Bank of Hawaii Corporation 2019 Financial Results

  • 2019 Record Earnings of $5.56 Per Diluted Share
  • 2019 Net Income $225.9 Million
  • Diluted Earnings Per Share $1.45 for the Fourth Quarter of 2019
  • Net Income $58.1 Million for the Fourth Quarter of 2019
  • Board of Directors Declares Dividend of $0.67 Per Share
  • Board of Directors Increases Share Repurchase Authorization by $100 Million

HONOLULU--()--Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $5.56 for the full year of 2019, an increase of 6.3 percent from diluted earnings per share of $5.23 in 2018. Net income for the year was $225.9 million, up $6.3 million or 2.9 percent from net income of $219.6 million in the previous year. The return on average assets for the full year of 2019 was 1.29 percent unchanged from 1.29 percent in 2018. The return on average equity for the full year of 2019 was 17.65 percent compared with 17.63 percent in 2018. The efficiency ratio for the full year of 2019 improved to 55.68 percent compared with 56.71 percent in 2018.

“Bank of Hawaii finished 2019 with strong financial performance and made significant progress on our strategic initiatives,” said Peter Ho, Chairman, President, and CEO. “Our loan balances grew 5.2 percent in 2019 and our deposit balances grew 5.0 percent compared with 2018. Our asset quality, capital and liquidity all remain strong. During the fourth quarter we continued to reduce our leveraged lease exposure with the early buyout of a lease which reduced our loan balances by $42.7 million.”

Diluted earnings per share were $1.45 for the fourth quarter of 2019, an increase from $1.29 in the third quarter of 2019 and $1.30 in the fourth quarter of 2018. Net income for the fourth quarter of 2019 was $58.1 million, up from $52.1 million in the previous quarter and $53.9 million in the same quarter last year. The return on average assets for the fourth quarter of 2019 was 1.29 percent compared with 1.17 percent in the third quarter of 2019 and 1.26 percent in the fourth quarter last year. The return on average equity for the fourth quarter of 2019 was 17.84 percent compared with 16.02 percent in the third quarter of 2019 and 17.05 percent in the fourth quarter last year. The efficiency ratio for the fourth quarter of 2019 was 54.26 percent compared with 58.55 percent in the previous quarter and 57.75 percent in the same quarter last year.

Financial Highlights

Net interest income, on a taxable-equivalent basis, was $499.9 million for the full year of 2019, an increase of $8.4 million from net interest income of $491.5 million in 2018. Net interest income, on a taxable-equivalent basis, for the fourth quarter of 2019 was $124.2 million, a decrease of $1.0 million compared with net interest income of $125.2 million in the third quarter of 2019 and the fourth quarter last year. Analyses of changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin for the full year of 2019 was 3.03 percent, a decrease of 2 basis points from the net interest margin of 3.05 percent in 2018. The net interest margin was 2.95 percent in the fourth quarter of 2019, a decrease of 6 basis points from the previous quarter and 15 basis points from the same quarter last year.

The provision for credit losses for the full year of 2019 was $16.0 million compared with a provision for credit losses of $13.4 million in 2018. Results for the fourth quarter of 2019 included a provision for credit losses of $4.8 million compared with $4.3 million in the previous quarter and $2.0 million in the same quarter last year.

Noninterest income for the full year of 2019 was $183.3 million, an increase of $14.4 million or 8.5 percent compared with noninterest income of $168.9 million in 2018. The increase from the previous year was primarily due to growth in mortgage banking income, higher gains on sales of leased assets, increased customer derivative activity, and higher service charges on deposits that were partially offset by a decline in credit card fees resulting from the sale of the credit card portfolio in the fourth quarter of 2018. Noninterest income was $47.7 million in the fourth quarter of 2019 compared with noninterest income of $46.5 million in the third quarter of 2019 and $42.1 million in the fourth quarter of 2018. Noninterest income in the fourth quarter of 2019 included a gain of $3.8 million related to the early buyout of a leveraged lease that was partially offset by a reduction in mortgage banking income and customer derivative activity. Noninterest income during the third quarter of 2019 included a negative adjustment of $0.5 million related to a change in the Visa Class B conversion. There were no significant items in noninterest income during the fourth quarter of 2018.

Noninterest expense for the full year of 2019 was $379.2 million, an increase of $7.6 million or 2.0 percent compared with noninterest expense of $371.6 million in 2018. The increase from the previous year was primarily due to increased depreciation and equipment costs related to the Company’s strategic initiatives, higher salaries and benefits, and increased legal costs that were partially offset by a reduction in credit card expenses due to the sale of the portfolio. Noninterest expense was $93.1 million in the fourth quarter of 2019 compared with noninterest expense of $100.3 million in the third quarter of 2019 and $95.9 million in the fourth quarter of 2018. There were no significant items in noninterest expense during the fourth quarter of 2019. Noninterest expense during the third quarter of 2019 included a $6.0 million increase in the legal reserve. Noninterest expense in the fourth quarter of 2018 included $3.0 million in one-time significant items related to a medical expense, an operational loss, and legal expenses. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the full year of 2019 was 20.96 percent compared with the effective tax rate of 18.73 percent for 2018. The effective tax rate for the fourth quarter of 2019 was 21.15 percent compared with 22.08 percent in the previous quarter and 20.92 percent during the same quarter last year.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services and Private Banking, and Treasury & Other. Results are determined based on the Company’s internal financial management reporting process and organizational structure. Selected financial information for the business segments is included in Tables 13a and 13b.

Asset Quality

The Company’s strong overall asset quality continued to remain stable during the fourth quarter of 2019. Total non-performing assets were $20.1 million at December 31, 2019, down from $21.6 million at September 30, 2019 and up from $12.9 million at December 31, 2018. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.18 percent at December 31, 2019 compared with 0.20 percent at September 30, 2019 and 0.12 percent at December 31, 2018.

Accruing loans and leases past due 90 days or more were $8.4 million at December 31, 2019 compared with $6.1 million at September 30, 2019 and $6.6 million at December 31, 2018. Restructured loans and leases not included in non-accrual loans or accruing loans past due 90 days or more were $63.1 million at December 31, 2019 compared with $46.2 million at September 30, 2019 and $48.7 million at December 31, 2018. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net charge-offs for the full year of 2019 were $12.7 million or 0.12 percent of total average loans and leases compared with net charge-offs of $14.1 million or 0.14 percent of total average loans and leases in 2018. Net charge-offs during the fourth quarter of 2019 were $3.7 million or 0.13 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $6.2 million partially offset by recoveries of $2.6 million. Net charge-offs during the third quarter of 2019 were $3.0 million or 0.11 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $5.8 million and recoveries of $2.8 million. Net charge-offs during the fourth quarter of 2018 were $4.0 million or 0.15 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $6.9 million and recoveries of $2.9 million.

The allowance for loan and lease losses was $110.0 million at December 31, 2019, an increase from $108.9 million at September 30, 2019 and $106.7 million at December 31, 2018. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.00 percent at December 31, 2019, unchanged from September 30, 2019 and down 2 basis points from December 31, 2018. The total reserve for unfunded commitments of $6.8 million at December 31, 2019 was unchanged from the prior quarter and the same quarter last year. Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets were $18.10 billion at December 31, 2019, an increase of 2.4 percent from total assets of $17.67 billion at September 30, 2019 and an increase of 5.6 percent from total assets of $17.14 billion at December 31, 2018. Average total assets were $17.54 billion during the full year of 2019, an increase of 3.3 percent from average total assets of $16.97 billion during 2018.

The investment securities portfolio was $5.66 billion at December 31, 2019, an increase of 2.2 percent from total securities of $5.54 billion at September 30, 2019 and an increase of 3.1 percent from total securities of $5.49 billion at December 31, 2018. The investment securities portfolio remains largely comprised of securities issued by U.S. government agencies and included $2.62 billion in securities available for sale and $3.04 billion in securities held to maturity at December 31, 2019.

Total loans and leases were $10.99 billion at December 31, 2019, an increase of 1.0 percent from total loans and leases of $10.88 billion at September 30, 2019 and 5.2 percent from total loans and leases of $10.45 billion at December 31, 2018. Adjusted for the previously mentioned early buyout of a leveraged lease, total loans increased 1.4 percent from the previous quarter and 5.6 percent from the same quarter last year.

