<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended June 30, 1995
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from _______________
to _______________
Commission File Number 0-15508
HAWAII NATIONAL BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
HAWAII 99-0250218
(State of incorporation) (IRS Employer Identification No.)
45 NORTH KING STREET, HONOLULU, HAWAII 96817
(Address of principal executive offices) (Zip Code)
</TABLE>
(808) 528-7711
Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter periods that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
--- ---
The number of shares outstanding of each of the issuer's classes of common
stock, as of the latest date is:
Common Stock, $1 Par Value; outstanding at June 30, 1995 - 711,000 shares
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TABLE OF CONTENTS
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<CAPTION>
Page
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets - June 30, 1995,
December 31, 1994 and June 30, 1994 (Unaudited) . . . . . . . . . . .. . . . 3
Consolidated Statements of Income - Three and six months
ended June 30, 1995 and 1994 (Unaudited) . . . . . . . . . . . . . . .. . . . 4
Consolidated Statements of Cash Flows - Six months
ended June 30, 1995 and 1994 (Unaudited) . . . . . . . . . . . . . . .. . . . 5
Notes to Consolidated Financial Statements (Unaudited) . . . . . . . . .. . . . 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . .. . . . 7
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . .. . . . 13
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 13
</TABLE>
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<PAGE> 3
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
HAWAII NATIONAL BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
June 30, 1995, December 31, 1994 and June 30, 1994
(dollars in thousands, except per share data)
<TABLE>
<CAPTION>
June 30 December 31 June 30
1995 1994 1994
-------- ----------- --------
<S> <C> <C> <C>
ASSETS:
Cash and due from banks $ 21,875 $ 19,610 $ 19,722
Federal funds sold 4,750 1,000 6,500
Investment securities
Held-to-maturity (fair value of $44,895,
$43,892 and $43,359, respectively) 44,934 44,930 44,001
Available-for-sale 1,497 1,489 1,489
Loans and leases 213,178 217,414 213,694
Less allowance for possible loan
and lease losses (note 2) 3,562 3,421 3,257
-------- -------- --------
209,616 213,993 210,437
Premises and equipment 4,278 3,929 4,059
Other assets 5,002 5,305 4,166
-------- -------- --------
Total assets $291,952 $290,256 $290,374
======== ======== ========
LIABILITIES:
Deposits -
Demand $ 91,374 $ 91,331 $ 95,308
Savings 112,181 117,447 118,118
Time 59,158 52,195 48,549
-------- -------- --------
Total deposits 262,713 260,973 261,975
Federal funds purchased -- 480 300
Short-term borrowings 1,000 1,000 1,000
Other liabilities 1,592 1,560 1,357
-------- -------- --------
Total liabilities 265,305 264,013 264,632
SHAREHOLDERS' EQUITY (NOTE 3):
Common stock, par value $1 per share;
Authorized - 10,000,000 shares
Issued and outstanding - 711,000 shares 711 711 711
Capital in excess of par value 12,136 12,135 12,136
Retained earnings 13,800 13,397 12,895
-------- -------- --------
Total shareholders' equity 26,647 26,243 25,742
-------- -------- --------
Total liabilities and shareholders' equity $291,952 $290,256 $290,374
======== ======== ========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
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<PAGE> 4
HAWAII NATIONAL BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the three and six months ended June 30, 1995 and 1994
(in thousands, except per share data)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30 June 30
------------------ -----------------
1995 1994 1995 1994
------- ------- ------- -------
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $5,064 $4,297 $9,914 $8,422
Interest on direct financing leases 32 34 63 70
Interest on Federal funds sold 125 105 177 266
Interest on investment securities-
Taxable 564 524 1,111 1,035
Exempt from Federal income tax 19 19 38 38
------ ------ ------ ------
Total interest income 5,804 4,979 11,303 9,831
------ ------ ------ ------
INTEREST EXPENSE:
Deposits 1,734 1,221 3,307 2,442
