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Bank Of Hawaii Corporation Third Quarter 2012 Financial Results

Conference Call Information

The Company will review its third quarter 2012 financial results today at 8:00 a.m. Hawaii Time. The conference call will be accessible via teleconference and the Investor Relations link of Bank of Hawaii Corporation’s web site, www.boh.com. Conference call participants in the United States should dial 888-299-8538 and international participants should dial 617-786-2902. Use the pass code “Bank of Hawaii” to access the call. A replay of the call will be available for one week beginning Monday, October 22, 2012 by dialing 888-286-8010 in the United States or 617-801-6888 internationally and entering the pass code number 71907319 when prompted. A replay will also be available via the Investor Relations link of the Company’s web site, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements", 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 Nine Months Ended
September 30, June 30, September 30, September 30,
(dollars in thousands, except per share amounts)   2012   2012   2011   2012   2011

For the Period:

Operating Results
Net Interest Income $ 93,632 $ 95,381 $ 96,766 $ 286,961 $ 293,962
Provision for Credit Losses - 628 2,180 979 10,471
Total Noninterest Income 52,374 46,848 50,863 147,304 154,248
Total Noninterest Expense 84,878 80,747 83,955 250,832 263,811
Net Income 41,232 40,747 43,306 125,789 120,814
Basic Earnings Per Share 0.92 0.90 0.93 2.78 2.55
Diluted Earnings Per Share 0.92 0.90 0.92 2.77 2.54
Dividends Declared Per Share 0.45 0.45 0.45 1.35 1.35
 
Performance Ratios
Return on Average Assets 1.22 % 1.19 % 1.31 % 1.23 % 1.24 %
Return on Average Shareholders' Equity 16.02 16.19 16.80 16.49 15.85
Efficiency Ratio 1 58.13 56.77 56.87 57.76 58.86
Net Interest Margin 2 2.98 2.98 3.09 3.01 3.16
Dividend Payout Ratio 3 48.91 50.00 48.39 48.56 52.94
Average Shareholders' Equity to Average Assets 7.59 7.36 7.79 7.47 7.83
 
Average Balances
Average Loans and Leases $ 5,716,421 $ 5,641,588 $ 5,340,406 $ 5,640,733 $ 5,326,209
Average Assets 13,490,835 13,750,488 13,125,077 13,640,304 13,019,898
Average Deposits 11,301,668 10,622,420 9,871,750 10,786,654 9,845,269
Average Shareholders' Equity 1,023,804 1,012,182 1,022,585 1,018,903 1,019,409
 
Market Price Per Share of Common Stock
Closing 45.62 45.95 36.40 45.62 36.40
High 48.92 49.99 47.10 49.99 49.26
Low 45.29 44.02 35.30 44.02 35.30
 
September 30, June 30, December 31, September 30,
          2012     2012     2011     2011

As of Period End:

Balance Sheet Totals
Loans and Leases $ 5,782,304 $ 5,671,483 $ 5,538,304 $ 5,348,472
Total Assets 13,382,425 13,915,626 13,846,391 13,304,758
Total Deposits 11,220,547 11,547,993 10,592,623 10,009,013
Long-Term Debt 28,065 28,075 30,696 30,705
Total Shareholders' Equity 1,024,562 1,003,825 1,002,667 1,017,775
 
Asset Quality
Allowance for Loan and Lease Losses $ 130,971 $ 132,443 $ 138,606 $ 143,410
Non-Performing Assets 40,284 41,494 40,790 37,770
 
Financial Ratios
Allowance to Loans and Leases Outstanding 2.27 % 2.34 % 2.50 % 2.68 %
Tier 1 Capital Ratio 16.12 16.41 16.68 17.57
Total Capital Ratio 17.39 17.67 17.95 18.83
Tier 1 Leverage Ratio 6.78 6.57 6.73 6.95
Total Shareholders' Equity to Total Assets 7.66 7.21 7.24 7.65
Tangible Common Equity to Tangible Assets 4 7.44 7.00 7.03 7.43
Tangible Common Equity to Risk-Weighted Assets 4 17.43 17.57 17.93 18.90
 
Non-Financial Data
Full-Time Equivalent Employees 2,304 2,312 2,370 2,381
Branches and Offices 77 77 81 82
ATMs 495 494 506 508
 
 
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  
  September 30,   June 30,   December 31,   September 30,
(dollars in thousands)     2012       2012       2011       2011  
 
Total Shareholders' Equity $ 1,024,562 $ 1,003,825 $ 1,002,667 $ 1,017,775
Less: Goodwill 31,517 31,517 31,517 31,517
  Intangible Assets     46       58       83       96  
Tangible Common Equity   $ 992,999     $ 972,250     $ 971,067     $ 986,162  
 
Total Assets $ 13,382,425 $ 13,915,626 $ 13,846,391 $ 13,304,758
Less: Goodwill 31,517 31,517 31,517 31,517
  Intangible Assets     46       58       83       96  
Tangible Assets   $ 13,350,862     $ 13,884,051     $ 13,814,791     $ 13,273,145  
 

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

$ 5,697,581 $ 5,532,285 $ 5,414,481 $ 5,218,651
 
Total Shareholders' Equity to Total Assets 7.66 % 7.21 % 7.24 % 7.65 %
Tangible Common Equity to Tangible Assets (Non-GAAP) 7.44 % 7.00 % 7.03 % 7.43 %
 
Tier 1 Capital Ratio 16.12 % 16.41 % 16.68 % 17.57 %
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 17.43 % 17.57 % 17.93 % 18.90 %
 
