Bank of Hawaii Corporation 2019 Financial Results

Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $5.56 for the full year of 2019, an increase of 6.3 percent from diluted earnings per share of $5.23 in 2018. Net income for the year was $225.9 million, up $6.3 million or 2.9 percent from net income of $219.6 million in the previous year. The return on average assets for the full year of 2019 was 1.29 percent unchanged from 1.29 percent in 2018. The return on average equity for the full year of 2019 was 17.65 percent compared with 17.63 percent in 2018. The efficiency ratio for the full year of 2019 improved to 55.68 percent compared with 56.71 percent in 2018.

“Bank of Hawaii finished 2019 with strong financial performance and made significant progress on our strategic initiatives,” said Peter Ho, Chairman, President, and CEO. “Our loan balances grew 5.2 percent in 2019 and our deposit balances grew 5.0 percent compared with 2018. Our asset quality, capital and liquidity all remain strong. During the fourth quarter we continued to reduce our leveraged lease exposure with the early buyout of a lease which reduced our loan balances by $42.7 million.”

Diluted earnings per share were $1.45 for the fourth quarter of 2019, an increase from $1.29 in the third quarter of 2019 and $1.30 in the fourth quarter of 2018. Net income for the fourth quarter of 2019 was $58.1 million, up from $52.1 million in the previous quarter and $53.9 million in the same quarter last year. The return on average assets for the fourth quarter of 2019 was 1.29 percent compared with 1.17 percent in the third quarter of 2019 and 1.26 percent in the fourth quarter last year. The return on average equity for the fourth quarter of 2019 was 17.84 percent compared with 16.02 percent in the third quarter of 2019 and 17.05 percent in the fourth quarter last year. The efficiency ratio for the fourth quarter of 2019 was 54.26 percent compared with 58.55 percent in the previous quarter and 57.75 percent in the same quarter last year.

Financial Highlights

Net interest income, on a taxable-equivalent basis, was $499.9 million for the full year of 2019, an increase of $8.4 million from net interest income of $491.5 million in 2018. Net interest income, on a taxable-equivalent basis, for the fourth quarter of 2019 was $124.2 million, a decrease of $1.0 million compared with net interest income of $125.2 million in the third quarter of 2019 and the fourth quarter last year. Analyses of changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin for the full year of 2019 was 3.03 percent, a decrease of 2 basis points from the net interest margin of 3.05 percent in 2018. The net interest margin was 2.95 percent in the fourth quarter of 2019, a decrease of 6 basis points from the previous quarter and 15 basis points from the same quarter last year.

The provision for credit losses for the full year of 2019 was $16.0 million compared with a provision for credit losses of $13.4 million in 2018. Results for the fourth quarter of 2019 included a provision for credit losses of $4.8 million compared with $4.3 million in the previous quarter and $2.0 million in the same quarter last year.

Noninterest income for the full year of 2019 was $183.3 million, an increase of $14.4 million or 8.5 percent compared with noninterest income of $168.9 million in 2018. The increase from the previous year was primarily due to growth in mortgage banking income, higher gains on sales of leased assets, increased customer derivative activity, and higher service charges on deposits that were partially offset by a decline in credit card fees resulting from the sale of the credit card portfolio in the fourth quarter of 2018. Noninterest income was $47.7 million in the fourth quarter of 2019 compared with noninterest income of $46.5 million in the third quarter of 2019 and $42.1 million in the fourth quarter of 2018. Noninterest income in the fourth quarter of 2019 included a gain of $3.8 million related to the early buyout of a leveraged lease that was partially offset by a reduction in mortgage banking income and customer derivative activity. Noninterest income during the third quarter of 2019 included a negative adjustment of $0.5 million related to a change in the Visa Class B conversion. There were no significant items in noninterest income during the fourth quarter of 2018.

Noninterest expense for the full year of 2019 was $379.2 million, an increase of $7.6 million or 2.0 percent compared with noninterest expense of $371.6 million in 2018. The increase from the previous year was primarily due to increased depreciation and equipment costs related to the Company’s strategic initiatives, higher salaries and benefits, and increased legal costs that were partially offset by a reduction in credit card expenses due to the sale of the portfolio. Noninterest expense was $93.1 million in the fourth quarter of 2019 compared with noninterest expense of $100.3 million in the third quarter of 2019 and $95.9 million in the fourth quarter of 2018. There were no significant items in noninterest expense during the fourth quarter of 2019. Noninterest expense during the third quarter of 2019 included a $6.0 million increase in the legal reserve. 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. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the full year of 2019 was 20.96 percent compared with the effective tax rate of 18.73 percent for 2018. The effective tax rate for the fourth quarter of 2019 was 21.15 percent compared with 22.08 percent in the previous quarter and 20.92 percent during the same quarter last year.

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

Asset Quality

The Company’s strong overall asset quality continued to remain stable during the fourth quarter of 2019. Total non-performing assets were $20.1 million at December 31, 2019, down from $21.6 million at September 30, 2019 and up from $12.9 million at December 31, 2018. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.18 percent at December 31, 2019 compared with 0.20 percent at September 30, 2019 and 0.12 percent at December 31, 2018.

Accruing loans and leases past due 90 days or more were $8.4 million at December 31, 2019 compared with $6.1 million at September 30, 2019 and $6.6 million at December 31, 2018. Restructured loans and leases not included in non-accrual loans or accruing loans past due 90 days or more were $63.1 million at December 31, 2019 compared with $46.2 million at September 30, 2019 and $48.7 million at December 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 charge-offs for the full year of 2019 were $12.7 million or 0.12 percent of total average loans and leases compared with net charge-offs of $14.1 million or 0.14 percent of total average loans and leases in 2018. Net charge-offs during the fourth quarter of 2019 were $3.7 million or 0.13 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $6.2 million partially offset by recoveries of $2.6 million. Net charge-offs during the third quarter of 2019 were $3.0 million or 0.11 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $5.8 million and recoveries of $2.8 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 charge-offs of $6.9 million and recoveries of $2.9 million.

The allowance for loan and lease losses was $110.0 million at December 31, 2019, an increase from $108.9 million at September 30, 2019 and $106.7 million at December 31, 2018. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.00 percent at December 31, 2019, unchanged from September 30, 2019 and down 2 basis points from December 31, 2018. The total reserve for unfunded commitments of $6.8 million at December 31, 2019 was unchanged from the prior quarter and the same quarter last year. Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets were $18.10 billion at December 31, 2019, an increase of 2.4 percent from total assets of $17.67 billion at September 30, 2019 and an increase of 5.6 percent from total assets of $17.14 billion at December 31, 2018. Average total assets were $17.54 billion during the full year of 2019, an increase of 3.3 percent from average total assets of $16.97 billion during 2018.

