- 2023 Diluted Earnings Per Common Share $4.14
- 2023 Net Income $171.2 Million
- Diluted Earnings Per Common Share $0.72 for the Fourth
Quarter of 2023
- Net Income $30.4 Million for the Fourth Quarter of
2023
- Board of Directors Declares Dividend of $0.70 Per Common
Share
- Industry-wide FDIC Special Assessment Resulted in a $14.7
Million Charge in the Fourth Quarter of 2023
Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted
earnings per common share of $4.14 for the full year of 2023
compared with diluted earnings per common share of $5.48 for the
full year of 2022. An industry-wide FDIC Special Assessment
resulted in a $14.7 million charge in the fourth quarter of 2023
which negatively impacted diluted earnings per common share by
$0.29. Net income for the year was $171.2 million, down 24.2% from
the previous year. The return on average common equity for the full
year of 2023 was 13.89% compared with 17.83% in 2022.
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“Bank of Hawai‘i managed through a challenging economic
environment in 2023 and delivered strong financial results,” said
Peter Ho, Chairman, President, and CEO. “Over the past year, we
have demonstrated the resilience of our brand, deposit base and
distinct business model. Total deposits were up 2.1% from the prior
year and our credit quality remained excellent with non-performing
assets of 0.08% at quarter end and net charge offs of 0.05% in the
quarter. Our noninterest income held steady and we continued to
demonstrate disciplined expense management. We focused on
strengthening our balance sheet during the year and we are well
positioned to deliver strong results in 2024.”
Diluted earnings per common share for the fourth quarter of 2023
was $0.72, compared with diluted earnings per common share of $1.17
in the previous quarter and $1.50 in the same quarter of 2022. Net
income for the fourth quarter of 2023 was $30.4 million, down 36.5%
from the previous quarter and down 50.4% from the same quarter of
2022. The return on average common equity for the fourth quarter of
2023 was 9.55% compared with 15.38% in the previous quarter and
21.28% in the same quarter of 2022.
Financial Highlights
Net interest income for the fourth quarter of 2023 was $115.8
million, a decrease of 4.3% from the previous quarter and a
decrease of 17.7% from the same quarter of 2022. The decrease in
net interest income in the fourth quarter of 2023 was primarily due
to higher funding costs, partially offset by higher earning asset
yields.
Net interest margin was 2.13% in the fourth quarter of 2023,
unchanged from the previous quarter and a decrease of 47 basis
points from the same quarter of 2022. Net interest margin in the
fourth quarter of 2023 was negatively impacted by higher funding
costs, partially offset by higher earning asset yields.
The average yield on loans and leases was 4.54% in the fourth
quarter of 2023, up 20 basis points from the prior quarter and up
73 basis points from the same quarter of 2022. The average yield on
total earning assets was 3.85% in the fourth quarter of 2023, up 13
basis points from the prior quarter and up 68 basis points from the
same quarter of 2022. The average cost of interest-bearing deposits
was 2.30% in the fourth quarter of 2023, up 35 basis points from
the prior quarter and up 161 basis points from the same quarter of
2022. The average cost of total deposits, including
noninterest-bearing deposits, was 1.67%, up 27 basis points from
the prior quarter and up 121 basis points from the same quarter of
2022. The changes in yields and rates over the linked quarter and
year over year period reflected the higher rate environment,
including higher benchmark interest rates.
Noninterest income was $42.3 million in the fourth quarter of
2023, a decrease of 16.0% from the previous quarter and an increase
of 2.7% from the same period in 2022. Noninterest income in the
third quarter of 2023 included a $14.7 million gain from the early
termination of private repurchase agreements, partially offset by a
$4.6 million net loss related to investment securities sales and a
negative $0.8 million adjustment related to a change in the Visa
Class B conversion ratio. Adjusted for these items in the prior
quarter, noninterest income increased by 3.0% quarter over
quarter.
Noninterest expense was $116.0 million in the fourth quarter of
2023, an increase of 9.8% from the previous quarter and an increase
of 12.9% from the same quarter of 2022. Noninterest expense in the
fourth quarter of 2023 included an industry-wide FDIC Special
Assessment of $14.7 million and $1.7 million of expense savings
that are not expected to recur in 2024. Noninterest expense in the
third quarter of 2023 included separation expenses of $2.1 million
and extraordinary expenses related to the Maui wildfires of $0.4
million. Adjusted core noninterest expense in the fourth quarter of
2023 was $102.9 million, down slightly from adjusted noninterest
expense in the previous quarter and up 0.2% from the noninterest
expense in the same period in 2022.
The effective tax rate for the fourth quarter of 2023 was 23.25%
compared with 24.76% in the previous quarter and 22.40% during the
same quarter of 2022. The decrease in the effective tax rate on a
linked quarter basis was mainly due to discrete tax items
recognized in the fourth quarter. The year over year increase was
primarily due to tax benefits in the fourth quarter of 2022 related
to our agreement to sell assets that terminated certain leveraged
leases.
Asset Quality
The Company’s overall asset quality remained strong during the
fourth quarter of 2023. Provision for credit losses for the fourth
quarter of 2023 was $2.5 million compared with $2.0 million in the
previous quarter and $0.2 million in the same quarter of 2022.
Total non-performing assets were $11.7 million at December 31,
2023, up $0.2 million from September 30, 2023 and down $0.9 million
from December 31, 2022. Non-performing assets as a percentage of
total loans and leases and foreclosed real estate were 0.08% at the
end of the quarter, unchanged from the end of the prior quarter and
a decrease of 1 basis point from the same quarter of 2022.
Net loan and lease charge-offs during the fourth quarter of 2023
were $1.7 million or 5 basis points annualized of total average
loans and leases outstanding. Net loan and lease charge-offs for
the fourth quarter of 2023 were comprised of charge-offs of $3.5
million partially offset by recoveries of $1.8 million. Compared to
the prior quarter, net loan and lease charge-offs decreased by $0.3
million or 1 basis point annualized on total average loans and
leases outstanding. Compared to the same quarter of 2022, net loan
and lease charge-offs decreased by $0.1 million.
The allowance for credit losses on loans and leases was $146.4
million at December 31, 2023, an increase of $1.1 million from
September 30, 2023 and an increase of $2.0 million from December
31, 2022. The ratio of the allowance for credit losses to total
loans and leases outstanding was 1.05% at the end of the quarter,
up 1 basis point from the end of the prior quarter and down 1 basis
point from the same quarter of 2022.
Balance Sheet
Total assets were $23.7 billion at December 31, 2023, an
increase of 0.8% from September 30, 2023 and an increase of 0.5%
from December 31, 2022. The increase from the prior quarter was
primarily due to an increase in funds sold. The increase from the
same period in 2022 was primarily due to increases in funds sold
and loans and leases partially offset by a decrease in investment
securities.
The investment securities portfolio was $7.4 billion at December
31, 2023, a decrease of 0.9% from September 30, 2023 and a decrease
of 10.3% from December 31, 2022. The decrease from the prior
quarter was mainly due to cashflows from the portfolio not being
reinvested into securities. The decrease from the same period in
2022 was primarily due to $159.1 million of investment securities
sold in the third quarter of 2023 and cashflows from the portfolio
not being reinvested into securities. The investment portfolio
remains largely comprised of securities issued by U.S. government
agencies and U.S. government-sponsored enterprises.
Total loans and leases were $14.0 billion at December 31, 2023,
an increase of 0.3% from September 30, 2023 and an increase of 2.3%
from December 31, 2022. Total commercial loans were $5.8 billion at
December 31, 2023, an increase of 1.7% from the prior quarter and
an increase of 5.7% from the same quarter of 2022, primarily due to
an increase in our commercial and industrial portfolio. Total
consumer loans were $8.2 billion as of December 31, 2023, a
decrease of 0.6% from the prior quarter and an increase of 0.1%
from the same period in 2022.
