- Diluted Earnings Per Share $0.95
- Net Income $43.8 Million
- Board of Directors Declares Dividend of $0.45 Per Share
Bank of Hawaii Corporation (NYSE:BOH) today reported diluted earnings per share of $0.95 for the first quarter of 2012, up from $0.85 in the previous quarter, and up from $0.88 in the same quarter last year. Net income for the first quarter of 2012 was $43.8 million, an increase of $4.6 million or 11.7 percent compared to net income of $39.2 million in the fourth quarter of 2011, and up $1.5 million or 3.4 percent from net income of $42.4 million in the first quarter of 2011.
Loan and lease balances increased to $5.6 billion during the first quarter of 2012, up 1.1 percent compared to the end of the fourth quarter of 2011 and up 5.1 percent compared to the end of the same quarter last year. Deposit growth continued to remain strong, increasing to $10.6 billion at March 31, 2012. The allowance for loan and lease losses declined to $135.6 million and currently represents 2.42 percent of outstanding loans and leases.
"Bank of Hawaii Corporation had a good start in 2012 with solid performance in the first quarter," said Peter S. Ho, Chairman, President and CEO. "Loan balances continued to grow, deposits remained strong, and our net interest margin slightly improved during the quarter. We maintained our disciplined expense control management and credit costs are continuing to decline as the Hawaii economy recovers."
The return on average assets for the first quarter of 2012 was 1.29 percent, up from 1.17 percent in the previous quarter, and down from 1.32 percent for the same quarter last year. The return on average equity for the first quarter of 2012 was 17.26 percent compared to 15.23 percent for the fourth quarter of 2011 and 16.86 percent in the first quarter of 2011. The efficiency ratio for the first quarter of 2012 was 58.35 percent, an improvement from 60.42 percent in the previous quarter.
Financial Highlights
Net interest income, on a taxable equivalent basis, for the first quarter of 2012 was $100.0 million, up $2.8 million from net interest income of $97.2 million in the fourth quarter of 2011 and essentially flat with net interest income of $100.1 million in the first quarter of 2011. Analyses of the changes in net interest income are included in Tables 8a and 8b.
The net interest margin was 3.06 percent for the first quarter of 2012, a 2 basis point increase from the net interest margin of 3.04 percent in the fourth quarter of 2011 and an 18 basis point decrease from 3.24 percent in the first quarter of 2011. The increase in the net interest margin compared to the fourth quarter is largely due to an improving balance sheet mix. The decrease in the net interest margin compared to the first quarter of 2011 was primarily due to higher levels of liquidity and lower yields on loans and investment securities.
Results for the first quarter of 2012 included a provision for credit losses of $0.4 million, or $3.0 million less than net charge-offs. The provision for credit losses during the fourth quarter of 2011 was $2.2 million, or $4.8 million less than net charge-offs. The provision for credit losses of $4.7 million equaled net charge-offs during the first quarter of 2011.
Noninterest income was $48.1 million for the first quarter of 2012, an increase of $4.7 million compared to noninterest income of $43.4 million in the fourth quarter of 2011, and a decrease of $5.8 million compared to noninterest income of $53.9 million in the first quarter of 2011. Noninterest income in the first quarter of 2012 included a previously disclosed gain of $3.5 million on the early termination of leveraged leases for two cargo ships and a loss of $1.0 million on the sale and termination of an aircraft lease. There were no significant nonrecurring noninterest income items during the fourth quarter of 2011. Noninterest income in the first quarter of 2011 included net gains of $6.1 million on sales of investment securities. Adjusted for these items, the decrease in noninterest income compared to the first quarter of 2011 is largely due to a reduction in debit card fees, which were $3.0 million lower than the first quarter of 2011.
Noninterest expense was $85.2 million in the first quarter of 2012, up $0.8 million from noninterest expense of $84.4 million in the fourth quarter of 2011, and down $0.9 million from noninterest expense of $86.1 million in the same quarter last year. Noninterest expense in the first quarter of 2012 included $1.2 million for the final phase of a refresh of the Company's personal computers. There were no significant nonrecurring noninterest expense items during the previous quarter or comparable quarter last year. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.
The effective tax rate for the first quarter of 2012 was 27.55 percent compared to 26.06 percent in the previous quarter, and 32.60 percent during the same quarter last year. The lower effective tax rate in the first quarter of 2012 was primarily due to a $2.7 million credit to the provision for income taxes related to the previously disclosed early termination of leveraged leases for two cargo ships. The effective tax rate for the fourth quarter of 2011 was favorably impacted by the release of tax reserves determined during the quarter.
The Company's business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury & Other. Results are determined based on the Company's internal financial management reporting process and organizational structure. Selected financial information for the business segments is included in Table 13.
Asset Quality
The Company's overall asset quality during the first quarter of 2012 reflects the gradually improving Hawaii economy. Total non-performing assets increased to $41.4 million at March 31, 2012 primarily due to the lengthy judiciary foreclosure process for residential mortgage loans. As a percentage of total loans and leases, including loans held for sale and foreclosed real estate, non-performing assets were 0.74 percent at March 31, 2012, a slight increase from 0.73 percent at December 31, 2011 and up from 0.65 percent at March 31, 2011.
Accruing loans and leases past due 90 days or more were $10.1 million at March 31, 2012, up from $9.2 million at December 31, 2011, and up from $5.6 million at March 31, 2011. The increase was largely due to consumer delinquencies in residential first mortgage and home equity loans, which continue to be primarily on neighbor island properties. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $29.5 million at March 31, 2012 and was primarily comprised of residential mortgage loans with lowered monthly payments to accommodate the borrowers' financial needs for a period of time. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.
Net charge-offs during the first quarter of 2012 declined to $3.4 million or 0.24 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $7.8 million during the quarter were partially offset by recoveries of $4.4 million. Net charge-offs in the fourth quarter of 2011 were $7.0 million, or 0.51 percent annualized of total average loans and leases outstanding, and were comprised of $9.6 million in charge-offs partially offset by recoveries of $2.6 million. Net charge-offs during the first quarter of 2011 were $4.7 million, or 0.36 percent annualized of total average loans and leases outstanding, and were comprised of $7.4 million in charge-offs partially offset by recoveries of $2.7 million.
The allowance for loan and lease losses was $135.6 million at March 31, 2012, down $3.0 million from the allowance for loan and lease losses of $138.6 million at December 31, 2011 and down $11.8 million from the allowance for loan and lease losses of $147.4 million at March 31, 2011. The ratio of the allowance for loan and lease losses to total loans and leases was 2.42 percent at March 31, 2012, a decrease of 8 basis points from the previous quarter. The reserve for unfunded commitments at March 31, 2012 was unchanged at $5.4 million. Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.
Other Financial Highlights
Total assets were $13.76 billion at March 31, 2012, down from total assets of $13.85 billion at December 31, 2011, and up from total assets of $12.96 billion at March 31, 2011. Average total assets were $13.68 billion during the first quarter of 2012, up from $13.36 billion during the previous quarter and $12.97 billion during the same quarter last year.
Total loans and leases increased to $5.60 billion at March 31, 2012, up from $5.54 billion at December 31, 2011, and up from $5.33 billion at March 31, 2011. Average total loans and leases were $5.56 billion during the first quarter of 2012, up from $5.42 billion during the previous quarter, and up from $5.31 billion during the same quarter last year. Loan and lease portfolio balances, including the higher risk loans outstanding, are summarized in Table 10.
The securities portfolio was $7.25 billion at March 31, 2012, up from $7.11 billion at December 31, 2011 and up from $6.47 billion at March 31, 2011. The portfolio remains largely comprised of securities issued by U. S. government agencies. Funds sold decreased to $213.5 million at March 31, 2012 compared to $512.4 million at December 31, 2011 and $419.4 million at March 31, 2011.
Total deposits were $10.62 billion at March 31, 2012, up from $10.59 billion at December 31, 2011, and up from total deposits of $9.91 billion at March 31, 2011. Average total deposits were $10.43 billion in the first quarter of 2012, higher than average deposits of $10.16 billion during the previous quarter, and up from $9.87 billion during the first quarter last year.
During the first quarter of 2012, the Company repurchased 638.8 thousand shares of common stock at a total cost of $30.0 million under its share repurchase program. The average cost was $46.93 per share repurchased. From April 2 through April 20, 2012, the Company repurchased an additional 122.5 thousand shares of common stock at an average cost of $47.47 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through March 31, 2012, the Company has repurchased 49.2 million shares and returned nearly $1.8 billion to shareholders at an average cost of $36.12 per share. Remaining buyback authority under the share repurchase program was $44.0 million at March 31, 2012.
