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Bank of Hawaii Corporation First Quarter 2018 Financial Results
Supporting Materials:
  • Diluted Earnings Per Share $1.28
  • Net Income $54.0 Million
  • Board of Directors Authorizes Increased Dividend of $0.60 Per Share

HONOLULU--(BUSINESS WIRE)--Apr. 23, 2018-- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $1.28 for the first quarter of 2018, up from $1.01 in the previous quarter and up from $1.20 in the same quarter last year. Net income for the first quarter of 2018 was $54.0 million, an increase of $11.0 million compared with net income of $43.0 million in the fourth quarter of 2017 and up $2.8 million from net income of $51.2 million in the first quarter of 2017.

The Company’s Board of Directors declared a quarterly cash dividend of $0.60 per share on the Company’s outstanding shares, an increase of 15.4 percent from the cash dividend of $0.52 per share in the previous quarter. The dividend will be payable on June 14, 2018 to shareholders of record at the close of business on May 31, 2018.

"We were pleased with our financial performance during the first quarter of 2018," said Peter S. Ho, Chairman, President, and CEO. "Our balance sheet remained strong, our net interest margin expanded, asset quality continued its stable trend, and expenses were well controlled. We continue to make solid progress in transforming our branches to the new Branch of Tomorrow concept, with six locations now completed, the most recent being Pearlridge in January."

The return on average assets for the first quarter of 2018 was 1.29 percent, an increase from 1.00 percent during the previous quarter and 1.26 percent in the same quarter last year. The return on average equity for the first quarter of 2018 was 17.74 percent, up from 13.85 percent in the fourth quarter of 2017 and 17.63 percent in the first quarter of 2017. The efficiency ratio during the first quarter of 2018 was 57.91 percent compared with 57.49 percent in the previous quarter and 53.42 percent in the same quarter last year.

Financial Highlights

Net interest income, on a taxable-equivalent basis, for the first quarter of 2018 was $120.3 million, down $1.3 million from net interest income of $121.6 million in the fourth quarter of 2017 and up $7.4 million from net interest income of $112.9 million in the first quarter of 2017. The net interest margin was 3.00 percent for the first quarter of 2018, up 2 basis points compared with 2.98 percent in the previous quarter and up 11 basis points from 2.89 percent for the first quarter last year. The net interest margin in the first quarter of 2018 was negatively impacted by 4 basis points due to revisions in the tax-equivalent adjustment as a result of the Tax Cuts and Jobs Act. There was no impact on net interest income as a result of this revision. Net interest income, on a reported basis, for the first quarter of 2018 was $119.0 million, up $0.2 million from net interest income of $118.8 million in the fourth quarter of 2017 and up $9.1 million from net interest income of $108.9 million in the first quarter of 2017. Analyses of the changes in net interest income are included in Tables 8a and 8b.

Results for the first quarter of 2018 included a provision for credit losses of $4.1 million compared with a provision for credit losses of $4.3 million in the fourth quarter of 2017 and a provision for credit losses of $4.4 million in the first quarter of 2017.

Noninterest income was $44.0 million in the first quarter of 2018, an increase of $2.1 million compared with noninterest income of $41.9 million in the fourth quarter of 2017 and a decrease of $11.9 million compared with noninterest income of $55.9 million in the first quarter of 2017. Noninterest income in the first quarter of 2018 included $2.8 million resulting from a low-income housing investment sale and distribution. There were no significant items in noninterest income during the fourth quarter of 2017. Noninterest income in the first quarter of 2017 included a gain of $12.5 million resulting from the sale of 90,000 Visa Class B shares.

Noninterest expense was $94.4 million in the first quarter of 2018, an increase of $2.1 million compared with noninterest expense of $92.3 million in the fourth quarter of 2017 and an increase of $5.8 million from noninterest expense of $88.6 million in the same quarter last year. Noninterest expense in the first quarter of 2018 included seasonal payroll expenses of approximately $2.5 million, a legal reserve of $2.0 million, and severance expenses of $1.0 million. Noninterest expense in the fourth quarter of 2017 included one-time employee bonuses of $2.2 million. Noninterest expense in the first quarter of 2017 included seasonal payroll expenses of approximately $2.5 million. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the first quarter of 2018 was 16.19 percent compared with an effective tax rate of 32.93 percent in the previous quarter and 29.72 percent during the same quarter last year. The provision for income taxes was $10.4 million in the first quarter of 2018, a decrease of $10.6 million or 50.5 percent compared with the fourth quarter of 2017 and a decrease of $11.2 million or 51.8 percent compared to the first quarter in 2017. The lower effective tax rate in the first quarter of 2018 was primarily due to the reduction in the federal corporate tax rate from 35 percent to 21 percent as a result of the Tax Cuts and Jobs Act. The tax rate during the first quarter of 2018 was also favorably impacted by a $2.0 million adjustment to the Company’s low-income housing investments. The effective tax rate for the fourth quarter of 2017 included a $3.6 million one-time unfavorable adjustment related to the tax reform bill. The first quarter of 2017 included tax benefits from the exercise of stock options and the vesting of restricted stock which were $1.1 million higher, when compared to the first quarter of 2018.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services and Private 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 Table 13.

Asset Quality

The Company’s strong asset quality remained stable during the first quarter of 2018. Total non-performing assets decreased to $15.7 million at March 31, 2018, down from non-performing assets of $16.1 million at December 31, 2017 and $19.0 million at March 31, 2017. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.16 percent at the end of the first quarter of 2018, unchanged from the end of the fourth quarter of 2017 and down from 0.21 percent at the end of the first quarter last year.

Accruing loans and leases past due 90 days or more were $8.2 million at March 31, 2018, compared with $7.1 million at December 31, 2017 and $5.9 million at March 31, 2017. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $56.7 million at March 31, 2018, up from $55.7 million at December 31, 2017 and $53.0 million at March 31, 2017. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loans and leases charged off during the first quarter of 2018 were $3.5 million or 0.15 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $6.0 million during the quarter were partially offset by recoveries of $2.5 million. Net charge-offs during the fourth quarter of 2017 were $3.8 million or 0.15 percent annualized of total average loans and leases outstanding and were comprised of $5.8 million in charge-offs partially offset by recoveries of $2.1 million. Net charge-offs during the first quarter of 2017 were $3.6 million or 0.16 percent annualized of total average loans and leases outstanding and were comprised of $5.7 million in charge-offs partially offset by recoveries of $2.1 million.

