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Bank of Hawaii Corporation Second Quarter 2020 Financial Results
  • Diluted Earnings Per Share $0.98
  • Net Income $38.9 Million
  • Board of Directors Approves Dividend of $0.67 Per Share

HONOLULU--(BUSINESS WIRE)--Jul. 27, 2020-- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.98 for the second quarter of 2020 compared with diluted earnings per share of $0.87 in the previous quarter and diluted earnings per share of $1.40 in the same quarter last year. Net income for the second quarter of 2020 was $38.9 million compared with net income of $34.7 million in the first quarter of 2020 and net income of $56.9 million in the second quarter of 2019.

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Loan and lease balances increased to $11.8 billion at June 30, 2020, up 4.0 percent from March 31, 2020 and up 9.7 percent compared with June 30, 2019. Total deposits reached a new record high of $17.4 billion at the end of the second quarter of 2020, up 8.5 percent from March 31, 2020 and up 12.5 percent compared with June 30, 2019.

“Bank of Hawaii Corporation continued to perform well in this very challenging environment,” said Peter Ho, Chairman, President and CEO. “Our balance sheet continued to grow while maintaining strong levels of capital and liquidity. Our asset quality remained stable during the quarter and we are well positioned for the future. During the quarter we reopened nine of our branches and our dedicated employees were able to support the needs of our customers and community during this unprecedented period.”

The return on average assets for the second quarter of 2020 was 0.82 percent, up from 0.77 percent in the previous quarter and down from 1.31 percent in the same quarter last year. The return on average equity for the second quarter of 2020 was 11.58 percent, up from 10.64 percent for the first quarter of 2020 and down from 17.97 percent for the second quarter of 2019. The efficiency ratio for the second quarter of 2020 improved to 49.95 percent compared with 55.96 percent in the previous quarter and 54.69 percent in the same quarter last year.

For the six-month period ended June 30, 2020, net income was $73.7 million, down from net income of $115.7 million during the same period last year. Diluted earnings per share were $1.85 for the first half of 2020 compared with diluted earnings per share of $2.82 for the first half of 2019.

The return on average assets for the six-month period ended June 30, 2020 was 0.79 percent compared with the return on average assets of 1.34 percent for the same six months in 2019. The year-to-date return on average equity was 11.11 percent for the first half of 2020 compared with the return on average equity of 18.39 percent for the first half of 2019. The efficiency ratio for the first half of 2020 improved to 52.90 percent compared with 54.95 percent in the same period last year.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the second quarter of 2020 was $127.0 million, an increase of $0.7 million compared with $126.3 million in the first quarter of 2020 and an increase of $2.3 million compared with $124.7 million in the second quarter of 2019. Net interest income in the second quarter of 2020 included an interest recovery of $2.9 million. Net interest income, on a taxable equivalent basis, for the first half of 2020 was $253.4 million, an increase of $2.9 million compared with net interest income of $250.5 million for the first half of 2019. Analyses of the changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin was 2.83 percent for the second quarter of 2020, down 13 basis points from 2.96 percent in the previous quarter and down 21 basis points from the net interest margin of 3.04 percent in the second quarter of 2019. The decrease in the net interest margin is largely due to lower rates and higher levels of liquidity. The net interest margin for the first six months of 2020 was 2.90 percent compared with the net interest margin of 3.08 percent for the same six-month period last year.

Results for the second quarter of 2020 included a provision for credit losses of $40.4 million compared with $33.6 million in the previous quarter and $4.0 million in the same quarter last year. The provision for credit losses during the first half of 2020 was $74.0 million compared with a provision for credit losses of $7.0 million during the same period in 2019.

Noninterest income was $51.3 million in the second quarter of 2020, an increase of $5.2 million compared with $46.1 million in the first quarter of 2020 and an increase of $5.8 million compared with $45.5 million in the second quarter of 2019. Noninterest income during the second quarter of 2020 included a gain of $14.2 million related to a sale of Visa Class B shares. There were no significant items in noninterest income during the first quarter of 2020 or the second quarter of 2019. Adjusted for the sale of the Visa shares, the decline in noninterest income compared to the prior quarter was due to reductions in overdraft and ATM fees and lower customer derivative activity. Noninterest income for the first half of 2020 was $97.4 million, an increase of $8.3 million compared with noninterest income of $89.1 million for the first half of 2019.

Noninterest expense was $88.9 million in the second quarter of 2020, a decrease of $7.4 million compared with $96.3 million in the first quarter of 2020 and a decrease of $3.8 million compared with $92.7 million in the second quarter last year. There were no significant items in noninterest expense during the second quarter of 2020 or the second quarter of 2019. Noninterest expense in the first quarter of 2020 included seasonal payroll expenses of approximately $3.1 million and severance expenses of $4.7 million that were partially offset by the elimination of corporate incentive accruals. Noninterest expense for the first half of 2020 was $185.2 million, a decrease of $0.6 million compared with noninterest expense of $185.8 million for the first half of 2019. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the second quarter of 2020 was 20.05 percent compared with 17.68 percent in the previous quarter and 21.84 percent in the same quarter last year. The effective tax rate for the first half of 2020 was 18.95 percent compared with an effective tax rate of 20.35 percent during the same period last year.

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 asset quality remained relatively stable during the second quarter of 2020. Total non-performing assets were $22.7 million at June 30, 2020 compared with $20.6 million at March 31, 2020 and $21.8 million at June 30, 2019. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.19 percent at the end of the second quarter of 2020 compared with 0.18 percent at the end of the first quarter of 2020 and 0.20 percent at the end of the second quarter last year.

Accruing loans and leases past due 90 days or more were $8.9 million at June 30, 2020 compared with $8.5 million at March 31, 2020 and $6.4 million at June 30, 2019. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $59.7 million at June 30, 2020, compared with $61.4 million at March 31, 2020 and $48.6 million at June 30, 2019. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loan and lease charge-offs during the second quarter of 2020 were $5.1 million or 0.18 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $8.3 million during the quarter were partially offset by recoveries of $3.2 million. Net charge-offs during the first quarter of 2020 were $3.7 million or 0.14 percent annualized of total average loans and leases outstanding and comprised of $7.2 million in charge-offs and recoveries of $3.4 million. Net charge-offs during the second quarter of 2019 were $2.4 million or 0.09 percent annualized of total average loans and leases outstanding and comprised of $5.1 million in charge-offs and recoveries of $2.8 million. Net charge-offs during the first half of 2020 were $8.9 million or 0.16 percent annualized of total average loans and leases outstanding compared with net charge-offs of $6.0 million or 0.12 percent annualized of total average loans and leases outstanding for the first half of 2019.

The allowance for credit losses was $173.4 million at June 30, 2020 compared with $138.2 million at March 31, 2020 and $107.7 million at June 30, 2019. The ratio of the allowance for credit losses to total loans and leases was 1.47 percent at June 30, 2020 compared with 1.22 percent at March 31, 2020 and 1.00 percent at June 30, 2019. The reserve for unfunded commitments was $2.5 million at June 30, 2020 compared with $3.3 million at March 31, 2020 and $6.8 million at June 30, 2019. 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 increased to $19.8 billion at June 30, 2020 compared with $18.5 billion at March 31, 2020 and $17.7 billion at June 30, 2019. Average total assets were $19.2 billion during the second quarter of 2020 compared with $18.2 billion during the previous quarter and $17.5 billion during the second quarter last year.

The investment securities portfolio was $6.0 billion at June 30, 2020, up from $5.7 billion at March 31, 2020 and $5.6 billion at June 30, 2019. The portfolio remains largely comprised of securities issued by U.S. government agencies and includes $3.3 billion in securities held to maturity and $2.7 billion in securities available for sale. The securities portfolio at March 31, 2020 included $3.0 billion in securities held to maturity and $2.7 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 June 30, 2019.

Total loans and leases were $11.8 billion at June 30, 2020, up from $11.4 billion at March 31, 2020 and $10.8 billion at June 30, 2019. Average total loans and leases increased to $11.7 billion during the second quarter of 2020 compared with $11.1 billion during the previous quarter and $10.6 billion during the same quarter last year. The commercial loan portfolio was $5.0 billion at June 30, 2020, up $492.2 million or 10.9 percent from commercial loans of $4.5 billion at March 31, 2020, and up $920.4 million or 22.4 percent from commercial loans of $4.1 billion at June 30, 2019. The consumer loan portfolio decreased to $6.8 billion at June 30, 2020, down $39.6 million or 0.6 percent from consumer loans of $6.8 billion at March 31, 2020 and increased $125.8 million or 1.9 percent from consumer loans of $6.7 billion at June 30, 2019. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $17.4 billion at June 30, 2020, up from $16.1 billion at March 31, 2020 and $15.5 billion at June 30, 2019. Average total deposits were $16.7 billion during the second quarter of 2020, up from $15.8 billion during the previous quarter and $15.2 billion during the same quarter last year. Consumer deposits increased to $8.8 billion at June 30, 2020, up $472.4 million or 5.7 percent from consumer deposits of $8.3 billion at March 31, 2020 and up $886.6 million or 11.3 percent from consumer deposits of $7.9 billion at June 30, 2019. Commercial deposits increased to $7.3 billion at June 30, 2020, up $936.5 million or 14.7 percent from commercial deposits of $6.4 billion at March 31, 2020 and up $1.1 billion or 18.1 percent from commercial deposits of $6.2 billion at June 30, 2019. Other deposits, including public funds, were $1.4 billion at June 30, 2020, down $41.1 million or 2.9 percent from March 31, 2020 and down $68.3 million or 4.8 percent from June 30, 2019. Deposit balances are summarized in Tables 7a, 7b, and 10.

