Bank of Hawaii Corporation First Quarter 2022 Financial Results

Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per common share of $1.32 for the first quarter of 2022, compared with diluted earnings per common share of $1.55 in the previous quarter and $1.50 in the same quarter last year. Net income for the first quarter of 2022 was $54.8 million, down 14.1% from the fourth quarter of 2021 and down 8.5% from the first quarter of 2021.

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“Bank of Hawaii had a good start to 2022 with solid operating performance," said Peter Ho, Chairman, President, and CEO. “We saw good continuing momentum in core loan and deposit growth and expansion in core net interest margin. Asset quality continued its stable trend, and capital and liquidity remain strong.”

Financial Highlights

• The return on average assets for the first quarter of 2022 was 0.97% compared with 1.12% in the previous quarter and 1.15% in the same quarter of 2021. The return on average common equity for the first quarter of 2022 was 15.44% compared with 17.40% in the previous quarter and 17.65% in the same quarter of 2021.
  • The decrease from prior quarter was primarily driven by lower provision release and seasonal payroll expenses.
  • The decrease from prior year was primarily driven by lower provision release.

• Net interest income for the first quarter of 2022 was $125.3 million, a decrease of 0.9% from the fourth quarter of 2021 and an increase of 3.9% from the first quarter of 2021. Net interest margin was 2.34% in the first quarter of 2022, unchanged compared to the previous quarter and a decrease of 9 basis points from the same quarter of 2021.
  • One-time significant items in the fourth quarter of 2021 included a negative $0.9 million adjustment to net interest income for deferred mortgage loan fees related to prior quarters of 2021. The adjustment had a negative impact of 2 basis points on the net interest margin.

• The provision for credit losses for the first quarter of 2022 was a net benefit of $5.5 million compared with a net benefit of $9.7 million in the previous quarter and a net benefit of $14.3 million in the same quarter of 2021.

• Noninterest income was $43.6 million in the first quarter of 2022, an increase of 2.3% from the previous quarter and an increase of 1.4% from the same quarter of 2021.

• Noninterest expense was $103.9 million in the first quarter of 2022, an increase of 2.2% from the previous quarter and an increase of 5.1% from the same quarter of 2021.
  • Noninterest expense in the first quarter of 2022 included seasonal payroll expenses of approximately $3.7 million.
  • One-time significant items in the fourth quarter of 2021 included $1.2 million related to an increase in vacation carryover limits.
  • Noninterest expense in the first quarter of 2021 included seasonal payroll expenses of approximately $2.1 million, charges related to the rollout of contactless cards of $1.9 million, and separation expenses of $1.8 million.

• The effective tax rate for the first quarter of 2022 was 22.15% compared with 17.08% in the previous quarter and 24.09% during the same quarter of 2021.
  • The fourth quarter of 2021 included a $3.6 million benefit due to larger than expected tax credits from 2020 and a reduction in the valuation allowance related to low-income housing partnerships.

Asset Quality

The Company’s overall asset quality continued to remain strong during the first quarter of 2022.

• Total non-performing assets were $20.0 million at March 31, 2022, up by $1.0 million from December 31, 2021 and up $2.1 million from March 31, 2021. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.16% at the end of the quarter, an increase of 1 basis point from the end of both the prior quarter and same quarter of 2021.

• Net loan and lease charge-offs during the first quarter of 2022 were $1.5 million or 0.05% annualized of total average loans and leases outstanding.
  • Net loan and lease charge-offs for the first quarter of 2022 were comprised of charge-offs of $3.9 million partially offset by recoveries of $2.4 million.
  • Compared to the prior quarter, net loan and lease charge-offs increased by $0.8 million or 3 basis points annualized on total average loans and leases outstanding.
  • Compared to the same quarter of 2021, net loan and lease charge-offs decreased by $1.4 million or 5 basis points annualized on total average loans and leases outstanding.

• The allowance for credit losses on loans and leases was $152.0 million at March 31, 2022, a decrease of $5.8 million from December 31, 2021 and $46.3 million from March 31, 2021. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.21% at the end of the quarter, down 8 basis points from the end of the prior quarter and down 42 basis points from the end of the same quarter of 2021.

Balance Sheet

• Total assets were $23.0 billion at March 31, 2022, an increase of 0.9% from December 31, 2021 and an increase of 4.8% from March 31, 2021.

• The investment securities portfolio was $8.7 billion at March 31, 2022, a decrease of 2.5% from December 31, 2021 and an increase of 16.8% from March 31, 2021.
  • The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.
  • The increase from March 31, 2021 was primarily due to growth in deposits that outpaced loan growth.

• Total loans and leases were $12.5 billion at March 31, 2022, an increase of 2.3% from December 31, 2021 and an increase of 3.3% from March 31, 2021.
  • Total loans and leases excluding PPP loans were $12.5 billion at March 31, 2022, an increase of 2.9% from December 31, 2021 and an increase of 9.4% from March 31, 2021.

• Total deposits reached a new record high of $20.7 billion at March 31, 2022, an increase of 1.7% from December 31, 2021 and an increase of 5.9% from March 31, 2021.

Capital and Dividends

• The Tier 1 Capital Ratio was 13.22% at March 31, 2022 compared with 13.56% at December 31, 2021 and 12.35% at March 31, 2021.
  • The increase from the same period in 2021 was driven by the issuance of $180 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A in the second quarter of 2021.

