Q2 2024 Bank of Hawaii Corporation Earnings Call

July 22, 2024

Good day and thank you for standing by. Welcome to Bank of Hawaii Corporation's second quarter 2024 Innings Conference Call. At this time all participants are on a listen-only mode.

Unknown Executive: for an ace conference call. At this time, I'll be just going to listen lonely mode.

Operator: At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 while on your telephone. You will then hear an automatic message advising that your hand is raised. Please note that today's conference may be recorded. I will now hand the conference over to your speaker host, Chang Park, Senior Vice President and Investor Relations Director. Please go ahead.

Unknown Executive: After this speech's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automatic message advising your hand is raised. Please note that today's conference may be reported.

After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automatic message advising your hand is raised.

Chang Park: I will now hand a conference over to you, Speaker Ho's, Chang Park, Senior Vice President and Best Relations Director. Please go ahead.

Please note that today's conference may be recorded. I will now hand the conference over to your speaker host, Chang Park, Senior Vice President and Investor Relations Director. Please go ahead.

Peter Ho: Thank you. Good morning and good afternoon. Thank you for joining us today as we discuss the financial results for the second quarter of 2024.

Chang Park: Thank you. Good morning and good afternoon. Thank you for joining us today as we discuss the financial results for the second quarter of 2020. Joining me today are our Chairman and CEO, Peter Ho, CFO, Dean Shigemura, and Chief Risk Officer, Brad Sharer. 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 actual results may differ materially from those projected.

Chang Park: Thank you. Good morning and good afternoon. Thank you for joining us today as we discuss the financial results for the second quarter of 2024.

Peter Ho: Joining me today is our Chairman and CEO, Peter Ho, CFO, Dean Shigemura, and Chief Risk Officer, Brad Shairson. Before we get started, let me remind you that today's conference call will contain some poor-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.

Speaker Change: Joining me today is our Chairman and CEO Peter Ho, CFO Dean Shigemura, and Chief Risk Officer Brad Sherrison. Before we get started, let me remind you that today's conference call will contain some forward-looking statements.

Chang Park: And while we believe our assumptions are reasonable, there are a variety of reasons that the actual results may differ materially from those projected.

Chang Park: 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, DOH.com, under Investor Relations. Now, I would like to turn the call over to Peter.

Unknown Executive: Both of these are available on our website, poh.com, on the Investor Relations link.

Peter Ho: And now, I would like to turn the call over to Peter. Thanks, Chang. Hello, everyone. We appreciate your interest in Bank of Hawaii. Before we get started, I'd like to welcome Senior Executive Vice President Brad Satinberg to the team and to the call. Brad is our new Deputy Chief Financial Officer and joins us from Luther Burbank Bank, where he held the role of CFO. Brad will be working closely with Dean over the coming months.

Peter S. Ho: Thanks, Chang. Aloha, everyone. We appreciate your interest in Bank of Hawaii. Before we get started, I'd like to welcome Senior Executive Vice President Brad Sattenberg to the team and to the call. Brad is our new Deputy Chief Financial Officer and joins us from Luther Burbank Bank, where he held the role of CFO. Brad will be working closely with Dean over the coming months. Welcome, Brad. I'd also like to welcome you to the call Jim Polk.

Chang Park: And now I would like to turn the call over to Peter.

Peter: Thanks, Chang. Aloha, everyone. We appreciate your interest in Bank of Hawaii.

Speaker Change: Before we get started, I'd like to welcome Senior Executive Vice President Brad Sattenberg to the team and to the call. Brad is our new Deputy Chief Financial Officer and joins us from Luther Burbank Bank, where he held the role of CFO . Brad will be working closely with Dean over the coming months. Welcome, Brad.

Peter Ho: Welcome, Brad. I'd also like to welcome to the call Jim Polk. Jim is a 25-year member of the Bank of Hawaii team, most recently as Vice Chair and Chief Banking Officer. This past Friday, Jim was promoted to President and Chief Banking Officer. Jim will continue with his responsibilities for commercial banking and wealth management and now adds our retail banking operation as well. I will continue as Chairman and CEO, and Jim will continue to report directly to me.

Peter S. Ho: Jim is a 25-year member of the Bank of Hawaii team, most recently as Vice Chair and Chief Banking Officer. This past Friday, Jim was promoted to President and Chief Banking Officer. Jim will continue with his responsibilities for commercial banking and wealth management and now adds our retail banking operation as well. I will continue as Chairman and CEO, and Jim will continue to report directly to me.

Speaker Change: I'd also like to welcome to the call Jim Polk. Jim is a 25-year member of the Bank of Hawaii team, most recently as Vice Chair and Chief Banking Officer. This past Friday, Jim was promoted to President and Chief Banking Officer.

Speaker Change: Jim will continue with his responsibilities for commercial banking and wealth management and now adds our retail banking operation as well. I will continue as chairman and CEO and Jim will continue to report directly to me.

Peter Ho: Backfoy produced yet another solid financial performance for the second quarter of 2024. As was anticipated, that interest margin and that interest income advanced in the quarter for the first time in a number of quarters. Average loan and deposit levels were stable, albeit off nominally in the quarter. Credit quality remained and remained pristine. Capital levels were aided significantly by our successful June preferred rates.

Peter S. Ho: Bank of Hawaii produced yet another solid financial performance for the second quarter of 2024, as it was anticipated that interest margin and net interest income advanced in the quarter for the first time in a number of quarters. Average loan and deposit levels were stable, albeit off nominally in the quarter. Credit quality remained and remains pristine.

Speaker Change: Bank of Hawaii produced yet another solid financial performance for the second quarter of 2024. As was anticipated, net interest margin and net interest income advanced in the quarter for the first time in a number of quarters.

Speaker Change: Average loan and deposit levels were stable, albeit off nominally in the quarter.

Peter S. Ho: Capital levels were aided significantly by our successful June preferred rate. I'll start off with some commentary on the balance sheet and then touch on broader market conditions in Hawaii. I'll then hand the call over to Brad Sheriston for some brief but positive credit comments, and Dean will then share with you some more granular color on the financials. As I mentioned, deposits and loan levels were stable in the quarter. Looking forward, we see evidence of modest improvement in loan growth for the second half of 2024.

Speaker Change: Credit quality remained and remains pristine. Capital levels were aided significantly by our successful June preferred rates.

Peter Ho: I'll start off with some commentary on the balance sheet and then touch on broader market conditions in Hawaii.

Speaker Change: I'll start off with some commentary on the balance sheet and then touch on broader market conditions in Hawaii. I'll then hand the call over to Brad Sherrison for some brief but positive credit comments.

Peter Ho: I'll then hand the call over to Brad Sharerson for some brief but positive credit comments, and Dean will then share with you some more granular color on the financials. As I mentioned, deposits of loan levels were stable in the quarter. Looking forward, we see evidence of modest improvement in loan growth for the second half of 2024. Deposit levels look to be relatively flat as we focus on taking a disciplined approach to pricing levels and prepare for a potential pivot to a lower rate environment. Capital levels advanced meaningfully as a result of last month's $165 million preferred capital raise, which was well oversubscribed with over 90% institutional interest.

Speaker Change: and Dean will then share with you some more granular color on the financials.

Speaker Change: As I mentioned, deposits and loan levels were stable in the quarter. Looking forward, we see evidence of modest improvement in loan growth for the second half of 2024.

Peter S. Ho: Deposit levels look to be relatively flat as we focus on taking a disciplined approach to pricing levels and prepare for a potential pivot to a lower rate environment. However, capital levels advanced meaningfully as a result of last month's $165 million preferred capital raise, which is well oversubscribed with over 90% institutional interest.

Speaker Change: Deposit levels look to be relatively flat as we focus on taking a disciplined approach to pricing levels and prepare for a potential pivot to a lower rate environment.

Speaker Change: Capital levels advanced meaningfully as a result of last month's $165 million preferred capital raise, which was well oversubscribed with over 90% institutional interest.

Peter Ho: Congress. Turning to deposits, we continue to use our brand and market position in what is truly unique, a unique deposit market, to maintain a consistent and stable deposit base at substantially lower cost than our national peers. Further, not interest-bearing deposits continue to stabilize, with average, not interest-bearing deposits in May, June, and now into July, flat at $5.3 billion. The Hawaiian economy, from a jobs perspective, continues to outperform the broader market, and your hero forecast continues stability. The visitor market continues to be impacted by the tragic behind the fires. Visitor spending and visitor arrivals were down 4 plus percent in both categories in May, year over year, but are up 6% and 4% in each category.

Peter S. Ho: Turning to deposits, we continue to use our brand and market position in what is truly unique, a unique deposit market, to maintain a consistent and stable deposit base at substantially lower costs than our national peer system. Further, non-interest-bearing deposits continue to stabilize, with average non-interest-bearing deposits in May, June, and now into July flat at $5.3 billion. The Hawaiian economy, from a jobs perspective, continues to outperform the broader market, and UHERO forecasts continued stability.

Speaker Change: Turning to deposits, we continue to use our brand and market position in what is truly a unique deposit market to maintain a consistent and stable deposit base at substantially lower costs than our national peer set.

Speaker Change: Further, non-interest bearing deposits continue to stabilize with average non-interest bearing deposits in May, June , and now into July flat at $5.3 billion.

Speaker Change: The Hawaiian economy, from a jobs perspective, continues to outperform the broader market, and your hero forecasts continued stability.

