Sign In  |  Register  |  About San Anselmo  |  Contact Us

San Anselmo, CA
September 01, 2020 1:33pm
7-Day Forecast | Traffic
  • Search Hotels in San Anselmo

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

Bank of Hawai‘i Corporation Second Quarter 2024 Financial Results

  • Diluted Earnings Per Common Share $0.81
  • Net Income $34.1 Million
  • Net Interest Margin 2.15%
  • Board of Directors Declares Dividend of $0.70 Per Common Share
  • Industry-wide FDIC Special Assessment Resulted in a $2.6 Million Non-Recurring Charge in the Second Quarter of 2024
  • Raised $165 million in connection with preferred stock offering in late June

Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $0.81 for the second quarter of 2024, compared with diluted earnings per common share of $0.87 in the previous quarter and $1.12 in the same quarter of 2023. An industry-wide FDIC Special Assessment resulted in a $2.6 million one-time charge in the second quarter of 2024 which negatively impacted diluted earnings per common share by $0.05. Net income for the second quarter of 2024 was $34.1 million, down 6.3% from the previous quarter and down 26.0% from the same quarter of 2023. The return on average common equity for the second quarter of 2024 was 10.41% compared with 11.20% in the previous quarter and 14.95% in the same quarter of 2023.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240722713291/en/

“Bank of Hawai‘i delivered strong financial results in the second quarter of 2024,” said Peter Ho, Chairman and CEO. “Credit quality remained exceptional with non-performing assets of 0.11% at quarter end and net charge-offs of 0.10% during the quarter. Our net interest margin increased by 4 basis points as we continued to benefit from cashflows repricing. Our core noninterest income remained steady while core noninterest expense increased by 2.0%. Average deposits were down by 0.9% and average loans were down modestly. Finally, we successfully closed a preferred stock offering in late June, strengthening our already strong capital levels.”

Financial Highlights

Net interest income for the second quarter of 2024 was $114.8 million, an increase of 0.8% from the previous quarter and a decrease of 7.6% from the same quarter of 2023. Net interest margin was 2.15% in the second quarter of 2024, an increase of 4 basis points from the previous quarter and a decrease of 7 basis points from the same quarter of 2023. The increases from the prior quarter were primarily due to higher earning asset yields, partially offset by higher funding costs. The decreases from the same period in 2023 were primarily due to higher funding costs, partially offset by higher earning asset yields.

The average yield on loans and leases was 4.76% in the second quarter of 2024, up 13 basis points from the prior quarter and up 57 basis points from the same quarter of 2023. The average yield on total earning assets was 3.99% in the second quarter of 2024, up 10 basis points from the prior quarter and up 43 basis points from the same quarter of 2023. The average cost of interest-bearing deposits was 2.46% in the second quarter of 2024, up 7 basis points from the prior quarter and up 92 basis points from the same quarter of 2023. The average cost of total deposits, including noninterest-bearing deposits, was 1.81%, up 7 basis points from the prior quarter and up 73 basis points from the same quarter of 2023. The changes in yields and rates over the linked quarter and year over year period reflected deposit mix shift and repricing.

Noninterest income was $42.1 million in the second quarter of 2024, a decrease of 0.5% from the previous quarter and a decrease of 2.7% from the same period in 2023. Noninterest income in the second quarter of 2023 included $1.5 million from the sale of a low-income housing tax credit investment. Adjusted for this item, noninterest income increased by 0.9% from adjusted noninterest income in the same period in 2023.

Noninterest expense was $109.2 million in the second quarter of 2024, an increase of 3.2% from the previous quarter and an increase of 5.0% from the same quarter of 2023. As discussed above, noninterest expense in the second quarter of 2024 included an industry-wide FDIC Special Assessment of $2.6 million, as well as separation expenses of $0.8 million, while noninterest expense in the first quarter of 2024 included seasonal payroll expenses of approximately $2.2 million and separation expenses of $0.5 million. Adjusted noninterest expense in the second quarter of 2024 was $105.9 million, up 2.6% from adjusted noninterest expense in the previous quarter and up 1.8% from the same period in 2023.

The effective tax rate for the second quarter of 2024 was 24.77% compared with 24.76% in the previous quarter and 24.57% during the same quarter of 2023.

Asset Quality

The Company’s overall asset quality remained strong during the second quarter of 2024. Provision for credit losses for the second quarter of 2024 was $2.4 million compared with $2.0 million in the previous quarter and $2.5 million in the same quarter of 2023.

Total non-performing assets were $15.2 million at June 30, 2024, up $3.3 million from March 31, 2024 and up $3.7 million from June 30, 2023. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.11% at the end of the quarter, an increase of 2 basis points from the end of the prior quarter and an increase of 3 basis points from the same quarter of 2023.

Net loan and lease charge-offs during the second quarter of 2024 were $3.4 million or 10 basis points annualized of total average loans and leases outstanding. Net loan and lease charge-offs for the second quarter of 2024 were comprised of charge-offs of $4.8 million partially offset by recoveries of $1.4 million. Compared to the prior quarter, net loan and lease charge-offs increased by $1.1 million or 3 basis points annualized on total average loans and leases outstanding. Compared to the same quarter of 2023, net loan and lease charge-offs increased by $2.0 million or 6 basis points annualized on total average loans and leases outstanding.

The allowance for credit losses on loans and leases was $147.5 million at June 30, 2024, a decrease of $0.2 million from March 31, 2024 and an increase of $2.1 million from June 30, 2023. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.07% at the end of the quarter, flat from the end of the prior quarter and up 3 basis points from the same quarter of 2023.

Balance Sheet

Total assets were $23.3 billion at June 30, 2024, a decrease of 0.5% from March 31, 2024 and a decrease of 6.6% from June 30, 2023. The decrease from the prior quarter was primarily due to decreases in investment securities and funds sold partially offset by an increase in cash and due from banks. The decrease from the same period in 2023 was primarily due to decreases in our investment securities and funds sold.

The investment securities portfolio was $7.1 billion at June 30, 2024, a decrease of 2.1% from March 31, 2024 and a decrease of 9.6% from June 30, 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 $13.8 billion at June 30, 2024, a decrease of 0.2% from March 31, 2024 and a decrease of 0.6% from June 30, 2023. Total commercial loans were $5.8 billion at June 30, 2024, an increase of 0.7% from the prior quarter and an increase of 3.6% from the same quarter of 2023. The increase from the prior quarter was primarily due to increases in commercial mortgage and commercial and industrial portfolios. 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 commercial mortgage. Total consumer loans were $8.0 billion at June 30, 2024, a decrease of 0.8% from the prior quarter and a decrease of 3.5% from the same period in 2023. The decreases were primarily due to decreases in our residential mortgage, home equity and automobile portfolios.

Total deposits were $20.4 billion at June 30, 2024, a decrease of 1.3% from March 31, 2024 and a decrease of 0.5% from June 30, 2023. Noninterest-bearing deposits made up 26% of total deposit balances at June 30, 2024, down from 27% at March 31, 2024 and down from 29% at June 30, 2023. Average total deposits were $20.4 billion for the second quarter of 2024, down 0.9% from $20.5 billion in the prior quarter and up 1.7% from $20.0 billion in the second quarter of 2023. Insured and uninsured but collateralized deposits represented 59% of total deposit balances at June 30, 2024, up from 58% at March 31, 2024 and down from 61% at June 30, 2023. At the end of the quarter, our readily available liquidity of $10.0 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.

