UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
Date of Report |
|
|
|
(Date of earliest event reported) |
October 25, 2010 |
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BANK OF HAWAII CORPORATION
(Exact name of registrant as specified in its charter)
Delaware |
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1-6887 |
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99-0148992 |
(State of Incorporation) |
|
(Commission |
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(IRS Employer |
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File Number) |
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Identification No.) |
130 Merchant Street, Honolulu, Hawaii |
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96813 |
(Address of principal executive offices) |
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(Zip Code) |
(Registrants telephone number, including area code) (888) 643-3888
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))
Item 2.02. Results of Operations and Financial Condition.
On October 25, 2010, Bank of Hawaii Corporation (the Company) announced its results of operations for the quarter ended September 30, 2010. The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. |
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99.1 |
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October 25, 2010 Press Release: Bank of Hawaii Corporation Third Quarter 2010 Financial Results. Any internet addresses provided in this release are for informational purposes only and are not intended to be hyperlinks. Furnished herewith. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 25, 2010 |
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BANK OF HAWAII CORPORATION |
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By |
/s/ MARK A. ROSSI |
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Mark A. Rossi |
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Vice Chairman and Corporate Secretary |
Exhibit 99.1
Bank of Hawaii Corporation Third Quarter 2010 Financial Results
· Diluted Earnings Per Share $0.91
· Net Income for the Quarter $44.1 Million
· Board of Directors Declares Dividend of $0.45 Per Share
FOR IMMEDIATE RELEASE
HONOLULU, HI (October 25, 2010) Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.91 for the third quarter of 2010, up $0.15 or 20 percent from diluted earnings per share of $0.76 in the same quarter last year. Net income for the third quarter of 2010 was $44.1 million compared to net income of $36.5 million in the third quarter of 2009. The return on average assets for the third quarter of 2010 was 1.37 percent compared to 1.21 percent during the same quarter last year. The return on average equity for the third quarter of 2010 was 16.64 percent compared to 16.44 percent for the third quarter of 2009.
Average total deposits increased to $9.6 billion during the third quarter of 2010 compared to average deposits of $9.4 billion in the second quarter of 2010. Shareholders equity increased to $1.04 billion at the end of the quarter. The allowance for loan and lease losses was unchanged at $147.4 million, representing 2.77 percent of outstanding loans and leases.
Bank of Hawaii Corporation had good results for the third quarter of 2010, said Peter S. Ho, Chairman, CEO, and President. We were able to increase our capital, maintain our profitability, and our Board affirmed our dividend. During the quarter, we repurchased 208.5 thousand shares of common stock at a total cost of $9.8 million. The Hawaii economy remains stable and we are pleased with our year-to-date financial results, including our improved credit quality. We are hopeful that our loan balances will begin to stabilize in the near future although we remain cautious about revenue headwinds resulting from financial reform legislation, the possibility of lower interest rates, and the ability to generate sustained future loan growth.
For the nine months ended September 30, 2010, net income was $143.4 million compared to net income of $103.5 million for the same period last year. Diluted earnings per share were $2.96 for the nine-month period in 2010, up from $2.16 for the same period in 2009. The year-to-date return on average assets was 1.52 percent compared to 1.19 percent for the same period in 2009. The year-to-date return on average equity was 19.28 percent, up from 16.24 percent for the nine months ended September 30, 2009.
- more -
Results for the nine months ended September 30, 2010 included $42.8 million in net gains on investment securities, interest recoveries of $2.8 million, a net gain of $2.9 million on the sale of the Companys Pacific Capital Funds, and a gain of $0.9 million from a contingent payment received in the third quarter of 2010 related to the sale of the Companys retail insurance brokerage business in 2009. These gains were partially offset by $5.2 million in early termination costs related to prepayment of $75.0 million in debt (securities sold under agreements to repurchase), a $3.7 million increase in the allowance for loan and lease losses, and $3.3 million for employee cash grants for the purchase of Company stock. Results for the same period in 2009 included gains of $13.7 million from the disposition of leased equipment and the sale of the Companys retail insurance brokerage business. These gains were offset by increases in the allowance for loan and lease losses, an industry-wide FDIC special assessment, expenses for legal contingencies, an impairment of a leveraged lease residual value, and early debt retirement. Details of these items are included in Table 2.
Financial Highlights
Net interest income, on a taxable equivalent basis, for the third quarter of 2010 was $98.8 million, down $5.3 million from net interest income of $104.2 million in the second quarter of 2010, and down $10.4 million from net interest income of $109.2 million in the third quarter of 2009. The decrease compared to the previous quarter was largely due to lower interest rates and lower loan balances. For the nine months ended September 30, 2010, net interest income, on a taxable-equivalent basis, was $310.9 million compared to $309.7 million for the same period in 2009. Analyses of the changes in net interest income are included in Tables 7a, 7b and 7c.
The net interest margin was 3.27 percent for the third quarter of 2010, a decrease of 24 basis points from 3.51 percent in the second quarter of 2010, and a 58 basis point decrease from 3.85 percent in the third quarter of 2009. For the nine months ended September 30, 2010, the net interest margin was 3.50 percent compared to 3.78 percent for the same nine months in 2009. The decrease in the net interest margin was largely the result of lower interest rates, a change in the balance sheet mix due to the higher percentage of investment securities compared with loans, and the Companys strategy to maintain a lower risk investment portfolio.
Results for the third quarter of 2010 included a provision for credit losses of $13.4 million compared with $15.9 million in the second quarter of 2010 and $27.5 million in the third quarter of 2009. The provision for credit losses equaled net charge-offs in the third quarter of 2010. The provision for credit losses exceeded net charge-offs by $1.0 million in the second quarter of 2010 and $5.2 million in the third quarter of 2009.
Noninterest income was $63.1 million for the third quarter of 2010, a decrease of $5.7 million compared to $68.9 million in the second quarter of 2010, and up $6.3 million from $56.8 million in the third quarter of 2009. Noninterest income in the third quarter of 2010 included net securities gains of $7.9 million, $3.8 million related to the previously mentioned Pacific Capital Funds and insurance business sales, and a loss of $1.4 million related to the disposition of a leveraged lease. Noninterest income in the second quarter of 2010 included net securities gains of $15.0 million and a gain of $1.2 million related to the disposition of leased equipment.
Noninterest expense was $89.9 million in the third quarter of 2010, up $4.0 million from $85.9 million in the previous quarter, and up $5.9 million from $84.0 million in the same quarter last year. Noninterest expense in the third quarter of 2010 included $5.2 million for the early termination of debt (securities sold under agreements to repurchase). Noninterest expense in the second quarter of 2010 included $3.3 million for the previously mentioned employee cash grants. An analysis of salary and benefit expenses is included in Table 8.
The efficiency ratio for the third quarter of 2010 was 55.57 percent, compared with an efficiency ratio of 49.72 percent in the previous quarter and 50.69 percent in the same quarter last year. The efficiency ratio for the nine-month period ended September 30, 2010 was 50.10 percent compared with 52.74 percent for the same period last year.
The effective tax rate for the third quarter of 2010 was 24.68 percent, compared to 34.37 percent in the previous quarter, and 32.71 percent during the third quarter last year. Taxes in the third quarter of 2010 included a $4.4 million net credit related to the disposition of two leveraged leases.
The Companys business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury & Other. Results are determined based on the Companys internal financial management reporting process and organizational structure. Selected financial information for the business segments is included in Tables 12a and 12b.
Asset Quality
Overall credit quality reflected the slowly improving Hawaii economy during the third quarter of 2010. Non-performing assets were $45.2 million at September 30, 2010, up from $43.2 million at June 30, 2010, and down from $48.5 million at September 30, 2009. As a percentage of total loans and leases, including loans held for sale and foreclosed real estate, non-performing assets were 0.85 percent at September 30, 2010. Non-performing assets remain at elevated levels primarily due to the lengthy resolution process on residential mortgages. Non-accrual loans and leases declined to $39.3 million at September 30, 2010, representing 0.74 percent of total loans and leases. Accruing loans and leases past due 90 days or more decreased to $10.5 million during the third quarter. More information on non-performing assets and accruing loans and leases past due 90 days is presented in Table 10.
Net charge-offs during the third quarter of 2010 were $13.4 million or 0.99 percent annualized of total average loans and leases, down from $14.9 million in the second quarter of 2010, and down from $22.3 million in the third quarter last year. Net charge-offs for the nine months ended September 30, 2010 were $46.3 million, or 1.12 percent annualized of total average loans and leases, down from $61.9 million, or 1.33 percent annualized of total average loans and leases for the same period last year.
The allowance for loan and lease losses was $147.4 million at September 30, 2010, unchanged from June 30, 2010, and up from $142.7 million at September 30, 2009. The ratio of the allowance for loan and lease losses to total loans and leases increased to 2.77 percent at September 30, 2010. The reserve for unfunded commitments at September 30, 2010 was unchanged at $5.4 million. Details of charge-offs, recoveries and the components of the total reserve for credit losses are summarized in Table 11.
Other Financial Highlights
Total assets were $12.72 billion at September 30, 2010, down slightly from total assets of $12.86 billion at June 30, 2010, and up from $12.21 billion at September 30, 2009. Average total assets were $12.80 billion during the third quarter of 2010, up from average assets of $12.60 billion during the previous quarter, and up from $11.99 billion during the third quarter last year.
Total loans and leases were $5.31 billion at September 30, 2010, down from $5.44 billion at June 30, 2010, and down from $5.93 billion at September 30, 2009 primarily due to lower demand. Loan and lease portfolio balances, including the higher risk loans outstanding, are summarized in Table 9.
Deposit generation remained strong during the third quarter of 2010. Total deposits were $9.60 billion at September 30, 2010, up from $9.32 billion at June 30, 2010, and up from $9.25 billion at September 30, 2009. The increase in deposits was widespread among deposit categories. Average total deposits were $9.58 billion in the third quarter of 2010, up from average deposits of $9.39 billion during the previous quarter, and up from $9.13 billion during the third quarter last year. Deposit balances are summarized in Tables 6a, 6b, and 9.
As a result of strong deposits and weak loan demand, the investment securities portfolio increased to $6.36 billion at September 30, 2010, up from $6.13 billion at June 30, 2010, and up from $5.02 billion at September 30, 2009.
During the third quarter of 2010, the Company repurchased 208.5 thousand shares of common stock at a total cost of $9.8 million under its share repurchase program. The average cost was $46.93 per share repurchased. From October 1, 2010 through October 22, 2010, the Company repurchased an additional 65.5 thousand shares of common stock at an average cost of $45.68 per share. From the beginning of the share repurchase program initiated during July 2001 through September 30, 2010, the Company has repurchased 45.8 million shares and returned over $1.6 billion to shareholders at an average cost of $35.47 per share. Remaining buyback authority under the share repurchase program was $75.6 million at September 30, 2010.
Total shareholders equity increased to $1.04 billion at September 30, 2010, compared to $1.01 billion at June 30, 2010, and $902.8 million at September 30, 2009. The ratio of tangible common equity to risk-weighted assets was 19.50 percent at September 30, 2010, up from 18.57 percent at June 30, 2010, and up from 14.56 percent at September 30, 2009. At September 30, 2010, the Tier 1 leverage ratio increased to 7.15 percent, up from to 7.09 percent at June 30, 2010, and 6.65 percent at September 30, 2009.
The Companys Board of Directors declared a quarterly cash dividend of $0.45 per share on the Companys outstanding shares. The dividend will be payable on December 14, 2010 to shareholders of record at the close of business on November 30, 2010.
Hawaii Economy
Hawaiis economy continued to recover during the third quarter of 2010 due to a stronger visitor industry. During April through July, total visitor arrivals increased 8.4 percent compared with the same period last year and were widespread among counties. Hotel occupancy improved to 74 percent and visitor spending is trending upward. Overall, state job growth in July 2010 was 1.0 percent as visitor industry gains offset declines in other sectors. Construction continues to be the industry most impacted with 9.3 percent fewer jobs in July compared with the previous year. The September statewide unemployment rate declined slightly to 6.3 percent on a seasonally adjusted basis. Home prices and sales remained fairly strong during the quarter. More information on Hawaii economic trends is presented in Table 14.
