Bank of Hawaii Corporation (NYSE:BOH) today reported diluted earnings per share of $1.16 for the first quarter of 2016, up from $0.99 in the previous quarter, and up from $0.97 in the same quarter last year. Net income for the first quarter of 2016 was $50.2 million, an increase of $7.4 million compared with net income of $42.8 million in the fourth quarter of 2015, and up $7.8 million from net income of $42.4 million in the first quarter of 2015.

The Company’s Board of Directors declared a quarterly cash dividend of $0.48 per share on the outstanding shares, an increase of $0.03 per share from the $0.45 per share dividend declared in the prior quarter. The dividend will be payable on June 14, 2016 to shareholders of record at the close of business on May 31, 2016.

Loan and lease balances increased to $8.1 billion at March 31, 2016, up 2.4 percent from December 31, 2015 and 12.4 percent compared with March 31, 2015. Deposit growth remained strong during the quarter, increasing 1.8 percent from December 31, 2015 and 3.9 percent from March 31, 2015.

“Bank of Hawaii Corporation had good financial performance in the first quarter and a great start for the year,” said Peter S. Ho, Chairman, President, and CEO. “Balance sheet growth remains strong and we maintained our disciplined approach to risk and capital management. During the quarter we sold $11.2 million in Visa shares and made progress on our many strategic initiatives.”

The return on average assets for the first quarter of 2016 was 1.30 percent, an increase from 1.11 percent during the previous quarter and 1.15 percent in the same quarter last year. The return on average equity for the first quarter of 2016 was 17.88 percent, up from 15.41 percent in the fourth quarter of 2015 and 16.18 percent in the first quarter of 2015. The efficiency ratio during the first quarter of 2016 was 54.88 percent compared with 58.55 percent in the previous quarter and 58.30 percent in the same quarter last year.

Financial Highlights

Net interest income, on a taxable-equivalent basis, for the first quarter of 2016 was $106.0 million, up $1.3 million from net interest income of $104.7 million in the fourth quarter of 2015 and up $6.4 million from net interest income of $99.6 million in the first quarter of 2015. Net interest income in the first quarter of 2016 included interest recoveries of $1.3 million related to one commercial client in Guam. The net interest margin was 2.86 percent for the first quarter of 2016, up 1 basis point compared with the previous quarter and up 5 basis points from the first quarter last year primarily due to the interest recoveries. Analyses of the changes in net interest income are included in Tables 8a and 8b.

Results for the first quarter of 2016 included a negative provision for credit losses of $2.0 million largely due to the full recovery of loans previously charged off relating to the previously mentioned commercial client. Results for the fourth quarter of 2015 included a provision for credit losses of $1.0 million due to strong growth of loans and leases during the year partially offset by improved credit metrics. There was no provision for credit losses during the first quarter of 2015.

Noninterest income was $56.2 million in the first quarter of 2016, an increase of $11.4 million compared with noninterest income of $44.8 million in the fourth quarter of 2015 and an increase of $3.9 million compared with noninterest income of $52.3 million in the first quarter of 2015. Noninterest income in the first quarter of 2016 included a net gain of $11.2 million resulting from the sale of 100,000 Visa Class B shares and net gains of $1.9 million related to sales of leased assets. Noninterest income in the fourth quarter of 2015 included a gain of $1.0 million due to a distribution from a low-income housing partnership. Noninterest income in the first quarter of 2015 included a net gain of $10.1 million resulting from the sale of 95,000 Visa Class B shares. As of March 31, 2016, the Company has 188,714 Visa Class B shares remaining.

Noninterest expense was $87.4 million in the first quarter of 2016, up $1.7 million from noninterest expense of $85.7 million in the fourth quarter of 2015 and up $0.5 million from noninterest expense of $86.9 million in the same quarter last year. Noninterest expense in the first quarter of 2016 included seasonal payroll-related expenses of approximately $2.5 million, higher incentive compensation, an increase of $0.5 million to the provision for unfunded commitments, and increased investments in solar tax credit partnerships. Partially offsetting the first quarter expenses was a net gain of $1.5 million for the sale of a real estate property in Guam. Noninterest expense in the fourth quarter of 2015 included net gains of $3.9 million related to the disposal of two branches which were partially offset by expenses of $1.3 million for the roll-out of chip-enabled debit cards, operating losses of $1.1 million, and severance expenses of $0.5 million. Noninterest expense in the first quarter of 2015 included seasonal payroll-related expenses of approximately $2.5 million, $1.9 million in severance payments and increased costs related to technology investments. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the first quarter of 2016 was 32.01 percent compared with 28.23 percent in the previous quarter and 31.72 percent during the same quarter last year. The lower effective tax rate during the fourth quarter of 2015 was due to the release of a valuation allowance related to the sale of a low-income housing investment.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services, 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 for the business segments is included in Table 13.

Asset Quality

The Company’s asset quality remained strong during the first quarter of 2016. Total non-performing assets decreased to $22.0 million at March 31, 2016, down from non-performing assets of $28.8 million at December 31, 2015 and March 31, 2015. The decrease in non-performing assets was largely due to the previously mentioned commercial loan recoveries in Guam. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.27 percent at the end of the first quarter of 2016, down from 0.37 percent at the end of the fourth quarter of 2015 and 0.40 percent at the end of the first quarter last year.

Accruing loans and leases past due 90 days or more were $7.9 million at March 31, 2016, compared with $7.6 million at December 31, 2015 and $8.0 million at March 31, 2015. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $50.7 million at March 31, 2016, up from $49.4 million at December 31, 2015 and $46.6 million at March 31, 2015. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

The Company recorded a net recovery of loans and leases previously charged off of $3.8 million during the first quarter of 2016 as charge-offs of $4.9 million were more than offset by recoveries of $8.7 million. Net charge-offs in the fourth quarter of 2015 were $2.2 million or 0.11 percent annualized of total average loans and leases outstanding and comprised of $4.5 million in charge-offs partially offset by recoveries of $2.3 million. Net charge-offs during the first quarter of 2015 were $1.2 million, or 0.07 percent annualized of total average loans and leases outstanding, and comprised of $4.1 million in charge-offs partially offset by recoveries of $2.9 million.

