Bank of Hawaii Corporation (BOH)

BOH 
$59.62
*  
0.45
0.75%
Get BOH Alerts
*Delayed - data as of Sep. 19, 2014  -  Find a broker to begin trading BOH now
Exchange: NYSE
Industry: Finance
Community Rating:
View:    BOH After Hours
 
 
Symbol List Views
FlashQuotes InfoQuotes
Stock Details
Summary Quote Real-Time Quote After Hours Quote Pre-market Quote Historical Quote Option Chain
CHARTS
Basic Chart Interactive Chart
COMPANY NEWS
Company Headlines Press Releases Market Stream
STOCK ANALYSIS
Analyst Research Guru Analysis Stock Report Competitors Stock Consultant Stock Comparison
FUNDAMENTALS
Call Transcripts Annual Report Income Statement Revenue/EPS SEC Filings Short Interest Dividend History
HOLDINGS
Ownership Summary Institutional Holdings Insiders
(SEC Form 4)
 Save stocks for next time

Bank of Hawaii Corporation (BOH)

Q2 2011 Earnings Conference Call

July 25, 2011 14:00 ET

Executives

Cindy Wyrick – Director of Investor Relations

Peter Ho – Chairman, President and Chief Executive Officer

Kent Lucien – Vice Chairman and Chief Financial Officer

Mary Sellers – Vice Chairman and Chief Risk Officer

Analysts

Craig Siegenthaler – Credit Suisse

Brett Rabatin – Sterne Agee

Joe Morford – RBC Capital Markets

Aaron Deer – Sandler O'Neill & Partners

Joe Gladue – B. Riley

Erika Penala – Bank of America/Merrill Lynch

Jeff Rulis – D. A. Davidson

Jacque Chimera – KBW

Casey Haire – Jeffries

Bryce Rowe – Robert W. Baird

Presentation

Operator

Good day, ladies and gentlemen, and welcome to the Second Quarter 2011 Bank of Hawaii Earnings Conference Call. My name is (Fab), and I will be your operator for today. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the conference over to your host for today, Cindy Wyrick, the Director of Investor Relations. Please proceed.

Cindy Wyrick – Director of Investor Relations

Thank you, Fab, and good morning, everyone. Thank you for joining us today as we review our financial results for the second quarter of 2011. Joining me this morning is our Chairman, President and CEO, Peter Ho; Vice Chairman and Chief Financial Officer, Kent Lucien; and Vice Chairman and Chief Risk Officer, Mary Sellers.

Comments today will refer to the financial information included in the earnings announcement release this morning. 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.

Now, I would like to turn the call over to Peter Ho.

Peter Ho – Chairman, President and Chief Executive Officer

Thanks, Cindy. Good morning and aloha everyone. Thanks for joining us today. Bank of Hawaii had strong core operating results in the second quarter of 2011. We were pleased to see loan balances grew during the quarter. Deposit balances remained solid. Revenues continue to be challenged to the interest rate environment and our conservative investment and liquidity posture. Operational expenses remain well controlled. Asset quality remains stable and in line with the recovering Hawaii economy.

Our balance sheet remains quite strong with high levels of capital, liquidity and reserves. We increased the amount of shares we purchased during the quarter and our directors have authorized us an additional $120 million in repurchase activity.

Now I would like to ask Kent to review some of the factors affecting our financial performance this quarter and then Mary will comment on credit quality measures. Kent?

Kent Lucien – Vice Chairman and Chief Financial Officer

Thank you, Peter. Good morning. Net income for the second quarter was $35.1 million or $0.74 per share, compared to $42.4 million or $0.88 per share in the first quarter and $46.6 million, or $0.96 per share in the second quarter of 2010. Included in this quarter’s results was $9 million charge our legal settlement related to overdraft claims. There were no securities gains this quarter, compared to $6.1 million in the first quarter and $50 million in the second quarter of 2010.

Return on assets in the second quarter was 1.09% and return on equity was 13.9%. Year-to-date net income was $77.5 million, or $1.62 per share, compared to $99.3 million, or $2.05 per share in 2010. We realized $6.1 million in securities gains this year-to-date, compared to $35 million last year. Year-to-date the return on assets is 1.21% and return on equity 15.4%.

Our net interest margin in the second quarter was 3.16%, compared to 3.24% in the first quarter and 3.51% in the second quarter of 2010. Year-to-date the net interest margin is 3.20%, compared to 3.61% last year. The lower margin is due to lower interest rate environment in a large investment portfolio.

The credit provision in the second quarter was $3.6 million compared to $4.7 million in the first quarter and $15.9 million in the second quarter of 2010. The credit provision for the second quarter included net charge-offs of $6 million and a $2.4 million decrease to the allowance. The credit provision in the first quarter equaled net charge-offs and for the second quarter of 2010, included net charge-offs of $14.9 million and a $1 million increase to the allowance.

Our allowance for loan and lease losses at the end of the second quarter was $145 million or 2.7% of outstanding loan and leases. Non-performing assets were $34.2 million at the end of the second quarter, down $400,000 million from the end of the first quarter and down $9.1 million from the end of the second quarter of 2010. Included in non-performing loans are $24 million in residential mortgage loans as of June 30th.

Non-interest income for the second quarter was $49.5 million, compared to $53.9 million in the first quarter and $68.9 million in the second quarter of 2010. The decreases were primarily due to realized gains of the securities portfolio of $6.1 million in the first quarter and $15 million in the second quarter of 2010. Also contributing to the decrease compared with second quarter of 2010 were lower overdraft fees.

Read the rest of this transcript for free on seekingalpha.com