Conference Call Information
The Company will review its third quarter 2010 financial results today at 8:00 a.m. Hawaii Time. The conference call will be accessible via teleconference and the Investor Relations link of Bank of Hawaii Corporations web site, www.boh.com. Conference call participants in the United States should dial 866-543-6405. International participants should dial 617-213-8897. Use the pass code Bank of Hawaii to access the call. A replay will be available for one week beginning Monday, October 25, 2010 by dialing 888-286-8010 in the United States or 617-801-6888 internationally and entering the pass code number 44496791 when prompted. A replay will also be available via the Investor Relations link of the Companys web site, 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 Corporations Annual Report on Form 10-K for the year ended December 31, 2009, 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, American Samoa, and the West Pacific. The Companys principal subsidiary, Bank of Hawaii, was founded in 1897 and is the largest independent financial institution in Hawaii. For more information about Bank of Hawaii Corporation, see the Companys web site, www.boh.com.
# # # #
Bank of Hawaii Corporation and Subsidiaries |
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Financial Highlights |
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Table 1 |
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Three Months Ended |
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Nine Months Ended |
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|||||||||||
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September 30, |
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June 30, |
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September 30, |
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September 30, |
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|||||||
(dollars in thousands, except per share amounts) |
|
2010 |
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2010 |
|
2009 |
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2010 |
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2009 |
|
|||||
For the Period: |
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Operating Results |
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|
|
|
|
|
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|
|
|
|
|||||
Net Interest Income |
|
$ |
98,626 |
|
$ |
103,928 |
|
$ |
108,887 |
|
$ |
310,207 |
|
$ |
308,800 |
|
Provision for Credit Losses |
|
13,359 |
|
15,939 |
|
27,500 |
|
50,009 |
|
81,077 |
|
|||||
Total Noninterest Income |
|
63,125 |
|
68,874 |
|
56,800 |
|
203,781 |
|
186,997 |
|
|||||
Total Noninterest Expense |
|
89,890 |
|
85,918 |
|
83,987 |
|
257,514 |
|
261,504 |
|
|||||
Net Income |
|
44,064 |
|
46,564 |
|
36,471 |
|
143,364 |
|
103,517 |
|
|||||
Basic Earnings Per Share |
|
0.91 |
|
0.97 |
|
0.76 |
|
2.98 |
|
2.17 |
|
|||||
Diluted Earnings Per Share |
|
0.91 |
|
0.96 |
|
0.76 |
|
2.96 |
|
2.16 |
|
|||||
Dividends Declared Per Share |
|
0.45 |
|
0.45 |
|
0.45 |
|
1.35 |
|
1.35 |
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|||||
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Performance Ratios |
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|
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|
|
|||||
Return on Average Assets |
|
1.37 |
% |
1.48 |
% |
1.21 |
% |
1.52 |
% |
1.19 |
% |
|||||
Return on Average Shareholders Equity |
|
16.64 |
|
19.01 |
|
16.44 |
|
19.28 |
|
16.24 |
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|||||
Efficiency Ratio 1 |
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55.57 |
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49.72 |
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50.69 |
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50.10 |
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52.74 |
|
|||||
Operating Leverage 2 |
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(17.29 |
) |
(11.10 |
) |
11.77 |
|
9.47 |
|
(7.21 |
) |
|||||
Net Interest Margin 3 |
|
3.27 |
|
3.51 |
|
3.85 |
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3.50 |
|
3.78 |
|
|||||
Dividend Payout Ratio 4 |
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49.45 |
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46.39 |
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59.21 |
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45.30 |
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62.21 |
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|||||
Average Shareholders Equity to Average Assets |
|
8.21 |
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7.79 |
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7.34 |
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7.90 |
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7.34 |
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Average Balances |
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Average Loans and Leases |
|
$ |
5,368,177 |
|
$ |
5,522,423 |
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$ |
6,034,956 |
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$ |
5,524,672 |
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$ |
6,245,117 |
|
Average Assets |
|
12,797,219 |
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12,603,233 |
|
11,988,995 |
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12,594,282 |
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11,616,237 |
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|||||
Average Deposits |
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9,576,936 |
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9,387,621 |
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9,131,064 |
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9,452,406 |
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9,036,247 |
|
|||||
Average Shareholders Equity |
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1,050,535 |
|
982,233 |
|
880,003 |
|
994,319 |
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852,347 |
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|||||
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Market Price Per Share of Common Stock |
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Closing |
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$ |
44.92 |
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$ |
48.35 |
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$ |
41.54 |
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$ |
44.92 |
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$ |
41.54 |
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High |
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51.60 |
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54.10 |
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42.92 |
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54.10 |
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45.24 |
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|||||
Low |
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43.77 |
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45.00 |
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33.65 |
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41.60 |
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25.33 |
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September 30, |
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June 30, |
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December 31, |
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September 30, |
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||||
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2010 |
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2010 |
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2009 |
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2009 |
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As of Period End: |
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Balance Sheet Totals |
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Loans and Leases |
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$ |
5,312,054 |
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$ |
5,440,911 |
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$ |
5,759,785 |
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$ |
5,931,358 |
|
Total Assets |
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12,716,603 |
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12,855,845 |
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12,414,827 |
|
12,208,025 |
|
||||
Total Deposits |
|
9,602,462 |
|
9,324,659 |
|
9,409,676 |
|
9,250,100 |
|
||||
Long-Term Debt |
|
40,292 |
|
40,300 |
|
90,317 |
|
91,424 |
|
||||
Total Shareholders Equity |
|
1,039,561 |
|
1,013,011 |
|
895,973 |
|
902,799 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Asset Quality |
|
|
|
|
|
|
|
|
|
||||
Allowance for Loan and Lease Losses |
|
$ |
147,358 |
|
$ |
147,358 |
|
$ |
143,658 |
|
$ |
142,658 |
|
Non-Performing Assets 5 |
|
45,174 |
|
43,241 |
|
48,331 |
|
48,536 |
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||||
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|
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|
|
|
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|
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Financial Ratios |
|
|
|
|
|
|
|
|
|
||||
Allowance to Loans and Leases Outstanding |
|
2.77 |
% |
2.71 |
% |
2.49 |
% |
2.41 |
% |
||||
Tier 1 Capital Ratio 6 |
|
17.71 |
|
16.92 |
|
14.84 |
|
13.39 |
|
||||
Total Capital Ratio 7 |
|
18.98 |
|
18.19 |
|
16.11 |
|
14.66 |
|
||||
Leverage Ratio 8 |
|
7.15 |
|
7.09 |
|
6.76 |
|
6.65 |
|
||||
Tangible Common Equity to Total Assets 9 |
|
7.93 |
|
7.63 |
|
6.96 |
|
7.11 |
|
||||
Tangible Common Equity to Risk-Weighted Assets 9 |
|
19.50 |
|
18.57 |
|
15.45 |
|
14.56 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Non-Financial Data |
|
|
|
|
|
|
|
|
|
||||
Full-Time Equivalent Employees |
|
2,428 |
|
2,427 |
|
2,418 |
|
2,474 |
|
||||
Branches and Offices |
|
83 |
|
83 |
|
83 |
|
85 |
|
||||
ATMs |
|
492 |
|
487 |
|
485 |
|
485 |
|
1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
2 Operating leverage is defined as the percentage change in income before the provision for credit losses and the provision for income taxes. Measures are presented on a linked quarter basis.
3 Net interest margin is defined as net interest income, on a taxable equivalent basis, as a percentage of average earning assets.
4 Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.
5 Excluded from non-performing assets are contractually binding non-accrual loans held for sale of $4.2 million and $7.7 million as of December 31, 2009 and September 30, 2009, respectively.