Peter S. Ho: The visitor market continues to be impacted by the tragic Lahaina fire. Visitor spending and visitor arrivals were down four plus percent in both categories in May year over year, but are up 6% and 4% in each category ex Maui. The Japanese market, which, as you know, has been slow to recover, was up 26% on spend in May and up 35% on arrivals in May but still down well over 50% from its pre-pandemic level.

Speaker Change: The visitor market continues to be impacted by the tragic Wahina fires.

Speaker Change: Visitor spending and visitor arrivals were down four plus percent in both categories in May year-over-year but are up six percent and four percent in each category ex-Maui.

Peter Ho: The Japan market, which, as you know, has been slowly recovered, was up 26% on spend in May, and up 35% on arrivals in May, but still down well over 50% from pre-bendemic levels.

Speaker Change: The Japan market, which as you know has been slow to recover, was up 26% on spend in May and up 35% on arrivals in May, but still down well over 50% from pre-pandemic levels.

Peter Ho: As you can see, hotels can change, perform steadily, or rep are perspective. Residential real estate on Oahu remained steady, with median sale prices for both single-family homes and condominiums up 3.3% and 2.0% in the first half of the year from a year ago. Median days on market remained below a month for both single-family homes and condominiums; inventory conditions remained tight.

Peter S. Ho: As you can see, hotels continue to perform steadily from a REBPAR perspective. Residential real estate in Oahu remains steady, with median sale prices for both single-family homes and condominiums up 3.3% and 2.0% in the first half of the year from a year ago. However, median days on market remain below a month for both single-family homes and condominiums.

Speaker Change: As you can see, hotels continue to perform steadily from a REBPAR perspective.

Speaker Change: Residential real estate in Oahu remains steady, with median sale prices for both single-family homes and condominiums up 3.3% and 2.0% in the first half of the year from a year ago.

Bradley Shairson: Inventory conditions remain tight. And now, let me turn the call over to Brad Scherz. Brad. Thanks, Peter.

Speaker Change: Median days on market remain below a month for both single-family homes and condominiums. Inventory conditions remain tight.

Bradley Shairson: And now let me turn the call over to Brad Sherson. Brad. Thanks, Peter. The Bank of Hawaii takes great pride in serving our community. And this aligns to our longstanding credit philosophy, which has been to lend primarily in our core markets, where our expertise enables us to make sound credit decisions. Additionally, the majority of our loan book is to longstanding relationships, where about 60% of our clients on both the commercial and consumer side have been with us for over 10 years. This combination is greatly contributed to our strong credit performance for many years, and it has resulted in a loan portfolio that is 92% Hawaii, 5% Western Pacific, and just 3% mainland, where we support our clients that do business in both Hawaii and on the mainland.

Bradley Shairson: The Bank of Hawaii takes great pride in serving our community, and this aligns with our long-standing credit philosophy, which has been the lens primarily in our core markets, where our expertise enables us to make sound credit decisions. Additionally, the majority of our loan book is to long-standing relationships, where about 60% of our clients on both the commercial and consumer side have been with us for over 10 years. This combination has greatly contributed to our strong credit performance for many years, and it has resulted in a loan portfolio that is 92% Hawaii, 5% Western Pacific, and just 3% mainland, where we support our clients that do business in both Hawaii and on the mainland. As I walk through our current state, you'll note there has been very little change from last quarter.

Speaker Change: And now, let me turn the call over to Brad Scherzer. Brad?

Brad Shurson: Thanks, Peter. The Bank of Hawaii takes great pride in serving our community, and this aligns to our long-standing credit philosophy, which has been the lens primarily in our core markets where our expertise enables us to make sound credit decisions.

Brad Shurson: Additionally, the majority of our loan book is to long-standing relationships where about 60% of our clients on both the commercial and consumer side have been with us for over 10 years.

Brad Shurson: This combination has greatly contributed to our strong credit performance for many years and has resulted in a loan portfolio that is 92% Hawaii, 5% Western Pacific, and just 3% Mainland, where we support our clients that do business in both Hawaii and on the mainland.

Bradley Shairson: As I walk through our current state, you'll note there has been very little change from last quarter. The lending philosophy I just mentioned is reflected in our loan growth, which has been steady and organic. From 2019 to this past quarter, we averaged about 6% loan growth. On the consumer side, which represents 58% of our total loans, or 8 billion dollars, we are predominantly lending on a secured basis against real estate. 85% of our portfolio is comprised of residential mortgage or home equity, with a weighted average LTV of just 48%, and a combined weighted average FICO score of 800.

Bradley Shairson: The lending philosophy I just mentioned is reflected in our loan growth, which has been steady and organic. From 2019 to this past quarter, we averaged about 6% loan growth. On the consumer side, which represents 58% of our total loans or $8 billion, we are predominantly lending on a secured basis against real estate. 85% of our portfolio is comprised of residential mortgages or home equity with a weighted average LTV of just 48% and a combined weighted average FICO score of 800.

Brad Shurson: As I walk through our current state, you'll note there has been very little change from last quarter.

Brad Shurson: The lending philosophy I just mentioned is reflected in our loan growth, which has been steady and organic from 2019 to this past quarter We averaged about 6% loan growth

Brad Shurson: On the consumer side, which represents 58% of our total loans, or $8 billion,

Brad Shurson: We are predominantly lending on a secured basis against real estate. 85% of our portfolio is comprised of residential mortgage or home equity, with a weighted average LTV of just 48%, and a combined weighted average FICO score of 800.

Bradley Shairson: The remaining 15% of the portfolio is a combination of auto and personal loans, where our average FICO scores are 734 and 759, respectively. Moving on to commercial, our portfolio size is 5.8 billion dollars, which is 42% of our total loan book. The largest share of commercial is commercial real estate, with 3.7 billion assets, which equates to 27% of total loans. This book is well diverse, wide across industries, and there is a weighted average LTV of only 55%.

Brad Shurson: The remaining 15% of the portfolio is a combination of auto and personal loans where our average FICO scores are 734 and 759 respectively.

Bradley Shairson: The remaining 15% of the portfolio is a combination of auto and personal loans, where our average FICO scores are 734 and 759, respectively. Moving on to commercial, our portfolio size is $5.8 billion, which is 42% of our total loan book. The largest share of commercial real estate is commercial real estate with $3.7 billion in assets, which equates to 27% of total loans. This book is well diversified across industries and carries a weighted average LTV of only 55%. Given that I covered CRE in great depth last quarter, I'll just take a few minutes to cover key highlights of our portfolio today, starting with the stability of our real estate market in Oahu.

Brad Shurson: Moving on to commercial, our portfolio size is $5.8 billion, which is 42% of our total loan book.

Brad Shurson: The largest share of commercial is commercial real estate with 3.7 billion in assets, which equates to 27% of total loans. This book is well diversified across industries and carries a weighted average LTV of only 55%.

Bradley Shairson: Given that I covered CRE in Great Death's last quarter, I'll just take a few minutes to cover key highlights of our portfolio today. Starting with stability of our real estate market in Oahu, vacancy rates remain stable, reflective of the Hawaiian economy and history of limited supply. Industrial vacancy has continued to hover around its historic low, currently just 0.76 percent versus its 10-year average of 1.75. And at 13.56 percent, office vacancy is slightly more than 1 percent higher than its 10-year average. Office conversions and long-term trend of office space reduction will continue to temper vacancy rates here.

Brad Shurson: Given that I covered CRE in great depth last quarter, I'll just take a few minutes to cover key highlights of our portfolio today.

Bradley Shairson: Vacancy rates remain stable, reflective of the Hawaiian economy and history of limited supply. Industrial vacancy has continued to hover around its historic low, currently just 0.76 percent versus its 10-year average of 1.75. And at 13.56%, office vacancy is slightly more than 1% higher than its 10-year average. Office conversions and the long-term trend of office space reduction will continue to temper vacancy rates here. Retail and multifamily vacancies remain on par with historical

Brad Shurson: Starting with the stability of our real estate market in Oahu.

Brad Shurson: Vacancy rates remain stable, reflective of the Hawaiian economy and history of limited supply. Industrial vacancy has continued to hover around its historic low, currently just 0.76 percent versus a 10-year average of 1.75.

Brad Shurson: And at 13.56%, office vacancy is slightly more than 1% higher than its 10-year average. Office conversions and long-term trend of office space reduction will continue to temper vacancy rates here.

Bradley Shairson: Retail and multi-family vacancies remain on par with historical averages. And as I covered, last quarter, inventory remains constrained with 10-year growth rates around 0 percent for all major property types, with office space even coming down about 10 percent over the past 10 years. Our CRE is well-diversified amongst property types, with no sector being greater than 7 percent of total loans. Our conservative underwriting has been applied consistently, with all weighted average LTVs between 50 and 60 percent. Overall, it's a diverse portfolio with low average loan sizes. And our scheduled maturities have no maturity role, but only 4.6 percent of loans due to mature this year and 10 percent next year, with more than half of our loans maturing in 2030 or later.

Bradley Shairson: And, as I covered last quarter, inventory remains constrained with 10-year growth rates around 0% for all major property types, with office space even coming down about 10% over the past 10 years. Our CRE is well diversified among property types, with no sector being greater than 7% of total. Our conservative underwriting has been applied consistently, with all weighted average LTVs between 50 and 60 percent. Overall, it's a diverse portfolio with low average loan sizes.

Brad Shurson: Retail and multi-family vacancies remain on par with historical averages, and as I covered last quarter, inventory remains constrained with 10-year growth rates around 0% for all major property types, with office space even coming down about 10% over the past 10 years.

