Bank Of Hawaii Corporation · NYSE:BOH
Bank Of Hawaii — Q4 2021 Earnings Presentation
29 slides from Bank Of Hawaii's earnings presentation, Jan 24, 2022
Slide 1: Bank of Hawaii Corporation fourth quarter 2021 financial report
Bank of Hawaii Corporation fourth quarter 2021 financial report January 24, 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: Hawaii real estate market
Hawaii real estate market Oahu market indicators – 2021 vs 2020 4 source: Honolulu Board of Realtors, compiled from MLS data
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: 4Q financial update
4H Bank of Hawaii Corporation 4Q financial update
Slide 7: Core loan and NII growth
7 core loan and NII growth note: core loans excludes PPP balances. core NII excludes all fees and interest income generated by PPP and one-time items (including 4Q20 $3.0MM leveraged lease residual value impairment and 4Q21 $0.9MM deferred mortgage loan fee adjustment) strong core loan and steady NI
Slide 8: Strong core deposit base
strong core deposit base 8 strong low cost, long duration core deposit base helps to mitigate rising rates $ in millions
Slide 9: Positioned for higher rates
9 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
Slide 10: Financial summary
financial summary $ in millions, except per share amounts 10 note: numbers may not add up due to rounding
Slide 11: Disciplined expenses
disciplined expenses $ in millions 11 disciplined expense management note: numbers may not add up due to rounding 2019 normalized NIE excludes $5.3 million of one-time items; 2021 normalized NIE excludes $3.7 million of one-time items 2021 expenses up slightly from pre-pandemic 2019 with investments
Slide 12: Investing in the future
investing in the future $ in millions 12 note: numbers may not add up due to rounding 2021 normalized NIE excludes $3.7 million of one-time items 5.9% growth in 2022 expenses driven by strategic investments and adjustments for inflation
Slide 13: Performance metrics
performance metrics 13 note: 4Q21 regulatory capital ratios are preliminary
Slide 14: Strong risk-based capital
14 strong risk-based capital fortress capital position note: 4Q21 regulatory capital ratios are preliminary
Slide 15: 4Q credit update
4H Bank of Hawaii Corporation 4Q credit update
Slide 16: Credit quality
credit quality $ in millions 16 * 63% of total criticized in CRE with 61% wtd avg LTV
Slide 17: Reserve trend
reserve trend 17 $ in millions allowance for credit losses note: balances and coverage ratio based on allowance for credit losses – loans and leases
Slide 18: Customer relief update
customer relief update 18 100% secured 93% paying interest commercial consumer 99.1% of former deferrals are current 97.6% decline in deferrals since June 30, 2020
Slide 19: Q&A
4H Bank of Hawaii Corporation Q&A
Slide 20: Appendix
4H Bank of Hawaii Corporation appendix
Slide 21: Economic forecast
economic forecast source: UHERO 21
Slide 22: Unbroken history of dividends
22 note: historical dividends adjusted for stock splits unbroken history of dividends recession COVID-19
Slide 23: Loan portfolio excluding PPP
loan portfolio excluding PPP 23 40% commercial 70% real estate secured wtd avg LTV 57% 58% 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 55% 58% w/ BOH ≥ 10 yrs 78% of portfolio secured wit
Slide 24: Consumer relief
24 100% secured with 66% weighted average LTV as of 12/31/21 consumer relief $3 million (0.03%) 36% wtd avg CLTV 655 wtd avg FICO 0% <700 FICO / >70% CLTV 68% wtd avg LTV 725 wtd avg FICO 39% <700 FICO / >70% LTV note: zero remaining deferrals in indirect and other (direct installment loans and auto
Slide 25: Commercial relief
25 100% secured with 51% weighted average LTV as of 12/31/21 100% continue to pay interest commercial relief $40 million (0.3%) 51% wtd avg LTV 100% ≤ 65% LTV $4.5MM avg loan note: zero remaining deferrals in leasing or construction
Slide 26: High risk industries
high risk industries $1,397 million (11%) / $1,331 million (11%) excluding PPP 26
Slide 27: Retail
retail $697 million (6%) – excluding PPP 27 94% real estate secured 56% wtd avg LTV average exposure $3.6MM 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 $488 million (4%) – excluding PPP 28 82% real estate secured 56% wtd avg LTV average exposure $9.2MM largest exposure $40MM 80% of portfolio has an LTV ≤ 65% 93% of unsecured outstandings to global hotel and timeshare brands 0% unsecured and deferred 100% secured or paying interest
Slide 29: Restaurant / entertainment
restaurant / entertainment $146 million (1%) – excluding PPP 29 43% real estate secured 67% wtd avg LTV average exposure $2.0MM largest exposure $29MM 35% of portfolio has an LTV ≤ 65% 0.1% unsecured and deferred 100% secured or paying interest