The allowance for loan and lease losses was $107.9 million at March 31, 2018, an increase from $107.3 million at December 31, 2017 and up from $105.1 million at March 31, 2017. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.09 percent at March 31, 2018 compared with 1.10 percent at December 31, 2017 and 1.15 percent at March 31, 2017. The reserve for unfunded commitments was $6.8 million at March 31, 2018, unchanged from December 31, 2017 and up from $6.6 million at March 31, 2017. Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets were $17.14 billion at March 31, 2018, up from $17.09 billion at December 31, 2017 and $16.66 billion at March 31, 2017. Average total assets were $16.96 billion during the first quarter of 2018, a decrease from average total assets of $17.08 billion during the previous quarter and an increase from $16.43 billion during the same quarter last year.

The investment securities portfolio was $5.97 billion at March 31, 2018 compared with $6.16 billion at December 31, 2017 and $6.19 billion at March 31, 2017. The portfolio at March 31, 2018 remains largely comprised of securities issued by U. S. government agencies and includes $3.79 billion in securities held to maturity and $2.18 billion in securities available for sale.

Total loans and leases were $9.92 billion at March 31, 2018, up 1.2 percent from $9.80 billion at December 31, 2017 and up 8.8 percent from $9.11 billion at March 31, 2017. Average total loans and leases were $9.80 billion during the first quarter of 2018, up from $9.69 billion during the fourth quarter of 2017 and $9.02 billion during the same quarter last year.

The commercial loan portfolio was $3.79 billion at the end of the first quarter of 2018, up 0.7 percent from commercial loans of $3.77 billion at the end of the fourth quarter of 2017 and up 4.5 percent from $3.63 billion at the end of the same quarter last year. The consumer loan portfolio increased to $6.12 billion at the end of the first quarter of 2018, up 1.5 percent from consumer loans of $6.03 billion at the end of the fourth quarter of 2017 and up 11.7 percent from $5.48 billion at the end of the same quarter last year. Loan and lease portfolio balances are summarized in Table 10.

Total deposits increased to $14.96 billion at March 31, 2018 compared with total deposits of $14.88 billion at December 31, 2017 and $14.48 billion at March 31, 2017. Average total deposits were $14.72 billion during the first quarter of 2018 compared with $14.81 billion during the previous quarter and $14.22 billion during the same quarter last year.

Consumer deposits remained strong, increasing to $7.67 billion at the end of the first quarter of 2018, up 2.5 percent from consumer deposits of $7.48 billion the previous quarter and up 6.5 percent from $7.20 billion in the first quarter last year. Commercial deposits were $5.90 billion at the end of the first quarter of 2018, down 1.3 percent from commercial deposits of $5.97 billion during the previous quarter and down 2.6 percent from $6.05 billion in the first quarter last year. Other deposits, including public funds, were $1.39 billion at the end of the first quarter, down 2.7 percent from other deposits of $1.43 billion in the previous quarter and up 13.5 percent compared with $1.23 billion in the same quarter last year. Deposit balances are summarized in Tables 7 and 10.

Total shareholders’ equity increased to $1.24 billion at March 31, 2018 compared with total shareholder’s equity of $1.23 billion at December 31, 2017 and $1.19 billion at March 31, 2017. The Tier 1 Capital Ratio was 13.37 percent at March 31, 2018 compared with 13.24 percent at December 31, 2017 and 13.41 percent at March 31, 2017. The Tier 1 Leverage Ratio at March 31, 2018 was 7.46 percent compared with 7.26 percent at December 31, 2017 and 7.29 percent at March 31, 2017.

During the first quarter of 2018, the Company repurchased 165.5 thousand shares of common stock at a total cost of $13.9 million under its share repurchase program. The average cost was $84.23 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through March 31, 2018, the Company has repurchased 54.4 million shares and returned over $2.0 billion to shareholders at an average cost of $38.43 per share. Remaining buyback authority under the share repurchase program was $106.1 million at March 31, 2018. From April 1 through April 20, 2018 the Company repurchased an additional 60.0 thousand shares of common stock at an average cost of $82.75 per share.

Hawaii Economy

General economic conditions in Hawaii remained positive during the first quarter of 2018 due to continuation of the strong tourism market, active construction industry, low unemployment, and robust real estate market.

The statewide seasonally-adjusted unemployment rate remains very low at 2.1 percent in March 2018 compared to 4.1 percent nationally. For the first two months of 2018, total visitor arrivals increased 7.7 percent and visitor spending increased 8.5 percent compared to the same period in 2017. All four larger Hawaiian Islands recorded increases in both visitor spending and arrivals compared to last year. For the first quarter of 2018, single-family home sales on Oahu decreased 0.4 percent and condominium sales increased 0.7 percent compared with the same period last year. During the first quarter of 2018, the median sales price of a single-family home on Oahu increased 2.0 percent and the median sales price of a condominium on Oahu increased 9.0 percent compared with the same period last year. As of March 31, 2018, the inventory of single-family homes on Oahu was 2.1 months and the inventory of condominiums was 2.6 months. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its first quarter financial results today at 2:00 p.m. Eastern Daylight Time (8:00 a.m. Hawaii Time). The call will be accessible via teleconference and via the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. The toll-free number is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning at approximately 11:00 a.m. Hawaii Time on Monday, April 23, 2018. 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 pass code 5756239 when prompted. Participants can also dial 1 (800) 585-8367 to access the replay. In addition, a replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2017, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.

Bank of Hawaii Corporation is an independent regional financial services company serving businesses, consumers and governments in Hawaii, American Samoa and the West Pacific.The Company’s principal subsidiary, Bank of Hawaii, was founded in 1897.For more information about Bank of Hawaii Corporation, see the Company’s web site, www.boh.com.

