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Bank of Hawaii Corporation First Quarter 2019 Financial Results
  • Diluted Earnings Per Share $1.43
  • Net Income $58.8 Million
  • Board of Directors Increases Dividend to $0.65 Per Share

HONOLULU--(BUSINESS WIRE)--Apr. 22, 2019-- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $1.43 for the first quarter of 2019, an increase from diluted earnings per share of $1.30 in the previous quarter and $1.28 in the same quarter last year. Net income for the first quarter of 2019 was $58.8 million, an increase of $4.9 million compared with net income of $53.9 million in the fourth quarter of 2018 and up $4.8 million from net income of $54.0 million in the first quarter of 2018.

“We were pleased with our financial performance during the first quarter of 2019,” said Peter S. Ho, Chairman, President, and CEO. “We had growth in both loans and deposits, our net interest margin expanded, asset quality remained strong, and expenses were well controlled.”

The return on average assets for the first quarter of 2019 was 1.38 percent, up from 1.26 percent during the previous quarter and 1.29 percent in the same quarter last year. The return on average equity for the first quarter of 2019 was 18.81 percent, up from 17.05 percent in the fourth quarter of 2018 and 17.74 percent in the first quarter of 2018.

Financial Highlights

Net interest income, on a taxable-equivalent basis, for the first quarter of 2019 was $125.8 million, an increase of $0.6 million from net interest income of $125.2 million in the fourth quarter of 2018 and an increase of $5.5 million from net interest income of $120.3 million in the first quarter of 2018. The net interest margin was 3.12 percent for the first quarter of 2019, up 2 basis points compared with the net interest margin of 3.10 percent in the previous quarter and up 12 basis points from the net interest margin of 3.00 percent for the first quarter last year. Analyses of the changes in net interest income are included in Tables 8a and 8b.

Results for the first quarter of 2019 included a provision for credit losses of $3.0 million compared with a provision for credit losses of $2.0 million in the fourth quarter of 2018 and $4.1 million in the first quarter of 2018. The lower provision for credit losses during the fourth quarter of 2018 was largely due to the release of credit loss reserves related to the sale of the credit card portfolio.

Noninterest income was $43.7 million in the first quarter of 2019, an increase of $1.6 million compared with noninterest income of $42.1 million in the fourth quarter of 2018 and a decrease of $0.3 million compared with noninterest income of $44.0 million in the first quarter of 2018. Noninterest income in the first quarter of 2019 included a $1.4 million commission related to insurance products offered through a third-party administrator Noninterest income in the first quarter of 2018 included $2.8 million from a low-income housing investment sale. There were no significant items in noninterest income during the fourth quarter of 2018.

Noninterest expense was $93.1 million in the first quarter of 2019, a decrease of $2.8 million compared with noninterest expense of $95.9 million in the fourth quarter of 2018 and a decrease of $1.3 million from noninterest expense of $94.4 million in the same quarter last year. Noninterest expense in the first quarter of 2019 included seasonal payroll expenses of approximately $2.7 million. Noninterest expense in the fourth quarter of 2018 included $3.0 million in one-time significant items related to a medical expense, an operational loss, and legal expenses. Noninterest expense in the first quarter of 2018 included seasonal payroll expenses of approximately $2.5 million in addition to a legal reserve of $2.0 million. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The efficiency ratio during the first quarter of 2019 declined to 55.22 percent compared with 57.75 percent in the previous quarter and 57.91 percent in the same quarter last year.

The effective tax rate for the first quarter of 2019 was 18.85 percent compared with an effective tax rate of 20.92 percent in the previous quarter and 16.19 percent during the same quarter last year. The first quarter of 2019 included tax benefits of $1.9 million related to a commercial customer’s exercise of an early-buy-out option on a leveraged lease. There were no significant items impacting the tax rate during the fourth quarter of 2018. The tax rate during the first quarter of 2018 was favorably impacted by a $2.0 million adjustment to the Company’s low-income housing investments.

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 asset quality remained strong during the first quarter of 2019. Total non-performing assets were $17.9 million at March 31, 2019, compared with non-performing assets of $12.9 million at December 31, 2018 and $15.7 million at March 31, 2018. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.17 percent at the end of the first quarter of 2019, compared with 0.12 percent at the end of the fourth quarter of 2018 and 0.16 percent at the end of the first quarter last year.

Accruing loans and leases past due 90 days or more were $6.1 million at March 31, 2019, compared with $6.6 million at December 31, 2018 and $8.2 million at March 31, 2018. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $48.6 million at March 31, 2019, down from $48.7 million at December 31, 2018 and $56.7 million at March 31, 2018. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loans and leases charged off during the first quarter of 2019 were $3.7 million or 0.14 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $6.8 million during the quarter were partially offset by recoveries of $3.2 million. Net charge-offs during the fourth quarter of 2018 were $4.0 million or 0.15 percent annualized of total average loans and leases outstanding and were comprised of $6.9 million in charge-offs partially offset by recoveries of $2.9 million. Net charge-offs during the first quarter of 2018 were $3.5 million or 0.15 percent annualized of total average loans and leases outstanding and were comprised of $6.0 million in charge-offs partially offset by recoveries of $2.5 million.

The allowance for loan and lease losses was $106.0 million at March 31, 2019, a decrease from $106.7 million at December 31, 2018 and $107.9 million at March 31, 2018. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.01 percent at March 31, 2019 compared with 1.02 percent at December 31, 2018 and 1.09 percent at March 31, 2018. The reserve for unfunded commitments of $6.8 million at March 31, 2019 was unchanged from the prior quarter and the same quarter last year. Details of loan and lease charge-offs, recoveries, and components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets were $17.4 billion at March 31, 2019, up from total assets of $17.1 billion at December 31, 2018 and $17.1 billion at March 31, 2018. Average total assets were $17.2 billion during the first quarter of 2019, an increase from average total assets of $17.0 billion during the previous quarter and the same quarter last year.

