Bank of Hawai‘i Corporation Third Quarter 2023 Financial Results

Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $1.17 for the third quarter of 2023, compared with diluted earnings per common share of $1.12 in the previous quarter and $1.28 in the same quarter of 2022. Net income for the third quarter of 2023 was $47.9 million, up 4.0% from the previous quarter and down 9.3% from the same quarter of 2022. The return on average common equity for the third quarter of 2023 was 15.38% compared with 14.95% in the previous quarter and 16.98% in the same quarter of 2022.

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“Bank of Hawai‘i delivered another quarter of solid financial results,” said Peter Ho, Chairman, President, and CEO. “Total deposits were up 1.4% linked quarter, and average deposits were up by 2.4%, driven by growth in core relationship deposits. Our credit quality remained strong, with non-performing assets of 0.08% at quarter end and net charge offs of 0.06% in the quarter. NIM declined modestly by 9 basis points, while our core noninterest income and operating expense remained steady. Finally, one of our key priorities this quarter was to support our clients, employees, and community as we coped with the tragic situation in Maui. Taking care of our community has always been a fundamental priority and we will continue to support our community as we build a stronger Maui.”

Financial Highlights

Net interest income for the third quarter of 2023 was $120.9 million, a decrease of 2.7% from the previous quarter and a decrease of 14.6% from the same quarter of 2022. The decrease in net interest income in the third quarter of 2023 was primarily due to higher funding costs, partially offset by higher earning asset yields.

Net interest margin was 2.13% in the third quarter of 2023, a decrease of 9 basis points from the previous quarter and 47 basis points from the same quarter of 2022. The decrease in net interest margin was due to higher funding costs and increased liquidity, partially offset by higher earning asset yields.

The average yield on loans and leases was 4.34% in the third quarter of 2023, up 15 basis points from the prior quarter and up 85 basis points from the same quarter of 2022. The average yield on total earning assets was 3.72% in the third quarter of 2023, up 16 basis points from the prior quarter and up 88 basis points from the same quarter of 2022. The average cost of interest-bearing deposits was 1.95% in the third quarter of 2023, up 41 basis points from the prior quarter and up 165 basis points from the same quarter of 2022. The average cost of total deposits, including noninterest-bearing deposits, was 1.40%, up 32 basis points from the prior quarter and up 120 basis points from the same quarter of 2022. The changes in yields and rates over the linked quarter and year over year period reflected the higher rate environment, including higher benchmark interest rates.

Noninterest income was $50.3 million in the third quarter of 2023, an increase of 16.4% from the previous quarter and an increase of 64.2% from the same period in 2022. Noninterest income in the third quarter of 2023 included a $14.7 million gain from the early termination of private repurchase agreements, partially offset by a $4.6 million net loss related to investment securities sales and a negative $0.8 million adjustment related to a change in the Visa Class B conversion ratio. Noninterest income in the second quarter of 2023 included $1.5 million from the sale of a low-income housing tax credit investment. Noninterest income in the third quarter of 2022 included a one-time pre-tax charge of $6.9 million related to our agreement to sell assets that terminated certain leveraged leases and a negative $0.9 million adjustment related to a change in the Visa Class B conversion ratio. Adjusted for these items, noninterest income in the third quarter of 2023 was $41.0 million, down 1.6% from adjusted noninterest income in the previous quarter, and up 6.6% from adjusted noninterest income in the same period in 2022.

Noninterest expense was $105.6 million in the third quarter of 2023, an increase of 1.5% from the previous quarter and a decrease of 0.1% from the same quarter of 2022. Noninterest expense in the third quarter of 2023 included separation expenses of $2.1 million and extraordinary expenses related to the Maui wildfires of $0.4 million. Noninterest expense in the third quarter of 2022 included $1.8 million in separation expenses. Adjusted noninterest expense in the third quarter of 2023 was $103.1 million, down 0.9% from the previous quarter and down 0.8% from adjusted noninterest expense in the same period in 2022.

The effective tax rate for the third quarter of 2023 was 24.76% compared with 24.57% in the previous quarter and 20.68% during the same quarter of 2022. The increase in the effective tax rate on a linked quarter basis was mainly due to a decrease in benefits from tax credit investments from the second quarter. The year over year increase was primarily due to tax benefits in the third quarter of 2022 related to the aforementioned agreement to sell assets that terminated certain leveraged leases.

Asset Quality

The Company’s overall asset quality remained strong during the third quarter of 2023. Provision for credit losses for the third quarter of 2023 was $2.0 million compared with $2.5 million in the previous quarter. The Company had no provision for credit loss in the third quarter of 2022.

Total non-performing assets were $11.5 million at September 30, 2023, flat from June 30, 2023 and down $2.3 million from September 30, 2022. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.08% at the end of the quarter, flat from the end of the prior quarter and a decrease of 2 basis points from the same quarter of 2022.

Net loan and lease charge-offs during the third quarter of 2023 were $2.0 million or 6 basis points annualized of total average loans and leases outstanding. Net loan and lease charge-offs for the third quarter of 2023 were comprised of charge-offs of $3.6 million partially offset by recoveries of $1.6 million. Compared to the prior quarter, net loan and lease charge-offs increased by $0.7 million or 2 basis points annualized on total average loans and leases outstanding. Compared to the same quarter of 2022, net loan and lease charge-offs increased by $0.9 million or 3 basis points annualized on total average loans and leases outstanding.

The allowance for credit losses on loans and leases was $145.3 million at September 30, 2023, a decrease of $0.1 million from June 30, 2023 and a decrease of $1.2 million from September 30, 2022. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.04% at the end of the quarter, flat from the end of the prior quarter and down 6 basis points from the same quarter of 2022.

Balance Sheet

Total assets were $23.5 billion at September 30, 2023, a decrease of 5.6% from June 30, 2023 and an increase of 1.8% from September 30, 2022. The decrease from the prior quarter was primarily due to a decrease in funds sold. The increase from the same period in 2022 was primarily due to an increase in our loans and leases.

Total funds sold and cash and due from banks was $0.6 billion at September 30, 2023, a decrease of $1.0 billion from June 30, 2023 and flat from September 30, 2022. The decrease was primarily due to termination of $1.8 billion of wholesale funding during the quarter, including Federal Home Loan Bank advances and private repurchase agreements.

The investment securities portfolio was $7.5 billion at September 30, 2023, a decrease of 5.0% from June 30, 2023 and a decrease of 5.2% from September 30, 2022. These decreases were due to sales of $159.1 million of investment securities during the quarter and cashflows from the portfolio not being reinvested into securities. The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.

Total loans and leases were $13.9 billion at September 30, 2023, flat from June 30, 2023 and an increase of 4.5% from September 30, 2022. Total commercial loans were $5.7 billion at September 30, 2023, an increase of 1.2% from the prior quarter and an increase of 7.3% from the same quarter of 2022. The increase from the same period in 2022 was primarily due to increases in our commercial mortgage and commercial and industrial portfolios. Total consumer loans were $8.2 billion as of September 30, 2023, a decrease of 0.8% from the prior quarter and an increase of 2.7% from the same period in 2022. The increase from the same period in 2022 was primarily driven by increases in our residential mortgage and home equity portfolios.

