-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, UGTQzz7ya8KeAu6mLgywqojOD4wv4Eik3fU8v2VnQeB8IBEMg/AOL4h3hKwXjzA6 bIT5ONbmpDmc87dkSK0Gdw== 0000046195-94-000013.txt : 19941116 0000046195-94-000013.hdr.sgml : 19941116 ACCESSION NUMBER: 0000046195-94-000013 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19940930 FILED AS OF DATE: 19941114 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANCORP HAWAII INC CENTRAL INDEX KEY: 0000046195 STANDARD INDUSTRIAL CLASSIFICATION: 6022 IRS NUMBER: 990148992 STATE OF INCORPORATION: HI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-06887 FILM NUMBER: 94559676 BUSINESS ADDRESS: STREET 1: 130 MERCHANT STREET CITY: HONOLULU STATE: HI ZIP: 96813- BUSINESS PHONE: 8085378111 MAIL ADDRESS: STREET 1: PO BOX 2900 CITY: HONOLULU STATE: HI ZIP: 96846 FORMER COMPANY: FORMER CONFORMED NAME: HAWAII BANCORPORATION INC DATE OF NAME CHANGE: 19800128 10-Q 1 U N I T E D S T A T E S SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [ X ] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended September 30, 1994 or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from _____________ to _____________ Commission File Number 1-6887 B A N C O R P H A W A I I, I N C. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Hawaii 99-0148992 ------------------------ --------------------------------- (State of incorporation) (IRS Employer Identification No.) 130 Merchant Street, Honolulu, Hawaii 96813 - ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) (808) 537-8111 ---------------------------------------------------- (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes X No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common Stock, $2 Par Value; outstanding at September 30, 1994 - 42,223,990 shares BANCORP HAWAII, INC. and subsidiaries September 30, 1994 PART I. - Financial Information Item 1. Financial Statements The consolidated statements of condition as of September 30, 1994 and 1993, and December 31, 1993 and related statements of income, shareholders' equity, and cash flows are included herein. The unaudited financial statements listed above have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and changes in financial position in conformity with generally accepted accounting principles. The financial statements reflect all adjustments of a normal and recurring nature which are, in the opinion of management, necessary to a fair statement of the results for the interim periods. Consolidated Statements of Condition (Unaudited) Bancorp Hawaii, Inc. and subsidiaries - ------------------------------------------------------------------------------------------------------------------
September 30 December 31 September 30 (in thousands of dollars) 1994 1993 1993 - ------------------------------------------------------------------------------------------------------------------ Assets Interest-Bearing Deposits $792,196 $837,704 $1,028,378 Investment Securities - Held to Maturity (Market Value of $2,221,072, $2,791,328, $3,658,639, respectively) 2,253,645 2,753,590 3,595,098 Investment Securities - Available for Sale 1,159,218 893,453 28,983 Funds Sold 61,250 57,699 72,598 Loans 7,639,021 7,258,368 7,209,695 Unearned Income (145,015) (149,949) (151,768) Reserve for Possible Loan Losses (143,061) (125,284) (119,726) Net Loans 7,350,945 6,983,135 6,938,201 - ------------------------------------------------------------------------------------------------------------------ Total Earning Assets 11,617,254 11,525,581 11,663,258 Cash and Non-Interest Bearing Deposits 442,695 395,315 424,014 Premises and Equipment 197,342 167,260 161,229 Customers' Acceptance Liability 13,553 8,475 15,090 Accrued Interest Receivable 80,543 82,023 82,172 Other Real Estate 1,878 4,123 2,495 Intangibles, including Goodwill 94,643 102,929 95,117 Trading Securities 13,805 74,351 14,300 Other Assets 100,285 102,070 82,787 - ------------------------------------------------------------------------------------------------------------------ Total Assets $12,561,998 $12,462,127 $12,540,462 ================================================================================================================== Liabilities Domestic Deposits Demand - Non-Interest Bearing $1,322,843 $1,405,540 $1,324,627 - Interest-Bearing 1,734,449 1,931,807 1,902,241 Savings 1,196,409 1,251,876 1,277,245 Time 1,562,432 1,581,534 1,630,201 Foreign Deposits 1,144,642 834,218 938,137 - ------------------------------------------------------------------------------------------------------------------ Total Deposits 6,960,775 7,004,975 7,072,451 Securities Sold Under Agreements to Repurchase 2,362,487 2,509,550 2,717,056 Funds Purchased 557,550 743,915 663,920 Short-Term Borrowings 625,400 600,266 621,054 Bank's Acceptances Outstanding 13,553 8,475 15,090 Accrued Pension Costs 23,763 24,367 23,520 Accrued Interest Payable 56,797 34,347 41,544 Accrued Taxes Payable 141,384 154,291 140,112 Other Liabilities 96,960 85,967 82,668 Long-Term Debt 745,680 357,870 253,500 - ------------------------------------------------------------------------------------------------------------------ Total Liabilities 11,584,349 11,524,023 11,630,915 Shareholders' Equity Common Stock ($2 par value), authorized 100,000,000 shares; issued/outstanding, September 1994 - 42,190,534; December 1993 - 28,425,038; September 1993 - 28,396,983; 84,381 56,850 56,794 Surplus 269,447 284,886 284,411 Unrealized Valuation Adjustments (11,097) 537 (1,626) Retained Earnings 634,918 595,831 569,968 - ------------------------------------------------------------------------------------------------------------------ Total Shareholders' Equity 977,649 938,104 909,547 - ------------------------------------------------------------------------------------------------------------------ Total Liabilities and Shareholders' Equity $12,561,998 $12,462,127 $12,540,462 ==================================================================================================================
Consolidated Statements of Income (Unaudited) Bancorp Hawaii, Inc. and subsidiaries - ------------------------------------------------------------------------------------------------------------------
