- Diluted Earnings Per Common Share $0.93
- Total Assets $23.8 Billion and Total Deposits $21.0 Billion
at Quarter End
- Net Income $40.4 Million
- Net Interest Margin 2.18%
- Board of Directors Declares Dividend of $0.70 Per Common
Share
Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted
earnings per common share of $0.93 for the third quarter of 2024,
compared with diluted earnings per common share of $0.81 in the
linked quarter and $1.17 in the same period last year. Net income
for the third quarter of 2024 was $40.4 million, up 18.4% from the
linked quarter and down 15.8% from the same period last year. The
return on average common equity for the third quarter of 2024 was
11.50% compared with 10.41% during the linked quarter and 15.38%
during the same period last year.
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“For the third quarter 2024, we are pleased to report improved
net interest income and noninterest income, alongside controlled
expenses and steady loan and deposit performance. Credit remained
excellent,” said Peter Ho, Chairman and CEO.
Financial Highlights
Net interest income for the third quarter of 2024 was $117.6
million, an increase of 2.4% from the linked quarter and a decrease
of 2.7% as compared to the same period last year. The increase from
the previous quarter was primarily due to increases in the average
balance and yield on our earning assets, partially offset by
increases in the average balance and cost of our interest-bearing
liabilities. The decrease from same period last year was primarily
due to decreases in the average balance of our earnings assets and
higher funding costs, partially offset by higher earning asset
yields and lower average balance of our interest-bearing
liabilities.
Net interest margin was 2.18% in the third quarter of 2024, an
increase of 3 basis points from the linked quarter and an increase
of 5 basis points from the same period last year. The increase from
the linked quarter was primarily due to higher earning asset
yields, partially offset by higher funding costs. The increase from
the same period last year was primarily due to higher earning asset
yields and lower average balance of our earning assets, partially
offset by higher funding costs.
The average yield on loans and leases was 4.82% in the third
quarter of 2024, up 6 basis points from the linked quarter and up
48 basis points from the same period last year. The average yield
on total earning assets was 4.06% in the third quarter of 2024, up
7 basis points from the linked quarter and up 34 basis points from
the same period last year. The average cost of interest-bearing
deposits was 2.52% in the third quarter of 2024, up 6 basis points
from the linked quarter and up 57 basis points from the same period
last year. The average cost of total deposits, including
noninterest-bearing deposits, was 1.87%, up 6 basis points from the
linked quarter and up 47 basis points from the same period last
year. The changes in yields and rates over the linked quarter and
year over year period reflected deposit mix shift and
repricing.
Noninterest income was $45.1 million in the third quarter of
2024, an increase of 7.2% from the linked quarter and a decrease of
10.4% from the same period in 2023. Noninterest income in the third
quarter of 2023 included a $14.7 million gain from the early
termination of private repurchase agreements, partially offset by a
$4.6 million net loss related to investment securities sales and a
negative $0.8 million adjustment related to a change in the Visa
Class B conversion ratio. Adjusted for these items, noninterest
income increased by 9.9% from adjusted noninterest income in the
same period in 2023. The increase from the same period last year
was primarily due to increases in trust and asset management
income, and fees, exchange, and other service charges.
Noninterest expense was $107.1 million in the third quarter of
2024, a decrease of 2.0% from the linked quarter and an increase of
1.4% from the same period last year. Noninterest expense in the
second quarter of 2024 included an industry-wide FDIC Special
Assessment of $2.6 million, separation expenses of $0.8 million and
$0.6 million of other expenses that are not expected to recur in
2024. Noninterest expense in the third quarter of 2023 included
separation expenses of $2.1 million and extraordinary expenses
related to the Maui wildfires of $0.4 million. Adjusted for these
items, noninterest expense increased by 1.7% from adjusted
noninterest expense in the linked quarter and increased by 3.9%
from adjusted noninterest expense in the same period last year.
The effective tax rate for the third quarter of 2024 was 23.33%
compared with 24.77% during the linked quarter and 24.76% during
the same period last year. The lower effective tax rate in the
third quarter of 2024 as compared to the linked quarter was mainly
due to a decrease in discrete items and an increase in tax exempt
income. The lower effective tax rate in the third quarter of 2024
as compared to the same period last year was primarily due to an
increase in tax benefits from low-income housing investments and an
increase in tax exempt income.
Asset Quality
The Company’s overall asset quality remained strong during the
third quarter of 2024. Provision for credit losses for the third
quarter of 2024 was $3.0 million compared with $2.4 million in the
linked quarter and $2.0 million in the same period last year.
Total non-performing assets were $19.8 million at September 30,
2024, up $4.6 million from June 30, 2024 and up $8.3 million from
September 30, 2023. Non-performing assets as a percentage of total
loans and leases and foreclosed real estate were 0.14% at the end
of the quarter, an increase of 3 basis points from the linked
quarter and an increase of 6 basis points from the same period last
year.
Net loan and lease charge-offs during the third quarter of 2024
were $3.8 million or 11 basis points annualized of total average
loans and leases outstanding and comprised of gross charge-offs of
$5.3 million partially offset by gross recoveries of $1.5 million.
Compared to the linked quarter, net loan and lease charge-offs
increased by $0.4 million or 1 basis point annualized on total
average loans and leases outstanding. Compared to the same period
last year, net loan and lease charge-offs increased by $1.8 million
or 5 basis points annualized on total average loans and leases
outstanding.
The allowance for credit losses on loans and leases was $147.3
million at September 30, 2024, a decrease of $0.1 million from June
30, 2024 and an increase of $2.1 million from September 30, 2023.
The ratio of the allowance for credit losses to total loans and
leases outstanding was 1.06% at the end of the quarter, down 1
basis point from the linked quarter and up 2 basis points from the
same period last year.
Balance Sheet
Total assets were $23.8 billion at September 30, 2024, an
increase of 2.1% from June 30, 2024 and an increase of 1.1% from
September 30, 2023. The increase from the prior periods was
primarily due to an increase in federal funds sold.
The investment securities portfolio was $7.3 billion at
September 30, 2024, an increase of 2.1% from June 30, 2024 and a
decrease of 2.9% from September 30, 2023. This linked quarter
increase was primarily due to the purchases of $236.1 million of
floating rate investment securities partially offset by cashflows
from the portfolio. The decrease from the same period last year was
primarily due to the sale of $159.1 million of investment
securities in the third quarter of 2023 and cashflows from the
portfolio, partially offset by the above-mentioned purchase of
investment securities in the third quarter of 2024. The investment
portfolio remains largely comprised of securities issued by U.S.
government agencies and U.S. government-sponsored enterprises.
Total loans and leases were $13.9 billion at September 30, 2024,
an increase of 0.6% from June 30, 2024 and flat from September 30,
2023. Total commercial loans were $5.9 billion at September 30,
2024, an increase of 2.0% from June 30, 2024 and an increase of
4.4% from September 30, 2023. The increase from the linked quarter
was primarily due to an increase in commercial mortgage portfolio.
The increase from the same period last year was primarily due to
increases in commercial mortgage, construction and commercial and
industrial portfolios. Total consumer loans were $8.0 billion at
September 30, 2024, a decrease of 0.3% from the linked quarter and
a decrease of 3.1% from the same period last year. The decrease
from the linked quarter was primarily due to decreases in our home
equity and automobile portfolios, partially offset by an increase
in residential mortgage portfolio. The decrease from the same
period last year was primarily due to decreases in our residential
mortgage, home equity and automobile portfolios.
Total deposits were $21.0 billion at September 30, 2024, an
increase of 2.8% from June 30, 2024 and an increase of 0.8% from
September 30, 2023. Noninterest-bearing deposits made up 25.8% of
total deposit balances at September 30, 2024, down from 26.3% at
June 30, 2024 and down from 27.3% at September 30, 2023. Average
total deposits were $20.5 billion for the third quarter of 2024, up
0.6% from $20.4 billion in the linked quarter and flat from the
same period last year. Insured and uninsured but collateralized
deposits represented 58% of total deposit balances at September 30,
2024, down from 59% at June 30, 2024 and flat from September 30,
2023. At the end of the quarter, our readily available liquidity of
$10.6 billion exceeded total uninsured and uncollateralized
deposits of $8.8 billion.
Capital and Dividends
The Company’s capital levels increased quarter over quarter and
remain well above regulatory well-capitalized minimums.
