Bank Of Hawaii Corporation · NYSE:BOH
Bank Of Hawaii — Q1 2025 Earnings Presentation
41 slides from Bank Of Hawaii's earnings presentation, Apr 21, 2025
Slide 1: First quarter 2025 financial report
Bank of Hawai‘i Corporation first quarter 2025 financial report April 21, 2025
Slide 2: Disclosure: forward-looking statements
disclosure 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, an
Slide 3: First quarter 2025 highlights
first quarter 2025 highlights • $0.97 diluted earnings per common share • $44.0 million net income • net interest margin expanded for the fourth consecutive quarter earnings highlights to 2.32% from 2.19% • average cost of total deposits decreased to 1.60% from 1.77% • 11.80% return on average commo
Slide 4: Leader in a unique deposit market
leader in a unique deposit market the leader in a unique deposit market with five local competitors holding 96% of the bank deposit market other 4.4% BOH ∆ in market share TBNK 34.1% 2.9% ∆ 1-yr ∆ 5-yr CPF 11.7% 1.9% FHB ASB 32.5% 14.4% 0.6% 0.6% 2024 0.3% 0.2% other other (0.1)%(0.1)% 4.1% BOH 4.5%
Slide 5: Stable deposit balances
stable deposit balances $ in billions average balances $20.3 $20.4 $20.5 $20.7 $20.5 $20.4 $20.5 $20.8 $20.7 $20.0 $13.5 $14.0 $14.7 $15.0 $14.0 $15.0 $15.0 $15.2 $15.5 $15.4 $6.9 $6.4 $6.0 $5.8 $5.7 $5.6 $5.4 $5.3 $5.3 $5.3 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 noninterest-bearing depos
Slide 6: Change in NIBD and low yield interest-bearing deposits
∆ NIBD and low yield interest- bearing deposits $ in billions ∆ 3-month rolling average balance of NIBD and low yield interest-bearing deposits $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $- $(0.10) $(0.20) $(0.30) $(0.40) note: low yield interest-bearing deposits include accounts yielding inter
Slide 7: Cost of funds: interest-bearing deposits
cost of funds interest-bearing deposits 3.05% 2.99% 2.91% 2.84% 2.73% 2.52% 2.44% 2.46% 2.39% 2.37% 2.30% 2.16% 2.11% 1.95% 1.59% 1.54% 1.09% 0.97% 0.69% 0.48% 0.30% 0.20% 0.13% 0.11% 0.07% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 BOH KRX median source: S&P Capital IQ; KBW Re
Slide 8: Cost of funds: total deposits
cost of funds total deposits 2.34% 2.26% 2.19% 2.19% 2.10% 1.85% 1.87% 1.81% 1.74% 1.77% 1.67% 1.60% 1.52% 1.40% 1.09% 1.08% 0.75% 0.66% 0.46% 0.31% 0.20% 0.12% 0.08% 0.07% 0.05% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 BOH KRX median source: S&P Capital IQ; KBW Regional Bank
Slide 9: Unemployment: experience and forecast
unemployment experience & forecast 20.2% 4.2% 3.4% 3.5% 3.5% 3.0% 3.0% 2.9% 2.2% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 2Q25 3Q25 4Q25 Jan-25 Feb-25 Mar-25 Hawai‘i unemployment Hawai‘i unemployment forecast national unemployment source for
Slide 10: Visitor arrivals
visitor arrivals monthly by market, indexed to January 2017 200 180 160 140 120 100 80 60 40 20 - total domestic Japan other source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT) 10
Slide 11: Revenue per available room
revenue per available room revenue per available room (RevPAR) $340 $310 $280 $250 $220 $190 $160 $130 $100 $70 $40 $10 source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT) 11
Slide 12: Stable real estate prices
stable real estate prices Oahu market indicators – YTD 2025 as of March 2025 single family homes condominiums YTD-25 YTD-24 Δ YTD-24 YTD-25 YTD-24 Δ YTD-24 7.5% 1.0% median sales $1,150 $1,070 $510 $505 price (000s) 0.4% closed sales 569 593 974 970 -4.0% 11 days median days 20 29 43 32 on market 9
Slide 13: Credit performance
AN Bank of Hawai'i Corporation | credit performance
Slide 14: Lending philosophy
lending philosophy we lend in our core markets to long-standing relationships Hawai'i 93% U.S. West mainland Pacific 3% 4% note: as of March 31, 2025 14
Slide 15: Consumer portfolio
