BOH - Earnings call transcript Q1 2022 | Bank of Hawaii Corporation

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Bank of Hawaii Corporation First Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. There will be a question-and-answer session after the prepared remarks [Operator Instructions] I would now like to turn the call over to your host, Janelle Higa.

You may begin.

Janelle Higa

Thank you, Kevin, and good morning, good afternoon, everyone. us joining for you today. Thank

Risk with On Chairman, Dean morning Chief our this and the Shigemura; CEO, our Officer, call President Financial Peter is Chief Sellers. me Ho; Mary Officer, and our

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

well be are turn During And earnings a website, referencing as the Ho. as the release our like the A presentation and boh.com, we'll Peter to available of copy to call, over now, I'd Relations. release. slide our call under presentation Investor on

Peter Ho

Thanks, interest Hello, Janelle. We Hawaii. appreciate everyone. your of in Bank

XXXX to for start good the a was quarter organization. First

you on the you turn call over the and the thoughts, in on over share turn our broader perspective the I'll about here to call some we'd with then I'll As is and we'll side, talk take to the financials custom, then concluding I'll be to to some give and thoughts questions. close islands. then happy then some the your Dean with to Mary credit market

be with would shaping So appear what stable, things the is beginning call and improving economy, up, to I it.

unemployment Here, to X.X%. now our unemployment you see down numbers,

probably and think there, Statistics. put I Labor think, think I when of you by clearly, for look the numbers the out obviously, changes I in adjustment, of are at UHERO has some forecast that Bureau the those of due impacted

ever really data, bunch in. the an aggregation ourselves the at the in its look pretty call all, that out level unemployment new in is When performance highest high-frequency see university the you that what puts some which a of that environment find all is economic think up they to we rating -- pulse, a of their also good high-frequency of So, I data that wise. you'll

hit just of weeks, numbers dip was now. you frame XX And points summer the those hit. some with prior that Delta to couple of ratings of and XXXX past reference, before as a So Delta the then Omicron of peak in took then our give XX

moving So, at Switching nice estate. there. and real to hopefully to back, from a forward high up be

Here, real least market, our well. continues estate the you see on that Oahu, at do here market, to primary quite

that well point in 'XX. So then And see at also, very therefore and to to price pervasive still points, sooner, see I to case the much in likely or levels, as continues that in you as anytime high too shortage of single-family certainly not both environment elevated wouldn't inventory inventory price expect not the be change much condominium. erosion see

story. Next slide, side, switching over an really visitor this is to the evolving

X.X% dragging -- XXXX X% And very but East pre-pandemic you remember, from marketplace that's U.S. XXXX. reflects market are The marketplaces. as quite an down consumer. news this February. XX%. two there. entire only are other and but Japanese XX%, was when year-to-date see is of the bad tale down the Interestingly, down Canada both is can West down a the Spending from look spending arrival and of chart are XXXX the isn't from spending numbers You levels arrivals, closer But that really levels U.S. this international in arrivals see is to U.S. are down, XXXX, getting the down. XX%, patterns, through arrivals, down point told at up XX%, levels. clearly we And year-to-date still drag you, were XX% down down I robust the

and year-to-date February other in offset market up Japan, is spending U.S. by international. So Canada U.S. spending, somewhat islands XX% our the and

is pandemic to has imagine, the off on which, through performance, finish been visitor as can RevPAR the you look starting to really quite up. side, Just difficult

last slightly versus plus off plus versus actually January minus X.X% beginning the XXXX XXXX, was X.X% versus months XXXX. RevPAR So, levels. was to back December, at X% nicely state in the and in three February bounced

in segment welcome the So a is the good tail all, in a amount year. reasonable happening of of what's a towards visitors like performance look we marketplaces given of end Japanese back and we forward visitor various the what optimism for -- fair kind see in case fair hopefully a -- all hopefully as this the

me over let share call to that's to for now turn Dean Dean? my it So open. the And financials. the