The Tier 1 Capital Ratio was 14.05% at September 30, 2024
compared with 13.96% at June 30, 2024 and 12.53% at September 30,
2023. The Tier 1 Leverage Ratio was 8.38% at September 30, 2024, up
1 basis point from 8.37% at June 30, 2024 and up 116 basis points
from 7.22% at September 30, 2023. The increases from the linked
quarter were due to retained earnings growth and partially offset
by increases in risk-weighted assets and average total assets. The
increases from the same period last year were primarily due to the
issuance of $165.0 million of Fixed Rate Non-Cumulative Perpetual
Preferred Stock, Series B, at a rate of 8.00% in the second quarter
of 2024.
No shares of common stock were repurchased under the share
repurchase program in the third quarter of 2024. Total remaining
buyback authority under the share repurchase program was $126.0
million at September 30, 2024.
The Company’s Board of Directors declared a quarterly cash
dividend of $0.70 per share on the Company’s outstanding common
shares. The dividend will be payable on December 13, 2024 to
shareholders of record at the close of business on November 29,
2024.
On October 4, 2024, the Company announced that the Board of
Directors declared a quarterly dividend payment of $10.94 per
share, equivalent to $0.2735 per depositary share, of Fixed Rate
Non-Cumulative Perpetual Preferred Stock, Series A, and a quarterly
dividend payment of $20.00 per share, equivalent to $0.5000 per
depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred
Stock, Series B. The depositary shares representing the Series A
Preferred Stock and Series B Preferred Stock are traded on the NYSE
under the symbol “BOH.PRA” and “BOH.PRB”, respectively. The
dividends on the Series A Preferred Stock and Series B Preferred
Stock will be payable on November 1, 2024 to shareholders of record
of the preferred stock as of the close of business on October 17,
2024.
Conference Call
Information
The Company will review its third quarter financial results
today at 8:00 a.m. Hawai‘i Time (2:00 p.m. Eastern Time). The live
call, including a slide presentation, will be accessible on the
investor relations link of Bank of Hawai‘i Corporation's website,
www.boh.com. The webcast can be accessed via the link:
https://register.vevent.com/register/BIe5723fafb08d499d83a299d646fa683d.
A replay of the conference call will be available for one year
beginning approximately 11:00 a.m. Hawai‘i Time on Monday, October
28, 2024. The replay will be available on the Company's website,
www.boh.com.
Investor Announcements
Investors and others should note that the Company intends to
announce financial and other information to the Company’s investors
using the Company’s investor relations website at
https://ir.boh.com, social media channels, press releases, SEC
filings and public conference calls and webcasts, all for purposes
of complying with the Company’s disclosure obligations under
Regulation FD. Accordingly, investors should monitor these
channels, as information is updated, and new information is
posted.
Forward-Looking
Statements
This news release, and other statements made by the Company in
connection with it may contain "forward-looking statements" (as
defined in the Private Securities Litigation Reform Act of 1995)
that involve risks and uncertainties that could cause results to be
materially different from expectations. Forecasts of our financial
results and condition, expectations for our operations and business
prospects, and our assumptions used in those forecasts and
expectations are examples of certain of these forward-looking
statements. Do not unduly rely on forward-looking statements.
Actual results might differ significantly from our forecasts and
expectations because of a variety of factors. More information
about these factors is contained in Bank of Hawai‘i Corporation's
Annual Report on Form 10-K for the year ended December 31, 2023 and
its Form 10-Q for fiscal quarters ended March 31, 2024 and June 30,
2024, which were filed with the U.S. Securities and Exchange
Commission. These forward-looking statements are not guarantees of
future performance and speak only as of the date made, and, except
as required by law, the Company undertakes no obligation to update
or revise any forward-looking statements to reflect subsequent
events, new information or future circumstances.
Bank of Hawai‘i Corporation is an independent regional financial
services company serving businesses, consumers, and governments in
Hawai‘i and the West Pacific. The Company’s principal subsidiary,
Bank of Hawai‘i, was founded in 1897. For more information about
Bank of Hawai‘i Corporation, see the Company’s website,
www.boh.com. Bank of Hawai‘i Corporation is a trade name of Bank of
Hawaii Corporation.
Bank of Hawai‘i Corporation and Subsidiaries
Financial Highlights
Table 1
Three Months Ended Nine Months Ended September
30, June 30, September 30, September 30,
(dollars in thousands, except per share amounts)
2024
2024
2023
2024
2023
For the Period: Operating
Results Net Interest Income
$
117,618
$
114,846
$
120,937
$
346,402
$
381,240
Provision for Credit Losses
3,000
2,400
2,000
7,400
6,500
Total Noninterest Income
45,110
42,087
50,334
129,482
134,326
Total Noninterest Expense
107,092
109,226
105,601
322,177
321,556
Pre-Provision Net Revenue
55,636
47,707
65,670
153,707
194,010
Net Income
40,358
34,083
47,903
110,832
140,806
Net Income Available to Common Shareholders 1
36,922
32,114
45,934
103,458
134,899
Basic Earnings Per Common Share
0.94
0.81
1.17
2.62
3.44
Diluted Earnings Per Common Share
0.93
0.81
1.17
2.61
3.42
Dividends Declared Per Common Share
0.70
0.70
0.70
2.10
2.10
Performance Ratios Return on Average Assets
0.69
%
0.59
%
0.78
%
0.64
%
0.78
%
Return on Average Shareholders' Equity
9.90
9.53
13.92
9.92
13.91
Return on Average Common Equity
11.50
10.41
15.38
11.04
15.37
Efficiency Ratio 2
65.81
69.60
61.66
67.70
62.37
Net Interest Margin 3
2.18
2.15
2.13
2.15
2.27
Dividend Payout Ratio 4
74.47
86.42
59.83
80.15
61.05
Average Shareholders' Equity to Average Assets
6.95
6.22
5.60
6.42
5.61
Average Balances Average Loans and Leases
$
13,809,977
$
13,831,797
$
13,903,214
$
13,836,760
$
13,833,164
Average Assets
23,338,529
23,145,107
24,387,421
23,255,372
24,124,360
Average Deposits
20,484,391
20,358,393
20,492,082
20,462,222
20,314,079
Average Shareholders' Equity
1,621,936
1,438,476
1,365,143
1,492,645
1,353,815
Per Share of Common Stock Book Value
$
33.22
$
31.91
$
29.78
$
33.22
$
29.78
Tangible Book Value
32.43
31.12
28.99
32.43
28.99
Market Value Closing
62.77
57.21
49.69
62.77
49.69
High
70.44
62.53
58.63
73.73
81.73
Low
55.75
54.50
39.02
54.50
30.83
September 30, June 30, December 31,
September 30,
2024
2024
2023
2023
As of Period End: Balance
Sheet Totals Loans and Leases
$
13,918,583
$
13,831,266
$
13,965,026
$
13,919,491
Total Assets
23,799,174
23,300,768
23,733,296
23,549,785
Total Deposits
20,978,322
20,408,502
21,055,045
20,802,309
Other Debt
558,297
560,136
560,190
560,217
Total Shareholders' Equity
1,665,474
1,612,849
1,414,242
1,363,840
Asset Quality Non-Performing Assets
$
19,781
$
15,179
$
11,747
$
11,519
Allowance for Credit Losses - Loans and Leases
147,331
147,477
146,403
145,263
Allowance to Loans and Leases Outstanding 5
1.06
%
1.07
%
1.05
%
1.04
%
Capital Ratios 6 Common Equity Tier 1 Capital Ratio 7
11.66
%
11.56
%
11.33
%
11.29
%
Tier 1 Capital Ratio 7
14.05
13.96
12.56
12.53
Total Capital Ratio 7
15.11
15.02
13.60
13.56
Tier 1 Leverage Ratio
8.38
8.37
7.51
7.22
Total Shareholders' Equity to Total Assets
7.00
6.92
5.96
5.79
Tangible Common Equity to Tangible Assets 8
5.42
5.31
5.07
4.90
Tangible Common Equity to Risk-Weighted Assets 7, 8
9.17
8.80
8.45
8.10
Non-Financial Data Full-Time Equivalent Employees
1,854
1,910
1,899
1,919
Branches
50
50
51
51
ATMs
317
317
318
320
1 Due to rounding, the amounts presented in this table may
not tie to other amounts presented elsewhere in this report. 2
Efficiency ratio is defined as noninterest expense divided by total
revenue (net interest income and total noninterest income). 3 Net
interest margin is defined as net interest income, on a
taxable-equivalent basis, as a percentage of average earning
assets. 4 Dividend payout ratio is defined as dividends declared
per common share divided by basic earnings per common share. 5 The
numerator comprises the Allowance for Credit Losses - Loans and
Leases. 6 Regulatory capital ratios as of September 30, 2024 are
preliminary. 7 Regulatory capital ratios for June 30, 2024 have
been updated to reflect final reported ratios. 8 Tangible common
equity to tangible assets and tangible common equity to
risk-weighted assets are Non-GAAP financial measures. Tangible
common equity is defined by the Company as common shareholders'
equity minus goodwill. See Table 2 "Reconciliation of Non-GAAP
Financial Measures".
