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Bank of Hawaii Corporation Third Quarter 2020 Financial Results

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  • Diluted Earnings Per Share $0.95
  • Net Income $37.8 Million
  • Board of Directors Approves Dividend of $0.67 Per Share

Bank of Hawaii Corporation (NYSE:BOH) today reported diluted earnings per share of $0.95 for the third quarter of 2020 compared with diluted earnings per share of $0.98 in the previous quarter and diluted earnings per share of $1.29 in the same quarter last year. Net income for the third quarter of 2020 was $37.8 million compared with net income of $38.9 million in the second quarter of 2020 and net income of $52.1 million in the third quarter of 2019.

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Loan and lease balances were $11.8 billion at September 30, 2020 down slightly from June 30, 2020, up 7.3 percent from December 31, 2019, and up 8.4 percent compared with September 30, 2019. Total deposits reached another record high of $17.7 billion at the end of the third quarter of 2020, an increase of 1.8 percent from June 30, 2020, up 12.4 percent from December 31, 2019, and up 15.6 percent compared with September 30, 2019.

"Our financial results for the third quarter largely reflect current conditions at the local, national and global level," said Peter Ho, Chairman, President and CEO. "Our long-standing commitment to conservatism, liquidity and capital strength positions us relatively well to these extraordinary times."

The return on average assets for the third quarter of 2020 was 0.76 percent, down from 0.82 percent in the previous quarter and 1.17 percent in the same quarter last year. The return on average equity for the third quarter of 2020 was 11.01 percent compared with 11.58 percent for the second quarter of 2020 and 16.02 percent for the third quarter of 2019. The efficiency ratio for the third quarter of 2020 was 54.22 percent compared with 49.95 percent in the previous quarter and 58.55 percent in the same quarter last year.

For the nine-month period ended September 30, 2020, net income was $111.5 million, down from net income of $167.8 million during the same period last year. Diluted earnings per share were $2.80 for the nine-month period in 2020 compared with diluted earnings per share of $4.11 for the same period in 2019. The return on average assets for the nine-month period ended September 30, 2020 was 0.78 percent compared with the return on average assets of 1.29 percent for the same nine months in 2019. The 2020 year-to-date return on average equity was 11.08 percent compared with 17.58 percent for the nine months ended September 30, 2019. The efficiency ratio for the nine-month period in 2020 was 53.33 percent compared with 56.16 percent in the same period last year.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the third quarter of 2020 was $124.5 million, a decrease of $2.5 million compared with $127.0 million in the second quarter of 2020 and a decrease of $0.7 million compared with $125.2 million in the third quarter of 2019. Net interest income in the second quarter of 2020 included an interest recovery of $2.9 million that increased the margin by 7 basis points. Net interest income, on a taxable equivalent basis, for the nine-month period in 2020 was $377.8 million, an increase of $2.1 million compared with net interest income of $375.7 million for the same period in 2019. Analyses of the changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin was 2.67 percent for the third quarter of 2020, down 16 basis points from 2.83 percent in the previous quarter and down 34 basis points from the net interest margin of 3.01 percent in the third quarter of 2019. The decrease is largely due to lower rates and higher levels of liquidity due to the strong deposit growth. The net interest margin for the nine-month period in 2020 was 2.82 percent compared with the net interest margin of 3.05 percent for the same nine-month period last year.

Results for the third quarter of 2020 included a provision for credit losses of $28.6 million compared with $40.4 million in the previous quarter and $4.3 million in the same quarter last year. The provision for credit losses for the nine-month period in 2020 was $102.6 million compared with a provision for credit losses of $11.3 million during the same period in 2019.

Noninterest income was $41.7 million in the third quarter of 2020, a decrease of $9.6 million compared with $51.3 million in the second quarter of 2020 and a decrease of $4.8 million compared with $46.5 million in the third quarter of 2019. There were no significant items in noninterest income during the third quarter of 2020 or the third quarter of 2019. Noninterest income during the second quarter of 2020 included a gain of $14.2 million related to a sale of Visa Class B shares. Adjusted for the sale of the Visa shares, the increase in noninterest income compared to the prior quarter was primarily due to higher fee income. The decline in noninterest revenue compared to the third quarter last year is due to lower fee income resulting from decreased customer and visitor activity related to the COVID-19 pandemic. Noninterest income for the nine-month period in 2020 was $139.2 million, an increase of $3.6 million compared with noninterest income of $135.6 million for the same period in 2019.

Noninterest expense was $89.9 million in the third quarter of 2020, an increase of $1.0 million compared with $88.9 million in the second quarter of 2020 and a decrease of $10.4 million compared with $100.3 million in the third quarter last year. Noninterest expense during the third quarter of 2020 included a gain of $1.9 million related to the sale of a branch building partially offset by $1.8 million in severance. There were no significant items in noninterest expense during the second quarter of 2020. Noninterest expense in the third quarter of 2019 included a $6.0 million increase in legal reserves. Noninterest expense for the nine-month period in 2020 was $275.2 million, a decrease of $10.9 million compared with noninterest expense of $286.1 million for the same period in 2019. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the third quarter of 2020 was 20.09 percent compared with 20.05 percent in the previous quarter and 22.08 percent in the same quarter last year. The effective tax rate for the nine-month period in 2020 was 19.34 percent compared with an effective tax rate of 20.89 percent during the same period last year.

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

Asset Quality

The Company's asset quality remained relatively stable during the third quarter of 2020. Total non-performing assets were $18.6 million at September 30, 2020 down from $22.7 million at June 30, 2020 and $21.6 million at September 30, 2019. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.16 percent, down from 0.19 percent at the end of the previous quarter and 0.20 percent at the end of the third quarter last year.

