Le Lézard
Classified in: Business
Subjects: EARNINGS, Photo/Multimedia, Conference Call, Webcast

Bank of Hawaii Corporation Second Quarter 2021 Financial Results


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

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

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

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

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

Financial Highlights

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

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

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

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

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

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

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

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

Asset Quality

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

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

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

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

Other Financial Highlights

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

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

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

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

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

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

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

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

The Company's Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company's outstanding common shares. The dividend will be payable on September 15, 2021 to shareholders of record at the close of business on August 31, 2021. The Board of Directors previously declared the first quarterly dividend payment of $5.59 per share, equivalent to $0.13975 per depositary share, on its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A for the period covering June 15, 2021 through July 31, 2021. The depositary shares representing the Series A Preferred Stock are traded on the NYSE under the symbol "BOH.PRA." The dividend will be payable on August 2, 2021 to shareholders of record of the preferred stock as of July 16, 2021.

Conference Call Information

The Company will review its second quarter financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. The webcast link is https://edge.media-server.com/mmc/p/nujqrorp. The toll-free number for the teleconference is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code "Bank of Hawaii" to access the call. A replay of the conference call will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, July 26, 2021. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the conference ID 3698556 when prompted. In addition, the replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2020 and its Form 10-Q for the fiscal quarter ended March 31, 2021, which were filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

Bank of Hawaii Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawaii and the West Pacific. The Company's principal subsidiary, Bank of Hawaii, was founded in 1897. For more information about Bank of Hawaii Corporation, see the Company's web site, www.boh.com.

Bank of Hawaii Corporation and Subsidiaries
Financial Highlights Table 1
Three Months Ended Six Months Ended

June 30,

 

March 31,

 

June 30,

 

June 30,

(dollars in thousands, except per share amounts)

2021

 

2021

 

2020

 

2021

 

2020

For the Period:
Operating Results
Net Interest Income

$

123,514

 

$

120,569

 

$

126,691

 

$

244,083

 

$

252,657

 

Provision for Credit Losses

 

(16,100

)

 

(14,300

)

 

40,400

 

 

(30,400

)

 

74,000

 

Total Noninterest Income

 

44,431

 

 

42,970

 

 

51,268

 

 

87,401

 

 

97,417

 

Total Noninterest Expense

 

96,527

 

 

98,865

 

 

88,892

 

 

195,392

 

 

185,204

 

Net Income

 

67,533

 

 

59,949

 

 

38,908

 

 

127,482

 

 

73,650

 

Basic Earnings Per Common Share

 

1.69

 

 

1.51

 

 

0.98

 

 

3.20

 

 

1.86

 

Diluted Earnings Per Common Share

 

1.68

 

 

1.50

 

 

0.98

 

 

3.18

 

 

1.85

 

Dividends Declared Per Common Share

 

0.67

 

 

0.67

 

 

0.67

 

 

1.34

 

 

1.34

 

 
Performance Ratios
Return on Average Assets

 

1.23

%

 

1.15

%

 

0.82

%

 

1.19

%

 

0.79

%

Return on Average Shareholders' Equity

 

19.17

 

 

17.65

 

 

11.58

 

 

18.43

 

 

11.11

 

Return on Average Common Equity

 

19.60

 

 

17.65

 

 

11.58

 

 

18.63

 

 

11.11

 

Efficiency Ratio 1

 

57.47

 

 

60.45

 

 

49.95

 

 

58.94

 

 

52.90

 

Net Interest Margin 2

 

2.37

 

 

2.43

 

 

2.83

 

 

2.40

 

 

2.90

 

Dividend Payout Ratio 3

 

39.64

 

 

44.37

 

 

68.37

 

 

41.88

 

 

72.04

 

Average Shareholders' Equity to Average Assets

 

6.40

 

 

6.51

 

 

7.04

 

 

6.45

 

 

7.12

 

 
Average Balances
Average Loans and Leases

$

12,096,308

 

$

11,952,587

 

$

11,727,649

 

$

12,024,844

 

$

11,394,178

 

Average Assets

 

22,073,569

 

 

21,150,670

 

 

19,189,581

 

 

21,614,669

 

 

18,706,092

 

Average Deposits

 

19,698,285

 

 

18,665,222

 

 

16,679,511

 

 

19,184,607

 

 

16,248,628

 

Average Shareholders' Equity

 

1,412,924

 

 

1,377,272

 

 

1,351,345

 

 

1,395,197

 

 

1,332,596

 

 
Per Share of Common Stock
Book Value

$

34.80

 

$

33.67

 

$

33.76

 

$

34.80

 

$

33.76

 

Tangible Book Value

 

34.02

 

 

32.89

 

 

32.97

 

 

34.02

 

 

32.97

 

Market Value
Closing

 

84.22

 

 

89.49

 

 

61.41

 

 

84.22

 

 

61.41

 

High

 

95.95

 

 

99.10

 

 

72.74

 

 

99.10

 

 

95.53

 

Low

 

81.23

 

 

75.65

 

 

51.15

 

 

75.65

 

 

46.70

 

 

June 30,

 

March 31,

 

December 31,

 

June 30,

2021

 

2021

 

2020

 

2020

As of Period End:
Balance Sheet Totals
Loans and Leases

$

12,041,378

 

$

12,140,703

 

$

11,940,020

 

$

11,805,370

 

Total Assets

 

22,672,183

 

 

21,947,271

 

 

20,603,651

 

 

19,769,942

 

Total Deposits

 

20,169,709

 

 

19,556,651

 

 

18,211,621

 

 

17,423,155

 

Other Debt

 

10,437

 

 

60,459

 

 

60,481

 

 

60,524

 

Total Shareholders' Equity

 

1,583,531

 

 

1,360,221

 

 

1,374,507

 

 

1,352,082

 

 
Asset Quality
Non-Performing Assets

$

18,974

 

$

17,883

 

$

18,481

 

$

22,701

 

Allowance for Credit Losses - Loans and Leases

 

180,385

 

 

198,343

 

 

216,252

 

 

173,439

 

Allowance to Loans and Leases Outstanding 4

 

1.50

%

 

1.63

%

 

1.81

%

 

1.47

%

 
Capital Ratios 5
Common Equity Tier 1 Capital Ratio

 

12.36

%

 

12.35

%

 

12.06

%

 

12.04

%

Tier 1 Capital Ratio

 

13.87

 

 

12.35

 

 

12.06

 

 

12.04

 

Total Capital Ratio

 

15.13

 

 

13.61

 

 

13.31

 

 

13.29

 

Tier 1 Leverage Ratio

 

7.31

 

 

6.61

 

 

6.71

 

 

6.90

 

Total Shareholders' Equity to Total Assets

 

6.98

 

 

6.20

 

 

6.67

 

 

6.84

 

Tangible Common Equity to Tangible Assets 6

 

6.08

 

 

6.06

 

 

6.53

 

 

6.69

 

Tangible Common Equity to Risk-Weighted Assets 6

 

11.85

 

 

11.78

 

 

11.89

 

 

12.07

 

 
Non-Financial Data
Full-Time Equivalent Employees

 

2,085

 

 

2,058

 

 

2,022

 

 

2,112

 

Branches

 

54

 

 

63

 

 

65

 

 

67

 

ATMs

 

312

 

 

361

 

 

357

 

 

