Sign In  |  Register  |  About Corte Madera  |  Contact Us

Corte Madera, CA
September 01, 2020 10:27am
7-Day Forecast | Traffic
  • Search Hotels in Corte Madera

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Bank of Hawaii Corporation Second Quarter 2019 Financial Results

Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $1.40 for the second quarter of 2019, down from diluted earnings per share of $1.43 in the previous quarter, and up from diluted earnings per share of $1.30 in the same quarter last year. Net income for the second quarter of 2019 was $56.9 million compared with net income of $58.8 million in the first quarter of 2019 and net income of $54.7 million in the second quarter of 2018.

Loan and lease balances increased to $10.8 billion at June 30, 2019, up 2.0 percent from March 31, 2019, and up 7.0 percent compared with June 30, 2018. Total deposits were $15.5 billion at the end of the second quarter of 2019, up 1.5 percent from March 31, 2019 and up 3.7 percent compared with June 30, 2018.

“Bank of Hawaii Corporation continued to perform well during the second quarter of 2019,” said Peter Ho, Chairman, President and CEO. “Loans and deposits continued to grow, asset quality remains strong, and we maintained our disciplined approach to risk, capital, and expense management.”

The return on average assets for the second quarter of 2019 was 1.31 percent, down from 1.38 percent in the previous quarter and up from 1.30 percent in the same quarter last year. The return on average equity for the second quarter of 2019 was 17.97 percent, down from 18.81 percent for the first quarter of 2019 and up from 17.68 percent for the second quarter of 2018. The efficiency ratio for the second quarter of 2019 improved to 54.69 percent compared with 55.22 percent in the previous quarter and 56.12 percent in the same quarter last year.

For the six-month period ended June 30, 2019, net income was $115.7 million, an increase of $6.9 million from net income of $108.8 million during the same period last year. Diluted earnings per share were $2.82 for the first half of 2019, an increase of $0.25 from diluted earnings per share of $2.57 for the first half of 2018.

The return on average assets for the six-month period ended June 30, 2019 was 1.34 percent compared with the return on average assets of 1.29 percent for the same six months in 2018. The year-to-date return on average equity was 18.39 percent for the first half of 2019 compared with the return on average equity of 17.71 percent for the six-month period ended June 30, 2018. The efficiency ratio for the first half of 2019 improved to 54.95 percent compared with 57.01 percent in the same period last year.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the second quarter of 2019 was $124.7 million, a decrease of $1.1 million compared with $125.8 million in the first quarter of 2019 and an increase of $2.9 million compared with $121.8 million in the second quarter of 2018. Net interest income, on a taxable equivalent basis, for the first half of 2019 was $250.5 million, an increase of $8.4 million compared with net interest income of $242.1 million for the first half of 2018. Analyses of the changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin was 3.04 percent for the second quarter of 2019, down 8 basis points from 3.12 percent in the previous quarter and equal to the net interest margin of 3.04 percent in the second quarter of 2018. The net interest margin for the first six months of 2019 was 3.08 percent compared with the net interest margin of 3.02 percent for the same six-month period last year.

Results for the second quarter of 2019 included a provision for credit losses of $4.0 million compared with $3.0 million in the previous quarter and $3.5 million in the same quarter last year. The provision for credit losses during the first half of 2019 was $7.0 million compared with a provision for credit losses of $7.6 million during the same period in 2018.

Noninterest income was $45.5 million in the second quarter of 2019, an increase of $1.8 million compared with $43.7 million in the first quarter of 2019 and an increase of $4.2 million compared with $41.3 million in the second quarter of 2018. There were no significant items in noninterest income during the second quarter of 2019. Noninterest income in the first quarter of 2019 included a $1.4 million commission related to insurance products offered through a third-party administrator. Noninterest income during the second quarter of 2018 included a negative adjustment of $1.0 million related to a change in the Visa Class B conversion ratio. Noninterest income for the first half of 2019 was $89.1 million, an increase of $3.8 million compared with noninterest income of $85.3 million for the first half of 2018.

Noninterest expense was $92.7 million in the second quarter of 2019, a decrease of $0.4 million compared with $93.1 million in the first quarter of 2019 and an increase of $1.9 million compared with $90.8 million in the second quarter last year. There were no significant items in noninterest expense during the second quarter of 2019 or the second quarter of 2018. Noninterest expense in the first quarter of 2019 included seasonal payroll expenses of approximately $2.7 million. Noninterest expense for the first half of 2019 was $185.8 million, an increase of $0.6 million compared with noninterest expense of $185.2 million for the first half of 2018. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the second quarter of 2019 was 21.84 percent compared with 18.85 percent in the previous quarter and 18.94 percent in the same quarter last year. The higher effective tax rate in the second quarter of 2019 was primarily due to repositioning of the investment securities portfolio which reduced municipal securities and the related tax benefit. The effective tax rate for the first half of 2019 was 20.35 percent compared with an effective tax rate of 17.60 percent during the same period last year.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services and Private Banking, and Treasury & Other. Results for the business segments are determined based on the Company’s internal financial management reporting process and organizational structure. Selected financial information is included in Tables 13a and 13b.

Asset Quality

The Company’s asset quality continued to remain strong during the second quarter of 2019. Total non-performing assets were $21.8 million at June 30, 2019 compared with $17.9 million at March 31, 2019 and $15.2 million at June 30, 2018. The increase in non-performing assets during the second quarter of 2019 is due to the addition of commercial mortgage loan exposure to one customer in Guam. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.20 percent at the end of the second quarter of 2019 compared with 0.17 percent at the end of the first quarter of 2019 and 0.15 percent at the end of the second quarter last year.

Accruing loans and leases past due 90 days or more were $6.4 million at June 30, 2019 compared with $6.1 million at March 31, 2019 and $13.3 million at June 30, 2018. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $48.6 million at June 30, 2019, essentially flat with March 31, 2019 and down from $50.2 million at June 30, 2018. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loan and lease charge-offs during the second quarter of 2019 were $2.4 million or 0.09 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $5.1 million during the quarter were partially offset by recoveries of $2.8 million. Net charge-offs during the first quarter of 2019 were $3.7 million or 0.14 percent annualized of total average loans and leases outstanding and comprised of $6.8 million in charge-offs and recoveries of $3.2 million. Net charge-offs during the second quarter of 2018 were $3.3 million or 0.13 percent annualized of total average loans and leases outstanding and comprised of $5.7 million in charge-offs and recoveries of $2.4 million. Net charge-offs during the first half of 2019 were $6.0 million or 0.12 percent annualized of total average loans and leases outstanding compared with net charge-offs of $6.8 million or 0.14 percent annualized of total average loans and leases outstanding for the first half of 2018.

The allowance for loan and lease losses was $107.7 million at June 30, 2019 compared with $106.0 million at March 31, 2019 and $108.2 million at June 30, 2018. The ratio of the allowance for loan and lease losses to total loans and leases was 1.00 percent at June 30, 2019, a decrease of 1 basis point from the previous quarter and 8 basis points from the second quarter last year. The reserve for unfunded commitments of $6.8 million at June 30, 2019 was unchanged from March 31, 2019 and June 30, 2018. 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 were $17.7 billion at June 30, 2019, up from $17.4 billion at March 31, 2019 and $17.1 billion at June 30, 2018. Average total assets were $17.5 billion during the second quarter of 2019 compared with $17.2 billion during the previous quarter and $16.9 billion during the second quarter last year.

