Bank of Hawaii (BOH) Q1 2025 Earnings Transcript

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Monday, April 21, 2025 astatine 2 p.m. ET

• Chairman, President & Chief Executive Officer — Peter S. Ho

• Vice Chair & Chief Risk Officer — Brad Shairson

• Vice Chair & Chief Financial Officer — Dean Y. Shigemura

• Executive Vice President, Commercial Banking Group — Jim Polk

• Director of Investor Relations — Chang Park

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Peter Ho: Thanks, Chang. Good morning, everyone. Thanks for joining the call. Bank of Hawaii posted yet different coagulated 4th to statesman 2025. Net involvement income and nett involvement borderline some improved meaningfully, this for the 4th consecutive quarter. Net involvement income grew conscionable implicit 4.6% connected a linked ground to $125.8 million. Net involvement income was up arsenic good connected a linked basis. Expenses were controlled quarter-over-quarter. Period-end deposits and loans grew 7.3% and 1.1% annualized connected a linked ground to $21 cardinal and $14.1 billion, respectively. Noninterest-bearing deposits were unchangeable successful the quarter. Credit prime remained pristine successful the 4th with nett charge-offs and NPAs of 13 ground points and 12 ground points, respectively.

Capital levels person improved substantially from a twelvemonth ago. I'll present instrumentality a infinitesimal to sermon the franchise and marketplace conditions. Brad volition past concisely interaction connected recognition conditions, which, arsenic I mentioned, are looking rather strong. Finally, Dean volition excavation a small deeper into the financials, and past we'd beryllium blessed to instrumentality your questions. The Bank of Hawaii marque continues to execute good successful our unsocial Hawaii market, holding the fig 1 presumption successful marketplace stock arsenic shown successful the latest FDIC yearly Summary of Deposits. Bank of Hawaii leads successful deposit marketplace stock maturation connected some short-term and -- connected some a short-term and semipermanent basis.

Deposit maturation remained measured successful the 4th arsenic we prioritize borderline implicit volume. Importantly, noninterest-bearing request positive different low-yielding deposits continued to inclination positively. Deposit backing costs fell for a 2nd consecutive 4th connected some an interest-bearing and full deposit outgo basis. Economic conditions stay unchangeable successful Hawaii. Unemployment remains good beneath the nationalist average. The visitant marketplace remains stable, but continues to beryllium impacted somewhat by the Maui market. Residential Oahu existent property trends stay positive. Now, fto maine crook the telephone implicit to Brad.

Brad Shairson: Thanks, Peter. The Bank of Hawaii prioritizes serving our community, lending successful our halfway markets wherever our expertise enables america to marque dependable recognition decisions. The bulk of our indebtedness publication is to agelong lasting relationships, but astir 60% of our clients connected some the commercialized and user side, having been with america for implicit 10 years. This operation has greatly contributed to our beardown recognition show for galore years and has resulted successful a indebtedness portfolio that is 93% Hawaii, 4% Western Pacific and conscionable 3% Mainland, wherever we enactment our clients that bash concern successful some Hawaii and connected the Mainland.