The commercial portfolio grew to $4.21 billion at the end of the fourth quarter of 2019, an increase of 1.4 percent from commercial loans of $4.16 billion at the end of the third quarter of 2019 and 5.9 percent from commercial loans of $3.98 billion at the end of the fourth quarter last year. Adjusted for the previously mentioned early buyout of a leveraged lease, commercial loans increased 2.4 percent from the previous quarter and 7.0 percent from the same quarter last year. Consumer loans grew to $6.78 billion at December 31, 2019, an increase of 0.8 percent from consumer loans of $6.72 billion at the end of the third quarter of 2019 and 4.8 percent from consumer loans of $6.47 billion at the end of the fourth quarter last year. Average total loans and leases during the full year of 2019 were $10.69 billion, an increase of 6.4 percent from average loans and leases of $10.04 billion during 2018. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $15.78 billion at December 31, 2019, an increase of 2.9 percent from total deposits of $15.34 billion at September 30, 2019 and an increase of 5.0 percent from total deposits of $15.03 billion at December 31, 2018. Consumer deposits increased to $8.12 billion at December 31, 2019, an increase of 2.9 percent from consumer deposits of $7.89 billion at the end of the third quarter of 2019 and an increase of 5.1 percent from $7.73 billion at the end of the fourth quarter last year. Commercial deposits increased to $6.32 billion at the end of the fourth quarter of 2019, an increase of 2.8 percent from $6.15 billion at the end of the third quarter of 2019 and an increase of 3.7 percent from $6.10 billion at the end of the fourth quarter last year. Other deposits, including public funds, were $1.34 billion at December 31, 2019, an increase of 3.7 percent from total other deposits of $1.29 billion at September 30, 2019 and an increase of 11.6 percent from $1.20 billion at December 31, 2018. Average total deposits during the full year of 2019 were $15.23 billion, an increase of 3.2 percent compared with average total deposits of $14.76 billion during 2018. Deposit balances are summarized in Tables 7a, 7b, and 10.

During the fourth quarter of 2019, the Company repurchased 336.2 thousand shares of common stock at a total cost of $30.0 million under its share repurchase program. The average cost was $89.11 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through December 31, 2019, the Company has repurchased 56.9 million shares and returned nearly $2.3 billion to shareholders at an average cost of $40.38 per share. From January 2 through January 24, 2020 the Company repurchased an additional 71.5 thousand shares of common stock at an average cost of $93.50 per share repurchased. The Company’s Board of Directors increased the authorization under the share repurchase program by an additional $100.0 million. Remaining buyback authority under the share repurchase program was $120.4 million at January 24, 2020.

Total shareholders’ equity was $1.29 billion at December 31, 2019, down slightly from September 30, 2019, and up from $1.27 billion at December 31, 2018. The Tier 1 Capital Ratio was 12.18 percent at December 31, 2019 compared with 12.33 percent at September 30, 2019 and 13.07 percent at December 31, 2018. The Tier 1 Leverage Ratio at December 31, 2019 was 7.25 percent compared with 7.32 percent at September 30, 2019 and 7.60 percent at December 31, 2018.

The Company’s Board of Directors declared a quarterly cash dividend of $0.67 per share on the Company’s outstanding shares. The dividend will be payable on March 13, 2020 to shareholders of record at the close of business on February 28, 2020.

Hawaii Economy

General economic conditions in Hawaii remained stable during 2019 due to low interest rates, a relatively healthy construction sector and growing visitor arrivals. For the first eleven months of 2019 total visitor arrivals increased 5.4 percent and visitor spending increased 0.5 percent compared to the same period in 2018. Total visitor days rose 2.7 percent compared to the first eleven months of 2018.

The statewide seasonally-adjusted unemployment rate in Hawaii continued to remain low at 2.6 percent in December 2019 compared with 3.5 percent nationally.

Real estate prices on Oahu remained steady during 2019 with a modest decline in total annual sales and stable median prices. For the full year of 2019, the median sales price of a single-family home on Oahu decreased 0.1 percent and the median price of a condominium on Oahu increased 1.2 percent compared with the same period in 2018. The volume of single-family home sales on Oahu increased 3.9 percent and the volume of condominium sales on Oahu decreased 4.8 percent in 2019 compared with 2018. As of December 31, 2019, months of inventory of single-family homes and condominiums on Oahu were 2.5 months and 3.4 months, respectively. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its 2019 financial results today at 8:00 a.m. Hawaii Time (1:00 p.m. Eastern Time). The call will be accessible via teleconference and via the investor relations link of Bank of Hawaii Corporation’s website, www.boh.com. The toll-free number 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. A replay will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, January 27, 2020. 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 1787817 when prompted. In addition, a 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,” such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. 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, 2018, which was filed with the U.S. Securities and Exchange Commission. We do not promise to update forward-looking statements to reflect later events or circumstances

Bank of Hawaii Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawaii, American Samoa, 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
Financial Highlights Table 1
Three Months Ended Year Ended
December 31, September 30, December 31, December 31,
(dollars in thousands, except per share amounts)

2019

2019

2018

2019

2018

For the Period:
Operating Results
Net Interest Income

$

123,885

$

124,896

$

123,973

$

497,715

$

486,352

Provision for Credit Losses

 

4,750

 

4,250

 

2,000

 

16,000

 

13,425

Total Noninterest Income

 

47,702

 

46,507

 

42,108

 

183,338

 

168,923

Total Noninterest Expense

 

93,096

 

100,349

 

95,911

 

379,227

 

371,624

Net Income

 

58,143

 

52,052

 

53,911

 

225,913

 

219,602

Basic Earnings Per Share

 

1.46

 

1.30

 

1.30

 

5.59

 

5.26

Diluted Earnings Per Share

 

1.45

 

1.29

 

1.30

 

5.56

 

5.23

Dividends Declared Per Share

 

0.67

 

0.65

 

0.62

 

2.59

 

2.34

 
Performance Ratios
Return on Average Assets

 

1.29

%

 

1.17

%

 

1.26

%

 

1.29

%

 

1.29

%

Return on Average Shareholders' Equity

 

17.84

 

16.02

 

17.05

 

17.65

 

17.63

Efficiency Ratio 1

 

54.26

 

58.55

 

57.75

 

55.68

 

56.71

Net Interest Margin 2

 

2.95

 

3.01

 

3.10

 

3.03

 

3.05

Dividend Payout Ratio 3

 

45.89

 

50.00

 

47.69

 

46.33

 

44.49

Average Shareholders' Equity to Average Assets

 

7.26

 

7.32

 

7.39

 

7.30

 

7.34

 
Average Balances
Average Loans and Leases

$

10,878,672

$

10,770,720

$

10,320,051

$

10,688,424

$

10,043,661

Average Assets

 

17,821,004

 

17,605,394

 

16,988,550

 

17,537,570

 

16,970,992

Average Deposits

 

15,441,097

 

15,330,691

 

14,779,511

 

15,228,066

 

14,757,724

Average Shareholders' Equity

 

1,292,930

 

1,289,417

 

1,254,704

 

1,280,082

 

1,245,672

 
Per Share of Common Stock
Book Value

$

32.14

$

32.00

$

30.56

$

32.14

$

30.56

Tangible Book Value

 

31.35

 

31.22

 

29.80

 

31.35

 

29.80

Market Value
Closing

 

95.16

 

85.93

 

67.32

 

95.16

 

67.32

High

 

95.68

 

88.20

 

82.80

 

95.68

 

89.09

Low

 

81.29

 

79.13

 

63.64

 

66.54

 

63.64

 

December 31,

September 30,

December 31,

2019

2019

2018

As of Period End:
Balance Sheet Totals
Loans and Leases

$

10,990,892

$

10,881,298

$

10,448,774

Total Assets

 

18,095,496

 

17,672,140

 

17,143,974

Total Deposits

 

15,784,482

 

15,340,752

 

15,027,242

Other Debt

 

85,565

 

110,585

 

135,643

Total Shareholders' Equity

 

1,286,832

 

1,291,490

 

1,268,200

 
Asset Quality
Non-Performing Assets

$

20,117

$

21,645

$

12,930

Allowance for Loan and Lease Losses

 

110,027

 

108,936

 

106,693

Allowance to Loans and Leases Outstanding

 

1.00

%

 

1.00

%

 

1.02

%

 
Capital Ratios
Common Equity Tier 1 Capital Ratio

 

12.18

%

 

12.33

%

 

13.07

%

Tier 1 Capital Ratio

 

12.18

 

12.33

 

13.07

Total Capital Ratio

 

13.28

 

13.44

 

14.21

Tier 1 Leverage Ratio

 

7.25

 

7.32

 

7.60

Total Shareholders' Equity to Total Assets

 

7.11

 

7.31

 

7.40

Tangible Common Equity to Tangible Assets 4

 

6.95

 

7.14

 