The allowance for loan and lease losses was $104.7 million at March 31, 2016, an increase from $102.9 million at December 31, 2015 and down from $107.5 million at March 31, 2015. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.30 percent at March 31, 2016 compared with 1.31 percent at December 31, 2015 and 1.50 percent at March 31, 2015. The reserve for unfunded commitments increased to $6.6 million at March 31, 2016 compared with $6.1 million at December 31, 2015 and $5.9 million at March 31, 2015. 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 were $15.65 billion at March 31, 2016, up from $15.46 billion at December 31, 2015 and $15.14 billion at March 31, 2015. Average total assets were $15.54 billion during the first quarter of 2016, an increase from average total assets of $15.34 billion during the previous quarter and $14.95 billion during the same quarter last year.

The investment securities portfolio decreased to $6.21 billion at March 31, 2016 compared with $6.24 billion at December 31, 2015 and $6.58 billion at March 31, 2015. The portfolio at March 31, 2016 remains largely comprised of securities issued by U. S. government agencies and includes $3.91 billion in securities held to maturity and $2.29 billion in securities available for sale.

Total loans and leases were $8.07 billion at March 31, 2016, up from $7.88 billion at December 31, 2015 and $7.18 billion at March 31, 2015. Average total loans and leases were $7.94 billion during the first quarter of 2016, up from $7.79 billion during the fourth quarter of 2015 and $7.05 billion during the same quarter last year.

The commercial loan portfolio was $3.26 billion at the end of the first quarter of 2016, an increase of 3.2 percent from commercial loans of $3.15 billion at the end of the fourth quarter of 2015 and up 10.2 percent from commercial loans of $2.96 billion at the end of the same quarter last year. The consumer loan portfolio increased to $4.81 billion at the end of the first quarter of 2016, up 1.8 percent from consumer loans of $4.73 billion at the end of the fourth quarter of 2015 and up 13.9 percent from $4.22 billion at the end of the same quarter last year. Loan and lease portfolio balances are summarized in Table 10.

Total deposits increased to $13.49 billion at March 31, 2016 compared with $13.25 billion at December 31, 2015 and $12.98 billion at March 31, 2015. Average total deposits were $13.33 billion during the first quarter of 2016, up from $13.04 billion during the previous quarter and $12.79 billion during the same quarter last year.

Consumer deposits increased to $6.57 billion at the end of the first quarter of 2016, up 1.9 percent from the previous quarter and up 5.6 percent compared with the first quarter last year. Commercial deposits increased to $5.68 billion at the end of the first quarter of 2016, up 3.2 percent from the previous quarter and up 4.3 percent compared with the first quarter last year. Other deposits, including public funds, were $1.24 billion at the end of the first quarter, a decrease of 4.7 percent from the previous quarter and down 5.6 percent compared with the same quarter last year. Deposit balances are summarized in Tables 7 and 10.

Total shareholders’ equity increased to $1.14 billion at March 31, 2016 compared with $1.12 billion at December 31, 2015 and $1.08 billion at March 31, 2015. The Tier 1 Capital Ratio was 13.85 percent at March 31, 2016 compared with 13.97 percent at December 31, 2015 and 14.62 percent at March 31, 2015. The Tier 1 Leverage Ratio at March 31, 2016 was 7.25 percent compared with 7.26 percent at December 31, 2015 and 7.17 percent at March 31, 2015.

During the first quarter of 2016, the Company repurchased 297.0 thousand shares of common stock at a total cost of $18.7 million under its share repurchase program. The average cost was $62.92 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through March 31, 2016, the Company has repurchased 53.1 million shares and returned nearly $2.0 billion to shareholders at an average cost of $37.50 per share.

The Company’s Board of Directors increased the authorization under the share repurchase program by an additional $100.0 million. This authorization, combined with previously announced authorizations of $2.0 billion, brings the total repurchase authority to $2.1 billion. From April 1 through April 22, 2016 the Company repurchased an additional 51.0 thousand shares of common stock at an average cost of $67.56 per share. Remaining buyback authority under the share repurchase program was $100.9 million at April 22, 2016.

Hawaii Economy

General economic conditions in Hawaii remained positive during the first quarter of 2016 due to a continuation of the strong tourism market, active construction industry, relatively low unemployment levels, and robust real estate market. For the first two months of 2016, total visitor arrivals increased 5.2 percent and visitor spending increased 3.8 percent compared to the same period in 2015. The statewide seasonally-adjusted unemployment rate was 3.1 percent in March 2016 compared to 5.0 percent nationally.

For the first quarter of 2016, the volume of single-family home sales on Oahu increased 17.4 percent and the volume of condominium sales on Oahu increased 17.8 percent compared with the same period last year. During the first quarter of 2016, the median sales price of a single-family home on Oahu increased 7.2 percent and the median sales price of a condominium on Oahu increased 4.5 percent compared with the same period last year. As of March 31, 2016, months of inventory of single-family homes and condominiums on Oahu remained extremely low at 2.1 months and 2.3 months, respectively. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its first quarter financial results today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time). The conference call will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation’s web site, www.boh.com. The toll-free number is 1 (877) 783-7534 in the United States and 1 (530) 379-4714 for 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, April 25, 2016. The replay number is 1 (855) 859-2056 in the United States and 1 (404) 537-3406 from international locations. Enter the pass code 83894304 when prompted. Participants can also dial 1 (800) 585-8367 to access the replay. In addition, a replay of the conference call will be available via the Investor Relations link 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, 2015, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.

