Bank of Hawaii Corporation 2002 Financial Results.Business Editors HONOLULU--(BUSINESS WIRE)--Jan. 27, 2003 -- 2002 Net Income $121.2 Million, Up 3% From 2001 -- 2002 Diluted Earnings Per Share Increase to $1.70, Up 16% From 2001 -- Board of Directors Declares Dividend of $0.19 Per Share Bank of Hawaii Bank of Hawaii, a subsidiary of Bank of Hawaii Corporation (NYSE: BOH), is a regional commercial bank headquartered in Honolulu, Hawaii. It is Hawaii's second oldest bank and its largest locally owned bank in that majority of the voting stockholders reside within the state. Corporation (NYSE NYSE See: New York Stock Exchange :BOH BOH Bournemouth (UK) Airport Identifier BOH Bank of Hawaii BOH Board of Health BOH Back Of House BOH Board of Housing (Montana Dept of Commerce) BOH Badge of Honor BOH Bridge Of Hope BOH Bag of Holding ) today reported diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for 2002 of $1.70, compared to diluted earnings per share of $1.46 in 2001. Net income for the year was $121.2 million, up $3.4 million from $117.8 million reported in the previous year. The return on average assets in 2002 was 1.22 percent, up 31.2 percent compared to 0.93 percent in 2001. The return on average equity was 10.24 percent, an increase of 16.9 percent from 8.76 percent in 2001. "We are pleased with several aspects of Bank of Hawaii's results for 2002," said Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. E. O'Neill, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Our people are much more focused on our key markets in Hawaii Hawaii, island, United States Hawaii, island (1990 pop. 120,217), 4,037 sq mi (10,456 sq km), largest and southernmost island of the state of Hawaii and coextensive with Hawaii co.; known as the Big Island. , Guam Guam (gwäm), Chamorro Guåhan, the largest, most populous, and southernmost of the Mariana Islands (see also Northern Mariana Islands, an unincorporated territory of the United States (2005 est. pop. and American Samoa American Samoa, officially Territory of American Samoa, unincorporated territory of the United States (2000 pop. 57,291), comprising the eastern half of the Samoa island chain in the South Pacific. . Our credit quality has improved, our margin has strengthened, our share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program has returned $530 million to shareholders and our technology conversion program is on schedule. Importantly, our customer and employee satisfaction measures have strengthened and our banking businesses are poised for growth in 2003. We remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that we can continue to improve our efficiency and benefit from an improved economy this year." Diluted earnings per share for the fourth quarter of 2002 were $0.44, up $0.10 or 29.4 percent from $0.34 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the same period last year. Net income in the fourth quarter was $28.9 million, up 9.9 percent from net income of $26.3 million in the fourth quarter last year. The presence of non-core items and the effect of business divestitures in 2001 continue to have a significant impact on the comparability with prior year results. Included in the fourth quarter of 2002 were charges of $7.0 million related to the information technology systems replacement project and $0.4 million in net restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). expenses from the closure of four branches in the West Pacific that were partially offset by a reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of reserves related to the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). program. Earnings for the fourth quarter of 2001 included gains on divestitures and restructuring items that increased net income by $6.4 million, or $0.08 per diluted share. Supplemental information has been provided in Table 11 that summarizes the continuing business operating results for the last eight quarters. Financial Highlights Net interest income for the fourth quarter of 2002 on a fully taxable equivalent basis was $90.2 million, down $2.0 million from the third quarter of 2002 primarily due to decreased interest rates. Net interest income was down $16.0 million from the fourth quarter of 2001 primarily due to lower average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin related to the divestitures and the managed reduction of loans in an effort to reduce credit risk. The net interest margin was 4.05 percent for the fourth quarter of 2002, a 2 basis point increase from 4.03 percent in the previous quarter and a 12 basis point increase from 3.93 percent in the same quarter last year. The net interest margin improvement was largely due to lengthening lengthening (lengkˑ·the·ning), n the use of various massage or muscle energy techniques to relax and stretch muscle and connective tissue. the maturities of some short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments, reductions in short-term borrowings and time deposits, as well as debt repurchases, which lowered the Company's cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. . Given continued improvements in Bank of Hawaii Corporation's credit quality, the Company did not recognize a provision for loan and lease losses during the fourth quarter of 2002. This resulted in a $11.6 million reduction in the allowance for loan and lease losses, which equaled the amount of net charge-offs for the quarter. The Company did not recognize a provision for loan and lease losses during the third quarter of 2002. The provision for loan and lease losses was $14.5 million in the fourth quarter of 2001. Non-interest income was $51.1 million for the quarter, an increase of $3.7 million, or 7.8 percent, from non-interest income of $47.4 million in the third quarter of 2002. Non-interest income of $79.0 million for the fourth quarter of 2001 included $28.7 million in net gains on sales of the Company's South Pacific operations that were partially offset by write-downs on venture investments. Excluding these items, non-interest income increased $0.9 million, or 1.7 percent from the same quarter last year. Non-interest expense for the fourth quarter of 2002 was $97.5 million, including the previously mentioned $7.4 million in information technology system replacement and restructuring costs. Excluding these items, non-interest expense increased by $4.5 million, or 5.3 percent, to $90.0 million compared to $85.5 million in the previous quarter. The increase was largely the result of severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when expenses, damage from Typhoon Pongsona  Typhoon Pongsona (international designation: 0226, JTWC designation: 31W in Guam and professional fees accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . Non-interest expense of $140.0 million for the fourth quarter of 2001 included restructuring and other related costs of $18.5 million. Excluding these items, non-interest expenses declined $31.5 million, or 25.9 percent, from the same quarter last year and were largely due to savings associated with the divested businesses. The efficiency ratio was 65.0 percent for the full year of 2002. Excluding the systems replacement project costs and non-recurring items, the efficiency ratio was 62.2 percent compared to the continuing business efficiency ratio of 63.4 percent last year. The Company anticipates that the efficiency ratio excluding systems replacement costs will be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 58.0 percent by the end of 2003. The effective tax rate of 35.4 percent for 2002 is a decrease from the prior year as the effective tax rate in 2001 reflected the impact of divestitures and foreign taxes. The unusually low effective tax rate for the fourth quarter of 2001 was due to the impact of foreign tax and other credits recognized in the quarter as well as adjustments in the effective tax rate for the full year of 2001. Asset Quality Bank of Hawaii Corporation's credit quality improved during the fourth quarter of 2002 as measured by reductions in non-performing assets and continued improvement in the Company's internal credit risk ratings. Non-performing assets were $54.4 million at the end of the fourth quarter of 2002, a decrease of $8.9 million, or 14.1 percent, from non-performing assets of $63.3 million at the end of the third quarter. Compared to the same period last year, non-performing assets declined $25.3 million, or 31.7 percent. At December December: see month. 31, 2002 the ratio of non-performing assets to total loans plus foreclosed assets and non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. held for sale was 1.01 percent, down from 1.20 percent at September September: see month. 