Skip to main content

Bank of Hawaii Corporation Fourth Quarter 2021 Financial Results

Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per common share of $6.25 for the full year of 2021, compared with diluted earnings per common share of $3.86 for the full year of 2020. Net income for the year was $253.4 million, up 64.7% from the previous year. Return on average assets for the full year of 2021 was 1.14%, compared with 0.79% in 2020. Return on common equity for the full year of 2021 was 17.92%, compared with 11.38% in 2020.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220124005190/en/

“Bank of Hawaii finished 2021 with solid financial performance despite the continued impacts of the COVID-19 pandemic," said Peter Ho, Chairman, President, and CEO. “Core loan balances grew 6.2% in 2021 and deposits surpassed $20 billion, growing 11.8% in 2021. Overall asset quality remained good, and capital and liquidity remain strong as we finished the year. During the year, we continued making significant progress on our strategic initiatives which position us well for continued growth in the future.”

Diluted earnings per common share for the fourth quarter of 2021 was $1.55, compared with diluted earnings per common share of $1.52 in the previous quarter and $1.06 in the same quarter of 2020. Net income for the fourth quarter of 2021 was $63.8 million, up 2.9% from the third quarter of 2021 and up 50.9% from the fourth quarter of 2020.

Financial Highlights

  • The return on average assets for the fourth quarter of 2021 was 1.12% compared with 1.07% in the previous quarter and 0.83% in the same quarter of 2020.
  • The return on average common equity for the fourth quarter of 2021 was 17.40% compared with 17.08% in the previous quarter and 12.26% in the same quarter of 2020.
  • Net interest income for the fourth quarter of 2021 was $126.4 million, a decrease of 0.3% from the third quarter of 2021 and an increase of 5.8% from the fourth quarter of 2020. Net interest margin was 2.34% in the fourth quarter of 2021, an increase of 2 basis points from the previous quarter and a decrease of 14 basis points from the same quarter of 2020.
    • The decrease in the net interest margin from the prior year is largely due to higher levels of liquidity from continued strong deposit growth and lower interest rates, partially offset by higher fees from Paycheck Protection Program (“PPP”) loans, deployment of excess liquidity and core loan growth.
    • One-time significant items in the fourth quarter of 2021 included a negative $0.9 million adjustment to deferred mortgage loan fees related to prior quarters which had a negative impact of 2 basis points on the net interest margin.
    • One-time significant items in the fourth quarter of 2020 included a charge of $3.0 million related to an impairment in the residual value of a leveraged lease which had a negative impact of 6 basis points on the net interest margin.
  • The provision for credit losses for the fourth quarter of 2021 was a net benefit of $9.7 million compared with a net benefit of $10.4 million in the previous quarter and net expense of $15.2 million in the same quarter of 2020.
  • Noninterest income was $42.6 million in the fourth quarter of 2021, an increase of 2.9% from previous quarter and a decrease of 5.9% from the same quarter of 2020.
    • The decrease from the fourth quarter of 2020 was primarily driven by a decrease in customer derivative program and mortgage banking income.
  • Noninterest expense was $101.7 million in the fourth quarter of 2021, an increase of 5.3% from the previous quarter and 3.1% from the same quarter of 2020.
    • One-time significant items in the fourth quarter of 2021 included $1.2 million related to an increase in vacation carryover limits.
    • One-time significant items in the third quarter of 2021 included a gain of $6.3 million related to the sale of property partially offset by $3.8 million of fees related to the early termination of repurchase agreements and $1.2 million in severance.
    • One-time significant items in the fourth quarter of 2020 included $6.1 million in charges related to the decision to permanently close twelve branches and reduce the current number of cash-only ATMs and a charge of $0.8 million related to the true-up of amortization on an investment.
  • The efficiency ratio during the fourth quarter of 2021 was 60.18% compared with 57.38% in the previous quarter and 59.88% during the same quarter of 2020.
  • The effective tax rate for the fourth quarter of 2021 was 17.08% compared with 24.40% in the previous quarter and 16.87% during the same quarter of 2020.
    • The fourth quarter of 2021 includes a $3.6 million benefit due to larger than expected tax credits from 2020 and a reduction in the valuation allowance related to low-income housing partnerships.
    • The fourth quarter of 2020 includes a $1.6 million benefit from return to provision adjustment.

Asset Quality

The Company’s overall asset quality continued to remain good during the fourth quarter of 2021.

  • Total non-performing assets were $19.0 million at December 31, 2021, down by $1.7 million from September 30, 2021 and up $0.5 million from December 31, 2020. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.15% at the end of the quarter, down 2 basis points from the end of the prior quarter and flat compared to the end of the same quarter of 2020.
  • Net loan and lease charge-offs during the fourth quarter of 2021 were $0.7 million or 0.02% annualized of total average loans and leases outstanding.
    • Net loan and lease charge-offs for the fourth quarter of 2021 were comprised of charge-offs of $3.3 million partially offset by recoveries of $2.6 million.
    • Compared to the prior quarter, net loan and lease charge-offs decreased by $0.5 million or 2 basis points annualized on total average loans and leases outstanding.
    • Compared to the fourth quarter of 2020, net loan and lease charge-offs increased by $0.9 million or 3 basis points annualized on total average loans and leases outstanding.
  • The allowance for credit losses on loans and leases was $157.8 million at December 31, 2021, a decrease of $10.1 million from September 30, 2021 and $58.4 million from December 31, 2020. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.29% at the end of the quarter, down 10 basis points from the end of the prior quarter and down 52 basis points from the end of the same quarter of 2020.

Balance Sheet

  • Total assets were $22.8 billion at December 31, 2021, a decrease of 0.8% from September 30, 2021 and an increase of 10.6% from December 31, 2020.
  • The investment securities portfolio was $9.0 billion at December 31, 2021, a decrease of 3.1% from September 30, 2021 and an increase of 27.2% from December 31, 2020.
    • The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.
    • The increase from prior year is primarily due to growth in deposits that outpaced loan growth.
  • Total loans and leases were $12.3 billion at December 31, 2021, an increase of 1.5% from September 30, 2021 and 2.7% from December 31, 2020.
    • Total loans and leases excluding PPP loans were $12.1 billion at December 31, 2021, an increase of 2.8% from September 30, 2021 and an increase of 6.2% from December 31, 2020.
  • Total deposits were $20.4 billion at December 31, 2021, a decrease of 0.7% from September 30, 2021 and an increase of 11.8% from December 31, 2020.