3 Months 3 Months 9 Months 9 Months Ended Ended Ended Ended September 30 September 30 September 30 September 30 (in thousands of dollars except per share amounts) 1994 1993 1994 1993 - ------------------------------------------------------------------------------------------------------------------ Interest Income Interest on Loans $137,950 $125,455 $397,920 $370,401 Loan Fees 7,462 10,070 24,498 28,021 Income on Lease Financing 3,276 4,590 10,558 12,786 Interest and Dividends on Investment Securities Taxable 33,111 51,144 106,921 153,118 Non-taxable 427 544 1,272 1,850 Income on Investment Securities Available for Sale 14,685 308 36,395 5,466 Interest on Deposits 8,921 10,595 25,768 33,367 Interest on Security Resale Agreements -- 8 -- 2,934 Interest on Funds Sold 438 639 1,230 1,744 - ------------------------------------------------------------------------------------------------------------------ Total Interest Income 206,270 203,353 604,562 609,687 Interest Expense Interest on Deposits 48,492 47,122 134,938 153,468 Interest on Security Repurchase Agreements 25,101 21,772 70,337 66,972 Interest on Funds Purchased 7,685 6,103 18,521 17,574 Interest on Short-Term Borrowings 3,805 3,242 11,742 10,332 Interest on Long-Term Debt 9,456 3,852 22,044 7,403 - ------------------------------------------------------------------------------------------------------------------ Total Interest Expense 94,539 82,091 257,582 255,749 Net Interest Income 111,731 121,262 346,980 353,938 Provision for Possible Loan Losses 3,031 23,889 17,253 45,105 - ------------------------------------------------------------------------------------------------------------------ Net Interest Income After Provision for Possible Loan Losses 108,700 97,373 329,727 308,833 Non-Interest Income Trust Income 13,170 11,118 36,355 29,497 Service Charges on Deposit Accounts 6,922 6,969 21,137 19,761 Fees, Exchange, and Other Service Charges 8,969 8,188 25,753 23,757 Other Operating Income 5,463 5,401 20,086 14,565 Investment Securities Gains (Losses) (671) 6,669 (2,269) 9,638 - ------------------------------------------------------------------------------------------------------------------ Total Non-Interest Income 33,853 38,345 101,062 97,218 Non-Interest Expense Salaries 34,492 33,806 103,058 100,911 Pensions and Other Employee Benefits 10,344 10,305 34,061 32,367 Net Occupancy Expense of Premises 9,325 10,016 27,505 27,707 Net Equipment Expense 7,598 6,604 22,503 19,950 Other Operating Expense 27,085 24,313 79,710 69,355 - ------------------------------------------------------------------------------------------------------------------ Total Non-Interest Expense 88,844 85,044 266,837 250,290 - ------------------------------------------------------------------------------------------------------------------ Income Before Income Taxes 53,709 50,674 163,952 155,761 Provision for Income Taxes 21,749 20,532 63,438 58,886 - ------------------------------------------------------------------------------------------------------------------ Net Income $31,960 $30,142 $100,514 $96,875 ================================================================================================================== Earnings Per Common Share and Common Share Equivalents $0.75 $0.70 $2.34 $2.25 - ------------------------------------------------------------------------------------------------------------------ Average Common Shares and Common Share Equivalents Outstanding 42,845,626 42,979,704 42,943,828 43,080,657 - ------------------------------------------------------------------------------------------------------------------ /TABLE Consolidated Statements of Shareholders' Equity (Unaudited) Bancorp Hawaii, Inc. and subsidiaries - ----------------------------------------------------------------------------------------------------------------
Common Unrealized Retained (in thousands of dollars except per share amounts) Total Stock Surplus Valuation Adj. Earnings - ---------------------------------------------------------------------------------------------------------------- Balance at December 31, 1993 $938,104 $56,850 $284,886 $537 $595,831 Net Income 100,514 - - - 100,514 Sale of Common Stock 182,640 Profit Sharing Plan 5,909 365 5,544 - - 126,813 Stock Option Plan 2,018 254 1,764 - - 163,421 Dividend Reinvestment Plan 5,420 327 5,093 - - Stock Repurchased (29,543) (1,703) (27,840) - - Unrealized Valuation Adjustments Investment Securities (14,699) - - (14,699) - Foreign Exchange Translation Adjustment 3,065 - - 3,065 - 50 Percent Stock Dividend (59) 28,288 - - (28,347) Cash Dividends Paid of $.78 Per Share (33,080) - - - (33,080) - ---------------------------------------------------------------------------------------------------------------- Balance at September 30, 1994 $977,649 $84,381 $269,447 ($11,097) $634,918 ================================================================================================================ Balance at December 31, 1992 $828,328 $56,112 $272,810 ($2,271) $501,677 Net Income 96,875 - - - 96,875 Sale of Common Stock 75,139 Profit Sharing Plan 3,429 150 3,279 - - 124,937 Stock Option Plan 2,786 250 2,536 - - 140,717 Dividend Reinvestment Plan 6,068 282 5,786 - - Unrealized Valuation Adjustments Investment Securities (19) - - (19) - Foreign Exchange Translation Adjustment 664 - - 664 - Cash Dividends Paid of $.67 Per Share (28,584) - - - (28,584) - ---------------------------------------------------------------------------------------------------------------- Balance at September 30, 1993 $909,547 $56,794 $284,411 ($1,626) $569,968 ================================================================================================================ /TABLE Consolidated Statements of Cash Flows (Unaudited) Bancorp Hawaii, Inc. and subsidiaries - --------------------------------------------------------------------------------------------------------------
Nine Months Ended September 30 (in thousands of dollars) 1994 1993 - -------------------------------------------------------------------------------------------------------------- Operating Activities Net Income $100,514 $96,875 Adjustments to reconcile net income to net cash provided by operating activities: Provision for loan losses, depreciation, and amortization of income and expense 48,837 30,778 Deferred income taxes 10,739 4,612 Realized and unrealized investment security gains (1,720) (8,688) Net (increase) decrease in trading securities 454 (2,523) Other assets and liabilities, net 26,649 53,636 ------------ ------------ Net cash provided by operating activities 185,473 174,690 - -------------------------------------------------------------------------------------------------------------- Investing Activities Proceeds from redemptions of investment securities held to maturity 977,956 418,114 Purchases of investment securities held to maturity (478,011) (977,168) Proceeds from sales of investment securities available for sale 269,605 694,761 Purchases of investment securities available for sale (498,148) (614,651) Net decrease in interest-bearing deposits placed in other banks 45,508 404,120 Net (increase) decrease in funds sold (3,551) 531,876 Net increase in loans and lease financing (395,261) (256,911) Premises and equipment, net (45,237) (17,683) Purchase of American Financial Services of Hawaii, Inc., net of cash acquired -- (48,990) ------------ ------------ Net cash provided (used) by investing activities (127,139) 133,468 - -------------------------------------------------------------------------------------------------------------- Financing Activities Net decrease in demand, savings, and time deposits (44,200) (818,040) Proceeds from lines of credit and long-term debt 387,810 190,012 Principal payments on lines of credit and long-term debt -- (20,612) Net increase (decrease) in short-term borrowings (308,294) 386,578 Proceeds from sale of stock (16,196) 12,283 Cash dividends (33,139) (28,584) ------------ ------------ Net cash used by financing activities (14,019) (278,363) Effect of exchange rate changes on cash 3,065 664 ------------ ------------ Increase in cash and non-interest bearing deposits 47,380 30,459 ------------ ------------ Cash and non-interest bearing deposits at beginning of year 395,315 393,555 ------------ ------------ Cash and non-interest bearing deposits at end of period $442,695 $424,014 - --------------------------------------------------------------------------------------------------------------
