Bank Of Hawaii Corporation · NYSE:BOH
Bank Of Hawaii — Q1 2021 Earnings Presentation
38 slides from Bank Of Hawaii's earnings presentation, Apr 26, 2021
Slide 1: Bank of Hawaii Corporation first quarter 2021 financial report
Bank of Hawaii Corporation first quarter 2021 financial report April 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: Improved Hawaii economic outlook
4H Bank of Hawaii Corporation improved Hawaii economic outlook well positioned
Slide 4: Unemployment experience & forecast
unemployment experience & forecast 4 source: UHERO Hawaii unemployment rate
Slide 5: Economic forecast
economic forecast source: UHERO Hawaii unemployment rate 5
Slide 6: Economic forecast
economic forecast source: UHERO 6
Slide 7: Hawaii real estate market
Hawaii real estate market Oahu market indicators – 2021 vs 2020 7 source: Honolulu Board of Realtors, compiled from MLS data
Slide 8: Daily arrivals total passenger count
daily arrivals total passenger count* 8 *source: Department of Business, Economic Development, and Tourism, excluding from Canada 10/15: launch of Safe Travels program
Slide 9: COVID-19 cases
COVID-19 cases 9 source: Washington Post as of 4/22/21
Slide 10: COVID-19 vaccinations
COVID-19 vaccinations 10 source: Washington Post as of 4/22/21, percents are calculated for population age 16 and older U.S. overall 26.9%
Slide 11: Q1 financial update
4H Bank of Hawaii Corporation Q1 financial update
Slide 12: 1Q deposit growth
12 $1.3 B of growth primarily driven by core customers 1Q deposit growth $ in millions
Slide 13: Growing low cost deposits
growing low cost deposits 13 continuing to build very low cost funding to mitigate impact of higher rates $ in millions
Slide 14: Strong liquidity
strong liquidity $ in millions 14 deposit growth conservatively allocated into balanced mix of asset classes large increase in cash supports liquidity, provides funding for loan and investment growth, and can be deployed to support NII and NIM
Slide 15: Financial summary
financial summary $ in millions, except per share amounts 15 note: numbers may not add up due to rounding
Slide 16: Controlled expenses
controlled expenses $ in millions 16 2019 – 2021 CAGR of expenses of 1.1% adjusting for extraordinary items incentive compensation reduced in 2020 to support reserve provisioning and restored to normal levels for 2021 1Q 2020 extraordinary items include $4.7 million of separation expense 1Q 2021 ext
Slide 17: Performance metrics
performance metrics 1@ 2021 return on assets 1.15 return on equity 17.65 net interest margin 2.43 efficiency ratio 60.45 CET1/tier 1 capitalratio 12.35 tier 4 leverage ratio 6.61 % % 4Q 2020 0.83 12.26 2.48 59.88 12.06 on % % 1Q 2020 O77 % 10.64 2.96 55.96 11.81 % 7.42 4H Bank of Hawai Corporation 4
Slide 18: Strong risk-based capital
18 strong risk-based capital, well in excess of required minimums tier 1 capital CET 1 total capital fortress capital position 10.0% 10.0%
Slide 19: 1Q credit update
4H Bank of Hawaii Corporation 1Q credit update
Slide 20: Loan portfolio excluding PPP
loan portfolio excluding PPP 20 40% commercial 70% real estate secured wtd avg LTV 56% 63% w/ BOH ≥ 10 yrs avg balance $0.5 MM CRE C&I residential mortgage home equity auto leasing other construction 60% consumer 84% real estate secured wtd avg LTV 56% 56% w/ BOH ≥ 10 yrs 78% of portfolio secured wi
Slide 21: Customer relief update
customer relief update 85% decline from June 30, 2020 21 15.7% 13.0% 4.1% 2.7% 92% secured
Slide 22: Credit quality
credit quality $ in millions 22 * 56% of total criticized in CRE with 58% wtd avg LTV
Slide 23: Reserve trend
reserve trend $ in millions 23 allowance for credit losses
Slide 24: Other highlights
4H Bank of Hawaii Corporation other highlights
Slide 25: Furthering our digital future
furthering our digital future 25 Digital One investment new digital options and services highly intuitive and functionally rich experiences low-code implementation to accelerate speed to market highly scalable and configurable platform that will grow with the bank’s need over time SimpliFi by Bank o
Slide 26: Supporting our customers
supporting our customers 26 contactless cards live chat
Slide 27: Commitment to future growth
commitment to future growth 27 2,022 FTE annual innovation expense digital environment digital marketing data analytics customer experience IT capacity build operational efficiency annual innovation expense plus other IT project annual expense annual innovation expense $ in millions
Slide 28: Q&A
4H Bank of Hawaii Corporation Q&A
Slide 29: Bank of Hawaii Corporation first quarter 2021 financial report
Bank of Hawaii Corporation first quarter 2021 financial report April 26, 2021
Slide 30: Appendix
4H Bank of Hawaii Corporation appendix
Slide 31: Funding opportunities: loan to deposit ratio vs peers
funding opportunities loan to deposit ratio compared with peers note: S&P Regional Bank Index excluding banks greater than $50B strong liquidity to fund continued growth 31
Slide 32: Unbroken history of dividends
32 note: historical dividends adjusted for stock splits. Financial Crisis recession recession COVID-19 unbroken history of dividends
Slide 33: Consumer relief
33 92% secured with 63% weighted average LTV as of 3/31/21 consumer relief $51 million (0.4%) 680 wtd avg FICO 28% wtd avg DTI 62% wtd avg CLTV 714 wtd avg FICO 17% <700 FICO / >70% CLTV 63% wtd avg LTV 764 wtd avg FICO 7% <700 FICO / >70% LTV * indirect excludes recourse loans ($0.3MM) **other incl
Slide 34: Commercial relief
34 92% secured with 47% weighted average LTV as of 3/31/21 90% continue to pay interest commercial relief $271 million (2.2%) $1.7MM secured with 54% wtd avg LTV $0.5 MM avg loan 47% wtd avg LTV 81% ≤ 65% LTV $4.2MM avg loan
Slide 35: High risk industries
high risk industries $1,612 million (13%) / $1,368 million (11%) excluding PPP 35
Slide 36: Retail
retail $704 million (6%) – excluding PPP 36 93% real estate secured 56% wtd avg LTV average exposure $3.7 MM largest exposure $40 MM 64% of portfolio has an LTV ≤ 65% 97.8% is secured or has essential anchor 0.0% unsecured and deferred 100% secured or paying interest
Slide 37: Lodging
lodging $505 million (4%) – excluding PPP 37 79% real estate secured 51% wtd avg LTV average exposure $9.6 MM largest exposure $40 MM 80% of portfolio has an LTV ≤ 65% 92% of unsecured outstandings to global hotel and timeshare brands 0.1% unsecured and deferred 99.9% secured or paying interest
Slide 38: Restaurant / entertainment
restaurant / entertainment $159 million (1%) – excluding PPP 38 39% real estate secured 65% wtd avg LTV average exposure $1.7 MM largest exposure $27.9 MM 42% of portfolio has an LTV ≤ 65% $7.3 MM unsecured and deferred average exposure $0.4 MM 99.9% secured or paying interest