367

 

1

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

2

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

3

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

4

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

5

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

6

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

June 30,

 

March 31,

 

December 31,

 

June 30,

(dollars in thousands)

2021

 

2021

 

2020

 

2020

 
Total Shareholders' Equity

$

1,583,531

 

$

1,360,221

 

$

1,374,507

 

$

1,352,082

 

Less:Preferred Stock

 

175,487

 

 

-

 

 

-

 

 

-

 

Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

 

31,517

 

Tangible Common Equity

$

1,376,527

 

$

1,328,704

 

$

1,342,990

 

$

1,320,565

 

 
Total Assets

$

22,672,183

 

$

21,947,271

 

$

20,603,651

 

$

19,769,942

 

Less:Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

 

31,517

 

Tangible Assets

$

22,640,666

 

$

21,915,754

 

$

20,572,134

 

$

19,738,425

 

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

$

11,614,522

 

$

11,275,565

 

$

11,295,077

 

$

10,941,894

 

 
Total Shareholders' Equity to Total Assets

 

6.98

%

 

6.20

%

 

6.67

%

 

6.84

%

Tangible Common Equity to Tangible Assets (Non-GAAP)

 

6.08

%

 

6.06

%

 

6.53

%

 

6.69

%

 
Tier 1 Capital Ratio

 

13.87

%

 

12.35

%

 

12.06

%

 

12.04

%

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

 

11.85

%

 

11.78

%

 

11.89

%

 

12.07

%

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

June 30,

 

March 31,

 

June 30,

 

June 30,

(dollars in thousands, except per share amounts)

2021

 

2021

 

2020

 

2021

 

2020

Interest Income
Interest and Fees on Loans and Leases

$

100,894

 

$

99,299

 

$

107,628

$

200,193

 

$

215,838

Income on Investment Securities
Available-for-Sale

 

16,467

 

 

15,837

 

 

14,576

 

32,304

 

 

31,287

Held-to-Maturity

 

13,576

 

 

13,300

 

 

16,723

 

26,876

 

 

35,975

Deposits

 

-

 

 

7

 

 

1

 

7

 

 

10

Funds Sold

 

260

 

 

137

 

 

92

 

397

 

 

638

Other

 

182

 

 

185

 

 

125

 

367

 

 

343

Total Interest Income

 

131,379

 

 

128,765

 

 

139,145

 

260,144

 

 

284,091

Interest Expense
Deposits

 

4,152

 

 

4,329

 

 

7,954

 

8,481

 

 

22,214

Securities Sold Under Agreements to Repurchase

 

3,470

 

 

3,533

 

 

4,020

 

7,003

 

 

8,045

Funds Purchased

 

-

 

 

1

 

 

18

 

1

 

 

90

Short-Term Borrowings

 

-

 

 

-

 

 

22

 

-

 

 

61

Other Debt

 

243

 

 

333

 

 

440

 

576

 

 

1,024

Total Interest Expense

 

7,865

 

 

8,196

 

 

12,454

 

16,061

 

 

31,434

Net Interest Income

 

123,514

 

 

120,569

 

 

126,691

 

244,083

 

 

252,657

Provision for Credit Losses

 

(16,100

)

 

(14,300

)

 

40,400

 

(30,400

)

 

74,000

Net Interest Income After Provision for Credit Losses

 

139,614

 

 

134,869

 

 

86,291

 

274,483

 

 

178,657

Noninterest Income
Trust and Asset Management

 

11,682

 

 

11,278

 

 

10,550

 

22,960

 

 

21,465

Mortgage Banking

 

3,058

 

 

5,862

 

 

4,278

 

8,920

 

 

6,973

Service Charges on Deposit Accounts

 

6,065

 

 

6,128

 

 

5,097

 

12,193

 

 

12,548

Fees, Exchange, and Other Service Charges

 

13,807

 

 

13,607

 

 

9,417

 

27,414

 

 

22,617

Investment Securities Gains (Losses), Net

 

2,423

 

 

(1,203

)

 

13,216

 

1,220

 

 

12,246

Annuity and Insurance

 

911

 

 

702

 

 

883

 

1,613

 

 

1,811

Bank-Owned Life Insurance

 

2,063

 

 

1,917

 

 

1,649

 

3,980

 

 

3,229

Other

 

4,422

 

 

4,679

 

 

6,178

 

9,101

 

 

16,528

Total Noninterest Income

 

44,431

 

 

42,970

 

 

51,268

 

87,401

 

 

97,417

Noninterest Expense
Salaries and Benefits

 

56,161

 

 

56,251

 

 

50,715

 

112,412

 

 

105,178

Net Occupancy

 

5,047

 

 

9,090

 

 

8,761

 

14,137

 

 

17,716

Net Equipment

 

8,796

 

 

8,878

 

 

8,195

 

17,674

 

 

16,651

Data Processing

 

4,557

 

 

6,322

 

 

4,416

 

10,879

 

 

9,204

Professional Fees

 

3,114

 

 

3,406

 

 

3,061

 

6,520

 

 

6,269

FDIC Insurance

 

1,669

 

 

1,654

 

 

1,558

 

3,323

 

 

3,014

Other

 

17,183

 

 

13,264

 

 

12,186

 

30,447

 

 

27,172

Total Noninterest Expense

 

96,527

 

 

98,865

 

 

88,892

 

195,392

 

 

185,204

Income Before Provision for Income Taxes

 

87,518

 

 

78,974

 

 

48,667

 

166,492

 

 

90,870

Provision for Income Taxes

 

19,985

 

 

19,025

 

 

9,759

 

39,010

 

 

17,220

Net Income

$

67,533

 

$

59,949

 

$

38,908

$

127,482

 

$

73,650

Basic Earnings Per Common Share

$

1.69

 

$

1.51

 

$

0.98

$

3.20

 

$

1.86

Diluted Earnings Per Common Share

$

1.68

 

$

1.50

 

$

0.98

$

3.18

 

$

1.85

Dividends Declared Per Common Share

$

0.67

 

$

0.67

 

$

0.67

$

1.34

 

$

1.34

Basic Weighted Average Common Shares

 

39,902,583

 

 

39,827,590

 

 

39,703,735

 

39,865,268

 

 

39,692,695

Diluted Weighted Average Common Shares

 

40,122,905

 

 

40,071,477

 

 

39,832,475

 

40,096,527

 

 

39,873,334

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income Table 4
Three Months Ended Six Months Ended

June 30,

 

March 31,

 

June 30,

 

June 30,

(dollars in thousands)

2021

 

2021

 

2020

 

2021

 

2020

Net Income

$

67,533

 

$

59,949

 

$

38,908

$

127,482

 

$

73,650

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

 

(123

)

 

(50,050

)

 

7,730

 

(50,173

)

 

49,289

Defined Benefit Plans

 

442

 

 

441

 

 

374

 

883

 

 

748

Other Comprehensive Income (Loss)

 

319

 

 

(49,609

)

 

8,104

 

(49,290

)

 

50,037

Comprehensive Income

$

67,852

 

$

10,340

 

$

47,012

$

78,192

 

$

123,687

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

2021

 

2021

 

2020

 

2020

Assets
Interest-Bearing Deposits in Other Banks

$

2,584

 

$

4,506

 

$

1,646

 

$

2,310

 

Funds Sold

 

