Company Announcements

Bank of Hawai‘i Corporation Third Quarter 2024 Financial Results

  • Diluted Earnings Per Common Share $0.93
  • Total Assets $23.8 Billion and Total Deposits $21.0 Billion at Quarter End
  • Net Income $40.4 Million
  • Net Interest Margin 2.18%
  • Board of Directors Declares Dividend of $0.70 Per Common Share

HONOLULU--(BUSINESS WIRE)--Oct. 28, 2024-- Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $0.93 for the third quarter of 2024, compared with diluted earnings per common share of $0.81 in the linked quarter and $1.17 in the same period last year. Net income for the third quarter of 2024 was $40.4 million, up 18.4% from the linked quarter and down 15.8% from the same period last year. The return on average common equity for the third quarter of 2024 was 11.50% compared with 10.41% during the linked quarter and 15.38% during the same period last year.

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“For the third quarter 2024, we are pleased to report improved net interest income and noninterest income, alongside controlled expenses and steady loan and deposit performance. Credit remained excellent,” said Peter Ho, Chairman and CEO.

Financial Highlights

Net interest income for the third quarter of 2024 was $117.6 million, an increase of 2.4% from the linked quarter and a decrease of 2.7% as compared to the same period last year. The increase from the previous quarter was primarily due to increases in the average balance and yield on our earning assets, partially offset by increases in the average balance and cost of our interest-bearing liabilities. The decrease from same period last year was primarily due to decreases in the average balance of our earnings assets and higher funding costs, partially offset by higher earning asset yields and lower average balance of our interest-bearing liabilities.

Net interest margin was 2.18% in the third quarter of 2024, an increase of 3 basis points from the linked quarter and an increase of 5 basis points from the same period last year. The increase from the linked quarter was primarily due to higher earning asset yields, partially offset by higher funding costs. The increase from the same period last year was primarily due to higher earning asset yields and lower average balance of our earning assets, partially offset by higher funding costs.

The average yield on loans and leases was 4.82% in the third quarter of 2024, up 6 basis points from the linked quarter and up 48 basis points from the same period last year. The average yield on total earning assets was 4.06% in the third quarter of 2024, up 7 basis points from the linked quarter and up 34 basis points from the same period last year. The average cost of interest-bearing deposits was 2.52% in the third quarter of 2024, up 6 basis points from the linked quarter and up 57 basis points from the same period last year. The average cost of total deposits, including noninterest-bearing deposits, was 1.87%, up 6 basis points from the linked quarter and up 47 basis points from the same period last year. The changes in yields and rates over the linked quarter and year over year period reflected deposit mix shift and repricing.

Noninterest income was $45.1 million in the third quarter of 2024, an increase of 7.2% from the linked quarter and a decrease of 10.4% from the same period in 2023. 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, noninterest income increased by 9.9% from adjusted noninterest income in the same period in 2023. The increase from the same period last year was primarily due to increases in trust and asset management income, and fees, exchange, and other service charges.

Noninterest expense was $107.1 million in the third quarter of 2024, a decrease of 2.0% from the linked quarter and an increase of 1.4% from the same period last year. Noninterest expense in the second quarter of 2024 included an industry-wide FDIC Special Assessment of $2.6 million, separation expenses of $0.8 million and $0.6 million of other expenses 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 for these items, noninterest expense increased by 1.7% from adjusted noninterest expense in the linked quarter and increased by 3.9% from adjusted noninterest expense in the same period last year.

The effective tax rate for the third quarter of 2024 was 23.33% compared with 24.77% during the linked quarter and 24.76% during the same period last year. The lower effective tax rate in the third quarter of 2024 as compared to the linked quarter was mainly due to a decrease in discrete items and an increase in tax exempt income. The lower effective tax rate in the third quarter of 2024 as compared to the same period last year was primarily due to an increase in tax benefits from low-income housing investments and an increase in tax exempt income.

Asset Quality

The Company’s overall asset quality remained strong during the third quarter of 2024. Provision for credit losses for the third quarter of 2024 was $3.0 million compared with $2.4 million in the linked quarter and $2.0 million in the same period last year.

Total non-performing assets were $19.8 million at September 30, 2024, up $4.6 million from June 30, 2024 and up $8.3 million from September 30, 2023. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.14% at the end of the quarter, an increase of 3 basis points from the linked quarter and an increase of 6 basis points from the same period last year.

Net loan and lease charge-offs during the third quarter of 2024 were $3.8 million or 11 basis points annualized of total average loans and leases outstanding and comprised of gross charge-offs of $5.3 million partially offset by gross recoveries of $1.5 million. Compared to the linked quarter, net loan and lease charge-offs increased by $0.4 million or 1 basis point annualized on total average loans and leases outstanding. Compared to the same period last year, net loan and lease charge-offs increased by $1.8 million or 5 basis points annualized on total average loans and leases outstanding.

The allowance for credit losses on loans and leases was $147.3 million at September 30, 2024, a decrease of $0.1 million from June 30, 2024 and an increase of $2.1 million from September 30, 2023. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.06% at the end of the quarter, down 1 basis point from the linked quarter and up 2 basis points from the same period last year.

Balance Sheet

Total assets were $23.8 billion at September 30, 2024, an increase of 2.1% from June 30, 2024 and an increase of 1.1% from September 30, 2023. The increase from the prior periods was primarily due to an increase in federal funds sold.

The investment securities portfolio was $7.3 billion at September 30, 2024, an increase of 2.1% from June 30, 2024 and a decrease of 2.9% from September 30, 2023. This linked quarter increase was primarily due to the purchases of $236.1 million of floating rate investment securities partially offset by cashflows from the portfolio. The decrease from the same period last year was primarily due to the sale of $159.1 million of investment securities in the third quarter of 2023 and cashflows from the portfolio, partially offset by the above-mentioned purchase of investment securities in the third quarter of 2024. The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.

Total loans and leases were $13.9 billion at September 30, 2024, an increase of 0.6% from June 30, 2024 and flat from September 30, 2023. Total commercial loans were $5.9 billion at September 30, 2024, an increase of 2.0% from June 30, 2024 and an increase of 4.4% from September 30, 2023. The increase from the linked quarter was primarily due to an increase in commercial mortgage portfolio. The increase from the same period last year was primarily due to increases in commercial mortgage, construction and commercial and industrial portfolios. Total consumer loans were $8.0 billion at September 30, 2024, a decrease of 0.3% from the linked quarter and a decrease of 3.1% from the same period last year. The decrease from the linked quarter was primarily due to decreases in our home equity and automobile portfolios, partially offset by an increase in residential mortgage portfolio. The decrease from the same period last year was primarily due to decreases in our residential mortgage, home equity and automobile portfolios.

Total deposits were $21.0 billion at September 30, 2024, an increase of 2.8% from June 30, 2024 and an increase of 0.8% from September 30, 2023. Noninterest-bearing deposits made up 25.8% of total deposit balances at September 30, 2024, down from 26.3% at June 30, 2024 and down from 27.3% at September 30, 2023. Average total deposits were $20.5 billion for the third quarter of 2024, up 0.6% from $20.4 billion in the linked quarter and flat from the same period last year. Insured and uninsured but collateralized deposits represented 58% of total deposit balances at September 30, 2024, down from 59% at June 30, 2024 and flat from September 30, 2023. At the end of the quarter, our readily available liquidity of $10.6 billion exceeded total uninsured and uncollateralized deposits of $8.8 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 14.05% at September 30, 2024 compared with 13.96% at June 30, 2024 and 12.53% at September 30, 2023. The Tier 1 Leverage Ratio was 8.38% at September 30, 2024, up 1 basis point from 8.37% at June 30, 2024 and up 116 basis points from 7.22% at September 30, 2023. The increases from the linked quarter were due to retained earnings growth and partially offset by increases in risk-weighted assets and average total assets. The increases from the same period last year were primarily due to the issuance of $165.0 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, at a rate of 8.00% in the second quarter of 2024.

No shares of common stock were repurchased under the share repurchase program in the third quarter of 2024. Total remaining buyback authority under the share repurchase program was $126.0 million at September 30, 2024.

The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on December 13, 2024 to shareholders of record at the close of business on November 29, 2024.

On October 4, 2024, the Company announced that the Board of Directors declared a quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, and a quarterly dividend payment of $20.00 per share, equivalent to $0.5000 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B. The depositary shares representing the Series A Preferred Stock and Series B Preferred Stock are traded on the NYSE under the symbol “BOH.PRA” and “BOH.PRB”, respectively. The dividends on the Series A Preferred Stock and Series B Preferred Stock will be payable on November 1, 2024 to shareholders of record of the preferred stock as of the close of business on October 17, 2024.

Conference Call Information

The Company will review its third quarter financial results today at 8:00 a.m. Hawai‘i Time (2:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawai‘i Corporation's website, www.boh.com. The webcast can be accessed via the link: https://register.vevent.com/register/BIe5723fafb08d499d83a299d646fa683d. A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawai‘i Time on Monday, October 28, 2024. The replay will be available on the Company's website, www.boh.com.