The investment securities portfolio was $5.5 billion at March 31, 2019 compared with $5.5 billion at December 31, 2018 and $6.0 billion at March 31, 2018. The portfolio at March 31, 2019 remains largely comprised of securities issued by U.S. government agencies and includes $3.7 billion in securities held to maturity and $1.9 billion in securities available for sale.

Total loans and leases were $10.5 billion at March 31, 2019, an increase of $99.8 million or 1.0 percent from total loans and leases of $10.4 billion at December 31, 2018 and up $632.0 million or 6.4 percent from $9.9 billion at March 31, 2018. Average total loans and leases were $10.5 billion during the first quarter of 2019, an increase of 1.4 percent from average loans and leases of $10.3 billion during the previous quarter and up 6.8 percent from $9.8 billion during the same quarter last year. The commercial portfolio was $4.0 billion at the end of the first quarter of 2019, up $20.5 million or 0.5 percent from commercial loans of $4.0 billion at the end of the fourth quarter of 2018 and up $207.5 million or 5.5 percent from commercial loans of $3.8 billion at the end of the first quarter last year. The previously mentioned early buy out of a leveraged lease during the first quarter of 2019 reduced the commercial loan portfolio by $15.0 million in outstanding balances. Consumer loans were $6.5 billion at March 31, 2019, up $79.4 million or 1.2 percent from consumer loans of $6.5 billion at the end of the fourth quarter of 2018 and up $424.5 million or 6.9 percent from $6.1 billion at the end of the first quarter last year. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $15.3 billion at March 31, 2019, up $240.1 million or 1.6 percent from total deposits of $15.0 billion at December 31, 2018 and up $310.2 million or 2.1 percent from total deposits of $15.0 billion at March 31, 2018. Average total deposits were $15.0 billion during the first quarter of 2019, an increase of $191.9 million compared with average total deposits of $14.8 billion during the previous quarter and an increase of $251.1 million compared with average total deposits of $14.7 billion during the same quarter last year. Consumer deposits increased to $7.9 billion at March 31, 2019, up $218.1 million or 2.8 percent from consumer deposits of $7.7 billion at the end of the fourth quarter of 2018 and up $278.9 million or 3.6 percent from $7.7 billion at the end of the first quarter last year. Commercial deposits increased to $6.2 billion at March 31, 2019, up $63.9 million or 1.0 percent from commercial deposits of $6.1 billion at the end of the fourth quarter of 2018 and up $264.8 million or 4.5 percent from $5.9 billion at the end of the first quarter last year. Other deposits, including public funds, were $1.2 billion at March 31, 2019, down slightly from $1.2 billion at December 31, 2018 and down from $1.4 billion at March 31, 2018. Deposit balances are summarized in Tables 7 and 10.

Total shareholders’ equity was $1.3 billion at March 31, 2019, up slightly from December 31, 2018 and an increase from $1.2 billion at March 31, 2018. The Tier 1 Capital Ratio was 12.75 percent at March 31, 2019 compared with 13.07 percent at December 31, 2018 and 13.37 percent at March 31, 2018. The Tier 1 Leverage Ratio at March 31, 2019 was 7.46 percent compared with 7.60 percent at December 31, 2018 and 7.46 percent at March 31, 2018.

During the first quarter of 2019, the Company repurchased 513.4 thousand shares of common stock at a total cost of $39.9 million under its share repurchase program. The average cost was $77.79 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through March 31, 2019, the Company has repurchased 55.8 million shares and returned over $2.2 billion to shareholders at an average cost of $39.50 per share. Remaining buyback authority under the share repurchase program was $121.8 million at March 31, 2019. From April 1 through April 18, 2019 the Company repurchased an additional 114.0 thousand shares of common stock at an average cost of $80.79 per share.

The Company’s Board of Directors declared a quarterly cash dividend of $0.65 per share on the Company’s outstanding shares, an increase of 4.8 percent from the cash dividend of $0.62 per share in the previous quarter. The dividend will be payable on June 14, 2019 to shareholders of record at the close of business on May 31, 2019.

Hawaii Economy

General economic conditions in Hawaii remained healthy during the first quarter of 2019. The statewide seasonally-adjusted unemployment continues to remain low at 2.8 percent in March 2019, well below the 3.8 percent unemployment rate nationally.

The real estate market on Oahu remained strong during the first quarter of 2019 with a moderate decrease in home sales. Single-family home sales declined 5.7 percent and condominium sales declined 10.5 percent compared with sales during the first quarter of 2018. The median sales price of a single-family home increased 2.0 percent and the median sales price of a condominium decreased 3.2 percent compared with the same quarter last year. As of March 31, 2019, the inventory of single-family homes and condominiums on Oahu was 3.4 months and 3.6 months, respectively.

For the first two months of 2019, total visitor arrivals increased 1.8 percent although visitor spending declined 2.4 percent compared to the same period in 2018. Tourism during 2019 is expected to continue performing well. Scheduled air seats to Hawaii are projected to expand as Southwest Airlines began flying to Hawaii in March and Hawaiian Airlines began offering the first non-stop flights between Hawaii and Boston in April. 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 approximately 10:00 a.m. Hawaii Time on Monday, April 22, 2019. 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 4456158 when prompted. In addition, a replay will be available on the Company’s website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain “forward-looking statements,” such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation’s Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the U.S. Securities and Exchange Commission. We 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 website, 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)   2019     2018     2018  

For the Period:

                 
Operating Results                  
Net Interest Income   $ 124,837     $ 123,973     $ 118,956  
Provision for Credit Losses     3,000       2,000       4,125  
Total Noninterest Income     43,679       42,108       44,035  
Total Noninterest Expense     93,057       95,911       94,384  
Net Income     58,799       53,911       54,040  
Basic Earnings Per Share     1.44       1.30       1.29  
Diluted Earnings Per Share     1.43       1.30       1.28  
Dividends Declared Per Share     0.62       0.62       0.52  
                   
