Bank of Hawaii Corporation First Quarter 2019 Financial Results

Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $1.43 for the first quarter of 2019, an increase from diluted earnings per share of $1.30 in the previous quarter and $1.28 in the same quarter last year. Net income for the first quarter of 2019 was $58.8 million, an increase of $4.9 million compared with net income of $53.9 million in the fourth quarter of 2018 and up $4.8 million from net income of $54.0 million in the first quarter of 2018.

“We were pleased with our financial performance during the first quarter of 2019,” said Peter S. Ho, Chairman, President, and CEO. “We had growth in both loans and deposits, our net interest margin expanded, asset quality remained strong, and expenses were well controlled.”

The return on average assets for the first quarter of 2019 was 1.38 percent, up from 1.26 percent during the previous quarter and 1.29 percent in the same quarter last year. The return on average equity for the first quarter of 2019 was 18.81 percent, up from 17.05 percent in the fourth quarter of 2018 and 17.74 percent in the first quarter of 2018.

Financial Highlights

Net interest income, on a taxable-equivalent basis, for the first quarter of 2019 was $125.8 million, an increase of $0.6 million from net interest income of $125.2 million in the fourth quarter of 2018 and an increase of $5.5 million from net interest income of $120.3 million in the first quarter of 2018. The net interest margin was 3.12 percent for the first quarter of 2019, up 2 basis points compared with the net interest margin of 3.10 percent in the previous quarter and up 12 basis points from the net interest margin of 3.00 percent for the first quarter last year. Analyses of the changes in net interest income are included in Tables 8a and 8b.

Results for the first quarter of 2019 included a provision for credit losses of $3.0 million compared with a provision for credit losses of $2.0 million in the fourth quarter of 2018 and $4.1 million in the first quarter of 2018. The lower provision for credit losses during the fourth quarter of 2018 was largely due to the release of credit loss reserves related to the sale of the credit card portfolio.

Noninterest income was $43.7 million in the first quarter of 2019, an increase of $1.6 million compared with noninterest income of $42.1 million in the fourth quarter of 2018 and a decrease of $0.3 million compared with noninterest income of $44.0 million in the first quarter of 2018. Noninterest income in the first quarter of 2019 included a $1.4 million commission related to insurance products offered through a third-party administrator Noninterest income in the first quarter of 2018 included $2.8 million from a low-income housing investment sale. There were no significant items in noninterest income during the fourth quarter of 2018.

Noninterest expense was $93.1 million in the first quarter of 2019, a decrease of $2.8 million compared with noninterest expense of $95.9 million in the fourth quarter of 2018 and a decrease of $1.3 million from noninterest expense of $94.4 million in the same quarter last year. Noninterest expense in the first quarter of 2019 included seasonal payroll expenses of approximately $2.7 million. Noninterest expense in the fourth quarter of 2018 included $3.0 million in one-time significant items related to a medical expense, an operational loss, and legal expenses. Noninterest expense in the first quarter of 2018 included seasonal payroll expenses of approximately $2.5 million in addition to a legal reserve of $2.0 million. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The efficiency ratio during the first quarter of 2019 declined to 55.22 percent compared with 57.75 percent in the previous quarter and 57.91 percent in the same quarter last year.

The effective tax rate for the first quarter of 2019 was 18.85 percent compared with an effective tax rate of 20.92 percent in the previous quarter and 16.19 percent during the same quarter last year. The first quarter of 2019 included tax benefits of $1.9 million related to a commercial customer’s exercise of an early-buy-out option on a leveraged lease. There were no significant items impacting the tax rate during the fourth quarter of 2018. The tax rate during the first quarter of 2018 was favorably impacted by a $2.0 million adjustment to the Company’s low-income housing investments.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services and Private Banking, and Treasury & Other. Results for the business segments are determined based on the Company’s internal financial management reporting process and organizational structure. Selected financial information is included in Table 13.

Asset Quality

The Company’s asset quality remained strong during the first quarter of 2019. Total non-performing assets were $17.9 million at March 31, 2019, compared with non-performing assets of $12.9 million at December 31, 2018 and $15.7 million at March 31, 2018. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.17 percent at the end of the first quarter of 2019, compared with 0.12 percent at the end of the fourth quarter of 2018 and 0.16 percent at the end of the first quarter last year.

Accruing loans and leases past due 90 days or more were $6.1 million at March 31, 2019, compared with $6.6 million at December 31, 2018 and $8.2 million at March 31, 2018. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $48.6 million at March 31, 2019, down from $48.7 million at December 31, 2018 and $56.7 million at March 31, 2018. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loans and leases charged off during the first quarter of 2019 were $3.7 million or 0.14 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $6.8 million during the quarter were partially offset by recoveries of $3.2 million. Net charge-offs during the fourth quarter of 2018 were $4.0 million or 0.15 percent annualized of total average loans and leases outstanding and were comprised of $6.9 million in charge-offs partially offset by recoveries of $2.9 million. Net charge-offs during the first quarter of 2018 were $3.5 million or 0.15 percent annualized of total average loans and leases outstanding and were comprised of $6.0 million in charge-offs partially offset by recoveries of $2.5 million.

The allowance for loan and lease losses was $106.0 million at March 31, 2019, a decrease from $106.7 million at December 31, 2018 and $107.9 million at March 31, 2018. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.01 percent at March 31, 2019 compared with 1.02 percent at December 31, 2018 and 1.09 percent at March 31, 2018. The reserve for unfunded commitments of $6.8 million at March 31, 2019 was unchanged from the prior quarter and the same quarter last year. Details of loan and lease charge-offs, recoveries, and components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets were $17.4 billion at March 31, 2019, up from total assets of $17.1 billion at December 31, 2018 and $17.1 billion at March 31, 2018. Average total assets were $17.2 billion during the first quarter of 2019, an increase from average total assets of $17.0 billion during the previous quarter and the same quarter last year.