Speaker Change: Our CRE is well diversified amongst property types with no sector being greater than 7% of total loans. Our conservative underwriting has been applied consistently with all weighted average LTVs between 50 and 60%. Overall, it's a diverse portfolio with low average loan sizes.

Bradley Shairson: And our scheduled maturities have no maturity wall, but only 4.6% of loans are due to mature this year and 10% next year, with more than half of our loans maturing in 2030 or later. Looking at the distribution of LTVs, the tail risk in our CRE portfolio for any loans with greater than 80% LTV totals $31 million, which is under 1%. And if we move that metric up to 85%, our CRE portfolio has less than $4 million of exposure.

Speaker Change: And our scheduled maturities have no maturity wall, with only 4.6% of loans due to mature this year and 10% next year with more than half of our loans maturing in 2030 or later.

Bradley Shairson: Looking at the distribution of LTVs, the tail risk in our CRE portfolio for any loans with greater than 80 percent LTV totals 31 million dollars, which is under 1 percent. And if we move that metric up to 85 percent, our CRE portfolio has less than $4 million of exposure. Looking at our credit metrics overall this past quarter compared to linked quarter, metrics remain quite stable and affect quality remains strong. Net charge drops for 3.4 million at 10 basis points annualized of three basis points from Q1 and six basis points from a year ago. Non-performing assets have remained stable, increasing slightly to 11 basis points, roughly $15 million.

Speaker Change: Looking at the distribution of LTVs, the tail risk in our CRE portfolio for any loans with greater than 80% LTV totals $31 million, which is under 1%. And if we move that metric up to 85%, our CRE portfolio has less than $4 million of exposure.

Bradley Shairson: Looking at our credit metrics overall this past quarter, compared to the linked quarter, metrics remain quite stable, and asset quality remains strong. Net charge-offs for $3.4 million at 10 basis points annualized, up three basis points from Q1 and six basis points from a year ago. Non-performing assets have remained stable, increasing slightly to 11 basis points, roughly $15 million. And delinquencies have also been stable, ticking down slightly to 29 basis points this quarter.

Speaker Change: Looking at our credit metrics overall this past quarter, compared to linked quarter, metrics remain quite stable and asset quality remains strong. Net charge offs were 3.4 million at 10 basis points annualized, up three basis points from Q1 and six basis points from a year ago.

Speaker Change: Non-performing assets have remained stable, increasing slightly to 11 basis points, roughly $15 million.

Bradley Shairson: And the link quantities have also been stable, ticking down slightly to 29 basis points as quarter. Criticized assets remain low at 2.23 percent of total loans, with 74 percent real estate secured, with a 56 percent LTV. As an update on the allowance for credit losses on loans to leases, the ACL ended the quarter at $147.5 million, down to $200,000 for the link period and up $2.1 million year over year. The ratio of our ACL damage was 1.07 percent, and that's on change from prior quarter and up 3 basis points year over year.

Bradley Shairson: Criticized assets remain low at 2.23% of total loans, with 74% of real estate secured with a 56% LTV. As an update on the allowance for credit losses on loans and leases, the ACL ended the quarter at $147.5 million, down $200,000 for the length of the term and up $2.1 million year-over-year. The ratio of our ACL to outstandings was 1.07%, and that's unchanged from the prior quarter and up three basis points year-over-year. I'll now turn this over to Dean for an update on our financials.

Speaker Change: Delinquencies have also been stable, ticking down slightly to 29 basis points this quarter. Criticized assets remain low at 2.23% of total loans, with 74% real estate secured with a 56% LTV.

Speaker Change: As an update on the allowance for credit losses on loans and leases, the ACL ended the quarter at $147.5 million, down $200,000 for the length period, and up $2.1 million year-over-year.

Dean: The ratio of our ACL to Outstandings was 1.07%, and that's unchanged from prior quarter, and up three basis points year over year. I'll now turn this over to Dean for an update on our financials.

Dean Y. Shigemura: Net interest income was $114.8 million in the second quarter, an increase of $0.9 million linked quarter, and the net interest margin increased by five basis points linked quarter to 2.15%. Repricing from cash flows contributed $4.6 million of additional net interest income linked quarter will continue deposit mix shift and repricing as well as a smaller balance sheet from lower deposit balances subtracted $4 million. In addition, net interest income was positively impacted by an interest recovery, which increased net interest income by approximately $300,000 on a linked quarter basis.

Dean Shigemura: I'll now turn this over to Dean for an update on our financials. Thanks, Brad. Net interest income was $114.8 million in the second quarter. It increased a point nine million dollars link quarter, and the net interest margin increased by 5 basis points link quarter to 2.15 percent. Repricing from cash flows contributed 4.6 million of additional net interest income link quarter. Will continue deposit mixed shift and repricing as well as a smaller balance sheet from lower deposit balance.

Dean: Thanks, Brad. Net interest income was $114.8 million in the second quarter, an increase of $0.9 million link quarter, and the net interest margin increased by five basis points link quarter to 2.15%.

Dean: Repricing from cash flows contributed $4.6 million of additional net interest income link order for continued deposit mix shift and repricing as well as a smaller balance sheet from lower deposit balances subtracted $4 million.

Dean: In addition, net interest income was positively impacted by an interest recovery, which increased net interest income by approximately $300,000 on a link quarter basis.

Dean Shigemura: on the basis. During the quarter, our assets continued to reprise higher, supporting net interest income and the margin. In the second quarter, cash flows from maturities and prepayments of our fixed and adjustable rate assets was 593 million dollars. We continue to enjoy greater than 3% spread on the cash flow from these fixed and adjustable rate loans, being reinvested into like assets and investment securities, cash flows, being reinvested into cash. The annual cash flows from maturities and paid on for the fixed rate and adjustable rate assets are expected to be approximately $2.4 billion. In the second quarter, both our net interest income and net interest margin improved from the first quarter.

Dean Y. Shigemura: During the quarter, our assets continued to reprice higher, supporting net interest income and the margin. In the second quarter, cash flows from maturities and prepayments of our fixed and adjustable rate assets were $593 million. We continue to enjoy greater than 3% spread on the cash flow from these fixed and adjustable rate loans being reinvested into like assets, and investment securities cash flows being reinvested into cash.

Dean: During the quarter, our assets continued to reprice higher, supporting net interest income and the margin.

Dean: In the second quarter, cash flows from maturities and prepayments of our fixed and adjustable-rate assets was $593 million.

Dean: We continue to enjoy greater than 3% spread on the cash flow from these fixed and adjustable rate loans being reinvested into like assets and investment securities cash flows being reinvested into cash.

Dean Y. Shigemura: The annual cash flows for maturities and paydowns for the fixed rate and adjustable rate assets are expected to be approximately $2.4 billion. In the second quarter, both our net interest income and net interest margin improved from the first quarter. Well, continued pressure on our deposit mix and pricing resulted in slightly higher overall deposit costs. However, the rate of growth and deposit costs slowed significantly, and Asset Management, and cash flows continue to reprice our assets higher. As a result of our asset repricing hire, our overall yields have steadily increased, and as discussed earlier, are expected to continue to increase as new asset yields are well in excess of runoff yields.

Dean: The annual cash flows from maturities and paydowns for the fixed rate and adjustable rate assets are expected to be approximately $2.4 billion.

Dean: In the second quarter, both our net interest income and net interest margin improved from the first quarter.

Dean Shigemura: We'll continue to pressure on our deposit mix and pricing, which resulted in slightly higher overall deposit costs. The rate of growth and deposit costs load significantly, and asset cash flows continued to reprise our assets higher. As a result of our asset repricing higher, our overall yields have steadily increased and, as discussed earlier, are expected to continue to increase as new asset yields are well in excess of runoff yields. Non-interest income totaled $42.1 million in a second quarter, down $200,000 from the first quarter, as market conditions and transaction volumes were steady. We expect core non-interest income to be slightly higher in the second half of the year as market conditions improve.

Dean: While continued pressure on our deposit mix and pricing resulted in slightly higher overall deposit costs, the rate of growth in deposit costs slowed significantly, and asset cash flows continued to reprice our assets higher.

Dean: As a result of our asset repricing higher, our overall yields have steadily increased and, as discussed earlier, are expected to continue to increase as new asset yields are well in excess of runoff yields.

Dean Y. Shigemura: Non-interested income totaled $42.1 million in the second quarter, down $200,000 from the first quarter, as market conditions and transaction volumes were steady. We expect core non-interest income to be slightly higher in the second half of the year as market conditions improve. In the second quarter, we continue to manage our expenses in a disciplined manner. Expenses for the second quarter were $109.2 million, which included a $2.6 million one-time industry-wide FDIC special assessment.

Dean: Non-interest income totaled $42.1 million in the second quarter, down $200,000 from the first quarter, as market conditions and transaction volumes were steady.

Dean: We expect core non-interest income to be slightly higher in the second half of the year as market conditions improve.

Dean Shigemura: In the second quarter, we continue to manage our expenses in a disciplined manner. Expenses in a second quarter were $109.2 million, which included a $2.6 million one-time industry-wide FDIC special assessment. In addition, we recognized $800,000 of severance expenses in the quarter, which were resolved in 1.4 million of annual pre-tax expense reductions. And finally, $600,000 of other expenses in the quarter are not expected to reoccur in 2024. Thus, the adjusted core expense level in the second quarter was $105.3 million. Core expenses in the first quarter were $103.2 million when adjusted for $2.2 million of seasonal payroll taxes and benefits related to incentive payouts and restricted stock besting, and $500,000 of severance expenses.

Dean: In the second quarter, we continue to manage our expenses in a disciplined manner.

