Skip to main content

Bank of Hawaii Corporation Second Quarter 2021 Financial Results

Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per common share of $1.68 for the second quarter of 2021, compared with diluted earnings per common share of $1.50 in the previous quarter and $0.98 in the same quarter last year. Net income for the second quarter of 2021 was $67.5 million compared with net income of $59.9 million in the first quarter of 2021 and $38.9 million in the second quarter of 2020.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210726005163/en/

“Bank of Hawaii Corporation continued to perform well during the second quarter of 2021," said Peter Ho, Chairman, President, and CEO. “Core loans and deposits continue to grow, and asset quality remains solid. We are also pleased with the success of our inaugural preferred stock issuance in June, which enhances the strength of our balance sheet and positions us well for future growth.”

The return on average assets for the second quarter of 2021 was 1.23 percent compared with 1.15 percent during the previous quarter and 0.82 percent in the same quarter last year. The return on average common equity for the second quarter of 2021 was 19.60 percent compared with 17.65 percent during the previous quarter and 11.58 percent in the same quarter last year.

For the six-month period ended June 30, 2021, net income was $127.5 million, up from net income of $73.7 million during the same period last year. Diluted earnings per common share were $3.18 for the first half of 2021 compared with diluted earnings per common share of $1.85 for the first half of 2020.

The return on average assets for the six-month period ended June 30, 2021 was 1.19 percent compared with the return on average assets of 0.79 percent for the same six-month period in 2020. The return on average common equity was 18.63 percent for the first half of 2021 compared with the return on average common equity of 11.11 percent for the first half of 2020.

Financial Highlights

Net interest income, on a taxable-equivalent basis, for the second quarter of 2021 was $123.8 million, an increase of $3.0 million from $120.8 million in the first quarter of 2021 and down $3.2 million from $127.0 million in the second quarter of 2020. The net interest margin was 2.37 percent in the second quarter of 2021, a decrease of 6 basis points from 2.43 percent in the previous quarter and 46 basis points from 2.83 percent in the same quarter last year. The decrease in the net interest margin is largely due to higher levels of liquidity from continued strong deposit growth and lower interest rates, partially offset by higher fees from Paycheck Protection Program (“PPP”) loans. Net interest income in the second quarter of 2020 included an interest recovery of $2.9 million.

Net interest income, on a taxable equivalent basis, for the first half of 2021 was $244.7 million, down $8.7 million compared with net interest income of $253.4 million for the first half of 2020. The net interest margin for the first six months of 2021 was 2.40 percent, compared with the net interest margin of 2.90 percent for the same six-month period last year. Analyses of changes in net interest income are included in Tables 8a, 8b, and 8c.

Results for the second quarter of 2021 included a negative provision for credit losses of $16.1 million compared with a negative provision for credit losses of $14.3 million in the previous quarter and provision for credit losses of $40.4 million in the same quarter last year. The provision for credit losses during the first half of 2021 was negative $30.4 million compared with a provision for credit losses of $74.0 million during the same period in 2020.

Noninterest income was $44.4 million in the second quarter of 2021, an increase of $1.4 million compared with noninterest income of $43.0 million in the first quarter of 2021 and a decrease of $6.9 million compared with $51.3 million in the second quarter of 2020. Noninterest income in the second quarter of 2021 included a gain of $3.7 million related to the sale of investment securities, partially offset by lower mortgage banking income. Noninterest income during the second quarter of 2020 included a gain of $14.2 million related to a sale of Visa Class B shares. Noninterest income for the first half of 2021 was $87.4 million compared with noninterest income of $97.4 million for the first half of 2020.

Noninterest expense was $96.5 million in the second quarter of 2021, a decrease of $2.4 million compared with noninterest expense of $98.9 million in the first quarter of 2021 and an increase of $7.6 million compared with $88.9 million in the second quarter of 2020. Noninterest expense during the second quarter of 2021 included fees related to the early termination of FHLB advances and repurchase agreements of $3.2 million offset by a gain on the sale of property of $3.1 million. Noninterest expense in the second quarter of 2021 also included the restoration of incentive compensation that was reduced in the second quarter of 2020. Noninterest expense in the first quarter of 2021 included seasonal payroll expenses of approximately $2.1 million, costs related to the rollout of contactless cards of $1.9 million, and separation expenses of $1.8 million. Noninterest expense for the first half of 2021 was $195.4 million compared with noninterest expense of $185.2 million for the first half of 2020. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The efficiency ratio during the second quarter of 2021 was 57.47 percent compared with 60.45 percent in the previous quarter and 49.95 percent during the same quarter last year. The efficiency ratio for the first half of 2021 was 58.94 percent compared with 52.90 percent in the same period last year.

The effective tax rate for the second quarter of 2021 was 22.84 percent compared with 24.09 percent in the previous quarter and 20.05 percent during the same quarter in 2020. The effective tax rate for the first half of 2021 was 23.43 percent compared with an effective tax rate of 18.95 percent during the same period last year. The increase in the effective tax rate for the first half of 2021 was primarily due to higher pretax book income in the first half of 2021.

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

Asset Quality

The Company’s overall asset quality continued to remain stable during the second quarter of 2021. Total non-performing assets were $19.0 million at June 30, 2021, up from $17.9 million at March 31, 2021 and down from $22.7 million at June 30, 2020. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.16 percent at the end of the second quarter of 2021, compared with 0.15 percent at the end of the first quarter of 2021 and 0.19 percent at the end of the second quarter of 2020.

Accruing loans and leases past due 90 days or more were $9.3 million at June 30, 2021 compared with $10.4 million at March 31, 2021 and $8.9 million at June 30, 2020. Restructured loans on accrual status and not past due 90 days or more were $74.9 million at June 30, 2021 compared with $74.2 million at March 31, 2021 and $59.7 million at June 30, 2020. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loan and lease charge-offs during the second quarter of 2021 were $1.2 million or 0.04 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $4.3 million partially offset by recoveries of $3.1 million. Net loan and lease charge-offs during the first quarter of 2021 were $2.9 million or 0.10 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $6.3 million partially offset by recoveries of $3.4 million. Net loan and lease charge-offs during the second quarter of 2020 were $5.1 million or 0.18 percent annualized of total average loans and leases outstanding and were comprised of $8.3 million of charge-offs partially offset by recoveries of $3.2 million. Net loan and lease charge-offs during the first half of 2021 were $4.1 million or 0.07 percent annualized of total average loans and leases outstanding compared with net charge-offs of $8.9 million or 0.16 percent annualized of total average loans and leases outstanding for the first half of 2020.

The allowance for credit losses on loans and leases was $180.4 million at June 30, 2021, a decrease from $198.3 million at March 31, 2021 and an increase from $173.4 million at June 30, 2020. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.50 percent at June 30, 2021, down from 1.63 percent at March 31, 2021 and up from 1.47 percent at June 30, 2020. The reserve for unfunded commitments was $4.5 million at June 30, 2021, an increase from $3.0 million at the end of the prior quarter and an increase from $2.5 million at the end of the same quarter in 2020. Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets increased to a new record of $22.7 billion at June 30, 2021, an increase compared with total assets of $21.9 billion at March 31, 2021 and $19.8 billion at June 30, 2020. Average total assets were $22.1 billion during the second quarter of 2021, an increase from $21.2 billion during the first quarter of 2021 and $19.2 billion in the second quarter of 2020.