Total deposits were $20.8 billion at September 30, 2023, an increase of 1.4% from June 30, 2023 and a decrease of 0.4% from September 30, 2022. Noninterest-bearing deposits made up 27% of total deposit balances as of September 30, 2023, down from 29% as of June 30, 2023, and down from 35% as of September 30, 2022. Average deposits were $20.5 billion for the third quarter of 2023, up 2.4% from $20.0 billion in the prior quarter, and down 1.8% from $20.9 billion in the third quarter of 2022. As of September 30, 2023, insured and uninsured but collateralized deposits represent 58% of total deposit balances, down from 61% as of June 30, 2023, and up from 56% as of September 30, 2022. As of September 30, 2023, our readily available liquidity of $9.6 billion exceeded total uninsured and uncollateralized deposits.

Capital and Dividends

The Company’s capital levels increased quarter over quarter and remain well above regulatory well-capitalized minimums.

The Tier 1 Capital Ratio was 12.53% at September 30, 2023 compared with 12.21% at June 30, 2023 and 12.72% at September 30, 2022. The Tier 1 Leverage Ratio was 7.22% at September 30, 2023, up 1 basis point from 7.21% at June 30, 2023 and down 6 basis points from 7.28% at September 30, 2022. The increases from the prior quarter were due to an increase in Tier 1 capital as a result of retained earnings growth and a decrease in risk-weighted assets. The decreases from the same period in 2022 were due to an increase in risk-weighted assets and average total assets, as a result of loan growth over the period.

No shares of common stock were repurchased under the share repurchase program in the third quarter of 2023. Total remaining buyback authority under the share repurchase program was $126.0 million at September 30, 2023.

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 December 14, 2023 to shareholders of record at the close of business on November 30, 2023.

On October 5, 2023, the Company announced that 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 November 1, 2023 to shareholders of record of the preferred stock as of the close of business on October 17, 2023.

Conference Call Information

The Company will review its third quarter financial results today at 8:00 a.m. Hawai‘i 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 Hawai‘i Corporation's website, www.boh.com. The webcast can be accessed via the link: https://register.vevent.com/register/BId0e4643fbbd64cdfae5f15202d1ffbb .... A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawai‘i Time on Monday, October 23, 2023. The replay will be available on the Company's website, www.boh.com.

Investor Announcements

Investors and others should note that the Company intends to announce financial and other information to the Company’s investors using the Company’s investor relations website at https://ir.boh.com, social media channels, press releases, SEC filings and public conference calls and webcasts, all for purposes of complying with the Company’s disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, as information is updated, and new information is posted.

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 Hawai‘i Corporation's Annual Report on Form 10-K for the year ended December 31, 2022 and its Form 10-Q for the fiscal quarter ended March 31, 2023 and June 30, 2023, which were 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 Hawai‘i Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawai‘i and the West Pacific. The Company's principal subsidiary, Bank of Hawai‘i, was founded in 1897. For more information about Bank of Hawai‘i Corporation, see the Company’s website, www.boh.com. Bank of Hawai‘i Corporation is a trade name of Bank of Hawaii Corporation.

Bank of Hawai‘i Corporation and Subsidiaries
Financial Highlights																		Table 1
		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,
(dollars in thousands, except per share amounts)		2023				2023				2022				2023				2022
For the Period:
Operating Results
Net Interest Income		$	120,937			$	124,348			$	141,655			$	381,240			$	399,820
Provision for Credit Losses			2,000				2,500				-				6,500				(8,000	)
Total Noninterest Income			50,334				43,255				30,660				134,326				116,369
Total Noninterest Expense			105,601				104,036				105,749				321,556				312,562
Pre-Provision Net Revenue			65,670				63,567				66,566				194,010				203,627
Net Income			47,903				46,061				52,801				140,806				164,497
Net Income Available to Common Shareholders			45,934				44,092				50,832				134,899				158,590
Basic Earnings Per Common Share			1.17				1.12				1.28				3.44				4.00
Diluted Earnings Per Common Share			1.17				1.12				1.28				3.42				3.98
Dividends Declared Per Common Share			0.70				0.70				0.70				2.10				2.10
Performance Ratios
Return on Average Assets			0.78	%			0.77	%			0.91	%			0.78	%			0.96	%
Return on Average Shareholders' Equity			13.92				13.55				15.31				13.91				15.25
Return on Average Common Equity			15.38				14.95				16.98				15.37				16.81
Efficiency Ratio 1			61.66				62.07				61.37				62.37				60.55
Net Interest Margin 2			2.13				2.22				2.60				2.27				2.47
Dividend Payout Ratio 3			59.83				62.50				54.69				61.05				52.50
Average Shareholders' Equity to Average Assets			5.60				5.65				5.91				5.61				6.28
Average Balances
Average Loans and Leases		$	13,903,214			$	13,876,754			$	13,126,717			$	13,833,164			$	12,709,045
Average Assets			24,387,421				24,114,443				23,135,820				24,124,360				22,959,246
Average Deposits			20,492,082				20,018,601				20,863,681				20,314,079				20,621,310
Average Shareholders' Equity			1,365,143				1,363,059				1,367,946				1,353,815				1,441,706
Per Share of Common Stock
Book Value		$	29.78			$	29.66			$	27.55			$	29.78			$	27.55
Tangible Book Value			28.99				28.87				26.76				28.99				26.76
Market Value
Closing			49.69				41.23				76.12				49.69				76.12
High			58.63				52.37				85.45				81.73				92.38
Low			39.02				30.83				70.89				30.83				70.89
						September 30,				June 30,				December 31,				September 30,
						2023				2023				2022				2022
As of Period End:
Balance Sheet Totals
Loans and Leases						$	13,919,491			$	13,914,889			$	13,646,420			$	13,321,606
Total Assets							23,549,785				24,947,936				23,606,877				23,134,040
Total Deposits							20,802,309				20,508,615				20,615,696				20,888,773
Other Debt							560,217				1,760,243				410,294				10,319
Total Shareholders' Equity							1,363,840				1,358,279				1,316,995				1,282,384
Asset Quality
Non-Performing Assets						$	11,519			$	11,477			$	12,647			$	13,868
Allowance for Credit Losses - Loans and Leases							145,263				145,367				144,439				146,436
Allowance to Loans and Leases Outstanding 4							1.04	%			1.04	%			1.06	%			1.10	%
Capital Ratios 5
Common Equity Tier 1 Capital Ratio							11.29	%			11.00	%			10.92	%			11.42	%
Tier 1 Capital Ratio							12.53				12.21				12.15				12.72
Total Capital Ratio							13.56				13.24				13.17				13.82
Tier 1 Leverage Ratio							7.22				7.21				7.37				7.28
Total Shareholders' Equity to Total Assets							5.79				5.44				5.58				5.54
Tangible Common Equity to Tangible Assets 6							4.90				4.60				4.69				4.64
Tangible Common Equity to Risk-Weighted Assets 6							8.10				7.97				7.76				7.97
Non-Financial Data
Full-Time Equivalent Employees							1,919				2,025				2,076				2,115
Branches							51				51				51				51
ATMs							320				320				320				316

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 September 30, 2023 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 Hawai‘i Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures														Table 2
		September 30,				June 30,				December 31,				September 30,
(dollars in thousands)		2023				2023				2022				2022
Total Shareholders' Equity		$	1,363,840			$	1,358,279			$	1,316,995			$	1,282,384
Less: Preferred Stock			180,000				180,000				180,000				180,000
Goodwill			31,517				31,517				31,517				31,517
Tangible Common Equity		$	1,152,323			$	1,146,762			$	1,105,478			$	1,070,867
Total Assets		$	23,549,785			$	24,947,936			$	23,606,877			$	23,134,040
Less: Goodwill			31,517				31,517				31,517				31,517
Tangible Assets		$	23,518,268			$	24,916,419			$	23,575,360			$	23,102,523
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements 1		$	14,222,825			$	14,391,943			$	14,238,798			$	13,428,188
Total Shareholders' Equity to Total Assets			5.79	%			5.44	%			5.58	%			5.54	%
Tangible Common Equity to Tangible Assets (Non-GAAP)			4.90	%			4.60	%			4.69	%			4.64	%
Tier 1 Capital Ratio 1			12.53	%			12.21	%			12.15	%			12.72	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1			8.10	%			7.97	%			7.76	%			7.97	%

1

Regulatory capital ratios as of September 30, 2023 are preliminary.