909,730

 

 

1,101,631

 

 

333,022

 

 

800,857

 

Investment Securities
Available-for-Sale

 

4,522,941

 

 

4,024,763

 

 

3,791,689

 

 

2,726,478

 

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

 

3,947,613

 

 

3,464,360

 

 

3,262,727

 

 

3,276,829

 

Loans Held for Sale

 

47,490

 

 

18,320

 

 

82,565

 

 

20,711

 

Loans and Leases

 

12,041,378

 

 

12,140,703

 

 

11,940,020

 

 

11,805,370

 

Allowance for Credit Losses

 

(180,385

)

 

(198,343

)

 

(216,252

)

 

(173,439

)

Net Loans and Leases

 

11,860,993

 

 

11,942,360

 

 

11,723,768

 

 

11,631,931

 

Total Earning Assets

 

21,291,351

 

 

20,555,940

 

 

19,195,417

 

 

18,459,116

 

Cash and Due from Banks

 

269,153

 

 

286,717

 

 

279,420

 

 

242,423

 

Premises and Equipment, Net

 

198,508

 

 

198,107

 

 

199,695

 

 

198,582

 

Operating Lease Right-of-Use Assets

 

97,264

 

 

97,750

 

 

99,542

 

 

97,166

 

Accrued Interest Receivable

 

47,046

 

 

47,917

 

 

49,303

 

 

50,645

 

Foreclosed Real Estate

 

2,332

 

 

2,332

 

 

2,332

 

 

2,506

 

Mortgage Servicing Rights

 

21,473

 

 

22,320

 

 

19,652

 

 

22,904

 

Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

 

31,517

 

Bank-Owned Life Insurance

 

292,805

 

 

291,764

 

 

291,480

 

 

291,185

 

Other Assets

 

420,734

 

 

412,907

 

 

435,293

 

 

373,898

 

Total Assets

$

22,672,183

 

$

21,947,271

 

$

20,603,651

 

$

19,769,942

 

 
Liabilities
Deposits
Noninterest-Bearing Demand

$

6,570,232

 

$

6,227,436

 

$

5,749,612

 

$

5,485,015

 

Interest-Bearing Demand

 

4,498,825

 

 

4,379,243

 

 

4,040,733

 

 

3,437,654

 

Savings

 

7,704,575

 

 

7,474,580

 

 

6,759,213

 

 

6,821,710

 

Time

 

1,396,077

 

 

1,475,392

 

 

1,662,063

 

 

1,678,776

 

Total Deposits

 

20,169,709

 

 

19,556,651

 

 

18,211,621

 

 

17,423,155

 

Funds Purchased

 

-

 

 

-

 

 

-

 

 

-

 

Short-Term Borrowings

 

-

 

 

-

 

 

-

 

 

-

 

Securities Sold Under Agreements to Repurchase

 

550,490

 

 

600,490

 

 

600,590

 

 

603,206

 

Other Debt

 

10,437

 

 

60,459

 

 

60,481

 

 

60,524

 

Operating Lease Liabilities

 

105,380

 

 

105,820

 

 

107,412

 

 

104,741

 

Retirement Benefits Payable

 

50,260

 

 

50,687

 

 

51,197

 

 

43,833

 

Accrued Interest Payable

 

3,879

 

 

4,109

 

 

5,117

 

 

7,775

 

Taxes Payable and Deferred Taxes

 

11,844

 

 

15,599

 

 

2,463

 

 

38,297

 

Other Liabilities

 

186,653

 

 

193,235

 

 

190,263

 

 

136,329

 

Total Liabilities

 

21,088,652

 

 

20,587,050

 

 

19,229,144

 

 

18,417,860

 

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

 

180,000

 

 

-

 

 

-

 

 

-

 

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

 

580

 

 

580

 

 

580

 

 

580

 

Capital Surplus

 

594,261

 

 

594,804

 

 

591,360

 

 

586,946

 

Accumulated Other Comprehensive Income (Loss)

 

(41,468

)

 

(41,787

)

 

7,822

 

 

18,925

 

Retained Earnings

 

1,884,431

 

 

1,844,057

 

 

1,811,979

 

 

1,786,351

 

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

 

(1,034,273

)

 

(1,037,433

)

 

(1,037,234

)

 

(1,040,720

)

Total Shareholders' Equity

 

1,583,531

 

 

1,360,221

 

 

1,374,507

 

 

1,352,082

 

Total Liabilities and Shareholders' Equity

$

22,672,183

 

$

21,947,271

 

$

20,603,651

 

$

19,769,942

 

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity Table 6
Accum.
Other
Compre-
Preferred Common hensive
Shares Preferred Shares Common Capital Income Retained Treasury
(dollars in thousands) Outstanding Stock Outstanding Stock Surplus (Loss) Earnings Stock Total
Balance as of December 31, 2020

-

$

-

40,119,312

 

$

580

$

591,360

 

$

7,822

 

$

1,811,979

 

$

(1,037,234

)

$

1,374,507

 

Net Income

-

 

-

-

 

 

-

 

-

 

 

-

 

 

127,482

 

 

-

 

 

127,482

 

Other Comprehensive Loss

-

 

-

-

 

 

-

 

-

 

 

(49,290

)

 

-

 

 

-

 

 

(49,290

)

Share-Based Compensation

-

 

-

-

 

 

-

 

6,122

 

 

-

 

 

-

 

 

-

 

 

6,122

 

Preferred Stock Issued, Net

180,000

 

180,000

-

 

 

-

 

(4,513

)

 

-

 

 

-

 

 

-

 

 

175,487

 

Common Stock Issued under Purchase and Equity Compensation Plans

-

 

-

383,326

 

 

-

 

1,292

 

 

-

 

 

(891

)

 

6,259

 

 

6,660

 

Common Stock Repurchased

-

 

-

(37,156

)

 

-

 

-

 

 

-

 

 

-

 

 

(3,298

)

 

(3,298

)

Cash Dividends Declared Common Stock ($1.34 per share)

-

 

-

-

 

 

-

 

-

 

 

-

 

 

(54,139

)

 

-

 

 

(54,139

)

Balance as of June 30, 2021

180,000

$

180,000

40,465,482

 

$

580

$

594,261

 

$

(41,468

)

$

1,884,431

 

$

(1,034,273

)

$

1,583,531

 

 
Balance as of December 31, 2019

-

$

-

40,039,695

 

$

579

$

582,566

 

$

(31,112

)

$

1,761,415

 

$

(1,026,616

)

$

1,286,832

 

Net Income

-

 

-

-

 

 

-

 

-

 

 

-

 

 

73,650

 

 

-

 

 

73,650

 

Other Comprehensive Income

-

 

-

-

 

 

-

 

-

 

 

50,037

 

 

-

 

 

-

 

 

50,037

 

Cumulative Change in Accounting Principle

-

 

-

-

 

 

-

 

-

 

 

-

 

 

3,632

 

 

-

 

 

3,632

 

Share-Based Compensation

-

 

-

-

 

 

-

 

3,704

 

 

-

 

 

-

 

 

-

 

 

3,704

 

Common Stock Issued under Purchase and Equity Compensation Plans

-

 

-

195,351

 

 

1

 

676

 

 

-

 

 

1,333

 

 

3,041

 

 

5,051

 

Common Stock Repurchased

-

 

