Bank of Hawaii Corporation First Quarter 2003 Financial Results
HONOLULU, Apr 28, 2003 (BUSINESS WIRE) -- Bank of Hawaii Corporation (NYSE:BOH):
- Diluted Earnings Per Share Increases to $0.47
- Net Income of $29.8 Million for the Quarter
- Board of Directors Declares Dividend of $0.19 Per Share
Bank of Hawaii Corporation (NYSE:BOH) today reported diluted earnings per share of $0.47 for the first quarter of 2003, up from diluted earnings per share of $0.44 in the fourth quarter of 2002 and up from $0.41 in the comparable quarter last year. Net income for the first quarter was $29.8 million, up from $28.9 million in the previous quarter and down slightly from $31.1 million reported in the same quarter last year.
The return on average assets for the first quarter of 2003 was 1.31 percent, up from 1.20 percent in the fourth quarter of 2002 and up from 1.21 percent in the first quarter of 2002. The return on average equity was 12.42 percent in the first quarter, up from 10.72 percent in the previous quarter and a significant improvement from 9.97 percent in the same quarter last year.
"We are encouraged by the first quarter results for 2003," said Michael E. O'Neill, Chairman and CEO. "Despite weak financial market conditions, our net interest income and margin are up, credit losses and other credit quality indicators have improved, and our expenses are coming down. We are pleased to see growth in both loans and deposits. The Hawaii economy has held up well in the face of uncertainty. Our system conversion is on schedule and on budget, and we are looking forward to the benefits it will create for both our customers and our shareholders."
Net income in the first quarter of 2003 included charges of $7.4 million related to the information technology systems replacement project. Included in the fourth quarter of 2002 were charges of $7.0 million related to the information technology systems replacement project and $0.4 million in net restructuring expenses related to the divestiture program. Non-core items in the first quarter of 2002 included net restructuring expenses of $2.0 million.
Financial Highlights
Net interest income for the first quarter of 2003 on a fully taxable equivalent basis was $91.0 million, up $0.8 million from the fourth quarter of 2002, primarily due to increased loan volumes and a reduction in rates on deposits and borrowings. An analysis of the change in net interest income is included in Table 6. Net interest income was down $3.9 million from the first quarter of 2002 primarily due to lower interest rates.
The net interest margin was 4.29 percent for the first quarter of 2003, a 24 basis point increase from 4.05 percent in the previous quarter and a 37 basis point increase from 3.92 percent in the same quarter last year. The significant improvement in the net interest margin was largely due to lengthening the maturities of certain short-term investments, an improved earning asset mix, and reductions in short-term borrowings and time deposits, as well as debt repurchases in 2002, which lowered the Company's cost of funds.
Bank of Hawaii Corporation's credit quality continued to improve during the first quarter of 2003. As a result, the Company did not recognize a provision for loan and lease losses during the quarter. The allowance for loan and lease losses was reduced by $2.8 million from December 31, 2002, which equaled the amount of net charge-offs for the quarter. The Company did not recognize a provision for loan and lease losses during the fourth quarter of 2002. The provision for loan and lease losses was $8.3 million in the first quarter of 2002, which equaled net charge-offs for that quarter.
Non-interest income was $44.8 million for the quarter compared to non-interest income of $50.4 million in the fourth quarter of 2002 and $53.0 million in the first quarter of 2002. The decrease was largely due to a reduction in gains on sales of mortgage loans resulting from the decision at the end of 2002 to hold the majority of first quarter 2003 mortgage loan originations in the portfolio rather than selling them in the secondary market. The decrease in sales gains offset growth in other non-interest revenue, including tax preparation fees, service charges on deposits and other service fee income.
Non-interest expense for the first quarter of 2003 was $90.2 million, including the previously mentioned $7.4 million in information technology system replacement costs. Non-interest expense for the fourth quarter of 2002 also included a combined $7.4 million in information technology system replacement and net restructuring costs, as discussed above. By comparison, non-interest expense in the first quarter of 2002 included net restructuring costs of $2.0 million. Excluding these items, non-interest expense was $82.8 million in the first quarter of 2003, a decrease of $6.5 million, or 7.3 percent, compared to the previous quarter and a decrease of $6.7 million, or 7.4 percent, from the same quarter last year.
The efficiency ratio was 66.4 percent for the first quarter of 2003. Excluding systems replacement project costs and non-core items, the efficiency ratio was 61.0 percent in the first quarter, compared to 63.5 percent in the previous quarter and 60.5 percent in the same quarter last year.
The Company's business segments are defined as Retail Banking, Commercial Banking, Investment Services Group, and Treasury and Other Corporate. Business segment results are determined based on the Company's internal financial management reporting process and organizational structure. Business segment performance details are summarized in Table 11.
Asset Quality
Bank of Hawaii Corporation's credit quality reflected continued improvement in the first quarter of 2003. Non-performing assets were $44.2 million at the end of the quarter, a decrease of $10.2 million, or 18.8 percent, from non-performing assets of $54.4 million at the end of the fourth quarter. Compared to the same period last year, non-performing assets declined $46.5 million, or 51.3 percent. At March 31, 2003 the ratio of non-performing assets to total loans plus foreclosed assets and non-performing loans held for sale was 0.79 percent down from 1.01 percent at December 31, 2002 and down from 1.61 percent at March 31, 2002.
Non-accrual loans were $35.1 million at March 31, 2003, a reduction of $9.9 million, or 22.0 percent, from $45.0 million at December 31, 2002 and down $28.6 million, or 44.9 percent, from $63.7 million at March 31, 2002. Non-accrual loans as a percentage of total loans were 0.63 percent at March 31, 2003 down from 0.84 percent at the end of the previous quarter and down from 1.14 percent at the end of the comparable quarter last year.
Net charge-offs for the first quarter of 2003 were $2.8 million, or 0.21 percent (annualized) of total average loans. Charge-offs during the quarter of $6.1 million were partially offset by recoveries of $3.3 million. Net charge-offs in the fourth quarter of 2002 were $11.6 million, or 0.88 percent (annualized) of total average loans. Net charge-offs during the first quarter of 2002 were $8.3 million, or 0.60 percent (annualized) of total average loans.
The allowance for loan and lease losses was $140.0 million at March 31, 2003. The ratio of the allowance for loan and lease losses to total loans was 2.52 percent at March 31, 2003 compared with 2.67 percent at December 31, 2002 and 2.84 percent at the end of the same quarter last year.
Concentrations of credit exposure to selected components of the portfolio are summarized in Table 7.
