- Diluted Earnings Per Common Share $1.17
- Net Income $47.9 Million
- Total Deposits Up 1.4% Linked Quarter
- Board of Directors Declares Dividend of $0.70 Per Common
Share
Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted
earnings per common share of $1.17 for the third quarter of 2023,
compared with diluted earnings per common share of $1.12 in the
previous quarter and $1.28 in the same quarter of 2022. Net income
for the third quarter of 2023 was $47.9 million, up 4.0% from the
previous quarter and down 9.3% from the same quarter of 2022. The
return on average common equity for the third quarter of 2023 was
15.38% compared with 14.95% in the previous quarter and 16.98% in
the same quarter of 2022.
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“Bank of Hawai‘i delivered another quarter of solid financial
results,” said Peter Ho, Chairman, President, and CEO. “Total
deposits were up 1.4% linked quarter, and average deposits were up
by 2.4%, driven by growth in core relationship deposits. Our credit
quality remained strong, with non-performing assets of 0.08% at
quarter end and net charge offs of 0.06% in the quarter. NIM
declined modestly by 9 basis points, while our core noninterest
income and operating expense remained steady. Finally, one of our
key priorities this quarter was to support our clients, employees,
and community as we coped with the tragic situation in Maui. Taking
care of our community has always been a fundamental priority and we
will continue to support our community as we build a stronger
Maui.”
Financial Highlights
Net interest income for the third quarter of 2023 was $120.9
million, a decrease of 2.7% from the previous quarter and a
decrease of 14.6% from the same quarter of 2022. The decrease in
net interest income in the third quarter of 2023 was primarily due
to higher funding costs, partially offset by higher earning asset
yields.
Net interest margin was 2.13% in the third quarter of 2023, a
decrease of 9 basis points from the previous quarter and 47 basis
points from the same quarter of 2022. The decrease in net interest
margin was due to higher funding costs and increased liquidity,
partially offset by higher earning asset yields.
The average yield on loans and leases was 4.34% in the third
quarter of 2023, up 15 basis points from the prior quarter and up
85 basis points from the same quarter of 2022. The average yield on
total earning assets was 3.72% in the third quarter of 2023, up 16
basis points from the prior quarter and up 88 basis points from the
same quarter of 2022. The average cost of interest-bearing deposits
was 1.95% in the third quarter of 2023, up 41 basis points from the
prior quarter and up 165 basis points from the same quarter of
2022. The average cost of total deposits, including
noninterest-bearing deposits, was 1.40%, up 32 basis points from
the prior quarter and up 120 basis points from the same quarter of
2022. The changes in yields and rates over the linked quarter and
year over year period reflected the higher rate environment,
including higher benchmark interest rates.
Noninterest income was $50.3 million in the third quarter of
2023, an increase of 16.4% from the previous quarter and an
increase of 64.2% from the same period in 2022. Noninterest income
in the third quarter of 2023 included a $14.7 million gain from the
early termination of private repurchase agreements, partially
offset by a $4.6 million net loss related to investment securities
sales and a negative $0.8 million adjustment related to a change in
the Visa Class B conversion ratio. Noninterest income in the second
quarter of 2023 included $1.5 million from the sale of a low-income
housing tax credit investment. Noninterest income in the third
quarter of 2022 included a one-time pre-tax charge of $6.9 million
related to our agreement to sell assets that terminated certain
leveraged leases and a negative $0.9 million adjustment related to
a change in the Visa Class B conversion ratio. Adjusted for these
items, noninterest income in the third quarter of 2023 was $41.0
million, down 1.6% from adjusted noninterest income in the previous
quarter, and up 6.6% from adjusted noninterest income in the same
period in 2022.
Noninterest expense was $105.6 million in the third quarter of
2023, an increase of 1.5% from the previous quarter and a decrease
of 0.1% from the same quarter of 2022. Noninterest expense in the
third quarter of 2023 included separation expenses of $2.1 million
and extraordinary expenses related to the Maui wildfires of $0.4
million. Noninterest expense in the third quarter of 2022 included
$1.8 million in separation expenses. Adjusted noninterest expense
in the third quarter of 2023 was $103.1 million, down 0.9% from the
previous quarter and down 0.8% from adjusted noninterest expense in
the same period in 2022.
The effective tax rate for the third quarter of 2023 was 24.76%
compared with 24.57% in the previous quarter and 20.68% during the
same quarter of 2022. The increase in the effective tax rate on a
linked quarter basis was mainly due to a decrease in benefits from
tax credit investments from the second quarter. The year over year
increase was primarily due to tax benefits in the third quarter of
2022 related to the aforementioned agreement to sell assets that
terminated certain leveraged leases.
Asset Quality
The Company’s overall asset quality remained strong during the
third quarter of 2023. Provision for credit losses for the third
quarter of 2023 was $2.0 million compared with $2.5 million in the
previous quarter. The Company had no provision for credit loss in
the third quarter of 2022.
Total non-performing assets were $11.5 million at September 30,
2023, flat from June 30, 2023 and down $2.3 million from September
30, 2022. Non-performing assets as a percentage of total loans and
leases and foreclosed real estate were 0.08% at the end of the
quarter, flat from the end of the prior quarter and a decrease of 2
basis points from the same quarter of 2022.
Net loan and lease charge-offs during the third quarter of 2023
were $2.0 million or 6 basis points annualized of total average
loans and leases outstanding. Net loan and lease charge-offs for
the third quarter of 2023 were comprised of charge-offs of $3.6
million partially offset by recoveries of $1.6 million. Compared to
the prior quarter, net loan and lease charge-offs increased by $0.7
million or 2 basis points annualized on total average loans and
leases outstanding. Compared to the same quarter of 2022, net loan
and lease charge-offs increased by $0.9 million or 3 basis points
annualized on total average loans and leases outstanding.
The allowance for credit losses on loans and leases was $145.3
million at September 30, 2023, a decrease of $0.1 million from June
30, 2023 and a decrease of $1.2 million from September 30, 2022.
The ratio of the allowance for credit losses to total loans and
leases outstanding was 1.04% at the end of the quarter, flat from
the end of the prior quarter and down 6 basis points from the same
quarter of 2022.
Balance Sheet
Total assets were $23.5 billion at September 30, 2023, a
decrease of 5.6% from June 30, 2023 and an increase of 1.8% from
September 30, 2022. The decrease from the prior quarter was
primarily due to a decrease in funds sold. The increase from the
same period in 2022 was primarily due to an increase in our loans
and leases.
Total funds sold and cash and due from banks was $0.6 billion at
September 30, 2023, a decrease of $1.0 billion from June 30, 2023
and flat from September 30, 2022. The decrease was primarily due to
termination of $1.8 billion of wholesale funding during the
quarter, including Federal Home Loan Bank advances and private
repurchase agreements.
The investment securities portfolio was $7.5 billion at
September 30, 2023, a decrease of 5.0% from June 30, 2023 and a
decrease of 5.2% from September 30, 2022. These decreases were due
to sales of $159.1 million of investment securities during the
quarter and cashflows from the portfolio not being reinvested into
securities. The investment portfolio remains largely comprised of
securities issued by U.S. government agencies and U.S.
government-sponsored enterprises.
Total loans and leases were $13.9 billion at September 30, 2023,
flat from June 30, 2023 and an increase of 4.5% from September 30,
2022. Total commercial loans were $5.7 billion at September 30,
2023, an increase of 1.2% from the prior quarter and an increase of
7.3% from the same quarter of 2022. The increase from the same
period in 2022 was primarily due to increases in our commercial
mortgage and commercial and industrial portfolios. Total consumer
loans were $8.2 billion as of September 30, 2023, a decrease of
0.8% from the prior quarter and an increase of 2.7% from the same
period in 2022. The increase from the same period in 2022 was
primarily driven by increases in our residential mortgage and home
equity portfolios.
Total deposits were $20.8 billion at September 30, 2023, an
increase of 1.4% from June 30, 2023 and a decrease of 0.4% from
September 30, 2022. Noninterest-bearing deposits made up 27% of
total deposit balances as of September 30, 2023, down from 29% as
of June 30, 2023, and down from 35% as of September 30, 2022.