6 Tier 1 Capital Ratio as of December 31, 2009 and September 30, 2009 was revised from 14.88% and 13.43%, respectively.
7 Total Capital Ratio as of December 31, 2009 and September 30, 2009 was revised from 16.15% and 14.70%, respectively.
8 Leverage Ratio as of December 31, 2009 and September 30, 2009 was revised from 6.78% and 6.67%, respectively.
9 Tangible common equity, a non-GAAP financial measure, is defined by the Company as shareholders equity minus goodwill and intangible assets. Intangible assets are included as a component of other assets in the Consolidated Statements of Condition.
Bank of Hawaii Corporation and Subsidiaries |
|
|
Net Significant Income (Expense) Items |
|
Table 2 |
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Three Months Ended |
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Nine Months Ended |
|
|||||||||||
|
|
September 30, |
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June 30, |
|
September 30, |
|
September 30, |
|
|||||||
(dollars in thousands) |
|
2010 |
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|||||
Cash Basis Interest Recoveries |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
2,832 |
|
$ |
|
|
Leveraged Lease Residual Value Impairment |
|
|
|
|
|
(968 |
) |
|
|
(968 |
) |
|||||
Investment Securities Gains, Net |
|
7,877 |
|
14,951 |
|
|
|
42,849 |
|
|
|
|||||
Gain on Mutual Fund Sale |
|
2,852 |
|
|
|
|
|
2,852 |
|
|
|
|||||
Gains (Losses) on Disposal of Leased Equipment |
|
(1,449 |
) |
1,189 |
|
|
|
(260 |
) |
12,818 |
|
|||||
Gain on Sale of Insurance Subsidiary |
|
904 |
|
|
|
|
|
904 |
|
852 |
|
|||||
Increase in Allowance for Loan and Lease Losses |
|
|
|
(1,000 |
) |
(5,242 |
) |
(3,700 |
) |
(19,160 |
) |
|||||
Cash Grants for the Purchase of Company Stock |
|
|
|
(3,250 |
) |
|
|
(3,250 |
) |
|
|
|||||
FDIC Special Assessment |
|
|
|
|
|
|
|
|
|
(5,744 |
) |
|||||
REPO Early Termination Expense |
|
(5,189 |
) |
|
|
|
|
(5,189 |
) |
|
|
|||||
Legal Contingencies |
|
|
|
|
|
(800 |
) |
|
|
(2,300 |
) |
|||||
Market Premium on Repurchased Long-Term Privately Placed Debt |
|
|
|
|
|
|
|
|
|
(875 |
) |
|||||
Significant Income (Expense) Items Before the Provision (Benefit) for Income Taxes |
|
4,995 |
|
11,890 |
|
(7,010 |
) |
37,038 |
|
(15,377 |
) |
|||||
Income Tax Impact Related to Lease Transactions |
|
(4,003 |
) |
462 |
|
(373 |
) |
(3,541 |
) |
3,213 |
|
|||||
Income Tax Impact |
|
2,256 |
|
3,745 |
|
(2,115 |
) |
13,055 |
|
(9,529 |
) |
|||||
Net Significant Income (Expense) Items |
|
$ |
6,742 |
|
$ |
7,683 |
|
$ |
(4,522 |
) |
$ |
27,524 |
|
$ |
(9,061 |
) |
Bank of Hawaii Corporation and Subsidiaries |
|
|
Consolidated Statements of Income |
|
Table 3 |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|||||||||||
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
|||||||
(dollars in thousands, except per share amounts) |
|
2010 |
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|||||
Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest and Fees on Loans and Leases |
|
$ |
70,198 |
|
$ |
71,997 |
|
$ |
79,530 |
|
$ |
219,466 |
|
$ |
249,464 |
|
Income on Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
|||||
Trading |
|
|
|
|
|
|
|
|
|
594 |
|
|||||
Available-for-Sale |
|
40,775 |
|
44,989 |
|
46,419 |
|
129,605 |
|
116,875 |
|
|||||
Held-to-Maturity |
|
1,553 |
|
1,700 |
|
2,179 |
|
5,116 |
|
7,115 |
|
|||||
Deposits |
|
5 |
|
3 |
|
3 |
|
21 |
|
18 |
|
|||||
Funds Sold |
|
211 |
|
396 |
|
320 |
|
916 |
|
1,423 |
|
|||||
Other |
|
278 |
|
277 |
|
277 |
|
832 |
|
829 |
|
|||||
Total Interest Income |
|
113,020 |
|
119,362 |
|
128,728 |
|
355,956 |
|
376,318 |
|
|||||
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits |
|
7,041 |
|
7,930 |
|
12,235 |
|
23,278 |
|
43,741 |
|
|||||
Securities Sold Under Agreements to Repurchase |
|
6,670 |
|
6,472 |
|
6,394 |
|
19,571 |
|
19,523 |
|
|||||
Funds Purchased |
|
10 |
|
6 |
|
5 |
|
23 |
|
15 |
|
|||||
Long-Term Debt |
|
673 |
|
1,026 |
|
1,207 |
|
2,877 |
|
4,239 |
|
|||||
Total Interest Expense |
|
14,394 |
|
15,434 |
|
19,841 |
|
45,749 |
|
67,518 |
|
|||||
Net Interest Income |
|
98,626 |
|
103,928 |
|
108,887 |
|
310,207 |
|
308,800 |
|
|||||
Provision for Credit Losses |
|
13,359 |
|
15,939 |
|
27,500 |
|
50,009 |
|
81,077 |
|
|||||
Net Interest Income After Provision for Credit Losses |
|
85,267 |
|
87,989 |
|
81,387 |
|
260,198 |
|
227,723 |
|
|||||
Noninterest Income |
|
|
|
|
|
|
|
|
|
|
|
|||||
Trust and Asset Management |
|
10,534 |
|
11,457 |
|
10,915 |
|
33,699 |
|
34,428 |
|
|||||
Mortgage Banking |
|
6,811 |
|
3,752 |
|
4,656 |
|
14,027 |
|
18,777 |
|
|||||
Service Charges on Deposit Accounts |
|
12,737 |
|
14,856 |
|
14,014 |
|
41,407 |
|
40,310 |
|
|||||
Fees, Exchange, and Other Service Charges |
|
15,500 |
|
15,806 |
|
14,801 |
|
45,810 |
|
45,187 |
|
|||||
Investment Securities Gains (Losses), Net |
|
7,877 |
|
14,951 |
|
(5 |
) |
42,849 |
|
63 |
|
|||||
Insurance |
|
2,646 |
|
2,291 |
|
7,304 |
|
7,652 |
|
17,689 |
|
|||||
Other |
|
7,020 |
|
5,761 |
|
5,115 |
|
18,337 |
|
30,543 |
|
|||||
Total Noninterest Income |
|
63,125 |
|
68,874 |
|
56,800 |
|
203,781 |
|
186,997 |
|
|||||
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|||||
Salaries and Benefits |
|
46,840 |
|
47,500 |
|
46,387 |
|
138,904 |
|
137,595 |
|
|||||
Net Occupancy |
|
10,186 |
|
10,154 |
|
10,350 |
|
30,484 |
|
30,686 |
|
|||||
Net Equipment |
|
4,545 |
|
4,366 |
|
4,502 |
|
13,469 |
|
13,320 |
|
|||||
Professional Fees |
|
905 |
|
2,091 |
|
2,642 |
|
4,988 |
|
9,196 |
|
|||||
FDIC Insurance |
|
3,159 |
|
3,107 |
|
3,290 |
|
9,366 |
|
14,091 |
|
|||||
Other |
|
24,255 |
|
18,700 |
|
16,816 |
|
60,303 |
|
56,616 |
|
|||||
Total Noninterest Expense |
|
89,890 |
|
85,918 |
|
83,987 |
|
257,514 |
|
261,504 |
|
|||||
Income Before Provision for Income Taxes |
|
58,502 |
|
70,945 |
|
54,200 |
|
206,465 |
|
153,216 |
|
|||||
Provision for Income Taxes |
|
14,438 |
|
24,381 |
|
17,729 |
|
63,101 |
|
49,699 |
|
|||||
Net Income |
|
$ |
44,064 |
|
$ |
46,564 |
|
$ |
36,471 |
|
$ |
143,364 |
|
$ |
103,517 |
|
Basic Earnings Per Share |
|
$ |
0.91 |
|
$ |
0.97 |
|
$ |
0.76 |
|
$ |
2.98 |
|
$ |
2.17 |
|
Diluted Earnings Per Share |
|
$ |
0.91 |
|
$ |
0.96 |
|
$ |
0.76 |
|
$ |
2.96 |
|
$ |
2.16 |
|
Dividends Declared Per Share |
|
$ |
0.45 |
|
$ |
0.45 |
|
$ |
0.45 |
|
$ |
1.35 |
|
$ |
1.35 |
|
Basic Weighted Average Shares |
|
48,189,358 |
|
48,080,485 |
|
47,745,375 |
|
48,062,385 |
|
47,665,146 |
|
|||||
Diluted Weighted Average Shares |
|
48,462,154 |
|
48,415,602 |
|
48,045,873 |
|
48,386,647 |
|
47,930,271 |
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
Consolidated Statements of Condition |
|
Table 4 |
|
|
September 30, |
|
June 30, |
|
December 31, |
|
September 30, |
|
||||
(dollars in thousands) |
|
2010 |
|
2010 |
|
2009 |
|
2009 |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
||||
Interest-Bearing Deposits |
|
$ |
2,641 |
|
$ |
4,062 |
|
$ |
8,755 |
|
$ |
5,863 |
|
Funds Sold |
|
174,288 |
|
355,891 |
|
291,546 |
|
401,200 |
|
||||
Investment Securities |
|
|
|
|
|
|
|
|
|
||||
Available-for-Sale |
|
6,213,949 |
|
5,980,759 |
|
5,330,834 |
|
4,827,588 |
|
||||
Held-to-Maturity (Fair Value of $148,631; $161,441; $186,668; and $201,118) |
|
141,192 |
|
153,190 |
|
181,018 |
|
194,444 |
|
||||
Loans Held for Sale |
|
18,765 |
|
13,179 |
|
16,544 |
|
19,346 |
|
||||
Loans and Leases |
|
5,312,054 |
|
5,440,911 |
|
5,759,785 |
|
5,931,358 |
|
||||
Allowance for Loan and Lease Losses |
|
(147,358 |
) |
(147,358 |
) |
(143,658 |
) |
(142,658 |
) |
||||
Net Loans and Leases |
|
5,164,696 |
|
5,293,553 |
|
5,616,127 |
|
5,788,700 |
|
||||
Total Earning Assets |
|
11,715,531 |
|
11,800,634 |
|
11,444,824 |
|
11,237,141 |
|
||||
Cash and Noninterest-Bearing Deposits |
|
267,597 |
|
343,514 |
|
254,766 |
|
291,480 |
|
||||
Premises and Equipment |
|
108,855 |
|
108,394 |
|
110,976 |
|
110,173 |
|
||||
Customers Acceptances |
|
1,087 |
|
412 |
|
1,386 |
|
950 |
|
||||
Accrued Interest Receivable |
|
40,606 |
|
41,420 |
|
45,334 |
|
43,047 |
|
||||
Foreclosed Real Estate |
|
5,910 |
|
3,192 |
|
3,132 |
|
201 |
|
||||
Mortgage Servicing Rights |
|
24,316 |
|
25,646 |
|
25,970 |
|
25,437 |
|
||||
Goodwill |
|
31,517 |
|
31,517 |
|
31,517 |
|
34,959 |
|
||||
Other Assets |
|
521,184 |
|
501,116 |
|
496,922 |
|
464,637 |
|
||||
Total Assets |
|
$ |
12,716,603 |
|
$ |
12,855,845 |
|
$ |
12,414,827 |
|
$ |
12,208,025 |
|
|
|
|
|
|
|
|
|
|
|
||||
Liabilities |
|
|
|
|
|
|
|
|
|
||||
Deposits |
|
|
|
|
|
|
|
|
|
||||
Noninterest-Bearing Demand |
|
$ |
2,290,033 |
|
$ |
2,214,803 |
|
$ |
2,252,083 |
|
$ |
2,055,872 |
|
Interest-Bearing Demand |
|
1,814,934 |
|
1,615,464 |
|
1,609,413 |
|
1,588,705 |
|
||||
Savings |
|
4,423,095 |
|
4,423,473 |
|
4,405,969 |
|
4,365,257 |
|
||||
Time |
|
1,074,400 |
|
1,070,919 |
|
1,142,211 |
|
1,240,266 |
|
||||
Total Deposits |
|
9,602,462 |
|
9,324,659 |
|
9,409,676 |
|
9,250,100 |
|
||||
Funds Purchased |
|
9,832 |
|
9,832 |
|
8,888 |
|
8,670 |
|
||||
Short-Term Borrowings |
|
7,100 |
|
7,000 |
|
6,900 |
|
7,200 |
|
||||
Securities Sold Under Agreements to Repurchase |
|
1,616,243 |
|
2,081,393 |
|
1,618,717 |
|
1,524,755 |
|
||||
Long-Term Debt |
|
40,292 |
|
40,300 |
|
90,317 |
|
91,424 |
|
||||
Bankers Acceptances |
|
1,087 |
|
412 |
|
1,386 |
|
950 |
|
||||
Retirement Benefits Payable |
|
35,461 |
|
35,669 |
|
37,435 |
|
43,918 |
|
||||
Accrued Interest Payable |
|
6,492 |
|
5,078 |
|
7,026 |
|
9,740 |
|
||||
Taxes Payable and Deferred Taxes |
|
219,525 |
|
228,660 |
|
229,140 |
|
254,375 |
|
||||
Other Liabilities |
|
138,548 |
|
109,831 |
|
109,369 |
|
114,094 |
|
||||
Total Liabilities |
|
11,677,042 |
|
11,842,834 |
|
11,518,854 |
|
11,305,226 |
|
||||
Shareholders Equity |
|
|
|
|
|
|
|
|
|
||||
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: September 30, 2010 - 57,115,287 / 48,265,014; June 30, 2010 - 57,100,287 / 48,264,157; December 31, 2009 - 57,028,239 / 48,018,943; and September 30, 2009 - 57,028,554 / 47,937,543) |
|
570 |
|
570 |
|
569 |
|
569 |
|
||||
Capital Surplus |
|
499,437 |
|
497,082 |
|
494,318 |
|
492,346 |
|
||||
Accumulated Other Comprehensive Income |
|
66,953 |
|
61,220 |
|
6,925 |
|
37,307 |
|
||||
Retained Earnings |
|
914,901 |
|
895,565 |
|
843,521 |
|
825,709 |
|
||||
Treasury Stock, at Cost (Shares: September 30, 2010 - 8,850,273; June 30, 2010 - 8,836,130; December 31, 2009 - 9,009,296; and September 30, 2009 - 9,091,011) |
|
(442,300 |
) |
(441,426 |
) |
(449,360 |
) |
(453,132 |
) |
||||
Total Shareholders Equity |
|
1,039,561 |
|
1,013,011 |
|
895,973 |
|
902,799 |
|
||||
Total Liabilities and Shareholders Equity |
|
$ |
12,716,603 |
|
$ |
12,855,845 |
|
$ |
12,414,827 |
|
$ |
12,208,025 |
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
Consolidated Statements of Shareholders Equity |
|
Table 5 |
|
|
|
|
|
|
|
|
Accum. |