               
Bank of Hawaii Corporation and Subsidiaries  
Financial Highlights   Table 1  
    Three Months Ended  
    March 31,   December 31,   March 31,  
(dollars in thousands, except per share amounts)   2018   2017   2017  

For the Period:

             
Operating Results              
Net Interest Income   $ 118,956   $ 118,770   $ 109,872  
Provision for Credit Losses     4,125     4,250     4,400  
Total Noninterest Income     44,035     41,855     55,916  
Total Noninterest Expense     94,384     92,336     88,568  
Net Income     54,040     42,953     51,176  
Basic Earnings Per Share     1.29     1.02     1.21  
Diluted Earnings Per Share     1.28     1.01     1.20  
Dividends Declared Per Share     0.52     0.52     0.50  
               
Performance Ratios              
Return on Average Assets     1.29 %   1.00 %   1.26 %
Return on Average Shareholders' Equity     17.74     13.85     17.63  
Efficiency Ratio 1     57.91     57.49     53.42  
Net Interest Margin 2     3.00     2.98     2.89  
Dividend Payout Ratio 3     40.31     50.98     41.32  
Average Shareholders' Equity to Average Assets     7.29     7.20     7.16  
               
Average Balances              
Average Loans and Leases   $ 9,803,753   $ 9,688,710   $ 9,020,351  
Average Assets     16,957,430     17,084,596     16,434,606  
Average Deposits     14,720,266     14,813,218     14,218,886  
Average Shareholders' Equity     1,235,550     1,230,564     1,177,326  
               
Per Share of Common Stock              
Book Value   $ 29.33   $ 29.05   $ 27.92  
Tangible Book Value     28.59     28.31     27.18  
Market Value              
Closing     83.10     85.70     82.36  
High     89.09     88.38     90.80  
Low     78.40     77.71     77.03  
               
    March 31,   December 31,   March 31,  
    2018   2017   2017  

As of Period End:

             
Balance Sheet Totals              
Loans and Leases   $ 9,916,628   $ 9,796,947   $ 9,113,809  
Total Assets     17,136,030     17,089,052     16,664,215  
Total Deposits     14,957,133     14,883,968     14,476,533  
Other Debt     235,699     260,716     267,921  
Total Shareholders' Equity     1,241,193     1,231,868     1,193,137  
               
Asset Quality              
Non-Performing Assets   $ 15,736   $ 16,120   $ 19,003  
Allowance for Loan and Lease Losses     107,938     107,346     105,064  
Allowance to Loans and Leases Outstanding     1.09 %   1.10 %   1.15 %
               
Capital Ratios              
Common Equity Tier 1 Capital Ratio     13.37 %   13.24 %   13.41 %
Tier 1 Capital Ratio     13.37     13.24     13.41  
Total Capital Ratio     14.59     14.46     14.66  
Tier 1 Leverage Ratio     7.46     7.26     7.29  
Total Shareholders' Equity to Total Assets     7.24     7.21     7.16  
Tangible Common Equity to Tangible Assets 4     7.07     7.04     6.98  
Tangible Common Equity to Risk-Weighted Assets 4     12.80     12.84     13.04  
               
Non-Financial Data              
Full-Time Equivalent Employees     2,138     2,132     2,115  
Branches     69     69     69  
ATMs     377     387     441  
               
1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
2 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
3 Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.
4 Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 “Reconciliation of Non-GAAP Financial Measures."
   
               
Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures   Table 2
        March 31,   December 31,   March 31,
(dollars in thousands)   2018   2017   2017
                   
Total Shareholders' Equity   $ 1,241,193   $ 1,231,868   $ 1,193,137

Less: Goodwill

    31,517     31,517     31,517
Tangible Common Equity   $ 1,209,676   $ 1,200,351   $ 1,161,620
                   
Total Assets   $ 17,136,030   $ 17,089,052   $ 16,664,215

Less: Goodwill

    31,517     31,517     31,517
Tangible Assets   $ 17,104,513   $ 17,057,535   $ 16,632,698
                   

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

  $ 9,451,647   $ 9,348,296   $ 8,908,024
                   
Total Shareholders' Equity to Total Assets     7.24%     7.21%     7.16%
Tangible Common Equity to Tangible Assets (Non-GAAP)     7.07%     7.04%     6.98%
                   
Tier 1 Capital Ratio     13.37%     13.24%     13.41%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)     12.80%     12.84%     13.04%
               
             
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income   Table 3
    Three Months Ended
    March 31,   December 31,   March 31,
(dollars in thousands, except per share amounts)   2018   2017   2017
Interest Income            
Interest and Fees on Loans and Leases   $ 97,634     $ 96,974     $ 87,937
Income on Investment Securities            
Available-for-Sale     12,141       11,866       11,084
Held-to-Maturity     21,296       21,782       19,706
Deposits     18       3       5
Funds Sold     757       717       890
Other     300       271       230
Total Interest Income     132,146       131,613       119,852
Interest Expense            
Deposits     7,581       6,980       3,691
Securities Sold Under Agreements to Repurchase     4,564       4,664       5,185
Funds Purchased     53       81       3
Short-Term Borrowings     16       -       -
Other Debt     976       1,118       1,101
Total Interest Expense     13,190       12,843       9,980
Net Interest Income     118,956       118,770       109,872
Provision for Credit Losses     4,125       4,250       4,400
Net Interest Income After Provision for Credit Losses     114,831       114,520       105,472
Noninterest Income            
Trust and Asset Management     11,181       11,105       11,479
Mortgage Banking     2,145       2,593       3,300
Service Charges on Deposit Accounts     7,129       8,053       8,325
Fees, Exchange, and Other Service Charges     14,333       13,784       13,332
Investment Securities Gains (Losses), Net     (666 )     (617 )     12,133
Annuity and Insurance     1,206       1,273       1,995
Bank-Owned Life Insurance     1,842       1,609       1,497
Other     6,865       4,055       3,855
Total Noninterest Income     44,035       41,855       55,916
Noninterest Expense            
Salaries and Benefits     54,422       51,698       51,165
Net Occupancy     8,534       8,510       8,168
Net Equipment     5,527       5,454       5,501
Data Processing     3,891       4,310       3,410
Professional Fees     2,773       3,266       2,779
FDIC Insurance     2,157       2,253       2,209
Other     17,080       16,845       15,336
Total Noninterest Expense     94,384       92,336       88,568
Income Before Provision for Income Taxes     64,482       64,039       72,820
Provision for Income Taxes     10,442       21,086       21,644
Net Income   $ 54,040     $ 42,953     $ 51,176
Basic Earnings Per Share   $ 1.29     $ 1.02     $ 1.21
Diluted Earnings Per Share   $ 1.28     $ 1.01     $ 1.20
Dividends Declared Per Share   $ 0.52     $ 0.52     $ 0.50
Basic Weighted Average Shares     42,038,573       42,116,452       42,406,006
Diluted Weighted Average Shares     42,358,425       42,450,191       42,749,866
           

 

Note: Certain prior period information has been reclassified to conform to current presentation.