Federal funds purchased 9 4 23 9
Short-term borrowings 74 8 109 14
------ ------ ------ ------
Total interest expense 1,817 1,233 3,439 2,465
------ ------ ------ ------
Net interest income 3,987 3,746 7,864 7,366
PROVISION FOR LOAN AND LEASE LOSSES (NOTE 2) 150 135 300 270
------ ------ ------ ------
Net interest income after provision
for loan and lease losses 3,837 3,611 7,564 7,096
------ ------ ------ ------
OTHER INCOME:
Service charges on deposit accounts 264 173 523 447
Other service charges, collection and
exchange charges, commissions and fees 454 504 927 878
------ ------ ------ ------
718 677 1,450 1,325
------ ------ ------ ------
OTHER EXPENSES:
Salaries and employee benefits 2,000 1,842 3,966 3,629
Occupancy expense of bank premises 1,021 972 2,055 1,924
Other operating expenses 1,119 1,150 2,181 2,283
------ ------ ------ ------
4,140 3,964 8,202 7,836
------ ------ ------ ------
Income before income taxes 415 324 812 585
INCOME TAX PROVISION 155 120 302 215
------ ------ ------ ------
NET INCOME $ 260 $ 204 $ 510 $ 370
====== ====== ====== ======
PER SHARE DATA:
Net income $0.37 $0.29 $0.72 $0.52
Cash dividend $0.00 $0.00 $0.15 $0.15
Average shares outstanding 711,000 711,000 711,000 711,000
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
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<PAGE> 5
HAWAII NATIONAL BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the six months ended June 30, 1995 and 1994
(in thousands)
Increase (Decrease) In Cash and Cash Equivalents
<TABLE>
<CAPTION>
Six Months Ended June 30
------------------------
1995 1994
-------- --------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest and fees received $ 11,086 $ 9,739
Interest paid (3,334) (2,049)
Service charges, collection and exchange charges,
commission and fees received 1,450 1,326
Cash paid to suppliers and employees (8,086) (7,645)
Income taxes paid (343) (228)
-------- --------
Net cash provided by operating activities 773 1,143
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturity of investment securities held-to-maturity 10,110 9,009
Purchase of investment securities held-to-maturity (10,113) (8,993)
Purchase of investment securities available-for-sale (8) (1,069)
Net decrease in loans and leases made to customers 4,224 43
Capital expenditures (278) (58)
Proceeds from sale of equipment 153 --
Proceeds from sale of other real estate owned -- 10
-------- --------
Net cash provided by (used in) investing activities 4,088 (1,058)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net decrease in demand deposits and savings accounts (5,222) (14,765)
Net increase (decrease) in time deposits 6,962 (1,429)
Proceeds from short-term borrowings 4,000 --
Repayment of short-term borrowings (4,000) --
Net decrease in federal funds purchased (480) (140)
Dividends paid (106) (106)
-------- --------
Net cash provided by (used in) financing activities 1,154 (16,440)
-------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 6,015 (16,355)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 20,610 42,577
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 26,625 $ 26,222
======== ========
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY
OPERATING ACTIVITIES:
Net Income $ 510 $ 370
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation on bank premises and equipment 236 199
Provision for loan and lease losses 300 270
Amortization of deferred loan fees (147) (207)
Changes in -
Interest receivable (70) 115
Interest payable 105 416
Taxes payable (41) (13)
Other assets (88) 360
Other liabilities (32) (367)
-------- --------
Net cash provided by operating activities $ 773 $ 1,143
======== ========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
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<PAGE> 6
HAWAII NATIONAL BANCSHARES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of managment, adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the six months ended June 30, 1995, are
not necessarily indicative of the results anticipated for the year ending
December 31, 1995. For additional information, refer to the consolidated
financial statements and footnotes thereto included in Hawaii National
Bancshares, Inc.'s annual report on Form 10-K for the year ended December 31,
1994.
