boh-8k_20221024.htm
false 0000046195 0000046195 2022-10-24 2022-10-24 0000046195 us-gaap:CommonStockMember 2022-10-24 2022-10-24 0000046195 us-gaap:SeriesAPreferredStockMember 2022-10-24 2022-10-24

 

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

October 24, 2022

(Date of earliest event reported)

 

 

BANK OF HAWAII CORPORATION

(Exact name of registrant as specified in its charter)

 

Delaware

1-6887

99-0148992

(State of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

 

130 Merchant Street

Honolulu

Hawaii

96813

(Address of principal executive offices)

(City)

(State)

(Zip Code)

 

(888) 643-3888

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.01 per share

 

BOH

 

New York Stock Exchange

 

 

 

 

 

Depository Shares, Each Representing 1/40th Interest in a Share of 4.375% Fixed Rate Non-Cumulative Preferred Stock, Series A

 

BOH.PRA

 

New York Stock Exchange

 

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:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

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.

 

 

 


 

 

Item 2.02.

Results of Operations and Financial Condition.

On October 24, 2022, Bank of Hawaii Corporation announced its results of operations for the quarter ended September 30, 2022.  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.

 

 

 

99.1

October 24, 2022 Press Release: Bank of Hawaii Corporation Third Quarter 2022 Financial Results.  Any internet addresses provided in this release are for informational purposes only and are not intended to be hyperlinks.  Furnished herewith.

 

 

99.2

Bank of Hawaii Corporation Thrid Quarter 2022 Financial Report

 

 

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 


 

 

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 24, 2022

Bank of Hawaii Corporation

 

 

 

 

 

By:

/s/ Patrick M. McGuirk

 

 

Patrick M. McGuirk

 

 

Senior Executive Vice President and Corporate Secretary

 

 

 

 

boh-ex991_7.htm

Exhibit 99.1

 

Bank of Hawai‘i Corporation Third Quarter 2022 Financial Results

 

 

Diluted Earnings Per Common Share $1.28  

 

Net Income $52.8 Million

 

Board of Directors Declares Dividend of $0.70 Per Common Share

 

 

FOR IMMEDIATE RELEASE

 

HONOLULU, HI (October 24, 2022) -- Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $1.28 for the third quarter of 2022, compared with diluted earnings per common share of $1.38 in the previous quarter and $1.52 in the same quarter last year.  Net income for the third quarter of 2022 was $52.8 million, down 7.1% from the second quarter of 2022 and down 14.9% from the third quarter of 2021. The decrease from the second quarter of 2022 was primarily due to a one-time pre-tax charge of $6.9 million related to our agreement to sell assets that will terminate certain leveraged leases and a decrease in the negative provision for credit losses.  The decrease from the third quarter of 2021 was primarily due to the aforementioned charge, a decrease in the negative provision for credit losses and lower PPP income in the current quarter and one-time items in the third quarter of 2021.  

 

“Bank of Hawai‘i continued to perform well during the third quarter of 2022," said Peter Ho, Chairman, President, and CEO.  “We experienced quality core market loan growth and continued net interest income and margin expansion. Asset quality, capital, and liquidity remained strong.”  

 

Financial Highlights

 

 

The return on average assets for the third quarter of 2022 was 0.91% compared with 1.00% in the previous quarter and 1.07% in the same quarter of 2021.  

 

 

The return on average common equity for the third quarter of 2022 was 16.98% compared with 18.19% in the previous quarter and 17.08% in the same quarter of 2021.  

 

 

Net interest income for the third quarter of 2022 was $141.7 million, an increase of 6.6% from the second quarter of 2022 and an increase of 11.7% from the third quarter of 2021.  Net interest margin was 2.60% in the third quarter of 2022, an increase of 13 basis points compared to the previous quarter and an increase of 28 basis points from the same quarter of 2021.  

 

o

The increase in net interest income and margin in the third quarter of 2022 compared to prior periods was due to the higher rate environment and continued strong loan growth.

 

o

Net interest income for the second quarter of 2022 included $1.1 million of interest recoveries.  

- more –

 


Bank of Hawaii Corporation Third Quarter 2022 Financial Results                                          

 

Page 2

 

 

 

There was no provision for credit losses for the third quarter of 2022 compared with a net benefit of $2.5 million in the previous quarter and a net benefit of $10.4 million in the same quarter of 2021.  

 

 

Noninterest income was $30.7 million in the third quarter of 2022, a decrease of 27.3% from the previous quarter and a decrease of 25.9% from the same quarter of 2021 primarily due to one-time items in the current quarter.

 

o

Noninterest income in the current quarter included a one-time pre-tax charge of $6.9 million related to our agreement to sell assets that will terminate leveraged leases related to 31 locomotives.  The sale and lease termination will complete the Company’s process of exiting the leveraged lease market. In addition, noninterest income in the current quarter also included a negative adjustment of $0.9 million related to a change in the Visa Class B conversion ratio.  

 

 

Noninterest expense was $105.7 million in the third quarter of 2022, an increase of 2.7% from the previous quarter and an increase of 9.6% from the same quarter of 2021.  

 

o

Compared to the same period in 2021, noninterest expense included the impact of higher salaries and benefits, including $1.8 million in separation expenses, and higher occupancy expenses, primarily due to a one-time benefit in the same quarter of last year from the sale of property.

 

o

One-time significant items in the third quarter of 2021 included a gain of $6.3 million related to the sale of property partially offset by $3.8 million of fees related to the early termination of repurchase agreements and $1.2 million in separation expenses.

 

 

The effective tax rate for the third quarter of 2022 was 20.7% compared with 23.8% in the previous quarter and 24.4% during the same quarter of 2021.  

 

o

The lower effective tax rate in the current quarter is primarily due to tax benefits related to the aforementioned agreement to sell assets that will terminate certain leveraged leases.

 

Asset Quality

 

The Company’s overall asset quality remained strong during the third quarter of 2022.  

 

 

Total non-performing assets were $13.9 million at September 30, 2022, down by $1.6 million from June 30, 2022 and down $6.8 million from September 30, 2021.  Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.10% at the end of the quarter, a decrease of 2 basis points from the end of the prior quarter and a decrease of 7 basis points from the same quarter of 2021.  

 

 

Net loan and lease charge-offs during the third quarter of 2022 were $1.1 million or 0.03% annualized of total average loans and leases outstanding.

 

o

Net loan and lease charge-offs for the third quarter of 2022 were comprised of charge-offs of $2.9 million partially offset by recoveries of $1.7 million.  

 

o

Compared to the prior quarter, net loan and lease charge-offs increased by $0.5 million or 1 basis point annualized on total average loans and leases outstanding.  

 

o

Compared to the same quarter of 2021, net loan and lease charge-offs decreased by $0.05 million or 1 basis point annualized on total average loans and leases outstanding.  

 

 

The allowance for credit losses on loans and leases was $146.4 million at September 30, 2022, a decrease of $2.1 million from June 30, 2022 and a decrease of $21.5 million from September 30, 2021.  The ratio of the allowance for credit losses to total loans and leases outstanding was 1.10% at the end of the quarter, down 5 basis points from the end of the prior quarter and down 29 basis points from the end of the same quarter of 2021.  

- more -

 


Bank of Hawaii Corporation Third Quarter 2022 Financial Results                                          

 

Page 3

 

Balance Sheet

 

 

Total assets were $23.1 billion at September 30, 2022, a decrease of 0.4% from June 30, 2022 and an increase of 0.7% from September 30, 2021.  

 

 

The investment securities portfolio was $7.9 billion at September 30, 2022, a decrease of 4.7% from June 30, 2022 and a decrease of 14.8% from September 30, 2021.  

 

o

During the third quarter, the Company transferred investment securities with total fair value of approximately $1.3 billion from available-for-sale to held-to-maturity.

 

o

The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.

 

 

Total loans and leases were $13.3 billion at September 30, 2022, an increase of 2.9% from June 30, 2022 and an increase of 10.3% from September 30, 2021.  

 

o

Total loans and leases excluding PPP loans were $13.3 billion at September 30, 2022, an increase of 2.9% from June 30, 2022 and an increase of 12.7% from September 30, 2021.  

 

 

Total deposits were $20.9 billion at September 30, 2022, a decrease of 0.7% from June 30, 2022 and an increase of 1.9% from September 30, 2021.

 

Capital and Dividends

 

 

The Tier 1 Capital Ratio was 12.72% at September 30, 2022 compared with 13.01% at June 30, 2022 and 13.47% at September 30, 2021.  

 

 

The Tier 1 Leverage Ratio was 7.28% at September 30, 2022 compared with 7.29% at June 30, 2022 and 7.10% at September 30, 2021.

 

 

The Company repurchased 187.5 thousand shares of common stock at a total cost of $15.0 million under its share repurchase program in the third quarter of 2022 at an average cost of $79.84 per share repurchased.

 

o

Total remaining buyback authority under the share repurchase program was $50.9 million at September 30, 2022.

 

 

The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares.  The dividend will be payable on December 14, 2022 to shareholders of record at the close of business on November 30, 2022.  

 

 

On October 4, 2022, the Board of Directors declared the quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, on its preferred stock.  The depositary shares representing the Series A Preferred Stock are traded on the NYSE under the symbol “BOH.PRA.”  The dividend will be payable on November 1, 2022 to shareholders of record of the preferred stock at the close of business on October 17, 2022.

 

- more -


 


Bank of Hawaii Corporation Third Quarter 2022 Financial Results                                          

 

Page 4

 

 

Conference Call Information

 

The Company will review its third quarter financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time).  The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawai‘i Corporation's website, www.boh.com.

 

 

The webcast can be accessed via the link below: https://register.vevent.com/register/BIb16c1a66caad46fe8057fb079c9fe595.

 

A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawaii Time on Monday, October 24, 2022. The replay will be accessible via the same link.  In addition, the replay will be available on the Company's website, www.boh.com.

 

Forward-Looking Statements

 

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements.  Do not unduly rely on forward-looking statements.  Actual results might differ significantly from our forecasts and expectations because of a variety of factors.  More information about these factors is contained in Bank of Hawai‘i Corporation's Annual Report on Form 10-K for the year ended December 31, 2021 and its Form 10-Q for the fiscal quarters ended March 31, 2022 and June 30, 2022, which were filed with the U.S. Securities and Exchange Commission.  These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

 

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

# # # #

 

 

 


 

 


 

Bank of Hawaii Corporation and Subsidiaries

 

 

 

 

 

 

 

 

 

 

Financial Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 1

 

Three Months Ended

 

 

Nine Months Ended

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

September 30,

 

 

(dollars in thousands, except per share amounts)

2022

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

For the Period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

$

141,655

 

 

$

132,902

 

 

$

126,819

 

 

$

399,820

 

 

$

370,902

 

 

Provision for Credit Losses

 

-

 

 

 

(2,500

)

 

 

(10,400

)

 

 

(8,000

)

 

 

(40,800

)

 

Total Noninterest Income

 

30,660

 

 

 

42,158

 

 

 

41,378

 

 

 

116,369

 

 

 

128,779

 

 

Total Noninterest Expense

 

105,749

 

 

 

102,939

 

 

 

96,519

 

 

 

312,562

 

 

 

291,911

 

 

Pre-Provision Net Revenue

 

66,566

 

 

 

72,121

 

 

 

71,678

 

 

 

203,627

 

 

 

207,770

 

 

Net Income

 

52,801

 

 

 

56,862

 

 

 

62,053

 

 

 

164,497

 

 

 

189,535

 

 

Net Income Available to Common Shareholders

 

50,832

 

 

 

54,893

 

 

 

61,047

 

 

 

158,590

 

 

 

188,529

 