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Financial Review Performance Highlights Bancorp Hawaii, Inc. (Bancorp) reported earnings for the third quarter of 1994 of $32.0 million, 6.0% above earnings for the third quarter of 1993. On a per share basis, earnings were $0.75 for the third quarter of 1994, 7.1% above the third quarter of 1993. Year-to- date net income totaled $100.5 million through September 30, 1994, an increase of 3.8% over the same period in 1993. Earnings per share were $2.34 and $2.25 for the nine months ended September 30, 1994 and 1993, respectively. Per share figures have been adjusted for the 50% stock dividend declared in the first quarter of 1994. Tepid loan demand in Hawaii, Bancorp's main market, along with significant increases in interest rates during 1994 have resulted in slowed earnings growth. Total assets were $12.6 billion as of September 30, 1994, up 0.8% from the $12.5 billion reported at year-end 1993. Net loans outstanding increased to $7.4 billion at September 30, 1994 from $7.0 billion at year-end 1993, an increase of 5.3%. Total investment securities stood at $3.4 billion at September 30, 1994 representing a 6.4% decline from year-end 1993. The overall decrease in total investments reflects the maturing of investment securities and reduction of the securities sold under agreement to repurchase. Total deposits remained level at $7.0 billion, compared with year-end 1993 and decreased from the $7.1 billion reported on September 30, 1993. Securities sold under agreements to repurchase (repos) as of September 30, 1994 totaled $2.4 billion, a decline of 5.9% from year-end 1993 and a 13.0% decline from September 30, 1993. The changes in repo balances, which are mainly comprised of government funds are discussed later in the liquidity section of this report. Non-performing assets (NPAs) increased to $56.1 million at September 30, 1994 compared to $53.3 million at the end of the second quarter of 1994. This favorably compares with NPAs of $68.8 million at year-end 1993. A further discussion on NPAs and Reserve for Loan Losses follows. Trust income for the third quarter of 1994 which includes both American Financial Services (AFS) and Hawaiian Trust Company totaled $13.2 million, an 18.5% increase over the $11.1 million reported for the same quarter in 1993. The substantial increase in trust income was partially due to synergies gained by consolidating the operations of AFS. Synergies gained from the consolidation are expected to continue for the rest of the year. Risk Elements in Lending Activities At September 30, 1994, total loans were $7.6 billion, a 5.2% increase over year-end 1993 and 6.0% above total loans on September 30, 1993. The focus of the loan growth has been in the residential mortgage and installment loan categories with the weak commercial loan growth reflecting Hawaii's sluggish economy. In spite of this slower loan growth, Bancorp's lending policies remain unchanged and conservative. The following table presents Bancorp's total loan portfolio balances for the periods indicated. Loan Portfolio Balances Bancorp Hawaii, Inc., and subsidiaries - ----------------------------------------------------------------------------------
September 30 December 31 September 30 (in millions of dollars) 1994 1993 1993 - ---------------------------------------------------------------------------------- Domestic Loans Commercial and Industrial $1,653.1 $1,709.2 $1,712.4 Real Estate Construction -- Commercial 125.4 136.2 137.4 -- Residential 18.1 35.1 35.0 Mortgage -- Commercial 1,269.8 1,230.6 1,191.2 -- Residential 2,771.4 2,476.0 2,371.9 Installment 713.3 676.2 657.6 Lease Financing 380.0 401.6 406.5 - ---------------------------------------------------------------------------------- Total Domestic 6,931.1 6,664.9 6,512.0 - ---------------------------------------------------------------------------------- Foreign Loans 707.9 593.5 697.7 - ---------------------------------------------------------------------------------- Total Loans $7,639.0 $7,258.4 $7,209.7 ==================================================================================
Commercial and Industrial Loans Commercial and Industrial loans outstanding were $1.7 billion as of September 30, 1994, reflecting a decrease of 3.3% from year-end 1993. There was also a decline in loan balances as compared to the same time last year. The decline in this loan category reflects the lack of loan demand due to the tepid business climate in Hawaii. Real Estate Loans Total real estate loans at September 30, 1994 were $4.2 billion, up 7.9% over year-end 1993. The real estate sector continues to show growth reflecting the residuals of the refinancing surge and to a certain extent the tight housing market in Hawaii. Both commercial and residential real estate balances showed growth in 1994. Commercial real estate balances (excluding construction) of $1.3 billion on September 30, 1994 rose 3.2% from year-end 1993 and 6.6% from September 30, 1993. Residential mortgage loans (excluding construction loans) totaled $2.8 billion as of September 30, 1994, up 11.9% from year-end 1993 and up 16.8% from the same date last year. Construction loan balances have declined to $143.5 million at September 30, 1994. These balances compare with $171.3 million at year-end 1993 and $172.4 million on September 30, 1993. Although there is an overall slowdown in the construction sector in Hawaii, the residential housing market continues to show good growth. Other Lending Installment loans as of September 30, 1994 increased by 5.5% to $713.3 million from the $676.2 million reported on December 31, 1993. The September 30, 1994 balance was 8.5% above the $657.6 million on September 30, 1993. The increase reflects Bancorp's efforts to increase its installment loan base through special programs for VISA cards and other consumer loans. Lease financing of $380.0 million on September 30, 1994 decreased 5.4% from $401.7 million reported at year-end 1993 and 6.5% from $406.5 million reported at September 30, 1993. The decline in leasing activity reflects the competitiveness in the market between loans and leases for equipment