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Bank of Hawaii Corporation 2020 Financial Results

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  • 2020 Earnings $3.86 Per Diluted Share
  • 2020 Net Income $153.8 Million
  • Diluted Earnings Per Share $1.06 for Fourth Quarter of 2020
  • Net Income $42.3 Million for Fourth Quarter of 2020
  • Board of Directors Declares Dividend of $0.67 Per Share

Bank of Hawaii Corporation (NYSE:BOH) today reported diluted earnings per share of $3.86 for the full year of 2020 compared with diluted earnings per share of $5.56 in 2019. Net income for the year was $153.8 million compared with net income of $225.9 million in the previous year. The return on average assets for the full year of 2020 was 0.79 percent compared with 1.29 percent in 2019. The return on average equity for the full year of 2020 was 11.38 percent compared with 17.65 percent in 2019. The efficiency ratio for the full year of 2020 improved to 54.91 percent compared with 55.68 percent in 2019.

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"Bank of Hawaii finished 2020 with solid financial performance despite the many challenges we faced during the year due to the COVID-19 pandemic," said Peter Ho, Chairman, President, and CEO. "Our loan balances grew 8.6 percent in 2020 and our deposit balances reached another record high, growing 15.4 percent compared with the prior year. Total assets expanded to a new record high of $20.6 billion at the end of the year. Our overall asset quality remained stable and our capital and liquidity all remain strong. During the year our disciplined approach to expense management allowed us to continue making significant progress on our strategic initiatives which position us well for continued growth in the future."

Diluted earnings per share were $1.06 for the fourth quarter of 2020, an increase from $0.95 in the third quarter of 2020 and down from $1.45 in the fourth quarter of 2019. Net income for the fourth quarter of 2020 was $42.3 million, up from $37.8 million in the previous quarter and down from $58.1 million in the same quarter in 2019. The return on average assets for the fourth quarter of 2020 was 0.83 percent compared with 0.76 percent in the third quarter of 2020 and 1.29 percent in the fourth quarter of 2019. The return on average equity for the fourth quarter of 2020 was 12.26 percent compared with 11.01 percent in the third quarter of 2020 and 17.84 percent in the fourth quarter of 2019. The efficiency ratio for the fourth quarter of 2020 was 59.88 percent compared with 54.22 percent in the previous quarter and 54.26 percent in the same quarter in 2019.

Financial Highlights

Net interest income, on a taxable-equivalent basis, was $497.6 million for the full year of 2020, a decrease of $2.3 million from net interest income of $499.9 million in 2019. Net interest income, on a taxable-equivalent basis, for the fourth quarter of 2020 was $119.8 million, a decrease of $4.7 million compared with net interest income of $124.5 million in the third quarter of 2020 and down $4.4 million from net interest income of $124.2 million in the fourth quarter of 2019. Net interest income 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. Analyses of changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin for the full year of 2020 was 2.73 percent, a decrease of 30 basis points from the net interest margin of 3.03 percent in 2019. Adjusted for the lease impairment, the decrease in the net interest margin is largely due to lower rates and higher levels of liquidity from continued strong deposit growth. The net interest margin was 2.48 percent in the fourth quarter of 2020, a decrease of 19 basis points from the previous quarter and 47 basis points from the same quarter in 2019.

The provision for credit losses for the full year of 2020 was $117.8 million compared with a provision for credit losses of $16.0 million in 2019. Results for the fourth quarter of 2020 included a provision for credit losses of $15.2 million compared with $28.6 million in the previous quarter and $4.8 million in the same quarter in 2019.

Noninterest income for the full year of 2020 was $184.4 million, an increase of $1.1 million or 0.6 percent compared with noninterest income of $183.3 million in 2019. Noninterest income was $45.3 million in the fourth quarter of 2020 compared with noninterest income of $41.7 million in the third quarter of 2020 and $47.7 million in the fourth quarter of 2019. The increase in noninterest income during the fourth quarter of 2020 compared with the prior quarter is largely due to an increase in mortgage banking income.

Noninterest expense for the full year of 2020 was $373.8 million, a decrease of $5.4 million or 1.4 percent compared with noninterest expense of $379.2 million in 2019. Noninterest expense was $98.7 million in the fourth quarter of 2020 compared with noninterest expense of $89.9 million in the third quarter of 2020 and $93.1 million in the fourth quarter of 2019. Noninterest expense 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. Noninterest expense in the fourth quarter also included a charge of $0.8 million related to the true-up of amortization on an investment. 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 fourth quarter of 2019. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the full year of 2020 was 18.68 percent compared with 20.96 percent for the full year of 2019. The effective tax rate for the fourth quarter of 2020 was 16.87 percent compared with 20.09 percent in the previous quarter and 21.15 percent during the same quarter in 2019. The decrease in the effective tax rate for the fourth quarter of 2020 is primarily due to a return to provision adjustment of $1.6 million.

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 overall asset quality continued to remain relatively stable during the fourth quarter of 2020. Total non-performing assets were $18.5 million at December 31, 2020, down from $18.6 million at September 30, 2020 and $20.1 million at December 31, 2019. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.15 percent at December 31, 2020 compared with 0.16 percent at September 30, 2020 and 0.18 percent at December 31, 2019.