consumer portfolio 56% of total loans wtd % total % total avg home equity asset type consumer loans WALTV FICO $2.1 residential mortgage 58% 33% 49% 804 home equity 27% 15% 46% 789 $7.9B residential consumer real estate secured 86% 48% 48% 799 mortgage $4.6 automobile 9% 5% n/a 731 automobile $0.7 o
Slide 16: Commercial portfolio
commercial portfolio 44% of total loans CRE $4.0 % total % total asset type comml loans WALTV residential commercial real estate 65% 29% 55% mortgage $6.2B construction 6% 3% 56% commercial real estate secured 71% 31% 55% commercial & industrial 27% 12% n/a leasing 1% 1% n/a construction C&I $0.4 ho
Slide 17: Stable real estate market
stable real estate market Oahu market vacancies and inventory vacancy inventory (sq ft) 4Q24 4Q23 10 yr avg 10 yr CAGR industrial 0.93% 0.64% 1.63% 0.63% office 12.73% 13.45% 12.42% -1.01% retail 5.71% 6.02% 6.08% 0.72% multi-family 3.88% 4.03% 4.77% 0.73% note: 10-year average vacancy and 10-yr CAG
Slide 18: Commercial real estate (CRE)
commercial real estate (CRE) 29% of total loans avg. lodging exposure 5% asset type WALTV ($MMs) retail 5% multi-family 56% 3.3 residential industrial mortgage 55% 2.5 industrial 5% office lodging 53% 14.7 3% retail 54% 4.4 office 56% 1.8 other multi-family 4% other 54% 3.7 7% home total CRE equity
Slide 19: CRE scheduled maturities
CRE scheduled maturities modest near-term maturities 1,800 40.5% 1,600 1,400 1,200 1,000 $millions 800 600 13.8% 12.6% 12.6% 400 8.7% 7.5% 4.4% 200 0 2025 2026 2027 2028 2029 2030 2031+ 19
Slide 20: CRE loan balances by LTV
CRE loan balances by LTV LTV > 80% - $75MM, 1.9% of CRE 62.1% 2,500 2,000 1,500 $millions 24.5% 1,000 11.5% 500 1.8% 0.0% 0.04% 0 ≤ 60% > 60% to 70% > 70% to 80% > 80% to 85% > 85% to 90% > 90% 20
Slide 21: Commercial & industrial
commercial & industrial 12% of total loans avg. exposure asset type % leveraged ($MMs) auto dealers 1.0% AOAO 0% 1.8 lodging 0.9% RE investors 0% 1.2 real estate investors renewable 1.8% energy 0.8% auto dealers residential 18% 5.0 healthcare mortgage lodging 19% 5.2 0.6% educational svcs renewable
Slide 22: Credit quality
credit quality net charge-offs non-performing assets 0.4 0% 0.3 5% 0.3 0% 0.2 5% $0 0.2 0% 0.13% 0.14% 0.10% 0.12% $0 0.1 5% $0 0.07% 0.1 0% 0.09% $0 0.0 5% $0 0.0 0% $0 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 $0 NCOs/average loans NPAs/period-end loans plus OREO $0 $0 1.4 0% delinquencies criticized 1.2 0% 2
Slide 23: Financial update
AN Bank of Hawai'i Corporation | financial update
Slide 24: NII and NIM trends
NII and NIM trends $ in millions increasing NII and NIM $142 $141 2.60% 2.60% $136 $133 2.47% 2.47% $125 $126 $124 $121 $120 2.34% $118 2.32% $116 $114 $115 2.22% 2.18% 2.19% 2.15% 2.13% 2.13% 2.11% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 NII NIM 24
Slide 25: Cashflow repricing
cashflow repricing $ in millions total quarterly impact to NII from cashflows repricing: +$3.7 million maturities/prepayments maturities/prepayments reinvestment opportunities $600 8.0% $553 7.0% 7.0% $500 6.4% 6.1% 6.0% 5.5% $400 5.0% 4.4% 4.5% $295 $300 4.0% 3.7% 3.4% 3.0% 2.6% 2.6% $200 $164 2.2%
Slide 26: Deposit mix shift and repricing
deposit mix shift and repricing $ in millions quarterly NII impact from deposit mix shift and repricing in 1Q25: $(0.3) million QoQ change in average NIBD and low yield interest-bearing deposit balances 1Q23 vs 4Q22 2Q23 vs 1Q23 3Q23 vs 2Q23 4Q23 vs 3Q23 1Q24 vs 4Q23 2Q24 vs 1Q24 3Q24 vs 2Q24 4Q24 v
Slide 27: Decrease in cost of deposits
decrease in cost of deposits decrease in total deposit and interest-bearing deposit costs downward beta 5.43% 5.50% 5.50% 5.50% 5.43% 5.16% 4.82% 81% 4.69% 2.52% 2.46% 76% 4.50% 2.39% 2.37% 2.30% 2.16% 3.82% 1.87% 1.95% 1.81% 1.77% 1.74% 1.67% 1.60% 53% 1.54% 1.40% 2.35% 1.08% 1.09% 28% 0.75% 25% 0.
