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8-K

BANK OF HAWAII CORP (BOH)

8-K 2020-10-26 For: 2020-10-26
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Added on April 04, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report October 26, 2020
(Date of earliest event reported)

BANK OF HAWAII CORP

(Exact name of registrant as specified in its charter)

Delaware 1-6887 99-0148992
(State of Incorporation) (Commission File Number) (IRS Employer Identification No.)
130 Merchant Street Honolulu Hawaii 96813
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(Address of principal executive offices) (City) (State) (Zip Code)

(888) 643-3888

(Registrant's telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol Name of each exchange on which registered
Common Stock $.01 Par Value BOH New York Stock Exchange

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On October 26, 2020, Bank of Hawaii Corporation announced its results of operations for the quarter ended September 30, 2020.  The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
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Exhibit No.
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99.1 October 26, 2020 Press Release: Bank of Hawaii Corporation Third Quarter 2020 Financial Results.  Any internet addresses provided in this release are for informational purposes only and are not intended to be hyperlinks.  Furnished herewith.
99.2 Bank of Hawaii Corporation Third Quarter 2020 Financial Results Supplement
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 26, 2020 Bank of Hawaii Corporation
By: /s/ Mark A. Rossi
Mark A. Rossi
Vice Chairman and Corporate Secretary

boh-ex991_24.htm

Exhibit 99.1

Bank of Hawaii Corporation Third Quarter 2020 Financial Results

• Diluted Earnings Per Share $0.95
• Net Income $37.8 Million
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• Board of Directors Approves Dividend of $0.67 Per Share
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FOR IMMEDIATE RELEASE

HONOLULU, HI (October 26, 2020) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.95 for the third quarter of 2020 compared with diluted earnings per share of $0.98 in the previous quarter and diluted earnings per share of $1.29 in the same quarter last year.  Net income for the third quarter of 2020 was $37.8 million compared with net income of $38.9 million in the second quarter of 2020 and net income of $52.1 million in the third quarter of 2019.

Loan and lease balances were $11.8 billion at September 30, 2020 down slightly from June 30, 2020, up 7.3 percent from December 31, 2019, and up 8.4 percent compared with September 30, 2019.  Total deposits reached another record high of $17.7 billion at the end of the third quarter of 2020, an increase of 1.8 percent from June 30, 2020, up 12.4 percent from December 31, 2019, and up 15.6 percent compared with September 30, 2019.

“Our financial results for the third quarter largely reflect current conditions at the local, national and global level,” said Peter Ho, Chairman, President and CEO.  “Our long-standing commitment to conservatism, liquidity and capital strength positions us relatively well to these extraordinary times.”

The return on average assets for the third quarter of 2020 was 0.76 percent, down from 0.82 percent in the previous quarter and 1.17 percent in the same quarter last year.  The return on average equity for the third quarter of 2020 was 11.01 percent compared with 11.58 percent for the second quarter of 2020 and 16.02 percent for the third quarter of 2019.  The efficiency ratio for the third quarter of 2020 was 54.22 percent compared with 49.95 percent in the previous quarter and 58.55 percent in the same quarter last year.

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Bank of Hawaii Corporation Third Quarter 2020 Financial Results Page 2

For the nine-month period ended September 30, 2020, net income was $111.5 million, down from net income of $167.8 million during the same period last year.  Diluted earnings per share were $2.80 for the nine-month period in 2020 compared with diluted earnings per share of $4.11 for the same period in 2019.  The return on average assets for the nine-month period ended September 30, 2020 was 0.78 percent compared with the return on average assets of 1.29 percent for the same nine months in 2019.  The 2020 year-to-date return on average equity was 11.08 percent compared with 17.58 percent for the nine months ended September 30, 2019.  The efficiency ratio for the nine-month period in 2020 was 53.33 percent compared with 56.16 percent in the same period last year.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the third quarter of 2020 was $124.5 million, a decrease of $2.5 million compared with $127.0 million in the second quarter of 2020 and a decrease of $0.7 million compared with $125.2 million in the third quarter of 2019.  Net interest income in the second quarter of 2020 included an interest recovery of $2.9 million that increased the margin by 7 basis points.  Net interest income, on a taxable equivalent basis, for the nine-month period in 2020 was $377.8 million, an increase of $2.1 million compared with net interest income of $375.7 million for the same period in 2019.  Analyses of the changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin was 2.67 percent for the third quarter of 2020, down 16 basis points from 2.83 percent in the previous quarter and down 34 basis points from the net interest margin of 3.01 percent in the third quarter of 2019.  The decrease is largely due to lower rates and higher levels of liquidity due to the strong deposit growth.  The net interest margin for the nine-month period in 2020 was 2.82 percent compared with the net interest margin of 3.05 percent for the same nine-month period last year.

Results for the third quarter of 2020 included a provision for credit losses of $28.6 million compared with $40.4 million in the previous quarter and $4.3 million in the same quarter last year.  The provision for credit losses for the nine-month period in 2020 was $102.6 million compared with a provision for credit losses of $11.3 million during the same period in 2019.

Noninterest income was $41.7 million in the third quarter of 2020, a decrease of $9.6 million compared with $51.3 million in the second quarter of 2020 and a decrease of $4.8 million compared with $46.5 million in the third quarter of 2019.  There were no significant items in noninterest income during the third quarter of 2020 or the third quarter of 2019.  Noninterest income during the second quarter of 2020 included a gain of $14.2 million related to a sale of Visa Class B shares.  Adjusted for the sale of the Visa shares, the increase in noninterest income compared to the prior quarter was primarily due to higher fee income.   The decline in noninterest revenue compared to the third quarter last year is due to lower fee income resulting from decreased customer and visitor activity related to the COVID-19 pandemic.  Noninterest income for the nine-month period in 2020 was $139.2 million, an increase of $3.6 million compared with noninterest income of $135.6 million for the same period in 2019.

Noninterest expense was $89.9 million in the third quarter of 2020, an increase of $1.0 million compared with $88.9 million in the second quarter of 2020 and a decrease of $10.4 million compared with $100.3 million in the third quarter last year.  Noninterest expense during the third quarter of 2020 included a gain of $1.9 million related to the sale of a branch building partially offset by $1.8 million in severance.  There were no significant items in noninterest expense during the second quarter of 2020.  Noninterest expense in the third quarter of 2019 included a $6.0 million increase in legal reserves.   Noninterest expense for the nine-month period in 2020 was $275.2 million, a decrease of $10.9 million compared with noninterest expense of $286.1 million for the same period in 2019.  An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

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Bank of Hawaii Corporation Third Quarter 2020 Financial Results Page 3

The effective tax rate for the third quarter of 2020 was 20.09 percent compared with 20.05 percent in the previous quarter and 22.08 percent in the same quarter last year.  The effective tax rate for the nine-month period in 2020 was 19.34 percent compared with an effective tax rate of 20.89 percent during the same period last year.

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

Asset Quality

The Company’s asset quality remained relatively stable during the third quarter of 2020.  Total non-performing assets were $18.6 million at September 30, 2020 down from $22.7 million at June 30, 2020 and $21.6 million at September 30, 2019.  As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.16 percent, down from 0.19 percent at the end of the previous quarter and 0.20 percent at the end of the third quarter last year.