Accruing loans and leases past due 90 days or more were $10.5 million at December 31, 2020 compared with $9.6 million at September 30, 2020 and $8.4 million at December 31, 2019. Restructured loans and leases not included in non-accrual loans or accruing loans past due 90 days or more were $68.1 million at December 31, 2020 compared with $58.7 million at September 30, 2020 and $63.1 million at December 31, 2019. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net charge-offs for the full year of 2020 were $7.1 million or 0.06 percent of total average loans and leases compared with net charge-offs of $12.7 million or 0.12 percent of total average loans and leases in 2019. Net charge-offs during the fourth quarter of 2020 were a net recovery of $0.3 million and were comprised of charge-offs of $3.2 million fully offset by recoveries of $3.5 million. Net charge-offs during the third quarter of 2020 were a net recovery of $1.5 million as loan charge-offs of $2.3 million were fully offset by recoveries of $3.8 million. Net charge-offs during the fourth quarter of 2019 were $3.7 million or 0.13 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $6.2 million and recoveries of $2.6 million.

The allowance for credit losses was $216.3 million at December 31, 2020, an increase from $203.5 million at September 30, 2020 and $110.0 million at December 31, 2019. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.81 percent at December 31, 2020, up from 1.73 percent at September 30, 2020 and 1.00 percent at December 31, 2019. The reserve for unfunded commitments was $2.4 million at December 31, 2020, a slight increase from $2.3 million at the end of the prior quarter and down from $6.8 million at the end of the same quarter in 2019. Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets increased to a new record of $20.6 billion at December 31, 2020 compared with total assets of $20.1 billion at September 30, 2020 and total assets of $18.1 billion at December 31, 2019. Average total assets were $19.4 billion for the full year of 2020, an increase of 10.5 percent from average total assets of $17.5 billion during 2019.

The investment securities portfolio was $7.1 billion at December 31, 2020, up from total securities of $6.4 billion at September 30, 2020 and $5.7 billion at December 31, 2019 due to growth in deposits that continued to outpace loan growth. The portfolio remains largely comprised of securities issued by U.S. government agencies and includes $3.3 billion in securities held to maturity and $3.8 billion in securities available for sale at December 31, 2020. The securities portfolio at September 30, 2020 included $3.2 billion in securities held to maturity and $3.2 billion in securities available for sale compared with $3.0 billion in securities held to maturity and $2.6 billion in securities available for sale at December 31, 2019.

Total loans and leases were $11.9 billion at December 31, 2020, an increase of 1.2 percent from total loans and leases of $11.8 billion at September 30, 2020 and up 8.6 percent from total loans and leases of $11.0 billion at December 31, 2019. Average total loans and leases were $11.6 billion during the full year of 2020, an increase of 8.5 percent from average total loans and leases of $10.7 billion during 2019.

The commercial loan portfolio was $5.1 billion at the end of December 31, 2020, an increase of $83.8 million or 1.7 percent from $5.0 billion at the end of the third quarter of 2020 and up $886.9 million or 21.0 percent from $4.2 billion at the end of the fourth quarter of 2019. Consumer loans were $6.8 billion at December 31, 2020, an increase of $62.6 million or 0.9 percent from $6.8 billion at the end of the third quarter of 2020 and up $62.3 million or 0.9 percent from $6.8 billion at the end of the fourth quarter of 2019. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $18.2 billion at December 31, 2020, an increase of 2.7 percent from total deposits of $17.7 billion at September 30, 2020 and up 15.4 percent from total deposits of $15.8 billion at December 31, 2019. Average total deposits were $16.9 billion during the full year of 2020, an increase of 11.0 percent from average total deposits of $15.2 billion during 2019.

Consumer deposits were $9.3 billion at December 31, 2020, an increase of $443.9 million or 5.0 percent from $8.9 billion at the end of the third quarter of 2020 and an increase of $1.2 billion or 15.1 percent from $8.1 billion at the end of the fourth quarter of 2019. Commercial deposits were $7.3 billion at December 31, 2020, an increase of $143.3 million or 2.0 percent from $7.2 billion at the end of the third quarter of 2020 and an increase of $978.6 million or 15.5 percent from $6.3 billion at the end of the fourth quarter of 2019. Other deposits, including public funds, were $1.6 billion at December 31, 2020, a decrease of $114.5 million or 6.8 percent from $1.7 billion at the end of the third quarter of 2020 and an increase of $219.3 million or 16.3 percent from $1.3 billion at the end of the fourth quarter of 2019. Deposit balances are summarized in Tables 7a, 7b, and 10.

Total shareholders' equity was $1.4 billion at December 31, 2020, an increase of $12.8 million from September 30, 2020, and up $87.7 million from December 31, 2019. There were no shares repurchased during the fourth quarter of 2020. The Tier 1 Capital Ratio was 12.06 percent at December 31, 2020 compared with 12.09 percent at September 30, 2020 and 12.18 percent at December 31, 2019. The Tier 1 Leverage Ratio at December 31, 2020 was 6.71 percent compared with 6.81 percent at September 30, 2020 and 7.25 percent at December 31, 2019. The decrease in the Tier 1 Leverage ratio is due to balance sheet growth related to the significant increase in customer deposits.

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 March 12, 2021 to shareholders of record at the close of business on February 26, 2021.

