Bank of Hawaii shuffles branches; earnings fall 27.2% in 4th quarter – Honolulu, Hawaii

Honolulu, Hawaii 2021-01-25 21:24:00 –

Bank of Hawaii Corp. today announced a major change across its branch network as it set a new record for assets and deposits and ended a pandemic-stricken year.

The state’s second-largest bank also showed solid loan growth, but missed analysts’ fourth-quarter earnings and earnings estimates. Bank of Hawaii spent an additional $ 15.2 million on loan loss reserves over the last three months, bringing the total to $ 117.8 million for the full year. Banks have reduced their reserves in the last two quarters as the state’s economy shows signs of a slow recovery.

“Bank of Hawaii faced many challenges throughout the year due to the COVID-19 pandemic,” said Peter Ho, president and CEO of Bank of Hawaii, in a statement. We finished 2020 with solid financial performance. ” “This year, our disciplined approach to cost management has allowed us to continue to significantly advance our strategic initiatives.

But Mr Ho admitted that banks see the economy recovering slowly.

“It’s clear and well documented that Hawaii is a bit behind the rest of Hawaii due to unemployment and a recovery in outlook in the short term,” he said in a conference call. “It will take some time to spool here. So I think it will have a small impact on our provisioning and therefore a reserve hold. It is important to note the provisioning trajectory. Therefore, the previous quarter (banks). It’s down pretty wisely since (when I booked $ 28.6 million). Still, $ 15 million is a significant change. But what we’re looking forward to is the possibility, if possible, if possible. You have the opportunity to continue that trajectory and prevent other crazy unexpected things from happening. “

Bankoh’s fourth-quarter net income fell 27.2% to $ 42.3 million, or $ 1.06 per share, but missed analysts’ consensus forecast of $ 1.11 per share. A year ago, banks made $ 58.1 million, or $ 1.45 per share. Revenues were down 4% to $ 164.8 million, embarrassing analysts’ estimated $ 171.6 million.

Deposits increased 15.4% year-on-year to a record $ 18.21 billion, while loans increased 8.6% to $ 11.94 billion. Assets increased 13.9% to a record $ 20.6 billion.

This year’s Bankoh revenue was $ 153.8 million ($ 3.86 per share), compared to $ 225.9 million ($ 5.56 per share) in 2019.

Bankoh’s chief risk officer, Mary Sellers, said most of the bank’s postponements began to return to their normal payment schedule in the fourth quarter, with a total of 428 million postponed customer loan balances as of January 21. He said it was the dollar, or 3.6% of the total loan. This was down from $ 1.5 billion at the end of the third quarter, or 13% of total lending.

Bankoh said it will reopen six additional branches throughout the state as part of the next phase of the “Branch of Tomorrow” initiative. The branch has Hanapepe and Kapaa on Kauai, and four grocery stores. In addition to Safeway’s Maui Lani branch, which reopened on Monday, the Beretania and Ewa Beach branches on Oahu’s Safeway and the Puainako branch at the KTA Superstore on Hawaii will all reopen on February 22.

According to banks, the “Branch of Tomorrow” format provides an open and flexible floor plan for discussing advanced banking needs and digital convenience, such as easy-to-deposit ATMs with cardless cash and free Wi-Fi. Provide to customers.

Bankoh said three new “Branch of Tomorrow” projects are underway.

The new Mililani branch is scheduled to open in mid-March and will integrate the three branches of Safeway Mililani, Times Supermarket Mililani and Mililani Shopping Center. The shopping center branch is currently open and will close one business day before the new Mililani branch opens.

The Waialae Kahala branch is currently under construction and has been completely rebuilt in the same space where the grand opening is scheduled for the end of April.

The new Hiro branch is scheduled to open in the fourth quarter.

In addition, Bankoh will open a fourth branch this year. It will be an in-store branch scheduled to open in late April or early May when the construction of a new branch on Safeway in Kona is completed.

The bank also said the remaining 12 in-store branches would remain completely closed. The closure will save $ 6.1 million in temporary costs, but save $ 5.1 million annually. Bankoh noted a dramatic shift in customer behavior, with face-to-face branch transactions dropping significantly from pre-COVID levels, while digital banking is skyrocketing. The pandemic is accelerating the transition to mobile and online platforms, card usage and digital payment options.

“As an integral business, we are committed to servicing the community and proactively responding to the evolving needs of our customers under different circumstances through different options,” Ho said. I have.

The branches that remain closed are: Big Island — Hilo Branch of Safeway. Kauai — Safeway’s Lihue branch. Maui — Kahului and Pi’ilani branches on Safeway. Oahu — Safeway’s Hawaii Kai, Kailua, Kaneohe, Kapahulu, Kapolei, and Mililani branches. Kamehameha and Mililani branch offices in Times Supermarket.

In November, the bank announced that it would invest $ 5 million in a 10-year sponsorship of the University of Hawaii athletics, including changing the name of the arena to “SimpliFi Arena at the SimpliFi Center.” The bank has also set up a $ 100,000 donation scholarship fund in the name of SimpliFi. Bank of Hawaii’s SimpliFi is a simple online lending program for banks.

Bankoh maintained a quarterly dividend of 67 cents per share. March 12 will be paid to registered shareholders at the end of business on February 26.

After the earnings announcement, the company’s share price fell $ 2.49 (3%) to $ 81.62.

Bank of Hawaii shuffles branches; earnings fall 27.2% in 4th quarter Source link Bank of Hawaii shuffles branches; earnings fall 27.2% in 4th quarter

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