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

 
Bank of Hawaii Corporation and Subsidiaries        
Financial Highlights                 Table 1
Three Months Ended
March 31, December 31, March 31,
(dollars in thousands, except per share amounts)     2016     2015     2015

For the Period:

Operating Results
Net Interest Income $ 103,024 $ 101,644 $ 96,770
Provision for Credit Losses (2,000 ) 1,000 -
Total Noninterest Income 56,207 44,766 52,307
Total Noninterest Expense 87,386 85,727 86,915
Net Income 50,210 42,832 42,442
Basic Earnings Per Share 1.17 1.00 0.98
Diluted Earnings Per Share 1.16 0.99 0.97
Dividends Declared Per Share 0.45 0.45 0.45
 
Performance Ratios
Return on Average Assets 1.30 % 1.11 % 1.15 %
Return on Average Shareholders' Equity 17.88 15.41 16.18
Efficiency Ratio 1 54.88 58.55 58.30
Net Interest Margin 2 2.86 2.85 2.81
Dividend Payout Ratio 3 38.46 45.00 45.92
Average Shareholders' Equity to Average Assets 7.27 7.19 7.12
 
Average Balances
Average Loans and Leases $ 7,940,097 $ 7,785,346 $ 7,053,061
Average Assets 15,537,073 15,335,574 14,946,037
Average Deposits 13,334,550 13,038,637 12,786,449
Average Shareholders' Equity 1,129,561 1,102,548 1,064,112
 
Per Share of Common Stock
Book Value $ 26.43 $ 25.79 $ 24.63
Tangible Book Value 25.70 25.06 23.91
Market Value
Closing 68.28 62.90 61.21
High 69.37 70.07 62.58
Low 54.55 60.55 53.90
 
March 31, December 31, March 31,
      2016     2015     2015

As of Period End:

Balance Sheet Totals
Loans and Leases $ 8,065,610 $ 7,878,985 $ 7,178,628
Total Assets 15,654,695 15,455,016 15,139,179
Total Deposits 13,488,892 13,251,103 12,979,616
Other Debt 220,771 245,786 173,898
Total Shareholders' Equity 1,138,753 1,116,260 1,075,251
 
Asset Quality
Non-Performing Assets $ 22,015 $ 28,801 $ 28,777
Allowance for Loan and Lease Losses 104,677 102,880 107,461
Allowance to Loans and Leases Outstanding 1.30 % 1.31 % 1.50 %
 
Capital Ratios
Common Equity Tier 1 Capital Ratio 13.85 % 13.97 % 14.62 %
Tier 1 Capital Ratio 13.85 13.97 14.62
Total Capital Ratio 15.10 15.22 15.87
Tier 1 Leverage Ratio 7.25 7.26 7.17
Total Shareholders' Equity to Total Assets 7.27 7.22 7.10
Tangible Common Equity to Tangible Assets 4 7.09 7.03 6.91
Tangible Common Equity to Risk-Weighted Assets 4 13.62 13.62 14.27
 
Non-Financial Data
Full-Time Equivalent Employees 2,139 2,164 2,156
Branches 70 70 74
ATMs 452 456 456
 

1

  

Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).

2

Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.

3

Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.

4

Tangible common equity 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
March 31, December 31, March 31,
(dollars in thousands)     2016     2015     2015
 
Total Shareholders' Equity $ 1,138,753 $ 1,116,260 $ 1,075,251

Less: Goodwill

      31,517         31,517         31,517  
Tangible Common Equity     $ 1,107,236       $ 1,084,743       $ 1,043,734  
 
Total Assets $ 15,654,695 $ 15,455,016 $ 15,139,179

Less: Goodwill

      31,517         31,517         31,517  
Tangible Assets     $ 15,623,178       $ 15,423,499       $ 15,107,662  
 

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

$ 8,130,093 $ 7,962,484 $ 7,313,682
 
Total Shareholders' Equity to Total Assets 7.27 % 7.22 % 7.10 %
Tangible Common Equity to Tangible Assets (Non-GAAP) 7.09 % 7.03 % 6.91 %
 
Tier 1 Capital Ratio 13.85 % 13.97 % 14.62 %
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 13.62 % 13.62 % 14.27 %
 
 
Bank of Hawaii Corporation and Subsidiaries            
Consolidated Statements of Income                 Table 3
Three Months Ended
March 31, December 31, March 31,
(dollars in thousands, except per share amounts)     2016     2015     2015
Interest Income
Interest and Fees on Loans and Leases $ 80,895 $ 78,122 $ 70,961
Income on Investment Securities
Available-for-Sale 10,814 10,829 10,198
Held-to-Maturity 20,391 21,722 24,407
Deposits 4 1 3
Funds Sold 753 315 259
Other       212         381         302
Total Interest Income       113,069         111,370         106,130
Interest Expense
Deposits 2,886 2,443 2,368
Securities Sold Under Agreements to Repurchase 6,153 6,246 6,371
Funds Purchased 3 3 3
Other Debt       1,003         1,034         618
Total Interest Expense       10,045         9,726         9,360
Net Interest Income 103,024 101,644 96,770
Provision for Credit Losses       (2,000 )       1,000         -
Net Interest Income After Provision for Credit Losses       105,024         100,644         96,770
Noninterest Income
Trust and Asset Management 11,256 11,243 12,180
Mortgage Banking 3,189 3,130 1,693
Service Charges on Deposit Accounts 8,443 8,663 8,537
Fees, Exchange, and Other Service Charges 13,444 13,764 12,897
Investment Securities Gains, Net 11,180 (181 ) 10,231
Annuity and Insurance 1,901 2,014 2,044
Bank-Owned Life Insurance 1,548 1,608 1,734
Other       5,246         4,525         2,991
Total Noninterest Income       56,207         44,766         52,307
Noninterest Expense
Salaries and Benefits 50,514 47,997 49,780
Net Occupancy 7,003 4,876 9,333
Net Equipment 5,409 5,244 5,288
Data Processing 3,951 5,106 3,773
Professional Fees 2,639 2,803 2,334
FDIC Insurance 2,352 2,322 2,140
Other       15,518         17,379         14,267
Total Noninterest Expense       87,386         85,727         86,915
Income Before Provision for Income Taxes 73,845 59,683 62,162
Provision for Income Taxes       23,635         16,851         19,720
Net Income     $ 50,210       $ 42,832       $ 42,442
Basic Earnings Per Share $ 1.17 $ 1.00 $ 0.98
Diluted Earnings Per Share $ 1.16 $ 0.99 $ 0.97
Dividends Declared Per Share $ 0.45 $ 0.45 $ 0.45
Basic Weighted Average Shares 42,920,794 43,003,191 43,386,402
Diluted Weighted Average Shares       43,126,526         43,275,377         43,597,504
 