7.23

Tangible Common Equity to Risk-Weighted Assets 4

 

11.85

 

12.10

 

12.52

 
Non-Financial Data
Full-Time Equivalent Employees

 

2,124

 

2,124

 

2,122

Branches

 

68

 

67

 

69

ATMs

 

387

 

379

 

382

 
1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
2 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
3 Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.
4 Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 “Reconciliation of Non-GAAP Financial Measures.”
Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures Table 2
December 31, September 30, December 31,
(dollars in thousands)

2019

2019

2018

 
Total Shareholders' Equity

$

1,286,832

$

1,291,490

$

1,268,200

Less: Goodwill

 

31,517

 

31,517

 

31,517

Tangible Common Equity

$

1,255,315

$

1,259,973

$

1,236,683

 
Total Assets

$

18,095,496

$

17,672,140

$

17,143,974

Less: Goodwill

 

31,517

 

31,517

 

31,517

Tangible Assets

$

18,063,979

$

17,640,623

$

17,112,457

 
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements

$

10,589,061

$

10,416,560

$

9,878,904

 
Total Shareholders' Equity to Total Assets

 

7.11%

 

7.31%

 

7.40%

Tangible Common Equity to Tangible Assets (Non-GAAP)

 

6.95%

 

7.14%

 

7.23%

 
Tier 1 Capital Ratio

 

12.18%

 

12.33%

 

13.07%

Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)

 

11.85%

 

12.10%

 

12.52%

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income Table 3
Three Months Ended Year Ended
December 31, September 30, December 31, December 31,
(dollars in thousands, except per share amounts)

2019

 

2019

 

2018

 

2019

 

2018

Interest Income
Interest and Fees on Loans and Leases

$

109,223

 

$

110,877

 

$

107,404

 

$

439,012

 

$

410,597

 

Income on Investment Securities
Available-for-Sale

 

16,158

 

 

17,512

 

 

13,043

 

 

62,174

 

 

50,152

 

Held-to-Maturity

 

18,750

 

 

18,796

 

 

21,482

 

 

81,616

 

 

84,310

 

Deposits

 

8

 

 

9

 

 

10

 

 

41

 

 

34

 

Funds Sold

 

723

 

 

656

 

 

727

 

 

3,553

 

 

3,723

 

Other

 

239

 

 

233

 

 

352

 

 

1,001

 

 

1,357

 

Total Interest Income

 

145,101

 

 

148,083

 

 

143,018

 

 

587,397

 

 

550,173

 

Interest Expense
Deposits

 

16,407

 

 

18,055

 

 

13,172

 

 

68,374

 

 

41,143

 

Securities Sold Under Agreements to Repurchase

 

4,071

 

 

4,257

 

 

4,671

 

 

17,522

 

 

18,519

 

Funds Purchased

 

25

 

 

146

 

 

440

 

 

840

 

 

609

 

Short-Term Borrowings

 

-

 

 

1

 

 

88

 

 

38

 

 

145

 

Other Debt

 

713

 

 

728

 

 

674

 

 

2,908

 

 

3,405

 

Total Interest Expense

 

21,216

 

 

23,187

 

 

19,045

 

 

89,682

 

 

63,821

 

Net Interest Income

 

123,885

 

 

124,896

 

 

123,973

 

 

497,715

 

 

486,352

 

Provision for Credit Losses

 

4,750

 

 

4,250

 

 

2,000

 

 

16,000

 

 

13,425

 

Net Interest Income After Provision for Credit Losses

 

119,135

 

 

120,646

 

 

121,973

 

 

481,715

 

 

472,927

 

Noninterest Income
Trust and Asset Management

 

11,157

 

 

10,930

 

 

10,558

 

 

44,233

 

 

43,877

 

Mortgage Banking

 

3,199

 

 

4,864

 

 

2,148

 

 

13,686

 

 

8,437

 

Service Charges on Deposit Accounts

 

7,835

 

 

7,592

 

 

7,562

 

 

30,074

 

 

28,811

 

Fees, Exchange, and Other Service Charges

 

14,533

 

 

14,900

 

 

14,576

 

 

57,893

 

 

57,482

 

Investment Securities Gains (Losses), Net

 

(906

)

 

(1,469

)

 

(841

)

 

(3,986

)

 

(3,938

)

Annuity and Insurance

 

1,272

 

 

1,278

 

 

1,409

 

 

6,934

 

 

5,822

 

Bank-Owned Life Insurance

 

1,879

 

 

1,647

 

 

1,941

 

 

7,015

 

 

7,199

 

Other

 

8,733

 

 

6,765

 

 

4,755

 

 

27,489

 

 

21,233

 

Total Noninterest Income

 

47,702

 

 

46,507

 

 

42,108

 

 

183,338

 

 

168,923

 

Noninterest Expense
Salaries and Benefits

 

51,664

 

 

54,345

 

 

54,856

 

 

216,106

 

 

213,208

 

Net Occupancy

 

 

8,824

 

 

 

8,803

 

 

 

8,918

 

 

 

33,800

 

 

 

34,742

 

Net Equipment

 

7,930

 

 

7,637

 

 

6,364

 

 

29,295

 

 

23,852

 

Data Processing

 

4,828

 

 

4,676

 

 

5,151

 

 

18,757

 

 

17,846

 

Professional Fees

 

3,257

 

 

2,184

 

 

2,467

 

 

10,071

 

 

9,992

 

FDIC Insurance

 

1,376

 

 

1,257

 

 

1,336

 

 

5,192

 

 

7,732

 

Other

 

15,217

 

 

21,447

 

 

16,819

 

 

66,006

 

 

64,252

 

Total Noninterest Expense

 

93,096

 

 

100,349

 

 

95,911

 

 

379,227

 

 

371,624

 

Income Before Provision for Income Taxes

 

73,741

 

 

66,804

 

 

68,170

 

 

285,826

 

 

270,226

 

Provision for Income Taxes

 

15,598

 

 

14,752

 

 

14,259

 

 

59,913

 

 

50,624

 

Net Income

$

58,143

 

$

52,052

 

$

53,911

 

$

225,913

 

$

219,602

 

Basic Earnings Per Share

$

1.46

 

$

1.30

 

$

1.30

 

$

5.59

 

$

5.26

 

Diluted Earnings Per Share

$

1.45

 

$

1.29

 

$

1.30

 

$

5.56

 

$

5.23

 

Dividends Declared Per Share

$

0.67

 

$

0.65

 

$

0.62

 

$

2.59

 

$

2.34

 

Basic Weighted Average Shares

 

39,880,619

 

 

40,190,508

 

 

41,325,456

 

 

40,384,328

 

 

41,714,770

 

Diluted Weighted Average Shares

 

40,179,016

 

 

40,450,742

 

 

41,601,649

 

 

40,649,570

 

 

41,999,399

 

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income Table 4
Three Months Ended Year Ended
December 31, September 30, December 31, December 31,
(dollars in thousands)

2019

 

2019

 

2018

 

2019

 

2018

Net Income

$

58,143

 

$

52,052

$

53,911

 

$

225,913

 

$

219,602

 

Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities

 

(5,856

)

 

5,405

 

11,169

 

 

22,677

 

 

(6,525

)

Defined Benefit Plans

 

(3,482

)

 

245

 

(2,974

)

 

(2,746

)

 

(2,326

)

Other Comprehensive Income (Loss)

 

(9,338

)

 

5,650

 

8,195

 

 

19,931

 

 

(8,851

)

Comprehensive Income

$

48,805

 

$

57,702

$

62,106

 

$

245,844

 

$

210,751

 

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition Table 5
December 31, September 30, December 31,
(dollars in thousands)

2019

2019

2018

Assets
Interest-Bearing Deposits in Other Banks

$

4,979

 

$

2,946

 

$

3,028

 

Funds Sold

 

254,574

 

 

108,446

 

 

198,860

 

Investment Securities
Available-for-Sale

 

2,619,003

 

 

2,594,394

 

 

2,007,942

 

Held-to-Maturity (Fair Value of $3,062,882; $2,972,273; and $3,413,994)

 

3,042,294

 

 

2,946,910

 

 

3,482,092

 

Loans Held for Sale

 

39,062

 

 

36,720

 

 

10,987

 

Loans and Leases

 

10,990,892

 

 

10,881,298

 

 

10,448,774

 

Allowance for Loan and Lease Losses

 

(110,027

)

 

(108,936

)

 

(106,693

)

Net Loans and Leases

 

10,880,865

 

 

10,772,362

 

 

10,342,081

 

Total Earning Assets

 

16,840,777

 

 