Average deposits were $20.5 billion for the third quarter of 2023,
up 2.4% from $20.0 billion in the prior quarter, and down 1.8% from
$20.9 billion in the third quarter of 2022. As of September 30,
2023, insured and uninsured but collateralized deposits represent
58% of total deposit balances, down from 61% as of June 30, 2023,
and up from 56% as of September 30, 2022. As of September 30, 2023,
our readily available liquidity of $9.6 billion exceeded total
uninsured and uncollateralized deposits.
Capital and Dividends
The Company’s capital levels increased quarter over quarter and
remain well above regulatory well-capitalized minimums.
The Tier 1 Capital Ratio was 12.53% at September 30, 2023
compared with 12.21% at June 30, 2023 and 12.72% at September 30,
2022. The Tier 1 Leverage Ratio was 7.22% at September 30, 2023, up
1 basis point from 7.21% at June 30, 2023 and down 6 basis points
from 7.28% at September 30, 2022. The increases from the prior
quarter were due to an increase in Tier 1 capital as a result of
retained earnings growth and a decrease in risk-weighted assets.
The decreases from the same period in 2022 were due to an increase
in risk-weighted assets and average total assets, as a result of
loan growth over the period.
No shares of common stock were repurchased under the share
repurchase program in the third quarter of 2023. Total remaining
buyback authority under the share repurchase program was $126.0
million at September 30, 2023.
The Company’s Board of Directors declared a quarterly cash
dividend of $0.70 per share on the Company’s outstanding common
shares. The dividend will be payable on December 14, 2023 to
shareholders of record at the close of business on November 30,
2023.
On October 5, 2023, the Company announced that the Board of
Directors declared the quarterly dividend payment of $10.94 per
share, equivalent to $0.2735 per depositary share, on its preferred
stock. The depositary shares representing the Series A Preferred
Stock are traded on the NYSE under the symbol “BOH.PRA.” The
dividend will be payable on November 1, 2023 to shareholders of
record of the preferred stock as of the close of business on
October 17, 2023.
Conference Call
Information
The Company will review its third quarter financial results
today at 8:00 a.m. Hawai‘i Time (2:00 p.m. Eastern Time). The live
call, including a slide presentation, will be accessible on the
investor relations link of Bank of Hawai‘i Corporation's website,
www.boh.com. The webcast can be accessed via the link:
https://register.vevent.com/register/BId0e4643fbbd64cdfae5f15202d1ffbba.
A replay of the conference call will be available for one year
beginning approximately 11:00 a.m. Hawai‘i Time on Monday, October
23, 2023. The replay will be available on the Company's website,
www.boh.com.
Investor Announcements
Investors and others should note that the Company intends to
announce financial and other information to the Company’s investors
using the Company’s investor relations website at
https://ir.boh.com, social media channels, press releases, SEC
filings and public conference calls and webcasts, all for purposes
of complying with the Company’s disclosure obligations under
Regulation FD. Accordingly, investors should monitor these
channels, as information is updated, and new information is
posted.
Forward-Looking
Statements
This news release, and other statements made by the Company in
connection with it may contain "forward-looking statements" (as
defined in the Private Securities Litigation Reform Act of 1995)
that involve risks and uncertainties that could cause results to be
materially different from expectations. Forecasts of our financial
results and condition, expectations for our operations and business
prospects, and our assumptions used in those forecasts and
expectations are examples of certain of these forward-looking
statements. Do not unduly rely on forward-looking statements.
Actual results might differ significantly from our forecasts and
expectations because of a variety of factors. More information
about these factors is contained in Bank of Hawai‘i Corporation's
Annual Report on Form 10-K for the year ended December 31, 2022 and
its Form 10-Q for the fiscal quarter ended March 31, 2023 and June
30, 2023, which were filed with the U.S. Securities and Exchange
Commission. These forward-looking statements are not guarantees of
future performance and speak only as of the date made, and, except
as required by law, the Company undertakes no obligation to update
or revise any forward-looking statements to reflect subsequent
events, new information or future circumstances.
Bank of Hawai‘i Corporation is an independent regional financial
services company serving businesses, consumers, and governments in
Hawai‘i and the West Pacific. The Company's principal subsidiary,
Bank of Hawai‘i, was founded in 1897. For more information about
Bank of Hawai‘i Corporation, see the Company’s website,
www.boh.com. Bank of Hawai‘i Corporation is a trade name of Bank of
Hawaii Corporation.
Bank of Hawai‘i Corporation and Subsidiaries Financial
Highlights
Table 1
Three Months Ended Nine Months Ended
September 30,
June 30,
September 30,
September 30,
(dollars in thousands, except per share amounts)
2023
2023
2022
2023
2022
For the Period: Operating
Results Net Interest Income
$
120,937
$
124,348
$
141,655
$
381,240
$
399,820
Provision for Credit Losses
2,000
2,500
-
6,500
(8,000
)
Total Noninterest Income
50,334
43,255
30,660
134,326
116,369
Total Noninterest Expense
105,601
104,036
105,749
321,556
312,562
Pre-Provision Net Revenue
65,670
63,567
66,566
194,010
203,627
Net Income
47,903
46,061
52,801
140,806
164,497
Net Income Available to Common Shareholders
45,934
44,092
50,832
134,899
158,590
Basic Earnings Per Common Share
1.17
1.12
1.28
3.44
4.00
Diluted Earnings Per Common Share
1.17
1.12
1.28
3.42
3.98
Dividends Declared Per Common Share
0.70
0.70
0.70
2.10
2.10
Performance Ratios Return on Average Assets
0.78
%
0.77
%
0.91
%
0.78
%
0.96
%
Return on Average Shareholders' Equity
13.92
13.55
15.31
13.91
15.25
Return on Average Common Equity
15.38
14.95
16.98
15.37
16.81
Efficiency Ratio 1
61.66
62.07
61.37
62.37
60.55
Net Interest Margin 2
2.13
2.22
2.60
2.27
2.47
Dividend Payout Ratio 3
59.83
62.50
54.69
61.05
52.50
Average Shareholders' Equity to Average Assets
5.60
5.65
5.91
5.61
6.28
Average Balances Average Loans and Leases
$
13,903,214
$
13,876,754
$
13,126,717
$
13,833,164
$
12,709,045
Average Assets
24,387,421
24,114,443
23,135,820
24,124,360
22,959,246
Average Deposits
20,492,082
20,018,601
20,863,681
20,314,079
20,621,310
Average Shareholders' Equity
1,365,143
1,363,059
1,367,946
1,353,815
1,441,706
Per Share of Common Stock Book Value
$
29.78
$
29.66
$
27.55
$
29.78
$
27.55
Tangible Book Value
28.99
28.87
26.76
28.99
26.76
Market Value Closing
49.69
41.23
76.12
49.69
76.12
High
58.63
52.37
85.45
81.73
92.38
Low
39.02
30.83
70.89
30.83
70.89
September 30, June 30, December 31,
September 30,
2023
2023
2022
2022
As of Period End: Balance
Sheet Totals Loans and Leases
$
13,919,491
$
13,914,889
$
13,646,420
$
13,321,606
Total Assets
23,549,785
24,947,936
23,606,877
23,134,040
Total Deposits
20,802,309
20,508,615
20,615,696
20,888,773
Other Debt
560,217
1,760,243
410,294
10,319
Total Shareholders' Equity
1,363,840
1,358,279
1,316,995
1,282,384
Asset Quality Non-Performing Assets
$
11,519
$
11,477
$
12,647
$
13,868
Allowance for Credit Losses - Loans and Leases
145,263
145,367
144,439
146,436
Allowance to Loans and Leases Outstanding 4
1.04
%
1.04
%
1.06
%
1.10
%
Capital Ratios 5 Common Equity Tier 1 Capital Ratio
11.29
%
11.00
%
10.92
%
11.42
%
Tier 1 Capital Ratio
12.53
12.21
12.15
12.72
Total Capital Ratio
13.56
13.24
13.17
13.82
Tier 1 Leverage Ratio
7.22
7.21
7.37
7.28
Total Shareholders' Equity to Total Assets
5.79
5.44
5.58
5.54
Tangible Common Equity to Tangible Assets 6
4.90
4.60
4.69
4.64
Tangible Common Equity to Risk-Weighted Assets 6
8.10
7.97
7.76
7.97
Non-Financial Data Full-Time Equivalent Employees
1,919
2,025
2,076
2,115
Branches
51
51
51
51
ATMs
320
320
320
316
1
Efficiency ratio is defined as noninterest expense divided by total
revenue (net interest income and total noninterest income).
