Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.95 for the third quarter of 2020 compared with diluted earnings per share of $0.98 in the previous quarter and diluted earnings per share of $1.29 in the same quarter last year. Net income for the third quarter of 2020 was $37.8 million compared with net income of $38.9 million in the second quarter of 2020 and net income of $52.1 million in the third quarter of 2019.
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Loan and lease balances were $11.8 billion at September 30, 2020 down slightly from June 30, 2020, up 7.3 percent from December 31, 2019, and up 8.4 percent compared with September 30, 2019. Total deposits reached another record high of $17.7 billion at the end of the third quarter of 2020, an increase of 1.8 percent from June 30, 2020, up 12.4 percent from December 31, 2019, and up 15.6 percent compared with September 30, 2019.
“Our financial results for the third quarter largely reflect current conditions at the local, national and global level,” said Peter Ho, Chairman, President and CEO. “Our long-standing commitment to conservatism, liquidity and capital strength positions us relatively well to these extraordinary times.”
The return on average assets for the third quarter of 2020 was 0.76 percent, down from 0.82 percent in the previous quarter and 1.17 percent in the same quarter last year. The return on average equity for the third quarter of 2020 was 11.01 percent compared with 11.58 percent for the second quarter of 2020 and 16.02 percent for the third quarter of 2019. The efficiency ratio for the third quarter of 2020 was 54.22 percent compared with 49.95 percent in the previous quarter and 58.55 percent in the same quarter last year.
For the nine-month period ended September 30, 2020, net income was $111.5 million, down from net income of $167.8 million during the same period last year. Diluted earnings per share were $2.80 for the nine-month period in 2020 compared with diluted earnings per share of $4.11 for the same period in 2019. The return on average assets for the nine-month period ended September 30, 2020 was 0.78 percent compared with the return on average assets of 1.29 percent for the same nine months in 2019. The 2020 year-to-date return on average equity was 11.08 percent compared with 17.58 percent for the nine months ended September 30, 2019. The efficiency ratio for the nine-month period in 2020 was 53.33 percent compared with 56.16 percent in the same period last year.
Financial Highlights
Net interest income, on a taxable equivalent basis, for the third quarter of 2020 was $124.5 million, a decrease of $2.5 million compared with $127.0 million in the second quarter of 2020 and a decrease of $0.7 million compared with $125.2 million in the third quarter of 2019. Net interest income in the second quarter of 2020 included an interest recovery of $2.9 million that increased the margin by 7 basis points. Net interest income, on a taxable equivalent basis, for the nine-month period in 2020 was $377.8 million, an increase of $2.1 million compared with net interest income of $375.7 million for the same period in 2019. Analyses of the changes in net interest income are included in Tables 8a, 8b and 8c.
The net interest margin was 2.67 percent for the third quarter of 2020, down 16 basis points from 2.83 percent in the previous quarter and down 34 basis points from the net interest margin of 3.01 percent in the third quarter of 2019. The decrease is largely due to lower rates and higher levels of liquidity due to the strong deposit growth. The net interest margin for the nine-month period in 2020 was 2.82 percent compared with the net interest margin of 3.05 percent for the same nine-month period last year.
Results for the third quarter of 2020 included a provision for credit losses of $28.6 million compared with $40.4 million in the previous quarter and $4.3 million in the same quarter last year. The provision for credit losses for the nine-month period in 2020 was $102.6 million compared with a provision for credit losses of $11.3 million during the same period in 2019.
Noninterest income was $41.7 million in the third quarter of 2020, a decrease of $9.6 million compared with $51.3 million in the second quarter of 2020 and a decrease of $4.8 million compared with $46.5 million in the third quarter of 2019. There were no significant items in noninterest income during the third quarter of 2020 or the third quarter of 2019. Noninterest income during the second quarter of 2020 included a gain of $14.2 million related to a sale of Visa Class B shares. Adjusted for the sale of the Visa shares, the increase in noninterest income compared to the prior quarter was primarily due to higher fee income. The decline in noninterest revenue compared to the third quarter last year is due to lower fee income resulting from decreased customer and visitor activity related to the COVID-19 pandemic. Noninterest income for the nine-month period in 2020 was $139.2 million, an increase of $3.6 million compared with noninterest income of $135.6 million for the same period in 2019.
Noninterest expense was $89.9 million in the third quarter of 2020, an increase of $1.0 million compared with $88.9 million in the second quarter of 2020 and a decrease of $10.4 million compared with $100.3 million in the third quarter last year. Noninterest expense during the third quarter of 2020 included a gain of $1.9 million related to the sale of a branch building partially offset by $1.8 million in severance. There were no significant items in noninterest expense during the second quarter of 2020. Noninterest expense in the third quarter of 2019 included a $6.0 million increase in legal reserves. Noninterest expense for the nine-month period in 2020 was $275.2 million, a decrease of $10.9 million compared with noninterest expense of $286.1 million for the same period in 2019. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.
The effective tax rate for the third quarter of 2020 was 20.09 percent compared with 20.05 percent in the previous quarter and 22.08 percent in the same quarter last year. The effective tax rate for the nine-month period in 2020 was 19.34 percent compared with an effective tax rate of 20.89 percent during the same period last year.
The Company’s business segments are defined as Consumer Banking, Commercial Banking, and Treasury & Other. Results for the business segments are determined based on the Company’s internal financial management reporting process and organizational structure. Selected financial information is included in Tables 13a and 13b.
Asset Quality
The Company’s asset quality remained relatively stable during the third quarter of 2020. Total non-performing assets were $18.6 million at September 30, 2020 down from $22.7 million at June 30, 2020 and $21.6 million at September 30, 2019. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.16 percent, down from 0.19 percent at the end of the previous quarter and 0.20 percent at the end of the third quarter last year.
Accruing loans and leases past due 90 days or more were $9.6 million at September 30, 2020 compared with $8.9 million at June 30, 2020 and $6.1 million at September 30, 2019. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $58.7 million at September 30, 2020, compared with $59.7 million at June 30, 2020 and $46.2 million at September 30, 2019. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.
Net loan and lease charge-offs during the third quarter of 2020 were a net recovery of $1.5 million. Loan and lease charge-offs of $2.3 million during the quarter were fully offset by recoveries of $3.8 million. Net charge-offs during the second quarter of 2020 were $5.1 million or 0.18 percent annualized of total average loans and leases outstanding and comprised of $8.3 million in charge-offs and recoveries of $3.2 million. Net charge-offs during the third quarter of 2019 were $3.0 million or 0.11 percent annualized of total average loans and leases outstanding and comprised of $5.8 million in charge-offs and recoveries of $2.8 million. Net charge-offs during the nine-month period in 2020 were $7.4 million or 0.09 percent annualized of total average loans and leases outstanding compared with net charge-offs of $9.0 million or 0.11 percent annualized of total average loans and leases outstanding for the nine-month period in 2019.
The allowance for credit losses was $203.5 million at September 30, 2020 compared with $173.4 million at June 30, 2020 and $108.9 million at September 30, 2019. The ratio of the allowance for credit losses to total loans and leases was 1.73 percent at September 30, 2020 compared with 1.47 percent at June 30, 2020 and 1.00 percent at September 30, 2019. The reserve for unfunded commitments was $2.3 million at September 30, 2020 compared with $2.5 million at June 30, 2020 and $6.8 million at September 30, 2019. Details of loan and lease charge-offs, recoveries and components of the total reserve for credit losses are summarized in Table 12.
Other Financial Highlights
Total assets increased to $20.1 billion at September 30, 2020 compared with $19.8 billion at June 30, 2020 and $17.7 billion at September 30, 2019. Average total assets were $19.7 billion during the third quarter of 2020 compared with $19.2 billion during the previous quarter and $17.6 billion during the third quarter last year.
The investment securities portfolio was $6.4 billion at September 30, 2020, up from $6.0 billion at June 30, 2020 and $5.5 billion at September 30, 2019 due to strong growth in deposits that outpaced loan growth. The portfolio remains largely comprised of securities issued by U.S. government agencies and includes $3.2 billion in securities held to maturity and $3.2 billion in securities available for sale. The securities portfolio at June 30, 2020 included $3.3 billion in securities held to maturity and $2.7 billion in securities available for sale compared with $2.9 billion in securities held to maturity and $2.6 billion in securities available for sale at September 30, 2019.
Total loans and leases were $11.8 billion at September 30, 2020. Average total loans and leases were $11.7 billion during the third quarter of 2020 up slightly from the previous quarter and up 9.0 percent from $10.8 billion during the same quarter last year. The commercial loan portfolio was $5.0 billion at September 30, 2020, down $5.9 million or 0.1 percent from June 30, 2020, and up $860.1 million or 20.7 percent from September 30, 2019. The consumer loan portfolio was $6.8 billion at September 30, 2020, down $5.9 million or 0.1 percent from June 30, 2020, and up $52.2 million or 0.8 percent from September 30, 2019.
Total deposits were $17.7 billion at September 30, 2020. Average total deposits were $17.3 billion during the third quarter of 2020, up 3.5 percent from $16.7 billion during the previous quarter and up 12.7 percent from $15.3 billion during the same quarter last year. Consumer deposits increased to $8.9 billion at September 30, 2020, up $136.9 million or 1.6 percent from $8.8 billion at June 30, 2020 and up $1.0 billion or 12.8 percent from $7.9 billion at September 30, 2019. Commercial deposits were $7.2 billion at September 30, 2020, down $135.5 million or 1.9 percent from $7.3 billion at June 30, 2020 and were up $1.0 billion or 16.3 percent from $6.2 billion at September 30, 2019. Other deposits, including public funds, were $1.7 billion at September 30, 2020, an increase of $314.3 million or 23.1 percent from June 30, 2020 and up $381.7 million or 29.5 percent from September 30, 2019. Deposit balances are summarized in Tables 7a, 7b, and 10.
Total shareholders’ equity increased to $1.36 billion at September 30, 2020 compared with $1.35 billion at June 30, 2020 and $1.29 billion at September 30, 2019. There were no shares repurchased during the third quarter of 2020. The Tier 1 Capital Ratio at September 30, 2020 was 12.09 percent compared with 12.04 percent at June 30, 2020 and 12.33 percent at September 30, 2019. The Tier 1 leverage ratio at September 30, 2020 was 6.81 percent compared with 6.90 percent at June 30, 2020 and 7.32 percent at September 30, 2019.
The Company’s Board of Directors declared a quarterly cash dividend of $0.67 per share on the Company’s outstanding shares. The dividend will be payable on December 14, 2020 to shareholders of record at the close of business on November 30, 2020.