16,461,778

 

 

16,044,990

 

Cash and Due from Banks

 

299,105

 

 

259,492

 

 

324,081

 

Premises and Equipment, Net

 

188,388

 

 

179,453

 

 

151,837

 

Operating Lease Right-of-Use Assets

 

100,838

 

 

101,005

 

 

-

 

Accrued Interest Receivable

 

46,476

 

 

47,897

 

 

51,230

 

Foreclosed Real Estate

 

2,737

 

 

2,939

 

 

1,356

 

Mortgage Servicing Rights

 

25,022

 

 

24,408

 

 

24,310

 

Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

Bank-Owned Life Insurance

 

287,962

 

 

286,936

 

 

283,771

 

Other Assets

 

272,674

 

 

276,715

 

 

230,882

 

Total Assets

$

18,095,496

 

$

17,672,140

 

$

17,143,974

 

 
Liabilities
Deposits
Noninterest-Bearing Demand

$

4,489,525

 

$

4,392,706

 

$

4,739,596

 

Interest-Bearing Demand

 

3,127,205

 

 

3,000,865

 

 

3,002,925

 

Savings

 

6,365,321

 

 

6,141,098

 

 

5,539,199

 

Time

 

1,802,431

 

 

1,806,083

 

 

1,745,522

 

Total Deposits

 

15,784,482

 

 

15,340,752

 

 

15,027,242

 

Short-Term Borrowings

 

-

 

 

-

 

 

199

 

Securities Sold Under Agreements to Repurchase

 

604,306

 

 

604,299

 

 

504,296

 

Other Debt

 

85,565

 

 

110,585

 

 

135,643

 

Operating Lease Liabilities

 

108,210

 

 

108,264

 

 

-

 

Retirement Benefits Payable

 

44,504

 

 

39,682

 

 

40,494

 

Accrued Interest Payable

 

8,040

 

 

8,435

 

 

8,253

 

Taxes Payable and Deferred Taxes

 

16,085

 

 

21,089

 

 

19,736

 

Other Liabilities

 

157,472

 

 

147,544

 

 

139,911

 

Total Liabilities

 

16,808,664

 

 

16,380,650

 

 

15,875,774

 

Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2019 - 58,166,910 / 40,039,695;
September 30, 2019 - 58,176,305 / 40,359,259;
and December 31, 2018 - 58,063,689 / 41,499,898)

 

579

 

 

579

 

 

577

 

Capital Surplus

 

582,566

 

 

580,200

 

 

571,704

 

Accumulated Other Comprehensive Loss

 

(31,112

)

 

(21,774

)

 

(51,043

)

Retained Earnings

 

1,761,415

 

 

1,730,437

 

 

1,641,314

 

Treasury Stock, at Cost (Shares: December 31, 2019 - 18,127,215;
September 30, 2019 - 17,817,046; and December 31, 2018 - 16,563,791)

 

(1,026,616

)

 

(997,952

)

 

(894,352

)

Total Shareholders' Equity

 

1,286,832

 

 

1,291,490

 

 

1,268,200

 

Total Liabilities and Shareholders' Equity

$

18,095,496

 

$

17,672,140

 

$

17,143,974

 

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity Table 6
Accum.
Other
Compre-
hensive
Common Shares Common Capital Income Retained Treasury
(dollars in thousands) Outstanding Stock Surplus (Loss) Earnings Stock Total
Balance as of December 31, 2017

42,401,443

 

$

576

$

561,161

$

(34,715

)

$

1,512,218

 

$

(807,372

)

$

1,231,868

 

Net Income

-

 

 

-

 

-

 

-

 

 

219,602

 

 

-

 

 

219,602

 

Other Comprehensive Loss

-

 

 

-

 

-

 

(8,851

)

 

-

 

 

-

 

 

(8,851

)

Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from AOCI

-

 

 

-

 

-

 

(7,477

)

 

7,477

 

 

-

 

 

-

 

Share-Based Compensation

-

 

 

-

 

8,146

 

-

 

 

-

 

 

-

 

 

8,146

 

Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits

219,210

 

 

1

 

2,397

 

-

 

 

513

 

 

5,008

 

 

7,919

 

Common Stock Repurchased

(1,120,755

)

 

-

 

-

 

-

 

 

-

 

 

(91,988

)

 

(91,988

)

Cash Dividends Declared ($2.34 per share)

-

 

 

-

 

-

 

-

 

 

(98,496

)

 

-

 

 

(98,496

)

Balance as of December 31, 2018

41,499,898

 

$

577

$

571,704

$

(51,043

)

$

1,641,314

 

$

(894,352

)

$

1,268,200

 

 
Net Income

-

 

 

-

 

-

 

-

 

 

225,913

 

 

-

 

 

225,913

 

Other Comprehensive Income

-

 

 

-

 

-

 

19,931

 

 

-

 

 

-

 

 

19,931

 

Share-Based Compensation

-

 

 

-

 

8,337

 

-

 

 

-

 

 

-

 

 

8,337

 

Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits

212,924

 

 

2

 

2,525

 

-

 

 

(334

)

 

5,385

 

 

7,578

 

Common Stock Repurchased

(1,673,127

)

 

-

 

-

 

-

 

 

-

 

 

(137,649

)

 

(137,649

)

Cash Dividends Declared ($2.59 per share)

-

 

 

-

 

-

 

-

 

 

(105,478

)

 

-

 

 

(105,478

)

Balance as of December 31, 2019

40,039,695

 

$

579

$

582,566

$

(31,112

)

$

1,761,415

 

$

(1,026,616

)

$

1,286,832

 

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
December 31, 2019 September 30, 2019 December 31, 2018
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

$

3.4

$

-

0.90

%

$

3.1

$

-

1.19

%

$

3.3

$

-

1.21

%

Funds Sold

 

177.7

 

0.7

1.59

 

121.1

 

0.7

2.12

 

128.2

 

0.7

2.22

Investment Securities
Available-for-Sale
Taxable

 

2,578.3

 

15.9

2.46

 

2,647.9

 

17.1

2.59

 

1,480.5

 

10.0

2.70

Non-Taxable

 

33.4

 

0.4

4.35

 

42.6

 

0.5

4.45

 

556.4

 

3.8

2.77

Held-to-Maturity
Taxable

 

2,994.7

 

18.4

2.46

 

2,873.7

 

18.5

2.57

 

3,360.5

 

20.0

2.38

Non-Taxable

 

61.7

 

0.4

2.70

 

65.2

 

0.4

2.72

 

235.1

 

1.9

3.16

Total Investment Securities

 

5,668.1

 

35.1

2.47

 

5,629.4

 

36.5

2.59

 

5,632.5

 

35.7

2.53

Loans Held for Sale

 

31.0

 

0.3

3.67

 

24.3

 

0.2

3.94

 

12.1

 

0.2

4.63

Loans and Leases 1
Commercial and Industrial

 

1,356.1

 

13.3

3.90

 

1,383.8

 

14.4

4.14

 

1,351.1

 

14.3

4.21

Commercial Mortgage

 

2,479.7

 

25.5

4.08

 

2,423.7

 

26.2

4.28

 

2,256.0

 

24.2

4.25

Construction

 

179.1

 

2.1

4.73

 

126.0

 

1.6

5.10

 

179.8

 

2.2

4.79

Commercial Lease Financing

 

135.4

 

0.8

2.38

 

161.8

 

1.0

2.57

 

173.2

 

1.0

2.42

Residential Mortgage

 

3,850.4

 

36.7

3.81

 

3,809.6

 

36.5

3.83

 

3,615.8

 

35.1

3.88

Home Equity

 

1,683.4

 

15.7

3.70

 

1,689.2

 

16.1

3.79

 

1,652.4

 

15.7

3.78

Automobile

 

715.2

 

6.5

3.59

 

707.0

 

6.4

3.59

 

641.8

 

6.0

3.73

Other 2

 

479.4

 

8.5

7.02

 

469.6

 

8.5

7.16

 

450.0

 

8.8

7.72

Total Loans and Leases

 

10,878.7

 

109.1

3.99

 

10,770.7

 

110.7

4.09

 

10,320.1

 

107.3

4.14

Other

 

34.9

 

0.2

2.74

 

35.0

 

0.3

2.66

 

36.8

 

0.4

3.82

Total Earning Assets 3

 

16,793.8

 

145.4

3.45

 

16,583.6

 

148.4

3.56

 

16,133.0

 

144.3

3.56

Cash and Due from Banks

 

222.2

 

231.5

 

234.3

Other Assets

 

805.0

 

790.3

 

