HONOLULU--(BUSINESS WIRE)--Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per common share of $1.68 for the second quarter of 2021, compared with diluted earnings per common share of $1.50 in the previous quarter and $0.98 in the same quarter last year. Net income for the second quarter of 2021 was $67.5 million compared with net income of $59.9 million in the first quarter of 2021 and $38.9 million in the second quarter of 2020.
“Bank of Hawaii Corporation continued to perform well during the second quarter of 2021," said Peter Ho, Chairman, President, and CEO. “Core loans and deposits continue to grow, and asset quality remains solid. We are also pleased with the success of our inaugural preferred stock issuance in June, which enhances the strength of our balance sheet and positions us well for future growth.”
The return on average assets for the second quarter of 2021 was 1.23 percent compared with 1.15 percent during the previous quarter and 0.82 percent in the same quarter last year. The return on average common equity for the second quarter of 2021 was 19.60 percent compared with 17.65 percent during the previous quarter and 11.58 percent in the same quarter last year.
For the six-month period ended June 30, 2021, net income was $127.5 million, up from net income of $73.7 million during the same period last year. Diluted earnings per common share were $3.18 for the first half of 2021 compared with diluted earnings per common share of $1.85 for the first half of 2020.
The return on average assets for the six-month period ended June 30, 2021 was 1.19 percent compared with the return on average assets of 0.79 percent for the same six-month period in 2020. The return on average common equity was 18.63 percent for the first half of 2021 compared with the return on average common equity of 11.11 percent for the first half of 2020.
Financial Highlights
Net interest income, on a taxable-equivalent basis, for the second quarter of 2021 was $123.8 million, an increase of $3.0 million from $120.8 million in the first quarter of 2021 and down $3.2 million from $127.0 million in the second quarter of 2020. The net interest margin was 2.37 percent in the second quarter of 2021, a decrease of 6 basis points from 2.43 percent in the previous quarter and 46 basis points from 2.83 percent in the same quarter last year. The decrease in the net interest margin 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. Net interest income in the second quarter of 2020 included an interest recovery of $2.9 million.
Net interest income, on a taxable equivalent basis, for the first half of 2021 was $244.7 million, down $8.7 million compared with net interest income of $253.4 million for the first half of 2020. The net interest margin for the first six months of 2021 was 2.40 percent, compared with the net interest margin of 2.90 percent for the same six-month period last year. Analyses of changes in net interest income are included in Tables 8a, 8b, and 8c.
Results for the second quarter of 2021 included a negative provision for credit losses of $16.1 million compared with a negative provision for credit losses of $14.3 million in the previous quarter and provision for credit losses of $40.4 million in the same quarter last year. The provision for credit losses during the first half of 2021 was negative $30.4 million compared with a provision for credit losses of $74.0 million during the same period in 2020.
Noninterest income was $44.4 million in the second quarter of 2021, an increase of $1.4 million compared with noninterest income of $43.0 million in the first quarter of 2021 and a decrease of $6.9 million compared with $51.3 million in the second quarter of 2020. Noninterest income in the second quarter of 2021 included a gain of $3.7 million related to the sale of investment securities, partially offset by lower mortgage banking income. Noninterest income during the second quarter of 2020 included a gain of $14.2 million related to a sale of Visa Class B shares. Noninterest income for the first half of 2021 was $87.4 million compared with noninterest income of $97.4 million for the first half of 2020.
Noninterest expense was $96.5 million in the second quarter of 2021, a decrease of $2.4 million compared with noninterest expense of $98.9 million in the first quarter of 2021 and an increase of $7.6 million compared with $88.9 million in the second quarter of 2020. Noninterest expense during 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. Noninterest expense in the second quarter of 2021 also included the restoration of incentive compensation that was reduced in the second quarter of 2020. Noninterest expense in the first quarter of 2021 included seasonal payroll expenses of approximately $2.1 million, costs related to the rollout of contactless cards of $1.9 million, and separation expenses of $1.8 million. Noninterest expense for the first half of 2021 was $195.4 million compared with noninterest expense of $185.2 million for the first half of 2020. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.
The efficiency ratio during the second quarter of 2021 was 57.47 percent compared with 60.45 percent in the previous quarter and 49.95 percent during the same quarter last year. The efficiency ratio for the first half of 2021 was 58.94 percent compared with 52.90 percent in the same period last year.
The effective tax rate for the second quarter of 2021 was 22.84 percent compared with 24.09 percent in the previous quarter and 20.05 percent during the same quarter in 2020. The effective tax rate for the first half of 2021 was 23.43 percent compared with an effective tax rate of 18.95 percent during the same period last year. The increase in the effective tax rate for the first half of 2021 was primarily due to higher pretax book income in the first half of 2021.
The Company’s business segments are defined as Consumer Banking, Commercial Banking, and Treasury & Other. Results for the business segments are determined based on the Company’s internal financial management reporting process and organizational structure. Selected financial information is included in Tables 13a and 13b.
Asset Quality
The Company’s overall asset quality continued to remain stable during the second quarter of 2021. Total non-performing assets were $19.0 million at June 30, 2021, up from $17.9 million at March 31, 2021 and down from $22.7 million at June 30, 2020. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.16 percent at the end of the second quarter of 2021, compared with 0.15 percent at the end of the first quarter of 2021 and 0.19 percent at the end of the second quarter of 2020.
Accruing loans and leases past due 90 days or more were $9.3 million at June 30, 2021 compared with $10.4 million at March 31, 2021 and $8.9 million at June 30, 2020. Restructured loans on accrual status and not past due 90 days or more were $74.9 million at June 30, 2021 compared with $74.2 million at March 31, 2021 and $59.7 million at June 30, 2020. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.
Net loan and lease charge-offs during the second quarter of 2021 were $1.2 million or 0.04 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $4.3 million partially offset by recoveries of $3.1 million. Net loan and lease charge-offs during the first quarter of 2021 were $2.9 million or 0.10 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $6.3 million partially offset by recoveries of $3.4 million. Net loan and lease charge-offs during the second quarter of 2020 were $5.1 million or 0.18 percent annualized of total average loans and leases outstanding and were comprised of $8.3 million of charge-offs partially offset by recoveries of $3.2 million. Net loan and lease charge-offs during the first half of 2021 were $4.1 million or 0.07 percent annualized of total average loans and leases outstanding compared with net charge-offs of $8.9 million or 0.16 percent annualized of total average loans and leases outstanding for the first half of 2020.
The allowance for credit losses on loans and leases was $180.4 million at June 30, 2021, a decrease from $198.3 million at March 31, 2021 and an increase from $173.4 million at June 30, 2020. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.50 percent at June 30, 2021, down from 1.63 percent at March 31, 2021 and up from 1.47 percent at June 30, 2020. The reserve for unfunded commitments was $4.5 million at June 30, 2021, an increase from $3.0 million at the end of the prior quarter and an increase from $2.5 million at the end of the same quarter in 2020. 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 increased to a new record of $22.7 billion at June 30, 2021, an increase compared with total assets of $21.9 billion at March 31, 2021 and $19.8 billion at June 30, 2020. Average total assets were $22.1 billion during the second quarter of 2021, an increase from $21.2 billion during the first quarter of 2021 and $19.2 billion in the second quarter of 2020.
The investment securities portfolio was $8.5 billion at June 30, 2021, up from $7.5 billion at March 31, 2021 and from $6.0 billion at June 30, 2020 due to growth in deposits that continued to outpace loan growth. The portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises and includes $4.5 billion in securities available-for-sale and $3.9 billion in securities held-to-maturity at June 30, 2021. The securities portfolio at March 31, 2021 included $4.0 billion in securities available-for-sale and $3.5 billion in securities held-to-maturity. The securities portfolio at June 30, 2020 included $2.7 billion in securities available-for-sale and $3.3 billion in securities held-to-maturity.
Total loans and leases were $12.0 billion at June 30, 2021, a decrease of 0.8 percent from total loans and leases of $12.1 billion at March 31, 2021 and an increase of 2.0 percent from $11.8 billion at June 30, 2020. Average total loans and leases were $12.1 billion during the second quarter of 2021, an increase from average total loans and leases of $12.0 billion during the first quarter of 2021 and $11.7 billion during the second quarter of 2020.
The commercial loan portfolio was $5.1 billion at June 30, 2021, a decrease of $156.2 million or 3.0 percent from $5.3 billion at March 31, 2021 and up $80.4 million or 1.6 percent from $5.0 billion at June 30, 2020. Commercial loans excluding PPP loans were $4.6 billion at June 30, 2021, an increase of $55.7 million or 1.2 percent from $4.5 billion at March 31, 2021 and an increase of $95.3 million or 2.1 percent from $4.5 billion at June 30, 2020. PPP loans were $513.5 million at June 30, 2021, a decrease of $212.0 million or 29.2 percent from $725.5 million at March 31, 2021 and a decrease of $14.9 million or 2.8 percent from $528.5 million at June 30, 2020. Consumer loans were $6.9 billion at June 30, 2021, an increase of $56.9 million or 0.8 percent from $6.9 billion at March 31, 2021 and up $155.6 million or 2.3 percent from $6.8 billion at June 30, 2020. Loan and lease portfolio balances are summarized in Table 10.
Total deposits were $20.2 billion at June 30, 2021, an increase of 3.1 percent from total deposits of $19.6 billion at March 31, 2021 and up 15.8 percent from total deposits of $17.4 billion at June 30, 2020. Average total deposits were $19.7 billion during the second quarter of 2021, an increase from $18.7 billion during the first quarter of 2021 and from $16.7 billion during second quarter of 2020.
Consumer deposits were $9.8 billion at June 30, 2021, an increase of $101.6 million or 1.0 percent from $9.7 billion at March 31, 2021 and an increase of $1.0 billion or 12.3 percent from $8.8 billion at June 30, 2020. Commercial deposits were $8.7 billion at June 30, 2021, an increase of $434.8 million or 5.3 percent from $8.2 billion at March 31, 2021 and an increase of $1.4 billion or 18.9 percent from $7.3 billion at June 30, 2020. Other deposits, including public funds, were $1.6 billion at June 30, 2021, an increase of $76.7 million or 4.9 percent from $1.6 billion at March 31, 2021 and an increase of $284.3 million or 20.9 percent from $1.4 billion at June 30, 2020. Deposit balances are summarized in Table 10.
In the second quarter of 2021, the Company issued $180 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, at a rate of 4.375%. The Company received net proceeds from the offering of $175.5 million after issuance costs. There were no repurchases under the share repurchase program in the second quarter of 2021. Total remaining buyback authority under the share repurchase program was $113.1 million at July 23, 2021.
Total shareholders’ equity was $1.6 billion at June 30, 2021, compared with $1.4 billion at March 31, 2021 and $1.4 billion at June 30, 2020. The Tier 1 Capital Ratio was 13.87 percent at June 30, 2021 compared with 12.35 percent at March 31, 2021 and 12.04 percent at June 30, 2020. The Tier 1 Leverage Ratio at June 30, 2021 was 7.31 percent compared with 6.61 percent at March 31, 2021 and 6.90 percent at June 30, 2020.
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 September 15, 2021 to shareholders of record at the close of business on August 31, 2021. The Board of Directors previously declared the first quarterly dividend payment of $5.59 per share, equivalent to $0.13975 per depositary share, on its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A for the period covering June 15, 2021 through July 31, 2021. 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 August 2, 2021 to shareholders of record of the preferred stock as of July 16, 2021.
