Bank Of Hawaii Corporation · NYSE:BOH
Bank Of Hawaii — Q2 2022 Earnings Presentation
30 slides from Bank Of Hawaii's earnings presentation, Aug 15, 2022
Slide 1: Bank of Hawaii Corporation Second Quarter 2022 Financial Report
Bank of Hawaii Corporation second quarter 2022 financial report August 15, 2022 Update Exhibit 99.1
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: Strong real estate market
strong real estate market 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: Revenue per available room (RevPAR)
revenue per available room revenue per available room (RevPAR)* 6 *source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT)
Slide 7: 2Q financial update
4H Bank of Hawaii Corporation 2Q financial update
Slide 8: Balanced core loan growth
balanced core loan growth $ in millions 8 $7,879 $1,970 $3,070 $32 $12,952 2016 - 2021 CAGR: 6.0% note: numbers may not add up due to rounding, CAGR and annual growth rate exclude PPP 2016 - 2021 CAGR: 6.5% annual growth rate annual growth rate
Slide 9: Low cost, long duration deposits
low cost, long duration deposits $ in billions 9 2016 - 2021 CAGR: 7.3% source: S&P Capital IQ, S&P Regional Banking Index excluding banks greater than $50bn as of 1/4/22
Slide 10: Sustainable NII growth
sustainable NII growth $ in millions 10 note: core NII excludes PPP and significant items; numbers may not add up due to rounding $5.3 Outlook: 10 – 11 bps NIM increase in Q3
Slide 11: Ample liquidity
ample liquidity loan to deposit ratio compared with peers strong liquidity to fund continued growth 11 note: S&P Regional Banking Index excluding banks greater than $50bn as of 1/4/22, weighted average peers by total assets as of 1Q22 local peer bank average contains BOH, FHB, CPB, ASB, and TBNK; da
Slide 12: Asset sensitive
12 asset sensitive note: numbers may not add up due to rounding
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 modest increase in core expenses and steady investment in innovation note: numbers may not add up due to rounding Outlook: Reiterated 2022 NIE of $415MM, with Q3 higher than Q4 due to payroll seasonality
Slide 15: Performance metrics
performance metrics 15 note: 2Q22 regulatory capital ratios are preliminary
Slide 16: Strong risk-based capital
16 strong risk-based capital fortress capital position note: 2Q22 regulatory capital ratios are preliminary; KBW Regional Banking Index (KRX) as of 1/4/22
Slide 17: 2Q credit update
4H Bank of Hawaii Corporation 2Q credit update
Slide 18: Loan portfolio excluding PPP
loan portfolio excluding PPP 18 40% commercial 72% 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 consumer construction 60% consumer 85% real estate secured wtd avg LTV 55% 58% w/ BOH ≥ 10 yrs 80% of portfolio se
Slide 19: Credit quality
credit quality 19 * 73% of total criticized in CRE with 61% wtd avg LTV
Slide 20: 2Q22 production quality
2Q22 - production quality 20 commercial consumer
Slide 21: Reserve trend
reserve trend 21 $ in millions allowance for credit losses note: balances and coverage ratio based on allowance for credit losses – loans and leases
Slide 22: Other highlights
4H Bank of Hawaii Corporation other highlights
Slide 23: Superior returns
23 superior returns Financial Crisis COVID-19 BOH ranked in Top 5 for last 18 years market leading brand robust and sustainable growth focused execution strong asset quality, liquidity, and capital source: S&P Capital IQ, KBW Regional Banking Index (KRX) as of 1/4/22
Slide 24: Q&A
4H Bank of Hawaii Corporation Q&A
Slide 25: Appendix
4H Bank of Hawaii Corporation appendix
Slide 26: Customer relief update
customer relief update 26 commercial consumer 99.0% of former deferrals are current 98.2% decline in deferrals since June 30, 2020 100% secured 49% wtd avg LTV 100% paying interest
Slide 27: High risk industries
high risk industries $1,461 million (11%) / $1,440 million (11%) excluding PPP 27
Slide 28: Retail
retail $714 million (6%) – excluding PPP 28 94% real estate secured 56% wtd avg LTV average exposure $3.6MM largest exposure $38MM 64% of portfolio has an LTV ≤ 65% 99% is secured or has essential anchor 0% deferred
Slide 29: Lodging
lodging $577 million (4%) – excluding PPP 29 87% real estate secured 56% wtd avg LTV average exposure $11.1MM largest exposure $57MM 84% of portfolio has an LTV ≤ 65% 94% of unsecured outstandings to global hotel and timeshare brands 100% of deferred is secured and paying interest
Slide 30: Restaurant / entertainment
restaurant / entertainment $149 million (1%) – excluding PPP 30 59% real estate secured 69% wtd avg LTV average exposure $2.6MM largest exposure $28MM 24% of portfolio has an LTV ≤ 65% 0% deferred