Performance Ratios                  
Return on Average Assets     1.38 %     1.26 %     1.29 %
Return on Average Shareholders' Equity     18.81       17.05       17.74  
Efficiency Ratio 1     55.22       57.75       57.91  
Net Interest Margin 2     3.12       3.10       3.00  
Dividend Payout Ratio 3     43.06       47.69       40.31  
Average Shareholders' Equity to Average Assets     7.35       7.39       7.29  
                   
Average Balances                  
Average Loans and Leases   $ 10,467,321     $ 10,320,051     $ 9,803,753  
Average Assets     17,236,059       16,988,550       16,957,430  
Average Deposits     14,971,404       14,779,511       14,720,266  
Average Shareholders' Equity     1,267,438       1,254,704       1,235,550  
                   
Per Share of Common Stock                  
Book Value   $ 30.91     $ 30.56     $ 29.33  
Tangible Book Value     30.14       29.80       28.59  
Market Value                  
Closing     78.87       67.32       83.10  
High     83.94       82.80       89.09  
Low     66.54       63.64       78.40  
                   
    March 31,     December 31,     March 31,  
    2019     2018     2018  

As of Period End:

                 
Balance Sheet Totals                  
Loans and Leases   $ 10,548,609     $ 10,448,774     $ 9,916,628  
Total Assets     17,446,413       17,143,974       17,136,030  
Total Deposits     15,267,310       15,027,242       14,957,133  
Other Debt     110,624       135,643       235,699  
Total Shareholders' Equity     1,269,690       1,268,200       1,241,193  
                   
Asset Quality                  
Non-Performing Assets   $ 17,925     $ 12,930     $ 15,736  
Allowance for Loan and Lease Losses     106,023       106,693       107,938  
Allowance to Loans and Leases Outstanding     1.01 %     1.02 %     1.09 %
                   
Capital Ratios                  
Common Equity Tier 1 Capital Ratio     12.75 %     13.07 %     13.37 %
Tier 1 Capital Ratio     12.75       13.07       13.37  
Total Capital Ratio     13.87       14.21       14.58  
Tier 1 Leverage Ratio     7.46       7.60       7.46  
Total Shareholders' Equity to Total Assets     7.28       7.40       7.24  
Tangible Common Equity to Tangible Assets 4     7.11       7.23       7.07  
Tangible Common Equity to Risk-Weighted Assets 4     12.28       12.52       12.80  
                   
Non-Financial Data                  
Full-Time Equivalent Employees     2,112       2,122       2,138  
Branches     69       69       69  
ATMs     385       382       377  
                   
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.”

Note: Total Capital Ratio was revised from 14.59% as of March 31, 2018.
 
 
Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures           Table 2
        March 31,   December 31,   March 31,
(dollars in thousands)   2019   2018   2018
                 
Total Shareholders' Equity   $ 1,269,690     $ 1,268,200     $ 1,241,193  

Less: Goodwill

    31,517       31,517       31,517  
Tangible Common Equity   $ 1,238,173     $ 1,236,683     $ 1,209,676  
                 
Total Assets   $ 17,446,413     $ 17,143,974     $ 17,136,030  
Less: Goodwill     31,517       31,517       31,517  
Tangible Assets   $ 17,414,896     $ 17,112,457     $ 17,104,513  
                 

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

  $ 10,079,858     $ 9,878,904     $ 9,452,847  
                 
Total Shareholders' Equity to Total Assets     7.28 %     7.40 %     7.24 %
Tangible Common Equity to Tangible Assets (Non-GAAP)     7.11 %     7.23 %     7.07 %
                 
Tier 1 Capital Ratio     12.75 %     13.07 %     13.37 %
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)     12.28 %     12.52 %     12.80 %
                 
Note: Risk-Weighted Assets was revised from $9,451,647 as of March 31, 2018.
         
 
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)   2019   2018   2018
Interest Income            
Interest and Fees on Loans and Leases   $ 108,511     $ 107,404     $ 97,634  
Income on Investment Securities            
Available-for-Sale     13,432       13,043       12,141  
Held-to-Maturity     21,921       21,482       21,296  
Deposits     15       10       18  
Funds Sold     1,444       727       757  
Other     319       352       300  
Total Interest Income     145,642       143,018       132,146  
Interest Expense            
Deposits     15,284       13,172       7,581  
Securities Sold Under Agreements to Repurchase     4,571       4,671       4,564  
Funds Purchased     157       440       53  
Short-Term Borrowings     36       88       16  
Other Debt     757       674       976  
Total Interest Expense     20,805       19,045       13,190  
Net Interest Income     124,837       123,973       118,956  
Provision for Credit Losses     3,000       2,000       4,125  
Net Interest Income After Provision for Credit Losses     121,837       121,973       114,831  
Noninterest Income            
Trust and Asset Management     10,761       10,558       11,181  
Mortgage Banking     2,287       2,148       2,145  
Service Charges on Deposit Accounts     7,364       7,562       7,129  
Fees, Exchange, and Other Service Charges     14,208       14,576       14,333  
Investment Securities Gains (Losses), Net     (835 )     (841 )     (666 )
Annuity and Insurance     2,578       1,409       1,206  
Bank-Owned Life Insurance     1,710       1,941       1,842  
Other     5,606       4,755       6,865  
Total Noninterest Income     43,679       42,108       44,035  
Noninterest Expense            
Salaries and Benefits     56,586       54,856       54,422  
Net Occupancy     7,594       8,918       8,534  
Net Equipment     6,833       6,364       5,527  
Data Processing     4,526       5,151       3,891  
Professional Fees     2,453       2,467       2,773  
FDIC Insurance     1,269       1,336       2,157  
Other     13,796       16,819       17,080  
Total Noninterest Expense     93,057       95,911       94,384  
Income Before Provision for Income Taxes     72,459       68,170       64,482  
Provision for Income Taxes     13,660       14,259       10,442  
Net Income   $ 58,799     $ 53,911     $ 54,040  
Basic Earnings Per Share   $ 1.44     $ 1.30     $ 1.29  
Diluted Earnings Per Share   $ 1.43     $ 1.30     $ 1.28  
Dividends Declared Per Share   $ 0.62     $ 0.62     $ 0.52  
Basic Weighted Average Shares     40,938,318       41,325,456       42,038,573  
Diluted Weighted Average Shares     41,213,453       41,601,649       42,358,425  
                         
