2023 vs. Q3 2022 Performance | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | Net Income | $47.9M | $52.8M | -9% | | Diluted EPS | $1.17 | $1.28 | -9% | | Net Interest Income | $120.9M | $141.7M | -15% | | Provision for Credit Losses | $2.0M | $0 | +$2.0M | | Noninterest Income | $50.3M | $30.7M | +64% | - The return on average common equity was **15.38% for Q3 2023**, compared to 16.98% in Q3 2022[11](index=11&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.70 per common share**[26](index=26&type=chunk) - **No shares of common stock were repurchased** in Q3 2023, with total remaining buyback authority at $126.0 million[26](index=26&type=chunk) [Analysis of Statements of Income](index=51&type=section&id=Analysis%20of%20Statements%20of%20Income) Net interest income declined 15% YoY as rising funding costs outpaced growth in earning asset yields - Net interest income is analyzed through average balances, yields, and rates, with detailed tables provided for changes on a taxable-equivalent basis[12](index=12&type=chunk)[13](index=13&type=chunk) [Analysis of Statements of Condition](index=56&type=section&id=Analysis%20of%20Statements%20of%20Condition) Total assets remained flat at $23.5 billion, with loan growth offsetting a decline in investment securities - The carrying value of the investment securities portfolio **decreased to $7.5 billion** at Sep 30, 2023, from $8.3 billion at Dec 31, 2022[22](index=22&type=chunk) - Total loans and leases **increased by $273.1 million (2%)** from year-end 2022, primarily from growth in commercial and residential lending[430](index=430&type=chunk) - Total deposits **increased by $186.6 million (1%)** from year-end 2022, with a notable shift into time deposits[435](index=435&type=chunk) [Analysis of Business Segments](index=61&type=section&id=Analysis%20of%20Business%20Segments) Consumer and Commercial Banking net income grew, while the Treasury segment reported a significant net loss Business Segment Net Income (Nine Months Ended Sep 30, in thousands) | Segment | 2023 | 2022 | | :--- | :--- | :--- | | Consumer Banking | $103,222 | $57,026 | | Commercial Banking | $98,197 | $88,576 | | Treasury and Other | ($60,613) | $18,895 | | **Consolidated Total** | **$140,806** | **$164,497** | [Corporate Risk Profile](index=63&type=section&id=Corporate%20Risk%20Profile) The company maintains a strong risk profile with low credit risk, managed market risk, and robust liquidity - Non-Performing Assets (NPAs) decreased to **$11.5 million (0.08% of loans)** at Sep 30, 2023, from $12.6 million at Dec 31, 2022[352](index=352&type=chunk) - The total Reserve for Credit Losses stood at **$151.7 million** as of Sep 30, 2023, with the Allowance for Credit Losses ratio at 1.04% of total loans[343](index=343&type=chunk) - The company manages interest rate risk using Net Interest Income (NII) and Economic Value of Equity (EVE) sensitivity analysis, remaining within board-approved limits[360](index=360&type=chunk) - As of Sep 30, 2023, the company had significant contingent liquidity, including **$6.1 billion in borrowing capacity** from the Federal Reserve and **$2.5 billion from the FHLB**[391](index=391&type=chunk) [Capital Management](index=69&type=section&id=Capital%20Management) The company remains 'well-capitalized' with a CET1 ratio of 11.29% and all ratios exceeding regulatory minimums Regulatory Capital Ratios | Ratio | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Common Equity Tier 1 | 11.29% | 10.92% | | Tier 1 Capital | 12.53% | 12.15% | | Total Capital | 13.56% | 13.17% | | Tier 1 Leverage | 7.22% | 7.37% | - As of September 30, 2023, the Company's capital levels remained characterized as **'well-capitalized'**[380](index=380&type=chunk) - Remaining buyback authority under the share repurchase program was **$126.0 million** as of September 30, 2023[383](index=383&type=chunk) - In October 2023, the Board declared a quarterly cash dividend of **$0.70 per common share**[396](index=396&type=chunk) [Part II - Other Information](index=72&type=section&id=Part%20II%20-%20Other%20Information) [Risk Factors](index=72&type=section&id=Item%201A.%20Risk%20Factors) Highlights new risks from banking sector instability, including potential adverse regulatory changes - Recent bank failures have led to **decreased confidence in the banking sector**, market disruption, and could adversely impact the company's stock price and volatility[415](index=415&type=chunk) - There is a risk of potentially adverse changes to laws or regulations, including **higher capital requirements or increased FDIC premiums**, which could materially impact the business[416](index=416&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased in Q3 2023, with $126.0 million remaining under the buyback authorization Issuer Purchases of Equity Securities (Q3 2023) | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Purchased as Part of Program | Remaining Authorization (USD) | | :--- | :--- | :--- | :--- | :--- | | Jul 2023 | 2,923 | $43.00 | 0 | 126,038,927 | | Aug 2023 | 0 | - | 0 | 126,038,927 | | Sep 2023 | 0 | - | 0 | 126,038,927 | | **Total** | **2,923** | **$43.00** | **0** | **126,038,927** | [Controls and Procedures](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes in the quarter - The CEO and CFO concluded that the Company's **disclosure controls and procedures were effective** as of September 30, 2023[400](index=400&type=chunk) - **No material changes** to the Company's internal control over financial reporting occurred during the third quarter of 2023[412](index=412&type=chunk)