UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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N/A
(Former name or former address, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
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Depository Shares, Each Representing 1/40th Interest in a Share of 4.375% Fixed Rate Non-Cumulative Preferred Stock, Series A |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. |
Results of Operations and Financial Condition. |
On October 25, 2021, Bank of Hawaii Corporation announced its results of operations for the quarter ended September 30, 2021. The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and incorporated herein by reference.
Item 9.01. |
Financial Statements and Exhibits. |
(d) |
Exhibits |
Exhibit No. |
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99.1 |
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99.2 |
Bank of Hawaii Corporation Third Quarter 2021 Financial Report |
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104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 25, 2021 |
Bank of Hawaii Corporation |
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By: |
/s/ Patrick M. McGuirk |
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Patrick M. McGuirk |
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Senior Executive Vice President and Corporate Secretary |
Exhibit 99.1
Bank of Hawaii Corporation Third Quarter 2021 Financial Results
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Diluted Earnings Per Common Share $1.52 |
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Net Income $62.1 Million |
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Board of Directors Declares Dividend of $0.70 Per Share |
FOR IMMEDIATE RELEASE
HONOLULU, HI (October 25, 2021) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per common share of $1.52 for the third quarter of 2021, compared with diluted earnings per common share of $1.68 in the previous quarter and $0.95 in the same quarter last year. Net income for the third quarter of 2021 was $62.1 million, down 8.1% from the second quarter of 2021 and up 64.0% from the third quarter of 2020.
“Bank of Hawaii’s operating results were solid in the third quarter of 2021," said Peter Ho, Chairman, President, and CEO. “Core consumer and commercial loan and deposit growth was strong in the quarter. Credit quality in the quarter remained good.”
Financial Highlights
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The return on average assets for the third quarter of 2021 was 1.07% compared with 1.23% in the previous quarter and 0.76% in the same quarter last year. |
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The return on average common equity for the third quarter of 2021 was 17.08% compared with 19.61% in the previous quarter and 11.01% in the same quarter last year. |
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Net interest income for the third quarter of 2021 was $126.8 million, an increase of 2.7% from the second quarter of 2021 and an increase of 2.1% from the third quarter of 2020. Net interest margin was 2.32% in the third quarter of 2021, a decrease of 5 basis points from the previous quarter and 35 basis points from the same quarter last year. |
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The decrease in the net interest margin from prior year is largely due to higher levels of liquidity from continued strong deposit growth and lower interest rates, partially offset by higher fees from Paycheck Protection Program (“PPP”) loans, deployment of excess liquidity and core loan growth. |
- more -
Bank of Hawaii Corporation Third Quarter 2021 Financial Results |
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Page 2 |
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The provision for credit losses for the third quarter of 2021 was a net benefit of $10.4 million compared with a net benefit of $16.1 million in the previous quarter and net expense of $28.6 million in the same quarter last year. |
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Noninterest income was $41.4 million in the third quarter of 2021, a decrease of 6.9% from the second quarter of 2021 and a decrease of 0.9% from the third quarter of 2020. |
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One-time items in the second quarter of 2021 included a gain of $3.7 million related to the sale of investment securities. |
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Noninterest expense was $96.5 million in the third quarter of 2021, flat to the second quarter of 2021 and an increase of 7.3% from the third quarter of 2020. |
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One-time significant items in the third quarter of 2021 included a gain of $6.3 million related to the sale of property partially offset by $3.8 million of fees related to the early termination of repurchase agreements and $1.2 million in severance. |
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One-time significant items in the second quarter of 2021 included fees related to the early termination of FHLB advances and repurchase agreements of $3.2 million offset by a gain on the sale of property of $3.1 million. |
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One-time significant items in the third quarter of 2020 included a gain of $1.9 million related to the sale of a branch building partially offset by $1.8 million in severance. |
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The efficiency ratio during the third quarter of 2021 was 57.38% compared with 57.47% in the previous quarter and 54.22% during the same quarter last year. |
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The increase in the efficiency ratio from prior year is driven by an increase in noninterest expense. |
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The effective tax rate for the third quarter of 2021 was 24.40% compared with 22.84% in the previous quarter and 20.09% during the same quarter last year. |
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The increase from same quarter prior year is primarily due to higher pretax book income compared to relatively stable tax adjustments and the delayed impact of the TCJA on the deductibility of deferred executive compensation. |
Asset Quality
The Company’s overall asset quality continued to remain stable during the third quarter of 2021.
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Total non-performing assets were $20.6 million at September 30, 2021, up $1.6 million from June 30, 2021 and $2.0 million from September 30, 2020. Non-performing assets as percentage of total loans and leases and foreclosed real estate were 0.17% at the end of the quarter of 2021, up 1 basis point from the end of the prior quarter and the end of the same quarter last year. |
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Net loan and lease charge-offs during the third quarter of 2021 were $1.2 million or 0.04% annualized of total average loans and leases outstanding. |
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Net loan and lease charge-offs for the third quarter of 2021 were comprised of charge-offs of $3.4 million partially offset by recoveries of $2.3 million. |
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Compared to the prior quarter, net loan and lease charge-offs were flat. |
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Compared to the third quarter of 2020, net loan and lease charge-offs increased by $2.7 million or 9 basis points annualized on total average loans and leases outstanding. |
- more –
Bank of Hawaii Corporation Third Quarter 2021 Financial Results |
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Page 3 |
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The allowance for credit losses on loans and leases was $167.9 million at September 30, 2021, a decrease of $12.5 million from June 30, 2021 and $35.6 million from September 30, 2020. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.39% at the end of the quarter, down 11 basis points from the end of the prior quarter and 34 basis points from the end of the same quarter last year. |
Balance Sheet
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Total assets increased to a new record of $23.0 billion at September 30, 2021, an increase of 1.3% from June 30, 2021 and 14.2% from September 30, 2020. |
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The investment securities portfolio was $9.3 billion at September 30, 2021, up 9.2% from June 30, 2021 and 44.8% from September 30, 2020 due to growth in deposits that continued to outpace loan growth. |
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The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises. |
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Total loans and leases were $12.1 billion at September 30, 2021, an increase of 0.3% from June 30, 2021 and 2.4% from September 30, 2020. |
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Total loans excluding PPP loans were $11.8 billion at September 30, 2021, an increase of 2.4% from June 30, 2021 and an increase of 4.8% from September 30, 2020. |
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Total deposits were $20.5 billion at September 30, 2021, an increase of 1.6% from June 30, 2021 and an increase of 15.5% from September 30, 2020. |
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The Company early terminated $100.0 million of repurchase agreements in the third quarter of 2021. |
Capital and Dividends
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The Tier 1 Capital Ratio was 13.47% at September 30, 2021 compared with 13.87% at June 30, 2021 and 12.09% at September 30, 2020. |
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The increase from the same quarter in the prior year was driven by the issuance of preferred stock in the second quarter of 2021. |
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The Tier 1 Leverage Ratio was 7.10% at September 30, 2021 compared with 7.31% at June 30, 2021 and 6.81% at September 30, 2020. |
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The increase from the same quarter in the prior year was driven by the issuance of $180 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A in the second quarter of 2021. |
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The Company repurchased 241.3 thousand shares of common stock at a total cost of $20.0 million under its share repurchase program in the third quarter of 2021 at an average cost of $82.89 per share repurchased. |
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Total remaining buyback authority under the share repurchase program was $93.1 million at September 30, 2021. |
- more -
Bank of Hawaii Corporation Third Quarter 2021 Financial Results |
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Page 4 |
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The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on December 14, 2021 to shareholders of record at the close of business on November 30, 2021. |
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On October 5, 2021, the Board of Directors declared the quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, on its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A. The depositary shares representing the Series A Preferred Stock are traded on the NYSE under the symbol “BOH.PRA.” The dividend will be payable on November 1, 2021 to shareholders of record of the preferred stock at the close of business on October 18, 2021. |
Conference Call Information
The Company will review its third quarter financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawaii Corporation's website, www.boh.com.
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The webcast link is https://edge.media-server.com/mmc/p/3r3nw6ad |
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The toll-free number for the teleconference is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code “Bank of Hawaii” to access the call. |