Conference Call Information
The Company will review its second 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. The webcast link is https://edge.media-server.com/mmc/p/nujqrorp. 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. A replay of the conference call will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, July 26, 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 3698556 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 quarter ended March 31, 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 | ||||||||||||||||||||
| Financial Highlights | Table 1 | |||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
||||||||||||||
| (dollars in thousands, except per share amounts) | 2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||||
| For the Period: | ||||||||||||||||||||
| Operating Results | ||||||||||||||||||||
| Net Interest Income | $ |
123,514 |
|
$ |
120,569 |
|
$ |
126,691 |
|
$ |
244,083 |
|
$ |
252,657 |
|
|||||
| Provision for Credit Losses |
|
(16,100 |
) |
|
(14,300 |
) |
|
40,400 |
|
|
(30,400 |
) |
|
74,000 |
|
|||||
| Total Noninterest Income |
|
44,431 |
|
|
42,970 |
|
|
51,268 |
|
|
87,401 |
|
|
97,417 |
|
|||||
| Total Noninterest Expense |
|
96,527 |
|
|
98,865 |
|
|
88,892 |
|
|
195,392 |
|
|
185,204 |
|
|||||
| Net Income |
|
67,533 |
|
|
59,949 |
|
|
38,908 |
|
|
127,482 |
|
|
73,650 |
|
|||||
| Basic Earnings Per Common Share |
|
1.69 |
|
|
1.51 |
|
|
0.98 |
|
|
3.20 |
|
|
1.86 |
|
|||||
| Diluted Earnings Per Common Share |
|
1.68 |
|
|
1.50 |
|
|
0.98 |
|
|
3.18 |
|
|
1.85 |
|
|||||
| Dividends Declared Per Common Share |
|
0.67 |
|
|
0.67 |
|
|
0.67 |
|
|
1.34 |
|
|
1.34 |
|
|||||
| Performance Ratios | ||||||||||||||||||||
| Return on Average Assets |
|
1.23 |
% |
|
1.15 |
% |
|
0.82 |
% |
|
1.19 |
% |
|
0.79 |
% |
|||||
| Return on Average Shareholders' Equity |
|
19.17 |
|
|
17.65 |
|
|
11.58 |
|
|
18.43 |
|
|
11.11 |
|
|||||
| Return on Average Common Equity |
|
19.60 |
|
|
17.65 |
|
|
11.58 |
|
|
18.63 |
|
|
11.11 |
|
|||||
| Efficiency Ratio 1 |
|
57.47 |
|
|
60.45 |
|
|
49.95 |
|
|
58.94 |
|
|
52.90 |
|
|||||
| Net Interest Margin 2 |
|
2.37 |
|
|
2.43 |
|
|
2.83 |
|
|
2.40 |
|
|
2.90 |
|
|||||
| Dividend Payout Ratio 3 |
|
39.64 |
|
|
44.37 |
|
|
68.37 |
|
|
41.88 |
|
|
72.04 |
|
|||||
| Average Shareholders' Equity to Average Assets |
|
6.40 |
|
|
6.51 |
|
|
7.04 |
|
|
6.45 |
|
|
7.12 |
|
|||||
| Average Balances | ||||||||||||||||||||
| Average Loans and Leases | $ |
12,096,308 |
|
$ |
11,952,587 |
|
$ |
11,727,649 |
|
$ |
12,024,844 |
|
$ |
11,394,178 |
|
|||||
| Average Assets |
|
22,073,569 |
|
|
21,150,670 |
|
|
19,189,581 |
|
|
21,614,669 |
|
|
18,706,092 |
|
|||||
| Average Deposits |
|
19,698,285 |
|
|
18,665,222 |
|
|
16,679,511 |
|
|
19,184,607 |
|
|
16,248,628 |
|
|||||
| Average Shareholders' Equity |
|
1,412,924 |
|
|
1,377,272 |
|
|
1,351,345 |
|
|
1,395,197 |
|
|
1,332,596 |
|
|||||
| Per Share of Common Stock | ||||||||||||||||||||
| Book Value | $ |
34.80 |
|
$ |
33.67 |
|
$ |
33.76 |
|
$ |
34.80 |
|
$ |
33.76 |
|
|||||
| Tangible Book Value |
|
34.02 |
|
|
32.89 |
|
|
32.97 |
|
|
34.02 |
|
|
32.97 |
|
|||||
| Market Value | ||||||||||||||||||||
| Closing |
|
84.22 |
|
|
89.49 |
|
|
61.41 |
|
|
84.22 |
|
|
61.41 |
|
|||||
| High |
|
95.95 |
|
|
99.10 |
|
|
72.74 |
|
|
99.10 |
|
|
95.53 |
|
|||||
| Low |
|
81.23 |
|
|
75.65 |
|
|
51.15 |
|
|
75.65 |
|
|
46.70 |
|
|||||
June 30, |
|
March 31, |
|
December 31, |
|
June 30, |
||||||||||||||
2021 |
|
2021 |
|
2020 |
|
2020 |
||||||||||||||
| As of Period End: | ||||||||||||||||||||
| Balance Sheet Totals | ||||||||||||||||||||
| Loans and Leases | $ |
12,041,378 |
|
$ |
12,140,703 |
|
$ |
11,940,020 |
|
$ |
11,805,370 |
|
||||||||
| Total Assets |
|
22,672,183 |
|
|
21,947,271 |
|
|
20,603,651 |
|
|
19,769,942 |
|
||||||||
| Total Deposits |
|
20,169,709 |
|
|
19,556,651 |
|
|
18,211,621 |
|
|
17,423,155 |
|
||||||||
| Other Debt |
|
10,437 |
|
|
60,459 |
|
|
60,481 |
|
|
60,524 |
|
||||||||
| Total Shareholders' Equity |
|
1,583,531 |
|
|
1,360,221 |
|
|
1,374,507 |
|
|
1,352,082 |
|
||||||||
| Asset Quality | ||||||||||||||||||||
| Non-Performing Assets | $ |
18,974 |
|
$ |
17,883 |
|
$ |
18,481 |
|
$ |
22,701 |
|
||||||||
| Allowance for Credit Losses - Loans and Leases |
|
180,385 |
|
|
198,343 |
|
|
216,252 |
|
|
173,439 |
|
||||||||
| Allowance to Loans and Leases Outstanding 4 |
|
1.50 |
% |
|
1.63 |
% |
|
1.81 |
% |
|
1.47 |
% |
||||||||
| Capital Ratios 5 | ||||||||||||||||||||
| Common Equity Tier 1 Capital Ratio |
|
12.36 |
% |
|
12.35 |
% |
|
12.06 |
% |
|
12.04 |
% |
||||||||
| Tier 1 Capital Ratio |
|
13.87 |
|
|
12.35 |
|
|
12.06 |
|
|
12.04 |
|
||||||||
| Total Capital Ratio |
|
15.13 |
|
|
13.61 |
|
|
13.31 |
|
|
13.29 |
|
||||||||
| Tier 1 Leverage Ratio |
|
7.31 |
|
|
6.61 |
|
|
6.71 |
|
|
6.90 |
|
||||||||
| Total Shareholders' Equity to Total Assets |
|
6.98 |
|
|
6.20 |
|
|
6.67 |
|
|
6.84 |
|
||||||||
| Tangible Common Equity to Tangible Assets 6 |
|
6.08 |
|
|
6.06 |
|
|
6.53 |
|
|
6.69 |
|
||||||||
| Tangible Common Equity to Risk-Weighted Assets 6 |
|
11.85 |
|
|
11.78 |
|
|
11.89 |
|
|
12.07 |
|
||||||||
| Non-Financial Data | ||||||||||||||||||||
| Full-Time Equivalent Employees |
|
2,085 |
|
|
2,058 |
|
|
2,022 |
|
|
2,112 |
|
||||||||
| Branches |
|
54 |
|
|
63 |
|
|
65 |
|
|
67 |
|
||||||||
| ATMs |
|
312 |
|
|
361 |
|
|
357 |
|
|
367 |
|
||||||||
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 common share divided by basic earnings per common share. | |
4 |
The numerator comprises the Allowance for Credit Losses - Loans and Leases. | |
5 |
Regulatory capital ratios as of June 30, 2021 are preliminary. | |
6 |
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 | |||||||||||||||
June 30, |
|
March 31, |
|
December 31, |
|
June 30, |
||||||||||
| (dollars in thousands) | 2021 |
|
2021 |
|
2020 |
|
2020 |
|||||||||
| Total Shareholders' Equity | $ |
1,583,531 |
|
$ |
1,360,221 |
|
$ |
1,374,507 |
|
$ |
1,352,082 |
|
||||
| Less:Preferred Stock |
|
175,487 |
|
|
- |
|
|
- |
|
|
- |
|
||||
| Goodwill |
|
31,517 |
|
|
31,517 |
|
|
31,517 |
|
|
31,517 |
|
||||
| Tangible Common Equity | $ |
1,376,527 |
|
$ |
1,328,704 |
|
$ |
1,342,990 |
|
$ |
1,320,565 |
|
||||
| Total Assets | $ |
22,672,183 |
|
$ |
21,947,271 |
|
$ |
20,603,651 |
|
$ |
19,769,942 |
|
||||
| Less:Goodwill |
|
31,517 |
|
|
31,517 |
|
|
31,517 |
|
|
31,517 |
|
||||
| Tangible Assets | $ |
22,640,666 |
|
$ |
21,915,754 |
|
$ |
20,572,134 |
|
$ |
19,738,425 |
|
||||
| Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements | $ |
11,614,522 |
|
$ |
11,275,565 |
|
$ |
11,295,077 |
|
$ |
10,941,894 |
|
||||
| Total Shareholders' Equity to Total Assets |
|
6.98 |
% |
|
6.20 |
% |
|
6.67 |
% |
|
6.84 |
% |
||||
| Tangible Common Equity to Tangible Assets (Non-GAAP) |
|
6.08 |
% |
|
6.06 |
% |
|
6.53 |
% |
|
6.69 |
% |
||||
| Tier 1 Capital Ratio |
|
13.87 |
% |
|
12.35 |
% |
|
12.06 |
% |
|
12.04 |
% |
||||
| Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) |
|
11.85 |
% |
|
11.78 |
% |
|
11.89 |
% |
|
12.07 |
% |
||||
| Note: Risk-Weighted Assets and Regulatory capital ratios as of June 30, 2021 are preliminary. |
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||||||||
| Consolidated Statements of Income | Table 3 | |||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
||||||||||||
| (dollars in thousands, except per share amounts) | 2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
| Interest Income | ||||||||||||||||||
| Interest and Fees on Loans and Leases | $ |
100,894 |
|
$ |
99,299 |
|
$ |
107,628 |
$ |
200,193 |
|
$ |
215,838 |
|||||
| Income on Investment Securities | ||||||||||||||||||
| Available-for-Sale |
|
16,467 |
|
|
15,837 |
|
|
14,576 |
|
32,304 |
|
|
31,287 |
|||||
| Held-to-Maturity |
|
13,576 |
|
|
13,300 |
|
|
16,723 |
|
26,876 |
|
|
35,975 |
|||||
| Deposits |
