This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bank Of Hawaii Corporation Second Quarter 2012 Financial Results

Stocks in this article: BOH

Conference Call Information

The Company will review its second quarter 2012 financial results today at 8:00 a.m. Hawaii Time. The conference call will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation’s web site, www.boh.com. Conference call participants located in the United States should dial 800-237-9752. International participants should dial 617-847-8706. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning Monday, July 23, 2012 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the pass code number 86421715 when prompted. A replay will also be available via the Investor Relations link on the Company’s web site.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2011, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.

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

 
Bank of Hawaii Corporation and Subsidiaries
Financial Highlights   Table 1a
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
(dollars in thousands, except per share amounts) 2012   2012   2011   2012   2011

For the Period:

Operating Results
Net Interest Income $ 95,381 $ 97,948 $ 97,499 $ 193,329 $ 197,196
Provision for Credit Losses 628 351 3,600 979 8,291
Total Noninterest Income 46,848 48,082 49,463 94,930 103,385
Total Noninterest Expense 80,747 85,207 93,774 165,954 179,856
Net Income 40,747 43,810 35,148 84,557 77,508
Basic Earnings Per Share 0.90 0.96 0.74 1.86 1.63
Diluted Earnings Per Share 0.90 0.95 0.74 1.85 1.62
Dividends Declared Per Share 0.45 0.45 0.45 0.90 0.90
 
Performance Ratios
Return on Average Assets 1.19 % 1.29 % 1.09 % 1.24 % 1.21 %
Return on Average Shareholders' Equity 16.19 17.26 13.86 16.73 15.36
Efficiency Ratio 1 56.77 58.35 63.81 57.57 59.84
Net Interest Margin 2 2.98 3.06 3.16 3.02 3.20
Dividend Payout Ratio 3 50.00 46.88 60.81 48.39 55.21
Average Shareholders' Equity to Average Assets 7.36 7.46 7.84 7.41 7.85
 
Average Balances
Average Loans and Leases $ 5,641,588 $ 5,563,358 $ 5,326,123 $ 5,602,473 $ 5,318,993
Average Assets 13,750,488 13,681,229 12,967,232 13,715,859 12,966,437
Average Deposits 10,622,420 10,430,215 9,790,349 10,526,317 9,831,809
Average Shareholders' Equity 1,012,182 1,020,668 1,016,813 1,016,425 1,017,795
 
Market Price Per Share of Common Stock
Closing $ 45.95 $ 48.35 $ 46.52 $ 45.95 $ 46.52
High 49.99 48.75 49.26 49.99 49.26
Low 44.02 44.08 44.90 44.02 44.32
 
June 30, March 31, December 31, June 30,
      2012   2012   2011   2011

As of Period End:

Balance Sheet Totals
Loans and Leases $ 5,671,483 $ 5,598,932 $ 5,538,304 $ 5,351,473
Total Assets 13,915,626 13,759,409 13,846,391 13,161,204
Total Deposits 11,547,993 10,621,170 10,592,623 9,979,034
Long-Term Debt 28,075 30,687 30,696 30,714
Total Shareholders' Equity 1,003,825 995,897 1,002,667 1,003,450
 
Asset Quality
Allowance for Loan and Lease Losses $ 132,443 $ 135,606 $ 138,606 $ 144,976
Non-Performing Assets 41,494 41,406 40,790 34,156
 
Financial Ratios
Allowance to Loans and Leases Outstanding 2.34 % 2.42 % 2.50 % 2.71 %
Tier 1 Capital Ratio 16.41 16.50 16.68 17.96
Total Capital Ratio 17.67 17.76 17.95 19.23
Tier 1 Leverage Ratio 6.57 6.57 6.73 7.07
Total Shareholders' Equity to Total Assets 7.21 7.24 7.24 7.62
Tangible Common Equity to Tangible Assets 4 7.00 7.02 7.03 7.40
Tangible Common Equity to Risk-Weighted Assets 4 17.57 17.62 17.93 18.95
 
Non-Financial Data
Full-Time Equivalent Employees 2,312 2,318 2,370 2,405
Branches and Offices 77 81 81 82
ATMs 494 498 506 508
 
 
1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
2 Net interest margin is defined as net interest income, on a taxable equivalent basis, as a percentage of average earning assets.
3 Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.

4 Tangible common equity, a non-GAAP financial measure, is defined by the Company as shareholders' equity minus goodwill and intangible assets. Intangible assets are included as a component of other assets in the Consolidated Statements of Condition.

 

Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures   Table 1b
  June 30,   March 31,   December 31,   June 30,
(dollars in thousands)   2012   2012   2011   2011
 
Total Shareholders' Equity $ 1,003,825 $ 995,897 $ 1,002,667 $ 1,003,450
Less: Goodwill 31,517 31,517 31,517 31,517
  Intangible Assets     58       71       83       108  
Tangible Common Equity   $ 972,250     $ 964,309     $ 971,067     $ 971,825  
 
Total Assets $ 13,915,626 $ 13,759,409 $ 13,846,391 $ 13,161,204
Less: Goodwill 31,517 31,517 31,517 31,517
  Intangible Assets     58       71       83       108  
Tangible Assets   $ 13,884,051     $ 13,727,821     $ 13,814,791     $ 13,129,579  
 

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

$ 5,532,285 $ 5,473,661 $ 5,414,481 $ 5,128,368
 
Total Shareholders' Equity to Total Assets 7.21 % 7.24 % 7.24 % 7.62 %
Tangible Common Equity to Tangible Assets (Non-GAAP) 7.00 % 7.02 % 7.03 % 7.40 %
 
Tier 1 Capital Ratio 16.41 % 16.50 % 16.68 % 17.96 %
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 17.57 % 17.62 % 17.93 % 18.95 %
 