Bank of Hawaii Corporation and Subsidiaries
Net Significant Income (Expense) Items   Table 2
  Three Months Ended   Nine Months Ended
September 30,   June 30,   September 30, September 30,
(dollars in thousands)   2012   2012     2011       2012       2011  
Investment Securities Gains, Net - - - -   6,084
Gain on Mutual Fund Sale - - 1,956 - 1,956
Gains (Losses) on Disposal of Leased Equipment - - - 2,473 -
Decrease in Allowance for Loan and Lease Losses 1,472 3,163 1,566 7,635 3,948
Bank of Hawaii Charitable Foundation - - (2,000 ) - (2,000 )
PC Refresh - - - (1,163 ) -
Legal Settlement Related to OD Claims     -     -     -       -       (9,000 )

Significant Income (Expense) Items Before the Provision (Benefit) for Income Taxes

   

1,472

    3,163     1,522       8,945       988  
Income Taxes Impact Related to Lease Transactions - - - (2,733 ) -
Income Tax Impact     515     1,107     533       1,915       346  
Net Significant Income (Expense) Items   $ 957   $ 2,056   $ 989     $ 9,763     $ 642  
 
Bank of Hawaii 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)   2012   2012   2011     2012     2011
Interest Income  
Interest and Fees on Loans and Leases $ 64,668 $ 63,910 $ 65,344 $ 193,269 $ 197,479
Income on Investment Securities
Available-for-Sale 15,922 16,988 23,097 50,623 84,256
Held-to-Maturity 23,232 25,054 20,344 74,699 48,530
Deposits 3 1 6 6 6
Funds Sold 105 119 160 353 708
Other     283     281     279     844       837
Total Interest Income     104,213     106,353     109,230     319,794       331,816
Interest Expense
Deposits 2,931 3,219 4,561 9,623 14,585
Securities Sold Under Agreements to Repurchase 7,185 7,250 7,400 21,739 21,779
Funds Purchased 7 5 4 17 15
Long-Term Debt     458     498     499     1,454       1,475
Total Interest Expense     10,581     10,972     12,464     32,833       37,854
Net Interest Income 93,632 95,381 96,766 286,961 293,962
Provision for Credit Losses     -     628     2,180     979       10,471
Net Interest Income After Provision for Credit Losses     93,632     94,753     94,586     285,982       283,491
Noninterest Income
Trust and Asset Management 11,050 11,195 10,788 33,163 34,021
Mortgage Banking 11,745 7,581 5,480 24,376 11,263
Service Charges on Deposit Accounts 9,346 9,225 9,820 28,162 29,127
Fees, Exchange, and Other Service Charges 11,907 12,326 16,219 36,632 47,826
Investment Securities Gains (Losses), Net 13 - - (77 ) 6,084
Insurance 2,326 2,399 2,664 7,003 8,645
Other     5,987     4,122     5,892     18,045       17,282
Total Noninterest Income     52,374     46,848     50,863     147,304       154,248
Noninterest Expense
Salaries and Benefits 47,231 44,037 44,307 138,292 137,889
Net Occupancy 10,524 10,058 11,113 31,098 31,916
Net Equipment 4,523 4,669 4,662 15,018 14,101
Professional Fees 2,494 2,386 2,245 7,012 6,697
FDIC Insurance 1,822 2,088 2,065 5,981 7,319
Other     18,284     17,509     19,563     53,431       65,889
Total Noninterest Expense     84,878     80,747     83,955     250,832       263,811
Income Before Provision for Income Taxes 61,128 60,854 61,494 182,454 173,928
Provision for Income Taxes     19,896     20,107     18,188     56,665       53,114
Net Income   $ 41,232   $ 40,747   $ 43,306   $ 125,789     $ 120,814
Basic Earnings Per Share $ 0.92 $ 0.90 $ 0.93 $ 2.78 $ 2.55
Diluted Earnings Per Share $ 0.92 $ 0.90 $ 0.92 $ 2.77 $ 2.54
Dividends Declared Per Share $ 0.45 $ 0.45 $ 0.45 $ 1.35 $ 1.35
Basic Weighted Average Shares 44,913,348 45,221,293 46,806,439 45,280,541 47,358,049
Diluted Weighted Average Shares     45,050,638     45,347,368     46,934,140     45,421,624       47,531,066
 
Bank of Hawaii 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)   2012   2012   2011   2012   2011
Net Income $ 41,232 $ 40,747 $ 43,306 $ 125,789   $ 120,814
Other Comprehensive Income, Net of Tax:
Net Unrealized Gains on Investment Securities 9,770 3,387 18,611 6,703 18,376
  Defined Benefit Plans     152     153     365     458     1,413
Other Comprehensive Income 9,922 3,540 18,976 7,161 19,789
                       
Comprehensive Income   $ 51,154   $ 44,287   $ 62,282   $ 132,950   $ 140,603
 
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition   Table 5  
  September 30,   June 30,   December 31,   September 30,
(dollars in thousands)     2012       2012       2011       2011  
Assets
Interest-Bearing Deposits $ 4,673 $ 3,057 $ 3,036 $ 3,543
Funds Sold 251,664 499,338 512,384 242,062
Investment Securities
Available-for-Sale 3,124,209 3,339,472 3,451,885 4,448,898
Held to Maturity (Fair Value of $3,587,997; $3,828,954; $3,754,206; and $2,610,081) 3,475,259 3,729,665 3,657,796 2,520,422
Loans Held for Sale 25,971 14,223 18,957 12,745
Loans and Leases 5,782,304 5,671,483 5,538,304 5,348,472
Allowance for Loan and Lease Losses     (130,971 )     (132,443 )     (138,606 )     (143,410 )
Net Loans and Leases     5,651,333       5,539,040       5,399,698       5,205,062  
Total Earning Assets     12,533,109       13,124,795       13,043,756       12,432,732  
Cash and Noninterest-Bearing Deposits 153,599 131,845 154,489 206,875
Premises and Equipment 107,144 107,421 103,550 104,509
Customers' Acceptances 242 176 476 749
Accrued Interest Receivable 47,192 45,044 43,510 43,319
Foreclosed Real Estate 3,067 2,569 3,042 3,341
Mortgage Servicing Rights 23,980 23,254 24,279 23,990
Goodwill 31,517 31,517 31,517 31,517
Other Assets     482,575       449,005       441,772       457,726  
Total Assets   $ 13,382,425     $ 13,915,626     $ 13,846,391     $ 13,304,758  
 