             
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)   2019   2018   2018
Net Income   $ 58,799   $ 53,911     $ 54,040  
Other Comprehensive Income (Loss), Net of Tax:            
Net Unrealized Gains (Losses) on Investment Securities     6,919     11,169       (9,121 )
Defined Benefit Plans     246     (2,974 )     216  
Other Comprehensive Income (Loss)     7,165     8,195       (8,905 )
Comprehensive Income   $ 65,964   $ 62,106     $ 45,135  
                       
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition           Table 5
    March 31,   December 31,   March 31,
(dollars in thousands)   2019   2018   2018
Assets            
Interest-Bearing Deposits in Other Banks   $ 3,550     $ 3,028     $ 2,589  
Funds Sold     243,867       198,860       387,766  
Investment Securities            
Available-for-Sale     1,859,256       2,007,942       2,184,187  
Held-to-Maturity (Fair Value of $3,637,496; $3,413,994; and $3,711,149)     3,668,811       3,482,092       3,789,092  
Loans Held for Sale     17,909       10,987       23,548  
Loans and Leases     10,548,609       10,448,774       9,916,628  
Allowance for Loan and Lease Losses     (106,023 )     (106,693 )     (107,938 )
Net Loans and Leases     10,442,586       10,342,081       9,808,690  
Total Earning Assets     16,235,979       16,044,990       16,195,872  
Cash and Due from Banks     293,871       324,081       174,871  
Premises and Equipment, Net     159,344       151,837       137,201  
Operating Lease Right-of-Use Assets     104,166       -       -  
Accrued Interest Receivable     52,820       51,230       52,941  
Foreclosed Real Estate     3,225       1,356       2,768  
Mortgage Servicing Rights     24,149       24,310       24,493  
Goodwill     31,517       31,517       31,517  
Bank-Owned Life Insurance     285,155       283,771       280,537  
Other Assets     256,187       230,882       235,830  
Total Assets   $ 17,446,413     $ 17,143,974     $ 17,136,030  
             
Liabilities            
Deposits            
Noninterest-Bearing Demand   $ 4,595,915     $ 4,739,596     $ 4,759,777  
Interest-Bearing Demand     2,961,444       3,002,925       3,028,373  
Savings     5,946,881       5,539,199       5,397,291  
Time     1,763,070       1,745,522       1,771,692  
Total Deposits     15,267,310       15,027,242       14,957,133  
Short-Term Borrowings     -       199       -  
Securities Sold Under Agreements to Repurchase     504,299       504,296       505,293  
Other Debt     110,624       135,643       235,699  
Operating Lease Liabilities     111,230       -       -  
Retirement Benefits Payable     40,343       40,494       37,046  
Accrued Interest Payable     8,474       8,253       8,229  
Taxes Payable and Deferred Taxes     29,935       19,736       29,557  
Other Liabilities     104,508       139,911       121,880  
Total Liabilities     16,176,723       15,875,774       15,894,837  
Shareholders' Equity            
Common Stock ($.01 par value; authorized 500,000,000 shares;            
issued / outstanding: March 31, 2019 - 58,166,535 / 41,078,688;            
December 31, 2018 - 58,063,689 / 41,499,898;            
and March 31, 2018 - 58,051,646 / 42,314,414)     578       577       577  
Capital Surplus     574,594       571,704       563,598  
Accumulated Other Comprehensive Loss     (43,878 )     (51,043 )     (51,097 )
Retained Earnings     1,674,264       1,641,314       1,551,900  
Treasury Stock, at Cost (Shares: March 31, 2019 - 17,087,847;            
December 31, 2018 - 16,563,791; and March 31, 2018 - 15,737,232)     (935,868 )     (894,352 )     (823,785 )
Total Shareholders' Equity     1,269,690       1,268,200       1,241,193  
Total Liabilities and Shareholders' Equity   $ 17,446,413     $ 17,143,974     $ 17,136,030  
                         
                           
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, 2018   41,499,898     $ 577   $ 571,704   $ (51,043 )   $ 1,641,314     $ (894,352 )   $ 1,268,200  
Net Income   -       -     -     -       58,799       -       58,799  
Other Comprehensive Income   -       -     -     7,165       -       -       7,165  
Share-Based Compensation   -       -     2,274     -       -       -       2,274  

Common Stock Issued under Purchase and Equity Compensation Plans

  131,529       1     616     -       (203 )     1,673       2,087  
Common Stock Repurchased   (552,739 )     -     -     -       -       (43,189 )     (43,189 )
Cash Dividends Declared ($0.62 per share)   -       -     -     -       (25,646 )     -       (25,646 )
Balance as of March 31, 2019   41,078,688     $ 578   $ 574,594   $ (43,878 )   $ 1,674,264     $ (935,868 )   $ 1,269,690  
                             