Accruing loans and leases past due 90 days or more were $9.6 million at September 30, 2020 compared with $8.9 million at June 30, 2020 and $6.1 million at September 30, 2019. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $58.7 million at September 30, 2020, compared with $59.7 million at June 30, 2020 and $46.2 million at September 30, 2019. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loan and lease charge-offs during the third quarter of 2020 were a net recovery of $1.5 million. Loan and lease charge-offs of $2.3 million during the quarter were fully offset by recoveries of $3.8 million. Net charge-offs during the second quarter of 2020 were $5.1 million or 0.18 percent annualized of total average loans and leases outstanding and comprised of $8.3 million in charge-offs and recoveries of $3.2 million. Net charge-offs during the third quarter of 2019 were $3.0 million or 0.11 percent annualized of total average loans and leases outstanding and comprised of $5.8 million in charge-offs and recoveries of $2.8 million. Net charge-offs during the nine-month period in 2020 were $7.4 million or 0.09 percent annualized of total average loans and leases outstanding compared with net charge-offs of $9.0 million or 0.11 percent annualized of total average loans and leases outstanding for the nine-month period in 2019.

The allowance for credit losses was $203.5 million at September 30, 2020 compared with $173.4 million at June 30, 2020 and $108.9 million at September 30, 2019. The ratio of the allowance for credit losses to total loans and leases was 1.73 percent at September 30, 2020 compared with 1.47 percent at June 30, 2020 and 1.00 percent at September 30, 2019. The reserve for unfunded commitments was $2.3 million at September 30, 2020 compared with $2.5 million at June 30, 2020 and $6.8 million at September 30, 2019. Details of loan and lease charge-offs, recoveries and components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets increased to $20.1 billion at September 30, 2020 compared with $19.8 billion at June 30, 2020 and $17.7 billion at September 30, 2019. Average total assets were $19.7 billion during the third quarter of 2020 compared with $19.2 billion during the previous quarter and $17.6 billion during the third quarter last year.

The investment securities portfolio was $6.4 billion at September 30, 2020, up from $6.0 billion at June 30, 2020 and $5.5 billion at September 30, 2019 due to strong growth in deposits that outpaced loan growth. The portfolio remains largely comprised of securities issued by U.S. government agencies and includes $3.2 billion in securities held to maturity and $3.2 billion in securities available for sale. The securities portfolio at June 30, 2020 included $3.3 billion in securities held to maturity and $2.7 billion in securities available for sale compared with $2.9 billion in securities held to maturity and $2.6 billion in securities available for sale at September 30, 2019.

Total loans and leases were $11.8 billion at September 30, 2020. Average total loans and leases were $11.7 billion during the third quarter of 2020 up slightly from the previous quarter and up 9.0 percent from $10.8 billion during the same quarter last year. The commercial loan portfolio was $5.0 billion at September 30, 2020, down $5.9 million or 0.1 percent from June 30, 2020, and up $860.1 million or 20.7 percent from September 30, 2019. The consumer loan portfolio was $6.8 billion at September 30, 2020, down $5.9 million or 0.1 percent from June 30, 2020, and up $52.2 million or 0.8 percent from September 30, 2019.

Total deposits were $17.7 billion at September 30, 2020. Average total deposits were $17.3 billion during the third quarter of 2020, up 3.5 percent from $16.7 billion during the previous quarter and up 12.7 percent from $15.3 billion during the same quarter last year. Consumer deposits increased to $8.9 billion at September 30, 2020, up $136.9 million or 1.6 percent from $8.8 billion at June 30, 2020 and up $1.0 billion or 12.8 percent from $7.9 billion at September 30, 2019. Commercial deposits were $7.2 billion at September 30, 2020, down $135.5 million or 1.9 percent from $7.3 billion at June 30, 2020 and were up $1.0 billion or 16.3 percent from $6.2 billion at September 30, 2019. Other deposits, including public funds, were $1.7 billion at September 30, 2020, an increase of $314.3 million or 23.1 percent from June 30, 2020 and up $381.7 million or 29.5 percent from September 30, 2019. Deposit balances are summarized in Tables 7a, 7b, and 10.

Total shareholders' equity increased to $1.36 billion at September 30, 2020 compared with $1.35 billion at June 30, 2020 and $1.29 billion at September 30, 2019. There were no shares repurchased during the third quarter of 2020. The Tier 1 Capital Ratio at September 30, 2020 was 12.09 percent compared with 12.04 percent at June 30, 2020 and 12.33 percent at September 30, 2019. The Tier 1 leverage ratio at September 30, 2020 was 6.81 percent compared with 6.90 percent at June 30, 2020 and 7.32 percent at September 30, 2019.

The Company's Board of Directors declared a quarterly cash dividend of $0.67 per share on the Company's outstanding shares. The dividend will be payable on December 14, 2020 to shareholders of record at the close of business on November 30, 2020.

Conference Call Information

The Company will review its third quarter 2020 financial results today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time). The live call, including a slide presentation, will be accessible on the investor relations link of Company's website, www.boh.com. The webcast link is https://edge.media-server.com/mmc/p/xr9ecjhk. 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 will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, October 26, 2020. 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 6164797 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", 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, 2019, 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 and the West Pacific. The Company's principal subsidiary, Bank of Hawaii, was founded in 1897. For more information about Bank of Hawaii Corporation, see the Company's web site, www.boh.com.

