Bank of Hawaii Reports 16% Decline in Net Income for Q3 2024, Total Assets and Deposits Show Slight Decrease

Bank of Hawaii Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a decrease in net income and various shifts in asset and liability management compared to the previous fiscal period.

For Q3 2024, the company recorded a net income of $40.4 million, down 16% from $47.9 million in Q3 2023. The decline was attributed to lower noninterest income and increased provisions for credit losses. Basic earnings per common share fell to $0.94 from $1.17 in the prior year. For the nine months ended September 30, 2024, net income totaled $110.8 million, a decrease of 37% from $140.8 million in the same period in 2023.

Total interest income for Q3 2024 increased to $220.6 million from $211.9 million a year earlier, while net interest income decreased slightly to $117.6 million from $120.9 million. The net interest margin improved to 2.18%, reflecting a 5 basis point increase year-over-year. Noninterest income also saw a decline, totaling $45.1 million, down 10% from the previous year.

As of September 30, 2024, total assets stood at $23.8 billion, a marginal decrease from $23.7 billion at the end of 2023. Total loans and leases decreased by 0.3% to $13.9 billion, primarily due to a reduction in consumer loans, which fell by 2%. In contrast, commercial loans increased by 3%, driven by higher demand for commercial mortgage loans.

The company’s total deposits decreased slightly to $21.0 billion from $21.1 billion at the end of 2023. The allowance for credit losses rose to $147.3 million, representing 1.06% of total loans and leases, up from 1.05% at the end of the previous year. Non-accrual loans increased significantly to $17.1 million, a 77% rise from December 31, 2023.

In terms of strategic developments, Bank of Hawaii issued 6.6 million depositary shares of 8.000% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, generating net proceeds of $160.6 million. The company also declared a quarterly cash dividend of $0.70 per share on common stock, payable on December 13, 2024.

Overall, the financial results reflect a challenging environment with increased credit loss provisions and a decline in net income, while the company continues to manage its asset and liability positions amid changing market conditions.