BOH - Earnings call transcript Q2 2018 | Bank of Hawaii Corporation

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Operator

Good day ladies and gentlemen. Welcome to the Bank of Hawaii Corporation Second Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and our instructions will follow at that time. [Operator Instructions] I would like to [Indiscernible] this conference call Ms. Wyrick. Cindy

ma'am. begin, may You

Cindy Wyrick

Chief you, Kevin. for morning everyone. you Mary Ho; good our our Shigemura; Chief Risk Good us today. morning, Officer, our Peter joining CEO, this President afternoon Officer, Also Dean Chairman, and Thank Sellers. and Thank Financial with is me

may there remind the Before And our believe Ho. while me conference materially are variety will reasons you differ reasonable, of a get results projected. the we I'd let contain those call actual we to assumptions today's like Peter started, call And some statements. from are forward-looking to over now turn

Peter Ho

Cindy. $XX.X Thanks Compared grew good quarter our the and the asset strong. increased financial everyone loans. consumer overall in results to of quite joining growth last quarter X.X%. for for and from capital quality with the levels remained financial billion remained us X.X% performance, quarter, solid, of thanks previous total our had year, today. the Good second with liquidity pleased We our second morning at loans the We're and with quarter up commercial Loans and end both XXXX.

deposits end in to the decline first books time public decision offset our up of last or from a were deposits -- total deposit X.X%. Compared quarter Our and the consumer second overall quarter. commercial this growth with in reduce resulting the quarter both small for first year, the quarter

Dean? provide more after Mary some Dean, let asset comments you me call then and Now, financial will detail Dean the to quality. with turn over give to on

Dean Shigemura

quarter compared share $XX or year. quarter first or of and in $X.XX $XX.X per the million the or you, Thank per was XXXX second second per in for $XX.X share income the $X.XX million last quarter $X.XX Peter. million to share Net

on was second XX.XX%. and the assets equity during quarter ratio XX.XX% on return efficiency the X.XX%, return was our was Our

the X.XX%, points up income a quarter first from basis year. XX the second on million quarter from quarter up quarter four points margin reported million quarter net and same the up million, quarter $X.X from interest second from up for interest in Net the $XXX.X the $X.X second basis was basis was the Our and last year. first XXXX of last

As B compared $X.X the conversion million quarter the for mortgage Non-interest during Adjusted income lower and income a recorded Mary items distribution. low-income non-interest XXXX. There Visa and a a will discuss of first Non-interest in of the quarter credit the later, investment second significant XXXX quarter and the second $XX.X quarter non-interest included decrease income in Class quarter. service of million XXXX banking in previous of XXXX income million largely totaled this million previous during the in of compared in $XX adjustment a provision income $XX.X with we of housing sale charge, million quarter from $X.X with last Non-interest no change year the charges. income the second in was negative resulting decline the to in were to related million included quarter due same ratio. year. the in $X a

million second the expect previous year. with year. quarter We the $XX.X and last Non-interest of in expense $XX be second the compared same million in half million million in income per $XX.X the quarter non-interest over to the totaled of approximately quarter quarter $XX.X XXXX

reduction annual an to well rate in tax XXXX, increased a expense no approximately non-interest included federal there items wage result merit to significant our results hour the share for the of increase of second $XX minimum in during as as value $XXX,XXX and Although quarter as were $XXX,XXX the increases. the the

million, $X.X in non-interest As million, severance and payroll-related $X of included of XXXX of expenses quarter $X of expense seasonal million. reserve first the reminder, a a legal