Investor Announcements

Investors and others should note that the Company intends to announce financial and other information to the Company’s investors using the Company’s investor relations website at https://ir.boh.com, social media channels, press releases, SEC filings and public conference calls and webcasts, all for purposes of complying with the Company’s disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, as information is updated, and new information is posted.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawai‘i Corporation's Annual Report on Form 10-K for the year ended December 31, 2023 and its Form 10-Q for fiscal quarters ended March 31, 2024 and June 30, 2024, which were filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

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

 
Bank of Hawai‘i Corporation and Subsidiaries
Financial Highlights

Table 1

Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,
(dollars in thousands, except per share amounts)

 

2024

 

2024

 

2023

 

2024

 

2023

For the Period:
Operating Results
Net Interest Income

$

117,618

$

114,846

$

120,937

$

346,402

$

381,240

Provision for Credit Losses

 

3,000

 

2,400

 

2,000

 

7,400

 

6,500

Total Noninterest Income

 

45,110

 

42,087

 

50,334

 

129,482

 

134,326

Total Noninterest Expense

 

107,092

 

109,226

 

105,601

 

322,177

 

321,556

Pre-Provision Net Revenue

 

55,636

 

47,707

 

65,670

 

153,707

 

194,010

Net Income

 

40,358

 

34,083

 

47,903

 

110,832

 

140,806

Net Income Available to Common Shareholders 1

 

36,922

 

32,114

 

45,934

 

103,458

 

134,899

Basic Earnings Per Common Share

 

0.94

 

0.81

 

1.17

 

2.62

 

3.44

Diluted Earnings Per Common Share

 

0.93

 

0.81

 

1.17

 

2.61

 

3.42

Dividends Declared Per Common Share

 

0.70

 

0.70

 

0.70

 

2.10

 

2.10

 
Performance Ratios
Return on Average Assets

 

0.69

%

 

0.59

%

 

0.78

%

 

0.64

%

 

0.78

%

Return on Average Shareholders' Equity

 

9.90

 

9.53

 

13.92

 

9.92

 

13.91

Return on Average Common Equity

 

11.50

 

10.41

 

15.38

 

11.04

 

15.37

Efficiency Ratio 2

 

65.81

 

69.60

 

61.66

 

67.70

 

62.37

Net Interest Margin 3

 

2.18

 

2.15

 

2.13

 

2.15

 

2.27

Dividend Payout Ratio 4

 

74.47

 

86.42

 

59.83

 

80.15

 

61.05

Average Shareholders' Equity to Average Assets

 

6.95

 

6.22

 

5.60

 

6.42

 

5.61

 
Average Balances
Average Loans and Leases

$

13,809,977

$

13,831,797

$

13,903,214

$

13,836,760

$

13,833,164

Average Assets

 

23,338,529

 

23,145,107

 

24,387,421

 

23,255,372

 

24,124,360

Average Deposits

 

20,484,391

 

20,358,393

 

20,492,082

 

20,462,222

 

20,314,079

Average Shareholders' Equity

 

1,621,936

 

1,438,476

 

1,365,143

 

1,492,645

 

1,353,815

 
Per Share of Common Stock
Book Value

$

33.22

$

31.91

$

29.78

$

33.22

$

29.78

Tangible Book Value

 

32.43

 

31.12

 

28.99

 

32.43

 

28.99

Market Value
Closing

 

62.77

 

57.21

 

49.69

 

62.77

 

49.69

High

 

70.44

 

62.53

 

58.63

 

73.73

 

81.73

Low

 

55.75

 

54.50

 

39.02

 

54.50

 

30.83

 
September 30, June 30, December 31, September 30,

 

2024

 

2024

 

2023

 

2023

As of Period End:
Balance Sheet Totals
Loans and Leases

$

13,918,583

$

13,831,266

$

13,965,026

$

13,919,491

Total Assets

 

23,799,174

 

23,300,768

 

23,733,296

 

23,549,785

Total Deposits

 

20,978,322

 

20,408,502

 

21,055,045

 

20,802,309

Other Debt

 

558,297

 

560,136

 

560,190

 

560,217

Total Shareholders' Equity

 

1,665,474

 

1,612,849

 

1,414,242

 

1,363,840

 
Asset Quality
Non-Performing Assets

$

19,781

$

15,179

$

11,747

$

11,519

Allowance for Credit Losses - Loans and Leases

 

147,331

 

147,477

 

146,403

 

145,263

Allowance to Loans and Leases Outstanding 5

 

1.06

%

 

1.07

%

 

1.05

%

 

1.04

%

 
Capital Ratios 6
Common Equity Tier 1 Capital Ratio 7

 

11.66

%

 

11.56

%

 

11.33

%

 

11.29

%

Tier 1 Capital Ratio 7

 

14.05

 

13.96

 

12.56

 

12.53

Total Capital Ratio 7

 

15.11

 

15.02

 

13.60

 

13.56

Tier 1 Leverage Ratio

 

8.38

 

8.37

 

7.51

 

7.22

Total Shareholders' Equity to Total Assets

 

7.00

 

6.92

 

5.96

 

5.79

Tangible Common Equity to Tangible Assets 8

 

5.42

 

5.31

 

5.07

 

4.90

Tangible Common Equity to Risk-Weighted Assets 7, 8

 

9.17

 

8.80

 

8.45

 

8.10

 
Non-Financial Data
Full-Time Equivalent Employees

 

1,854

 

1,910

 

1,899

 

1,919

Branches

 

50

 

50

 

51

 

51

ATMs

 

317

 

317

 

318

 

320

 
1 Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
3 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
4 Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.
5 The numerator comprises the Allowance for Credit Losses - Loans and Leases.
6 Regulatory capital ratios as of September 30, 2024 are preliminary.
7 Regulatory capital ratios for June 30, 2024 have been updated to reflect final reported ratios.
8 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
September 30, June 30, December 31, September 30,
(dollars in thousands)

 

2024

 

 

2024

 

 

2023

 

 

2023

 

 
Total Shareholders' Equity

$

1,665,474

 

$

1,612,849

 

$

1,414,242

 

$

1,363,840

 

Less: Preferred Stock

 

345,000

 

 

345,000

 

 

180,000

 

 

180,000

 

Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

 

31,517

 

Tangible Common Equity

$

1,288,957

 

$

1,236,332

 

$

1,202,725

 

$

1,152,323

 

 
Total Assets

$

23,799,174

 

$

23,300,768

 

$

23,733,296

 

$

23,549,785

 

Less: Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

 

31,517

 

Tangible Assets

$

23,767,657

 

$

23,269,251

 

$

23,701,779

 

$

23,518,268

 

 
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements 1, 2

$

14,054,698

 

$

14,051,627

 

$

14,226,780

 

$

14,222,825

 

 
Total Shareholders' Equity to Total Assets

 

7.00

%

 

6.92

%

 

5.96

%

 

5.79

%

Tangible Common Equity to Tangible Assets (Non-GAAP)

 

5.42

%

 

5.31

%

 

5.07

%

 

4.90

%

 
Tier 1 Capital Ratio 1, 2

 

14.05

%

 

13.96

%

 

12.56

%

 

12.53

%

Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1, 2

 

9.17

%

 

8.80

%

 

8.45

%

 

8.10

%

 
1 Regulatory capital ratios as of September 30, 2024 are preliminary.
2 Regulatory capital ratios for June 30, 2024 have been updated to reflect final reported ratios.
 
Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Income Table 3
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,
(dollars in thousands, except per share amounts)

 

2024

 

 

2024

 

 

2023

 

 

 

2024

 

 

2023

 

Interest Income
Interest and Fees on Loans and Leases

$

166,286

 

$

163,208

 

$

151,245

 

$

488,830

 

$

432,287

 

Income on Investment Securities
Available-for-Sale

 

23,257

 

 

21,468

 

 

23,552

 

 

66,482

 

 

70,746

 

Held-to-Maturity

 

21,107

 

 

21,595

 

 

22,838

 

 

64,838

 

 

70,161

 

Deposits

 

29

 

 

25

 

 

18

 

 

84

 

 

63

 

Funds Sold

 

8,951

 

 

6,114

 

 

12,828

 

 

21,192

 

 

22,589

 

Other

 

1,018

 

 

1,120

 

 

1,464

 

 

3,108

 

 

4,182

 

Total Interest Income

 

220,648

 

 

213,530

 

 

211,945

 

 

644,534

 

 

600,028

 

Interest Expense
Deposits

 

96,067

 

 

91,542

 

 

72,153

 

 

276,665

 

 

163,726

 

Securities Sold Under Agreements to Repurchase

 

993

 

 

1,180

 

 

4,034

 

 

3,616

 

 

14,847

 

Funds Purchased

 

-

 

 

44

 

 

-

 

 

44

 

 

888

 

Short-Term Borrowings

 

-

 

 

-

 

 

-

 

 

-

 

 

5,713

 

Other Debt

 

5,970

 

 

5,918

 

 

14,821

 

 

17,807

 

 

33,614

 

Total Interest Expense

 

103,030

 

 

98,684

 

 

91,008

 

 

298,132

 

 

218,788

 

Net Interest Income

 

117,618

 

 

114,846

 

 

120,937

 

 

346,402

 

 

381,240

 

Provision for Credit Losses

 

3,000

 

 

2,400

 

 

2,000

 

 

7,400

 

 

6,500

 

Net Interest Income After Provision for Credit Losses

 

114,618

 

 

112,446

 

 

118,937

 

 

339,002

 

 

374,740

 

Noninterest Income
Fees, Exchange, and Other Service Charges

 