Total deposits were $21.1 billion at December 31, 2023, an
increase of 1.2% from September 30, 2023 and an increase of 2.1%
from December 31, 2022. Noninterest-bearing deposits made up 29% of
total deposit balances as of December 31, 2023, up from 27% as of
September 30, 2023, and down from 33% as of December 31, 2022.
Average total deposits were $20.7 billion for the fourth quarter of
2023, up 1.0% from $20.5 billion in the prior quarter, and up 1.8%
from $20.3 billion in the fourth quarter of 2022. As of December
31, 2023, insured and uninsured but collateralized deposits
represent 58% of total deposit balances, relatively flat from 58%
as of September 30, 2023, and up from 57% as of December 31, 2022.
As of December 31, 2023, our readily available liquidity of $10.2
billion exceeded total uninsured and uncollateralized deposits of
$8.9 billion.
Capital and Dividends
The Company’s capital levels increased quarter over quarter and
remain well above regulatory well-capitalized minimums.
The Tier 1 Capital Ratio was 12.56% at December 31, 2023
compared with 12.53% at September 30, 2023 and 12.15% at December
31, 2022. The Tier 1 Leverage Ratio was 7.51% at December 31, 2023,
up 29 basis points from 7.22% at September 30, 2023 and up 14 basis
points from 7.37% at December 31, 2022. The increases from the
prior quarter were due to an increase in Tier 1 capital as a result
of retained earnings growth and a decrease in average total assets.
The increases from the same period in 2022 were mainly due to an
increase in Tier 1 capital as a result of retained earnings
growth.
No shares of common stock were repurchased under the share
repurchase program in the fourth quarter of 2023. Total remaining
buyback authority under the share repurchase program was $126.0
million at December 31, 2023.
The Company’s Board of Directors declared a quarterly cash
dividend of $0.70 per share on the Company’s outstanding common
shares. The dividend will be payable on March 14, 2024 to
shareholders of record at the close of business on February 29,
2024.
On January 5, 2024, the Company announced that the Board of
Directors declared the quarterly dividend payment of $10.94 per
share, equivalent to $0.2735 per depositary share, on its preferred
stock. The depositary shares representing the Series A Preferred
Stock are traded on the NYSE under the symbol “BOH.PRA.” The
dividend will be payable on February 1, 2024 to shareholders of
record of the preferred stock as of the close of business on
January 16, 2024.
Conference Call
Information
The Company will review its fourth quarter financial results
today at 8:00 a.m. Hawai‘i Time (1:00 p.m. Eastern Time). The live
call, including a slide presentation, will be accessible on the
investor relations link of Bank of Hawai‘i Corporation's website,
www.boh.com. The webcast can be accessed via the link:
https://register.vevent.com/register/BIa96006b6de704a3690a1e0eeb5330a09.
A replay of the webcast will be available for one year beginning
approximately 11:00 a.m. Hawai‘i Time on Monday, January 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, 2022 and
its Form 10-Q for the fiscal quarter ended March 31, 2023, June 30,
2023 and September 30, 2023, which were filed with the U.S.
Securities and Exchange Commission. These forward-looking
statements are not guarantees of future performance and speak only
as of the date made, and, except as required by law, the Company
undertakes no obligation to update or revise any forward-looking
statements to reflect subsequent events, new information or future
circumstances.
Bank of Hawai‘i Corporation is an independent regional financial
services company serving businesses, consumers, and governments in
Hawai‘i and the West Pacific. The Company's principal subsidiary,
Bank of Hawai‘i, was founded in 1897. For more information about
Bank of Hawai‘i Corporation, see the Company’s website,
www.boh.com. Bank of Hawai‘i Corporation is a trade name of Bank of
Hawaii Corporation.
Bank of Hawai‘i Corporation and Subsidiaries Financial
Highlights
Table 1
Three Months Ended Year Ended December 31,
September 30, December 31, December 31,
(dollars in thousands, except per share amounts)
2023
2023
2022
2023
2022
For the Period: Operating
Results Net Interest Income
$
115,785
$
120,937
$
140,738
$
497,025
$
540,558
Provision for Credit Losses
2,500
2,000
200
9,000
(7,800
)
Total Noninterest Income
42,283
50,334
41,172
176,609
157,541
Total Noninterest Expense
115,962
105,601
102,703
437,518
415,265
Pre-Provision Net Revenue
42,106
65,670
79,207
236,116
282,834
Net Income
30,396
47,903
61,307
171,202
225,804
Net Income Available to Common Shareholders 1
28,427
45,934
59,338
163,326
217,928
Basic Earnings Per Common Share
0.72
1.17
1.51
4.16
5.50
Diluted Earnings Per Common Share
0.72
1.17
1.50
4.14
5.48
Dividends Declared Per Common Share
0.70
0.70
0.70
2.80
2.80
Performance Ratios Return on Average Assets
0.51
%
0.78
%
1.05
%
0.71
%
0.98
%
Return on Average Shareholders' Equity
8.86
13.92
18.91
12.63
16.10
Return on Average Common Equity
9.55
15.38
21.28
13.89
17.83
Efficiency Ratio 2
73.36
61.66
56.46
64.95
59.49
Net Interest Margin 3
2.13
2.13
2.60
2.24
2.50
Dividend Payout Ratio 4
97.22
59.83
46.36
67.31
50.91
Average Shareholders' Equity to Average Assets
5.80
5.60
5.56
5.66
6.10
Average Balances Average Loans and Leases
$
13,906,114
$
13,903,214
$
13,452,791
$
13,851,551
$
12,896,510
Average Assets
23,449,215
24,387,421
23,147,398
23,954,186
23,006,671
Average Deposits
20,704,070
20,492,082
20,341,327
20,412,378
20,550,739
Average Shareholders' Equity
1,360,641
1,365,143
1,286,291
1,355,536
1,402,533
Per Share of Common Stock Book Value
$
31.05
$
29.78
$
28.54
$
31.05
$
28.54
Tangible Book Value
30.25
28.99
27.75
30.25
27.75
Market Value Closing
72.46
49.69
77.56
72.46
77.56
High
75.19
58.63
82.87
81.73
92.38
Low
45.56
39.02
70.15
30.83
70.15
December 31,
September 30,
December 31,
2023
2023
2022
As of Period End: Balance
Sheet Totals Loans and Leases
$
13,965,026
$
13,919,491
$
13,646,420
Total Assets
23,733,296
23,549,785
23,606,877
Total Deposits
21,055,045
20,802,309
20,615,696
Other Debt
560,190
560,217
410,294
Total Shareholders' Equity
1,414,242
1,363,840
1,316,995
Asset Quality Non-Performing Assets
$
11,747
$
11,519
$
12,647
Allowance for Credit Losses - Loans and Leases
146,403
145,263
144,439
Allowance to Loans and Leases Outstanding 5
1.05
%
1.04
%
1.06
%
Capital Ratios 6 Common Equity Tier 1 Capital Ratio
11.33
%
11.29
%
10.92
%
Tier 1 Capital Ratio
12.56
12.53
12.15
Total Capital Ratio
13.60
13.56
13.17
Tier 1 Leverage Ratio
7.51
7.22
7.37
Total Shareholders' Equity to Total Assets
5.96
5.79
5.58
Tangible Common Equity to Tangible Assets 7
5.07
4.90
4.69
Tangible Common Equity to Risk-Weighted Assets 7
8.45
8.10
7.76
Non-Financial Data Full-Time Equivalent Employees
1,899
1,919
2,076
Branches
51
51
51
ATMs
318
320
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 December 31, 2023 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
December 31, September 30, December 31,
(dollars in thousands)
2023
2023
2022
Total Shareholders' Equity
$
1,414,242
$
1,363,840
$
1,316,995
Less: Preferred Stock
180,000
180,000
180,000
Goodwill
31,517
31,517
31,517
Tangible Common Equity
$
1,202,725
$
1,152,323
$
1,105,478
Total Assets
$
23,733,296
$
23,549,785
$
23,606,877
Less: Goodwill
31,517
31,517
31,517
Tangible Assets
$
23,701,779
$
23,518,268
$
23,575,360
Risk-Weighted Assets, determined in accordance with
prescribed regulatory requirements 1
$
14,226,780
$
14,222,825
$
14,238,798
Total Shareholders' Equity to Total Assets
5.96
%
5.79
%
5.58
%
Tangible Common Equity to Tangible Assets (Non-GAAP)
5.07
%
4.90
%
4.69
%
Tier 1 Capital Ratio 1
12.56
%
12.53
%
12.15
%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1
8.45
%
8.10
%
7.76
%
1 Regulatory capital ratios as of December 31, 2023 are
preliminary.
Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Income Table 3 Three
Months Ended Year Ended December 31, September
30, December 31, December 31, (dollars in
thousands, except per share amounts)
2023
2023
2022
2023
2022
Interest Income Interest and Fees on Loans and Leases
$
158,324
$
151,245
$
128,683
$
590,611
$
439,798
Income on Investment Securities Available-for-Sale
22,782
23,552
18,476
93,528
70,555
Held-to-Maturity
22,589
22,838
23,708
92,750
81,490
Deposits
23
18
13
86
32
Funds Sold
5,705
12,828
1,093
28,294
4,274
Other
924
1,464
340
5,106
1,217
Total Interest Income
210,347
211,945
172,313
810,375
597,366
Interest Expense Deposits
87,121
72,153
23,494
250,847
39,678
Securities Sold Under Agreements to Repurchase
1,459
4,034
4,289
16,306
12,600
Funds Purchased
-
-
318
888
417
Short-Term Borrowings
-
-
1,978
5,713
2,070
Other Debt
5,982
14,821
1,496
39,596
2,043
Total Interest Expense
94,562
91,008
31,575
313,350
56,808
Net Interest Income
115,785
120,937
140,738
497,025
540,558
Provision for Credit Losses
2,500
2,000
200
9,000
(7,800
)
Net Interest Income After Provision for Credit Losses
113,285
118,937
140,538
488,025
548,358
Noninterest Income Trust and Asset Management
11,144
10,548
10,652
43,597
43,803
Mortgage Banking
1,016
1,059
991
4,255
5,980
Service Charges on Deposit Accounts
7,949
7,843
7,513
31,116
29,620
Fees, Exchange, and Other Service Charges
13,774
13,824
13,906
55,556
54,914
Investment Securities Losses, Net
(1,619
)
(6,734
)
(1,124
)
(11,455
)
(6,111
)
Annuity and Insurance
1,271
1,156
1,087
4,736
3,782
Bank-Owned Life Insurance
3,176
2,749
2,475
11,643
9,968
Other
5,572
19,889
5,672
37,161
15,585
Total Noninterest Income
42,283
50,334
41,172
176,609
157,541
Noninterest Expense Salaries and Benefits
53,991
58,825
57,639
234,079
235,270
Net Occupancy
9,734
10,327
9,499
39,924
39,441
Net Equipment
9,826
9,477
9,942
40,251
38,374
Data Processing
4,948
4,706
4,579
18,836
18,362
Professional Fees
5,079
3,846
3,958
17,459
14,557
FDIC Insurance
18,545
3,361
1,774
28,313
6,546
Other
13,839
15,059
15,312
58,656
62,715
Total Noninterest Expense
115,962
105,601
102,703
437,518
415,265
Income Before Provision for Income Taxes
39,606
63,670
79,007
227,116
290,634
Provision for Income Taxes
9,210
15,767
17,700
55,914
64,830
Net Income
$
30,396
$
47,903
$
61,307
$
171,202
$
225,804
Preferred Stock Dividends
1,969
1,969
1,969
7,877
7,877
Net Income Available to Common Shareholders
$
28,427
$
45,934
$
59,338
$
163,325
$
217,927
Basic Earnings Per Common Share
$
0.72
$
1.17
$
1.51
$
4.16
$
5.50
Diluted Earnings Per Common Share
$
0.72
$
1.17
$
1.50
$
4.14
$
5.48
Dividends Declared Per Common Share
$
0.70
$
0.70
$
0.70
$
2.80
$
2.80
Basic Weighted Average Common Shares
39,303,525
39,274,626
39,395,338
39,274,291
39,601,089
Diluted Weighted Average Common Shares
39,539,191
39,420,531
39,618,896
39,428,912
39,788,002
Bank of Hawai‘i Corporation and Subsidiaries Consolidated
Statements of Comprehensive Income (Loss) Table 4
Three Months Ended Year Ended December 31,
September 30, December 31, December 31,
(dollars in thousands)
2023
2023
2022
2023
2022
Net Income
$
30,396
$
47,903
$
61,307
$
171,202
$
225,804
Other Comprehensive Income (Loss), Net of Tax: Net Unrealized Gains
(Losses) on Investment Securities
43,357
(18,264
)
5,677
36,152
(376,694
)
Defined Benefit Plans
1,566
84
7,359
1,818
8,418
Other Comprehensive Income (Loss)
44,923
(18,180
)
13,036
37,970
(368,276
)
Comprehensive Income (Loss)
$
75,319
$
29,723
$
74,343
$
209,172
$
(142,472
)
Bank of Hawai‘i Corporation and Subsidiaries Consolidated
Statements of Condition Table 5 December 31,
September 30, December 31, (dollars in thousands)
2023
2023
2022
Assets Interest-Bearing Deposits in Other Banks
$
2,761
$
4,676
$
3,724
Funds Sold
690,112
386,086
81,364
Investment Securities Available-for-Sale
2,408,933
2,387,324
2,844,823
Held-to-Maturity (Fair Value of $4,253,637; $4,104,469; and
$4,615,393)
4,997,335
5,088,013
5,414,139
Loans Held for Sale
3,124
1,450
1,035
Loans and Leases
13,965,026
13,919,491
13,646,420
Allowance for Credit Losses
(146,403
)
(145,263
)
(144,439
)
Net Loans and Leases
13,818,623
13,774,228
13,501,981
Total Earning Assets
21,920,888
21,641,777
21,847,066
Cash and Due from Banks
308,071
261,464
316,679
Premises and Equipment, Net
194,855
196,094
206,777
Operating Lease Right-of-Use Assets
86,110
86,896
92,307
Accrued Interest Receivable
66,525
65,541
61,002
Foreclosed Real Estate
2,098
1,040
1,040
Mortgage Servicing Rights
20,880
21,273
22,619
Goodwill
31,517
31,517
31,517
Bank-Owned Life Insurance
462,894
458,260
453,882
Other Assets
639,458
785,923
573,988
Total Assets
$
23,733,296
$
23,549,785
$
23,606,877
Liabilities Deposits Noninterest-Bearing Demand
$
6,058,554
$
5,687,442
$
6,714,982
Interest-Bearing Demand
3,749,717
3,925,469
4,232,567
Savings
8,189,472
8,530,384
7,962,410
Time
3,057,302
2,659,014
1,705,737
Total Deposits
21,055,045
20,802,309
20,615,696
Securities Sold Under Agreements to Repurchase
150,490
150,490
725,490
Other Debt
560,190
560,217
410,294
Operating Lease Liabilities
94,693
95,453
100,526
Retirement Benefits Payable
23,673
26,074
26,991
Accrued Interest Payable
41,023
33,434
9,698
Taxes Payable
7,636
6,965
7,104
Other Liabilities
386,304
511,003
394,083
Total Liabilities
22,319,054
22,185,945
22,289,882
Shareholders' Equity Preferred Stock ($.01 par value;
authorized 180,000 shares; issued / outstanding: December 31, 2023;
September 30, 2023; and December 31, 2022 - 180,000)
180,000
180,000
180,000