For and the The XX.XX% first to be second quarter quarter of $X to effective the adjustment same of we investments. in tax the of housing quarter effective the rate our above and rate our the to tax expenses. Currently, expect with The XXXX a previous rate expect XX% XX.XX% XX%. quarter for expenses X.X% during XXXX year. XXXX last in due we effective tax of lower year about full X.X% XXXX the low-income the to favorable was remainder was million XXXX, to for be XX.XX% compared between

of which a the $X.X was end XXXX, and securities. million were quarter $XX.X total of As The quarter last basis duration year. decreased growth of investment million the purchased $X.X second XX portfolio was quarter, of duration the points. comprised million the during was the the years. the years We treasuries total down X.XX the primarily the amortization and quarter, the reinvestment loan second of of The result securities during portfolio during in portfolio in $X.X from in same held-to-maturity $XX.X available-for-sale million the second years, the our a Premium of was XXXX, X.XX X.XX was second to quarter and SBA billion. previous positive a at differential quarter portfolio of of duration quarter

is to and growth the our single-digits. as flat remainder upper remain to the be of we Deposit planned consumer deposits. and offset fairly our For may mid XXXX, in deposits expect expected public remain time by in runoff growth commercial growth loan to

the Tier and of XX.XX%, second Our X shareholders' $X.XX leverage ratio capital end to quarter, billion ratio was was the X.XX%. Tier at X our our equity increased

million. XXX,XXX shares between XXth at dividends of of net total During an third the $X.XX quarter for and quarter, cost and of the July paid cost additional And XX,XXX finally, $X.X total Board we second XXXX. We declared dividend July Xnd for of or out common million repurchased $XX.X a and $XX.X repurchased our a a million. stock shares of XX% income

Now, I'll turn Sellers. call Mary the over to

Mary Sellers

$X $XX.X of annualized, net XXXX, or Comparatively, at $XXX,XXX year. million of down for and end at down At charge-offs year-over-year. asset strength $X of loans while and quarter $XXX.X to quarter charge-offs annualized leases quarter as of period, the and average loan million the quality from the and of quarter period required of end were from the $X.X the $X.X quarter, and end net XXXX, quarter million for unfunded $X.X more at quarter million XXXX. second outstanding. Dean. XXXX X.XX% in Thank at million mix of basis the second unchanged the million due XX the and second basis one down period of quarter or $XX.X at XXth, allowance end million. loans provision reserve quarter year-over-year. the the commitments over compared assets and million in economy allowance totaled for you, days basis down was this ratio recorded allowance and XXXX Net included linked $X.X total second points or $X.X the total mortgage linked or as for or credit the Non-performing XX lease of leases million with $X for quarter, loans the $X.X million the at to modified accruing of the charge-offs we period of the past first which of were The given Loans end the customers X.XX% the the net $XX.X company's million XX the points of our and second loans total a second in loan X.XX% The second million more total and past million assist of still XXXX. five were well end the Residential due down quarter charge-offs $X.X from loans last June quarter. the totaled or not the quarter, the of the annualized. growth. end million for point of million of accounted for at The end first loans Restructured of interest in of previous reflects X.XX%, and the days non-accrual losses continued second Hawaii or was $X.X million the $XX.X the the in quality the of

our as next years, over Accordingly, several exiting mix calibrating while products ease. West based and those to past disciplined from markets and to well-positioned continue And we're I'll the serve approach lending, call loan the to Hawaii back focused Peter. markets years. turn with continuing our maintain our Great the now performance. to several see greater volatility structures we experience optimize credit our levels through on our We and upon leverage Pacific underwriting we move continue to customers adjusted as to the to Recession, remaining strategically loan we've

Peter Ho

public and It Hawaii's quite compared and sectors, estate unemployment national continues to performance economy Thanks prices. healthy pipeline due strong construction June in real remains the perform to the tourism Mary. well both X.X%. level. to was Hawaii in in continued industry, rising Statewide low The private

continues visitors year. from record levels grow Our last of to

Real us days first single-family estate and XXXX single-family last our for X.X% the The market, the the Median strong was days first X.X% the months median increased today Thanks the last of home joining For was XXXX, year. of and to remained visitor half a the four price visitor XX to a Oahu, your first U.S. of period of the a months of questions. and compared May, Hawaii's spending the inventory XX.X% for median half markets, increased through during months home home increased the for end to Months compared three the price on again at first same of compared a days condominium. year. five six and condominium happy visitor during respond XXXX. months months to also Japan, a for the period growth strong sales total quarter in Inventories continues condominium. for XXXX, now single-family same U.S. with with arrivals and of and XX X.X% of reported X.X of all increased Canada XXXX. primary on remain for be five East, Year-to-date West, largest first during we'd tight. market

Operator

comes with Our Ken Zerbe from Instructions] [Operator Morgan Stanley. first question

Ken Zerbe

can that affected may guess picture of you in it. Okay really have didn't the exposure. an do Island by mention you address think exposure But be thanks. don't terms Thanks. volcano; volcano? I not big just you Big of have I or lot may the just the you of a obviously

Peter Ho

do. We

right, you It's You're Mary, of that? amount. give a Ken. don't scope us why a small

Mary Sellers

Sure.

