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Bank Of Hawaii Corporation First Quarter 2016 Financial Results

The following excerpt is from the company's SEC filing.

Diluted Earnings Per Share $1.16

Net Income $50.2 Million

Board of Directors Increases Dividend to $0.48 Per Share

Board of Directors Increases Share Repurchase Authorization $100 Million

FOR IMMEDIATE RELEASE

HONOLULU, HI

(April 25, 2016) -- 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 mill ion 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.”

- more -

Bank of Hawaii Corporation First Quarter 2016 Financial Results Page 2

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.

Bank of Hawaii Corporation First Quarter 2016 Financial Results Page 3

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.

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Bank of Hawaii Corporation First Quarter 2016 Financial Results Page 4

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.

Bank of Hawaii Corporation First Quarter 2016 Financial Results Page 5

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,

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,

Bank of Hawaii Corporation and Subsidiaries

Three Months Ended

(dollars in thousands, except per share amounts)

For the Period:

Operating Results

Net Interest Income

103,024

101,644

96,770

Provision for Credit Losses

(2,000

Total Noninterest Income

56,207

44,766

52,307

Total Noninterest Expense

87,386

85,727

86,915

50,210

42,832

42,442

Basic Earnings Per Share

Dividends Declared Per Share

Performance Ratios

Return on Average Assets

Return on Average Shareholders' Equity

Efficiency Ratio

Net Interest Margin

Dividend Payout Ratio

Average Shareholders' Equity to Average Assets

Average Balances

Average Loans and Leases

7,940,097

7,785,346

7,053,061

15,537,073

15,335,574

14,946,037

Average Deposits

13,334,550

13,038,637

12,786,449

1,129,561

1,102,548

1,064,112

Per Share of Common Stock

Book Value

Tangible Book Value

Market Value

Closing

High

Low

As of Period End:

Balance Sheet Totals

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

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

Capital Ratios

Common Equity Tier 1 Capital Ratio

Total Capital Ratio

Total Shareholders' Equity to Total Assets

Tangible Common Equity to Tangible Assets

Tangible Common Equity to Risk-Weighted Assets

Non-Financial Data

Full-Time Equivalent Employees

Branches

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

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

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

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."

(dollars in thousands)

Goodwill

31,517

1,107,236

1,084,743

1,043,734

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

Tangible Common Equity to Tangible Assets (Non-GAAP)

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

Consolidated Statements of Income

Table 3

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

Funds Sold

Other

Total Interest Income

113,069

111,370

106,130

Interest Expense

Securities Sold Under Agreements to Repurchase

Funds Purchased

Other Debt

Total Interest Expense

10,045

Net Interest Income After Provision for Credit Losses

105,024

100,644

Trust and Asset Management

11,256

11,243

12,180

Mortgage Banking

Service Charges on Deposit Accounts

Fees, Exchange, and Other Service Charges

13,444

13,764

12,897

Investment Securities Gains, Net

11,180

10,231

Annuity and Insurance

Bank-Owned Life Insurance

Salaries and Benefits

50,514

47,997

49,780

Net Occupancy

Net Equipment

Data Processing

Professional Fees

FDIC Insurance

15,518

17,379

14,267

Income Before Provision for Income Taxes

73,845

59,683

62,162

23,635

16,851

19,720

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

Consolidated Statements of Comprehensive Income

Table 4

Other Comprehensive Income (Loss), Net of Tax:

Net Unrealized Gains (Losses) on Investment Securities

(6,860

Defined Benefit Plans

Total Other Comprehensive Income (Loss)

(2,265

59,045

40,567

47,956

Consolidated Statements of Condition

Table 5

Interest-Bearing Deposits in Other Banks

626,206

592,892

620,331

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

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

Mortgage Servicing Rights

22,663

23,002

23,643

Goodwill

269,723

268,175

264,228

Other Assets

192,562

199,392

235,292

Liabilities

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

Short-Term Borrowings

586,785

628,857

672,329

Other Debt

Retirement Benefits Payable

47,408

47,374

55,197

Accrued Interest Payable

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

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)

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;

(738,742

(719,059

(695,634

Total Liabilities and Shareholders' Equity

Consolidated Statements of Shareholders' Equity

Table 6

Accum.

