EX-99.1 2 boh-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

img208590026_0.jpg 

Bank of Hawai‘i Corporation First Quarter 2024 Financial Results

•
Diluted Earnings Per Common Share $0.87
•
Net Income $36.4 Million
•
Board of Directors Declares Dividend of $0.70 Per Common Share

FOR IMMEDIATE RELEASE

 

HONOLULU, HI (April 22, 2024) -- Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $0.87 for the first quarter of 2024, compared with diluted earnings per common share of $0.72 in the previous quarter and $1.14 in the same quarter of 2023. Net income for the first quarter of 2024 was $36.4 million, up 19.7% from the previous quarter and down 22.3% from the same quarter of 2023. The return on average common equity for the first quarter of 2024 was 11.20% compared with 9.55% in the previous quarter and 15.79% in the same quarter of 2023.

 

“Bank of Hawai‘i’s financial performance was solid for the first quarter of 2024,” said Peter Ho, Chairman, President, and CEO. “Credit quality, our hallmark, remained excellent with non-performing assets of 0.09% at quarter end and net charge offs of 0.07% during the quarter. Our net interest margin declined marginally by 2 basis points, while our core noninterest income and noninterest expense remained steady. Average loan growth was steady. Average deposits were down modestly, largely related to lower public deposits and the run-off of Lahaina fire related deposits which ran up in the prior quarter and spent down in the first quarter. All key capital ratios improved in the quarter as we continue to grow capital on the balance sheet.”

 

Financial Highlights

 

Net interest income for the first quarter of 2024 was $113.9 million, a decrease of 1.6% from the previous quarter and a decrease of 16.2% from the same quarter of 2023. The decrease in net interest income in the first quarter of 2024 was primarily due to higher funding costs, partially offset by higher earning asset yields.

 

Net interest margin was 2.11% in the first quarter of 2024, a decrease of 2 basis points from the previous quarter and a decrease of 36 basis points from the same quarter of 2023. The decrease in net interest margin was mainly due to higher funding costs, partially offset by higher earning asset yields.

 

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Bank of Hawai‘i Corporation First Quarter 2024 Financial Results

Page 2

 

The average yield on loans and leases was 4.63% in the first quarter of 2024, up 9 basis points from the prior quarter and up 60 basis points from the same quarter of 2023. The average yield on total earning assets was 3.89% in the first quarter of 2024, up 4 basis points from the prior quarter and up 47 basis points from the same quarter of 2023. The average cost of interest-bearing deposits was 2.39% in the first quarter of 2024, up 9 basis points from the prior quarter and up 130 basis points from the same quarter of 2023. The average cost of total deposits, including noninterest-bearing deposits, was 1.74%, up 7 basis points from the prior quarter and up 99 basis points from the same quarter of 2023. The changes in yields and rates over the linked quarter and year over year period reflected the higher rate environment.

Noninterest income was $42.3 million in the first quarter of 2024, flat from the previous quarter and an increase of 3.8% from the same period in 2023. Noninterest income in the first quarter of 2023 included a negative adjustment of $0.6 million related to a change in the Visa B conversion ratio. Adjusted for this item, noninterest income increased by 2.4% from adjusted noninterest income in the same period in 2023.

Noninterest expense was $105.9 million in the first quarter of 2024, a decrease of 8.7% from the previous quarter and a decrease of 5.4% from the same quarter of 2023. Noninterest expense in the first quarter of 2024 included seasonal payroll expense of approximately $2.2 million and separation expenses of $0.5 million. Noninterest expense in the fourth quarter of 2023 included an industry-wide FDIC Special Assessment of $14.7 million and $1.7 million of expense savings that are not expected to recur in 2024. Noninterest expense in the first quarter of 2023 included seasonal payroll expenses of approximately $4.0 million and separation expenses of $3.1 million. Adjusted for these items, noninterest expense for the first quarter of 2024 was $103.2 million, up 0.3% from adjusted noninterest expense in the previous quarter and down 1.6% from adjusted noninterest expense in the same period in 2023.

The effective tax rate for the first quarter of 2024 was 24.76% compared with 23.25% in the previous quarter and 25.38% during the same quarter of 2023. The higher effective tax rate in the first quarter of 2024 as compared to the previous quarter was mainly due to discrete items. The lower effective tax rate in the first quarter of 2024 as compared to the same period in 2023 was due to an increase in tax exempt income and tax benefits from low-income housing investments.

Asset Quality

The Company’s overall asset quality remained strong during the first quarter of 2024. Provision for credit losses for the first quarter of 2024 was $2.0 million compared with $2.5 million in the previous quarter and $2.0 million in the same quarter of 2023.

 

Total non-performing assets were $11.8 million at March 31, 2024, up $0.1 million from December 31, 2023 and down $0.3 million from March 31, 2023. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.09% at the end of the quarter, an increase of 1 basis point from the end of the prior quarter and flat from the same quarter of 2023.

Net loan and lease charge-offs during the first quarter of 2024 were $2.3 million or 7 basis points annualized of total average loans and leases outstanding. Net loan and lease charge-offs for the first quarter of 2024 were comprised of charge-offs of $3.8 million partially offset by recoveries of $1.5 million. Compared to the prior quarter, net loan and lease charge-offs increased by $0.6 million or 2 basis points annualized on total average loans and leases outstanding. Compared to the same quarter of 2023, net loan and lease charge-offs decreased by $0.4 million or 1 basis point annualized on total average loans and leases outstanding.

 

 

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Bank of Hawai‘i Corporation First Quarter 2024 Financial Results

Page 3

 

The allowance for credit losses on loans and leases was $147.7 million at March 31, 2024, an increase of $1.3 million from December 31, 2023 and an increase of $4.1 million from March 31, 2023. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.07% at the end of the quarter, up 2 basis points from the end of the prior quarter and up 3 basis points from the same quarter of 2023.

 

Balance Sheet

Total assets were $23.4 billion at March 31, 2024, a decrease of 1.3% from December 31, 2023 and a decrease of 2.1% from March 31, 2023. The decrease from the prior quarter was due to decreases in investment securities and loans and leases. The decrease from the same period in 2023 was primarily due to a decrease in our investment securities.

The investment securities portfolio was $7.3 billion at March 31, 2024, a decrease of 1.9% from December 31, 2023 and a decrease of 10.6% from March 31, 2023. This linked quarter decrease was primarily due to cashflows from the portfolio not being reinvested into securities. The decrease from the same quarter of 2023 was due to the sale of $159.1 million of investment securities in the third quarter of 2023, as well as 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 March 31, 2024, a decrease of 0.8% from December 31, 2023 and an increase of 0.2% from March 31, 2023. Total commercial loans were $5.8 billion at March 31, 2024, flat from the prior quarter and an increase of 3.8% from the same quarter of 2023. The increase from the same period in 2023 was primarily due to increases in our commercial and industrial and construction portfolios, partially offset by a decrease in our commercial mortgage portfolio. Total consumer loans were $8.1 billion as of March 31, 2024, a decrease of 1.3% from the prior quarter and a decrease of 2.2% from the same period in 2023. The decreases were primarily due to decreases in our residential mortgage and automobile portfolios.

Total deposits were $20.7 billion at March 31, 2024, a decrease of 1.8% from December 31, 2023 and an increase of 0.9% from March 31, 2023. Noninterest-bearing deposits made up 27% of total deposit balances as of March 31, 2024, down from 29% as of December 31, 2023, and down from 31% as of March 31, 2023. Average total deposits were $20.5 billion for the first quarter of 2024, down 0.8% from $20.7 billion in the prior quarter, and up 0.6% from $20.4 billion in the first quarter of 2023. As of March 31, 2024, insured and uninsured but collateralized deposits represent 58% of total deposit balances, flat from both December 31, 2023, and March 31, 2023. As of March 31, 2024, our readily available liquidity of $10.3 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 12.74% at March 31, 2024 compared with 12.56% at December 31, 2023 and 12.10% at March 31, 2023. The Tier 1 Leverage Ratio was 7.62% at March 31, 2024, up 11 basis point from 7.51% at December 31, 2023 and up 43 basis points from 7.19% at March 31, 2023. The increases were due to higher Tier 1 capital as a result of retained earnings growth and decreases in risk-weighted assets and average total assets.

 

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Bank of Hawai‘i Corporation First Quarter 2024 Financial Results

Page 4

 

No shares of common stock were repurchased under the share repurchase program in the first quarter of 2024. Total remaining buyback authority under the share repurchase program was $126.0 million at March 31, 2024.

 

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 June 14, 2024 to shareholders of record at the close of business on May 31, 2024.