$XXX,XXX. been loans which destroyed proceeds and awaiting We have Actually have those two four claims been insurance we're filed. from the of loans mortgage that total have

$XX,XXX at that, exposure. end So, have we'll the in about of

We of the At filed. in destroyed. end of $XXX,XXX four for exposure. home equity $XX,XXX eight have waiting that, those have a of exposure; also We're have been Claims were insurance in loans, total proceeds. we'll

So, the total $XXX,XXX. be will about

Ken Zerbe

thing you're destroyed, that are that about insurance one there the Got Or such related quarter come -- And talking that zero you. covered after by the to do credit you was to you is insurance? fully were in loss yet those?

Mary Sellers

but and after No proceeds. credit no -- loss credit quarter this the loss insurance

Ken Zerbe

Got you.

Okay. expecting driving that? the Perfect. were of then you I are Where in to elaborate they sounded going, it continue public heard deposits et public or fund you right, just terms Thanks. cetera? on you time decline. that? And to public just funds, roll-off the Could what's like the if or Like

Peter Ho

book Sure Yes. billion time -- public the in -- overall deposits. The public is Ken. $X.X so our

part we've has smallest deposit to public better this our that of simple just overall $XXX pretty at don't of segment is we have high. million. So, ratio the kind the down for that for loan-to-deposit And year, that it's that time X% liquidity given of our particular portfolio a have money And bringing spending segment our rate-wise. pricing been is The the been the need down really in point needs, this base. that given -- darn reason be we to and

to a And allowing -- so to we've result, as flow that been come down.

Ken Zerbe

much. very you Thank Okay.

Peter Ho

Yes.

Operator

question with comes and Sandler Aaron Deer from Partners. O'Neill next Our

Aaron Deer

Hi, guys. good morning

Peter Ho

Hey Aaron.

Aaron Deer

earning of the I balance guess following assets lower. up been perspective, that kind sheet little have from a on average drifting

target of as what that earning for do mix, -- improving it quarters you're costs? growth an happen towards mind it's in you have over earning given you asset obviously, seeing about the As and loans. been few with kind think lending funding opportunities But in idea shifts see versus funding want the kind of to next asset you terms of what

Peter Ho

we all constrained a Yes. I our lending base. from from feel guess standpoint, don't Aaron, deposit at so

that are levels. X% year-on-year. even We're running consumer deposit I space. is with the in driven our in rate ratio loan-to-deposit earning The space We We're and quarter. segment. Those are time that grow So, the both as opportunity higher assets deposit over environment Ken in that. seeing challenge begin that growth to, Again, to particular, actually through think overall XX.X% be in real and deposits. nice up -- let's going this total public commercial to public there's mean in really alluded an by

public growth and asset So, and levels. not we surprised that got that's would $XXX eat to million to going time. overall left deposit see in number be therefore, I into earning overall halve

So, kind bit close going might deposit that than I short-term, on we the work I yields to guess one be as less we the in growth is impaired opportunity. ultimately we're these money. time public share that's guidance single-digit which X% lower a year of see through getting deposits or beyond But

our this point. it's for at So, just too bailiwick rich

Aaron Deer

where heading higher dollars liquidity a earning it's you couple are I but the we should which if you quarter? guess increase of So, than overall I some better call assets I down, But these, see each that excess to mix income? strengthen are net expect still should can thoughts call of see, you would as on bleed front? asset kind of it, interest a What directionally, off guess continue coming margin. be that would getting it, million earning your

Peter Ho

in flattish to the of to, don't describe I expect to going again, net would going levels. I mainly probably assets down. be going deposit and would be increases I interest forward Yes. that the modest going It's that's due -- yes, terms the But earning it way is income, in some continue to that. believe is