Total shareholders' equity was $995.9 million at March 31, 2012, compared to $1.0 billion at December 31, 2011 and $996.2 million at March 31, 2011. The ratio of tangible common equity to risk-weighted assets was 17.62 percent at the end of the first quarter of 2012, compared to 17.93 percent at year-end 2011, and 19.04 percent at the end of the same quarter last year. The Tier 1 leverage ratio at March 31, 2012 was 6.57 percent compared to 6.73 percent at December 31, 2011, and 7.16 percent at March 31, 2011.
The Company's Board of Directors declared a quarterly cash dividend of $0.45 per share on the Company's outstanding shares. The dividend will be payable on June 14, 2012 to shareholders of record at the close of business on May 31, 2012.
Hawaii Economy
Hawaii's economy was stable with continued improvement in certain aspects, particularly in tourism, during the first two months of 2012. For the first two months of 2012, total visitor arrivals increased by 6.7% and visitor spending increased by 11.4% compared to the same period in 2011. The increase in visitor spending was primarily due to strong spending growth by visitors from Japan and Canada. Hotel occupancy and revenue per available room also continued to improve. Overall, state job growth has begun to stabilize as the statewide seasonally adjusted unemployment rate was 6.4% as of March 2012, compared to 8.2% nationally. For the first three months of 2012, the volume of single-family home sales was slightly lower than the same period in 2011, while the median price of single family homes sold on Oahu was higher compared to the same period in 2011. Months of inventory continued to remain low at approximately 4 months as of March 31, 2012. More information on current Hawaii economic trends is presented in Table 15.
Conference Call Information
The Company will review its first quarter 2012 financial results today at 8:00 a.m. Hawaii Time. The conference call will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation's web site, www.boh.com. Conference call participants located in the United States should dial 800-599-9816. International participants should dial 617-847-8705. Use the pass code "Bank of Hawaii" to access the call. A replay will be available for one week beginning Monday, April 23, 2012 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the pass code number 76013334 when prompted. A replay will also be available via the Investor Relations link on the Company's web site.
Forward-Looking Statements
This news release, and other statements made by the Company in connection with it may contain "forward-looking statements", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2011, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.
Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers and governments in Hawaii, American Samoa and the West Pacific.The Company's principal subsidiary, Bank of Hawaii, was founded in 1897 and is the largest independent financial institution in Hawaii.For more information about Bank of Hawaii Corporation, see the Company's web site, www.boh.com.
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||
| Financial Highlights | Table 1a | |||||||||||
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| (dollars in thousands, except per share amounts) | 2012 | 2011 | 2011 | |||||||||
For the Period: | ||||||||||||
| Operating Results | ||||||||||||
| Net Interest Income | $ | 97,948 | $ | 96,246 | $ | 99,697 | ||||||
| Provision for Credit Losses | 351 | 2,219 | 4,691 | |||||||||
| Total Noninterest Income | 48,082 | 43,407 | 53,922 | |||||||||
| Total Noninterest Expense | 85,207 | 84,382 | 86,082 | |||||||||
| Net Income | 43,810 | 39,229 | 42,360 | |||||||||
| Basic Earnings Per Share | 0.96 | 0.85 | 0.89 | |||||||||
| Diluted Earnings Per Share | 0.95 | 0.85 | 0.88 | |||||||||
| Dividends Declared Per Share | 0.45 | 0.45 | 0.45 | |||||||||
| Performance Ratios | ||||||||||||
| Return on Average Assets | 1.29 | % | 1.17 | % | 1.32 | % | ||||||
| Return on Average Shareholders' Equity | 17.26 | 15.23 | 16.86 | |||||||||
| Efficiency Ratio 1 | 58.35 | 60.42 | 56.04 | |||||||||
| Net Interest Margin 2 | 3.06 | 3.04 | 3.24 | |||||||||
| Dividend Payout Ratio 3 | 46.88 | 52.94 | 50.56 | |||||||||
| Average Shareholders' Equity to Average Assets | 7.46 | 7.65 | 7.86 | |||||||||
| Average Balances | ||||||||||||
| Average Loans and Leases | $ | 5,563,358 | $ | 5,420,352 | $ | 5,311,781 | ||||||
| Average Assets | 13,681,229 | 13,357,646 | 12,965,633 | |||||||||
| Average Deposits | 10,430,215 | 10,160,392 | 9,873,727 | |||||||||
| Average Shareholders' Equity | 1,020,668 | 1,022,012 | 1,018,788 | |||||||||
| Market Price Per Share of Common Stock | ||||||||||||
| Closing | $ | 48.35 | $ | 44.49 | $ | 47.82 | ||||||
| High | 48.75 | 45.13 | 49.23 | |||||||||
| Low | 44.08 | 34.50 | 44.32 | |||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2012 | 2011 | 2011 | ||||||||||
As of Period End: | ||||||||||||
| Balance Sheet Totals | ||||||||||||
| Loans and Leases | $ | 5,598,932 | $ | 5,538,304 | $ | 5,326,929 | ||||||
| Total Assets | 13,759,409 | 13,846,391 | 12,962,304 | |||||||||
| Total Deposits | 10,621,170 | 10,592,623 | 9,912,391 | |||||||||
| Long-Term Debt | 30,687 | 30,696 | 32,643 | |||||||||
| Total Shareholders' Equity | 995,897 | 1,002,667 | 996,225 | |||||||||
| Asset Quality | ||||||||||||
| Allowance for Loan and Lease Losses | $ | 135,606 | $ | 138,606 | $ | 147,358 | ||||||
| Non-Performing Assets | 41,406 | 40,790 | 34,592 | |||||||||
| Financial Ratios | ||||||||||||
| Allowance to Loans and Leases Outstanding | 2.42 | % | 2.50 | % | 2.77 | % | ||||||
| Tier 1 Capital Ratio | 16.50 | 16.68 | 18.41 | |||||||||
| Total Capital Ratio | 17.76 | 17.95 | 19.68 | |||||||||
| Tier 1 Leverage Ratio | 6.57 | 6.73 | 7.16 | |||||||||
| Total Shareholders' Equity to Total Assets | 7.24 | 7.24 | 7.69 | |||||||||
| Tangible Common Equity to Tangible Assets 4 | 7.02 | 7.03 | 7.46 | |||||||||
| Tangible Common Equity to Risk-Weighted Assets 4 | 17.62 | 17.93 | 19.04 | |||||||||
| Non-Financial Data | ||||||||||||
| Full-Time Equivalent Employees | 2,318 | 2,370 | 2,381 | |||||||||
| Branches and Offices | 81 | 81 | 82 | |||||||||
| ATMs | 498 | 506 | 506 | |||||||||
| 1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income). | ||||||||||||
| 2 Net interest margin is defined as net interest income, on a taxable equivalent basis, as a percentage of average earning assets. | ||||||||||||
| 3 Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share. | ||||||||||||
4 Tangible common equity, a non-GAAP financial measure, is defined by the Company as shareholders' equity minus goodwill and intangible assets. Intangible assets are included as a component of other assets in the Consolidated Statements of Condition. | ||||||||||||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||