 

On April 5, 2024, 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 May 1, 2024 to shareholders of record of the preferred stock as of the close of business on April 16, 2024.

 

Conference Call Information

 

The Company will review its first 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/BI974c97b30bcc401eb3a5fd9d0973e44c. A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawai‘i Time on Monday, April 22, 2024. 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, 2023 which was 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

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

(dollars in thousands, except per share amounts)

2024

 

 

2023

 

 

2023

 

 

For the Period:

 

 

 

 

 

 

 

 

 

Operating Results

 

 

 

 

 

 

 

 

 

Net Interest Income

$

113,938

 

 

$

115,785

 

 

$

135,955

 

 

Provision for Credit Losses

 

2,000

 

 

 

2,500

 

 

 

2,000

 

 

Total Noninterest Income

 

42,285

 

 

 

42,283

 

 

 

40,737

 

 

Total Noninterest Expense

 

105,859

 

 

 

115,962

 

 

 

111,919

 

 

Pre-Provision Net Revenue

 

50,364

 

 

 

42,106

 

 

 

64,773

 

 

Net Income

 

36,391

 

 

 

30,396

 

 

 

46,842

 

 

Net Income Available to Common Shareholders 1

 

34,422

 

 

 

28,427

 

 

 

44,873

 

 

Basic Earnings Per Common Share

 

0.87

 

 

 

0.72

 

 

 

1.14

 

 

Diluted Earnings Per Common Share

 

0.87

 

 

 

0.72

 

 

 

1.14

 

 

Dividends Declared Per Common Share

 

0.70

 

 

 

0.70

 

 

 

0.70

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios

 

 

 

 

 

 

 

 

 

Return on Average Assets

 

0.63

 

%

 

0.51

 

%

 

0.80

 

%

Return on Average Shareholders' Equity

 

10.34

 

 

 

8.86

 

 

 

14.25

 

 

Return on Average Common Equity

 

11.20

 

 

 

9.55

 

 

 

15.79

 

 

Efficiency Ratio 2

 

67.76

 

 

 

73.36

 

 

 

63.34

 

 

Net Interest Margin 3

 

2.11

 

 

 

2.13

 

 

 

2.47

 

 

Dividend Payout Ratio 4

 

80.46

 

 

 

97.22

 

 

 

61.40

 

 

Average Shareholders' Equity to Average Assets

 

6.08

 

 

 

5.80

 

 

 

5.59

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances

 

 

 

 

 

 

 

 

 

Average Loans and Leases

$

13,868,800

 

 

$

13,906,114

 

 

$

13,717,483

 

 

Average Assets

 

23,281,566

 

 

 

23,449,215

 

 

 

23,865,478

 

 

Average Deposits

 

20,543,640

 

 

 

20,704,070

 

 

 

20,430,882

 

 

Average Shareholders' Equity

 

1,416,102

 

 

 

1,360,641

 

 

 

1,332,889

 

 

 

 

 

 

 

 

 

 

 

 

Per Share of Common Stock

 

 

 

 

 

 

 

 

 

Book Value

$

31.62

 

 

$

31.05

 

 

$

29.62

 

 

Tangible Book Value

 

30.83

 

 

 

30.25

 

 

 

28.83

 

 

Market Value

 

 

 

 

 

 

 

 

 

   Closing

 

62.39

 

 

 

72.46

 

 

 

52.08

 

 

   High

 

73.73

 

 

 

75.19

 

 

 

81.73

 

 

   Low

 

58.38

 

 

 

45.56

 

 

 

34.71

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

2024

 

 

2023

 

 

2023

 

 

As of Period End:

 

 

 

 

 

 

 

 

 

Balance Sheet Totals

 

 

 

 

 

 

 

 

 

Loans and Leases

$

13,853,837

 

 

$

13,965,026

 

 

$

13,824,522

 

 

Total Assets

 

23,420,860

 

 

 

23,733,296

 

 

 

23,931,977

 

 

Total Deposits

 

20,676,586

 

 

 

21,055,045

 

 

 

20,491,300

 

 

Other Debt

 

560,163

 

 

 

560,190

 

 

 

510,269

 

 

Total Shareholders' Equity

 

1,435,977

 

 

 

1,414,242

 

 

 

1,354,430

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

Non-Performing Assets

$

11,838

 

 

$

11,747

 

 

$

12,124

 

 

Allowance for Credit Losses - Loans and Leases

 

147,664

 

 

 

146,403

 

 

 

143,577

 

 

Allowance to Loans and Leases Outstanding 5

 

1.07

 

%

 

1.05

 

%

 

1.04

 

%

 

 

 

 

 

 

 

 

 

 

Capital Ratios 6

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital Ratio

 

11.50

 

%

 

11.33

 

%

 

10.88

 

%

Tier 1 Capital Ratio

 

12.74

 

 

 

12.56

 

 

 

12.10

 

 

Total Capital Ratio

 

13.81

 

 

 

13.60

 

 

 

13.13

 

 

Tier 1 Leverage Ratio

 

7.62

 

 

 

7.51

 

 

 

7.19

 

 

Total Shareholders' Equity to Total Assets

 

6.13

 

 

 

5.96

 

 

 

5.66

 

 

Tangible Common Equity to Tangible Assets 7

 

5.24

 

 

 

5.07

 

 

 

4.78

 

 

Tangible Common Equity to Risk-Weighted Assets 7

 

8.70

 

 

 

8.45

 

 

 

7.97

 

 

 

 

 

 

 

 

 

 

 

 

Non-Financial Data

 

 

 

 

 

 

 

 

 

Full-Time Equivalent Employees

 

1,891

 

 

 

1,899

 

 

 

2,025

 

 

Branches

 

50

 

 

 

51

 

 

 

51

 

 

ATMs

 

315

 

 

 

318

 

 

 

320

 

 

 

 

 

 

 

 

 

 

 

 

1  Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.

2  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).

3  Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.

4  Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.

5  The numerator comprises the Allowance for Credit Losses - Loans and Leases.

6  Regulatory capital ratios as of March 31, 2024 are preliminary.

7  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

 

 

March 31,

 

December 31,

 

March 31,

 

(dollars in thousands)

2024

 

2023

 

2023

 

 

 

 

 

 

 

Total Shareholders' Equity

$

1,435,977

 

$

1,414,242

 

$

1,354,430

 

Less: Preferred Stock

 

180,000

 

 

180,000

 

 

180,000

 

          Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

Tangible Common Equity

$

1,224,460

 

$

1,202,725

 

$

1,142,913

 

 

 

 

 

 

 

Total Assets

$

23,420,860

 

$

23,733,296

 

$

23,931,977

 

Less: Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

Tangible Assets

$

23,389,343

 

$

23,701,779

 

$

23,900,460

 

 

 

 

 

 

 

Risk-Weighted Assets, determined in accordance

 

 

 

 

 

 

     with prescribed regulatory requirements 1

$

14,071,841

 

$

14,226,780

 

$

14,341,397

 

 

 

 

 

 

 

Total Shareholders' Equity to Total Assets

 

6.13

%

 

5.96

%

 

5.66

%

Tangible Common Equity to Tangible Assets (Non-GAAP)

 

5.24

%

 

5.07

%

 

4.78

%

 

 

 

 

 

 

Tier 1 Capital Ratio 1

 

12.74

%

 

12.56

%

 

12.10

%

Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1

 

8.70

%

 

8.45

%

 

7.97

%

 

 

 

 

 

 

 

1  Regulatory capital ratios as of March 31, 2024 are preliminary.

 

 

 

 

 

 

 

 

 

 

 

Bank of Hawai‘i Corporation and Subsidiaries

 

 

Consolidated Statements of Income

 

Table 3

 

Three Months Ended

 

 

 

March 31,

 

December 31,

 

March 31,

 

 

(dollars in thousands, except per share amounts)

2024

 

2023

 

2023

 

 

Interest Income

 

 

 

 

 

 

 

Interest and Fees on Loans and Leases

$

159,336

 

$

158,324

 

$

136,501

 

 

Income on Investment Securities

 

 

 

 

 

 

 

Available-for-Sale

 

21,757

 

 

22,782

 

 

23,893

 

 

Held-to-Maturity

 

22,136

 

 

22,589

 

 

23,948

 

 

Deposits

 

30

 

 

23

 

 

27

 

 

Funds Sold

 

6,127

 

 

5,705

 

 

3,366

 

 

Other

 

970

 

 

924

 

 

597

 

 

Total Interest Income

 

210,356

 

 

210,347

 

 

188,332

 

 

Interest Expense

 

 

 

 

 

 

 

Deposits

 

89,056

 

 