Bank of Hawaii Corporation and Subsidiaries
Net Significant Income (Expense) Items   Table 2
  Three Months Ended   Six Months Ended
June 30,   March 31,   June 30, June 30,
(dollars in thousands)   2012   2012   2011   2012   2011
Investment Securities Gains, Net - - - -   6,084
Gains (Losses) on Disposal of Leased Equipment - 2,473 - 2,473 -
Decrease in Allowance for Loan and Lease Losses 3,163 3,000 2,382 6,163 2,382
PC Refresh - (1,163 ) - (1,163 ) -
Legal Settlement Related to OD Claims     -     -       (9,000 )     -       (9,000 )
Significant Income (Expense) Items Before the Provision (Benefit) for Income Taxes     3,163     4,310       (6,618 )     7,473       (534 )
Income Taxes Impact Related to Lease Transactions - (2,733 ) - (2,733 ) -
Income Tax Impact     1,107     293       (2,316 )     1,400       (187 )
Net Significant Income (Expense) Items   $ 2,056   $ 6,750     $ (4,302 )   $ 8,806     $ (347 )
 
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)   2012   2012   2011   2012   2011
Interest Income  
Interest and Fees on Loans and Leases $ 63,910 $ 64,691 $ 65,542 $ 128,601 $ 132,135
Income on Investment Securities
Available-for-Sale 16,988 17,713 23,490 34,701 61,159
Held-to-Maturity 25,054 26,413 20,553 51,467 28,186
Deposits 1 2 2 3 -
Funds Sold 119 129 297 248 548
Other     281     280       279     561       558
Total Interest Income     106,353     109,228       110,163     215,581       222,586
Interest Expense
Deposits 3,219 3,473 4,792 6,692 10,024
Securities Sold Under Agreements to Repurchase 7,250 7,304 7,338 14,554 14,379
Funds Purchased 5 5 5 10 11
Long-Term Debt     498     498       529     996       976
Total Interest Expense     10,972     11,280       12,664     22,252       25,390
Net Interest Income 95,381 97,948 97,499 193,329 197,196
Provision for Credit Losses     628     351       3,600     979       8,291
Net Interest Income After Provision for Credit Losses     94,753     97,597       93,899     192,350       188,905
Noninterest Income
Trust and Asset Management 11,195 10,918 11,427 22,113 23,233
Mortgage Banking 7,581 5,050 2,661 12,631 5,783
Service Charges on Deposit Accounts 9,225 9,591 9,375 18,816 19,307
Fees, Exchange, and Other Service Charges 12,326 12,399 16,662 24,725 31,607
Investment Securities Gains (Losses), Net - (90 ) - (90 ) 6,084
Insurance 2,399 2,278 3,210 4,677 5,981
Other     4,122     7,936       6,128     12,058       11,390
Total Noninterest Income     46,848     48,082       49,463     94,930       103,385
Noninterest Expense
Salaries and Benefits 44,037 47,024 46,800 91,061 93,582
Net Occupancy 10,058 10,516 10,476 20,574 20,803
Net Equipment 4,669 5,826 4,741 10,495 9,439
Professional Fees 2,386 2,132 2,294 4,518 4,452
FDIC Insurance 2,088 2,071 2,010 4,159 5,254
Other     17,509     17,638       27,453     35,147       46,326
Total Noninterest Expense     80,747     85,207       93,774     165,954       179,856
Income Before Provision for Income Taxes 60,854 60,472 49,588 121,326 112,434
Provision for Income Taxes     20,107     16,662       14,440     36,769       34,926
Net Income   $ 40,747   $ 43,810     $ 35,148   $ 84,557     $ 77,508
Basic Earnings Per Share $ 0.90 $ 0.96 $ 0.74 $ 1.86 $ 1.63
Diluted Earnings Per Share $ 0.90 $ 0.95 $ 0.74 $ 1.85 $ 1.62
Dividends Declared Per Share $ 0.45 $ 0.45 $ 0.45 $ 0.90 $ 0.90
Basic Weighted Average Shares 45,221,293 45,709,936 47,428,718 45,465,910 47,638,752
Diluted Weighted Average Shares     45,347,368     45,875,238       47,607,814     45,610,489       47,837,778
 
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)   2012   2012   2011   2012   2011
Net Income $ 40,747 $ 43,810 $ 35,148 $ 84,557   $ 77,508
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities 3,387 (6,454 ) 19,265 (3,067 ) (235 )
  Defined Benefit Plans     153     153       577     306       1,048  
Other Comprehensive Income (Loss) 3,540 (6,301 ) 19,842 (2,761 ) 813
                       
Comprehensive Income   $ 44,287   $ 37,509     $ 54,990   $ 81,796     $ 78,321  
 
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition   Table 5
  June 30,   March 31,   December 31,   June 30,
(dollars in thousands)   2012   2012   2011   2011
Assets
Interest-Bearing Deposits $ 3,057 $ 3,333 $ 3,036 $ 4,796
Funds Sold 499,338 213,458 512,384 449,042
Investment Securities
Available-for-Sale 3,339,472 3,469,260 3,451,885 4,112,601
Held to Maturity (Fair Value of $3,828,954; $3,877,269; $3,754,206; and $2,566,621) 3,729,665 3,779,272 3,657,796 2,512,024
Loans Held for Sale 14,223 10,655 18,957 13,157
Loans and Leases 5,671,483 5,598,932 5,538,304 5,351,473
Allowance for Loan and Lease Losses     (132,443 )     (135,606 )     (138,606 )     (144,976 )
Net Loans and Leases     5,539,040       5,463,326       5,399,698       5,206,497  
Total Earning Assets     13,124,795       12,939,304       13,043,756       12,298,117  
Cash and Noninterest-Bearing Deposits 131,845 154,100 154,489 203,326
Premises and Equipment 107,421 106,543 103,550 105,785
Customers' Acceptances 176 117 476 882
Accrued Interest Receivable 45,044 48,032 43,510 40,957
Foreclosed Real Estate 2,569 3,530 3,042 2,590
Mortgage Servicing Rights 23,254 23,915 24,279 25,072
Goodwill 31,517 31,517 31,517 31,517
Other Assets     449,005       452,351       441,772       452,958  
Total Assets   $ 13,915,626     $ 13,759,409     $ 13,846,391     $ 13,161,204  
 