Aaron Deer

there was been or quarter continue prior $X to drift down to level adjustment around around the Visa to The -- that that Okay. that in value And had it B. should on we Is million. this expect quickly the just then run quarters? where back it might

Dean Shigemura

to that primary ended amount the reconcile we up Aaron, settle on Yes. used with has money Visa that about actually. basically that -- the -- just -- where was lawsuit to is

Class Class one -- the from there that thing. Class will expenses stock So, to that stock. time. that B are benefit trade will A. is that do B of kind And a the that's stock we maybe a to good with us that that's a well. as B is today I some our stock by the annually A, allow improve that also anticipate term early will million which to What next until the Visa actually of of should year. as converts or though profile couple last That carrying Visa our piece, dollars reclassify That That associated end from to wouldn't to expense year freely longer see seeing down

Aaron Deer

it at And through it, you would that sales? be just if gains the take A on losses kind Okay. or guess, marks I on then point, would of or valuation

Peter Ho

Exactly.

Aaron Deer

questions. Okay, my great. Thanks very much. taking I appreciate

Peter Ho

Yes. Sure.

Operator

question next comes Rabatin Our Piper Brett with from Jaffray.

Brett Rabatin

good Hi, everyone. morning

Peter Ho

Hey Brett.

Brett Rabatin

payoffs a upper know that I then in you the the just about kind predicated guidance if and expected C&I or ask was that just mid you linked first to going noticed the loan But on there either about Wanted on I was mid thinking level high of were to growth just talk And about of estate don't and of if little I single-digit. to quarter outlook lower kind what drives hoping could forward? commercial outlook to that. is single-digit maybe real payoffs that C&I, some was portfolio.

Peter Ho

Yes.

of bit -- The basis million a the X.X% to We payoffs. this was a down linked attribute about weaker was million we'd the basis. $XX to growth what C&I be It linked as yes, Brett. looking So, that out, pointed this $XX quarter about on is year. you on a

in purposes. simply was to those frankly, chose was in we re-up loan competitive that in structural facilities, situation. -- that So, for those not that a loans were It

of opportunity quarter. to of exactly of or loan hate think actually a about happened The to little think portfolio have million largely some well. continue pretty down. is of we're still down going payoffs probably we for the up the frankly, it result And have then CRE, little was Home continue because movements quarters, still to which a seeing about end. business. it's its as is a the has that been industry. that's do I past that as a in continue growth off, for other moving to coming will this you fundings growth book leasing, X.X% know, has consumer So, mortgage that we like from anticipate there. quarter. to [Indiscernible] bit, forward. say in equity, probably indirect, that's, what call flat. we talk bit mortgage, at nature going entire the has nice so We're winding But but stability Construction to as see I'd had segments base in the that consumer to quarter. par couple to off right in that more but C&I it $XXX resi Residential is as perform there on down moving quarter We the to been forward, a

So, representative all think growth-wise at quarters. quarter forward for several we're of it was next all, moving and okay probably what loan the us an in I looking over

Brett Rabatin

Okay. it? And there the to fair with commentary like or managing points the around depending continue of it sheet, cost that would move a balance your magnitude Is the other the basis and are the margin few change. dynamics that could shift mix funding on up all impact might seem

Peter Ho

the game That's plan.

Brett Rabatin

Appreciate Great. Okay. color. the

Operator

Our comes next from Bohlen question Jackie with KBW.

Jackie Bohlen

everyone. morning good Hi,

Peter Ho

Jackie. morning Good

Jackie Bohlen

you that early about just on I point doing at color time. provide able and color I in this if any might in we're be but know any for game provide this a Mary, can one, you're bit what you prepare the little CECL to wondered to

Mary Sellers

would -- of We've validation. done point, last we year all fairly with group explore also Sure. had appropriate the to developed and a as through was representatives we've consultant. that us the At data approaches. We've the be feel work and consultant they're we of gotten that external that hired other across approach. Well, accountants We validate on well an done and representatives us we've what plan detailed. as company think pretty this comprised have -- an external a feedback is based help helping we from that our good working

position in we're position and implement move a in forward time. think good I well be in So, good to to

Jackie Bohlen

would several a And more that bit next your you guess probably over little get the with Okay. quarters, information as I continue we'll process.

