Bank of Hawaii Corporation 2020 Financial Results

January 25, 2021
  • 2020 Earnings $3.86 Per Diluted Share
  • 2020 Net Income $153.8 Million
  • Diluted Earnings Per Share $1.06 for Fourth Quarter of 2020
  • Net Income $42.3 Million for Fourth Quarter of 2020
  • Board of Directors Declares Dividend of $0.67 Per Share

HONOLULU--(BUSINESS WIRE)--Jan. 25, 2021-- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $3.86 for the full year of 2020 compared with diluted earnings per share of $5.56 in 2019. Net income for the year was $153.8 million compared with net income of $225.9 million in the previous year. The return on average assets for the full year of 2020 was 0.79 percent compared with 1.29 percent in 2019. The return on average equity for the full year of 2020 was 11.38 percent compared with 17.65 percent in 2019. The efficiency ratio for the full year of 2020 improved to 54.91 percent compared with 55.68 percent in 2019.

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“Bank of Hawaii finished 2020 with solid financial performance despite the many challenges we faced during the year due to the COVID-19 pandemic," said Peter Ho, Chairman, President, and CEO. “Our loan balances grew 8.6 percent in 2020 and our deposit balances reached another record high, growing 15.4 percent compared with the prior year. Total assets expanded to a new record high of $20.6 billion at the end of the year. Our overall asset quality remained stable and our capital and liquidity all remain strong. During the year our disciplined approach to expense management allowed us to continue making significant progress on our strategic initiatives which position us well for continued growth in the future.”

Diluted earnings per share were $1.06 for the fourth quarter of 2020, an increase from $0.95 in the third quarter of 2020 and down from $1.45 in the fourth quarter of 2019. Net income for the fourth quarter of 2020 was $42.3 million, up from $37.8 million in the previous quarter and down from $58.1 million in the same quarter in 2019. The return on average assets for the fourth quarter of 2020 was 0.83 percent compared with 0.76 percent in the third quarter of 2020 and 1.29 percent in the fourth quarter of 2019. The return on average equity for the fourth quarter of 2020 was 12.26 percent compared with 11.01 percent in the third quarter of 2020 and 17.84 percent in the fourth quarter of 2019. The efficiency ratio for the fourth quarter of 2020 was 59.88 percent compared with 54.22 percent in the previous quarter and 54.26 percent in the same quarter in 2019.

Financial Highlights

Net interest income, on a taxable-equivalent basis, was $497.6 million for the full year of 2020, a decrease of $2.3 million from net interest income of $499.9 million in 2019. Net interest income, on a taxable-equivalent basis, for the fourth quarter of 2020 was $119.8 million, a decrease of $4.7 million compared with net interest income of $124.5 million in the third quarter of 2020 and down $4.4 million from net interest income of $124.2 million in the fourth quarter of 2019. Net interest income in the fourth quarter of 2020 included a charge of $3.0 million related to an impairment in the residual value of a leveraged lease which had a negative impact of 6 basis points on the net interest margin. Analyses of changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin for the full year of 2020 was 2.73 percent, a decrease of 30 basis points from the net interest margin of 3.03 percent in 2019. Adjusted for the lease impairment, the decrease in the net interest margin is largely due to lower rates and higher levels of liquidity from continued strong deposit growth. The net interest margin was 2.48 percent in the fourth quarter of 2020, a decrease of 19 basis points from the previous quarter and 47 basis points from the same quarter in 2019.

The provision for credit losses for the full year of 2020 was $117.8 million compared with a provision for credit losses of $16.0 million in 2019. Results for the fourth quarter of 2020 included a provision for credit losses of $15.2 million compared with $28.6 million in the previous quarter and $4.8 million in the same quarter in 2019.

Noninterest income for the full year of 2020 was $184.4 million, an increase of $1.1 million or 0.6 percent compared with noninterest income of $183.3 million in 2019. Noninterest income was $45.3 million in the fourth quarter of 2020 compared with noninterest income of $41.7 million in the third quarter of 2020 and $47.7 million in the fourth quarter of 2019. The increase in noninterest income during the fourth quarter of 2020 compared with the prior quarter is largely due to an increase in mortgage banking income.

Noninterest expense for the full year of 2020 was $373.8 million, a decrease of $5.4 million or 1.4 percent compared with noninterest expense of $379.2 million in 2019. Noninterest expense was $98.7 million in the fourth quarter of 2020 compared with noninterest expense of $89.9 million in the third quarter of 2020 and $93.1 million in the fourth quarter of 2019. Noninterest expense in the fourth quarter of 2020 included $6.1 million in charges related to the decision to permanently close twelve branches and reduce the current number of cash-only ATMs. Noninterest expense in the fourth quarter also included a charge of $0.8 million related to the true-up of amortization on an investment. Noninterest expense during the third quarter of 2020 included a gain of $1.9 million related to the sale of a branch building partially offset by $1.8 million in severance. There were no significant items in noninterest expense during the fourth quarter of 2019. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the full year of 2020 was 18.68 percent compared with 20.96 percent for the full year of 2019. The effective tax rate for the fourth quarter of 2020 was 16.87 percent compared with 20.09 percent in the previous quarter and 21.15 percent during the same quarter in 2019. The decrease in the effective tax rate for the fourth quarter of 2020 is primarily due to a return to provision adjustment of $1.6 million.

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

Asset Quality

The Company’s overall asset quality continued to remain relatively stable during the fourth quarter of 2020. Total non-performing assets were $18.5 million at December 31, 2020, down from $18.6 million at September 30, 2020 and $20.1 million at December 31, 2019. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.15 percent at December 31, 2020 compared with 0.16 percent at September 30, 2020 and 0.18 percent at December 31, 2019.

Accruing loans and leases past due 90 days or more were $10.5 million at December 31, 2020 compared with $9.6 million at September 30, 2020 and $8.4 million at December 31, 2019. Restructured loans and leases not included in non-accrual loans or accruing loans past due 90 days or more were $68.1 million at December 31, 2020 compared with $58.7 million at September 30, 2020 and $63.1 million at December 31, 2019. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net charge-offs for the full year of 2020 were $7.1 million or 0.06 percent of total average loans and leases compared with net charge-offs of $12.7 million or 0.12 percent of total average loans and leases in 2019. Net charge-offs during the fourth quarter of 2020 were a net recovery of $0.3 million and were comprised of charge-offs of $3.2 million fully offset by recoveries of $3.5 million. Net charge-offs during the third quarter of 2020 were a net recovery of $1.5 million as loan charge-offs of $2.3 million were fully offset by recoveries of $3.8 million. Net charge-offs during the fourth quarter of 2019 were $3.7 million or 0.13 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $6.2 million and recoveries of $2.6 million.

The allowance for credit losses was $216.3 million at December 31, 2020, an increase from $203.5 million at September 30, 2020 and $110.0 million at December 31, 2019. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.81 percent at December 31, 2020, up from 1.73 percent at September 30, 2020 and 1.00 percent at December 31, 2019. The reserve for unfunded commitments was $2.4 million at December 31, 2020, a slight increase from $2.3 million at the end of the prior quarter and down from $6.8 million at the end of the same quarter in 2019. Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights 

Total assets increased to a new record of $20.6 billion at December 31, 2020 compared with total assets of $20.1 billion at September 30, 2020 and total assets of $18.1 billion at December 31, 2019. Average total assets were $19.4 billion for the full year of 2020, an increase of 10.5 percent from average total assets of $17.5 billion during 2019.

The investment securities portfolio was $7.1 billion at December 31, 2020, up from total securities of $6.4 billion at September 30, 2020 and $5.7 billion at December 31, 2019 due to growth in deposits that continued to outpace loan growth. The portfolio remains largely comprised of securities issued by U.S. government agencies and includes $3.3 billion in securities held to maturity and $3.8 billion in securities available for sale at December 31, 2020. The securities portfolio at September 30, 2020 included $3.2 billion in securities held to maturity and $3.2 billion in securities available for sale compared with $3.0 billion in securities held to maturity and $2.6 billion in securities available for sale at December 31, 2019.

Total loans and leases were $11.9 billion at December 31, 2020, an increase of 1.2 percent from total loans and leases of $11.8 billion at September 30, 2020 and up 8.6 percent from total loans and leases of $11.0 billion at December 31, 2019. Average total loans and leases were $11.6 billion during the full year of 2020, an increase of 8.5 percent from average total loans and leases of $10.7 billion during 2019.

The commercial loan portfolio was $5.1 billion at the end of December 31, 2020, an increase of $83.8 million or 1.7 percent from $5.0 billion at the end of the third quarter of 2020 and up $886.9 million or 21.0 percent from $4.2 billion at the end of the fourth quarter of 2019. Consumer loans were $6.8 billion at December 31, 2020, an increase of $62.6 million or 0.9 percent from $6.8 billion at the end of the third quarter of 2020 and up $62.3 million or 0.9 percent from $6.8 billion at the end of the fourth quarter of 2019. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $18.2 billion at December 31, 2020, an increase of 2.7 percent from total deposits of $17.7 billion at September 30, 2020 and up 15.4 percent from total deposits of $15.8 billion at December 31, 2019. Average total deposits were $16.9 billion during the full year of 2020, an increase of 11.0 percent from average total deposits of $15.2 billion during 2019.

