Bank of Hawaii Corporation

Good day and thank you for standing by. Welcome to the Bank of Hawaii Corporation first quarter 2024 earnings conference call. 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 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Cindy Warrick, Director of Investor Relations. Please go ahead.

Thank you, Marvin. I'd like to welcome everyone and thank you for joining us today as we discuss the financial results for the first quarter of 2024. Joining me today is our CEO, Peter Ho, CFO, Dean Shigemura, our Chief Risk Officer, Brad Sherson, and our IR Manager, Chang Park. 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 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. Both of these are available on our website, boh.com, under the investor relations link. And now I'd like to turn the call over to Peter. Peter?

Thanks, Cindy. Good morning or good afternoon, everyone. We appreciate your interest in Bank of Hawaii. Bank of Hawaii produced another solid financial performance for the first quarter of 2024. NIM, while down two basis points for the quarter, showed significant directional improvement. Fee income and operating expenses were steady for the quarter. Credit quality remains excellent. Loans and deposits were stable for the quarter. Equity and capital levels grew. I'll start off with some commentary on funding and then touch on broader market conditions here in the islands. I'll then hand the call over to Brad to discuss credit. Dean will then share with you some more granular color on the financials. Let me begin by touching a little bit on the deposit side. As you know, as many of you I think know, we consider our deposit franchise to be our crown jewel, built methodically over our 127-year history, one relationship at a time. This space has served us extremely well as market rates and betas have moved up over the current rate cycle. As most of you know, OY is maybe the most unique deposit market of the country with five locally headquartered banks holding 97% of the state's FDIC reported deposits. You can see here we have amazing tenure in our deposit base across multiple customer segments. This has enabled us to maintain great stability and balances across what has been a bit of a tumultuous period for the industry. Our deposit franchise has also enabled us to deliver total cost of deposits well below industry norms. The increase in total cost of deposits in the quarter of seven basis points is the smallest increase since the second quarter of 2022, helping us to meaningfully improve the trajectory of beta. Equity levels remain abundant. The employment picture in the islands remains strong and continues to outperform the broader market. The visitor industry continues to be impacted by the tragic Lahaina fires. Year-to-date February, total visitor expenditures and arrivals were down 1.9% and 0.6% respectively. These levels ex-Maui, however, were up much greater levels at 6.4% and 7.6% respectively, reflecting continued growth in U.S. mainland visitors ex-Maui. and significant growth in the Japan market, which is up 57.8% on expenditures and 84.3% on arrivals from last year. REVPAR remains steady. Residential real estate on Oahu remains stable, with median prices up moderately for both single-family homes and condominiums. And now let me turn the call over to Brad.