Dean: Expenses in the second quarter were $109.2 million, which included a $2.6 million one-time industry-wide FDIC special assessment.

Dean Y. Shigemura: In addition, we recognized $800,000 of severance expenses in the quarter, which will result in $1.4 million of annual pre-tax expense reductions. And finally, $600,000 of other expenses in the quarter are not expected to reoccur in 2024. Thus, the adjusted core expense level in the second quarter was $105.3 million. Core expenses in the first quarter were $103.2 million when adjusted for $2.2 million of seasonal payroll taxes and benefits related to incentive payouts and restricted stock vesting. $500,000 of severance expenses.

Dean: In addition, we recognized $800,000 of severance expenses in the quarter, which will result in $1.4 million of annual pre-tax expense reductions.

Dean: And finally, $600,000 of other expenses in the quarter are not expected to reoccur in 2024.

Dean: Thus the adjusted core expense level in the second quarter was $105.3 million.

Dean: Core expenses in the first quarter were $103.2 million when adjusted for $2.2 million of seasonal payroll taxes and benefits related to incentive payouts and restricted stock vesting.

Dean Shigemura: Thus, the adjusted core expense level in the second quarter was $2.1 million or 2% higher link quarter, primarily due to the annual merit increases, which took effect on April 1. We continue to evaluate expense levels and expect normalized expenses in 2024 to increase 1 to 2% from 2023 normalized expenses.

Dean Y. Shigemura: Thus, the adjusted core expense level in the second quarter was $2.1 million, or 2% higher than the linked quarter, primarily due to the annual merit increases which took effect on April 1. We continue to evaluate expense levels and expect normalized expenses in 2024 to increase 1 to 2% from 2023 normalized expenses of $419 million. To summarize the remainder of our financial performance in the second quarter of 2024, net income was $34.1 million, and earnings per common share was $0.81, a decrease from the link order of $2.3 million and $0.06 per share, respectively.

Dean: and $500,000 of severance expenses.

Dean: Thus, the adjusted core expense level in the second quarter was $2.1 million, or 2% higher linked quarter, primarily due to the annual merit increases which took effect on April 1.

Dean: We continue to evaluate expense levels and expect normalized expenses in 2024 to increase 1-2% from 2023 normalized expenses of $419 million.

Dean Shigemura: of 419 million. To summarize the remainder of our financial performance in the second quarter of 2024, net income was 34.1 million and earnings per common share was 81 cents, a decrease from link quarter of 2.3 million and 6 cents per share, respectively. Our return on common equity was 10.41%. We recorded a provision for credit losses of 2.4 million this quarter. The effective tax rate in the second quarter was 24.77%. The tax rate for the full year of 2024 is expected to be approximately 24.5%. In the second quarter, we successfully raised 165 million in connection with a preferred share offering.

Dean: To summarize the remainder of our financial performance in the second quarter of 2024.

Dean: Net income was $34.1 million.

Dean: and earnings per common share was $0.81, a decrease from link order of $2.3 million and $0.06 per share, respectively.

Dean Y. Shigemura: Our return on common equity was 10.41%. We recorded a provision for credit losses of $2.4 million this quarter. The effective tax rate in the second quarter was 24.77%. The tax rate for the full year of 2024 is expected to be approximately 24.5%. In the second quarter, we successfully raised $165 million in connection with a preferred share offering. As a result, our Tier 1 capital ratio increased to 13.99%, and the total capital ratio to 15.05%.

Dean: Our return on common equity was 10.41%.

Dean: We recorded a provision for credit losses of $2.4 million this quarter.

Dean: The effective tax rate in the second quarter was 24.77 percent.

Dean: The tax rate for the full year of 2024 is expected to be approximately 24.5 percent.

Dean: In the second quarter, we successfully raised $165 million in connection with a preferred share offering.

Dean Shigemura: As a result, our Tier 1 capital ratio increased to 13.99% in the total capital ratio to 15.05%. Our risk weighted assets to total assets ratio continued to be well below peer median, reflecting the low risk nature of our asset mix. During the quarter, we paid out 28 million to common shareholders in dividends and 2 million in preferred stock dividends. We did not repurchase common shares during the quarter under our share repurchase program. And finally, a board declared a dividend of 70 cents per common share for the third quarter of 2024.

Dean: As a result, our Tier 1 capital ratio increased to 13.99%, and the total capital ratio to 15.05%.

Dean Y. Shigemura: Our risk-weighted assets to total assets ratio continued to be well below the peer median, reflecting the low risk nature of our asset mix. During the quarter, we paid out $28 million to common shareholders in dividends and $2 million in preferred stock dividends. We did not repurchase common shares during the quarter under our share repurchase program. And finally, the board declared a dividend of 70 cents per common share for the third quarter of 2024. Now, I'll turn the call back over to Peter.

Dean: Our risk-weighted assets to total assets ratio continued to be well below peer median, reflecting the low-risk nature of our asset mix.

Dean: During the quarter, we paid out $28 million to common shareholders in dividends and $2 million in preferred stock dividends.

Dean: We did not repurchase common shares.

Dean: during the quarter under our share repurchase program.

Dean: And finally, a board declared a dividend of 70 cents per common share for the third quarter of 2024.

Peter Ho: Now I'll turn the call back over to Peter. Thanks, Dean.

Peter S. Ho: This concludes our prepared remarks. Now, we'd be happy to take your questions. Thank you.

Peter Ho: This concludes our prepared remarks. Now we'll be happy to take your questions. Thank you.

Dean: I'll turn the call back over to Peter.

Peter: Thanks, Dean. This concludes our prepared remarks. Now we'd be happy to take your questions.

Operator: Thank you. Ladies and gentlemen, there is a question. You will need to press star 11 on your telephone and wait for your name to be announced. Please stand by while we compile the Q&A roster. And our first question coming from the lineup, Jeff Rulis with DA Davidson, your line is open.

Unknown Executive: Please, and John, and as a question, you will need to press star 111 on your telephone and wait for your name to be announced. Please, then, bye. We'll be combined again, Erraster.

Speaker Change: Thank you. Ladies and gentlemen, to ask a question, you will need to press star 1 1 on your telephone and wait for your name to be announced. Please stand by while we compile your Q&A roster.

Unknown Executive: And now, first question coming from the line up: Jealous with D.A. Davison, Neil, and his open.

Speaker Change: And our first question coming from the lineup, Jeff Rulis with D.A. Davis and the line is open.

Unknown Executive: Thanks.

Dean Shigemura: Good morning, Jeff. Dean on the margin with what looks like peaking deposit costs, your expectation for further earning asset yield, repricing, wanted to get a sense for the margin expectations. I guess if we net maybe the interest recovery out, how do you see that sort of the second half play out? Yeah, we expect very modest, you know, flat to slightly higher that interest margin in the second half of the year. Looking at our pricing on the asset side, repricing, Mick, continuing to occur. And that's about, you know, four and a half to five million per quarter.

Dean Y. Shigemura: Dean, on the margin, with what looks like peaking deposit costs, your expectation for further earnings asset yield, and repricing, wanted to get a sense for the margin expectations, I guess if we net maybe the interest recovery out. How do you see the sort of second half play out?

Jeffrey Allen Rulis: Thanks. Good morning. Good job.

Jeffrey Allen Rulis: Dean, on the margin, with what looks like peaking deposit costs, your expectation for further?

Jeffrey Allen Rulis: earning asset yield, repricing, wanted to get a sense for the margin expectations, I guess if we net maybe the interest recovery out,

Speaker Change: How do you see the sort of the second half play out?

Dean Y. Shigemura: Oh, yeah, we expect a very modest, you know, flat to slightly higher net interest margin in the second half of the year, looking at our pricing on the asset side repricing mix, which is continuing to occur. And that's about, you know, four and a half to five million per quarter. And then on the deposit side, you know, we still see some assets, excuse me, some deposit remixing occurring. But to the extent that that will slow down, we would see a better margin improvement. But right now, you know, it looks to be a modest, very modest increase in the margin in the second half.

Dean: Yeah, we expect a very modest, you know, flat to slightly higher net interest margin in the second half of the year. Looking at our pricing on the asset side repricing mix.

Dean: continuing to occur.

Dean Shigemura: And then on the deposit side, you know, we still see some assets, excuse me, some deposit remex occurring. But to the extent that we'll slow down, you know, we would see a better margin improvement. But right now, you know, it looks to be, you know, a modest, very modest increase in margin in the second half.

Dean: And that's about, you know, four and a half to five million per quarter.

Dean: And then on the deposit side, you know, we still see some assets, excuse me, some deposit remix occurring.

Dean: But to the extent that we'll slow down, you know, we would see a better margin improvement. But right now, you know, it looks to be, you know, modest, very modest increase in margin in the second half.

Dean Shigemura: Yes, so just to be clear, Jeff, against reasonably conservative assumptions on deposit remix and fixed asset cash low grind forward, we would anticipate NIM to grow a few basis points per quarter and NII to pick up, you know, call it a million dollars. There is upside to that to the extent that we can arrest some of the deposit remix, but for now, we're pretty comfortable with kind of where we set things out and that would be our expectation moving forward.

Dean Y. Shigemura: Yeah, so just to be clear, Jeff, against reasonably conservative assumptions on deposit remix and fixed asset cash flow grind forward, we would anticipate NIM to grow a few basis points per quarter and NII to pick up, you know, call it a million dollars. There is upside to that to the extent that we can arrest some of the deposit remix. But for now, we're pretty comfortable with kind of where we've set things out, and that would be our expectation moving forward.

