Bank of Hawaii Corporation (NYSE:BOH) Q1 2024 Earnings Conference Call April 22, 2024 2:00 PM ET

Company Participants

Cindy Wyrick - Director of IR
Peter Ho - Chairman, President & CEO
Bradley Shairson - Vice Chair & Deputy Risk Officer
Dean Shigemura - Vice Chair & CFO
Chang Park - IR Manager

Conference Call Participants

Jared Shaw - Barclays
Jeff Rulis - D.A. Davidson
Andrew Liesch - Piper Sandler
Kelly Motta - KBW

Operator

Good day, and thank you for standing by. Welcome to the Bank of Hawaii Corporation First Quarter 2024 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's 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 first speaker today, Cindy Wyrick, Director of Investor Relations. Please go ahead.

Cindy Wyrick

Thank you, Marvin. I'd like to welcome everyone and thank you for joining us today as we discuss the financial results for the first quarter of 2024. Joining me today is our CEO, Peter Ho; CFO, Dean Shigemura; our Chief Risk Officer, Brad Shairson; and our IR manager, Chang Park.

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 that the actual results may differ materially from those projected. During the call this morning, we'll be referencing a slide presentation as well as the earnings release, both of these are available on our website, boh.com, under the investor relations link.

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

Peter Ho

Thanks, Cindy. Good morning, or good afternoon, everyone. We appreciate your interest in Bank of Hawaii. Bank of Hawaii produced another solid financial performance for the first quarter of 2024. NIM, while down 2 basis points for the quarter showed significant directional improvement.

Fee income and operating expenses were steady for the quarter. Credit quality remains excellent. Loans and deposits were stable for the quarter. Liquidity and capital levels grew. I'll start off with some commentary on funding and then touch on broader market conditions here in the Islands. I'll then hand the call over to Brad to discuss credit. Dean will then share with you some more granular color on the financials.

Let me begin by touching a little bit on the deposit side. As you know -- as many of you I think know, we consider our deposit franchise to be our crown jewel, built methodically over our 127-year history, one relationship at a time. This base has served us extremely well as market rates and betas have moved up over the current rate cycle. As most of you know, Hawaii is maybe the most unique deposit market in the country with five locally headquartered banks holding 97% of the state's FDIC reported deposits.