 
Bank of Hawaii Corporation and Subsidiaries            
Consolidated Statements of Comprehensive Income                 Table 4
Three Months Ended
March 31, December 31, March 31,
(dollars in thousands)     2016     2015     2015
Net Income $ 50,210 $ 42,832 $ 42,442
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities 8,694 (6,860 ) 5,294
Defined Benefit Plans       141       4,595         220
Total Other Comprehensive Income (Loss)       8,835       (2,265 )       5,514
Comprehensive Income     $ 59,045     $ 40,567       $ 47,956
 
 
Bank of Hawaii Corporation and Subsidiaries            
Consolidated Statements of Condition                 Table 5
March 31, December 31, March 31,
(dollars in thousands)     2016     2015     2015
Assets
Interest-Bearing Deposits in Other Banks $ 4,453 $ 4,130 $ 3,383
Funds Sold 626,206 592,892 620,331
Investment Securities
Available-for-Sale 2,293,751 2,256,818 2,271,186
Held-to-Maturity (Fair Value of $3,981,830; $4,006,412; and $4,378,007) 3,911,703 3,982,736 4,306,353
Loans Held for Sale 16,854 4,808 1,951
Loans and Leases 8,065,610 7,878,985 7,178,628
Allowance for Loan and Lease Losses       (104,677 )       (102,880 )       (107,461 )
Net Loans and Leases       7,960,933         7,776,105         7,071,167  
Total Earning Assets       14,813,900         14,617,489         14,274,371  
Cash and Due from Banks 164,012 158,699 151,793
Premises and Equipment, Net 111,086 111,199 109,223
Accrued Interest Receivable 47,504 44,719 47,017
Foreclosed Real Estate 1,728 824 2,095
Mortgage Servicing Rights 22,663 23,002 23,643
Goodwill 31,517 31,517 31,517
Bank-Owned Life Insurance 269,723 268,175 264,228
Other Assets       192,562         199,392         235,292  
Total Assets     $ 15,654,695       $ 15,455,016       $ 15,139,179  
 
Liabilities
Deposits
Noninterest-Bearing Demand $ 4,329,321 $ 4,286,331 $ 4,047,334
Interest-Bearing Demand 2,759,357 2,761,930 2,608,664
Savings 5,172,206 5,025,191 5,014,686
Time       1,228,008         1,177,651         1,308,932  
Total Deposits       13,488,892         13,251,103         12,979,616  
Funds Purchased 7,333 7,333 8,459
Short-Term Borrowings 408 - -
Securities Sold Under Agreements to Repurchase 586,785 628,857 672,329
Other Debt 220,771 245,786 173,898
Retirement Benefits Payable 47,408 47,374 55,197
Accrued Interest Payable 5,661 5,032 5,836
Taxes Payable and Deferred Taxes 43,134 17,737 46,987
Other Liabilities       115,550         135,534         121,606  
Total Liabilities       14,515,942         14,338,756         14,063,928  
Shareholders' Equity

Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: March 31, 2016 - 57,849,536 / 43,080,503; December 31, 2015 - 57,749,071 / 43,282,153; and March 31, 2015 - 57,733,267 / 43,652,628)

576 575 575
Capital Surplus 544,267 542,041 534,141
Accumulated Other Comprehensive Loss (14,722 ) (23,557 ) (21,172 )
Retained Earnings 1,347,374 1,316,260 1,257,341

Treasury Stock, at Cost (Shares: March 31, 2016 - 14,769,033; December 31, 2015 - 14,466,918; and March 31, 2015 - 14,080,639)

      (738,742 )       (719,059 )       (695,634 )
Total Shareholders' Equity       1,138,753         1,116,260         1,075,251  
Total Liabilities and Shareholders' Equity     $ 15,654,695       $ 15,455,016       $ 15,139,179  
 
 
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, 2015 43,282,153 $ 575 $ 542,041 $ (23,557 ) $ 1,316,260 $ (719,059 ) $ 1,116,260
Net Income - - - - 50,210 - 50,210
Other Comprehensive Income - - - 8,835 - - 8,835
Share-Based Compensation - - 1,599 - - - 1,599
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits 141,083 1 627 - 368 1,775 2,771
Common Stock Repurchased (342,733 ) - - - - (21,458 ) (21,458 )
Cash Dividends Declared ($0.45 per share)     -         -       -       -         (19,464 )       -         (19,464 )
Balance as of March 31, 2016     43,080,503       $ 576     $ 544,267     $ (14,722 )     $ 1,347,374       $ (738,742 )     $ 1,138,753  
 
Balance as of December 31, 2014 43,724,208 $ 574 $ 531,932 $ (26,686 ) $ 1,234,801 $ (685,535 ) $ 1,055,086
Net Income - - - - 42,442 - 42,442
Other Comprehensive Income - - - 5,514 - - 5,514
Share-Based Compensation - - 1,776 - - - 1,776
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits 155,646 1 433 - (218 ) 3,045 3,261
Common Stock Repurchased (227,226 ) - - - - (13,144 ) (13,144 )
Cash Dividends Declared ($0.45 per share)     -         -       -       -         (19,684 )       -         (19,684 )
Balance as of March 31, 2015     43,652,628       $ 575     $ 534,141     $ (21,172 )     $ 1,257,341       $ (695,634 )     $ 1,075,251  
 
 

Bank of Hawaii Corporation and Subsidiaries

    

Average Balances and Interest Rates - Taxable-Equivalent Basis

                 Table 7
    Three Months Ended Three Months Ended Three Months Ended
March 31, 2016 December 31, 2015 March 31, 2015
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

