Bank of Hawaii Corporation Third Quarter 2021 Financial Results - Form 8-K

•

Diluted Earnings Per Common Share $1.52

•

Net Income $62.1 Million

•

Board of Directors Declares Dividend of $0.70 Per Share

•

The return on average assets for the third quarter of 2021 was 1.07% compared with 1.23% in the previous quarter and 0.76% in the same quarter last year.

•

The return on average common equity for the third quarter of 2021 was 17.08% compared with 19.61% in the previous quarter and 11.01% in the same quarter last year.

•

Net interest income for the third quarter of 2021 was $126.8 million, an increase of 2.7% from the second quarter of 2021 and an increase of 2.1% from the third quarter of 2020. Net interest margin was 2.32% in the third quarter of 2021, a decrease of 5 basis points from the previous quarter and 35 basis points from the same quarter last year.

o

The decrease in the net interest margin from 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.

Bank of Hawaii Corporation Third Quarter 2021 Financial Results

Page 2

•

The provision for credit losses for the third quarter of 2021 was a net benefit of $10.4 million compared with a net benefit of $16.1 million in the previous quarter and net expense of $28.6 million in the same quarter last year.

•

Noninterest income was $41.4 million in the third quarter of 2021, a decrease of 6.9% from the second quarter of 2021 and a decrease of 0.9% from the third quarter of 2020.

o

One-time items in the second quarter of 2021 included a gain of $3.7 million related to the sale of investment securities.

•

Noninterest expense was $96.5 million in the third quarter of 2021, flat to the second quarter of 2021 and an increase of 7.3% from the third quarter of 2020.

o

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.

o

One-time significant items in the second quarter of 2021 included fees related to the early termination of FHLB advances and repurchase agreements of $3.2 million offset by a gain on the sale of property of $3.1 million.

o

One-time significant items in 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.

•

The efficiency ratio during the third quarter of 2021 was 57.38% compared with 57.47% in the previous quarter and 54.22% during the same quarter last year.

o

The increase in the efficiency ratio from prior year is driven by an increase in noninterest expense.

•

The effective tax rate for the third quarter of 2021 was 24.40% compared with 22.84% in the previous quarter and 20.09% during the same quarter last year.

o

The increase from same quarter prior year is primarily due to higher pretax book income compared to relatively stable tax adjustments and the delayed impact of the TCJA on the deductibility of deferred executive compensation.

•

Total non-performing assets were $20.6 million at September 30, 2021, up $1.6 million from June 30, 2021 and $2.0 million from September 30, 2020. Non-performing assets as percentage of total loans and leases and foreclosed real estate were 0.17% at the end of the quarter of 2021, up 1 basis point from the end of the prior quarter and the end of the same quarter last year.

•

Net loan and lease charge-offs during the third quarter of 2021 were $1.2 million or 0.04% annualized of total average loans and leases outstanding.

o

Net loan and lease charge-offs for the third quarter of 2021 were comprised of charge-offs of $3.4 million partially offset by recoveries of $2.3 million.

o

Compared to the prior quarter, net loan and lease charge-offs were flat.

o

Compared to the third quarter of 2020, net loan and lease charge-offs increased by $2.7 million or 9 basis points annualized on total average loans and leases outstanding.

Bank of Hawaii Corporation Third Quarter 2021 Financial Results

Page 3

•

The allowance for credit losses on loans and leases was $167.9 million at September 30, 2021, a decrease of $12.5 million from June 30, 2021 and $35.6 million from September 30, 2020. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.39% at the end of the quarter, down 11 basis points from the end of the prior quarter and 34 basis points from the end of the same quarter last year.

•

Total assets increased to a new record of $23.0 billion at September 30, 2021, an increase of 1.3% from June 30, 2021 and 14.2% from September 30, 2020.

•

The investment securities portfolio was $9.3 billion at September 30, 2021, up 9.2% from June 30, 2021 and 44.8% from September 30, 2020 due to growth in deposits that continued to outpace loan growth.

o

The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.

•

Total loans and leases were $12.1 billion at September 30, 2021, an increase of 0.3% from June 30, 2021 and 2.4% from September 30, 2020.

o

Total loans excluding PPP loans were $11.8 billion at September 30, 2021, an increase of 2.4% from June 30, 2021 and an increase of 4.8% from September 30, 2020.

•

Total deposits were $20.5 billion at September 30, 2021, an increase of 1.6% from June 30, 2021 and an increase of 15.5% from September 30, 2020.

•

The Company early terminated $100.0 million of repurchase agreements in the third quarter of 2021.