In the second quarter of 2024, the Company issued $165 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, at a rate of 8.000%. The Company received net proceeds from the offering of $160.6 million after issuance cost.

The Tier 1 Capital Ratio was 13.99% at June 30, 2024 compared with 12.74% at March 31, 2024 and 12.21% at June 30, 2023. The Tier 1 Leverage Ratio was 8.37% at June 30, 2024, up 75 basis points from 7.62% at March 31, 2024 and up 116 basis points from 7.21% at June 30, 2023. The increases were primarily due to higher Tier 1 capital as a result of the Series B Preferred Stock offering, discussed above, retained earnings growth and decreases in risk-weighted assets and average total assets.

No shares of common stock were repurchased under the share repurchase program in the second quarter of 2024. Total remaining buyback authority under the share repurchase program was $126.0 million at June 30, 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 September 16, 2024 to shareholders of record at the close of business on August 30, 2024.

On July 8, 2024, the Company announced that the Board of Directors declared a quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, and a quarterly dividend payment of $8.89 per share, equivalent to $0.2223 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B. The depositary shares representing the Series A Preferred Stock and Series B Preferred Stock are traded on the NYSE under the symbol “BOH.PRA” and “BOH.PRB”, respectively. The dividends on the Series A Preferred Stock and Series B Preferred Stock will be payable on August 1, 2024 to shareholders of record of the preferred stock as of the close of business on July 18, 2024.

Conference Call Information

The Company will review its second quarter financial results today at 8:00 a.m. Hawai‘i Time (2:00 p.m. Eastern Time). The 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/BI199e7796d16b4ac8844dd7c346201625. A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawai‘i Time on Monday, July 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 and its Form 10-Q for fiscal quarter ended March 31, 2024, which were filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

Bank of Hawai‘i Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawai‘i and the West Pacific. The Company's principal subsidiary, Bank of Hawai‘i, was founded in 1897. For more information about Bank of Hawai‘i Corporation, see the Company’s website, www.boh.com. Bank of Hawai‘i Corporation is a trade name of Bank of Hawaii Corporation.

Bank of Hawai‘i Corporation and Subsidiaries
Financial Highlights

Table 1

Three Months Ended

 

Six Months Ended

June 30,

 

March 31,

 

June 30,

 

June 30,

 

(dollars in thousands, except per share amounts)

 

2024

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

For the Period:
Operating Results
Net Interest Income

$

114,846

$

113,938

$

124,348

$

228,784

$

260,303

Provision for Credit Losses

 

2,400

 

2,000

 

2,500

 

4,400

 

4,500

Total Noninterest Income

 

42,087

 

42,285

 

43,255

 

84,372

 

83,992

Total Noninterest Expense

 

109,226

 

105,859

 

104,036

 

215,085

 

215,955

Pre-Provision Net Revenue

 

47,707

 

50,364

 

63,567

 

98,071

 

128,340

Net Income

 

34,083

 

36,391

 

46,061

 

70,474

 

92,903

Net Income Available to Common Shareholders 1

 

32,114

 

34,422

 

44,092

 

66,536

 

88,965

Basic Earnings Per Common Share

 

0.81

 

0.87

 

1.12

 

1.69

 

2.27

Diluted Earnings Per Common Share

 

0.81

 

0.87

 

1.12

 

1.68

 

2.26

Dividends Declared Per Common Share

 

0.70

 

0.70

 

0.70

 

1.40

 

1.40

 
Performance Ratios
Return on Average Assets

 

0.59

%

 

0.63

%

 

0.77

%

 

0.61

%

 

0.78

%

Return on Average Shareholders' Equity

 

9.53

 

10.34

 

13.55

 

9.93

 

13.90

Return on Average Common Equity

 

10.41

 

11.20

 

14.95

 

10.81

 

15.36

Efficiency Ratio 2

 

69.60

 

67.76

 

62.07

 

68.68

 

62.72

Net Interest Margin 3

 

2.15

 

2.11

 

2.22

 

2.13

 

2.34

Dividend Payout Ratio 4

 

86.42

 

80.46

 

62.50

 

82.84

 

61.67

Average Shareholders' Equity to Average Assets

 

6.22

 

6.08

 

5.65

 

6.15

 

5.62

 
Average Balances
Average Loans and Leases

$

13,831,797

$

13,868,800

$

13,876,754

$

13,850,299

$

13,797,559

Average Assets

 

23,145,107

 

23,281,566

 

24,114,443

 

23,213,336

 

23,990,649

Average Deposits

 

20,358,393

 

20,543,640

 

20,018,601

 

20,451,017

 

20,223,603

Average Shareholders' Equity

 

1,438,476

 

1,416,102

 

1,363,059

 

1,427,289

 

1,348,057

 
Per Share of Common Stock
Book Value

$

31.91

$

31.62

$

29.66

$

31.91

$

29.66

Tangible Book Value

 

31.12

 

30.83

 

28.87

 

31.12

 

28.87

Market Value
Closing

 

57.21

 

62.39

 

41.23

 

57.21

 

41.23

High

 

62.53

 

73.73

 

52.37

 

73.73

 

81.73

Low

 

54.50

 

58.38

 

30.83

 

54.50

 

30.83

 
June 30, March 31, December 31, June 30,

 

2024

 

 

2024

 

 

2023

 

 

2023

As of Period End:
Balance Sheet Totals
Loans and Leases

$

13,831,266

$

13,853,837

$

13,965,026

$

13,914,889

Total Assets

 

23,300,768

 

23,420,860

 

23,733,296

 

24,947,936

Total Deposits

 

20,408,502

 

20,676,586

 

21,055,045

 

20,508,615

Other Debt

 

560,136

 

560,163

 

560,190

 

1,760,243

Total Shareholders' Equity

 

1,612,849

 

1,435,977

 

1,414,242

 

1,358,279

 
Asset Quality
Non-Performing Assets

$

15,179

$

11,838

$

11,747

$

11,477

Allowance for Credit Losses - Loans and Leases

 

147,477

 

147,664

 

146,403

 

145,367

Allowance to Loans and Leases Outstanding 5

 

1.07

%

 

1.07

%

 

1.05

%

 

1.04

%

 
Capital Ratios 6
Common Equity Tier 1 Capital Ratio

 

11.59

%

 

11.50

%

 

11.33

%

 

11.00

%

Tier 1 Capital Ratio

 

13.99

 

12.74

 

12.56

 

12.21

Total Capital Ratio

 

15.05

 

13.81

 

13.60

 

13.24

Tier 1 Leverage Ratio

 

8.37

 

7.62

 

7.51

 

7.21

Total Shareholders' Equity to Total Assets

 

6.92

 

6.13

 

5.96

 

5.44

Tangible Common Equity to Tangible Assets 7

 

5.31

 

5.24

 

5.07

 

4.60

Tangible Common Equity to Risk-Weighted Assets 7

 

8.82

 

8.70

 

8.45

 

7.97

 
Non-Financial Data
Full-Time Equivalent Employees

 

1,910

 

1,891

 

1,899

 

2,025

Branches

 

50

 

50

 

51

 

51

ATMs

 

317

 

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 June 30, 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