Liabilities
Deposits
Noninterest-Bearing Demand $ 3,105,798 $ 2,964,372 $ 2,850,923 $ 2,507,358
Interest-Bearing Demand 2,063,070 1,964,487 2,005,983 2,023,937
Savings 4,435,894 4,440,674 4,398,638 4,413,390
Time     1,943,231       1,251,637       1,337,079       1,034,349  
Total Deposits     11,547,993       10,621,170       10,592,623       9,979,034  
Funds Purchased 13,756 11,024 10,791 9,882
Short-Term Borrowings - - - 6,800
Securities Sold Under Agreements to Repurchase 1,065,653 1,825,646 1,925,998 1,873,286
Long-Term Debt 28,075 30,687 30,696 30,714
Banker's Acceptances 176 117 476 882
Retirement Benefits Payable 41,812 41,862 46,949 30,588
Accrued Interest Payable 5,114 6,318 5,330 5,457
Taxes Payable and Deferred Taxes 86,095 104,259 95,840 106,244
Other Liabilities     123,127       122,429       135,021       114,867  
Total Liabilities     12,911,801       12,763,512       12,843,724       12,157,754  
Shareholders' Equity

Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2012 - 57,301,892 / 45,248,277; March 31, 2012 - 57,290,145 / 45,605,881; December 31, 2011 - 57,134,470 / 45,947,116; and June 30, 2011 - 57,132,830 / 47,225,303)

571 571 571 571
Capital Surplus 511,729 509,860 507,558 502,777
Accumulated Other Comprehensive Income 32,502 28,962 35,263 27,778
Retained Earnings 1,044,588 1,024,736 1,003,938 964,420

Treasury Stock, at Cost (Shares: June 30, 2012 - 12,053,615; March 31, 2012 - 11,684,264; December 31, 2011 - 11,187,354; and June 30, 2011 - 9,907,527)

    (585,565 )     (568,232 )     (544,663 )     (492,096 )
Total Shareholders' Equity     1,003,825       995,897       1,002,667       1,003,450  
Total Liabilities and Shareholders' Equity   $ 13,915,626     $ 13,759,409     $ 13,846,391     $ 13,161,204  
 
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity   Table 6
        Accum.      
Other
Compre-
Common Shares Common Capital hensive Retained Treasury
(dollars in thousands)   Outstanding   Stock   Surplus   Income   Earnings   Stock   Total
Balance as of December 31, 2011 45,947,116 $ 571 $ 507,558 $ 35,263 $ 1,003,938 $ (544,663 ) $ 1,002,667
Net Income - - - - 84,557 - 84,557
Other Comprehensive Loss - - - (2,761 ) - - (2,761 )
Share-Based Compensation - - 3,723 - - - 3,723

Common Stock Issued under Purchase and Equity

Compensation Plans and Related Tax Benefits 400,094 - 448 - (2,758 ) 10,684 8,374
Common Stock Repurchased (1,098,933 ) - - - - (51,586 ) (51,586 )
Cash Dividends Paid ($0.90 per share)   -       -     -     -       (41,149 )     -       (41,149 )
Balance as of June 30, 2012   45,248,277     $ 571   $ 511,729   $ 32,502     $ 1,044,588     $ (585,565 )   $ 1,003,825  
 
Balance as of December 31, 2010 48,097,672 $ 570 $ 500,888 $ 26,965 $ 932,629 $ (449,919 ) $ 1,011,133
Net Income - - - - 77,508 - 77,508
Other Comprehensive Income - - - 813 - - 813
Share-Based Compensation - - 1,360 - - - 1,360
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits 237,619 1 529 - (2,752 ) 10,051 7,829
Common Stock Repurchased (1,109,988 ) - - - - (52,228 ) (52,228 )
Cash Dividends Paid ($0.90 per share)   -       -     -     -       (42,965 )     -       (42,965 )
Balance as of June 30, 2011   47,225,303     $ 571   $ 502,777   $ 27,778     $ 964,420     $ (492,096 )   $ 1,003,450  
 
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, 2012 March 31, 2012 June 30, 2011
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 $ 3.0 $ - 0.12 % $ 3.2 $ - 0.25 % $ 5.3 $ - 0.15 %
Funds Sold 237.8 0.1 0.20 262.4 0.1 0.19 518.4 0.3 0.23
Investment Securities
Available-for-Sale 3,410.4 19.4 2.27 3,451.6 19.7 2.28 4,061.4 23.9 2.35
Held-to-Maturity 3,788.9 25.1 2.65 3,737.3 26.4 2.83 2,418.0 20.6 3.40
Loans Held for Sale 12.1 0.1 4.22 12.0 0.1 4.22 11.5 0.1 3.25
Loans and Leases 1
Commercial and Industrial 786.3 7.7 3.93 805.9 8.1 4.03 772.4 7.8 4.02
Commercial Mortgage 953.5 10.4 4.40 941.6 10.5 4.50 890.9 10.8 4.87
Construction 99.7 1.3 5.07 103.5 1.4 5.34 79.3 1.0 5.24
Commercial Lease Financing 284.5 1.7 2.36 294.3 1.7 2.33 329.5 2.3 2.79
Residential Mortgage 2,371.7 27.9 4.71 2,264.4 27.7 4.90 2,113.3 27.7 5.25
Home Equity 772.3 8.4 4.36 778.9 8.6 4.43 785.3 9.5 4.83
Automobile 193.7 2.9 6.03 193.1 3.0 6.20 192.8 3.3 6.92
  Other 2     179.9     3.6   8.12       181.6     3.7   8.08       162.6     3.0   7.50
Total Loans and Leases     5,641.6     63.9   4.54       5,563.3     64.7   4.66       5,326.1     65.4   4.92
Other     80.0     0.3   1.41       79.9     0.3   1.40       79.9     0.3   1.40
Total Earning Assets 3     13,173.8     108.9   3.31       13,109.7     111.3   3.40       12,420.6     110.6   3.56
Cash and Noninterest-Bearing Deposits 131.7 137.2 129.3
Other Assets   445.0   434.3   417.3
Total Assets $ 13,750.5 $ 13,681.2 $ 12,967.2
 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand 1,906.1 0.1 0.03 1,867.1 0.1 0.02 1,769.6 0.2 0.04
Savings 4,444.5 1.1 0.10 4,439.0 1.3 0.12 4,523.0 1.9 0.17
  Time     1,253.9     2.0   0.63       1,260.2     2.1   0.66       1,009.5     2.7   1.07
Total Interest-Bearing Deposits     7,604.5     3.2   0.17       7,566.3     3.5   0.18       7,302.1     4.8   0.26
Short-Term Borrowings 15.0 - 0.14 15.7 - 0.12 16.2 - 0.13
Securities Sold Under Agreements to Repurchase 1,808.5 7.3 1.59 1,916.0 7.3 1.51 1,862.4 7.4 1.56
Long-Term Debt     30.6     0.5   6.51       30.7     0.5   6.49       32.6     0.5   6.49
Total Interest-Bearing Liabilities     9,458.6     11.0   0.46       9,528.7     11.3   0.47       9,213.3     12.7   0.55
Net Interest Income $ 97.9 $ 100.0 $ 97.9
Interest Rate Spread 2.85 % 2.93 % 3.01 %
Net Interest Margin 2.98 % 3.06 % 3.16 %
Noninterest-Bearing Demand Deposits 3,017.9 2,864.0 2,488.2
Other Liabilities 261.8 267.8 248.9
Shareholders' Equity   1,012.2       1,020.7   1,016.8
Total Liabilities and Shareholders' Equity $ 13,750.5     $ 13,681.2 $ 12,967.2
 