Consumer deposits were $9.3 billion at December 31, 2020, an increase of $443.9 million or 5.0 percent from $8.9 billion at the end of the third quarter of 2020 and an increase of $1.2 billion or 15.1 percent from $8.1 billion at the end of the fourth quarter of 2019. Commercial deposits were $7.3 billion at December 31, 2020, an increase of $143.3 million or 2.0 percent from $7.2 billion at the end of the third quarter of 2020 and an increase of $978.6 million or 15.5 percent from $6.3 billion at the end of the fourth quarter of 2019. Other deposits, including public funds, were $1.6 billion at December 31, 2020, a decrease of $114.5 million or 6.8 percent from $1.7 billion at the end of the third quarter of 2020 and an increase of $219.3 million or 16.3 percent from $1.3 billion at the end of the fourth quarter of 2019. Deposit balances are summarized in Tables 7a, 7b, and 10.

Total shareholders’ equity was $1.4 billion at December 31, 2020, an increase of $12.8 million from September 30, 2020, and up $87.7 million from December 31, 2019. There were no shares repurchased during the fourth quarter of 2020. The Tier 1 Capital Ratio was 12.06 percent at December 31, 2020 compared with 12.09 percent at September 30, 2020 and 12.18 percent at December 31, 2019. The Tier 1 Leverage Ratio at December 31, 2020 was 6.71 percent compared with 6.81 percent at September 30, 2020 and 7.25 percent at December 31, 2019. The decrease in the Tier 1 Leverage ratio is due to balance sheet growth related to the significant increase in customer deposits.

The Company’s Board of Directors declared a quarterly cash dividend of $0.67 per share on the Company’s outstanding shares. The dividend will be payable on March 12, 2021 to shareholders of record at the close of business on February 26, 2021.

Conference Call Information

The Company will review its 2020 financial results today at 8:00 a.m. Hawaii Time (1:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. The webcast link is https://edge.media-server.com/mmc/p/ukntid8g. The toll-free number for the teleconference is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code “Bank of Hawaii” to access the call. A replay of the conference call will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, January 25, 2021. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the conference ID 4199179 when prompted. In addition, the replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2019, and its Form 10-Qs for the fiscal quarters ended March 31, 2020, June 30, 2020 and October 31, 2020, which were filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

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

Bank of Hawaii Corporation and Subsidiaries                  
Financial Highlights                 Table 1  
 

Three Months Ended

 

Year Ended

 
 

December 31,

 

September 30,

 

December 31,

 

December 31,

 
(dollars in thousands, except per share amounts)

 

2020

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 
For the Period:                    
Operating Results                    
Net Interest Income

$

119,499

 

$

124,166

 

$

123,885

 

$

496,322

 

$

497,715

 
Provision for Credit Losses

 

15,200

 

 

28,600

 

 

4,750

 

 

117,800

 

 

16,000

 
Total Noninterest Income

 

45,258

 

 

41,734

 

 

47,702

 

 

184,409

 

 

183,338

 
Total Noninterest Expense

 

98,654

 

 

89,949

 

 

93,096

 

 

373,807

 

 

379,227

 
Net Income

 

42,314

 

 

37,840

 

 

58,143

 

 

153,804

 

 

225,913

 
Basic Earnings Per Share

 

1.06

 

 

0.95

 

 

1.46

 

 

3.87

 

 

5.59

 
Diluted Earnings Per Share

 

1.06

 

 

0.95

 

 

1.45

 

 

3.86

 

 

5.56

 
Dividends Declared Per Share

 

0.67

 

 

0.67

 

 

0.67

 

 

2.68

 

 

2.59

 
                     
Performance Ratios                    
Return on Average Assets

 

0.83

%

 

0.76

%

 

1.29

%

 

0.79

%

 

1.29

%

Return on Average Shareholders' Equity

 

12.26

 

 

11.01

 

 

17.84

 

 

11.38

 

 

17.65

 
Efficiency Ratio 1

 

59.88

 

 

54.22

 

 

54.26

 

 

54.91

 

 

55.68

 
Net Interest Margin 2

 

2.48

 

 

2.67

 

 

2.95

 

 

2.73

 

 

3.03

 
Dividend Payout Ratio 3

 

63.21

 

 

70.53

 

 

45.89

 

 

69.25

 

 

46.33

 
Average Shareholders' Equity to Average Assets

 

6.74

 

 

6.93

 

 

7.26

 

 

6.97

 

 

7.30

 
                     
Average Balances                    
Average Loans and Leases

$

11,835,929

 

$

11,739,785

 

$

10,878,672

 

$

11,592,093

 

$

10,688,424

 
Average Assets

 

20,382,633

 

 

19,741,139

 

 

17,821,004

 

 

19,387,693

 

 

17,537,570

 
Average Deposits

 

17,819,116

 

 

17,270,206

 

 

15,441,097

 

 

16,900,186

 

 

15,228,066

 
Average Shareholders' Equity

 

1,372,971

 

 

1,367,756

 

 

1,292,930

 

 

1,351,583

 

 

1,280,082

 
                     
Per Share of Common Stock                    
Book Value

$

34.26

 

$

33.99

 

$

32.14

 

$

34.26

 

$

32.14

 
Tangible Book Value

 

33.47

 

 

33.21

 

 

31.35

 

 

33.47

 

 

31.35

 
Market Value                    
Closing

 

76.62

 

 

50.52

 

 

95.16

 

 

76.62

 

 

95.16

 
High

 

80.38

 

 

61.94

 

 

95.68

 

 

95.53

 

 

95.68

 
Low

 

49.25

 

 

48.77

 

 

81.29

 

 

46.70

 

 

66.54

 
                     
          December 31,   September 30,   December 31,  
         

 

2020

 

 

2020

 

 

2019

 
As of Period End:                    
Balance Sheet Totals                    
Loans and Leases        

$

11,940,020

 

$

11,793,608

 

$

10,990,892

 
Total Assets        

 

20,603,651

 

 

20,109,489

 

 

18,095,496

 
Total Deposits        

 

18,211,621

 

 

17,738,883

 

 

15,784,482

 
Other Debt        

 

60,481

 

 

60,502

 

 

85,565

 
Total Shareholders' Equity        

 

1,374,507

 

 

1,361,739

 

 

1,286,832

 
                     
Asset Quality                    
Non-Performing Assets        

$

18,481

 

$

18,626

 

$

20,117

 
Allowance for Credit Losses        

 

216,252

 

 

203,496

 

 

110,027

 
Allowance to Loans and Leases Outstanding        

 

1.81

%

 

1.73

%

 

1.00

%

                     
Capital Ratios 4                    
Common Equity Tier 1 Capital Ratio        

 

12.06

%

 

12.09

%

 

12.18

%

Tier 1 Capital Ratio        

 

12.06

 

 

12.09

 

 

12.18

 
Total Capital Ratio        

 

13.31

 

 

13.35

 

 

13.28

 
Tier 1 Leverage Ratio        

 

6.71

 

 

6.81

 

 

7.25

 
Total Shareholders' Equity to Total Assets        

 

6.67

 

 

6.77

 

 

7.11

 
Tangible Common Equity to Tangible Assets 5        

 

6.53

 

 

6.63

 

 

6.95

 
Tangible Common Equity to Risk-Weighted Assets 5        

 

11.89

 

 

12.02

 

 

11.85

 
                     
Non-Financial Data                    
Full-Time Equivalent Employees        

 

2,022

 

 

2,038

 

 

2,124

 
Branches        

 

65

 

 

67

 

 

68

 
ATMs        

 

357

 

 

358

 

 

387

 
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 Regulatory capital ratios as of December 31, 2020 are preliminary.
5 Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 “Reconciliation of Non-GAAP Financial Measures."
Bank of Hawaii Corporation and Subsidiaries      
Reconciliation of Non-GAAP Financial Measures

 

 

Table 2

 

December 31,

September 30,

December 31,

(dollars in thousands)

 

2020

 

2020

 

2019

       
Total Shareholders' Equity

$

1,374,507

 

$

1,361,739

 

$

1,286,832

 

Less: Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

Tangible Common Equity

$

1,342,990

 

$

1,330,222

 

$

1,255,315

 

       
Total Assets

$

20,603,651

 

$

20,109,489

 

$

18,095,496

 

Less: Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

Tangible Assets

$

20,572,134

 

$

20,077,972

 

$

18,063,979

 

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

$

11,295,077

 

$

11,068,888

 

$

10,589,061

 

       
Total Shareholders' Equity to Total Assets

 

6.67

%

 

6.77

%

 

7.11

%

Tangible Common Equity to Tangible Assets (Non-GAAP)

 

6.53

%

 

6.63

%

 

6.95

%

       
Tier 1 Capital Ratio 

 

12.06

%

 

12.09

%

 

12.18

%

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

 

11.89

%

 

12.02

%

 

11.85

%

       
Note: Risk-Weighted Assets and Regulatory capital ratios as of December 31, 2020 are preliminary.
Bank of Hawaii Corporation and Subsidiaries            
Consolidated Statements of Income           Table 3  
 

Three Months Ended

 

Year Ended

 
 

December 31,

September 30,

December 31,

 

December 31,

 
(dollars in thousands, except per share amounts)

 

2020

 

 

2020

 

 

2019

 

 

 

2020

 

2019

 

 
Interest Income              
Interest and Fees on Loans and Leases

$

98,471

 

$

103,189

 

$

109,223

 

 

$

417,498

$

439,012

 

 
Income on Investment Securities              
Available-for-Sale

 

15,449

 

 

14,558

 

 

16,158

 

 

 

61,294

 

62,174

 

 
Held-to-Maturity

 

14,113

 

 

15,967

 

 

18,750

 

 

 

66,055

 

81,616

 

 
Deposits

 

1

 

 

3

 

 

8

 

 

 

14

 

41

 

 
Funds Sold

 

115

 

 

149

 

 

723

 

 

 

902

 

3,553

 

 
Other

 

167

 

 

151

 

 