June 30,

March 31,

December 31,

June 30,

(dollars in thousands)

 

2024

 

 

2024

 

 

2023

 

 

2023

 

 
Total Shareholders' Equity

$

1,612,849

 

$

1,435,977

 

$

1,414,242

 

$

1,358,279

 

Less: Preferred Stock

 

345,000

 

 

180,000

 

 

180,000

 

 

180,000

 

Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

 

31,517

 

Tangible Common Equity

$

1,236,332

 

$

1,224,460

 

$

1,202,725

 

$

1,146,762

 

 
Total Assets

$

23,300,768

 

$

23,420,860

 

$

23,733,296

 

$

24,947,936

 

Less: Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

 

31,517

 

Tangible Assets

$

23,269,251

 

$

23,389,343

 

$

23,701,779

 

$

24,916,419

 

 
 
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements 1

$

14,021,387

 

$

14,071,841

 

$

14,226,780

 

$

14,391,943

 

 
Total Shareholders' Equity to Total Assets

 

6.92

%

 

6.13

%

 

5.96

%

 

5.44

%

Tangible Common Equity to Tangible Assets (Non-GAAP)

 

5.31

%

 

5.24

%

 

5.07

%

 

4.60

%

 
Tier 1 Capital Ratio 1

 

13.99

%

 

12.74

%

 

12.56

%

 

12.21

%

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

 

8.82

%

 

8.70

%

 

8.45

%

 

7.97

%

 
1 Regulatory capital ratios as of June 30, 2024 are preliminary.
Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Income Table 3

Three Months Ended

 

Six Months Ended

June 30,

March 31,

June 30,

 

June 30,

(dollars in thousands, except per share amounts)

 

2024

 

 

2024

 

 

2023

 

 

 

2024

 

 

2023

 

Interest Income
Interest and Fees on Loans and Leases

$

163,208

 

$

159,336

 

$

144,541

 

$

322,544

 

$

281,042

 

Income on Investment Securities
Available-for-Sale

 

21,468

 

 

21,757

 

 

23,301

 

 

43,225

 

 

47,194

 

Held-to-Maturity

 

21,595

 

 

22,136

 

 

23,375

 

 

43,731

 

 

47,323

 

Deposits

 

25

 

 

30

 

 

18

 

 

55

 

 

45

 

Funds Sold

 

6,114

 

 

6,127

 

 

6,395

 

 

12,241

 

 

9,761

 

Other

 

1,120

 

 

970

 

 

2,121

 

 

2,090

 

 

2,718

 

Total Interest Income

 

213,530

 

 

210,356

 

 

199,751

 

 

423,886

 

 

388,083

 

Interest Expense
Deposits

 

91,542

 

 

89,056

 

 

53,779

 

 

180,598

 

 

91,573

 

Securities Sold Under Agreements to Repurchase

 

1,180

 

 

1,443

 

 

5,436

 

 

2,623

 

 

10,813

 

Funds Purchased

 

44

 

 

-

 

 

184

 

 

44

 

 

888

 

Short-Term Borrowings

 

-

 

 

-

 

 

2,510

 

 

-

 

 

5,713

 

Other Debt

 

5,918

 

 

5,919

 

 

13,494

 

 

11,837

 

 

18,793

 

Total Interest Expense

 

98,684

 

 

96,418

 

 

75,403

 

 

195,102

 

 

127,780

 

Net Interest Income

 

114,846

 

 

113,938

 

 

124,348

 

 

228,784

 

 

260,303

 

Provision for Credit Losses

 

2,400

 

 

2,000

 

 

2,500

 

 

4,400

 

 

4,500

 

Net Interest Income After Provision for Credit Losses

 

112,446

 

 

111,938

 

 

121,848

 

 

224,384

 

 

255,803

 

Noninterest Income
Trust and Asset Management

 

12,223

 

 

11,189

 

 

11,215

 

 

23,412

 

 

21,905

 

Mortgage Banking

 

1,028

 

 

951

 

 

1,176

 

 

1,979

 

 

2,180

 

Service Charges on Deposit Accounts

 

7,730

 

 

7,947

 

 

7,587

 

 

15,677

 

 

15,324

 

Fees, Exchange, and Other Service Charges

 

13,769

 

 

14,123

 

 

14,150

 

 

27,892

 

 

27,958

 

Investment Securities Losses, Net

 

(1,601

)

 

(1,497

)

 

(1,310

)

 

(3,098

)

 

(3,102

)

Annuity and Insurance

 

1,583

 

 

1,046

 

 

1,038

 

 

2,629

 

 

2,309

 

Bank-Owned Life Insurance

 

3,396

 

 

3,356

 

 

2,876

 

 

6,752

 

 

5,718

 

Other

 

3,959

 

 

5,170

 

 

6,523

 

 

9,129

 

 

11,700

 

Total Noninterest Income

 

42,087

 

 

42,285

 

 

43,255

 

 

84,372

 

 

83,992

 

Noninterest Expense
Salaries and Benefits

 

57,033

 

 

58,215

 

 

56,175

 

 

115,248

 

 

121,263

 

Net Occupancy

 

10,559

 

 

10,456

 

 

9,991

 

 

21,015

 

 

19,863

 

Net Equipment

 

10,355

 

 

10,103

 

 

10,573

 

 

20,458

 

 

20,948

 

Data Processing

 

4,745

 

 

4,770

 

 

4,599

 

 

9,515

 

 

9,182

 

Professional Fees

 

4,929

 

 

4,677

 

 

4,651

 

 

9,606

 

 

8,534

 

FDIC Insurance

 

7,170

 

 

3,614

 

 

3,173

 

 

10,784

 

 

6,407

 

Other

 

14,435

 

 

14,024

 

 

14,874

 

 

28,459

 

 

29,758

 

Total Noninterest Expense

 

109,226

 

 

105,859

 

 

104,036

 

 

215,085

 

 

215,955

 

Income Before Provision for Income Taxes

 

45,307

 

 

48,364

 

 

61,067

 

 

93,671

 

 

123,840

 

Provision for Income Taxes

 

11,224

 

 

11,973

 

 

15,006

 

 

23,197

 

 

30,937

 

Net Income

$

34,083

 

$

36,391

 

$

46,061

 

$

70,474

 

$

92,903

 

Preferred Stock Dividends

 

1,969

 

 

1,969

 

 

1,969

 

 

3,938

 

 

3,938

 

Net Income Available to Common Shareholders

$

32,114

 

$

34,422

 

$

44,092

 

$

66,536

 

$

88,965

 

Basic Earnings Per Common Share

$

0.81

 

$

0.87

 

$

1.12

 

$

1.69

 

$

2.27

 

Diluted Earnings Per Common Share

$

0.81

 

$

0.87

 

$

1.12

 

$

1.68

 

$

2.26

 

Dividends Declared Per Common Share

$

0.70

 

$

0.70

 

$

0.70

 

$

1.40

 

$

1.40

 

Basic Weighted Average Common Shares

 

39,450,551

 

 

39,350,390

 

 

39,241,559

 

 

39,400,452

 

 

39,259,279

 

Diluted Weighted Average Common Shares

 

39,618,705

 

 

39,626,463

 

 

39,317,521

 

 

39,618,774

 

 

39,382,359

 

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income Table 4

Three Months Ended

 

Six Months Ended

June 30,

March 31,

June 30,

 