 

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

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

3 Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $2,481,000, $2,070,000 and $395,000 for the three months ended June 30, 2012, March 31, 2012, and June 30, 2011, 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, 2012 June 30, 2011
Average   Income/   Yield/ Average   Income/   Yield/
(dollars in millions)   Balance   Expense   Rate     Balance   Expense   Rate
Earning Assets
Interest-Bearing Deposits $ 3.1 $ - 0.19 % $ 4.7 $ - 0.02 %
Funds Sold 250.1 0.2 0.20 488.0 0.6 0.22
Investment Securities
Available-for-Sale 3,431.0 39.0 2.28 4,849.8 61.9 2.56
Held-to-Maturity 3,763.1 51.5 2.74 1,663.6 28.2 3.39
Loans Held for Sale 12.0 0.3 4.22 10.0 0.2 4.26
Loans and Leases 1
Commercial and Industrial 796.1 15.8 3.98 774.1 15.6 4.07
Commercial Mortgage 947.6 21.0 4.45 871.2 21.2 4.90
Construction 101.6 2.6 5.21 80.0 2.0 5.14
Commercial Lease Financing 289.4 3.4 2.35 331.5 4.6 2.77
Residential Mortgage 2,318.0 55.7 4.80 2,107.0 56.3 5.34
Home Equity 775.6 16.9 4.39 790.6 19.1 4.87
Automobile 193.4 5.9 6.12 197.9 6.9 7.03
  Other 2     180.8     7.3   8.10       166.7     6.2   7.52
Total Loans and Leases     5,602.5     128.6   4.60       5,319.0     131.9   4.98
Other     80.0     0.6   1.40       79.9     0.6   1.40
Total Earning Assets 3     13,141.8     220.2   3.36       12,415.0     223.4   3.61
Cash and Noninterest-Bearing Deposits 134.5 131.9
Other Assets   439.6   419.5
Total Assets $ 13,715.9 $ 12,966.4
 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand 1,886.6 0.2 0.03 1,787.2 0.4 0.04
Savings 4,441.8 2.4 0.11 4,529.9 4.1 0.18
  Time     1,257.0     4.1   0.64       1,027.6     5.5   1.08
Total Interest-Bearing Deposits     7,585.4     6.7   0.18       7,344.7     10.0   0.28
Short-Term Borrowings 15.3 - 0.13 16.6 - 0.13
Securities Sold Under Agreements to Repurchase 1,862.3 14.6 1.55 1,812.2 14.4 1.58
Long-Term Debt     30.7     1.0   6.50       32.6     1.0   5.99
Total Interest-Bearing Liabilities     9,493.7     22.3   0.47       9,206.1     25.4   0.55
Net Interest Income $ 197.9 $ 198.0
Interest Rate Spread 2.89 % 3.06 %
Net Interest Margin 3.02 % 3.20 %
Noninterest-Bearing Demand Deposits 2,940.9 2,487.0
Other Liabilities 264.9 255.5
Shareholders' Equity   1,016.4   1,017.8
Total Liabilities and Shareholders' Equity $ 13,715.9 $ 12,966.4
 
 

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

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

3 Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $4,551,000 and $778,000 for the six months ended June 30, 2012 and 2011, respectively.

 

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable Equivalent Basis   Table 8a
  Three Months Ended June 30, 2012
Compared to March 31, 2012
(dollars in millions)   Volume 1   Rate 1   Total
Change in Interest Income:    
Investment Securities
Available-for-Sale $ (0.2 ) $ (0.1 ) $ (0.3 )
Held-to-Maturity 0.4 (1.7 ) (1.3 )
Loans and Leases
Commercial and Industrial (0.2 ) (0.2 ) (0.4 )
Commercial Mortgage 0.1 (0.2 ) (0.1 )
Construction - (0.1 ) (0.1 )
Residential Mortgage 1.3 (1.1 ) 0.2
Home Equity (0.1 ) (0.1 ) (0.2 )
Automobile - (0.1 ) (0.1 )
Other 2     (0.1 )     -       (0.1 )
Total Loans and Leases     1.0       (1.8 )     (0.8 )
Total Change in Interest Income     1.2       (3.6 )     (2.4 )
 