|
- |
|
|
7 |
|
|
1 |
|
7 |
|
|
10 |
|||||
| Funds Sold |
|
260 |
|
|
137 |
|
|
92 |
|
397 |
|
|
638 |
|||||
| Other |
|
182 |
|
|
185 |
|
|
125 |
|
367 |
|
|
343 |
|||||
| Total Interest Income |
|
131,379 |
|
|
128,765 |
|
|
139,145 |
|
260,144 |
|
|
284,091 |
|||||
| Interest Expense | ||||||||||||||||||
| Deposits |
|
4,152 |
|
|
4,329 |
|
|
7,954 |
|
8,481 |
|
|
22,214 |
|||||
| Securities Sold Under Agreements to Repurchase |
|
3,470 |
|
|
3,533 |
|
|
4,020 |
|
7,003 |
|
|
8,045 |
|||||
| Funds Purchased |
|
- |
|
|
1 |
|
|
18 |
|
1 |
|
|
90 |
|||||
| Short-Term Borrowings |
|
- |
|
|
- |
|
|
22 |
|
- |
|
|
61 |
|||||
| Other Debt |
|
243 |
|
|
333 |
|
|
440 |
|
576 |
|
|
1,024 |
|||||
| Total Interest Expense |
|
7,865 |
|
|
8,196 |
|
|
12,454 |
|
16,061 |
|
|
31,434 |
|||||
| Net Interest Income |
|
123,514 |
|
|
120,569 |
|
|
126,691 |
|
244,083 |
|
|
252,657 |
|||||
| Provision for Credit Losses |
|
(16,100 |
) |
|
(14,300 |
) |
|
40,400 |
|
(30,400 |
) |
|
74,000 |
|||||
| Net Interest Income After Provision for Credit Losses |
|
139,614 |
|
|
134,869 |
|
|
86,291 |
|
274,483 |
|
|
178,657 |
|||||
| Noninterest Income | ||||||||||||||||||
| Trust and Asset Management |
|
11,682 |
|
|
11,278 |
|
|
10,550 |
|
22,960 |
|
|
21,465 |
|||||
| Mortgage Banking |
|
3,058 |
|
|
5,862 |
|
|
4,278 |
|
8,920 |
|
|
6,973 |
|||||
| Service Charges on Deposit Accounts |
|
6,065 |
|
|
6,128 |
|
|
5,097 |
|
12,193 |
|
|
12,548 |
|||||
| Fees, Exchange, and Other Service Charges |
|
13,807 |
|
|
13,607 |
|
|
9,417 |
|
27,414 |
|
|
22,617 |
|||||
| Investment Securities Gains (Losses), Net |
|
2,423 |
|
|
(1,203 |
) |
|
13,216 |
|
1,220 |
|
|
12,246 |
|||||
| Annuity and Insurance |
|
911 |
|
|
702 |
|
|
883 |
|
1,613 |
|
|
1,811 |
|||||
| Bank-Owned Life Insurance |
|
2,063 |
|
|
1,917 |
|
|
1,649 |
|
3,980 |
|
|
3,229 |
|||||
| Other |
|
4,422 |
|
|
4,679 |
|
|
6,178 |
|
9,101 |
|
|
16,528 |
|||||
| Total Noninterest Income |
|
44,431 |
|
|
42,970 |
|
|
51,268 |
|
87,401 |
|
|
97,417 |
|||||
| Noninterest Expense | ||||||||||||||||||
| Salaries and Benefits |
|
56,161 |
|
|
56,251 |
|
|
50,715 |
|
112,412 |
|
|
105,178 |
|||||
| Net Occupancy |
|
5,047 |
|
|
9,090 |
|
|
8,761 |
|
14,137 |
|
|
17,716 |
|||||
| Net Equipment |
|
8,796 |
|
|
8,878 |
|
|
8,195 |
|
17,674 |
|
|
16,651 |
|||||
| Data Processing |
|
4,557 |
|
|
6,322 |
|
|
4,416 |
|
10,879 |
|
|
9,204 |
|||||
| Professional Fees |
|
3,114 |
|
|
3,406 |
|
|
3,061 |
|
6,520 |
|
|
6,269 |
|||||
| FDIC Insurance |
|
1,669 |
|
|
1,654 |
|
|
1,558 |
|
3,323 |
|
|
3,014 |
|||||
| Other |
|
17,183 |
|
|
13,264 |
|
|
12,186 |
|
30,447 |
|
|
27,172 |
|||||
| Total Noninterest Expense |
|
96,527 |
|
|
98,865 |
|
|
88,892 |
|
195,392 |
|
|
185,204 |
|||||
| Income Before Provision for Income Taxes |
|
87,518 |
|
|
78,974 |
|
|
48,667 |
|
166,492 |
|
|
90,870 |
|||||
| Provision for Income Taxes |
|
19,985 |
|
|
19,025 |
|
|
9,759 |
|
39,010 |
|
|
17,220 |
|||||
| Net Income | $ |
67,533 |
|
$ |
59,949 |
|
$ |
38,908 |
$ |
127,482 |
|
$ |
73,650 |
|||||
| Basic Earnings Per Common Share | $ |
1.69 |
|
$ |
1.51 |
|
$ |
0.98 |
$ |
3.20 |
|
$ |
1.86 |
|||||
| Diluted Earnings Per Common Share | $ |
1.68 |
|
$ |
1.50 |
|
$ |
0.98 |
$ |
3.18 |
|
$ |
1.85 |
|||||
| Dividends Declared Per Common Share | $ |
0.67 |
|
$ |
0.67 |
|
$ |
0.67 |
$ |
1.34 |
|
$ |
1.34 |
|||||
| Basic Weighted Average Common Shares |
|
39,902,583 |
|
|
39,827,590 |
|
|
39,703,735 |
|
39,865,268 |
|
|
39,692,695 |
|||||
| Diluted Weighted Average Common Shares |
|
40,122,905 |
|
|
40,071,477 |
|
|
39,832,475 |
|
40,096,527 |
|
|
39,873,334 |
|||||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||||||||
| Consolidated Statements of Comprehensive Income | Table 4 | |||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
||||||||||||
| (dollars in thousands) | 2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
| Net Income | $ |
67,533 |
|
$ |
59,949 |
|
$ |
38,908 |
$ |
127,482 |
|
$ |
73,650 |
|||||
| Other Comprehensive Income (Loss), Net of Tax: | ||||||||||||||||||
| Net Unrealized Gains (Losses) on Investment Securities |
|
(123 |
) |
|
(50,050 |
) |
|
7,730 |
|
(50,173 |
) |
|
49,289 |
|||||
| Defined Benefit Plans |
|
442 |
|
|
441 |
|
|
374 |
|
883 |
|
|
748 |
|||||
| Other Comprehensive Income (Loss) |
|
319 |
|
|
(49,609 |
) |
|
8,104 |
|
(49,290 |
) |
|
50,037 |
|||||
| Comprehensive Income | $ |
67,852 |
|
$ |
10,340 |
|
$ |
47,012 |
$ |
78,192 |
|
$ |
123,687 |
|||||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||||||
| Consolidated Statements of Condition | Table 5 | |||||||||||||||
| June 30, | March 31, | December 31, | June 30, | |||||||||||||
| (dollars in thousands) | 2021 |
|
2021 |
|
2020 |
|
2020 |
|||||||||
| Assets | ||||||||||||||||
| Interest-Bearing Deposits in Other Banks | $ |
2,584 |
|
$ |
4,506 |
|
$ |
1,646 |
|
$ |
2,310 |
|
||||
| Funds Sold |
|
909,730 |
|
|
1,101,631 |
|
|
333,022 |
|
|
800,857 |
|
||||
| Investment Securities | ||||||||||||||||
| Available-for-Sale |
|
4,522,941 |
|
|
4,024,763 |
|
|
3,791,689 |
|
|
2,726,478 |
|
||||
| Held-to-Maturity (Fair Value of $3,965,117; $3,477,346; $3,348,693; and $3,374,294) |
|
3,947,613 |
|
|
3,464,360 |
|
|
3,262,727 |
|
|
3,276,829 |
|
||||
| Loans Held for Sale |
|
47,490 |
|
|
18,320 |
|
|
82,565 |
|
|
20,711 |
|
||||
| Loans and Leases |
|
12,041,378 |
|
|
12,140,703 |
|
|
11,940,020 |
|
|
11,805,370 |
|
||||
| Allowance for Credit Losses |
|
(180,385 |
) |
|
(198,343 |
) |
|
(216,252 |
) |
|
(173,439 |
) |
||||
| Net Loans and Leases |
|
11,860,993 |
|
|
11,942,360 |
|
|
11,723,768 |
|
|
11,631,931 |
|
||||
| Total Earning Assets |
|
21,291,351 |
|
|
20,555,940 |
|
|
19,195,417 |
|
|
18,459,116 |
|
||||
| Cash and Due from Banks |
|
269,153 |
|
|
286,717 |
|
|
279,420 |
|
|
242,423 |
|
||||
| Premises and Equipment, Net |
|
198,508 |
|
|
198,107 |
|
|
199,695 |
|
|
198,582 |
|
||||
| Operating Lease Right-of-Use Assets |
|
97,264 |
|
|
97,750 |
|
|
99,542 |
|
|
97,166 |
|
||||
| Accrued Interest Receivable |
|
47,046 |
|
|
47,917 |
|
|
49,303 |
|
|
50,645 |
|
||||
| Foreclosed Real Estate |
|
2,332 |
|
|
2,332 |
|
|
2,332 |
|
|
2,506 |
|
||||
| Mortgage Servicing Rights |
|
21,473 |
|
|
22,320 |
|
|
19,652 |
|
|
22,904 |
|
||||
| Goodwill |
|
31,517 |
|
|
31,517 |
|
|
31,517 |
|
|
31,517 |
|
||||
| Bank-Owned Life Insurance |
|
292,805 |
|
|
291,764 |
|
|
291,480 |
|
|
291,185 |
|
||||
| Other Assets |
|
420,734 |
|
|
412,907 |
|
|
435,293 |
|
|
373,898 |
|
||||
| Total Assets | $ |
22,672,183 |
|
$ |
21,947,271 |
|
$ |
20,603,651 |
|
$ |
19,769,942 |
|
||||
| Liabilities | ||||||||||||||||
| Deposits | ||||||||||||||||
| Noninterest-Bearing Demand | $ |
6,570,232 |
|
$ |
6,227,436 |
|
$ |
5,749,612 |
|
$ |
5,485,015 |
|
||||
| Interest-Bearing Demand |
|
4,498,825 |
|
|
4,379,243 |
|
|
4,040,733 |
|
|
3,437,654 |
|
||||
| Savings |
|
7,704,575 |
|
|
7,474,580 |
|
|
6,759,213 |
|
|
6,821,710 |
|
||||
| Time |
|
1,396,077 |
|
|
1,475,392 |
|
|
1,662,063 |
|
|
1,678,776 |
|
||||
| Total Deposits |
|
20,169,709 |
|
|
19,556,651 |
|
|
18,211,621 |
|
|
17,423,155 |
|
||||
| Funds Purchased |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
||||
| Short-Term Borrowings |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
||||
| Securities Sold Under Agreements to Repurchase |
|
550,490 |
|
|
600,490 |
|
|
600,590 |
|
|
603,206 |
|
||||
| Other Debt |
|
10,437 |
|
|
60,459 |
|
|
60,481 |
|
|
60,524 |
|
||||
| Operating Lease Liabilities |
|
105,380 |
|
|
105,820 |
|
|
107,412 |
|
|
104,741 |
|
||||
| Retirement Benefits Payable |
|
50,260 |
|
|
50,687 |
|
|
51,197 |
|
|
43,833 |
|
||||
| Accrued Interest Payable |
|
3,879 |
|
|
4,109 |
|
|
5,117 |
|
|
7,775 |
|
||||
| Taxes Payable and Deferred Taxes |
|
11,844 |
|
|
15,599 |
|
|
2,463 |
|
|
38,297 |
|
||||
| Other Liabilities |
|
186,653 |
|
|
193,235 |
|
|
190,263 |