Bank of Hawai‘i Corporation and
Subsidiaries Reconciliation of Non-GAAP Financial
Measures Table 2 September 30, June 30,
December 31, September 30, (dollars in thousands)
2024
2024
2023
2023
Total Shareholders' Equity
$
1,665,474
$
1,612,849
$
1,414,242
$
1,363,840
Less: Preferred Stock
345,000
345,000
180,000
180,000
Goodwill
31,517
31,517
31,517
31,517
Tangible Common Equity
$
1,288,957
$
1,236,332
$
1,202,725
$
1,152,323
Total Assets
$
23,799,174
$
23,300,768
$
23,733,296
$
23,549,785
Less: Goodwill
31,517
31,517
31,517
31,517
Tangible Assets
$
23,767,657
$
23,269,251
$
23,701,779
$
23,518,268
Risk-Weighted Assets, determined in accordance with
prescribed regulatory requirements 1, 2
$
14,054,698
$
14,051,627
$
14,226,780
$
14,222,825
Total Shareholders' Equity to Total Assets
7.00
%
6.92
%
5.96
%
5.79
%
Tangible Common Equity to Tangible Assets (Non-GAAP)
5.42
%
5.31
%
5.07
%
4.90
%
Tier 1 Capital Ratio 1, 2
14.05
%
13.96
%
12.56
%
12.53
%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1, 2
9.17
%
8.80
%
8.45
%
8.10
%
1 Regulatory capital ratios as of September 30, 2024 are
preliminary. 2 Regulatory capital ratios for June 30, 2024 have
been updated to reflect final reported ratios.
Bank of
Hawai‘i Corporation and Subsidiaries Consolidated Statements
of Income Table 3 Three Months Ended Nine
Months Ended September 30, June 30, September
30, September 30, (dollars in thousands, except per
share amounts)
2024
2024
2023
2024
2023
Interest Income Interest and Fees on Loans and Leases
$
166,286
$
163,208
$
151,245
$
488,830
$
432,287
Income on Investment Securities Available-for-Sale
23,257
21,468
23,552
66,482
70,746
Held-to-Maturity
21,107
21,595
22,838
64,838
70,161
Deposits
29
25
18
84
63
Funds Sold
8,951
6,114
12,828
21,192
22,589
Other
1,018
1,120
1,464
3,108
4,182
Total Interest Income
220,648
213,530
211,945
644,534
600,028
Interest Expense Deposits
96,067
91,542
72,153
276,665
163,726
Securities Sold Under Agreements to Repurchase
993
1,180
4,034
3,616
14,847
Funds Purchased
-
44
-
44
888
Short-Term Borrowings
-
-
-
-
5,713
Other Debt
5,970
5,918
14,821
17,807
33,614
Total Interest Expense
103,030
98,684
91,008
298,132
218,788
Net Interest Income
117,618
114,846
120,937
346,402
381,240
Provision for Credit Losses
3,000
2,400
2,000
7,400
6,500
Net Interest Income After Provision for Credit Losses
114,618
112,446
118,937
339,002
374,740
Noninterest Income Fees, Exchange, and Other Service Charges
14,945
13,769
13,824
42,837
41,782
Trust and Asset Management
11,916
12,223
10,548
35,328
32,453
Service Charges on Deposit Accounts
8,075
7,730
7,843
23,752
23,167
Bank-Owned Life Insurance
3,533
3,396
2,749
10,285
8,467
Annuity and Insurance
1,460
1,583
1,156
4,089
3,465
Mortgage Banking
1,188
1,028
1,059
3,167
3,239
Investment Securities Losses, Net
(1,103
)
(1,601
)
(6,734
)
(4,201
)
(9,836
)
Other
5,096
3,959
19,889
14,225
31,589
Total Noninterest Income
45,110
42,087
50,334
129,482
134,326
Noninterest Expense Salaries and Benefits
58,626
57,033
58,825
173,874
180,088
Net Occupancy
10,806
10,559
10,327
31,821
30,190
Net Equipment
10,120
10,355
9,477
30,578
30,425
Professional Fees
4,725
4,929
3,846
14,331
12,380
Data Processing
4,712
4,745
4,706
14,227
13,888
FDIC Insurance
3,355
7,170
3,361
14,139
9,768
Other
14,748
14,435
15,059
43,207
44,817
Total Noninterest Expense
107,092
109,226
105,601
322,177
321,556
Income Before Provision for Income Taxes
52,636
45,307
63,670
146,307
187,510
Provision for Income Taxes
12,278
11,224
15,767
35,475
46,704
Net Income
$
40,358
$
34,083
$
47,903
$
110,832
$
140,806
Preferred Stock Dividends
3,436
1,969
1,969
7,375
5,908
Net Income Available to Common Shareholders
$
36,922
$
32,114
$
45,934
$
103,457
$
134,898
Basic Earnings Per Common Share
$
0.94
$
0.81
$
1.17
$
2.62
$
3.44
Diluted Earnings Per Common Share
$
0.93
$
0.81
$
1.17
$
2.61
$
3.42
Dividends Declared Per Common Share
$
0.70
$
0.70
$
0.70
$
2.10
$
2.10
Basic Weighted Average Common Shares
39,488,187
39,450,551
39,274,626
39,429,815
39,264,450
Diluted Weighted Average Common Shares
39,736,492
39,618,705
39,420,531
39,654,705
39,392,433
Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income Table
4 Three Months Ended Nine Months Ended
September 30, June 30, September 30,
September 30, (dollars in thousands)
2024
2024
2023
2024
2023
Net Income
$
40,358
$
34,083
$
47,903
$
110,832
$
140,806
Other Comprehensive Income (Loss), Net of Tax: Net Unrealized Gains
(Losses) on Investment Securities
38,833
9,052
(18,264
)
60,823
(7,205
)
Defined Benefit Plans
168
168
84
505
252
Other Comprehensive Income (Loss)
39,001
9,220
(18,180
)
61,328
(6,953
)
Comprehensive Income
$
79,359
$
43,303
$
29,723
$
172,160
$
133,853
Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Condition Table 5
September 30, June 30, December 31,
September 30, (dollars in thousands, except share amounts)
2024
2024
2023
2023
Assets Interest-Bearing Deposits in Other Banks
$
8,287
$
3,259
$
2,761
$
4,676
Funds Sold
992,854
624,089
690,112
386,086
Investment Securities Available-for-Sale
2,550,324
2,298,092
2,408,933
2,387,324
Held-to-Maturity (Fair Value of $4,072,596; $4,002,122; $4,253,637;
and $4,104,469)
4,710,245
4,812,954
4,997,335
5,088,013
Loans Held for Sale
5,048
2,664
3,124
1,450
Loans and Leases
13,918,583
13,831,266
13,965,026
13,919,491
Allowance for Credit Losses
(147,331
)
(147,477
)
(146,403
)
(145,263
)
Net Loans and Leases
13,771,252
13,683,789
13,818,623
13,774,228
Total Earning Assets
22,038,010
21,424,847
21,920,888
21,641,777
Cash and Due from Banks
271,622
297,990
308,071
261,464
Premises and Equipment, Net
191,899
192,319
194,855
196,094
Operating Lease Right-of-Use Assets
81,736
84,757
86,110
86,896
Accrued Interest Receivable
66,534
67,554
66,525
65,541
Foreclosed Real Estate
2,667
2,672
2,098
1,040
Mortgage Servicing Rights
19,571
19,954
20,880
21,273
Goodwill
31,517
31,517
31,517
31,517
Bank-Owned Life Insurance
475,263
470,708
462,894
458,260
Other Assets
620,355
708,450
639,458
785,923
Total Assets
$
23,799,174
$
23,300,768
$
23,733,296
$
23,549,785
Liabilities Deposits Noninterest-Bearing Demand
$
5,412,048
$
5,371,593
$
6,058,554
$
5,687,442
Interest-Bearing Demand
3,734,601
3,928,295
3,749,717
3,925,469
Savings
8,663,147
8,207,902
8,189,472
8,530,384
Time
3,168,526
2,900,712
3,057,302
2,659,014
Total Deposits
20,978,322
20,408,502
21,055,045
20,802,309
Securities Sold Under Agreements to Repurchase
100,490
100,490
150,490
150,490
Other Debt
558,297
560,136
560,190
560,217
Operating Lease Liabilities
90,356
93,364
94,693
95,453
Retirement Benefits Payable
22,870
23,142
23,673
26,074
Accrued Interest Payable
40,434
37,278
41,023
33,434
Taxes Payable
1,722
5,289
7,636
6,965
Other Liabilities
341,209
459,718
386,304
511,003