Dean: Yeah, so just to be clear, Jeff,

Speaker Change: against reasonably conservative assumptions on deposit remix.

Jeff: and Fixed Asset Cash Flow Grind Forward. We would anticipate NIM to grow a few basis points.

Jeff: per quarter and NII to pick up, you know, call it a million dollars. There is upside to that, to the extent that we can arrest some of the deposit remix. But for now, we're pretty comfortable with kind of where we've set things out. And that would be our expectation moving forward.

Dean Y. Shigemura: And are you assuming that... current expectation of rate cuts or is that in a vacuum, and maybe comment on what rate cuts what impact that would have, if any.

Dean Shigemura: And are you assuming that current expectation on rate cuts, or is that in a vacuum and maybe coming on what rate cuts, what impact that would have if any? We do anticipate rate cuts towards the back half of this year and then into next year. The impact of a 25 basis point reduction for us, as we look at it reasonably conservatively, could be a push, and if we get a little more draconian on the deposit repricing, call it down a million plus per quarter. So even with a pretty draconian deposit repriced built in to rate reductions, Jeff, we still think NII would be maybe down a little bit, and then as that repricing begins to be more of a tailwind, we'd get the benefit of that a couple quarters out.

Speaker Change: And are you assuming the...

Speaker Change: Current expectation on rate cuts or is that in a vacuum and maybe comment on what rate cuts?

Dean Y. Shigemura: We do anticipate rate cuts towards the back half of this year and then into next year. The impact of a 25 basis point reduction for us, as we look at it reasonably conservatively, could be a push. And if we get a little more draconian on the deposit repricing, call it down a million plus per quarter. So even with a pretty draconian deposit repricing built into rate reductions, Jeff, we still think NII would be maybe down a little bit. And then, as that repricing begins to be more of a tailwind, we get the benefit of that a couple quarters out.

Speaker Change: what impact that would have, if any.

Speaker Change: We do anticipate rate cuts towards the back half of this year.

Speaker Change: and then into next year. The impact of a 25 basis point reduction for us as we look at it

Speaker Change: reasonably conservatively could be a push.

Speaker Change: And if we get a little more draconian on the...

Speaker Change: Deposit repricing, call it down a million.

Speaker Change: plus per quarter. So even with a pretty draconian

Speaker Change: built into rate reductions, Jeff, we still think NII would be maybe down a little bit. And then as that repricing begins to be more of a tailwind, we'd get the benefit of that a couple quarters out.

Bradley Shairson: Appreciate it. Thanks. And maybe Brad, just a couple questions on credit where we're coming off a real tiny base, but I guess the increase in non-accruals and it looks like mostly C&I, any sort of similarities or by industry type there. And then I'll just maybe leave it at that for that first question.

Unknown Executive: Appreciate it. Thanks.

Bradley Shairson: And it may be Brad, just a couple of questions on credit that we're coming off a real tiny base. But I guess the increase in non-accruals, and it looks like mostly CNI, any sort of similarities or by industry type there.

Brad: Appreciate it. Thanks. And maybe Brad, just a couple questions on credit that we're coming off a real tiny base, but I guess the increase in non-accruals and it looks like mostly C&I, any

Bradley Shairson: And then I'll just maybe leave it at that to that first question. Yeah, I know that's a good observation in that it's a really low number. So, coming off such a low number, any little movements drive that number a little further either direction. That bit of deterioration has just come from a handful of one-off credits, and we're not seeing any negative trends in any particular area. So nothing systemic or broad-based, and we're actively working with our borrowers, and we do see opportunities actually over the next several quarters for some refinanceings and upgrades as well.

Speaker Change: sort of similarities or by industry type there. And then I'll just maybe leave it at that for that first question.

Bradley Shairson: Yeah, no, that's a good observation in that it's a really low number. So, coming off such a low number, any little movements drive that number a little further in either direction. That bit of deterioration has just come from a handful of one-off credits, and we're not seeing any negative trends in any particular area. So, nothing systemic or broad-based. And we're actively working with our borrowers, and we do see opportunities over the next several quarters for some refinancings and upgrades as well.

Brad: Yeah I know that that's a good observation in that it's a really low number so coming off such a low number any little movements drive that number a little further either direction. That bit of deterioration has just come from a handful of one-off credits.

Brad: And we're not seeing any negative trends in any particular area. So nothing systemic or broad-based. And we're actively working with our borrowers, and we do see opportunities, actually, over the next several quarters for some refinancings and upgrades as well.

Bradley Shairson: and Brad on the, again, make a big deal out of small numbers here, but the year-over-year office vacancy rate being down. You know, I guess the better question is just the overall feel of offices on Oahu and any kind of detail that you can give if you think that's some kind of head bank or vacancies being down or, I guess, overall demand on Oahu on the office side would be helpful.

Bradley Shairson: And Brad, again, make it a big deal out of small numbers here, but the year of your office vacancy being down, I guess the better question is just the overall feel of office on a Wahoo and any kind of detail that you can give if you think that's somewhat of a head bake or vacancies being down or I guess overall demand on a Wahoo on the office side would be helpful. Yeah. So our office portfolio, in general, is performing really well. Only 2.4% is criticized, and our borrowers tend to have strong financial wear with all, particularly for any of our larger exposures.

Brad: and Brad on the again make it a big deal out of small numbers here but the year over your office vacancy being being down

Speaker Change: You know, I guess the better question is just the overall feel of office.

Brad: and any kind of detail that you can give if you think that's

Speaker Change: somewhat of a head bank or vacancies being down or I guess overall demand on Oahu on the office side would be would be helpful.

Bradley Shairson: Yeah, so our office portfolio, in general, is performing really well. Only 2.4% is criticized, and our borrowers tend to have strong financial wherewithal, particularly for any of our larger exposures.

Speaker Change: Yeah, so our office portfolio in general is performing really well. Only 2.4% is criticized, and our borrowers tend to have strong financial wherewithal, particularly for any of our larger exposures.

Bradley Shairson: and the reality of how office spaces come down 1.2 million square feet in just the last five years, and the forecast is for another 400,000 square feet to come off in the next three years. So, with that reality, there's a natural repurposing of office space to a natural change in supply and demand dynamics where there's demand for multi-family. So we see conversions from office to multi-family, and not taking off the office exposure has really played well for the islands of Hawaii. A lot of the office exposure is, of course, in downtown Honolulu, and there have been just such repurposing here in downtown.

Bradley Shairson: And the reality of how office space has come down 1.2 million square feet in just the last five years, and the forecast is for another 400,000 square feet to come down in the next three years. So with that reality, there's a natural repurposing of office space to a natural change in supply and demand dynamics where there's demand for multifamily. So we see conversions from office to multifamily, and that taking off the office exposure has really played well for the islands of Hawaii. A lot of the office exposure is, of course, in downtown Honolulu, and there have been just such repurposings here downtown, so I am not seeing any concern here in office space.

Speaker Change: And the reality of how office spaces come down 1.2 million square feet in just the last five years and the forecast is for another 400,000 square feet to come off in the next three years.

Speaker Change: So, with that reality, there's a natural repurposing of office space to

Speaker Change: A natural change in supply and demand dynamics where there's demand for multi-family.

Speaker Change: So we see conversions from office to multifamily and that taking off the office exposure.

Speaker Change: has really played well for the islands of Hawaii. A lot of the office exposure is, of course, in downtown Honolulu, and there have been just such repurposing here downtown. So, not seeing any concern here in office space.

Bradley Shairson: So not seeing any concern here in office space. Jeff, it's a pretty stable market. There's not a lot of inflow of demand, and so historically there's not been much building from an office market perspective out here. And as Brad described, what we're seeing kind of for the long term is a trickle trend towards housing office of this office stop, which is helping to drive down supply. Gotcha. Okay. So it sounds like a pretty steady demand, but maybe nibbling away at the repurposing health, those numbers.

Bradley Shairson: Yeah, Jeff, it's a pretty stable market. There's not a lot of inflow of demand. And so historically, there's not been much building from an office market perspective out here. And as Brad described, what we're seeing kind of for the long term is a trickle trend toward housing off of some of this office stock, which is helping to drive down supply. Okay.

Speaker Change: Yeah, Jeff, it's a pretty, it's a pretty stable market. There's not a lot of inflow of demand. And so historically, there's not been much building from an office market perspective out here. And as Brad

Brad: describe what we're seeing kind of for the long term is a trickle trend towards housing off of some of this office stock which is helping to drive down supply.

Bradley Shairson: Gotcha. Okay. So it sounds like there's pretty steady demand, but maybe nibbling away at the repurposing helped those numbers.

Gotcha: Gotcha. Okay. So it sounds like a pretty steady demand, but maybe nibbling away at the repurposing helped those numbers. Fair enough. Okay. I'll step back. Thank you. Take care.

Unknown Executive: Okay, I'll step back. Thank you.

Unknown Executive: And our next question coming from the line up, and you would like to add 5% where you want to open. Hey, good morning, everyone.

Operator: Fair enough. Okay. I'll step back. Thank you. Take care.

Gotcha: Thank you.

Operator: And our next question comes from the line of Andrew Lightwood, Piper Sandler. You'll let us open, then.

Gotcha: And our next question coming from the line of Andrew Lightwood, Piper Sandler. You may let us open.

Peter S. Ho: Hey, good morning, everyone. Um, loan growth here on the commercial side was pretty solid. Is there anything specific you can point to for CNI or CRE with demand?

Unknown Executive: And long growth here on the commercial side was pretty solid.