87,121

 

 

37,794

 

 

Securities Sold Under Agreements to Repurchase

 

1,443

 

 

1,459

 

 

5,377

 

 

Funds Purchased

 

-

 

 

-

 

 

704

 

 

Short-Term Borrowings

 

-

 

 

-

 

 

3,203

 

 

Other Debt

 

5,919

 

 

5,982

 

 

5,299

 

 

Total Interest Expense

 

96,418

 

 

94,562

 

 

52,377

 

 

Net Interest Income

 

113,938

 

 

115,785

 

 

135,955

 

 

Provision for Credit Losses

 

2,000

 

 

2,500

 

 

2,000

 

 

Net Interest Income After Provision for Credit Losses

 

111,938

 

 

113,285

 

 

133,955

 

 

Noninterest Income

 

 

 

 

 

 

 

Trust and Asset Management

 

11,189

 

 

11,144

 

 

10,690

 

 

Mortgage Banking

 

951

 

 

1,016

 

 

1,004

 

 

Service Charges on Deposit Accounts

 

7,947

 

 

7,949

 

 

7,737

 

 

Fees, Exchange, and Other Service Charges

 

14,123

 

 

13,774

 

 

13,808

 

 

Investment Securities Losses, Net

 

(1,497

)

 

(1,619

)

 

(1,792

)

 

Annuity and Insurance

 

1,046

 

 

1,271

 

 

1,271

 

 

Bank-Owned Life Insurance

 

3,356

 

 

3,176

 

 

2,842

 

 

Other

 

5,170

 

 

5,572

 

 

5,177

 

 

Total Noninterest Income

 

42,285

 

 

42,283

 

 

40,737

 

 

Noninterest Expense

 

 

 

 

 

 

 

Salaries and Benefits

 

58,215

 

 

53,991

 

 

65,088

 

 

Net Occupancy

 

10,456

 

 

9,734

 

 

9,872

 

 

Net Equipment

 

10,103

 

 

9,826

 

 

10,375

 

 

Data Processing

 

4,770

 

 

4,948

 

 

4,583

 

 

Professional Fees

 

4,677

 

 

5,079

 

 

3,883

 

 

FDIC Insurance

 

3,614

 

 

18,545

 

 

3,234

 

 

Other

 

14,024

 

 

13,839

 

 

14,884

 

 

Total Noninterest Expense

 

105,859

 

 

115,962

 

 

111,919

 

 

Income Before Provision for Income Taxes

 

48,364

 

 

39,606

 

 

62,773

 

 

Provision for Income Taxes

 

11,973

 

 

9,210

 

 

15,931

 

 

Net Income

$

36,391

 

$

30,396

 

$

46,842

 

 

Preferred Stock Dividends

 

1,969

 

 

1,969

 

 

1,969

 

 

Net Income Available to Common Shareholders

$

34,422

 

$

28,427

 

$

44,873

 

 

Basic Earnings Per Common Share

$

0.87

 

$

0.72

 

$

1.14

 

 

Diluted Earnings Per Common Share

$

0.87

 

$

0.72

 

$

1.14

 

 

Dividends Declared Per Common Share

$

0.70

 

$

0.70

 

$

0.70

 

 

Basic Weighted Average Common Shares

 

39,350,390

 

 

39,303,525

 

 

39,276,833

 

 

Diluted Weighted Average Common Shares

 

39,626,463

 

 

39,539,191

 

 

39,465,889

 

 

 

 

 

 

Bank of Hawai‘i Corporation and Subsidiaries

 

Consolidated Statements of Comprehensive Income

 

 

 

Table 4

 

 

Three Months Ended

 

 

 

March 31,

 

December 31,

 

March 31,

 

(dollars in thousands)

 

2024

 

2023

 

2023

 

Net Income

$

36,391

$

30,396

$

46,842

 

Other Comprehensive Income, Net of Tax:

 

 

 

 

 

 

 

Net Unrealized Gains on Investment Securities

 

12,938

 

43,357

 

29,276

 

Defined Benefit Plans

 

169

 

1,566

 

84

 

Other Comprehensive Income

 

13,107

 

44,923

 

29,360

 

Comprehensive Income

$

49,498

$

75,319

$

76,202

 

 

 

 

 

Bank of Hawai‘i Corporation and Subsidiaries

 

 

 

 

 

Consolidated Statements of Condition

 

 

 

Table 5

 

 

March 31,

 

December 31,

 

March 31,

 

(dollars in thousands)

2024

 

2023

 

2023

 

Assets

 

 

 

 

 

 

Interest-Bearing Deposits in Other Banks

$

2,742

 

$

2,761

 

$

2,554

 

Funds Sold

 

673,489

 

 

690,112

 

 

272,018

 

Investment Securities

 

 

 

 

 

 

      Available-for-Sale

 

2,352,051

 

 

2,408,933

 

 

2,815,083

 

      Held-to-Maturity (Fair Value of $4,104,622; $4,253,637; and $4,601,876)

 

4,913,457

 

 

4,997,335

 

 

5,312,815

 

Loans Held for Sale

 

2,182

 

 

3,124

 

 

2,149

 

Loans and Leases

 

13,853,837

 

 

13,965,026

 

 

13,824,522

 

      Allowance for Credit Losses

 

(147,664

)

 

(146,403

)

 

(143,577

)

             Net Loans and Leases

 

13,706,173

 

 

13,818,623

 

 

13,680,945

 

Total Earning Assets

 

21,650,094

 

 

21,920,888

 

 

22,085,564

 

Cash and Due from Banks

 

215,290

 

 

308,071

 

 

337,413

 

Premises and Equipment, Net

 

192,486

 

 

194,855

 

 

203,131

 

Operating Lease Right-of-Use Assets

 

85,501

 

 

86,110

 

 

91,387

 

Accrued Interest Receivable

 

67,887

 

 

66,525

 

 

63,175

 

Foreclosed Real Estate

 

2,672

 

 

2,098

 

 

1,040

 

Mortgage Servicing Rights

 

20,422

 

 

20,880

 

 

22,102

 

Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

Bank-Owned Life Insurance

 

468,206

 

 

462,894

 

 

455,602

 

Other Assets

 

686,785

 

 

639,458

 

 

641,046

 

Total Assets

$

23,420,860

 

$

23,733,296

 

$

23,931,977

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

   Noninterest-Bearing Demand

$

5,542,930

 

$

6,058,554

 

$

6,385,872

 

   Interest-Bearing Demand

 

3,823,224

 

 

3,749,717

 

 

4,283,801

 

   Savings

 

8,231,245

 

 

8,189,472

 

 

7,898,874

 

   Time

 

3,079,187

 

 

3,057,302

 

 

1,922,753

 

Total Deposits

 

20,676,586

 

 

21,055,045

 

 

20,491,300

 

Short-Term Borrowings

 

-

 

 

-

 

 

325,000

 

Securities Sold Under Agreements to Repurchase

 

150,490

 

 

150,490

 

 

725,490

 

Other Debt

 

560,163

 

 

560,190

 

 

510,269

 

Operating Lease Liabilities

 

94,104

 

 

94,693

 

 

99,746

 

Retirement Benefits Payable

 

23,365

 

 

23,673

 

 

26,768

 

Accrued Interest Payable

 

37,081

 

 

41,023

 

 

13,061

 

Taxes Payable

 

7,378

 

 

7,636

 

 

11,039

 

Other Liabilities

 

435,716

 

 

386,304

 

 

374,874

 

Total Liabilities

 

21,984,883

 

 

22,319,054

 

 

22,577,547

 

Shareholders' Equity

 

 

 

 

 

 

Preferred Stock ($.01 par value; authorized 180,000 shares;

 

 

 

 

 

 

      issued / outstanding: March 31, 2024; December 31, 2023;

 

 

 

 

 

 

     and March 31, 2023 - 180,000)

 

180,000

 

 

180,000

 

 

180,000

 

Common Stock ($.01 par value; authorized 500,000,000 shares;

 

 

 

 

 

 

      issued / outstanding: March 31, 2024 - 58,753,708 / 39,720,724;

 

 

 

 

 

 

      December 31, 2023 - 58,755,465 / 39,753,138; and March 31, 2023 - 58,722,929 / 39,646,506)

 

584

 

 

583

 

 

583

 

Capital Surplus

 

640,663

 

 

636,422

 

 

624,126

 

Accumulated Other Comprehensive Loss

 

(383,581

)

 

(396,688

)

 

(405,298

)

Retained Earnings

 

2,114,729

 

 

2,107,569

 

 

2,074,428

 

