<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 March 31, 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)
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<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 March 31, 1995 - 711,000 shares
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<PAGE> 2
TABLE OF CONTENTS
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Page
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets - March 31, 1995,
December 31, 1994 and March 31, 1994 (Unaudited) . . . . . . . . . . . . . . . . . 3
Consolidated Statements of Income - Three months
ended March 31, 1995 and 1994 (Unaudited) . . . . . . . . . . . . . . . . . . . . . 4
Consolidated Statements of Cash Flows - Three months
ended March 31, 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 15
</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)
MARCH 31, 1995, DECEMBER 31, 1994 AND MARCH 31, 1994
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
MARCH 31 DECEMBER 31 MARCH 31
---------------------------------
1995 1994 1994
-------- -------- --------
<S> <C> <C> <C>
ASSETS:
Cash and due from banks $18,648 $19,610 $19,148
Federal funds sold 4,750 1,000 20,250
Investment securities (note 2)
Held-to-maturity (fair value of $43,485, 43,929 44,930 43,015
$43,892 and $42,786, respectively)
Available-for-sale 1,497 1,489 420
Loans and leases (note 3) 219,052 217,414 211,297
Less allowance for possible loan
and lease losses (note 4) 3,453 3,421 3,249
-------- -------- --------
215,599 213,993 208,048
Premises and equipment 4,348 3,929 4,129
Other assets 4,713 5,305 4,269
-------- -------- --------
Total assets $293,484 $290,256 $299,279
======== ======== ========
LIABILITIES:
Deposits -
Demand $91,829 $91,331 $97,013
Savings 113,123 117,447 122,356
Time 55,308 52,195 51,244
-------- -------- --------
Total deposits 260,260 260,973 270,613
Federal funds purchased 371 480 300
Short-term borrowings 4,679 1,000 994
Other liabilities 1,788 1,559 1,834
-------- -------- --------
Total liabilities 267,098 264,012 273,741
SHAREHOLDERS' EQUITY (NOTE 5):
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 12,136 12,136
Retained earnings 13,539 13,397 12,691
-------- -------- --------
Total shareholders' equity 26,386 26,244 25,538
-------- -------- --------
Total liabilities and shareholders'
equity $293,484 $290,256 $299,279
======== ======== ========
</TABLE>
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<PAGE> 4
HAWAII NATIONAL BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31,
----------------------------
1995 1994
------- -------
<S> <C> <C>
INTEREST INCOME:
Interest and fees on loans $4,850 $4,125
Interest on direct financing leases 31 36
Interest on Federal funds sold 52 161
Interest on investment securities-
Taxable 546 511
Exempt from Federal income tax 19 19
------- -------
Total interest income 5,498 4,852
------- -------
INTEREST EXPENSE:
Deposits 1,573 1,220
Federal funds purchased 14 5
Short-term borrowings 34 7
------- -------
Total interest expense 1,621 1,232
------- -------
Net interest income 3,877 3,620
------- -------
PROVISION FOR LOAN AND LEASE LOSSES (NOTE 4) 150 135
------- -------
Net interest income after provision for
loan and lease losses 3,727 3,485
------- -------
OTHER INCOME:
Service charges on deposit accounts 258 274
Other service charges, collection and
exchange charges, commissions and fees 473 375
------- -------
731 649
------- -------
OTHER EXPENSES:
Salaries and employee benefits 1,966 1,787
Occupancy expense of bank premises 1,034 952
Other operating expenses 1,062 1,133
------- -------
4,062 3,872
------- -------
Income before income taxes 396 262
INCOME TAX PROVISION 147 95
------- -------
Net income $249 $167
------- -------
PER SHARE DATA:
Net income $0.35 $0.23
Cash dividend $0.15 $0.15
Average shares outstanding 711,000 711,000
</TABLE>
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<PAGE> 5
HAWAII NATIONAL BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(IN THOUSANDS)
Increase (Decrease) In Cash and Cash Equivalents
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31,
----------------------------
1995 1994
------- -------
<S> <C> <C>
Cash flows from operating activities:
Interest and fees received $5,405 $4,947
Interest paid (1,465) (906)
Service charges, collection and exchange charges,
commission and fees received 732 649
Cash paid to suppliers and employees (3,826) (3,498)
Income taxes paid (25) (32)
------- -------
Net cash provided by operating activities 821 1,160
------- -------
Cash flows from investing activities:
Proceeds from maturity of investment securities
held-to-maturity 4,004 5,005
Purchase of investment securities held-to-maturity (3,010) (4,003)
Net decrease (increase) in loans and leases made to
customers (1,698) 2,485
Capital expenditures (232) (28)
Proceeds from sale of equipment 152 --
Proceeds from sale of other real estate owned -- 10
------- -------
Net cash provided by (used in) investing activities (784) 3,469
------- -------
Cash flows from financing activities:
Net decrease in demand deposits and savings accounts (3,825) (8,821)
Net increase in time deposits 3,113 1,266
Net increase (decrease) in short-term borrowings 3,679 (6)
Net decrease in federal funds purchased (109) (140)
Dividends paid (107) (107)
------- -------
Net cash provided by (used in) financing activities 2,751 (7,808)
------- -------
Net increase (decrease) in cash and cash equivalents 2,788 (3,179)
Cash and cash equivalents at beginning of period 20,610 42,577
------- -------
Cash and cash equivalents at end of period $23,398 $39,398
======= =======
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY
OPERATING ACTIVITIES:
Net Income $249 $167
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation on bank premises and equipment 121 99
Provision for loan and lease losses 150 135
Amortization of deferred loan fees (58) (125)
Changes in -
Interest receivable (35) 220
Interest payable 156 326
Taxes payable 122 63
Other assets 166 152
Other liabilities (50) 123
------- -------
Net cash provided by operating activities $821 $1,160
======= =======
</TABLE>
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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 three months ended March 31, 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. Investment Securities
Comparative book and fair values of investment securities at March 31, 1995,
December 31, 1994 and March 31, 1994 were as follows:
<TABLE>
<CAPTION>
March 31, 1995
(in thousands) ------------------------------------------------
Securities Held-to-Maturity Unrealized Unrealized
Book Value Gains Losses Fair Value
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
U.S. Treasury and other U.S.
Government Agencies $42,929 $ 60 $556 $42,433
States and Political Subdivisions 1,000 52 -- 1,052
------- ---- ---- -------
Total $43,929 $112 $556 $43,485
------- ---- ---- -------
Securities Available-for-Sale
Equity Securities $ 1,497 -- -- $ 1,497
------- ---- ---- -------
Total $ 1,497 -- -- $ 1,497
------- ---- ---- -------
</TABLE>
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<CAPTION>
December 31, 1994
(in thousands) -----------------------------------------------
Securities Held-to-Maturity Unrealized Unrealized
Book Value Gains Losses Fair Value
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
U.S. Treasury and other U.S.
Government Agencies $43,930 $11 $1,102 $42,839
States and Political Subdivisions 1,000 53 -- 1,053
------- --- ---- -------
Total $44,930 $64 $1,102 $43,892
------- --- ---- -------
Securities Available-for-Sale
Equity Securities $ 1,489 -- -- $ 1,489
------- --- ---- -------
Total $ 1,489 -- -- $ 1,489
------- --- ---- -------
</TABLE>
<TABLE>
<CAPTION>
March 31, 1994
(in thousands) ------------------------------------------------
Securities Held-to-Maturity Unrealized Unrealized
Book Value Gains Losses Fair Value
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
U.S. Treasury and other U.S.
Government Agencies $42,015 $129 $437 $41,707
States and Political Subdivisions 1,000 79 -- 1,079
------- ---- ---- -------
Total $43,015 $208 $437 $42,786
------- ---- ---- -------
Securities Available-for-Sale
Equity Securities $ 420 -- -- $ 420
------- ---- ---- -------
Total $ 420 -- -- $ 420
------- ---- ---- -------
</TABLE>
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<PAGE> 7
HAWAII NATIONAL BANCSHARES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
2. Investment Securities (cont.)
The book and fair values of investment securities at March 31, 1995, by
contractual maturity, excluding securities which have no stated maturity, were
as follows:
<TABLE>
<CAPTION>
(in thousands) March 31, 1995
----------------------
Securities Held-to-Maturity Book Value Fair Value
---------- ----------
<S> <C> <C>
Due within one year $21,934 $21,792
Due after one but within five years 21,995 21,693
Due after five but within ten years -- --
Due after ten years -- --
------- -------
Total $43,929 $43,485
------- -------
</TABLE>
During the first quarter of 1995, there were no sales or transfers of
securities between the held-to-maturity, trading or available-for-sale
categories.