 

Basic Earnings Per Common Share

 

1.28

 

 

 

1.38

 

 

 

1.53

 

 

 

4.00

 

 

 

4.73

 

 

Diluted Earnings Per Common Share

 

1.28

 

 

 

1.38

 

 

 

1.52

 

 

 

3.98

 

 

 

4.70

 

 

Dividends Declared Per Common Share

 

0.70

 

 

 

0.70

 

 

 

0.70

 

 

 

2.10

 

 

 

2.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets

 

0.91

 

%

 

1.00

 

%

 

1.07

 

%

 

0.96

 

%

 

1.15

 

%

Return on Average Shareholders' Equity

 

15.31

 

 

 

16.40

 

 

 

15.41

 

 

 

15.25

 

 

 

17.31

 

 

Return on Average Common Equity

 

16.98

 

 

 

18.19

 

 

 

17.08

 

 

 

16.81

 

 

 

18.10

 

 

Efficiency Ratio 1

 

61.37

 

 

 

58.80

 

 

 

57.38

 

 

 

60.55

 

 

 

58.42

 

 

Net Interest Margin 2

 

2.60

 

 

 

2.47

 

 

 

2.32

 

 

 

2.47

 

 

 

2.37

 

 

Dividend Payout Ratio 3

 

54.69

 

 

 

50.72

 

 

 

45.75

 

 

 

52.50

 

 

 

43.13

 

 

Average Shareholders' Equity to Average Assets

 

5.91

 

 

 

6.08

 

 

 

6.95

 

 

 

6.28

 

 

 

6.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans and Leases

$

13,126,717

 

 

$

12,700,825

 

 

$

11,958,321

 

 

$

12,709,045

 

 

$

12,002,426

 

 

Average Assets

 

23,135,820

 

 

 

22,891,262

 

 

 

22,993,036

 

 

 

22,959,246

 

 

 

22,079,174

 

 

Average Deposits

 

20,863,681

 

 

 

20,569,363

 

 

 

20,473,777

 

 

 

20,621,310

 

 

 

19,619,053

 

 

Average Shareholders' Equity

 

1,367,946

 

 

 

1,390,653

 

 

 

1,598,076

 

 

 

1,441,706

 

 

 

1,463,566

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share of Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book Value 4

$

27.55

 

 

$

29.09

 

 

$

35.16

 

 

$

27.55

 

 

$

35.16

 

 

Tangible Book Value

 

26.76

 

 

 

28.30

 

 

 

34.38

 

 

 

26.76

 

 

 

34.38

 

 

Market Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Closing

 

76.12

 

 

 

74.40

 

 

 

82.17

 

 

 

76.12

 

 

 

82.17

 

 

   High

 

85.45

 

 

 

84.93

 

 

 

87.12

 

 

 

92.38

 

 

 

99.10

 

 

   Low

 

70.89

 

 

 

70.97

 

 

 

75.68

 

 

 

70.89

 

 

 

75.65

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

June 30,

 

 

December 31,

 

 

September 30,

 

 

 

 

 

 

 

2022

 

 

2022

 

 

2021

 

 

2021

 

 

As of Period End:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Totals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and Leases

 

 

 

 

$

13,321,606

 

 

$

12,951,573

 

 

$

12,259,076

 

 

$

12,072,750

 

 

Total Assets

 

 

 

 

 

23,134,040

 

 

 

23,232,699

 

 

 

22,784,941

 

 

 

22,965,383

 

 

Total Deposits

 

 

 

 

 

20,888,773

 

 

 

21,025,681

 

 

 

20,360,108

 

 

 

20,493,678

 

 

Other Debt

 

 

 

 

 

10,319

 

 

 

10,343

 

 

 

10,391

 

 

 

10,414

 

 

Total Shareholders' Equity

 

 

 

 

 

1,282,384

 

 

 

1,348,746

 

 

 

1,611,611

 

 

 

1,597,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Performing Assets

 

 

 

 

$

13,868

 

 

$

15,493

 

 

$

18,966

 

 

$

20,620

 

 

Allowance for Credit Losses - Loans and Leases

 

 

 

 

 

146,436

 

 

 

148,512

 

 

 

157,821

 

 

 

167,920

 

 

Allowance to Loans and Leases Outstanding 5

 

 

 

 

 

1.10

 

%

 

1.15

 

%

 

1.29

 

%

 

1.39

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios 6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital Ratio

 

 

 

 

 

11.42

 

%

 

11.66

 

%

 

12.12

 

%

 

12.02

 

%

Tier 1 Capital Ratio

 

 

 

 

 

12.72

 

 

 

13.01

 

 

 

13.56

 

 

 

13.47

 

 

Total Capital Ratio

 

 

 

 

 

13.82

 

 

 

14.14

 

 

 

14.81

 

 

 

14.72

 

 

Tier 1 Leverage Ratio

 

 

 

 

 

7.28

 

 

 

7.29

 

 

 

7.32

 

 

 

7.10

 

 

Total Shareholders' Equity to Total Assets

 

 

 

 

 

5.54

 

 

 

5.81

 

 

 

7.07

 

 

 

6.95

 

 

Tangible Common Equity to Tangible Assets 7

 

 

 

 

 

4.64

 

 

 

4.90

 

 

 

6.15

 

 

 

6.04

 

 

Tangible Common Equity to Risk-Weighted Assets 7

 

 

 

 

 

7.97

 

 

 

8.72

 

 

 

11.44

 

 

 

11.46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Financial Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full-Time Equivalent Employees

 

 

 

 

 

2,115

 

 

 

2,114

 

 

 

2,056

 

 

 

2,049

 

 

Branches

 

 

 

 

 

51

 

 

 

54

 

 

 

54

 

 

 

54

 

 

ATMs

 

 

 

 

 

316

 

 

 

310

 

 

 

307

 

 

 

303

 

 

 

1

Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).

2

Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.

3

Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.

4

Book Value was revised from $35.30 for the three months ended and nine months ended September 30, 2021.

5

The numerator comprises the Allowance for Credit Losses - Loans and Leases.

6

Regulatory capital ratios as of September 30, 2022 are preliminary.

7

Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures.  Tangible common equity is defined by the Company as common shareholders' equity minus goodwill.  

See Table 2 "Reconciliation of Non-GAAP Financial Measures".

 


 

 

Bank of Hawaii Corporation and Subsidiaries

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures

 

 

 

 

Table 2

 

 

 

 

September 30,

 

June 30,

 

December 31,

 

September 30,

 

(dollars in thousands)

 

 

2022

 

2022

 

2021

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Shareholders' Equity

$

1,282,384

 

$

1,348,746

 

$

1,611,611

 

$

1,597,109

 

Less: Preferred Stock

 

180,000

 

 

180,000

 

 

180,000

 

 

180,000

 

          Goodwill

 

 

 

31,517

 

 

31,517

 

 

31,517

 

 

31,517

 

Tangible Common Equity

$

1,070,867

 

$

1,137,229

 

$

1,400,094

 

$

1,385,592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

23,134,040

 

 

23,232,699

 

 

22,784,941

 

 

22,965,383

 

Less: Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

 

31,517

 

Tangible Assets

$

23,102,523

 

$

23,201,182

 

$

22,753,424

 

$

22,933,866

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk-Weighted Assets, determined in accordance

 

 

 

 

 

 

 

 

 

 

 

 

   with prescribed regulatory requirements 1

$

13,428,188

 

$

13,038,852

 

$

12,236,805

 

$

12,093,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Shareholders' Equity to Total Assets

 

5.54

%

 

5.81

%

 

7.07

%

 

6.95

%

Tangible Common Equity to Tangible Assets (Non-GAAP)

 

4.64

%

 

4.90

%

 

6.15

%

 

6.04

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital Ratio 1

 

12.72

%

 

13.01

%

 

13.56

%

 

13.47

%

Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1

 

7.97

%

 

8.72

%

 

11.44

%

 

11.46

%

 

1

Regulatory capital ratios as of September 30, 2022 are preliminary.

 

 


 

 

 

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)

2022

 

2022

 

2021

 

 

2022

 

2021

 

Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and Fees on Loans and Leases

$

115,013

 

$

101,663

 

$

100,570

 

 

$

311,115

 

$

300,763

 

Income on Investment Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale

 

16,995

 

 

17,984

 

 

16,396

 

 

 

52,079

 

 

48,700

 

Held-to-Maturity

 

20,243

 

 

18,838

 

 

16,754

 

 

 

57,782

 

 

43,630

 

Deposits

 

10

 

 

5

 

 

2

 

 

 

19

 

 

9

 

Funds Sold

 

2,335

 

 

719

 

 

382

 

 

 

3,181

 

 

779

 

Other

 

322

 

 

353

 

 

159

 

 

 

877

 

 

526

 

Total Interest Income

 

154,918

 

 

139,562

 

 

134,263

 

 

 

425,053

 

 

394,407

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

10,296

 

 

3,535

 

 

3,837

 

 

 

16,184

 

 

12,318

 

Securities Sold Under Agreements to Repurchase

 

2,745

 

 

2,794

 

 

3,423

 

 

 

8,311

 

 

10,426

 

Funds Purchased

 

40

 

 

57

 

 

-

 

 

 

99

 

 

1

 

Short-Term Borrowings

 

-

 

 

92

 

 

-

 

 

 

92

 

 

-

 

Other Debt

 

182

 

 

182

 

 

184

 

 

 

547

 

 

760

 

Total Interest Expense

 

13,263

 

 

6,660

 

 

7,444

 

 

 

25,233

 

 

23,505

 

Net Interest Income

 

141,655

 

 

132,902

 

 

126,819

 

 

 

399,820

 

 

370,902

 

Provision for Credit Losses

 

-

 

 

(2,500

)

 

(10,400

)

 

 

(8,000

)

 

(40,800

)

Net Interest Income After Provision for Credit Losses

 

141,655

 

 

135,402

 

 

137,219

 

 

 

407,820

 

 

411,702

 

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust and Asset Management

 

10,418

 

 

11,457

 

 

11,415

 

 

 

33,151

 

 

34,375

 

Mortgage Banking

 

1,002

 

 

1,247

 

 

3,136

 

 

 

4,989

 

 

12,056

 

Service Charges on Deposit Accounts

 

7,526

 

 

7,309

 

 

6,510

 

 

 

22,107

 

 

18,703

 

Fees, Exchange, and Other Service Charges

 

13,863

 

 

14,193

 

 

13,604

 

 

 

41,008

 

 

41,018

 

Investment Securities Losses, Net

 

(2,147

)

 

(1,295

)

 

(1,259

)

 

 

(4,987

)

 

(39

)

Annuity and Insurance

 

1,034

 

 

870

 

 

735

 

 

 

2,695

 

 

2,348

 

Bank-Owned Life Insurance

 

2,486

 

 

2,658

 

 

1,897

 

 

 

7,493

 

 

5,877

 

Other

 

(3,522

)

 

5,719

 

 

5,340

 

 

 

9,913

 

 

14,441

 

Total Noninterest Income

 

30,660

 

 

42,158

 

 

41,378

 

 

 

116,369

 

 

128,779

 

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and Benefits

 

59,938

 

 

57,769

 

 

56,447

 

 

 

177,631

 

 

168,859

 

Net Occupancy

 

10,186

 

 

9,930

 

 

3,079

 

 

 

29,942

 

 

17,216

 

Net Equipment

 

9,736

 

 

9,543

 

 

8,924

 

 

 

28,432

 

 

26,598

 

Data Processing

 

4,616

 

 

4,607

 

 

4,722

 

 

 

13,783

 

 

15,601

 

Professional Fees

 

3,799

 

 

3,542

 

 

2,948

 

 

 