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A replay of the conference call will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, October 25, 2021. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the conference ID 6897518 when prompted. In addition, the replay will be available on the Company's website, www.boh.com. |
Forward-Looking Statements
This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2020 and its Form 10-Q for the fiscal quarters ended March 31, 2021 and June 30, 2021, which were filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.
Bank of Hawaii Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawaii and the West Pacific. The Company's principal subsidiary, Bank of Hawaii, was founded in 1897. For more information about Bank of Hawaii Corporation, see the Company’s web site, www.boh.com.
# # # #
Bank of Hawaii Corporation and Subsidiaries |
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Financial Highlights |
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Table 1 |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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June 30, |
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September 30, |
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September 30, |
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(dollars in thousands, except per share amounts) |
2021 |
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2021 |
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2020 |
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2021 |
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2020 |
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For the Period: |
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Operating Results |
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Net Interest Income |
$ |
126,819 |
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$ |
123,514 |
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$ |
124,166 |
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$ |
370,902 |
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$ |
376,823 |
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Provision for Credit Losses 1 |
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(10,400 |
) |
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(16,100 |
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28,600 |
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(40,800 |
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102,600 |
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Total Noninterest Income |
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41,378 |
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44,431 |
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41,734 |
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128,779 |
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139,151 |
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Total Noninterest Expense |
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96,519 |
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96,527 |
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89,949 |
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291,911 |
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275,153 |
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Net Income |
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62,053 |
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67,533 |
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37,840 |
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189,535 |
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111,490 |
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Basic Earnings Per Common Share |
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1.53 |
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1.69 |
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0.95 |
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4.73 |
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2.81 |
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Diluted Earnings Per Common Share |
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1.52 |
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1.68 |
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0.95 |
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4.70 |
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2.80 |
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Dividends Declared Per Common Share |
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0.70 |
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0.67 |
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0.67 |
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2.04 |
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2.01 |
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Performance Ratios |
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Return on Average Assets |
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1.07 |
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% |
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1.23 |
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% |
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0.76 |
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% |
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1.15 |
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% |
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0.78 |
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% |
Return on Average Shareholders' Equity 8 |
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15.41 |
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19.17 |
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11.01 |
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17.31 |
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11.08 |
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Return on Average Common Equity |
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17.08 |
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19.61 |
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11.01 |
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18.10 |
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11.08 |
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Efficiency Ratio 2 |
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57.38 |
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57.47 |
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54.22 |
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58.42 |
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53.33 |
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Net Interest Margin 3 |
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2.32 |
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2.37 |
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2.67 |
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2.37 |
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2.82 |
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Dividend Payout Ratio 4 |
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45.75 |
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39.64 |
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70.53 |
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43.13 |
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71.53 |
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Average Shareholders' Equity to Average Assets |
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6.95 |
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6.40 |
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6.93 |
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6.63 |
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7.06 |
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Average Balances |
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Average Loans and Leases |
$ |
11,958,321 |
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$ |
12,096,308 |
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$ |
11,739,785 |
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$ |
12,002,426 |
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$ |
11,510,222 |
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Average Assets |
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22,993,036 |
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22,073,569 |
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19,741,139 |
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22,079,174 |
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19,053,626 |
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Average Deposits |
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20,473,777 |
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19,698,285 |
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17,270,206 |
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19,619,053 |
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16,591,640 |
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Average Shareholders' Equity |
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1,598,076 |
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1,412,924 |
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1,367,756 |
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1,463,566 |
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1,344,402 |
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Per Share of Common Stock |
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Book Value |
$ |
35.30 |
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$ |
34.80 |
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$ |
33.99 |
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$ |
35.30 |
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$ |
33.99 |
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Tangible Book Value 8 |
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34.38 |
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33.91 |
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33.21 |
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34.38 |
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33.21 |
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Market Value |
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Closing |
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82.17 |
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84.22 |
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50.52 |
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82.17 |
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50.52 |
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High |
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87.12 |
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95.95 |
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61.94 |
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99.10 |
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95.53 |
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Low |
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75.68 |
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81.23 |
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48.77 |
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75.65 |
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46.70 |
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September 30, |
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June 30, |
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March 31, |
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September 30, |
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2021 |
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2021 |
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2020 |
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2020 |
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As of Period End: |
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Balance Sheet Totals |