The investment securities portfolio was $5.6 billion at June 30, 2019, up from $5.5 billion at March 31, 2019 and down from $5.7 billion at June 30, 2018. The portfolio remains largely comprised of securities issued by U.S. government agencies and includes $3.0 billion in securities held to maturity and $2.6 billion in securities available for sale. The securities portfolio at March 31, 2019 included $3.7 billion in securities held to maturity and $1.9 billion in securities available for sale compared with $3.6 billion in securities held to maturity and $2.1 billion in securities available for sale at June 30, 2018.

Total loans and leases were $10.8 billion at June 30, 2019, up from $10.5 billion at March 31, 2019, and $10.1 billion at June 30, 2018. Average total loans and leases increased to $10.6 billion during the second quarter of 2019 compared with $10.5 billion during the previous quarter and $10.0 billion during the same quarter last year. The commercial loan portfolio was $4.1 billion at June 30, 2019, up $102.1 million or 2.6 percent from commercial loans of $4.0 billion at March 31, 2019, and up $286.0 million or 7.5 percent from commercial loans of $3.8 billion at June 30, 2018. The consumer loan portfolio increased to $6.7 billion at June 30, 2019, up $108.5 million or 1.7 percent from consumer loans of $6.5 billion at March 31, 2019 and up $419.8 million or 6.7 percent from consumer loans of $6.2 billion at June 30, 2018. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $15.5 billion at June 30, 2019, up from $15.3 billion at March 31, 2019 and $14.9 billion at June 30, 2018. Average total deposits were $15.2 billion during the second quarter of 2019, up from $15.0 billion during the previous quarter and $14.7 billion during the same quarter last year. Consumer deposits of $7.9 billion at June 30, 2019 were down $64.5 million or 0.8 percent from consumer deposits at March 31, 2019 and up $207.8 million or 2.7 percent from consumer deposits of $7.7 billion at June 30, 2018. Commercial deposits increased to $6.2 billion at June 30, 2019, up $16.9 million or 0.3 percent from commercial deposits of $6.2 billion at March 31, 2019 and up $257.6 million or 4.3 percent from commercial deposits of $5.9 billion at June 30, 2018. Other deposits, including public funds, were $1.4 billion at June 30, 2019, up $269.1 million from other deposits of $1.2 billion at March 31, 2019 and up $80.0 million from other deposits of $1.3 billion at June 30, 2018. The increase in other deposits from the previous quarter was largely due to seasonal public demand deposits. Deposit balances are summarized in Tables 7a, 7b, and 10.

During the second quarter of 2019, the Company repurchased 433.4 thousand shares of common stock at a total cost of $34.9 million under its share repurchase program at an average cost was $80.49 per share. From the beginning of the share repurchase program initiated during July of 2001 through June 30, 2019, the Company has repurchased 56.2 million shares and returned over $2.2 billion to shareholders at an average cost of $39.81 per share. Remaining buyback authority under the share repurchase program was $86.9 million at June 30, 2019. From July 1 through July 19, 2019, the Company repurchased an additional 84.0 thousand shares of common stock at an average cost of $81.75 per share.

Total shareholders’ equity increased to $1.29 billion at June 30, 2019 compared with $1.27 billion at March 31, 2019 and $1.25 billion at June 30, 2018. The Tier 1 Capital Ratio at June 30, 2019 was 12.46 percent compared with 12.75 percent at March 31, 2019 and 13.27 percent at June 30, 2018. The Tier 1 leverage ratio at June 30, 2019 was 7.36 percent compared with 7.46 percent at March 31, 2019 and 7.53 percent at June 30, 2018.

The Company’s Board of Directors declared a quarterly cash dividend of $0.65 per share on the Company’s outstanding shares. The dividend will be payable on September 16, 2019 to shareholders of record at the close of business on August 30, 2019.

Hawaii Economy

General economic conditions in Hawaii continued to remain positive during the second quarter of 2019. The statewide seasonally-adjusted unemployment rate in Hawaii of 2.8 percent in June 2019 continues to remain among the lowest in the United States compared with 3.7 percent nationally. For the first five months of 2019, total visitor arrivals increased 3.8 percent and air seat capacity increased 1.6 percent compared to the same period in 2018. For the first five months of 2019, visitor spending decreased 3.1 percent even with the continued growth in arrivals. The real estate market remained active during the first half of 2019 despite slower sales. For the first six months of 2019, the volume of single-family home sales on Oahu decreased 3.7 percent and median sales prices were down 0.5 percent compared with the same period in 2018. The volume of condominium sales during the first half of 2019 on Oahu declined 8.8 percent with median sales prices 1.4 percent lower than 2018. As of June 30, 2019, months of inventory of single-family homes and condominiums on Oahu remained low at 3.6 months and 3.9 months, respectively. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its second quarter 2019 financial results today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time). The call will be accessible via teleconference and via the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. The toll-free number is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, July 22, 2019. 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 5038719 when prompted. In addition, a replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.

Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers, and governments in Hawaii, American Samoa, 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 HighlightsTable 1

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

(dollars in thousands, except per share amounts)

2019

2019

2018

2019

2018

For the Period:
Operating Results
Net Interest Income

$

124,097

$

124,837

$

120,496

$

248,934

$

239,452

Provision for Credit Losses

4,000

3,000

3,500

7,000

7,625

Total Noninterest Income

45,450

43,679

41,298

89,129

85,333

Total Noninterest Expense

92,725

93,057

90,791

185,782

185,175

Net Income

56,919

58,799

54,718

115,718

108,758

Basic Earnings Per Share

1.40

1.44

1.31

2.84

2.59

Diluted Earnings Per Share

1.40

1.43

1.30

2.82

2.57

Dividends Declared Per Share

0.65

0.62

0.60

1.27

1.12

 
Performance Ratios
Return on Average Assets

1.31

%

1.38

%

1.30

%

1.34

%

1.29

%

Return on Average Shareholders' Equity

17.97

18.81

17.68

18.39

17.71

Efficiency Ratio 1

54.69

55.22

56.12

54.95

57.01

Net Interest Margin 2

3.04

3.12

3.04

3.08

3.02

Dividend Payout Ratio 3

46.43

43.06

45.80

44.72

43.24

Average Shareholders' Equity to Average Assets

7.27

7.35

7.34

7.31

7.31

 
Average Balances
Average Loans and Leases

$

10,631,558

$

10,467,321

$

9,962,860

$

10,549,893

$

9,883,746

Average Assets

17,480,651

17,236,059

16,921,820

17,359,031

16,939,527

Average Deposits

15,162,782

14,971,404

14,709,299

15,067,622

14,714,752

Average Shareholders' Equity

1,270,162

1,267,438

1,241,672

1,268,808

1,238,628

 
Per Share of Common Stock
Book Value

$

31.61

$

30.91

$

29.65

$

31.61

$

29.65

Tangible Book Value

30.83

30.14

28.90

30.83

28.90

Market Value
Closing

82.91

78.87

83.42

82.91

83.42

High

84.53

83.94

88.92

84.53

89.09

Low

75.24

66.54

80.20

66.54

78.40

 

