- Diluted Earnings Per Common Share $1.38
- Net Income $56.9 Million
- Board of Directors Declares Dividend of $0.70 Per Common
Share
Bank of Hawaii Corporation (NYSE: BOH) today reported diluted
earnings per common share of $1.38 for the second quarter of 2022,
compared with diluted earnings per common share of $1.32 in the
previous quarter and $1.68 in the same quarter last year. Net
income for the second quarter of 2022 was $56.9 million, up 3.7%
from the first quarter of 2022 and down 15.8% from the second
quarter of 2021. The decrease from the second quarter of 2021 was
primarily due to a smaller release of the allowance for credit
losses and lower PPP income in the current quarter and one-time
items in the second quarter of 2021.
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“Bank of Hawaii performed well during the second quarter of
2022," said Peter Ho, Chairman, President, and CEO. “Net interest
margin expanded, driven by robust core loan growth and higher
interest rates. At the same time, asset quality continued its sound
and stable trend, and capital and liquidity remained strong,
positioning us well for the future.”
Financial Highlights
- The return on average assets for the second quarter of 2022 was
1.00% compared with 0.97% in the previous quarter and 1.23% in the
same quarter of 2021.
- The return on average common equity for the second quarter of
2022 was 18.19% compared with 15.44% in the previous quarter and
19.61% in the same quarter of 2021.
- Net interest income for the second quarter of 2022 was $132.9
million, an increase of 6.1% from the first quarter of 2022 and an
increase of 7.6% from the second quarter of 2021. Net interest
margin was 2.47% in the second quarter of 2022, an increase of 13
basis points compared to the previous quarter and an increase of 10
basis points from the same quarter of 2021.
- The increase in net interest income and margin in the second
quarter of 2022 compared to prior periods was due to the higher
rate environment and continued strong loan growth.
- The second quarter of 2022 included $1.1 million of interest
recoveries.
- The provision for credit losses for the second quarter of 2022
was a net benefit of $2.5 million compared with a net benefit of
$5.5 million in the previous quarter and a net benefit of $16.1
million in the same quarter of 2021.
- Noninterest income was $42.2 million in the second quarter of
2022, a decrease of 3.2% from the previous quarter and a decrease
of 5.1% from the same quarter of 2021.
- Noninterest income in the second quarter of 2021 included a
gain of $3.7 million related to the sale of investment
securities.
- Noninterest expense was $102.9 million in the second quarter of
2022, a decrease of 0.9% from the previous quarter and an increase
of 6.6% from the same quarter of 2021.
- Compared to the same period in 2021, noninterest expense
included the impact of higher salaries and benefits and occupancy
expenses. Significant one-time items included in noninterest
expense during the second quarter of 2021 were fees related to the
early termination of FHLB advances and repurchase agreements of
$3.2 million offset by a gain on the sale of property of $3.1
million.
- The effective tax rate for the second quarter of 2022 was
23.80% compared with 22.15% in the previous quarter and 22.84%
during the same quarter of 2021.
Asset Quality
The Company’s overall asset quality continued to remain strong
during the second quarter of 2022.
- Total non-performing assets were $15.5 million at June 30,
2022, down by $4.5 million from March 31, 2022 and down $3.5
million from June 30, 2021. Non-performing assets as a percentage
of total loans and leases and foreclosed real estate were 0.12% at
the end of the quarter, a decrease of 4 basis points from the end
of both the prior quarter and same quarter of 2021.
- Net loan and lease charge-offs during the second quarter of
2022 were $0.6 million or 0.02% annualized of total average loans
and leases outstanding.
- Net loan and lease charge-offs for the second quarter of 2022
were comprised of charge-offs of $3.3 million partially offset by
recoveries of $2.7 million.
- Compared to the prior quarter, net loan and lease charge-offs
decreased by $0.9 million or 3 basis points annualized on total
average loans and leases outstanding.
- Compared to the same quarter of 2021, net loan and lease
charge-offs decreased by $0.6 million or 2 basis points annualized
on total average loans and leases outstanding.
- The allowance for credit losses on loans and leases was $148.5
million at June 30, 2022, a decrease of $3.5 million from March 31,
2022 and a decrease of $31.9 million from June 30, 2021. The ratio
of the allowance for credit losses to total loans and leases
outstanding was 1.15% at the end of the quarter, down 6 basis
points from the end of the prior quarter and down 35 basis points
from the end of the same quarter of 2021.
Balance Sheet
- Total assets were $23.2 billion at June 30, 2022, an increase
of 1.0% from March 31, 2022 and an increase of 2.5% from June 30,
2021.
- The investment securities portfolio was $8.3 billion at June
30, 2022, a decrease of 5.4% from March 31, 2022 and an increase of
2.3% from June 30, 2021.
- 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 $13.0 billion at June 30, 2022, an
increase of 3.2% from March 31, 2022 and an increase of 7.6% from
June 30, 2021.
- Total loans and leases excluding PPP loans were $12.9 billion
at June 30, 2022, an increase of 3.5% from March 31, 2022 and an
increase of 12.1% from June 30, 2021.
- Total deposits reached a new record high of $21.0 billion at
June 30, 2022, an increase of 1.5% from March 31, 2022 and an
increase of 4.2% from June 30, 2021.
Capital and Dividends
- The Tier 1 Capital Ratio was 13.01% at June 30, 2022 compared
with 13.22% at March 31, 2022 and 13.87% at June 30, 2021.
- The Tier 1 Leverage Ratio was 7.29% at June 30, 2022 compared
with 7.30% at March 31, 2022 and 7.31% at June 30, 2021.
- The Company repurchased 131.0 thousand shares of common stock
at a total cost of $10.0 million under its share repurchase program
in the second quarter of 2022 at an average cost of $75.94 per
share repurchased.
- Total remaining buyback authority under the share repurchase
program was $65.8 million at June 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 September 15, 2022 to
shareholders of record at the close of business on August 31,
2022.
- On July 5, 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 August
1, 2022 to shareholders of record of the preferred stock at the
close of business on July 18, 2022.
Conference Call
Information
The Company will review its second 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 Hawaii Corporation's website,
www.boh.com.
- The webcast can be accessed via the link below:
https://register.vevent.com/register/BI5cab369e40f24955998dbcc8ff22bf70.
- A replay of the conference call will be available for one year
beginning approximately 11:00 a.m. Hawaii Time on Monday, July 25,
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 Hawaii Corporation's
Annual Report on Form 10-K for the year ended December 31, 2021 and
its Form 10-Q for the fiscal quarter ended March 31, 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 Hawaii 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 Hawaii Corporation, see the Company’s web site,
www.boh.com.