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Loans and Leases |
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$ |
12,072,750 |
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$ |
12,041,378 |
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$ |
11,940,020 |
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$ |
11,793,608 |
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Total Assets |
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22,965,383 |
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22,672,183 |
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20,603,651 |
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20,109,489 |
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Total Deposits |
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20,493,678 |
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20,169,709 |
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18,211,621 |
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17,738,883 |
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Other Debt |
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10,414 |
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|
10,437 |
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|
60,481 |
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|
60,502 |
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Total Shareholders' Equity |
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1,597,109 |
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1,583,531 |
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1,374,507 |
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1,361,739 |
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Asset Quality |
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Non-Performing Assets |
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$ |
20,620 |
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|
$ |
18,974 |
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|
$ |
18,481 |
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|
$ |
18,626 |
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Allowance for Credit Losses - Loans and Leases |
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|
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|
167,920 |
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|
180,385 |
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|
216,252 |
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|
203,496 |
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Allowance to Loans and Leases Outstanding 5 |
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|
1.39 |
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% |
|
1.50 |
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% |
|
1.81 |
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% |
|
1.73 |
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% |
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Capital Ratios 6 |
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Common Equity Tier 1 Capital Ratio |
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12.02 |
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% |
|
12.36 |
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% |
|
12.06 |
|
% |
|
12.09 |
|
% |
Tier 1 Capital Ratio |
|
|
|
|
|
13.47 |
|
|
|
13.87 |
|
|
|
12.06 |
|
|
|
12.09 |
|
|
Total Capital Ratio |
|
|
|
|
|
14.72 |
|
|
|
15.13 |
|
|
|
13.31 |
|
|
|
13.35 |
|
|
Tier 1 Leverage Ratio |
|
|
|
|
|
7.10 |
|
|
|
7.31 |
|
|
|
6.71 |
|
|
|
6.81 |
|
|
Total Shareholders' Equity to Total Assets |
|
|
|
|
|
6.95 |
|
|
|
6.98 |
|
|
|
6.67 |
|
|
|
6.77 |
|
|
Tangible Common Equity to Tangible Assets 7, 8 |
|
|
|
|
|
6.04 |
|
|
|
6.06 |
|
|
|
6.53 |
|
|
|
6.63 |
|
|
Tangible Common Equity to Risk-Weighted Assets 7,8 |
|
|
|
|
|
11.46 |
|
|
|
11.81 |
|
|
|
11.89 |
|
|
|
12.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Financial Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-Time Equivalent Employees |
|
|
|
|
|
2,049 |
|
|
|
2,085 |
|
|
|
2,022 |
|
|
|
2,038 |
|
|
Branches |
|
|
|
|
|
54 |
|
|
|
54 |
|
|
|
65 |
|
|
|
67 |
|
|
ATMs |
|
|
|
|
|
303 |
|
|
|
312 |
|
|
|
357 |
|
|
|
358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Provision for Credit Losses for 2021 includes Provision for Unfunded Commitments and Accrued Interest Receivable, 2020 represents only Provisions for Loans and Leases. |
||||||||||||||||||||
2 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income). |
||||||||||||||||||||
3 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets. |
||||||||||||||||||||
4 Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share. |
||||||||||||||||||||
5 The numerator comprises the Allowance for Credit Losses - Loans and Leases. |
||||||||||||||||||||
6 Regulatory capital ratios as of September 30, 2021 are preliminary. |
||||||||||||||||||||
7 Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. Tangible common equity is defined by the Company |
||||||||||||||||||||
as common shareholders' equity minus goodwill and intangible assets. Intangible assets are included as a component of other assets in the Consolidated Statements of Condition. |
||||||||||||||||||||
See Table 2 “Reconciliation of Non-GAAP Financial Measures." |
||||||||||||||||||||
8 Return on Average Common Equity was revised from 19.60% for the three months ended June 30, 2021, Tangible Common Equity to Tangible Asset was revised from 6.08% for the |
||||||||||||||||||||
three months ended June 30, 2021, Tangible Common Equity to Risk-Weighted Assets was revised from 11.85% for the three months ended June30, 2021, and Tangible Book Value |
||||||||||||||||||||
was revised from $34.02 for the three months ended June30, 2021. |
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|
|
|
|
|||||||||
Reconciliation of Non-GAAP Financial Measures |
|
|
|
|
|
|
Table 2 |
|
||||||||||
|
|
|
|
September 30, |
|
|
June 30, |
|
|
December 31, |
|
|
September 30, |
|
||||
(dollars in thousands) |
|
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total Shareholders' Equity |
|
$ |
1,597,109 |
|
|
$ |
1,583,531 |
|
|
$ |
1,374,507 |
|
|
$ |
1,361,739 |
|
||
Less: Preferred Stock |
|
|
180,000 |
|
|
|
180,000 |
|
|
|
- |
|
|
|
- |
|
||
Goodwill |
|
|
|
|
31,517 |
|
|
|
31,517 |
|
|
|
31,517 |
|
|
|
31,517 |
|
Tangible Common Equity |
|
$ |
1,385,592 |
|
|
$ |
1,372,014 |
|
|
$ |
1,342,990 |
|
|
$ |
1,330,222 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total Assets |
|
$ |
22,965,383 |
|
|
$ |
22,672,183 |
|
|
$ |
20,603,651 |
|
|
$ |
20,109,489 |
|
||
Less: Goodwill |
|
|
31,517 |
|
|
|
31,517 |
|
|
|
31,517 |
|
|
|
31,517 |
|
||
Tangible Assets |
|
$ |
22,933,866 |
|
|
$ |
22,640,666 |
|
|
$ |
20,572,134 |
|
|
$ |
20,077,972 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Risk-Weighted Assets, determined in accordance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
with prescribed regulatory requirements |
|
$ |
12,093,010 |
|
|
$ |
11,614,522 |
|
|
$ |
11,295,077 |
|
|
$ |
11,068,888 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total Shareholders' Equity to Total Assets |
|
|
6.95 |
% |
|
|
6.98 |
% |
|
|
6.67 |
% |
|
|
6.77 |
% |
||
Tangible Common Equity to Tangible Assets (Non-GAAP) |
|
|
6.04 |
% |
|
|
6.06 |
% |
|
|
6.53 |
% |
|
|
6.63 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Tier 1 Capital Ratio |
|
|
13.47 |
% |
|
|
13.87 |
% |
|
|
12.06 |
% |
|
|
12.09 |
% |
||
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) |
|
|
11.46 |
% |
|
|
11.81 |
% |
|
|
11.89 |
% |
|
|
12.02 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Risk-Weighted Assets and regulatory capital ratios as of September 30, 2021 are preliminary. |
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|
|
|
|
|||||||||||
Consolidated Statements of Income |
|
|
Table 3 |
|
||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
September 30, |
|
||||||||
(dollars in thousands, except per share amounts) |
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|||||
Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and Fees on Loans and Leases |
|
$ |
100,570 |
|
|
$ |
100,894 |
|
|
$ |
103,189 |
|
|
$ |
300,763 |
|
|
$ |
319,027 |
|
Income on Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-Sale |
|
|
16,396 |
|
|
|
16,467 |
|
|
|
14,558 |
|
|
|
48,700 |
|
|
|
45,845 |
|
Held-to-Maturity |
|
|
16,754 |
|
|
|
13,576 |
|
|
|
15,967 |
|
|
|
43,630 |
|
|
|
51,942 |
|
Deposits |
|
|
2 |
|
|
|
- |
|
|
|
3 |
|
|
|
9 |
|
|
|
13 |
|
Funds Sold |
|
|
382 |
|
|
|
260 |
|
|
|
149 |
|
|
|
779 |
|
|
|
787 |
|
Other |
|
|
159 |
|
|
|
182 |
|
|
|
151 |
|
|
|
526 |
|
|
|
494 |
|
Total Interest Income |
|
|
134,263 |
|
|
|
131,379 |
|
|
|
134,017 |
|
|
|
394,407 |
|
|
|
418,108 |
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
3,837 |
|
|
|
4,152 |
|
|
|
5,891 |
|
|
|
12,318 |
|
|
|
28,105 |
|
Securities Sold Under Agreements to Repurchase |
|
|
3,423 |
|
|
|
3,470 |
|
|
|
3,622 |
|
|
|
10,426 |
|
|
|
11,667 |
|
Funds Purchased |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
90 |
|
Short-Term Borrowings |
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
62 |
|
Other Debt |
|
|
184 |
|
|
|
243 |
|
|
|
337 |
|
|
|
760 |
|
|
|
1,361 |
|
Total Interest Expense |
|
|
7,444 |
|
|
|
7,865 |
|
|
|
9,851 |
|
|
|
23,505 |
|
|
|
41,285 |
|
Net Interest Income |
|
|
126,819 |
|
|
|
123,514 |
|
|
|
124,166 |
|
|
|
370,902 |
|
|
|
376,823 |
|
Provision for Credit Losses |
|
|
(10,400 |
) |
|
|
(16,100 |
) |
|
|
28,600 |
|
|
|
(40,800 |
) |
|
|
102,600 |
|
Net Interest Income After Provision for Credit Losses |
|
|
137,219 |
|
|
|
139,614 |
|
|
|
95,566 |
|
|
|
411,702 |
|
|
|
274,223 |
|
Noninterest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and Asset Management |
|
|
11,415 |
|
|
|
11,682 |
|
|
|
10,752 |
|
|
|
34,375 |
|
|
|
32,217 |
|
Mortgage Banking |
|
|
3,136 |
|
|
|
3,058 |
|
|
|
4,047 |
|
|
|
12,056 |
|
|
|
11,020 |
|
Service Charges on Deposit Accounts |
|
|
6,510 |
|
|
|
6,065 |
|
|
|
6,027 |
|
|
|
18,703 |
|
|
|
18,575 |
|
Fees, Exchange, and Other Service Charges |
|
|
13,604 |
|
|
|
13,807 |
|
|
|
12,296 |
|
|
|
41,018 |
|
|
|
34,913 |
|
Investment Securities Gains (Losses), Net |
|
|
(1,259 |
) |
|
|
2,423 |
|
|
|
(1,121 |
) |
|
|
(39 |
) |
|
|
11,125 |
|
Annuity and Insurance |
|
|
735 |
|
|
|
911 |
|
|
|
881 |
|
|
|
2,348 |
|
|
|
2,692 |
|
Bank-Owned Life Insurance |
|
|
1,897 |
|
|
|
2,063 |
|
|
|
1,806 |
|
|
|
5,877 |
|
|
|
5,035 |
|
Other |
|
|
5,340 |
|
|
|
4,422 |
|
|
|
7,046 |
|
|
|
14,441 |
|
|
|
23,574 |
|
Total Noninterest Income |
|
|
41,378 |
|
|
|
44,431 |
|
|
|
41,734 |
|
|
|
128,779 |
|
|
|
139,151 |
|
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and Benefits |
|
|
56,447 |
|
|
|
56,161 |
|
|
|
51,951 |
|
|
|
168,859 |
|
|
|
157,129 |
|
Net Occupancy |
|
|
3,079 |
|
|
|
5,047 |
|
|
|
7,281 |
|
|
|
17,216 |
|
|
|
24,997 |
|
Net Equipment |
|
|
8,924 |
|
|
|
8,796 |
|
|
|
9,223 |
|
|
|
26,598 |
|
|
|
25,874 |
|
Data Processing |
|
|
4,722 |
|
|
|
4,557 |
|
|
|
4,691 |
|
|
|
15,601 |
|
|
|
13,895 |
|
Professional Fees |
|
|
2,948 |
|
|
|
3,114 |
|
|
|
2,743 |
|
|
|
9,468 |
|
|
|
9,012 |
|
FDIC Insurance |
|
|
1,594 |
|
|
|
1,669 |
|
|
|
1,282 |
|
|
|
4,917 |
|
|
|
4,296 |
|
Other |
|
|
18,805 |
|
|
|
17,183 |
|
|
|
12,778 |
|
|
|
49,252 |
|
|
|
39,950 |
|
Total Noninterest Expense |
|
|
96,519 |
|
|
|
96,527 |
|
|
|
89,949 |
|
|
|
291,911 |
|
|
|
275,153 |
|
Income Before Provision for Income Taxes |
|
|
82,078 |
|
|
|
87,518 |
|
|
|
47,351 |
|
|
|
248,570 |
|
|
|
138,221 |
|
Provision for Income Taxes |
|
|
20,025 |
|
|
|
19,985 |
|
|
|
9,511 |
|
|
|
59,035 |
|
|
|
26,731 |
|
Net Income |
|
$ |
62,053 |
|
|
$ |
67,533 |
|
|
$ |
37,840 |
|
|
$ |
189,535 |
|
|
$ |
111,490 |
|
Preferred Stock Dividends |
|
|
1,006 |
|
|
|
- |
|
|
|
- |
|
|
|
1,006 |
|
|
|
- |
|
Net Income Available to Common Shareholders |
|
$ |
61,047 |
|
|
$ |
67,533 |
|
|
$ |
37,840 |
|
|
$ |
188,529 |
|
|
$ |
111,490 |
|
Basic Earnings Per Common Share |
|
$ |
1.53 |
|
|
$ |
1.69 |
|
|
$ |
0.95 |
|
|
$ |
4.73 |
|
|
$ |
2.81 |
|