The investment securities portfolio was $5.66 billion at December 31, 2019, an increase of 2.2 percent from total securities of $5.54 billion at September 30, 2019 and an increase of 3.1 percent from total securities of $5.49 billion at December 31, 2018. The investment securities portfolio remains largely comprised of securities issued by U.S. government agencies and included $2.62 billion in securities available for sale and $3.04 billion in securities held to maturity at December 31, 2019.

Total loans and leases were $10.99 billion at December 31, 2019, an increase of 1.0 percent from total loans and leases of $10.88 billion at September 30, 2019 and 5.2 percent from total loans and leases of $10.45 billion at December 31, 2018. Adjusted for the previously mentioned early buyout of a leveraged lease, total loans increased 1.4 percent from the previous quarter and 5.6 percent from the same quarter last year.

The commercial portfolio grew to $4.21 billion at the end of the fourth quarter of 2019, an increase of 1.4 percent from commercial loans of $4.16 billion at the end of the third quarter of 2019 and 5.9 percent from commercial loans of $3.98 billion at the end of the fourth quarter last year. Adjusted for the previously mentioned early buyout of a leveraged lease, commercial loans increased 2.4 percent from the previous quarter and 7.0 percent from the same quarter last year. Consumer loans grew to $6.78 billion at December 31, 2019, an increase of 0.8 percent from consumer loans of $6.72 billion at the end of the third quarter of 2019 and 4.8 percent from consumer loans of $6.47 billion at the end of the fourth quarter last year. Average total loans and leases during the full year of 2019 were $10.69 billion, an increase of 6.4 percent from average loans and leases of $10.04 billion during 2018. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $15.78 billion at December 31, 2019, an increase of 2.9 percent from total deposits of $15.34 billion at September 30, 2019 and an increase of 5.0 percent from total deposits of $15.03 billion at December 31, 2018. Consumer deposits increased to $8.12 billion at December 31, 2019, an increase of 2.9 percent from consumer deposits of $7.89 billion at the end of the third quarter of 2019 and an increase of 5.1 percent from $7.73 billion at the end of the fourth quarter last year. Commercial deposits increased to $6.32 billion at the end of the fourth quarter of 2019, an increase of 2.8 percent from $6.15 billion at the end of the third quarter of 2019 and an increase of 3.7 percent from $6.10 billion at the end of the fourth quarter last year. Other deposits, including public funds, were $1.34 billion at December 31, 2019, an increase of 3.7 percent from total other deposits of $1.29 billion at September 30, 2019 and an increase of 11.6 percent from $1.20 billion at December 31, 2018. Average total deposits during the full year of 2019 were $15.23 billion, an increase of 3.2 percent compared with average total deposits of $14.76 billion during 2018. Deposit balances are summarized in Tables 7a, 7b, and 10.

During the fourth quarter of 2019, the Company repurchased 336.2 thousand shares of common stock at a total cost of $30.0 million under its share repurchase program. The average cost was $89.11 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through December 31, 2019, the Company has repurchased 56.9 million shares and returned nearly $2.3 billion to shareholders at an average cost of $40.38 per share. From January 2 through January 24, 2020 the Company repurchased an additional 71.5 thousand shares of common stock at an average cost of $93.50 per share repurchased. The Company’s Board of Directors increased the authorization under the share repurchase program by an additional $100.0 million. Remaining buyback authority under the share repurchase program was $120.4 million at January 24, 2020.

Total shareholders’ equity was $1.29 billion at December 31, 2019, down slightly from September 30, 2019, and up from $1.27 billion at December 31, 2018. The Tier 1 Capital Ratio was 12.18 percent at December 31, 2019 compared with 12.33 percent at September 30, 2019 and 13.07 percent at December 31, 2018. The Tier 1 Leverage Ratio at December 31, 2019 was 7.25 percent compared with 7.32 percent at September 30, 2019 and 7.60 percent at December 31, 2018.

The Company’s Board of Directors declared a quarterly cash dividend of $0.67 per share on the Company’s outstanding shares. The dividend will be payable on March 13, 2020 to shareholders of record at the close of business on February 28, 2020.

Hawaii Economy

General economic conditions in Hawaii remained stable during 2019 due to low interest rates, a relatively healthy construction sector and growing visitor arrivals. For the first eleven months of 2019 total visitor arrivals increased 5.4 percent and visitor spending increased 0.5 percent compared to the same period in 2018. Total visitor days rose 2.7 percent compared to the first eleven months of 2018.

The statewide seasonally-adjusted unemployment rate in Hawaii continued to remain low at 2.6 percent in December 2019 compared with 3.5 percent nationally.

Real estate prices on Oahu remained steady during 2019 with a modest decline in total annual sales and stable median prices. For the full year of 2019, the median sales price of a single-family home on Oahu decreased 0.1 percent and the median price of a condominium on Oahu increased 1.2 percent compared with the same period in 2018. The volume of single-family home sales on Oahu increased 3.9 percent and the volume of condominium sales on Oahu decreased 4.8 percent in 2019 compared with 2018. As of December 31, 2019, months of inventory of single-family homes and condominiums on Oahu were 2.5 months and 3.4 months, respectively. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its 2019 financial results today at 8:00 a.m. Hawaii Time (1:00 p.m. Eastern 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 11:00 a.m. Hawaii Time on Monday, January 27, 2020. The replay number is 1 [phone] in the United States and Canada and 1 [phone] from other international locations. Enter the conference ID 1787817 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 do not promise 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 web site, www.boh.com.