14,945

 

 

13,769

 

 

13,824

 

 

42,837

 

 

41,782

 

Trust and Asset Management

 

11,916

 

 

12,223

 

 

10,548

 

 

35,328

 

 

32,453

 

Service Charges on Deposit Accounts

 

8,075

 

 

7,730

 

 

7,843

 

 

23,752

 

 

23,167

 

Bank-Owned Life Insurance

 

3,533

 

 

3,396

 

 

2,749

 

 

10,285

 

 

8,467

 

Annuity and Insurance

 

1,460

 

 

1,583

 

 

1,156

 

 

4,089

 

 

3,465

 

Mortgage Banking

 

1,188

 

 

1,028

 

 

1,059

 

 

3,167

 

 

3,239

 

Investment Securities Losses, Net

 

(1,103

)

 

(1,601

)

 

(6,734

)

 

(4,201

)

 

(9,836

)

Other

 

5,096

 

 

3,959

 

 

19,889

 

 

14,225

 

 

31,589

 

Total Noninterest Income

 

45,110

 

 

42,087

 

 

50,334

 

 

129,482

 

 

134,326

 

Noninterest Expense
Salaries and Benefits

 

58,626

 

 

57,033

 

 

58,825

 

 

173,874

 

 

180,088

 

Net Occupancy

 

10,806

 

 

10,559

 

 

10,327

 

 

31,821

 

 

30,190

 

Net Equipment

 

10,120

 

 

10,355

 

 

9,477

 

 

30,578

 

 

30,425

 

Professional Fees

 

4,725

 

 

4,929

 

 

3,846

 

 

14,331

 

 

12,380

 

Data Processing

 

4,712

 

 

4,745

 

 

4,706

 

 

14,227

 

 

13,888

 

FDIC Insurance

 

3,355

 

 

7,170

 

 

3,361

 

 

14,139

 

 

9,768

 

Other

 

14,748

 

 

14,435

 

 

15,059

 

 

43,207

 

 

44,817

 

Total Noninterest Expense

 

107,092

 

 

109,226

 

 

105,601

 

 

322,177

 

 

321,556

 

Income Before Provision for Income Taxes

 

52,636

 

 

45,307

 

 

63,670

 

 

146,307

 

 

187,510

 

Provision for Income Taxes

 

12,278

 

 

11,224

 

 

15,767

 

 

35,475

 

 

46,704

 

Net Income

$

40,358

 

$

34,083

 

$

47,903

 

$

110,832

 

$

140,806

 

Preferred Stock Dividends

 

3,436

 

 

1,969

 

 

1,969

 

 

7,375

 

 

5,908

 

Net Income Available to Common Shareholders

$

36,922

 

$

32,114

 

$

45,934

 

$

103,457

 

$

134,898

 

Basic Earnings Per Common Share

$

0.94

 

$

0.81

 

$

1.17

 

$

2.62

 

$

3.44

 

Diluted Earnings Per Common Share

$

0.93

 

$

0.81

 

$

1.17

 

$

2.61

 

$

3.42

 

Dividends Declared Per Common Share

$

0.70

 

$

0.70

 

$

0.70

 

$

2.10

 

$

2.10

 

Basic Weighted Average Common Shares

 

39,488,187

 

 

39,450,551

 

 

39,274,626

 

 

39,429,815

 

 

39,264,450

 

Diluted Weighted Average Common Shares

 

39,736,492

 

 

39,618,705

 

 

39,420,531

 

 

39,654,705

 

 

39,392,433

 

 
Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income Table 4
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,
(dollars in thousands)

 

2024

 

2024

 

2023

 

 

 

2024

 

2023

 

Net Income

$

40,358

$

34,083

$

47,903

 

$

110,832

$

140,806

 

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

 

38,833

 

9,052

 

(18,264

)

 

60,823

 

(7,205

)

Defined Benefit Plans

 

168

 

168

 

84

 

 

505

 

252

 

Other Comprehensive Income (Loss)

 

39,001

 

9,220

 

(18,180

)

 

61,328

 

(6,953

)

Comprehensive Income

$

79,359

$

43,303

$

29,723

 

$

172,160

$

133,853

 

 
Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Condition Table 5
September 30, June 30, December 31, September 30,
(dollars in thousands, except share amounts)

 

2024

 

 

2024

 

 

2023

 

 

2023

 

Assets
Interest-Bearing Deposits in Other Banks

$

8,287

 

$

3,259

 

$

2,761

 

$

4,676

 

Funds Sold

 

992,854

 

 

624,089

 

 

690,112

 

 

386,086

 

Investment Securities
Available-for-Sale

 

2,550,324

 

 

2,298,092

 

 

2,408,933

 

 

2,387,324

 

Held-to-Maturity (Fair Value of $4,072,596; $4,002,122; $4,253,637; and $4,104,469)

 

4,710,245

 

 

4,812,954

 

 

4,997,335

 

 

5,088,013

 

Loans Held for Sale

 

5,048

 

 

2,664

 

 

3,124

 

 

1,450

 

Loans and Leases

 

13,918,583

 

 

13,831,266

 

 

13,965,026

 

 

13,919,491

 

Allowance for Credit Losses

 

(147,331

)

 

(147,477

)

 

(146,403

)

 

(145,263

)

Net Loans and Leases

 

13,771,252

 

 

13,683,789

 

 

13,818,623

 

 

13,774,228

 

Total Earning Assets

 

22,038,010

 

 

21,424,847

 

 

21,920,888

 

 

21,641,777

 

Cash and Due from Banks

 

271,622

 

 

297,990

 

 

308,071

 

 

261,464

 

Premises and Equipment, Net

 

191,899

 

 

192,319

 

 

194,855

 

 

196,094

 

Operating Lease Right-of-Use Assets

 

81,736

 

 

84,757

 

 

86,110

 

 

86,896

 

Accrued Interest Receivable

 

66,534

 

 

67,554

 

 

66,525

 

 

65,541

 

Foreclosed Real Estate

 

2,667

 

 

2,672

 

 

2,098

 

 

1,040

 

Mortgage Servicing Rights

 

19,571

 

 

19,954

 

 

20,880

 

 

21,273

 

Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

 

31,517

 

Bank-Owned Life Insurance

 

475,263

 

 

470,708

 

 

462,894

 

 

458,260

 

Other Assets

 

620,355

 

 

708,450

 

 

639,458

 

 

785,923

 

Total Assets

$

23,799,174

 

$

23,300,768

 

$

23,733,296

 

$

23,549,785

 

 
Liabilities
Deposits
Noninterest-Bearing Demand

$

5,412,048

 

$

5,371,593

 

$

6,058,554

 

$

5,687,442

 

Interest-Bearing Demand

 

3,734,601

 

 

3,928,295

 

 

3,749,717

 

 

3,925,469

 

Savings

 

8,663,147

 

 

8,207,902

 

 

8,189,472

 

 

8,530,384

 

Time

 

3,168,526

 

 

2,900,712

 

 

3,057,302

 

 

2,659,014

 

Total Deposits

 

20,978,322

 

 

20,408,502

 

 

21,055,045

 

 

20,802,309

 

Securities Sold Under Agreements to Repurchase

 

100,490

 

 

100,490

 

 

150,490

 

 

150,490

 

Other Debt

 

558,297

 

 

560,136

 

 

560,190

 

 

560,217

 

Operating Lease Liabilities

 

90,356

 

 

93,364

 

 

94,693

 

 

95,453

 

Retirement Benefits Payable

 

22,870

 

 

23,142

 

 

23,673

 

 

26,074

 

Accrued Interest Payable

 

40,434

 

 

37,278

 

 

41,023

 

 

33,434

 

Taxes Payable

 

1,722

 

 

5,289

 

 

7,636

 

 

6,965

 

Other Liabilities

 

341,209

 

 

459,718

 

 

386,304

 

 

511,003

 

Total Liabilities

 

22,133,700

 

 

21,687,919

 

 

22,319,054

 

 

22,185,945

 

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

 

180,000

 

 

180,000

 

 

180,000

 

 

180,000

 

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

 

165,000

 

 

165,000

 

 

-

 

 

-

 

Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: September 30, 2024 - 58,765,907 / 39,748,304;
June 30, 2024 - 58,765,907 / 39,729,941; December 31, 2023 - 58,755,465 / 39,753,138;
and September 30, 2023 - 58,767,820 / 39,748,700)

 

585

 

 

585

 

 

583

 

 

583

 

Capital Surplus

 

643,620

 

 

639,841

 

 

636,422

 

 

632,425

 

Accumulated Other Comprehensive Loss

 

(335,360

)

 

(374,361

)

 

(396,688

)

 

(441,611

)

Retained Earnings

 

2,127,585

 

 

2,119,140

 

 

2,107,569

 

 

2,108,702

 

Treasury Stock, at Cost (Shares: September 30, 2024 - 19,017,603; June 30, 2024 - 19,035,966;
December 31, 2023 - 19,002,327; and September 30, 2023 - 19,019,120)

 

(1,115,956

)

 

(1,117,356

)

 

(1,113,644

)

 

(1,116,259

)

Total Shareholders' Equity

 

1,665,474

 

 

1,612,849

 

 

1,414,242

 

 

1,363,840

 

Total Liabilities and Shareholders' Equity

$

23,799,174

 