The investment securities portfolio was $8.5 billion at June 30, 2021, up from $7.5 billion at March 31, 2021 and from $6.0 billion at June 30, 2020 due to growth in deposits that continued to outpace loan growth. The portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises and includes $4.5 billion in securities available-for-sale and $3.9 billion in securities held-to-maturity at June 30, 2021. The securities portfolio at March 31, 2021 included $4.0 billion in securities available-for-sale and $3.5 billion in securities held-to-maturity. The securities portfolio at June 30, 2020 included $2.7 billion in securities available-for-sale and $3.3 billion in securities held-to-maturity.

Total loans and leases were $12.0 billion at June 30, 2021, a decrease of 0.8 percent from total loans and leases of $12.1 billion at March 31, 2021 and an increase of 2.0 percent from $11.8 billion at June 30, 2020. Average total loans and leases were $12.1 billion during the second quarter of 2021, an increase from average total loans and leases of $12.0 billion during the first quarter of 2021 and $11.7 billion during the second quarter of 2020.

The commercial loan portfolio was $5.1 billion at June 30, 2021, a decrease of $156.2 million or 3.0 percent from $5.3 billion at March 31, 2021 and up $80.4 million or 1.6 percent from $5.0 billion at June 30, 2020. Commercial loans excluding PPP loans were $4.6 billion at June 30, 2021, an increase of $55.7 million or 1.2 percent from $4.5 billion at March 31, 2021 and an increase of $95.3 million or 2.1 percent from $4.5 billion at June 30, 2020. PPP loans were $513.5 million at June 30, 2021, a decrease of $212.0 million or 29.2 percent from $725.5 million at March 31, 2021 and a decrease of $14.9 million or 2.8 percent from $528.5 million at June 30, 2020. Consumer loans were $6.9 billion at June 30, 2021, an increase of $56.9 million or 0.8 percent from $6.9 billion at March 31, 2021 and up $155.6 million or 2.3 percent from $6.8 billion at June 30, 2020. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $20.2 billion at June 30, 2021, an increase of 3.1 percent from total deposits of $19.6 billion at March 31, 2021 and up 15.8 percent from total deposits of $17.4 billion at June 30, 2020. Average total deposits were $19.7 billion during the second quarter of 2021, an increase from $18.7 billion during the first quarter of 2021 and from $16.7 billion during second quarter of 2020.

Consumer deposits were $9.8 billion at June 30, 2021, an increase of $101.6 million or 1.0 percent from $9.7 billion at March 31, 2021 and an increase of $1.0 billion or 12.3 percent from $8.8 billion at June 30, 2020. Commercial deposits were $8.7 billion at June 30, 2021, an increase of $434.8 million or 5.3 percent from $8.2 billion at March 31, 2021 and an increase of $1.4 billion or 18.9 percent from $7.3 billion at June 30, 2020. Other deposits, including public funds, were $1.6 billion at June 30, 2021, an increase of $76.7 million or 4.9 percent from $1.6 billion at March 31, 2021 and an increase of $284.3 million or 20.9 percent from $1.4 billion at June 30, 2020. Deposit balances are summarized in Table 10.

In the second quarter of 2021, the Company issued $180 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, at a rate of 4.375%. The Company received net proceeds from the offering of $175.5 million after issuance costs. There were no repurchases under the share repurchase program in the second quarter of 2021. Total remaining buyback authority under the share repurchase program was $113.1 million at July 23, 2021.

Total shareholders’ equity was $1.6 billion at June 30, 2021, compared with $1.4 billion at March 31, 2021 and $1.4 billion at June 30, 2020. The Tier 1 Capital Ratio was 13.87 percent at June 30, 2021 compared with 12.35 percent at March 31, 2021 and 12.04 percent at June 30, 2020. The Tier 1 Leverage Ratio at June 30, 2021 was 7.31 percent compared with 6.61 percent at March 31, 2021 and 6.90 percent at June 30, 2020.

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 15, 2021 to shareholders of record at the close of business on August 31, 2021. The Board of Directors previously declared the first quarterly dividend payment of $5.59 per share, equivalent to $0.13975 per depositary share, on its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A for the period covering June 15, 2021 through July 31, 2021. 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 August 2, 2021 to shareholders of record of the preferred stock as of July 16, 2021.

Conference Call Information

The Company will review its second quarter financial results today at 8:00 a.m. Hawaii 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 Hawaii Corporation's website, www.boh.com. The webcast link is https://edge.media-server.com/mmc/p/nujqrorp. The toll-free number for the teleconference is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code “Bank of Hawaii” to access the call. A replay of the conference call will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, July 26, 2021. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the conference ID 3698556 when prompted. In addition, the replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (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 Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2020 and its Form 10-Q for the fiscal quarter ended March 31, 2021, 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 Hawaii Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawaii and the West Pacific. The Company's principal subsidiary, Bank of Hawaii, was founded in 1897. For more information about Bank of Hawaii Corporation, see the Company’s web site, www.boh.com.

Bank of Hawaii Corporation and Subsidiaries
Financial HighlightsTable 1
Three Months EndedSix Months Ended

June 30,

March 31,

June 30,

June 30,

(dollars in thousands, except per share amounts)

2021

2021

2020

2021

2020

For the Period:
Operating Results
Net Interest Income

$

123,514

$

120,569

$

126,691

$

244,083

$

252,657

Provision for Credit Losses

(16,100

)

(14,300

)

40,400

(30,400

)

74,000

Total Noninterest Income

44,431

42,970

51,268

87,401

97,417

Total Noninterest Expense

96,527

98,865

88,892

195,392

185,204

Net Income

67,533

59,949

38,908

127,482

73,650

Basic Earnings Per Common Share

1.69

1.51

0.98

3.20

1.86

Diluted Earnings Per Common Share

1.68

1.50

0.98

3.18

1.85

Dividends Declared Per Common Share

0.67

0.67

0.67

1.34

1.34

 
Performance Ratios
Return on Average Assets

1.23

%

1.15

%

0.82

%

1.19

%

0.79

%

Return on Average Shareholders' Equity

19.17

17.65

11.58

18.43

11.11

Return on Average Common Equity

19.60

17.65

11.58

18.63

11.11

Efficiency Ratio 1

57.47

60.45

49.95

58.94

52.90

Net Interest Margin 2

2.37

2.43

2.83

2.40

2.90

Dividend Payout Ratio 3

39.64

44.37

68.37

41.88

72.04

Average Shareholders' Equity to Average Assets

6.40

6.51

7.04

6.45

7.12

 
Average Balances
Average Loans and Leases

$

12,096,308

$

11,952,587

$

11,727,649

$

12,024,844

$

11,394,178

Average Assets

22,073,569

21,150,670

19,189,581

21,614,669

18,706,092

Average Deposits

19,698,285

18,665,222

16,679,511

19,184,607

16,248,628

Average Shareholders' Equity

1,412,924

1,377,272

1,351,345

1,395,197

1,332,596

 
Per Share of Common Stock
Book Value

$

34.80

$

33.67

$

33.76

$

34.80

$

33.76

Tangible Book Value

34.02

32.89

32.97

34.02

32.97

Market Value
Closing

84.22

89.49

61.41

84.22

61.41

High

95.95

99.10

72.74

99.10

95.53

Low

81.23

75.65

51.15

75.65

46.70

 