Capital and Dividends

  • The Tier 1 Capital Ratio was 13.56% at December 31, 2021 compared with 13.47% at September 30, 2021 and 12.06% at December 31, 2020.
    • The increase from the same quarter in 2020 was driven by the issuance of $180 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A in the second quarter of 2021.
  • The Tier 1 Leverage Ratio was 7.32% at December 31, 2021 compared with 7.10% at September 30, 2021 and 6.71% at December 31, 2020.
    • The increase from the same quarter in 2020 was driven by the aforementioned issuance of preferred stock in the second quarter of 2021.
  • The Company repurchased 87.5 thousand shares of common stock at a total cost of $7.3 million under its share repurchase program in the fourth quarter of 2021 at an average cost of $83.83 per share repurchased.
    • Total remaining buyback authority under the share repurchase program was $85.7 million at December 31, 2021.
  • The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on March 14, 2022 to shareholders of record at the close of business on February 28, 2022.
  • On January 4, 2022, the Board of Directors declared the quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, on its preferred stock. The depositary shares representing the Series A Preferred Stock are traded on the NYSE under the symbol “BOH.PRA.” The dividend will be payable on February 1, 2022 to shareholders of record of the preferred stock at the close of business on January 18, 2022.

Conference Call Information

The Company will review its 2021 financial results today at 8:00 a.m. Hawaii Time (1:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawaii Corporation's website, www.boh.com.

  • The webcast link is https://edge.media-server.com/mmc/p/wajqjveu.
  • The toll-free number for the teleconference is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code “Bank of Hawaii” to access the call.
  • A replay of the conference call will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, January 24, 2022. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the conference ID 3179105 when prompted. In addition, the replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2020 and its Form 10-Q for the fiscal quarters ended March 31, 2021 and June 30, 2021 and September 30, 2021, which were filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

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

Bank of Hawaii Corporation and Subsidiaries
Financial HighlightsTable 1
Three Months EndedYear Ended

December 31,

September 30,

December 31,

December 31,

(dollars in thousands, except per share amounts)

2021

2021

2020

2021

2020

For the Period:
Operating Results
Net Interest Income

$

126,388

$

126,819

$

119,499

$

497,290

$

496,322

Provision for Credit Losses 1

(9,700

)

(10,400

)

15,200

(50,500

)

117,800

Total Noninterest Income

42,574

41,378

45,258

171,353

184,409

Total Noninterest Expense

101,678

96,519

98,654

393,589

373,807

Net Income

63,837

62,053

42,314

253,372

153,804

Basic Earnings Per Common Share

1.56

1.53

1.06

6.29

3.87

Diluted Earnings Per Common Share

1.55

1.52

1.06

6.25

3.86

Dividends Declared Per Common Share

0.70

0.70

0.67

2.74

2.68

 
Performance Ratios
Return on Average Assets

1.12

%

1.07

%

0.83

%

1.14

%

0.79

%

Return on Average Shareholders' Equity

15.92

15.41

12.26

16.94

11.38

Return on Average Common Equity

17.40

17.08

12.26

17.92

11.38

Efficiency Ratio 2

60.18

57.38

59.88

58.86

54.91

Net Interest Margin 3

2.34

2.32

2.48

2.36

2.73

Dividend Payout Ratio 4

44.87

45.75

63.21

43.56

69.25

Average Shareholders' Equity to Average Assets

7.02

6.95

6.74

6.73

6.97

 
Average Balances
Average Loans and Leases

$

12,086,705

$

11,958,321

$

11,835,929

$

12,023,669

$

11,592,093

Average Assets

22,666,280

22,993,036

20,382,633

22,227,156

19,387,693

Average Deposits

20,222,470

20,473,777

17,819,116

19,771,147

16,900,186

Average Shareholders' Equity

1,590,600

1,598,076

1,372,971

1,495,586

1,351,583

 
Per Share of Common Stock
Book Value 5

$

35.57

$

35.16

$

34.26

$

35.57

$

34.26

Tangible Book Value

34.78

34.38

33.47

34.78

33.47

Market Value
Closing

83.76

82.17

76.62

83.76

76.62

High

88.96

87.12

80.38

99.10

95.53

Low

78.73

75.68

49.25

75.65

46.70

 

December 31,

September 30,

December 31,

2021

2021

2020

As of Period End:
Balance Sheet Totals
Loans and Leases

$

12,259,076

$

12,072,750

$

11,940,020

Total Assets

22,784,941

22,965,383

20,603,651

Total Deposits

20,360,108

20,493,678

18,211,621

Other Debt

10,391

10,414

60,481

Total Shareholders' Equity

1,611,611

1,597,109

1,374,507

 
Asset Quality
Non-Performing Assets

$

18,966

$

20,620

$

18,481

Allowance for Credit Losses - Loans and Leases

157,821

167,920

216,252

Allowance to Loans and Leases Outstanding 6

1.29

%

1.39

%

1.81

%

 
Capital Ratios 7
Common Equity Tier 1 Capital Ratio

12.12

%

12.02

%

12.06

%

Tier 1 Capital Ratio

13.56

13.47

12.06

Total Capital Ratio

14.81

14.72

13.31

Tier 1 Leverage Ratio

7.32

7.10

6.71

Total Shareholders' Equity to Total Assets

7.07

6.95

6.67

Tangible Common Equity to Tangible Assets 8

6.15

6.04

6.53

Tangible Common Equity to Risk-Weighted Assets 8

11.44

11.46

11.89

 
Non-Financial Data
Full-Time Equivalent Employees

2,056

2,049

2,022

Branches

54

54

65

ATMs

307

303

357

 
1 Provision for Credit Losses for 2021 includes Provision for Unfunded Commitments and Accrued Interest Receivable, 2020 represents only Provisions for Loans and Leases.
2 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
3 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
4 Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.
5 Book Value Per Share of Common Stock was revised from $35.30 for the three months ended September 30, 2021.
6 The numerator comprises the Allowance for Credit Losses - Loans and Leases.
7 Regulatory capital ratios as of December 31, 2021 are preliminary.
8 Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. Tangible common equity is defined by the Company
as common shareholders' equity minus goodwill. See Table 2 “Reconciliation of Non-GAAP Financial Measures."
Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial MeasuresTable 2
December 31,September 30,December 31,
(dollars in thousands)

2021

2021

2020

 
Total Shareholders' Equity

$

1,611,611

$

1,597,109

$

1,374,507

Less:Preferred Stock

180,000

180,000

-

Goodwill

31,517

31,517

31,517

Tangible Common Equity

$

1,400,094

$

1,385,592

$

1,342,990

 
Total Assets

22,784,941

22,965,383

20,603,651

Less:Goodwill

31,517

31,517

31,517

Tangible Assets

$

22,753,424

$

22,933,866

$

20,572,134

 
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements 1

$

12,236,805

$

12,093,010

$

11,295,077

 
Total Shareholders' Equity to Total Assets

7.07

%

6.95

%

6.67

%

Tangible Common Equity to Tangible Assets (Non-GAAP)

6.15

%

6.04

%

6.53

%

 
Tier 1 Capital Ratio 1

13.56

%

13.47

%

12.06

%

Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1

11.44

%

11.46

%

11.89

%

 
1 Regulatory capital ratios as of December 31, 2021 are preliminary.
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of IncomeTable 3
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,
(dollars in thousands, except per share amounts)