$

23,300,768

 

$

23,733,296

 

$

23,549,785

 

 
Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity Table 6
Accumulated
Preferred Preferred Other
Shares Preferred Shares Preferred Common Comprehensive
Series A Series A Series B Series B Shares Common Capital Income Retained Treasury
(dollars in thousands, except share amounts) Outstanding Stock Outstanding Stock Outstanding Stock Surplus (Loss) Earnings Stock Total
Balance as of December 31, 2023

180,000

$

180,000

-

$

-

39,753,138

 

$

583

$

636,422

 

$

(396,688

)

$

2,107,569

 

$

(1,113,644

)

$

1,414,242

 

Net Income

-

 

-

-

 

-

-

 

 

-

 

-

 

 

-

 

 

110,832

 

 

-

 

 

110,832

 

Other Comprehensive Income

-

 

-

-

 

-

-

 

 

-

 

-

 

 

61,328

 

 

-

 

 

-

 

 

61,328

 

Share-Based Compensation

-

 

-

-

 

-

-

 

 

-

 

11,051

 

 

-

 

 

-

 

 

-

 

 

11,051

 

Preferred Stock Issued, Net

-

 

-

165,000

 

165,000

-

 

 

-

 

(4,386

)

 

-

 

 

-

 

 

-

 

 

160,614

 

Common Stock Issued under Purchase and
Equity Compensation Plans

-

 

-

-

 

-

78,753

 

 

2

 

533

 

 

-

 

 

768

 

 

2,829

 

 

4,132

 

Common Stock Repurchased

-

 

-

-

 

-

(83,587

)

 

-

 

-

 

 

-

 

 

-

 

 

(5,141

)

 

(5,141

)

Cash Dividends Declared Common Stock ($2.10 per share)

-

 

-

-

 

-

-

 

 

-

 

-

 

 

-

 

 

(84,209

)

 

-

 

 

(84,209

)

Cash Dividends Declared Preferred Stock

-

 

-

-

 

-

-

 

 

-

 

-

 

 

-

 

 

(7,375

)

 

-

 

 

(7,375

)

Balance as of September 30, 2024

180,000

$

180,000

165,000

$

165,000

39,748,304

 

$

585

$

643,620

 

$

(335,360

)

$

2,127,585

 

$

(1,115,956

)

$

1,665,474

 

 
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

-

 

-

-

 

-

-

 

 

-

 

-

 

 

-

 

 

140,806

 

 

-

 

 

140,806

 

Other Comprehensive Loss

-

 

-

-

 

-

-

 

 

-

 

-

 

 

(6,953

)

 

-

 

 

-

 

 

(6,953

)

Share-Based Compensation

-

 

-

-

 

-

-

 

 

-

 

11,979

 

 

-

 

 

-

 

 

-

 

 

11,979

 

Common Stock Issued under Purchase and
Equity Compensation Plans

-

 

-

-

 

-

121,040

 

 

1

 

(132

)

 

-

 

 

1,716

 

 

3,216

 

 

4,801

 

Common Stock Repurchased

-

 

-

-

 

-

(208,090

)

 

-

 

-

 

 

-

 

 

-

 

 

(14,056

)

 

(14,056

)

Cash Dividends Declared Common Stock ($2.10 per share)

-

 

-

-

 

-

-

 

 

-

 

-

 

 

-

 

 

(83,824

)

 

-

 

 

(83,824

)

Cash Dividends Declared Preferred Stock

-

 

-

-

 

-

-

 

 

-

 

-

 

 

-

 

 

(5,908

)

 

-

 

 

(5,908

)

Balance as of September 30, 2023

180,000

$

180,000

-

$

-

39,748,700

 

$

583

$

632,425

 

$

(441,611

)

$

2,108,702

 

$

(1,116,259

)

$

1,363,840

 

 
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
September 30, 2024 June 30, 2024 September 30, 2023
Average Income / Yield / Average Income / Yield / Average Income / Yield /
(dollars in millions) Balance Expense 2 Rate Balance Expense 2 Rate Balance Expense 2 Rate
Earning Assets
Interest-Bearing Deposits in Other Banks

$

4.0

$

0.0

2.89

%

$

4.3

$

0.0

2.40

%

$

2.9

$

0.0

2.40

%

Funds Sold

 

663.8

 

9.0

5.28

 

455.8

 

6.1

5.31

 

944.8

 

12.8

5.31

Investment Securities
Available-for-Sale
Taxable

 

2,430.0

 

23.0

3.80

 

2,308.3

 

21.5

3.73

 

2,605.4

 

23.5

3.60

Non-Taxable

 

11.8

 

0.2

6.63

 

1.6

 

0.0

2.01

 

3.5

 

0.0

3.21

Held-to-Maturity
Taxable

 

4,735.5

 

21.0

1.77

 

4,837.2

 

21.4

1.77

 

5,118.6

 

22.7

1.77

Non-Taxable

 

34.4

 

0.2

2.10

 

34.6

 

0.2

2.10

 

35.0

 

0.2

2.10

Total Investment Securities

 

7,211.7

 

44.4

2.46

 

7,181.7

 

43.1

2.40

 

7,762.5

 

46.4

2.39

Loans Held for Sale

 

3.8

 

0.1

6.13

 

1.4

 

0.0

6.30

 

3.8

 

0.1

6.28

Loans and Leases 3
Commercial and Industrial

 

1,658.1

 

22.6

5.43

 

1,683.2

 

22.3

5.34

 

1,515.0

 

18.9

4.96

Paycheck Protection Program

 

7.2

 

0.0

1.42

 

9.5

 

0.1

2.24

 

13.1

 

0.0

1.32

Commercial Mortgage

 

3,744.6

 

52.0

5.51

 

3,723.6

 

51.6

5.57

 

3,792.6

 

51.1

5.35

Construction

 

357.3

 

7.1

7.95

 

321.3

 

6.3

7.85

 

241.9

 

3.7

6.09

Commercial Lease Financing

 

59.6

 

0.4

2.58

 

59.3

 

0.3

2.28

 

62.6

 

0.3

1.84

Residential Mortgage

 

4,593.7

 

46.4

4.03

 

4,595.2

 

45.6

3.97

 

4,715.3

 

42.8

3.62

Home Equity

 

2,206.9

 

22.4

4.04

 

2,231.7

 

21.8

3.92

 

2,283.5

 

20.1

3.49

Automobile

 

795.7

 

9.4

4.72

 

813.5

 

9.1

4.52

 

868.0

 

8.2

3.75

Other 4

 

386.9

 

6.9

7.13

 

394.5

 

6.8

6.95

 

411.2

 

6.5

6.24

Total Loans and Leases

 

13,810.0

 

167.2

4.82

 

13,831.8

 

163.9

4.76

 

13,903.2

 

151.6

4.34

Other

 

63.2

 

0.9

6.43

 

62.5

 

1.2

7.18

 

91.6

 

1.5

6.40

Total Earning Assets

 

21,756.5

 

221.7

4.06

 

21,537.5

 

214.3

3.99

 

22,708.8

 

212.4

3.72

Cash and Due from Banks

 

258.8

 

233.4

 

289.8

Other Assets

 

1,323.2

 

1,374.2

 

1,388.8

Total Assets

$

23,338.5

$

23,145.1

$

24,387.4

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

$

3,775.6

 

8.9

0.94

$

3,788.5

 

8.8

0.94

$

3,929.7

 

6.6

0.67

Savings

 

8,402.9

 

55.7

2.63

 

8,259.2

 

52.0

2.53

 

7,952.6

 

39.1

1.95

Time

 

3,008.7

 

31.5

4.17

 

2,935.9

 

30.7

4.20

 

2,767.8

 

26.5

3.79

Total Interest-Bearing Deposits

 

15,187.2

 

96.1

2.52

 

14,983.6

 

91.5

2.46

 

14,650.1

 

72.2

1.95

Funds Purchased

 

0.0

 

0.0

5.40

 

3.2

 

0.0

5.37

 

-

 

-

-

Short-Term Borrowings

 

0.0

 

0.0

5.40

 

0.0

 

0.0

5.40

 

-

 

-

-

Securities Sold Under Agreements to Repurchase

 

100.5

 

1.0

3.87

 

121.9

 

1.2

3.83

 

528.5

 

4.0

2.99

Other Debt

 

560.1

 

5.9

4.24

 

560.2

 

6.0

4.25

 

1,365.7

 

14.8

4.31

Total Interest-Bearing Liabilities

 

15,847.8

 

103.0

2.59

 

15,668.9

 

98.7

2.53

 

16,544.3

 

91.0

2.18

Net Interest Income

$

118.7

$

115.6

$

121.4

Interest Rate Spread

1.47

%

1.46

%

1.54

%

Net Interest Margin

2.18

%

2.15

%

2.13

%

Noninterest-Bearing Demand Deposits

 

5,297.2

 

5,374.8

 

5,842.0

Other Liabilities

 

571.6

 

662.9

 

636.0

Shareholders' Equity

 

1,621.9

 

1,438.5

 

1,365.1

Total Liabilities and Shareholders' Equity

$

23,338.5

$

23,145.1

$

24,387.4

 
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 $1.0 million, $774 thousand, and $437 thousand for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
3 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
4 Comprised of other consumer revolving credit, installment, and consumer lease financing.
 
Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1 Table 7b
Nine Months Ended Nine Months Ended
September 30, 2024 September 30, 2023
Average Income / Yield / Average Income / Yield /
(dollars in millions) Balance Expense 2 Rate Balance Expense 2 Rate
Earning Assets
Interest-Bearing Deposits in Other Banks

$

4.3

$

0.1

2.59

%

$

3.2

$

0.1

2.60

%

Funds Sold

 

525.7

 

21.2

5.30

 

582.7

 

22.6

5.11

Investment Securities
Available-for-Sale
Taxable

 

2,373.1

 

66.4

3.73

 

2,721.5

 

70.6

3.46

Non-Taxable

 

5.0

 

0.2

5.59

 

7.6

 

0.2

4.22

Held-to-Maturity
Taxable

 

4,832.9

 

64.4

1.78

 

5,227.8

 

69.7

1.78

Non-Taxable

 

34.6

 

0.5

2.10

 

35.2

 

0.6

2.10

Total Investment Securities

 

7,245.6

 

131.5

2.42

 

7,992.1

 

141.1

2.36

Loans Held for Sale

 

2.5

 

0.1

6.16

 

2.7

 

0.1

5.82

Loans and Leases 3
Commercial and Industrial

 

1,664.5

 

67.0

5.38

 

1,461.2

 

52.7

4.82

Paycheck Protection Program

 

9.1

 

0.1

1.70

 

14.8

 

0.2

1.70

Commercial Mortgage

 

3,728.3

 

153.9

5.52

 

3,781.7

 

145.6

5.15

Construction

 

329.0

 

19.0

7.71

 

256.2

 

11.1

5.81

Commercial Lease Financing

 

59.1

 

1.0

2.25

 

64.9

 

0.5

1.11

Residential Mortgage

 

4,613.0

 

137.0

3.96

 

4,695.4

 

123.8

3.51

Home Equity

 

2,229.5

 

65.3

3.91

 

2,265.2

 

57.3

3.38

Automobile

 

813.3

 

27.5

4.51

 

873.0

 

23.2

3.55

Other 4

 

391.0

 

20.2

6.91

 

420.8

 

19.0

6.04

Total Loans and Leases

 

13,836.8

 

491.0

4.74

 

13,833.2

 

433.4

4.19

Other

 

62.6

 

3.1

6.61

 

84.6

 

4.1

6.59

Total Earning Assets

 

21,677.5

 

647.0

3.98

 

22,498.5

 

601.4

3.57

Cash and Due from Banks

 

244.4

 

308.4

Other Assets

 

1,333.5

 

1,317.5

Total Assets

$

23,255.4

$

24,124.4

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

$

3,776.1

 

25.4

0.90

$

4,060.0

 

19.3

0.64

Savings

 

8,264.9

 

157.1

2.54

 

7,876.1

 

86.3

1.46

Time

 

3,008.6

 

94.2

4.18

 

2,288.2

 

58.1

3.40

Total Interest-Bearing Deposits

 

15,049.6

 

276.7

2.46

 

14,224.3

 

163.7

1.54

Funds Purchased

 

1.1

 

0.0

5.37

 

24.8

 

0.9

4.72

Short-Term Borrowings

 

0.0

 

0.0

5.40

 

152.4

 

5.7

4.94

Securities Sold Under Agreements to Repurchase

 

124.2

 

3.6

3.82

 

659.1

 

14.8

2.97

Other Debt

 

560.2

 

17.8

4.25

 

1,043.6

 

33.7

4.31

Total Interest-Bearing Liabilities

 

15,735.1

 

298.1

2.53

 

16,104.2

 

218.8

1.81

Net Interest Income

$

348.8

$

382.6

Interest Rate Spread

1.45

%

1.76

%

Net Interest Margin

2.15

%

2.27

%

Noninterest-Bearing Demand Deposits

 

5,412.6

 

6,089.8

Other Liabilities

 

615.1

 

576.6

Shareholders' Equity

 

1,492.6

 

1,353.8

Total Liabilities and Shareholders' Equity

$

23,255.4

$

24,124.4

 
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 $2.5 million and $1.4 million for the nine months ended September 30, 2024 and September 30, 2023, respectively.
3 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
4 Comprised of other consumer revolving credit, installment, and consumer lease financing.
 
Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8a
Three Months Ended September 30, 2024
Compared to June 30, 2024
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks

$

(0.0

)

$

0.0

 

$

0.0

 

Funds Sold

 

3.0

 

 

(0.0

)

 

2.9

 

Investment Securities
Available-for-Sale
Taxable

 

1.2

 

 

0.3

 

 

1.5

 

Non-Taxable

 

0.1

 

 

0.1

 

 

0.2

 

Held-to-Maturity
Taxable

 

(0.4

)

 

0.1

 

 

(0.4

)

Non-Taxable

 

(0.0

)

 

(0.0

)

 

(0.0

)

Total Investment Securities

 

0.9

 

 

0.4

 

 

1.3

 

Loans Held for Sale

 

0.0

 

 

(0.0

)

 

0.0

 

Loans and Leases
Commercial and Industrial

 

(0.2

)

 

0.5

 

 

0.3

 

Paycheck Protection Program

 

(0.1

)

 

(0.0

)

 

(0.1

)

Commercial Mortgage

 

0.5

 

 

(0.1

)

 

0.4

 

Construction

 

0.8

 

 

(0.0

)

 

0.8

 

Commercial Lease Financing

 

0.1

 

 

0.0

 

 

0.1

 

Residential Mortgage

 

(0.0

)

 

0.8

 

 

0.8

 

Home Equity

 

(0.2

)

 

0.8

 

 

0.6

 

Automobile

 

(0.2

)

 

0.5

 

 

0.3

 

Other 2

 

(0.1

)

 

0.2

 

 

0.1

 

Total Loans and Leases

 

0.6

 

 

2.8

 

 

3.3

 

Other

 

(0.0

)

 

(0.3

)

 

(0.3

)

Total Change in Interest Income

 

4.5

 

 

2.9

 

 

7.4

 

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

0.1

 

 

0.0

 

 

0.1

 

Savings

 

1.1

 

 

2.6

 

 

3.7

 

Time

 

1.0

 

 

(0.2

)

 

0.9

 

Total Interest-Bearing Deposits

 

2.2

 

 

2.4

 

 

4.6

 

Funds Purchased

 

(0.0

)

 

0.0

 

 

(0.0

)

Short-Term Borrowings

 

(0.0

)

 

-

 

 

(0.0

)

Securities Sold Under Agreements to Repurchase

 

(0.2

)

 

0.0

 

 

(0.2

)

Other Debt

 

0.0

 

 

(0.1

)

 

(0.0

)

Total Change in Interest Expense

 

1.9

 

 

2.4

 

 

4.3

 

 
Change in Net Interest Income

$

2.5

 

$

0.5

 

$

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 Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8b
Three Months Ended September 30, 2024
Compared to September 30, 2023
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks

$

0.0

 

$

0.0

 

$

0.0

 

Funds Sold

 

(3.8

)

 

0.0

 

 

(3.8

)

Investment Securities
Available-for-Sale
Taxable

 

(1.7

)

 

1.2

 

 

(0.5

)

Non-Taxable

 

0.1

 

 

0.1

 

 

0.2

 

Held-to-Maturity
Taxable

 

(1.7

)

 

(0.0

)

 

(1.7

)

Non-Taxable

 

(0.0

)

 

(0.0

)

 

(0.0

)

Total Investment Securities

 

(3.3

)

 

1.3

 

 

(2.0

)

Loans Held for Sale

 

0.0

 

 

(0.0

)

 

(0.0

)

Loans and Leases
Commercial and Industrial

 

1.8

 

 

1.9

 

 

3.7

 

Paycheck Protection Program

 

(0.0

)

 

0.0

 

 

(0.0

)

Commercial Mortgage

 

(0.6

)

 

1.5

 

 

0.9

 

Construction

 

2.1

 

 

1.3

 

 

3.4

 

Commercial Lease Financing

 

0.0

 

 

0.1

 

 

0.1

 

Residential Mortgage

 

(1.1

)

 

4.7

 

 

3.6

 

Home Equity

 

(0.7

)

 

3.0

 

 

2.3

 

Automobile

 

(0.7

)

 

1.9

 

 

1.2

 

Other 2

 

(0.5

)

 

0.9

 

 

0.4

 

Total Loans and Leases

 

0.3

 

 

15.3

 

 

15.6

 

Other

 

(0.5

)

 

0.0

 

 

(0.5

)

Total Change in Interest Income

 

(7.3

)

 

16.6

 

 

9.3

 

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

(0.3

)

 

2.6

 

 

2.3

 

Savings

 

2.3

 

 

14.3

 

 

16.6

 

Time

 

2.4

 

 

2.6

 

 

5.0

 

Total Interest-Bearing Deposits

 

4.4

 

 

19.5

 

 

23.9

 

Securities Sold Under Agreements to Repurchase

 

(4.0

)

 

1.0

 

 

(3.0

)

Other Debt

 

(8.7

)

 

(0.2

)

 

(8.9

)

Total Change in Interest Expense

 

(8.3

)

 

20.3

 

 

12.0

 

 
Change in Net Interest Income

$

1.0

 

$

(3.7

)

$

(2.7

)