Total Liabilities
22,133,700
21,687,919
22,319,054
22,185,945
Shareholders' Equity Preferred Stock (Series A, $.01 par
value; authorized 180,000 shares issued and outstanding)
180,000
180,000
180,000
180,000
Preferred Stock (Series B, $.01 par value; authorized 165,000
shares issued and outstanding)
165,000
165,000
-
-
Common Stock ($.01 par value; authorized 500,000,000 shares; issued
/ outstanding: September 30, 2024 - 58,765,907 / 39,748,304; June
30, 2024 - 58,765,907 / 39,729,941; December 31, 2023 - 58,755,465
/ 39,753,138; and September 30, 2023 - 58,767,820 / 39,748,700)
585
585
583
583
Capital Surplus
643,620
639,841
636,422
632,425
Accumulated Other Comprehensive Loss
(335,360
)
(374,361
)
(396,688
)
(441,611
)
Retained Earnings
2,127,585
2,119,140
2,107,569
2,108,702
Treasury Stock, at Cost (Shares: September 30, 2024 - 19,017,603;
June 30, 2024 - 19,035,966; December 31, 2023 - 19,002,327; and
September 30, 2023 - 19,019,120)
(1,115,956
)
(1,117,356
)
(1,113,644
)
(1,116,259
)
Total Shareholders' Equity
1,665,474
1,612,849
1,414,242
1,363,840
Total Liabilities and Shareholders' Equity
$
23,799,174
$
23,300,768
$
23,733,296
$
23,549,785
Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity Table
6 Accumulated Preferred Preferred
Other Shares Preferred Shares
Preferred Common Comprehensive Series A
Series A Series B Series B Shares
Common Capital Income Retained
Treasury (dollars in thousands, except share amounts)
Outstanding Stock Outstanding Stock
Outstanding Stock Surplus (Loss)
Earnings Stock Total Balance as of December
31, 2023
180,000
$
180,000
-
$
-
39,753,138
$
583
$
636,422
$
(396,688
)
$
2,107,569
$
(1,113,644
)
$
1,414,242
Net Income
-
-
-
-
-
-
-
-
110,832
-
110,832
Other Comprehensive Income
-
-
-
-
-
-
-
61,328
-
-
61,328
Share-Based Compensation
-
-
-
-
-
-
11,051
-
-
-
11,051
Preferred Stock Issued, Net
-
-
165,000
165,000
-
-
(4,386
)
-
-
-
160,614
Common Stock Issued under Purchase and Equity Compensation Plans
-
-
-
-
78,753
2
533
-
768
2,829
4,132
Common Stock Repurchased
-
-
-
-
(83,587
)
-
-
-
-
(5,141
)
(5,141
)
Cash Dividends Declared Common Stock ($2.10 per share)
-
-
-
-
-
-
-
-
(84,209
)
-
(84,209
)
Cash Dividends Declared Preferred Stock
-
-
-
-
-
-
-
-
(7,375
)
-
(7,375
)
Balance as of September 30, 2024
180,000
$
180,000
165,000
$
165,000
39,748,304
$
585
$
643,620
$
(335,360
)
$
2,127,585
$
(1,115,956
)
$
1,665,474
Balance as of December 31, 2022
180,000
$
180,000
-
$
-
39,835,750
$
582
$
620,578
$
(434,658
)
$
2,055,912
$
(1,105,419
)
$
1,316,995
Net Income
-
-
-
-
-
-
-
-
140,806
-
140,806
Other Comprehensive Loss
-
-
-
-
-
-
-
(6,953
)
-
-
(6,953
)
Share-Based Compensation
-
-
-
-
-
-
11,979
-
-
-
11,979
Common Stock Issued under Purchase and Equity Compensation Plans
-
-
-
-
121,040
1
(132
)
-
1,716
3,216
4,801
Common Stock Repurchased
-
-
-
-
(208,090
)
-
-
-
-
(14,056
)
(14,056
)
Cash Dividends Declared Common Stock ($2.10 per share)
-
-
-
-
-
-
-
-
(83,824
)
-
(83,824
)
Cash Dividends Declared Preferred Stock
-
-
-
-
-
-
-
-
(5,908
)
-
(5,908
)
Balance as of September 30, 2023
180,000
$
180,000
-
$
-
39,748,700
$
583
$
632,425
$
(441,611
)
$
2,108,702
$
(1,116,259
)
$
1,363,840
Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis
1 Table 7a Three Months Ended Three Months
Ended Three Months Ended September 30, 2024
June 30, 2024 September 30, 2023 Average
Income / Yield / Average Income /
Yield / Average Income / Yield /
(dollars in millions)
Balance Expense 2 Rate
Balance Expense 2 Rate Balance
Expense 2 Rate Earning Assets Interest-Bearing
Deposits in Other Banks
$
4.0
$
0.0
2.89
%
$
4.3
$
0.0
2.40
%
$
2.9
$
0.0
2.40
%
Funds Sold
663.8
9.0
5.28
455.8
6.1
5.31
944.8
12.8
5.31
Investment Securities Available-for-Sale Taxable
2,430.0
23.0
3.80
2,308.3
21.5
3.73
2,605.4
23.5
3.60
Non-Taxable
11.8
0.2
6.63
1.6
0.0
2.01
3.5
0.0
3.21
Held-to-Maturity Taxable
4,735.5
21.0
1.77
4,837.2
21.4
1.77
5,118.6
22.7
1.77
Non-Taxable
34.4
0.2
2.10
34.6
0.2
2.10
35.0
0.2
2.10
Total Investment Securities
7,211.7
44.4
2.46
7,181.7
43.1
2.40
7,762.5
46.4
2.39
Loans Held for Sale
3.8
0.1
6.13
1.4
0.0
6.30
3.8
0.1
6.28
Loans and Leases 3 Commercial and Industrial
1,658.1
22.6
5.43
1,683.2
22.3
5.34
1,515.0
18.9
4.96
Paycheck Protection Program
7.2
0.0
1.42
9.5
0.1
2.24
13.1
0.0
1.32
Commercial Mortgage
3,744.6
52.0
5.51
3,723.6
51.6
5.57
3,792.6
51.1
5.35
Construction
357.3
7.1
7.95
321.3
6.3
7.85
241.9
3.7
6.09
Commercial Lease Financing
59.6
0.4
2.58
59.3
0.3
2.28
62.6
0.3
1.84
Residential Mortgage
4,593.7
46.4
4.03
4,595.2
45.6
3.97
4,715.3
42.8
3.62
Home Equity
2,206.9
22.4
4.04
2,231.7
21.8
3.92
2,283.5
20.1
3.49
Automobile
795.7
9.4
4.72
813.5
9.1
4.52
868.0
8.2
3.75
Other 4
386.9
6.9
7.13
394.5
6.8
6.95
411.2
6.5
6.24
Total Loans and Leases
13,810.0
167.2
4.82
13,831.8
163.9
4.76
13,903.2
151.6
4.34
Other
63.2
0.9
6.43
62.5
1.2
7.18
91.6
1.5
6.40
Total Earning Assets
21,756.5
221.7
4.06
21,537.5
214.3
3.99
22,708.8
212.4
3.72
Cash and Due from Banks
258.8
233.4
289.8
Other Assets
1,323.2
1,374.2
1,388.8
Total Assets
$
23,338.5
$
23,145.1
$
24,387.4
Interest-Bearing Liabilities Interest-Bearing
Deposits Demand
$
3,775.6
8.9
0.94
$
3,788.5
8.8
0.94
$
3,929.7
6.6
0.67
Savings
8,402.9
55.7
2.63
8,259.2
52.0
2.53
7,952.6
39.1
1.95
Time
3,008.7
31.5
4.17
2,935.9
30.7
4.20
2,767.8
26.5
3.79
Total Interest-Bearing Deposits
15,187.2
96.1
2.52
14,983.6
91.5
2.46
14,650.1
72.2
1.95
Funds Purchased
0.0
0.0
5.40
3.2
0.0
5.37
-
-
-
Short-Term Borrowings
0.0
0.0
5.40
0.0
0.0
5.40
-
-
-
Securities Sold Under Agreements to Repurchase
100.5
1.0
3.87
121.9
1.2
3.83
528.5
4.0
2.99
Other Debt
560.1
5.9
4.24
560.2
6.0
4.25
1,365.7
14.8
4.31
Total Interest-Bearing Liabilities
15,847.8
103.0
2.59
15,668.9
98.7
2.53
16,544.3
91.0
2.18
Net Interest Income
$
118.7
$
115.6
$
121.4
Interest Rate Spread
1.47
%
1.46
%
1.54
%
Net Interest Margin
2.18
%
2.15
%
2.13
%
Noninterest-Bearing Demand Deposits
5,297.2
5,374.8
5,842.0
Other Liabilities
571.6
662.9
636.0
Shareholders' Equity
1,621.9
1,438.5
1,365.1
Total Liabilities and Shareholders' Equity
$
23,338.5
$
23,145.1
$
24,387.4
1 Due to rounding, the amounts presented in this table may
not tie to other amounts presented elsewhere in this report. 2
Interest income includes taxable-equivalent basis adjustments,
based upon a federal statutory tax rate of 21%, of $1.0 million,
$774 thousand, and $437 thousand for the three months ended
September 30, 2024, June 30, 2024, and September 30, 2023,
respectively. 3 Non-performing loans and leases are included in the
respective average loan and lease balances. Income, if any, on such
loans and leases is recognized on a cash basis. 4 Comprised of
other consumer revolving credit, installment, and consumer lease
financing.