June 30,

March 31,December 31,June 30,

2019

2019

2018

2018

As of Period End:
Balance Sheet Totals
Loans and Leases

$

10,759,129

$

10,548,609

$

10,448,774

$

10,053,323

Total Assets

17,688,845

17,446,413

17,143,974

17,124,162

Total Deposits

15,488,821

15,267,310

15,027,242

14,943,358

Other Debt

110,605

110,624

135,643

235,681

Total Shareholders' Equity

1,285,948

1,269,690

1,268,200

1,247,717

 
Asset Quality
Non-Performing Assets

$

21,782

$

17,925

$

12,930

$

15,157

Allowance for Loan and Lease Losses

107,672

106,023

106,693

108,188

Allowance to Loans and Leases Outstanding

1.00

%

1.01

%

1.02

%

1.08

%

 
Capital Ratios
Common Equity Tier 1 Capital Ratio

12.46

%

12.75

%

13.07

%

13.27

%

Tier 1 Capital Ratio

12.46

12.75

13.07

13.27

Total Capital Ratio

13.57

13.87

14.21

14.47

Tier 1 Leverage Ratio

7.36

7.46

7.60

7.53

Total Shareholders' Equity to Total Assets

7.27

7.28

7.40

7.29

Tangible Common Equity to Tangible Assets 4

7.10

7.11

7.23

7.12

Tangible Common Equity to Risk-Weighted Assets 4

12.17

12.28

12.52

12.68

 
Non-Financial Data
Full-Time Equivalent Employees

2,152

2,112

2,122

2,173

Branches

68

69

69

69

ATMs

383

385

382

385

 
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 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

 

June 30,

March 31,

December 31,

June 30,

 

(dollars in thousands)

2019

2019

2018

2018

 
      
Total Shareholders' Equity 

$

1,285,948

 

$

1,269,690

 

$

1,268,200

 

$

1,247,717

 
Less: Goodwill 

31,517

 

31,517

 

31,517

 

31,517

 
Tangible Common Equity 

$

1,254,431

 

$

1,238,173

 

$

1,236,683

 

$

1,216,200

 
      
Total Assets 

$

17,688,845

 

$

17,446,413

 

$

17,143,974

 

$

17,124,162

 
Less: Goodwill 

31,517

 

31,517

 

31,517

 

31,517

 
Tangible Assets 

$

17,657,328

 

$

17,414,896

 

$

17,112,457

 

$

17,092,645

 
      
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements 

$

10,309,085

 

$

10,079,858

 

$

9,878,904

 

$

9,593,242

 
      
Total Shareholders' Equity to Total Assets 

7.27

%

 

7.28

%

 

7.40

%

 

7.29

%

 
Tangible Common Equity to Tangible Assets (Non-GAAP) 

7.10

%

 

7.11

%

 

7.23

%

 

7.12

%

 
      
Tier 1 Capital Ratio  

12.46

%

 

12.75

%

 

13.07

%

 

13.27

%

 
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 

12.17

%

 

12.28

%

 

12.52

%

 

12.68

%

 
      
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income Table 3
Three Months EndedSix Months Ended

June 30,

March 31,

June 30,

June 30,

(dollars in thousands, except per share amounts)

2019

2019

2018

2019

2018

Interest Income
Interest and Fees on Loans and Leases

$

110,401

$

108,511

$

101,311

$

218,912

$

198,945

Income on Investment Securities
Available-for-Sale

15,072

13,432

12,380

28,504

24,521

Held-to-Maturity

22,149

21,921

20,711

44,070

42,007

Deposits

9

15

(4

)

24

14

Funds Sold

730

1,444

846

2,174

1,603

Other

210

319

341

529

641

Total Interest Income

148,571

145,642

135,585

294,213

267,731

Interest Expense
Deposits

18,628

15,284

9,459

33,912

17,040

Securities Sold Under Agreements to Repurchase

4,623

4,571

4,617

9,194

9,181

Funds Purchased

512

157

83

669

136

Short-Term Borrowings

1

36

13

37

29

Other Debt

710

757

917

1,467

1,893

Total Interest Expense

24,474

20,805

15,089

45,279

28,279

Net Interest Income

124,097

124,837

120,496

248,934

239,452

Provision for Credit Losses

4,000

3,000

3,500

7,000

7,625

Net Interest Income After Provision for Credit Losses

120,097

121,837

116,996

241,934

231,827

Noninterest Income
Trust and Asset Management

11,385

10,761

11,356

22,146

22,537

Mortgage Banking

3,336

2,287

2,179

5,623

4,324

Service Charges on Deposit Accounts

7,283

7,364

6,865

14,647

13,994

Fees, Exchange, and Other Service Charges

14,252

14,208

14,400

28,460

28,733

Investment Securities Gains (Losses), Net

(776

)

(835

)

(1,702

)

(1,611

)

(2,368

)

Annuity and Insurance

1,806

2,578

1,847

4,384

3,053

Bank-Owned Life Insurance

1,779

1,710

1,796

3,489

3,638

Other

6,385

5,606

4,557

11,991

11,422

Total Noninterest Income

45,450

43,679

41,298

89,129

85,333

Noninterest Expense
Salaries and Benefits

53,511

56,586

52,148

110,097

106,570

Net Occupancy

8,579

7,594

8,588

16,173

17,122

Net Equipment

6,895

6,833

5,845

13,728

11,372

Data Processing

4,727

4,526

4,563

9,253

8,454

Professional Fees

2,177

2,453

2,546

4,630

5,319

FDIC Insurance

1,290

1,269

2,182

2,559

4,339

Other

15,546

13,796

14,919

29,342

31,999

Total Noninterest Expense

92,725

93,057

90,791

185,782

185,175

Income Before Provision for Income Taxes

72,822

72,459

67,503

145,281

131,985

Provision for Income Taxes

15,903

13,660

12,785

29,563

23,227

Net Income

$

56,919

$

58,799

$

54,718

$

115,718

$

108,758

Basic Earnings Per Share

$

1.40

$

1.44

$

1.31

$

2.84

$

2.59

Diluted Earnings Per Share

$

1.40

$

1.43

$

1.30

$

2.82

$

2.57

Dividends Declared Per Share

$

0.65

$

0.62

$

0.60

$

1.27

$

1.12

Basic Weighted Average Shares

40,541,594

40,938,318

41,884,221

40,738,772

41,960,743

Diluted Weighted Average Shares

40,769,767

41,213,453

42,152,200

40,988,001

42,252,900

 
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income  Table 4
 

Three Months Ended

 

Six Months Ended

 

June 30,

 

March 31,

 

June 30,

 

June 30,

(dollars in thousands) 

2019

 

2019

 

2018

 

2019

 

2018

Net Income 

$

56,919

 

$

58,799

 

$

54,718

 

$

115,718

 

$

108,758

Other Comprehensive Income (Loss), Net of Tax:     
Net Unrealized Gains (Losses) on Investment Securities 

16,209

 

6,919

 

(2,974

)

 

23,128

 

(12,095

)

Defined Benefit Plans 

245

 

246

 

216

 

491

 

432

Other Comprehensive Income (Loss) 

16,454

 

7,165

 

(2,758

)

 

23,619

 

(11,663

)

Comprehensive Income 

$

73,373

 

$

65,964

 

$

51,960

 

$

139,337

 

$

97,095

      
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of ConditionTable 5

June 30,

March 31,

December 31,

June 30,

(dollars in thousands)

2019

2019

2018

2018

Assets
Interest-Bearing Deposits in Other Banks

$

3,859

$

3,550

$

3,028

$

3,524

Funds Sold

204,340

243,867

198,860

361,933

Investment Securities
Available-for-Sale

2,649,949

1,859,256

2,007,942

2,092,870

Held-to-Maturity (Fair Value of $2,973,229; $3,637,496; $3,413,994; and $3,500,497)

