Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $3.86 for the full year of 2020 compared with diluted earnings per share of $5.56 in 2019. Net income for the year was $153.8 million compared with net income of $225.9 million in the previous year. The return on average assets for the full year of 2020 was 0.79 percent compared with 1.29 percent in 2019. The return on average equity for the full year of 2020 was 11.38 percent compared with 17.65 percent in 2019. The efficiency ratio for the full year of 2020 improved to 54.91 percent compared with 55.68 percent in 2019.
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“Bank of Hawaii finished 2020 with solid financial performance despite the many challenges we faced during the year due to the COVID-19 pandemic," said Peter Ho, Chairman, President, and CEO. “Our loan balances grew 8.6 percent in 2020 and our deposit balances reached another record high, growing 15.4 percent compared with the prior year. Total assets expanded to a new record high of $20.6 billion at the end of the year. Our overall asset quality remained stable and our capital and liquidity all remain strong. During the year our disciplined approach to expense management allowed us to continue making significant progress on our strategic initiatives which position us well for continued growth in the future.”
Diluted earnings per share were $1.06 for the fourth quarter of 2020, an increase from $0.95 in the third quarter of 2020 and down from $1.45 in the fourth quarter of 2019. Net income for the fourth quarter of 2020 was $42.3 million, up from $37.8 million in the previous quarter and down from $58.1 million in the same quarter in 2019. The return on average assets for the fourth quarter of 2020 was 0.83 percent compared with 0.76 percent in the third quarter of 2020 and 1.29 percent in the fourth quarter of 2019. The return on average equity for the fourth quarter of 2020 was 12.26 percent compared with 11.01 percent in the third quarter of 2020 and 17.84 percent in the fourth quarter of 2019. The efficiency ratio for the fourth quarter of 2020 was 59.88 percent compared with 54.22 percent in the previous quarter and 54.26 percent in the same quarter in 2019.
Financial Highlights
Net interest income, on a taxable-equivalent basis, was $497.6 million for the full year of 2020, a decrease of $2.3 million from net interest income of $499.9 million in 2019. Net interest income, on a taxable-equivalent basis, for the fourth quarter of 2020 was $119.8 million, a decrease of $4.7 million compared with net interest income of $124.5 million in the third quarter of 2020 and down $4.4 million from net interest income of $124.2 million in the fourth quarter of 2019. Net interest income in the fourth quarter of 2020 included a charge of $3.0 million related to an impairment in the residual value of a leveraged lease which had a negative impact of 6 basis points on the net interest margin. Analyses of changes in net interest income are included in Tables 8a, 8b and 8c.
The net interest margin for the full year of 2020 was 2.73 percent, a decrease of 30 basis points from the net interest margin of 3.03 percent in 2019. Adjusted for the lease impairment, the decrease in the net interest margin is largely due to lower rates and higher levels of liquidity from continued strong deposit growth. The net interest margin was 2.48 percent in the fourth quarter of 2020, a decrease of 19 basis points from the previous quarter and 47 basis points from the same quarter in 2019.
The provision for credit losses for the full year of 2020 was $117.8 million compared with a provision for credit losses of $16.0 million in 2019. Results for the fourth quarter of 2020 included a provision for credit losses of $15.2 million compared with $28.6 million in the previous quarter and $4.8 million in the same quarter in 2019.
Noninterest income for the full year of 2020 was $184.4 million, an increase of $1.1 million or 0.6 percent compared with noninterest income of $183.3 million in 2019. Noninterest income was $45.3 million in the fourth quarter of 2020 compared with noninterest income of $41.7 million in the third quarter of 2020 and $47.7 million in the fourth quarter of 2019. The increase in noninterest income during the fourth quarter of 2020 compared with the prior quarter is largely due to an increase in mortgage banking income.
Noninterest expense for the full year of 2020 was $373.8 million, a decrease of $5.4 million or 1.4 percent compared with noninterest expense of $379.2 million in 2019. Noninterest expense was $98.7 million in the fourth quarter of 2020 compared with noninterest expense of $89.9 million in the third quarter of 2020 and $93.1 million in the fourth quarter of 2019. Noninterest expense in the fourth quarter of 2020 included $6.1 million in charges related to the decision to permanently close twelve branches and reduce the current number of cash-only ATMs. Noninterest expense in the fourth quarter also included a charge of $0.8 million related to the true-up of amortization on an investment. Noninterest expense during the third quarter of 2020 included a gain of $1.9 million related to the sale of a branch building partially offset by $1.8 million in severance. There were no significant items in noninterest expense during the fourth quarter of 2019. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.
The effective tax rate for the full year of 2020 was 18.68 percent compared with 20.96 percent for the full year of 2019. The effective tax rate for the fourth quarter of 2020 was 16.87 percent compared with 20.09 percent in the previous quarter and 21.15 percent during the same quarter in 2019. The decrease in the effective tax rate for the fourth quarter of 2020 is primarily due to a return to provision adjustment of $1.6 million.
The Company’s business segments are defined as Consumer Banking, Commercial Banking, and Treasury & Other. Results for the business segments are determined based on the Company’s internal financial management reporting process and organizational structure. Selected financial information is included in Tables 13a and 13b.
Asset Quality
The Company’s overall asset quality continued to remain relatively stable during the fourth quarter of 2020. Total non-performing assets were $18.5 million at December 31, 2020, down from $18.6 million at September 30, 2020 and $20.1 million at December 31, 2019. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.15 percent at December 31, 2020 compared with 0.16 percent at September 30, 2020 and 0.18 percent at December 31, 2019.
Accruing loans and leases past due 90 days or more were $10.5 million at December 31, 2020 compared with $9.6 million at September 30, 2020 and $8.4 million at December 31, 2019. Restructured loans and leases not included in non-accrual loans or accruing loans past due 90 days or more were $68.1 million at December 31, 2020 compared with $58.7 million at September 30, 2020 and $63.1 million at December 31, 2019. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.
Net charge-offs for the full year of 2020 were $7.1 million or 0.06 percent of total average loans and leases compared with net charge-offs of $12.7 million or 0.12 percent of total average loans and leases in 2019. Net charge-offs during the fourth quarter of 2020 were a net recovery of $0.3 million and were comprised of charge-offs of $3.2 million fully offset by recoveries of $3.5 million. Net charge-offs during the third quarter of 2020 were a net recovery of $1.5 million as loan charge-offs of $2.3 million were fully offset by recoveries of $3.8 million. Net charge-offs during the fourth quarter of 2019 were $3.7 million or 0.13 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $6.2 million and recoveries of $2.6 million.
The allowance for credit losses was $216.3 million at December 31, 2020, an increase from $203.5 million at September 30, 2020 and $110.0 million at December 31, 2019. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.81 percent at December 31, 2020, up from 1.73 percent at September 30, 2020 and 1.00 percent at December 31, 2019. The reserve for unfunded commitments was $2.4 million at December 31, 2020, a slight increase from $2.3 million at the end of the prior quarter and down from $6.8 million at the end of the same quarter in 2019. Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.
Other Financial Highlights
Total assets increased to a new record of $20.6 billion at December 31, 2020 compared with total assets of $20.1 billion at September 30, 2020 and total assets of $18.1 billion at December 31, 2019. Average total assets were $19.4 billion for the full year of 2020, an increase of 10.5 percent from average total assets of $17.5 billion during 2019.
The investment securities portfolio was $7.1 billion at December 31, 2020, up from total securities of $6.4 billion at September 30, 2020 and $5.7 billion at December 31, 2019 due to growth in deposits that continued to outpace loan growth. The portfolio remains largely comprised of securities issued by U.S. government agencies and includes $3.3 billion in securities held to maturity and $3.8 billion in securities available for sale at December 31, 2020. The securities portfolio at September 30, 2020 included $3.2 billion in securities held to maturity and $3.2 billion in securities available for sale compared with $3.0 billion in securities held to maturity and $2.6 billion in securities available for sale at December 31, 2019.
Total loans and leases were $11.9 billion at December 31, 2020, an increase of 1.2 percent from total loans and leases of $11.8 billion at September 30, 2020 and up 8.6 percent from total loans and leases of $11.0 billion at December 31, 2019. Average total loans and leases were $11.6 billion during the full year of 2020, an increase of 8.5 percent from average total loans and leases of $10.7 billion during 2019.
The commercial loan portfolio was $5.1 billion at the end of December 31, 2020, an increase of $83.8 million or 1.7 percent from $5.0 billion at the end of the third quarter of 2020 and up $886.9 million or 21.0 percent from $4.2 billion at the end of the fourth quarter of 2019. Consumer loans were $6.8 billion at December 31, 2020, an increase of $62.6 million or 0.9 percent from $6.8 billion at the end of the third quarter of 2020 and up $62.3 million or 0.9 percent from $6.8 billion at the end of the fourth quarter of 2019. Loan and lease portfolio balances are summarized in Table 10.
Total deposits were $18.2 billion at December 31, 2020, an increase of 2.7 percent from total deposits of $17.7 billion at September 30, 2020 and up 15.4 percent from total deposits of $15.8 billion at December 31, 2019. Average total deposits were $16.9 billion during the full year of 2020, an increase of 11.0 percent from average total deposits of $15.2 billion during 2019.
Consumer deposits were $9.3 billion at December 31, 2020, an increase of $443.9 million or 5.0 percent from $8.9 billion at the end of the third quarter of 2020 and an increase of $1.2 billion or 15.1 percent from $8.1 billion at the end of the fourth quarter of 2019. Commercial deposits were $7.3 billion at December 31, 2020, an increase of $143.3 million or 2.0 percent from $7.2 billion at the end of the third quarter of 2020 and an increase of $978.6 million or 15.5 percent from $6.3 billion at the end of the fourth quarter of 2019. Other deposits, including public funds, were $1.6 billion at December 31, 2020, a decrease of $114.5 million or 6.8 percent from $1.7 billion at the end of the third quarter of 2020 and an increase of $219.3 million or 16.3 percent from $1.3 billion at the end of the fourth quarter of 2019. Deposit balances are summarized in Tables 7a, 7b, and 10.
