Bank of Hawaii Corporation (NYSE:BOH) Q3 2022 Earnings Conference Call October 24, 2022 2:00 PM ET

Company Participants

Jennifer Lam - EVP, Treasurer and Director of IR

Peter Ho - Chairman, President and CEO

Dean Shigemura - VC and CFO

Mary Sellers - VC and Chief Risk Officer

Conference Call Participants

Jeffrey Rulis - D.A. Davidson & Co.

Kelly Motta - Keefe, Bruyette & Woods, Inc.

Andrew Liesch - Piper Sandler & Co.

Laurie Hunsicker - Compass Point

Operator

Good day, and thank you for standing by. Welcome to the Bank of Hawaii Corporation Third Quarter 2022 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speakers’ presentation, there'll be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Jennifer Lam, Senior Executive President and Treasurer, Director of Investor Relations. Please go ahead.

Jennifer Lam

Good morning. Good afternoon, everyone. Thank you for joining us today.

On the call with me this morning is our Chairman, President and CEO, Peter Ho; our Chief Financial Officer, Dean Shigemura, and our Chief Risk Officer, Mary Sellers.

Before we get started, let me remind you that today's conference call will contain some forward-looking statements. And while we believe our assumptions are reasonable, there are a variety of reasons the actual results may differ materially from those projected.

During the call, we'll be referencing a slide presentation as well as the earnings release. A copy of the presentation and release are available on our website boh.com, under investor relations,

And now I'd like to turn the call over to Peter Ho.

Peter Ho

Thanks, Jennifer. Aloha, and good morning or good afternoon, everyone. Thanks for your continued interest in Bank of Hawaii.

Q3 was another solid quarter for the bank. Loan growth, net of PPP loans, registered another solid quarter, up 2.9% for the linked quarter and 12.7% year-over-year. Our growth was balanced across both consumer and commercial categories, and sourced predominantly from our core Hawaii and West Pacific markets. Production quality was strong.

Overall deposits were down 0.7% of the quarter on a linked basis resulting from lower public deposits. Consumer and commercial deposits were essentially flat in the quarter. Non-interest bearing demand deposits as a percentage of overall deposits remained steady at 35%. Deposit betas continued to perform quite well and our 64% loan-to-deposit ratio gives us funding and pricing flexibility.