Bank of Hawaii Corporation and
Subsidiaries
Financial Highlights
Table 1
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
(dollars in thousands, except per share amounts)
2022
2022
2021
2022
2021
For the Period: Operating
Results Net Interest Income
$
132,902
$
125,263
$
123,514
$
258,165
$
244,083
Provision for Credit Losses
(2,500
)
(5,500
)
(16,100
)
(8,000
)
(30,400
)
Total Noninterest Income
42,158
43,551
44,431
85,709
87,401
Total Noninterest Expense
102,939
103,874
96,527
206,813
195,392
Net Income
56,862
54,834
67,533
111,696
127,482
Basic Earnings Per Common Share
1.38
1.33
1.69
2.71
3.20
Diluted Earnings Per Common Share
1.38
1.32
1.68
2.70
3.18
Dividends Declared Per Common Share
0.70
0.70
0.67
1.40
1.34
Performance Ratios Return on Average Assets
1.00
%
0.97
%
1.23
%
0.98
%
1.19
%
Return on Average Shareholders' Equity
16.40
14.18
19.17
15.23
18.43
Return on Average Common Equity 1
18.19
15.44
19.61
16.73
18.64
Efficiency Ratio 2
58.80
61.53
57.47
60.14
58.94
Net Interest Margin 3
2.47
2.34
2.37
2.41
2.40
Dividend Payout Ratio 4
50.72
52.63
39.64
51.66
41.88
Average Shareholders' Equity to Average Assets
6.08
6.87
6.40
6.47
6.45
Average Balances Average Loans and Leases
$
12,700,825
$
12,290,402
$
12,096,308
$
12,496,747
$
12,024,844
Average Assets
22,891,262
22,847,488
22,073,569
22,869,496
21,614,669
Average Deposits
20,569,363
20,426,076
19,698,285
20,498,115
19,184,607
Average Shareholders' Equity
1,390,653
1,568,725
1,412,924
1,479,197
1,395,197
Per Share of Common Stock Book Value 1
$
29.09
$
31.50
$
34.68
$
29.09
$
34.68
Tangible Book Value 1
28.30
30.71
33.91
28.30
33.91
Market Value Closing
74.40
83.92
84.22
74.40
84.22
High
84.93
92.38
95.95
92.38
99.10
Low
70.97
79.60
81.23
70.97
75.65
June 30,
March 31,
December 31,
June 30,
2022
2022
2021
2021
As of Period End: Balance
Sheet Totals Loans and Leases
$
12,951,573
$
12,544,492
$
12,259,076
$
12,041,378
Total Assets
23,232,699
23,000,317
22,784,941
22,672,183
Total Deposits
21,025,681
20,716,287
20,360,108
20,169,709
Other Debt
10,343
10,367
10,391
10,437
Total Shareholders' Equity
1,348,746
1,448,885
1,611,611
1,583,531
Asset Quality Non-Performing Assets
$
15,493
$
19,979
$
18,966
$
18,974
Allowance for Credit Losses - Loans and Leases
148,512
152,028
157,821
180,385
Allowance to Loans and Leases Outstanding 5
1.15
%
1.21
%
1.29
%
1.50
%
Capital Ratios 6 Common Equity Tier 1 Capital Ratio
11.66
%
11.83
%
12.12
%
12.36
%
Tier 1 Capital Ratio
13.01
13.22
13.56
13.87
Total Capital Ratio
14.14
14.41
14.81
15.13
Tier 1 Leverage Ratio
7.29
7.30
7.32
7.31
Total Shareholders' Equity to Total Assets
5.81
6.30
7.07
6.98
Tangible Common Equity to Tangible Assets 1, 7
4.90
5.39
6.15
6.06
Tangible Common Equity to Risk-Weighted Assets 1, 7
8.72
9.77
11.44
11.81
Non-Financial Data Full-Time Equivalent Employees
2,114
2,084
2,056
2,085
Branches
54
54
54
54
ATMs
310
307
307
312
1 Return on Average Common Equity
was revised from 19.60% for the three months ended June 30, 2021
and 18.63% for the six months ended June 30, 2021; Book Value was
revised from $34.80 for the three months ended and six months ended
June 30, 2021; Tangible Book Value was revised from $34.02 for the
three months ended and six months ended June 30, 2021; Tangible
Common Equity to Tangible Assets was revised from 6.08% for the
three months ended June 30, 2021; Tangible Common Equity to
Risk-Weighted Assets was revised from 11.85% for the three months
ended June 30, 2021.
2 Efficiency ratio is defined as
noninterest expense divided by total revenue (net interest income
and total noninterest income).
3 Net interest margin is defined
as net interest income, on a taxable-equivalent basis, as a
percentage of average earning assets.
4 Dividend payout ratio is
defined as dividends declared per common share divided by basic
earnings per common share.
5 The numerator comprises the
Allowance for Credit Losses - Loans and Leases.
6 Regulatory capital ratios as of
June 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
June 30,
March 31,
December 31,
June 30,
(dollars in thousands)
2022
2022
2021
2021
Total Shareholders' Equity
$
1,348,746
$
1,448,885
$
1,611,611
$
1,583,531
Less: Preferred Stock 1
180,000
180,000
180,000
180,000
Goodwill
31,517
31,517
31,517
31,517
Tangible Common Equity 1
$
1,137,229
$
1,237,368
$
1,400,094
$
1,372,014
Total Assets
23,232,699
23,000,317
22,784,941
22,672,183
Less: Goodwill
31,517
31,517
31,517
31,517
Tangible Assets
$
23,201,182
$
22,968,800
$
22,753,424
$
22,640,666
Risk-Weighted Assets, determined in accordance with
prescribed regulatory requirements 2
$
13,035,674
$
12,663,646
$
12,236,805
$
11,614,522
Total Shareholders' Equity to Total Assets
5.81
%
6.30
%
7.07
%
6.98
%
Tangible Common Equity to Tangible Assets (Non-GAAP) 1
4.90
%
5.39
%
6.15
%
6.06
%
Tier 1 Capital Ratio 1
13.01
%
13.22
%
13.56
%
13.87
%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1, 2
8.72
%
9.77
%
11.44
%
11.81
%
1 Preferred Stock was revised from $175,487 for the three
months ended June 30, 2021; Tangible Common Equity was revised from
$1,376,527 for the three months ended June 30, 2021; Tangible
Common Equity to Tangible Assets (Non-GAAP) was revised from 6.08%
for the three months ended June 30, 2021; Tangible Common Equity to
Risk-Weighted Assets (Non-GAAP) was revised from 11.85% for the
three months ended June 30, 2021. 2 Regulatory capital ratios as of
June 30, 2022 are preliminary.