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Income																		Table 3
		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,
(dollars in thousands, except per share amounts)		2023				2023				2022				2023				2022
Interest Income
Interest and Fees on Loans and Leases		$	151,245			$	144,541			$	115,013			$	432,287			$	311,115
Income on Investment Securities
Available-for-Sale			23,552				23,301				16,995				70,746				52,079
Held-to-Maturity			22,838				23,375				20,243				70,161				57,782
Deposits			18				18				10				63				19
Funds Sold			12,828				6,395				2,335				22,589				3,181
Other			1,464				2,121				322				4,182				877
Total Interest Income			211,945				199,751				154,918				600,028				425,053
Interest Expense
Deposits			72,153				53,779				10,296				163,726				16,184
Securities Sold Under Agreements to Repurchase			4,034				5,436				2,745				14,847				8,311
Funds Purchased			-				184				40				888				99
Short-Term Borrowings			-				2,510				-				5,713				92
Other Debt			14,821				13,494				182				33,614				547
Total Interest Expense			91,008				75,403				13,263				218,788				25,233
Net Interest Income			120,937				124,348				141,655				381,240				399,820
Provision for Credit Losses			2,000				2,500				-				6,500				(8,000	)
Net Interest Income After Provision for Credit Losses			118,937				121,848				141,655				374,740				407,820
Noninterest Income
Trust and Asset Management			10,548				11,215				10,418				32,453				33,151
Mortgage Banking			1,059				1,176				1,002				3,239				4,989
Service Charges on Deposit Accounts			7,843				7,587				7,526				23,167				22,107
Fees, Exchange, and Other Service Charges			13,824				14,150				13,863				41,782				41,008
Investment Securities Losses, Net			(6,734	)			(1,310	)			(2,147	)			(9,836	)			(4,987	)
Annuity and Insurance			1,156				1,038				1,034				3,465				2,695
Bank-Owned Life Insurance			2,749				2,876				2,486				8,467				7,493
Other			19,889				6,523				(3,522	)			31,589				9,913
Total Noninterest Income			50,334				43,255				30,660				134,326				116,369
Noninterest Expense
Salaries and Benefits			58,825				56,175				59,938				180,088				177,631
Net Occupancy			10,327				9,991				10,186				30,190				29,942
Net Equipment			9,477				10,573				9,736				30,425				28,432
Data Processing			4,706				4,599				4,616				13,888				13,783
Professional Fees			3,846				4,651				3,799				12,380				10,599
FDIC Insurance			3,361				3,173				1,680				9,768				4,772
Other			15,059				14,874				15,794				44,817				47,403
Total Noninterest Expense			105,601				104,036				105,749				321,556				312,562
Income Before Provision for Income Taxes			63,670				61,067				66,566				187,510				211,627
Provision for Income Taxes			15,767				15,006				13,765				46,704				47,130
Net Income		$	47,903			$	46,061			$	52,801			$	140,806			$	164,497
Preferred Stock Dividends			1,969				1,969				1,969				5,908				5,908
Net Income Available to Common Shareholders		$	45,934			$	44,092			$	50,832			$	134,898			$	158,589
Basic Earnings Per Common Share		$	1.17			$	1.12			$	1.28			$	3.44			$	4.00
Diluted Earnings Per Common Share		$	1.17			$	1.12			$	1.28			$	3.42			$	3.98
Dividends Declared Per Common Share		$	0.70			$	0.70			$	0.70			$	2.10			$	2.10
Basic Weighted Average Common Shares			39,274,626				39,241,559				39,567,047				39,264,450				39,670,409
Diluted Weighted Average Common Shares			39,420,531				39,317,521				39,758,209				39,392,433				39,848,795

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)																		Table 4
		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,
(dollars in thousands)		2023				2023				2022				2023				2022
Net Income		$	47,903			$	46,061			$	52,801			$	140,806			$	164,497
Other Comprehensive Loss, Net of Tax:
Net Unrealized Losses on Investment Securities			(18,264	)			(18,217	)			(79,600	)			(7,205	)			(382,371	)
Defined Benefit Plans			84				84				354				252				1,059
Other Comprehensive Loss			(18,180	)			(18,133	)			(79,246	)			(6,953	)			(381,312	)
Comprehensive Income (Loss)		$	29,723			$	27,928			$	(26,445	)		$	133,853			$	(216,815	)

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Condition														Table 5
		September 30,				June 30,				December 31,				September 30,
(dollars in thousands)		2023				2023				2022				2022
Assets
Interest-Bearing Deposits in Other Banks		$	4,676			$	2,261			$	3,724			$	5,429
Funds Sold			386,086				1,273,109				81,364				402,714
Investment Securities
Available-for-Sale			2,387,324				2,666,723				2,844,823				2,424,608
Held-to-Maturity (Fair Value of $4,104,469; $4,411,003; $4,615,393; and $4,668,074)			5,088,013				5,202,698				5,414,139				5,461,160
Loans Held for Sale			1,450				3,359				1,035				418
Loans and Leases			13,919,491				13,914,889				13,646,420				13,321,606
Allowance for Credit Losses			(145,263	)			(145,367	)			(144,439	)			(146,436	)
Net Loans and Leases			13,774,228				13,769,522				13,501,981				13,175,170
Total Earning Assets			21,641,777				22,917,672				21,847,066				21,469,499
Cash and Due from Banks			261,464				398,072				316,679				247,506
Premises and Equipment, Net			196,094				200,297				206,777				208,251
Operating Lease Right-of-Use Assets			86,896				89,286				92,307				94,613
Accrued Interest Receivable			65,541				64,720				61,002				50,143
Foreclosed Real Estate			1,040				1,040				1,040				1,040
Mortgage Servicing Rights			21,273				21,626				22,619				23,104
Goodwill			31,517				31,517				31,517				31,517
Bank-Owned Life Insurance			458,260				456,889				453,882				451,407
Other Assets			785,923				766,817				573,988				556,960
Total Assets		$	23,549,785			$	24,947,936			$	23,606,877			$	23,134,040
Liabilities
Deposits
Noninterest-Bearing Demand		$	5,687,442			$	5,968,344			$	6,714,982			$	7,300,157
Interest-Bearing Demand			3,925,469				4,119,166				4,232,567				4,399,625
Savings			8,530,384				7,756,426				7,962,410				7,954,006
Time			2,659,014				2,664,679				1,705,737				1,234,985
Total Deposits			20,802,309				20,508,615				20,615,696				20,888,773
Securities Sold Under Agreements to Repurchase			150,490				725,490				725,490				425,490
Other Debt			560,217				1,760,243				410,294				10,319
Operating Lease Liabilities			95,453				97,768				100,526				102,705
Retirement Benefits Payable			26,074				26,434				26,991				37,053
Accrued Interest Payable			33,434				26,737				9,698				3,405
Taxes Payable			6,965				132				7,104				13,527
Other Liabilities			511,003				444,238				394,083				370,384
Total Liabilities			22,185,945				23,589,657				22,289,882				21,851,656
Shareholders' Equity
Preferred Stock ($.01 par value; authorized 180,000 shares;
issued / outstanding: September 30, 2023; June 30, 2023; December 31, 2022;
and September 30, 2022 - 180,000)			180,000				180,000				180,000				180,000
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: September 30, 2023 - 58,767,820 / 39,748,700;
June 30, 2023 - 58,771,036 / 39,725,348; December 31, 2022 - 58,733,625 / 39,835,750;
and September 30, 2022 - 58,728,796 / 40,011,473)			583				583				582				582
Capital Surplus			632,425				628,202				620,578				615,985
Accumulated Other Comprehensive Loss			(441,611	)			(423,431	)			(434,658	)			(447,694	)
Retained Earnings			2,108,702				2,091,289				2,055,912				2,024,641
Treasury Stock, at Cost (Shares: September 30, 2023 - 19,019,120; June 30, 2023 - 19,045,688;
December 31, 2022 - 18,897,875; and September 30, 2022 - 18,717,323)			(1,116,259	)			(1,118,364	)			(1,105,419	)			(1,091,130	)
Total Shareholders' Equity			1,363,840				1,358,279				1,316,995				1,282,384
Total Liabilities and Shareholders' Equity		$	23,549,785			$	24,947,936			$	23,606,877			$	23,134,040