Liabilities
Deposits
Noninterest-Bearing Demand $ 2,985,561 $ 3,105,798 $ 2,850,923 $ 2,702,296
Interest-Bearing Demand 2,034,319 2,063,070 2,005,983 1,745,812
Savings 4,480,733 4,435,894 4,398,638 4,449,351
Time     1,719,934       1,943,231       1,337,079       1,111,554  
Total Deposits     11,220,547       11,547,993       10,592,623       10,009,013  
Funds Purchased 10,942 13,756 10,791 9,882
Short-Term Borrowings - - - 6,400
Securities Sold Under Agreements to Repurchase 818,080 1,065,653 1,925,998 1,929,266
Long-Term Debt 28,065 28,075 30,696 30,705
Banker's Acceptances 242 176 476 749
Retirement Benefits Payable 41,872 41,812 46,949 30,704
Accrued Interest Payable 5,997 5,114 5,330 6,751
Taxes Payable and Deferred Taxes 94,369 86,095 95,840 114,842
Other Liabilities     137,749       123,127       135,021       148,671  
Total Liabilities     12,357,863       12,911,801       12,843,724       12,286,983  
Shareholders' Equity

Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: September 30, 2012 - 57,315,093 / 45,004,813; June 30, 2012 - 57,301,892 / 45,248,277; December 31, 2011 - 57,134,470 / 45,947,116; and September 30, 2011 - 57,132,310 / 46,570,413)

571 571 571 571
Capital Surplus 513,758 511,729 507,558 503,255
Accumulated Other Comprehensive Income 42,424 32,502 35,263 46,754
Retained Earnings 1,065,245 1,044,588 1,003,938 986,202

Treasury Stock, at Cost (Shares: September 30, 2012 - 12,310,280; June 30, 2012 - 12,053,615; December 31, 2011 - 11,187,354; and September 30, 2011 - 10,561,897)

    (597,436 )     (585,565 )     (544,663 )     (519,007 )
Total Shareholders' Equity     1,024,562       1,003,825       1,002,667       1,017,775  
Total Liabilities and Shareholders' Equity   $ 13,382,425     $ 13,915,626     $ 13,846,391     $ 13,304,758  
 
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 - - - - 125,789 - 125,789
Other Comprehensive Income - - - 7,161 - - 7,161
Share-Based Compensation - - 5,687 - - - 5,687

Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits

471,104 - 513 - (3,023 ) 13,472 10,962
Common Stock Repurchased (1,413,407 ) - - - - (66,245 ) (66,245 )
Cash Dividends Paid ($1.35 per share)   -       -     -     -     (61,459 )     -       (61,459 )
Balance as of September 30, 2012   45,004,813     $ 571   $ 513,758   $ 42,424   $ 1,065,245     $ (597,436 )   $ 1,024,562  
 
Balance as of December 31, 2010 48,097,672 $ 570 $ 500,888 $ 26,965 $ 932,629 $ (449,919 ) $ 1,011,133
Net Income - - - - 120,814 - 120,814
Other Comprehensive Income - - - 19,789 - - 19,789
Share-Based Compensation - - 2,001 - - - 2,001

Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits

309,108 1 366 - (3,193 ) 13,303 10,477
Common Stock Repurchased (1,836,367 ) - - - - (82,391 ) (82,391 )
Cash Dividends Paid ($1.35 per share)   -       -     -     -     (64,048 )     -       (64,048 )
Balance as of September 30, 2011   46,570,413     $ 571   $ 503,255   $ 46,754   $ 986,202     $ (519,007 )   $ 1,017,775  
 