Bank of Hawaii Corporation and
Subsidiaries
Consolidated Statements of
Income
Table 3
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
(dollars in thousands, except per share amounts)
2022
2022
2021
2022
2021
Interest Income Interest and Fees on Loans and Leases
$
101,663
$
94,439
$
100,894
$
196,102
$
200,193
Income on Investment Securities Available-for-Sale
17,984
17,100
16,467
35,084
32,304
Held-to-Maturity
18,838
18,701
13,576
37,539
26,876
Deposits
5
4
-
9
7
Funds Sold
719
127
260
846
397
Other
353
202
182
555
367
Total Interest Income
139,562
130,573
131,379
270,135
260,144
Interest Expense Deposits
3,535
2,353
4,152
5,888
8,481
Securities Sold Under Agreements to Repurchase
2,794
2,772
3,470
5,566
7,003
Funds Purchased
57
2
-
59
1
Short-Term Borrowings
92
-
-
92
-
Other Debt
182
183
243
365
576
Total Interest Expense
6,660
5,310
7,865
11,970
16,061
Net Interest Income
132,902
125,263
123,514
258,165
244,083
Provision for Credit Losses
(2,500
)
(5,500
)
(16,100
)
(8,000
)
(30,400
)
Net Interest Income After Provision for Credit Losses
135,402
130,763
139,614
266,165
274,483
Noninterest Income Trust and Asset Management
11,457
11,276
11,682
22,733
22,960
Mortgage Banking
1,247
2,740
3,058
3,987
8,920
Service Charges on Deposit Accounts
7,309
7,272
6,065
14,581
12,193
Fees, Exchange, and Other Service Charges
14,193
12,952
13,807
27,145
27,414
Investment Securities Losses, Net
(1,295
)
(1,545
)
2,423
(2,840
)
1,220
Annuity and Insurance
870
791
911
1,661
1,613
Bank-Owned Life Insurance
2,658
2,349
2,063
5,007
3,980
Other
5,719
7,716
4,422
13,435
9,101
Total Noninterest Income
42,158
43,551
44,431
85,709
87,401
Noninterest Expense Salaries and Benefits
57,769
59,924
56,161
117,693
112,412
Net Occupancy
9,930
9,826
5,047
19,756
14,137
Net Equipment
9,543
9,153
8,796
18,696
17,674
Data Processing
4,607
4,560
4,557
9,167
10,879
Professional Fees
3,542
3,258
3,114
6,800
6,520
FDIC Insurance
1,590
1,502
1,669
3,092
3,323
Other
15,958
15,651
17,183
31,609
30,447
Total Noninterest Expense
102,939
103,874
96,527
206,813
195,392
Income Before Provision for Income Taxes
74,621
70,440
87,518
145,061
166,492
Provision for Income Taxes
17,759
15,606
19,985
33,365
39,010
Net Income
$
56,862
$
54,834
$
67,533
$
111,696
$
127,482
Preferred Stock Dividends
1,969
1,969
-
3,938
-
Net Income Available to Common Shareholders
$
54,893
$
52,865
$
67,533
$
107,758
$
127,482
Basic Earnings Per Common Share
$
1.38
$
1.33
$
1.69
$
2.71
$
3.20
Diluted Earnings Per Common Share
$
1.38
$
1.32
$
1.68
$
2.70
$
3.18
Dividends Declared Per Common Share
$
0.70
$
0.70
$
0.67
$
1.40
$
1.34
Basic Weighted Average Common Shares
39,693,593
39,752,679
39,902,583
39,722,985
39,865,268
Diluted Weighted Average Common Shares
39,842,608
39,956,391
40,122,905
39,896,700
40,096,527
Bank of Hawaii Corporation and
Subsidiaries
Consolidated Statements of
Comprehensive Income (Loss)
Table 4
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
(dollars in thousands)
2022
2022
2021
2022
2021
Net Income
$
56,862
$
54,834
$
67,533
$
111,696
$
127,482
Other Comprehensive Loss, Net of Tax: Net Unrealized Losses on
Investment Securities
(122,647
)
(180,124
)
(123
)
(302,771
)
(50,173
)
Defined Benefit Plans
352
353
442
705
883
Other Comprehensive Income (Loss)
(122,295
)
(179,771
)
319
(302,066
)
(49,290
)
Comprehensive Income (Loss)
$
(65,433
)
$
(124,937
)
$
67,852
$
(190,370
)
$
78,192
Bank of Hawaii Corporation and
Subsidiaries
Consolidated Statements of
Condition
Table 5
June 30,
March 31,
December 31,
June 30,
(dollars in thousands)
2022
2022
2021
2021
Assets Interest-Bearing Deposits in Other Banks
$
2,264
$
2,488
$
2,571
$
2,584
Funds Sold
576,430
356,373
361,536
909,730
Investment Securities Available-for-Sale
3,955,476
4,258,534
4,276,056
4,522,941
Held-to-Maturity (Fair Value of $3,823,739; $4,171,262; $4,646,619;
and $3,965,117)
4,321,693
4,489,615
4,694,780
3,947,613
Loans Held for Sale
4,514
5,293
26,746
47,490
Loans and Leases
12,951,573
12,544,492
12,259,076
12,041,378
Allowance for Credit Losses
(148,512
)
(152,028
)
(157,821
)
(180,385
)
Net Loans and Leases
12,803,061
12,392,464
12,101,255
11,860,993
Total Earning Assets
21,663,438
21,504,767
21,462,944
21,291,351
Cash and Due from Banks
260,672
236,193
196,327
269,153
Premises and Equipment, Net
202,063
199,743
199,393
198,508
Operating Lease Right-of-Use Assets
91,901
93,563
95,621
97,264
Accrued Interest Receivable
47,141
45,392
45,242
47,046
Foreclosed Real Estate
2,332
2,332
2,332
2,332
Mortgage Servicing Rights
23,540
23,968
22,251
21,473
Goodwill
31,517
31,517
31,517
31,517
Bank-Owned Life Insurance
448,925
446,926
344,587
292,805
Other Assets
461,170
415,916
384,727
420,734
Total Assets
$
23,232,699
$
23,000,317
$
22,784,941
$
22,672,183
Liabilities Deposits Noninterest-Bearing Demand
$
7,374,055
$
7,500,741
$
7,275,287
$
6,570,232
Interest-Bearing Demand
4,339,520
4,591,178
4,628,567
4,498,825
Savings
8,054,899
7,701,849
7,456,165
7,704,575
Time
1,257,207
922,519
1,000,089
1,396,077
Total Deposits
21,025,681
20,716,287
20,360,108
20,169,709
Securities Sold Under Agreements to Repurchase
425,490
450,490
450,490
550,490
Other Debt
10,343
10,367
10,391
10,437
Operating Lease Liabilities
99,722
101,274
103,210
105,380
Retirement Benefits Payable
37,532
38,008
38,494
50,260
Accrued Interest Payable
2,545
2,545
2,499
3,879
Taxes Payable
10,607
17,265
11,901
11,844
Other Liabilities
272,033
215,196
196,237
186,653
Total Liabilities
21,883,953