The investment securities portfolio was $5.5 billion at March 31, 2019 compared with $5.5 billion at December 31, 2018 and $6.0 billion at March 31, 2018. The portfolio at March 31, 2019 remains largely comprised of securities issued by U.S. government agencies and includes $3.7 billion in securities held to maturity and $1.9 billion in securities available for sale.

Total loans and leases were $10.5 billion at March 31, 2019, an increase of $99.8 million or 1.0 percent from total loans and leases of $10.4 billion at December 31, 2018 and up $632.0 million or 6.4 percent from $9.9 billion at March 31, 2018. Average total loans and leases were $10.5 billion during the first quarter of 2019, an increase of 1.4 percent from average loans and leases of $10.3 billion during the previous quarter and up 6.8 percent from $9.8 billion during the same quarter last year. The commercial portfolio was $4.0 billion at the end of the first quarter of 2019, up $20.5 million or 0.5 percent from commercial loans of $4.0 billion at the end of the fourth quarter of 2018 and up $207.5 million or 5.5 percent from commercial loans of $3.8 billion at the end of the first quarter last year. The previously mentioned early buy out of a leveraged lease during the first quarter of 2019 reduced the commercial loan portfolio by $15.0 million in outstanding balances. Consumer loans were $6.5 billion at March 31, 2019, up $79.4 million or 1.2 percent from consumer loans of $6.5 billion at the end of the fourth quarter of 2018 and up $424.5 million or 6.9 percent from $6.1 billion at the end of the first quarter last year. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $15.3 billion at March 31, 2019, up $240.1 million or 1.6 percent from total deposits of $15.0 billion at December 31, 2018 and up $310.2 million or 2.1 percent from total deposits of $15.0 billion at March 31, 2018. Average total deposits were $15.0 billion during the first quarter of 2019, an increase of $191.9 million compared with average total deposits of $14.8 billion during the previous quarter and an increase of $251.1 million compared with average total deposits of $14.7 billion during the same quarter last year. Consumer deposits increased to $7.9 billion at March 31, 2019, up $218.1 million or 2.8 percent from consumer deposits of $7.7 billion at the end of the fourth quarter of 2018 and up $278.9 million or 3.6 percent from $7.7 billion at the end of the first quarter last year. Commercial deposits increased to $6.2 billion at March 31, 2019, up $63.9 million or 1.0 percent from commercial deposits of $6.1 billion at the end of the fourth quarter of 2018 and up $264.8 million or 4.5 percent from $5.9 billion at the end of the first quarter last year. Other deposits, including public funds, were $1.2 billion at March 31, 2019, down slightly from $1.2 billion at December 31, 2018 and down from $1.4 billion at March 31, 2018. Deposit balances are summarized in Tables 7 and 10.

Total shareholders’ equity was $1.3 billion at March 31, 2019, up slightly from December 31, 2018 and an increase from $1.2 billion at March 31, 2018. The Tier 1 Capital Ratio was 12.75 percent at March 31, 2019 compared with 13.07 percent at December 31, 2018 and 13.37 percent at March 31, 2018. The Tier 1 Leverage Ratio at March 31, 2019 was 7.46 percent compared with 7.60 percent at December 31, 2018 and 7.46 percent at March 31, 2018.

During the first quarter of 2019, the Company repurchased 513.4 thousand shares of common stock at a total cost of $39.9 million under its share repurchase program. The average cost was $77.79 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through March 31, 2019, the Company has repurchased 55.8 million shares and returned over $2.2 billion to shareholders at an average cost of $39.50 per share. Remaining buyback authority under the share repurchase program was $121.8 million at March 31, 2019. From April 1 through April 18, 2019 the Company repurchased an additional 114.0 thousand shares of common stock at an average cost of $80.79 per share.

The Company’s Board of Directors declared a quarterly cash dividend of $0.65 per share on the Company’s outstanding shares, an increase of 4.8 percent from the cash dividend of $0.62 per share in the previous quarter. The dividend will be payable on June 14, 2019 to shareholders of record at the close of business on May 31, 2019.

Hawaii Economy

General economic conditions in Hawaii remained healthy during the first quarter of 2019. The statewide seasonally-adjusted unemployment continues to remain low at 2.8 percent in March 2019, well below the 3.8 percent unemployment rate nationally.

The real estate market on Oahu remained strong during the first quarter of 2019 with a moderate decrease in home sales. Single-family home sales declined 5.7 percent and condominium sales declined 10.5 percent compared with sales during the first quarter of 2018. The median sales price of a single-family home increased 2.0 percent and the median sales price of a condominium decreased 3.2 percent compared with the same quarter last year. As of March 31, 2019, the inventory of single-family homes and condominiums on Oahu was 3.4 months and 3.6 months, respectively.

For the first two months of 2019, total visitor arrivals increased 1.8 percent although visitor spending declined 2.4 percent compared to the same period in 2018. Tourism during 2019 is expected to continue performing well. Scheduled air seats to Hawaii are projected to expand as Southwest Airlines began flying to Hawaii in March and Hawaiian Airlines began offering the first non-stop flights between Hawaii and Boston in April. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its first quarter financial results today at 2:00 p.m. Eastern Daylight Time (8:00 a.m. Hawaii Time). The call will be accessible via teleconference and via the investor relations link of Bank of Hawaii Corporation’s website, www.boh.com. The toll-free number is 1 [phone] in the United States and Canada and 1 [phone] for other international callers. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning approximately 10:00 a.m. Hawaii Time on Monday, April 22, 2019. The replay number is 1 [phone] in the United States and Canada and 1 [phone] from other international locations. Enter the pass code 4456158 when prompted. In addition, a replay will be available on the Company’s website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain “forward-looking statements,” such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation’s Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.

Bank of Hawaii Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawaii, American Samoa, and the West Pacific. The Company’s principal subsidiary, Bank of Hawaii, was founded in 1897. For more information about Bank of Hawaii Corporation, see the Company’s website, www.boh.com.

