In This Article:
-
Net Income: $40.4 million for the third quarter.
-
Earnings Per Share (EPS): $0.93 per common share.
-
Net Interest Income: Increased by $2.8 million in the third quarter.
-
Net Interest Margin (NIM): Increased by 3 basis points.
-
Non-Interest Income: Totaled $45.1 million, up $3 million from the second quarter.
-
Operating Expenses: Reported and core expenses were $107.1 million in the third quarter.
-
Provision for Credit Losses: $3 million for the quarter.
-
Tier 1 Capital Ratio: Increased to 14.05%.
-
Total Capital Ratio: Increased to 15.11%.
-
Dividends: $28 million paid to common shareholders and $3.4 million in preferred stock dividends.
-
Allowance for Credit Losses (ACL): Ended the quarter at $147.3 million.
-
Net Charge-Offs: $3.8 million or 11 basis points annualized.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Bank of Hawaii Corp (NYSE:BOH) reported an increase in net income and diluted earnings per share for the third quarter of 2024.
-
Net interest income and net interest margin expanded for the second consecutive quarter.
-
The company maintained its top deposit market share position in Hawaii for 2024.
-
Credit quality remains strong with low net charge-offs and stable non-performing assets.
-
Capital levels improved across all measures, with a Tier 1 capital ratio of 14.05% and a total capital ratio of 15.11%.
Negative Points
-
Loan growth has slowed due to suppressed demand from the high rate environment.
-
Deposit mix shift negatively impacted net interest income by $2.6 million in the third quarter.
-
Non-interest bearing and low-yield interest bearing deposit balances declined by $315 million linked quarter.
-
Criticized assets grew slightly, reaching 2.42% at quarter end.
-
The company expects a one-time charge of $2.3 million related to the Visa Class B conversion ratio change in the fourth quarter.
Q & A Highlights
Q: Were there any interest recoveries or one-timers in the margin this quarter? A: Dean Shigemura, CFO: There was a small amount of reversals, about $100,000, so nothing material. The margin in September was 2.17%.
Q: Can you summarize the impact of the rate cut on the margin? A: Dean Shigemura, CFO: We expect net interest income (NII) and margin to gently increase quarter-over-quarter. Asset repricing from cash flows will be partially offset by continued deposit remix. Over the longer term, the Fed funds rate cut will be accretive, initially having a slight negative impact.