Slide 28: Time deposits
time deposits time deposit rates continue to decrease time deposit rates time deposit maturity schedule 5.50% 5.50% 5.43% 50% 3.74% 3.61% 5.00% 4.82% 45% 4.50% % of total time deposits scheduled to mature 4.18% 4.20% 4.17% 40% 4.02% 4.00% 3.67% 35% 30% 3.00% 25% 45% 20% 2.00% 15% 29% 1.00% 10% 5% 0.
Slide 29: Optimizing balance sheet
optimizing balance sheet earning asset composition 0.4% 1% 5% 100% 2% 3% 3% 3% 4% 2% 3% 1% 9% 9% 9% 13% 13% 14% 12% 26% 27% 80% 27% 28% 32% 29% 29% 33% 29% 30% 60% 40% 73% 72% 67% 61% 55% 57% 56% 55% 54% 53% 20% 0% 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 fi
Slide 30: Rate sensitive earning assets and interest-bearing deposits
rate sensitive earning assets and interest-bearing deposits $ in billions balance sheet well-positioned for a range of rate outcomes rate sensitive earning assets rate sensitive interest-bearing deposits $7.4B $10.2B $5.9 $6.0 $6.0 $5.0 $5.0 $4.0 $4.0 $3.4 $3.0 $3.0 $3.0 $2.0 $2.0 $2.0 $1.3 $1.2 $1.
Slide 31: Noninterest income and expense
noninterest income and expense $ in millions increase in noninterest income and continued discipline in expense management reported noninterest income reported noninterest expense $50 $120 $107.9 $110.5 $105.9 $43.0 $44.1 $42.3 $100 $40 $80 $30 $60 $20 $40 $10 $20 $0 $0 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25
Slide 32: Financial summary
financial summary $ in millions, except per share amounts 1Q 2025 4Q 2024 1Q 2024 ∆ 4Q 2024 ∆ 1Q 2024 net interest income $ 125.8 $ 120.2 $ 113.9 $ 5.6 $ 11.9 noninterest income 44.1 43.0 42.3 1.0 1.8 total revenue 169.9 163.2 156.2 6.6 13.6 noninterest expense 110.5 107.9 105.9 2.5 4.6 operating in
Slide 33: Capital
capital strong capital 15.00% 14.97% 13.95% 13.93% 13.81% 13.6% 77.3% 1 12.74% 5.00% 4.97% 11.50% 11.59% 11.58% 3.81% 5.95% 5.93% 4.74% 60.3% 60.0% 5.00% 5.09% 5.08% 8.31% 8.36% 7.62% 3.31% 3.36% 2.62% 10.00% 10.00% 10.00% 8.00% 8.00% 8.00% 6.50% 6.50% 6.50% 5.00% 5.00% 5.00% 0.00% 0.00% 0.00% 1Q24
Slide 34: Takeaways
takeaways ✔ NII and NIM increased for the fourth consecutive quarter ✔ exceptional credit quality and nominal direct tariff exposure ✔ strong liquidity and risk-based capital 34
Slide 35: Q&A
AN Bank of Hawai'i Corporation | Q&A
Slide 36: Appendix
AN Bank of Hawai'i Corporation | appendix
Slide 37: Readily available liquidity
readily available liquidity Bank of Hawai‘i carries substantial liquidity lines and equivalents for both day-to-day operational and liquidity backstop purposes $10.3B cash securities available FHLB $8.0B uninsured/ uncollateralized FRB deposits note: as of March 31, 2025, cash includes fed funds sol
Slide 38: Insured/collateralized deposits
insured/collateralized deposits uninsured/ uncollateralized 38% insured 53% uninsured/ collateralized 9% note: as of March 31, 2025, numbers may not add up due to rounding 38
Slide 39: CRE supply constraints
CRE supply constraints Oahu market inventory 10-yr CAGR: 0.6% 10-yr CAGR: -1.0% 10-yr CAGR: 0.7% 10-yr CAGR: 0.7% note: 10-yr CAGR for inventory are based on year-end 2014 through 2024 39 source: Colliers (industrial, office, retail) and CoStar (multi-family)
Slide 40: CRE office
CRE office 3% of total loans scheduled maturity 300 LTV distribution 250 200 $ millions LTV > 60% to 70% 150 35.2% 33.4% 31% 100 10.8% 11.2% 50 2.5% 4.8% 2.2% LTV > 70% to - $378MM 80% 11% 2025 2026 2027 2028 2029 2030 2031+ highlights LTV > 80% 6% LTV ≤ 60% • 56% wtd avg LTV 52% • $1.8MM average ex
Slide 41: CRE multi-family
CRE multi-family 7% of total loans scheduled maturity 700 63.8% LTV distribution 600 500 $ millions LTV > 60% to 70% 400 32% 300 200 11.7% 8.2% 100 5.3% 5.4% 2.7% 3.0% $1.0B - 2025 2026 2027 2028 2029 2030 2031+ LTV > 70% to 80% 15% highlights LTV ≤ 60% 53% • 56% wtd avg LTV • $3.3MM average exposur