Common Stock ($.01 par value; authorized 500,000,000 shares; issued
/ outstanding: December 31, 2023 - 58,755,465 / 39,753,138;
September 30, 2023 - 58,767,820 / 39,748,700; and December 31, 2022
- 58,733,625 / 39,835,750)
583
583
582
Capital Surplus
636,422
632,425
620,578
Accumulated Other Comprehensive Loss
(396,688
)
(441,611
)
(434,658
)
Retained Earnings
2,107,569
2,108,702
2,055,912
Treasury Stock, at Cost (Shares: December 31, 2023 - 19,002,327;
September 30, 2023 - 19,019,120; and December 31, 2022 -
18,897,875)
(1,113,644
)
(1,116,259
)
(1,105,419
)
Total Shareholders' Equity
1,414,242
1,363,840
1,316,995
Total Liabilities and Shareholders' Equity
$
23,733,296
$
23,549,785
$
23,606,877
Bank of Hawai‘i Corporation and Subsidiaries Consolidated
Statements of Shareholders' Equity Table 6
Accumulated Other Preferred Common
Comprehensive Shares Preferred Shares
Common Capital Income Retained
Treasury (dollars in thousands)
Outstanding
Stock Outstanding Stock Surplus
(Loss) Earnings Stock Total Balance
as of December 31, 2021
180,000
$
180,000
40,253,193
$
581
$
602,508
$
(66,382
)
$
1,950,375
$
(1,055,471
)
$
1,611,611
Net Income
-
-
-
-
-
-
225,804
-
225,804
Other Comprehensive Loss
-
-
-
-
-
(368,276
)
-
-
(368,276
)
Share-Based Compensation
-
-
-
-
16,066
-
-
-
16,066
Common Stock Issued under Purchase and Equity Compensation Plans
and Related Tax Benefits
-
-
272,007
1
2,004
-
167
5,115
7,287
Common Stock Repurchased
-
-
(689,450
)
-
-
-
-
(55,063
)
(55,063
)
Cash Dividends Declared Common Stock ($2.80 per share)
-
-
-
-
-
-
(112,557
)
-
(112,557
)
Cash Dividends Declared Preferred Stock
-
-
-
-
-
-
(7,877
)
-
(7,877
)
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
-
$
-
-
$
-
$
-
$
-
$
171,202
$
-
$
171,202
Other Comprehensive Income
-
-
-
-
-
37,970
-
-
37,970
Share-Based Compensation
-
-
-
-
15,656
-
-
-
15,656
Common Stock Issued under Purchase and Equity Compensation Plans
and Related Tax Benefits
-
-
130,286
1
188
-
127
6,065
6,381
Common Stock Repurchased
-
-
(212,898
)
-
-
-
-
(14,290
)
(14,290
)
Cash Dividends Declared Common Stock ($2.80 per share)
-
-
-
-
-
-
(111,795
)
-
(111,795
)
Cash Dividends Declared Preferred Stock
-
-
-
-
-
-
(7,877
)
-
(7,877
)
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
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 December 31, 2023 September 30,
2023 December 31, 2022 Average Income /
Yield / Average Income / Yield /
Average Income / Yield / (dollars in millions)
Balance Expense 2 Rate Balance
Expense 2 Rate Balance Expense 2
Rate Earning Assets Interest-Bearing Deposits in
Other Banks
$
4.3
$
-
2.08
%
$
2.9
$
-
2.40
%
$
2.2
$
-
2.32
%
Funds Sold
415.0
5.7
5.38
944.8
12.8
5.31
118.1
1.2
3.62
Investment Securities Available-for-Sale Taxable
2,362.4
22.8
3.84
2,605.4
23.5
3.60
2,593.5
18.4
2.83
Non-Taxable
1.8
-
1.90
3.5
-
3.21
7.5
0.1
4.14
Held-to-Maturity Taxable
5,013.6
22.4
1.79
5,118.6
22.7
1.77
5,401.9
23.5
1.74
Non-Taxable
34.9
0.2
2.10
35.0
0.2
2.10
35.4
0.2
2.10
Total Investment Securities
7,412.7
45.4
2.45
7,762.5
46.4
2.39
8,038.3
42.2
2.10
Loans Held for Sale
3.8
0.1
6.89
3.8
0.1
6.28
3.3
-
5.65
Loans and Leases 3 Commercial and Industrial
1,603.5
21.3
5.27
1,515.0
18.9
4.96
1,379.9
14.8
4.25
Paycheck Protection Program
11.9
-
1.36
13.1
-
1.32
21.3
0.1
2.30
Commercial Mortgage
3,760.1
51.5
5.42
3,792.6
51.1
5.35
3,627.4
40.6
4.44
Construction
279.5
4.8
6.84
241.9
3.7
6.09
246.9
3.3
5.29
Commercial Lease Financing
60.1
0.3
1.95
62.6
0.3
1.84
72.0
0.3
1.49
Residential Mortgage
4,676.0
45.1
3.86
4,715.3
42.8
3.62
4,617.9
38.9
3.37
Home Equity
2,276.2
20.9
3.65
2,283.5
20.1
3.49
2,207.7
17.9
3.23
Automobile
845.7
8.6
4.02
868.0
8.2
3.75
851.1
7.0
3.29
Other 4
393.1
6.3
6.40
411.2
6.5
6.24
428.6
6.1
5.64
Total Loans and Leases
13,906.1
158.8
4.54
13,903.2
151.6
4.34
13,452.8
129.0
3.81
Other
60.0
1.0
6.16
91.6
1.5
6.40
50.1
0.4
2.72
Total Earning Assets
21,801.9
211.0
3.85
22,708.8
212.4
3.72
21,664.8
172.8
3.17
Cash and Due from Banks
243.8
289.8
244.3
Other Assets
1,403.5
1,388.8
1,238.3
Total Assets
$
23,449.2
$
24,387.4
$
23,147.4
Interest-Bearing Liabilities Interest-Bearing
Deposits Demand
$
3,737.3
7.7
0.82
$
3,929.7
6.6
0.67
$
4,131.4
3.5
0.33
Savings
8,441.0
51.1
2.40
7,952.6
39.1
1.95
7,869.9
13.4
0.68
Time
2,830.0
28.3
3.97
2,767.8
26.5
3.79
1,467.7
6.6
1.78
Total Interest-Bearing Deposits
15,008.3
87.1
2.30
14,650.1
72.2
1.95
13,469.0
23.5
0.69
Funds Purchased
-
-
-
-
-
-
36.6
0.3
3.40
Short-Term Borrowings
-
-
-
-
-
-
198.3
2.0
3.90
Securities Sold Under Agreements to Repurchase
150.5
1.5
3.79
528.5
4.0
2.99
594.5
4.3
2.82
Other Debt
560.2
6.0
4.24
1,365.7
14.8
4.31
137.5
1.5
4.32
Total Interest-Bearing Liabilities
15,719.0
94.6
2.39
16,544.3
91.0
2.18
14,435.9
31.6
0.87
Net Interest Income
$
116.4
$
121.4
$
141.2
Interest Rate Spread
1.46
%
1.54
%
2.30
%
Net Interest Margin
2.13
%
2.13
%
2.60
%
Noninterest-Bearing Demand Deposits
5,695.8
5,842.0
6,872.3
Other Liabilities
673.8
636.0
552.9
Shareholders' Equity
1,360.6
1,365.1
1,286.3
Total Liabilities and Shareholders' Equity
$
23,449.2
$
24,387.4
$
23,147.4
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 $605,000, $437,000, and
$433,000 for the three months ended December 31, 2023, September
30, 2023, and December 31, 2022, respectively. 3 Non-performing
loans and leases are included in the respective average loan and
lease balances. Income, if any, on such loans and leases is
recognized on a cash basis. 4 Comprised of other consumer revolving
credit, installment, and consumer lease financing.
