Bank Of Hawaii Corporation · NYSE:BOH
Bank Of Hawaii — Q3 2021 Earnings Presentation
33 slides from Bank Of Hawaii's earnings presentation, Oct 25, 2021
Slide 1: Bank of Hawaii Corporation third quarter 2021 financial report
Bank of Hawaii Corporation third quarter 2021 financial report October 25, 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: Bank of Hawaii Corporation
4H Bank of Hawaii Corporation stable revenue & growing balance sheet disciplined expense management fortress capital & liquidity strong credit statistics
Slide 4: Unemployment experience & forecast
unemployment experience & forecast source: UHERO, seasonally adjusted Hawaii unemployment rate 4
Slide 5: Economic forecast: Hawaii unemployment rate
economic forecast Hawaii unemployment rate 5 source: UHERO
Slide 6: Hawaii real estate market
Hawaii real estate market Oahu market indicators – 2021 vs 2020 6 source: Honolulu Board of Realtors, compiled from MLS data
Slide 7: Daily arrivals total passenger count
daily arrivals total passenger count* 7 *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 8/23/21: Gov. Ige releases statement urging visitors to
Slide 8: COVID-19 cases
COVID-19 cases 8 source: Washington Post as of 10/21/21
Slide 9: COVID-19 vaccinations
COVID-19 vaccinations 9 source: Hawaii State Department of Health as of 10/22/21 70.7% total population fully vaccinated 79.2% total population at least one dose administered 82.8% 12yr+ population fully vaccinated
Slide 10: 3Q financial update
4H Bank of Hawaii Corporation 3Q financial update
Slide 11: Core customers continue to drive growth in balances
11 core customers continue to drive growth in balances growth from core customers $ in millions note: numbers may not add up due to rounding
Slide 12: Ample liquidity continuing to build
12 ample liquidity continuing to build low cost, long duration deposits to fund future growth excess liquidity deployed into high-quality, low-risk investment portfolio
Slide 13: Positioned for higher rates
13 positioned for higher rates ample liquidity, cash flow and healthy variable loan mix position us well for higher rate environment note: S&P Regional Banking Index excluding banks greater than $50bn; 3Q numbers are preliminary
Slide 14: Financial summary
financial summary $ in millions, except per share amounts 14 note: numbers may not add up due to rounding
Slide 15: Disciplined expenses
disciplined expenses $ in millions 15 disciplined expense management amidst continued balance sheet growth *volume-related expense growth primarily related to higher mortgage production, broker charges and higher FDIC insurance for deposits. note: numbers may not add up due to rounding 2021 expenses
Slide 16: Performance metrics
performance metrics 4 Bank of Hawa’ ~— Corporation | 3Q2021 22021 3Q2020 42Q2021 A3Q 2020 return on assets 107% 123% 076% (0.16)% 0.31 % return on common equity 17.08 19.61 114.01 (2.53) 6.07 net interest margin 2.32 237 267 (0.05) (0.35) efficiency ratio 6738 STAT 54.22 (0.09) 3.16 CET1 capital rat
Slide 17: Strong risk-based capital
17 strong risk-based capital fortress capital position note: 3Q21 regulatory capital ratios are preliminary
Slide 18: 3Q credit update
4H Bank of Hawaii Corporation 3Q credit update
Slide 19: Customer relief update
customer relief update 19 100% secured 95% paying interest commercial consumer 99.2% of former deferrals are current 94.9% decline in deferrals since June 30, 2020
Slide 20: Credit quality
credit quality $ in millions 20 * 64% of total criticized in CRE with 60% wtd avg LTV
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: Q&A
4H Bank of Hawaii Corporation Q&A
Slide 23: Appendix
4H Bank of Hawaii Corporation appendix
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, long duration funding $ in millions
Slide 26: Unbroken history of dividends
26 note: historical dividends adjusted for stock splits unbroken history of dividends recession COVID-19
Slide 27: Loan portfolio excluding PPP
loan portfolio excluding PPP 27 40% commercial 70% real estate secured wtd avg LTV 56% 61% 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 78% of portfolio secured wit
Slide 28: Consumer relief
28 100% secured with 71% weighted average LTV as of 9/30/21 consumer relief $8 million (0.1%) 59% wtd avg CLTV 686 wtd avg FICO 23% <700 FICO / >70% CLTV 72% wtd avg LTV 721 wtd avg FICO 28% <700 FICO / >70% LTV note: zero remaining deferrals in indirect and other (direct installment loans and auto
Slide 29: Commercial relief
29 100% secured with 39% weighted average LTV as of 9/30/21 100% continue to pay interest commercial relief $130 million (1.1%) 39% wtd avg LTV 97% ≤ 65% LTV $5.4MM avg loan note: zero remaining deferrals in leasing or construction
Slide 30: High risk industries
high risk industries $1,489 million (12%) / $1,373 million (11%) excluding PPP 30
Slide 31: Retail
retail $695 million (6%) – excluding PPP 31 93% real estate secured 56% wtd avg LTV average exposure $3.5MM largest exposure $39MM 63% of portfolio has an LTV ≤ 65% 98.3% 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 82% real estate secured 52% wtd avg LTV average exposure $9.4MM largest exposure $40MM 81% of portfolio has an LTV ≤ 65% 90% 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 $157 million (1%) – excluding PPP 33 42% real estate secured 67% wtd avg LTV average exposure $1.9MM largest exposure $29MM 38% of portfolio has an LTV ≤ 65% 0.0% unsecured and deferred 100% secured or paying interest