Treasury Stock, at Cost (Shares: March 31, 2024 - 19,032,984; December 31, 2023 - 19,002,327;

 

 

 

 

 

 

      and March 31, 2023 - 19,076,423)

 

(1,116,418

)

 

(1,113,644

)

 

(1,119,409

)

Total Shareholders' Equity

 

1,435,977

 

 

1,414,242

 

 

1,354,430

 

Total Liabilities and Shareholders' Equity

$

23,420,860

 

$

23,733,296

 

$

23,931,977

 

 

 

 

 

 

 

Bank of Hawai‘i Corporation and Subsidiaries

 

 

 

 

 

Consolidated Statements of Shareholders' Equity

 

 

 

Table 6

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

Preferred

 

 

 

Common

 

 

 

 

 

Comprehensive

 

 

 

 

 

 

 

 

Shares

 

Preferred

 

Shares

 

Common

 

Capital

 

Income

 

Retained

 

Treasury

 

 

 

(dollars in thousands)

Outstanding

 

Stock

 

Outstanding

 

Stock

 

Surplus

 

(Loss)

 

Earnings

 

Stock

 

Total

 

Balance as of December 31, 2023

 

180,000

 

$

180,000

 

 

39,753,138

 

$

583

 

$

636,422

 

$

(396,688

)

$

2,107,569

 

$

(1,113,644

)

$

1,414,242

 

Net Income

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

36,391

 

 

-

 

 

36,391

 

Other Comprehensive Income

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

13,107

 

 

-

 

 

-

 

 

13,107

 

Share-Based Compensation

 

-

 

 

-

 

 

-

 

 

-

 

 

4,030

 

 

-

 

 

-

 

 

-

 

 

4,030

 

Common Stock Issued under Purchase and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Equity Compensation Plans

 

-

 

 

-

 

 

21,332

 

 

1

 

 

211

 

 

-

 

 

794

 

 

546

 

 

1,552

 

Common Stock Repurchased

 

-

 

 

-

 

 

(53,746

)

 

-

 

 

-

 

 

-

 

 

-

 

 

(3,320

)

 

(3,320

)

Cash Dividends Declared Common Stock ($0.70 per share)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(28,056

)

 

-

 

 

(28,056

)

Cash Dividends Declared Preferred Stock

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(1,969

)

 

-

 

 

(1,969

)

Balance as of March 31, 2024

 

180,000

 

$

180,000

 

 

39,720,724

 

$

584

 

$

640,663

 

$

(383,581

)

$

2,114,729

 

$

(1,116,418

)

$

1,435,977

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

46,842

 

 

-

 

 

46,842

 

Other Comprehensive Income

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

29,360

 

 

-

 

 

-

 

 

29,360

 

Share-Based Compensation

 

-

 

 

-

 

 

-

 

 

-

 

 

3,371

 

 

-

 

 

-

 

 

-

 

 

3,371

 

Common Stock Issued under Purchase and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Equity Compensation Plans

 

-

 

 

-

 

 

13,164

 

 

1

 

 

177

 

 

-

 

 

1,587

 

 

(197

)

 

1,568

 

Common Stock Repurchased

 

-

 

 

-

 

 

(202,408

)

 

-

 

 

-

 

 

-

 

 

-

 

 

(13,793

)

 

(13,793

)

Cash Dividends Declared Common Stock ($0.70 per share)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(27,944

)

 

-

 

 

(27,944

)

Cash Dividends Declared Preferred Stock

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(1,969

)

 

-

 

 

(1,969

)

Balance as of March 31, 2023

 

180,000

 

$

180,000

 

 

39,646,506

 

$

583

 

$

624,126

 

$

(405,298

)

$

2,074,428

 

$

(1,119,409

)

$

1,354,430

 

 

 

 

 

 

 

Bank of Hawai‘i Corporation and Subsidiaries

 

 

 

 

 

 

Average Balances and Interest Rates - Taxable-Equivalent Basis 1

 

Table 7

 

Three Months Ended

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

March 31, 2024

 

 

December 31, 2023

 

 

March 31, 2023

 

 

 

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

$

4.8

 

$

-

 

 

2.51

 

%

$

4.3

 

$

-

 

 

2.08

 

%

$

1.7

 

$

-

 

 

6.25

 

%

Funds Sold

 

455.9

 

 

6.1

 

 

5.32

 

 

 

415.0

 

 

5.7

 

 

5.38

 

 

 

295.9

 

 

3.4

 

 

4.55

 

 

Investment Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Taxable

 

2,380.4

 

 

21.8

 

 

3.66

 

 

 

2,362.4

 

 

22.8

 

 

3.84

 

 

 

2,820.3

 

 

23.8

 

 

3.40

 

 

     Non-Taxable

 

1.7

 

 

-

 

 

1.99

 

 

 

1.8

 

 

-

 

 

1.90

 

 

 

9.6

 

 

0.1

 

 

4.38

 

 

Held-to-Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Taxable

 

4,926.8

 

 

21.9

 

 

1.79

 

 

 

5,013.6

 

 

22.4

 

 

1.79

 

 

 

5,336.2

 

 

23.8

 

 

1.78

 

 

     Non-Taxable

 

34.7

 

 

0.2

 

 

2.10

 

 

 

34.9

 

 

0.2

 

 

2.10

 

 

 

35.3

 

 

0.2

 

 

2.10

 

 

Total Investment Securities

 

7,343.6

 

 

43.9

 

 

2.40

 

 

 

7,412.7

 

 

45.4

 

 

2.45

 

 

 

8,201.4

 

 

47.9

 

 

2.34

 

 

Loans Held for Sale

 

2.2

 

 

-

 

 

6.17

 

 

 

3.8

 

 

0.1

 

 

6.89

 

 

 

1.5

 

 

-

 

 

5.30

 

 

Loans and Leases 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

1,652.5

 

 

22.0

 

 

5.36

 

 

 

1,603.5

 

 

21.3

 

 

5.27

 

 

 

1,411.4

 

 

16.2

 

 

4.67

 

 

Paycheck Protection Program

 

10.8

 

 

-

 

 

1.40

 

 

 

11.9

 

 

-

 

 

1.36

 

 

 

16.9

 

 

0.1

 

 

2.35

 

 

Commercial Mortgage

 

3,716.6

 

 

50.5

 

 

5.46

 

 

 

3,760.1

 

 

51.5

 

 

5.42

 

 

 

3,736.9

 

 

45.1

 

 

4.90

 

 

Construction

 

307.9

 

 

5.6

 

 

7.27

 

 

 

279.5

 

 

4.8

 

 

6.84

 

 

 

280.4

 

 

3.9

 

 

5.65

 

 

Commercial Lease Financing

 

58.4

 

 

0.3

 

 

1.87

 

 

 

60.1

 

 

0.3

 

 

1.95

 

 

 

66.9

 

 

-

 

 

(0.14

)

 

Residential Mortgage

 

4,649.9

 

 

45.0

 

 

3.87

 

 

 

4,676.0

 

 

45.1

 

 

3.86

 

 

 

4,666.0

 

 

39.9

 

 

3.42

 

 

Home Equity

 

2,250.1

 

 

21.1

 

 

3.78

 

 

 

2,276.2

 

 

20.9

 

 

3.65

 

 

 

2,239.4

 

 

18.2

 

 

3.30

 

 

Automobile

 

831.0

 

 

8.9

 

 

4.30

 

 

 

845.7

 

 

8.6

 

 

4.02

 

 

 

871.8

 

 

7.3

 

 

3.37

 

 

Other 4

 

391.6

 

 

6.5

 

 

6.66

 

 

 

393.1

 

 

6.3

 

 

6.40

 

 

 

427.8

 

 

6.2

 

 

5.83

 

 

Total Loans and Leases

 

13,868.8

 

 

159.9

 

 

4.63

 

 

 

13,906.1

 

 

158.8

 

 

4.54

 

 

 

13,717.5

 

 

136.9

 

 

4.03

 

 

Other

 

62.3

 

 

1.1

 

 

6.23

 

 

 

60.0

 

 

1.0

 

 

6.16

 

 

 

67.2

 

 

0.6

 

 

3.56

 

 

Total Earning Assets

 

21,737.6

 

 

211.0

 

 

3.89

 

 

 

21,801.9

 

 

211.0

 

 

3.85

 

 

 

22,285.2

 

 

188.8

 

 

3.42

 

 

Cash and Due from Banks

 

240.8

 

 

 

 

 

 

 

243.8

 

 

 

 

 

 

 

319.1

 

 

 

 

 

 

Other Assets

 

1,303.2

 

 

 

 

 

 

 

1,403.5

 

 

 

 

 

 

 