| Reconciliation of Non-GAAP Financial Measures | Table 1b | |||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| (dollars in thousands) | 2012 | 2011 | 2011 | |||||||||
| Total Shareholders' Equity | $ | 995,897 | $ | 1,002,667 | $ | 996,225 | ||||||
| Less: Goodwill | 31,517 | 31,517 | 31,517 | |||||||||
| Intangible Assets | 71 | 83 | 131 | |||||||||
| Tangible Common Equity | $ | 964,309 | $ | 971,067 | $ | 964,577 | ||||||
| Total Assets | $ | 13,759,409 | $ | 13,846,391 | $ | 12,962,304 | ||||||
| Less: Goodwill | 31,517 | 31,517 | 31,517 | |||||||||
| Intangible Assets | 71 | 83 | 131 | |||||||||
| Tangible Assets | $ | 13,727,821 | $ | 13,814,791 | $ | 12,930,656 | ||||||
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements | $ | 5,473,661 | $ | 5,414,481 | $ | 5,065,817 | ||||||
| Total Shareholders' Equity to Total Assets | 7.24 | % | 7.24 | % | 7.69 | % | ||||||
| Tangible Common Equity to Tangible Assets (Non-GAAP) | 7.02 | % | 7.03 | % | 7.46 | % | ||||||
| Tier 1 Capital Ratio | 16.50 | % | 16.68 | % | 18.41 | % | ||||||
| Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) | 17.62 | % | 17.93 | % | 19.04 | % | ||||||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||
| Net Significant Income (Expense) Items | Table 2 | |||||||||
| Three Months Ended | ||||||||||
| (dollars in thousands) | March 31, | December 31, | March 31, | |||||||
| Investment Securities Gains, Net | $ | - | $ | - | $ | 6,084 | ||||
| Gains (Losses) on Disposal of Leased Equipment | 2,473 | - | - | |||||||
| Decrease in Allowance for Loan and Lease Losses | 3,000 | 4,804 | - | |||||||
| PC Refresh | (1,163 | ) | - | - | ||||||
| Significant Income (Expense) Items Before the Provision (Benefit) for Income Taxes | 4,310 | 4,804 | 6,084 | |||||||
| Income Taxes Impact Related to Lease Transactions | (2,733 | ) | - | - | ||||||
| Income Tax Impact | 293 | 1,681 | 2,129 | |||||||
| Net Significant Income (Expense) Items | $ | 6,750 | $ | 3,123 | $ | 3,955 | ||||
| Bank of Hawaii Corporation and Subsidiaries | |||||||||||
| Consolidated Statements of Income | Table 3 | ||||||||||
| Three Months Ended | |||||||||||
| (dollars in thousands, except per share amounts) | March 31, | December 31, | March 31, | ||||||||
| Interest Income | |||||||||||
| Interest and Fees on Loans and Leases | $ | 64,691 | $ | 64,760 | $ | 66,593 | |||||
| Income on Investment Securities | |||||||||||
| Available-for-Sale | 17,713 | 19,107 | 37,669 | ||||||||
| Held-to-Maturity | 26,413 | 23,608 | 7,633 | ||||||||
| Deposits | 2 | 2 | (2 | ) | |||||||
| Funds Sold | 129 | 120 | 251 | ||||||||
| Other | 280 | 280 | 279 | ||||||||
| Total Interest Income | 109,228 | 107,877 | 112,423 | ||||||||
| Interest Expense | |||||||||||
| Deposits | 3,473 | 3,736 | 5,232 | ||||||||
| Securities Sold Under Agreements to Repurchase | 7,304 | 7,392 | 7,041 | ||||||||
| Funds Purchased | 5 | 5 | 6 | ||||||||
| Long-Term Debt | 498 | 498 | 447 | ||||||||
| Total Interest Expense | 11,280 | 11,631 | 12,726 | ||||||||
| Net Interest Income | 97,948 | 96,246 | 99,697 | ||||||||
| Provision for Credit Losses | 351 | 2,219 | 4,691 | ||||||||
| Net Interest Income After Provision for Credit Losses | 97,597 | 94,027 | 95,006 | ||||||||
| Noninterest Income | |||||||||||
| Trust and Asset Management | 10,918 | 11,025 | 11,806 | ||||||||
| Mortgage Banking | 5,050 | 3,401 | 3,122 | ||||||||
| Service Charges on Deposit Accounts | 9,591 | 9,606 | 9,932 | ||||||||
| Fees, Exchange, and Other Service Charges | 12,399 | 12,401 | 14,945 | ||||||||
| Investment Securities Gains (Losses), Net | (90 | ) | 282 | 6,084 | |||||||
| Insurance | 2,278 | 2,312 | 2,771 | ||||||||
| Other | 7,936 | 4,380 | 5,262 | ||||||||
| Total Noninterest Income | 48,082 | 43,407 | 53,922 | ||||||||
| Noninterest Expense | |||||||||||
| Salaries and Benefits | 47,024 | 44,927 | 46,782 | ||||||||
| Net Occupancy | 10,516 | 11,253 | 10,327 | ||||||||
| Net Equipment | 5,826 | 4,748 | 4,698 | ||||||||
| Professional Fees | 2,132 | 1,926 | 2,158 | ||||||||
| FDIC Insurance | 2,071 | 2,027 | 3,244 | ||||||||
| Other | 17,638 | 19,501 | 18,873 | ||||||||
| Total Noninterest Expense | 85,207 | 84,382 | 86,082 | ||||||||
| Income Before Provision for Income Taxes | 60,472 | 53,052 | 62,846 | ||||||||
| Provision for Income Taxes | 16,662 | 13,823 | 20,486 | ||||||||
| Net Income | $ | 43,810 | $ | 39,229 | $ | 42,360 | |||||
| Basic Earnings Per Share | $ | 0.96 | $ | 0.85 | $ | 0.89 | |||||
| Diluted Earnings Per Share | $ | 0.95 | $ | 0.85 | $ | 0.88 | |||||
| Dividends Declared Per Share | $ | 0.45 | $ | 0.45 | $ | 0.45 | |||||
| Basic Weighted Average Shares | 45,709,936 | 46,195,147 | 47,851,612 | ||||||||
| Diluted Weighted Average Shares | 45,875,238 | 46,324,734 | 48,074,656 | ||||||||
| Bank of Hawaii Corporation and Subsidiaries | |||||||||||||
| Consolidated Statements of Comprehensive Income | Table 4 | ||||||||||||
| Three Months Ended | |||||||||||||
| (dollars in thousands) | March 31, | December 31, | March 31, | ||||||||||
| Net Income | $ | 43,810 | $ | 39,229 | $ | 42,360 | |||||||
| Other Comprehensive Income, Net of Tax: | |||||||||||||
| Net Unrealized Losses on Investment Securities | (6,454 | ) | (1,965 | ) | (19,500 | ) | |||||||
| Defined Benefit Plans | 153 | (9,526 | ) | 471 | |||||||||
| Other Comprehensive Income | (6,301 | ) | (11,491 | ) | (19,029 | ) | |||||||
| Comprehensive Income | $ | 37,509 | $ | 27,738 | $ | 23,331 | |||||||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||
| Consolidated Statements of Condition | Table 5 | |||||||||||
| (dollars in thousands) | March 31, | December 31, | March 31, | |||||||||
| Assets | ||||||||||||
| Interest-Bearing Deposits | $ | 3,333 | $ | 3,036 | $ | 5,394 | ||||||
| Funds Sold | 213,458 | 512,384 | 419,379 | |||||||||
| Investment Securities | ||||||||||||
| Available-for-Sale | 3,469,260 | 3,451,885 | 4,045,096 | |||||||||
| Held-to-Maturity (Fair Value of $3,877,269; $3,754,206; and $2,437,803) | 3,779,272 | 3,657,796 | 2,426,710 | |||||||||
| Loans Held for Sale | 10,655 | 18,957 | 16,160 | |||||||||
| Loans and Leases | 5,598,932 | 5,538,304 | 5,326,929 | |||||||||
| Allowance for Loan and Lease Losses | (135,606 | ) | (138,606 | ) | (147,358 | ) | ||||||
| Net Loans and Leases | 5,463,326 | 5,399,698 | 5,179,571 | |||||||||
| Total Earning Assets | 12,939,304 | 13,043,756 | 12,092,310 | |||||||||
| Cash and Noninterest-Bearing Deposits | 154,100 | 154,489 | 223,068 | |||||||||
| Premises and Equipment | 106,543 | 103,550 | 106,729 | |||||||||
| Customers' Acceptances | 117 | 476 | 779 | |||||||||
| Accrued Interest Receivable | 48,032 | 43,510 | 41,309 | |||||||||
| Foreclosed Real Estate | 3,530 | 3,042 | 2,793 | |||||||||
| Mortgage Servicing Rights | 23,915 | 24,279 | 25,919 | |||||||||
