- Diluted Earnings Per Common Share $1.28
- Net Income $52.8 Million
- Board of Directors Declares Dividend of $0.70 Per Common
Share
Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted
earnings per common share of $1.28 for the third quarter of 2022,
compared with diluted earnings per common share of $1.38 in the
previous quarter and $1.52 in the same quarter last year. Net
income for the third quarter of 2022 was $52.8 million, down 7.1%
from the second quarter of 2022 and down 14.9% from the third
quarter of 2021. The decrease from the second quarter of 2022 was
primarily due to a one-time pre-tax charge of $6.9 million related
to our agreement to sell assets that will terminate certain
leveraged leases and a decrease in the negative provision for
credit losses. The decrease from the third quarter of 2021 was
primarily due to the aforementioned charge, a decrease in the
negative provision for credit losses and lower PPP income in the
current quarter and one-time items in the third quarter of
2021.
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“Bank of Hawai‘i continued to perform well during the third
quarter of 2022," said Peter Ho, Chairman, President, and CEO. “We
experienced quality core market loan growth and continued net
interest income and margin expansion. Asset quality, capital, and
liquidity remained strong.”
Financial Highlights
- The return on average assets for the third quarter of 2022 was
0.91% compared with 1.00% in the previous quarter and 1.07% in the
same quarter of 2021.
- The return on average common equity for the third quarter of
2022 was 16.98% compared with 18.19% in the previous quarter and
17.08% in the same quarter of 2021.
- Net interest income for the third quarter of 2022 was $141.7
million, an increase of 6.6% from the second quarter of 2022 and an
increase of 11.7% from the third quarter of 2021. Net interest
margin was 2.60% in the third quarter of 2022, an increase of 13
basis points compared to the previous quarter and an increase of 28
basis points from the same quarter of 2021.
- The increase in net interest income and margin in the third
quarter of 2022 compared to prior periods was due to the higher
rate environment and continued strong loan growth.
- Net interest income for the second quarter of 2022 included
$1.1 million of interest recoveries.
- There was no provision for credit losses for the third quarter
of 2022 compared with a net benefit of $2.5 million in the previous
quarter and a net benefit of $10.4 million in the same quarter of
2021.
- Noninterest income was $30.7 million in the third quarter of
2022, a decrease of 27.3% from the previous quarter and a decrease
of 25.9% from the same quarter of 2021 primarily due to one-time
items in the current quarter.
- Noninterest income in the current quarter included a one-time
pre-tax charge of $6.9 million related to our agreement to sell
assets that will terminate leveraged leases related to 31
locomotives. The sale and lease termination will complete the
Company’s process of exiting the leveraged lease market. In
addition, noninterest income in the current quarter also included a
negative adjustment of $0.9 million related to a change in the Visa
Class B conversion ratio.
- Noninterest expense was $105.7 million in the third quarter of
2022, an increase of 2.7% from the previous quarter and an increase
of 9.6% from the same quarter of 2021.
- Compared to the same period in 2021, noninterest expense
included the impact of higher salaries and benefits, including $1.8
million in separation expenses, and higher occupancy expenses,
primarily due to a one-time benefit in the same quarter of last
year from the sale of property.
- One-time significant items in the third quarter of 2021
included a gain of $6.3 million related to the sale of property
partially offset by $3.8 million of fees related to the early
termination of repurchase agreements and $1.2 million in separation
expenses.
- The effective tax rate for the third quarter of 2022 was 20.7%
compared with 23.8% in the previous quarter and 24.4% during the
same quarter of 2021.
- The lower effective tax rate in the current quarter is
primarily due to tax benefits related to the aforementioned
agreement to sell assets that will terminate certain leveraged
leases.
Asset Quality
The Company’s overall asset quality remained strong during the
third quarter of 2022.
- Total non-performing assets were $13.9 million at September 30,
2022, down by $1.6 million from June 30, 2022 and down $6.8 million
from September 30, 2021. Non-performing assets as a percentage of
total loans and leases and foreclosed real estate were 0.10% at the
end of the quarter, a decrease of 2 basis points from the end of
the prior quarter and a decrease of 7 basis points from the same
quarter of 2021.
- Net loan and lease charge-offs during the third quarter of 2022
were $1.1 million or 0.03% annualized of total average loans and
leases outstanding.
- Net loan and lease charge-offs for the third quarter of 2022
were comprised of charge-offs of $2.9 million partially offset by
recoveries of $1.7 million.
- Compared to the prior quarter, net loan and lease charge-offs
increased by $0.5 million or 1 basis point annualized on total
average loans and leases outstanding.
- Compared to the same quarter of 2021, net loan and lease
charge-offs decreased by $0.05 million or 1 basis point annualized
on total average loans and leases outstanding.
- The allowance for credit losses on loans and leases was $146.4
million at September 30, 2022, a decrease of $2.1 million from June
30, 2022 and a decrease of $21.5 million from September 30, 2021.
The ratio of the allowance for credit losses to total loans and
leases outstanding was 1.10% at the end of the quarter, down 5
basis points from the end of the prior quarter and down 29 basis
points from the end of the same quarter of 2021.
Balance Sheet
- Total assets were $23.1 billion at September 30, 2022, a
decrease of 0.4% from June 30, 2022 and an increase of 0.7% from
September 30, 2021.
- The investment securities portfolio was $7.9 billion at
September 30, 2022, a decrease of 4.7% from June 30, 2022 and a
decrease of 14.8% from September 30, 2021.
- During the third quarter, the Company transferred investment
securities with total fair value of approximately $1.3 billion from
available-for-sale to held-to-maturity.
- The investment portfolio remains largely comprised of
securities issued by U.S. government agencies and U.S.
government-sponsored enterprises.
- Total loans and leases were $13.3 billion at September 30,
2022, an increase of 2.9% from June 30, 2022 and an increase of
10.3% from September 30, 2021.
- Total loans and leases excluding PPP loans were $13.3 billion
at September 30, 2022, an increase of 2.9% from June 30, 2022 and
an increase of 12.7% from September 30, 2021.
- Total deposits were $20.9 billion at September 30, 2022, a
decrease of 0.7% from June 30, 2022 and an increase of 1.9% from
September 30, 2021.
Capital and Dividends
- The Tier 1 Capital Ratio was 12.72% at September 30, 2022
compared with 13.01% at June 30, 2022 and 13.47% at September 30,
2021.
- The Tier 1 Leverage Ratio was 7.28% at September 30, 2022
compared with 7.29% at June 30, 2022 and 7.10% at September 30,
2021.
- The Company repurchased 187.5 thousand shares of common stock
at a total cost of $15.0 million under its share repurchase program
in the third quarter of 2022 at an average cost of $79.84 per share
repurchased.
- Total remaining buyback authority under the share repurchase
program was $50.9 million at September 30, 2022.
- The Company’s Board of Directors declared a quarterly cash
dividend of $0.70 per share on the Company’s outstanding common
shares. The dividend will be payable on December 14, 2022 to
shareholders of record at the close of business on November 30,
2022.
- On October 4, 2022, the Board of Directors declared the
quarterly dividend payment of $10.94 per share, equivalent to
$0.2735 per depositary share, on its preferred stock. The
depositary shares representing the Series A Preferred Stock are
traded on the NYSE under the symbol “BOH.PRA.” The dividend will be
payable on November 1, 2022 to shareholders of record of the
preferred stock at the close of business on October 17, 2022.
Conference Call
Information
The Company will review its third quarter financial results
today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The live
call, including a slide presentation, will be accessible on the
investor relations link of Bank of Hawai‘i Corporation's website,
www.boh.com.
- The webcast can be accessed via the link below:
https://register.vevent.com/register/BIb16c1a66caad46fe8057fb079c9fe595.