             
             
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income   Table 4
      Three Months Ended
      March 31,   December 31,   March 31,
(dollars in thousands)   2018   2017   2017
Net Income   $ 54,040     $ 42,953     $ 51,176
Other Comprehensive Income (Loss), Net of Tax:            
  Net Unrealized Gains (Losses) on Investment Securities     (9,121 )     (10,430 )     4,894
  Defined Benefit Plans     216       738       146
Other Comprehensive Income (Loss)     (8,905 )     (9,692 )     5,040
Comprehensive Income   $ 45,135     $ 33,261     $ 56,216
             
             
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition   Table 5
    March 31,   December 31,   March 31,
(dollars in thousands)   2018   2017   2017
Assets            
Interest-Bearing Deposits in Other Banks   $ 2,589     $ 3,421     $ 3,486  
Funds Sold     387,766       181,413       620,065  
Investment Securities            
Available-for-Sale     2,184,187       2,232,979       2,341,570  
Held-to-Maturity (Fair Value of $3,711,149; $3,894,121; and $3,848,609)     3,789,092       3,928,170       3,848,088  
Loans Held for Sale     23,548       19,231       20,899  
Loans and Leases     9,916,628       9,796,947       9,113,809  
Allowance for Loan and Lease Losses     (107,938 )     (107,346 )     (105,064 )
Net Loans and Leases     9,808,690       9,689,601       9,008,745  
Total Earning Assets     16,195,872       16,054,815       15,842,853  
Cash and Due from Banks     174,871       263,017       119,972  
Premises and Equipment, Net     137,201       130,926       114,865  
Accrued Interest Receivable     52,941       50,485       48,654  
Foreclosed Real Estate     2,768       1,040       2,529  
Mortgage Servicing Rights     24,493       24,622       24,291  
Goodwill     31,517       31,517       31,517  
Bank-Owned Life Insurance     280,537       280,034       275,685  
Other Assets     235,830       252,596       203,849  
Total Assets   $ 17,136,030     $ 17,089,052     $ 16,664,215  
             
Liabilities            
Deposits            
Noninterest-Bearing Demand   $ 4,759,777     $ 4,724,300     $ 4,593,783  
Interest-Bearing Demand     3,028,373       3,082,563       2,886,573  
Savings     5,397,291       5,389,013       5,596,080  
Time     1,771,692       1,688,092       1,400,097  
Total Deposits     14,957,133       14,883,968       14,476,533  
Funds Purchased     -       -       4,616  
Securities Sold Under Agreements to Repurchase     505,293       505,293       505,292  
Other Debt     235,699       260,716       267,921  
Retirement Benefits Payable     37,046       37,312       48,436  
Accrued Interest Payable     8,229       6,946       6,410  
Taxes Payable and Deferred Taxes     29,557       24,009       42,046  
Other Liabilities     121,880       138,940       119,824  
Total Liabilities     15,894,837       15,857,184       15,471,078  
Shareholders' Equity            

Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: March 31, 2018 - 58,051,646 / 42,314,414; December 31, 2017 - 57,959,074 / 42,401,443; and March 31, 2017 - 57,962,462 / 42,736,032)

    577       576       576  
Capital Surplus     563,598       561,161       553,898  
Accumulated Other Comprehensive Loss     (51,097 )     (34,715 )     (28,866 )
Retained Earnings     1,551,900       1,512,218       1,444,495  

Treasury Stock, at Cost (Shares: March 31, 2018 - 15,737,232; December 31, 2017 - 15,557,631; and March 31, 2017 - 15,226,430)

    (823,785 )     (807,372 )     (776,966 )
Total Shareholders' Equity     1,241,193       1,231,868       1,193,137  
Total Liabilities and Shareholders' Equity   $ 17,136,030     $ 17,089,052     $ 16,664,215  
             
                             
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity   Table 6
                Accum.            
                Other            
                Compre-            
                hensive            
    Common Shares   Common   Capital   Income   Retained   Treasury    
(dollars in thousands)   Outstanding   Stock   Surplus   (Loss)   Earnings   Stock   Total
Balance as of December 31, 2017   42,401,443     $ 576   $ 561,161   $ (34,715 )   $ 1,512,218     $ (807,372 )   $ 1,231,868  
Net Income   -       -     -     -       54,040       -       54,040  
Other Comprehensive Loss   -       -     -     (8,905 )     -       -       (8,905 )

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

  -       -     -     (7,477 )     7,477       -       -  
Share-Based Compensation   -       -     1,867     -       -       -       1,867  

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

  121,299       1     570     -       252       1,128       1,951  
Common Stock Repurchased   (208,328 )     -     -     -       -       (17,541 )     (17,541 )
Cash Dividends Declared ($0.52 per share)   -       -     -     -       (22,087 )     -       (22,087 )
Balance as of March 31, 2018   42,314,414     $ 577   $ 563,598   $ (51,097 )   $ 1,551,900     $ (823,785 )   $ 1,241,193  
                             
Balance as of December 31, 2016   42,635,978     $ 576   $ 551,628   $ (33,906 )   $ 1,415,440     $ (772,201 )   $ 1,161,537  
Net Income   -       -     -     -       51,176       -       51,176  
Other Comprehensive Income   -       -     -     5,040       -       -       5,040  
Share-Based Compensation   -       -     1,735     -       -       -       1,735  

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

  235,803       -     535     -       (702 )     6,744       6,577  
Common Stock Repurchased   (135,749 )     -     -     -       -       (11,509 )     (11,509 )
Cash Dividends Declared ($0.50 per share)   -       -     -     -       (21,419 )     -       (21,419 )
Balance as of March 31, 2017   42,736,032     $ 576   $ 553,898   $ (28,866 )   $ 1,444,495     $ (776,966 )   $ 1,193,137  
                             