239

 

 

 

661

 

1,001

 

 
Total Interest Income

 

128,316

 

 

134,017

 

 

145,101

 

 

 

546,424

 

587,397

 

 
Interest Expense              
Deposits

 

4,861

 

 

5,891

 

 

16,407

 

 

 

32,966

 

68,374

 

 
Securities Sold Under Agreements to Repurchase

 

3,614

 

 

3,622

 

 

4,071

 

 

 

15,281

 

17,522

 

 
Funds Purchased

 

5

 

 

-

 

 

25

 

 

 

95

 

840

 

 
Short-Term Borrowings

 

-

 

 

1

 

 

-

 

 

 

62

 

38

 

 
Other Debt

 

337

 

 

337

 

 

713

 

 

 

1,698

 

2,908

 

 
Total Interest Expense

 

8,817

 

 

9,851

 

 

21,216

 

 

 

50,102

 

89,682

 

 
Net Interest Income

 

119,499

 

 

124,166

 

 

123,885

 

 

 

496,322

 

497,715

 

 
Provision for Credit Losses

 

15,200

 

 

28,600

 

 

4,750

 

 

 

117,800

 

16,000

 

 
Net Interest Income After Provision for Credit Losses

 

104,299

 

 

95,566

 

 

119,135

 

 

 

378,522

 

481,715

 

 
Noninterest Income              
Trust and Asset Management

 

11,239

 

 

10,752

 

 

11,157

 

 

 

43,456

 

44,233

 

 
Mortgage Banking

 

6,851

 

 

4,047

 

 

3,199

 

 

 

17,871

 

13,686

 

 
Service Charges on Deposit Accounts

 

6,335

 

 

6,027

 

 

7,835

 

 

 

24,910

 

30,074

 

 
Fees, Exchange, and Other Service Charges

 

12,143

 

 

12,296

 

 

14,533

 

 

 

47,056

 

57,893

 

 
Investment Securities Gains (Losses), Net

 

(1,193

)

 

(1,121

)

 

(906

)

 

 

9,932

 

(3,986

)

 
Annuity and Insurance

 

670

 

 

881

 

 

1,272

 

 

 

3,362

 

6,934

 

 
Bank-Owned Life Insurance

 

2,353

 

 

1,806

 

 

1,879

 

 

 

7,388

 

7,015

 

 
Other

 

6,860

 

 

7,046

 

 

8,733

 

 

 

30,434

 

27,489

 

 
Total Noninterest Income

 

45,258

 

 

41,734

 

 

47,702

 

 

 

184,409

 

183,338

 

 
Noninterest Expense              
Salaries and Benefits

 

50,200

 

 

51,951

 

 

51,664

 

 

 

207,329

 

216,106

 

 
Net Occupancy

 

14,536

 

 

7,281

 

 

8,824

 

 

 

39,533

 

33,800

 

 
Net Equipment

 

9,574

 

 

9,223

 

 

7,930

 

 

 

35,448

 

29,295

 

 
Data Processing

 

4,604

 

 

4,691

 

 

4,828

 

 

 

18,499

 

18,757

 

 
Professional Fees

 

3,174

 

 

2,743

 

 

3,257

 

 

 

12,186

 

10,071

 

 
FDIC Insurance

 

1,484

 

 

1,282

 

 

1,376

 

 

 

5,780

 

5,192

 

 
Other

 

15,082

 

 

12,778

 

 

15,217

 

 

 

55,032

 

66,006

 

 
Total Noninterest Expense

 

98,654

 

 

89,949

 

 

93,096

 

 

 

373,807

 

379,227

 

 
Income Before Provision for Income Taxes

 

50,903

 

 

47,351

 

 

73,741

 

 

 

189,124

 

285,826

 

 
Provision for Income Taxes

 

8,589

 

 

9,511

 

 

15,598

 

 

 

35,320

 

59,913

 

 
Net Income

$

42,314

 

$

37,840

 

$

58,143

 

 

$

153,804

$

225,913

 

 
Basic Earnings Per Share

$

1.06

 

$

0.95

 

$

1.46

 

 

$

3.87

$

5.59

 

 
Diluted Earnings Per Share

$

1.06

 

$

0.95

 

$

1.45

 

 

$

3.86

$

5.56

 

 
Dividends Declared Per Share

$

0.67

 

$

0.67

 

$

0.67

 

 

$

2.68

$

2.59

 

 
Basic Weighted Average Shares

 

39,773,851

 

 

39,745,120

 

 

39,880,619

 

 

 

39,726,210

 

40,384,328

 

 
Diluted Weighted Average Shares

 

39,963,736

 

 

39,869,135

 

 

40,179,016

 

 

 

39,892,107

 

40,649,570

 

 
Bank of Hawaii Corporation and Subsidiaries      
Consolidated Statements of Comprehensive Income     Table 4
   

Three Months Ended

 

Year Ended

   

December 31,

September 30,

December 31,

 

December 31,

(dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

 

2020

 

 

2019

 

Net Income

$

42,314

 

$

37,840

 

$

58,143

 

 

$

153,804

 

$

225,913

 

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

 

(961

)

 

(4,900

)

 

(5,856

)

 

 

43,428

 

 

22,677

 

  Defined Benefit Plans

 

(5,616

)

 

374

 

 

(3,482

)

 

 

(4,494

)

 

(2,746

)

Other Comprehensive Income (Loss)

 

(6,577

)

 

(4,526

)

 

(9,338

)

 

 

38,934

 

 

19,931

 

Comprehensive Income

$

35,737

 

$

33,314

 

$

48,805

 

 

$

192,738

 

$

245,844

 

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

 

2020

 

 

2020

 

 

2019

 

Assets      
Interest-Bearing Deposits in Other Banks

$

1,646

 

$

4,233

 

$

4,979

 

Funds Sold

 

333,022

 

 

736,524

 

 

254,574

 

Investment Securities      
Available-for-Sale

 

3,791,689

 

 

3,190,313

 

 

2,619,003

 

Held-to-Maturity (Fair Value of $3,348,693; $3,288,668; and $3,062,882)

 

3,262,727

 

 

3,198,830

 

 

3,042,294

 

Loans Held for Sale

 

82,565

 

 

-

 

 

39,062

 

Loans and Leases

 

11,940,020

 

 

11,793,608

 

 

10,990,892

 

Allowance for Credit Losses

 

(216,252

)

 

(203,496

)

 

(110,027

)

Net Loans and Leases

 

11,723,768

 

 

11,590,112

 

 

10,880,865

 

Total Earning Assets

 

19,195,417

 

 

18,720,012

 

 

16,840,777

 

Cash and Due from Banks

 

279,420

 

 

260,167

 

 

299,105

 

Premises and Equipment, Net

 

199,695

 

 

199,021

 

 

188,388

 

Operating Lease Right-of-Use Assets

 

99,542

 

 

96,200

 

 

100,838

 

Accrued Interest Receivable

 

49,303

 

 

57,370

 

 

46,476

 

Foreclosed Real Estate

 

2,332

 

 

2,332

 

 

2,737

 

Mortgage Servicing Rights

 

19,652

 

 

21,887

 

 

25,022

 

Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

Bank-Owned Life Insurance

 

291,480

 

 

291,231

 

 

287,962

 

Other Assets

 

435,293

 

 

429,752

 

 

272,674

 

Total Assets

$

20,603,651

 

$

20,109,489

 

$

18,095,496

 

       
Liabilities      
Deposits      
Noninterest-Bearing Demand

$

5,749,612

 

$

5,428,567

 

$

4,489,525

 

Interest-Bearing Demand

 

4,040,733

 

 

3,824,448

 

 

3,127,205

 

Savings

 

6,759,213

 

 

6,763,891

 

 

6,365,321

 

Time

 

1,662,063

 

 

1,721,977

 

 

1,802,431

 

Total Deposits

 

18,211,621

 

 

17,738,883

 

 

15,784,482

 

Securities Sold Under Agreements to Repurchase

 

600,590

 

 

602,106

 

 

604,306

 

Other Debt

 

60,481

 

 

60,502

 

 

85,565

 

Operating Lease Liabilities

 

107,412

 

 

103,869

 

 

108,210

 

Retirement Benefits Payable

 

51,197

 

 

43,505

 

 

44,504

 

Accrued Interest Payable

 

5,117

 

 

6,613

 

 

8,040

 

Taxes Payable and Deferred Taxes

 

2,463

 

 

12,124

 

 

16,085

 

Other Liabilities

 

190,263

 

 

180,148

 

 

157,472

 

Total Liabilities

 

19,229,144

 

 

18,747,750

 

 

16,808,664

 

Shareholders' Equity      
Common Stock ($.01 par value; authorized 500,000,000 shares;      
issued / outstanding: December 31, 2020 - 58,285,624 / 40,119,312;      
September 30, 2020 - 58,248,690 / 40,060,675;      
and December 31, 2019 - 58,166,910 / 40,039,695)

 

580

 

 

580

 

 

579

 

Capital Surplus

 

591,360

 

 

588,632

 

 

582,566

 

Accumulated Other Comprehensive Gain (Loss)

 

7,822

 

 

14,399

 

 

(31,112

)

Retained Earnings

 

1,811,979

 

 

1,797,763

 

 

1,761,415

 

Treasury Stock, at Cost (Shares: December 31, 2020 - 18,166,312;      
September 30, 2020 - 18,188,015; and December 31, 2019 - 18,127,215)

 

(1,037,234

)

 

(1,039,635

)

 

(1,026,616

)

Total Shareholders' Equity

 

1,374,507

 

 

1,361,739

 

 

1,286,832

 

