Bank of Hawaii (BOH) Q4 2024 earnings summary

Executive summary

• Net income for Q4 2024 was $39.2 million, with diluted EPS of $0.85 and net interest margin expanding to 2.19%; full year 2024 net income was $150.0 million, down 12.4% from 2023.

• Credit quality remained strong, with net charge-offs at 0.10% annualized and non-performing assets at 0.14% of loans and leases.

• Average deposits and loans grew modestly, with deposits at $20.8 billion and loans at $14.1 billion.

• Capital levels improved, with Tier 1 capital ratio at 13.95% and total capital ratio at 15%, well above regulatory minimums.

• Board declared a $0.70 per share quarterly dividend for Q1 2025.

Financial highlights

• Net interest income for Q4 2024 was $120.2 million, up 2.2% sequentially and 3.8% year-over-year.

• Noninterest income for Q4 was $43.0 million, or $45.4 million adjusted for a $2.4 million Visa charge.

• Noninterest expense for Q4 was $107.9 million, up slightly due to higher medical costs; normalized full-year expenses rose 1.7% from 2023.

• Return on common equity for Q4 was 10.3%, or 10.9% adjusted; return on assets was 0.66%.

• Effective tax rate for Q4 was 24%.

Outlook and guidance

• Net interest income and margin expected to continue increasing due to asset repricing, slowing deposit remix, and lower Fed Funds rates.

• Noninterest income projected at $44–$45 million for Q1 2025, with growth expected through the year.

• Core expenses projected to rise 1–2% in 2025, with an additional 1% allocated to revenue-enhancing initiatives.

• Effective tax rate expected to remain at approximately 24% in 2025.

• Forward-looking statements caution that actual results may differ due to various risks and uncertainties.