10,599

 

 

9,468

 

FDIC Insurance

 

1,680

 

 

1,590

 

 

1,594

 

 

 

4,772

 

 

4,917

 

Other

 

15,794

 

 

15,958

 

 

18,805

 

 

 

47,403

 

 

49,252

 

Total Noninterest Expense

 

105,749

 

 

102,939

 

 

96,519

 

 

 

312,562

 

 

291,911

 

Income Before Provision for Income Taxes

 

66,566

 

 

74,621

 

 

82,078

 

 

 

211,627

 

 

248,570

 

Provision for Income Taxes

 

13,765

 

 

17,759

 

 

20,025

 

 

 

47,130

 

 

59,035

 

Net Income

$

52,801

 

$

56,862

 

$

62,053

 

 

$

164,497

 

$

189,535

 

Preferred Stock Dividends

 

1,969

 

 

1,969

 

 

1,006

 

 

 

5,908

 

 

1,006

 

Net Income Available to Common Shareholders

$

50,832

 

$

54,893

 

$

61,047

 

 

$

158,589

 

$

188,529

 

Basic Earnings Per Common Share

$

1.28

 

$

1.38

 

$

1.53

 

 

$

4.00

 

$

4.73

 

Diluted Earnings Per Common Share

$

1.28

 

$

1.38

 

$

1.52

 

 

$

3.98

 

$

4.70

 

Dividends Declared Per Common Share

$

0.70

 

$

0.70

 

$

0.70

 

 

$

2.10

 

$

2.04

 

Basic Weighted Average Common Shares

 

39,567,047

 

 

39,693,593

 

 

39,881,437

 

 

 

39,670,409

 

 

39,870,450

 

Diluted Weighted Average Common Shares

 

39,758,209

 

 

39,842,608

 

 

40,080,919

 

 

 

39,848,795

 

 

40,088,899

 

 

 


 

 

 

Bank of Hawaii Corporation and Subsidiaries

 

 

 

 

 

 

 

 

Consolidated Statements of Comprehensive Income (Loss)

 

 

 

 

 

Table 4

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

June 30,

 

September 30,

 

 

September 30,

 

(dollars in thousands)

2022

 

2022

 

2021

 

 

2022

 

2021

 

Net Income

$

52,801

 

$

56,862

 

$

62,053

 

 

$

164,497

 

$

189,535

 

Other Comprehensive Loss, Net of Tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Unrealized Losses on Investment Securities

 

(79,600

)

 

(122,647

)

 

(7,541

)

 

 

(382,371

)

 

(57,714

)

Defined Benefit Plans

 

354

 

 

352

 

 

441

 

 

 

1,059

 

 

1,324

 

Other Comprehensive Loss

 

(79,246

)

 

(122,295

)

 

(7,100

)

 

 

(381,312

)

 

(56,390

)

Comprehensive Income (Loss)

$

(26,445

)

$

(65,433

)

$

54,953

 

 

$

(216,815

)

$

133,145

 

 

 


 

 

 

Bank of Hawaii Corporation and Subsidiaries

 

 

 

 

 

 

 

Consolidated Statements of Condition

 

 

 

 

Table 5

 

 

September 30,

 

June 30,

 

December 31,

 

September 30,

 

(dollars in thousands)

2022

 

2022

 

2021

 

2021

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits in Other Banks

$

5,429

 

$

2,264

 

$

2,571

 

$

2,188

 

Funds Sold

 

402,714

 

 

576,430

 

 

361,536

 

 

422,063

 

Investment Securities

 

 

 

 

 

 

 

 

 

 

 

 

   Available-for-Sale

 

2,424,608

 

 

3,955,476

 

 

4,276,056

 

 

4,353,520

 

   Held-to-Maturity (Fair Value of $4,668,074; $3,823,739; $4,646,619; and $4,895,763)

 

5,461,160

 

 

4,321,693

 

 

4,694,780

 

 

4,899,880

 

Loans Held for Sale

 

418

 

 

4,514

 

 

26,746

 

 

21,965

 

Loans and Leases

 

13,321,606

 

 

12,951,573

 

 

12,259,076

 

 

12,072,750

 

   Allowance for Credit Losses

 

(146,436

)

 

(148,512

)

 

(157,821

)

 

(167,920

)

     Net Loans and Leases

 

13,175,170

 

 

12,803,061

 

 

12,101,255

 

 

11,904,830

 

Total Earning Assets

 

21,469,499

 

 

21,663,438

 

 

21,462,944

 

 

21,604,446

 

Cash and Due from Banks

 

247,506

 

 

260,672

 

 

196,327

 

 

231,711

 

Premises and Equipment, Net

 

208,251

 

 

202,063

 

 

199,393

 

 

199,144

 

Operating Lease Right-of-Use Assets

 

94,613

 

 

91,901

 

 

95,621

 

 

97,007

 

Accrued Interest Receivable

 

50,143

 

 

47,141

 

 

45,242

 

 

46,751

 

Foreclosed Real Estate

 

1,040

 

 

2,332

 

 

2,332

 

 

2,332

 

Mortgage Servicing Rights

 

23,104

 

 

23,540

 

 

22,251

 

 

22,099

 

Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

 

31,517

 

Bank-Owned Life Insurance

 

451,407

 

 

448,925

 

 

344,587

 

 

293,230

 

Other Assets

 

556,960

 

 

461,170

 

 

384,727

 

 

437,146

 

Total Assets

$

23,134,040

 

$

23,232,699

 

$

22,784,941

 

$

22,965,383

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

   Noninterest-Bearing Demand

$

7,300,157

 

$

7,374,055

 

$

7,275,287

 

$

7,111,693

 

   Interest-Bearing Demand

 

4,399,625

 

 

4,339,520

 

 

4,628,567

 

 

4,768,725

 

   Savings

 

7,954,006

 

 

8,054,899

 

 

7,456,165

 

 

7,540,345

 

   Time

 

1,234,985

 

 

1,257,207

 

 

1,000,089

 

 

1,072,915

 

Total Deposits

 

20,888,773

 

 

21,025,681

 

 

20,360,108

 

 

20,493,678

 

Securities Sold Under Agreements to Repurchase

 

425,490

 

 

425,490

 

 

450,490

 

 

450,490

 

Other Debt

 

10,319

 

 

10,343

 

 

10,391

 

 

10,414

 

Operating Lease Liabilities

 

102,705

 

 

99,722

 

 

103,210

 

 

104,452

 

Retirement Benefits Payable

 

37,053

 

 

37,532

 

 

38,494

 

 

49,802

 

Accrued Interest Payable

 

3,405

 

 

2,545

 

 

2,499

 

 

3,415

 

Taxes Payable

 

13,527

 

 

10,607

 

 

11,901

 

 

9,815

 

Other Liabilities

 

370,384

 

 

272,033

 

 

196,237

 

 

246,208

 

Total Liabilities

 

21,851,656

 

 

21,883,953

 

 

21,173,330

 

 

21,368,274

 

Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock ($.01 par value; authorized 180,000 shares;

 

 

 

 

 

 

 

 

 

 

 

 

     issued / outstanding: September 30, 2022; June 30, 2022; December 31, 2021;

 

180,000

 

 

180,000

 

 

180,000

 

 

180,000

 

     and September 30, 2021 - 180,000)

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock ($.01 par value; authorized 500,000,000 shares;

 

 

 

 

 

 

 

 

 

 

 

 

     issued / outstanding: September 30, 2022 - 58,728,796 / 40,011,473;

 

 

 

 

 

 

 

 

 

 

 

 

     June 30, 2022 - 58,727,909 / 40,182,659; December 31, 2021 - 58,554,669 / 40,253,193;

 

582

 

 

582

 

 

581

 

 

580

 

          and September 30, 2021 - 58,559,089 / 40,305,801)

 

 

 

 

 

 

 

 

 

 

 

 

Capital Surplus

 

615,985

 

 

611,694

 

 

602,508

 

 

598,341

 

Accumulated Other Comprehensive Loss

 

(447,694

)

 

(368,448

)

 

(66,382

)

 

(48,568

)

Retained Earnings

 

2,024,641

 

 

2,002,005

 

 

1,950,375

 

 

1,916,861

 

Treasury Stock, at Cost (Shares: September 30, 2022 - 18,717,323; June 30, 2022 - 18,545,250;

 

 

 

 

 

 

 

 

 

 

 

 

     December 31, 2021 - 18,301,476; and September 30, 2021 - 18,253,288)

 

(1,091,130

)

 

(1,077,087

)

 

(1,055,471

)

 

(1,050,105

)

Total Shareholders' Equity

 

1,282,384

 

 

1,348,746

 

 

1,611,611

 

 

1,597,109

 

Total Liabilities and Shareholders' Equity

$

23,134,040

 

$

23,232,699

 

$

22,784,941

 

$

22,965,383

 

 

 

 

 


 

 

Bank of Hawaii Corporation and Subsidiaries

 

 

 

 

 

 

 

Consolidated Statements of Shareholders' Equity

 

 

 

 

Table 6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compre-

 

 

 

 

 

 

 

 

 

 

 

Preferred

 

 

 

 

Common

 

 

 

 

 

 

 

hensive

 

 

 

 

 

 

 

 

 

 

 

Shares

 

Preferred

 

Shares

 

Common

 

Capital

 

Income

 

Retained

 

Treasury

 

 

 

 

(dollars in thousands)

Outstanding

 

Stock

 

Outstanding

 

Stock

 

Surplus

 

(Loss)

 

Earnings

 

Stock

 

Total

 

Balance as of December 31, 2021

 

180,000

 

$

180,000

 

 

40,253,193

 

$

581

 

$

602,508

 

$

(66,382

)

$

1,950,375

 

$

(1,055,471

)

$

1,611,611

 

Net Income

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

164,497

 

 

-

 

 

164,497

 

Other Comprehensive Loss

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(381,312

)

 

-

 

 

-

 

 

(381,312

)

Share-Based Compensation

 

-

 

 

-

 

 

-

 

 

-

 

 

11,947

 

 

-

 

 

-

 

 

-

 

 

11,947

 

Common Stock Issued under Purchase and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Equity Compensation Plans

 

-

 

 

-

 

 

247,966

 

 

1

 

 

1,530

 

 

-

 

 

256

 

 

3,889

 

 

5,676

 

Common Stock Repurchased

 

-

 

 

-

 

 

(489,686

)

 

-

 

 

-

 

 

-

 

 

-

 

 

(39,548

)

 

(39,548

)

Cash Dividends Declared Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     ($2.10 per share)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(84,579

)

 

-

 

 

(84,579

)

Cash Dividends Declared Preferred Stock

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(5,908

)

 

-

 

 

(5,908

)

Balance as of September 30, 2022

 

180,000

 

$

180,000

 

 

40,011,473

 

$

582

 

$

615,985

 

$

(447,694

)

$

2,024,641

 

$

(1,091,130

)

$

1,282,384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2020

 

-

 

$

-

 

 

40,119,312

 

$

580

 

$

591,360

 

$

7,822

 

$

1,811,979

 

$

(1,037,234

)

$

1,374,507

 

Net Income

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

189,535

 

 

-

 

 

189,535

 

Other Comprehensive Loss

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(56,390

)

 

-

 

 

-

 

 

(56,390

)

Share-Based Compensation

 

-

 

 

-

 

 

-

 

 

-

 

 

9,658

 

 

-

 

 

-

 

 

-

 

 

9,658

 

Preferred Stock Issued, Net

 

180,000

 

 

180,000

 

 

-

 

 

-

 

 

(4,513

)

 

-

 

 

-

 

 

-

 

 

175,487

 

Common Stock Issued under Purchase and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Equity Compensation Plans

