Bank Of Hawaii Corporation · NYSE:BOH
Bank Of Hawaii — Q2 2021 Earnings Presentation
33 slides from Bank Of Hawaii's earnings presentation, Jul 26, 2021
Slide 1: Second Quarter 2021 Financial Report
Bank of Hawaii Corporation second quarter 2021 financial report July 26, 2021 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: Improving Hawaii economic conditions
4H Bank of Hawaii Corporation improving Hawaii economic conditions well positioned
Slide 4: Unemployment experience & forecast
unemployment experience & forecast 4 source: UHERO, seasonally adjusted Hawaii unemployment rate
Slide 5: Hawaii real estate market
Hawaii real estate market Oahu market indicators – 2021 vs 2020 5 source: Honolulu Board of Realtors, compiled from MLS data
Slide 6: Daily arrivals total passenger count
daily arrivals total passenger count* 6 *source: Department of Business, Economic Development, and Tourism, excluding from Canada 7/8/21: testing and quarantine lifted for fully vaccinated U.S. travelers 10/15/20: launch of Safe Travels program
Slide 7: COVID-19 cases
COVID-19 cases 7 source: Washington Post as of 7/23/21
Slide 8: COVID-19 vaccinations
COVID-19 vaccinations 8 source: Washington Post as of 7/23/21 U.S. overall 48.8%
Slide 9: 2Q financial update
4H Bank of Hawaii Corporation 2Q financial update
Slide 10: Core customers continue to drive growth in balances
10 core customers continue to drive growth in balances growth from core customers $ in millions ample liquidity to fund additional growth: investments increased by $1 billion in highly liquid, low-risk portfolio and holding $910 million cash
Slide 11: Financial summary
financial summary $ in millions, except per share amounts 11 note: numbers may not add up due to rounding
Slide 12: Disciplined expenses
disciplined expenses $ in millions 12 core noninterest expense remains flat; other increases driven by restoration of incentives and higher volume restoration of incentives reduced in 2020 to support reserve provisioning for pandemic core expenses flat related to higher mortgage balances, value shar
Slide 13: Performance metrics
performance metrics 4 Bank of Hawa’ ~— Corporation | 2Q2021 102021 202020 4102021 A2Q2020 return on assets 123% 115% 082 % 0.08 % 0.41 % returnon common equity 19.60 17.65 11.58 1.95 8.02 net interest margin 237 2.43 2.83 (0.06) (0.46) efficiency ratio 5747 60.45 49.95, (2.98) 7.52 CET1 capital rati
Slide 14: Strong capital boosted by preferred stock issuance
14 strong capital boosted by preferred stock issuance in June and strong earnings position us well for future balance sheet growth stronger fortress capital positioned for further growth note: 2Q21 regulatory capital ratios are preliminary total deposit growth of $4.4 billion, or 19% annualized, sin
Slide 15: Return to buybacks and increased dividend
15 note: historical dividends adjusted for stock splits return to buybacks and increased dividend healthy earnings to support dividends and repurchases share buybacks plan to restart share repurchase program in July 2021 $113 million share buyback authority remaining dividends raising common equity
Slide 16: 2Q credit update
4H Bank of Hawaii Corporation 2Q credit update
Slide 17: Customer relief update
customer relief update 17 15.7% 2.7% 93% secured 91% paying interest commercial consumer 99.3% of former deferrals are current 88.2% decline in deferrals since June 30, 2020
Slide 18: Credit quality
credit quality $ in millions 18 * 56% of total criticized in CRE with 59% wtd avg LTV
Slide 19: Reserve trend
reserve trend $ in millions 19 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: Second Quarter 2021 Financial Report
Bank of Hawaii Corporation second quarter 2021 financial report July 26, 2021
Slide 22: Appendix
4H Bank of Hawaii Corporation appendix
Slide 23: Economic forecast
economic forecast source: UHERO Hawaii unemployment rate 23
Slide 24: Economic forecast
economic forecast source: UHERO 24
Slide 25: Growing low cost deposits
growing low cost deposits 25 continuing to build very low cost funding to mitigate impact of higher rates $ in millions
Slide 26: Funding opportunities
funding opportunities loan to deposit ratio compared with peers strong liquidity to fund continued growth 26 note: S&P Regional Banking Index excluding banks greater than $50bn
Slide 27: Loan portfolio excluding PPP
loan portfolio excluding PPP 27 40% commercial 70% real estate secured wtd avg LTV 56% 62% w/ BOH ≥ 10 yrs avg balance $0.6MM CRE C&I residential mortgage home equity auto leasing other construction 60% consumer 84% real estate secured wtd avg LTV 56% 57% w/ BOH ≥ 10 yrs 79% of portfolio secured wit
Slide 28: Consumer relief and secured loan detail
28 99% secured with 68% weighted average LTV as of 6/30/21 consumer relief $13 million (0.1%) 73% wtd avg CLTV 698 wtd avg FICO 29% <700 FICO / >70% CLTV 66% wtd avg LTV 731 wtd avg FICO 20% <700 FICO / >70% LTV *other consists of auto lease
Slide 29: Commercial relief and secured loan detail
29 93% secured with 46% weighted average LTV as of 6/30/21 97% continue to pay interest commercial relief $205 million (1.7%) $0.7MM secured with 61% wtd avg LTV $0.7MM avg loan 46% wtd avg LTV 79% ≤ 65% LTV $5.7MM avg loan
Slide 30: High risk industries
high risk industries $1,577 million (13%) / $1,379 million (11%) excluding PPP 30
Slide 31: Retail
retail $706 million (6%) – excluding PPP 31 94% real estate secured 55% wtd avg LTV average exposure $3.7MM largest exposure $39MM 64% of portfolio has an LTV ≤ 65% 98.8% is secured or has essential anchor 0.0% unsecured and deferred 100% secured or paying interest
Slide 32: Lodging
lodging $521 million (4%) – excluding PPP 32 81% real estate secured 52% wtd avg LTV average exposure $9.5MM largest exposure $40MM 81% of portfolio has an LTV ≤ 65% 92% of unsecured outstandings to global hotel and timeshare brands 0.1% unsecured and deferred 100% secured or paying interest
Slide 33: Restaurant / entertainment
restaurant / entertainment $152 million (1%) – excluding PPP 33 41% real estate secured 66% wtd avg LTV average exposure $1.8MM largest exposure $28.1MM 38% of portfolio has an LTV ≤ 65% $4.7MM unsecured and deferred average exposure $0.5MM 100% secured or paying interest