Dean Shigemura

Thank Peter. you,

million loan by waivers million growth core fourth total interest and and and was PPP The X.X% driven and included and by the net billion portfolios growth income loan and strong or loan core interest and both $X.X million fourth rates. and by X.X% quarter. loans. to PPP PPP across income. an million quarter linked in PPP charge both quarter's or $XXX,XXX loans loan interest one-time in $XXX or included of quarter PPP remained in X.X% the interest quarters, by interest first from loan net Net first $XX income balances of interest was for loan million, at the reduction Growth in commercial was Adjusting income year-over-year a mortgage X.X%, respectively, net million, the fees income consumer one-time $XX increased linked up quarter. declined of $X.X adjustment Our for strong continued $XXX.X the end in million at $X.X Core linked $XXX.X loan first quarter. X.X%. quarter deferred quarter the rising $X.X the quarter, million

basis income, PPP X.XX%. increased excludes which interest margin, to interest net X by quarter core points linked Our loan

affords regional and a source loan remains base available a local low-cost us below and stable liquidity of readily This ratio deposits that well to is flexibility. low, peers. provides fund strong of pricing and loan-to-deposit Our growth

deposits banks Hawaii's Hawaii five is make driving Hawaii. top to this XX% within the up our the our leader market commercial market study of Bank the franchise. deposit nearly government as data, are recognition deposits composition and deposits market. and deposits positioned predominantly strength the consumer operating accounts. demonstrates deposit customer state exceptional XX% of The One public this brand relationships. and deposit remaining the strong well position customers from share is core factors and deposit are of of strong of of in base the X% unique the According of of FDIC our in further with

are comprising While analyzing XX% with balances deposits. our when XX% -- analyzing accounts, total deposit deposits of our products, and checking core of checking savings nearly in

of $XXX us point costs our million in points X X while deposit quarter increased Total quarter. by core base provides decreased deposits and in to rising rate X.X% accounts, customer solid balances with a basis linked Our million consumer the commercial or deposit flexibility environment. low-cost basis $XXX and in

continuing while grow During deposit period, last rising at balances. rate the demonstrated approximately XX% pricing discipline we to beta

XXXX, was earnings $XXX.X first are our remains common interest medium- million income recent first impact $X.XX. per share to core balance rates in and and interest and long-term net Net interest income were increases rates, from on having and net sheet asset the was quarter a Our rates. changes The of to income positive in we the will margin. sensitive continue higher already million. $XX.X benefit In quarter in

driven was net interest income, growth loan rising loan rates. $XXX.X current by and interest quarter, which earlier, strong million income linked discussed million, interest core PPP up $X.X As excludes

quarter for provision credit fourth totaled first in offset income primarily seasonal million $X this the the Also charges included As for quarter. which conversion $XX.X service losses fees. negative and revenue of Mary gains other Non-interest a losses. $X.X change a fees, one-time will million Visa higher a ratio, was a increase deposit first in $XXX,XXX the due as and The discuss transaction in securities and and by Class was recorded in negative from of reported investment later, was item to quarter. the in of million revenue decreases income non-interest quarter's we contra the B partially swap adjustment

or in income, addition, recognized flexibility mortgage the a MSR banking recovery In $X.X us more mortgage to the loans. impairment, million afforded hold which we

items, $XXX.X approximately expenses expense payroll $XXX,XXX income expected our the first first due rates through Included the year in made the of we million Included non-interest for the and fees the of an our limits. quarter's expense markets. up lower to innovation down totaled fourth for were incentive to during seasonal maintain $XX carryover first fourth quarter continuing expenses higher quarter. was Non-interest $XXX.X in the a tax to asset million. were discipline mortgage that per in management are $XX quarter. million will be expect expenses to We Adjusting payouts able quarter $XXX.X be and while from the million, and expenses Thus, quarter, $X.X with banking end million benefit investments. interest overall vacation to the quarter's fourth expenses as in $XXX.X from million these million million, normalized annual of lower $X.X first were the in quarter the increased benefit our quarter's additional related charge one-time employee income

full and together increases employees X. of the as the for $XXX one-time XXXX, April adjustment expenses cost increased annual $XXX merit pressures will of increase totaled For million, million inflation approximately to expenses. be overall year began The living which have X% on