1,261.2

 

 

 

 

 

 

Total Assets

$

23,281.6

 

 

 

 

 

 

$

23,449.2

 

 

 

 

 

 

$

23,865.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand

$

3,764.2

 

 

7.7

 

 

0.82

 

 

$

3,737.3

 

 

7.7

 

 

0.82

 

 

$

4,215.9

 

 

5.2

 

 

0.50

 

 

Savings

 

8,131.3

 

 

49.4

 

 

2.44

 

 

 

8,441.0

 

 

51.1

 

 

2.40

 

 

 

8,009.0

 

 

20.6

 

 

1.05

 

 

Time

 

3,081.1

 

 

32.0

 

 

4.18

 

 

 

2,830.0

 

 

28.3

 

 

3.97

 

 

 

1,789.9

 

 

12.0

 

 

2.71

 

 

Total Interest-Bearing Deposits

 

14,976.6

 

 

89.1

 

 

2.39

 

 

 

15,008.3

 

 

87.1

 

 

2.30

 

 

 

14,014.8

 

 

37.8

 

 

1.09

 

 

Funds Purchased

 

-

 

 

-

 

 

-

 

 

 

-

 

 

-

 

 

-

 

 

 

60.4

 

 

0.7

 

 

4.66

 

 

Short-Term Borrowings

 

-

 

 

-

 

 

-

 

 

 

-

 

 

-

 

 

-

 

 

 

265.0

 

 

3.2

 

 

4.84

 

 

Securities Sold Under Agreements to Repurchase

 

150.5

 

 

1.4

 

 

3.79

 

 

 

150.5

 

 

1.5

 

 

3.79

 

 

 

725.5

 

 

5.4

 

 

2.96

 

 

Other Debt

 

560.1

 

 

5.9

 

 

4.25

 

 

 

560.2

 

 

6.0

 

 

4.24

 

 

 

499.6

 

 

5.3

 

 

4.30

 

 

Total Interest-Bearing Liabilities

 

15,687.2

 

 

96.4

 

 

2.47

 

 

 

15,719.0

 

 

94.6

 

 

2.39

 

 

 

15,565.3

 

 

52.4

 

 

1.36

 

 

Net Interest Income

 

 

$

114.6

 

 

 

 

 

 

$

116.4

 

 

 

 

 

 

$

136.4

 

 

 

 

Interest Rate Spread

 

 

 

 

 

1.42

 

 %

 

 

 

 

 

1.46

 

 %

 

 

 

 

 

2.06

 

 %

Net Interest Margin

 

 

 

 

 

2.11

 

 %

 

 

 

 

 

2.13

 

 %

 

 

 

 

 

2.47

 

 %

Noninterest-Bearing Demand Deposits

 

5,567.0

 

 

 

 

 

 

 

5,695.8

 

 

 

 

 

 

 

6,416.1

 

 

 

 

 

 

Other Liabilities

 

611.3

 

 

 

 

 

 

 

673.8

 

 

 

 

 

 

 

551.2

 

 

 

 

 

 

Shareholders' Equity

 

1,416.1

 

 

 

 

 

 

 

1,360.6

 

 

 

 

 

 

 

1,332.9

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

$

23,281.6

 

 

 

 

 

 

$

23,449.2

 

 

 

 

 

 

$

23,865.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 $690,000, $605,000, and $495,000

    for the three months ended March 31, 2024, December 31, 2023, and March 31, 2023, 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 March 31, 2024

 

 

Compared to December 31, 2023

 

(dollars in millions)

Volume 1

 

Rate 1

 

Total

 

Change in Interest Income:

 

 

 

 

 

 

Funds Sold

$

0.5

 

$

(0.1

)

$

0.4

 

Investment Securities

 

 

 

 

 

 

   Available-for-Sale

 

 

 

 

 

 

      Taxable

 

(0.4

)

 

(0.6

)

 

(1.0

)

   Held-to-Maturity

 

 

 

 

 

 

      Taxable

 

(0.4

)

 

(0.1

)

 

(0.5

)

Total Investment Securities

 

(0.8

)

 

(0.7

)

 

(1.5

)

Loans Held for Sale

 

(0.1

)

 

-

 

 

(0.1

)

Loans and Leases

 

 

 

 

 

 

   Commercial and Industrial

 

0.4

 

 

0.3

 

 

0.7

 

   Commercial Mortgage

 

(1.0

)

 

-

 

 

(1.0

)

   Construction

 

0.5

 

 

0.3

 

 

0.8

 

   Residential Mortgage

 

(0.3

)

 

0.2

 

 

(0.1

)

   Home Equity

 

(0.3

)

 

0.5

 

 

0.2

 

   Automobile

 

(0.2

)

 

0.5

 

 

0.3

 

   Other 2

 

-

 

 

0.2

 

 

0.2

 

Total Loans and Leases

 

(0.9

)

 

2.0

 

 

1.1

 

Other

 

0.1

 

 

-

 

 

0.1

 

Total Change in Interest Income

 

(1.2

)

 

1.2

 

 

-

 

 

 

 

 

 

 

Change in Interest Expense:

 

 

 

 

 

 

Interest-Bearing Deposits

 

 

 

 

 

 

   Savings

 

(2.3

)

 

0.6

 

 

(1.7

)

   Time

 

2.3

 

 

1.4

 

 

3.7

 

Total Interest-Bearing Deposits

 

-

 

 

2.0

 

 

2.0

 

Securities Sold Under Agreements to Repurchase

 

-

 

 

(0.1

)

 

(0.1

)

Other Debt

 

-

 

 

(0.1

)

 

(0.1

)

Total Change in Interest Expense

 

-

 

 

1.8

 

 

1.8

 

 

 

 

 

 

 

 

Change in Net Interest Income

$

(1.2

)

$

(0.6

)

$

(1.8

)

 

 

 

 

 

 

 

1  The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

 

2  Comprised of other consumer revolving credit, installment, and consumer lease financing.

 

 

 

 

 

Bank of Hawai‘i Corporation and Subsidiaries

 

 

 

Analysis of Change in Net Interest Income - Taxable-Equivalent Basis

 

Table 8b

 

 

Three Months Ended March 31, 2024

 

 

Compared to March 31, 2023

 

(dollars in millions)

Volume 1

 

Rate 1

 

Total

 

Change in Interest Income:

 

 

 

 

 

 

Funds Sold

$

2.0

 

$

0.7

 

$

2.7

 

Investment Securities

 

 

 

 

 

 

   Available-for-Sale

 

 

 

 

 

 

      Taxable

 

(3.8

)

 

1.8

 

 

(2.0

)

      Non-Taxable

 

(0.1

)

 

-

 

 

(0.1

)

   Held-to-Maturity

 

 

 

 

 

 

      Taxable

 

(1.8

)

 

(0.1

)

 

(1.9

)

Total Investment Securities

 

(5.7

)

 

1.7

 

 

(4.0

)

Loans and Leases

 

 

 

 

 

 

   Commercial and Industrial

 

3.1

 

 

2.7

 

 

5.8

 

   Paycheck Protection Program

 

(0.1

)

 

-

 

 

(0.1

)

   Commercial Mortgage

 

(0.2

)

 

5.6

 

 

5.4

 

   Construction

 

0.5

 

 

1.2

 

 

1.7

 

   Commercial Lease Financing

 

-

 

 

0.3

 

 

0.3

 

   Residential Mortgage

 

(0.2

)

 

5.3

 

 

5.1

 

   Home Equity

 

0.1

 

 

2.8

 

 

2.9

 

   Automobile

 

(0.4

)

 

2.0

 

 

1.6

 

   Other 2

 

(0.5

)

 

0.8

 

 

0.3

 

Total Loans and Leases

 

2.3

 

 

20.7

 

 

23.0

 

Other

 

(0.1

)

 

0.6

 

 

0.5

 

Total Change in Interest Income

 

(1.5

)

 

23.7

 

 

22.2

 

 

 

 

 

 

 

Change in Interest Expense:

 

 

 

 

 

 

Interest-Bearing Deposits

 

 

 

 

 

 

   Demand

 

(0.6

)

 

3.1

 

 

2.5

 

   Savings

 

0.3

 

 

28.5

 

 

28.8

 

   Time

 

11.5

 

 

8.5

 

 

20.0

 

Total Interest-Bearing Deposits

 

11.2

 

 

40.1

 

 

51.3

 

Funds Purchased

 

(0.7

)

 

-

 

 

(0.7

)

Short-Term Borrowings

 

(3.2

)

 

-

 

 

(3.2

)

Securities Sold Under Agreements to Repurchase

 

(5.2

)