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																														Table 6
																		Accumulated
		Preferred					Common											Other
		Shares		Preferred			Shares				Common			Capital				Comprehensive				Retained				Treasury
(dollars in thousands)		Outstanding		Stock			Outstanding				Stock			Surplus				Loss				Earnings				Stock				Total
Balance as of December 31, 2022		180,000		$	180,000			39,835,750			$	582		$	620,578			$	(434,658	)		$	2,055,912			$	(1,105,419	)		$	1,316,995
Net Income		-			-			-				-			-				-				140,806				-				140,806
Other Comprehensive Loss		-			-			-				-			-				(6,953	)			-				-				(6,953	)
Share-Based Compensation		-			-			-				-			11,979				-				-				-				11,979
Common Stock Issued under Purchase and
Equity Compensation Plans		-			-			121,040				1			(132	)			-				1,716				3,216				4,801
Common Stock Repurchased		-			-			(208,090	)			-			-				-				-				(14,056	)			(14,056	)
Cash Dividends Declared Common Stock ($2.10 per share)		-			-			-				-			-				-				(83,824	)			-				(83,824	)
Cash Dividends Declared Preferred Stock		-			-			-				-			-				-				(5,908	)			-				(5,908	)
Balance as of September 30, 2023		180,000		$	180,000			39,748,700			$	583		$	632,425			$	(441,611	)		$	2,108,702			$	(1,116,259	)		$	1,363,840
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		-			-			-				-			-				-				164,497				-				164,497
Other Comprehensive Loss		-			-			-				-			-				(381,312	)			-				-				(381,312	)
Share-Based Compensation		-			-			-				-			11,947				-				-				-				11,947
Common Stock Issued under Purchase and
Equity Compensation Plans		-			-			247,966				1			1,530				-				256				3,889				5,676
Common Stock Repurchased		-			-			(489,686	)			-			-				-				-				(39,548	)			(39,548	)
Cash Dividends Declared Common Stock ($2.10 per share)		-			-			-				-			-				-				(84,579	)			-				(84,579	)
Cash Dividends Declared Preferred Stock		-			-			-				-			-				-				(5,908	)			-				(5,908	)
Balance as of September 30, 2022		180,000		$	180,000			40,011,473			$	582		$	615,985			$	(447,694	)		$	2,024,641			$	(1,091,130	)		$	1,282,384

Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1																							Table 7a
		Three Months Ended									Three Months Ended									Three Months Ended
		September 30, 2023									June 30, 2023									September 30, 2022
		Average			Income /			Yield /			Average			Income /			Yield /			Average			Income /			Yield /
(dollars in millions)		Balance			Expense 2			Rate			Balance			Expense 2			Rate			Balance			Expense 2			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	2.9		$	-		2.40	%		$	5.1		$	-		1.48	%		$	2.9		$	-		1.32	%
Funds Sold			944.8			12.8		5.31				500.1			6.4		5.06				411.8			2.3		2.22
Investment Securities
Available-for-Sale
Taxable			2,605.4			23.5		3.60				2,741.1			23.2		3.39				3,481.9			17.0		1.95
Non-Taxable			3.5			-		3.21				9.6			0.1		4.40				2.5			-		1.56
Held-to-Maturity
Taxable			5,118.6			22.7		1.77				5,231.3			23.2		1.78				4,645.7			20.1		1.73
Non-Taxable			35.0			0.2		2.10				35.2			0.2		2.10				35.6			0.2		2.10
Total Investment Securities			7,762.5			46.4		2.39				8,017.2			46.7		2.33				8,165.7			37.3		1.82
Loans Held for Sale			3.8			0.1		6.28				2.7			-		5.50				4.3			0.1		4.46
Loans and Leases 3
Commercial and Industrial			1,515.0			18.9		4.96				1,456.1			17.5		4.82				1,353.8			12.5		3.66
Paycheck Protection Program			13.1			-		1.32				14.5			-		1.30				28.0			0.2		3.02
Commercial Mortgage			3,792.6			51.1		5.35				3,814.9			49.3		5.19				3,530.9			33.3		3.74
Construction			241.9			3.7		6.09				246.8			3.5		5.70				233.0			2.8		4.81
Commercial Lease Financing			62.6			0.3		1.84				65.4			0.3		1.67				89.1			0.4		1.58
Residential Mortgage			4,715.3			42.8		3.62				4,704.0			41.2		3.50				4,526.6			37.4		3.30
Home Equity			2,283.5			20.1		3.49				2,272.3			19.0		3.35				2,144.8			16.4		3.04
Automobile			868.0			8.2		3.75				879.3			7.7		3.53				795.5			6.4		3.19
Other 4			411.2			6.5		6.24				423.5			6.4		6.04				425.0			5.9		5.48
Total Loans and Leases			13,903.2			151.6		4.34				13,876.8			144.9		4.19				13,126.7			115.3		3.49
Other			91.6			1.5		6.40				94.8			2.2		8.94				36.9			0.3		3.49
Total Earning Assets			22,708.8			212.4		3.72				22,496.7			200.2		3.56				21,748.3			155.3		2.84
Cash and Due from Banks			289.8									316.6									233.5
Other Assets			1,388.8									1,301.1									1,154.0
Total Assets		$	24,387.4								$	24,114.4								$	23,135.8
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand		$	3,929.7			6.6		0.67			$	4,037.4			7.5		0.75			$	4,286.0			1.4		0.13
Savings			7,952.6			39.1		1.95				7,667.6			26.6		1.39				7,962.0			6.6		0.33
Time			2,767.8			26.5		3.79				2,296.1			19.7		3.44				1,146.9			2.3		0.79
Total Interest-Bearing Deposits			14,650.1			72.2		1.95				14,001.1			53.8		1.54				13,394.9			10.3		0.30
Funds Purchased			-			-		-				14.6			0.2		5.00				4.9			0.1		3.17
Short-Term Borrowings			-			-		-				195.2			2.5		5.09				-			-		-
Securities Sold Under Agreements to Repurchase			528.5			4.0		2.99				725.5			5.4		2.96				425.5			2.7		2.52
Other Debt			1,365.7			14.8		4.31				1,255.8			13.5		4.31				10.3			0.2		7.05
Total Interest-Bearing Liabilities			16,544.3			91.0		2.18				16,192.2			75.4		1.87				13,835.6			13.3		0.38
Net Interest Income					$	121.4								$	124.8								$	142.0
Interest Rate Spread								1.54	%								1.69	%								2.46	%
Net Interest Margin								2.13	%								2.22	%								2.60	%
Noninterest-Bearing Demand Deposits			5,842.0									6,017.5									7,468.8
Other Liabilities			636.0									541.6									463.5
Shareholders' Equity			1,365.1									1,363.1									1,367.9
Total Liabilities and Shareholders' Equity		$	24,387.4								$	24,114.4								$	23,135.8