Bank of Hawai‘i Corporation and
Subsidiaries Average Balances and Interest Rates -
Taxable-Equivalent Basis 1 Table 7b Nine Months
Ended Nine Months Ended September 30, 2024
September 30, 2023 Average Income / Yield
/ Average Income / Yield / (dollars in
millions)
Balance Expense 2 Rate
Balance Expense 2 Rate Earning Assets
Interest-Bearing Deposits in Other Banks
$
4.3
$
0.1
2.59
%
$
3.2
$
0.1
2.60
%
Funds Sold
525.7
21.2
5.30
582.7
22.6
5.11
Investment Securities Available-for-Sale Taxable
2,373.1
66.4
3.73
2,721.5
70.6
3.46
Non-Taxable
5.0
0.2
5.59
7.6
0.2
4.22
Held-to-Maturity Taxable
4,832.9
64.4
1.78
5,227.8
69.7
1.78
Non-Taxable
34.6
0.5
2.10
35.2
0.6
2.10
Total Investment Securities
7,245.6
131.5
2.42
7,992.1
141.1
2.36
Loans Held for Sale
2.5
0.1
6.16
2.7
0.1
5.82
Loans and Leases 3 Commercial and Industrial
1,664.5
67.0
5.38
1,461.2
52.7
4.82
Paycheck Protection Program
9.1
0.1
1.70
14.8
0.2
1.70
Commercial Mortgage
3,728.3
153.9
5.52
3,781.7
145.6
5.15
Construction
329.0
19.0
7.71
256.2
11.1
5.81
Commercial Lease Financing
59.1
1.0
2.25
64.9
0.5
1.11
Residential Mortgage
4,613.0
137.0
3.96
4,695.4
123.8
3.51
Home Equity
2,229.5
65.3
3.91
2,265.2
57.3
3.38
Automobile
813.3
27.5
4.51
873.0
23.2
3.55
Other 4
391.0
20.2
6.91
420.8
19.0
6.04
Total Loans and Leases
13,836.8
491.0
4.74
13,833.2
433.4
4.19
Other
62.6
3.1
6.61
84.6
4.1
6.59
Total Earning Assets
21,677.5
647.0
3.98
22,498.5
601.4
3.57
Cash and Due from Banks
244.4
308.4
Other Assets
1,333.5
1,317.5
Total Assets
$
23,255.4
$
24,124.4
Interest-Bearing Liabilities Interest-Bearing
Deposits Demand
$
3,776.1
25.4
0.90
$
4,060.0
19.3
0.64
Savings
8,264.9
157.1
2.54
7,876.1
86.3
1.46
Time
3,008.6
94.2
4.18
2,288.2
58.1
3.40
Total Interest-Bearing Deposits
15,049.6
276.7
2.46
14,224.3
163.7
1.54
Funds Purchased
1.1
0.0
5.37
24.8
0.9
4.72
Short-Term Borrowings
0.0
0.0
5.40
152.4
5.7
4.94
Securities Sold Under Agreements to Repurchase
124.2
3.6
3.82
659.1
14.8
2.97
Other Debt
560.2
17.8
4.25
1,043.6
33.7
4.31
Total Interest-Bearing Liabilities
15,735.1
298.1
2.53
16,104.2
218.8
1.81
Net Interest Income
$
348.8
$
382.6
Interest Rate Spread
1.45
%
1.76
%
Net Interest Margin
2.15
%
2.27
%
Noninterest-Bearing Demand Deposits
5,412.6
6,089.8
Other Liabilities
615.1
576.6
Shareholders' Equity
1,492.6
1,353.8
Total Liabilities and Shareholders' Equity
$
23,255.4
$
24,124.4
1 Due to rounding, the amounts presented in this table may
not tie to other amounts presented elsewhere in this report. 2
Interest income includes taxable-equivalent basis adjustments,
based upon a federal statutory tax rate of 21%, of $2.5 million and
$1.4 million for the nine months ended September 30, 2024 and
September 30, 2023, respectively. 3 Non-performing loans and leases
are included in the respective average loan and lease balances.
Income, if any, on such loans and leases is recognized on a cash
basis. 4 Comprised of other consumer revolving credit, installment,
and consumer lease financing.
Bank of Hawai‘i Corporation
and Subsidiaries Analysis of Change in Net Interest Income -
Taxable-Equivalent Basis Table 8a Three Months Ended
September 30, 2024 Compared to June 30, 2024 (dollars in
millions)
Volume 1 Rate 1 Total Change in
Interest Income: Interest-Bearing Deposits in Other Banks
$
(0.0
)
$
0.0
$
0.0
Funds Sold
3.0
(0.0
)
2.9
Investment Securities Available-for-Sale Taxable
1.2
0.3
1.5
Non-Taxable
0.1
0.1
0.2
Held-to-Maturity Taxable
(0.4
)
0.1
(0.4
)
Non-Taxable
(0.0
)
(0.0
)
(0.0
)
Total Investment Securities
0.9
0.4
1.3
Loans Held for Sale
0.0
(0.0
)
0.0
Loans and Leases Commercial and Industrial
(0.2
)
0.5
0.3
Paycheck Protection Program
(0.1
)
(0.0
)
(0.1
)
Commercial Mortgage
0.5
(0.1
)
0.4
Construction
0.8
(0.0
)
0.8
Commercial Lease Financing
0.1
0.0
0.1
Residential Mortgage
(0.0
)
0.8
0.8
Home Equity
(0.2
)
0.8
0.6
Automobile
(0.2
)
0.5
0.3
Other 2
(0.1
)
0.2
0.1
Total Loans and Leases
0.6
2.8
3.3
Other
(0.0
)
(0.3
)
(0.3
)
Total Change in Interest Income
4.5
2.9
7.4
Change in Interest Expense: Interest-Bearing Deposits Demand
0.1
0.0
0.1
Savings
1.1
2.6
3.7
Time
1.0
(0.2
)
0.9
Total Interest-Bearing Deposits
2.2
2.4
4.6
Funds Purchased
(0.0
)
0.0
(0.0
)
Short-Term Borrowings
(0.0
)
-
(0.0
)
Securities Sold Under Agreements to Repurchase
(0.2
)
0.0
(0.2
)
Other Debt
0.0
(0.1
)
(0.0
)
Total Change in Interest Expense
1.9
2.4
4.3
Change in Net Interest Income
$
2.5
$
0.5
$
3.0
1 The change in interest income and expense not solely due
to changes in volume or rate has been allocated on a pro-rata basis
to the volume and rate columns. 2 Comprised of other consumer
revolving credit, installment, and consumer lease financing.