                                   
Bank of Hawaii Corporation and Subsidiaries  
Average Balances and Interest Rates - Taxable-Equivalent Basis   Table 7  
      Three Months Ended   Three Months Ended   Three Months Ended  
      March 31, 2018     December 31, 2017     March 31, 2017  
      Average   Income/   Yield/     Average   Income/   Yield/     Average   Income/   Yield/  
(dollars in millions)   Balance   Expense   Rate     Balance   Expense   Rate     Balance   Expense   Rate  
Earning Assets                                          
Interest-Bearing Deposits in Other Banks   $ 3.0   $ -   2.34 %   $ 3.2   $ -   0.46 %   $ 3.3   $ -   0.57 %
Funds Sold     204.7     0.8   1.48       221.0     0.7   1.27       544.1     0.9   0.65  
Investment Securities                                          
  Available-for-Sale                                          
  Taxable     1,595.1     8.9   2.23       1,669.7     8.5   2.05       1,625.4     7.5   1.87  
  Non-Taxable     604.7     4.1   2.74       619.0     5.1   3.29       660.7     5.4   3.26  
  Held-to-Maturity                                          
  Taxable     3,631.2     19.8   2.18       3,775.6     20.3   2.15       3,589.8     18.2   2.03  
  Non-Taxable     238.0     1.9   3.18       239.0     2.3   3.87       241.8     2.4   3.89  
Total Investment Securities     6,069.0     34.7   2.29       6,303.3     36.2   2.30       6,117.7     33.5   2.19  
Loans Held for Sale     14.1     0.1   3.76       15.9     0.2   4.02       30.4     0.3   3.99  
Loans and Leases 1                                          
  Commercial and Industrial     1,280.9     11.8   3.73       1,284.5     11.7   3.62       1,263.7     10.5   3.38  
  Commercial Mortgage     2,096.4     20.6   3.99       2,063.2     20.2   3.89       1,881.5     17.5   3.76  
  Construction     189.4     2.1   4.45       213.8     2.6   4.78       259.1     2.9   4.54  
  Commercial Lease Financing     179.6     1.0   2.21       202.6     1.3   2.56       208.7     1.1   2.18  
  Residential Mortgage     3,478.2     33.3   3.83       3,420.0     32.6   3.81       3,201.7     30.9   3.86  
  Home Equity     1,595.4     14.6   3.70       1,552.4     14.3   3.65       1,367.4     12.0   3.56  
  Automobile     541.5     5.6   4.19       516.3     5.8   4.43       461.7     5.8   5.04  
  Other 2     442.4     8.6   7.91       435.9     8.5   7.80       376.6     7.3   7.89  
Total Loans and Leases     9,803.8     97.6   4.02       9,688.7     97.0   3.98       9,020.4     88.0   3.94  
Other     40.7     0.3   2.95       40.6     0.3   2.67       40.1     0.2   2.30  
Total Earning Assets 3     16,135.3     133.5   3.33       16,272.7     134.4   3.29       15,756.0     122.9   3.14  
Cash and Due from Banks     228.6               229.5               132.2          
Other Assets     593.5               582.4               546.4          
Total Assets   $ 16,957.4             $ 17,084.6             $ 16,434.6          
                                             
Interest-Bearing Liabilities                                          
Interest-Bearing Deposits                                          
  Demand   $ 2,978.1     0.8   0.10     $ 2,877.7     0.5   0.06     $ 2,866.4     0.3   0.04  
  Savings     5,366.3     2.1   0.16       5,396.9     1.9   0.14       5,406.2     1.3   0.09  
  Time     1,713.5     4.7   1.11       1,767.9     4.6   1.03       1,313.7     2.1   0.65  
Total Interest-Bearing Deposits     10,057.9     7.6   0.31       10,042.5     7.0   0.28       9,586.3     3.7   0.16  
Short-Term Borrowings     19.1     0.1   1.45       25.0     0.1   1.27       9.5     -   0.15  
Securities Sold Under Agreements to Repurchase     505.3     4.5   3.61       505.3     4.6   3.61       512.2     5.2   4.05  
Other Debt     257.1     1.0   1.54       267.6     1.1   1.66       267.9     1.1   1.66  
Total Interest-Bearing Liabilities     10,839.4     13.2   0.49       10,840.4     12.8   0.47       10,375.9     10.0   0.39  
Net Interest Income       $ 120.3             $ 121.6             $ 112.9      
  Interest Rate Spread           2.84 %       2.82 %       2.75 %
  Net Interest Margin           3.00 %       2.98 %       2.89 %
Noninterest-Bearing Demand Deposits     4,662.4               4,770.7               4,632.6          
Other Liabilities     220.0               242.9               248.8          
Shareholders' Equity     1,235.6               1,230.6               1,177.3          
Total Liabilities and Shareholders' Equity   $ 16,957.4             $ 17,084.6             $ 16,434.6          
                                             
                                             
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% for 2018 and 35% for 2017, of $1,344,000 for the three months ended March 31, 2018 and $2,808,000 and $3,061,000 for the three months ended December 31, 2017 and March 31, 2017, respectively.

 
     
             
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis   Table 8a
    Three Months Ended March 31, 2018
    Compared to December 31, 2017
(dollars in millions)   Volume 1   Rate 1   Total
Change in Interest Income:            
Funds Sold   $ -     $ 0.1     $ 0.1  
Investment Securities            
Available-for-Sale            
Taxable     (0.4 )     0.8       0.4  
Non-Taxable     (0.1 )     (0.9 )     (1.0 )
Held-to-Maturity            
Taxable     (0.8 )     0.3       (0.5 )
Non-Taxable     -       (0.4 )     (0.4 )
Total Investment Securities     (1.3 )     (0.2 )     (1.5 )
Loans Held for Sale     (0.1 )     -       (0.1 )
Loans and Leases            
Commercial and Industrial     -       0.1       0.1  
Commercial Mortgage     0.1       0.3       0.4  
Construction     (0.3 )     (0.2 )     (0.5 )
Commercial Lease Financing     (0.1 )     (0.2 )     (0.3 )
Residential Mortgage     0.5       0.2       0.7  
Home Equity     0.2       0.1       0.3  
Automobile     0.2       (0.4 )     (0.2 )
Other 2     -       0.1       0.1  
Total Loans and Leases     0.6       -       0.6  
Total Change in Interest Income     (0.8 )     (0.1 )     (0.9 )
             
Change in Interest Expense:            
Interest-Bearing Deposits            
Demand     -       0.3       0.3  
Savings     -       0.2       0.2  
Time     (0.2 )     0.3       0.1  
Total Interest-Bearing Deposits     (0.2 )     0.8       0.6  
Securities Sold Under Agreements to Repurchase     -       (0.1 )     (0.1 )
Other Debt     -       (0.1 )     (0.1 )
Total Change in Interest Expense     (0.2 )     0.6       0.4  
             
Change in Net Interest Income   $ (0.6 )   $ (0.7 )   $ (1.3 )
             
