<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 September 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)
HAWAII 99-0250218
(State of incorporation) (IRS Employer Identification No.)
45 NORTH KING STREET, HONOLULU, HAWAII 96817
(Address of principal executive offices) (Zip Code)
(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 September 30, 1995 - 711,000 shares
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TABLE OF CONTENTS
<TABLE>
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Page
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets - September 30, 1995,
December 31, 1994 and September 30, 1994 (Unaudited) ............ 3
Consolidated Statements of Income - Three and nine months
ended September 30, 1995 and 1994 (Unaudited) ................... 4
Consolidated Statements of Cash Flows - Nine months
ended September 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)
SEPTEMBER 30, 1995, DECEMBER 31, 1994 AND SEPTEMBER 30, 1994
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
SEPTEMBER 30 DECEMBER 31 SEPTEMBER 30
1995 1994 1994
------------ ----------- ------------
<S> <C> <C> <C>
ASSETS:
Cash and due from banks $ 19,952 $ 19,610 $ 19,756
Federal funds sold 5,000 1,000 7,500
Investment securities
Held-to-maturity (fair value of $44,937, 44,924 44,930 43,999
$43,892 and $43,341, respectively)
Available-for-sale 1,497 1,489 1,489
Loans and leases 214,388 217,414 214,041
Less allowance for possible loan
and lease losses (note 2) 3,628 3,421 3,401
-------- -------- --------
210,760 213,993 210,640
Premises and equipment 4,260 3,929 3,991
Other assets 5,071 5,305 4,351
-------- -------- --------
Total assets $291,464 $290,256 $291,726
======== ======== ========
LIABILITIES:
Deposits -
Demand $ 88,966 $91,331 $94,325
Savings 111,914 117,447 116,787
Time 61,071 52,195 50,596
-------- -------- --------
Total deposits 261,951 260,973 261,708
Federal funds purchased -- 480 715
Short-term borrowings 943 1,000 1,000
Other liabilities 1,689 1,560 2,354
-------- -------- --------
Total liabilities 264,583 264,013 265,777
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 12,148 12,136 12,136
Retained earnings 14,022 13,396 13,102
-------- -------- --------
Total shareholders' equity 26,881 26,243 25,949
-------- -------- --------
Total liabilities and shareholders' equity $291,464 $290,256 $291,726
======== ======== ========
</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 NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
------------------ -----------------
1995 1994 1995 1994
------ ------ ------- -------
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $4,888 $4,426 $14,802 $12,848
Interest on direct financing leases 29 31 92 101
Interest on Federal funds sold 162 124 340 390
Interest on investment securities-
Taxable 588 516 1,699 1,551
Exempt from Federal income tax 19 19 57 57
------- ------- ------- -------
Total interest income 5,686 5,116 16,990 14,947
------- ------- ------- -------
INTEREST EXPENSE:
Deposits 1,815 1,309 5,122 3,751
Federal funds purchased -- 8 23 17
Short-term borrowings 13 9 122 23
------- ------- ------- -------
Total interest expense 1,828 1,326 5,267 3,791
------- ------- ------- -------
Net interest income 3,858 3,790 11,723 11,156
PROVISION FOR LOAN AND LEASE LOSSES (note 2) 150 135 450 405
------- ------- ------- -------
Net interest income after provision for
loan and lease losses 3,708 3,655 11,273 10,751
------- ------- ------- -------
OTHER INCOME:
Service charges on deposit accounts 284 251 807 698
Other service charges, collection and
exchange charges, commissions and fees 450 463 1,377 1,341
Gain on investment securities available-for-sale 19 -- 19 --
------- ------- ------- -------
753 714 2,203 2,039
------- ------- ------- -------
OTHER EXPENSES:
Salaries and employee benefits 2,046 1,915 6,012 5,544
Occupancy expense of bank premises 1,067 1,000 3,123 2,924
Other operating expenses 995 1,126 3,176 3,409
------- ------- ------- -------
4,108 4,041 12,311 11,877
------- ------- ------- -------
Income before income taxes 353 328 1,165 913
INCOME TAX PROVISION 131 120 433 335
------- ------- ------- -------
NET INCOME $ 222 $ 208 $ 732 $ 578
======= ======= ======= =======
PER SHARE DATA:
Net income $0.31 $0.29 $1.03 $0.81
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 nine months ended September 30, 1995 and 1994
(in thousands)
Increase (Decrease) In Cash and Cash Equivalents
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30
----------------------
1995 1994
-------- --------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest and fees received $ 16,636 $ 14,678
Interest paid (5,119) (3,244)
Service charges, collection and exchange charges, commission and fees received 2,184 2,039
Cash paid to suppliers and employees (11,686) (10,756)
Income taxes paid (581) (374)
-------- --------
Net cash provided by operating activities 1,434 2,343
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturity of investment securities held-to-maturity 16,012 10,014
Purchase of investment securities held-to-maturity (16,005) (9,996)
Proceeds from sale of investment securities available-for-sale 2,122 --
Purchase of investment securities available-for-sale (2,111) (1,069)
Net decrease (increase) in loans and leases made to customers 3,005 (241)