Change in Interest Expense:
Interest-Bearing Deposits
Savings - (0.2 ) (0.2 )
Time     -       (0.1 )     (0.1 )
Total Interest-Bearing Deposits     -       (0.3 )     (0.3 )
Securities Sold Under Agreements to Repurchase     (0.4 )     0.4       -  
Total Change in Interest Expense     (0.4 )     0.1       (0.3 )
 
Change in Net Interest Income   $ 1.6     $ (3.7 )   $ (2.1 )
 
 

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

2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
 
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable Equivalent Basis   Table 8b
  Three Months Ended June 30, 2012
Compared to June 30, 2011
(dollars in millions)   Volume 1   Rate 1   Total
Change in Interest Income:    
Funds Sold $ (0.2 ) $ - $ (0.2 )
Investment Securities
Available-for-Sale (3.7 ) (0.8 ) (4.5 )
Held-to-Maturity 9.8 (5.3 ) 4.5
Loans and Leases
Commercial and Industrial 0.1 (0.2 ) (0.1 )
Commercial Mortgage 0.7 (1.1 ) (0.4 )
Construction 0.3 - 0.3
Commercial Lease Financing (0.3 ) (0.3 ) (0.6 )
Residential Mortgage 3.2 (3.0 ) 0.2
Home Equity (0.2 ) (0.9 ) (1.1 )
Automobile - (0.4 ) (0.4 )
Other 2     0.4       0.2       0.6  
Total Loans and Leases     4.2       (5.7 )     (1.5 )
Total Change in Interest Income     10.1       (11.8 )     (1.7 )
 
Change in Interest Expense:
Interest-Bearing Deposits
Demand - (0.1 ) (0.1 )
Savings (0.1 ) (0.7 ) (0.8 )
Time     0.6       (1.3 )     (0.7 )
Total Interest-Bearing Deposits     0.5       (2.1 )     (1.6 )
Securities Sold Under Agreements to Repurchase     (0.2 )     0.1       (0.1 )
Total Change in Interest Expense     0.3       (2.0 )     (1.7 )
 
Change in Net Interest Income   $ 9.8     $ (9.8 )   $ -  
 
 

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

2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
 
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable Equivalent Basis   Table 8c
  Six Months Ended June 30, 2012
Compared to June 30, 2011
(dollars in millions)   Volume 1   Rate 1   Total
Change in Interest Income:    
Funds Sold (0.3 ) (0.1 ) (0.4 )
Investment Securities
Available-for-Sale (16.7 ) (6.2 ) (22.9 )
Held-to-Maturity 29.6 (6.3 ) 23.3
Loans Held for Sale 0.1 - 0.1
Loans and Leases
Commercial and Industrial 0.5 (0.3 ) 0.2
Commercial Mortgage 1.8 (2.0 ) (0.2 )
Construction 0.6 - 0.6
Commercial Lease Financing (0.5 ) (0.7 ) (1.2 )
Residential Mortgage 5.4 (6.0 ) (0.6 )
Home Equity (0.4 ) (1.8 ) (2.2 )
Automobile (0.2 ) (0.8 ) (1.0 )
Other 2   0.6     0.5     1.1  
Total Loans and Leases   7.8     (11.1 )   (3.3 )
Total Change in Interest Income   20.5     (23.7 )   (3.2 )
 
Change in Interest Expense:
Interest-Bearing Deposits
Demand - (0.2 ) (0.2 )
Savings (0.1 ) (1.6 ) (1.7 )
Time   1.1     (2.5 )   (1.4 )
Total Interest-Bearing Deposits   1.0     (4.3 )   (3.3 )
Securities Sold Under Agreements to Repurchase 0.5 (0.3 ) 0.2
Long-Term Debt   (0.1 )   0.1     -  
Total Change in Interest Expense   1.4     (4.5 )   (3.1 )
 
Change in Net Interest Income   19.1     (19.2 )   (0.1 )
 
 

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

2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
 
Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits   Table 9
  Three Months Ended   Six Months Ended
June 30,   March 31,   June 30, June 30,
(dollars in thousands)   2012   2012   2011   2012   2011
Salaries $ 27,831 $ 28,687 $ 29,142 $ 56,518   $ 58,217
Incentive Compensation 4,132 4,054 4,243 8,186 7,709

Share-Based Compensation and Cash Grants for the Purchase of Company Stock

1,758 1,685 2,483 3,443 3,158
Commission Expense 1,754 1,536 1,553 3,290 3,216
Retirement and Other Benefits 3,481 4,390 3,804 7,871 8,766
Payroll Taxes 2,437 3,818 2,335 6,255 6,374
Medical, Dental, and Life Insurance 2,239 2,437 2,438 4,676 4,661
Separation Expense     405     417     802     822     1,481
Total Salaries and Benefits   $ 44,037   $ 47,024   $ 46,800   $ 91,061   $ 93,582
 
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)     2012     2012     2011     2011     2011
Commercial
Commercial and Industrial $ 781,688 $ 788,718 $ 817,170 $ 790,294 $ 815,912
Commercial Mortgage 961,984 948,196 938,250 922,075 872,283
Construction 97,668 110,184 98,669 69,635 81,432
  Lease Financing     281,020     285,860     311,928     312,159     316,776
Total Commercial     2,122,360     2,132,958     2,166,017     2,094,163     2,086,403
Consumer
Residential Mortgage 2,401,331 2,319,485 2,215,892 2,130,589 2,130,335
Home Equity 766,839 773,643 780,691 775,105 783,582
Automobile 194,339 193,851 192,506 191,497 191,739
  Other 1     186,614     178,995     183,198     157,118     159,414
Total Consumer     3,549,123     3,465,974     3,372,287     3,254,309     3,265,070
Total Loans and Leases   $ 5,671,483   $ 5,598,932   $ 5,538,304   $ 5,348,472   $ 5,351,473
 
 
Higher Risk Loans Outstanding                    
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands)     2012     2012     2011     2011     2011
Residential Home Building 2 $ 8,777 $ 13,148 $ 13,475 $ 15,379 $ 16,186
Residential Land Loans 3 16,703 17,602 18,163 18,305 19,960
Home Equity Loans 4 22,029 21,359 21,413 22,321 21,778
Air Transportation 5     27,633     27,548     36,144     36,511     36,961
Total Higher Risk Loans   $ 75,142   $ 79,657   $ 89,195   $ 92,516   $ 94,885
 
1 Comprised of other revolving credit, installment, and lease financing.

2 Residential home building loans were $48.6 million as of June 30, 2012. Higher risk loans within this segment are defined as those loans with a well-defined weakness or weaknesses that jeopardizes the orderly repayment of the loan.