$ 4.4 $ - 0.41 % $ 3.8 $ - 0.10 % $ 3.1 $ - 0.44 %
Funds Sold 647.7 0.8 0.46 466.3 0.3 0.26 484.3 0.2 0.21
Investment Securities
Available-for-Sale
Taxable 1,588.5 7.2 1.80 1,573.3 7.1 1.81 1,560.8 6.5 1.67
Non-Taxable 715.0 5.6 3.15 718.5 5.7 3.18 723.3 5.7 3.16
Held-to-Maturity
Taxable 3,679.6 18.8 2.05 3,827.9 20.2 2.10 4,140.9 22.8 2.21
Non-Taxable       245.5       2.4     3.91         246.6       2.4     3.92         249.1       2.5     3.94  
Total Investment Securities       6,228.6       34.0     2.19         6,366.3       35.4     2.22         6,674.1       37.5     2.25  
Loans Held for Sale 12.2 0.1 3.89 7.1 0.1 4.26 3.1 - 3.63
Loans and Leases 1
Commercial and Industrial 1,127.4 10.8 3.84 1,155.2 9.4 3.22 1,130.5 8.9 3.18
Commercial Mortgage 1,689.2 15.7 3.74 1,653.9 15.5 3.71 1,449.5 13.7 3.83
Construction 170.0 2.0 4.63 140.9 1.7 4.90 103.8 1.1 4.39
Commercial Lease Financing 198.9 1.3 2.69 204.2 1.8 3.46 225.9 1.9 3.42
Residential Mortgage 2,918.5 29.6 4.05 2,895.3 29.2 4.04 2,631.3 27.5 4.18
Home Equity 1,103.5 10.1 3.69 1,027.4 9.3 3.61 878.5 8.1 3.72
Automobile 388.6 5.0 5.19 373.7 4.9 5.19 331.5 4.3 5.25
Other 2       344.0       6.5     7.64         334.7       6.4     7.57         302.1       5.5     7.36  
Total Loans and Leases       7,940.1       81.0     4.09         7,785.3       78.2     4.00         7,053.1       71.0     4.06  
Other       38.4       0.2     2.21         41.1       0.4     3.71         66.0       0.3     1.83  
Total Earning Assets 3       14,871.4       116.1     3.13         14,669.9       114.4     3.11         14,283.7       109.0     3.07  
Cash and Due from Banks 131.0 126.2 136.5
Other Assets   534.7   539.5   525.8
Total Assets $ 15,537.1 $ 15,335.6 $ 14,946.0
 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand $ 2,761.6 0.3 0.04 $ 2,653.2 0.2 0.03 $ 2,577.1 0.2 0.03
Savings 5,137.6 1.1 0.09 5,028.8 1.1 0.09 4,941.0 1.1 0.09
Time       1,208.4       1.5     0.50         1,178.2       1.1     0.38         1,378.3       1.1     0.33  
Total Interest-Bearing Deposits       9,107.6       2.9     0.13         8,860.2       2.4     0.11         8,896.4       2.4     0.11  
Short-Term Borrowings 7.8 - 0.14 8.1 - 0.14 8.5 - 0.14
Securities Sold Under Agreements to Repurchase 602.9 6.2 4.04 630.5 6.3 3.88 678.0 6.4 3.76
Other Debt       232.3       1.0     1.73         306.4       1.0     1.34         173.9       0.6     1.43  
Total Interest-Bearing Liabilities       9,950.6       10.1     0.40         9,805.2       9.7     0.39         9,756.8       9.4     0.39  
Net Interest Income $ 106.0 $ 104.7 $ 99.6
Interest Rate Spread 2.73 % 2.72 % 2.68 %
Net Interest Margin 2.86 % 2.85 % 2.81 %
Noninterest-Bearing Demand Deposits 4,227.0 4,178.4 3,890.0
Other Liabilities 229.9 249.5 235.1
Shareholders' Equity   1,129.6   1,102.5   1,064.1
Total Liabilities and Shareholders' Equity $ 15,537.1 $ 15,335.6 $ 14,946.0
 

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 35%, of $3,013,000, $3,016,000 and $2,878,000 for the three months ended March 31, 2016, December 31, 2015, and March 31, 2015, respectively.

 
 
Bank of Hawaii Corporation and Subsidiaries            
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis                 Table 8a
Three Months Ended March 31, 2016
Compared to December 31, 2015
(dollars in millions)     Volume 1     Rate 1     Total
Change in Interest Income:
Funds Sold $ 0.2 $ 0.3 $ 0.5
Investment Securities
Available-for-Sale
Taxable 0.1 - 0.1
Non-Taxable - (0.1 ) (0.1 )
Held-to-Maturity
Taxable       (0.9 )       (0.5 )       (1.4 )
Total Investment Securities       (0.8 )       (0.6 )       (1.4 )
Loans and Leases
Commercial and Industrial (0.2 ) 1.6 1.4
Commercial Mortgage 0.1 0.1 0.2
Construction 0.4 (0.1 ) 0.3
Commercial Lease Financing - (0.5 ) (0.5 )
Residential Mortgage 0.2 0.2 0.4
Home Equity 0.6 0.2 0.8
Automobile 0.1 - 0.1
Other 2       0.1         -         0.1  
Total Loans and Leases       1.3         1.5         2.8  
Other       -         (0.2 )       (0.2 )
Total Change in Interest Income       0.7         1.0         1.7  
 
Change in Interest Expense:
Interest-Bearing Deposits
Demand 0.1 - 0.1
Time       -         0.4         0.4  
Total Interest-Bearing Deposits       0.1         0.4         0.5  
Securities Sold Under Agreements to Repurchase (0.3 ) 0.2 (0.1 )
Other Debt       (0.3 )       0.3         -  
Total Change in Interest Expense       (0.5 )       0.9         0.4  
 