Unknown Executive: Hey, good morning everyone. Loan growth here on the commercial side was pretty solid. Is there anything specific you can point to for C&I or CRE with demand?

Unknown Executive: Is there anything specific you can point to for CNI or CRE with demand? Yeah, you're right. Long growth was up 0.7% on a link basis. And headlined by CNI, and it was really kind of a bunch of small stuff, right Jim? Yeah, nothing in particular, which is a good thing. And then on the CRE side, it's kind of similarly. I mean, no mega deals, nothing that really drove the needle from a single credit perspective. So just kind of a good all around effort. Got it.

Peter S. Ho: Yeah, you're right. Loan growth was up 0.7% on a linked basis and headlined by CNI.

Speaker Change: Yeah, you're right. Loan growth was up 0.7% on a linked basis.

Peter S. Ho: And it was really kind of a bunch of small stuff, right, Jim? Yeah, it was, Peter. Yeah, nothing in particular, which is a good thing. And then on the CRE side, kind of similarly, I mean, no mega deals, nothing that really drove the needle from a single credit perspective. So just kind of a good all-around effort. I got it. How's the pipeline looking here for the next couple quarters? Yeah, actually, I think pipelines have grown.

Speaker Change: [inaudible]

Speaker Change: Headlined by C&I. And it was really kind of a bunch of small stuff, right, Jim? Yeah, it was, Peter. Yeah, nothing in particular.

Speaker Change: which is a good thing.

Speaker Change: And then on the CRE side, it's kind of similarly, I mean, no mega deals, nothing that really drove the needle from a single credit perspective. So just kind of a good all-around effort.

Peter S. Ho: Got it. How's the pipeline looking here for the next couple quarters? Yeah, actually, I think the pipeline has grown quite nicely since the beginning of the year, and I think we feel pretty good about opportunities on the commercial side into Q3 and, potentially, into Q4 at this point. Got it. Then on consumer loans, I mean, you still see declines in residential, home equity, and auto. Any reason to think that that downward trend won't continue?

Unknown Executive: How's the pipeline looking here for the next couple of quarters? Yeah, actually, I think pipelines grown quite nicely since the beginning of the year. And I think we feel pretty good about opportunities on the commercial side on the Q3 and potentially the Q4 at this point. Got it.

Speaker Change: Got it. How's the pipeline looking here for the next couple quarters? Yeah, actually, I think pipeline's grown quite nicely since the beginning of the year. And I think we feel pretty good about opportunities on the commercial side on the Q3 and potentially the Q4 at this point.

Unknown Executive: Then on consumer loans, I mean, you still see declines in residential home equity, auto, any reason to think that that downward trend won't continue. Yeah, so on the consumer side, a little bit of a different story, as you can tell from the numbers. I think that Rezi and home equity is, you know, that's going to be rate dependent. And so hopefully, if an as rates come down in that space, there could be at least a flattening and hopefully a little bit of an uptick. The indirect looks a little bit different. We're seeing a little softness in the marketplace and a good amount of demand or competition, particularly from the credit union space.

Speaker Change: Got it. Then on consumer loans, I mean you still see declines in residential, home equity, auto. Any reason to think that that downward trend won't continue?

Peter S. Ho: Yeah, so on the consumer side, a little bit of a different story, as you can tell from the numbers. I think that RESI and home equity are, you know, that's going to be rate dependent. And so hopefully, if and as rates come down in that space, there could be at least a flattening and hopefully, a little bit of an uptick. The indirect looks a little bit different.

Speaker Change: Yeah, so on the consumer side, a little bit of a different story.

Speaker Change: As you can tell from the numbers, I think that Rezi and home equity is, you know, that's going to be rate.

Speaker Change: dependent, and so hopefully

Speaker Change: If and as rates come down in that space, there could be...

Speaker Change: at least a

Peter S. Ho: We're seeing a little softness in the marketplace and a good amount of demand or competition, particularly from the credit union space. So that's been, competitively, as well as, I think, organically, a little bit of a tougher situation than previously. And then finally, on the installment side, a little bit of self-inflicted issues there. I think we probably got a little too overly conservative on our underwriting, and we'll likely be winding that back a little bit as we step forward.

Speaker Change: you know, a flattening and hopefully a little bit of an uptick. The indirect looks a little bit different. We're seeing a little softness in the marketplace.

Speaker Change: and a good amount of competition, particularly from the credit union space. So that's been competitively as well as, I think, organically a little bit of a tougher situation than previously.

Unknown Executive: So that's been competitively, as well as, I think, organically, a little bit of a tougher situation than previously.

Unknown Executive: and then finally on the installment side. I've a little bit of self-inflicted issues there. I think we've probably got a little overly conservative on our underwriting, and likely we'll be winding that back a little bit as we step forward. So I'm hoping that we'll get at least a kind of a flat result there. So yeah, all of that up Andrew, both commercial and consumer. And we're hopeful to see modest growth in the back half of this year. When you combine commercial and consumer, I mean nothing, nothing that's going to, you know, take your breath away, but you know, call it mid lower single digit annualized growth for the back half.

Speaker Change: And then finally, on the installment side,

Speaker Change: A little bit of self-inflicted issues there. I think we probably got a little overly conservative on our underwriting and likely we'll be winding that back a little bit as we step forward. So I'm hoping that we'll get at least a kind of a flat result there. So you had all of that up, Andrew, both commercial and consumer, and we're hopeful to see

Peter S. Ho: So I'm hoping that we'll get at least kind of a flat result there. So you add all of that up, Andrew, both commercial and consumer, and we're hopeful to see modest growth in the back half of this year when you combine commercial and consumer. I mean, nothing that's going to take your breath away, but call it mid, lower single-digit annualized growth for the back half.

Unknown Executive: Modest growth in the back half of this year when you combine commercial and consumer. I mean nothing nothing that's going to you know take your breath away but you know call it mid lower single-digit annualized growth for the back half.

Unknown Executive: Great, that's very encouraging. Good year. Thank you.

Dean Y. Shigemura: Great, that's very encouraging. Good to hear. Thank you. And then just a housekeeping question on expenses for the FDIC insurance, even if I take out the one-timer for the special assessment, that line was up a little bit. Is there a new fee right there? Or was this still just a little bit of an outsized quarter?

Unknown Executive: And then just a housekeeping question on expenses on the FGC insurance, even if I take out the one timer. Special assessment; that line was up a little bit. Is there a new fee rate there, or was this still just a little bit of an outside quarter? Yeah, was a little bit of an outside quarter, but also what happened was, you know, we did get the. The bill isn't a rear. So they, they, it's a little bit of a tool for the first quarter. What's included in the second quarter? Got it. Okay. That's very helpful. Thanks for taking the questions.

Unknown Executive: Great, that's very encouraging. Good to hear, thank you. And then just a housekeeping question on expenses. On the FDIC insurance, even if I take out the one-timer for the special assessment, that line was up a little bit. Is there a new fee rate there, or was this still just a little bit of an outsized quarter?

Dean Y. Shigemura: Yeah, it was a little bit of an outsized quarter, but also, what happened was, you know, we did get the bill. It's the bill isn't a rear so they it's a little bit of a true up for the first quarter. That's what's included in the second. Got it. Okay.

Speaker Change: Yeah, it was a little bit of an outside squatter, but also what happened was, you know, we did get the

Speaker Change: The bill isn't a rear, so it's a little bit of a true-up for the first quarter.

Operator: Got it. Okay. That's very helpful. Thanks for taking the questions. I will stop back here.

Speaker Change: What's included in the second quarter.

Unknown Executive: I will step back here. Thank you.

Speaker Change: Got it. Okay. That's very helpful. Thanks for taking the questions. I will stop back here. Take care.

Operator: Thank you. And as a reminder, to ask a question, please press star 11. And our next question, coming from the line of Kelly Motta with KBW, your line is open.

Unknown Executive: And so I'm going to ask a question; please press star 111.

Kelly Motta: And our next question coming from the line up, Kelly Malta, with KBW, you're on this open. Hi, good morning.

Speaker Change: Thank you. And as a reminder to ask a question, please press star 11. And our next question coming from the line of Kelly Motta with KBW. Your line is open.

Dean Y. Shigemura: Hi, good morning. Thanks for the question. I was hoping to follow up a bit on your fee income outlook for that to grow in the second half of the year. Just wondering, where are you seeing good traction on that, any particular drivers that inform that expectation that we should be keeping in mind. And as a second part, there was a decrease in fees exchanged and other service charges in 2Q. And I think that's usually a seasonally strong quarter. Wondering if there's any puts or takes in that line item there as we think about that.

Kelly Motta: Thanks for the question. I was, I was hoping to follow up a bit on your fee and come out. Look for that to grow in the second half of the year.

Kelly Ann Motta: Hi, good morning. Thanks for the question. I was, I was hoping to follow up a bit on your fee income outlook for that to grow in the second half of the year. Just wondering, where are you seeing

Kelly Motta: Just wondering where are you seeing a good traction on that, any particular drivers that inform that expectation that we should be keeping in mind. And as the second part, there was a decrease in fees, exchange, and other service charges into Q. And I think that's usually a seasonally strong quarter, wondering if there's any puts or takes that line on them there as we think about that. Mainly based on market conditions and transaction volumes, we see it, you know, slightly better in the second half of the year. And then actually there were some seasonal revenue in the second quarter.

Kelly Ann Motta: Good traction on that. Any particular drivers that

Kelly Ann Motta: inform that expectation that we should be keeping in mind and as the second part I there was a decrease in fees exchange and other service charges in 2Q and I think that's usually a seasonally strong quarter wondering if there's any puts or takes in that line item there as we think about that.