3 We consider all of our residential land loans, which are consumer loans secured by unimproved lots, to be of higher risk due to the volatility in the value of the underlying collateral.

4 Higher risk home equity loans are defined as those loans originated in 2005 or later, with current monitoring credit scores below 600, and with original loan-to-value ratios greater than 70%.

5 We consider all of our air transportation leases to be of higher risk due to the weak financial profile of the industry.

 
 
Deposits                    
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands)     2012     2012     2011     2011     2011
Consumer $ 5,360,325 $ 5,377,804 $ 5,241,827 $ 5,137,548 $ 5,073,101
Commercial 4,403,095 4,307,931 4,320,712 4,275,915 4,165,435
Public and Other     1,784,573     935,435     1,030,084     595,550     740,498
Total Deposits   $ 11,547,993   $ 10,621,170   $ 10,592,623   $ 10,009,013   $ 9,979,034
 
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)   2012   2012   2011   2011   2011
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial $ 5,778 $ 5,852 $ 6,243 $ 6,593 $ 1,839
Commercial Mortgage 2,737 2,113 2,140 2,188 3,290
Construction 1,182 1,482 2,080 - 288
    Lease Financing     -       4       5       6       8  
  Total Commercial     9,697       9,451       10,468       8,787       5,425  
Consumer
Residential Mortgage 26,803 26,356 25,256 23,779 23,970
Home Equity 2,425 2,069 2,024 1,863 2,155
    Other 1     -       -       -       -       16  
  Total Consumer     29,228       28,425       27,280       25,642       26,141  
Total Non-Accrual Loans and Leases     38,925       37,876       37,748       34,429       31,566  
Foreclosed Real Estate     2,569       3,530       3,042       3,341       2,590  
Total Non-Performing Assets   $ 41,494     $ 41,406     $ 40,790     $ 37,770     $ 34,156  
 
Accruing Loans and Leases Past Due 90 Days or More
Commercial
  Commercial and Industrial   $ 1     $ 2     $ 1     $ -     $ -  
Total Commercial     1       2       1       -       -  
Consumer
Residential Mortgage 4,229 6,590 6,422 7,664 5,854
Home Equity 2,445 2,829 2,194 2,639 1,147
Automobile 98 124 170 138 167
  Other 1     395       543       435       414       604  
Total Consumer     7,167       10,086       9,221       10,855       7,772  
Total Accruing Loans and Leases Past Due 90 Days or More   $ 7,168     $ 10,088     $ 9,222     $ 10,855     $ 7,772  

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

  $ 31,124     $ 29,539     $ 33,703     $ 33,140     $ 28,193  
Total Loans and Leases   $ 5,671,483     $ 5,598,932     $ 5,538,304     $ 5,348,472     $ 5,351,473  
 
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases     0.69 %     0.68 %     0.68 %     0.64 %     0.59 %
 

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

    0.73 %     0.74 %     0.74 %     0.71 %     0.64 %
 

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

    0.51 %     0.53 %     0.56 %     0.52 %     0.34 %
 

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

    0.87 %     0.87 %     0.85 %     0.82 %     0.83 %
 

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

    0.86 %     0.92 %     0.90 %     0.91 %     0.78 %
 
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter $ 41,406 $ 40,790 $ 37,770 $ 34,156 $ 34,592
Additions 7,574 5,334 8,653 8,552 6,079
Reductions
Payments (2,942 ) (2,524 ) (1,173 ) (3,237 ) (2,363 )
Return to Accrual Status (2,085 ) (535 ) (2,421 ) (401 ) (3,226 )
Sales of Foreclosed Real Estate (2,247 ) (1,049 ) (1,320 ) (157 ) (497 )
  Charge-offs/Write-downs     (212 )     (610 )     (719 )     (1,143 )     (429 )
Total Reductions     (7,486 )     (4,718 )     (5,633 )     (4,938 )     (6,515 )
Balance at End of Quarter   $ 41,494     $ 41,406     $ 40,790     $ 37,770     $ 34,156  
 
 

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,   June 30,
(dollars in thousands)   2012   2012   2011   2012   2011
Balance at Beginning of Period $ 141,025 $ 144,025 $ 152,777 $ 144,025 $ 152,777
Loans and Leases Charged-Off
Commercial
Commercial and Industrial (1,078 ) (1,431 ) (1,507 ) (2,509 ) (3,164 )
Construction - (330 ) - (330 ) -
Consumer
Residential Mortgage (1,369 ) (1,580 ) (1,977 ) (2,949 ) (3,728 )
Home Equity (1,657 ) (2,441 ) (3,252 ) (4,098 ) (4,611 )
Automobile (438 ) (526 ) (797 ) (964 ) (1,826 )
    Other 1     (1,394 )     (1,451 )     (1,488 )     (2,845 )     (3,052 )
Total Loans and Leases Charged-Off     (5,936 )     (7,759 )     (9,021 )     (13,695 )     (16,381 )
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial 524 1,933 399 2,457 971
Commercial Mortgage 10 24 - 34 -
Lease Financing 11 72 44 83 94
Consumer
Residential Mortgage 376 666 622 1,042 881
Home Equity 165 570 750 735 1,089
Automobile 482 538 652 1,020 1,301
    Other 1     577       605       572       1,182       1,372  
Total Recoveries on Loans and Leases Previously Charged-Off     2,145       4,408       3,039       6,553       5,708  
Net Loans and Leases Charged-Off (3,791 ) (3,351 ) (5,982 ) (7,142 ) (10,673 )
Provision for Credit Losses     628       351       3,600       979       8,291  
Balance at End of Period 2   $ 137,862     $ 141,025     $ 150,395     $ 137,862     $ 150,395  
 