- A replay of the conference call will be available for one year
beginning approximately 11:00 a.m. Hawaii Time on Monday, October
24, 2022. The replay will be accessible via the same link. In
addition, the replay will be available on the Company's website,
www.boh.com.
Forward-Looking
Statements
This news release, and other statements made by the Company in
connection with it may contain "forward-looking statements" (as
defined in the Private Securities Litigation Reform Act of 1995)
that involve risks and uncertainties that could cause results to be
materially different from expectations. Forecasts of our financial
results and condition, expectations for our operations and business
prospects, and our assumptions used in those forecasts and
expectations are examples of certain of these forward-looking
statements. Do not unduly rely on forward-looking statements.
Actual results might differ significantly from our forecasts and
expectations because of a variety of factors. More information
about these factors is contained in Bank of Hawai‘i Corporation's
Annual Report on Form 10-K for the year ended December 31, 2021 and
its Form 10-Q for the fiscal quarters ended March 31, 2022 and June
30, 2022, which were filed with the U.S. Securities and Exchange
Commission. These forward-looking statements are not guarantees of
future performance and speak only as of the date made, and, except
as required by law, the Company undertakes no obligation to update
or revise any forward-looking statements to reflect subsequent
events, new information or future circumstances.
Bank of Hawai‘i Corporation is an independent regional financial
services company serving businesses, consumers, and governments in
Hawaii and the West Pacific. The Company's principal subsidiary,
Bank of Hawai'i, was founded in 1897. For more information about
Bank of Hawai‘i Corporation, see the Company’s web site,
www.boh.com. Bank of Hawai‘i Corporation is a trade name of Bank of
Hawaii Corporation.
Bank of Hawaii Corporation and Subsidiaries Financial
Highlights Table 1
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
(dollars in thousands, except per share amounts)
2022
2022
2021
2022
2021
For the Period: Operating
Results Net Interest Income
$
141,655
$
132,902
$
126,819
$
399,820
$
370,902
Provision for Credit Losses
-
(2,500
)
(10,400
)
(8,000
)
(40,800
)
Total Noninterest Income
30,660
42,158
41,378
116,369
128,779
Total Noninterest Expense
105,749
102,939
96,519
312,562
291,911
Pre-Provision Net Revenue
66,566
72,121
71,678
203,627
207,770
Net Income
52,801
56,862
62,053
164,497
189,535
Net Income Available to Common Shareholders
50,832
54,893
61,047
158,590
188,529
Basic Earnings Per Common Share
1.28
1.38
1.53
4.00
4.73
Diluted Earnings Per Common Share
1.28
1.38
1.52
3.98
4.70
Dividends Declared Per Common Share
0.70
0.70
0.70
2.10
2.04
Performance Ratios Return on Average Assets
0.91
%
1.00
%
1.07
%
0.96
%
1.15
%
Return on Average Shareholders' Equity
15.31
16.40
15.41
15.25
17.31
Return on Average Common Equity
16.98
18.19
17.08
16.81
18.10
Efficiency Ratio 1
61.37
58.80
57.38
60.55
58.42
Net Interest Margin 2
2.60
2.47
2.32
2.47
2.37
Dividend Payout Ratio 3
54.69
50.72
45.75
52.50
43.13
Average Shareholders' Equity to Average Assets
5.91
6.08
6.95
6.28
6.63
Average Balances Average Loans and Leases
$
13,126,717
$
12,700,825
$
11,958,321
$
12,709,045
$
12,002,426
Average Assets
23,135,820
22,891,262
22,993,036
22,959,246
22,079,174
Average Deposits
20,863,681
20,569,363
20,473,777
20,621,310
19,619,053
Average Shareholders' Equity
1,367,946
1,390,653
1,598,076
1,441,706
1,463,566
Per Share of Common Stock Book Value 4
$
27.55
$
29.09
$
35.16
$
27.55
$
35.16
Tangible Book Value
26.76
28.30
34.38
26.76
34.38
Market Value Closing
76.12
74.40
82.17
76.12
82.17
High
85.45
84.93
87.12
92.38
99.10
Low
70.89
70.97
75.68
70.89
75.65
September 30,
June 30,
December 31,
September 30,
2022
2022
2021
2021
As of Period End: Balance
Sheet Totals Loans and Leases
$
13,321,606
$
12,951,573
$
12,259,076
$
12,072,750
Total Assets
23,134,040
23,232,699
22,784,941
22,965,383
Total Deposits
20,888,773
21,025,681
20,360,108
20,493,678
Other Debt
10,319
10,343
10,391
10,414
Total Shareholders' Equity
1,282,384
1,348,746
1,611,611
1,597,109
Asset Quality Non-Performing Assets
$
13,868
$
15,493
$
18,966
$
20,620
Allowance for Credit Losses - Loans and Leases
146,436
148,512
157,821
167,920
Allowance to Loans and Leases Outstanding 5
1.10
%
1.15
%
1.29
%
1.39
%
Capital Ratios 6 Common Equity Tier 1 Capital Ratio
11.42
%
11.66
%
12.12
%
12.02
%
Tier 1 Capital Ratio
12.72
13.01
13.56
13.47
Total Capital Ratio
13.82
14.14
14.81
14.72
Tier 1 Leverage Ratio
7.28
7.29
7.32
7.10
Total Shareholders' Equity to Total Assets
5.54
5.81
7.07
6.95
Tangible Common Equity to Tangible Assets 7
4.64
4.90
6.15
6.04
Tangible Common Equity to Risk-Weighted Assets 7
7.97
8.72
11.44
11.46
Non-Financial Data Full-Time Equivalent Employees
2,115
2,114
2,056
2,049
Branches
51
54
54
54
ATMs
316
310
307
303
1 Efficiency ratio is defined as noninterest expense divided by
total revenue (net interest income and total noninterest income). 2
Net interest margin is defined as net interest income, on a
taxable-equivalent basis, as a percentage of average earning
assets. 3 Dividend payout ratio is defined as dividends declared
per common share divided by basic earnings per common share. 4 Book
Value was revised from $35.30 for the three months ended and nine
months ended September 30, 2021. 5 The numerator comprises the
Allowance for Credit Losses - Loans and Leases. 6 Regulatory
capital ratios as of September 30, 2022 are preliminary. 7 Tangible
common equity to tangible assets and tangible common equity to
risk-weighted assets are Non-GAAP financial measures. Tangible
common equity is defined by the Company as common shareholders'
equity minus goodwill. See Table 2 "Reconciliation of Non-GAAP
Financial Measures"
Bank of Hawaii Corporation and
Subsidiaries Reconciliation of Non-GAAP Financial
Measures Table 2
September 30,
June 30,
December 31,
September 30,
(dollars in thousands)
2022
2022
2021
2021
Total Shareholders' Equity
$
1,282,384
$
1,348,746
$
1,611,611
$
1,597,109
Less: Preferred Stock
180,000
180,000
180,000
180,000
Goodwill
31,517
31,517
31,517
31,517
Tangible Common Equity
$
1,070,867
$
1,137,229
$
1,400,094
$
1,385,592
Total Assets
23,134,040
23,232,699
22,784,941
22,965,383
Less: Goodwill
31,517
31,517
31,517
31,517
Tangible Assets
$
23,102,523
$
23,201,182
$
22,753,424
$
22,933,866
Risk-Weighted Assets, determined in accordance with
prescribed regulatory requirements 1
$
13,428,188
$
13,038,852
$
12,236,805
$
12,093,010
Total Shareholders' Equity to Total Assets
5.54
%
5.81
%
7.07
%
6.95
%
Tangible Common Equity to Tangible Assets (Non-GAAP)
4.64
%
4.90
%
6.15
%
6.04
%
Tier 1 Capital Ratio 1
12.72
%
13.01
%
13.56
%
13.47
%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1
7.97
%
8.72
%
11.44
%
11.46
%
1 Regulatory capital ratios as of September 30, 2022 are
preliminary.