Accruing loans and leases past due 90 days or more were $9.6 million at September 30, 2020 compared with $8.9 million at June 30, 2020 and $6.1 million at September 30, 2019.  Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $58.7 million at September 30, 2020, compared with $59.7 million at June 30, 2020 and $46.2 million at September 30, 2019.  More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loan and lease charge-offs during the third quarter of 2020 were a net recovery of $1.5 million.  Loan and lease charge-offs of $2.3 million during the quarter were fully offset by recoveries of $3.8 million.  Net charge-offs during the second quarter of 2020 were $5.1 million or 0.18 percent annualized of total average loans and leases outstanding and comprised of $8.3 million in charge-offs and recoveries of $3.2 million.  Net charge-offs during the third quarter of 2019 were $3.0 million or 0.11 percent annualized of total average loans and leases outstanding and comprised of $5.8 million in charge-offs and recoveries of $2.8 million.  Net charge-offs during the nine-month period in 2020 were $7.4 million or 0.09 percent annualized of total average loans and leases outstanding compared with net charge-offs of $9.0 million or 0.11 percent annualized of total average loans and leases outstanding for the nine-month period in 2019.

The allowance for credit losses was $203.5 million at September 30, 2020 compared with $173.4 million at June 30, 2020 and $108.9 million at September 30, 2019.  The ratio of the allowance for credit losses to total loans and leases was 1.73 percent at September 30, 2020 compared with 1.47 percent at June 30, 2020 and 1.00 percent at September 30, 2019.  The reserve for unfunded commitments was $2.3 million at September 30, 2020 compared with $2.5 million at June 30, 2020 and $6.8 million at September 30, 2019.  Details of loan and lease charge-offs, recoveries and components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets increased to $20.1 billion at September 30, 2020 compared with $19.8 billion at June 30, 2020 and $17.7 billion at September 30, 2019.  Average total assets were $19.7 billion during the third quarter of 2020 compared with $19.2 billion during the previous quarter and $17.6 billion during the third quarter last year.

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Bank of Hawaii Corporation Third Quarter 2020 Financial Results Page 4

The investment securities portfolio was $6.4 billion at September 30, 2020, up from $6.0 billion at June 30, 2020 and $5.5 billion at September 30, 2019 due to strong growth in deposits that outpaced loan growth.  The portfolio remains largely comprised of securities issued by U.S. government agencies and includes $3.2 billion in securities held to maturity and $3.2 billion in securities available for sale.   The securities portfolio at June 30, 2020 included $3.3 billion in securities held to maturity and $2.7 billion in securities available for sale compared with $2.9 billion in securities held to maturity and $2.6 billion in securities available for sale at September 30, 2019.

Total loans and leases were $11.8 billion at September 30, 2020.  Average total loans and leases were $11.7 billion during the third quarter of 2020 up slightly from the previous quarter and up 9.0 percent from $10.8 billion during the same quarter last year.  The commercial loan portfolio was $5.0 billion at September 30, 2020, down $5.9 million or 0.1 percent from June 30, 2020, and up $860.1 million or 20.7 percent from September 30, 2019.  The consumer loan portfolio was $6.8 billion at September 30, 2020, down $5.9 million or 0.1 percent from June 30, 2020, and up $52.2 million or 0.8 percent from September 30, 2019.

Total deposits were $17.7 billion at September 30, 2020.  Average total deposits were $17.3 billion during the third quarter of 2020, up 3.5 percent from $16.7 billion during the previous quarter and up 12.7 percent from $15.3 billion during the same quarter last year.  Consumer deposits increased to $8.9 billion at September 30, 2020, up $136.9 million or 1.6 percent from $8.8 billion at June 30, 2020 and up $1.0 billion or 12.8 percent from $7.9 billion at September 30, 2019.  Commercial deposits were $7.2 billion at September 30, 2020, down $135.5 million or 1.9 percent from $7.3 billion at June 30, 2020 and were up $1.0 billion or 16.3 percent from $6.2 billion at September 30, 2019.  Other deposits, including public funds, were $1.7 billion at September 30, 2020, an increase of $314.3 million or 23.1 percent from June 30, 2020 and up $381.7 million or 29.5 percent from September 30, 2019. Deposit balances are summarized in Tables 7a, 7b, and 10.

Total shareholders’ equity increased to $1.36 billion at September 30, 2020 compared with $1.35 billion at June 30, 2020 and $1.29 billion at September 30, 2019.  There were no shares repurchased during the third quarter of 2020. The Tier 1 Capital Ratio at September 30, 2020 was 12.09 percent compared with 12.04 percent at June 30, 2020 and 12.33 percent at September 30, 2019.  The Tier 1 leverage ratio at September 30, 2020 was 6.81 percent compared with 6.90 percent at June 30, 2020 and 7.32 percent at September 30, 2019.

The Company’s Board of Directors declared a quarterly cash dividend of $0.67 per share on the Company’s outstanding shares.  The dividend will be payable on December 14, 2020 to shareholders of record at the close of business on November 30, 2020.

Conference Call Information

The Company will review its third quarter 2020 financial results today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time).  The live call, including a slide presentation, will be accessible on the investor relations link of Company’s website, www.boh.com. The webcast link is https://edge.media-server.com/mmc/p/xr9ecjhk.  The toll-free number for the teleconference is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers.  Use the pass code “Bank of Hawaii” to access the call.  A replay will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, October 26, 2020.  The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations.  Enter the conference ID 6164797 when prompted.  In addition, the replay will be available on the Company's website, www.boh.com.

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Bank of Hawaii Corporation Third Quarter 2020 Financial Results Page 5

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations.  Do not unduly rely on forward-looking statements.  Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2019, which was filed with the U.S. Securities and Exchange Commission.  We have not committed to update forward-looking statements to reflect later events or circumstances.