             
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 March 31, 2018
    Compared to March 31, 2017
(dollars in millions)   Volume 1   Rate 1   Total
Change in Interest Income:            
Funds Sold   $ (0.8 )   $ 0.7     $ (0.1 )
Investment Securities            
Available-for-Sale            
Taxable     -       1.4       1.4  
Non-Taxable     (0.5 )     (0.8 )     (1.3 )
Held-to-Maturity            
Taxable     0.2       1.4       1.6  
Non-Taxable     -       (0.5 )     (0.5 )
Total Investment Securities     (0.3 )     1.5       1.2  
Loans Held for Sale     (0.2 )     -       (0.2 )
Loans and Leases            
Commercial and Industrial     0.2       1.1       1.3  
Commercial Mortgage     2.0       1.1       3.1  
Construction     (0.8 )     -       (0.8 )
Commercial Lease Financing     (0.1 )     -       (0.1 )
Residential Mortgage     2.6       (0.2 )     2.4  
Home Equity     2.1       0.5       2.6  
Automobile     0.9       (1.1 )     (0.2 )
Other 2     1.3       -       1.3  
Total Loans and Leases     8.2       1.4       9.6  
Other     -       0.1       0.1  
Total Change in Interest Income     6.9       3.7       10.6  
             
Change in Interest Expense:            
Interest-Bearing Deposits            
Demand     -       0.5       0.5  
Savings     -       0.8       0.8  
Time     0.8       1.8       2.6  
Total Interest-Bearing Deposits     0.8       3.1       3.9  
Short-Term Borrowings     -       0.1       0.1  
Securities Sold Under Agreements to Repurchase     (0.1 )     (0.6 )     (0.7 )
Other Debt     -       (0.1 )     (0.1 )
Total Change in Interest Expense     0.7       2.5       3.2  
             
Change in Net Interest Income   $ 6.2     $ 1.2     $ 7.4  
             
             
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
     
             
Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits   Table 9
    Three Months Ended
    March 31,   December 31,   March 31,
(dollars in thousands)   2018   2017   2017
Salaries   $ 32,704   $ 31,132   $ 29,425
Incentive Compensation     5,178     7,078     5,774
Share-Based Compensation     2,081     3,040     2,303
Commission Expense     954     1,427     1,836
Retirement and Other Benefits     4,841     4,178     4,604
Payroll Taxes     4,172     2,301     3,944
Medical, Dental, and Life Insurance     3,461     2,503     3,279
Separation Expense     1,031     39     -
Total Salaries and Benefits   $ 54,422   $ 51,698   $ 51,165
             

Note: Certain prior period information has been reclassified to conform to current presentation.

 
                 
Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances   Table 10
      March 31,   December 31,   September 30,   June 30,   March 31,
(dollars in thousands)   2018   2017   2017   2017   2017
Commercial                    
  Commercial and Industrial   $ 1,329,096   $ 1,279,347   $ 1,252,238   $ 1,241,953   $ 1,250,006
  Commercial Mortgage     2,097,339     2,103,967     2,050,998     2,009,886     1,909,064
  Construction     186,530     202,253     232,487     248,030     262,660
  Lease Financing     179,771     180,931     204,240     205,043     208,765
Total Commercial     3,792,736     3,766,498     3,739,963     3,704,912     3,630,495
Consumer                    
  Residential Mortgage     3,505,239     3,466,773     3,366,634     3,317,179     3,224,206
  Home Equity     1,601,698     1,585,455     1,528,353     1,473,123     1,411,489
  Automobile     558,468     528,474     506,102     484,092     468,078
  Other 1     458,487     449,747     432,904     408,307     379,541
Total Consumer     6,123,892     6,030,449     5,833,993     5,682,701     5,483,314
Total Loans and Leases   $ 9,916,628   $ 9,796,947   $ 9,573,956   $ 9,387,613   $ 9,113,809
                       
                       
Deposits                    
      March 31,   December 31,   September 30,   June 30,   March 31,
(dollars in thousands)   2018   2017   2017   2017   2017
Consumer   $ 7,665,926   $ 7,478,228   $ 7,303,546   $ 7,278,536   $ 7,196,781
Commercial     5,897,194     5,973,763     6,091,800     5,903,639     6,051,721
Public and Other     1,394,013     1,431,977     1,652,814     1,602,474     1,228,031
Total Deposits   $ 14,957,133   $ 14,883,968   $ 15,048,160   $ 14,784,649   $ 14,476,533
                       
1 Comprised of other revolving credit, installment, and lease financing.
             
                     
Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More   Table 11
        March 31,   December 31,   September 30,   June 31,   March 31,
(dollars in thousands)   2018   2017   2017   2017   2017
Non-Performing Assets                    
Non-Accrual Loans and Leases                    
  Commercial                    
    Commercial and Industrial   $ 986     $ 448     $ 901     $ 175     $ 228  
    Commercial Mortgage     1,367       1,398       1,425       1,460       973  
  Total Commercial     2,353       1,846       2,326       1,635       1,201  
  Consumer                    
    Residential Mortgage     6,725       9,243       9,188       9,337       11,756  
    Home Equity     3,890       3,991       4,128       3,405       3,517  
  Total Consumer     10,615       13,234       13,316       12,742       15,273  
Total Non-Accrual Loans and Leases     12,968       15,080       15,642       14,377       16,474  
Foreclosed Real Estate     2,768       1,040       1,393       1,991       2,529  
Total Non-Performing Assets   $ 15,736     $ 16,120     $ 17,035     $ 16,368     $ 19,003  
                         
Accruing Loans and Leases Past Due 90 Days or More    
Commercial                    
  Commercial and Industrial   $ -     $ -     $ 5     $ -     $ -  
Total Commercial     -       -       5       -       -  
Consumer                    
  Residential Mortgage   $ 2,927     $ 2,703     $ 2,933     $ 2,269     $ 2,313  
  Home Equity     3,013       1,624       1,392       2,343       1,133  
  Automobile     333       886       806       539       673  
  Other 1     1,895       1,934       1,528       1,859       1,738  
Total Consumer     8,168       7,147       6,659       7,010       5,857  
Total Accruing Loans and Leases Past Due 90 Days or More   $ 8,168     $ 7,147     $ 6,664     $ 7,010     $ 5,857  

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

  $ 56,743     $ 55,672     $ 55,038     $ 53,158     $ 52,965  
Total Loans and Leases   $ 9,916,628     $ 9,796,947     $ 9,573,956     $ 9,387,613     $ 9,113,809  
                         
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases     0.13 %     0.15 %     0.16 %     0.15 %     0.18 %
                         