2
Net interest margin is defined as net interest income, on a
taxable-equivalent basis, as a percentage of average earning
assets.
3
Dividend payout ratio is defined as dividends declared per common
share divided by basic earnings per common share.
4
The numerator comprises the Allowance for Credit Losses - Loans and
Leases.
5
Regulatory capital ratios as of September 30, 2023 are preliminary.
6
Tangible common equity to tangible assets and tangible common
equity to risk-weighted assets are Non-GAAP financial measures.
Tangible common equity is defined by the Company as common
shareholders' equity minus goodwill. See Table 2 "Reconciliation of
Non-GAAP Financial Measures".
Bank of Hawai‘i Corporation and
Subsidiaries Reconciliation of Non-GAAP Financial
Measures Table 2 September 30, June 30,
December 31, September 30, (dollars in thousands)
2023
2023
2022
2022
Total Shareholders' Equity
$
1,363,840
$
1,358,279
$
1,316,995
$
1,282,384
Less: Preferred Stock
180,000
180,000
180,000
180,000
Goodwill
31,517
31,517
31,517
31,517
Tangible Common Equity
$
1,152,323
$
1,146,762
$
1,105,478
$
1,070,867
Total Assets
$
23,549,785
$
24,947,936
$
23,606,877
$
23,134,040
Less: Goodwill
31,517
31,517
31,517
31,517
Tangible Assets
$
23,518,268
$
24,916,419
$
23,575,360
$
23,102,523
Risk-Weighted Assets, determined in accordance with
prescribed regulatory requirements 1
$
14,222,825
$
14,391,943
$
14,238,798
$
13,428,188
Total Shareholders' Equity to Total Assets
5.79
%
5.44
%
5.58
%
5.54
%
Tangible Common Equity to Tangible Assets (Non-GAAP)
4.90
%
4.60
%
4.69
%
4.64
%
Tier 1 Capital Ratio 1
12.53
%
12.21
%
12.15
%
12.72
%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1
8.10
%
7.97
%
7.76
%
7.97
%
1
Regulatory capital ratios as of September 30, 2023 are preliminary.
Bank of Hawai‘i Corporation and Subsidiaries Consolidated
Statements of Income Table 3 Three Months Ended
Nine Months Ended September 30, June 30,
September 30, September 30, (dollars in thousands,
except per share amounts)
2023
2023
2022
2023
2022
Interest Income Interest and Fees on Loans and Leases
$
151,245
$
144,541
$
115,013
$
432,287
$
311,115
Income on Investment Securities Available-for-Sale
23,552
23,301
16,995
70,746
52,079
Held-to-Maturity
22,838
23,375
20,243
70,161
57,782
Deposits
18
18
10
63
19
Funds Sold
12,828
6,395
2,335
22,589
3,181
Other
1,464
2,121
322
4,182
877
Total Interest Income
211,945
199,751
154,918
600,028
425,053
Interest Expense Deposits
72,153
53,779
10,296
163,726
16,184
Securities Sold Under Agreements to Repurchase
4,034
5,436
2,745
14,847
8,311
Funds Purchased
-
184
40
888
99
Short-Term Borrowings
-
2,510
-
5,713
92
Other Debt
14,821
13,494
182
33,614
547
Total Interest Expense
91,008
75,403
13,263
218,788
25,233
Net Interest Income
120,937
124,348
141,655
381,240
399,820
Provision for Credit Losses
2,000
2,500
-
6,500
(8,000
)
Net Interest Income After Provision for Credit Losses
118,937
121,848
141,655
374,740
407,820
Noninterest Income Trust and Asset Management
10,548
11,215
10,418
32,453
33,151
Mortgage Banking
1,059
1,176
1,002
3,239
4,989
Service Charges on Deposit Accounts
7,843
7,587
7,526
23,167
22,107
Fees, Exchange, and Other Service Charges
13,824
14,150
13,863
41,782
41,008
Investment Securities Losses, Net
(6,734
)
(1,310
)
(2,147
)
(9,836
)
(4,987
)
Annuity and Insurance
1,156
1,038
1,034
3,465
2,695
Bank-Owned Life Insurance
2,749
2,876
2,486
8,467
7,493
Other
19,889
6,523
(3,522
)
31,589
9,913
Total Noninterest Income
50,334
43,255
30,660
134,326
116,369
Noninterest Expense Salaries and Benefits
58,825
56,175
59,938
180,088
177,631
Net Occupancy
10,327
9,991
10,186
30,190
29,942
Net Equipment
9,477
10,573
9,736
30,425
28,432
Data Processing
4,706
4,599
4,616
13,888
13,783
Professional Fees
3,846
4,651
3,799
12,380
10,599
FDIC Insurance
3,361
3,173
1,680
9,768
4,772
Other
15,059
14,874
15,794
44,817
47,403
Total Noninterest Expense
105,601
104,036
105,749
321,556
312,562
Income Before Provision for Income Taxes
63,670
61,067
66,566
187,510
211,627
Provision for Income Taxes
15,767
15,006
13,765
46,704
47,130
Net Income
$
47,903
$
46,061
$
52,801
$
140,806
$
164,497
Preferred Stock Dividends
1,969
1,969
1,969
5,908
5,908
Net Income Available to Common Shareholders
$
45,934
$
44,092
$
50,832
$
134,898
$
158,589
Basic Earnings Per Common Share
$
1.17
$
1.12
$
1.28
$
3.44
$
4.00
Diluted Earnings Per Common Share
$
1.17
$
1.12
$
1.28
$
3.42
$
3.98
Dividends Declared Per Common Share
$
0.70
$
0.70
$
0.70
$
2.10
$
2.10
Basic Weighted Average Common Shares
39,274,626
39,241,559
39,567,047
39,264,450
39,670,409
Diluted Weighted Average Common Shares
39,420,531
39,317,521
39,758,209
39,392,433
39,848,795
Bank of Hawai‘i Corporation and Subsidiaries Consolidated
Statements of Comprehensive Income (Loss) Table 4
Three Months Ended Nine Months Ended September
30, June 30, September 30, September 30,
(dollars in thousands)
2023
2023
2022
2023
2022
Net Income
$
47,903
$
46,061
$
52,801
$
140,806
$
164,497
Other Comprehensive Loss, Net of Tax: Net Unrealized Losses on
Investment Securities
(18,264
)
(18,217
)
(79,600
)
(7,205
)
(382,371
)
Defined Benefit Plans
84
84
354
252
1,059
Other Comprehensive Loss
(18,180
)
(18,133
)
(79,246
)
(6,953
)
(381,312
)
Comprehensive Income (Loss)
$
29,723
$
27,928
$
(26,445
)
$
133,853
$
(216,815
)
Bank of Hawai‘i Corporation and Subsidiaries Consolidated
Statements of Condition Table 5 September 30,
June 30, December 31, September 30, (dollars
in thousands)
2023
2023
2022
2022
Assets Interest-Bearing Deposits in Other Banks
$
4,676
$
2,261
$
3,724
$
5,429
Funds Sold
386,086
1,273,109
81,364
402,714
Investment Securities Available-for-Sale
2,387,324
2,666,723
2,844,823
2,424,608
Held-to-Maturity (Fair Value of $4,104,469; $4,411,003; $4,615,393;
and $4,668,074)
5,088,013
5,202,698
5,414,139
5,461,160
Loans Held for Sale
1,450
3,359
1,035
418
Loans and Leases
13,919,491
13,914,889
13,646,420
13,321,606
Allowance for Credit Losses
(145,263
)
(145,367
)
(144,439
)
(146,436
)
Net Loans and Leases
13,774,228
13,769,522
13,501,981
13,175,170
Total Earning Assets
21,641,777
22,917,672
21,847,066
21,469,499
Cash and Due from Banks
261,464
398,072
316,679
247,506
Premises and Equipment, Net
196,094
200,297
206,777
208,251
Operating Lease Right-of-Use Assets
86,896
89,286
92,307
94,613
Accrued Interest Receivable
65,541
64,720
61,002
50,143
Foreclosed Real Estate
1,040
1,040
1,040
1,040
Mortgage Servicing Rights
21,273
21,626
22,619
23,104
Goodwill
31,517
31,517
31,517
31,517
Bank-Owned Life Insurance
458,260
456,889
453,882
451,407
Other Assets
785,923
766,817
573,988
556,960
Total Assets
$
23,549,785
$
24,947,936
$
23,606,877
$
23,134,040