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

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Bank of Hawaii 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) 2020 2020 2019 2020 2019
For the Period:
Operating Results
Net Interest Income $ 124,166 $ 126,691 $ 124,896 $ 376,823 $ 373,830
Provision for Credit Losses 28,600 40,400 4,250 102,600 11,250
Total Noninterest Income 41,734 51,268 46,507 139,151 135,636
Total Noninterest Expense 89,949 88,892 100,349 275,153 286,131
Net Income 37,840 38,908 52,052 111,490 167,770
Basic Earnings Per Share 0.95 0.98 1.30 2.81 4.14
Diluted Earnings Per Share 0.95 0.98 1.29 2.80 4.11
Dividends Declared Per Share 0.67 0.67 0.65 2.01 1.92
Performance Ratios
Return on Average Assets 0.76 % 0.82 % 1.17 % 0.78 % 1.29 %
Return on Average Shareholders' Equity 11.01 11.58 16.02 11.08 17.58
Efficiency Ratio ^1^ 54.22 49.95 58.55 53.33 56.16
Net Interest Margin ^2^ 2.67 2.83 3.01 2.82 3.05
Dividend Payout Ratio ^3^ 70.53 68.37 50.00 71.53 46.38
Average Shareholders' Equity to Average Assets 6.93 7.04 7.32 7.06 7.31
Average Balances
Average Loans and Leases $ 11,739,785 $ 11,727,649 $ 10,770,720 $ 11,510,222 $ 10,624,311
Average Assets 19,741,139 19,189,581 17,605,394 19,053,626 17,442,054
Average Deposits 17,270,206 16,679,511 15,330,691 16,591,640 15,156,275
Average Shareholders' Equity 1,367,756 1,351,345 1,289,417 1,344,402 1,275,753
Per Share of Common Stock
Book Value $ 33.99 $ 33.76 $ 32.00 $ 33.99 $ 32.00
Tangible Book Value 33.21 32.97 31.22 33.21 31.22
Market Value
Closing 50.52 61.41 85.93 50.52 85.93
High 61.94 72.74 88.20 95.53 88.20
Low 48.77 51.15 79.13 46.70 66.54
September 30, June 30, December 31, September 30,
2020 2020 2019 2019
As of Period End:
Balance Sheet Totals
Loans and Leases $ 11,793,608 $ 11,805,370 $ 10,990,892 $ 10,881,298
Total Assets 20,109,489 19,769,942 18,095,496 17,672,140
Total Deposits 17,738,883 17,423,155 15,784,482 15,340,752
Other Debt 60,502 60,524 85,565 110,585
Total Shareholders' Equity 1,361,739 1,352,082 1,286,832 1,291,490
Asset Quality
Non-Performing Assets $ 18,626 $ 22,701 $ 20,117 $ 21,645
Allowance for Credit Losses 203,496 173,439 138,150 108,936
Allowance to Loans and Leases Outstanding 1.73 % 1.47 % 1.00 % 1.00 %
Capital Ratios ^4^
Common Equity Tier 1 Capital Ratio 12.11 % 12.04 % 12.18 % 12.33 %
Tier 1 Capital Ratio 12.11 12.04 12.18 12.33
Total Capital Ratio 13.36 13.29 13.28 13.44
Tier 1 Leverage Ratio 6.81 6.90 7.25 7.32
Total Shareholders' Equity to Total Assets 6.77 6.84 7.11 7.31
Tangible Common Equity to Tangible Assets ^5^ 6.63 6.69 6.95 7.14
Tangible Common Equity to Risk-Weighted Assets^5^ 12.03 12.07 11.85 12.10
Non-Financial Data
Full-Time Equivalent Employees 2,038 2,112 2,124 2,124
Branches 67 67 68 67
ATMs 358 367 387 379
^1^  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
^2^  Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
^3^  Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.
^4^  Regulatory capital ratios as of September 30, 2020 are preliminary.
^5^Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures.  See Table 2 “Reconciliation of Non-GAAP Financial Measures."
Bank of Hawaii Corporation and Subsidiaries
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Reconciliation of Non-GAAP Financial Measures Table 2
September 30, June 30, December 31, September 30,
(dollars in thousands) 2020 2020 2019 2019
Total Shareholders' Equity $ 1,361,739 $ 1,352,082 $ 1,286,832 $ 1,291,490
Less:Goodwill 31,517 31,517 31,517 31,517
Tangible Common Equity $ 1,330,222 $ 1,320,565 $ 1,255,315 $ 1,259,973
Total Assets $ 20,109,489 $ 19,769,942 $ 18,095,496 $ 17,672,140
Less:Goodwill 31,517 31,517 31,517 31,517
Tangible Assets $ 20,077,972 $ 19,738,425 $ 18,063,979 $ 17,640,623
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements $ 11,068,888 $ 10,941,894 $ 10,589,061 $ 10,416,560
Total Shareholders' Equity to Total Assets 6.77 % 6.84 % 7.11 % 7.31 %
Tangible Common Equity to Tangible Assets (Non-GAAP) 6.63 % 6.69 % 6.95 % 7.14 %
Tier 1 Capital Ratio 12.11 % 12.04 % 12.18 % 12.33 %
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 12.03 % 12.07 % 11.85 % 12.10 %
Note:  Risk-Weighted Assets and Regulatory capital ratios as of September 30, 2020 are preliminary.
Bank of Hawaii Corporation and Subsidiaries
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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) 2020 2020 2019 2020 2019
Interest Income
Interest and Fees on Loans and Leases $ 103,189 $ 107,628 $ 110,877 $ 319,027 $ 329,789
Income on Investment Securities
Available-for-Sale 14,558 14,576 17,512 45,845 46,016
Held-to-Maturity 15,967 16,723 18,796 51,942 62,866
Deposits 3 1 9 13 33
Funds Sold 149 92 656 787 2,830
Other 151 125 233 494 762
Total Interest Income 134,017 139,145 148,083 418,108 442,296
Interest Expense
Deposits 5,891 7,954 18,055 28,105 51,967
Securities Sold Under Agreements to Repurchase 3,622 4,020 4,257 11,667 13,451
Funds Purchased - 18 146 90 815
Short-Term Borrowings 1 22 1 62 38
Other Debt 337 440 728 1,361 2,195
Total Interest Expense 9,851 12,454 23,187 41,285 68,466
Net Interest Income 124,166 126,691 124,896 376,823 373,830
Provision for Credit Losses 28,600 40,400 4,250 102,600 11,250
Net Interest Income After Provision for Credit Losses 95,566 86,291 120,646 274,223 362,580
Noninterest Income
Trust and Asset Management 10,752 10,550 10,930 32,217 33,076
Mortgage Banking 4,047 4,278 4,864 11,020 10,487
Service Charges on Deposit Accounts 6,027 5,097 7,592 18,575 22,239
Fees, Exchange, and Other Service Charges 12,296 9,417 14,900 34,913 43,360
Investment Securities Gains (Losses), Net (1,121 ) 13,216 (1,469 ) 11,125 (3,080 )
Annuity and Insurance 881 883 1,278 2,692 5,662
Bank-Owned Life Insurance 1,806 1,649 1,647 5,035 5,136
Other 7,046 6,178 6,765 23,574 18,756
Total Noninterest Income 41,734 51,268 46,507 139,151 135,636
Noninterest Expense
Salaries and Benefits 51,951 50,715 54,345 157,129 164,442
Net Occupancy 7,281 8,761 8,803 24,997 24,976
Net Equipment 9,223 8,195 7,637 25,874 21,365
Data Processing 4,691 4,416 4,676 13,895 13,929
Professional Fees 2,743 3,061 2,184 9,012 6,814
FDIC Insurance 1,282 1,558 1,257 4,296 3,816
Other 12,778 12,186 21,447 39,950 50,789
Total Noninterest Expense 89,949 88,892 100,349 275,153 286,131
Income Before Provision for Income Taxes 47,351 48,667 66,804 138,221 212,085
Provision for Income Taxes 9,511 9,759 14,752 26,731 44,315
Net Income $ 37,840 $ 38,908 $ 52,052 $ 111,490 $ 167,770
Basic Earnings Per Share $ 0.95 $ 0.98 $ 1.30 $ 2.81 $ 4.14
Diluted Earnings Per Share $ 0.95 $ 0.98 $ 1.29 $ 2.80 $ 4.11
Dividends Declared Per Share $ 0.67 $ 0.67 $ 0.65 $ 2.01 $ 1.92
Basic Weighted Average Shares 39,745,120 39,703,735 40,190,508 39,710,252 40,554,036
Diluted Weighted Average Shares 39,869,135 39,832,475 40,450,742 39,872,406 40,806,295
Bank of Hawaii Corporation and Subsidiaries
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Consolidated Statements of Comprehensive Income Table 4
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,
(dollars in thousands) 2020 2020 2019 2020 2019
Net Income $ 37,840 $ 38,908 $ 52,052 $ 111,490 $ 167,770
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities (4,900 ) 7,730 5,405 44,389 28,533
Defined Benefit Plans 374 374 245 1,122 736
Other Comprehensive Income (Loss) (4,526 ) 8,104 5,650 45,511 29,269
Comprehensive Income $ 33,314 $ 47,012 $ 57,702 $ 157,001 $ 197,039
Bank of Hawaii Corporation and Subsidiaries
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Consolidated Statements of Condition Table 5
June 30, December 31, September 30,
(dollars in thousands) 2020 2019 2019
Assets
Interest-Bearing Deposits in Other Banks 4,233 $ 2,310 $ 4,979 $ 2,946
Funds Sold 736,524 800,857 254,574 108,446
Investment Securities
Available-for-Sale 3,190,313 2,726,478 2,619,003 2,594,394
Held-to-Maturity (Fair Value of 3,288,668; 3,374,294; 3,062,882; and 2,972,273) 3,198,830 3,276,829 3,042,294 2,946,910
Loans Held for Sale - 20,711 39,062 36,720
Loans and Leases 11,793,608 11,805,370 10,990,892 10,881,298
Allowance for Credit Losses (203,496 ) (173,439 ) (110,027 ) (108,936 )
Net Loans and Leases 11,590,112 11,631,931 10,880,865 10,772,362
Total Earning Assets 18,720,012 18,459,116 16,840,777 16,461,778
Cash and Due from Banks 260,167 242,423 299,105 259,492
Premises and Equipment, Net 199,021 198,582 188,388 179,453
Operating Lease Right-of-Use Assets 96,200 97,166 100,838 101,005
Accrued Interest Receivable 57,370 50,645 46,476 47,897
Foreclosed Real Estate 2,332 2,506 2,737 2,939
Mortgage Servicing Rights 21,887 22,904 25,022 24,408
Goodwill 31,517 31,517 31,517 31,517
Bank-Owned Life Insurance 291,231 291,185 287,962 286,936
Other Assets 429,752 373,898 272,674 276,715
Total Assets 20,109,489 $ 19,769,942 $ 18,095,496 $ 17,672,140
Liabilities
Deposits
Noninterest-Bearing Demand 5,428,567 $ 5,485,015 $ 4,489,525 $ 4,392,706
Interest-Bearing Demand 3,824,448 3,437,654 3,127,205 3,000,865
Savings 6,763,891 6,821,710 6,365,321 6,141,098
Time 1,721,977 1,678,776 1,802,431 1,806,083
Total Deposits 17,738,883 17,423,155 15,784,482 15,340,752
Securities Sold Under Agreements to Repurchase 602,106 603,206 604,306 604,299
Other Debt 60,502 60,524 85,565 110,585
Operating Lease Liabilities 103,869 104,741 108,210 108,264
Retirement Benefits Payable 43,505 43,833 44,504 39,682
Accrued Interest Payable 6,613 7,775 8,040 8,435
Taxes Payable and Deferred Taxes 12,124 38,297 16,085 21,089
Other Liabilities 180,148 136,329 157,472 147,544
Total Liabilities 18,747,750 18,417,860 16,808,664 16,380,650
Shareholders' Equity
Common Stock (.01 par value; authorized 500,000,000 shares;
issued / outstanding: September 30, 2020 - 58,248,690 / 40,060,675;
June 30, 2020 - 58,263,452 / 40,047,694; December 31, 2019 - 58,166,910 / 40,039,695;
and September 30, 2019 - 58,176,305 / 40,359,259) 580 580 579 579
Capital Surplus 588,632 586,946 582,566 580,200
Accumulated Other Comprehensive Gain (Loss) 14,399 18,925 (31,112 ) (21,774 )
Retained Earnings 1,797,763 1,786,351 1,761,415 1,730,437
Treasury Stock, at Cost (Shares: September 30, 2020 - 18,188,015; June 30, 2020 - 18,215,758;
December 31, 2019 - 18,127,215; and September 30, 2019 - 17,817,046) (1,039,635 ) (1,040,720 ) (1,026,616 ) (997,952 )
Total Shareholders' Equity 1,361,739 1,352,082 1,286,832 1,291,490
Total Liabilities and Shareholders' Equity 20,109,489 $ 19,769,942 $ 18,095,496 $ 17,672,140