2021

2021

2020

2021

2020

Interest Income
Interest and Fees on Loans and Leases

$

97,853

$

100,570

$

98,471

$

398,616

$

417,498

Income on Investment Securities
Available-for-Sale

15,850

16,396

15,449

64,550

61,294

Held-to-Maturity

18,325

16,754

14,113

61,955

66,055

Deposits

1

2

1

10

14

Funds Sold

104

382

115

883

902

Other

176

159

167

702

661

Total Interest Income

132,309

134,263

128,316

526,716

546,424

Interest Expense
Deposits

2,898

3,837

4,861

15,216

32,966

Securities Sold Under Agreements to Repurchase

2,834

3,423

3,614

13,260

15,281

Funds Purchased

6

-

5

7

95

Short-Term Borrowings

-

-

-

-

62

Other Debt

183

184

337

943

1,698

Total Interest Expense

5,921

7,444

8,817

29,426

50,102

Net Interest Income

126,388

126,819

119,499

497,290

496,322

Provision for Credit Losses

(9,700

)

(10,400

)

15,200

(50,500

)

117,800

Net Interest Income After Provision for Credit Losses

136,088

137,219

104,299

547,790

378,522

Noninterest Income
Trust and Asset Management

11,693

11,415

11,239

46,068

43,456

Mortgage Banking

2,908

3,136

6,851

14,964

17,871

Service Charges on Deposit Accounts

6,861

6,510

6,335

25,564

24,910

Fees, Exchange, and Other Service Charges

14,439

13,604

12,143

55,457

47,056

Investment Securities Gains (Losses), Net

(1,258

)

(1,259

)

(1,193

)

(1,297

)

9,932

Annuity and Insurance

876

735

670

3,224

3,362

Bank-Owned Life Insurance

1,907

1,897

2,353

7,784

7,388

Other

5,148

5,340

6,860

19,589

30,434

Total Noninterest Income

42,574

41,378

45,258

171,353

184,409

Noninterest Expense
Salaries and Benefits

59,434

56,447

50,200

228,293

207,329

Net Occupancy

9,028

3,079

14,536

26,244

39,533

Net Equipment

9,105

8,924

9,574

35,703

35,448

Data Processing

4,696

4,722

4,604

20,297

18,499

Professional Fees

3,427

2,948

3,174

12,895

12,186

FDIC Insurance

1,619

1,594

1,484

6,536

5,780

Other

14,369

18,805

15,082

63,621

55,032

Total Noninterest Expense

101,678

96,519

98,654

393,589

373,807

Income Before Provision for Income Taxes

76,984

82,078

50,903

325,554

189,124

Provision for Income Taxes

13,147

20,025

8,589

72,182

35,320

Net Income

$

63,837

$

62,053

$

42,314

$

253,372

$

153,804

Preferred Stock Dividends

1,969

1,006

-

2,975

-

Net Income Available to Common Shareholders

$

61,868

$

61,047

$

42,314

$

250,397

$

153,804

Basic Earnings Per Common Share

$

1.56

$

1.53

$

1.06

$

6.29

$

3.87

Diluted Earnings Per Common Share

$

1.55

$

1.52

$

1.06

$

6.25

$

3.86

Dividends Declared Per Common Share

$

0.70

$

0.70

$

0.67

$

2.74

$

2.68

Basic Weighted Average Common Shares

39,741,063

39,881,437

39,773,851

39,837,798

39,726,210

Diluted Weighted Average Common Shares

39,955,525

40,080,919

39,963,736

40,053,664

39,892,107

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive IncomeTable 4
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,
(dollars in thousands)

2021

2021

2020

2021

2020

Net Income

$

63,837

$

62,053

$

42,314

$

253,372

$

153,804

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

(26,244

)

(7,541

)

(961

)

(83,958

)

43,428

Defined Benefit Plans

8,430

441

(5,616

)

9,754

(4,494

)

Other Comprehensive Income (Loss)

(17,814

)

(7,100

)

(6,577

)

(74,204

)

38,934

Comprehensive Income

$

46,023

$

54,953

$

35,737

$

179,168

$

192,738

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of ConditionTable 5
December 31,September 30,December 31,
(dollars in thousands)

2021

2021

2020

Assets
Interest-Bearing Deposits in Other Banks

$

2,571

$

2,188

$

1,646

Funds Sold

361,536

422,063

333,022

Investment Securities
Available-for-Sale

4,276,056

4,353,520

3,791,689

Held-to-Maturity (Fair Value of $4,646,619; $4,895,763; $3,348,693)

4,694,780

4,899,880

3,262,727

Loans Held for Sale

26,746

21,965

82,565

Loans and Leases

12,259,076

12,072,750

11,940,020

Allowance for Credit Losses

(157,821

)

(167,920

)

(216,252

)

Net Loans and Leases

12,101,255

11,904,830

11,723,768

Total Earning Assets

21,462,944

21,604,446

19,195,417

Cash and Due from Banks

196,327

231,711

279,420

Premises and Equipment, Net

199,393

199,144

199,695

Operating Lease Right-of-Use Assets

95,621

97,007

99,542

Accrued Interest Receivable

45,242

46,751

49,303

Foreclosed Real Estate

2,332

2,332

2,332

Mortgage Servicing Rights

22,251

22,099

19,652

Goodwill

31,517

31,517

31,517

Bank-Owned Life Insurance

344,587

293,230

291,480

Other Assets

384,727

437,146

435,293

Total Assets

$

22,784,941

$

22,965,383

$

20,603,651

 
Liabilities
Deposits
Noninterest-Bearing Demand

7,275,287

7,111,693

5,749,612

Interest-Bearing Demand

4,628,567

4,768,725

4,040,733

Savings

7,456,165

7,540,345

6,759,213

Time

1,000,089

1,072,915

1,662,063

Total Deposits

20,360,108

20,493,678

18,211,621

Securities Sold Under Agreements to Repurchase

450,490

450,490

600,590

Other Debt

10,391

10,414

60,481

Operating Lease Liabilities

103,210

104,452

107,412

Retirement Benefits Payable

38,494

49,802

51,197

Accrued Interest Payable

2,499

3,415

5,117

Taxes Payable

11,901

9,815

2,463

Other Liabilities

196,237

246,208

190,263

Total Liabilities

21,173,330

21,368,274

19,229,144

Shareholders' Equity
Preferred Stock ($.01 par value; authorized 180,000 shares;
issued / outstanding: December 31, 2021 and September 30, 2021 - 180,000)

180,000

180,000

-

Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2021 - 58,554,669 / 40,253,193;
September 30, 2021 - 58,559,089 / 40,305,801; and December 31, 2020 - 58,285,624 / 40,119,312)

581

580

580

Capital Surplus

602,508

598,341

591,360

Accumulated Other Comprehensive Income (Loss)

(66,382

)

(48,568

)

7,822

Retained Earnings

1,950,375

1,916,861

1,811,979

Treasury Stock, at Cost (Shares: December 31, 2021 - 18,301,476; September 30, 2021 - 18,253,288;
and December 31, 2020 - 18,166,312)

(1,055,471

)

(1,050,105

)

(1,037,234

)

Total Shareholders' Equity

1,611,611

1,597,109

1,374,507

Total Liabilities and Shareholders' Equity

$

22,784,941

$

22,965,383

$

20,603,651

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' EquityTable 6

Accum.