30, 2002 and down from 1.40 percent at December 31, 2001. Non-accrual loans were $45.0 million at December 31, 2002, a reduction of $0.7 million from $45.7 million at September 30, 2002 and down $15.8 million, or 26.0 percent, from $60.8 million at December 31, 2001. Non-accrual loans as a percentage of total loans were 0.84 percent at December 31, 2002, down from 0.87 percent at the end of the previous quarter and down from 1.07 percent at December 31, 2001. Net charge-offs for the fourth quarter of 2002 were $11.6 million, or 0.88 percent, of total average loans (annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. ). Charge-offs of $15.0 million, which includes an $8.8 million write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of an aircraft lease, were partially offset by recoveries of $3.4 million. Net charge-offs of $27.7 million for the full year of 2002 were 0.51 percent of total average loans (annualized), a significant improvement from net charge-offs of $121.4 million, or 1.57 percent in the prior year. The allowance for loan and lease losses was $142.9 million at December 31, 2002, a decrease of $11.6 million compared with September 30, 2002 and a decrease of $16.1 million from December 31, 2001. The ratio of the allowance for loan and lease losses to total loans was 2.67 percent at December 31, 2002 compared with 2.94 percent at the end of the third quarter and 2.81 percent at the end of the same quarter last year. The concentration of credit exposure to selected industries and the amount of the Company's syndicated exposure are summarized in Table 6. Other Financial Highlights Total assets were $9.5 billion at the end of December 31, 2002, down from $10.6 billion at December 31, 2001 and down slightly from $9.7 billion at the end of September 30, 2002. The most significant decrease compared to the previous year was commercial loans as the Company made strategic risk reductions in the portfolio. Compared to September 30, 2002, total assets decreased $186 million from $9.7 billion largely due to reductions in short-term investments as excess liquidity was utilized for share repurchase and debt reduction during the quarter. Total deposits at December 31, 2002 were $6.9 billion, up $242 million from December 31, 2001 and up $293 million from the end of September 30, 2002. Quarterly deposit levels are summarized in Table 9. Strong growth in demand and savings deposits Savings deposits Accounts that pay interest, typically at below-market interest rates, that do not have a specific maturity, and that usually can be withdrawn upon demand. more than offset managed decreases in time and foreign deposits. The Company continues to manage down higher cost funds, including time deposits, purchased funds and long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . During the fourth quarter of 2002, Bank of Hawaii Corporation repurchased 3.3 million shares of common stock at a total cost of $94.1 million. The average cost per share was $28.90 during the quarter. At December 31, 2002, the Company had repurchased a total of 20.1 million shares under its previously announced share repurchase programs. Through December 31, 2002, a total of $527.9 million had been returned to the shareholder at an average cost of $26.21 per share. An additional program to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to $230 million of common stock was announced on December 13, 2002. This new authorization The right or permission to use a system resource; the process of granting access. See access control. , combined with the Company's previously announced authorizations of $570 million, brings the total repurchase authority to $800 million. Through January January: see month. 24, 2003, the Company repurchased an additional 1.4 million shares of common stock at a cost of $30.29 per share. Remaining buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may authority was $230.4 million at January 24, 2003. The Company's capital and liquidity remains exceptionally strong. At December 31, 2002 the Tier 1 leverage ratio was 10.34 percent compared to 11.20 percent at December 31, 2001 and 11.07 percent at September 30, 2002. The Company's Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a quarterly cash dividend of $0.19 per share on the Company's outstanding shares. The dividend will be payable on March 14, 2003 to shareholders of record at the close of business on February February: see month. 24, 2003. Information Technology Systems Replacement Project Bank of Hawaii Corporation signed an agreement with Metavante Corporation Metavante is a company that provides financial technology services and software to its customers, consisting primarily of small to large sized financial institutions. The $1.5 billion organization is headquartered in Milwaukee, Wisconsin and employs over 5,600 employees in 35 U.S. in July July: see month. 2002 to serve as the Company's primary technology systems provider. The seven-year outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. arrangement is on schedule to be operational in the third quarter of 2003 and is expected to provide annual cost savings of over $17 million compared to current expense levels. In connection with this decision, the Company estimates that it will recognize transition charges of approximately $35 million over the five-quarter conversion period that began in the third quarter of 2002. During the fourth quarter, $7.0 million in transition costs were incurred, bringing the total cost to $13.6 million in 2002. System conversion costs are estimated to be approximately $7.7 million in the first quarter of 2003. Additional details on this project may be found in Table 10. Economic Outlook The current macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. forecast for Hawaii in 2003 is real economic growth of 3.1 percent after modest inflation of 1.8 percent with 2.0 percent job growth, part of which is still recovery from 9/11. Tourism growth for 2003 is forecast at 4.7 percent for domestic travel markets and at 4.8 percent for international travelers. Construction and real estate investment will continue to drive the economy forward in 2003, despite lingering lin·ger v. lin·gered, lin·ger·ing, lin·gers v.intr. 1. To be slow in leaving, especially out of reluctance; tarry. See Synonyms at stay1. 2. geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. risks. For more economic information, visit the Company's web site http://www.boh.com/econ/. Earnings Outlook Bank of Hawaii Corporation updates its earnings guidance to $131 million in net income for the full year of 2003. Net income is expected to increase in the second half of 2003 after completion of the systems conversion project. Based on current conditions, the Company does not expect to record a provision for loan losses in 2003. However, the actual amount of the provision for loan losses will depend on determinations of credit risk that will be made near the end of each quarter. Earnings per share and return on equity projections continue to be dependent upon the terms and timing of share repurchases. Conference Call Information The Company will review its 2002 financial results today at 8:00 a.m. Hawaii Time Noun 1. Hawaii Time - standard time in the 10th time zone west of Greenwich, reckoned at the 150th meridian west; used in Hawaii and the western Aleutian Islands Hawaii Standard Time (1:00 p.m. Eastern Time). The presentation will be accessible via teleconference and via the investor relations Investor relations The process by which the corporation communicates with its investors. link of Bank of Hawaii Corporation's web site, www.boh.com. The conference call number is 800/915-4836 in the U.S. or 973/317-5319 for international callers. A replay will be available for one week beginning at 10:00 a.m. Hawaii Time (3:00 p.m. Eastern Time) on Monday Monday: see week. , January 27, 2003 by calling 800/428-6051 in the U.S or 973/709-2089 for international and entering the number 273137 when prompted. A replay of the presentation will be also available on the Company's web site. Bank of Hawaii Corporation is a regional financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. 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. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. concerning the expected efficiency ratio, expected level of loan loss provisioning, anticipated costs and annual savings of our technology systems replacement project, and anticipated revenues and expenses in 2003 and beyond. We believe the assumptions underlying our forward-looking statements are reasonable. However, any of the assumptions could prove to be inaccurate and actual results may differ materially from those projected for a variety of reasons including, but not limited to: the Hawaii economy may not continue at the pace we anticipate; our refocused emphasis on our Hawaii market may not achieve the customer and revenue gains we anticipate; our credit markets may deteriorate de·te·ri·o·rate v. 1. To grow worse in function or condition. 2. To weaken or disintegrate. and our credit quality may fall short of our goals; we may not achieve the expense reductions we expect; we may not be able to maintain our net interest margin; we may not be able to implement our proposed equity repurchases in the amount or at the times planned; the economics or timing, or both, of our technology outsourcing project may not result in the expected benefits; unanticipated difficulties or delays in the conversion of our data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a to outsourcing may result in the reduction or delay of anticipated cost savings or increased cost of conversion; the technology outsourcing project may not be able to achieve the projected reductions in staffing; we may encounter unanticipated difficulties or costs in exiting existing data processing agreements with third parties; the required level of reserves for loan and lease losses may increase or decrease due to changes in our credit quality or risk profile; there may be economic volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the in the markets we serve; and there may be changes in business and economic conditions, competition, fiscal and monetary policies or legislation. We do not undertake any obligation to update any forward-looking statements to reflect later events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or .