|
|
136,329 |
|
||||
| Total Liabilities |
|
21,088,652 |
|
|
20,587,050 |
|
|
19,229,144 |
|
|
18,417,860 |
|
||||
| Shareholders' Equity | ||||||||||||||||
| Preferred Stock ($.01 par value; authorized 180,000 shares; issued and outstanding: June 30, 2021 - 180,000 shares) |
|
180,000 |
|
|
- |
|
|
- |
|
|
- |
|
||||
| Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2021 - 58,557,754 / 40,465,482; March 31, 2021 - 58,553,365 / 40,394,234; December 31, 2020 - 58,285,624 / 40,119,312; and June 30, 2020 - 58,263,452 / 40,047,694) |
|
580 |
|
|
580 |
|
|
580 |
|
|
580 |
|
||||
| Capital Surplus |
|
594,261 |
|
|
594,804 |
|
|
591,360 |
|
|
586,946 |
|
||||
| Accumulated Other Comprehensive Income (Loss) |
|
(41,468 |
) |
|
(41,787 |
) |
|
7,822 |
|
|
18,925 |
|
||||
| Retained Earnings |
|
1,884,431 |
|
|
1,844,057 |
|
|
1,811,979 |
|
|
1,786,351 |
|
||||
| Treasury Stock, at Cost (Shares: June 30, 2021 - 18,092,272; March 31, 2021 - 18,159,131; December 31, 2020 - 18,166,312; and June 30, 2020 - 18,215,758) |
|
(1,034,273 |
) |
|
(1,037,433 |
) |
|
(1,037,234 |
) |
|
(1,040,720 |
) |
||||
| Total Shareholders' Equity |
|
1,583,531 |
|
|
1,360,221 |
|
|
1,374,507 |
|
|
1,352,082 |
|
||||
| Total Liabilities and Shareholders' Equity | $ |
22,672,183 |
|
$ |
21,947,271 |
|
$ |
20,603,651 |
|
$ |
19,769,942 |
|
||||
| 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 | - |
|
- |
- |
|
|
- |
|
- |
|
|
- |
|
|
127,482 |
|
|
- |
|
|
127,482 |
|
|||||||||
| Other Comprehensive Loss | - |
|
- |
- |
|
|
- |
|
- |
|
|
(49,290 |
) |
|
- |
|
|
- |
|
|
(49,290 |
) |
|||||||||
| Share-Based Compensation | - |
|
- |
- |
|
|
- |
|
6,122 |
|
|
- |
|
|
- |
|
|
- |
|
|
6,122 |
|
|||||||||
| Preferred Stock Issued, Net | 180,000 |
|
180,000 |
- |
|
|
- |
|
(4,513 |
) |
|
- |
|
|
- |
|
|
- |
|
|
175,487 |
|
|||||||||
| Common Stock Issued under Purchase and Equity Compensation Plans | - |
|
- |
383,326 |
|
|
- |
|
1,292 |
|
|
- |
|
|
(891 |
) |
|
6,259 |
|
|
6,660 |
|
|||||||||
| Common Stock Repurchased | - |
|
- |
(37,156 |
) |
|
- |
|
- |
|
|
- |
|
|
- |
|
|
(3,298 |
) |
|
(3,298 |
) |
|||||||||
| Cash Dividends Declared Common Stock ($1.34 per share) | - |
|
- |
- |
|
|
- |
|
- |
|
|
- |
|
|
(54,139 |
) |
|
- |
|
|
(54,139 |
) |
|||||||||
| Balance as of June 30, 2021 | 180,000 |
$ |
180,000 |
40,465,482 |
|
$ |
580 |
$ |
594,261 |
|
$ |
(41,468 |
) |
$ |
1,884,431 |
|
$ |
(1,034,273 |
) |
$ |
1,583,531 |
|
|||||||||
| 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 | - |
|
- |
- |
|
|
- |
|
- |
|
|
- |
|
|
73,650 |
|
|
- |
|
|
73,650 |
|
|||||||||
| Other Comprehensive Income | - |
|
- |
- |
|
|
- |
|
- |
|
|
50,037 |
|
|
- |
|
|
- |
|
|
50,037 |
|
|||||||||
| Cumulative Change in Accounting Principle | - |
|
- |
- |
|
|
- |
|
- |
|
|
- |
|
|
3,632 |
|
|
- |
|
|
3,632 |
|
|||||||||
| Share-Based Compensation | - |
|
- |
- |
|
|
- |
|
3,704 |
|
|
- |
|
|
- |
|
|
- |
|
|
3,704 |
|
|||||||||
| Common Stock Issued under Purchase and Equity Compensation Plans | - |
|
- |
195,351 |
|
|
1 |
|
676 |
|
|
- |
|
|
1,333 |
|
|
3,041 |
|
|
5,051 |
|
|||||||||
| Common Stock Repurchased | - |
|
- |
(187,352 |
) |
|
- |
|
- |
|
|
- |
|
|
- |
|
|
(17,145 |
) |
|
(17,145 |
) |
|||||||||
| Cash Dividends Declared Common Stock ($1.34 per share) | - |
|
- |
- |
|
|
- |
|
- |
|
|
- |
|
|
(53,679 |
) |
|
- |
|
|
(53,679 |
) |
|||||||||
| Balance as of June 30, 2020 | - |
$ |
- |
40,047,694 |
|
$ |
580 |
$ |
586,946 |
|
$ |
18,925 |
|
$ |
1,786,351 |
|
$ |
(1,040,720 |
) |
$ |
1,352,082 |
|
|||||||||
| 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 | |||||||||||||||||||||||||||
| June 30, 2021 | March 31, 2021 | June 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 | $ |
2.2 |
$ |
- |
0.04 |
% |
$ |
3.2 |
|
$ |
- |
0.93 |
% |
$ |
2.6 |
|
$ |
- |
0.18 |
% |
|||||||||
| Funds Sold |
|
946.2 |
|
0.3 |
0.11 |
|
|
550.6 |
|
|
0.1 |
0.10 |
|
|
545.9 |
|
|
0.1 |
0.07 |
|
|||||||||
| Investment Securities | |||||||||||||||||||||||||||||
| Available-for-Sale | |||||||||||||||||||||||||||||
| Taxable |
|
4,290.8 |
|
16.3 |
1.53 |
|
|
4,007.9 |
|
|
15.8 |
1.57 |
|
|
2,614.1 |
|
|
14.3 |
2.19 |
|
|||||||||
| Non-Taxable |
|
12.3 |
|
0.1 |
4.27 |
|
|
12.3 |
|
|
0.1 |
4.27 |
|
|
32.2 |
|
|
0.4 |
4.45 |
|
|||||||||
| Held-to-Maturity | |||||||||||||||||||||||||||||
| Taxable |
|
3,496.2 |
|
13.4 |
1.53 |
|
|
3,385.8 |
|
|
13.1 |
1.55 |
|
|
2,957.6 |
|
|
16.4 |
2.22 |
|
|||||||||
| Non-Taxable |
|
41.5 |
|
0.3 |
2.53 |
|
|
38.1 |
|
|
0.2 |
2.55 |
|
|
54.4 |
|
|
0.4 |
2.66 |
|
|||||||||
| Total Investment Securities |
|
7,840.8 |
|
30.1 |
1.54 |
|
|
7,444.1 |
|
|
29.2 |
1.57 |
|
|
5,658.3 |
|
|
31.5 |
2.22 |
|
|||||||||
| Loans Held for Sale |
|
25.7 |
|
0.2 |
2.86 |
|
|
26.2 |
|
|
0.2 |
2.76 |
|
|
23.4 |
|
|
0.2 |
3.24 |
|
|||||||||
| Loans and Leases 1 | |||||||||||||||||||||||||||||
| Commercial and Industrial |
|
1,934.5 |
|
16.8 |
3.49 |
|
|
1,904.5 |
|
|
14.3 |
3.05 |
|
|
1,963.8 |
|
|
17.9 |
3.67 |
|
|||||||||
| Commercial Mortgage |
|
2,883.5 |
|
21.3 |
2.96 |
|
|
2,846.0 |
|
|
21.3 |
3.04 |
|
|
2,622.9 |
|
|
22.3 |
3.42 |
|
|||||||||
| Construction |
|
285.6 |
|
2.6 |
3.66 |
|
|
264.1 |
|
|
2.3 |
3.48 |
|
|
255.8 |
|
|
2.5 |
3.93 |
|
|||||||||
| Commercial Lease Financing |
|
105.7 |
|
0.4 |
1.54 |
|
|
106.4 |
|
|
0.4 |
1.43 |
|
|
110.9 |
|
|
0.5 |
1.88 |
|
|||||||||
| Residential Mortgage |
|
4,234.3 |
|
35.6 |
3.35 |
|
|
4,146.6 |
|
|
35.9 |
3.46 |
|
|
3,939.6 |
|
|
36.0 |
3.65 |
|
|||||||||
| Home Equity |
|
1,573.4 |
|
12.1 |
3.09 |
|
|
1,594.1 |
|
|
12.6 |
3.20 |
|
|
1,665.2 |
|
|
14.3 |
3.45 |
|
|||||||||
| Automobile |
|
710.4 |
|
6.1 |
3.45 |
|
|
708.3 |
|
|
6.1 |
3.51 |
|
|
701.2 |
|
|
6.2 |
3.55 |
|
|||||||||
| Other 2 |
|
368.9 |
|
6.0 |
6.53 |
|
|
382.6 |
|
|
6.4 |
6.75 |
|
|
468.2 |
|
|
7.9 |
6.77 |
|
|||||||||
| Total Loans and Leases |
|
12,096.3 |
|
100.9 |
3.34 |
|
|
11,952.6 |
|
|
99.3 |
3.35 |
|
|
11,727.6 |
|
|
107.6 |
3.68 |
|
|||||||||
| Other |
|
32.3 |
|
0.2 |
2.26 |
|
|
33.4 |
|
|
0.2 |
2.21 |
|
|
34.0 |
|
|
0.1 |
1.47 |
|
|||||||||
| Total Earning Assets 3 |
|
20,943.5 |
|
131.7 |
2.52 |
|
|
20,010.1 |
|
|
129.0 |
2.60 |
|
|
17,991.8 |
|
|
139.5 |
3.11 |
|
|||||||||
| Cash and Due from Banks |
|
256.1 |
|
270.7 |
|
|
302.4 |
|
|||||||||||||||||||||
| Other Assets |
|
874.0 |
|
869.9 |
|
|
895.4 |
|
|||||||||||||||||||||
| Total Assets | $ |
22,073.6 |
$ |
21,150.7 |
|
$ |
19,189.6 |
|
|||||||||||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||||||||||||||
| Interest-Bearing Deposits | |||||||||||||||||||||||||||||
| Demand | $ |
4,452.4 |
|
0.7 |
0.07 |
|
$ |
4,186.4 |
|
|
0.6 |
0.06 |
|
$ |
3,226.6 |
|
|
0.6 |
0.07 |
|
|||||||||
| Savings |
|
7,533.0 |
|
1.8 |
0.09 |
|
|
7,016.6 |
|
|
1.5 |
0.09 |
|
|
6,691.4 |
|
|
2.2 |
0.13 |
|
|||||||||
| Time |
|
1,418.4 |
|
1.7 |
0.47 |
|
|
1,630.0 |
|
|
2.2 |
0.56 |
|
|
1,826.8 |
|
|
5.2 |
1.13 |
|
|||||||||
| Total Interest-Bearing Deposits |
|
13,403.8 |
|
4.2 |
0.12 |
|
|
12,833.0 |
|
|
4.3 |
0.14 |
|
|
11,744.8 |
|
|
8.0 |
0.27 |
|
|||||||||
| Short-Term Borrowings |
|
- |
|
- |
- |
|
|
2.4 |
|
|
- |
0.09 |
|
|
57.6 |
|
|
- |
0.28 |
|
|||||||||
| Securities Sold Under Agreements to Repurchase |
|
570.3 |
|
3.5 |
2.41 |
|
|
600.5 |
|
|
3.6 |
2.35 |
|
|
602.9 |
|
|
4.0 |
2.64 |
|
|||||||||
| Other Debt |
|
30.2 |
|
0.2 |
3.22 |
|
|
60.5 |
|
|
0.3 |
2.22 |
|
|
60.5 |
|
|
0.5 |
2.91 |
|
|||||||||
| Total Interest-Bearing Liabilities |
|
14,004.3 |
|
7.9 |
0.22 |
|
|
13,496.4 |
|
|
8.2 |
0.24 |
|
|
12,465.8 |
|
|
12.5 |
0.40 |
|
|||||||||
| Net Interest Income | $ |
123.8 |
$ |
120.8 |
$ |
127.0 |
|||||||||||||||||||||||
| Interest Rate Spread |
|
2.30 |
% |
|
2.36 |
% |
2.71 |
% |
|||||||||||||||||||||
| Net Interest Margin |
|
2.37 |
% |
|
2.43 |
% |
2.83 |
% |
|||||||||||||||||||||
| Noninterest-Bearing Demand Deposits |
|
6,294.5 |
|
5,832.2 |
|
|
4,934.7 |
|
|||||||||||||||||||||