Other

Compre-

Preferred

Common

hensive

Shares

Preferred

Shares

Common

Capital

Income

Retained

Treasury

(dollars in thousands)

Outstanding

Stock

Outstanding

Stock

Surplus

(Loss)

Earnings

Stock

Total

Balance as of December 31, 2019

-

$

-

40,039,695

$

579

$

582,566

$

(31,112

)

$

1,761,415

$

(1,026,616

)

$

1,286,832

Net Income

-

-

-

-

-

-

153,804

-

153,804

Other Comprehensive Income

-

-

-

-

-

38,934

-

-

38,934

Cumulative Change in Accounting Principle

-

-

-

-

-

-

3,632

-

3,632

Share-Based Compensation

-

-

-

-

7,577

-

-

-

7,577

Common Stock Issued under Purchase

and Equity Compensation Plans

-

-

283,482

1

1,217

-

562

7,388

9,168

Common Stock Repurchased

-

-

(203,865

)

-

-

-

-

(18,006

)

(18,006

)

Cash Dividends Declared Common Stock

($2.68 per share)

-

-

-

-

-

-

(107,434

)

-

(107,434

)

Balance as of December 31, 2020

-

$

-

40,119,312

$

580

$

591,360

$

7,822

$

1,811,979

$

(1,037,234

)

$

1,374,507

 
Net Income

-

-

-

-

-

-

253,372

-

253,372

Other Comprehensive Loss

-

-

-

-

-

(74,204

)

-

-

(74,204

)

Share-Based Compensation

-

-

-

-

13,267

-

-

-

13,267

Preferred Stock Issued, Net

180,000

180,000

-

-

(4,513

)

-

-

-

175,487

Common Stock Issued under Purchase
and Equity Compensation Plans

-

-

507,121

1

2,394

-

(1,368

)

13,021

14,048

Common Stock Repurchased

-

-

(373,240

)

-

-

-

-

(31,258

)

(31,258

)

Cash Dividends Declared Common Stock
($2.74 per share)

-

-

-

-

-

-

(110,633

)

-

(110,633

)

Cash Dividends Declared Preferred Stock

-

-

-

-

-

-

(2,975

)

-

(2,975

)

Balance as of December 31, 2021

180,000

$

180,000

40,253,193

$

581

$

602,508

$

(66,382

)

$

1,950,375

$

(1,055,471

)

$

1,611,611

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1Table 7a
Three Months EndedThree Months EndedThree Months Ended
December 31, 2021September 30, 2021December 31, 2020
AverageIncome/Yield/AverageIncome/Yield/AverageIncome/Yield/
(dollars in millions)BalanceExpenseRateBalanceExpenseRateBalanceExpenseRate
Earning Assets
Interest-Bearing Deposits in Other Banks

$ 2.2

$ -

0.05

%

$ 3.2

$ -

0.23

%

$ 2.2

$ -

0.16

%

Funds Sold

273.2

0.1

0.15

999.5

0.4

0.15

451.6

0.1

0.10

Investment Securities
Available-for-Sale
Taxable

4,308.6

15.8

1.47

4,454.9

16.3

1.46

3,605.8

15.3

1.69

Non-Taxable

5.8

0.1

3.67

10.1

0.1

4.34

20.2

0.2

4.33

Held-to-Maturity
Taxable

4,757.4

18.1

1.52

4,294.6

16.5

1.53

3,246.7

13.9

1.71

Non-Taxable

58.0

0.3

2.31

64.8

0.4

2.37

47.1

0.3

2.66

Total Investment Securities

9,129.8

34.3

1.50

8,824.4

33.3

1.51

6,919.8

29.7

1.71

Loans Held for Sale

20.8

0.1

2.85

24.6

0.2

2.80

15.1

0.1

2.98

Loans and Leases 2
Commercial and Industrial

1,478.0

14.6

3.92

1,644.8

17.0

4.09

1,897.4

14.0

2.95

Commercial Mortgage

3,075.1

22.2

2.86

2,952.7

21.9

2.94

2,768.0

21.7

3.12

Construction

246.8

2.2

3.50

289.9

2.5

3.38

257.4

2.3

3.62

Commercial Lease Financing

107.4

0.3

1.12

109.3

0.4

1.58

112.2

(2.5)

(9.07)

Residential Mortgage

4,293.6

33.9

3.16

4,253.2

34.8

3.27

4,089.7

36.4

3.57

Home Equity

1,757.8

12.8

2.88

1,621.4

12.2

2.97

1,600.9

13.2

3.28

Automobile

730.2

6.1

3.34

718.7

6.2

3.41

706.1

6.4

3.59

Other 3

397.8

5.8

5.79

368.3

5.7

6.16

404.2

7.0

6.85

Total Loans and Leases

12,086.7

97.9

3.22

11,958.3

100.7

3.35

11,835.9

98.5

3.32

Other

34.4

0.2

2.05

31.5

0.2

2.02

33.3

0.2

2.01

Total Earning Assets 4

21,547.1

132.6

2.45

21,841.5

134.8

2.45

19,257.9

128.6

2.66

Cash and Due from Banks

231.3

252.2

240.4

Other Assets

887.9

899.3

884.3

Total Assets

$ 22,666.3

$ 22,993.0

$ 20,382.6

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

4,685.7

0.7

0.06

4,707.1

0.7

0.06

3,899.5

0.6

0.06

Savings

7,443.2

1.2

0.06

7,687.0

1.8

0.09

6,728.8

1.4

0.08

Time

1,019.2

1.0

0.40

1,267.0

1.4

0.44

1,696.0

2.9

0.68

Total Interest-Bearing Deposits

13,148.1

2.9

0.09

13,661.1

3.9

0.11

12,324.3

4.9

0.16

Short-Term Borrowings

18.5

-

0.13

-

-

-

19.2

-

0.10

Securities Sold Under Agreements to Repurchase

450.5

2.8

2.46

547.8

3.4

2.45

600.9

3.6

2.35

Other Debt

10.4

0.2

7.05

10.4

0.2

7.04

60.5

0.3

2.22

Total Interest-Bearing Liabilities

13,627.5

5.9

0.17

14,219.3

7.5

0.21

13,004.9

8.8

0.27

Net Interest Income

$ 126.7

$ 127.3

$ 119.8

Interest Rate Spread

2.28

%

2.24

%

2.39

%

Net Interest Margin

2.34

%

2.32

%

2.48

%

Noninterest-Bearing Demand Deposits

7,074.4

6,812.7

5,494.8

Other Liabilities

373.8

362.9

509.9

Shareholders' Equity

1,590.6

1,598.1

1,373.0

Total Liabilities and Shareholders' Equity

$ 22,666.3

$ 22,993.0

$ 20,382.6

 
 