2. ALLOWANCE FOR POSSIBLE LOAN AND LEASE LOSSES
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<CAPTION>
Three Months Ended June 30 Six Months Ended June 30
-------------------------- ------------------------
(in thousands) 1995 1994 1995 1994
-------------- ------ ------ ------ ------
<S> <C> <C> <C> <C>
Balance, beginning of period $3,453 $3,249 $3,421 $3,129
Provision charged to operations 150 135 300 270
Loans and leases charged-off (49) (132) (176) (153)
Recoveries on loans and leases
previously charged-off 8 5 17 11
------ ------ ------ ------
Net charge-offs (41) (127) (159) (142)
------ ------ ------ ------
Balance, end of period $3,562 $3,257 $3,562 $3,257
====== ====== ====== ======
</TABLE>
3. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
Three Months Ended June 30 Six Months Ended June 30
-------------------------- ------------------------
(in thousands) 1995 1994 1995 1994
-------------- ------- ------- ------- -------
<S> <C> <C> <C> <C>
Balance, beginning of period $26,387 $25,538 $26,243 $25,478
Net income 260 204 510 370
Cash dividends -- -- (106) (106)
------- ------- ------- -------
Balance, end of period $26,647 $25,742 $26,647 $25,742
======= ======= ======= =======
</TABLE>
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<PAGE> 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
BACKGROUND
Hawaii National Bancshares, Inc. ("Company") is a bank holding company
whose wholly-owned subsidiary is Hawaii National Bank ("HNB" or the "Bank"), a
national banking association. The Company derives substantially all of its
consolidated revenues from the operations of the Bank and the Bank's assets
constitute the majority of the Company's assets. Therefore, the discussion
that follows relates mainly to the activities of the Bank.
HIGHLIGHTS
The Company reported net income of $260,000, or $0.37 per share, for
the three months ended June 30, 1995, an increase of $56,000 or 27.5% over the
comparable period in 1994. The improvement in earnings was attributable to an
increase in net interest income and other income from operations, partly offset
by an increase in other expenses. Year-to-date earnings were $510,000, or
$0.72 per share, an increase of $140,000 or 37.8% over the $370,000 reported
for the same period a year ago.
At June 30, 1995, total assets stood at $291,952,000, a modest
increase from $290,256,000 at December 31, 1994. Noncurrent loans and leases,
as a percentage of total loans and leases outstanding, declined from 1.6% at
December 31, 1994 to 1.4% at June 30, 1995. Shareholders' equity grew to
$26,647,000 at June 30, 1995, representing a 1.5% increase from year-end 1994.
Book value per share rose from $36.91 at December 31, 1994 to $37.48 at June
30, 1995. Leverage and risk-based capital ratios continued to exceed
regulatory requirements by a substantial margin.
On May 19, 1995, the Bank entered into a purchase and assumption
agreement with the Federal Deposit Insurance Corporation ("FDIC") who was named
Receiver for the former Bank USA, N.A., Maui, after it was closed by the Office
of the Comptroller of the Currency ("OCC"). Under the terms of the agreement,
HNB acquired certain assets of approximately $4,000,000 and assumed insured
deposits of approximately $8,000,000. The transaction was effective on May 22,
1995, when the two branches of the former Bank USA in Wailuku and Kihei opened
as branches of HNB. On July 14, 1995, the Bank applied to the OCC to relocate
the Wailuku branch to Kahului, a rapidly growing and more densely populated
community. Subject to regulatory approval, the move to the new location is
scheduled to take place in the third quarter of 1995.
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<PAGE> 8
On July 6, 1995, the Federal Reserve Open Market Committee reduced its
target for the federal funds rate by a quarter of a percentage point, marking
the first decline in nearly three years. The federal funds rate, which affects
commercial and consumer rates, is the rate that banks charge each other for the
use of overnight funds. While unknown at this time, there is speculation that
short-term interest rates could be lowered this year depending upon the state
of the economy. The Bank has an asset-sensitive balance sheet which generally
means that more interest-earning assets could reprice than interest-bearing
liabilities. Generally, a decline in interest rates will adversely affect net
interest income as asset yields decrease at a faster rate than funding costs.