| Other Liabilities |
|
361.9 |
|
444.8 |
|
|
437.8 |
|
|||||||||||||||||||||
| Shareholders' Equity |
|
1,412.9 |
|
1,377.3 |
|
|
1,351.3 |
|
|||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ |
22,073.6 |
$ |
21,150.7 |
|
$ |
19,189.6 |
|
|||||||||||||||||||||
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 $269,000, $252,000, and $358,000 for the three months ended June 30, 2021, March 31, 2021, and June 30, 2020, respectively. | |||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||||||||
| Average Balances and Interest Rates - Taxable-Equivalent Basis | Table 7b |
|||||||||||||||||
| Six Months Ended | Six Months Ended | |||||||||||||||||
| June 30, 2021 | June 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 | $ |
2.7 |
$ |
- |
0.56 |
% |
$ |
2.0 |
$ |
- |
0.96 |
% |
||||||
| Funds Sold |
|
749.5 |
|
0.4 |
0.11 |
|
|
349.3 |
|
0.6 |
0.36 |
|
||||||
| Investment Securities | ||||||||||||||||||
| Available-for-Sale | ||||||||||||||||||
| Taxable |
|
4,150.2 |
|
32.1 |
1.55 |
|
|
2,658.3 |
|
30.8 |
2.31 |
|
||||||
| Non-Taxable |
|
12.3 |
|
0.3 |
4.27 |
|
|
32.3 |
|
0.7 |
4.43 |
|
||||||
| Held-to-Maturity | ||||||||||||||||||
| Taxable |
|
3,441.3 |
|
26.5 |
1.54 |
|
|
2,996.9 |
|
35.4 |
2.36 |
|
||||||
| Non-Taxable |
|
39.8 |
|
0.5 |
2.54 |
|
|
54.5 |
|
0.7 |
2.67 |
|
||||||
| Total Investment Securities |
|
7,643.6 |
|
59.4 |
1.55 |
|
|
5,742.0 |
|
67.6 |
2.35 |
|
||||||
| Loans Held for Sale |
|
25.9 |
|
0.4 |
2.81 |
|
|
23.3 |
|
0.4 |
3.39 |
|
||||||
| Loans and Leases 1 | ||||||||||||||||||
| Commercial and Industrial |
|
1,919.5 |
|
31.2 |
3.27 |
|
|
1,686.5 |
|
31.1 |
3.71 |
|
||||||
| Commercial Mortgage |
|
2,864.9 |
|
42.6 |
3.00 |
|
|
2,586.2 |
|
47.4 |
3.69 |
|
||||||
| Construction |
|
274.9 |
|
4.9 |
3.57 |
|
|
234.6 |
|
5.0 |
4.26 |
|
||||||
| Commercial Lease Financing |
|
106.1 |
|
0.8 |
1.48 |
|
|
111.1 |
|
1.1 |
1.91 |
|
||||||
| Residential Mortgage |
|
4,190.7 |
|
71.4 |
3.41 |
|
|
3,917.5 |
|
72.9 |
3.72 |
|
||||||
| Home Equity |
|
1,583.7 |
|
24.7 |
3.14 |
|
|
1,672.7 |
|
29.5 |
3.55 |
|
||||||
| Automobile |
|
709.3 |
|
12.2 |
3.48 |
|
|
711.1 |
|
12.6 |
3.56 |
|
||||||
| Other 2 |
|
375.7 |
|
12.4 |
6.64 |
|
|
474.5 |
|
16.3 |
6.92 |
|
||||||
| Total Loans and Leases |
|
12,024.8 |
|
200.2 |
3.35 |
|
|
11,394.2 |
|
215.9 |
3.80 |
|
||||||
| Other |
|
32.9 |
|
0.4 |
2.24 |
|
|
34.2 |
|
0.3 |
2.01 |
|
||||||
| Total Earning Assets 3 |
|
20,479.4 |
|
260.8 |
2.56 |
|
|
17,545.0 |
|
284.8 |
3.26 |
|
||||||
| Cash and Due from Banks |
|
263.4 |
|
290.6 |
||||||||||||||
| Other Assets |
|
871.9 |
|
870.5 |
||||||||||||||
| Total Assets | $ |
21,614.7 |
$ |
18,706.1 |
||||||||||||||
| Interest-Bearing Liabilities | ||||||||||||||||||
| Interest-Bearing Deposits | ||||||||||||||||||
| Demand | $ |
4,320.2 |
|
1.3 |
0.06 |
|
$ |
3,168.3 |
|
1.5 |
0.10 |
|
||||||
| Savings |
|
7,276.2 |
|
3.3 |
0.09 |
|
|
6,596.9 |
|
9.3 |
0.28 |
|
||||||
| Time |
|
1,523.6 |
|
3.9 |
0.52 |
|
|
1,784.9 |
|
11.4 |
1.28 |
|
||||||
| Total Interest-Bearing Deposits |
|
13,120.0 |
|
8.5 |
0.13 |
|
|
11,550.1 |
|
22.2 |
0.39 |
|
||||||
| Short-Term Borrowings |
|
1.2 |
|
- |
0.09 |
|
|
57.7 |
|
0.2 |
0.52 |
|
||||||
| Securities Sold Under Agreements to Repurchase |
|
585.3 |
|
7.0 |
2.38 |
|
|
603.5 |
|
8.0 |
2.64 |
|
||||||
| Other Debt |
|
45.3 |
|
0.6 |
2.56 |
|
|
63.7 |
|
1.0 |
3.23 |
|
||||||
| Total Interest-Bearing Liabilities |
|
13,751.8 |
|
16.1 |
0.23 |
|
|
12,275.0 |
|
31.4 |
0.51 |
|
||||||
| Net Interest Income | $ |
244.7 |
$ |
253.4 |
||||||||||||||
| Interest Rate Spread | 2.33 |
% |
2.75 |
% |
||||||||||||||
| Net Interest Margin | 2.40 |
% |
2.90 |
% |
||||||||||||||
| Noninterest-Bearing Demand Deposits |
|
6,064.6 |
|
4,698.5 |
||||||||||||||
| Other Liabilities |
|
403.1 |
|
400.0 |
||||||||||||||
| Shareholders' Equity |
|
1,395.2 |
|
1,332.6 |
||||||||||||||
| Total Liabilities and Shareholders' Equity | $ |
21,614.7 |
$ |
18,706.1 |
||||||||||||||
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 $521,000 and $715,000 for the six months ended June 30, 2021 and June 30, 2020, respectively. |
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||
| Analysis of Change in Net Interest Income - Taxable-Equivalent Basis | Table 8a |
|||||||||||
| Three Months Ended June 30, 2021 | ||||||||||||
| Compared to March 31, 2021 | ||||||||||||
| (dollars in millions) | Volume 1 | Rate 1 | Total | |||||||||
| Change in Interest Income: | ||||||||||||
| Funds Sold | $ |
0.1 |
|
$ |
0.1 |
|
$ |
0.2 |
|
|||
| Investment Securities | ||||||||||||
| Available-for-Sale | ||||||||||||
| Taxable |
|
1.1 |
|
|
(0.6 |
) |
|
0.5 |
|
|||
| Held-to-Maturity | ||||||||||||
| Taxable |
|
0.4 |
|
|
(0.1 |
) |
|
0.3 |
|
|||
| Non-Taxable |
|
0.1 |
|
|
- |
|
|
0.1 |
|
|||
| Total Investment Securities |
|
1.6 |
|
|
(0.7 |
) |
|
0.9 |
|
|||
| Loans and Leases | ||||||||||||
| Commercial and Industrial |
|
0.2 |
|
|
2.3 |
|
|
2.5 |
|
|||
| Commercial Mortgage |
|
0.4 |
|
|
(0.4 |
) |
|
- |
|
|||
| Construction |
|
0.2 |
|
|
0.1 |
|
|
0.3 |
|
|||
| Residential Mortgage |
|
0.8 |
|
|
(1.1 |
) |
|
(0.3 |
) |
|||
| Home Equity |
|
(0.2 |
) |
|
(0.3 |
) |
|
(0.5 |
) |
|||
| Other 2 |
|
(0.2 |
) |
|
(0.2 |
) |
|
(0.4 |
) |
|||
| Total Loans and Leases |
|
1.2 |
|
|
0.4 |
|
|
1.6 |
|
|||
| Total Change in Interest Income |
|
2.9 |
|
|
(0.2 |
) |
|
2.7 |
|
|||
| Change in Interest Expense: | ||||||||||||
| Interest-Bearing Deposits | ||||||||||||
| Demand |
|
- |
|
|
0.1 |
|
|
0.1 |
|
|||
| Savings |
|
0.1 |
|
|
0.2 |
|
|
0.3 |
|
|||
| Time |
|
(0.2 |
) |
|
(0.3 |
) |
|
(0.5 |
) |
|||
| Total Interest-Bearing Deposits |
|
(0.1 |
) |
|
- |
|
|
(0.1 |
) |
|||
| Securities Sold Under Agreements to Repurchase |
|
(0.2 |
) |
|
0.1 |
|
|
(0.1 |
) |
|||
| Other Debt |
|
(0.2 |
) |
|
0.1 |
|
|
(0.1 |
) |
|||
| Total Change in Interest Expense |
|
(0.5 |
) |
|
0.2 |
|
|
(0.3 |
) |
|||
| Change in Net Interest Income | $ |
3.4 |
|
$ |
(0.4 |
) |
$ |
3.0 |
|
|||
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 June 30, 2021 | ||||||||||||
| Compared to June 30, 2020 | ||||||||||||
| (dollars in millions) | Volume 1 | Rate 1 | Total | |||||||||
| Change in Interest Income: | ||||||||||||
| Funds Sold | $ |
0.1 |
|
$ |
0.1 |
|
$ |
0.2 |
|
|||
| Investment Securities | ||||||||||||
| Available-for-Sale | ||||||||||||
| Taxable |
|
7.2 |
|
|
(5.2 |
) |
|
2.0 |
|
|||
| Non-Taxable |
|
(0.2 |
) |
|
(0.1 |
) |
|
(0.3 |
) |
|||
| Held-to-Maturity | ||||||||||||
| Taxable |
|
2.7 |
|
|
(5.7 |
) |
|
(3.0 |
) |
|||
| Non-Taxable |
|
(0.1 |
) |
|
- |
|
|
(0.1 |
) |
|||
| Total Investment Securities |
|
9.6 |
|
|
(11.0 |
) |
|
(1.4 |
) |
|||
| Loans and Leases | ||||||||||||
| Commercial and Industrial |
|
(0.2 |
) |
|
(0.9 |
) |
|
(1.1 |
) |
|||
| Commercial Mortgage |
|
2.1 |
|
|
(3.1 |
) |
|
(1.0 |
) |
|||
| Construction |
|
0.3 |
|
|
(0.2 |
) |
|
0.1 |
|
|||
| Commercial Lease Financing |
|
- |
|
|
(0.1 |
) |
|
(0.1 |
) |
|||
| Residential Mortgage |
|
2.6 |
|
|
(3.0 |
) |
|
(0.4 |
) |
|||
| Home Equity |
|
(0.8 |
) |
|
(1.4 |
) |
|
(2.2 |
) |
|||
| Automobile |
|
0.1 |
|
|
(0.2 |
) |
|
(0.1 |
) |
|||
| Other 2 |
|
(1.6 |
) |
|
(0.3 |
) |
|
(1.9 |
) |
|||
| Total Loans and Leases |
|
2.5 |
|
|
(9.2 |
) |
|
(6.7 |
) |
|||
| Other |
|
- |
|
|
0.1 |
|
|
0.1 |
|
|||
| Total Change in Interest Income |
|
12.2 |
|
|
(20.0 |
) |
|
(7.8 |
) |
|||
| Change in Interest Expense: | ||||||||||||
| Interest-Bearing Deposits | ||||||||||||
| Demand |
|
0.2 |
|
|
(0.1 |
) |
|
0.1 |
|
|||
| Savings |
|
0.3 |
|
|
(0.7 |
) |
|
(0.4 |
) |
|||
| Time |
|
(1.0 |
) |
|
(2.5 |
) |
|
(3.5 |
) |
|||
| Total Interest-Bearing Deposits |
|
(0.5 |
) |
|
(3.3 |
) |
|
(3.8 |
) |
|||
| Securities Sold Under Agreements to Repurchase |
|
(0.2 |
) |
|
(0.3 |
) |
|
(0.5 |
) |
|||
| Other Debt |
|
(0.3 |
) |
|
- |
|
|
(0.3 |
) |
|||
| Total Change in Interest Expense |