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

unchanged quarter. interest first X.XX%, margin the fourth in net the was Our quarter from

ongoing margins linked Excluding increase the X.XX%, was points basis core total in margin reflects increase the core loan in an and impact growth of first loan strong rising the income, quarter interest the X PPP of The quarter. rates.

for continued the continued rates. we previous per X of in basis quarter growth of from margin, points guidance the improvement X X from our loan the an per NIM basis interest and to PPP improvement core expect of quarter. X Excluding of higher is remainder XXXX to interest impact increases This income, loan points with

and strong support Our capital level growth. positioned remains well to is continued

rates the an healthy of portfolio, were available-for-sale total respectively, well-capitalized requirements. the a equity. and impacted adjustment Our book reduction and common with tangible our our a XX.XX% capital regulatory Higher AOCI resulting above in ratios negatively excess in XX.XX%, and interest and minimum CETX valuation

capital capital However, no on distribution this our our had capabilities. regulatory impact and

out common of million $X.XX repurchased of quarter, a of a stock common dividends. in $XX million share first total the million. We $X income dividend second shareholders preferred of dividends to per in stock we Board shares or declared the for XX% of XXX,XXX and finally, net quarter During common our paid XXXX. And for available $XX

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

Mary Sellers

strong driven leases delinquent linked of totaled loan or $XX.X a performance X Net Loans million average XX more with was the first to are million estate in up first annualized. and points remained by been had for And The the Credit in first both year-over-year. of XX with financial basis X criticized or lease remained the average continued million consistent with quarter. or point of loans production quality basis year-over-year. improvement very underwriting. conservative assets loan-to-value This Dean. of million was points $XX weighted X loan Thank total stable and down of of $X.X just basis $XX.X XX%. in of X.X% XX basis in assets and and and performance real those impacted our of last our the COVID. to 'XX at secured by days or customers continued year. Non-performing the basis All quarter XX exposure who points most points period XX down quarter basis loans, reflective in or basis points, while approach strong non-performing charge-offs quarter points you, were compared fourth the and

estate real XX% was quality the with leverage. For quarter, commercial modestly of production secured

combined FICO a weighted production and mortgage commercial production average equity was production remained very weighted to of and production values weighted first of home of a of equity production scores and and conservatively XX%, had for XX%. our of leveraged. XX Our XX% secured in consumer Residential quarter's had consistent. loan-to-value respectively. and loan-to-value strong real had again, consumer estate, home lien. the construction average weighted average XX%, all loan-to-values XX% mortgage average loan production was with

metrics. Importantly, of the look to when production, loan quartile at see our we credit bottom solid we continue

Peter. of for turn monetary allowance with $X.X of we risk losses our The of recorded This a PPP our and reflects uncertainty charge-offs, market, allowance $XXX recent this losses improving the risk for reduced reserve to our As balances. negative the million, unfunded or credit with profile, down million negative quarter. for $X.X provision events at a the policy. outlook for the to period. to was Dean commitments while included downside loans geopolitical credit back potential now decrease in provide call million associated and tighter $X.X net economic or leases and the The total and $XXX,XXX allowance net of I'll credit coupled the million the was of for end which linked provision forecast the to continuing X.XX% noted, quarter, credit X.XX%

Peter Ho

Mary. Thanks,

thoughts forward. for a asset just see extremely conclude, an are well to on So We're believe little positioned environment. moving see ourselves we where We few evolving sensitive. we we as what