Capital expenditures (379) (91)
Proceeds from sale of equipment 154 --
Purchase of other real estate (225) --
Proceeds from sale of other real estate owned -- 11
-------- --------
Net cash provided by (used in) investing activities 2,573 (1,372)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net decrease in demand deposits and savings accounts (7,898) (17,078)
Net increase in time deposits 8,876 617
Proceeds from short-term borrowings 4,000 --
Repayment of short-term borrowings (4,057) --
Net increase (decrease) in federal funds purchased (480) 275
Dividends paid (106) (106)
-------- --------
Net cash provided by (used in) financing activities 335 (16,292)
-------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 4,342 (15,321)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 20,610 42,577
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 24,952 $ 27,256
======== ========
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Net Income 732 578
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation on bank premises and equipment 354 300
Provision for loan and lease losses 450 405
Amortization of deferred loan fees (222) (261)
Gain on investment securities available-for-sale (19) --
Changes in -
Interest receivable (132) (8)
Interest payable 148 547
Taxes payable (148) (39)
Other assets 166 297
Other liabilities 105 524
-------- --------
Net cash provided by operating activities $ 1,434 $ 2,343
======== ========
</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 management, adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the nine months ended September 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
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
------------------- --------------------
(IN THOUSANDS) 1995 1994 1995 1994
------- ------ ------- -------
<S> <C> <C> <C> <C>
Balance, beginning of period $ 3,562 $3,257 $ 3,421 $ 3,129
Provision charged to operations 150 135 450 405
Loans and leases charged-off (100) -- (276) (153)
Recoveries on loans and leases
previously charged-off 16 9 33 20
------- ------ ------- -------
Net (charge-offs) recoveries (84) 9 (243) (133)
------- ------ ------- -------
Balance, end of period $ 3,628 $3,401 $ 3,628 $ 3,401
======= ====== ======= =======
</TABLE>
3. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
------------------- ----------------------
(IN THOUSANDS) 1995 1994 1995 1994
------- ------- -------- --------
<S> <C> <C> <C> <C>
Balance, beginning of period $26,647 $25,741 $ 26,243 $ 25,477
Net income 222 208 732 578
Cash dividends -- -- (106) (106)
Adjustment to capital in excess of par value 12 -- 12 --
------- ------- -------- --------
Balance, end of period $26,881 $25,949 $ 26,881 $ 25,949
======= ======= ======== ========
</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 $222,000, or $0.31 per share, for
the three months ended September 30, 1995, an increase of $14,000 or 6.7% over
the $208,000 reported for the comparable period in 1994. Year-to-date earnings
were $732,000, or $1.03 per share, an increase of $154,000 or 26.6% over the
$578,000 reported for the same period a year ago. The improvement in earnings
for the quarter and year-to-date is attributed to an increase in net interest
income and other income and a rebate in Federal Deposit Insurance Corporation
("FDIC") premiums which is discussed below.
On August 8, 1995, the FDIC approved a final rule which reduced
premiums that banks pay for deposit insurance from the current range of $0.23
to $0.31 per $100 of deposits to a wider range of $0.04 to $0.31. The actual
rate assessed each bank is contingent upon its capital adequacy and risk
classification. The new rates retroactively took effect on June 1, 1995 and
banks that overpaid were given a one-time refund plus interest. In September
1995, the Bank received a reimbursement of $159,000 from the FDIC which reduced
other expenses.
Noncurrent loans and leases increased from $3,567,000 at December 31,
1994 to $7,171,000 September 30, 1995. The increase was attributable to three
loan relationships aggregating $4,465,000 which were placed on nonaccrual
status during the quarter. When these loans were placed on nonaccrual,
$162,000 in uncollected interest was reversed from current earnings,
effectively offsetting the benefit from the FDIC premium refund. These loans
are, for the most part, secured by liens against real estate and the Bank is in
the process of acting against the collateral. The Bank has other credits which
are not performing and which are being monitored closely. Losses are charged
to the allowance for loan and lease losses when collectibility becomes doubtful
and the underlying collateral is considered inadequate to liquidate the
outstanding debt. The Bank anticipates providing $150,000 for possible loan
and lease losses for the fourth quarter consistent with the quarterly
provisions made for
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<PAGE> 8
the first three quarters of this year. Any charge-offs exceeding projections
could require an additional provision. At September 30, 1995, the allowance
was $3,628,000, representing 1.7% of total loans and leases outstanding,
compared to $3,421,000 or 1.6% at December 31, 1994. (See "Loan Portfolio Risk
Elements and Other Real Estate Owned.")