• The Tier 1 Leverage Ratio was 7.30% at March 31, 2022 compared with 7.32% at December 31, 2021 and 6.61% at March 31, 2021.
  • The increase from the same period in 2021 was driven by the aforementioned issuance of preferred stock in the second quarter of 2021.

• The Company repurchased 116.8 thousand shares of common stock at a total cost of $10.0 million under its share repurchase program in the first quarter of 2022 at an average cost of $85.34 per share repurchased.
  • Total remaining buyback authority under the share repurchase program was $75.8 million at March 31, 2022.

• The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on June 14, 2022 to shareholders of record at the close of business on May 31, 2022.

• On April 5, 2022, the Board of Directors declared the quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, on its preferred stock. The depositary shares representing the Series A Preferred Stock are traded on the NYSE under the symbol “BOH.PRA.” The dividend will be payable on May 2, 2022 to shareholders of record of the preferred stock at the close of business on April 18, 2022.

Conference Call Information

The Company will review its first quarter financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawaii Corporation's website, www.boh.com.

• The webcast link is https://edge.media-server.com/mmc/p/5x73dqat.
• The toll-free number for the teleconference 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 of the conference call will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, April 25, 2022. The replay number is 1 [phone] in the United States and Canada and 1 [phone] from other international locations. Enter the conference ID 4637209 when prompted. In addition, the 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" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. 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, 2021 which was filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

Bank of Hawaii Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawaii and the West Pacific. The Company's principal subsidiary, Bank of Hawai'i, 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
	March 31,				December 31,				March 31,
(dollars in thousands, except per share amounts)	2022				2021				2021
For the Period:
Operating Results
Net Interest Income	$	125,263			$	126,388			$	120,569
Provision for Credit Losses		(5,500	)			(9,700	)			(14,300	)
Total Noninterest Income		43,551				42,574				42,970
Total Noninterest Expense		103,874				101,678				98,865
Net Income		54,834				63,837				59,949
Basic Earnings Per Common Share		1.33				1.56				1.51
Diluted Earnings Per Common Share		1.32				1.55				1.50
Dividends Declared Per Common Share		0.70				0.70				0.67
Performance Ratios
Return on Average Assets		0.97		%		1.12		%		1.15		%
Return on Average Shareholders' Equity		14.18				15.92				17.65
Return on Average Common Equity		15.44				17.40				17.65
Efficiency Ratio 1		61.53				60.18				60.45
Net Interest Margin 2		2.34				2.34				2.43
Dividend Payout Ratio 3		52.63				44.87				44.37
Average Shareholders' Equity to Average Assets		6.87				7.02				6.51
Average Balances
Average Loans and Leases	$	12,290,402			$	12,086,705			$	11,952,587
Average Assets		22,847,488				22,666,280				21,150,670
Average Deposits		20,426,076				20,222,470				18,665,222
Average Shareholders' Equity		1,568,725				1,590,600				1,377,272
Per Share of Common Stock
Book Value	$	31.50			$	35.57			$	33.67
Tangible Book Value		30.71				34.78				32.89
Market Value
Closing		83.92				83.76				89.49
High		92.38				88.96				99.10
Low		79.60				78.73				75.65
	March 31,				December 31,				March 31,
	2022				2021				2021
As of Period End:
Balance Sheet Totals
Loans and Leases	$	12,544,492			$	12,259,076			$	12,140,703
Total Assets		23,000,317				22,784,941				21,947,271
Total Deposits		20,716,287				20,360,108				19,556,651
Other Debt		10,367				10,391				60,459
Total Shareholders' Equity		1,448,885				1,611,611				1,360,221
Asset Quality
Non-Performing Assets	$	19,979			$	18,966			$	17,883
Allowance for Credit Losses - Loans and Leases		152,028				157,821				198,343
Allowance to Loans and Leases Outstanding 4		1.21		%		1.29		%		1.63		%
Capital Ratios 5
Common Equity Tier 1 Capital Ratio		11.83		%		12.12		%		12.35		%
Tier 1 Capital Ratio		13.22				13.56				12.35
Total Capital Ratio		14.41				14.81				13.61
Tier 1 Leverage Ratio		7.30				7.32				6.61
Total Shareholders' Equity to Total Assets		6.30				7.07				6.20
Tangible Common Equity to Tangible Assets 6		5.39				6.15				6.06
Tangible Common Equity to Risk-Weighted Assets 6		9.77				11.44				11.78
Non-Financial Data
Full-Time Equivalent Employees		2,084				2,056				2,058
Branches		54				54				63
ATMs		307				307				361
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 common share divided by basic earnings per common share.
4 The numerator comprises the Allowance for Credit Losses - Loans and Leases.
5 Regulatory capital ratios as of March 31, 2022 are preliminary.
6 Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. Tangible common equity is defined by the Company as common shareholders' equity minus goodwill. See Table 2 "Reconciliation of Non-GAAP Financial Measures".

Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures												Table 2
				March 31,				December 31,				March 31,
(dollars in thousands)				2022				2021				2021
Total Shareholders' Equity				$	1,448,885			$	1,611,611			$	1,360,221
Less: Preferred Stock					180,000				180,000				-
Goodwill					31,517				31,517				31,517
Tangible Common Equity				$	1,237,368			$	1,400,094			$	1,328,704
Total Assets					23,000,317				22,784,941				21,947,271
Less: Goodwill					31,517				31,517				31,517
Tangible Assets				$	22,968,800			$	22,753,424			$	21,915,754
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements 1				$	12,663,646			$	12,236,805			$	11,275,565
Total Shareholders' Equity to Total Assets					6.30	%			7.07	%			6.20	%
Tangible Common Equity to Tangible Assets (Non-GAAP)					5.39	%			6.15	%			6.06	%
Tier 1 Capital Ratio 1					13.22	%			13.56	%			12.35	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1					9.77	%			11.44	%			11.78	%
1 Regulatory capital ratios as of March 31, 2022 are preliminary.

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)		2022				2021				2021
Interest Income
Interest and Fees on Loans and Leases		$	94,439			$	97,853			$	99,299
Income on Investment Securities
Available-for-Sale			17,100				15,850				15,837
Held-to-Maturity			18,701				18,325				13,300
Deposits			4				1				7
Funds Sold			127				104				137
Other			202				176				185
Total Interest Income			130,573				132,309				128,765
Interest Expense
Deposits			2,353				2,898				4,329
Securities Sold Under Agreements to Repurchase			2,772				2,834				3,533
Funds Purchased			2				6				1
Other Debt			183				183				333
Total Interest Expense			5,310				5,921				8,196
Net Interest Income			125,263				126,388				120,569
Provision for Credit Losses			(5,500	)			(9,700	)			(14,300	)
Net Interest Income After Provision for Credit Losses			130,763				136,088				134,869
Noninterest Income
Trust and Asset Management			11,276				11,693				11,278
Mortgage Banking			2,740				2,908				5,862
Service Charges on Deposit Accounts			7,272				6,861				6,128
Fees, Exchange, and Other Service Charges			12,952				14,439				13,607
Investment Securities Losses, Net			(1,545	)			(1,258	)			(1,203	)
Annuity and Insurance			791				876				702
Bank-Owned Life Insurance			2,349				1,907				1,917
Other			7,716				5,148				4,679
Total Noninterest Income			43,551				42,574				42,970
Noninterest Expense
Salaries and Benefits			59,924				59,434				56,251
Net Occupancy			9,826				9,028				9,090
Net Equipment			9,153				9,105				8,878
Data Processing			4,560				4,696				6,322
Professional Fees			3,258				3,427				3,406
FDIC Insurance			1,502				1,619				1,654
Other			15,651				14,369				13,264
Total Noninterest Expense			103,874				101,678				98,865
Income Before Provision for Income Taxes			70,440				76,984				78,974
Provision for Income Taxes			15,606				13,147				19,025
Net Income		$	54,834			$	63,837			$	59,949
Preferred Stock Dividends			1,969				1,969				-
Net Income Available to Common Shareholders		$	52,865			$	61,868			$	59,949
Basic Earnings Per Common Share		$	1.33			$	1.56			$	1.51
Diluted Earnings Per Common Share		$	1.32			$	1.55			$	1.50
Dividends Declared Per Common Share		$	0.70			$	0.70			$	0.67
Basic Weighted Average Common Shares			39,752,679				39,741,063				39,827,590
Diluted Weighted Average Common Shares			39,956,391				39,955,525				40,071,477

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)										Table 4
		Three Months Ended
		March 31,				December 31,				March 31,
(dollars in thousands)		2022				2021				2021
Net Income		$	54,834			$	63,837			$	59,949
Other Comprehensive Loss, Net of Tax:
Net Unrealized Losses on Investment Securities			(180,124	)			(26,244	)			(50,050	)
Defined Benefit Plans			353				8,430				441
Other Comprehensive Loss			(179,771	)			(17,814	)			(49,609	)
Comprehensive Income (Loss)		$	(124,937	)		$	46,023			$	10,340

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
		March 31,				December 31,				March 31,
(dollars in thousands)		2022				2021				2021
Assets
Interest-Bearing Deposits in Other Banks		$	2,488			$	2,571			$	4,506
Funds Sold			356,373				361,536				1,101,631
Investment Securities
Available-for-Sale			4,258,534				4,276,056				4,024,763
Held-to-Maturity (Fair Value of $4,171,262; $4,646,619; $3,477,346)			4,489,615				4,694,780				3,464,360
Loans Held for Sale			5,293				26,746				18,320
Loans and Leases			12,544,492				12,259,076				12,140,703
Allowance for Credit Losses			(152,028	)			(157,821	)			(198,343	)
Net Loans and Leases			12,392,464				12,101,255				11,942,360
Total Earning Assets			21,504,767				21,462,944				20,555,940
Cash and Due from Banks			236,193				196,327				286,717
Premises and Equipment, Net			199,743				199,393				198,107
Operating Lease Right-of-Use Assets			93,563				95,621				97,750
Accrued Interest Receivable			45,392				45,242				47,917
Foreclosed Real Estate			2,332				2,332				2,332
Mortgage Servicing Rights			23,968				22,251				22,320
Goodwill			31,517				31,517				31,517
Bank-Owned Life Insurance			446,926				344,587				291,764
Other Assets			415,916				384,727				412,907
Total Assets		$	23,000,317			$	22,784,941			$	21,947,271
Liabilities
Deposits
Noninterest-Bearing Demand			7,500,741				7,275,287				6,227,436
Interest-Bearing Demand			4,591,178				4,628,567				4,379,243
Savings			7,701,849				7,456,165				7,474,580
Time			922,519				1,000,089				1,475,392
Total Deposits			20,716,287				20,360,108				19,556,651
Securities Sold Under Agreements to Repurchase			450,490				450,490				600,490
Other Debt			10,367				10,391				60,459
Operating Lease Liabilities			101,274				103,210				105,820
Retirement Benefits Payable			38,008				38,494				50,687
Accrued Interest Payable			2,545				2,499				4,109
Taxes Payable			17,265				11,901				15,599
Other Liabilities			215,196				196,237				193,235
Total Liabilities			21,551,432				21,173,330				20,587,050
Shareholders' Equity
Preferred Stock ($.01 par value; authorized 180,000 shares;
issued / outstanding: March 31, 2022 and December 31, 2021 - 180,000)			180,000				180,000				-
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: March 31, 2022 - 58,717,811 / 40,288,365;
December 31, 2021 - 58,554,669 / 40,253,193; and March 31, 2021 - 58,553,365 / 40,394,234)			582				581				580
Capital Surplus			607,061				602,508				594,804
Accumulated Other Comprehensive Loss			(246,153	)			(66,382	)			(41,787	)
Retained Earnings			1,974,790				1,950,375				1,844,057
Treasury Stock, at Cost (Shares: March 31, 2022 - 18,429,446; December 31, 2021 - 18,301,476;
and March 31, 2021 - 18,159,131)			(1,067,395	)			(1,055,471	)			(1,037,433	)
Total Shareholders' Equity			1,448,885				1,611,611				1,360,221
Total Liabilities and Shareholders' Equity		$	23,000,317			$	22,784,941			$	21,947,271