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income Table 3
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
(dollars in thousands, except per share amounts)
2022
2022
2021
2022
2021
Interest Income Interest and Fees on Loans and Leases
$
115,013
$
101,663
$
100,570
$
311,115
$
300,763
Income on Investment Securities Available-for-Sale
16,995
17,984
16,396
52,079
48,700
Held-to-Maturity
20,243
18,838
16,754
57,782
43,630
Deposits
10
5
2
19
9
Funds Sold
2,335
719
382
3,181
779
Other
322
353
159
877
526
Total Interest Income
154,918
139,562
134,263
425,053
394,407
Interest Expense Deposits
10,296
3,535
3,837
16,184
12,318
Securities Sold Under Agreements to Repurchase
2,745
2,794
3,423
8,311
10,426
Funds Purchased
40
57
-
99
1
Short-Term Borrowings
-
92
-
92
-
Other Debt
182
182
184
547
760
Total Interest Expense
13,263
6,660
7,444
25,233
23,505
Net Interest Income
141,655
132,902
126,819
399,820
370,902
Provision for Credit Losses
-
(2,500
)
(10,400
)
(8,000
)
(40,800
)
Net Interest Income After Provision for Credit Losses
141,655
135,402
137,219
407,820
411,702
Noninterest Income Trust and Asset Management
10,418
11,457
11,415
33,151
34,375
Mortgage Banking
1,002
1,247
3,136
4,989
12,056
Service Charges on Deposit Accounts
7,526
7,309
6,510
22,107
18,703
Fees, Exchange, and Other Service Charges
13,863
14,193
13,604
41,008
41,018
Investment Securities Losses, Net
(2,147
)
(1,295
)
(1,259
)
(4,987
)
(39
)
Annuity and Insurance
1,034
870
735
2,695
2,348
Bank-Owned Life Insurance
2,486
2,658
1,897
7,493
5,877
Other
(3,522
)
5,719
5,340
9,913
14,441
Total Noninterest Income
30,660
42,158
41,378
116,369
128,779
Noninterest Expense Salaries and Benefits
59,938
57,769
56,447
177,631
168,859
Net Occupancy
10,186
9,930
3,079
29,942
17,216
Net Equipment
9,736
9,543
8,924
28,432
26,598
Data Processing
4,616
4,607
4,722
13,783
15,601
Professional Fees
3,799
3,542
2,948
10,599
9,468
FDIC Insurance
1,680
1,590
1,594
4,772
4,917
Other
15,794
15,958
18,805
47,403
49,252
Total Noninterest Expense
105,749
102,939
96,519
312,562
291,911
Income Before Provision for Income Taxes
66,566
74,621
82,078
211,627
248,570
Provision for Income Taxes
13,765
17,759
20,025
47,130
59,035
Net Income
$
52,801
$
56,862
$
62,053
$
164,497
$
189,535
Preferred Stock Dividends
1,969
1,969
1,006
5,908
1,006
Net Income Available to Common Shareholders
$
50,832
$
54,893
$
61,047
$
158,589
$
188,529
Basic Earnings Per Common Share
$
1.28
$
1.38
$
1.53
$
4.00
$
4.73
Diluted Earnings Per Common Share
$
1.28
$
1.38
$
1.52
$
3.98
$
4.70
Dividends Declared Per Common Share
$
0.70
$
0.70
$
0.70
$
2.10
$
2.04
Basic Weighted Average Common Shares
39,567,047
39,693,593
39,881,437
39,670,409
39,870,450
Diluted Weighted Average Common Shares
39,758,209
39,842,608
40,080,919
39,848,795
40,088,899
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)
Table 4
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
(dollars in thousands)
2022
2022
2021
2022
2021
Net Income
$
52,801
$
56,862
$
62,053
$
164,497
$
189,535
Other Comprehensive Loss, Net of Tax: Net Unrealized Losses on
Investment Securities
(79,600
)
(122,647
)
(7,541
)
(382,371
)
(57,714
)
Defined Benefit Plans
354
352
441
1,059
1,324
Other Comprehensive Loss
(79,246
)
(122,295
)
(7,100
)
(381,312
)
(56,390
)
Comprehensive Income (Loss)
$
(26,445
)
$
(65,433
)
$
54,953
$
(216,815
)
$
133,145
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition Table 5
September 30,
June 30,
December 31,
September 30,
(dollars in thousands)
2022
2022
2021
2021
Assets Interest-Bearing Deposits in Other Banks
$
5,429
$
2,264
$
2,571
$
2,188
Funds Sold
402,714
576,430
361,536
422,063
Investment Securities Available-for-Sale
2,424,608
3,955,476
4,276,056
4,353,520
Held-to-Maturity (Fair Value of $4,668,074; $3,823,739; $4,646,619;
and $4,895,763)
5,461,160
4,321,693
4,694,780
4,899,880
Loans Held for Sale
418
4,514
26,746
21,965
Loans and Leases
13,321,606
12,951,573
12,259,076
12,072,750
Allowance for Credit Losses
(146,436
)
(148,512
)
(157,821
)
(167,920
)
Net Loans and Leases
13,175,170
12,803,061
12,101,255
11,904,830
Total Earning Assets
21,469,499
21,663,438
21,462,944
21,604,446
Cash and Due from Banks
247,506
260,672
196,327
231,711
Premises and Equipment, Net
208,251
202,063
199,393
199,144
Operating Lease Right-of-Use Assets
94,613
91,901
95,621
97,007
Accrued Interest Receivable
50,143
47,141
45,242
46,751
Foreclosed Real Estate
1,040
2,332
2,332
2,332
Mortgage Servicing Rights
23,104
23,540
22,251
22,099
Goodwill
31,517
31,517
31,517
31,517
Bank-Owned Life Insurance
451,407
448,925
344,587
293,230
Other Assets
556,960
461,170
384,727
437,146
Total Assets
$
23,134,040
$
23,232,699
$
22,784,941
$
22,965,383
Liabilities Deposits Noninterest-Bearing Demand
$
7,300,157
$
7,374,055
$
7,275,287
$
7,111,693
Interest-Bearing Demand
4,399,625
4,339,520
4,628,567
4,768,725
Savings
7,954,006
8,054,899
7,456,165
7,540,345
Time
1,234,985
1,257,207
1,000,089
1,072,915
Total Deposits
20,888,773
21,025,681
20,360,108
20,493,678
Securities Sold Under Agreements to Repurchase
425,490
425,490
450,490
450,490
Other Debt
10,319
10,343
10,391
10,414
Operating Lease Liabilities
102,705
99,722
103,210
104,452
Retirement Benefits Payable
37,053
37,532
38,494
49,802
Accrued Interest Payable
3,405
2,545
2,499
3,415
Taxes Payable
13,527
10,607
11,901
9,815
Other Liabilities
370,384
272,033
196,237
246,208
Total Liabilities
21,851,656
21,883,953
21,173,330
21,368,274
Shareholders' Equity Preferred Stock ($.01 par value;
authorized 180,000 shares; issued / outstanding: September 30,
2022; June 30, 2022; December 31, 2021; and September 30, 2021 -
180,000)
180,000
180,000
180,000
180,000
Common Stock ($.01 par value; authorized 500,000,000 shares; issued
/ outstanding: September 30, 2022 - 58,728,796 / 40,011,473; June
30, 2022 - 58,727,909 / 40,182,659; December 31, 2021 - 58,554,669
