UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Securities registered pursuant to Section 12(b) of the Act:
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Depository Shares, Each Representing 1/40th Interest in a Share of 4.375% Fixed Rate Non-Cumulative Preferred Stock, Series A |
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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:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 7.01. |
Regulation FD Disclosure. |
Bank of Hawaii Corporation (the “Company”) is furnishing in this Current Report on Form 8-K the Bank of Hawaii Corporation Second Quarter 2022 Financial Report August 15, 2022 Update (the “Presentation”), which updates the presentation materials previously furnished by the Company as Exhibit 99.2 on the Company’s Current Report on Form 8-K dated July 25, 2022. The Presentation is intended to be used by the Company in various conversations with investors, analysts, or others from time to time. A copy of the Presentation is furnished herewith as Exhibit 99.1 and is incorporated into this Item 7.01 by reference.
Investors and others should note that the Company intends to announce financial and other information to the Company’s investors using the Company’s investor relations website, social media channels, press releases, SEC filings and public conference calls and webcasts, all for purposes of complying with the Company’s disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, as information is updated and new information is posted.
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Item 9.01. |
Financial Statements and Exhibits. |
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(d) |
Exhibits |
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Exhibit No. |
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99.1 |
Bank of Hawaii Corporation Second Quarter 2022 Financial Report August 15, 2022 Update |
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104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
The information furnished in Items 7.01 and 9.01, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities under that section, and shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings.
Forward-Looking Statements
This Current Report on Form 8-K and the exhibits attached thereto may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainty. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. In addition, words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Such statements are based on management’s current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Do not unduly rely on forward-looking statements. Investors are cautioned that there can be no assurance actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors. Please refer to the risks detailed from time to time in the reports we file with the SEC, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC, as well as other filings on Form 10-Q and periodic filings on Form 8-K, for additional factors that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law.
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.
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Date: August 15, 2022 |
Bank of Hawaii Corporation |
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By: |
/s/ Patrick M. McGuirk |
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Patrick M. McGuirk |
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Senior Executive Vice President and Corporate Secretary |
Bank of Hawaii Corporation second quarter 2022 financial report August 15, 2022 Update Exhibit 99.1
this presentation, and other statements made by the Company in connection with it, may contain forward-looking statements concerning, among other things, forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. we have not committed to update forward-looking statements to reflect later events or circumstances. disclosure 2 forward-looking statements
unemployment experience & forecast source: University of Hawaii Economic Research Organization (UHERO), seasonally adjusted Hawaii unemployment rate 3
strong real estate market Oahu market indicators – 2022 vs 2021 4 source: Honolulu Board of Realtors, compiled from MLS data continued strength in Oahu real estate
daily arrivals total passenger count* 5 *source: Department of Business, Economic Development, and Tourism, excluding from Canada Dec-31
revenue per available room revenue per available room (RevPAR)* 6 *source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT)
2Q financial update
balanced core loan growth $ in millions 8 $7,879 $1,970 $3,070 $32 $12,952 2016 - 2021 CAGR: 6.0% note: numbers may not add up due to rounding, CAGR and annual growth rate exclude PPP 2016 - 2021 CAGR: 6.5% annual growth rate annual growth rate
low cost, long duration deposits $ in billions 9 2016 - 2021 CAGR: 7.3% source: S&P Capital IQ, S&P Regional Banking Index excluding banks greater than $50bn as of 1/4/22
sustainable NII growth $ in millions 10 note: core NII excludes PPP and significant items; numbers may not add up due to rounding $5.3 Outlook: 10 – 11 bps NIM increase in Q3
ample liquidity loan to deposit ratio compared with peers strong liquidity to fund continued growth 11 note: S&P Regional Banking Index excluding banks greater than $50bn as of 1/4/22, weighted average peers by total assets as of 1Q22 local peer bank average contains BOH, FHB, CPB, ASB, and TBNK; data unavailable for ASB prior to 2008 and FHB prior to 2011
12 asset sensitive note: numbers may not add up due to rounding
financial summary $ in millions, except per share amounts 13 note: numbers may not add up due to rounding
disciplined expenses $ in millions 14 modest increase in core expenses and steady investment in innovation note: numbers may not add up due to rounding Outlook: Reiterated 2022 NIE of $415MM, with Q3 higher than Q4 due to payroll seasonality
performance metrics 15 note: 2Q22 regulatory capital ratios are preliminary
16 strong risk-based capital fortress capital position note: 2Q22 regulatory capital ratios are preliminary; KBW Regional Banking Index (KRX) as of 1/4/22
2Q credit update
loan portfolio excluding PPP 18 40% commercial 72% real estate secured wtd avg LTV 57% 57% w/ BOH ≥ 10 yrs avg balance $0.6MM CRE C&I residential mortgage home equity auto leasing other consumer construction 60% consumer 85% real estate secured wtd avg LTV 55% 58% w/ BOH ≥ 10 yrs 80% of portfolio secured with quality real estate with combined weighted average loan to value of 56% note: excludes $32MM in PPP loan balances including deferred costs and fees
credit quality 19 * 73% of total criticized in CRE with 61% wtd avg LTV
2Q22 - production quality 20 commercial consumer
reserve trend 21 $ in millions allowance for credit losses note: balances and coverage ratio based on allowance for credit losses – loans and leases
other highlights
23 superior returns Financial Crisis COVID-19 BOH ranked in Top 5 for last 18 years market leading brand robust and sustainable growth focused execution strong asset quality, liquidity, and capital source: S&P Capital IQ, KBW Regional Banking Index (KRX) as of 1/4/22
Q & A
appendix
customer relief update 26 commercial consumer 99.0% of former deferrals are current 98.2% decline in deferrals since June 30, 2020 100% secured 49% wtd avg LTV 100% paying interest
high risk industries $1,461 million (11%) / $1,440 million (11%) excluding PPP 27
retail $714 million (6%) – excluding PPP 28 94% real estate secured 56% wtd avg LTV average exposure $3.6MM largest exposure $38MM 64% of portfolio has an LTV ≤ 65% 99% is secured or has essential anchor 0% deferred
lodging $577 million (4%) – excluding PPP 29 87% real estate secured 56% wtd avg LTV average exposure $11.1MM largest exposure $57MM 84% of portfolio has an LTV ≤ 65% 94% of unsecured outstandings to global hotel and timeshare brands 100% of deferred is secured and paying interest
restaurant / entertainment $149 million (1%) – excluding PPP 30 59% real estate secured 69% wtd avg LTV average exposure $2.6MM largest exposure $28MM 24% of portfolio has an LTV ≤ 65% 0% deferred