1 Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2 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.
3 Comprised of other consumer revolving credit, installment, and consumer lease financing.
4 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $280,000, $315,000, and $287,000
for the three months ended December 31, 2021, September 30, 2021, and December 30, 2020, respectively.
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1Table 7b
Year EndedYear Ended
December 31, 2021December 31, 2020
AverageIncome/Yield/AverageIncome/Yield/
(dollars in millions)BalanceExpenseRateBalanceExpenseRate
Earning Assets
Interest-Bearing Deposits in Other Banks

$

2.7

$

-

0.36

%

$

2.2

$

-

0.61

%

Funds Sold

692.4

0.9

0.13

434.1

0.9

0.21

Investment Securities
Available-for-Sale
Taxable

4,266.9

64.2

1.50

2,961.9

60.3

2.04

Non-Taxable

10.1

0.4

4.21

27.6

1.2

4.36

Held-to-Maturity
Taxable

3,988.1

61.0

1.53

3,125.2

65.0

2.08

Non-Taxable

50.7

1.2

2.41

52.6

1.4

2.66

Total Investment Securities

8,315.8

126.8

1.53

6,167.3

127.9

2.07

Loans Held for Sale

24.3

0.7

2.82

19.4

0.6

3.28

Loans and Leases 2
Commercial and Industrial

1,739.0

62.8

3.61

1,797.5

59.3

3.30

Commercial Mortgage

2,940.0

86.7

2.95

2,666.1

90.9

3.41

Construction

271.6

9.5

3.50

240.1

9.4

3.92

Commercial Lease Financing

107.2

1.5

1.42

111.3

(1.0

)

(0.88

)

Residential Mortgage

4,232.4

140.1

3.31

3,978.7

146.0

3.67

Home Equity

1,637.1

49.6

3.03

1,642.7

56.8

3.46

Automobile

717.0

24.6

3.43

709.1

25.3

3.57

Other 3

379.4

23.9

6.30

446.6

30.9

6.91

Total Loans and Leases

12,023.7

398.7

3.32

11,592.1

417.6

3.60

Other

32.9

0.7

2.13

33.7

0.7

1.96

Total Earning Assets 4

21,091.8

527.8

2.50

18,248.8

547.7

3.00

Cash and Due from Banks

252.5

263.8

Other Assets

882.9

875.1

Total Assets

$

22,227.2

$

19,387.7

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

4,509.8

2.7

0.06

3,426.8

2.5

0.07

Savings

7,421.9

6.2

0.08

6,702.7

12.4

0.19

Time

1,331.8

6.3

0.47

1,708.1

18.1

1.06

Total Interest-Bearing Deposits

13,263.5

15.2

0.11

11,837.6

33.0

0.28

Short-Term Borrowings

5.2

-

0.13

33.5

0.2

0.47

Securities Sold Under Agreements to Repurchase

541.9

13.3

2.45

602.7

15.2

2.54

Other Debt

27.7

0.9

3.41

62.1

1.7

2.73

Total Interest-Bearing Liabilities

13,838.3

29.4

0.21

12,535.9

50.1

0.40

Net Interest Income

$

498.4

$

497.6

Interest Rate Spread

2.29

%

2.60

%

Net Interest Margin

2.36

%

2.73

%

Noninterest-Bearing Demand Deposits

6,507.6

5,062.6

Other Liabilities

385.7

437.6

Shareholders' Equity

1,495.6

1,351.6

Total Liabilities and Shareholders' Equity

$

22,227.2

$

19,387.7

 
 
1 Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2 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.
3 Comprised of other consumer revolving credit, installment, and consumer lease financing.
4 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1,116,000 and $1,297,000
for the year ended December 31, 2021 and December 31, 2020, respectively.
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent BasisTable 8a
Three Months Ended December 31, 2021
Compared to September 30, 2021
(dollars in millions)Volume 1Rate 1Total
Change in Interest Income:
Funds Sold

$

(0.3

)

$

-

$

(0.3

)

Investment Securities
Available-for-Sale
Taxable

(0.5

)

-

(0.5

)

Held-to-Maturity
Taxable

1.7

(0.1

)

1.6

Non-Taxable

(0.1

)

-

(0.1

)

Total Investment Securities

1.1

(0.1

)

1.0

Loans Held for Sale

(0.1

)

-

(0.1

)

Loans and Leases
Commercial and Industrial

(5.1

)

2.7

(2.4

)

Commercial Mortgage

0.9

(0.6

)

0.3

Construction

(0.4

)

0.1

(0.3

)

Commercial Lease Financing

-

(0.1

)

(0.1

)

Residential Mortgage

0.3

(1.2

)

(0.9

)

Home Equity

1.0

(0.4

)

0.6

Automobile

0.1

(0.2

)

(0.1

)

Other 2

0.5

(0.4

)

0.1

Total Loans and Leases

(2.7

)

(0.1

)

(2.8

)

Total Change in Interest Income

(2.0

)

(0.2

)

(2.2

)

 
Change in Interest Expense:
Interest-Bearing Deposits
Savings

(0.1

)

(0.5

)

(0.6

)

Time

(0.3

)

(0.1

)

(0.4

)

Total Interest-Bearing Deposits

(0.4

)

(0.6

)

(1.0

)

Securities Sold Under Agreements to Repurchase

(0.6

)

-

(0.6

)

Total Change in Interest Expense

(1.0

)

(0.6

)

(1.6

)

 
Change in Net Interest Income

$

(1.0

)

$

0.4

$

(0.6

)

 
 
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 BasisTable 8b
Three Months Ended December 31, 2021
Compared to December 31, 2020
(dollars in millions)Volume 1Rate 1Total
Change in Interest Income:
Funds Sold

$

(0.1

)

$

0.1

$

-

Investment Securities
Available-for-Sale
Taxable

2.7

(2.2

)

0.5

Non-Taxable

(0.1

)

-

(0.1

)

Held-to-Maturity
Taxable

5.9

(1.7

)

4.2

Non-Taxable

0.1

(0.1

)

-

Total Investment Securities

8.6

(4.0

)

4.6

Loans and Leases
Commercial and Industrial

(4.3

)

4.9

0.6

Commercial Mortgage

2.3

(1.8

)

0.5

Construction

(0.1

)

-

(0.1

)

Commercial Lease Financing

0.1

2.7

2.8

Residential Mortgage

1.8

(4.3

)

(2.5

)

Home Equity

1.2

(1.6

)

(0.4

)

Automobile

0.1

(0.4

)

(0.3

)

Other 2

(0.1

)

(1.1

)

(1.2

)

Total Loans and Leases

1.0

(1.6

)

(0.6

)

Total Change in Interest Income

9.5

(5.5

)

4.0

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

0.1

-

0.1

Savings

0.1

(0.3

)

(0.2

)

Time

(1.0

)

(0.9

)

(1.9

)

Total Interest-Bearing Deposits

(0.8

)

(1.2

)

(2.0

)