•

The Tier 1 Capital Ratio was 13.47% at September 30, 2021 compared with 13.87% at June 30, 2021 and 12.09% at September 30, 2020.

o

The increase from the same quarter in the prior year was driven by the issuance of preferred stock in the second quarter of 2021.

•

The Tier 1 Leverage Ratio was 7.10% at September 30, 2021 compared with 7.31% at June 30, 2021 and 6.81% at September 30, 2020.

o

The increase from the same quarter in the prior year 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 Company repurchased 241.3 thousand shares of common stock at a total cost of $20.0 million under its share repurchase program in the third quarter of 2021 at an average cost of $82.89 per share repurchased.

o

Total remaining buyback authority under the share repurchase program was $93.1 million at September 30, 2021.

Bank of Hawaii Corporation Third Quarter 2021 Financial Results

Page 4

•

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 December 14, 2021 to shareholders of record at the close of business on November 30, 2021.

•

On October 5, 2021, the Board of Directors declared the quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, on its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A. 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 November 1, 2021 to shareholders of record of the preferred stock at the close of business on October 18, 2021.

•

The webcast link is https://edge.media-server.com/mmc/p/3r3nw6ad

•

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, October 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 6897518 when prompted. In addition, the replay will be available on the Company's website, 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)

2021

2021

2020

2021

2020

For the Period:

Operating Results

Net Interest Income

$

126,819

$

123,514

$

124,166

$

370,902

$

376,823

Provision for Credit Losses ¹

(10,400

)

(16,100

)

28,600

(40,800

)

102,600

Total Noninterest Income

41,378

44,431

41,734

128,779

139,151

Total Noninterest Expense

96,519

96,527

89,949

291,911

275,153

Net Income

62,053

67,533

37,840

189,535

111,490

Basic Earnings Per Common Share

1.53

1.69

0.95

4.73

2.81

Diluted Earnings Per Common Share

1.52

1.68

0.95

4.70

2.80

Dividends Declared Per Common Share

0.70

0.67

0.67

2.04

2.01

Performance Ratios

Return on Average Assets

1.07

%

1.23

%

0.76

%

1.15

%

0.78

%

Return on Average Shareholders' Equity ⁸

15.41

19.17

11.01

17.31

11.08

Return on Average Common Equity

17.08

19.61

11.01

18.10

11.08

Efficiency Ratio ²

57.38

57.47

54.22

58.42

53.33

Net Interest Margin ³

2.32

2.37

2.67

2.37

2.82

Dividend Payout Ratio ⁴

45.75

39.64

70.53

43.13

71.53

Average Shareholders' Equity to Average Assets

6.95

6.40

6.93

6.63

7.06

Average Balances

Average Loans and Leases

$

11,958,321

$

12,096,308

$

11,739,785

$

12,002,426

$

11,510,222

Average Assets

22,993,036

22,073,569

19,741,139

22,079,174

19,053,626

Average Deposits

20,473,777

19,698,285

17,270,206

19,619,053

16,591,640

Average Shareholders' Equity

1,598,076

1,412,924

1,367,756

1,463,566

1,344,402

Per Share of Common Stock

Book Value

$

35.30

$

34.80

$

33.99

$

35.30

$

33.99

Tangible Book Value ⁸

34.38

33.91

33.21

34.38

33.21

Market Value

Closing

82.17

84.22

50.52

82.17

50.52

High

87.12

95.95

61.94

99.10

95.53

Low

75.68

81.23

48.77

75.65

46.70

September 30,

June 30,

March 31,

September 30,

2021

2021

2020

2020

As of Period End:

Balance Sheet Totals

Loans and Leases

$

12,072,750

$

12,041,378

$

11,940,020

$

11,793,608

Total Assets

22,965,383

22,672,183

20,603,651

20,109,489

Total Deposits

20,493,678

20,169,709

18,211,621

17,738,883

Other Debt

10,414

10,437

60,481

60,502

Total Shareholders' Equity

1,597,109

1,583,531

1,374,507

1,361,739

Asset Quality

Non-Performing Assets

$

20,620

$

18,974

$

18,481

$

18,626

Allowance for Credit Losses - Loans and Leases

167,920

180,385

216,252

203,496

Allowance to Loans and Leases Outstanding ⁵

1.39

%

1.50

%

1.81

%

1.73

%

Capital Ratios ⁶

Common Equity Tier 1 Capital Ratio

12.02

%

12.36

%

12.06

%

12.09

%

Tier 1 Capital Ratio

13.47

13.87

12.06

12.09

Total Capital Ratio

14.72

15.13

13.31

13.35

Tier 1 Leverage Ratio

7.10

7.31

6.71

6.81

Total Shareholders' Equity to Total Assets

6.95

6.98

6.67

6.77

Tangible Common Equity to Tangible Assets ^{7, 8}

6.04

6.06

6.53

6.63

Tangible Common Equity to Risk-Weighted Assets ^7,8

11.46

11.81

11.89

12.02

Non-Financial Data

Full-Time Equivalent Employees

2,049

2,085

2,022

2,038

Branches

54

54

65

67

ATMs

303

312

357

358

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 The numerator comprises the Allowance for Credit Losses - Loans and Leases.