2,959,611

3,668,811

3,482,092

3,595,891

Loans Held for Sale

22,706

17,909

10,987

16,025

Loans and Leases

10,759,129

10,548,609

10,448,774

10,053,323

Allowance for Loan and Lease Losses

(107,672

)

(106,023

)

(106,693

)

(108,188

)

Net Loans and Leases

10,651,457

10,442,586

10,342,081

9,945,135

Total Earning Assets

16,491,922

16,235,979

16,044,990

16,015,378

Cash and Due from Banks

282,164

293,871

324,081

312,303

Premises and Equipment, Net

169,671

159,344

151,837

142,791

Operating Lease Right-of-Use Assets

103,336

104,166

-

-

Accrued Interest Receivable

49,726

52,820

51,230

50,594

Foreclosed Real Estate

2,737

3,225

1,356

2,926

Mortgage Servicing Rights

24,233

24,149

24,310

24,583

Goodwill

31,517

31,517

31,517

31,517

Bank-Owned Life Insurance

285,295

285,155

283,771

281,018

Other Assets

248,244

256,187

230,882

263,052

Total Assets

$

17,688,845

$

17,446,413

$

17,143,974

$

17,124,162

 
Liabilities
Deposits
Noninterest-Bearing Demand

$

4,528,251

$

4,595,915

$

4,739,596

$

4,729,203

Interest-Bearing Demand

3,033,066

2,961,444

3,002,925

3,111,069

Savings

6,004,528

5,946,881

5,539,199

5,389,763

Time

1,922,976

1,763,070

1,745,522

1,713,323

Total Deposits

15,488,821

15,267,310

15,027,242

14,943,358

Short-Term Borrowings

-

-

199

330

Securities Sold Under Agreements to Repurchase

504,299

504,299

504,296

504,193

Other Debt

110,605

110,624

135,643

235,681

Operating Lease Liabilities

110,483

111,230

-

-

Retirement Benefits Payable

40,047

40,343

40,494

36,730

Accrued Interest Payable

9,454

8,474

8,253

7,395

Taxes Payable and Deferred Taxes

21,337

29,935

19,736

15,136

Other Liabilities

117,851

104,508

139,911

133,622

Total Liabilities

16,402,897

16,176,723

15,875,774

15,876,445

Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2019 - 58,175,367 / 40,687,719; March 31, 2019 - 58,166,535 / 41,078,688; December 31, 2018 - 58,063,689 / 41,499,898; and June 30, 2018 - 58,070,285 / 42,084,066)

579

578

577

577

Capital Surplus

577,346

574,594

571,704

566,436

Accumulated Other Comprehensive Loss

(27,424

)

(43,878

)

(51,043

)

(53,855

)

Retained Earnings

1,704,993

1,674,264

1,641,314

1,581,168

Treasury Stock, at Cost (Shares: June 30, 2019 - 17,487,648; March 31, 2019 - 17,087,847; December 31, 2018 - 16,563,791; and June 30, 2018 - 15,986,219)

(969,546

)

(935,868

)

(894,352

)

(846,609

)

Total Shareholders' Equity

1,285,948

1,269,690

1,268,200

1,247,717

Total Liabilities and Shareholders' Equity

$

17,688,845

$

17,446,413

$

17,143,974

$

17,124,162

 
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 

-

 

-

 

-

 

-

 

115,718

 

-

 

115,718

 
Other Comprehensive Income 

-

 

-

 

-

 

23,619

 

-

 

-

 

23,619

 
Share-Based Compensation 

-

 

-

 

4,438

 

-

 

-

 

-

 

4,438

 
Common Stock Issued under Purchase and Equity       
Compensation Plans 

174,709

 

2

 

1,204

 

-

 

162

 

2,981

 

4,349

 
Common Stock Repurchased 

(986,888

)

 

-

 

-

 

-

 

-

 

(78,175

)

 

(78,175

)

 
Cash Dividends Declared ($1.27 per share) 

-

 

-

 

-

 

-

 

(52,201

)

 

-

 

(52,201

)

 
Balance as of June 30, 2019 

40,687,719

 

$

579

 

$

577,346

 

$

(27,424

)

 

$

1,704,993

 

$

(969,546

)

 

$

1,285,948

 
         
Balance as of December 31, 2017 

42,401,443

 

$

576

 

$

561,161

 

$

(34,715

)

 

$

1,512,218

 

$

(807,372

)

 

$

1,231,868

 
Net Income 

-

 

-

 

-

 

-

 

108,758

 

-

 

108,758

 
Other Comprehensive Loss 

-

 

-

 

-

 

(11,663

)

 

-

 

-

 

(11,663

)

 
Reclassification of the Income Tax Effects of the        
Tax Cuts and Jobs Act from AOCI 

-

 

-

 

-

 

(7,477

)

 

7,477

 

-

 

-

 
Share-Based Compensation 

-

 

-

 

4,055

 

-

 

-

 

-

 

4,055

 
Common Stock Issued under Purchase and Equity       
Compensation Plans 

179,644

 

1

 

1,220

 

-

 

166

 

2,992

 

4,379

 
Common Stock Repurchased 

(497,021

)

 

-

 

-

 

-

 

-

 

(42,229

)

 

(42,229

)

 
Cash Dividends Declared ($1.12 per share) 

-

 

-

 

-

 

-

 

(47,451

)

 

-

 

(47,451

)

 
Balance as of June 30, 2018 

42,084,066

 

$

577

 

$

566,436

 

$

(53,855

)

 

$

1,581,168

 

$

(846,609

)

 

$

1,247,717

 
         
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent BasisTable 7a

Three Months Ended

Three Months Ended

Three Months Ended

June 30, 2019

March 31, 2019

June 30, 2018

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

$

2.9

$

-

1.25

%

$

3.0

$

-

2.05

%

$

2.9

$

-

(0.52

)