 
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 Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8c
Nine Months Ended September 30, 2024
Compared to September 30, 2023
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks

$

0.0

 

$

(0.0

)

$

0.0

 

Funds Sold

 

(2.2

)

 

0.8

 

 

(1.4

)

Investment Securities
Available-for-Sale
Taxable

 

(9.4

)

 

5.2

 

 

(4.2

)

Non-Taxable

 

(0.1

)

 

0.1

 

 

-

 

Held-to-Maturity
Taxable

 

(5.2

)

 

(0.1

)

 

(5.3

)

Non-Taxable

 

(0.0

)

 

(0.1

)

 

(0.1

)

Total Investment Securities

 

(14.7

)

 

5.1

 

 

(9.6

)

Loans Held for Sale

 

(0.0

)

 

0.0

 

 

-

 

Loans and Leases
Commercial and Industrial

 

7.8

 

 

6.5

 

 

14.3

 

Paycheck Protection Program

 

(0.1

)

 

(0.0

)

 

(0.1

)

Commercial Mortgage

 

(2.1

)

 

10.4

 

 

8.3

 

Construction

 

3.6

 

 

4.3

 

 

7.9

 

Commercial Lease Financing

 

(0.0

)

 

0.5

 

 

0.5

 

Residential Mortgage

 

(2.2

)

 

15.4

 

 

13.2

 

Home Equity

 

(0.9

)

 

8.9

 

 

8.0

 

Automobile

 

(1.6

)

 

5.9

 

 

4.3

 

Other 2

 

(1.4

)

 

2.6

 

 

1.2

 

Total Loans and Leases

 

3.1

 

 

54.5

 

 

57.6

 

Other

 

(1.1

)

 

0.1

 

 

(1.0

)

Total Change in Interest Income

 

(14.9

)

 

60.5

 

 

45.6

 

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

(1.4

)

 

7.5

 

 

6.1

 

Savings

 

4.5

 

 

66.3

 

 

70.8

 

Time

 

20.8

 

 

15.3

 

 

36.1

 

Total Interest-Bearing Deposits

 

23.9

 

 

89.1

 

 

113.0

 

Funds Purchased

 

(1.0

)

 

0.1

 

 

(0.9

)

Short-Term Borrowings

 

(6.2

)

 

0.5

 

 

(5.7

)

Securities Sold Under Agreements to Repurchase

 

(14.6

)

 

3.4

 

 

(11.2

)

Other Debt

 

(15.4

)

 

(0.5

)

 

(15.9

)

Total Change in Interest Expense

 

(13.3

)

 

92.6

 

 

79.3

 

 
Change in Net Interest Income

$

(1.6

)

$

(32.1

)

$

(33.7

)

 
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 Hawai‘i Corporation and Subsidiaries
Salaries and Benefits Table 9
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,
(dollars in thousands)

 

2024

 

2024

 

2023

 

 

2024

 

2023

Salaries

$

38,993

$

38,662

$

39,426

$

115,686

$

116,005

Incentive Compensation

 

5,086

 

3,109

 

2,956

 

11,285

 

9,937

Retirement and Other Benefits

 

3,692

 

3,961

 

3,809

 

11,952

 

13,186

Medical, Dental, and Life Insurance

 

3,512

 

3,211

 

2,835

 

9,935

 

10,267

Share-Based Compensation

 

3,364

 

3,296

 

4,072

 

10,459

 

11,327

Payroll Taxes

 

2,839

 

3,070

 

2,921

 

10,639

 

12,079

Commission Expense

 

979

 

939

 

676

 

2,490

 

2,098

Separation Expense

 

161

 

785

 

2,130

 

1,428

 

5,189

Total Salaries and Benefits

$

58,626

$

57,033

$

58,825

$

173,874

$

180,088

 
Bank of Hawai‘i Corporation and Subsidiaries
Loan and Lease Portfolio Balances Table 10
September 30, June 30, March 31, December 31, September 30,
(dollars in thousands)

 

2024

 

2024

 

2024

 

2023

 

2023

Commercial
Commercial Mortgage

$

3,868,566

$

3,741,140

$

3,715,032

$

3,749,016

$

3,784,339

Commercial and Industrial

 

1,675,347

 

1,691,441

 

1,669,482

 

1,652,699

 

1,569,572

Construction

 

319,150

 

315,571

 

323,069

 

304,463

 

251,507

Lease Financing

 

60,665

 

59,388

 

57,817

 

59,939

 

61,522

Paycheck Protection Program

 

6,346

 

7,997

 

10,177

 

11,369

 

12,529

Total Commercial

 

5,930,074

 

5,815,537

 

5,775,577

 

5,777,486

 

5,679,469

Consumer
Residential Mortgage

 

4,622,677

 

4,595,586

 

4,616,900

 

4,684,171

 

4,699,140

Home Equity

 

2,195,844

 

2,221,073

 

2,240,946

 

2,264,827

 

2,285,974

Automobile

 

786,910

 

806,240

 

825,854

 

837,830

 

856,113

Other 1

 

383,078

 

392,830

 

394,560

 

400,712

 

398,795

Total Consumer

 

7,988,509

 

8,015,729

 

8,078,260

 

8,187,540

 

8,240,022

Total Loans and Leases

$

13,918,583

$

13,831,266

$

13,853,837

$

13,965,026

$

13,919,491

1 Comprised of other revolving credit, installment, and lease financing.
 
Deposits
September 30, June 30, March 31, December 31, September 30,
(dollars in thousands)

 

2024

 

2024

 

2024

 

2023

 

2023

Consumer

$

10,340,466

$

10,382,432

$

10,429,004

$

10,319,809

$

10,036,261

Commercial

 

8,356,239

 

7,995,618

 

8,323,330

 

8,601,224

 

8,564,536

Public and Other

 

2,281,617

 

2,030,452

 

1,924,252

 

2,134,012

 

2,201,512

Total Deposits

$

20,978,322

$

20,408,502

$

20,676,586

$

21,055,045

$

20,802,309

 
 
Average Deposits
Three Months Ended
September 30, June 30, March 31, December 31, September 30,
(dollars in thousands)

 

2024

 

2024

 

2024

 

2023

 

2023

Consumer

$

10,345,772

$

10,379,724

$

10,313,730

$

10,092,727

$

9,963,690

Commercial

 

8,207,310

 

8,188,685

 

8,334,540

 

8,581,426

 

8,288,891

Public and Other

 

1,931,309

 

1,789,984

 

1,895,370

 

2,029,917

 

2,239,501

Total Deposits

$

20,484,391

$

20,358,393

$

20,543,640

$

20,704,070

$

20,492,082

 
Bank of Hawai‘i Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 11
September 30, June 30, March 31, December 31, September 30,
(dollars in thousands)

 

2024

 

2024

 

2024

 

2023

 

2023

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

$

6,218

 

$

3,681

 

$

13

 

$

39

 

$

43

 

Commercial Mortgage

 

2,680

 

 

2,601

 

 

2,714

 

 

2,884

 

 

2,996

 

Total Commercial

 

8,898

 

 

6,282

 

 

2,727

 

 

2,923

 

 

3,039

 

Consumer
Residential Mortgage

 

4,269

 

 

2,998

 

 

3,199

 

 

2,935

 

 

3,706

 

Home Equity

 

3,947

 

 

3,227

 

 

3,240

 

 

3,791

 

 

3,734

 

Total Consumer

 

8,216

 

 

6,225

 

 

6,439

 

 

6,726

 

 

7,440

 

Total Non-Accrual Loans and Leases

 

17,114

 

 

12,507

 

 

9,166

 

 

9,649

 

 

10,479

 

Foreclosed Real Estate

 

2,667

 

 

2,672

 

 

2,672

 

 

2,098

 

 

1,040

 

Total Non-Performing Assets

$

19,781

 

$

15,179

 

$

11,838

 

$

11,747

 

$

11,519

 

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

$

4,421

 

$

4,524

 

$

3,378

 

$

3,814

 

$

3,519

 

Home Equity

 

1,980

 

 

2,025

 

 

1,580

 

 

1,734

 

 

2,172

 

Automobile

 

580

 

 

568

 

 

517

 

 

399

 

 

393

 

Other 1

 

554

 

 

733

 

 

872

 

 

648

 

 

643

 

Total Consumer

 

7,535

 

 

7,850

 

 

6,347

 

 

6,595

 

 

6,727

 

Total Accruing Loans and Leases Past Due 90 Days or More

$

7,535

 

$

7,850

 

$

6,347

 

$

6,595

 

$

6,727

 

Total Loans and Leases

$

13,918,583

 

$

13,831,266

 

$

13,853,837

 

$

13,965,026

 

$

13,919,491

 

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

 

0.12

%

 

0.09

%

 

0.07

%

 

0.07

%

 

0.08

%

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

 

0.14

%

 

0.11

%

 

0.09

%

 

0.08

%

 

0.08

%

 
Ratio of Non-Performing Assets to Total Assets

 

0.08

%

 

0.07

%

 

0.05

%

 

0.05

%

 

0.05

%

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

 

0.15

%

 

0.11

%

 

0.05

%

 

0.05

%

 

0.05

%

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

 

0.14

%

 

0.11

%

 

0.11

%

 

0.11

%

 