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
Comprehensive |
|
|
|
|
|
|
|
|||||||
|
|
|
|
Common |
|
Capital |
|
Income |
|
Retained |
|
Treasury |
|
Comprehensive |
|
|||||||
(dollars in thousands) |
|
Total |
|
Stock |
|
Surplus |
|
(Loss) |
|
Earnings |
|
Stock |
|
Income |
|
|||||||
Balance as of December 31, 2009 |
|
$ |
895,973 |
|
$ |
569 |
|
$ |
494,318 |
|
$ |
6,925 |
|
$ |
843,521 |
|
$ |
(449,360 |
) |
|
|
|
Comprehensive Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net Income |
|
143,364 |
|
|
|
|
|
|
|
143,364 |
|
|
|
$ |
143,364 |
|
||||||
Other Comprehensive Income, Net of Tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale |
|
58,886 |
|
|
|
|
|
58,886 |
|
|
|
|
|
58,886 |
|
|||||||
Amortization of Net Losses Related to Defined Benefit Plans |
|
1,142 |
|
|
|
|
|
1,142 |
|
|
|
|
|
1,142 |
|
|||||||
Total Comprehensive Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
203,392 |
|
||||||
Share-Based Compensation |
|
2,703 |
|
|
|
2,703 |
|
|
|
|
|
|
|
|
|
|||||||
Common Stock Issued under Purchase and Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Compensation Plans and Related Tax Benefits (522,542 shares) |
|
15,716 |
|
1 |
|
2,416 |
|
|
|
(6,850 |
) |
20,149 |
|
|
|
|||||||
Common Stock Repurchased (276,471 shares) |
|
(13,089 |
) |
|
|
|
|
|
|
|
|
(13,089 |
) |
|
|
|||||||
Cash Dividends Paid |
|
(65,134 |
) |
|
|
|
|
|
|
(65,134 |
) |
|
|
|
|
|||||||
Balance as of September 30, 2010 |
|
$ |
1,039,561 |
|
$ |
570 |
|
$ |
499,437 |
|
$ |
66,953 |
|
$ |
914,901 |
|
$ |
(442,300 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance as of December 31, 2008 |
|
$ |
790,704 |
|
$ |
568 |
|
$ |
492,515 |
|
$ |
(28,888 |
) |
$ |
787,924 |
|
$ |
(461,415 |
) |
|
|
|
Comprehensive Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net Income |
|
103,517 |
|
|
|
|
|
|
|
103,517 |
|
|
|
$ |
103,517 |
|
||||||
Other Comprehensive Income, Net of Tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale |
|
65,121 |
|
|
|
|
|
65,121 |
|
|
|
|
|
65,121 |
|
|||||||
Amortization of Net Losses Related to Defined Benefit Plans |
|
1,074 |
|
|
|
|
|
1,074 |
|
|
|
|
|
1,074 |
|
|||||||
Total Comprehensive Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
169,712 |
|
||||||
Share-Based Compensation |
|
1,700 |
|
|
|
1,700 |
|
|
|
|
|
|
|
|
|
|||||||
Common Stock Issued under Purchase and Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Compensation Plans and Related Tax Benefits (209,847 shares) |
|
6,202 |
|
1 |
|
(1,869 |
) |
|
|
(1,101 |
) |
9,171 |
|
|
|
|||||||
Common Stock Repurchased (25,675 shares) |
|
(888 |
) |
|
|
|
|
|
|
|
|
(888 |
) |
|
|
|||||||
Cash Dividends Paid |
|
(64,631 |
) |
|
|
|
|
|
|
(64,631 |
) |
|
|
|
|
|||||||
Balance as of September 30, 2009 |
|
$ |
902,799 |
|
$ |
569 |
|
$ |
492,346 |
|
$ |
37,307 |
|
$ |
825,709 |
|
$ |
(453,132 |
) |
|
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
Average Balances and Interest Rates - Taxable Equivalent Basis |
|
Table 6a |
|
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
||||||||||||||||||
|
|
September 30, 2010 |
|
June 30, 2010 |
|
September 30, 2009 |
|
||||||||||||||||||
|
|
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 |
|
$ |
4.4 |
|
$ |
|
|
0.49 |
% |
$ |
5.3 |
|
$ |
|
|
0.17 |
% |
$ |
5.1 |
|
$ |
|
|
0.28 |
% |
Funds Sold |
|
303.4 |
|
0.2 |
|
0.27 |
|
586.8 |
|
0.4 |
|
0.27 |
|
489.7 |
|
0.3 |
|
0.26 |
|
||||||
Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Available-for-Sale |
|
6,158.5 |
|
41.0 |
|
2.66 |
|
5,531.2 |
|
45.2 |
|
3.27 |
|
4,491.2 |
|
46.7 |
|
4.16 |
|
||||||
Held-to-Maturity |
|
148.2 |
|
1.6 |
|
4.19 |
|
160.2 |
|
1.7 |
|
4.25 |
|
202.0 |
|
2.2 |
|
4.31 |
|
||||||
Loans Held for Sale |
|
12.7 |
|
0.1 |
|
4.59 |
|
8.5 |
|
0.1 |
|
4.46 |
|
25.2 |
|
0.2 |
|
2.95 |
|
||||||
Loans and Leases 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and Industrial |
|
750.6 |
|
7.8 |
|
4.13 |
|
765.5 |
|
7.9 |
|
4.12 |
|
884.4 |
|
9.0 |
|
4.06 |
|
||||||
Commercial Mortgage |
|
808.8 |
|
10.4 |
|
5.10 |
|
826.2 |
|
10.5 |
|
5.10 |
|
787.0 |
|
10.2 |
|
5.14 |
|
||||||
Construction |
|
87.6 |
|
1.1 |
|
4.95 |
|
100.3 |
|
1.3 |
|
5.28 |
|
140.9 |
|
1.4 |
|
3.81 |
|
||||||
Commercial Lease Financing |
|
380.1 |
|
2.6 |
|
2.79 |
|
400.8 |
|
3.0 |
|
2.95 |
|
464.0 |
|
3.0 |
|
2.56 |
|
||||||
Residential Mortgage |
|
2,076.0 |
|
29.5 |
|
5.68 |
|
2,109.1 |
|
29.9 |
|
5.66 |
|
2,273.8 |
|
33.0 |
|
5.81 |
|
||||||
Home Equity |
|
849.4 |
|
10.7 |
|
4.99 |
|
875.8 |
|
10.9 |
|
5.01 |
|
963.3 |
|
12.3 |
|
5.08 |
|
||||||
Automobile |
|
229.1 |
|
4.4 |
|
7.54 |
|
249.4 |
|
4.7 |
|
7.63 |
|
304.5 |
|
6.1 |
|
7.88 |
|
||||||
Other 2 |
|
186.6 |
|
3.5 |
|
7.55 |
|
195.3 |
|
3.7 |
|
7.63 |
|
217.1 |
|
4.3 |
|
7.95 |
|
||||||
Total Loans and Leases |
|
5,368.2 |
|
70.0 |
|
5.20 |
|
5,522.4 |
|
71.9 |
|
5.22 |
|
6,035.0 |
|
79.3 |
|
5.24 |
|
||||||
Other |
|
79.8 |
|
0.3 |
|
1.39 |
|
79.8 |
|
0.3 |
|
1.39 |
|
79.7 |
|
0.3 |
|
1.39 |
|
||||||
Total Earning Assets 3 |
|
12,075.2 |
|
113.2 |
|
3.74 |
|
11,894.2 |
|
119.6 |
|
4.03 |
|
11,327.9 |
|
129.0 |
|
4.54 |
|
||||||
Cash and Noninterest-Bearing Deposits |
|
227.3 |
|
|
|
|
|
221.0 |
|
|
|
|
|
203.5 |
|
|
|
|
|
||||||
Other Assets |
|
494.7 |
|
|
|
|
|
488.0 |
|
|
|
|
|
457.6 |
|
|
|
|
|
||||||
Total Assets |
|
$ |
12,797.2 |
|
|
|
|
|
$ |
12,603.2 |
|
|
|
|
|
$ |
11,989.0 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-Bearing Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Demand |
|
$ |
1,770.1 |
|
0.2 |
|
0.06 |
|
$ |
1,659.8 |
|
0.3 |
|
0.06 |
|
$ |
1,625.6 |
|
0.2 |
|
0.06 |
|
|||
Savings |
|
4,460.9 |
|
3.5 |
|
0.31 |
|
4,477.8 |
|
4.2 |
|
0.38 |
|
4,190.2 |
|
6.6 |
|
0.63 |
|
||||||
Time |
|
1,075.7 |
|
3.3 |
|
1.22 |
|
1,093.0 |
|
3.4 |
|
1.24 |
|
1,264.7 |
|
5.4 |
|
1.69 |
|
||||||
Total Interest-Bearing Deposits |
|
7,306.7 |
|
7.0 |
|
0.38 |
|
7,230.6 |
|
7.9 |
|
0.44 |
|
7,080.5 |
|
12.2 |
|
0.69 |
|
||||||
Short-Term Borrowings |
|
26.6 |
|
|
|
0.15 |
|
17.7 |
|
|
|
0.13 |
|
18.1 |
|
|
|
0.12 |
|
||||||
Securities Sold Under Agreements to Repurchase |
|
1,706.2 |
|
6.7 |
|
1.53 |
|
1,785.2 |
|
6.5 |
|
1.44 |
|
1,464.3 |
|
6.4 |
|
1.71 |
|
||||||
Long-Term Debt |
|
40.3 |
|
0.7 |
|
6.68 |
|
74.4 |
|
1.0 |
|
5.52 |
|
91.4 |
|
1.2 |
|
5.26 |
|
||||||
Total Interest-Bearing Liabilities |
|
9,079.8 |
|
14.4 |
|
0.63 |
|
9,107.9 |
|
15.4 |
|
0.68 |
|
8,654.3 |
|
19.8 |
|
0.91 |
|
||||||
Net Interest Income |
|
|
|
$ |
98.8 |
|
|
|
|
|
$ |
104.2 |
|
|
|
|
|
$ |
109.2 |
|
|
|
|||
Interest Rate Spread |
|
|
|
|
|
3.11 |
% |
|
|
|
|
3.35 |
% |
|
|
|
|
3.63 |
% |
||||||
Net Interest Margin |
|
|
|
|
|
3.27 |
% |
|
|
|
|
3.51 |
% |
|
|
|
|
3.85 |
% |
||||||
Noninterest-Bearing Demand Deposits |
|
2,270.2 |
|
|
|
|
|
2,157.0 |
|
|
|
|
|
2,050.5 |
|
|
|
|
|
||||||
Other Liabilities |
|
396.7 |
|
|
|
|
|
356.1 |
|
|
|
|
|
404.2 |
|
|
|
|
|
||||||
Shareholders Equity |
|
1,050.5 |
|
|
|
|
|
982.2 |
|
|
|
|
|
880.0 |
|
|
|
|
|
||||||
Total Liabilities and Shareholders Equity |
|
$ |
12,797.2 |
|
|
|
|
|
$ |
12,603.2 |
|
|
|
|
|
$ |
11,989.0 |
|
|
|
|
|
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 35%, of $199,000, $237,000, and $329,000 for the three months ended September 30, 2010, June 30, 2010, and Septmeber 30, 2009, respectively. |
Bank of Hawaii Corporation and Subsidiaries |
|
Average Balances and Interest Rates - Taxable Equivalent Basis |
Table 6b |
|
|
Nine Months Ended |
|
Nine Months Ended |
|
||||||||||||
|
|
September 30, 2010 |
|
September 30, 2009 |
|
||||||||||||
|
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
||||
(dollars in millions) |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
|
||||
Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-Bearing Deposits |
|
$ |
5.2 |
|
$ |
|
|
0.54 |
% |
$ |
5.0 |
|
$ |
|
|
0.49 |
% |
Funds Sold |
|
450.5 |
|
0.9 |
|
0.27 |
|
743.7 |
|
1.4 |
|
0.25 |
|
||||
Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Trading |
|
|
|
|
|
|
|
16.1 |
|
0.6 |
|
4.92 |
|
||||
Available-for-Sale |
|
5,646.9 |
|
130.3 |
|
3.08 |
|
3,600.8 |
|
117.8 |
|
4.36 |
|
||||
Held-to-Maturity |
|
160.7 |
|
5.1 |
|
4.24 |
|
218.9 |
|
7.1 |
|
4.33 |
|
||||
Loans Held for Sale |
|
10.0 |
|
0.8 |
|
10.16 |
|
23.7 |
|
0.7 |
|
3.82 |
|
||||
Loans and Leases 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial and Industrial |
|
768.1 |
|
25.9 |
|
4.50 |
|
966.1 |
|
29.4 |
|
4.06 |
|
||||
Commercial Mortgage |
|
824.2 |
|
31.4 |
|
5.10 |
|
760.7 |
|
29.7 |
|
5.23 |
|
||||
Construction |
|
98.6 |
|
3.7 |
|
5.08 |
|
146.5 |
|
4.4 |
|
4.02 |
|
||||
Commercial Lease Financing |
|
396.0 |
|
9.0 |
|
3.03 |
|
459.0 |
|
10.1 |
|
2.95 |
|
||||
Residential Mortgage |
|
2,114.9 |
|
90.3 |
|
5.69 |
|
2,356.1 |
|
104.0 |
|
5.89 |
|
||||
Home Equity |
|
878.0 |
|
32.9 |
|
5.01 |
|
996.9 |
|
38.0 |
|
5.09 |
|
||||
Automobile |
|
250.2 |
|
14.3 |
|
7.64 |
|
328.6 |
|
19.5 |
|
7.93 |
|
||||
Other 2 |
|
194.7 |
|
11.2 |
|
7.65 |
|
231.3 |
|
13.7 |
|
7.90 |
|
||||
Total Loans and Leases |
|
5,524.7 |
|
218.7 |
|
5.29 |
|
6,245.2 |
|
248.8 |
|
5.32 |
|
||||
Other |
|
79.8 |
|
0.8 |
|
1.39 |
|
79.7 |
|
0.8 |
|
1.39 |
|
||||
Total Earning Assets 3 |
|
11,877.8 |
|
356.6 |
|
4.01 |
|
10,933.1 |
|
377.2 |
|
4.60 |
|
||||
Cash and Noninterest-Bearing Deposits |
|
226.1 |
|
|
|
|
|
216.8 |
|
|
|
|
|
||||
Other Assets |
|
490.4 |
|
|
|
|
|
466.3 |
|
|
|
|
|
||||
Total Assets |
|
$ |
12,594.3 |
|
|
|
|
|
$ |
11,616.2 |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-Bearing Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Demand |
|
$ |
1,697.7 |
|
0.8 |
|
0.06 |
|
$ |
1,806.4 |
|
0.9 |
|
0.06 |
|
||
Savings |
|
4,457.7 |
|
12.2 |
|
0.37 |
|
3,922.4 |
|
22.6 |
|
0.77 |
|
||||
Time |
|
1,101.5 |
|
10.3 |
|
1.25 |
|
1,364.5 |
|
20.3 |
|
1.98 |
|
||||
Total Interest-Bearing Deposits |
|
7,256.9 |
|
23.3 |
|
0.43 |
|
7,093.3 |
|
43.8 |
|
0.82 |
|
||||
Short-Term Borrowings |
|
24.3 |
|
|
|
0.12 |
|
17.7 |
|
|
|
0.11 |
|
||||
Securities Sold Under Agreements to Repurchase |
|
1,675.0 |
|
19.5 |
|
1.54 |
|
1,191.2 |
|
19.5 |
|
2.16 |
|
||||
Long-Term Debt |
|
68.2 |
|
2.9 |
|
5.63 |
|
103.4 |
|
4.2 |
|
5.47 |
|
||||
Total Interest-Bearing Liabilities |
|
9,024.4 |
|
45.7 |
|
0.67 |
|
8,405.6 |
|
67.5 |
|
1.07 |
|
||||
Net Interest Income |
|
|
|
$ |
310.9 |
|
|
|
|
|
$ |
309.7 |
|
|
|
||
Interest Rate Spread |
|
|
|
|
|
3.34 |
% |
|
|
|
|
3.53 |
% |
||||
Net Interest Margin |
|
|
|
|
|
3.50 |
% |
|
|
|
|
3.78 |
% |
||||
Noninterest-Bearing Demand Deposits |
|
2,195.5 |
|
|
|
|
|
1,943.0 |
|
|
|
|
|
||||
Other Liabilities |
|
380.1 |
|
|
|
|
|
415.3 |
|
|
|
|
|
||||
Shareholders Equity |
|
994.3 |
|
|
|
|
|
852.3 |
|
|
|
|
|
||||
Total Liabilities and Shareholders Equity |
|
$ |
12,594.3 |
|
|
|
|
|
$ |
11,616.2 |
|
|
|
|
|
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 35%, of $675,000 and $886,000 for the nine months ended September 30, 2010 and 2009, respectively.