Change in Net Interest Income     $ 1.2       $ 0.1       $ 1.3  
 

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            
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis                 Table 8b
Three Months Ended March 31, 2016
Compared to March 31, 2015
(dollars in millions)     Volume 1     Rate 1     Total
Change in Interest Income:
Funds Sold $ 0.1 $ 0.5 $ 0.6
Investment Securities
Available-for-Sale
Taxable 0.1 0.6 0.7
Non-Taxable (0.1 ) - (0.1 )
Held-to-Maturity
Taxable (2.4 ) (1.6 ) (4.0 )
Non-Taxable       (0.1 )       -         (0.1 )
Total Investment Securities       (2.5 )       (1.0 )       (3.5 )
Loans Held for Sale 0.1 - 0.1
Loans and Leases
Commercial and Industrial - 1.9 1.9
Commercial Mortgage 2.3 (0.3 ) 2.0
Construction 0.8 0.1 0.9
Commercial Lease Financing (0.2 ) (0.4 ) (0.6 )
Residential Mortgage 3.0 (0.9 ) 2.1
Home Equity 2.1 (0.1 ) 2.0
Automobile 0.8 (0.1 ) 0.7
Other 2       0.8         0.2         1.0  
Total Loans and Leases       9.6         0.4         10.0  
Other       (0.1 )       -         (0.1 )
Total Change in Interest Income       7.2         (0.1 )       7.1  
 
Change in Interest Expense:
Interest-Bearing Deposits
Demand 0.1 - 0.1
Time       (0.2 )       0.6         0.4  
Total Interest-Bearing Deposits       (0.1 )       0.6         0.5  
Securities Sold Under Agreements to Repurchase (0.7 ) 0.5 (0.2 )
Other Debt       0.2         0.2         0.4  
Total Change in Interest Expense       (0.6 )       1.3         0.7  
 
Change in Net Interest Income     $ 7.8       $ (1.4 )     $ 6.4  
 

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            
Salaries and Benefits                 Table 9
Three Months Ended
March 31, December 31, March 31,
(dollars in thousands)     2016     2015     2015
Salaries $ 29,141 $ 29,356 $ 27,914
Incentive Compensation 5,965 4,971 4,514
Share-Based Compensation 2,310 2,678 2,345
Commission Expense 1,357 1,375 1,592
Retirement and Other Benefits 4,954 4,056 4,731
Payroll Taxes 3,577 2,032 3,585
Medical, Dental, and Life Insurance 2,892 3,077 3,184
Separation Expense       318       452       1,915
Total Salaries and Benefits     $ 50,514     $ 47,997     $ 49,780
 
 
Bank of Hawaii Corporation and Subsidiaries                
Loan and Lease Portfolio Balances                       Table 10
    March 31, December 31, September 30, June 30, March 31,
(dollars in thousands)     2016     2015     2015     2015     2015
Commercial
Commercial and Industrial $ 1,180,341 $ 1,115,168 $ 1,169,817 $ 1,173,259 $ 1,141,408
Commercial Mortgage 1,687,199 1,677,147 1,622,119 1,528,685 1,477,902
Construction 192,909 156,660 129,254 118,714 111,381
Lease Financing       195,804       204,877       202,055       222,113       224,419
Total Commercial       3,256,253       3,153,852       3,123,245       3,042,771       2,955,110
Consumer
Residential Mortgage 2,929,388 2,925,605 2,875,605 2,787,847 2,699,434
Home Equity 1,131,796 1,069,400 993,817 931,191 884,742
Automobile 399,825 381,735 367,640 352,128 339,686
Other 1       348,348       348,393       329,465       314,501       299,656
Total Consumer       4,809,357       4,725,133       4,566,527       4,385,667       4,223,518
Total Loans and Leases     $ 8,065,610     $ 7,878,985     $ 7,689,772     $ 7,428,438     $ 7,178,628
 
 
Deposits                              
March 31, December 31, September 30, June 30, March 31,
(dollars in thousands)     2016     2015     2015     2015     2015
Consumer $ 6,568,651 $ 6,445,510 $ 6,254,862 $ 6,221,691 $ 6,220,391
Commercial 5,678,987 5,502,739 5,397,857 5,524,153 5,444,814
Public and Other       1,241,254       1,302,854       1,284,243       1,344,851       1,314,411
Total Deposits     $ 13,488,892     $ 13,251,103     $ 12,936,962     $ 13,090,695     $ 12,979,616
 

1

  

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

 
 
Bank of Hawaii Corporation and Subsidiaries        
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More           Table 11
    March 31,     December 31,     September 30, June 30, March 31,
(dollars in thousands)     2016     2015     2015     2015     2015
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial $ 666 $ 5,829 $ 8,532 $ 8,299 $ 8,641
Commercial Mortgage       3,401         3,469         1,058         716         732  
Total Commercial       4,067         9,298         9,590         9,015         9,373  
Consumer
Residential Mortgage 13,719 14,598 14,749 14,918 14,344
Home Equity       2,501         4,081         3,814         3,528         2,965  
Total Consumer       16,220         18,679         18,563         18,446         17,309  
Total Non-Accrual Loans and Leases       20,287         27,977         28,153         27,461         26,682  
Foreclosed Real Estate       1,728         824         1,392         1,989         2,095  
Total Non-Performing Assets     $ 22,015       $ 28,801       $ 29,545       $ 29,450       $ 28,777  
 
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial     $ -       $ -       $ -       $ 750       $ -  
Total Commercial       -         -         -         750         -  
Consumer
Residential Mortgage 4,219 4,453 5,060 4,789 3,914
Home Equity 2,096 1,710 1,396 2,395 2,425
Automobile 524 315 631 323 537
Other 1       1,099         1,096         1,058         1,395         1,078  
Total Consumer       7,938         7,574         8,145         8,902         7,954  
Total Accruing Loans and Leases Past Due 90 Days or More     $ 7,938       $ 7,574       $ 8,145       $ 9,652       $ 7,954  

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

     $ 50,707       $ 49,430       $ 49,506       $ 48,339       $ 46,639  
Total Loans and Leases     $ 8,065,610       $ 7,878,985       $ 7,689,772       $ 7,428,438       $ 7,178,628  
 
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases       0.25 %       0.36 %       0.37 %       0.37 %       0.37 %
 

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

      0.27 %       0.37 %       0.38 %       0.40 %       0.40 %
 

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

      0.12 %       0.29 %       0.31 %       0.32 %       0.34 %
 

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

      0.37 %       0.41 %       0.44 %       0.45 %       0.44 %
 

Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases and Foreclosed Real Estate