 

-

 

 

-

 

 

466,265

 

 

-

 

 

1,836

 

 

-

 

 

(1,218

)

 

10,541

 

 

11,159

 

Common Stock Repurchased

 

-

 

 

-

 

 

(279,776

)

 

-

 

 

-

 

 

-

 

 

-

 

 

(23,412

)

 

(23,412

)

Cash Dividends Declared Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     ($2.04 per share)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(82,429

)

 

-

 

 

(82,429

)

Cash Dividends Declared Preferred Stock

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(1,006

)

 

-

 

 

(1,006

)

Balance as of September 30, 2021

 

180,000

 

$

180,000

 

 

40,305,801

 

$

580

 

$

598,341

 

$

(48,568

)

$

1,916,861

 

$

(1,050,105

)

$

1,597,109

 

 

 

 

 


 

 

Bank of Hawaii Corporation and Subsidiaries

 

 

 

 

 

 

 

 

Average Balances and Interest Rates - Taxable-Equivalent Basis 1

 

Table 7a

 

Three Months Ended

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

September 30, 2022

 

 

June 30, 2022

 

 

September 30, 2021

 

 

 

Average

 

Income/

 

Yield/

 

 

Average

 

Income/

 

Yield/

 

 

Average

 

Income/

 

Yield/

 

 

(dollars in millions)

Balance

 

Expense 2

 

Rate

 

 

Balance

 

Expense 2

 

Rate

 

 

Balance

 

Expense 2

 

Rate

 

 

Earning Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits in Other Banks

$

2.9

 

$

-

 

 

1.32

 

%

$

3.5

 

$

-

 

 

0.59

 

%

$

3.2

 

$

-

 

 

0.23

 

%

Funds Sold

 

411.8

 

 

2.3

 

 

2.22

 

 

 

273.5

 

 

0.7

 

 

1.04

 

 

 

999.5

 

 

0.4

 

 

0.15

 

 

Investment Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Taxable

 

3,481.9

 

 

17.0

 

 

1.95

 

 

 

4,123.1

 

 

18.0

 

 

1.74

 

 

 

4,454.9

 

 

16.3

 

 

1.46

 

 

     Non-Taxable

 

2.5

 

 

-

 

 

1.56

 

 

 

2.9

 

 

-

 

 

1.99

 

 

 

10.1

 

 

0.1

 

 

4.34

 

 

Held-to-Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Taxable

 

4,645.7

 

 

20.1

 

 

1.73

 

 

 

4,377.0

 

 

18.7

 

 

1.71

 

 

 

4,294.6

 

 

16.5

 

 

1.53

 

 

     Non-Taxable

 

35.6

 

 

0.2

 

 

2.10

 

 

 

35.7

 

 

0.2

 

 

2.10

 

 

 

64.8

 

 

0.4

 

 

2.37

 

 

Total Investment Securities

 

8,165.7

 

 

37.3

 

 

1.82

 

 

 

8,538.7

 

 

36.9

 

 

1.73

 

 

 

8,824.4

 

 

33.3

 

 

1.51

 

 

Loans Held for Sale

 

4.3

 

 

0.1

 

 

4.46

 

 

 

6.3

 

 

0.1

 

 

4.06

 

 

 

24.6

 

 

0.2

 

 

2.80

 

 

Loans and Leases 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

1,353.8

 

 

12.5

 

 

3.66

 

 

 

1,330.0

 

 

9.9

 

 

2.99

 

 

 

1,252.8

 

 

9.1

 

 

2.88

 

 

Paycheck Protection Program

 

28.0

 

 

0.2

 

 

3.02

 

 

 

38.7

 

 

0.5

 

 

5.26

 

 

 

392.0

 

 

7.9

 

 

7.98

 

 

Commercial Mortgage

 

3,530.9

 

 

33.3

 

 

3.74

 

 

 

3,357.2

 

 

26.2

 

 

3.13

 

 

 

2,952.7

 

 

21.9

 

 

2.94

 

 

Construction

 

233.0

 

 

2.8

 

 

4.81

 

 

 

222.6

 

 

2.4

 

 

4.39

 

 

 

289.9

 

 

2.5

 

 

3.38

 

 

Commercial Lease Financing

 

89.1

 

 

0.4

 

 

1.58

 

 

 

94.2

 

 

0.3

 

 

1.44

 

 

 

109.3

 

 

0.4

 

 

1.58

 

 

Residential Mortgage

 

4,526.6

 

 

37.4

 

 

3.30

 

 

 

4,445.7

 

 

36.4

 

 

3.26

 

 

 

4,253.2

 

 

34.8

 

 

3.27

 

 

Home Equity

 

2,144.8

 

 

16.4

 

 

3.04

 

 

 

2,032.9

 

 

14.4

 

 

2.85

 

 

 

1,621.4

 

 

12.2

 

 

2.97

 

 

Automobile

 

795.5

 

 

6.4

 

 

3.19

 

 

 

759.1

 

 

6.1

 

 

3.20

 

 

 

718.7

 

 

6.2

 

 

3.41

 

 

Other 4

 

425.0

 

 

5.9

 

 

5.48

 

 

 

420.4

 

 

5.6

 

 

5.38

 

 

 

368.3

 

 

5.7

 

 

6.16

 

 

Total Loans and Leases

 

13,126.7

 

 

115.3

 

 

3.49

 

 

 

12,700.8

 

 

101.8

 

 

3.21

 

 

 

11,958.3

 

 

100.7

 

 

3.35

 

 

Other

 

36.9

 

 

0.3

 

 

3.49

 

 

 

38.2

 

 

0.3

 

 

3.70

 

 

 

31.5

 

 

0.2

 

 

2.02

 

 

Total Earning Assets

 

21,748.3

 

 

155.3

 

 

2.84

 

 

 

21,561.0

 

 

139.8

 

 

2.60

 

 

 

21,841.5

 

 

134.8

 

 

2.45

 

 

Cash and Due from Banks

 

233.5

 

 

 

 

 

 

 

 

 

238.4

 

 

 

 

 

 

 

 

 

252.2

 

 

 

 

 

 

 

 

Other Assets

 

1,154.0

 

 

 

 

 

 

 

 

 

1,091.9

 

 

 

 

 

 

 

 

 

899.3

 

 

 

 

 

 

 

 

Total Assets

$

23,135.8

 

 

 

 

 

 

 

 

$

22,891.3

 

 

 

 

 

 

 

 

$

22,993.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand

$

4,286.0

 

 

1.4

 

 

0.13

 

 

$

4,442.2

 

 

0.7

 

 

0.06

 

 

$

4,707.1

 

 

0.7

 

 

0.06

 

 

Savings

 

7,962.0

 

 

6.6

 

 

0.33

 

 

 

7,692.8

 

 

1.9

 

 

0.10

 

 

 

7,687.0

 

 

1.8

 

 

0.09

 

 

Time

 

1,146.9

 

 

2.3

 

 

0.79

 

 

 

950.4

 

 

0.9

 

 

0.40

 

 

 

1,267.0

 

 

1.4

 

 

0.44

 

 

Total Interest-Bearing Deposits

 

13,394.9

 

 

10.3

 

 

0.30

 

 

 

13,085.4

 

 

3.5

 

 

0.11

 

 

 

13,661.1

 

 

3.9

 

 

0.11

 

 

Short-Term Borrowings

 

4.9

 

 

0.1

 

 

3.17

 

 

 

59.8

 

 

0.1

 

 

0.98

 

 

 

-

 

 

-

 

 

-

 

 

Securities Sold Under Agreements to Repurchase

 

425.5

 

 

2.7

 

 

2.52

 

 

 

447.7

 

 

2.8

 

 

2.47

 

 

 

547.8

 

 

3.4

 

 

2.45

 

 

Other Debt

 

10.3

 

 

0.2

 

 

7.05

 

 

 

10.4

 

 

0.3

 

 

7.05

 

 

 

10.4

 

 

0.2

 

 

7.04

 

 

Total Interest-Bearing Liabilities

 

13,835.6

 

 

13.3

 

 

0.38

 

 

 

13,603.3

 

 

6.7

 

 

0.20

 

 

 

14,219.3

 

 

7.5

 

 

0.21

 

 

Net Interest Income

 

 

 

$

142.0

 

 

 

 

 

 

 

 

$

133.1

 

 

 

 

 

 

 

 

$

127.3

 

 

 

 

 

Interest Rate Spread

 

 

 

 

 

 

 

2.46

 

%

 

 

 

 

 

 

 

2.40

 

%

 

 

 

 

 

 

 

2.24

 

%

Net Interest Margin

 

 

 

 

 

 

 

2.60

 

%

 

 

 

 

 

 

 

2.47

 

%

 

 

 

 

 

 

 

2.32

 

%

Noninterest-Bearing Demand Deposits

 

7,468.8

 

 

 

 

 

 

 

 

 

7,484.0

 

 

 

 

 

 

 

 

 

6,812.7

 

 

 

 

 

 

 

 

Other Liabilities

 

463.5

 

 

 

 

 

 

 

 

 

413.3

 

 

 

 

 

 

 

 

 

362.9

 

 

 

 

 

 

 

 

Shareholders' Equity

 

1,367.9

 

 

 

 

 

 

 

 

 

1,390.7

 

 

 

 

 

 

 

 

 

1,598.1

 

 

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

$

23,135.8

 

 

 

 

 

 

 

 

$

22,891.3

 

 

 

 

 

 

 

 

$

22,993.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.

2  Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $343,000, $221,000, and $315,000

    for the three months ended September 30, 2022, June 30, 2022, and September 30, 2021, respectively.

3  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.

4  Comprised of other consumer revolving credit, installment, and consumer lease financing.

 

 

 

 


 

 

 

Bank of Hawaii Corporation and Subsidiaries

 

 

 

 

 

 

 

 

 

 

Average Balances and Interest Rates - Taxable-Equivalent Basis 1

 

Table 7b

 

Nine Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2022

 

 

September 30, 2021

 

 

 

Average

 

Income/

 

Yield/

 

 

Average

 

Income/

 

Yield/

 

 

(dollars in millions)

Balance

 

Expense 2

 

Rate

 

 

Balance

 

Expense 2

 

Rate

 

 

Earning Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits in Other Banks

$

3.3

 

$

-

 

 

0.76

 

%

$

2.9

 

$

-

 

 

0.44

 

%

Funds Sold

 

308.6

 

 

3.2

 

 

1.36

 

 

 

833.7

 

 

0.8

 

 

0.12

 

 

Investment Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Taxable

 

3,998.2

 

 

52.0

 

 

1.74

 

 

 

4,252.9

 

 

48.4

 

 

1.52

 

 

     Non-Taxable

 

2.8

 

 

-

 

 

1.84

 

 

 

11.5

 

 

0.4

 

 

4.29

 

 

Held-to-Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Taxable

 

4,530.4

 

 

57.4

 

 

1.69

 

 

 

3,728.9

 

 

42.9

 

 

1.53

 

 

     Non-Taxable

 

35.7

 

 

0.6

 

 

2.10

 

 

 

48.2

 

 

0.9

 

 

2.46

 

 

Total Investment Securities

 

8,567.1

 

 

110.0

 

 

1.71

 

 

 

8,041.5

 

 

92.6

 

 

1.54

 

 

Loans Held for Sale

 

8.1

 

 

0.2

 

 

3.43

 

 

 

25.5

 

 

0.5

 

 

2.81

 

 

Loans and Leases 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

1,339.0

 

 

31.4

 

 

3.13

 

 

 

1,281.0

 

 

28.1

 

 

2.94

 

 

Paycheck Protection Program

 

51.7

 

 

2.5

 

 

6.59

 

 

 

545.9

 

 

20.0

 

 

4.90

 

 

Commercial Mortgage

 

3,350.3

 

 

81.3

 

 

3.25

 

 

 

2,894.5

 

 

64.5

 

 

2.98

 

 

Construction

 

227.7

 

 

7.3

 

 

4.30

 

 

 

280.0

 

 

7.3

 

 

3.51

 

 

Commercial Lease Financing

 

94.0

 

 

1.0

 

 

1.49

 

 

 

107.1

 

 

1.2

 

 

1.52

 

 

Residential Mortgage

 

4,439.1

 

 

108.6

 

 

3.26

 

 

 

4,211.8

 

 

106.2

 

 

3.36

 

 

Home Equity

 

2,026.5

 

 

44.1

 

 

2.91

 

 

 

1,596.4

 

 

36.9

 

 

3.09

 

 

Automobile

 

764.2

 

 

18.4

 

 

3.21

 

 

 

712.5

 

 

18.4

 

 

3.46

 

 

Other 4

 

416.5

 

 

17.0

 

 

5.44

 

 

 

373.2

 

 

18.1

 

 

6.48

 

 

Total Loans and Leases

 

12,709.0

 

 

311.6

 

 

3.27

 

 

 

12,002.4

 

 

300.7

 

 

3.35

 

 

Other

 

37.2

 

 

0.9

 

 

3.14

 

 

 

32.4

 

 

0.5

 

 

2.17

 

 

Total Earning Assets

 

21,633.3

 

 

425.9

 

 

2.63

 

 

 

20,938.4

 

 

395.1

 

 

2.52

 

 

Cash and Due from Banks

 

235.0

 

 

 

 

 

 

 

 

 

259.6

 

 

 

 

 

 

 

 

Other Assets

 

1,090.9

 

 

 

 

 

 

 

 

 

881.2

 

 

 

 

 

 

 

 

Total Assets

$

22,959.2

 

 

 

 

 

 

 

 

$

22,079.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand

$

4,459.9

 

 

2.6

 

 

0.08

 

 

$

4,450.6

 

 

2.0

 

 

0.06

 

 

Savings

 

7,733.3

 

 

9.5

 

 

0.16

 

 

 

7,414.6

 

 

5.0

 

 

0.09

 

 

Time

 

1,023.6

 

 

4.1

 

 

0.53

 

 

 

1,437.1

 

 

5.3

 

 

0.49

 

 

Total Interest-Bearing Deposits

 

13,216.8

 

 

16.2

 

 

0.16

 

 

 

13,302.3

 

 

12.3

 

 

0.12

 

 

Short-Term Borrowings

 

23.9

 

 

0.2

 

 

1.05

 

 

 

0.8

 

 

-

 

 

0.09

 

 

Securities Sold Under Agreements to Repurchase

 

441.1

 

 

8.3

 

 

2.48

 

 

 

572.7

 

 

10.4

 

 

2.40

 

 

Other Debt

 

10.3

 

 

0.6

 

 

7.05

 

 

 

33.5

 

 

0.8

 

 

3.03

 

 

Total Interest-Bearing Liabilities

 

13,692.1

 

 

25.3

 

 

0.25

 

 

 

13,909.3

 

 

23.5

 

 

0.22

 

 

Net Interest Income

 

 

 

$

400.6

 

 

 

 

 

 

 

 

$

371.6

 

 

 

 

 

Interest Rate Spread

 

 

 

 

 

 

 

2.38

 

%

 

 

 

 

 

 

 

2.30

 

%

Net Interest Margin

 

 

 

 

 

 

 

2.47

 

%

 

 

 

 

 

 

 

2.37

 

%

Noninterest-Bearing Demand Deposits

 

7,404.5

 

 

 

 

 

 

 

 

 

6,316.8

 

 

 

 

 

 

 

 

Other Liabilities

 

420.9

 

 

 

 

 

 

 

 

 

389.5

 

 

 

 

 

 

 

 

Shareholders' Equity

 

1,441.7

 

 

 

 

 

 

 

 

 

1,463.6

 

 

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

$

22,959.2

 

 

 

 

 

 

 

 

$

22,079.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.

2  Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $818,000 and $836,000

   for nine months ended September 30, 2022 and September 30, 2021, respectively.

3  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.

4  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 8a

 

 

Three Months Ended September 30, 2022

 

 

Compared to June 30, 2022

 

(dollars in millions)

Volume 1

 

Rate 1

 

Total

 

Change in Interest Income:

 

 

 

 

 

 

 

 

 

Funds Sold

$

0.5

 

$

1.1

 

$

1.6

 

Investment Securities

 

 

 

 

 

 

 

 

 

   Available-for-Sale

 

 

 

 

 

 

 

 

 

      Taxable

 

(3.0

)

 

2.0

 

 

(1.0

)

   Held-to-Maturity

 

 

 

 

 

 

 

 

 

      Taxable

 

1.2

 

 

0.2

 

 

1.4

 

Total Investment Securities

 

(1.8

)

 

2.2

 

 

0.4

 

Loans and Leases

 

 

 

 

 

 

 

 

 

   Commercial and Industrial

 

0.2

 

 

2.4

 

 

2.6

 

   Paycheck Protection Program

 

(0.1

)

 

(0.2

)

 

(0.3

)

   Commercial Mortgage

 

1.5

 

 

5.6

 

 

7.1

 

   Construction

 

0.1

 

 

0.3

 

 

0.4

 

   Commercial Lease Financing

 

0.1

 

 

-

 

 

0.1

 

   Residential Mortgage

 

0.6

 

 

0.4

 

 

1.0

 

   Home Equity

 

0.9

 

 

1.1

 

 

2.0

 

   Automobile

 

0.3

 

 

-

 

 

0.3

 

   Other 2

 

0.1

 

 

0.2

 

 

0.3

 

Total Loans and Leases

 

3.7

 

 

9.8

 

 

13.5

 

Total Change in Interest Income

 

2.4

 

 

13.1

 

 

15.5

 

 

 

 

 

 

 

 

 

 

 

Change in Interest Expense:

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

 

 

 

 

 

 

 

 

 

   Demand

 

-

 

 

0.7

 

 

0.7

 

   Savings

 

0.1

 

 

4.6

 

 

4.7

 

   Time

 

0.2

 

 

1.2

 

 

1.4

 

Total Interest-Bearing Deposits

 

0.3

 

 

6.5

 

 

6.8

 

Short-Term Borrowings

 

(0.2

)

 

0.2

 

 

-

 

Securities Sold Under Agreements to Repurchase

 

(0.2

)

 

0.1

 

 

(0.1

)

Other Debt

 

-

 

 

(0.1

)

 

(0.1

)

Total Change in Interest Expense

 

(0.1

)

 

6.7

 

 

6.6

 

 

 

 

 

 

 

 

 

 

 

Change in Net Interest Income

$

2.5

 

$

6.4

 

$

8.9

 

 

 

 

 

 

 

 

 

 

 

1  The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

 

2  Comprised of other consumer revolving credit, installment, and consumer lease financing.

 

 


 

 

 

Bank of Hawaii Corporation and Subsidiaries

 

 

 

 

Analysis of Change in Net Interest Income - Taxable-Equivalent Basis

 

Table 8b

 

 

Three Months Ended September 30, 2022

 

 

Compared to September 30, 2021

 

(dollars in millions)

Volume 1

 

Rate 1

 

Total

 

Change in Interest Income:

 

 

 

 

 

 

 

 

 

Funds Sold

$

(0.4

)

$

2.3

 

$

1.9

 

Investment Securities

 

 

 

 

 

 

 

 

 

   Available-for-Sale

 

 

 

 

 

 

 

 

 

      Taxable

 

(4.0

)

 

4.7

 

 

0.7

 

      Non-Taxable

 

(0.1

)

 

-

 

 

(0.1

)

   Held-to-Maturity

 

 

 

 

 

 

 

 

 

      Taxable

 

1.4

 

 

2.2

 

 

3.6

 

      Non-Taxable

 

(0.2

)

 

-

 

 

(0.2

)

Total Investment Securities

 

(2.9

)

 

6.9

 

 

4.0

 

Loans Held for Sale

 

(0.2

)

 

0.1

 

 

(0.1

)

Loans and Leases

 

 

 

 

 

 

 

 

 

   Commercial and Industrial

 

0.8

 

 

2.6

 

 

3.4

 

   Paycheck Protection Program

 

(4.6

)

 

(3.1

)

 

(7.7

)

   Commercial Mortgage

 

4.8

 

 

6.6

 

 

11.4

 

   Construction

 

(0.6

)

 

0.9

 

 

0.3

 

   Commercial Lease Financing

 

(0.1

)

 

0.1

 

 

-

 

   Residential Mortgage

 

2.3

 

 

0.3

 

 

2.6

 

   Home Equity

 

4.0

 

 

0.2

 

 

4.2

 

   Automobile

 

0.6

 

 

(0.4

)

 

0.2

 

   Other 2

 

0.9

 

 

(0.7

)

 

0.2

 

Total Loans and Leases

 

8.1

 

 

6.5

 

 

14.6

 

Other

 

-

 

 

0.1

 

 

0.1

 

Total Change in Interest Income

 

4.6

 

 

15.9

 

 

20.5

 

 

 

 

 

 

 

 

 

 

 

Change in Interest Expense:

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

 

 

 

 

 

 

 

 

 

   Demand

 

(0.1

)

 

0.8

 

 

0.7

 

   Savings

 

0.1

 

 

4.7

 

 

4.8

 

   Time

 

(0.1

)

 

1.0

 

 

0.9

 

Total Interest-Bearing Deposits

 

(0.1

)

 

6.5

 

 

6.4

 

Short-Term Borrowings

 

0.1

 

 

-

 

 

0.1

 

Securities Sold Under Agreements to Repurchase

 

(0.8

)

 

0.1

 

 

(0.7

)

Total Change in Interest Expense

 

(0.8

)

 

6.6

 

 

5.8

 

 

 

 

 

 

 

 

 

 

 

Change in Net Interest Income

$

5.4

 

$

9.3

 

$

14.7

 

 

 

 

 

 

 

 

 

 

 

1  The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

 

2  Comprised of other consumer revolving credit, installment, and consumer lease financing.

 

 

 


 

 

 

Bank of Hawaii Corporation and Subsidiaries

 

 

 

 

Analysis of Change in Net Interest Income - Taxable-Equivalent Basis

 

Table 8c

 

 

Nine Months Ended September 30, 2022

 

 

Compared to September 30, 2021

 

(dollars in millions)

Volume 1

 

Rate 1

 

Total

 

Change in Interest Income:

 

 

 

 

 

 

 

 

 

Funds Sold

$

(0.8

)

$

3.2

 

$

2.4

 

Investment Securities

 

 

 

 

 

 

 

 

 

   Available-for-Sale

 

 

 

 

 

 

 

 

 

      Taxable

 

(3.0

)

 

6.6

 

 

3.6

 

      Non-Taxable

 

(0.3

)

 

(0.1

)

 

(0.4

)

   Held-to-Maturity

 

 

 

 

 

 

 

 

 

      Taxable

 

9.9

 

 

4.6

 

 

14.5

 

      Non-Taxable

 

(0.2

)

 

(0.1

)

 

(0.3

)

Total Investment Securities

 

6.4

 

 

11.0

 

 

17.4

 

Loans Held for Sale

 

(0.4

)

 

0.1

 

 

(0.3

)

Loans and Leases

 

 

 

 

 

 

 

 

 

   Commercial and Industrial

 

1.3

 

 

2.0

 

 

3.3

 

   Paycheck Protection Program

 

(22.6

)

 

5.1

 

 

(17.5

)

   Commercial Mortgage

 

10.8

 

 

6.0

 

 

16.8

 

   Construction

 

(1.5

)

 

1.5

 

 

-

 

   Commercial Lease Financing

 

(0.1

)

 

(0.1

)

 

(0.2

)

   Residential Mortgage

 

5.7

 

 

(3.3

)

 

2.4

 

   Home Equity

 

9.4

 

 

(2.2

)

 

7.2

 

   Automobile

 

1.3

 

 

(1.3

)

 

-

 

   Other 2

 

2.0

 

 

(3.1

)

 

(1.1

)

Total Loans and Leases

 

6.3

 

 

4.6

 

 

10.9

 

Other

 

0.1

 

 

0.3

 

 

0.4

 

Total Change in Interest Income

 

11.6

 

 

19.2

 

 

30.8

 

 

 

 

 

 

 

 

 

 

 

Change in Interest Expense:

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

 

 

 

 

 

 

 

 

 

   Demand

 

-

 

 

0.6

 

 

0.6

 

   Savings

 

0.2

 

 

4.3

 

 

4.5

 

   Time

 

(1.6

)

 

0.4

 

 

(1.2

)

Total Interest-Bearing Deposits

 

(1.4

)

 

5.3

 

 

3.9

 

Short-Term Borrowings

 

0.2

 

 

-

 

 

0.2

 

Securities Sold Under Agreements to Repurchase

 

(2.5

)

 

0.4

 

 

(2.1

)

Other Debt

 

(0.8

)

 

0.6

 

 

(0.2

)

Total Change in Interest Expense

 

(4.5

)

 

6.3

 

 

1.8

 

 

 

 

 

 

 

 

 

 

 

Change in Net Interest Income

$

16.1

 

$

12.9

 

$

29.0

 

 

 

 

 

 

 

 

 

 

 

1  The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

 

2  Comprised of other consumer revolving credit, installment, and consumer lease financing.

 

 

 


 

 

 

Bank of Hawaii Corporation and Subsidiaries

 

 

 

 

 

 

 

 

Salaries and Benefits

 

 

 

 

 

 

 

 

Table 9

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

June 30,

 

September 30,

 

 

September 30,

 

(dollars in thousands)

2022

 

2022

 

2021

 

 

2022

 

2021

 

Salaries

$

37,792

 

$

36,721

 

$

34,676

 

 

$

109,445

 

$

99,658

 

Incentive Compensation

 

5,885

 

 

6,073

 

 

4,677

 

 

 

18,069

 

 

15,763

 

Share-Based Compensation

 

3,558

 

 

3,962

 

 

3,335

 

 

 

11,319

 

 

9,093

 

Commission Expense

 

1,005

 

 

1,232

 

 

1,772

 

 

 

3,878

 

 

6,807

 

Retirement and Other Benefits

 

4,448

 

 

4,036

 

 

4,746

 

 

 

13,177

 

 

15,552

 

Payroll Taxes

 

2,826

 

 

3,034

 

 

2,825

 

 

 

10,804

 

 

9,819

 

Medical, Dental, and Life Insurance

 

2,605

 

 

2,591

 

 

3,222

 

 

 

8,430

 

 

8,850

 

Separation Expense

 

1,819

 

 

120

 

 

1,194

 

 

 

2,509

 

 

3,317

 

Total Salaries and Benefits

$

59,938

 

$

57,769

 

$

56,447

 

 

$

177,631

 

$

168,859

 

 


 

 

 

Bank of Hawaii Corporation and Subsidiaries

 

 

 

 

 

 

 

Loan and Lease Portfolio Balances

 

 

 

 

Table 10

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

(dollars in thousands)

2022

 

2022

 

2022

 

2021

 

2021

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

$

1,368,966

 

$

1,323,830

 

$

1,354,757

 

$

1,361,921

 

$

1,325,446

 

Paycheck Protection Program

 

22,955

 

 

31,964

 

 

57,809

 

 

126,779

 

 

268,480

 

Commercial Mortgage

 

3,591,943

 

 

3,464,126

 

 

3,257,689

 

 

3,152,130

 

 

2,994,520

 

Construction

 

236,498

 

 

246,177

 

 

248,363

 

 

220,254

 

 

296,052

 

Lease Financing

 

73,989

 

 

89,535

 

 

98,107

 

 

105,108

 

 

107,526

 

Total Commercial

 

5,294,351

 

 

5,155,632

 

 

5,016,725

 

 

4,966,192

 

 

4,992,024

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

4,585,723

 

 

4,486,571

 

 

4,405,718

 

 

4,309,602

 

 

4,272,540

 

Home Equity

 

2,185,484

 

 

2,101,612

 

 

1,958,285

 

 

1,836,588

 

 

1,680,229

 

Automobile

 

820,640

 

 

775,065

 

 

742,934

 

 

736,565

 

 

727,234

 

Other 1

 

435,408

 

 

432,693

 

 

420,830

 

 

410,129

 

 

400,723

 

Total Consumer

 

8,027,255

 

 

7,795,941

 

 

7,527,767

 

 

7,292,884

 

 

7,080,726

 

Total Loans and Leases

$

13,321,606

 

$

12,951,573

 

$

12,544,492

 

$

12,259,076

 

$

12,072,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

(dollars in thousands)

2022

 

2022

 

2022

 

2021

 

2021

 

Consumer

$

10,507,946

 

$

10,554,121

 

$

10,654,192

 

$

10,438,844

 

$

10,150,199

 

Commercial

 

8,841,781

 

 

8,824,609

 

 

8,818,477

 

 

8,641,932

 

 

8,767,733

 

Public and Other

 

1,539,046

 

 

1,646,951

 

 

1,243,618

 

 

1,279,332

 

 

1,575,746

 

Total Deposits

$

20,888,773

 

$

21,025,681

 

$

20,716,287

 

$

20,360,108

 

$

20,493,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  Comprised of other revolving credit, installment, and lease financing.

 

 

 


 

 

 

Bank of Hawaii Corporation and Subsidiaries

 

 

 

 

Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More

 

Table 11

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

(dollars in thousands)

2022

 

2022

 

2022

 

2021

 

2021

 

Non-Performing Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

$

49

 

$

85

 

$

99

 

$

243

 

$

209

 

Commercial Mortgage

 

3,396

 

 

3,462

 

 

8,065

 

 

8,205

 

 

8,309

 

Total Commercial

 

3,445

 

 

3,547

 

 

8,164

 

 

8,448

 

 

8,518

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

4,945

 

 

5,179

 

 

3,845

 

 

3,305

 

 

4,348

 

Home Equity

 

4,438

 

 

4,435

 

 

5,638

 

 

4,881

 

 

5,422

 

Total Consumer

 

9,383

 

 

9,614

 

 

9,483

 

 

8,186

 

 

9,770

 

Total Non-Accrual Loans and Leases

 

12,828

 

 

13,161

 

 

17,647

 

 

16,634

 

 

18,288

 

Foreclosed Real Estate

 

1,040

 

 

2,332

 

 

2,332

 

 

2,332

 

 

2,332

 

Total Non-Performing Assets

$

13,868

 

$

15,493

 

$

19,979

 

$

18,966

 

$

20,620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing Loans and Leases Past Due 90 Days or More

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

$

-

 

$

-

 

$

22

 

$

-

 

$

-

 

Total Commercial

 

-

 

 

-

 

 

22

 

 

-

 

 

-

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

3,279

 

 

2,638

 

 

4,113

 

 

3,159

 

 

4,776

 

Home Equity

 

1,061

 

 

2,029

 

 

2,722

 

 

3,456

 

 

2,946

 

Automobile

 

467

 

 

359

 

 

504

 

 

729

 

 

395

 

Other 1

 

513

 

 

508

 

 

649

 

 

426

 

 

593

 

Total Consumer

 

5,320

 

 

5,534

 

 

7,988

 

 

7,770

 

 

8,710

 

Total Accruing Loans and Leases Past Due 90 Days or More

$

5,320

 

$

5,534

 

$

8,010

 

$

7,770

 

$

8,710

 

Restructured Loans on Accrual Status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     and Not Past Due 90 Days or More

$

44,641

 

$

46,024

 

$

54,136

 

$

60,519

 

$

62,787

 

Total Loans and Leases

$

13,321,606

 

$

12,951,573

 

$

12,544,492

 

$

12,259,076

 

$

12,072,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

0.10

%

 

0.10

%

 

0.14

%

 

0.14

%

 

0.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Non-Performing Assets to Total Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and Foreclosed Real Estate

 

0.10

%

 

0.12

%

 

0.16

%

 

0.15

%

 

0.17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Non-Performing Assets to Total Assets

 

0.06

%

 

0.06

%

 

0.07

%

 

0.07

%

 

0.08

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Commercial Non-Performing Assets to Total Commercial Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and Leases and Commercial Foreclosed Real Estate

 

0.07

%

 

0.07

%

 

0.16

%

 

0.17

%

 

0.17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Consumer Non-Performing Assets to Total Consumer Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and Leases and Consumer Foreclosed Real Estate

 

0.13

%

 

0.15

%

 

0.16

%

 

0.14

%

 

0.17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Non-Performing Assets and Accruing Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due 90 Days or More to Total Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and Foreclosed Real Estate

 

0.14

%

 

0.16

%

 

0.22

%

 

0.22

%

 

0.24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter to Quarter Changes in Non-Performing Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at Beginning of Quarter

$

15,493

 

$

19,979

 

$

18,966

 

$

20,620

 

$

18,974

 

Additions

 

489

 

 

2,293

 

 

2,243

 

 

357

 

 

3,171

 

Reductions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payments

 

(706

)

 

(5,511

)

 

(1,230

)

 

(972

)

 

(889

)

Return to Accrual Status

 

(116

)

 

(1,267

)

 

-

 

 

(1,038

)

 

(606

)

Sales of Foreclosed Real Estate

 

(1,292

)

 

-

 

 

-

 

 

-

 

 

-

 

Charge-offs/Write-downs

 

-

 

 

(1

)

 

-

 

 

(1

)

 

(30

)

Total Reductions

 

(2,114

)

 

(6,779

)

 

(1,230

)

 

(2,011

)

 

(1,525

)

Balance at End of Quarter

$

13,868

 

$

15,493

 

$

19,979

 

$

18,966

 

$

20,620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  Comprised of other revolving credit, installment, and lease financing.

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

Bank of Hawaii Corporation and Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

Reserve for Credit Losses

 

 

 

 

 

 

 

 

Table 12

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

June 30,

 

September 30,

 

 

September 30,

 

(dollars in thousands)

2022

 

2022

 

2021

 

 

2022

 

2021

 

Balance at Beginning of Period

$

154,098

 

$

157,264

 

$

186,371

 

 

$

164,297

 

$

221,303

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and Leases Charged-Off

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

(147

)

 

(233

)

 

(196

)

 

 

(729

)

 

(900

)

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

-

 

 

(80

)

 

(197

)

 

 

(80

)

 

(316

)

Home Equity

 

-

 

 

(22

)

 

(289

)

 

 

(90

)

 

(412

)

Automobile

 

(794

)

 

(1,157

)

 

(576

)

 

 

(3,481

)

 

(3,894

)

Other 1

 

(1,924

)

 

(1,854

)

 

(2,187

)

 

 

(5,739

)

 

(8,523

)

Total Loans and Leases Charged-Off

 

(2,865

)

 

(3,346

)

 

(3,445

)

 

 

(10,119

)

 

(14,045

)

Recoveries on Loans and Leases Previously Charged-Off

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

45

 

 

51

 

 

118

 

 

 

465

 

 

374

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

156

 

 

920

 

 

173

 

 

 

1,130

 

 

1,609

 

Home Equity

 

367

 

 

416

 

 

216

 

 

 

1,298

 

 

1,276

 

Automobile

 

441

 

 

684

 

 

943

 

 

 

1,864

 

 

3,034

 

Other 1

 

709

 

 

644

 

 

802

 

 

 

2,098

 

 

2,459

 

Total Recoveries on Loans and Leases Previously Charged-Off

 

1,718

 

 

2,715

 

 

2,252

 

 

 

6,855

 

 

8,752

 

Net Charged-Off - Loans and Leases

 

(1,147

)

 

(631

)

 

(1,193

)

 

 

(3,264

)

 

(5,293

)

Net Charged-Off - Accrued Interest Receivable

 

-

 

 

-

 

 

(70

)

 

 

(47

)

 

(502

)

Provision for Credit Losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and Leases

 

(929

)

 

(2,885

)

 

(11,272

)

 

 

(8,121

)

 

(43,039

)

Accrued Interest Receivable

 

-

 

 

-

 

 

(703

)

 

 

(367

)

 

(1,531

)

Unfunded Commitments

 

905

 

 

350

 

 

1,575

 

 

 

429

 

 

3,770

 

Balance at End of Period

$

152,927

 

$

154,098

 

$

174,708

 

 

$

152,927

 

$

174,708

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Components

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses - Loans and Leases

$

146,436

 

$

148,512

 

$

167,920

 

 

$

146,436

 

$

167,920

 

Allowance for Credit Losses - Accrued Interest Receivable

 

-

 

 

-

 

 

667

 

 

 

-

 

 

667

 

Reserve for Unfunded Commitments

 

6,491

 

 

5,586

 

 

6,121

 

 

 

6,491

 

 

6,121

 

Total Reserve for Credit Losses

$

152,927

 

$

154,098

 

$

174,708

 

 

$

152,927

 

$

174,708

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans and Leases Outstanding

$

13,126,717

 

$

12,700,825

 

$

11,958,321

 

 

$

12,709,045

 

$

12,002,426

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Net Loans and Leases Charged-Off to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Average Loans and Leases Outstanding (annualized)

 

0.03

%

 

0.02

%

 

0.04

%

 

 

0.03

%

 

0.06

%

Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 2

 

1.10

%

 

1.15

%

 

1.39

%

 

 

1.10

%

 

1.39

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  Comprised of other revolving credit, installment, and lease financing.

 

 

 

 

 

 

 

 

2  The numerator comprises the Allowance for Credit Losses - Loans and Leases.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

Bank of Hawaii Corporation and Subsidiaries

 

 

 

 

 

 

 

Business Segments Selected Financial Information

 

 

 

 

Table 13a

 

 

Consumer

 

Commercial

 

Treasury

 

Consolidated

 

(dollars in thousands)

Banking

 

Banking

 

and Other

 

Total

 

Three Months Ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income (Loss)

$

85,666

 

$

56,249

 

$

(260

)

$

141,655

 

Provision for Credit Losses

 

1,148

 

 

(1

)

 

(1,147

)

 

-

 

Net Interest Income After Provision for Credit Losses

 

84,518

 

 

56,250

 

 

887

 

 

141,655

 

Noninterest Income (Loss)

 

30,974

 

 

(911

)

 

597

 

 

30,660

 

Noninterest Expense

 

(83,278

)

 

(17,073

)

 

(5,398

)

 

(105,749

)

Income (Loss) Before Income Taxes

 

32,214

 

 

38,266

 

 

(3,914

)

 

66,566

 

Provision for Income Taxes

 

(8,104

)

 

(9,273

)

 

3,612

 

 

(13,765

)

Net Income (Loss)

$

24,110

 

$

28,993

 

$

(302

)

$

52,801

 

Total Assets as of September 30, 2022

$

8,399,068

 

$

5,486,330

 

$

9,248,642

 

$

23,134,040

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

$

72,062

 

$

50,088

 

$

4,669

 

$

126,819

 

Provision for Credit Losses

 

1,235

 

 

(42

)

 

(11,593

)

 

(10,400

)

Net Interest Income After Provision for Credit Losses

 

70,827

 

 

50,130

 

 

16,262

 

 

137,219

 

Noninterest Income

 

32,046

 

 

7,906

 

 

1,426

 

 

41,378

 

Noninterest Expense

 

(71,377

)

 

(15,924

)

 

(9,218

)

 

(96,519

)

Income Before Income Taxes

 

31,496

 

 

42,112

 

 

8,470

 

 

82,078

 

Provision for Income Taxes

 

(8,001

)

 

(10,373

)

 

(1,651

)

 

(20,025

)

Net Income

$

23,495

 

$

31,739

 

$

6,819

 

$

62,053

 

Total Assets as of September 30, 2021

$

7,530,513

 

$

5,087,831

 

$

10,347,039

 

$

22,965,383

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

Bank of Hawaii Corporation and Subsidiaries

 

 

 

 

 

 

 

Business Segments Selected Financial Information

 

 

 

 

Table 13b

 

 

Consumer

 

Commercial

 

Treasury

 

Consolidated

 

(dollars in thousands)

Banking

 

Banking

 

and Other

 

Total

 

Nine Months Ended September 30, 2022 1

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

$

232,654

 

$

152,391

 

$

14,775

 

$

399,820

 

Provision for Credit Losses

 

3,463

 

 

(200

)

 

(11,263

)

 

(8,000

)

Net Interest Income After Provision for Credit Losses

 

229,191

 

 

152,591

 

 

26,038

 

 

407,820

 

Noninterest Income

 

94,811

 

 

17,650

 

 

3,908

 

 

116,369

 

Noninterest Expense

 

(247,724

)

 

(52,757

)

 

(12,081

)

 

(312,562

)

Income Before Income Taxes

 

76,278

 

 

117,484

 

 

17,865

 

 

211,627

 

Provision for Income Taxes

 

(19,151

)

 

(28,721

)

 

742

 

 

(47,130

)

Net Income

$

57,127

 

$

88,763

 

$

18,607

 

$

164,497

 

Total Assets as of September 30, 2022 1

$

8,399,068

 

$

5,486,330

 

$

9,248,642

 

$

23,134,040

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

$

212,991

 

$

146,269

 

$

11,642

 

$

370,902

 

Provision for Credit Losses

 

5,088

 

 

205

 

 

(46,093

)

 

(40,800

)

Net Interest Income After Provision for Credit Losses

 

207,903

 

 

146,064

 

 

57,735

 

 

411,702

 

Noninterest Income

 

98,344

 

 

22,339

 

 

8,096

 

 

128,779

 

Noninterest Expense

 

(222,426

)

 

(47,343

)

 

(22,142

)

 

(291,911

)

Income Before Income Taxes

 

83,821

 

 

121,060

 

 

43,689

 

 

248,570

 

Provision for Income Taxes

 

(20,840

)

 

(29,634

)

 

(8,561

)

 

(59,035

)

Net Income

$

62,981

 

$

91,426

 

$

35,128

 

$

189,535

 

Total Assets as of September 30, 2021

$

7,530,513

 

$

5,087,831

 

$

10,347,039

 

$

22,965,383

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  Certain prior period information has been reclassified to conform to current presentation.

 

 

 


 

 

 

Bank of Hawaii Corporation and Subsidiaries

 

 

 

Selected Quarterly Financial Data

 

 

Table 14

 

Three Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

(dollars in thousands, except per share amounts)

2022

 

 

2022

 

 

2022

 

 

2021

 

 

2021

 

 

Quarterly Operating Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and Fees on Loans and Leases

$

115,013

 

 

$

101,663

 

 

$

94,439

 

 

$

97,853

 

 

$

100,570

 

 

Income on Investment Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale

 

16,995

 

 

 

17,984

 

 

 

17,100

 

 

 

15,850

 

 

 

16,396

 

 

Held-to-Maturity

 

20,243

 

 

 

18,838

 

 

 

18,701

 

 

 

18,325

 

 

 

16,754

 

 

Deposits

 

10

 

 

 

5

 

 

 

4

 

 

 

1

 

 

 

2

 

 

Funds Sold

 

2,335

 

 

 

719

 

 

 

127

 

 

 

104

 

 

 

382

 

 

Other

 

322

 

 

 

353

 

 

 

202

 

 

 

176

 

 

 

159

 

 

Total Interest Income

 

154,918

 

 

 

139,562

 

 

 

130,573

 

 

 

132,309

 

 

 

134,263

 

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

10,296

 

 

 

3,535

 

 

 

2,353

 

 

 

2,898

 

 

 

3,837

 

 

Securities Sold Under Agreements to Repurchase

 

2,745

 

 

 

2,794

 

 

 

2,772

 

 

 

2,834

 

 

 

3,423

 

 

Funds Purchased

 

40

 

 

 

57

 

 

 

2

 

 

 

6

 

 

 

-

 

 

Short-Term Borrowings

 

-

 

 

 

92

 

 

 

-

 

 

 

-

 

 

 

-

 

 

Other Debt

 

182

 

 

 

182

 

 

 

183

 

 

 

183

 

 

 

184

 

 

Total Interest Expense

 

13,263

 

 

 

6,660

 

 

 

5,310

 

 

 

5,921

 

 

 

7,444

 

 

Net Interest Income

 

141,655

 

 

 

132,902

 

 

 

125,263

 

 

 

126,388

 

 

 

126,819

 

 

Provision for Credit Losses

 

-

 

 

 

(2,500

)

 

 

(5,500

)

 

 

(9,700

)

 

 

(10,400

)

 

Net Interest Income After Provision for Credit Losses

 

141,655

 

 

 

135,402

 

 

 

130,763

 

 

 

136,088

 

 

 

137,219

 

 

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust and Asset Management

 

10,418

 

 

 

11,457

 

 

 

11,276

 

 

 

11,693

 

 

 

11,415

 

 

Mortgage Banking

 

1,002

 

 

 

1,247

 

 

 

2,740

 

 

 

2,908

 

 

 

3,136

 

 

Service Charges on Deposit Accounts

 

7,526

 

 

 

7,309

 

 

 

7,272

 

 

 

6,861

 

 

 

6,510

 

 

Fees, Exchange, and Other Service Charges

 

13,863

 

 

 

14,193

 

 

 

12,952

 

 

 

14,439

 

 

 

13,604

 

 

Investment Securities Gains (Losses), Net

 

(2,147

)

 

 

(1,295

)

 

 

(1,545

)

 

 

(1,258

)

 

 

(1,259

)

 

Annuity and Insurance

 

1,034

 

 

 

870

 

 

 

791

 

 

 

876

 

 

 

735

 

 

Bank-Owned Life Insurance

 

2,486

 

 

 

2,658

 

 

 

2,349

 

 

 

1,907

 

 

 

1,897

 

 

Other

 

(3,522

)

 

 

5,719

 

 

 

7,716

 

 

 

5,148

 

 

 

5,340

 

 

Total Noninterest Income

 

30,660

 

 

 

42,158

 

 

 

43,551

 

 

 

42,574

 

 

 

41,378

 

 

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and Benefits

 

59,938

 

 

 

57,769

 

 

 

59,924

 

 

 

59,434

 

 

 

56,447

 

 

Net Occupancy

 

10,186

 

 

 

9,930

 

 

 

9,826

 

 

 

9,028

 

 

 

3,079

 

 

Net Equipment

 

9,736

 

 

 

9,543

 

 

 

9,153

 

 

 

9,105

 

 

 

8,924

 

 

Data Processing

 

4,616

 

 

 

4,607

 

 

 

4,560

 

 

 

4,696

 

 

 

4,722

 

 

Professional Fees

 

3,799

 

 

 

3,542

 

 

 

3,258

 

 

 

3,427

 

 

 

2,948

 

 

FDIC Insurance

 

1,680

 

 

 

1,590

 

 

 

1,502

 

 

 

1,619

 

 

 

1,594

 

 

Other

 

15,794

 

 

 

15,958

 

 

 

15,651

 

 

 

14,369

 

 

 

18,805

 

 

Total Noninterest Expense

 

105,749

 

 

 

102,939

 

 

 

103,874

 

 

 

101,678

 

 

 

96,519

 

 

Income Before Provision for Income Taxes

 

66,566

 

 

 

74,621

 

 

 

70,440

 

 

 

76,984

 

 

 

82,078

 

 

Provision for Income Taxes

 

13,765

 

 

 

17,759

 

 

 

15,606

 

 

 

13,147

 

 

 

20,025

 

 

Net Income

$

52,801

 

 

$

56,862

 

 

$

54,834

 

 

$

63,837

 

 

$

62,053

 

 

Preferred Stock Dividends

 

1,969

 

 

 

1,969

 

 

 

1,969

 

 

 

1,969

 

 

 

1,006

 

 

Net Income Available to Common Shareholders

$

50,832

 

 

$

54,893

 

 

$

52,865

 

 

$

61,868

 

 

$

61,047

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

$

1.28

 

 

$

1.38

 

 

$

1.33

 

 

$

1.56

 

 

$

1.53

 

 

Diluted Earnings Per Common Share

$

1.28

 

 

$

1.38

 

 

$

1.32

 

 

$

1.55

 

 

$

1.52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Totals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and Leases

$

13,321,606

 

 

$

12,951,573

 

 

$

12,544,492

 

 

$

12,259,076

 

 

$

12,072,750

 

 

Total Assets

 

23,134,040

 

 

 

23,232,699

 

 

 

23,000,317

 

 

 

22,784,941

 

 

 

22,965,383

 

 

Total Deposits

 

20,888,773

 

 

 

21,025,681

 

 

 

20,716,287

 

 

 

20,360,108

 

 

 

20,493,678

 

 

Total Shareholders' Equity

 

1,282,384

 

 

 

1,348,746

 

 

 

1,448,885

 

 

 

1,611,611

 

 

 

1,597,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets

 

0.91

 

%

 

1.00

 

%

 

0.97

 

%

 

1.12

 

%

 

1.07

 

%

Return on Average Shareholders' Equity

 

15.31

 

 

 

16.40

 

 

 

14.18

 

 

 

15.92

 

 

 

15.41

 

 

Return on Average Common Equity

 

16.98

 

 

 

18.19

 

 

 

15.44

 

 

 

17.40

 

 

 

17.08

 

 

Efficiency Ratio 1

 

61.37

 

 

 

58.80

 

 

 

61.53

 

 

 

60.18

 

 

 

57.38

 

 

Net Interest Margin 2

 

2.60

 

 

 

2.47

 

 

 

2.34

 

 

 

2.34

 

 

 

2.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).

2  Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.

 

 

 


 

 

Bank of Hawaii Corporation and Subsidiaries

 

 

 

 

 

 

Hawaii Economic Trends

 

 

Table 15

 

Eight Months Ended

 

 

Year Ended

(dollars in millions; jobs in thousands)

August 31, 2022

 

 

December 31, 2021

December 31, 2020

Hawaii Economic Trends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State General Fund Revenues 1

$

6,698.4

 

 

26.0

 

%

$

8,137.9

 

 

 

26.9

 

%

$

6,415.1

 

 

 

(12.3

)

%

General Excise and Use Tax Revenue 1

 

2,858.8

 

 

20.7

 

 

 

3,604.3

 

 

 

18.6

 

 

 

3,038.8

 

 

 

(15.6

)

 

Jobs 2

 

651.6

 

 

 

 

 

 

642.6

 

 

 

 

 

 

 

594.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

August 31,

 

 

December 31,

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

2020

Unemployment, seasonally adjusted 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statewide

 

 

 

 

 

 

 

 

 

 

 

 

4.1

 

%

 

4.3

 

%

 

9.8

 

%

Honolulu County

 

 

 

 

 

 

 

 

 

 

 

 

3.8

 

 

 

4.0

 

 

 

8.8

 

 

Hawaii County

 

 

 

 

 

 

 

 

 

 

 

 

4.2

 

 

 

4.2

 

 

 

9.3

 

 

Maui County

 

 

 

 

 

 

 

 

 

 

 

 

4.8

 

 

 

5.4

 

 

 

13.9

 

 

Kauai County

 

 

 

 

 

 

 

 

 

 

 

 

5.4

 

 

 

6.0

 

 

 

13.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

December 31,

(1-year percentage change, except months of inventory)

 

 

 

 

 

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Housing Trends (Single Family Oahu) 4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Median Home Price

 

 

 

 

 

 

 

 

13.9

 

%

 

19.3

 

%

 

5.2

 

%

 

(0.1

)

%

Home Sales Volume (units)

 

 

 

 

 

 

 

 

(15.8

)

%

 

17.9

 

%

 

2.3

 

%

 

3.9

 

%

Months of Inventory

 

 

 

 

 

 

 

 

1.9

 

 

 

0.8

 

 

 

1.4

 

 

 

2.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monthly Visitor Arrivals,

 

 

Percentage Change

(in thousands)

 

 

 

 

 

 

 

Not Seasonally Adjusted

 

 

from Previous Year

Tourism 5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     August 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

829.7

 

 

 

 

 

 

 

14.8

 

%

     July 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

919.2

 

 

 

 

 

 

 

4.5

 

 

     June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

841.8

 

 

 

 

 

 

 

6.4

 

 

     May 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

774.1

 

 

 

 

 

 

 

22.9

 

 

     April 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

809.6

 

 

 

 

 

 

 

67.3

 

 

     March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

785.7

 

 

 

 

 

 

 

78.7

 

 

     February 28, 2022

 

 

 

 

 

 

 

 

 

 

 

 

623.7

 

 

 

 

 

 

 

165.1

 

 

     January 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

567.2

 

 

 

 

 

 

 

229.8

 

 

     December 31,2021

 

 

 

 

 

 

 

 

 

 

 

 

753.7

 

 

 

 

 

 

 

219.6

 

 

     November 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

613.4

 

 

 

 

 

 

 

233.8

 

 

     October 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

550.8

 

 

 

 

 

 

 

618.2

 

 

     September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

505.9

 

 

 

 

 

 

 

2,647.9

 

 

     August 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

723.0

 

 

 

 

 

 

 

2,995.6

 

 

     July 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

879.6

 

 

 

 

 

 

 

3,798.4

 

 

     June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

791.1

 

 

 

 

 

 

 

4,534.7

 

 

     May 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

629.7

 

 

 

 

 

 

 

6,807.4

 

 

     April 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

484.1

 

 

 

 

 

 

 

10,506.3

 

 

     March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

439.8

 

 

 

 

 

 

 

1.1

 

 

     February 28, 2021

 

 

 

 

 

 

 

 

 

 

 

 

235.3

 

 

 

 

 

 

 

(71.6

)

 

     January 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

172.0

 

 

 

 

 

 

 

(80.1

)

 

     December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

235.8

 

 

 

 

 

 

 

(75.2

)

 

     November 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

183.8

 

 

 

 

 

 

 

(77.3

)

 

     October 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

76.7

 

 

 

 

 

 

 

(90.4

)

 

     September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

18.4

 

 

 

 

 

 

 

(97.5

)

 

     August 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

23.4

 

 

 

 

 

 

 

(97.5

)

 

     July 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

22.6

 

 

 

 

 

 

 

(97.7

)

 

     June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

17.1

 

 

 

 

 

 

 

(98.2

)

 

     May 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

9.1

 

 

 

 

 

 

 

(98.9

)

 

     April 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

4.6

 

 

 

 

 

 

 

(99.5

)

 

     March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

434.9

 

 

 

 

 

 

 

(53.7

)

 

     February 29, 2020

 

 

 

 

 

 

 

 

 

 

 

 

828.1

 

 

 

 

 

 

 

5.8

 

 

     January 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

862.6

 

 

 

 

 

 

 

5.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  Source:  Hawaii Department of Business, Economic Development & Tourism

2  Source:  U.S. Bureau of Labor Statistics

3  Source:  University of Hawaii Economic Research Organization (UHERO)

4  Source:  Honolulu Board of Realtors

5  Source:  Hawaii Tourism Authority

 

 

Slide 1

Bank of Hawai‘i Corporation third quarter 2022 financial report October 24, 2022 Exhibit 99.2

Slide 2

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

Slide 3

unemployment experience & forecast source: University of Hawaii Economic Research Organization (UHERO), seasonally adjusted August and September 2022 unemployment rate from Hawaii Department of Business, Economic Development, and Tourism (DBEDT) Hawaii unemployment rate 3

Slide 4

4 visitor arrivals monthly by market, indexed to January 2017 Aug-22 source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT)

Slide 5

revenue per available room revenue per available room (RevPAR) 5 source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT) Aug-22

Slide 6

strong real estate market Oahu market indicators – Sep 2022 6 continued strength in Oahu real estate source: Honolulu Board of Realtors, compiled from MLS data

Slide 7

3Q financial update

Slide 8

balanced core loan growth $ in millions 8 annual growth rate commercial consumer $13,322 note: numbers may not add up due to rounding, CAGR, annual growth rate, and q-o-q core loan growth exclude PPP market share includes four banks: Bank of Hawai‘i, First Hawaiian Bank, American Savings Bank (ASB), and Central Pacific Bank, excludes mainland loans, note: mainland loans not disclosed for ASB and assumed to be zero 2016 – 2022 YTD CAGR commercial: 6.8% consumer: 7.4%

Slide 9

low cost, long duration deposits $ in billions 9 2016 – 2022 YTD CAGR: 6.8% source: S&P Capital IQ, S&P Regional Banking Index excluding banks greater than $50bn as of 1/4/22 3Q22

Slide 10

sustainable NII growth $ in millions 10 note: core NII and NIM excludes PPP and significant items; numbers may not add up due to rounding $5.5

Slide 11

11 asset sensitive note: numbers may not add up due to rounding

Slide 12

disciplined expenses $ in millions 12 modest decrease in core expenses and steady investment in innovation note: numbers may not add up due to rounding

Slide 13

financial summary $ in millions, except per share amounts 13 note: numbers may not add up due to rounding

Slide 14

ample liquidity loan to deposit ratio compared with peers strong liquidity to fund continued growth 14 note: S&P Regional Banking Index excluding banks greater than $50bn as of 1/4/22, weighted average peers by total assets as of 2Q22 local peer bank average contains BOH, FHB, CPB, ASB, and TBNK; data unavailable for ASB prior to 2008 and FHB prior to 2011

Slide 15

15 strong risk-based capital fortress capital position note: 3Q22 regulatory capital ratios are preliminary; KBW Regional Banking Index (KRX) as of 1/4/22

Slide 16

3Q credit update

Slide 17

loan portfolio excluding PPP 17 40% commercial 73% real estate secured wtd avg LTV 57% 57% w/ BOH ≥ 10 yrs avg balance $0.7MM CRE C&I residential mortgage home equity auto leasing other consumer construction 60% consumer 84% 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 $23MM in PPP loan balances including deferred costs and fees

Slide 18

credit quality 18 * 81% of total criticized in CRE with 61% wtd avg LTV

Slide 19

production quality 19 commercial consumer

Slide 20

reserve trend 20 $ in millions allowance for credit losses note: balances and coverage ratio based on allowance for credit losses – loans and leases

Slide 21

other highlights

Slide 22

Hawai‘i’s Best Bank 22 12 consecutive years

Slide 23

Q & A