%

Funds Sold

123.6

0.8

2.34

241.6

1.5

2.39

185.2

0.8

1.81

Investment Securities
Available-for-Sale
Taxable

2,004.3

14.3

2.87

1,595.8

11.5

2.90

1,564.5

9.2

2.35

Non-Taxable

86.8

0.9

4.15

279.1

2.4

3.45

583.6

4.0

2.78

Held-to-Maturity
Taxable

3,358.0

21.0

2.50

3,373.5

20.5

2.43

3,471.7

19.2

2.22

Non-Taxable

193.0

1.5

3.08

234.1

1.8

3.15

237.1

1.9

3.17

Total Investment Securities

5,642.1

37.7

2.68

5,482.5

36.2

2.65

5,856.9

34.3

2.35

Loans Held for Sale

18.7

0.2

4.05

12.4

0.1

4.35

14.8

0.2

4.44

Loans and Leases 1
Commercial and Industrial

1,385.7

14.9

4.31

1,357.8

15.3

4.57

1,307.6

12.8

3.92

Commercial Mortgage

2,386.3

25.9

4.35

2,310.4

24.9

4.36

2,123.5

21.9

4.13

Construction

125.3

1.7

5.51

150.4

1.9

5.08

183.4

2.2

4.82

Commercial Lease Financing

159.9

1.0

2.49

160.9

0.9

2.28

179.4

1.0

2.24

Residential Mortgage

3,730.4

36.0

3.87

3,680.2

35.5

3.86

3,526.9

33.6

3.81

Home Equity

1,694.9

16.2

3.83

1,690.0

16.1

3.87

1,612.7

15.1

3.76

Automobile

688.5

6.2

3.62

668.2

6.0

3.66

573.6

5.7

3.97

Other 2

460.6

8.4

7.33

449.4

7.9

7.13

455.8

8.9

7.86

Total Loans and Leases

10,631.6

110.3

4.16

10,467.3

108.5

4.18

9,962.9

101.2

4.07

Other

35.0

0.2

2.40

35.5

0.3

3.60

39.8

0.4

3.43

Total Earning Assets 3

16,453.9

149.2

3.63

16,242.3

146.6

3.64

16,062.5

136.9

3.41

Cash and Due from Banks

241.6

240.8

251.0

Other Assets

785.2

753.0

608.3

Total Assets

$

17,480.7

$

17,236.1

$

16,921.8

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

$

2,902.5

1.4

0.19

$

2,939.9

1.5

0.20

$

2,969.8

1.2

0.16

Savings

6,002.0

8.9

0.60

5,760.8

6.7

0.47

5,392.2

3.1

0.23

Time

1,866.6

8.3

1.79

1,703.4

7.1

1.69

1,705.7

5.2

1.21

Total Interest-Bearing Deposits

10,771.1

18.6

0.69

10,404.1

15.3

0.60

10,067.7

9.5

0.38

Short-Term Borrowings

82.3

0.5

2.46

31.1

0.2

2.49

21.0

0.1

1.80

Securities Sold Under Agreements to Repurchase

504.3

4.7

3.63

504.3

4.6

3.63

505.1

4.6

3.62

Other Debt

110.6

0.7

2.57

120.0

0.7

2.55

235.7

0.9

1.56

Total Interest-Bearing Liabilities

11,468.3

24.5

0.85

11,059.5

20.8

0.76

10,829.5

15.1

0.56

Net Interest Income

$

124.7

$

125.8

$

121.8

Interest Rate Spread

2.78

%

2.88

%

2.85

%

Net Interest Margin

3.04

%

3.12

%

3.04

%

Noninterest-Bearing Demand Deposits

4,391.7

4,567.3

4,641.6

Other Liabilities

350.5

341.9

209.0

Shareholders' Equity

1,270.2

1,267.4

1,241.7

Total Liabilities and Shareholders' Equity

$

17,480.7

$

17,236.1

$

16,921.8

 
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 $601,000, $981,000, and $1,298,000 for the three months ended June 30, 2019, March 31, 2019, and June 30, 2018, respectively.
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent BasisTable 7b

Six Months Ended

Six Months Ended

June 30, 2019

June 30, 2018

Average

Income/

Yield/

Average

Income/

Yield/

(dollars in millions)

Balance

Expense

Rate

Balance

Expense

Rate

Earning Assets
Interest-Bearing Deposits in Other Banks

$

2.9

$

-

1.65

%

$

2.9

$

-

0.94

%

Funds Sold

182.3

2.2

2.37

194.9

1.6

1.64

Investment Securities
Available-for-Sale
Taxable

1,801.2

25.9

2.88

1,579.7

18.0

2.29

Non-Taxable

182.5

3.3

3.63

594.1

8.2

2.76

Held-to-Maturity
Taxable

3,365.7

41.5

2.46

3,551.0

39.0

2.20

Non-Taxable

213.4

3.3

3.12

237.6

3.8

3.17

Total Investment Securities

5,562.8

74.0

2.66

5,962.4

69.0

2.32

Loans Held for Sale

15.6

0.3

4.16

14.5

0.3

4.11

Loans and Leases 1
Commercial and Industrial

1,371.8

30.2

4.43

1,294.3

24.6

3.83

Commercial Mortgage

2,348.6

50.7

4.36

2,110.0

42.4

4.06

Construction

137.8

3.6

5.27

186.4

4.3

4.63

Commercial Lease Financing

160.4

1.9

2.38

179.5

2.0

2.22

Residential Mortgage

3,705.4

71.5

3.86

3,502.6

66.9

3.82

Home Equity

1,692.5

32.3

3.85

1,604.1

29.7

3.73

Automobile

678.4

12.3

3.64

557.7

11.3

4.08

Other 2

455.0

16.3

7.23

449.1

17.6

7.88

Total Loans and Leases

10,549.9

218.8

4.17

9,883.7

198.8

4.04

Other

35.2

0.5

3.00

40.3

0.7

3.19

Total Earning Assets 3

16,348.7

295.8

3.63

16,098.7

270.4

3.37

Cash and Due from Banks

241.2

239.9

Other Assets

769.1

600.9

Total Assets

$

17,359.0

$

16,939.5

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

$

2,921.1

2.8

0.20

$

2,974.0

1.9

0.13

Savings

5,882.1

15.7

0.54

5,379.3

5.3

0.20

Time

1,785.4

15.4

1.74

1,709.6

9.8

1.16

Total Interest-Bearing Deposits

10,588.6

33.9

0.65

10,062.9

17.0

0.34

Short-Term Borrowings

56.8

0.7

2.47

20.0

0.2

1.64

Securities Sold Under Agreements to Repurchase

504.3

9.2

3.63

505.2

9.2

3.61

Other Debt

115.3

1.5

2.56

246.3

1.9

1.55

Total Interest-Bearing Liabilities

11,265.0

45.3

0.81

10,834.4

28.3

0.52

Net Interest Income

$

250.5

$

242.1

Interest Rate Spread

2.82

%

2.85

%

Net Interest Margin

3.08

%

3.02

%

Noninterest-Bearing Demand Deposits

4,479.0

4,651.9

Other Liabilities

346.2

214.6

Shareholders' Equity

1,268.8

1,238.6

Total Liabilities and Shareholders' Equity

$

17,359.0

$

16,939.5

 
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 $1,582,000 and $2,642,000 for the six months ended June 30, 2019 and June 30, 2018, respectively.
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8a
Three Months Ended June 30, 2019
Compared to March 31, 2019
(dollars in millions)Volume 1Rate 1Total
Change in Interest Income:
Funds Sold

$

(0.7

)

$

-

$

(0.7

)

Investment Securities
Available-for-Sale
Taxable

2.9

(0.1

)

2.8

Non-Taxable

(1.9

)

0.4

(1.5

)

Held-to-Maturity
Taxable

(0.1

)

0.6

0.5

Non-Taxable

(0.3

)

-

(0.3

)

Total Investment Securities

0.6

0.9

1.5

Loans Held for Sale

0.1

-

0.1

Loans and Leases
Commercial and Industrial

0.4

(0.8

)

(0.4

)

Commercial Mortgage

1.1

(0.1

)

1.0

Construction

(0.3

)

0.1

(0.2

)

Commercial Lease Financing

-

0.1

0.1

Residential Mortgage

0.5

-

0.5

Home Equity

0.1

-

0.1

Automobile

0.2

-

0.2

Other 2

0.2

0.3

0.5

Total Loans and Leases

2.2

(0.4

)

1.8

Other

-

(0.1

)

(0.1

)

Total Change in Interest Income

2.2

0.4

2.6

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

-

(0.1

)

(0.1

)

Savings

0.3

1.9

2.2

Time

0.7

0.5

1.2

Total Interest-Bearing Deposits

1.0

2.3

3.3

Short-Term Borrowings

0.3

-

0.3

Securities Sold Under Agreements to Repurchase

-

0.1

0.1

Total Change in Interest Expense

1.3

2.4

3.7

 
Change in Net Interest Income

$

0.9

$

(2.0

)