| Goodwill | 31,517 | 31,517 | 31,517 | |||||||||
| Other Assets | 452,351 | 441,772 | 437,880 | |||||||||
| Total Assets | $ | 13,759,409 | $ | 13,846,391 | $ | 12,962,304 | ||||||
| Liabilities | ||||||||||||
| Deposits | ||||||||||||
| Noninterest-Bearing Demand | $ | 2,964,372 | $ | 2,850,923 | $ | 2,568,942 | ||||||
| Interest-Bearing Demand | 1,964,487 | 2,005,983 | 1,811,705 | |||||||||
| Savings | 4,440,674 | 4,398,638 | 4,515,921 | |||||||||
| Time | 1,251,637 | 1,337,079 | 1,015,823 | |||||||||
| Total Deposits | 10,621,170 | 10,592,623 | 9,912,391 | |||||||||
| Funds Purchased | 11,024 | 10,791 | 9,478 | |||||||||
| Short-Term Borrowings | - | - | 6,900 | |||||||||
| Securities Sold Under Agreements to Repurchase | 1,825,646 | 1,925,998 | 1,745,083 | |||||||||
| Long-Term Debt | 30,687 | 30,696 | 32,643 | |||||||||
| Banker's Acceptances | 117 | 476 | 779 | |||||||||
| Retirement Benefits Payable | 41,862 | 46,949 | 30,707 | |||||||||
| Accrued Interest Payable | 6,318 | 5,330 | 6,605 | |||||||||
| Taxes Payable and Deferred Taxes | 104,259 | 95,840 | 124,774 | |||||||||
| Other Liabilities | 122,429 | 135,021 | 96,719 | |||||||||
| Total Liabilities | 12,763,512 | 12,843,724 | 11,966,079 | |||||||||
| Shareholders' Equity | ||||||||||||
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: March 31, 2012 - 57,290,145 / 45,605,881; December 31, 2011 - 57,134,470 / 45,947,116; and March 31, 2011 - 57,120,240 / 47,760,878) | 571 | 571 | 570 | |||||||||
| Capital Surplus | 509,860 | 507,558 | 502,029 | |||||||||
| Accumulated Other Comprehensive Income | 28,962 | 35,263 | 7,936 | |||||||||
| Retained Earnings | 1,024,736 | 1,003,938 | 951,817 | |||||||||
Treasury Stock, at Cost (Shares: March 31, 2012 - 11,684,264; December 31, 2011 - 11,187,354; and March 31, 2011 - 9,359,362) | (568,232 | ) | (544,663 | ) | (466,127 | ) | ||||||
| Total Shareholders' Equity | 995,897 | 1,002,667 | 996,225 | |||||||||
| Total Liabilities and Shareholders' Equity | $ | 13,759,409 | $ | 13,846,391 | $ | 12,962,304 | ||||||
| Bank of Hawaii Corporation and Subsidiaries | |||||||||||||||||||||||||
| Consolidated Statements of Shareholders' Equity | Table 6 | ||||||||||||||||||||||||
| (dollars in thousands) | Common | Common | Capital | Accum. | Retained | Treasury | Total | ||||||||||||||||||
| Balance as of December 31, 2011 | 45,947,116 | $ | 571 | $ | 507,558 | $ | 35,263 | $ | 1,003,938 | $ | (544,663 | ) | $ | 1,002,667 | |||||||||||
| Net Income | - | - | - | - | 43,810 | - | 43,810 | ||||||||||||||||||
| Other Comprehensive Income | - | - | - | (6,301 | ) | - | - | (6,301 | ) | ||||||||||||||||
| Share-Based Compensation | - | - | 1,831 | - | - | - | 1,831 | ||||||||||||||||||
| Common Stock Issued under Purchase and Equity | |||||||||||||||||||||||||
Compensation Plans and Related Tax Benefits | 326,174 | - | 471 | - | (2,317 | ) | 7,735 | 5,889 | |||||||||||||||||
| Common Stock Repurchased | (667,409 | ) | - | - | - | - | (31,304 | ) | (31,304 | ) | |||||||||||||||
| Cash Dividends Paid ($0.45 per share) | - | - | - | - | (20,695 | ) | - | (20,695 | ) | ||||||||||||||||
| Balance as of March 31, 2012 | 45,605,881 | $ | 571 | $ | 509,860 | $ | 28,962 | $ | 1,024,736 | $ | (568,232 | ) | $ | 995,897 | |||||||||||
| Balance as of December 31, 2010 | 48,097,672 | $ | 570 | $ | 500,888 | $ | 26,965 | $ | 932,629 | $ | (449,919 | ) | $ | 1,011,133 | |||||||||||
| Net Income | - | - | - | - | 42,360 | - | 42,360 | ||||||||||||||||||
| Other Comprehensive Income | - | - | - | (19,029 | ) | - | - | (19,029 | ) | ||||||||||||||||
| Share-Based Compensation | - | - | 744 | - | - | - | 744 | ||||||||||||||||||
| Common Stock Issued under Purchase and Equity | |||||||||||||||||||||||||
| Compensation Plans and Related Tax Benefits | 130,609 | - | 397 | - | (1,588 | ) | 5,721 | 4,530 | |||||||||||||||||
| Common Stock Repurchased | (467,403 | ) | - | - | - | - | (21,929 | ) | (21,929 | ) | |||||||||||||||
| Cash Dividends Paid ($0.45 per share) | - | - | - | - | (21,584 | ) | - | (21,584 | ) | ||||||||||||||||
| Balance as of March 31, 2011 | 47,760,878 | $ | 570 | $ | 502,029 | $ | 7,936 | $ | 951,817 | $ | (466,127 | ) | $ | 996,225 | |||||||||||
| Bank of Hawaii Corporation and Subsidiaries | |||||||||||||||||||||||||||||
| Average Balances and Interest Rates - Taxable Equivalent Basis | Table 7 | ||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||
| March 31, 2012 | December 31, 2011 | March 31, 2011 | |||||||||||||||||||||||||||
(dollars in millions) | Average | Income/ | Yield/ | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | ||||||||||||||||||||
| Earning Assets | |||||||||||||||||||||||||||||
| Interest-Bearing Deposits | $ | 3.2 | $ | - | 0.25 | % | $ | 3.9 | $ | - | 0.23 | % | $ | 4.0 | $ | - | (0.16 | ) | % | ||||||||||
| Funds Sold | 262.4 | 0.1 | 0.19 | 239.0 | 0.1 | 0.20 | 457.2 | 0.3 | 0.22 | ||||||||||||||||||||
| Investment Securities | |||||||||||||||||||||||||||||
| Available-for-Sale | 3,451.6 | 19.7 | 2.28 | 3,763.7 | 19.9 | 2.12 | 5,646.9 | 38.0 | 2.70 | ||||||||||||||||||||
| Held-to-Maturity | 3,737.3 | 26.4 | 2.83 | 3,259.8 | 23.6 | 2.90 | 901.0 | 7.6 | 3.39 | ||||||||||||||||||||
| Loans Held for Sale | 12.0 | 0.1 | 4.22 | 14.7 | 0.2 | 4.73 | 8.5 | 0.1 | 5.65 | ||||||||||||||||||||
| Loans and Leases 1 | |||||||||||||||||||||||||||||
| Commercial and Industrial | 805.9 | 8.1 | 4.03 | 798.3 | 8.0 | 3.99 | 775.8 | 7.9 | 4.11 | ||||||||||||||||||||
| Commercial Mortgage | 941.6 | 10.5 | 4.50 | 929.0 | 10.9 | 4.66 | 851.2 | 10.3 | 4.93 | ||||||||||||||||||||
| Construction | 103.5 | 1.4 | 5.34 | 85.7 | 1.1 | 4.84 | 80.6 | 1.0 | 5.05 | ||||||||||||||||||||
| Commercial Lease Financing | 294.3 | 1.7 | 2.33 | 311.0 | 2.1 | 2.68 | 333.6 | 2.3 | 2.75 | ||||||||||||||||||||
| Residential Mortgage | 2,264.4 | 27.7 | 4.90 | 2,163.1 | 27.3 | 5.05 | 2,100.6 | 28.6 | 5.44 | ||||||||||||||||||||
| Home Equity | 778.9 | 8.6 | 4.43 | 778.1 | 9.0 | 4.57 | 796.0 | 9.6 | 4.91 | ||||||||||||||||||||
| Automobile | 193.1 | 3.0 | 6.20 | 190.7 | 3.1 | 6.40 | 203.1 | 3.6 | 7.14 | ||||||||||||||||||||
| Other 2 | 181.6 | 3.7 | 8.08 | 164.5 | 3.2 | 7.76 | 170.9 | 3.2 | 7.53 | ||||||||||||||||||||
| Total Loans and Leases | 5,563.3 | 64.7 | 4.66 | 5,420.4 | 64.7 | 4.75 | 5,311.8 | 66.5 | 5.04 | ||||||||||||||||||||
| Other | 79.9 | 0.3 | 1.40 | 79.9 | 0.3 | 1.40 | 79.9 | 0.3 | 1.40 | ||||||||||||||||||||
| Total Earning Assets 3 | 13,109.7 | 111.3 | 3.40 | 12,781.4 | 108.8 | 3.40 | 12,409.3 | 112.8 | 3.65 | ||||||||||||||||||||
| Cash and Noninterest-Bearing Deposits | 137.2 | 142.2 | 134.5 | ||||||||||||||||||||||||||
| Other Assets | 434.3 | 434.0 | 421.8 | ||||||||||||||||||||||||||
| Total Assets | $ | 13,681.2 | $ | 13,357.6 | $ | 12,965.6 | |||||||||||||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||||||||||||||