Conference Call Information
The Company will review its third quarter 2020 financial results today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time). The live call, including a slide presentation, will be accessible on the investor relations link of Company’s website, www.boh.com. The webcast link is https://edge.media-server.com/mmc/p/xr9ecjhk. The toll-free number for the teleconference is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, October 26, 2020. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the conference ID 6164797 when prompted. In addition, the replay will be available on the Company's website, www.boh.com.
Forward-Looking Statements
This news release, and other statements made by the Company in connection with it may contain "forward-looking statements", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2019, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.
Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers, and governments in Hawaii and the West Pacific. The Company’s principal subsidiary, Bank of Hawaii, was founded in 1897. For more information about Bank of Hawaii Corporation, see the Company’s web site, www.boh.com.
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||||||
| Financial Highlights | Table 1 | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | June 30, | September 30, | September 30, | |||||||||||||
| (dollars in thousands, except per share amounts) | 2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||
| For the Period: | ||||||||||||||||
| Operating Results | ||||||||||||||||
| Net Interest Income | $ | 124,166 | $ | 126,691 | $ | 124,896 | $ | 376,823 | $ | 373,830 | ||||||
| Provision for Credit Losses | 28,600 | 40,400 | 4,250 | 102,600 | 11,250 | |||||||||||
| Total Noninterest Income | 41,734 | 51,268 | 46,507 | 139,151 | 135,636 | |||||||||||
| Total Noninterest Expense | 89,949 | 88,892 | 100,349 | 275,153 | 286,131 | |||||||||||
| Net Income | 37,840 | 38,908 | 52,052 | 111,490 | 167,770 | |||||||||||
| Basic Earnings Per Share | 0.95 | 0.98 | 1.30 | 2.81 | 4.14 | |||||||||||
| Diluted Earnings Per Share | 0.95 | 0.98 | 1.29 | 2.80 | 4.11 | |||||||||||
| Dividends Declared Per Share | 0.67 | 0.67 | 0.65 | 2.01 | 1.92 | |||||||||||
| Performance Ratios | ||||||||||||||||
| Return on Average Assets | 0.76 | % | 0.82 | % | 1.17 | % | 0.78 | % | 1.29 | % | ||||||
| Return on Average Shareholders' Equity | 11.01 | 11.58 | 16.02 | 11.08 | 17.58 | |||||||||||
| Efficiency Ratio 1 | 54.22 | 49.95 | 58.55 | 53.33 | 56.16 | |||||||||||
| Net Interest Margin 2 | 2.67 | 2.83 | 3.01 | 2.82 | 3.05 | |||||||||||
| Dividend Payout Ratio 3 | 70.53 | 68.37 | 50.00 | 71.53 | 46.38 | |||||||||||
| Average Shareholders' Equity to Average Assets | 6.93 | 7.04 | 7.32 | 7.06 | 7.31 | |||||||||||
| Average Balances | ||||||||||||||||
| Average Loans and Leases | $ | 11,739,785 | $ | 11,727,649 | $ | 10,770,720 | $ | 11,510,222 | $ | 10,624,311 | ||||||
| Average Assets | 19,741,139 | 19,189,581 | 17,605,394 | 19,053,626 | 17,442,054 | |||||||||||
| Average Deposits | 17,270,206 | 16,679,511 | 15,330,691 | 16,591,640 | 15,156,275 | |||||||||||
| Average Shareholders' Equity | 1,367,756 | 1,351,345 | 1,289,417 | 1,344,402 | 1,275,753 | |||||||||||
| Per Share of Common Stock | ||||||||||||||||
| Book Value | $ | 33.99 | $ | 33.76 | $ | 32.00 | $ | 33.99 | $ | 32.00 | ||||||
| Tangible Book Value | 33.21 | 32.97 | 31.22 | 33.21 | 31.22 | |||||||||||
| Market Value | ||||||||||||||||
| Closing | 50.52 | 61.41 | 85.93 | 50.52 | 85.93 | |||||||||||
| High | 61.94 | 72.74 | 88.20 | 95.53 | 88.20 | |||||||||||
| Low | 48.77 | 51.15 | 79.13 | 46.70 | 66.54 | |||||||||||
September 30, | June 30, | December 31, | September 30, | |||||||||||||
2020 | 2020 | 2019 | 2019 | |||||||||||||
| As of Period End: | ||||||||||||||||
| Balance Sheet Totals | ||||||||||||||||
| Loans and Leases | $ | 11,793,608 | $ | 11,805,370 | $ | 10,990,892 | $ | 10,881,298 | ||||||||
| Total Assets | 20,109,489 | 19,769,942 | 18,095,496 | 17,672,140 | ||||||||||||
| Total Deposits | 17,738,883 | 17,423,155 | 15,784,482 | 15,340,752 | ||||||||||||
| Other Debt | 60,502 | 60,524 | 85,565 | 110,585 | ||||||||||||
| Total Shareholders' Equity | 1,361,739 | 1,352,082 | 1,286,832 | 1,291,490 | ||||||||||||
| Asset Quality | ||||||||||||||||
| Non-Performing Assets | $ | 18,626 | $ | 22,701 | $ | 20,117 | $ | 21,645 | ||||||||
| Allowance for Credit Losses | 203,496 | 173,439 | 138,150 | 108,936 | ||||||||||||
| Allowance to Loans and Leases Outstanding | 1.73 | % | 1.47 | % | 1.00 | % | 1.00 | % | ||||||||
| Capital Ratios 4 | ||||||||||||||||
| Common Equity Tier 1 Capital Ratio | 12.09 | % | 12.04 | % | 12.18 | % | 12.33 | % | ||||||||
| Tier 1 Capital Ratio | 12.09 | 12.04 | 12.18 | 12.33 | ||||||||||||
| Total Capital Ratio | 13.35 | 13.29 | 13.28 | 13.44 | ||||||||||||
| Tier 1 Leverage Ratio | 6.81 | 6.90 | 7.25 | 7.32 | ||||||||||||
| Total Shareholders' Equity to Total Assets | 6.77 | 6.84 | 7.11 | 7.31 | ||||||||||||
| Tangible Common Equity to Tangible Assets 5 | 6.63 | 6.69 | 6.95 | 7.14 | ||||||||||||
| Tangible Common Equity to Risk-Weighted Assets 5 | 12.02 | 12.07 | 11.85 | 12.10 | ||||||||||||
| Non-Financial Data | ||||||||||||||||
| Full-Time Equivalent Employees | 2,038 | 2,112 | 2,124 | 2,124 | ||||||||||||
| Branches | 67 | 67 | 68 | 67 | ||||||||||||
| ATMs | 358 | 367 | 387 | 379 | ||||||||||||
| 1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income). | |||||||||
| 2 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets. | |||||||||
| 3 Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share. | |||||||||
| 4 Regulatory capital ratios as of September 30, 2020 are preliminary. | |||||||||
| 5 Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 “Reconciliation of Non-GAAP Financial Measures." |
| Bank of Hawaii Corporation and Subsidiaries | |||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | Table 2 | ||||||||||||||
September 30, | June 30, | December 31, | September 30, | ||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | 2019 | |||||||||||
| Total Shareholders' Equity | $ | 1,361,739 | $ | 1,352,082 | $ | 1,286,832 | $ | 1,291,490 | |||||||
| Less: Goodwill | 31,517 | 31,517 | 31,517 | 31,517 | |||||||||||
| Tangible Common Equity | $ | 1,330,222 | $ | 1,320,565 | $ | 1,255,315 | $ | 1,259,973 | |||||||
| Total Assets | $ | 20,109,489 | $ | 19,769,942 | $ | 18,095,496 | $ | 17,672,140 | |||||||
| Less: Goodwill | 31,517 | 31,517 | 31,517 | 31,517 | |||||||||||
| Tangible Assets | $ | 20,077,972 | $ | 19,738,425 | $ | 18,063,979 | $ | 17,640,623 | |||||||
| Risk-Weighted Assets, determined in accordance | |||||||||||||||
| with prescribed regulatory requirements | $ | 11,068,888 | $ | 10,941,894 | $ | 10,589,061 | $ | 10,416,560 | |||||||
| Total Shareholders' Equity to Total Assets | 6.77 | % | 6.84 | % | 7.11 | % | 7.31 | % | |||||||
| Tangible Common Equity to Tangible Assets (Non-GAAP) | 6.63 | % | 6.69 | % | 6.95 | % | 7.14 | % | |||||||
| Tier 1 Capital Ratio | 12.09 | % | 12.04 | % | 12.18 | % | 12.33 | % | |||||||
| Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) | 12.02 | % | 12.07 | % | 11.85 | % | 12.10 | % | |||||||
| Note: Risk-Weighted Assets and Regulatory capital ratios as of September 30, 2020 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) | 2020 | 2020 | 2019 | 2020 | 2019 | |||||||||
| Interest Income | ||||||||||||||
| Interest and Fees on Loans and Leases | $ | 103,189 | $ | 107,628 | $ | 110,877 | $ | 319,027 | $ | 329,789 | ||||
| Income on Investment Securities | ||||||||||||||
| Available-for-Sale | 14,558 | 14,576 | 17,512 | 45,845 | 46,016 | |||||||||