Conference Call Information

The Company will review its 2020 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/ukntid8g. 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 25, 2021. 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 4199179 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, 2019, and its Form 10-Qs for the fiscal quarters ended March 31, 2020, June 30, 2020 and October 31, 2020, 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 Highlights Table 1

Three Months Ended

 

Year Ended

December 31,

 

September 30,

 

December 31,

 

December 31,

(dollars in thousands, except per share amounts)

 

2020

 

 

2020

 

 

2019

 

 

2020

 

 

2019

For the Period:
Operating Results
Net Interest Income

$

119,499

$

124,166

$

123,885

$

496,322

$

497,715

Provision for Credit Losses

 

15,200

 

28,600

 

4,750

 

117,800

 

16,000

Total Noninterest Income

 

45,258

 

41,734

 

47,702

 

184,409

 

183,338

Total Noninterest Expense

 

98,654

 

89,949

 

93,096

 

373,807

 

379,227

Net Income

 

42,314

 

37,840

 

58,143

 

153,804

 

225,913

Basic Earnings Per Share

 

1.06

 

0.95

 

1.46

 

3.87

 

5.59

Diluted Earnings Per Share

 

1.06

 

0.95

 

1.45

 

3.86

 

5.56

Dividends Declared Per Share

 

0.67

 

0.67

 

0.67

 

2.68

 

2.59

 
Performance Ratios
Return on Average Assets

 

0.83

%

 

0.76

%

 

1.29

%

 

0.79

%

 

1.29

%

Return on Average Shareholders' Equity

 

12.26

 

11.01

 

17.84

 

11.38

 

17.65

Efficiency Ratio 1

 

59.88

 

54.22

 

54.26

 

54.91

 

55.68

Net Interest Margin 2

 

2.48

 

2.67

 

2.95

 

2.73

 

3.03

Dividend Payout Ratio 3

 

63.21

 

70.53

 

45.89

 

69.25

 

46.33

Average Shareholders' Equity to Average Assets

 

6.74

 

6.93

 

7.26

 

6.97

 

7.30

 
Average Balances
Average Loans and Leases

$

11,835,929

$

11,739,785

$

10,878,672

$

11,592,093

$

10,688,424

Average Assets

 

20,382,633

 

19,741,139

 

17,821,004

 

19,387,693

 

17,537,570

Average Deposits

 

17,819,116

 

17,270,206

 

15,441,097

 

16,900,186

 

15,228,066

Average Shareholders' Equity

 

1,372,971

 

1,367,756

 

1,292,930

 

1,351,583

 

1,280,082

 
Per Share of Common Stock
Book Value

$

34.26

$

33.99

$

32.14

$

34.26

$

32.14

Tangible Book Value

 

33.47

 

33.21

 

31.35

 

33.47

 

31.35

Market Value
Closing

 

76.62

 

50.52

 

95.16

 

76.62

 

95.16

High

 

80.38

 

61.94

 

95.68

 

95.53

 

95.68

Low

 

49.25

 

48.77

 

81.29

 

46.70

 

66.54

 
December 31, September 30, December 31,

 

2020

 

2020

 

2019

As of Period End:
Balance Sheet Totals
Loans and Leases

$

11,940,020

$

11,793,608

$

10,990,892

Total Assets

 

20,603,651

 

20,109,489

 

18,095,496

Total Deposits

 

18,211,621

 

17,738,883

 

15,784,482

Other Debt

 

60,481

 

60,502

 

85,565

Total Shareholders' Equity

 

1,374,507

 

1,361,739

 

1,286,832

 
Asset Quality
Non-Performing Assets

$

18,481

$

18,626

$

20,117

Allowance for Credit Losses

 

216,252

 

203,496

 

110,027

Allowance to Loans and Leases Outstanding

 

1.81

%

 

1.73

%

 

1.00

%

 
Capital Ratios 4
Common Equity Tier 1 Capital Ratio

 

12.06

%

 

12.09

%

 

12.18

%

Tier 1 Capital Ratio

 

12.06

 

12.09

 

12.18

Total Capital Ratio

 

13.31

 

13.35

 

13.28

Tier 1 Leverage Ratio

 

6.71

 

6.81

 

7.25

Total Shareholders' Equity to Total Assets

 

6.67

 

6.77

 

7.11

Tangible Common Equity to Tangible Assets 5

 

6.53

 

6.63

 

6.95

Tangible Common Equity to Risk-Weighted Assets 5

 

11.89

 

12.02

 

11.85

 
Non-Financial Data
Full-Time Equivalent Employees

 

2,022

 

2,038

 

2,124

Branches

 

65

 

67

 

68

ATMs

 

357

 

358

 

387

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 December 31, 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

December 31,

September 30,

December 31,

(dollars in thousands)

 

2020

 

2020

 

2019

 
Total Shareholders' Equity

$

1,374,507

 

$

1,361,739

 

$

1,286,832

 

Less: Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

Tangible Common Equity

$

1,342,990

 

$

1,330,222

 

$

1,255,315

 

 
Total Assets

$

20,603,651

 

$

20,109,489

 

$

18,095,496

 

Less: Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

Tangible Assets

$

20,572,134

 

$

20,077,972

 

$

18,063,979

 

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

$

11,295,077

 

$

11,068,888

 

$

10,589,061

 

 
Total Shareholders' Equity to Total Assets

 

6.67

%

 

6.77

%

 

7.11

%

Tangible Common Equity to Tangible Assets (Non-GAAP)

 

6.53

%

 

6.63

%

 

6.95

%

 
Tier 1 Capital Ratio

 

12.06

%

 

12.09

%

 

12.18

%

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

 

11.89

%

 

12.02

%

 

11.85

%

 
Note: Risk-Weighted Assets and Regulatory capital ratios as of December 31, 2020 are preliminary.
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income Table 3

Three Months Ended

 

Year Ended

December 31,

September 30,

December 31,

 

December 31,

(dollars in thousands, except per share amounts)

 

2020

 

 

2020

 

 

2019

 

 

 

2020

 

2019

 

Interest Income
Interest and Fees on Loans and Leases

$

98,471

 

$

103,189

 