$

(1.1

)

 
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8b
Three Months Ended June 30, 2019
Compared to June 30, 2018
(dollars in millions)Volume 1Rate 1Total
Change in Interest Income:
Funds Sold

$

(0.2

)

$

0.2

$

-

Investment Securities
Available-for-Sale
Taxable

2.8

2.3

5.1

Non-Taxable

(4.5

)

1.4

(3.1

)

Held-to-Maturity
Taxable

(0.6

)

2.4

1.8

Non-Taxable

(0.3

)

(0.1

)

(0.4

)

Total Investment Securities

(2.6

)

6.0

3.4

Loans and Leases
Commercial and Industrial

0.8

1.3

2.1

Commercial Mortgage

2.8

1.2

4.0

Construction

(0.8

)

0.3

(0.5

)

Commercial Lease Financing

(0.1

)

0.1

-

Residential Mortgage

1.9

0.5

2.4

Home Equity

0.8

0.3

1.1

Automobile

1.1

(0.6

)

0.5

Other 2

0.1

(0.6

)

(0.5

)

Total Loans and Leases

6.6

2.5

9.1

Other

(0.1

)

(0.1

)

(0.2

)

Total Change in Interest Income

3.7

8.6

12.3

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

-

0.2

0.2

Savings

0.4

5.4

5.8

Time

0.4

2.7

3.1

Total Interest-Bearing Deposits

0.8

8.3

9.1

Short-Term Borrowings

0.4

-

0.4

Securities Sold Under Agreements to Repurchase

-

0.1

0.1

Other Debt

(0.6

)

0.4

(0.2

)

Total Change in Interest Expense

0.6

8.8

9.4

 
Change in Net Interest Income

$

3.1

$

(0.2

)

$

2.9

 
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8c
Six Months Ended June 30, 2019
Compared to June 30, 2018
(dollars in millions)Volume 1Rate 1Total
Change in Interest Income:
Funds Sold

$

(0.1

)

$

0.7

$

0.6

Investment Securities
Available-for-Sale
Taxable

2.8

5.1

7.9

Non-Taxable

(6.9

)

2.0

(4.9

)

Held-to-Maturity
Taxable

(2.1

)

4.6

2.5

Non-Taxable

(0.4

)

(0.1

)

(0.5

)

Total Investment Securities

(6.6

)

11.6

5.0

Loans and Leases
Commercial and Industrial

1.5

4.1

5.6

Commercial Mortgage

5.0

3.3

8.3

Construction

(1.2

)

0.5

(0.7

)

Commercial Lease Financing

(0.2

)

0.1

(0.1

)

Residential Mortgage

3.9

0.7

4.6

Home Equity

1.7

0.9

2.6

Automobile

2.3

(1.3

)

1.0

Other 2

0.2

(1.5

)

(1.3

)

Total Loans and Leases

13.2

6.8

20.0

Other

(0.1

)

(0.1

)

(0.2

)

Total Change in Interest Income

6.4

19.0

25.4

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

-

0.9

0.9

Savings

0.5

9.9

10.4

Time

0.5

5.1

5.6

Total Interest-Bearing Deposits

1.0

15.9

16.9

Short-Term Borrowings

0.4

0.1

0.5

Other Debt

(1.3

)

0.9

(0.4

)

Total Change in Interest Expense

0.1

16.9

17.0

 
Change in Net Interest Income

$

6.3

$

2.1

$

8.4

 
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
Salaries and Benefits Table 9

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

(dollars in thousands)

2019

2019

2018

2019

2018

Salaries

$

32,834

$

32,480

$

33,269

$

65,314

$

65,973

Incentive Compensation

5,464

5,904

4,416

11,368

9,594

Share-Based Compensation

1,994

3,079

2,423

5,073

4,504

Commission Expense

1,704

930

1,272

2,634

2,226

Retirement and Other Benefits

4,580

5,107

4,178

9,687

9,019

Payroll Taxes

2,643

4,247

2,568

6,890

6,740

Medical, Dental, and Life Insurance

3,926

4,465

3,820

8,391

7,281

Separation Expense

366

374

202

740

1,233

Total Salaries and Benefits

$

53,511

$

56,586

$

52,148

$

110,097

$

106,570

 
Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances Table 10

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

2019

2019

2018

2018

2018

Commercial
Commercial and Industrial

$

1,408,729

$

1,331,345

$

1,331,149

$

1,314,609

$

1,282,967

Commercial Mortgage

2,411,289

2,381,213

2,302,356

2,237,020

2,169,357

Construction

119,228

132,775

170,061

176,447

185,350

Lease Financing

163,070

154,919

176,226

172,232

178,598

Total Commercial

4,102,316

4,000,252

3,979,792

3,900,308

3,816,272

Consumer
Residential Mortgage

3,785,006

3,702,553

3,673,796

3,596,627

3,548,444

Home Equity

1,694,577

1,698,666

1,681,442

1,625,208

1,622,314

Automobile

703,523

676,730

658,133

625,086

592,705

Other 1

473,707

470,408

455,611

483,833

473,588

Total Consumer

6,656,813

6,548,357

6,468,982

6,330,754

6,237,051

Total Loans and Leases

$

10,759,129

$

10,548,609

$

10,448,774

$

10,231,062

$

10,053,323

 
 
Deposits
June 30,March 31,December 31,September 30,June 30,
(dollars in thousands)

2019

2019

2018

2018

2018

Consumer

$

7,880,284

$

7,944,793

$

7,726,731

$

7,627,527

$

7,672,435

Commercial

6,178,984

6,162,042

6,098,186

5,967,343

5,921,414

Public and Other

1,429,553

1,160,475

1,202,325

1,248,465

1,349,509

Total Deposits

$

15,488,821

$

15,267,310

$

15,027,242

$

14,843,335

$

14,943,358

 
1 Comprised of other revolving credit, installment, and lease financing.
Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 11
June 30,March 31,December 31,September 30,June 30,
(dollars in thousands)

2019

2019

2018

2018

2018

Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial

$

552

$

393

$

542

$

1,205

$

917

Commercial Mortgage

11,310

5,911

2,040

652

659

Total Commercial

11,862

6,304

2,582

1,857

1,576

Consumer
Residential Mortgage

4,697

5,599

5,321

6,359

6,722

Home Equity

2,486

2,797

3,671

3,673

3,933

Total Consumer

7,183

8,396

8,992

10,032

10,655

Total Non-Accrual Loans and Leases

19,045

14,700

11,574

11,889

12,231

Foreclosed Real Estate

2,737

3,225

1,356

1,909

2,926

Total Non-Performing Assets

$

21,782

$

17,925

$

12,930

$

13,798

$

15,157

 
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial

$

-

$

66

$

10

$

-

$

2

Commercial Mortgage

-

-

-

-

5,680

Total Commercial

-

66

10

-

5,682

Consumer
Residential Mortgage

$

1,859

$

903

$

2,446

$

2,426

$

2,281

Home Equity

2,981

3,381

2,684

3,112

3,016

Automobile

607

734

513

829

674

Other 1

963

1,033

914

1,727

1,660

Total Consumer

6,410

6,051

6,557

8,094

7,631

Total Accruing Loans and Leases Past Due 90 Days or More

$

6,410

$

6,117

$

6,567

$

8,094

$

13,313

Restructured Loans on Accrual Status and Not Past Due 90 Days or More

$

48,563

$

48,571

$

48,731

$

49,462

$

50,212

Total Loans and Leases

$

10,759,129

$

10,548,609

$

10,448,774

$

10,231,062

$

10,053,323

 
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases

0.18

%

0.14

%

0.11

%

0.12

%

0.12

%

 
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate

0.20

%

0.17

%

0.12

%

0.13

%

0.15

%

 
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate

0.29

%

0.16

%

0.06

%

0.05

%

0.04

%

 
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate

0.15

%

0.18

%

0.16

%

0.19

%

0.22

%

 
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

0.26

%

0.23

%

0.19

%

0.21

%

0.28

%

 
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter

$

17,925

$

12,930

$

13,798

$

15,157

$

15,736

Additions

6,186

8,217

4,509

2,030

1,949

Reductions
Payments

(441

)