Liabilities Deposits Noninterest-Bearing Demand
$
5,687,442
$
5,968,344
$
6,714,982
$
7,300,157
Interest-Bearing Demand
3,925,469
4,119,166
4,232,567
4,399,625
Savings
8,530,384
7,756,426
7,962,410
7,954,006
Time
2,659,014
2,664,679
1,705,737
1,234,985
Total Deposits
20,802,309
20,508,615
20,615,696
20,888,773
Securities Sold Under Agreements to Repurchase
150,490
725,490
725,490
425,490
Other Debt
560,217
1,760,243
410,294
10,319
Operating Lease Liabilities
95,453
97,768
100,526
102,705
Retirement Benefits Payable
26,074
26,434
26,991
37,053
Accrued Interest Payable
33,434
26,737
9,698
3,405
Taxes Payable
6,965
132
7,104
13,527
Other Liabilities
511,003
444,238
394,083
370,384
Total Liabilities
22,185,945
23,589,657
22,289,882
21,851,656
Shareholders' Equity Preferred Stock ($.01 par value;
authorized 180,000 shares; issued / outstanding: September 30,
2023; June 30, 2023; December 31, 2022; and September 30, 2022 -
180,000)
180,000
180,000
180,000
180,000
Common Stock ($.01 par value; authorized 500,000,000 shares; issued
/ outstanding: September 30, 2023 - 58,767,820 / 39,748,700; June
30, 2023 - 58,771,036 / 39,725,348; December 31, 2022 - 58,733,625
/ 39,835,750; and September 30, 2022 - 58,728,796 / 40,011,473)
583
583
582
582
Capital Surplus
632,425
628,202
620,578
615,985
Accumulated Other Comprehensive Loss
(441,611
)
(423,431
)
(434,658
)
(447,694
)
Retained Earnings
2,108,702
2,091,289
2,055,912
2,024,641
Treasury Stock, at Cost (Shares: September 30, 2023 - 19,019,120;
June 30, 2023 - 19,045,688; December 31, 2022 - 18,897,875; and
September 30, 2022 - 18,717,323)
(1,116,259
)
(1,118,364
)
(1,105,419
)
(1,091,130
)
Total Shareholders' Equity
1,363,840
1,358,279
1,316,995
1,282,384
Total Liabilities and Shareholders' Equity
$
23,549,785
$
24,947,936
$
23,606,877
$
23,134,040
Bank of Hawai‘i Corporation and Subsidiaries Consolidated
Statements of Shareholders' Equity Table 6
Accumulated Preferred Common Other
Shares Preferred Shares Common
Capital Comprehensive Retained Treasury
(dollars in thousands)
Outstanding Stock
Outstanding Stock Surplus Loss
Earnings Stock Total Balance as of December
31, 2022
180,000
$
180,000
39,835,750
$
582
$
620,578
$
(434,658
)
$
2,055,912
$
(1,105,419
)
$
1,316,995
Net Income
-
-
-
-
-
-
140,806
-
140,806
Other Comprehensive Loss
-
-
-
-
-
(6,953
)
-
-
(6,953
)
Share-Based Compensation
-
-
-
-
11,979
-
-
-
11,979
Common Stock Issued under Purchase and Equity Compensation Plans
-
-
121,040
1
(132
)
-
1,716
3,216
4,801
Common Stock Repurchased
-
-
(208,090
)
-
-
-
-
(14,056
)
(14,056
)
Cash Dividends Declared Common Stock ($2.10 per share)
-
-
-
-
-
-
(83,824
)
-
(83,824
)
Cash Dividends Declared Preferred Stock
-
-
-
-
-
-
(5,908
)
-
(5,908
)
Balance as of September 30, 2023
180,000
$
180,000
39,748,700
$
583
$
632,425
$
(441,611
)
$
2,108,702
$
(1,116,259
)
$
1,363,840
Balance as of December 31, 2021
180,000
$
180,000
40,253,193
$
581
$
602,508
$
(66,382
)
$
1,950,375
$
(1,055,471
)
$
1,611,611
Net Income
-
-
-
-
-
-
164,497
-
164,497
Other Comprehensive Loss
-
-
-
-
-
(381,312
)
-
-
(381,312
)
Share-Based Compensation
-
-
-
-
11,947
-
-
-
11,947
Common Stock Issued under Purchase and Equity Compensation Plans
-
-
247,966
1
1,530
-
256
3,889
5,676
Common Stock Repurchased
-
-
(489,686
)
-
-
-
-
(39,548
)
(39,548
)
Cash Dividends Declared Common Stock ($2.10 per share)
-
-
-
-
-
-
(84,579
)
-
(84,579
)
Cash Dividends Declared Preferred Stock
-
-
-
-
-
-
(5,908
)
-
(5,908
)
Balance as of September 30, 2022
180,000
$
180,000
40,011,473
$
582
$
615,985
$
(447,694
)
$
2,024,641
$
(1,091,130
)
$
1,282,384
Bank of Hawai‘i Corporation and Subsidiaries Average
Balances and Interest Rates - Taxable-Equivalent Basis 1
Table 7a Three Months Ended Three Months Ended
Three Months Ended September 30, 2023 June 30,
2023 September 30, 2022 Average Income /
Yield / Average Income / Yield /
Average Income / Yield / (dollars in millions)
Balance Expense 2 Rate Balance
Expense 2 Rate Balance Expense 2
Rate Earning Assets Interest-Bearing Deposits in
Other Banks
$
2.9
$
-
2.40
%
$
5.1
$
-
1.48
%
$
2.9
$
-
1.32
%
Funds Sold
944.8
12.8
5.31
500.1
6.4
5.06
411.8
2.3
2.22
Investment Securities Available-for-Sale Taxable
2,605.4
23.5
3.60
2,741.1
23.2
3.39
3,481.9
17.0
1.95
Non-Taxable
3.5
-
3.21
9.6
0.1
4.40
2.5
-
1.56
Held-to-Maturity Taxable
5,118.6
22.7
1.77
5,231.3
23.2
1.78
4,645.7
20.1
1.73
Non-Taxable
35.0
0.2
2.10
35.2
0.2
2.10
35.6
0.2
2.10
Total Investment Securities
7,762.5
46.4
2.39
8,017.2
46.7
2.33
8,165.7
37.3
1.82
Loans Held for Sale
3.8
0.1
6.28
2.7
-
5.50
4.3
0.1
4.46
Loans and Leases 3 Commercial and Industrial
1,515.0
18.9
4.96
1,456.1
17.5
4.82
1,353.8
12.5
3.66
Paycheck Protection Program
13.1
-
1.32
14.5
-
1.30
28.0
0.2
3.02
Commercial Mortgage
3,792.6
51.1
5.35
3,814.9
49.3
5.19
3,530.9
33.3
3.74
Construction
241.9
3.7
6.09
246.8
3.5
5.70
233.0
2.8
4.81
Commercial Lease Financing
62.6
0.3
1.84
65.4
0.3
1.67
89.1
0.4
1.58
Residential Mortgage
4,715.3
42.8
3.62
4,704.0
41.2
3.50
4,526.6
37.4
3.30
Home Equity
2,283.5
20.1
3.49
2,272.3
19.0
3.35
2,144.8
16.4
3.04
Automobile
868.0
8.2
3.75
879.3
7.7
3.53
795.5
6.4
3.19
Other 4
411.2
6.5
6.24
423.5
6.4
6.04
425.0
5.9
5.48
Total Loans and Leases
13,903.2
151.6
4.34
13,876.8
144.9
4.19
13,126.7
115.3
3.49
Other
91.6
1.5
6.40
94.8
2.2
8.94
36.9
0.3
3.49
Total Earning Assets
22,708.8
212.4
3.72
22,496.7
200.2
3.56
21,748.3
155.3
2.84
Cash and Due from Banks
289.8
316.6
233.5
Other Assets
1,388.8
1,301.1
1,154.0
Total Assets
$
24,387.4
$
24,114.4
$
23,135.8
Interest-Bearing Liabilities Interest-Bearing
Deposits Demand
$
3,929.7
6.6
0.67
$
4,037.4
7.5
0.75
$
4,286.0
1.4
0.13
Savings
7,952.6
39.1
1.95
7,667.6
26.6
1.39
7,962.0
6.6
0.33
Time
2,767.8
26.5
3.79
2,296.1
19.7
3.44
1,146.9
2.3
0.79
Total Interest-Bearing Deposits
14,650.1
72.2
1.95
14,001.1
53.8
1.54
13,394.9
10.3
0.30
Funds Purchased
-
-
-
14.6
0.2
5.00
4.9
0.1
3.17
Short-Term Borrowings
-
-
-
195.2
2.5
5.09
-
-
-
Securities Sold Under Agreements to Repurchase
528.5
4.0
2.99
725.5
5.4
2.96
425.5
2.7
2.52
Other Debt
1,365.7
14.8
4.31
1,255.8
13.5
4.31
10.3
0.2
7.05
Total Interest-Bearing Liabilities
16,544.3
91.0
2.18
16,192.2
75.4
1.87
13,835.6
13.3
0.38
Net Interest Income
$
121.4
$
124.8
$
142.0
Interest Rate Spread
1.54
%
1.69
%
2.46
%
Net Interest Margin
2.13
%
2.22
%
2.60
%
Noninterest-Bearing Demand Deposits
5,842.0
6,017.5
7,468.8
Other Liabilities
636.0
541.6
463.5
Shareholders' Equity
1,365.1
1,363.1
1,367.9
Total Liabilities and Shareholders' Equity
$
24,387.4
$
24,114.4
$
23,135.8
1
Due to rounding, the amounts presented in this table may not tie to
other amounts presented elsewhere in this report.