1		Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2		Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $437,000, $471,000, and $343,000 for the three months ended September 30, 2023, June 30, 2023, and September 30, 2022, respectively.
3		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.
4		Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1														Table 7b
		Nine Months Ended									Nine Months Ended
		September 30, 2023									September 30, 2022
		Average			Income /			Yield /			Average			Income /			Yield /
(dollars in millions)		Balance			Expense 2			Rate			Balance			Expense 2			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	3.2		$	0.1		2.60	%		$	3.3		$	-		0.76	%
Funds Sold			582.7			22.6		5.11				308.6			3.2		1.36
Investment Securities
Available-for-Sale
Taxable			2,721.5			70.6		3.46				3,998.2			52.0		1.74
Non-Taxable			7.6			0.2		4.22				2.8			-		1.84
Held-to-Maturity
Taxable			5,227.8			69.7		1.78				4,530.4			57.4		1.69
Non-Taxable			35.2			0.6		2.10				35.7			0.6		2.10
Total Investment Securities			7,992.1			141.1		2.36				8,567.1			110.0		1.71
Loans Held for Sale			2.7			0.1		5.82				8.1			0.2		3.43
Loans and Leases 3
Commercial and Industrial			1,461.2			52.7		4.82				1,339.0			31.4		3.13
Paycheck Protection Program			14.8			0.2		1.70				51.7			2.5		6.59
Commercial Mortgage			3,781.7			145.6		5.15				3,350.3			81.3		3.25
Construction			256.2			11.1		5.81				227.7			7.3		4.30
Commercial Lease Financing			64.9			0.5		1.11				94.0			1.0		1.49
Residential Mortgage			4,695.4			123.8		3.51				4,439.1			108.6		3.26
Home Equity			2,265.2			57.3		3.38				2,026.5			44.1		2.91
Automobile			873.0			23.2		3.55				764.2			18.4		3.21
Other 4			420.8			19.0		6.04				416.5			17.0		5.44
Total Loans and Leases			13,833.2			433.4		4.19				12,709.0			311.6		3.27
Other			84.6			4.1		6.59				37.2			0.9		3.14
Total Earning Assets			22,498.5			601.4		3.57				21,633.3			425.9		2.63
Cash and Due from Banks			308.4									235.0
Other Assets			1,317.5									1,090.9
Total Assets		$	24,124.4								$	22,959.2
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand		$	4,060.0			19.3		0.64			$	4,459.9			2.6		0.08
Savings			7,876.1			86.3		1.46				7,733.3			9.5		0.16
Time			2,288.2			58.1		3.40				1,023.6			4.1		0.53
Total Interest-Bearing Deposits			14,224.3			163.7		1.54				13,216.8			16.2		0.16
Funds Purchased			24.8			0.9		4.72				12.4			0.1		1.05
Short-Term Borrowings			152.4			5.7		4.94				11.5			0.1		1.06
Securities Sold Under Agreements to Repurchase			659.1			14.8		2.97				441.1			8.3		2.48
Other Debt			1,043.6			33.7		4.31				10.3			0.6		7.05
Total Interest-Bearing Liabilities			16,104.2			218.8		1.81				13,692.1			25.3		0.25
Net Interest Income					$	382.6								$	400.6
Interest Rate Spread								1.76	%								2.38	%
Net Interest Margin								2.27	%								2.47	%
Noninterest-Bearing Demand Deposits			6,089.8									7,404.5
Other Liabilities			576.6									420.9
Shareholders' Equity			1,353.8									1,441.7
Total Liabilities and Shareholders' Equity		$	24,124.4								$	22,959.2

1		Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2		Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1,403,000 and $818,000 for the nine months ended September 30, 2023 and September 30, 2022, respectively.
3		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.
4		Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8a
		Three Months Ended September 30, 2023
		Compared to June 30, 2023
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	6.1			$	0.3			$	6.4
Investment Securities
Available-for-Sale
Taxable			(1.1	)			1.4				0.3
Non-Taxable			(0.1	)			-				(0.1	)
Held-to-Maturity
Taxable			(0.5	)			-				(0.5	)
Total Investment Securities			(1.7	)			1.4				(0.3	)
Loans Held for Sale			0.1				-				0.1
Loans and Leases
Commercial and Industrial			0.8				0.6				1.4
Commercial Mortgage			(0.2	)			2.0				1.8
Construction			(0.1	)			0.3				0.2
Residential Mortgage			0.2				1.4				1.6
Home Equity			0.1				1.0				1.1
Automobile			(0.1	)			0.6				0.5
Other 2			(0.2	)			0.3				0.1
Total Loans and Leases			0.5				6.2				6.7
Other			(0.1	)			(0.6	)			(0.7	)
Total Change in Interest Income			4.9				7.3				12.2
Change in Interest Expense:
Interest-Bearing Deposits
Demand			(0.2	)			(0.7	)			(0.9	)
Savings			1.1				11.4				12.5
Time			4.5				2.3				6.8
Total Interest-Bearing Deposits			5.4				13.0				18.4
Funds Purchased			(0.2	)			-				(0.2	)
Short-Term Borrowings			(2.5	)			-				(2.5	)
Securities Sold Under Agreements to Repurchase			(1.4	)			-				(1.4	)
Other Debt			1.3				-				1.3
Total Change in Interest Expense			2.6				13.0				15.6
Change in Net Interest Income		$	2.3			$	(5.7	)		$	(3.4	)