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
September 30, 2012 June 30, 2012 September 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 $ 4.0 $ - 0.33 % $ 3.0 $ - 0.12 % $ 3.7 $ - 0.56 %
Funds Sold 221.5 0.1 0.19 237.8 0.1 0.20 309.4 0.2 0.20
Investment Securities
Available-for-Sale 3,247.8 18.3 2.26 3,410.4 19.4 2.27 4,309.3 23.5 2.18
Held-to-Maturity 3,617.3 23.2 2.57 3,788.9 25.1 2.65 2,511.0 20.3 3.24
Loans Held for Sale 15.8 0.2 4.32 12.1 0.1 4.22 9.2 0.1 4.87
Loans and Leases 1
Commercial and Industrial 797.2 7.7 3.86 786.3 7.7 3.93 815.5 8.2 3.97
Commercial Mortgage 993.2 10.8 4.32 953.5 10.4 4.40 876.7 10.7 4.85
Construction 100.1 1.3 4.97 99.7 1.3 5.07 74.5 1.0 5.15
Commercial Lease Financing 278.5 1.7 2.42 284.5 1.7 2.36 314.6 2.0 2.61
Residential Mortgage 2,391.8 28.1 4.70 2,371.7 27.9 4.71 2,129.8 27.8 5.23
Home Equity 770.2 8.3 4.28 772.3 8.4 4.36 780.5 9.3 4.72
Automobile 194.9 2.9 5.90 193.7 2.9 6.03 191.4 3.2 6.66
  Other 2     190.5     3.9   8.09       179.9     3.6   8.12       157.4     3.0   7.50  
Total Loans and Leases     5,716.4     64.7   4.51       5,641.6     63.9   4.54       5,340.4     65.2   4.86  
Other     80.1     0.3   1.41       80.0     0.3   1.41       79.9     0.3   1.40  
Total Earning Assets 3     12,902.9     106.8   3.30       13,173.8     108.9   3.31       12,562.9     109.6   3.48  
Cash and Noninterest-Bearing Deposits 134.9 131.7 135.1
Other Assets   453.0   445.0   427.1
Total Assets $ 13,490.8 $ 13,750.5 $ 13,125.1
 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand 1,968.8 0.1 0.03 1,906.1 0.1 0.03 1,772.5 0.2 0.04
Savings 4,456.2 1.0 0.09 4,444.5 1.1 0.10 4,497.1 1.8 0.16
  Time     1,823.2     1.8   0.38       1,253.9     2.0   0.63       1,069.4     2.6   0.96  
Total Interest-Bearing Deposits     8,248.2     2.9   0.14       7,604.5     3.2   0.17       7,339.0     4.6   0.25  
Short-Term Borrowings 18.5 - 0.15 15.0 - 0.14 19.0 - 0.08
Securities Sold Under Agreements to Repurchase 853.0 7.2 3.30 1,808.5 7.3 1.59 1,908.9 7.4 1.52
Long-Term Debt     28.0     0.5   6.52       30.6     0.5   6.51       30.7     0.5   6.50  
Total Interest-Bearing Liabilities     9,147.7     10.6   0.46       9,458.6     11.0   0.46       9,297.6     12.5   0.53  
Net Interest Income $ 96.2 $ 97.9 $ 97.1
Interest Rate Spread 2.84 % 2.85 % 2.95 %
Net Interest Margin 2.98 % 2.98 % 3.09 %
Noninterest-Bearing Demand Deposits 3,053.5 3,017.9 2,532.8
Other Liabilities 265.8 261.8 272.1
Shareholders' Equity   1,023.8   1,012.2   1,022.6
Total Liabilities and Shareholders' Equity $ 13,490.8 $ 13,750.5 $ 13,125.1
 
 

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

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

3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $2,529,000, $2,481,000, and $364,000 for the three months ended September 30, 2012, June 30, 2012, and September 30, 2011, respectively.

 

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis   Table 7b
    Nine Months Ended   Nine Months Ended
September 30, 2012 September 30, 2011
Average   Income/   Yield/ Average   Income/   Yield/
(dollars in millions)   Balance   Expense   Rate   Balance   Expense   Rate
Earning Assets
Interest-Bearing Deposits $ 3.4 $ - 0.24 % $ 4.4 $ - 0.18 %
Funds Sold 240.5 0.4 0.19 427.8 0.7 0.22
Investment Securities
Available-for-Sale 3,369.5 57.4 2.27 4,667.6 85.4 2.44
Held-to-Maturity 3,714.2 74.7 2.68 1,949.2 48.6 3.32
Loans Held for Sale 13.3 0.4 4.26 9.7 0.3 4.46
Loans and Leases 1
Commercial and Industrial 796.5 23.5 3.94 788.0 23.8 4.03
Commercial Mortgage 962.9 31.7 4.40 873.1 31.9 4.88
Construction 101.1 3.9 5.13 78.1 3.0 5.14
Commercial Lease Financing 285.7 5.1 2.37 325.8 6.6 2.72
Residential Mortgage 2,342.8 83.8 4.77 2,114.7 84.2 5.31
Home Equity 773.8 25.2 4.35 787.2 28.4 4.82
Automobile 193.9 8.8 6.05 195.7 10.1 6.91
  Other 2     184.0     11.2   8.10       163.6     9.2   7.51  
Total Loans and Leases     5,640.7     193.2   4.57       5,326.2     197.2   4.94  
Other     80.0     0.8   1.41       79.9     0.8   1.40  
Total Earning Assets 3     13,061.6     326.9   3.34       12,464.8     333.0   3.56  
Cash and Noninterest-Bearing Deposits 134.6 133.0
Other Assets   444.1   422.1
Total Assets $ 13,640.3 $ 13,019.9
 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand 1,914.2 0.3 0.03 1,782.2 0.6 0.04
Savings 4,446.6 3.5 0.10 4,518.9 5.9 0.18
  Time     1,447.1     5.8   0.53       1,041.7     8.1   1.04  
Total Interest-Bearing Deposits     7,807.9     9.6   0.16       7,342.8     14.6   0.27  
Short-Term Borrowings 16.4 - 0.14 17.4 - 0.12
Securities Sold Under Agreements to Repurchase 1,523.4 21.8 1.88 1,844.7 21.8 1.56
Long-Term Debt     29.8     1.5   6.51       32.0     1.5   6.15  
Total Interest-Bearing Liabilities     9,377.5     32.9   0.46       9,236.9     37.9   0.54  
Net Interest Income $ 294.0 $ 295.1
Interest Rate Spread 2.88 % 3.02 %
Net Interest Margin 3.01 % 3.16 %
Noninterest-Bearing Demand Deposits 2,978.8 2,502.5
Other Liabilities 265.1 261.1
Shareholders' Equity   1,018.9   1,019.4
Total Liabilities and Shareholders' Equity $ 13,640.3 $ 13,019.9
 
 

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 $7,080,000 and $1,142,000 for the nine months ended September 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 September 30, 2012
Compared to June 30, 2012
(dollars in millions)   Volume 1   Rate 1   Total
Change in Interest Income:    
Investment Securities
Available-for-Sale $ (0.9 ) $ (0.2 ) $ (1.1 )
Held-to-Maturity (1.2 ) (0.7 ) (1.9 )
Loans Held for Sale 0.1 - 0.1
Loans and Leases
Commercial and Industrial 0.1 (0.1 ) -
Commercial Mortgage 0.6 (0.2 ) 0.4
Residential Mortgage 0.2 - 0.2
Home Equity - (0.1 ) (0.1 )
Other 2     0.3       -       0.3  
Total Loans and Leases     1.2       (0.4 )     0.8  
Total Change in Interest Income     (0.8 )     (1.3 )     (2.1 )
 