-

(187,352

)

 

-

 

-

 

 

-

 

 

-

 

 

(17,145

)

 

(17,145

)

Cash Dividends Declared Common Stock ($1.34 per share)

-

 

-

-

 

 

-

 

-

 

 

-

 

 

(53,679

)

 

-

 

 

(53,679

)

Balance as of June 30, 2020

-

$

-

40,047,694

 

$

580

$

586,946

 

$

18,925

 

$

1,786,351

 

$

(1,040,720

)

$

1,352,082

 

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

Table 7a

Three Months Ended Three Months Ended Three Months Ended
June 30, 2021 March 31, 2021 June 30, 2020
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
(dollars in millions) Balance Expense Rate Balance Expense Rate Balance Expense Rate
Earning Assets
Interest-Bearing Deposits in Other Banks

$

2.2

$

-

0.04

%

$

3.2

 

$

-

0.93

%

$

2.6

 

$

-

0.18

%

Funds Sold

 

946.2

 

0.3

0.11

 

 

550.6

 

 

0.1

0.10

 

 

545.9

 

 

0.1

0.07

 

Investment Securities
Available-for-Sale
Taxable

 

4,290.8

 

16.3

1.53

 

 

4,007.9

 

 

15.8

1.57

 

 

2,614.1

 

 

14.3

2.19

 

Non-Taxable

 

12.3

 

0.1

4.27

 

 

12.3

 

 

0.1

4.27

 

 

32.2

 

 

0.4

4.45

 

Held-to-Maturity
Taxable

 

3,496.2

 

13.4

1.53

 

 

3,385.8

 

 

13.1

1.55

 

 

2,957.6

 

 

16.4

2.22

 

Non-Taxable

 

41.5

 

0.3

2.53

 

 

38.1

 

 

0.2

2.55

 

 

54.4

 

 

0.4

2.66

 

Total Investment Securities

 

7,840.8

 

30.1

1.54

 

 

7,444.1

 

 

29.2

1.57

 

 

5,658.3

 

 

31.5

2.22

 

Loans Held for Sale

 

25.7

 

0.2

2.86

 

 

26.2

 

 

0.2

2.76

 

 

23.4

 

 

0.2

3.24

 

Loans and Leases 1
Commercial and Industrial

 

1,934.5

 

16.8

3.49

 

 

1,904.5

 

 

14.3

3.05

 

 

1,963.8

 

 

17.9

3.67

 

Commercial Mortgage

 

2,883.5

 

21.3

2.96

 

 

2,846.0

 

 

21.3

3.04

 

 

2,622.9

 

 

22.3

3.42

 

Construction

 

285.6

 

2.6

3.66

 

 

264.1

 

 

2.3

3.48

 

 

255.8

 

 

2.5

3.93

 

Commercial Lease Financing

 

105.7

 

0.4

1.54

 

 

106.4

 

 

0.4

1.43

 

 

110.9

 

 

0.5

1.88

 

Residential Mortgage

 

4,234.3

 

35.6

3.35

 

 

4,146.6

 

 

35.9

3.46

 

 

3,939.6

 

 

36.0

3.65

 

Home Equity

 

1,573.4

 

12.1

3.09

 

 

1,594.1

 

 

12.6

3.20

 

 

1,665.2

 

 

14.3

3.45

 

Automobile

 

710.4

 

6.1

3.45

 

 

708.3

 

 

6.1

3.51

 

 

701.2

 

 

6.2

3.55

 

Other 2

 

368.9

 

6.0

6.53

 

 

382.6

 

 

6.4

6.75

 

 

468.2

 

 

7.9

6.77

 

Total Loans and Leases

 

12,096.3

 

100.9

3.34

 

 

11,952.6

 

 

99.3

3.35

 

 

11,727.6

 

 

107.6

3.68

 

Other

 

32.3

 

0.2

2.26

 

 

33.4

 

 

0.2

2.21

 

 

34.0

 

 

0.1

1.47

 

Total Earning Assets 3

 

20,943.5

 

131.7

2.52

 

 

20,010.1

 

 

129.0

2.60

 

 

17,991.8

 

 

139.5

3.11

 

Cash and Due from Banks

 

256.1

 

270.7

 

 

302.4

 

Other Assets

 

874.0

 

869.9

 

 

895.4

 

Total Assets

$

22,073.6

$

21,150.7

 

$

19,189.6

 

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

$

4,452.4

 

0.7

0.07

 

$

4,186.4

 

 

0.6

0.06

 

$

3,226.6

 

 

0.6

0.07

 

Savings

 

7,533.0

 

1.8

0.09

 

 

7,016.6

 

 

1.5

0.09

 

 

6,691.4

 

 

2.2

0.13

 

Time

 

1,418.4

 

1.7

0.47

 

 

1,630.0

 

 

2.2

0.56

 

 

1,826.8

 

 

5.2

1.13

 

Total Interest-Bearing Deposits

 

13,403.8

 

4.2

0.12

 

 

12,833.0

 

 

4.3

0.14

 

 

11,744.8

 

 

8.0

0.27

 

Short-Term Borrowings

 

-

 

-

-

 

 

2.4

 

 

-

0.09

 

 

57.6

 

 

-

0.28

 

Securities Sold Under Agreements to Repurchase

 

570.3

 

3.5

2.41

 

 

600.5

 

 

3.6

2.35

 

 

602.9

 

 

4.0

2.64

 

Other Debt

 

30.2

 

0.2

3.22

 

 

60.5

 

 

0.3

2.22

 

 

60.5

 

 

0.5

2.91

 

Total Interest-Bearing Liabilities

 

14,004.3

 

7.9

0.22

 

 

13,496.4

 

 

8.2

0.24

 

 

12,465.8

 

 

12.5

0.40

 

Net Interest Income

$

123.8

$

120.8

$

127.0

Interest Rate Spread

 

2.30

%

 

2.36

%

2.71

%

Net Interest Margin

 

2.37

%

 

2.43

%

2.83

%

Noninterest-Bearing Demand Deposits

 

6,294.5

 

5,832.2

 

 

4,934.7

 

Other Liabilities

 

361.9

 

444.8

 

 

437.8

 

Shareholders' Equity

 

1,412.9

 

1,377.3

 

 

1,351.3

 

Total Liabilities and Shareholders' Equity

$

22,073.6

$

21,150.7

 

$

19,189.6

 

1

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

2

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

3

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

Table 7b

Six Months Ended Six Months Ended
June 30, 2021 June 30, 2020
Average Income/ Yield/ Average Income/ Yield/
(dollars in millions) Balance Expense Rate Balance Expense Rate
Earning Assets
Interest-Bearing Deposits in Other Banks

$

2.7

$

-

0.56

%

$

2.0

$

-

0.96

%

Funds Sold

 

749.5

 

0.4

0.11

 

 

349.3

 

0.6

0.36

 

Investment Securities
Available-for-Sale
Taxable

 

4,150.2

 

32.1

1.55

 

 

2,658.3

 

30.8

2.31

 

Non-Taxable

 

12.3

 

0.3

4.27

 

 

32.3

 

0.7

4.43

 

Held-to-Maturity
Taxable

 

3,441.3

 

26.5

1.54

 

 

2,996.9

 

35.4

2.36

 

Non-Taxable

 

39.8

 

0.5

2.54

 