      0.37 %       0.46 %       0.49 %       0.53 %       0.51 %
 
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter $ 28,801 $ 29,545 $ 29,450 $ 28,777 $ 30,082
Additions 4,002 2,353 4,427 1,909 621
Reductions
Payments (6,012 ) (2,473 ) (1,191 ) (1,020 ) (1,427 )
Return to Accrual Status (4,272 ) (24 ) (1,748 ) - (187 )
Sales of Foreclosed Real Estate (248 ) (458 ) (1,300 ) (83 ) (37 )
Charge-offs/Write-downs       (256 )       (142 )       (93 )       (133 )       (275 )
Total Reductions       (10,788 )       (3,097 )       (4,332 )       (1,236 )       (1,926 )
Balance at End of Quarter     $ 22,015       $ 28,801       $ 29,545       $ 29,450       $ 28,777  
 

1

  

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

 
 
Bank of Hawaii Corporation and Subsidiaries            
Reserve for Credit Losses                 Table 12
Three Months Ended
March 31, December 31, March 31,
(dollars in thousands)     2016     2015     2015
Balance at Beginning of Period $ 108,952 $ 110,110 $ 114,575
Loans and Leases Charged-Off
Commercial
Commercial and Industrial (257 ) (304 ) (235 )
Consumer
Residential Mortgage (205 ) - (559 )
Home Equity (643 ) (269 ) (216 )
Automobile (1,560 ) (1,719 ) (1,428 )
Other 1       (2,222 )       (2,170 )       (1,650 )
Total Loans and Leases Charged-Off       (4,887 )       (4,462 )       (4,088 )
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial 6,867 420 646
Commercial Mortgage 14 18 14
Construction 23 8 8
Lease Financing 1 1 68
Consumer
Residential Mortgage 201 577 342
Home Equity 513 349 881
Automobile 592 519 494
Other 1       473         412         408  
Total Recoveries on Loans and Leases Previously Charged-Off       8,684         2,304         2,861  
Net Loans and Leases Recovered (Charged-Off) 3,797 (2,158 ) (1,227 )
Provision for Credit Losses (2,000 ) 1,000 -
Provision for Unfunded Commitments       500         -         -  
Balance at End of Period 2     $ 111,249       $ 108,952       $ 113,348  
 
Components
Allowance for Loan and Lease Losses $ 104,677 $ 102,880 $ 107,461
Reserve for Unfunded Commitments       6,572         6,072         5,887  
Total Reserve for Credit Losses     $ 111,249       $ 108,952       $ 113,348  
 
Average Loans and Leases Outstanding     $ 7,940,097       $ 7,785,346       $ 7,053,061  
 
Ratio of Net Loans and Leases Charged-Off (Recovered) to
Average Loans and Leases Outstanding (annualized) -0.19 % 0.11 % 0.07 %
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding 1.30 % 1.31 % 1.50 %
 

1

  

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

2

Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.

 
 
Bank of Hawaii Corporation and Subsidiaries                
Business Segments Selected Financial Information                       Table 13
    Retail Commercial Investment Treasury Consolidated
(dollars in thousands)     Banking     Banking     Services     and Other     Total
Three Months Ended March 31, 2016
Net Interest Income $ 58,010 $ 38,348 $ 6,452 $ 214 $ 103,024
Provision for Credit Losses       2,835         (6,626 )       (6 )       1,797         (2,000 )
Net Interest Income After Provision for Credit Losses 55,175 44,974 6,458 (1,583 ) 105,024
Noninterest Income 20,807 7,600 14,024 13,776 56,207
Noninterest Expense       (52,741 )       (17,268 )       (15,427 )       (1,950 )       (87,386 )
Income Before Provision for Income Taxes 23,241 35,306 5,055 10,243 73,845
Provision for Income Taxes       (8,227 )       (12,656 )       (1,870 )       (882 )       (23,635 )
Net Income     $ 15,014       $ 22,650       $ 3,185       $ 9,361       $ 50,210  
Total Assets as of March 31, 2016     $ 4,763,749       $ 3,196,413       $ 284,891       $ 7,409,642       $ 15,654,695  
 
 
Three Months Ended March 31, 2015 1
Net Interest Income $ 48,349 $ 34,274 $ 4,300 $ 9,847 $ 96,770
Provision for Credit Losses       1,723         (464 )       (8 )       (1,251 )       -  
Net Interest Income After Provision for Credit Losses 46,626 34,738 4,308 11,098 96,770
Noninterest Income 19,108 5,651 14,726 12,822 52,307
Noninterest Expense       (50,340 )       (17,886 )       (14,590 )       (4,099 )       (86,915 )
Income Before Provision for Income Taxes 15,394 22,503 4,444 19,821 62,162
Provision for Income Taxes       (5,526 )       (7,865 )       (1,644 )       (4,685 )       (19,720 )
Net Income     $ 9,868       $ 14,638       $ 2,800       $ 15,136       $ 42,442  
Total Assets as of March 31, 2015 1     $ 4,239,641       $ 2,910,911       $ 188,399       $ 7,800,228       $ 15,139,179  
 

1

  

Certain prior period information has been reclassified to conform to current presentation.