Bank of Hawaii Corporation
and Subsidiaries Highlights (Unaudited) Table 1
(dollars in thousands except per share amounts)
----------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
Earnings Highlights and
Performance Ratios 2002 2001 2002 2001
--------------------------- ----------------- ------------------------
Net Income $28,908 $26,320 $121,180 $117,795
Basic Earnings Per Share 0.45 0.35 1.75 1.49
Diluted Earnings Per Share 0.44 0.34 1.70 1.46
Cash Dividends 12,193 13,152 50,635 56,567
Return on Average Assets 1.20% 0.90% 1.22% 0.93%
Return on Average Equity 10.72% 8.14% 10.24% 8.76%
Net Interest Margin 4.05% 3.93% 3.99% 3.91%
Efficiency Ratio 68.97% 75.61% 65.04% 65.40%
Continuing Business
Efficiency Ratio (1) 63.70% 71.99% 62.24% 63.36%
----------------------------------------------------------------------
Statement of Condition Highlights December 31
and Performance Ratios 2002 2001
------------------------------------ ------------------------
Total Assets $9,516,418 $10,632,400
Net Loans 5,216,151 5,498,143
Total Deposits 6,920,161 6,678,220
Total Shareholders' Equity 1,015,759 1,247,012
Book Value Per Common Share $16.12 $17.03
Allowance / Loans Outstanding 2.67% 2.81%
Average Equity / Average Assets 11.88% 10.59%
Employees (FTE) 2,891 3,175
Branches and offices 93 97
Market Price Per Share of Common
Stock for the Quarter Ended:
Closing $30.39 $25.89
High $31.05 $26.40
Low $25.40 $19.32
(1) Excludes the effects of the businesses that were divested in 2001,
restructuring costs, non-core transactions and costs associated with
the information technology system replacement project. Goodwill
amortization expense is excluded from 2001.
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited) Table 2
(dollars in thousands except per share amounts)
----------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
2002 2001 2002 2001
----------------------------------------------------------------------
Interest Income
Interest and Fees on
Loan and Leases $85,945 $123,716 $366,366 $619,447
Income on Investment
Securities - Held to
Maturity 4,658 6,401 19,597 33,521
Income on Investment
Securities - Available
for Sale 22,552 29,338 101,438 137,320
Deposits 3,578 7,858 20,020 27,596
Funds Sold and Security
Resale Agreements 834 803 3,503 5,034
Other 1,312 1,396 5,614 5,344
----------------------------------------------------------------------
Total Interest Income 118,879 169,512 516,538 828,262
Interest Expense
Deposits 17,657 35,158 84,348 217,305
Security Repurchase
Agreements 4,585 14,716 30,173 77,764
Funds Purchased 255 365 1,030 10,099
Short-Term Borrowings 217 1,549 1,489 9,562
Long-Term Debt 5,947 11,624 29,267 53,854
----------------------------------------------------------------------
Total Interest Expense 28,661 63,412 146,307 368,584
----------------------------------------------------------------------
Net Interest Income 90,218 106,100 370,231 459,678
Provision for Loan and
Lease Losses - 14,541 11,616 74,339
----------------------------------------------------------------------
Net Interest Income After
Provision for Loan and
Lease Losses 90,218 91,559 358,615 385,339
Non-Interest Income
Trust and Asset
Management 13,085 14,883 55,733 59,924
Mortgage Banking 5,152 (58) 20,452 20,133
Service Charges on
Deposit Accounts 8,326 9,058 32,617 38,467
Fees, Exchange, and
Other Service Charges 12,963 16,997 51,594 77,833
Gains on Sales of
Banking Operations,
Net of Venture
Investment Losses - 28,746 - 173,426
Investment Securities
Gains 612 68 615 32,982
Insurance 3,640 2,559 13,118 11,592
Other 7,331 6,735 25,792 34,393
----------------------------------------------------------------------
Total Non-Interest Income 51,109 78,988 199,921 448,750
Non-Interest Expense
Salaries 38,462 48,099 153,527 195,863
Pensions and Other
Employee Benefits 6,272 10,860 33,036 44,930
Net Occupancy Expense 10,638 10,897 39,149 46,344
Net Equipment Expense 11,077 14,467 41,253 53,395
Goodwill Amortization - 2,426 - 13,342
Restructuring and Other
Related Costs 385 18,464 2,364 104,794
Information Technology
Systems Replacement
Project 7,052 - 13,628 -
Other 23,581 34,736 87,878 135,462
----------------------------------------------------------------------
Total Non-Interest Expense 97,467 139,949 370,835 594,130
----------------------------------------------------------------------
Income Before Income Taxes 43,860 30,598 187,701 239,959
Provision for Income Taxes 14,952 4,278 66,521 122,164
----------------------------------------------------------------------
Net Income $28,908 $26,320 $121,180 $117,795
======================================================================
Basic Earnings Per Share $0.45 $0.35 $1.75 $1.49
Diluted Earnings Per Share $0.44 $0.34 $1.70 $1.46
Dividends Per Share $0.19 $0.18 $0.73 $0.72
Basic Weighted Average
Shares 64,154,477 75,165,102 69,385,745 78,977,011
Diluted Weighted Average
Shares 66,378,208 76,835,941 71,447,333 80,577,763
======================================================================
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition Table 3
(Unaudited)
----------------------------------------------------------------------
December 31 December 31
(dollars in thousands) 2002 2001
----------------------------------------------------------------------