$

109,223

 

$

417,498

$

439,012

 

Income on Investment Securities
Available-for-Sale

 

15,449

 

 

14,558

 

 

16,158

 

 

61,294

 

62,174

 

Held-to-Maturity

 

14,113

 

 

15,967

 

 

18,750

 

 

66,055

 

81,616

 

Deposits

 

1

 

 

3

 

 

8

 

 

14

 

41

 

Funds Sold

 

115

 

 

149

 

 

723

 

 

902

 

3,553

 

Other

 

167

 

 

151

 

 

239

 

 

661

 

1,001

 

Total Interest Income

 

128,316

 

 

134,017

 

 

145,101

 

 

546,424

 

587,397

 

Interest Expense
Deposits

 

4,861

 

 

5,891

 

 

16,407

 

 

32,966

 

68,374

 

Securities Sold Under Agreements to Repurchase

 

3,614

 

 

3,622

 

 

4,071

 

 

15,281

 

17,522

 

Funds Purchased

 

5

 

 

-

 

 

25

 

 

95

 

840

 

Short-Term Borrowings

 

-

 

 

1

 

 

-

 

 

62

 

38

 

Other Debt

 

337

 

 

337

 

 

713

 

 

1,698

 

2,908

 

Total Interest Expense

 

8,817

 

 

9,851

 

 

21,216

 

 

50,102

 

89,682

 

Net Interest Income

 

119,499

 

 

124,166

 

 

123,885

 

 

496,322

 

497,715

 

Provision for Credit Losses

 

15,200

 

 

28,600

 

 

4,750

 

 

117,800

 

16,000

 

Net Interest Income After Provision for Credit Losses

 

104,299

 

 

95,566

 

 

119,135

 

 

378,522

 

481,715

 

Noninterest Income
Trust and Asset Management

 

11,239

 

 

10,752

 

 

11,157

 

 

43,456

 

44,233

 

Mortgage Banking

 

6,851

 

 

4,047

 

 

3,199

 

 

17,871

 

13,686

 

Service Charges on Deposit Accounts

 

6,335

 

 

6,027

 

 

7,835

 

 

24,910

 

30,074

 

Fees, Exchange, and Other Service Charges

 

12,143

 

 

12,296

 

 

14,533

 

 

47,056

 

57,893

 

Investment Securities Gains (Losses), Net

 

(1,193

)

 

(1,121

)

 

(906

)

 

9,932

 

(3,986

)

Annuity and Insurance

 

670

 

 

881

 

 

1,272

 

 

3,362

 

6,934

 

Bank-Owned Life Insurance

 

2,353

 

 

1,806

 

 

1,879

 

 

7,388

 

7,015

 

Other

 

6,860

 

 

7,046

 

 

8,733

 

 

30,434

 

27,489

 

Total Noninterest Income

 

45,258

 

 

41,734

 

 

47,702

 

 

184,409

 

183,338

 

Noninterest Expense
Salaries and Benefits

 

50,200

 

 

51,951

 

 

51,664

 

 

207,329

 

216,106

 

Net Occupancy

 

14,536

 

 

7,281

 

 

8,824

 

 

39,533

 

33,800

 

Net Equipment

 

9,574

 

 

9,223

 

 

7,930

 

 

35,448

 

29,295

 

Data Processing

 

4,604

 

 

4,691

 

 

4,828

 

 

18,499

 

18,757

 

Professional Fees

 

3,174

 

 

2,743

 

 

3,257

 

 

12,186

 

10,071

 

FDIC Insurance

 

1,484

 

 

1,282

 

 

1,376

 

 

5,780

 

5,192

 

Other

 

15,082

 

 

12,778

 

 

15,217

 

 

55,032

 

66,006

 

Total Noninterest Expense

 

98,654

 

 

89,949

 

 

93,096

 

 

373,807

 

379,227

 

Income Before Provision for Income Taxes

 

50,903

 

 

47,351

 

 

73,741

 

 

189,124

 

285,826

 

Provision for Income Taxes

 

8,589

 

 

9,511

 

 

15,598

 

 

35,320

 

59,913

 

Net Income

$

42,314

 

$

37,840

 

$

58,143

 

$

153,804

$

225,913

 

Basic Earnings Per Share

$

1.06

 

$

0.95

 

$

1.46

 

$

3.87

$

5.59

 

Diluted Earnings Per Share

$

1.06

 

$

0.95

 

$

1.45

 

$

3.86

$

5.56

 

Dividends Declared Per Share

$

0.67

 

$

0.67

 

$

0.67

 

$

2.68

$

2.59

 

Basic Weighted Average Shares

 

39,773,851

 

 

39,745,120

 

 

39,880,619

 

 

39,726,210

 

40,384,328

 

Diluted Weighted Average Shares

 

39,963,736

 

 

39,869,135

 

 

40,179,016

 

 

39,892,107

 

40,649,570

 

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income Table 4

Three Months Ended

 

Year Ended

December 31,

September 30,

December 31,

 

December 31,

(dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

 

2020

 

 

2019

 

Net Income

$

42,314

 

$

37,840

 

$

58,143

 

$

153,804

 

$

225,913

 

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

 

(961

)

 

(4,900

)

 

(5,856

)

 

43,428

 

 

22,677

 

Defined Benefit Plans

 

(5,616

)

 

374

 

 

(3,482

)

 

(4,494

)

 

(2,746

)

Other Comprehensive Income (Loss)

 

(6,577

)

 

(4,526

)

 

(9,338

)

 

38,934

 

 

19,931

 

Comprehensive Income

$

35,737

 