/ 40,253,193; and September 30, 2021 - 58,559,089 / 40,305,801)
582
582
581
580
Capital Surplus
615,985
611,694
602,508
598,341
Accumulated Other Comprehensive Loss
(447,694
)
(368,448
)
(66,382
)
(48,568
)
Retained Earnings
2,024,641
2,002,005
1,950,375
1,916,861
Treasury Stock, at Cost (Shares: September 30, 2022 - 18,717,323;
June 30, 2022 - 18,545,250; December 31, 2021 - 18,301,476; and
September 30, 2021 - 18,253,288)
(1,091,130
)
(1,077,087
)
(1,055,471
)
(1,050,105
)
Total Shareholders' Equity
1,282,384
1,348,746
1,611,611
1,597,109
Total Liabilities and Shareholders' Equity
$
23,134,040
$
23,232,699
$
22,784,941
$
22,965,383
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity Table
6 Accumulated
Other
Compre-
Preferred
Common
hensive
Shares
Preferred
Shares
Common
Capital
Income
Retained
Treasury
(dollars in thousands)
Outstanding
Stock
Outstanding
Stock
Surplus
(Loss)
Earnings
Stock
Total
Balance as of December 31, 2021
180,000
$
180,000
40,253,193
$
581
$
602,508
$
(66,382
)
$
1,950,375
$
(1,055,471
)
$
1,611,611
Net Income
-
-
-
-
-
-
164,497
-
164,497
Other Comprehensive Loss
-
-
-
-
-
(381,312
)
-
-
(381,312
)
Share-Based Compensation
-
-
-
-
11,947
-
-
-
11,947
Common Stock Issued under Purchase and Equity Compensation Plans
-
-
247,966
1
1,530
-
256
3,889
5,676
Common Stock Repurchased
-
-
(489,686
)
-
-
-
-
(39,548
)
(39,548
)
Cash Dividends Declared Common Stock ($2.10 per share)
-
-
-
-
-
-
(84,579
)
-
(84,579
)
Cash Dividends Declared Preferred Stock
-
-
-
-
-
-
(5,908
)
-
(5,908
)
Balance as of September 30, 2022
180,000
$
180,000
40,011,473
$
582
$
615,985
$
(447,694
)
$
2,024,641
$
(1,091,130
)
$
1,282,384
Balance as of December 31, 2020
-
$
-
40,119,312
$
580
$
591,360
$
7,822
$
1,811,979
$
(1,037,234
)
$
1,374,507
Net Income
-
-
-
-
-
-
189,535
-
189,535
Other Comprehensive Loss
-
-
-
-
-
(56,390
)
-
-
(56,390
)
Share-Based Compensation
-
-
-
-
9,658
-
-
-
9,658
Preferred Stock Issued, Net
180,000
180,000
-
-
(4,513
)
-
-
-
175,487
Common Stock Issued under Purchase and Equity Compensation Plans
-
-
466,265
-
1,836
-
(1,218
)
10,541
11,159
Common Stock Repurchased
-
-
(279,776
)
-
-
-
-
(23,412
)
(23,412
)
Cash Dividends Declared Common Stock ($2.04 per share)
-
-
-
-
-
-
(82,429
)
-
(82,429
)
Cash Dividends Declared Preferred Stock
-
-
-
-
-
-
(1,006
)
-
(1,006
)
Balance as of September 30, 2021
180,000
$
180,000
40,305,801
$
580
$
598,341
$
(48,568
)
$
1,916,861
$
(1,050,105
)
$
1,597,109
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis
1 Table 7a Three Months Ended Three Months
Ended Three Months Ended September 30, 2022
June 30, 2022 September 30, 2021 Average
Income/ Yield/ Average Income/
Yield/ Average Income/ Yield/ (dollars
in millions)
Balance Expense 2 Rate
Balance Expense 2 Rate Balance
Expense 2 Rate Earning Assets Interest-Bearing
Deposits in Other Banks
$
2.9
$
-
1.32
%
$
3.5
$
-
0.59
%
$
3.2
$
-
0.23
%
Funds Sold
411.8
2.3
2.22
273.5
0.7
1.04
999.5
0.4
0.15
Investment Securities Available-for-Sale Taxable
3,481.9
17.0
1.95
4,123.1
18.0
1.74
4,454.9
16.3
1.46
Non-Taxable
2.5
-
1.56
2.9
-
1.99
10.1
0.1
4.34
Held-to-Maturity Taxable
4,645.7
20.1
1.73
4,377.0
18.7
1.71
4,294.6
16.5
1.53
Non-Taxable
35.6
0.2
2.10
35.7
0.2
2.10
64.8
0.4
2.37
Total Investment Securities
8,165.7
37.3
1.82
8,538.7
36.9
1.73
8,824.4
33.3
1.51
Loans Held for Sale
4.3
0.1
4.46
6.3
0.1
4.06
24.6
0.2
2.80
Loans and Leases 3 Commercial and Industrial
1,353.8
12.5
3.66
1,330.0
9.9
2.99
1,252.8
9.1
2.88
Paycheck Protection Program
28.0
0.2
3.02
38.7
0.5
5.26
392.0
7.9
7.98
Commercial Mortgage
3,530.9
33.3
3.74
3,357.2
26.2
3.13
2,952.7
21.9
2.94
Construction
233.0
2.8
4.81
222.6
2.4
4.39
289.9
2.5
3.38
Commercial Lease Financing
89.1
0.4
1.58
94.2
0.3
1.44
109.3
0.4
1.58
Residential Mortgage
4,526.6
37.4
3.30
4,445.7
36.4
3.26
4,253.2
34.8
3.27
Home Equity
2,144.8
16.4
3.04
2,032.9
14.4
2.85
1,621.4
12.2
2.97
Automobile
795.5
6.4
3.19
759.1
6.1
3.20
718.7
6.2
3.41
Other 4
425.0
5.9
5.48
420.4
5.6
5.38
368.3
5.7
6.16
Total Loans and Leases
13,126.7
115.3
3.49
12,700.8
101.8
3.21
11,958.3
100.7
3.35
Other
36.9
0.3
3.49
38.2
0.3
3.70
31.5
0.2
2.02
Total Earning Assets
21,748.3
155.3
2.84
21,561.0
139.8
2.60
21,841.5
134.8
2.45
Cash and Due from Banks
233.5
238.4
252.2
Other Assets
1,154.0
1,091.9
899.3
Total Assets
$
23,135.8
$
22,891.3
$
22,993.0
Interest-Bearing Liabilities Interest-Bearing
Deposits Demand
$
4,286.0
1.4
0.13
$
4,442.2
0.7
0.06
$
4,707.1
0.7
0.06
Savings
7,962.0
6.6
0.33
7,692.8
1.9
0.10
7,687.0
1.8
0.09
Time
1,146.9
2.3
0.79
950.4
0.9
0.40
1,267.0
1.4
0.44
Total Interest-Bearing Deposits
13,394.9
10.3
0.30
13,085.4
3.5
0.11
13,661.1
3.9
0.11
Short-Term Borrowings
4.9
0.1
3.17
59.8
0.1
0.98
-
-
-
Securities Sold Under Agreements to Repurchase
425.5
2.7
2.52
447.7
2.8
2.47
547.8
3.4
2.45
Other Debt
10.3
0.2
7.05
10.4
0.3
7.05
10.4
0.2
7.04
Total Interest-Bearing Liabilities
13,835.6
13.3
0.38
13,603.3
6.7
0.20
14,219.3
7.5
0.21
Net Interest Income
$
142.0
$
133.1
$
127.3
Interest Rate Spread
2.46
%
2.40
%
2.24
%
Net Interest Margin
2.60
%
2.47
%
2.32
%
Noninterest-Bearing Demand Deposits
7,468.8
7,484.0
6,812.7
Other Liabilities
463.5
413.3
362.9
Shareholders' Equity
1,367.9
1,390.7
1,598.1
Total Liabilities and Shareholders' Equity
$
23,135.8
$
22,891.3
$
22,993.0
1 Due to rounding, the amounts presented in this table may not tie
to other amounts presented elsewhere in this report. 2 Interest
income includes taxable-equivalent basis adjustments, based upon a
federal statutory tax rate of 21%, of $343,000, $221,000, and
$315,000 for the three months ended September 30, 2022, June 30,
2022, and September 30, 2021, respectively. 3 Non-performing loans
and leases are included in the respective average loan and lease
balances. Income, if any, on such loans and leases is recognized on
a cash basis. 4 Comprised of other consumer revolving credit,
installment, and consumer lease financing.
