Bank of Hawaii Corporation (NYSE:BOH) Q2 2022 Earnings Conference Call July 25, 2022 2:00 PM ET

Company Participants

Jennifer Lam - Executive Vice President, Treasurer and Director of Investor Relations

Peter Ho - Chairman, President and Chief Executive Officer

Dean Shigemura - Vice Chairman and Chief Financial Officer

Mary Sellers - Vice Chairman and Chief Risk Officer

Conference Call Participants

Andrew Liesch - Piper Sandler & Co.

Kelly Motta - Keefe, Bruyette & Woods, Inc.

Laurie Hunsicker - Compass Point Research & Trading, LLC

Jeffrey Rulis - D.A. Davidson & Co.

Operator

Good day, and thank you for standing by. Welcome to the Bank of Hawaii Corporation Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will 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, Jennifer Lam, Executive Vice President, Treasurer and Director of Investor Relations. You may begin.

Jennifer Lam

Thank you. 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 our 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, and good morning, everyone Bank of Hawaii produced solid performance during the second quarter of 2022. Core loans grew at a higher linked rate than the prior quarter for the fifth consecutive quarter. Deposit growth was on target. Our deposit base, which is 92% core consumer and commercial by customer type and 94% core demand and savings by product type, is well positioned for rising rates. We are clearly seeing the benefits of our strategic investments in both our consumer and commercial businesses through increased production. Margins expanded, efficiency increased and credit statistics improved in the quarter.

I'll spend the next few minutes sharing with you conditions in Hawaii are predominant market, and then turn the call over to Dean to cover the financials. Mary will then cover credit and risk. Wide economy continues to improve if tourism and overall business activity improve. Here you see unemployment at 4.3% a range just north of national levels. This compares favorably to the 7.7% differential that existed early in the pandemic between Hawaii and the U.S. Mainland from an unemployment standpoint.