Diluted Earnings Per Common Share |
|
$ |
1.52 |
|
|
$ |
1.68 |
|
|
$ |
0.95 |
|
|
$ |
4.70 |
|
|
$ |
2.80 |
|
Dividends Declared Per Common Share |
|
$ |
0.70 |
|
|
$ |
0.67 |
|
|
$ |
0.67 |
|
|
$ |
2.04 |
|
|
$ |
2.01 |
|
Basic Weighted Average Common Shares |
|
|
39,881,437 |
|
|
|
39,902,583 |
|
|
|
39,745,120 |
|
|
|
39,870,450 |
|
|
|
39,710,252 |
|
Diluted Weighted Average Common Shares |
|
|
40,080,919 |
|
|
|
40,122,905 |
|
|
|
39,869,135 |
|
|
|
40,088,899 |
|
|
|
39,872,406 |
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|
|
|
|
|||||||||||
Consolidated Statements of Comprehensive Income |
|
|
Table 4 |
|
||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
September 30, |
|
||||||||
(dollars in thousands) |
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|||||
Net Income |
|
$ |
62,053 |
|
|
$ |
67,533 |
|
|
$ |
37,840 |
|
|
$ |
189,535 |
|
|
$ |
111,490 |
|
Other Comprehensive Income (Loss), Net of Tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Unrealized Gains (Losses) on Investment Securities |
|
|
(7,541 |
) |
|
|
(123 |
) |
|
|
(4,900 |
) |
|
|
(57,714 |
) |
|
|
44,389 |
|
Defined Benefit Plans |
|
|
441 |
|
|
|
442 |
|
|
|
374 |
|
|
|
1,324 |
|
|
|
1,122 |
|
Other Comprehensive Income (Loss) |
|
|
(7,100 |
) |
|
|
319 |
|
|
|
(4,526 |
) |
|
|
(56,390 |
) |
|
|
45,511 |
|
Comprehensive Income |
|
$ |
54,953 |
|
|
$ |
67,852 |
|
|
$ |
33,314 |
|
|
$ |
133,145 |
|
|
$ |
157,001 |
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|
|
|
|
|||||||
Consolidated Statements of Condition |
|
|
|
|
|
|
Table 5 |
|
||||||||
|
|
September 30, |
|
|
June 30, |
|
|
December 31, |
|
|
September 30, |
|
||||
(dollars in thousands) |
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Deposits in Other Banks |
|
$ |
2,188 |
|
|
$ |
2,584 |
|
|
$ |
1,646 |
|
|
$ |
4,233 |
|
Funds Sold |
|
|
422,063 |
|
|
|
909,730 |
|
|
|
333,022 |
|
|
|
736,524 |
|
Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-Sale |
|
|
4,353,520 |
|
|
|
4,522,941 |
|
|
|
3,791,689 |
|
|
|
3,190,313 |
|
Held-to-Maturity (Fair Value of $4,895,763; $3,965,117; $3,348,693; and $3,288,668) |
|
|
4,899,880 |
|
|
|
3,947,613 |
|
|
|
3,262,727 |
|
|
|
3,198,830 |
|
Loans Held for Sale |
|
|
21,965 |
|
|
|
47,490 |
|
|
|
82,565 |
|
|
|
- |
|
Loans and Leases |
|
|
12,072,750 |
|
|
|
12,041,378 |
|
|
|
11,940,020 |
|
|
|
11,793,608 |
|
Allowance for Credit Losses |
|
|
(167,920 |
) |
|
|
(180,385 |
) |
|
|
(216,252 |
) |
|
|
(203,496 |
) |
Net Loans and Leases |
|
|
11,904,830 |
|
|
|
11,860,993 |
|
|
|
11,723,768 |
|
|
|
11,590,112 |
|
Total Earning Assets |
|
|
21,604,446 |
|
|
|
21,291,351 |
|
|
|
19,195,417 |
|
|
|
18,720,012 |
|
Cash and Due from Banks |
|
|
231,711 |
|
|
|
269,153 |
|
|
|
279,420 |
|
|
|
260,167 |
|
Premises and Equipment, Net |
|
|
199,144 |
|
|
|
198,508 |
|
|
|
199,695 |
|
|
|
199,021 |
|
Operating Lease Right-of-Use Assets |
|
|
97,007 |
|
|
|
97,264 |
|
|
|
99,542 |
|
|
|
96,200 |
|
Accrued Interest Receivable |
|
|
46,751 |
|
|
|
47,046 |
|
|
|
49,303 |
|
|
|
57,370 |
|
Foreclosed Real Estate |
|
|
2,332 |
|
|
|
2,332 |
|
|
|
2,332 |
|
|
|
2,332 |
|
Mortgage Servicing Rights |
|
|
22,099 |
|
|
|
21,473 |
|
|
|
19,652 |
|
|
|
21,887 |
|
Goodwill |
|
|
31,517 |
|
|
|
31,517 |
|
|
|
31,517 |
|
|
|
31,517 |
|
Bank-Owned Life Insurance |
|
|
293,230 |
|
|
|
292,805 |
|
|
|
291,480 |
|
|
|
291,231 |
|
Other Assets |
|
|
437,146 |
|
|
|
420,734 |
|
|
|
435,293 |
|
|
|
429,752 |
|
Total Assets |
|
$ |
22,965,383 |
|
|
$ |
22,672,183 |
|
|
$ |
20,603,651 |
|
|
$ |
20,109,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing Demand |
|
$ |
7,111,693 |
|
|
$ |
6,570,232 |
|
|
$ |
5,749,612 |
|
|
$ |
5,428,567 |
|
Interest-Bearing Demand |
|
|
4,768,725 |
|
|
|
4,498,825 |
|
|
|
4,040,733 |
|
|
|
3,824,448 |
|
Savings |
|
|
7,540,345 |
|
|
|
7,704,575 |
|
|
|
6,759,213 |
|
|
|
6,763,891 |
|
Time |
|
|
1,072,915 |
|
|
|
1,396,077 |
|
|
|
1,662,063 |
|
|
|
1,721,977 |
|
Total Deposits |
|
|
20,493,678 |
|
|
|
20,169,709 |
|
|
|
18,211,621 |
|
|
|
17,738,883 |
|
Securities Sold Under Agreements to Repurchase |
|
|
450,490 |
|
|
|
550,490 |
|
|
|
600,590 |
|
|
|
602,106 |
|
Other Debt |
|
|
10,414 |
|
|
|
10,437 |
|
|
|
60,481 |
|
|
|
60,502 |
|
Operating Lease Liabilities |
|
|
104,452 |
|
|
|
105,380 |
|
|
|
107,412 |
|
|
|
103,869 |
|
Retirement Benefits Payable |
|
|
49,802 |
|
|
|
50,260 |
|
|
|
51,197 |
|
|
|
43,505 |
|
Accrued Interest Payable |
|
|
3,415 |
|
|
|
3,879 |
|
|
|
5,117 |
|
|
|
6,613 |
|
Taxes Payable and Deferred Taxes |
|
|
9,815 |
|
|
|
11,844 |
|
|
|
2,463 |
|
|
|
12,124 |
|
Other Liabilities |
|
|
246,208 |
|
|
|
186,653 |
|
|
|
190,263 |
|
|
|
180,148 |
|
Total Liabilities |
|
|
21,368,274 |
|
|
|
21,088,652 |
|
|
|
19,229,144 |
|
|
|
18,747,750 |
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock ($.01 par value; authorized 180,000 shares; |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
issued and outstanding: September 30, 2021 and June 30, 2021 - 180,000 shares) |
|
|
180,000 |
|
|
|
180,000 |
|
|
|
- |
|
|
|
- |
|
Common Stock ($.01 par value; authorized 500,000,000 shares; |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
issued / outstanding: September 30, 2021 - 58,559,089 / 40,305,801; |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2021 - 58,557,754 / 40,465,482; December 31, 2020 - 58,285,624 / 40,119,312; |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and September 30, 2020 - 58,248,690 / 40,060,675) |
|
|
580 |
|
|
|
580 |
|
|
|
580 |
|
|
|
580 |
|
Capital Surplus |
|
|
598,341 |
|
|
|
594,261 |
|
|
|
591,360 |
|
|
|
588,632 |
|
Accumulated Other Comprehensive Income (Loss) |
|
|
(48,568 |
) |
|
|
(41,468 |
) |
|
|
7,822 |
|
|
|
14,399 |
|
Retained Earnings |
|
|
1,916,861 |
|
|
|
1,884,431 |
|
|
|
1,811,979 |
|
|
|
1,797,763 |
|
Treasury Stock, at Cost (Shares: September 30, 2021 - 18,253,288; June 30, 2021 - 18,092,272; |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020 - 18,166,312; and September 30, 2020 - 18,188,015) |
|
|
(1,050,105 |
) |
|
|
(1,034,273 |
) |
|
|
(1,037,234 |
) |
|
|
(1,039,635 |
) |
Total Shareholders' Equity |
|
|
1,597,109 |
|
|
|
1,583,531 |
|
|
|
1,374,507 |
|
|
|
1,361,739 |
|
Total Liabilities and Shareholders' Equity |
|
$ |
22,965,383 |
|
|
$ |
22,672,183 |
|
|
$ |
20,603,651 |
|
|
$ |
20,109,489 |
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|
|
||||||||||||||||||||
Consolidated Statements of Shareholders' Equity |
|
|
|
|
Table 6 |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accum. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compre- |
|
|
|
|
|
|
|
|
|
|
|
|
Preferred |
|
|
|
|
Common |
|
|
|
|
|
|
|
hensive |
|
|
|
|
|
|
|
|
|
|
|||
|
Shares |
|
Preferred |
|
Shares |
|
Common |
|
Capital |
|
Income |
|
Retained |
|
Treasury |
|
|
|
|
||||||||
(dollars in thousands) |
Outstanding |
|
Stock |
|
Outstanding |
|
Stock |
|
Surplus |
|
(Loss) |
|
Earnings |
|
Stock |
|
Total |
|
|||||||||
Balance as of December 31, 2020 |
|
- |
|
$ |
- |
|
|
40,119,312 |
|
$ |
580 |
|
$ |
591,360 |
|
$ |
7,822 |
|
$ |
1,811,979 |
|
$ |
(1,037,234 |
) |
$ |
1,374,507 |
|
Net Income |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
189,535 |
|
|
- |
|
|
189,535 |
|
Other Comprehensive Loss |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(56,390 |
) |
|
- |
|
|
- |
|
|
(56,390 |
) |
Share-Based Compensation |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
9,658 |
|
|
- |
|
|
- |
|
|
- |
|
|
9,658 |
|
Preferred Stock Issued, Net |
|
180,000 |
|
|
180,000 |
|
|
- |
|
|
- |
|
|
(4,513 |
) |
|
- |
|
|
- |
|
|
- |
|
|
175,487 |
|
Common Stock Issued under Purchase |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and Equity Compensation Plans |
|
- |
|
|
- |
|
|
466,265 |
|
|
- |
|
|
1,836 |
|
|
- |
|
|
(1,218 |
) |
|
10,541 |
|
|
11,159 |
|
Common Stock Repurchased |
|
- |
|
|
- |
|
|
(279,776 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(23,412 |
) |
|
(23,412 |
) |
Cash Dividends Declared Common Stock ($2.04 per share) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(82,429 |
) |
|
- |
|
|
(82,429 |
) |
Cash Dividends Declared Preferred Stock |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(1,006 |
) |
|
- |
|
|
(1,006 |
) |
Balance as of September 30, 2021 |
|
180,000 |
|
$ |
180,000 |
|
|
40,305,801 |
|
$ |
580 |
|
$ |
598,341 |
|
$ |
(48,568 |
) |
$ |
1,916,861 |
|
$ |
(1,050,105 |
) |
$ |
1,597,109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2019 |
|
- |
|
$ |
- |
|
|
40,039,695 |
|
$ |
579 |
|
$ |
582,566 |
|
$ |
(31,112 |
) |
$ |
1,761,415 |
|
$ |
(1,026,616 |
) |
$ |
1,286,832 |
|
Net Income |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
111,490 |
|
|
- |
|
|
111,490 |
|
Other Comprehensive Income |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
45,511 |
|
|
- |
|
|
- |
|
|
45,511 |
|
Cumulative Change in Accounting Principle |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
3,632 |
|
|
- |
|
|
3,632 |
|
Share-Based Compensation |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
5,347 |
|
|
- |
|
|
- |
|
|
- |
|
|
5,347 |
|
Common Stock Issued under Purchase |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and Equity Compensation Plans |
|
- |
|
|
- |
|
|
222,682 |
|
|
1 |
|
|
719 |
|
|
- |
|
|
1,762 |
|
|
4,878 |
|
|
7,360 |
|
Common Stock Repurchased |
|
- |
|
|
- |
|
|
(201,702 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(17,897 |
) |
|
(17,897 |
) |
Cash Dividends Declared Common Stock ($2.01 per share) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(80,536 |
) |
|
- |
|
|
(80,536 |
) |
Balance as of September 30, 2020 |
|
- |
|
$ |
- |
|
|
40,060,675 |
|
$ |
580 |
|
$ |
588,632 |
|
$ |
14,399 |
|
$ |
1,797,763 |
|
$ |
(1,039,635 |
) |
$ |
1,361,739 |
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Average Balances and Interest Rates - Taxable-Equivalent Basis |
|
Table 7a |
||||||||||||||||||||||||||||
|
Three Months Ended |
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|||||||||||||||||||||
|
September 30, 2021 |
|
|
June 30, 2021 |
|
|
September 30, 2020 |
|
|
|||||||||||||||||||||
|
Average |
|
Income/ |
|
Yield/ |
|
|
Average |
|
Income/ |
|
Yield/ |
|
|
Average |
|
Income/ |
|
Yield/ |
|
|
|||||||||
(dollars in millions) |
Balance |
|
Expense |
|
Rate |
|
|
Balance |
|
Expense |
|
Rate |
|
|
Balance |
|
Expense |
|
Rate |
|
|
|||||||||
Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Deposits in Other Banks |
$ |
3.2 |
|
$ |
- |
|
|
0.23 |
|
% |
$ |
2.2 |
|
$ |
- |
|
|
0.04 |
|
% |
$ |
2.6 |
|
$ |
- |
|
|
0.45 |
|
% |
Funds Sold |
|
999.5 |
|
|
0.4 |
|
|
0.15 |
|
|
|
946.2 |
|
|
0.3 |
|
|
0.11 |
|
|
|
584.2 |
|
|
0.1 |
|
|
0.10 |
|
|
Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-Sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
4,454.9 |
|
|
16.3 |
|
|
1.46 |
|
|
|
4,290.8 |
|
|
16.3 |
|
|
1.53 |
|
|
|
2,918.6 |
|
|
14.3 |
|
|
1.96 |
|
|
Non-Taxable |
|
10.1 |
|
|
0.1 |
|
|
4.34 |
|
|
|
12.3 |
|
|
0.1 |
|
|
4.27 |
|
|
|
25.8 |
|
|
0.3 |
|
|
4.22 |
|
|
Held-to-Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
4,294.6 |
|
|
16.5 |
|
|
1.53 |
|
|
|
3,496.2 |
|
|
13.4 |
|
|
1.53 |
|
|
|
3,257.7 |
|
|
15.7 |
|
|
1.93 |
|
|
Non-Taxable |
|
64.8 |
|
|
0.4 |
|
|
2.37 |
|
|
|
41.5 |
|
|
0.3 |
|
|
2.53 |
|
|
|
54.1 |
|
|
0.4 |
|
|
2.66 |
|
|
Total Investment Securities |
|
8,824.4 |
|
|
33.3 |
|
|
1.51 |
|
|
|
7,840.8 |
|
|
30.1 |
|
|
1.54 |
|
|
|
6,256.2 |
|
|
30.7 |
|
|
1.96 |
|
|
Loans Held for Sale |
|
24.6 |
|
|
0.2 |
|
|
2.80 |
|
|
|
25.7 |
|
|
0.2 |
|
|
2.86 |
|
|
|
15.9 |
|
|
0.1 |
|
|
3.24 |
|
|
Loans and Leases 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial |
|
1,644.8 |
|
|
17.0 |
|
|
4.09 |
|
|
|
1,934.5 |
|
|
16.8 |
|
|
3.49 |
|
|
|
1,917.0 |
|
|
14.1 |
|
|
2.93 |
|
|
Commercial Mortgage |
|
2,952.7 |
|
|
21.9 |
|
|
2.94 |
|
|
|
2,883.5 |
|
|
21.3 |
|
|
2.96 |
|
|
|
2,722.3 |
|
|
21.7 |
|
|
3.18 |
|
|
Construction |
|
289.9 |
|
|
2.5 |
|
|
3.38 |
|
|
|
285.6 |
|
|
2.6 |
|
|
3.66 |
|
|
|
234.0 |
|
|
2.1 |
|
|
3.60 |
|
|
Commercial Lease Financing |
|
109.3 |
|
|
0.4 |
|
|
1.58 |
|
|
|
105.7 |
|
|
0.4 |
|
|
1.54 |
|
|
|
110.7 |
|
|
0.5 |
|
|
1.82 |
|
|
Residential Mortgage |
