- 2022 Diluted Earnings Per Common Share $5.48
- 2022 Net Income $225.8 Million
- Diluted Earnings Per Common Share $1.50 for the Fourth
Quarter of 2022
- Net Income $61.3 Million for the Fourth Quarter of
2022
- 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 $5.48 for the full year of 2022,
compared with diluted earnings per common share of $6.25 for the
full year of 2021. Net income for the year was $225.8 million, down
10.9% from the previous year. Return on average assets for the full
year of 2022 was 0.98%, compared to 1.14% in 2021. Return on
average common equity for the full year of 2022 was 17.83% compared
to 17.92% in 2021.
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Diluted earnings per common share for the fourth quarter of 2022
was $1.50, compared with diluted earnings per common share of $1.28
in the previous quarter and $1.55 in the same quarter last year.
Net income for the fourth quarter of 2022 was $61.3 million, up
16.1% from the third quarter of 2022 and down 4.0% from the fourth
quarter of 2021. The increase from the third quarter of 2022 was
primarily due to a one-time charge in the third quarter related to
our agreement to sell assets that terminated certain leveraged
leases.
“Bank of Hawai‘i ended 2022 with strong financial performance,”
said Peter Ho, Chairman, President, and CEO. “As we look forward
into 2023, we are well positioned for a challenging environment,
thanks to our leading market position, superior credit quality,
disciplined expense management, and strong liquidity and
capital.”
Financial Highlights
- The return on average assets for the fourth quarter of 2022 was
1.05% compared with 0.91% in the previous quarter and 1.12% in the
same quarter of 2021.
- The return on average common equity for the fourth quarter of
2022 was 21.28% compared with 16.98% in the previous quarter and
17.40% in the same quarter of 2021.
- Net interest income for the fourth quarter of 2022 was $140.7
million, a decrease of 0.6% from the third quarter of 2022 and an
increase of 11.4% from the fourth quarter of 2021. Net interest
margin was 2.60% in the fourth quarter of 2022, unchanged from the
previous quarter and an increase of 26 basis points from the same
quarter of 2021.
- The increase in net interest income and margin in the fourth
quarter of 2022 compared to the prior year was due to the higher
rate environment and strong loan growth over the year.
- There was a $0.2 million provision for credit losses for the
fourth quarter of 2022 compared with no provision in the previous
quarter and a net benefit of $9.7 million in the same quarter of
2021.
- Noninterest income was $41.2 million in the fourth quarter of
2022, an increase of 34.3% from the previous quarter and a decrease
of 3.3% from the same quarter of 2021.
- Noninterest income in the third quarter of 2022 included a
one-time pre-tax charge of $6.9 million related to our agreement to
sell assets that terminated leveraged leases related to 31
locomotives. In addition, noninterest income in the third quarter
also included a negative adjustment of $0.9 million related to a
change in the Visa Class B conversion ratio.
- Noninterest expense was $102.7 million in the fourth quarter of
2022, a decrease of 2.9% from the previous quarter and an increase
of 1.0% from the same quarter of 2021.
- Noninterest expense in the third quarter of 2022 included $1.8
million in separation expenses.
- The effective tax rate for the fourth quarter of 2022 was 22.4%
compared with 20.7% in the previous quarter and 17.1% during the
same quarter of 2021.
- The lower effective tax rate in the prior quarter was primarily
due to tax benefits related to the aforementioned agreement to sell
assets that terminated certain leveraged leases.
- The lower effective tax rate in the fourth quarter of 2021
included a $3.6 million benefit due to larger than expected tax
credits from 2020 and a reduction in the valuation allowance
related to low-income housing partnerships.
Asset Quality
The Company’s overall asset quality remained strong during the
fourth quarter of 2022.
- Total non-performing assets were $12.6 million at December 31,
2022, down $1.2 million from September 30, 2022 and down $6.3
million from December 31, 2021. Non-performing assets as a
percentage of total loans and leases and foreclosed real estate
were 0.09% at the end of the quarter, a decrease of 1 basis point
from the end of the prior quarter and a decrease of 6 basis points
from the same quarter of 2021.
- Net loan and lease charge-offs during the fourth quarter of
2022 were $1.9 million or 0.05% annualized of total average loans
and leases outstanding.
- Net loan and lease charge-offs for the fourth quarter of 2022
were comprised of charge-offs of $3.2 million partially offset by
recoveries of $1.4 million.
- Compared to the prior quarter, net loan and lease charge-offs
increased by $0.7 million or 2 basis points annualized on total
average loans and leases outstanding.
- Compared to the same quarter of 2021, net loan and lease
charge-offs increased by $1.2 million or 3 basis points annualized
on total average loans and leases outstanding.
- The allowance for credit losses on loans and leases was $144.4
million at December 31, 2022, a decrease of $2.0 million from
September 30, 2022 and a decrease of $13.4 million from December
31, 2021. The ratio of the allowance for credit losses to total
loans and leases outstanding was 1.06% at the end of the quarter,
down 4 basis points from the end of the prior quarter and down 23
basis points from the end of the same quarter of 2021.
Balance Sheet
- Total assets were $23.6 billion at December 31, 2022, an
increase of 2.0% from September 30, 2022 and an increase of 3.6%
from December 31, 2021.
- The investment securities portfolio was $8.3 billion at
December 31, 2022, an increase of 4.7% from September 30, 2022 and
a decrease of 7.9% from December 31, 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 $13.6 billion at December 31, 2022,
an increase of 2.4% from September 30, 2022 and an increase of
11.3% from December 31, 2021.
- Total loans and leases excluding PPP loans were $13.6 billion
at December 31, 2022, an increase of 2.5% from September 30, 2022
and an increase of 12.3% from December 31, 2021.
- Total deposits were $20.6 billion at December 31, 2022, a
decrease of 1.3% from September 30, 2022 and an increase of 1.3%
from December 31, 2021.
Capital and Dividends
- The Tier 1 Capital Ratio was 12.15% at December 31, 2022
compared with 12.72% at September 30, 2022 and 13.56% at December
31, 2021.
- The Tier 1 Leverage Ratio was 7.37% at December 31, 2022
compared with 7.28% at September 30, 2022 and 7.32% at December 31,
2021.
- The Company repurchased 192.3 thousand shares of common stock
at a total cost of $15.0 million under its share repurchase program
in the fourth quarter of 2022 at an average cost of $77.77 per
share repurchased.
- The Company’s Board of Directors increased the authorization
under the share repurchase program by an additional $100.0 million.
Total remaining buyback authority under the share repurchase
program was $135.9 million at January 20, 2023.
- 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 March 14, 2023 to
shareholders of record at the close of business on February 28,
2023.
- On January 4, 2023, 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 February 1, 2023 to shareholders of record of the
preferred stock at the close of business on January 17, 2023.
Conference Call
Information
The Company will review its fourth quarter financial results
today at 8:00 a.m. Hawaii Time (1:00 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/BIdfc785c2e350424681d5c04507f9b94f.