Bank of Hawaii Corporation and Subsidiaries
Financial Highlights Table 1

Three Months Ended

 

Nine Months Ended

September 30,

 

June 30,

 

September 30,

 

September 30,

(dollars in thousands, except per share amounts)

2020

 

2020

 

2019

 

2020

 

2019

For the Period:
Operating Results
Net Interest Income

$

124,166

$

126,691

$

124,896

$

376,823

$

373,830

Provision for Credit Losses

 

28,600

 

40,400

 

4,250

 

102,600

 

11,250

Total Noninterest Income

 

41,734

 

51,268

 

46,507

 

139,151

 

135,636

Total Noninterest Expense

 

89,949

 

88,892

 

100,349

 

275,153

 

286,131

Net Income

 

37,840

 

38,908

 

52,052

 

111,490

 

167,770

Basic Earnings Per Share

 

0.95

 

0.98

 

1.30

 

2.81

 

4.14

Diluted Earnings Per Share

 

0.95

 

0.98

 

1.29

 

2.80

 

4.11

Dividends Declared Per Share

 

0.67

 

0.67

 

0.65

 

2.01

 

1.92

 
Performance Ratios
Return on Average Assets

 

0.76

%

 

0.82

%

 

1.17

%

 

0.78

%

 

1.29

%

Return on Average Shareholders' Equity

 

11.01

 

11.58

 

16.02

 

11.08

 

17.58

Efficiency Ratio 1

 

54.22

 

49.95

 

58.55

 

53.33

 

56.16

Net Interest Margin 2

 

2.67

 

2.83

 

3.01

 

2.82

 

3.05

Dividend Payout Ratio 3

 

70.53

 

68.37

 

50.00

 

71.53

 

46.38

Average Shareholders' Equity to Average Assets

 

6.93

 

7.04

 

7.32

 

7.06

 

7.31

 
Average Balances
Average Loans and Leases

$

11,739,785

$

11,727,649

$

10,770,720

$

11,510,222

$

10,624,311

Average Assets

 

19,741,139

 

19,189,581

 

17,605,394

 

19,053,626

 

17,442,054

Average Deposits

 

17,270,206

 

16,679,511

 

15,330,691

 

16,591,640

 

15,156,275

Average Shareholders' Equity

 

1,367,756

 

1,351,345

 

1,289,417

 

1,344,402

 

1,275,753

 
Per Share of Common Stock
Book Value

$

33.99

$

33.76

$

32.00

$

33.99

$

32.00

Tangible Book Value

 

33.21

 

32.97

 

31.22

 

33.21

 

31.22

Market Value
Closing

 

50.52

 

61.41

 

85.93

 

50.52

 

85.93

High

 

61.94

 

72.74

 

88.20

 

95.53

 

88.20

Low

 

48.77

 

51.15

 

79.13

 

46.70

 

66.54

 

September 30,

 

June 30,

 

December 31,

 

September 30,

2020

 

2020

 

2019

 

2019

As of Period End:
Balance Sheet Totals
Loans and Leases

$

11,793,608

$

11,805,370

$

10,990,892

$

10,881,298

Total Assets

 

20,109,489

 

19,769,942

 

18,095,496

 

17,672,140

Total Deposits

 

17,738,883

 

17,423,155

 

15,784,482

 

15,340,752

Other Debt

 

60,502

 

60,524

 

85,565

 

110,585

Total Shareholders' Equity

 

1,361,739

 

1,352,082

 

1,286,832

 

1,291,490

 
Asset Quality
Non-Performing Assets

$

18,626

$

22,701

$

20,117

$

21,645

Allowance for Credit Losses

 

203,496

 

173,439

 

138,150

 

108,936

Allowance to Loans and Leases Outstanding

 

1.73

%

 

1.47

%

 

1.00

%

 

1.00

%

 
Capital Ratios 4
Common Equity Tier 1 Capital Ratio

 

12.09

%

 

12.04

%

 

12.18

%

 

12.33

%

Tier 1 Capital Ratio

 

12.09

 

12.04

 

12.18

 

12.33

Total Capital Ratio

 

13.35

 

13.29

 

13.28

 

13.44

Tier 1 Leverage Ratio

 

6.81

 

6.90

 

7.25

 

7.32

Total Shareholders' Equity to Total Assets

 

6.77

 

6.84

 

7.11

 

7.31

Tangible Common Equity to Tangible Assets 5

 

6.63

 

6.69

 

6.95

 

7.14

Tangible Common Equity to Risk-Weighted Assets 5

 

12.02

 

12.07

 

11.85

 

12.10

 
Non-Financial Data
Full-Time Equivalent Employees

 

2,038

 

2,112

 

2,124

 

2,124

Branches

 

67

 

67

 

68

 

67

ATMs

 

358

 

367

 

387

 

379

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 Regulatory capital ratios as of September 30, 2020 are preliminary.
5 Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 "Reconciliation of Non-GAAP Financial Measures."
Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures Table 2

September 30,

 

June 30,

 

December 31,

 

September 30,

(dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 
Total Shareholders' Equity

$

1,361,739

 

$

1,352,082

 

$

1,286,832

 

$

1,291,490

 

Less: Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

 

31,517

 

Tangible Common Equity

$

1,330,222

 

$

1,320,565

 

$

1,255,315

 

$

1,259,973

 

 
Total Assets

$

20,109,489

 

$

19,769,942

 

$

18,095,496

 

$

17,672,140

 

Less: Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

 

31,517

 

Tangible Assets

$

20,077,972

 

$

19,738,425

 

$

18,063,979

 

$

17,640,623

 

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

$

11,068,888

 

$

10,941,894

 

$

10,589,061

 

$

10,416,560

 

 
Total Shareholders' Equity to Total Assets

 

6.77

%

 

6.84

%

 

7.11

%

 

7.31

%

Tangible Common Equity to Tangible Assets (Non-GAAP)

 

6.63

%

 

6.69

%

 

6.95

%

 

7.14

%

 
Tier 1 Capital Ratio

 

12.09

%

 

12.04

%

 

12.18

%

 

12.33

%

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

 

12.02

%

 

12.07

%

 

11.85

%

 

12.10

%

 
Note: Risk-Weighted Assets and Regulatory capital ratios as of September 30, 2020 are preliminary.
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)

 

2020

 

 

2020

 

2019

 

 

 

2020

 