Total shareholders’ equity was $1.4 billion at December 31, 2020, an increase of $12.8 million from September 30, 2020, and up $87.7 million from December 31, 2019. There were no shares repurchased during the fourth quarter of 2020. The Tier 1 Capital Ratio was 12.06 percent at December 31, 2020 compared with 12.09 percent at September 30, 2020 and 12.18 percent at December 31, 2019. The Tier 1 Leverage Ratio at December 31, 2020 was 6.71 percent compared with 6.81 percent at September 30, 2020 and 7.25 percent at December 31, 2019. The decrease in the Tier 1 Leverage ratio is due to balance sheet growth related to the significant increase in customer deposits.
The Company’s Board of Directors declared a quarterly cash dividend of $0.67 per share on the Company’s outstanding shares. The dividend will be payable on March 12, 2021 to shareholders of record at the close of business on February 26, 2021.
Conference Call Information
The Company will review its 2020 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 Hawaii Corporation's website, www.boh.com. The webcast link is https://edge.media-server.com/mmc/p/ukntid8g. The toll-free number for the teleconference is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code “Bank of Hawaii” to access the call. A replay of the conference call will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, January 25, 2021. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the conference ID 4199179 when prompted. In addition, the replay will be available on the Company's website, www.boh.com.
Forward-Looking Statements
This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2019, and its Form 10-Qs for the fiscal quarters ended March 31, 2020, June 30, 2020 and October 31, 2020, which were filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.
Bank of Hawaii Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawaii and the West Pacific. The Company's principal subsidiary, Bank of Hawaii, was founded in 1897. For more information about Bank of Hawaii Corporation, see the Company’s web site, www.boh.com.
| Bank of Hawaii Corporation and Subsidiaries | |||||||||||||||
| Financial Highlights | Table 1 | ||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
December 31, | September 30, | December 31, | December 31, | ||||||||||||
| (dollars in thousands, except per share amounts) | 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||
| For the Period: | |||||||||||||||
| Operating Results | |||||||||||||||
| Net Interest Income | $ | 119,499 | $ | 124,166 | $ | 123,885 | $ | 496,322 | $ | 497,715 | |||||
| Provision for Credit Losses | 15,200 | 28,600 | 4,750 | 117,800 | 16,000 | ||||||||||
| Total Noninterest Income | 45,258 | 41,734 | 47,702 | 184,409 | 183,338 | ||||||||||
| Total Noninterest Expense | 98,654 | 89,949 | 93,096 | 373,807 | 379,227 | ||||||||||
| Net Income | 42,314 | 37,840 | 58,143 | 153,804 | 225,913 | ||||||||||
| Basic Earnings Per Share | 1.06 | 0.95 | 1.46 | 3.87 | 5.59 | ||||||||||
| Diluted Earnings Per Share | 1.06 | 0.95 | 1.45 | 3.86 | 5.56 | ||||||||||
| Dividends Declared Per Share | 0.67 | 0.67 | 0.67 | 2.68 | 2.59 | ||||||||||
| Performance Ratios | |||||||||||||||
| Return on Average Assets | 0.83 | % | 0.76 | % | 1.29 | % | 0.79 | % | 1.29 | % | |||||
| Return on Average Shareholders' Equity | 12.26 | 11.01 | 17.84 | 11.38 | 17.65 | ||||||||||
| Efficiency Ratio 1 | 59.88 | 54.22 | 54.26 | 54.91 | 55.68 | ||||||||||
| Net Interest Margin 2 | 2.48 | 2.67 | 2.95 | 2.73 | 3.03 | ||||||||||
| Dividend Payout Ratio 3 | 63.21 | 70.53 | 45.89 | 69.25 | 46.33 | ||||||||||
| Average Shareholders' Equity to Average Assets | 6.74 | 6.93 | 7.26 | 6.97 | 7.30 | ||||||||||
| Average Balances | |||||||||||||||
| Average Loans and Leases | $ | 11,835,929 | $ | 11,739,785 | $ | 10,878,672 | $ | 11,592,093 | $ | 10,688,424 | |||||
| Average Assets | 20,382,633 | 19,741,139 | 17,821,004 | 19,387,693 | 17,537,570 | ||||||||||
| Average Deposits | 17,819,116 | 17,270,206 | 15,441,097 | 16,900,186 | 15,228,066 | ||||||||||
| Average Shareholders' Equity | 1,372,971 | 1,367,756 | 1,292,930 | 1,351,583 | 1,280,082 | ||||||||||
| Per Share of Common Stock | |||||||||||||||
| Book Value | $ | 34.26 | $ | 33.99 | $ | 32.14 | $ | 34.26 | $ | 32.14 | |||||
| Tangible Book Value | 33.47 | 33.21 | 31.35 | 33.47 | 31.35 | ||||||||||
| Market Value | |||||||||||||||
| Closing | 76.62 | 50.52 | 95.16 | 76.62 | 95.16 | ||||||||||
| High | 80.38 | 61.94 | 95.68 | 95.53 | 95.68 | ||||||||||
| Low | 49.25 | 48.77 | 81.29 | 46.70 | 66.54 | ||||||||||
| December 31, | September 30, | December 31, | |||||||||||||
2020 | 2020 | 2019 | |||||||||||||
| As of Period End: | |||||||||||||||
| Balance Sheet Totals | |||||||||||||||
| Loans and Leases | $ | 11,940,020 | $ | 11,793,608 | $ | 10,990,892 | |||||||||
| Total Assets | 20,603,651 | 20,109,489 | 18,095,496 | ||||||||||||
| Total Deposits | 18,211,621 | 17,738,883 | 15,784,482 | ||||||||||||
| Other Debt | 60,481 | 60,502 | 85,565 | ||||||||||||
| Total Shareholders' Equity | 1,374,507 | 1,361,739 | 1,286,832 | ||||||||||||
| Asset Quality | |||||||||||||||
| Non-Performing Assets | $ | 18,481 | $ | 18,626 | $ | 20,117 | |||||||||
| Allowance for Credit Losses | 216,252 | 203,496 | 110,027 | ||||||||||||
| Allowance to Loans and Leases Outstanding | 1.81 | % | 1.73 | % | 1.00 | % | |||||||||
| Capital Ratios 4 | |||||||||||||||
| Common Equity Tier 1 Capital Ratio | 12.06 | % | 12.09 | % | 12.18 | % | |||||||||
| Tier 1 Capital Ratio | 12.06 | 12.09 | 12.18 | ||||||||||||
| Total Capital Ratio | 13.31 | 13.35 | 13.28 | ||||||||||||
| Tier 1 Leverage Ratio | 6.71 | 6.81 | 7.25 | ||||||||||||
| Total Shareholders' Equity to Total Assets | 6.67 | 6.77 | 7.11 | ||||||||||||
| Tangible Common Equity to Tangible Assets 5 | 6.53 | 6.63 | 6.95 | ||||||||||||
| Tangible Common Equity to Risk-Weighted Assets 5 | 11.89 | 12.02 | 11.85 | ||||||||||||
| Non-Financial Data | |||||||||||||||
| Full-Time Equivalent Employees | 2,022 | 2,038 | 2,124 | ||||||||||||
| Branches | 65 | 67 | 68 | ||||||||||||
| ATMs | 357 | 358 | 387 | ||||||||||||
| 1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income). | ||||||||||||
| 2 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets. | ||||||||||||
| 3 Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share. | ||||||||||||
| 4 Regulatory capital ratios as of December 31, 2020 are preliminary. | ||||||||||||
| 5 Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 “Reconciliation of Non-GAAP Financial Measures." |
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||
| Reconciliation of Non-GAAP Financial Measures | Table 2 | |||||||||
December 31, | September 30, | December 31, | ||||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | |||||||
| Total Shareholders' Equity | $ | 1,374,507 | $ | 1,361,739 | $ | 1,286,832 | ||||
| Less: Goodwill | 31,517 | 31,517 | 31,517 | |||||||
| Tangible Common Equity | $ | 1,342,990 | $ | 1,330,222 | $ | 1,255,315 | ||||
| Total Assets | $ | 20,603,651 | $ | 20,109,489 | $ | 18,095,496 | ||||
| Less: Goodwill | 31,517 | 31,517 | 31,517 | |||||||
| Tangible Assets | $ | 20,572,134 | $ | 20,077,972 | $ | 18,063,979 | ||||
| Risk-Weighted Assets, determined in accordance | ||||||||||
| with prescribed regulatory requirements | $ | 11,295,077 | $ | 11,068,888 | $ | 10,589,061 | ||||
| Total Shareholders' Equity to Total Assets | 6.67 | % | 6.77 | % | 7.11 | % | ||||
| Tangible Common Equity to Tangible Assets (Non-GAAP) | 6.53 | % | 6.63 | % | 6.95 | % | ||||
| Tier 1 Capital Ratio | 12.06 | % | 12.09 | % | 12.18 | % | ||||
| Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) | 11.89 | % | 12.02 | % | 11.85 | % | ||||
