Bank Of Hawaii Q2 Sales Miss Estimates On Lower Net Interest Income, Deposits Fall

Bank Of Hawaii Corporation BOH reported Q2 revenues of $167.60 million, which missed the consensus of $170.07 million.

Quarterly EPS of $1.12 was in line with the consensus.

Total deposits were $20.5 billion on June 30, 2023, a decrease of 2.5% from the year ago.

Net interest income fell 6.4% Y/Y to $124.3 million, primarily due to higher funding costs, partially offset by higher earning asset yields. 

Consequently, the net interest margin decreased by 25 basis points to 2.22%. 

Noninterest income was $43.3 million in the second quarter of 2023, an increase of 2.6% Y/Y.

The average yield on loans and leases was 4.19%, up 98 basis points year over year.

Provision for credit losses for the second quarter was $2.5 million compared with a net benefit of $2.5 million in the year-ago period.

The Tier 1 Capital Ratio was 12.21% on June 30, lower than 13.01% Y/Y.

Net income came in at $46.06 million, down 19% Y/Y.

No shares of common stock were repurchased under the share repurchase program in the second quarter of 2023.

The return on average common equity for the second quarter of 2023 was 14.95% compared with 15.79% in the previous quarter and 18.19% in the same quarter of 2022.

"We also added additional liquidity to the balance sheet with cash and other immediately available borrowing lines growing to $8.5 billion at quarter end," said Peter Ho, Chairman, President, and CEO.

Dividend: The Board of Directors declared a dividend of $0.70, payable on September 15, 2023, to shareholders of record at the close of business on August 31, 2023.

Price Action: BOH shares traded higher by 3.51% at $55.58 on the last check Monday.