As -- the of locally interesting five operate in headquartered deposit market. an Dean marketplace mentioned, local represent top we the XX% where players

think XX%. a well. position of that Bank that a loan-to-deposit I we're, is within ratio this credit standpoint, weighted five participants equally marketplace. has the position Mary in described, those terrific of interesting good is From of Hawaii as as very average

current loan are We well strategy of with have balanced a in is portfolio a a our we've diversified, for weighted XX% ensures our and average XX% loan-to-value markets known high-quality collateral our familiarity. continued securities portfolio, well decades. and of loans has XX%. And has position

core standpoint, and our savings. mentioned, demand as with liquidity in being Dean incredibly nature and either a from XX% or deposit XX% is consumer base Finally, commercial

mentioned, through the As anticipate our some model cycle. market-leading betas, And Dean of industry. of historically would deposit generates returns operating also have we we which capital the in the highest deploying

we're now, happy to your So questions. take

Operator

[Operator D.A. with Davidson. Rulis Instructions] comes from Jeff question Our first

Jeff Rulis

question on a Just buyback. the

just the on to general but quarter, was that where kind on an linked appetite. want up interested give think in been in of the you it's just check us update Just or buybacks? higher macro, AOCI on consideration It past

Dean Shigemura

quarter-over-quarter. Yes, it about is $X up million

for of capital remaining to repurchases. capital available generally and what's continue full dividend. our then for will plan, growth We share the implement which our is And course,

could of on that's And the will think environment believe the evolves capital on it given going important the continue plan. but in to repurchase outlook. the part our it how to volatility change I we'll continue forward, We environment, depend depending rate shares,

Peter Ho

Yes.

the So, But you've to quarter. similar what seen probably environment recent I think in to intent understand. Jeff, our in you continue subject, what's the is would rate most to with obviously repurchase happening

Jeff Rulis

UHERO Yes. sort consideration baked seen that, quarter of of real kind end? And a we on kind mentioned in economic first Peter, question Sure. in that forecasts lagging you are In Mary just second would like be recapture maybe provisioning for it the as in and the Does of provision the of words, March we've looks that. time assume improvement, other reflected if can some other words? quarter

Mary Sellers

yes. Exactly. Exactly,

Jeff Rulis

loan circle of deposit you deposits, and on -- both the betas Okay. the cycle? cycle, last back last Got it. in of guess the And islands is, trying side. uniqueness on out cycle, touch behavior the the last My upgrade kind last both up to deposit just just could deposit one, local about rate maybe, were to talked how -- the loan lower. how participants if pricing on pricing and played But you Peter, loans

Peter Ho

the didn't mean, Yes. we I in marketplace. about was I deposit would betas that think had the front say a pretty deposit stable. XX% and beta, we the I best have

reason that's islands. last I deposit reasons not bit the and as between how different mismatch look right? the liquidity get there's of -- why loan-to-deposit I weighted a a of cycle. we and part the the assets a the in stability, in to front -- funding there's forward, -- lot of on So, been those are the And marketplace Jeff, for in ratio dynamics betas, the one the loan is deposit amount than mentioned good Interestingly, a you top So five the I'd of part always say, the think

deposit then to on anticipate So change I wouldn't therefore, much the front.

of side. always because see competition lighter has driven it's XX years. rising, the where really front, think kind rates environment. really going be been be XX volume I the versus interesting loan income that just side will kind kind sanguine on call margins people see But said, But there. to or volume will We'll rate past, always yield of pick a people through to asset very up funding side been are position as the the the I it's to heavy be On it, like though. There's -- to-date with years up, of the maybe X to picking more

Operator

with Sandler. Liesch question comes Piper next from Our Andrew

Andrew Liesch

going really there growth can that. loan anything mortgage point the on retained to that more continues how specifically the it with your have questions bankers lenders you in at may maybe Just what's or like sounds Just has side -- strong your that to for on driven given on been be that's this? market and is your driving it now. strong, quarters you But several