| Interest-Bearing Deposits | |||||||||||||||||||||||||||||
| Demand | $ | 1,867.1 | 0.1 | 0.02 | $ | 1,799.9 | 0.1 | 0.03 | $ | 1,805.0 | 0.2 | 0.04 | |||||||||||||||||
| Savings | 4,439.0 | 1.3 | 0.12 | 4,447.8 | 1.4 | 0.13 | 4,536.9 | 2.2 | 0.20 | ||||||||||||||||||||
| Time | 1,260.2 | 2.1 | 0.66 | 1,145.4 | 2.2 | 0.76 | 1,045.9 | 2.8 | 1.10 | ||||||||||||||||||||
| Total Interest-Bearing Deposits | 7,566.3 | 3.5 | 0.18 | 7,393.1 | 3.7 | 0.20 | 7,387.8 | 5.2 | 0.29 | ||||||||||||||||||||
| Short-Term Borrowings | 15.7 | - | 0.12 | 20.4 | - | 0.08 | 17.1 | - | 0.13 | ||||||||||||||||||||
| Securities Sold Under Agreements to Repurchase | 1,916.0 | 7.3 | 1.51 | 1,848.9 | 7.4 | 1.57 | 1,761.2 | 7.1 | 1.60 | ||||||||||||||||||||
| Long-Term Debt | 30.7 | 0.5 | 6.49 | 30.7 | 0.5 | 6.49 | 32.7 | 0.4 | 5.48 | ||||||||||||||||||||
| Total Interest-Bearing Liabilities | 9,528.7 | 11.3 | 0.47 | 9,293.1 | 11.6 | 0.49 | 9,198.8 | 12.7 | 0.56 | ||||||||||||||||||||
| Net Interest Income | $ | 100.0 | $ | 97.2 | $ | 100.1 | |||||||||||||||||||||||
| Interest Rate Spread | 2.93 | % | 2.91 | % | 3.09 | % | |||||||||||||||||||||||
| Net Interest Margin | 3.06 | % | 3.04 | % | 3.24 | % | |||||||||||||||||||||||
| Noninterest-Bearing Demand Deposits | 2,864.0 | 2,767.3 | 2,485.8 | ||||||||||||||||||||||||||
| Other Liabilities | 267.8 | 275.2 | 262.2 | ||||||||||||||||||||||||||
| Shareholders' Equity | 1,020.7 | 1,022.0 | 1,018.8 | ||||||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 13,681.2 | $ | 13,357.6 | $ | 12,965.6 | |||||||||||||||||||||||
| 1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. | |||||||||||||||||||||||||||||
| 2 Comprised of other consumer revolving credit, installment, and consumer lease financing. | |||||||||||||||||||||||||||||
3 Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $2,070,000, $938,000, and $383,000 for the three months ended March 31, 2012, December 31, 2011, and March 31, 2011, respectively. | |||||||||||||||||||||||||||||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||
| Analysis of Change in Net Interest Income - Taxable Equivalent Basis | Table 8a | |||||||||||
| Three Months Ended March 31, 2012 | ||||||||||||
| Compared to December 31, 2011 | ||||||||||||
| (dollars in millions) | Volume 1 | Rate 1 | Total | |||||||||
| Change in Interest Income: | ||||||||||||
| Investment Securities | ||||||||||||
| Available-for-Sale | $ | (1.7 | ) | $ | 1.5 | $ | (0.2 | ) | ||||
| Held-to-Maturity | 3.4 | (0.6 | ) | 2.8 | ||||||||
| Loans Held for Sale | (0.1 | ) | - | (0.1 | ) | |||||||
| Loans and Leases | ||||||||||||
| Commercial and Industrial | - | 0.1 | 0.1 | |||||||||
| Commercial Mortgage | 0.1 | (0.5 | ) | (0.4 | ) | |||||||
| Construction | 0.2 | 0.1 | 0.3 | |||||||||
| Commercial Lease Financing | (0.1 | ) | (0.3 | ) | (0.4 | ) | ||||||
| Residential Mortgage | 1.2 | (0.8 | ) | 0.4 | ||||||||
| Home Equity | - | (0.4 | ) | (0.4 | ) | |||||||
| Automobile | - | (0.1 | ) | (0.1 | ) | |||||||
| Other 2 | 0.4 | 0.1 | 0.5 | |||||||||
| Total Loans and Leases | 1.8 | (1.8 | ) | - | ||||||||
| Total Change in Interest Income | 3.4 | (0.9 | ) | 2.5 | ||||||||
| Change in Interest Expense: | ||||||||||||
| Interest-Bearing Deposits | ||||||||||||
| Savings | - | (0.1 | ) | (0.1 | ) | |||||||
| Time | 0.2 | (0.3 | ) | (0.1 | ) | |||||||
| Total Interest-Bearing Deposits | 0.2 | (0.4 | ) | (0.2 | ) | |||||||
| Securities Sold Under Agreements to Repurchase | 0.2 | (0.3 | ) | (0.1 | ) | |||||||
| Total Change in Interest Expense | 0.4 | (0.7 | ) | (0.3 | ) | |||||||
| Change in Net Interest Income | $ | 3.0 | $ | (0.2 | ) | $ | 2.8 | |||||
| 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 Hawaii Corporation and Subsidiaries | ||||||||||||
| Analysis of Change in Net Interest Income - Taxable Equivalent Basis | Table 8b | |||||||||||
| Three Months Ended March 31, 2012 | ||||||||||||
| Compared to March 31, 2011 | ||||||||||||
| (dollars in millions) | Volume 1 | Rate 1 | Total | |||||||||
| Change in Interest Income: | ||||||||||||
| Funds Sold | $ | (0.1 | ) | $ | (0.1 | ) | $ | (0.2 | ) | |||
| Investment Securities | ||||||||||||
| Available-for-Sale | (13.1 | ) | (5.2 | ) | (18.3 | ) | ||||||
| Held-to-Maturity | 20.3 | (1.5 | ) | 18.8 | ||||||||
| Loans and Leases | ||||||||||||
| Commercial and Industrial | 0.3 | (0.1 | ) | 0.2 | ||||||||
| Commercial Mortgage | 1.1 | (0.9 | ) | 0.2 | ||||||||
| Construction | 0.3 | 0.1 | 0.4 | |||||||||
| Commercial Lease Financing | (0.3 | ) | (0.3 | ) | (0.6 | ) | ||||||
| Residential Mortgage | 2.1 | (3.0 | ) | (0.9 | ) | |||||||
| Home Equity | (0.1 | ) | (0.9 | ) | (1.0 | ) | ||||||
| Automobile | (0.2 | ) | (0.4 | ) | (0.6 | ) | ||||||
| Other 2 | 0.2 | 0.3 | 0.5 | |||||||||
| Total Loans and Leases | 3.4 | (5.2 | ) | (1.8 | ) | |||||||
| Total Change in Interest Income | 10.5 | (12.0 | ) | (1.5 | ) | |||||||
| Change in Interest Expense: | ||||||||||||
| Interest-Bearing Deposits | ||||||||||||
| Demand | - | (0.1 | ) | (0.1 | ) | |||||||
| Savings | - | (0.9 | ) | (0.9 | ) | |||||||
| Time | 0.5 | (1.2 | ) | (0.7 | ) | |||||||
| Total Interest-Bearing Deposits | 0.5 | (2.2 | ) | (1.7 | ) | |||||||
| Securities Sold Under Agreements to Repurchase | 0.6 | (0.4 | ) | 0.2 | ||||||||
| Long-Term Debt | - | 0.1 | 0.1 | |||||||||
| Total Change in Interest Expense | 1.1 | (2.5 | ) | (1.4 | ) | |||||||
| Change in Net Interest Income | $ | 9.4 | $ | (9.5 | ) | $ | (0.1 | ) | ||||
| 1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. | ||||||||||||
2 Comprised of other consumer revolving credit, installment, and consumer lease financing. | ||||||||||||
| Bank of Hawaii Corporation and Subsidiaries | |||||||||
| Salaries and Benefits | Table 9 | ||||||||
| Three Months Ended | |||||||||
| (dollars in thousands) | March 31, | December 31, | March 31, | ||||||
| Salaries | $ | 28,687 | $ | 28,330 | $ | 29,075 | |||
| Incentive Compensation | 4,054 | 3,881 | 3,466 | ||||||
| Share-Based Compensation and Cash Grants for the Purchase of Company Stock | 1,685 | 1,819 | 675 | ||||||
| Commission Expense | 1,536 | 1,701 | 1,663 | ||||||
| Retirement and Other Benefits | 4,390 | 4,429 | 4,962 | ||||||
| Payroll Taxes | 3,818 | 2,030 | 4,039 | ||||||
| Medical, Dental, and Life Insurance | 2,437 | 2,322 | 2,223 | ||||||
| Separation Expense | 417 | 415 | 679 | ||||||
| Total Salaries and Benefits | $ | 47,024 | $ | 44,927 | $ | 46,782 | |||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||||||
| Loan and Lease Portfolio Balances | Table 10 | |||||||||||||||
| (dollars in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||
| Commercial | ||||||||||||||||
| Commercial and Industrial | $ | 788,718 | $ | 817,170 | $ | 790,294 | $ | 815,912 | $ | 771,923 | ||||||
| Commercial Mortgage | 948,196 | 938,250 | 922,075 | 872,283 | 883,360 | |||||||||||
