Bank of Hawaii Corporation

Good day, and thank you for standing by. Welcome to the Bank of Hawaii Corporation third 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 speaker today, Chang Park, Senior Vice President and Vessel Relations Director. Please go ahead.

Good morning and good afternoon. Thank you for joining us today for our third quarter 2024 earnings conference call. Joining me today is our Chairman and CEO, Peter Ho, President and Chief Banking Officer, Jim Polk, CFO, Dean Shigemura, Chief Risk Officer, Brad Sherrison, and our Deputy CFO, Brad Sattenberg. 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 Investment Relations link. And now, I'd like to turn the call over to Peter.

Thanks, Chang, and good morning or good afternoon, everyone. Bank of Hawaii is pleased to report another solid performance in the third quarter of 2024. Net income and the diluted earnings per share increased notably on a linked basis. Net interest income and NIM expanded for the second straight quarter. Fee income grew and operating expenses fell on a linked basis. Loans and deposits grew in the quarter, capital levels improved, and credit quality remains pristine. As is our custom, I will spend a little time highlighting market conditions in the islands. I'll then ask Brad to provide a few comments on credit quality, and Dean will provide further detail on our financials. The balance sheet performed well in the quarter with higher spot loan and deposit balances and stable average balances. Capital levels improved across all measures on top of the meaningful step up in Q2. Deposits continued to perform well, up 2.8% on a linked spot basis, and up modestly on an average length basis. We are pleased to again hold the top deposit market share position in Hawaii for 2024, as measured by the FDIC Annual Summary of Deposits. Both cost of interest bearing and cost of total deposits continue to track well, well below peer medians. Unemployment in Hawaii continues to track at 2.9%, well below the national average. Visitor arrivals continue to be impacted by lower Maui arrivals, but remain elevated for pre-pandemic levels. Same can be said for REVPAR. Wahoo residential real estate continues to trend stable, with median sales prices up modestly for both single-family and condominiums on a year-to-date basis. Median days on market remain below 30 days. Now let me turn the call over to Brad to discuss a few trends on credit.