21,551,432
21,173,330
21,088,652
Shareholders' Equity Preferred Stock ($.01 par value;
authorized 180,000 shares; issued / outstanding: June 30, 2022;
March 31, 2022; December 31, 2021;
180,000
180,000
180,000
180,000
and June 30, 2021 - 180,000) Common Stock ($.01 par value;
authorized 500,000,000 shares; issued / outstanding: June 30, 2022
- 58,727,909 / 40,182,659; March 31, 2022 - 58,717,811 /
40,288,365; December 31, 2021 - 58,554,669 / 40,253,193;
582
582
581
580
and June 30, 2021 - 58,557,754 / 40,465,482) Capital Surplus
611,694
607,061
602,508
594,261
Accumulated Other Comprehensive Loss
(368,448
)
(246,153
)
(66,382
)
(41,468
)
Retained Earnings
2,002,005
1,974,790
1,950,375
1,884,431
Treasury Stock, at Cost (Shares: June 30, 2022 - 18,545,250; March
31, 2022 - 18,429,446; December 31, 2021 - 18,301,476; and June 30,
2021 - 18,092,272)
(1,077,087
)
(1,067,395
)
(1,055,471
)
(1,034,273
)
Total Shareholders' Equity
1,348,746
1,448,885
1,611,611
1,583,531
Total Liabilities and Shareholders' Equity
$
23,232,699
$
23,000,317
$
22,784,941
$
22,672,183
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
-
-
-
-
-
-
111,696
-
111,696
Other Comprehensive Loss
-
-
-
-
-
(302,066
)
-
-
(302,066
)
Share-Based Compensation
-
-
-
-
8,172
-
-
-
8,172
Common Stock Issued under Purchase and Equity Compensation Plans
-
-
228,225
1
1,014
-
346
2,697
4,058
Common Stock Repurchased
-
-
(298,759
)
-
-
-
-
(24,313
)
(24,313
)
Cash Dividends Declared Common Stock ($1.40 per share)
-
-
-
-
-
-
(56,474
)
-
(56,474
)
Cash Dividends Declared Preferred Stock
-
-
-
-
-
-
(3,938
)
-
(3,938
)
Balance as of June 30, 2022
180,000
$
180,000
40,182,659
$
582
$
611,694
$
(368,448
)
$
2,002,005
$
(1,077,087
)
$
1,348,746
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
-
-
-
-
-
-
127,482
-
127,482
Other Comprehensive Loss
-
-
-
-
-
(49,290
)
-
-
(49,290
)
Share-Based Compensation
-
-
-
-
6,122
-
-
-
6,122
Preferred Stock Issued, Net
180,000
180,000
-
-
(4,513
)
-
-
-
175,487
Common Stock Issued under Purchase and Equity Compensation Plans
-
-
383,326
-
1,292
-
(891
)
6,259
6,660
Common Stock Repurchased
-
-
(37,156
)
-
-
-
-
(3,298
)
(3,298
)
Cash Dividends Declared Common Stock ($1.34 per share)
-
-
-
-
-
-
(54,139
)
-
(54,139
)
Balance as of June 30, 2021
180,000
$
180,000
40,465,482
$
580
$
594,261
$
(41,468
)
$
1,884,431
$
(1,034,273
)
$
1,583,531
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
June 30, 2022
March 31, 2022
June 30, 2021
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
$
3.5
$
-
0.59
%
$
3.4
$
-
0.45
%
$
2.2
$
-
0.04
%
Funds Sold
273.5
0.7
1.04
238.5
0.1
0.21
946.2
0.3
0.11
Investment Securities Available-for-Sale Taxable
4,123.1
18.0
1.74
4,399.9
17.1
1.56
4,290.8
16.3
1.53
Non-Taxable
2.9
-
1.99
3.0
-
1.93
12.3
0.1
4.27
Held-to-Maturity Taxable
4,377.0
18.7
1.71
4,567.4
18.6
1.63
3,496.2
13.4
1.53
Non-Taxable
35.7
0.2
2.10
35.8
0.2
2.10
41.5
0.3
2.53
Total Investment Securities
8,538.7
36.9
1.73
9,006.1
35.9
1.59
7,840.8
30.1
1.54
Loans Held for Sale
6.3
0.1
4.06
13.7
0.1
2.78
25.7
0.2
2.86
Loans and Leases 2 Commercial and Industrial
1,330.0
9.9
2.99
1,332.9
9.0
2.73
1,271.4
9.3
2.93
Paycheck Protection Program
38.7
0.5
5.26
89.0
1.8
8.33
663.1
7.5
4.55
Commercial Mortgage
3,357.2
26.2
3.13
3,158.8
21.7
2.80
2,883.5
21.3
2.96
Construction
222.6
2.4
4.39
227.6
2.1
3.68
285.6
2.6
3.66
Commercial Lease Financing
94.2
0.3
1.44
98.8
0.4
1.45
105.7
0.4
1.54
Residential Mortgage
4,445.7
36.4
3.26
4,343.3
34.9
3.21
4,234.3
35.6
3.35
Home Equity
2,032.9
14.4
2.85
1,898.9
13.3
2.83
1,573.4
12.1
3.09
Automobile
759.1
6.1
3.20
737.4
5.9
3.23
710.4
6.1
3.45
Other 3
420.4
5.6
5.38
403.7
5.5
5.47
368.9
6.0
6.53
Total Loans and Leases
12,700.8
101.8
3.21
12,290.4
94.6
3.10
12,096.3
100.9
3.34
Other
38.2
0.3
3.70
36.7
0.2
2.21
32.3
0.2
2.26
Total Earning Assets 4
21,561.0
139.8
2.60
21,588.8
130.9
2.44
20,943.5
131.7
2.52
Cash and Due from Banks
238.4
233.3
256.1
Other Assets
1,091.9
1,025.4
874.0
Total Assets
$
22,891.3
$
22,847.5
$
22,073.6
Interest-Bearing Liabilities Interest-Bearing
Deposits Demand
$
4,442.2
0.7
0.06
$
4,655.4
0.5
0.04
$
4,452.4
0.7
0.07
Savings
7,692.8
1.9
0.10
7,540.6
1.1
0.06
7,533.0
1.8
0.09
Time
950.4
0.9
0.40
971.5
0.8
0.34
1,418.4
1.7
0.47
Total Interest-Bearing Deposits
13,085.4
3.5
0.11
13,167.5
2.4
0.07
13,403.8
4.2
0.12
Short-Term Borrowings
59.8
0.1
0.98
6.8
-
0.11
-
-
-
Securities Sold Under Agreements to Repurchase
447.7
2.8
2.47
450.5
2.8
2.46
570.3
3.5
2.41
Other Debt
10.4
0.3
7.05
10.4
0.2
7.05
30.2
0.2
3.22
Total Interest-Bearing Liabilities
13,603.3
6.7
0.20
13,635.2
5.4
0.16
14,004.3
7.9
0.22
Net Interest Income
$
133.1
$
125.5
$
123.8
Interest Rate Spread
2.40
%
2.28
%
2.30
%
Net Interest Margin
2.47
%
2.34
%
2.37
%
Noninterest-Bearing Demand Deposits
7,484.0
7,258.6
6,294.5
Other Liabilities
413.3
385.0
361.9
Shareholders' Equity
1,390.7
1,568.7
1,412.9
Total Liabilities and Shareholders' Equity
$
22,891.3
$
22,847.5
$
22,073.6
1 Due to rounding, the amounts
presented in this table may not tie to other amounts presented
elsewhere in this report.
2 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.
3 Comprised of other consumer
revolving credit, installment, and consumer lease financing.
4 Interest income includes
taxable-equivalent basis adjustments, based upon a federal
statutory tax rate of 21%, of $221,000, $254,000, and $269,000 for
the three months ended June 30, 2022, March 31, 2022, and June 30,
2021, respectively.