Assets
Interest-Bearing Deposits $549,978 $1,101,974
Investment Securities - Held to Maturity
(Market Value of $236,016 and $407,838) 229,720 396,216
Investment Securities - Available for Sale 2,287,201 2,001,420
Funds Sold 195,000 115,000
Loans Held for Sale 40,118 456,709
Loans 5,359,004 5,657,122
Allowance for Loan and Lease Losses (142,853) (158,979)
----------------------------------------------------------------------
Net Loans 5,216,151 5,498,143
----------------------------------------------------------------------
Total Earning Assets 8,518,168 9,569,462
Cash and Non-Interest Bearing Deposits 374,352 408,807
Premises and Equipment 176,969 196,171
Customers' Acceptance Liability 2,680 593
Accrued Interest Receivable 36,722 42,687
Foreclosed Real Estate 9,434 17,174
Mortgage Servicing Rights 28,820 27,291
Goodwill 36,216 36,216
Other Assets 333,057 333,999
----------------------------------------------------------------------
Total Assets $9,516,418 $10,632,400
======================================================================
Liabilities
Domestic Deposits
Non-Interest Bearing Demand $1,719,633 $1,552,947
Interest Bearing Demand 1,169,128 956,179
Savings 2,535,219 1,937,663
Time 1,461,780 1,927,778
Foreign Deposits
Time Due to Banks 1,130 230,249
Other Savings and Time 33,271 73,404
----------------------------------------------------------------------
Total Deposits 6,920,161 6,678,220
Securities Sold Under Agreements to Repurchase 735,621 1,643,444
Funds Purchased 64,467 55,800
Current Maturities of Long-Term Debt 114,781 120,645
Short-Term Borrowings 33,420 114,247
Banker's Acceptances Outstanding 2,680 593
Retirement Benefits Payable 61,385 36,175
Accrued Interest Payable 13,731 29,762
Taxes Payable 196,813 138,366
Other Liabilities 82,596 98,401
Long-Term Debt 275,004 469,735
----------------------------------------------------------------------
Total Liabilities 8,500,659 9,385,388
Shareholders' Equity
Common Stock ($.01 par value); authorized
500,000,000 shares; issued / outstanding:
December 2002 - 81,294,730 / 63,015,442;
December 2001 - 81,377,241 / 73,218,326 806 806
Capital Surplus 372,192 367,672
Accumulated Other Comprehensive Income 11,659 22,761
Retained Earnings 1,115,910 1,055,424
Deferred Stock Grants (1,424) (7,637)
Treasury Stock, at Cost (Shares:December 2002
- 18,279,288; December 2001 - 8,158,915) (483,384) (192,014)
----------------------------------------------------------------------
Total Shareholders' Equity 1,015,759 1,247,012
----------------------------------------------------------------------
Total Liabilities and Shareholders' Equity $9,516,418 $10,632,400
======================================================================
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity (Unaudited) Table 4
----------------------------------------------------------------------
Accum.
Other
Compre-
Common Capital hensive
(dollars in thousands) Total Stock Surplus Income
----------------------------------------------------------------------
Balance at Dec.
31, 2001 $1,247,012 $ 806 $ 367,672 $ 22,761
Comprehensive Income
Net Income 121,180 -- -- --
Other Comprehensive
Income, Net of Tax
Unrealized Gain
on Investment
Securities 4,237 -- -- 4,237
Foreign Currency
Translation
Adjustment (582) -- -- (582)
Pension Liability
Adjustments (14,757) -- -- (14,757)
Total Comprehensive
Income
Common Stock Issued
43,449 Profit
Sharing Plan 1,240 -- 288 --
1,581,876 Stock
Option Plan 32,279 -- 5,352 --
101,796 Dividend
Reinvestment Plan 2,893 -- 656 --
4,792 Directors'
Restricted
Shares and
Deferred
Compensation Plan 20 -- 141 --
(91,600)Employees'
Restricted Shares 5,089 -- (1,917) --
Treasury Stock
Purchased
11,838,800 shares (332,217) -- -- --
Cash Dividends Paid (50,635) -- -- --
----------------------------------------------------------------------
Balance at
Dec. 31, 2002 $1,015,759 $ 806 $ 372,192 $ 11,659
======================================================================
Balance at
Dec. 31, 2000 $1,301,356 $ 806 $ 346,045 $ (25,079)
Comprehensive Income
Net Income 117,795 -- -- --
Other Comprehensive
Income, Net of Tax
Unrealized Gain on
Investment
Securities 20,733 -- -- 20,733
Foreign Currency
Translation
Adjustment 27,266 -- -- 27,266
Pension Liability
Adjustments (159) -- -- (159)
Total Comprehensive
Income
Common Stock Issued
59,586 Profit
Sharing Plan 1,402 -- 261 --
916,817 Stock
Option Plan 21,314 -- 1,054 --
120,397 Dividend
Reinvestment Plan 2,819 -- 495 --
5,487 Directors'
Restricted Shares
and Deferred
Compensation Plan 336 -- 121 --
727,800 Employees'
Restricted Shares 5,105 -- 18,397 --
65,146 Hawaii
Insurance Network 1,299 -- 1,299 --
Treasury Stock
Purchased
8,300,900 shares (195,687) -- -- --
Cash Dividends Paid (56,567) -- -- --
----------------------------------------------------------------------
Balance at
Dec. 31, 2001 $1,247,012 $ 806 $ 367,672 $ 22,761
======================================================================
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity (Unaudited) Table 4
----------------------------------------------------------------------
Accum.
Other
Compre-
Common Capital hensive
(dollars in thousands) Total Stock Surplus Income
----------------------------------------------------------------------
Balance at Dec.