Bank of Hawaii Corporation and Subsidiaries |
|
Analysis of Change in Net Interest Income - Taxable Equivalent Basis |
Table 7a |
|
|
Three Months Ended September 30, 2010 |
|
||||||||||
|
|
Compared to June 30, 2010 |
|
||||||||||
(dollars in millions) |
|
Volume 1 |
|
Rate 1 |
|
Time 1 |
|
Total |
|
||||
Change in Interest Income: |
|
|
|
|
|
|
|
|
|
||||
Funds Sold |
|
$ |
(0.2 |
) |
$ |
|
|
$ |
|
|
$ |
(0.2 |
) |
Investment Securities |
|
|
|
|
|
|
|
|
|
||||
Available-for-Sale |
|
4.8 |
|
(9.0 |
) |
|
|
(4.2 |
) |
||||
Held-to-Maturity |
|
(0.1 |
) |
|
|
|
|
(0.1 |
) |
||||
Loans and Leases |
|
|
|
|
|
|
|
|
|
||||
Commercial and Industrial |
|
(0.2 |
) |
|
|
0.1 |
|
(0.1 |
) |
||||
Commercial Mortgage |
|
(0.2 |
) |
|
|
0.1 |
|
(0.1 |
) |
||||
Construction |
|
(0.1 |
) |
(0.1 |
) |
|
|
(0.2 |
) |
||||
Commercial Lease Financing |
|
(0.2 |
) |
(0.2 |
) |
|
|
(0.4 |
) |
||||
Residential Mortgage |
|
(0.5 |
) |
0.1 |
|
|
|
(0.4 |
) |
||||
Home Equity |
|
(0.3 |
) |
|
|
0.1 |
|
(0.2 |
) |
||||
Automobile |
|
(0.4 |
) |
|
|
0.1 |
|
(0.3 |
) |
||||
Other 2 |
|
(0.2 |
) |
(0.1 |
) |
0.1 |
|
(0.2 |
) |
||||
Total Loans and Leases |
|
(2.1 |
) |
(0.3 |
) |
0.5 |
|
(1.9 |
) |
||||
Total Change in Interest Income |
|
2.4 |
|
(9.3 |
) |
0.5 |
|
(6.4 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||
Change in Interest Expense: |
|
|
|
|
|
|
|
|
|
||||
Interest-Bearing Deposits |
|
|
|
|
|
|
|
|
|
||||
Demand |
|
(0.1 |
) |
|
|
|
|
(0.1 |
) |
||||
Savings |
|
|
|
(0.8 |
) |
0.1 |
|
(0.7 |
) |
||||
Time |
|
|
|
(0.1 |
) |
|
|
(0.1 |
) |
||||
Total Interest-Bearing Deposits |
|
(0.1 |
) |
(0.9 |
) |
0.1 |
|
(0.9 |
) |
||||
Securities Sold Under Agreements to Repurchase |
|
(0.3 |
) |
0.4 |
|
0.1 |
|
0.2 |
|
||||
Long-Term Debt |
|
(0.5 |
) |
0.2 |
|
|
|
(0.3 |
) |
||||
Total Change in Interest Expense |
|
(0.9 |
) |
(0.3 |
) |
0.2 |
|
(1.0 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||
Change in Net Interest Income |
|
$ |
3.3 |
|
$ |
(9.0 |
) |
$ |
0.3 |
|
$ |
(5.4 |
) |
1 The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume, rate, and time for that category.
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 7b |
|
|
Three Months Ended September 30, 2010 |
|
|||||||
|
|
Compared to September 30, 2009 |
|
|||||||
(dollars in millions) |
|
Volume 1 |
|
Rate 1 |
|
Total |
|
|||
Change in Interest Income: |
|
|
|
|
|
|
|
|||
Funds Sold |
|
$ |
(0.1 |
) |
$ |
|
|
$ |
(0.1 |
) |
Investment Securities |
|
|
|
|
|
|
|
|||
Available-for-Sale |
|
14.2 |
|
(19.9 |
) |
(5.7 |
) |
|||
Held-to-Maturity |
|
(0.6 |
) |
|
|
(0.6 |
) |
|||
Loans Held for Sale |
|
(0.1 |
) |
|
|
(0.1 |
) |
|||
Loans and Leases |
|
|
|
|
|
|
|
|||
Commercial and Industrial |
|
(1.4 |
) |
0.2 |
|
(1.2 |
) |
|||
Commercial Mortgage |
|
0.3 |
|
(0.1 |
) |
0.2 |
|
|||
Construction |
|
(0.6 |
) |
0.3 |
|
(0.3 |
) |
|||
Commercial Lease Financing |
|
(0.7 |
) |
0.3 |
|
(0.4 |
) |
|||
Residential Mortgage |
|
(2.8 |
) |
(0.7 |
) |
(3.5 |
) |
|||
Home Equity |
|
(1.4 |
) |
(0.2 |
) |
(1.6 |
) |
|||
Automobile |
|
(1.4 |
) |
(0.3 |
) |
(1.7 |
) |
|||
Other 2 |
|
(0.6 |
) |
(0.2 |
) |
(0.8 |
) |
|||
Total Loans and Leases |
|
(8.6 |
) |
(0.7 |
) |
(9.3 |
) |
|||
Total Change in Interest Income |
|
4.8 |
|
(20.6 |
) |
(15.8 |
) |
|||
|
|
|
|
|
|
|
|
|||
Change in Interest Expense: |
|
|
|
|
|
|
|
|||
Interest-Bearing Deposits |
|
|
|
|
|
|
|
|||
Savings |
|
0.4 |
|
(3.5 |
) |
(3.1 |
) |
|||
Time |
|
(0.7 |
) |
(1.4 |
) |
(2.1 |
) |
|||
Total Interest-Bearing Deposits |
|
(0.3 |
) |
(4.9 |
) |
(5.2 |
) |
|||
Securities Sold Under Agreements to Repurchase |
|
1.0 |
|
(0.7 |
) |
0.3 |
|
|||
Long-Term Debt |
|
(0.8 |
) |
0.3 |
|
(0.5 |
) |
|||
Total Change in Interest Expense |
|
(0.1 |
) |
(5.3 |
) |
(5.4 |
) |
|||
|
|
|
|
|
|
|
|
|||
Change in Net Interest Income |
|
$ |
4.9 |
|
$ |
(15.3 |
) |
$ |
(10.4 |
) |
1 The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume and rate for that category.
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 7c |
|
|
Nine Months Ended September 30, 2010 |
|
|||||||
|
|
Compared to September 30, 2009 |
|
|||||||
(dollars in millions) |
|
Volume 1 |
|
Rate 1 |
|
Total |
|
|||
Change in Interest Income: |
|
|
|
|
|
|
|
|||
Funds Sold |
|
$ |
(0.6 |
) |
$ |
0.1 |
|
$ |
(0.5 |
) |
Investment Securities |
|
|
|
|
|
|
|
|||
Trading |
|
(0.3 |
) |
(0.3 |
) |
(0.6 |
) |
|||
Available-for-Sale |
|
53.8 |
|
(41.3 |
) |
12.5 |
|
|||
Held-to-Maturity |
|
(1.9 |
) |
(0.1 |
) |
(2.0 |
) |
|||
Loans Held for Sale |
|
(0.6 |
) |
0.7 |
|
0.1 |
|
|||
Loans and Leases |
|
|
|
|
|
|
|
|||
Commercial and Industrial |
|
(6.4 |
) |
2.9 |
|
(3.5 |
) |
|||
Commercial Mortgage |
|
2.5 |
|
(0.8 |
) |
1.7 |
|
|||
Construction |
|
(1.7 |
) |
1.0 |
|
(0.7 |
) |
|||
Commercial Lease Financing |
|
(1.4 |
) |
0.3 |
|
(1.1 |
) |
|||
Residential Mortgage |
|
(10.3 |
) |
(3.4 |
) |
(13.7 |
) |
|||
Home Equity |
|
(4.5 |
) |
(0.6 |
) |
(5.1 |
) |
|||
Automobile |
|
(4.5 |
) |
(0.7 |
) |
(5.2 |
) |
|||
Other 2 |
|
(2.1 |
) |
(0.4 |
) |
(2.5 |
) |
|||
Total Loans and Leases |
|
(28.4 |
) |
(1.7 |
) |
(30.1 |
) |
|||
Total Change in Interest Income |
|
22.0 |
|
(42.6 |
) |
(20.6 |
) |
|||
|
|
|
|
|
|
|
|
|||
Change in Interest Expense: |
|
|
|
|
|
|
|
|||
Interest-Bearing Deposits |
|
|
|
|
|
|
|
|||
Demand |
|
(0.1 |
) |
|
|
(0.1 |
) |
|||
Savings |
|
2.7 |
|
(13.1 |
) |
(10.4 |
) |
|||
Time |
|
(3.4 |
) |
(6.6 |
) |
(10.0 |
) |
|||
Total Interest-Bearing Deposits |
|
(0.8 |
) |
(19.7 |
) |
(20.5 |
) |
|||
Securities Sold Under Agreements to Repurchase |
|
6.6 |
|
(6.6 |
) |
|
|
|||
Long-Term Debt |
|
(1.5 |
) |
0.2 |
|
(1.3 |
) |
|||
Total Change in Interest Expense |
|
4.3 |
|
(26.1 |
) |
(21.8 |
) |
|||
|
|
|
|
|
|
|
|
|||
Change in Net Interest Income |
|
$ |
17.7 |
|
$ |
(16.5 |
) |
$ |
1.2 |
|
1 The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume and rate for that category.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries |
|
Salaries and Benefits |
Table 8 |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|||||||||||
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
|||||||
(dollars in thousands) |
|
2010 |
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|||||
Salaries |
|
$ |
30,080 |
|
$ |
29,942 |
|
$ |
29,988 |
|
$ |
89,165 |
|
$ |
90,565 |
|
Incentive Compensation |
|
3,403 |
|
3,447 |
|
5,524 |
|
10,296 |
|
12,223 |
|
|||||
Share-Based Compensation and Cash Grants for the Purchase of Company Stock |
|
1,045 |
|
3,984 |
|
595 |
|
5,585 |
|
1,986 |
|
|||||
Commission Expense |
|
1,836 |
|
1,259 |
|
1,523 |
|
4,441 |
|
5,528 |
|
|||||
Retirement and Other Benefits |
|
4,178 |
|
3,857 |
|
3,962 |
|
12,144 |
|
12,385 |
|
|||||
Payroll Taxes |
|
2,287 |
|
2,331 |
|
2,176 |
|
8,051 |
|
8,020 |
|
|||||
Medical, Dental, and Life Insurance |
|
2,263 |
|
2,481 |
|
2,619 |
|
7,224 |
|
6,519 |
|
|||||
Separation Expense |
|
1,748 |
|
199 |
|
|
|
1,998 |
|
369 |
|
|||||
Total Salaries and Benefits |
|
$ |
46,840 |
|
$ |
47,500 |
|
$ |
46,387 |
|
$ |
138,904 |
|
$ |
137,595 |
|
Bank of Hawaii Corporation and Subsidiaries |
|
|
Loan and Lease Portfolio Balances |
|
Table 9 |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|||||
(dollars in thousands) |
|
2010 |
|
2010 |
|
2010 |
|
2009 |
|
2009 |
|
|||||
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial and Industrial |
|
$ |
736,385 |
|
$ |
758,851 |
|
$ |
782,298 |
|
$ |
795,167 |
|
$ |
845,056 |
|
Commercial Mortgage |
|
817,752 |
|
816,165 |
|
834,086 |
|
841,431 |
|
777,498 |
|
|||||
Construction |
|
88,671 |
|
88,823 |
|
104,349 |
|
108,395 |
|
137,414 |
|
|||||
Lease Financing |
|
353,962 |
|
399,744 |
|
398,939 |
|
412,933 |
|
458,696 |
|
|||||