All values are in US Dollars.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity Table 6
Accum.
Other
Compre-
hensive
Common Capital Income Retained Treasury
(dollars in thousands) Stock Surplus (Loss) Earnings Stock Total
Balance as of December 31, 2019 40,039,695 $ 579 $ 582,566 $ (31,112 ) $ 1,761,415 $ (1,026,616 ) $ 1,286,832
Net Income - - - - 111,490 - 111,490
Other Comprehensive Income - - - 45,511 - - 45,511
Cumulative Change in Accounting Principle - - - - 3,632 - 3,632
Share-Based Compensation - - 5,347 - - - 5,347
Common Stock Issued under Purchase and Equity
Compensation Plans 222,682 1 719 - 1,762 4,878 7,360
Common Stock Repurchased (201,702 ) - - - - (17,897 ) (17,897 )
Cash Dividends Declared (2.01 per share) - - - - (80,536 ) - (80,536 )
Balance as of September 30, 2020 40,060,675 $ 580 $ 588,632 $ 14,399 $ 1,797,763 $ (1,039,635 ) $ 1,361,739
Balance as of December 31, 2018 41,499,898 $ 577 $ 571,704 $ (51,043 ) $ 1,641,314 $ (894,352 ) $ 1,268,200
Net Income - - - - 167,770 - 167,770
Other Comprehensive Income - - - 29,269 - - 29,269
Share-Based Compensation - - 6,662 - - - 6,662
Common Stock Issued under Purchase and Equity
Compensation Plans 200,984 2 1,834 - (109 ) 4,275 6,002
Common Stock Repurchased (1,341,623 ) - - - - (107,875 ) (107,875 )
Cash Dividends Declared (1.92 per share) - - - - (78,538 ) - (78,538 )
Balance as of September 30, 2019 40,359,259 $ 579 $ 580,200 $ (21,774 ) $ 1,730,437 $ (997,952 ) $ 1,291,490

All values are in US Dollars.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis Table 7a
Three Months Ended Three Months Ended
June 30, 2020 September 30, 2019
Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
(dollars in millions) Expense Rate Balance Expense Rate Balance Expense Rate
Earning Assets
Interest-Bearing Deposits in Other Banks 2.6 $ - 0.45 % $ 2.6 $ - 0.18 % $ 3.1 $ - 1.19 %
Funds Sold 584.2 0.1 0.10 545.9 0.1 0.07 121.1 0.7 2.12
Investment Securities
Available-for-Sale
Taxable 2,918.6 14.3 1.96 2,614.1 14.3 2.19 2,647.9 17.1 2.59
Non-Taxable 25.8 0.3 4.22 32.2 0.4 4.45 42.6 0.5 4.45
Held-to-Maturity
Taxable 3,257.7 15.7 1.93 2,957.6 16.4 2.22 2,873.7 18.5 2.57
Non-Taxable 54.1 0.4 2.66 54.4 0.4 2.66 65.2 0.4 2.72
Total Investment Securities 6,256.2 30.7 1.96 5,658.3 31.5 2.22 5,629.4 36.5 2.59
Loans Held for Sale 15.9 0.1 3.24 23.4 0.2 3.24 24.3 0.2 3.94
Loans and Leases 1
Commercial and Industrial 1,917.0 14.1 2.93 1,963.8 17.9 3.67 1,383.8 14.4 4.14
Commercial Mortgage 2,722.3 21.7 3.18 2,622.9 22.3 3.42 2,423.7 26.2 4.28
Construction 234.0 2.1 3.60 255.8 2.5 3.93 126.0 1.6 5.10
Commercial Lease Financing 110.7 0.5 1.82 110.9 0.5 1.88 161.8 1.0 2.57
Residential Mortgage 3,988.7 36.7 3.68 3,939.6 36.0 3.65 3,809.6 36.5 3.83
Home Equity 1,625.2 14.1 3.45 1,665.2 14.3 3.45 1,689.2 16.1 3.79
Automobile 708.3 6.4 3.59 701.2 6.2 3.55 707.0 6.4 3.59
Other 2 433.6 7.6 6.96 468.2 7.9 6.77 469.6 8.5 7.16
Total Loans and Leases 11,739.8 103.2 3.50 11,727.6 107.6 3.68 10,770.7 110.7 4.09
Other 33.3 0.2 1.81 34.0 0.1 1.47 35.0 0.3 2.66
Total Earning Assets 3 18,632.0 134.3 2.88 17,991.8 139.5 3.11 16,583.6 148.4 3.56
Cash and Due from Banks 234.3 302.4 231.5
Other Assets 874.8 895.4 790.3
Total Assets 19,741.1 $ 19,189.6 $ 17,605.4
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand 3,465.5 0.4 0.04 $ 3,226.6 0.6 0.07 $ 2,950.2 1.1 0.15
Savings 6,886.0 1.7 0.10 6,691.4 2.2 0.13 6,122.0 8.8 0.57
Time 1,568.3 3.8 0.97 1,826.8 5.2 1.13 1,851.0 8.2 1.75
Total Interest-Bearing Deposits 11,919.8 5.9 0.20 11,744.8 8.0 0.27 10,923.2 18.1 0.66
Short-Term Borrowings - - - 57.6 - 0.28 27.1 0.1 2.13
Securities Sold Under Agreements to Repurchase 602.9 3.6 2.35 602.9 4.0 2.64 513.8 4.3 3.24
Other Debt 60.5 0.3 2.22 60.5 0.5 2.91 110.6 0.7 2.62
Total Interest-Bearing Liabilities 12,583.2 9.8 0.31 12,465.8 12.5 0.40 11,574.7 23.2 0.79
Net Interest Income $ 124.5 $ 127.0 $ 125.2
Interest Rate Spread 2.57 % 2.71 % 2.77 %
Net Interest Margin 2.67 % 2.83 % 3.01 %
Noninterest-Bearing Demand Deposits 5,350.4 4,934.7 4,407.5
Other Liabilities 439.7 437.8 333.8
Shareholders' Equity 1,367.8 1,351.3 1,289.4
Total Liabilities and Shareholders' Equity 19,741.1 $ 19,189.6 $ 17,605.4
1  Non-performing loans and leases are included in the respective average loan and lease balances.  Income, if any, on such loans and leases is recognized on a cash basis.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.
3  Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of 295,000, 358,000, and 296,000 for the three months ended September 30, 2020, June 30, 2020, and September 30, 2019, respectively.