Total Liabilities and Shareholders' Equity

$

20,603,651

 

$

20,109,489

 

$

18,095,496

 

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

-

 

 

-

 

-

 

-

 

 

225,913

 

 

-

 

 

225,913

 

Other Comprehensive Income

-

 

 

-

 

-

 

19,931

 

 

-

 

 

-

 

 

19,931

 

Share-Based Compensation

-

 

 

-

 

8,337

 

-

 

 

-

 

 

-

 

 

8,337

 

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

212,924

 

 

2

 

2,525

 

-

 

 

(334

)

 

5,385

 

 

7,578

 

Common Stock Repurchased

(1,673,127

)

 

-

 

-

 

-

 

 

-

 

 

(137,649

)

 

(137,649

)

Cash Dividends Declared ($2.59 per share)

-

 

 

-

 

-

 

-

 

 

(105,478

)

 

-

 

 

(105,478

)

Balance as of December 31, 2019

40,039,695

 

$

579

$

582,566

$

(31,112

)

$

1,761,415

 

$

(1,026,616

)

$

1,286,832

 

               
Net Income

-

 

 

-

 

-

 

-

 

 

153,804

 

 

-

 

 

153,804

 

Other Comprehensive Income

-

 

 

-

 

-

 

38,934

 

 

-

 

 

-

 

 

38,934

 

Cumulative Change in Accounting Principle

-

 

 

-

 

-

 

-

 

 

3,632

 

 

-

 

 

3,632

 

Share-Based Compensation

-

 

 

-

 

7,577

 

-

 

 

-

 

 

-

 

 

7,577

 

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

283,482

 

 

1

 

1,217

 

-

 

 

562

 

 

7,388

 

 

9,168

 

Common Stock Repurchased

(203,865

)

 

-

 

-

 

-

 

 

-

 

 

(18,006

)

 

(18,006

)

Cash Dividends Declared ($2.68 per share)

-

 

 

-

 

-

 

-

 

 

(107,434

)

 

-

 

 

(107,434

)

Balance as of December 31, 2020

40,119,312

 

$

580

$

591,360

$

7,822

 

$

1,811,979

 

$

(1,037,234

)

$

1,374,507

 

Bank of Hawaii Corporation and Subsidiaries                    
Average Balances and Interest Rates - Taxable-Equivalent Basis               Table 7a  
   

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 
   

December 31, 2020

 

September 30, 2020

 

December 31, 2019

 
   

Average

Income/

Yield/

 

Average

Income/

Yield/

 

Average

Income/

Yield/

 
(dollars in millions)

Balance

Expense

Rate

 

Balance

Expense

Rate

 

Balance

Expense

Rate

 
Earning Assets                        
Interest-Bearing Deposits in Other Banks

$

2.2

$

-

0.16

%

$

2.6

$

-

0.45

%

$

3.4

$

-

0.90

%

Funds Sold

 

451.6

 

0.1

0.10

 

 

584.2

 

0.1

0.10

 

 

177.7

 

0.7

1.59

 
Investment Securities                        
  Available-for-Sale                        
  Taxable

 

3,605.8

 

15.3

1.69

 

 

2,918.6

 

14.3

1.96

 

 

2,578.3

 

15.9

2.46

 
  Non-Taxable

 

20.2

 

0.2

4.33

 

 

25.8

 

0.3

4.22

 

 

33.4

 

0.4

4.35

 
  Held-to-Maturity                        
  Taxable

 

3,246.7

 

13.9

1.71

 

 

3,257.7

 

15.7

1.93

 

 

2,994.7

 

18.4

2.46

 
  Non-Taxable

 

47.1

 

0.3

2.66

 

 

54.1

 

0.4

2.66

 

 

61.7

 

0.4

2.70

 
Total Investment Securities

 

6,919.8

 

29.7

1.71

 

 

6,256.2

 

30.7

1.96

 

 

5,668.1

 

35.1

2.47

 
Loans Held for Sale

 

15.1

 

0.1

2.98

 

 

15.9

 

0.1

3.24

 

 

31.0

 

0.3

3.67

 
Loans and Leases 1                        
  Commercial and Industrial

 

1,897.4

 

14.0

2.95

 

 

1,917.0

 

14.1

2.93

 

 

1,356.1

 

13.3

3.90

 
  Commercial Mortgage

 

2,768.0

 

21.7

3.12

 

 

2,722.3

 

21.7

3.18

 

 

2,479.7

 

25.5

4.08

 
  Construction

 

257.4

 

2.3

3.62

 

 

234.0

 

2.1

3.60

 

 

179.1

 

2.1

4.73

 
  Commercial Lease Financing

 

112.2

 

(2.5)

(9.07)

 

 

110.7

 

0.5

1.82

 

 

135.4

 

0.8

2.38

 
  Residential Mortgage

 

4,089.7

 

36.4

3.57

 

 

3,988.7

 

36.7

3.68

 

 

3,850.4

 

36.7

3.81

 
  Home Equity

 

1,600.9

 

13.2

3.28

 

 

1,625.2

 

14.1

3.45

 

 

1,683.4

 

15.7

3.70

 
  Automobile

 

706.1

 

6.4

3.59

 

 

708.3

 

6.4

3.59

 

 

715.2

 

6.5

3.59

 
  Other 2

 

404.2

 

7.0

6.85

 

 

433.6

 

7.6

6.96

 

 

479.4

 

8.5

7.02

 
Total Loans and Leases

 

11,835.9

 

98.5

3.32

 

 

11,739.8

 

103.2

3.50

 

 

10,878.7

 

109.1

3.99

 
Other

 

33.3

 

0.2

2.01

 

 

33.3

 

0.2

1.81

 

 

34.9

 

0.2

2.74

 
Total Earning Assets 3

 

19,257.9

 

128.6

2.66

 

 

18,632.0

 

134.3

2.88

 

 

16,793.8

 

145.4

3.45

 
Cash and Due from Banks

 

240.4

     

 

234.3

     

 

222.2

     
Other Assets

 

884.3

     

 

874.8

     

 

805.0

     
Total Assets

$

20,382.6

     

$

19,741.1

     

$

17,821.0

     
                           
Interest-Bearing Liabilities                        
Interest-Bearing Deposits                        
  Demand

$

3,899.5

 

0.6

0.06

 

$

3,465.5

 

0.4

0.04

 

$

2,990.3

 

1.0

0.14

 
  Savings

 

6,728.8

 

1.4

0.08

 

 

6,886.0

 

1.7

0.10

 

 

6,245.0

 

8.0

0.51

 
  Time

 

1,696.0

 

2.9

0.68

 

 

1,568.3

 

3.8

0.97

 

 

1,842.3

 

7.4

1.59

 
Total Interest-Bearing Deposits

 

12,324.3

 

4.9

0.16

 

 

11,919.8

 

5.9

0.20

 

 

11,077.6

 

16.4

0.59

 
Short-Term Borrowings

 

19.2

 

-

0.10

 

 

-

 

-

-

 

 

5.8

 

-

1.66

 
Securities Sold Under Agreements to Repurchase

 

600.9

 

3.6

2.35

 

 

602.9

 

3.6

2.35

 

 

604.3

 

4.1

2.64

 
Other Debt

 

60.5

 

0.3

2.22

 

 

60.5

 

0.3

2.22

 

 

106.2

 

0.7

2.67

 
Total Interest-Bearing Liabilities

 

13,004.9

 

8.8

0.27

 

 

12,583.2

 

9.8

0.31

 

 

11,793.9

 

21.2

0.71

 
Net Interest Income  

$

119.8

     

$

124.5

     

$

124.2

   
  Interest Rate Spread    

2.39

%

   

2.57

%

   

2.74

%

  Net Interest Margin    

2.48

%

   

2.67

%

   

2.95

%

Noninterest-Bearing Demand Deposits

 

5,494.8

     

 

5,350.4

     

 

4,363.5

     
Other Liabilities

 

509.9

     

 

439.7

     

 

370.7

     
Shareholders' Equity

 

1,373.0

     

 

1,367.8

     

 

1,292.9

     
Total Liabilities and Shareholders' Equity

$

20,382.6

     

$

19,741.1

     

$

17,821.0

     
1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $287,000, $295,000, and $352,000 for the three months ended December 31, 2020, September 30, 2020, and December 31, 2019, respectively.
Bank of Hawaii Corporation and Subsidiaries                
Average Balances and Interest Rates - Taxable-Equivalent Basis           Table 7b  
   

Year Ended

 

Year Ended

 
   

December 31, 2020

 

December 31, 2019

 
   

Average

Income/

Yield/

 

Average

Income/

Yield/

 
(dollars in millions)

Balance

Expense

Rate

 

Balance

Expense

Rate

 
Earning Assets                
Interest-Bearing Deposits in Other Banks

$

2.2

$

-

0.61

%

$

3.1

$

-

1.33

%

Funds Sold

 

434.1

 

0.9

0.21

 

 

165.7

 

3.6

2.14

 
Investment Securities                
  Available-for-Sale                
  Taxable

 

2,961.9

 

60.3

2.04

 

 

2,210.5

 

58.9

2.66

 
  Non-Taxable

 

27.6

 

1.2

4.36

 

 

109.6

 

4.1

3.78

 
  Held-to-Maturity                
  Taxable

 

3,125.2

 

65.0

2.08

 

 

3,148.2

 

78.3

2.49

 
  Non-Taxable

 

52.6

 

1.4

2.66

 

 

137.8

 

4.2

3.04

 
Total Investment Securities

 

6,167.3

 

127.9

2.07

 

 

5,606.1

 

145.5

2.60

 
Loans Held for Sale

 

19.4

 