|
4,253.2 |
|
|
34.8 |
|
|
3.27 |
|
|
|
4,234.3 |
|
|
35.6 |
|
|
3.35 |
|
|
|
3,988.7 |
|
|
36.7 |
|
|
3.68 |
|
|
Home Equity |
|
1,621.4 |
|
|
12.2 |
|
|
2.97 |
|
|
|
1,573.4 |
|
|
12.1 |
|
|
3.09 |
|
|
|
1,625.2 |
|
|
14.1 |
|
|
3.45 |
|
|
Automobile |
|
718.7 |
|
|
6.2 |
|
|
3.41 |
|
|
|
710.4 |
|
|
6.1 |
|
|
3.45 |
|
|
|
708.3 |
|
|
6.4 |
|
|
3.59 |
|
|
Other 2 |
|
368.3 |
|
|
5.7 |
|
|
6.16 |
|
|
|
368.9 |
|
|
6.0 |
|
|
6.53 |
|
|
|
433.6 |
|
|
7.6 |
|
|
6.96 |
|
|
Total Loans and Leases |
|
11,958.3 |
|
|
100.7 |
|
|
3.35 |
|
|
|
12,096.3 |
|
|
100.9 |
|
|
3.34 |
|
|
|
11,739.8 |
|
|
103.2 |
|
|
3.50 |
|
|
Other |
|
31.5 |
|
|
0.2 |
|
|
2.02 |
|
|
|
32.3 |
|
|
0.2 |
|
|
2.26 |
|
|
|
33.3 |
|
|
0.2 |
|
|
1.81 |
|
|
Total Earning Assets 3 |
|
21,841.5 |
|
|
134.8 |
|
|
2.45 |
|
|
|
20,943.5 |
|
|
131.7 |
|
|
2.52 |
|
|
|
18,632.0 |
|
|
134.3 |
|
|
2.88 |
|
|
Cash and Due from Banks |
|
252.2 |
|
|
|
|
|
|
|
|
|
256.1 |
|
|
|
|
|
|
|
|
|
234.3 |
|
|
|
|
|
|
|
|
Other Assets |
|
899.3 |
|
|
|
|
|
|
|
|
|
874.0 |
|
|
|
|
|
|
|
|
|
874.8 |
|
|
|
|
|
|
|
|
Total Assets |
$ |
22,993.0 |
|
|
|
|
|
|
|
|
$ |
22,073.6 |
|
|
|
|
|
|
|
|
$ |
19,741.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
$ |
4,707.1 |
|
|
0.7 |
|
|
0.06 |
|
|
$ |
4,452.4 |
|
|
0.7 |
|
|
0.07 |
|
|
$ |
3,465.5 |
|
|
0.4 |
|
|
0.04 |
|
|
Savings |
|
7,687.0 |
|
|
1.8 |
|
|
0.09 |
|
|
|
7,533.0 |
|
|
1.8 |
|
|
0.09 |
|
|
|
6,886.0 |
|
|
1.7 |
|
|
0.10 |
|
|
Time |
|
1,267.0 |
|
|
1.4 |
|
|
0.44 |
|
|
|
1,418.4 |
|
|
1.7 |
|
|
0.47 |
|
|
|
1,568.3 |
|
|
3.8 |
|
|
0.97 |
|
|
Total Interest-Bearing Deposits |
|
13,661.1 |
|
|
3.9 |
|
|
0.11 |
|
|
|
13,403.8 |
|
|
4.2 |
|
|
0.12 |
|
|
|
11,919.8 |
|
|
5.9 |
|
|
0.20 |
|
|
Securities Sold Under Agreements to Repurchase |
|
547.8 |
|
|
3.4 |
|
|
2.45 |
|
|
|
570.3 |
|
|
3.5 |
|
|
2.41 |
|
|
|
602.9 |
|
|
3.6 |
|
|
2.35 |
|
|
Other Debt |
|
10.4 |
|
|
0.2 |
|
|
7.04 |
|
|
|
30.2 |
|
|
0.2 |
|
|
3.22 |
|
|
|
60.5 |
|
|
0.3 |
|
|
2.22 |
|
|
Total Interest-Bearing Liabilities |
|
14,219.3 |
|
|
7.5 |
|
|
0.21 |
|
|
|
14,004.3 |
|
|
7.9 |
|
|
0.22 |
|
|
|
12,583.2 |
|
|
9.8 |
|
|
0.31 |
|
|
Net Interest Income |
|
|
|
$ |
127.3 |
|
|
|
|
|
|
|
|
$ |
123.8 |
|
|
|
|
|
|
|
|
$ |
124.5 |
|
|
|
|
|
Interest Rate Spread |
|
|
|
|
|
|
|
2.24 |
|
% |
|
|
|
|
|
|
|
2.30 |
|
% |
|
|
|
|
|
|
|
2.57 |
|
% |
Net Interest Margin |
|
|
|
|
|
|
|
2.32 |
|
% |
|
|
|
|
|
|
|
2.37 |
|
% |
|
|
|
|
|
|
|
2.67 |
|
% |
Noninterest-Bearing Demand Deposits |
|
6,812.7 |
|
|
|
|
|
|
|
|
|
6,294.5 |
|
|
|
|
|
|
|
|
|
5,350.4 |
|
|
|
|
|
|
|
|
Other Liabilities |
|
362.9 |
|
|
|
|
|
|
|
|
|
361.9 |
|
|
|
|
|
|
|
|
|
439.7 |
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
1,598.1 |
|
|
|
|
|
|
|
|
|
1,412.9 |
|
|
|
|
|
|
|
|
|
1,367.8 |
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ |
22,993.0 |
|
|
|
|
|
|
|
|
$ |
22,073.6 |
|
|
|
|
|
|
|
|
$ |
19,741.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. |
||||||||||||||||||||||||||||||
2 Comprised of other consumer revolving credit, installment, and consumer lease financing. |
||||||||||||||||||||||||||||||
3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $315,000, $269,000, and $295,000 |
||||||||||||||||||||||||||||||
for the three months ended September 30, 2021, June 30, 2021, and September 30, 2020, respectively. |
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|
|
|
|
|
||||||||||
Average Balances and Interest Rates - Taxable-Equivalent Basis |
|
Table 7b |
||||||||||||||||||
|
Nine Months Ended |
|
|
Nine Months Ended |
|
|
||||||||||||||
|
September 30, 2021 |
|
|
September 30, 2020 |
|
|
||||||||||||||
|
Average |
|
Income/ |
|
Yield/ |
|
|
Average |
|
Income/ |
|
Yield/ |
|
|
||||||
(dollars in millions) |
Balance |
|
Expense |
|
Rate |
|
|
Balance |
|
Expense |
|
Rate |
|
|
||||||
Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Deposits in Other Banks |
$ |
2.9 |
|
$ |
- |
|
|
0.44 |
|
% |
$ |
2.2 |
|
$ |
- |
|
|
0.76 |
|
% |
Funds Sold |
|
833.7 |
|
|
0.8 |
|
|
0.12 |
|
|
|
428.3 |
|
|
0.8 |
|
|
0.24 |
|
|
Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-Sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
4,252.9 |
|
|
48.4 |
|
|
1.52 |
|
|
|
2,745.7 |
|
|
45.1 |
|
|
2.19 |
|
|
Non-Taxable |
|
11.5 |
|
|
0.4 |
|
|
4.29 |
|
|
|
30.1 |
|
|
1.0 |
|
|
4.37 |
|
|
Held-to-Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
3,728.9 |
|
|
42.9 |
|
|
1.53 |
|
|
|
3,084.4 |
|
|
51.0 |
|
|
2.21 |
|
|
Non-Taxable |
|
48.2 |
|
|
0.9 |
|
|
2.46 |
|
|
|
54.4 |
|
|
1.1 |
|
|
2.66 |
|
|
Total Investment Securities |
|
8,041.5 |
|
|
92.6 |
|
|
1.54 |
|
|
|
5,914.6 |
|
|
98.2 |
|
|
2.21 |
|
|
Loans Held for Sale |
|
25.5 |
|
|
0.5 |
|
|
2.81 |
|
|
|
20.8 |
|
|
0.5 |
|
|
3.35 |
|
|
Loans and Leases 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial |
|
1,826.9 |
|
|
48.1 |
|
|
3.52 |
|
|
|
1,763.9 |
|
|
45.2 |
|
|
3.43 |
|
|
Commercial Mortgage |
|
2,894.5 |
|
|
64.5 |
|
|
2.98 |
|
|
|
2,631.9 |
|
|
69.2 |
|
|
3.51 |
|
|
Construction |
|
280.0 |
|
|
7.3 |
|
|
3.51 |
|
|
|
234.3 |
|
|
7.1 |
|
|
4.04 |
|
|
Commercial Lease Financing |
|
107.1 |
|
|
1.2 |
|
|
1.52 |
|
|
|
111.0 |
|
|
1.6 |
|
|
1.88 |
|
|
Residential Mortgage |
|
4,211.8 |
|
|
106.2 |
|
|
3.36 |
|
|
|
3,941.3 |
|
|
109.5 |
|
|
3.70 |
|
|
Home Equity |
|
1,596.4 |
|
|
36.9 |
|
|
3.09 |
|
|
|
1,656.8 |
|
|
43.6 |
|
|
3.51 |
|
|
Automobile |
|
712.5 |
|
|
18.4 |
|
|
3.46 |
|
|
|
710.2 |
|
|
19.0 |
|
|
3.57 |
|
|
Other 2 |
|
373.2 |
|
|
18.1 |
|
|
6.48 |
|
|
|
460.8 |
|
|
23.9 |
|
|
6.93 |
|
|
Total Loans and Leases |
|
12,002.4 |
|
|
300.7 |
|
|
3.35 |
|
|
|
11,510.2 |
|
|
319.1 |
|
|
3.70 |
|
|
Other |
|
32.4 |
|
|
0.5 |
|
|
2.17 |
|
|
|
33.9 |
|
|
0.5 |
|
|
1.95 |
|
|
Total Earning Assets 3 |
|
20,938.4 |
|
|
395.1 |
|
|
2.52 |
|
|
|
17,910.0 |
|
|
419.1 |
|
|
3.12 |
|
|
Cash and Due from Banks |
|
259.6 |
|
|
|
|
|
|
|
|
|
271.7 |
|
|
|
|
|
|
|
|
Other Assets |
|
881.2 |
|
|
|
|
|
|
|
|
|
871.9 |
|
|
|
|
|
|
|
|
Total Assets |
$ |
22,079.2 |
|
|
|
|
|
|
|
|
$ |
19,053.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
$ |
4,450.6 |
|
|
2.0 |
|
|
0.06 |
|
|
$ |
3,268.1 |
|
|
1.9 |
|
|
0.08 |
|
|
Savings |
|
7,414.6 |
|
|
5.0 |
|
|
0.09 |
|
|
|
6,693.9 |
|
|
11.0 |
|
|
0.22 |
|
|
Time |
|
1,437.1 |
|
|
5.3 |
|
|
0.49 |
|
|
|
1,712.2 |
|
|
15.2 |
|
|
1.19 |
|
|
Total Interest-Bearing Deposits |
|
13,302.3 |
|
|
12.3 |
|
|
0.12 |
|
|
|
11,674.2 |
|
|
28.1 |
|
|
0.32 |
|
|
Short-Term Borrowings |
|
0.8 |
|
|
- |
|
|
0.09 |
|
|
|
38.3 |
|
|
0.2 |
|
|
0.52 |
|
|
Securities Sold Under Agreements to Repurchase |
|
572.7 |
|
|
10.4 |
|
|
2.40 |
|
|
|
603.4 |
|
|
11.6 |
|
|
2.54 |
|
|
Other Debt |
|
33.5 |
|
|
0.8 |
|
|
3.03 |
|
|
|
62.6 |
|
|
1.4 |
|
|
2.90 |
|
|
Total Interest-Bearing Liabilities |
|
13,909.3 |
|
|
23.5 |
|
|
0.22 |
|
|
|
12,378.5 |
|
|
41.3 |
|
|
0.44 |
|
|
Net Interest Income |
|
|
|
$ |
371.6 |
|
|
|
|
|
|
|
|
$ |
377.8 |
|
|
|
|
|
Interest Rate Spread |
|
|
|
|
|
|
|
2.30 |
|
% |
|
|
|
|
|
|
|
2.68 |
|
% |
Net Interest Margin |
|
|
|
|
|
|
|
2.37 |
|
% |
|
|
|
|
|
|
|
2.82 |
|
% |
Noninterest-Bearing Demand Deposits |
|
6,316.8 |
|
|
|
|
|
|
|
|
|
4,917.4 |
|
|
|
|
|
|
|
|
Other Liabilities |
|
389.5 |
|
|
|
|
|
|
|
|
|
413.3 |
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
1,463.6 |
|
|
|
|
|
|
|
|
|
1,344.4 |
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ |
22,079.2 |
|
|
|
|
|
|
|
|
$ |
19,053.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. |
||||||||||||||||||||
2 Comprised of other consumer revolving credit, installment, and consumer lease financing. |
||||||||||||||||||||
3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $836,000 and $1,010,000 |
||||||||||||||||||||
for the nine months ended September 30, 2021 and September 30, 2020, respectively. |
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|||||||
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis |
|
|
Table 8a |
|
||||||||
|
|
Three Months Ended September 30, 2021 |
|
|||||||||
|
|
Compared to June 30, 2021 |
|
|||||||||
(dollars in millions) |
|
Volume 1 |
|
|
Rate 1 |
|
|
Total |
|
|||
Change in Interest Income: |
|
|
|
|
|
|
|
|
|
|
|
|
Funds Sold |
|
$ |
- |
|
|
$ |
0.1 |
|
|
$ |
0.1 |
|
Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-Sale |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
0.6 |
|
|
|
(0.6 |
) |
|
|
- |
|
Held-to-Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
3.1 |
|
|
|
- |
|
|
|
3.1 |
|
Non-Taxable |
|
|
0.1 |
|
|
|
- |
|
|
|
0.1 |
|
Total Investment Securities |
|
|
3.8 |
|
|
|
(0.6 |
) |
|
|
3.2 |
|
Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial |
|
|
(4.0 |
) |
|
|
4.2 |
|
|
|
0.2 |
|
Commercial Mortgage |
|
|
0.7 |
|
|
|
(0.1 |
) |
|
|
0.6 |
|
Construction |
|
|
0.1 |
|
|
|
(0.2 |
) |
|
|
(0.1 |
) |
Commercial Lease Financing |
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
- |
|
Residential Mortgage |
|
|
0.2 |
|
|
|
(1.0 |
) |
|
|
(0.8 |
) |
Home Equity |
|
|
0.5 |
|
|
|
(0.4 |
) |
|
|
0.1 |
|
Automobile |
|
|
0.1 |
|
|
|
- |
|
|
|
0.1 |
|
Other 2 |
|
|
- |
|
|
|
(0.3 |
) |
|
|
(0.3 |
) |
Total Loans and Leases |
|
|
(2.3 |
) |
|
|
2.1 |
|
|
|
(0.2 |
) |
Total Change in Interest Income |
|
|
1.5 |
|
|
|
1.6 |
|
|
|
3.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Interest Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
- |
|
Time |
|
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(0.3 |
) |
Total Interest-Bearing Deposits |
|
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
(0.3 |
) |
Securities Sold Under Agreements to Repurchase |
|
|
(0.1 |
) |
|
|
- |
|
|
|
(0.1 |
) |
Other Debt |
|
|
(0.2 |
) |
|
|
0.2 |
|
|
|
- |
|
Total Change in Interest Expense |
|
|
(0.4 |
) |
|
|
- |
|
|
|
(0.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Net Interest Income |
|
$ |
1.9 |
|
|
$ |
1.6 |
|
|
$ |
3.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. |
|
|||||||||||
2 Comprised of other consumer revolving credit, installment, and consumer lease financing. |
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|||||||
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis |
|
|
Table 8b |
|
||||||||
|
|
Three Months Ended September 30, 2021 |
|
|||||||||
|
|
Compared to September 30, 2020 |
|
|||||||||
(dollars in millions) |
|
Volume 1 |
|
|
Rate 1 |
|
|
Total |
|
|||
Change in Interest Income: |
|
|
|
|
|
|
|
|
|
|
|
|
Funds Sold |
|
$ |
0.2 |
|
|
$ |
0.1 |
|
|
$ |
0.3 |
|
Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-Sale |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
6.3 |
|
|
|
(4.3 |
) |
|
|
2.0 |
|
Non-Taxable |
|
|
(0.2 |
) |
|
|
- |
|
|
|
(0.2 |
) |
Held-to-Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
4.4 |
|
|
|
(3.6 |
) |
|
|
0.8 |
|
Non-Taxable |
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
- |
|
Total Investment Securities |
|
|
10.6 |
|
|
|
(8.0 |
) |
|
|
2.6 |
|
Loans Held for Sale |
|
|
0.1 |
|
|
|
- |
|
|
|
0.1 |
|
Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial |
|
|
(2.1 |
) |
|
|
5.0 |
|
|
|
2.9 |
|
Commercial Mortgage |
|
|
1.8 |
|
|
|
(1.6 |
) |
|
|
0.2 |
|
Construction |
|
|
0.5 |
|
|
|
(0.1 |
) |
|
|
0.4 |
|
Commercial Lease Financing |
|
|
- |
|
|
|
(0.1 |
) |
|
|
(0.1 |
) |
Residential Mortgage |
|
|
2.3 |
|
|
|
(4.2 |
) |
|
|
(1.9 |
) |
Home Equity |
|
|
- |
|
|
|
(1.9 |
) |
|
|
(1.9 |
) |
Automobile |
|
|
0.1 |
|
|
|
(0.3 |
) |
|
|
(0.2 |
) |
Other 2 |
|
|
(1.1 |
) |
|
|
(0.8 |
) |
|
|
(1.9 |
) |
Total Loans and Leases |
|
|
1.5 |
|
|
|
(4.0 |
) |
|
|
(2.5 |
) |
Total Change in Interest Income |
|
|
12.4 |
|
|
|
(11.9 |
) |
|
|
0.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Interest Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
|
0.2 |
|
|
|
0.1 |
|
|
|
0.3 |
|
Savings |
|
|
0.2 |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
Time |
|
|
(0.6 |
) |
|
|
(1.8 |
) |
|
|
(2.4 |
) |
Total Interest-Bearing Deposits |
|
|
(0.2 |
) |
|
|
(1.8 |
) |
|
|
(2.0 |
) |
Securities Sold Under Agreements to Repurchase |
|
|
(0.3 |
) |
|
|
0.1 |
|
|
|
(0.2 |
) |
Other Debt |
|
|
(0.4 |
) |
|
|
0.3 |
|
|
|
(0.1 |
) |
Total Change in Interest Expense |
|
|
(0.9 |
) |
|
|
(1.4 |
) |
|
|