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

  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  
                             
                                       
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, 2019     December 31, 2018     March 31, 2018  
      Average   Income/   Yield/     Average   Income/   Yield/     Average   Income/   Yield/  
(dollars in millions)   Balance   Expense   Rate     Balance   Expense   Rate     Balance   Expense   Rate  
Earning Assets                                          
Interest-Bearing Deposits in Other Banks   $ 3.0   $ -   2.05 %   $ 3.3   $ -   1.21 %   $ 3.0   $ -   2.34 %
Funds Sold     241.6     1.5   2.39       128.2     0.7   2.22       204.7     0.8   1.48  
Investment Securities                                          
Available-for-Sale                                          
Taxable     1,595.8     11.5   2.90       1,480.5     10.0   2.70       1,595.1     8.9   2.23  
Non-Taxable     279.1     2.4   3.45       556.4     3.8   2.77       604.7     4.1   2.74  
Held-to-Maturity                                          
Taxable     3,373.5     20.5   2.43       3,360.5     20.0   2.38       3,631.2     19.8   2.18  
Non-Taxable     234.1     1.8   3.15       235.1     1.9   3.16       238.0     1.9   3.18  
Total Investment Securities     5,482.5     36.2   2.65       5,632.5     35.7   2.53       6,069.0     34.7   2.29  
Loans Held for Sale     12.4     0.1   4.35       12.1     0.2   4.63       14.1     0.1   3.76  
Loans and Leases 1                                          
Commercial and Industrial     1,357.8     15.3   4.57       1,351.1     14.3   4.21       1,280.9     11.8   3.73  
Commercial Mortgage     2,310.4     24.9   4.36       2,256.0     24.2   4.25       2,096.4     20.6   3.99  
Construction     150.4     1.9   5.08       179.8     2.2   4.79       189.4     2.1   4.45  
Commercial Lease Financing     160.9     0.9   2.28       173.2     1.0   2.42       179.6     1.0   2.21  
Residential Mortgage     3,680.2     35.5   3.86       3,615.8     35.1   3.88       3,478.2     33.3   3.83  
Home Equity     1,690.0     16.1   3.87       1,652.4     15.7   3.78       1,595.4     14.6   3.70  
Automobile     668.2     6.0   3.66       641.8     6.0   3.73       541.5     5.6   4.19  
Other 2     449.4     7.9   7.13       450.0     8.8   7.72       442.4     8.6   7.91  
Total Loans and Leases     10,467.3     108.5   4.18       10,320.1     107.3   4.14       9,803.8     97.6   4.02  
Other     35.5     0.3   3.60       36.8     0.4   3.82       40.7     0.3   2.95  
Total Earning Assets 3     16,242.3     146.6   3.64       16,133.0     144.3   3.56       16,135.3     133.5   3.33  
Cash and Due from Banks     240.8               234.3               228.6          
Other Assets     753.0               621.3               593.5          
Total Assets   $ 17,236.1             $ 16,988.6             $ 16,957.4          
                                             
Interest-Bearing Liabilities                                          
Interest-Bearing Deposits                                          
Demand   $ 2,939.9     1.5   0.20     $ 2,888.3     1.5   0.20     $ 2,978.1     0.8   0.10  
Savings     5,760.8     6.7   0.47       5,494.5     4.5   0.32       5,366.3     2.1   0.16  
Time     1,703.4     7.1   1.69       1,800.7     7.2   1.59       1,713.5     4.7   1.11  
Total Interest-Bearing Deposits     10,404.1     15.3   0.60       10,183.5     13.2   0.51       10,057.9     7.6   0.31  
Short-Term Borrowings     31.1     0.2   2.49       89.6     0.5   2.31       19.1     0.1   1.45  
Securities Sold Under Agreements to Repurchase     504.3     4.6   3.63       504.3     4.7   3.62       505.3     4.5   3.61  
Other Debt     120.0     0.7   2.55       145.2     0.7   1.85       257.1     1.0   1.54  
Total Interest-Bearing Liabilities     11,059.5     20.8   0.76       10,922.6     19.1   0.69       10,839.4     13.2   0.49  
Net Interest Income       $ 125.8             $ 125.2             $ 120.3      
Interest Rate Spread           2.88 %       2.87 %       2.84 %
Net Interest Margin           3.12 %       3.10 %       3.00 %
Noninterest-Bearing Demand Deposits     4,567.3               4,596.0               4,662.4          
Other Liabilities     341.9               215.3               220.0          
Shareholders' Equity     1,267.4               1,254.7               1,235.6          
Total Liabilities and Shareholders' Equity   $ 17,236.1             $ 16,988.6             $ 16,957.4          
                                             
                                             
1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.

3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $981,000, $1,263,000, and $1,344,000 for the three months ended March 31, 2019, December 31, 2018, and March 31, 2018, respectively.

                 
             
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis           Table 8a
    Three Months Ended March 31, 2019
    Compared to December 31, 2018
(dollars in millions)   Volume 1   Rate 1   Total
Change in Interest Income:            
Funds Sold   $ 0.7     $ 0.1     $ 0.8  
Investment Securities            
Available-for-Sale            
Taxable     0.8       0.7       1.5  
Non-Taxable     (2.2 )     0.8       (1.4 )
Held-to-Maturity            
Taxable     0.1       0.4       0.5  
Non-Taxable     (0.1 )     -       (0.1 )
Total Investment Securities     (1.4 )     1.9       0.5  
Loans Held for Sale     -       (0.1 )     (0.1 )
Loans and Leases            
Commercial and Industrial     0.1       0.9       1.0  
Commercial Mortgage     0.3       0.4       0.7  
Construction     (0.4 )     0.1       (0.3 )
Commercial Lease Financing     (0.1 )     -       (0.1 )
Residential Mortgage     0.6       (0.2 )     0.4  
Home Equity     0.2       0.2       0.4  
Automobile     0.2       (0.2 )     -  
Other 2     (0.1 )     (0.8 )     (0.9 )
Total Loans and Leases     0.8       0.4       1.2  
Other     -       (0.1 )     (0.1 )
Total Change in Interest Income     0.1       2.2       2.3  
             
Change in Interest Expense:            
Interest-Bearing Deposits            
Savings     0.2       2.0       2.2  
Time     (0.5 )     0.4       (0.1 )
Total Interest-Bearing Deposits     (0.3 )     2.4       2.1  
Short-Term Borrowings     (0.4 )     0.1       (0.3 )
Securities Sold Under Agreements to Repurchase     -       (0.1 )     (0.1 )
Other Debt     (0.1 )     0.1       -  
Total Change in Interest Expense     (0.8 )     2.5       1.7  
             