2019

 

Interest Income
Interest and Fees on Loans and Leases

$

103,189

 

$

107,628

$

110,877

 

$

319,027

$

329,789

 

Income on Investment Securities
Available-for-Sale

 

14,558

 

 

14,576

 

17,512

 

 

45,845

 

46,016

 

Held-to-Maturity

 

15,967

 

 

16,723

 

18,796

 

 

51,942

 

62,866

 

Deposits

 

3

 

 

1

 

9

 

 

13

 

33

 

Funds Sold

 

149

 

 

92

 

656

 

 

787

 

2,830

 

Other

 

151

 

 

125

 

233

 

 

494

 

762

 

Total Interest Income

 

134,017

 

 

139,145

 

148,083

 

 

418,108

 

442,296

 

Interest Expense
Deposits

 

5,891

 

 

7,954

 

18,055

 

 

28,105

 

51,967

 

Securities Sold Under Agreements to Repurchase

 

3,622

 

 

4,020

 

4,257

 

 

11,667

 

13,451

 

Funds Purchased

 

-

 

 

18

 

146

 

 

90

 

815

 

Short-Term Borrowings

 

1

 

 

22

 

1

 

 

62

 

38

 

Other Debt

 

337

 

 

440

 

728

 

 

1,361

 

2,195

 

Total Interest Expense

 

9,851

 

 

12,454

 

23,187

 

 

41,285

 

68,466

 

Net Interest Income

 

124,166

 

 

126,691

 

124,896

 

 

376,823

 

373,830

 

Provision for Credit Losses

 

28,600

 

 

40,400

 

4,250

 

 

102,600

 

11,250

 

Net Interest Income After Provision for Credit Losses

 

95,566

 

 

86,291

 

120,646

 

 

274,223

 

362,580

 

Noninterest Income
Trust and Asset Management

 

10,752

 

 

10,550

 

10,930

 

 

32,217

 

33,076

 

Mortgage Banking

 

4,047

 

 

4,278

 

4,864

 

 

11,020

 

10,487

 

Service Charges on Deposit Accounts

 

6,027

 

 

5,097

 

7,592

 

 

18,575

 

22,239

 

Fees, Exchange, and Other Service Charges

 

12,296

 

 

9,417

 

14,900

 

 

34,913

 

43,360

 

Investment Securities Gains (Losses), Net

 

(1,121

)

 

13,216

 

(1,469

)

 

11,125

 

(3,080

)

Annuity and Insurance

 

881

 

 

883

 

1,278

 

 

2,692

 

5,662

 

Bank-Owned Life Insurance

 

1,806

 

 

1,649

 

1,647

 

 

5,035

 

5,136

 

Other

 

7,046

 

 

6,178

 

6,765

 

 

23,574

 

18,756

 

Total Noninterest Income

 

41,734

 

 

51,268

 

46,507

 

 

139,151

 

135,636

 

Noninterest Expense
Salaries and Benefits

 

51,951

 

 

50,715

 

54,345

 

 

157,129

 

164,442

 

Net Occupancy

 

7,281

 

 

8,761

 

8,803

 

 

24,997

 

24,976

 

Net Equipment

 

9,223

 

 

8,195

 

7,637

 

 

25,874

 

21,365

 

Data Processing

 

4,691

 

 

4,416

 

4,676

 

 

13,895

 

13,929

 

Professional Fees

 

2,743

 

 

3,061

 

2,184

 

 

9,012

 

6,814

 

FDIC Insurance

 

1,282

 

 

1,558

 

1,257

 

 

4,296

 

3,816

 

Other

 

12,778

 

 

12,186

 

21,447

 

 

39,950

 

50,789

 

Total Noninterest Expense

 

89,949

 

 

88,892

 

100,349

 

 

275,153

 

286,131

 

Income Before Provision for Income Taxes

 

47,351

 

 

48,667

 

66,804

 

 

138,221

 

212,085

 

Provision for Income Taxes

 

9,511

 

 

9,759

 

14,752

 

 

26,731

 

44,315

 

Net Income

$

37,840

 

$

38,908

$

52,052

 

$

111,490

$

167,770

 

Basic Earnings Per Share

$

0.95

 

$

0.98

$

1.30

 

$

2.81

$

4.14

 

Diluted Earnings Per Share

$

0.95

 

$

0.98

$

1.29

 

$

2.80

$

4.11

 

Dividends Declared Per Share

$

0.67

 

$

0.67

$

0.65

 

$

2.01

$

1.92

 

Basic Weighted Average Shares

 

39,745,120

 

 

39,703,735

 

40,190,508

 

 

39,710,252

 

40,554,036

 

Diluted Weighted Average Shares

 

39,869,135

 

 

39,832,475

 

40,450,742

 

 

39,872,406

 

40,806,295

 

 
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)

 

2020

 

 

2020

 

2019

 

 

2020

 

2019

Net Income

$

37,840

 

$

38,908

$

52,052

$

111,490

$

167,770

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

 

(4,900

)

 

7,730

 

5,405

 

44,389

 

28,533

Defined Benefit Plans

 

374

 

 

374

 

245

 

1,122

 

736

Other Comprehensive Income (Loss)

 

(4,526

)

 

8,104

 

5,650

 

45,511

 

29,269

Comprehensive Income

$

33,314

 

$

47,012

$

57,702

$

157,001

$

197,039

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition Table 5

September 30,

June 30,

December 31,

September 30,

(dollars in thousands)

 

2020

 

2020

 

2019

 

2019

Assets
Interest-Bearing Deposits in Other Banks

$

4,233

 

$

2,310

 

$

4,979

 

$

2,946

 

Funds Sold

 

736,524

 

 

800,857

 

 

254,574

 

 

108,446

 

Investment Securities
Available-for-Sale

 

3,190,313

 

 