621.3

Total Assets

$

17,821.0

$

17,605.4

$

16,988.6

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

$

2,990.3

 

1.0

0.14

$

2,950.2

 

1.1

0.15

$

2,888.3

 

1.5

0.20

Savings

 

6,245.0

 

8.0

0.51

 

6,122.0

 

8.8

0.57

 

5,494.5

 

4.5

0.32

Time

 

1,842.3

 

7.4

1.59

 

1,851.0

 

8.2

1.75

 

1,800.7

 

7.2

1.59

Total Interest-Bearing Deposits

 

11,077.6

 

16.4

0.59

 

10,923.2

 

18.1

0.66

 

10,183.5

 

13.2

0.51

Short-Term Borrowings

 

5.8

 

-

1.66

 

27.1

 

0.1

2.13

 

89.6

 

0.5

2.31

Securities Sold Under Agreements to Repurchase

 

604.3

 

4.1

2.64

 

513.8

 

4.3

3.24

 

504.3

 

4.7

3.62

Other Debt

 

106.2

 

0.7

2.67

 

110.6

 

0.7

2.62

 

145.2

 

0.7

1.85

Total Interest-Bearing Liabilities

 

11,793.9

 

21.2

0.71

 

11,574.7

 

23.2

0.79

 

10,922.6

 

19.1

0.69

Net Interest Income

$

124.2

$

125.2

$

125.2

Interest Rate Spread

2.74

%

2.77

%

2.87

%

Net Interest Margin

2.95

%

3.01

%

3.10

%

Noninterest-Bearing Demand Deposits

 

4,363.5

 

4,407.5

 

4,596.0

Other Liabilities

 

370.7

 

333.8

 

215.3

Shareholders' Equity

 

1,292.9

 

1,289.4

 

1,254.7

Total Liabilities and Shareholders' Equity

$

17,821.0

$

17,605.4

$

16,988.6

 
 
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 $352,000, $296,000, and $1,263,000 for the three months ended December 31, 2019, September 30, 2019, and December 31, 2018, respectively.
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis Table 7b
Year Ended Year Ended
December 31, 2019 December 31, 2018
Average Income/ Yield/ Average Income/ Yield/
(dollars in millions) Balance Expense Rate Balance Expense Rate
Earning Assets
Interest-Bearing Deposits in Other Banks

$

3.1

$

-

1.33

%

$

3.2

$

-

1.05

%

Funds Sold

 

165.7

 

3.6

2.14

 

200.0

 

3.7

1.86

Investment Securities
Available-for-Sale
Taxable

 

2,210.5

 

58.9

2.66

 

1,537.7

 

37.6

2.44

Non-Taxable

 

109.6

 

4.1

3.78

 

577.9

 

15.9

2.76

Held-to-Maturity
Taxable

 

3,148.2

 

78.3

2.49

 

3,468.4

 

78.4

2.26

Non-Taxable

 

137.8

 

4.2

3.04

 

236.5

 

7.5

3.17

Total Investment Securities

 

5,606.1

 

145.5

2.60

 

5,820.5

 

139.4

2.39

Loans Held for Sale

 

21.7

 

0.9

3.92

 

14.0

 

0.6

4.31

Loans and Leases 1
Commercial and Industrial

 

1,370.9

 

57.9

4.23

 

1,304.8

 

51.9

3.98

Commercial Mortgage

 

2,400.6

 

102.4

4.27

 

2,164.6

 

89.7

4.14

Construction

 

145.2

 

7.4

5.07

 

184.9

 

8.6

4.68

Commercial Lease Financing

 

154.4

 

3.7

2.43

 

176.8

 

4.1

2.29

Residential Mortgage

 

3,768.2

 

144.7

3.84

 

3,546.5

 

136.0

3.84

Home Equity

 

1,689.4

 

64.1

3.80

 

1,620.8

 

61.1

3.77

Automobile

 

694.9

 

25.1

3.62

 

591.2

 

23.2

3.92

Other 2

 

464.8

 

33.3

7.16

 

454.1

 

35.6

7.85

Total Loans and Leases

 

10,688.4

 

438.6

4.10

 

10,043.7

 

410.2

4.08

Other

 

35.1

 

1.0

2.85

 

39.0

 

1.4

3.48

Total Earning Assets 3

 

16,520.1

 

589.6

3.57

 

16,120.4

 

555.3

3.44

Cash and Due from Banks

 

234.0

 

241.6

Other Assets

 

783.5

 

609.0

Total Assets

$

17,537.6

$

16,971.0

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

$

2,945.9

 

5.0

0.17

$

2,958.8

 

4.7

0.16

Savings

 

6,034.0

 

32.4

0.54

 

5,434.3

 

13.6

0.25

Time

 

1,816.3

 

31.0

1.71

 

1,725.9

 

22.8

1.32

Total Interest-Bearing Deposits

 

10,796.2

 

68.4

0.63

 

10,119.0

 

41.1

0.41

Short-Term Borrowings

 

36.5

 

0.9

2.41

 

35.5

 

0.8

2.13

Securities Sold Under Agreements to Repurchase

 

531.9

 

17.5

3.29

 

504.7

 

18.5

3.67

Other Debt

 

111.8

 

2.9

2.60

 

211.3

 

3.4

1.61

Total Interest-Bearing Liabilities

 

11,476.4

 

89.7

0.78

 

10,870.5

 

63.8

0.59

Net Interest Income

$

499.9

$

491.5

Interest Rate Spread

2.79

%

2.85

%

Net Interest Margin

3.03

%

3.05

%

Noninterest-Bearing Demand Deposits

 

4,431.9

 

4,638.7

Other Liabilities

 

349.2

 

216.1

Shareholders' Equity

 

1,280.1

 

1,245.7

Total Liabilities and Shareholders' Equity

$

17,537.6

$

16,971.0

 
 
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 $2,230,000 and $5,170,000 for the years ended December 31, 2019 and December 31, 2018, respectively.
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8a
Three Months Ended December 31, 2019
Compared to September 30, 2019
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Funds Sold

$

0.2

 

$

(0.2

)

$

-

 

Investment Securities
Available-for-Sale
Taxable

 

(0.4

)

 

(0.8

)

 

(1.2

)

Non-Taxable

 

(0.1

)

 

-

 

 

(0.1

)

Held-to-Maturity
Taxable

 

0.7

 

 

(0.8

)

 

(0.1

)

Total Investment Securities

 

0.2

 

 

(1.6

)

 

(1.4

)

Loans Held for Sale

 

0.1

 

 

-

 

 

0.1

 

Loans and Leases
Commercial and Industrial

 

(0.3

)

 

(0.8

)

 

(1.1

)

Commercial Mortgage

 

0.6

 

 

(1.3

)

 

(0.7

)

Construction

 

0.6

 

 

(0.1

)

 

0.5

 

Commercial Lease Financing

 

(0.1

)

 

(0.1

)

 

(0.2

)

Residential Mortgage

 

0.3

 

 

(0.1

)

 

0.2

 

Home Equity

 

-

 

 

(0.4

)

 

(0.4

)

Automobile

 

0.1

 

 

-

 

 

0.1

 

Other 2

 

0.2

 

 

(0.2

)

 

-

 

Total Loans and Leases

 

1.4

 

 

(3.0

)

 

(1.6

)

Other

 

(0.1

)

 

-

 

 

(0.1

)

Total Change in Interest Income

 

1.8

 

 

(4.8

)

 

(3.0

)

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

-

 

 

(0.1

)

 

(0.1

)

Savings

 

0.1

 

 

(0.9

)

 

(0.8

)

Time

 

-

 

 

(0.8

)

 

(0.8

)

Total Interest-Bearing Deposits

 

0.1

 

 

(1.8

)

 

(1.7

)

Short-Term Borrowings

 

(0.1

)

 

-

 

 

(0.1

)

Securities Sold Under Agreements to Repurchase

 

0.7

 

 

(0.9

)

 

(0.2

)

Total Change in Interest Expense

 

0.7

 

 

(2.7

)

 

(2.0

)

 
Change in Net Interest Income

$

1.1

 

$

(2.1

)

$

(1.0

)

 
 
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 December 31, 2019
Compared to December 31, 2018
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Funds Sold

$

0.2

 

$

(0.2

)

$

-

 

Investment Securities
Available-for-Sale
Taxable

 

6.8

 

 

(0.9

)

 

5.9

 

Non-Taxable

 

(4.9

)

 

1.5

 

 

(3.4

)

Held-to-Maturity
Taxable

 

(2.2

)

 

0.6

 

 

(1.6

)

Non-Taxable

 

(1.2

)

 