Change in Net Interest Income   $ 0.9     $ (0.3 )   $ 0.6  
             
             
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, 2019
    Compared to March 31, 2018
(dollars in millions)   Volume 1   Rate 1   Total
Change in Interest Income:            
Funds Sold   $ 0.2     $ 0.5     $ 0.7  
Investment Securities            
Available-for-Sale            
Taxable     -       2.6       2.6  
Non-Taxable     (2.6 )     0.9       (1.7 )
Held-to-Maturity            
Taxable     (1.4 )     2.1       0.7  
Non-Taxable     (0.1 )     -       (0.1 )
Total Investment Securities     (4.1 )     5.6       1.5  
Loans and Leases            
Commercial and Industrial     0.8       2.7       3.5  
Commercial Mortgage     2.2       2.1       4.3  
Construction     (0.5 )     0.3       (0.2 )
Commercial Lease Financing     (0.1 )     -       (0.1 )
Residential Mortgage     2.0       0.2       2.2  
Home Equity     0.8       0.7       1.5  
Automobile     1.2       (0.8 )     0.4  
Other 2     0.2       (0.9 )     (0.7 )
Total Loans and Leases     6.6       4.3       10.9  
Other     (0.2 )     0.2       -  
Total Change in Interest Income     2.5       10.6       13.1  
             
Change in Interest Expense:            
Interest-Bearing Deposits            
Demand     -       0.7       0.7  
Savings     0.2       4.4       4.6  
Time     -       2.4       2.4  
Total Interest-Bearing Deposits     0.2       7.5       7.7  
Short-Term Borrowings     0.1       -       0.1  
Securities Sold Under Agreements to Repurchase     -       0.1       0.1  
Other Debt     (0.7 )     0.4       (0.3 )
Total Change in Interest Expense     (0.4 )     8.0       7.6  
             
Change in Net Interest Income   $ 2.9     $ 2.6     $ 5.5  
             
             
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
     
             
Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits           Table 9
    Three Months Ended
    March 31,   December 31,   March 31,
(dollars in thousands)   2019   2018   2018
Salaries   $ 32,480   $ 33,603   $ 32,704
Incentive Compensation     5,904     5,715     5,178
Share-Based Compensation     3,079     1,417     2,081
Commission Expense     930     1,158     954
Retirement and Other Benefits     5,107     4,369     4,841
Payroll Taxes     4,247     2,277     4,172
Medical, Dental, and Life Insurance     4,465     5,237     3,461
Separation Expense     374     1,080     1,031
Total Salaries and Benefits   $ 56,586   $ 54,856   $ 54,422
                   
                 
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)   2019   2018   2018   2018   2018
Commercial                    
Commercial and Industrial   $ 1,331,345   $ 1,331,149   $ 1,314,609   $ 1,282,967   $ 1,329,096
Commercial Mortgage     2,381,213     2,302,356     2,237,020     2,169,357     2,097,339
Construction     132,775     170,061     176,447     185,350     186,530
Lease Financing     154,919     176,226     172,232     178,598     179,771
Total Commercial     4,000,252     3,979,792     3,900,308     3,816,272     3,792,736
Consumer                    
Residential Mortgage     3,702,553     3,673,796     3,596,627     3,548,444     3,505,239
Home Equity     1,698,666     1,681,442     1,625,208     1,622,314     1,601,698
Automobile     676,730     658,133     625,086     592,705     558,468
Other 1     470,408     455,611     483,833     473,588     458,487
Total Consumer     6,548,357     6,468,982     6,330,754     6,237,051     6,123,892
Total Loans and Leases   $ 10,548,609   $ 10,448,774   $ 10,231,062   $ 10,053,323   $ 9,916,628
                       
                       
Deposits                    
      March 31,   December 31,   September 30,   June 30,   March 31,
(dollars in thousands)   2019   2018   2018   2018   2018
Consumer   $ 7,944,793   $ 7,726,731   $ 7,627,527   $ 7,672,435   $ 7,665,926
Commercial     6,162,042     6,098,186     5,967,343     5,921,414     5,897,194
Public and Other     1,160,475     1,202,325     1,248,465     1,349,509     1,394,013
Total Deposits   $ 15,267,310   $ 15,027,242   $ 14,843,335   $ 14,943,358   $ 14,957,133
                       
                       
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 30,   March 31,
(dollars in thousands)   2019   2018   2018   2018   2018
Non-Performing Assets                    
Non-Accrual Loans and Leases                    
Commercial                    
Commercial and Industrial   $ 393     $ 542     $ 1,205     $ 917     $ 986  
Commercial Mortgage     5,911       2,040       652       659       1,367  
Total Commercial     6,304       2,582       1,857       1,576       2,353  
Consumer                    
Residential Mortgage     5,599       5,321       6,359       6,722       6,725  
Home Equity     2,797       3,671       3,673       3,933       3,890  
Total Consumer     8,396       8,992       10,032       10,655       10,615  
Total Non-Accrual Loans and Leases     14,700       11,574       11,889       12,231       12,968  
Foreclosed Real Estate     3,225       1,356       1,909       2,926       2,768  
Total Non-Performing Assets   $ 17,925     $ 12,930     $ 13,798     $ 15,157     $ 15,736  
                         