| Note: Risk-Weighted Assets and Regulatory capital ratios as of December 31, 2020 are preliminary. | ||||||||||
| Bank of Hawaii 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) | 2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||
| Interest Income | ||||||||||||||||
| Interest and Fees on Loans and Leases | $ | 98,471 | $ | 103,189 | $ | 109,223 | $ | 417,498 | $ | 439,012 | ||||||
| Income on Investment Securities | ||||||||||||||||
| Available-for-Sale | 15,449 | 14,558 | 16,158 | 61,294 | 62,174 | |||||||||||
| Held-to-Maturity | 14,113 | 15,967 | 18,750 | 66,055 | 81,616 | |||||||||||
| Deposits | 1 | 3 | 8 | 14 | 41 | |||||||||||
| Funds Sold | 115 | 149 | 723 | 902 | 3,553 | |||||||||||
| Other | 167 | 151 | 239 | 661 | 1,001 | |||||||||||
| Total Interest Income | 128,316 | 134,017 | 145,101 | 546,424 | 587,397 | |||||||||||
| Interest Expense | ||||||||||||||||
| Deposits | 4,861 | 5,891 | 16,407 | 32,966 | 68,374 | |||||||||||
| Securities Sold Under Agreements to Repurchase | 3,614 | 3,622 | 4,071 | 15,281 | 17,522 | |||||||||||
| Funds Purchased | 5 | - | 25 | 95 | 840 | |||||||||||
| Short-Term Borrowings | - | 1 | - | 62 | 38 | |||||||||||
| Other Debt | 337 | 337 | 713 | 1,698 | 2,908 | |||||||||||
| Total Interest Expense | 8,817 | 9,851 | 21,216 | 50,102 | 89,682 | |||||||||||
| Net Interest Income | 119,499 | 124,166 | 123,885 | 496,322 | 497,715 | |||||||||||
| Provision for Credit Losses | 15,200 | 28,600 | 4,750 | 117,800 | 16,000 | |||||||||||
| Net Interest Income After Provision for Credit Losses | 104,299 | 95,566 | 119,135 | 378,522 | 481,715 | |||||||||||
| Noninterest Income | ||||||||||||||||
| Trust and Asset Management | 11,239 | 10,752 | 11,157 | 43,456 | 44,233 | |||||||||||
| Mortgage Banking | 6,851 | 4,047 | 3,199 | 17,871 | 13,686 | |||||||||||
| Service Charges on Deposit Accounts | 6,335 | 6,027 | 7,835 | 24,910 | 30,074 | |||||||||||
| Fees, Exchange, and Other Service Charges | 12,143 | 12,296 | 14,533 | 47,056 | 57,893 | |||||||||||
| Investment Securities Gains (Losses), Net | (1,193 | ) | (1,121 | ) | (906 | ) | 9,932 | (3,986 | ) | |||||||
| Annuity and Insurance | 670 | 881 | 1,272 | 3,362 | 6,934 | |||||||||||
| Bank-Owned Life Insurance | 2,353 | 1,806 | 1,879 | 7,388 | 7,015 | |||||||||||
| Other | 6,860 | 7,046 | 8,733 | 30,434 | 27,489 | |||||||||||
| Total Noninterest Income | 45,258 | 41,734 | 47,702 | 184,409 | 183,338 | |||||||||||
| Noninterest Expense | ||||||||||||||||
| Salaries and Benefits | 50,200 | 51,951 | 51,664 | 207,329 | 216,106 | |||||||||||
| Net Occupancy | 14,536 | 7,281 | 8,824 | 39,533 | 33,800 | |||||||||||
| Net Equipment | 9,574 | 9,223 | 7,930 | 35,448 | 29,295 | |||||||||||
| Data Processing | 4,604 | 4,691 | 4,828 | 18,499 | 18,757 | |||||||||||
| Professional Fees | 3,174 | 2,743 | 3,257 | 12,186 | 10,071 | |||||||||||
| FDIC Insurance | 1,484 | 1,282 | 1,376 | 5,780 | 5,192 | |||||||||||
| Other | 15,082 | 12,778 | 15,217 | 55,032 | 66,006 | |||||||||||
| Total Noninterest Expense | 98,654 | 89,949 | 93,096 | 373,807 | 379,227 | |||||||||||
| Income Before Provision for Income Taxes | 50,903 | 47,351 | 73,741 | 189,124 | 285,826 | |||||||||||
| Provision for Income Taxes | 8,589 | 9,511 | 15,598 | 35,320 | 59,913 | |||||||||||
| Net Income | $ | 42,314 | $ | 37,840 | $ | 58,143 | $ | 153,804 | $ | 225,913 | ||||||
| Basic Earnings Per Share | $ | 1.06 | $ | 0.95 | $ | 1.46 | $ | 3.87 | $ | 5.59 | ||||||
| Diluted Earnings Per Share | $ | 1.06 | $ | 0.95 | $ | 1.45 | $ | 3.86 | $ | 5.56 | ||||||
| Dividends Declared Per Share | $ | 0.67 | $ | 0.67 | $ | 0.67 | $ | 2.68 | $ | 2.59 | ||||||
| Basic Weighted Average Shares | 39,773,851 | 39,745,120 | 39,880,619 | 39,726,210 | 40,384,328 | |||||||||||
| Diluted Weighted Average Shares | 39,963,736 | 39,869,135 | 40,179,016 | 39,892,107 | 40,649,570 | |||||||||||
| Bank of Hawaii Corporation and Subsidiaries | |||||||||||||||||
| Consolidated Statements of Comprehensive Income | Table 4 | ||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||
December 31, | September 30, | December 31, | December 31, | ||||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Net Income | $ | 42,314 | $ | 37,840 | $ | 58,143 | $ | 153,804 | $ | 225,913 | |||||||
| Other Comprehensive Income (Loss), Net of Tax: | |||||||||||||||||
| Net Unrealized Gains (Losses) on Investment Securities | (961 | ) | (4,900 | ) | (5,856 | ) | 43,428 | 22,677 | |||||||||
| Defined Benefit Plans | (5,616 | ) | 374 | (3,482 | ) | (4,494 | ) | (2,746 | ) | ||||||||
| Other Comprehensive Income (Loss) | (6,577 | ) | (4,526 | ) | (9,338 | ) | 38,934 | 19,931 | |||||||||
| Comprehensive Income | $ | 35,737 | $ | 33,314 | $ | 48,805 | $ | 192,738 | $ | 245,844 | |||||||
| Bank of Hawaii Corporation and Subsidiaries | |||||||||
| Consolidated Statements of Condition | Table 5 | ||||||||
| December 31, | September 30, | December 31, | |||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | ||||||
| Assets | |||||||||
| Interest-Bearing Deposits in Other Banks | $ | 1,646 | $ | 4,233 | $ | 4,979 | |||
| Funds Sold | 333,022 | 736,524 | 254,574 | ||||||
| Investment Securities | |||||||||
| Available-for-Sale | 3,791,689 | 3,190,313 | 2,619,003 | ||||||
| Held-to-Maturity (Fair Value of $3,348,693; $3,288,668; and $3,062,882) | 3,262,727 | 3,198,830 | 3,042,294 | ||||||
| Loans Held for Sale | 82,565 | - | 39,062 | ||||||
| Loans and Leases | 11,940,020 | 11,793,608 | 10,990,892 | ||||||
| Allowance for Credit Losses | (216,252 | ) | (203,496 | ) | (110,027 | ) | |||
| Net Loans and Leases | 11,723,768 | 11,590,112 | 10,880,865 | ||||||
| Total Earning Assets | 19,195,417 | 18,720,012 | 16,840,777 | ||||||
| Cash and Due from Banks | 279,420 | 260,167 | 299,105 | ||||||
| Premises and Equipment, Net | 199,695 | 199,021 | 188,388 | ||||||
| Operating Lease Right-of-Use Assets | 99,542 | 96,200 | 100,838 | ||||||
| Accrued Interest Receivable | 49,303 | 57,370 | 46,476 | ||||||
| Foreclosed Real Estate | 2,332 | 2,332 | 2,737 | ||||||
| Mortgage Servicing Rights | 19,652 | 21,887 | 25,022 | ||||||
| Goodwill | 31,517 | 31,517 | 31,517 | ||||||
| Bank-Owned Life Insurance | 291,480 | 291,231 | 287,962 | ||||||
| Other Assets | 435,293 | 429,752 | 272,674 | ||||||
| Total Assets | $ | 20,603,651 | $ | 20,109,489 | $ | 18,095,496 | |||
| Liabilities | |||||||||
| Deposits | |||||||||
| Noninterest-Bearing Demand | $ | 5,749,612 | $ | 5,428,567 | $ | 4,489,525 | |||
| Interest-Bearing Demand | 4,040,733 | 3,824,448 | 3,127,205 | ||||||
| Savings | 6,759,213 | 6,763,891 | 6,365,321 | ||||||
| Time | 1,662,063 | 1,721,977 | 1,802,431 | ||||||
| Total Deposits | 18,211,621 | 17,738,883 | 15,784,482 | ||||||
| Securities Sold Under Agreements to Repurchase | 600,590 | 602,106 | 604,306 | ||||||
| Other Debt | 60,481 | 60,502 | 85,565 | ||||||
| Operating Lease Liabilities | 107,412 | 103,869 | 108,210 | ||||||
| Retirement Benefits Payable | 51,197 | 43,505 | 44,504 | ||||||
| Accrued Interest Payable | 5,117 | 6,613 | 8,040 | ||||||
| Taxes Payable and Deferred Taxes | 2,463 | 12,124 | 16,085 | ||||||
| Other Liabilities | 190,263 | 180,148 | 157,472 | ||||||
| Total Liabilities | 19,229,144 | 18,747,750 | 16,808,664 | ||||||
| Shareholders' Equity | |||||||||
| Common Stock ($.01 par value; authorized 500,000,000 shares; | |||||||||
| issued / outstanding: December 31, 2020 - 58,285,624 / 40,119,312; | |||||||||
| September 30, 2020 - 58,248,690 / 40,060,675; | |||||||||
| and December 31, 2019 - 58,166,910 / 40,039,695) | 580 | 580 | 579 | ||||||
| Capital Surplus | 591,360 | 588,632 | 582,566 | ||||||
| Accumulated Other Comprehensive Gain (Loss) | 7,822 | 14,399 | (31,112 | ) | |||||