Bank of Hawaii Corporation and
Subsidiaries
Average Balances and Interest
Rates - Taxable-Equivalent Basis 1
Table 7b
Six Months Ended
Six Months Ended
June 30, 2022
June 30, 2021
Average
Income/
Yield/
Average
Income/
Yield/
(dollars in millions)
Balance
Expense
Rate
Balance
Expense
Rate
Earning Assets Interest-Bearing Deposits in Other Banks
$
3.5
$
-
0.52
%
$
2.7
$
-
0.56
%
Funds Sold
256.1
0.8
0.66
749.5
0.4
0.11
Investment Securities Available-for-Sale Taxable
4,260.6
35.1
1.65
4,150.2
32.1
1.55
Non-Taxable
3.0
-
1.96
12.3
0.3
4.27
Held-to-Maturity Taxable
4,471.7
37.2
1.67
3,441.3
26.5
1.54
Non-Taxable
35.8
0.4
2.10
39.8
0.5
2.54
Total Investment Securities
8,771.1
72.7
1.66
7,643.6
59.4
1.55
Loans Held for Sale
10.0
0.2
3.19
25.9
0.4
2.81
Loans and Leases 2 Commercial and Industrial
1,331.5
18.9
2.86
1,295.4
19.0
2.96
Paycheck Protection Program
63.7
2.3
7.39
624.1
12.1
3.91
Commercial Mortgage
3,258.5
48.0
2.97
2,864.9
42.6
3.00
Construction
225.1
4.5
4.03
274.9
4.9
3.57
Commercial Lease Financing
96.5
0.7
1.44
106.1
0.8
1.48
Residential Mortgage
4,394.8
71.2
3.24
4,190.7
71.4
3.41
Home Equity
1,966.3
27.7
2.84
1,583.7
24.7
3.14
Automobile
748.3
11.9
3.22
709.3
12.2
3.48
Other 3
412.1
11.1
5.42
375.7
12.4
6.64
Total Loans and Leases
12,496.8
196.3
3.16
12,024.8
200.1
3.35
Other
37.3
0.6
2.97
32.9
0.4
2.24
Total Earning Assets 4
21,574.8
270.6
2.52
20,479.4
260.7
2.56
Cash and Due from Banks
235.8
263.4
Other Assets
1,058.9
871.9
Total Assets
$
22,869.5
$
21,614.7
Interest-Bearing Liabilities Interest-Bearing
Deposits Demand
$
4,548.2
1.2
0.05
$
4,320.2
1.3
0.06
Savings
7,617.1
2.9
0.08
7,276.2
3.3
0.09
Time
960.9
1.8
0.37
1,523.6
3.9
0.52
Total Interest-Bearing Deposits
13,126.2
5.9
0.09
13,120.0
8.5
0.13
Short-Term Borrowings
33.5
0.2
0.89
1.2
-
0.09
Securities Sold Under Agreements to Repurchase
449.1
5.6
2.47
585.3
7.0
2.38
Other Debt
10.4
0.3
7.05
45.3
0.6
2.56
Total Interest-Bearing Liabilities
13,619.2
12.0
0.18
13,751.8
16.1
0.23
Net Interest Income
$
258.6
$
244.6
Interest Rate Spread
2.34
%
2.33
%
Net Interest Margin
2.41
%
2.40
%
Noninterest-Bearing Demand Deposits
7,371.9
6,064.6
Other Liabilities
399.2
403.1
Shareholders' Equity
1,479.2
1,395.2
Total Liabilities and Shareholders' Equity
$
22,869.5
$
21,614.7
1 Due to rounding, the amounts
presented in this table may not tie to other amounts presented
elsewhere in this report.
2 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.
3 Comprised of other consumer
revolving credit, installment, and consumer lease financing.
4 Interest income includes
taxable-equivalent basis adjustments, based upon a federal
statutory tax rate of 21%, of $475,000 and $521,000 for six months
ended June 30, 2022 and June 30, 2021, respectively.
Bank of Hawaii Corporation and
Subsidiaries
Analysis of Change in Net
Interest Income - Taxable-Equivalent Basis
Table 8a
Three Months Ended June 30,
2022
Compared to March 31,
2022
(dollars in millions)
Volume 1
Rate 1
Total
Change in Interest Income: Funds Sold
$
-
$
0.6
$
0.6
Investment Securities Available-for-Sale Taxable
(1.1
)
2.0
0.9
Held-to-Maturity Taxable
(0.8
)
0.9
0.1
Total Investment Securities
(1.9
)
2.9
1.0
Loans and Leases Commercial and Industrial
-
0.9
0.9
Paycheck Protection Program
(0.8
)
(0.5
)
(1.3
)
Commercial Mortgage
1.6
2.9
4.5
Construction
-
0.3
0.3
Commercial Lease Financing
(0.1
)
-
(0.1
)
Residential Mortgage
0.9
0.6
1.5
Home Equity
1.0
0.1
1.1
Automobile
0.2
-
0.2
Other 2
0.2
(0.1
)
0.1
Total Loans and Leases
3.0
4.2
7.2
Other
-
0.1
0.1
Total Change in Interest Income
1.1
7.8
8.9
Change in Interest Expense: Interest-Bearing Deposits Demand
-
0.2
0.2
Savings
-
0.8
0.8
Time
-
0.1
0.1
Total Interest-Bearing Deposits
-
1.1
1.1
Short-Term Borrowings
-
0.1
0.1
Other Debt
-
0.1
0.1
Total Change in Interest Expense
-
1.3
1.3
Change in Net Interest Income
$
1.1
$
6.5
$
7.6
1 The change in interest income
and expense not solely due to changes in volume or rate has been
allocated on a pro-rata basis to the volume and rate columns.
2 Comprised of other consumer
revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and
Subsidiaries
Analysis of Change in Net
Interest Income - Taxable-Equivalent Basis
Table 8b
Three Months Ended June 30,
2022
Compared to June 30,
2021
(dollars in millions)
Volume 1
Rate 1
Total
Change in Interest Income: Funds Sold
$
(0.3
)
$
0.7
$
0.4
Investment Securities Available-for-Sale Taxable
(0.6
)
2.3
1.7
Non-Taxable
(0.1
)
-
(0.1
)
Held-to-Maturity Taxable
3.6
1.7
5.3
Non-Taxable
-
(0.1
)
(0.1
)
Total Investment Securities
2.9
3.9
6.8
Loans Held for Sale
(0.2
)
0.1
(0.1
)
Loans and Leases Commercial and Industrial
0.4
0.2
0.6
Paycheck Protection Program
(8.0
)
1.0
(7.0
)
Commercial Mortgage
3.7
1.2
4.9
Construction
(0.7
)
0.5
(0.2
)
Commercial Lease Financing
-
(0.1
)
(0.1
)
Residential Mortgage
1.8
(1.0
)
0.8
Home Equity
3.3
(1.0
)
2.3
Automobile
0.4
(0.4
)
-
Other 2
0.8
(1.2
)
(0.4
)
Total Loans and Leases
1.7
(0.8
)
0.9
Other
-
0.1
0.1
Total Change in Interest Income
4.1
4.0
8.1
Change in Interest Expense: Interest-Bearing Deposits
Savings
-
0.1
0.1
Time
(0.5
)
(0.3
)
(0.8
)
Total Interest-Bearing Deposits
(0.5
)
(0.2
)
(0.7
)
Short-Term Borrowings
0.1
-
0.1
Securities Sold Under Agreements to Repurchase
(0.8
)
0.1
(0.7
)
Other Debt
(0.1
)
0.2
0.1
Total Change in Interest Expense
(1.3
)
0.1
(1.2
)
Change in Net Interest Income
$
5.4
$
3.9
$
9.3
1 The change in interest income
and expense not solely due to changes in volume or rate has been
allocated on a pro-rata basis to the volume and rate columns.