Accruing Loans and Leases Past Due 90 Days or More                  
Commercial                    
Commercial and Industrial   $ 66     $ 10     $ -     $ 2     $ -  
Commercial Mortgage     -       -       -       5,680       -  
Total Commercial     66       10       -       5,682       -  
Consumer                    
Residential Mortgage   $ 903     $ 2,446     $ 2,426     $ 2,281     $ 2,927  
Home Equity     3,381       2,684       3,112       3,016       3,013  
Automobile     734       513       829       674       333  
Other 1     1,033       914       1,727       1,660       1,895  
Total Consumer     6,051       6,557       8,094       7,631       8,168  
Total Accruing Loans and Leases Past Due 90 Days or More   $ 6,117     $ 6,567     $ 8,094     $ 13,313     $ 8,168  
Restructured Loans on Accrual Status                    
and Not Past Due 90 Days or More   $ 48,571     $ 48,731     $ 49,462     $ 50,212     $ 56,743  
Total Loans and Leases   $ 10,548,609     $ 10,448,774     $ 10,231,062     $ 10,053,323     $ 9,916,628  
                         
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases     0.14 %     0.11 %     0.12 %     0.12 %     0.13 %
                         
Ratio of Non-Performing Assets to Total Loans and Leases                  
and Foreclosed Real Estate     0.17 %     0.12 %     0.13 %     0.15 %     0.16 %
                         
Ratio of Commercial Non-Performing Assets to Total Commercial Loans              
and Leases and Commercial Foreclosed Real Estate     0.16 %     0.06 %     0.05 %     0.04 %     0.06 %
                         
Ratio of Consumer Non-Performing Assets to Total Consumer Loans              
and Leases and Consumer Foreclosed Real Estate     0.18 %     0.16 %     0.19 %     0.22 %     0.22 %
                         
Ratio of Non-Performing Assets and Accruing Loans and Leases                  
Past Due 90 Days or More to Total Loans and Leases                  
and Foreclosed Real Estate     0.23 %     0.19 %     0.21 %     0.28 %     0.24 %
                         
Quarter to Quarter Changes in Non-Performing Assets                    
Balance at Beginning of Quarter   $ 12,930     $ 13,798     $ 15,157     $ 15,736     $ 16,120  
Additions     8,217       4,509       2,030       1,949       2,332  
Reductions                    
Payments     (989 )     (3,759 )     (415 )     (1,847 )     (1,251 )
Return to Accrual Status     (316 )     (605 )     (1,420 )     (126 )     (1,270 )
Sales of Foreclosed Real Estate     -       (653 )     (1,301 )     (421 )     -  
Charge-offs/Write-downs     (1,917 )     (360 )     (253 )     (134 )     (195 )
Total Reductions     (3,222 )     (5,377 )     (3,389 )     (2,528 )     (2,716 )
Balance at End of Quarter   $ 17,925     $ 12,930     $ 13,798     $ 15,157     $ 15,736  
                         

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)   2019   2018   2018
Balance at Beginning of Period   $ 113,515     $ 115,512     $ 114,168  
Loans and Leases Charged-Off            
Commercial            
Commercial and Industrial     (370 )     (365 )     (206 )
Commercial Mortgage     (1,616 )     -       -  
Consumer            
Residential Mortgage     (4 )     (1 )     (97 )
Home Equity     (295 )     (406 )     (91 )
Automobile     (1,753 )     (2,335 )     (2,254 )
Other 1     (2,790 )     (3,781 )     (3,340 )
Total Loans and Leases Charged-Off     (6,828 )     (6,888 )     (5,988 )
Recoveries on Loans and Leases Previously Charged-Off            
Commercial            
Commercial and Industrial     501       803       328  
Consumer            
Residential Mortgage     484       112       220  
Home Equity     588       367       625  
Automobile     881       949       599  
Other 1     704       660       683  
Total Recoveries on Loans and Leases Previously Charged-Off     3,158       2,891       2,455  
Net Loans and Leases Charged-Off     (3,670 )     (3,997 )     (3,533 )
Provision for Credit Losses     3,000       2,000       4,125  
Provision for Unfunded Commitments     -       -       -  
Balance at End of Period 2   $ 112,845     $ 113,515     $ 114,760  
                 
Components            
Allowance for Loan and Lease Losses   $ 106,023     $ 106,693     $ 107,938  
Reserve for Unfunded Commitments     6,822       6,822       6,822  
Total Reserve for Credit Losses   $ 112,845     $ 113,515     $ 114,760  
                 
Average Loans and Leases Outstanding   $ 10,467,321     $ 10,320,051     $ 9,803,753  
                 

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

    0.14 %     0.15 %     0.15 %
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding     1.01 %     1.02 %     1.09 %
                 
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, 2019                    
Net Interest Income   $ 66,154     $ 47,290     $ 10,198     $ 1,195     $ 124,837  
Provision for Credit Losses     2,241       1,446       (17 )     (670 )     3,000  
Net Interest Income After Provision for Credit Losses     63,913       45,844       10,215       1,865       121,837  
Noninterest Income     21,233       7,061       13,245       2,140       43,679  
Noninterest Expense     (52,524 )     (20,955 )     (16,903 )     (2,675 )     (93,057 )
Income Before Provision for Income Taxes     32,622       31,950       6,557       1,330       72,459  
Provision for Income Taxes     (8,105 )     (6,002 )     (1,729 )     2,176       (13,660 )
Net Income   $ 24,517     $ 25,948     $ 4,828     $ 3,506     $ 58,799  
Total Assets as of March 31, 2019   $ 6,454,127     $ 4,004,176     $ 341,979     $ 6,646,131     $ 17,446,413  
                     
                     
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  
                     
       
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)   2019     2018     2018     2018     2018  
Quarterly Operating Results                              
Interest Income                              
Interest and Fees on Loans and Leases   $ 108,511       $ 107,404       $ 104,248       $ 101,311       $ 97,634    
Income on Investment Securities                              
Available-for-Sale     13,432         13,043         12,588         12,380         12,141    
Held-to-Maturity     21,921         21,482         20,821         20,711         21,296    
Deposits     15         10         10         (4 )       18    
Funds Sold     1,444         727         1,393         846         757    
Other     319         352         364         341         300    
Total Interest Income     145,642         143,018         139,424         135,585         132,146    
Interest Expense                              