| Construction | 110,184 | 98,669 | 69,635 | 81,432 | 80,360 | |||||||||||
| Lease Financing | 285,860 | 311,928 | 312,159 | 316,776 | 331,491 | |||||||||||
| Total Commercial | 2,132,958 | 2,166,017 | 2,094,163 | 2,086,403 | 2,067,134 | |||||||||||
| Consumer | ||||||||||||||||
| Residential Mortgage | 2,319,485 | 2,215,892 | 2,130,589 | 2,130,335 | 2,108,376 | |||||||||||
| Home Equity | 773,643 | 780,691 | 775,105 | 783,582 | 787,179 | |||||||||||
| Automobile | 193,851 | 192,506 | 191,497 | 191,739 | 196,649 | |||||||||||
| Other 1 | 178,995 | 183,198 | 157,118 | 159,414 | 167,591 | |||||||||||
| Total Consumer | 3,465,974 | 3,372,287 | 3,254,309 | 3,265,070 | 3,259,795 | |||||||||||
| Total Loans and Leases | $ | 5,598,932 | $ | 5,538,304 | $ | 5,348,472 | $ | 5,351,473 | $ | 5,326,929 | ||||||
| Higher Risk Loans Outstanding | ||||||||||||||||
| (dollars in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||
| Residential Home Building 2 | $ | 13,148 | $ | 13,475 | $ | 15,379 | $ | 16,186 | $ | 14,744 | ||||||
| Residential Land Loans 3 | 17,602 | 18,163 | 18,305 | 19,960 | 21,595 | |||||||||||
| Home Equity Loans 4 | 21,359 | 21,413 | 22,321 | 21,778 | 23,783 | |||||||||||
| Air Transportation 5 | 27,548 | 36,144 | 36,511 | 36,961 | 37,440 | |||||||||||
| Total Higher Risk Loans | $ | 79,657 | $ | 89,195 | $ | 92,516 | $ | 94,885 | $ | 97,562 | ||||||
| 1 Comprised of other revolving credit, installment, and lease financing. | ||||||||||||||||
2 Residential home building loans were $54.4 million as of March 31, 2012. Higher risk loans within this segment are defined as those loans with a well-defined weakness or weaknesses that jeopardizes the orderly repayment of the loan. | ||||||||||||||||
| 3 We consider all of our residential land loans, which are consumer loans secured by unimproved lots, to be of higher risk due to the volatility in the value of the underlying collateral. | ||||||||||||||||
| 4 Higher risk home equity loans are defined as those loans originated in 2005 or later, with current monitoring credit scores below 600, and with original loan-to-value ratios greater than 70%. | ||||||||||||||||
| 5 We consider all of our air transportation leases to be of higher risk due to the weak financial profile of the industry. | ||||||||||||||||
| Deposits | ||||||||||||||||
| (dollars in thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
| Consumer | $ | 5,377,804 | $ | 5,241,827 | $ | 5,137,548 | $ | 5,073,101 | $ | 5,097,056 | ||||||
| Commercial | 4,307,931 | 4,320,712 | 4,275,915 | 4,165,435 | 4,326,495 | |||||||||||
| Public and Other | 935,435 | 1,030,084 | 595,550 | 740,498 | 488,840 | |||||||||||
| Total Deposits | $ | 10,621,170 | $ | 10,592,623 | $ | 10,009,013 | $ | 9,979,034 | $ | 9,912,391 | ||||||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||||||||||||
| Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More | Table 11 | |||||||||||||||||||||
| (dollars in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||||||||
| Non-Performing Assets 1 | ||||||||||||||||||||||
| Non-Accrual Loans and Leases | ||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||
| Commercial and Industrial | $ | 5,852 | $ | 6,243 | $ | 6,593 | $ | 1,839 | $ | 1,107 | ||||||||||||
| Commercial Mortgage | 2,113 | 2,140 | 2,188 | 3,290 | 3,421 | |||||||||||||||||
| Construction | 1,482 | 2,080 | - | 288 | 288 | |||||||||||||||||
| Lease Financing | 4 | 5 | 6 | 8 | 9 | |||||||||||||||||
| Total Commercial | 9,451 | 10,468 | 8,787 | 5,425 | 4,825 | |||||||||||||||||
| Consumer | ||||||||||||||||||||||
| Residential Mortgage | 26,356 | 25,256 | 23,779 | 23,970 | 24,372 | |||||||||||||||||
| Home Equity | 2,069 | 2,024 | 1,863 | 2,155 | 2,602 | |||||||||||||||||
| Other 2 | - | - | - | 16 | - | |||||||||||||||||
| Total Consumer | 28,425 | 27,280 | 25,642 | 26,141 | 26,974 | |||||||||||||||||
| Total Non-Accrual Loans and Leases | 37,876 | 37,748 | 34,429 | 31,566 | 31,799 | |||||||||||||||||
| Foreclosed Real Estate | 3,530 | 3,042 | 3,341 | 2,590 | 2,793 | |||||||||||||||||
| Total Non-Performing Assets | $ | 41,406 | $ | 40,790 | $ | 37,770 | $ | 34,156 | $ | 34,592 | ||||||||||||
| Accruing Loans and Leases Past Due 90 Days or More | ||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||
| Commercial and Industrial | $ | 2 | $ | 1 | $ | - | $ | - | $ | - | ||||||||||||
| Total Commercial | 2 | 1 | - | - | - | |||||||||||||||||
| Consumer | ||||||||||||||||||||||
| Residential Mortgage | 6,590 | 6,422 | 7,664 | 5,854 | 3,614 | |||||||||||||||||
| Home Equity | 2,829 | 2,194 | 2,639 | 1,147 | 1,100 | |||||||||||||||||
| Automobile | 124 | 170 | 138 | 167 | 260 | |||||||||||||||||
| Other 2 | 543 | 435 | 414 | 604 | 578 | |||||||||||||||||
| Total Consumer | 10,086 | 9,221 | 10,855 | 7,772 | 5,552 | |||||||||||||||||
| Total Accruing Loans and Leases Past Due 90 Days or More | $ | 10,088 | $ | 9,222 | $ | 10,855 | $ | 7,772 | $ | 5,552 | ||||||||||||
Restructured Loans on Accrual Status and Not Past Due 90 Days or More | $ | 29,539 | $ | 33,703 | $ | 33,140 | $ | 28,193 | $ | 29,513 | ||||||||||||
| Total Loans and Leases | $ | 5,598,932 | $ | 5,538,304 | $ | 5,348,472 | $ | 5,351,473 | $ | 5,326,929 | ||||||||||||
| Ratio of Non-Accrual Loans and Leases to Total Loans and Leases | 0.68 | % | 0.68 | % | 0.64 | % | 0.59 | % | 0.60 | % | ||||||||||||
Ratio of Non-Performing Assets to Total Loans and Leases, Loans Held for Sale, and Foreclosed Real Estate | 0.74 | % | 0.73 | % | 0.70 | % | 0.64 | % | 0.65 | % | ||||||||||||
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases, Commercial Loans Held for Sale, and Commercial Foreclosed Real Estate | 0.53 | % | 0.56 | % | 0.52 | % | 0.34 | % | 0.31 | % | ||||||||||||
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate | 0.87 | % | 0.85 | % | 0.82 | % | 0.83 | % | 0.86 | % | ||||||||||||
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases, Loans Held for Sale, and Foreclosed Real Estate | 0.92 | % | 0.90 | % | 0.91 | % | 0.78 | % | 0.75 | % | ||||||||||||
| Quarter to Quarter Changes in Non-Performing Assets1 | ||||||||||||||||||||||
| Balance at Beginning of Quarter | $ | 40,790 | $ | 37,770 | $ | 34,156 | $ | 34,592 | $ | 37,786 | ||||||||||||
| Additions | 5,334 | 8,653 | 8,552 | 6,079 | 5,591 | |||||||||||||||||
| Reductions | ||||||||||||||||||||||
| Payments | (2,524 | ) | (1,173 | ) | (3,237 | ) | (2,363 | ) | (2,164 | ) | ||||||||||||
| Return to Accrual Status | (535 | ) | (2,421 | ) | (401 | ) | (3,226 | ) | (6,408 | ) | ||||||||||||
| Sales of Foreclosed Real Estate | (1,049 | ) | (1,320 | ) | (157 | ) | (497 | ) | - | |||||||||||||
| Charge-offs/Write-downs | (610 | ) | (719 | ) | (1,143 | ) | (429 | ) | (213 | ) | ||||||||||||
| Total Reductions | (4,718 | ) | (5,633 | ) | (4,938 | ) | (6,515 | ) | (8,785 | ) | ||||||||||||
| Balance at End of Quarter | $ | 41,406 | $ | 40,790 | $ | 37,770 | $ | 34,156 | $ | 34,592 | ||||||||||||