2,726,478

 

 

2,619,003

 

 

2,594,394

 

Held-to-Maturity (Fair Value of $3,288,668; $3,374,294; $3,062,882; and $2,972,273)

 

3,198,830

 

 

3,276,829

 

 

3,042,294

 

 

2,946,910

 

Loans Held for Sale

 

-

 

 

20,711

 

 

39,062

 

 

36,720

 

Loans and Leases

 

11,793,608

 

 

11,805,370

 

 

10,990,892

 

 

10,881,298

 

Allowance for Credit Losses

 

(203,496

)

 

(173,439

)

 

(110,027

)

 

(108,936

)

Net Loans and Leases

 

11,590,112

 

 

11,631,931

 

 

10,880,865

 

 

10,772,362

 

Total Earning Assets

 

18,720,012

 

 

18,459,116

 

 

16,840,777

 

 

16,461,778

 

Cash and Due from Banks

 

260,167

 

 

242,423

 

 

299,105

 

 

259,492

 

Premises and Equipment, Net

 

199,021

 

 

198,582

 

 

188,388

 

 

179,453

 

Operating Lease Right-of-Use Assets

 

96,200

 

 

97,166

 

 

100,838

 

 

101,005

 

Accrued Interest Receivable

 

57,370

 

 

50,645

 

 

46,476

 

 

47,897

 

Foreclosed Real Estate

 

2,332

 

 

2,506

 

 

2,737

 

 

2,939

 

Mortgage Servicing Rights

 

21,887

 

 

22,904

 

 

25,022

 

 

24,408

 

Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

 

31,517

 

Bank-Owned Life Insurance

 

291,231

 

 

291,185

 

 

287,962

 

 

286,936

 

Other Assets

 

429,752

 

 

373,898

 

 

272,674

 

 

276,715

 

Total Assets

$

20,109,489

 

$

19,769,942

 

$

18,095,496

 

$

17,672,140

 

 
Liabilities
Deposits
Noninterest-Bearing Demand

$

5,428,567

 

$

5,485,015

 

$

4,489,525

 

$

4,392,706

 

Interest-Bearing Demand

 

3,824,448

 

 

3,437,654

 

 

3,127,205

 

 

3,000,865

 

Savings

 

6,763,891

 

 

6,821,710

 

 

6,365,321

 

 

6,141,098

 

Time

 

1,721,977

 

 

1,678,776

 

 

1,802,431

 

 

1,806,083

 

Total Deposits

 

17,738,883

 

 

17,423,155

 

 

15,784,482

 

 

15,340,752

 

Securities Sold Under Agreements to Repurchase

 

602,106

 

 

603,206

 

 

604,306

 

 

604,299

 

Other Debt

 

60,502

 

 

60,524

 

 

85,565

 

 

110,585

 

Operating Lease Liabilities

 

103,869

 

 

104,741

 

 

108,210

 

 

108,264

 

Retirement Benefits Payable

 

43,505

 

 

43,833

 

 

44,504

 

 

39,682

 

Accrued Interest Payable

 

6,613

 

 

7,775

 

 

8,040

 

 

8,435

 

Taxes Payable and Deferred Taxes

 

12,124

 

 

38,297

 

 

16,085

 

 

21,089

 

Other Liabilities

 

180,148

 

 

136,329

 

 

157,472

 

 

147,544

 

Total Liabilities

 

18,747,750

 

 

18,417,860

 

 

16,808,664

 

 

16,380,650

 

Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: September 30, 2020 - 58,248,690 / 40,060,675;
June 30, 2020 - 58,263,452 / 40,047,694; December 31, 2019 - 58,166,910 / 40,039,695;
and September 30, 2019 - 58,176,305 / 40,359,259)

 

580

 

 

580

 

 

579

 

 

579

 

Capital Surplus

 

588,632

 

 

586,946

 

 

582,566

 

 

580,200

 

Accumulated Other Comprehensive Gain (Loss)

 

14,399

 

 

18,925

 

 

(31,112

)

 

(21,774

)

Retained Earnings

 

1,797,763

 

 

1,786,351

 

 

1,761,415

 

 

1,730,437

 

Treasury Stock, at Cost (Shares: September 30, 2020 - 18,188,015; June 30, 2020 - 18,215,758;
December 31, 2019 - 18,127,215; and September 30, 2019 - 17,817,046)

 

(1,039,635

)

 

(1,040,720

)

 

(1,026,616

)

 

(997,952

)

Total Shareholders' Equity

 

1,361,739

 

 

1,352,082

 

 

1,286,832

 

 

1,291,490

 

Total Liabilities and Shareholders' Equity

$

20,109,489

 

$

19,769,942

 

$

18,095,496

 

$

17,672,140

 

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity Table 6
Accum.
Other
Compre-
hensive
Common Shares Common Capital Income Retained Treasury
(dollars in thousands) 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

-

 

 

-

 

-

 

-

 

 

111,490

 

 

-

 

 

111,490

 

Other Comprehensive Income

-

 

 

-

 

-

 

45,511

 

 

-

 

 

-

 

 

45,511

 

Cumulative Change in Accounting Principle

-

 

 

-

 

-

 

-

 

 

3,632

 

 

-

 

 

3,632

 

Share-Based Compensation

-

 

 

-

 

5,347

 

-

 

 

-

 

 

-

 

 

5,347

 

Common Stock Issued under Purchase and Equity
Compensation Plans

222,682

 

 

1

 

719

 

-

 

 

1,762

 

 

4,878

 

 

7,360

 

Common Stock Repurchased

(201,702

)

 

-

 

-

 

-

 

 

-

 

 

(17,897

)

 

(17,897

)

Cash Dividends Declared ($2.01 per share)

-

 

 

-

 

-

 

-

 

 

(80,536

)

 

-

 

 

(80,536

)