Mary Sellers

Yes.

Peter Ho

obviously, a that, it's would it's I Jackie everyone. And add a process process, new for Yes. new

we for air the in still portfolio as is up a awful our really ago as which coming lot of cut But through of went call is analyzing has Great industry. real quality a where look just they what through the of as is which, And see gone we we as lot end as into dent it, a So, not side, historical work durable categories to now. we today, of or at FICO look a has improvement it dynamics bit from versus, rate, what higher have And loss the exposure, scores, the some decade consumer credit is XXXX proved up our an we at stand were back through on Recession, into be monitored certainly our fact, in a downturn. in loss a pre-crisis. and on XXXX

is pretty the the portfolio. know darn what I feel little don't quality be. ultimate CECL to we premature overall for So, good that. about But say going that a of would I the It's amount

Jackie Bohlen

discussed in the one would for included me. that of that color. from I you that that comment that conversion savings for that's it, someone have shares that? Okay, one I A, would the Thank into expense The but else, And B Visa the excellent think might been earlier, assume just your growth -- was potential you additional last you quick not it that's the made regarding you, it get Peter.

Peter Ho

growth? In the expense

Jackie Bohlen

The to into doesn't that potential right? Yes. -- the X.X% X.X%, consideration, take any reduction

Dean Shigemura

It's a contra-revenue item.

Jackie Bohlen

Okay. Never mind then.

Thank Okay. you.

Peter Ho

Okay.

Operator

Ebrahim Poonawala Our comes next from question BOA. with

Ebrahim Poonawala

guys. morning Good

Peter Ho

Good morning.

Ebrahim Poonawala

deposits, $XXX based on happen to million in Peter go on that coming the XXXX? I up -- you with XX%, down is mentioned all Just likely the could in wanted -- as as the much maturities follow-up to

Peter Ho

right marketplace It's terms picking we higher-quality Ebrahim. maturities, shooting on of we're particular and based really what would really We're not market. consider on in in where seeing it's of landing in that XX-XX based we're be kind now what up to the No, funding.

forward of And I and fall over that million figured as period time, half. extrapolated so the just could a much that by $XXX as

Ebrahim Poonawala

to that growth also you did you deposit low And is single-digits, that, that ex expect would say be right?

Peter Ho

commercial, then that's what rate single-digit would space, And larger moving kind I which our meant I was we're that of public seeing anticipate in forward. in low we're through at I to think our and time Actually, the what kind say bleeding least this deposit of growth once be are consumer to segments.

Ebrahim Poonawala

we look local of the of are terms half in funds in like commercial, year bit something talked consumer seeing where competition the or is to getting more about just and Like that you like the expect terms a rate more And aggressive Understood. first the you this where absolute fed competitors little a back likely of despite we there. rate? are half

Peter Ho

Yes.

see deposit segments, terms in public -- of is There general competitors or we've that be in that we of the amount is space reflects year-on-year segment most between. actually now The fact the that think disciplined think consumer. of I well. the there and fair of right competitiveness brokerage in in a actually may probably consumer I national the generated clearly, book in that is kind public deposit competitive. that growth as In most time we Commercial X.X%

discipline on we're up; the year-on-year basis. good in call the I a And least at that's have think we on commercial So, still X.X% serving front. markets it,

our overall So, for and pretty the you're market are at. are XX% in depends think, base, looking competitive the that deposit the I holding really markets, core deposit our And well. landscape most commercial which part, of consumer on

Ebrahim Poonawala

a margin frame we that cost and should every asset guess, expansion Dean, we the the for to frame addition what moving margin mix loans of saw towards next think if rate the the quarters points in about earning higher like of and And I and -- terms if four just means on we getting in basis expect deposits, us, of incremental follow-up can Understood. is question. you're -- this hike the expansion rid the over couple for rate quarter, of margin what you that? sensitivity