31, 2001 $ 1,055,424 $ (7,637) $(192,014)
Comprehensive Income
Net Income 121,180 -- -- $ 121,180
Other Comprehensive
Income, Net of Tax
Unrealized Gain
on Investment
Securities -- -- -- 4,237
Foreign Currency
Translation
Adjustment -- -- -- (582)
Pension Liability
Adjustments -- -- -- (14,757)
-----------
Total Comprehensive
Income $ 110,078
===========
Common Stock Issued
43,449 Profit
Sharing Plan -- -- 952
1,581,876 Stock
Option Plan (10,057) (793) 37,777
101,796 Dividend
Reinvestment Plan (2) -- 2,239
4,792 Directors'
Restricted
Shares and
Deferred
Compensation Plan -- -- (121)
(91,600)Employees'
Restricted Shares -- 7,006
Treasury Stock
Purchased
11,838,800 shares -- -- (332,217)
Cash Dividends Paid (50,635) -- --
----------------------------------------------------------------------
Balance at
Dec. 31, 2002 $ 1,115,910 $ (1,424)$(483,384)
======================================================================
Balance at
Dec. 31, 2000 $ 996,791 $ -- $ (17,207)
Comprehensive Income
Net Income 117,795 -- -- $ 117,795
Other Comprehensive
Income, Net of Tax
Unrealized Gain on
Investment
Securities -- -- -- 20,733
Foreign Currency
Translation
Adjustment -- -- -- 27,266
Pension Liability
Adjustments -- -- -- (159)
-----------
Total Comprehensive
Income $ 165,635
===========
Common Stock Issued
59,586 Profit
Sharing Plan -- -- 1,141
916,817 Stock
Option Plan (2,591) 5,655 17,196
120,397 Dividend
Reinvestment Plan (4) -- 2,328
5,487 Directors'
Restricted Shares
and Deferred
Compensation Plan -- -- 215
727,800 Employees'
Restricted Shares -- (13,292) --
65,146 Hawaii
Insurance Network -- -- --
Treasury Stock
Purchased
8,300,900 shares -- -- (195,687)
Cash Dividends Paid (56,567) -- --
----------------------------------------------------------------------
Balance at
Dec. 31, 2001 $ 1,055,424 $ (7,637)$(192,014)
======================================================================
Bank of Hawaii Corporation and Subsidiaries
Consolidated Average Balances and Interest Rates -
Taxable Equivalent Basis (Unaudited) Table 5
----------------------------------------------------------------------
(dollars in millions)
Three Months Ended Three Months Ended (1)
December 31, 2002 December 31, 2001
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
----------------------------------------------------------------------
Earning Assets
Interest
Bearing
Deposits $ 796.6 $ 3.6 1.78% $ 1,236.2 $ 7.9 2.52%
Funds Sold 234.5 0.8 1.42 150.5 0.8 2.09
Investment
Securities
- Held-To
-Maturity 253.8 4.7 7.38 431.5 6.5 5.97
- Available
for Sale 2,273.3 22.6 3.97 2,037.5 29.3 5.75
Loans Held
For Sale 38.9 0.6 5.88 304.7 5.1 6.64
Net Loans
and Lease
Financing
Domestic
- Commercial
and Industrial 867.7 11.4 5.20 1,281.9 18.9 5.87
- Construction 131.5 1.8 5.30 175.6 2.5 5.58
- Mortgage 2,823.2 48.4 6.85 3,089.4 57.3 7.42
- Installment 875.5 17.4 7.91 724.8 18.0 9.85
- Lease
Financing 498.5 6.3 5.03 484.8 7.3 5.95
----------------------------------------------------------------------
Total
Domestic Loans 5,196.4 85.3 6.54 5,756.5 104.0 7.19
Foreign 14.0 -- 777.0 14.6 7.48
----------------------------------------------------------------------
Total Loans 5,210.4 85.3 6.52 6,533.5 118.6 7.23
Other 78.7 1.3 6.62 86.2 1.4 6.42
----------------------------------------------------------------------
Total Earning
Assets 8,886.2 118.9 5.33 10,780.1 169.6 6.26
Cash and
Non-interest
Bearing
Deposits 305.2 354.9
Other Assets 363.4 480.7
-------- ---------
Total Assets $9,554.8 $11,615.7
======== =========
Interest
Bearing
Liabilities
Domestic
Deposits
- Demand $1,099.9 1.1 0.38 $ 755.5 1.0 0.53
- Savings 2,468.2 6.4 1.03 1,977.5 8.7 1.74
- Timed 1,501.1 10.1 2.66 2,048.2 19.7 3.81
----------------------------------------------------------------------
Total
Domestic
Deposits 5,069.2 17.6 1.37 4,781.2 29.4 2.44
Foreign
Deposits
- Time Due
to Banks 2.9 -- -- 365.5 2.1 2.26
- Other Time
and Savings 39.4 0.1 1.38 445.9 3.7 3.31
----------------------------------------------------------------------
Total Foreign
Deposits 42.3 0.1 1.29 811.4 5.8 2.84
----------------------------------------------------------------------
Total Interest
Bearing
Deposits 5,111.5 17.7 1.37 5,592.6 35.2 2.49
Short-Term
Borrowings 1,053.5 5.1 1.90 1,942.5 16.6 3.40
Long-Term Debt 389.9 5.9 6.05 678.9 11.6 6.79
----------------------------------------------------------------------
Total Interest
Bearing
Liabilities 6,554.9 28.7 1.73 8,214.0 63.4 3.06
----------------------------------------------------------------------
Net Interest
Income $ 90.2 $ 106.2
Interest
Rate Spread 3.60% 3.20%
Net Interest
Margin 4.05% 3.93%
Non-Interest
Bearing
Demand
Deposits
- Domestic 1,601.0 1,401.3
- Foreign -- 328.0
-------- ---------
Total Non-Int
Bearing
Demand
Deposits 1,601.0 1,729.3
Other
Liabilities 329.3 390.3
Shareholders'
Equity 1,069.6 1,282.1
-------- ---------
Total
Liabilities
and
Shareholders'
Equity $9,554.8 $11,615.7
======== =========
Bank of Hawaii Corporation and Subsidiaries
Consolidated Average Balances and Interest Rates -
Taxable Equivalent Basis (Unaudited) Table 5
----------------------------------------------------------------------
(dollars in millions)
Year Ended Year Ended (1)
December 31, 2002 December 31, 2001
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
----------------------------------------------------------------------
Earning Assets
Interest
Bearing
Deposits $ 1,100.0 $ 20.0 1.82% $ 733.4 $ 27.6 3.76%
Funds Sold 213.8 3.5 1.64 136.8 5.0 3.63
Investment
Securities
- Held-To
-Maturity 311.7 19.9 6.38 525.6 33.8 6.42
- Available
for Sale 2,028.9 101.4 5.00 2,242.3 137.3 6.12
Loans Held
For Sale 120.2 8.0 6.65 312.2 21.4 6.86
Net Loans