Peter Ho

sure. Yes,

consumer XX.X%. up about category, all, a C&I of X.X%, just So in was both was construction saw commercial, we bit was every But well, first flattish. CRE and up growth

economy, quality one, taking are beneficiary having many and So then that capitalized in an the staff then increased us the to, clearly, And years people activity allowed pandemic. many, same lot of healing of might care time. the consistency of that that's staff we're we've and long clients; awful imagine better I side, out there team a marketplace, you coming think for on clients just a for managing a commercial ensure generally a been out got the two, having as of

And out, that peak to execution becomes more its possible. begins opportunity head so as much

starting our think, even And We're of into traction good on SimpliFi side, see programming. up really our movement I to front. platform. our combination really with great on great seeing a indirect marketplace. there, diversification that was On not just traction challenges the online channel attractive it's -- a inventory quite resi the fee was we I to resi kind home side held general, equity little consumer as quarters. up, more as But side, I on yes, think mortgage probably in of was earlier production the as think I'd up, bit the indirect say, We're of, marketing was

of things a deliver Andrew. helped of outcome, So to that's really combination kind that

Andrew Liesch

I know how then up And quarter? pipelines color. but far are trending things still so how early, it's are great now? this shaping That's

Peter Ho

monthly mean entire team. mean, never meeting to pretty I we we're growth. the frothy. stands Yes. growth you is I And loan know. we're pretty now. solid QX consumer pretty we good volatile have Again, pipeline looks definitely good. pretty find and much it's about in. as always now, if because I'd into commercial ourselves anticipated. I a pretty for going the with a right mean, get feeling But that's don't think built But It's pipeline geopolitical getting say environment that's it know core I -- I X.X%

Operator

Poonawala with from question Ebrahim Next of comes Bank America.

Ebrahim Poonawala

guess on maybe expenses. first I one

million to X% mentioned million, Dean year-over-year. or X% up year that's think I full about $XXX $XXX

to we to that's this around the talk Just bank us, investing, areas expenses. from like is perspective sense incremental will investment mean, puts Peter, the you're push an some as it to have feels us and beyond offset pressure we of the forward crisis look going higher saw to financial savings a post spend growth? where takes, year, cost upward and relative Give where of it inflationary what the I be to

Peter Ho

Yes.

slightly We're have last trend, you days question our it? five in view really grown expense investment So XX% years, the over -- at yes, that's expenditures look of lens the maybe -- by the isn't The XX%, if our these higher situation. take just a annually. about

of Company things. So, been like technology categories the the investment e-commerce obviously, has types those growth in expenses of analytics or data or big The marketing and X%. in overall a or

X.X% of strategic, has those to so other in at And deem investment non-strategic kind clip. what areas those be grown we areas, than

investments changing is able do. for we clearly, to the is, changing. other of been And need that in expenditure. and world are we kind every Clearly, consumers who's we've paid the think So, that fact, accommodate to

do the don't Obviously, see we keep kind expenses of challenge other So as at Company I rest is, a we the forward, X%, of we of can the environment. think is going inflationary kind was But that's what come I more think CAGR. up. it, that XX% down Ebrahim, to, to go got is will an call meaningfully. not clearly happen sustainable I mean intended that to number move

little of as know, for of growth But X%-ish I And been so, be you, you have a a high in to think rate. annual That, made, environment expense there's but still the bit that going we're out investment tell into built I end. And is land is our Hawaii we some of Bank different think what we're of kind inflationary I'll is on kind good spend to than previously. bloodstream. already just a portion a

going, got of whether so do lot or expense. to it And pre-work upfront of a you to takes platforms, kind lot of a the it's these get that marketing e-commerce

Ebrahim Poonawala

it. Got

So expense think core the to like is helpful, growth a way four that about was percentage Peter. that? thanks, right So

Peter Ho

Yes.

Ebrahim Poonawala

Dean, And do sensitive, about dynamics. they get some basis the of deposit on But which the for deposit year. about -- be rest balances kind inherently as competitive on more money -- of X to the you might deposit as the subset funds either some And points pricing, have per on and mentioned, get on I you color anything or non-core to the can so quarter any think markets provided just maybe of bank, competitors more you maybe think front, a market-related like where see you of leaving going your rate? rate X higher

Dean Shigemura

of and base possibility intent do are -- pretty significant look kind as to and But maintain a us certainly we our also, help for have to That's the at. -- manage is do that there. deposit we customer we our alternatives can trust we plans base deposit we But a area have that continue something balances.

Ebrahim Poonawala

But last to TCE TA to Got some I still ratio, influencing the impact tangible, And look do we near-term think we X.X, you're in transitory. look one at going capital noise? XQ when have is When question. it. the any you impact EOCA levels. mentioned management? Or AOCI the the look realized does at And as I of buyback TCE to that past you just similar modest at terms

Dean Shigemura

perspective, to. pay from And AOCI It's capital look that regulatory the look that. the we at. highest primarily impact not We that ratio maybe we at something the doesn't It's that certainly attention ratios.

mind. ratios change, now, a what at. that a significant If of kind it's that's But of So top certainly right there's be different could capital we actions. regulatory look are there just some

Operator

comes question KBW. Motta from Kelly Next with

Kelly Motta

X NIM your just to is quarter. core first The new points basis of X guidance a on

was assumptions that? the that a quick if into wanted clarification Just or forward curve any going incorporating rate

Dean Shigemura

curve. expecting less rate rates It's currently. X.XX and not It's the assumes it curves than But predict the the XX-year. slightly X.X% on a certainly -- And it's actually entire funds to would Fed forward rise. about

Kelly Motta

it then really, look It And bit. core turning loan a mean strong. Great. really I was does came like board, to the C&I growth, across down little

Just and you an wondering, utilization versus -- they've if are could been they update you to provide on and rates where when think if are going they us and historically where what start normalizing?

Mary Sellers

They That were as look was XX from XX% probably to around XX XX% just down quarter. range to They this to really tend customers liquidity. last quarter. episodically access

Peter Ho

downside Yes. to I represent don't utilization of don't that think think I an or are kind they either upside outstanding. rates -- risk

So, of normal point. this at pretty it's kind

Operator

Our Point. next from Hunsicker Compass comes Laurie with question

Laurie Hunsicker

to a -- go of Is interest around wanted leaves I to just the number a million you a to number? that we PPP quarter if wondered, could with I for this net $XXX,XXX. $X.X understand back have number? is that so income right respect there Just there moment. fees, Or was better

Dean Shigemura

$XXX It's the remaining about actually Company's... on million

Laurie Hunsicker

$XXX million.

Peter Ho

Yes.

Laurie Hunsicker

Great.

occur Okay. probably of about And in Or the are how to quarter? expect that? you you thinking June that most

Dean Shigemura

a I in kind balance part maybe of another of second part income our statement. and of enough it's so, less our some stepped we'll less would where say, what's and the say, year, probably -- a sheet. half run And roughly quarter. would the of but stragglers of material it's remaining third not becoming off the meaningful then down would half I in balance sheet -- throughout of have and and But it's that

Laurie Hunsicker

your forward Kelly think Great. But well. you then a fabulous of you bit could succinctly basis drill you Maybe and your it that terms Okay. down I about bit what least than is your were. points, fabulous help is are little on us in because their my a asset-sensitive? that a they understand deposits just and you are it help trying help X about little by just because basis wondering about will a XX quarter us every really we since be at if costing a Can to to sort and Ebrahim, just looking little more questions. looks think think XXXX, the light? of Can I'm pretty If bit you I forward in increase, this to And low X bit little think deposit they're as more math, us betas rewind like? just less points per touched with think so more looking it back guide for curve?

