Bank of Hawaii delivered solid results for the second quarter of 2023. Total deposits grew in the quarter, and we enhanced our liquidity position substantially. with cash and immediately available credit lines. Credit remained a strength with NPAs and net charge-offs of eight basis points and four basis points respectively. We recorded earnings per share of $1.12 for the quarter. Debt interest income was negatively impacted by higher interest rates and attendant higher borrowing costs. Fee income performed well during the quarter and expenses were controlled both on a reported and normalized basis. Given the environment, expense management will continue to be a particular focus of ours going forward.

Jul 24, 2023 / CEO / receipt, needs a key / Peter Ho, CEO | earnings call 2023-07-24 | transcript 9dc288f1-5c37-44ee-8547-a4839a7d533f | chars 1955-2664 | segment 1

The visitor industry continues to improve with the month of May at 91.6% of 2019 levels by arrival and 110.6% of 2019 levels by visitor spend. Year-to-date numbers are 85% and 102.3% of 2019 arrivals and spend levels. This performance comes despite less than half of the international market, traditionally 35% of our visitor market having yet to return as of yet. Obviously, strong support from U.S. visitors is making up meaningfully for the shortfall. REVPAR levels across the state are actually ahead of 2019 levels as demand for travel, and specifically travel to Hawaii, remains high.

Jul 25, 2022 / CEO / receipt, needs a key / Peter Ho, CEO | earnings call 2022-07-25 | transcript b53b5b7f-7c5c-4f38-ab00-74b5361afc03 | chars 3154-3744 | segment 3

The visitor industry, as I mentioned, is doing quite nicely. So you see this chart here, really since the relaunch of our safe travels program, visitor arrivals have increased substantively. basically now approaching pre-pandemic levels. Airlift is a great story. In June, actually, we had 1,027,000 seats into the islands, which is a 14.3% increase from June of 2019. And July and August forecasts are even more robust than that. So the airlines are doing their jobs well. Arrivals are looking good. The most recent data we have from the Hawaii Tourism Authority has arrivals at 74% of 2019 levels, so pre-pandemic levels. Visitor days at 83% of pre-pandemic levels and expenditures at just under 80% of 2019 levels. And we have reason to believe that the balance of the summer, June, July, and August should eclipse those numbers as well.

Jul 26, 2021 / CEO / receipt, needs a key / Peter Ho, CEO | earnings call 2021-07-26 | transcript c78e6db9-49ec-4cd5-b07b-3176878ce151 | chars 3170-4010 | segment 3

Yeah, so I think international is yet to bounce back. So what's interesting is we're nearly back to full strength in terms of visitor traffic, and that's without the international market, which historically is called a third of our marketplace. The benefit to that traveler is they are a bit higher spending, so I think that's you know, upside, you know, out there somewhere as the international traveler returns. And then the other piece, at least the visitor segment, is the group business and incentive. And beginning to hear those types of excursions beginning to percolate up again, but as you can appreciate, there's a bit of a lag before we'll start to see that traffic back in. So I think the international and group and incentive is effectively the next legs up for the visitor industry, and I think probably a little bit higher margin product than what we're getting right now.

Jul 26, 2021 / CEO / receipt, needs a key / Peter Ho, CEO | earnings call 2021-07-26 | transcript c78e6db9-49ec-4cd5-b07b-3176878ce151 | chars 17359-18246 | segment 17

The visitor industry, as I mentioned, is doing quite nicely. So you see this chart here, really since the relaunch or the launch of our Safe Travels program, visitor arrivals have increased substantively. basically now approaching pre-pandemic levels. Airlift is a great story. In June, actually, we had 1,027,000 seats into the islands, which is a 14.3% increase from June of 2019. And July and August forecasts are even more robust than that. So the airlines are doing their jobs well. Arrivals are looking good. The most recent data we have from the Hawaii Tourism Authority has arrivals at 74% of 2019 levels, so pre-pandemic levels. Visitor days at 83% of pre-pandemic levels and expenditures at just under 80% of 2019 levels. And we have reason to believe that the balance of the summer, June, July, and August should eclipse those numbers as well.

Jul 26, 2021 / CEO / receipt, needs a key / Peter Ho, CEO | earnings call 2021-07-26 | transcript c78e6db9-49ec-4cd5-b07b-3176878ce151 | chars 35230-36084 | segment 36