Change in Interest Expense:
Interest-Bearing Deposits
Savings - (0.1 ) (0.1 )
Time     0.7       (0.9 )     (0.2 )
Total Interest-Bearing Deposits     0.7       (1.0 )     (0.3 )
Securities Sold Under Agreements to Repurchase     (5.2 )     5.1       (0.1 )
Total Change in Interest Expense     (4.5 )     4.1       (0.4 )
 
Change in Net Interest Income   $ 3.7     $ (5.4 )   $ (1.7 )
 
 

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

2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
 
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis   Table 8b
  Three Months Ended September 30, 2012
Compared to September 30, 2011
(dollars in millions)   Volume 1   Rate 1   Total
Change in Interest Income:    
Funds Sold $ (0.1 ) $ - $ (0.1 )
Investment Securities
Available-for-Sale (6.0 ) 0.8 (5.2 )
Held-to-Maturity 7.7 (4.8 ) 2.9
Loans Held for Sale 0.1 - 0.1
Loans and Leases
Commercial and Industrial (0.2 ) (0.3 ) (0.5 )
Commercial Mortgage 1.3 (1.2 ) 0.1
Construction 0.3 - 0.3
Commercial Lease Financing (0.2 ) (0.1 ) (0.3 )
Residential Mortgage 3.3 (3.0 ) 0.3
Home Equity (0.1 ) (0.9 ) (1.0 )
Automobile 0.1 (0.4 ) (0.3 )
Other 2     0.7       0.2       0.9  
Total Loans and Leases     5.2       (5.7 )     (0.5 )
Total Change in Interest Income     6.9       (9.7 )     (2.8 )
 
Change in Interest Expense:
Interest-Bearing Deposits
Demand - (0.1 ) (0.1 )
Savings - (0.8 ) (0.8 )
Time     1.2       (2.0 )     (0.8 )
Total Interest-Bearing Deposits     1.2       (2.9 )     (1.7 )
Securities Sold Under Agreements to Repurchase     (5.6 )     5.4       (0.2 )
Total Change in Interest Expense     (4.4 )     2.5       (1.9 )
 
Change in Net Interest Income   $ 11.3     $ (12.2 )   $ (0.9 )
 
 

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
  Nine Months Ended September 30, 2012
Compared to September 30, 2011
(dollars in millions)   Volume 1   Rate 1   Total
Change in Interest Income:    
Funds Sold $ (0.2 ) $ (0.1 ) $ (0.3 )
Investment Securities
Available-for-Sale (22.4 ) (5.6 ) (28.0 )
Held-to-Maturity 36.9 (10.8 ) 26.1
Loans Held for Sale 0.1 - 0.1
Loans and Leases
Commercial and Industrial 0.3 (0.6 ) (0.3 )
Commercial Mortgage 3.1 (3.3 ) (0.2 )
Construction 0.9 - 0.9
Commercial Lease Financing (0.8 ) (0.7 ) (1.5 )
Residential Mortgage 8.6 (9.0 ) (0.4 )
Home Equity (0.5 ) (2.7 ) (3.2 )
Automobile (0.1 ) (1.2 ) (1.3 )
Other 2     1.2       0.8       2.0  
Total Loans and Leases     12.7       (16.7 )     (4.0 )
Total Change in Interest Income     27.1       (33.2 )     (6.1 )
 
Change in Interest Expense:
Interest-Bearing Deposits
Demand - (0.3 ) (0.3 )
Savings (0.1 ) (2.3 ) (2.4 )
Time     2.5       (4.8 )     (2.3 )
Total Interest-Bearing Deposits     2.4       (7.4 )     (5.0 )
Securities Sold Under Agreements to Repurchase (4.1 ) 4.1 -
Long-Term Debt     (0.1 )     0.1       -  
Total Change in Interest Expense     (1.8 )     (3.2 )     (5.0 )
 
Change in Net Interest Income     28.9       (30.0 )     (1.1 )
 
 

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   Nine Months Ended
September 30,   June 30,   September 30, September 30,
(dollars in thousands)   2012   2012   2011   2012   2011
Salaries $ 29,312 $ 27,831 $ 28,965 $ 85,830   $ 87,182
Incentive Compensation 4,492 4,132 4,777 12,678 12,486

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

1,817 1,758 743 5,260 3,901
Commission Expense 1,750 1,754 1,572 5,040 4,788
Retirement and Other Benefits 4,322 3,481 3,634 12,193 12,400
Payroll Taxes 2,267 2,437 2,241 8,522 8,615
Medical, Dental, and Life Insurance 2,255 2,239 2,056 6,931 6,717
Separation Expense     1,016     405     319     1,838     1,800  
Total Salaries and Benefits   $ 47,231   $ 44,037   $ 44,307   $ 138,292   $ 137,889  
 
Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances   Table 10
    September 30,   June 30,   March 31,   December 31,   September 30,
(dollars in thousands)     2012     2012     2012     2011     2011
Commercial
Commercial and Industrial $ 808,621 $ 781,688 $ 788,718 $ 817,170 $ 790,294
Commercial Mortgage 1,039,556 961,984 948,196 938,250 922,075
Construction 101,818 97,668 110,184 98,669 69,635
  Lease Financing     277,328     281,020     285,860     311,928     312,159
Total Commercial     2,227,323     2,122,360     2,132,958     2,166,017     2,094,163
Consumer
Residential Mortgage 2,392,871 2,401,331 2,319,485 2,215,892 2,130,589
Home Equity 770,284 766,839 773,643 780,691 775,105
Automobile 200,788 194,339 193,851 192,506 191,497
  Other 1     191,038     186,614     178,995     183,198     157,118
Total Consumer     3,554,981     3,549,123     3,465,974     3,372,287     3,254,309
Total Loans and Leases   $ 5,782,304   $ 5,671,483   $ 5,598,932   $ 5,538,304   $ 5,348,472
 