Bank of Hawai‘i Corporation and Subsidiaries Analysis of
Change in Net Interest Income - Taxable-Equivalent Basis
Table 8b Three Months Ended September 30, 2024
Compared to September 30, 2023 (dollars in millions)
Volume 1 Rate 1 Total Change in Interest
Income: Interest-Bearing Deposits in Other Banks
$
0.0
$
0.0
$
0.0
Funds Sold
(3.8
)
0.0
(3.8
)
Investment Securities Available-for-Sale Taxable
(1.7
)
1.2
(0.5
)
Non-Taxable
0.1
0.1
0.2
Held-to-Maturity Taxable
(1.7
)
(0.0
)
(1.7
)
Non-Taxable
(0.0
)
(0.0
)
(0.0
)
Total Investment Securities
(3.3
)
1.3
(2.0
)
Loans Held for Sale
0.0
(0.0
)
(0.0
)
Loans and Leases Commercial and Industrial
1.8
1.9
3.7
Paycheck Protection Program
(0.0
)
0.0
(0.0
)
Commercial Mortgage
(0.6
)
1.5
0.9
Construction
2.1
1.3
3.4
Commercial Lease Financing
0.0
0.1
0.1
Residential Mortgage
(1.1
)
4.7
3.6
Home Equity
(0.7
)
3.0
2.3
Automobile
(0.7
)
1.9
1.2
Other 2
(0.5
)
0.9
0.4
Total Loans and Leases
0.3
15.3
15.6
Other
(0.5
)
0.0
(0.5
)
Total Change in Interest Income
(7.3
)
16.6
9.3
Change in Interest Expense: Interest-Bearing Deposits Demand
(0.3
)
2.6
2.3
Savings
2.3
14.3
16.6
Time
2.4
2.6
5.0
Total Interest-Bearing Deposits
4.4
19.5
23.9
Securities Sold Under Agreements to Repurchase
(4.0
)
1.0
(3.0
)
Other Debt
(8.7
)
(0.2
)
(8.9
)
Total Change in Interest Expense
(8.3
)
20.3
12.0
Change in Net Interest Income
$
1.0
$
(3.7
)
$
(2.7
)
1 The change in interest income and expense not solely due
to changes in volume or rate has been allocated on a pro-rata basis
to the volume and rate columns. 2 Comprised of other consumer
revolving credit, installment, and consumer lease financing.
Bank of Hawai‘i Corporation and Subsidiaries Analysis of
Change in Net Interest Income - Taxable-Equivalent Basis
Table 8c Nine Months Ended September 30, 2024
Compared to September 30, 2023 (dollars in millions)
Volume 1 Rate 1 Total Change in Interest
Income: Interest-Bearing Deposits in Other Banks
$
0.0
$
(0.0
)
$
0.0
Funds Sold
(2.2
)
0.8
(1.4
)
Investment Securities Available-for-Sale Taxable
(9.4
)
5.2
(4.2
)
Non-Taxable
(0.1
)
0.1
-
Held-to-Maturity Taxable
(5.2
)
(0.1
)
(5.3
)
Non-Taxable
(0.0
)
(0.1
)
(0.1
)
Total Investment Securities
(14.7
)
5.1
(9.6
)
Loans Held for Sale
(0.0
)
0.0
-
Loans and Leases Commercial and Industrial
7.8
6.5
14.3
Paycheck Protection Program
(0.1
)
(0.0
)
(0.1
)
Commercial Mortgage
(2.1
)
10.4
8.3
Construction
3.6
4.3
7.9
Commercial Lease Financing
(0.0
)
0.5
0.5
Residential Mortgage
(2.2
)
15.4
13.2
Home Equity
(0.9
)
8.9
8.0
Automobile
(1.6
)
5.9
4.3
Other 2
(1.4
)
2.6
1.2
Total Loans and Leases
3.1
54.5
57.6
Other
(1.1
)
0.1
(1.0
)
Total Change in Interest Income
(14.9
)
60.5
45.6
Change in Interest Expense: Interest-Bearing Deposits Demand
(1.4
)
7.5
6.1
Savings
4.5
66.3
70.8
Time
20.8
15.3
36.1
Total Interest-Bearing Deposits
23.9
89.1
113.0
Funds Purchased
(1.0
)
0.1
(0.9
)
Short-Term Borrowings
(6.2
)
0.5
(5.7
)
Securities Sold Under Agreements to Repurchase
(14.6
)
3.4
(11.2
)
Other Debt
(15.4
)
(0.5
)
(15.9
)
Total Change in Interest Expense
(13.3
)
92.6
79.3
Change in Net Interest Income
$
(1.6
)
$
(32.1
)
$
(33.7
)
1 The change in interest income and expense not solely due
to changes in volume or rate has been allocated on a pro-rata basis
to the volume and rate columns. 2 Comprised of other consumer
revolving credit, installment, and consumer lease financing.
Bank of Hawai‘i Corporation and Subsidiaries Salaries and
Benefits Table 9 Three Months Ended Nine
Months Ended September 30, June 30, September
30, September 30, (dollars in thousands)
2024
2024
2023
2024
2023
Salaries
$
38,993
$
38,662
$
39,426
$
115,686
$
116,005
Incentive Compensation
5,086
3,109
2,956
11,285
9,937
Retirement and Other Benefits
3,692
3,961
3,809
11,952
13,186
Medical, Dental, and Life Insurance
3,512
3,211
2,835
9,935
10,267
Share-Based Compensation
3,364
3,296
4,072
10,459
11,327
Payroll Taxes
2,839
3,070
2,921
10,639
12,079
Commission Expense
979
939
676
2,490
2,098
Separation Expense
161
785
2,130
1,428
5,189
Total Salaries and Benefits
$
58,626
$
57,033
$
58,825
$
173,874
$
180,088
Bank of Hawai‘i Corporation and Subsidiaries Loan
and Lease Portfolio Balances Table 10 September
30, June 30, March 31, December 31,
September 30, (dollars in thousands)
2024
2024
2024
2023
2023
Commercial Commercial Mortgage
$
3,868,566
$
3,741,140
$
3,715,032
$
3,749,016
$
3,784,339
Commercial and Industrial
1,675,347
1,691,441
1,669,482
1,652,699
1,569,572
Construction
319,150
315,571
323,069
304,463
251,507
Lease Financing
60,665
59,388
57,817
59,939
61,522
Paycheck Protection Program
6,346
7,997
10,177
11,369
12,529
Total Commercial
5,930,074
5,815,537
5,775,577
5,777,486
5,679,469
Consumer Residential Mortgage
4,622,677
4,595,586
4,616,900
4,684,171
4,699,140
Home Equity
2,195,844
2,221,073
2,240,946
2,264,827
2,285,974
Automobile
786,910
806,240
825,854
837,830
856,113
Other 1
383,078
392,830
394,560
400,712
398,795
Total Consumer
7,988,509
8,015,729
8,078,260
8,187,540
8,240,022
Total Loans and Leases
$
13,918,583
$
13,831,266
$
13,853,837
$
13,965,026
$
13,919,491
1 Comprised of other revolving credit, installment, and lease
financing.