Bank of
Hawai‘i Corporation and Subsidiaries Average Balances and
Interest Rates - Taxable-Equivalent Basis 1 Table 7b
Year Ended Year Ended December 31, 2023
December 31, 2022 Average Income / Yield
/ Average Income / Yield / (dollars in
millions)
Balance Expense 2 Rate
Balance Expense 2 Rate Earning Assets
Interest-Bearing Deposits in Other Banks
$
3.5
$
0.1
2.44
%
$
3.0
$
-
1.05
%
Funds Sold
540.4
28.3
5.24
260.5
4.3
1.64
Investment Securities Available-for-Sale Taxable
2,631.0
93.4
3.55
3,644.2
70.5
1.93
Non-Taxable
6.1
0.2
4.06
4.0
0.1
2.92
Held-to-Maturity Taxable
5,173.9
92.2
1.78
4,750.0
80.9
1.70
Non-Taxable
35.1
0.7
2.10
35.6
0.7
2.10
Total Investment Securities
7,846.1
186.5
2.38
8,433.8
152.2
1.80
Loans Held for Sale
3.0
0.2
6.16
6.9
0.3
3.70
Loans and Leases 3 Commercial and Industrial
1,497.1
74.0
4.94
1,349.3
46.2
3.42
Paycheck Protection Program
14.1
0.2
1.63
44.0
2.7
6.07
Commercial Mortgage
3,776.2
197.0
5.22
3,420.1
121.9
3.56
Construction
262.1
16.0
6.09
232.6
10.6
4.56
Commercial Lease Financing
63.7
0.8
1.30
88.5
1.3
1.49
Residential Mortgage
4,690.5
168.9
3.60
4,484.2
147.4
3.29
Home Equity
2,268.0
78.2
3.45
2,072.2
62.1
3.00
Automobile
866.1
31.8
3.67
786.1
25.4
3.23
Other 4
413.8
25.3
6.12
419.5
23.0
5.49
Total Loans and Leases
13,851.6
592.2
4.28
12,896.5
440.6
3.42
Other
78.3
5.1
6.51
40.5
1.2
3.01
Total Earning Assets
22,322.9
812.4
3.64
21,641.2
598.6
2.77
Cash and Due from Banks
292.1
237.4
Other Assets
1,339.2
1,128.1
Total Assets
$
23,954.2
$
23,006.7
Interest-Bearing Liabilities Interest-Bearing
Deposits Demand
$
3,978.7
27.0
0.68
$
4,377.1
6.1
0.14
Savings
8,018.4
137.4
1.71
7,767.7
22.9
0.30
Time
2,424.8
86.4
3.56
1,135.5
10.7
0.94
Total Interest-Bearing Deposits
14,421.9
250.8
1.74
13,280.3
39.7
0.30
Funds Purchased
18.5
0.9
4.79
18.5
0.4
2.26
Short-Term Borrowings
114.0
5.7
5.01
58.6
2.1
3.53
Securities Sold Under Agreements to Repurchase
530.9
16.3
3.07
479.8
12.6
2.63
Other Debt
921.8
39.7
4.30
42.4
2.0
4.82
Total Interest-Bearing Liabilities
16,007.1
313.4
1.96
13,879.6
56.8
0.41
Net Interest Income
$
499.0
$
541.8
Interest Rate Spread
1.68
%
2.36
%
Net Interest Margin
2.24
%
2.50
%
Noninterest-Bearing Demand Deposits
5,990.5
7,270.4
Other Liabilities
601.1
454.2
Shareholders' Equity
1,355.5
1,402.5
Total Liabilities and Shareholders' Equity
$
23,954.2
$
23,006.7
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 $2,008,000 and $1,251,000 for
the year ended December 31, 2023 and December 31, 2022,
respectively. 3 Non-performing loans and leases are included in the
respective average loan and lease balances. Income, if any, on such
loans and leases is recognized on a cash basis. 4 Comprised of
other consumer revolving credit, installment, and consumer lease
financing.
Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent
Basis Table 8a Three Months Ended December 31,
2023 Compared to September 30, 2023 (dollars in
millions)
Volume 1 Rate 1 Total Change in
Interest Income: Funds Sold
$
(7.3
)
$
0.2
$
(7.1
)
Investment Securities Available-for-Sale Taxable
(2.2
)
1.5
(0.7
)
Held-to-Maturity Taxable
(0.5
)
0.2
(0.3
)
Total Investment Securities
(2.7
)
1.7
(1.0
)
Loans and Leases Commercial and Industrial
1.2
1.2
2.4
Commercial Mortgage
(0.4
)
0.8
0.4
Construction
0.6
0.5
1.1
Residential Mortgage
(0.4
)
2.7
2.3
Home Equity
(0.1
)
0.9
0.8
Automobile
(0.2
)
0.6
0.4
Other 2
(0.4
)
0.2
(0.2
)
Total Loans and Leases
0.3
6.9
7.2
Other
(0.4
)
(0.1
)
(0.5
)
Total Change in Interest Income
(10.1
)
8.7
(1.4
)
Change in Interest Expense: Interest-Bearing Deposits Demand
(0.3
)
1.4
1.1
Savings
2.5
9.5
12.0
Time
0.6
1.2
1.8
Total Interest-Bearing Deposits
2.8
12.1
14.9
Securities Sold Under Agreements to Repurchase
(3.5
)
1.0
(2.5
)
Other Debt
(8.6
)
(0.2
)
(8.8
)
Total Change in Interest Expense
(9.3
)
12.9
3.6
Change in Net Interest Income
$
(0.8
)
$
(4.2
)
$
(5.0
)
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 December 31, 2023
Compared to December 31, 2022 (dollars in millions)
Volume 1 Rate 1 Total Change in Interest
Income: Funds Sold
$
3.8
$
0.7
$
4.5
Investment Securities Available-for-Sale Taxable
(1.8
)
6.2
4.4
Non-Taxable
-
(0.1
)
(0.1
)
Held-to-Maturity Taxable
(1.7
)
0.6
(1.1
)
Total Investment Securities
(3.5
)
6.7
3.2
Loans Held for Sale
-
0.1
0.1
Loans and Leases Commercial and Industrial
2.6
3.9
6.5
Paycheck Protection Program
-
(0.1
)
(0.1
)
Commercial Mortgage
1.6
9.3
10.9
Construction
0.4
1.1
1.5
Residential Mortgage
0.5
5.7
6.2
Home Equity
0.6
2.4
3.0
Automobile
-
1.6
1.6
Other 2
(0.6
)
0.8
0.2
Total Loans and Leases
5.1
24.7
29.8
Other
0.1
0.5
0.6
Total Change in Interest Income
5.5
32.7
38.2
Change in Interest Expense: Interest-Bearing Deposits Demand
(0.4
)
4.6
4.2
Savings
1.0
36.7
37.7
Time
9.4
12.3
21.7
Total Interest-Bearing Deposits
10.0
53.6
63.6
Funds Purchased
(0.3
)
-
(0.3
)
Short-Term Borrowings
(2.0
)
-
(2.0
)
Securities Sold Under Agreements to Repurchase
(3.9
)
1.1
(2.8
)
Other Debt
4.5
-
4.5
Total Change in Interest Expense
8.3
54.7
63.0
Change in Net Interest Income
$
(2.8
)
$
(22.0
)
$
(24.8
)
1 The change in interest income and expense not solely due to
changes in volume or rate has been allocated on a pro-rata basis to
the volume and rate columns. 2 Comprised of other consumer
revolving credit, installment, and consumer lease financing.