2 Comprised of other consumer
revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and
Subsidiaries
Analysis of Change in Net
Interest Income - Taxable-Equivalent Basis
Table 8c
Six Months Ended June 30,
2022
Compared to June 30,
2021
(dollars in millions)
Volume 1
Rate 1
Total
Change in Interest Income: Funds Sold
$
(0.4
)
$
0.8
$
0.4
Investment Securities Available-for-Sale Taxable
0.9
2.1
3.0
Non-Taxable
(0.2
)
(0.1
)
(0.3
)
Held-to-Maturity Taxable
8.4
2.3
10.7
Non-Taxable
-
(0.1
)
(0.1
)
Total Investment Securities
9.1
4.2
13.3
Loans Held for Sale
(0.2
)
-
(0.2
)
Loans and Leases Commercial and Industrial
0.6
(0.7
)
(0.1
)
Paycheck Protection Program
(15.8
)
6.0
(9.8
)
Commercial Mortgage
5.9
(0.5
)
5.4
Construction
(1.0
)
0.6
(0.4
)
Commercial Lease Financing
-
(0.1
)
(0.1
)
Residential Mortgage
3.4
(3.6
)
(0.2
)
Home Equity
5.5
(2.5
)
3.0
Automobile
0.7
(1.0
)
(0.3
)
Other 2
1.1
(2.4
)
(1.3
)
Total Loans and Leases
0.4
(4.2
)
(3.8
)
Other
0.1
0.1
0.2
Total Change in Interest Income
9.0
0.9
9.9
Change in Interest Expense: Interest-Bearing Deposits Demand
0.1
(0.2
)
(0.1
)
Savings
0.1
(0.5
)
(0.4
)
Time
(1.2
)
(0.9
)
(2.1
)
Total Interest-Bearing Deposits
(1.0
)
(1.6
)
(2.6
)
Short-Term Borrowings
0.2
-
0.2
Securities Sold Under Agreements to Repurchase
(1.6
)
0.2
(1.4
)
Other Debt
(0.8
)
0.5
(0.3
)
Total Change in Interest Expense
(3.2
)
(0.9
)
(4.1
)
Change in Net Interest Income
$
12.2
$
1.8
$
14.0
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
Six Months Ended
June 30,
March 31,
June 30,
June 30,
(dollars in thousands)
2022
2022
2021
2022
2021
Salaries
$
36,721
$
34,932
$
33,413
$
71,653
$
64,982
Incentive Compensation
6,073
6,111
5,172
12,184
11,086
Share-Based Compensation
3,962
3,799
3,174
7,761
5,758
Commission Expense
1,232
1,641
2,599
2,873
5,035
Retirement and Other Benefits
4,036
4,693
5,289
8,729
10,806
Payroll Taxes
3,034
4,944
3,026
7,978
6,994
Medical, Dental, and Life Insurance
2,591
3,234
3,204
5,825
5,628
Separation Expense
120
570
284
690
2,123
Total Salaries and Benefits
$
57,769
$
59,924
$
56,161
$
117,693
$
112,412
Bank of Hawaii Corporation and
Subsidiaries
Loan and Lease Portfolio
Balances
Table 10
June 30,
March 31,
December 31,
September 30,
June 30,
(dollars in thousands)
2022
2022
2021
2021
2021
Commercial Commercial and Industrial
$
1,323,830
$
1,354,757
$
1,361,921
$
1,325,446
$
1,257,305
Paycheck Protection Program
31,964
57,809
126,779
268,480
513,513
Commercial Mortgage
3,464,126
3,257,689
3,152,130
2,994,520
2,944,435
Construction
246,177
248,363
220,254
296,052
277,393
Lease Financing
89,535
98,107
105,108
107,526
110,500
Total Commercial
5,155,632
5,016,725
4,966,192
4,992,024
5,103,146
Consumer Residential Mortgage
4,486,571
4,405,718
4,309,602
4,272,540
4,264,180
Home Equity
2,101,612
1,958,285
1,836,588
1,680,229
1,594,781
Automobile
775,065
742,934
736,565
727,234
714,729
Other 1
432,693
420,830
410,129
400,723
364,542
Total Consumer
7,795,941
7,527,767
7,292,884
7,080,726
6,938,232
Total Loans and Leases
$
12,951,573
$
12,544,492
$
12,259,076
$
12,072,750
$
12,041,378
Deposits
June 30,
March 31,
December 31,
September 30,
June 30,
(dollars in thousands)
2022
2022
2021
2021
2021
Consumer
$
10,554,121
$
10,654,192
$
10,438,844
$
10,150,199
$
9,848,285
Commercial
8,824,609
8,818,477
8,641,932
8,767,733
8,675,909
Public and Other
1,646,951
1,243,618
1,279,332
1,575,746
1,645,515
Total Deposits
$
21,025,681
$
20,716,287
$
20,360,108
$
20,493,678
$
20,169,709
1 Comprised of other revolving
credit, installment, and lease financing.