0.10

%

 
Ratio of Non-Performing Assets and Accruing Loans and Leases
Past Due 90 Days or More to Total Loans and Leases
and Foreclosed Real Estate

 

0.20

%

 

0.17

%

 

0.13

%

 

0.13

%

 

0.13

%

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

$

15,179

 

$

11,838

 

$

11,747

 

$

11,519

 

$

11,477

 

Additions

 

5,557

 

 

5,257

 

 

1,652

 

 

2,683

 

 

1,318

 

Reductions
Payments

 

(734

)

 

(844

)

 

(921

)

 

(2,018

)

 

(1,017

)

Return to Accrual Status

 

(81

)

 

(1,018

)

 

(617

)

 

(437

)

 

(259

)

Charge-offs / Write-downs

 

(140

)

 

(54

)

 

(23

)

 

-

 

 

-

 

Total Reductions

 

(955

)

 

(1,916

)

 

(1,561

)

 

(2,455

)

 

(1,276

)

Balance at End of Quarter

$

19,781

 

$

15,179

 

$

11,838

 

$

11,747

 

$

11,519

 

 
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 Nine Months Ended
September 30, June 30, September 30, September 30,
(dollars in thousands)

 

2024

 

 

2024

 

 

2023

 

 

 

2024

 

 

2023

 

Balance at Beginning of Period

$

151,155

 

$

152,148

 

$

151,702

 

$

152,429

 

$

151,247

 

 
Loans and Leases Charged-Off
Commercial
Commercial and Industrial

 

(1,021

)

 

(875

)

 

(294

)

 

(2,256

)

 

(758

)

Consumer
Residential Mortgage

 

-

 

 

(48

)

 

-

 

 

(48

)

 

(6

)

Home Equity

 

(125

)

 

(202

)

 

(13

)

 

(362

)

 

(68

)

Automobile

 

(1,651

)

 

(1,095

)

 

(1,353

)

 

(3,794

)

 

(4,309

)

Other 1

 

(2,539

)

 

(2,610

)

 

(1,957

)

 

(7,461

)

 

(6,296

)

Total Loans and Leases Charged-Off

 

(5,336

)

 

(4,830

)

 

(3,617

)

 

(13,921

)

 

(11,437

)

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

 

66

 

 

263

 

 

72

 

 

445

 

 

225

 

Consumer
Residential Mortgage

 

48

 

 

63

 

 

69

 

 

153

 

 

188

 

Home Equity

 

318

 

 

113

 

 

131

 

 

615

 

 

893

 

Automobile

 

552

 

 

481

 

 

721

 

 

1,559

 

 

2,170

 

Other 1

 

522

 

 

517

 

 

575

 

 

1,645

 

 

1,867

 

Total Recoveries on Loans and Leases Previously Charged-Off

 

1,506

 

 

1,437

 

 

1,568

 

 

4,417

 

 

5,343

 

Net Charged-Off - Loans and Leases

 

(3,830

)

 

(3,393

)

 

(2,049

)

 

(9,504

)

 

(6,094

)

Provision for Credit Losses:
Loans and Leases

 

3,684

 

 

3,206

 

 

1,945

 

 

10,432

 

 

6,918

 

Unfunded Commitments

 

(684

)

 

(806

)

 

55

 

 

(3,032

)

 

(418

)

Total Provision for Credit Losses

 

3,000

 

 

2,400

 

 

2,000

 

 

7,400

 

 

6,500

 

Balance at End of Period

$

150,325

 

$

151,155

 

$

151,653

 

$

150,325

 

$

151,653

 

 
Components
Allowance for Credit Losses - Loans and Leases

$

147,331

 

$

147,477

 

$

145,263

 

$

147,331

 

$

145,263

 

Reserve for Unfunded Commitments

 

2,994

 

 

3,678

 

 

6,390

 

 

2,994

 

 

6,390

 

Total Reserve for Credit Losses

$

150,325

 

$

151,155

 

$

151,653

 

$

150,325

 

$

151,653

 

 
Average Loans and Leases Outstanding

$

13,809,977

 

$

13,831,797

 

$

13,903,214

 

$

13,836,760

 

$

13,833,164

 

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

 

0.11

%

 

0.10

%

 

0.06

%

 

0.09

%

 

0.06

%

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

 

1.06

%

 

1.07

%

 

1.04

%

 

1.06

%

 

1.04

%

 
1 Comprised of other revolving credit, installment, and lease financing.
2 The numerator comprises the Allowance for Credit Losses - Loans and Leases.
 
Bank of Hawai‘i Corporation and Subsidiaries
Business Segments Selected Financial Information Table 13a
Consumer Commercial Treasury Consolidated
(dollars in thousands) Banking Banking and Other Total
Three Months Ended September 30, 2024
Net Interest Income (Expense)

$

97,919

 

$

50,556

 

$

(30,857

)

$

117,618

 

Provision for Credit Losses

 

3,058

 

 

772

 

 

(830

)

 

3,000

 

Net Interest Income (Expense) After Provision for Credit Losses

 

94,861

 

 

49,784

 

 

(30,027

)

 

114,618

 

Noninterest Income

 

34,133

 

 

7,786

 

 

3,191

 

 

45,110

 

Noninterest Expense

 

(84,712

)

 

(18,825

)

 

(3,555

)

 

(107,092

)

Income (Loss) Before Income Taxes

 

44,282

 

 

38,745

 

 

(30,391

)

 

52,636

 

Provision for Income Taxes

 

(11,289

)

 

(9,816

)

 

8,827

 

 

(12,278

)

Net Income (Loss)

$

32,993

 

$

28,929

 

$

(21,564

)

$

40,358

 

Total Assets as of September 30, 2024

$

8,308,389

 

$

5,952,321

 

$

9,538,464

 

$

23,799,174

 

 
Three Months Ended September 30, 2023 1
Net Interest Income (Expense)

$

98,984

 

$

52,066

 

$

(30,113

)

$

120,937

 

Provision for Credit Losses

 

1,974

 

 

74

 

 

(48

)

 

2,000

 

Net Interest Income (Expense) After Provision for Credit Losses

 

97,010

 

 

51,992

 

 

(30,065

)

 

118,937

 

Noninterest Income

 

31,027

 

 

8,483

 

 

10,824

 

 

50,334

 

Noninterest Expense

 

(81,377

)

 

(18,937

)

 

(5,287

)

 

(105,601

)

Income (Loss) Before Income Taxes

 

46,660

 

 

41,538

 

 

(24,528

)

 

63,670

 

Provision for Income Taxes

 

(12,073

)

 

(10,523

)

 

6,829

 

 

(15,767

)

Net Income (Loss)

$

34,587

 

$

31,015

 

$

(17,699

)

$

47,903

 

Total Assets as of September 30, 2023

$

8,584,796

 

$

5,719,577

 

$

9,245,412

 

$

23,549,785

 

 
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
Nine Months Ended September 30, 2024
Net Interest Income (Expense)

$

293,118

 

$

152,934

 

$

(99,650

)

$

346,402

 

Provision for Credit Losses

 

8,218

 

 

1,239

 

 

(2,057

)

 

7,400

 

Net Interest Income (Expense) After Provision for Credit Losses

 

284,900

 

 

151,695

 

 

(97,593

)

 

339,002

 

Noninterest Income

 

99,768

 

 

21,278

 

 

8,436

 

 

129,482

 

Noninterest Expense

 

(254,428

)

 

(55,478

)

 

(12,271

)

 

(322,177

)

Income (Loss) Before Income Taxes

 

130,240

 

 

117,495

 

 

(101,428

)

 

146,307

 

Provision for Income Taxes

 

(33,154

)

 

(29,711

)

 

27,390

 

 

(35,475

)

Net Income (Loss)

$

97,086

 

$

87,784

 

$

(74,038

)

$

110,832

 

Total Assets as of September 30, 2024

$

8,308,389

 

$

5,952,321

 

$

9,538,464

 

$

23,799,174

 

 
Nine Months Ended September 30, 2023 1
Net Interest Income (Expense)

$

293,681

 

$

159,864

 

$

(72,305

)

$

381,240

 

Provision for Credit Losses

 

6,035

 

 

59

 

 

406

 

 

6,500

 

Net Interest Income (Expense) After Provision for Credit Losses

 

287,646

 

 

159,805

 

 

(72,711

)

 

374,740

 

Noninterest Income

 

94,126

 

 

25,072

 

 

15,128

 

 

134,326

 

Noninterest Expense

 

(247,543

)

 

(58,528

)

 

(15,485

)

 

(321,556

)

Income (Loss) Before Income Taxes

 

134,229

 

 

126,349

 

 

(73,068

)

 

187,510

 

Provision for Income Taxes

 

(34,566

)

 

(31,345

)

 

19,207

 

 

(46,704

)

Net Income (Loss)

$

99,663

 

$

95,004

 

$

(53,861

)

$

140,806

 

Total Assets as of September 30, 2023

$

8,584,796

 

$

5,719,577

 

$

9,245,412

 

$

23,549,785

 

 
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
September 30, June 30, March 31, December 31, September 30,
(dollars in thousands, except per share amounts)

 

2024

 

 

2024

 

 

2024

 

 

2023

 

 

2023

 

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

$

166,286

 

$

163,208

 

$

159,336

 

$

158,324

 

$

151,245

 

Income on Investment Securities
Available-for-Sale

 