June 30,

(dollars in thousands)

 

2024

 

2024

 

2023

 

 

 

2024

 

2023

Net Income

$

34,083

$

36,391

$

46,061

 

$

70,474

$

92,903

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

 

9,052

 

12,938

 

(18,217

)

 

21,990

 

11,059

Defined Benefit Plans

 

168

 

169

 

84

 

 

337

 

168

Other Comprehensive Income (Loss), Net of Tax:

 

9,220

 

13,107

 

(18,133

)

 

22,327

 

11,227

Comprehensive Income

$

43,303

$

49,498

$

27,928

 

$

92,801

$

104,130

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Condition Table 5

June 30,

March 31,

December 31,

June 30,

(dollars in thousands)

 

2024

 

 

2024

 

 

2023

 

 

2023

 

Assets
Interest-Bearing Deposits in Other Banks

$

3,259

 

$

2,742

 

$

2,761

 

$

2,261

 

Funds Sold

 

624,089

 

 

673,489

 

 

690,112

 

 

1,273,109

 

Investment Securities
Available-for-Sale

 

2,298,092

 

 

2,352,051

 

 

2,408,933

 

 

2,666,723

 

Held-to-Maturity (Fair Value of $4,002,122; $4,104,622; $4,253,637; and $4,411,003)

 

4,812,954

 

 

4,913,457

 

 

4,997,335

 

 

5,202,698

 

Loans Held for Sale

 

2,664

 

 

2,182

 

 

3,124

 

 

3,359

 

Loans and Leases

 

13,831,266

 

 

13,853,837

 

 

13,965,026

 

 

13,914,889

 

Allowance for Credit Losses

 

(147,477

)

 

(147,664

)

 

(146,403

)

 

(145,367

)

Net Loans and Leases

 

13,683,789

 

 

13,706,173

 

 

13,818,623

 

 

13,769,522

 

Total Earning Assets

 

21,424,847

 

 

21,650,094

 

 

21,920,888

 

 

22,917,672

 

Cash and Due from Banks

 

297,990

 

 

215,290

 

 

308,071

 

 

398,072

 

Premises and Equipment, Net

 

192,319

 

 

192,486

 

 

194,855

 

 

200,297

 

Operating Lease Right-of-Use Assets

 

84,757

 

 

85,501

 

 

86,110

 

 

89,286

 

Accrued Interest Receivable

 

67,554

 

 

67,887

 

 

66,525

 

 

64,720

 

Foreclosed Real Estate

 

2,672

 

 

2,672

 

 

2,098

 

 

1,040

 

Mortgage Servicing Rights

 

19,954

 

 

20,422

 

 

20,880

 

 

21,626

 

Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

 

31,517

 

Bank-Owned Life Insurance

 

470,708

 

 

468,206

 

 

462,894

 

 

456,889

 

Other Assets

 

708,450

 

 

686,785

 

 

639,458

 

 

766,817

 

Total Assets

$

23,300,768

 

$

23,420,860

 

$

23,733,296

 

$

24,947,936

 

 
Liabilities
Deposits
Noninterest-Bearing Demand

$

5,371,593

 

$

5,542,930

 

$

6,058,554

 

$

5,968,344

 

Interest-Bearing Demand

 

3,928,295

 

 

3,823,224

 

 

3,749,717

 

 

4,119,166

 

Savings

 

8,207,902

 

 

8,231,245

 

 

8,189,472

 

 

7,756,426

 

Time

 

2,900,712

 

 

3,079,187

 

 

3,057,302

 

 

2,664,679

 

Total Deposits

 

20,408,502

 

 

20,676,586

 

 

21,055,045

 

 

20,508,615

 

Securities Sold Under Agreements to Repurchase

 

100,490

 

 

150,490

 

 

150,490

 

 

725,490

 

Other Debt

 

560,136

 

 

560,163

 

 

560,190

 

 

1,760,243

 

Operating Lease Liabilities

 

93,364

 

 

94,104

 

 

94,693

 

 

97,768

 

Retirement Benefits Payable

 

23,142

 

 

23,365

 

 

23,673

 

 

26,434

 

Accrued Interest Payable

 

37,278

 

 

37,081

 

 

41,023

 

 

26,737

 

Taxes Payable

 

5,289

 

 

7,378

 

 

7,636

 

 

132

 

Other Liabilities

 

459,718

 

 

435,716

 

 

386,304

 

 

444,238

 

Total Liabilities

 

21,687,919

 

 

21,984,883

 

 

22,319,054

 

 

23,589,657

 

Shareholders' Equity
Preferred Stock (Series A, $.01 par value; authorized 180,000 shares issued and outstanding)

 

180,000

 

 

180,000

 

 

180,000

 

 

180,000

 

Preferred Stock (Series B, $.01 par value; authorized 165,000 shares issued and outstanding)

 

165,000

 

 

-

 

 

-

 

 

-

 

Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2024 - 58,765,907 / 39,729,941; March 31, 2024 - 58,753,708 / 39,720,724; December 31, 2023 - 58,755,465 / 39,753,138; and June 30, 2023 - 58,771,036 / 39,725,348)

 

585

 

 

584

 

 

583

 

 

583

 

Capital Surplus

 

639,841

 

 

640,663

 

 

636,422

 

 

628,202

 

Accumulated Other Comprehensive Loss

 

(374,361

)

 

(383,581

)

 

(396,688

)

 

(423,431

)

Retained Earnings

 

2,119,140

 

 

2,114,729

 

 

2,107,569

 

 

2,091,289

 

Treasury Stock, at Cost (Shares: June 30, 2024 - 19,035,966; March 31, 2024 - 19,032,984; December 31, 2023 - 19,002,327; and June 30, 2023 - 19,045,688)

 

(1,117,356

)

 

(1,116,418

)

 

(1,113,644

)

 

(1,118,364

)

Total Shareholders' Equity

 

1,612,849

 

 

1,435,977

 

 

1,414,242

 

 

1,358,279

 

Total Liabilities and Shareholders' Equity

$

23,300,768

 

$

23,420,860

 

$

23,733,296

 

$

4,947,936

 

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity Table 6
Accumulated
Preferred Preferred Other
Shares Preferred Shares Preferred Common Comprehensive
Series A Series A Series B Series B Shares Common Capital Income Retained Treasury
(dollars in thousands) Outstanding Stock 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

-

 

-

-

 

-

-

 

 

-

 

-

 

 

-

 

 

70,474

 

 

-

 

 

70,474

 

Other Comprehensive Income

-

 

-

-

 

-

-

 

 

-

 

-

 

 

22,327

 

 

-

 

 

-

 

 

22,327

 

Share-Based Compensation

-

 

-

-

 

-

-

 

 

-

 

7,505

 

 

-

 

 

-

 

 

-

 

 

7,505

 

Preferred Stock Issued, Net

-

 

-

165,000

 

165,000

-

 

 

-

 

(4,386

)

 

-

 

 

-

 

 

-

 

 

160,614

 

Common Stock Issued under Purchase and
Equity Compensation Plans

-

 

-

-

 

-

57,972

 

 

2

 

300

 

 

-

 

 

1,152

 

 

1,283

 

 

2,737

 

Common Stock Repurchased

-

 

-

-

 

-

(81,169

)

 

-

 

-

 

 

-

 

 

-

 