Total shareholders’ equity increased to $1.4 billion at June 30, 2020 compared with $1.3 billion at March 31, 2020 and June 30, 2019. There were no shares repurchased during the second quarter of 2020. The Tier 1 Capital Ratio at June 30, 2020 was 12.04 percent compared with 11.81 percent at March 31, 2020 and 12.46 percent at June 30, 2019. The Tier 1 leverage ratio at June 30, 2020 was 6.90 percent compared with 7.12 percent at March 31, 2020 and 7.36 percent at June 30, 2019.

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 September 15, 2020 to shareholders of record at the close of business on August 31, 2020.

Conference Call Information

The Company will review its second quarter 2020 financial results today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time). The conference call including presentation materials 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 11:00 a.m. Hawaii Time on Monday, July 27, 2020. 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 5959108 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, 2019, 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 a regional financial services company serving businesses, consumers, and governments in Hawaii and the West Pacific. The Company’s principal subsidiary, Bank of Hawaii, was founded in 1897. For more information about Bank of Hawaii Corporation, see the Company’s web site, www.boh.com.

Bank of Hawaii Corporation and Subsidiaries
Financial Highlights                           Table 1  
   

Three Months Ended

 

 

Six Months Ended

 
   

June 30,

 

 

March 31,

 

 

June 30,

 

 

June 30,

 
(dollars in thousands, except per share amounts)  

2020

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 
For the Period:                              
Operating Results                              
Net Interest Income  

$

126,691

   

$

125,966

   

$

124,097

   

$

252,657

   

$

248,934

 
Provision for Credit Losses  

 

40,400

   

 

33,600

   

 

4,000

   

 

74,000

   

 

7,000

 
Total Noninterest Income  

 

51,268

   

 

46,149

   

 

45,450

   

 

97,417

   

 

89,129

 
Total Noninterest Expense  

 

88,892

   

 

96,312

   

 

92,725

   

 

185,204

   

 

185,782

 
Net Income  

 

38,908

   

 

34,742

   

 

56,919

   

 

73,650

   

 

115,718

 
Basic Earnings Per Share  

 

0.98

   

 

0.88

   

 

1.40

   

 

1.86

   

 

2.84

 
Diluted Earnings Per Share  

 

0.98

   

 

0.87

   

 

1.40

   

 

1.85

   

 

2.82

 
Dividends Declared Per Share  

 

0.67

   

 

0.67

   

 

0.65

   

 

1.34

   

 

1.27

 
                               
Performance Ratios                              
Return on Average Assets  

 

0.82

%

 

 

0.77

%

 

 

1.31

%

 

 

0.79

%

 

 

1.34

%

Return on Average Shareholders' Equity  

 

11.58

   

 

10.64

   

 

17.97

   

 

11.11

   

 

18.39

 
Efficiency Ratio 1  

 

49.95

   

 

55.96

   

 

54.69

   

 

52.90

   

 

54.95

 
Net Interest Margin 2  

 

2.83

   

 

2.96

   

 

3.04

   

 

2.90

   

 

3.08

 
Dividend Payout Ratio 3  

 

68.37

   

 

76.14

   

 

46.43

   

 

72.04

   

 

44.72

 
Average Shareholders' Equity to Average Assets  

 

7.04

   

 

7.21

   

 

7.27

   

 

7.12

   

 

7.31

 
                               
Average Balances                              
Average Loans and Leases  

$

11,727,649

   

$

11,060,707

   

$

10,631,558

   

$

11,394,178

   

$

10,549,893

 
Average Assets  

 

19,189,581

   

 

18,222,602

   

 

17,480,651

   

 

18,706,092

   

 

17,359,031

 
Average Deposits  

 

16,679,511

   

 

15,817,745

   

 

15,162,782

   

 

16,248,628

   

 

15,067,622

 
Average Shareholders' Equity  

 

1,351,345

   

 

1,313,848

   

 

1,270,162

   

 

1,332,596

   

 

1,268,808

 
                               
Per Share of Common Stock                              
Book Value  

$

33.76

   

$

33.20

   

$

31.61

   

$

33.76

   

$

31.61

 
Tangible Book Value  

 

32.97

   

 

32.41

   

 

30.83

   

 

32.97

   

 

30.83

 
Market Value                              
Closing  

 

61.41

   

 

54.91

   

 

82.91

   

 

61.41

   

 

82.91

 
High  

 

72.74

   

 

95.53

   

 

84.53

   

 

95.53

   

 

84.53

 
Low  

 

51.15

   

 

46.70

   

 

75.24

   

 

46.70

   

 

66.54

 
                               
         

June 30,

   

March 31,

   

December 31,

   

June 30,

 
         

2020

   

2020

   

2019

   

2019

 
As of Period End:                              
Balance Sheet Totals                              
Loans and Leases        

$

11,805,370

   

$

11,352,780

   

$

10,990,892

   

$

10,759,129

 
Total Assets        

 

19,769,942

   

 

18,542,233

   

 

18,095,496

   

 

17,688,845

 
Total Deposits        

 

17,423,155

   

 

16,055,361

   

 

15,784,482

   

 

15,488,821

 
Other Debt        

 

60,524

   

 

60,545

   

 

85,565

   

 

110,605

 
Total Shareholders' Equity        

 

1,352,082

   

 

1,327,929

   

 

1,286,832

   

 

1,285,948

 
                               
Asset Quality                              
Non-Performing Assets        

$

22,701

   

$

20,604

   

$

20,117

   

$

21,782

 
Allowance for Credit Losses        

 

173,439

   

 

138,150

   

 

110,027

   

 

107,672

 
Allowance to Loans and Leases Outstanding        

 

1.47

%

 

 

1.22

%

 

 

1.00

%

 

 

1.00

%

                               
Capital Ratios 4                              
Common Equity Tier 1 Capital Ratio        

 

12.04

%

 

 

11.81

%

 

 

12.18

%

 

 

12.46

%

Tier 1 Capital Ratio        

 

12.04

   

 

11.81

   

 

12.18

   

 

12.46

 
Total Capital Ratio        

 

13.29

   

 

13.06

   

 

13.28

   

 

13.57

 
Tier 1 Leverage Ratio        

 

6.90

   

 

7.12

   

 

7.25

   

 

7.36

 
Total Shareholders' Equity to Total Assets        

 

6.84

   

 

7.16

   

 

7.11

   

 

7.27

 
Tangible Common Equity to Tangible Assets 5        

 

6.69

   

 

7.00

   

 

6.95

   

 

7.10

 
Tangible Common Equity to Risk-Weighted Assets 5        

 

12.07

   

 

11.85

   

 

11.85

   

 

12.17

 
                               
Non-Financial Data                              
Full-Time Equivalent Employees        

 

2,112

   

 

2,094

   

 

2,124

   

 

2,152

 
Branches        

 

67

   

 

67

   

 

68

   

 

68

 
ATMs        

 

367

   

 

382

   

 

387

   

 

383

 
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 June 30, 2020 are preliminary. CET 1 / Tier 1 Capital Ratios revised from 11.85%, Total Capital Ratio revised from 13.10%, and Tier 1 Leverage Ratio revised from 7.14% as of March 31, 2020.
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

   

June 30,

 

March 31,

 

December 31,

 

June 30,

(dollars in thousands)  

2020

 

2020

 

2019

 

2019

                 
Total Shareholders' Equity  

$

1,352,082

 

 

$

1,327,929

 

 

$

1,286,832

 

 

$

1,285,948

 

Less: Goodwill  

 

31,517

 

 

 

31,517

 

 

 

31,517

 

 

 

31,517

 

Tangible Common Equity  

$

1,320,565

 

 

$

1,296,412

 

 

$

1,255,315

 

 

$

1,254,431

 

                 
Total Assets  

$

19,769,942

 

 

$

18,542,233

 

 

$

18,095,496

 

 

$

17,688,845

 

Less: Goodwill  

 

31,517

 

 

 

31,517

 

 

 

31,517

 

 

 

31,517

 

Tangible Assets  

$

19,738,425

 

 

$

18,510,716

 

 

$

18,063,979

 

 

$

17,657,328

 

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

$

10,941,894

 

 

$

10,944,260

 

 

$

10,589,061

 

 

$

10,309,085

 

                 
Total Shareholders' Equity to Total Assets  

 

6.84

%

 

 

7.16

%

 

 

7.11

%

 

 