3. Loans and Leases
Effective January 1, 1995, the Company adopted Statement of Financial
Accounting Standards No. 114 ("SFAS 114") "Accounting by Creditors for
Impairment of a Loan" and Statement of Financial Accounting Standards No. 118
("SFAS 118"), "Accounting by Creditors for Impairment of a Loan--Income
Recognition and Disclosures." Under these new standards, a loan is considered
impaired when, based on current information and events, it is probable that the
Company will be unable to collect all amounts due according to the contractual
terms of the loan agreement. Excluded from the scope of SFAS 114 and 118 are
commitments to lend, larger groups of smaller balance homogeneous loans that
are collectively evaluated for impairment, loans measured at fair value or
lower of cost or fair value, leases and debt securities. Interest income on
impaired loans is recognized in accordance with the Company's nonaccrual loan
policy. Subsequent payments received are generally applied to reduce the
principal balance.
The average recorded investment in impaired loans for the first quarter of 1995
was $1,345,000. During this period, no interest income was recognized on loans
in this category.
4. Allowance for Possible Loan and Lease Losses
<TABLE>
<CAPTION>
Three Months Ended March 31,
----------------------------
(in thousands) 1995 1994
------ ------
<S> <C> <C>
Balance, beginning of period $3,421 $3,129
Provision charged to operations 150 135
Loans and leases charged-off (127) (21)
Recoveries credited to allowance 9 6
------ ------
Net charge-offs (118) (15)
------ ------
Balance, end of period $3,453 $3,249
------ ------
</TABLE>
The following table presents additional information on the allowance for loan
and lease losses as it relates to impaired loans:
<TABLE>
<CAPTION>
Three Months Ended March 31,
----------------------------
(in thousands) 1995 1994
------ ------
<S> <C> <C>
The amount of the recorded investment in impaired loans
for which there is a related allowance for credit losses $ -- $ --
The amount of the recorded investment in impaired loans
for which there is no related allowance for credit losses 1,519 --
------ -------
Total recorded investment in impaired loans $1,519 $ --
====== =======
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<PAGE> 8
HAWAII NATIONAL BANCSHARES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
5. Statement of Changes in Shareholders' Equity
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<CAPTION>
Three Months Ended March 31,
----------------------------
(in thousands) 1995 1994
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<S> <C> <C>
Balance, beginning of period $26,244 $25,478
Net income 249 167
Cash dividends (107) (107)
------- -------
Balance, end of period $26,386 $25,538
------- -------
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<PAGE> 9
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
income 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 $249,000 for the three months ended
March 31, 1995, an increase of $82,000 or 49.1% over the comparable period in
1994. The improvement in earnings was attributable to an increase in net
interest income and other income from fees and commissions, partly offset by an
increase in other expenses. Earnings per share were $0.35 for the first
quarter of 1995, compared to $0.23 for the same quarter a year ago.
At March 31, 1995, total assets were $293,484,000, an increase of 1.1%
from total assets of $290,256,000 at December 31, 1994. Nonperforming loans,
as a percentage of total loans and leases outstanding, increased from 1.6% at
December 31, 1994 to 1.8% at March 31, 1995. Subsequent to the end of the
quarter, nonperforming loans were reduced to 1.3% of the loan and lease
portfolio. Shareholder's equity totaled $26,386,000 at March 31, 1995, an
increase of $142,000 from year-end 1994 after payment of cash dividends of
$106,650. Book value per share rose from $36.91 at December 31, 1994 to $37.11
at March 31, 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 months ended March 31, 1995
increased $257,000 or 7.1%, over the comparable period in 1994. During the
quarter, the average balance of loans and leases increased to 81.8% of average
interest-earning assets from 76.7% in the same period a year ago. Net interest
margin improved in the first quarter of 1995 to 5.92%, up 60 basis points from
5.32% in the first quarter of 1994.