Securities Sold Under Agreements to Repurchase

(0.9

)

0.1

(0.8

)

Other Debt

(0.4

)

0.3

(0.1

)

Total Change in Interest Expense

(2.1

)

(0.8

)

(2.9

)

 
Change in Net Interest Income

$

11.6

$

(4.7

)

$

6.9

 
 
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 BasisTable 8c
Year Ended December 31, 2021
Compared to December 31, 2020
(dollars in millions)Volume 1Rate 1Total
Change in Interest Income:
Funds Sold

$ 0.4

$ (0.4)

$ -

Investment Securities
Available-for-Sale
Taxable

22.2

(18.3)

3.9

Non-Taxable

(0.7)

(0.1)

(0.8)

Held-to-Maturity
Taxable

15.5

(19.5)

(4.0)

Non-Taxable

(0.1)

(0.1)

(0.2)

Total Investment Securities

36.9

(38.0)

(1.1)

Loans Held for Sale

0.2

(0.1)

0.1

Loans and Leases
Commercial and Industrial

1.6

1.9

3.5

Commercial Mortgage

8.8

(13.0)

(4.2)

Construction

1.2

(1.1)

0.1

Commercial Lease Financing

-

2.5

2.5

Residential Mortgage

8.9

(14.8)

(5.9)

Home Equity

(0.2)

(7.0)

(7.2)

Automobile

0.3

(1.0)

(0.7)

Other 2

(4.4)

(2.6)

(7.0)

Total Loans and Leases

16.2

(35.1)

(18.9)

Total Change in Interest Income

53.7

(73.6)

(19.9)

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

0.7

(0.5)

0.2

Savings

1.2

(7.4)

(6.2)

Time

(3.4)

(8.4)

(11.8)

Total Interest-Bearing Deposits

(1.5)

(16.3)

(17.8)

Short-Term Borrowings

(0.1)

(0.1)

(0.2)

Securities Sold Under Agreements to Repurchase

(1.5)

(0.4)

(1.9)

Other Debt

(1.1)

0.3

(0.8)

Total Change in Interest Expense

(4.2)

(16.5)

(20.7)

 
Change in Net Interest Income

$ 57.9

$ (57.1)

$ 0.8

 
 
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
Salaries and BenefitsTable 9
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,
(dollars in thousands)

2021

2021

2020

2021

2020

Salaries

$

35,758

$

34,676

$

33,907

$

135,416

$

134,178

Incentive Compensation

6,699

4,677

3,084

22,462

9,153

Share-Based Compensation

3,396

3,335

2,029

12,489

6,783

Commission Expense

2,094

1,772

2,164

8,901

6,985

Retirement and Other Benefits

4,661

4,746

5,212

20,213

18,528

Payroll Taxes

2,585

2,825

2,292

12,404

12,241

Medical, Dental, and Life Insurance

3,981

3,222

1,523

12,831

12,917

Separation Expense

260

1,194

(11

)

3,577

6,544

Total Salaries and Benefits

$

59,434

$

56,447

$

50,200

$

228,293

$

207,329

Bank of Hawaii Corporation and Subsidiaries
Loans and LeasesTable 10
December 31,September 30,June 30,March 31,December 31,
(dollars in thousands)

2021

2021

2021

2021

2020

Commercial
Commercial and Industrial

$

1,361,921

$

1,325,446

$

1,257,305

$

1,288,496

$

1,357,610

PPP 1

126,779

268,480

513,513

725,485

517,683

Commercial Mortgage

3,152,130

2,994,520

2,944,435

2,859,246

2,854,829

Construction

220,254

296,052

277,393

281,164

259,798

Lease Financing

105,108

107,526

110,500

104,980

110,766

Total Commercial

4,966,192

4,992,024

5,103,146

5,259,371

5,100,686

Consumer
Residential Mortgage

4,309,602

4,272,540

4,264,180

4,216,976

4,130,513

Home Equity

1,836,588

1,680,229

1,594,781

1,577,500

1,604,538

Automobile

736,565

727,234

714,729

710,407

708,800

Other 2

410,129

400,723

364,542

376,449

395,483

Total Consumer

7,292,884

7,080,726

6,938,232

6,881,332

6,839,334

Total Loans and Leases

$

12,259,076

$

12,072,750

$

12,041,378

$

12,140,703

$

11,940,020

 
 
Deposits
December 31,September 30,June 30,March 31,December 31,
(dollars in thousands)

2021

2021

2021

2021

2020

Consumer

$

10,438,844

$

10,150,199

$

9,848,285

$

9,746,713

$

9,347,725

Commercial

8,641,932

8,767,733

8,675,909

8,241,102

7,302,832

Public and Other

1,279,332

1,575,746

1,645,515

1,568,836

1,561,064

Total Deposits

$

20,360,108

$

20,493,678

$

20,169,709

$

19,556,651

$

18,211,621

 
1 The PPP amounts presented, which are reported net of deferred costs and fees, were previously included as a component of the Commercial and Industrial loan class.
2 Comprised of other revolving credit, installment, and lease financing.
Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or MoreTable 11
December 31,September 30,June 30,March 31,December 31,
(dollars in thousands)

2021

2021

2021

2021

2020

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

$

243

$

209

$

258

$

293

$

441

Commercial Mortgage

8,205

8,309

8,413

8,503

8,527

Total Commercial

8,448

8,518

8,671

8,796

8,968

Consumer
Residential Mortgage

3,305

4,348

2,437

1,804

3,223

Home Equity

4,881

5,422

5,534

4,951

3,958

Total Consumer

8,186

9,770

7,971

6,755

7,181

Total Non-Accrual Loans and Leases

16,634

18,288

16,642

15,551

16,149

Foreclosed Real Estate

2,332

2,332

2,332

2,332

2,332

Total Non-Performing Assets

$

18,966

$

20,620

$

18,974

$

17,883

$

18,481

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

-

-

-

9

-

Total Commercial

-

-

-

9

-

Consumer
Residential Mortgage

3,159

4,776

4,069

4,069

5,274

Home Equity

3,456

2,946

4,498

4,906

3,187

Automobile

729

395

277

604

925

Other 1

426

593

434

828

1,160

Total Consumer

7,770

8,710

9,278

10,407

10,546

Total Accruing Loans and Leases Past Due 90 Days or More

$

7,770

$

8,710

$

9,278

$

10,416

$

10,546

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

$

60,519

$

62,787

$

74,926

$

74,216

$

68,065

Total Loans and Leases

$

12,259,076

$

12,072,750

$

12,041,378

$

12,140,703

$

11,940,020

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

0.14

%

0.15

%

0.14

%

0.13

%

0.14

%

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

0.15

%

0.17

%

0.16

%

0.15

%

0.15

%

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

0.17

%

0.17

%

0.17

%

0.17

%

0.18

%

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

0.14

%

0.17

%

0.15

%

0.13

%

0.14

%

 
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

0.22

%

0.24

%

0.23

%

0.23

%

0.24

%

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

$

20,620

$

18,974

$

17,883

$

18,481

$

18,626

Additions

357

3,171

2,229

2,992

434

Reductions
Payments

(972

)