7.27

%

Tangible Common Equity to Tangible Assets (Non-GAAP)  

 

6.69

%

 

 

7.00

%

 

 

6.95

%

 

 

7.10

%

                 
Tier 1 Capital Ratio   

 

12.04

%

 

 

11.81

%

 

 

12.18

%

 

 

12.46

%

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

 

12.07

%

 

 

11.85

%

 

 

11.85

%

 

 

12.17

%

Note: Risk-Weighted Assets and Regulatory capital ratios as of June 30, 2020 are preliminary. Risk-Weighted Assets revised from $10,941,909 and Tier 1 Capital Ratio revised from 11.85% as of March 31, 2020.
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income                   Table 3
    Three Months Ended   Six Months Ended
    June 30,   March 31,   June 30,   June 30,
(dollars in thousands, except per share amounts)  

2020

 

2020

 

2019

 

2020

 

2019

Interest Income                    
Interest and Fees on Loans and Leases  

$

107,628

 

$

108,210

 

 

$

110,401

 

 

$

215,838

 

$

218,912

 

Income on Investment Securities                    
Available-for-Sale  

 

14,576

 

 

16,711

 

 

 

15,072

 

 

 

31,287

 

 

28,504

 

Held-to-Maturity  

 

16,723

 

 

19,252

 

 

 

22,149

 

 

 

35,975

 

 

44,070

 

Deposits  

 

1

 

 

9

 

 

 

9

 

 

 

10

 

 

24

 

Funds Sold  

 

92

 

 

546

 

 

 

730

 

 

 

638

 

 

2,174

 

Other  

 

125

 

 

218

 

 

 

210

 

 

 

343

 

 

529

 

Total Interest Income  

 

139,145

 

 

144,946

 

 

 

148,571

 

 

 

284,091

 

 

294,213

 

Interest Expense                    
Deposits  

 

7,954

 

 

14,260

 

 

 

18,628

 

 

 

22,214

 

 

33,912

 

Securities Sold Under Agreements to Repurchase  

 

4,020

 

 

4,025

 

 

 

4,623

 

 

 

8,045

 

 

9,194

 

Funds Purchased  

 

18

 

 

72

 

 

 

512

 

 

 

90

 

 

669

 

Short-Term Borrowings  

 

22

 

 

39

 

 

 

1

 

 

 

61

 

 

37

 

Other Debt  

 

440

 

 

584

 

 

 

710

 

 

 

1,024

 

 

1,467

 

Total Interest Expense  

 

12,454

 

 

18,980

 

 

 

24,474

 

 

 

31,434

 

 

45,279

 

Net Interest Income  

 

126,691

 

 

125,966

 

 

 

124,097

 

 

 

252,657

 

 

248,934

 

Provision for Credit Losses  

 

40,400

 

 

33,600

 

 

 

4,000

 

 

 

74,000

 

 

7,000

 

Net Interest Income After Provision for Credit Losses  

 

86,291

 

 

92,366

 

 

 

120,097

 

 

 

178,657

 

 

241,934

 

Noninterest Income                    
Trust and Asset Management  

 

10,550

 

 

10,915

 

 

 

11,385

 

 

 

21,465

 

 

22,146

 

Mortgage Banking  

 

4,278

 

 

2,695

 

 

 

3,336

 

 

 

6,973

 

 

5,623

 

Service Charges on Deposit Accounts  

 

5,097

 

 

7,451

 

 

 

7,283

 

 

 

12,548

 

 

14,647

 

Fees, Exchange, and Other Service Charges  

 

9,417

 

 

13,200

 

 

 

14,252

 

 

 

22,617

 

 

28,460

 

Investment Securities Gains (Losses), Net  

 

13,216

 

 

(970

)

 

 

(776

)

 

 

12,246

 

 

(1,611

)

Annuity and Insurance  

 

883

 

 

928

 

 

 

1,806

 

 

 

1,811

 

 

4,384

 

Bank-Owned Life Insurance  

 

1,649

 

 

1,580

 

 

 

1,779

 

 

 

3,229

 

 

3,489

 

Other  

 

6,178

 

 

10,350

 

 

 

6,385

 

 

 

16,528

 

 

11,991

 

Total Noninterest Income  

 

51,268

 

 

46,149

 

 

 

45,450

 

 

 

97,417

 

 

89,129

 

Noninterest Expense                    
Salaries and Benefits  

 

50,715

 

 

54,463

 

 

 

53,511

 

 

 

105,178

 

 

110,097

 

Net Occupancy  

 

8,761

 

 

8,955

 

 

 

8,579

 

 

 

17,716

 

 

16,173

 

Net Equipment  

 

8,195

 

 

8,456

 

 

 

6,895

 

 

 

16,651

 

 

13,728

 

Data Processing  

 

4,416

 

 

4,788

 

 

 

4,727

 

 

 

9,204

 

 

9,253

 

Professional Fees  

 

3,061

 

 

3,208

 

 

 

2,177

 

 

 

6,269

 

 

4,630

 

FDIC Insurance  

 

1,558

 

 

1,456

 

 

 

1,290

 

 

 

3,014

 

 

2,559

 

Other  

 

12,186

 

 

14,986

 

 

 

15,546

 

 

 

27,172

 

 

29,342

 

Total Noninterest Expense  

 

88,892

 

 

96,312

 

 

 

92,725

 

 

 

185,204

 

 

185,782

 

Income Before Provision for Income Taxes  

 

48,667

 

 

42,203

 

 

 

72,822

 

 

 

90,870

 

 

145,281

 

Provision for Income Taxes  

 

9,759

 

 

7,461

 

 

 

15,903

 

 

 

17,220

 

 

29,563

 

Net Income  

$

38,908

 

$

34,742

 

 

$

56,919

 

 

$

73,650

 

$

115,718

 

Basic Earnings Per Share  

$

0.98

 

$

0.88

 

 

$

1.40

 

 

$

1.86

 

$

2.84

 

Diluted Earnings Per Share  

$

0.98

 

$

0.87

 

 

$

1.40

 

 

$

1.85

 

$

2.82

 

Dividends Declared Per Share  

$

0.67

 

$

0.67

 

 

$

0.65

 

 

$

1.34

 

$

1.27

 

Basic Weighted Average Shares  

 

39,703,735

 

 

39,681,611

 

 

 

40,541,594

 

 

 

39,692,695

 

 

40,738,772

 

Diluted Weighted Average Shares  

 

39,832,475

 

 

39,916,986

 

 

 

40,769,767

 

 

 

39,873,334

 

 

40,988,001

 

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income       Table 4
    Three Months Ended   Six Months Ended
   

June 30,

 

March 31,

 

June 30,

 

June 30,

(dollars in thousands)  

2020

 

2020

 

2019

 

2020

 

2019

Net Income  

$

38,908

 

$

34,742

 

$

56,919

 

$

73,650

 

$

115,718

Other Comprehensive Income, Net of Tax:                    
Net Unrealized Gains on Investment Securities  

 

7,730

 

 

41,559

 

 

16,209

 

 

49,289

 

 

23,128

Defined Benefit Plans  

 

374

 

 

374

 

 

245

 

 

748

 

 

491

Other Comprehensive Income  

 

8,104

 

 

41,933

 

 

16,454

 

 

50,037

 

 

23,619

Comprehensive Income  

$

47,012

 

$

76,675

 

$

73,373

 

$

123,687

 

$

139,337

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition              

Table 5

   

June 30,

 

March 31,

 

December 31,

 

June 30,

(dollars in thousands)  

2020

 

2020

 

2019

 

2019

Assets                
Interest-Bearing Deposits in Other Banks  

$

2,310

 

 

$

6,346

 

 

$

4,979

 

 

$

3,859

 

Funds Sold  

 

800,857

 

 

 

96,898

 

 

 

254,574

 

 

 

204,340

 

Investment Securities                
Available-for-Sale  

 

2,726,478

 

 

 

2,681,049

 

 

 

2,619,003

 

 

 

2,649,949

 

Held-to-Maturity (Fair Value of $3,374,294; $3,104,020; $3,062,882; and $2,973,229)  

 

3,276,829

 

 

 

3,004,139

 

 

 

3,042,294

 

 

 

2,959,611

 

Loans Held for Sale  

 

20,711

 

 

 

20,789

 

 

 

39,062

 

 

 

22,706

 

Loans and Leases  

 

11,805,370

 

 

 

11,352,780

 

 

 

10,990,892

 

 

 

10,759,129

 

Allowance for Credit Losses  

 

(173,439

)

 

 

(138,150

)

 

 

(110,027

)

 

 

(107,672

)

Net Loans and Leases  

 

11,631,931

 

 

 

11,214,630

 

 

 

10,880,865

 

 

 

10,651,457

 

Total Earning Assets  

 

18,459,116

 

 

 

17,023,851

 

 

 

16,840,777

 

 

 

16,491,922

 

Cash and Due from Banks  

 

242,423

 

 

 

453,465

 

 

 

299,105

 

 

 

282,164

 

Premises and Equipment, Net  

 

198,582

 

 

 