All values are in US Dollars.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis Table 7b
Nine Months Ended
September 30, 2019
Income/ Yield/ Average Income/ Yield/
(dollars in millions) Expense Rate Balance Expense Rate
Earning Assets
Interest-Bearing Deposits in Other Banks 2.2 $ - 0.76 % $ 3.0 $ - 1.49 %
Funds Sold 428.3 0.8 0.24 161.7 2.8 2.31
Investment Securities
Available-for-Sale
Taxable 2,745.7 45.1 2.19 2,086.5 43.0 2.75
Non-Taxable 30.1 1.0 4.37 135.3 3.8 3.73
Held-to-Maturity
Taxable 3,084.4 51.0 2.21 3,199.9 59.9 2.50
Non-Taxable 54.4 1.1 2.66 163.5 3.8 3.08
Total Investment Securities 5,914.6 98.2 2.21 5,585.2 110.5 2.64
Loans Held for Sale 20.8 0.5 3.35 18.5 0.6 4.06
Loans and Leases 1
Commercial and Industrial 1,763.9 45.2 3.43 1,375.9 44.6 4.33
Commercial Mortgage 2,631.9 69.2 3.51 2,373.9 76.9 4.33
Construction 234.3 7.1 4.04 133.8 5.2 5.22
Commercial Lease Financing 111.0 1.6 1.88 160.9 3.0 2.45
Residential Mortgage 3,941.3 109.5 3.70 3,740.5 108.0 3.85
Home Equity 1,656.8 43.6 3.51 1,691.4 48.4 3.83
Automobile 710.2 19.0 3.57 688.0 18.6 3.62
Other 2 460.8 23.9 6.93 459.9 24.8 7.21
Total Loans and Leases 11,510.2 319.1 3.70 10,624.3 329.5 4.14
Other 33.9 0.5 1.95 35.2 0.8 2.89
Total Earning Assets 3 17,910.0 419.1 3.12 16,427.9 444.2 3.61
Cash and Due from Banks 271.7 237.9
Other Assets 871.9 776.3
Total Assets 19,053.6 $ 17,442.1
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand 3,268.1 1.9 0.08 $ 2,930.9 4.0 0.18
Savings 6,693.9 11.0 0.22 5,962.9 24.4 0.55
Time 1,712.2 15.2 1.19 1,807.6 23.6 1.75
Total Interest-Bearing Deposits 11,674.2 28.1 0.32 10,701.4 52.0 0.65
Short-Term Borrowings 38.3 0.2 0.52 46.8 0.9 2.40
Securities Sold Under Agreements to Repurchase 603.4 11.6 2.54 507.5 13.4 3.50
Other Debt 62.6 1.4 2.90 113.7 2.2 2.58
Total Interest-Bearing Liabilities 12,378.5 41.3 0.44 11,369.4 68.5 0.80
Net Interest Income $ 377.8 $ 375.7
Interest Rate Spread 2.68 % 2.81 %
Net Interest Margin 2.82 % 3.05 %
Noninterest-Bearing Demand Deposits 4,917.4 4,454.9
Other Liabilities 413.3 342.0
Shareholders' Equity 1,344.4 1,275.8
Total Liabilities and Shareholders' Equity 19,053.6 $ 17,442.1
1  Non-performing loans and leases are included in the respective average loan and lease balances.  Income, if any, on such loans and leases is recognized on a cash basis.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.
3  Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of 1,010,000 and 1,878,000 for the nine months ended September 30, 2020 and September 30, 2019, respectively.