Deposits September 30, June
30, March 31, December 31, September 30,
(dollars in thousands)
2024
2024
2024
2023
2023
Consumer
$
10,340,466
$
10,382,432
$
10,429,004
$
10,319,809
$
10,036,261
Commercial
8,356,239
7,995,618
8,323,330
8,601,224
8,564,536
Public and Other
2,281,617
2,030,452
1,924,252
2,134,012
2,201,512
Total Deposits
$
20,978,322
$
20,408,502
$
20,676,586
$
21,055,045
$
20,802,309
Average Deposits Three Months Ended
September 30, June 30, March 31, December
31, September 30, (dollars in thousands)
2024
2024
2024
2023
2023
Consumer
$
10,345,772
$
10,379,724
$
10,313,730
$
10,092,727
$
9,963,690
Commercial
8,207,310
8,188,685
8,334,540
8,581,426
8,288,891
Public and Other
1,931,309
1,789,984
1,895,370
2,029,917
2,239,501
Total Deposits
$
20,484,391
$
20,358,393
$
20,543,640
$
20,704,070
$
20,492,082
Bank of Hawai‘i Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90
Days or More Table 11 September 30, June
30, March 31, December 31, September 30,
(dollars in thousands)
2024
2024
2024
2023
2023
Non-Performing Assets Non-Accrual Loans and Leases
Commercial Commercial and Industrial
$
6,218
$
3,681
$
13
$
39
$
43
Commercial Mortgage
2,680
2,601
2,714
2,884
2,996
Total Commercial
8,898
6,282
2,727
2,923
3,039
Consumer Residential Mortgage
4,269
2,998
3,199
2,935
3,706
Home Equity
3,947
3,227
3,240
3,791
3,734
Total Consumer
8,216
6,225
6,439
6,726
7,440
Total Non-Accrual Loans and Leases
17,114
12,507
9,166
9,649
10,479
Foreclosed Real Estate
2,667
2,672
2,672
2,098
1,040
Total Non-Performing Assets
$
19,781
$
15,179
$
11,838
$
11,747
$
11,519
Accruing Loans and Leases Past Due 90 Days or More
Consumer Residential Mortgage
$
4,421
$
4,524
$
3,378
$
3,814
$
3,519
Home Equity
1,980
2,025
1,580
1,734
2,172
Automobile
580
568
517
399
393
Other 1
554
733
872
648
643
Total Consumer
7,535
7,850
6,347
6,595
6,727
Total Accruing Loans and Leases Past Due 90 Days or More
$
7,535
$
7,850
$
6,347
$
6,595
$
6,727
Total Loans and Leases
$
13,918,583
$
13,831,266
$
13,853,837
$
13,965,026
$
13,919,491
Ratio of Non-Accrual Loans and Leases to Total Loans and
Leases
0.12
%
0.09
%
0.07
%
0.07
%
0.08
%
Ratio of Non-Performing Assets to Total Loans and Leases and
Foreclosed Real Estate
0.14
%
0.11
%
0.09
%
0.08
%
0.08
%
Ratio of Non-Performing Assets to Total Assets
0.08
%
0.07
%
0.05
%
0.05
%
0.05
%
Ratio of Commercial Non-Performing Assets to Total
Commercial Loans and Leases and Commercial Foreclosed Real Estate
0.15
%
0.11
%
0.05
%
0.05
%
0.05
%
Ratio of Consumer Non-Performing Assets to Total Consumer
Loans and Leases and Consumer Foreclosed Real Estate
0.14
%
0.11
%
0.11
%
0.11
%
0.10
%
Ratio of Non-Performing Assets and Accruing Loans and Leases
Past Due 90 Days or More to Total Loans and Leases and Foreclosed
Real Estate
0.20
%
0.17
%
0.13
%
0.13
%
0.13
%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter
$
15,179
$
11,838
$
11,747
$
11,519
$
11,477
Additions
5,557
5,257
1,652
2,683
1,318
Reductions Payments
(734
)
(844
)
(921
)
(2,018
)
(1,017
)
Return to Accrual Status
(81
)
(1,018
)
(617
)
(437
)
(259
)
Charge-offs / Write-downs
(140
)
(54
)
(23
)
-
-
Total Reductions
(955
)
(1,916
)
(1,561
)
(2,455
)
(1,276
)
Balance at End of Quarter
$
19,781
$
15,179
$
11,838
$
11,747
$
11,519
1 Comprised of other revolving credit, installment, and
lease financing.
Bank of Hawai‘i Corporation and
Subsidiaries Reserve for Credit Losses Table 12
Three Months Ended Nine Months Ended September
30, June 30, September 30, September 30,
(dollars in thousands)
2024
2024
2023
2024
2023
Balance at Beginning of Period
$
151,155
$
152,148
$
151,702
$
152,429
$
151,247
Loans and Leases Charged-Off Commercial Commercial and
Industrial
(1,021
)
(875
)
(294
)
(2,256
)
(758
)
Consumer Residential Mortgage
-
(48
)
-
(48
)
(6
)
Home Equity
(125
)
(202
)
(13
)
(362
)
(68
)
Automobile
(1,651
)
(1,095
)
(1,353
)
(3,794
)
(4,309
)
Other 1
(2,539
)
(2,610
)
(1,957
)
(7,461
)
(6,296
)
Total Loans and Leases Charged-Off
(5,336
)
(4,830
)
(3,617
)
(13,921
)
(11,437
)
Recoveries on Loans and Leases Previously Charged-Off Commercial
Commercial and Industrial
66
263
72
445
225
Consumer Residential Mortgage
48
63
69
153
188
Home Equity
318
113
131
615
893
Automobile
552
481
721
1,559
2,170
Other 1
522
517
575
1,645
1,867
Total Recoveries on Loans and Leases Previously Charged-Off
1,506
1,437
1,568
4,417
5,343
Net Charged-Off - Loans and Leases
(3,830
)
(3,393
)
(2,049
)
(9,504
)
(6,094
)
Provision for Credit Losses: Loans and Leases
3,684
3,206
1,945
10,432
6,918
Unfunded Commitments
(684
)
(806
)
55
(3,032
)
(418
)
Total Provision for Credit Losses
3,000
2,400
2,000
7,400
6,500
Balance at End of Period
$
150,325
$
151,155
$
151,653
$
150,325
$
151,653
Components Allowance for Credit Losses - Loans and
Leases
$
147,331
$
147,477
$
145,263
$
147,331
$
145,263
Reserve for Unfunded Commitments
2,994
3,678
6,390
2,994
6,390
Total Reserve for Credit Losses
$
150,325
$
151,155
$
151,653
$
150,325
$
151,653
Average Loans and Leases Outstanding
$
13,809,977
$
13,831,797
$
13,903,214
$
13,836,760
$
13,833,164
Ratio of Net Loans and Leases Charged-Off to Average Loans
and Leases Outstanding (annualized)
0.11
%
0.10
%
0.06
%
0.09
%
0.06
%
Ratio of Allowance for Credit Losses to Loans and Leases
Outstanding 2
1.06
%
1.07
%
1.04
%
1.06
%
1.04
%
1 Comprised of other revolving credit, installment, and
lease financing. 2 The numerator comprises the Allowance for Credit
Losses - Loans and Leases.
Bank of Hawai‘i Corporation
and Subsidiaries Business Segments Selected Financial
Information Table 13a Consumer Commercial
Treasury Consolidated (dollars in thousands)
Banking Banking and Other Total
Three Months Ended September 30, 2024 Net Interest Income
(Expense)
$
97,919
$
50,556
$
(30,857
)
$
117,618
Provision for Credit Losses
3,058
772
(830
)
3,000
Net Interest Income (Expense) After Provision for Credit Losses
94,861
49,784
(30,027
)
114,618
Noninterest Income
34,133
7,786
3,191
45,110
Noninterest Expense
(84,712
)
(18,825
)
(3,555
)
(107,092
)
Income (Loss) Before Income Taxes
44,282
38,745
(30,391
)
52,636
Provision for Income Taxes
(11,289
)
(9,816
)
8,827
(12,278
)
Net Income (Loss)
$
32,993
$
28,929
$
(21,564
)
$
40,358
Total Assets as of September 30, 2024
$
8,308,389
$
5,952,321
$
9,538,464
$
23,799,174
Three Months Ended September 30, 2023 1 Net Interest
Income (Expense)
$
98,984
$
52,066
$
(30,113
)
$
120,937
Provision for Credit Losses
1,974
74
(48
)
2,000
Net Interest Income (Expense) After Provision for Credit Losses
97,010
51,992
(30,065
)
118,937
Noninterest Income
31,027
8,483
10,824
50,334
Noninterest Expense
(81,377
)
(18,937
)
(5,287
)
(105,601
)
Income (Loss) Before Income Taxes
46,660
41,538
(24,528
)
63,670
Provision for Income Taxes
(12,073
)
(10,523
)
6,829
(15,767
)
Net Income (Loss)
$
34,587
$
31,015
$
(17,699
)
$
47,903
Total Assets as of September 30, 2023
$
8,584,796
$
5,719,577
$
9,245,412
$
23,549,785
1 Certain prior period information has been reclassified to
conform to current presentation.
Bank of Hawai‘i
Corporation and Subsidiaries Business Segments Selected
Financial Information Table 13b Consumer
Commercial Treasury Consolidated (dollars in
thousands)
Banking Banking and Other
Total Nine Months Ended September 30, 2024 Net
Interest Income (Expense)
$
293,118
$
152,934
$
(99,650
)
$
346,402
Provision for Credit Losses
8,218
1,239
(2,057
)
7,400
Net Interest Income (Expense) After Provision for Credit Losses
284,900
151,695
(97,593
)
339,002
Noninterest Income
99,768
21,278
8,436
129,482
Noninterest Expense
(254,428
)
(55,478
)
(12,271
)
(322,177
)
Income (Loss) Before Income Taxes
130,240
117,495
(101,428
)
146,307
Provision for Income Taxes
(33,154
)
(29,711
)
27,390
(35,475
)
Net Income (Loss)
$
97,086
$
87,784
$
(74,038
)
$
110,832
Total Assets as of September 30, 2024
$
8,308,389
$
5,952,321
$
9,538,464
$
23,799,174
Nine Months Ended September 30, 2023 1 Net Interest
Income (Expense)
$
293,681
$
159,864
$
(72,305
)
$
381,240
Provision for Credit Losses
6,035
59
406
6,500
Net Interest Income (Expense) After Provision for Credit Losses
287,646
159,805
(72,711
)
374,740
Noninterest Income
94,126
25,072
15,128
134,326
Noninterest Expense
(247,543
)
(58,528
)
(15,485
)
(321,556
)
Income (Loss) Before Income Taxes
134,229
126,349
(73,068
)
187,510
Provision for Income Taxes
(34,566
)
(31,345
)
19,207
(46,704
)
Net Income (Loss)
$
99,663
$
95,004
$
(53,861
)
$
140,806
Total Assets as of September 30, 2023
$
8,584,796
$
5,719,577
$
9,245,412
$
23,549,785
1 Certain prior period information has been reclassified to
conform to current presentation.