| Held-to-Maturity | 15,967 | 16,723 | 18,796 | 51,942 | 62,866 | |||||||||
| Deposits | 3 | 1 | 9 | 13 | 33 | |||||||||
| Funds Sold | 149 | 92 | 656 | 787 | 2,830 | |||||||||
| Other | 151 | 125 | 233 | 494 | 762 | |||||||||
| Total Interest Income | 134,017 | 139,145 | 148,083 | 418,108 | 442,296 | |||||||||
| Interest Expense | ||||||||||||||
| Deposits | 5,891 | 7,954 | 18,055 | 28,105 | 51,967 | |||||||||
| Securities Sold Under Agreements to Repurchase | 3,622 | 4,020 | 4,257 | 11,667 | 13,451 | |||||||||
| Funds Purchased | - | 18 | 146 | 90 | 815 | |||||||||
| Short-Term Borrowings | 1 | 22 | 1 | 62 | 38 | |||||||||
| Other Debt | 337 | 440 | 728 | 1,361 | 2,195 | |||||||||
| Total Interest Expense | 9,851 | 12,454 | 23,187 | 41,285 | 68,466 | |||||||||
| Net Interest Income | 124,166 | 126,691 | 124,896 | 376,823 | 373,830 | |||||||||
| Provision for Credit Losses | 28,600 | 40,400 | 4,250 | 102,600 | 11,250 | |||||||||
| Net Interest Income After Provision for Credit Losses | 95,566 | 86,291 | 120,646 | 274,223 | 362,580 | |||||||||
| Noninterest Income | ||||||||||||||
| Trust and Asset Management | 10,752 | 10,550 | 10,930 | 32,217 | 33,076 | |||||||||
| Mortgage Banking | 4,047 | 4,278 | 4,864 | 11,020 | 10,487 | |||||||||
| Service Charges on Deposit Accounts | 6,027 | 5,097 | 7,592 | 18,575 | 22,239 | |||||||||
| Fees, Exchange, and Other Service Charges | 12,296 | 9,417 | 14,900 | 34,913 | 43,360 | |||||||||
| Investment Securities Gains (Losses), Net | (1,121 | ) | 13,216 | (1,469 | ) | 11,125 | (3,080 | ) | ||||||
| Annuity and Insurance | 881 | 883 | 1,278 | 2,692 | 5,662 | |||||||||
| Bank-Owned Life Insurance | 1,806 | 1,649 | 1,647 | 5,035 | 5,136 | |||||||||
| Other | 7,046 | 6,178 | 6,765 | 23,574 | 18,756 | |||||||||
| Total Noninterest Income | 41,734 | 51,268 | 46,507 | 139,151 | 135,636 | |||||||||
| Noninterest Expense | ||||||||||||||
| Salaries and Benefits | 51,951 | 50,715 | 54,345 | 157,129 | 164,442 | |||||||||
| Net Occupancy | 7,281 | 8,761 | 8,803 | 24,997 | 24,976 | |||||||||
| Net Equipment | 9,223 | 8,195 | 7,637 | 25,874 | 21,365 | |||||||||
| Data Processing | 4,691 | 4,416 | 4,676 | 13,895 | 13,929 | |||||||||
| Professional Fees | 2,743 | 3,061 | 2,184 | 9,012 | 6,814 | |||||||||
| FDIC Insurance | 1,282 | 1,558 | 1,257 | 4,296 | 3,816 | |||||||||
| Other | 12,778 | 12,186 | 21,447 | 39,950 | 50,789 | |||||||||
| Total Noninterest Expense | 89,949 | 88,892 | 100,349 | 275,153 | 286,131 | |||||||||
| Income Before Provision for Income Taxes | 47,351 | 48,667 | 66,804 | 138,221 | 212,085 | |||||||||
| Provision for Income Taxes | 9,511 | 9,759 | 14,752 | 26,731 | 44,315 | |||||||||
| Net Income | $ | 37,840 | $ | 38,908 | $ | 52,052 | $ | 111,490 | $ | 167,770 | ||||
| Basic Earnings Per Share | $ | 0.95 | $ | 0.98 | $ | 1.30 | $ | 2.81 | $ | 4.14 | ||||
| Diluted Earnings Per Share | $ | 0.95 | $ | 0.98 | $ | 1.29 | $ | 2.80 | $ | 4.11 | ||||
| Dividends Declared Per Share | $ | 0.67 | $ | 0.67 | $ | 0.65 | $ | 2.01 | $ | 1.92 | ||||
| Basic Weighted Average Shares | 39,745,120 | 39,703,735 | 40,190,508 | 39,710,252 | 40,554,036 | |||||||||
| Diluted Weighted Average Shares | 39,869,135 | 39,832,475 | 40,450,742 | 39,872,406 | 40,806,295 | |||||||||
| Bank of Hawaii Corporation and Subsidiaries | |||||||||||||
| Consolidated Statements of Comprehensive Income | Table 4 | ||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | June 30, | September 30, | September 30, | ||||||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||
| Net Income | $ | 37,840 | $ | 38,908 | $ | 52,052 | $ | 111,490 | $ | 167,770 | |||
| Other Comprehensive Income (Loss), Net of Tax: | |||||||||||||
| Net Unrealized Gains (Losses) on Investment Securities | (4,900 | ) | 7,730 | 5,405 | 44,389 | 28,533 | |||||||
| Defined Benefit Plans | 374 | 374 | 245 | 1,122 | 736 | ||||||||
| Other Comprehensive Income (Loss) | (4,526 | ) | 8,104 | 5,650 | 45,511 | 29,269 | |||||||
| Comprehensive Income | $ | 33,314 | $ | 47,012 | $ | 57,702 | $ | 157,001 | $ | 197,039 | |||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||
| Consolidated Statements of Condition | Table 5 | |||||||||||
September 30, | June 30, | December 31, | September 30, | |||||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | 2019 | ||||||||
| Assets | ||||||||||||
| Interest-Bearing Deposits in Other Banks | $ | 4,233 | $ | 2,310 | $ | 4,979 | $ | 2,946 | ||||
| Funds Sold | 736,524 | 800,857 | 254,574 | 108,446 | ||||||||
| Investment Securities | ||||||||||||
| Available-for-Sale | 3,190,313 | 2,726,478 | 2,619,003 | 2,594,394 | ||||||||
| Held-to-Maturity (Fair Value of $3,288,668; $3,374,294; $3,062,882; and $2,972,273) | 3,198,830 | 3,276,829 | 3,042,294 | 2,946,910 | ||||||||
| Loans Held for Sale | - | 20,711 | 39,062 | 36,720 | ||||||||
| Loans and Leases | 11,793,608 | 11,805,370 | 10,990,892 | 10,881,298 | ||||||||
| Allowance for Credit Losses | (203,496 | ) | (173,439 | ) | (110,027 | ) | (108,936 | ) | ||||
| Net Loans and Leases | 11,590,112 | 11,631,931 | 10,880,865 | 10,772,362 | ||||||||
| Total Earning Assets | 18,720,012 | 18,459,116 | 16,840,777 | 16,461,778 | ||||||||
| Cash and Due from Banks | 260,167 | 242,423 | 299,105 | 259,492 | ||||||||
| Premises and Equipment, Net | 199,021 | 198,582 | 188,388 | 179,453 | ||||||||
| Operating Lease Right-of-Use Assets | 96,200 | 97,166 | 100,838 | 101,005 | ||||||||
| Accrued Interest Receivable | 57,370 | 50,645 | 46,476 | 47,897 | ||||||||
| Foreclosed Real Estate | 2,332 | 2,506 | 2,737 | 2,939 | ||||||||
| Mortgage Servicing Rights | 21,887 | 22,904 | 25,022 | 24,408 | ||||||||
| Goodwill | 31,517 | 31,517 | 31,517 | 31,517 | ||||||||
| Bank-Owned Life Insurance | 291,231 | 291,185 | 287,962 | 286,936 | ||||||||
| Other Assets | 429,752 | 373,898 | 272,674 | 276,715 | ||||||||
| Total Assets | $ | 20,109,489 | $ | 19,769,942 | $ | 18,095,496 | $ | 17,672,140 | ||||
| Liabilities | ||||||||||||
| Deposits | ||||||||||||
| Noninterest-Bearing Demand | $ | 5,428,567 | $ | 5,485,015 | $ | 4,489,525 | $ | 4,392,706 | ||||
| Interest-Bearing Demand | 3,824,448 | 3,437,654 | 3,127,205 | 3,000,865 | ||||||||
| Savings | 6,763,891 | 6,821,710 | 6,365,321 | 6,141,098 | ||||||||
| Time | 1,721,977 | 1,678,776 | 1,802,431 | 1,806,083 | ||||||||
| Total Deposits | 17,738,883 | 17,423,155 | 15,784,482 | 15,340,752 | ||||||||
| Securities Sold Under Agreements to Repurchase | 602,106 | 603,206 | 604,306 | 604,299 | ||||||||
| Other Debt | 60,502 | 60,524 | 85,565 | 110,585 | ||||||||
| Operating Lease Liabilities | 103,869 | 104,741 | 108,210 | 108,264 | ||||||||
| Retirement Benefits Payable | 43,505 | 43,833 | 44,504 | 39,682 | ||||||||
| Accrued Interest Payable | 6,613 | 7,775 | 8,040 | 8,435 | ||||||||
| Taxes Payable and Deferred Taxes | 12,124 | 38,297 | 16,085 | 21,089 | ||||||||
| Other Liabilities | 180,148 | 136,329 | 157,472 | 147,544 | ||||||||
| Total Liabilities | 18,747,750 | 18,417,860 | 16,808,664 | 16,380,650 | ||||||||
| Shareholders' Equity | ||||||||||||
| Common Stock ($.01 par value; authorized 500,000,000 shares; | ||||||||||||
| issued / outstanding: September 30, 2020 - 58,248,690 / 40,060,675; | ||||||||||||
| June 30, 2020 - 58,263,452 / 40,047,694; December 31, 2019 - 58,166,910 / 40,039,695; | ||||||||||||
| and September 30, 2019 - 58,176,305 / 40,359,259) | 580 | 580 | 579 | 579 | ||||||||
| Capital Surplus | 588,632 | 586,946 | 582,566 | 580,200 | ||||||||
| Accumulated Other Comprehensive Gain (Loss) | 14,399 | 18,925 | (31,112 | ) | (21,774 | ) | ||||||
| Retained Earnings | 1,797,763 | 1,786,351 | 1,761,415 | 1,730,437 | ||||||||