Total Commercial |
|
1,996,770 |
|
2,063,583 |
|
2,119,672 |
|
2,157,926 |
|
2,218,664 |
|
|||||
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential Mortgage |
|
2,073,340 |
|
2,087,380 |
|
2,138,094 |
|
2,190,677 |
|
2,246,729 |
|
|||||
Home Equity |
|
836,990 |
|
861,196 |
|
892,109 |
|
921,571 |
|
952,076 |
|
|||||
Automobile |
|
221,265 |
|
238,671 |
|
260,472 |
|
283,937 |
|
299,657 |
|
|||||
Other 1 |
|
183,689 |
|
190,081 |
|
199,734 |
|
205,674 |
|
214,232 |
|
|||||
Total Consumer |
|
3,315,284 |
|
3,377,328 |
|
3,490,409 |
|
3,601,859 |
|
3,712,694 |
|
|||||
Total Loans and Leases |
|
$ |
5,312,054 |
|
$ |
5,440,911 |
|
$ |
5,610,081 |
|
$ |
5,759,785 |
|
$ |
5,931,358 |
|
Higher Risk Loans Outstanding
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|||||
(dollars in thousands) |
|
2010 |
|
2010 |
|
2010 |
|
2009 |
|
2009 |
|
|||||
Residential Home Building 2 |
|
$ |
18,444 |
|
$ |
18,993 |
|
$ |
29,475 |
|
$ |
31,067 |
|
$ |
38,592 |
|
Residential Land Loans 3 |
|
28,149 |
|
30,262 |
|
33,514 |
|
37,873 |
|
43,128 |
|
|||||
Home Equity Loans 4 |
|
23,957 |
|
25,055 |
|
24,595 |
|
28,076 |
|
24,339 |
|
|||||
Air Transportation 5 |
|
38,611 |
|
39,165 |
|
39,743 |
|
50,426 |
|
60,996 |
|
|||||
Total Higher Risk Loans |
|
$ |
109,161 |
|
$ |
113,475 |
|
$ |
127,327 |
|
$ |
147,442 |
|
$ |
167,055 |
|
1 Comprised of other revolving credit, installment, and lease financing.
2 Residential home building loans were $39.7 million as of September 30, 2010. Higher risk loans within this segment are defined as those loans with a well-defined weakness or weaknesses that jeopardizes the orderly repayment of the loan.
3 We consider all of our residential land loans, which are consumer loans secured by unimproved lots, to be of higher risk due to the volatility in the value of the underlying collateral.
4 Higher risk home equity loans are defined as those loans originated in 2005 or later, with current monitoring credit scores below 600, and with original loan-to-value ratios greater than 70%.
5 We consider all of our air transportation leases to be of higher risk due to the weak financial profile of the industry.
Deposits
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|||||
(dollars in thousands) |
|
2010 |
|
2010 |
|
2010 6 |
|
2009 6 |
|
2009 6 |
|
|||||
Consumer |
|
$ |
4,976,317 |
|
$ |
4,925,579 |
|
$ |
4,940,576 |
|
$ |
4,926,567 |
|
$ |
4,776,626 |
|
Commercial |
|
4,053,306 |
|
4,036,679 |
|
4,126,287 |
|
4,115,286 |
|
4,002,619 |
|
|||||
Public and Other |
|
572,839 |
|
362,401 |
|
427,221 |
|
367,823 |
|
470,855 |
|
|||||
Total Deposits |
|
$ |
9,602,462 |
|
$ |
9,324,659 |
|
$ |
9,494,084 |
|
$ |
9,409,676 |
|
$ |
9,250,100 |
|
6 Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawaii Corporation and Subsidiaries |
|
|
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More |
|
Table 10 |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|||||
(dollars in thousands) |
|
2010 |
|
2010 |
|
2010 |
|
2009 |
|
2009 |
|
|||||
Non-Performing Assets 1 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-Accrual Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial and Industrial |
|
$ |
1,287 |
|
$ |
741 |
|
$ |
3,342 |
|
$ |
6,646 |
|
$ |
9,924 |
|
Commercial Mortgage |
|
5,071 |
|
3,476 |
|
1,662 |
|
1,167 |
|
1,193 |
|
|||||
Construction |
|
3,569 |
|
5,640 |
|
7,297 |
|
8,154 |
|
15,534 |
|
|||||
Lease Financing |
|
117 |
|
63 |
|
73 |
|
631 |
|
690 |
|
|||||
Total Commercial |
|
10,044 |
|
9,920 |
|
12,374 |
|
16,598 |
|
27,341 |
|
|||||
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential Mortgage |
|
26,917 |
|
27,491 |
|
23,214 |
|
19,893 |
|
16,718 |
|
|||||
Home Equity |
|
2,303 |
|
2,638 |
|
2,844 |
|
5,153 |
|
3,726 |
|
|||||
Other 2 |
|
|
|
|
|
|
|
550 |
|
550 |
|
|||||
Total Consumer |
|
29,220 |
|
30,129 |
|
26,058 |
|
25,596 |
|
20,994 |
|
|||||
Total Non-Accrual Loans and Leases |
|
39,264 |
|
40,049 |
|
38,432 |
|
42,194 |
|
48,335 |
|
|||||
Non-Accrual Loans Held for Sale |
|
|
|
|
|
|
|
3,005 |
|
|
|
|||||
Foreclosed Real Estate |
|
5,910 |
|
3,192 |
|
3,192 |
|
3,132 |
|
201 |
|
|||||
Total Non-Performing Assets |
|
$ |
45,174 |
|
$ |
43,241 |
|
$ |
41,624 |
|
$ |
48,331 |
|
$ |
48,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Accruing Loans and Leases Past Due 90 Days or More |
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial and Industrial |
|
$ |
62 |
|
$ |
|
|
$ |
2,192 |
|
$ |
623 |
|
$ |
137 |
|
Construction |
|
|
|
|
|
2,170 |
|
|
|
3,005 |
|
|||||
Lease Financing |
|
|
|
|
|
|
|
120 |
|
|
|
|||||
Total Commercial |
|
62 |
|
|
|
4,362 |
|
743 |
|
3,142 |
|
|||||
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential Mortgage |
|
8,031 |
|
9,019 |
|
8,136 |
|
8,979 |
|
5,951 |
|
|||||
Home Equity |
|
1,246 |
|
2,256 |
|
1,608 |
|
2,210 |
|
1,698 |
|
|||||
Automobile |
|
348 |
|
464 |
|
571 |
|
875 |
|
749 |
|
|||||
Other 2 |
|
857 |
|
1,161 |
|
1,345 |
|
886 |
|
739 |
|
|||||
Total Consumer |
|
10,482 |
|
12,900 |
|
11,660 |
|
12,950 |
|
9,137 |
|
|||||
Total Accruing Loans and Leases Past Due 90 Days or More |
|
$ |
10,544 |
|
$ |
12,900 |
|
$ |
16,022 |
|
$ |
13,693 |
|
$ |
12,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Loans and Leases |
|
$ |
5,312,054 |
|
$ |
5,440,911 |
|
$ |
5,610,081 |
|
$ |
5,759,785 |
|
$ |
5,931,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases |
|
0.74 |
% |
0.74 |
% |
0.69 |
% |
0.73 |
% |
0.81 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ratio of Non-Performing Assets to Total Loans and Leases, Loans Held for Sale, and Foreclosed Real Estate |
|
0.85 |
% |
0.79 |
% |
0.74 |
% |
0.84 |
% |
0.82 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases, Commercial Loans Held for Sale, and Commercial Foreclosed Real Estate |
|
0.75 |
% |
0.62 |
% |
0.72 |
% |
1.03 |
% |
1.23 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate |
|
0.91 |
% |
0.90 |
% |
0.76 |
% |
0.72 |
% |
0.57 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases, Loans Held for Sale, and Foreclosed Real Estate |
|
1.04 |
% |
1.03 |
% |
1.02 |
% |
1.07 |
% |
1.02 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Quarter to Quarter Changes in Non-Performing Assets 1 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance at Beginning of Quarter |
|
$ |
43,241 |
|
$ |
41,624 |
|
$ |
48,331 |
|
$ |
48,536 |
|
$ |
39,054 |
|
Additions |
|
10,606 |
|
10,761 |
|
9,533 |
|
14,874 |
|
22,856 |
|
|||||
Reductions |
|
|
|
|
|
|
|
|
|
|
|
|||||
Payments |
|
(3,432 |
) |
(4,414 |
) |
(5,689 |
) |
(4,128 |
) |
(6,899 |
) |
|||||
Return to Accrual Status |
|
(964 |
) |
|
|
(3,505 |
) |
(1,818 |
) |
(3,373 |
) |
|||||
Transfer to Foreclosed Real Estate |
|
(2,070 |
) |
|
|
|
|
|
|
|
|
|||||
Sales of Foreclosed Real Estate |
|
(700 |
) |
|
|
|
|
(38 |
) |
(237 |
) |
|||||
Charge-offs/Write-downs |
|
(1,507 |
) |
(4,730 |
) |
(7,046 |
) |
(9,095 |
) |
(2,865 |
) |
|||||
Total Reductions |
|
(8,673 |
) |
(9,144 |
) |
(16,240 |
) |
(15,079 |
) |
(13,374 |
) |
|||||
Balance at End of Quarter |
|
$ |
45,174 |
|
$ |
43,241 |
|
$ |
41,624 |
|
$ |
48,331 |
|
$ |
48,536 |
|
1 |
Excluded from non-performing assets were contractually binding non-accrual loans held for sale of $4.2 million and $7.7 million as of December 31, 2009 and September 30, 2009, respectively. |
2 |
Comprised of other revolving credit, installment, and lease financing. |
Bank of Hawaii Corporation and Subsidiaries |
|
|
Reserve for Credit Losses |
|
Table 11 |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|||||||||||
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
|||||||
(dollars in thousands) |
|
2010 |
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|||||