 

54.5

 

0.7

2.67

 

Total Investment Securities

 

7,643.6

 

59.4

1.55

 

 

5,742.0

 

67.6

2.35

 

Loans Held for Sale

 

25.9

 

0.4

2.81

 

 

23.3

 

0.4

3.39

 

Loans and Leases 1
Commercial and Industrial

 

1,919.5

 

31.2

3.27

 

 

1,686.5

 

31.1

3.71

 

Commercial Mortgage

 

2,864.9

 

42.6

3.00

 

 

2,586.2

 

47.4

3.69

 

Construction

 

274.9

 

4.9

3.57

 

 

234.6

 

5.0

4.26

 

Commercial Lease Financing

 

106.1

 

0.8

1.48

 

 

111.1

 

1.1

1.91

 

Residential Mortgage

 

4,190.7

 

71.4

3.41

 

 

3,917.5

 

72.9

3.72

 

Home Equity

 

1,583.7

 

24.7

3.14

 

 

1,672.7

 

29.5

3.55

 

Automobile

 

709.3

 

12.2

3.48

 

 

711.1

 

12.6

3.56

 

Other 2

 

375.7

 

12.4

6.64

 

 

474.5

 

16.3

6.92

 

Total Loans and Leases

 

12,024.8

 

200.2

3.35

 

 

11,394.2

 

215.9

3.80

 

Other

 

32.9

 

0.4

2.24

 

 

34.2

 

0.3

2.01

 

Total Earning Assets 3

 

20,479.4

 

260.8

2.56

 

 

17,545.0

 

284.8

3.26

 

Cash and Due from Banks

 

263.4

 

290.6

Other Assets

 

871.9

 

870.5

Total Assets

$

21,614.7

$

18,706.1

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

$

4,320.2

 

1.3

0.06

 

$

3,168.3

 

1.5

0.10

 

Savings

 

7,276.2

 

3.3

0.09

 

 

6,596.9

 

9.3

0.28

 

Time

 

1,523.6

 

3.9

0.52

 

 

1,784.9

 

11.4

1.28

 

Total Interest-Bearing Deposits

 

13,120.0

 

8.5

0.13

 

 

11,550.1

 

22.2

0.39

 

Short-Term Borrowings

 

1.2

 

-

0.09

 

 

57.7

 

0.2

0.52

 

Securities Sold Under Agreements to Repurchase

 

585.3

 

7.0

2.38

 

 

603.5

 

8.0

2.64

 

Other Debt

 

45.3

 

0.6

2.56

 

 

63.7

 

1.0

3.23

 

Total Interest-Bearing Liabilities

 

13,751.8

 

16.1

0.23

 

 

12,275.0

 

31.4

0.51

 

Net Interest Income

$

244.7

$

253.4

Interest Rate Spread

2.33

%

2.75

%

Net Interest Margin

2.40

%

2.90

%

Noninterest-Bearing Demand Deposits

 

6,064.6

 

4,698.5

Other Liabilities

 

403.1

 

400.0

Shareholders' Equity

 

1,395.2

 

1,332.6

Total Liabilities and Shareholders' Equity

$

21,614.7

$

18,706.1

1

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

2

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

3

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

Table 8a

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

$

0.1

 

$

0.1

 

$

0.2

 

Investment Securities
Available-for-Sale
Taxable

 

1.1

 

 

(0.6

)

 

0.5

 

Held-to-Maturity
Taxable

 

0.4

 

 

(0.1

)

 

0.3

 

Non-Taxable

 

0.1

 

 

-

 

 

0.1

 

Total Investment Securities

 

1.6

 

 

(0.7

)

 

0.9

 

Loans and Leases
Commercial and Industrial

 

0.2

 

 

2.3

 

 

2.5

 

Commercial Mortgage

 

0.4

 

 

(0.4

)

 

-

 

Construction

 

0.2

 

 

0.1

 

 

0.3

 

Residential Mortgage

 

0.8

 

 

(1.1

)

 

(0.3

)

Home Equity

 

(0.2

)

 

(0.3

)

 

(0.5

)

Other 2

 

(0.2

)

 

(0.2

)

 

(0.4

)

Total Loans and Leases

 

1.2

 

 

0.4

 

 

1.6

 

Total Change in Interest Income

 

2.9

 

 

(0.2

)

 

2.7

 

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

-

 

 

0.1

 

 

0.1

 

Savings

 

0.1

 

 

0.2

 

 

0.3

 

Time

 

(0.2

)

 

(0.3

)

 

(0.5

)

Total Interest-Bearing Deposits

 

(0.1

)

 

-

 

 

(0.1

)

Securities Sold Under Agreements to Repurchase

 

(0.2

)

 

0.1

 

 

(0.1

)

Other Debt

 

(0.2

)

 

0.1

 

 

(0.1

)

Total Change in Interest Expense

 

(0.5

)

 

0.2

 

 

(0.3

)

 
Change in Net Interest Income

$

3.4

 

$

(0.4

)

$

3.0

 

1

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

2

Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8b
Three Months Ended June 30, 2021
Compared to June 30, 2020
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Funds Sold

$

0.1

 

$

0.1

 

$

0.2

 

Investment Securities
Available-for-Sale
Taxable

 

7.2

 

 

(5.2

)

 

2.0

 

Non-Taxable

 

(0.2

)

 

(0.1

)

 

(0.3

)

Held-to-Maturity
Taxable

 

2.7

 

 

(5.7

)

 

(3.0

)

Non-Taxable

 

(0.1

)

 

-

 

 

(0.1

)

Total Investment Securities

 

9.6

 

 

(11.0

)

 

(1.4

)

Loans and Leases
Commercial and Industrial

 

(0.2

)

 

(0.9

)

 

(1.1

)

Commercial Mortgage

 

2.1

 

 

(3.1

)

 

(1.0

)

Construction

 

0.3

 

 

(0.2

)

 

0.1

 

Commercial Lease Financing

 

-

 

 

(0.1

)

 

(0.1

)

Residential Mortgage

 

2.6

 

 

(3.0

)

 

(0.4

)

Home Equity

 

(0.8

)

 

(1.4

)

 

(2.2

)

Automobile

 

0.1

 

 

(0.2

)

 

(0.1

)

Other 2

 

(1.6

)

 

(0.3

)

 

(1.9

)

Total Loans and Leases

 

2.5

 

 

(9.2

)

 

(6.7

)

Other

 

-

 

 

0.1

 

 

0.1

 

Total Change in Interest Income

 

12.2

 

 

(20.0

)

 

(7.8

)

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

0.2

 

 

(0.1

)

 

0.1

 

Savings

 

0.3

 

 

(0.7

)

 

(0.4

)

Time

 

(1.0

)

 

(2.5

)

 

(3.5

)

Total Interest-Bearing Deposits

 

(0.5

)

 

(3.3

)

 

(3.8

)

Securities Sold Under Agreements to Repurchase

 

(0.2

)

 

(0.3

)

 

(0.5

)

Other Debt

 

(0.3

)

 

-

 

 

(0.3

)

Total Change in Interest Expense

 

(1.0

)

 

(3.6

)

 

(4.6

)

 
Change in Net Interest Income

$

13.2

 

$

(16.4

)

$

(3.2

)

1

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

2

Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8c
Six Months Ended June 30, 2021
Compared to June 30, 2020
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Funds Sold