| Treasury Stock, at Cost (Shares: September 30, 2020 - 18,188,015; June 30, 2020 - 18,215,758; | ||||||||||||
| December 31, 2019 - 18,127,215; and September 30, 2019 - 17,817,046) | (1,039,635 | ) | (1,040,720 | ) | (1,026,616 | ) | (997,952 | ) | ||||
| Total Shareholders' Equity | 1,361,739 | 1,352,082 | 1,286,832 | 1,291,490 | ||||||||
| Total Liabilities and Shareholders' Equity | $ | 20,109,489 | $ | 19,769,942 | $ | 18,095,496 | $ | 17,672,140 | ||||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||||||||
| Consolidated Statements of Shareholders' Equity | Table 6 | |||||||||||||||||
| Accum. | ||||||||||||||||||
| Other | ||||||||||||||||||
| Compre- | ||||||||||||||||||
| hensive | ||||||||||||||||||
| Common Shares | Common | Capital | Income | Retained | Treasury | |||||||||||||
| (dollars in thousands) | Outstanding | Stock | Surplus | (Loss) | Earnings | Stock | Total | |||||||||||
| Balance as of December 31, 2019 | 40,039,695 | $ | 579 | $ | 582,566 | $ | (31,112 | ) | $ | 1,761,415 | $ | (1,026,616 | ) | $ | 1,286,832 | |||
| Net Income | - | - | - | - | 111,490 | - | 111,490 | |||||||||||
| Other Comprehensive Income | - | - | - | 45,511 | - | - | 45,511 | |||||||||||
| Cumulative Change in Accounting Principle | - | - | - | - | 3,632 | - | 3,632 | |||||||||||
| Share-Based Compensation | - | - | 5,347 | - | - | - | 5,347 | |||||||||||
| Common Stock Issued under Purchase and Equity | ||||||||||||||||||
| Compensation Plans | 222,682 | 1 | 719 | - | 1,762 | 4,878 | 7,360 | |||||||||||
| Common Stock Repurchased | (201,702 | ) | - | - | - | - | (17,897 | ) | (17,897 | ) | ||||||||
| Cash Dividends Declared ($2.01 per share) | - | - | - | - | (80,536 | ) | - | (80,536 | ) | |||||||||
| Balance as of September 30, 2020 | 40,060,675 | $ | 580 | $ | 588,632 | $ | 14,399 | $ | 1,797,763 | $ | (1,039,635 | ) | $ | 1,361,739 | ||||
| Balance as of December 31, 2018 | 41,499,898 | $ | 577 | $ | 571,704 | $ | (51,043 | ) | $ | 1,641,314 | $ | (894,352 | ) | $ | 1,268,200 | |||
| Net Income | - | - | - | - | 167,770 | - | 167,770 | |||||||||||
| Other Comprehensive Income | - | - | - | 29,269 | - | - | 29,269 | |||||||||||
| Share-Based Compensation | - | - | 6,662 | - | - | - | 6,662 | |||||||||||
| Common Stock Issued under Purchase and Equity | ||||||||||||||||||
| Compensation Plans | 200,984 | 2 | 1,834 | - | (109 | ) | 4,275 | 6,002 | ||||||||||
| Common Stock Repurchased | (1,341,623 | ) | - | - | - | - | (107,875 | ) | (107,875 | ) | ||||||||
| Cash Dividends Declared ($1.92 per share) | - | - | - | - | (78,538 | ) | - | (78,538 | ) | |||||||||
| Balance as of September 30, 2019 | 40,359,259 | $ | 579 | $ | 580,200 | $ | (21,774 | ) | $ | 1,730,437 | $ | (997,952 | ) | $ | 1,291,490 | |||
| Bank of Hawaii Corporation and Subsidiaries | |||||||||||||||||||
| Average Balances and Interest Rates - Taxable-Equivalent Basis | Table 7a | ||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||
September 30, 2020 | June 30, 2020 | September 30, 2019 | |||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||
| (dollars in millions) | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||
| Earning Assets | |||||||||||||||||||
| Interest-Bearing Deposits in Other Banks | $ | 2.6 | $ | - | 0.45 | % | $ | 2.6 | $ | - | 0.18 | % | $ | 3.1 | $ | - | 1.19 | % | |
| Funds Sold | 584.2 | 0.1 | 0.10 | 545.9 | 0.1 | 0.07 | 121.1 | 0.7 | 2.12 | ||||||||||
| Investment Securities | |||||||||||||||||||
| Available-for-Sale | |||||||||||||||||||
| Taxable | 2,918.6 | 14.3 | 1.96 | 2,614.1 | 14.3 | 2.19 | 2,647.9 | 17.1 | 2.59 | ||||||||||
| Non-Taxable | 25.8 | 0.3 | 4.22 | 32.2 | 0.4 | 4.45 | 42.6 | 0.5 | 4.45 | ||||||||||
| Held-to-Maturity | |||||||||||||||||||
| Taxable | 3,257.7 | 15.7 | 1.93 | 2,957.6 | 16.4 | 2.22 | 2,873.7 | 18.5 | 2.57 | ||||||||||
| Non-Taxable | 54.1 | 0.4 | 2.66 | 54.4 | 0.4 | 2.66 | 65.2 | 0.4 | 2.72 | ||||||||||
| Total Investment Securities | 6,256.2 | 30.7 | 1.96 | 5,658.3 | 31.5 | 2.22 | 5,629.4 | 36.5 | 2.59 | ||||||||||
| Loans Held for Sale | 15.9 | 0.1 | 3.24 | 23.4 | 0.2 | 3.24 | 24.3 | 0.2 | 3.94 | ||||||||||
| Loans and Leases 1 | |||||||||||||||||||
| Commercial and Industrial | 1,917.0 | 14.1 | 2.93 | 1,963.8 | 17.9 | 3.67 | 1,383.8 | 14.4 | 4.14 | ||||||||||
| Commercial Mortgage | 2,722.3 | 21.7 | 3.18 | 2,622.9 | 22.3 | 3.42 | 2,423.7 | 26.2 | 4.28 | ||||||||||
| Construction | 234.0 | 2.1 | 3.60 | 255.8 | 2.5 | 3.93 | 126.0 | 1.6 | 5.10 | ||||||||||
| Commercial Lease Financing | 110.7 | 0.5 | 1.82 | 110.9 | 0.5 | 1.88 | 161.8 | 1.0 | 2.57 | ||||||||||
| Residential Mortgage | 3,988.7 | 36.7 | 3.68 | 3,939.6 | 36.0 | 3.65 | 3,809.6 | 36.5 | 3.83 | ||||||||||
| Home Equity | 1,625.2 | 14.1 | 3.45 | 1,665.2 | 14.3 | 3.45 | 1,689.2 | 16.1 | 3.79 | ||||||||||
| Automobile | 708.3 | 6.4 | 3.59 | 701.2 | 6.2 | 3.55 | 707.0 | 6.4 | 3.59 | ||||||||||
| Other 2 | 433.6 | 7.6 | 6.96 | 468.2 | 7.9 | 6.77 | 469.6 | 8.5 | 7.16 | ||||||||||
| Total Loans and Leases | 11,739.8 | 103.2 | 3.50 | 11,727.6 | 107.6 | 3.68 | 10,770.7 | 110.7 | 4.09 | ||||||||||
| Other | 33.3 | 0.2 | 1.81 | 34.0 | 0.1 | 1.47 | 35.0 | 0.3 | 2.66 | ||||||||||
| Total Earning Assets 3 | 18,632.0 | 134.3 | 2.88 | 17,991.8 | 139.5 | 3.11 | 16,583.6 | 148.4 | 3.56 | ||||||||||
| Cash and Due from Banks | 234.3 | 302.4 | 231.5 | ||||||||||||||||
| Other Assets | 874.8 | 895.4 | 790.3 | ||||||||||||||||
| Total Assets | $ | 19,741.1 | $ | 19,189.6 | $ | 17,605.4 | |||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||||
| Interest-Bearing Deposits | |||||||||||||||||||
| Demand | $ | 3,465.5 | 0.4 | 0.04 | $ | 3,226.6 | 0.6 | 0.07 | $ | 2,950.2 | 1.1 | 0.15 | |||||||
| Savings | 6,886.0 | 1.7 | 0.10 | 6,691.4 | 2.2 | 0.13 | 6,122.0 | 8.8 | 0.57 | ||||||||||
| Time | 1,568.3 | 3.8 | 0.97 | 1,826.8 | 5.2 | 1.13 | 1,851.0 | 8.2 | 1.75 | ||||||||||
| Total Interest-Bearing Deposits | 11,919.8 | 5.9 | 0.20 | 11,744.8 | 8.0 | 0.27 | 10,923.2 | 18.1 | 0.66 | ||||||||||
| Short-Term Borrowings | - | - | - | 57.6 | - | 0.28 | 27.1 | 0.1 | 2.13 | ||||||||||
| Securities Sold Under Agreements to Repurchase | 602.9 | 3.6 | 2.35 | 602.9 | 4.0 | 2.64 | 513.8 | 4.3 | 3.24 | ||||||||||
| Other Debt | 60.5 | 0.3 | 2.22 | 60.5 | 0.5 | 2.91 | 110.6 | 0.7 | 2.62 | ||||||||||
| Total Interest-Bearing Liabilities | 12,583.2 | 9.8 | 0.31 | 12,465.8 | 12.5 | 0.40 | 11,574.7 | 23.2 | 0.79 | ||||||||||
| Net Interest Income | $ | 124.5 | $ | 127.0 | $ | 125.2 | |||||||||||||
| Interest Rate Spread | 2.57 | % | 2.71 | % | 2.77 | % | |||||||||||||
| Net Interest Margin | 2.67 | % | 2.83 | % | 3.01 | % | |||||||||||||
| Noninterest-Bearing Demand Deposits | 5,350.4 | 4,934.7 | 4,407.5 | ||||||||||||||||
| Other Liabilities | 439.7 | 437.8 | 333.8 | ||||||||||||||||
| Shareholders' Equity | 1,367.8 | 1,351.3 | 1,289.4 | ||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 19,741.1 | $ | 19,189.6 | $ | 17,605.4 | |||||||||||||
| 1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. | ||||||||||||
| 2 Comprised of other consumer revolving credit, installment, and consumer lease financing. | ||||||||||||
| 3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $295,000, $358,000, and $296,000 for the three months ended September 30, 2020, June 30, 2020, and September 30, 2019, respectively. |
| Bank of Hawaii Corporation and Subsidiaries | |||||||||||||
| Average Balances and Interest Rates - Taxable-Equivalent Basis | Table 7b | ||||||||||||
| Nine Months Ended | Nine Months Ended | ||||||||||||
| September 30, 2020 | September 30, 2019 | ||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||
| (dollars in millions) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||