0.6

3.28

 

 

21.7

 

0.9

3.92

 
Loans and Leases 1                
  Commercial and Industrial

 

1,797.5

 

59.3

3.30

 

 

1,370.9

 

57.9

4.23

 
  Commercial Mortgage

 

2,666.1

 

90.9

3.41

 

 

2,400.6

 

102.4

4.27

 
  Construction

 

240.1

 

9.4

3.92

 

 

145.2

 

7.4

5.07

 
  Commercial Lease Financing

 

111.3

 

(1.0)

(0.88)

 

 

154.4

 

3.7

2.43

 
  Residential Mortgage

 

3,978.7

 

146.0

3.67

 

 

3,768.2

 

144.7

3.84

 
  Home Equity

 

1,642.7

 

56.8

3.46

 

 

1,689.4

 

64.1

3.80

 
  Automobile

 

709.1

 

25.3

3.57

 

 

694.9

 

25.1

3.62

 
  Other 2

 

446.6

 

30.9

6.91

 

 

464.8

 

33.3

7.16

 
Total Loans and Leases

 

11,592.1

 

417.6

3.60

 

 

10,688.4

 

438.6

4.10

 
Other

 

33.7

 

0.7

1.96

 

 

35.1

 

1.0

2.85

 
Total Earning Assets 3

 

18,248.8

 

547.7

3.00

 

 

16,520.1

 

589.6

3.57

 
Cash and Due from Banks

 

263.8

     

 

234.0

     
Other Assets

 

875.1

     

 

783.5

     
Total Assets

$

19,387.7

     

$

17,537.6

     
                   
Interest-Bearing Liabilities                
Interest-Bearing Deposits                
  Demand

$

3,426.8

 

2.5

0.07

 

$

2,945.9

 

5.0

0.17

 
  Savings

 

6,702.7

 

12.4

0.19

 

 

6,034.0

 

32.4

0.54

 
  Time

 

1,708.1

 

18.1

1.06

 

 

1,816.3

 

31.0

1.71

 
Total Interest-Bearing Deposits

 

11,837.6

 

33.0

0.28

 

 

10,796.2

 

68.4

0.63

 
Short-Term Borrowings

 

33.5

 

0.2

0.47

 

 

36.5

 

0.9

2.41

 
Securities Sold Under Agreements to Repurchase

 

602.7

 

15.2

2.54

 

 

531.9

 

17.5

3.29

 
Other Debt

 

62.1

 

1.7

2.73

 

 

111.8

 

2.9

2.60

 
Total Interest-Bearing Liabilities

 

12,535.9

 

50.1

0.40

 

 

11,476.4

 

89.7

0.78

 
Net Interest Income  

$

497.6

     

$

499.9

   
  Interest Rate Spread    

2.60

%

   

2.79

%

  Net Interest Margin    

2.73

%

   

3.03

%

Noninterest-Bearing Demand Deposits

 

5,062.6

     

 

4,431.9

     
Other Liabilities

 

437.6

     

 

349.2

     
Shareholders' Equity

 

1,351.6

     

 

1,280.1

     
Total Liabilities and Shareholders' Equity

$

19,387.7

     

$

17,537.6

     
1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1,297,000 and $2,230,000 for the year ended December 31, 2020 and December 31, 2019, respectively.
Bank of Hawaii Corporation and Subsidiaries        
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis     Table 8a  
 

Three Months Ended December 31, 2020

 
 

Compared to September 30, 2020

 
(dollars in millions)

Volume 1

Rate 1

Total

 
Change in Interest Income:        
Investment Securities        
Available-for-Sale        
Taxable

$

3.2

 

$

(2.2

)

$

1.0

 

 
Non-Taxable

 

(0.1

)

 

-

 

 

(0.1

)

 
Held-to-Maturity        
Taxable

 

(0.1

)

 

(1.7

)

 

(1.8

)

 
Non-Taxable

 

(0.1

)

 

-

 

 

(0.1

)

 
Total Investment Securities

 

2.9

 

 

(3.9

)

 

(1.0

)

 
Loans and Leases        
Commercial and Industrial

 

(0.2

)

 

0.1

 

 

(0.1

)

 
Commercial Mortgage

 

0.4

 

 

(0.4

)

 

-

 

 
Construction

 

0.2

 

 

-

 

 

0.2

 

 
Commercial Lease Financing

 

-

 

 

(3.0

)

 

(3.0

)

 
Residential Mortgage

 

0.9

 

 

(1.2

)

 

(0.3

)

 
Home Equity

 

(0.2

)

 

(0.7

)

 

(0.9

)

 
Other 2

 

(0.5

)

 

(0.1

)

 

(0.6

)

 
Total Loans and Leases

 

0.6

 

 

(5.3

)

 

(4.7

)

 
Total Change in Interest Income

 

3.5

 

 

(9.2

)

 

(5.7

)

 
         
Change in Interest Expense:        
Interest-Bearing Deposits        
Demand

 

-

 

 

0.2

 

 

0.2

 

 
Savings

 

-

 

 

(0.3

)

 

(0.3

)

 
Time

 

0.3

 

 

(1.2

)

 

(0.9

)

 
Total Interest-Bearing Deposits

 

0.3

 

 

(1.3

)

 

(1.0

)

 
Total Change in Interest Expense

 

0.3

 

 

(1.3

)

 

(1.0

)

 
         
Change in Net Interest Income

$

3.2

 

$

(7.9

)

$

(4.7

)

 
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries        
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis     Table 8b  
 

Three Months Ended December 31, 2020

 
 

Compared to December 31, 2019

 
(dollars in millions)

Volume 1

Rate 1

Total

 
Change in Interest Income:        
Funds Sold

$

0.5

 

$

(1.1

)

$

(0.6

)

 
Investment Securities        
Available-for-Sale        
Taxable

 

5.2

 

 

(5.8

)

 

(0.6

)

 
Non-Taxable

 

(0.2

)

 

-

 

 

(0.2

)

 
Held-to-Maturity        
Taxable

 

1.5

 

 

(6.0

)

 

(4.5

)

 
Non-Taxable

 

(0.1

)

 

-

 

 

(0.1

)

 
Total Investment Securities

 

6.4

 

 

(11.8

)

 

(5.4

)

 
Loans Held for Sale

 

(0.1

)

 

(0.1

)

 

(0.2

)

 
Loans and Leases        
Commercial and Industrial

 

4.5

 

 

(3.8

)

 

0.7

 

 
Commercial Mortgage

 

2.7

 

 

(6.5

)

 

(3.8

)

 
Construction

 

0.8

 

 

(0.6

)

 

0.2

 

 
Commercial Lease Financing

 

(0.1

)

 

(3.2

)

 

(3.3

)

 
Residential Mortgage

 

2.2

 

 

(2.5

)

 

(0.3

)

 
Home Equity

 

(0.8

)

 

(1.7

)

 

(2.5

)

 
Automobile

 

(0.1

)

 

-

 

 

(0.1

)

 
Other 2

 

(1.3

)

 

(0.2

)

 

(1.5

)

 
Total Loans and Leases

 

7.9

 

 

(18.5

)

 

(10.6

)

 
Total Change in Interest Income

 

14.7

 

 

(31.5

)

 

(16.8

)

 
         
Change in Interest Expense:        
Interest-Bearing Deposits        
Demand

 

0.3

 

 

(0.7

)

 

(0.4

)

 
Savings

 

0.6

 

 

(7.2

)

 

(6.6

)

 
Time

 

(0.5

)

 

(4.0

)

 

(4.5

)

 
Total Interest-Bearing Deposits

 

0.4

 

 

(11.9

)

 

(11.5

)

 
Securities Sold Under Agreements to Repurchase

 

(0.1

)

 

(0.4

)

 

(0.5

)

 
Other Debt

 

(0.3

)

 

(0.1

)

 

(0.4

)

 
Total Change in Interest Expense

 

-

 

 

(12.4

)

 

(12.4

)

 
         
Change in Net Interest Income

$

14.7

 

$

(19.1

)

$

(4.4

)

 
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        
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis     Table 8c  
 

Year Ended December 31, 2020

 
 

Compared to December 31, 2019

 
(dollars in millions) Volume 1 Rate 1 Total  
Change in Interest Income:        
Funds Sold

$

2.4

 

$

(5.1

)

$

(2.7

)

 
Investment Securities        
Available-for-Sale        
Taxable

 

17.2

 

 

(15.8

)

 

1.4

 

 
Non-Taxable

 

(3.5

)

 

0.6

 

 

(2.9

)

 
Held-to-Maturity        
Taxable

 

(0.6

)

 

(12.7

)

 

(13.3

)

 
Non-Taxable

 

(2.3

)

 

(0.5

)

 

(2.8

)

 
Total Investment Securities

 

10.8

 

 

(28.4

)

 

(17.6

)

 
Loans Held for Sale

 

(0.1

)

 

(0.2

)

 

(0.3

)

 
Loans and Leases        
Commercial and Industrial

 

15.7

 

 

(14.3

)

 

1.4

 

 
Commercial Mortgage

 

10.5

 

 

(22.0

)

 

(11.5

)

 
Construction

 

4.0

 

 

(2.0

)

 

2.0

 

 
Commercial Lease Financing

 

(0.8

)

 

(3.9

)

 

(4.7

)

 
Residential Mortgage

 

7.9

 

 

(6.6

)

 

1.3

 

 
Home Equity

 

(1.7

)

 

(5.6

)

 

(7.3

)

 
Automobile

 

0.5

 

 

(0.3

)

 

0.2

 

 
Other 2

 

(1.3

)

 

(1.1

)

 

(2.4

)