$

0.4

 

$

(0.6

)

$

(0.2

)

Investment Securities
Available-for-Sale
Taxable

 

13.6

 

 

(12.3

)

 

1.3

 

Non-Taxable

 

(0.4

)

 

-

 

 

(0.4

)

Held-to-Maturity
Taxable

 

4.7

 

 

(13.6

)

 

(8.9

)

Non-Taxable

 

(0.2

)

 

-

 

 

(0.2

)

Total Investment Securities

 

17.7

 

 

(25.9

)

 

(8.2

)

Loans Held for Sale

 

0.1

 

 

(0.1

)

 

-

 

Loans and Leases
Commercial and Industrial

 

4.0

 

 

(3.9

)

 

0.1

 

Commercial Mortgage

 

4.7

 

 

(9.5

)

 

(4.8

)

Construction

 

0.8

 

 

(0.9

)

 

(0.1

)

Commercial Lease Financing

 

(0.1

)

 

(0.2

)

 

(0.3

)

Residential Mortgage

 

4.9

 

 

(6.4

)

 

(1.5

)

Home Equity

 

(1.5

)

 

(3.3

)

 

(4.8

)

Automobile

 

(0.1

)

 

(0.3

)

 

(0.4

)

Other 2

 

(3.3

)

 

(0.6

)

 

(3.9

)

Total Loans and Leases

 

9.4

 

 

(25.1

)

 

(15.7

)

Other

 

-

 

 

0.1

 

 

0.1

 

Total Change in Interest Income

 

27.6

 

 

(51.6

)

 

(24.0

)

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

0.4

 

 

(0.6

)

 

(0.2

)

Savings

 

0.9

 

 

(6.9

)

 

(6.0

)

Time

 

(1.5

)

 

(6.0

)

 

(7.5

)

Total Interest-Bearing Deposits

 

(0.2

)

 

(13.5

)

 

(13.7

)

Short-Term Borrowings

 

(0.1

)

 

(0.1

)

 

(0.2

)

Securities Sold Under Agreements to Repurchase

 

(0.2

)

 

(0.8

)

 

(1.0

)

Other Debt

 

(0.3

)

 

(0.1

)

 

(0.4

)

Total Change in Interest Expense

 

(0.8

)

 

(14.5

)

 

(15.3

)

 
Change in Net Interest Income

$

28.4

 

$

(37.1

)

$

(8.7

)

1

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

2

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

2021

2021

2020

2021

2020

Salaries

$

33,413

$

31,569

$

32,739

$

64,982

$

66,225

Incentive Compensation

 

5,172

 

5,914

 

3,141

 

11,086

 

3,386

Share-Based Compensation

 

3,174

 

2,584

 

2,021

 

5,758

 

3,312

Commission Expense

 

2,599

 

2,436

 

1,647

 

5,035

 

3,021

Retirement and Other Benefits

 

5,289

 

5,517

 

4,446

 

10,806

 

9,152

Payroll Taxes

 

3,026

 

3,968

 

2,782

 

6,994

 

7,325

Medical, Dental, and Life Insurance

 

3,204

 

2,424

 

3,830

 

5,628

 

7,972

Separation Expense

 

284

 

1,839

 

109

 

2,123

 

4,785

Total Salaries and Benefits

$

56,161

$

56,251

$

50,715

$

112,412

$

105,178

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

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

(dollars in thousands)

2021

 

2021

 

2020

 

2020

 

2020

Commercial
Commercial and Industrial

$

1,257,305

$

1,288,496

$

1,357,610

$

1,376,843

$

1,428,481

PPP 1

 

513,513

 

725,485

 

517,683

 

531,639

 

528,458

Commercial Mortgage

 

2,944,435

 

2,859,246

 

2,854,829

 

2,745,611

 

2,707,534

Construction

 

277,393

 

281,164

 

259,798

 

250,943

 

245,099

Lease Financing

 

110,500

 

104,980

 

110,766

 

111,831

 

113,187

Total Commercial

 

5,103,146

 

5,259,371

 

5,100,686

 

5,016,867

 

5,022,759

Consumer
Residential Mortgage

 

4,264,180

 

4,216,976

 

4,130,513

 

4,044,228

 

3,989,393

Home Equity

 

1,594,781

 

1,577,500

 

1,604,538

 

1,605,486

 

1,640,887

Automobile

 

714,729

 

710,407

 

708,800

 

709,937

 

700,702

Other 2

 

364,542

 

376,449

 

395,483

 

417,090

 

451,629

Total Consumer

 

6,938,232

 

6,881,332

 

6,839,334

 

6,776,741

 

6,782,611

Total Loans and Leases

$

12,041,378

$

12,140,703

$

11,940,020

$

11,793,608

$

11,805,370

 
 
Deposits

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

2021

2021

2020

2020

2020

Consumer

$

9,848,285

$

9,746,713

$

9,347,725

$

8,903,808

$

8,766,885

Commercial

 

8,675,909

 

8,241,102

 

7,302,832

 

7,159,531

 

7,295,033

Public and Other

 

1,645,515

 

1,568,836

 

1,561,064

 

1,675,544

 

1,361,237

Total Deposits

$

20,169,709

$

19,556,651

$

18,211,621

$

17,738,883

$

17,423,155

1

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

2

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

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

2021

2021

2020

2020

2020

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

$

258

 

$

293

 

$

441

 

$

475

 

$

459

 

Commercial Mortgage

 

8,413

 

 

8,503

 

 

8,527

 

 

8,615

 

 

8,672

 

Total Commercial

 

8,671

 

 

8,796

 

 

8,968

 

 

9,090

 

 

9,131

 

Consumer
Residential Mortgage

 

2,437

 

 

1,804

 

 

3,223

 

 

3,543

 

 

5,888

 

Home Equity

 

5,534

 

 

4,951

 

 

3,958

 

 

3,661

 

 

5,176

 

Total Consumer

 

7,971

 

 

6,755

 

 

7,181

 

 

7,204

 

 

11,064

 

Total Non-Accrual Loans and Leases

 

16,642

 

 

15,551

 

 

16,149

 

 

16,294

 

 

20,195

 

Foreclosed Real Estate

 

2,332

 

 

2,332

 

 

2,332

 

 

2,332

 

 

2,506

 

Total Non-Performing Assets

$

18,974

 

$

17,883

 

$

18,481

 

$

18,626

 

$

22,701

 

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

$

-

 

$

9

 

$

-

 

$

-

 

$

-

 

Total Commercial

 

-

 

 

9

 

 

-

 

 

-

 

 

-

 

Consumer
Residential Mortgage

$

4,069

 

$

4,069

 

$

5,274

 

$

6,607

 

$

4,937

 

Home Equity

 

4,498

 

 

4,906

 

 

3,187

 

 

2,571

 

 

3,519

 

Automobile

 

277

 

 

604

 

 

925

 

 

156

 

 

133

 

Other 1

 

434

 

 

828

 

 

1,160

 

 

258

 

 

296

 

Total Consumer

 

9,278

 

 

10,407

 

 

10,546

 

 

9,592

 

 

8,885

 

Total Accruing Loans and Leases Past Due 90 Days or More

$

9,278

 

$

10,416

 

$

10,546

 

$

9,592

 

$

8,885

 