Bank of Hawaii
Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis
1 Table 7b
Nine Months Ended
Nine Months Ended
September 30, 2022
September 30, 2021
Average
Income/
Yield/
Average
Income/
Yield/
(dollars in millions)
Balance
Expense 2
Rate
Balance
Expense 2
Rate
Earning Assets
Interest-Bearing Deposits in Other Banks
$
3.3
$
-
0.76
%
$
2.9
$
-
0.44
%
Funds Sold
308.6
3.2
1.36
833.7
0.8
0.12
Investment Securities
Available-for-Sale Taxable
3,998.2
52.0
1.74
4,252.9
48.4
1.52
Non-Taxable
2.8
-
1.84
11.5
0.4
4.29
Held-to-Maturity Taxable
4,530.4
57.4
1.69
3,728.9
42.9
1.53
Non-Taxable
35.7
0.6
2.10
48.2
0.9
2.46
Total Investment Securities
8,567.1
110.0
1.71
8,041.5
92.6
1.54
Loans Held for Sale
8.1
0.2
3.43
25.5
0.5
2.81
Loans and Leases 3 Commercial
and Industrial
1,339.0
31.4
3.13
1,281.0
28.1
2.94
Paycheck Protection Program
51.7
2.5
6.59
545.9
20.0
4.90
Commercial Mortgage
3,350.3
81.3
3.25
2,894.5
64.5
2.98
Construction
227.7
7.3
4.30
280.0
7.3
3.51
Commercial Lease Financing
94.0
1.0
1.49
107.1
1.2
1.52
Residential Mortgage
4,439.1
108.6
3.26
4,211.8
106.2
3.36
Home Equity
2,026.5
44.1
2.91
1,596.4
36.9
3.09
Automobile
764.2
18.4
3.21
712.5
18.4
3.46
Other 4
416.5
17.0
5.44
373.2
18.1
6.48
Total Loans and Leases
12,709.0
311.6
3.27
12,002.4
300.7
3.35
Other
37.2
0.9
3.14
32.4
0.5
2.17
Total Earning Assets
21,633.3
425.9
2.63
20,938.4
395.1
2.52
Cash and Due from Banks
235.0
259.6
Other Assets
1,090.9
881.2
Total Assets
$
22,959.2
$
22,079.2
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand
$
4,459.9
2.6
0.08
$
4,450.6
2.0
0.06
Savings
7,733.3
9.5
0.16
7,414.6
5.0
0.09
Time
1,023.6
4.1
0.53
1,437.1
5.3
0.49
Total Interest-Bearing Deposits
13,216.8
16.2
0.16
13,302.3
12.3
0.12
Short-Term Borrowings
23.9
0.2
1.05
0.8
-
0.09
Securities Sold Under Agreements to Repurchase
441.1
8.3
2.48
572.7
10.4
2.40
Other Debt
10.3
0.6
7.05
33.5
0.8
3.03
Total Interest-Bearing Liabilities
13,692.1
25.3
0.25
13,909.3
23.5
0.22
Net Interest Income
$
400.6
$
371.6
Interest Rate Spread
2.38
%
2.30
%
Net Interest Margin
2.47
%
2.37
%
Noninterest-Bearing Demand Deposits
7,404.5
6,316.8
Other Liabilities
420.9
389.5
Shareholders' Equity
1,441.7
1,463.6
Total Liabilities and Shareholders' Equity
$
22,959.2
$
22,079.2
1 Due to rounding, the amounts presented in this
table may not tie to other amounts presented elsewhere in this
report. 2 Interest income includes taxable-equivalent basis
adjustments, based upon a federal statutory tax rate of 21%, of
$818,000 and $836,000 for nine months ended September 30, 2022 and
September 30, 2021, respectively. 3 Non-performing loans and leases
are included in the respective average loan and lease balances.
Income, if any, on such loans and leases is recognized on a cash
basis. 4 Comprised of other consumer revolving credit, installment,
and consumer lease financing.
Bank of Hawaii Corporation
and Subsidiaries Analysis of Change in Net Interest Income -
Taxable-Equivalent Basis Table 8a
Three Months Ended September
30, 2022
Compared to June 30,
2022
(dollars in millions)
Volume 1
Rate 1
Total
Change in Interest Income: Funds Sold
$
0.5
$
1.1
$
1.6
Investment Securities Available-for-Sale Taxable
(3.0
)
2.0
(1.0
)
Held-to-Maturity Taxable
1.2
0.2
1.4
Total Investment Securities
(1.8
)
2.2
0.4
Loans and Leases Commercial and Industrial
0.2
2.4
2.6
Paycheck Protection Program
(0.1
)
(0.2
)
(0.3
)
Commercial Mortgage
1.5
5.6
7.1
Construction
0.1
0.3
0.4
Commercial Lease Financing
0.1
-
0.1
Residential Mortgage
0.6
0.4
1.0
Home Equity
0.9
1.1
2.0
Automobile
0.3
-
0.3
Other 2
0.1
0.2
0.3
Total Loans and Leases
3.7
9.8
13.5
Total Change in Interest Income
2.4
13.1
15.5
Change in Interest Expense: Interest-Bearing Deposits Demand
-
0.7
0.7
Savings
0.1
4.6
4.7
Time
0.2
1.2
1.4
Total Interest-Bearing Deposits
0.3
6.5
6.8
Short-Term Borrowings
(0.2
)
0.2
-
Securities Sold Under Agreements to Repurchase
(0.2
)
0.1
(0.1
)
Other Debt
-
(0.1
)
(0.1
)
Total Change in Interest Expense
(0.1
)
6.7
6.6
Change in Net Interest Income
$
2.5
$
6.4
$
8.9
1 The change in interest income and expense not solely due to
changes in volume or rate has been allocated on a pro-rata basis to
the volume and rate columns. 2 Comprised of other consumer
revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries Analysis of
Change in Net Interest Income - Taxable-Equivalent Basis
Table 8b
Three Months Ended September
30, 2022
Compared to September 30,
2021
(dollars in millions)
Volume 1
Rate 1
Total
Change in Interest Income: Funds Sold
$
(0.4
)
$
2.3
$
1.9
Investment Securities Available-for-Sale Taxable
(4.0
)
4.7
0.7
Non-Taxable
(0.1
)
-
(0.1
)
Held-to-Maturity Taxable
1.4
2.2
3.6
Non-Taxable
(0.2
)
-
(0.2
)
Total Investment Securities
(2.9
)
6.9
4.0
Loans Held for Sale
(0.2
)
0.1
(0.1
)
Loans and Leases Commercial and Industrial
0.8
2.6
3.4
Paycheck Protection Program
(4.6
)
(3.1
)
(7.7
)
Commercial Mortgage
4.8
6.6
11.4
Construction
(0.6
)
0.9
0.3
Commercial Lease Financing
(0.1
)
0.1
-
Residential Mortgage
2.3
0.3
2.6
Home Equity
4.0
0.2
4.2
Automobile
0.6
(0.4
)
0.2
Other 2
0.9
(0.7
)
0.2
Total Loans and Leases
8.1
6.5
14.6
Other
-
0.1
0.1
Total Change in Interest Income
4.6
15.9
20.5
Change in Interest Expense: Interest-Bearing Deposits Demand
(0.1
)
0.8
0.7
Savings
0.1
4.7
4.8
Time
(0.1
)
1.0
0.9
Total Interest-Bearing Deposits
(0.1
)
6.5
6.4
Short-Term Borrowings
0.1
-
0.1
Securities Sold Under Agreements to Repurchase
(0.8
)
0.1
(0.7
)
Total Change in Interest Expense
(0.8
)
6.6
5.8
Change in Net Interest Income
$
5.4
$
9.3
$
14.7
1 The change in interest income and expense not solely due to
changes in volume or rate has been allocated on a pro-rata basis to
the volume and rate columns. 2 Comprised of other consumer
revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries Analysis of
Change in Net Interest Income - Taxable-Equivalent Basis
Table 8c
Nine Months Ended September
30, 2022
Compared to September 30,
2021
(dollars in millions)
Volume 1
Rate 1
Total
Change in Interest Income: Funds Sold
$
(0.8
)
$
3.2
$
2.4
Investment Securities Available-for-Sale Taxable
(3.0
)
6.6
3.6
Non-Taxable
(0.3
)
(0.1
)
(0.4
)
Held-to-Maturity Taxable
9.9
4.6
14.5
Non-Taxable
(0.2
)
(0.1
)
(0.3
)
Total Investment Securities
6.4
11.0
17.4
Loans Held for Sale
(0.4
)
0.1
(0.3
)
Loans and Leases Commercial and Industrial
1.3
2.0
3.3
Paycheck Protection Program
(22.6
)
5.1
(17.5
)
Commercial Mortgage
10.8
6.0
16.8
Construction
(1.5
)
1.5
-
Commercial Lease Financing
(0.1
)
(0.1
)
(0.2
)
Residential Mortgage
5.7
(3.3
)
2.4
Home Equity
9.4
(2.2
)
7.2
Automobile
1.3
(1.3
)
-
Other 2
2.0
(3.1
)
(1.1
)
Total Loans and Leases
6.3
4.6
10.9
Other
0.1
0.3
0.4
Total Change in Interest Income
11.6
19.2
30.8
Change in Interest Expense: Interest-Bearing Deposits Demand
-
0.6
0.6
Savings
0.2
4.3
4.5
Time
(1.6
)
0.4
(1.2
)
Total Interest-Bearing Deposits
(1.4
)
5.3
3.9
Short-Term Borrowings
0.2
-
0.2
Securities Sold Under Agreements to Repurchase
(2.5
)
0.4
(2.1
)
Other Debt
(0.8
)
0.6
(0.2
)
Total Change in Interest Expense
(4.5
)
6.3
1.8
Change in Net Interest Income
$
16.1
$
12.9
$
29.0
1 The change in interest income and expense not solely due to
changes in volume or rate has been allocated on a pro-rata basis to
the volume and rate columns. 2 Comprised of other consumer
revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries Salaries and
Benefits Table 9
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
(dollars in thousands)
2022
2022
2021
2022
2021
Salaries
$
37,792
$
36,721
$
34,676
$
109,445
$
99,658
Incentive Compensation
5,885
6,073
4,677
18,069
15,763
Share-Based Compensation
3,558
3,962
3,335
11,319
9,093
Commission Expense
1,005
1,232
1,772
3,878
6,807
Retirement and Other Benefits
4,448
4,036
4,746
13,177
15,552
Payroll Taxes
2,826
3,034
2,825
10,804
9,819
Medical, Dental, and Life Insurance
2,605
2,591
3,222
8,430
8,850
Separation Expense
1,819
120
1,194
2,509
3,317
Total Salaries and Benefits
$
59,938
$
57,769
$
56,447
$
177,631
$
168,859
Bank of Hawaii Corporation and Subsidiaries Loan
and Lease Portfolio Balances Table 10
September 30,
June 30,
March 31,
December 31,
September 30,
(dollars in thousands)
2022
2022
2022
2021
2021
Commercial Commercial and Industrial
$
1,368,966
$
1,323,830
$
1,354,757
$
1,361,921
$
1,325,446
Paycheck Protection Program
22,955
31,964
57,809
126,779
268,480
Commercial Mortgage
3,591,943
3,464,126
3,257,689
3,152,130
2,994,520
Construction
236,498
246,177
248,363
220,254
296,052
Lease Financing
73,989
89,535
98,107
105,108
107,526
Total Commercial
5,294,351
5,155,632
5,016,725
4,966,192
4,992,024
Consumer Residential Mortgage
4,585,723
4,486,571
4,405,718
4,309,602
4,272,540
Home Equity
2,185,484
2,101,612
1,958,285
1,836,588
1,680,229
Automobile
820,640
775,065
742,934
736,565
727,234
Other 1
435,408
432,693
420,830
410,129
400,723
Total Consumer
8,027,255
7,795,941
7,527,767
7,292,884
7,080,726
Total Loans and Leases
$
13,321,606
$
12,951,573
$
12,544,492
$
12,259,076
$
12,072,750
Deposits
September 30,
June 30,
March 31,
December 31,
September 30,
(dollars in thousands)
2022
2022
2022
2021
2021
Consumer
$
10,507,946
$
10,554,121
$
10,654,192
$
10,438,844
$
10,150,199
Commercial
8,841,781
8,824,609
8,818,477
8,641,932
8,767,733
Public and Other
1,539,046
1,646,951
1,243,618
1,279,332
1,575,746
Total Deposits
$
20,888,773
$
21,025,681
$
20,716,287
$
20,360,108
$
20,493,678
1 Comprised of other revolving credit, installment, and lease
financing.
Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90
Days or More Table 11
September 30,
June 30,
March 31,
December 31,
September 30,
(dollars in thousands)
2022
2022
2022
2021
2021
Non-Performing Assets Non-Accrual Loans and Leases
Commercial Commercial and Industrial
$
49
$
85
$
99
$
243
$
209
Commercial Mortgage
3,396
3,462
8,065
8,205
8,309
Total Commercial
3,445
3,547
8,164
8,448
8,518
Consumer Residential Mortgage
4,945
5,179
3,845
3,305
4,348
Home Equity
4,438
4,435
5,638
4,881
5,422
Total Consumer
9,383
9,614
9,483
8,186
9,770
Total Non-Accrual Loans and Leases
12,828
13,161
17,647
16,634
18,288
Foreclosed Real Estate
1,040
2,332
2,332
2,332
2,332
Total Non-Performing Assets
$
13,868
$
15,493
$
19,979
$
18,966
$
20,620
Accruing Loans and Leases Past Due 90 Days or More
Commercial Commercial and Industrial
$
-
$
-
$
22
$
-
$
-
Total Commercial
-
-
22
-
-
Consumer Residential Mortgage
3,279
2,638
4,113
3,159
4,776
Home Equity
1,061
2,029
2,722
3,456
2,946
Automobile
467
359
504
729
395
Other 1
513
508
649
426
593
Total Consumer
5,320
5,534
7,988
7,770
8,710
Total Accruing Loans and Leases Past Due 90 Days or More
$
5,320
$
5,534
$
8,010
$
7,770
$
8,710
Restructured Loans on Accrual Status and Not Past Due 90 Days or
More
$
44,641
$
46,024
$
54,136
$
60,519
$
62,787
Total Loans and Leases
$
13,321,606
$
12,951,573
$
12,544,492
$
12,259,076
$
12,072,750
Ratio of Non-Accrual Loans and Leases to Total Loans and
Leases
0.10
%
0.10
%
0.14
%
0.14
%
0.15
%
Ratio of Non-Performing Assets to Total Loans and Leases and
Foreclosed Real Estate
0.10
%
0.12
%
0.16
%
0.15
%
0.17
%
Ratio of Non-Performing Assets to Total Assets
0.06
%
0.06
%
0.07
%
0.07
%
0.08
%
Ratio of Commercial Non-Performing Assets to Total
Commercial Loans and Leases and Commercial Foreclosed Real Estate
0.07
%
0.07
%
0.16
%
0.17
%
0.17
%
Ratio of Consumer Non-Performing Assets to Total Consumer
Loans and Leases and Consumer Foreclosed Real Estate
0.13
%
0.15
%
0.16
%
0.14
%
0.17
%
Ratio of Non-Performing Assets and Accruing Loans and Leases
Past Due 90 Days or More to Total Loans and Leases and Foreclosed
Real Estate
0.14
%
0.16
%
0.22
%
0.22
%
0.24
%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter
$
15,493
$
19,979
$
18,966
$
20,620
$
18,974
Additions
489
2,293
2,243
357
3,171
Reductions Payments
(706
)
(5,511
)
(1,230
)
(972
)
(889
)
Return to Accrual Status
(116
)
(1,267
)
-
(1,038
)
(606
)
Sales of Foreclosed Real Estate
(1,292
)
-
-
-
-
Charge-offs/Write-downs
-
(1
)
-
(1
)
(30
)
Total Reductions
(2,114
)
(6,779
)
(1,230
)
(2,011
)
(1,525
)
Balance at End of Quarter
$
13,868
$
15,493
$
19,979
$
18,966
$
20,620
1 Comprised of other revolving credit, installment, and lease
financing.
Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses Table 12
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
(dollars in thousands)
2022
2022
2021
2022
2021
Balance at Beginning of Period
$
154,098
$
157,264
$
186,371
$
164,297
$
221,303
Loans and Leases Charged-Off Commercial Commercial and
Industrial
(147
)
(233
)
(196
)
(729
)
(900
)
Consumer Residential Mortgage
-
(80
)
(197
)
(80
)
(316
)
Home Equity
-
(22
)
(289
)
(90
)
(412
)
Automobile
(794
)
(1,157
)
(576
)
(3,481
)
(3,894
)
Other 1
(1,924
)
(1,854
)
(2,187
)
(5,739
)
(8,523
)
Total Loans and Leases Charged-Off
(2,865
)
(3,346
)
(3,445
)
(10,119
)
(14,045
)
Recoveries on Loans and Leases Previously Charged-Off Commercial
Commercial and Industrial
45
51
118
465
374
Consumer Residential Mortgage
156
920
173
1,130
1,609
Home Equity
367
416
216
1,298
1,276
Automobile
441
684
943
1,864
3,034
Other 1
709
644
802
2,098
2,459
Total Recoveries on Loans and Leases Previously Charged-Off
1,718
2,715
2,252
6,855
8,752
Net Charged-Off - Loans and Leases
(1,147
)
(631
)
(1,193
)
(3,264
)
(5,293
)
Net Charged-Off - Accrued Interest Receivable
-
-
(70
)
(47
)
(502
)
Provision for Credit Losses: Loans and Leases
(929
)
(2,885
)
(11,272
)
(8,121
)
(43,039
)
Accrued Interest Receivable
-
-
(703
)
(367
)
(1,531
)
Unfunded Commitments
905
350
1,575
429
3,770
Balance at End of Period
$
152,927
$
154,098
$
174,708
$
152,927
$
174,708
Components Allowance for Credit Losses - Loans and
Leases
$
146,436
$
148,512
$
167,920
$
146,436
$
167,920
Allowance for Credit Losses - Accrued Interest Receivable
-
-
667
-
667
Reserve for Unfunded Commitments
6,491
5,586
6,121
6,491
6,121
Total Reserve for Credit Losses
$
152,927
$
154,098
$
174,708
$
152,927
$
174,708
Average Loans and Leases Outstanding
$
13,126,717
$
12,700,825
$
11,958,321
$
12,709,045
$
12,002,426
Ratio of Net Loans and Leases Charged-Off to Average Loans
and Leases Outstanding (annualized)
0.03
%
0.02
%
0.04
%
0.03
%
0.06
%
Ratio of Allowance for Credit Losses to Loans and Leases
Outstanding 2
1.10
%
1.15
%
1.39
%
1.10
%
1.39
%
1 Comprised of other revolving credit, installment, and lease
financing. 2 The numerator comprises the Allowance for Credit
Losses - Loans and Leases.
Bank of Hawaii Corporation and
Subsidiaries Business Segments Selected Financial
Information Table 13a Consumer Commercial
Treasury Consolidated (dollars in thousands)
Banking Banking and Other Total
Three Months Ended September 30, 2022 Net Interest Income
(Loss)
$
85,666
$
56,249
$
(260
)
$
141,655
Provision for Credit Losses
1,148
(1
)
(1,147
)
-
Net Interest Income After Provision for Credit Losses
84,518
56,250
887
141,655
Noninterest Income (Loss)
30,974
(911
)
597
30,660
Noninterest Expense
(83,278
)
(17,073
)
(5,398
)
(105,749
)
Income (Loss) Before Income Taxes
32,214
38,266
(3,914
)
66,566
Provision for Income Taxes
(8,104
)
(9,273
)
3,612
(13,765
)
Net Income (Loss)
$
24,110
$
28,993
$
(302
)
$
52,801
Total Assets as of September 30, 2022
$
8,399,068
$
5,486,330
$
9,248,642
$
23,134,040
Three Months Ended September 30, 2021 Net Interest
Income
$
72,062
$
50,088
$
4,669
$
126,819
Provision for Credit Losses
1,235
(42
)
(11,593
)
(10,400
)
Net Interest Income After Provision for Credit Losses
70,827
50,130
16,262
137,219
Noninterest Income
32,046
7,906
1,426
41,378
Noninterest Expense
(71,377
)
(15,924
)
(9,218
)
(96,519
)
Income Before Income Taxes
31,496
42,112
8,470
82,078
Provision for Income Taxes
(8,001
)
(10,373
)
(1,651
)
(20,025
)
Net Income
$
23,495
$
31,739
$
6,819
$
62,053
Total Assets as of September 30, 2021
$
7,530,513
$
5,087,831
$
10,347,039
$
22,965,383
Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information Table
13b Consumer Commercial Treasury
Consolidated (dollars in thousands)
Banking
Banking and Other Total Nine Months Ended
September 30, 2022 1 Net Interest Income
$
232,654
$
152,391
$
14,775
$
399,820
Provision for Credit Losses
3,463
(200
)
(11,263
)
(8,000
)
Net Interest Income After Provision for Credit Losses
229,191
152,591
26,038
407,820
Noninterest Income
94,811
17,650
3,908
116,369
Noninterest Expense
(247,724
)
(52,757
)
(12,081
)
(312,562
)
Income Before Income Taxes
76,278
117,484
17,865
211,627
Provision for Income Taxes
(19,151
)
(28,721
)
742
(47,130
)
Net Income
$
57,127
$
88,763
$
18,607
$
164,497
Total Assets as of September 30, 2022 1
$
8,399,068
$
5,486,330
$
9,248,642
$
23,134,040
Nine Months Ended September 30, 2021 Net Interest
Income
$
212,991
$
146,269
$
11,642
$
370,902
Provision for Credit Losses
5,088
205
(46,093
)
(40,800
)
Net Interest Income After Provision for Credit Losses
207,903
146,064
57,735
411,702
Noninterest Income
98,344
22,339
8,096
128,779
Noninterest Expense
(222,426
)
(47,343
)
(22,142
)
(291,911
)
Income Before Income Taxes
83,821
121,060
43,689
248,570
Provision for Income Taxes
(20,840
)
(29,634
)
(8,561
)
(59,035
)
Net Income
$
62,981
$
91,426
$
35,128
$
189,535
Total Assets as of September 30, 2021
$
7,530,513
$
5,087,831
$
10,347,039
$
22,965,383
1 Certain prior period information has been reclassified to conform
to current presentation.