(2.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Net Interest Income |
|
$ |
13.3 |
|
|
$ |
(10.5 |
) |
|
$ |
2.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. |
|
|||||||||||
2 Comprised of other consumer revolving credit, installment, and consumer lease financing. |
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|||||||
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis |
|
|
Table 8c |
|
||||||||
|
|
Nine Months Ended September 30, 2021 |
|
|||||||||
|
|
Compared to September 30, 2020 |
|
|||||||||
(dollars in millions) |
|
Volume 1 |
|
|
Rate 1 |
|
|
Total |
|
|||
Change in Interest Income: |
|
|
|
|
|
|
|
|
|
|
|
|
Funds Sold |
|
$ |
0.5 |
|
|
$ |
(0.5 |
) |
|
$ |
- |
|
Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-Sale |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
19.9 |
|
|
|
(16.6 |
) |
|
|
3.3 |
|
Non-Taxable |
|
|
(0.6 |
) |
|
|
- |
|
|
|
(0.6 |
) |
Held-to-Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
9.4 |
|
|
|
(17.5 |
) |
|
|
(8.1 |
) |
Non-Taxable |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.2 |
) |
Total Investment Securities |
|
|
28.6 |
|
|
|
(34.2 |
) |
|
|
(5.6 |
) |
Loans Held for Sale |
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
- |
|
Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial |
|
|
6.4 |
|
|
|
(3.5 |
) |
|
|
2.9 |
|
Commercial Mortgage |
|
|
6.5 |
|
|
|
(11.2 |
) |
|
|
(4.7 |
) |
Construction |
|
|
1.2 |
|
|
|
(1.0 |
) |
|
|
0.2 |
|
Commercial Lease Financing |
|
|
(0.1 |
) |
|
|
(0.3 |
) |
|
|
(0.4 |
) |
Residential Mortgage |
|
|
7.2 |
|
|
|
(10.5 |
) |
|
|
(3.3 |
) |
Home Equity |
|
|
(1.5 |
) |
|
|
(5.2 |
) |
|
|
(6.7 |
) |
Automobile |
|
|
- |
|
|
|
(0.6 |
) |
|
|
(0.6 |
) |
Other 2 |
|
|
(4.3 |
) |
|
|
(1.5 |
) |
|
|
(5.8 |
) |
Total Loans and Leases |
|
|
15.4 |
|
|
|
(33.8 |
) |
|
|
(18.4 |
) |
Total Change in Interest Income |
|
|
44.6 |
|
|
|
(68.6 |
) |
|
|
(24.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Interest Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
|
0.6 |
|
|
|
(0.5 |
) |
|
|
0.1 |
|
Savings |
|
|
1.1 |
|
|
|
(7.1 |
) |
|
|
(6.0 |
) |
Time |
|
|
(2.1 |
) |
|
|
(7.8 |
) |
|
|
(9.9 |
) |
Total Interest-Bearing Deposits |
|
|
(0.4 |
) |
|
|
(15.4 |
) |
|
|
(15.8 |
) |
Short Term Borrowings |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.2 |
) |
Securities Sold Under Agreements to Repurchase |
|
|
(0.6 |
) |
|
|
(0.6 |
) |
|
|
(1.2 |
) |
Other Debt |
|
|
(0.7 |
) |
|
|
0.1 |
|
|
|
(0.6 |
) |
Total Change in Interest Expense |
|
|
(1.8 |
) |
|
|
(16.0 |
) |
|
|
(17.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Net Interest Income |
|
$ |
46.4 |
|
|
$ |
(52.6 |
) |
|
$ |
(6.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. |
|
|||||||||||
2 Comprised of other consumer revolving credit, installment, and consumer lease financing. |
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|
|
|
|
|||||||||||
Salaries and Benefits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 9 |
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
September 30, |
|
||||||||
(dollars in thousands) |
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|||||
Salaries |
|
$ |
34,676 |
|
|
$ |
33,413 |
|
|
$ |
34,046 |
|
|
$ |
99,658 |
|
|
$ |
100,271 |
|
Incentive Compensation |
|
|
4,677 |
|
|
|
5,172 |
|
|
|
2,683 |
|
|
|
15,763 |
|
|
|
6,069 |
|
Share-Based Compensation |
|
|
3,335 |
|
|
|
3,174 |
|
|
|
1,442 |
|
|
|
9,093 |
|
|
|
4,754 |
|
Commission Expense |
|
|
1,772 |
|
|
|
2,599 |
|
|
|
1,800 |
|
|
|
6,807 |
|
|
|
4,821 |
|
Retirement and Other Benefits |
|
|
4,746 |
|
|
|
5,289 |
|
|
|
4,164 |
|
|
|
15,552 |
|
|
|
13,316 |
|
Payroll Taxes |
|
|
2,825 |
|
|
|
3,026 |
|
|
|
2,624 |
|
|
|
9,819 |
|
|
|
9,949 |
|
Medical, Dental, and Life Insurance |
|
|
3,222 |
|
|
|
3,204 |
|
|
|
3,422 |
|
|
|
8,850 |
|
|
|
11,394 |
|
Separation Expense |
|
|
1,194 |
|
|
|
284 |
|
|
|
1,770 |
|
|
|
3,317 |
|
|
|
6,555 |
|
Total Salaries and Benefits |
|
$ |
56,447 |
|
|
$ |
56,161 |
|
|
$ |
51,951 |
|
|
$ |
168,859 |
|
|
$ |
157,129 |
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|
|
|
|
|||||||||||
Loan and Lease Portfolio Balances |
|
|
|
|
|
|
Table 10 |
|
||||||||||||
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|||||
(dollars in thousands) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|||||
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial |
|
$ |
1,325,446 |
|
|
$ |
1,257,305 |
|
|
$ |
1,288,496 |
|
|
$ |
1,357,610 |
|
|
$ |
1,376,843 |
|
PPP 1 |
|
|
268,480 |
|
|
|
513,513 |
|
|
|
725,485 |
|
|
|
517,683 |
|
|
|
531,639 |
|
Commercial Mortgage |
|
|
2,994,520 |
|
|
|
2,944,435 |
|
|
|
2,859,246 |
|
|
|
2,854,829 |
|
|
|
2,745,611 |
|
Construction |
|
|
296,052 |
|
|
|
277,393 |
|
|
|
281,164 |
|
|
|
259,798 |
|
|
|
250,943 |
|
Lease Financing |
|
|
107,526 |
|
|
|
110,500 |
|
|
|
104,980 |
|
|
|
110,766 |
|
|
|
111,831 |
|
Total Commercial |
|
|
4,992,024 |
|
|
|
5,103,146 |
|
|
|
5,259,371 |
|
|
|
5,100,686 |
|
|
|
5,016,867 |
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Mortgage |
|
|
4,272,540 |
|
|
|
4,264,180 |
|
|
|
4,216,976 |
|
|
|
4,130,513 |
|
|
|
4,044,228 |
|
Home Equity |
|
|
1,680,229 |
|
|
|
1,594,781 |
|
|
|
1,577,500 |
|
|
|
1,604,538 |
|
|
|
1,605,486 |
|
Automobile |
|
|
727,234 |
|
|
|
714,729 |
|
|
|
710,407 |
|
|
|
708,800 |
|
|
|
709,937 |
|
Other 2 |
|
|
400,723 |
|
|
|
364,542 |
|
|
|
376,449 |
|
|
|
395,483 |
|
|
|
417,090 |
|
Total Consumer |
|
|
7,080,726 |
|
|
|
6,938,232 |
|
|
|
6,881,332 |
|
|
|
6,839,334 |
|
|
|
6,776,741 |
|
Total Loans and Leases |
|
$ |
12,072,750 |
|
|
$ |
12,041,378 |
|
|
$ |
12,140,703 |
|
|
$ |
11,940,020 |
|
|
$ |
11,793,608 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|||||
(dollars in thousands) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|||||
Consumer |
|
$ |
10,150,199 |
|
|
$ |
9,848,285 |
|
|
$ |
9,746,713 |
|
|
$ |
9,347,725 |
|
|
$ |
8,903,808 |
|
Commercial |
|
|
8,767,733 |
|
|
|
8,675,909 |
|
|
|
8,241,102 |
|
|
|
7,302,832 |
|
|
|
7,159,531 |
|
Public and Other |
|
|
1,575,746 |
|
|
|
1,645,515 |
|
|
|
1,568,836 |
|
|
|
1,561,064 |
|
|
|
1,675,544 |
|
Total Deposits |
|
$ |
20,493,678 |
|
|
$ |
20,169,709 |
|
|
$ |
19,556,651 |
|
|
$ |
18,211,621 |
|
|
$ |
17,738,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 The PPP amounts presented, which are reported net of deferred costs and fees, were previously included as a component of the Commercial and Industrial loan class. |
|
|||||||||||||||||||
2 Comprised of other revolving credit, installment, and lease financing. |
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|||||||||||||||
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More |
|
|
Table 11 |
|
||||||||||||||||
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|||||
(dollars in thousands) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|||||
Non-Performing Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Accrual Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial |
|
$ |
209 |
|
|
$ |
258 |
|
|
$ |
293 |
|
|
$ |
441 |
|
|
$ |
475 |
|
Commercial Mortgage |
|
|
8,309 |
|
|
|
8,413 |
|
|
|
8,503 |
|
|
|
8,527 |
|
|
|
8,615 |
|
Total Commercial |
|
|
8,518 |
|
|
|
8,671 |
|
|
|
8,796 |
|
|
|
8,968 |
|
|
|
9,090 |
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Mortgage |
|
|
4,348 |
|
|
|
2,437 |
|
|
|
1,804 |
|
|
|
3,223 |
|
|
|
3,543 |
|
Home Equity |
|
|
5,422 |
|
|
|
5,534 |
|
|
|
4,951 |
|
|
|
3,958 |
|
|
|
3,661 |
|
Total Consumer |
|
|
9,770 |
|
|
|
7,971 |
|
|
|
6,755 |
|
|
|
7,181 |
|
|
|
7,204 |
|
Total Non-Accrual Loans and Leases |
|
|
18,288 |
|
|
|
16,642 |
|
|
|
15,551 |
|
|
|
16,149 |
|
|
|
16,294 |
|
Foreclosed Real Estate |
|
|
2,332 |
|
|
|
2,332 |
|
|
|
2,332 |
|
|
|
2,332 |
|
|
|
2,332 |
|
Total Non-Performing Assets |
|
$ |
20,620 |
|
|
$ |
18,974 |
|
|
$ |
17,883 |
|
|
$ |
18,481 |
|
|
$ |
18,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing Loans and Leases Past Due 90 Days or More |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
9 |
|
|
$ |
- |
|
|
$ |
- |
|
Total Consumer |
|
|
- |
|
|
|
- |
|
|
|
9 |
|
|
|
- |
|
|
|
- |
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Mortgage |
|
$ |
4,776 |
|
|
$ |
4,069 |
|
|
$ |
4,069 |
|
|
$ |
5,274 |
|
|
$ |
6,607 |
|
Home Equity |
|
|
2,946 |
|
|
|
4,498 |
|
|
|
4,906 |
|
|
|
3,187 |
|
|
|
2,571 |
|
Automobile |
|
|
395 |
|
|
|
277 |
|
|
|
604 |
|
|
|
925 |
|
|
|
156 |
|
Other 1 |
|
|
593 |
|
|
|
434 |
|
|
|
828 |
|
|
|
1,160 |
|
|
|
258 |
|
Total Consumer |
|
|
8,710 |
|
|
|
9,278 |
|
|
|
10,407 |
|
|
|
10,546 |
|
|
|
9,592 |
|
Total Accruing Loans and Leases Past Due 90 Days or More |
|
$ |
8,710 |
|
|
$ |
9,278 |
|
|
$ |
10,416 |
|
|
$ |
10,546 |
|
|
$ |
9,592 |
|
Restructured Loans on Accrual Status |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and Not Past Due 90 Days or More |
|
$ |
62,787 |
|
|
$ |
74,926 |
|
|
$ |
74,216 |
|
|
$ |
68,065 |
|
|
$ |
58,650 |
|
Total Loans and Leases |
|
$ |
12,072,750 |
|
|
$ |
12,041,378 |
|
|
$ |
12,140,703 |
|
|
$ |
11,940,020 |
|
|
$ |
11,793,608 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases |
|
|
0.15 |
% |
|
|
0.14 |
% |
|
|
0.13 |
% |
|
|
0.14 |
% |
|
|
0.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of Non-Performing Assets to Total Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and Foreclosed Real Estate |
|
|
0.17 |
% |
|
|
0.16 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
0.16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of Commercial Non-Performing Assets to Total Commercial Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and Leases and Commercial Foreclosed Real Estate |
|
|
0.17 |
% |
|
|
0.17 |
% |
|
|
0.17 |
% |
|
|
0.18 |
% |
|
|
0.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of Consumer Non-Performing Assets to Total Consumer Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and Leases and Consumer Foreclosed Real Estate |
|
|
0.17 |
% |
|
|
0.15 |
% |
|
|
0.13 |
% |
|
|
0.14 |
% |
|
|
0.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of Non-Performing Assets and Accruing Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past Due 90 Days or More to Total Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and Foreclosed Real Estate |
|
|
0.24 |
% |
|
|
0.23 |
% |
|
|
0.23 |
% |
|
|
0.24 |
% |
|
|
0.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter to Quarter Changes in Non-Performing Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at Beginning of Quarter |
|
$ |
18,974 |
|
|
$ |
17,883 |
|
|
$ |
18,481 |
|
|
$ |
18,626 |
|
|
$ |
22,701 |
|
Additions |
|
|
3,171 |
|
|
|
2,229 |
|
|
|
2,992 |
|
|
|
434 |
|
|
|
938 |
|
Reductions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments |
|
|
(889 |
) |
|
|
(722 |
) |
|
|
(2,481 |
) |
|
|
(490 |
) |
|
|
(3,729 |
) |
Return to Accrual Status |
|
|
(606 |
) |
|
|
(416 |
) |
|
|
(1,014 |
) |
|
|
- |
|
|
|
(1,035 |
) |
Sales of Foreclosed Real Estate |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(175 |
) |
Charge-offs/Write-downs |
|
|
(30 |
) |
|
|
- |
|
|
|
(95 |
) |
|
|
(89 |
) |
|
|
(74 |
) |
Total Reductions |
|
|
(1,525 |
) |
|
|
(1,138 |
) |
|
|
(3,590 |
) |
|
|
(579 |
) |
|
|
(5,013 |
) |
Balance at End of Quarter |
|
$ |
20,620 |
|
|
$ |
18,974 |
|
|
$ |
17,883 |
|
|
$ |
18,481 |
|
|
$ |
18,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Comprised of other revolving credit, installment, and lease financing. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|
|
|
|
|||||||||||
Reserve for Credit Losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 12 |
|
||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
September 30, |
|
||||||||
(dollars in thousands) |
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|||||
Balance at Beginning of Period |
|
$ |
186,371 |
|
|
$ |
203,779 |
|
|
|
175,958 |
|
|
$ |
221,303 |
|
|
|
116,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CECL Adoption (Day 1) Impact |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(5,072 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and Leases Charged-Off |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial |
|
|
(196 |
) |
|
|
(456 |
) |
|
|
(171 |
) |
|
|
(900 |
) |