Other Financial Highlights
Total assets were $9.4 billion at the end of March 31, 2003, down slightly from $9.5 billion at the end of December 31, 2002 and down from $10.2 billion at the end of March 31, 2002. The decrease of $106 million from the previous quarter was largely due to reductions in short-term investments. Partially offsetting the decrease in short-term investments was growth in loans, which increased $206 million from December 31, 2002. Compared to the previous year, the decrease in total assets was largely due to reductions in short-term investments as excess liquidity was utilized for share repurchases and debt reduction.
Total deposits at March 31, 2003 were $7.0 billion, up $67 million from December 31, 2002 and up $444 million from March 31, 2002 as growth in demand and savings deposits continued to offset managed decreases in time and foreign deposits. During the first quarter of 2003 the number of checking and savings accounts increased in response to deposit promotions and other initiatives. Offsetting the deposit growth were decreases in short-term borrowings, which reflected the lower funding needs of the Company.
During the first quarter of 2003, Bank of Hawaii Corporation repurchased 2.9 million shares of common stock at a total cost of $86.3 million under the share repurchase program. The average cost per share was $30.22 during the quarter. From the beginning of the program through March 31, 2003, the Company had repurchased a total of 23.0 million shares and returned a total of $614.2 million to the shareholder at an average cost of $26.71 per share. Through April 25, 2003, the Company repurchased an additional 0.14 million shares of common stock at a cost of $31.87 per share. Remaining buyback authority was $181.3 million at April 25, 2003.
The Company's capital and liquidity remained exceptionally strong during the first quarter of 2003. At March 31, 2003 the Tier 1 leverage ratio was 10.03 percent compared to 10.34 percent at December 31, 2002 and 12.64 percent at March 31, 2002.
The Company's Board of Directors declared a quarterly cash dividend of $0.19 per share on the Company's outstanding shares. The dividend will be payable on June 13, 2003 to shareholders of record at the close of business on May 23, 2003.
Information Technology Systems Replacement Project
Bank of Hawaii Corporation signed an agreement with Metavante Corporation in July 2002 to serve as the Company's primary technology systems provider. The seven-year outsourcing arrangement remains on schedule to be operational in the third quarter of 2003 and is expected to provide annual cost savings of over $17 million compared to 2002 expense levels. In connection with this project, the Company estimates that it will recognize transition charges of approximately $35 million over the five-quarter conversion period that began in the third quarter of 2002. During the first quarter of 2003, $7.4 million in transition costs were incurred, bringing the total project-to-date cost to $21.0 million. System conversion costs are estimated to be approximately $10.2 million in the second quarter of 2003. Additional details on this project may be found in Table 10.
Economic Outlook
The Hawaii economy remained relatively strong during the first quarter of 2003 and is forecast to remain healthy during the remainder of the year. The construction and real estate investment sectors continue to lead the Hawaii economy. Tourism, as measured by passenger arrivals, was up 4.1 percent in the first quarter of 2003 compared to the same quarter last year. The recent conflict in Iraq had minimal effects on Hawaii tourism. Unemployment in Hawaii declined to 3.0 percent during the quarter, about half the national unemployment level. Job growth in the state is projected to be approximately 2.0 percent for 2003 and real income is forecast to grow about 3.0 percent. Inflation expectations remain relatively low at 1.5 percent. For more economic information, visit the Company's web site http://www.boh.com/econ/.
Earnings Outlook
The Company's previously published earnings guidance of $131 million in net income for the full year of 2003 remains unchanged. Based on current conditions, the Company does not expect to record a provision for loan losses in 2003. However, the actual amount of the provision for loan losses will depend on determinations of credit risk that will be made near the end of each quarter. Earnings per share and return on equity projections continue to be dependent upon the terms and timing of share repurchases.
Conference Call Information
The Company will review its first quarter 2003 financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The presentation will be accessible via teleconference and via the investor relations link of Bank of Hawaii Corporation's web site, www.boh.com. The conference call number is (800) 915-4836 in the U.S. or (973) 317-5319 for international callers. A replay will be available for one week beginning at 9:00 a.m. Hawaii Time (3:00 p.m. Eastern Time) on Monday, April 28, 2003 by calling (800) 428-6051 in the U.S or (973) 709-2089 for international and entering the number 273138 when prompted. A replay of the presentation will be also available on the Company's web site.
Bank of Hawaii Corporation is a 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 and is the largest independent financial institution in Hawaii. For more information about Bank of Hawaii Corporation, see the Company's web site, www.boh.com.
This news release contains forward-looking statements concerning the expected efficiency ratio, expected level of loan loss provisioning, anticipated costs and annual savings of our technology systems replacement project, and anticipated revenues and expenses in 2003 and beyond. We believe the assumptions underlying our forward-looking statements are reasonable. However, any of the assumptions could prove to be inaccurate and actual results may differ materially from those projected for a variety of reasons, including, but not limited to: 1) unanticipated changes in business and economic conditions, the competitive environment, fiscal and monetary policies, or legislation in Hawaii and the other markets we serve; 2) changes in our credit quality or risk profile which may increase or decrease the required level of allowance for loan and lease losses; 3) changes in market interest rates may deteriorate our credit markets and ability to maintain our net interest margin; 4) changes to the amount and timing of our proposed equity repurchases; 5) inability to achieve expected benefits of our technology outsourcing project and other business process changes due to adverse changes in implementation processes or costs, operational savings, or timing; 6) actions by the United States military and real or threatened terrorist activity affecting business conditions; and 7) adverse weather and other natural conditions impacting our and customers' operations. We do not undertake any obligation to update any forward-looking statements to reflect later events or circumstances.