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

    0.16 %     0.16 %     0.18 %     0.17 %     0.21 %
                         

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

    0.06 %     0.05 %     0.06 %     0.04 %     0.03 %
                         

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

    0.22 %     0.24 %     0.25 %     0.26 %     0.32 %
                         

Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases and Foreclosed Real Estate

    0.24 %     0.24 %     0.25 %     0.25 %     0.27 %
                         
Quarter to Quarter Changes in Non-Performing Assets                    
Balance at Beginning of Quarter   $ 16,120     $ 17,035     $ 16,368     $ 19,003     $ 19,761  
Additions     2,332       2,109       2,212       1,572       1,221  
Reductions                    
  Payments     (1,251 )     (368 )     (199 )     (497 )     (1,017 )
  Return to Accrual Status     (1,270 )     (1,779 )     (305 )     (1,370 )     (645 )
  Sales of Foreclosed Real Estate     -       (353 )     (951 )     (1,883 )     -  
  Charge-offs/Write-downs     (195 )     (524 )     (90 )     (457 )     (317 )
Total Reductions     (2,716 )     (3,024 )     (1,545 )     (4,207 )     (1,979 )
Balance at End of Quarter   $ 15,736     $ 16,120     $ 17,035     $ 16,368     $ 19,003  
                         
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
        March 31,   December 31,   March 31,
(dollars in thousands)   2018   2017     2017
Balance at Beginning of Period   $ 114,168     $ 113,703       $ 110,845  
Loans and Leases Charged-Off              
  Commercial              
    Commercial and Industrial     (206 )     (499 )       (174 )
  Consumer              
    Residential Mortgage     (97 )     (4 )       (183 )
    Home Equity     (91 )     (221 )       (363 )
    Automobile     (2,254 )     (2,014 )       (2,290 )
    Other 1     (3,340 )     (3,108 )       (2,694 )
Total Loans and Leases Charged-Off     (5,988 )     (5,846 )       (5,704 )
Recoveries on Loans and Leases Previously Charged-Off              
  Commercial              
    Commercial and Industrial     328       284         336  
    Lease Financing     -       1         -  
  Consumer              
    Residential Mortgage     220       182         104  
    Home Equity     625       498         508  
    Automobile     599       576         620  
    Other 1     683       520         527  
Total Recoveries on Loans and Leases Previously Charged-Off     2,455       2,061         2,095  
Net Loans and Leases Charged-Off     (3,533 )     (3,785 )       (3,609 )
Provision for Credit Losses     4,125       4,250         4,400  
Provision for Unfunded Commitments     -       -         -  
Balance at End of Period 2   $ 114,760     $ 114,168       $ 111,636  
                   
Components              
Allowance for Loan and Lease Losses   $ 107,938     $ 107,346       $ 105,064  
Reserve for Unfunded Commitments     6,822       6,822         6,572  
Total Reserve for Credit Losses   $ 114,760     $ 114,168       $ 111,636  
                   
Average Loans and Leases Outstanding   $ 9,803,753     $ 9,688,710       $ 9,020,351  
                   

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

    0.15 %     0.15 %       0.16 %
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding     1.09 %     1.10 %       1.15 %
                   
1 Comprised of other revolving credit, installment, and lease financing.
2 Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.
 
                 
Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information   Table 13
            Investment        
            Services and        
    Retail   Commercial   Private   Treasury   Consolidated
(dollars in thousands)   Banking   Banking   Banking   and Other   Total
Three Months Ended March 31, 2018                    
Net Interest Income   $ 64,397     $ 42,898     $ 9,887     $ 1,774     $ 118,956  
Provision for Credit Losses     3,743       (151 )     (60 )     593       4,125  
Net Interest Income After Provision for Credit Losses     60,654       43,049       9,947       1,181       114,831  
Noninterest Income     19,253       5,642       13,670       5,470       44,035  
Noninterest Expense     (54,599 )     (20,332 )     (16,207 )     (3,246 )     (94,384 )
Income Before Provision for Income Taxes     25,308       28,359       7,410       3,405       64,482  
Provision for Income Taxes     (6,291 )     (6,824 )     (1,954 )     4,627       (10,442 )
Net Income   $ 19,017     $ 21,535     $ 5,456     $ 8,032     $ 54,040  
Total Assets as of March 31, 2018   $ 6,041,271     $ 3,771,678     $ 332,454     $ 6,990,627     $ 17,136,030  
                     
                     
Three Months Ended March 31, 2017                    
Net Interest Income   $ 65,158     $ 41,931     $ 6,650     $ (3,867 )   $ 109,872  
Provision for Credit Losses     3,801       (188 )     (5 )     792       4,400  
Net Interest Income After Provision for Credit Losses     61,357       42,119       6,655       (4,659 )     105,472  
Noninterest Income     20,925       5,438       14,549       15,004       55,916  
Noninterest Expense     (52,260 )     (18,355 )     (15,471 )     (2,482 )     (88,568 )
Income Before Provision for Income Taxes     30,022       29,202       5,733       7,863       72,820  
Provision for Income Taxes     (10,673 )     (10,256 )     (2,121 )     1,406       (21,644 )
Net Income   $ 19,349     $ 18,946     $ 3,612     $ 9,269     $ 51,176  
Total Assets as of March 31, 2017   $ 5,438,421     $ 3,577,524     $ 288,178     $ 7,360,092     $ 16,664,215  
                     