On August 8, 1995, the FDIC adopted a rule that will reduce premiums
that banks pay for deposit insurance from the current range of $0.23 to $0.31
per $100 of insured deposits to a new range of $0.04 to $0.31. The actual rate
paid by each bank will continue to depend on how much risk it poses to the Bank
Insurance Fund ("BIF"). The Bank' earnings are expected to benefit
significantly from the reduction in insurance premiums. Assuming HNB remains
in the same risk category, the annual pre-tax savings to the Bank would be
approximately $490,000 based upon a deposit base of $260,000,000. The new rates
will take effect the first day of the month following the date that the BIF's
mandated reserve ratio of 1.25% is reached. While this target may have been
achieved in April or May of this year, the FDIC says that it will need until
September 1995 to verify this fact. Included in the new rule is a mechanism
for refunding to banks any excess premiums that were paid this year after the
BIF had achieved its 1.25% ratio.
RESULTS OF OPERATIONS
Net Interest Income
Net interest income for the three and six months ended June 30, 1995
increased $241,000 or 6.4% and $498,000 or 6.8%, respectively, over the
comparable periods in 1994. The growth in net interest income was attributable
to an improvement in net interest margin. Net interest margin for the second
quarter of 1995 was 5.90%, which compares favorably with 5.52% for the second
quarter of last year. For the year-to-date, net interest margin was 5.92%, an
increase from the 5.43% reported for the same period in 1994.
Interest income for the three and six months ended June 30, 1995
increased $825,000 or 16.6% and $1,472,000 or 15.0%, respectively, compared to
the same periods in the prior year. The increase was primarily due to higher
yields. The average yield on interest-earning assets rose to 8.59% in the
quarter from 7.34% in the year-earlier period. The average yield for the
year-to-date was 8.50%, an increase from the 7.25% reported for the same period
in 1994.
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<PAGE> 9
Interest expense for the three and six months ended June 30, 1995
increased $584,000 or 47.4% and $974,000 or 39.5%, respectively, versus the
same periods a year earlier. The increase was primarily due to a higher
average cost of deposits. The average rate paid on deposits increased to 3.46%
in the quarter from 2.41% in the second quarter of 1994. For the year-to-date,
the average rate paid on deposits was 3.33%, up from 2.38% for the first half
of 1994.
Other Income and Expenses
Other income for the three and six months ended June 30, 1995 rose
$41,000 or 6.1% and $125,000 or 9.4%, respectively, compared to the same
periods in the prior year. The improved results were primarily due to
increased revenue from deposit accounts.
Other expenses consist of salaries and employee benefits, occupancy
expenses and other operating expenses. For the three and six months ended June
30, 1995, other expenses increased $176,000 or 4.4% and $366,000 or 4.7%,
respectively, compared to the same period last year.
Salaries and employee benefits for the three and six months ended June
30, 1995 increased $158,000 or 8.6% and $337,000 or 9.3%, respectively, over
the same periods a year earlier. The growth in this category reflected an
increase in staff and normal merit and inflationary adjustments.
Occupancy expenses for the three and six months ended June 30, 1995
rose $49,000 or 5.0% and $131,000 or 6.8%, respectively, from the comparable
periods in 1994. The increase was attributable to adjustments in lease rents
for Bank premises and higher insurance premiums and depreciation charges.
Other operating expenses for the three and six months ended June 30,
1995 declined $31,000 or 2.7% and $102,000 or 4.5%, compared to same periods a
year ago. The improvement was primarily due to a reduction in data processing
fees from Computer Systems International, Ltd., a company formed to provide
computer services to financial institutions including the Bank. An affiliate
of a director and the Bank each own a 50% interest in this bank service
corporation.
Income Taxes
The Company's effective income tax rate for the three and six months
ended June 30, 1995 was 37.4% and 37.2%, respectively, compared to 37.0% and
36.8% for the same periods last year.
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<PAGE> 10
FINANCIAL CONDITION
Deposits
HNB's deposits totaled $262,713,000 at June 30, 1995; $260,973,000 at
December 31, 1994; and $261,975,000 at June 30, 1994. In May 1995, the Bank
assumed approximately $8,000,000 in insured deposits from the FDIC who was
named Receiver for the former Bank USA, N.A., Maui. The following month the
Bank experienced a net decrease in deposits due to escrow closings and
settlements.