Dean Shigemura

The on income -- very the in interest expecting are margin at the we modest does -- this rate Yes, and net every point, increases increase side. us we help margin.

forward, going that can margin if the as steepening material with the I So, we're believe going in more get that's in both we in a funds to interest fed the raise income. a rate, much increases, where coupled get curve well as net

Ebrahim Poonawala

what it. margin in three But without of Got XQ is repeatable much? of is to we terms basis saw four the in points that steepening or expansion in curve too

Dean Shigemura

It I would will say. Yes. range, be that around

Ebrahim Poonawala

And into where do next we in little kind tapering last, in than when things it. getting where just of Or feels expect start steam terms loan look you like can wondering one go you kind of And XXXX? XXXX it -- XXXX, like economic like tourism I'm you we Peter. a off just given losing in is commercial's signs look slower if recovery. in of seeing into cycle slowing are strong, the where things year? bit Got sort seems It to down. mentioned And I things a sneak think, you are stage you are at but the of growth, as are if to

Peter Ho

frankly, I a it's it's Well, I think a little Ebrahim. factors, think couple -- of of

growth mathematics loan So, hand, had of into commercial had story constructive this one the the part very construction what a a the plays right? lending. been think bit, I on

up that kind down a million And of $XXX and here. forward be so We're in back. as now flat and bit that's call level to move to that million-ish, it, we quarter $XXX the at we'd topped second anticipate sliding

there's mentioned fair mortgage a I of commercial space. activity amount still think I the as -- in earlier,

think to remaining that The best. we that is So, -- there's there. view stable be going expansion is that's at book our opportunity C&I

I getting and the the deeper we're think probably structures cycle more marketplace, than frankly shallower. that are credit in in feeling we're aggressive

conservative forward. little as more So, to we're move a get bit probably we going

that's think going to for I of a us. bit So, be headwind a

hand, off So, speaking. that I really but I economically XXXX I a to meaningful level, a deeper But moving in are ability experienced economy cycle particular, that bit which think could from that bit we standpoint, in at the reduction forward. a grow, standpoint, maybe will the and but little credit cycle space say other a is to any the represents getting we've impair on structure what wouldn't our lending begin I flattening say, would C&I think to high we likely of tighter,

Ebrahim Poonawala

for Thanks taking my questions. Understood.

Operator

next Hunsicker from Laurie question Our comes Compass Point. with

Laurie Hunsicker

hi. morning. Yes, Good

Peter Ho

Hey Laurie.

Laurie Hunsicker

we could verify go to Dean, said. I you just Wondered if to wanted back something deposits. just

that your at look right? the we if that X% million public you So, costing deposits, I time hear $XXX Did was in quarter?

Dean Shigemura

rates over in are the current The That's that we what are at stated. market X%.

Peter Ho

is book That's what that us. bearing what not costing market's That's the right now.

Laurie Hunsicker

Got it.

you that do Okay. And is not deposits you disclose? have a those or cost of something

Dean Shigemura

that past. We've disclosed in not the

Laurie Hunsicker

savings around. Your wondered were basis about in savings just your your about thinking commentary up be the were How give now quarter. seven. that? should thinking How the cost us some and forward? you be and if then we going Both items now talking Okay. just is line six about could up we those your I'm And points. up should

Peter Ho

I think continue that we'll part, consumer fronts. and deposit Laurie, we're generating to see creeps commercial with up the book, the front for we're satisfied probably as pretty up, we've down going say on that than commercial to funds as I'd the front. the pricing been most -- faster betas consumer well our But moving the on

lag I appropriate. think least. would I to the be is going think, probably, at hope We but higher, So,

Laurie Hunsicker

held look the last then And I pretty CDs, as few quarters. stripping Okay. at all just your core constant deposits, out it's so

occurring growth How you that see deposits $XX.X thinking that be do growth? we core Your have been billion. how or should about