| Retained Earnings | 1,811,979 | 1,797,763 | 1,761,415 | ||||||
| Treasury Stock, at Cost (Shares: December 31, 2020 - 18,166,312; | |||||||||
| September 30, 2020 - 18,188,015; and December 31, 2019 - 18,127,215) | (1,037,234 | ) | (1,039,635 | ) | (1,026,616 | ) | |||
| Total Shareholders' Equity | 1,374,507 | 1,361,739 | 1,286,832 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 20,603,651 | $ | 20,109,489 | $ | 18,095,496 | |||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||||||||
| Consolidated Statements of Shareholders' Equity | Table 6 | |||||||||||||||||
| Accum. | ||||||||||||||||||
| Other | ||||||||||||||||||
| Compre- | ||||||||||||||||||
| hensive | ||||||||||||||||||
| Common Shares | Common | Capital | Income | Retained | Treasury | |||||||||||||
| (dollars in thousands) | Outstanding | Stock | Surplus | (Loss) | Earnings | Stock | Total | |||||||||||
| Balance as of December 31, 2018 | 41,499,898 | $ | 577 | $ | 571,704 | $ | (51,043 | ) | $ | 1,641,314 | $ | (894,352 | ) | $ | 1,268,200 | |||
| Net Income | - | - | - | - | 225,913 | - | 225,913 | |||||||||||
| Other Comprehensive Income | - | - | - | 19,931 | - | - | 19,931 | |||||||||||
| Share-Based Compensation | - | - | 8,337 | - | - | - | 8,337 | |||||||||||
| Common Stock Issued under Purchase and Equity | ||||||||||||||||||
| Compensation Plans and Related Tax Benefits | 212,924 | 2 | 2,525 | - | (334 | ) | 5,385 | 7,578 | ||||||||||
| Common Stock Repurchased | (1,673,127 | ) | - | - | - | - | (137,649 | ) | (137,649 | ) | ||||||||
| Cash Dividends Declared ($2.59 per share) | - | - | - | - | (105,478 | ) | - | (105,478 | ) | |||||||||
| Balance as of December 31, 2019 | 40,039,695 | $ | 579 | $ | 582,566 | $ | (31,112 | ) | $ | 1,761,415 | $ | (1,026,616 | ) | $ | 1,286,832 | |||
| Net Income | - | - | - | - | 153,804 | - | 153,804 | |||||||||||
| Other Comprehensive Income | - | - | - | 38,934 | - | - | 38,934 | |||||||||||
| Cumulative Change in Accounting Principle | - | - | - | - | 3,632 | - | 3,632 | |||||||||||
| Share-Based Compensation | - | - | 7,577 | - | - | - | 7,577 | |||||||||||
| Common Stock Issued under Purchase and Equity | ||||||||||||||||||
| Compensation Plans and Related Tax Benefits | 283,482 | 1 | 1,217 | - | 562 | 7,388 | 9,168 | |||||||||||
| Common Stock Repurchased | (203,865 | ) | - | - | - | - | (18,006 | ) | (18,006 | ) | ||||||||
| Cash Dividends Declared ($2.68 per share) | - | - | - | - | (107,434 | ) | - | (107,434 | ) | |||||||||
| Balance as of December 31, 2020 | 40,119,312 | $ | 580 | $ | 591,360 | $ | 7,822 | $ | 1,811,979 | $ | (1,037,234 | ) | $ | 1,374,507 | ||||
| Bank of Hawaii Corporation and Subsidiaries | |||||||||||||||||||
| Average Balances and Interest Rates - Taxable-Equivalent Basis | Table 7a | ||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||
December 31, 2020 | September 30, 2020 | December 31, 2019 | |||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||
| (dollars in millions) | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||
| Earning Assets | |||||||||||||||||||
| Interest-Bearing Deposits in Other Banks | $ | 2.2 | $ | - | 0.16 | % | $ | 2.6 | $ | - | 0.45 | % | $ | 3.4 | $ | - | 0.90 | % | |
| Funds Sold | 451.6 | 0.1 | 0.10 | 584.2 | 0.1 | 0.10 | 177.7 | 0.7 | 1.59 | ||||||||||
| Investment Securities | |||||||||||||||||||
| Available-for-Sale | |||||||||||||||||||
| Taxable | 3,605.8 | 15.3 | 1.69 | 2,918.6 | 14.3 | 1.96 | 2,578.3 | 15.9 | 2.46 | ||||||||||
| Non-Taxable | 20.2 | 0.2 | 4.33 | 25.8 | 0.3 | 4.22 | 33.4 | 0.4 | 4.35 | ||||||||||
| Held-to-Maturity | |||||||||||||||||||
| Taxable | 3,246.7 | 13.9 | 1.71 | 3,257.7 | 15.7 | 1.93 | 2,994.7 | 18.4 | 2.46 | ||||||||||
| Non-Taxable | 47.1 | 0.3 | 2.66 | 54.1 | 0.4 | 2.66 | 61.7 | 0.4 | 2.70 | ||||||||||
| Total Investment Securities | 6,919.8 | 29.7 | 1.71 | 6,256.2 | 30.7 | 1.96 | 5,668.1 | 35.1 | 2.47 | ||||||||||
| Loans Held for Sale | 15.1 | 0.1 | 2.98 | 15.9 | 0.1 | 3.24 | 31.0 | 0.3 | 3.67 | ||||||||||
| Loans and Leases 1 | |||||||||||||||||||
| Commercial and Industrial | 1,897.4 | 14.0 | 2.95 | 1,917.0 | 14.1 | 2.93 | 1,356.1 | 13.3 | 3.90 | ||||||||||
| Commercial Mortgage | 2,768.0 | 21.7 | 3.12 | 2,722.3 | 21.7 | 3.18 | 2,479.7 | 25.5 | 4.08 | ||||||||||
| Construction | 257.4 | 2.3 | 3.62 | 234.0 | 2.1 | 3.60 | 179.1 | 2.1 | 4.73 | ||||||||||
| Commercial Lease Financing | 112.2 | (2.5) | (9.07) | 110.7 | 0.5 | 1.82 | 135.4 | 0.8 | 2.38 | ||||||||||
| Residential Mortgage | 4,089.7 | 36.4 | 3.57 | 3,988.7 | 36.7 | 3.68 | 3,850.4 | 36.7 | 3.81 | ||||||||||
| Home Equity | 1,600.9 | 13.2 | 3.28 | 1,625.2 | 14.1 | 3.45 | 1,683.4 | 15.7 | 3.70 | ||||||||||
| Automobile | 706.1 | 6.4 | 3.59 | 708.3 | 6.4 | 3.59 | 715.2 | 6.5 | 3.59 | ||||||||||
| Other 2 | 404.2 | 7.0 | 6.85 | 433.6 | 7.6 | 6.96 | 479.4 | 8.5 | 7.02 | ||||||||||
| Total Loans and Leases | 11,835.9 | 98.5 | 3.32 | 11,739.8 | 103.2 | 3.50 | 10,878.7 | 109.1 | 3.99 | ||||||||||
| Other | 33.3 | 0.2 | 2.01 | 33.3 | 0.2 | 1.81 | 34.9 | 0.2 | 2.74 | ||||||||||
| Total Earning Assets 3 | 19,257.9 | 128.6 | 2.66 | 18,632.0 | 134.3 | 2.88 | 16,793.8 | 145.4 | 3.45 | ||||||||||
| Cash and Due from Banks | 240.4 | 234.3 | 222.2 | ||||||||||||||||
| Other Assets | 884.3 | 874.8 | 805.0 | ||||||||||||||||
| Total Assets | $ | 20,382.6 | $ | 19,741.1 | $ | 17,821.0 | |||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||||
| Interest-Bearing Deposits | |||||||||||||||||||
| Demand | $ | 3,899.5 | 0.6 | 0.06 | $ | 3,465.5 | 0.4 | 0.04 | $ | 2,990.3 | 1.0 | 0.14 | |||||||
| Savings | 6,728.8 | 1.4 | 0.08 | 6,886.0 | 1.7 | 0.10 | 6,245.0 | 8.0 | 0.51 | ||||||||||
| Time | 1,696.0 | 2.9 | 0.68 | 1,568.3 | 3.8 | 0.97 | 1,842.3 | 7.4 | 1.59 | ||||||||||
| Total Interest-Bearing Deposits | 12,324.3 | 4.9 | 0.16 | 11,919.8 | 5.9 | 0.20 | 11,077.6 | 16.4 | 0.59 | ||||||||||
| Short-Term Borrowings | 19.2 | - | 0.10 | - | - | - | 5.8 | - | 1.66 | ||||||||||
| Securities Sold Under Agreements to Repurchase | 600.9 | 3.6 | 2.35 | 602.9 | 3.6 | 2.35 | 604.3 | 4.1 | 2.64 | ||||||||||
| Other Debt | 60.5 | 0.3 | 2.22 | 60.5 | 0.3 | 2.22 | 106.2 | 0.7 | 2.67 | ||||||||||
| Total Interest-Bearing Liabilities | 13,004.9 | 8.8 | 0.27 | 12,583.2 | 9.8 | 0.31 | 11,793.9 | 21.2 | 0.71 | ||||||||||
| Net Interest Income | $ | 119.8 | $ | 124.5 | $ | 124.2 | |||||||||||||
| Interest Rate Spread | 2.39 | % | 2.57 | % | 2.74 | % | |||||||||||||
| Net Interest Margin | 2.48 | % | 2.67 | % | 2.95 | % | |||||||||||||
| Noninterest-Bearing Demand Deposits | 5,494.8 | 5,350.4 | 4,363.5 | ||||||||||||||||
| Other Liabilities | 509.9 | 439.7 | 370.7 | ||||||||||||||||
| Shareholders' Equity | 1,373.0 | 1,367.8 | 1,292.9 | ||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 20,382.6 | $ | 19,741.1 | $ | 17,821.0 | |||||||||||||
| 1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. | |||||||||||||||
| 2 Comprised of other consumer revolving credit, installment, and consumer lease financing. | |||||||||||||||
| 3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $287,000, $295,000, and $352,000 for the three months ended December 31, 2020, September 30, 2020, and December 31, 2019, respectively. |
| Bank of Hawaii Corporation and Subsidiaries | |||||||||||||
| Average Balances and Interest Rates - Taxable-Equivalent Basis | Table 7b | ||||||||||||
Year Ended | Year Ended | ||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||
| (dollars in millions) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||
| Earning Assets | |||||||||||||
| Interest-Bearing Deposits in Other Banks | $ | 2.2 | $ | - | 0.61 | % | $ | 3.1 | $ | - | 1.33 | % | |