|
(1.0 |
) |
|
(3.6 |
) |
|
(4.6 |
) |
|||
| Change in Net Interest Income | $ |
13.2 |
|
$ |
(16.4 |
) |
$ |
(3.2 |
) |
|||
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 | ||||||||||||
| Analysis of Change in Net Interest Income - Taxable-Equivalent Basis | Table 8c | |||||||||||
| Six Months Ended June 30, 2021 | ||||||||||||
| Compared to June 30, 2020 | ||||||||||||
| (dollars in millions) | Volume 1 | Rate 1 | Total | |||||||||
| Change in Interest Income: | ||||||||||||
| Funds Sold | $ |
0.4 |
|
$ |
(0.6 |
) |
$ |
(0.2 |
) |
|||
| Investment Securities | ||||||||||||
| Available-for-Sale | ||||||||||||
| Taxable |
|
13.6 |
|
|
(12.3 |
) |
|
1.3 |
|
|||
| Non-Taxable |
|
(0.4 |
) |
|
- |
|
|
(0.4 |
) |
|||
| Held-to-Maturity | ||||||||||||
| Taxable |
|
4.7 |
|
|
(13.6 |
) |
|
(8.9 |
) |
|||
| Non-Taxable |
|
(0.2 |
) |
|
- |
|
|
(0.2 |
) |
|||
| Total Investment Securities |
|
17.7 |
|
|
(25.9 |
) |
|
(8.2 |
) |
|||
| Loans Held for Sale |
|
0.1 |
|
|
(0.1 |
) |
|
- |
|
|||
| Loans and Leases | ||||||||||||
| Commercial and Industrial |
|
4.0 |
|
|
(3.9 |
) |
|
0.1 |
|
|||
| Commercial Mortgage |
|
4.7 |
|
|
(9.5 |
) |
|
(4.8 |
) |
|||
| Construction |
|
0.8 |
|
|
(0.9 |
) |
|
(0.1 |
) |
|||
| Commercial Lease Financing |
|
(0.1 |
) |
|
(0.2 |
) |
|
(0.3 |
) |
|||
| Residential Mortgage |
|
4.9 |
|
|
(6.4 |
) |
|
(1.5 |
) |
|||
| Home Equity |
|
(1.5 |
) |
|
(3.3 |
) |
|
(4.8 |
) |
|||
| Automobile |
|
(0.1 |
) |
|
(0.3 |
) |
|
(0.4 |
) |
|||
| Other 2 |
|
(3.3 |
) |
|
(0.6 |
) |
|
(3.9 |
) |
|||
| Total Loans and Leases |
|
9.4 |
|
|
(25.1 |
) |
|
(15.7 |
) |
|||
| Other |
|
- |
|
|
0.1 |
|
|
0.1 |
|
|||
| Total Change in Interest Income |
|
27.6 |
|
|
(51.6 |
) |
|
(24.0 |
) |
|||
| Change in Interest Expense: | ||||||||||||
| Interest-Bearing Deposits | ||||||||||||
| Demand |
|
0.4 |
|
|
(0.6 |
) |
|
(0.2 |
) |
|||
| Savings |
|
0.9 |
|
|
(6.9 |
) |
|
(6.0 |
) |
|||
| Time |
|
(1.5 |
) |
|
(6.0 |
) |
|
(7.5 |
) |
|||
| Total Interest-Bearing Deposits |
|
(0.2 |
) |
|
(13.5 |
) |
|
(13.7 |
) |
|||
| Short-Term Borrowings |
|
(0.1 |
) |
|
(0.1 |
) |
|
(0.2 |
) |
|||
| Securities Sold Under Agreements to Repurchase |
|
(0.2 |
) |
|
(0.8 |
) |
|
(1.0 |
) |
|||
| Other Debt |
|
(0.3 |
) |
|
(0.1 |
) |
|
(0.4 |
) |
|||
| Total Change in Interest Expense |
|
(0.8 |
) |
|
(14.5 |
) |
|
(15.3 |
) |
|||
| Change in Net Interest Income | $ |
28.4 |
|
$ |
(37.1 |
) |
$ |
(8.7 |
) |
|||
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 | Six Months Ended | ||||||||||||||
| June 30, | March 31, | June 30, | June 30, | ||||||||||||
| (dollars in thousands) | 2021 |
2021 |
2020 |
2021 |
2020 |
||||||||||
| Salaries | $ |
33,413 |
$ |
31,569 |
$ |
32,739 |
$ |
64,982 |
$ |
66,225 |
|||||
| Incentive Compensation |
|
5,172 |
|
5,914 |
|
3,141 |
|
11,086 |
|
3,386 |
|||||
| Share-Based Compensation |
|
3,174 |
|
2,584 |
|
2,021 |
|
5,758 |
|
3,312 |
|||||
| Commission Expense |
|
2,599 |
|
2,436 |
|
1,647 |
|
5,035 |
|
3,021 |
|||||
| Retirement and Other Benefits |
|
5,289 |
|
5,517 |
|
4,446 |
|
10,806 |
|
9,152 |
|||||
| Payroll Taxes |
|
3,026 |
|
3,968 |
|
2,782 |
|
6,994 |
|
7,325 |
|||||
| Medical, Dental, and Life Insurance |
|
3,204 |
|
2,424 |
|
3,830 |
|
5,628 |
|
7,972 |
|||||
| Separation Expense |
|
284 |
|
1,839 |
|
109 |
|
2,123 |
|
4,785 |
|||||
| Total Salaries and Benefits | $ |
56,161 |
$ |
56,251 |
$ |
50,715 |
$ |
112,412 |
$ |
105,178 |
|||||
| Bank of Hawaii Corporation and Subsidiaries | |||||||||||||||
| Loan and Lease Portfolio Balances | Table 10 | ||||||||||||||
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|||||||
| (dollars in thousands) | 2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
||||||
| Commercial | |||||||||||||||
| Commercial and Industrial | $ |
1,257,305 |
$ |
1,288,496 |
$ |
1,357,610 |
$ |
1,376,843 |
$ |
1,428,481 |
|||||
| PPP 1 |
|
513,513 |
|
725,485 |
|
517,683 |
|
531,639 |
|
528,458 |
|||||
| Commercial Mortgage |
|
2,944,435 |
|
2,859,246 |
|
2,854,829 |
|
2,745,611 |
|
2,707,534 |
|||||
| Construction |
|
277,393 |
|
281,164 |
|
259,798 |
|
250,943 |
|
245,099 |
|||||
| Lease Financing |
|
110,500 |
|
104,980 |
|
110,766 |
|
111,831 |
|
113,187 |
|||||
| Total Commercial |
|
5,103,146 |
|
5,259,371 |
|
5,100,686 |
|
5,016,867 |
|
5,022,759 |
|||||
| Consumer | |||||||||||||||
| Residential Mortgage |
|
4,264,180 |
|
4,216,976 |
|
4,130,513 |
|
4,044,228 |
|
3,989,393 |
|||||
| Home Equity |
|
1,594,781 |
|
1,577,500 |
|
1,604,538 |
|
1,605,486 |
|
1,640,887 |
|||||
| Automobile |
|
714,729 |
|
710,407 |
|
708,800 |
|
709,937 |
|
700,702 |
|||||
| Other 2 |
|
364,542 |
|
376,449 |
|
395,483 |
|
417,090 |
|
451,629 |
|||||
| Total Consumer |
|
6,938,232 |
|
6,881,332 |
|
6,839,334 |
|
6,776,741 |
|
6,782,611 |
|||||
| Total Loans and Leases | $ |
12,041,378 |
$ |
12,140,703 |
$ |
11,940,020 |
$ |
11,793,608 |
$ |
11,805,370 |
|||||
| Deposits | |||||||||||||||
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|||||||||||
| (dollars in thousands) | 2021 |
2021 |
2020 |
2020 |
2020 |
||||||||||
| Consumer | $ |
9,848,285 |
$ |
9,746,713 |
$ |
9,347,725 |
$ |
8,903,808 |
$ |
8,766,885 |
|||||
| Commercial |
|
8,675,909 |
|
8,241,102 |
|
7,302,832 |
|
7,159,531 |
|
7,295,033 |
|||||
| Public and Other |
|
1,645,515 |
|
1,568,836 |
|
1,561,064 |
|
1,675,544 |
|
1,361,237 |
|||||
| Total Deposits | $ |
20,169,709 |
$ |
19,556,651 |
$ |
18,211,621 |
$ |
17,738,883 |
$ |
17,423,155 |
|||||
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 | |||||||||||||||||||
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
||||||||||||||||
| (dollars in thousands) | 2021 |
2021 |
2020 |
2020 |
2020 |
|||||||||||||||
| Non-Performing Assets | ||||||||||||||||||||
| Non-Accrual Loans and Leases | ||||||||||||||||||||
| Commercial | ||||||||||||||||||||
| Commercial and Industrial | $ |
258 |
|
$ |
293 |
|
$ |
441 |
|
$ |
475 |
|
$ |
459 |
|
|||||
| Commercial Mortgage |
|
8,413 |
|
|
8,503 |
|
|
8,527 |
|
|
8,615 |
|
|
8,672 |
|
|||||
| Total Commercial |
|
8,671 |
|
|
8,796 |
|
|
8,968 |
|
|
9,090 |
|
|
9,131 |
|
|||||
| Consumer | ||||||||||||||||||||
| Residential Mortgage |
|
2,437 |
|
|
1,804 |
|
|
3,223 |
|
|
3,543 |
|
|
5,888 |
|
|||||
| Home Equity |
|
5,534 |
|
|
4,951 |
|
|
3,958 |
|
|
3,661 |
|
|
5,176 |
|
|||||
| Total Consumer |
|
7,971 |
|
|
6,755 |
|
|
7,181 |
|
|
7,204 |
|
|
11,064 |
|
|||||
| Total Non-Accrual Loans and Leases |
|
16,642 |
|
|
15,551 |
|
|
16,149 |
|
|
16,294 |
|
|
20,195 |
|
|||||
| Foreclosed Real Estate |
|
2,332 |
|
|
2,332 |
|
|
2,332 |
|
|
2,332 |
|
|
2,506 |
|
|||||
| Total Non-Performing Assets | $ |
18,974 |
|
$ |
17,883 |
|
$ |
18,481 |
|
$ |
18,626 |
|
$ |
22,701 |
|
|||||
| Accruing Loans and Leases Past Due 90 Days or More | ||||||||||||||||||||
| Commercial | ||||||||||||||||||||
| Commercial and Industrial | $ |
- |
|
$ |
9 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
|||||
| Total Commercial |
|
- |
|
|
9 |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Consumer | ||||||||||||||||||||
| Residential Mortgage | $ |
4,069 |
|
$ |
4,069 |
|
$ |
5,274 |
|
$ |
6,607 |
|
$ |
4,937 |
|
|||||
| Home Equity |
|
4,498 |
|
|
4,906 |
|
|
3,187 |
|
|
2,571 |
|
|
3,519 |
|
|||||
| Automobile |
|
277 |
|
|
604 |
|
|
925 |
|
|
156 |
|
|
133 |
|
|||||
| Other 1 |
|
434 |
|
|
828 |
|
|
1,160 |
|
|
258 |
|
|
296 |
|
|||||
| Total Consumer |
|
9,278 |
|
|
10,407 |
|
|
10,546 |
|
|
9,592 |
|
|
8,885 |
|
|||||
| Total Accruing Loans and Leases Past Due 90 Days or More | $ |
9,278 |
|
$ |
10,416 |
|
$ |
10,546 |
|
$ |
9,592 |
|
$ |
8,885 |
|
|||||
| Restructured Loans on Accrual Status and Not Past Due 90 Days or More | $ |
74,926 |
|
$ |
74,216 |
|
$ |
68,065 |
|
$ |
58,650 |
|
$ |
59,713 |
|
|||||
| Total Loans and Leases | $ |
12,041,378 |
|
$ |
12,140,703 |
|
$ |
11,940,020 |
|
$ |
11,793,608 |
|
$ |
11,805,370 |
|
|||||