⁶ Regulatory capital ratios as of September 30, 2021 are preliminary.

⁷ 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 and intangible assets. Intangible assets are included as a component of other assets in the Consolidated Statements of Condition.

See Table 2 "Reconciliation of Non-GAAP Financial Measures."

⁸ Return on Average Common Equity was revised from 19.60% for the three months ended June 30, 2021, Tangible Common Equity to Tangible Asset was revised from 6.08% for the

three months ended June 30, 2021, Tangible Common Equity to Risk-Weighted Assets was revised from 11.85% for the three months ended June30, 2021, and Tangible Book Value

was revised from $34.02 for the three months ended June30, 2021.

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)

2021

2021

2020

2020

Total Shareholders' Equity

$

1,597,109

$

1,583,531

$

1,374,507

$

1,361,739

Less: Preferred Stock

180,000

180,000

-

-

Goodwill

31,517

31,517

31,517

31,517

Tangible Common Equity

$

1,385,592

$

1,372,014

$

1,342,990

$

1,330,222

Total Assets

$

22,965,383

$

22,672,183

$

20,603,651

$

20,109,489

Less: Goodwill

31,517

31,517

31,517

31,517

Tangible Assets

$

22,933,866

$

22,640,666

$

20,572,134

$

20,077,972

Risk-Weighted Assets, determined in accordance

with prescribed regulatory requirements

$

12,093,010

$

11,614,522

$

11,295,077

$

11,068,888

Total Shareholders' Equity to Total Assets

6.95

%

6.98

%

6.67

%

6.77

%

Tangible Common Equity to Tangible Assets (Non-GAAP)

6.04

%

6.06

%

6.53

%

6.63

%

Tier 1 Capital Ratio

13.47

%

13.87

%

12.06

%

12.09

%

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

11.46

%

11.81

%

11.89

%

12.02

%

Note: Risk-Weighted Assets and regulatory capital ratios as of September 30, 2021 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)

2021

2021

2020

2021

2020

Interest Income

Interest and Fees on Loans and Leases

$

100,570

$

100,894

$

103,189

$

300,763

$

319,027

Income on Investment Securities

Available-for-Sale

16,396

16,467

14,558

48,700

45,845

Held-to-Maturity

16,754

13,576

15,967

43,630

51,942

Deposits

2

-

3

9

13

Funds Sold

382

260

149

779

787

Other

159

182

151

526

494

Total Interest Income

134,263

131,379

134,017

394,407

418,108

Interest Expense

Deposits

3,837

4,152

5,891

12,318

28,105

Securities Sold Under Agreements to Repurchase

3,423

3,470

3,622

10,426

11,667

Funds Purchased

-

-

-

1

90

Short-Term Borrowings

-

-

1

-

62

Other Debt

184

243

337

760

1,361

Total Interest Expense

7,444

7,865

9,851

23,505

41,285

Net Interest Income

126,819

123,514

124,166

370,902

376,823

Provision for Credit Losses

(10,400

)

(16,100

)

28,600

(40,800

)

102,600

Net Interest Income After Provision for Credit Losses

137,219

139,614

95,566

411,702

274,223

Noninterest Income

Trust and Asset Management

11,415

11,682

10,752

34,375

32,217

Mortgage Banking

3,136

3,058

4,047

12,056

11,020

Service Charges on Deposit Accounts

6,510

6,065

6,027

18,703

18,575

Fees, Exchange, and Other Service Charges

13,604

13,807

12,296

41,018

34,913

Investment Securities Gains (Losses), Net

(1,259

)

2,423

(1,121

)

(39

)