(989

)

(3,759

)

(415

)

(1,847

)

Return to Accrual Status

(1,344

)

(316

)

(605

)

(1,420

)

(126

)

Sales of Foreclosed Real Estate

(374

)

-

(653

)

(1,301

)

(421

)

Charge-offs/Write-downs

(170

)

(1,917

)

(360

)

(253

)

(134

)

Total Reductions

(2,329

)

(3,222

)

(5,377

)

(3,389

)

(2,528

)

Balance at End of Quarter

$

21,782

$

17,925

$

12,930

$

13,798

$

15,157

 
1 Comprised of other revolving credit, installment, and lease financing.
Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit LossesTable 12
Three Months EndedSix Months Ended

June 30,

March 31,

June 30,

June 30,

(dollars in thousands)

2019

2019

2018

2019

2018

Balance at Beginning of Period

$

112,845

$

113,515

$

114,760

$

113,515

114,168

Loans and Leases Charged-Off
Commercial
Commercial and Industrial

(206

)

(370

)

(485

)

(576

)

(691

)

Commercial Mortgage

-

(1,616

)

-

(1,616

)

-

Consumer
Residential Mortgage

(51

)

(4

)

(3

)

(55

)

(100

)

Home Equity

(145

)

(295

)

(44

)

(440

)

(135

)

Automobile

(1,691

)

(1,753

)

(1,515

)

(3,444

)

(3,769

)

Other 1

(3,036

)

(2,790

)

(3,614

)

(5,826

)

(6,954

)

Total Loans and Leases Charged-Off

(5,129

)

(6,828

)

(5,661

)

(11,957

)

(11,649

)

Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial

401

501

366

902

694

Consumer
Residential Mortgage

95

484

214

579

434

Home Equity

746

588

451

1,334

1,076

Automobile

908

881

738

1,789

1,337

Other 1

628

704

642

1,332

1,325

Total Recoveries on Loans and Leases Previously Charged-Off

2,778

3,158

2,411

5,936

4,866

Net Loans and Leases Charged-Off

(2,351

)

(3,670

)

(3,250

)

(6,021

)

(6,783

)

Provision for Credit Losses

4,000

3,000

3,500

7,000

7,625

Provision for Unfunded Commitments

-

-

-

-

-

Balance at End of Period 2

$

114,494

$

112,845

$

115,010

$

114,494

$

115,010

 
Components
Allowance for Loan and Lease Losses

$

107,672

$

106,023

$

108,188

$

107,672

108,188

Reserve for Unfunded Commitments

6,822

6,822

6,822

6,822

6,822

Total Reserve for Credit Losses

$

114,494

$

112,845

$

115,010

$

114,494

$

115,010

 
Average Loans and Leases Outstanding

$

10,631,558

$

10,467,321

$

9,962,860

$

10,549,893

$

9,883,746

 
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)

0.09

%

0.14

%

0.13

%

0.12

%

0.14

%

Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding

1.00

%

1.01

%

1.08

%

1.00

%

1.08

%

 
1 Comprised of other revolving credit, installment, and lease financing.
2 Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.
Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial InformationTable 13a

Investment

Services and

Retail

Commercial

Private

Treasury

Consolidated

(dollars in thousands)

Banking

Banking

Banking

and Other

Total

Three Months Ended June 30, 2019
Net Interest Income

$

67,217

$

45,703

$

9,846

$

1,331

$

124,097

Provision for Credit Losses

2,527

(175

)

(1

)

1,649

4,000

Net Interest Income After Provision for Credit Losses

64,690

45,878

9,847

(318

)

120,097

Noninterest Income

21,108

6,938

14,859

2,545

45,450

Noninterest Expense

(52,086

)

(21,260

)

(16,457

)

(2,922

)

(92,725

)

Income Before Provision for Income Taxes

33,712

31,556

8,249

(695

)

72,822

Provision for Income Taxes

(8,231

)

(7,945

)

(2,174

)

2,447

(15,903

)

Net Income

$

25,481

$

23,611

$

6,075

$

1,752

$

56,919

Total Assets as of June 30, 2019

$

6,586,854

$

4,089,452

$

337,484

$

6,675,055

$

17,688,845

 
 
Three Months Ended June 30, 2018
Net Interest Income

$

65,683

$

44,010

$

10,526

$

277

$

120,496

Provision for Credit Losses

3,445

(194

)

-

249

3,500

Net Interest Income After Provision for Credit Losses

62,238

44,204

10,526

28

116,996

Noninterest Income

19,598

5,512

14,745

1,443

41,298

Noninterest Expense

(51,939

)

(19,858

)

(16,400

)

(2,594

)

(90,791

)

Income Before Provision for Income Taxes

29,897

29,858

8,871

(1,123

)

67,503

Provision for Income Taxes

(7,473

)

(6,740

)

(2,338

)

3,766

(12,785

)

Net Income

$

22,424

$

23,118

$

6,533

$

2,643

$

54,718

Total Assets as of June 30, 2018

$

6,142,457

$

3,799,535

$

342,464

$

6,839,706

$

17,124,162

 
Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial InformationTable 13b
Investment
Services and
RetailCommercialPrivateTreasuryConsolidated
(dollars in thousands)BankingBankingBankingand OtherTotal
Six Months Ended June 30, 2019
Net Interest Income

$

133,371

$

92,993

$

20,044

$

2,526

$

248,934

Provision for Credit Losses

4,768

1,271

(18

)

979

7,000

Net Interest Income After Provision for Credit Losses

128,603

91,722

20,062

1,547

241,934

Noninterest Income

42,341

13,999

28,104

4,685

89,129

Noninterest Expense

(104,610

)

(42,215

)

(33,360

)

(5,597

)

(185,782

)

Income Before Provision for Income Taxes

66,334

63,506

14,806

635

145,281

Provision for Income Taxes

(16,336

)

(13,947

)

(3,903

)

4,623

(29,563

)

Net Income

$

49,998

$

49,559

$

10,903

$

5,258

$

115,718

Total Assets as of June 30, 2019

$

6,586,854

$

4,089,452

$

337,484

$

6,675,055

$

17,688,845

 
 
Six Months Ended June 30, 2018
Net Interest Income

$

130,080

$

86,908

$

20,413

$

2,051

$

239,452

Provision for Credit Losses

7,188

(345

)

(60

)

842

7,625

Net Interest Income After Provision for Credit Losses

122,892

87,253

20,473

1,209

231,827

Noninterest Income

38,851

11,154

28,415

6,913

85,333

Noninterest Expense

(106,538

)

(40,190

)

(32,607

)

(5,840

)