2
Interest income includes taxable-equivalent basis adjustments,
based upon a federal statutory tax rate of 21%, of $437,000,
$471,000, and $343,000 for the three months ended September 30,
2023, June 30, 2023, and September 30, 2022, respectively.
3
Non-performing loans and leases are included in the respective
average loan and lease balances. Income, if any, on such loans and
leases is recognized on a cash basis.
4
Comprised of other consumer revolving credit, installment, and
consumer lease financing.
Bank of Hawai‘i Corporation and
Subsidiaries Average Balances and Interest Rates -
Taxable-Equivalent Basis 1 Table 7b Nine Months
Ended Nine Months Ended September 30, 2023
September 30, 2022 Average Income / Yield
/ Average Income / Yield / (dollars in
millions)
Balance Expense 2 Rate
Balance Expense 2 Rate Earning Assets
Interest-Bearing Deposits in Other Banks
$
3.2
$
0.1
2.60
%
$
3.3
$
-
0.76
%
Funds Sold
582.7
22.6
5.11
308.6
3.2
1.36
Investment Securities Available-for-Sale Taxable
2,721.5
70.6
3.46
3,998.2
52.0
1.74
Non-Taxable
7.6
0.2
4.22
2.8
-
1.84
Held-to-Maturity Taxable
5,227.8
69.7
1.78
4,530.4
57.4
1.69
Non-Taxable
35.2
0.6
2.10
35.7
0.6
2.10
Total Investment Securities
7,992.1
141.1
2.36
8,567.1
110.0
1.71
Loans Held for Sale
2.7
0.1
5.82
8.1
0.2
3.43
Loans and Leases 3 Commercial and Industrial
1,461.2
52.7
4.82
1,339.0
31.4
3.13
Paycheck Protection Program
14.8
0.2
1.70
51.7
2.5
6.59
Commercial Mortgage
3,781.7
145.6
5.15
3,350.3
81.3
3.25
Construction
256.2
11.1
5.81
227.7
7.3
4.30
Commercial Lease Financing
64.9
0.5
1.11
94.0
1.0
1.49
Residential Mortgage
4,695.4
123.8
3.51
4,439.1
108.6
3.26
Home Equity
2,265.2
57.3
3.38
2,026.5
44.1
2.91
Automobile
873.0
23.2
3.55
764.2
18.4
3.21
Other 4
420.8
19.0
6.04
416.5
17.0
5.44
Total Loans and Leases
13,833.2
433.4
4.19
12,709.0
311.6
3.27
Other
84.6
4.1
6.59
37.2
0.9
3.14
Total Earning Assets
22,498.5
601.4
3.57
21,633.3
425.9
2.63
Cash and Due from Banks
308.4
235.0
Other Assets
1,317.5
1,090.9
Total Assets
$
24,124.4
$
22,959.2
Interest-Bearing Liabilities Interest-Bearing
Deposits Demand
$
4,060.0
19.3
0.64
$
4,459.9
2.6
0.08
Savings
7,876.1
86.3
1.46
7,733.3
9.5
0.16
Time
2,288.2
58.1
3.40
1,023.6
4.1
0.53
Total Interest-Bearing Deposits
14,224.3
163.7
1.54
13,216.8
16.2
0.16
Funds Purchased
24.8
0.9
4.72
12.4
0.1
1.05
Short-Term Borrowings
152.4
5.7
4.94
11.5
0.1
1.06
Securities Sold Under Agreements to Repurchase
659.1
14.8
2.97
441.1
8.3
2.48
Other Debt
1,043.6
33.7
4.31
10.3
0.6
7.05
Total Interest-Bearing Liabilities
16,104.2
218.8
1.81
13,692.1
25.3
0.25
Net Interest Income
$
382.6
$
400.6
Interest Rate Spread
1.76
%
2.38
%
Net Interest Margin
2.27
%
2.47
%
Noninterest-Bearing Demand Deposits
6,089.8
7,404.5
Other Liabilities
576.6
420.9
Shareholders' Equity
1,353.8
1,441.7
Total Liabilities and Shareholders' Equity
$
24,124.4
$
22,959.2
1
Due to rounding, the amounts presented in this table may not tie to
other amounts presented elsewhere in this report.
2
Interest income includes taxable-equivalent basis adjustments,
based upon a federal statutory tax rate of 21%, of $1,403,000 and
$818,000 for the nine months ended September 30, 2023 and September
30, 2022, respectively.
3
Non-performing loans and leases are included in the respective
average loan and lease balances. Income, if any, on such loans and
leases is recognized on a cash basis.
4
Comprised of other consumer revolving credit, installment, and
consumer lease financing.
Bank of Hawai‘i Corporation and
Subsidiaries Analysis of Change in Net Interest Income -
Taxable-Equivalent Basis Table 8a Three Months Ended
September 30, 2023 Compared to June 30, 2023 (dollars in
millions)
Volume 1 Rate 1 Total Change in
Interest Income: Funds Sold
$
6.1
$
0.3
$
6.4
Investment Securities Available-for-Sale Taxable
(1.1
)
1.4
0.3
Non-Taxable
(0.1
)
-
(0.1
)
Held-to-Maturity Taxable
(0.5
)
-
(0.5
)
Total Investment Securities
(1.7
)
1.4
(0.3
)
Loans Held for Sale
0.1
-
0.1
Loans and Leases Commercial and Industrial
0.8
0.6
1.4
Commercial Mortgage
(0.2
)
2.0
1.8
Construction
(0.1
)
0.3
0.2
Residential Mortgage
0.2
1.4
1.6
Home Equity
0.1
1.0
1.1
Automobile
(0.1
)
0.6
0.5
Other 2
(0.2
)
0.3
0.1
Total Loans and Leases
0.5
6.2
6.7
Other
(0.1
)
(0.6
)
(0.7
)
Total Change in Interest Income
4.9
7.3
12.2
Change in Interest Expense: Interest-Bearing Deposits Demand
(0.2
)
(0.7
)
(0.9
)
Savings
1.1
11.4
12.5
Time
4.5
2.3
6.8
Total Interest-Bearing Deposits
5.4
13.0
18.4
Funds Purchased
(0.2
)
-
(0.2
)
Short-Term Borrowings
(2.5
)
-
(2.5
)
Securities Sold Under Agreements to Repurchase
(1.4
)
-
(1.4
)
Other Debt
1.3
-
1.3
Total Change in Interest Expense
2.6
13.0
15.6
Change in Net Interest Income
$
2.3
$
(5.7
)
$
(3.4
)
1
The change in interest income and expense not solely due to changes
in volume or rate has been allocated on a pro-rata basis to the
volume and rate columns.
2
Comprised of other consumer revolving credit, installment, and
consumer lease financing.