 

(4,995

)

 

(4,995

)

Cash Dividends Declared Common Stock ($1.40 per share)

-

 

-

-

 

-

-

 

 

-

 

-

 

 

-

 

 

(56,117

)

 

-

 

 

(56,117

)

Cash Dividends Declared Preferred Stock

-

 

-

-

 

-

-

 

 

-

 

-

 

 

-

 

 

(3,938

)

 

-

 

 

(3,938

)

Balance as of June 30, 2024

180,000

$

180,000

165,000

$

165,000

39,729,941

 

$

585

$

639,841

 

$

(374,361

)

$

2,119,140

 

$

(1,117,356

)

$

1,612,849

 

 
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

-

 

-

-

 

-

-

 

 

-

 

-

 

 

-

 

 

92,903

 

 

-

 

 

92,903

 

Other Comprehensive Income

-

 

-

-

 

-

-

 

 

-

 

-

 

 

11,227

 

 

-

 

 

-

 

 

11,227

 

Share-Based Compensation

-

 

-

-

 

-

-

 

 

-

 

7,672

 

 

-

 

 

-

 

 

-

 

 

7,672

 

Common Stock Issued under Purchase and
Equity Compensation Plans

-

 

-

-

 

-

94,765

 

 

1

 

(48

)

 

-

 

 

2,286

 

 

986

 

 

3,225

 

Common Stock Repurchased

-

 

-

-

 

-

(205,167

)

 

-

 

-

 

 

-

 

 

-

 

 

(13,931

)

 

(13,931

)

Cash Dividends Declared Common Stock ($1.40 per share)

-

 

-

-

 

-

-

 

 

-

 

-

 

 

-

 

 

(55,874

)

 

-

 

 

(55,874

)

Cash Dividends Declared Preferred Stock

-

 

-

-

 

-

-

 

 

-

 

-

 

 

-

 

 

(3,938

)

 

-

 

 

(3,938

)

Balance as of June 30, 2023

180,000

$

180,000

-

$

-

39,725,348

 

$

583

$

628,202

 

$

(423,431

)

$

2,091,289

 

$

(1,118,364

)

$

1,358,279

 

Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1 Table 7a
Three Months Ended Three Months Ended Three Months Ended
June 30, 2024 March 31, 2024 June 30, 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

$

4.3

$

-

2.40

%

$

4.8

$

-

2.51

%

$

5.1

$

-

1.48

%

Funds Sold

 

455.8

 

6.1

5.31

 

455.9

 

6.1

5.32

 

500.1

 

6.4

5.06

Investment Securities
Available-for-Sale
Taxable

 

2,308.3

 

21.5

3.73

 

2,380.4

 

21.8

3.66

 

2,741.1

 

23.2

3.39

Non-Taxable

 

1.6

 

-

2.01

 

1.7

 

-

1.99

 

9.6

 

0.1

4.40

Held-to-Maturity
Taxable

 

4,837.2

 

21.4

1.77

 

4,926.8

 

21.9

1.79

 

5,231.3

 

23.2

1.78

Non-Taxable

 

34.6

 

0.2

2.10

 

34.7

 

0.2

2.10

 

35.2

 

0.2

2.10

Total Investment Securities

 

7,181.7

 

43.1

2.40

 

7,343.6

 

43.9

2.40

 

8,017.2

 

46.7

2.33

Loans Held for Sale

 

1.4

 

-

6.30

 

2.2

 

-

6.17

 

2.7

 

-

5.50

Loans and Leases 3
Commercial and Industrial

 

1,683.2

 

22.3

5.34

 

1,652.5

 

22.0

5.36

 

1,456.1

 

17.5

4.82

Paycheck Protection Program

 

9.5

 

0.1

2.24

 

10.8

 

-

1.40

 

14.5

 

-

1.30

Commercial Mortgage

 

3,723.6

 

51.6

5.57

 

3,716.6

 

50.5

5.46

 

3,814.9

 

49.3

5.19

Construction

 

321.3

 

6.3

7.85

 

307.9

 

5.6

7.27

 

246.8

 

3.5

5.70

Commercial Lease Financing

 

59.3

 

0.3

2.28

 

58.4

 

0.3

1.87

 

65.4

 

0.3

1.67

Residential Mortgage

 

4,595.2

 

45.6

3.97

 

4,649.9

 

45.0

3.87

 

4,704.0

 

41.2

3.50

Home Equity

 

2,231.7

 

21.8

3.92

 

2,250.1

 

21.1

3.78

 

2,272.3

 

19.0

3.35

Automobile

 

813.5

 

9.1

4.52

 

831.0

 

8.9

4.30

 

879.3

 

7.7

3.53

Other 4

 

394.5

 

6.8

6.95

 

391.6

 

6.5

6.66

 

423.5

 

6.4

6.04

Total Loans and Leases

 

13,831.8

 

163.9

4.76

 

13,868.8

 

159.9

4.63

 

13,876.8

 

144.9

4.19

Other

 

62.5

 

1.2

7.18

 

62.3

 

1.1

6.23

 

94.8

 

2.2

8.94

Total Earning Assets

 

21,537.5

 

214.3

3.99

 

21,737.6

 

211.0

3.89

 

22,496.7

 

200.2

3.56

Cash and Due from Banks

 

233.4

 

240.8

 

316.6

Other Assets

 

1,374.2

 

1,303.2

 

1,301.1

Total Assets

$

23,145.1

$

23,281.6

$

24,114.4

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

$

3,788.5

 

8.8

0.94

$

3,764.2

 

7.7

0.82

$

4,037.4

 

7.5

0.75

Savings

 

8,259.2

 

52.0

2.53

 

8,131.3

 

49.4

2.44

 

7,667.6

 

26.6

1.39

Time

 

2,935.9

 

30.7

4.20

 

3,081.1

 

32.0

4.18

 

2,296.1

 

19.7

3.44

Total Interest-Bearing Deposits

 

14,983.6

 

91.5

2.46

 

14,976.6

 

89.1

2.39

 

14,001.1

 

53.8

1.54

Funds Purchased

 

3.2

 

-

5.37

 

-

 

-

-

 

14.6

 

0.2

5.00

Short-Term Borrowings

 

-

 

-

5.40

 

-

 

-

-

 

195.2

 

2.5

5.09

Securities Sold Under Agreements to Repurchase

 

121.9

 

1.2

3.83

 

150.5

 

1.4

3.79

 

725.5

 

5.4

2.96

Other Debt

 

560.2

 

6.0

4.25

 

560.1

 

5.9

4.25

 

1,255.8

 

13.5

4.31

Total Interest-Bearing Liabilities

 

15,668.9

 

98.7

2.53

 

15,687.2

 

96.4

2.47

 

16,192.2

 

75.4

1.87

Net Interest Income

$

115.6

$

114.6

$

124.8

Interest Rate Spread

1.46

%

1.42

%

1.69

%

Net Interest Margin

2.15

%

2.11

%

2.22

%

Noninterest-Bearing Demand Deposits

 

5,374.8

 

5,567.0

 

6,017.5

Other Liabilities

 

662.9

 

611.3

 

541.6

Shareholders' Equity

 

1,438.5

 

1,416.1

 