196,228

 

 

 

188,388

 

 

 

169,671

 

Operating Lease Right-of-Use Assets  

 

97,166

 

 

 

98,695

 

 

 

100,838

 

 

 

103,336

 

Accrued Interest Receivable  

 

50,645

 

 

 

46,996

 

 

 

46,476

 

 

 

49,726

 

Foreclosed Real Estate  

 

2,506

 

 

 

2,506

 

 

 

2,737

 

 

 

2,737

 

Mortgage Servicing Rights  

 

22,904

 

 

 

22,537

 

 

 

25,022

 

 

 

24,233

 

Goodwill  

 

31,517

 

 

 

31,517

 

 

 

31,517

 

 

 

31,517

 

Bank-Owned Life Insurance  

 

291,185

 

 

 

289,536

 

 

 

287,962

 

 

 

285,295

 

Other Assets  

 

373,898

 

 

 

376,902

 

 

 

272,674

 

 

 

248,244

 

Total Assets  

$

19,769,942

 

 

$

18,542,233

 

 

$

18,095,496

 

 

$

17,688,845

 

                 
Liabilities                
Deposits                
Noninterest-Bearing Demand  

$

5,485,015

 

 

$

4,378,918

 

 

$

4,489,525

 

 

$

4,528,251

 

Interest-Bearing Demand  

 

3,437,654

 

 

 

3,261,101

 

 

 

3,127,205

 

 

 

3,033,066

 

Savings  

 

6,821,710

 

 

 

6,670,530

 

 

 

6,365,321

 

 

 

6,004,528

 

Time  

 

1,678,776

 

 

 

1,744,812

 

 

 

1,802,431

 

 

 

1,922,976

 

Total Deposits  

 

17,423,155

 

 

 

16,055,361

 

 

 

15,784,482

 

 

 

15,488,821

 

Funds Purchased  

 

-

 

 

 

75,000

 

 

 

-

 

 

 

-

 

Short-Term Borrowings  

 

-

 

 

 

75,000

 

 

 

-

 

 

 

-

 

Securities Sold Under Agreements to Repurchase  

 

603,206

 

 

 

603,206

 

 

 

604,306

 

 

 

504,299

 

Other Debt  

 

60,524

 

 

 

60,545

 

 

 

85,565

 

 

 

110,605

 

Operating Lease Liabilities  

 

104,741

 

 

 

106,180

 

 

 

108,210

 

 

 

110,483

 

Retirement Benefits Payable  

 

43,833

 

 

 

44,124

 

 

 

44,504

 

 

 

40,047

 

Accrued Interest Payable  

 

7,775

 

 

 

7,932

 

 

 

8,040

 

 

 

9,454

 

Taxes Payable and Deferred Taxes  

 

38,297

 

 

 

32,793

 

 

 

16,085

 

 

 

21,337

 

Other Liabilities  

 

136,329

 

 

 

154,163

 

 

 

157,472

 

 

 

117,851

 

Total Liabilities  

 

18,417,860

 

 

 

17,214,304

 

 

 

16,808,664

 

 

 

16,402,897

 

Shareholders' Equity                
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2020 - 58,263,452 / 40,047,694; March 31, 2020 - 58,251,725 / 39,996,510; December 31, 2019 - 58,166,910 / 40,039,695; and June 30, 2019 - 58,175,367 / 40,687,719)  

 

580

 

 

 

579

 

 

 

579

 

 

 

579

 

Capital Surplus  

 

586,946

 

 

 

584,392

 

 

 

582,566

 

 

 

577,346

 

Accumulated Other Comprehensive Gain (Loss)  

 

18,925

 

 

 

10,821

 

 

 

(31,112

)

 

 

(27,424

)

Retained Earnings  

 

1,786,351

 

 

 

1,773,607

 

 

 

1,761,415

 

 

 

1,704,993

 

Treasury Stock, at Cost (Shares: June 30, 2020 - 18,215,758; March 31, 2020 - 18,255,215; December 31, 2019 - 18,127,215; and June 30, 2019 - 17,487,648)  

 

(1,040,720

)

 

 

(1,041,470

)

 

 

(1,026,616

)

 

 

(969,546

)

Total Shareholders' Equity  

 

1,352,082

 

 

 

1,327,929

 

 

 

1,286,832

 

 

 

1,285,948

 

Total Liabilities and Shareholders' Equity  

$

19,769,942

 

 

$

18,542,233

 

 

$

18,095,496

 

 

$

17,688,845

 

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, 2019  

40,039,695

 

 

$

579

 

$

582,566

 

$

(31,112

)

 

$

1,761,415

 

 

$

(1,026,616

)

 

$

1,286,832

 

Net Income  

-

 

 

 

-

 

 

-

 

 

-

 

 

 

73,650

 

 

 

-

 

 

 

73,650

 

Other Comprehensive Income  

-

 

 

 

-

 

 

-

 

 

50,037

 

 

 

-

 

 

 

-

 

 

 

50,037

 

Cumulative Change in Accounting Principle  

-

 

 

 

-

 

 

-

 

 

-

 

 

 

3,632

 

 

 

-

 

 

 

3,632

 

Share-Based Compensation  

-

 

 

 

-

 

 

3,704

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,704

 

Common Stock Issued under Purchase and Equity                            
Compensation Plans  

195,351

 

 

 

1

 

 

676

 

 

-

 

 

 

1,333

 

 

 

3,041

 

 

 

5,051

 

Common Stock Repurchased  

(187,352

)

 

 

-

 

 

-

 

 

-

 

 

 

-

 

 

 

(17,145

)

 

 

(17,145

)

Cash Dividends Declared ($1.34 per share)  

-

 

 

 

-

 

 

-

 

 

-

 

 

 

(53,679

)

 

 

-

 

 

 

(53,679

)

Balance as of June 30, 2020  

40,047,694

 

 

$

580

 

$

586,946

 

$

18,925

 

 

$

1,786,351

 

 

$

(1,040,720

)

 

$

1,352,082

 

                             
Balance as of December 31, 2018  

41,499,898

 

 

$

577

 

$

571,704

 

$

(51,043

)

 

$

1,641,314

 

 

$

(894,352

)

 

$

1,268,200

 

Net Income  

-

 

 

 

-

 

 

-

 

 

-

 

 

 

115,718

 

 

 

-

 

 

 

115,718

 

Other Comprehensive Income  

-

 

 

 

-

 

 

-

 

 

23,619

 

 

 

-

 

 

 

-

 

 

 

23,619

 

Share-Based Compensation  

-

 

 

 

-

 

 

4,438

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,438

 

Common Stock Issued under Purchase and Equity                            
Compensation Plans  

174,709

 

 

 

2

 

 

1,204

 

 

-

 

 

 

162

 

 

 

2,981

 

 

 

4,349

 

Common Stock Repurchased  

(986,888

)

 

 

-

 

 

-

 

 

-

 

 

 

-

 

 

 

(78,175

)

 

 

(78,175

)

Cash Dividends Declared ($1.27 per share)  

-

 

 

 

-

 

 

-

 

 

-

 

 

 

(52,201

)

 

 

-

 

 

 

(52,201

)

Balance as of June 30, 2019  

40,687,719

 

 

$

579

 

$

577,346

 

$

(27,424

)

 

$

1,704,993

 

 

$

(969,546

)

 

$

1,285,948

 

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis                           Table 7a  
    Three Months Ended     Three Months Ended     Three Months Ended  
    June 30, 2020     March 31, 2020     June 30, 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  

$

2.6

 

$

-

 

0.18

%

 

$

1.4

 

$

-

 

2.36

%

 

$

2.9

 

$

-

 

1.25

%

Funds Sold  

 

545.9

 

 

0.1

 

0.07

   

 

152.8

 

 

0.6

 

1.41

   

 

123.6

 

 

0.8

 

2.34

 
Investment Securities                                          
Available-for-Sale                                          
Taxable  

 

2,614.1

 

 

14.3

 

2.19

   

 

2,702.4

 

 

16.4

 

2.43

   

 

2,004.3

 

 

14.3

 

2.87

 
Non-Taxable  

 

32.2

 

 

0.4

 

4.45

   

 

32.4

 

 

0.4

 

4.40

   

 

86.8

 

 

0.9

 

4.15

 
Held-to-Maturity                                          
Taxable  

 

2,957.6

 

 

16.4

 

2.22

   

 

3,036.2

 

 

18.9

 

2.50

   

 

3,358.0

 

 

21.0

 

2.50

 
Non-Taxable  

 

54.4

 

 

0.4

 

2.66

   

 

54.7

 

 

0.4

 

2.67

   

 

193.0

 

 

1.5

 

3.08

 
Total Investment Securities  

 

5,658.3

 

 

31.5

 

2.22

   

 

5,825.7

 

 

36.1

 

2.48

   

 

5,642.1

 

 

37.7

 

2.68

 
Loans Held for Sale  

 

23.4

 

 

0.2

 

3.24

   

 

23.2

 

 

0.2

 

3.54

   

 

18.7

 

 

0.2

 