Bank of Hawai‘i Corporation and
Subsidiaries Analysis of Change in Net Interest Income -
Taxable-Equivalent Basis Table 8b Three Months Ended
September 30, 2023 Compared to September 30, 2022
(dollars in millions)
Volume 1 Rate 1 Total
Change in Interest Income: Funds Sold
$
5.1
$
5.4
$
10.5
Investment Securities Available-for-Sale Taxable
(5.1
)
11.6
6.5
Held-to-Maturity Taxable
2.1
0.5
2.6
Total Investment Securities
(3.0
)
12.1
9.1
Loans and Leases Commercial and Industrial
1.6
4.8
6.4
Paycheck Protection Program
(0.1
)
(0.1
)
(0.2
)
Commercial Mortgage
2.6
15.2
17.8
Construction
0.1
0.8
0.9
Commercial Lease Financing
(0.2
)
0.1
(0.1
)
Residential Mortgage
1.7
3.7
5.4
Home Equity
1.2
2.5
3.7
Automobile
0.6
1.2
1.8
Other 2
(0.2
)
0.8
0.6
Total Loans and Leases
7.3
29.0
36.3
Other
0.7
0.5
1.2
Total Change in Interest Income
10.1
47.0
57.1
Change in Interest Expense: Interest-Bearing Deposits Demand
(0.1
)
5.3
5.2
Savings
-
32.5
32.5
Time
6.6
17.6
24.2
Total Interest-Bearing Deposits
6.5
55.4
61.9
Funds Purchased
(0.1
)
-
(0.1
)
Securities Sold Under Agreements to Repurchase
0.7
0.6
1.3
Other Debt
14.7
(0.1
)
14.6
Total Change in Interest Expense
21.8
55.9
77.7
Change in Net Interest Income
$
(11.7
)
$
(8.9
)
$
(20.6
)
1
The change in interest income and expense not solely due to changes
in volume or rate has been allocated on a pro-rata basis to the
volume and rate columns.
2
Comprised of other consumer revolving credit, installment, and
consumer lease financing.
Bank of Hawai‘i Corporation and
Subsidiaries Analysis of Change in Net Interest Income -
Taxable-Equivalent Basis Table 8c Nine Months Ended
September 30, 2023 Compared to September 30, 2022
(dollars in millions)
Volume 1 Rate 1 Total
Change in Interest Income: Interest-Bearing Deposits in Other Banks
$
0.1
$
-
$
0.1
Funds Sold
4.7
14.7
19.4
Investment Securities Available-for-Sale Taxable
(20.6
)
39.2
18.6
Non-Taxable
0.1
0.1
0.2
Held-to-Maturity Taxable
9.2
3.1
12.3
Total Investment Securities
(11.3
)
42.4
31.1
Loans Held for Sale
(0.2
)
0.1
(0.1
)
Loans and Leases Commercial and Industrial
3.1
18.2
21.3
Paycheck Protection Program
(1.2
)
(1.1
)
(2.3
)
Commercial Mortgage
11.6
52.7
64.3
Construction
1.0
2.8
3.8
Commercial Lease Financing
(0.4
)
(0.1
)
(0.5
)
Residential Mortgage
6.5
8.7
15.2
Home Equity
5.6
7.6
13.2
Automobile
2.7
2.1
4.8
Other 2
0.1
1.9
2.0
Total Loans and Leases
29.0
92.8
121.8
Other
1.7
1.5
3.2
Total Change in Interest Income
24.0
151.5
175.5
Change in Interest Expense: Interest-Bearing Deposits Demand
(0.3
)
17.0
16.7
Savings
0.2
76.6
76.8
Time
10.0
44.0
54.0
Total Interest-Bearing Deposits
9.9
137.6
147.5
Funds Purchased
0.2
0.6
0.8
Short-Term Borrowings
4.3
1.3
5.6
Securities Sold Under Agreements to Repurchase
4.7
1.8
6.5
Other Debt
33.4
(0.3
)
33.1
Total Change in Interest Expense
52.5
141.0
193.5
Change in Net Interest Income
$
(28.5
)
$
10.5
$
(18.0
)
1
The change in interest income and expense not solely due to changes
in volume or rate has been allocated on a pro-rata basis to the
volume and rate columns.
2
Comprised of other consumer revolving credit, installment, and
consumer lease financing.
Bank of Hawai‘i Corporation and
Subsidiaries Salaries and Benefits Table 9
Three Months Ended Nine Months Ended September
30, June 30, September 30, September 30,
(dollars in thousands)
2023
2023
2022
2023
2022
Salaries
$
39,426
$
37,962
$
37,792
$
116,005
$
109,445
Incentive Compensation
2,956
2,984
5,885
9,937
18,069
Share-Based Compensation
4,072
4,096
3,558
11,327
11,319
Commission Expense
676
775
1,005
2,098
3,878
Retirement and Other Benefits
3,809
3,489
4,448
13,186
13,177
Payroll Taxes
2,921
3,310
2,826
12,079
10,804
Medical, Dental, and Life Insurance
2,835
3,568
2,605
10,267
8,430
Separation Expense
2,130
(9
)
1,819
5,189
2,509
Total Salaries and Benefits
$
58,825
$
56,175
$
59,938
$
180,088
$
177,631
Bank of Hawai‘i Corporation and Subsidiaries Loan and
Lease Portfolio Balances Table 10 September 30,
June 30, March 31, December 31, September
30, (dollars in thousands)
2023
2023
2023
2022
2022
Commercial Commercial and Industrial
$
1,569,572
$
1,502,676
$
1,425,916
$
1,389,066
$
1,368,966
Paycheck Protection Program
12,529
13,789
15,175
19,579
22,955
Commercial Mortgage
3,784,339
3,796,769
3,826,283
3,725,542
3,591,943
Construction
251,507
236,428
232,903
260,825
236,498
Lease Financing
61,522
62,779
65,611
69,491
73,989
Total Commercial
5,679,469
5,612,441
5,565,888
5,464,503
5,294,351
Consumer Residential Mortgage
4,699,140
4,721,976
4,691,298
4,653,072
4,585,723
Home Equity
2,285,974
2,278,105
2,260,001
2,225,950
2,185,484
Automobile
856,113
878,767
877,979
870,396
820,640
Other 1
398,795
423,600
429,356
432,499
435,408
Total Consumer
8,240,022
8,302,448
8,258,634
8,181,917
8,027,255
Total Loans and Leases
$
13,919,491
$
13,914,889
$
13,824,522
$
13,646,420
$
13,321,606
1 Comprised of other revolving credit, installment, and lease
financing.
