Mixed Bag In Paradise: Bank Of Hawaii Q4 Beats On Profit, Despite Revenue Miss, Net Interest Income Takes A Dive

Bank of Hawaii Corp BOH reported fourth-quarter FY23 revenues of $158.07 million, missing the analyst consensus estimate of $161.5 million.

Quarterly Adjusted EPS of $1.01 beat the analyst consensus of $1.00.

Total deposits were $21.1 billion as of December 31, 2023, an increase of 1.2% Q/Q and 2.1% Y/Y.

Net interest income was $115.8 million, a decrease of 4.3% Q/Q and 17.7% Y/Y due to higher funding costs, partially offset by higher earning asset yields.

Net interest margin was 2.13%, unchanged Q/Q and down 47 basis points Y/Y.

Noninterest income was $42.3 million, down 16.0% Q/Q and up 2.7% Y/Y, in the quarter. The average yield on loans and leases was 4.54%, up 20 basis points Q/Q and 73 basis points Y/Y.

Provision for credit losses for the fourth quarter was $2.5 million compared with $0.2 million in the prior year quarter.

The Tier 1 Capital Ratio was 12.56% on December 31, 2023, vs. 12.53% on September 30, 2023, and 12.15% on December 31, 2022.  

Repurchase: The bank didn’t buy back any shares in the fourth quarter FY23 and had total remaining buyback authority under the share repurchase program of $126.0 million as of December 31, 2023.

Dividend: The Board of Directors declared a dividend of $0.70, payable on March 14, 2024, to shareholders of record at the close of business on February 29, 2024.

Price Action: BOH shares are trading lower by 0.35% at $67.96 premarket on the last check Monday.

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