Latest news with #DeanShigemura
Globe and Mail
01-07-2025
- Business
- Globe and Mail
Bank of Hawai‘i Announces New Vice Chair and Chief Financial Officer Bradley S. Satenberg
Bradley 'Brad' S. Satenberg has been promoted to vice chair and chief financial officer at Bank of Hawaiʻi, following the retirement of Chief Financial Officer Dean Shigemura. In his newly expanded role, he will oversee Bank of Hawai'i's planning and forecasting, financial accounting and reporting, regulatory financial reporting, corporate taxation, and the overall budget and forecast for the company. This thoughtful leadership transition has been the focus of long-term and intentional planning. To prepare for his new role and ensure a smooth transition, Satenberg served as senior executive vice president and deputy to Shigemura since he joined the bank in July 2024. Shigemura will remain with the bank as a consultant through June 2026, providing further continuity and strategic financial counsel. With over 30 years of extensive experience in the financial services industry, Satenberg is a seasoned professional with an exceptional track record. Prior to joining the bank, Satenberg served as senior vice president and chief financial officer of Luther Burbank Savings and director of investor relations for Luther Burbank Corporation in Los Angeles, managing finance and accounting for the publicly held financial institution since 2018. Over the course of his career, he also served as executive vice president and chief financial officer of 1 st Century Bancshares, Inc., and managing director and deputy chief financial officer of Imperial Capital Bancorp, Inc., both in California, as well as several other leadership roles in various organizations. Satenberg earned his Bachelor of Business Administration degree in accounting from the University of Texas at Austin.
Yahoo
22-04-2025
- Business
- Yahoo
Bank of Hawaii Corp (BOH) Q1 2025 Earnings Call Highlights: Strong Net Interest Income Growth ...
Net Interest Income: $125.8 million, a 4.6% increase on a linked basis. Net Interest Margin: Expanded to 2.32%, an increase of 13 basis points from the fourth quarter. Period-End Deposits: Grew 7.3% annualized to $21 billion. Period-End Loans: Increased 1.1% annualized to $14.1 billion. Net Charge-Offs: $4.4 million, or 13 basis points annualized. Non-Performing Assets (NPAs): 12 basis points. Allowance for Credit Losses (ACL): $147.7 million, with a ratio of 1.05% to outstandings. Non-Interest Income: $44.1 million, adjusted to $44.6 million after non-core charges. Expenses: $110.5 million, including $2.8 million of seasonal payroll taxes and benefits. Net Income: $44 million. Earnings Per Common Share: $0.97. Return on Common Equity: 11.8%. Provision for Credit Losses: $3.3 million. Tier 1 Capital Ratio: 13.9%. Total Capital Ratio: 15%. Common Share Dividend: $0.70 per share for the second quarter of 2025. Warning! GuruFocus has detected 3 Warning Sign with BOH. Release Date: April 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Net interest income and net interest margin improved for the fourth consecutive quarter, with net interest income growing by 4.6% on a linked basis. Credit quality remained strong with low net charge-offs and non-performing assets, indicating a stable loan portfolio. Bank of Hawaii Corp (NYSE:BOH) maintained its leading position in market share within Hawaii, demonstrating strong brand performance. Deposit funding costs decreased for the second straight quarter, contributing to improved financial performance. The bank's capital levels have improved substantially from a year ago, providing a solid financial foundation. Economic conditions in Hawaii remain stable but are impacted by the Maui market, which could affect future performance. Non-interest income was slightly lower due to market volatility and reduced customer derivative transactions. Expenses increased in the first quarter, partly due to seasonal payroll taxes and benefits, which could pressure future profitability. The bank faces potential risks from tariff-related impacts on tourism, particularly affecting Canadian and Japanese markets. Loan growth outlook remains uncertain due to market volatility and economic conditions, which could impact future earnings. Q: Is the target of a 2.50% net interest margin by year-end still attainable, and how do deposit costs factor into this? A: Peter Ho, CEO, stated that achieving a 2.50% net interest margin is possible if the current trends continue, particularly with the management of low-cost deposits. Rate cuts could further aid in reaching this target. Dean Shigemura, CFO, added that market volatility could impact this goal, but there is a path to achieving it. Q: What was the end-of-period deposit cost, and how does it compare to the average? A: Dean Shigemura, CFO, reported that the average deposit cost was 1.6%, with the exit rate slightly above that level. The repricing of time deposits is expected to lower rates further. Q: Have there been any changes to the qualitative assumptions or scenario weightings in the allowance for credit losses (ACL)? A: Dean Shigemura, CFO, confirmed that there were no changes to the qualitative assumptions or scenario weightings. The economic outlook for Hawaii is slightly worse than before, but no adjustments were made to the qualitative factors. Q: How is the tourism sector performing, and are there any impacts from tariffs? A: Peter Ho, CEO, noted that tourism has held up well, though Canadian traffic might be affected by tariff sentiments. The U.S. domestic market remains strong, and a flat year for visitor numbers is anticipated unless economic conditions worsen or tariff sentiments escalate. Q: What is the outlook for loan growth, and have there been any disruptions due to economic uncertainty? A: James Polk, Chief Banking Officer, stated that the outlook remains consistent with previous guidance of low single-digit growth. The commercial pipeline is solid, and there has been an increase in mortgage and HELOC applications. However, market uncertainty could impact these projections. Q: Can you explain the increase in net charge-offs this quarter? A: Bradley Shairson, Chief Risk Officer, explained that the increase was due to a single loan charge-off of $1.1 million, previously in nonperforming assets. Overall, consumer charge-offs were slightly down, and the trend remains positive. Q: What is the impact of new swaps on the fixed rate percentage of earning assets? A: Dean Shigemura, CFO, indicated that the new swaps slightly reduced the fixed asset mix to about 55%. The swap portfolio is used to adjust the fixed rate exposure as investments mature. Q: Have any projects fallen out of the loan pipeline due to economic concerns? A: Peter Ho, CEO, and Bradley Shairson, Chief Risk Officer, mentioned that while there are ongoing discussions among developers and contractors, no projects have been canceled yet. However, the uncertain environment could lead to quick changes in pipeline trends. Q: What is the current status of the forward starting swaps, and how do they affect margin modeling? A: Dean Shigemura, CFO, detailed that $100 million of swaps will become active in the third and fourth quarters of this year and the first quarter of next year, with $200 million in the second quarter of next year. These swaps are staggered to manage interest rate exposure. Q: How are you managing potential tariff impacts on clients? A: Bradley Shairson, Chief Risk Officer, explained that the bank has analyzed potential tariff impacts, focusing on industries like auto dealers and retail. The direct tariff exposure is nominal, with only 4% of the loan portfolio potentially affected. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