$

33,314

 

$

48,805

 

$

192,738

 

$

245,844

 

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

 

2020

 

 

2020

 

 

2019

 

Assets
Interest-Bearing Deposits in Other Banks

$

1,646

 

$

4,233

 

$

4,979

 

Funds Sold

 

333,022

 

 

736,524

 

 

254,574

 

Investment Securities
Available-for-Sale

 

3,791,689

 

 

3,190,313

 

 

2,619,003

 

Held-to-Maturity (Fair Value of $3,348,693; $3,288,668; and $3,062,882)

 

3,262,727

 

 

3,198,830

 

 

3,042,294

 

Loans Held for Sale

 

82,565

 

 

-

 

 

39,062

 

Loans and Leases

 

11,940,020

 

 

11,793,608

 

 

10,990,892

 

Allowance for Credit Losses

 

(216,252

)

 

(203,496

)

 

(110,027

)

Net Loans and Leases

 

11,723,768

 

 

11,590,112

 

 

10,880,865

 

Total Earning Assets

 

19,195,417

 

 

18,720,012

 

 

16,840,777

 

Cash and Due from Banks

 

279,420

 

 

260,167

 

 

299,105

 

Premises and Equipment, Net

 

199,695

 

 

199,021

 

 

188,388

 

Operating Lease Right-of-Use Assets

 

99,542

 

 

96,200

 

 

100,838

 

Accrued Interest Receivable

 

49,303

 

 

57,370

 

 

46,476

 

Foreclosed Real Estate

 

2,332

 

 

2,332

 

 

2,737

 

Mortgage Servicing Rights

 

19,652

 

 

21,887

 

 

25,022

 

Goodwill

 

31,517

 

 

31,517

 

 

31,517

 

Bank-Owned Life Insurance

 

291,480

 

 

291,231

 

 

287,962

 

Other Assets

 

435,293

 

 

429,752

 

 

272,674

 

Total Assets

$

20,603,651

 

$

20,109,489

 

$

18,095,496

 

 
Liabilities
Deposits
Noninterest-Bearing Demand

$

5,749,612

 

$

5,428,567

 

$

4,489,525

 

Interest-Bearing Demand

 

4,040,733

 

 

3,824,448

 

 

3,127,205

 

Savings

 

6,759,213

 

 

6,763,891

 

 

6,365,321

 

Time

 

1,662,063

 

 

1,721,977

 

 

1,802,431

 

Total Deposits

 

18,211,621

 

 

17,738,883

 

 

15,784,482

 

Securities Sold Under Agreements to Repurchase

 

600,590

 

 

602,106

 

 

604,306

 

Other Debt

 

60,481

 

 

60,502

 

 

85,565

 

Operating Lease Liabilities

 

107,412

 

 

103,869

 

 

108,210

 

Retirement Benefits Payable

 

51,197

 

 

43,505

 

 

44,504

 

Accrued Interest Payable

 

5,117

 

 

6,613

 

 

8,040

 

Taxes Payable and Deferred Taxes

 

2,463

 

 

12,124

 

 

16,085

 

Other Liabilities

 

190,263

 

 

180,148

 

 

157,472

 

Total Liabilities

 

19,229,144

 

 

18,747,750

 

 

16,808,664

 

Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2020 - 58,285,624 / 40,119,312;
September 30, 2020 - 58,248,690 / 40,060,675;
and December 31, 2019 - 58,166,910 / 40,039,695)

 

580

 

 

580

 

 

579

 

Capital Surplus

 

591,360

 

 

588,632

 

 

582,566

 

Accumulated Other Comprehensive Gain (Loss)

 

7,822

 

 

14,399

 

 

(31,112

)

Retained Earnings

 

1,811,979

 

 

1,797,763

 

 

1,761,415

 

Treasury Stock, at Cost (Shares: December 31, 2020 - 18,166,312;
September 30, 2020 - 18,188,015; and December 31, 2019 - 18,127,215)

 

(1,037,234

)

 

(1,039,635

)

 

(1,026,616

)

Total Shareholders' Equity

 

1,374,507

 

 

1,361,739

 

 

1,286,832

 

Total Liabilities and Shareholders' Equity

$

20,603,651

 

$

20,109,489

 

$

18,095,496

 

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, 2018

41,499,898

 

$

577

$

571,704

$

(51,043

)

$

1,641,314

 

$

(894,352

)

$

1,268,200

 

Net Income

-

 

 

-

 

-

 

-

 

 

225,913

 

 

-

 

 

225,913

 

Other Comprehensive Income

-

 

 

-

 

-

 

19,931

 

 

-

 

 

-

 

 

19,931

 

Share-Based Compensation

-

 

 

-

 

8,337

 

-

 

 

-

 

 

-

 

 

8,337

 

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

212,924

 

 

2

 

2,525

 

-

 

 

(334

)

 

5,385

 

 

7,578

 

Common Stock Repurchased

(1,673,127

)

 

-

 

-

 

-

 

 

-

 

 

(137,649

)

 

(137,649

)

Cash Dividends Declared ($2.59 per share)

-

 

 

-

 

-

 

-

 

 

(105,478

)

 

-

 

 

(105,478

)

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 and Related Tax Benefits

283,482

 

 

1

 

1,217

 

-

 

 

562

 

 

7,388

 

 

9,168

 

Common Stock Repurchased

(203,865

)

 

-

 

-

 

-

 

 

-

 

 

(18,006

)

 

(18,006

)

Cash Dividends Declared ($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

 

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

December 31, 2020

 

September 30, 2020

 