Balance at Beginning of Period |
|
$ |
152,777 |
|
$ |
151,777 |
|
$ |
142,835 |
|
$ |
149,077 |
|
$ |
128,667 |
|
Loans and Leases Charged-Off |
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial and Industrial |
|
(7,635 |
) |
(3,056 |
) |
(4,769 |
) |
(14,597 |
) |
(23,493 |
) |
|||||
Commercial Mortgage |
|
|
|
(1,000 |
) |
(2,092 |
) |
(1,303 |
) |
(2,092 |
) |
|||||
Construction |
|
|
|
(1,417 |
) |
(5,845 |
) |
(2,274 |
) |
(5,845 |
) |
|||||
Lease Financing |
|
(108 |
) |
(107 |
) |
(120 |
) |
(405 |
) |
(4,613 |
) |
|||||
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential Mortgage |
|
(1,325 |
) |
(4,377 |
) |
(2,430 |
) |
(8,957 |
) |
(5,071 |
) |
|||||
Home Equity |
|
(2,871 |
) |
(2,886 |
) |
(3,614 |
) |
(13,193 |
) |
(9,233 |
) |
|||||
Automobile |
|
(1,530 |
) |
(1,752 |
) |
(2,602 |
) |
(5,309 |
) |
(7,694 |
) |
|||||
Other 1 |
|
(2,826 |
) |
(2,530 |
) |
(3,032 |
) |
(8,178 |
) |
(10,252 |
) |
|||||
Total Loans and Leases Charged-Off |
|
(16,295 |
) |
(17,125 |
) |
(24,504 |
) |
(54,216 |
) |
(68,293 |
) |
|||||
Recoveries on Loans and Leases Previously Charged-Off |
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial and Industrial |
|
433 |
|
367 |
|
252 |
|
1,658 |
|
1,022 |
|
|||||
Commercial Mortgage |
|
|
|
|
|
|
|
24 |
|
|
|
|||||
Lease Financing |
|
28 |
|
11 |
|
49 |
|
40 |
|
81 |
|
|||||
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential Mortgage |
|
696 |
|
236 |
|
448 |
|
1,354 |
|
719 |
|
|||||
Home Equity |
|
333 |
|
197 |
|
67 |
|
630 |
|
239 |
|
|||||
Automobile |
|
822 |
|
826 |
|
849 |
|
2,401 |
|
2,311 |
|
|||||
Other 1 |
|
624 |
|
549 |
|
581 |
|
1,800 |
|
2,004 |
|
|||||
Total Recoveries on Loans and Leases Previously Charged-Off |
|
2,936 |
|
2,186 |
|
2,246 |
|
7,907 |
|
6,376 |
|
|||||
Net Loans and Leases Charged-Off |
|
(13,359 |
) |
(14,939 |
) |
(22,258 |
) |
(46,309 |
) |
(61,917 |
) |
|||||
Provision for Credit Losses |
|
13,359 |
|
15,939 |
|
27,500 |
|
50,009 |
|
81,077 |
|
|||||
Provision for Unfunded Commitments |
|
|
|
|
|
|
|
|
|
250 |
|
|||||
Balance at End of Period 2 |
|
$ |
152,777 |
|
$ |
152,777 |
|
$ |
148,077 |
|
$ |
152,777 |
|
$ |
148,077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Components |
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for Loan and Lease Losses |
|
$ |
147,358 |
|
$ |
147,358 |
|
$ |
142,658 |
|
$ |
147,358 |
|
$ |
142,658 |
|
Reserve for Unfunded Commitments |
|
5,419 |
|
5,419 |
|
5,419 |
|
5,419 |
|
5,419 |
|
|||||
Total Reserve for Credit Losses |
|
$ |
152,777 |
|
$ |
152,777 |
|
$ |
148,077 |
|
$ |
152,777 |
|
$ |
148,077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average Loans and Leases Outstanding |
|
$ |
5,368,177 |
|
$ |
5,522,423 |
|
$ |
6,034,956 |
|
$ |
5,524,672 |
|
$ |
6,245,117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized) |
|
0.99 |
% |
1.09 |
% |
1.46 |
% |
1.12 |
% |
1.33 |
% |
|||||
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding |
|
2.77 |
% |
2.71 |
% |
2.41 |
% |
2.77 |
% |
2.41 |
% |
1 Comprised of other revolving credit, installment, and lease financing.
2 Included in this analysis is activity related to the Companys 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 12a |
|
|
Retail |
|
Commercial |
|
Investment |
|
Treasury |
|
Consolidated |
|
|||||
(dollars in thousands) |
|
Banking |
|
Banking |
|
Services |
|
and Other |
|
Total |
|
|||||
Three Months Ended September 30, 2010 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Net Interest Income |
|
$ |
46,746 |
|
$ |
35,236 |
|
$ |
4,043 |
|
$ |
12,601 |
|
$ |
98,626 |
|
Provision for Credit Losses |
|
6,288 |
|
7,121 |
|
(19 |
) |
(31 |
) |
13,359 |
|
|||||
Net Interest Income After Provision for Credit Losses |
|
40,458 |
|
28,115 |
|
4,062 |
|
12,632 |
|
85,267 |
|
|||||
Noninterest Income |
|
28,049 |
|
9,745 |
|
16,478 |
|
8,853 |
|
63,125 |
|
|||||
Noninterest Expense |
|
(43,391 |
) |
(23,370 |
) |
(13,851 |
) |
(9,278 |
) |
(89,890 |
) |
|||||
Income Before Provision for Income Taxes |
|
25,116 |
|
14,490 |
|
6,689 |
|
12,207 |
|
58,502 |
|
|||||
Provision for Income Taxes |
|
(9,293 |
) |
(421 |
) |
(2,475 |
) |
(2,249 |
) |
(14,438 |
) |
|||||
Net Income |
|
15,823 |
|
14,069 |
|
4,214 |
|
9,958 |
|
44,064 |
|
|||||
Total Assets as of September 30, 2010 |
|
$ |
3,094,047 |
|
$ |
2,251,004 |
|
$ |
242,312 |
|
$ |
7,129,240 |
|
$ |
12,716,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Three Months Ended September 30, 2009 1 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Net Interest Income |
|
$ |
53,441 |
|
$ |
40,232 |
|
$ |
4,275 |
|
$ |
10,939 |
|
$ |
108,887 |
|
Provision for Credit Losses |
|
15,599 |
|
11,918 |
|
33 |
|
(50 |
) |
27,500 |
|
|||||
Net Interest Income After Provision for Credit Losses |
|
37,842 |
|
28,314 |
|
4,242 |
|
10,989 |
|
81,387 |
|
|||||
Noninterest Income |
|
25,095 |
|
14,668 |
|
14,026 |
|
3,011 |
|
56,800 |
|
|||||
Noninterest Expense |
|
(42,380 |
) |
(25,072 |
) |
(14,952 |
) |
(1,583 |
) |
(83,987 |
) |
|||||
Income Before Provision for Income Taxes |
|
20,557 |
|
17,910 |
|
3,316 |
|
12,417 |
|
54,200 |
|
|||||
Provision for Income Taxes |
|
(7,636 |
) |
(6,037 |
) |
(1,227 |
) |
(2,829 |
) |
(17,729 |
) |
|||||
Net Income |
|
12,921 |
|
11,873 |
|
2,089 |
|
9,588 |
|
36,471 |
|
|||||
Total Assets as of September 30, 2009 1 |
|
$ |
3,441,050 |
|
$ |
2,547,978 |
|
$ |
253,580 |
|
$ |
5,965,417 |
|
$ |
12,208,025 |
|
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 12b |
|
|
Retail |
|
Commercial |
|
Investment |
|
Treasury |
|
Consolidated |
|
|||||
(dollars in thousands) |
|
Banking |
|
Banking |
|
Services |
|
and Other |
|
Total |
|
|||||
Nine Months Ended September 30, 2010 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Net Interest Income |
|
$ |
144,311 |
|
$ |
112,682 |
|
$ |
12,582 |
|
$ |
40,632 |
|
$ |
310,207 |
|
Provision for Credit Losses |
|
31,516 |
|
18,468 |
|
69 |
|
(44 |
) |
50,009 |
|
|||||
Net Interest Income After Provision for Credit Losses |
|
112,795 |
|
94,214 |
|
12,513 |
|
40,676 |
|
260,198 |
|
|||||
Noninterest Income |
|
77,322 |
|
31,461 |
|
45,814 |
|
49,184 |
|
203,781 |
|
|||||
Noninterest Expense |
|
(129,160 |
) |
(72,210 |
) |
(43,450 |
) |
(12,694 |
) |
(257,514 |
) |
|||||
Income Before Provision for Income Taxes |
|
60,957 |
|
53,465 |
|
14,877 |
|
77,166 |
|
206,465 |
|
|||||
Provision for Income Taxes |
|
(22,554 |
) |
(14,742 |
) |
(5,505 |
) |
(20,300 |
) |
(63,101 |
) |
|||||
Net Income |
|
38,403 |
|
38,723 |
|
9,372 |
|
56,866 |
|
143,364 |
|
|||||
Total Assets as of September 30, 2010 |
|
$ |
3,094,047 |
|
$ |
2,251,004 |
|
$ |
242,312 |
|
$ |
7,129,240 |
|
$ |
12,716,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Nine Months Ended September 30, 2009 1 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Net Interest Income |
|
$ |
164,534 |
|
$ |
121,328 |
|
$ |
12,593 |
|
$ |
10,345 |
|
$ |
308,800 |
|
Provision for Credit Losses |
|
44,921 |
|
34,868 |
|
1,583 |
|
(295 |
) |
81,077 |
|
|||||
Net Interest Income After Provision for Credit Losses |
|
119,613 |
|
86,460 |
|
11,010 |
|
10,640 |
|
227,723 |
|
|||||
Noninterest Income |
|
78,761 |
|
55,032 |
|
43,086 |
|
10,118 |
|
186,997 |
|
|||||
Noninterest Expense |
|
(130,165 |
) |
(78,453 |
) |
(47,309 |
) |
(5,577 |
) |
(261,504 |
) |
|||||
Income Before Provision for Income Taxes |
|
68,209 |
|
63,039 |
|
6,787 |
|
15,181 |
|
153,216 |
|
|||||
Provision for Income Taxes |
|
(25,287 |
) |
(26,120 |
) |
(2,511 |
) |
4,219 |
|
(49,699 |
) |
|||||
Net Income |
|
42,922 |
|
36,919 |
|
4,276 |
|
19,400 |
|
103,517 |
|
|||||
Total Assets as of September 30, 2009 1 |
|
$ |
3,441,050 |