Bank of Hawaii Corporation and
Subsidiaries Selected Quarterly Financial Data Table
14
Three Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
(dollars in thousands, except per share amounts)
2022
2022
2022
2021
2021
Quarterly Operating Results Interest Income Interest and
Fees on Loans and Leases
$
115,013
$
101,663
$
94,439
$
97,853
$
100,570
Income on Investment Securities Available-for-Sale
16,995
17,984
17,100
15,850
16,396
Held-to-Maturity
20,243
18,838
18,701
18,325
16,754
Deposits
10
5
4
1
2
Funds Sold
2,335
719
127
104
382
Other
322
353
202
176
159
Total Interest Income
154,918
139,562
130,573
132,309
134,263
Interest Expense Deposits
10,296
3,535
2,353
2,898
3,837
Securities Sold Under Agreements to Repurchase
2,745
2,794
2,772
2,834
3,423
Funds Purchased
40
57
2
6
-
Short-Term Borrowings
-
92
-
-
-
Other Debt
182
182
183
183
184
Total Interest Expense
13,263
6,660
5,310
5,921
7,444
Net Interest Income
141,655
132,902
125,263
126,388
126,819
Provision for Credit Losses
-
(2,500
)
(5,500
)
(9,700
)
(10,400
)
Net Interest Income After Provision for Credit Losses
141,655
135,402
130,763
136,088
137,219
Noninterest Income Trust and Asset Management
10,418
11,457
11,276
11,693
11,415
Mortgage Banking
1,002
1,247
2,740
2,908
3,136
Service Charges on Deposit Accounts
7,526
7,309
7,272
6,861
6,510
Fees, Exchange, and Other Service Charges
13,863
14,193
12,952
14,439
13,604
Investment Securities Losses, Net
(2,147
)
(1,295
)
(1,545
)
(1,258
)
(1,259
)
Annuity and Insurance
1,034
870
791
876
735
Bank-Owned Life Insurance
2,486
2,658
2,349
1,907
1,897
Other
(3,522
)
5,719
7,716
5,148
5,340
Total Noninterest Income
30,660
42,158
43,551
42,574
41,378
Noninterest Expense Salaries and Benefits
59,938
57,769
59,924
59,434
56,447
Net Occupancy
10,186
9,930
9,826
9,028
3,079
Net Equipment
9,736
9,543
9,153
9,105
8,924
Data Processing
4,616
4,607
4,560
4,696
4,722
Professional Fees
3,799
3,542
3,258
3,427
2,948
FDIC Insurance
1,680
1,590
1,502
1,619
1,594
Other
15,794
15,958
15,651
14,369
18,805
Total Noninterest Expense
105,749
102,939
103,874
101,678
96,519
Income Before Provision for Income Taxes
66,566
74,621
70,440
76,984
82,078
Provision for Income Taxes
13,765
17,759
15,606
13,147
20,025
Net Income
$
52,801
$
56,862
$
54,834
$
63,837
$
62,053
Preferred Stock Dividends
1,969
1,969
1,969
1,969
1,006
Net Income Available to Common Shareholders
$
50,832
$
54,893
$
52,865
$
61,868
$
61,047
Basic Earnings Per Common Share
$
1.28
$
1.38
$
1.33
$
1.56
$
1.53
Diluted Earnings Per Common Share
$
1.28
$
1.38
$
1.32
$
1.55
$
1.52
Balance Sheet Totals Loans and Leases
$
13,321,606
$
12,951,573
$
12,544,492
$
12,259,076
$
12,072,750
Total Assets
23,134,040
23,232,699
23,000,317
22,784,941
22,965,383
Total Deposits
20,888,773
21,025,681
20,716,287
20,360,108
20,493,678
Total Shareholders' Equity
1,282,384
1,348,746
1,448,885
1,611,611
1,597,109
Performance Ratios Return on Average Assets
0.91
%
1.00
%
0.97
%
1.12
%
1.07
%
Return on Average Shareholders' Equity
15.31
16.40
14.18
15.92
15.41
Return on Average Common Equity
16.98
18.19
15.44
17.40
17.08
Efficiency Ratio 1
61.37
58.80
61.53
60.18
57.38
Net Interest Margin 2
2.60
2.47
2.34
2.34
2.32
1 Efficiency ratio is defined as noninterest expense divided by
total revenue (net interest income and noninterest income). 2 Net
interest margin is defined as net interest income, on a
taxable-equivalent basis, as a percentage of average earning
assets.
Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends Table 15
Eight Months Ended
Year Ended
(dollars in millions; jobs in thousands)
August 31, 2022
December 31, 2021
December 31, 2020
Hawaii Economic Trends State General Fund Revenues 1
$
6,698.4
26.0
%
$
8,137.9
26.9
%
$
6,415.1
(12.3
)%
General Excise and Use Tax Revenue 1
2,858.8
20.7
3,604.3
18.6
3,038.8
(15.6
)
Jobs 2
651.6
642.6
594.4
August 31,
December 31,
2022
2021
2020
Unemployment, seasonally adjusted 3 Statewide
4.1
%
4.3
%
9.8
%
Honolulu County
3.8
4.0
8.8
Hawaii County
4.2
4.2
9.3
Maui County
4.8
5.4
13.9
Kauai County
5.4
6.0
13.6
September 30,
December 31,
(1-year percentage change, except months of inventory)
2022
2021
2020
2019
Housing Trends (Single Family Oahu) 4 Median Home Price
13.9
%
19.3
%
5.2
%
(0.1
)%
Home Sales Volume (units)
(15.8
)%
17.9
%
2.3
%
3.9
%
Months of Inventory
1.9
0.8
1.4
2.5
Monthly Visitor
Arrivals,
Percentage Change
(in thousands)
Not Seasonally
Adjusted
from Previous Year
Tourism 5 August 31, 2022
829.7
14.8
%
July 31, 2022
919.2
4.5
June 30, 2022
841.8
6.4
May 31, 2022
774.1
22.9
April 30, 2022
809.6
67.3
March 31, 2022
785.7
78.7
February 28, 2022
623.7
165.1
January 31, 2022
567.2
229.8
December 31, 2021
753.7
219.6
November 30, 2021
613.4
233.8
October 31, 2021
550.8
618.2
September 30, 2021
505.9
2,647.9
August 31, 2021
723.0
2,995.6
July 31, 2021
879.6
3,798.4
June 30, 2021
791.1
4,534.7
May 31, 2021
629.7
6,807.4
April 30, 2021
484.1
10,506.3
March 31, 2021
439.8
1.1
February 28, 2021
235.3
(71.6
)
January 31, 2021
172.0
(80.1
)
December 31, 2020
235.8
(75.2
)
November 30, 2020
183.8
(77.3
)
October 31, 2020
76.7
(90.4
)
September 30, 2020
18.4
(97.5
)
August 31, 2020
23.4
(97.5
)
July 31, 2020
22.6
(97.7
)
June 30, 2020
17.1
(98.2
)
May 31, 2020
9.1
(98.9
)
April 30, 2020
4.6
(99.5
)
March 31, 2020
434.9
(53.7
)
February 29, 2020
828.1
5.8
January 31, 2020
862.6
5.1
1 Source: Hawaii Department of Business, Economic Development &
Tourism 2 Source: U.S. Bureau of Labor Statistics 3 Source:
University of Hawaii Economic Research Organization (UHERO) 4
Source: Honolulu Board of Realtors 5 Source: Hawaii Tourism
Authority
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221024005301/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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