Bank Of Hawaii Corporation · NYSE:BOH
Bank Of Hawaii — Q1 2022 Earnings Presentation
29 slides from Bank Of Hawaii's earnings presentation, Apr 25, 2022
Slide 1: Bank of Hawaii Corporation First Quarter 2022 Financial Report
Bank of Hawaii Corporation first quarter 2022 financial report April 25, 2022 Exhibit 99.2
Slide 2: Forward-looking statements
this presentation, and other statements made by the Company in connection with it, may contain forward-looking statements concerning, among other things, forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those foreca
Slide 3: Unemployment experience & forecast
unemployment experience & forecast source: University of Hawaii Economic Research Organization (UHERO), seasonally adjusted Hawaii unemployment rate 3
Slide 4: Oahu real estate
Oahu real estate Oahu market indicators – 2022 vs 2021 4 source: Honolulu Board of Realtors, compiled from MLS data continued strength in Oahu real estate
Slide 5: Daily arrivals total passenger count
daily arrivals total passenger count* 5 *source: Department of Business, Economic Development, and Tourism, excluding from Canada Dec-31
Slide 6: 1Q financial update
4H Bank of Hawaii Corporation 1Q financial update
Slide 7: Core loan and NII growth
7 core loan and NII growth note: core loans excludes PPP balances. core NII and NIM excludes all fees and interest income generated by PPP and one-time items (including 4Q21 $0.9MM deferred mortgage loan fee adjustment) strong core loan and steady NII growth excluding PPP continues
Slide 8: Ample liquidity
ample liquidity loan to deposit ratio compared with peers strong liquidity to fund continued growth 8 note: S&P Regional Banking Index excluding banks greater than $50bn as of 1/4/22 local peer bank average contains BOH, FHB, CPB, ASB, and TBNK; data unavailable for ASB prior to 2008 and FHB prior t
Slide 9: Unique deposit market
9 source: S&P Capital IQ, FDIC Annual Summary of Deposits deposit data as of 6/30/21 other includes Territorial Bancorp Inc., Hawaii National Bancshares Inc., HomeStreet Inc., CBB Bancorp Inc., First Foundation Inc., RBB Bancorp, and First Citizens BancShares Inc. $56.2bn unique deposit market FDIC
Slide 10: Strong core deposit base
strong core deposit base 10 94% core consumer and commercial customers 96% core checking and savings deposits note: as of March 31, 2022
Slide 11: Attractive funding costs
attractive funding costs 11 strong low cost, long duration core deposit base helps to mitigate rising rates $ in millions 5-year CAGR with rising rates: 3.6% 7-year CAGR: 6.6% note: S&P Regional Banking Index excluding banks greater than $50bn as of 1/4/22
Slide 12: Asset sensitive
asset sensitive 4H Bank of Hawai ~— Corporation | estimated impact on future annual NII 9.8% 42% sid | = = (1.0)%) (3.1)% +200 +100 100 Mgradual change “immediate change
Slide 13: Financial summary
financial summary $ in millions, except per share amounts 13 note: numbers may not add up due to rounding
Slide 14: Disciplined expenses
disciplined expenses $ in millions 14 normalized expenses remained flat as continued innovation spend offset by savings in core expenses note: numbers may not add up due to rounding 4Q21 one-time items include $1.2 million related to increase in vacation carryover limits; 1Q22 seasonal expenses of $
Slide 15: Performance metrics
performance metrics 15 note: 1Q22 regulatory capital ratios are preliminary
Slide 16: 1Q credit update
4H Bank of Hawaii Corporation 1Q credit update
Slide 17: Credit quality
credit quality 17 * 72% of total criticized in CRE with 58% wtd avg LTV
Slide 18: 1Q22 production quality
1Q22 - production quality 18 commercial consumer
Slide 19: Reserve trend
reserve trend 19 $ in millions allowance for credit losses note: balances and coverage ratio based on allowance for credit losses – loans and leases
Slide 20: Q&A
4H Bank of Hawaii Corporation Q&A
Slide 21: Appendix
4H Bank of Hawaii Corporation appendix
Slide 22: Economic forecast
economic forecast source: UHERO 22
Slide 23: Strong risk-based capital
23 strong risk-based capital fortress capital position note: 1Q22 regulatory capital ratios are preliminary
Slide 24: Loan portfolio excluding PPP
loan portfolio excluding PPP 24 40% commercial 71% real estate secured wtd avg LTV 57% 57% w/ BOH ≥ 10 yrs avg balance $0.6MM CRE C&I residential mortgage home equity auto leasing other construction 60% consumer 85% real estate secured wtd avg LTV 55% 58% w/ BOH ≥ 10 yrs 79% of portfolio secured wit
Slide 25: Customer relief update
customer relief update 25 commercial consumer 98.9% of former deferrals are current 97.8% decline in deferrals since June 30, 2020 100% secured 51% wtd avg LTV 99.5% paying interest
Slide 26: High risk industries
high risk industries $1,381 million (11%) / $1,349 million (11%) excluding PPP 26
Slide 27: Retail
retail $698 million (6%) – excluding PPP 27 94% real estate secured 56% wtd avg LTV average exposure $3.7MM largest exposure $39MM 63% of portfolio has an LTV ≤ 65% 99% is secured or has essential anchor 0% unsecured and deferred 100% secured or paying interest
Slide 28: Lodging
lodging $514 million (4%) – excluding PPP 28 83% real estate secured 56% wtd avg LTV average exposure $9.6MM largest exposure $40MM 82% of portfolio has an LTV ≤ 65% 94% of unsecured outstandings to global hotel and timeshare brands 0% unsecured and deferred 100% secured or paying interest
Slide 29: Restaurant / entertainment
restaurant / entertainment $137 million (1%) – excluding PPP 29 52% real estate secured 67% wtd avg LTV average exposure $2.1MM largest exposure $29MM 31% of portfolio has an LTV ≤ 65% 0.1% unsecured and deferred 100% secured or paying interest