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 Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8b
		Three Months Ended September 30, 2023
		Compared to September 30, 2022
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	5.1			$	5.4			$	10.5
Investment Securities
Available-for-Sale
Taxable			(5.1	)			11.6				6.5
Held-to-Maturity
Taxable			2.1				0.5				2.6
Total Investment Securities			(3.0	)			12.1				9.1
Loans and Leases
Commercial and Industrial			1.6				4.8				6.4
Paycheck Protection Program			(0.1	)			(0.1	)			(0.2	)
Commercial Mortgage			2.6				15.2				17.8
Construction			0.1				0.8				0.9
Commercial Lease Financing			(0.2	)			0.1				(0.1	)
Residential Mortgage			1.7				3.7				5.4
Home Equity			1.2				2.5				3.7
Automobile			0.6				1.2				1.8
Other 2			(0.2	)			0.8				0.6
Total Loans and Leases			7.3				29.0				36.3
Other			0.7				0.5				1.2
Total Change in Interest Income			10.1				47.0				57.1
Change in Interest Expense:
Interest-Bearing Deposits
Demand			(0.1	)			5.3				5.2
Savings			-				32.5				32.5
Time			6.6				17.6				24.2
Total Interest-Bearing Deposits			6.5				55.4				61.9
Funds Purchased			(0.1	)			-				(0.1	)
Securities Sold Under Agreements to Repurchase			0.7				0.6				1.3
Other Debt			14.7				(0.1	)			14.6
Total Change in Interest Expense			21.8				55.9				77.7
Change in Net Interest Income		$	(11.7	)		$	(8.9	)		$	(20.6	)

1		The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2		Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8c
		Nine Months Ended September 30, 2023
		Compared to September 30, 2022
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	0.1			$	-			$	0.1
Funds Sold			4.7				14.7				19.4
Investment Securities
Available-for-Sale
Taxable			(20.6	)			39.2				18.6
Non-Taxable			0.1				0.1				0.2
Held-to-Maturity
Taxable			9.2				3.1				12.3
Total Investment Securities			(11.3	)			42.4				31.1
Loans Held for Sale			(0.2	)			0.1				(0.1	)
Loans and Leases
Commercial and Industrial			3.1				18.2				21.3
Paycheck Protection Program			(1.2	)			(1.1	)			(2.3	)
Commercial Mortgage			11.6				52.7				64.3
Construction			1.0				2.8				3.8
Commercial Lease Financing			(0.4	)			(0.1	)			(0.5	)
Residential Mortgage			6.5				8.7				15.2
Home Equity			5.6				7.6				13.2
Automobile			2.7				2.1				4.8
Other 2			0.1				1.9				2.0
Total Loans and Leases			29.0				92.8				121.8
Other			1.7				1.5				3.2
Total Change in Interest Income			24.0				151.5				175.5
Change in Interest Expense:
Interest-Bearing Deposits
Demand			(0.3	)			17.0				16.7
Savings			0.2				76.6				76.8
Time			10.0				44.0				54.0
Total Interest-Bearing Deposits			9.9				137.6				147.5
Funds Purchased			0.2				0.6				0.8
Short-Term Borrowings			4.3				1.3				5.6
Securities Sold Under Agreements to Repurchase			4.7				1.8				6.5
Other Debt			33.4				(0.3	)			33.1
Total Change in Interest Expense			52.5				141.0				193.5
Change in Net Interest Income		$	(28.5	)		$	10.5			$	(18.0	)

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 Hawai‘i Corporation and Subsidiaries
Salaries and Benefits															Table 9
		Three Months Ended										Nine Months Ended
		September 30,			June 30,				September 30,			September 30,
(dollars in thousands)		2023			2023				2022			2023			2022
Salaries		$	39,426		$	37,962			$	37,792		$	116,005		$	109,445
Incentive Compensation			2,956			2,984				5,885			9,937			18,069
Share-Based Compensation			4,072			4,096				3,558			11,327			11,319
Commission Expense			676			775				1,005			2,098			3,878
Retirement and Other Benefits			3,809			3,489				4,448			13,186			13,177
Payroll Taxes			2,921			3,310				2,826			12,079			10,804
Medical, Dental, and Life Insurance			2,835			3,568				2,605			10,267			8,430
Separation Expense			2,130			(9	)			1,819			5,189			2,509
Total Salaries and Benefits		$	58,825		$	56,175			$	59,938		$	180,088		$	177,631

Bank of Hawai‘i Corporation and Subsidiaries
Loan and Lease Portfolio Balances														Table 10
		September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)		2023			2023			2023			2022			2022
Commercial
Commercial and Industrial		$	1,569,572		$	1,502,676		$	1,425,916		$	1,389,066		$	1,368,966
Paycheck Protection Program			12,529			13,789			15,175			19,579			22,955
Commercial Mortgage			3,784,339			3,796,769			3,826,283			3,725,542			3,591,943
Construction			251,507			236,428			232,903			260,825			236,498
Lease Financing			61,522			62,779			65,611			69,491			73,989
Total Commercial			5,679,469			5,612,441			5,565,888			5,464,503			5,294,351
Consumer
Residential Mortgage			4,699,140			4,721,976			4,691,298			4,653,072			4,585,723
Home Equity			2,285,974			2,278,105			2,260,001			2,225,950			2,185,484
Automobile			856,113			878,767			877,979			870,396			820,640
Other 1			398,795			423,600			429,356			432,499			435,408
Total Consumer			8,240,022			8,302,448			8,258,634			8,181,917			8,027,255
Total Loans and Leases		$	13,919,491		$	13,914,889		$	13,824,522		$	13,646,420		$	13,321,606
1 Comprised of other revolving credit, installment, and lease financing.
Deposits
		September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)		2023			2023			2023			2022			2022
Consumer		$	10,036,261		$	10,018,931		$	10,158,833		$	10,304,335		$	10,507,946
Commercial			8,564,536			8,019,971			8,594,441			8,569,670			8,841,781
Public and Other			2,201,512			2,469,713			1,738,026			1,741,691			1,539,046
Total Deposits		$	20,802,309		$	20,508,615		$	20,491,300		$	20,615,696		$	20,888,773
Average Deposits
		Three Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)		2023			2023			2023			2022			2022
Consumer		$	9,963,690		$	9,977,239		$	10,178,988		$	10,295,563		$	10,485,895
Commercial			8,288,891			8,138,358			8,611,960			8,588,198			9,002,432
Public and Other			2,239,501			1,903,004			1,639,934			1,457,566			1,375,354
Total Deposits		$	20,492,082		$	20,018,601		$	20,430,882		$	20,341,327		$	20,863,681

Bank of Hawai‘i Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More																		Table 11
		September 30,				June 30,				March 31,				December 31,				September 30,
(dollars in thousands)		2023				2023				2023				2022				2022
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial		$	43			$	17			$	31			$	37			$	49
Commercial Mortgage			2,996				3,107				3,216				3,309				3,396
Total Commercial			3,039				3,124				3,247				3,346				3,445
Consumer
Residential Mortgage			3,706				3,504				4,199				4,239				4,945
Home Equity			3,734				3,809				3,638				4,022				4,438
Total Consumer			7,440				7,313				7,837				8,261				9,383
Total Non-Accrual Loans and Leases			10,479				10,437				11,084				11,607				12,828
Foreclosed Real Estate			1,040				1,040				1,040				1,040				1,040
Total Non-Performing Assets		$	11,519			$	11,477			$	12,124			$	12,647			$	13,868
Accruing Loans and Leases Past Due 90 Days or More
Consumer
Residential Mortgage		$	3,519			$	3,560			$	4,566			$	2,429			$	3,279
Home Equity			2,172				2,022				1,723				1,673				1,061
Automobile			393				577				598				589				467
Other 1			643				633				632				683				513
Total Consumer			6,727				6,792				7,519				5,374				5,320
Total Accruing Loans and Leases Past Due 90 Days or More		$	6,727			$	6,792			$	7,519			$	5,374			$	5,320
Total Loans and Leases		$	13,919,491			$	13,914,889			$	13,824,522			$	13,646,420			$	13,321,606
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.08	%			0.08	%			0.08	%			0.09	%			0.10	%
Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate			0.08	%			0.08	%			0.09	%			0.09	%			0.10	%
Ratio of Non-Performing Assets to Total Assets			0.05	%			0.04	%			0.05	%			0.05	%			0.06	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans
and Leases and Commercial Foreclosed Real Estate			0.05	%			0.06	%			0.06	%			0.06	%			0.07	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate			0.10	%			0.10	%			0.11	%			0.11	%			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			0.13	%			0.13	%			0.14	%			0.13	%			0.14	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter		$	11,477			$	12,124			$	12,647			$	13,868			$	15,493
Additions			1,318				1,116				552				704				489
Reductions
Payments			(1,017	)			(226	)			(778	)			(1,605	)			(706	)
Return to Accrual Status			(259	)			(1,527	)			(297	)			(301	)			(116	)
Sales of Foreclosed Real Estate			-				-				-				-				(1,292	)
Charge-offs / Write-downs			-				(10	)			-				(19	)			-
Total Reductions			(1,276	)			(1,763	)			(1,075	)			(1,925	)			(2,114	)
Balance at End of Quarter		$	11,519			$	11,477			$	12,124			$	12,647			$	13,868