(889

)

(722

)

(2,481

)

(490

)

Return to Accrual Status

(1,038

)

(606

)

(416

)

(1,014

)

-

Charge-offs/Write-downs

(1

)

(30

)

-

(95

)

(89

)

Total Reductions

(2,011

)

(1,525

)

(1,138

)

(3,590

)

(579

)

Balance at End of Quarter

$

18,966

$

20,620

$

18,974

$

17,883

$

18,481

 
1 Comprised of other revolving credit, installment, and lease financing.
Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit LossesTable 12
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,
(dollars in thousands)

2021

2021

2020

2021

2020

Balance at Beginning of Period

$

174,708

$

186,371

$

205,813

$

221,303

$

116,849

 
CECL Adoption (Day 1) Impact

-

-

-

-

(5,072

)

 
Loans and Leases Charged-Off
Commercial
Commercial and Industrial

(217

)

(196

)

(177

)

(1,117

)

(1,697

)

Consumer
Residential Mortgage

-

(197

)

(120

)

(316

)

(204

)

Home Equity

(5

)

(289

)

(81

)

(417

)

(397

)

Automobile

(1,045

)

(576

)

(393

)

(4,939

)

(6,496

)

Other 1

(2,007

)

(2,187

)

(2,460

)

(10,530

)

(12,244

)

Total Loans and Leases Charged-Off

(3,274

)

(3,445

)

(3,231

)

(17,319

)

(21,038

)

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

132

118

244

506

2,288

Commercial Mortgage

-

-

-

-

40

Consumer
Residential Mortgage

858

173

497

2,467

1,292

Home Equity

390

216

868

1,666

2,892

Automobile

476

943

910

3,510

3,775

Other 1

746

802

968

3,205

3,613

Total Recoveries on Loans and Leases Previously Charged-Off

2,602

2,252

3,487

11,354

13,900

Net Recovered (Charged-Off) - Loans and Leases

(672

)

(1,193

)

256

(5,965

)

(7,138

)

Net Charged-Off - Accrued Interest Receivable

(39

)

(70

)

-

(541

)

-

Provision for Credit Losses:
Loans and Leases

(9,427

)

(11,272

)

15,200

(52,466

)

117,800

Accrued Interest Receivable

(214

)

(703

)

-

(1,745

)

-

Unfunded Commitments

(59

)

1,575

34

3,711

(1,136

)

Balance at End of Period 2

$

164,297

$

174,708

$

221,303

$

164,297

$

221,303

 
Components
Allowance for Credit Losses - Loans and Leases

157,821

167,920

216,252

157,821

216,252

Allowance for Credit Losses - Accrued Interest Receivable

414

667

2,700

414

2,700

Reserve for Unfunded Commitments

6,062

6,121

2,351

6,062

2,351

Total Reserve for Credit Losses

$

164,297

$

174,708

$

221,303

$

164,297

$

221,303

 
Average Loans and Leases Outstanding

$

12,086,705

$

11,958,321

$

11,835,929

$

12,023,669

$

11,592,093

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

0.02

%

0.04

%

(0.01

%)

0.05

%

0.06

%

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

1.29

%

1.39

%

1.81

%

1.29

%

1.81

%

 
1 Comprised of other revolving credit, installment, and lease financing.
2 Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.
3 The numerator comprises the Allowance for Credit Losses – Loans and Leases.
Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial InformationTable 13a

Consumer

Commercial

Treasury

Consolidated

(dollars in thousands)

Banking

Banking

and Other

Total

Three Months Ended December 31, 2021
Net Interest Income

$

71,007

$

48,140

$

7,241

$

126,388

Provision for Credit Losses

676

(4

)

(10,372

)

(9,700

)

Net Interest Income After Provision for Credit Losses

70,331

48,144

17,613

136,088

Noninterest Income

32,948

8,298

1,328

42,574

Noninterest Expense

(81,273

)

(17,127

)

(3,278

)

(101,678

)

Income Before Income Taxes

22,006

39,315

15,663

76,984

Provision for Income Taxes

(5,602

)

(9,436

)

1,891

(13,147

)

Net Income

$

16,404

$

29,879

$

17,554

$

63,837

Total Assets as of December 31, 2021

$

7,675,823

$

5,107,001

$

10,002,117

$

22,784,941

 
Three Months Ended December 31, 2020
Net Interest Income

$

71,707

$

44,373

$

3,419

$

119,499

Provision for Credit Losses

(128

)

(129

)

15,457

15,200

Net Interest Income (Loss) After Provision for Credit Losses

71,835

44,502

(12,038

)

104,299

Noninterest Income

35,091

8,040

2,127

45,258

Noninterest Expense

(78,433

)

(15,742

)

(4,479

)

(98,654

)

Income (Loss) Before Income Taxes

28,493

36,800

(14,390

)

50,903

Provision for Income Taxes

(7,242

)

(9,804

)

8,457

(8,589

)

Net Income (Loss)

$

21,251

$

26,996

$

(5,933

)

$

42,314

Total Assets as of December 31, 2020

$

7,478,813

$

5,116,807

$

8,008,031

$

20,603,651

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial InformationTable 13b

Consumer

Commercial

Treasury

Consolidated

(dollars in thousands)

Banking

Banking

and Other

Total

Year Ended December 31, 2021
Net Interest Income

$

283,998

$

194,409

$

18,883

$

497,290

Provision for Credit Losses

5,764

201

(56,465

)

(50,500

)

Net Interest Income After Provision for Credit Losses

278,234

194,208

75,348

547,790

Noninterest Income

131,292

30,637

9,424

171,353

Noninterest Expense

(303,699

)

(64,470

)

(25,420

)

(393,589

)

Income Before Income Taxes

105,827

160,375

59,352

325,554

Provision for Income Taxes

(26,442

)

(39,070

)

(6,670

)

(72,182

)

Net Income

$

79,385

$

121,305

$

52,682

$

253,372

Total Assets as of December 31, 2021

$

7,675,823

$

5,107,001

$

10,002,117

$

22,784,941

 
Year Ended December 31, 2020
Net Interest Income

$

292,710

$

188,626

$

14,986

$

496,322

Provision for Credit Losses

8,087

(948

)

110,661

117,800

Net Interest Income (Loss) After Provision for Credit Losses

284,623

189,574

(95,675

)

378,522

Noninterest Income

128,400

34,523

21,486

184,409

Noninterest Expense

(289,177

)

(63,294

)

(21,336

)

(373,807

)

Income (Loss) Before Income Taxes

123,846

160,803

(95,525

)

189,124

Provision for Income Taxes

(31,476

)

(40,081

)

36,237

(35,320

)

Net Income (Loss)

$

92,370

$

120,722

$

(59,288

)