financing. Foreign loan balances have increased to $707.9 million as of September 30, 1994, up 19.3% from a year-end 1993 and up 1.5% from a year ago September 30. The rise in foreign loans over year-end 1993 reflect the increased valuation of Japanese loans due to the yen-U.S. dollar relationship. The foreign loan total includes outstanding credits to Less Developed Countries (LDC). LDC exposure remains very limited at $1.0 million in outstanding credits and $98.1 million in confirmed letters of credit and banker's acceptances at September 30, 1994. All LDC exposure is in the Philippines. Non-Performing Assets and Past Due Loans Bancorp's non-performing assets include non-accrual loans, restructured loans and foreclosed real estate. NPAs totaled $56.1 million, representing 0.73% of total loans outstanding at September 30, 1994. This ratio compares with 0.95% at year-end 1993 and 1.26% at the end of the third quarter 1993. The improvement of this ratio reflects Bancorp's effort to aggressively manage these loans and charge off balances when appropriate. Non-accrual loans increased during the third quarter of 1994 to $54.2 million from $42.6 million at June 30, 1994, but remained lower than the $58.4 million reported at year-end 1993. The increase from the second quarter of 1994 was mainly due to the addition of a commercial real estate property loan of $10.8 million. Of the non- accrual loans, only eight loans exceed $1 million and represent in total $41.8 million of the balance at September 30, 1994. At the end of the third quarter of 1994, there were no restructured loans reported compared with $7.3 million reported at June 30, 1994 and $6.3 million at year-end 1993. Total foreclosed real estate declined to $1.9 million compared to the $3.4 million reported at June 30, 1994 and $4.1 million reported at year-end 1993. The decrease reflects the sale of a hotel property on the island of Kauai at no additional loss. There remains only seven properties in foreclosed real estate, of the seven properties, two represent $1.2 million or 67% of foreclosed real estate. Accruing loans past due 90 days or more decreased to $9.2 million from the $9.9 million reported at June 30, 1994 and also lower than the $10.0 million reported at year-end 1993. Total NPAs and loans 90 days past due totaled $65.3 million, a 17.1% decrease from the $78.8 million reported at year-end 1993. Total NPAs and loans 90 days past due as a percent of total loans outstanding was .85%, 24 basis points below the 1.09% reported at year-end 1993. The following table presents NPAs and past due loans for the periods indicated. Bancorp Hawaii, Inc. Consolidated Non-Performing Assets and Accruing Loans Past Due 90 Days or More - -------------------------------------------------------------------------------
September 30 December 31 September (in millions of dollars) 1994 1993 1993 - ------------------------------------------------------------------------------- Non-Accrual Loans Commercial $20.8 $15.7 $35.6 Real Estate Construction 1.8 17.7 18.2 Commercial 15.5 7.8 9.1 Residential 15.0 16.4 17.0 Installment 0.3 0.5 0.6 Leases 0.8 0.3 0.4 Other -- -- -- Foreign -- -- 1.3 ---------------------------------------- Subtotal 54.2 58.4 82.2 Restructured Loans Commercial -- 1.0 1.0 Real Estate Construction -- -- -- Commercial -- 5.3 5.3 Residential -- -- -- Installment -- -- -- Leases -- -- -- Other -- -- -- Foreign -- -- -- ---------------------------------------- Subtotal -- 6.3 6.3 Foreclosed Real Estate Domestic 1.9 4.1 2.5 Foreign -- -- -- ---------------------------------------- Subtotal 1.9 4.1 2.5 ---------------------------------------- Total Non-Performing Assets 56.1 68.8 91.0 ======================================== Accruing Loans Past Due 90 Days or More Commercial 0.9 0.3 1.1 Real Estate Construction -- -- 1.5 Commercial 1.4 1.9 1.5 Residential 2.4 4.1 3.9 Installment 4.5 3.5 4.2 Leases -- 0.1 0.1 Other -- 0.1 -- Foreign -- -- -- ---------------------------------------- Subtotal 9.2 10.0 12.3 ---------------------------------------- Total $65.3 $78.8 $103.3 ======================================== - ------------------------------------------------------------------------------- Ratio of Non-Performing Assets to Total Loans 0.73% 0.95% 1.26% - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- Ratio of Non-Performing Assets and Accruing Loans Past Due 90 Days or More to Total Loans 0.85% 1.09% 1.43% - -------------------------------------------------------------------------------
Summary of Loan Loss Experience The reserve for loan losses stood at $143.1 million at September 30, 1994, representing 1.91% of loans outstanding. This compares with 1.91% as of June 30, 1994, 1.76% at year-end 1993 and 1.70% on September 30, 1993. Loan loss provisions were $3.1 million for the third quarter of 1994, about half the $5.9 million reported for the second quarter of 1994. The reduced level of provisions reflecting the strong recoveries and the lower level of charge-offs so far this year. As indicated in the table following, charge-offs totaled $8.0 million for the third quarter of 1994, compared with $4.8 million for the second quarter of 1994 and $37.0 million during the third quarter of 1993. The large amount charged-off in the third quarter of 1993 was mainly due to the additional charge-off of loans to a single borrower secured by commercial leasehold property. Partial charge-offs were also recognized in late 1992. The strong level of recoveries for 1994 have been largely realized from those loans. Net charge-offs for the third quarter of 1994 were $1.2 million, compared to the net recovery figure of $5.2 million reported for the second quarter of 1994. For the year-to-date, Bancorp reported a net recovery of $0.5 million compared to net charge-offs of $54.0 million for the same period in 1993. The annualized ratio of net charge-offs to average loans outstanding for the third quarter 1994 of 0.06%, compares with the ratio of net recoveries to average loans of 0.29% for the second quarter of 1994 and well below the net charge-off ratio of 2.00% reported for the third quarter of 1993. A detailed breakdown of charge-offs and recoveries by loan category is presented in the following table. Summary of Loss Experience Bancorp Hawaii, Inc., and subsidiaries - --------------------------------------------------------------------------------------------------------------------