1,363.1

Total Liabilities and Shareholders' Equity

$

23,145.1

$

23,281.6

$

24,114.4

 
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 $774,000, $690,000, and $471,000
for the three months ended June 30, 2024, March 31, 2024, and June 30, 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
Average Balances and Interest Rates - Taxable-Equivalent Basis 1 Table 7b
Six Months Ended Six Months Ended
June 30, 2024 June 30, 2023
Average Income / Yield / Average Income / Yield /
(dollars in millions) Balance Expense 2 Rate Balance Expense 2 Rate
Earning Assets
Interest-Bearing Deposits in Other Banks

$

4.5

$

0.1

2.46

%

$

3.4

$

-

2.68

%

Funds Sold

 

455.9

 

12.2

5.31

 

398.6

 

9.8

4.87

Investment Securities
Available-for-Sale
Taxable

 

2,344.3

 

43.2

3.69

 

2,780.4

 

47.0

3.40

Non-Taxable

 

1.7

 

-

2.00

 

9.6

 

0.2

4.39

Held-to-Maturity
Taxable

 

4,882.0

 

43.4

1.78

 

5,283.6

 

47.0

1.78

Non-Taxable

 

34.7

 

0.4

2.10

 

35.2

 

0.4

2.10

Total Investment Securities

 

7,262.7

 

87.0

2.40

 

8,108.8

 

94.6

2.34

Loans Held for Sale

 

1.8

 

0.1

6.22

 

2.1

 

0.1

5.42

Loans and Leases 3
Commercial and Industrial

 

1,667.8

 

44.4

5.35

 

1,433.8

 

33.8

4.75

Paycheck Protection Program

 

10.2

 

0.1

1.79

 

15.7

 

0.1

1.86

Commercial Mortgage

 

3,720.1

 

102.1

5.52

 

3,776.2

 

94.5

5.04

Construction

 

314.6

 

11.8

7.57

 

263.5

 

7.4

5.68

Commercial Lease Financing

 

58.8

 

0.6

2.08

 

66.1

 

0.3

0.76

Residential Mortgage

 

4,622.6

 

90.7

3.92

 

4,685.2

 

81.0

3.46

Home Equity

 

2,240.9

 

42.9

3.85

 

2,255.9

 

37.2

3.33

Automobile

 

822.2

 

18.0

4.41

 

875.6

 

15.0

3.45

Other 4

 

393.1

 

13.3

6.80

 

425.6

 

12.5

5.94

Total Loans and Leases

 

13,850.3

 

323.9

4.70

 

13,797.6

 

281.8

4.11

Other

 

62.4

 

2.0

6.70

 

81.0

 

2.7

6.70

Total Earning Assets

 

21,637.6

 

425.3

3.94

 

22,391.5

 

389.0

3.49

Cash and Due from Banks

 

237.1

 

317.8

Other Assets

 

1,338.6

 

1,281.3

Total Assets

$

23,213.3

$

23,990.6

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

$

3,776.3

 

16.5

0.88

$

4,126.2

 

12.7

0.62

Savings

 

8,195.3

 

101.4

2.49

 

7,837.3

 

47.2

1.21

Time

 

3,008.5

 

62.7

4.19

 

2,044.4

 

31.7

3.12

Total Interest-Bearing Deposits

 

14,980.1

 

180.6

2.42

 

14,007.9

 

91.6

1.32

Funds Purchased

 

1.6

 

-

5.37

 

37.4

 

0.9

4.72

Short-Term Borrowings

 

-

 

-

5.40

 

229.9

 

5.7

4.94

Securities Sold Under Agreements to Repurchase

 

136.2

 

2.6

3.81

 

725.5

 

10.8

2.96

Other Debt

 

560.2

 

11.9

4.25

 

879.8

 

18.7

4.31

Total Interest-Bearing Liabilities

 

15,678.1

 

195.1

2.50

 

15,880.5

 

127.7

1.62

Net Interest Income

$

230.2

$

261.3

Interest Rate Spread

1.44

%

1.87

%

Net Interest Margin

2.13

%

2.34

%

Noninterest-Bearing Demand Deposits

 

5,470.9

 

6,215.7

Other Liabilities

 

637.0

 

546.3

Shareholders' Equity

 

1,427.3

 

1,348.1

Total Liabilities and Shareholders' Equity

$

23,213.3

$

23,990.6

 
1 Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1,464,000 and $966,000
for the six months ended June 30, 2024 and June 30, 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 June 30, 2024
Compared to March 31, 2024
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Investment Securities
Available-for-Sale
Taxable

$

(0.7

)

$

0.4

 

$

(0.3

)

Held-to-Maturity
Taxable

 

(0.4

)

 

(0.1

)

 

(0.5

)

Total Investment Securities

 

(1.1

)

 

0.3

 

 

(0.8

)

Loans and Leases
Commercial and Industrial

 

0.4

 

 

(0.1

)

 

0.3

 

Paycheck Protection Program

 

0.1

 

 

-

 

 

0.1

 

Commercial Mortgage

 

0.1

 

 

1.0

 

 

1.1

 

Construction

 

0.2

 

 

0.5

 

 

0.7

 

Residential Mortgage

 

(0.5

)

 

1.1

 

 

0.6

 

Home Equity

 

(0.2

)

 

0.9

 

 

0.7

 

Automobile

 

(0.2

)

 

0.4

 

 

0.2

 

Other 2

 

-

 

 

0.3

 

 

0.3

 

Total Loans and Leases

 

(0.1

)

 

4.1

 

 

4.0

 

Other

 

-

 

 

0.1

 

 

0.1

 

Total Change in Interest Income

 

(1.2

)

 

4.5

 

 

3.3

 

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

-

 

 

1.1

 

 

1.1

 

Savings

 

0.8

 

 

1.8

 

 

2.6

 

Time

 

(1.5

)

 

0.2

 

 

(1.3

)

Total Interest-Bearing Deposits

 

(0.7

)

 

3.1

 

 

2.4

 

Securities Sold Under Agreements to Repurchase

 

(0.2

)

 

-

 

 

(0.2

)

Other Debt

 

-

 

 

0.1

 

 

0.1

 

Total Change in Interest Expense

 

(0.9

)

 

3.2

 

 

2.3

 

 
Change in Net Interest Income

$

(0.3

)

$

1.3

 

$

1.0

 

 
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8b
Three Months Ended June 30, 2024
Compared to June 30, 2023
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Funds Sold

$

(0.6

)

$

0.3

 

$

(0.3

)

Investment Securities
Available-for-Sale
Taxable

 

(3.9

)

 

2.2

 

 

(1.7

)

Non-Taxable

 

(0.1

)

 

-

 

 

(0.1

)

Held-to-Maturity
Taxable

 

(1.7

)

 

(0.1

)

 

(1.8

)

Total Investment Securities

 

(5.7

)

 

2.1

 

 

(3.6

)

Loans and Leases
Commercial and Industrial

 

2.8

 

 

2.0

 

 

4.8

 

Paycheck Protection Program

 

0.1

 

 

-

 

 

0.1

 

Commercial Mortgage

 

(1.2

)

 

3.5

 

 

2.3

 

Construction

 

1.2

 

 

1.6

 

 

2.8

 

Commercial Lease Financing

 

(0.1

)

 

0.1

 

 

-

 

Residential Mortgage

 

(1.0

)

 

5.4

 

 

4.4

 

Home Equity

 

(0.3

)

 

3.1

 