| Ratio of Non-Accrual Loans and Leases to Total Loans and Leases |
|
0.14 |
% |
|
0.13 |
% |
|
0.14 |
% |
|
0.14 |
% |
|
0.17 |
% |
|||||
| Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate |
|
0.16 |
% |
|
0.15 |
% |
|
0.15 |
% |
|
0.16 |
% |
|
0.19 |
% |
|||||
| Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate |
|
0.17 |
% |
|
0.17 |
% |
|
0.18 |
% |
|
0.18 |
% |
|
0.18 |
% |
|||||
| Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate |
|
0.15 |
% |
|
0.13 |
% |
|
0.14 |
% |
|
0.14 |
% |
|
0.20 |
% |
|||||
| 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 |
|
0.23 |
% |
|
0.23 |
% |
|
0.24 |
% |
|
0.24 |
% |
|
0.27 |
% |
|||||
| Quarter to Quarter Changes in Non-Performing Assets | ||||||||||||||||||||
| Balance at Beginning of Quarter | $ |
17,883 |
|
$ |
18,481 |
|
$ |
18,626 |
|
$ |
22,701 |
|
$ |
20,604 |
|
|||||
| Additions |
|
2,229 |
|
|
2,992 |
|
|
434 |
|
|
938 |
|
|
5,856 |
|
|||||
| Reductions | ||||||||||||||||||||
| Payments |
|
(722 |
) |
|
(2,481 |
) |
|
(490 |
) |
|
(3,729 |
) |
|
(2,736 |
) |
|||||
| Return to Accrual Status |
|
(416 |
) |
|
(1,014 |
) |
|
- |
|
|
(1,035 |
) |
|
(822 |
) |
|||||
| Sales of Foreclosed Real Estate |
|
- |
|
|
- |
|
|
- |
|
|
(175 |
) |
|
- |
|
|||||
| Charge-offs/Write-downs |
|
- |
|
|
(95 |
) |
|
(89 |
) |
|
(74 |
) |
|
(201 |
) |
|||||
| Total Reductions |
|
(1,138 |
) |
|
(3,590 |
) |
|
(579 |
) |
|
(5,013 |
) |
|
(3,759 |
) |
|||||
| Balance at End of Quarter | $ |
18,974 |
|
$ |
17,883 |
|
$ |
18,481 |
|
$ |
18,626 |
|
$ |
22,701 |
|
|||||
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 | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
| (dollars in thousands) | 2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||||
| Balance at Beginning of Period | $ |
203,779 |
|
$ |
221,303 |
|
$ |
141,467 |
|
$ |
221,303 |
|
|
116,849 |
|
|||||
| CECL Adoption (Day 1) Impact |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(5,072 |
) |
|||||
| Loans and Leases Charged-Off | ||||||||||||||||||||
| Commercial | ||||||||||||||||||||
| Commercial and Industrial |
|
(456 |
) |
|
(248 |
) |
|
(656 |
) |
|
(704 |
) |
|
(1,349 |
) |
|||||
| Consumer | ||||||||||||||||||||
| Residential Mortgage |
|
(115 |
) |
|
(4 |
) |
|
(64 |
) |
|
(119 |
) |
|
(84 |
) |
|||||
| Home Equity |
|
(107 |
) |
|
(16 |
) |
|
(273 |
) |
|
(123 |
) |
|
(273 |
) |
|||||
| Automobile |
|
(1,209 |
) |
|
(2,109 |
) |
|
(3,114 |
) |
|
(3,318 |
) |
|
(5,614 |
) |
|||||
| Other 1 |
|
(2,422 |
) |
|
(3,914 |
) |
|
(4,176 |
) |
|
(6,336 |
) |
|
(8,140 |
) |
|||||
| Total Loans and Leases Charged-Off |
|
(4,309 |
) |
|
(6,291 |
) |
|
(8,283 |
) |
|
(10,600 |
) |
|
(15,460 |
) |
|||||
| Recoveries on Loans and Leases Previously Charged-Off | ||||||||||||||||||||
| Commercial | ||||||||||||||||||||
| Commercial and Industrial |
|
144 |
|
|
112 |
|
|
1,524 |
|
|
256 |
|
|
1,813 |
|
|||||
| Commercial Mortgage |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
40 |
|
|||||
| Consumer | ||||||||||||||||||||
| Residential Mortgage |
|
481 |
|
|
955 |
|
|
118 |
|
|
1,436 |
|
|
381 |
|
|||||
| Home Equity |
|
527 |
|
|
533 |
|
|
321 |
|
|
1,060 |
|
|
1,297 |
|
|||||
| Automobile |
|
1,172 |
|
|
919 |
|
|
547 |
|
|
2,091 |
|
|
1,552 |
|
|||||
| Other 1 |
|
801 |
|
|
856 |
|
|
662 |
|
|
1,657 |
|
|
1,526 |
|
|||||
| Total Recoveries on Loans and Leases Previously Charged-Off |
|
3,125 |
|
|
3,375 |
|
|
3,172 |
|
|
6,500 |
|
|
6,609 |
|
|||||
| Net Charged-Off - Loans and Leases |
|
(1,184 |
) |
|
(2,916 |
) |
|
(5,111 |
) |
|
(4,100 |
) |
|
(8,851 |
) |
|||||
| Net Charged-Off - Accrued Interest Receivable |
|
(124 |
) |
|
(308 |
) |
|
- |
|
|
(432 |
) |
||||||||
| Provision for Credit Losses: | ||||||||||||||||||||
| Loans and Leases |
|
(16,774 |
) |
|
(14,993 |
) |
|
40,400 |
|
|
(31,767 |
) |
|
74,000 |
|
|||||
| Accrued Interest Receivable |
|
(828 |
) |
|
- |
|
|
- |
|
|
(828 |
) |
|
- |
|
|||||
| Unfunded Commitments |
|
1,502 |
|
|
693 |
|
|
(798 |
) |
|
2,195 |
|
|
(968 |
) |
|||||
| Balance at End of Period 2 | $ |
186,371 |
|
$ |
203,779 |
|
$ |
175,958 |
|
$ |
186,371 |
|
$ |
175,958 |
|
|||||
| Components | ||||||||||||||||||||
| Allowance for Credit Losses - Loans and Leases | $ |
180,385 |
|
|
198,343 |
|
|
173,439 |
|
$ |
180,385 |
|
|
173,439 |
|
|||||
| Allowance for Credit Losses - Accrued Interest Receivable |
|
1,440 |
|
|
2,392 |
|
|
- |
|
|
1,440 |
|
|
- |
|
|||||
| Reserve for Unfunded Commitments |
|
4,546 |
|
|
3,044 |
|
|
2,519 |
|
|
4,546 |
|
|
2,519 |
|
|||||
| Total Reserve for Credit Losses | $ |
186,371 |
|
$ |
203,779 |
|
$ |
175,958 |
|
$ |
186,371 |
|
$ |
175,958 |
|
|||||
| Average Loans and Leases Outstanding | $ |
12,096,308 |
|
$ |
11,952,587 |
|
$ |
11,727,649 |
|
$ |
12,024,844 |
|
$ |
11,394,178 |
|
|||||
| Ratio of Net Loans and Leases Charged-Off to | ||||||||||||||||||||
| Average Loans and Leases Outstanding (annualized) |
|
0.04 |
% |
|
0.10 |
% |
|
0.18 |
% |
|
0.07 |
% |
|
0.16 |
% |
|||||
| Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 3 |
|
1.50 |
% |
|
1.63 |
% |
|
1.47 |
% |
|
1.50 |
% |
|
1.47 |
% |
|||||
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 June 30, 2021 | ||||||||||||||||
| Net Interest Income | $ |
71,167 |
|
$ |
49,038 |
|
$ |
3,309 |
|
$ |
123,514 |
|
||||
| Provision for Credit Losses |
|
987 |
|
|
197 |
|
|
(17,284 |
) |
|
(16,100 |
) |
||||
| Net Interest Income After Provision for Credit Losses |
|
70,180 |
|
|
48,841 |
|
|
20,593 |
|
|
139,614 |
|
||||
| Noninterest Income |
|
32,600 |
|
|
6,575 |
|
|
5,256 |
|
|
44,431 |
|
||||
| Noninterest Expense |
|
(72,868 |
) |
|
(15,742 |
) |
|
(7,917 |
) |
|
(96,527 |
) |
||||
| Income Before Income Taxes |
|
29,912 |
|
|
39,674 |
|
|
17,932 |
|
|
87,518 |
|
||||
| Provision for Income Taxes |
|
(7,365 |
) |
|
(9,703 |
) |
|
(2,917 |
) |
|
(19,985 |
) |
||||
| Net Income | $ |
22,547 |
|
$ |
29,971 |
|
$ |
15,015 |
|
$ |
67,533 |
|
||||
| Total Assets as of June 30, 2021 | $ |
7,479,986 |
|
$ |
5,127,431 |
|
$ |
10,064,766 |
|
$ |
22,672,183 |
|
||||
| Three Months Ended June 30, 2020 1 | ||||||||||||||||
| Net Interest Income | $ |
73,221 |
|
$ |
51,219 |
|
$ |
2,251 |
|
$ |
126,691 |
|
||||
| Provision for Credit Losses |
|
6,137 |
|
|
(1,025 |
) |
|
35,288 |
|
|
40,400 |
|
||||
| Net Interest Income (Loss) After Provision for Credit Losses |
|
67,084 |
|
|
52,244 |
|
|
(33,037 |
) |
|
86,291 |
|
||||
| Noninterest Income |
|
28,943 |
|
|
7,076 |
|
|
15,249 |
|
|
51,268 |
|
||||
| Noninterest Expense |
|
(70,590 |
) |
|
(14,776 |
) |
|
(3,526 |
) |
|
(88,892 |
) |
||||
| Income (Loss) Before Income Taxes |
|
25,437 |
|
|
44,544 |
|
|
(21,314 |
) |
|
48,667 |
|
||||
| Provision for Income Taxes |
|
(6,492 |
) |
|
(10,940 |
) |
|
7,673 |
|
|
(9,759 |
) |
||||
| Net Income (Loss) | $ |
18,945 |
|
$ |
33,604 |
|
$ |
(13,641 |
) |
$ |
38,908 |
|
||||
| Total Assets as of June 30, 2020 1 | $ |
7,416,090 |
|
$ |
5,033,169 |
|
$ |
7,320,683 |
|
$ |
19,769,942 |
|
||||
1 |
Certain prior period information has been reclassified to conform to current presentation. |
| 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 | ||||||||||||
| Six Months Ended June 30, 2021 | ||||||||||||||||
| Net Interest Income | $ |
140,929 |
|
$ |
96,181 |
|
$ |
6,973 |
|
$ |
244,083 |
|
||||
| Provision for Credit Losses |
|
3,853 |
|
|
247 |
|
|
(34,500 |
) |
|
(30,400 |
) |
||||
| Net Interest Income After Provision for Credit Losses |
|
137,076 |
|
|
95,934 |
|
|
41,473 |
|
|
274,483 |
|
||||
| Noninterest Income |
|
66,298 |
|
|
14,433 |
|
|
6,670 |
|
|
87,401 |
|
||||
| Noninterest Expense |
|
(151,049 |
) |
|
(31,419 |
) |
|
(12,924 |
) |
|
(195,392 |
) |
||||
| Income Before Income Taxes |
|
52,325 |
|
|
78,948 |
|
|
35,219 |
|
|
166,492 |
|
||||
| Provision for Income Taxes |
|
(12,839 |
) |
|
(19,261 |
) |
|
(6,910 |
) |
|
(39,010 |
) |
||||
| Net Income | $ |
39,486 |
|
$ |