- A replay of the conference call will be available for one year
beginning approximately 11:00 a.m. Hawaii Time on Monday, January
23, 2023. 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, June
30, 2022 and September 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 Hawai‘i Corporation and Subsidiaries Financial
Highlights Table 1 Three Months Ended Year
Ended December 31, September 30, December
31, December 31, (dollars in thousands, except per share
amounts)
2022
2022
2021
2022
2021
For the Period: Operating
Results Net Interest Income
$
140,738
$
141,655
$
126,388
$
540,558
$
497,290
Provision for Credit Losses
200
-
(9,700
)
(7,800
)
(50,500
)
Total Noninterest Income
41,172
30,660
42,574
157,541
171,353
Total Noninterest Expense
102,703
105,749
101,678
415,265
393,589
Pre-Provision Net Revenue
79,207
66,566
67,284
282,834
275,054
Net Income
61,307
52,801
63,837
225,804
253,372
Net Income Available to Common Shareholders
59,338
50,832
61,868
217,928
250,397
Basic Earnings Per Common Share
1.51
1.28
1.56
5.50
6.29
Diluted Earnings Per Common Share
1.50
1.28
1.55
5.48
6.25
Dividends Declared Per Common Share
0.70
0.70
0.70
2.80
2.74
Performance Ratios Return on Average Assets
1.05
%
0.91
%
1.12
%
0.98
%
1.14
%
Return on Average Shareholders' Equity
18.91
15.31
15.92
16.10
16.94
Return on Average Common Equity
21.28
16.98
17.40
17.83
17.92
Efficiency Ratio 1
56.46
61.37
60.18
59.49
58.86
Net Interest Margin 2
2.60
2.60
2.34
2.50
2.36
Dividend Payout Ratio 3
46.36
54.69
44.87
50.91
43.56
Average Shareholders' Equity to Average Assets
5.56
5.91
7.02
6.10
6.73
Average Balances Average Loans and Leases
$
13,452,791
$
13,126,717
$
12,086,705
$
12,896,510
$
12,023,669
Average Assets
23,147,398
23,135,820
22,666,280
23,006,671
22,227,156
Average Deposits
20,341,327
20,863,681
20,222,470
20,550,739
19,771,147
Average Shareholders' Equity
1,286,291
1,367,946
1,590,600
1,402,533
1,495,586
Per Share of Common Stock Book Value
$
28.54
$
27.55
$
35.57
$
28.54
$
35.57
Tangible Book Value
27.75
26.76
34.78
27.75
34.78
Market Value Closing
77.56
76.12
83.76
77.56
83.76
High
82.87
85.45
88.96
92.38
99.10
Low
70.15
70.89
78.73
70.15
75.65
December 31, September 30, December 31,
2022
2022
2021
As of Period End: Balance
Sheet Totals Loans and Leases
$
13,646,420
$
13,321,606
$
12,259,076
Total Assets
23,606,877
23,134,040
22,784,941
Total Deposits
20,615,696
20,888,773
20,360,108
Other Debt
410,294
10,319
10,391
Total Shareholders' Equity
1,316,995
1,282,384
1,611,611
Asset Quality Non-Performing Assets
$
12,647
$
13,868
$
18,966
Allowance for Credit Losses - Loans and Leases
144,439
146,436
157,821
Allowance to Loans and Leases Outstanding 4
1.06
%
1.10
%
1.29
%
Capital Ratios 5 Common Equity Tier 1 Capital Ratio
10.92
%
11.42
%
12.12
%
Tier 1 Capital Ratio
12.15
12.72
13.56
Total Capital Ratio
13.17
13.82
14.81
Tier 1 Leverage Ratio
7.37
7.28
7.32
Total Shareholders' Equity to Total Assets
5.58
5.54
7.07
Tangible Common Equity to Tangible Assets 6
4.69
4.64
6.15
Tangible Common Equity to Risk-Weighted Assets 6
7.76
7.97
11.44
Non-Financial Data Full-Time Equivalent Employees
2,076
2,115
2,056
Branches
51
51
54
ATMs
320
316
307
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
The numerator comprises the Allowance for Credit Losses - Loans and
Leases.
5
Regulatory capital ratios as of December 31, 2022 are preliminary.
6
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 Hawai‘i Corporation and
Subsidiaries Reconciliation of Non-GAAP Financial
Measures Table 2
December 31,
September 30,
December 31,
(dollars in thousands)
2022
2022
2021
Total Shareholders' Equity
$
1,316,995
$
1,282,384
$
1,611,611
Less: Preferred Stock
180,000
180,000
180,000
Goodwill
31,517
31,517
31,517
Tangible Common Equity
$
1,105,478
$
1,070,867
$
1,400,094
Total Assets
23,606,877
23,134,040
22,784,941
Less: Goodwill
31,517
31,517
31,517
Tangible Assets
$
23,575,360
$
23,102,523
$
22,753,424
Risk-Weighted Assets, determined in accordance with
prescribed regulatory requirements 1
$
14,238,798
$
13,428,188
$
12,236,805
Total Shareholders' Equity to Total Assets
5.58
%
5.54
%
7.07
%
Tangible Common Equity to Tangible Assets (Non-GAAP)
4.69
%
4.64
%
6.15
%
Tier 1 Capital Ratio 1
12.15
%
12.72
%
13.56
%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1
7.76
%
7.97
%
11.44
%
1
Regulatory capital ratios as of December 31, 2022 are preliminary.