(0.3

)

 

(1.5

)

Total Investment Securities

 

(1.5

)

 

0.9

 

 

(0.6

)

Loans Held for Sale

 

0.2

 

 

(0.1

)

 

0.1

 

Loans and Leases
Commercial and Industrial

 

0.1

 

 

(1.1

)

 

(1.0

)

Commercial Mortgage

 

2.3

 

 

(1.0

)

 

1.3

 

Construction

 

-

 

 

(0.1

)

 

(0.1

)

Commercial Lease Financing

 

(0.2

)

 

-

 

 

(0.2

)

Residential Mortgage

 

2.2

 

 

(0.6

)

 

1.6

 

Home Equity

 

0.3

 

 

(0.3

)

 

-

 

Automobile

 

0.7

 

 

(0.2

)

 

0.5

 

Other 2

 

0.5

 

 

(0.8

)

 

(0.3

)

Total Loans and Leases

 

5.9

 

 

(4.1

)

 

1.8

 

Other

 

(0.1

)

 

(0.1

)

 

(0.2

)

Total Change in Interest Income

 

4.7

 

 

(3.6

)

 

1.1

 

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

-

 

 

(0.5

)

 

(0.5

)

Savings

 

0.7

 

 

2.8

 

 

3.5

 

Time

 

0.2

 

 

-

 

 

0.2

 

Total Interest-Bearing Deposits

 

0.9

 

 

2.3

 

 

3.2

 

Short-Term Borrowings

 

(0.4

)

 

(0.1

)

 

(0.5

)

Securities Sold Under Agreements to Repurchase

 

0.8

 

 

(1.4

)

 

(0.6

)

Other Debt

 

(0.3

)

 

0.3

 

 

-

 

Total Change in Interest Expense

 

1.0

 

 

1.1

 

 

2.1

 

 
Change in Net Interest Income

$

3.7

 

$

(4.7

)

$

(1.0

)

 
 
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
Year Ended December 31, 2019
Compared to December 31, 2018
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Funds Sold

$

(0.7

)

$

0.6

 

$

(0.1

)

Investment Securities
Available-for-Sale
Taxable

 

17.7

 

 

3.6

 

 

21.3

 

Non-Taxable

 

(16.2

)

 

4.4

 

 

(11.8

)

Held-to-Maturity
Taxable

 

(7.6

)

 

7.5

 

 

(0.1

)

Non-Taxable

 

(3.0

)

 

(0.3

)

 

(3.3

)

Total Investment Securities

 

(9.1

)

 

15.2

 

 

6.1

 

Loans Held for Sale

 

0.3

 

 

-

 

 

0.3

 

Loans and Leases
Commercial and Industrial

 

2.7

 

 

3.3

 

 

6.0

 

Commercial Mortgage

 

10.0

 

 

2.7

 

 

12.7

 

Construction

 

(1.9

)

 

0.7

 

 

(1.2

)

Commercial Lease Financing

 

(0.6

)

 

0.2

 

 

(0.4

)

Residential Mortgage

 

8.5

 

 

0.2

 

 

8.7

 

Home Equity

 

2.6

 

 

0.4

 

 

3.0

 

Automobile

 

3.8

 

 

(1.9

)

 

1.9

 

Other 2

 

0.9

 

 

(3.2

)

 

(2.3

)

Total Loans and Leases

 

26.0

 

 

2.4

 

 

28.4

 

Other

 

(0.1

)

 

(0.3

)

 

(0.4

)

Total Change in Interest Income

 

16.4

 

 

17.9

 

 

34.3

 

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

-

 

 

0.3

 

 

0.3

 

Savings

 

1.6

 

 

17.2

 

 

18.8

 

Time

 

1.3

 

 

6.9

 

 

8.2

 

Total Interest-Bearing Deposits

 

2.9

 

 

24.4

 

 

27.3

 

Short-Term Borrowings

 

-

 

 

0.1

 

 

0.1

 

Securities Sold Under Agreements to Repurchase

 

1.0

 

 

(2.0

)

 

(1.0

)

Other Debt

 

(2.0

)

 

1.5

 

 

(0.5

)

Total Change in Interest Expense

 

1.9

 

 

24.0

 

 

25.9

 

 
Change in Net Interest Income

$

14.5

 

$

(6.1

)

$

8.4

 

 
 
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 Year Ended
December 31, September 30, December 31, December 31,
(dollars in thousands)

2019

2019

2018

2019

2018

Salaries

$

33,465

$

33,458

$

33,603

$

132,237

$

132,884

Incentive Compensation

 

4,864

 

5,681

 

5,715

 

21,913

 

20,687

Share-Based Compensation

 

1,475

 

2,025

 

1,417

 

8,573

 

8,074

Commission Expense

 

2,080

 

1,760

 

1,158

 

6,474

 

4,418

Retirement and Other Benefits

 

4,279

 

4,185

 

4,369

 

18,151

 

17,313

Payroll Taxes

 

2,386

 

2,519

 

2,277

 

11,795

 

11,389

Medical, Dental, and Life Insurance

 

2,903

 

3,908

 

5,237

 

15,202

 

16,134

Separation Expense

 

212

 

809

 

1,080

 

1,761

 

2,309

Total Salaries and Benefits

$

51,664

$

54,345

$

54,856

$

216,106

$

213,208

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances Table 10
December 31, September 30, June 30, March 31, December 31,
(dollars in thousands)

2019

2019

2019

2019

2018

Commercial
Commercial and Industrial

$

1,379,152

$

1,361,011

$

1,408,729

$

1,331,345

$

1,331,149

Commercial Mortgage

 

2,518,051

 

2,477,296

 

2,411,289

 

2,381,213

 

2,302,356

Construction

 

194,170

 

154,754

 

119,228

 

132,775

 

170,061

Lease Financing

 

122,454

 

163,672

 

163,070

 

154,919

 

176,226

Total Commercial

 

4,213,827

 

4,156,733

 

4,102,316

 

4,000,252

 

3,979,792

Consumer
Residential Mortgage

 

3,891,100

 

3,846,511

 

3,785,006

 

3,702,553

 

3,673,796

Home Equity

 

1,676,073

 

1,681,951

 

1,694,577

 

1,698,666

 

1,681,442

Automobile

 

720,286

 

713,424

 

703,523

 

676,730

 

658,133

Other 1

 

489,606

 

482,679

 

473,707

 

470,408

 

455,611

Total Consumer

 

6,777,065

 

6,724,565

 

6,656,813

 

6,548,357

 

6,468,982

Total Loans and Leases

$

10,990,892

$

10,881,298

$

10,759,129

$

10,548,609

$

10,448,774

 
 
Deposits
December 31, September 30, June 30, March 31, December 31,
(dollars in thousands)

2019

2019

2019

2019

2018

Consumer

$

8,118,494

$

7,893,454

$

7,880,284

$

7,944,793

$

7,726,731

Commercial

 

6,324,214

 

6,153,492

 

6,178,984

 

6,162,042

 

6,098,186

Public and Other

 

1,341,774

 

1,293,806

 

1,429,553

 

1,160,475

 

1,202,325

Total Deposits

$

15,784,482

$

15,340,752

$

15,488,821

$

15,267,310

$

15,027,242

 
 
1 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
December 31, September 30, June 30, March 31, December 31,
(dollars in thousands)

2019

2019

2019

2019

2018

Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial

$

830

 

$

573

 

$

552

 

$

393

 

$

542

 

Commercial Mortgage

 

9,244

 

 

11,088

 

 

11,310

 

 

5,911

 

 

2,040

 

Total Commercial

 

10,074

 

 

11,661

 

 

11,862

 

 

6,304

 

 

2,582

 

Consumer
Residential Mortgage

 

4,125

 

 

4,258

 

 

4,697

 

 

5,599

 

 

5,321

 

Home Equity

 

3,181

 

 

2,787

 

 

2,486

 

 

2,797

 

 

3,671

 

Total Consumer

 

7,306

 

 

7,045

 

 

7,183

 

 

8,396

 

 

8,992

 

Total Non-Accrual Loans and Leases

 

17,380

 

 

18,706

 

 

19,045

 

 

14,700

 

 

11,574

 

Foreclosed Real Estate

 

2,737

 

 

2,939

 

 

2,737

 

 

3,225

 

 

1,356

 

Total Non-Performing Assets

$

20,117

 

$

21,645

 

$

21,782

 

$

17,925

 

$

12,930

 

 
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial

$

-

 

$

81

 

$

-

 

$

66

 

$

10

 

Total Commercial

 

-

 

 

81

 

 

-

 