59,687 |
|
$ |
28,309 |
|
$ |
127,482 |
|
||||
| Total Assets as of June 30, 2021 | $ |
7,479,986 |
|
$ |
5,127,431 |
|
$ |
10,064,766 |
|
$ |
22,672,183 |
|
||||
| Six Months Ended June 30, 2020 1 | ||||||||||||||||
| Net Interest Income | $ |
147,135 |
|
$ |
96,456 |
|
$ |
9,066 |
|
$ |
252,657 |
|
||||
| Provision for Credit Losses |
|
9,588 |
|
|
(735 |
) |
|
65,147 |
|
|
74,000 |
|
||||
| Net Interest Income (Loss) After Provision for Credit Losses |
|
137,547 |
|
|
97,191 |
|
|
(56,081 |
) |
|
178,657 |
|
||||
| Noninterest Income |
|
61,533 |
|
|
18,811 |
|
|
17,073 |
|
|
97,417 |
|
||||
| Noninterest Expense |
|
(141,336 |
) |
|
(32,122 |
) |
|
(11,746 |
) |
|
(185,204 |
) |
||||
| Income (Loss) Before Income Taxes |
|
57,744 |
|
|
83,880 |
|
|
(50,754 |
) |
|
90,870 |
|
||||
| Provision for Income Taxes |
|
(14,608 |
) |
|
(20,494 |
) |
|
17,882 |
|
|
(17,220 |
) |
||||
| Net Income (Loss) | $ |
43,136 |
|
$ |
63,386 |
|
$ |
(32,872 |
) |
$ |
73,650 |
|
||||
| Total Assets as of June 30, 2020 1 | $ |
7,416,090 |
|
$ |
5,033,169 |
|
$ |
7,320,683 |
|
$ |
19,769,942 |
|
||||
1 |
Certain prior period information has been reclassified to conform to current presentation. | ||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||||||||||
| Selected Quarterly Financial Data | Table 14 | |||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
||||||||||||||||
| (dollars in thousands, except per share amounts) | 2021 |
2021 |
2020 |
2020 |
2020 |
|||||||||||||||
| Quarterly Operating Results | ||||||||||||||||||||
| Interest Income | ||||||||||||||||||||
| Interest and Fees on Loans and Leases | $ |
100,894 |
|
$ |
99,299 |
|
$ |
98,471 |
|
$ |
103,189 |
|
$ |
107,628 |
|
|||||
| Income on Investment Securities | ||||||||||||||||||||
| Available-for-Sale |
|
16,467 |
|
|
15,837 |
|
|
15,449 |
|
|
14,558 |
|
|
14,576 |
|
|||||
| Held-to-Maturity |
|
13,576 |
|
|
13,300 |
|
|
14,113 |
|
|
15,967 |
|
|
16,723 |
|
|||||
| Deposits |
|
- |
|
|
7 |
|
|
1 |
|
|
3 |
|
|
1 |
|
|||||
| Funds Sold |
|
260 |
|
|
137 |
|
|
115 |
|
|
149 |
|
|
92 |
|
|||||
| Other |
|
182 |
|
|
185 |
|
|
167 |
|
|
151 |
|
|
125 |
|
|||||
| Total Interest Income |
|
131,379 |
|
|
128,765 |
|
|
128,316 |
|
|
134,017 |
|
|
139,145 |
|
|||||
| Interest Expense | ||||||||||||||||||||
| Deposits |
|
4,152 |
|
|
4,329 |
|
|
4,861 |
|
|
5,891 |
|
|
7,954 |
|
|||||
| Securities Sold Under Agreements to Repurchase |
|
3,470 |
|
|
3,533 |
|
|
3,614 |
|
|
3,622 |
|
|
4,020 |
|
|||||
| Funds Purchased |
|
- |
|
|
1 |
|
|
5 |
|
|
- |
|
|
18 |
|
|||||
| Short-Term Borrowings |
|
- |
|
|
- |
|
|
- |
|
|
1 |
|
|
22 |
|
|||||
| Other Debt |
|
243 |
|
|
333 |
|
|
337 |
|
|
337 |
|
|
440 |
|
|||||
| Total Interest Expense |
|
7,865 |
|
|
8,196 |
|
|
8,817 |
|
|
9,851 |
|
|
12,454 |
|
|||||
| Net Interest Income |
|
123,514 |
|
|
120,569 |
|
|
119,499 |
|
|
124,166 |
|
|
126,691 |
|
|||||
| Provision for Credit Losses |
|
(16,100 |
) |
|
(14,300 |
) |
|
15,200 |
|
|
28,600 |
|
|
40,400 |
|
|||||
| Net Interest Income After Provision for Credit Losses |
|
139,614 |
|
|
134,869 |
|
|
104,299 |
|
|
95,566 |
|
|
86,291 |
|
|||||
| Noninterest Income | ||||||||||||||||||||
| Trust and Asset Management |
|
11,682 |
|
|
11,278 |
|
|
11,239 |
|
|
10,752 |
|
|
10,550 |
|
|||||
| Mortgage Banking |
|
3,058 |
|
|
5,862 |
|
|
6,851 |
|
|
4,047 |
|
|
4,278 |
|
|||||
| Service Charges on Deposit Accounts |
|
6,065 |
|
|
6,128 |
|
|
6,335 |
|
|
6,027 |
|
|
5,097 |
|
|||||
| Fees, Exchange, and Other Service Charges |
|
13,807 |
|
|
13,607 |
|
|
12,143 |
|
|
12,296 |
|
|
9,417 |
|
|||||
| Investment Securities Gains (Losses), Net |
|
2,423 |
|
|
(1,203 |
) |
|
(1,193 |
) |
|
(1,121 |
) |
|
13,216 |
|
|||||
| Annuity and Insurance |
|
911 |
|
|
702 |
|
|
670 |
|
|
881 |
|
|
883 |
|
|||||
| Bank-Owned Life Insurance |
|
2,063 |
|
|
1,917 |
|
|
2,353 |
|
|
1,806 |
|
|
1,649 |
|
|||||
| Other |
|
4,422 |
|
|
4,679 |
|
|
6,860 |
|
|
7,046 |
|
|
6,178 |
|
|||||
| Total Noninterest Income |
|
44,431 |
|
|
42,970 |
|
|
45,258 |
|
|
41,734 |
|
|
51,268 |
|
|||||
| Noninterest Expense | ||||||||||||||||||||
| Salaries and Benefits |
|
56,161 |
|
|
56,251 |
|
|
50,200 |
|
|
51,951 |
|
|
50,715 |
|
|||||
| Net Occupancy |
|
5,047 |
|
|
9,090 |
|
|
14,536 |
|
|
7,281 |
|
|
8,761 |
|
|||||
| Net Equipment |
|
8,796 |
|
|
8,878 |
|
|
9,574 |
|
|
9,223 |
|
|
8,195 |
|
|||||
| Data Processing |
|
4,557 |
|
|
6,322 |
|
|
4,604 |
|
|
4,691 |
|
|
4,416 |
|
|||||
| Professional Fees |
|
3,114 |
|
|
3,406 |
|
|
3,174 |
|
|
2,743 |
|
|
3,061 |
|
|||||
| FDIC Insurance |
|
1,669 |
|
|
1,654 |
|
|
1,484 |
|
|
1,282 |
|
|
1,558 |
|
|||||
| Other |
|
17,183 |
|
|
13,264 |
|
|
15,082 |
|
|
12,778 |
|
|
12,186 |
|
|||||
| Total Noninterest Expense |
|
96,527 |
|
|
98,865 |
|
|
98,654 |
|
|
89,949 |
|
|
88,892 |
|
|||||
| Income Before Provision for Income Taxes |
|
87,518 |
|
|
78,974 |
|
|
50,903 |
|
|
47,351 |
|
|
48,667 |
|
|||||
| Provision for Income Taxes |
|
19,985 |
|
|
19,025 |
|
|
8,589 |
|
|
9,511 |
|
|
9,759 |
|
|||||
| Net Income | $ |
67,533 |
|
$ |
59,949 |
|
$ |
42,314 |
|
$ |
37,840 |
|
$ |
38,908 |
|
|||||
| Basic Earnings Per Common Share | $ |
1.69 |
|
$ |
1.51 |
|
$ |
1.06 |
|
$ |
0.95 |
|
$ |
0.98 |
|
|||||
| Diluted Earnings Per Common Share | $ |
1.68 |
|
$ |
1.50 |
|
$ |
1.06 |
|
$ |
0.95 |
|
$ |
0.98 |
|
|||||
| Balance Sheet Totals | ||||||||||||||||||||
| Loans and Leases | $ |
12,041,378 |
|
$ |
12,140,703 |
|
$ |
11,940,020 |
|
$ |
11,793,608 |
|
$ |
11,805,370 |
|
|||||
| Total Assets |
|
22,672,183 |
|
|
21,947,271 |
|
|
20,603,651 |
|
|
20,109,489 |
|
|
19,769,942 |
|
|||||
| Total Deposits |
|
20,169,709 |
|
|
19,556,651 |
|
|
18,211,621 |
|
|
17,738,883 |
|
|
17,423,155 |
|
|||||
| Total Shareholders' Equity |
|
1,583,531 |
|
|
1,360,221 |
|
|
1,374,507 |
|
|
1,361,739 |
|
|
1,352,082 |
|
|||||
| Performance Ratios | ||||||||||||||||||||
| Return on Average Assets |
|
1.23 |
% |
|
1.15 |
% |
|
0.83 |
% |
|
0.76 |
% |
|
0.82 |
% |
|||||
| Return on Average Shareholders' Equity |
|
19.17 |
|
|
17.65 |
|
|
12.26 |
|
|
11.01 |
|
|
11.58 |
|
|||||
| Return on Average Common Equity |
|
19.60 |
|
|
17.65 |
|
|
12.26 |
|
|
11.01 |
|
|
11.58 |
|
|||||
| Efficiency Ratio 1 |
|
57.47 |
|
|
60.45 |
|
|
59.88 |
|
|
54.22 |
|
|
49.95 |
|
|||||
| Net Interest Margin 2 |
|
2.37 |
|
|
2.43 |
|
|
2.48 |
|
|
2.67 |
|
|
2.83 |
|
|||||
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 | |||||||||||||||||||
| Five Months Ended | Year Ended | |||||||||||||||||||
| ($ in millions; jobs in thousands) | May 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||||||||||
| Hawaii Economic Trends | ||||||||||||||||||||
| State General Fund Revenues 1 | $ |
3,290.3 |
22.4 |
% |
$ |
6,415.1 |
|
(12.3 |
)% |
$ |
7,316.5 |
|
5.5 |
% |
||||||
| General Excise and Use Tax Revenue 1 | $ |
1,395.8 |
(2.3 |
)% |
$ |
3,038.8 |
|
(15.6 |
)% |
$ |
3,602.2 |
|
5.1 |
% |
||||||
| Jobs 2 |
|
596.5 |
|
588.2 |
|
|
659.7 |
|
||||||||||||
| June 30, | December 31, | |||||||||||||||||||
| (spot rates) | 2021 |
2020 |
2019 |
|||||||||||||||||
| Unemployment, seasonally adjusted 3 | ||||||||||||||||||||
| Statewide | 7.7 |
% |
|
10.3 |
% |
2.1 |
% |
|||||||||||||
| Oahu | 6.7 |
|
|
9.3 |
|
2.0 |
|
|||||||||||||
| Island of Hawaii | 7.5 |
|
|
10.1 |
|
2.5 |
|
|||||||||||||
| Maui | 10.2 |
|
|
14.3 |
|
2.0 |
|
|||||||||||||
| Kauai | 10.8 |
|
|
13.9 |
|
2.1 |
|
|||||||||||||
| June 30, | December 31, | |||||||||||||||||||
| (percentage change, except months of inventory) | 2021 |
2020 |
2019 |
2018 |
||||||||||||||||
| Housing Trends (Single Family Oahu) 4 | ||||||||||||||||||||
| Median Home Price |
|
21.0 |
% |
5.2 |
% |
|
(0.1 |
)% |
4.6 |
% |
||||||||||
| Home Sales Volume (units) |
|
32.9 |
% |
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 | ||||||||||||||||||||
| 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 |