1 Excluded from non-performing assets was a contractually binding non-accrual loan held for sale of $7.5 million as of March 31, 2011. | ||||||||||||||||||||||
| 2 Comprised of other revolving credit, installment, and lease financing. | ||||||||||||||||||||||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||||
| Reserve for Credit Losses | Table 12 | |||||||||||||
| Three Months Ended | ||||||||||||||
| (dollars in thousands) | March 31, 2012 | December 31, 2011 | March 31, 2011 | |||||||||||
| Balance at Beginning of Period | $ | 144,025 | $ | 148,829 | $ | 152,777 | ||||||||
| Loans and Leases Charged-Off | ||||||||||||||
| Commercial | ||||||||||||||
| Commercial and Industrial | (1,431 | ) | (733 | ) | (1,657 | ) | ||||||||
| Construction | (330 | ) | - | - | ||||||||||
| Consumer | ||||||||||||||
| Residential Mortgage | (1,580 | ) | (2,888 | ) | (1,751 | ) | ||||||||
| Home Equity | (2,441 | ) | (3,714 | ) | (1,359 | ) | ||||||||
| Automobile | (526 | ) | (688 | ) | (1,029 | ) | ||||||||
| Other 1 | (1,451 | ) | (1,585 | ) | (1,564 | ) | ||||||||
| Total Loans and Leases Charged-Off | (7,759 | ) | (9,608 | ) | (7,360 | ) | ||||||||
| Recoveries on Loans and Leases Previously Charged-Off | ||||||||||||||
| Commercial | ||||||||||||||
| Commercial and Industrial | 1,933 | 469 | 572 | |||||||||||
| Commercial Mortgage | 24 | 8 | - | |||||||||||
| Lease Financing | 72 | 29 | 50 | |||||||||||
| Consumer | ||||||||||||||
| Residential Mortgage | 666 | 531 | 259 | |||||||||||
| Home Equity | 570 | 469 | 339 | |||||||||||
| Automobile | 538 | 528 | 649 | |||||||||||
| Other 1 | 605 | 551 | 800 | |||||||||||
| Total Recoveries on Loans and Leases Previously Charged-Off | 4,408 | 2,585 | 2,669 | |||||||||||
| Net Loans and Leases Charged-Off | (3,351 | ) | (7,023 | ) | (4,691 | ) | ||||||||
| Provision for Credit Losses | 351 | 2,219 | 4,691 | |||||||||||
| Balance at End of Period 2 | $ | 141,025 | $ | 144,025 | $ | 152,777 | ||||||||
| Components | ||||||||||||||
| Allowance for Loan and Lease Losses | $ | 135,606 | $ | 138,606 | $ | 147,358 | ||||||||
| Reserve for Unfunded Commitments | 5,419 | 5,419 | 5,419 | |||||||||||
| Total Reserve for Credit Losses | $ | 141,025 | $ | 144,025 | $ | 152,777 | ||||||||
| Average Loans and Leases Outstanding | $ | 5,563,358 | $ | 5,420,352 | $ | 5,311,781 | ||||||||
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized) | 0.24 | % | 0.51 | % | 0.36 | % | ||||||||
| Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding | 2.42 | % | 2.50 | % | 2.77 | % | ||||||||
| 1 Comprised of other revolving credit, installment, and lease financing. | ||||||||||||||
2 Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition. | ||||||||||||||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||||||||||
| Business Segments Selected Financial Information | Table 13 | |||||||||||||||||||
| (dollars in thousands) | Retail | Commercial | Investment | Treasury | Consolidated | |||||||||||||||
| Three Months Ended March 31, 2012 | ||||||||||||||||||||
| Net Interest Income | $ | 39,970 | $ | 31,442 | $ | 3,546 | $ | 22,990 | $ | 97,948 | ||||||||||
| Provision for Credit Losses | 4,030 | (668 | ) | (12 | ) | (2,999 | ) | 351 | ||||||||||||
| Net Interest Income After Provision for Credit Losses | 35,940 | 32,110 | 3,558 | 25,989 | 97,597 | |||||||||||||||
| Noninterest Income | 19,136 | 11,577 | 14,074 | 3,295 | 48,082 | |||||||||||||||
| Noninterest Expense | (44,507 | ) | (23,530 | ) | (15,131 | ) | (2,039 | ) | (85,207 | ) | ||||||||||
| Income Before Provision for Income Taxes | 10,569 | 20,157 | 2,501 | 27,245 | 60,472 | |||||||||||||||
| Provision for Income Taxes | (3,910 | ) | (3,017 | ) | (926 | ) | (8,809 | ) | (16,662 | ) | ||||||||||
| Net Income | 6,659 | 17,140 | 1,575 | 18,436 | 43,810 | |||||||||||||||
| Total Assets as of March 31, 2012 | $ | 3,198,548 | $ | 2,294,278 | $ | 252,915 | $ | 8,013,668 | $ | 13,759,409 | ||||||||||
| Three Months Ended March 31, 2011 1 | ||||||||||||||||||||
| Net Interest Income | $ | 44,424 | $ | 35,004 | $ | 3,863 | $ | 16,406 | $ | 99,697 | ||||||||||
| Provision for Credit Losses | 5,043 | (188 | ) | (140 | ) | (24 | ) | 4,691 | ||||||||||||
| Net Interest Income After Provision for Credit Losses | 39,381 | 35,192 | 4,003 | 16,430 | 95,006 | |||||||||||||||
| Noninterest Income | 20,120 | 9,058 | 15,051 | 9,693 | 53,922 | |||||||||||||||
| Noninterest Expense | (43,818 | ) | (24,503 | ) | (15,403 | ) | (2,358 | ) | (86,082 | ) | ||||||||||
| Income Before Provision for Income Taxes | 15,683 | 19,747 | 3,651 | 23,765 | 62,846 | |||||||||||||||
| Provision for Income Taxes | (5,803 | ) | (6,802 | ) | (1,351 | ) | (6,530 | ) | (20,486 | ) | ||||||||||
| Net Income | 9,880 | 12,945 | 2,300 | 17,235 | 42,360 | |||||||||||||||
| Total Assets as of March 31, 2011 | $ | 3,046,673 | $ | 2,264,528 | $ | 234,847 | $ | 7,416,256 | $ | 12,962,304 | ||||||||||
| 1 Certain prior period information has been reclassified to conform to current presentation. | ||||||||||||||||||||
| Bank of Hawaii Corporation and Subsidiaries | ||||||||||||||||||||||
| Selected Quarterly Financial Data | Table 14 | |||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||
| (dollars in thousands, except per share amounts) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||||||||
| Quarterly Operating Results | ||||||||||||||||||||||
| Interest Income | ||||||||||||||||||||||
| Interest and Fees on Loans and Leases | $ | 64,691 | $ | 64,760 | $ | 65,344 | $ | 65,542 | $ | 66,593 | ||||||||||||
| Income on Investment Securities | ||||||||||||||||||||||
| Available-for-Sale | 17,713 | 19,107 | 23,097 | 23,490 | 37,669 | |||||||||||||||||
| Held-to-Maturity | 26,413 | 23,608 | 20,344 | 20,553 | 7,633 | |||||||||||||||||
| Deposits | 2 | 2 | 6 | 2 | (2 | ) | ||||||||||||||||
| Funds Sold | 129 | 120 | 160 | 297 | 251 | |||||||||||||||||
| Other | 280 | 280 | 279 | 279 | 279 | |||||||||||||||||
| Total Interest Income | 109,228 | 107,877 | 109,230 | 110,163 | 112,423 | |||||||||||||||||
| Interest Expense | ||||||||||||||||||||||
| Deposits | 3,473 | 3,736 | 4,561 | 4,792 | 5,232 | |||||||||||||||||
| Securities Sold Under Agreements to Repurchase | 7,304 | 7,392 | 7,400 | 7,338 | 7,041 | |||||||||||||||||
| Funds Purchased | 5 | 5 | 4 | 5 | 6 | |||||||||||||||||
| Long-Term Debt | 498 | 498 | 499 | 529 | 447 | |||||||||||||||||
| Total Interest Expense | 11,280 | 11,631 | 12,464 | 12,664 | 12,726 | |||||||||||||||||
| Net Interest Income | 97,948 | 96,246 | 96,766 | 97,499 | 99,697 | |||||||||||||||||
| Provision for Credit Losses | 351 | 2,219 | 2,180 | 3,600 | 4,691 | |||||||||||||||||
| Net Interest Income After Provision for Credit Losses | 97,597 | 94,027 | 94,586 | 93,899 | 95,006 | |||||||||||||||||
| Noninterest Income | ||||||||||||||||||||||