4.05

 
Loans and Leases 1                                          
Commercial and Industrial  

 

1,963.8

 

 

17.9

 

3.67

   

 

1,409.3

 

 

13.2

 

3.77

   

 

1,385.7

 

 

14.9

 

4.31

 
Commercial Mortgage  

 

2,622.9

 

 

22.3

 

3.42

   

 

2,549.4

 

 

25.1

 

3.96

   

 

2,386.3

 

 

25.9

 

4.35

 
Construction  

 

255.8

 

 

2.5

 

3.93

   

 

213.2

 

 

2.5

 

4.65

   

 

125.3

 

 

1.7

 

5.51

 
Commercial Lease Financing  

 

110.9

 

 

0.5

 

1.88

   

 

111.4

 

 

0.5

 

1.95

   

 

159.9

 

 

1.0

 

2.49

 
Residential Mortgage  

 

3,939.6

 

 

36.0

 

3.65

   

 

3,895.4

 

 

36.9

 

3.79

   

 

3,730.4

 

 

36.0

 

3.87

 
Home Equity  

 

1,665.2

 

 

14.3

 

3.45

   

 

1,680.2

 

 

15.2

 

3.64

   

 

1,694.9

 

 

16.2

 

3.83

 
Automobile  

 

701.2

 

 

6.2

 

3.55

   

 

721.0

 

 

6.4

 

3.56

   

 

688.5

 

 

6.2

 

3.62

 
Other 2  

 

468.2

 

 

7.9

 

6.77

   

 

480.8

 

 

8.4

 

7.06

   

 

460.6

 

 

8.4

 

7.33

 
Total Loans and Leases  

 

11,727.6

 

 

107.6

 

3.68

   

 

11,060.7

 

 

108.2

 

3.93

   

 

10,631.6

 

 

110.3

 

4.16

 
Other  

 

34.0

 

 

0.1

 

1.47

   

 

34.3

 

 

0.2

 

2.54

   

 

35.0

 

 

0.2

 

2.40

 
Total Earning Assets 3  

 

17,991.8

 

 

139.5

 

3.11

   

 

17,098.1

 

 

145.3

 

3.41

   

 

16,453.9

 

 

149.2

 

3.63

 
Cash and Due from Banks  

 

302.4

           

 

278.8

           

 

241.6

         
Other Assets  

 

895.4

           

 

845.7

           

 

785.2

         
Total Assets  

$

19,189.6

           

$

18,222.6

           

$

17,480.7

         
                                           
Interest-Bearing Liabilities                                          
Interest-Bearing Deposits                                          
Demand  

$

3,226.6

 

 

0.6

 

0.07

   

$

3,110.0

 

 

1.0

 

0.12

   

$

2,902.5

 

 

1.4

 

0.19

 
Savings  

 

6,691.4

 

 

2.2

 

0.13

   

 

6,502.4

 

 

7.1

 

0.44

   

 

6,002.0

 

 

8.9

 

0.60

 
Time  

 

1,826.8

 

 

5.2

 

1.13

   

 

1,743.0

 

 

6.2

 

1.43

   

 

1,866.6

 

 

8.3

 

1.79

 
Total Interest-Bearing Deposits  

 

11,744.8

 

 

8.0

 

0.27

   

 

11,355.4

 

 

14.3

 

0.51

   

 

10,771.1

 

 

18.6

 

0.69

 
Short-Term Borrowings  

 

57.6

 

 

-

 

0.28

   

 

57.8

 

 

0.1

 

0.76

   

 

82.3

 

 

0.5

 

2.46

 
Securities Sold Under Agreements to Repurchase  

 

602.9

 

 

4.0

 

2.64

   

 

604.1

 

 

4.0

 

2.64

   

 

504.3

 

 

4.7

 

3.63

 
Other Debt  

 

60.5

 

 

0.5

 

2.91

   

 

66.9

 

 

0.6

 

3.51

   

 

110.6

 

 

0.7

 

2.57

 
Total Interest-Bearing Liabilities  

 

12,465.8

 

 

12.5

 

0.40

   

 

12,084.2

 

 

19.0

 

0.63

   

 

11,468.3

 

 

24.5

 

0.85

 
Net Interest Income      

$

127.0

           

$

126.3

           

$

124.7

     
Interest Rate Spread          

2.71

%

         

2.78

%

         

2.78

%

Net Interest Margin          

2.83

%

         

2.96

%

         

3.04

%

Noninterest-Bearing Demand Deposits  

 

4,934.7

           

 

4,462.3

           

 

4,391.7

         
Other Liabilities  

 

437.8

           

 

362.3

           

 

350.5

         
Shareholders' Equity  

 

1,351.3

           

 

1,313.8

           

 

1,270.2

         
Total Liabilities and Shareholders' Equity  

$

19,189.6

           

$

18,222.6

           

$

17,480.7

         
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 $358,000, $357,000, and $601,000 for the three months ended June 30, 2020, March 31, 2020, and June 30, 2019, respectively.
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis             Table 7b  
    Six Months Ended     Six Months Ended  
    June 30, 2020     June 30, 2019  
    Average   Income/   Yield/     Average   Income/   Yield/  
(dollars in millions)   Balance   Expense   Rate     Balance   Expense   Rate  
Earning Assets                            
Interest-Bearing Deposits in Other Banks  

$

2.0

 

$

-

 

0.96

%

 

$

2.9

 

$

-

 

1.65

%

Funds Sold  

 

349.3

 

 

0.6

 

0.36

   

 

182.3

 

 

2.2

 

2.37

 
Investment Securities                            
Available-for-Sale                            
Taxable  

 

2,658.3

 

 

30.8

 

2.31

   

 

1,801.2

 

 

25.9

 

2.88

 
Non-Taxable  

 

32.3

 

 

0.7

 

4.43

   

 

182.5

 

 

3.3

 

3.63

 
Held-to-Maturity                            
Taxable  

 

2,996.9

 

 

35.4

 

2.36

   

 

3,365.7

 

 

41.5

 

2.46

 
Non-Taxable  

 

54.5

 

 

0.7

 

2.67

   

 

213.4

 

 

3.3

 

3.12

 
Total Investment Securities  

 

5,742.0

 

 

67.6

 

2.35

   

 

5,562.8

 

 

74.0

 

2.66

 
Loans Held for Sale  

 

23.3

 

 

0.4

 

3.39

   

 

15.6

 

 

0.3

 

4.16

 
Loans and Leases 1                            
Commercial and Industrial  

 

1,686.5

 

 

31.1

 

3.71

   

 

1,371.8

 

 

30.2

 

4.43

 
Commercial Mortgage  

 

2,586.2

 

 

47.4

 

3.69

   

 

2,348.6

 

 

50.7

 

4.36

 
Construction  

 

234.6

 

 

5.0

 

4.26

   

 

137.8

 

 

3.6

 

5.27

 
Commercial Lease Financing  

 

111.1

 

 

1.1

 

1.91

   

 

160.4

 

 

1.9

 

2.38

 
Residential Mortgage  

 

3,917.5

 

 

72.9

 

3.72

   

 

3,705.4

 

 

71.5

 

3.86

 
Home Equity  

 

1,672.7

 

 

29.5

 

3.55

   

 

1,692.5

 

 

32.3

 

3.85

 
Automobile  

 

711.1

 

 

12.6

 

3.56

   

 

678.4

 

 

12.3

 

3.64

 
Other 2  

 

474.5

 

 

16.3

 

6.92

   

 

455.0

 

 

16.3

 

7.23

 
Total Loans and Leases  

 

11,394.2

 

 

215.9

 

3.80

   

 

10,549.9

 

 

218.8

 

4.17

 
Other  

 

34.2

 

 

0.3

 

2.01

   

 

35.2

 

 

0.5

 

3.00

 
Total Earning Assets 3  

 

17,545.0

 

 

284.8

 

3.26

   

 

16,348.7

 

 

295.8

 

3.63

 
Cash and Due from Banks  

 

290.6

           

 

241.2

         
Other Assets  

 

870.5

           

 

769.1

         
Total Assets  

$

18,706.1

           

$

17,359.0

         
                             
Interest-Bearing Liabilities                            
Interest-Bearing Deposits                            
Demand  

$

3,168.3

 

 

1.5

 

0.10

   

$

2,921.1

 

 

2.8

 

0.20

 
Savings  

 

6,596.9

 

 

9.3

 

0.28

   

 

5,882.1

 

 

15.7

 

0.54

 
Time  

 

1,784.9

 

 

11.4

 

1.28

   

 

1,785.4

 

 

15.4

 

1.74

 
Total Interest-Bearing Deposits  

 

11,550.1

 

 

22.2

 

0.39

   

 

10,588.6

 

 

33.9

 

0.65

 
Short-Term Borrowings  

 

57.7

 

 

0.2

 

0.52

   

 

56.8

 

 

0.7

 

2.47

 
Securities Sold Under Agreements to Repurchase  

 

603.5

 

 

8.0

 

2.64

   

 

504.3

 

 

9.2

 