Components
Allowance for Loan and Lease Losses $ 132,443 $ 135,606 $ 144,976 $ 132,443 $ 144,976
Reserve for Unfunded Commitments     5,419       5,419       5,419       5,419       5,419  
Total Reserve for Credit Losses   $ 137,862     $ 141,025     $ 150,395     $ 137,862     $ 150,395  
 
Average Loans and Leases Outstanding   $ 5,641,588     $ 5,563,358     $ 5,326,123     $ 5,602,473     $ 5,318,993  
 
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized) 0.27 % 0.24 % 0.45 % 0.26 % 0.40 %
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding 2.34 % 2.42 % 2.71 % 2.34 % 2.71 %
 
 
1 Comprised of other revolving credit, installment, and lease financing.
2 Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.
 
Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information   Table 13a
  Retail   Commercial   Investment   Treasury   Consolidated
(dollars in thousands)   Banking   Banking   Services   and Other   Total
Three Months Ended June 30, 2012
Net Interest Income $ 38,680 $ 30,817 $ 3,585 $ 22,299 $ 95,381
Provision for Credit Losses     3,334       157       301       (3,164 )     628  
Net Interest Income After Provision for Credit Losses 35,346 30,660 3,284 25,463 94,753
Noninterest Income 21,389 8,552 15,058 1,849 46,848
Noninterest Expense     (43,797 )     (21,597 )     (13,875 )     (1,478 )     (80,747 )
Income Before Provision for Income Taxes 12,938 17,615 4,467 25,834 60,854
Provision for Income Taxes     (4,787 )     (6,035 )     (1,653 )     (7,632 )     (20,107 )
Net Income     8,151       11,580       2,814       18,202       40,747  
Total Assets as of June 30, 2012   $ 3,246,917     $ 2,289,516     $ 287,669     $ 8,091,524     $ 13,915,626  
 
 
Three Months Ended June 30, 2011 1
Net Interest Income $ 43,890 $ 34,686 $ 3,792 $ 15,131 $ 97,499
Provision for Credit Losses     5,585       397       -       (2,382 )     3,600  
Net Interest Income After Provision for Credit Losses 38,305 34,289 3,792 17,513 93,899
Noninterest Income 21,697 9,741 15,234 2,791 49,463
Noninterest Expense     (52,268 )     (24,236 )     (15,043 )     (2,227 )     (93,774 )
Income Before Provision for Income Taxes 7,734 19,794 3,983 18,077 49,588
Provision for Income Taxes     (2,861 )     (6,946 )     (1,474 )     (3,159 )     (14,440 )
Net Income     4,873       12,848       2,509       14,918       35,148  
Total Assets as of June 30, 2011   $ 3,058,041     $ 2,266,089     $ 221,347     $ 7,615,727     $ 13,161,204  
 
 

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
  Retail   Commercial   Investment   Treasury   Consolidated
(dollars in thousands)   Banking   Banking   Services   and Other   Total
Six Months Ended June 30, 2012
Net Interest Income $ 78,649 $ 62,259 $ 7,131 $ 45,290 $ 193,329
Provision for Credit Losses     7,364       (511 )     290       (6,164 )     979  
Net Interest Income After Provision for Credit Losses 71,285 62,770 6,841 51,454 192,350
Noninterest Income 40,525 20,129 29,132 5,144 94,930
Noninterest Expense     (88,304 )     (45,127 )     (29,006 )     (3,517 )     (165,954 )
Income Before Provision for Income Taxes 23,506 37,772 6,967 53,081 121,326
Provision for Income Taxes     (8,697 )     (9,052 )     (2,578 )     (16,442 )     (36,769 )
Net Income     14,809       28,720       4,389       36,639       84,557  
Total Assets as of June 30, 2012   $ 3,246,917     $ 2,289,516     $ 287,669     $ 8,091,524     $ 13,915,626  
 
 
Six Months Ended June 30, 2011 1
Net Interest Income $ 88,314 $ 69,689 $ 7,655 $ 31,538 $ 197,196
Provision for Credit Losses     10,628       209       (140 )     (2,406 )     8,291  
Net Interest Income After Provision for Credit Losses 77,686 69,480 7,795 33,944 188,905
Noninterest Income 41,817 18,797 30,283 12,488 103,385
Noninterest Expense     (96,087 )     (48,738 )     (30,447 )     (4,584 )     (179,856 )
Income Before Provision for Income Taxes 23,416 39,539 7,631 41,848 112,434
Provision for Income Taxes     (8,664 )     (13,748 )     (2,824 )     (9,690 )     (34,926 )
Net Income     14,752       25,791       4,807       32,158       77,508  
Total Assets as of June 30, 2011   $ 3,058,041     $ 2,266,089     $ 221,347     $ 7,615,727     $ 13,161,204  
 
 