Bank of Hawaii Corporation and Subsidiaries
Financial Highlights										Table 1
		Three Months Ended
		March 31,				December 31,				March 31,
(dollars in thousands, except per share amounts)		2019				2018				2018
For the Period:
Operating Results
Net Interest Income		$	124,837			$	123,973			$	118,956
Provision for Credit Losses			3,000				2,000				4,125
Total Noninterest Income			43,679				42,108				44,035
Total Noninterest Expense			93,057				95,911				94,384
Net Income			58,799				53,911				54,040
Basic Earnings Per Share			1.44				1.30				1.29
Diluted Earnings Per Share			1.43				1.30				1.28
Dividends Declared Per Share			0.62				0.62				0.52
Performance Ratios
Return on Average Assets			1.38	%			1.26	%			1.29	%
Return on Average Shareholders' Equity			18.81				17.05				17.74
Efficiency Ratio 1			55.22				57.75				57.91
Net Interest Margin 2			3.12				3.10				3.00
Dividend Payout Ratio 3			43.06				47.69				40.31
Average Shareholders' Equity to Average Assets			7.35				7.39				7.29
Average Balances
Average Loans and Leases		$	10,467,321			$	10,320,051			$	9,803,753
Average Assets			17,236,059				16,988,550				16,957,430
Average Deposits			14,971,404				14,779,511				14,720,266
Average Shareholders' Equity			1,267,438				1,254,704				1,235,550
Per Share of Common Stock
Book Value		$	30.91			$	30.56			$	29.33
Tangible Book Value			30.14				29.80				28.59
Market Value
Closing			78.87				67.32				83.10
High			83.94				82.80				89.09
Low			66.54				63.64				78.40
		March 31,				December 31,				March 31,
		2019				2018				2018
As of Period End:
Balance Sheet Totals
Loans and Leases		$	10,548,609			$	10,448,774			$	9,916,628
Total Assets			17,446,413				17,143,974				17,136,030
Total Deposits			15,267,310				15,027,242				14,957,133
Other Debt			110,624				135,643				235,699
Total Shareholders' Equity			1,269,690				1,268,200				1,241,193
Asset Quality
Non-Performing Assets		$	17,925			$	12,930			$	15,736
Allowance for Loan and Lease Losses			106,023				106,693				107,938
Allowance to Loans and Leases Outstanding			1.01	%			1.02	%			1.09	%
Capital Ratios
Common Equity Tier 1 Capital Ratio			12.75	%			13.07	%			13.37	%
Tier 1 Capital Ratio			12.75				13.07				13.37
Total Capital Ratio			13.87				14.21				14.58
Tier 1 Leverage Ratio			7.46				7.60				7.46
Total Shareholders' Equity to Total Assets			7.28				7.40				7.24
Tangible Common Equity to Tangible Assets 4			7.11				7.23				7.07
Tangible Common Equity to Risk-Weighted Assets 4			12.28				12.52				12.80
Non-Financial Data
Full-Time Equivalent Employees			2,112				2,122				2,138
Branches			69				69				69
ATMs			385				382				377
1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
2 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
3 Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.
4 Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 “Reconciliation of Non-GAAP Financial Measures.”
Note: Total Capital Ratio was revised from 14.59% as of March 31, 2018.

Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures												Table 2
				March 31,				December 31,				March 31,
(dollars in thousands)				2019				2018				2018
Total Shareholders' Equity				$	1,269,690			$	1,268,200			$	1,241,193
Less: Goodwill					31,517				31,517				31,517
Tangible Common Equity				$	1,238,173			$	1,236,683			$	1,209,676
Total Assets				$	17,446,413			$	17,143,974			$	17,136,030
Less: Goodwill					31,517				31,517				31,517
Tangible Assets				$	17,414,896			$	17,112,457			$	17,104,513
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements				$	10,079,858			$	9,878,904			$	9,452,847
Total Shareholders' Equity to Total Assets					7.28	%			7.40	%			7.24	%
Tangible Common Equity to Tangible Assets (Non-GAAP)					7.11	%			7.23	%			7.07	%
Tier 1 Capital Ratio					12.75	%			13.07	%			13.37	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)					12.28	%			12.52	%			12.80	%
Note: Risk-Weighted Assets was revised from $9,451,647 as of March 31, 2018.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income										Table 3
		Three Months Ended
		March 31,				December 31,				March 31,
(dollars in thousands, except per share amounts)		2019				2018				2018
Interest Income
Interest and Fees on Loans and Leases		$	108,511			$	107,404			$	97,634
Income on Investment Securities
Available-for-Sale			13,432				13,043				12,141
Held-to-Maturity			21,921				21,482				21,296
Deposits			15				10				18
Funds Sold			1,444				727				757
Other			319				352				300
Total Interest Income			145,642				143,018				132,146
Interest Expense
Deposits			15,284				13,172				7,581
Securities Sold Under Agreements to Repurchase			4,571				4,671				4,564
Funds Purchased			157				440				53
Short-Term Borrowings			36				88				16
Other Debt			757				674				976
Total Interest Expense			20,805				19,045				13,190
Net Interest Income			124,837				123,973				118,956
Provision for Credit Losses			3,000				2,000				4,125
Net Interest Income After Provision for Credit Losses			121,837				121,973				114,831
Noninterest Income
Trust and Asset Management			10,761				10,558				11,181
Mortgage Banking			2,287				2,148				2,145
Service Charges on Deposit Accounts			7,364				7,562				7,129
Fees, Exchange, and Other Service Charges			14,208				14,576				14,333
Investment Securities Gains (Losses), Net			(835	)			(841	)			(666	)
Annuity and Insurance			2,578				1,409				1,206
Bank-Owned Life Insurance			1,710				1,941				1,842
Other			5,606				4,755				6,865
Total Noninterest Income			43,679				42,108				44,035
Noninterest Expense
Salaries and Benefits			56,586				54,856				54,422
Net Occupancy			7,594				8,918				8,534
Net Equipment			6,833				6,364				5,527
Data Processing			4,526				5,151				3,891
Professional Fees			2,453				2,467				2,773
FDIC Insurance			1,269				1,336				2,157
Other			13,796				16,819				17,080
Total Noninterest Expense			93,057				95,911				94,384
Income Before Provision for Income Taxes			72,459				68,170				64,482
Provision for Income Taxes			13,660				14,259				10,442
Net Income		$	58,799			$	53,911			$	54,040
Basic Earnings Per Share		$	1.44			$	1.30			$	1.29
Diluted Earnings Per Share		$	1.43			$	1.30			$	1.28
Dividends Declared Per Share		$	0.62			$	0.62			$	0.52
Basic Weighted Average Shares			40,938,318				41,325,456				42,038,573
Diluted Weighted Average Shares			41,213,453				41,601,649				42,358,425