Bank of Hawaii Corporation and Subsidiaries Highlights (Unaudited) Table 1 ---------------------------------------------------------------------- (dollars in thousands except per share amounts) Three Months Ended March 31, March 31, Earnings Highlights and Performance Ratios 2003 2002 (1) --------------------------------------------- ------------------------ Net Income $29,801 $31,056 Basic Earnings Per Share 0.49 0.42 Diluted Earnings Per Share 0.47 0.41 Cash Dividends 11,562 13,177 Return on Average Assets 1.31% 1.21% Return on Average Equity 12.42% 9.97% Net Interest Margin 4.29% 3.92% Efficiency Ratio 66.44% 61.81% Efficiency Ratio excluding ITSRP and Restructuring Costs 60.98% 60.47% ---------------------------------------------------------------------- Statement of Condition Highlights and March 31, March 31, Performance Ratios 2003 2002 (1) --------------------------------------------- ------------------------ Total Assets $9,410,210 $10,245,021 Net Loans 5,425,343 5,442,601 Total Deposits 6,987,331 6,543,781 Total Shareholders' Equity 952,007 1,265,907 Book Value Per Common Share $15.76 $17.24 Allowance / Loans Outstanding 2.52% 2.84% Average Equity / Average Assets 10.53% 12.13% Employees (FTE) 2,891 3,082 Branches and offices 91 104 Market Price Per Share of Common Stock for the Quarter Ended: Closing $30.80 $26.06 High $31.50 $27.79 Low $29.25 $23.79 (1) Certain 2002 information has been reclassified to conform to 2003 presentation. Bank of Hawaii Corporation and Subsidiaries Consolidated Statements of Income (Unaudited) Table 2 ---------------------------------------------------------------------- Three Months Ended (1) March 31, March 31, (dollars in thousands except per share amounts) 2003 2002 ---------------------------------------------------------------------- Interest Income Interest and Fees on Loan and Leases $85,773 $98,645 Income on Investment Securities - Held to Maturity 2,283 5,145 Income on Investment Securities - Available for Sale 22,463 27,193 Deposits 1,307 5,047 Funds Sold and Security Resale Agreements 764 1,003 Other 1,189 1,332 ---------------------------------------------------------------------- Total Interest Income 113,779 138,365 Interest Expense Deposits 14,447 23,978 Security Repurchase Agreements 2,242 10,293 Funds Purchased 205 231 Short-Term Borrowings 24 649 Long-Term Debt 5,861 8,319 ---------------------------------------------------------------------- Total Interest Expense 22,779 43,470 ---------------------------------------------------------------------- Net Interest Income 91,000 94,895 Provision for Loan and Lease Losses - 8,292 ---------------------------------------------------------------------- Net Interest Income After Provision for Loan and Lease Losses 91,000 86,603 Non-Interest Income Trust and Asset Management 13,190 14,818 Mortgage Banking 283 7,957 Service Charges on Deposit Accounts 8,950 8,410 Fees, Exchange, and Other Service Charges 12,980 12,452 Investment Securities Gains 583 - Insurance 2,982 2,599 Other 5,785 6,789 ---------------------------------------------------------------------- Total Non-Interest Income 44,753 53,025 Non-Interest Expense Salaries 36,459 39,187 Pensions and Other Employee Benefits 9,970 9,996 Net Occupancy Expense 9,613 9,593 Net Equipment Expense 9,748 10,121 Restructuring and Other Related Costs - 1,979 Information Technology Systems Replacement Project 7,417 - Other 16,993 20,547 ---------------------------------------------------------------------- Total Non-Interest Expense 90,200 91,423 ---------------------------------------------------------------------- Income Before Income Taxes 45,553 48,205 Provision for Income Taxes 15,752 17,149 ---------------------------------------------------------------------- Net Income $29,801 $31,056 ====================================================================== Basic Earnings Per Share $0.49 $0.42 Diluted Earnings Per Share $0.47 $0.41 Dividends Per Share $0.19 $0.18 Basic Weighted Average Shares 61,294,460 73,312,573 Diluted Weighted Average Shares 63,535,609 75,199,181 ====================================================================== (1) Certain 2002 information has been reclassified to conform to 2003 presentation. Bank of Hawaii Corporation and Subsidiaries Consolidated Statements of Condition (Unaudited) Table 3 ---------------------------------------------------------------------- March 31, Dec. 31, March 31, (dollars in thousands) 2003 2002 2002 (1) ---------------------------------------------------------------------- Assets Interest-Bearing Deposits $157,067 $549,978 $1,347,611 Investment Securities - Held to Maturity (Market Value of $180,043, $236,016 and $354,187, respectively) 175,600 229,720 344,723 Investment Securities - Available for Sale 2,497,508 2,287,201 1,980,378 Funds Sold 175,000 195,000 135,000 Loans Held for Sale 47,269 40,118 99,773 Loans 5,565,371 5,359,004 5,601,580 Allowance for Loan and Lease Losses (140,028) (142,853) (158,979) ---------------------------------------------------------------------- Net Loans 5,425,343 5,216,151 5,442,601 ---------------------------------------------------------------------- Total Earning Assets 8,477,787 8,518,168 9,350,086 Cash and Non-Interest Bearing Deposits 331,994 374,352 248,307 Premises and Equipment 170,696 176,969 192,291 Customers' Acceptance Liability 1,372 2,680 1,007 Accrued Interest Receivable 36,845 36,722 40,940 Foreclosed Real Estate 9,097 9,434 19,181 Mortgage Servicing Rights 25,801 28,820 30,501 Goodwill 36,216 36,216 36,216 Other Assets 320,402 333,057 326,492 ---------------------------------------------------------------------- Total Assets $9,410,210 $9,516,418 $10,245,021 ====================================================================== Liabilities Domestic Deposits Non-Interest Bearing Demand $1,714,601 $1,719,633 $1,592,955 Interest Bearing Demand 1,162,202 1,169,128 933,801 Savings 2,669,409 2,535,219 2,089,257 Time 1,416,860 1,461,780 1,807,015 Foreign Deposits Time Due to Banks 276 1,130 42,261 Other Savings and Time 23,983 33,271 78,492 ---------------------------------------------------------------------- Total Deposits 6,987,331 6,920,161 6,543,781 Securities Sold Under Agreements to Repurchase 646,317 735,621 1,544,718 Funds Purchased 69,890 64,467 43,485 Current Maturities of Long-Term Debt 118,792 114,781 64,975 Short-Term