 
Higher Risk Loans Outstanding                    
September 30, June 30, March 31, December 31, September 30,
(dollars in thousands)     2012     2012     2012     2011     2011
Residential Land Loans 2 16,513 16,703 17,602 18,163 18,305
Home Equity Loans 3 19,774 22,029 21,359 21,413 22,321
Air Transportation 4     27,765     27,633     27,548     36,144     36,511
Total Higher Risk Loans   $ 64,052   $ 66,365   $ 66,509   $ 75,720   $ 77,137
 
1 Comprised of other revolving credit, installment, and lease financing.

2 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.

3 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%.
4 We consider all of our air transportation leases to be of higher risk due to the weak financial profile of the industry.
 
 
Deposits                    
September 30, June 30, March 31, December 31, September 30,
(dollars in thousands)     2012     2012     2012     2011     2011
Consumer $ 5,369,724 $ 5,360,325 $ 5,377,804 $ 5,241,827 $ 5,137,548
Commercial 4,394,745 4,403,095 4,307,931 4,320,712 4,275,915
Public and Other     1,456,078     1,784,573     935,435     1,030,084     595,550
Total Deposits   $ 11,220,547   $ 11,547,993   $ 10,621,170   $ 10,592,623   $ 10,009,013
 
Bank of Hawaii 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)     2012     2012     2012     2011     2011
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial $ 5,635 $ 5,778 $ 5,852 $ 6,243 $ 6,593
Commercial Mortgage 2,671 2,737 2,113 2,140 2,188
Construction 953 1,182 1,482 2,080 -
    Lease Financing     -       -       4       5       6  
  Total Commercial     9,259       9,697       9,451       10,468       8,787  
Consumer
Residential Mortgage 25,456 26,803 26,356 25,256 23,779
    Home Equity     2,502       2,425       2,069       2,024       1,863  
  Total Consumer     27,958       29,228       28,425       27,280       25,642  
Total Non-Accrual Loans and Leases     37,217       38,925       37,876       37,748       34,429  
Foreclosed Real Estate     3,067       2,569       3,530       3,042       3,341  
Total Non-Performing Assets   $ 40,284     $ 41,494     $ 41,406     $ 40,790     $ 37,770  
 
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 3,988 4,229 6,590 6,422 7,664
Home Equity 2,755 2,445 2,829 2,194 2,639
Automobile 154 98 124 170 138
  Other 1     578       395       543       435       414  
Total Consumer     7,475       7,167       10,086       9,221       10,855  
Total Accruing Loans and Leases Past Due 90 Days or More   $ 7,475     $ 7,168     $ 10,088     $ 9,222     $ 10,855  

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

  $ 31,426     $ 31,124     $ 29,539     $ 33,703     $ 33,140  
Total Loans and Leases   $ 5,782,304     $ 5,671,483     $ 5,598,932     $ 5,538,304     $ 5,348,472  
 
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases     0.64 %     0.69 %     0.68 %     0.68 %     0.64 %
 

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

    0.70 %     0.73 %     0.74 %     0.74 %     0.71 %
 

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

    0.46 %     0.51 %     0.53 %     0.56 %     0.52 %
 

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

    0.84 %     0.87 %     0.87 %     0.85 %     0.82 %
 

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

    0.83 %     0.86 %     0.92 %     0.90 %     0.91 %
 
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter $ 41,494 $ 41,406 $ 40,790 $ 37,770 $ 34,156
Additions 2,878 7,574 5,334 8,653 8,552
Reductions
Payments (2,408 ) (2,942 ) (2,524 ) (1,173 ) (3,237 )
Return to Accrual Status (1,083 ) (2,085 ) (535 ) (2,421 ) (401 )
Sales of Foreclosed Real Estate (424 ) (2,247 ) (1,049 ) (1,320 ) (157 )
  Charge-offs/Write-downs     (173 )     (212 )     (610 )     (719 )     (1,143 )
Total Reductions     (4,088 )     (7,486 )     (4,718 )     (5,633 )     (4,938 )
Balance at End of Quarter   $ 40,284     $ 41,494     $ 41,406     $ 40,790     $ 37,770  
 
 
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   Nine Months Ended
September 30,   June 30,   September 30, September 30,
(dollars in thousands)     2012       2012       2011       2012       2011  
Balance at Beginning of Period $ 137,862 $ 141,025 $ 150,395 $ 144,025   $ 152,777
Loans and Leases Charged-Off
Commercial
Commercial and Industrial (519 ) (1,078 ) (4,215 ) (3,028 ) (7,379 )
Construction - - - (330 ) -
Consumer
Residential Mortgage (628 ) (1,369 ) (1,558 ) (3,577 ) (5,286 )
Home Equity (1,061 ) (1,657 ) (2,528 ) (5,159 ) (7,139 )
Automobile (472 ) (438 ) (715 ) (1,436 ) (2,541 )
    Other 1     (2,354 )     (1,394 )     (1,755 )     (5,199 )     (4,807 )
Total Loans and Leases Charged-Off     (5,034 )     (5,936 )     (10,771 )     (18,729 )     (27,152 )
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial 578 524 994 3,035 1,965
Commercial Mortgage 14 10 530 48 530
Construction 3 - - 3 -
Lease Financing 83 11 3,405 166 3,499
Consumer
Residential Mortgage 739 376 740 1,781 1,621
Home Equity 258 165 137 993 1,226
Automobile 433 482 650 1,453 1,951
    Other 1     1,454       577       569       2,636       1,941  
Total Recoveries on Loans and Leases Previously Charged-Off     3,562       2,145       7,025       10,115       12,733  
Net Loans and Leases Charged-Off (1,472 ) (3,791 ) (3,746 ) (8,614 ) (14,419 )
Provision for Credit Losses     -       628       2,180       979       10,471  
Balance at End of Period 2   $ 136,390     $ 137,862     $ 148,829     $ 136,390     $ 148,829  
 