|
|
(1,520 |
) |
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Mortgage |
|
|
(197 |
) |
|
|
(115 |
) |
|
|
- |
|
|
|
(316 |
) |
|
|
(84 |
) |
Home Equity |
|
|
(289 |
) |
|
|
(107 |
) |
|
|
(43 |
) |
|
|
(412 |
) |
|
|
(316 |
) |
Automobile |
|
|
(576 |
) |
|
|
(1,209 |
) |
|
|
(489 |
) |
|
|
(3,894 |
) |
|
|
(6,103 |
) |
Other 1 |
|
|
(2,187 |
) |
|
|
(2,422 |
) |
|
|
(1,644 |
) |
|
|
(8,523 |
) |
|
|
(9,784 |
) |
Total Loans and Leases Charged-Off |
|
|
(3,445 |
) |
|
|
(4,309 |
) |
|
|
(2,347 |
) |
|
|
(14,045 |
) |
|
|
(17,807 |
) |
Recoveries on Loans and Leases Previously Charged-Off |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial |
|
|
118 |
|
|
|
144 |
|
|
|
231 |
|
|
|
374 |
|
|
|
2,044 |
|
Commercial Mortgage |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
40 |
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Mortgage |
|
|
173 |
|
|
|
481 |
|
|
|
414 |
|
|
|
1,609 |
|
|
|
795 |
|
Home Equity |
|
|
216 |
|
|
|
527 |
|
|
|
727 |
|
|
|
1,276 |
|
|
|
2,024 |
|
Automobile |
|
|
943 |
|
|
|
1,172 |
|
|
|
1,313 |
|
|
|
3,034 |
|
|
|
2,865 |
|
Other 1 |
|
|
802 |
|
|
|
801 |
|
|
|
1,119 |
|
|
|
2,459 |
|
|
|
2,645 |
|
Total Recoveries on Loans and Leases Previously Charged-Off |
|
|
2,252 |
|
|
|
3,125 |
|
|
|
3,804 |
|
|
|
8,752 |
|
|
|
10,413 |
|
Net Recovered (Charged-Off) - Loans and Leases |
|
|
(1,193 |
) |
|
|
(1,184 |
) |
|
|
1,457 |
|
|
|
(5,293 |
) |
|
|
(7,394 |
) |
Net Charged-Off - Accrued Interest Receivable |
|
|
(70 |
) |
|
|
(124 |
) |
|
|
- |
|
|
|
(502 |
) |
|
|
|
|
Provision for Credit Losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and Leases |
|
|
(11,272 |
) |
|
|
(16,774 |
) |
|
|
28,600 |
|
|
|
(43,039 |
) |
|
|
102,600 |
|
Accrued Interest Receivable |
|
|
(703 |
) |
|
|
(828 |
) |
|
|
- |
|
|
|
(1,531 |
) |
|
|
- |
|
Unfunded Commitments |
|
|
1,575 |
|
|
|
1,502 |
|
|
|
(202 |
) |
|
|
3,770 |
|
|
|
(1,170 |
) |
Balance at End of Period 2 |
|
$ |
174,708 |
|
|
$ |
186,371 |
|
|
$ |
205,813 |
|
|
$ |
174,708 |
|
|
$ |
205,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses - Loans and Leases |
|
$ |
167,920 |
|
|
|
180,385 |
|
|
|
203,496 |
|
|
$ |
167,920 |
|
|
|
203,496 |
|
Allowance for Credit Losses - Accrued Interest Receivable |
|
|
667 |
|
|
|
1,440 |
|
|
|
- |
|
|
|
667 |
|
|
|
- |
|
Reserve for Unfunded Commitments |
|
|
6,121 |
|
|
|
4,546 |
|
|
|
2,317 |
|
|
|
6,121 |
|
|
|
2,317 |
|
Total Reserve for Credit Losses |
|
$ |
174,708 |
|
|
$ |
186,371 |
|
|
$ |
205,813 |
|
|
$ |
174,708 |
|
|
$ |
205,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Loans and Leases Outstanding |
|
$ |
11,958,321 |
|
|
$ |
12,096,308 |
|
|
$ |
11,739,785 |
|
|
$ |
12,002,426 |
|
|
$ |
11,510,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of Net Loans and Leases Charged-Off (Recovered) to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Loans and Leases Outstanding (annualized) |
|
|
0.04 |
% |
|
|
0.04 |
% |
|
|
-0.05 |
% |
|
|
0.06 |
% |
|
|
0.09 |
% |
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 3 |
|
|
1.39 |
% |
|
|
1.50 |
% |
|
|
1.73 |
% |
|
|
1.39 |
% |
|
|
1.73 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Comprised of other revolving credit, installment, and lease financing. |
|
|||||||||||||||||||
2 Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition. |
|
|||||||||||||||||||
3 The numerator comprises the Allowance for Credit Losses - Loans and Leases. |
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|
|
|
|
|||||||
Business Segments Selected Financial Information |
|
|
|
|
|
|
Table 13a |
|
||||||||
|
|
Consumer |
|
|
Commercial |
|
|
Treasury |
|
|
Consolidated |
|
||||
(dollars in thousands) |
|
Banking |
|
|
Banking |
|
|
and Other |
|
|
Total |
|
||||
Three Months Ended September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
|
$ |
72,062 |
|
|
$ |
50,088 |
|
|
$ |
4,669 |
|
|
$ |
126,819 |
|
Provision for Credit Losses |
|
|
1,235 |
|
|
|
(42 |
) |
|
|
(11,593 |
) |
|
|
(10,400 |
) |
Net Interest Income After Provision for Credit Losses |
|
|
70,827 |
|
|
|
50,130 |
|
|
|
16,262 |
|
|
|
137,219 |
|
Noninterest Income |
|
|
32,046 |
|
|
|
7,906 |
|
|
|
1,426 |
|
|
|
41,378 |
|
Noninterest Expense |
|
|
(71,377 |
) |
|
|
(15,924 |
) |
|
|
(9,218 |
) |
|
|
(96,519 |
) |
Income Before Income Taxes |
|
|
31,496 |
|
|
|
42,112 |
|
|
|
8,470 |
|
|
|
82,078 |
|
Provision for Income Taxes |
|
|
(8,001 |
) |
|
|
(10,373 |
) |
|
|
(1,651 |
) |
|
|
(20,025 |
) |
Net Income |
|
$ |
23,495 |
|
|
$ |
31,739 |
|
|
$ |
6,819 |
|
|
$ |
62,053 |
|
Total Assets as of September 30, 2021 |
|
$ |
7,530,513 |
|
|
$ |
5,087,831 |
|
|
$ |
10,347,039 |
|
|
$ |
22,965,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
|
$ |
73,868 |
|
|
$ |
47,797 |
|
|
$ |
2,501 |
|
|
$ |
124,166 |
|
Provision for Credit Losses |
|
|
(1,372 |
) |
|
|
(85 |
) |
|
|
30,057 |
|
|
|
28,600 |
|
Net Interest Income (Loss) After Provision for Credit Losses |
|
|
75,240 |
|
|
|
47,882 |
|
|
|
(27,556 |
) |
|
|
95,566 |
|
Noninterest Income |
|
|
31,776 |
|
|
|
7,672 |
|
|
|
2,286 |
|
|
|
41,734 |
|
Noninterest Expense |
|
|
(69,408 |
) |
|
|
(15,430 |
) |
|
|
(5,111 |
) |
|
|
(89,949 |
) |
Income (Loss) Before Income Taxes |
|
|
37,608 |
|
|
|
40,124 |
|
|
|
(30,381 |
) |
|
|
47,351 |
|
Provision for Income Taxes |
|
|
(9,627 |
) |
|
|
(9,784 |
) |
|
|
9,900 |
|
|
|
(9,511 |
) |
Net Income (Loss) |
|
$ |
27,981 |
|
|
$ |
30,340 |
|
|
$ |
(20,481 |
) |
|
$ |
37,840 |
|
Total Assets as of September 30, 2020 |
|
$ |
7,383,822 |
|
|
$ |
5,027,836 |
|
|
$ |
7,697,831 |
|
|
$ |
20,109,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|
|
|
|
|||||||
Business Segments Selected Financial Information |
|
|
|
|
|
|
Table 13b |
|
||||||||
|
|
Consumer |
|
|
Commercial |
|
|
Treasury |
|
|
Consolidated |
|
||||
(dollars in thousands) |
|
Banking |
|
|
Banking |
|
|
and Other |
|
|
Total |
|
||||
Nine Months Ended September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
|
$ |
212,991 |
|
|
$ |
146,269 |
|
|
$ |
11,642 |
|
|
$ |
370,902 |
|
Provision for Credit Losses |
|
|
5,088 |
|
|
|
205 |
|
|
|
(46,093 |
) |
|
|
(40,800 |
) |
Net Interest Income After Provision for Credit Losses |
|
|
207,903 |
|
|
|
146,064 |
|
|
|
57,735 |
|
|
|
411,702 |
|
Noninterest Income |
|
|
98,344 |
|
|
|
22,339 |
|
|
|
8,096 |
|
|
|
128,779 |
|
Noninterest Expense |
|
|
(222,426 |
) |
|
|
(47,343 |
) |
|
|
(22,142 |
) |
|
|
(291,911 |
) |
Income Before Income Taxes |
|
|
83,821 |
|
|
|
121,060 |
|
|
|
43,689 |
|
|
|
248,570 |
|
Provision for Income Taxes |
|
|
(20,840 |
) |
|
|
(29,634 |
) |
|
|
(8,561 |
) |
|
|
(59,035 |
) |
Net Income |
|
$ |
62,981 |
|
|
$ |
91,426 |
|
|
$ |
35,128 |
|
|
$ |
189,535 |
|
Total Assets as of September 30, 2021 |
|
$ |
7,530,513 |
|
|
$ |
5,087,831 |
|
|
$ |
10,347,039 |
|
|
$ |
22,965,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
|
$ |
221,003 |
|
|
$ |
144,253 |
|
|
$ |
11,567 |
|
|
$ |
376,823 |
|
Provision for Credit Losses |
|
|
8,215 |
|
|
|
(819 |
) |
|
|
95,204 |
|
|
|
102,600 |
|
Net Interest Income (Loss) After Provision for Credit Losses |
|
|
212,788 |
|
|
|
145,072 |
|
|
|
(83,637 |
) |
|
|
274,223 |
|
Noninterest Income |
|
|
93,309 |
|
|
|
26,483 |
|
|
|
19,359 |
|
|
|
139,151 |
|
Noninterest Expense |
|
|
(210,744 |
) |
|
|
(47,552 |
) |
|
|
(16,857 |
) |
|
|
(275,153 |
) |
Income (Loss) Before Income Taxes |
|
|
95,353 |
|
|
|
124,003 |
|
|
|
(81,135 |
) |
|
|
138,221 |
|
Provision for Income Taxes |
|
|
(24,235 |
) |
|
|
(30,278 |
) |
|
|
27,782 |
|
|
|
(26,731 |
) |
Net Income (Loss) |
|
$ |
71,118 |
|
|
$ |
93,725 |
|
|
$ |
(53,353 |
) |
|
$ |
111,490 |
|
Total Assets as of September 30, 2020 |
|
$ |
7,383,822 |
|
|
$ |
5,027,836 |
|
|
$ |
7,697,831 |
|
|
$ |
20,109,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|
|||||||||||||||
Selected Quarterly Financial Data |
|
|
Table 14 |
||||||||||||||||||
|
|
Three Months Ended |
|
|
|||||||||||||||||
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
|||||
(dollars in thousands, except per share amounts) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
|||||
Quarterly Operating Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and Fees on Loans and Leases |
|
$ |
100,570 |
|
|
$ |
100,894 |
|
|
$ |
99,299 |
|
|
$ |
98,471 |
|
|
$ |
103,189 |
|
|
Income on Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-Sale |
|
|
16,396 |
|
|
|
16,467 |
|
|
|
15,837 |
|
|
|
15,449 |
|
|
|
14,558 |
|
|
Held-to-Maturity |
|
|
16,754 |
|
|
|
13,576 |
|
|
|
13,300 |
|
|
|
14,113 |
|
|
|
15,967 |
|
|
Deposits |
|
|
2 |
|
|
|
- |
|
|
|
7 |
|
|
|
1 |
|
|
|
3 |
|
|
Funds Sold |
|
|
382 |
|
|
|
260 |
|
|
|
137 |
|
|
|
115 |
|
|
|
149 |
|
|
Other |
|
|
159 |
|
|
|
182 |
|
|
|
185 |
|
|
|
167 |
|
|
|
151 |
|
|
Total Interest Income |
|
|
134,263 |
|
|
|
131,379 |
|
|
|
128,765 |
|
|
|
128,316 |
|
|
|
134,017 |
|
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
3,837 |
|
|
|
4,152 |
|
|
|
4,329 |
|
|
|
4,861 |
|
|
|
5,891 |
|
|
Securities Sold Under Agreements to Repurchase |
|
|
3,423 |
|
|
|
3,470 |
|
|
|
3,533 |
|
|
|
3,614 |
|
|
|
3,622 |
|
|
Funds Purchased |
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
5 |
|
|
|
- |
|
|
Short-Term Borrowings |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
Other Debt |
|
|
184 |
|
|
|
243 |
|
|
|
333 |
|
|
|
337 |
|
|
|
337 |
|
|
Total Interest Expense |
|
|
7,444 |
|
|
|
7,865 |
|
|
|
8,196 |
|
|
|
8,817 |
|
|
|
9,851 |
|
|
Net Interest Income |
|
|
126,819 |
|
|
|
123,514 |
|
|
|
120,569 |
|
|
|
119,499 |
|
|
|
124,166 |
|
|
Provision for Credit Losses |
|
|
(10,400 |
) |
|
|
(16,100 |
) |
|
|
(14,300 |
) |
|
|
15,200 |
|
|
|
28,600 |
|
|
Net Interest Income After Provision for Credit Losses |
|
|
137,219 |
|
|
|
139,614 |
|
|
|
134,869 |
|
|
|
104,299 |
|
|
|
95,566 |
|
|
Noninterest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and Asset Management |
|
|
11,415 |
|
|
|
11,682 |
|
|
|
11,278 |
|
|
|
11,239 |
|
|
|
10,752 |
|
|
Mortgage Banking |
|
|
3,136 |
|
|
|
3,058 |
|
|
|
5,862 |
|
|
|
6,851 |
|
|
|
4,047 |
|
|
Service Charges on Deposit Accounts |
|
|
6,510 |
|
|
|
6,065 |
|
|
|
6,128 |
|
|
|
6,335 |
|
|
|
6,027 |
|
|
Fees, Exchange, and Other Service Charges |
|
|
13,604 |
|
|
|
13,807 |
|
|
|
13,607 |
|
|
|
12,143 |
|
|
|
12,296 |
|
|
Investment Securities Gains (Losses), Net |
|
|
(1,259 |
) |
|
|
2,423 |
|
|
|
(1,203 |
) |
|
|
(1,193 |
) |
|
|
(1,121 |
) |
|
Annuity and Insurance |
|
|
735 |
|
|
|
911 |
|
|
|
702 |
|
|
|
670 |
|
|
|
881 |
|
|
Bank-Owned Life Insurance |
|
|
1,897 |
|
|
|
2,063 |
|
|
|
1,917 |
|
|
|
2,353 |
|
|
|
1,806 |
|
|
Other |
|
|
5,340 |
|
|
|
4,422 |
|
|
|
4,679 |
|
|
|
6,860 |
|
|
|
7,046 |
|
|
Total Noninterest Income |
|
|
41,378 |
|
|
|
44,431 |
|
|
|
42,970 |
|
|
|
45,258 |
|
|
|
41,734 |
|
|
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and Benefits |
|
|
56,447 |
|
|
|
56,161 |
|
|
|
56,251 |
|
|
|
50,200 |
|
|
|
51,951 |
|
|
Net Occupancy |
|
|
3,079 |
|
|
|
5,047 |
|
|
|
9,090 |
|
|
|
14,536 |
|
|
|
7,281 |
|
|
Net Equipment |
|
|
8,924 |
|
|
|
8,796 |
|
|
|
8,878 |
|
|
|
9,574 |
|
|
|
9,223 |
|
|
Data Processing |
|
|
4,722 |
|
|
|
4,557 |
|
|
|
6,322 |
|
|
|
4,604 |
|
|
|
4,691 |
|
|
Professional Fees |
|
|
2,948 |
|
|
|
3,114 |
|
|
|
3,406 |
|
|
|
3,174 |
|
|
|
2,743 |
|
|
FDIC Insurance |
|
|
1,594 |
|
|
|
1,669 |
|
|
|
1,654 |
|
|
|
1,484 |
|
|
|
1,282 |
|
|
Other |
|
|
18,805 |
|
|
|
17,183 |
|
|
|
13,264 |
|
|
|
15,082 |
|
|
|
12,778 |
|
|
Total Noninterest Expense |
|
|
96,519 |
|
|
|
96,527 |
|
|
|
98,865 |
|
|
|
98,654 |
|
|
|
89,949 |
|
|
Income Before Provision for Income Taxes |
|
|
82,078 |
|
|
|
87,518 |
|
|
|
78,974 |
|
|
|
50,903 |
|
|
|
47,351 |
|
|
Provision for Income Taxes |
|
|
20,025 |
|
|
|
19,985 |
|
|
|
19,025 |
|
|
|
8,589 |
|
|
|
9,511 |
|
|
Net Income |
|
$ |
62,053 |
|
|
$ |
67,533 |
|
|
$ |
59,949 |
|
|
$ |
42,314 |
|
|
$ |
37,840 |
|
|
Preferred Stock Dividends |
|
|
1,006 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Net Income Available to Common Shareholders |
|
$ |
61,047 |
|
|
$ |
67,533 |
|
|
$ |
59,949 |
|
|
$ |
42,314 |
|
|
$ |
37,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share |
|
$ |
1.53 |
|
|