Deposits September 30, June
30, March 31, December 31, September 30,
(dollars in thousands)
2023
2023
2023
2022
2022
Consumer
$
10,036,261
$
10,018,931
$
10,158,833
$
10,304,335
$
10,507,946
Commercial
8,564,536
8,019,971
8,594,441
8,569,670
8,841,781
Public and Other
2,201,512
2,469,713
1,738,026
1,741,691
1,539,046
Total Deposits
$
20,802,309
$
20,508,615
$
20,491,300
$
20,615,696
$
20,888,773
Average Deposits Three Months Ended
September 30, June 30, March 31, December
31, September 30, (dollars in thousands)
2023
2023
2023
2022
2022
Consumer
$
9,963,690
$
9,977,239
$
10,178,988
$
10,295,563
$
10,485,895
Commercial
8,288,891
8,138,358
8,611,960
8,588,198
9,002,432
Public and Other
2,239,501
1,903,004
1,639,934
1,457,566
1,375,354
Total Deposits
$
20,492,082
$
20,018,601
$
20,430,882
$
20,341,327
$
20,863,681
Bank of Hawai‘i Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90
Days or More Table 11 September 30, June
30, March 31, December 31, September 30,
(dollars in thousands)
2023
2023
2023
2022
2022
Non-Performing Assets Non-Accrual Loans and Leases
Commercial Commercial and Industrial
$
43
$
17
$
31
$
37
$
49
Commercial Mortgage
2,996
3,107
3,216
3,309
3,396
Total Commercial
3,039
3,124
3,247
3,346
3,445
Consumer Residential Mortgage
3,706
3,504
4,199
4,239
4,945
Home Equity
3,734
3,809
3,638
4,022
4,438
Total Consumer
7,440
7,313
7,837
8,261
9,383
Total Non-Accrual Loans and Leases
10,479
10,437
11,084
11,607
12,828
Foreclosed Real Estate
1,040
1,040
1,040
1,040
1,040
Total Non-Performing Assets
$
11,519
$
11,477
$
12,124
$
12,647
$
13,868
Accruing Loans and Leases Past Due 90 Days or More
Consumer Residential Mortgage
$
3,519
$
3,560
$
4,566
$
2,429
$
3,279
Home Equity
2,172
2,022
1,723
1,673
1,061
Automobile
393
577
598
589
467
Other 1
643
633
632
683
513
Total Consumer
6,727
6,792
7,519
5,374
5,320
Total Accruing Loans and Leases Past Due 90 Days or More
$
6,727
$
6,792
$
7,519
$
5,374
$
5,320
Total Loans and Leases
$
13,919,491
$
13,914,889
$
13,824,522
$
13,646,420
$
13,321,606
Ratio of Non-Accrual Loans and Leases to Total Loans and
Leases
0.08
%
0.08
%
0.08
%
0.09
%
0.10
%
Ratio of Non-Performing Assets to Total Loans and Leases and
Foreclosed Real Estate
0.08
%
0.08
%
0.09
%
0.09
%
0.10
%
Ratio of Non-Performing Assets to Total Assets
0.05
%
0.04
%
0.05
%
0.05
%
0.06
%
Ratio of Commercial Non-Performing Assets to Total
Commercial Loans and Leases and Commercial Foreclosed Real Estate
0.05
%
0.06
%
0.06
%
0.06
%
0.07
%
Ratio of Consumer Non-Performing Assets to Total Consumer
Loans and Leases and Consumer Foreclosed Real Estate
0.10
%
0.10
%
0.11
%
0.11
%
0.13
%
Ratio of Non-Performing Assets and Accruing Loans and Leases
Past Due 90 Days or More to Total Loans and Leases and Foreclosed
Real Estate
0.13
%
0.13
%
0.14
%
0.13
%
0.14
%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter
$
11,477
$
12,124
$
12,647
$
13,868
$
15,493
Additions
1,318
1,116
552
704
489
Reductions Payments
(1,017
)
(226
)
(778
)
(1,605
)
(706
)
Return to Accrual Status
(259
)
(1,527
)
(297
)
(301
)
(116
)
Sales of Foreclosed Real Estate
-
-
-
-
(1,292
)
Charge-offs / Write-downs
-
(10
)
-
(19
)
-
Total Reductions
(1,276
)
(1,763
)
(1,075
)
(1,925
)
(2,114
)
Balance at End of Quarter
$
11,519
$
11,477
$
12,124
$
12,647
$
13,868
1
Comprised of other revolving credit, installment, and lease
financing.
Bank of Hawai‘i Corporation and Subsidiaries
Reserve for Credit Losses Table 12 Three Months
Ended Nine Months Ended September 30, June
30, September 30, September 30, (dollars in
thousands)
2023
2023
2022
2023
2022
Balance at Beginning of Period
$
151,702
$
150,579
$
154,098
$
151,247
$
164,297
Loans and Leases Charged-Off Commercial Commercial and
Industrial
(294
)
(203
)
(147
)
(758
)
(729
)
Consumer Residential Mortgage
-
(6
)
-
(6
)
(80
)
Home Equity
(13
)
(5
)
-
(68
)
(90
)
Automobile
(1,353
)
(1,293
)
(794
)
(4,309
)
(3,481
)
Other 1
(1,957
)
(2,004
)
(1,924
)
(6,296
)
(5,739
)
Total Loans and Leases Charged-Off
(3,617
)
(3,511
)
(2,865
)
(11,437
)
(10,119
)
Recoveries on Loans and Leases Previously Charged-Off Commercial
Commercial and Industrial
72
103
45
225
465
Consumer Residential Mortgage
69
58
156
188
1,130
Home Equity
131
578
367
893
1,298
Automobile
721
777
441
2,170
1,864
Other 1
575
618
709
1,867
2,098
Total Recoveries on Loans and Leases Previously Charged-Off
1,568
2,134
1,718
5,343
6,855
Net Charged-Off - Loans and Leases
(2,049
)
(1,377
)
(1,147
)
(6,094
)
(3,264
)
Net Charged-Off - Accrued Interest Receivable Provision for Credit
Losses: Loans and Leases
1,945
3,167
(929
)
6,918
(8,121
)
Accrued Interest Receivable
-
-
-
-
(367
)
Unfunded Commitments
55
(667
)
905
(418
)
429
Total Provision for Credit Losses
2,000
2,500
(24
)
6,500
(8,059
)
Balance at End of Period
$
151,653
$
151,702
$
152,927
$
151,653
$
152,927
Components Allowance for Credit Losses - Loans and
Leases
$
145,263
$
145,367
$
146,436
$
145,263
$
146,436
Reserve for Unfunded Commitments
6,390
6,335
6,491
6,390
6,491
Total Reserve for Credit Losses
$
151,653
$
151,702
$
152,927
$
151,653
$
152,927
Average Loans and Leases Outstanding
$
13,903,214
$
13,876,754
$
13,126,717
$
13,833,164
$
12,709,045
Ratio of Net Loans and Leases Charged-Off to Average Loans
and Leases Outstanding (annualized)
0.06
%
0.04
%
0.03
%
0.06
%
0.03
%
Ratio of Allowance for Credit Losses to Loans and Leases
Outstanding 2
1.04
%
1.04
%
1.10
%
1.04
%
1.10
%
1
Comprised of other revolving credit, installment, and lease
financing.
2
The numerator comprises the Allowance for Credit Losses - Loans and
Leases.
Bank of Hawai‘i Corporation and Subsidiaries
Business Segments Selected Financial Information Table
13a Consumer Commercial Treasury
Consolidated (dollars in thousands)
Banking
Banking and Other Total Three Months Ended
September 30, 2023 Net Interest Income (Loss)
$
100,913
$
53,823
$
(33,799
)
$
120,937
Provision for Credit Losses
1,974
74
(48
)
2,000
Net Interest Income (Loss) After Provision for Credit Losses
98,939
53,749
(33,751
)
118,937
Noninterest Income
31,027
8,483
10,824
50,334
Noninterest Expense
(81,377
)
(18,937
)
(5,287
)
(105,601
)
Income (Loss) Before Income Taxes
48,589
43,295
(28,214
)
63,670
Provision for Income Taxes
(12,582
)
(10,987
)
7,802
(15,767
)
Net Income (Loss)
$
36,007
$
32,308
$
(20,412
)
$
47,903
Total Assets as of September 30, 2023
$
8,584,221
$
5,719,577
$
9,245,987
$
23,549,785
Three Months Ended September 30, 2022 1 Net Interest
Income (Loss)
$
85,658
$
56,251
$
(254
)
$
141,655
Provision for Credit Losses
1,148
(1
)
(1,147
)
-
Net Interest Income After Provision for Credit Losses
84,510
56,252
893
141,655
Noninterest Income (Loss)
30,974
(911
)
597
30,660
Noninterest Expense
(83,408
)
(17,330
)
(5,011
)
(105,749
)
Income (Loss) Before Income Taxes
32,076
38,011
(3,521
)
66,566
Provision for Income Taxes
(8,067
)
(9,206
)
3,508
(13,765
)
Net Income (Loss)
$
24,009
$
28,805
$
(13
)
$
52,801
Total Assets as of September 30, 2022
$
8,399,068
$
5,486,330
$
9,248,642
$
23,134,040
1
Certain prior period information has been reclassified to conform
to current presentation.
Bank of Hawai‘i Corporation and
Subsidiaries Business Segments Selected Financial
Information Table 13b Consumer Commercial
Treasury Consolidated (dollars in thousands)
Banking Banking and Other Total Nine
Months Ended September 30, 2023 Net Interest Income (Loss)
$
298,512
$
164,202
$
(81,474
)
$
381,240
Provision for Credit Losses
6,035
59
406
6,500
Net Interest Income (Loss) After Provision for Credit Losses
292,477
164,143
(81,880
)
374,740
Noninterest Income
94,126
25,072
15,128
134,326
Noninterest Expense
(247,543
)
(58,528
)
(15,485
)
(321,556
)
Income (Loss) Before Income Taxes
139,060
130,687
(82,237
)
187,510
Provision for Income Taxes
(35,838
)
(32,490
)
21,624
(46,704
)
Net Income (Loss)
$
103,222
$
98,197
$
(60,613
)
$
140,806
Total Assets as of September 30, 2023
$
8,584,221
$
5,719,577
$
9,245,987
$
23,549,785
Nine Months Ended September 30, 2022 1 Net Interest
Income
$
232,646
$
152,394
$
14,780
$
399,820
Provision for Credit Losses
3,463
(200
)
(11,263
)
(8,000
)
Net Interest Income After Provision for Credit Losses
229,183
152,594
26,043
407,820
Noninterest Income
94,811
17,650
3,908
116,369
Noninterest Expense
(247,854
)
(53,014
)
(11,694
)
(312,562
)
Income Before Income Taxes
76,140
117,230
18,257
211,627
Provision for Income Taxes
(19,114
)
(28,654
)
638
(47,130
)
Net Income
$
57,026
$
88,576
$
18,895
$
164,497
Total Assets as of September 30, 2022
$
8,399,068
$
5,486,330
$
9,248,642
$
23,134,040
1
Certain prior period information has been reclassified to conform
to current presentation.