Bank of Hawai‘i Corporation and Subsidiaries Consolidated
Statements of Income Table 3 Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
(dollars in thousands, except per share amounts)
2022
2022
2021
2022
2021
Interest Income Interest and Fees on Loans and Leases
$
128,683
$
115,013
$
97,853
$
439,798
$
398,616
Income on Investment Securities Available-for-Sale
18,476
16,995
15,850
70,555
64,550
Held-to-Maturity
23,708
20,243
18,325
81,490
61,955
Deposits
13
10
1
32
10
Funds Sold
1,093
2,335
104
4,274
883
Other
340
322
176
1,217
702
Total Interest Income
172,313
154,918
132,309
597,366
526,716
Interest Expense Deposits
23,494
10,296
2,898
39,678
15,216
Securities Sold Under Agreements to Repurchase
4,289
2,745
2,834
12,600
13,260
Funds Purchased
318
40
6
417
7
Short-Term Borrowings
1,978
-
-
2,070
-
Other Debt
1,496
182
183
2,043
943
Total Interest Expense
31,575
13,263
5,921
56,808
29,426
Net Interest Income
140,738
141,655
126,388
540,558
497,290
Provision for Credit Losses
200
-
(9,700
)
(7,800
)
(50,500
)
Net Interest Income After Provision for Credit Losses
140,538
141,655
136,088
548,358
547,790
Noninterest Income Trust and Asset Management
10,652
10,418
11,693
43,803
46,068
Mortgage Banking
991
1,002
2,908
5,980
14,964
Service Charges on Deposit Accounts
7,513
7,526
6,861
29,620
25,564
Fees, Exchange, and Other Service Charges
13,906
13,863
14,439
54,914
55,457
Investment Securities Losses, Net
(1,124
)
(2,147
)
(1,258
)
(6,111
)
(1,297
)
Annuity and Insurance
1,087
1,034
876
3,782
3,224
Bank-Owned Life Insurance
2,475
2,486
1,907
9,968
7,784
Other
5,672
(3,522
)
5,148
15,585
19,589
Total Noninterest Income
41,172
30,660
42,574
157,541
171,353
Noninterest Expense Salaries and Benefits
57,639
59,938
59,434
235,270
228,293
Net Occupancy
9,499
10,186
9,028
39,441
26,244
Net Equipment
9,942
9,736
9,105
38,374
35,703
Data Processing
4,579
4,616
4,696
18,362
20,297
Professional Fees
3,958
3,799
3,427
14,557
12,895
FDIC Insurance
1,774
1,680
1,619
6,546
6,536
Other
15,312
15,794
14,369
62,715
63,621
Total Noninterest Expense
102,703
105,749
101,678
415,265
393,589
Income Before Provision for Income Taxes
79,007
66,566
76,984
290,634
325,554
Provision for Income Taxes
17,700
13,765
13,147
64,830
72,182
Net Income
$
61,307
$
52,801
$
63,837
$
225,804
$
253,372
Preferred Stock Dividends
1,969
1,969
1,969
7,877
2,975
Net Income Available to Common Shareholders
$
59,338
$
50,832
$
61,868
$
217,927
$
250,397
Basic Earnings Per Common Share
$
1.51
$
1.28
$
1.56
$
5.50
$
6.29
Diluted Earnings Per Common Share
$
1.50
$
1.28
$
1.55
$
5.48
$
6.25
Dividends Declared Per Common Share
$
0.70
$
0.70
$
0.70
$
2.80
$
2.74
Basic Weighted Average Common Shares
39,395,338
39,567,047
39,741,063
39,601,089
39,837,798
Diluted Weighted Average Common Shares
39,618,896
39,758,209
39,955,525
39,788,002
40,053,664
Bank of Hawai‘i Corporation and Subsidiaries Consolidated
Statements of Comprehensive Income (Loss) Table 4
Three Months Ended Year Ended December 31,
September 30, December 31, December 31,
(dollars in thousands)
2022
2022
2021
2022
2021
Net Income
$
61,307
$
52,801
$
63,837
$
225,804
$
253,372
Other Comprehensive Income (Loss), Net of Tax: Net Unrealized Gains
(Losses) on Investment Securities
5,677
(79,600
)
(26,244
)
(376,694
)
(83,958
)
Defined Benefit Plans
7,359
354
8,430
8,418
9,754
Other Comprehensive Income (Loss)
13,036
(79,246
)
(17,814
)
(368,276
)
(74,204
)
Comprehensive Income (Loss)
$
74,343
$
(26,445
)
$
46,023
$
(142,472
)
$
179,168
Bank of Hawai‘i Corporation and Subsidiaries Consolidated
Statements of Condition Table 5
December 31,
September 30,
December 31,
(dollars in thousands)
2022
2022
2021
Assets Interest-Bearing Deposits in Other Banks
$
3,724
$
5,429
$
2,571
Funds Sold
81,364
402,714
361,536
Investment Securities Available-for-Sale
2,844,823
2,424,608
4,276,056
Held-to-Maturity (Fair Value of $4,615,393; $4,668,074; and
$4,646,619)
5,414,139
5,461,160
4,694,780
Loans Held for Sale
1,035
418
26,746
Loans and Leases
13,646,420
13,321,606
12,259,076
Allowance for Credit Losses
(144,439
)
(146,436
)
(157,821
)
Net Loans and Leases
13,501,981
13,175,170
12,101,255
Total Earning Assets
21,847,066
21,469,499
21,462,944
Cash and Due from Banks
316,679
247,506
196,327
Premises and Equipment, Net
206,777
208,251
199,393
Operating Lease Right-of-Use Assets
92,307
94,613
95,621
Accrued Interest Receivable
61,002
50,143
45,242
Foreclosed Real Estate
1,040
1,040
2,332
Mortgage Servicing Rights
22,619
23,104
22,251
Goodwill
31,517
31,517
31,517
Bank-Owned Life Insurance
453,882
451,407
344,587
Other Assets
573,988
556,960
384,727
Total Assets
$
23,606,877
$
23,134,040
$
22,784,941
Liabilities Deposits Noninterest-Bearing Demand
$
6,714,982
$
7,300,157
$
7,275,287
Interest-Bearing Demand
4,232,567
4,399,625
4,628,567
Savings
7,962,410
7,954,006
7,456,165
Time
1,705,737
1,234,985
1,000,089
Total Deposits
20,615,696
20,888,773
20,360,108
Securities Sold Under Agreements to Repurchase
725,490
425,490
450,490
Other Debt
410,294
10,319
10,391
Operating Lease Liabilities
100,526
102,705
103,210
Retirement Benefits Payable
26,991
37,053
38,494
Accrued Interest Payable
9,698
3,405
2,499
Taxes Payable
7,104
13,527
11,901
Other Liabilities
394,083
370,384
196,237
Total Liabilities
22,289,882
21,851,656
21,173,330