Investment Securities
Investment securities consist principally of short and intermediate
term debt instruments issued by the U.S. Treasury, other U.S. government
agencies and State and local government units. The Bank is also a stockholder
in the Federal Home Loan Bank of Seattle ("FHLB") and the Federal Reserve Bank.
The Bank has no derivative securities, such as structured notes, collateralized
mortgage obligations or stripped mortgage-backed securities.
The book and fair value of the held-to-maturity portfolio at June
30, 1995 was $44,934,000 and $44,895,000, respectively. As of the same date,
the book and fair value of the available-for-sale portfolio was $1,497,000.
The Bank had no trading securities at quarter-end. During the first half of
1995, there were no sales or transfers of investment securities between the
held-to-maturity, available-for-sale or trading categories.
Loan Portfolio and Loan Concentrations
At June 30, 1995, loans and leases were $213,178,000, a decline of
$4,236,000 or 1.9% from year-end 1994 and $516,000 or 0.2% below the level
reported at June 30, 1994. During the quarter, the Bank sold a pool of
commercial mortgage loans aggregating $4,400,000 to an investor. The Bank has
no significant concentrations of credit with any individual party; however, its
lending is concentrated on the island of Oahu. At June 30, 1995, real estate
loans totaled $139,879,000, representing 65.6% of total loans and leases
outstanding. Of this amount, $108,975,000 or 77.9% of the Bank's real estate
loans, were secured by mortgages on one-to-four family residential properties
in Hawaii.
Noncurrent Loans and Leases and Other Real Estate Owned
Total noncurrent loans and leases decreased to $2,919,000 at June 30,
1995, representing 1.4% of loans and leases outstanding, compared to $3,567,000
or 1.6% at December 31, 1994, and $2,580,000 or 1.2% at June 30, 1994.
Included in the noncurrent category are loans and leases past due for 90 days
or more and still accruing interest and loans and leases on nonaccrual status.
There were no restructured loans outstanding at June 30, 1995, December 31,
1994 or June 30, 1994. At June 30, 1995, other real estate owned ("OREO")
totaled $938,000 and
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<PAGE> 11
consisted of two properties. One of the properties has been sold for $150,000
under an agreement of sale which matures in January 1996.
The following table presents information related to noncurrent loans
and OREO for the dates indicated:
<TABLE>
<CAPTION>
June 30 December 31 June 30
1995 1994 1994
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Loans and Leases Past Due 90 Days or More $ 337,000 $2,241,000 $1,694,000
Nonaccrual Loans and Leases 2,582,000 1,326,000 886,000
---------- ---------- ----------
Total Noncurrent Loans and Leases $2,919,000 $3,567,000 $2,580,000
Other Real Estate Owned $938,000 $938,000 $939,000
-----------------------------------------------------------------------------------------------
</TABLE>
Provision and Allowance for Loan and Lease Losses
During the three and six months ended June 30, 1995, the Bank provided
$150,000 and $300,000, respectively, for possible loan and lease losses,
compared to $135,000 and $270,000 for the three and six months ended June 30,
1994.
Net charge-offs for the quarter and year-to-date were $41,000 and
$159,000, respectively, compared to $127,000 and $142,000 for the same periods
in 1994. The majority of the charge-offs this year have been in the consumer
loan category. This trend is expected to continue through 1995 as the local
economy remains weak. On an annualized basis, net charge-offs as a percentage
of average loans and leases was 0.08% for the quarter and 0.15% for the
year-to-date. For the comparable periods in 1994, the ratio was 0.24% and
0.13%, respectively.
At June 30, 1995, the allowance for loan and lease losses stood at
$3,562,000, compared to $3,421,000 at December 31, 1994 and $3,257,000 at June
30, 1994. The ratio of the allowance to total loans and leases outstanding was
1.7%, 1.6% and 1.5% at June 30, 1995, December 31, 1994 and June 30, 1994,
respectively.