(185,175

)

Income Before Provision for Income Taxes

55,205

58,217

16,281

2,282

131,985

Provision for Income Taxes

(13,764

)

(13,564

)

(4,292

)

8,393

(23,227

)

Net Income

$

41,441

$

44,653

$

11,989

$

10,675

$

108,758

Total Assets as of June 30, 2018

$

6,142,457

$

3,799,535

$

342,464

$

6,839,706

$

17,124,162

 
Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial DataTable 14
Three Months Ended
June 30,March 31,December 31,September 30,June 30,
(dollars in thousands, except per share amounts)

2019

2019

2018

2018

2018

Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases

$

110,401

$

108,511

$

107,404

$

104,248

$

101,311

Income on Investment Securities
Available-for-Sale

15,072

13,432

13,043

12,588

12,380

Held-to-Maturity

22,149

21,921

21,482

20,821

20,711

Deposits

9

15

10

10

(4

)

Funds Sold

730

1,444

727

1,393

846

Other

210

319

352

364

341

Total Interest Income

148,571

145,642

143,018

139,424

135,585

Interest Expense
Deposits

18,628

15,284

13,172

10,931

9,459

Securities Sold Under Agreements to Repurchase

4,623

4,571

4,671

4,667

4,617

Funds Purchased

512

157

440

33

83

Short-Term Borrowings

1

36

88

28

13

Other Debt

710

757

674

838

917

Total Interest Expense

24,474

20,805

19,045

16,497

15,089

Net Interest Income

124,097

124,837

123,973

122,927

120,496

Provision for Credit Losses

4,000

3,000

2,000

3,800

3,500

Net Interest Income After Provision for Credit Losses

120,097

121,837

121,973

119,127

116,996

Noninterest Income
Trust and Asset Management

11,385

10,761

10,558

10,782

11,356

Mortgage Banking

3,336

2,287

2,148

1,965

2,179

Service Charges on Deposit Accounts

7,283

7,364

7,562

7,255

6,865

Fees, Exchange, and Other Service Charges

14,252

14,208

14,576

14,173

14,400

Investment Securities Gains (Losses), Net

(776

)

(835

)

(841

)

(729

)

(1,702

)

Annuity and Insurance

1,806

2,578

1,409

1,360

1,847

Bank-Owned Life Insurance

1,779

1,710

1,941

1,620

1,796

Other

6,385

5,606

4,755

5,056

4,557

Total Noninterest Income

45,450

43,679

42,108

41,482

41,298

Noninterest Expense
Salaries and Benefits

53,511

56,586

54,856

51,782

52,148

Net Occupancy

8,579

7,594

8,918

8,702

8,588

Net Equipment

6,895

6,833

6,364

6,116

5,845

Data Processing

4,727

4,526

5,151

4,241

4,563

Professional Fees

2,177

2,453

2,467

2,206

2,546

FDIC Insurance

1,290

1,269

1,336

2,057

2,182

Other

15,546

13,796

16,819

15,434

14,919

Total Noninterest Expense

92,725

93,057

95,911

90,538

90,791

Income Before Provision for Income Taxes

72,822

72,459

68,170

70,071

67,503

Provision for Income Taxes

15,903

13,660

14,259

13,138

12,785

Net Income

$

56,919

$

58,799

$

53,911

$

56,933

$

54,718

 
Basic Earnings Per Share

$

1.40

$

1.44

$

1.30

$

1.37

$

1.31

Diluted Earnings Per Share

$

1.40

$

1.43

$

1.30

$

1.36

$

1.30

 
Balance Sheet Totals
Loans and Leases

$

10,759,129

$

10,548,609

$

10,448,774

$

10,231,062

$

10,053,323

Total Assets

17,688,845

17,446,413

17,143,974

16,991,734

17,124,162

Total Deposits

15,488,821

15,267,310

15,027,242

14,843,335

14,943,358

Total Shareholders' Equity

1,285,948

1,269,690

1,268,200

1,253,327

1,247,717

 
Performance Ratios
Return on Average Assets

1.31

%

1.38

%

1.26

%

1.33

%

1.30

%

Return on Average Shareholders' Equity

17.97

18.81

17.05

18.06

17.68

Efficiency Ratio 1

54.69

55.22

57.75

55.07

56.12

Net Interest Margin 2

3.04

3.12

3.10

3.07

3.04

 
1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
2 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends Table 15
Five Months EndedYear Ended
($ in millions; jobs in thousands)May 31, 2019December 31, 2018December 31, 2017
Hawaii Economic Trends
State General Fund Revenues 1

$

3,196.6

6.4

%

$

6,933.1

6.9

%

$

6,485.0

4.3

%

General Excise and Use Tax Revenue 1

$

1,551.9

8.3

%

$

3,426.5

2.3

%

$

3,349.8

4.5

%

Jobs 2

648.9

660.0

664.5

 

June 30,

December 31,

(spot rates)

2019

2018

2017

Unemployment 3
Statewide, seasonally adjusted

2.8

%

2.5

%

2.1

%

 
Oahu

3.1

2.2

1.7

Island of Hawaii

4.1

2.9

2.0

Maui

3.1

2.3

1.8

Kauai

3.1

2.3

1.7

 

June 30,

December 31,

(percentage change, except months of inventory)

2019

2018

2017

2016

Housing Trends (Single Family Oahu) 4
Median Home Price

(0.5

)

%

4.6

%

2.7

%

5.0

%

Home Sales Volume (units)

(3.7

)

%

(7.7

)

%

6.3

%

6.5

%

Months of Inventory

3.6

2.8

2.1

2.5

 
Monthly Visitor Arrivals,Percentage Change
(in thousands)Not Seasonally Adjustedfrom Previous Year
Tourism 5
 
May 31, 2019

841.4

4.6

April 30, 2019

856.3

6.6

March 31, 2019

939.1

3.9

February 28, 2019

782.6

0.5

January 31, 2019

820.6

3.0

December 31, 2018

910.1

3.4

November 30, 2018

782.0

4.3

October 31, 2018

770.4

4.4

September 30, 2018

724.9

3.5

August 31, 2018

845.1

3.2

July 31, 2018

939.4

5.3

June 30, 2018

897.1

7.3

May 31, 2018

804.1

7.0

April 30, 2018

803.0

6.6

March 31, 2018

903.6

12.5

February 28, 2018

778.6

10.3

January 31, 2018

796.5

5.4

December 31, 2017

879.7

6.2

November 30, 2017

749.5

7.5

October 31, 2017

737.6

2.9

September 30, 2017

700.5

4.9

August 31, 2017

818.6

4.8

July 31, 2017

891.9

6.8

June 30, 2017

835.9

4.5

May 31, 2017

751.2

4.5

April 30, 2017

753.0

7.5

March 31, 2017

802.8

2.1

February 28, 2017

706.1

2.5

January 31, 2017

756.0

4.9

1 Source: Hawaii Department of Business, Economic Development & Tourism
2 Source: U. S. Bureau of Labor Statistics
3 Source: Hawaii Department of Labor and Industrial Relations, County jobs data not seasonally adjusted.
4 Source: Honolulu Board of REALTORS
5 Source: Hawaii Tourism Authority

Contacts:

Media Inquiries
Stafford Kiguchi
Telephone: 808-694-8580
Mobile: 808-265-6367
E-mail: Stafford.Kiguchi@boh.com

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 CorteMadera.com & California Media Partners, LLC. All rights reserved.