Shareholders' Equity Preferred Stock ($.01 par value;
authorized 180,000 shares; issued / outstanding: December 31, 2022;
September 30, 2022; and December 31, 2021 - 180,000)
180,000
180,000
180,000
Common Stock ($.01 par value; authorized 500,000,000 shares; issued
/ outstanding: December 31, 2022 - 58,733,625 / 39,835,750;
September 30, 2022 - 58,728,796 / 40,011,473; and December 31, 2021
- 58,554,669 / 40,253,193)
582
582
581
Capital Surplus
620,578
615,985
602,508
Accumulated Other Comprehensive Loss
(434,658
)
(447,694
)
(66,382
)
Retained Earnings
2,055,912
2,024,641
1,950,375
Treasury Stock, at Cost (Shares: December 31, 2022 - 18,897,875;
September 30, 2022 - 18,717,323; and December 31, 2021 -
18,301,476)
(1,105,419
)
(1,091,130
)
(1,055,471
)
Total Shareholders' Equity
1,316,995
1,282,384
1,611,611
Total Liabilities and Shareholders' Equity
$
23,606,877
$
23,134,040
$
22,784,941
Bank of Hawai‘i Corporation and Subsidiaries Consolidated
Statements of Shareholders' Equity Table 6
Accumulated Other Preferred Common
Comprehensive 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, 2020
-
$
-
40,119,312
$
580
$
591,360
$
7,822
$
1,811,979
$
(1,037,234
)
$
1,374,507
Net Income
-
-
-
-
-
-
253,372
-
253,372
Other Comprehensive Loss
-
-
-
-
-
(74,204
)
-
-
(74,204
)
Share-Based Compensation
-
-
-
-
13,267
-
-
-
13,267
Preferred Stock Issued, Net
180,000
180,000
-
-
(4,513
)
-
-
-
175,487
Common Stock Issued under Purchase and Equity Compensation Plans
and Related Tax Benefits
-
-
507,121
1
2,394
-
(1,368
)
13,021
14,048
Common Stock Repurchased
-
-
(373,240
)
-
-
-
-
(31,258
)
(31,258
)
Cash Dividends Declared Common Stock ($2.74 per share)
-
-
-
-
-
-
(110,633
)
-
(110,633
)
Cash Dividends Declared Preferred Stock
-
-
-
-
-
-
(2,975
)
-
(2,975
)
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
-
-
-
-
-
-
225,804
-
225,804
Other Comprehensive Loss
-
-
-
-
-
(368,276
)
-
-
(368,276
)
Share-Based Compensation
-
-
-
-
16,066
-
-
-
16,066
Common Stock Issued under Purchase and Equity Compensation Plans
and Related Tax Benefits
-
-
272,007
1
2,004
-
167
5,115
7,287
Common Stock Repurchased
-
-
(689,450
)
-
-
-
-
(55,063
)
(55,063
)
Cash Dividends Declared Common Stock ($2.80 per share)
-
-
-
-
-
-
(112,557
)
-
(112,557
)
Cash Dividends Declared Preferred Stock
-
-
-
-
-
-
(7,877
)
-
(7,877
)
Balance as of December 31, 2022
180,000
$
180,000
39,835,750
$
582
$
620,578
$
(434,658
)
$
2,055,912
$
(1,105,419
)
$
1,316,995
Bank of Hawai‘i Corporation and Subsidiaries Average
Balances and Interest Rates - Taxable-Equivalent Basis 1
Table 7a Three Months Ended Three Months Ended
Three Months Ended December 31, 2022 September 30,
2022 December 31, 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
$
2.2
$
-
2.32
%
$
2.9
$
-
1.32
%
$
2.2
$
-
0.05
%
Funds Sold
118.1
1.2
3.62
411.8
2.3
2.22
273.2
0.1
0.15
Investment Securities Available-for-Sale Taxable
2,593.5
18.4
2.83
3,481.9
17.0
1.95
4,308.6
15.8
1.47
Non-Taxable
7.5
0.1
4.14
2.5
-
1.56
5.8
0.1
3.67
Held-to-Maturity Taxable
5,401.9
23.5
1.74
4,645.7
20.1
1.73
4,757.4
18.1
1.52
Non-Taxable
35.4
0.2
2.10
35.6
0.2
2.10
58.0
0.3
2.31
Total Investment Securities
8,038.3
42.2
2.10
8,165.7
37.3
1.82
9,129.8
34.3
1.50
Loans Held for Sale
3.3
-
5.65
4.3
0.1
4.46
20.8
0.1
2.85
Loans and Leases 3 Commercial and Industrial
1,379.9
14.8
4.25
1,353.8
12.5
3.66
1,297.0
8.9
2.72
Paycheck Protection Program
21.3
0.1
2.30
28.0
0.2
3.02
181.0
5.7
12.55
Commercial Mortgage
3,627.4
40.6
4.44
3,530.9
33.3
3.74
3,075.1
22.2
2.86
Construction
246.9
3.3
5.29
233.0
2.8
4.81
246.8
2.2
3.50
Commercial Lease Financing
72.0
0.3
1.49
89.1
0.4
1.58
107.4
0.3
1.12
Residential Mortgage
4,617.9
38.9
3.37
4,526.6
37.4
3.30
4,293.6
33.9
3.16
Home Equity
2,207.7
17.9
3.23
2,144.8
16.4
3.04
1,757.8
12.8
2.88
Automobile
851.1
7.0
3.29
795.5
6.4
3.19
730.2
6.1
3.34
Other 4
428.6
6.1
5.64
425.0
5.9
5.48
397.8
5.8
5.79
Total Loans and Leases
13,452.8
129.0
3.81
13,126.7
115.3
3.49
12,086.7
97.9
3.22
Other
50.1
0.4
2.72
36.9
0.3
3.49
34.4
0.2
2.05
Total Earning Assets
21,664.8
172.8
3.17
21,748.3
155.3
2.84
21,547.1
132.6
2.45
Cash and Due from Banks
244.3
233.5
231.3
Other Assets
1,238.3
1,154.0
887.9
Total Assets
$
23,147.4
$
23,135.8
$
22,666.3
Interest-Bearing Liabilities Interest-Bearing
Deposits Demand
$
4,131.4
3.5
0.33
$
4,286.0
1.4
0.13
$
4,685.7
0.7
0.06
Savings
7,869.9
13.4
0.68
7,962.0
6.6
0.33
7,443.2
1.2
0.06
Time
1,467.7
6.6
1.78
1,146.9
2.3
0.79
1,019.2
1.0
0.40
Total Interest-Bearing Deposits
13,469.0
23.5
0.69
13,394.9
10.3
0.30
13,148.1
2.9
0.09
Short-Term Borrowings
234.9
2.3
3.82
4.9
0.1
3.17
18.5
-
0.13
Securities Sold Under Agreements to Repurchase
594.5
4.3
2.82
425.5
2.7
2.52
450.5
2.8
2.46
Other Debt
137.5
1.5
4.32
10.3
0.2
7.05
10.4
0.2
7.05
Total Interest-Bearing Liabilities
14,435.9
31.6
0.87
13,835.6
13.3
0.38
13,627.5
5.9
0.17
Net Interest Income
$
141.2
$
142.0
$
126.7
Interest Rate Spread
2.30
%
2.46
%
2.28
%
Net Interest Margin
2.60
%
2.60
%
2.34
%
Noninterest-Bearing Demand Deposits
6,872.3
7,468.8
7,074.4
Other Liabilities
552.9
463.5
373.8
Shareholders' Equity
1,286.3
1,367.9
1,590.6
Total Liabilities and Shareholders' Equity
$
23,147.4
$
23,135.8
$
22,666.3
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 $433,000,
$343,000, and $280,000 for the three months ended December 31,