 

66

 

 

10

 

Consumer
Residential Mortgage

 

1,839

 

 

2,032

 

 

1,859

 

 

903

 

 

2,446

 

Home Equity

 

4,125

 

 

2,320

 

 

2,981

 

 

3,381

 

 

2,684

 

Automobile

 

949

 

 

582

 

 

607

 

 

734

 

 

513

 

Other 1

 

1,493

 

 

1,076

 

 

963

 

 

1,033

 

 

914

 

Total Consumer

 

8,406

 

 

6,010

 

 

6,410

 

 

6,051

 

 

6,557

 

Total Accruing Loans and Leases Past Due 90 Days or More

$

8,406

 

$

6,091

 

$

6,410

 

$

6,117

 

$

6,567

 

Restructured Loans on Accrual Status and Not Past Due 90 Days or More

$

63,103

 

$

46,178

 

$

48,563

 

$

48,571

 

$

48,731

 

Total Loans and Leases

$

10,990,892

 

$

10,881,298

 

$

10,759,129

 

$

10,548,609

 

$

10,448,774

 

 
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases

 

0.16%

 

0.17%

 

0.18%

 

0.14%

 

0.11%

 
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate

 

0.18%

 

0.20%

 

0.20%

 

0.17%

 

0.12%

 
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate

 

0.24%

 

0.28%

 

0.29%

 

0.16%

 

0.06%

 
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate

 

0.15%

 

0.15%

 

0.15%

 

0.18%

 

0.16%

 
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

 

0.26%

 

0.25%

 

0.26%

 

0.23%

 

0.19%

 
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter

 

21,645

 

$

21,782

 

$

17,925

 

$

12,930

 

$

13,798

 

Additions

 

883

 

 

1,035

 

 

6,186

 

 

8,217

 

 

4,509

 

Reductions
Payments

 

(495

)

 

(984

)

 

(441

)

 

(989

)

 

(3,759

)

Return to Accrual Status

 

(1,673

)

 

-

 

 

(1,344

)

 

(316

)

 

(605

)

Sales of Foreclosed Real Estate

 

(201

)

 

-

 

 

(374

)

 

-

 

 

(653

)

Charge-offs/Write-downs

 

(42

)

 

(188

)

 

(170

)

 

(1,917

)

 

(360

)

Total Reductions

 

(2,411

)

 

(1,172

)

 

(2,329

)

 

(3,222

)

 

(5,377

)

Balance at End of Quarter

$

20,117

 

$

21,645

 

$

21,782

 

$

17,925

 

$

12,930

 

 
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 Year Ended
December 31, September 30, December 31, December 31,
(dollars in thousands)

2019

 

2019

 

2018

 

2019

 

2018

Balance at Beginning of Period

$

115,758

 

$

114,494

 

$

115,512

$

113,515

 

 

114,168

 

Loans and Leases Charged-Off
Commercial
Commercial and Industrial

 

(307

)

 

(239

)

 

(365

)

 

(1,122

)

 

(1,505

)

Commercial Mortgage

 

-

 

 

-

 

 

-

 

 

(1,616

)

 

-

 

Consumer
Residential Mortgage

 

(50

)

 

(7

)

 

(1

)

 

(112

)

 

(101

)

Home Equity

 

(245

)

 

(215

)

 

(406

)

 

(900

)

 

(665

)

Automobile

 

(1,990

)

 

(1,696

)

 

(2,335

)

 

(7,130

)

 

(8,218

)

Other 1

 

(3,651

)

 

(3,598

)

 

(3,781

)

 

(13,075

)

 

(14,075

)

Total Loans and Leases Charged-Off

 

(6,243

)

 

(5,755

)

 

(6,888

)

 

(23,955

)

 

(24,564

)

Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial

 

293

 

 

318

 

 

803

 

 

1,513

 

 

2,039

 

Consumer
Residential Mortgage

 

699

 

 

649

 

 

112

 

 

1,927

 

 

807

 

Home Equity

 

577

 

 

428

 

 

367

 

 

2,339

 

 

2,001

 

Automobile

 

512

 

 

660

 

 

949

 

 

2,961

 

 

2,902

 

Other 1

 

503

 

 

714

 

 

660

 

 

2,549

 

 

2,737

 

Total Recoveries on Loans and Leases Previously Charged-Off

 

2,584

 

 

2,769

 

 

2,891

 

 

11,289

 

 

10,486

 

Net Loans and Leases Charged-Off

 

(3,659

)

 

(2,986

)

 

(3,997

)

 

(12,666

)

 

(14,078

)

Provision for Credit Losses

 

4,750

 

 

4,250

 

 

2,000

 

 

16,000

 

 

13,425

 

Provision for Unfunded Commitments

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Balance at End of Period 2

$

116,849

 

$

115,758

 

$

113,515

 

$

116,849

 

$

113,515

 

 
Components
Allowance for Loan and Lease Losses

$

110,027

 

$

108,936

 

$

106,693

 

$

110,027

 

 

106,693

 

Reserve for Unfunded Commitments

 

6,822

 

 

6,822

 

 

6,822

 

 

6,822

 

 

6,822

 

Total Reserve for Credit Losses

$

116,849

 

$

115,758

 

$

113,515

 

$

116,849

 

$

113,515

 

 
Average Loans and Leases Outstanding

$

10,878,672

 

$

10,770,720

 

$

10,320,051

 

$

10,688,424

 

$

10,043,661

 

 
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)

 

0.13%

 

0.11%

 

0.15%

 

0.12%

 

0.14%

Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding

 

1.00%

 

1.00%

 

1.02%

 

1.00%

 

1.02%

 
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.
Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information Table 13a
Investment
Services and
Retail Commercial Private Treasury Consolidated
(dollars in thousands) Banking Banking Banking and Other Total
Three Months Ended December 31, 2019
Net Interest Income

$

66,410

 

$

45,475

 

$

9,689

 

$

2,311

 

$

123,885

 

Provision for Credit Losses

 

3,818

 

 

(165

)

 

1

 

 

1,096

 

 

4,750

 

Net Interest Income After Provision for Credit Losses

 

62,592

 

 

45,640

 

 

9,688

 

 

1,215

 

 

119,135

 

Noninterest Income

 

21,377

 

 

10,624

 

 

13,929

 

 

1,772

 

 

47,702

 

Noninterest Expense

 

(52,720

)

 

(21,071

)

 

(15,774

)

 

(3,531

)

 

(93,096

)

Income Before Provision for Income Taxes

 

31,249

 

 

35,193

 

 

7,843

 

 

(544

)

 

73,741

 

Provision for Income Taxes

 

(7,842

)

 

(6,345

)

 

(2,067

)

 

656

 

 

(15,598

)

Net Income

$

23,407

 

$

28,848

 

$

5,776

 

$

112

 

$

58,143

 

Total Assets as of December 31, 2019

$

6,732,811

 

$

4,254,261

 

$

321,700

 

$

6,786,724

 

$

18,095,496

 

 
 
Three Months Ended December 31, 2018
Net Interest Income

$

67,452

 

$

46,429

 

$

10,235

 

$

(143

)

$

123,973

 

Provision for Credit Losses

 

4,481

 

 

(484

)

 

(1

)

 

(1,996

)

 

2,000

 

Net Interest Income After Provision for Credit Losses

 

62,971

 

 

46,913

 

 

10,236

 

 

1,853

 

 

121,973

 

Noninterest Income

 

20,339

 

 

6,338

 

 

13,397

 

 

2,034

 

 

42,108

 

Noninterest Expense

 

(53,417

)

 

(20,912

)

 

(17,583

)

 

(3,999

)

 

(95,911

)

Income Before Provision for Income Taxes

 

29,893

 

 

32,339

 

 

6,050

 

 

(112

)

 

68,170

 

Provision for Income Taxes

 

(7,465

)

 

(7,714

)

 

(1,595

)

 

2,515

 

 

(14,259

)

Net Income

$

22,428

 

$

24,625

 

$

4,455

 

$

2,403

 

$

53,911

 

Total Assets as of December 31, 2018

$

6,365,263

 

$

3,958,523

 

$

349,832

 

$

6,470,356

 

$

17,143,974

 

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information Table 13b
Investment
Services and
Retail Commercial Private Treasury Consolidated
(dollars in thousands) Banking Banking Banking and Other Total
Year Ended December 31, 2019
Net Interest Income

$

266,429

 

$

185,259

 

$

39,374

 

$

6,653

 

$

497,715

 

Provision for Credit Losses

 

11,670

 

 

976

 

 

15

 

 

3,339

 

 

