Bank of Hawaii Corporation (NYSE:BOH) today reported diluted earnings per share of $0.87 for the first quarter of 2014, down from $0.88 in the previous quarter and up from $0.81 in the same quarter last year. Net income for the first quarter of 2014 was $38.6 million, a decrease of $0.5 million compared with net income of $39.1 million in the fourth quarter of 2013, and up $2.6 million from net income of $36.0 million in the first quarter of 2013.

Loan and lease balances increased to $6.2 billion at March 31, 2014, up 1.9 percent from December 31, 2013 and 7.4 percent compared with March 31, 2013. Deposit growth remained strong during the quarter, increasing 1.1 percent from December 31, 2013 and 7.0 percent from March 31, 2013. The net interest margin increased to 2.87 percent during the first quarter of 2014 compared with 2.85 percent in the previous quarter and 2.82 percent in the same quarter last year.

“Bank of Hawaii Corporation had a good start in 2014 with solid performance in the first quarter,” said Peter S. Ho, Chairman, President, and CEO. “Our balance sheet remains strong and we maintained our disciplined approach to risk and capital management. Our loan and deposit balances continued to grow during the quarter and we are continuing to see the benefits of our expense initiatives.”

The return on average assets for the first quarter of 2014 was 1.12 percent, unchanged from the previous quarter and up from 1.08 percent in the same quarter last year. The return on average equity for the first quarter of 2014 was 15.15 percent compared with 15.36 percent in the fourth quarter of 2013 and 14.10 percent in the first quarter of 2013. The efficiency ratio during the first quarter of 2014 was 60.54 percent compared with 59.99 percent in the previous quarter and 61.90 percent in the same quarter last year.

Financial Highlights

Net interest income, on a taxable-equivalent basis, for the first quarter of 2014 was $96.1 million, up $1.3 million from net interest income of $94.8 million in the fourth quarter of 2013, and up $5.1 million from net interest income of $91.0 million in the first quarter of 2013. Analyses of the changes in net interest income are included in Tables 8a and 8b.

The net interest margin was 2.87 percent for the first quarter of 2014, an increase of 2 basis points compared with the net interest margin of 2.85 percent in the fourth quarter of 2013, and a 5 basis point increase from 2.82 percent in the first quarter of 2013.

Noninterest income was $44.8 million for the first quarter of 2014, a decrease of $0.5 million compared with noninterest income of $45.3 million in the fourth quarter of 2013, and a decrease of $3.0 million compared with noninterest income of $47.8 million in the first quarter of 2013. Noninterest income included a gain of $2.0 million resulting from the sale of 22,000 Visa Class B shares (9,253 Class A equivalents) during the first quarter of 2014. The Company also contributed 5,500 Visa Class B shares to the Bank of Hawaii Foundation. The contribution had no impact on noninterest expense; however, the contribution did favorably impact the effective tax rate for the first quarter of 2014. As of March 31, 2014, the Company has 482,114 Visa Class B shares remaining (202,777 Class A equivalents). Noninterest income in the first quarter of 2014 included mortgage banking revenue of $2.0 compared with mortgage banking revenue of $2.8 million in the previous quarter and $6.4 million in the same quarter last year.

Noninterest expense was $83.5 million in the first quarter of 2014, up $1.1 million from noninterest expense of $82.4 million in the fourth quarter of 2013, and down $0.8 million from noninterest expense of $84.4 million in the same quarter last year. Noninterest expense in the first quarter of 2014 included seasonal payroll-related expenses resulting from annual payments from the Company’s incentive compensation plans and higher payroll taxes, and a $0.7 million increase in operating losses. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the first quarter of 2014 was 29.13 percent compared with 28.96 percent in the previous quarter and 30.74 percent during the same quarter last year.

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 overall asset quality remained stable during the first quarter of 2014. Total non-performing assets decreased to $37.0 million at March 31, 2014, down $2.6 million from non-performing assets of $39.7 million at December 31, 2013 and down $1.3 million from non-performing assets of $38.4 million at March 31, 2013. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.60 percent at the end of the first quarter of 2014, down from 0.65 percent at the end of the fourth quarter of 2013, and down from 0.66 percent at the end of the first quarter last year. Non-performing assets remain above historical levels due to the lengthy judicial foreclosure process for residential mortgage loans.

Accruing loans and leases past due 90 days or more were $9.7 million at March 31, 2014, down from $9.9 million at December 31, 2013 and $11.7 million at March 31, 2013. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $44.5 million at March 31, 2014 and primarily comprised of residential mortgages with lowered monthly payments to accommodate the borrowers’ financial needs for a period of time. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loan and lease charge-offs during the first quarter of 2014 were $1.3 million or 0.09 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $4.0 million were partially offset by recoveries of $2.7 million. Net charge-offs in the fourth quarter of 2013 were $8.2 million, or 0.54 percent annualized of total average loans and leases outstanding, and were comprised of $10.4 million in charge-offs partially offset by recoveries of $2.2 million. Net charge-offs during the first quarter of 2013 were $2.0 million, or 0.14 percent annualized of total average loans and leases outstanding, and were comprised of $5.3 million in charge-offs partially offset by recoveries of $3.3 million.

The allowance for loan and lease losses was $114.1 million at March 31, 2014, down $1.3 million from the allowance for loan and lease losses of $115.5 million at December 31, 2013 and down $12.8 million from the allowance for loan and lease losses of $126.9 million at March 31, 2013. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.84 percent at March 31, 2014, a decrease of 5 basis points from the previous quarter and down 35 basis points from the same quarter last year. The reserve for unfunded commitments at March 31, 2014 was $6.0 million, down from $6.1 million at December 31, 2013 and up from $5.4 million at March 31, 2013. 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 $14.26 billion at March 31, 2014, up from $14.08 billion at December 31, 2013 and $13.53 billion at March 31, 2013. Average total assets were $14.03 billion during the first quarter of 2014, an increase from average total assets of $13.86 billion during the previous quarter and average total assets of $13.56 billion during the same quarter last year.

The investment securities portfolio was $6.97 billion at March 31, 2014, down from $6.99 billion at December 31, 2013, and up from $6.89 billion at March 31, 2013. The portfolio remains largely comprised of securities issued by U. S. government agencies and included $4.78 billion in securities held to maturity and $2.19 billion in securities available for sale at March 31, 2014.

Total loans and leases were $6.21 billion at March 31, 2014, up from $6.10 billion at December 31, 2013 and $5.78 billion at March 31, 2013. Average total loans and leases were $6.10 billion during the first quarter of 2014, up from $6.05 billion during the fourth quarter of 2013, and up from $5.80 billion during the same quarter last year.

The commercial loan portfolio was $2.57 billion at the end of the first quarter of 2014, up 1.7 percent from commercial loans of $2.53 billion at the end of the fourth quarter of 2013 and up 10.6 percent from commercial loans of $2.33 billion at the end of the same quarter last year. Adjusted for a lessee’s exercise of the early buy-out option on an aircraft leveraged lease during the first quarter of 2014, commercial loans would have been up 2.5 percent compared to the previous quarter.

Consumer loans were $3.64 billion at the end of the first quarter of 2014, up 2.0 percent from consumer loans of $3.57 billion at the end of the fourth quarter of 2013 and up from $3.46 billion at the end of the same quarter last year. Loan and lease portfolio balances, including the higher risk loans and leases outstanding, are summarized in Table 10.

Total deposits increased to $12.04 billion at March 31, 2014 compared with $11.91 billion at December 31, 2013 and $11.25 billion at March 31, 2013. Average total deposits were $11.81 billion during the first quarter of 2014, up from $11.57 billion during the previous quarter and $11.29 billion during the same quarter last year. Consumer deposits increased 2.2 percent from the previous quarter and 6.3 percent compared with the first quarter last year. Commercial deposits were down 1.5 percent from the previous quarter due to a decline in savings deposits and were up 5.2 percent compared with the first quarter last year. Other deposits increased 5.5 percent from the previous quarter and 17.9 percent compared with the same quarter last year. Deposit balances are summarized in Tables 7 and 10.

Long-term debt was $174.7 million at March 31, 2014, essentially unchanged from December 31, 2013 and down slightly from $177.4 million at March 31, 2013. The Company maintains long-term debt primarily for asset/liability management purposes.

During the first quarter of 2014, the Company repurchased 214.5 thousand shares of common stock at a total cost of $12.5 million under its share repurchase program. The average cost was $58.23 per share repurchased. From April 1 through April 17, 2014, the Company repurchased an additional 45.5 thousand shares of common stock at an average cost of $59.03 per share. From the beginning of the share repurchase program initiated during July 2001 through March 31, 2014, the Company has repurchased 51.1 million shares and returned over $1.8 billion to shareholders at an average cost of $36.63 per share. Remaining buyback authority under the share repurchase program was $21.5 million at March 31, 2014.

Total shareholders’ equity increased to $1.03 billion at March 31, 2014, up from $1.01 billion at December 31, 2013 and up slightly from March 31, 2013. The ratio of tangible common equity to risk-weighted assets was 15.51 percent at the end of the first quarter of 2014, compared with 15.49 percent at the end of the fourth quarter of 2013, and 17.04 percent at the end of the first quarter last year. The Tier 1 leverage ratio at March 31, 2014 was 7.06 percent compared with 7.07 percent at December 31, 2013, and 6.90 percent at March 31, 2013.

The Company’s Board of Directors declared a quarterly cash dividend of $0.45 per share on the Company’s outstanding shares. The dividend will be payable on June 13, 2014 to shareholders of record at the close of business on May 30, 2014.

Hawaii Economy

General economic conditions in Hawaii remain positive, led by a healthy tourism industry, a growing construction industry, relatively low unemployment, and rising real estate prices. For the first two months of 2014, total visitor arrivals decreased 2.1 percent and visitor spending decreased 2.8 percent compared to the same period in 2013. Following a record level of visitor arrivals in 2013, the current visitor numbers and spending still reflect a healthy tourism industry despite the year-over-year decline. The statewide seasonally adjusted unemployment rate was at 4.5 percent in March 2014, compared to 6.7 percent nationally. For the first quarter of 2014, the volume of single-family home sales on Oahu increased 1.9 percent compared with the same period in 2013 and the volume of condominium sales on Oahu increased 1.7 percent compared with the same period in 2013. The median price of single-family home sales on Oahu was 9.2 percent higher for the first three months of 2014 compared to the same period in 2013, while the median price of condominium sales on Oahu was 1.5 percent higher compared to the same period in 2013. As of March 31, 2014, months of inventory of single-family homes and condominiums on Oahu remained low at approximately 2.6 months and 3.2 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 6:00 p.m. Eastern Time (12:00 p.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. Conference call participants located in the United States or Canada should dial 1 (800) 708-4540. All other international conference call participants should dial 1 (847) 619-6397. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning on Monday, April 21, 2014 by dialing 1 (888) 843-7419 in the United States or Canada and 1 (630) 652-3042 from other international locations. Enter the pass code number 36975883# when prompted. A replay of the conference call will also 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, 2013, 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 website, www.boh.com.

Bank of Hawaii Corporation and Subsidiaries
Financial Highlights Table 1a
          Three Months Ended
March 31,   December 31, March 31,
(dollars in thousands, except per share amounts)           2014     2013   2013

For the Period:

Operating Results
Net Interest Income $ 93,233 $ 92,120 $ 88,560
Provision for Credit Losses - - -
Total Noninterest Income 44,768 45,278 47,778
Total Noninterest Expense 83,547 82,424 84,387
Net Income 38,592 39,055 35,980
Basic Earnings Per Share 0.87 0.88 0.81
Diluted Earnings Per Share 0.87 0.88 0.81
Dividends Declared Per Share 0.45 0.45 0.45
 
Performance Ratios
Return on Average Assets 1.12 % 1.12 % 1.08 %
Return on Average Shareholders' Equity 15.15 15.36 14.10
Efficiency Ratio 1 60.54 59.99 61.90
Net Interest Margin 2 2.87 2.85 2.82
Dividend Payout Ratio 3 51.72 51.14 55.56
Average Shareholders' Equity to Average Assets 7.36 7.28 7.63
 
Average Balances
Average Loans and Leases $ 6,104,041 $ 6,053,607 $ 5,803,503
Average Assets 14,033,949 13,864,914 13,557,358
Average Deposits 11,814,548 11,571,905 11,287,485
Average Shareholders' Equity 1,033,413 1,008,813 1,034,843
 
Per Share of Common Stock
Book Value $ 23.14 $ 22.75 $ 22.87
Tangible Book Value 22.43 22.04 22.17
Market Value
Closing 60.61 59.14 50.81
High 61.36 59.92 50.91
Low 54.16 53.16 44.88
 
March 31, December 31, March 31,
              2014     2013   2013

As of Period End:

Balance Sheet Totals
Loans and Leases $ 6,209,857 $ 6,095,387 $ 5,782,969
Total Assets 14,263,118 14,084,280 13,525,667
Total Deposits 12,044,473 11,914,656 11,251,860
Long-Term Debt 174,695 174,706 177,427
Total Shareholders' Equity 1,028,904 1,011,976 1,026,104
 
Asset Quality
Allowance for Loan and Lease Losses $ 114,126 $ 115,454 $ 126,878
Non-Performing Assets 37,048 39,650 38,374
 
Financial Ratios
Allowance to Loans and Leases Outstanding 1.84 % 1.89 % 2.19 %
Tier 1 Capital Ratio 15.47 15.55 16.12
Total Capital Ratio 16.73 16.81 17.38
Tier 1 Leverage Ratio 7.06 7.07 6.90
Total Shareholders' Equity to Total Assets 7.21 7.19 7.59
Tangible Common Equity to Tangible Assets 4 7.01 6.98 7.37
Tangible Common Equity to Risk-Weighted Assets 4 15.51 15.49 17.04
 
Non-Financial Data
Full-Time Equivalent Employees 2,181 2,196 2,269
Branches and Offices 74 74 75
ATMs 458 466 489
 
 
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 1b “Reconciliation of Non-GAAP Financial Measures.”

 
Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures Table 1b
      March 31,     December 31, March 31,
(dollars in thousands)     2014     2013   2013
 
Total Shareholders' Equity $ 1,028,904 $ 1,011,976 $ 1,026,104
Less: Goodwill 31,517 31,517 31,517
  Intangible Assets       -         -         21  
Tangible Common Equity     $ 997,387       $ 980,459       $ 994,566  
 
Total Assets $ 14,263,118 $ 14,084,280 $ 13,525,667
Less: Goodwill 31,517 31,517 31,517
  Intangible Assets       -         -         21  
Tangible Assets     $ 14,231,601       $ 14,052,763       $ 13,494,129  
 

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

$ 6,430,987 $ 6,330,532 $ 5,836,354
 
Total Shareholders' Equity to Total Assets 7.21 % 7.19 % 7.59 %
Tangible Common Equity to Tangible Assets (Non-GAAP) 7.01 % 6.98 % 7.37 %
 
Tier 1 Capital Ratio 15.47 % 15.55 % 16.12 %
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 15.51 % 15.49 % 17.04 %
 
Bank of Hawaii Corporation and Subsidiaries
Net Significant Items Table 2
    Three Months Ended
March 31,   December 31, March 31,
(dollars in thousands)     2014   2013   2013
Investment Securities Gains, Net $ 2,160 $ - $ -
Decrease in Allowance for Loan and Lease Losses 1,328 8,225 1,979
Separation Expense (549 ) (394 ) (1,475 )
Operating Losses       (730 )     -       -  
Significant Items Before the Provision (Benefit) for Income Taxes       2,209       7,831       504  
Release of Tax Reserve (1,249 ) - -
Income Tax Impact       866       2,741       176  
Net Significant Items     $ 2,592     $ 5,090     $ 328  
 
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)     2014   2013   2013
Interest Income
Interest and Fees on Loans and Leases $ 63,526 $ 63,809 $ 62,820
Income on Investment Securities
Available-for-Sale 10,760 10,608 15,851
Held-to-Maturity 27,889 26,882 19,854
Deposits 3 3 3
Funds Sold 137 105 59
Other       302     302     284
Total Interest Income       102,617     101,709     98,871
Interest Expense
Deposits 2,358 2,418 2,646
Securities Sold Under Agreements to Repurchase 6,397 6,530 7,005
Funds Purchased 3 8 22
Short-Term Borrowings - 2 -
Long-Term Debt       626     631     638
Total Interest Expense       9,384     9,589     10,311
Net Interest Income 93,233 92,120 88,560
Provision for Credit Losses       -     -     -
Net Interest Income After Provision for Credit Losses       93,233     92,120     88,560
Noninterest Income
Trust and Asset Management 11,852 12,240 11,886
Mortgage Banking 2,005 2,823 6,411
Service Charges on Deposit Accounts 8,878 9,326 9,301
Fees, Exchange, and Other Service Charges 12,939 12,670 11,934
Investment Securities Gains, Net 2,160 - -
Insurance 2,123 2,295 2,325
Bank-Owned Life Insurance 1,602 1,895 1,297
Other       3,209     4,029     4,624
Total Noninterest Income       44,768     45,278     47,778
Noninterest Expense
Salaries and Benefits 46,897 43,643 48,675
Net Occupancy 9,417 9,602 9,635
Net Equipment 4,603 4,837 4,577
Data Processing 3,649 3,827 3,266
Professional Fees 2,260 2,669 2,226
FDIC Insurance 2,076 1,954 1,949
Other       14,645     15,892     14,059
Total Noninterest Expense       83,547     82,424     84,387
Income Before Provision for Income Taxes 54,454 54,974 51,951
Provision for Income Taxes       15,862     15,919     15,971
Net Income     $ 38,592   $ 39,055   $ 35,980
Basic Earnings Per Share $ 0.87 $ 0.88 $ 0.81
Diluted Earnings Per Share $ 0.87 $ 0.88 $ 0.81
Dividends Declared Per Share $ 0.45 $ 0.45 $ 0.45
Basic Weighted Average Shares 44,193,267 44,223,281 44,545,092
Diluted Weighted Average Shares       44,420,349     44,496,313     44,686,632
 
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)     2014   2013   2013
Net Income $ 38,592 $ 39,055 $ 35,980
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities 6,271 (6,006 ) (9,641 )
Defined Benefit Plans       156     7,694       78  
Total Other Comprehensive Income (Loss) 6,427 1,688 (9,563 )
               
Comprehensive Income     $ 45,019   $ 40,743     $ 26,417  
 
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition Table 5
    March 31,   December 31,   March 31,
(dollars in thousands)       2014     2013     2013  
Assets
Interest-Bearing Deposits $ 4,085 $ 3,617 $ 4,840
Funds Sold 382,154 271,414 130,734
Investment Securities
Available-for-Sale 2,188,064 2,243,697 3,290,850
Held to Maturity (Fair Value of $4,774,032; $4,697,587; and $3,679,208) 4,777,494 4,744,519 3,597,810
Loans Held for Sale 2,437 6,435 24,015
Loans and Leases 6,209,857 6,095,387 5,782,969
Allowance for Loan and Lease Losses       (114,126 )     (115,454 )     (126,878 )
Net Loans and Leases       6,095,731       5,979,933       5,656,091  
Total Earning Assets       13,449,965       13,249,615       12,704,340  
Cash and Noninterest-Bearing Deposits 159,079 188,715 147,796
Premises and Equipment 107,323 108,636 104,844
Accrued Interest Receivable 46,431 43,930 46,183
Foreclosed Real Estate 3,450 3,205 3,318
Mortgage Servicing Rights 27,378 28,123 26,540
Goodwill 31,517 31,517 31,517
Other Assets       437,975       430,539       461,129  
Total Assets     $ 14,263,118     $ 14,084,280     $ 13,525,667  
 
Liabilities
Deposits
Noninterest-Bearing Demand $ 3,679,410 $ 3,681,128 $ 3,336,406
Interest-Bearing Demand 2,378,414 2,355,608 2,127,550
Savings 4,515,026 4,560,150 4,451,143
Time       1,471,623       1,317,770       1,336,761  
Total Deposits       12,044,473       11,914,656       11,251,860  
Funds Purchased 9,982 9,982 66,296
Short-Term Borrowings 375 - -
Securities Sold Under Agreements to Repurchase 797,213 770,049 748,718
Long-Term Debt 174,695 174,706 177,427
Retirement Benefits Payable 35,111 34,965 47,423
Accrued Interest Payable 5,743 4,871 5,772
Taxes Payable and Deferred Taxes 45,811 34,907 93,906
Other Liabilities       120,811       128,168       108,161  
Total Liabilities       13,234,214       13,072,304       12,499,563  
Shareholders' Equity

Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: March 31, 2014 - 57,620,212 / 44,467,593; December 31, 2013 - 57,480,846 / 44,490,385; and March 31, 2013 - 57,465,782 / 44,861,335)

573 572 572
Capital Surplus 524,912 522,505 517,327
Accumulated Other Comprehensive Income (Loss) (25,396 ) (31,823 ) 19,645
Retained Earnings 1,170,068 1,151,754 1,098,674

Treasury Stock, at Cost (Shares: March 31, 2014 - 13,152,619; December 31, 2013 - 12,990,461; and March 31, 2013 - 12,604,447)

(641,253 ) (631,032 ) (610,114 )
Total Shareholders' Equity       1,028,904       1,011,976       1,026,104  
Total Liabilities and Shareholders' Equity     $ 14,263,118     $ 14,084,280     $ 13,525,667  
 
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity   Table 6
          Accum.      
Other
Compre-
Common hensive
Shares Common Capital Income Retained Treasury
(dollars in thousands)     Outstanding   Stock   Surplus   (Loss)   Earnings   Stock   Total

Balance as of December 31, 2013

 44,490,385 $ 572 $ 522,505 $ (31,823 ) $ 1,151,754 $ (631,032 ) $ 1,011,976
Net Income - - - - 38,592 - 38,592
Other Comprehensive Income - - - 6,427 - - 6,427
Share-Based Compensation - - 1,808 - - - 1,808
Common Stock Issued under Purchase and Equity

Compensation Plans and Related Tax Benefits

222,762 1 599 - (205 ) 4,063 4,458
Common Stock Repurchased (245,554 ) - - - - (14,284 ) (14,284 )
Cash Dividends Paid ($0.45 per share)     -       -     -     -       (20,073 )     -       (20,073 )
Balance as of March 31, 2014     44,467,593     $ 573   $ 524,912   $ (25,396 )   $ 1,170,068     $ (641,253 )   $ 1,028,904  
 
Balance as of December 31, 2012 44,754,835 $ 571 $ 515,619 $ 29,208 $ 1,084,477 $ (608,210 ) $ 1,021,665
Net Income - - - - 35,980 - 35,980
Other Comprehensive Loss - - - (9,563 ) - - (9,563 )
Share-Based Compensation - - 1,280 - - - 1,280
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits 277,927 1 428 - (1,553 ) 6,395 5,271
Common Stock Repurchased (171,427 ) - - - - (8,299 ) (8,299 )
Cash Dividends Paid ($0.45 per share)     -       -     -     -       (20,230 )     -       (20,230 )
Balance as of March 31, 2013     44,861,335     $ 572   $ 517,327   $ 19,645     $ 1,098,674     $ (610,114 )   $ 1,026,104  
 
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, 2014 December 31, 2013 March 31, 2013
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 $ 5.7 $ - 0.23 % $ 3.2 $ - 0.42 % $ 4.0 $ - 0.32 %
Funds Sold 270.5 0.1 0.20 222.8 0.1 0.18 156.4 0.1 0.15
Investment Securities
Available-for-Sale 2,226.4 12.7 2.29 2,274.8 12.4 2.17 3,322.1 18.2 2.19
Held-to-Maturity 4,754.2 28.8 2.42 4,653.4 27.7 2.38 3,578.1 19.8 2.22
Loans Held for Sale 4.2 0.1 4.68 7.8 0.1 5.07 18.3 0.2 3.94
Loans and Leases 1
Commercial and Industrial 923.8 7.8 3.41 906.3 7.8 3.42 822.9 7.6 3.75
Commercial Mortgage 1,250.0 12.7 4.12 1,237.0 12.4 3.97 1,093.4 11.1 4.10
Construction 97.3 1.1 4.43 115.2 1.3 4.63 115.5 1.4 5.04
Commercial Lease Financing 245.8 1.4 2.33 255.6 1.4 2.14 272.7 1.6 2.41
Residential Mortgage 2,286.9 24.4 4.27 2,284.4 24.8 4.35 2,311.6 25.9 4.49
Home Equity 781.8 7.6 3.97 767.7 7.8 4.04 767.9 7.9 4.16
Automobile 263.3 3.5 5.39 248.9 3.4 5.39 214.1 3.0 5.61
Other 2     255.1     5.0   7.90       238.5     4.9 8.08       205.4     4.2   8.33
Total Loans and Leases     6,104.0     63.5   4.19       6,053.6     63.8 4.19       5,803.5     62.7   4.36
Other     76.8     0.3   1.57       77.5     0.3 1.55       79.1     0.3   1.44
Total Earning Assets 3     13,441.8     105.5   3.16       13,293.1     104.4 3.13       12,961.5     101.3   3.14
Cash and Noninterest-Bearing Deposits 142.5 136.8 141.9
Other Assets   449.6   435.0   454.0
Total Assets $ 14,033.9 $ 13,864.9 $ 13,557.4
 
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand $ 2,325.8 0.2 0.03 $ 2,245.5 0.1 0.03 $ 2,060.7 0.1 0.03
Savings 4,515.6 1.0 0.09 4,499.5 1.0 0.09 4,408.4 1.0 0.09
Time     1,373.1     1.2   0.37       1,331.2     1.3 0.38       1,512.9     1.5   0.41
Total Interest-Bearing Deposits     8,214.5     2.4   0.12       8,076.2     2.4 0.12       7,982.0     2.6   0.13
Short-Term Borrowings 10.0 - 0.14 28.3 - 0.15 58.1 - 0.15
Securities Sold Under Agreements to Repurchase 794.4 6.4 3.22 832.6 6.6 3.07 756.1 7.0 3.71
Long-Term Debt     174.7     0.6   1.44       174.7     0.6 1.44       157.1     0.7   1.63
Total Interest-Bearing Liabilities     9,193.6     9.4   0.41       9,111.8     9.6 0.41       8,953.3     10.3   0.46
Net Interest Income $ 96.1 $ 94.8 $ 91.0
Interest Rate Spread 2.75 % 2.72 % 2.68 %
Net Interest Margin 2.87 % 2.85 % 2.82 %
Noninterest-Bearing Demand Deposits 3,600.0 3,495.7 3,305.5
Other Liabilities 206.9 248.6 263.8
Shareholders' Equity   1,033.4   1,008.8   1,034.8
Total Liabilities and Shareholders' Equity $ 14,033.9 $ 13,864.9 $ 13,557.4
 
 

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 $2,824,000, $2,696,000, and $2,411,000 for the three months ended March 31, 2014, December 31, 2013, and March 31, 2013, respectively.

 
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8a
    Three Months Ended March 31, 2014
Compared to December 31, 2013
(dollars in millions)     Volume 1   Rate 1   Total
Change in Interest Income:  
Investment Securities
Available-for-Sale $ (0.3 ) $ 0.6 $ 0.3
Held-to-Maturity 0.7 0.4 1.1
Loans and Leases
Commercial and Industrial 0.1 (0.1 ) -
Commercial Mortgage 0.1 0.2 0.3
Construction (0.2 ) - (0.2 )
Commercial Lease Financing (0.1 ) 0.1 -
Residential Mortgage - (0.4 ) (0.4 )
Home Equity - (0.2 ) (0.2 )
Automobile 0.1 - 0.1
Other 2       0.2       (0.1 )     0.1  
Total Loans and Leases       0.2       (0.5 )     (0.3 )
Total Change in Interest Income       0.6       0.5       1.1  
 
Change in Interest Expense:
Interest-Bearing Deposits
Demand 0.1 - 0.1
Time       -       (0.1 )     (0.1 )
Total Interest-Bearing Deposits       0.1       (0.1 )     -  
Securities Sold Under Agreements to Repurchase       (0.4 )     0.2       (0.2 )
Total Change in Interest Expense       (0.3 )     0.1       (0.2 )
 
Change in Net Interest Income     $ 0.9     $ 0.4     $ 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, 2014
Compared to March 31, 2013
(dollars in millions)     Volume 1   Rate 1   Total
Change in Interest Income:  
Investment Securities
Available-for-Sale $ (6.2 ) $ 0.7 $ (5.5 )
Held-to-Maturity 7.0 2.0 9.0
Loans Held for Sale (0.1 ) - (0.1 )
Loans and Leases
Commercial and Industrial 0.9 (0.7 ) 0.2
Commercial Mortgage 1.6 - 1.6
Construction (0.2 ) (0.1 ) (0.3 )
Commercial Lease Financing (0.1 ) (0.1 ) (0.2 )
Residential Mortgage (0.3 ) (1.2 ) (1.5 )
Home Equity 0.1 (0.4 ) (0.3 )
Automobile 0.6 (0.1 ) 0.5
Other 2       1.0       (0.2 )     0.8  
Total Loans and Leases       3.6       (2.8 )     0.8  
Total Change in Interest Income       4.3       (0.1 )     4.2  
 
Change in Interest Expense:
Interest-Bearing Deposits
Demand 0.1 - 0.1
Time       (0.1 )     (0.2 )     (0.3 )
Total Interest-Bearing Deposits       -       (0.2 )     (0.2 )
Securities Sold Under Agreements to Repurchase 0.3 (0.9 ) (0.6 )
Long-Term Debt       -       (0.1 )     (0.1 )
Total Change in Interest Expense       0.3       (1.2 )     (0.9 )
 
Change in Net Interest Income     $ 4.0     $ 1.1     $ 5.1  
 
 

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)     2014   2013   2013
Salaries $ 27,914 $ 28,636 $ 29,078
Incentive Compensation 4,231 4,681 3,784
Share-Based Compensation 1,969 1,158 1,136
Commission Expense 1,059 1,222 1,781
Retirement and Other Benefits 4,986 3,183 4,368
Payroll Taxes 3,568 2,091 4,240
Medical, Dental, and Life Insurance 2,621 2,278 2,813
Separation Expense       549     394     1,475
Total Salaries and Benefits     $ 46,897   $ 43,643   $ 48,675
 
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)       2014     2013     2013     2013     2013
Commercial
Commercial and Industrial $ 955,599 $ 911,367 $ 895,040 $ 875,702 $ 834,801
Commercial Mortgage 1,284,181 1,247,510 1,203,670 1,160,977 1,104,718
Construction 91,452 107,349 124,230 107,016 117,797
Lease Financing       240,931     262,207     255,550     257,067     269,107
Total Commercial       2,572,163     2,528,433     2,478,490     2,400,762     2,326,423
Consumer
Residential Mortgage 2,305,153 2,282,894 2,282,305 2,252,117 2,275,209
Home Equity 797,341 773,385 765,841 751,790 757,877
Automobile 273,553 255,986 246,704 233,475 220,362
Other 1       261,647     254,689     233,302     221,008     203,098
Total Consumer       3,637,694     3,566,954     3,528,152     3,458,390     3,456,546
Total Loans and Leases     $ 6,209,857   $ 6,095,387   $ 6,006,642   $ 5,859,152   $ 5,782,969
 
 
Higher Risk Loans and Leases Outstanding
March 31, December 31, September 30, June 30, March 31,
(dollars in thousands)     2014   2013   2013   2013   2013
Residential Land Loans 2 $ 11,086 $ 11,922 $ 13,635 $ 13,708 $ 13,996
Home Equity Loans 3 11,846 12,594 12,588 13,578 20,786
Air Transportation 4       24,969     26,152     26,492     26,436     27,115
Total Higher Risk Loans     $ 47,901   $ 50,668   $ 52,715   $ 53,722   $ 61,897
 
1 Comprised of other revolving credit, installment, and lease financing.
2 We consider all of our residential land loans, which are consumer loans secured by unimproved lots, to be of higher risk due to the volatility in the value of the underlying collateral.
3 Higher risk home equity loans are defined as those loans originated in 2005 or later, with current monitoring credit scores below 600, and with original loan-to-value ratios greater than 70%.
4 We consider all of our air transportation leases to be of higher risk due to the weak financial profile of the industry.
 
 
Deposits
March 31, December 31, September 30, June 30, March 31,
(dollars in thousands)     2014   2013   2013   2013   2013
Consumer $ 5,960,485 $ 5,829,352 $ 5,707,125 $ 5,626,515 $ 5,607,862
Commercial 4,742,308 4,814,076 4,680,370 4,537,120 4,505,835
Public and Other       1,341,680     1,271,228     1,220,639     1,285,563     1,138,163
Total Deposits     $ 12,044,473   $ 11,914,656   $ 11,608,134   $ 11,449,198   $ 11,251,860
 
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)   2014     2013     2013     2013     2013  
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial $ 11,239 $ 11,929 $ 5,295 $ 4,909 $ 5,033
Commercial Mortgage 1,421 2,512 2,355 2,772 2,910
Lease Financing     -       -       -       16       -  
Total Commercial     12,660       14,441       7,650       7,697       7,943  
Consumer
Residential Mortgage 19,003 20,264 20,637 22,876 24,700
Home Equity     1,935       1,740       2,509       2,602       2,413  
Total Consumer     20,938       22,004       23,146       25,478       27,113  
Total Non-Accrual Loans and Leases     33,598       36,445       30,796       33,175       35,056  
Foreclosed Real Estate     3,450       3,205       3,036       3,256       3,318  
Total Non-Performing Assets   $ 37,048     $ 39,650     $ 33,832     $ 36,431     $ 38,374  
 
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial   $ 150     $ 1,173     $ 8     $ -     $ 230  
Total Commercial     150       1,173       8       -       230  
Consumer
Residential Mortgage 5,729 4,564 7,460 6,876 5,967
Home Equity 2,845 3,009 2,896 2,768 4,538
Automobile 346 322 193 95 241
Other 1     644       790       841       855       676  
Total Consumer     9,564       8,685       11,390       10,594       11,422  
Total Accruing Loans and Leases Past Due 90 Days or More   $ 9,714     $ 9,858     $ 11,398     $ 10,594     $ 11,652  

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

 $ 44,473 $ 51,123 $ 39,845 $ 39,154 $ 30,065
Total Loans and Leases   $ 6,209,857     $ 6,095,387     $ 6,006,642     $ 5,859,152     $ 5,782,969  
 
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases     0.54 %     0.60 %     0.51 %     0.57 %     0.61 %
 

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

    0.60 %     0.65 %     0.56 %     0.62 %     0.66 %
 

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

    0.53 %     0.61 %     0.35 %     0.37 %     0.39 %
 

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

    0.64 %     0.68 %     0.71 %     0.80 %     0.85 %
 
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

    0.75 %     0.81 %     0.75 %     0.80 %     0.86 %
 
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter $ 39,650 $ 33,832 $ 36,431 $ 38,374 $ 37,083
Additions 2,491 13,040 3,395 2,647 7,304
Reductions
Payments (1,855 ) (932 ) (2,954 ) (1,306 ) (2,630 )
Return to Accrual Status (1,864 ) (2,308 ) (1,166 ) (1,978 ) (1,132 )
Sales of Foreclosed Real Estate (737 ) (1,431 ) (1,498 ) (1,257 ) (1,910 )
Charge-offs/Write-downs     (637 )     (2,551 )     (376 )     (49 )     (341 )
Total Reductions     (5,093 )     (7,222 )     (5,994 )     (4,590 )     (6,013 )
Balance at End of Quarter   $ 37,048     $ 39,650     $ 33,832     $ 36,431     $ 38,374  
 
 
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)     2014   2013   2013  
Balance at Beginning of Period $ 121,521 $ 129,747 $ 134,276
Loans and Leases Charged-Off
Commercial
Commercial and Industrial (819 ) (6,828 ) (382 )
Consumer
Residential Mortgage (329 ) (185 ) (1,235 )
Home Equity (351 ) (721 ) (1,377 )
Automobile (917 ) (670 ) (575 )
Other 1       (1,622 )     (2,039 )     (1,730 )
Total Loans and Leases Charged-Off       (4,038 )     (10,443 )     (5,299 )
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial 920 308 438
Commercial Mortgage 14 14 10
Construction 5 8 338
Lease Financing 2 8 11
Consumer
Residential Mortgage 272 828 788
Home Equity 551 246 748
Automobile 445 363 461
Other 1       501       442       526  
Total Recoveries on Loans and Leases Previously Charged-Off       2,710       2,217       3,320  
Net Loans and Leases Charged-Off (1,328 ) (8,226 ) (1,979 )
Provision for Unfunded Commitments       (57 )     -       -  
Balance at End of Period 2     $ 120,136     $ 121,521     $ 132,297  
 
Components
Allowance for Loan and Lease Losses $ 114,126 $ 115,454 $ 126,878
Reserve for Unfunded Commitments       6,010       6,067       5,419  
Total Reserve for Credit Losses     $ 120,136     $ 121,521     $ 132,297  
 
Average Loans and Leases Outstanding     $ 6,104,041     $ 6,053,607     $ 5,803,503  
 
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized) 0.09 % 0.54 % 0.14 %
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding 1.84 % 1.89 % 2.19 %
 
 
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, 2014
Net Interest Income $ 42,568 $ 26,771 $ 2,582 $ 21,312 $ 93,233
Provision for Credit Losses       1,456       (61 )     (68 )     (1,327 )     -  
Net Interest Income After Provision for Credit Losses 41,112 26,832 2,650 22,639 93,233
Noninterest Income 19,492 6,088 14,343 4,845 44,768
Noninterest Expense       (49,747 )     (16,767 )     (14,235 )     (2,798 )     (83,547 )
Income Before Provision for Income Taxes 10,857 16,153 2,758 24,686 54,454
Provision for Income Taxes       (4,017 )     (5,514 )     (1,020 )     (5,311 )     (15,862 )
Net Income       6,840       10,639       1,738       19,375       38,592  
Total Assets as of March 31, 2014     $ 3,717,269     $ 2,475,163     $ 183,381     $ 7,887,305     $ 14,263,118  
 
 
Three Months Ended March 31, 2013 1
Net Interest Income $ 40,703 $ 24,983 $ 2,771 $ 20,103 $ 88,560
Provision for Credit Losses       2,612       (604 )     (21 )     (1,987 )     -  
Net Interest Income After Provision for Credit Losses 38,091 25,587 2,792 22,090 88,560
Noninterest Income 22,924 6,960 14,810 3,084 47,778
Noninterest Expense       (50,857 )     (16,512 )     (14,183 )     (2,835 )     (84,387 )
Income Before Provision for Income Taxes 10,158 16,035 3,419 22,339 51,951
Provision for Income Taxes       (3,759 )     (5,478 )     (1,265 )     (5,469 )     (15,971 )
Net Income       6,399       10,557       2,154       16,870       35,980  
Total Assets as of March 31, 2013 1     $ 3,563,313     $ 2,193,088     $ 188,662     $ 7,580,604     $ 13,525,667  
 
 
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)     2014     2013     2013     2013     2013
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases $ 63,526 $ 63,809 $ 63,918 $ 62,729 $ 62,820
Income on Investment Securities
Available-for-Sale 10,760 10,608 12,038 15,073 15,851
Held-to-Maturity 27,889 26,882 24,137 19,189 19,854
Deposits 3 3 3 1 3
Funds Sold 137 105 177 74 59
Other       302       302       301       285       284
Total Interest Income       102,617       101,709       100,574       97,351       98,871
Interest Expense
Deposits 2,358 2,418 2,500 2,579 2,646
Securities Sold Under Agreements to Repurchase 6,397 6,530 6,551 6,751 7,005
Funds Purchased 3 8 4 10 22
Short-Term Borrowings - 2 - - -
Long-Term Debt       626       631       632       671       638
Total Interest Expense       9,384       9,589       9,687       10,011       10,311
Net Interest Income 93,233 92,120 90,887 87,340 88,560
Provision for Credit Losses       -       -       -       -       -
Net Interest Income After Provision for Credit Losses       93,233       92,120       90,887       87,340       88,560
Noninterest Income
Trust and Asset Management 11,852 12,240 11,717 12,089 11,886
Mortgage Banking 2,005 2,823 4,132 5,820 6,411
Service Charges on Deposit Accounts 8,878 9,326 9,385 9,112 9,301
Fees, Exchange, and Other Service Charges 12,939 12,670 12,732 13,133 11,934
Investment Securities Gains, Net 2,160 - - - -
Insurance 2,123 2,295 2,177 2,393 2,325
Bank-Owned Life Insurance 1,602 1,895 1,365 1,335 1,297
Other       3,209       4,029       3,618       4,159       4,624
Total Noninterest Income       44,768       45,278       45,126       48,041       47,778
Noninterest Expense
Salaries and Benefits 46,897 43,643 46,552 45,341 48,675
Net Occupancy 9,417 9,602 9,847 9,661 9,635
Net Equipment 4,603 4,837 4,572 4,380 4,577
Data Processing 3,649 3,827 3,697 3,050 3,266
Professional Fees 2,260 2,669 2,119 2,391 2,226
FDIC Insurance 2,076 1,954 1,913 1,949 1,949
Other       14,645       15,892       14,277       14,409       14,059
Total Noninterest Expense       83,547       82,424       82,977       81,181       84,387
Income Before Provision for Income Taxes 54,454 54,974 53,036 54,200 51,951
Provision for Income Taxes       15,862       15,919       15,332       16,437       15,971
Net Income     $ 38,592     $ 39,055     $ 37,704     $ 37,763     $ 35,980
 
Basic Earnings Per Share $ 0.87 $ 0.88 $ 0.85 $ 0.85 $ 0.81
Diluted Earnings Per Share $ 0.87 $ 0.88 $ 0.85 $ 0.85 $ 0.81
 
Balance Sheet Totals
Loans and Leases $ 6,209,857 $ 6,095,387 $ 6,006,642 $ 5,859,152 $ 5,782,969
Total Assets 14,263,118 14,084,280 13,848,871 13,733,418 13,525,667
Total Deposits 12,044,473 11,914,656 11,608,134 11,449,198 11,251,860
Total Shareholders' Equity 1,028,904 1,011,976 992,686 986,368 1,026,104
 
Performance Ratios
Return on Average Assets 1.12 % 1.12 % 1.09 % 1.12 % 1.08 %
Return on Average Shareholders' Equity 15.15 15.36 15.02 14.64 14.10
Efficiency Ratio 1 60.54 59.99 61.01 59.96 61.90
Net Interest Margin 2 2.87 2.85 2.83 2.77 2.82
 
 

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 28, 2014     December 31, 2013     December 31, 2012  
Hawaii Economic Trends        
State General Fund Revenues 1 $ 930.4 (2.3 ) % $ 5,451.3 3.7 % $ 5,259.1 12.8 %
General Excise and Use Tax Revenue 1 $ 517.8 0.5 % $ 2,907.6 2.2 % $ 2,844.7 9.9 %
Jobs 2 626.4 623.1 619.3
                                     
March 31, December 31,  
(spot rates)                     2014       2013     2012  
Unemployment 3
Statewide, seasonally adjusted 4.5 % 4.7 % 5.1 %
 
Oahu 4.0 3.8 4.2
Island of Hawaii 5.9 5.9 6.9
Maui 4.9 4.7 5.2
Kauai 5.3 5.2 6.1
                                     
February 28,   December 31,  
(percentage change, except months of inventory)           2014     2013     2012  
Housing Trends (Single Family Oahu) 4
Median Home Price 9.8 % 4.8 % 7.8 %
Home Sales Volume (units) 0.9 % 4.6 % 6.5 %
Months of Inventory 2.6 2.7 2.5
                                     
Monthly Visitor Arrivals, Percentage Change
(in thousands)               Not Seasonally Adjusted     from Previous Year  
Tourism 5
 
February 28, 2014 646.8 (4.3 )
January 31, 2014 682.6 0.1
December 31, 2013 722.4 (1.9 )
November 30, 2013 620.1 (5.5 )
October 31, 2013 636.2 (1.6 )
September 30, 2013 594.2 (1.0 )
August 31, 2013 748.8 2.5
July 31, 2013 758.0 4.6
June 30, 2013 716.6 5.5
May 31, 2013 645.7 3.7
April 30, 2013 667.0 3.1
March 31, 2013 769.0 7.6
February 28, 2013 675.5 7.8
January 31, 2013 681.9 5.9
December 31, 2012 733.7 6.3
November 30, 2012 651.2 14.5
October 31, 2012 640.7 8.6
September 30, 2012 595.0 6.1
August 31, 2012 725.6 11.0
July 31, 2012 720.4 7.8
June 30, 2012 677.2 11.5
May 31, 2012 622.9 12.5
April 30, 2012 647.2 11.3
March 31, 2012 715.0 12.9
 
1 Source: Hawaii Department of Business, Economic Development & Tourism
2 Source: U. S. Bureau of Labor, preliminary figure
3 Source: Hawaii Department of Labor and Industrial Relations
4 Source: Honolulu Board of REALTORS
5 Source: Hawaii Tourism Authority
Note: Certain prior period seasonally adjusted information has been revised.