June 30,

March 31,

December 31,

June 30,

2021

2021

2020

2020

As of Period End:
Balance Sheet Totals
Loans and Leases

$

12,041,378

$

12,140,703

$

11,940,020

$

11,805,370

Total Assets

22,672,183

21,947,271

20,603,651

19,769,942

Total Deposits

20,169,709

19,556,651

18,211,621

17,423,155

Other Debt

10,437

60,459

60,481

60,524

Total Shareholders' Equity

1,583,531

1,360,221

1,374,507

1,352,082

 
Asset Quality
Non-Performing Assets

$

18,974

$

17,883

$

18,481

$

22,701

Allowance for Credit Losses - Loans and Leases

180,385

198,343

216,252

173,439

Allowance to Loans and Leases Outstanding 4

1.50

%

1.63

%

1.81

%

1.47

%

 
Capital Ratios 5
Common Equity Tier 1 Capital Ratio

12.36

%

12.35

%

12.06

%

12.04

%

Tier 1 Capital Ratio

13.87

12.35

12.06

12.04

Total Capital Ratio

15.13

13.61

13.31

13.29

Tier 1 Leverage Ratio

7.31

6.61

6.71

6.90

Total Shareholders' Equity to Total Assets

6.98

6.20

6.67

6.84

Tangible Common Equity to Tangible Assets 6

6.08

6.06

6.53

6.69

Tangible Common Equity to Risk-Weighted Assets 6

11.85

11.78

11.89

12.07

 
Non-Financial Data
Full-Time Equivalent Employees

2,085

2,058

2,022

2,112

Branches

54

63

65

67

ATMs

312

361

357

367

1

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

2

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

3

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

4

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

5

Regulatory capital ratios as of June 30, 2021 are preliminary.

6

Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 “Reconciliation of Non-GAAP Financial Measures."
Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial MeasuresTable 2

June 30,

March 31,

December 31,

June 30,

(dollars in thousands)

2021

2021

2020

2020

 
Total Shareholders' Equity

$

1,583,531

$

1,360,221

$

1,374,507

$

1,352,082

Less:Preferred Stock

175,487

-

-

-

Goodwill

31,517

31,517

31,517

31,517

Tangible Common Equity

$

1,376,527

$

1,328,704

$

1,342,990

$

1,320,565

 
Total Assets

$

22,672,183

$

21,947,271

$

20,603,651

$

19,769,942

Less:Goodwill

31,517

31,517

31,517

31,517

Tangible Assets

$

22,640,666

$

21,915,754

$

20,572,134

$

19,738,425

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

$

11,614,522

$

11,275,565

$

11,295,077

$

10,941,894

 
Total Shareholders' Equity to Total Assets

6.98

%

6.20

%

6.67

%

6.84

%

Tangible Common Equity to Tangible Assets (Non-GAAP)

6.08

%

6.06

%

6.53

%

6.69

%

 
Tier 1 Capital Ratio

13.87

%

12.35

%

12.06

%

12.04

%

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

11.85

%

11.78

%

11.89

%

12.07

%

Note: Risk-Weighted Assets and Regulatory capital ratios as of June 30, 2021 are preliminary.
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income Table 3
Three Months EndedSix Months Ended

June 30,

March 31,

June 30,

June 30,

(dollars in thousands, except per share amounts)

2021

2021

2020

2021

2020

Interest Income
Interest and Fees on Loans and Leases

$

100,894

$

99,299

$

107,628

$

200,193

$

215,838

Income on Investment Securities
Available-for-Sale

16,467

15,837

14,576

32,304

31,287

Held-to-Maturity

13,576

13,300

16,723

26,876

35,975

Deposits

-

7

1

7

10

Funds Sold

260

137

92

397

638

Other

182

185

125

367

343

Total Interest Income

131,379

128,765

139,145

260,144

284,091

Interest Expense
Deposits

4,152

4,329

7,954

8,481

22,214

Securities Sold Under Agreements to Repurchase

3,470

3,533

4,020

7,003

8,045

Funds Purchased

-

1

18

1

90

Short-Term Borrowings

-

-

22

-

61

Other Debt

243

333

440

576

1,024

Total Interest Expense

7,865

8,196

12,454

16,061

31,434

Net Interest Income

123,514

120,569

126,691

244,083

252,657

Provision for Credit Losses

(16,100

)

(14,300

)

40,400

(30,400

)

74,000

Net Interest Income After Provision for Credit Losses

139,614

134,869

86,291

274,483

178,657

Noninterest Income
Trust and Asset Management

11,682

11,278

10,550

22,960

21,465

Mortgage Banking

3,058

5,862

4,278

8,920

6,973

Service Charges on Deposit Accounts

6,065

6,128

5,097

12,193

12,548

Fees, Exchange, and Other Service Charges

13,807

13,607

9,417

27,414

22,617

Investment Securities Gains (Losses), Net

2,423

(1,203

)

13,216

1,220

12,246

Annuity and Insurance

911

702

883

1,613

1,811

Bank-Owned Life Insurance

2,063

1,917

1,649

3,980

3,229

Other

4,422

4,679

6,178

9,101

16,528

Total Noninterest Income

44,431

42,970

51,268

87,401

97,417

Noninterest Expense
Salaries and Benefits

56,161

56,251

50,715

112,412

105,178

Net Occupancy

5,047

9,090

8,761

14,137

17,716

Net Equipment

8,796

8,878

8,195

17,674

16,651

Data Processing

4,557

6,322

4,416

10,879

9,204

Professional Fees

3,114

3,406

3,061

6,520

6,269

FDIC Insurance

1,669

1,654

1,558

3,323

3,014

Other

17,183

13,264

12,186

30,447

27,172

Total Noninterest Expense

96,527

98,865

88,892

195,392

185,204

Income Before Provision for Income Taxes

87,518

78,974

48,667

166,492

90,870

Provision for Income Taxes

19,985

19,025

9,759

39,010

17,220

Net Income

$

67,533

$

59,949

$

38,908

$

127,482

$

73,650

Basic Earnings Per Common Share

$

1.69

$

1.51

$

0.98

$

3.20

$

1.86

Diluted Earnings Per Common Share

$

1.68

$

1.50

$

0.98

$

3.18

$

1.85

Dividends Declared Per Common Share

$

0.67

$

0.67

$

0.67

$

1.34

$

1.34

Basic Weighted Average Common Shares

39,902,583

39,827,590

39,703,735

39,865,268

39,692,695

Diluted Weighted Average Common Shares

40,122,905

40,071,477

39,832,475

40,096,527

39,873,334

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive IncomeTable 4
Three Months EndedSix Months Ended

June 30,

March 31,

June 30,

June 30,

(dollars in thousands)

2021

2021

2020

2021

2020

Net Income

$

67,533

$

59,949

$

38,908

$

127,482

$

73,650

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

(123

)

(50,050

)

7,730

(50,173

)

49,289

Defined Benefit Plans

442

441

374

883

748

Other Comprehensive Income (Loss)

319

(49,609

)

8,104

(49,290

)

50,037

Comprehensive Income

$

67,852

$

10,340

$

47,012

$

78,192

$

123,687

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of ConditionTable 5
June 30,March 31,December 31,June 30,
(dollars in thousands)

2021

2021

2020

2020

Assets
Interest-Bearing Deposits in Other Banks

$

2,584

$

4,506

$

1,646

$

2,310

Funds Sold

909,730

1,101,631

333,022

800,857

Investment Securities
Available-for-Sale

4,522,941

4,024,763

3,791,689

2,726,478

Held-to-Maturity (Fair Value of $3,965,117; $3,477,346; $3,348,693; and $3,374,294)

3,947,613

3,464,360

3,262,727

3,276,829

Loans Held for Sale

47,490

18,320

82,565

20,711

Loans and Leases

12,041,378

12,140,703

11,940,020

11,805,370

Allowance for Credit Losses

(180,385

)