1

Comprised of other revolving credit, installment, and lease financing.

Bank of Hawai‘i Corporation and Subsidiaries
Reserve for Credit Losses																		Table 12
		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,
(dollars in thousands)		2023				2023				2022				2023				2022
Balance at Beginning of Period		$	151,702			$	150,579			$	154,098			$	151,247			$	164,297
Loans and Leases Charged-Off
Commercial
Commercial and Industrial			(294	)			(203	)			(147	)			(758	)			(729	)
Consumer
Residential Mortgage			-				(6	)			-				(6	)			(80	)
Home Equity			(13	)			(5	)			-				(68	)			(90	)
Automobile			(1,353	)			(1,293	)			(794	)			(4,309	)			(3,481	)
Other 1			(1,957	)			(2,004	)			(1,924	)			(6,296	)			(5,739	)
Total Loans and Leases Charged-Off			(3,617	)			(3,511	)			(2,865	)			(11,437	)			(10,119	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial			72				103				45				225				465
Consumer
Residential Mortgage			69				58				156				188				1,130
Home Equity			131				578				367				893				1,298
Automobile			721				777				441				2,170				1,864
Other 1			575				618				709				1,867				2,098
Total Recoveries on Loans and Leases Previously Charged-Off			1,568				2,134				1,718				5,343				6,855
Net Charged-Off - Loans and Leases			(2,049	)			(1,377	)			(1,147	)			(6,094	)			(3,264	)
Net Charged-Off - Accrued Interest Receivable
Provision for Credit Losses:
Loans and Leases			1,945				3,167				(929	)			6,918				(8,121	)
Accrued Interest Receivable			-				-				-				-				(367	)
Unfunded Commitments			55				(667	)			905				(418	)			429
Total Provision for Credit Losses			2,000				2,500				(24	)			6,500				(8,059	)
Balance at End of Period		$	151,653			$	151,702			$	152,927			$	151,653			$	152,927
Components
Allowance for Credit Losses - Loans and Leases		$	145,263			$	145,367			$	146,436			$	145,263			$	146,436
Reserve for Unfunded Commitments			6,390				6,335				6,491				6,390				6,491
Total Reserve for Credit Losses		$	151,653			$	151,702			$	152,927			$	151,653			$	152,927
Average Loans and Leases Outstanding		$	13,903,214			$	13,876,754			$	13,126,717			$	13,833,164			$	12,709,045
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)			0.06	%			0.04	%			0.03	%			0.06	%			0.03	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 2			1.04	%			1.04	%			1.10	%			1.04	%			1.10	%

1		Comprised of other revolving credit, installment, and lease financing.
2		The numerator comprises the Allowance for Credit Losses - Loans and Leases.

Bank of Hawai‘i Corporation and Subsidiaries
Business Segments Selected Financial Information														Table 13a
		Consumer				Commercial				Treasury				Consolidated
(dollars in thousands)		Banking				Banking				and Other				Total
Three Months Ended September 30, 2023
Net Interest Income (Loss)		$	100,913			$	53,823			$	(33,799	)		$	120,937
Provision for Credit Losses			1,974				74				(48	)			2,000
Net Interest Income (Loss) After Provision for Credit Losses			98,939				53,749				(33,751	)			118,937
Noninterest Income			31,027				8,483				10,824				50,334
Noninterest Expense			(81,377	)			(18,937	)			(5,287	)			(105,601	)
Income (Loss) Before Income Taxes			48,589				43,295				(28,214	)			63,670
Provision for Income Taxes			(12,582	)			(10,987	)			7,802				(15,767	)
Net Income (Loss)		$	36,007			$	32,308			$	(20,412	)		$	47,903
Total Assets as of September 30, 2023		$	8,584,221			$	5,719,577			$	9,245,987			$	23,549,785
Three Months Ended September 30, 2022 1
Net Interest Income (Loss)		$	85,658			$	56,251			$	(254	)		$	141,655
Provision for Credit Losses			1,148				(1	)			(1,147	)			-
Net Interest Income After Provision for Credit Losses			84,510				56,252				893				141,655
Noninterest Income (Loss)			30,974				(911	)			597				30,660
Noninterest Expense			(83,408	)			(17,330	)			(5,011	)			(105,749	)
Income (Loss) Before Income Taxes			32,076				38,011				(3,521	)			66,566
Provision for Income Taxes			(8,067	)			(9,206	)			3,508				(13,765	)
Net Income (Loss)		$	24,009			$	28,805			$	(13	)		$	52,801
Total Assets as of September 30, 2022		$	8,399,068			$	5,486,330			$	9,248,642			$	23,134,040

1

Certain prior period information has been reclassified to conform to current presentation.

Bank of Hawai‘i Corporation and Subsidiaries
Business Segments Selected Financial Information														Table 13b
		Consumer				Commercial				Treasury				Consolidated
(dollars in thousands)		Banking				Banking				and Other				Total
Nine Months Ended September 30, 2023
Net Interest Income (Loss)		$	298,512			$	164,202			$	(81,474	)		$	381,240
Provision for Credit Losses			6,035				59				406				6,500
Net Interest Income (Loss) After Provision for Credit Losses			292,477				164,143				(81,880	)			374,740
Noninterest Income			94,126				25,072				15,128				134,326
Noninterest Expense			(247,543	)			(58,528	)			(15,485	)			(321,556	)
Income (Loss) Before Income Taxes			139,060				130,687				(82,237	)			187,510
Provision for Income Taxes			(35,838	)			(32,490	)			21,624				(46,704	)
Net Income (Loss)		$	103,222			$	98,197			$	(60,613	)		$	140,806
Total Assets as of September 30, 2023		$	8,584,221			$	5,719,577			$	9,245,987			$	23,549,785
Nine Months Ended September 30, 2022 1
Net Interest Income		$	232,646			$	152,394			$	14,780			$	399,820
Provision for Credit Losses			3,463				(200	)			(11,263	)			(8,000	)
Net Interest Income After Provision for Credit Losses			229,183				152,594				26,043				407,820
Noninterest Income			94,811				17,650				3,908				116,369
Noninterest Expense			(247,854	)			(53,014	)			(11,694	)			(312,562	)
Income Before Income Taxes			76,140				117,230				18,257				211,627
Provision for Income Taxes			(19,114	)			(28,654	)			638				(47,130	)
Net Income		$	57,026			$	88,576			$	18,895			$	164,497
Total Assets as of September 30, 2022		$	8,399,068			$	5,486,330			$	9,248,642			$	23,134,040

1

Certain prior period information has been reclassified to conform to current presentation.