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																			Table 6
										Accum.
										Other
										Compre-
	Preferred			Common						hensive
	Shares	Preferred		Shares		Common		Capital		Income			Retained			Treasury
(dollars in thousands)	Outstanding	Stock		Outstanding		Stock		Surplus		(Loss)			Earnings			Stock			Total
Balance as of December 31, 2021	180,000	$	180,000	40,253,193		$	581	$	602,508	$	(66,382	)	$	1,950,375		$	(1,055,471	)	$	1,611,611
Net Income	-		-	-			-		-		-			54,834			-			54,834
Other Comprehensive Loss	-		-	-			-		-		(179,771	)		-			-			(179,771	)
Share-Based Compensation	-		-	-			-		4,010		-			-			-			4,010
Common Stock Issued under Purchase and
Equity Compensation Plans	-		-	197,783			1		543		-			(185	)		2,036			2,395
Common Stock Repurchased	-		-	(162,611	)		-		-		-			-			(13,960	)		(13,960	)
Cash Dividends Declared Common Stock
($0.70 per share)	-		-	-			-		-		-			(28,265	)		-			(28,265	)
Cash Dividends Declared Preferred Stock	-		-	-			-		-		-			(1,969	)		-			(1,969	)
Balance as of March 31, 2022	180,000	$	180,000	40,288,365		$	582	$	607,061	$	(246,153	)	$	1,974,790		$	(1,067,395	)	$	1,448,885
Balance as of December 31, 2020	-		-	40,119,312			580		591,360		7,822			1,811,979			(1,037,234	)		1,374,507
Net Income	-		-	-			-		-		-			59,949			-			59,949
Other Comprehensive Loss	-		-	-			-		-		(49,609	)		-			-			(49,609	)
Share-Based Compensation	-		-	-			-		2,780		-			-			-			2,780
Common Stock Issued under Purchase and
Equity Compensation Plans	-		-	310,905			-		664		-			(845	)		2,990			2,809
Common Stock Repurchased	-		-	(35,983	)		-		-		-			-			(3,189	)		(3,189	)
Cash Dividends Declared Common Stock
($0.67 per share)	-		-	-			-		-		-			(27,026	)		-			(27,026	)
Balance as of March 31, 2021	-	$	-	40,394,234		$	580	$	594,804	$	(41,787	)	$	1,844,057		$	(1,037,433	)	$	1,360,221