Balance as of September 30, 2020

40,060,675

 

$

580

$

588,632

$

14,399

 

$

1,797,763

 

$

(1,039,635

)

$

1,361,739

 

 
Balance as of December 31, 2018

41,499,898

 

$

577

$

571,704

$

(51,043

)

$

1,641,314

 

$

(894,352

)

$

1,268,200

 

Net Income

-

 

 

-

 

-

 

-

 

 

167,770

 

 

-

 

 

167,770

 

Other Comprehensive Income

-

 

 

-

 

-

 

29,269

 

 

-

 

 

-

 

 

29,269

 

Share-Based Compensation

-

 

 

-

 

6,662

 

-

 

 

-

 

 

-

 

 

6,662

 

Common Stock Issued under Purchase and Equity
Compensation Plans

200,984

 

 

2

 

1,834

 

-

 

 

(109

)

 

4,275

 

 

6,002

 

Common Stock Repurchased

(1,341,623

)

 

-

 

-

 

-

 

 

-

 

 

(107,875

)

 

(107,875

)

Cash Dividends Declared ($1.92 per share)

-

 

 

-

 

-

 

-

 

 

(78,538

)

 

-

 

 

(78,538

)

Balance as of September 30, 2019

40,359,259

 

$

579

$

580,200

$

(21,774

)

$

1,730,437

 

$

(997,952

)

$

1,291,490

 

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, 2020

 

June 30, 2020

 

September 30, 2019

Average

Income/

Yield/

 

Average

Income/

Yield/

 

Average

Income/

Yield/

(dollars in millions)

Balance

Expense

Rate

 

Balance

Expense

Rate

 

Balance

Expense

Rate

Earning Assets
Interest-Bearing Deposits in Other Banks

$

2.6

$

-

0.45

%

$

2.6

$

-

0.18

%

$

3.1

$

-

1.19

%

Funds Sold

 

584.2

 

0.1

0.10

 

545.9

 

0.1

0.07

 

121.1

 

0.7

2.12

Investment Securities
Available-for-Sale
Taxable

 

2,918.6

 

14.3

1.96

 

2,614.1

 

14.3

2.19

 

2,647.9

 

17.1

2.59

Non-Taxable

 

25.8

 

0.3

4.22

 

32.2

 

0.4

4.45

 

42.6

 

0.5

4.45

Held-to-Maturity
Taxable

 

3,257.7

 

15.7

1.93

 

2,957.6

 

16.4

2.22

 

2,873.7

 

18.5

2.57

Non-Taxable

 

54.1

 

0.4

2.66

 

54.4

 

0.4

2.66

 

65.2

 

0.4

2.72

Total Investment Securities

 

6,256.2

 

30.7

1.96

 

5,658.3

 

31.5

2.22

 

5,629.4

 

36.5

2.59

Loans Held for Sale

 

15.9

 

0.1

3.24

 

23.4

 

0.2

3.24

 

24.3

 

0.2

3.94

Loans and Leases 1
Commercial and Industrial

 

1,917.0

 

14.1

2.93

 

1,963.8

 

17.9

3.67

 

1,383.8

 

14.4

4.14

Commercial Mortgage

 

2,722.3

 

21.7

3.18

 

2,622.9

 

22.3

3.42

 

2,423.7

 

26.2

4.28

Construction

 

234.0

 

2.1

3.60

 

255.8

 

2.5

3.93

 

126.0

 

1.6

5.10

Commercial Lease Financing

 

110.7

 

0.5

1.82

 

110.9

 

0.5

1.88

 

161.8

 

1.0

2.57

Residential Mortgage

 

3,988.7

 

36.7

3.68

 

3,939.6

 

36.0

3.65

 

3,809.6

 

36.5

3.83

Home Equity

 

1,625.2

 

14.1

3.45

 

1,665.2

 

14.3

3.45

 

1,689.2

 

16.1

3.79

Automobile

 

708.3

 

6.4

3.59

 

701.2

 

6.2

3.55

 

707.0

 

6.4

3.59

Other 2

 

433.6

 

7.6

6.96

 

468.2

 

7.9

6.77

 

469.6

 

8.5

7.16

Total Loans and Leases

 

11,739.8

 

103.2

3.50

 

11,727.6

 

107.6

3.68

 

10,770.7

 

110.7

4.09

Other

 

33.3

 

0.2

1.81

 

34.0

 

0.1

1.47

 

35.0

 

0.3

2.66

Total Earning Assets 3

 

18,632.0

 

134.3

2.88

 

17,991.8

 

139.5

3.11

 

16,583.6

 

148.4

3.56

Cash and Due from Banks

 

234.3

 

302.4

 

231.5

Other Assets

 

874.8

 

895.4

 

790.3

Total Assets

$

19,741.1

$

19,189.6

$

17,605.4

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

$

3,465.5

 

0.4

0.04

$

3,226.6

 

0.6

0.07

$

2,950.2

 

1.1

0.15

Savings

 

6,886.0

 

1.7

0.10

 

6,691.4

 

2.2

0.13

 

6,122.0

 

8.8

0.57

Time

 

1,568.3

 

3.8

0.97

 

1,826.8

 

5.2

1.13

 

1,851.0

 

8.2

1.75

Total Interest-Bearing Deposits

 

11,919.8

 

5.9

0.20

 

11,744.8

 

8.0

0.27

 

10,923.2

 

18.1

0.66

Short-Term Borrowings

 

-

 

-

-

 

57.6

 

-

0.28

 

27.1

 

0.1

2.13

Securities Sold Under Agreements to Repurchase

 

602.9

 

3.6

2.35

 

602.9

 

4.0

2.64

 

513.8

 

4.3

3.24

Other Debt

 

60.5

 

0.3

2.22

 

60.5

 

0.5

2.91

 

110.6

 