Deposits

    15,284         13,172         10,931         9,459         7,581    
Securities Sold Under Agreements to Repurchase     4,571         4,671         4,667         4,617         4,564    
Funds Purchased     157         440         33         83         53    
Short-Term Borrowings     36         88         28         13         16    
Other Debt     757         674         838         917         976    
Total Interest Expense     20,805         19,045         16,497         15,089         13,190    
Net Interest Income     124,837         123,973         122,927         120,496         118,956    
Provision for Credit Losses     3,000         2,000         3,800         3,500         4,125    
Net Interest Income After Provision for Credit Losses     121,837         121,973         119,127         116,996         114,831    
Noninterest Income                              
Trust and Asset Management     10,761         10,558         10,782         11,356         11,181    
Mortgage Banking     2,287         2,148         1,965         2,179         2,145    
Service Charges on Deposit Accounts     7,364         7,562         7,255         6,865         7,129    
Fees, Exchange, and Other Service Charges     14,208         14,576         14,173         14,400         14,333    
Investment Securities Gains (Losses), Net     (835 )       (841 )       (729 )       (1,702 )       (666 )  
Annuity and Insurance     2,578         1,409         1,360         1,847         1,206    
Bank-Owned Life Insurance     1,710         1,941         1,620         1,796         1,842    
Other     5,606         4,755         5,056         4,557         6,865    
Total Noninterest Income     43,679         42,108         41,482         41,298         44,035    
Noninterest Expense                              
Salaries and Benefits     56,586         54,856         51,782         52,148         54,422    
Net Occupancy     7,594         8,918         8,702         8,588         8,534    
Net Equipment     6,833         6,364         6,116         5,845         5,527    
Data Processing     4,526         5,151         4,241         4,563         3,891    
Professional Fees     2,453         2,467         2,206         2,546         2,773    
FDIC Insurance     1,269         1,336         2,057         2,182         2,157    
Other     13,796         16,819         15,434         14,919         17,080    
Total Noninterest Expense     93,057         95,911         90,538         90,791         94,384    
Income Before Provision for Income Taxes     72,459         68,170         70,071         67,503         64,482    
Provision for Income Taxes     13,660         14,259         13,138         12,785         10,442    
Net Income   $ 58,799       $ 53,911       $ 56,933       $ 54,718       $ 54,040    
                               
Basic Earnings Per Share   $ 1.44       $ 1.30       $ 1.37       $ 1.31       $ 1.29    
Diluted Earnings Per Share   $ 1.43       $ 1.30       $ 1.36       $ 1.30       $ 1.28    
                               
Balance Sheet Totals                              
Loans and Leases   $ 10,548,609       $ 10,448,774       $ 10,231,062       $ 10,053,323       $ 9,916,628    
Total Assets     17,446,413         17,143,974         16,991,734         17,124,162         17,136,030    
Total Deposits     15,267,310         15,027,242         14,843,335         14,943,358         14,957,133    
Total Shareholders' Equity     1,269,690         1,268,200         1,253,327         1,247,717         1,241,193    
                               

Performance Ratios

                             
Return on Average Assets     1.38   %     1.26   %     1.33   %     1.30   %     1.29   %
Return on Average Shareholders' Equity     18.81         17.05         18.06         17.68         17.74    
Efficiency Ratio 1     55.22         57.75         55.07         56.12         57.91    
Net Interest Margin 2     3.12         3.10         3.07         3.04         3.00    
                               
1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
2 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
       
                                 
Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends                                 Table 15
    Two Months Ended     Year Ended
($ in millions; jobs in thousands)   February 28, 2019     December 31, 2018   December 31, 2017
Hawaii Economic Trends                                  
State General Fund Revenues 1   $ 1,200.3   (2.9 ) %   $ 6,933.1       6.9   %   $ 6,485.0     4.3 %

General Excise and Use Tax Revenue 1

  $ 640.5   (5.2 ) %   $ 3,426.5       2.3   %   $ 3,349.8     4.5 %
Jobs 2     656.5           660.0               664.5        
                                   
                    March 31,     December 31,
(spot rates)                   2019     2018   2017
Unemployment 3                                  
Statewide, seasonally adjusted                   2.8   %     2.5 %   2.1 %
                                   
Oahu                   2.7         2.2     1.7  
Island of Hawaii                   3.7         2.9     2.0  
Maui                   2.8         2.3     1.8  
Kauai                   3.0         2.3     1.7  
                                   
              March 31,     December 31,
(percentage change, except months of inventory)       2019     2018     2017     2016  
Housing Trends (Single Family Oahu) 4                                  
Median Home Price               2.0   %   4.6   %     2.7 %   5.0 %
Home Sales Volume (units)               (5.7 ) %   (7.7 ) %     6.3 %   6.5 %
Months of Inventory               3.4       2.8         2.1     2.5  
                                   
              Monthly Visitor Arrivals,     Percentage Change
(in thousands)             Not Seasonally Adjusted     from Previous Year
Tourism 5                                  
                                   
February 28, 2019                   782.6             0.5  
January 31, 2019                   820.6             3.0  
December 31, 2018                   910.1             3.4  
November 30, 2018                   782.0             4.3  
October 31, 2018                   770.4             4.4  
September 30, 2018                   724.9             3.5  
August 31, 2018                   845.1             3.2  
July 31, 2018                   939.4             5.3  
June 30, 2018                   897.1             7.3  
May 31, 2018                   804.1             7.0  
April 30, 2018                   803.0             6.6  
March 31, 2018                   903.6             12.5  
February 28, 2018                   778.6             10.3  
January 31, 2018                   796.5             5.4  
December 31, 2017                   880.4             6.3  
November 30, 2017                   749.5             7.5  
October 31, 2017                   737.6             2.9  
September 30, 2017                   700.5             4.9  
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  
                                   
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 not seasonally adjusted.
4 Source: Honolulu Board of REALTORS
5 Source: Hawaii Tourism Authority

 

Source: Bank of Hawaii Corporation

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