At September 30, 1995, total assets stood at $291,464,000, a modest
increase from $290,256,000 at December 31, 1994. Shareholders' equity grew to
$26,881,000 at September 30, 1995, representing a 2.4% increase from year-end
1994. Book value per share rose from $36.91 at December 31, 1994 to $37.81 at
September 30, 1995. Leverage and risk-based capital ratios continued to exceed
regulatory requirements by a substantial margin.
RESULTS OF OPERATIONS
Net Interest Income
Net interest income for the three and nine months ended September 30,
1995 increased $68,000 or 1.8% and $567,000 or 5.1%, 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 third
quarter of 1995 was 5.65%, which compares favorably with 5.58% for the third
quarter of last year. For the year-to-date, net interest margin was 5.83%, an
increase from the 5.47% reported for the same period in 1994.
Interest income for the three and nine months ended September 30, 1995
increased $570,000 or 11.1% and $2,043,000 or 13.7%, 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 8.33% in the
quarter from 7.53% in the year-earlier period. The average yield for the
year-to-date was 8.45%, an increase from the 7.33% reported for the same
period in 1994.
Interest expense for the three and nine months ended September 30,
1995 increased $502,000 or 37.9% and $1,476,000 or 38.9%, respectively, versus
the same periods a year ago. The increase was primarily due to a higher
average cost of deposits. The average rate paid on deposits increased to 3.49%
in the quarter from 2.57% in the third quarter of 1994. For the year-to-date,
the average rate paid on deposits was 3.38%, up from 2.44% for the comparable
period in 1994.
Other Income and Expenses
Other income for the three and nine months ended September 30, 1995
rose $39,000 or 5.5% and $164,000 or 8.0%, respectively, compared to the same
periods in the prior year. The improved results were primarily due to
increased revenue from deposit accounts. During the quarter, a gain of $19,000
was realized from the sale of investment securities available-for-sale.
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<PAGE> 9
Other expenses consist of salaries and employee benefits, occupancy
expenses and other operating expenses. For the three and nine months ended
September 30, 1995, other expenses increased $67,000 or 1.7% and $434,000 or
3.7%, respectively, compared to the same periods last year. The increase was
primarily due to the opening of two new branches on Maui, one in Kihei and the
other in Wailuku, which had previously been operated by the former Bank USA,
N.A. During the third quarter, the Wailuku branch was relocated to Kahului, a
rapidly growing and more densely populated community.
Salaries and employee benefits for the three and nine months ended
September 30, 1995 increased $131,000 or 6.8% and $468,000 or 8.4%,
respectively, over the same periods a year earlier. The growth in this
category reflects an increase in staff and normal merit and inflationary
adjustments which were adopted to keep the Bank's salary and benefit packages
competitive. In May 1995, the Bank retained 11 employees from the former Bank
USA, N.A. to operate the Maui branches.
Occupancy expenses for the three and nine months ended September 30,
1995 rose $67,000 or 6.7% and $199,000 or 6.8%, respectively, from the
comparable periods in 1994. The increase was attributable to the addition of
two new branches on Maui.
Other operating expenses for the three and nine months ended September
30, 1995 declined $131,000 or 11.6% and $233,000 or 6.8%, compared to the same
periods a year ago. The improvement was primarily due to a reduction in FDIC
insurance premiums and lower data processing fees payable to Computer Systems
International, Ltd. ("CSI"). In September 1995, the Bank received a refund of
$159,000 from the FDIC for excess premiums paid plus interest after the Bank
Insurance Fund had achieved its mandated reserve ratio of 1.25%. Data
processing fees paid to CSI were also lower by $34,000 and $120,000 for the
quarter and year-to-date periods, respectively. CSI provides 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 nine months
ended September 30, 1995 was 37.1% and 37.2%, respectively, compared to 36.6%
and 36.7% for the same periods last year.
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<PAGE> 10
FINANCIAL CONDITION
Deposits
HNB's deposits totaled $261,951,000 at September 30, 1995;
$260,973,000 at December 31, 1994; and $261,708,000 at September 30, 1994.
Since the beginning of this year, the Bank has experienced an increase in time
deposits of $8,876,000, which has been offset by a decrease in demand and
savings deposits of $2,365,000 and $5,533,000, respectively.
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 Bank had no trading securities at quarter-end. The book and
fair value of the held-to-maturity portfolio at September 30, 1995 was
$44,924,000 and $44,937,000, respectively. In May 1995, the Bank acquired U.S.
agency securities from the former Bank USA, N.A. which were classified as
available-for-sale. These securities were subsequently sold during the third
quarter generating proceeds of $2,122,000. The gross realized gain on the sale
was $19,000 based on the specific identification method. At September 30,
1995, the book and fair value of the available-for-sale portfolio was
$1,497,000.