December 31, 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

$

2.2

$

-

0.16

%

$

2.6

$

-

0.45

%

$

3.4

$

-

0.90

%

Funds Sold

 

451.6

 

0.1

0.10

 

584.2

 

0.1

0.10

 

177.7

 

0.7

1.59

Investment Securities
Available-for-Sale
Taxable

 

3,605.8

 

15.3

1.69

 

2,918.6

 

14.3

1.96

 

2,578.3

 

15.9

2.46

Non-Taxable

 

20.2

 

0.2

4.33

 

25.8

 

0.3

4.22

 

33.4

 

0.4

4.35

Held-to-Maturity
Taxable

 

3,246.7

 

13.9

1.71

 

3,257.7

 

15.7

1.93

 

2,994.7

 

18.4

2.46

Non-Taxable

 

47.1

 

0.3

2.66

 

54.1

 

0.4

2.66

 

61.7

 

0.4

2.70

Total Investment Securities

 

6,919.8

 

29.7

1.71

 

6,256.2

 

30.7

1.96

 

5,668.1

 

35.1

2.47

Loans Held for Sale

 

15.1

 

0.1

2.98

 

15.9

 

0.1

3.24

 

31.0

 

0.3

3.67

Loans and Leases 1
Commercial and Industrial

 

1,897.4

 

14.0

2.95

 

1,917.0

 

14.1

2.93

 

1,356.1

 

13.3

3.90

Commercial Mortgage

 

2,768.0

 

21.7

3.12

 

2,722.3

 

21.7

3.18

 

2,479.7

 

25.5

4.08

Construction

 

257.4

 

2.3

3.62

 

234.0

 

2.1

3.60

 

179.1

 

2.1

4.73

Commercial Lease Financing

 

112.2

 

(2.5)

(9.07)

 

110.7

 

0.5

1.82

 

135.4

 

0.8

2.38

Residential Mortgage

 

4,089.7

 

36.4

3.57

 

3,988.7

 

36.7

3.68

 

3,850.4

 

36.7

3.81

Home Equity

 

1,600.9

 

13.2

3.28

 

1,625.2

 

14.1

3.45

 

1,683.4

 

15.7

3.70

Automobile

 

706.1

 

6.4

3.59

 

708.3

 

6.4

3.59

 

715.2

 

6.5

3.59

Other 2

 

404.2

 

7.0

6.85

 

433.6

 

7.6

6.96

 

479.4

 

8.5

7.02

Total Loans and Leases

 

11,835.9

 

98.5

3.32

 

11,739.8

 

103.2

3.50

 

10,878.7

 

109.1

3.99

Other

 

33.3

 

0.2

2.01

 

33.3

 

0.2

1.81

 

34.9

 

0.2

2.74

Total Earning Assets 3

 

19,257.9

 

128.6

2.66

 

18,632.0

 

134.3

2.88

 

16,793.8

 

145.4

3.45

Cash and Due from Banks

 

240.4

 

234.3

 

222.2

Other Assets

 

884.3

 

874.8

 

805.0

Total Assets

$

20,382.6

$

19,741.1

$

17,821.0

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

$

3,899.5

 

0.6

0.06

$

3,465.5

 

0.4

0.04

$

2,990.3

 

1.0

0.14

Savings

 

6,728.8

 

1.4

0.08

 

6,886.0

 

1.7

0.10

 

6,245.0

 

8.0

0.51

Time

 

1,696.0

 

2.9

0.68

 

1,568.3

 

3.8

0.97

 

1,842.3

 

7.4

1.59

Total Interest-Bearing Deposits

 

12,324.3

 

4.9

0.16

 

11,919.8

 

5.9

0.20

 

11,077.6

 

16.4

0.59

Short-Term Borrowings

 

19.2

 

-

0.10

 

-

 

-

-

 

5.8

 

-

1.66

Securities Sold Under Agreements to Repurchase

 

600.9

 

3.6

2.35

 

602.9

 

3.6

2.35

 

604.3

 

4.1

2.64

Other Debt

 

60.5

 

0.3

2.22

 

60.5

 

0.3

2.22

 

106.2

 

0.7

2.67

Total Interest-Bearing Liabilities

 

13,004.9

 

8.8

0.27

 

12,583.2

 

9.8

0.31

 

11,793.9

 

21.2

0.71

Net Interest Income

$

119.8

$

124.5

$

124.2

Interest Rate Spread

2.39

%

2.57

%

2.74

%

Net Interest Margin

2.48

%

2.67

%

2.95

%

Noninterest-Bearing Demand Deposits

 

5,494.8

 

5,350.4

 

4,363.5

Other Liabilities

 

509.9

 

439.7

 

370.7

Shareholders' Equity

 

1,373.0

 

1,367.8

 

1,292.9

Total Liabilities and Shareholders' Equity

$

20,382.6

$

19,741.1

$

17,821.0

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 $287,000, $295,000, and $352,000 for the three months ended December 31, 2020, September 30, 2020, and December 31, 2019, respectively.
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis Table 7b

Year Ended

 

Year Ended

December 31, 2020

 

December 31, 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

$

-

0.61

%

$

3.1

$

-

1.33

%

Funds Sold

 

434.1

 

0.9

0.21

 

165.7

 

3.6

2.14

Investment Securities
Available-for-Sale
Taxable

 

2,961.9

 

60.3

2.04

 

2,210.5

 

58.9

2.66

Non-Taxable

 

27.6

 

1.2

4.36

 

109.6

 

4.1

3.78

Held-to-Maturity
Taxable

 