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1																		Table 7
	Three Months Ended						Three Months Ended						Three Months Ended
	March 31, 2022						December 31, 2021						March 31, 2021
	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	$	-	0.45	%	$	2.2	$	-	0.05	%	$	3.2	$	-	0.93	%
Funds Sold		238.5		0.1	0.21			273.2		0.1	0.15			550.6		0.1	0.10
Investment Securities
Available-for-Sale
Taxable		4,399.9		17.1	1.56			4,308.6		15.8	1.47			4,007.9		15.8	1.57
Non-Taxable		3.0		-	1.93			5.8		0.1	3.67			12.3		0.1	4.27
Held-to-Maturity
Taxable		4,567.4		18.6	1.63			4,757.4		18.1	1.52			3,385.8		13.1	1.55
Non-Taxable		35.8		0.2	2.10			58.0		0.3	2.31			38.1		0.2	2.55
Total Investment Securities		9,006.1		35.9	1.59			9,129.8		34.3	1.50			7,444.1		29.2	1.57
Loans Held for Sale		13.7		0.1	2.78			20.8		0.1	2.85			26.2		0.2	2.76
Loans and Leases 2
Commercial and Industrial		1,421.9		10.8	3.08			1,478.0		14.6	3.92			1,904.5		14.3	3.05
Commercial Mortgage		3,158.8		21.7	2.80			3,075.1		22.2	2.86			2,846.0		21.3	3.04
Construction		227.6		2.1	3.68			246.8		2.2	3.50			264.1		2.3	3.48
Commercial Lease Financing		98.8		0.4	1.45			107.4		0.3	1.12			106.4		0.4	1.43
Residential Mortgage		4,343.3		34.9	3.21			4,293.6		33.9	3.16			4,146.6		35.9	3.46
Home Equity		1,898.9		13.3	2.83			1,757.8		12.8	2.88			1,594.1		12.6	3.20
Automobile		737.4		5.9	3.23			730.2		6.1	3.34			708.3		6.1	3.51
Other 3		403.7		5.5	5.47			397.8		5.8	5.79			382.6		6.4	6.75
Total Loans and Leases		12,290.4		94.6	3.10			12,086.7		97.9	3.22			11,952.6		99.3	3.35
Other		36.7		0.2	2.21			34.4		0.2	2.05			33.4		0.2	2.21
Total Earning Assets 4		21,588.8		130.9	2.44			21,547.1		132.6	2.45			20,010.1		129.0	2.60
Cash and Due from Banks		233.3						231.3						270.7
Other Assets		1,025.4						887.9						869.9
Total Assets	$	22,847.5					$	22,666.3					$	21,150.7
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand		4,655.4		0.5	0.04			4,685.7		0.7	0.06			4,186.4		0.6	0.06
Savings		7,540.6		1.1	0.06			7,443.2		1.2	0.06			7,016.6		1.5	0.09
Time		971.5		0.8	0.34			1,019.2		1.0	0.40			1,630.0		2.2	0.56
Total Interest-Bearing Deposits		13,167.5		2.4	0.07			13,148.1		2.9	0.09			12,833.0		4.3	0.14
Short-Term Borrowings		6.8		-	0.11			18.5		-	0.13			2.4		-	0.09
Securities Sold Under Agreements to Repurchase		450.5		2.8	2.46			450.5		2.8	2.46			600.5		3.6	2.35
Other Debt		10.4		0.2	7.05			10.4		0.2	7.05			60.5		0.3	2.22
Total Interest-Bearing Liabilities		13,635.2		5.4	0.16			13,627.5		5.9	0.17			13,496.4		8.2	0.24
Net Interest Income			$	125.5					$	126.7					$	120.8
Interest Rate Spread					2.28	%					2.28	%					2.36	%
Net Interest Margin					2.34	%					2.34	%					2.43	%
Noninterest-Bearing Demand Deposits		7,258.6						7,074.4						5,832.2
Other Liabilities		385.0						373.8						444.8
Shareholders' Equity		1,568.7						1,590.6						1,377.3
Total Liabilities and Shareholders' Equity	$	22,847.5					$	22,666.3					$	21,150.7
1 Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2 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.
3 Comprised of other consumer revolving credit, installment, and consumer lease financing.
4 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $254,000, $280,000, and $252,000 for the three months ended March 31, 2022, December 31, 2021, and March 31, 2021, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8a
		Three Months Ended March 31, 2022
		Compared to December 31, 2021
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Investment Securities
Available-for-Sale
Taxable		$	0.3			$	1.0			$	1.3
Non-Taxable			(0.1	)			-				(0.1	)
Held-to-Maturity
Taxable			(0.7	)			1.2				0.5
Non-Taxable			(0.1	)			-				(0.1	)
Total Investment Securities			(0.6	)			2.2				1.6
Loans and Leases
Commercial and Industrial			(2.3	)			(1.5	)			(3.8	)
Commercial Mortgage			0.3				(0.8	)			(0.5	)
Construction			(0.2	)			0.1				(0.1	)
Commercial Lease Financing			-				0.1				0.1
Residential Mortgage			0.4				0.6				1.0
Home Equity			0.8				(0.3	)			0.5
Automobile			0.1				(0.3	)			(0.2	)
Other 2			0.1				(0.4	)			(0.3	)
Total Loans and Leases			(0.8	)			(2.5	)			(3.3	)
Total Change in Interest Income			(1.4	)			(0.3	)			(1.7	)
Change in Interest Expense:
Interest-Bearing Deposits
Demand			-				(0.2	)			(0.2	)
Savings			-				(0.1	)			(0.1	)
Time			(0.1	)			(0.1	)			(0.2	)
Total Interest-Bearing Deposits			(0.1	)			(0.4	)			(0.5	)
Securities Sold Under Agreements to Repurchase			0.1				(0.1	)			-
Total Change in Interest Expense			-				(0.5	)			(0.5	)
Change in Net Interest Income		$	(1.4	)		$	0.2			$	(1.2	)
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, 2022
		Compared to March 31, 2021
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	(0.1	)		$	0.1			$	-
Investment Securities
Available-for-Sale
Taxable			1.5				(0.2	)			1.3
Non-Taxable			(0.1	)			-				(0.1	)
Held-to-Maturity
Taxable			4.8				0.7				5.5
Total Investment Securities			6.2				0.5				6.7
Loans Held for Sale			(0.1	)			-				(0.1	)
Loans and Leases
Commercial and Industrial			(6.0	)			2.5				(3.5	)
Commercial Mortgage			2.2				(1.8	)			0.4
Construction			(0.3	)			0.1				(0.2	)
Commercial Lease Financing			0.1				(0.1	)			-
Residential Mortgage			1.7				(2.7	)			(1.0	)
Home Equity			2.2				(1.5	)			0.7
Automobile			0.3				(0.5	)			(0.2	)
Other 2			0.3				(1.2	)			(0.9	)
Total Loans and Leases			0.5				(5.2	)			(4.7	)
Total Change in Interest Income			6.5				(4.6	)			1.9
Change in Interest Expense:
Interest-Bearing Deposits
Demand			0.1				(0.2	)			(0.1	)
Savings			0.1				(0.5	)			(0.4	)
Time			(0.7	)			(0.7	)			(1.4	)
Total Interest-Bearing Deposits			(0.5	)			(1.4	)			(1.9	)
Securities Sold Under Agreements to Repurchase			(1.0	)			0.2				(0.8	)
Other Debt			(0.4	)			0.3				(0.1	)
Total Change in Interest Expense			(1.9	)			(0.9	)			(2.8	)
Change in Net Interest Income		$	8.4			$	(3.7	)		$	4.7
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)		2022			2021			2021
Salaries		$	34,932		$	35,758		$	31,569
Incentive Compensation			6,111			6,699			5,914
Share-Based Compensation			3,799			3,396			2,584
Commission Expense			1,641			2,094			2,436
Retirement and Other Benefits			4,693			4,661			5,517
Payroll Taxes			4,944			2,585			3,968
Medical, Dental, and Life Insurance			3,234			3,981			2,424
Separation Expense			570			260			1,839
Total Salaries and Benefits		$	59,924		$	59,434		$	56,251