(198,343

)

(216,252

)

(173,439

)

Net Loans and Leases

11,860,993

11,942,360

11,723,768

11,631,931

Total Earning Assets

21,291,351

20,555,940

19,195,417

18,459,116

Cash and Due from Banks

269,153

286,717

279,420

242,423

Premises and Equipment, Net

198,508

198,107

199,695

198,582

Operating Lease Right-of-Use Assets

97,264

97,750

99,542

97,166

Accrued Interest Receivable

47,046

47,917

49,303

50,645

Foreclosed Real Estate

2,332

2,332

2,332

2,506

Mortgage Servicing Rights

21,473

22,320

19,652

22,904

Goodwill

31,517

31,517

31,517

31,517

Bank-Owned Life Insurance

292,805

291,764

291,480

291,185

Other Assets

420,734

412,907

435,293

373,898

Total Assets

$

22,672,183

$

21,947,271

$

20,603,651

$

19,769,942

 
Liabilities
Deposits
Noninterest-Bearing Demand

$

6,570,232

$

6,227,436

$

5,749,612

$

5,485,015

Interest-Bearing Demand

4,498,825

4,379,243

4,040,733

3,437,654

Savings

7,704,575

7,474,580

6,759,213

6,821,710

Time

1,396,077

1,475,392

1,662,063

1,678,776

Total Deposits

20,169,709

19,556,651

18,211,621

17,423,155

Funds Purchased

-

-

-

-

Short-Term Borrowings

-

-

-

-

Securities Sold Under Agreements to Repurchase

550,490

600,490

600,590

603,206

Other Debt

10,437

60,459

60,481

60,524

Operating Lease Liabilities

105,380

105,820

107,412

104,741

Retirement Benefits Payable

50,260

50,687

51,197

43,833

Accrued Interest Payable

3,879

4,109

5,117

7,775

Taxes Payable and Deferred Taxes

11,844

15,599

2,463

38,297

Other Liabilities

186,653

193,235

190,263

136,329

Total Liabilities

21,088,652

20,587,050

19,229,144

18,417,860

Shareholders' Equity
Preferred Stock ($.01 par value; authorized 180,000 shares; issued and outstanding: June 30, 2021 - 180,000 shares)

180,000

-

-

-

Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2021 - 58,557,754 / 40,465,482; March 31, 2021 - 58,553,365 / 40,394,234; December 31, 2020 - 58,285,624 / 40,119,312; and June 30, 2020 - 58,263,452 / 40,047,694)

580

580

580

580

Capital Surplus

594,261

594,804

591,360

586,946

Accumulated Other Comprehensive Income (Loss)

(41,468

)

(41,787

)

7,822

18,925

Retained Earnings

1,884,431

1,844,057

1,811,979

1,786,351

Treasury Stock, at Cost (Shares: June 30, 2021 - 18,092,272; March 31, 2021 - 18,159,131; December 31, 2020 - 18,166,312; and June 30, 2020 - 18,215,758)

(1,034,273

)

(1,037,433

)

(1,037,234

)

(1,040,720

)

Total Shareholders' Equity

1,583,531

1,360,221

1,374,507

1,352,082

Total Liabilities and Shareholders' Equity

$

22,672,183

$

21,947,271

$

20,603,651

$

19,769,942

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity Table 6
Accum.
Other
Compre-
PreferredCommonhensive
SharesPreferredSharesCommonCapitalIncomeRetainedTreasury
(dollars in thousands)OutstandingStockOutstandingStockSurplus(Loss)EarningsStockTotal
Balance as of December 31, 2020

-

$

-

40,119,312

$

580

$

591,360

$

7,822

$

1,811,979

$

(1,037,234

)

$

1,374,507

Net Income

-

-

-

-

-

-

127,482

-

127,482

Other Comprehensive Loss

-

-

-

-

-

(49,290

)

-

-

(49,290

)

Share-Based Compensation

-

-

-

-

6,122

-

-

-

6,122

Preferred Stock Issued, Net

180,000

180,000

-

-

(4,513

)

-

-

-

175,487

Common Stock Issued under Purchase and Equity Compensation Plans

-

-

383,326

-

1,292

-

(891

)

6,259

6,660

Common Stock Repurchased

-

-

(37,156

)

-

-

-

-

(3,298

)

(3,298

)

Cash Dividends Declared Common Stock ($1.34 per share)

-

-

-

-

-

-

(54,139

)

-

(54,139

)

Balance as of June 30, 2021

180,000

$

180,000

40,465,482

$

580

$

594,261

$

(41,468

)

$

1,884,431

$

(1,034,273

)

$

1,583,531

 
Balance as of December 31, 2019

-

$

-

40,039,695

$

579

$

582,566

$

(31,112

)

$

1,761,415

$

(1,026,616

)

$

1,286,832

Net Income

-

-

-

-

-

-

73,650

-

73,650

Other Comprehensive Income

-

-

-

-

-

50,037

-

-

50,037

Cumulative Change in Accounting Principle

-

-

-

-

-

-

3,632

-

3,632

Share-Based Compensation

-

-

-

-

3,704

-

-

-

3,704

Common Stock Issued under Purchase and Equity Compensation Plans

-

-

195,351

1

676

-

1,333

3,041

5,051

Common Stock Repurchased

-

-

(187,352

)

-

-

-

-

(17,145

)

(17,145

)

Cash Dividends Declared Common Stock ($1.34 per share)

-

-

-

-

-

-

(53,679

)

-

(53,679

)

Balance as of June 30, 2020

-

$

-

40,047,694

$

580

$

586,946

$

18,925

$

1,786,351

$

(1,040,720

)

$

1,352,082

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis

Table 7a

Three Months EndedThree Months EndedThree Months Ended
June 30, 2021March 31, 2021June 30, 2020
AverageIncome/Yield/AverageIncome/Yield/AverageIncome/Yield/
(dollars in millions)BalanceExpenseRateBalanceExpenseRateBalanceExpenseRate
Earning Assets
Interest-Bearing Deposits in Other Banks

