Bank of Hawaii CFO sees Q2 margin decline ‘similar’ to what was seen in Q1

Asked on the bank’s earnings call about margin expectations, Bank of Hawaii CFO Dean Shigemura said: "Right now, we’re expecting the Fed to increase rates next week and then possibly another one, but pause from that point on. But when you look at that compared to what the futures are expecting, we’re actually looking at a higher for longer kind of rate environment and then version carrying through to sort of the middle of next year. So based on that, we’re looking at the margin coming down in the second quarter and then really bottoming up towards the end of this year before increasing into the next year, assuming the rates do come down on the short end towards the tail end of 2024." Asked a follow-up regarding where he thinks it will bottom, Shigemura replied: "We’re looking at right now, at least in the second quarter, a similar decline as we saw in the first quarter. And then from there, it will start to grow."