 

2.8

 

Automobile

 

(0.6

)

 

2.0

 

 

1.4

 

Other 2

 

(0.5

)

 

0.9

 

 

0.4

 

Total Loans and Leases

 

0.4

 

 

18.6

 

 

19.0

 

Other

 

(0.6

)

 

(0.4

)

 

(1.0

)

Total Change in Interest Income

 

(6.5

)

 

20.6

 

 

14.1

 

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

(0.5

)

 

1.8

 

 

1.3

 

Savings

 

2.2

 

 

23.2

 

 

25.4

 

Time

 

6.1

 

 

4.9

 

 

11.0

 

Total Interest-Bearing Deposits

 

7.8

 

 

29.9

 

 

37.7

 

Funds Purchased

 

(0.2

)

 

-

 

 

(0.2

)

Short-Term Borrowings

 

(2.6

)

 

0.1

 

 

(2.5

)

Securities Sold Under Agreements to Repurchase

 

(5.5

)

 

1.3

 

 

(4.2

)

Other Debt

 

(7.4

)

 

(0.1

)

 

(7.5

)

Total Change in Interest Expense

 

(7.9

)

 

31.2

 

 

23.3

 

 
Change in Net Interest Income

$

1.4

 

$

(10.6

)

$

(9.2

)

 
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8c
Six Months Ended June 30, 2024
Compared to June 30, 2023
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks

$

0.1

 

$

-

 

$

0.1

 

Funds Sold

 

1.4

 

 

1.0

 

 

2.4

 

Investment Securities
Available-for-Sale
Taxable

 

(7.7

)

 

3.9

 

 

(3.8

)

Non-Taxable

 

(0.1

)

 

(0.1

)

 

(0.2

)

Held-to-Maturity
Taxable

 

(3.6

)

 

-

 

 

(3.6

)

Total Investment Securities

 

(11.4

)

 

3.8

 

 

(7.6

)

Loans and Leases
Commercial and Industrial

 

5.9

 

 

4.7

 

 

10.6

 

Commercial Mortgage

 

(1.4

)

 

9.0

 

 

7.6

 

Construction

 

1.6

 

 

2.8

 

 

4.4

 

Commercial Lease Financing

 

-

 

 

0.3

 

 

0.3

 

Residential Mortgage

 

(1.1

)

 

10.8

 

 

9.7

 

Home Equity

 

(0.2

)

 

5.9

 

 

5.7

 

Automobile

 

(1.0

)

 

4.0

 

 

3.0

 

Other 2

 

(1.0

)

 

1.8

 

 

0.8

 

Total Loans and Leases

 

2.8

 

 

39.3

 

 

42.1

 

Other

 

(0.6

)

 

(0.1

)

 

(0.7

)

Total Change in Interest Income

 

(7.7

)

 

44.0

 

 

36.3

 

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

(1.2

)

 

5.0

 

 

3.8

 

Savings

 

2.3

 

 

51.9

 

 

54.2

 

Time

 

18.0

 

 

13.0

 

 

31.0

 

Total Interest-Bearing Deposits

 

19.1

 

 

69.9

 

 

89.0

 

Funds Purchased

 

(1.0

)

 

0.1

 

 

(0.9

)

Short-Term Borrowings

 

(6.2

)

 

0.5

 

 

(5.7

)

Securities Sold Under Agreements to Repurchase

 

(10.7

)

 

2.5

 

 

(8.2

)

Other Debt

 

(6.6

)

 

(0.2

)

 

(6.8

)

Total Change in Interest Expense

 

(5.4

)

 

72.8

 

 

67.4

 

 
Change in Net Interest Income

$

(2.3

)

$

(28.8

)

$

(31.1

)

 
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawai‘i Corporation and Subsidiaries
Salaries and Benefits Table 9

Three Months Ended

 

Six Months Ended

June 30,

March 31,

June 30,

 

June 30,

(dollars in thousands)

 

2024

 

2024

 

2023

 

 

 

2024

 

2023

Salaries

$

38,662

$

38,031

$

37,962

 

$

76,693

$

76,579

Incentive Compensation

 

3,109

 

3,090

 

2,984

 

 

6,199

 

6,981

Share-Based Compensation

 

3,296

 

3,799

 

4,096

 

 

7,095

 

7,255

Commission Expense

 

939

 

572

 

775

 

 

1,511

 

1,422

Retirement and Other Benefits

 

3,961

 

4,299

 

3,489

 

 

8,260

 

9,377

Payroll Taxes

 

3,070

 

4,730

 

3,310

 

 

7,800

 

9,158

Medical, Dental, and Life Insurance

 

3,211

 

3,212

 

3,568

 

 

6,423

 

7,432

Separation Expense

 

785

 

482

 

(9

)

 

1,267

 

3,059

Total Salaries and Benefits

$

57,033

$

58,215

$

56,175

 

$

115,248

$

121,263

Bank of Hawai‘i Corporation and Subsidiaries
Loan and Lease Portfolio Balances Table 10

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

 

2024

 

2024

 

2023

 

2023

 

2023

Commercial
Commercial and Industrial

$

1,691,441

$

1,669,482

$

1,652,699

$

1,569,572

$

1,502,676

Paycheck Protection Program

 

7,997

 

10,177

 

11,369

 

12,529

 

13,789

Commercial Mortgage

 

3,741,140

 

3,715,032

 

3,749,016

 

3,784,339

 

3,796,769

Construction

 

315,571

 

323,069

 

304,463

 

251,507

 

236,428

Lease Financing

 

59,388

 

57,817

 

59,939

 

61,522

 

62,779

Total Commercial

 

5,815,537

 

5,775,577

 

5,777,486

 

5,679,469

 

5,612,441

Consumer
Residential Mortgage

 

4,595,586

 

4,616,900

 

4,684,171

 

4,699,140

 

4,721,976

Home Equity

 

2,221,073

 

2,240,946

 

2,264,827

 

2,285,974

 

2,278,105

Automobile

 

806,240

 

825,854

 

837,830

 

856,113

 

878,767

Other 1

 

392,830

 

394,560

 

400,712

 

398,795

 

423,600

Total Consumer

 

8,015,729

 

8,078,260

 

8,187,540

 

8,240,022

 

8,302,448

Total Loans and Leases

$

13,831,266

$

13,853,837

$

13,965,026

$

13,919,491

$

13,914,889

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

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

 

2024

 

2024

 

2023

 

2023

 

2023

Consumer

$

10,382,432

$

10,429,004

$

10,319,809

$

10,036,261

$

10,018,931

Commercial

 

7,995,618

 

8,323,330

 

8,601,224

 

8,564,536

 

8,019,971

Public and Other

 

2,030,452

 

1,924,252

 

2,134,012

 

2,201,512

 

2,469,713

Total Deposits

$

20,408,502

$

20,676,586

$

21,055,045

$

20,802,309

$

20,508,615

 
 
Average Deposits
Three Months Ended

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

 

2024

 

2024

 

2023

 

2023

 

2023

Consumer

$

10,379,724

$

10,313,730

$

10,092,727

$

9,963,690

$

9,977,239

Commercial

 

8,188,685

 

8,334,540

 

8,581,426

 

8,288,891

 

8,138,358

Public and Other

 

1,789,984

 

1,895,370

 

2,029,917

 

2,239,501

 