Borrowings 12,096 33,420 20,644 Banker's Acceptances Outstanding 1,372 2,680 1,007 Retirement Benefits Payable 62,091 61,385 37,055 Accrued Interest Payable 12,761 13,731 27,983 Taxes Payable 206,139 196,813 146,360 Other Liabilities 70,644 82,596 84,874 Long-Term Debt 270,770 275,004 464,232 ---------------------------------------------------------------------- Total Liabilities 8,458,203 8,500,659 8,979,114 Shareholders' Equity Common Stock ($.01 par value); authorized 500,000,000 shares; issued / outstanding: March 2003 - 81,276,420 / 60,418,539; December 2002 - 81,294,730 / 63,015,442; March 2002 - 81,346,027 / 73,409,966 807 806 806 Capital Surplus 372,887 372,192 369,541 Accumulated Other Comprehensive Income 8,273 11,659 20,389 Retained Earnings 1,133,642 1,115,910 1,065,706 Deferred Stock Grants 74 (1,424) (4,933) Treasury Stock, at Cost (Shares: March 2003 - 20,857,881; December 2002 - 18,279,288; March 2002 - 7,936,061) (563,676) (483,384) (185,602) ---------------------------------------------------------------------- Total Shareholders' Equity 952,007 1,015,759 1,265,907 ---------------------------------------------------------------------- Total Liabilities and Shareholders' Equity $9,410,210 $9,516,418 $10,245,021 ====================================================================== (1) Certain 2002 information has been reclassified to conform to 2003 presentation. Bank of Hawaii Corporation and Subsidiaries Consolidated Statements of Shareholders' Equity (Unaudited) Table 4 ---------------------------------------------------------------------- Accum. Other Compre- Common Capital hensive (dollars in thousands) Total Stock Surplus Income ---------------------------------------------------------------------- Balance at December 31, 2002 $1,015,759 $806 $372,192 $11,659 Comprehensive Income Net Income 29,801 - - - Other Comprehensive Income, Net of Tax Unrealized Gain on Investment Securities (3,386) - - (3,386) Total Comprehensive Income Common Stock Issued 9,930 Profit Sharing Plan 216 - - - 245,213 Stock Option Plan 5,834 - 1,083 - 24,969 Dividend Reinvestment Plan 543 - - - 690 Directors' Restricted Shares and Deferred Compensation Plan (6) 1 20 - (19,000)Employees' Restricted Shares 1,134 - (408) - Treasury Stock Purchased (2,856,600 shares) (86,326) - - - Cash Dividends Paid (11,562) - - - ---------------------------------------------------------------------- Balance at March 31, 2003 $952,007 $807 $372,887 $8,273 ====================================================================== Deferred Compre- Retained Stock Treasury hensive (dollars in thousands) Earnings Grants Stock Income ---------------------------------------------------------------------- Balance at December 31, 2002 $1,115,910 $(1,424)$(483,384) Comprehensive Income Net Income 29,801 - - $29,801 Other Comprehensive Income, Net of Tax Unrealized Gain on Investment Securities - - - (3,386) -------- Total Comprehensive Income $26,415 ======== Common Stock Issued 9,930 Profit Sharing Plan - - 216 245,213 Stock Option Plan (507) (44) 5,302 24,969 Dividend Reinvestment Plan - - 543 690 Directors' Restricted Shares and Deferred Compensation Plan - - (27) (19,000)Employees' Restricted Shares - 1,542 - Treasury Stock Purchased (2,856,600 shares) - - (86,326) Cash Dividends Paid (11,562) - - -------------------------------------------------------------- Balance at March 31, 2003 $1,133,642 $74 $(563,676) ============================================================== Accum. Other Compre- Common Capital hensive (dollars in thousands) Total Stock Surplus Income ---------------------------------------------------------------------- Balance at December 31, 2001 $1,247,012 $806 $367,672 $22,761 Comprehensive Income Net Income 31,056 - - - Other Comprehensive Income, Net of Tax Unrealized Gain on Investment Securities (1,913) - - (1,913) Foreign Currency Translation Adjustment (459) - - (459) Total Comprehensive Income Common Stock Issued 12,113 Profit Sharing Plan 325 - 37 - 884,893 Stock Option Plan 18,237 - 2,455 - 27,454 Dividend Reinvestment Plan 731 - 77 - (114)Directors' Restricted Shares and Deferred Compensation Plan (16) - (1) - (31,100)Employees' Restricted Shares 1,259 - (699) - Treasury Stock Purchased (701,000 shares) (17,148) - - - Cash Dividends Paid (13,177) - - - ---------------------------------------------------------------------- Balance at March 31, 2002 $1,265,907 $806 $369,541 $20,389 ====================================================================== Deferred Compre- Retained Stock Treasury hensive (dollars in thousands) Earnings Grants Stock Income ---------------------------------------------------------------------- Balance at December 31, 2001 $1,055,424 $(7,637)$(192,014) Comprehensive Income Net Income 31,056 - - $31,056 Other Comprehensive Income, Net of Tax Unrealized Gain on Investment Securities - - - (1,913) Foreign Currency Translation Adjustment - - - (459) -------- Total Comprehensive Income $28,684 ======== Common Stock Issued 12,113 Profit Sharing Plan - - 288 884,893 Stock Option Plan (7,595) 746 22,631 27,454 Dividend Reinvestment Plan (2) - 656 (114)Directors' Restricted Shares and Deferred Compensation Plan - - (15) (31,100)Employees' Restricted Shares - 1,958 - Treasury Stock Purchased (701,000 shares) - - (17,148) Cash Dividends Paid (13,177) - - -------------------------------------------------------------- Balance at March 31, 2002 $1,065,706 $(4,933)$(185,602) ============================================================== Bank of Hawaii Corporation and Subsidiaries Consolidated Average Balances and Interest Rates - Taxable Equivalent Basis (Unaudited) Table 5 ---------------------------------------------------------------------- Three Months Ended March 31, 2003 Average Income/ Yield/ (dollars in millions) Balance Expense Rate ---------------------------------------------------------------------- Earning Assets Interest Bearing Deposits $253.8 $1.3 2.09% Funds Sold 250.5 0.8 1.22 Investment Securities - Held-to-Maturity 202.0 2.3 4.61 - Available for Sale 2,268.1 22.5 3.96 Loans Held for Sale 10.1 0.1 5.16 Net Loans and Lease Financing Domestic - Commercial and Industrial 871.7 10.7 4.96 - Construction 115.4 1.4 5.08 - Commercial Mortgage 597.8 9.0 6.14 - Residential Mortgage 2,249.0 37.7 6.70 - Installment 501.9 12.6 10.21 - Home Equity 434.5 5.7 5.28 - Purchased