Dean Y. Shigemura: Based on market conditions and transaction volumes, we see it slightly better in the second half of the year. And then there was actually some seasonal revenue in the second quarter. There were some seasonal impacts. Traditionally or historically, Merchant Services had a very good first quarter, so it did come down slightly in the second quarter. And then kind of offsetting that was on the trust side, you know, we do have a strong tax quarter in the second quarter as well. So those two kind of offset each other. So going into the second half, we do see a trend upwards. Yeah.

Kelly Motta: There were some seasonal impacts; traditionally or historically, the merchant services has a very good first quarter. So it did come down slightly in the second quarter. And they kind of offsetting that in the was on the trust side. You know, we do have a strong tax quarter in the second quarter as well. So those two kind of offset. So going into the second half, we do see a trend upwards. Yeah.

Kelly Ann Motta: Revenue.

Kelly Ann Motta: In the second quarter, there were some seasonal impacts.

Speaker Change: Traditionally, or historically, the Merchant Services has a very good first quarter, so it did come down slightly in the second quarter.

Speaker Change: And then kind of offsetting that was on the trust side, you know, we do have a strong tax.

Speaker Change: [inaudible]

Peter S. Ho: Yeah, Kelly, Kelly, we're hoping to hang on to the really strong performance that we're seeing in our wealth businesses. So the trust and private banking teams are doing a really nice job.

Kelly Motta: Kelly Kelly, we're hoping to hang on to the really strong performance that we're seeing in our wealth businesses. So the trust and private banking teams do a really nice job. We're getting good traction on the broker-dealer side. The exciting thing is we've got a good amount of investment to put into these businesses because we think we can grow them faster than in our more traditional businesses. So opportunity there. We'll see we, you know, as you know, we've been a little hamster on some of our other fee areas. Mortgage banking, for instance, is pretty much in the doldrums. Swap income has been down the past couple of quarters as CRE transactions just haven't been at the same volume levels as previously. To the extent that we can get some activity driven off of rate relief.

Kelly Ann Motta: Kelly, Kelly, we're hoping to

Peter S. Ho: We're getting good traction on the broker-dealer side. The exciting thing is we've got a good amount of investment to put into these businesses because we think we can grow them faster than in our more traditional businesses. So, there is opportunity there. We'll see We've been a little hamstrung on some of our other fee areas mortgage banking, for instance, is pretty much in the doldrums Swap income has been down the past couple of quarters as CRE transactions Just haven't been at the same volume levels as previously to the extent that we can get some some activity driven off of rate relief.

Kelly: hang on to the really strong performance that we're seeing in our wealth businesses, so

Speaker Change: The Trust and Private Banking team is doing a really nice job. We're getting good traction on the broker-dealer side. The exciting thing is we've got a good amount of investment to put into these businesses because we think we can grow them faster than in our more traditional businesses.

Speaker Change: So, opportunity there, we'll see.

Speaker Change: As you know, we've been a little hamstrung on some of our other fee areas.

Speaker Change: Mortgage banking, for instance, is pretty much in the doldrums. Swap income has been down the past couple of quarters as CRE transactions just haven't been at the same volume levels as previously. To the extent that we can get

Peter S. Ho: We'll see what happens in that space. So I'd say that we kind of remain reasonably conservative in our view on the fee side, but I would say that that could be impacted positively by rate rate induced volume opportunities

Kelly Motta: We'll see what happens in that space. So I'd say that we kind of remain reasonably conservative in our view on the fee side. But I would say that that could be impacted positively by rate-induced volume opportunity.

Speaker Change: Some activity driven off of rate relief.

Speaker Change: We'll see what happens in that space. So I'd say that we kind of remain reasonably conservative in our view on the fee side, but I would say that that could be impacted positively by rate-induced volume opportunities.

Peter S. Ho: Great, that's super helpful. I was hoping to get, as a follow-up, just some color on your preferred rates that happened late in the quarter. I know that that really bolstered your tier one capital and was oversubscribed. I believe in that perspective, you cited potentially stronger asset growth. Just wondering how you view your capital position and the thought process as to raise capital as you did last quarter.

Kelly Motta: Great, that's super helpful. I was hoping to get, as a follow-up, just some color on your preferred raise that happened late in the quarter. I know that that really bolstered your one capital and was oversubscribed. I believe in that perspective, you cited potentially stronger asset growth; just wondering how you're viewing the capital position and the thought process as to raise capital as you did last quarter. Well, what we saw was an opportunity in the marketplace after a few regionals came in to step in with the preferred raise similar to the one that we did just over three years ago, now, which was highly successful.

Speaker Change: Great, that's super helpful. I was hoping to get, as a follow-up, just

Speaker Change: Some color on your preferred rates that happened late in the quarter. I know that that really bolstered your tier one capital and was oversubscribed. Just, I believe, in that perspective, you cited Potentially stronger asset growth. Just wondering how you're viewing

Speaker Change: You know the capital position and the thought process as to

Peter S. Ho: Yeah, well, what we saw was an opportunity in the marketplace after a few regionals came in to step in with a preferred race similar to the one that we did just over three years ago now, which was highly successful. So from an execution standpoint, we felt very confident that we could be successful in this space in the current environment. We moved forward, had great execution, and the underwriters did an exceptional job for us.

Speaker Change: raise capital as you did last quarter.

Speaker Change: Yeah, well, what we saw was an opportunity in the marketplace after a few regionals came in to step in with a preferred race similar to the one that we did.

Peter Ho: So, from an execution standpoint, we felt very confident that we could be successful in the space, in the current environment. We moved forward, had great execution; the underwriters did an exceptional job for us. And really, the purpose of the raise was to get our capital levels to the levels that we wish to have them at, kind of in one fell swoop, if you will, as well as to position us to grow further. And growth has been relatively flat the last four quarters or so, but I think, as you can tell by some of the commentary, things seem to be looking up from here, and that was really the purpose behind the raise.

Speaker Change: just over three years ago now, which was which was highly successful. So from an execution standpoint, we felt very confident that we could we could be successful in this space in the current environment.

Speaker Change: We moved forward, had great execution, the underwriters did an exceptional job for us. And really the purpose of the raise was to get our capital levels to the levels that we wish to have them at.

Peter S. Ho: And really, the purpose of the raise was to get our capital levels to the levels that we wish to have them at, kind of in one fell swoop, if you will, as well as to position us to grow further. And, you know, growth has been relatively flat the last four quarters or so. But I think, as you can tell by some of the commentary, things seem to be looking up from here. And that was really the purpose behind the raise.

Speaker Change: kind of in one fell swoop, if you will, as well as to position us

Speaker Change: to grow further and, you know.

Speaker Change: Growth has been relatively flat the last four quarters or so, but I think, as you can tell by some of the commentary, things seem to be looking up from here, and that was really the purpose behind the race.

Dean Y. Shigemura: Great, thank you so much for the color. Really quick last one for me, a housekeeping item. Dean, can you remind us of the three billion swaps? How much of that is against the loan book?

Unknown Executive: Great, thank you so much for the color. Really quick last one for me, housekeeping item. Dean, can you remind us of the three billion of flops? How much of that is against the loan book? I guess the loan book is 1.7 billion, and in particular it's against the Rosie mortgage book. Perfect, thank you so much. I'll step back. Thank you, Kelly. Thank you.

Speaker Change: Great, thank you so much for the color. Really quick last one for me, housekeeping item. Dean, can you remind us of the 3 billion of swaps, how much of that is against the loan book?

Dean Y. Shigemura: Against the loan book, it's $1.7 billion. And in particular, it's against the Brazy Mortgage.

Dean Y. Shigemura: I guess the loan book it's 1.7 billion and in particular it's against the Brazy Mortgage book.

Dean Y. Shigemura: Perfect. Thank you so much. I'll step back.

Speaker Change: Perfect. Thank you so much. I'll step back.

Kelly Motta: And at this time, I see no further questions in the queue. I will not warm it up. See, Kelly, just tweak you. Kelly, your line is open. Oh, great. Thanks for letting me jump in.

Operator: And at this time, I see no further questions in the queue. I will now... One moment, let's see. Kelly just requeued. Kelly, your line is now open.

Speaker Change: Thank you.

Speaker Change: And at this time I see no further questions in the queue.

Speaker Change: One moment, let's see, Kelly just re-queued.

Kelly Ann Motta: Oh, great. Thanks for letting me jump in. I wanted to share the space.

Peter Ho: I wanted to share the space, but if you could, I'm wondering if, just from a high level, I know the Lahaina bankruptcy or the Lahaina signing of blame is as to who's culpable for the fire is coming up. I'm wondering if you could offer your thoughts, being much closer on the ground than we are on the developing, how that situation is developing. Yeah, obviously we're hopeful of a stable and reasonable outcome there, Kelly, but I really don't have any particular insight different from what I think most people are reading in the papers. Great, thanks. Take care.

Kelly: Kelly, your line is now open. Oh, great. Thanks for letting me jump in. I wanted to share the space, but if you could, I'm wondering if, just from a high level, I know the Lahaina Bankruptcy

Peter S. Ho: But if you, if you could, I'm wondering if, from a high level, I know about the Lahaina Bankruptcy for the Lahaina Signing of Blame. I'm just wondering if you could offer your thoughts, being much closer on the ground than we are, the developments, how that situation is developing. Yeah, obviously, we're hopeful of a

Kelly: or the Lahaina Signing of Blame is

Speaker Change: As to, you know, who's culpable for the fire is coming up. Just wondering if yours could offer your thoughts being, you know, much closer on the ground than we are on

Peter S. Ho: Yeah, obviously, we're hopeful of a stable and reasonable outcome there, Kelly, but I really don't have any particular insight different from what I think most people are reading in the paper.