 
 
Bank of Hawaii Corporation and Subsidiaries        
Selected Quarterly Financial Data                       Table 14
    Three Months Ended
March 31, December 31, September 30, June 30, March 31,
(dollars in thousands, except per share amounts)     2016     2015     2015     2015     2015
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases $ 80,895 $ 78,122 $ 75,874 $ 73,565 $ 70,961
Income on Investment Securities
Available-for-Sale 10,814 10,829 10,192 10,273 10,198
Held-to-Maturity 20,391 21,722 20,689 22,832 24,407
Deposits 4 1 2 2 3
Funds Sold 753 315 291 268 259
Other       212         381         312         310         302
Total Interest Income       113,069         111,370         107,360         107,250         106,130
Interest Expense
Deposits 2,886 2,443 2,410 2,405 2,368
Securities Sold Under Agreements to Repurchase 6,153 6,246 6,307 6,440 6,371
Funds Purchased 3 3 3 3 3
Other Debt       1,003         1,034         749         620         618
Total Interest Expense       10,045         9,726         9,469         9,468         9,360
Net Interest Income 103,024 101,644 97,891 97,782 96,770
Provision for Credit Losses       (2,000 )       1,000         -         -         -
Net Interest Income After Provision for Credit Losses       105,024         100,644         97,891         97,782         96,770
Noninterest Income
Trust and Asset Management 11,256 11,243 11,907 12,355 12,180
Mortgage Banking 3,189 3,130 3,291 3,469 1,693
Service Charges on Deposit Accounts 8,443 8,663 8,669 8,203 8,537
Fees, Exchange, and Other Service Charges 13,444 13,764 13,340 13,352 12,897
Investment Securities Gains, Net 11,180 (181 ) 24 86 10,231
Annuity and Insurance 1,901 2,014 1,721 1,885 2,044
Bank-Owned Life Insurance 1,548 1,608 1,609 2,088 1,734
Other       5,246         4,525         2,660         4,487         2,991
Total Noninterest Income       56,207         44,766         43,221         45,925         52,307
Noninterest Expense
Salaries and Benefits 50,514 47,997 46,576 47,610 49,780
Net Occupancy 7,003 4,876 7,403 8,605 9,333
Net Equipment 5,409 5,244 4,804 4,826 5,288
Data Processing 3,951 5,106 3,920 3,673 3,773
Professional Fees 2,639 2,803 2,258 2,265 2,334
FDIC Insurance 2,352 2,322 2,139 2,068 2,140
Other       15,518         17,379         24,788         14,527         14,267
Total Noninterest Expense       87,386         85,727         91,888         83,574         86,915
Income Before Provision for Income Taxes 73,845 59,683 49,224 60,133 62,162
Provision for Income Taxes       23,635         16,851         14,948         18,979         19,720
Net Income     $ 50,210       $ 42,832       $ 34,276       $ 41,154       $ 42,442
 
Basic Earnings Per Share $ 1.17 $ 1.00 $ 0.79 $ 0.95 $ 0.98
Diluted Earnings Per Share $ 1.16 $ 0.99 $ 0.79 $ 0.95 $ 0.97
 
Balance Sheet Totals
Loans and Leases $ 8,065,610 $ 7,878,985 $ 7,689,772 $ 7,428,438 $ 7,178,628
Total Assets 15,654,695 15,455,016 15,164,123 15,248,043 15,139,179
Total Deposits 13,488,892 13,251,103 12,936,962 13,090,695 12,979,616
Total Shareholders' Equity 1,138,753 1,116,260 1,098,354 1,082,939 1,075,251
 
Performance Ratios
Return on Average Assets 1.30 % 1.11 % 0.89 % 1.10 % 1.15 %
Return on Average Shareholders' Equity 17.88 15.41 12.45 15.33 16.18
Efficiency Ratio 1 54.88 58.55 65.12 58.16 58.30
Net Interest Margin 2 2.86 2.85 2.77 2.81 2.81
 

1

  

Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).

2

Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.

 
 
Bank of Hawaii Corporation and Subsidiaries    
Hawaii Economic Trends           Table 15
    Two Months Ended Year Ended  
($ in millions; jobs in thousands)     February 29, 2016     December 31, 2015     December 31, 2014  
Hawaii Economic Trends        

State General Fund Revenues 1

 $ 1,063.5 1.6 % $ 5,998.6 8.4 % $ 5,535.7 1.6 %

General Excise and Use Tax Revenue 1

 $ 574.5 7.5 % $ 3,141.5 5.4 % $ 2,979.8 2.5 %
Jobs 2 666.4 658.8 643.7
                                             
March 31, December 31,  
(spot rates)                           2016     2015     2014  

Unemployment 3

Statewide, seasonally adjusted 3.1 % 3.2 % 4.0 %
 
Oahu 3.0 2.7 3.5
Island of Hawaii 3.9 3.7 4.7
Maui 3.4 3.1 3.8
Kauai 3.5 3.5 4.3
                                             
March 31, December 31,  
(percentage change, except months of inventory)             2016     2015     2014     2013  
Housing Trends (Single Family Oahu) 4
Median Home Price 7.2 % 3.7 % 3.8 % 4.8 %
Home Sales Volume (units) 17.4 % 5.2 % (0.8 ) % 4.6 %
Months of Inventory 2.1 2.6 2.6 2.7
                                             
Monthly Visitor Arrivals, Percentage Change
(in thousands)                   Not Seasonally Adjusted     from Previous Year  
Tourism 5
 
February 29, 2016 688.8 4.1
January 31, 2016 721.0 6.2
December 31, 2015 794.2 3.7
November 30, 2015 661.4 3.7
October 31, 2015 692.9 4.8
September 30, 2015 652.6 4.7
August 31, 2015 755.9 2.9
July 31, 2015 816.3 5.6
June 30, 2015 767.9 6.0
May 31, 2015 709.7 9.3
April 30, 2015 677.8 2.3
March 31, 2015 780.1 7.0
February 28, 2015 661.7 2.3
January 31, 2015 678.9 (0.6 )
December 31, 2014 766.0 6.3
November 30, 2014 638.0 2.2
October 31, 2014 661.0 3.2
September 30, 2014 623.1 4.2
August 31, 2014 734.7 (1.9 )
July 31, 2014 772.8 2.0
June 30, 2014 724.5 1.1
May 31, 2014 649.1 1.8
April 30, 2014 662.6 (0.7 )
March 31, 2014 728.8 (5.2 )
February 28, 2014 646.8 (4.3 )
January 31, 2014 682.6 0.1
 

1

  

Source: Hawaii Department of Business, Economic Development & Tourism

2

Source: U. S. Bureau of Labor

3

Source: Hawaii Department of Labor and Industrial Relations, County jobs data not seasonally adjusted.

4

Source: Honolulu Board of REALTORS

5

Source: Hawaii Tourism Authority

Note: Certain prior period seasonally adjusted information has been revised.