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<PAGE> 10
Interest income for the three months ended March 31, 1995 increased
$646,000 or 13.3%, compared to the same period in the prior year. The growth
in interest income was due to higher yields and a higher average balance of
loans and leases. The average yield on interest-earning assets rose to 8.41%
in the quarter from 7.13% in the comparable period a year earlier. The average
balance of loans and leases increased $5,158,000 in the first quarter of 1995,
compared to the first quarter of 1994.
Interest expense for the three months ended March 31, 1995 increased
$389,000 or 31.6%, versus the same period in 1994. The increase was due to a
higher average cost of deposits. The average rate paid on deposits increased
to 3.25% in the first quarter of 1995 from 2.37% in the first quarter of 1994.
Other Income and Expenses
Other income for the three months ended March 31, 1995 increased
$82,000 or 12.6%, compared to the same quarter in the prior year. The improved
results were attributable to increased revenue from other service charges,
collection and exchange charges, commissions and fees.
Other expenses consist primarily of salaries and employee benefits,
occupancy expense and other operating expenses. For the three months ended
March 31, 1995, other expenses increased $190,000 or 4.9%, compared to the same
period last year.
Salaries and employee benefits for the first quarter of 1995 increased
$179,000 or 10.0%, over the same period a year earlier. The growth in this
category reflected both an increase in staff as well as normal merit and
inflationary adjustments.
Occupancy expenses for the three months ended March 31, 1995 rose
$82,000 or 8.6% from the comparable period in 1994. The increase was
attributable to adjustments in lease rents for Bank premises and higher repair
and depreciation charges related to furniture, fixtures and equipment.
Other operating expenses for the first quarter of 1995 were $71,000 or
6.3% lower, compared to same period a year ago. The decrease 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 federal and state income tax provision for the first
quarter of 1995 was $147,000, an increase of $52,000 from the same quarter a
year ago. The effective income tax rates for these periods was 37.1% and
36.3%, respectively.
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<PAGE> 11
FINANCIAL CONDITION
Deposits
At March 31, 1995, total deposits were $260,260,000, compared to
$260,973,000 at December 31, 1994, and $270,613,000 at March 31, 1994. As
deposit rates remained low during most of 1994, there was a general migration
in funds away from bank deposits into other investment alternatives. The
outflow in 1994 was consistent with an industry trend. Since year-end 1994,
the Bank's deposit base has remained relatively stable.
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 Reserve Bank and the Federal Home Loan Bank of Seattle ("FHLB").
The Bank has no derivative securities, such as structured notes, collateralized
mortgage obligations or stripped mortgage-backed securities.
At March 31, 1995, the book and fair value of the held-to-maturity
portfolio was $43,929,000 and $43,485,000, 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 as of March 31, 1995. During the quarter,
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 March 31, 1995, loans and leases were $219,052,000, an increase of
$1,638,000 or 0.8% from year-end 1994 and $7,755,000 or 3.7% above the level
reported at March 31, 1994. The Bank had no significant concentrations of
credit with any individual party; however, its lending was concentrated on the
island of Oahu. Real estate loans totaled $141,906,000 at March 31, 1995,
representing 64.8% of total loans and leases outstanding. Of this amount,
$106,823,000 or 75.3% 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> 12
Loan Portfolio Risk Elements and Other Real Estate Owned
Total restructured and noncurrent loans and leases increased to
$3,972,000 at March 31, 1995, representing 1.8% of loans and leases
outstanding, compared to $3,567,000 or 1.6% at December 31, 1994, and $724,000
or 0.3% at March 31, 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. At March 31, 1995, other real estate owned
totaled $938,000 and consisted of two properties. In January 1994, one of the
properties was sold for $150,000 under an agreement of sale.