$

153,804

Total Assets as of December 31, 2020

$

7,478,813

$

5,116,807

$

8,008,031

$

20,603,651

Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial DataTable 14
Three Months Ended
December 31,September 30,June 30,March 31,December 31,
(dollars in thousands, except per share amounts)

2021

2021

2021

2021

2020

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

$

97,853

$

100,570

$

100,894

$

99,299

$

98,471

Income on Investment Securities
Available-for-Sale

15,850

16,396

16,467

15,837

15,449

Held-to-Maturity

18,325

16,754

13,576

13,300

14,113

Deposits

1

2

-

7

1

Funds Sold

104

382

260

137

115

Other

176

159

182

185

167

Total Interest Income

132,309

134,263

131,379

128,765

128,316

Interest Expense
Deposits

2,898

3,837

4,152

4,329

4,861

Securities Sold Under Agreements to Repurchase

2,834

3,423

3,470

3,533

3,614

Funds Purchased

6

-

-

1

5

Other Debt

183

184

243

333

337

Total Interest Expense

5,921

7,444

7,865

8,196

8,817

Net Interest Income

126,388

126,819

123,514

120,569

119,499

Provision for Credit Losses

(9,700

)

(10,400

)

(16,100

)

(14,300

)

15,200

Net Interest Income After Provision for Credit Losses

136,088

137,219

139,614

134,869

104,299

Noninterest Income
Trust and Asset Management

11,693

11,415

11,682

11,278

11,239

Mortgage Banking

2,908

3,136

3,058

5,862

6,851

Service Charges on Deposit Accounts

6,861

6,510

6,065

6,128

6,335

Fees, Exchange, and Other Service Charges

14,439

13,604

13,807

13,607

12,143

Investment Securities Gains (Losses), Net

(1,258

)

(1,259

)

2,423

(1,203

)

(1,193

)

Annuity and Insurance

876

735

911

702

670

Bank-Owned Life Insurance

1,907

1,897

2,063

1,917

2,353

Other

5,148

5,340

4,422

4,679

6,860

Total Noninterest Income

42,574

41,378

44,431

42,970

45,258

Noninterest Expense
Salaries and Benefits

59,434

56,447

56,161

56,251

50,200

Net Occupancy

9,028

3,079

5,047

9,090

14,536

Net Equipment

9,105

8,924

8,796

8,878

9,574

Data Processing

4,696

4,722

4,557

6,322

4,604

Professional Fees

3,427

2,948

3,114

3,406

3,174

FDIC Insurance

1,619

1,594

1,669

1,654

1,484

Other

14,369

18,805

17,183

13,264

15,082

Total Noninterest Expense

101,678

96,519

96,527

98,865

98,654

Income Before Provision for Income Taxes

76,984

82,078

87,518

78,974

50,903

Provision for Income Taxes

13,147

20,025

19,985

19,025

8,589

Net Income

$

63,837

$

62,053

$

67,533

$

59,949

$

42,314

Preferred Stock Dividends

1,969

1,006

-

-

-

Net Income Available to Common Shareholders

$

61,868

$

61,047

$

67,533

$

59,949

$

42,314

 
Basic Earnings Per Common Share

$

1.56

$

1.53

$

1.69

$

1.51

$

1.06

Diluted Earnings Per Common Share

$

1.55

$

1.52

$

1.68

$

1.50

$

1.06

 
Balance Sheet Totals
Loans and Leases

$

12,259,076

$

12,072,750

$

12,041,378

$

12,140,703

$

11,940,020

Total Assets

22,784,941

22,965,383

22,672,183

21,947,271

20,603,651

Total Deposits

20,360,108

20,493,678

20,169,709

19,556,651

18,211,621

Total Shareholders' Equity

1,611,611

1,597,109

1,583,531

1,360,221

1,374,507

 
Performance Ratios
Return on Average Assets

1.12

%

1.07

%

1.23

%

1.15

%

0.83

Return on Average Shareholders' Equity

15.92

15.41

19.17

17.65

12.26

Return on Average Common Equity

17.40

17.08

19.61

17.65

12.26

Efficiency Ratio 1

60.18

57.38

57.47

60.45

59.88

Net Interest Margin 2

2.34

2.32

2.37

2.43

2.48

 
 
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 TrendsTable 15
Eleven Months EndedYear Ended
($ in millions; jobs in thousands)November 30, 2021December 31, 2020December 31, 2019
Hawaii Economic Trends
State General Fund Revenues 1

$

7,441.8

26.8

%

$

6,415.1

(12.3

)

%

$

7,316.5

5.5

%

General Excise and Use Tax Revenue 1

3,293.9

17.8

3,038.8

(15.6

)

3,602.2

5.1

Jobs 2

608.0

588.2

659.7

 
November 30,December 31,

2021

2020

2019

Unemployment, seasonally adjusted 3
Statewide

6.0

%

10.3

%

2.1

%

 
Honolulu County

4.9

9.3

2.0

Hawaii County

5.1

10.1

2.5

Maui County

6.8

14.3

2.0

Kauai County

7.0

13.9

2.1

 
December 31,
(percentage change, except months of inventory)

2021

2020

2019

2018

Housing Trends (Single Family Home - Oahu) 4
Median Home Price

19.3

%

5.2

%

(0.1

)

%

4.6

%

Home Sales Volume (units)

17.9

%

2.3

%

3.9

%

(7.7

)

%

Months of Inventory

0.8

1.4

2.5

2.8

 
Monthly Visitor Arrivals,Percentage Change
(in thousands)Not Seasonally Adjustedfrom Previous Year
Tourism 5
November 30, 2021

613.4

233.8

%

October 31, 2021

550.8

618.2

September 30, 2021

505.9

2,647.9

August 31, 2021

722.4

2,993.0

July 31, 2021

879.6

3,798.4

June 30, 2021

791.1

4,534.7

May 31, 2021

629.7

6,807.4

April 30, 2021

484.1

10,506.3

March 31, 2021

439.8

1.1

February 28, 2021

235.3

(71.6

)

January 31, 2021

172.0

(80.1

)

December 31, 2020

235.8

(75.2

)

November 30, 2020

183.8

(77.3

)

October 31, 2020

76.7

(90.4

)

September 30, 2020

18.4

(97.5

)

August 31, 2020

23.4

(97.5

)

July 31, 2020

22.6

(97.7

)

June 30, 2020

17.1

(98.2

)

May 31, 2020

9.1

(98.9

)

April 30, 2020

4.6

(99.5

)

March 31, 2020

434.9

(53.7

)

February 29, 2020

828.1

5.8

January 31, 2020

862.6

5.1

 
 
1 Source: Hawaii Department of Business, Economic Development & Tourism
2 Source: U.S. Bureau of Labor Statistics
3 Source: University of Hawaii Economic Research Organization (UHERO)
4 Source: Honolulu Board of Realtors
5 Source: Hawaii Tourism Authority

Contacts:

Media Inquiries
Melissa Torres-Laing
Email: Melissa.Torres-Laing@boh.com
Telephone: 808-694-8384
Mobile: 808-859-1703

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.