$

2.2

$

-

0.04

%

$

3.2

$

-

0.93

%

$

2.6

$

-

0.18

%

Funds Sold

946.2

0.3

0.11

550.6

0.1

0.10

545.9

0.1

0.07

Investment Securities
Available-for-Sale
Taxable

4,290.8

16.3

1.53

4,007.9

15.8

1.57

2,614.1

14.3

2.19

Non-Taxable

12.3

0.1

4.27

12.3

0.1

4.27

32.2

0.4

4.45

Held-to-Maturity
Taxable

3,496.2

13.4

1.53

3,385.8

13.1

1.55

2,957.6

16.4

2.22

Non-Taxable

41.5

0.3

2.53

38.1

0.2

2.55

54.4

0.4

2.66

Total Investment Securities

7,840.8

30.1

1.54

7,444.1

29.2

1.57

5,658.3

31.5

2.22

Loans Held for Sale

25.7

0.2

2.86

26.2

0.2

2.76

23.4

0.2

3.24

Loans and Leases 1
Commercial and Industrial

1,934.5

16.8

3.49

1,904.5

14.3

3.05

1,963.8

17.9

3.67

Commercial Mortgage

2,883.5

21.3

2.96

2,846.0

21.3

3.04

2,622.9

22.3

3.42

Construction

285.6

2.6

3.66

264.1

2.3

3.48

255.8

2.5

3.93

Commercial Lease Financing

105.7

0.4

1.54

106.4

0.4

1.43

110.9

0.5

1.88

Residential Mortgage

4,234.3

35.6

3.35

4,146.6

35.9

3.46

3,939.6

36.0

3.65

Home Equity

1,573.4

12.1

3.09

1,594.1

12.6

3.20

1,665.2

14.3

3.45

Automobile

710.4

6.1

3.45

708.3

6.1

3.51

701.2

6.2

3.55

Other 2

368.9

6.0

6.53

382.6

6.4

6.75

468.2

7.9

6.77

Total Loans and Leases

12,096.3

100.9

3.34

11,952.6

99.3

3.35

11,727.6

107.6

3.68

Other

32.3

0.2

2.26

33.4

0.2

2.21

34.0

0.1

1.47

Total Earning Assets 3

20,943.5

131.7

2.52

20,010.1

129.0

2.60

17,991.8

139.5

3.11

Cash and Due from Banks

256.1

270.7

302.4

Other Assets

874.0

869.9

895.4

Total Assets

$

22,073.6

$

21,150.7

$

19,189.6

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

$

4,452.4

0.7

0.07

$

4,186.4

0.6

0.06

$

3,226.6

0.6

0.07

Savings

7,533.0

1.8

0.09

7,016.6

1.5

0.09

6,691.4

2.2

0.13

Time

1,418.4

1.7

0.47

1,630.0

2.2

0.56

1,826.8

5.2

1.13

Total Interest-Bearing Deposits

13,403.8

4.2

0.12

12,833.0

4.3

0.14

11,744.8

8.0

0.27

Short-Term Borrowings

-

-

-

2.4

-

0.09

57.6

-

0.28

Securities Sold Under Agreements to Repurchase

570.3

3.5

2.41

600.5

3.6

2.35

602.9

4.0

2.64

Other Debt

30.2

0.2

3.22

60.5

0.3

2.22

60.5

0.5

2.91

Total Interest-Bearing Liabilities

14,004.3

7.9

0.22

13,496.4

8.2

0.24

12,465.8

12.5

0.40

Net Interest Income

$

123.8

$

120.8

$

127.0

Interest Rate Spread

2.30

%

2.36

%

2.71

%

Net Interest Margin

2.37

%

2.43

%

2.83

%

Noninterest-Bearing Demand Deposits

6,294.5

5,832.2

4,934.7

Other Liabilities

361.9

444.8

437.8

Shareholders' Equity

1,412.9

1,377.3

1,351.3

Total Liabilities and Shareholders' Equity

$

22,073.6

$

21,150.7

$

19,189.6

1

Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

2

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

3

Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $269,000, $252,000, and $358,000 for the three months ended June 30, 2021, March 31, 2021, and June 30, 2020, respectively.
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis

Table 7b

Six Months EndedSix Months Ended
June 30, 2021June 30, 2020
AverageIncome/Yield/AverageIncome/Yield/
(dollars in millions)BalanceExpenseRate BalanceExpenseRate
Earning Assets
Interest-Bearing Deposits in Other Banks

$

2.7

$

-

0.56

%

$

2.0

$

-

0.96

%

Funds Sold

749.5

0.4

0.11

349.3

0.6

0.36

Investment Securities
Available-for-Sale
Taxable

4,150.2

32.1

1.55

2,658.3

30.8

2.31

Non-Taxable

12.3

0.3

4.27

32.3

0.7

4.43

Held-to-Maturity
Taxable

3,441.3

26.5

1.54

2,996.9

35.4

2.36

Non-Taxable

39.8

0.5

2.54

54.5

0.7

2.67

Total Investment Securities

7,643.6

59.4

1.55

5,742.0

67.6

2.35

Loans Held for Sale

25.9

0.4

2.81

23.3

0.4

3.39

Loans and Leases 1
Commercial and Industrial

1,919.5

31.2

3.27

1,686.5

31.1

3.71

Commercial Mortgage

2,864.9

42.6

3.00

2,586.2

47.4

3.69

Construction

274.9

4.9

3.57

234.6

5.0

4.26

Commercial Lease Financing

106.1

0.8

1.48

111.1

1.1

1.91

Residential Mortgage

4,190.7

71.4

3.41

3,917.5

72.9

3.72

Home Equity

1,583.7

24.7

3.14

1,672.7

29.5

3.55

Automobile

709.3

12.2

3.48

711.1

12.6

3.56

Other 2

375.7

12.4

6.64

474.5

16.3

6.92

Total Loans and Leases

12,024.8

200.2

3.35

11,394.2

215.9

3.80

Other

32.9

0.4

2.24

34.2

0.3

2.01

Total Earning Assets 3

20,479.4

260.8

2.56

17,545.0

284.8

3.26

Cash and Due from Banks

263.4

290.6

Other Assets

871.9

870.5

Total Assets

$

21,614.7

$

18,706.1

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

$

4,320.2

1.3

0.06

$

3,168.3

1.5

0.10

Savings

7,276.2

3.3

0.09

6,596.9

9.3

0.28

Time

1,523.6

3.9

0.52

1,784.9

11.4

1.28

Total Interest-Bearing Deposits

13,120.0

8.5

0.13

11,550.1

22.2

0.39

Short-Term Borrowings

1.2

-

0.09

57.7

0.2

0.52

Securities Sold Under Agreements to Repurchase

585.3

7.0

2.38

603.5

8.0

2.64

Other Debt

45.3

0.6

2.56

63.7

1.0

3.23

Total Interest-Bearing Liabilities

13,751.8

16.1

0.23

12,275.0

31.4

0.51

Net Interest Income

$

244.7

$

253.4

Interest Rate Spread

2.33

%

2.75

%

Net Interest Margin

2.40

%

2.90

%

Noninterest-Bearing Demand Deposits

6,064.6

4,698.5

Other Liabilities

403.1

400.0

Shareholders' Equity

1,395.2

1,332.6

Total Liabilities and Shareholders' Equity

$

21,614.7

$

18,706.1

1

Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

2

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

3

Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $521,000 and $715,000 for the six months ended June 30, 2021 and June 30, 2020, respectively.
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis

Table 8a

Three Months Ended June 30, 2021
Compared to March 31, 2021
(dollars in millions)Volume 1Rate 1Total
Change in Interest Income:
Funds Sold

$

0.1

$

0.1

$

0.2

Investment Securities
Available-for-Sale
Taxable

1.1

(0.6

)

0.5

Held-to-Maturity
Taxable

0.4

(0.1

)

0.3

Non-Taxable

0.1

-

0.1

Total Investment Securities

1.6

(0.7

)

0.9

Loans and Leases
Commercial and Industrial

0.2

2.3

2.5

Commercial Mortgage

0.4

(0.4

)

-

Construction

0.2

0.1

0.3

Residential Mortgage

0.8

(1.1

)

(0.3

)

Home Equity

(0.2

)

(0.3

)

(0.5

)

Other 2

(0.2

)

(0.2

)

(0.4

)

Total Loans and Leases

1.2

0.4

1.6

Total Change in Interest Income

2.9

(0.2

)

2.7

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

-

0.1

0.1

Savings

0.1

0.2

0.3

Time

(0.2

)

(0.3

)

(0.5

)

Total Interest-Bearing Deposits

(0.1

)

-

(0.1

)

Securities Sold Under Agreements to Repurchase

(0.2

)

0.1

(0.1

)

Other Debt

(0.2

)

0.1

(0.1

)

Total Change in Interest Expense

(0.5

)

0.2

(0.3

)