Peter Ho

an Well, organization. of become emphasis it's the

what's to So, obviously, I difficult When as deposits. rates competition. And deposits. think the to zero, up, funding I wasn't tougher happened is of think is, industry. get true move those and were generate as this more maybe it rates -- and there's It's

what we effort we're think find the you more hot are identified you right? doesn't, a rate And one. And into where exactly like out, I holding a what in high rates relationship we've But you all throughout number your that quality. quality and marketplace. environment two, out put now, deposits it, number look that. of kind quality will. they're pockets higher So, strategies are, represents they in retain to to deploying zero, if when find right deposit We're And need

Laurie Hunsicker

Okay.

then you respect your Big exposure, us on that with Can thoughts approaching Ken you Okay. exposure And you're respect of asking to with of And just kind district loan then what to as Thanks. just we you the with exposure volcano Island last Puna total and the around lines this how us with your -- any in what forward is provisioning maybe question. share what piece? potentially loss is share along just just have was is? the loan total and loan go just your can

Mary Sellers

degradation million. and it's about look But which Sure. million. Well, that. inundation the asset now, $XXX Island our $XX.X of our look is broader quality Pahoa It's across we're really total about not about we've if exposure on portfolio. and the talked -- Pahoa, X% within Right we've If any at Puna, island. talked Big we at we seeing it's metrics the about zone,

seeing we're fact, improvement measurements. In across key

be isolated pretty seems to one just area. to that it So,

a at material this to be there point, doesn't seem So, impact.

really build Of a be but we're reserve to right monitoring, not course, around that. we'd need now, the seeing

Peter Ho

down exposure Pahoa Pahoa, than magnitude even some to just the scale Big isn't million, volcano really isn't if said? concept the either. what the the And Yes. I of what is, you really which for exposure Island degree the you larger $XX is to discussion. is a risk to, it's mean, give took potential what, relevant we But

Mary Sellers

Yes.

Peter Ho

one around is Yes. issue contained that's two But zone a areas, pretty and real lava number. and the

Laurie Hunsicker

That's helpful. Thank you.

Peter Ho

Yes.

Operator

with comes question A. from D. Jeff next Rulis Our Davidson.

Jeff Rulis

morning. Good

Peter Ho

Jeff. Hey

Jeff Rulis

tell could products sort -- just the Peter, I under you brought the, of the as returns your market had back product if elsewhere. early that -- think you you've us of or about parked kind that money relaunch as of the how the received

Peter Ho

Yes.

So, it's very very, actually early.

not is current that acceptance can of offering, market this broad getting thing So, I Bank share in are guess the that you a is our at only we're product. from our Hawaii point I existing which customers money that with

success strategically, us. at issues that to climb, that into of early So, run lack for we really product earning point, that existing happening to But clients transition a we short-end or fee this step that talk bit the they're as for about there potentially, fine probably thereof rates stream except the at the to say a And that nice continue little think any the is becomes have, and we that all. product. haven't into to

Jeff Rulis

front? ask to to the early If online on sort mortgage anything I application were another that of product, process, add about

Peter Ho

but that yet, well. is, to continues behind launched distribution locally not nationally behind project go we're in Jeff, obviously well. reality capability that The frankly No, as and

say, a that be frankly, I'd yet embarrassed little we'll not to happy which, though. have there So, very I'm we're capability, to say just

Jeff Rulis

one one, maybe okay. on Got maybe it, granular And kind side, last of the Mary. for credit

balance? end past accruing days, anything but credit, speak benign there to rose subsequent And that that Just to that of due altered XX clearly, quarter anything that? was again pretty

Mary Sellers

a four-month documentation The had temporary did a booked terms. XXth. change in We We $X.X Yes. traveling in mortgage. the Europe. after June were immediately partners commercial million We

resolved. been that's So,

Jeff Rulis

it. Got

Okay. Thank you.

Peter Ho

Okay.

Operator

questions showing this not I'm at time. any further And

Cindy Wyrick

like thank and again, I'd to everyone, of your us today Bank for joining in Hawaii. for interest continued

have today. me any free you additional if or further clarification great of you As feel and a the always, have need to topics we've questions day. contact please Thank on any discussed again

Operator

this presentation. Ladies today's and conclude does gentlemen,

have disconnect day. now may wonderful You and a

Bank of Hawaii (BOH) 23 Jul 182018 Q2 Earnings call transcript