Bank of Hawaii Corporation and Subsidiaries
Financial Highlights																		Table 1
		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,
(dollars in thousands, except per share amounts)		2019				2019				2018				2019				2018
For the Period:
Operating Results
Net Interest Income		$	123,885			$	124,896			$	123,973			$	497,715			$	486,352
Provision for Credit Losses			4,750				4,250				2,000				16,000				13,425
Total Noninterest Income			47,702				46,507				42,108				183,338				168,923
Total Noninterest Expense			93,096				100,349				95,911				379,227				371,624
Net Income			58,143				52,052				53,911				225,913				219,602
Basic Earnings Per Share			1.46				1.30				1.30				5.59				5.26
Diluted Earnings Per Share			1.45				1.29				1.30				5.56				5.23
Dividends Declared Per Share			0.67				0.65				0.62				2.59				2.34
Performance Ratios
Return on Average Assets			1.29	%			1.17	%			1.26	%			1.29	%			1.29	%
Return on Average Shareholders' Equity			17.84				16.02				17.05				17.65				17.63
Efficiency Ratio 1			54.26				58.55				57.75				55.68				56.71
Net Interest Margin 2			2.95				3.01				3.10				3.03				3.05
Dividend Payout Ratio 3			45.89				50.00				47.69				46.33				44.49
Average Shareholders' Equity to Average Assets			7.26				7.32				7.39				7.30				7.34
Average Balances
Average Loans and Leases		$	10,878,672			$	10,770,720			$	10,320,051			$	10,688,424			$	10,043,661
Average Assets			17,821,004				17,605,394				16,988,550				17,537,570				16,970,992
Average Deposits			15,441,097				15,330,691				14,779,511				15,228,066				14,757,724
Average Shareholders' Equity			1,292,930				1,289,417				1,254,704				1,280,082				1,245,672
Per Share of Common Stock
Book Value		$	32.14			$	32.00			$	30.56			$	32.14			$	30.56
Tangible Book Value			31.35				31.22				29.80				31.35				29.80
Market Value
Closing			95.16				85.93				67.32				95.16				67.32
High			95.68				88.20				82.80				95.68				89.09
Low			81.29				79.13				63.64				66.54				63.64
										December 31,				September 30,				December 31,
										2019				2019				2018
As of Period End:
Balance Sheet Totals
Loans and Leases										$	10,990,892			$	10,881,298			$	10,448,774
Total Assets											18,095,496				17,672,140				17,143,974
Total Deposits											15,784,482				15,340,752				15,027,242
Other Debt											85,565				110,585				135,643
Total Shareholders' Equity											1,286,832				1,291,490				1,268,200
Asset Quality
Non-Performing Assets										$	20,117			$	21,645			$	12,930
Allowance for Loan and Lease Losses											110,027				108,936				106,693
Allowance to Loans and Leases Outstanding											1.00	%			1.00	%			1.02	%
Capital Ratios
Common Equity Tier 1 Capital Ratio											12.18	%			12.33	%			13.07	%
Tier 1 Capital Ratio											12.18				12.33				13.07
Total Capital Ratio											13.28				13.44				14.21
Tier 1 Leverage Ratio											7.25				7.32				7.60
Total Shareholders' Equity to Total Assets											7.11				7.31				7.40
Tangible Common Equity to Tangible Assets 4											6.95				7.14				7.23
Tangible Common Equity to Risk-Weighted Assets 4											11.85				12.10				12.52
Non-Financial Data
Full-Time Equivalent Employees											2,124				2,124				2,122
Branches											68				67				69
ATMs											387				379				382
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.”

Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures								Table 2
		December 31,			September 30,			December 31,
(dollars in thousands)		2019			2019			2018
Total Shareholders' Equity		$	1,286,832		$	1,291,490		$	1,268,200
Less: Goodwill			31,517			31,517			31,517
Tangible Common Equity		$	1,255,315		$	1,259,973		$	1,236,683
Total Assets		$	18,095,496		$	17,672,140		$	17,143,974
Less: Goodwill			31,517			31,517			31,517
Tangible Assets		$	18,063,979		$	17,640,623		$	17,112,457
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements		$	10,589,061		$	10,416,560		$	9,878,904
Total Shareholders' Equity to Total Assets			7.11%			7.31%			7.40%
Tangible Common Equity to Tangible Assets (Non-GAAP)			6.95%			7.14%			7.23%
Tier 1 Capital Ratio			12.18%			12.33%			13.07%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)			11.85%			12.10%			12.52%

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income																		Table 3
		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,
(dollars in thousands, except per share amounts)		2019				2019				2018				2019				2018
Interest Income
Interest and Fees on Loans and Leases		$	109,223			$	110,877			$	107,404			$	439,012			$	410,597
Income on Investment Securities
Available-for-Sale			16,158				17,512				13,043				62,174				50,152
Held-to-Maturity			18,750				18,796				21,482				81,616				84,310
Deposits			8				9				10				41				34
Funds Sold			723				656				727				3,553				3,723
Other			239				233				352				1,001				1,357
Total Interest Income			145,101				148,083				143,018				587,397				550,173
Interest Expense
Deposits			16,407				18,055				13,172				68,374				41,143
Securities Sold Under Agreements to Repurchase			4,071				4,257				4,671				17,522				18,519
Funds Purchased			25				146				440				840				609
Short-Term Borrowings			-				1				88				38				145
Other Debt			713				728				674				2,908				3,405
Total Interest Expense			21,216				23,187				19,045				89,682				63,821
Net Interest Income			123,885				124,896				123,973				497,715				486,352
Provision for Credit Losses			4,750				4,250				2,000				16,000				13,425
Net Interest Income After Provision for Credit Losses			119,135				120,646				121,973				481,715				472,927
Noninterest Income
Trust and Asset Management			11,157				10,930				10,558				44,233				43,877
Mortgage Banking			3,199				4,864				2,148				13,686				8,437
Service Charges on Deposit Accounts			7,835				7,592				7,562				30,074				28,811
Fees, Exchange, and Other Service Charges			14,533				14,900				14,576				57,893				57,482
Investment Securities Gains (Losses), Net			(906	)			(1,469	)			(841	)			(3,986	)			(3,938	)
Annuity and Insurance			1,272				1,278				1,409				6,934				5,822
Bank-Owned Life Insurance			1,879				1,647				1,941				7,015				7,199
Other			8,733				6,765				4,755				27,489				21,233
Total Noninterest Income			47,702				46,507				42,108				183,338				168,923
Noninterest Expense
Salaries and Benefits			51,664				54,345				54,856				216,106				213,208
Net Occupancy			8,824				8,803				8,918				33,800				34,742
Net Equipment			7,930				7,637				6,364				29,295				23,852
Data Processing			4,828				4,676				5,151				18,757				17,846
Professional Fees			3,257				2,184				2,467				10,071				9,992
FDIC Insurance			1,376				1,257				1,336				5,192				7,732
Other			15,217				21,447				16,819				66,006				64,252
Total Noninterest Expense			93,096				100,349				95,911				379,227				371,624
Income Before Provision for Income Taxes			73,741				66,804				68,170				285,826				270,226
Provision for Income Taxes			15,598				14,752				14,259				59,913				50,624
Net Income		$	58,143			$	52,052			$	53,911			$	225,913			$	219,602
Basic Earnings Per Share		$	1.46			$	1.30			$	1.30			$	5.59			$	5.26
Diluted Earnings Per Share		$	1.45			$	1.29			$	1.30			$	5.56			$	5.23
Dividends Declared Per Share		$	0.67			$	0.65			$	0.62			$	2.59			$	2.34
Basic Weighted Average Shares			39,880,619				40,190,508				41,325,456				40,384,328				41,714,770
Diluted Weighted Average Shares			40,179,016				40,450,742				41,601,649				40,649,570				41,999,399

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income																	Table 4
		Three Months Ended											Year Ended
		December 31,				September 30,			December 31,				December 31,
(dollars in thousands)		2019				2019			2018				2019				2018
Net Income		$	58,143			$	52,052		$	53,911			$	225,913			$	219,602
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities			(5,856	)			5,405			11,169				22,677				(6,525	)
Defined Benefit Plans			(3,482	)			245			(2,974	)			(2,746	)			(2,326	)
Other Comprehensive Income (Loss)			(9,338	)			5,650			8,195				19,931				(8,851	)
Comprehensive Income		$	48,805			$	57,702		$	62,106			$	245,844			$	210,751