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)	2022		2021		2021		2021		2021
Commercial
Commercial and Industrial	$	1,354,757	$	1,361,921	$	1,325,446	$	1,257,305	$	1,288,496
PPP 1		57,809		126,779		268,480		513,513		725,485
Commercial Mortgage		3,257,689		3,152,130		2,994,520		2,944,435		2,859,246
Construction		248,363		220,254		296,052		277,393		281,164
Lease Financing		98,107		105,108		107,526		110,500		104,980
Total Commercial		5,016,725		4,966,192		4,992,024		5,103,146		5,259,371
Consumer
Residential Mortgage		4,405,718		4,309,602		4,272,540		4,264,180		4,216,976
Home Equity		1,958,285		1,836,588		1,680,229		1,594,781		1,577,500
Automobile		742,934		736,565		727,234		714,729		710,407
Other 2		420,830		410,129		400,723		364,542		376,449
Total Consumer		7,527,767		7,292,884		7,080,726		6,938,232		6,881,332
Total Loans and Leases	$	12,544,492	$	12,259,076	$	12,072,750	$	12,041,378	$	12,140,703
Deposits
	March 31,		December 31,		September 30,		June 30,		March 31,
(dollars in thousands)	2022		2021		2021		2021		2021
Consumer	$	10,654,192	$	10,438,844	$	10,150,199	$	9,848,285	$	9,746,713
Commercial		8,818,477		8,641,932		8,767,733		8,675,909		8,241,102
Public and Other		1,243,618		1,279,332		1,575,746		1,645,515		1,568,836
Total Deposits	$	20,716,287	$	20,360,108	$	20,493,678	$	20,169,709	$	19,556,651
1 The PPP amounts presented, which are reported net of deferred costs and fees, were previously included as a component of the Commercial and Industrial loan class.
2 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)	2022			2021			2021			2021			2021
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial	$	99		$	243		$	209		$	258		$	293
Commercial Mortgage		8,065			8,205			8,309			8,413			8,503
Total Commercial		8,164			8,448			8,518			8,671			8,796
Consumer
Residential Mortgage		3,845			3,305			4,348			2,437			1,804
Home Equity		5,638			4,881			5,422			5,534			4,951
Total Consumer		9,483			8,186			9,770			7,971			6,755
Total Non-Accrual Loans and Leases		17,647			16,634			18,288			16,642			15,551
Foreclosed Real Estate		2,332			2,332			2,332			2,332			2,332
Total Non-Performing Assets	$	19,979		$	18,966		$	20,620		$	18,974		$	17,883
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial		22			-			-			-			9
Total Commercial		22			-			-			-			9
Consumer
Residential Mortgage		4,113			3,159			4,776			4,069			4,069
Home Equity		2,722			3,456			2,946			4,498			4,906
Automobile		504			729			395			277			604
Other 1		649			426			593			434			828
Total Consumer		7,988			7,770			8,710			9,278			10,407
Total Accruing Loans and Leases Past Due 90 Days or More	$	8,010		$	7,770		$	8,710		$	9,278		$	10,416
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More	$	54,136		$	60,519		$	62,787		$	74,926		$	74,216
Total Loans and Leases	$	12,544,492		$	12,259,076		$	12,072,750		$	12,041,378		$	12,140,703
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases		0.14	%		0.14	%		0.15	%		0.14	%		0.13	%
Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate		0.16	%		0.15	%		0.17	%		0.16	%		0.15	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans
and Leases and Commercial Foreclosed Real Estate		0.16	%		0.17	%		0.17	%		0.17	%		0.17	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate		0.16	%		0.14	%		0.17	%		0.15	%		0.13	%
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		0.22	%		0.22	%		0.24	%		0.23	%		0.23	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter	$	18,966		$	20,620		$	18,974		$	17,883		$	18,481
Additions		2,243			357			3,171			2,229			2,992
Reductions
Payments		(1,230	)		(972	)		(889	)		(722	)		(2,481	)
Return to Accrual Status		-			(1,038	)		(606	)		(416	)		(1,014	)
Charge-offs/Write-downs		-			(1	)		(30	)		-			(95	)
Total Reductions		(1,230	)		(2,011	)		(1,525	)		(1,138	)		(3,590	)
Balance at End of Quarter	$	19,979		$	18,966		$	20,620		$	18,974		$	17,883
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)		2022				2021				2021
Balance at Beginning of Period		$	164,297			$	174,708				221,303
Loans and Leases Charged-Off
Commercial
Commercial and Industrial			(349	)			(217	)			(248	)
Consumer
Residential Mortgage			-				-				(4	)
Home Equity			(68	)			(5	)			(16	)
Automobile			(1,530	)			(1,045	)			(2,109	)
Other 1			(1,961	)			(2,007	)			(3,914	)
Total Loans and Leases Charged-Off			(3,908	)			(3,274	)			(6,291	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial			369				132				112
Consumer
Residential Mortgage			54				858				955
Home Equity			515				390				533
Automobile			739				476				919
Other 1			745				746				856
Total Recoveries on Loans and Leases Previously Charged-Off			2,422				2,602				3,375
Net Charged-Off - Loans and Leases			(1,486	)			(672	)			(2,916	)
Net Charged-Off - Accrued Interest Receivable			(47	)			(39	)			(308	)
Provision for Credit Losses:
Loans and Leases			(4,307	)			(9,427	)			(14,993	)
Accrued Interest Receivable			(367	)			(214	)			-
Unfunded Commitments			(826	)			(59	)			693
Balance at End of Period 2		$	157,264			$	164,297			$	203,779
Components
Allowance for Credit Losses - Loans and Leases			152,028				157,821				198,343
Allowance for Credit Losses - Accrued Interest Receivable			-				414				2,392
Reserve for Unfunded Commitments			5,236				6,062				3,044
Total Reserve for Credit Losses		$	157,264			$	164,297			$	203,779
Average Loans and Leases Outstanding		$	12,290,402			$	12,086,705			$	11,952,587
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)			0.05	%			0.02	%			0.10	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 3			1.21	%			1.29	%			1.63	%
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.
3 The numerator comprises the Allowance for Credit Losses - Loans and Leases.