Bank of Hawai‘i Corporation and Subsidiaries
Selected Quarterly Financial Data																		Table 14
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
(dollars in thousands, except per share amounts)		2023				2023				2023				2022				2022
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases		$	151,245			$	144,541			$	136,501			$	128,683			$	115,013
Income on Investment Securities
Available-for-Sale			23,552				23,301				23,893				18,476				16,995
Held-to-Maturity			22,838				23,375				23,948				23,708				20,243
Deposits			18				18				27				13				10
Funds Sold			12,828				6,395				3,366				1,093				2,335
Other			1,464				2,121				597				340				322
Total Interest Income			211,945				199,751				188,332				172,313				154,918
Interest Expense
Deposits			72,153				53,779				37,794				23,494				10,296
Securities Sold Under Agreements to Repurchase			4,034				5,436				5,377				4,289				2,745
Funds Purchased			-				184				704				318				40
Short-Term Borrowings			-				2,510				3,203				1,978				-
Other Debt			14,821				13,494				5,299				1,496				182
Total Interest Expense			91,008				75,403				52,377				31,575				13,263
Net Interest Income			120,937				124,348				135,955				140,738				141,655
Provision for Credit Losses			2,000				2,500				2,000				200				-
Net Interest Income After Provision for Credit Losses			118,937				121,848				133,955				140,538				141,655
Noninterest Income
Trust and Asset Management			10,548				11,215				10,690				10,652				10,418
Mortgage Banking			1,059				1,176				1,004				991				1,002
Service Charges on Deposit Accounts			7,843				7,587				7,737				7,513				7,526
Fees, Exchange, and Other Service Charges			13,824				14,150				13,808				13,906				13,863
Investment Securities Losses, Net			(6,734	)			(1,310	)			(1,792	)			(1,124	)			(2,147	)
Annuity and Insurance			1,156				1,038				1,271				1,087				1,034
Bank-Owned Life Insurance			2,749				2,876				2,842				2,475				2,486
Other			19,889				6,523				5,177				5,672				(3,522	)
Total Noninterest Income			50,334				43,255				40,737				41,172				30,660
Noninterest Expense
Salaries and Benefits			58,825				56,175				65,088				57,639				59,938
Net Occupancy			10,327				9,991				9,872				9,499				10,186
Net Equipment			9,477				10,573				10,375				9,942				9,736
Data Processing			4,706				4,599				4,583				4,579				4,616
Professional Fees			3,846				4,651				3,883				3,958				3,799
FDIC Insurance			3,361				3,173				3,234				1,774				1,680
Other			15,059				14,874				14,884				15,312				15,794
Total Noninterest Expense			105,601				104,036				111,919				102,703				105,749
Income Before Provision for Income Taxes			63,670				61,067				62,773				79,007				66,566
Provision for Income Taxes			15,767				15,006				15,931				17,700				13,765
Net Income		$	47,903			$	46,061			$	46,842			$	61,307			$	52,801
Preferred Stock Dividends			1,969				1,969				1,969				1,969				1,969
Net Income Available to Common Shareholders		$	45,934			$	44,092			$	44,873			$	59,338			$	50,832
Basic Earnings Per Common Share		$	1.17			$	1.12			$	1.14			$	1.51			$	1.28
Diluted Earnings Per Common Share		$	1.17			$	1.12			$	1.14			$	1.50			$	1.28
Balance Sheet Totals
Loans and Leases		$	13,919,491			$	13,914,889			$	13,824,522			$	13,646,420			$	13,321,606
Total Assets			23,549,785				24,947,936				23,931,977				23,606,877				23,134,040
Total Deposits			20,802,309				20,508,615				20,491,300				20,615,696				20,888,773
Total Shareholders' Equity			1,363,840				1,358,279				1,354,430				1,316,995				1,282,384
Performance Ratios
Return on Average Assets			0.78	%			0.77	%			0.80	%			1.05	%			0.91	%
Return on Average Shareholders' Equity			13.92				13.55				14.25				18.91				15.31
Return on Average Common Equity			15.38				14.95				15.79				21.28				16.98
Efficiency Ratio 1			61.66				62.07				63.34				56.46				61.37
Net Interest Margin 2			2.13				2.22				2.47				2.60				2.60

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 Hawai‘i Corporation and Subsidiaries
Hawaii Economic Trends																			Table 15
		Eight Months Ended						Year Ended
(dollars in millions; jobs in thousands)		August 31, 2023						December 31, 2022							December 31, 2021
Hawaii Economic Trends
State General Fund Revenues 1		$	6,461.9		(3.5	)%		$	9,441.3			16.0	%		$	8,137.9			26.9	%
General Excise and Use Tax Revenue 1			3,027.8		5.9				4,263.4			18.3				3,604.3			18.6
Jobs 2			657.3						654.5							642.6
												September 30,			December 31,
												2023			2022				2021
Unemployment, seasonally adjusted 3
Statewide												2.8	%			3.7	%		3.2	%
Honolulu County												2.2				3.3			3.7
Hawaii County												2.2				4.7			1.8
Maui County												6.4				4.5			2.4
Kauai County												2.0				4.7			2.7
								September 30,				December 31,
(1-year percentage change, except months of inventory)								2023				2022			2022				2022
Housing Trends (Single Family Oahu) 4
Median Home Price									(5.4	)%		11.6	%			19.3	%		5.2	%
Home Sales Volume (units)									(30.5	)%		(23.2	)%			17.9	%		2.3	%
Months of Inventory									2.7			2.1				0.8			1.4
								Monthly Visitor Arrivals,							Percentage Change
(in thousands, except percent change)								Not Seasonally Adjusted							from Previous Year
Tourism 5
August 31, 2023												766.0							(7.7	)%
July 31, 2023												929.4							1.2
June 30, 2023												886.0							5.3
May 31, 2023												790.5							2.1
April 30, 2023												806.2							(0.4	)
March 31, 2023												892.2							13.6
February 28, 2023												733.6							17.6
January 31, 2023												775.1							36.7
December 31, 2022												858.1							14.0
November 30, 2022												725.5							18.2
October 31, 2022												726.1							31.8
September 30, 2022												691.8							37.1
August 31, 2022												829.8							14.8
July 31, 2022												918.6							4.4
June 30, 2022												841.8							6.4
May 31, 2022												774.1							22.9
April 30, 2022												809.6							67.3
March 31, 2022												785.7							78.7
February 28, 2022												623.7							165.1
January 31, 2022												567.2							229.8
December 31,2021												752.8							219.3
November 30, 2021												614.0							234.1
October 31, 2021												550.8							618.2
September 30, 2021												504.6							2,641.0
August 31, 2021												723.0							2,995.6

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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231023382031/en/

The Bank of Hawaii Stock at the time of publication of the news with a raise of 0,00 % to 43,10EUR on Lang & Schwarz stock exchange (23. Oktober 2023, 12:49 Uhr).