Compre-

Common Shares

Balance as of December 31, 2015

Share-Based Compensation

Common Stock Issued under Purchase and Equity

Compensation Plans and Related Tax Benefits

141,083

Common Stock Repurchased

(342,733

(21,458

Cash Dividends Declared ($0.45 per share)

(19,464

Balance as of March 31, 2016

Balance as of December 31, 2014

43,724,208

531,932

(26,686

1,234,801

(685,535

1,055,086

155,646

(227,226

(13,144

(19,684

Balance as of March 31, 2015

Average Balances and Interest Rates - Taxable-Equivalent Basis

Table 7

March 31, 2016

December 31, 2015

March 31, 2015

Income/

Yield/

(dollars in millions)

Taxable

1,588.5

1,573.3

1,560.8

Non-Taxable

3,679.6

3,827.9

4,140.9

Total Investment Securities

6,228.6

6,366.3

6,674.1

Commercial and Industrial

1,127.4

1,155.2

1,130.5

Commercial Mortgage

1,689.2

1,653.9

1,449.5

Construction

Commercial Lease Financing

Residential Mortgage

2,918.5

2,895.3

2,631.3

Home Equity

1,103.5

1,027.4

Automobile

Total Loans and Leases

7,940.1

7,785.3

7,053.1

Total Earning Assets

14,871.4

14,669.9

14,283.7

15,537.1

15,335.6

14,946.0

Interest-Bearing Liabilities

2,761.6

2,653.2

2,577.1

5,137.6

5,028.8

4,941.0

1,208.4

1,178.2

1,378.3

Total Interest-Bearing Deposits

9,107.6

8,860.2

8,896.4

Total Interest-Bearing Liabilities

9,950.6

9,805.2

9,756.8

Interest Rate Spread

Noninterest-Bearing Demand Deposits

4,227.0

4,178.4

3,890.0

1,129.6

1,102.5

1,064.1

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.

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

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.

Analysis of Change in Net Interest Income - Taxable-Equivalent Basis

Table 8a

Three Months Ended March 31, 2016

Compared to December 31, 2015

Volume

Change in Interest Income:

Taxable

Non-Taxable

Commercial and Industrial

Commercial Mortgage

Construction

Commercial Lease Financing

Residential Mortgage

Home Equity

Automobile

Total Change in Interest Income

Change in Interest Expense:

Demand

Total Change in Interest Expense

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.

Table 8b

Compared to March 31, 2015

29,141

29,356

27,914

Incentive Compensation

Commission Expense

Retirement and Other Benefits

Payroll Taxes

Medical, Dental, and Life Insurance

Separation Expense

Total Salaries and Benefits

Loan and Lease Portfolio Balances

September 30,

June 30,

1,180,341

1,115,168

1,169,817

1,173,259

1,141,408

1,687,199

1,677,147

1,622,119

1,528,685

1,477,902

192,909

156,660

129,254

118,714

111,381

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

2,929,388

2,925,605

2,875,605

2,787,847

2,699,434

1,131,796

1,069,400

993,817

931,191

884,742

399,825

381,735

367,640

352,128

339,686

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

7,689,772

7,428,438

6,568,651

6,445,510

6,254,862

6,221,691

6,220,391

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

12,936,962

13,090,695

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

Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More

Non-Accrual Loans and Leases

13,719

14,598

14,749

14,918

14,344

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

Total Non-Performing Assets

29,545

29,450

Total Accruing Loans and Leases Past Due 90 Days or More

Restructured Loans on Accrual Status

and Not Past Due 90 Days or More

50,707

49,430

49,506

48,339

46,639

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases

Ratio of Non-Performing Assets to Total Loans and Leases

and Foreclosed Real Estate

Ratio of Commercial Non-Performing Assets to Total Commercial

Loans and Leases and Commercial Foreclosed Real Estate

Ratio of Consumer Non-Performing Assets to Total Consumer Loans

and Leases and Consumer Foreclosed Real Estate

Ratio of Non-Performing Assets and Accruing Loans and Leases

Past Due 90 Days or More to Total Loans and Leases

Quarter to Quarter Changes in Non-Performing Assets

Balance at Beginning of Quarter

30,082

Additions

Reductions

Payments

(6,012

(2,473

(1,191

(1,020

(1,427

Return to Accrual Status

(4,272

(1,748

Sales of Foreclosed Real Estate

(1,300

Charge-offs/Write-downs

Total Reductions

(10,788

(3,097

(4,332

(1,236

(1,926

Balance at End of Quarter

Reserve for Credit Losses

Balance at Beginning of Period

108,952

110,110

114,575

Loans and Leases Charged-Off

(1,560

(1,719

(1,428

(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

Total Recoveries on Loans and Leases Previously Charged-Off

Net Loans and Leases Recovered (Charged-Off)

(2,158

(1,227

Provision for Unfunded Commitments

Balance at End of Period

111,249

113,348

Components

Reserve for Unfunded Commitments

Total Reserve for Credit Losses

Average Loans and Leases Outstanding

Ratio of Net Loans and Leases Charged-Off (Recovered) to

Average Loans and Leases Outstanding (annualized)

Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding

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.

Business Segments Selected Financial Information

58,010

38,348

(6,626

55,175

44,974

(1,583

20,807

14,024

13,776

(52,741

(17,268

(15,427

(1,950

(87,386

23,241

35,306

10,243

(8,227

(12,656

(1,870

(23,635

15,014

22,650

Total Assets as of March 31, 2016

4,763,749

3,196,413

284,891

7,409,642

Three Months Ended March 31, 2015

48,349

34,274

(1,251

46,626

34,738

11,098

19,108

14,726

12,822

(50,340

(17,886

(14,590

(4,099

(86,915

15,394

22,503

19,821

(5,526

(7,865

(1,644

(4,685

(19,720

14,638

15,136

Total Assets as of March 31, 2015

4,239,641

2,910,911

188,399

7,800,228

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

Selected Quarterly Financial Data

Table 14

Quarterly Operating Results

75,874

73,565

Income on Investment Securities

10,192

10,273

20,689

22,832

107,360

107,250

97,891

97,782

11,907

12,355

13,340

13,352

43,221

45,925

46,576

47,610

24,788

14,527

91,888

83,574

49,224

60,133

14,948

18,979

34,276

41,154

15,164,123

15,248,043

1,098,354

1,082,939

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

Hawaii Economic Trends

Two Months Ended

Year Ended

($ in millions; jobs in thousands)

February 29, 2016

December 31, 2014

State General Fund Revenues

1,063.5

5,998.6

5,535.7

General Excise and Use Tax Revenue

3,141.5

2,979.8

Jobs

(spot rates)

Unemployment

Statewide, seasonally adjusted

Oahu

Island of Hawaii

Maui

Kauai

(percentage change, except months of inventory)

Housing Trends (Single Family Oahu)

Median Home Price

Home Sales Volume (units)

Months of Inventory

Monthly Visitor Arrivals,

Percentage Change

(in thousands)

Not Seasonally Adjusted

from Previous Year

Tourism

January 31, 2016

November 30, 2015

October 31, 2015

September 30, 2015

August 31, 2015

July 31, 2015

June 30, 2015

May 31, 2015

April 30, 2015

February 28, 2015

January 31, 2015

November 30, 2014

October 31, 2014

September 30, 2014

August 31, 2014

July 31, 2014

June 30, 2014

May 31, 2014

April 30, 2014

March 31, 2014

February 28, 2014

January 31, 2014

Source: Hawaii Department of Business, Economic Development & Tourism

Source: U. S. Bureau of Labor

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

Source: Honolulu Board of REALTORS

Source: Hawaii Tourism Authority

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

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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