Liquidity
The Bank has adequate liquidity to accommodate fluctuations in deposit
levels, support operations, provide for customer credit needs, and meet
obligations and commitments on a timely basis. Additional liquidity is
available to the Bank through federal funds lines at other banks. The Bank
also has line of credit with the FHLB which permits it to borrow up to 10% of
its total assets. Included in this facility is a cash management agreement
line of 5%. At June 30, 1995, there were no advances from the Federal Home
Loan Bank or federal funds purchased outstanding.
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<PAGE> 12
Operating activities provided net cash of $773,000 for the six months
ended June 30, 1995, compared to $1,143,000 for the same period last year.
Investing activities provided net cash of $4,088,000 and used net cash of
$1,058,000 for the first half of 1995 and 1994, respectively. Financing
activities provided net cash of $1,154,000 for the year-to-date and used net
cash of $16,440,000 for the comparable period in 1994. During the first half
of 1994, the rates paid on bank deposits were relatively low. As a result,
there was a general migration in funds away from bank deposits into other
investment alternatives.
Capital
Shareholders' equity totaled $26,647,000 at June 30, 1995, an increase
of $404,000 or 1.5% from December 31, 1994 and $905,000 or 3.5% from June 30,
1994. The growth in equity was achieved through retention of earnings after
payment of cash dividends of $106,650 in the first quarter of 1995. Book value
per share increased to $37.48 at June 30, 1995, compared to $36.91 and $36.21
at December 31, 1994 and June 30, 1994, respectively.
The Company's leverage capital ratio was 9.15% at June 30, 1995; 9.12%
at December 31, 1994; and 8.76% at June 30, 1994. The minimum regulatory
requirement is 3.0%.
The Company's risk-based capital ratios far exceeded regulatory
requirements. The rules require a minimum tier 1 capital ratio of 4.0% of
risk-weighted assets and a minimum total capital ratio of 8.0% of risk-weighted
assets. The Company's tier 1 and total capital ratios were 12.78% and 14.04%,
respectively, at June 30, 1995, compared to 12.33% and 13.59% at December 31,
1994; and 12.19% and 13.44% at June 30, 1994.
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<PAGE> 13
PART II. OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27 Financial Data Schedule
(b) Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
HAWAII NATIONAL BANCSHARES, INC.
(Registrant)
Date August 14, 1995 By /s/ Warren K.K. Luke
------------------------- ---------------------------------
Warren K.K. Luke
President
Date August 14, 1995 By /s/ Ernest T. Murata
------------------------- ---------------------------------
Ernest T. Murata
Vice President, Treasurer,
Assistant Secretary and
Chief Financial Officer
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<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 21,875
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 4,750
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 1,497
<INVESTMENTS-CARRYING> 44,934
<INVESTMENTS-MARKET> 44,895
<LOANS> 213,178
<ALLOWANCE> 3,562
<TOTAL-ASSETS> 291,952
<DEPOSITS> 262,713
<SHORT-TERM> 1,000
<LIABILITIES-OTHER> 1,592
<LONG-TERM> 0
<COMMON> 711
0
0
<OTHER-SE> 25,936
<TOTAL-LIABILITIES-AND-EQUITY> 291,952
<INTEREST-LOAN> 9,914
<INTEREST-INVEST> 1,149
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 11,303
<INTEREST-DEPOSIT> 3,307
<INTEREST-EXPENSE> 3,439
<INTEREST-INCOME-NET> 7,864
<LOAN-LOSSES> 300
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 8,202
<INCOME-PRETAX> 812
<INCOME-PRE-EXTRAORDINARY> 510
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 510
<EPS-PRIMARY> 0.72
<EPS-DILUTED> 0.72
<YIELD-ACTUAL> 5.92
<LOANS-NON> 2,582
<LOANS-PAST> 337
<LOANS-TROUBLED> 0
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<ALLOWANCE-OPEN> 3,421
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<ALLOWANCE-CLOSE> 3,562
<ALLOWANCE-DOMESTIC> 3,562
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 2,062
</TABLE>