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

$

74,926

 

$

74,216

 

$

68,065

 

$

58,650

 

$

59,713

 

Total Loans and Leases

$

12,041,378

 

$

12,140,703

 

$

11,940,020

 

$

11,793,608

 

$

11,805,370

 

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

 

0.14

%

 

0.13

%

 

0.14

%

 

0.14

%

 

0.17

%

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

 

0.16

%

 

0.15

%

 

0.15

%

 

0.16

%

 

0.19

%

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

 

0.17

%

 

0.17

%

 

0.18

%

 

0.18

%

 

0.18

%

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

 

0.15

%

 

0.13

%

 

0.14

%

 

0.14

%

 

0.20

%

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

 

0.23

%

 

0.23

%

 

0.24

%

 

0.24

%

 

0.27

%

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

$

17,883

 

$

18,481

 

$

18,626

 

$

22,701

 

$

20,604

 

Additions

 

2,229

 

 

2,992

 

 

434

 

 

938

 

 

5,856

 

Reductions
Payments

 

(722

)

 

(2,481

)

 

(490

)

 

(3,729

)

 

(2,736

)

Return to Accrual Status

 

(416

)

 

(1,014

)

 

-

 

 

(1,035

)

 

(822

)

Sales of Foreclosed Real Estate

 

-

 

 

-

 

 

-

 

 

(175

)

 

-

 

Charge-offs/Write-downs

 

-

 

 

(95

)

 

(89

)

 

(74

)

 

(201

)

Total Reductions

 

(1,138

)

 

(3,590

)

 

(579

)

 

(5,013

)

 

(3,759

)

Balance at End of Quarter

$

18,974

 

$

17,883

 

$

18,481

 

$

18,626

 

$

22,701

 

1

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

2021

 

2021

 

2020

 

2021

 

2020

Balance at Beginning of Period

$

203,779

 

$

221,303

 

$

141,467

 

$

221,303

 

 

116,849

 

 
CECL Adoption (Day 1) Impact

 

-

 

 

-

 

 

-

 

 

-

 

 

(5,072

)

 
Loans and Leases Charged-Off
Commercial
Commercial and Industrial

 

(456

)

 

(248

)

 

(656

)

 

(704

)

 

(1,349

)

Consumer
Residential Mortgage

 

(115

)

 

(4

)

 

(64

)

 

(119

)

 

(84

)

Home Equity

 

(107

)

 

(16

)

 

(273

)

 

(123

)

 

(273

)

Automobile

 

(1,209

)

 

(2,109

)

 

(3,114

)

 

(3,318

)

 

(5,614

)

Other 1

 

(2,422

)

 

(3,914

)

 

(4,176

)

 

(6,336

)

 

(8,140

)

Total Loans and Leases Charged-Off

 

(4,309

)

 

(6,291

)

 

(8,283

)

 

(10,600

)

 

(15,460

)

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

 

144

 

 

112

 

 

1,524

 

 

256

 

 

1,813

 

Commercial Mortgage

 

-

 

 

-

 

 

-

 

 

-

 

 

40

 

Consumer
Residential Mortgage

 

481

 

 

955

 

 

118

 

 

1,436

 

 

381

 

Home Equity

 

527

 

 

533

 

 

321

 

 

1,060

 

 

1,297

 

Automobile

 

1,172

 

 

919

 

 

547

 

 

2,091

 

 

1,552

 

Other 1

 

801

 

 

856

 

 

662

 

 

1,657

 

 

1,526

 

Total Recoveries on Loans and Leases Previously Charged-Off

 

3,125

 

 

3,375

 

 

3,172

 

 

6,500

 

 

6,609

 

Net Charged-Off - Loans and Leases

 

(1,184

)

 

(2,916

)

 

(5,111

)

 

(4,100

)

 

(8,851

)

Net Charged-Off - Accrued Interest Receivable

 

(124

)

 

(308

)

 

-

 

 

(432

)

Provision for Credit Losses:
Loans and Leases

 

(16,774

)

 

(14,993

)

 

40,400

 

 

(31,767

)

 

74,000

 

Accrued Interest Receivable

 

(828

)

 

-

 

 

-

 

 

(828

)

 

-

 

Unfunded Commitments

 

1,502

 

 

693

 

 

(798

)

 

2,195

 

 

(968

)

Balance at End of Period 2

$

186,371

 

$

203,779

 

$

175,958

 

$

186,371

 

$

175,958

 

 
Components
Allowance for Credit Losses - Loans and Leases

$

180,385

 

 

198,343

 

 

173,439

 

$

180,385

 

 

173,439

 

Allowance for Credit Losses - Accrued Interest Receivable

 

1,440

 

 

2,392

 

 

-

 

 

1,440

 

 

-

 

Reserve for Unfunded Commitments

 

4,546

 

 

3,044

 

 

2,519

 

 

4,546

 

 

2,519

 

Total Reserve for Credit Losses

$

186,371

 

$

203,779

 

$

175,958

 

$

186,371

 

$

175,958

 

 
Average Loans and Leases Outstanding

$

12,096,308

 

$

11,952,587

 

$

11,727,649

 

$

12,024,844

 

$

11,394,178

 

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

 

0.04

%

 

0.10

%

 

0.18

%

 

0.07

%

 

0.16

%

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

 

1.50

%

 

1.63

%

 

1.47

%

 

1.50

%

 

1.47

%

1

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

2

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

3

The numerator comprises the Allowance for Credit Losses - Loans and Leases.
Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information Table 13a
Consumer Commercial Treasury Consolidated
(dollars in thousands) Banking Banking and Other Total
Three Months Ended June 30, 2021
Net Interest Income

$

71,167

 

$

49,038

 

$

3,309

 

$

123,514

 

Provision for Credit Losses

 

987

 

 

197

 

 

(17,284

)

 

(16,100

)

Net Interest Income After Provision for Credit Losses

 

70,180

 

 

48,841

 

 

20,593

 

 

139,614

 

Noninterest Income

 

32,600

 

 

6,575

 

 

5,256

 

 

44,431

 

Noninterest Expense

 

(72,868

)

 

(15,742

)

 

(7,917

)

 

(96,527

)

Income Before Income Taxes

 

29,912

 

 

39,674

 

 

17,932

 

 

87,518

 

Provision for Income Taxes

 

(7,365

)

 

(9,703

)

 

(2,917

)

 

(19,985

)

Net Income

$

22,547

 

$

29,971

 

$

15,015

 

$

67,533

 

Total Assets as of June 30, 2021

$

7,479,986

 

$

5,127,431

 

$

10,064,766

 

$

22,672,183

 

 
Three Months Ended June 30, 2020 1
Net Interest Income

$

73,221

 

$

51,219

 

$

2,251

 

$

126,691

 

Provision for Credit Losses

 

6,137

 

 

(1,025

)

 

35,288

 

 

40,400

 

Net Interest Income (Loss) After Provision for Credit Losses

 

67,084

 

 

52,244

 

 

(33,037

)

 

86,291

 

Noninterest Income

 

28,943

 

 

7,076

 

 

15,249

 

 

51,268

 

Noninterest Expense

 

(70,590

)

 

(14,776

)

 

(3,526

)

 

(88,892

)

Income (Loss) Before Income Taxes

 

25,437

 

 

44,544

 

 

(21,314

)