and Lease
Financing
Domestic
- Commercial
and Industrial 1,010.0 52.4 5.18 1,761.6 129.7 7.36
- Construction 151.5 8.3 5.45 240.5 18.5 7.71
- Mortgage 2,933.1 204.3 6.97 3,369.5 258.0 7.66
- Installment 804.2 67.4 8.38 809.1 90.0 11.12
- Lease
Financing 498.4 25.8 5.17 525.6 29.3 5.57
----------------------------------------------------------------------
Total
Domestic Loans 5,397.2 358.2 6.64 6,706.3 525.5 7.84
Foreign 14.1 0.2 1.55 1,026.4 72.5 7.07
----------------------------------------------------------------------
Total Loans 5,411.3 358.4 6.62 7,732.7 598.0 7.73
Other 91.5 5.6 6.14 79.6 5.4 6.72
----------------------------------------------------------------------
Total Earning
Assets 9,277.4 516.8 5.57 11,762.6 828.5 7.04
Cash and
Non-interest
Bearing
Deposits 313.2 376.6
Other Assets 370.6 554.5
-------- ---------
Total Assets $9,961.2 $12,693.7
======== =========
Interest
Bearing
Liabilities
Domestic
Deposits
- Demand $1,003.8 4.1 0.41 $ 827.5 8.6 1.04
- Savings 2,263.4 29.5 1.30 1,847.2 42.0 2.27
- Timed 1,679.7 49.1 2.92 2,506.7 129.6 5.17
----------------------------------------------------------------------
Total
Domestic
Deposits 4,946.9 82.7 1.67 5,181.4 180.2 3.48
Foreign
Deposits
- Time Due
to Banks 41.7 0.7 1.87 351.3 14.5 4.13
- Other Time
and Savings 55.0 0.9 1.63 648.2 22.6 3.49
----------------------------------------------------------------------
Total Foreign
Deposits 96.7 1.6 1.73 999.5 37.1 3.71
----------------------------------------------------------------------
Total Interest
Bearing
Deposits 5,043.6 84.3 1.67 6,180.9 217.3 3.52
Short-Term
Borrowings 1,390.2 32.7 2.35 2,105.6 97.4 4.63
Long-Term Debt 471.3 29.3 6.21 800.5 53.9 6.73
----------------------------------------------------------------------
Total Interest
Bearing
Liabilities 6,905.1 146.3 2.12 9,087.0 368.6 4.06
----------------------------------------------------------------------
Net Interest
Income $370.5 $ 459.9
Interest
Rate Spread 3.45% 2.98%
Net Interest
Margin 3.99% 3.91%
Non-Interest
Bearing
Demand
Deposits
- Domestic 1,556.3 1,539.8
- Foreign -- 346.0
-------- ---------
Total Non-Int
Bearing
Demand
Deposits 1,556.3 1,885.8
Other
Liabilities 316.3 376.8
Shareholders'
Equity 1,183.5 1,344.1
-------- ---------
Total
Liabilities
and
Shareholders'
Equity $9,961.2 $12,693.7
======== =========
(1) Adjusted to reflect the reclassification of certain average
balances.
Bank of Hawaii Corporation and Subsidiaries
Loan Portfolio Balances (Unaudited) Table 6
(dollars in millions)
----------------------------------------------------------------------
Dec. 31 Sept. 30 June 30 March 31 Dec. 31
2002 2002 2002 2002 2001
----------------------------------------------------------------------
Domestic
Commercial
Commercial and
Industrial (1) $875.0 $863.3 $993.4 $1,114.9 $1,169.8
Mortgage -
Commercial (1) 591.1 616.5 562.5 617.6 640.7
Construction 127.5 146.3 148.6 161.4 169.6
Lease Financing 427.3 433.6 432.7 436.1 423.9
----------------------------------------------------------------------
Total Commercial 2,020.9 2,059.7 2,137.2 2,330.0 2,404.0
Consumer
Mortgage -
Residential 2,131.4 2,259.8 2,361.2 2,409.4 2,424.0
Home Equity 614.0 419.2 404.2 369.8 329.9
Other Consumer 493.3 421.6 403.2 389.5 399.8
Lease Financing 34.5 36.5 37.3 37.9 38.9
----------------------------------------------------------------------
Total Consumer 3,273.2 3,137.1 3,205.9 3,206.6 3,192.6
----------------------------------------------------------------------
Total Domestic 5,294.1 5,196.8 5,343.1 5,536.6 5,596.6
----------------------------------------------------------------------
Foreign 64.9 62.5 66.1 65.0 60.5
----------------------------------------------------------------------
Total Loans $5,359.0 $5,259.3 $5,409.2 $5,601.6 $5,657.1
======================================================================
(1) $42.3 million in loans were reclassified to mortgage-commercial
from commercial and industrial during the third quarter of 2002.
Selected Concentrations of Credit Exposure (Unaudited)
(dollars in millions)
----------------------------------------------------------------------
December 31, Sep. 30, Dec. 31,
2002 2002 2001
Outstand Unused Total Total Total
-ing Commitments Exposure Exposure Exposure
----------------------------------------------------------------------
Air Transportation (1)
Regional Passenger
Carriers $47.1 $10.2 $57.3 $57.2 $60.4
United States Based
Passenger Carriers 39.6 - 39.6 48.3 50.5
International Based
Passenger Carriers 32.1 - 32.1 32.2 32.5
Cargo Carriers 15.0 - 15.0 15.0 14.9
----------------------------------------------------------------------
Total Air
Transportation $133.8 $10.2 $144.0 $152.7 $158.3
======================================================================
Lodging National Hotel
Companies $23.3 $78.7 $102.0 $104.7 $123.9
Hawaii Hotels 103.4 31.9 135.3 134.6 129.4
West Pacific Hotels 44.6 - 44.6 46.9 60.0
----------------------------------------------------------------------
Total Lodging $171.3 $110.6 $281.9 $286.2 $313.3
======================================================================
Telecommunication
Companies $0.9 $25.7 $26.6 $31.1 $112.7
======================================================================
Syndicated Exposure $309.1 $693.0 $1,002.1 $1,075.8 $1,520.4
======================================================================
(1) Includes leases on 29 aircraft to 12 carriers. The largest
carrier exposure is $30.3 million on 7 aircraft, including a 737-700
and 6 commuter aircraft. The largest aircraft exposure is $15.0 on an
MD11 aircraft outfitted for cargo. Excluding 18 commuter aircraft, the
average outstanding per aircraft is $9.1 million.