 
Change in Net Interest Income

$

3.4

$

(0.4

)

$

3.0

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 Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8b
Three Months Ended June 30, 2021
Compared to June 30, 2020
(dollars in millions)Volume 1Rate 1Total
Change in Interest Income:
Funds Sold

$

0.1

$

0.1

$

0.2

Investment Securities
Available-for-Sale
Taxable

7.2

(5.2

)

2.0

Non-Taxable

(0.2

)

(0.1

)

(0.3

)

Held-to-Maturity
Taxable

2.7

(5.7

)

(3.0

)

Non-Taxable

(0.1

)

-

(0.1

)

Total Investment Securities

9.6

(11.0

)

(1.4

)

Loans and Leases
Commercial and Industrial

(0.2

)

(0.9

)

(1.1

)

Commercial Mortgage

2.1

(3.1

)

(1.0

)

Construction

0.3

(0.2

)

0.1

Commercial Lease Financing

-

(0.1

)

(0.1

)

Residential Mortgage

2.6

(3.0

)

(0.4

)

Home Equity

(0.8

)

(1.4

)

(2.2

)

Automobile

0.1

(0.2

)

(0.1

)

Other 2

(1.6

)

(0.3

)

(1.9

)

Total Loans and Leases

2.5

(9.2

)

(6.7

)

Other

-

0.1

0.1

Total Change in Interest Income

12.2

(20.0

)

(7.8

)

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

0.2

(0.1

)

0.1

Savings

0.3

(0.7

)

(0.4

)

Time

(1.0

)

(2.5

)

(3.5

)

Total Interest-Bearing Deposits

(0.5

)

(3.3

)

(3.8

)

Securities Sold Under Agreements to Repurchase

(0.2

)

(0.3

)

(0.5

)

Other Debt

(0.3

)

-

(0.3

)

Total Change in Interest Expense

(1.0

)

(3.6

)

(4.6

)

 
Change in Net Interest Income

$

13.2

$

(16.4

)

$

(3.2

)

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 Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8c
Six Months Ended June 30, 2021
Compared to June 30, 2020
(dollars in millions)Volume 1Rate 1Total
Change in Interest Income:
Funds Sold

$

0.4

$

(0.6

)

$

(0.2

)

Investment Securities
Available-for-Sale
Taxable

13.6

(12.3

)

1.3

Non-Taxable

(0.4

)

-

(0.4

)

Held-to-Maturity
Taxable

4.7

(13.6

)

(8.9

)

Non-Taxable

(0.2

)

-

(0.2

)

Total Investment Securities

17.7

(25.9

)

(8.2

)

Loans Held for Sale

0.1

(0.1

)

-

Loans and Leases
Commercial and Industrial

4.0

(3.9

)

0.1

Commercial Mortgage

4.7

(9.5

)

(4.8

)

Construction

0.8

(0.9

)

(0.1

)

Commercial Lease Financing

(0.1

)

(0.2

)

(0.3

)

Residential Mortgage

4.9

(6.4

)

(1.5

)

Home Equity

(1.5

)

(3.3

)

(4.8

)

Automobile

(0.1

)

(0.3

)

(0.4

)

Other 2

(3.3

)

(0.6

)

(3.9

)

Total Loans and Leases

9.4

(25.1

)

(15.7

)

Other

-

0.1

0.1

Total Change in Interest Income

27.6

(51.6

)

(24.0

)

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

0.4

(0.6

)

(0.2

)

Savings

0.9

(6.9

)

(6.0

)

Time

(1.5

)

(6.0

)

(7.5

)

Total Interest-Bearing Deposits

(0.2

)

(13.5

)

(13.7

)

Short-Term Borrowings

(0.1

)

(0.1

)

(0.2

)

Securities Sold Under Agreements to Repurchase

(0.2

)

(0.8

)

(1.0

)

Other Debt

(0.3

)

(0.1

)

(0.4

)

Total Change in Interest Expense

(0.8

)

(14.5

)

(15.3

)

 
Change in Net Interest Income

$

28.4

$

(37.1

)

$

(8.7

)

1

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

2

Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits Table 9
Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,
(dollars in thousands)

2021

2021

2020

2021

2020

Salaries

$

33,413

$

31,569

$

32,739

$

64,982

$

66,225

Incentive Compensation

5,172

5,914

3,141

11,086

3,386

Share-Based Compensation

3,174

2,584

2,021

5,758

3,312

Commission Expense

2,599

2,436

1,647

5,035

3,021

Retirement and Other Benefits

5,289

5,517

4,446

10,806

9,152

Payroll Taxes

3,026

3,968

2,782

6,994

7,325

Medical, Dental, and Life Insurance

3,204

2,424

3,830

5,628

7,972

Separation Expense

284

1,839

109

2,123

4,785

Total Salaries and Benefits

$

56,161

$

56,251

$

50,715

$

112,412

$

105,178

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

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

2021

2021

2020

2020

2020

Commercial
Commercial and Industrial

$

1,257,305

$

1,288,496

$

1,357,610

$

1,376,843

$

1,428,481

PPP 1

513,513

725,485

517,683

531,639

528,458

Commercial Mortgage

2,944,435

2,859,246

2,854,829

2,745,611

2,707,534

Construction

277,393

281,164

259,798

250,943

245,099

Lease Financing

110,500

104,980

110,766

111,831

113,187

Total Commercial

5,103,146

5,259,371

5,100,686

5,016,867

5,022,759

Consumer
Residential Mortgage

4,264,180

4,216,976

4,130,513

4,044,228

3,989,393

Home Equity

1,594,781

1,577,500

1,604,538

1,605,486

1,640,887

Automobile

714,729

710,407

708,800

709,937

700,702

Other 2

364,542

376,449

395,483

417,090

451,629

Total Consumer

6,938,232

6,881,332

6,839,334

6,776,741

6,782,611

Total Loans and Leases

$

12,041,378

$

12,140,703

$

11,940,020

$

11,793,608

$

11,805,370

 
 
Deposits

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

2021

2021

2020

2020

2020

Consumer

$

9,848,285

$

9,746,713

$

9,347,725

$

8,903,808

$

8,766,885

Commercial

8,675,909

8,241,102

7,302,832

7,159,531

7,295,033

Public and Other

1,645,515

1,568,836

1,561,064

1,675,544

1,361,237

Total Deposits

$

20,169,709

$

19,556,651

$

18,211,621

$

17,738,883

$

17,423,155

1

The PPP amounts presented, which are reported net of deferred costs and fees, were previously included as a component of the Commercial and Industrial loan class.