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income										Table 4
			Three Months Ended
			March 31,			December 31,				March 31,
(dollars in thousands)			2019			2018				2018
Net Income			$	58,799		$	53,911			$	54,040
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities				6,919			11,169				(9,121	)
Defined Benefit Plans				246			(2,974	)			216
Other Comprehensive Income (Loss)				7,165			8,195				(8,905	)
Comprehensive Income			$	65,964		$	62,106			$	45,135

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
		March 31,				December 31,				March 31,
(dollars in thousands)		2019				2018				2018
Assets
Interest-Bearing Deposits in Other Banks		$	3,550			$	3,028			$	2,589
Funds Sold			243,867				198,860				387,766
Investment Securities
Available-for-Sale			1,859,256				2,007,942				2,184,187
Held-to-Maturity (Fair Value of $3,637,496; $3,413,994; and $3,711,149)			3,668,811				3,482,092				3,789,092
Loans Held for Sale			17,909				10,987				23,548
Loans and Leases			10,548,609				10,448,774				9,916,628
Allowance for Loan and Lease Losses			(106,023	)			(106,693	)			(107,938	)
Net Loans and Leases			10,442,586				10,342,081				9,808,690
Total Earning Assets			16,235,979				16,044,990				16,195,872
Cash and Due from Banks			293,871				324,081				174,871
Premises and Equipment, Net			159,344				151,837				137,201
Operating Lease Right-of-Use Assets			104,166				-				-
Accrued Interest Receivable			52,820				51,230				52,941
Foreclosed Real Estate			3,225				1,356				2,768
Mortgage Servicing Rights			24,149				24,310				24,493
Goodwill			31,517				31,517				31,517
Bank-Owned Life Insurance			285,155				283,771				280,537
Other Assets			256,187				230,882				235,830
Total Assets		$	17,446,413			$	17,143,974			$	17,136,030
Liabilities
Deposits
Noninterest-Bearing Demand		$	4,595,915			$	4,739,596			$	4,759,777
Interest-Bearing Demand			2,961,444				3,002,925				3,028,373
Savings			5,946,881				5,539,199				5,397,291
Time			1,763,070				1,745,522				1,771,692
Total Deposits			15,267,310				15,027,242				14,957,133
Short-Term Borrowings			-				199				-
Securities Sold Under Agreements to Repurchase			504,299				504,296				505,293
Other Debt			110,624				135,643				235,699
Operating Lease Liabilities			111,230				-				-
Retirement Benefits Payable			40,343				40,494				37,046
Accrued Interest Payable			8,474				8,253				8,229
Taxes Payable and Deferred Taxes			29,935				19,736				29,557
Other Liabilities			104,508				139,911				121,880
Total Liabilities			16,176,723				15,875,774				15,894,837
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: March 31, 2019 - 58,166,535 / 41,078,688;
December 31, 2018 - 58,063,689 / 41,499,898;
and March 31, 2018 - 58,051,646 / 42,314,414)			578				577				577
Capital Surplus			574,594				571,704				563,598
Accumulated Other Comprehensive Loss			(43,878	)			(51,043	)			(51,097	)
Retained Earnings			1,674,264				1,641,314				1,551,900
Treasury Stock, at Cost (Shares: March 31, 2019 - 17,087,847;
December 31, 2018 - 16,563,791; and March 31, 2018 - 15,737,232)			(935,868	)			(894,352	)			(823,785	)
Total Shareholders' Equity			1,269,690				1,268,200				1,241,193
Total Liabilities and Shareholders' Equity		$	17,446,413			$	17,143,974			$	17,136,030

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																							Table 6
											Accum.
											Other
											Compre-
											hensive
		Common Shares			Common			Capital			Income				Retained				Treasury
(dollars in thousands)		Outstanding			Stock			Surplus			(Loss)				Earnings				Stock				Total
Balance as of December 31, 2018		41,499,898			$	577		$	571,704		$	(51,043	)		$	1,641,314			$	(894,352	)		$	1,268,200
Net Income		-				-			-			-				58,799				-				58,799
Other Comprehensive Income		-				-			-			7,165				-				-				7,165
Share-Based Compensation		-				-			2,274			-				-				-				2,274
Common Stock Issued under Purchase and Equity Compensation Plans		131,529				1			616			-				(203	)			1,673				2,087
Common Stock Repurchased		(552,739	)			-			-			-				-				(43,189	)			(43,189	)
Cash Dividends Declared ($0.62 per share)		-				-			-			-				(25,646	)			-				(25,646	)
Balance as of March 31, 2019		41,078,688			$	578		$	574,594		$	(43,878	)		$	1,674,264			$	(935,868	)		$	1,269,690
Balance as of December 31, 2017		42,401,443			$	576		$	561,161		$	(34,715	)		$	1,512,218			$	(807,372	)		$	1,231,868
Net Income		-				-			-			-				54,040				-				54,040
Other Comprehensive Loss		-				-			-			(8,905	)			-				-				(8,905	)
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from AOCI		-				-			-			(7,477	)			7,477				-				-
Share-Based Compensation		-				-			1,867			-				-				-				1,867
Common Stock Issued under Purchase and Equity Compensation Plans		121,299				1			570			-				252				1,128				1,951
Common Stock Repurchased		(208,328	)			-			-			-				-				(17,541	)			(17,541	)
Cash Dividends Declared ($0.52 per share)		-				-			-			-				(22,087	)			-				(22,087	)
Balance as of March 31, 2018		42,314,414			$	577		$	563,598		$	(51,097	)		$	1,551,900			$	(823,785	)		$	1,241,193