Components
Allowance for Loan and Lease Losses $ 130,971 $ 132,443 $ 143,410 $ 130,971 $ 143,410
Reserve for Unfunded Commitments     5,419       5,419       5,419       5,419       5,419  
Total Reserve for Credit Losses   $ 136,390     $ 137,862     $ 148,829     $ 136,390     $ 148,829  
 
Average Loans and Leases Outstanding   $ 5,716,421     $ 5,641,588     $ 5,340,406     $ 5,640,733     $ 5,326,209  
 

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

0.10 % 0.27 % 0.28 % 0.20 % 0.36 %
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding 2.27 % 2.34 % 2.68 % 2.27 % 2.68 %
 
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 September 30, 2012
Net Interest Income $ 38,530 $ 30,811 $ 3,607 $ 20,684 $ 93,632
Provision for Credit Losses     1,677       (180 )     (24 )     (1,473 )     -  
Net Interest Income After Provision for Credit Losses 36,853 30,991 3,631 22,157 93,632
Noninterest Income 24,918 8,687 15,350 3,419 52,374
Noninterest Expense     (45,454 )     (22,120 )     (14,519 )     (2,785 )     (84,878 )
Income Before Provision for Income Taxes 16,317 17,558 4,462 22,791 61,128
Provision for Income Taxes     (6,038 )     (6,051 )     (1,651 )     (6,156 )     (19,896 )
Net Income     10,279       11,507       2,811       16,635       41,232  
Total Assets as of September 30, 2012   $ 3,242,817     $ 2,397,307     $ 321,273     $ 7,421,028     $ 13,382,425  
 
 
Three Months Ended September 30, 2011 1
Net Interest Income $ 43,334 $ 33,935 $ 3,698 $ 15,799 $ 96,766
Provision for Credit Losses     4,477       (935 )     205       (1,567 )     2,180  
Net Interest Income After Provision for Credit Losses 38,857 34,870 3,493 17,366 94,586
Noninterest Income 24,677 9,426 15,971 789 50,863
Noninterest Expense     (45,026 )     (22,626 )     (14,615 )     (1,688 )     (83,955 )
Income Before Provision for Income Taxes 18,508 21,670 4,849 16,467 61,494
Provision for Income Taxes     (6,848 )     (7,468 )     (1,794 )     (2,078 )     (18,188 )
Net Income     11,660       14,202       3,055       14,389       43,306  
Total Assets as of September 30, 2011   $ 3,050,418     $ 2,249,890     $ 212,914     $ 7,791,536     $ 13,304,758  
 
 
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
Nine Months Ended September 30, 2012
Net Interest Income $ 117,179 $ 93,069 $ 10,738 $ 65,975 $ 286,961
Provision for Credit Losses     9,041       (691 )     265       (7,636 )     979  
Net Interest Income After Provision for Credit Losses 108,138 93,760 10,473 73,611 285,982
Noninterest Income 65,443 28,816 44,482 8,563 147,304
Noninterest Expense     (133,758 )     (67,247 )     (43,524 )     (6,303 )     (250,832 )
Income Before Provision for Income Taxes 39,823 55,329 11,431 75,871 182,454
Provision for Income Taxes     (14,735 )     (15,103 )     (4,229 )     (22,598 )     (56,665 )
Net Income     25,088       40,226       7,202       53,273       125,789  
Total Assets as of September 30, 2012   $ 3,242,817     $ 2,397,307     $ 321,273     $ 7,421,028     $ 13,382,425  
 
 
Nine Months Ended September 30, 2011 1
Net Interest Income $ 131,648 $ 103,624 $ 11,353 $ 47,337 $ 293,962
Provision for Credit Losses     15,105       (726 )     65       (3,973 )     10,471  
Net Interest Income After Provision for Credit Losses 116,543 104,350 11,288 51,310 283,491
Noninterest Income 66,494 28,224 46,256 13,274 154,248
Noninterest Expense     (141,114 )     (71,363 )     (45,062 )     (6,272 )     (263,811 )
Income Before Provision for Income Taxes 41,923 61,211 12,482 58,312 173,928
Provision for Income Taxes     (15,512 )     (21,215 )     (4,618 )     (11,769 )     (53,114 )
Net Income     26,411       39,996       7,864       46,543       120,814  
Total Assets as of September 30, 2011   $ 3,050,418     $ 2,249,890     $ 212,914     $ 7,791,536     $ 13,304,758  
 