1,903,004

Total Deposits

$

20,358,393

$

20,543,640

$

20,704,070

$

20,492,082

$

20,018,601

Bank of Hawai‘i Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 11

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

 

2024

 

 

2024

 

 

2023

 

 

2023

 

 

2023

 

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

$

3,681

 

$

13

 

$

39

 

$

43

 

$

17

 

Commercial Mortgage

 

2,601

 

 

2,714

 

 

2,884

 

 

2,996

 

 

3,107

 

Total Commercial

 

6,282

 

 

2,727

 

 

2,923

 

 

3,039

 

 

3,124

 

Consumer
Residential Mortgage

 

2,998

 

 

3,199

 

 

2,935

 

 

3,706

 

 

3,504

 

Home Equity

 

3,227

 

 

3,240

 

 

3,791

 

 

3,734

 

 

3,809

 

Total Consumer

 

6,225

 

 

6,439

 

 

6,726

 

 

7,440

 

 

7,313

 

Total Non-Accrual Loans and Leases

 

12,507

 

 

9,166

 

 

9,649

 

 

10,479

 

 

10,437

 

Foreclosed Real Estate

 

2,672

 

 

2,672

 

 

2,098

 

 

1,040

 

 

1,040

 

Total Non-Performing Assets

$

15,179

 

$

11,838

 

$

11,747

 

$

11,519

 

$

11,477

 

 
Accruing Loans and Leases Past Due 90 Days or More
Consumer
Residential Mortgage

$

4,524

 

$

3,378

 

$

3,814

 

$

3,519

 

$

3,560

 

Home Equity

 

2,025

 

 

1,580

 

 

1,734

 

 

2,172

 

 

2,022

 

Automobile

 

568

 

 

517

 

 

399

 

 

393

 

 

577

 

Other 1

 

733

 

 

872

 

 

648

 

 

643

 

 

633

 

Total Consumer

 

7,850

 

 

6,347

 

 

6,595

 

 

6,727

 

 

6,792

 

Total Accruing Loans and Leases Past Due 90 Days or More

$

7,850

 

$

6,347

 

$

6,595

 

$

6,727

 

$

6,792

 

Total Loans and Leases

$

13,831,266

 

$

13,853,837

 

$

13,965,026

 

$

13,919,491

 

$

13,914,889

 

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

 

0.09

%

 

0.07

%

 

0.07

%

 

0.08

%

 

0.08

%

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

 

0.11

%

 

0.09

%

 

0.08

%

 

0.08

%

 

0.08

%

 
Ratio of Non-Performing Assets to Total Assets

 

0.07

%

 

0.05

%

 

0.05

%

 

0.05

%

 

0.04

%

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

 

0.11

%

 

0.05

%

 

0.05

%

 

0.05

%

 

0.06

%

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

 

0.11

%

 

0.11

%

 

0.11

%

 

0.10

%

 

0.10

%

 
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

 

0.17

%

 

0.13

%

 

0.13

%

 

0.13

%

 

0.13

%

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

$

11,838

 

$

11,747

 

$

11,519

 

$

11,477

 

$

12,124

 

Additions

 

5,257

 

 

1,652

 

 

2,683

 

 

1,318

 

 

1,116

 

Reductions
Payments

 

(844

)

 

(921

)

 

(2,018

)

 

(1,017

)

 

(226

)

Return to Accrual Status

 

(1,018

)

 

(617

)

 

(437

)

 

(259

)

 

(1,527

)

Charge-offs / Write-downs

 

(54

)

 

(23

)

 

-

 

 

-

 

 

(10

)

Total Reductions

 

(1,916

)

 

(1,561

)

 

(2,455

)

 

(1,276

)

 

(1,763

)

Balance at End of Quarter

$

15,179

 

$

11,838

 

$

11,747

 

$

11,519

 

$

11,477

 

 
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

 

Six Months Ended

June 30,

March 31,

June 30,

 

June 30,

(dollars in thousands)

 

2024

 

 

2024

 

 

2023

 

 

 

2024

 

 

2023

 

Balance at Beginning of Period

$

152,148

 

$

152,429

 

$

150,579

 

$

152,429

 

$

151,247

 

 
Loans and Leases Charged-Off
Commercial
Commercial and Industrial

 

(875

)

 

(360

)

 

(203

)

 

(1,235

)

 

(464

)

Consumer
Residential Mortgage

 

(48

)

 

-

 

 

(6

)

 

(48

)

 

(6

)

Home Equity

 

(202

)

 

(35

)

 

(5

)

 

(237

)

 

(55

)

Automobile

 

(1,095

)

 

(1,048

)

 

(1,293

)

 

(2,143

)

 

(2,956

)

Other 1

 

(2,610

)

 

(2,312

)

 

(2,004

)

 

(4,922

)

 

(4,339

)

Total Loans and Leases Charged-Off

 

(4,830

)

 

(3,755

)

 

(3,511

)

 

(8,585

)

 

(7,820

)

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

 

263

 

 

116

 

 

103

 

 

379

 

 

153

 

Consumer
Residential Mortgage

 

63

 

 

42

 

 

58

 

 

105

 

 

119

 

Home Equity

 

113

 

 

184

 

 

578

 

 

297

 

 

762

 

Automobile

 

481

 

 

526

 

 

777

 

 

1,007

 

 

1,449

 

Other 1

 

517

 

 

606

 

 

618

 

 

1,123

 

 

1,292

 

Total Recoveries on Loans and Leases Previously Charged-Off

 

1,437

 

 

1,474

 

 

2,134

 

 

2,911

 

 

3,775

 

Net Charged-Off - Loans and Leases

 

(3,393

)

 

(2,281

)

 

(1,377

)

 

(5,674

)

 

(4,045

)

Provision for Credit Losses:
Loans and Leases

 

3,206

 

 

3,542

 

 

3,167

 

 

6,748

 

 

4,973

 

Unfunded Commitments

 

(806

)

 

(1,542

)

 

(667

)

 

(2,348

)

 

(473

)

Total Provision for Credit Losses

 

2,400

 

 

2,000

 

 

2,500

 

 

4,400

 

 

4,500

 

Balance at End of Period

$

151,155

 

$

152,148

 

$

151,702

 

$

151,155

 

$

151,702

 

 
Components
Allowance for Credit Losses - Loans and Leases

$

147,477

 

$

147,664

 

$

145,367

 

$

147,477

 

$

145,367

 

Reserve for Unfunded Commitments

 

3,678

 

 

4,484

 

 

6,335

 

 

3,678

 

 

6,335

 

Total Reserve for Credit Losses

$

151,155

 

$

152,148

 

$

151,702

 

$

151,155

 

$

151,702

 

 
Average Loans and Leases Outstanding

$

13,831,797

 

$

13,868,800

 

$

13,876,754

 

$

13,850,299

 

$

13,797,559

 

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

 

0.10

%

 

0.07

%

 

0.04

%

 

0.08

%

 

0.06

%

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

 

1.07

%

 

1.07

%

 

1.04

%

 

1.07

%

 

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 13a
Consumer Commercial Treasury Consolidated
(dollars in thousands) Banking Banking and Other Total
Three Months Ended June 30, 2024
Net Interest Income (Loss)

$

98,205

 

$

50,885

 

$

(34,244

)

$

114,846

 

Provision for Credit Losses