11,125

Annuity and Insurance

735

911

881

2,348

2,692

Bank-Owned Life Insurance

1,897

2,063

1,806

5,877

5,035

Other

5,340

4,422

7,046

14,441

23,574

Total Noninterest Income

41,378

44,431

41,734

128,779

139,151

Noninterest Expense

Salaries and Benefits

56,447

56,161

51,951

168,859

157,129

Net Occupancy

3,079

5,047

7,281

17,216

24,997

Net Equipment

8,924

8,796

9,223

26,598

25,874

Data Processing

4,722

4,557

4,691

15,601

13,895

Professional Fees

2,948

3,114

2,743

9,468

9,012

FDIC Insurance

1,594

1,669

1,282

4,917

4,296

Other

18,805

17,183

12,778

49,252

39,950

Total Noninterest Expense

96,519

96,527

89,949

291,911

275,153

Income Before Provision for Income Taxes

82,078

87,518

47,351

248,570

138,221

Provision for Income Taxes

20,025

19,985

9,511

59,035

26,731

Net Income

$

62,053

$

67,533

$

37,840

$

189,535

$

111,490

Preferred Stock Dividends

1,006

-

-

1,006

-

Net Income Available to Common Shareholders

$

61,047

$

67,533

$

37,840

$

188,529

$

111,490

Basic Earnings Per Common Share

$

1.53

$

1.69

$

0.95

$

4.73

$

2.81

Diluted Earnings Per Common Share

$

1.52

$

1.68

$

0.95

$

4.70

$

2.80

Dividends Declared Per Common Share

$

0.70

$

0.67

$

0.67

$

2.04

$

2.01

Basic Weighted Average Common Shares

39,881,437

39,902,583

39,745,120

39,870,450

39,710,252

Diluted Weighted Average Common Shares

40,080,919

40,122,905

39,869,135

40,088,899

39,872,406

Bank of Hawaii Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

Table 4

Three Months Ended

Year Ended

September 30,

June 30,

September 30,

September 30,

(dollars in thousands)

2021

2021

2020

2021

2020

Net Income

$

62,053

$

67,533

$

37,840

$

189,535

$

111,490

Other Comprehensive Income (Loss), Net of Tax:

Net Unrealized Gains (Losses) on Investment Securities

(7,541

)

(123

)

(4,900

)

(57,714

)

44,389

Defined Benefit Plans

441

442

374

1,324

1,122

Other Comprehensive Income (Loss)

(7,100

)

319

(4,526

)

(56,390

)

45,511

Comprehensive Income

$

54,953

$

67,852

$

33,314

$

133,145

$

157,001

Bank of Hawaii Corporation and Subsidiaries

Consolidated Statements of Condition

Table 5

September 30,

June 30,

December 31,

September 30,

(dollars in thousands)

2021

2021

2020

2020

Assets

Interest-Bearing Deposits in Other Banks

$

2,188

$

2,584

$

1,646

$

4,233

Funds Sold

422,063

909,730

333,022

736,524

Investment Securities

Available-for-Sale

4,353,520

4,522,941

3,791,689

3,190,313

Held-to-Maturity (Fair Value of $4,895,763; $3,965,117; $3,348,693; and $3,288,668)

4,899,880

3,947,613

3,262,727

3,198,830

Loans Held for Sale

21,965

47,490

82,565

-

Loans and Leases

12,072,750

12,041,378

11,940,020

11,793,608

Allowance for Credit Losses

(167,920

)

(180,385

)

(216,252

)

(203,496

)

Net Loans and Leases

11,904,830

11,860,993

11,723,768

11,590,112

Total Earning Assets

21,604,446

21,291,351

19,195,417

18,720,012

Cash and Due from Banks

231,711

269,153

279,420

260,167

Premises and Equipment, Net

199,144

198,508

199,695

199,021

Operating Lease Right-of-Use Assets

97,007

97,264

99,542

96,200

Accrued Interest Receivable

46,751

47,046

49,303

57,370

Foreclosed Real Estate

2,332

2,332

2,332

2,332

Mortgage Servicing Rights

22,099

21,473

19,652

21,887

Goodwill

31,517

31,517

31,517

31,517

Bank-Owned Life Insurance

293,230

292,805

291,480

291,231

Other Assets

437,146

420,734

435,293

429,752

Total Assets

$

22,965,383

$

22,672,183

$

20,603,651

$

20,109,489

Liabilities

Deposits

Noninterest-Bearing Demand

$

7,111,693

$

6,570,232

$

5,749,612

$

5,428,567

Interest-Bearing Demand

4,768,725

4,498,825

4,040,733

3,824,448

Savings

7,540,345

7,704,575

6,759,213

6,763,891

Time

1,072,915

1,396,077

1,662,063

1,721,977

Total Deposits

20,493,678

20,169,709

18,211,621

17,738,883

Securities Sold Under Agreements to Repurchase

450,490

550,490

600,590

602,106

Other Debt

10,414

10,437

60,481

60,502

Operating Lease Liabilities

104,452

105,380

107,412

103,869

Retirement Benefits Payable

49,802

50,260

51,197

43,505

Accrued Interest Payable

3,415

3,879

5,117

6,613

Taxes Payable and Deferred Taxes

9,815

11,844

2,463

12,124

Other Liabilities

246,208

186,653

190,263

180,148

Total Liabilities

21,368,274

21,088,652

19,229,144

18,747,750

Shareholders' Equity

Preferred Stock ($.01 par value; authorized 180,000 shares;

issued and outstanding: September 30, 2021 and June 30, 2021 - 180,000 shares)