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
		December 31,				September 30,				December 31,
(dollars in thousands)		2019				2019				2018
Assets
Interest-Bearing Deposits in Other Banks		$	4,979			$	2,946			$	3,028
Funds Sold			254,574				108,446				198,860
Investment Securities
Available-for-Sale			2,619,003				2,594,394				2,007,942
Held-to-Maturity (Fair Value of $3,062,882; $2,972,273; and $3,413,994)			3,042,294				2,946,910				3,482,092
Loans Held for Sale			39,062				36,720				10,987
Loans and Leases			10,990,892				10,881,298				10,448,774
Allowance for Loan and Lease Losses			(110,027	)			(108,936	)			(106,693	)
Net Loans and Leases			10,880,865				10,772,362				10,342,081
Total Earning Assets			16,840,777				16,461,778				16,044,990
Cash and Due from Banks			299,105				259,492				324,081
Premises and Equipment, Net			188,388				179,453				151,837
Operating Lease Right-of-Use Assets			100,838				101,005				-
Accrued Interest Receivable			46,476				47,897				51,230
Foreclosed Real Estate			2,737				2,939				1,356
Mortgage Servicing Rights			25,022				24,408				24,310
Goodwill			31,517				31,517				31,517
Bank-Owned Life Insurance			287,962				286,936				283,771
Other Assets			272,674				276,715				230,882
Total Assets		$	18,095,496			$	17,672,140			$	17,143,974
Liabilities
Deposits
Noninterest-Bearing Demand		$	4,489,525			$	4,392,706			$	4,739,596
Interest-Bearing Demand			3,127,205				3,000,865				3,002,925
Savings			6,365,321				6,141,098				5,539,199
Time			1,802,431				1,806,083				1,745,522
Total Deposits			15,784,482				15,340,752				15,027,242
Short-Term Borrowings			-				-				199
Securities Sold Under Agreements to Repurchase			604,306				604,299				504,296
Other Debt			85,565				110,585				135,643
Operating Lease Liabilities			108,210				108,264				-
Retirement Benefits Payable			44,504				39,682				40,494
Accrued Interest Payable			8,040				8,435				8,253
Taxes Payable and Deferred Taxes			16,085				21,089				19,736
Other Liabilities			157,472				147,544				139,911
Total Liabilities			16,808,664				16,380,650				15,875,774
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2019 - 58,166,910 / 40,039,695;
September 30, 2019 - 58,176,305 / 40,359,259;
and December 31, 2018 - 58,063,689 / 41,499,898)			579				579				577
Capital Surplus			582,566				580,200				571,704
Accumulated Other Comprehensive Loss			(31,112	)			(21,774	)			(51,043	)
Retained Earnings			1,761,415				1,730,437				1,641,314
Treasury Stock, at Cost (Shares: December 31, 2019 - 18,127,215;
September 30, 2019 - 17,817,046; and December 31, 2018 - 16,563,791)			(1,026,616	)			(997,952	)			(894,352	)
Total Shareholders' Equity			1,286,832				1,291,490				1,268,200
Total Liabilities and Shareholders' Equity		$	18,095,496			$	17,672,140			$	17,143,974

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, 2017		42,401,443			$	576		$	561,161		$	(34,715	)		$	1,512,218			$	(807,372	)		$	1,231,868
Net Income		-				-			-			-				219,602				-				219,602
Other Comprehensive Loss		-				-			-			(8,851	)			-				-				(8,851	)
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from AOCI		-				-			-			(7,477	)			7,477				-				-
Share-Based Compensation		-				-			8,146			-				-				-				8,146
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits		219,210				1			2,397			-				513				5,008				7,919
Common Stock Repurchased		(1,120,755	)			-			-			-				-				(91,988	)			(91,988	)
Cash Dividends Declared ($2.34 per share)		-				-			-			-				(98,496	)			-				(98,496	)
Balance as of December 31, 2018		41,499,898			$	577		$	571,704		$	(51,043	)		$	1,641,314			$	(894,352	)		$	1,268,200
Net Income		-				-			-			-				225,913				-				225,913
Other Comprehensive Income		-				-			-			19,931				-				-				19,931
Share-Based Compensation		-				-			8,337			-				-				-				8,337
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits		212,924				2			2,525			-				(334	)			5,385				7,578
Common Stock Repurchased		(1,673,127	)			-			-			-				-				(137,649	)			(137,649	)
Cash Dividends Declared ($2.59 per share)		-				-			-			-				(105,478	)			-				(105,478	)
Balance as of December 31, 2019		40,039,695			$	579		$	582,566		$	(31,112	)		$	1,761,415			$	(1,026,616	)		$	1,286,832

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																										Table 7a
		Three Months Ended									Three Months Ended									Three Months Ended
		December 31, 2019									September 30, 2019									December 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		$	3.4		$	-		0.90	%		$	3.1		$	-		1.19	%		$	3.3		$	-		1.21	%
Funds Sold			177.7			0.7		1.59				121.1			0.7		2.12				128.2			0.7		2.22
Investment Securities
Available-for-Sale
Taxable			2,578.3			15.9		2.46				2,647.9			17.1		2.59				1,480.5			10.0		2.70
Non-Taxable			33.4			0.4		4.35				42.6			0.5		4.45				556.4			3.8		2.77
Held-to-Maturity
Taxable			2,994.7			18.4		2.46				2,873.7			18.5		2.57				3,360.5			20.0		2.38
Non-Taxable			61.7			0.4		2.70				65.2			0.4		2.72				235.1			1.9		3.16
Total Investment Securities			5,668.1			35.1		2.47				5,629.4			36.5		2.59				5,632.5			35.7		2.53
Loans Held for Sale			31.0			0.3		3.67				24.3			0.2		3.94				12.1			0.2		4.63
Loans and Leases 1
Commercial and Industrial			1,356.1			13.3		3.90				1,383.8			14.4		4.14				1,351.1			14.3		4.21
Commercial Mortgage			2,479.7			25.5		4.08				2,423.7			26.2		4.28				2,256.0			24.2		4.25
Construction			179.1			2.1		4.73				126.0			1.6		5.10				179.8			2.2		4.79
Commercial Lease Financing			135.4			0.8		2.38				161.8			1.0		2.57				173.2			1.0		2.42
Residential Mortgage			3,850.4			36.7		3.81				3,809.6			36.5		3.83				3,615.8			35.1		3.88
Home Equity			1,683.4			15.7		3.70				1,689.2			16.1		3.79				1,652.4			15.7		3.78
Automobile			715.2			6.5		3.59				707.0			6.4		3.59				641.8			6.0		3.73
Other 2			479.4			8.5		7.02				469.6			8.5		7.16				450.0			8.8		7.72
Total Loans and Leases			10,878.7			109.1		3.99				10,770.7			110.7		4.09				10,320.1			107.3		4.14
Other			34.9			0.2		2.74				35.0			0.3		2.66				36.8			0.4		3.82
Total Earning Assets 3			16,793.8			145.4		3.45				16,583.6			148.4		3.56				16,133.0			144.3		3.56
Cash and Due from Banks			222.2									231.5									234.3
Other Assets			805.0									790.3									621.3
Total Assets		$	17,821.0								$	17,605.4								$	16,988.6
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand		$	2,990.3			1.0		0.14			$	2,950.2			1.1		0.15			$	2,888.3			1.5		0.20
Savings			6,245.0			8.0		0.51				6,122.0			8.8		0.57				5,494.5			4.5		0.32
Time			1,842.3			7.4		1.59				1,851.0			8.2		1.75				1,800.7			7.2		1.59
Total Interest-Bearing Deposits			11,077.6			16.4		0.59				10,923.2			18.1		0.66				10,183.5			13.2		0.51
Short-Term Borrowings			5.8			-		1.66				27.1			0.1		2.13				89.6			0.5		2.31
Securities Sold Under Agreements to Repurchase			604.3			4.1		2.64				513.8			4.3		3.24				504.3			4.7		3.62
Other Debt			106.2			0.7		2.67				110.6			0.7		2.62				145.2			0.7		1.85
Total Interest-Bearing Liabilities			11,793.9			21.2		0.71				11,574.7			23.2		0.79				10,922.6			19.1		0.69
Net Interest Income					$	124.2								$	125.2								$	125.2
Interest Rate Spread								2.74	%								2.77	%								2.87	%
Net Interest Margin								2.95	%								3.01	%								3.10	%
Noninterest-Bearing Demand Deposits			4,363.5									4,407.5									4,596.0
Other Liabilities			370.7									333.8									215.3
Shareholders' Equity			1,292.9									1,289.4									1,254.7
Total Liabilities and Shareholders' Equity		$	17,821.0								$	17,605.4								$	16,988.6
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 $352,000, $296,000, and $1,263,000 for the three months ended December 31, 2019, September 30, 2019, and December 31, 2018, respectively.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																	Table 7b
		Year Ended									Year Ended
		December 31, 2019									December 31, 2018
		Average			Income/			Yield/			Average			Income/			Yield/
(dollars in millions)		Balance			Expense			Rate			Balance			Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	3.1		$	-		1.33	%		$	3.2		$	-		1.05	%
Funds Sold			165.7			3.6		2.14				200.0			3.7		1.86
Investment Securities
Available-for-Sale
Taxable			2,210.5			58.9		2.66				1,537.7			37.6		2.44
Non-Taxable			109.6			4.1		3.78				577.9			15.9		2.76
Held-to-Maturity
Taxable			3,148.2			78.3		2.49				3,468.4			78.4		2.26
Non-Taxable			137.8			4.2		3.04				236.5			7.5		3.17
Total Investment Securities			5,606.1			145.5		2.60				5,820.5			139.4		2.39
Loans Held for Sale			21.7			0.9		3.92				14.0			0.6		4.31
Loans and Leases 1
Commercial and Industrial			1,370.9			57.9		4.23				1,304.8			51.9		3.98
Commercial Mortgage			2,400.6			102.4		4.27				2,164.6			89.7		4.14
Construction			145.2			7.4		5.07				184.9			8.6		4.68
Commercial Lease Financing			154.4			3.7		2.43				176.8			4.1		2.29
Residential Mortgage			3,768.2			144.7		3.84				3,546.5			136.0		3.84
Home Equity			1,689.4			64.1		3.80				1,620.8			61.1		3.77
Automobile			694.9			25.1		3.62				591.2			23.2		3.92
Other 2			464.8			33.3		7.16				454.1			35.6		7.85
Total Loans and Leases			10,688.4			438.6		4.10				10,043.7			410.2		4.08
Other			35.1			1.0		2.85				39.0			1.4		3.48
Total Earning Assets 3			16,520.1			589.6		3.57				16,120.4			555.3		3.44
Cash and Due from Banks			234.0									241.6
Other Assets			783.5									609.0
Total Assets		$	17,537.6								$	16,971.0
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand		$	2,945.9			5.0		0.17			$	2,958.8			4.7		0.16
Savings			6,034.0			32.4		0.54				5,434.3			13.6		0.25
Time			1,816.3			31.0		1.71				1,725.9			22.8		1.32
Total Interest-Bearing Deposits			10,796.2			68.4		0.63				10,119.0			41.1		0.41
Short-Term Borrowings			36.5			0.9		2.41				35.5			0.8		2.13
Securities Sold Under Agreements to Repurchase			531.9			17.5		3.29				504.7			18.5		3.67
Other Debt			111.8			2.9		2.60				211.3			3.4		1.61
Total Interest-Bearing Liabilities			11,476.4			89.7		0.78				10,870.5			63.8		0.59
Net Interest Income					$	499.9								$	491.5
Interest Rate Spread								2.79	%								2.85	%
Net Interest Margin								3.03	%								3.05	%
Noninterest-Bearing Demand Deposits			4,431.9									4,638.7
Other Liabilities			349.2									216.1
Shareholders' Equity			1,280.1									1,245.7
Total Liabilities and Shareholders' Equity		$	17,537.6								$	16,971.0
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 $2,230,000 and $5,170,000 for the years ended December 31, 2019 and December 31, 2018, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8a
		Three Months Ended December 31, 2019
		Compared to September 30, 2019
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	0.2			$	(0.2	)		$	-
Investment Securities
Available-for-Sale
Taxable			(0.4	)			(0.8	)			(1.2	)
Non-Taxable			(0.1	)			-				(0.1	)
Held-to-Maturity
Taxable			0.7				(0.8	)			(0.1	)
Total Investment Securities			0.2				(1.6	)			(1.4	)
Loans Held for Sale			0.1				-				0.1
Loans and Leases
Commercial and Industrial			(0.3	)			(0.8	)			(1.1	)
Commercial Mortgage			0.6				(1.3	)			(0.7	)
Construction			0.6				(0.1	)			0.5
Commercial Lease Financing			(0.1	)			(0.1	)			(0.2	)
Residential Mortgage			0.3				(0.1	)			0.2
Home Equity			-				(0.4	)			(0.4	)
Automobile			0.1				-				0.1
Other 2			0.2				(0.2	)			-
Total Loans and Leases			1.4				(3.0	)			(1.6	)
Other			(0.1	)			-				(0.1	)
Total Change in Interest Income			1.8				(4.8	)			(3.0	)
Change in Interest Expense:
Interest-Bearing Deposits
Demand			-				(0.1	)			(0.1	)
Savings			0.1				(0.9	)			(0.8	)
Time			-				(0.8	)			(0.8	)
Total Interest-Bearing Deposits			0.1				(1.8	)			(1.7	)
Short-Term Borrowings			(0.1	)			-				(0.1	)
Securities Sold Under Agreements to Repurchase			0.7				(0.9	)			(0.2	)
Total Change in Interest Expense			0.7				(2.7	)			(2.0	)
Change in Net Interest Income		$	1.1			$	(2.1	)		$	(1.0	)
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 December 31, 2019
		Compared to December 31, 2018
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	0.2			$	(0.2	)		$	-
Investment Securities
Available-for-Sale
Taxable			6.8				(0.9	)			5.9
Non-Taxable			(4.9	)			1.5				(3.4	)
Held-to-Maturity
Taxable			(2.2	)			0.6				(1.6	)
Non-Taxable			(1.2	)			(0.3	)			(1.5	)
Total Investment Securities			(1.5	)			0.9				(0.6	)
Loans Held for Sale			0.2				(0.1	)			0.1
Loans and Leases
Commercial and Industrial			0.1				(1.1	)			(1.0	)
Commercial Mortgage			2.3				(1.0	)			1.3
Construction			-				(0.1	)			(0.1	)
Commercial Lease Financing			(0.2	)			-				(0.2	)
Residential Mortgage			2.2				(0.6	)			1.6
Home Equity			0.3				(0.3	)			-
Automobile			0.7				(0.2	)			0.5
Other 2			0.5				(0.8	)			(0.3	)
Total Loans and Leases			5.9				(4.1	)			1.8
Other			(0.1	)			(0.1	)			(0.2	)
Total Change in Interest Income			4.7				(3.6	)			1.1
Change in Interest Expense:
Interest-Bearing Deposits
Demand			-				(0.5	)			(0.5	)
Savings			0.7				2.8				3.5
Time			0.2				-				0.2
Total Interest-Bearing Deposits			0.9				2.3				3.2
Short-Term Borrowings			(0.4	)			(0.1	)			(0.5	)
Securities Sold Under Agreements to Repurchase			0.8				(1.4	)			(0.6	)
Other Debt			(0.3	)			0.3				-
Total Change in Interest Expense			1.0				1.1				2.1
Change in Net Interest Income		$	3.7			$	(4.7	)		$	(1.0	)
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 8c
		Year Ended December 31, 2019
		Compared to December 31, 2018
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	(0.7	)		$	0.6			$	(0.1	)
Investment Securities
Available-for-Sale
Taxable			17.7				3.6				21.3
Non-Taxable			(16.2	)			4.4				(11.8	)
Held-to-Maturity
Taxable			(7.6	)			7.5				(0.1	)
Non-Taxable			(3.0	)			(0.3	)			(3.3	)
Total Investment Securities			(9.1	)			15.2				6.1
Loans Held for Sale			0.3				-				0.3
Loans and Leases
Commercial and Industrial			2.7				3.3				6.0
Commercial Mortgage			10.0				2.7				12.7
Construction			(1.9	)			0.7				(1.2	)
Commercial Lease Financing			(0.6	)			0.2				(0.4	)
Residential Mortgage			8.5				0.2				8.7
Home Equity			2.6				0.4				3.0
Automobile			3.8				(1.9	)			1.9
Other 2			0.9				(3.2	)			(2.3	)
Total Loans and Leases			26.0				2.4				28.4
Other			(0.1	)			(0.3	)			(0.4	)
Total Change in Interest Income			16.4				17.9				34.3
Change in Interest Expense:
Interest-Bearing Deposits
Demand			-				0.3				0.3
Savings			1.6				17.2				18.8
Time			1.3				6.9				8.2
Total Interest-Bearing Deposits			2.9				24.4				27.3
Short-Term Borrowings			-				0.1				0.1
Securities Sold Under Agreements to Repurchase			1.0				(2.0	)			(1.0	)
Other Debt			(2.0	)			1.5				(0.5	)
Total Change in Interest Expense			1.9				24.0				25.9
Change in Net Interest Income		$	14.5			$	(6.1	)		$	8.4
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									Year Ended
		December 31,			September 30,			December 31,			December 31,
(dollars in thousands)		2019			2019			2018			2019			2018
Salaries		$	33,465		$	33,458		$	33,603		$	132,237		$	132,884
Incentive Compensation			4,864			5,681			5,715			21,913			20,687
Share-Based Compensation			1,475			2,025			1,417			8,573			8,074
Commission Expense			2,080			1,760			1,158			6,474			4,418
Retirement and Other Benefits			4,279			4,185			4,369			18,151			17,313
Payroll Taxes			2,386			2,519			2,277			11,795			11,389
Medical, Dental, and Life Insurance			2,903			3,908			5,237			15,202			16,134
Separation Expense			212			809			1,080			1,761			2,309
Total Salaries and Benefits		$	51,664		$	54,345		$	54,856		$	216,106		$	213,208

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances														Table 10
		December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)		2019			2019			2019			2019			2018
Commercial
Commercial and Industrial		$	1,379,152		$	1,361,011		$	1,408,729		$	1,331,345		$	1,331,149
Commercial Mortgage			2,518,051			2,477,296			2,411,289			2,381,213			2,302,356
Construction			194,170			154,754			119,228			132,775			170,061
Lease Financing			122,454			163,672			163,070			154,919			176,226
Total Commercial			4,213,827			4,156,733			4,102,316			4,000,252			3,979,792
Consumer
Residential Mortgage			3,891,100			3,846,511			3,785,006			3,702,553			3,673,796
Home Equity			1,676,073			1,681,951			1,694,577			1,698,666			1,681,442
Automobile			720,286			713,424			703,523			676,730			658,133
Other 1			489,606			482,679			473,707			470,408			455,611
Total Consumer			6,777,065			6,724,565			6,656,813			6,548,357			6,468,982
Total Loans and Leases		$	10,990,892		$	10,881,298		$	10,759,129		$	10,548,609		$	10,448,774
Deposits
		December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)		2019			2019			2019			2019			2018
Consumer		$	8,118,494		$	7,893,454		$	7,880,284		$	7,944,793		$	7,726,731
Commercial			6,324,214			6,153,492			6,178,984			6,162,042			6,098,186
Public and Other			1,341,774			1,293,806			1,429,553			1,160,475			1,202,325
Total Deposits		$	15,784,482		$	15,340,752		$	15,488,821		$	15,267,310		$	15,027,242
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
		December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands)		2019				2019				2019				2019				2018
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial		$	830			$	573			$	552			$	393			$	542
Commercial Mortgage			9,244				11,088				11,310				5,911				2,040
Total Commercial			10,074				11,661				11,862				6,304				2,582
Consumer
Residential Mortgage			4,125				4,258				4,697				5,599				5,321
Home Equity			3,181				2,787				2,486				2,797				3,671
Total Consumer			7,306				7,045				7,183				8,396				8,992
Total Non-Accrual Loans and Leases			17,380				18,706				19,045				14,700				11,574
Foreclosed Real Estate			2,737				2,939				2,737				3,225				1,356
Total Non-Performing Assets		$	20,117			$	21,645			$	21,782			$	17,925			$	12,930
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial		$	-			$	81			$	-			$	66			$	10
Total Commercial			-				81				-				66				10
Consumer
Residential Mortgage			1,839				2,032				1,859				903				2,446
Home Equity			4,125				2,320				2,981				3,381				2,684
Automobile			949				582				607				734				513
Other 1			1,493				1,076				963				1,033				914
Total Consumer			8,406				6,010				6,410				6,051				6,557
Total Accruing Loans and Leases Past Due 90 Days or More		$	8,406			$	6,091			$	6,410			$	6,117			$	6,567
Restructured Loans on Accrual Status and Not Past Due 90 Days or More		$	63,103			$	46,178			$	48,563			$	48,571			$	48,731
Total Loans and Leases		$	10,990,892			$	10,881,298			$	10,759,129			$	10,548,609			$	10,448,774
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.16%				0.17%				0.18%				0.14%				0.11%
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate			0.18%				0.20%				0.20%				0.17%				0.12%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate			0.24%				0.28%				0.29%				0.16%				0.06%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate			0.15%				0.15%				0.15%				0.18%				0.16%
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			0.26%				0.25%				0.26%				0.23%				0.19%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter			21,645			$	21,782			$	17,925			$	12,930			$	13,798
Additions			883				1,035				6,186				8,217				4,509
Reductions
Payments			(495	)			(984	)			(441	)			(989	)			(3,759	)
Return to Accrual Status			(1,673	)			-				(1,344	)			(316	)			(605	)
Sales of Foreclosed Real Estate			(201	)			-				(374	)			-				(653	)
Charge-offs/Write-downs			(42	)			(188	)			(170	)			(1,917	)			(360	)
Total Reductions			(2,411	)			(1,172	)			(2,329	)			(3,222	)			(5,377	)
Balance at End of Quarter		$	20,117			$	21,645			$	21,782			$	17,925			$	12,930
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												Year Ended
		December 31,				September 30,				December 31,				December 31,
(dollars in thousands)		2019				2019				2018				2019				2018
Balance at Beginning of Period		$	115,758			$	114,494			$	115,512			$	113,515				114,168
Loans and Leases Charged-Off
Commercial
Commercial and Industrial			(307	)			(239	)			(365	)			(1,122	)			(1,505	)
Commercial Mortgage			-				-				-				(1,616	)			-
Consumer
Residential Mortgage			(50	)			(7	)			(1	)			(112	)			(101	)
Home Equity			(245	)			(215	)			(406	)			(900	)			(665	)
Automobile			(1,990	)			(1,696	)			(2,335	)			(7,130	)			(8,218	)
Other 1			(3,651	)			(3,598	)			(3,781	)			(13,075	)			(14,075	)
Total Loans and Leases Charged-Off			(6,243	)			(5,755	)			(6,888	)			(23,955	)			(24,564	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial			293				318				803				1,513				2,039
Consumer
Residential Mortgage			699				649				112				1,927				807
Home Equity			577				428				367				2,339				2,001
Automobile			512				660				949				2,961				2,902
Other 1			503				714				660				2,549				2,737
Total Recoveries on Loans and Leases Previously Charged-Off			2,584				2,769				2,891				11,289				10,486
Net Loans and Leases Charged-Off			(3,659	)			(2,986	)			(3,997	)			(12,666	)			(14,078	)
Provision for Credit Losses			4,750				4,250				2,000				16,000				13,425
Provision for Unfunded Commitments			-				-				-				-				-
Balance at End of Period 2		$	116,849			$	115,758			$	113,515			$	116,849			$	113,515
Components
Allowance for Loan and Lease Losses		$	110,027			$	108,936			$	106,693			$	110,027				106,693
Reserve for Unfunded Commitments			6,822				6,822				6,822				6,822				6,822
Total Reserve for Credit Losses		$	116,849			$	115,758			$	113,515			$	116,849			$	113,515
Average Loans and Leases Outstanding		$	10,878,672			$	10,770,720			$	10,320,051			$	10,688,424			$	10,043,661
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)			0.13%				0.11%				0.15%				0.12%				0.14%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding			1.00%				1.00%				1.02%				1.00%				1.02%
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 13a
										Investment
										Services and
		Retail				Commercial				Private				Treasury				Consolidated
(dollars in thousands)		Banking				Banking				Banking				and Other				Total
Three Months Ended December 31, 2019
Net Interest Income		$	66,410			$	45,475			$	9,689			$	2,311			$	123,885
Provision for Credit Losses			3,818				(165	)			1				1,096				4,750
Net Interest Income After Provision for Credit Losses			62,592				45,640				9,688				1,215				119,135
Noninterest Income			21,377				10,624				13,929				1,772				47,702
Noninterest Expense			(52,720	)			(21,071	)			(15,774	)			(3,531	)			(93,096	)
Income Before Provision for Income Taxes			31,249				35,193				7,843				(544	)			73,741
Provision for Income Taxes			(7,842	)			(6,345	)			(2,067	)			656				(15,598	)
Net Income		$	23,407			$	28,848			$	5,776			$	112			$	58,143
Total Assets as of December 31, 2019		$	6,732,811			$	4,254,261			$	321,700			$	6,786,724			$	18,095,496
Three Months Ended December 31, 2018
Net Interest Income		$	67,452			$	46,429			$	10,235			$	(143	)		$	123,973
Provision for Credit Losses			4,481				(484	)			(1	)			(1,996	)			2,000
Net Interest Income After Provision for Credit Losses			62,971				46,913				10,236				1,853				121,973
Noninterest Income			20,339				6,338				13,397				2,034				42,108
Noninterest Expense			(53,417	)			(20,912	)			(17,583	)			(3,999	)			(95,911	)
Income Before Provision for Income Taxes			29,893				32,339				6,050				(112	)			68,170
Provision for Income Taxes			(7,465	)			(7,714	)			(1,595	)			2,515				(14,259	)
Net Income		$	22,428			$	24,625			$	4,455			$	2,403			$	53,911
Total Assets as of December 31, 2018		$	6,365,263			$	3,958,523			$	349,832			$	6,470,356			$	17,143,974