Bank of Hawai‘i
Corporation and Subsidiaries Selected Quarterly Financial
Data Table 14 Three Months Ended September
30, June 30, March 31, December 31,
September 30, (dollars in thousands, except per share
amounts)
2024
2024
2024
2023
2023
Quarterly Operating Results Interest Income Interest and
Fees on Loans and Leases
$
166,286
$
163,208
$
159,336
$
158,324
$
151,245
Income on Investment Securities Available-for-Sale
23,257
21,468
21,757
22,782
23,552
Held-to-Maturity
21,107
21,595
22,136
22,589
22,838
Deposits
29
25
30
23
18
Funds Sold
8,951
6,114
6,127
5,705
12,828
Other
1,018
1,120
970
924
1,464
Total Interest Income
220,648
213,530
210,356
210,347
211,945
Interest Expense Deposits
96,067
91,542
89,056
87,121
72,153
Securities Sold Under Agreements to Repurchase
993
1,180
1,443
1,459
4,034
Funds Purchased
-
44
-
-
-
Other Debt
5,970
5,918
5,919
5,982
14,821
Total Interest Expense
103,030
98,684
96,418
94,562
91,008
Net Interest Income
117,618
114,846
113,938
115,785
120,937
Provision for Credit Losses
3,000
2,400
2,000
2,500
2,000
Net Interest Income After Provision for Credit Losses
114,618
112,446
111,938
113,285
118,937
Noninterest Income Fees, Exchange, and Other Service Charges
14,945
13,769
14,123
13,774
13,824
Trust and Asset Management
11,916
12,223
11,189
11,144
10,548
Service Charges on Deposit Accounts
8,075
7,730
7,947
7,949
7,843
Bank-Owned Life Insurance
3,533
3,396
3,356
3,176
2,749
Annuity and Insurance
1,460
1,583
1,046
1,271
1,156
Mortgage Banking
1,188
1,028
951
1,016
1,059
Investment Securities Losses, Net
(1,103
)
(1,601
)
(1,497
)
(1,619
)
(6,734
)
Other
5,096
3,959
5,170
5,572
19,889
Total Noninterest Income
45,110
42,087
42,285
42,283
50,334
Noninterest Expense Salaries and Benefits
58,626
57,033
58,215
53,991
58,825
Net Occupancy
10,806
10,559
10,456
9,734
10,327
Net Equipment
10,120
10,355
10,103
9,826
9,477
Professional Fees
4,725
4,929
4,677
5,079
3,846
Data Processing
4,712
4,745
4,770
4,948
4,706
FDIC Insurance
3,355
7,170
3,614
18,545
3,361
Other
14,748
14,435
14,024
13,839
15,059
Total Noninterest Expense
107,092
109,226
105,859
115,962
105,601
Income Before Provision for Income Taxes
52,636
45,307
48,364
39,606
63,670
Provision for Income Taxes
12,278
11,224
11,973
9,210
15,767
Net Income
$
40,358
$
34,083
$
36,391
$
30,396
$
47,903
Preferred Stock Dividends
3,436
1,969
1,969
1,969
1,969
Net Income Available to Common Shareholders
$
36,922
$
32,114
$
34,422
$
28,427
$
45,934
Basic Earnings Per Common Share
$
0.94
$
0.81
$
0.87
$
0.72
$
1.17
Diluted Earnings Per Common Share
$
0.93
$
0.81
$
0.87
$
0.72
$
1.17
Balance Sheet Totals Loans and Leases
$
13,918,583
$
13,831,266
$
13,853,837
$
13,965,026
$
13,919,491
Total Assets
23,799,174
23,300,768
23,420,860
23,733,296
23,549,785
Total Deposits
20,978,322
20,408,502
20,676,586
21,055,045
20,802,309
Total Shareholders' Equity
1,665,474
1,612,849
1,435,977
1,414,242
1,363,840
Performance Ratios Return on Average Assets
0.69
%
0.59
%
0.63
%
0.51
%
0.78
%
Return on Average Shareholders' Equity
9.90
9.53
10.34
8.86
13.92
Return on Average Common Equity
11.50
10.41
11.20
9.55
15.38
Efficiency Ratio 1
65.81
69.60
67.76
73.36
61.66
Net Interest Margin 2
2.18
2.15
2.11
2.13
2.13
1 Efficiency ratio is defined as noninterest expense divided
by total revenue (net interest income and total noninterest
income). 2 Net interest margin is defined as net interest income,
on a taxable-equivalent basis, as a percentage of average earning
assets.
Bank of Hawai‘i Corporation and Subsidiaries
Hawaii Economic Trends Table 15 Eight Months
Ended Year Ended (dollars in millions; jobs in
thousands)
August 31, 2024 December 31, 2023
December 31, 2022 Hawaii Economic Trends State
General Fund Revenues 1
$
6,568.2
1.5
%
$
9,504.1
0.7
%
$
9,441.3
16.0
%
General Excise and Use Tax Revenue 1
3,094.1
2.2
4,474.1
4.9
4,263.4
18.3
Jobs 2
651.1
655.2
653.3
September 30, December 31,
2024
2023
2022
Unemployment, seasonally adjusted 2 Statewide
2.9
%
3.0
%
3.2
%
Honolulu County
2.8
2.6
3.1
Hawaii County
3.2
2.8
3.5
Maui County
2.5
6.2
3.5
Kauai County
3.5
2.5
3.1
September 30, December 31, (1-year percentage
change, except months of inventory)
2024
2023
2022
2021
Housing Trends (Single Family Oahu) 3 Median Home Price
4.8
%
(5.0
)%
11.6
%
19.3
%
Home Sales Volume (units)
5.8
%
(26.3
)%
(23.2
)%
17.9
%
Months of Inventory
3.4
2.8
2.1
0.8
Monthly Visitor Arrivals, Percentage Change
(in thousands, except percent change)
Not Seasonally
Adjusted from Previous Year Tourism 4 August 31,
2024
819.2
6.9
%
July 31, 2024
925.3
(0.5
)
June 30, 2024
872.6
(1.5
)
May 31, 2024
757.8
(4.1
)
April 30, 2024
721.9
(10.5
)
March 31, 2024
843.5
(5.5
)
February 29, 2024
752.7
2.6
January 31, 2024
745.6
(3.8
)
December 31, 2023
845.6
(1.5
)
November 30, 2023
720.3
0.2
October 31, 2023
700.3
(3.7
)
September 30, 2023
643.1
(7.1
)
August 31, 2023
766.0
(7.7
)
July 31, 2023
929.4
1.2
June 30, 2023
886.0
5.3
May 31, 2023
790.5
2.1
April 30, 2023
806.2
(0.4
)
March 31, 2023
892.2
13.6
February 28, 2023
733.6
17.6
January 31, 2023
775.1
36.7
December 31, 2022
858.3
14.0
November 30, 2022
719.0
17.1
October 31, 2022
727.4
32.1
September 30, 2022
692.2
37.2
August 31, 2022
829.8
14.8
1 Source: Hawaii Department of Business, Economic Development &
Tourism 2 Source: U.S. Bureau of Labor Statistics 3 Source:
Honolulu Board of Realtors 4 Source: Hawaii Tourism Authority
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241028191210/en/
Investor/Analyst Inquiries Chang Park
Email: Chang.Park@boh.com Phone: 808-694-8238
Media Inquiries Melissa Torres-Laing
Email: Melissa.Torres-Laing@boh.com Phone: 808-694-8384
Mobile: 808-859-1703
Bank of Hawaii (NYSE:BOH)
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