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																											Table 7
			Three Months Ended									Three Months Ended									Three Months Ended
			March 31, 2019									December 31, 2018									March 31, 2018
			Average			Income/			Yield/			Average			Income/			Yield/			Average			Income/			Yield/
(dollars in millions)			Balance			Expense			Rate			Balance			Expense			Rate			Balance			Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks			$	3.0		$	-		2.05	%		$	3.3		$	-		1.21	%		$	3.0		$	-		2.34	%
Funds Sold				241.6			1.5		2.39				128.2			0.7		2.22				204.7			0.8		1.48
Investment Securities
Available-for-Sale
Taxable				1,595.8			11.5		2.90				1,480.5			10.0		2.70				1,595.1			8.9		2.23
Non-Taxable				279.1			2.4		3.45				556.4			3.8		2.77				604.7			4.1		2.74
Held-to-Maturity
Taxable				3,373.5			20.5		2.43				3,360.5			20.0		2.38				3,631.2			19.8		2.18
Non-Taxable				234.1			1.8		3.15				235.1			1.9		3.16				238.0			1.9		3.18
Total Investment Securities				5,482.5			36.2		2.65				5,632.5			35.7		2.53				6,069.0			34.7		2.29
Loans Held for Sale				12.4			0.1		4.35				12.1			0.2		4.63				14.1			0.1		3.76
Loans and Leases 1
Commercial and Industrial				1,357.8			15.3		4.57				1,351.1			14.3		4.21				1,280.9			11.8		3.73
Commercial Mortgage				2,310.4			24.9		4.36				2,256.0			24.2		4.25				2,096.4			20.6		3.99
Construction				150.4			1.9		5.08				179.8			2.2		4.79				189.4			2.1		4.45
Commercial Lease Financing				160.9			0.9		2.28				173.2			1.0		2.42				179.6			1.0		2.21
Residential Mortgage				3,680.2			35.5		3.86				3,615.8			35.1		3.88				3,478.2			33.3		3.83
Home Equity				1,690.0			16.1		3.87				1,652.4			15.7		3.78				1,595.4			14.6		3.70
Automobile				668.2			6.0		3.66				641.8			6.0		3.73				541.5			5.6		4.19
Other 2				449.4			7.9		7.13				450.0			8.8		7.72				442.4			8.6		7.91
Total Loans and Leases				10,467.3			108.5		4.18				10,320.1			107.3		4.14				9,803.8			97.6		4.02
Other				35.5			0.3		3.60				36.8			0.4		3.82				40.7			0.3		2.95
Total Earning Assets 3				16,242.3			146.6		3.64				16,133.0			144.3		3.56				16,135.3			133.5		3.33
Cash and Due from Banks				240.8									234.3									228.6
Other Assets				753.0									621.3									593.5
Total Assets			$	17,236.1								$	16,988.6								$	16,957.4
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand			$	2,939.9			1.5		0.20			$	2,888.3			1.5		0.20			$	2,978.1			0.8		0.10
Savings				5,760.8			6.7		0.47				5,494.5			4.5		0.32				5,366.3			2.1		0.16
Time				1,703.4			7.1		1.69				1,800.7			7.2		1.59				1,713.5			4.7		1.11
Total Interest-Bearing Deposits				10,404.1			15.3		0.60				10,183.5			13.2		0.51				10,057.9			7.6		0.31
Short-Term Borrowings				31.1			0.2		2.49				89.6			0.5		2.31				19.1			0.1		1.45
Securities Sold Under Agreements to Repurchase				504.3			4.6		3.63				504.3			4.7		3.62				505.3			4.5		3.61
Other Debt				120.0			0.7		2.55				145.2			0.7		1.85				257.1			1.0		1.54
Total Interest-Bearing Liabilities				11,059.5			20.8		0.76				10,922.6			19.1		0.69				10,839.4			13.2		0.49
Net Interest Income						$	125.8								$	125.2								$	120.3
Interest Rate Spread									2.88	%								2.87	%								2.84	%
Net Interest Margin									3.12	%								3.10	%								3.00	%
Noninterest-Bearing Demand Deposits				4,567.3									4,596.0									4,662.4
Other Liabilities				341.9									215.3									220.0
Shareholders' Equity				1,267.4									1,254.7									1,235.6
Total Liabilities and Shareholders' Equity			$	17,236.1								$	16,988.6								$	16,957.4
1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $981,000, $1,263,000, and $1,344,000 for the three months ended March 31, 2019, December 31, 2018, and March 31, 2018, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8a
		Three Months Ended March 31, 2019
		Compared to December 31, 2018
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	0.7			$	0.1			$	0.8
Investment Securities
Available-for-Sale
Taxable			0.8				0.7				1.5
Non-Taxable			(2.2	)			0.8				(1.4	)
Held-to-Maturity
Taxable			0.1				0.4				0.5
Non-Taxable			(0.1	)			-				(0.1	)
Total Investment Securities			(1.4	)			1.9				0.5
Loans Held for Sale			-				(0.1	)			(0.1	)
Loans and Leases
Commercial and Industrial			0.1				0.9				1.0
Commercial Mortgage			0.3				0.4				0.7
Construction			(0.4	)			0.1				(0.3	)
Commercial Lease Financing			(0.1	)			-				(0.1	)
Residential Mortgage			0.6				(0.2	)			0.4
Home Equity			0.2				0.2				0.4
Automobile			0.2				(0.2	)			-
Other 2			(0.1	)			(0.8	)			(0.9	)
Total Loans and Leases			0.8				0.4				1.2
Other			-				(0.1	)			(0.1	)
Total Change in Interest Income			0.1				2.2				2.3
Change in Interest Expense:
Interest-Bearing Deposits
Savings			0.2				2.0				2.2
Time			(0.5	)			0.4				(0.1	)
Total Interest-Bearing Deposits			(0.3	)			2.4				2.1
Short-Term Borrowings			(0.4	)			0.1				(0.3	)
Securities Sold Under Agreements to Repurchase			-				(0.1	)			(0.1	)
Other Debt			(0.1	)			0.1				-
Total Change in Interest Expense			(0.8	)			2.5				1.7
Change in Net Interest Income		$	0.9			$	(0.3	)		$	0.6
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8b
		Three Months Ended March 31, 2019
		Compared to March 31, 2018
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	0.2			$	0.5			$	0.7
Investment Securities
Available-for-Sale
Taxable			-				2.6				2.6
Non-Taxable			(2.6	)			0.9				(1.7	)
Held-to-Maturity
Taxable			(1.4	)			2.1				0.7
Non-Taxable			(0.1	)			-				(0.1	)
Total Investment Securities			(4.1	)			5.6				1.5
Loans and Leases
Commercial and Industrial			0.8				2.7				3.5
Commercial Mortgage			2.2				2.1				4.3
Construction			(0.5	)			0.3				(0.2	)
Commercial Lease Financing			(0.1	)			-				(0.1	)
Residential Mortgage			2.0				0.2				2.2
Home Equity			0.8				0.7				1.5
Automobile			1.2				(0.8	)			0.4
Other 2			0.2				(0.9	)			(0.7	)
Total Loans and Leases			6.6				4.3				10.9
Other			(0.2	)			0.2				-
Total Change in Interest Income			2.5				10.6				13.1
Change in Interest Expense:
Interest-Bearing Deposits
Demand			-				0.7				0.7
Savings			0.2				4.4				4.6
Time			-				2.4				2.4
Total Interest-Bearing Deposits			0.2				7.5				7.7
Short-Term Borrowings			0.1				-				0.1
Securities Sold Under Agreements to Repurchase			-				0.1				0.1
Other Debt			(0.7	)			0.4				(0.3	)
Total Change in Interest Expense			(0.4	)			8.0				7.6
Change in Net Interest Income		$	2.9			$	2.6			$	5.5
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits								Table 9
		Three Months Ended
		March 31,			December 31,			March 31,
(dollars in thousands)		2019			2018			2018
Salaries		$	32,480		$	33,603		$	32,704
Incentive Compensation			5,904			5,715			5,178
Share-Based Compensation			3,079			1,417			2,081
Commission Expense			930			1,158			954
Retirement and Other Benefits			5,107			4,369			4,841
Payroll Taxes			4,247			2,277			4,172
Medical, Dental, and Life Insurance			4,465			5,237			3,461
Separation Expense			374			1,080			1,031
Total Salaries and Benefits		$	56,586		$	54,856		$	54,422