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)   2012   2012   2011   2011   2011
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases $ 63,910 $ 64,691 $ 64,760 $ 65,344 $ 65,542
Income on Investment Securities
Available-for-Sale 16,988 17,713 19,107 23,097 23,490
Held-to-Maturity 25,054 26,413 23,608 20,344 20,553
Deposits 1 2 2 6 2
Funds Sold 119 129 120 160 297
Other     281     280       280     279     279
Total Interest Income     106,353     109,228       107,877     109,230     110,163
Interest Expense
Deposits 3,219 3,473 3,736 4,561 4,792
Securities Sold Under Agreements to Repurchase 7,250 7,304 7,392 7,400 7,338
Funds Purchased 5 5 5 4 5
Long-Term Debt     498     498       498     499     529
Total Interest Expense     10,972     11,280       11,631     12,464     12,664
Net Interest Income 95,381 97,948 96,246 96,766 97,499
Provision for Credit Losses     628     351       2,219     2,180     3,600
Net Interest Income After Provision for Credit Losses     94,753     97,597       94,027     94,586     93,899
Noninterest Income
Trust and Asset Management 11,195 10,918 11,025 10,788 11,427
Mortgage Banking 7,581 5,050 3,401 5,480 2,661
Service Charges on Deposit Accounts 9,225 9,591 9,606 9,820 9,375
Fees, Exchange, and Other Service Charges 12,326 12,399 12,401 16,219 16,662
Investment Securities Gains (Losses), Net - (90 ) 282 - -
Insurance 2,399 2,278 2,312 2,664 3,210
Other     4,122     7,936       4,380     5,892     6,128
Total Noninterest Income     46,848     48,082       43,407     50,863     49,463
Noninterest Expense
Salaries and Benefits 44,037 47,024 44,927 44,307 46,800
Net Occupancy 10,058 10,516 11,253 11,113 10,476
Net Equipment 4,669 5,826 4,748 4,662 4,741
Professional Fees 2,386 2,132 1,926 2,245 2,294
FDIC Insurance 2,088 2,071 2,027 2,065 2,010
Other     17,509     17,638       19,501     19,563     27,453
Total Noninterest Expense     80,747     85,207       84,382     83,955     93,774
Income Before Provision for Income Taxes 60,854 60,472 53,052 61,494 49,588
Provision for Income Taxes     20,107     16,662       13,823     18,188     14,440
Net Income   $ 40,747   $ 43,810     $ 39,229   $ 43,306   $ 35,148
 
Basic Earnings Per Share $ 0.90 $ 0.96 $ 0.85 $ 0.93 $ 0.74
Diluted Earnings Per Share $ 0.90 $ 0.95 $ 0.85 $ 0.92 $ 0.74
 
Balance Sheet Totals
Loans and Leases $ 5,671,483 $ 5,598,932 $ 5,538,304 $ 5,348,472 $ 5,351,473
Total Assets 13,915,626 13,759,409 13,846,391 13,304,758 13,161,204
Total Deposits 11,547,993 10,621,170 10,592,623 10,009,013 9,979,034
Total Shareholders' Equity 1,003,825 995,897 1,002,667 1,017,775 1,003,450
 
Performance Ratios
Return on Average Assets 1.19 % 1.29 % 1.17 % 1.31 % 1.09 %
Return on Average Shareholders' Equity 16.19 17.26 15.23 16.80 13.86
Efficiency Ratio 1 56.77 58.35 60.42 56.87 63.81
Net Interest Margin 2 2.98 3.06 3.04 3.09 3.16
 
 
1 The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
2 The net interest margin is defined as net interest income, on a fully-taxable equivalent basis, as a percentage of average earning assets.
 
Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends   Table 15  
  Five Months Ended   Year Ended  
($ in millions; jobs in thousands)   May 31, 2012     December 31, 2011     December 31, 2010  
Hawaii Economic Trends        
State General Fund Revenues 1 $ 2,188.6 10.6 % $ 4,662.5 8.1 % $ 4,314.1 7.4 %
General Excise and Use Tax Revenue 1 $ 1,190.7 7.3 $ 2,588.5 8.8 $ 2,379.9 3.6
Jobs 2 597.1 1.0 592.1 0.9 586.8 (0.8 )
                                   
June 30, March 31, December 31,  
(spot rates)       2012       2012       2011         2010     2009    
Unemployment 3
Statewide, seasonally adjusted 6.4 % 6.4 % 6.2 % 6.3 % 6.9 %
 
Oahu 6.4 5.7 5.4 4.8 5.4
Island of Hawaii 10.1 9.2 8.9 8.6 9.5
Maui 7.5 7.1 7.1 7.4 8.8
Kauai 8.7 8.1 7.8 7.8 8.7
                                   
June 30, March 31, December 31,  
(percentage change, except months of inventory)       2012     2012     2011     2010     2009    
Housing Trends (Single Family Oahu) 4
Median Home Price 8.7 % 10.4 % (3.0 ) % 3.1 % (7.3 ) %
Home Sales Volume (units) 0.4 % (1.3 ) % (2.7 ) % 13.4 % (1.8 ) %
Months of Inventory 3.9 4.0 4.8 6.0 6.8
                                   
Monthly Visitor Arrivals, Percentage Change
(in thousands)           Seasonally Adjusted     from Previous Month  
Tourism 2
 
April 30, 2012 637.2 (4.4 ) %
March 31, 2012 666.2 5.1
February 29, 2012 634.1 (2.3 )
January 31, 2012 649.2 3.0
December 31, 2011 630.4 2.7
November 30, 2011 613.8 1.7
October 31, 2011 603.4 (1.2 )
September 30, 2011 610.6 3.8
August 31, 2011 588.4 0.9
July 31, 2011 582.9 1.2
June 30, 2011 575.9 (0.1 )
May 31, 2011 576.6 (0.8 )
April 30, 2011 581.5 (0.9 )
March 31, 2011 586.9 (2.8 )
February 28, 2011 603.8 (0.3 )
January 31, 2011 605.4 2.2
December 31, 2010 592.6 -
November 30, 2010 592.9 (1.5 )
October 31, 2010 601.7 2.5
September 30, 2010 587.3 1.0
August 31, 2010 581.7 (2.5 )
July 31, 2010 596.6 3.7
June 30, 2010 575.0 0.2
May 31, 2010 573.9 0.9
April 30, 2010 568.9 1.9
March 31, 2010 558.1 2.7
 
 

1 Source: Hawaii Department of Business, Economic Development & Tourism.

2 Source: University of Hawaii Economic Research Organization. Year-to-date figures.

3 Source: University of Hawaii Economic Research Organization, State of Hawaii Department of Labor and Industrial Relations.

4 Source: Honolulu Board of REALTORS.

Note: Certain prior period seasonally adjusted information has been revised.




8 of 9

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,781.18 +3.03 0.02%
S&P 500 2,067.30 +6.07 0.29%
NASDAQ 4,755.5360 +7.14 0.15%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs