Bank of Hawaii Corporation

Good day and thank you for standing by. Welcome to the Bank of Hawaii Corporation fourth quarter 2022 earnings conference call. At this time, all participants are in a 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 1-1 on your telephone and you will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jennifer Lamb, Senior Executive Vice President, Treasurer, and Director of Investor Relations. Please go ahead.

Thank you. Good morning. Good afternoon, everyone. Thank you for joining us today. On the call with me this morning is our Chairman, President, and CEO, Peter Ho, our Chief Financial Officer, Dean Shigemura, and our Chief Risk Officer, Mary Sellers. 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 the actual results may differ materially from those projected. During the call, we'll be referencing a slide presentation as well as the earnings release. A copy of the presentation and release are available on our website, boh.com, under Investor Relations. And now I'd like to turn the call over to Peter Ho.

Thank you, Jennifer. Good morning or good afternoon, everyone. We appreciate your interest in Bank of Hawaii. The bank achieved another solid quarter of performance to end the year. Loans grew 2.4% on a linked basis and 11.3% year-on-year, reflecting balanced growth across our corporate, commercial, and consumer businesses. Deposits were down 1.3% from the prior quarter, but up 1.3% from a year ago. At quarter end, our total deposit beta was 11.5% cycle to date, reflecting the diversified, granular, and seasoned nature of our deposit base. By segment, our deposits are 50% consumer, 42% commercial, and 8% public. Nearly half, or 47%, of our consumer and commercial deposits come from accounts under a half million dollars in account size, and 73% of our deposits have a tenure of 10-plus years or more with Bank of Hawaii. Expenses were well controlled. Credit quality remains excellent. The turn on average common equity was 21.3% for the quarter. As is our custom, I will now walk through local market conditions and then hand the call over to Dean, who will delve deeper into the financials and then Mary Sellers will touch on credit for the company. At that point, we'd be happy to entertain your questions. Now moving on to slide three, you can see that the economy, and namely employment, continues to improve in the islands. November's state unemployment rate was 3.3%, marking the second straight month that it has outperformed national unemployment as a whole. Prior to October, state of Hawaii unemployment had been higher than the national average for 29 consecutive months. The visitor sector continues to perform well. While arrivals remain down from pre-pandemic levels as a result of the continued lag in the international and in particular Japanese visitor segments, overall visitor days are nearly at par to pre-pandemic levels as visitors are visiting longer overall and the mixed shift of visitors is tilting towards traditionally longer staying segments. On slide five, you can see that RevPAR is performing well ahead of pre-pandemic levels which has helped push overall visitor expenditures 40% higher than pre-pandemic levels on a year-to-date basis. Finally, values in the Oahu housing market remain stable, with the median home price of a single-family home running flat at $1 million in December, while condominium prices were up modestly in December at $503,000. Inventory levels remain tight despite a meaningful slowdown in sales. And now let me turn the call over to Dean. Dean?