3.63

 
Other Debt  

 

63.7

 

 

1.0

 

3.23

   

 

115.3

 

 

1.5

 

2.56

 
Total Interest-Bearing Liabilities  

 

12,275.0

 

 

31.4

 

0.51

   

 

11,265.0

 

 

45.3

 

0.81

 
Net Interest Income      

$

253.4

           

$

250.5

     
Interest Rate Spread          

2.75

%

         

2.82

%

Net Interest Margin          

2.90

%

         

3.08

%

Noninterest-Bearing Demand Deposits  

 

4,698.5

           

 

4,479.0

         
Other Liabilities  

 

400.0

           

 

346.2

         
Shareholders' Equity  

 

1,332.6

           

 

1,268.8

         
Total Liabilities and Shareholders' Equity  

$

18,706.1

           

$

17,359.0

         
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 $715,000 and $1,582,000 for the six months ended June 30, 2020 and June 30, 2019, respectively.
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis           Table 8a
    Three Months Ended June 30, 2020
    Compared to March 31, 2020
(dollars in millions)   Volume 1   Rate 1   Total
Change in Interest Income:            
Funds Sold  

$

0.4

 

 

$

(0.9

)

 

$

(0.5

)

Investment Securities            
Available-for-Sale            
Taxable  

 

(0.5

)

 

 

(1.6

)

 

 

(2.1

)

Held-to-Maturity            
Taxable  

 

(0.5

)

 

 

(2.0

)

 

 

(2.5

)

Total Investment Securities  

 

(1.0

)

 

 

(3.6

)

 

 

(4.6

)

Loans and Leases            
Commercial and Industrial  

 

5.1

 

 

 

(0.4

)

 

 

4.7

 

Commercial Mortgage  

 

0.7

 

 

 

(3.5

)

 

 

(2.8

)

Construction  

 

0.4

 

 

 

(0.4

)

 

 

-

 

Residential Mortgage  

 

0.4

 

 

 

(1.3

)

 

 

(0.9

)

Home Equity  

 

(0.1

)

 

 

(0.8

)

 

 

(0.9

)

Automobile  

 

(0.2

)

 

 

-

 

 

 

(0.2

)

Other 2  

 

(0.2

)

 

 

(0.3

)

 

 

(0.5

)

Total Loans and Leases  

 

6.1

 

 

 

(6.7

)

 

 

(0.6

)

Other  

 

-

 

 

 

(0.1

)

 

 

(0.1

)

Total Change in Interest Income  

 

5.5

 

 

 

(11.3

)

 

 

(5.8

)

             
Change in Interest Expense:            
Interest-Bearing Deposits            
Demand  

 

-

 

 

 

(0.4

)

 

 

(0.4

)

Savings  

 

0.2

 

 

 

(5.1

)

 

 

(4.9

)

Time  

 

0.3

 

 

 

(1.3

)

 

 

(1.0

)

Total Interest-Bearing Deposits  

 

0.5

 

 

 

(6.8

)

 

 

(6.3

)

Short-Term Borrowings  

 

-

 

 

 

(0.1

)

 

 

(0.1

)

Other Debt  

 

(0.1

)

 

 

-

 

 

 

(0.1

)

Total Change in Interest Expense  

 

0.4

 

 

 

(6.9

)

 

 

(6.5

)

             
Change in Net Interest Income  

$

5.1

 

 

$

(4.4

)

 

$

0.7

 

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 June 30, 2020
    Compared to June 30, 2019
(dollars in millions)   Volume 1   Rate 1   Total
Change in Interest Income:            
Funds Sold  

$

0.6

 

 

$

(1.3

)

 

$

(0.7

)

Investment Securities            
Available-for-Sale            
Taxable  

 

3.8

 

 

 

(3.8

)

 

 

-

 

Non-Taxable  

 

(0.6

)

 

 

0.1

 

 

 

(0.5

)

Held-to-Maturity            
Taxable  

 

(2.4

)

 

 

(2.2

)

 

 

(4.6

)

Non-Taxable  

 

(0.9

)

 

 

(0.2

)

 

 

(1.1

)

Total Investment Securities  

 

(0.1

)

 

 

(6.1

)

 

 

(6.2

)

Loans and Leases            
Commercial and Industrial  

 

5.5

 

 

 

(2.5

)

 

 

3.0

 

Commercial Mortgage  

 

2.3

 

 

 

(5.9

)

 

 

(3.6

)

Construction  

 

1.4

 

 

 

(0.6

)

 

 

0.8

 

Commercial Lease Financing  

 

(0.3

)

 

 

(0.2

)

 

 

(0.5

)

Residential Mortgage  

 

2.0

 

 

 

(2.0

)

 

 

-

 

Home Equity  

 

(0.3

)

 

 

(1.6

)

 

 

(1.9

)

Automobile  

 

0.1

 

 

 

(0.1

)

 

 

-

 

Other 2  

 

0.1

 

 

 

(0.6

)

 

 

(0.5

)

Total Loans and Leases  

 

10.8

 

 

 

(13.5

)

 

 

(2.7

)

Other  

 

-

 

 

 

(0.1

)

 

 

(0.1

)

Total Change in Interest Income  

 

11.3

 

 

 

(21.0

)

 

 

(9.7

)

             
Change in Interest Expense:            
Interest-Bearing Deposits            
Demand  

 

0.1

 

 

 

(0.9

)

 

 

(0.8

)

Savings  

 

0.9

 

 

 

(7.6

)

 

 

(6.7

)

Time  

 

(0.1

)

 

 

(3.0

)

 

 

(3.1

)

Total Interest-Bearing Deposits  

 

0.9

 

 

 

(11.5

)

 

 

(10.6

)

Short-Term Borrowings  

 

(0.1

)

 

 

(0.4

)

 

 

(0.5

)

Securities Sold Under Agreements to Repurchase  

 

0.8

 

 

 

(1.5

)

 

 

(0.7

)

Other Debt  

 

(0.4

)

 

 

0.2

 

 

 

(0.2

)

Total Change in Interest Expense  

 

1.2

 

 

 

(13.2

)

 

 

(12.0

)

             
Change in Net Interest Income  

$

10.1

 

 

$

(7.8

)

 

$

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
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis           Table 8c
    Six Months Ended June 30, 2020
    Compared to June 30, 2019
(dollars in millions)   Volume 1   Rate 1   Total
Change in Interest Income:            
Funds Sold  

$

1.1

 

 

$

(2.7

)

 

$

(1.6

)

Investment Securities            
Available-for-Sale            
Taxable  

 

10.7

 

 

 

(5.8

)

 

 

4.9

 

Non-Taxable  

 

(3.2

)

 

 

0.6

 

 

 

(2.6

)

Held-to-Maturity            
Taxable  

 

(4.4

)

 

 

(1.7

)

 

 

(6.1

)

Non-Taxable  

 

(2.2

)

 

 

(0.4

)

 

 

(2.6

)

Total Investment Securities  

 

0.9

 

 

 

(7.3

)

 

 

(6.4

)

Loans Held for Sale  

 

0.1

 

 

 

-

 

 

 

0.1

 

Loans and Leases            
Commercial and Industrial  

 

6.3

 

 

 

(5.4

)

 

 

0.9

 

Commercial Mortgage  

 

4.9

 

 

 

(8.2

)

 

 

(3.3

)

Construction  

 

2.2

 

 

 

(0.8

)

 

 

1.4

 

Commercial Lease Financing  

 

(0.5

)

 

 

(0.3

)

 

 

(0.8

)

Residential Mortgage  

 

4.0

 

 

 

(2.6

)

 

 

1.4

 

Home Equity  

 

(0.4

)

 

 

(2.4

)

 

 

(2.8

)

Automobile  

 

0.6

 

 

 

(0.3

)

 

 

0.3

 

Other 2  

 

0.7

 

 

 

(0.7

)

 

 

-

 

Total Loans and Leases  

 

17.8

 

 

 

(20.7

)

 

 

(2.9

)

Other  

 

-

 

 

 

(0.2

)

 

 

(0.2

)

Total Change in Interest Income  

 

19.9

 

 

 

(30.9

)

 

 

(11.0

)

             
Change in Interest Expense:            
Interest-Bearing Deposits            
Demand  

 

0.2

 

 

 

(1.5

)

 

 

(1.3

)

Savings  

 

1.7

 

 

 

(8.1

)

 

 

(6.4

)

Time  

 

-

 

 

 

(4.0

)

 

 

(4.0

)

Total Interest-Bearing Deposits  

 

1.9

 

 

 

(13.6

)

 

 

(11.7

)

Short-Term Borrowings  

 

-

 

 

 

(0.5

)

 

 

(0.5

)

Securities Sold Under Agreements to Repurchase  

 

1.6

 

 

 

(2.8

)

 

 

(1.2

)

Other Debt  

 

(0.8

)

 

 

0.3

 

 

 

(0.5

)

Total Change in Interest Expense  

 

2.7

 

 

 

(16.6

)

 

 

(13.9

)

             
Change in Net Interest Income  

$

17.2

 

 

$

(14.3

)

 

$

2.9

 

1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits                   Table 9
    Three Months Ended   Six Months Ended
    June 30,   March 31,   June 30,   June 30,
(dollars in thousands)  

2020

 

2020

 

2019

 

2020

 

2019

Salaries  

$

32,739

 

$

33,486

 

$

32,834

 

$

66,225

 

$

65,314

Incentive Compensation  

 

3,141

 

 

245

 

 

5,464

 

 

3,386

 

 

11,368

Share-Based Compensation  

 

2,021

 

 

1,291

 

 

1,994

 

 

3,312

 

 

5,073

Commission Expense  

 

1,647

 

 

1,374

 

 

1,704

 

 

3,021

 

 

2,634

Retirement and Other Benefits  

 

4,446

 

 

4,706

 

 

4,580

 

 

9,152

 

 

9,687

Payroll Taxes  

 

2,782

 

 

4,543

 

 

2,643

 

 

7,325

 

 

6,890

Medical, Dental, and Life Insurance  

 

3,830

 

 

4,142

 

 

3,926

 

 

7,972

 

 

8,391

Separation Expense  

 

109

 

 

4,676

 

 

366

 

 

4,785

 

 

740

Total Salaries and Benefits  

$

50,715

 

$

54,463

 

$

53,511

 

$

105,178

 

$

110,097

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances              

Table 10

   

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

(dollars in thousands)  

2020

 

2020

 

2019

 

2019

 

2019

Commercial                    
Commercial and Industrial  

$

1,956,939

 

$

1,558,232

 

$

1,379,152

 

$

1,361,011

 

$

1,408,729

Commercial Mortgage  

 

2,707,534

 

 

2,616,243

 

 

2,518,051

 

 

2,477,296

 

 

2,411,289

Construction  

 

245,099

 

 

245,390

 

 

194,170

 

 

154,754

 

 

119,228

Lease Financing  

 

113,187

 

 

110,704

 

 

122,454

 

 

163,672

 

 

163,070

Total Commercial  

 

5,022,759

 

 

4,530,569

 

 

4,213,827

 

 

4,156,733

 

 

4,102,316

Consumer                    
Residential Mortgage  

 

3,989,393

 

 

3,928,183

 

 

3,891,100

 

 

3,846,511

 

 

3,785,006

Home Equity  

 

1,640,887

 

 

1,692,154

 

 

1,676,073

 

 

1,681,951

 

 

1,694,577

Automobile  

 

700,702

 

 

716,214

 

 

720,286

 

 

713,424

 

 

703,523

Other 1  

 

451,629

 

 

485,660

 

 

489,606

 

 

482,679

 

 

473,707

Total Consumer  

 

6,782,611

 

 

6,822,211

 

 

6,777,065

 

 

6,724,565

 

 

6,656,813

Total Loans and Leases  

$

11,805,370

 

$

11,352,780

 

$

10,990,892

 

$

10,881,298

 

$

10,759,129

                     
                     
Deposits                
   

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

(dollars in thousands)  

2020

 

2020

 

2019

 

2019

 

2019

Consumer  

$

8,766,885

 

$

8,294,464

 

$

8,118,494

 

$

7,893,454

 

$

7,880,284

Commercial  

 

7,295,033

 

 

6,358,583

 

 

6,324,214

 

 

6,153,492

 

 

6,178,984

Public and Other  

 

1,361,237

 

 

1,402,314

 

 

1,341,774

 

 

1,293,806

 

 

1,429,553

Total Deposits  

$

17,423,155

 

$

16,055,361

 

$

15,784,482

 

$

15,340,752

 

$

15,488,821

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

   

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

(dollars in thousands)  

2020

 

2020

 

2019

 

2019

 

2019

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

$

459

 

 

$

634

 

 

$

830

 

 

$

573

 

 

$

552

 

Commercial Mortgage  

 

8,672

 

 

 

9,048

 

 

 

9,244

 

 

 

11,088

 

 

 

11,310

 

Total Commercial  

 

9,131

 

 

 

9,682

 

 

 

10,074

 

 

 

11,661

 

 

 

11,862

 

Consumer                    
Residential Mortgage  

 

5,888

 

 

 

4,330

 

 

 

4,125

 

 

 

4,258

 

 

 

4,697

 

Home Equity  

 

5,176

 

 

 

4,086

 

 

 

3,181

 

 

 

2,787

 

 

 

2,486

 

Total Consumer  

 

11,064

 

 

 

8,416

 

 

 

7,306

 

 

 

7,045

 

 

 

7,183

 

Total Non-Accrual Loans and Leases  

 

20,195

 

 

 

18,098

 

 

 

17,380

 

 

 

18,706

 

 

 

19,045

 

Foreclosed Real Estate  

 

2,506

 

 

 

2,506

 

 

 

2,737

 

 

 

2,939

 

 

 

2,737

 

Total Non-Performing Assets  

$

22,701

 

 

$

20,604

 

 

$

20,117

 

 

$

21,645

 

 

$

21,782

 

                     
Accruing Loans and Leases Past Due 90 Days or More                    
Commercial                    
Commercial and Industrial  

$

-

 

 

$

-

 

 

$

-

 

 

$

81

 

 

$

-

 

Total Commercial  

 

-

 

 

 

-

 

 

 

-

 

 

 

81

 

 

 

-

 

Consumer                    
Residential Mortgage  

 

4,937

 

 

 

3,024

 

 

 

1,839

 

 

 

2,032

 

 

 

1,859

 

Home Equity  

 

3,519

 

 

 

3,426

 

 

 

4,125

 

 

 

2,320

 

 

 

2,981

 

Automobile  

 

133

 

 

 

866

 

 

 

949

 

 

 

582

 

 

 

607

 

Other 1  

 

296

 

 

 

1,205

 

 

 

1,493

 

 

 

1,076

 

 

 

963

 

Total Consumer  

 

8,885

 

 

 

8,521

 

 

 

8,406

 

 

 

6,010

 

 

 

6,410

 

Total Accruing Loans and Leases Past Due 90 Days or More  

$

8,885

 

 

$

8,521

 

 

$

8,406

 

 

$

6,091

 

 

$

6,410

 

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

$

59,713

 

 

$

61,425

 

 

$

63,103

 

 

$

46,178

 

 

$

48,563

 

Total Loans and Leases  

$

11,805,370

 

 

$

11,352,780

 

 

$

10,990,892

 

 

$

10,881,298

 

 

$

10,759,129

 

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

 

0.17

%

 

 

0.16

%

 

 

0.16

%

 

 

0.17

%

 

 

0.18

%

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

 

0.19

%

 

 

0.18

%

 

 

0.18

%

 

 

0.20

%

 

 

0.20

%

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

 

0.18

%

 

 

0.21

%

 

 

0.24

%

 

 

0.28

%

 

 

0.29

%

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

 

0.20

%

 

 

0.16

%

 

 

0.15

%

 

 

0.15

%

 

 

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  

 

0.27

%

 

 

0.26

%

 

 

0.26

%

 

 

0.25

%

 

 

0.26

%

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

 

20,604

 

 

$

20,117

 

 

$

21,645

 

 

$

21,782

 

 

$

17,925

 

Additions  

 

5,856

 

 

 

1,754

 

 

 

883

 

 

 

1,035

 

 

 

6,186

 

Reductions                    
Payments  

 

(2,736

)

 

 

(315

)

 

 

(495

)

 

 

(984

)

 

 

(441

)

Return to Accrual Status  

 

(822

)

 

 

(437

)

 

 

(1,673

)

 

 

-

 

 

 

(1,344

)

Sales of Foreclosed Real Estate  

 

-

 

 

 

(231

)

 

 

(201

)

 

 

-

 

 

 

(374

)

Charge-offs/Write-downs  

 

(201

)

 

 

(284

)

 

 

(42

)

 

 

(188

)

 

 

(170

)

Total Reductions  

 

(3,759

)

 

 

(1,267

)

 

 

(2,411

)

 

 

(1,172

)

 

 

(2,329

)

Balance at End of Quarter  

$

22,701

 

 

$

20,604

 

 

$

20,117

 

 

$

21,645

 

 

$

21,782

 

1 Comprised of other revolving credit, installment, and lease financing.
Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses                   Table 12
    Three Months Ended   Six Months Ended
    June 30,   March 31,   June 30,   June 30,
(dollars in thousands)  

2020

 

2020

 

2019

 

2020

 

2019

Balance at Beginning of Period  

$

141,467

 

 

$

116,849

 

 

 

112,845

 

 

$

116,849

 

 

 

113,515

 

CECL Adoption (Day 1) Impact  

 

-

 

 

 

(5,072

)

 

 

-

 

 

 

(5,072

)

 

 

-

 

Loans and Leases Charged-Off                    
Commercial                    
Commercial and Industrial  

 

(656

)

 

 

(693

)

 

 

(206

)

 

 

(1,349

)

 

 

(576

)

Commercial Mortgage  

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,616

)

Consumer                    
Residential Mortgage  

 

(64

)