 
Total Loans and Leases

 

34.8

 

 

(55.8

)

 

(21.0

)

 
Other

 

-

 

 

(0.3

)

 

(0.3

)

 
Total Change in Interest Income

 

47.9

 

 

(89.8

)

 

(41.9

)

 
         
Change in Interest Expense:        
Interest-Bearing Deposits        
Demand

 

0.7

 

 

(3.2

)

 

(2.5

)

 
Savings

 

3.3

 

 

(23.3

)

 

(20.0

)

 
Time

 

(1.7

)

 

(11.2

)

 

(12.9

)

 
Total Interest-Bearing Deposits

 

2.3

 

 

(37.7

)

 

(35.4

)

 
Short-Term Borrowings

 

(0.1

)

 

(0.6

)

 

(0.7

)

 
Securities Sold Under Agreements to Repurchase

 

2.1

 

 

(4.4

)

 

(2.3

)

 
Other Debt

 

(1.3

)

 

0.1

 

 

(1.2

)

 
Total Change in Interest Expense

 

3.0

 

 

(42.6

)

 

(39.6

)

 
         
Change in Net Interest Income

$

44.9

 

$

(47.2

)

$

(2.3

)

 
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          
Salaries and Benefits           Table 9  
 

Three Months Ended

 

Year Ended

 
 

December 31,

September 30,

December 31,

 

December 31,

 
(dollars in thousands)

 

2020

 

 

2020

 

2019

 

 

2020

 

2019

 
Salaries

$

33,907

 

$

34,046

$

33,465

 

$

134,178

$

132,237

 
Incentive Compensation

 

3,084

 

 

2,683

 

4,864

 

 

9,153

 

21,913

 
Share-Based Compensation

 

2,029

 

 

1,442

 

1,475

 

 

6,783

 

8,573

 
Commission Expense

 

2,164

 

 

1,800

 

2,080

 

 

6,985

 

6,474

 
Retirement and Other Benefits

 

5,212

 

 

4,164

 

4,279

 

 

18,528

 

18,151

 
Payroll Taxes

 

2,292

 

 

2,624

 

2,386

 

 

12,241

 

11,795

 
Medical, Dental, and Life Insurance

 

1,523

 

 

3,422

 

2,903

 

 

12,917

 

15,202

 
Separation Expense

 

(11

)

 

1,770

 

212

 

 

6,544

 

1,761

 
Total Salaries and Benefits

$

50,200

 

$

51,951

$

51,664

 

$

207,329

$

216,106

 
               
Bank of Hawaii Corporation and Subsidiaries        
Loan and Lease Portfolio Balances       Table 10  
   

December 31,

September 30,

June 30,

March 31,

December 31,

 
(dollars in thousands)

 

2020

 

2020

 

2020

 

2020

 

2019

 
Commercial            
  Commercial and Industrial

$

1,875,293

$

1,908,482

$

1,956,939

$

1,558,232

$

1,379,152

 
  Commercial Mortgage

 

2,854,829

 

2,745,611

 

2,707,534

 

2,616,243

 

2,518,051

 
  Construction

 

259,798

 

250,943

 

245,099

 

245,390

 

194,170

 
  Lease Financing

 

110,766

 

111,831

 

113,187

 

110,704

 

122,454

 
Total Commercial

 

5,100,686

 

5,016,867

 

5,022,759

 

4,530,569

 

4,213,827

 
Consumer            
  Residential Mortgage

 

4,130,513

 

4,044,228

 

3,989,393

 

3,928,183

 

3,891,100

 
  Home Equity

 

1,604,538

 

1,605,486

 

1,640,887

 

1,692,154

 

1,676,073

 
  Automobile

 

708,800

 

709,937

 

700,702

 

716,214

 

720,286

 
  Other 1

 

395,483

 

417,090

 

451,629

 

485,660

 

489,606

 
Total Consumer

 

6,839,334

 

6,776,741

 

6,782,611

 

6,822,211

 

6,777,065

 
Total Loans and Leases

$

11,940,020

$

11,793,608

$

11,805,370

$

11,352,780

$

10,990,892

 
               
               
Deposits          
   

December 31,

September 30,

June 30,

March 31,

December 31,

 
(dollars in thousands)

 

2020

 

2020

 

2020

 

2020

 

2019

 
Consumer

$

9,347,725

$

8,903,808

$

8,766,885

$

8,294,464

$

8,118,494

 
Commercial

 

7,302,832

 

7,159,531

 

7,295,033

 

6,358,583

 

6,324,214

 
Public and Other

 

1,561,064

 

1,675,544

 

1,361,237

 

1,402,314

 

1,341,774

 
Total Deposits

$

18,211,621

$

17,738,883

$

17,423,155

$

16,055,361

$

15,784,482

 
1 Comprised of other revolving credit, installment, and lease financing.
Bank of Hawaii Corporation and Subsidiaries            
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More     Table 11  
    December 31, September 30, June 30, March 31, December 31,  
(dollars in thousands)

 

2020

 

2020

 

2020

 

2020

 

2019

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

$

441

 

$

475

 

$

459

 

$

634

 

$

830

 

 
  Commercial Mortgage

 

8,527

 

 

8,615

 

 

8,672

 

 

9,048

 

 

9,244

 

 
  Total Commercial

 

8,968

 

 

9,090

 

 

9,131

 

 

9,682

 

 

10,074

 

 
  Consumer            
  Residential Mortgage

 

3,223

 

 

3,543

 

 

5,888

 

 

4,330

 

 

4,125

 

 
  Home Equity

 

3,958

 

 

3,661

 

 

5,176

 

 

4,086

 

 

3,181

 

 
  Total Consumer

 

7,181

 

 

7,204

 

 

11,064

 

 

8,416

 

 

7,306

 

 
Total Non-Accrual Loans and Leases

 

16,149

 

 

16,294

 

 

20,195

 

 

18,098

 

 

17,380

 

 
Foreclosed Real Estate

 

2,332

 

 

2,332

 

 

2,506

 

 

2,506

 

 

2,737

 

 
Total Non-Performing Assets

$

18,481

 

$

18,626

 

$

22,701

 

$

20,604

 

$

20,117

 

 
               
Accruing Loans and Leases Past Due 90 Days or More            
Consumer            
  Residential Mortgage

$

5,274

 

$

6,607

 

$

4,937

 

$

3,024

 

$

1,839

 

 
  Home Equity

 

3,187

 

 

2,571

 

 

3,519

 

 

3,426

 

 

4,125

 

 
  Automobile

 

925

 

 

156

 

 

133

 

 

866

 

 

949

 

 
  Other 1

 

1,160

 

 

258

 

 

296

 

 

1,205

 

 

1,493

 

 
Total Consumer

 

10,546

 

 

9,592

 

 

8,885

 

 

8,521

 

 

8,406

 

 
Total Accruing Loans and Leases Past Due 90 Days or More

$

10,546

 

$

9,592

 

$

8,885

 

$

8,521

 

$

8,406

 

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

$

68,065

 

$

58,650

 

$

59,713

 

$

61,425

 

$

63,103

 

 
Total Loans and Leases

$

11,940,020

 

$

11,793,608

 

$

11,805,370

 

$

11,352,780

 

$

10,990,892

 

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

 

0.14

%

 

0.14

%

 

0.17

%

 

0.16

%

 

0.16

%

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

 

0.15

%

 

0.16

%

 

0.19

%

 

0.18

%

 

0.18

%

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

 

0.18

%

 

0.18

%

 

0.18

%

 

0.21

%

 

0.24

%

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

 

0.14

%

 

0.14

%

 

0.20

%

 

0.16

%

 

0.15

%

 
               
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

%

 

0.27

%

 

0.26

%

 

0.26

%

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

$

18,626

 

$

22,701

 

$

20,604

 

$

20,117

 

$

21,645

 

 
Additions

 

434

 

 

938

 

 

5,856

 

 

1,754

 

 

883

 

 
Reductions            
  Payments

 

(490

)

 

(3,729

)

 

(2,736

)

 

(315

)

 

(495

)

 
  Return to Accrual Status

 

-

 

 

(1,035

)

 

(822

)

 

(437

)

 

(1,673

)

 
  Sales of Foreclosed Real Estate

 

-

 

 

(175

)

 

-

 

 

(231

)

 

(201

)

 
  Charge-offs/Write-downs

 

(89

)

 

(74

)

 

(201

)

 

(284

)

 

(42

)

 
Total Reductions

 

(579

)

 

(5,013

)

 

(3,759

)

 

(1,267

)

 

(2,411

)

 
Balance at End of Quarter

$

18,481

 

$

18,626

 

$

22,701

 

$

20,604

 

$

20,117

 

 
1 Comprised of other revolving credit, installment, and lease financing.
Bank of Hawaii Corporation and Subsidiaries          
Reserve for Credit Losses         Table 12
     

Three Months Ended

Year Ended

     

December 31,

September 30,

December 31,

December 31,

(dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Balance at Beginning of Period

$

205,813

 

$

175,958

 

$

115,758

 

$

116,849

 

$

113,515

 

               
CECL Adoption (Day 1) Impact

 

-

 

 

-

 

 

-

 

 

(5,072

)

 

-

 

               
Loans and Leases Charged-Off          
  Commercial          
    Commercial and Industrial

 

(177

)

 

(171

)

 

(307

)

 

(1,697

)

 

(1,122

)

    Commercial Mortgage

 

-

 

 

-

 

 

-

 

 

-

 

 

(1,616

)

  Consumer          
    Residential Mortgage

 

(120

)

 

-

 

 

(50

)

 

(204

)

 

(112

)

    Home Equity

 

(81

)