Third Third First Nine First Nine Quarter Quarter Months Months (in millions of dollars) 1994 1993 1994 1993 - -------------------------------------------------------------------------------------------------------------------- Average Loans Outstanding $7,468.3 $7,076.7 $7,310.9 $6,973.4 Balance of Reserve for Possible Loan Losses at Beginning of Period $141.2 $131.2 $125.3 $128.6 Loans Charged Off Commercial and Industrial 4.1 31.0 9.8 42.0 Real Estate - Construction 0.1 -- 0.1 0.2 Real Estate - Mortgage Commercial 0.8 -- 1.8 2.6 Residential 0.5 0.2 0.6 0.2 Installment 2.5 2.3 6.8 6.2 Foreign -- 1.5 0.7 6.4 Leases -- 2.0 0.1 2.0 - -------------------------------------------------------------------------------------------------------------------- Total Charged Off 8.0 37.0 19.9 59.6 Recoveries on Loans Previously Charged Off Commercial and Industrial 5.2 0.7 16.3 2.7 Real Estate - Construction -- -- -- -- Real Estate - Mortgage Commercial 0.2 -- 0.9 -- Residential -- 0.1 0.2 0.2 Installment 0.8 0.8 2.4 2.4 Foreign -- -- -- 0.2 Leases 0.6 -- 0.6 0.1 - -------------------------------------------------------------------------------------------------------------------- Total Recoveries 6.8 1.6 20.4 5.6 - -------------------------------------------------------------------------------------------------------------------- Net (Charge Offs) Recoveries (1.2) (35.4) 0.5 (54.0) Provision Charged to Operating Expenses 3.1 23.9 17.3 45.1 - -------------------------------------------------------------------------------------------------------------------- Balance at End of Period $143.1 $119.7 $143.1 $119.7 ==================================================================================================================== Ratio of Net (Charge Offs) Recoveries to Average Loans Outstanding (annualized) (0.06)% (2.00)% 0.01% (1.03)% - -------------------------------------------------------------------------------------------------------------------- Ratio of Reserve to Loans Outstanding 1.91% 1.70% 1.91% 1.70% - --------------------------------------------------------------------------------------------------------------------
Capital The level of Bancorp's capital is managed through the target ratios outlined in Bancorp's 1993 Annual Report. Bancorp's 6% minimum target of average equity to average assets keeps both objectives of a return on assets of 1% and return on equity of 16% in reasonable balance. The average equity to average assets ratio for the year through September 1994 was 7.69%, compared with the 7.09% reported for 1993. As announced earlier in 1994, Bancorp began a program to repurchase shares of its common stock. So far in 1994, Bancorp has repurchased more than 850,000 shares, more than offsetting the new shares issued for its Profit Sharing Plan, Stock Option Plan and Dividend Reinvestment Plan. Regulatory risk-based capital remained well above minimum guidelines. Bancorp's Total Capital and Tier 1 Capital ratios were 13.79% and 11.05%, respectively, compared to 13.59% and 10.84%, respectively, at June 30, 1994. Regulatory guidelines prescribe a minimum Total Capital ratio of 10.00% and a Tier 1 Capital ratio of 6.00% for an institution to qualify as well capitalized. Bancorp's strategy is to maintain its capital ratios at levels to meet this qualification to benefit from the financial and regulatory incentives provided to well capitalized companies. In addition, the leverage ratio, which is Tier 1 Capital to Total Average Assets, was 7.46% at September 30, 1994, compared to 7.21% at June 30, 1994 and 6.84% at September 30, 1993. The required minimum ratio is 5.00% to qualify an institution as well capitalized. Spread Management The average net interest margin or spread on earning assets for the third quarter of 1994 was 3.79%, a decrease from the 4.01% reported in the second quarter of 1994 and a decrease from the 4.07% reported for the same period in 1993. Year-to-date spread for 1994 was 3.95% compared to 4.00% for the same period in 1993. The rise in interest rates in 1994, combined with the modest loan growth, has continued to place pressure on Bancorp's ability to maintain current spread levels. The impact is seen by the substantial decrease in spread when comparing the third quarter 1994 with second quarter 1994. Over the next two quarters, Bancorp will have an opportunity to reduce its liability sensitive position as a significant amount of fixed rate investments are scheduled to mature. The cost of funds rate for the third quarter of 1994 was 3.77%, which was above the 3.25% reported for the third quarter of 1993. The rise in the cost of funds reflects the impact of higher interest rates and increased competition for deposits. The earning asset yield was 6.98% for the third quarter of 1994, an increase over the third quarter 1993 of 6.81%. This increase has not kept up with the increased cost of funds and results in the squeeze on Bancorp's spread. Consolidated Average Balances and Interest Rates Taxable Equivalent Bancorp Hawaii, Inc. and subsidiaries - ----------------------------------------------------------------------------------------------------------
Three Months Ended Three Months Ended September 30, 1994 September 30, 1993 Average Income/Yield/ Average Income/Yield/ (in millions of dollars) Balance Expense Rate Balance Expense Rate - ---------------------------------------------------------------------------------------------------------- Earning Assets Interest Bearing Deposits $747.0 $8.9 4.74% $1,127.3 $10.6 3.73% Investment Securities -Taxable 2,445.2 33.1 5.37 3,586.7 51.2 5.66 -Tax-Exempt 18.3 0.7 14.22 26.9 0.8 12.18 1,039.6 14.7 5.60 21.2 0.3 5.78 Funds Sold 31.6 0.4 5.50 46.2 0.6 5.55 Net Loans -Domestic 6,820.2 134.6 7.83 6,376.7 122.4 7.61 -Foreign 648.1 6.8 4.18 700.0 7.9 4.50 Loan Fees 7.5 10.1 Total Earning Assets 11,750.0 206.7 6.98 11,885.0 203.9 6.81 Cash and Due From Banks 373.2 309.5 Other Assets 329.3 246.0 Total Assets $12,452.5 $12,440.5 Interest Bearing Liabilities Domestic Deposits - Demand $1,864.4 11.1 2.36 $2,016.8 10.5 2.07 - Savings 1,219.6 6.4 2.10 1,251.6 8.0 2.54 - Time 1,516.8 16.1 4.20 1,650.6 18.5 4.45 Total Domestic 4,600.8 33.6 2.90 4,919.0 37.0 2.99 Total Foreign 1,240.4 14.9 4.75 1,163.1 10.1 3.43 Total Deposits 5,841.2 48.5 3.29 6,082.1 47.1 3.07 Short-Term Borrowings 3,429.6 36.6 4.23 3,703.0 31.1 3.33 Long-Term Debt 682.0 9.4 5.50 251.1 3.9 6.09 Total Interest Bearing Liabilities 9,952.8 94.5 3.77 10,036.2 82.1 3.25 ------------------------ ------------------------ Net Interest Income 112.2 3.21 121.8 3.56 Average Spread on Earning Assets 3.79% 4.07% Demand Deposits 1,329.2 1,346.5 Other Liabilities 193.1 151.3 Shareholders' Equity 977.4 906.5 Total Liabilities and Shareholders' Equity $12,452.5 $12,440.5 Provision for Possible Losses 3.0 23.9 Net Overhead 55.0 46.7 Income Before Income Taxes 54.2 51.2 Provision for Income Taxes 21.8 20.6 Tax-Equivalent Adjustment 0.4 0.5 ------- ------- Net Income $34.4 $33.0 ======= =======
Consolidated Average Balances and Interest Rates Taxable Equivalent Bancorp Hawaii, Inc. and subsidiaries - ----------------------------------------------------------------------------------------------------------