Dean Shigemura

the -- long end of it month, it's XX how every in If is just because were nuanced, short more reprice. compounds that's XX, that's increase assets per the about point on to a Fed per it's the little it's go but bit up $XX,XXX end longer-term front, but about Fed nature they the only $XXX,XXX about the core, curve the So, funds so basis And month. per $XXX,XXX curve. the of -- as

Peter Ho

floaters we're Laurie, coming the in and little towards our bias of that maybe shorter in a too environment. to kind be inversion probably were as invest The other bit an portfolio. is, think was investing securities And even now in about to to with down, going trend, factor, rates longer that

hopefully, yield going it's higher initial a path. lower a but give the us to yield, So, down

Laurie Hunsicker

understand And the with Great. Okay. then wanted non-interest helpful. I income, two That's just to things.

think I the that Visa get adjustment that included right, you in loss securities one-time I negative had mentioned a Did $XXX,XXX B conversion? was Class your for

Dean Shigemura

Yes.

Laurie Hunsicker

Okay. And on bit can more? expand little you a that just

Dean Shigemura

Yes.

B a ratio. when conversion sold Visa on So we our back swap the took we shares, Class

the part $XXX,XXX. to cost we as trades did, was that the And ratio. us that reset Visa of reset So

So have going it's a then And reset. quarter. that we forward, one-time about per $X.X million

Laurie Hunsicker

then... Perfect. Okay. And

Dean Shigemura

in line. that there's why was bump That a

Laurie Hunsicker

sense. a of makes lot Right. It

income. within Okay. non-interest about And little can also then your you talk bit a

just on friendly consumer become And to could this and you more plans where it? fees? that And we specifically you're any If quarter? remind little your a overdraft What on bit are about you NSF would fee income? where are how us impact were you thinking see for and fee

Peter Ho

are for quarter? the numbers what So the

Dean Shigemura

Yes.

about OD and is For million in $X is fees. total, $X $X million, quarter, of million NSF fees the which it's

Peter Ho

now, think -- We right in for level note, Laurie. Yes. charge we're an is looking And true We're thing of topical I and fee marketplace. would -- One obviously, I this that's I don't our this account a at practices. the banks most discussion accounts. say, our would very on most

So basically, fee-free. they're

banks So, some there different something of thinking bit the little through think that's consideration we're larger and I a out wise. than

the kind dramatically so, And as more say as in just well And a being right in guess practices aware I clearly, nothing space to at our at direction, have client NSF think evolved NSF. now. to OD over point. activity But the direction there's I last supportive we're decided in pretty that Maybe lot of looking the We're thing we're always continue our evolve both I going would of that. years that is, several but this particular, and past around to really of base. of

Laurie Hunsicker

That's Okay. helpful.

one then your this side. loan production And quality is for last Okay. question. Mary, And you. I love

think great, and it's the appreciate I I detail. credit all

loan ex-PPP us think So, still reserve a X.XX, go question. of loss it yes, thinking that to in you a terms loans help Can your to looks provision? at about of line us loan COVID where may reserves like about there's chunk normalized

Mary Sellers

were about we points total expect day in move at to one was really at which it where XX would pre-COVID, I coverage. to basis back

Operator

Our Motta with comes from question next KBW. Kelly

Kelly Motta

the on to just rate quickly full to good for XX% still I ask, year? Dean, is wanted rate tax the a use

Dean Shigemura

full is XX% still year. for rate a good the Yes,

Operator

call like over back turn remarks. showing time. to our any not closing host this for the at to any I'm further questions And I'd

Janelle Higa

so or everyone. Please to and on your for us Thank today. any topics Bank clarifications any in feel need the if have joining additional today you discussed interest for free continued everyone thank me, I'd you to much, contact of of Hawaii. further questions like

Operator

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

You wonderful a may and disconnect, day. have now

Bank of Hawaii (BOH) 25 Apr 222022 Q1 Earnings call transcript