0.7

2.62

Total Interest-Bearing Liabilities

 

12,583.2

 

9.8

0.31

 

12,465.8

 

12.5

0.40

 

11,574.7

 

23.2

0.79

Net Interest Income

$

124.5

$

127.0

$

125.2

Interest Rate Spread

2.57

%

2.71

%

2.77

%

Net Interest Margin

2.67

%

2.83

%

3.01

%

Noninterest-Bearing Demand Deposits

 

5,350.4

 

4,934.7

 

4,407.5

Other Liabilities

 

439.7

 

437.8

 

333.8

Shareholders' Equity

 

1,367.8

 

1,351.3

 

1,289.4

Total Liabilities and Shareholders' Equity

$

19,741.1

$

19,189.6

$

17,605.4

1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $295,000, $358,000, and $296,000 for the three months ended September 30, 2020, June 30, 2020, and September 30, 2019, 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, 2020 September 30, 2019
Average Income/ Yield/ Average Income/ Yield/
(dollars in millions) Balance Expense Rate Balance Expense Rate
Earning Assets
Interest-Bearing Deposits in Other Banks

$

2.2

$

-

0.76

%

$

3.0

$

-

1.49

%

Funds Sold

 

428.3

 

0.8

0.24

 

161.7

 

2.8

2.31

Investment Securities
Available-for-Sale
Taxable

 

2,745.7

 

45.1

2.19

 

2,086.5

 

43.0

2.75

Non-Taxable

 

30.1

 

1.0

4.37

 

135.3

 

3.8

3.73

Held-to-Maturity
Taxable

 

3,084.4

 

51.0

2.21

 

3,199.9

 

59.9

2.50

Non-Taxable

 

54.4

 

1.1

2.66

 

163.5

 

3.8

3.08

Total Investment Securities

 

5,914.6

 

98.2

2.21

 

5,585.2

 

110.5

2.64

Loans Held for Sale

 

20.8

 

0.5

3.35

 

18.5

 

0.6

4.06

Loans and Leases 1
Commercial and Industrial

 

1,763.9

 

45.2

3.43

 

1,375.9

 

44.6

4.33

Commercial Mortgage

 

2,631.9

 

69.2

3.51

 

2,373.9

 

76.9

4.33

Construction

 

234.3

 

7.1

4.04

 

133.8

 

5.2

5.22

Commercial Lease Financing

 

111.0

 

1.6

1.88

 

160.9

 

3.0

2.45

Residential Mortgage

 

3,941.3

 

109.5

3.70

 

3,740.5

 

108.0

3.85

Home Equity

 

1,656.8

 

43.6

3.51

 

1,691.4

 

48.4

3.83

Automobile

 

710.2

 

19.0

3.57

 

688.0

 

18.6

3.62

Other 2

 

460.8

 

23.9

6.93

 

459.9

 

24.8

7.21

Total Loans and Leases

 

11,510.2

 

319.1

3.70

 

10,624.3

 

329.5

4.14

Other

 

33.9

 

0.5

1.95

 

35.2

 

0.8

2.89

Total Earning Assets 3

 

17,910.0

 

419.1

3.12

 

16,427.9

 

444.2

3.61

Cash and Due from Banks

 

271.7

 

237.9

Other Assets

 

871.9

 

776.3

Total Assets

$

19,053.6

$

17,442.1

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

$

3,268.1

 

1.9

0.08

$

2,930.9

 

4.0

0.18

Savings

 

6,693.9

 

11.0

0.22

 

5,962.9

 

24.4

0.55

Time

 

1,712.2

 

15.2

1.19

 

1,807.6

 

23.6

1.75

Total Interest-Bearing Deposits

 

11,674.2

 

28.1

0.32

 

10,701.4

 

52.0

0.65

Short-Term Borrowings

 

38.3

 

0.2

0.52

 

46.8

 

0.9

2.40

Securities Sold Under Agreements to Repurchase

 

603.4

 

11.6

2.54

 

507.5

 

13.4

3.50

Other Debt

 

62.6

 

1.4

2.90

 

113.7

 

2.2

2.58

Total Interest-Bearing Liabilities

 

12,378.5

 

41.3

0.44

 

11,369.4

 

68.5

0.80

Net Interest Income

$

377.8

$

375.7

Interest Rate Spread

2.68

%

2.81

%

Net Interest Margin

2.82

%

3.05

%

Noninterest-Bearing Demand Deposits

 

4,917.4

 

4,454.9

Other Liabilities

 

413.3

 

342.0

Shareholders' Equity

 

1,344.4

 

1,275.8

Total Liabilities and Shareholders' Equity

$

19,053.6

$

17,442.1

1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1,010,000 and $1,878,000 for the nine months ended September 30, 2020 and September 30, 2019, respectively.
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8a

Three Months Ended September 30, 2020

Compared to June 30, 2020

(dollars in millions)

Volume 1

Rate 1

Total

Change in Interest Income:
Investment Securities
Available-for-Sale
Taxable

$

1.6

 

$

(1.6

)

$

-

 

Non-Taxable

 

(0.1

)

 

-

 

 

(0.1

)

Held-to-Maturity
Taxable

 

1.6

 

 

(2.3

)

 

(0.7

)

Total Investment Securities

 

3.1

 

 

(3.9

)

 

(0.8

)

Loans Held for Sale

 

(0.1

)

 

-

 

 

(0.1

)

Loans and Leases
Commercial and Industrial

 

(0.4

)

 

(3.4

)

 

(3.8

)

Commercial Mortgage

 

0.9

 

 

(1.5

)

 

(0.6

)

Construction

 

(0.2

)

 

(0.2

)

 

(0.4

)

Residential Mortgage

 

0.5

 

 

0.2

 

 

0.7

 

Home Equity

 

(0.2

)

 

-

 

 

(0.2

)