2022, September 30, 2022, and December 31, 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 Hawai‘i Corporation and
Subsidiaries Average Balances and Interest Rates -
Taxable-Equivalent Basis 1 Table 7b Year Ended
Year Ended December 31, 2022 December 31, 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
$
3.0
$
-
1.05
%
$
2.7
$
-
0.36
%
Funds Sold
260.5
4.3
1.64
692.4
0.9
0.13
Investment Securities Available-for-Sale Taxable
3,644.2
70.5
1.93
4,266.9
64.2
1.50
Non-Taxable
4.0
0.1
2.92
10.1
0.4
4.21
Held-to-Maturity Taxable
4,750.0
80.9
1.70
3,988.1
61.0
1.53
Non-Taxable
35.6
0.7
2.10
50.7
1.2
2.41
Total Investment Securities
8,433.8
152.2
1.80
8,315.8
126.8
1.53
Loans Held for Sale
6.9
0.3
3.70
24.3
0.7
2.82
Loans and Leases 3 Commercial and Industrial
1,349.3
46.2
3.42
1,285.1
37.1
2.88
Paycheck Protection Program
44.0
2.7
6.07
453.9
25.7
5.67
Commercial Mortgage
3,420.1
121.9
3.56
2,940.0
86.7
2.95
Construction
232.6
10.6
4.56
271.6
9.5
3.50
Commercial Lease Financing
88.5
1.3
1.49
107.2
1.5
1.42
Residential Mortgage
4,484.2
147.4
3.29
4,232.4
140.1
3.31
Home Equity
2,072.2
62.1
3.00
1,637.1
49.6
3.03
Automobile
786.1
25.4
3.23
717.0
24.6
3.43
Other 4
419.5
23.0
5.49
379.4
23.9
6.30
Total Loans and Leases
12,896.5
440.6
3.42
12,023.7
398.7
3.32
Other
40.5
1.2
3.01
32.9
0.7
2.13
Total Earning Assets
21,641.2
598.6
2.77
21,091.8
527.8
2.50
Cash and Due from Banks
237.4
252.5
Other Assets
1,128.1
882.9
Total Assets
$
23,006.7
$
22,227.2
Interest-Bearing Liabilities Interest-Bearing
Deposits Demand
$
4,377.1
6.1
0.14
$
4,509.8
2.7
0.06
Savings
7,767.7
22.9
0.30
7,421.9
6.2
0.08
Time
1,135.5
10.7
0.94
1,331.8
6.3
0.47
Total Interest-Bearing Deposits
13,280.3
39.7
0.30
13,263.5
15.2
0.11
Short-Term Borrowings
77.1
2.5
3.23
5.2
-
0.13
Securities Sold Under Agreements to Repurchase
479.8
12.6
2.63
541.9
13.3
2.45
Other Debt
42.4
2.0
4.82
27.7
0.9
3.41
Total Interest-Bearing Liabilities
13,879.6
56.8
0.41
13,838.3
29.4
0.21
Net Interest Income
$
541.8
$
498.4
Interest Rate Spread
2.36
%
2.29
%
Net Interest Margin
2.50
%
2.36
%
Noninterest-Bearing Demand Deposits
7,270.4
6,507.6
Other Liabilities
454.2
385.7
Shareholders' Equity
1,402.5
1,495.6
Total Liabilities and Shareholders' Equity
$
23,006.7
$
22,227.2
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 $1,251,000 and
$1,116,000 for the year ended December 31, 2022 and December 31,
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 Hawai‘i Corporation and
Subsidiaries Analysis of Change in Net Interest Income -
Taxable-Equivalent Basis Table 8a Three Months Ended
December 31, 2022 Compared to September 30, 2022
(dollars in millions)
Volume 1 Rate 1 Total
Change in Interest Income: Funds Sold
$
(2.1
)
$
1.0
$
(1.1
)
Investment Securities Available-for-Sale Taxable
(5.1
)
6.5
1.4
Non-Taxable
0.1
-
0.1
Held-to-Maturity Taxable
3.2
0.2
3.4
Total Investment Securities
(1.8
)
6.7
4.9
Loans Held for Sale
(0.1
)
-
(0.1
)
Loans and Leases Commercial and Industrial
0.3
2.0
2.3
Paycheck Protection Program
(0.1
)
-
(0.1
)
Commercial Mortgage
0.9
6.4
7.3
Construction
0.2
0.3
0.5
Commercial Lease Financing
(0.1
)
-
(0.1
)
Residential Mortgage
0.8
0.7
1.5
Home Equity
0.5
1.0
1.5
Automobile
0.4
0.2
0.6
Other 2
-
0.2
0.2
Total Loans and Leases
2.9
10.8
13.7
Other
0.4
(0.3
)
0.1
Total Change in Interest Income
(0.7
)
18.2
17.5
Change in Interest Expense: Interest-Bearing Deposits Demand
-
2.1
2.1
Savings
(0.1
)
6.9
6.8
Time
0.8
3.5
4.3
Total Interest-Bearing Deposits
0.7
12.5
13.2
Short-Term Borrowings
2.2
-
2.2
Securities Sold Under Agreements to Repurchase
1.2
0.4
1.6
Other Debt
1.4
(0.1
)
1.3
Total Change in Interest Expense
5.5
12.8
18.3
Change in Net Interest Income
$
(6.2
)
$
5.4
$
(0.8
)
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 Hawai‘i Corporation and
Subsidiaries Analysis of Change in Net Interest Income -
Taxable-Equivalent Basis Table 8b Three Months Ended
December 31, 2022 Compared to December 31, 2021 (dollars
in millions)
Volume 1 Rate 1 Total Change in
Interest Income: Funds Sold
$
(0.1
)
$
1.2
$
1.1
Investment Securities Available-for-Sale Taxable
(8.1
)
10.7
2.6
Held-to-Maturity Taxable
2.6
2.8
5.4
Non-Taxable
(0.1
)
-
(0.1
)
Total Investment Securities
(5.6
)
13.5
7.9
Loans Held for Sale
(0.2
)
0.1
(0.1
)
Loans and Leases Commercial and Industrial
0.6
5.3
5.9
Paycheck Protection Program
(2.9
)
(2.7
)
(5.6
)
Commercial Mortgage
4.5
13.9
18.4
Construction
-
1.1
1.1
Commercial Lease Financing
(0.1
)
0.1
-
Residential Mortgage
2.7
2.3
5.0
Home Equity
3.5
1.6
5.1
Automobile
1.0
(0.1
)
0.9
Other 2
0.4
(0.1
)
0.3
Total Loans and Leases
9.7
21.4
31.1
Other
0.1
0.1
0.2
Total Change in Interest Income
3.9
36.3
40.2
Change in Interest Expense: Interest-Bearing Deposits Demand
(0.1
)
2.9
2.8
Savings
0.1
12.1
12.2
Time
0.6
5.0
5.6
Total Interest-Bearing Deposits
0.6
20.0
20.6
Short-Term Borrowings
0.7
1.6
2.3
Securities Sold Under Agreements to Repurchase
1.0
0.5
1.5
Other Debt
1.4
(0.1
)
1.3
Total Change in Interest Expense
3.7
22.0
25.7
Change in Net Interest Income
$
0.2
$
14.3
$
14.5
1
The change in interest income and expense not solely due to changes
in volume or rate has been allocated on a pro-rata basis to the
volume and rate columns.
2
Comprised of other consumer revolving credit, installment, and
consumer lease financing.