Bank of Hawai‘i Corporation and Subsidiaries Analysis of
Change in Net Interest Income - Taxable-Equivalent Basis
Table 8c Year Ended December 31, 2023 Compared to
December 31, 2022 (dollars in millions)
Volume 1 Rate
1 Total Change in Interest Income: Interest-Bearing
Deposits in Other Banks
$
0.1
$
-
$
0.1
Funds Sold
7.9
16.1
24.0
Investment Securities Available-for-Sale Taxable
(23.7
)
46.6
22.9
Non-Taxable
0.1
-
0.1
Held-to-Maturity Taxable
7.4
3.9
11.3
Total Investment Securities
(16.2
)
50.5
34.3
Loans Held for Sale
(0.2
)
0.1
(0.1
)
Loans and Leases Commercial and Industrial
5.5
22.3
27.8
Paycheck Protection Program
(1.2
)
(1.3
)
(2.5
)
Commercial Mortgage
13.8
61.3
75.1
Construction
1.5
3.9
5.4
Commercial Lease Financing
(0.4
)
(0.1
)
(0.5
)
Residential Mortgage
7.0
14.5
21.5
Home Equity
6.2
9.9
16.1
Automobile
2.7
3.7
6.4
Other 2
(0.3
)
2.6
2.3
Total Loans and Leases
34.8
116.8
151.6
Other
1.7
2.2
3.9
Total Change in Interest Income
28.1
185.7
213.8
Change in Interest Expense: Interest-Bearing Deposits Demand
(0.6
)
21.5
20.9
Savings
0.8
113.7
114.5
Time
21.8
53.9
75.7
Total Interest-Bearing Deposits
22.0
189.1
211.1
Funds Purchased
-
0.5
0.5
Short-Term Borrowings
2.5
1.1
3.6
Securities Sold Under Agreements to Repurchase
1.4
2.3
3.7
Other Debt
37.9
(0.2
)
37.7
Total Change in Interest Expense
63.8
192.8
256.6
Change in Net Interest Income
$
(35.7
)
$
(7.1
)
$
(42.8
)
1 The change in interest income and expense not solely due to
changes in volume or rate has been allocated on a pro-rata basis to
the volume and rate columns. 2 Comprised of other consumer
revolving credit, installment, and consumer lease financing.
Bank of Hawai‘i Corporation and Subsidiaries Salaries and
Benefits Table 9 Three Months Ended Year
Ended
December 31,
September 30,
December 31,
December 31,
(dollars in thousands)
2023
2023
2022
2023
2022
Salaries
$
38,492
$
39,426
$
37,395
$
154,497
$
146,840
Incentive Compensation
3,402
2,956
5,356
13,339
23,425
Share-Based Compensation
3,443
4,072
3,901
14,770
15,220
Commission Expense
700
676
830
2,798
4,708
Retirement and Other Benefits
2,521
3,809
4,065
15,707
17,242
Payroll Taxes
2,598
2,921
2,591
14,677
13,395
Medical, Dental, and Life Insurance
2,500
2,835
3,528
12,767
11,958
Separation Expense
335
2,130
(27
)
5,524
2,482
Total Salaries and Benefits
$
53,991
$
58,825
$
57,639
$
234,079
$
235,270
Bank of Hawai‘i Corporation and Subsidiaries Loan and
Lease Portfolio Balances Table 10
December 31,
September 30,
June 30,
March 31,
December 31,
(dollars in thousands)
2023
2023
2023
2023
2022
Commercial Commercial and Industrial
$
1,652,699
$
1,569,572
$
1,502,676
$
1,425,916
$
1,389,066
Paycheck Protection Program
11,369
12,529
13,789
15,175
19,579
Commercial Mortgage
3,749,016
3,784,339
3,796,769
3,826,283
3,725,542
Construction
304,463
251,507
236,428
232,903
260,825
Lease Financing
59,939
61,522
62,779
65,611
69,491
Total Commercial
5,777,486
5,679,469
5,612,441
5,565,888
5,464,503
Consumer Residential Mortgage
4,684,171
4,699,140
4,721,976
4,691,298
4,653,072
Home Equity
2,264,827
2,285,974
2,278,105
2,260,001
2,225,950
Automobile
837,830
856,113
878,767
877,979
870,396
Other 1
400,712
398,795
423,600
429,356
432,499
Total Consumer
8,187,540
8,240,022
8,302,448
8,258,634
8,181,917
Total Loans and Leases
$
13,965,026
$
13,919,491
$
13,914,889
$
13,824,522
$
13,646,420
1 Comprised of other revolving credit, installment, and lease
financing.
Deposits
December 31,
September 30,
June 30,
March 31,
December 31,
(dollars in thousands)
2023
2023
2023
2023
2022
Consumer
$
10,319,809
$
10,036,261
$
10,018,931
$
10,158,833
$
10,304,335
Commercial
8,601,224
8,564,536
8,019,971
8,594,441
8,569,670
Public and Other
2,134,012
2,201,512
2,469,713
1,738,026
1,741,691
Total Deposits
$
21,055,045
$
20,802,309
$
20,508,615
$
20,491,300
$
20,615,696
Average Deposits
Three Months Ended
December 31,
September 30,
June 30,
March 31,
December 31,
(dollars in thousands)
2023
2023
2023
2023
2022
Consumer
$
10,092,727
$
9,963,690
$
9,977,239
$
10,178,988
$
10,295,563
Commercial
8,581,426
8,288,891
8,138,358
8,611,960
8,588,198
Public and Other
2,029,917
2,239,501
1,903,004
1,639,934
1,457,566
Total Deposits
$
20,704,070
$
20,492,082
$
20,018,601
$
20,430,882
$
20,341,327
Bank of Hawai‘i Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90
Days or More Table 11
December 31,
September 30,
June 30,
March 31,
December 31,
(dollars in thousands)
2023
2023
2023
2023
2022
Non-Performing Assets Non-Accrual Loans and Leases
Commercial Commercial and Industrial
$
39
$
43
$
17
$
31
$
37
Commercial Mortgage
2,884
2,996
3,107
3,216
3,309
Total Commercial
2,923
3,039
3,124
3,247
3,346
Consumer Residential Mortgage
2,935
3,706
3,504
4,199
4,239
Home Equity
3,791
3,734
3,809
3,638
4,022
Total Consumer
6,726
7,440
7,313
7,837
8,261
Total Non-Accrual Loans and Leases
9,649
10,479
10,437
11,084
11,607
Foreclosed Real Estate
2,098
1,040
1,040
1,040
1,040
Total Non-Performing Assets
$
11,747
$
11,519
$
11,477
$
12,124
$
12,647
Accruing Loans and Leases Past Due 90 Days or More
Consumer Residential Mortgage
$
3,814
$
3,519
$
3,560
$
4,566
$
2,429
Home Equity
1,734
2,172
2,022
1,723
1,673
Automobile
399
393
577
598
589
Other 1
648
643
633
632
683
Total Consumer
6,595
6,727
6,792
7,519
5,374
Total Accruing Loans and Leases Past Due 90 Days or More
$
6,595
$
6,727
$
6,792
$
7,519
$
5,374
Total Loans and Leases
$
13,965,026
$
13,919,491
$
13,914,889
$
13,824,522
$
13,646,420
Ratio of Non-Accrual Loans and Leases to Total Loans and
Leases
0.07
%
0.08
%
0.08
%
0.08
%
0.09
%
Ratio of Non-Performing Assets to Total Loans and Leases and
Foreclosed Real Estate
0.08
%
0.08
%
0.08
%
0.09
%
0.09
%
Ratio of Non-Performing Assets to Total Assets
0.05
%
0.05
%
0.04
%
0.05
%
0.05
%
Ratio of Commercial Non-Performing Assets to Total