| Trust and Asset Management | 10,918 | 11,025 | 10,788 | 11,427 | 11,806 | |||||||||||||||||
| Mortgage Banking | 5,050 | 3,401 | 5,480 | 2,661 | 3,122 | |||||||||||||||||
| Service Charges on Deposit Accounts | 9,591 | 9,606 | 9,820 | 9,375 | 9,932 | |||||||||||||||||
| Fees, Exchange, and Other Service Charges | 12,399 | 12,401 | 16,219 | 16,662 | 14,945 | |||||||||||||||||
| Investment Securities Gains (Losses), Net | (90 | ) | 282 | - | - | 6,084 | ||||||||||||||||
| Insurance | 2,278 | 2,312 | 2,664 | 3,210 | 2,771 | |||||||||||||||||
| Other | 7,936 | 4,380 | 5,892 | 6,128 | 5,262 | |||||||||||||||||
| Total Noninterest Income | 48,082 | 43,407 | 50,863 | 49,463 | 53,922 | |||||||||||||||||
| Noninterest Expense | ||||||||||||||||||||||
| Salaries and Benefits | 47,024 | 44,927 | 44,307 | 46,800 | 46,782 | |||||||||||||||||
| Net Occupancy | 10,516 | 11,253 | 11,113 | 10,476 | 10,327 | |||||||||||||||||
| Net Equipment | 5,826 | 4,748 | 4,662 | 4,741 | 4,698 | |||||||||||||||||
| Professional Fees | 2,132 | 1,926 | 2,245 | 2,294 | 2,158 | |||||||||||||||||
| FDIC Insurance | 2,071 | 2,027 | 2,065 | 2,010 | 3,244 | |||||||||||||||||
| Other | 17,638 | 19,501 | 19,563 | 27,453 | 18,873 | |||||||||||||||||
| Total Noninterest Expense | 85,207 | 84,382 | 83,955 | 93,774 | 86,082 | |||||||||||||||||
| Income Before Provision for Income Taxes | 60,472 | 53,052 | 61,494 | 49,588 | 62,846 | |||||||||||||||||
| Provision for Income Taxes | 16,662 | 13,823 | 18,188 | 14,440 | 20,486 | |||||||||||||||||
| Net Income | $ | 43,810 | $ | 39,229 | $ | 43,306 | $ | 35,148 | $ | 42,360 | ||||||||||||
| Basic Earnings Per Share | $0.96 | $0.85 | $0.93 | $0.74 | $0.89 | |||||||||||||||||
| Diluted Earnings Per Share | $0.95 | $0.85 | $0.92 | $0.74 | $0.88 | |||||||||||||||||
| Balance Sheet Totals | ||||||||||||||||||||||
| Loans and Leases | $ | 5,598,932 | $ | 5,538,304 | $ | 5,348,472 | $ | 5,351,473 | $ | 5,326,929 | ||||||||||||
| Total Assets | 13,759,409 | 13,846,391 | 13,304,758 | 13,161,204 | 12,962,304 | |||||||||||||||||
| Total Deposits | 10,621,170 | 10,592,623 | 10,009,013 | 9,979,034 | 9,912,391 | |||||||||||||||||
| Total Shareholders' Equity | 995,897 | 1,002,667 | 1,017,775 | 1,003,450 | 996,225 | |||||||||||||||||
| Performance Ratios | ||||||||||||||||||||||
| Return on Average Assets | 1.29 | % | 1.17 | % | 1.31 | % | 1.09 | % | 1.32 | % | ||||||||||||
| Return on Average Shareholders' Equity | 17.26 | 15.23 | 16.80 | 13.86 | 16.86 | |||||||||||||||||
| Efficiency Ratio 1 | 58.35 | 60.42 | 56.87 | 63.81 | 56.04 | |||||||||||||||||
| Net Interest Margin 2 | 3.06 | 3.04 | 3.09 | 3.16 | 3.24 | |||||||||||||||||
| 1 The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income). | ||||||||||||||||||||||
| 2 The net interest margin is defined as net interest income, on a fully-taxable equivalent basis, as a percentage of average earning assets. | ||||||||||||||||||||||
| Bank of Hawaii Corporation and Subsidiaries | |||||||||||||||||||||||
| Hawaii Economic Trends | Table 15 | ||||||||||||||||||||||
| Two Months Ended | Year Ended | ||||||||||||||||||||||
| ($ in millions; jobs in thousands) | February 29, 2012 | December 31, 2011 | December 31, 2010 | ||||||||||||||||||||
| Hawaii Economic Trends | |||||||||||||||||||||||
| State General Fund Revenues 1 | $ | 846.2 | 19.4 | % | $ | 4,662.5 | 8.1 | % | $ | 4,314.1 | 7.4 | % | |||||||||||
| General Excise and Use Tax Revenue 1 | $ | 493.2 | 17.6 | $ | 2,588.5 | 8.8 | $ | 2,379.9 | 3.6 | ||||||||||||||
| Jobs 2 | 592.5 | 0.8 | 592.1 | 0.9 | 586.8 | (0.8 | ) | ||||||||||||||||
| March 31, | December 31, | ||||||||||||||||||||||
| (spot rates) | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
| Unemployment 3 | |||||||||||||||||||||||
| Statewide, seasonally adjusted | 6.4 | % | 6.2 | % | 6.3 | % | 6.9 | % | |||||||||||||||
| Oahu | 5.7 | 5.4 | 4.8 | 5.4 | |||||||||||||||||||
| Island of Hawaii | 9.2 | 8.9 | 8.6 | 9.5 | |||||||||||||||||||
| Maui | 7.1 | 7.1 | 7.4 | 8.8 | |||||||||||||||||||
| Kauai | 8.1 | 7.8 | 7.8 | 8.7 | |||||||||||||||||||
| March 31, | December 31, | ||||||||||||||||||||||
| (percentage change, except months of inventory) | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
| Housing Trends (Single Family Oahu) 4 | |||||||||||||||||||||||
| Median Home Price | 10.4 | % | (3.0) | % | 3.1 | % | (7.3) | % | |||||||||||||||
| Home Sales Volume (units) | (1.3) | % | (2.7) | % | 13.4 | % | (1.8) | % | |||||||||||||||
| Months of Inventory | 4.0 | 4.8 | 6.0 | 6.8 | |||||||||||||||||||
| (in thousands) | Monthly Visitor Arrivals, | Percentage Change | |||||||||||||||||||||
| Tourism 2 | |||||||||||||||||||||||
| January 31, 2012 | 649.2 | 3.0 | % | ||||||||||||||||||||
| December 31, 2011 | 630.4 | 2.7 | |||||||||||||||||||||
| November 30, 2011 | 613.8 | 1.7 | |||||||||||||||||||||
| October 31, 2011 | 603.4 | (1.2 | ) | ||||||||||||||||||||
| September 30, 2011 | 610.6 | 3.8 | |||||||||||||||||||||
| August 31, 2011 | 588.4 | 0.9 | |||||||||||||||||||||
| July 31, 2011 | 582.9 | 1.2 | |||||||||||||||||||||
| June 30, 2011 | 575.9 | (0.1 | ) | ||||||||||||||||||||
| May 31, 2011 | 576.6 | (0.8 | ) | ||||||||||||||||||||
| April 30, 2011 | 581.5 | (0.9 | ) | ||||||||||||||||||||
| March 31, 2011 | 586.9 | (2.8 | ) | ||||||||||||||||||||
| February 28, 2011 | 603.8 | (0.3 | ) | ||||||||||||||||||||
| January 31, 2011 | 605.4 | 2.2 | |||||||||||||||||||||
| December 31, 2010 | 592.6 | (0.0 | ) | ||||||||||||||||||||
| November 30, 2010 | 592.9 | (1.5 | ) | ||||||||||||||||||||
| October 31, 2010 | 601.7 | 2.5 | |||||||||||||||||||||
| September 30, 2010 | 587.3 | 1.0 | |||||||||||||||||||||
| August 31, 2010 | 581.7 | (2.5 | ) | ||||||||||||||||||||
| July 31, 2010 | 596.6 | 3.7 | |||||||||||||||||||||
| June 30, 2010 | 575.0 | 0.2 | |||||||||||||||||||||
| May 31, 2010 | 573.9 | 0.9 | |||||||||||||||||||||
| April 30, 2010 | 568.9 | 1.9 | |||||||||||||||||||||
| March 31, 2010 | 558.1 | 2.7 | |||||||||||||||||||||
| February 28, 2010 | 543.5 | (0.3 | ) | ||||||||||||||||||||
| January 31, 2010 | 544.9 | 1.0 | |||||||||||||||||||||
| 1 Source: Hawaii Department of Business, Economic Development & Tourism. | |||||||||||||||||||||||
| 2 Source: University of Hawaii Economic Research Organization. Year-to-date figures. | |||||||||||||||||||||||
| 3 Source: University of Hawaii Economic Research Organization, State of Hawaii Department of Labor and Industrial Relations. | |||||||||||||||||||||||
| 4 Source: Honolulu Board of REALTORS. | |||||||||||||||||||||||
| Note: Certain prior period seasonally adjusted information has been revised. | |||||||||||||||||||||||
Contacts:
Bank of Hawaii Corporation
Media Inquiries
Stafford
Kiguchi, 808-694-8580
Mobile: 808-265-6367
Stafford.Kiguchi@boh.com
Investor/Analyst
Inquiries
Cindy Wyrick, 808-694-8430
Cindy.Wyrick@boh.com