Bank of Hawai‘i Corporation and
Subsidiaries Selected Quarterly Financial Data Table
14 Three Months Ended September 30, June
30, March 31, December 31, September 30,
(dollars in thousands, except per share amounts)
2023
2023
2023
2022
2022
Quarterly Operating Results Interest Income Interest and
Fees on Loans and Leases
$
151,245
$
144,541
$
136,501
$
128,683
$
115,013
Income on Investment Securities Available-for-Sale
23,552
23,301
23,893
18,476
16,995
Held-to-Maturity
22,838
23,375
23,948
23,708
20,243
Deposits
18
18
27
13
10
Funds Sold
12,828
6,395
3,366
1,093
2,335
Other
1,464
2,121
597
340
322
Total Interest Income
211,945
199,751
188,332
172,313
154,918
Interest Expense Deposits
72,153
53,779
37,794
23,494
10,296
Securities Sold Under Agreements to Repurchase
4,034
5,436
5,377
4,289
2,745
Funds Purchased
-
184
704
318
40
Short-Term Borrowings
-
2,510
3,203
1,978
-
Other Debt
14,821
13,494
5,299
1,496
182
Total Interest Expense
91,008
75,403
52,377
31,575
13,263
Net Interest Income
120,937
124,348
135,955
140,738
141,655
Provision for Credit Losses
2,000
2,500
2,000
200
-
Net Interest Income After Provision for Credit Losses
118,937
121,848
133,955
140,538
141,655
Noninterest Income Trust and Asset Management
10,548
11,215
10,690
10,652
10,418
Mortgage Banking
1,059
1,176
1,004
991
1,002
Service Charges on Deposit Accounts
7,843
7,587
7,737
7,513
7,526
Fees, Exchange, and Other Service Charges
13,824
14,150
13,808
13,906
13,863
Investment Securities Losses, Net
(6,734
)
(1,310
)
(1,792
)
(1,124
)
(2,147
)
Annuity and Insurance
1,156
1,038
1,271
1,087
1,034
Bank-Owned Life Insurance
2,749
2,876
2,842
2,475
2,486
Other
19,889
6,523
5,177
5,672
(3,522
)
Total Noninterest Income
50,334
43,255
40,737
41,172
30,660
Noninterest Expense Salaries and Benefits
58,825
56,175
65,088
57,639
59,938
Net Occupancy
10,327
9,991
9,872
9,499
10,186
Net Equipment
9,477
10,573
10,375
9,942
9,736
Data Processing
4,706
4,599
4,583
4,579
4,616
Professional Fees
3,846
4,651
3,883
3,958
3,799
FDIC Insurance
3,361
3,173
3,234
1,774
1,680
Other
15,059
14,874
14,884
15,312
15,794
Total Noninterest Expense
105,601
104,036
111,919
102,703
105,749
Income Before Provision for Income Taxes
63,670
61,067
62,773
79,007
66,566
Provision for Income Taxes
15,767
15,006
15,931
17,700
13,765
Net Income
$
47,903
$
46,061
$
46,842
$
61,307
$
52,801
Preferred Stock Dividends
1,969
1,969
1,969
1,969
1,969
Net Income Available to Common Shareholders
$
45,934
$
44,092
$
44,873
$
59,338
$
50,832
Basic Earnings Per Common Share
$
1.17
$
1.12
$
1.14
$
1.51
$
1.28
Diluted Earnings Per Common Share
$
1.17
$
1.12
$
1.14
$
1.50
$
1.28
Balance Sheet Totals Loans and Leases
$
13,919,491
$
13,914,889
$
13,824,522
$
13,646,420
$
13,321,606
Total Assets
23,549,785
24,947,936
23,931,977
23,606,877
23,134,040
Total Deposits
20,802,309
20,508,615
20,491,300
20,615,696
20,888,773
Total Shareholders' Equity
1,363,840
1,358,279
1,354,430
1,316,995
1,282,384
Performance Ratios Return on Average Assets
0.78
%
0.77
%
0.80
%
1.05
%
0.91
%
Return on Average Shareholders' Equity
13.92
13.55
14.25
18.91
15.31
Return on Average Common Equity
15.38
14.95
15.79
21.28
16.98
Efficiency Ratio 1
61.66
62.07
63.34
56.46
61.37
Net Interest Margin 2
2.13
2.22
2.47
2.60
2.60
1
Efficiency ratio is defined as noninterest expense divided by total
revenue (net interest income and noninterest income).
2
Net interest margin is defined as net interest income, on a
taxable-equivalent basis, as a percentage of average earning
assets.
Bank of Hawai‘i Corporation and Subsidiaries
Hawaii Economic Trends Table 15 Eight Months
Ended Year Ended (dollars in millions; jobs in
thousands)
August 31, 2023 December 31, 2022
December 31, 2021 Hawaii Economic Trends State
General Fund Revenues 1
$
6,461.9
(3.5
)%
$
9,441.3
16.0
%
$
8,137.9
26.9
%
General Excise and Use Tax Revenue 1
3,027.8
5.9
4,263.4
18.3
3,604.3
18.6
Jobs 2
657.3
654.5
642.6
September 30, December 31,
2023
2022
2021
Unemployment, seasonally adjusted 3 Statewide
2.8
%
3.7
%
3.2
%
Honolulu County
2.2
3.3
3.7
Hawaii County
2.2
4.7
1.8
Maui County 6.4
4.5
2.4
Kauai County
2.0
4.7
2.7
September 30, December 31, (1-year percentage
change, except months of inventory)
2023
2022
2022
2022
Housing Trends (Single Family Oahu) 4 Median Home Price
(5.4
)%
11.6
%
19.3
%
5.2
%
Home Sales Volume (units)
(30.5
)%
(23.2
)%
17.9
%
2.3
%
Months of Inventory
2.7
2.1
0.8
1.4
Monthly Visitor Arrivals, Percentage Change
(in thousands, except percent change)
Not Seasonally
Adjusted from Previous Year Tourism 5 August 31,
2023
766.0
(7.7
)%
July 31, 2023
929.4
1.2
June 30, 2023
886.0
5.3
May 31, 2023
790.5
2.1
April 30, 2023
806.2
(0.4
)
March 31, 2023
892.2
13.6
February 28, 2023
733.6
17.6
January 31, 2023
775.1
36.7
December 31, 2022
858.1
14.0
November 30, 2022
725.5
18.2
October 31, 2022
726.1
31.8
September 30, 2022
691.8
37.1
August 31, 2022
829.8
14.8
July 31, 2022
918.6
4.4
June 30, 2022
841.8
6.4
May 31, 2022
774.1
22.9
April 30, 2022
809.6
67.3
March 31, 2022
785.7
78.7
February 28, 2022
623.7
165.1
January 31, 2022
567.2
229.8
December 31,2021
752.8
219.3
November 30, 2021
614.0
234.1
October 31, 2021
550.8
618.2
September 30, 2021
504.6
2,641.0
August 31, 2021
723.0
2,995.6
1
Source: Hawaii Department of Business, Economic Development &
Tourism
2
Source: U.S. Bureau of Labor Statistics
3
Source: University of Hawaii Economic Research Organization (UHERO)
4
Source: Honolulu Board of Realtors
5
Source: Hawaii Tourism Authority
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231023382031/en/
Media Inquiries Melissa Torres-Laing Email:
Melissa.Torres-Laing@boh.com Telephone: 808-694-8384 Mobile:
808-859-1703
Investor/Analyst Inquiries
Cindy Wyrick Email: Cynthia.Wyrick@boh.com Telephone:
808-694-8430
Chang Park Email: Chang.Park@boh.com Phone: 808-694-8238
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