Automobile

 

0.1

 

 

0.1

 

 

0.2

 

Other 2

 

(0.5

)

 

0.2

 

 

(0.3

)

Total Loans and Leases

 

0.2

 

 

(4.6

)

 

(4.4

)

Other

 

-

 

 

0.1

 

 

0.1

 

Total Change in Interest Income

 

3.2

 

 

(8.4

)

 

(5.2

)

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

-

 

 

(0.2

)

 

(0.2

)

Savings

 

0.1

 

 

(0.6

)

 

(0.5

)

Time

 

(0.7

)

 

(0.7

)

 

(1.4

)

Total Interest-Bearing Deposits

 

(0.6

)

 

(1.5

)

 

(2.1

)

Securities Sold Under Agreements to Repurchase

 

-

 

 

(0.4

)

 

(0.4

)

Other Debt

 

-

 

 

(0.2

)

 

(0.2

)

Total Change in Interest Expense

 

(0.6

)

 

(2.1

)

 

(2.7

)

 
Change in Net Interest Income

$

3.8

 

$

(6.3

)

$

(2.5

)

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, 2020

Compared to September 30, 2019

(dollars in millions)

Volume 1

Rate 1

Total

Change in Interest Income:
Funds Sold

$

0.6

 

$

(1.2

)

$

(0.6

)

Investment Securities
Available-for-Sale
Taxable

 

1.6

 

 

(4.4

)

 

(2.8

)

Non-Taxable

 

(0.2

)

 

-

 

 

(0.2

)

Held-to-Maturity
Taxable

 

2.2

 

 

(5.0

)

 

(2.8

)

Total Investment Securities

 

3.6

 

 

(9.4

)

 

(5.8

)

Loans Held for Sale

 

(0.1

)

 

-

 

 

(0.1

)

Loans and Leases
Commercial and Industrial

 

4.6

 

 

(4.9

)

 

(0.3

)

Commercial Mortgage

 

2.9

 

 

(7.4

)

 

(4.5

)

Construction

 

1.1

 

 

(0.6

)

 

0.5

 

Commercial Lease Financing

 

(0.3

)

 

(0.2

)

 

(0.5

)

Residential Mortgage

 

1.7

 

 

(1.5

)

 

0.2

 

Home Equity

 

(0.6

)

 

(1.4

)

 

(2.0

)

Other 2

 

(0.6

)

 

(0.3

)

 

(0.9

)

Total Loans and Leases

 

8.8

 

 

(16.3

)

 

(7.5

)

Other

 

-

 

 

(0.1

)

 

(0.1

)

Total Change in Interest Income

 

12.9

 

 

(27.0

)

 

(14.1

)

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

0.2

 

 

(0.9

)

 

(0.7

)

Savings

 

1.0

 

 

(8.1

)

 

(7.1

)

Time

 

(1.2

)

 

(3.2

)

 

(4.4

)

Total Interest-Bearing Deposits

 

-

 

 

(12.2

)

 

(12.2

)

Short-Term Borrowings

 

(0.1

)

 

-

 

 

(0.1

)

Securities Sold Under Agreements to Repurchase

 

0.6

 

 

(1.3

)

 

(0.7

)

Other Debt

 

(0.3

)

 

(0.1

)

 

(0.4

)

Total Change in Interest Expense

 

0.2

 

 

(13.6

)

 

(13.4

)

 
Change in Net Interest Income

$

12.7

 

$

(13.4

)

$

(0.7

)

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 8c
Nine Months Ended September 30, 2020
Compared to September 30, 2019
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Funds Sold

$

2.0

 

$

(4.0

)

$

(2.0

)

Investment Securities
Available-for-Sale
Taxable

 

12.0

 

 

(9.9

)

 

2.1

 

Non-Taxable

 

(3.4

)

 

0.6

 

 

(2.8

)

Held-to-Maturity
Taxable

 

(2.1

)

 

(6.8

)

 

(8.9

)

Non-Taxable

 

(2.2

)

 

(0.5

)

 

(2.7

)

Total Investment Securities

 

4.3

 

 

(16.6

)

 

(12.3

)

Loans Held for Sale

 

0.1

 

 

(0.2

)

 

(0.1

)

Loans and Leases
Commercial and Industrial

 

11.1

 

 

(10.5

)

 

0.6

 

Commercial Mortgage

 

7.8

 

 

(15.5

)

 

(7.7

)

Construction

 

3.3

 

 

(1.4

)

 

1.9

 

Commercial Lease Financing

 

(0.8

)

 

(0.6

)

 

(1.4

)

Residential Mortgage

 

5.6

 

 

(4.1

)

 

1.5

 

Home Equity

 

(0.9

)

 

(3.9

)

 

(4.8

)

Automobile

 

0.6

 

 

(0.2

)

 

0.4

 

Other 2

 

-

 

 

(0.9

)

 

(0.9

)

Total Loans and Leases

 

26.7

 

 

(37.1

)

 

(10.4

)

Other

 

(0.1

)

 

(0.2

)

 

(0.3

)

Total Change in Interest Income

 

33.0

 

 

(58.1

)

 

(25.1

)

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

0.4

 

 

(2.5

)

 

(2.1

)

Savings

 

2.7

 

 

(16.1

)

 

(13.4

)

Time

 

(1.2

)

 

(7.2

)

 

(8.4

)

Total Interest-Bearing Deposits

 

1.9

 

 

(25.8

)

 

(23.9

)

Short-Term Borrowings

 

(0.1

)

 

(0.6

)

 

(0.7

)

Securities Sold Under Agreements to Repurchase

 

2.3

 

 

(4.1

)

 

(1.8

)

Other Debt

 

(1.1

)

 

0.3

 

 

(0.8

)

Total Change in Interest Expense

 

3.0

 

 

(30.2

)

 

(27.2