|
$ |
2,547,978 |
|
$ |
253,580 |
|
$ |
5,965,417 |
|
$ |
12,208,025 |
|
1 Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawaii Corporation and Subsidiaries |
|
|
Selected Quarterly Financial Data |
|
Table 13 |
|
|
Three Months Ended |
|
|||||||||||||
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|||||
(dollars in thousands, except per share amounts) |
|
2010 |
|
2010 |
|
2010 |
|
2009 |
|
2009 |
|
|||||
Quarterly Operating Results |
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest and Fees on Loans and Leases |
|
$ |
70,198 |
|
$ |
71,997 |
|
$ |
77,271 |
|
$ |
77,457 |
|
$ |
79,530 |
|
Income on Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
|||||
Available-for-Sale |
|
40,775 |
|
44,989 |
|
43,841 |
|
41,369 |
|
46,419 |
|
|||||
Held-to-Maturity |
|
1,553 |
|
1,700 |
|
1,863 |
|
2,018 |
|
2,179 |
|
|||||
Deposits |
|
5 |
|
3 |
|
13 |
|
2 |
|
3 |
|
|||||
Funds Sold |
|
211 |
|
396 |
|
309 |
|
353 |
|
320 |
|
|||||
Other |
|
278 |
|
277 |
|
277 |
|
277 |
|
277 |
|
|||||
Total Interest Income |
|
113,020 |
|
119,362 |
|
123,574 |
|
121,476 |
|
128,728 |
|
|||||
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits |
|
7,041 |
|
7,930 |
|
8,307 |
|
10,317 |
|
12,235 |
|
|||||
Securities Sold Under Agreements to Repurchase |
|
6,670 |
|
6,472 |
|
6,429 |
|
6,411 |
|
6,394 |
|
|||||
Funds Purchased |
|
10 |
|
6 |
|
7 |
|
7 |
|
5 |
|
|||||
Long-Term Debt |
|
673 |
|
1,026 |
|
1,178 |
|
1,207 |
|
1,207 |
|
|||||
Total Interest Expense |
|
14,394 |
|
15,434 |
|
15,921 |
|
17,942 |
|
19,841 |
|
|||||
Net Interest Income |
|
98,626 |
|
103,928 |
|
107,653 |
|
103,534 |
|
108,887 |
|
|||||
Provision for Credit Losses |
|
13,359 |
|
15,939 |
|
20,711 |
|
26,801 |
|
27,500 |
|
|||||
Net Interest Income After Provision for Credit Losses |
|
85,267 |
|
87,989 |
|
86,942 |
|
76,733 |
|
81,387 |
|
|||||
Noninterest Income |
|
|
|
|
|
|
|
|
|
|
|
|||||
Trust and Asset Management |
|
10,534 |
|
11,457 |
|
11,708 |
|
11,746 |
|
10,915 |
|
|||||
Mortgage Banking |
|
6,811 |
|
3,752 |
|
3,464 |
|
4,218 |
|
4,656 |
|
|||||
Service Charges on Deposit Accounts |
|
12,737 |
|
14,856 |
|
13,814 |
|
14,160 |
|
14,014 |
|
|||||
Fees, Exchange, and Other Service Charges |
|
15,500 |
|
15,806 |
|
14,504 |
|
14,935 |
|
14,801 |
|
|||||
Investment Securities Gains (Losses), Net |
|
7,877 |
|
14,951 |
|
20,021 |
|
25,707 |
|
(5 |
) |
|||||
Insurance |
|
2,646 |
|
2,291 |
|
2,715 |
|
2,326 |
|
7,304 |
|
|||||
Other |
|
7,020 |
|
5,761 |
|
5,556 |
|
7,719 |
|
5,115 |
|
|||||
Total Noninterest Income |
|
63,125 |
|
68,874 |
|
71,782 |
|
80,811 |
|
56,800 |
|
|||||
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|||||
Salaries and Benefits |
|
46,840 |
|
47,500 |
|
44,564 |
|
50,973 |
|
46,387 |
|
|||||
Net Occupancy |
|
10,186 |
|
10,154 |
|
10,144 |
|
10,367 |
|
10,350 |
|
|||||
Net Equipment |
|
4,545 |
|
4,366 |
|
4,558 |
|
4,393 |
|
4,502 |
|
|||||
Professional Fees |
|
905 |
|
2,091 |
|
1,992 |
|
3,243 |
|
2,642 |
|
|||||
FDIC Insurance |
|
3,159 |
|
3,107 |
|
3,100 |
|
3,251 |
|
3,290 |
|
|||||
Other |
|
24,255 |
|
18,700 |
|
17,348 |
|
16,293 |
|
16,816 |
|
|||||
Total Noninterest Expense |
|
89,890 |
|
85,918 |
|
81,706 |
|
88,520 |
|
83,987 |
|
|||||
Income Before Provision for Income Taxes |
|
58,502 |
|
70,945 |
|
77,018 |
|
69,024 |
|
54,200 |
|
|||||
Provision for Income Taxes |
|
14,438 |
|
24,381 |
|
24,282 |
|
28,508 |
|
17,729 |
|
|||||
Net Income |
|
$ |
44,064 |
|
$ |
46,564 |
|
$ |
52,736 |
|
$ |
40,516 |
|
$ |
36,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic Earnings Per Share |
|
$ |
0.91 |
|
$ |
0.97 |
|
$ |
1.10 |
|
$ |
0.85 |
|
$ |
0.76 |
|
Diluted Earnings Per Share |
|
$ |
0.91 |
|
$ |
0.96 |
|
$ |
1.09 |
|
$ |
0.84 |
|
$ |
0.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance Sheet Totals |
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans and Leases |
|
$ |
5,312,054 |
|
$ |
5,440,911 |
|
$ |
5,610,081 |
|
$ |
5,759,785 |
|
$ |
5,931,358 |
|
Total Assets |
|
12,716,603 |
|
12,855,845 |
|
12,435,670 |
|
12,414,827 |
|
12,208,025 |
|
|||||
Total Deposits |
|
9,602,462 |
|
9,324,659 |
|
9,494,084 |
|
9,409,676 |
|
9,250,100 |
|
|||||
Total Shareholders Equity |
|
1,039,561 |
|
1,013,011 |
|
939,372 |
|
895,973 |
|
902,799 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Performance Ratios |
|
|
|
|
|
|
|
|
|
|
|
|||||
Return on Average Assets |
|
1.37 |
% |
1.48 |
% |
1.73 |
% |
1.31 |
% |
1.21 |
% |
|||||
Return on Average Shareholders Equity |
|
16.64 |
|
19.01 |
|
22.54 |
|
16.91 |
|
16.44 |
|
|||||
Efficiency Ratio 1 |
|
55.57 |
|
49.72 |
|
45.54 |
|
48.02 |
|
50.69 |
|
|||||
Net Interest Margin 2 |
|
3.27 |
|
3.51 |
|
3.72 |
|
3.57 |
|
3.85 |
|
1 The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
2 The net interest margin is defined as net interest income, on a fully-taxable equivalent basis, as a percentage of average earning assets.
Bank of Hawaii Corporation and Subsidiaries |
|
|
Hawaii Economic Trends |
|
Table 14 |
|
|
Eight Months Ended |
|
Year Ended |
|
|||||||||||
($ in millions; jobs in thousands) |
|
August 31, 2010 |
|
December 31, 2009 |
|
December 31, 2008 |
|
|||||||||
Hawaii Economic Trends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
State General Fund Revenues 1 |
|
$ |
2,836.2 |
|
7.2 |
% |
$ |
4,018.2 |
|
(12.8 |
)% |
$ |
4,608.6 |
|
(1.6 |
)% |
General Excise and Use Tax Revenue 1 |
|
$ |
1,596.4 |
|
2.1 |
|
$ |
2,296.3 |
|
(10.6 |
)% |
$ |
2,567.8 |
|
(2.1 |
)% |
Jobs, seasonally adjusted 2 |
|
586.5 |
|
0.1 |
|
586.1 |
|
(3.2 |
) |
605.6 |
|
(3.5 |
) |
|
|
September 30, |
|
December 31, |
|
September 30, |
|
December 31, |
|
||
(annual percentage, except 2009 and 2010) |
|
2010 |
|
2009 |
|
2009 |
|
2008 |
|
2007 |
|
Unemployment 3 |
|
|
|
|
|
|
|
|
|
|
|
Statewide, seasonally adjusted |
|
6.3 |
% |
6.8 |
% |
7.0 |
% |
5.6 |
% |
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Oahu |
|
5.3 |
|
5.3 |
|
6.2 |
|
3.5 |
|
2.5 |
|
Island of Hawaii |
|
9.5 |
|
9.6 |
|
10.4 |
|
5.5 |
|
3.3 |
|
Maui |
|
7.9 |
|
8.8 |
|
9.3 |
|
4.5 |
|
2.8 |
|
Kauai |
|
8.6 |
|
8.9 |
|
9.2 |
|
4.4 |
|
2.5 |
|
|
|
September 30, |
|
||
(percentage change, except months of inventory) |
|
2010 |
|
2009 |
|
Housing Trends (Single Family Oahu) 4 |
|
|
|
|
|
Median Home Price |
|
4.2 |
% |
(8.0 |
)% |
Home Sales Volume (units) |
|
20.4 |
% |
(12.4 |
)% |
Months of Inventory |
|
6.3 |
|
8.6 |
|
|
|
Monthly Visitor Arrivals, |
|
Percentage Change |
|
(in thousands) |
|
Seasonally Adjusted |
|
from Previous Month |
|
Tourism 2 |
|
|
|
|
|
|
|
|
|
|
|
July 31, 2010 |
|
598.4 |
|
1.5 |
% |
June 30, 2010 |
|
589.6 |
|
1.8 |
|
May 31, 2010 |
|
579.3 |
|
5.0 |
|
April 30, 2010 |
|
551.7 |
|
(2.8 |
) |
March 31, 2010 |
|
567.7 |
|
4.7 |
|
February 28, 2010 |
|
542.2 |
|
(0.6 |
) |
January 31, 2010 |
|
545.5 |
|
1.1 |
|
December 31, 2009 |
|
539.5 |
|
1.5 |
|
November 30, 2009 |
|
531.5 |
|
(0.4 |
) |
October 31, 2009 |
|
533.6 |
|
(3.5 |
) |
September 30, 2009 |
|
552.8 |
|
3.5 |
|
August 31, 2009 |
|
534.1 |
|
(1.0 |
) |
July 31, 2009 |
|
539.5 |
|
5.3 |
|
June 30, 2009 |
|
512.4 |
|
(5.7 |
) |
May 31, 2009 |
|
543.6 |
|
(0.6 |
) |
April 30, 2009 |
|
546.8 |
|
6.7 |
|
March 31, 2009 |
|
512.7 |
|
(4.8 |
) |
February 28, 2009 |
|
538.4 |
|
0.5 |
|
January 31, 2009 |
|
535.5 |
|
2.6 |
|
1 Source: Hawaii Department of Business, Economic Development & Tourism.
2 Source: University of Hawaii Economic Research Organization.
3 Source: University of Hawaii Economic Research Organization, State of Hawaii Department of Labor and Industrial Relations.
4 Source: Honolulu Board of REALTORS.
Note: Certain prior period seasonally adjusted information has been revised.