Home Equity 180.2 2.6 5.78 - Lease Financing 495.6 5.9 4.81 ---------------------------------------------------------------------- Total Domestic Loans 5,446.1 85.6 6.33 Foreign 14.7 - - ---------------------------------------------------------------------- Total Loans 5,460.8 85.6 6.32 Other 74.6 1.2 6.47 ---------------------------------------------------------------------- Total Earning Assets 8,519.9 113.8 5.38 Cash and Non-interest Bearing Deposits 331.6 Other Assets 391.5 --------- Total Assets $9,243.0 ========= Interest Bearing Liabilities Interest Bearing Deposits Domestic Deposits - Demand $1,149.2 0.7 0.26 - Savings 2,608.2 4.6 0.71 - Time 1,443.3 9.1 2.55 ---------------------------------------------------------------------- Total Domestic Deposits 5,200.7 14.4 1.12 Foreign Deposits - Time Due to Banks 1.0 - - - Other Time and Savings 30.5 0.1 1.23 ---------------------------------------------------------------------- Total Foreign Deposits 31.5 0.1 1.11 ---------------------------------------------------------------------- Total Interest Bearing Deposits 5,232.2 14.5 1.12 Short-Term Borrowings 649.8 2.5 1.54 Long-Term Debt 390.4 5.8 6.09 ---------------------------------------------------------------------- Total Interest Bearing Liabilities 6,272.4 22.8 1.47 ---------------------------------------------------------------------- Net Interest Income $91.0 ======= Interest Rate Spread 3.91% Net Interest Margin 4.29% Non-Interest Bearing Demand Deposits (Domestic) 1,636.8 Other Liabilities 360.7 Shareholders' Equity 973.1 --------- Total Liabilities and Shareholders' Equity $9,243.0 ========= Three Months Ended (1) December 31, 2002 Average Income/ Yield/ (dollars in millions) Balance Expense Rate ---------------------------------------------------------------------- Earning Assets Interest Bearing Deposits $796.6 $3.6 1.78% Funds Sold 234.5 0.8 1.42 Investment Securities - Held-to-Maturity 253.8 3.2 4.98 - Available for Sale 2,273.3 24.1 4.24 Loans Held for Sale 38.9 0.6 5.88 Net Loans and Lease Financing Domestic - Commercial and Industrial 867.7 11.4 5.20 - Construction 131.5 1.8 5.30 - Commercial Mortgage 610.5 9.9 6.40 - Residential Mortgage 2,212.6 38.5 6.97 - Installment 443.3 11.5 10.38 - Home Equity 422.2 5.9 5.50 - Purchased Home Equity 10.1 - - - Lease Financing 498.5 6.3 5.03 ---------------------------------------------------------------------- Total Domestic Loans 5,196.4 85.3 6.54 Foreign 14.0 - - ---------------------------------------------------------------------- Total Loans 5,210.4 85.3 6.52 Other 78.7 1.3 6.62 ---------------------------------------------------------------------- Total Earning Assets 8,886.2 118.9 5.33 Cash and Non-interest Bearing Deposits 305.2 Other Assets 363.4 --------- Total Assets $9,554.8 ========= Interest Bearing Liabilities Interest Bearing Deposits Domestic Deposits - Demand $1,099.9 1.1 0.38 - Savings 2,468.2 6.4 1.03 - Time 1,501.1 10.1 2.66 ---------------------------------------------------------------------- Total Domestic Deposits 5,069.2 17.6 1.37 Foreign Deposits - Time Due to Banks 2.9 - - - Other Time and Savings 39.4 0.1 1.38 ---------------------------------------------------------------------- Total Foreign Deposits 42.3 0.1 1.29 ---------------------------------------------------------------------- Total Interest Bearing Deposits 5,111.5 17.7 1.37 Short-Term Borrowings 1,053.5 5.1 1.90 Long-Term Debt 389.9 5.9 6.05 ---------------------------------------------------------------------- Total Interest Bearing Liabilities 6,554.9 28.7 1.73 ---------------------------------------------------------------------- Net Interest Income $90.2 ======= Interest Rate Spread 3.60% Net Interest Margin 4.05% Non-Interest Bearing Demand Deposits (Domestic) 1,601.0 Other Liabilities 329.3 Shareholders' Equity 1,069.6 --------- Total Liabilities and Shareholders' Equity $9,554.8 ========= Three Months Ended (1) March 31, 2002 Average Income/ Yield/ (dollars in millions) Balance Expense Rate ---------------------------------------------------------------------- Earning Assets Interest Bearing Deposits $1,154.7 $5.0 1.77% Funds Sold 237.3 1.0 1.69 Investment Securities - Held-to-Maturity 368.7 5.2 5.66 - Available for Sale 1,939.1 27.2 5.61 Loans Held for Sale 340.9 5.7 6.66 Net Loans and Lease Financing Domestic - Commercial and Industrial 1,150.9 14.5 5.11 - Construction 169.8 2.2 5.20 - Commercial Mortgage 625.9 10.5 6.77 - Residential Mortgage 2,394.0 42.8 7.15 - Installment 390.6 11.0 11.46 - Home Equity 347.9 5.3 6.22 - Purchased Home Equity - - - - Lease Financing 492.0 6.6 5.46 ---------------------------------------------------------------------- Total Domestic Loans 5,571.1 92.9 6.72 Foreign 14.3 0.1 1.71 ---------------------------------------------------------------------- Total Loans 5,585.4 93.0 6.71 Other 88.4 1.3 6.12 ---------------------------------------------------------------------- Total Earning Assets 9,714.5 138.4 5.73 Cash and Non-interest Bearing Deposits 304.0 Other Assets 398.3 ---------- Total Assets $10,416.8 ========== Interest Bearing Liabilities Interest Bearing Deposits Domestic Deposits - Demand $926.4 1.0 0.45 - Savings 2,045.5 7.2 1.43 - Time 1,891.0 14.8 3.17 ---------------------------------------------------------------------- Total Domestic Deposits 4,862.9 23.0 1.92 Foreign Deposits - Time Due to Banks 118.7 0.6 2.09 - Other Time and Savings 83.9 0.4 1.70 ---------------------------------------------------------------------- Total Foreign Deposits 202.6 1.0 1.93 ---------------------------------------------------------------------- Total Interest Bearing Deposits 5,065.5 24.0 1.92 Short-Term Borrowings 1,738.8 11.2 2.61 Long-Term Debt 538.2 8.3 6.27 ---------------------------------------------------------------------- Total Interest Bearing Liabilities 7,342.5 43.5 2.40 ---------------------------------------------------------------------- Net Interest Income $94.9 ======= Interest Rate Spread 3.33% Net Interest Margin 3.92% Non-Interest Bearing Demand Deposits (Domestic) 1,508.9 Other Liabilities 301.9 Shareholders' Equity 1,263.5 ---------- Total Liabilities and Shareholders' Equity $10,416.8 ========== (1) Certain 2002 information has been reclassified to conform to 2003 presentation. Bank of Hawaii Corporation and Subsidiaries Analysis of Change in Net Interest Income - Tax