Published on 24 Apr 2024 on Zacks via Yahoo Finance
Bank of Hawaii (BOH) Q1 Earnings Miss, Expenses Fall Y/Y
Bank of Hawaii Corporation BOH reported first-quarter 2024 earnings per share (EPS) of 87 cents, missing the Zacks Consensus Estimate of 92 cents. The bottom line compared unfavorably with $1.14 earned in the year-ago quarter.BOH's quarterly results were affected by a decline in net interest income (NII), along with a drop in loans and deposit balances. Nonetheless, an improvement in non-interest income and a decline in expenses acted as a tailwind.The company’s net income came in at $36.4 million, down 22.3% year over year. Our estimate for the metric was pegged at $37.1 million.
Revenues Decline, Expenses Fall
BOH’s total revenues fell 11.6% year over year to $156.2 million in the first quarter. The top line also missed the Zacks Consensus Estimate of $160.79 million.NII was $113.9 million, down 16.2% year over year, primarily due to increased funding costs, partially offset by higher earning asset yields. Net interest margin (NIM) decreased 36 basis points to 2.11%. Our estimate for NII and NIM was pinned at $117.8 million and 2.23%, respectively.Non-interest income came in at $42.3 million, up 3.8% year over year. This included $0.6 million worth of negative adjustment related to a change in Visa B conversion ratio. Adjusted for this item, the metric increased 2.4% year over year. Our estimate for the same was pinned at $42.5 million.Non-interest expenses decreased 5.4% to $105.9 million. It included seasonal payroll expenses of approximately $2.2 million and separation expenses of $0.5 million. Adjusted for these items, the metric for the first quarter of 2024 was $103.2 million, down 1.6% from adjusted noninterest expense recorded in the year-ago quarter. Our estimate for the metric was $107.3 million.The efficiency ratio was 67.76%, which increased from 63.34% recorded in the year-ago period. A rise in the efficiency ratio reflects lower profitability.As of Mar 31, 2024, total loans and leases balance decreased nearly 1% from the previous quarter’s end to $13.9 billion. Total deposits decreased 1.8% sequentially to $20.7 billion. Our estimates for total loans and leases, and total deposits were $13.7 billion and $20.7 billion, respectively.