Bank of Hawaii Corporation and Subsidiaries
Consolidated Non-Performing Assets and Accruing Loans Past Table 7
Due 90 Days or More (Unaudited)
----------------------------------------------------------------------
Dec. 31 Sept. 30 June 30 March 31 Dec. 31
(dollars in millions) 2002 2002 2002 2002 2001
----------------------------------------------------------------------
Non-Performing Assets
Non-Accrual Loans
Commercial Commercial
and Industrial $5.9 $6.4 $14.4 $27.4 $18.9
Mortgage - Commercial 20.3 18.1 25.3 15.1 16.3
Construction 0.5 0.9 0.7 1.0 9.3
Lease Financing 4.1 5.7 6.9 4.4 0.8
----------------------------------------------------------------------
Total Commerical 30.8 31.1 47.3 47.9 45.3
Consumer Mortgage -
Residential 13.9 14.3 14.2 15.3 15.3
Home Equity 0.3 0.2 0.1 0.4 0.1
Other Consumer - 0.1 - 0.1 0.1
----------------------------------------------------------------------
Total Consumer 14.2 14.6 14.3 15.8 15.5
----------------------------------------------------------------------
Total Non-Accrual Loans 45.0 45.7 61.6 63.7 60.8
----------------------------------------------------------------------
Non-Accrual Loans Held
For Sale - - - 7.8 1.7
Foreclosed Real Estate 9.4 17.6 17.2 19.2 17.2
----------------------------------------------------------------------
Total Non-Performing
Assets $54.4 $63.3 $78.8 $90.7 $79.7
======================================================================
Accruing Loans Past Due
90 Days or More
Commercial Commercial
and Industrial $0.2 $- $- $0.2 $0.1
Mortgage - Commercial 0.3 - - 1.2 -
Lease Financing - - 0.1 0.1 -
----------------------------------------------------------------------
Total Commerical 0.5 - 0.1 1.5 0.1
Consumer Mortgage -
Residential 0.6 1.4 0.9 2.1 3.7
Home Equity - - - - 0.1
Other Consumer 0.7 0.3 0.5 0.7 0.9
Lease Financing - - - - 0.1
----------------------------------------------------------------------
Total Consumer 1.3 1.7 1.4 2.8 4.8
----------------------------------------------------------------------
Total Accruing and Past
Due $1.8 $1.7 $1.5 $4.3 $4.9
======================================================================
Total Loans $5,359.0 $5,259.3 $5,409.2 $5,601.6 $5,657.1
======================================================================
Ratio of Non-Accrual
Loans to Total Loans 0.84% 0.87% 1.14% 1.14% 1.07%
----------------------------------------------------------------------
Ratio of Non-Performing Assets to
Total Loans, Foreclosed
Real Estate and Non-
Performing Loans Held
for Sale 1.01% 1.20% 1.45% 1.61% 1.40%
----------------------------------------------------------------------
Ratio of Non-Performing Assets and
Accruing Loans
Past Due 90 Days or More
to Total Loans 1.05% 1.24% 1.48% 1.70% 1.50%
----------------------------------------------------------------------
Quarter to Quarter Changes in Non-
Performing Assets
Balance at Beginning of
Quarter $63.3 $78.8 $90.7 $79.7 $106.4
Additions 12.0 7.0 20.5 36.4 43.8
Reductions Payments
and Sales of Loans (6.9) (8.5) (20.6) (12.9) (40.9)
Return to Accrual (1.9) (9.1) (6.2) (6.3) (3.6)
Sales of Foreclosed
Assets (9.4) (1.4) (3.5) (0.9) (21.9)
Charge-offs (2.7) (3.5) (2.1) (5.3) (4.1)
----------------------------------------------------------------------
Total Reductions (20.9) (22.5) (32.4) (25.4) (70.5)
----------------------------------------------------------------------
Balance at End of Quarter $54.4 $63.3 $78.8 $90.7 $79.7
======================================================================
Bank of Hawaii Corporation and Subsidiaries
Consolidated Allowance for Loan and Lease Losses (Unaudited) Table 8
(dollars in millions)
----------------------------------------------------------------------
Three Months Ended Year Ended
Dec. 31 Sept. 30 Dec. 31 Dec. 31
2002 2002 2001 2002 2001
----------------------------------------------------------------------
Balance at Beginning of
Period $154.5 $159.0 $182.5 $159.0 $246.2
Loans Charged-Off
Commercial Commercial
& Industrial (2.0) (0.9) (9.7) (13.0) (97.7)
Mortgage- Commercial - (2.5) (3.3) (2.9) (19.4)
Construction - - - (0.5) -
Lease Financing (9.6) (0.1) (0.2) (9.9) (0.7)
Consumer Mortgage-
Residential (0.4) (0.6) (3.2) (3.5) (8.9)
Home Equity (0.1) - (0.2) (0.2) (0.6)
Other Consumer (2.8) (3.0) (5.1) (12.5) (19.2)
Lease Financing (0.1) (0.1) (0.2) (0.3) (0.5)
Foreign - - (4.0) - (22.0)
----------------------------------------------------------------------
Total Charge-Offs (15.0) (7.2) (25.9) (42.8) (169.0)
Recoveries on Loans
Previously Charged-Off
Commercial
Commercial &
Industrial 1.4 0.7 1.4 4.7 9.2
Mortgage-Commercial 0.1 - 0.8 2.1 3.2
Construction 0.2 - - 0.2 -
Lease Financing - - - - 0.3
Consumer Mortgage-
Residential 0.3 0.1 0.3 1.1 1.0
Home Equity - - - 0.1 0.1
Other Consumer 1.3 1.5 2.4 6.1 8.1
Lease Financing 0.1 - - 0.1 0.1
Foreign - 0.4 6.5 0.7 25.6
----------------------------------------------------------------------
Total Recoveries 3.4 2.7 11.4 15.1 47.6
----------------------------------------------------------------------
Net Loan Charge-Offs (11.6) (4.5) (14.5) (27.7) (121.4)
Provision for Loan and
Lease Losses - - 14.5 11.6 74.3
Allowance Related to
Disposition - - (23.7) - (40.2)
Foreign Currency
Translation - - 0.2 - 0.1
----------------------------------------------------------------------
Balance at End of Period $142.9 $154.5 $159.0 $142.9 $159.0
======================================================================
Average Loans
Outstanding $5,210.4 $5,350.0 $6,533.5 $5,411.3 $7,732.7
======================================================================
Ratio of Net Charge-Offs
to Average Loans
Outstanding
(annualized) 0.88% 0.33% 0.88% 0.51% 1.57%
Ratio of Allowance to
Loans Outstanding 2.67% 2.94% 2.81% 2.67% 2.81%
Bank of Hawaii Corporation and Subsidiaries
Deposits (Unaudited)
(dollars in millions) Table 9
----------------------------------------------------------------------
Dec. 31 Sept. 30 June 30 March 31 Dec. 31
2002 2002 2002 2002 2001
----------------------------------------------------------------------
Domestic
Non-Interest
Bearing Demand $1,719.6 $1,593.8 $1,466.1 $1,593.0 $1,552.9
Interest Bearing
Demand 1,169.2 1,042.9 986.5 933.8 956.2
Savings 2,535.2 2,403.2 2,292.4 2,089.2 1,937.7
Time 1,461.8 1,549.7 1,652.8 1,807.0 1,927.8
----------------------------------------------------------------------
Total Domestic 6,885.8 6,589.6 6,397.8 6,423.0 6,374.6
Foreign 34.4 38.1 58.2 120.8 303.6
----------------------------------------------------------------------
Total Deposits $6,920.2 $6,627.7 $6,456.0 $6,543.8 $6,678.2
======================================================================
Bank of Hawaii Corporation and Subsidiaries
Information Technology Systems Table
Replacement Project (Unaudited) 10
(dollars in millions)
----------------------------------------------------------------------
Pro- Employee Acceler- Other
fessional Termina- ated Associ-
Fees tion Deprecia- ated
Benefits tion Costs(1) Total
----------------------------------------------------------------------
Costs Incurred
Three Months Ended:
September 30, 2002 $1.9 $1.0 $3.2 $0.5 $6.6
December 31, 2002 3.2 0.2 2.2 1.4 7.0
----------------------------------------------------------------------
Year Ended
December 31,
2002 $5.1 $1.2 $5.4 $1.9 $13.6
======================================================================
Total Expected
Project Costs $12.7 $6.6 $9.2 $7.0 $35.5
======================================================================
(1) Includes contract termination, equipment, excise
tax, and other costs.