Nine Months Ended Nine Months Ended September 30, 1994 September 30, 1993 Average Income/Yield/ Average Income/Yield/ (in millions of dollars) Balance Expense Rate Balance Expense Rate - ---------------------------------------------------------------------------------------------------------- Earning Assets Interest Bearing Deposits $839.5 $25.8 4.10% $1,179.7 $33.4 3.78% Investment Securities -Taxable 2,618.3 106.9 5.46 3,467.1 153.1 5.90 -Tax-Exempt 19.0 2.0 13.78 31.2 2.8 12.01 969.8 36.4 5.02 70.1 5.5 10.42 Funds Sold 36.7 1.2 4.48 178.7 4.7 3.50 Net Loans -Domestic 6,665.8 385.4 7.73 6,295.4 361.1 7.67 -Foreign 645.1 23.7 4.90 678.0 22.8 4.50 Loan Fees 24.5 28.0 Total Earning Assets 11,794.2 605.9 6.87 11,900.2 611.4 6.87 Cash and Due From Banks 429.3 411.4 Other Assets 338.6 275.8 Total Assets $12,562.1 $12,587.4 Interest Bearing Liabilities Domestic Deposits - Demand $1,903.4 29.8 2.10 $2,046.0 35.3 2.31 - Savings 1,249.4 20.7 2.21 1,231.2 25.5 2.77 - Time 1,529.3 47.7 4.17 1,756.3 60.4 4.60 Total Domestic 4,682.1 98.2 2.81 5,033.5 121.2 3.22 Total Foreign 1,213.8 36.7 4.04 1,197.8 32.3 3.61 Total Deposits 5,895.9 134.9 3.06 6,231.3 153.5 3.29 Short-Term Borrowings 3,576.9 100.6 3.76 3,803.7 94.8 3.33 Long-Term Debt 560.2 22.1 5.26 168.7 7.4 5.87 Total Interest Bearing Liabilities 10,033.0 257.6 3.43 10,203.7 255.7 3.35 ------------------------ ------------------------ Net Interest Income 348.3 3.44 355.7 3.52 Average Spread on Earning Assets 3.95% 4.00% Demand Deposits 1,371.3 1,306.3 Other Liabilities 192.0 198.3 Shareholders' Equity 965.8 879.1 Total Liabilities and Shareholders' Equity $12,562.1 $12,587.4 Provision for Possible Losses 17.3 45.1 Net Overhead 165.8 153.1 Income Before Income Taxes 165.2 157.5 Provision for Income Taxes 63.4 58.9 Tax-Equivalent Adjustment 1.3 1.7 ------- ------- Net Income $34.4 $33.0 ======= =======
Liquidity Bancorp's liquidity or the ability to meet day-to-day financial needs of its customers is important. The strategy to meet these liquidity needs was outlined in the 1993 Annual Report and currently remains in place. The investment portfolio totaled $3.4 billion at September 30, 1994 reflecting a change from the $3.6 billion reported at year-end 1994. There has been a change in the mix of the portfolio with the held to maturity portfolio decreasing from $2.8 billion at year-end 1993 to $2.3 billion at September 30, 1994. Over the same period, securities classified as available for sale have increased from $893.5 million to $1.6 billion to improve Bancorp's liquidity. At September 30, 1994, deposits were $7.0 billion, compared to $7.0 billion and $7.1 billion reported at year-end 1993 and September 30, 1993, respectively. The level of deposits reflect increased competition for deposits, not only by banks and savings and loan companies, but also by securities brokerage firms. These deposit totals do not include repos, which are offered to governmental entities as an alternative to deposits. Repos offered to state and municipal governments require the same level of collateralization as government deposits, but provide a marginally higher rate of interest, as these funds are not FDIC insured. Repos totaled $2.4 billion as of September 30, 1994, compared to $2.5 billion at year-end 1993 and $2.7 billion as of September 30, 1993. The lower level of repo balances reflects expected variations in governmental cash flows. During the quarter, Bank of Hawaii issued an additional $150 million in bank notes. The notes were issued under the established bank note facility allowing the issuance of up to $750 million in notes. The notes bear floating and fixed interest rates and mature in 1 to 2 years. As of September 30, 1994, $450 million have been issued under this facility. As a result, long term debt increased to $745.7 million at September 30, 1994. Net Overhead The net overhead ratio is a tool used to manage Bancorp's net overhead. As stated in Bancorp's 1993 Annual Report, the net overhead ratio is defined as the ratio of non-interest expense to non-interest income. Bancorp's long term goal is to have a ratio of 2 to 1, where fee income offsets at least half of the cost of operations. The ratio for the third quarter of 1994 was 2.57, compared to the 2.71 for the second quarter of 1994 and 2.68 reported last year for the same period. The net overhead ratio for full year 1993 was 2.82. These ratios are calculated before investment securities gains and losses. Another productivity measure used at Bancorp is the amount of net income per full-time equivalent staff (FTE). The objective is to improve net income with existing or lesser staff levels. Year-to-date 1994 net income per FTE was just over $23,300 or $31,000 on an annualized basis, compared to the $31,000 and $31,100 reported for the full years of 1993 and 1992, respectively. Non-interest income for the third quarter was $34.5 million (excluding investment securities gains/losses), a 9.0% increase over the same quarter in 1993. Trust income was $13.2 million, up 18.5% from the same period last year. The substantial increase was partially due to synergies gained from the consolidation of the subsidiaries of AFS as sales forces and operating units have been combined. Service charges on deposit accounts for the third quarter of 1994 were $6.9 million, compared to $7.0 million reported for the same quarter last year. Fees, exchange and other service charges for the third quarter were $9.0 million, an increase of 9.5% over the same period last year. The increase was largely fueled by increased ATM usage fees. Other operating income totaled $5.4 million for the third quarter of 1994; just slightly above the number reported for the third quarter of 1993. Expense control continues to be a high priority at Bancorp. Non- interest expense for the third quarter of 1994 was $88.8 million compared to $85.0 million reported for the third quarter of 1993, an increase of 4.5%. Control over salary and benefits has been an emphasis for Bancorp as it is the largest single expense category after interest expense. Salary and benefit expenses increased to $44.8 million for the third quarter of 1994, up 1.6% from $44.1 million reported for the same period last year. For the year-to-date, salary and benefits totaled $137.1 million, compared to $133.3 million for the same period in 1993, an increase of 2.9%. The increase largely results from the acquisition of AFS in May of 1993. Occupancy and premises costs declined 6.9% to $9.3 million for the third quarter 1994 from $10.0 million for the third quarter 1993. This decline largely reflecting the elimination of the premises expenses incurred by AFS in 1993. For the year-to-date, net premises is virtually level with the comparable period in 1993. Equipment expenses increased to $7.6 million, 15.1% above third quarter 1993 expenses of $6.6 million. For the year-to-date, net equipment expense is up 12.8% to $22.5 million from the $20.0 million for the same period in 1993. The rise in equipment expenses reflect increased costs to maintain computer equipment, the conversion of a deposit system and the continuing effort to invest in technology. Other operating expenses rose to $79.7 million for the nine months ended September 30, 1994, compared with $69.4 million reported for the same period in 1993. The substantial increase in this category reflects two large items. The first was the increase in the amortization of intangibles for acquisitions made in 1993 of $2.0 million. The second item was an increase in professional service fees of $3.9 million, this increase is partly due to the recovery of $2.5 million in legal fees in 1993. PART II. - Other Information Items 1 to 5 omitted pursuant to instructions. Item 6 - Exhibits and Reports on Form 8-K (a) The following exhibits are filed herewith: Exhibit #11 - Statement regarding computation of per share earnings. Exhibit #20 - Report furnished to shareholders for the quarter ended June 30, 1994. (b) No Form 8-K filings were made in the third quarter. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date November 10, 1994 BANCORP HAWAII, INC. RICHARD J. DAHL (Signature) Richard J. Dahl President DENIS K. ISONO (Signature) Denis K. Isono Vice President and Chief Accounting Officer EX-11 2 EXHIBIT 11 Bancorp Hawaii, Inc. Exhibit 11 - Statement Regarding Computation of Per Share Earnings Nine Months Ended September 30
Fully Primary Diluted ------------ ------------ 1994 ---------- Net Income $100,514,000 $100,514,000 ============ ============ Daily Average Shares Outstanding 42,425,784 42,425,784 Shares Assumed Issued for Stock Options 518,044 518,044 ------------ ------------ 42,943,828 42,943,828 ============ ============ Earnings Per Common Share and Common Share Equivalents $2.34 $2.34 ============ ============ 1993 ---------- Net Income $96,875,000 $96,875,000 ============ ============ Daily Average Shares Outstanding 42,490,926 42,490,926 Shares Assumed Issued for Stock Options 589,731 589,731 ------------ ------------ 43,080,657 43,080,657 ============ ============ Earnings Per Common Share and Common Share Equivalents $2.25 $2.25 ============ ============
EX-20 3 EXHIBIT 20 To Our Shareholders: For the second quarter of 1994, Bancorp Hawaii, Inc. reported earnings of $34.2 million, a 1.2% increase from second quarter 1993. Earnings per share for the second quarter were $0.79, which matched that of second quarter 1993. For the first half of 1994, Bancorp Hawaii's earnings were $68.6 million, which reflects a 2.7% increase from the first six months of 1993. Return on average assets was 1.10% and return on average equity was 14.40% for the six-month period. Your company's total assets on June 30, 1994 were $12.6 billion, just slightly lower than assets at the same time last year. Deposits and security repurchase agreements were $9.4 billion, down 6.1% from June 30, 1993. Net loans increased 5.2% over the same period to $7.2 billion, from $6.9 billion. Asset quality throughout the year has continued to improve. Total non-performing assets (NPAs) declined to $53.3 million from $66.8 million at first quarter 1994, representing a decline of 20.2%. NPAs dropped 22.5% from the $68.8 million reported on December 31, 1993. NPAs at June 30, 1994 represented 0.71% of total loans. Loan loss reserves at the end of the second quarter were 1.91% of loans outstanding, up from 1.80% reported on March 31, 1994. Bancorp Hawaii's performance for the second quarter, as well as for the first half of 1994 is encouraging and consistent with management's focus on improving asset quality and non-interest income. Hawaii's slow economy, rising interest rates and slow loan demand each had an impact on second quarter earnings. We remain confident that our strength lies in our cautious posture, our commitment to quality and our long-term approach, all of which have contributed to your company's steady financial performance. In the second quarter, Bank of Hawaii, Bancorp's principal subsidiary, opened the first of several in- store banks at Safeway supermarkets in Hawaii. Also, the bank launched a first- time home buyers loan program. These additions to our consumer banking area demonstrate our commitment to offering quality and convenience to our customers. The acquisition of trust holding company American Financial Services, Inc. in 1993 has been a positive one and we are pleased with its ahead-of-schedule blending with Bank of Hawaii trust subsidiary, Hawaiian Trust Company. In the June 30, 1994 issue of American Banker, Bancorp Hawaii ranked 52nd among the nation's top 100 bank holding companies based on discretionary trust assets of $6.4 billion. On July 27, 1994, the Board of Directors declared a quarterly dividend of 26 cents payable on September 15, 1994 to shareholders of record on August 18, 1994. It has been a distinct pleasure to serve as your Chairman and Chief Executive Officer for the past five years. During the 35 years of my career with the company, I have had the honor of working with a management group and staff of the highest caliber who have been totally committed to furthering the reputation of Bancorp Hawaii as the leading financial institution in our markets. Now, as I retire from Bancorp Hawaii, I have every confidence that your new Chairman and Chief Executive Officer Lawrence M. Johnson and President Richard J. Dahl will continue your company along a path of solid financial performance. The managing committee, along with the executive and senior management team, is well-equipped to guide Bancorp Hawaii successfully through a continually changing financial services industry. I look forward to my continuing role as a member of Bancorp Hawaii's Board of Directors. I thank everyone at Bancorp Hawaii, from our tellers to our Board members, for their many contributions to the company. And to you, our shareholders, all of us at Bancorp Hawaii appreciate your continuing support. Aloha, H. HOWARD STEPHENSON H. Howard Stephenson Chairman and Chief Executive Officer July 31, 1994 Corporate Offices: Financial Plaza of the Pacific 130 Merchant Street Honolulu, Hawaii 96813 Investor or Analyst Inquiries: David A. Houle Senior Vice President, Treasurer and Chief Financial Officer (808) 537-8288 or Dale L.I. Suezaki Assistant Vice President and Investor Relations Officer (808) 537-8037 or Ruth E. Miyashiro Corporate Secretary (808) 537-8272 Highlights (Unaudited) Bancorp Hawaii, Inc., and subsidiaries - --------------------------------------------------------------------------------------------------------------------