| Funds Sold | 434.1 | 0.9 | 0.21 | 165.7 | 3.6 | 2.14 | |||||||
| Investment Securities | |||||||||||||
| Available-for-Sale | |||||||||||||
| Taxable | 2,961.9 | 60.3 | 2.04 | 2,210.5 | 58.9 | 2.66 | |||||||
| Non-Taxable | 27.6 | 1.2 | 4.36 | 109.6 | 4.1 | 3.78 | |||||||
| Held-to-Maturity | |||||||||||||
| Taxable | 3,125.2 | 65.0 | 2.08 | 3,148.2 | 78.3 | 2.49 | |||||||
| Non-Taxable | 52.6 | 1.4 | 2.66 | 137.8 | 4.2 | 3.04 | |||||||
| Total Investment Securities | 6,167.3 | 127.9 | 2.07 | 5,606.1 | 145.5 | 2.60 | |||||||
| Loans Held for Sale | 19.4 | 0.6 | 3.28 | 21.7 | 0.9 | 3.92 | |||||||
| Loans and Leases 1 | |||||||||||||
| Commercial and Industrial | 1,797.5 | 59.3 | 3.30 | 1,370.9 | 57.9 | 4.23 | |||||||
| Commercial Mortgage | 2,666.1 | 90.9 | 3.41 | 2,400.6 | 102.4 | 4.27 | |||||||
| Construction | 240.1 | 9.4 | 3.92 | 145.2 | 7.4 | 5.07 | |||||||
| Commercial Lease Financing | 111.3 | (1.0) | (0.88) | 154.4 | 3.7 | 2.43 | |||||||
| Residential Mortgage | 3,978.7 | 146.0 | 3.67 | 3,768.2 | 144.7 | 3.84 | |||||||
| Home Equity | 1,642.7 | 56.8 | 3.46 | 1,689.4 | 64.1 | 3.80 | |||||||
| Automobile | 709.1 | 25.3 | 3.57 | 694.9 | 25.1 | 3.62 | |||||||
| Other 2 | 446.6 | 30.9 | 6.91 | 464.8 | 33.3 | 7.16 | |||||||
| Total Loans and Leases | 11,592.1 | 417.6 | 3.60 | 10,688.4 | 438.6 | 4.10 | |||||||
| Other | 33.7 | 0.7 | 1.96 | 35.1 | 1.0 | 2.85 | |||||||
| Total Earning Assets 3 | 18,248.8 | 547.7 | 3.00 | 16,520.1 | 589.6 | 3.57 | |||||||
| Cash and Due from Banks | 263.8 | 234.0 | |||||||||||
| Other Assets | 875.1 | 783.5 | |||||||||||
| Total Assets | $ | 19,387.7 | $ | 17,537.6 | |||||||||
| Interest-Bearing Liabilities | |||||||||||||
| Interest-Bearing Deposits | |||||||||||||
| Demand | $ | 3,426.8 | 2.5 | 0.07 | $ | 2,945.9 | 5.0 | 0.17 | |||||
| Savings | 6,702.7 | 12.4 | 0.19 | 6,034.0 | 32.4 | 0.54 | |||||||
| Time | 1,708.1 | 18.1 | 1.06 | 1,816.3 | 31.0 | 1.71 | |||||||
| Total Interest-Bearing Deposits | 11,837.6 | 33.0 | 0.28 | 10,796.2 | 68.4 | 0.63 | |||||||
| Short-Term Borrowings | 33.5 | 0.2 | 0.47 | 36.5 | 0.9 | 2.41 | |||||||
| Securities Sold Under Agreements to Repurchase | 602.7 | 15.2 | 2.54 | 531.9 | 17.5 | 3.29 | |||||||
| Other Debt | 62.1 | 1.7 | 2.73 | 111.8 | 2.9 | 2.60 | |||||||
| Total Interest-Bearing Liabilities | 12,535.9 | 50.1 | 0.40 | 11,476.4 | 89.7 | 0.78 | |||||||
| Net Interest Income | $ | 497.6 | $ | 499.9 | |||||||||
| Interest Rate Spread | 2.60 | % | 2.79 | % | |||||||||
| Net Interest Margin | 2.73 | % | 3.03 | % | |||||||||
| Noninterest-Bearing Demand Deposits | 5,062.6 | 4,431.9 | |||||||||||
| Other Liabilities | 437.6 | 349.2 | |||||||||||
| Shareholders' Equity | 1,351.6 | 1,280.1 | |||||||||||
| Total Liabilities and Shareholders' Equity | $ | 19,387.7 | $ | 17,537.6 | |||||||||
| 1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. | ||||||||||
| 2 Comprised of other consumer revolving credit, installment, and consumer lease financing. | ||||||||||
| 3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1,297,000 and $2,230,000 for the year ended December 31, 2020 and December 31, 2019, respectively. |
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||
| Analysis of Change in Net Interest Income - Taxable-Equivalent Basis | Table 8a | |||||||||
Three Months Ended December 31, 2020 | ||||||||||
Compared to September 30, 2020 | ||||||||||
| (dollars in millions) | Volume 1 | Rate 1 | Total | |||||||
| Change in Interest Income: | ||||||||||
| Investment Securities | ||||||||||
| Available-for-Sale | ||||||||||
| Taxable | $ | 3.2 | $ | (2.2 | ) | $ | 1.0 | |||
| Non-Taxable | (0.1 | ) | - | (0.1 | ) | |||||
| Held-to-Maturity | ||||||||||
| Taxable | (0.1 | ) | (1.7 | ) | (1.8 | ) | ||||
| Non-Taxable | (0.1 | ) | - | (0.1 | ) | |||||
| Total Investment Securities | 2.9 | (3.9 | ) | (1.0 | ) | |||||
| Loans and Leases | ||||||||||
| Commercial and Industrial | (0.2 | ) | 0.1 | (0.1 | ) | |||||
| Commercial Mortgage | 0.4 | (0.4 | ) | - | ||||||
| Construction | 0.2 | - | 0.2 | |||||||
| Commercial Lease Financing | - | (3.0 | ) | (3.0 | ) | |||||
| Residential Mortgage | 0.9 | (1.2 | ) | (0.3 | ) | |||||
| Home Equity | (0.2 | ) | (0.7 | ) | (0.9 | ) | ||||
| Other 2 | (0.5 | ) | (0.1 | ) | (0.6 | ) | ||||
| Total Loans and Leases | 0.6 | (5.3 | ) | (4.7 | ) | |||||
| Total Change in Interest Income | 3.5 | (9.2 | ) | (5.7 | ) | |||||
| Change in Interest Expense: | ||||||||||
| Interest-Bearing Deposits | ||||||||||
| Demand | - | 0.2 | 0.2 | |||||||
| Savings | - | (0.3 | ) | (0.3 | ) | |||||
| Time | 0.3 | (1.2 | ) | (0.9 | ) | |||||
| Total Interest-Bearing Deposits | 0.3 | (1.3 | ) | (1.0 | ) | |||||
| Total Change in Interest Expense | 0.3 | (1.3 | ) | (1.0 | ) | |||||
| Change in Net Interest Income | $ | 3.2 | $ | (7.9 | ) | $ | (4.7 | ) | ||
| 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 8b | |||||||||
Three Months Ended December 31, 2020 | ||||||||||
Compared to December 31, 2019 | ||||||||||
| (dollars in millions) | Volume 1 | Rate 1 | Total | |||||||
| Change in Interest Income: | ||||||||||
| Funds Sold | $ | 0.5 | $ | (1.1 | ) | $ | (0.6 | ) | ||
| Investment Securities | ||||||||||
| Available-for-Sale | ||||||||||
| Taxable | 5.2 | (5.8 | ) | (0.6 | ) | |||||
| Non-Taxable | (0.2 | ) | - | (0.2 | ) | |||||
| Held-to-Maturity | ||||||||||
| Taxable | 1.5 | (6.0 | ) | (4.5 | ) | |||||
| Non-Taxable | (0.1 | ) | - | (0.1 | ) | |||||
| Total Investment Securities | 6.4 | (11.8 | ) | (5.4 | ) | |||||
| Loans Held for Sale | (0.1 | ) | (0.1 | ) | (0.2 | ) | ||||
| Loans and Leases | ||||||||||
| Commercial and Industrial | 4.5 | (3.8 | ) | 0.7 | ||||||
| Commercial Mortgage | 2.7 | (6.5 | ) | (3.8 | ) | |||||
| Construction | 0.8 | (0.6 | ) | 0.2 | ||||||
| Commercial Lease Financing | (0.1 | ) | (3.2 | ) | (3.3 | ) | ||||
| Residential Mortgage | 2.2 | (2.5 | ) | (0.3 | ) | |||||
| Home Equity | (0.8 | ) | (1.7 | ) | (2.5 | ) | ||||
| Automobile | (0.1 | ) | - | (0.1 | ) | |||||
| Other 2 | (1.3 | ) | (0.2 | ) | (1.5 | ) | ||||
| Total Loans and Leases | 7.9 | (18.5 | ) | (10.6 | ) | |||||
| Total Change in Interest Income | 14.7 | (31.5 | ) | (16.8 | ) | |||||
| Change in Interest Expense: | ||||||||||
| Interest-Bearing Deposits | ||||||||||
| Demand | 0.3 | (0.7 | ) | (0.4 | ) | |||||
| Savings | 0.6 | (7.2 | ) | (6.6 | ) | |||||
| Time | (0.5 | ) | (4.0 | ) | (4.5 | ) | ||||
| Total Interest-Bearing Deposits | 0.4 | (11.9 | ) | (11.5 | ) | |||||
| Securities Sold Under Agreements to Repurchase | (0.1 | ) | (0.4 | ) | (0.5 | ) | ||||
| Other Debt | (0.3 | ) | (0.1 | ) | (0.4 | ) | ||||
| Total Change in Interest Expense | - | (12.4 | ) | (12.4 | ) | |||||
| Change in Net Interest Income | $ | 14.7 | $ | (19.1 | ) | $ | (4.4 | ) | ||
| 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 Hawaii Corporation and Subsidiaries | ||||||||||
| Analysis of Change in Net Interest Income - Taxable-Equivalent Basis | Table 8c | |||||||||
Year Ended December 31, 2020 | ||||||||||
Compared to December 31, 2019 | ||||||||||
| (dollars in millions) | Volume 1 | Rate 1 | Total | |||||||
| Change in Interest Income: | ||||||||||
| Funds Sold | $ | 2.4 | $ | (5.1 | ) | $ | (2.7 | ) | ||
| Investment Securities | ||||||||||
| Available-for-Sale | ||||||||||
| Taxable | 17.2 | (15.8 | ) | 1.4 | ||||||
| Non-Taxable | (3.5 | ) | 0.6 | (2.9 | ) | |||||
| Held-to-Maturity | ||||||||||
| Taxable | (0.6 | ) | (12.7 | ) | (13.3 | ) | ||||
| Non-Taxable | (2.3 | ) | (0.5 | ) | (2.8 | ) | ||||
| Total Investment Securities | 10.8 | (28.4 | ) | (17.6 | ) | |||||
| Loans Held for Sale | (0.1 | ) | (0.2 | ) | (0.3 | ) | ||||
| Loans and Leases | ||||||||||
| Commercial and Industrial | 15.7 | (14.3 | ) | 1.4 | ||||||