 

48,667

 

Provision for Income Taxes

 

(6,492

)

 

(10,940

)

 

7,673

 

 

(9,759

)

Net Income (Loss)

$

18,945

 

$

33,604

 

$

(13,641

)

$

38,908

 

Total Assets as of June 30, 2020 1

$

7,416,090

 

$

5,033,169

 

$

7,320,683

 

$

19,769,942

 

1

Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information Table 13b
Consumer Commercial Treasury Consolidated
(dollars in thousands) Banking Banking and Other Total
Six Months Ended June 30, 2021
Net Interest Income

$

140,929

 

$

96,181

 

$

6,973

 

$

244,083

 

Provision for Credit Losses

 

3,853

 

 

247

 

 

(34,500

)

 

(30,400

)

Net Interest Income After Provision for Credit Losses

 

137,076

 

 

95,934

 

 

41,473

 

 

274,483

 

Noninterest Income

 

66,298

 

 

14,433

 

 

6,670

 

 

87,401

 

Noninterest Expense

 

(151,049

)

 

(31,419

)

 

(12,924

)

 

(195,392

)

Income Before Income Taxes

 

52,325

 

 

78,948

 

 

35,219

 

 

166,492

 

Provision for Income Taxes

 

(12,839

)

 

(19,261

)

 

(6,910

)

 

(39,010

)

Net Income

$

39,486

 

$

59,687

 

$

28,309

 

$

127,482

 

Total Assets as of June 30, 2021

$

7,479,986

 

$

5,127,431

 

$

10,064,766

 

$

22,672,183

 

 
Six Months Ended June 30, 2020 1
Net Interest Income

$

147,135

 

$

96,456

 

$

9,066

 

$

252,657

 

Provision for Credit Losses

 

9,588

 

 

(735

)

 

65,147

 

 

74,000

 

Net Interest Income (Loss) After Provision for Credit Losses

 

137,547

 

 

97,191

 

 

(56,081

)

 

178,657

 

Noninterest Income

 

61,533

 

 

18,811

 

 

17,073

 

 

97,417

 

Noninterest Expense

 

(141,336

)

 

(32,122

)

 

(11,746

)

 

(185,204

)

Income (Loss) Before Income Taxes

 

57,744

 

 

83,880

 

 

(50,754

)

 

90,870

 

Provision for Income Taxes

 

(14,608

)

 

(20,494

)

 

17,882

 

 

(17,220

)

Net Income (Loss)

$

43,136

 

$

63,386

 

$

(32,872

)

$

73,650

 

Total Assets as of June 30, 2020 1

$

7,416,090

 

$

5,033,169

 

$

7,320,683

 

$

19,769,942

 

1

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

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands, except per share amounts)

2021

2021

2020

2020

2020

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

$

100,894

 

$

99,299

 

$

98,471

 

$

103,189

 

$

107,628

 

Income on Investment Securities
Available-for-Sale

 

16,467

 

 

15,837

 

 

15,449

 

 

14,558

 

 

14,576

 

Held-to-Maturity

 

13,576

 

 

13,300

 

 

14,113

 

 

15,967

 

 

16,723

 

Deposits

 

-

 

 

7

 

 

1

 

 

3

 

 

1

 

Funds Sold

 

260

 

 

137

 

 

115

 

 

149

 

 

92

 

Other

 

182

 

 

185

 

 

167

 

 

151

 

 

125

 

Total Interest Income

 

131,379

 

 

128,765

 

 

128,316

 

 

134,017

 

 

139,145

 

Interest Expense
Deposits

 

4,152

 

 

4,329

 

 

4,861

 

 

5,891

 

 

7,954

 

Securities Sold Under Agreements to Repurchase

 

3,470

 

 

3,533

 

 

3,614

 

 

3,622

 

 

4,020

 

Funds Purchased

 

-

 

 

1

 

 

5

 

 

-

 

 

18

 

Short-Term Borrowings

 

-

 

 

-

 

 

-

 

 

1

 

 

22

 

Other Debt

 

243

 

 

333

 

 

337

 

 

337

 

 

440

 

Total Interest Expense

 

7,865

 

 

8,196

 

 

8,817

 

 

9,851

 

 

12,454

 

Net Interest Income

 

123,514

 

 

120,569

 

 

119,499

 

 

124,166

 

 

126,691

 

Provision for Credit Losses

 

(16,100

)

 

(14,300

)

 

15,200

 

 

28,600

 

 

40,400

 

Net Interest Income After Provision for Credit Losses

 

139,614

 

 

134,869

 

 

104,299

 

 

95,566

 

 

86,291

 

Noninterest Income
Trust and Asset Management

 

11,682

 

 

11,278

 

 

11,239

 

 

10,752

 

 

10,550

 

Mortgage Banking

 

3,058

 

 

5,862

 

 

6,851

 

 

4,047

 

 

4,278

 

Service Charges on Deposit Accounts

 

6,065

 

 

6,128

 

 

6,335

 

 

6,027

 

 

5,097

 

Fees, Exchange, and Other Service Charges

 

13,807

 

 

13,607

 

 

12,143

 

 

12,296

 

 

9,417

 

Investment Securities Gains (Losses), Net

 

2,423

 

 

(1,203

)

 

(1,193

)

 

(1,121

)

 

13,216

 

Annuity and Insurance

 

911

 

 

702

 

 

670

 

 

881

 

 

883

 

Bank-Owned Life Insurance

 

2,063

 

 

1,917

 

 

2,353

 

 

1,806

 

 

1,649

 

Other

 

4,422

 

 

4,679

 

 

6,860

 

 

7,046

 

 

6,178

 

Total Noninterest Income

 

44,431

 

 

42,970

 

 

45,258

 

 

41,734

 

 

51,268

 

Noninterest Expense
Salaries and Benefits

 

56,161

 

 

56,251

 

 

50,200

 

 

51,951

 

 

50,715

 

Net Occupancy

 

5,047

 

 

9,090

 

 

14,536

 

 

7,281

 

 

8,761

 

Net Equipment

 

8,796

 

 

8,878

 

 

9,574

 

 

9,223

 

 

8,195

 

Data Processing

 

4,557

 

 

6,322

 

 

4,604

 

 

4,691

 

 

4,416

 

Professional Fees

 

3,114

 

 

3,406

 

 

3,174

 

 

2,743

 

 

3,061

 

FDIC Insurance

 

1,669

 

 

1,654

 

 

1,484

 

 

1,282

 

 

1,558

 

Other

 

17,183

 

 

13,264

 

 

15,082

 

 

12,778

 

 

12,186

 

Total Noninterest Expense

 

96,527

 

 

98,865

 

 

98,654

 

 

89,949

 

 

88,892

 

Income Before Provision for Income Taxes

 

87,518

 

 

78,974

 

 

50,903

 

 

47,351

 

 

48,667

 

Provision for Income Taxes

 

19,985

 

 

19,025

 

 

8,589

 

 

9,511

 

 

9,759

 

Net Income

$

67,533

 

$

59,949

 

$

42,314

 

$

37,840

 

$

38,908

 

 
Basic Earnings Per Common Share

$

1.69

 

$

1.51

 

$

1.06

 

$

0.95

 

$

0.98

 

Diluted Earnings Per Common Share

$

1.68

 

$

1.50

 

$

1.06