 

1.2

 

 

(4.0

)

Other Debt

 

0.7

 

 

(0.1

)

 

0.6

 

Total Change in Interest Expense

 

2.8

 

 

41.2

 

 

44.0

 

 

 

 

 

 

 

 

Change in Net Interest Income

$

(4.3

)

$

(17.5

)

$

(21.8

)

 

 

 

 

 

 

 

1  The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

 

2  Comprised of other consumer revolving credit, installment, and consumer lease financing.

 

 

 

 

 

 

 

 

Bank of Hawai‘i Corporation and Subsidiaries

 

Salaries and Benefits

 

Table 9

 

 

Three Months Ended

 

 

 

March 31,

 

December 31,

 

March 31,

 

(dollars in thousands)

 

2024

 

2023

 

2023

 

Salaries

$

38,031

$

38,492

$

38,617

 

Incentive Compensation

 

3,090

 

3,402

 

3,997

 

Share-Based Compensation

 

3,799

 

3,443

 

3,159

 

Commission Expense

 

572

 

700

 

647

 

Retirement and Other Benefits

 

4,299

 

2,521

 

5,888

 

Payroll Taxes

 

4,730

 

2,598

 

5,848

 

Medical, Dental, and Life Insurance

 

3,212

 

2,500

 

3,864

 

Separation Expense

 

482

 

335

 

3,068

 

Total Salaries and Benefits

$

58,215

$

53,991

$

65,088

 

 

 

 

 

 

Bank of Hawai‘i Corporation and Subsidiaries

 

 

 

 

 

Loan and Lease Portfolio Balances

 

 

 

Table 10

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

(dollars in thousands)

2024

 

2023

 

2023

 

2023

 

2023

 

Commercial

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

$

1,669,482

 

$

1,652,699

 

$

1,569,572

 

$

1,502,676

 

$

1,425,916

 

Paycheck Protection Program

 

10,177

 

 

11,369

 

 

12,529

 

 

13,789

 

 

15,175

 

Commercial Mortgage

 

3,715,032

 

 

3,749,016

 

 

3,784,339

 

 

3,796,769

 

 

3,826,283

 

Construction

 

323,069

 

 

304,463

 

 

251,507

 

 

236,428

 

 

232,903

 

Lease Financing

 

57,817

 

 

59,939

 

 

61,522

 

 

62,779

 

 

65,611

 

Total Commercial

 

5,775,577

 

 

5,777,486

 

 

5,679,469

 

 

5,612,441

 

 

5,565,888

 

Consumer

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

4,616,900

 

 

4,684,171

 

 

4,699,140

 

 

4,721,976

 

 

4,691,298

 

Home Equity

 

2,240,946

 

 

2,264,827

 

 

2,285,974

 

 

2,278,105

 

 

2,260,001

 

Automobile

 

825,854

 

 

837,830

 

 

856,113

 

 

878,767

 

 

877,979

 

Other 1

 

394,560

 

 

400,712

 

 

398,795

 

 

423,600

 

 

429,356

 

Total Consumer

 

8,078,260

 

 

8,187,540

 

 

8,240,022

 

 

8,302,448

 

 

8,258,634

 

Total Loans and Leases

$

13,853,837

 

$

13,965,026

 

$

13,919,491

 

$

13,914,889

 

$

13,824,522

 

1  Comprised of other revolving credit, installment, and lease financing.

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

(dollars in thousands)

2024

 

2023

 

2023

 

2023

 

2023

 

Consumer

$

10,429,004

 

$

10,319,809

 

$

10,036,261

 

$

10,018,931

 

$

10,158,833

 

Commercial

 

8,323,330

 

 

8,601,224

 

 

8,564,536

 

 

8,019,971

 

 

8,594,441

 

Public and Other

 

1,924,252

 

 

2,134,012

 

 

2,201,512

 

 

2,469,713

 

 

1,738,026

 

Total Deposits

$

20,676,586

 

$

21,055,045

 

$

20,802,309

 

$

20,508,615

 

$

20,491,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Deposits

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

(dollars in thousands)

2024

 

2023

 

2023

 

2023

 

2023

 

Consumer

$

10,313,730

 

$

10,092,727

 

$

9,963,690

 

$

9,977,239

 

$

10,178,988

 

Commercial

 

8,334,540

 

 

8,581,426

 

 

8,288,891

 

 

8,138,358

 

 

8,611,960

 

Public and Other

 

1,895,370

 

 

2,029,917

 

 

2,239,501

 

 

1,903,004

 

 

1,639,934

 

Total Deposits

$

20,543,640

 

$

20,704,070

 

$

20,492,082

 

$

20,018,601

 

$

20,430,882

 

 

 

 

 

Bank of Hawai‘i Corporation and Subsidiaries

 

 

 

Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More

 

Table 11

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

(dollars in thousands)

2024

 

2023

 

2023

 

2023

 

2023

 

Non-Performing Assets

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans and Leases

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

$

13

 

$

39

 

$

43

 

$

17

 

$

31

 

Commercial Mortgage

 

2,714

 

 

2,884

 

 

2,996

 

 

3,107

 

 

3,216

 

Total Commercial

 

2,727

 

 

2,923

 

 

3,039

 

 

3,124

 

 

3,247

 

Consumer

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

3,199

 

 

2,935

 

 

3,706

 

 

3,504

 

 

4,199

 

Home Equity

 

3,240

 

 

3,791

 

 

3,734

 

 

3,809

 

 

3,638

 

Total Consumer

 

6,439

 

 

6,726

 

 

7,440

 

 

7,313

 

 

7,837

 

Total Non-Accrual Loans and Leases

 

9,166

 

 

9,649

 

 

10,479

 

 

10,437

 

 

11,084

 

Foreclosed Real Estate

 

2,672

 

 

2,098

 

 

1,040

 

 

1,040

 

 

1,040

 

Total Non-Performing Assets

$

11,838

 

$

11,747

 

$

11,519

 

$

11,477

 

$

12,124

 

 

 

 

 

 

 

 

 

 

 

Accruing Loans and Leases Past Due 90 Days or More

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

$

3,378

 

$

3,814

 

$

3,519

 

$

3,560

 

$

4,566

 

Home Equity

 

1,580

 

 

1,734

 

 

2,172

 

 

2,022

 

 

1,723

 

Automobile

 

517

 

 

399

 

 

393

 

 

577

 

 

598

 

Other 1

 

872

 

 

648

 

 

643

 

 

633

 

 

632

 

Total Consumer

 

6,347

 

 

6,595

 

 

6,727

 

 

6,792

 

 

7,519

 

Total Accruing Loans and Leases Past Due 90 Days or More

$

6,347

 

$

6,595

 

$

6,727

 

$

6,792

 

$

7,519

 

Total Loans and Leases

$

13,853,837

 

$

13,965,026

 

$

13,919,491

 

$

13,914,889

 

$

13,824,522

 

 

 

 

 

 

 

 

 

 

 

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

 

0.07

%

 

0.07

%

 

0.08

%

 

0.08

%

 

0.08

%

 

 

 

 

 

 

 

 

 

 

Ratio of Non-Performing Assets to Total Loans and Leases

 

 

 

 

 

 

 

 

 

 

and Foreclosed Real Estate

 

0.09

%

 

0.08

%

 

0.08

%

 

0.08

%

 

0.09

%

 

 

 

 

 

 

 

 

 

 

Ratio of Non-Performing Assets to Total Assets

 

0.05

%

 

0.05

%

 

0.05

%

 

0.04

%

 

0.05

%

 

 

 

 

 

 

 

 

 

 

Ratio of Commercial Non-Performing Assets to Total Commercial Loans

 

 

 

 

 

 

 

 

 

 

and Leases and Commercial Foreclosed Real Estate

 

0.05

%

 

0.05

%

 

0.05

%

 

0.06

%

 

0.06

%

 

 

 

 

 

 

 

 

 

 

Ratio of Consumer Non-Performing Assets to Total Consumer Loans

 

 

 

 

 

 

 

 

 

 

and Leases and Consumer Foreclosed Real Estate

 

0.11

%

 

0.11

%

 

0.10

%

 

0.10

%

 

0.11

%

 

 

 

 

 

 

 

 

 

 

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

%

 

0.13

%

 

0.13

%

 

0.14

%

 

 

 

 

 

 

 

 

 

 

Quarter to Quarter Changes in Non-Performing Assets

 

 

 

 

 

 

 

 

 

 

Balance at Beginning of Quarter

$

11,747

 

$

11,519

 

$

11,477

 

$

12,124

 

$

12,647

 

Additions

 

1,652

 

 