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information																		Table 13b
										Investment
										Services and
		Retail				Commercial				Private				Treasury				Consolidated
(dollars in thousands)		Banking				Banking				Banking				and Other				Total
Year Ended December 31, 2019
Net Interest Income		$	266,429			$	185,259			$	39,374			$	6,653			$	497,715
Provision for Credit Losses			11,670				976				15				3,339				16,000
Net Interest Income After Provision for Credit Losses			254,759				184,283				39,359				3,314				481,715
Noninterest Income			86,682				33,362				55,696				7,598				183,338
Noninterest Expense			(216,688	)			(84,616	)			(64,974	)			(12,949	)			(379,227	)
Income Before Provision for Income Taxes			124,753				133,029				30,081				(2,037	)			285,826
Provision for Income Taxes			(30,725	)			(28,852	)			(7,929	)			7,593				(59,913	)
Net Income		$	94,028			$	104,177			$	22,152			$	5,556			$	225,913
Total Assets as of December 31, 2019		$	6,732,811			$	4,254,261			$	321,700			$	6,786,724			$	18,095,496
Year Ended December 31, 2018
Net Interest Income		$	264,459			$	179,577			$	41,222			$	1,094			$	486,352
Provision for Credit Losses			14,898				(760	)			(61	)			(652	)			13,425
Net Interest Income After Provision for Credit Losses			249,561				180,337				41,283				1,746				472,927
Noninterest Income			79,004				23,733				55,338				10,848				168,923
Noninterest Expense			(211,761	)			(81,344	)			(65,847	)			(12,672	)			(371,624	)
Income Before Provision for Income Taxes			116,804				122,726				30,774				(78	)			270,226
Provision for Income Taxes			(29,172	)			(28,496	)			(8,113	)			15,157				(50,624	)
Net Income		$	87,632			$	94,230			$	22,661			$	15,079			$	219,602
Total Assets as of December 31, 2018		$	6,365,263			$	3,958,523			$	349,832			$	6,470,356			$	17,143,974

Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data																						Table 14
		Three Months Ended
		December 31,					September 30,					June 30,					March 31,					December 31,
(dollars in thousands, except per share amounts)		2019					2019					2019					2019					2018
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases		$	109,223				$	110,877				$	110,401				$	108,511				$	107,404
Income on Investment Securities
Available-for-Sale			16,158					17,512					15,072					13,432					13,043
Held-to-Maturity			18,750					18,796					22,149					21,921					21,482
Deposits			8					9					9					15					10
Funds Sold			723					656					730					1,444					727
Other			239					233					210					319					352
Total Interest Income			145,101					148,083					148,571					145,642					143,018
Interest Expense
Deposits			16,407					18,055					18,628					15,284					13,172
Securities Sold Under Agreements to Repurchase			4,071					4,257					4,623					4,571					4,671
Funds Purchased			25					146					512					157					440
Short-Term Borrowings			-					1					1					36					88
Other Debt			713					728					710					757					674
Total Interest Expense			21,216					23,187					24,474					20,805					19,045
Net Interest Income			123,885					124,896					124,097					124,837					123,973
Provision for Credit Losses			4,750					4,250					4,000					3,000					2,000
Net Interest Income After Provision for Credit Losses			119,135					120,646					120,097					121,837					121,973
Noninterest Income
Trust and Asset Management			11,157					10,930					11,385					10,761					10,558
Mortgage Banking			3,199					4,864					3,336					2,287					2,148
Service Charges on Deposit Accounts			7,835					7,592					7,283					7,364					7,562
Fees, Exchange, and Other Service Charges			14,533					14,900					14,252					14,208					14,576
Investment Securities Gains (Losses), Net			(906	)				(1,469	)				(776	)				(835	)				(841	)
Annuity and Insurance			1,272					1,278					1,806					2,578					1,409
Bank-Owned Life Insurance			1,879					1,647					1,779					1,710					1,941
Other			8,733					6,765					6,385					5,606					4,755
Total Noninterest Income			47,702					46,507					45,450					43,679					42,108
Noninterest Expense
Salaries and Benefits			51,664					54,345					53,511					56,586					54,856
Net Occupancy			8,824					8,803					8,579					7,594					8,918
Net Equipment			7,930					7,637					6,895					6,833					6,364
Data Processing			4,828					4,676					4,727					4,526					5,151
Professional Fees			3,257					2,184					2,177					2,453					2,467
FDIC Insurance			1,376					1,257					1,290					1,269					1,336
Other			15,217					21,447					15,546					13,796					16,819
Total Noninterest Expense			93,096					100,349					92,725					93,057					95,911
Income Before Provision for Income Taxes			73,741					66,804					72,822					72,459					68,170
Provision for Income Taxes			15,598					14,752					15,903					13,660					14,259
Net Income		$	58,143				$	52,052				$	56,919				$	58,799				$	53,911
Basic Earnings Per Share		$	1.46				$	1.30				$	1.40				$	1.44				$	1.30
Diluted Earnings Per Share		$	1.45				$	1.29				$	1.40				$	1.43				$	1.30
Balance Sheet Totals
Loans and Leases		$	10,990,892				$	10,881,298				$	10,759,129				$	10,548,609				$	10,448,774
Total Assets			18,095,496					17,672,140					17,688,845					17,446,413					17,143,974
Total Deposits			15,784,482					15,340,752					15,488,821					15,267,310					15,027,242
Total Shareholders' Equity			1,286,832					1,291,490					1,285,948					1,269,690					1,268,200
Performance Ratios
Return on Average Assets			1.29		%			1.17		%			1.31		%			1.38		%			1.26		%
Return on Average Shareholders' Equity			17.84					16.02					17.97					18.81					17.05
Efficiency Ratio 1			54.26					58.55					54.69					55.22					57.75
Net Interest Margin 2			2.95					3.01					3.04					3.12					3.10
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
		Eleven Months Ended						Year Ended
($ in millions; jobs in thousands)		November 30, 2019						December 31, 2018									December 31, 2017
Hawaii Economic Trends
State General Fund Revenues 1		$	6,749.3		6.0	%		$	6,933.1				6.9		%		$	6,485.0			4.3	%
General Excise and Use Tax Revenue 1		$	3,316.0		5.4	%		$	3,426.5				2.3		%		$	3,349.8			4.5	%
Jobs 2			645.3						660.0									664.5
													December 31,
(spot rates)													2019				2018				2017
Unemployment 3
Statewide, seasonally adjusted													2.6		%			2.6	%		2.3	%
Oahu													2.1					2.2			1.7
Island of Hawaii													3.0					2.9			2.0
Maui													2.2					2.2			1.8
Kauai													2.5					2.3			1.7
								December 31,
(percentage change, except months of inventory)								2019					2018				2017				2016
Housing Trends (Single Family Oahu) 4
Median Home Price									(0.1	)	%		4.6		%			2.7	%		5.0	%
Home Sales Volume (units)									3.9		%		(7.7	)	%			6.3	%		6.5	%
Months of Inventory									2.5				2.8					2.1			2.5
								Monthly Visitor Arrivals,									Percentage Change
(in thousands)								Not Seasonally Adjusted									from Previous Year
Tourism 5
November 30, 2019													811.4								4.2
October 31, 2019													800.4								4.8
September 30, 2019													741.3								3.5
August 31, 2019													928.2								9.8
July 31, 2019													997.9								6.2
June 30, 2019													951.6								6.1
May 31, 2019													841.4								4.6
April 30, 2019													856.3								6.6
March 31, 2019													939.1								3.9
February 28, 2019													782.6								0.5
January 31, 2019													820.6								3.0
December 31, 2018													910.1								3.4
November 30, 2018													778.5								3.9
October 31, 2018													763.7								3.5
September 30, 2018													716.1								2.2
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
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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