Bank of Hawai‘i Corporation and
Subsidiaries Analysis of Change in Net Interest Income -
Taxable-Equivalent Basis Table 8c Year Ended December
31, 2022 Compared to December 31, 2021 (dollars in
millions)
Volume 1 Rate 1 Total Change in
Interest Income: Funds Sold
$
(0.9
)
$
4.3
$
3.4
Investment Securities Available-for-Sale Taxable
(10.3
)
16.6
6.3
Non-Taxable
(0.2
)
(0.1
)
(0.3
)
Held-to-Maturity Taxable
12.5
7.4
19.9
Non-Taxable
(0.3
)
(0.2
)
(0.5
)
Total Investment Securities
1.7
23.7
25.4
Loans Held for Sale
(0.6
)
0.2
(0.4
)
Loans and Leases Commercial and Industrial
1.9
7.2
9.1
Paycheck Protection Program
(24.8
)
1.8
(23.0
)
Commercial Mortgage
15.5
19.7
35.2
Construction
(1.5
)
2.6
1.1
Commercial Lease Financing
(0.2
)
-
(0.2
)
Residential Mortgage
8.3
(1.0
)
7.3
Home Equity
13.1
(0.6
)
12.5
Automobile
2.3
(1.5
)
0.8
Other 2
2.3
(3.2
)
(0.9
)
Total Loans and Leases
16.9
25.0
41.9
Other
0.2
0.3
0.5
Total Change in Interest Income
17.3
53.5
70.8
Change in Interest Expense: Interest-Bearing Deposits Demand
(0.1
)
3.5
3.4
Savings
0.3
16.4
16.7
Time
(1.0
)
5.4
4.4
Total Interest-Bearing Deposits
(0.8
)
25.3
24.5
Short-Term Borrowings
0.9
1.6
2.5
Securities Sold Under Agreements to Repurchase
(1.6
)
0.9
(0.7
)
Other Debt
0.6
0.5
1.1
Total Change in Interest Expense
(0.9
)
28.3
27.4
Change in Net Interest Income
$
18.2
$
25.2
$
43.4
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 Hawai‘i Corporation and
Subsidiaries Salaries and Benefits Table 9
Three Months Ended Year Ended
December 31,
September 30,
December 31,
December 31,
(dollars in thousands)
2022
2022
2021
2022
2021
Salaries
$
37,395
$
37,792
$
35,758
$
146,840
$
135,416
Incentive Compensation
5,356
5,885
6,699
23,425
22,462
Share-Based Compensation
3,901
3,558
3,396
15,220
12,489
Commission Expense
830
1,005
2,094
4,708
8,901
Retirement and Other Benefits
4,065
4,448
4,661
17,242
20,213
Payroll Taxes
2,591
2,826
2,585
13,395
12,404
Medical, Dental, and Life Insurance
3,528
2,605
3,981
11,958
12,831
Separation Expense
(27
)
1,819
260
2,482
3,577
Total Salaries and Benefits
$
57,639
$
59,938
$
59,434
$
235,270
$
228,293
Bank of Hawai‘i Corporation and Subsidiaries Loan and
Lease Portfolio Balances Table 10
December 31,
September 30,
June 30,
March 31,
December 31,
(dollars in thousands)
2022
2022
2022
2022
2021
Commercial Commercial and Industrial
$
1,389,066
$
1,368,966
$
1,323,830
$
1,354,757
$
1,361,921
Paycheck Protection Program
19,579
22,955
31,964
57,809
126,779
Commercial Mortgage
3,725,542
3,591,943
3,464,126
3,257,689
3,152,130
Construction
260,825
236,498
246,177
248,363
220,254
Lease Financing
69,491
73,989
89,535
98,107
105,108
Total Commercial
5,464,503
5,294,351
5,155,632
5,016,725
4,966,192
Consumer Residential Mortgage
4,653,072
4,585,723
4,486,571
4,405,718
4,309,602
Home Equity
2,225,950
2,185,484
2,101,612
1,958,285
1,836,588
Automobile
870,396
820,640
775,065
742,934
736,565
Other 1
432,499
435,408
432,693
420,830
410,129
Total Consumer
8,181,917
8,027,255
7,795,941
7,527,767
7,292,884
Total Loans and Leases
$
13,646,420
$
13,321,606
$
12,951,573
$
12,544,492
$
12,259,076
Deposits
December 31,
September 30,
June 30,
March 31,
December 31,
(dollars in thousands)
2022
2022
2022
2022
2021
Consumer
$
10,304,335
$
10,507,946
$
10,554,121
$
10,654,192
$
10,438,844
Commercial
8,569,670
8,841,781
8,824,609
8,818,477
8,641,932
Public and Other
1,741,691
1,539,046
1,646,951
1,243,618
1,279,332
Total Deposits
$
20,615,696
$
20,888,773
$
21,025,681
$
20,716,287
$
20,360,108
1
Comprised of other revolving credit, installment, and lease
financing.
Bank of Hawai‘i Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90
Days or More Table 11
December 31,
September 30,
June 30,
March 31,
December 31,
(dollars in thousands)
2022
2022
2022
2022
2021
Non-Performing Assets Non-Accrual Loans and Leases
Commercial Commercial and Industrial
$
37
$
49
$
85
$
99
$
243
Commercial Mortgage
3,309
3,396
3,462
8,065
8,205
Total Commercial
3,346
3,445
3,547
8,164
8,448
Consumer Residential Mortgage
4,239
4,945
5,179
3,845
3,305
Home Equity
4,022
4,438
4,435
5,638
4,881
Total Consumer
8,261
9,383
9,614
9,483
8,186
Total Non-Accrual Loans and Leases
11,607
12,828
13,161
17,647
16,634
Foreclosed Real Estate
1,040
1,040
2,332
2,332
2,332
Total Non-Performing Assets
$
12,647
$
13,868
$
15,493
$
19,979
$
18,966
Accruing Loans and Leases Past Due 90 Days or More
Commercial Commercial and Industrial
$
-
$
-
$
-
$
22
$
-
Total Commercial
-
-
-
22
-
Consumer Residential Mortgage
2,429
3,279
2,638
4,113
3,159
Home Equity
1,673
1,061
2,029
2,722
3,456
Automobile
589
467
359
504
729
Other 1
683
513
508
649
426
Total Consumer
5,374
5,320
5,534
7,988
7,770
Total Accruing Loans and Leases Past Due 90 Days or More
$
5,374
$
5,320
$
5,534
$
8,010
$
7,770
Restructured Loans on Accrual Status and Not Past Due 90
Days or More
$
43,658
$
44,641
$
46,024
$
54,136
$
60,519
Total Loans and Leases
$
13,646,420
$
13,321,606
$
12,951,573
$
12,544,492
$
12,259,076
Ratio of Non-Accrual Loans and Leases to Total Loans and
Leases
0.09
%
0.10
%
0.10
%
0.14
%
0.14
%
Ratio of Non-Performing Assets to Total Loans and Leases and
Foreclosed Real Estate
0.09
%
0.10
%
0.12
%
0.16
%
0.15
%
Ratio of Non-Performing Assets to Total Assets
0.05
%
0.06
%
0.06
%
0.07
%
0.07
%
Ratio of Commercial Non-Performing Assets to Total
Commercial Loans and Leases and Commercial Foreclosed Real Estate
0.06
%
0.07
%
0.07
%
0.16
%
0.17
%
Ratio of Consumer Non-Performing Assets to Total Consumer
Loans and Leases and Consumer Foreclosed Real Estate
0.11
%
0.13
%
0.15
%
0.16
%
0.14
%
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
0.13
%
0.14
%
0.16
%
0.22
%
0.22
%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter
$
13,868
$
15,493
$
19,979
$
18,966
$
20,620
Additions
704
489
2,293
2,243
357
Reductions Payments
(1,605
)
(706
)
(5,511
)
(1,230
)
(972
)
Return to Accrual Status
(301
)
(116
)
(1,267
)
-
(1,038
)
Sales of Foreclosed Real Estate
-
(1,292
)
-
-
-
Charge-offs / Write-downs
(19
)
-
(1
)
-
(1
)
Total Reductions
(1,925
)
(2,114
)
(6,779
)
(1,230
)
(2,011
)
Balance at End of Quarter
$
12,647
$
13,868
$
15,493
$
19,979
$
18,966
1
Comprised of other revolving credit, installment, and lease
financing.