Speaker Change: the developing, how that situation is developing.

Speaker Change: Obviously, we're hopeful of a stable and reasonable outcome there, Kelly, but I really don't have any particular insight different from what I think most people are reading in the papers.

Unknown Executive: Thank you.

Kelly: Great, thanks. Take care.

Jared Schultz: And we have a question from Jared Schultz from Barclays Hill on this open.

Operator: And we have a question from Jared Schaub from Barclays. You may let us open.

Kelly: Thank you.

Jared Schultz: Hey, good afternoon. Thanks for the questions. A couple of things just to tap.

Jared David Wesley Shaw: Hey, good afternoon. Thanks for the questions. A couple of things just to touch on in the presentation, it looks like there's a $600,000 non-recurring expense called out in the presentation, but not in the release. What's the color around that, and where should we be pulling that from?

Speaker Change: And we have a question from Jared Schropp from Barclays. Your line is open.

Jared Schropp: Hi, good afternoon. Thanks for the questions. A couple things just to tap. In the presentation it looks like there's a $600,000 non-recurring expense called out, but not in the release. What's the, any color around what that is and where we should be pulling that from?

Dean Shigemura: In the presentation, it looks like there's a $600,000 non-reguring expense called out, but not in the release. Yeah, part of it was the FDIC true up that we had in the second quarter, separate from the special assessment, and there are a number of other items that also were small and hard to differentiate in the line items, but there are like a couple of hundred thousand dollars here and there that were one time items, smaller items. Okay, all right, let's recall our things and then just going back to your comments around the reinvestment rate on the securities and the pick up there, you know, at the same time we're seeing the securities portfolio running lower, how should we be thinking about the actual use of cash flow from the securities portfolios you go through the rest of the year.

Dean Y. Shigemura: Yeah, part of it was the FDIC true-up that we had in the second quarter, separate from the special assessment. And there are a number of other items that also were small and hard to differentiate in the line items, but there are like a couple of hundred thousand dollars here and there that were one-time items, smaller items.

Speaker Change: Yeah, part of it was the FDIC true-up that we had in the second quarter.

Speaker Change: separate from the special assessment. And there are a number of other items that also.

Speaker Change: were small and hard to differentiate in the line items, but there are like a couple of hundred thousand dollars here and there that were one-time items.

Dean Y. Shigemura: Okay, all right. That's a good color. Thanks.

Speaker Change: Smaller items.

Speaker Change: Going back to your comments around the reinvestment rate on the securities and the pickup there, at the same time we're seeing the securities portfolio running lower, how should we be thinking about

Dean Y. Shigemura: And then just going back to your comment around the reinvestment rate on the securities and the pickup there, you know, at the same time, we're seeing the securities portfolio running lower. What should we be thinking about? The actual use of cash flow from the securities portfolio as you go through the rest of the year. Should we be reinvesting and keeping balances flat, should they be growing, or should we expect them to continue to trend lower?

Dean Shigemura: Should we should we be reinvesting and keeping balances flat should they be growing or should we expect them to continue to trend lower. Right now, well in the second quarter, you're right, we did allow it to run off, looking for, you know, we do see some opportunities to reinvest some of the cash flow. And looking at, you know, where rates are trending or could trend, you know, looking at possibly some fixed rate investments as well as looking at where on the floating rate side, you know, there's additional spread. So, in general, I would say that we are looking to reinvest some of that cash flow.

Speaker Change: the actual use of cash flow from the securities portfolio as you go through the rest of the year? Should we should we be reinvesting and keeping balances flat? Should they be growing or should we expect them to continue to trend lower?

Dean Y. Shigemura: Right now, well, in the second quarter, you're right, we did allow it to run off. Looking forward, we do see some opportunities to reinvest some of the cash flow. And in looking at where rates are trending or could trend, you know, looking at possibly some fixed-rate investments, as well as looking at where on the floating rate side, you know, there's additional spread. So, in general, I would say that we are looking to reinvest some of that cash flow.

Speaker Change: Right now, well in the second quarter, you're right, we did allow it to run off. Looking forward...

Speaker Change: You know, we do see some opportunities.

Speaker Change: to reinvest some of the cash flow.

Speaker Change: and looking at, you know, where rates are trending or could trend, you know, looking at possibly some fixed rate investments, as well as looking at where on the floating rate side, you know, there's additional spread.

Dean Shigemura: Yeah, I mean, I think as Fed funds was, you know, has been elevated, the transfer into that category has been a pretty easy decision. As that number begins, or that category begins to decline, and yield likely in the coming orders will be a little more thoughtful in where we place those funds.

Dean Y. Shigemura: Yeah, I mean, as Fed funds were, you know, have been elevated, the transfer into that category has been a pretty easy decision. As that number begins, or as that category begins to decline in yield, we will likely be a little more thoughtful in where we place those funds.

Speaker Change: So, in general, I would say that we are looking to reinvest some of that cash flow.

Speaker Change: Yeah, I mean, I think as as fed funds was, you know, has been elevated.

Speaker Change: The transfer into that category has been a pretty easy decision. As that number begins or as that category begins to decline in yield, likely in the coming quarters, we'll be a little more thoughtful in where we place those funds.

Unknown Executive: Okay. Thanks.

Bradley Shairson: Okay, okay. Thanks. And just finally for me on the credit, you know, again recognizing that we're talking about smaller numbers here, but what's driving some of the migration in C&I, just given, you know, the fact that it does feel like the Hawaii economy is moving along pretty well with, you know, visitor spend and visitor levels and employment. What's driving those incrementally weaker C&I trends?

Bradley Shairson: And then just finally for me on the credit, you know, again, recognizing that we're talking about smaller numbers here, but what's driving some of the migrant green and CNI just given, you know, the fact that it does feel like, you know, the Hawaii economy is moving along pretty well with, you know, visitor spend and visitor levels and employment. What's driving those incrementally weaker CNI trends? Just kind of one-off types of small loans being dealt with. There's no particular category or broader trend attached to any of them. So not really an expectation, then, to see continued growth from here.

Speaker Change: Okay, okay.

Speaker Change: Thanks and then just finally for me on the on the credit, you know, again, recognizing that we're talking about smaller numbers here, but

Speaker Change: What's driving some of the migratory in CNI just given

Speaker Change: The fact that it does feel like the Hawaii economy is moving along pretty well with visitor spend and visitor levels and employment, what's driving those incrementally weaker CNI trends?

Bradley Shairson: Just kind of one-off types of small loans being dealt with. There's no particular category or broader trend attached to any of them.

Speaker Change: Just kind of one-off types of small loans being dealt with.

Speaker Change: There's no particular category or or broader trend attached to any of them.

Bradley Shairson: So not really an expectation then to see continued growth from here. I think the way I'd look at it is because, to your point, it's such small numbers, the percentages. I know that if you look at it graphically, it looks like a potential trend, and I'd just be wary of over-analyzing that and trying to assume that there's a trend there.

Speaker Change: So not really an expectation then to see continued growth.

Bradley Shairson: I don't think I said nine basis points. That's very tough. But yeah, okay. I think the way I look at it is because, to your point, it's such small numbers, the percentages. I know that if you look at it graphically, it looks like a potential trend, and I just be wary of over analyzing that and trying to assume that there's a trend there. Yeah, I mean, you're always going to have activity, and when that activity is copying against an extremely small number, you're going to get big percentage increase changes.

Speaker Change: From the from here.

Speaker Change: I think the way I'd look at it is because, to your point, it's such small numbers, the percentages, I know that if you look at it graphically, it looks like a potential trend and I'd just be wary of...

Bradley Shairson: I mean, you're always going to have activity, and when that activity is copying against an extremely small number, you're going to get big percentage increases and changes. Great.

Speaker Change: overanalyzing that and trying to assume that there's a trend there.

Speaker Change: I mean you're always going to have activity and when that activity is competing against an extremely small number you're going to get big percentage increases and changes.

Unknown Executive: Great.

Jared David Wesley Shaw: Great. That's it for me. Thank you.

Unknown Executive: That's it for me. Thank you.

Speaker Change: Great. Great. That's it for me. Thank you.

Unknown Executive: And I see no further questions in the queue.

Operator: And I see no further questions in the queue. I will now turn it back to Chang Park for closing remarks. Thank you, everyone, for joining us.

Speaker Change: Thank you.

Chang Park: I will now turn them back to the Chang Park to close the remarks. Thank you, everyone, for joining us today and for your continued interest in Bank of Hawaii. As always, please feel free to reach out to me if you have any additional questions.

Speaker Change: And I see no further questions in the queue. I will now turn it back to Chang Park for closing remarks.

Chang Park: Thank you everyone for joining us today and for your continued interest in Bank of Hawaii. As always, please feel free to reach out to me if you have any additional questions.

Speaker Change: Thank you everyone for joining us today and for your continued interest in Bank of Hawaii. As always, please feel free to reach out to me if you have any additional questions.

Chang Park: Thank you.

Unknown Executive: Ladies and gentlemen, I've got a conference for today. Thank you for your participation.

Operator: Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.

Speaker Change: Thank you.

Unknown Executive: You may now disconnect.

Speaker Change: Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.

Q2 2024 Bank of Hawaii Corporation Earnings Call

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