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances															Table 10
			March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands)			2019			2018			2018			2018			2018
Commercial
Commercial and Industrial			$	1,331,345		$	1,331,149		$	1,314,609		$	1,282,967		$	1,329,096
Commercial Mortgage				2,381,213			2,302,356			2,237,020			2,169,357			2,097,339
Construction				132,775			170,061			176,447			185,350			186,530
Lease Financing				154,919			176,226			172,232			178,598			179,771
Total Commercial				4,000,252			3,979,792			3,900,308			3,816,272			3,792,736
Consumer
Residential Mortgage				3,702,553			3,673,796			3,596,627			3,548,444			3,505,239
Home Equity				1,698,666			1,681,442			1,625,208			1,622,314			1,601,698
Automobile				676,730			658,133			625,086			592,705			558,468
Other 1				470,408			455,611			483,833			473,588			458,487
Total Consumer				6,548,357			6,468,982			6,330,754			6,237,051			6,123,892
Total Loans and Leases			$	10,548,609		$	10,448,774		$	10,231,062		$	10,053,323		$	9,916,628
Deposits
			March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands)			2019			2018			2018			2018			2018
Consumer			$	7,944,793		$	7,726,731		$	7,627,527		$	7,672,435		$	7,665,926
Commercial				6,162,042			6,098,186			5,967,343			5,921,414			5,897,194
Public and Other				1,160,475			1,202,325			1,248,465			1,349,509			1,394,013
Total Deposits			$	15,267,310		$	15,027,242		$	14,843,335		$	14,943,358		$	14,957,133
1 Comprised of other revolving credit, installment, and lease financing.

Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More																				Table 11
				March 31,				December 31,				September 30,				June 30,				March 31,
(dollars in thousands)				2019				2018				2018				2018				2018
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial				$	393			$	542			$	1,205			$	917			$	986
Commercial Mortgage					5,911				2,040				652				659				1,367
Total Commercial					6,304				2,582				1,857				1,576				2,353
Consumer
Residential Mortgage					5,599				5,321				6,359				6,722				6,725
Home Equity					2,797				3,671				3,673				3,933				3,890
Total Consumer					8,396				8,992				10,032				10,655				10,615
Total Non-Accrual Loans and Leases					14,700				11,574				11,889				12,231				12,968
Foreclosed Real Estate					3,225				1,356				1,909				2,926				2,768
Total Non-Performing Assets				$	17,925			$	12,930			$	13,798			$	15,157			$	15,736
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial				$	66			$	10			$	-			$	2			$	-
Commercial Mortgage					-				-				-				5,680				-
Total Commercial					66				10				-				5,682				-
Consumer
Residential Mortgage				$	903			$	2,446			$	2,426			$	2,281			$	2,927
Home Equity					3,381				2,684				3,112				3,016				3,013
Automobile					734				513				829				674				333
Other 1					1,033				914				1,727				1,660				1,895
Total Consumer					6,051				6,557				8,094				7,631				8,168
Total Accruing Loans and Leases Past Due 90 Days or More				$	6,117			$	6,567			$	8,094			$	13,313			$	8,168
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More				$	48,571			$	48,731			$	49,462			$	50,212			$	56,743
Total Loans and Leases				$	10,548,609			$	10,448,774			$	10,231,062			$	10,053,323			$	9,916,628
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases					0.14	%			0.11	%			0.12	%			0.12	%			0.13	%
Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate					0.17	%			0.12	%			0.13	%			0.15	%			0.16	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans
and Leases and Commercial Foreclosed Real Estate					0.16	%			0.06	%			0.05	%			0.04	%			0.06	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate					0.18	%			0.16	%			0.19	%			0.22	%			0.22	%
Ratio of Non-Performing Assets and Accruing Loans and Leases
Past Due 90 Days or More to Total Loans and Leases
and Foreclosed Real Estate					0.23	%			0.19	%			0.21	%			0.28	%			0.24	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter				$	12,930			$	13,798			$	15,157			$	15,736			$	16,120
Additions					8,217				4,509				2,030				1,949				2,332
Reductions
Payments					(989	)			(3,759	)			(415	)			(1,847	)			(1,251	)
Return to Accrual Status					(316	)			(605	)			(1,420	)			(126	)			(1,270	)
Sales of Foreclosed Real Estate					-				(653	)			(1,301	)			(421	)			-
Charge-offs/Write-downs					(1,917	)			(360	)			(253	)			(134	)			(195	)
Total Reductions					(3,222	)			(5,377	)			(3,389	)			(2,528	)			(2,716	)
Balance at End of Quarter				$	17,925			$	12,930			$	13,798			$	15,157			$	15,736
1 Comprised of other revolving credit, installment, and lease financing.

Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses												Table 12
				Three Months Ended
				March 31,				December 31,				March 31,
(dollars in thousands)				2019				2018				2018
Balance at Beginning of Period				$	113,515			$	115,512			$	114,168
Loans and Leases Charged-Off
Commercial
Commercial and Industrial					(370	)			(365	)			(206	)
Commercial Mortgage					(1,616	)			-				-
Consumer
Residential Mortgage					(4	)			(1	)			(97	)
Home Equity					(295	)			(406	)			(91	)
Automobile					(1,753	)			(2,335	)			(2,254	)
Other 1					(2,790	)			(3,781	)			(3,340	)
Total Loans and Leases Charged-Off					(6,828	)			(6,888	)			(5,988	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial					501				803				328
Consumer
Residential Mortgage					484				112				220
Home Equity					588				367				625
Automobile					881				949				599
Other 1					704				660				683
Total Recoveries on Loans and Leases Previously Charged-Off					3,158				2,891				2,455
Net Loans and Leases Charged-Off					(3,670	)			(3,997	)			(3,533	)
Provision for Credit Losses					3,000				2,000				4,125
Provision for Unfunded Commitments					-				-				-
Balance at End of Period 2				$	112,845			$	113,515			$	114,760
Components
Allowance for Loan and Lease Losses				$	106,023			$	106,693			$	107,938
Reserve for Unfunded Commitments					6,822				6,822				6,822
Total Reserve for Credit Losses				$	112,845			$	113,515			$	114,760
Average Loans and Leases Outstanding				$	10,467,321			$	10,320,051			$	9,803,753
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)					0.14	%			0.15	%			0.15	%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding					1.01	%			1.02	%			1.09	%
1 Comprised of other revolving credit, installment, and lease financing.
2 Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information																		Table 13
										Investment
										Services and
		Retail				Commercial				Private				Treasury				Consolidated
(dollars in thousands)		Banking				Banking				Banking				and Other				Total
Three Months Ended March 31, 2019
Net Interest Income		$	66,154			$	47,290			$	10,198			$	1,195			$	124,837
Provision for Credit Losses			2,241				1,446				(17	)			(670	)			3,000
Net Interest Income After Provision for Credit Losses			63,913				45,844				10,215				1,865				121,837
Noninterest Income			21,233				7,061				13,245				2,140				43,679
Noninterest Expense			(52,524	)			(20,955	)			(16,903	)			(2,675	)			(93,057	)
Income Before Provision for Income Taxes			32,622				31,950				6,557				1,330				72,459
Provision for Income Taxes			(8,105	)			(6,002	)			(1,729	)			2,176				(13,660	)
Net Income		$	24,517			$	25,948			$	4,828			$	3,506			$	58,799
Total Assets as of March 31, 2019		$	6,454,127			$	4,004,176			$	341,979			$	6,646,131			$	17,446,413
Three Months Ended March 31, 2018
Net Interest Income		$	64,397			$	42,898			$	9,887			$	1,774			$	118,956
Provision for Credit Losses			3,743				(151	)			(60	)			593				4,125
Net Interest Income After Provision for Credit Losses			60,654				43,049				9,947				1,181				114,831
Noninterest Income			19,253				5,642				13,670				5,470				44,035
Noninterest Expense			(54,599	)			(20,332	)			(16,207	)			(3,246	)			(94,384	)
Income Before Provision for Income Taxes			25,308				28,359				7,410				3,405				64,482
Provision for Income Taxes			(6,291	)			(6,824	)			(1,954	)			4,627				(10,442	)
Net Income		$	19,017			$	21,535			$	5,456			$	8,032			$	54,040
Total Assets as of March 31, 2018		$	6,041,271			$	3,771,678			$	332,454			$	6,990,627			$	17,136,030

Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data																						Table 14
		Three Months Ended
		March 31,					December 31,					September 30,					June 30,					March 31,
(dollars in thousands, except per share amounts)		2019					2018					2018					2018					2018
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases		$	108,511				$	107,404				$	104,248				$	101,311				$	97,634
Income on Investment Securities
Available-for-Sale			13,432					13,043					12,588					12,380					12,141
Held-to-Maturity			21,921					21,482					20,821					20,711					21,296
Deposits			15					10					10					(4	)				18
Funds Sold			1,444					727					1,393					846					757
Other			319					352					364					341					300
Total Interest Income			145,642					143,018					139,424					135,585					132,146
Interest Expense
Deposits			15,284					13,172					10,931					9,459					7,581
Securities Sold Under Agreements to Repurchase			4,571					4,671					4,667					4,617					4,564
Funds Purchased			157					440					33					83					53
Short-Term Borrowings			36					88					28					13					16
Other Debt			757					674					838					917					976
Total Interest Expense			20,805					19,045					16,497					15,089					13,190
Net Interest Income			124,837					123,973					122,927					120,496					118,956
Provision for Credit Losses			3,000					2,000					3,800					3,500					4,125
Net Interest Income After Provision for Credit Losses			121,837					121,973					119,127					116,996					114,831
Noninterest Income
Trust and Asset Management			10,761					10,558					10,782					11,356					11,181
Mortgage Banking			2,287					2,148					1,965					2,179					2,145
Service Charges on Deposit Accounts			7,364					7,562					7,255					6,865					7,129
Fees, Exchange, and Other Service Charges			14,208					14,576					14,173					14,400					14,333
Investment Securities Gains (Losses), Net			(835	)				(841	)				(729	)				(1,702	)				(666	)
Annuity and Insurance			2,578					1,409					1,360					1,847					1,206
Bank-Owned Life Insurance			1,710					1,941					1,620					1,796					1,842
Other			5,606					4,755					5,056					4,557					6,865
Total Noninterest Income			43,679					42,108					41,482					41,298					44,035
Noninterest Expense
Salaries and Benefits			56,586					54,856					51,782					52,148					54,422
Net Occupancy			7,594					8,918					8,702					8,588					8,534
Net Equipment			6,833					6,364					6,116					5,845					5,527
Data Processing			4,526					5,151					4,241					4,563					3,891
Professional Fees			2,453					2,467					2,206					2,546					2,773
FDIC Insurance			1,269					1,336					2,057					2,182					2,157
Other			13,796					16,819					15,434					14,919					17,080
Total Noninterest Expense			93,057					95,911					90,538					90,791					94,384
Income Before Provision for Income Taxes			72,459					68,170					70,071					67,503					64,482
Provision for Income Taxes			13,660					14,259					13,138					12,785					10,442
Net Income		$	58,799				$	53,911				$	56,933				$	54,718				$	54,040
Basic Earnings Per Share		$	1.44				$	1.30				$	1.37				$	1.31				$	1.29
Diluted Earnings Per Share		$	1.43				$	1.30				$	1.36				$	1.30				$	1.28
Balance Sheet Totals
Loans and Leases		$	10,548,609				$	10,448,774				$	10,231,062				$	10,053,323				$	9,916,628
Total Assets			17,446,413					17,143,974					16,991,734					17,124,162					17,136,030
Total Deposits			15,267,310					15,027,242					14,843,335					14,943,358					14,957,133
Total Shareholders' Equity			1,269,690					1,268,200					1,253,327					1,247,717					1,241,193
Performance Ratios
Return on Average Assets			1.38		%			1.26		%			1.33		%			1.30		%			1.29		%
Return on Average Shareholders' Equity			18.81					17.05					18.06					17.68					17.74
Efficiency Ratio 1			55.22					57.75					55.07					56.12					57.91
Net Interest Margin 2			3.12					3.10					3.07					3.04					3.00
1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
2 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.

Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends																							Table 15
		Two Months Ended							Year Ended
($ in millions; jobs in thousands)		February 28, 2019							December 31, 2018									December 31, 2017
Hawaii Economic Trends
State General Fund Revenues 1		$	1,200.3		(2.9	)	%		$	6,933.1				6.9		%		$	6,485.0			4.3	%
General Excise and Use Tax Revenue 1		$	640.5		(5.2	)	%		$	3,426.5				2.3		%		$	3,349.8			4.5	%
Jobs 2			656.5							660.0									664.5
														March 31,				December 31,
(spot rates)														2019				2018				2017
Unemployment 3
Statewide, seasonally adjusted														2.8		%			2.5	%		2.1	%
Oahu														2.7					2.2			1.7
Island of Hawaii														3.7					2.9			2.0
Maui														2.8					2.3			1.8
Kauai														3.0					2.3			1.7
									March 31,					December 31,
(percentage change, except months of inventory)									2019					2018				2017				2016
Housing Trends (Single Family Oahu) 4
Median Home Price										2.0		%		4.6		%			2.7	%		5.0	%
Home Sales Volume (units)										(5.7	)	%		(7.7	)	%			6.3	%		6.5	%
Months of Inventory										3.4				2.8					2.1			2.5
									Monthly Visitor Arrivals,									Percentage Change
(in thousands)									Not Seasonally Adjusted									from Previous Year
Tourism 5
February 28, 2019														782.6								0.5
January 31, 2019														820.6								3.0
December 31, 2018														910.1								3.4
November 30, 2018														782.0								4.3
October 31, 2018														770.4								4.4
September 30, 2018														724.9								3.5
August 31, 2018														845.1								3.2
July 31, 2018														939.4								5.3
June 30, 2018														897.1								7.3
May 31, 2018														804.1								7.0
April 30, 2018														803.0								6.6
March 31, 2018														903.6								12.5
February 28, 2018														778.6								10.3
January 31, 2018														796.5								5.4
December 31, 2017														880.4								6.3
November 30, 2017														749.5								7.5
October 31, 2017														737.6								2.9
September 30, 2017														700.5								4.9
August 31, 2017														818.6								4.8
July 31, 2017														891.9								6.8
June 30, 2017														835.9								4.5
May 31, 2017														751.2								4.5
April 30, 2017														753.0								7.5
March 31, 2017														802.8								2.1
February 28, 2017														706.1								2.5
January 31, 2017														756.0								4.9
1 Source: Hawaii Department of Business, Economic Development & Tourism
2 Source: U. S. Bureau of Labor Statistics
3 Source: Hawaii Department of Labor and Industrial Relations, County jobs data not seasonally adjusted.
4 Source: Honolulu Board of REALTORS
5 Source: Hawaii Tourism Authority

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