Bank of Hawai‘i Corporation and Subsidiaries
Reserve for Credit Losses Table 12 Three Months
Ended Year Ended
December 31,
September 30,
December 31,
December 31,
(dollars in thousands)
2022
2022
2021
2022
2021
Balance at Beginning of Period
$
152,927
$
154,098
$
174,708
$
164,297
$
221,303
Loans and Leases Charged-Off Commercial Commercial and
Industrial
(196
)
(147
)
(217
)
(925
)
(1,117
)
Consumer Residential Mortgage
-
-
-
(80
)
(316
)
Home Equity
(10
)
-
(5
)
(100
)
(417
)
Automobile
(1,171
)
(794
)
(1,045
)
(4,652
)
(4,939
)
Other 1
(1,846
)
(1,924
)
(2,007
)
(7,585
)
(10,530
)
Total Loans and Leases Charged-Off
(3,223
)
(2,865
)
(3,274
)
(13,342
)
(17,319
)
Recoveries on Loans and Leases Previously Charged-Off Commercial
Commercial and Industrial
87
45
132
552
506
Consumer Residential Mortgage
63
156
858
1,193
2,467
Home Equity
202
367
390
1,500
1,666
Automobile
412
441
476
2,276
3,510
Other 1
604
709
746
2,702
3,205
Total Recoveries on Loans and Leases Previously Charged-Off
1,368
1,718
2,602
8,223
11,354
Net Charged-Off - Loans and Leases
(1,855
)
(1,147
)
(672
)
(5,119
)
(5,965
)
Net Charged-Off - Accrued Interest Receivable
(25
)
-
(39
)
(131
)
(541
)
Provision for Credit Losses: Loans and Leases
(142
)
(929
)
(9,427
)
(8,263
)
(52,466
)
Accrued Interest Receivable
25
-
(214
)
(283
)
(1,745
)
Unfunded Commitments
317
905
(59
)
746
3,711
Total Provision for Credit Losses
200
(24
)
(9,700
)
(7,800
)
(50,500
)
Balance at End of Period
$
151,247
$
152,927
$
164,297
$
151,247
$
164,297
Components Allowance for Credit Losses - Loans and
Leases
$
144,439
$
146,436
$
157,821
$
144,439
$
157,821
Allowance for Credit Losses - Accrued Interest Receivable
-
-
414
-
414
Reserve for Unfunded Commitments
6,808
6,491
6,062
6,808
6,062
Total Reserve for Credit Losses
$
151,247
$
152,927
$
164,297
$
151,247
$
164,297
Average Loans and Leases Outstanding
$
13,452,791
$
13,126,717
$
12,086,705
$
12,896,510
$
12,023,669
Ratio of Net Loans and Leases Charged-Off to Average Loans
and Leases Outstanding (annualized)
0.05
%
0.03
%
0.02
%
0.04
%
0.05
%
Ratio of Allowance for Credit Losses to Loans and Leases
Outstanding 2
1.06
%
1.10
%
1.29
%
1.06
%
1.29
%
1
Comprised of other revolving credit, installment, and lease
financing.
2
The numerator comprises the Allowance for Credit Losses - Loans and
Leases.
Bank of Hawai‘i 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
December 31, 2022 Net Interest Income (Loss)
$
94,918
$
56,878
$
(11,058
)
$
140,738
Provision for Credit Losses
1,861
(6
)
(1,655
)
200
Net Interest Income (Loss) After Provision for Credit Losses
93,057
56,884
(9,403
)
140,538
Noninterest Income
31,526
8,288
1,358
41,172
Noninterest Expense
(82,383
)
(17,587
)
(2,733
)
(102,703
)
Income (Loss) Before Income Taxes
42,200
47,585
(10,778
)
79,007
Provision for Income Taxes
(10,846
)
(12,005
)
5,151
(17,700
)
Net Income (Loss)
$
31,354
$
35,580
$
(5,627
)
$
61,307
Total Assets as of December 31, 2022
$
8,545,896
$
5,522,916
$
9,538,065
$
23,606,877
Three Months Ended December 31, 2021 1 Net Interest
Income
$
71,146
$
48,140
$
7,102
$
126,388
Provision for Credit Losses
676
(4
)
(10,372
)
(9,700
)
Net Interest Income After Provision for Credit Losses
70,470
48,144
17,474
136,088
Noninterest Income
32,948
8,298
1,328
42,574
Noninterest Expense
(81,385
)
(17,127
)
(3,166
)
(101,678
)
Income Before Income Taxes
22,033
39,315
15,636
76,984
Provision for Income Taxes
(5,609
)
(9,436
)
1,898
(13,147
)
Net Income
$
16,424
$
29,879
$
17,534
$
63,837
Total Assets as of December 31, 2021 1
$
7,701,447
$
5,107,001
$
9,976,493
$
22,784,941
1
Certain prior period information has been reclassified to conform
to current presentation.
Bank of Hawai‘i Corporation and
Subsidiaries Business Segments Selected Financial
Information Table 13b Consumer Commercial
Treasury Consolidated (dollars in thousands)
Banking Banking and Other Total Year
Ended December 31, 2022 1 Net Interest Income
$
327,940
$
209,272
$
3,346
$
540,558
Provision for Credit Losses
5,324
(205
)
(12,919
)
(7,800
)
Net Interest Income After Provision for Credit Losses
322,616
209,477
16,265
548,358
Noninterest Income
126,336
25,937
5,268
157,541
Noninterest Expense
(330,561
)
(70,601
)
(14,103
)
(415,265
)
Income Before Income Taxes
118,391
164,813
7,430
290,634
Provision for Income Taxes
(29,974
)
(40,659
)
5,803
(64,830
)
Net Income
$
88,417
$
124,154
$
13,233
$
225,804
Total Assets as of December 31, 2022 1
$
8,545,896
$
5,522,916
$
9,538,065
$
23,606,877
Year Ended December 31, 2021 1 Net Interest Income
$
284,597
$
194,409
$
18,284
$
497,290
Provision for Credit Losses
5,764
201
(56,465
)
(50,500
)
Net Interest Income After Provision for Credit Losses
278,833
194,208
74,749
547,790
Noninterest Income
131,292
30,637
9,424
171,353
Noninterest Expense
(304,177
)
(64,470
)
(24,942
)
(393,589
)
Income Before Income Taxes
105,948
160,375
59,231
325,554
Provision for Income Taxes
(26,474
)
(39,070
)
(6,638
)
(72,182
)
Net Income
$
79,474
$
121,305
$
52,593
$
253,372
Total Assets as of December 31, 2021 1
$
7,701,447
$
5,107,001
$
9,976,493
$
22,784,941
1
Certain prior period information has been reclassified to conform
to current presentation.