Equivalent Basis (Unaudited) Table 6 --------------------------------------------------------------------- Three Months Ended March 31, 2003 Compared to December 31, 2002 (2) (dollars in millions) Volume(1) Rate(1) Time(1) Total ---------------------------------------------------------------------- Change in Interest Income: Interest Bearing Deposits $(2.8) $0.6 $(0.1) $(2.3) Fed Funds Sold 0.1 (0.1) - - Investment Securities Held-to-Maturity (0.6) (0.3) - (0.9) Available for Sale (0.1) (1.5) - (1.6) Loans Held for Sale (0.4) (0.1) - (0.5) Loans Commercial and Industrial - (0.5) (0.2) (0.7) Construction (0.2) (0.1) (0.1) (0.4) Commercial Mortgage (0.3) (0.4) (0.2) (0.9) Residential Mortgage 0.7 (1.5) - (0.8) Installment 1.5 (0.2) (0.2) 1.1 Home Equity 0.2 (0.2) (0.2) (0.2) Purchased Home Equity 2.4 0.2 - 2.6 Lease Financing - (0.3) (0.1) (0.4) ---------------------------------------------------------------------- Total Loans 4.3 (3.0) (1.0) 0.3 Other (0.1) - - (0.1) ---------------------------------------------------------------------- Total Change in Interest Income 0.4 (4.4) (1.1) (5.1) ---------------------------------------------------------------------- Change in Interest Expense: Interest Bearing Deposits Demand - (0.4) - (0.4) Savings 0.2 (1.9) (0.1) (1.8) Time (0.4) (0.4) (0.2) (1.0) ---------------------------------------------------------------------- Total Interest Bearing Deposits (0.2) (2.7) (0.3) (3.2) Short-Term Borrowings (1.6) (0.9) (0.1) (2.6) Long-Term Debt - - (0.1) (0.1) ---------------------------------------------------------------------- Total Change in Interest Expense (1.8) (3.6) (0.5) (5.9) ---------------------------------------------------------------------- Change in Net Interest Income $2.2 $(0.8) $(0.6) $0.8 ====================================================================== (1) The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume, rate or time for that category. (2) Certain 2002 information has been reclassified to conform to 2003 presentation. Bank of Hawaii Corporation and Subsidiaries Loan Portfolio Balances (Unaudited) Table 7 ---------------------------------------------------------------------- March 31, Dec. 31, March 31, (dollars in millions) 2003 2002 2002 (1) ---------------------------------------------------------------------- Domestic Commercial Commercial and Industrial $824.9 $875.0 $1,114.9 Commercial Mortgage 691.7 591.1 617.6 Construction 86.7 127.5 161.4 Lease Financing 430.4 427.3 436.1 ---------------------------------------------------------------------- Total Commercial 2,033.7 2,020.9 2,330.0 Consumer Residential Mortgage 2,305.3 2,131.4 2,409.4 Home Equity 439.1 428.2 369.8 Purchased Home Equity 170.9 185.8 - Other Consumer 518.5 493.3 389.5 Lease Financing 33.8 34.5 37.9 ---------------------------------------------------------------------- Total Consumer 3,467.6 3,273.2 3,206.6 ---------------------------------------------------------------------- Total Domestic 5,501.3 5,294.1 5,536.6 ---------------------------------------------------------------------- Foreign 64.1 64.9 65.0 ---------------------------------------------------------------------- Total Loans $5,565.4 $5,359.0 $5,601.6 ====================================================================== (1) Certain 2002 information has been reclassified to conform to 2003 presentation. Selected Concentrations of Credit Exposure (Unaudited) ---------------------------------------------------------------------- March 31, Dec. 31, Mar. 31, 2003 2002 2002 Unused Total Total Total Outstanding Commitments Exposure Exposure Exposure (dollars in millions) (1) ---------------------------------------------------------------------- Air Transportation Regional Passenger Carriers $46.4 $12.3 $58.7 $57.3 $59.8 United States Based Passenger Carriers 39.7 - 39.7 39.6 48.7 International Based Passenger Carriers 31.9 - 31.9 32.1 32.4 Cargo Carriers 14.7 - 14.7 15.0 14.8 ---------------------------------------------------------------------- Total Air Transportation $132.7 $12.3 $145.0 $144.0 $155.7 ====================================================================== Guam Hotels $42.8 $- $42.8 $44.4 $42.8 Other Commercial 139.6 31.7 171.3 166.0 230.5 Consumer 254.0 9.9 263.9 257.4 283.2 ---------------------------------------------------------------------- Total Guam $436.4 $41.6 $478.0 $467.8 $556.5 ====================================================================== Syndicated Exposure $319.4 $633.1 $952.5 $1,002.1 $1,352.2 ====================================================================== (1) Exposure includes loans, leveraged and operating leases. Bank of Hawaii Corporation and Subsidiaries Consolidated Non-Performing Assets and Accruing Loans Past Due 90 Days or More (Unaudited) Table 8 ---------------------------------------------------------------------- March 31, Dec. 31, Sept. 30, June 30, March 31, (dollars in millions) 2003 2002 2002(1) 2002(1) 2002(1) ---------------------------------------------------------------------- Non-Performing Assets Non-Accrual Loans Commercial Commercial and Industrial $2.4 $5.9 $6.4 $14.4 $27.4 Commercial Mortgage 17.9 20.3 18.1 25.3 15.1 Construction - 0.5 0.9 0.7 1.0 Lease Financing 3.2 4.1 5.7 6.9 4.4 ---------------------------------------------------------------------- Total Commercial 23.5 30.8 31.1 47.3 47.9 Consumer Residential Mortgage 11.5 13.9 14.3 14.2 15.3 Home Equity 0.1 0.3 0.2 0.1 0.4 Other Consumer - - 0.1 - 0.1 ---------------------------------------------------------------------- Total Consumer 11.6 14.2 14.6 14.3 15.8 ---------------------------------------------------------------------- Total Non-Accrual Loans 35.1 45.0 45.7 61.6 63.7 ---------------------------------------------------------------------- Non-Accrual Loans Held for Sale - - - - 7.8 Foreclosed Real Estate 9.1 9.4 17.6 17.2 19.2 ---------------------------------------------------------------------- Total Non-Performing Assets $44.2 $54.4 $63.3 $78.8 $90.7 ====================================================================== Accruing Loans Past Due 90 Days or More Commercial Commercial and Industrial $- $0.2 $- $- $0.2 Commercial Mortgage 0.4 0.3 - - 1.2 ---------------------------------------------------------------------- Total Commercial 0.4 0.5 - - 1.4 Consumer Residential Mortgage 1.6 0.6 1.4 0.9 2.1 Other Consumer 2.3 0.7 0.3 0.5 0.7 