$ |
1.69 |
|
|
$ |
1.51 |
|
|
$ |
1.06 |
|
|
$ |
0.95 |
|
|
Diluted Earnings Per Common Share |
|
$ |
1.52 |
|
|
$ |
1.68 |
|
|
$ |
1.50 |
|
|
$ |
1.06 |
|
|
$ |
0.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Totals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and Leases |
|
$ |
12,072,750 |
|
|
$ |
12,041,378 |
|
|
$ |
12,140,703 |
|
|
$ |
11,940,020 |
|
|
$ |
11,793,608 |
|
|
Total Assets |
|
|
22,965,383 |
|
|
|
22,672,183 |
|
|
|
21,947,271 |
|
|
|
20,603,651 |
|
|
|
20,109,489 |
|
|
Total Deposits |
|
|
20,493,678 |
|
|
|
20,169,709 |
|
|
|
19,556,651 |
|
|
|
18,211,621 |
|
|
|
17,738,883 |
|
|
Total Shareholders' Equity |
|
|
1,597,109 |
|
|
|
1,583,531 |
|
|
|
1,360,221 |
|
|
|
1,374,507 |
|
|
|
1,361,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average Assets |
|
|
1.07 |
|
% |
|
1.23 |
|
% |
|
1.15 |
|
% |
|
0.83 |
|
% |
|
0.76 |
|
% |
Return on Average Shareholders' Equity |
|
|
15.41 |
|
|
|
19.17 |
|
|
|
17.65 |
|
|
|
12.26 |
|
|
|
11.01 |
|
|
Return on Average Common Equity |
|
|
17.08 |
|
|
|
19.61 |
|
|
|
17.65 |
|
|
|
12.26 |
|
|
|
11.01 |
|
|
Efficiency Ratio 1 |
|
|
57.38 |
|
|
|
57.47 |
|
|
|
60.45 |
|
|
|
59.88 |
|
|
|
54.22 |
|
|
Net Interest Margin 2 |
|
|
2.32 |
|
|
|
2.37 |
|
|
|
2.43 |
|
|
|
2.48 |
|
|
|
2.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income). |
|||||||||||||||||||||
2 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets. |
Bank of Hawaii Corporation and Subsidiaries |
|
|
|
|
|
|
|||||||||||||||||
Hawaii Economic Trends |
|
|
Table 15 |
||||||||||||||||||||
|
Eight Months Ended |
|
|
Year Ended |
|||||||||||||||||||
($ in millions; jobs in thousands) |
August 31, 2021 |
|
|
December 31, 2020 |
December 31, 2019 |
||||||||||||||||||
Hawaii Economic Trends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State General Fund Revenues 1 |
$ |
5,325.4 |
|
|
21.2 |
|
% |
$ |
6,415.1 |
|
|
|
(12.3 |
) |
% |
$ |
7,316.5 |
|
|
|
5.5 |
|
% |
General Excise and Use Tax Revenue 1 |
$ |
2,367.9 |
|
|
11.6 |
|
% |
$ |
3,038.8 |
|
|
|
(15.6 |
) |
% |
$ |
3,602.2 |
|
|
|
5.1 |
|
% |
Jobs 2 |
|
601.8 |
|
|
|
|
|
|
588.2 |
|
|
|
|
|
|
|
659.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August 31, |
|
|
December 31, |
|||||||||
(spot rates) |
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
2020 |
2019 |
|||||||
Unemployment 3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statewide |
|
|
|
|
|
|
|
|
|
|
|
|
7.0 |
|
% |
|
10.3 |
|
% |
|
2.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oahu |
|
|
|
|
|
|
|
|
|
|
|
|
6.0 |
|
|
|
9.3 |
|
|
|
2.0 |
|
|
Island of Hawaii |
|
|
|
|
|
|
|
|
|
|
|
|
6.6 |
|
|
|
10.1 |
|
|
|
2.5 |
|
|
Maui |
|
|
|
|
|
|
|
|
|
|
|
|
8.5 |
|
|
|
14.3 |
|
|
|
2.0 |
|
|
Kauai |
|
|
|
|
|
|
|
|
|
|
|
|
8.9 |
|
|
|
13.9 |
|
|
|
2.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
December 31, |
||||||||||||
(percentage change, except months of inventory) |
|
|
|
|
|
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
||||
Housing Trends (Single Family Oahu) 4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Median Home Price |
|
|
|
|
|
|
|
|
20.2 |
|
% |
|
5.2 |
|
% |
|
(0.1 |
) |
% |
|
4.6 |
|
% |
Home Sales Volume (units) |
|
|
|
|
|
|
|
|
24.2 |
|
% |
|
2.3 |
|
% |
|
3.9 |
|
% |
|
(7.7 |
) |
% |
Months of Inventory |
|
|
|
|
|
|
|
|
1.2 |
|
|
|
1.4 |
|
|
|
2.5 |
|
|
|
2.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monthly Visitor Arrivals, |
|
|
Percentage Change |
||||||||||||
(in thousands) |
|
|
|
|
|
|
|
Not Seasonally Adjusted |
|
|
from Previous Year |
||||||||||||
Tourism 5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
722.4 |
|
|
|
|
|
|
|
3,133.1 |
|
|
July 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
879.6 |
|
|
|
|
|
|
|
3,798.4 |
|
|
June 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
791.1 |
|
|
|
|
|
|
|
4,534.7 |
|
|
May 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
629.7 |
|
|
|
|
|
|
|
6,807.4 |
|
|
April 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
484.1 |
|
|
|
|
|
|
|
10,506.3 |
|
|
March 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
439.8 |
|
|
|
|
|
|
|
1.1 |
|
|
February 28, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
235.3 |
|
|
|
|
|
|
|
(71.6 |
) |
|
January 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
172.0 |
|
|
|
|
|
|
|
(80.1 |
) |
|
December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
235.8 |
|
|
|
|
|
|
|
(75.2 |
) |
|
November 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
183.8 |
|
|
|
|
|
|
|
(77.3 |
) |
|
October 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
76.6 |
|
|
|
|
|
|
|
(90.4 |
) |
|
September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
18.9 |
|
|
|
|
|
|
|
(97.4 |
) |
|
August 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
22.3 |
|
|
|
|
|
|
|
(97.6 |
) |
|
July 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
22.6 |
|
|
|
|
|
|
|
(97.7 |
) |
|
June 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
17.1 |
|
|
|
|
|
|
|
(98.2 |
) |
|
May 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
9.1 |
|
|
|
|
|
|
|
(98.9 |
) |
|
April 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
4.6 |
|
|
|
|
|
|
|
(99.5 |
) |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
434.9 |
|
|
|
|
|
|
|
(53.7 |
) |
|
February 29, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
828.1 |
|
|
|
|
|
|
|
5.8 |
|
|
January 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
862.6 |
|
|
|
|
|
|
|
5.1 |
|
|
December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
952.4 |
|
|
|
|
|
|
|
5.8 |
|
|
November 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
809.1 |
|
|
|
|
|
|
|
3.9 |
|
|
October 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
796.2 |
|
|
|
|
|
|
|
4.3 |
|
|
September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
738.2 |
|
|
|
|
|
|
|
3.1 |
|
|
August 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
926.4 |
|
|
|
|
|
|
|
9.6 |
|
|
July 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
995.2 |
|
|
|
|
|
|
|
5.9 |
|
|
June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
951.6 |
|
|
|
|
|
|
|
6.1 |
|
|
May 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
841.4 |
|
|
|
|
|
|
|
4.6 |
|
|
April 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
856.3 |
|
|
|
|
|
|
|
6.6 |
|
|
March 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
939.1 |
|
|
|
|
|
|
|
3.9 |
|
|
February 28, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
782.7 |
|
|
|
|
|
|
|
0.5 |
|
|
January 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
820.6 |
|
|
|
|
|
|
|
3.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Source: Hawaii Department of Business, Economic Development & Tourism |
|||||||||||||||||||||||
2 Source: U. S. Bureau of Labor Statistics |
|||||||||||||||||||||||
3 Source: UHERO |
|||||||||||||||||||||||
4 Source: Honolulu Board of REALTORS |
|||||||||||||||||||||||
5 Source: Hawaii Tourism Authority |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of Hawaii Corporation third quarter 2021 financial report October 25, 2021 Exhibit 99.2
this presentation, and other statements made by the Company in connection with it, may contain forward-looking statements concerning, among other things, forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. we have not committed to update forward-looking statements to reflect later events or circumstances. disclosure 2 forward-looking statements
3
unemployment experience & forecast source: UHERO, seasonally adjusted Hawaii unemployment rate 4
economic forecast Hawaii unemployment rate 5 source: UHERO
Hawaii real estate market Oahu market indicators – 2021 vs 2020 6 source: Honolulu Board of Realtors, compiled from MLS data
daily arrivals total passenger count* 7 *source: Department of Business, Economic Development, and Tourism, excluding from Canada 7/8/21: testing and quarantine lifted for fully vaccinated U.S. travelers 10/15/20: launch of Safe Travels program 8/23/21: Gov. Ige releases statement urging visitors to refrain from non-essential travel
COVID-19 cases 8 source: Washington Post as of 10/21/21
COVID-19 vaccinations 9 source: Hawaii State Department of Health as of 10/22/21 70.7% total population fully vaccinated 79.2% total population at least one dose administered 82.8% 12yr+ population fully vaccinated
3Q financial update
11 core customers continue to drive growth in balances growth from core customers $ in millions note: numbers may not add up due to rounding
12 ample liquidity continuing to build low cost, long duration deposits to fund future growth excess liquidity deployed into high-quality, low-risk investment portfolio
13 positioned for higher rates ample liquidity, cash flow and healthy variable loan mix position us well for higher rate environment note: S&P Regional Banking Index excluding banks greater than $50bn; 3Q numbers are preliminary
financial summary $ in millions, except per share amounts 14 note: numbers may not add up due to rounding
disciplined expenses $ in millions 15 disciplined expense management amidst continued balance sheet growth *volume-related expense growth primarily related to higher mortgage production, broker charges and higher FDIC insurance for deposits. note: numbers may not add up due to rounding 2021 expenses up slightly from pre-pandemic 2019 with investments in innovation and variable expenses partially offset by other cost savings and efficiencies NIE CAGR: 1.5% Honolulu avg inflation: 2.4%
performance metrics 16
17 strong risk-based capital fortress capital position note: 3Q21 regulatory capital ratios are preliminary
3Q credit update
customer relief update 19 100% secured 95% paying interest commercial consumer 99.2% of former deferrals are current 94.9% decline in deferrals since June 30, 2020
credit quality $ in millions 20 * 64% of total criticized in CRE with 60% wtd avg LTV
reserve trend 21 $ in millions allowance for credit losses note: balances and coverage ratio based on allowance for credit losses – loans and leases
Q & A
appendix
economic forecast source: UHERO 24
growing low cost deposits 25 continuing to build very low cost, long duration funding $ in millions
26 note: historical dividends adjusted for stock splits unbroken history of dividends recession COVID-19
loan portfolio excluding PPP 27 40% commercial 70% real estate secured wtd avg LTV 56% 61% w/ BOH ≥ 10 yrs avg balance $0.6MM CRE C&I residential mortgage home equity auto leasing other construction 60% consumer 84% real estate secured wtd avg LTV 56% 57% w/ BOH ≥ 10 yrs 78% of portfolio secured with quality real estate with combined weighted average loan to value of 56% note: excludes $276MM in PPP loan balances including deferred costs and fees
28 100% secured with 71% weighted average LTV as of 9/30/21 consumer relief $8 million (0.1%) 59% wtd avg CLTV 686 wtd avg FICO 23% <700 FICO / >70% CLTV 72% wtd avg LTV 721 wtd avg FICO 28% <700 FICO / >70% LTV note: zero remaining deferrals in indirect and other (direct installment loans and auto lease)
29 100% secured with 39% weighted average LTV as of 9/30/21 100% continue to pay interest commercial relief $130 million (1.1%) 39% wtd avg LTV 97% ≤ 65% LTV $5.4MM avg loan note: zero remaining deferrals in leasing or construction
high risk industries $1,489 million (12%) / $1,373 million (11%) excluding PPP 30
retail $695 million (6%) – excluding PPP 31 93% real estate secured 56% wtd avg LTV average exposure $3.5MM largest exposure $39MM 63% of portfolio has an LTV ≤ 65% 98.3% is secured or has essential anchor 0.0% unsecured and deferred 100% secured or paying interest
lodging $521 million (4%) – excluding PPP 32 82% real estate secured 52% wtd avg LTV average exposure $9.4MM largest exposure $40MM 81% of portfolio has an LTV ≤ 65% 90% of unsecured outstandings to global hotel and timeshare brands 0.1% unsecured and deferred 100% secured or paying interest
restaurant / entertainment $157 million (1%) – excluding PPP 33 42% real estate secured 67% wtd avg LTV average exposure $1.9MM largest exposure $29MM 38% of portfolio has an LTV ≤ 65% 0.0% unsecured and deferred 100% secured or paying interest