 

 

(20

)

 

 

(51

)

 

 

(84

)

 

 

(55

)

Home Equity  

 

(273

)

 

 

-

 

 

 

(145

)

 

 

(273

)

 

 

(440

)

Automobile  

 

(3,114

)

 

 

(2,500

)

 

 

(1,691

)

 

 

(5,614

)

 

 

(3,444

)

Other 1  

 

(4,176

)

 

 

(3,964

)

 

 

(3,036

)

 

 

(8,140

)

 

 

(5,826

)

Total Loans and Leases Charged-Off  

 

(8,283

)

 

 

(7,177

)

 

 

(5,129

)

 

 

(15,460

)

 

 

(11,957

)

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

 

1,524

 

 

 

289

 

 

 

401

 

 

 

1,813

 

 

 

902

 

Commercial Mortgage  

 

-

 

 

 

40

 

 

 

-

 

 

 

40

 

 

 

-

 

Consumer                    
Residential Mortgage  

 

118

 

 

 

263

 

 

 

95

 

 

 

381

 

 

 

579

 

Home Equity  

 

321

 

 

 

976

 

 

 

746

 

 

 

1,297

 

 

 

1,334

 

Automobile  

 

547

 

 

 

1,005

 

 

 

908

 

 

 

1,552

 

 

 

1,789

 

Other 1  

 

662

 

 

 

864

 

 

 

628

 

 

 

1,526

 

 

 

1,332

 

Total Recoveries on Loans and Leases Previously Charged-Off  

 

3,172

 

 

 

3,437

 

 

 

2,778

 

 

 

6,609

 

 

 

5,936

 

Net Loans and Leases Charged-Off  

 

(5,111

)

 

 

(3,740

)

 

 

(2,351

)

 

 

(8,851

)

 

 

(6,021

)

Provision for Credit Losses  

 

40,400

 

 

 

33,600

 

 

 

4,000

 

 

 

74,000

 

 

 

7,000

 

Provision for Unfunded Commitments  

 

(798

)

 

 

(170

)

 

 

-

 

 

 

(968

)

 

 

-

 

Balance at End of Period 2  

$

175,958

 

 

$

141,467

 

 

$

114,494

 

 

$

175,958

 

 

$

114,494

 

                     
Components                    
Allowance for Credit Losses  

$

173,439

 

 

$

138,150

 

 

$

107,672

 

 

$

173,439

 

 

$

107,672

 

Reserve for Unfunded Commitments  

 

2,519

 

 

 

3,317

 

 

 

6,822

 

 

 

2,519

 

 

 

6,822

 

Total Reserve for Credit Losses  

$

175,958

 

 

$

141,467

 

 

$

114,494

 

 

$

175,958

 

 

$

114,494

 

                     
Average Loans and Leases Outstanding  

$

11,727,649

 

 

$

11,060,707

 

 

$

10,631,558

 

 

$

11,394,178

 

 

$

10,549,893

 

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

 

0.18

%

 

 

0.14

%

 

 

0.09

%

 

 

0.16

%

 

 

0.12

%

Ratio of Allowance for Credit Losses to Loans and Leases Outstanding  

 

1.47

%

 

 

1.22

%

 

 

1.00

%

 

 

1.47

%

 

 

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.
Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information               Table 13a
    Consumer   Commercial   Treasury   Consolidated
(dollars in thousands)   Banking   Banking   and Other   Total
Three Months Ended June 30, 2020                
Net Interest Income  

$

73,221

 

 

$

51,219

 

 

$

2,251

 

 

$

126,691

 

Provision for Credit Losses  

 

6,137

 

 

 

(1,025

)

 

 

35,288

 

 

 

40,400

 

Net Interest Income (Loss) After Provision for Credit Losses  

 

67,084

 

 

 

52,244

 

 

 

(33,037

)

 

 

86,291

 

Noninterest Income  

 

28,943

 

 

 

7,076

 

 

 

15,249

 

 

 

51,268

 

Noninterest Expense  

 

(70,744

)

 

 

(14,776

)

 

 

(3,372

)

 

 

(88,892

)

Income (Loss) Before Provision for Income Taxes  

 

25,283

 

 

 

44,544

 

 

 

(21,160

)

 

 

48,667

 

Provision for Income Taxes  

 

(6,451

)

 

 

(10,940

)

 

 

7,632

 

 

 

(9,759

)

Net Income (Loss)  

$

18,832

 

 

$

33,604

 

 

$

(13,528

)

 

$

38,908

 

Total Assets as of June 30, 2020  

$

7,416,337

 

 

$

5,033,297

 

 

$

7,320,308

 

 

$

19,769,942

 

                 
Three Months Ended June 30, 2019 1                
Net Interest Income  

$

77,063

 

 

$

45,703

 

 

$

1,331

 

 

$

124,097

 

Provision for Credit Losses  

 

2,526

 

 

 

(175

)

 

 

1,649

 

 

 

4,000

 

Net Interest Income (Loss) After Provision for Credit Losses  

 

74,537

 

 

 

45,878

 

 

 

(318

)

 

 

120,097

 

Noninterest Income  

 

35,967

 

 

 

6,938

 

 

 

2,545

 

 

 

45,450

 

Noninterest Expense  

 

(68,543

)

 

 

(21,260

)

 

 

(2,922

)

 

 

(92,725

)

Income (Loss) Before Provision for Income Taxes  

 

41,961

 

 

 

31,556

 

 

 

(695

)

 

 

72,822

 

Provision for Income Taxes  

 

(10,405

)

 

 

(7,945

)

 

 

2,447

 

 

 

(15,903

)

Net Income  

$

31,556

 

 

$

23,611

 

 

$

1,752

 

 

$

56,919

 

Total Assets as of June 30, 2019 1  

$

6,924,338

 

 

$

4,089,452

 

 

$

6,675,055

 

 

$

17,688,845

 

1 Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information               Table 13b
    Consumer   Commercial   Treasury   Consolidated
(dollars in thousands)   Banking   Banking   and Other   Total
Six Months Ended June 30, 2020 1                
Net Interest Income  

$

147,135

 

 

$

96,456

 

 

$

9,066

 

 

$

252,657

 

Provision for Credit Losses  

 

9,588

 

 

 

(735

)

 

 

65,147

 

 

 

74,000

 

Net Interest Income (Loss) After Provision for Credit Losses  

 

137,547

 

 

 

97,191

 

 

 

(56,081

)

 

 

178,657

 

Noninterest Income  

 

61,533

 

 

 

18,811

 

 

 

17,073

 

 

 

97,417

 

Noninterest Expense  

 

(141,644

)

 

 

(32,122

)

 

 

(11,438

)

 

 

(185,204

)

Income (Loss) Before Provision for Income Taxes  

 

57,436

 

 

 

83,880

 

 

 

(50,446

)

 

 

90,870

 

Provision for Income Taxes  

 

(14,527

)

 

 

(20,494

)

 

 

17,801

 

 

 

(17,220

)

Net Income (Loss)  

$

42,909

 

 

$

63,386

 

 

$

(32,645

)

 

$

73,650

 

Total Assets as of June 30, 2020  

$

7,416,337

 

 

$

5,033,297

 

 

$

7,320,308

 

 

$

19,769,942

 

                 
Six Months Ended June 30, 2019 1                
Net Interest Income  

$

153,415

 

 

$

92,993

 

 

$

2,526

 

 

$

248,934

 

Provision for Credit Losses  

 

4,750

 

 

 

1,271

 

 

 

979

 

 

 

7,000

 

Net Interest Income After Provision for Credit Losses  

 

148,665

 

 

 

91,722

 

 

 

1,547

 

 

 

241,934

 

Noninterest Income  

 

70,445

 

 

 

13,999

 

 

 

4,685

 

 

 

89,129

 

Noninterest Expense  

 

(137,970

)

 

 

(42,215

)

 

 

(5,597

)

 

 

(185,782

)

Income Before Provision for Income Taxes  

 

81,140

 

 

 

63,506

 

 

 

635

 

 

 

145,281

 

Provision for Income Taxes  

 

(20,239

)

 

 

(13,947

)

 

 

4,623

 

 

 

(29,563

)

Net Income  

$

60,901

 

 

$

49,559

 

 

$

5,258

 

 

$

115,718

 

Total Assets as of June 30, 2019 1  

$

6,924,338

 

 

$

4,089,452

 

 

$

6,675,055

 

 

$

17,688,845

 

1 Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data                          

Table 14

 
    Three Months Ended  
   

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 
(dollars in thousands, except per share amounts)  

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

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

$

107,628

   

$

108,210

 

   

$

109,223

 

   

$

110,877

 

   

$

110,401

 

 
Income on Investment Securities                              
Available-for-Sale  

 

14,576

   

 

16,711

 

   

 

16,158

 

   

 

17,512

 

   

 

15,072

 

 
Held-to-Maturity  

 

16,723

   

 

19,252

 

   

 

18,750

 

   

 

18,796

 

   

 

22,149

 

 
Deposits  

 

1

   

 

9

 

   

 

8