Bank of Hawaii Corporation and
Subsidiaries
Non-Performing Assets and
Accruing Loans and Leases Past Due 90 Days or More
Table 11
June 30,
March 31,
December 31,
September 30,
June 30,
(dollars in thousands)
2022
2022
2021
2021
2021
Non-Performing Assets Non-Accrual Loans and Leases
Commercial Commercial and Industrial
$
85
$
99
$
243
$
209
$
258
Commercial Mortgage
3,462
8,065
8,205
8,309
8,413
Total Commercial
3,547
8,164
8,448
8,518
8,671
Consumer Residential Mortgage
5,179
3,845
3,305
4,348
2,437
Home Equity
4,435
5,638
4,881
5,422
5,534
Total Consumer
9,614
9,483
8,186
9,770
7,971
Total Non-Accrual Loans and Leases
13,161
17,647
16,634
18,288
16,642
Foreclosed Real Estate
2,332
2,332
2,332
2,332
2,332
Total Non-Performing Assets
$
15,493
$
19,979
$
18,966
$
20,620
$
18,974
Accruing Loans and Leases Past Due 90 Days or More
Commercial Commercial and Industrial
$
-
$
22
$
-
$
-
$
-
Total Commercial
-
22
-
-
-
Consumer Residential Mortgage
2,638
4,113
3,159
4,776
4,069
Home Equity
2,029
2,722
3,456
2,946
4,498
Automobile
359
504
729
395
277
Other 1
508
649
426
593
434
Total Consumer
5,534
7,988
7,770
8,710
9,278
Total Accruing Loans and Leases Past Due 90 Days or More
$
5,534
$
8,010
$
7,770
$
8,710
$
9,278
Restructured Loans on Accrual Status and Not Past Due 90
Days or More
$
46,024
$
54,136
$
60,519
$
62,787
$
74,926
Total Loans and Leases
$
12,951,573
$
12,544,492
$
12,259,076
$
12,072,750
$
12,041,378
Ratio of Non-Accrual Loans and Leases to Total Loans and
Leases
0.10
%
0.14
%
0.14
%
0.15
%
0.14
%
Ratio of Non-Performing Assets to Total Loans and Leases and
Foreclosed Real Estate
0.12
%
0.16
%
0.15
%
0.17
%
0.16
%
Ratio of Non-Performing Assets to Total Assets
0.06
%
0.07
%
0.07
%
0.08
%
0.07
%
Ratio of Commercial Non-Performing Assets to Total
Commercial Loans and Leases and Commercial Foreclosed Real Estate
0.07
%
0.16
%
0.17
%
0.17
%
0.17
%
Ratio of Consumer Non-Performing Assets to Total Consumer
Loans and Leases and Consumer Foreclosed Real Estate
0.15
%
0.16
%
0.14
%
0.17
%
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
0.16
%
0.22
%
0.22
%
0.24
%
0.23
%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter
$
19,979
$
18,966
$
20,620
$
18,974
$
17,883
Additions
2,293
2,243
357
3,171
2,229
Reductions Payments
(5,511
)
(1,230
)
(972
)
(889
)
(722
)
Return to Accrual Status
(1,267
)
-
(1,038
)
(606
)
(416
)
Charge-offs/Write-downs
(1
)
-
(1
)
(30
)
-
Total Reductions
(6,779
)
(1,230
)
(2,011
)
(1,525
)
(1,138
)
Balance at End of Quarter
$
15,493
$
19,979
$
18,966
$
20,620
$
18,974
1 Comprised of other revolving
credit, installment, and lease financing.
Bank of Hawaii Corporation and
Subsidiaries
Reserve for Credit
Losses
Table 12
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
(dollars in thousands)
2022
2022
2021
2022
2021
Balance at Beginning of Period
$
157,264
$
164,297
$
203,779
$
164,297
$
221,303
Loans and Leases Charged-Off Commercial Commercial and
Industrial
(233
)
(349
)
(456
)
(582
)
(704
)
Consumer Residential Mortgage
(80
)
-
(115
)
(80
)
(119
)
Home Equity
(22
)
(68
)
(107
)
(90
)
(123
)
Automobile
(1,157
)
(1,530
)
(1,209
)
(2,687
)
(3,318
)
Other 1
(1,854
)
(1,961
)
(2,422
)
(3,815
)
(6,336
)
Total Loans and Leases Charged-Off
(3,346
)
(3,908
)
(4,309
)
(7,254
)
(10,600
)
Recoveries on Loans and Leases Previously Charged-Off Commercial
Commercial and Industrial
51
369
144
420
256
Consumer Residential Mortgage
920
54
481
974
1,436
Home Equity
416
515
527
931
1,060
Automobile
684
739
1,172
1,423
2,091
Other 1
644
745
801
1,389
1,657
Total Recoveries on Loans and Leases Previously Charged-Off
2,715
2,422
3,125
5,137
6,500
Net Charged-Off - Loans and Leases
(631
)
(1,486
)
(1,184
)
(2,117
)
(4,100
)
Net Charged-Off - Accrued Interest Receivable
-
(47
)
(124
)
(47
)
(432
)
Provision for Credit Losses: Loans and Leases
(2,885
)
(4,307
)
(16,774
)
(7,192
)
(31,767
)
Accrued Interest Receivable
-
(367
)
(828
)
(367
)
(828
)
Unfunded Commitments
350
(826
)
1,502
(476
)
2,195
Balance at End of Period
$
154,098
$
157,264
$
186,371
$
154,098
$
186,371
Components Allowance for Credit Losses - Loans and
Leases
$
148,512
$
152,028
$
180,385
$
148,512
$
180,385
Allowance for Credit Losses - Accrued Interest Receivable
-
-
1,440
-
1,440
Reserve for Unfunded Commitments
5,586
5,236
4,546
5,586
4,546
Total Reserve for Credit Losses
$
154,098
$
157,264
$
186,371
$
154,098
$
186,371
Average Loans and Leases Outstanding
$
12,700,825
$
12,290,402
$
12,096,308
$
12,496,747
$
12,024,844
Ratio of Net Loans and Leases Charged-Off to Average Loans
and Leases Outstanding (annualized)
0.02
%
0.05
%
0.04
%
0.03
%
0.07
%
Ratio of Allowance for Credit Losses to Loans and Leases
Outstanding 2
1.15
%
1.21
%
1.50
%
1.15
%
1.50
%
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 June 30, 2022 Net Interest Income
$
75,868
$
49,562
$
7,472
$
132,902
Provision for Credit Losses
502
(1
)
(3,001
)
(2,500
)
Net Interest Income After Provision for Credit Losses
75,366
49,563
10,473
135,402
Noninterest Income
31,953
8,279
1,926
42,158
Noninterest Expense
(82,740
)
(17,026
)
(3,173
)
(102,939
)
Income Before Income Taxes
24,579
40,816
9,226
74,621
Provision for Income Taxes
(6,162
)
(10,145
)
(1,452
)
(17,759
)
Net Income
$
18,417
$
30,671
$
7,774
$
56,862
Total Assets as of June 30, 2022
$
8,179,647
$
5,337,656
$
9,715,396
$
23,232,699
Three Months Ended June 30, 2021 Net Interest Income
$
71,167
$
49,038
$
3,309
$
123,514
Provision for Credit Losses
987
197
(17,284
)
(16,100
)
Net Interest Income After Provision for Credit Losses
70,180
48,841
20,593
139,614
Noninterest Income
32,600
6,575
5,256
44,431
Noninterest Expense
(72,868
)
(15,742
)
(7,917
)
(96,527
)
Income Before Income Taxes
29,912
39,674
17,932
87,518
Provision for Income Taxes
(7,365
)
(9,703
)
(2,917
)
(19,985
)
Net Income
$
22,547
$
29,971
$
15,015
$
67,533
Total Assets as of June 30, 2021
$
7,479,986
$
5,127,431
$
10,064,766
$
22,672,183
Bank of Hawaii Corporation and
Subsidiaries