Lease Financing - - - 0.1 0.1 ---------------------------------------------------------------------- Total Consumer 3.9 1.3 1.7 1.5 2.9 ---------------------------------------------------------------------- Total Accruing and Past Due $4.3 $1.8 $1.7 $1.5 $4.3 ====================================================================== Total Loans $5,565.4 $5,359.0 $5,259.3 $5,409.2 $5,601.6 ====================================================================== Ratio of Non-Accrual Loans to Total Loans 0.63% 0.84% 0.87% 1.14% 1.14% ---------------------------------------------------------------------- Ratio of Non-Performing Assets to Total Loans, Foreclosed Real Estate and Non-Performing Loans Held for Sale 0.79% 1.01% 1.20% 1.45% 1.61% ---------------------------------------------------------------------- Ratio of Non-Performing Assets and Accruing Loans Past Due 90 Days or More to Total Loans 0.87% 1.05% 1.24% 1.48% 1.70% ---------------------------------------------------------------------- Quarter to Quarter Changes in Non-Performing Assets Balance at Beginning of Quarter $54.4 $63.3 $78.8 $90.7 $79.7 Additions 4.8 12.0 7.0 20.5 36.4 Reductions Payments and Sales of Loans (5.6) (6.9) (8.5) (20.6) (12.9) Return to Accrual (5.6) (1.9) (9.1) (6.2) (6.3) Sales of Foreclosed Assets (1.1) (9.4) (1.4) (3.5) (0.9) Charge-offs (2.7) (2.7) (3.5) (2.1) (5.3) ---------------------------------------------------------------------- Total Reductions (15.0) (20.9) (22.5) (32.4) (25.4) ---------------------------------------------------------------------- Balance at End of Quarter $44.2 $54.4 $63.3 $78.8 $90.7 ====================================================================== (1) Certain 2002 information has been reclassified to conform to 2003 presentation. Bank of Hawaii Corporation and Subsidiaries Consolidated Allowance for Loan and Lease Losses (Unaudited) Table 9 ---------------------------------------------------------------------- Three Months Ended(1) March 31, Dec. 31, March 31, (dollars in millions) 2003 2002 2002 ---------------------------------------------------------------------- Balance at Beginning of Period $142.9 $154.5 $159.0 Loans Charged-Off Commercial Commercial and Industrial (1.6) (2.0) (7.3) Construction (0.5) - (0.5) Lease Financing - (9.6) - Consumer Residential Mortgage (0.7) (0.4) (1.4) Home Equity (0.1) (0.1) (0.1) Other Consumer (3.1) (2.8) (3.7) Lease Financing (0.1) (0.1) (0.1) ---------------------------------------------------------------------- Total Charge-Offs (6.1) (15.0) (13.1) Recoveries on Loans Previously Charged-Off Commercial Commercial and Industrial 0.6 1.4 0.7 Commercial Mortgage - 0.1 1.8 Construction 0.9 0.2 - Consumer Residential Mortgage 0.2 0.3 0.3 Home Equity 0.1 - 0.1 Other Consumer 1.3 1.3 1.8 Lease Financing 0.1 0.1 - Foreign 0.1 - 0.1 ---------------------------------------------------------------------- Total Recoveries 3.3 3.4 4.8 ---------------------------------------------------------------------- Net Loan Charge-Offs (2.8) (11.6) (8.3) Provision for Loan and Lease Losses - - 8.3 ---------------------------------------------------------------------- Balance at End of Period (2) $140.0 $142.9 $159.0 ====================================================================== Average Loans Outstanding $5,460.8 $5,210.4 $5,585.4 ====================================================================== Ratio of Net Charge-Offs to Average Loans Outstanding (annualized) 0.21% 0.88% 0.60% Ratio of Allowance to Loans Outstanding 2.52% 2.67% 2.84% (1) Certain 2002 information has been reclassified to conform to 2003 presentation. (2) Totals may not add due to rounding. Bank of Hawaii Corporation and Subsidiaries Information Technology Systems Replacement Project (Unaudited) Table 10 ---------------------------------------------------------------------- Professional Employee Accelerated Other Total Fees Termination Depreciation Associated (dollars in millions) Benefits Costs(1) ---------------------------------------------------------------------- Costs Incurred: Three Months Ended: September 30, 2002 $1.9 $1.0 $3.2 $0.5 $6.6 December 31, 2002 3.2 0.2 2.2 1.4 7.0 ---------------------------------------------------------------------- Year Ended December 31, 2002 5.1 1.2 5.4 1.9 13.6 Three Months Ended March 31, 2003 3.5 0.4 2.0 1.5 7.4 ---------------------------------------------------------------------- Total Costs Incurred $8.6 $1.6 $7.4 $3.4 $21.0 ====================================================================== Total Expected Project Costs $13.1 $5.9 $9.2 $7.3 $35.5 ====================================================================== (1) Includes contract termination, equipment, excise tax and other costs. Bank of Hawaii Corporation and Subsidiaries Business Segment Selected Financial Information (Unaudited) Table 11 ---------------------------------------------------------------------- Investment Treasury Retail Commercial Services and Other Consolidated (dollars in Banking Banking Group Corporate Total thousands) ---------------------------------------------------------------------- Three Months Ended March 31, 2003 Net Interest Income $54,988 $36,383 $3,970 $(4,341) $91,000 Provision for Loan and Lease Losses (848) (2,151) - 2,999 - ---------------------------------------------------------------------- Net Interest Income After Provision for Loan and Lease Losses 54,140 34,232 3,970 (1,342) 91,000 Non-Interest Income 17,364 8,415 15,680 3,294 44,753 ---------------------------------------------------------------------- 71,504 42,647 19,650 1,952 135,753 Information Technology Systems Replacement Project (583) (23) (244) (6,567) (7,417) Non-Interest Expense (40,846) (22,541) (15,904) (3,492) (82,783) ---------------------------------------------------------------------- Income Before Income Taxes 30,075 20,083 3,502 (8,107) 45,553 Provision for Income Taxes (11,128) (7,334) (1,296) 4,006 (15,752) ---------------------------------------------------------------------- Allocated Net Income (Loss) 18,947 12,749 2,206 (4,101) 29,801 ---------------------------------------------------------------------- Allowance Funding Value (152) (1,141) (10) 1,303 - GAAP Provision 848 2,151 - (2,999) - Economic Provision (2,708) (3,058) (132) (6) (5,904) Tax Effect of Adjustments 744 758 53 629 2,184 Capital Charge (5,403) (5,367) (1,517) (14,464) (26,751) ---------------------------------------------------------------------- Net Income (Loss) After Capital Charge (NIACC) $12,276 $6,092 $600 $(19,638) $(670) ====================================================================== RAROC (ROE for the Company) 36% 24% 16% (4)% 12% ====================================================================== Total Assets at March 31, 2003 $3,471,677 $2,242,681 $145,925 $3,549,927 $9,410,210 ====================================================================== Three Months Ended March 31, 2002 Net Interest Income $49,556 $35,630 $3,001 $6,708 $94,895 Provision for Loan and Lease Losses (1,942) (6,510) - 160 (8,292) ---------------------------------------------------------------------- Net Interest Income After Provision for Loan and Lease Losses 47,614 29,120 3,001 6,868 86,603 Non-Interest Income 24,052 8,621 17,824 2,528 53,025 ---------------------------------------------------------------------- 71,666 37,741 20,825 9,396 139,628 Restructuring and Other Related Costs - - - (1,979) (1,979) Non-Interest Expense (46,314) (24,955) (16,061) (2,114) (89,444) ---------------------------------------------------------------------- Income Before Income Taxes 25,352 12,786 4,764 5,303 48,205 Provision for Income Taxes (9,380) (4,655) (1,763) (1,351) (17,149) ---------------------------------------------------------------------- Allocated Net Income 15,972 8,131 3,001 3,952 31,056 ---------------------------------------------------------------------- Allowance Funding Value (267) (1,551) (7) 1,825 - GAAP Provision 1,942 6,510 - (160) 8,292 Economic Provision (2,504) (4,239) (127) (1) (6,871) Tax Effect of Adjustments 307 (266) 50 (617) (526) Capital Charge (5,323) (6,559) (1,501) (21,366) (34,749) ---------------------------------------------------------------------- Net Income (Loss) After Capital Charge (NIACC) $10,127 $2,026 $1,416 $(16,367) $(2,798) ====================================================================== RAROC (ROE for the Company) 32% 15% 22% 24% 10% ====================================================================== Total Assets at March 31, 2002 $3,243,345 $2,598,482 $113,914 $4,289,280 $10,245,021 ====================================================================== Bank of Hawaii Corporation and Subsidiaries Quarterly Summary of Selected Consolidated Financial Data (Unaudited) Table 12 ---------------------------------------------------------------------- Three Months Ended (1) (dollars in thousands March 31, Dec. 31, Sept. 30, June 30, March 31, except per share amounts) 2003 2002 2002 2002 2002 ---------------------------------------------------------------------- Quarterly Operating Results Interest Income Interest and Fees on Loan and Leases $85,773 $85,945 $89,335 $92,441 $98,645 Income on Investment Securities - Held to Maturity 2,283 3,122 3,963 4,544 5,145 Income on Investment Securities - Available for Sale 22,463 24,088 26,175 26,805 27,193 Deposits 1,307 3,578 5,384 6,011 5,047 Funds Sold and Security Resale Agreements 764 834 914 752 1,003 Other 1,189 1,312 1,575 1,395 1,332 ------------------- -------------------------------------------------- Total Interest Income 113,779 118,879 127,346 131,948 138,365 Interest Expense Deposits 14,447 17,657 20,547 22,166 23,978 Security Repurchase Agreements 2,242 4,585 7,039 8,256 10,293 Funds Purchased 205 255 299 245 231 Short-Term Borrowings 24 217 334 289 649 Long-Term Debt 5,861 5,947 6,946 8,055 8,319 ---------------------------------------------------------------------- Total Interest Expense 22,779 28,661 35,165 39,011 43,470 ---------------------------------------------------------------------- Net Interest Income 91,000 90,218 92,181 92,937 94,895 Provision for Loan and Lease Losses - - - 3,324 8,292 ---------------------------------------------------------------------- Net Interest Income After Provision for Loan and Lease Losses 91,000 90,218 92,181 89,613 86,603 Non-Interest Income Trust and Asset Management 13,190 13,085 13,655 14,175 14,818 Mortgage Banking 283 4,398 3,669 2,842 7,957 Service Charges on Deposit Accounts 8,950 8,326 7,925 7,956 8,410 Fees, Exchange, and Other Service Charges 12,980 12,963 13,114 13,065 12,452 Investment Securities Gains 583 612 - 3 - Insurance 2,982 3,099 2,677 2,563 2,599 Other 5,785 7,872 5,997 7,314 6,789 ---------------------------------------------------------------------- Total Non-Interest Income 44,753 50,355 47,037 47,918 53,025 Non-Interest Expense Salaries 36,459 38,462 37,994 37,884 39,187 Pensions and Other Employee Benefits 9,970 6,272 7,377 9,391 9,996 Net Occupancy Expense 9,613 10,638 9,597 9,321 9,593 Net Equipment Expense 9,748 11,077 10,058 9,997 10,121 Restructuring and Other Related Costs - 385 - - 1,979 Information Technology Systems Replacement Project 7,417 7,052 6,576 - - Other 16,993 22,827 20,141 22,777 20,547 ---------------------------------------------------------------------- Total Non-Interest Expense 90,200 96,713 91,743 89,370 91,423 ---------------------------------------------------------------------- Income Before Income Taxes 45,553 43,860 47,475 48,161 48,205 Provision for Income Taxes 15,752 14,952 17,275 17,145 17,149 ---------------------------------------------------------------------- Net Income $29,801 $28,908 $30,200 $31,016 $31,056 ====================================================================== Basic Earnings Per Share $0.49 $0.45 $0.44 $0.43 $0.42 Diluted Earnings Per Share $0.47 $0.44 $0.43 $0.42 $0.41 Balance Sheet Totals Total Assets 9,410,210 9,516,418 9,702,700 9,824,065 10,245,021 Net Loans 5,425,343 5,216,151 5,104,857 5,250,216 5,442,601 Total Deposits 6,987,331 6,920,161 6,627,673 6,455,981 6,543,781 Total Shareholders' Equity 952,007 1,015,759 1,100,706 1,191,072 1,265,907 Performance Ratios Return on Average Assets 1.31% 1.20% 1.22% 1.23% 1.21% Return on Average Equity 12.42% 10.72% 10.40% 9.94% 9.97% Efficiency Ratio 66.44% 68.80% 65.90% 63.45% 61.81% Efficiency Ratio excluding ITSRP and Restructuring Costs 60.98% 63.51% 61.18% 63.45% 60.47% (1) Certain 2002 information has been reclassified to conform to 2003 presentation.
SOURCE:
Bank of Hawaii
Bank of Hawaii Corporation
Stafford Kiguchi, 808/537-8580 (Media)
pager: 877/849-5423
E-mail: skiguchi@boh.com
or
Cindy Wyrick, 808/537-8430 (Investor/Analyst)
E-mail: cwyrick@boh.com
http://www.businesswire.com