Loan Portfolio and Loan Concentrations
At September 30, 1995, loans and leases were $214,388,000,
representing a decline of $3,026,000 or 1.4% from year-end 1994 and an increase
of $347,000 or 0.2%, compared to the same date in 1994. During the second
quarter of 1995, 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 September 30, 1995, real estate loans totaled $139,477,000,
representing 65.1% of total loans and leases outstanding. Of this amount,
$111,279,000 or 79.8% of the Bank's real estate loans, were secured by
mortgages on one-to-four family residential properties in Hawaii.
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<PAGE> 11
Loan Portfolio Risk Elements and Other Real Estate Owned
The Bank had no restructured loans and leases outstanding at September
30, 1995, December 31, 1994 or September 30, 1994. Total noncurrent loans and
leases increased to $7,171,000 at September 30, 1995, representing 3.3% of
loans and leases outstanding, compared to $3,567,000 or 1.6% at December 31,
1994, and $3,356,000 or 1.6% at September 30, 1994. The increase was
attributable to three loan relationships aggregating $4,465,000 which were
placed on nonaccrual status during the quarter. These loans are, for the most
part, secured by liens against real estate and the Bank is in the process of
acting against the collateral. The Bank has other credits which are not
performing and which are being monitored closely. Losses are charged to the
allowance for loan and lease losses when collectibility becomes doubtful and
the underlying collateral is considered inadequate to liquidate the outstanding
debt. The Bank anticipates providing $150,000 for possible loan and lease
losses for the fourth quarter consistent with the quarterly provisions made for
the first three quarters of this year. Any charge-offs exceeding projections
could require an additional provision. (See "Provision and Allowance for Loan
and Lease Losses" for comparative data on the loan loss provision, net
charge-offs and the allowance for loan and lease losses.)
At quarter-end, other real estate owned ("OREO") totaled $1,163,000
and consisted of three 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>
September 30 December 31 September 30
1995 1994 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Loans and Leases Past Due 90 Days or More $ 597,000 $2,241,000 $2,351,000
Nonaccrual Loans and Leases 6,574,000 1,326,000 1,005,000
------------- ------------- -------------
Total Noncurrent Loans and Leases $7,171,000 $3,567,000 $3,356,000
Other Real Estate Owned $1,163,000 $ 938,000 $ 939,000
- --------------------------------------------------------------------------------------------------------------
</TABLE>
Provision and Allowance for Loan and Lease Losses
During the three and nine months ended September 30, 1995, the Bank
provided $150,000 and $450,000, respectively, for possible loan and lease
losses, compared to $135,000 and $405,000 for the three and nine months ended
September 30, 1994.
Net charge-offs for the quarter and year-to-date were $84,000 and
$243,000, respectively, compared to a net recovery of $9,000 and a net
charge-off of $133,000 for the same periods in 1994. On an annualized basis,
net charge-offs as a
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<PAGE> 12
percentage of average loans and leases was 0.16% for the quarter and 0.15% for
the year-to-date. For the comparable periods in 1994, the ratio was -0.02% and
0.08%, respectively.
At September 30, 1995, the allowance for loan and lease losses stood
at $3,628,000, compared to $3,421,000 at December 31, 1994 and $3,401,000 at
September 30, 1994. The ratio of the allowance to total loans and leases
outstanding was 1.7%, 1.6% and 1.6% at September 30, 1995, December 31, 1994
and September 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 a 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 September 30, 1995, there were no advances from the FHLB or
federal funds purchased outstanding.
For the first nine months of 1995, net cash provided by operating
activities was $1,434,000. Net cash provided by investing activities was
$2,573,000, largely due to the sale of a commercial mortgage loan package to an
investor. Net cash provided by financing activities was $335,000, due
primarily to a net increase in time deposits, partly offset by a net decrease
in demand and savings deposits.
Capital
Shareholders' equity totaled $26,881,000 at September 30, 1995, an
increase of $638,000 or 2.4% from December 31, 1994 and $932,000 or 3.6% from
September 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 $37.81 at September 30, 1995, compared
to $36.91 and $36.50 at December 31, 1994 and September 30, 1994, respectively.
The Company's leverage capital ratio was 9.22% at September 30, 1995;
9.12% at December 31, 1994; and 8.89% at September 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 12.95% and 14.21%,
respectively, at September 30, 1995, compared to 12.33% and 13.59% at December
31, 1994; and 12.30% and 13.55% at September 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 November 9, 1995 By /s/Warren K.K. Luke
---------------- --------------------
Warren K.K. Luke
President
Date November 9, 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 NINE MONTHS ENDED SEPTEMBER 30, 1995
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 19,952
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0
0
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</TABLE>