All values are in US Dollars.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8a
Three Months Ended September 30, 2020
Compared to June 30, 2020
(dollars in millions) Volume ^1^ Rate ^1^ Total
Change in Interest Income:
Investment Securities
Available-for-Sale
Taxable $ 1.6 $ (1.6 ) $ -
Non-Taxable (0.1 ) - (0.1 )
Held-to-Maturity
Taxable 1.6 (2.3 ) (0.7 )
Total Investment Securities 3.1 (3.9 ) (0.8 )
Loans Held for Sale (0.1 ) - (0.1 )
Loans and Leases
Commercial and Industrial (0.4 ) (3.4 ) (3.8 )
Commercial Mortgage 0.9 (1.5 ) (0.6 )
Construction (0.2 ) (0.2 ) (0.4 )
Residential Mortgage 0.5 0.2 0.7
Home Equity (0.2 ) - (0.2 )
Automobile 0.1 0.1 0.2
Other ^2^ (0.5 ) 0.2 (0.3 )
Total Loans and Leases 0.2 (4.6 ) (4.4 )
Other - 0.1 0.1
Total Change in Interest Income 3.2 (8.4 ) (5.2 )
Change in Interest Expense:
Interest-Bearing Deposits
Demand - (0.2 ) (0.2 )
Savings 0.1 (0.6 ) (0.5 )
Time (0.7 ) (0.7 ) (1.4 )
Total Interest-Bearing Deposits (0.6 ) (1.5 ) (2.1 )
Securities Sold Under Agreements to Repurchase - (0.4 ) (0.4 )
Other Debt - (0.2 ) (0.2 )
Total Change in Interest Expense (0.6 ) (2.1 ) (2.7 )
Change in Net Interest Income $ 3.8 $ (6.3 ) $ (2.5 )
^1^ The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
^2^  Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- ---
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8b
Three Months Ended September 30, 2020
Compared to September 30, 2019
(dollars in millions) Volume ^1^ Rate ^1^ Total
Change in Interest Income:
Funds Sold $ 0.6 $ (1.2 ) $ (0.6 )
Investment Securities
Available-for-Sale
Taxable 1.6 (4.4 ) (2.8 )
Non-Taxable (0.2 ) - (0.2 )
Held-to-Maturity
Taxable 2.2 (5.0 ) (2.8 )
Total Investment Securities 3.6 (9.4 ) (5.8 )
Loans Held for Sale (0.1 ) - (0.1 )
Loans and Leases
Commercial and Industrial 4.6 (4.9 ) (0.3 )
Commercial Mortgage 2.9 (7.4 ) (4.5 )
Construction 1.1 (0.6 ) 0.5
Commercial Lease Financing (0.3 ) (0.2 ) (0.5 )
Residential Mortgage 1.7 (1.5 ) 0.2
Home Equity (0.6 ) (1.4 ) (2.0 )
Other ^2^ (0.6 ) (0.3 ) (0.9 )
Total Loans and Leases 8.8 (16.3 ) (7.5 )
Other - (0.1 ) (0.1 )
Total Change in Interest Income 12.9 (27.0 ) (14.1 )
Change in Interest Expense:
Interest-Bearing Deposits
Demand 0.2 (0.9 ) (0.7 )
Savings 1.0 (8.1 ) (7.1 )
Time (1.2 ) (3.2 ) (4.4 )
Total Interest-Bearing Deposits - (12.2 ) (12.2 )
Short-Term Borrowings (0.1 ) - (0.1 )
Securities Sold Under Agreements to Repurchase 0.6 (1.3 ) (0.7 )
Other Debt (0.3 ) (0.1 ) (0.4 )
Total Change in Interest Expense 0.2 (13.6 ) (13.4 )
Change in Net Interest Income $ 12.7 $ (13.4 ) $ (0.7 )
^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
--- --- --- --- --- --- --- --- --- ---
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8c
Nine Months Ended September 30, 2020
Compared to September 30, 2019
(dollars in millions) Volume ^1^ Rate ^1^ Total
Change in Interest Income:
Funds Sold $ 2.0 $ (4.0 ) $ (2.0 )
Investment Securities
Available-for-Sale
Taxable 12.0 (9.9 ) 2.1
Non-Taxable (3.4 ) 0.6 (2.8 )
Held-to-Maturity
Taxable (2.1 ) (6.8 ) (8.9 )
Non-Taxable (2.2 ) (0.5 ) (2.7 )
Total Investment Securities 4.3 (16.6 ) (12.3 )
Loans Held for Sale 0.1 (0.2 ) (0.1 )
Loans and Leases
Commercial and Industrial 11.1 (10.5 ) 0.6
Commercial Mortgage 7.8 (15.5 ) (7.7 )
Construction 3.3 (1.4 ) 1.9
Commercial Lease Financing (0.8 ) (0.6 ) (1.4 )
Residential Mortgage 5.6 (4.1 ) 1.5
Home Equity (0.9 ) (3.9 ) (4.8 )
Automobile 0.6 (0.2 ) 0.4
Other ^2^ - (0.9 ) (0.9 )
Total Loans and Leases 26.7 (37.1 ) (10.4 )
Other (0.1 ) (0.2 ) (0.3 )
Total Change in Interest Income 33.0 (58.1 ) (25.1 )
Change in Interest Expense:
Interest-Bearing Deposits
Demand 0.4 (2.5 ) (2.1 )
Savings 2.7 (16.1 ) (13.4 )
Time (1.2 ) (7.2 ) (8.4 )
Total Interest-Bearing Deposits 1.9 (25.8 ) (23.9 )
Short-Term Borrowings (0.1 ) (0.6 ) (0.7 )
Securities Sold Under Agreements to Repurchase 2.3 (4.1 ) (1.8 )
Other Debt (1.1 ) 0.3 (0.8 )
Total Change in Interest Expense 3.0 (30.2 ) (27.2 )
Change in Net Interest Income $ 30.0 $ (27.9 ) $ 2.1
^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 Nine Months Ended
September 30, June 30, September 30, September 30,
(dollars in thousands) 2020 2020 2019 2020 2019
Salaries $ 34,046 $ 32,739 $ 33,458 $ 100,271 $ 98,772
Incentive Compensation 2,683 3,141 5,681 6,069 17,049
Share-Based Compensation 1,442 2,021 2,025 4,754 7,098
Commission Expense 1,800 1,647 1,760 4,821 4,394
Retirement and Other Benefits 4,164 4,446 4,185 13,316 13,872
Payroll Taxes 2,624 2,782 2,519 9,949 9,409
Medical, Dental, and Life Insurance 3,422 3,830 3,908 11,394 12,299
Separation Expense 1,770 109 809 6,555 1,549
Total Salaries and Benefits $ 51,951 $ 50,715 $ 54,345 $ 157,129 $ 164,442
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- ---
Loan and Lease Portfolio Balances Table 10
September 30, June 30, March 31, December 31, September 30,
(dollars in thousands) 2020 2020 2020 2019 2019
Commercial
Commercial and Industrial $ 1,908,482 $ 1,956,939 $ 1,558,232 $ 1,379,152 $ 1,361,011
Commercial Mortgage 2,745,611 2,707,534 2,616,243 2,518,051 2,477,296
Construction 250,943 245,099 245,390 194,170 154,754
Lease Financing 111,831 113,187 110,704 122,454 163,672
Total Commercial 5,016,867 5,022,759 4,530,569 4,213,827 4,156,733
Consumer
Residential Mortgage 4,044,228 3,989,393 3,928,183 3,891,100 3,846,511
Home Equity 1,605,486 1,640,887 1,692,154 1,676,073 1,681,951
Automobile 709,937 700,702 716,214 720,286 713,424
Other ^1^ 417,090 451,629 485,660 489,606 482,679
Total Consumer 6,776,741 6,782,611 6,822,211 6,777,065 6,724,565
Total Loans and Leases $ 11,793,608 $ 11,805,370 $ 11,352,780 $ 10,990,892 $ 10,881,298
Deposits
September 30, June 30, March 31, December 31, September 30,
(dollars in thousands) 2020 2020 2020 2019 2019
Consumer $ 8,903,808 $ 8,766,885 $ 8,294,464 $ 8,118,494 $ 7,893,454
Commercial 7,159,531 7,295,033 6,358,583 6,324,214 6,153,492
Public and Other 1,675,544 1,361,237 1,402,314 1,341,774 1,293,806
Total Deposits $ 17,738,883 $ 17,423,155 $ 16,055,361 $ 15,784,482 $ 15,340,752
^1^  Comprised of other revolving credit, installment, and lease financing.
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 11
September 30, June 30, March 31, December 31, September 30,
(dollars in thousands) 2020 2020 2020 2019 2019