180,000

180,000

-

-

Common Stock ($.01 par value; authorized 500,000,000 shares;

issued / outstanding: September 30, 2021 - 58,559,089 / 40,305,801;

June 30, 2021 - 58,557,754 / 40,465,482; December 31, 2020 - 58,285,624 / 40,119,312;

and September 30, 2020 - 58,248,690 / 40,060,675)

580

580

580

580

Capital Surplus

598,341

594,261

591,360

588,632

Accumulated Other Comprehensive Income (Loss)

(48,568

)

(41,468

)

7,822

14,399

Retained Earnings

1,916,861

1,884,431

1,811,979

1,797,763

Treasury Stock, at Cost (Shares: September 30, 2021 - 18,253,288; June 30, 2021 - 18,092,272;

December 31, 2020 - 18,166,312; and September 30, 2020 - 18,188,015)

(1,050,105

)

(1,034,273

)

(1,037,234

)

(1,039,635

)

Total Shareholders' Equity

1,597,109

1,583,531

1,374,507

1,361,739

Total Liabilities and Shareholders' Equity

$

22,965,383

$

22,672,183

$

20,603,651

$

20,109,489

Bank of Hawaii Corporation and Subsidiaries

Consolidated Statements of Shareholders' Equity

Table 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, 2020

-

$

-

40,119,312

$

580

$

591,360

$

7,822

$

1,811,979

$

(1,037,234

)

$

1,374,507

Net Income

-

-

-

-

-

-

189,535

-

189,535

Other Comprehensive Loss

-

-

-

-

-

(56,390

)

-

-

(56,390

)

Share-Based Compensation

-

-

-

-

9,658

-

-

-

9,658

Preferred Stock Issued, Net

180,000

180,000

-

-

(4,513

)

-

-

-

175,487

Common Stock Issued under Purchase

and Equity Compensation Plans

-

-

466,265

-

1,836

-

(1,218

)

10,541

11,159

Common Stock Repurchased

-

-

(279,776

)

-

-

-

-

(23,412

)

(23,412

)

Cash Dividends Declared Common Stock ($2.04 per share)

-

-

-

-

-

-

(82,429

)

-

(82,429

)

Cash Dividends Declared Preferred Stock

-

-

-

-

-

-

(1,006

)

-

(1,006

)

Balance as of September 30, 2021

180,000

$

180,000

40,305,801

$

580

$

598,341

$

(48,568

)

$

1,916,861

$

(1,050,105

)

$

1,597,109

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 Common Stock ($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

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, 2021

June 30, 2021

September 30, 2020

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

$

3.2

$

-

0.23

%

$

2.2

$

-

0.04

%

$

2.6

$

-

0.45

%

Funds Sold

999.5

0.4

0.15

946.2

0.3

0.11

584.2

0.1

0.10

Investment Securities

Available-for-Sale

Taxable

4,454.9

16.3

1.46

4,290.8

16.3

1.53

2,918.6

14.3

1.96

Non-Taxable

10.1

0.1

4.34

12.3

0.1

4.27

25.8

0.3

4.22

Held-to-Maturity

Taxable

4,294.6

16.5

1.53

3,496.2

13.4

1.53

3,257.7

15.7

1.93

Non-Taxable

64.8

0.4

2.37

41.5

0.3

2.53

54.1

0.4

2.66

Total Investment Securities

8,824.4

33.3

1.51

7,840.8

30.1

1.54

6,256.2

30.7

1.96

Loans Held for Sale

24.6

0.2

2.80

25.7

0.2

2.86

15.9

0.1

3.24

Loans and Leases ¹

Commercial and Industrial

1,644.8

17.0

4.09

1,934.5

16.8

3.49

1,917.0

14.1

2.93

Commercial Mortgage

2,952.7

21.9

2.94

2,883.5

21.3

2.96

2,722.3

21.7

3.18

Construction

289.9

2.5

3.38

285.6

2.6

3.66

234.0

2.1

3.60

Commercial Lease Financing

109.3

0.4

1.58

105.7

0.4

1.54

110.7

0.5

1.82

Residential Mortgage

4,253.2

34.8