Bank of Hawaii Corp (BOH) Q3 2023 Earnings: Solid Performance Despite Challenges
Bank of Hawaii Corp (NYSE:BOH) reported diluted earnings per common share of $1.17 for Q3 2023, up from $1.12 in the previous quarter but down from $1.28 in Q3 2022.
Net income for Q3 2023 was $47.9 million, a 4.0% increase from the previous quarter and a 9.3% decrease from Q3 2022.
Total deposits increased by 1.4% compared to the previous quarter.
The board of directors declared a dividend of $0.70 per common share.
Bank of Hawaii Corp (NYSE:BOH) released its Q3 2023 earnings report on October 23, 2023. Despite facing challenges, the company delivered solid financial results with a net income of $47.9 million, up 4.0% from the previous quarter. However, this represents a 9.3% decrease from the same quarter of 2022. The diluted earnings per common share for Q3 2023 were $1.17, compared to $1.12 in the previous quarter and $1.28 in Q3 2022.
Financial Performance Highlights
BOH's total deposits were up 1.4% linked quarter, and average deposits were up by 2.4%, driven by growth in core relationship deposits. The company's credit quality remained strong, with non-performing assets of 0.08% at quarter end and net charge offs of 0.06% in the quarter. However, the net interest margin (NIM) declined modestly by 9 basis points.
Noninterest income for Q3 2023 was $50.3 million, a significant increase of 16.4% from the previous quarter and a whopping 64.2% increase from the same period in 2022. This included a $14.7 million gain from the early termination of private repurchase agreements. On the other hand, noninterest expense was $105.6 million, a slight increase of 1.5% from the previous quarter.
Asset Quality and Balance Sheet
The company's overall asset quality remained strong during Q3 2023. The provision for credit losses for the quarter was $2.0 million compared with $2.5 million in the previous quarter. Total non-performing assets were $11.5 million at the end of September 2023, flat from June 2023 and down $2.3 million from September 2022.
As of September 30, 2023, total assets were $23.5 billion, a decrease of 5.6% from June 2023 but an increase of 1.8% from September 2022. Total loans and leases were $13.9 billion, flat from June 2023 but up 4.5% from September 2022. Total deposits were $20.8 billion, an increase of 1.4% from June 2023 but a decrease of 0.4% from September 2022.
Capital and Dividends
The company's capital levels increased quarter over quarter and remain well above regulatory well-capitalized minimums. The Tier 1 Capital Ratio was 12.53% at the end of September 2023, up from 12.21% at the end of June 2023. The board of directors declared a quarterly cash dividend of $0.70 per share on the companys outstanding common shares.
Despite the challenges faced, Bank of Hawaii Corp (NYSE:BOH) continues to deliver solid financial results, demonstrating the company's resilience and commitment to its stakeholders.
This article first appeared on GuruFocus.