| Earning Assets | |||||||||||||
| Interest-Bearing Deposits in Other Banks | $ | 2.2 | $ | - | 0.76 | % | $ | 3.0 | $ | - | 1.49 | % | |
| Funds Sold | 428.3 | 0.8 | 0.24 | 161.7 | 2.8 | 2.31 | |||||||
| Investment Securities | |||||||||||||
| Available-for-Sale | |||||||||||||
| Taxable | 2,745.7 | 45.1 | 2.19 | 2,086.5 | 43.0 | 2.75 | |||||||
| Non-Taxable | 30.1 | 1.0 | 4.37 | 135.3 | 3.8 | 3.73 | |||||||
| Held-to-Maturity | |||||||||||||
| Taxable | 3,084.4 | 51.0 | 2.21 | 3,199.9 | 59.9 | 2.50 | |||||||
| Non-Taxable | 54.4 | 1.1 | 2.66 | 163.5 | 3.8 | 3.08 | |||||||
| Total Investment Securities | 5,914.6 | 98.2 | 2.21 | 5,585.2 | 110.5 | 2.64 | |||||||
| Loans Held for Sale | 20.8 | 0.5 | 3.35 | 18.5 | 0.6 | 4.06 | |||||||
| Loans and Leases 1 | |||||||||||||
| Commercial and Industrial | 1,763.9 | 45.2 | 3.43 | 1,375.9 | 44.6 | 4.33 | |||||||
| Commercial Mortgage | 2,631.9 | 69.2 | 3.51 | 2,373.9 | 76.9 | 4.33 | |||||||
| Construction | 234.3 | 7.1 | 4.04 | 133.8 | 5.2 | 5.22 | |||||||
| Commercial Lease Financing | 111.0 | 1.6 | 1.88 | 160.9 | 3.0 | 2.45 | |||||||
| Residential Mortgage | 3,941.3 | 109.5 | 3.70 | 3,740.5 | 108.0 | 3.85 | |||||||
| Home Equity | 1,656.8 | 43.6 | 3.51 | 1,691.4 | 48.4 | 3.83 | |||||||
| Automobile | 710.2 | 19.0 | 3.57 | 688.0 | 18.6 | 3.62 | |||||||
| Other 2 | 460.8 | 23.9 | 6.93 | 459.9 | 24.8 | 7.21 | |||||||
| Total Loans and Leases | 11,510.2 | 319.1 | 3.70 | 10,624.3 | 329.5 | 4.14 | |||||||
| Other | 33.9 | 0.5 | 1.95 | 35.2 | 0.8 | 2.89 | |||||||
| Total Earning Assets 3 | 17,910.0 | 419.1 | 3.12 | 16,427.9 | 444.2 | 3.61 | |||||||
| Cash and Due from Banks | 271.7 | 237.9 | |||||||||||
| Other Assets | 871.9 | 776.3 | |||||||||||
| Total Assets | $ | 19,053.6 | $ | 17,442.1 | |||||||||
| Interest-Bearing Liabilities | |||||||||||||
| Interest-Bearing Deposits | |||||||||||||
| Demand | $ | 3,268.1 | 1.9 | 0.08 | $ | 2,930.9 | 4.0 | 0.18 | |||||
| Savings | 6,693.9 | 11.0 | 0.22 | 5,962.9 | 24.4 | 0.55 | |||||||
| Time | 1,712.2 | 15.2 | 1.19 | 1,807.6 | 23.6 | 1.75 | |||||||
| Total Interest-Bearing Deposits | 11,674.2 | 28.1 | 0.32 | 10,701.4 | 52.0 | 0.65 | |||||||
| Short-Term Borrowings | 38.3 | 0.2 | 0.52 | 46.8 | 0.9 | 2.40 | |||||||
| Securities Sold Under Agreements to Repurchase | 603.4 | 11.6 | 2.54 | 507.5 | 13.4 | 3.50 | |||||||
| Other Debt | 62.6 | 1.4 | 2.90 | 113.7 | 2.2 | 2.58 | |||||||
| Total Interest-Bearing Liabilities | 12,378.5 | 41.3 | 0.44 | 11,369.4 | 68.5 | 0.80 | |||||||
| Net Interest Income | $ | 377.8 | $ | 375.7 | |||||||||
| Interest Rate Spread | 2.68 | % | 2.81 | % | |||||||||
| Net Interest Margin | 2.82 | % | 3.05 | % | |||||||||
| Noninterest-Bearing Demand Deposits | 4,917.4 | 4,454.9 | |||||||||||
| Other Liabilities | 413.3 | 342.0 | |||||||||||
| Shareholders' Equity | 1,344.4 | 1,275.8 | |||||||||||
| Total Liabilities and Shareholders' Equity | $ | 19,053.6 | $ | 17,442.1 | |||||||||
| 1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. | |||||||||
| 2 Comprised of other consumer revolving credit, installment, and consumer lease financing. | |||||||||
| 3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1,010,000 and $1,878,000 for the nine months ended September 30, 2020 and September 30, 2019, respectively. | |||||||||
| Bank of Hawaii Corporation and Subsidiaries | |||||||||
| Analysis of Change in Net Interest Income - Taxable-Equivalent Basis | Table 8a | ||||||||
Three Months Ended September 30, 2020 | |||||||||
Compared to June 30, 2020 | |||||||||
| (dollars in millions) | Volume 1 | Rate 1 | Total | ||||||
| Change in Interest Income: | |||||||||
| Investment Securities | |||||||||
| Available-for-Sale | |||||||||
| Taxable | $ | 1.6 | $ | (1.6 | ) | $ | - | ||
| Non-Taxable | (0.1 | ) | - | (0.1 | ) | ||||
| Held-to-Maturity | |||||||||
| Taxable | 1.6 | (2.3 | ) | (0.7 | ) | ||||
| Total Investment Securities | 3.1 | (3.9 | ) | (0.8 | ) | ||||
| Loans Held for Sale | (0.1 | ) | - | (0.1 | ) | ||||
| Loans and Leases | |||||||||
| Commercial and Industrial | (0.4 | ) | (3.4 | ) | (3.8 | ) | |||
| Commercial Mortgage | 0.9 | (1.5 | ) | (0.6 | ) | ||||
| Construction | (0.2 | ) | (0.2 | ) | (0.4 | ) | |||
| Residential Mortgage | 0.5 | 0.2 | 0.7 | ||||||
| Home Equity | (0.2 | ) | - | (0.2 | ) | ||||
| Automobile | 0.1 | 0.1 | 0.2 | ||||||
| Other 2 | (0.5 | ) | 0.2 | (0.3 | ) | ||||
| Total Loans and Leases | 0.2 | (4.6 | ) | (4.4 | ) | ||||
| Other | - | 0.1 | 0.1 | ||||||
| Total Change in Interest Income | 3.2 | (8.4 | ) | (5.2 | ) | ||||
| Change in Interest Expense: | |||||||||
| Interest-Bearing Deposits | |||||||||
| Demand | - | (0.2 | ) | (0.2 | ) | ||||
| Savings | 0.1 | (0.6 | ) | (0.5 | ) | ||||
| Time | (0.7 | ) | (0.7 | ) | (1.4 | ) | |||
| Total Interest-Bearing Deposits | (0.6 | ) | (1.5 | ) | (2.1 | ) | |||
| Securities Sold Under Agreements to Repurchase | - | (0.4 | ) | (0.4 | ) | ||||
| Other Debt | - | (0.2 | ) | (0.2 | ) | ||||
| Total Change in Interest Expense | (0.6 | ) | (2.1 | ) | (2.7 | ) | |||
| Change in Net Interest Income | $ | 3.8 | $ | (6.3 | ) | $ | (2.5 | ) | |
| 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, 2020 | |||||||||
Compared to September 30, 2019 | |||||||||
| (dollars in millions) | Volume 1 | Rate 1 | Total | ||||||
| Change in Interest Income: | |||||||||
| Funds Sold | $ | 0.6 | $ | (1.2 | ) | $ | (0.6 | ) | |
| Investment Securities | |||||||||
| Available-for-Sale | |||||||||
| Taxable | 1.6 | (4.4 | ) | (2.8 | ) | ||||
| Non-Taxable | (0.2 | ) | - | (0.2 | ) | ||||
| Held-to-Maturity | |||||||||
| Taxable | 2.2 | (5.0 | ) | (2.8 | ) | ||||
| Total Investment Securities | 3.6 | (9.4 | ) | (5.8 | ) | ||||
| Loans Held for Sale | (0.1 | ) | - | (0.1 | ) | ||||
| Loans and Leases | |||||||||
| Commercial and Industrial | 4.6 | (4.9 | ) | (0.3 | ) | ||||
| Commercial Mortgage | 2.9 | (7.4 | ) | (4.5 | ) | ||||
| Construction | 1.1 | (0.6 | ) | 0.5 | |||||
| Commercial Lease Financing | (0.3 | ) | (0.2 | ) | (0.5 | ) | |||
| Residential Mortgage | 1.7 | (1.5 | ) | 0.2 | |||||
| Home Equity | (0.6 | ) | (1.4 | ) | (2.0 | ) | |||
| Other 2 | (0.6 | ) | (0.3 | ) | (0.9 | ) | |||
| Total Loans and Leases | 8.8 | (16.3 | ) | (7.5 | ) | ||||
| Other | - | (0.1 | ) | (0.1 | ) | ||||
| Total Change in Interest Income | 12.9 | (27.0 | ) | (14.1 | ) | ||||
| Change in Interest Expense: | |||||||||
| Interest-Bearing Deposits | |||||||||
| Demand | 0.2 | (0.9 | ) | (0.7 | ) | ||||
| Savings | 1.0 | (8.1 | ) | (7.1 | ) | ||||
| Time | (1.2 | ) | (3.2 | ) | (4.4 | ) | |||
| Total Interest-Bearing Deposits | - | (12.2 | ) | (12.2 | ) | ||||
| Short-Term Borrowings | (0.1 | ) | - | (0.1 | ) | ||||
| Securities Sold Under Agreements to Repurchase | 0.6 | (1.3 | ) | (0.7 | ) | ||||
| Other Debt | (0.3 | ) | (0.1 | ) | (0.4 | ) | |||
| Total Change in Interest Expense | 0.2 | (13.6 | ) | (13.4 | ) | ||||
| Change in Net Interest Income | $ | 12.7 | $ | (13.4 | ) | $ | (0.7 | ) | |
| 1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. | |||
| 2 Comprised of other consumer revolving credit, installment, and consumer lease financing. |
| Bank of Hawaii Corporation and Subsidiaries | |||||||||
| Analysis of Change in Net Interest Income - Taxable-Equivalent Basis | Table 8c | ||||||||
| Nine Months Ended September 30, 2020 | |||||||||
| Compared to September 30, 2019 | |||||||||
| (dollars in millions) | Volume 1 | Rate 1 | Total | ||||||
| Change in Interest Income: | |||||||||
| Funds Sold | $ | 2.0 | $ | (4.0 | ) | $ | (2.0 | ) | |
| Investment Securities | |||||||||
| Available-for-Sale | |||||||||
| Taxable | 12.0 | (9.9 | ) | 2.1 | |||||
| Non-Taxable | (3.4 | ) | 0.6 | (2.8 | ) | ||||