3,125.2

 

65.0

2.08

 

3,148.2

 

78.3

2.49

Non-Taxable

 

52.6

 

1.4

2.66

 

137.8

 

4.2

3.04

Total Investment Securities

 

6,167.3

 

127.9

2.07

 

5,606.1

 

145.5

2.60

Loans Held for Sale

 

19.4

 

0.6

3.28

 

21.7

 

0.9

3.92

Loans and Leases 1
Commercial and Industrial

 

1,797.5

 

59.3

3.30

 

1,370.9

 

57.9

4.23

Commercial Mortgage

 

2,666.1

 

90.9

3.41

 

2,400.6

 

102.4

4.27

Construction

 

240.1

 

9.4

3.92

 

145.2

 

7.4

5.07

Commercial Lease Financing

 

111.3

 

(1.0)

(0.88)

 

154.4

 

3.7

2.43

Residential Mortgage

 

3,978.7

 

146.0

3.67

 

3,768.2

 

144.7

3.84

Home Equity

 

1,642.7

 

56.8

3.46

 

1,689.4

 

64.1

3.80

Automobile

 

709.1

 

25.3

3.57

 

694.9

 

25.1

3.62

Other 2

 

446.6

 

30.9

6.91

 

464.8

 

33.3

7.16

Total Loans and Leases

 

11,592.1

 

417.6

3.60

 

10,688.4

 

438.6

4.10

Other

 

33.7

 

0.7

1.96

 

35.1

 

1.0

2.85

Total Earning Assets 3

 

18,248.8

 

547.7

3.00

 

16,520.1

 

589.6

3.57

Cash and Due from Banks

 

263.8

 

234.0

Other Assets

 

875.1

 

783.5

Total Assets

$

19,387.7

$

17,537.6

 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand

$

3,426.8

 

2.5

0.07

$

2,945.9

 

5.0

0.17

Savings

 

6,702.7

 

12.4

0.19

 

6,034.0

 

32.4

0.54

Time

 

1,708.1

 

18.1

1.06

 

1,816.3

 

31.0

1.71

Total Interest-Bearing Deposits

 

11,837.6

 

33.0

0.28

 

10,796.2

 

68.4

0.63

Short-Term Borrowings

 

33.5

 

0.2

0.47

 

36.5

 

0.9

2.41

Securities Sold Under Agreements to Repurchase

 

602.7

 

15.2

2.54

 

531.9

 

17.5

3.29

Other Debt

 

62.1

 

1.7

2.73

 

111.8

 

2.9

2.60

Total Interest-Bearing Liabilities

 

12,535.9

 

50.1

0.40

 

11,476.4

 

89.7

0.78

Net Interest Income

$

497.6

$

499.9

Interest Rate Spread

2.60

%

2.79

%

Net Interest Margin

2.73

%

3.03

%

Noninterest-Bearing Demand Deposits

 

5,062.6

 

4,431.9

Other Liabilities

 

437.6

 

349.2

Shareholders' Equity

 

1,351.6

 

1,280.1

Total Liabilities and Shareholders' Equity

$

19,387.7

$

17,537.6

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 $1,297,000 and $2,230,000 for the year ended December 31, 2020 and December 31, 2019, respectively.
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8a

Three Months Ended December 31, 2020

Compared to September 30, 2020

(dollars in millions)

Volume 1

Rate 1

Total

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

$

3.2

 

$

(2.2

)

$

1.0

 

Non-Taxable

 

(0.1

)

 

-

 

 

(0.1

)

Held-to-Maturity
Taxable

 

(0.1

)

 

(1.7

)

 

(1.8

)

Non-Taxable

 

(0.1

)

 

-

 

 

(0.1

)

Total Investment Securities

 

2.9

 

 

(3.9

)

 

(1.0

)

Loans and Leases
Commercial and Industrial

 

(0.2

)

 

0.1

 

 

(0.1

)

Commercial Mortgage

 

0.4

 

 

(0.4

)

 

-

 

Construction

 

0.2

 

 

-

 

 

0.2

 

Commercial Lease Financing

 

-

 

 

(3.0

)

 

(3.0

)

Residential Mortgage

 

0.9

 

 

(1.2

)

 

(0.3

)

Home Equity

 

(0.2

)

 

(0.7

)

 

(0.9

)

Other 2

 

(0.5

)

 

(0.1

)

 

(0.6

)

Total Loans and Leases

 

0.6

 

 

(5.3

)

 

(4.7

)

Total Change in Interest Income

 

3.5

 

 

(9.2

)

 

(5.7

)

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

-

 

 

0.2

 

 

0.2

 

Savings

 

-

 

 

(0.3

)

 

(0.3

)

Time

 

0.3

 

 

(1.2

)

 

(0.9

)

Total Interest-Bearing Deposits

 

0.3

 

 

(1.3

)

 

(1.0

)

Total Change in Interest Expense

 

0.3

 

 

(1.3

)

 

(1.0

)

 
Change in Net Interest Income

$

3.2

 

$

(7.9

)

$

(4.7

)

1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8b

Three Months Ended December 31, 2020

Compared to December 31, 2019

(dollars in millions)

Volume 1

Rate 1

Total

Change in Interest Income:
Funds Sold

$

0.5

 

$

(1.1

)

$

(0.6

)

Investment Securities
Available-for-Sale
Taxable

 

5.2

 

 

(5.8

)

 

(0.6

)

Non-Taxable

 

(0.2

)

 

-

 

 

(0.2

)

Held-to-Maturity
Taxable

 

1.5

 

 

(6.0

)