Commercial Loans and Leases and Commercial Foreclosed Real Estate
0.05
%
0.05
%
0.06
%
0.06
%
0.06
%
Ratio of Consumer Non-Performing Assets to Total Consumer
Loans and Leases and Consumer Foreclosed Real Estate
0.11
%
0.10
%
0.10
%
0.11
%
0.11
%
Ratio of Non-Performing Assets and Accruing Loans and Leases
Past Due 90 Days or More to Total Loans and Leases and Foreclosed
Real Estate
0.13
%
0.13
%
0.13
%
0.14
%
0.13
%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter
$
11,519
$
11,477
$
12,124
$
12,647
$
13,868
Additions
2,683
1,318
1,116
552
704
Reductions Payments
(2,018
)
(1,017
)
(226
)
(778
)
(1,605
)
Return to Accrual Status
(437
)
(259
)
(1,527
)
(297
)
(301
)
Charge-offs / Write-downs
-
-
(10
)
-
(19
)
Total Reductions
(2,455
)
(1,276
)
(1,763
)
(1,075
)
(1,925
)
Balance at End of Quarter
$
11,747
$
11,519
$
11,477
$
12,124
$
12,647
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 Year Ended December 31,
September 30, December 31, December 31,
(dollars in thousands)
2023
2023
2022
2023
2022
Balance at Beginning of Period
$
151,653
$
151,702
$
152,927
$
151,247
$
164,297
Loans and Leases Charged-Off Commercial Commercial and
Industrial
(229
)
(294
)
(196
)
(987
)
(925
)
Consumer Residential Mortgage
-
-
-
(6
)
(80
)
Home Equity
(14
)
(13
)
(10
)
(82
)
(100
)
Automobile
(938
)
(1,353
)
(1,171
)
(5,247
)
(4,652
)
Other 1
(2,349
)
(1,957
)
(1,846
)
(8,645
)
(7,585
)
Total Loans and Leases Charged-Off
(3,530
)
(3,617
)
(3,223
)
(14,967
)
(13,342
)
Recoveries on Loans and Leases Previously Charged-Off Commercial
Commercial and Industrial
125
72
87
350
552
Consumer Residential Mortgage
301
69
63
489
1,193
Home Equity
180
131
202
1,073
1,500
Automobile
612
721
412
2,782
2,276
Other 1
588
575
604
2,455
2,702
Total Recoveries on Loans and Leases Previously Charged-Off
1,806
1,568
1,368
7,149
8,223
Net Charged-Off - Loans and Leases
(1,724
)
(2,049
)
(1,855
)
(7,818
)
(5,119
)
Net Charged-Off - Accrued Interest Receivable
-
-
(25
)
-
(131
)
Provision for Credit Losses: Loans and Leases
2,864
1,945
(142
)
9,782
(8,263
)
Accrued Interest Receivable
-
-
25
-
(283
)
Unfunded Commitments
(364
)
55
317
(782
)
746
Total Provision for Credit Losses
2,500
2,000
200
9,000
(7,800
)
Balance at End of Period
$
152,429
$
151,653
$
151,247
$
152,429
$
151,247
Components Allowance for Credit Losses - Loans and
Leases
$
146,403
$
145,263
$
144,439
$
146,403
$
144,439
Reserve for Unfunded Commitments
6,026
6,390
6,808
6,026
6,808
Total Reserve for Credit Losses
$
152,429
$
151,653
$
151,247
$
152,429
$
151,247
Average Loans and Leases Outstanding
$
13,906,114
$
13,903,214
$
13,452,791
$
13,851,551
$
12,896,510
Ratio of Net Loans and Leases Charged-Off to Average Loans
and Leases Outstanding (annualized)
0.05
%
0.06
%
0.05
%
0.06
%
0.04
%
Ratio of Allowance for Credit Losses to Loans and Leases
Outstanding 2
1.05
%
1.04
%
1.06
%
1.05
%
1.06
%
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 December 31, 2023 Net Interest Income
(Loss)
$
101,868
$
51,663
$
(37,746
)
$
115,785
Provision for Credit Losses
1,738
(15
)
777
2,500
Net Interest Income (Loss) After Provision for Credit Losses
100,130
51,678
(38,523
)
113,285
Noninterest Income
32,247
7,944
2,092
42,283
Noninterest Expense
(92,793
)
(18,958
)
(4,211
)
(115,962
)
Income (Loss) Before Income Taxes
39,584
40,664
(40,642
)
39,606
Provision for Income Taxes
(10,165
)
(10,316
)
11,271
(9,210
)
Net Income (Loss)
$
29,419
$
30,348
$
(29,371
)
$
30,396
Total Assets as of December 31, 2023
$
8,486,255
$
5,831,880
$
9,415,161
$
23,733,296
Three Months Ended December 31, 2022 1 Net Interest
Income (Loss)
$
94,799
$
56,879
$
(10,940
)
$
140,738
Provision for Credit Losses
1,861
(6
)
(1,655
)
200
Net Interest Income (Loss) After Provision for Credit Losses
92,938
56,885
(9,285
)
140,538
Noninterest Income
31,526
8,288
1,358
41,172
Noninterest Expense
(82,286
)
(17,587
)
(2,830
)
(102,703
)
Income (Loss) Before Income Taxes
42,178
47,586
(10,757
)
79,007
Provision for Income Taxes
(10,840
)
(12,005
)
5,145
(17,700
)
Net Income (Loss)
$
31,338
$
35,581
$
(5,612
)
$
61,307
Total Assets as of December 31, 2022
$
8,520,459
$
5,522,916
$
9,563,502
$
23,606,877
1 Certain prior period information has been reclassified to
conform to current presentation.
Bank of Hawai‘i Corporation and
Subsidiaries Business Segments Selected Financial
Information Table 13b Consumer Commercial
Treasury Consolidated (dollars in thousands)
Banking Banking and Other Total Year
Ended December 31, 2023 Net Interest Income (Loss)
$
400,380
$
215,865
$
(119,220
)
$
497,025
Provision for Credit Losses
7,773
44
1,183
9,000
Net Interest Income (Loss) After Provision for Credit Losses
392,607
215,821
(120,403
)
488,025
Noninterest Income
126,373
33,016
17,220
176,609
Noninterest Expense
(340,336
)
(77,486
)
(19,696
)
(437,518
)
Income (Loss) Before Income Taxes
178,644
171,351
(122,879
)
227,116
Provision for Income Taxes
(46,003
)
(42,806
)
32,895
(55,914
)
Net Income (Loss)
$
132,641
$
128,545
$
(89,984
)
$
171,202
Total Assets as of December 31, 2023
$
8,486,255
$
5,831,880
$
9,415,161
$
23,733,296
Year Ended December 31, 2022 1 Net Interest Income
$
327,445
$
209,273
$
3,840
$
540,558
Provision for Credit Losses
5,324
(206
)
(12,918
)
(7,800
)
Net Interest Income After Provision for Credit Losses
322,121
209,479
16,758
548,358
Noninterest Income
126,337
25,938
5,266
157,541
Noninterest Expense
(330,140
)
(70,601
)
(14,524
)
(415,265
)
Income Before Income Taxes
118,318
164,816
7,500
290,634
Provision for Income Taxes
(29,954
)
(40,659
)
5,783
(64,830
)
Net Income
$
88,364
$
124,157
$
13,283
$
225,804
Total Assets as of December 31, 2022
$
8,520,459
$
5,522,916
$
9,563,502
$
23,606,877
1 Certain prior period information has been reclassified to
conform to current presentation.