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial $ 475 $ 459 $ 634 $ 830 $ 573
Commercial Mortgage 8,615 8,672 9,048 9,244 11,088
Total Commercial 9,090 9,131 9,682 10,074 11,661
Consumer
Residential Mortgage 3,543 5,888 4,330 4,125 4,258
Home Equity 3,661 5,176 4,086 3,181 2,787
Total Consumer 7,204 11,064 8,416 7,306 7,045
Total Non-Accrual Loans and Leases 16,294 20,195 18,098 17,380 18,706
Foreclosed Real Estate 2,332 2,506 2,506 2,737 2,939
Total Non-Performing Assets $ 18,626 $ 22,701 $ 20,604 $ 20,117 $ 21,645
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial $ - $ - $ - $ - $ 81
Total Commercial - - - - 81
Consumer
Residential Mortgage 6,607 4,937 3,024 1,839 2,032
Home Equity 2,571 3,519 3,426 4,125 2,320
Automobile 156 133 866 949 582
Other^1^ 258 296 1,205 1,493 1,076
Total Consumer 9,592 8,885 8,521 8,406 6,010
Total Accruing Loans and Leases Past Due 90 Days or More $ 9,592 $ 8,885 $ 8,521 $ 8,406 $ 6,091
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More $ 58,650 $ 59,713 $ 61,425 $ 63,103 $ 46,178
Total Loans and Leases $ 11,793,608 $ 11,805,370 $ 11,352,780 $ 10,990,892 $ 10,881,298
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases 0.14 % 0.17 % 0.16 % 0.16 % 0.17 %
Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate 0.16 % 0.19 % 0.18 % 0.18 % 0.20 %
Ratio of Commercial Non-Performing Assets to Total Commercial Loans
and Leases and Commercial Foreclosed Real Estate 0.18 % 0.18 % 0.21 % 0.24 % 0.28 %
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate 0.14 % 0.20 % 0.16 % 0.15 % 0.15 %
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 0.24 % 0.27 % 0.26 % 0.26 % 0.25 %
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter $ 22,701 $ 20,604 $ 20,117 $ 21,645 $ 21,782
Additions 938 5,856 1,754 883 1,035
Reductions
Payments (3,729 ) (2,736 ) (315 ) (495 ) (984 )
Return to Accrual Status (1,035 ) (822 ) (437 ) (1,673 ) -
Sales of Foreclosed Real Estate (175 ) - (231 ) (201 ) -
Charge-offs/Write-downs (74 ) (201 ) (284 ) (42 ) (188 )
Total Reductions (5,013 ) (3,759 ) (1,267 ) (2,411 ) (1,172 )
Balance at End of Quarter $ 18,626 $ 22,701 $ 20,604 $ 20,117 $ 21,645
^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 Nine Months Ended
September 30, June 30, September 30, September 30,
(dollars in thousands) 2020 2020 2019 2020 2019
Balance at Beginning of Period $ 175,958 $ 141,467 114,494 $ 116,849 113,515
CECL Adoption (Day 1) Impact - - - (5,072 ) -
Loans and Leases Charged-Off
Commercial
Commercial and Industrial (171 ) (656 ) (239 ) (1,520 ) (815 )
Commercial Mortgage - - - - (1,616 )
Consumer
Residential Mortgage - (64 ) (7 ) (84 ) (62 )
Home Equity (43 ) (273 ) (215 ) (316 ) (655 )
Automobile (489 ) (3,114 ) (1,696 ) (6,103 ) (5,140 )
Other ^1^ (1,644 ) (4,176 ) (3,598 ) (9,784 ) (9,424 )
Total Loans and Leases Charged-Off (2,347 ) (8,283 ) (5,755 ) (17,807 ) (17,712 )
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial 231 1,524 318 2,044 1,220
Commercial Mortgage - - - 40 -
Consumer
Residential Mortgage 414 118 649 795 1,228
Home Equity 727 321 428 2,024 1,762
Automobile 1,313 547 660 2,865 2,449
Other ^1^ 1,119 662 714 2,645 2,046
Total Recoveries on Loans and Leases Previously Charged-Off 3,804 3,172 2,769 10,413 8,705
Net Loans and Leases Recovered (Charged-Off) 1,457 (5,111 ) (2,986 ) (7,394 ) (9,007 )
Provision for Credit Losses 28,600 40,400 4,250 102,600 11,250
Provision for Unfunded Commitments (202 ) (798 ) - (1,170 ) -
Balance at End of Period ^2^ $ 205,813 $ 175,958 $ 115,758 $ 205,813 $ 115,758
Components
Allowance for Credit Losses $ 203,496 173,439 108,936 $ 203,496 108,936
Reserve for Unfunded Commitments 2,317 2,519 6,822 2,317 6,822
Total Reserve for Credit Losses $ 205,813 $ 175,958 $ 115,758 $ 205,813 $ 115,758
Average Loans and Leases Outstanding $ 11,739,785 $ 11,727,649 $ 10,770,720 $ 11,510,222 $ 10,624,311
Ratio of Net Loans and Leases Charged-Off (Recovered) to
Average Loans and Leases Outstanding (annualized) (0.05 %) 0.18 % 0.11 % 0.09 % 0.11 %
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 1.73 % 1.47 % 1.00 % 1.73 % 1.00 %
^1^  Comprised of other revolving credit, installment, and lease financing.
^2^  Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- ---
Business Segments Selected Financial Information Table 13a
Consumer Commercial Treasury Consolidated
(dollars in thousands) Banking Banking and Other Total
Three Months Ended September 30, 2020
Net Interest Income $ 73,868 $ 47,797 $ 2,501 $ 124,166
Provision for Credit Losses (1,372 ) (85 ) 30,057 28,600
Net Interest Income (Loss) After Provision for Credit Losses 75,240 47,882 (27,556 ) 95,566
Noninterest Income 31,776 7,672 2,286 41,734
Noninterest Expense (69,408 ) (15,430 ) (5,111 ) (89,949 )
Income (Loss) Before Income Taxes 37,608 40,124 (30,381 ) 47,351
Provision for Income Taxes (9,627 ) (9,784 ) 9,900 (9,511 )
Net Income (Loss) $ 27,981 $ 30,340 $ (20,481 ) $ 37,840
Total Assets as of September 30, 2020 $ 7,383,822 $ 5,027,836 $ 7,697,831 $ 20,109,489
Three Months Ended September 30, 2019 ^1^
Net Interest Income $ 76,289 $ 46,791 $ 1,816 $ 124,896
Provision for Credit Losses 3,116 (130 ) 1,264 4,250
Net Interest Income After Provision for Credit Losses 73,173 46,921 552 120,646
Noninterest Income 36,627 8,739 1,141 46,507
Noninterest Expense (75,198 ) (21,330 ) (3,821 ) (100,349 )
Income (Loss) Before Income Taxes 34,602 34,330 (2,128 ) 66,804
Provision for Income Taxes (8,506 ) (8,560 ) 2,314 (14,752 )
Net Income $ 26,096 $ 25,770 $ 186 $ 52,052
Total Assets as of September 30, 2019 ^1^ $ 6,993,290 $ 4,145,717 $ 6,533,133 $ 17,672,140
^1^Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawaii 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, 2020 ^1^
Net Interest Income $ 221,003 $ 144,253 $ 11,567 $ 376,823
Provision for Credit Losses 8,215 (819 ) 95,204 102,600
Net Interest Income (Loss) After Provision for Credit Losses 212,788 145,072 (83,637 ) 274,223
Noninterest Income 93,309 26,483 19,359 139,151
Noninterest Expense (210,744 ) (47,552 ) (16,857 ) (275,153 )
Income (Loss) Before Income Taxes 95,353 124,003 (81,135 ) 138,221
Provision for Income Taxes (24,235 ) (30,278 ) 27,782 (26,731 )
Net Income (Loss) $ 71,118 $ 93,725 $ (53,353 ) $ 111,490