June 30 June 30 1994 1993 Return on Average Assets* 1.10% 1.06% - -------------------------------------------------------------------------------------------------------------------- Return on Average Equity* 14.40% 15.55% - -------------------------------------------------------------------------------------------------------------------- Average Spread on Earning Assets* 4.03% 3.96% - -------------------------------------------------------------------------------------------------------------------- Book Value Per Common Share $22.63 $20.87 - -------------------------------------------------------------------------------------------------------------------- Loss Reserve/Loans and Leases Outstanding 1.91% 1.87% - -------------------------------------------------------------------------------------------------------------------- Average Equity/Average Assets* 7.61% 6.83% - -------------------------------------------------------------------------------------------------------------------- Common Stock Price Range High Low Dividend 1993.......................... $35.92 $26.67 $0.90 1994 First Quarter............ $31.88 $26.92 $0.26 1994 Second Quarter........... $34.75 $29.38 $0.26 * year-to-date ratio
Consolidated Statements of Income (Unaudited) - --------------------------------------------------------------------------------------------------------------------
3 Months 3 Months 6 Months 6 Months Ended Ended Ended Ended June 30 June 30 June 30 June 30 (in thousands of dollars except per share amounts) 1994 1993 1994 1993 - -------------------------------------------------------------------------------------------------------------------- Total Interest Income $202,868 $202,180 $398,292 $406,334 Total Interest Expense 85,254 85,155 163,043 173,658 - -------------------------------------------------------------------------------------------------------------------- Net Interest Income 117,614 117,025 235,249 232,676 Provision for Possible Loan Losses 5,964 12,204 14,222 21,216 - -------------------------------------------------------------------------------------------------------------------- Net Interest Income After Provision for Possible Loan Losses 111,650 104,821 221,027 211,460 Total Non-Interest Income 33,063 31,034 67,209 58,873 Total Non-Interest Expense 89,749 82,736 177,993 165,246 - -------------------------------------------------------------------------------------------------------------------- Income Before Income Taxes 54,964 53,119 110,243 105,087 Provision for Income Taxes 20,802 19,361 41,689 38,354 - -------------------------------------------------------------------------------------------------------------------- Net Income $34,162 $33,758 $68,554 $66,733 ==================================================================================================================== Earnings Per Common Share and Common Share Equivalents $0.79 $0.79 $1.59 $1.56 - -------------------------------------------------------------------------------------------------------------------- Average Common Shares and Common Share Equivalents Outstanding 43,056,348 42,958,796 43,006,653 42,913,356 - --------------------------------------------------------------------------------------------------------------------
Consolidated Statements of Condition (Unaudited) - --------------------------------------------------------------------------------------------------------------------
June 30 December 31 June 30 (in thousands of dollars) 1994 1993 1993 - -------------------------------------------------------------------------------------------------------------------- Assets Interest-Bearing Deposits $842,255 $837,704 $1,204,563 Investment Securities 3,532,916 3,647,043 3,709,392 (Market Value of $3,491,979, $3,684,781, $3,782,658, respectively) Funds Sold 80,470 57,699 75,572 Loans 7,523,003 7,258,368 7,151,381 Unearned Income (146,163) (149,949) (141,574) Reserve for Possible Loan Losses (141,210) (125,284) (131,249) Net Loans 7,235,630 6,983,135 6,878,558 - -------------------------------------------------------------------------------------------------------------------- Total Earning Assets 11,691,271 11,525,581 11,868,085 Cash and Non-Interest Bearing Deposits 460,935 395,315 398,203 Premises and Equipment 187,710 167,260 159,309 Other Assets 307,384 373,971 320,655 - -------------------------------------------------------------------------------------------------------------------- Total Assets $12,647,300 $12,462,127 $12,746,252 ==================================================================================================================== Liabilities Deposits $7,082,778 $7,004,975 $7,202,427 Securities Sold Under Agreements to Repurchase 2,316,161 2,509,550 2,804,563 Funds Purchased 575,220 743,915 842,100 Short-Term Borrowings 718,228 600,266 426,168 Other Liabilities 399,617 307,447 336,975 Long-Term Debt 595,931 357,870 248,500 - -------------------------------------------------------------------------------------------------------------------- Total Liabilities 11,687,935 11,524,023 11,860,733 Shareholders' Equity Common Stock ($2 par value), authorized 100,000,000 shares; issued/outstanding, June 1994 - 42,396,059; December 1993 - 28,425,038; June 1993 - 28,288,988; 84,792 56,850 56,578 Surplus 276,379 284,886 280,698 Unrealized Valuation Adjustments (15,758) 537 (1,353) Retained Earnings 613,952 595,831 549,596 - -------------------------------------------------------------------------------------------------------------------- Total Shareholders' Equity 959,365 938,104 885,519 - -------------------------------------------------------------------------------------------------------------------- Total Liabilities and Shareholders' Equity $12,647,300 $12,462,127 $12,746,252 ====================================================================================================================
Starting in 1995, Bancorp Hawaii will stop mailing quarterly reports to shareholders whose stock is held in "street name," for example through brokerage houses. Bancorp can more quickly communicate the company's performance through direct mail to these shareholders. If your Bancorp stock is held in "street name" and you wish to continue receiving Bancorp's quarterly reports, please complete the address form and return it to Bancorp. Bancorp shareholders with stock held in their own name are not affected and will continue to receive quarterly reports as usual. Annual reports and proxy materials will continue to be sent to all shareholders. - ---------------------------------------------------------------------- My Bancorp Hawaii stock is held in "street name." Please continue to send me Bancorp Hawaii, Inc., quarterly reports during 1995 at the following address. Please print or type NAME__________________________________________________________________ ADDRESS_______________________________________________________________ CITY___________________________________STATE_____________ZIP__________ TELEPHONE_____________________________________________________________ Clip and mail this form to: Bancorp Hawaii, Inc. Corporate Secretary P. O. Box 2900 Honolulu, Hawaii 96846 EX-27 4
9 1000 9-MOS DEC-31-1994 SEP-30-1994 442695 792196 61250 13805 1159218 2253645 2221072 7639021 143061 12561998 6960775 3545437 332457 745680 84381 0 0 893268 12561998 422418 108193 73951 604562 134938 122644 346980 17253 (2269) 266837 163952 163952 0 0 163952 2.34 2.34 3.95 54212 9165 0 0 125284 19881 20021 143061 0 0 0
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