<TABLE>
<CAPTION>
March 31 December 31 March 31
1995 1994 1994
---------- ---------- ---------
<S> <C> <C> <C>
Restructured Loans and Leases $ -- $ -- $ 53,000
Loans and Leases Past Due 90 Days or More 2,352,000 2,241,000 529,000
Nonaccrual Loans and Leases 1,620,000 1,326,000 142,000
---------- ---------- --------
Total Restructured and Noncurrent
Loans and Leases $3,972,000 $3,567,000 $724,000
========== ========== ========
Other Real Estate Owned $ 938,000 $ 938,000 $940,000
========== ========== ========
</TABLE>
Subsequent to the end of the quarter, nonperforming loans were reduced
to 1.3% of total loans and leases outstanding from 1.8% at March 31, 1995. The
improvement was attributable to 3 commercial real estate loans to the same
borrower totaling $1,237,000 which were brought current.
Provision and Allowance for Loan and Lease Losses
During the three months ended March 31, 1995, the Bank provided
$150,000 for possible loan losses, compared to $135,000 for the three months
ended March 31, 1994.
Reflecting Hawaii's slow economic recovery, net charge-offs for the
three months ended March 31, 1995 increased by $103,000, over the comparable
period in 1994. The majority of the charge-offs were in the consumer loan
category. For the first quarter of 1995, the annualized ratio of net
charge-offs to average loans and leases was 0.22%, an increase from the 0.03%
reported for the same period in 1994.
At March 31, 1995, the allowance for loan and lease losses stood at
$3,453,000, compared to $3,421,000 at December 31, 1994 and $3,249,000 at March
31, 1994. The ratio of the allowance to total loans and leases outstanding was
1.6%, 1.6% and 1.5% at March 31, 1995, December 31, 1994 and March 31, 1994,
respectively.
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<PAGE> 13
Liquidity
The Bank has adequate liquidity to accommodate fluctuations in deposit
levels, fund operations, provide for customer credit needs and meet obligations
and commitments on a timely basis. The Bank has no brokered deposits. It has
generally been a net seller of federal funds. During 1994, the Bank
established a line of credit with the Federal Home Loan Bank of Seattle equal
to 10% of total assets, including a cash management agreement line of 5%. This
facility enhances the Bank's asset and liability management by providing an
alternative source of liquidity.
Operating activities provided net cash of $821,000 for the three
months ended March 31, 1995, compared to $1,160,000 reported for the same
period last year. Investing activities used net cash of $784,000 and provided
net cash of $3,469,000 for the first quarter of 1995 and 1994, respectively.
Financing activities provided net cash of $2,751,000 for the three months ended
March 31, 1995 and used net cash of $7,808,000 for the three months ended March
31, 1994. During the quarter, a decrease in demand deposits and savings
accounts of $3,825,000 was partly offset by an increase in time deposits of
$3,113,000. In February 1995, the Bank obtained a 4-month, $4,000,000 advance
from the FHLB.
Shareholders' Equity and Capital Resources
Shareholders' equity totaled $26,386,000 at March 31, 1995, an
increase of $142,000 or 0.5% from December 31, 1994 and $848,000 or 3.3% from
March 31, 1994. The growth in equity was achieved through retention of
earnings after payment of cash dividends of $106,650. Book value per share
increased to $37.11 at March 31, 1995, compared to $36.91 and $35.92 at
December 31, 1994 and March 31, 1994, respectively.
The Company's leverage capital ratio was 9.19% at March 31, 1995;
9.12% at December 31, 1994; and 8.84% at March 31, 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 Bank's Tier 1 and total capital ratios were 12.21% and 13.47%,
respectively, at March 31, 1995, compared to 12.33% and 13.59% at December 31,
1994; and 12.06% and 13.32% at March 31, 1994.
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<PAGE> 14
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 10-K
(a) Exhibits
None
(b) Reports on Form 8-K
None
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<PAGE> 15
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)
<TABLE>
<S> <C> <C> <C>
Date May 11, 1995 By /s/Warren K.K. Luke
---------------------- ----------------------------------------
Warren K.K. Luke
President
Date May 11, 1995 By /s/Ernest T. Murata
---------------------- -----------------------------------------
Ernest T. Murata
Vice President, Treasurer,
Assistant Secretary and
Chief Financial Officer
</TABLE>
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<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<EXCHANGE-RATE> 1
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0
0
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</TABLE>