Bank of Hawai‘i Corporation and
Subsidiaries Selected Quarterly Financial Data Table
14 Three Months Ended
December 31,
September 30,
June 30,
March 31,
December 31,
(dollars in thousands, except per share amounts)
2022
2022
2022
2022
2021
Quarterly Operating Results Interest Income Interest and
Fees on Loans and Leases
$
128,683
$
115,013
$
101,663
$
94,439
$
97,853
Income on Investment Securities Available-for-Sale
18,476
16,995
17,984
17,100
15,850
Held-to-Maturity
23,708
20,243
18,838
18,701
18,325
Deposits
13
10
5
4
1
Funds Sold
1,093
2,335
719
127
104
Other
340
322
353
202
176
Total Interest Income
172,313
154,918
139,562
130,573
132,309
Interest Expense Deposits
23,494
10,296
3,535
2,353
2,898
Securities Sold Under Agreements to Repurchase
4,289
2,745
2,794
2,772
2,834
Funds Purchased
318
40
57
2
6
Short-Term Borrowings
1,978
-
92
-
-
Other Debt
1,496
182
182
183
183
Total Interest Expense
31,575
13,263
6,660
5,310
5,921
Net Interest Income
140,738
141,655
132,902
125,263
126,388
Provision for Credit Losses
200
-
(2,500
)
(5,500
)
(9,700
)
Net Interest Income After Provision for Credit Losses
140,538
141,655
135,402
130,763
136,088
Noninterest Income Trust and Asset Management
10,652
10,418
11,457
11,276
11,693
Mortgage Banking
991
1,002
1,247
2,740
2,908
Service Charges on Deposit Accounts
7,513
7,526
7,309
7,272
6,861
Fees, Exchange, and Other Service Charges
13,906
13,863
14,193
12,952
14,439
Investment Securities Losses, Net
(1,124
)
(2,147
)
(1,295
)
(1,545
)
(1,258
)
Annuity and Insurance
1,087
1,034
870
791
876
Bank-Owned Life Insurance
2,475
2,486
2,658
2,349
1,907
Other
5,672
(3,522
)
5,719
7,716
5,148
Total Noninterest Income
41,172
30,660
42,158
43,551
42,574
Noninterest Expense Salaries and Benefits
57,639
59,938
57,769
59,924
59,434
Net Occupancy
9,499
10,186
9,930
9,826
9,028
Net Equipment
9,942
9,736
9,543
9,153
9,105
Data Processing
4,579
4,616
4,607
4,560
4,696
Professional Fees
3,958
3,799
3,542
3,258
3,427
FDIC Insurance
1,774
1,680
1,590
1,502
1,619
Other
15,312
15,794
15,958
15,651
14,369
Total Noninterest Expense
102,703
105,749
102,939
103,874
101,678
Income Before Provision for Income Taxes
79,007
66,566
74,621
70,440
76,984
Provision for Income Taxes
17,700
13,765
17,759
15,606
13,147
Net Income
$
61,307
$
52,801
$
56,862
$
54,834
$
63,837
Preferred Stock Dividends
1,969
1,969
1,969
1,969
1,969
Net Income Available to Common Shareholders
$
59,338
$
50,832
$
54,893
$
52,865
$
61,868
Basic Earnings Per Common Share
$
1.51
$
1.28
$
1.38
$
1.33
$
1.56
Diluted Earnings Per Common Share
$
1.50
$
1.28
$
1.38
$
1.32
$
1.55
Balance Sheet Totals Loans and Leases
$
13,646,420
$
13,321,606
$
12,951,573
$
12,544,492
$
12,259,076
Total Assets
23,606,877
23,134,040
23,232,699
23,000,317
22,784,941
Total Deposits
20,615,696
20,888,773
21,025,681
20,716,287
20,360,108
Total Shareholders' Equity
1,316,995
1,282,384
1,348,746
1,448,885
1,611,611
Performance Ratios Return on Average Assets
1.05
%
0.91
%
1.00
%
0.97
%
1.12
%
Return on Average Shareholders' Equity
18.91
15.31
16.40
14.18
15.92
Return on Average Common Equity
21.28
16.98
18.19
15.44
17.40
Efficiency Ratio 1
56.46
61.37
58.80
61.53
60.18
Net Interest Margin 2
2.60
2.60
2.47
2.34
2.34
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 Hawai‘i Corporation and Subsidiaries
Hawaii Economic Trends Table 15 Eleven Months
Ended Year Ended (dollars in millions; jobs in
thousands)
November 30, 2022 December 31, 2021
December 31, 2020 Hawaii Economic Trends State
General Fund Revenues 1
$
8,675.9
16.7
%
$
8,137.9
26.9
%
$
6,415.1
(12.3
)%
General Excise and Use Tax Revenue 1
3,916.3
18.9
3,604.3
18.6
3,038.8
(15.6
)
Jobs 2
652.3
642.6
594.4
November 31,
December 31,
2022
2021
2020
Unemployment, seasonally adjusted 3 Statewide
3.3
%
4.3
%
9.8
%
Honolulu County
3.4
4.0
8.8
Hawaii County
3.0
4.2
9.3
Maui County
3.5
5.4
13.9
Kauai County
3.2
6.0
13.6
December 31,
(1-year percentage change, except months of inventory)
2022
2021
2020
2019
Housing Trends (Single Family Oahu) 4 Median Home Price
11.6
%
19.3
%
5.2
%
(0.1
)%
Home Sales Volume (units)
(23.2
)%
17.9
%
2.3
%
3.9
%
Months of Inventory
2.1
0.8
1.4
2.5
Monthly Visitor Arrivals, Percentage Change
(in thousands)
Not Seasonally Adjusted from Previous
Year Tourism 5 November 30, 2022
725.5
18.2
%
October 31, 2022
726.1
31.8
September 30, 2022
691.8
37.1
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
614.0
234.1
October 31, 2021
550.8
618.2
September 30, 2021
504.6
2,641.0
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
)
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/20230123005176/en/
Media Inquiries Melissa Torres-Laing Email:
Melissa.Torres-Laing@boh.com Telephone: 808-694-8384 Mobile:
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