23,257

 

 

21,468

 

 

21,757

 

 

22,782

 

 

23,552

 

Held-to-Maturity

 

21,107

 

 

21,595

 

 

22,136

 

 

22,589

 

 

22,838

 

Deposits

 

29

 

 

25

 

 

30

 

 

23

 

 

18

 

Funds Sold

 

8,951

 

 

6,114

 

 

6,127

 

 

5,705

 

 

12,828

 

Other

 

1,018

 

 

1,120

 

 

970

 

 

924

 

 

1,464

 

Total Interest Income

 

220,648

 

 

213,530

 

 

210,356

 

 

210,347

 

 

211,945

 

Interest Expense
Deposits

 

96,067

 

 

91,542

 

 

89,056

 

 

87,121

 

 

72,153

 

Securities Sold Under Agreements to Repurchase

 

993

 

 

1,180

 

 

1,443

 

 

1,459

 

 

4,034

 

Funds Purchased

 

-

 

 

44

 

 

-

 

 

-

 

 

-

 

Other Debt

 

5,970

 

 

5,918

 

 

5,919

 

 

5,982

 

 

14,821

 

Total Interest Expense

 

103,030

 

 

98,684

 

 

96,418

 

 

94,562

 

 

91,008

 

Net Interest Income

 

117,618

 

 

114,846

 

 

113,938

 

 

115,785

 

 

120,937

 

Provision for Credit Losses

 

3,000

 

 

2,400

 

 

2,000

 

 

2,500

 

 

2,000

 

Net Interest Income After Provision for Credit Losses

 

114,618

 

 

112,446

 

 

111,938

 

 

113,285

 

 

118,937

 

Noninterest Income
Fees, Exchange, and Other Service Charges

 

14,945

 

 

13,769

 

 

14,123

 

 

13,774

 

 

13,824

 

Trust and Asset Management

 

11,916

 

 

12,223

 

 

11,189

 

 

11,144

 

 

10,548

 

Service Charges on Deposit Accounts

 

8,075

 

 

7,730

 

 

7,947

 

 

7,949

 

 

7,843

 

Bank-Owned Life Insurance

 

3,533

 

 

3,396

 

 

3,356

 

 

3,176

 

 

2,749

 

Annuity and Insurance

 

1,460

 

 

1,583

 

 

1,046

 

 

1,271

 

 

1,156

 

Mortgage Banking

 

1,188

 

 

1,028

 

 

951

 

 

1,016

 

 

1,059

 

Investment Securities Losses, Net

 

(1,103

)

 

(1,601

)

 

(1,497

)

 

(1,619

)

 

(6,734

)

Other

 

5,096

 

 

3,959

 

 

5,170

 

 

5,572

 

 

19,889

 

Total Noninterest Income

 

45,110

 

 

42,087

 

 

42,285

 

 

42,283

 

 

50,334

 

Noninterest Expense
Salaries and Benefits

 

58,626

 

 

57,033

 

 

58,215

 

 

53,991

 

 

58,825

 

Net Occupancy

 

10,806

 

 

10,559

 

 

10,456

 

 

9,734

 

 

10,327

 

Net Equipment

 

10,120

 

 

10,355

 

 

10,103

 

 

9,826

 

 

9,477

 

Professional Fees

 

4,725

 

 

4,929

 

 

4,677

 

 

5,079

 

 

3,846

 

Data Processing

 

4,712

 

 

4,745

 

 

4,770

 

 

4,948

 

 

4,706

 

FDIC Insurance

 

3,355

 

 

7,170

 

 

3,614

 

 

18,545

 

 

3,361

 

Other

 

14,748

 

 

14,435

 

 

14,024

 

 

13,839

 

 

15,059

 

Total Noninterest Expense

 

107,092

 

 

109,226

 

 

105,859

 

 

115,962

 

 

105,601

 

Income Before Provision for Income Taxes

 

52,636

 

 

45,307

 

 

48,364

 

 

39,606

 

 

63,670

 

Provision for Income Taxes

 

12,278

 

 

11,224

 

 

11,973

 

 

9,210

 

 

15,767

 

Net Income

$

40,358

 

$

34,083

 

$

36,391

 

$

30,396

 

$

47,903

 

Preferred Stock Dividends

 

3,436

 

 

1,969

 

 

1,969

 

 

1,969

 

 

1,969

 

Net Income Available to Common Shareholders

$

36,922

 

$

32,114

 

$

34,422

 

$

28,427

 

$

45,934

 

 
Basic Earnings Per Common Share

$

0.94

 

$

0.81

 

$

0.87

 

$

0.72

 

$

1.17

 

Diluted Earnings Per Common Share

$

0.93

 

$

0.81

 

$

0.87

 

$

0.72

 

$

1.17

 

 
Balance Sheet Totals
Loans and Leases

$

13,918,583

 

$

13,831,266

 

$

13,853,837

 

$

13,965,026

 

$

13,919,491

 

Total Assets

 

23,799,174

 

 

23,300,768

 

 

23,420,860

 

 

23,733,296

 

 

23,549,785

 

Total Deposits

 

20,978,322

 

 

20,408,502

 

 

20,676,586

 

 

21,055,045

 

 

20,802,309

 

Total Shareholders' Equity

 

1,665,474

 

 

1,612,849

 

 

1,435,977

 

 

1,414,242

 

 

1,363,840

 

 
Performance Ratios
Return on Average Assets

 

0.69

%

 

0.59

%

 

0.63

%

 

0.51

%

 

0.78

%

Return on Average Shareholders' Equity

 

9.90

 

 

9.53

 

 

10.34

 

 

8.86

 

 

13.92

 

Return on Average Common Equity

 

11.50

 

 

10.41

 

 

11.20

 

 

9.55

 

 

15.38

 

Efficiency Ratio 1

 

65.81

 

 

69.60

 

 

67.76

 

 

73.36

 

 

61.66

 

Net Interest Margin 2

 

2.18

 

 

2.15

 

 

2.11

 

 

2.13

 

 

2.13

 

 
1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
2 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
 
Bank of Hawai‘i Corporation and Subsidiaries
Hawaii Economic Trends Table 15
Eight Months Ended Year Ended
(dollars in millions; jobs in thousands) August 31, 2024 December 31, 2023 December 31, 2022
Hawaii Economic Trends
State General Fund Revenues 1

$

6,568.2

1.5

%

$

9,504.1

 

0.7

%

$

9,441.3

 

16.0

%

General Excise and Use Tax Revenue 1

 

3,094.1

2.2

 

 

4,474.1

 

4.9

 

 

4,263.4

 

18.3

 

Jobs 2

 

651.1

 

655.2

 

 

653.3

 

 
September 30, December 31,

2024

2023

2022

Unemployment, seasonally adjusted 2
Statewide

2.9

%

 

3.0

%

3.2

%

Honolulu County

2.8

 

 

2.6

 

3.1

 

Hawaii County

3.2

 

 

2.8

 

3.5

 

Maui County

2.5

 

 

6.2

 

3.5

 

Kauai County

3.5

 

 

2.5

 

3.1

 

 
September 30, December 31,
(1-year percentage change, except months of inventory)

 

2024

 

2023

 

2022

 

2021

 

Housing Trends (Single Family Oahu) 3
Median Home Price

 

4.8

%

(5.0

)%

 

11.6

%

19.3

%

Home Sales Volume (units)

 

5.8

%

(26.3

)%

 

(23.2

)%

17.9

%

Months of Inventory

 

3.4

 

2.8

 

 

2.1

 

0.8

 

 
Monthly Visitor Arrivals, Percentage Change
(in thousands, except percent change) Not Seasonally Adjusted from Previous Year
Tourism 4
August 31, 2024

819.2

 

6.9

%

July 31, 2024

925.3

 

(0.5

)

June 30, 2024

872.6

 

(1.5

)

May 31, 2024

757.8

 

(4.1

)

April 30, 2024

721.9

 

(10.5

)

March 31, 2024

843.5

 

(5.5

)

February 29, 2024

752.7

 

2.6

 

January 31, 2024

745.6

 

(3.8

)

December 31, 2023

845.6

 

(1.5

)

November 30, 2023

720.3

 

0.2

 

October 31, 2023

700.3

 

(3.7

)

September 30, 2023

643.1

 

(7.1

)

August 31, 2023

766.0

 

(7.7

)

July 31, 2023

929.4

 

1.2

 

June 30, 2023

886.0

 

5.3

 

May 31, 2023

790.5

 

2.1

 

April 30, 2023

806.2

 

(0.4

)

March 31, 2023

892.2

 

13.6

 

February 28, 2023

733.6

 

17.6

 

January 31, 2023

775.1

 

36.7

 

December 31, 2022

858.3

 

14.0

 

November 30, 2022

719.0

 

17.1

 

October 31, 2022

727.4

 

32.1

 

September 30, 2022

692.2

 

37.2

 

August 31, 2022

829.8

 

14.8

 

 

 

 

 

 

 

 

1 Source: Hawaii Department of Business, Economic Development & Tourism
2 Source: U.S. Bureau of Labor Statistics
3 Source: Honolulu Board of Realtors
4 Source: Hawaii Tourism Authority

 

Investor/Analyst Inquiries
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Phone: 808-694-8238

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Source: Bank of Hawai‘i Corporation