 

(43

)

 

(245

)

 

(397

)

 

(900

)

    Automobile

 

(393

)

 

(489

)

 

(1,990

)

 

(6,496

)

 

(7,130

)

    Other 1

 

(2,460

)

 

(1,644

)

 

(3,651

)

 

(12,244

)

 

(13,075

)

Total Loans and Leases Charged-Off

 

(3,231

)

 

(2,347

)

 

(6,243

)

 

(21,038

)

 

(23,955

)

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

 

244

 

 

231

 

 

293

 

 

2,288

 

 

1,513

 

    Commercial Mortgage

 

-

 

 

-

 

 

-

 

 

40

 

 

-

 

  Consumer          
    Residential Mortgage

 

497

 

 

414

 

 

699

 

 

1,292

 

 

1,927

 

    Home Equity

 

868

 

 

727

 

 

577

 

 

2,892

 

 

2,339

 

    Automobile

 

910

 

 

1,313

 

 

512

 

 

3,775

 

 

2,961

 

    Other 1

 

968

 

 

1,119

 

 

503

 

 

3,613

 

 

2,549

 

Total Recoveries on Loans and Leases Previously Charged-Off

 

3,487

 

 

3,804

 

 

2,584

 

 

13,900

 

 

11,289

 

Net Loans and Leases Recovered (Charged-Off)

 

256

 

 

1,457

 

 

(3,659

)

 

(7,138

)

 

(12,666

)

Provision for Credit Losses

 

15,200

 

 

28,600

 

 

4,750

 

 

117,800

 

 

16,000

 

Provision for Unfunded Commitments

 

34

 

 

(202

)

 

-

 

 

(1,136

)

 

-

 

Balance at End of Period 2

$

221,303

 

$

205,813

 

$

116,849

 

$

221,303

 

$

116,849

 

               
Components          
Allowance for Credit Losses

$

216,252

 

$

203,496

 

$

110,027

 

$

216,252

 

$

110,027

 

Allowance for Accrued Interest Receivable 3

 

2,700

 

 

-

 

 

-

 

 

2,700

 

 

-

 

Reserve for Unfunded Commitments

 

2,351

 

 

2,317

 

 

6,822

 

 

2,351

 

 

6,822

 

Total Reserve for Credit Losses

$

221,303

 

$

205,813

 

$

116,849

 

$

221,303

 

$

116,849

 

               
Average Loans and Leases Outstanding

$

11,835,929

 

$

11,739,785

 

$

10,878,672

 

$

11,592,093

 

$

10,688,424

 

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

 

(0.01

%)

 

(0.05

%)

 

0.13

%

 

0.06

%

 

0.12

%

Ratio of Allowance for Credit Losses to Loans and Leases Outstanding

 

1.81

%

 

1.73

%

 

1.00

%

 

1.81

%

 

1.00

%

1 Comprised of other revolving credit, installment, and lease financing.
2 Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.
3 On December 31 2020, the Company recorded a $2.7 million reserve on accrued interest receivable related to loans in which payment forbearances were granted to borrowers impacted by the COVID-19 pandemic. The reserve was recorded as a contra-asset against accrued interest receivable with the offset to provision for credit losses.
Bank of Hawaii Corporation and Subsidiaries          
Business Segments Selected Financial Information       Table 13a  
  Consumer Commercial Treasury Consolidated  
(dollars in thousands) Banking Banking and Other Total  
Three Months Ended December 31, 2020          
Net Interest Income

$

71,707

 

$

44,373

 

$

3,419

 

$

119,499

 

 
Provision for Credit Losses

 

(128

)

 

(129

)

 

15,457

 

 

15,200

 

 
Net Interest Income (Loss) After Provision for Credit Losses

 

71,835

 

 

44,502

 

 

(12,038

)

 

104,299

 

 
Noninterest Income

 

35,091

 

 

8,040

 

 

2,127

 

 

45,258

 

 
Noninterest Expense

 

(78,433

)

 

(15,742

)

 

(4,479

)

 

(98,654

)

 
Income (Loss) Before Income Taxes

 

28,493

 

 

36,800

 

 

(14,390

)

 

50,903

 

 
Provision for Income Taxes

 

(7,242

)

 

(9,804

)

 

8,457

 

 

(8,589

)

 
Net Income (Loss)

$

21,251

 

$

26,996

 

$

(5,933

)

$

42,314

 

 
Total Assets as of December 31, 2020

$

7,478,813

 

$

5,116,807

 

$

8,008,031

 

$

20,603,651

 

 
           
Three Months Ended December 31, 2019 1          
Net Interest Income

$

76,099

 

$

45,475

 

$

2,311

 

$

123,885

 

 
Provision for Credit Losses

 

3,819

 

 

(165

)

 

1,096

 

 

4,750

 

 
Net Interest Income After Provision for Credit Losses

 

72,280

 

 

45,640

 

 

1,215

 

 

119,135

 

 
Noninterest Income

 

35,306

 

 

10,624

 

 

1,772

 

 

47,702

 

 
Noninterest Expense

 

(68,494

)

 

(21,071

)

 

(3,531

)

 

(93,096

)

 
Income (Loss) Before Income Taxes

 

39,092

 

 

35,193

 

 

(544

)

 

73,741

 

 
Provision for Income Taxes

 

(9,909

)

 

(6,345

)

 

656

 

 

(15,598

)

 
Net Income

$

29,183

 

$

28,848

 

$

112

 

$

58,143

 

 
Total Assets as of December 31, 2019 1

$

7,054,511

 

$

4,254,261

 

$

6,786,724

 

$

18,095,496

 

 
1 Certain prior period information has been reclassified to conform to current presentation.  
Bank of Hawaii Corporation and Subsidiaries          
Business Segments Selected Financial Information       Table 13b  
  Consumer Commercial Treasury Consolidated  
(dollars in thousands) Banking Banking and Other Total  
Year Ended December 31, 2020          
Net Interest Income

$

292,710

 

$

188,626

 

$

14,986

 

$

496,322

 

 
Provision for Credit Losses

 

8,087

 

 

(948

)

 

110,661

 

 

117,800

 

 
Net Interest Income (Loss) After Provision for Credit Losses

 

284,623

 

 

189,574

 

 

(95,675

)

 

378,522

 

 
Noninterest Income

 

128,400

 

 

34,523

 

 

21,486

 

 

184,409

 

 
Noninterest Expense

 

(289,177

)

 

(63,294

)

 

(21,336

)

 

(373,807

)

 
Income (Loss) Before Income Taxes

 

123,846

 

 

160,803

 

 

(95,525

)

 

189,124

 

 
Provision for Income Taxes

 

(31,476

)

 

(40,081

)

 

36,237

 

 

(35,320

)

 
Net Income (Loss)

$

92,370

 

$

120,722

 

$

(59,288

)

$

153,804

 

 
Total Assets as of December 31, 2020

$

7,478,813

 

$

5,116,807

 

$

8,008,031

 

$

20,603,651

 

 
           
Year Ended December 31, 2019 1          
Net Interest Income

$

305,803

 

$

185,259

 

$

6,653

 

$

497,715

 

 
Provision for Credit Losses

 

11,685

 

 

976

 

 

3,339

 

 

16,000

 

 
Net Interest Income After Provision for Credit Losses

 

294,118

 

 

184,283

 

 

3,314

 

 

481,715

 

 
Noninterest Income

 

142,378

 

 

33,362

 

 

7,598

 

 

183,338

 

 
Noninterest Expense

 

(281,662

)

 

(84,616

)

 

(12,949

)

 

(379,227

)

 
Income Before Income Taxes

 

154,834

 

 

133,029

 

 

(2,037

)

 

285,826

 

 
Provision for Income Taxes

 

(38,654

)

 

(28,852

)

 

7,593

 

 

(59,913

)

 
Net Income

$

116,180

 

$

104,177

 

$

5,556

 

$

225,913

 

 
Total Assets as of December 31, 2019 1

$

7,054,511

 

$

4,254,261

 

$

6,786,724

 

$

18,095,496

 

 
1 Certain prior period information has been reclassified to conform to current presentation.  
Bank of Hawaii Corporation and Subsidiaries                  
Selected Quarterly Financial Data                 Table 14  
  Three Months Ended  
  December 31,   September 30,   June 30,   March 31,   December 31,  
(dollars in thousands, except per share amounts)

 

2020

 

 

2020

 

 

2020

 

 

2020

 

 

2019

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

$

98,471

 

 

$

103,189

 

 

$

107,628

 

$

108,210

 

 

$

109,223

 

 
Income on Investment Securities                    
Available-for-Sale

 

15,449

 

 

 

14,558

 

 

 

14,576

 

 

16,711

 

 

 

16,158

 

 
Held-to-Maturity

 

14,113

 

 

 

15,967

 

 

 

16,723

 

 

19,252

 

 

 

18,750

 

 
Deposits

 

1

 

 

 

3

 

 

 

1

 

 

9

 

 

 

8

 

 
Funds Sold

 

115

 

 

 

149

 

 

 

92

 

 

546

 

 

 

723

 

 
Other

 

167

 

 

 

151

 

 

 

125

 

 

218

 

 

 

239

 

 
Total Interest Income

 

128,316

 

 

 

134,017

 

 

 

139,145

 

 

144,946

 

 

 

145,101

 

 
Interest Expense                    
Deposits

 

4,861

 

 

 

5,891

 

 

 

7,954

 

 

14,260

 

 

 

16,407

 

 
Securities Sold Under Agreements to Repurchase

 

3,614

 

 

 

3,622

 

 

 

4,020

 

 

4,025

 

 

 

4,071

 