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information														Table 13
		Consumer				Commercial				Treasury				Consolidated
(dollars in thousands)		Banking				Banking				and Other				Total
Three Months Ended March 31, 2022
Net Interest Income		$	70,235			$	46,349			$	8,679			$	125,263
Provision for Credit Losses			1,683				(197	)			(6,986	)			(5,500	)
Net Interest Income After Provision for Credit Losses			68,552				46,546				15,665				130,763
Noninterest Income			31,969				10,198				1,384				43,551
Noninterest Expense			(81,698	)			(18,669	)			(3,507	)			(103,874	)
Income Before Income Taxes			18,823				38,075				13,542				70,440
Provision for Income Taxes			(4,710	)			(9,197	)			(1,699	)			(15,606	)
Net Income		$	14,113			$	28,878			$	11,843			$	54,834
Total Assets as of March 31, 2022		$	7,900,273			$	5,174,115			$	9,925,929			$	23,000,317
Three Months Ended March 31, 2021
Net Interest Income		$	69,762			$	47,143			$	3,664			$	120,569
Provision for Credit Losses			2,866				50				(17,216	)			(14,300	)
Net Interest Income After Provision for Credit Losses			66,896				47,093				20,880				134,869
Noninterest Income			33,698				7,858				1,414				42,970
Noninterest Expense			(78,181	)			(15,677	)			(5,007	)			(98,865	)
Income Before Income Taxes			22,413				39,274				17,287				78,974
Provision for Income Taxes			(5,474	)			(9,558	)			(3,993	)			(19,025	)
Net Income		$	16,939			$	29,716			$	13,294			$	59,949
Total Assets as of March 31, 2021		$	7,556,756			$	5,224,386			$	9,166,129			$	21,947,271

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)		2022				2021				2021				2021				2021
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases		$	94,439			$	97,853			$	100,570			$	100,894			$	99,299
Income on Investment Securities
Available-for-Sale			17,100				15,850				16,396				16,467				15,837
Held-to-Maturity			18,701				18,325				16,754				13,576				13,300
Deposits			4				1				2				-				7
Funds Sold			127				104				382				260				137
Other			202				176				159				182				185
Total Interest Income			130,573				132,309				134,263				131,379				128,765
Interest Expense
Deposits			2,353				2,898				3,837				4,152				4,329
Securities Sold Under Agreements to Repurchase			2,772				2,834				3,423				3,470				3,533
Funds Purchased			2				6				-				-				1
Other Debt			183				183				184				243				333
Total Interest Expense			5,310				5,921				7,444				7,865				8,196
Net Interest Income			125,263				126,388				126,819				123,514				120,569
Provision for Credit Losses			(5,500	)			(9,700	)			(10,400	)			(16,100	)			(14,300	)
Net Interest Income After Provision for Credit Losses			130,763				136,088				137,219				139,614				134,869
Noninterest Income
Trust and Asset Management			11,276				11,693				11,415				11,682				11,278
Mortgage Banking			2,740				2,908				3,136				3,058				5,862
Service Charges on Deposit Accounts			7,272				6,861				6,510				6,065				6,128
Fees, Exchange, and Other Service Charges			12,952				14,439				13,604				13,807				13,607
Investment Securities Gains (Losses), Net			(1,545	)			(1,258	)			(1,259	)			2,423				(1,203	)
Annuity and Insurance			791				876				735				911				702
Bank-Owned Life Insurance			2,349				1,907				1,897				2,063				1,917
Other			7,716				5,148				5,340				4,422				4,679
Total Noninterest Income			43,551				42,574				41,378				44,431				42,970
Noninterest Expense
Salaries and Benefits			59,924				59,434				56,447				56,161				56,251
Net Occupancy			9,826				9,028				3,079				5,047				9,090
Net Equipment			9,153				9,105				8,924				8,796				8,878
Data Processing			4,560				4,696				4,722				4,557				6,322
Professional Fees			3,258				3,427				2,948				3,114				3,406
FDIC Insurance			1,502				1,619				1,594				1,669				1,654
Other			15,651				14,369				18,805				17,183				13,264
Total Noninterest Expense			103,874				101,678				96,519				96,527				98,865
Income Before Provision for Income Taxes			70,440				76,984				82,078				87,518				78,974
Provision for Income Taxes			15,606				13,147				20,025				19,985				19,025
Net Income		$	54,834			$	63,837			$	62,053			$	67,533			$	59,949
Preferred Stock Dividends			1,969				1,969				1,006				-				-
Net Income Available to Common Shareholders		$	52,865			$	61,868			$	61,047			$	67,533			$	59,949
Basic Earnings Per Common Share		$	1.33			$	1.56			$	1.53			$	1.69			$	1.51
Diluted Earnings Per Common Share		$	1.32			$	1.55			$	1.52			$	1.68			$	1.50
Balance Sheet Totals
Loans and Leases		$	12,544,492			$	12,259,076			$	12,072,750			$	12,041,378			$	12,140,703
Total Assets			23,000,317				22,784,941				22,965,383				22,672,183				21,947,271
Total Deposits			20,716,287				20,360,108				20,493,678				20,169,709				19,556,651
Total Shareholders' Equity			1,448,885				1,611,611				1,597,109				1,583,531				1,360,221
Performance Ratios
Return on Average Assets			0.97		%		1.12		%		1.07		%		1.23		%		1.15		%
Return on Average Shareholders' Equity			14.18				15.92				15.41				19.17				17.65
Return on Average Common Equity			15.44				17.40				17.08				19.61				17.65
Efficiency Ratio 1			61.53				60.18				57.38				57.47				60.45
Net Interest Margin 2			2.34				2.34				2.32				2.37				2.43
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, 2022				December 31, 2021						December 31, 2020
Hawaii Economic Trends
State General Fund Revenues 1	$	1,543.9	41.1	%	$	8,147.0			27.0	%	$	6,415.1		(12.3	)	%
General Excise and Use Tax Revenue 1		706.6	27.8			3,604.3			18.6			3,038.8		(15.6	)
Jobs 2		644.3				642.6						594.4
									March 31,		December 31,
									2022		2021			2020
Unemployment, seasonally adjusted 3
Statewide									4.1	%		4.3	%	9.8		%
Honolulu County									4.0			4.1		8.9
Hawaii County									4.0			4.1		9.2
Maui County									4.8			5.1		13.7
Kauai County									4.6			5.9		13.5
					March 31,				December 31,
(percentage change, except months of inventory)					2022				2021		2020			2019
Housing Trends (Single Family Oahu) 4
Median Home Price						20.2		%	19.3	%		5.2	%	(0.1	)	%
Home Sales Volume (units)						(2.6	)	%	17.9	%		2.3	%	3.9		%
Months of Inventory						1.0			0.8			1.4		2.5
					Monthly Visitor Arrivals,						Percentage Change
(in thousands)					Not Seasonally Adjusted						from Previous Year
Tourism 5
February 28, 2022									623.7					165.1		%
January 31, 2022									567.2					229.8
December 31, 2021									753.7					219.6
November 30, 2021									613.4					233.8
October 31, 2021									550.8					618.2
September 30, 2021									505.9					2,647.9
August 31, 2021									722.4					2,993.0
July 31, 2021									879.6					3,798.4
June 30, 2021									791.1					4,534.7
May 31, 2021									629.7					6,807.4
April 30, 2021									484.1					10,506.3
March 31, 2021									439.8					1.1
February 28, 2021									235.3					(71.6	)
January 31, 2021									172.0					(80.1	)
December 31, 2020									235.8					(75.2	)
November 30, 2020									183.8					(77.3	)
October 31, 2020									76.7					(90.4	)
September 30, 2020									18.4					(97.5	)
August 31, 2020									23.4					(97.5	)
July 31, 2020									22.6					(97.7	)
June 30, 2020									17.1					(98.2	)
May 31, 2020									9.1					(98.9	)
April 30, 2020									4.6					(99.5	)
March 31, 2020									434.9					(53.7	)
February 29, 2020									828.1					5.8
January 31, 2020									862.6					5.1
1 Source: Hawaii Department of Business, Economic Development & Tourism
2 Source: U.S. Bureau of Labor Statistics
3 Source: University of Hawaii Economic Research Organization (UHERO)
4 Source: Honolulu Board of Realtors
5 Source: Hawaii Tourism Authority

 

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