16,000

 

Net Interest Income After Provision for Credit Losses

 

254,759

 

 

184,283

 

 

39,359

 

 

3,314

 

 

481,715

 

Noninterest Income

 

86,682

 

 

33,362

 

 

55,696

 

 

7,598

 

 

183,338

 

Noninterest Expense

 

(216,688

)

 

(84,616

)

 

(64,974

)

 

(12,949

)

 

(379,227

)

Income Before Provision for Income Taxes

 

124,753

 

 

133,029

 

 

30,081

 

 

(2,037

)

 

285,826

 

Provision for Income Taxes

 

(30,725

)

 

(28,852

)

 

(7,929

)

 

7,593

 

 

(59,913

)

Net Income

$

94,028

 

$

104,177

 

$

22,152

 

$

5,556

 

$

225,913

 

Total Assets as of December 31, 2019

$

6,732,811

 

$

4,254,261

 

$

321,700

 

$

6,786,724

 

$

18,095,496

 

 
 
Year Ended December 31, 2018
Net Interest Income

$

264,459

 

$

179,577

 

$

41,222

 

$

1,094

 

$

486,352

 

Provision for Credit Losses

 

14,898

 

 

(760

)

 

(61

)

 

(652

)

 

13,425

 

Net Interest Income After Provision for Credit Losses

 

249,561

 

 

180,337

 

 

41,283

 

 

1,746

 

 

472,927

 

Noninterest Income

 

79,004

 

 

23,733

 

 

55,338

 

 

10,848

 

 

168,923

 

Noninterest Expense

 

(211,761

)

 

(81,344

)

 

(65,847

)

 

(12,672

)

 

(371,624

)

Income Before Provision for Income Taxes

 

116,804

 

 

122,726

 

 

30,774

 

 

(78

)

 

270,226

 

Provision for Income Taxes

 

(29,172

)

 

(28,496

)

 

(8,113

)

 

15,157

 

 

(50,624

)

Net Income

$

87,632

 

$

94,230

 

$

22,661

 

$

15,079

 

$

219,602

 

Total Assets as of December 31, 2018

$

6,365,263

 

$

3,958,523

 

$

349,832

 

$

6,470,356

 

$

17,143,974

 

Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data Table 14
Three Months Ended
December 31, September 30, June 30, March 31, December 31,
(dollars in thousands, except per share amounts)

2019

2019

2019

2019

2018

Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases

$

109,223

 

$

110,877

 

$

110,401

 

$

108,511

 

$

107,404

 

Income on Investment Securities
Available-for-Sale

 

16,158

 

 

17,512

 

 

15,072

 

 

13,432

 

 

13,043

 

Held-to-Maturity

 

18,750

 

 

18,796

 

 

22,149

 

 

21,921

 

 

21,482

 

Deposits

 

8

 

 

9

 

 

9

 

 

15

 

 

10

 

Funds Sold

 

723

 

 

656

 

 

730

 

 

1,444

 

 

727

 

Other

 

239

 

 

233

 

 

210

 

 

319

 

 

352

 

Total Interest Income

 

145,101

 

 

148,083

 

 

148,571

 

 

145,642

 

 

143,018

 

Interest Expense
Deposits

 

16,407

 

 

18,055

 

 

18,628

 

 

15,284

 

 

13,172

 

Securities Sold Under Agreements to Repurchase

 

4,071

 

 

4,257

 

 

4,623

 

 

4,571

 

 

4,671

 

Funds Purchased

 

25

 

 

146

 

 

512

 

 

157

 

 

440

 

Short-Term Borrowings

 

-

 

 

1

 

 

1

 

 

36

 

 

88

 

Other Debt

 

713

 

 

728

 

 

710

 

 

757

 

 

674

 

Total Interest Expense

 

21,216

 

 

23,187

 

 

24,474

 

 

20,805

 

 

19,045

 

Net Interest Income

 

123,885

 

 

124,896

 

 

124,097

 

 

124,837

 

 

123,973

 

Provision for Credit Losses

 

4,750

 

 

4,250

 

 

4,000

 

 

3,000

 

 

2,000

 

Net Interest Income After Provision for Credit Losses

 

119,135

 

 

120,646

 

 

120,097

 

 

121,837

 

 

121,973

 

Noninterest Income
Trust and Asset Management

 

11,157

 

 

10,930

 

 

11,385

 

 

10,761

 

 

10,558

 

Mortgage Banking

 

3,199

 

 

4,864

 

 

3,336

 

 

2,287

 

 

2,148

 

Service Charges on Deposit Accounts

 

7,835

 

 

7,592

 

 

7,283

 

 

7,364

 

 

7,562

 

Fees, Exchange, and Other Service Charges

 

14,533

 

 

14,900

 

 

14,252

 

 

14,208

 

 

14,576

 

Investment Securities Gains (Losses), Net

 

(906

)

 

(1,469

)

 

(776

)

 

(835

)

 

(841

)

Annuity and Insurance

 

1,272

 

 

1,278

 

 

1,806

 

 

2,578

 

 

1,409

 

Bank-Owned Life Insurance

 

1,879

 

 

1,647

 

 

1,779

 

 

1,710

 

 

1,941

 

Other

 

8,733

 

 

6,765

 

 

6,385

 

 

5,606

 

 

4,755

 

Total Noninterest Income

 

47,702

 

 

46,507

 

 

45,450

 

 

43,679

 

 

42,108

 

Noninterest Expense
Salaries and Benefits

 

51,664

 

 

54,345

 

 

53,511

 

 

56,586

 

 

54,856

 

Net Occupancy

 

8,824

 

 

8,803

 

 

8,579

 

 

7,594

 

 

8,918

 

Net Equipment

 

7,930

 

 

7,637

 

 

6,895

 

 

6,833

 

 

6,364

 

Data Processing

 

4,828

 

 

4,676

 

 

4,727

 

 

4,526

 

 

5,151

 

Professional Fees

 

3,257

 

 

2,184

 

 

2,177

 

 

2,453

 

 

2,467

 

FDIC Insurance

 

1,376

 

 

1,257

 

 

1,290

 

 

1,269

 

 

1,336

 

Other

 

15,217

 

 

21,447

 

 

15,546

 

 

13,796

 

 

16,819

 

Total Noninterest Expense

 

93,096

 

 

100,349

 

 

92,725

 

 

93,057

 

 

95,911

 

Income Before Provision for Income Taxes

 

73,741

 

 

66,804

 

 

72,822

 

 

72,459

 

 

68,170

 

Provision for Income Taxes

 

15,598

 

 

14,752

 

 

15,903

 

 

13,660

 

 

14,259

 

Net Income

$

58,143

 

$

52,052

 

$

56,919

 

$

58,799

 

$

53,911

 

 
Basic Earnings Per Share

$

1.46

 

$

1.30

 

$

1.40

 

$

1.44

 

$

1.30

 

Diluted Earnings Per Share

$

1.45

 

$

1.29

 

$

1.40

 

$

1.43

 

$

1.30

 

 
Balance Sheet Totals
Loans and Leases

$

10,990,892

 

$

10,881,298

 

$

10,759,129

 

$

10,548,609

 

$

10,448,774

 

Total Assets

 

18,095,496

 

 

17,672,140

 

 

17,688,845

 

 

17,446,413

 

 

17,143,974

 

Total Deposits

 

15,784,482

 

 

15,340,752

 

 

15,488,821

 

 

15,267,310

 

 

15,027,242

 

Total Shareholders' Equity

 

1,286,832

 

 

1,291,490

 

 

1,285,948

 

 

1,269,690

 

 

1,268,200

 

 
Performance Ratios
Return on Average Assets

 

1.29

 

%

 

1.17

 

%

 

1.31

 

%

 

1.38

 

%

 

1.26

 

%

Return on Average Shareholders' Equity

 

17.84

 

 

16.02

 

 

17.97

 

 

18.81

 

 

17.05

 

Efficiency Ratio 1

 

54.26

 

 

58.55

 

 

54.69

 

 

55.22

 

 

57.75

 

Net Interest Margin 2

 

2.95

 

 

3.01

 

 

3.04

 

 

3.12

 

 

3.10

 

 
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
  Eleven Months Ended   Year Ended
($ in millions; jobs in thousands)   November 30, 2019   December 31, 2018   December 31, 2017
Hawaii Economic Trends            
State General Fund Revenues 1  

$

6,749.3

 

6.0

%

 

$

6,933.1

 

 

6.9

 

%

 

$

6,485.0

 

4.3

%

General Excise and Use Tax Revenue 1  

$

3,316.0

 

5.4