 
Funds Purchased

 

5

 

 

 

-

 

 

 

18

 

 

72

 

 

 

25

 

 
Short-Term Borrowings

 

-

 

 

 

1

 

 

 

22

 

 

39

 

 

 

-

 

 
Other Debt

 

337

 

 

 

337

 

 

 

440

 

 

584

 

 

 

713

 

 
Total Interest Expense

 

8,817

 

 

 

9,851

 

 

 

12,454

 

 

18,980

 

 

 

21,216

 

 
Net Interest Income

 

119,499

 

 

 

124,166

 

 

 

126,691

 

 

125,966

 

 

 

123,885

 

 
Provision for Credit Losses

 

15,200

 

 

 

28,600

 

 

 

40,400

 

 

33,600

 

 

 

4,750

 

 
Net Interest Income After Provision for Credit Losses

 

104,299

 

 

 

95,566

 

 

 

86,291

 

 

92,366

 

 

 

119,135

 

 
Noninterest Income                    
Trust and Asset Management

 

11,239

 

 

 

10,752

 

 

 

10,550

 

 

10,915

 

 

 

11,157

 

 
Mortgage Banking

 

6,851

 

 

 

4,047

 

 

 

4,278

 

 

2,695

 

 

 

3,199

 

 
Service Charges on Deposit Accounts

 

6,335

 

 

 

6,027

 

 

 

5,097

 

 

7,451

 

 

 

7,835

 

 
Fees, Exchange, and Other Service Charges

 

12,143

 

 

 

12,296

 

 

 

9,417

 

 

13,200

 

 

 

14,533

 

 
Investment Securities Gains (Losses), Net

 

(1,193

)

 

 

(1,121

)

 

 

13,216

 

 

(970

)

 

 

(906

)

 
Annuity and Insurance

 

670

 

 

 

881

 

 

 

883

 

 

928

 

 

 

1,272

 

 
Bank-Owned Life Insurance

 

2,353

 

 

 

1,806

 

 

 

1,649

 

 

1,580

 

 

 

1,879

 

 
Other

 

6,860

 

 

 

7,046

 

 

 

6,178

 

 

10,350

 

 

 

8,733

 

 
Total Noninterest Income

 

45,258

 

 

 

41,734

 

 

 

51,268

 

 

46,149

 

 

 

47,702

 

 
Noninterest Expense                    
Salaries and Benefits

 

50,200

 

 

 

51,951

 

 

 

50,715

 

 

54,463

 

 

 

51,664

 

 
Net Occupancy

 

14,536

 

 

 

7,281

 

 

 

8,761

 

 

8,955

 

 

 

8,824

 

 
Net Equipment

 

9,574

 

 

 

9,223

 

 

 

8,195

 

 

8,456

 

 

 

7,930

 

 
Data Processing

 

4,604

 

 

 

4,691

 

 

 

4,416

 

 

4,788

 

 

 

4,828

 

 
Professional Fees

 

3,174

 

 

 

2,743

 

 

 

3,061

 

 

3,208

 

 

 

3,257

 

 
FDIC Insurance

 

1,484

 

 

 

1,282

 

 

 

1,558

 

 

1,456

 

 

 

1,376

 

 
Other

 

15,082

 

 

 

12,778

 

 

 

12,186

 

 

14,986

 

 

 

15,217

 

 
Total Noninterest Expense

 

98,654

 

 

 

89,949

 

 

 

88,892

 

 

96,312

 

 

 

93,096

 

 
Income Before Provision for Income Taxes

 

50,903

 

 

 

47,351

 

 

 

48,667

 

 

42,203

 

 

 

73,741

 

 
Provision for Income Taxes

 

8,589

 

 

 

9,511

 

 

 

9,759

 

 

7,461

 

 

 

15,598

 

 
Net Income

$

42,314

 

 

$

37,840

 

 

$

38,908

 

$

34,742

 

 

$

58,143

 

 
                     
Basic Earnings Per Share

$

1.06

 

 

$

0.95

 

 

$

0.98

 

$

0.88

 

 

$

1.46

 

 
Diluted Earnings Per Share

$

1.06

 

 

$

0.95

 

 

$

0.98

 

$

0.87

 

 

$

1.45

 

 
                     
Balance Sheet Totals                    
Loans and Leases

$

11,940,020

 

 

$

11,793,608

 

 

$

11,805,370

 

$

11,352,780

 

 

$

10,990,892

 

 
Total Assets

 

20,603,651

 

 

 

20,109,489

 

 

 

19,769,942

 

 

18,542,233

 

 

 

18,095,496

 

 
Total Deposits

 

18,211,621

 

 

 

17,738,883

 

 

 

17,423,155

 

 

16,055,361

 

 

 

15,784,482

 

 
Total Shareholders' Equity

 

1,374,507

 

 

 

1,361,739

 

 

 

1,352,082

 

 

1,327,929

 

 

 

1,286,832

 

 
                     
Performance Ratios                    
Return on Average Assets

 

0.83

 

%

 

0.76

 

%

 

0.82

%

 

0.77

 

%

 

1.29

 

%

Return on Average Shareholders' Equity

 

12.26

 

 

 

11.01

 

 

 

11.58

 

 

10.64

 

 

 

17.84

 

 
Efficiency Ratio 1

 

59.88

 

 

 

54.22

 

 

 

49.95

 

 

55.96

 

 

 

54.26

 

 
Net Interest Margin 2

 

2.48

 

 

 

2.67

 

 

 

2.83

 

 

2.96

 

 

 

2.95

 

 
1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
2 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
Bank of Hawaii Corporation and Subsidiaries                  
Hawaii Economic Trends                     Table 15  
  Eleven Months Ended   Year Ended  
($ in millions; jobs in thousands) November 30, 2020   December 31, 2019 December 31, 2018  
Hawaii Economic Trends                        
State General Fund Revenues 1

$

5,894.5

(12.5

)

%

$

7,316.5

 

5.5

 

%

$

6,933.1

 

 

6.9

 

%

 
General Excise and Use Tax Revenue 1

$

2,797.3

(15.7

)

%

$

3,602.2

 

5.1

 

%

$

3,426.5

 

 

2.3

 

%

 
Jobs 2

 

591.0

   

 

648.9

     

 

649.9

 

       
                         
           

November 30,

 

December 31,

 
(spot rates)          

2020

 

 

2019

 

2018

 

 
Unemployment 3                        
Statewide, seasonally adjusted          

10.1

 

%

 

2.7

 

%

2.6

 

%

 
                         
Oahu          

8.8

 

 

 

2.1

 

 

2.2

 

   
Island of Hawaii          

9.8

 

 

 

2.8

 

 

2.9

 

   
Maui          

16.0

 

 

 

2.2

 

 

2.2

 

   
Kauai          

13.5

 

 

 

2.4

 

 

2.3

 

   
                         
       

December 31,

 
(percentage change, except months of inventory)      

 

2020

 

2019

 

 

 

2018

 

 

2017

 

 

 
Housing Trends (Single Family Oahu) 4                        
Median Home Price      

 

5.2

%

(0.1

)

%

 

4.6

 

%

2.7

 

%

 
Home Sales Volume (units)      

 

2.3

%

3.9

 

%

 

(7.7

)

%

6.3

 

%

 
Months of Inventory      

 

1.4

 

2.5

 

 

 

2.8

 

 

2.1

 

   
                         
        Monthly Visitor Arrivals,   Percentage Change  
(in thousands)       Not Seasonally Adjusted   from Previous Year  
Tourism 5                        
November 30, 2020          

183.8

 

     

(77.3

)

   
October 31, 2020          

76.6

 

     

(90.4

)

   
September 30, 2020          

18.9

 

     

(97.4

)

   
August 31, 2020          

22.3

 

     

(97.6

)

   
July 31, 2020          

22.6

 

     

(97.7

)

   
June 30, 2020          

17.1

 

     

(98.2

)

   
May 31, 2020          

9.1

 

     

(98.9

)

   
April 30, 2020          

4.6

 

     

(99.5

)

   
March 31, 2020          

434.9

 

     

(53.7

)

   
February 29, 2020          

828.1

 

     

5.8

 

   
January 31, 2020          

862.6

 

     

5.1

 

   
December 31, 2019          

954.3

 

     

6.0

 

   
November 30, 2019          

809.1

 

     

3.9

 

   
October 31, 2019          

796.2

 

     

4.3

 

   
September 30, 2019          

738.2

 

     

3.1

 

   
August 31, 2019          

926.4

 

     

9.6

 

   
July 31, 2019          

995.2

 

     

5.9

 

   
June 30, 2019          

951.6

 

     

6.1

 

   
May 31, 2019          

841.4

 

     

4.6

 

   
April 30, 2019          

856.3

 

     

6.6

 

   
March 31, 2019          

939.1

 

     

3.9

 

   
February 28, 2019          

782.7

 

     

0.5

 

   
January 31, 2019          

820.6

 

     

3.0

 

   
1 Source: Hawaii Department of Business, Economic Development & Tourism
2 Source: U. S. Bureau of Labor Statistics
3 Source: UHERO for 2020 and Hawaii Department of Labor and Industrial Relations for 2019 and 2018. County jobs data not seasonally adjusted.
4 Source: Honolulu Board of REALTORS
5 Source: Hawaii Tourism Authority

 

Media Inquiries
Melissa Torres-Laing
Email: Melissa.Torres-Laing@boh.com
Telephone: 808-694-8384
Mobile: 808-859-1703

Investor/Analyst Inquiries
Janelle Higa
Email: Janelle.Higa@boh.com
Telephone: 808-694-8007

Source: Bank of Hawaii Corporation

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