Bank Of Hawaii Corp (BOH)

Bank of Hawaii Corp. (BOH) stock dropped by 5.37% due to a disappointing earnings report for the fourth quarter of 2023. BOH reported earnings per share (EPS) of 72 cents, missing the Zacks Consensus Estimate of 89 cents. This marked a substantial drop from the $1.50 earned in the same quarter of the previous year.

• Adjusted EPS and Charges: It's worth noting that the reported EPS included an FDIC Special Assessment charge of 29 cents. Excluding this charge, the adjusted EPS would have been $1.01.
• Factors Affecting Quarterly Results: The quarterly results of BOH were impacted by a decrease in net interest income (NII) and an increase in provisions and expenses. However, there was some positive influence from improved non-interest income, as well as increased loan and deposit balances.
• Net Income and Annual Performance: BOH reported a net income of $30.4 million for the quarter, a significant drop of 50.4% compared to the previous year. In 2023, the company's earnings per share amounted to $4.14, reflecting a decline of 24.5% from the previous year. This figure missed the Zacks Consensus Estimate of $4.28. Net income (GAAP) for the year was $171.2 million, down 24.2%.
• Revenues and Expenses: BOH's total revenues in the fourth quarter fell by 13.1% year over year to $158.1 million, missing the Zacks Consensus Estimate of $161.03 million. For the full year 2023, total revenues were $674 million, a decrease of 3.5% from the previous year but surpassing the Zacks Consensus Estimate of $673.2 million.
• Net Interest Income and Non-Interest Income: NII for the quarter was $115.8 million, down 17.7% year over year due to higher funding costs, partially offset by higher earning asset yields. Non-interest income increased by 2.7% year over year, reaching $42.3 million.
• Expenses and Efficiency Ratio: Non-interest expenses increased by 12.9% to $116 million for the quarter, including the FDIC Special Assessment charge of $14.7 million. Adjusted core non-interest expenses amounted to $102.9 million. The efficiency ratio increased to 73.36% from 56.46% in the year-ago period, indicating lower profitability.