Bank of Hawaii Corporation BOH delivered an earnings surprise of 8% in third-quarter 2020. Earnings per share of 95 cents surpassed the Zacks Consensus Estimate of 88 cents. However, the bottom line compares unfavorably with earnings of $1.29 reported in the prior-year quarter.The company’s third-quarter results witnessed a fall in expenses which reflected prudent cost management. Also, higher deposit balances supported the results. However, contraction of the net interest margin (NIM) was a major drag. Further, a substantial rise in provisions was a headwind, causing investors’ disappointment that lead to share-price decline of 1.9%, following the release.The company’s net income came in at $37.8 million, down 27.4% from the prior-year quarter’s figure.Revenues & Expenses Down, Deposits RiseThe company’s total revenues declined 3.2% year over year to $165.9 million in the quarter. However, the figure surpassed the Zacks Consensus Estimate of $162.5 million.The bank’s net interest income was $124.2 million, down marginally year over year. Net interest margin (NIM) shrunk 34 basis points (bps) year over year to 2.67% on low rates and elevated levels of liquidity.Non-interest income came in at $41.7 million, down 10.3% year over year. This downswing primarily resulted from a decline in fee income due to muted customer and visitor activity related to the pandemic.The bank’s non-interest expenses declined 10.4% year over year to $89.9 million. This fall mainly reflects lower salaries and benefits and other expenses, partly negated by higher net equipment costs and professional fees.Efficiency ratio came in at 54.22% compared with the 58.55% recorded in the year-ago quarter. Notably, a fall in the efficiency ratio reflects higher profitability.As of Sep 30, 2020, total loans and leases balance remained unchanged from the end of the prior quarter at $11.8 billion and total deposits improved 1.8% to $17.7 billion.Credit Quality: A Mixed BagAs of Sep 30, 2020, allowance for credit losses jumped 86.8% year over year to $203.5 million. In addition, the company recorded provision for credit losses of $28.6 million, significantly up from the prior-year quarter’s levels. However, non-performing assets declined 13.9% to $18.6 million.Also, net recoveries were $1.5 million, compared to net charge-offs of $3 million recorded in the prior-year quarter.Capital and Profitability Ratios DeteriorateAs of Sep 30, 2020, Tier 1 capital ratio was 12.09% compared with 12.33%, as of Sep 30, 2019. Total capital ratio was 13.35%, down from 13.44%. The ratio of tangible common equity to risk-weighted assets was 12.02% compared with the 12.10% reported at the end of the year-ago quarter.Return on average assets was down 41 bps year over year to 0.76%. Return on average shareholders' equity was 11.01% compared with 16.02%, as of Sep 30, 2019.ConclusionRising deposit balances will likely continue supporting Bank of Hawaii’s top line. In addition, controlled expenses are anticipated to keep stoking the bank’s bottom-line growth. Nevertheless, rising provisions pose a key concern. Also, lower interest rates are likely to hurt its NIM.Bank of Hawaii Corporation Price, Consensus and EPS Surprise Bank of Hawaii Corporation price-consensus-eps-surprise-chart | Bank of Hawaii Corporation QuoteCurrently, Bank of Hawaii carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other BanksFifth Third Bancorp FITB reported third-quarter 2020 adjusted earnings of 85 cents per share, surpassing the Zacks Consensus Estimate of 59 cents. Also, results compared favorably with the prior-year quarter’s earnings of 75 cents per share.M&T Bank Corporation MTB reported third-quarter 2020 earnings surprise of 5.3% on controlled expenses. Net operating earnings per share of $2.77 beat the Zacks Consensus Estimate of $2.63. The bottom line compared unfavorably with the $3.50 per share reported in the year-ago quarter.Huntington Bancshares’ HBAN third-quarter 2020 earnings per share of 27 cents outpaced the Zacks Consensus Estimate of 25 cents on impressive top-line strength. The bottom-line figure was 21% lower than the prior-year quarter’s reported tally.Just Released: Zacks’ 7 Best Stocks for TodayExperts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.These 7 were selected because of their superior potential for immediate breakout.See these time-sensitive tickers now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MT Bank Corporation (MTB): Free Stock Analysis Report Huntington Bancshares Incorporated (HBAN): Free Stock Analysis Report Fifth Third Bancorp (FITB): Free Stock Analysis Report Bank of Hawaii Corporation (BOH): Free Stock Analysis Report To read this article on Zacks.com click here.