 

(4.5

)

Non-Taxable

 

(0.1

)

 

-

 

 

(0.1

)

Total Investment Securities

 

6.4

 

 

(11.8

)

 

(5.4

)

Loans Held for Sale

 

(0.1

)

 

(0.1

)

 

(0.2

)

Loans and Leases
Commercial and Industrial

 

4.5

 

 

(3.8

)

 

0.7

 

Commercial Mortgage

 

2.7

 

 

(6.5

)

 

(3.8

)

Construction

 

0.8

 

 

(0.6

)

 

0.2

 

Commercial Lease Financing

 

(0.1

)

 

(3.2

)

 

(3.3

)

Residential Mortgage

 

2.2

 

 

(2.5

)

 

(0.3

)

Home Equity

 

(0.8

)

 

(1.7

)

 

(2.5

)

Automobile

 

(0.1

)

 

-

 

 

(0.1

)

Other 2

 

(1.3

)

 

(0.2

)

 

(1.5

)

Total Loans and Leases

 

7.9

 

 

(18.5

)

 

(10.6

)

Total Change in Interest Income

 

14.7

 

 

(31.5

)

 

(16.8

)

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

0.3

 

 

(0.7

)

 

(0.4

)

Savings

 

0.6

 

 

(7.2

)

 

(6.6

)

Time

 

(0.5

)

 

(4.0

)

 

(4.5

)

Total Interest-Bearing Deposits

 

0.4

 

 

(11.9

)

 

(11.5

)

Securities Sold Under Agreements to Repurchase

 

(0.1

)

 

(0.4

)

 

(0.5

)

Other Debt

 

(0.3

)

 

(0.1

)

 

(0.4

)

Total Change in Interest Expense

 

-

 

 

(12.4

)

 

(12.4

)

 
Change in Net Interest Income

$

14.7

 

$

(19.1

)

$

(4.4

)

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

Year Ended December 31, 2020

Compared to December 31, 2019

(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Funds Sold

$

2.4

 

$

(5.1

)

$

(2.7

)

Investment Securities
Available-for-Sale
Taxable

 

17.2

 

 

(15.8

)

 

1.4

 

Non-Taxable

 

(3.5

)

 

0.6

 

 

(2.9

)

Held-to-Maturity
Taxable

 

(0.6

)

 

(12.7

)

 

(13.3

)

Non-Taxable

 

(2.3

)

 

(0.5

)

 

(2.8

)

Total Investment Securities

 

10.8

 

 

(28.4

)

 

(17.6

)

Loans Held for Sale

 

(0.1

)

 

(0.2

)

 

(0.3

)

Loans and Leases
Commercial and Industrial

 

15.7

 

 

(14.3

)

 

1.4

 

Commercial Mortgage

 

10.5

 

 

(22.0

)

 

(11.5

)

Construction

 

4.0

 

 

(2.0

)

 

2.0

 

Commercial Lease Financing

 

(0.8

)

 

(3.9

)

 

(4.7

)

Residential Mortgage

 

7.9

 

 

(6.6

)

 

1.3

 

Home Equity

 

(1.7

)

 

(5.6

)

 

(7.3

)

Automobile

 

0.5

 

 

(0.3

)

 

0.2

 

Other 2

 

(1.3

)

 

(1.1

)

 

(2.4

)

Total Loans and Leases

 

34.8

 

 

(55.8

)

 

(21.0

)

Other

 

-

 

 

(0.3

)

 

(0.3

)

Total Change in Interest Income

 

47.9

 

 

(89.8

)

 

(41.9

)

 
Change in Interest Expense:
Interest-Bearing Deposits
Demand

 

0.7

 

 

(3.2

)

 

(2.5

)

Savings

 

3.3

 

 

(23.3

)

 

(20.0

)

Time

 

(1.7

)

 

(11.2

)

 

(12.9

)

Total Interest-Bearing Deposits

 

2.3

 

 

(37.7

)

 

(35.4

)

Short-Term Borrowings

 

(0.1

)

 

(0.6

)

 

(0.7

)

Securities Sold Under Agreements to Repurchase

 

2.1

 

 

(4.4

)

 

(2.3

)

Other Debt

 

(1.3

)

 

0.1

 

 

(1.2

)

Total Change in Interest Expense

 

3.0

 

 

(42.6

)

 

(39.6

)

 
Change in Net Interest Income

$

44.9

 

$

(47.2

)

$

(2.3

)

1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits Table 9

Three Months Ended

 

Year Ended

December 31,

September 30,

December 31,

 

December 31,

(dollars in thousands)

 

2020

 

 

2020

 

2019

 

 

2020

 

2019

Salaries

$

33,907

 

$

34,046

$

33,465

$

134,178

$

132,237

Incentive Compensation

 

3,084

 

 

2,683

 

4,864

 

9,153

 

21,913

Share-Based Compensation

 

2,029

 

 

1,442

 

1,475

 

6,783

 

8,573

Commission Expense

 

2,164

 

 

1,800

 

2,080

 

6,985

 

6,474

Retirement and Other Benefits

 

5,212

 

 

4,164

 

4,279

 

18,528

 

18,151

Payroll Taxes

 

2,292

 

 

2,624

 

2,386

 

12,241

 

11,795

Medical, Dental, and Life Insurance

 

1,523

 

 

3,422

 

2,903

 

12,917

 

15,202

Separation Expense

 

(11

)

 

1,770

 

212

 

6,544

 

1,761

Total Salaries and Benefits

$

50,200

 

$

51,951

$

51,664

$

207,329

$

216,106