Bank of Hawaii Corporation and Subsidiaries
Quarterly Summary of Selected Consolidated
Financial Data (Unaudited) Table 11
----------------------------------------------------------------------
(dollars in millions except per share amounts)
Dec. 31 Sep. 30 Jun. 30 Mar. 31
2002 2002 2002 2002
----------------------------------------------------------------------
Balance Sheet Totals
Total Assets $9,516.4 $9,702.7 $9,824.1 $10,245.0
Net Loans 5,216.2 5,104.9 5,250.2 5,442.6
Total Deposits 6,920.2 6,627.7 6,456.0 6,543.8
Total Shareholders' Equity 1,015.8 1,100.7 1,191.1 1,265.9
Quarterly Operating Results
Net Interest Income $90.2 $92.2 $92.9 $94.9
Provision for Loan and
Lease Losses - - 3.3 8.3
Non-Interest Income 51.1 47.4 48.2 53.2
Gain on Sales of Banking
Operations, Net of
Venture Investment Losses - - - -
Non-Interest Expense 90.1 85.5 89.6 89.6
Restructuring and Other
Related Costs 0.4 - - 2.0
Information Technology
System Replacement
Project 7.0 6.6 - -
Net Income 28.9 30.2 31.0 31.1
Basic Earnings Per Share $0.45 $0.44 $0.43 $0.42
Diluted Earnings Per Share $0.44 $0.43 $0.42 $0.41
Return on Average Assets 1.20% 1.22% 1.23% 1.21%
Return on Average Equity 10.72% 10.40% 9.94% 9.97%
Efficiency Ratio 68.97% 65.99% 63.51% 61.86%
Continuing Business
Operating Results( 1)
Net Interest Income $90.2 $92.2 $92.9 $94.9
Provision for Loan
and Lease Losses - - 3.3 8.3
Non-Interest Income 51.1 47.4 48.2 53.3
Non-Interest Expense 90.0 85.5 89.6 89.7
Net Income 33.8 34.4 31.0 32.3
Diluted Earnings Per Share $0.51 $0.49 $0.42 $0.43
Return on Average Equity 12.54% 11.84% 9.94% 10.37%
Efficiency Ratio 63.70% 61.28% 63.51% 60.53%
Bank of Hawaii Corporation and Subsidiaries
Quarterly Summary of Selected Consolidated
Financial Data (Unaudited) Table 11
----------------------------------------------------------------------
(dollars in millions except per share amounts)
Dec. 31 Sep. 30 Jun. 30 Mar. 31
2001 2001 2001 2001
----------------------------------------------------------------------
Balance Sheet Totals
Total Assets $10,632.4 $11,947.4 $12,791.6 $13,743.7
Net Loans 5,498.1 6,586.8 7,454.1 8,257.8
Total Deposits 6,678.2 7,403.0 8,144.6 8,848.6
Total Shareholders' Equity 1,247.0 1,371.1 1,395.7 1,371.9
Quarterly Operating Results
Net Interest Income $106.1 $111.7 $116.7 $125.2
Provision for Loan and
Lease Losses 14.5 0.9 6.4 52.5
Non-Interest Income 50.3 64.8 72.5 87.8
Gain on Sales of Banking
Operations, Net of
Venture Investment Losses 28.7 47.8 24.8 72.1
Non-Interest Expense 121.4 118.8 121.7 127.4
Restructuring and Other
Related Costs 18.5 3.0 38.9 44.4
Information Technology
System Replacement
Project - - - -
Net Income 26.3 31.1 26.7 33.7
Basic Earnings Per Share $0.35 $0.39 $0.33 $0.42
Diluted Earnings Per Share $0.34 $0.37 $0.32 $0.42
Return on Average Assets 0.90% 1.00% 0.83% 0.99%
Return on Average Equity 8.14% 8.88% 7.69% 10.42%
Efficiency Ratio 75.61% 54.31% 75.07% 60.24%
Continuing Business
Operating Results(1)
Net Interest Income $93.8 $91.0 $87.8 $92.2
Provision for Loan
and Lease Losses 16.6 6.4 2.6 12.1
Non-Interest Income 42.9 53.0 54.2 54.0
Non-Interest Expense 98.4 87.6 88.6 85.8
Net Income 21.3 31.4 32.6 28.3
Diluted Earnings Per Share $0.28 $0.38 $0.39 $0.35
Return on Average Equity 6.59% 8.96% 9.37% 8.76%
Efficiency Ratio 71.99% 60.83% 62.40% 58.71%
(1) Excludes the effects of the businesses that were divested in
2001, restructuring, non-core transactions and costs associated with
the information technology system replacement project. 2001 Quarterly
information has been reclassified to conform to December 31, 2001
presentation and excludes goodwill amortization.
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion