Bank of Hawaii Corporation Third Quarter 2009 Financial Results
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-- Diluted Earnings Per Share $0.76
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HONOLULU--(BUSINESS WIRE)-- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.76 for the third quarter of 2009, up from $0.65 in the previous quarter, and down from $0.99 in the same quarter last year. Net income for the third quarter of 2009 was $36.5 million compared to net income of $31.0 million in the second quarter of 2009, and $47.4 million in the third quarter of 2008. Results for the third quarter of 2008 included a net credit of $8.9 million related to the Company's resolution of Sale In/Lease Out ("SILO") leases with the Internal Revenue Service. The return on average assets for the third quarter of 2009 was 1.21 percent, compared to 1.06 percent during the previous quarter, and 1.82 percent during the same quarter last year. The return on average equity for the third quarter of 2009 was 16.44 percent compared to 14.49 percent for the second quarter of 2009, and 24.17 percent for the third quarter of 2008.
"Bank of Hawaii Corporation had good results for the third quarter of 2009 despite continuing economic weakness," said Allan R. Landon, Chairman, and CEO. "We were able to increase our liquidity, capital, and reserves, improve profitability, and our Board affirmed our dividend. Asset quality indicators were mixed this quarter as we continue to address weakened credits. Bank of Hawaii has a strong balance sheet and remains safe, balanced, and well prepared for the future."
For the nine months, ended September 30, 2009, net income was $103.5 million compared to net income of $152.9 million for the same period last year. Diluted earnings per share were $2.16 for the nine-month period in 2009, down from $3.17 for the same period in 2008. The year-to-date return on average assets was 1.19 percent compared to 1.95 percent for the same period in 2008. The year-to-date return on average equity was 16.24 percent, down from 26.26 percent for the nine months ended September 30, 2008 partially due to the growth in capital.
Results for the nine months ended September 30, 2009 included gains of $13.7 million from the disposition of leased equipment and the sale of the Company's retail insurance brokerage business. These gains were offset by increases in the allowance for loan and lease losses, expenses for legal contingencies, an industry-wide FDIC special assessment, impairment of a leveraged lease residual value, and early debt retirement. Results for the same period in 2008 included $31.0 million from the mandatory redemption of Visa shares, a reversal of Visa legal costs, and a lessee's early buy-out of an aircraft lease. Partially offsetting these gains were expenses for employee incentives, legal contingencies, a call premium on Capital Securities, increases in the allowance for loan and lease losses, and contributions to the Bank of Hawaii Charitable Foundation. Details of these items are included in Table 2.
Financial Highlights
Net interest income, on a taxable equivalent basis, for the third quarter of 2009 was $109.2 million, up $6.0 million from net interest income of $103.2 million in the second quarter of 2009, and up $5.4 million from net interest income of $103.8 million in the third quarter of 2008. Net interest income in the third quarter of 2009 included a charge of $1.0 million related to impairment of the residual value of an aircraft leveraged lease investment. The increase in net interest income compared with the second quarter of 2009 was largely due to a higher level of earning assets and a higher net interest margin. Net interest income in the third quarter of 2008 included a $4.0 million reduction of income related to settlement of the SILO leases. For the nine months ended September 30, 2009, net interest income, on a taxable-equivalent basis, was $309.7 million compared to $313.6 million for the same period in 2008. Analyses of the changes in net interest income are included in Tables 7a, 7b and 7c.
The net interest margin was 3.85 percent for the third quarter of 2009, a 12 basis point increase from 3.73 percent in the second quarter of 2009, and a 48 basis point decrease from 4.33 percent in the third quarter of 2008. For the nine months ended September 30, 2009, the net interest margin was 3.78 percent compared to 4.30 percent for the same nine months in 2008. The decrease in the net interest margin was largely the result of lower interest rates and the Company's strategy to increase liquidity and reduce risk.
Results for the third quarter of 2009 included a provision for credit losses of $27.5 million compared with $28.7 million in the second quarter of 2009 and $20.4 million in the third quarter of 2008. The provision for credit losses exceeded net charge-offs by $5.2 million in the third quarter of 2009. The provision for credit losses exceeded net charge-offs by $3.0 million in the second quarter of 2009 and exceeded net charge-offs by $13.0 million in the third quarter of 2008.
Noninterest income was $56.8 million for the third quarter of 2009, a decrease of $3.0 million compared to $59.8 million in the second quarter of 2009, and essentially flat with noninterest income of $57.0 million in the third quarter of 2008. Noninterest income in the second quarter of 2009 included a gain of $2.8 million related to the disposition of leased equipment and $0.9 million due to the previously mentioned sale of the retail insurance brokerage business.
Noninterest expense was $84.0 million in the third quarter of 2009, down $5.6 million from $89.6 million in the previous quarter, and down $2.8 million from $86.8 million in the same quarter last year. Noninterest expense in the second quarter of 2009 included $5.7 million related to an industry-wide FDIC special assessment. Noninterest expense in the third quarter of 2008 included a $2.0 million broad based employee incentive accrual. An analysis of salary and benefit expenses is included in Table 8.
The efficiency ratio for the third quarter of 2009 was 50.69 percent, compared with an efficiency ratio of 55.07 percent in the previous quarter and 54.05 percent in the same quarter last year. The efficiency ratio for the nine-month period ended September 30, 2009 was 52.74 percent compared with 51.12 percent for the same period last year.
The effective tax rate for the third quarter of 2009 was 32.71 percent, compared to 30.18 percent in the previous quarter, and 11.24 percent during the third quarter last year. Taxes in the third quarter of 2009 included a $0.4 million credit related to the previously mentioned leveraged lease residual value impairment, and taxes in the second quarter of 2009 were reduced by a $1.6 million tax benefit resulting from accounting for the termination of a leveraged lease. The lower effective tax rate in the third quarter of 2008 was due to a credit of $12.9 million related to the previously mentioned SILO lease settlement.
The Company's business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury & Other. Results 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 Tables 12a and 12b.
Asset Quality
Credit quality during the third quarter of 2009 continued to reflect the weak national and local economies. Non-accrual loans and leases were $48.3 million at the end of September 30, 2009, up from $38.6 million at June 30, 2009, and up from $5.6 million at September 30, 2008. As a percentage of total loans and leases, non-accrual loans and leases were 0.81 percent at September 30, 2009. The increase in non-accrual loans was largely in two commercial construction loans.
Accruing loans and leases past due 90 days or more increased $2.7 million during the third quarter of 2009 due to the addition of a $3.0 million commercial construction loan on the island of Hawaii, which offset a small decline in delinquent consumer loans. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 10.
Net charge-offs during the third quarter of 2009 were $22.3 million, down from $25.7 million in the second quarter of 2009, and up from $7.4 million in the third quarter last year. Net charge-offs for the third quarter of 2009 included $5.8 million in partial charge-offs related to three non-accrual commercial construction loans and $4.0 million in partial charge-offs related to the sale of three syndicated credits.
The allowance for loan and lease losses was $142.7 million at September 30, 2009, up from $137.4 million at June 30, 2009 and $115.5 million at September 30, 2008. The ratio of the allowance for loan and lease losses to total loans and leases increased to 2.41 percent at September 30, 2009. The reserve for unfunded commitments at September 30, 2009 was unchanged at $5.4 million. Details of charge-offs, recoveries and the components of the total reserve for credit losses are summarized in Table 11.
Other Financial Highlights
Total assets were $12.21 billion at September 30, 2009, up slightly from total assets of $12.19 billion at June 30, 2009, and up $1.87 billion from total assets of $10.34 billion at September 30, 2008. Average total assets were $11.99 billion during the third quarter of 2009, up $235 million from average assets of $11.75 billion during the previous quarter, and up $1.65 billion from average assets of $10.34 billion during the third quarter last year. The growth in assets was primarily in investment securities available for sale and is the result of strong deposit generation.
The Company continued to decrease loans during the quarter due to reduced loan demand along with planned credit exits and payoffs to reduce overall portfolio risk. Also in the third quarter of 2009, the Company sold its position in three syndicated loans totaling $19.5 million. Loan and lease portfolio balances, including elements of higher risk, are summarized in Table 9.
Total deposits were $9.25 billion at September 30, 2009, up $230 million from $9.02 billion at June 30, 2009, and up $1.59 billion from $7.66 billion at September 30, 2008. The increase in deposits was widespread among deposit categories except time deposits. Average total deposits were $9.13 billion in the third quarter of 2009, down $91 million from average deposits of $9.22 billion during the previous quarter, and up $1.36 billion from $7.77 billion during the third quarter last year. The Company slowed deposit growth during the third quarter due to the limited lending opportunities. Deposit balances are summarized in Tables 6a, 6b, and 9.
Consistent with the Company's strategy to build capital levels, no shares were repurchased during the third quarter of 2009. Remaining buyback authority under the share repurchase program was $85.4 million at September 30, 2009. Total shareholders' equity increased to $902.8 million at September 30, 2009, compared to $845.9 million at June 30, 2009, and $780.0 million at September 30, 2008.
The ratio of tangible common equity to risk weighted assets was 14.56 percent at September 30, 2009, up from 13.02 percent at June 30, 2009, and up from 11.04 percent at September 30, 2008. At September 30, 2009, the Tier 1 leverage ratio was 6.67 percent compared to 6.66 percent at June 30, 2009, and 7.27 percent at September 30, 2008. The decrease in the Tier 1 leverage ratio compared with the same quarter last year was due to the significant growth in investment securities, primarily Treasury and Ginnie Mae securities.
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 December 14, 2009 to shareholders of record at the close of business on November 30, 2009.
On October 9, 2009, the Company signed an agreement to sell certain assets of the Company's wholesale insurance business, Triad Insurance Agency, Inc. ("Triad"), to a third party. The agreement precludes the Company from competing directly or indirectly with Triad for a period of five years after the closing date of the sale. In connection with this sale, several employees of Triad were hired by the third party. The sale of Triad closed on October 22, 2009 and resulted in a pre-tax gain of approximately $1.5 million. Net income of Triad for the year ended December 31, 2008 was approximately $4.5 million.
Hawaii Economy
Hawaii's economy during the third quarter of 2009 continued to reflect weakness primarily the result of slow national economic conditions and lower visitor activity in the state. Visitor arrivals appear to be stabilizing. However, visitor spending continues to decline as a result of discounting. State general fund revenues have declined 14.4 percent during the first eight months of 2009 primarily due to a decline in general excise and use taxes. Total jobs have contracted 3.1 percent from the beginning of the year. The statewide unemployment rate improved slightly to 7.2 percent on a seasonally adjusted basis at the end of September compared with 7.3 percent at the end of June. Residential real estate prices in Hawaii continue to hold their value better than many U. S. mainland markets and months of inventory declined to 5.3 months at the end of September. More information on Hawaii economic trends is presented in Table 14.
Conference Call Information
The Company will review its third quarter 2009 financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The conference call will be accessible via teleconference and the Investor Relations link of Bank of Hawaii Corporation's web site, www.boh.com. The conference call number for participants in the United States is 800-510-0146. International participants should call 617-614-3449. No pass code is required. A replay of the conference call will be available for one week beginning Monday, October 26, 2009 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the pass code number 79433710 when prompted. A replay will also be available on the Company's web site, 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, 2008, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.
Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers, and governments in Hawaii, American Samoa, and the West Pacific. The Company's principal subsidiary, Bank of Hawaii, was founded in 1897 and is the largest independent financial institution in Hawaii. For more information about Bank of Hawaii Corporation, see the Company's web site, www.boh.com.
Bank of Hawaii Corporation and Subsidiaries
Financial Highlights Table 1
Three Months Ended Nine Months Ended
September June 30, September 30, September 30,
30,
(dollars in
thousands, 2009 2009 2008 2009 2008
except per
share amounts)
For the
Period:
Operating
Results
Net Interest $ 108,887 $ 102,851 $ 103,575 $ 308,800 $ 312,923
Income
Provision for 27,500 28,690 20,358 81,077 41,957
Credit Losses
Total
Noninterest 56,800 59,832 56,986 186,997 203,650
Income
Total
Noninterest 83,987 89,584 86,790 261,504 264,084
Expense
Net Income 36,471 31,006 47,409 103,517 152,906
Basic Earnings 0.76 0.65 1.00 2.17 3.20
Per Share
Diluted
Earnings Per 0.76 0.65 0.99 2.16 3.17
Share
Dividends
Declared Per 0.45 0.45 0.44 1.35 1.32
Share
Performance
Ratios
Return on 1.21 % 1.06 % 1.82 % 1.19 % 1.95 %
Average Assets
Return on
Average 16.44 14.49 24.17 16.24 26.26
Shareholders'
Equity
Efficiency 50.69 55.07 54.05 52.74 51.12
Ratio 1
Operating 11.77 (8.04 ) (12.02 ) (7.21 ) 8.65
Leverage 2
Net Interest 3.85 3.73 4.33 3.78 4.30
Margin 3
Dividend 59.21 69.23 44.00 62.21 41.25
Payout Ratio 4
Average
Shareholders' 7.34 7.30 7.55 7.34 7.41
Equity to
Average Assets
Average
Balances
Average Loans $ 6,034,956 $ 6,258,403 $ 6,512,453 $ 6,245,117 $ 6,543,871
and Leases
Average Assets 11,988,995 11,753,580 10,339,490 11,616,237 10,495,367
Average 9,131,064 9,222,130 7,772,535 9,036,247 7,893,972
Deposits
Average
Shareholders' 880,003 858,139 780,334 852,347 777,650
Equity
Market Price
Per Share of
Common Stock
Closing $ 41.54 $ 35.83 $ 53.45 $ 41.54 $ 53.45
High 42.92 41.42 70.00 45.24 70.00
Low 33.65 31.35 37.46 25.33 37.46
September 30, June 30, December 31, September 30,
2009 2009 2008 2008
As of Period
End:
Balance Sheet
Totals
Loans and $ 5,931,358 $ 6,149,911 $ 6,530,233 $ 6,539,458
Leases
Total Assets 12,208,025 12,194,695 10,763,475 10,335,047
Total Deposits 9,250,100 9,019,661 8,292,098 7,658,484
Long-Term Debt 91,424 91,432 203,285 204,616
Total
Shareholders' 902,799 845,885 790,704 780,020
Equity
Asset Quality
Allowance for
Loan and Lease $ 142,658 $ 137,416 $ 123,498 $ 115,498
Losses
Non-Performing 48,536 39,054 14,949 5,927
Assets 5
Financial
Ratios
Allowance to
Loans and 2.41 % 2.23 % 1.89 % 1.77 %
Leases
Outstanding
Tier 1 Capital 13.43 12.56 11.24 11.14
Ratio
Total Capital 14.70 13.82 12.49 12.40
Ratio
Leverage Ratio 6.67 6.66 7.30 7.27
Tangible
Common Equity 7.11 6.65 7.01 7.20
to Total
Assets 6
Tangible
Common Equity
to 14.56 13.02 11.28 11.04
Risk-Weighted
Assets 6
Non-Financial
Data
Full-Time
Equivalent 2,474 2,533 2,581 2,573
Employees
Branches and 85 85 85 84
Offices
ATMs 485 486 462 467
1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income). 2 Operating leverage is defined as the percentage change in income before the provision for credit losses and the provision for income taxes. Measures are presented on a linked quarter basis. 3 Net interest margin is defined as net interest income, on a taxable equivalent basis, as a percentage of average earning assets. 4 Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share. 5 Excluded from non-performing assets are non-accrual loans held for sale of $7.7 million and $5.2 million as of September 30, 2009 and June 30, 2009, respectively. 6 Tangible common equity, a non-GAAP financial measure, is defined by the Company as shareholders' equity minus goodwill and intangible assets. Intangible assets are included as a component of other assets in the Consolidated Statements of Condition.
Bank of Hawaii Corporation and Subsidiaries
Net Significant Income (Expense) Items Table 2
Three Months Ended Nine Months Ended
September June 30, September 30, September 30,
30,
(dollars in 2009 2009 2008 2009 2008
thousands)
Leveraged
Lease
Residual $ (968 ) $ - $ - $ (968 ) $ -
Value
Impairment
SILO
Leveraged - - (3,981 ) - (3,981 )
Lease
Gain on
Disposal of - 2,782 - 12,818 11,588
Leased
Equipment
Gain on Sale
of Insurance - 852 - 852 -
Subsidiary
Gain on
Mandatory - - - - 13,737
Redemption of
Visa Shares
Increase in
Allowance for (5,242 ) (3,000 ) (13,000 ) (19,160 ) (24,500 )
Loan and
Lease Losses
FDIC Special - (5,744 ) - (5,744 ) -
Assessment
Market
Premium on
Repurchased - - - (875 ) -
Long-Term
Privately
Placed Debt
Cash Grants
for the - - - - (4,640 )
Purchase of
Company Stock
Employee
Incentive - - (2,000 ) - (6,386 )
Awards
Legal - - - (1,500 ) (3,016 )
Contingencies
Bank of
Hawaii
Charitable - - - - (2,250 )
Foundation
and Other
Contributions
Call Premium
on Capital - - - - (991 )
Securities
Separation - - - - (615 )
Expense
Reversal of
Visa Legal - - - - 5,649
Costs
Significant
Income
(Expense)
Items Before (6,210 ) (5,110 ) (18,981 ) (14,577 ) (15,405 )
the Benefit
for Income
Taxes
Income Tax
Impact
Related to (373 ) (286 ) (12,920 ) 3,213 (14,331 )
Lease
Transactions
Income Tax (1,835 ) (2,762 ) (5,250 ) (9,249 ) (8,095 )
Impact
Net
Significant
Income $ (4,002 ) $ (2,062 ) $ (811 ) $ (8,541 ) $ 7,021
(Expense)
Items
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income Table 3
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,
(dollars in
thousands, except 2009 2009 20081 2009 20081
per share amounts)
Interest Income
Interest and Fees
on Loans and $ 79,530 $ 83,342 $ 92,744 $ 249,464 $ 295,116
Leases
Income on
Investment
Securities
Trading - - 1,174 594 3,543
Available-for-Sale 46,419 38,155 35,152 116,875 104,724
Held-to-Maturity 2,179 2,369 2,870 7,115 9,142
Deposits 3 5 33 18 432
Funds Sold 320 526 141 1,423 1,553
Other 277 276 490 829 1,405
Total Interest 128,728 124,673 132,604 376,318 415,915
Income
Interest Expense
Deposits 12,235 14,481 17,736 43,741 65,439
Securities Sold
Under Agreements 6,394 6,477 7,675 19,523 25,780
to Repurchase
Funds Purchased 5 5 507 15 1,410
Short-Term - - 13 - 59
Borrowings
Long-Term Debt 1,207 859 3,098 4,239 10,304
Total Interest 19,841 21,822 29,029 67,518 102,992
Expense
Net Interest 108,887 102,851 103,575 308,800 312,923
Income
Provision for 27,500 28,690 20,358 81,077 41,957
Credit Losses
Net Interest
Income After 81,387 74,161 83,217 227,723 270,966
Provision for
Credit Losses
Noninterest Income
Trust and Asset 10,915 11,881 14,193 34,428 44,739
Management
Mortgage Banking 4,656 5,443 621 18,777 7,656
Service Charges on 14,014 12,910 13,045 40,310 37,539
Deposit Accounts
Fees, Exchange,
and Other Service 14,801 15,410 15,604 45,187 47,098
Charges
Investment
Securities Gains (5 ) 12 159 63 446
(Losses), Net
Insurance 7,304 4,744 5,902 17,689 18,622
Other 5,115 9,432 7,462 30,543 47,550
Total Noninterest 56,800 59,832 56,986 186,997 203,650
Income
Noninterest
Expense
Salaries and 46,387 44,180 46,764 137,595 148,221
Benefits
Net Occupancy 10,350 10,008 11,795 30,686 33,581
Net Equipment 4,502 4,502 4,775 13,320 13,570
Professional Fees 2,642 4,005 3,270 9,196 8,471
FDIC Insurance 3,290 8,987 321 14,091 817
Other 16,816 17,902 19,865 56,616 59,424
Total Noninterest 83,987 89,584 86,790 261,504 264,084
Expense
Income Before
Provision for 54,200 44,409 53,413 153,216 210,532
Income Taxes
Provision for 17,729 13,403 6,004 49,699 57,626
Income Taxes
Net Income $ 36,471 $ 31,006 $ 47,409 $ 103,517 $ 152,906
Basic Earnings Per $ 0.76 $ 0.65 $ 1.00 $ 2.17 $ 3.20
Share
Diluted Earnings $ 0.76 $ 0.65 $ 0.99 $ 2.16 $ 3.17
Per Share
Dividends Declared $ 0.45 $ 0.45 $ 0.44 $ 1.35 $ 1.32
Per Share
Basic Weighted 47,745,375 47,682,604 47,518,078 47,665,146 47,738,245
Average Shares
Diluted Weighted 48,045,873 47,948,531 48,057,965 47,930,271 48,295,901
Average Shares
1Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition Table 4
September 30, June 30, December 31, September 30,
(dollars in 2009 2009 2008 20081
thousands)
Assets
Interest-Bearing $ 5,863 $ 4,537 $ 5,094 $ 13,845
Deposits
Funds Sold 401,200 656,000 405,789 -
Investment
Securities
Trading - - 91,500 90,993
Available-for-Sale 4,827,588 4,292,911 2,519,239 2,572,111
Held-to-Maturity
(Fair Value of
$201,118; $214,484; 194,444 209,807 239,635 249,083
$242,175; and
$245,720)
Loans Held for Sale 19,346 40,994 21,540 14,903
Loans and Leases 5,931,358 6,149,911 6,530,233 6,539,458
Allowance for Loan (142,658 ) (137,416 ) (123,498 ) (115,498 )
and Lease Losses
Net Loans and 5,788,700 6,012,495 6,406,735 6,423,960
Leases
Total Earning 11,237,141 11,216,744 9,689,532 9,364,895
Assets
Cash and
Noninterest-Bearing 291,480 294,022 385,599 285,762
Deposits
Premises and 110,173 112,681 116,120 118,333
Equipment
Customers' 950 2,084 1,308 1,250
Acceptances
Accrued Interest 43,047 43,042 39,905 41,061
Receivable
Foreclosed Real 201 438 428 293
Estate
Mortgage Servicing 25,437 24,731 21,057 27,707
Rights
Goodwill 34,959 34,959 34,959 34,959
Other Assets 464,637 465,994 474,567 460,787
Total Assets $ 12,208,025 $ 12,194,695 $ 10,763,475 $ 10,335,047
Liabilities
Deposits
Noninterest-Bearing $ 2,055,872 $ 2,109,270 $ 1,754,724 $ 1,592,251
Demand
Interest-Bearing 1,588,705 1,589,300 1,854,611 1,708,183
Demand
Savings 4,365,257 4,054,039 3,104,863 2,780,798
Time 1,240,266 1,267,052 1,577,900 1,577,252
Total Deposits 9,250,100 9,019,661 8,292,098 7,658,484
Funds Purchased 8,670 8,670 15,734 189,700
Short-Term 7,200 10,000 4,900 10,621
Borrowings
Securities Sold
Under Agreements to 1,524,755 1,799,794 1,028,835 1,109,431
Repurchase
Long-Term Debt
(includes $119,275
and $120,598
carried at fair 91,424 91,432 203,285 204,616
value as of
December 31, 2008
and September 30,
2008, respectively)
Banker's 950 2,084 1,308 1,250
Acceptances
Retirement Benefits 43,918 54,286 54,776 22,438
Payable
Accrued Interest 9,740 7,765 13,837 12,702
Payable
Taxes Payable and 254,375 226,936 229,699 240,795
Deferred Taxes
Other Liabilities 114,094 128,182 128,299 104,990
Total Liabilities 11,305,226 11,348,810 9,972,771 9,555,027
Shareholders'
Equity
Common Stock ($.01
par value;
authorized
500,000,000 shares;
issued /
outstanding:
September 30, 2009
- 57,028,554 /
47,937,543; June 569 569 568 568
30, 2009 -
57,028,940 /
47,881,083;
December 31, 2008 -
57,019,887 /
47,753,371; and
September 30, 2008
- 57,022,797 /
47,707,629)
Capital Surplus 492,346 491,784 492,515 491,419
Accumulated Other
Comprehensive 37,307 (1,870 ) (28,888 ) (18,643 )
Income (Loss)
Retained Earnings 825,709 811,121 787,924 770,373
Treasury Stock, at
Cost (Shares:
September 30, 2009
- 9,091,011; June
30, 2009 - (453,132 ) (455,719 ) (461,415 ) (463,697 )
9,147,857; December
31, 2008 -
9,266,516; and
September 30, 2008
- 9,315,168)
Total Shareholders' 902,799 845,885 790,704 780,020
Equity
Total Liabilities
and Shareholders' $ 12,208,025 $ 12,194,695 $ 10,763,475 $ 10,335,047
Equity
1 Certain prior period information has been reclassified to conform to current
presentation.
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity Table 5
Accum.
Other
Compre-
hensive Compre-
Common Capital (Loss) Retained Treasury hensive
(dollars in Total Stock Surplus Income Earnings Stock Income
thousands)
Balance as of $ 790,704 $ 568 $ 492,515 $ (28,888 ) $ 787,924 $ (461,415 )
December 31, 2008
Comprehensive
Income:
Net Income 103,517 - - - 103,517 - $ 103,517
Other
Comprehensive
Income, Net of
Tax:
Change in
Unrealized Gains
and Losses on 65,121 - - 65,121 - - 65,121
Investment
Securities
Available-for-Sale
Amortization of
Net Loss Related
to Pension and 1,074 - - 1,074 - - 1,074
Postretirement
Benefit Plans
Total
Comprehensive $ 169,712
Income
Share-Based 1,700 - 1,700 - - -
Compensation
Common Stock
Issued under
Purchase and
Equity 6,202 1 (1,869 ) - (1,101 ) 9,171
Compensation Plans
and Related Tax
Benefits (209,847
shares)
Common Stock
Repurchased (888 ) - - - - (888 )
(25,675 shares)
Cash Dividends (64,631 ) - - - (64,631 ) -
Paid
Balance as of $ 902,799 $ 569 $ 492,346 $ 37,307 $ 825,709 $ (453,132 )
September 30, 2009
Balance as of $ 750,255 $ 567 $ 484,790 $ (5,091 ) $ 688,638 $ (418,649 )
December 31, 2007
Cumulative-Effect
Adjustment of a
Change in
Accounting
Principle, Net of
Tax:
Adoption of
Accounting
Principles Related (2,736 ) - - - (2,736 ) -
to the Fair Value
Option
Comprehensive
Income:
Net Income 152,906 - - - 152,906 - $ 152,906
Other
Comprehensive
Income, Net of
Tax:
Change in
Unrealized Gains
and Losses on (13,699 ) - - (13,699 ) - - (13,699 )
Investment
Securities
Available-for-Sale
Amortization of
Net Loss Related
to Pension and 147 - - 147 - - 147
Postretirement
Benefit Plans
Total
Comprehensive $ 139,354
Income
Share-Based 4,480 - 4,480 - - -
Compensation
Common Stock
Issued under
Purchase and
Equity 13,728 1 2,149 - (5,075 ) 16,653
Compensation Plans
and Related Tax
Benefits (378,382
shares)
Common Stock
Repurchased (61,701 ) - - - - (61,701 )
(1,260,398 shares)
Cash Dividends (63,360 ) - - - (63,360 ) -
Paid
Balance as of $ 780,020 $ 568 $ 491,419 $ (18,643 ) $ 770,373 $ (463,697 )
September 30, 2008
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable Equivalent Basis Table 6a
Three Months Ended Three Months Ended Three Months Ended
September 30, 2009 June 30, 2009 September 30, 20081
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
(dollars in Balance Expense Rate Balance Expense Rate Balance Expense Rate
millions)
Earning Assets
Interest-Bearing $ 5.1 $ - 0.28 % $ 5.2 $ - 0.36 % $ 6.4 $ - 2.06 %
Deposits
Funds Sold 489.7 0.3 0.26 833.2 0.5 0.25 28.4 0.1 1.96
Investment
Securities
Trading - - - - - - 92.6 1.2 5.07
Available-for-Sale 4,491.2 46.7 4.16 3,662.1 38.5 4.21 2,601.2 35.4 5.44
Held-to-Maturity 202.0 2.2 4.31 219.9 2.4 4.31 255.4 2.9 4.50
Loans Held for Sale 25.2 0.2 2.95 24.1 0.2 4.21 6.6 0.1 6.34
Loans and Leases 2
Commercial and 884.4 9.0 4.06 984.1 9.9 4.02 1,049.7 13.8 5.23
Industrial
Commercial Mortgage 787.0 10.2 5.14 763.8 9.9 5.22 695.3 10.5 6.04
Construction 140.9 1.4 3.81 144.5 1.5 4.03 161.4 2.3 5.67
Commercial Lease 464.0 3.0 2.56 450.2 3.5 3.13 472.9 0.2 0.15
Financing
Residential 2,273.8 33.0 5.81 2,359.0 34.6 5.88 2,480.7 37.6 6.05
Mortgage
Home Equity 963.3 12.3 5.08 999.3 12.6 5.07 994.6 14.4 5.77
Automobile 304.5 6.1 7.88 325.5 6.5 7.96 403.6 8.2 8.09
Other 3 217.1 4.3 7.95 232.0 4.6 7.89 254.3 5.6 8.80
Total Loans and 6,035.0 79.3 5.24 6,258.4 83.1 5.32 6,512.5 92.6 5.67
Leases
Other 79.7 0.3 1.39 79.7 0.3 1.39 79.6 0.5 2.46
Total Earning 11,327.9 129.0 4.54 11,082.6 125.0 4.52 9,582.7 132.8 5.53
Assets4
Cash and
Noninterest-Bearing 203.5 203.9 274.3
Deposits
Other Assets 457.6 467.1 482.5
Total Assets $ 11,989.0 $ 11,753.6 $ 10,339.5
Interest-Bearing
Liabilities
Interest-Bearing
Deposits
Demand $ 1,625.6 0.2 0.06 $ 1,907.7 0.3 0.07 $ 1,793.0 1.5 0.32
Savings 4,190.2 6.6 0.63 4,036.9 7.8 0.77 2,790.3 6.3 0.90
Time 1,264.7 5.4 1.69 1,330.6 6.4 1.92 1,594.8 9.9 2.48
Total
Interest-Bearing 7,080.5 12.2 0.69 7,275.2 14.5 0.80 6,178.1 17.7 1.14
Deposits
Short-Term 18.1 - 0.12 16.4 - 0.12 116.7 0.5 1.74
Borrowings
Securities Sold
Under Agreements to 1,464.3 6.4 1.71 1,168.2 6.5 2.20 1,077.4 7.7 2.80
Repurchase
Long-Term Debt 91.4 1.2 5.26 71.1 0.8 4.84 205.1 3.1 6.04
Total
Interest-Bearing 8,654.3 19.8 0.91 8,530.9 21.8 1.02 7,577.3 29.0 1.52
Liabilities
Net Interest Income $ 109.2 $ 103.2 $ 103.8
Interest Rate 3.63 % 3.50 % 4.01 %
Spread
Net Interest Margin 3.85 % 3.73 % 4.33 %
Noninterest-Bearing 2,050.5 1,946.9 1,594.4
Demand Deposits
Other Liabilities 404.2 417.7 387.5
Shareholders' 880.0 858.1 780.3
Equity
Total Liabilities
and Shareholders' $ 11,989.0 $ 11,753.6 $ 10,339.5
Equity
1 Certain prior period information has been reclassified to conform to current presentation.
2 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.
3 Comprised of other consumer revolving credit, installment, and consumer lease financing.
4 Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%,
of $329,000, $331,000, and $234,000 for the three months ended September 30, 2009, June 30, 2009, and September
30, 2008, respectively.
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable Equivalent Basis Table 6b
Nine Months Ended Nine Months Ended
September 30, 2009 September 30, 20081
Average Income/ Yield/ Average Income/ Yield/
(dollars in Balance Expense Rate Balance Expense Rate
millions)
Earning Assets
Interest-Bearing $ 5.0 $ - 0.49 % $ 22.2 $ 0.4 2.56 %
Deposits
Funds Sold 743.7 1.4 0.25 82.6 1.6 2.47
Investment
Securities
Trading 16.1 0.6 4.92 95.3 3.5 4.96
Available-for-Sale 3,600.8 117.8 4.36 2,627.5 105.5 5.35
Held-to-Maturity 218.9 7.1 4.33 270.1 9.1 4.51
Loans Held for Sale 23.7 0.7 3.82 8.8 0.4 5.79
Loans and Leases 2
Commercial and 966.1 29.4 4.06 1,058.5 44.6 5.64
Industrial
Commercial Mortgage 760.7 29.7 5.23 669.2 31.1 6.21
Construction 146.5 4.4 4.02 179.4 8.2 6.09
Commercial Lease 459.0 10.1 2.95 473.8 8.3 2.33
Financing
Residential 2,356.1 104.0 5.89 2,490.5 113.7 6.09
Mortgage
Home Equity 996.9 38.0 5.09 990.6 45.1 6.07
Automobile 328.6 19.5 7.93 421.7 25.7 8.14
Other 3 231.3 13.7 7.90 260.2 18.0 9.22
Total Loans and 6,245.2 248.8 5.32 6,543.9 294.7 6.01
Leases
Other 79.7 0.8 1.39 79.6 1.4 2.35
Total Earning 10,933.1 377.2 4.60 9,730.0 416.6 5.71
Assets4
Cash and
Noninterest-Bearing 216.8 280.4
Deposits
Other Assets 466.3 485.0
Total Assets $ 11,616.2 $ 10,495.4
Interest-Bearing
Liabilities
Interest-Bearing
Deposits
Demand $ 1,806.4 0.9 0.06 $ 1,635.6 4.9 0.40
Savings 3,922.4 22.6 0.77 2,802.2 22.1 1.06
Time 1,364.5 20.3 1.98 1,662.6 38.4 3.09
Total
Interest-Bearing 7,093.3 43.8 0.82 6,100.4 65.4 1.43
Deposits
Short-Term 17.7 - 0.11 86.0 1.5 2.25
Borrowings
Securities Sold
Under Agreements to 1,191.2 19.5 2.16 1,100.5 25.8 3.10
Repurchase
Long-Term Debt 103.4 4.2 5.47 223.0 10.3 6.16
Total
Interest-Bearing 8,405.6 67.5 1.07 7,509.9 103.0 1.83
Liabilities
Net Interest Income $ 309.7 $ 313.6
Interest Rate 3.53 % 3.88 %
Spread
Net Interest Margin 3.78 % 4.30 %
Noninterest-Bearing 1,943.0 1,793.5
Demand Deposits
Other Liabilities 415.3 414.3
Shareholders' 852.3 777.7
Equity
Total Liabilities
and Shareholders' $ 11,616.2 $ 10,495.4
Equity
1 Certain prior period information has been reclassified to conform to current
presentation.
2 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.
3 Comprised of other consumer revolving credit, installment, and consumer lease
financing.
4 Interest income includes taxable equivalent basis adjustments, based upon a
federal statutory tax rate of 35%, of $886,000 and $711,000 for the nine months
ended September 30, 2009 and 2008, respectively.
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable Equivalent Table 7a
Basis
Three Months Ended September 30, 2009
Compared to June 30, 2009
(dollars in millions) Volume1 Rate1 Time1 Total
Change in Interest Income:
Funds Sold $ (0.2 ) $ - $ - $ (0.2 )
Investment Securities
Available-for-Sale 8.4 (0.5 ) 0.3 8.2
Held-to-Maturity (0.2 ) - - (0.2 )
Loans and Leases
Commercial and Industrial (1.1 ) 0.1 0.1 (0.9 )
Commercial Mortgage 0.3 (0.1 ) 0.1 0.3
Construction - (0.1 ) - (0.1 )
Commercial Lease Financing 0.1 (0.6 ) - (0.5 )
Residential Mortgage (1.5 ) (0.5 ) 0.4 (1.6 )
Home Equity (0.3 ) - - (0.3 )
Automobile (0.4 ) (0.1 ) 0.1 (0.4 )
Other 2 (0.3 ) - - (0.3 )
Total Loans and Leases (3.2 ) (1.3 ) 0.7 (3.8 )
Total Change in Interest Income 4.8 (1.8 ) 1.0 4.0
Change in Interest Expense:
Interest-Bearing Deposits
Demand (0.1 ) - - (0.1 )
Savings 0.3 (1.5 ) - (1.2 )
Time (0.3 ) (0.8 ) 0.1 (1.0 )
Total Interest-Bearing Deposits (0.1 ) (2.3 ) 0.1 (2.3 )
Securities Sold Under Agreements to 1.5 (1.7 ) 0.1 (0.1 )
Repurchase
Long-Term Debt 0.3 0.1 - 0.4
Total Change in Interest Expense 1.7 (3.9 ) 0.2 (2.0 )
Change in Net Interest Income $ 3.1 $ 2.1 $ 0.8 $ 6.0
1 The changes for each category of interest income and expense are
allocated between the portion of changes attributable to the variance in
volume, rate, and time for that category.
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 Table 7b
Equivalent Basis
Three Months Ended September 30, 2009
Compared to September 30, 2008
(dollars in millions) Volume1 Rate1 Total
Change in Interest Income:
Funds Sold $ 0.4 $ (0.2 ) $ 0.2
Investment Securities
Trading (0.6 ) (0.6 ) (1.2 )
Available-for-Sale 21.1 (9.8 ) 11.3
Held-to-Maturity (0.6 ) (0.1 ) (0.7 )
Loans Held for Sale 0.2 (0.1 ) 0.1
Loans and Leases
Commercial and Industrial (2.0 ) (2.8 ) (4.8 )
Commercial Mortgage 1.3 (1.6 ) (0.3 )
Construction (0.2 ) (0.7 ) (0.9 )
Commercial Lease Financing - 2.8 2.8
Residential Mortgage (3.1 ) (1.5 ) (4.6 )
Home Equity (0.4 ) (1.7 ) (2.1 )
Automobile (1.9 ) (0.2 ) (2.1 )
Other 2 (0.8 ) (0.5 ) (1.3 )
Total Loans and Leases (7.1 ) (6.2 ) (13.3 )
Other - (0.2 ) (0.2 )
Total Change in Interest Income 13.4 (17.2 ) (3.8 )
Change in Interest Expense:
Interest-Bearing Deposits
Demand (0.2 ) (1.1 ) (1.3 )
Savings 2.6 (2.3 ) 0.3
Time (1.8 ) (2.7 ) (4.5 )
Total Interest-Bearing Deposits 0.6 (6.1 ) (5.5 )
Short-Term Borrowings (0.2 ) (0.3 ) (0.5 )
Securities Sold Under Agreements to 2.2 (3.5 ) (1.3 )
Repurchase
Long-Term Debt (1.5 ) (0.4 ) (1.9 )
Total Change in Interest Expense 1.1 (10.3 ) (9.2 )
Change in Net Interest Income $ 12.3 $ (6.9 ) $ 5.4
1 The changes for each category of interest income and expense are
allocated between the portion of changes attributable to the variance in
volume and rate for that category.
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 Table 7c
Equivalent Basis
Nine Months Ended September 30, 2009
Compared to September 30, 2008
(dollars in millions) Volume1 Rate1 Total
Change in Interest Income:
Interest-Bearing Deposits $ (0.2 ) $ (0.2 ) $ (0.4 )
Funds Sold 2.3 (2.5 ) (0.2 )
Investment Securities
Trading (2.9 ) - (2.9 )
Available-for-Sale 34.2 (21.9 ) 12.3
Held-to-Maturity (1.7 ) (0.3 ) (2.0 )
Loans Held for Sale 0.5 (0.2 ) 0.3
Loans and Leases
Commercial and Industrial (3.5 ) (11.7 ) (15.2 )
Commercial Mortgage 3.9 (5.3 ) (1.4 )
Construction (1.3 ) (2.5 ) (3.8 )
Commercial Lease Financing (0.3 ) 2.1 1.8
Residential Mortgage (6.1 ) (3.6 ) (9.7 )
Home Equity 0.3 (7.4 ) (7.1 )
Automobile (5.6 ) (0.6 ) (6.2 )
Other 2 (1.9 ) (2.4 ) (4.3 )
Total Loans and Leases (14.5 ) (31.4 ) (45.9 )
Other - (0.6 ) (0.6 )
Total Change in Interest Income 17.7 (57.1 ) (39.4 )
Change in Interest Expense:
Interest-Bearing Deposits
Demand 0.5 (4.5 ) (4.0 )
Savings 7.5 (7.0 ) 0.5
Time (6.1 ) (12.0 ) (18.1 )
Total Interest-Bearing Deposits 1.9 (23.5 ) (21.6 )
Short-Term Borrowings (0.7 ) (0.8 ) (1.5 )
Securities Sold Under Agreements to 2.0 (8.3 ) (6.3 )
Repurchase
Long-Term Debt (5.0 ) (1.1 ) (6.1 )
Total Change in Interest Expense (1.8 ) (33.7 ) (35.5 )
Change in Net Interest Income $ 19.5 $ (23.4 ) $ (3.9 )
1 The changes for each category of interest income and expense are
allocated between the portion of changes attributable to the variance in
volume and rate for that category.
2 Comprised of other consumer revolving credit, installment, and consumer
lease financing.
Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits Table 8
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,
(dollars in 2009 2009 2008 2009 2008
thousands)
Salaries $ 29,988 $ 30,732 $ 30,190 $ 90,565 $ 89,112
Incentive 5,524 3,407 5,969 12,223 16,358
Compensation
Share-Based
Compensation and
Cash Grants for 595 604 1,180 1,986 8,592
the Purchase of
Company Stock
Commission 1,523 1,750 1,653 5,528 5,518
Expense
Retirement and 3,962 3,804 3,097 12,385 11,822
Other Benefits
Payroll Taxes 2,176 2,344 2,162 8,020 8,067
Medical, Dental,
and Life 2,619 1,236 2,452 6,519 7,421
Insurance
Separation - 303 61 369 1,331
Expense
Total Salaries $ 46,387 $ 44,180 $ 46,764 $ 137,595 $ 148,221
and Benefits
Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances Table 9
September June 30, March 31, December September
30, 31, 30,
(dollars in 2009 2009 2009 2008 2008 (1)
thousands)
Commercial
Commercial
and $ 845,056 $ 932,444 $ 1,000,640 $ 1,053,781 $ 1,077,314
Industrial
Commercial 777,498 788,226 726,193 740,779 708,961
Mortgage
Construction 137,414 140,455 153,754 153,952 153,364
Lease 458,696 468,030 454,822 468,140 467,279
Financing
Total 2,218,664 2,329,155 2,335,409 2,416,652 2,406,918
Commercial
Consumer
Residential 2,246,729 2,309,971 2,402,061 2,461,824 2,478,925
Mortgage
Home Equity 952,076 977,632 1,016,381 1,033,221 1,004,437
Automobile 299,657 309,877 343,642 369,789 395,015
Other 2 214,232 223,276 241,233 248,747 254,163
Total Consumer 3,712,694 3,820,756 4,003,317 4,113,581 4,132,540
Total Loans $ 5,931,358 $ 6,149,911 $ 6,338,726 $ 6,530,233 $ 6,539,458
and Leases
Higher Risk Loans Outstanding
September June 30, March 31, December September
30, 31, 30,
(dollars in 2009 2009 2009 2008 2008
thousands)
Residential
Home Building $ 38,592 $ 22,850 $ 8,536 $ 5,001 $ 6,944
3
Residential 43,128 47,871 50,663 54,483 58,401
Land Loans 4
Home Equity 24,339 21,832 19,431 14,917 14,028
Loans 5
Air
Transportation 60,996 62,148 76,303 79,692 79,758
6
1 Certain prior period information has been reclassified to conform to current
presentation.
2 Comprised of other revolving credit, installment, and lease financing.
3 Residential home building loans are collateralized by residential
developments and comprised 62% of total commercial construction as of September
30, 2009. Higher risk exposures represent 45% of total residential home
building and include $16,462 outside of Oahu and $10,282 in non-performing
assets as of September 30, 2009.
4 Included in residential mortgage, residential land loans are collateralized
by land and includes $36,613 outside of Oahu as of September 30, 2009.
5 Current FICO of 600 or less and original LTV above 70%, all originated after
2004.
6 Equity in nine leases, eight of which are leveraged, all to passenger
carriers, one of which is based outside the United States as of September 30,
2009.
Deposits
September June 30, March 31, December September
30, 31, 30,
(dollars in 2009 2009 2009 2008 2008
thousands)
Consumer $ 4,776,626 $ 4,747,612 $ 4,702,494 $ 4,593,248 $ 4,460,965
Commercial 4,002,068 3,828,521 3,645,842 3,221,668 2,835,699
Public and 471,406 443,528 864,455 477,182 361,820
Other
Total Deposits $ 9,250,100 $ 9,019,661 $ 9,212,791 $ 8,292,098 $ 7,658,484
Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days Table 10
or More
September 30, June 30, March 31, December 31, September
30,
(dollars in thousands) 2009 2009 2009 2008 2008
Non-Performing Assets1
Non-Accrual Loans and
Leases
Commercial
Commercial and $ 9,924 $ 10,511 $ 21,839 $ 3,869 $ 574
Industrial
Commercial Mortgage 1,193 1,219 - - -
Construction 15,534 6,548 5,001 5,001 -
Lease Financing 690 956 910 133 149
Total Commercial 27,341 19,234 27,750 9,003 723
Consumer
Residential Mortgage 16,718 16,265 9,230 3,904 3,749
Home Equity 3,726 2,567 1,620 1,614 1,162
Other 2 550 550 1,383 - -
Total Consumer 20,994 19,382 12,233 5,518 4,911
Total Non-Accrual Loans 48,335 38,616 39,983 14,521 5,634
and Leases
Foreclosed Real Estate 201 438 346 428 293
Total Non-Performing $ 48,536 $ 39,054 $ 40,329 $ 14,949 $ 5,927
Assets
Accruing Loans and
Leases Past Due 90 Days
or More
Commercial
Commercial and $ 137 $ 13 $ - $ 6,785 $ -
Industrial
Construction 3,005 - - - -
Lease Financing - - 257 268 -
Total Commercial 3,142 13 257 7,053 -
Consumer
Residential Mortgage 5,951 4,657 4,794 4,192 3,455
Home Equity 1,698 2,879 1,720 1,077 296
Automobile 749 769 776 743 758
Other 2 739 1,270 1,100 1,134 926
Total Consumer 9,137 9,575 8,390 7,146 5,435
Total Accruing Loans and
Leases Past Due 90 Days $ 12,279 $ 9,588 $ 8,647 $ 14,199 $ 5,435
or More
Restructured Loans Not
Included in Non-Accrual $ 7,578 $ 2,307 $ - $ - $ -
Loans and Accruing Loans
Past Due 90 Days or More
Total Loans and Leases $ 5,931,358 $ 6,149,911 $ 6,338,726 $ 6,530,233 $ 6,539,458
Ratio of Non-Accrual
Loans and Leases to 0.81 % 0.63 % 0.63 % 0.22 % 0.09 %
Total Loans and Leases
Ratio of Non-Performing
Assets to Total Loans 0.82 % 0.63 % 0.64 % 0.23 % 0.09 %
and Leases and
Foreclosed Real Estate
Ratio of Commercial
Non-Performing Assets to 1.23 % 0.83 % 1.19 % 0.37 % 0.03 %
Total Commercial Loans
and Leases
Ratio of Consumer
Non-Performing Assets to
Total Consumer Loans and 0.57 % 0.52 % 0.31 % 0.14 % 0.13 %
Leases and Foreclosed
Real Estate
Ratio of Non-Performing
Assets and Accruing
Loans and Leases Past
Due 90 Days or More to 1.03 % 0.79 % 0.77 % 0.45 % 0.17 %
Total Loans and Leases
and Foreclosed Real
Estate
Quarter to Quarter
Changes in
Non-Performing Assets1
Balance at Beginning of $ 39,054 $ 40,329 $ 14,949 $ 5,927 $ 6,680
Quarter
Additions 22,856 22,459 29,164 15,464 1,355
Reductions
Payments (6,899 ) (15,593 ) (874 ) (2,440 ) (955 )
Return to Accrual (3,373 ) (230 ) (768 ) (1,468 ) (756 )
Status
Sales of Foreclosed (237 ) - (82 ) - -
Real Estate
Charge-offs/Write-downs (2,865 ) (7,911 ) (2,060 ) (2,534 ) (397 )
Total Reductions (13,374 ) (23,734 ) (3,784 ) (6,442 )
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