Bank Of Hawaii Corporation · NYSE:BOH
Bank Of Hawaii — Q4 2022 Earnings Presentation
24 slides from Bank Of Hawaii's earnings presentation, Jan 23, 2023
Slide 1: Bank of Hawai‘i Corporation fourth quarter 2022 financial report
Bank of Hawai‘i Corporation fourth quarter 2022 financial report January 23, 2023 Exhibit 99.2
Slide 2: Forward-looking statements
this presentation, and other statements made by the Company in connection with it, may contain forward-looking statements concerning, among other things, forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those foreca
Slide 3: Unemployment experience & forecast
unemployment experience & forecast source for Hawaii unemployment: University of Hawaii Economic Research Organization (UHERO), seasonally adjusted source for national unemployment: Bureau of Labor Statistics, seasonally adjusted 3
Slide 4: Visitor arrivals monthly by market, indexed to January
4 visitor arrivals monthly by market, indexed to January 2017 source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT)
Slide 5: Revenue per available room
revenue per available room revenue per available room (RevPAR) 5 source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT)
Slide 6: Stable real estate prices
stable real estate prices Oahu market indicators – Dec 2022 6 source: Honolulu Board of Realtors, compiled from MLS data
Slide 7: 4Q financial update
4M Bank of Hawai'i Corporation 4Q financial update
Slide 8: Balanced core loan growth
balanced core loan growth $ in millions 8 annual growth rate commercial consumer $13,646 note: numbers may not add up due to rounding, CAGR, annual growth rate, and q-o-q core loan growth exclude PPP market share includes four banks: Bank of Hawai‘i, First Hawaiian Bank, American Savings Bank (ASB),
Slide 9: Low cost, long duration deposits
low cost, long duration deposits $ in billions 9 source: S&P Capital IQ 2016 – 2022 CAGR: 6.3%
Slide 10: Strong deposit beta performance
strong deposit beta performance $ in billions 10 note: beta calculated as change in average total deposit rate divided by change in average Fed Funds rate
Slide 11: Cashflow and repricing
11 cashflow and repricing note: numbers may not add up due to rounding matured/run-off yield reinvestment opportunity
Slide 12: NII year-over-year comparison
NII year-over-year comparison $ in millions 12 note: numbers may not add up due to rounding; core NII excludes PPP and significant items
Slide 13: NII headwinds
NII headwinds $ in millions 13 note: numbers may not add up due to rounding
Slide 14: Near term NII drivers
near term NII drivers 14 likely dilutive yield curve deposit cost uncertain deposit levels deposit beta likely accretive loan growth earning asset yields
Slide 15: Disciplined expenses
disciplined expenses $ in millions 15 rationalization of expenses across core and innovation note: numbers may not add up due to rounding
Slide 16: Financial summary
financial summary $ in millions, except per share amounts 16 note: numbers may not add up due to rounding
Slide 17: Strong risk-based capital
17 strong risk-based capital fortress capital position note: 4Q22 regulatory capital ratios are preliminary; KBW Regional Banking Index (KRX) as of 1/4/22
Slide 18: 4Q credit update
4M Bank of Hawai'i Corporation 4Q credit update
Slide 19: Loan portfolio excluding PPP
loan portfolio excluding PPP 19 40% commercial 73% real estate secured wtd avg LTV 57% 57% w/ BOH ≥ 10 yrs avg balance $0.7MM CRE C&I residential mortgage home equity auto leasing other consumer construction 60% consumer 84% real estate secured wtd avg LTV 55% 57% w/ BOH ≥ 10 yrs 80% of portfolio se
Slide 20: Credit quality
credit quality 20 * 82% of total criticized in CRE with 61% wtd avg LTV
Slide 21: Production quality commercial consumer
production quality 21 commercial consumer
Slide 22: Reserve trend
reserve trend 22 $ in millions allowance for credit losses note: balances and coverage ratio based on allowance for credit losses – loans and leases
Slide 23: Well positioned for current environment
well positioned for current environment 23 market leading brand awareness and penetration superior credit quality deposit betas fortified by granular, long-tenured deposit base controlled expenses solid capital
Slide 24: Q&A
4M Bank of Hawai'i Corporation Q&A