Bank of Hawai‘i Corporation and
Subsidiaries Selected Quarterly Financial Data Table
14 Three Months Ended December 31, September
30, June 30, March 31, December 31,
(dollars in thousands, except per share amounts)
2023
2023
2023
2023
2022
Quarterly Operating Results Interest Income Interest and
Fees on Loans and Leases
$
158,324
$
151,245
$
144,541
$
136,501
$
128,683
Income on Investment Securities Available-for-Sale
22,782
23,552
23,301
23,893
18,476
Held-to-Maturity
22,589
22,838
23,375
23,948
23,708
Deposits
23
18
18
27
13
Funds Sold
5,705
12,828
6,395
3,366
1,093
Other
924
1,464
2,121
597
340
Total Interest Income
210,347
211,945
199,751
188,332
172,313
Interest Expense Deposits
87,121
72,153
53,779
37,794
23,494
Securities Sold Under Agreements to Repurchase
1,459
4,034
5,436
5,377
4,289
Funds Purchased
-
-
184
704
318
Short-Term Borrowings
-
-
2,510
3,203
1,978
Other Debt
5,982
14,821
13,494
5,299
1,496
Total Interest Expense
94,562
91,008
75,403
52,377
31,575
Net Interest Income
115,785
120,937
124,348
135,955
140,738
Provision for Credit Losses
2,500
2,000
2,500
2,000
200
Net Interest Income After Provision for Credit Losses
113,285
118,937
121,848
133,955
140,538
Noninterest Income Trust and Asset Management
11,144
10,548
11,215
10,690
10,652
Mortgage Banking
1,016
1,059
1,176
1,004
991
Service Charges on Deposit Accounts
7,949
7,843
7,587
7,737
7,513
Fees, Exchange, and Other Service Charges
13,774
13,824
14,150
13,808
13,906
Investment Securities Losses, Net
(1,619
)
(6,734
)
(1,310
)
(1,792
)
(1,124
)
Annuity and Insurance
1,271
1,156
1,038
1,271
1,087
Bank-Owned Life Insurance
3,176
2,749
2,876
2,842
2,475
Other
5,572
19,889
6,523
5,177
5,672
Total Noninterest Income
42,283
50,334
43,255
40,737
41,172
Noninterest Expense Salaries and Benefits
53,991
58,825
56,175
65,088
57,639
Net Occupancy
9,734
10,327
9,991
9,872
9,499
Net Equipment
9,826
9,477
10,573
10,375
9,942
Data Processing
4,948
4,706
4,599
4,583
4,579
Professional Fees
5,079
3,846
4,651
3,883
3,958
FDIC Insurance
18,545
3,361
3,173
3,234
1,774
Other
13,839
15,059
14,874
14,884
15,312
Total Noninterest Expense
115,962
105,601
104,036
111,919
102,703
Income Before Provision for Income Taxes
39,606
63,670
61,067
62,773
79,007
Provision for Income Taxes
9,210
15,767
15,006
15,931
17,700
Net Income
$
30,396
$
47,903
$
46,061
$
46,842
$
61,307
Preferred Stock Dividends
1,969
1,969
1,969
1,969
1,969
Net Income Available to Common Shareholders
$
28,427
$
45,934
$
44,092
$
44,873
$
59,338
Basic Earnings Per Common Share
$
0.72
$
1.17
$
1.12
$
1.14
$
1.51
Diluted Earnings Per Common Share
$
0.72
$
1.17
$
1.12
$
1.14
$
1.50
Balance Sheet Totals Loans and Leases
$
13,965,026
$
13,919,491
$
13,914,889
$
13,824,522
$
13,646,420
Total Assets
23,733,296
23,549,785
24,947,936
23,931,977
23,606,877
Total Deposits
21,055,045
20,802,309
20,508,615
20,491,300
20,615,696
Total Shareholders' Equity
1,414,242
1,363,840
1,358,279
1,354,430
1,316,995
Performance Ratios Return on Average Assets
0.51
%
0.78
%
0.77
%
0.80
%
1.05
%
Return on Average Shareholders' Equity
8.86
13.92
13.55
14.25
18.91
Return on Average Common Equity
9.55
15.38
14.95
15.79
21.28
Efficiency Ratio 1
73.36
61.66
62.07
63.34
56.46
Net Interest Margin 2
2.13
2.13
2.22
2.47
2.60
1 Efficiency ratio is defined as noninterest expense divided by
total revenue (net interest income and noninterest income). 2 Net
interest margin is defined as net interest income, on a
taxable-equivalent basis, as a percentage of average earning
assets.
Bank of Hawai‘i Corporation and Subsidiaries
Hawaii Economic Trends Table 15 Eleven Months
Ended Year Ended (dollars in millions; jobs in
thousands)
November 30, 2023 December 31, 2022
December 31, 2021 Hawaii Economic Trends State
General Fund Revenues 1
$
8,726.1
0.6
%
$
9,441.3
16.0
%
$
8,137.9
26.9
%
General Excise and Use Tax Revenue 1
4,118.7
5.2
4,263.4
18.3
3,604.3
18.6
Jobs 2
655.6
654.5
642.6
November 30, December 31,
2023
2022
2021
Unemployment, seasonally adjusted 3 Statewide
2.9
%
3.7%
3.2
%
Honolulu County
2.6
3.3
3.7
Hawaii County
1.9
4.7
1.8
Maui County
5.9
4.5
2.4
Kauai County
1.9
4.7
2.7
December 31, (1-year percentage change, except months
of inventory)
2023
2022
2021
2020
Housing Trends (Single Family Oahu) 4 Median Home Price
(5.0
)%
11.6
%
19.3%
5.2
%
Home Sales Volume (units)
(26.3
)%
(23.2
)%
17.9%
2.3
%
Months of Inventory
2.8
2.1
0.8
1.4
Monthly Visitor Arrivals, Percentage Change
(in thousands, except percent change)
Not Seasonally
Adjusted from Previous Year Tourism 5 November
30, 2023
720.3
0.2
%
October 31, 2023
700.3
(3.7
)
September 30, 2023
643.1
(7.1
)
August 31, 2023
766.0
(7.7
)
July 31, 2023
929.4
1.2
June 30, 2023
886.0
5.3
May 31, 2023
790.5
2.1
April 30, 2023
806.2
(0.4
)
March 31, 2023
892.2
13.6
February 28, 2023
733.6
17.6
January 31, 2023
775.1
36.7
December 31, 2022
858.1
14.0
November 30, 2022
719.0
17.1
October 31, 2022
727.4
32.1
September 30, 2022
692.2
37.2
August 31, 2022
829.8
14.8
July 31, 2022
918.6
4.4
June 30, 2022
841.8
6.4
May 31, 2022
774.1
22.9
April 30, 2022
809.6
67.3
March 31, 2022
785.7
78.7
February 28, 2022
623.7
165.1
January 31, 2022
567.2
229.8
December 31,2021
752.8
219.3
November 30, 2021
614.0
234.1
1 Source: Hawaii Department of Business, Economic Development &
Tourism 2 Source: U.S. Bureau of Labor Statistics 3 Source:
University of Hawaii Economic Research Organization (UHERO) 4
Source: Honolulu Board of Realtors 5 Source: Hawaii Tourism
Authority
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240122109934/en/
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808-694-8238
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