| Commercial Mortgage | 10.5 | (22.0 | ) | (11.5 | ) | |||||
| Construction | 4.0 | (2.0 | ) | 2.0 | ||||||
| Commercial Lease Financing | (0.8 | ) | (3.9 | ) | (4.7 | ) | ||||
| Residential Mortgage | 7.9 | (6.6 | ) | 1.3 | ||||||
| Home Equity | (1.7 | ) | (5.6 | ) | (7.3 | ) | ||||
| Automobile | 0.5 | (0.3 | ) | 0.2 | ||||||
| Other 2 | (1.3 | ) | (1.1 | ) | (2.4 | ) | ||||
| Total Loans and Leases | 34.8 | (55.8 | ) | (21.0 | ) | |||||
| Other | - | (0.3 | ) | (0.3 | ) | |||||
| Total Change in Interest Income | 47.9 | (89.8 | ) | (41.9 | ) | |||||
| Change in Interest Expense: | ||||||||||
| Interest-Bearing Deposits | ||||||||||
| Demand | 0.7 | (3.2 | ) | (2.5 | ) | |||||
| Savings | 3.3 | (23.3 | ) | (20.0 | ) | |||||
| Time | (1.7 | ) | (11.2 | ) | (12.9 | ) | ||||
| Total Interest-Bearing Deposits | 2.3 | (37.7 | ) | (35.4 | ) | |||||
| Short-Term Borrowings | (0.1 | ) | (0.6 | ) | (0.7 | ) | ||||
| Securities Sold Under Agreements to Repurchase | 2.1 | (4.4 | ) | (2.3 | ) | |||||
| Other Debt | (1.3 | ) | 0.1 | (1.2 | ) | |||||
| Total Change in Interest Expense | 3.0 | (42.6 | ) | (39.6 | ) | |||||
| Change in Net Interest Income | $ | 44.9 | $ | (47.2 | ) | $ | (2.3 | ) | ||
| 1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. | ||||
| 2 Comprised of other consumer revolving credit, installment, and consumer lease financing. |
| Bank of Hawaii Corporation and Subsidiaries | |||||||||||||
| Salaries and Benefits | Table 9 | ||||||||||||
Three Months Ended | Year Ended | ||||||||||||
December 31, | September 30, | December 31, | December 31, | ||||||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||
| Salaries | $ | 33,907 | $ | 34,046 | $ | 33,465 | $ | 134,178 | $ | 132,237 | |||
| Incentive Compensation | 3,084 | 2,683 | 4,864 | 9,153 | 21,913 | ||||||||
| Share-Based Compensation | 2,029 | 1,442 | 1,475 | 6,783 | 8,573 | ||||||||
| Commission Expense | 2,164 | 1,800 | 2,080 | 6,985 | 6,474 | ||||||||
| Retirement and Other Benefits | 5,212 | 4,164 | 4,279 | 18,528 | 18,151 | ||||||||
| Payroll Taxes | 2,292 | 2,624 | 2,386 | 12,241 | 11,795 | ||||||||
| Medical, Dental, and Life Insurance | 1,523 | 3,422 | 2,903 | 12,917 | 15,202 | ||||||||
| Separation Expense | (11 | ) | 1,770 | 212 | 6,544 | 1,761 | |||||||
| Total Salaries and Benefits | $ | 50,200 | $ | 51,951 | $ | 51,664 | $ | 207,329 | $ | 216,106 | |||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||
| Loan and Lease Portfolio Balances | Table 10 | |||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||
| (dollars in thousands) | 2020 | 2020 | 2020 | 2020 | 2019 | |||||||
| Commercial | ||||||||||||
| Commercial and Industrial | $ | 1,875,293 | $ | 1,908,482 | $ | 1,956,939 | $ | 1,558,232 | $ | 1,379,152 | ||
| Commercial Mortgage | 2,854,829 | 2,745,611 | 2,707,534 | 2,616,243 | 2,518,051 | |||||||
| Construction | 259,798 | 250,943 | 245,099 | 245,390 | 194,170 | |||||||
| Lease Financing | 110,766 | 111,831 | 113,187 | 110,704 | 122,454 | |||||||
| Total Commercial | 5,100,686 | 5,016,867 | 5,022,759 | 4,530,569 | 4,213,827 | |||||||
| Consumer | ||||||||||||
| Residential Mortgage | 4,130,513 | 4,044,228 | 3,989,393 | 3,928,183 | 3,891,100 | |||||||
| Home Equity | 1,604,538 | 1,605,486 | 1,640,887 | 1,692,154 | 1,676,073 | |||||||
| Automobile | 708,800 | 709,937 | 700,702 | 716,214 | 720,286 | |||||||
| Other 1 | 395,483 | 417,090 | 451,629 | 485,660 | 489,606 | |||||||
| Total Consumer | 6,839,334 | 6,776,741 | 6,782,611 | 6,822,211 | 6,777,065 | |||||||
| Total Loans and Leases | $ | 11,940,020 | $ | 11,793,608 | $ | 11,805,370 | $ | 11,352,780 | $ | 10,990,892 | ||
| Deposits | ||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||
| (dollars in thousands) | 2020 | 2020 | 2020 | 2020 | 2019 | |||||||
| Consumer | $ | 9,347,725 | $ | 8,903,808 | $ | 8,766,885 | $ | 8,294,464 | $ | 8,118,494 | ||
| Commercial | 7,302,832 | 7,159,531 | 7,295,033 | 6,358,583 | 6,324,214 | |||||||
| Public and Other | 1,561,064 | 1,675,544 | 1,361,237 | 1,402,314 | 1,341,774 | |||||||
| Total Deposits | $ | 18,211,621 | $ | 17,738,883 | $ | 17,423,155 | $ | 16,055,361 | $ | 15,784,482 | ||
| 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 | ||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2020 | 2020 | 2019 | ||||||||||||
| Non-Performing Assets | |||||||||||||||||
| Non-Accrual Loans and Leases | |||||||||||||||||
| Commercial | |||||||||||||||||
| Commercial and Industrial | $ | 441 | $ | 475 | $ | 459 | $ | 634 | $ | 830 | |||||||
| Commercial Mortgage | 8,527 | 8,615 | 8,672 | 9,048 | 9,244 | ||||||||||||
| Total Commercial | 8,968 | 9,090 | 9,131 | 9,682 | 10,074 | ||||||||||||
| Consumer | |||||||||||||||||
| Residential Mortgage | 3,223 | 3,543 | 5,888 | 4,330 | 4,125 | ||||||||||||
| Home Equity | 3,958 | 3,661 | 5,176 | 4,086 | 3,181 | ||||||||||||
| Total Consumer | 7,181 | 7,204 | 11,064 | 8,416 | 7,306 | ||||||||||||
| Total Non-Accrual Loans and Leases | 16,149 | 16,294 | 20,195 | 18,098 | 17,380 | ||||||||||||
| Foreclosed Real Estate | 2,332 | 2,332 | 2,506 | 2,506 | 2,737 | ||||||||||||
| Total Non-Performing Assets | $ | 18,481 | $ | 18,626 | $ | 22,701 | $ | 20,604 | $ | 20,117 | |||||||
| Accruing Loans and Leases Past Due 90 Days or More | |||||||||||||||||
| Consumer | |||||||||||||||||
| Residential Mortgage | $ | 5,274 | $ | 6,607 | $ | 4,937 | $ | 3,024 | $ | 1,839 | |||||||
| Home Equity | 3,187 | 2,571 | 3,519 | 3,426 | 4,125 | ||||||||||||
| Automobile | 925 | 156 | 133 | 866 | 949 | ||||||||||||
| Other 1 | 1,160 | 258 | 296 | 1,205 | 1,493 | ||||||||||||
| Total Consumer | 10,546 | 9,592 | 8,885 | 8,521 | 8,406 | ||||||||||||
| Total Accruing Loans and Leases Past Due 90 Days or More | $ | 10,546 | $ | 9,592 | $ | 8,885 | $ | 8,521 | $ | 8,406 | |||||||
| Restructured Loans on Accrual Status | |||||||||||||||||
| and Not Past Due 90 Days or More | $ | 68,065 | $ | 58,650 | $ | 59,713 | $ | 61,425 | $ | 63,103 | |||||||
| Total Loans and Leases | $ | 11,940,020 | $ | 11,793,608 | $ | 11,805,370 | $ | 11,352,780 | $ | 10,990,892 | |||||||
| Ratio of Non-Accrual Loans and Leases to Total Loans and Leases | 0.14 | % | 0.14 | % | 0.17 | % | 0.16 | % | 0.16 | % | |||||||
| Ratio of Non-Performing Assets to Total Loans and Leases | |||||||||||||||||
| and Foreclosed Real Estate | 0.15 | % | 0.16 | % | 0.19 | % | 0.18 | % | 0.18 | % | |||||||
| Ratio of Commercial Non-Performing Assets to Total Commercial Loans and | |||||||||||||||||
| Leases and Commercial Foreclosed Real Estate | 0.18 | % | 0.18 | % | 0.18 | % | 0.21 | % | 0.24 | % | |||||||
| Ratio of Consumer Non-Performing Assets to Total Consumer Loans | |||||||||||||||||
| and Leases and Consumer Foreclosed Real Estate | 0.14 | % | 0.14 | % | 0.20 | % | 0.16 | % | 0.15 | % | |||||||
| Ratio of Non-Performing Assets and Accruing Loans and Leases | |||||||||||||||||
| Past Due 90 Days or More to Total Loans and Leases | |||||||||||||||||
| and Foreclosed Real Estate | 0.24 | % | 0.24 | % | 0.27 | % | 0.26 | % | 0.26 | % | |||||||
| Quarter to Quarter Changes in Non-Performing Assets | |||||||||||||||||
| Balance at Beginning of Quarter | $ | 18,626 | $ | 22,701 | $ | 20,604 | $ | 20,117 | $ | 21,645 | |||||||
| Additions | 434 | 938 | 5,856 | 1,754 | 883 | ||||||||||||
| Reductions | |||||||||||||||||
| Payments | (490 | ) | (3,729 | ) | (2,736 | ) | (315 | ) | (495 | ) | |||||||
| Return to Accrual Status | - | (1,035 | ) | (822 | ) | (437 | ) | (1,673 | ) | ||||||||
| Sales of Foreclosed Real Estate | - | (175 | ) | - | (231 | ) | (201 | ) | |||||||||
| Charge-offs/Write-downs | (89 | ) | (74 | ) | (201 | ) | (284 | ) | (42 | ) | |||||||
| Total Reductions | (579 | ) | (5,013 | ) | (3,759 | ) | (1,267 | ) | (2,411 | ) | |||||||
| Balance at End of Quarter | $ | 18,481 | $ | 18,626 | $ | 22,701 | $ | 20,604 | $ | 20,117 | |||||||
| 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 | Year Ended | ||||||||||||||||
December 31, | September 30, | December 31, | December 31, | ||||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Balance at Beginning of Period | $ | 205,813 | $ | 175,958 | $ | 115,758 | $ | 116,849 | $ | 113,515 | |||||||
| CECL Adoption (Day 1) Impact | - | - | - | (5,072 | ) | - | |||||||||||
| Loans and Leases Charged-Off | |||||||||||||||||
| Commercial | |||||||||||||||||
| Commercial and Industrial | (177 | ) | (171 | ) | (307 | ) | (1,697 | ) | (1,122 | ) | |||||||
| Commercial Mortgage | - | - | - | - | (1,616 | ) | |||||||||||
| Consumer | |||||||||||||||||
| Residential Mortgage | (120 | ) | - | (50 | ) | (204 | ) | (112 | ) | ||||||||
| Home Equity | (81 | ) | (43 | ) | (245 | ) | (397 | ) | (900 | ) | |||||||
| Automobile | (393 | ) | (489 | ) | (1,990 | ) | (6,496 | ) | (7,130 | ) | |||||||
| Other 1 | (2,460 | ) | (1,644 | ) | (3,651 | ) | (12,244 | ) | (13,075 | ) | |||||||
| Total Loans and Leases Charged-Off | (3,231 | ) | (2,347 | ) | (6,243 | ) | (21,038 | ) | (23,955 | ) | |||||||
| Recoveries on Loans and Leases Previously Charged-Off | |||||||||||||||||
| Commercial | |||||||||||||||||
| Commercial and Industrial | 244 | 231 | 293 | 2,288 | 1,513 | ||||||||||||
| Commercial Mortgage | - | - | - | 40 | - | ||||||||||||
| Consumer | |||||||||||||||||
| Residential Mortgage | 497 | 414 | 699 | 1,292 | 1,927 | ||||||||||||
| Home Equity | 868 | 727 | 577 | 2,892 | 2,339 | ||||||||||||
| Automobile | 910 | 1,313 | 512 | 3,775 | 2,961 | ||||||||||||
| Other 1 | 968 | 1,119 | 503 | 3,613 | 2,549 | ||||||||||||
| Total Recoveries on Loans and Leases Previously Charged-Off | 3,487 | 3,804 | 2,584 | 13,900 | 11,289 | ||||||||||||
| Net Loans and Leases Recovered (Charged-Off) | 256 | 1,457 | (3,659 | ) | (7,138 | ) | (12,666 | ) | |||||||||
| Provision for Credit Losses | 15,200 | 28,600 | 4,750 | 117,800 | 16,000 | ||||||||||||
| Provision for Unfunded Commitments | 34 | (202 | ) | - | (1,136 | ) | - | ||||||||||
| Balance at End of Period 2 | $ | 221,303 | $ | 205,813 | $ | 116,849 | $ | 221,303 | $ | 116,849 | |||||||
| Components | |||||||||||||||||
| Allowance for Credit Losses | $ | 216,252 | $ | 203,496 | $ | 110,027 | $ | 216,252 | $ | 110,027 | |||||||
| Allowance for Accrued Interest Receivable 3 | 2,700 | - | - | 2,700 | - | ||||||||||||
| Reserve for Unfunded Commitments | 2,351 | 2,317 | 6,822 | 2,351 | 6,822 | ||||||||||||
| Total Reserve for Credit Losses | $ | 221,303 | $ | 205,813 | $ | 116,849 | $ | 221,303 | $ | 116,849 | |||||||
| Average Loans and Leases Outstanding | $ | 11,835,929 | $ | 11,739,785 | $ | 10,878,672 | $ | 11,592,093 | $ | 10,688,424 | |||||||
| Ratio of Net Loans and Leases Charged-Off (Recovered) to | |||||||||||||||||
| Average Loans and Leases Outstanding (annualized) | (0.01 | %) | (0.05 | %) | 0.13 | % | 0.06 | % | 0.12 | % | |||||||
| Ratio of Allowance for Credit Losses to Loans and Leases Outstanding | 1.81 | % | 1.73 | % | 1.00 | % | 1.81 | % | 1.00 | % | |||||||
| 1 Comprised of other revolving credit, installment, and lease financing. | |||||||||
| 2 Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition. | |||||||||
| 3 On December 31 2020, the Company recorded a $2.7 million reserve on accrued interest receivable related to loans in which payment forbearances were granted to borrowers impacted by the COVID-19 pandemic. The reserve was recorded as a contra-asset against accrued interest receivable with the offset to provision for credit losses. |
| 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 December 31, 2020 | |||||||||||||
| Net Interest Income | $ | 71,707 | $ | 44,373 | $ | 3,419 | $ | 119,499 | |||||
| Provision for Credit Losses | (128 | ) | (129 | ) | 15,457 | 15,200 | |||||||
| Net Interest Income (Loss) After Provision for Credit Losses | 71,835 | 44,502 | (12,038 | ) | 104,299 | ||||||||
| Noninterest Income | 35,091 | 8,040 | 2,127 | 45,258 | |||||||||
| Noninterest Expense | (78,433 | ) | (15,742 | ) | (4,479 | ) | (98,654 | ) | |||||
| Income (Loss) Before Income Taxes | 28,493 | 36,800 | (14,390 | ) | 50,903 | ||||||||
| Provision for Income Taxes | (7,242 | ) | (9,804 | ) | 8,457 | (8,589 | ) | ||||||
| Net Income (Loss) | $ | 21,251 | $ | 26,996 | $ | (5,933 | ) | $ | 42,314 | ||||
| Total Assets as of December 31, 2020 | $ | 7,478,813 | $ | 5,116,807 | $ | 8,008,031 | $ | 20,603,651 | |||||
| Three Months Ended December 31, 2019 1 | |||||||||||||
| Net Interest Income | $ | 76,099 | $ | 45,475 | $ | 2,311 | $ | 123,885 | |||||
| Provision for Credit Losses | 3,819 | (165 | ) | 1,096 | 4,750 | ||||||||
| Net Interest Income After Provision for Credit Losses | 72,280 | 45,640 | 1,215 | 119,135 | |||||||||
| Noninterest Income | 35,306 | 10,624 | 1,772 | 47,702 | |||||||||
| Noninterest Expense | (68,494 | ) | (21,071 | ) | (3,531 | ) | (93,096 | ) | |||||
| Income (Loss) Before Income Taxes | 39,092 | 35,193 | (544 | ) | 73,741 | ||||||||
| Provision for Income Taxes | (9,909 | ) | (6,345 | ) | 656 | (15,598 | ) | ||||||
| Net Income | $ | 29,183 | $ | 28,848 | $ | 112 | $ | 58,143 | |||||
| Total Assets as of December 31, 2019 1 | $ | 7,054,511 | $ | 4,254,261 | $ | 6,786,724 | $ | 18,095,496 | |||||
| 1 Certain prior period information has been reclassified to conform to current presentation. |
| Bank of Hawaii Corporation and Subsidiaries | |||||||||||||
| Business Segments Selected Financial Information | Table 13b | ||||||||||||
| Consumer | Commercial | Treasury | Consolidated | ||||||||||
| (dollars in thousands) | Banking | Banking | and Other | Total | |||||||||
| Year Ended December 31, 2020 | |||||||||||||
| Net Interest Income | $ | 292,710 | $ | 188,626 | $ | 14,986 | $ | 496,322 | |||||
| Provision for Credit Losses | 8,087 | (948 | ) | 110,661 | 117,800 | ||||||||
| Net Interest Income (Loss) After Provision for Credit Losses | 284,623 | 189,574 | (95,675 | ) | 378,522 | ||||||||
| Noninterest Income | 128,400 | 34,523 | 21,486 | 184,409 | |||||||||
| Noninterest Expense | (289,177 | ) | (63,294 | ) | (21,336 | ) | (373,807 | ) | |||||
| Income (Loss) Before Income Taxes | 123,846 | 160,803 | (95,525 | ) | 189,124 | ||||||||
| Provision for Income Taxes | (31,476 | ) | (40,081 | ) | 36,237 | (35,320 | ) | ||||||
| Net Income (Loss) | $ | 92,370 | $ | 120,722 | $ | (59,288 | ) | $ | 153,804 | ||||
| Total Assets as of December 31, 2020 | $ | 7,478,813 | $ | 5,116,807 | $ | 8,008,031 | $ | 20,603,651 | |||||
| Year Ended December 31, 2019 1 | |||||||||||||
| Net Interest Income | $ | 305,803 | $ | 185,259 | $ | 6,653 | $ | 497,715 | |||||
| Provision for Credit Losses | 11,685 | 976 | 3,339 | 16,000 | |||||||||
| Net Interest Income After Provision for Credit Losses | 294,118 | 184,283 | 3,314 | 481,715 | |||||||||
| Noninterest Income | 142,378 | 33,362 | 7,598 | 183,338 | |||||||||
| Noninterest Expense | (281,662 | ) | (84,616 | ) | (12,949 | ) | (379,227 | ) | |||||
| Income Before Income Taxes | 154,834 | 133,029 | (2,037 | ) | 285,826 | ||||||||
| Provision for Income Taxes | (38,654 | ) | (28,852 | ) | 7,593 | (59,913 | ) | ||||||
| Net Income | $ | 116,180 | $ | 104,177 | $ | 5,556 | $ | 225,913 | |||||
| Total Assets as of December 31, 2019 1 | $ | 7,054,511 | $ | 4,254,261 | $ | 6,786,724 | $ | 18,095,496 | |||||
| 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 | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| (dollars in thousands, except per share amounts) | 2020 | 2020 | 2020 | 2020 | 2019 | ||||||||||||||
| Quarterly Operating Results | |||||||||||||||||||
| Interest Income | |||||||||||||||||||
| Interest and Fees on Loans and Leases | $ | 98,471 | $ | 103,189 | $ | 107,628 | $ | 108,210 | $ | 109,223 | |||||||||
| Income on Investment Securities | |||||||||||||||||||
| Available-for-Sale | 15,449 | 14,558 | 14,576 | 16,711 | 16,158 | ||||||||||||||
| Held-to-Maturity | 14,113 | 15,967 | 16,723 | 19,252 | 18,750 | ||||||||||||||
| Deposits | 1 | 3 | 1 | 9 | 8 | ||||||||||||||
| Funds Sold | 115 | 149 | 92 | 546 | 723 | ||||||||||||||
| Other | 167 | 151 | 125 | 218 | 239 | ||||||||||||||
| Total Interest Income | 128,316 | 134,017 | 139,145 | 144,946 | 145,101 | ||||||||||||||
| Interest Expense | |||||||||||||||||||
| Deposits | 4,861 | 5,891 | 7,954 | 14,260 | 16,407 | ||||||||||||||
| Securities Sold Under Agreements to Repurchase | 3,614 | 3,622 | 4,020 | 4,025 | 4,071 | ||||||||||||||
| Funds Purchased | 5 | - | 18 | 72 | 25 | ||||||||||||||
| Short-Term Borrowings | - | 1 | 22 | 39 | - | ||||||||||||||
| Other Debt | 337 | 337 | 440 | 584 | 713 | ||||||||||||||
| Total Interest Expense | 8,817 | 9,851 | 12,454 | 18,980 | 21,216 | ||||||||||||||
| Net Interest Income | 119,499 | 124,166 | 126,691 | 125,966 | 123,885 | ||||||||||||||
| Provision for Credit Losses | 15,200 | 28,600 | 40,400 | 33,600 | 4,750 | ||||||||||||||
| Net Interest Income After Provision for Credit Losses | 104,299 | 95,566 | 86,291 | 92,366 | 119,135 | ||||||||||||||
| Noninterest Income | |||||||||||||||||||
| Trust and Asset Management | 11,239 | 10,752 | 10,550 | 10,915 | 11,157 | ||||||||||||||
| Mortgage Banking | 6,851 | 4,047 | 4,278 | 2,695 | 3,199 | ||||||||||||||
| Service Charges on Deposit Accounts | 6,335 | 6,027 | 5,097 | 7,451 | 7,835 | ||||||||||||||
| Fees, Exchange, and Other Service Charges | 12,143 | 12,296 | 9,417 | 13,200 | 14,533 | ||||||||||||||
| Investment Securities Gains (Losses), Net | (1,193 | ) | (1,121 | ) | 13,216 | (970 | ) | (906 | ) | ||||||||||
| Annuity and Insurance | 670 | 881 | 883 | 928 | 1,272 | ||||||||||||||
| Bank-Owned Life Insurance | 2,353 | 1,806 | 1,649 | 1,580 | 1,879 | ||||||||||||||
| Other | 6,860 | 7,046 | 6,178 | 10,350 | 8,733 | ||||||||||||||
| Total Noninterest Income | 45,258 | 41,734 | 51,268 | 46,149 | 47,702 | ||||||||||||||
| Noninterest Expense | |||||||||||||||||||
| Salaries and Benefits | 50,200 | 51,951 | 50,715 | 54,463 | 51,664 | ||||||||||||||
| Net Occupancy | 14,536 | 7,281 | 8,761 | 8,955 | 8,824 | ||||||||||||||
| Net Equipment | 9,574 | 9,223 | 8,195 | 8,456 | 7,930 | ||||||||||||||
| Data Processing | 4,604 | 4,691 | 4,416 | 4,788 | 4,828 | ||||||||||||||
| Professional Fees | 3,174 | 2,743 | 3,061 | 3,208 | 3,257 | ||||||||||||||
| FDIC Insurance | 1,484 | 1,282 | 1,558 | 1,456 | 1,376 | ||||||||||||||
| Other | 15,082 | 12,778 | 12,186 | 14,986 | 15,217 | ||||||||||||||
| Total Noninterest Expense | 98,654 | 89,949 | 88,892 | 96,312 | 93,096 | ||||||||||||||
| Income Before Provision for Income Taxes | 50,903 | 47,351 | 48,667 | 42,203 | 73,741 | ||||||||||||||
| Provision for Income Taxes | 8,589 | 9,511 | 9,759 | 7,461 | 15,598 | ||||||||||||||
| Net Income | $ | 42,314 | $ | 37,840 | $ | 38,908 | $ | 34,742 | $ | 58,143 | |||||||||
| Basic Earnings Per Share | $ | 1.06 | $ | 0.95 | $ | 0.98 | $ | 0.88 | $ | 1.46 | |||||||||
| Diluted Earnings Per Share | $ | 1.06 | $ | 0.95 | $ | 0.98 | $ | 0.87 | $ | 1.45 | |||||||||
| Balance Sheet Totals | |||||||||||||||||||
| Loans and Leases | $ | 11,940,020 | $ | 11,793,608 | $ | 11,805,370 | $ | 11,352,780 | $ | 10,990,892 | |||||||||
| Total Assets | 20,603,651 | 20,109,489 | 19,769,942 | 18,542,233 | 18,095,496 | ||||||||||||||
| Total Deposits | 18,211,621 | 17,738,883 | 17,423,155 | 16,055,361 | 15,784,482 | ||||||||||||||
| Total Shareholders' Equity | 1,374,507 | 1,361,739 | 1,352,082 | 1,327,929 | 1,286,832 | ||||||||||||||
| Performance Ratios | |||||||||||||||||||
| Return on Average Assets | 0.83 | % | 0.76 | % | 0.82 | % | 0.77 | % | 1.29 | % | |||||||||
| Return on Average Shareholders' Equity | 12.26 | 11.01 | 11.58 | 10.64 | 17.84 | ||||||||||||||
| Efficiency Ratio 1 | 59.88 | 54.22 | 49.95 | 55.96 | 54.26 | ||||||||||||||
| Net Interest Margin 2 | 2.48 | 2.67 | 2.83 | 2.96 | 2.95 | ||||||||||||||
| 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 | ||||||||||||||||||
| Eleven Months Ended | Year Ended | ||||||||||||||||||
| ($ in millions; jobs in thousands) | November 30, 2020 | December 31, 2019 | December 31, 2018 | ||||||||||||||||
| Hawaii Economic Trends | |||||||||||||||||||
| State General Fund Revenues 1 | $ | 5,894.5 | (12.5 | ) | % | $ | 7,316.5 | 5.5 | % | $ | 6,933.1 | 6.9 | % | ||||||
| General Excise and Use Tax Revenue 1 | $ | 2,797.3 | (15.7 | ) | % | $ | 3,602.2 | 5.1 | % | $ | 3,426.5 | 2.3 | % | ||||||
| Jobs 2 | 591.0 | 648.9 | 649.9 | ||||||||||||||||
November 30, | December 31, | ||||||||||||||||||
| (spot rates) | 2020 | 2019 | 2018 | ||||||||||||||||
| Unemployment 3 | |||||||||||||||||||
| Statewide, seasonally adjusted | 10.1 | % | 2.7 | % | 2.6 | % | |||||||||||||
| Oahu | 8.8 | 2.1 | 2.2 | ||||||||||||||||
| Island of Hawaii | 9.8 | 2.8 | 2.9 | ||||||||||||||||
| Maui | 16.0 | 2.2 | 2.2 | ||||||||||||||||
| Kauai | 13.5 | 2.4 | 2.3 | ||||||||||||||||
December 31, | |||||||||||||||||||
| (percentage change, except months of inventory) | 2020 | 2019 | 2018 | 2017 | |||||||||||||||
| Housing Trends (Single Family Oahu) 4 | |||||||||||||||||||
| Median Home Price | 5.2 | % | (0.1 | ) | % | 4.6 | % | 2.7 | % | ||||||||||
| Home Sales Volume (units) | 2.3 | % | 3.9 | % | (7.7 | ) | % | 6.3 | % | ||||||||||
| Months of Inventory | 1.4 | 2.5 | 2.8 | 2.1 | |||||||||||||||
| Monthly Visitor Arrivals, | Percentage Change | ||||||||||||||||||
| (in thousands) | Not Seasonally Adjusted | from Previous Year | |||||||||||||||||
| Tourism 5 | |||||||||||||||||||
| November 30, 2020 | 183.8 | (77.3 | ) | ||||||||||||||||
| October 31, 2020 | 76.6 | (90.4 | ) | ||||||||||||||||
| September 30, 2020 | 18.9 | (97.4 | ) | ||||||||||||||||
| August 31, 2020 | 22.3 | (97.6 | ) | ||||||||||||||||
| July 31, 2020 | 22.6 | (97.7 | ) | ||||||||||||||||
| June 30, 2020 | 17.1 | (98.2 | ) | ||||||||||||||||
| May 31, 2020 | 9.1 | (98.9 | ) | ||||||||||||||||
| April 30, 2020 | 4.6 | (99.5 | ) | ||||||||||||||||
| March 31, 2020 | 434.9 | (53.7 | ) | ||||||||||||||||
| February 29, 2020 | 828.1 | 5.8 | |||||||||||||||||
| January 31, 2020 | 862.6 | 5.1 | |||||||||||||||||
| December 31, 2019 | 954.3 | 6.0 | |||||||||||||||||
| November 30, 2019 | 809.1 | 3.9 | |||||||||||||||||
| October 31, 2019 | 796.2 | 4.3 | |||||||||||||||||
| September 30, 2019 | 738.2 | 3.1 | |||||||||||||||||
| August 31, 2019 | 926.4 | 9.6 | |||||||||||||||||
| July 31, 2019 | 995.2 | 5.9 | |||||||||||||||||
| June 30, 2019 | 951.6 | 6.1 | |||||||||||||||||
| May 31, 2019 | 841.4 | 4.6 | |||||||||||||||||
| April 30, 2019 | 856.3 | 6.6 | |||||||||||||||||
| March 31, 2019 | 939.1 | 3.9 | |||||||||||||||||
| February 28, 2019 | 782.7 | 0.5 | |||||||||||||||||
| January 31, 2019 | 820.6 | 3.0 | |||||||||||||||||
| 1 Source: Hawaii Department of Business, Economic Development & Tourism | ||||||||||
| 2 Source: U. S. Bureau of Labor Statistics | ||||||||||
| 3 Source: UHERO for 2020 and Hawaii Department of Labor and Industrial Relations for 2019 and 2018. County jobs data not seasonally adjusted. | ||||||||||
| 4 Source: Honolulu Board of REALTORS | ||||||||||
| 5 Source: Hawaii Tourism Authority |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210125005184/en/
Contacts:
Melissa Torres-Laing
Email: Melissa.Torres-Laing@boh.com
Telephone: 808-694-8384
Mobile: 808-859-1703