Business Segments Selected
Financial Information
Table 13b
Consumer
Commercial
Treasury
Consolidated
(dollars in thousands)
Banking
Banking
and Other
Total
Six Months Ended June 30, 2022 Net Interest Income
$
146,103
$
95,911
$
16,151
$
258,165
Provision for Credit Losses
2,185
(198
)
(9,987
)
(8,000
)
Net Interest Income After Provision for Credit Losses
143,918
96,109
26,138
266,165
Noninterest Income
63,922
18,477
3,310
85,709
Noninterest Expense
(164,438
)
(35,695
)
(6,680
)
(206,813
)
Income Before Income Taxes
43,402
78,891
22,768
145,061
Provision for Income Taxes
(10,872
)
(19,342
)
(3,151
)
(33,365
)
Net Income
$
32,530
$
59,549
$
19,617
$
111,696
Total Assets as of June 30, 2022
$
8,179,647
$
5,337,656
$
9,715,396
$
23,232,699
Six Months Ended June 30, 2021 Net Interest Income
$
140,929
$
96,181
$
6,973
$
244,083
Provision for Credit Losses
3,853
247
(34,500
)
(30,400
)
Net Interest Income (Loss) After Provision for Credit Losses
137,076
95,934
41,473
274,483
Noninterest Income
66,298
14,433
6,670
87,401
Noninterest Expense
(151,049
)
(31,419
)
(12,924
)
(195,392
)
Income (Loss) Before Income Taxes
52,325
78,948
35,219
166,492
Provision for Income Taxes
(12,839
)
(19,261
)
(6,910
)
(39,010
)
Net Income (Loss)
$
39,486
$
59,687
$
28,309
$
127,482
Total Assets as of June 30, 2021
$
7,479,986
$
5,127,431
$
10,064,766
$
22,672,183
Bank of Hawaii Corporation and
Subsidiaries
Selected Quarterly Financial
Data
Table 14
Three Months Ended
June 30,
March 31,
December 31,
September 30,
June 30,
(dollars in thousands, except per share amounts)
2022
2022
2021
2021
2021
Quarterly Operating Results Interest Income Interest and
Fees on Loans and Leases
$
101,663
$
94,439
$
97,853
$
100,570
$
100,894
Income on Investment Securities Available-for-Sale
17,984
17,100
15,850
16,396
16,467
Held-to-Maturity
18,838
18,701
18,325
16,754
13,576
Deposits
5
4
1
2
-
Funds Sold
719
127
104
382
260
Other
353
202
176
159
182
Total Interest Income
139,562
130,573
132,309
134,263
131,379
Interest Expense Deposits
3,535
2,353
2,898
3,837
4,152
Securities Sold Under Agreements to Repurchase
2,794
2,772
2,834
3,423
3,470
Funds Purchased
57
2
6
-
-
Short-Term Borrowings
92
-
-
-
-
Other Debt
182
183
183
184
243
Total Interest Expense
6,660
5,310
5,921
7,444
7,865
Net Interest Income
132,902
125,263
126,388
126,819
123,514
Provision for Credit Losses
(2,500
)
(5,500
)
(9,700
)
(10,400
)
(16,100
)
Net Interest Income After Provision for Credit Losses
135,402
130,763
136,088
137,219
139,614
Noninterest Income Trust and Asset Management
11,457
11,276
11,693
11,415
11,682
Mortgage Banking
1,247
2,740
2,908
3,136
3,058
Service Charges on Deposit Accounts
7,309
7,272
6,861
6,510
6,065
Fees, Exchange, and Other Service Charges
14,193
12,952
14,439
13,604
13,807
Investment Securities Gains (Losses), Net
(1,295
)
(1,545
)
(1,258
)
(1,259
)
2,423
Annuity and Insurance
870
791
876
735
911
Bank-Owned Life Insurance
2,658
2,349
1,907
1,897
2,063
Other
5,719
7,716
5,148
5,340
4,422
Total Noninterest Income
42,158
43,551
42,574
41,378
44,431
Noninterest Expense Salaries and Benefits
57,769
59,924
59,434
56,447
56,161
Net Occupancy
9,930
9,826
9,028
3,079
5,047
Net Equipment
9,543
9,153
9,105
8,924
8,796
Data Processing
4,607
4,560
4,696
4,722
4,557
Professional Fees
3,542
3,258
3,427
2,948
3,114
FDIC Insurance
1,590
1,502
1,619
1,594
1,669
Other
15,958
15,651
14,369
18,805
17,183
Total Noninterest Expense
102,939
103,874
101,678
96,519
96,527
Income Before Provision for Income Taxes
74,621
70,440
76,984
82,078
87,518
Provision for Income Taxes
17,759
15,606
13,147
20,025
19,985
Net Income
$
56,862
$
54,834
$
63,837
$
62,053
$
67,533
Preferred Stock Dividends
1,969
1,969
1,969
1,006
-
Net Income Available to Common Shareholders
$
54,893
$
52,865
$
61,868
$
61,047
$
67,533
Basic Earnings Per Common Share
$
1.38
$
1.33
$
1.56
$
1.53
$
1.69
Diluted Earnings Per Common Share
$
1.38
$
1.32
$
1.55
$
1.52
$
1.68
Balance Sheet Totals Loans and Leases
$
12,951,573
$
12,544,492
$
12,259,076
$
12,072,750
$
12,041,378
Total Assets
23,232,699
23,000,317
22,784,941
22,965,383
22,672,183
Total Deposits
21,025,681
20,716,287
20,360,108
20,493,678
20,169,709
Total Shareholders' Equity
1,348,746
1,448,885
1,611,611
1,597,109
1,583,531
Performance Ratios Return on Average Assets
1.00
%
0.97
%
1.12
%
1.07
%
1.23
%
Return on Average Shareholders' Equity
16.40
14.18
15.92
15.41
19.17
Return on Average Common Equity
18.19
15.44
17.40
17.08
19.61
Efficiency Ratio 1
58.80
61.53
60.18
57.38
57.47
Net Interest Margin 2
2.47
2.34
2.34
2.32
2.37
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
Five Months Ended
Year Ended
(dollars in millions; jobs in thousands)
May 31, 2022
December 31, 2021
December 31, 2020
Hawaii Economic Trends State General Fund Revenues 1
$
4,366.5
33.7
%
$
8,137.9
26.9
%
$
6,415.1
(12.3
)
%
General Excise and Use Tax Revenue 1
1,751.8
25.5
3,604.3
18.6
3,038.8
(15.6
)
Jobs 2
647.6
642.6
594.4
May 31,
December 31,
2022
2021
2020
Unemployment, seasonally adjusted 3 Statewide
4.2
%
4.3
%
9.8
%
Honolulu County
4.0
4.0
8.8
Hawaii County
4.5
4.1
9.2
Maui County
4.8
5.2
13.8
Kauai County
4.7
5.9
13.5
June 30,
December 31,
(percentage change, except months of inventory)
2022
2021
2020
2019
Housing Trends (Single Family Oahu) 4 Median Home Price
17.0
%
19.3
%
5.2
%
(0.1
)
%
Home Sales Volume (units)
(8.8
)
%
17.9
%
2.3
%
3.9
%
Months of Inventory
1.5
0.8
1.4
2.5
Monthly Visitor
Arrivals,
Percentage Change
(in thousands)
Not Seasonally
Adjusted
from Previous Year
Tourism 5 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
722.4
2,993.0
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
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220725005251/en/
Media Inquiries Melissa Torres-Laing Email:
Melissa.Torres-Laing@boh.com Telephone: 808-694-8384 Mobile:
808-859-1703
Investor/Analyst Inquiries Jennifer Lam Email:
Jennifer.Lam@boh.com Telephone: 808-694-8121
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