2

Comprised of other revolving credit, installment, and lease financing.
Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 11

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

2021

2021

2020

2020

2020

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

$

258

$

293

$

441

$

475

$

459

Commercial Mortgage

8,413

8,503

8,527

8,615

8,672

Total Commercial

8,671

8,796

8,968

9,090

9,131

Consumer
Residential Mortgage

2,437

1,804

3,223

3,543

5,888

Home Equity

5,534

4,951

3,958

3,661

5,176

Total Consumer

7,971

6,755

7,181

7,204

11,064

Total Non-Accrual Loans and Leases

16,642

15,551

16,149

16,294

20,195

Foreclosed Real Estate

2,332

2,332

2,332

2,332

2,506

Total Non-Performing Assets

$

18,974

$

17,883

$

18,481

$

18,626

$

22,701

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

$

-

$

9

$

-

$

-

$

-

Total Commercial

-

9

-

-

-

Consumer
Residential Mortgage

$

4,069

$

4,069

$

5,274

$

6,607

$

4,937

Home Equity

4,498

4,906

3,187

2,571

3,519

Automobile

277

604

925

156

133

Other 1

434

828

1,160

258

296

Total Consumer

9,278

10,407

10,546

9,592

8,885

Total Accruing Loans and Leases Past Due 90 Days or More

$

9,278

$

10,416

$

10,546

$

9,592

$

8,885

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

$

74,926

$

74,216

$

68,065

$

58,650

$

59,713

Total Loans and Leases

$

12,041,378

$

12,140,703

$

11,940,020

$

11,793,608

$

11,805,370

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

0.14

%

0.13

%

0.14

%

0.14

%

0.17

%

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

0.16

%

0.15

%

0.15

%

0.16

%

0.19

%

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

0.17

%

0.17

%

0.18

%

0.18

%

0.18

%

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

0.15

%

0.13

%

0.14

%

0.14

%

0.20

%

 
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

0.23

%

0.23

%

0.24

%

0.24

%

0.27

%

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

$

17,883

$

18,481

$

18,626

$

22,701

$

20,604

Additions

2,229

2,992

434

938

5,856

Reductions
Payments

(722

)

(2,481

)

(490

)

(3,729

)

(2,736

)

Return to Accrual Status

(416

)

(1,014

)

-

(1,035

)

(822

)

Sales of Foreclosed Real Estate

-

-

-

(175

)

-

Charge-offs/Write-downs

-

(95

)

(89

)

(74

)

(201

)

Total Reductions

(1,138

)

(3,590

)

(579

)

(5,013

)

(3,759

)

Balance at End of Quarter

$

18,974

$

17,883

$

18,481

$

18,626

$

22,701

1

Comprised of other revolving credit, installment, and lease financing.
Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit LossesTable 12
Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,
(dollars in thousands)

2021

2021

2020

2021

2020

Balance at Beginning of Period

$

203,779

$

221,303

$

141,467

$

221,303

116,849

 
CECL Adoption (Day 1) Impact

-

-

-

-

(5,072

)

 
Loans and Leases Charged-Off
Commercial
Commercial and Industrial

(456

)

(248

)

(656

)

(704

)

(1,349

)

Consumer
Residential Mortgage

(115

)

(4

)

(64

)

(119

)

(84

)

Home Equity

(107

)

(16

)

(273

)

(123

)

(273

)

Automobile

(1,209

)

(2,109

)

(3,114

)

(3,318

)

(5,614

)

Other 1

(2,422

)

(3,914

)

(4,176

)

(6,336

)

(8,140

)

Total Loans and Leases Charged-Off

(4,309

)

(6,291

)

(8,283

)

(10,600

)

(15,460

)

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

144

112

1,524

256

1,813

Commercial Mortgage

-

-

-

-

40

Consumer
Residential Mortgage

481

955

118

1,436

381

Home Equity

527

533

321

1,060

1,297

Automobile

1,172

919

547

2,091

1,552

Other 1

801

856

662

1,657

1,526

Total Recoveries on Loans and Leases Previously Charged-Off

3,125

3,375

3,172

6,500

6,609

Net Charged-Off - Loans and Leases

(1,184

)

(2,916

)

(5,111

)

(4,100

)

(8,851

)

Net Charged-Off - Accrued Interest Receivable

(124

)

(308

)

-

(432

)

Provision for Credit Losses:
Loans and Leases

(16,774

)

(14,993

)

40,400

(31,767

)

74,000

Accrued Interest Receivable

(828

)

-

-

(828

)

-

Unfunded Commitments

1,502

693

(798

)

2,195

(968

)

Balance at End of Period 2

$

186,371

$

203,779

$

175,958

$

186,371

$

175,958

 
Components
Allowance for Credit Losses - Loans and Leases

$

180,385

198,343

173,439

$

180,385

173,439

Allowance for Credit Losses - Accrued Interest Receivable

1,440

2,392

-

1,440

-

Reserve for Unfunded Commitments

4,546

3,044

2,519

4,546

2,519

Total Reserve for Credit Losses

$

186,371

$

203,779

$

175,958

$

186,371

$

175,958

 
Average Loans and Leases Outstanding

$

12,096,308

$

11,952,587

$

11,727,649

$

12,024,844

$

11,394,178

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

0.04

%

0.10

%

0.18

%

0.07

%

0.16

%

Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 3

1.50

%

1.63

%

1.47

%

1.50

%

1.47

%

1

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

2

Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.

3

The numerator comprises the Allowance for Credit Losses - Loans and Leases.
Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial InformationTable 13a
ConsumerCommercialTreasuryConsolidated
(dollars in thousands)BankingBankingand OtherTotal
Three Months Ended June 30, 2021
Net Interest Income

$

71,167

$

49,038

$

3,309

$

123,514

Provision for Credit Losses

987

197

(17,284

)

(16,100

)

Net Interest Income After Provision for Credit Losses

70,180

48,841

20,593

139,614

Noninterest Income

32,600

6,575

5,256

44,431

Noninterest Expense

(72,868

)

(15,742

)

(7,917

)

(96,527

)

Income Before Income Taxes

29,912

39,674

17,932

87,518

Provision for Income Taxes

(7,365

)

(9,703

)

(2,917

)

(19,985

)

Net Income

$

22,547

$

29,971

$

15,015

$

67,533

Total Assets as of June 30, 2021

$

7,479,986

$

5,127,431

$

10,064,766

$

22,672,183

 
Three Months Ended June 30, 2020 1
Net Interest Income

$

73,221

$

51,219

$

2,251

$

126,691

Provision for Credit Losses

6,137

(1,025

)

35,288

40,400

Net Interest Income (Loss) After Provision for Credit Losses

67,084

52,244

(33,037

)

86,291

Noninterest Income

28,943

7,076

15,249

51,268

Noninterest Expense

(70,590

)

(14,776

)

(3,526

)

(88,892

)

Income (Loss) Before Income Taxes

25,437

44,544

(21,314

)

48,667

Provision for Income Taxes

(6,492

)

(10,940

)

7,673

(9,759

)

Net Income (Loss)

$

18,945

$

33,604

$

(13,641

)

$

38,908

Total Assets as of June 30, 2020 1

$

7,416,090

$

5,033,169

$

7,320,683

$

19,769,942

1

Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial InformationTable 13b
ConsumerCommercialTreasuryConsolidated
(dollars in thousands)BankingBankingand OtherTotal
Six Months Ended June 30, 2021
Net Interest Income

$

140,929

$

96,181

$

6,973

$

244,083

Provision for Credit Losses

3,853

247

(34,500

)

(30,400

)

Net Interest Income After Provision for Credit Losses

137,076

95,934

41,473

274,483

Noninterest Income

66,298

14,433

6,670

87,401

Noninterest Expense

(151,049

)

(31,419

)

(12,924

)

(195,392

)

Income Before Income Taxes

52,325

78,948

35,219

166,492

Provision for Income Taxes

(12,839

)

(19,261

)

(6,910

)

(39,010

)

Net Income

$

39,486

$

59,687

$

28,309

$

127,482

Total Assets as of June 30, 2021

$

7,479,986

$

5,127,431

$

10,064,766

$

22,672,183

 
Six Months Ended June 30, 2020 1
Net Interest Income

$

147,135

$

96,456

$

9,066

$

252,657

Provision for Credit Losses

9,588

(735

)

65,147

74,000

Net Interest Income (Loss) After Provision for Credit Losses

137,547

97,191

(56,081

)