                           
Bank of Hawaii Corporation and Subsidiaries  
Selected Quarterly Financial Data   Table 14  
    Three Months Ended  
    March 31,     December 31,   September 30,   June 30,   March 31,  
(dollars in thousands, except per share amounts)   2018     2017   2017   2017   2017  
Quarterly Operating Results                              
Interest Income                              
Interest and Fees on Loans and Leases   $ 97,634       $ 96,974       $ 94,621       $ 90,909       $ 87,937  
Income on Investment Securities                              
Available-for-Sale     12,141         11,866         11,987         11,835         11,084  
Held-to-Maturity     21,296         21,782         20,334         19,918         19,706  
Deposits     18         3         5         2         5  
Funds Sold     757         717         1,579         696         890  
Other     300         271         235         208         230  
Total Interest Income     132,146         131,613         128,761         123,568         119,852  
Interest Expense                              
Deposits     7,581         6,980         6,663         4,998         3,691  
Securities Sold Under Agreements to Repurchase     4,564         4,664         4,664         5,079         5,185  
Funds Purchased     53         81         -         39         3  
Short-Term Borrowings     16         -         -         64         -  
Other Debt     976         1,118         1,117         1,109         1,101  
Total Interest Expense     13,190         12,843         12,444         11,289         9,980  
Net Interest Income     118,956         118,770         116,317         112,279         109,872  
Provision for Credit Losses     4,125         4,250         4,000         4,250         4,400  
Net Interest Income After Provision for Credit Losses     114,831         114,520         112,317         108,029         105,472  
Noninterest Income                              
Trust and Asset Management     11,181         11,105         11,050         11,796         11,479  
Mortgage Banking     2,145         2,593         3,237         3,819         3,300  
Service Charges on Deposit Accounts     7,129         8,053         8,188         8,009         8,325  
Fees, Exchange, and Other Service Charges     14,333         13,784         13,764         13,965         13,332  
Investment Securities Gains (Losses), Net     (666 )       (617 )       (566 )       (520 )       12,133  
Annuity and Insurance     1,206         1,273         1,429         2,161         1,995  
Bank-Owned Life Insurance     1,842         1,609         1,861         1,550         1,497  
Other     6,865         4,055         3,447         4,456         3,855  
Total Noninterest Income     44,035         41,855         42,410         45,236         55,916  
Noninterest Expense                              
Salaries and Benefits     54,422         51,698         51,190         49,676         51,165  
Net Occupancy     8,534         8,510         7,727         8,131         8,168  
Net Equipment     5,527         5,454         5,417         5,706         5,501  
Data Processing     3,891         4,310         3,882         3,881         3,410  
Professional Fees     2,773         3,266         3,044         2,592         2,779  
FDIC Insurance     2,157         2,253         2,107         2,097         2,209  
Other     17,080         16,845         15,231         16,106         15,336  
Total Noninterest Expense     94,384         92,336         88,598         88,189         88,568  
Income Before Provision for Income Taxes     64,482         64,039         66,129         65,076         72,820  
Provision for Income Taxes     10,442         21,086         20,248         20,414         21,644  
Net Income   $ 54,040       $ 42,953       $ 45,881       $ 44,662       $ 51,176  
                               
Basic Earnings Per Share   $ 1.29       $ 1.02       $ 1.09       $ 1.05       $ 1.21  
Diluted Earnings Per Share   $ 1.28       $ 1.01       $ 1.08       $ 1.05       $ 1.20  
                               
Balance Sheet Totals                              
Loans and Leases   $ 9,916,628       $ 9,796,947       $ 9,573,956       $ 9,387,613       $ 9,113,809  
Total Assets     17,136,030         17,089,052         17,268,302         16,981,292         16,664,215  
Total Deposits     14,957,133         14,883,968         15,048,160         14,784,649         14,476,533  
Total Shareholders' Equity     1,241,193         1,231,868         1,227,893         1,213,757         1,193,137  
                               
Performance Ratios                              
Return on Average Assets     1.29   %     1.00   %     1.07   %     1.09   %     1.26 %
Return on Average Shareholders' Equity     17.74         13.85         14.89         14.87         17.63  
Efficiency Ratio 1     57.91         57.49         55.82         55.99         53.42  
Net Interest Margin 2     3.00         2.98         2.92         2.92         2.89  
                               
                               
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.
Note: Certain prior period information has been reclassified to conform to current presentation.
         
                                         
Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends   Table 15
    Two Months Ended       Year Ended
($ in millions; jobs in thousands)   February 28, 2018       December 31, 2017   December 31, 2016
Hawaii Economic Trends                                            
State General Fund Revenues 1   $ 1,233.5   10.4   %   $ 6,485.5         4.3   %   $ 6,215.4       3.6   %
General Excise and Use Tax Revenue 1   $ 675.8   17.3   %   $ 3,349.8         4.5   %   $ 3,205.7       2.0   %
Jobs 2     669.4             668.2                   669.4            
                                             
                        March 31,       December 31,
(spot rates)                       2018       2017   2016
Unemployment 3                                            
Statewide, seasonally adjusted                       2.1   %     2.1   %   2.9   %
                                             
Oahu                       1.8         1.7       2.4    
Island of Hawaii                       2.1         2.0       3.1    
Maui                       2.0         1.8       2.7    
Kauai                       1.7         1.7       2.8    
                                             
                March 31,     December 31,
(percentage change, except months of inventory)       2018     2017   2016   2015
Housing Trends (Single Family Oahu) 4                                            
Median Home Price                 2.0     %   2.7   %     5.0   %   3.7   %
Home Sales Volume (units)                 (0.4 )   %   6.3   %     6.5   %   5.2   %
Months of Inventory                 2.1         2.1         2.5       2.6    
                                             
                Monthly Visitor Arrivals,   Percentage Change
(in thousands)               Not Seasonally Adjusted   from Previous Year
Tourism 5                                            
                                             
February 28, 2018                       778.6               10.3    
January 31, 2018                       796.5               5.4    
December 31, 2017                       880.4               6.3    
November 30, 2017                       748.3               7.3    
October 31, 2017                       737.0               2.8    
September 30, 2017                       701.8               5.1    
August 31, 2017                       818.6               4.8    
July 31, 2017                       891.9               6.8    
June 30, 2017                       835.9               4.5    
May 31, 2017                       751.2               4.5    
April 30, 2017                       753.0               7.5    
March 31, 2017                       802.8               2.1    
February 28, 2017                       706.1               2.5    
January 31, 2017                       756.0               4.9    
December 31, 2016                       828.2               3.6    
November 30, 2016                       697.1               4.7    
October 31, 2016                       717.0               4.3    
September 30, 2016                       667.6               3.1    
August 31, 2016                       780.7               3.1    
July 31, 2016                       835.4               2.1    
June 30, 2016                       800.3               4.2    
May 31, 2016                       718.9               1.3    
April 30, 2016                       700.6               3.4    
March 31, 2016                       786.3               0.8    
February 29, 2016                       688.8               4.1    
January 31, 2016                       721.0               6.2    
                                             
                                             
1 Source: Hawaii Department of Business, Economic Development & Tourism
2 Source: U. S. Bureau of Labor Statistics
3 Source: Hawaii Department of Labor and Industrial Relations, County jobs data as of February 28, 2018 and not seasonally adjusted.
4 Source: Honolulu Board of REALTORS
5 Source: Hawaii Tourism Authority
Note: Certain prior period information has been revised.
                                 

 

Source: Bank of Hawaii Corporation

Bank of Hawaii Corporation
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or
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