2,683

 

 

1,318

 

 

1,116

 

 

552

 

Reductions

 

 

 

 

 

 

 

 

 

 

Payments

 

(921

)

 

(2,018

)

 

(1,017

)

 

(226

)

 

(778

)

Return to Accrual Status

 

(617

)

 

(437

)

 

(259

)

 

(1,527

)

 

(297

)

Charge-offs / Write-downs

 

(23

)

 

-

 

 

-

 

 

(10

)

 

-

 

Total Reductions

 

(1,561

)

 

(2,455

)

 

(1,276

)

 

(1,763

)

 

(1,075

)

Balance at End of Quarter

$

11,838

 

$

11,747

 

$

11,519

 

$

11,477

 

$

12,124

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

March 31,

 

December 31,

 

March 31,

 

 

(dollars in thousands)

2024

 

2023

 

2023

 

 

Balance at Beginning of Period

$

152,429

 

$

151,653

 

$

151,247

 

 

 

 

 

 

 

 

 

Loans and Leases Charged-Off

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

Commercial and Industrial

 

(360

)

 

(229

)

 

(261

)

 

Consumer

 

 

 

 

 

 

 

Home Equity

 

(35

)

 

(14

)

 

(50

)

 

Automobile

 

(1,048

)

 

(938

)

 

(1,663

)

 

Other 1

 

(2,312

)

 

(2,349

)

 

(2,335

)

 

Total Loans and Leases Charged-Off

 

(3,755

)

 

(3,530

)

 

(4,309

)

 

Recoveries on Loans and Leases Previously Charged-Off

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

Commercial and Industrial

 

116

 

 

125

 

 

50

 

 

Consumer

 

 

 

 

 

 

 

Residential Mortgage

 

42

 

 

301

 

 

61

 

 

Home Equity

 

184

 

 

180

 

 

184

 

 

Automobile

 

526

 

 

612

 

 

672

 

 

Other 1

 

606

 

 

588

 

 

674

 

 

Total Recoveries on Loans and Leases Previously Charged-Off

 

1,474

 

 

1,806

 

 

1,641

 

 

Net Charged-Off - Loans and Leases

 

(2,281

)

 

(1,724

)

 

(2,668

)

 

Provision for Credit Losses:

 

 

 

 

 

 

 

Loans and Leases

 

3,542

 

 

2,864

 

 

1,806

 

 

Unfunded Commitments

 

(1,542

)

 

(364

)

 

194

 

 

Total Provision for Credit Losses

 

2,000

 

 

2,500

 

 

2,000

 

 

Balance at End of Period

$

152,148

 

$

152,429

 

$

150,579

 

 

 

 

 

 

 

 

 

 

Components

 

 

 

 

 

 

 

Allowance for Credit Losses - Loans and Leases

$

147,664

 

$

146,403

 

$

143,577

 

 

Reserve for Unfunded Commitments

 

4,484

 

 

6,026

 

 

7,002

 

 

Total Reserve for Credit Losses

$

152,148

 

$

152,429

 

$

150,579

 

 

 

 

 

 

 

 

 

Average Loans and Leases Outstanding

$

13,868,800

 

$

13,906,114

 

$

13,717,483

 

 

 

 

 

 

 

 

 

Ratio of Net Loans and Leases Charged-Off to

 

 

 

 

 

 

 

     Average Loans and Leases Outstanding (annualized)

 

0.07

%

 

0.05

%

 

0.08

%

 

Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 2

 

1.07

%

 

1.05

%

 

1.04

%

 

 

 

 

 

 

 

 

 

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 13

 

 

Consumer

 

Commercial

 

Treasury

 

Consolidated

 

(dollars in thousands)

Banking

 

Banking

 

and Other

 

Total

 

Three Months Ended March 31, 2024

 

 

 

 

 

 

 

 

Net Interest Income (Loss)

$

96,994

 

$

51,493

 

$

(34,549

)

$

113,938

 

Provision for Credit Losses

 

2,287

 

 

(6

)

 

(281

)

 

2,000

 

Net Interest Income (Loss) After Provision for Credit Losses

 

94,707

 

 

51,499

 

 

(34,268

)

 

111,938

 

Noninterest Income

 

31,982

 

 

6,794

 

 

3,509

 

 

42,285

 

Noninterest Expense

 

(82,705

)

 

(18,643

)

 

(4,511

)

 

(105,859

)

Income (Loss) Before Income Taxes

 

43,984

 

 

39,650

 

 

(35,270

)

 

48,364

 

Provision for Income Taxes

 

(11,181

)

 

(10,008

)

 

9,216

 

 

(11,973

)

Net Income (Loss)

$

32,803

 

$

29,642

 

$

(26,054

)

$

36,391

 

Total Assets as of March 31, 2024

$

8,395,784

 

$

5,830,056

 

$

9,195,020

 

$

23,420,860

 

 

 

 

 

 

 

 

 

Three Months March 31, 2023 1

 

 

 

 

 

 

 

 

Net Interest Income (Loss)

$

96,583

 

$

55,541

 

$

(16,169

)

$

135,955

 

Provision for Credit Losses

 

2,669

 

 

(1

)

 

(668

)

 

2,000

 

Net Interest Income (Loss) After Provision for Credit Losses

 

93,914

 

 

55,542

 

 

(15,501

)

 

133,955

 

Noninterest Income

 

31,154

 

 

8,649

 

 

934

 

 

40,737

 

Noninterest Expense

 

(84,975

)

 

(20,289

)

 

(6,655

)

 

(111,919

)

Income (Loss) Before Income Taxes

 

40,093

 

 

43,902

 

 

(21,222

)

 

62,773

 

Provision for Income Taxes

 

(10,274

)

 

(10,486

)

 

4,829

 

 

(15,931

)

Net Income (Loss)

$

29,819

 

$

33,416

 

$

(16,393

)

$

46,842

 

Total Assets as of March 31, 2023

$

8,628,287

 

$

5,625,254

 

$

9,678,436

 

$

23,931,977

 

 

 

 

 

 

 

 

 

 

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

 

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

(dollars in thousands, except per share amounts)

2024

 

 

2023

 

 

2023

 

 

2023

 

 

2023

 

 

Quarterly Operating Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and Fees on Loans and Leases

$

159,336

 

 

$

158,324

 

 

$

151,245

 

 

$

144,541

 

 

$

136,501

 

 

Income on Investment Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale

 

21,757

 

 

 

22,782

 

 

 

23,552

 

 

 

23,301

 

 

 

23,893

 

 

Held-to-Maturity

 

22,136

 

 

 

22,589

 

 

 

22,838

 

 

 

23,375

 

 

 

23,948

 

 

Deposits

 

30

 

 

 

23

 

 

 

18

 

 

 

18

 

 

 

27

 

 

Funds Sold

 

6,127

 

 

 

5,705

 

 

 

12,828

 

 

 

6,395

 

 

 

3,366

 

 

Other

 

970

 

 

 

924

 

 

 

1,464

 

 

 

2,121

 

 

 

597

 

 

Total Interest Income

 

210,356

 

 

 

210,347

 

 

 

211,945

 

 

 

199,751

 

 

 

188,332

 

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

89,056

 

 

 

87,121

 

 

 

72,153

 

 

 

53,779

 

 

 

37,794

 

 

Securities Sold Under Agreements to Repurchase

 

1,443

 

 

 

1,459

 

 

 

4,034

 

 

 

5,436

 

 

 

5,377

 

 

Funds Purchased

 

-

 

 

 

-

 

 

 

-

 

 

 

184

 

 

 

704

 

 

Short-Term Borrowings

 

-

 

 

 

-

 

 

 

-

 

 

 

2,510

 

 

 

3,203

 

 

Other Debt

 

5,919

 

 

 

5,982

 

 

 

14,821

 

 

 

13,494

 

 

 

5,299

 

 

Total Interest Expense

 

96,418

 

 

 

94,562

 

 

 

91,008

 

 

 

75,403

 

 

 

52,377

 

 

Net Interest Income

 

113,938

 

 

 

115,785

 

 

 

120,937

 

 

 

124,348

 

 

 

135,955

 

 

Provision for Credit Losses

 

2,000

 

 

 

2,500

 

 

 

2,000

 

 

 

2,500

 

 

 

2,000

 

 

Net Interest Income After Provision for Credit Losses

 

111,938

 

 

 

113,285

 

 

 

118,937

 

 

 

121,848

 

 

 

133,955

 

 

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust and Asset Management

 

11,189

 

 

 

11,144

 

 

 

10,548

 

 

 

11,215

 

 

 

10,690

 

 

Mortgage Banking

 

951

 

 

 

1,016

 

 

 

1,059

 

 

 

1,176

 

 

 

1,004

 

 

Service Charges on Deposit Accounts

 

7,947

 

 

 

7,949

 

 

 

7,843

 

 

 

7,587

 

 

 

7,737

 

 

Fees, Exchange, and Other Service Charges

 

14,123

 

 

 

13,774

 

 

 

13,824

 

 

 

14,150

 

 

 

13,808

 

 

Investment Securities Losses, Net

 

(1,497

)

 

 

(1,619

)

 

 

(6,734

)

 

 

(1,310

)

 

 

(1,792

)

 

Annuity and Insurance

 

1,046

 

 

 

1,271

 

 

 

1,156

 

 

 

1,038

 

 

 

1,271

 

 

Bank-Owned Life Insurance

 

3,356

 

 

 

3,176

 

 

 

2,749

 

 

 

2,876

 

 

 

2,842

 

 

Other

 

5,170

 

 

 

5,572

 

 

 

19,889

 

 

 

6,523

 

 

 

5,177

 

 

Total Noninterest Income

 

42,285

 

 

 

42,283

 

 

 

50,334

 

 

 

43,255

 

 

 

40,737

 

 

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and Benefits

 

58,215

 

 

 

53,991

 

 

 

58,825

 

 

 

56,175

 

 

 

65,088

 

 

Net Occupancy

 

10,456

 

 

 

9,734

 

 

 

10,327

 

 

 

9,991

 

 

 

9,872

 

 

Net Equipment

 

10,103

 

 

 

9,826

 

 

 

9,477

 

 

 

10,573

 

 

 

10,375

 

 

Data Processing

 

4,770

 

 

 

4,948

 

 

 

4,706

 

 

 

4,599

 

 

 

4,583

 

 

Professional Fees

 

4,677

 

 

 

5,079

 

 

 

3,846

 

 

 

4,651

 

 

 

3,883

 

 

FDIC Insurance

 

3,614

 

 

 

18,545

 

 

 

3,361

 

 

 

3,173

 

 

 

3,234

 

 

Other

 

14,024

 

 

 

13,839

 

 

 

15,059

 

 

 

14,874

 

 

 

14,884

 

 

Total Noninterest Expense

 

105,859

 

 

 

115,962

 

 

 

105,601

 

 

 

104,036

 

 

 

111,919

 

 

Income Before Provision for Income Taxes

 

48,364

 

 

 

39,606

 

 

 

63,670

 

 

 

61,067

 

 

 

62,773

 

 

Provision for Income Taxes

 

11,973

 

 

 

9,210

 

 

 

15,767

 

 

 

15,006

 

 

 

15,931

 

 

Net Income

$

36,391

 

 

$

30,396

 

 

$

47,903

 

 

$

46,061

 

 

$

46,842

 

 

Preferred Stock Dividends

 

1,969

 

 

 

1,969

 

 

 

1,969

 

 

 

1,969

 

 

 

1,969

 

 

Net Income Available to Common Shareholders

$

34,422

 

 

$

28,427

 

 

$

45,934

 

 

$

44,092

 

 

$

44,873

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

$

0.87

 

 

$

0.72

 

 

$

1.17

 

 

$

1.12

 

 

$

1.14

 

 

Diluted Earnings Per Common Share

$

0.87

 

 

$

0.72

 

 

$

1.17

 

 

$

1.12

 

 

$

1.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Totals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and Leases

$

13,853,837

 

 

$

13,965,026

 

 

$

13,919,491

 

 

$

13,914,889

 

 

$

13,824,522

 

 

Total Assets

 

23,420,860

 

 

 

23,733,296

 

 

 

23,549,785

 

 

 

24,947,936

 

 

 

23,931,977

 

 

Total Deposits

 

20,676,586

 

 

 

21,055,045

 

 

 

20,802,309

 

 

 

20,508,615

 

 

 

20,491,300

 

 

Total Shareholders' Equity

 

1,435,977

 

 

 

1,414,242

 

 

 

1,363,840

 

 

 

1,358,279

 

 

 

1,354,430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets

 

0.63

 

 %

 

0.51

 

 %

 

0.78

 

 %

 

0.77

 

 %

 

0.80

 

 %

Return on Average Shareholders' Equity

 

10.34

 

 

 

8.86

 

 

 

13.92

 

 

 

13.55

 

 

 

14.25

 

 

Return on Average Common Equity

 

11.20

 

 

 

9.55

 

 

 

15.38

 

 

 

14.95

 

 

 

15.79

 

 

Efficiency Ratio 1

 

67.76

 

 

 

73.36

 

 

 

61.66

 

 

 

62.07

 

 

 

63.34

 

 

Net Interest Margin 2

 

2.11

 

 

 

2.13

 

 

 

2.13

 

 

 

2.22

 

 

 

2.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

Bank of Hawai‘i Corporation and Subsidiaries

 

 

 

 

 

Hawaii Economic Trends

 

 

Table 15

 

Two Months Ended

 

 

Year Ended

(dollars in millions; jobs in thousands)

February 29, 2024

 

 

December 31, 2023

December 31, 2022

Hawaii Economic Trends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State General Fund Revenues 1

$

1,604.2

 

 

3.8

 

 %

$

9,504.1

 

 

 

0.7

 

 %

$

9,441.3

 

 

 

16.0

 

 %

General Excise and Use Tax Revenue 1

 

812.5

 

 

1.9

 

 

 

4,474.1

 

 

 

4.9

 

 

 

4,263.4

 

 

 

18.3

 

 

Jobs 2

 

653.5

 

 

 

 

655.2

 

 

 

 

 

653.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

 

 

 

 

 

 

2024

 

 

2023

2022

Unemployment, seasonally adjusted 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Statewide

 

 

 

 

 

 

 

 

 

3.1

 

 %

 

3.0

 

 %

 

3.2

 

 %

 Honolulu County

 

 

 

 

 

 

 

 

 

2.9

 

 

 

2.6

 

 

 

3.1

 

 

 Hawaii County

 

 

 

 

 

 

 

 

 

3.2

 

 

 

2.8

 

 

 

3.5

 

 

 Maui County

 

 

 

 

 

 

 

 

 

4.3

 

 

 

6.2

 

 

 

3.5

 

 

 Kauai County

 

 

 

 

 

 

 

 

 

2.6

 

 

 

2.5

 

 

 

3.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

(1-year percentage change, except months of inventory)

 

 

 

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Housing Trends (Single Family Oahu) 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Median Home Price

 

 

 

 

 

 

4.4

 

 %

 

(5.0

)

 %

 

11.6

 

 %

 

19.3

 

 %

Home Sales Volume (units)

 

 

 

 

 

 

6.1

 

 %

 

(26.3

)

 %

 

(23.2

)

 %

 

17.9

 

 %

Months of Inventory

 

 

 

 

 

 

2.7

 

 

 

2.8

 

 

 

2.1

 

 

 

0.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Monthly Visitor Arrivals,

 

 

Percentage Change

(in thousands, except percent change)

 

 

 

 

 

Not Seasonally Adjusted

 

 

from Previous Year

Tourism 4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      February 29, 2024

 

 

 

 

 

 

 

 

 

752.7

 

 

 

 

 

 

2.6

 

%

      January 31, 2024

 

 

 

 

 

 

 

 

 

745.6

 

 

 

 

 

 

(3.8

)

 

      December 31, 2023

 

 

 

 

 

 

 

 

 

845.6

 

 

 

 

 

 

(1.5

)

 

      November 30, 2023

 

 

 

 

 

 

 

 

 

720.3

 

 

 

 

 

 

0.2

 

 

      October 31, 2023

 

 

 

 

 

 

 

 

 

700.3

 

 

 

 

 

 

(3.7

)

 

      September 30, 2023

 

 

 

 

 

 

 

 

 

643.1

 

 

 

 

 

 

(7.1

)

 

      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

 

 

 

 

 

 

 

 

 

858.3

 

 

 

 

 

 

14.0

 

 

      November 30, 2022

 

 

 

 

 

 

 

 

 

719.0

 

 

 

 

 

 

17.1

 

 

      October 31, 2022

 

 

 

 

 

 

 

 

 

727.4

 

 

 

 

 

 

32.1

 

 

      September 30, 2022

 

 

 

 

 

 

 

 

 

692.2

 

 

 

 

 

 

37.2

 

 

      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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  Source: Hawaii Department of Business, Economic Development & Tourism

2  Source: U.S. Bureau of Labor Statistics

3  Source: Honolulu Board of Realtors

4  Source: Hawaii Tourism Authority