 
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
September 30, June 30, March 31, December 31, September 30,
(dollars in thousands, except per share amounts)     2012     2012     2012       2011     2011  
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases $ 64,668 $ 63,910 $ 64,691 $ 64,760 $ 65,344
Income on Investment Securities
Available-for-Sale 15,922 16,988 17,713 19,107 23,097
Held-to-Maturity 23,232 25,054 26,413 23,608 20,344
Deposits 3 1 2 2 6
Funds Sold 105 119 129 120 160
Other     283     281     280       280     279  
Total Interest Income     104,213     106,353     109,228       107,877     109,230  
Interest Expense
Deposits 2,931 3,219 3,473 3,736 4,561
Securities Sold Under Agreements to Repurchase 7,185 7,250 7,304 7,392 7,400
Funds Purchased 7 5 5 5 4
Long-Term Debt     458     498     498       498     499  
Total Interest Expense     10,581     10,972     11,280       11,631     12,464  
Net Interest Income 93,632 95,381 97,948 96,246 96,766
Provision for Credit Losses     -     628     351       2,219     2,180  
Net Interest Income After Provision for Credit Losses     93,632     94,753     97,597       94,027     94,586  
Noninterest Income
Trust and Asset Management 11,050 11,195 10,918 11,025 10,788
Mortgage Banking 11,745 7,581 5,050 3,401 5,480
Service Charges on Deposit Accounts 9,346 9,225 9,591 9,606 9,820
Fees, Exchange, and Other Service Charges 11,907 12,326 12,399 12,401 16,219
Investment Securities Gains (Losses), Net 13 - (90 ) 282 -
Insurance 2,326 2,399 2,278 2,312 2,664
Other     5,987     4,122     7,936       4,380     5,892  
Total Noninterest Income     52,374     46,848     48,082       43,407     50,863  
Noninterest Expense
Salaries and Benefits 47,231 44,037 47,024 44,927 44,307
Net Occupancy 10,524 10,058 10,516 11,253 11,113
Net Equipment 4,523 4,669 5,826 4,748 4,662
Professional Fees 2,494 2,386 2,132 1,926 2,245
FDIC Insurance 1,822 2,088 2,071 2,027 2,065
Other     18,284     17,509     17,638       19,501     19,563  
Total Noninterest Expense     84,878     80,747     85,207       84,382     83,955  
Income Before Provision for Income Taxes 61,128 60,854 60,472 53,052 61,494
Provision for Income Taxes     19,896     20,107     16,662       13,823     18,188  
Net Income   $ 41,232   $ 40,747   $ 43,810     $ 39,229   $ 43,306  
 
Basic Earnings Per Share 0.92 0.90 0.96 0.85 0.93
Diluted Earnings Per Share 0.92 0.90 0.95 0.85 0.92
 
Balance Sheet Totals
Loans and Leases $ 5,782,304 $ 5,671,483 $ 5,598,932 $ 5,538,304 $ 5,348,472
Total Assets 13,382,425 13,915,626 13,759,409 13,846,391 13,304,758
Total Deposits 11,220,547 11,547,993 10,621,170 10,592,623 10,009,013
Total Shareholders' Equity 1,024,562 1,003,825 995,897 1,002,667 1,017,775
 
Performance Ratios
Return on Average Assets 1.22 % 1.19 % 1.29 % 1.17 % 1.31 %
Return on Average Shareholders' Equity 16.02 16.19 17.26 15.23 16.80
Efficiency Ratio 1 58.13 56.77 58.35 60.42 56.87
Net Interest Margin 2 2.98 2.98 3.06 3.04 3.09
 
 
1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and 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 Hawaii Corporation and Subsidiaries
Hawaii Economic Trends     Table 15
  Eight Months Ended   Year Ended
($ in millions; jobs in thousands)   August 31, 2012   December 31, 2011   December 31, 2010
Hawaii Economic Trends 1        
State General Fund Revenues $ 3,513.6 13.1 % $ 4,662.5 8.1 % $ 4,314.1 7.4 %
General Excise and Use Tax Revenue $ 1,915.1 9.5 $ 2,588.5 8.8 $ 2,379.9 3.6
Jobs 596.8 1.2 592.1 0.9 586.8 (0.8 )
                                   
September 30, June 30, December 31,
(spot rates)       2012     2012     2011   2010   2009
Unemployment 1
Statewide, seasonally adjusted 5.7 % 6.4 % 6.2 % 6.3 % 6.9 %
 
Oahu 5.0 6.4 5.4 4.8 5.4
Island of Hawaii 7.9 10.1 8.9 8.6 9.5
Maui 6.0 7.5 7.1 7.4 8.8
Kauai 6.8 8.7 7.8 7.8 8.7
                                   
September 30, June 30, December 31,
(percentage change, except months of inventory)       2012   2012   2011   2010   2009
Housing Trends (Single Family Oahu) 2
Median Home Price 8.8 % 8.7 % (3.0 ) % 3.1 % (7.3 ) %
Home Sales Volume (units) 3.5 % 0.4 % (2.7 ) % 13.4 % (1.8 ) %
Months of Inventory 3.3 3.9 4.8 6.0 6.8
                                   
Monthly Visitor Arrivals, Percentage Change
(in thousands)             Seasonally Adjusted   from Previous Month
Tourism 3
 
July 31, 2012 634.9 (1.9 ) %
June 30, 2012 647.2 (0.8 )
May 31, 2012 652.4 2.7
April 30, 2012 635.0 (4.8 )
March 31, 2012 666.7 4.9
February 29, 2012 635.5 (2.4 )
January 31, 2012 651.1 3.1
December 31, 2011 631.3 2.6
November 30, 2011 615.2 1.7
October 31, 2011 604.8 (1.2 )
September 30, 2011 612.0 3.8
August 31, 2011 589.8 0.9
July 31, 2011 584.3 1.3
June 30, 2011 577.0 (0.1 )
May 31, 2011 577.8 (0.7 )
April 30, 2011 581.9 (0.9 )
March 31, 2011 587.4 (3.0 )
February 28, 2011 605.5 (0.3 )
January 31, 2011 607.5 2.5
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 )
 
 
1 Source: Hawaii Department of Business, Economic Development & Tourism.
2 Source: Honolulu Board of REALTORS.
3 Source: University of Hawaii Economic Research Organization.
Note: Certain prior period seasonally adjusted information has been revised.




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