| Held-to-Maturity | |||||||||
| Taxable | (2.1 | ) | (6.8 | ) | (8.9 | ) | |||
| Non-Taxable | (2.2 | ) | (0.5 | ) | (2.7 | ) | |||
| Total Investment Securities | 4.3 | (16.6 | ) | (12.3 | ) | ||||
| Loans Held for Sale | 0.1 | (0.2 | ) | (0.1 | ) | ||||
| Loans and Leases | |||||||||
| Commercial and Industrial | 11.1 | (10.5 | ) | 0.6 | |||||
| Commercial Mortgage | 7.8 | (15.5 | ) | (7.7 | ) | ||||
| Construction | 3.3 | (1.4 | ) | 1.9 | |||||
| Commercial Lease Financing | (0.8 | ) | (0.6 | ) | (1.4 | ) | |||
| Residential Mortgage | 5.6 | (4.1 | ) | 1.5 | |||||
| Home Equity | (0.9 | ) | (3.9 | ) | (4.8 | ) | |||
| Automobile | 0.6 | (0.2 | ) | 0.4 | |||||
| Other 2 | - | (0.9 | ) | (0.9 | ) | ||||
| Total Loans and Leases | 26.7 | (37.1 | ) | (10.4 | ) | ||||
| Other | (0.1 | ) | (0.2 | ) | (0.3 | ) | |||
| Total Change in Interest Income | 33.0 | (58.1 | ) | (25.1 | ) | ||||
| Change in Interest Expense: | |||||||||
| Interest-Bearing Deposits | |||||||||
| Demand | 0.4 | (2.5 | ) | (2.1 | ) | ||||
| Savings | 2.7 | (16.1 | ) | (13.4 | ) | ||||
| Time | (1.2 | ) | (7.2 | ) | (8.4 | ) | |||
| Total Interest-Bearing Deposits | 1.9 | (25.8 | ) | (23.9 | ) | ||||
| Short-Term Borrowings | (0.1 | ) | (0.6 | ) | (0.7 | ) | |||
| Securities Sold Under Agreements to Repurchase | 2.3 | (4.1 | ) | (1.8 | ) | ||||
| Other Debt | (1.1 | ) | 0.3 | (0.8 | ) | ||||
| Total Change in Interest Expense | 3.0 | (30.2 | ) | (27.2 | ) | ||||
| Change in Net Interest Income | $ | 30.0 | $ | (27.9 | ) | $ | 2.1 | ||
| 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) | 2020 | 2020 | 2019 | 2020 | 2019 | ||||||
| Salaries | $ | 34,046 | $ | 32,739 | $ | 33,458 | $ | 100,271 | $ | 98,772 | |
| Incentive Compensation | 2,683 | 3,141 | 5,681 | 6,069 | 17,049 | ||||||
| Share-Based Compensation | 1,442 | 2,021 | 2,025 | 4,754 | 7,098 | ||||||
| Commission Expense | 1,800 | 1,647 | 1,760 | 4,821 | 4,394 | ||||||
| Retirement and Other Benefits | 4,164 | 4,446 | 4,185 | 13,316 | 13,872 | ||||||
| Payroll Taxes | 2,624 | 2,782 | 2,519 | 9,949 | 9,409 | ||||||
| Medical, Dental, and Life Insurance | 3,422 | 3,830 | 3,908 | 11,394 | 12,299 | ||||||
| Separation Expense | 1,770 | 109 | 809 | 6,555 | 1,549 | ||||||
| Total Salaries and Benefits | $ | 51,951 | $ | 50,715 | $ | 54,345 | $ | 157,129 | $ | 164,442 | |
| 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) | 2020 | 2020 | 2020 | 2019 | 2019 | ||||||
| Commercial | |||||||||||
| Commercial and Industrial | $ | 1,908,482 | $ | 1,956,939 | $ | 1,558,232 | $ | 1,379,152 | $ | 1,361,011 | |
| Commercial Mortgage | 2,745,611 | 2,707,534 | 2,616,243 | 2,518,051 | 2,477,296 | ||||||
| Construction | 250,943 | 245,099 | 245,390 | 194,170 | 154,754 | ||||||
| Lease Financing | 111,831 | 113,187 | 110,704 | 122,454 | 163,672 | ||||||
| Total Commercial | 5,016,867 | 5,022,759 | 4,530,569 | 4,213,827 | 4,156,733 | ||||||
| Consumer | |||||||||||
| Residential Mortgage | 4,044,228 | 3,989,393 | 3,928,183 | 3,891,100 | 3,846,511 | ||||||
| Home Equity | 1,605,486 | 1,640,887 | 1,692,154 | 1,676,073 | 1,681,951 | ||||||
| Automobile | 709,937 | 700,702 | 716,214 | 720,286 | 713,424 | ||||||
| Other 1 | 417,090 | 451,629 | 485,660 | 489,606 | 482,679 | ||||||
| Total Consumer | 6,776,741 | 6,782,611 | 6,822,211 | 6,777,065 | 6,724,565 | ||||||
| Total Loans and Leases | $ | 11,793,608 | $ | 11,805,370 | $ | 11,352,780 | $ | 10,990,892 | $ | 10,881,298 | |
| Deposits | |||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||
| (dollars in thousands) | 2020 | 2020 | 2020 | 2019 | 2019 | ||||||
| Consumer | $ | 8,903,808 | $ | 8,766,885 | $ | 8,294,464 | $ | 8,118,494 | $ | 7,893,454 | |
| Commercial | 7,159,531 | 7,295,033 | 6,358,583 | 6,324,214 | 6,153,492 | ||||||
| Public and Other | 1,675,544 | 1,361,237 | 1,402,314 | 1,341,774 | 1,293,806 | ||||||
| Total Deposits | $ | 17,738,883 | $ | 17,423,155 | $ | 16,055,361 | $ | 15,784,482 | $ | 15,340,752 | |
| 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) | 2020 | 2020 | 2020 | 2019 | 2019 | ||||||||||||
| Non-Performing Assets | |||||||||||||||||
| Non-Accrual Loans and Leases | |||||||||||||||||
| Commercial | |||||||||||||||||
| Commercial and Industrial | $ | 475 | $ | 459 | $ | 634 | $ | 830 | $ | 573 | |||||||
| Commercial Mortgage | 8,615 | 8,672 | 9,048 | 9,244 | 11,088 | ||||||||||||
| Total Commercial | 9,090 | 9,131 | 9,682 | 10,074 | 11,661 | ||||||||||||
| Consumer | |||||||||||||||||
| Residential Mortgage | 3,543 | 5,888 | 4,330 | 4,125 | 4,258 | ||||||||||||
| Home Equity | 3,661 | 5,176 | 4,086 | 3,181 | 2,787 | ||||||||||||
| Total Consumer | 7,204 | 11,064 | 8,416 | 7,306 | 7,045 | ||||||||||||
| Total Non-Accrual Loans and Leases | 16,294 | 20,195 | 18,098 | 17,380 | 18,706 | ||||||||||||
| Foreclosed Real Estate | 2,332 | 2,506 | 2,506 | 2,737 | 2,939 | ||||||||||||
| Total Non-Performing Assets | $ | 18,626 | $ | 22,701 | $ | 20,604 | $ | 20,117 | $ | 21,645 | |||||||
| Accruing Loans and Leases Past Due 90 Days or More | |||||||||||||||||
| Commercial | |||||||||||||||||
| Commercial and Industrial | $ | - | $ | - | $ | - | $ | - | $ | 81 | |||||||
| Total Commercial | - | - | - | - | 81 | ||||||||||||
| Consumer | |||||||||||||||||
| Residential Mortgage | 6,607 | 4,937 | 3,024 | 1,839 | 2,032 | ||||||||||||
| Home Equity | 2,571 | 3,519 | 3,426 | 4,125 | 2,320 | ||||||||||||
| Automobile | 156 | 133 | 866 | 949 | 582 | ||||||||||||
| Other 1 | 258 | 296 | 1,205 | 1,493 | 1,076 | ||||||||||||
| Total Consumer | 9,592 | 8,885 | 8,521 | 8,406 | 6,010 | ||||||||||||
| Total Accruing Loans and Leases Past Due 90 Days or More | $ | 9,592 | $ | 8,885 | $ | 8,521 | $ | 8,406 | $ | 6,091 | |||||||
| Restructured Loans on Accrual Status | |||||||||||||||||
and Not Past Due 90 Days or More | $ | 58,650 | $ | 59,713 | $ | 61,425 | $ | 63,103 | $ | 46,178 | |||||||
| Total Loans and Leases | $ | 11,793,608 | $ | 11,805,370 | $ | 11,352,780 | $ | 10,990,892 | $ | 10,881,298 | |||||||
| Ratio of Non-Accrual Loans and Leases to Total Loans and Leases | 0.14 | % | 0.17 | % | 0.16 | % | 0.16 | % | 0.17 | % | |||||||
| Ratio of Non-Performing Assets to Total Loans and Leases | |||||||||||||||||
| and Foreclosed Real Estate | 0.16 | % | 0.19 | % | 0.18 | % | 0.18 | % | 0.20 | % | |||||||
| Ratio of Commercial Non-Performing Assets to Total Commercial Loans | |||||||||||||||||
| and Leases and Commercial Foreclosed Real Estate | 0.18 | % | 0.18 | % | 0.21 | % | 0.24 | % | 0.28 | % | |||||||
| Ratio of Consumer Non-Performing Assets to Total Consumer Loans | |||||||||||||||||
| and Leases and Consumer Foreclosed Real Estate | 0.14 | % | 0.20 | % | 0.16 | % | 0.15 | % | 0.15 | % | |||||||
| Ratio of Non-Performing Assets and Accruing Loans and Leases | |||||||||||||||||
| Past Due 90 Days or More to Total Loans and Leases | |||||||||||||||||
| and Foreclosed Real Estate | 0.24 | % | 0.27 | % | 0.26 | % | 0.26 | % | 0.25 | % | |||||||
| Quarter to Quarter Changes in Non-Performing Assets | |||||||||||||||||
| Balance at Beginning of Quarter | $ | 22,701 | $ | 20,604 | $ | 20,117 | $ | 21,645 | $ | 21,782 | |||||||
| Additions | 938 | 5,856 | 1,754 | 883 | 1,035 | ||||||||||||
| Reductions | |||||||||||||||||
| Payments | (3,729 | ) | (2,736 | ) | (315 | ) | (495 | ) | (984 | ) | |||||||
| Return to Accrual Status | (1,035 | ) | (822 | ) | (437 | ) | (1,673 | ) | - | ||||||||
| Sales of Foreclosed Real Estate | (175 | ) | - | (231 | ) | (201 | ) | - | |||||||||
| Charge-offs/Write-downs | (74 | ) | (201 | ) | (284 | ) | (42 | ) | (188 | ) | |||||||
| Total Reductions | (5,013 | ) | (3,759 | ) | (1,267 | ) | (2,411 | ) | (1,172 | ) | |||||||
| Balance at End of Quarter | $ | 18,626 | $ | 22,701 | $ | 20,604 | $ | 20,117 | $ | 21,645 | |||||||
| 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) | 2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Balance at Beginning of Period | $ | 175,958 | $ | 141,467 | 114,494 | $ | 116,849 | 113,515 | ||||||||||
| CECL Adoption (Day 1) Impact | - | - | - | (5,072 | ) | - | ||||||||||||
| Loans and Leases Charged-Off | ||||||||||||||||||
| Commercial | ||||||||||||||||||
| Commercial and Industrial | (171 | ) | (656 | ) | (239 | ) | (1,520 | ) | (815 | ) | ||||||||
| Commercial Mortgage | - | - | - | - | (1,616 | ) | ||||||||||||
| Consumer | ||||||||||||||||||
| Residential Mortgage | - | (64 | ) | (7 | ) | (84 | ) | (62 | ) | |||||||||
| Home Equity | (43 | ) | (273 | ) | (215 | ) | (316 | ) | (655 | ) | ||||||||
| Automobile | (489 | ) | (3,114 | ) | (1,696 | ) | (6,103 | ) | (5,140 | ) | ||||||||
| Other 1 | (1,644 | ) | (4,176 | ) | (3,598 | ) | (9,784 | ) | (9,424 | ) | ||||||||
| Total Loans and Leases Charged-Off | (2,347 | ) | (8,283 | ) | (5,755 | ) | (17,807 | ) | (17,712 | ) | ||||||||
| Recoveries on Loans and Leases Previously Charged-Off | ||||||||||||||||||
| Commercial | ||||||||||||||||||
| Commercial and Industrial | 231 | 1,524 | 318 | 2,044 | 1,220 | |||||||||||||
| Commercial Mortgage | - | - | - | 40 | - | |||||||||||||
| Consumer | ||||||||||||||||||
| Residential Mortgage | 414 | 118 | 649 | 795 | 1,228 | |||||||||||||
| Home Equity | 727 | 321 | 428 | 2,024 | 1,762 | |||||||||||||
| Automobile | 1,313 | 547 | 660 | 2,865 | 2,449 | |||||||||||||
| Other 1 | 1,119 | 662 | 714 | 2,645 | 2,046 | |||||||||||||
| Total Recoveries on Loans and Leases Previously Charged-Off | 3,804 | 3,172 | 2,769 | 10,413 | 8,705 | |||||||||||||
| Net Loans and Leases Recovered (Charged-Off) | 1,457 | (5,111 | ) | (2,986 | ) | (7,394 | ) | (9,007 | ) | |||||||||
| Provision for Credit Losses | 28,600 | 40,400 | 4,250 | 102,600 | 11,250 | |||||||||||||
| Provision for Unfunded Commitments | (202 | ) | (798 | ) | - | (1,170 | ) | - | ||||||||||
| Balance at End of Period 2 | $ | 205,813 | $ | 175,958 | $ | 115,758 | $ | 205,813 | $ | 115,758 | ||||||||
| Components | ||||||||||||||||||
| Allowance for Credit Losses | $ | 203,496 | 173,439 | 108,936 | $ | 203,496 | 108,936 | |||||||||||
| Reserve for Unfunded Commitments | 2,317 | 2,519 | 6,822 | 2,317 | 6,822 | |||||||||||||
| Total Reserve for Credit Losses | $ | 205,813 | $ | 175,958 | $ | 115,758 | $ | 205,813 | $ | 115,758 | ||||||||
| Average Loans and Leases Outstanding | $ | 11,739,785 | $ | 11,727,649 | $ | 10,770,720 | $ | 11,510,222 | $ | 10,624,311 | ||||||||
| Ratio of Net Loans and Leases Charged-Off (Recovered) to | ||||||||||||||||||
| Average Loans and Leases Outstanding (annualized) | (0.05 | %) | 0.18 | % | 0.11 | % | 0.09 | % | 0.11 | % | ||||||||
| Ratio of Allowance for Credit Losses to Loans and Leases Outstanding | 1.73 | % | 1.47 | % | 1.00 | % | 1.73 | % | 1.00 | % | ||||||||
| 1 Comprised of other revolving credit, installment, and lease financing. | |||||||||
| 2 Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition. | |||||||||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||
| Business Segments Selected Financial Information | Table 13a | |||||||||||
| Consumer | Commercial | Treasury | Consolidated | |||||||||
| (dollars in thousands) | Banking | Banking | and Other | Total | ||||||||
| Three Months Ended September 30, 2020 | ||||||||||||
| Net Interest Income | $ | 73,868 | $ | 47,797 | $ | 2,501 | $ | 124,166 | ||||
| Provision for Credit Losses | (1,372 | ) | (85 | ) | 30,057 | 28,600 | ||||||
| Net Interest Income (Loss) After Provision for Credit Losses | 75,240 | 47,882 | (27,556 | ) | 95,566 | |||||||
| Noninterest Income | 31,776 | 7,672 | 2,286 | 41,734 | ||||||||
| Noninterest Expense | (69,408 | ) | (15,430 | ) | (5,111 | ) | (89,949 | ) | ||||
| Income (Loss) Before Income Taxes | 37,608 | 40,124 | (30,381 | ) | 47,351 | |||||||
| Provision for Income Taxes | (9,627 | ) | (9,784 | ) | 9,900 | (9,511 | ) | |||||
| Net Income (Loss) | $ | 27,981 | $ | 30,340 | $ | (20,481 | ) | $ | 37,840 | |||
| Total Assets as of September 30, 2020 | $ | 7,383,822 | $ | 5,027,836 | $ | 7,697,831 | $ | 20,109,489 | ||||
| Three Months Ended September 30, 2019 1 | ||||||||||||
| Net Interest Income | $ | 76,289 | $ | 46,791 | $ | 1,816 | $ | 124,896 | ||||
| Provision for Credit Losses | 3,116 | (130 | ) | 1,264 | 4,250 | |||||||
| Net Interest Income After Provision for Credit Losses | 73,173 | 46,921 | 552 | 120,646 | ||||||||
| Noninterest Income | 36,627 | 8,739 | 1,141 | 46,507 | ||||||||
| Noninterest Expense | (75,198 | ) | (21,330 | ) | (3,821 | ) | (100,349 | ) | ||||
| Income (Loss) Before Income Taxes | 34,602 | 34,330 | (2,128 | ) | 66,804 | |||||||
| Provision for Income Taxes | (8,506 | ) | (8,560 | ) | 2,314 | (14,752 | ) | |||||
| Net Income | $ | 26,096 | $ | 25,770 | $ | 186 | $ | 52,052 | ||||
| Total Assets as of September 30, 2019 1 | $ | 6,993,290 | $ | 4,145,717 | $ | 6,533,133 | $ | 17,672,140 | ||||
| 1 Certain prior period information has been reclassified to conform to current presentation. |
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||
| Business Segments Selected Financial Information | Table 13b | |||||||||||
| Consumer | Commercial | Treasury | Consolidated | |||||||||
| (dollars in thousands) | Banking | Banking | and Other | Total | ||||||||
| Nine Months Ended September 30, 2020 1 | ||||||||||||
| Net Interest Income | $ | 221,003 | $ | 144,253 | $ | 11,567 | $ | 376,823 | ||||
| Provision for Credit Losses | 8,215 | (819 | ) | 95,204 | 102,600 | |||||||
| Net Interest Income (Loss) After Provision for Credit Losses | 212,788 | 145,072 | (83,637 | ) | 274,223 | |||||||
| Noninterest Income | 93,309 | 26,483 | 19,359 | 139,151 | ||||||||
| Noninterest Expense | (210,744 | ) | (47,552 | ) | (16,857 | ) | (275,153 | ) | ||||
| Income (Loss) Before Income Taxes | 95,353 | 124,003 | (81,135 | ) | 138,221 | |||||||
| Provision for Income Taxes | (24,235 | ) | (30,278 | ) | 27,782 | (26,731 | ) | |||||
| Net Income (Loss) | $ | 71,118 | $ | 93,725 | $ | (53,353 | ) | $ | 111,490 | |||
| Total Assets as of September 30, 2020 | $ | 7,383,822 | $ | 5,027,836 | $ | 7,697,831 | $ | 20,109,489 | ||||
| Nine Months Ended September 30, 2019 1 | ||||||||||||
| Net Interest Income | $ | 229,704 | $ | 139,784 | $ | 4,342 | $ | 373,830 | ||||
| Provision for Credit Losses | 7,866 | 1,141 | 2,243 | 11,250 | ||||||||
| Net Interest Income After Provision for Credit Losses | 221,838 | 138,643 | 2,099 | 362,580 | ||||||||
| Noninterest Income | 107,072 | 22,738 | 5,826 | 135,636 | ||||||||
| Noninterest Expense | (213,168 | ) | (63,545 | ) | (9,418 | ) | (286,131 | ) | ||||
| Income Before Income Taxes | 115,742 | 97,836 | (1,493 | ) | 212,085 | |||||||
| Provision for Income Taxes | (28,745 | ) | (22,507 | ) | 6,937 | (44,315 | ) | |||||
| Net Income | $ | 86,997 | $ | 75,329 | $ | 5,444 | $ | 167,770 | ||||
| Total Assets as of September 30, 2019 1 | $ | 6,993,290 | $ | 4,145,717 | $ | 6,533,133 | $ | 17,672,140 | ||||
| 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) | 2020 | 2020 | 2020 | 2019 | 2019 | ||||||||||||||
| Quarterly Operating Results | |||||||||||||||||||
| Interest Income | |||||||||||||||||||
| Interest and Fees on Loans and Leases | $ | 103,189 | $ | 107,628 | $ | 108,210 | $ | 109,223 | $ | 110,877 | |||||||||
| Income on Investment Securities | |||||||||||||||||||
| Available-for-Sale | 14,558 | 14,576 | 16,711 | 16,158 | 17,512 | ||||||||||||||
| Held-to-Maturity | 15,967 | 16,723 | 19,252 | 18,750 | 18,796 | ||||||||||||||
| Deposits | 3 | 1 | 9 | 8 | 9 | ||||||||||||||
| Funds Sold | 149 | 92 | 546 | 723 | 656 | ||||||||||||||
| Other | 151 | 125 | 218 | 239 | 233 | ||||||||||||||
| Total Interest Income | 134,017 | 139,145 | 144,946 | 145,101 | 148,083 | ||||||||||||||
| Interest Expense | |||||||||||||||||||
| Deposits | 5,891 | 7,954 | 14,260 | 16,407 | 18,055 | ||||||||||||||
| Securities Sold Under Agreements to Repurchase | 3,622 | 4,020 | 4,025 | 4,071 | 4,257 | ||||||||||||||
| Funds Purchased | - | 18 | 72 | 25 | 146 | ||||||||||||||
| Short-Term Borrowings | 1 | 22 | 39 | - | 1 | ||||||||||||||
| Other Debt | 337 | 440 | 584 | 713 | 728 | ||||||||||||||
| Total Interest Expense | 9,851 | 12,454 | 18,980 | 21,216 | 23,187 | ||||||||||||||
| Net Interest Income | 124,166 | 126,691 | 125,966 | 123,885 | 124,896 | ||||||||||||||
| Provision for Credit Losses | 28,600 | 40,400 | 33,600 | 4,750 | 4,250 | ||||||||||||||
| Net Interest Income After Provision for Credit Losses | 95,566 | 86,291 | 92,366 | 119,135 | 120,646 | ||||||||||||||
| Noninterest Income | |||||||||||||||||||
| Trust and Asset Management | 10,752 | 10,550 | 10,915 | 11,157 | 10,930 | ||||||||||||||
| Mortgage Banking | 4,047 | 4,278 | 2,695 | 3,199 | 4,864 | ||||||||||||||
| Service Charges on Deposit Accounts | 6,027 | 5,097 | 7,451 | 7,835 | 7,592 | ||||||||||||||
| Fees, Exchange, and Other Service Charges | 12,296 | 9,417 | 13,200 | 14,533 | 14,900 | ||||||||||||||
| Investment Securities Gains (Losses), Net | (1,121 | ) | 13,216 | (970 | ) | (906 | ) | (1,469 | ) | ||||||||||
| Annuity and Insurance | 881 | 883 | 928 | 1,272 | 1,278 | ||||||||||||||
| Bank-Owned Life Insurance | 1,806 | 1,649 | 1,580 | 1,879 | 1,647 | ||||||||||||||
| Other | 7,046 | 6,178 | 10,350 | 8,733 | 6,765 | ||||||||||||||
| Total Noninterest Income | 41,734 | 51,268 | 46,149 | 47,702 | 46,507 | ||||||||||||||
| Noninterest Expense | |||||||||||||||||||
| Salaries and Benefits | 51,951 | 50,715 | 54,463 | 51,664 | 54,345 | ||||||||||||||
| Net Occupancy | 7,281 | 8,761 | 8,955 | 8,824 | 8,803 | ||||||||||||||
| Net Equipment | 9,223 | 8,195 | 8,456 | 7,930 | 7,637 | ||||||||||||||
| Data Processing | 4,691 | 4,416 | 4,788 | 4,828 | 4,676 | ||||||||||||||
| Professional Fees | 2,743 | 3,061 | 3,208 | 3,257 | 2,184 | ||||||||||||||
| FDIC Insurance | 1,282 | 1,558 | 1,456 | 1,376 | 1,257 | ||||||||||||||
| Other | 12,778 | 12,186 | 14,986 | 15,217 | 21,447 | ||||||||||||||
| Total Noninterest Expense | 89,949 | 88,892 | 96,312 | 93,096 | 100,349 | ||||||||||||||
| Income Before Provision for Income Taxes | 47,351 | 48,667 | 42,203 | 73,741 | 66,804 | ||||||||||||||
| Provision for Income Taxes | 9,511 | 9,759 | 7,461 | 15,598 | 14,752 | ||||||||||||||
| Net Income | $ | 37,840 | $ | 38,908 | $ | 34,742 | $ | 58,143 | $ | 52,052 | |||||||||
| Basic Earnings Per Share | $ | 0.95 | $ | 0.98 | $ | 0.88 | $ | 1.46 | $ | 1.30 | |||||||||
| Diluted Earnings Per Share | $ | 0.95 | $ | 0.98 | $ | 0.87 | $ | 1.45 | $ | 1.29 | |||||||||
| Balance Sheet Totals | |||||||||||||||||||
| Loans and Leases | $ | 11,793,608 | $ | 11,805,370 | $ | 11,352,780 | $ | 10,990,892 | $ | 10,881,298 | |||||||||
| Total Assets | 20,109,489 | 19,769,942 | 18,542,233 | 18,095,496 | 17,672,140 | ||||||||||||||
| Total Deposits | 17,738,883 | 17,423,155 | 16,055,361 | 15,784,482 | 15,340,752 | ||||||||||||||
| Total Shareholders' Equity | 1,361,739 | 1,352,082 | 1,327,929 | 1,286,832 | 1,291,490 | ||||||||||||||
| Performance Ratios | |||||||||||||||||||
| Return on Average Assets | 0.76 | % | 0.82 | % | 0.77 | % | 1.29 | % | 1.17 | % | |||||||||
| Return on Average Shareholders' Equity | 11.01 | 11.58 | 10.64 | 17.84 | 16.02 | ||||||||||||||
| Efficiency Ratio 1 | 54.22 | 49.95 | 55.96 | 54.26 | 58.55 | ||||||||||||||
| Net Interest Margin 2 | 2.67 | 2.83 | 2.96 | 2.95 | 3.01 | ||||||||||||||
| 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 | ||||||||||||||||||
| ($ in millions; jobs in thousands) | August 31, 2020 | December 31, 2019 | December 31, 2018 | ||||||||||||||||
| Hawaii Economic Trends | |||||||||||||||||||
| State General Fund Revenues 1 | $ | 4,406.3 | (11.1 | ) | % | $ | 7,316.5 | 5.5 | % | $ | 6,933.1 | 6.9 | % | ||||||
| General Excise and Use Tax Revenue 1 | $ | 2,118.7 | (13.3 | ) | % | $ | 3,602.2 | 5.1 | % | $ | 3,426.5 | 2.3 | % | ||||||
| Jobs 2 | 557.2 | 648.9 | 649.0 | ||||||||||||||||
August 31, | December 31, | ||||||||||||||||||
| (spot rates) | 2020 | 2019 | 2018 | ||||||||||||||||
| Unemployment 3 | |||||||||||||||||||
| Statewide, seasonally adjusted | 12.5 | % | 2.7 | % | 2.6 | % | |||||||||||||
| Oahu | 10.6 | 2.1 | 2.2 | ||||||||||||||||
| Island of Hawaii | 11.8 | 2.8 | 2.9 | ||||||||||||||||
| Maui | 20.7 | 2.2 | 2.2 | ||||||||||||||||
| Kauai | 17.8 | 2.4 | 2.3 | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||||
| (percentage change, except months of inventory) | 2020 | 2019 | 2018 | 2017 | |||||||||||||||
| Housing Trends (Single Family Oahu) 4 | |||||||||||||||||||
| Median Home Price | 3.3 | % | (0.1 | ) | % | 4.6 | % | 2.7 | % | ||||||||||
| Home Sales Volume (units) | (1.4 | ) | % | 3.9 | % | (7.7 | ) | % | 6.3 | % | |||||||||
| Months of Inventory | 1.9 | 2.5 | 2.8 | 2.1 | |||||||||||||||
| Monthly Visitor Arrivals, | Percentage Change | ||||||||||||||||||
| (in thousands) | Not Seasonally Adjusted | from Previous Year | |||||||||||||||||
| Tourism 5 | |||||||||||||||||||
| August 31, 2020 | 22.3 | (97.6 | ) | ||||||||||||||||
| July 31, 2020 | 22.6 | (97.7 | ) | ||||||||||||||||
| June 30, 2020 | 17.1 | (98.2 | ) | ||||||||||||||||
| May 31, 2020 | 9.1 | (98.9 | ) | ||||||||||||||||
| April 30, 2020 | 4.6 | (99.5 | ) | ||||||||||||||||
| March 31, 2020 | 434.9 | (53.7 | ) | ||||||||||||||||
| February 29, 2020 | 828.1 | 5.8 | |||||||||||||||||
| January 31, 2020 | 862.6 | 5.1 | |||||||||||||||||
| December 31, 2019 | 954.3 | 6.0 | |||||||||||||||||
| November 30, 2019 | 811.4 | 4.2 | |||||||||||||||||
| October 31, 2019 | 800.4 | 4.8 | |||||||||||||||||
| September 30, 2019 | 741.3 | 3.5 | |||||||||||||||||
| August 31, 2019 | 926.4 | 9.6 | |||||||||||||||||
| July 31, 2019 | 995.2 | 5.9 | |||||||||||||||||
| June 30, 2019 | 951.6 | 6.1 | |||||||||||||||||
| May 31, 2019 | 841.4 | 4.6 | |||||||||||||||||
| April 30, 2019 | 856.3 | 6.6 | |||||||||||||||||
| March 31, 2019 | 939.1 | 3.9 | |||||||||||||||||
| February 28, 2019 | 782.7 | 0.5 | |||||||||||||||||
| January 31, 2019 | 820.6 | 3.0 | |||||||||||||||||
| December 31, 2018 | 900.2 | 2.3 | |||||||||||||||||
| November 30, 2018 | 778.5 | 3.9 | |||||||||||||||||
| October 31, 2018 | 763.7 | 3.5 | |||||||||||||||||
| September 30, 2018 | 716.1 | 2.2 | |||||||||||||||||
| August 31, 2018 | 845.1 | 3.2 | |||||||||||||||||
| July 31, 2018 | 939.4 | 5.3 | |||||||||||||||||
| June 30, 2018 | 897.1 | 7.3 | |||||||||||||||||
| May 31, 2018 | 804.1 | 7.0 | |||||||||||||||||
| April 30, 2018 | 803.0 | 6.6 | |||||||||||||||||
| March 31, 2018 | 903.6 | 12.5 | |||||||||||||||||
| February 28, 2018 | 778.6 | 10.3 | |||||||||||||||||
| January 31, 2018 | 796.5 | 5.4 | |||||||||||||||||
| 1 Source: Hawaii Department of Business, Economic Development & Tourism | |||||
| 2 Source: U. S. Bureau of Labor Statistics | |||||
| 3 Source: Hawaii Department of Labor and Industrial Relations, County jobs data not seasonally adjusted. | |||||
| 4 Source: Honolulu Board of REALTORS | |||||
| 5 Source: Hawaii Tourism Authority |
View source version on businesswire.com: https://www.businesswire.com/news/home/20201026005241/en/
Contacts:
Stafford Kiguchi
Telephone: 808-694-8580
Mobile: 808-265-6367
E-mail: Stafford.Kiguchi@boh.com
