Bank of Hawaii Corp (BOH, Financial) 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 company’s outstanding common shares.
Despite the challenges faced, Bank of Hawaii Corp (BOH, Financial) continues to deliver solid financial results, demonstrating the company's resilience and commitment to its stakeholders.