178,657

Noninterest Income

61,533

18,811

17,073

97,417

Noninterest Expense

(141,336

)

(32,122

)

(11,746

)

(185,204

)

Income (Loss) Before Income Taxes

57,744

83,880

(50,754

)

90,870

Provision for Income Taxes

(14,608

)

(20,494

)

17,882

(17,220

)

Net Income (Loss)

$

43,136

$

63,386

$

(32,872

)

$

73,650

Total Assets as of June 30, 2020 1

$

7,416,090

$

5,033,169

$

7,320,683

$

19,769,942

1

Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial DataTable 14
Three Months Ended

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands, except per share amounts)

2021

2021

2020

2020

2020

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

$

100,894

$

99,299

$

98,471

$

103,189

$

107,628

Income on Investment Securities
Available-for-Sale

16,467

15,837

15,449

14,558

14,576

Held-to-Maturity

13,576

13,300

14,113

15,967

16,723

Deposits

-

7

1

3

1

Funds Sold

260

137

115

149

92

Other

182

185

167

151

125

Total Interest Income

131,379

128,765

128,316

134,017

139,145

Interest Expense
Deposits

4,152

4,329

4,861

5,891

7,954

Securities Sold Under Agreements to Repurchase

3,470

3,533

3,614

3,622

4,020

Funds Purchased

-

1

5

-

18

Short-Term Borrowings

-

-

-

1

22

Other Debt

243

333

337

337

440

Total Interest Expense

7,865

8,196

8,817

9,851

12,454

Net Interest Income

123,514

120,569

119,499

124,166

126,691

Provision for Credit Losses

(16,100

)

(14,300

)

15,200

28,600

40,400

Net Interest Income After Provision for Credit Losses

139,614

134,869

104,299

95,566

86,291

Noninterest Income
Trust and Asset Management

11,682

11,278

11,239

10,752

10,550

Mortgage Banking

3,058

5,862

6,851

4,047

4,278

Service Charges on Deposit Accounts

6,065

6,128

6,335

6,027

5,097

Fees, Exchange, and Other Service Charges

13,807

13,607

12,143

12,296

9,417

Investment Securities Gains (Losses), Net

2,423

(1,203

)

(1,193

)

(1,121

)

13,216

Annuity and Insurance

911

702

670

881

883

Bank-Owned Life Insurance

2,063

1,917

2,353

1,806

1,649

Other

4,422

4,679

6,860

7,046

6,178

Total Noninterest Income

44,431

42,970

45,258

41,734

51,268

Noninterest Expense
Salaries and Benefits

56,161

56,251

50,200

51,951

50,715

Net Occupancy

5,047

9,090

14,536

7,281

8,761

Net Equipment

8,796

8,878

9,574

9,223

8,195

Data Processing

4,557

6,322

4,604

4,691

4,416

Professional Fees

3,114

3,406

3,174

2,743

3,061

FDIC Insurance

1,669

1,654

1,484

1,282

1,558

Other

17,183

13,264

15,082

12,778

12,186

Total Noninterest Expense

96,527

98,865

98,654

89,949

88,892

Income Before Provision for Income Taxes

87,518

78,974

50,903

47,351

48,667

Provision for Income Taxes

19,985

19,025

8,589

9,511

9,759

Net Income

$

67,533

$

59,949

$

42,314

$

37,840

$

38,908

 
Basic Earnings Per Common Share

$

1.69

$

1.51

$

1.06

$

0.95

$

0.98

Diluted Earnings Per Common Share

$

1.68

$

1.50

$

1.06

$

0.95

$

0.98

 
Balance Sheet Totals
Loans and Leases

$

12,041,378

$

12,140,703

$

11,940,020

$

11,793,608

$

11,805,370

Total Assets

22,672,183

21,947,271

20,603,651

20,109,489

19,769,942

Total Deposits

20,169,709

19,556,651

18,211,621

17,738,883

17,423,155

Total Shareholders' Equity

1,583,531

1,360,221

1,374,507

1,361,739

1,352,082

 
Performance Ratios
Return on Average Assets

1.23

%

1.15

%

0.83

%

0.76

%

0.82

%

Return on Average Shareholders' Equity

19.17

17.65

12.26

11.01

11.58

Return on Average Common Equity

19.60

17.65

12.26

11.01

11.58

Efficiency Ratio 1

57.47

60.45

59.88

54.22

49.95

Net Interest Margin 2

2.37

2.43

2.48

2.67

2.83

1

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

2

Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends Table 15
Five Months EndedYear Ended
($ in millions; jobs in thousands)May 31, 2021December 31, 2020December 31, 2019
Hawaii Economic Trends
State General Fund Revenues 1

$

3,290.3

22.4

%

$

6,415.1

(12.3

)%

$

7,316.5

5.5

%

General Excise and Use Tax Revenue 1

$

1,395.8

(2.3

)%

$

3,038.8

(15.6

)%

$

3,602.2

5.1

%

Jobs 2

596.5

588.2

659.7

 
June 30,December 31,
(spot rates)

2021

2020

2019

Unemployment, seasonally adjusted 3
Statewide

7.7

%

10.3

%

2.1

%

 
Oahu

6.7

9.3

2.0

Island of Hawaii

7.5

10.1

2.5

Maui

10.2

14.3

2.0

Kauai

10.8

13.9

2.1

 
June 30,December 31,
(percentage change, except months of inventory)

2021

2020

2019

2018

Housing Trends (Single Family Oahu) 4
Median Home Price

21.0

%

5.2

%

(0.1

)%

4.6

%

Home Sales Volume (units)

32.9

%

2.3

%

3.9

%

(7.7

)%

Months of Inventory

1.2

1.4

2.5

2.8

 
Monthly Visitor Arrivals,Percentage Change
(in thousands)Not Seasonally Adjustedfrom Previous Year
Tourism 5
May 31, 2021

629.7

6,807.4

April 30, 2021

484.1

10,506.3

March 31, 2021

439.8

1.1

February 28, 2021

235.3

(71.6

)

January 31, 2021

172.0

(80.1

)

December 31, 2020

235.8

(75.2

)

November 30, 2020

183.8

(77.3

)

October 31, 2020

76.6

(90.4

)

September 30, 2020

18.9

(97.4

)

August 31, 2020

22.3

(97.6

)

July 31, 2020

22.6

(97.7

)

June 30, 2020

17.1

(98.2

)

May 31, 2020

9.1

(98.9

)

April 30, 2020

4.6

(99.5

)

March 31, 2020

434.9

(53.7

)

February 29, 2020

828.1

5.8

January 31, 2020

862.6

5.1

December 31, 2019

952.4

5.8

November 30, 2019

809.1

3.9

October 31, 2019

796.2

4.3

September 30, 2019

738.2

3.1

August 31, 2019

926.4

9.6

July 31, 2019

995.2

5.9

June 30, 2019

951.6

6.1

May 31, 2019

841.4

4.6

April 30, 2019

856.3

6.6

March 31, 2019

939.1

3.9

February 28, 2019

782.7

0.5

January 31, 2019

820.6

3.0

1

Source: Hawaii Department of Business, Economic Development & Tourism

2

Source: U. S. Bureau of Labor Statistics

3

Source: UHERO

4

Source: Honolulu Board of REALTORS

5

Source: Hawaii Tourism Authority

Contacts:

Media Inquiries
Melissa Torres-Laing
Email: Melissa.Torres-Laing@boh.com
Telephone: 808-694-8384
Mobile: 808-859-1703

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.