Total Assets as of September 30, 2020 $ 7,383,822 $ 5,027,836 $ 7,697,831 $ 20,109,489
Nine Months Ended September 30, 2019 ^1^
Net Interest Income $ 229,704 $ 139,784 $ 4,342 $ 373,830
Provision for Credit Losses 7,866 1,141 2,243 11,250
Net Interest Income After Provision for Credit Losses 221,838 138,643 2,099 362,580
Noninterest Income 107,072 22,738 5,826 135,636
Noninterest Expense (213,168 ) (63,545 ) (9,418 ) (286,131 )
Income Before Income Taxes 115,742 97,836 (1,493 ) 212,085
Provision for Income Taxes (28,745 ) (22,507 ) 6,937 (44,315 )
Net Income $ 86,997 $ 75,329 $ 5,444 $ 167,770
Total Assets as of September 30, 2019 ^1^ $ 6,993,290 $ 4,145,717 $ 6,533,133 $ 17,672,140
^1^Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawaii 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) 2020 2020 2020 2019 2019
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases $ 103,189 $ 107,628 $ 108,210 $ 109,223 $ 110,877
Income on Investment Securities
Available-for-Sale 14,558 14,576 16,711 16,158 17,512
Held-to-Maturity 15,967 16,723 19,252 18,750 18,796
Deposits 3 1 9 8 9
Funds Sold 149 92 546 723 656
Other 151 125 218 239 233
Total Interest Income 134,017 139,145 144,946 145,101 148,083
Interest Expense
Deposits 5,891 7,954 14,260 16,407 18,055
Securities Sold Under Agreements to Repurchase 3,622 4,020 4,025 4,071 4,257
Funds Purchased - 18 72 25 146
Short-Term Borrowings 1 22 39 - 1
Other Debt 337 440 584 713 728
Total Interest Expense 9,851 12,454 18,980 21,216 23,187
Net Interest Income 124,166 126,691 125,966 123,885 124,896
Provision for Credit Losses 28,600 40,400 33,600 4,750 4,250
Net Interest Income After Provision for Credit Losses 95,566 86,291 92,366 119,135 120,646
Noninterest Income
Trust and Asset Management 10,752 10,550 10,915 11,157 10,930
Mortgage Banking 4,047 4,278 2,695 3,199 4,864
Service Charges on Deposit Accounts 6,027 5,097 7,451 7,835 7,592
Fees, Exchange, and Other Service Charges 12,296 9,417 13,200 14,533 14,900
Investment Securities Gains (Losses), Net (1,121 ) 13,216 (970 ) (906 ) (1,469 )
Annuity and Insurance 881 883 928 1,272 1,278
Bank-Owned Life Insurance 1,806 1,649 1,580 1,879 1,647
Other 7,046 6,178 10,350 8,733 6,765
Total Noninterest Income 41,734 51,268 46,149 47,702 46,507
Noninterest Expense
Salaries and Benefits 51,951 50,715 54,463 51,664 54,345
Net Occupancy 7,281 8,761 8,955 8,824 8,803
Net Equipment 9,223 8,195 8,456 7,930 7,637
Data Processing 4,691 4,416 4,788 4,828 4,676
Professional Fees 2,743 3,061 3,208 3,257 2,184
FDIC Insurance 1,282 1,558 1,456 1,376 1,257
Other 12,778 12,186 14,986 15,217 21,447
Total Noninterest Expense 89,949 88,892 96,312 93,096 100,349
Income Before Provision for Income Taxes 47,351 48,667 42,203 73,741 66,804
Provision for Income Taxes 9,511 9,759 7,461 15,598 14,752
Net Income $ 37,840 $ 38,908 $ 34,742 $ 58,143 $ 52,052
Basic Earnings Per Share $ 0.95 $ 0.98 $ 0.88 $ 1.46 $ 1.30
Diluted Earnings Per Share $ 0.95 $ 0.98 $ 0.87 $ 1.45 $ 1.29
Balance Sheet Totals
Loans and Leases $ 11,793,608 $ 11,805,370 $ 11,352,780 $ 10,990,892 $ 10,881,298
Total Assets 20,109,489 19,769,942 18,542,233 18,095,496 17,672,140
Total Deposits 17,738,883 17,423,155 16,055,361 15,784,482 15,340,752
Total Shareholders' Equity 1,361,739 1,352,082 1,327,929 1,286,832 1,291,490
Performance Ratios
Return on Average Assets 0.76 % 0.82 % 0.77 % 1.29 % 1.17 %
Return on Average Shareholders' Equity 11.01 11.58 10.64 17.84 16.02
Efficiency Ratio ^1^ 54.22 49.95 55.96 54.26 58.55
Net Interest Margin ^2^ 2.67 2.83 2.96 2.95 3.01
^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
Eight Months<br><br><br>Ended Year Ended
($ in millions; jobs in thousands) August 31, 2020 December 31, 2019 December 31, 2018
Hawaii Economic Trends
State General Fund Revenues^1^ $ 4,406.3 (11.1 ) % $ 7,316.5 5.5 % $ 6,933.1 6.9 %
General Excise and Use Tax Revenue^1^ $ 2,118.7 (13.3 ) % $ 3,602.2 5.1 % $ 3,426.5 2.3 %
Jobs ^2^ 557.2 648.9 649.0
August 31, December 31,
(spot rates) 2020 2019 2018
Unemployment^3^
Statewide, seasonally adjusted 12.5 % 2.7 % 2.6 %
Oahu 10.6 2.1 2.2
Island of Hawaii 11.8 2.8 2.9
Maui 20.7 2.2 2.2
Kauai 17.8 2.4 2.3
September 30, December 31,
(percentage change, except months of inventory) 2020 2019 2018 2017
Housing Trends (Single Family Oahu) ^4^
Median Home Price 3.3 % (0.1 ) % 4.6 % 2.7 %
Home Sales Volume (units) (1.4 ) % 3.9 % (7.7 ) % 6.3 %
Months of Inventory 1.9 2.5 2.8 2.1
Monthly Visitor Arrivals, Percentage Change
(in thousands) Not Seasonally Adjusted from Previous Year
Tourism ^5^
August 31, 2020 22.3 (97.6 )
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
December 31, 2019 954.3 6.0
November 30, 2019 811.4 4.2
October 31, 2019 800.4 4.8
September 30, 2019 741.3 3.5
August 31, 2019 926.4 9.6
July 31, 2019 995.2 5.9
June 30, 2019 951.6 6.1
May 31, 2019 841.4 4.6
April 30, 2019 856.3 6.6
March 31, 2019 939.1 3.9
February 28, 2019 782.7 0.5
January 31, 2019 820.6 3.0
December 31, 2018 900.2 2.3
November 30, 2018 778.5 3.9
October 31, 2018 763.7 3.5
September 30, 2018 716.1 2.2
August 31, 2018 845.1 3.2
July 31, 2018 939.4 5.3
June 30, 2018 897.1 7.3
May 31, 2018 804.1 7.0
April 30, 2018 803.0 6.6
March 31, 2018 903.6 12.5
February 28, 2018 778.6 10.3
January 31, 2018 796.5 5.4
^1^Source:  Hawaii Department of Business, Economic Development & Tourism
^2^Source:  U. S. Bureau of Labor Statistics
^3^Source:  Hawaii Department of Labor and Industrial Relations, County jobs data not seasonally adjusted.
^4^Source:  Honolulu Board of REALTORS
^5^Source:  Hawaii Tourism Authority

boh-ex992_144.pptx.htm

Slide 1

Bank of Hawaii Corporation Third Quarter 2020 Financial Results October 26, 2020 Exhibit 99.2

Slide 2

2020 Unemployment Source: UHERO Base Case as of 9/25/20 Hawaii Unemployment Rate Experience & Forecast BAR CHART

Slide 3

Economic Forecast Source: UHERO Forecast Updates Hawaii Unemployment Rate Line Chart

Slide 4

Economic Forecast Personal Income Source: UHERO Forecast Updates BAR CHARTS Real GDP

Slide 5

Hawaii Real Estate Market Oahu Market Indicators – 2020 vs 2019 SINGLE FAMILY HOMES 2020 YTD 2019 YTD % Sep 2020 Sep 2019 % Closed Sales 2,735 2,774 -1.4% 391 347 12.7% Median Sales Price (000s) $811 $785 3.3% $880 $777 13.3% Median Days on Market 17 23 -26.1% 9 29 -69.0% Months of Inventory 1.9 3.5 -45.7% 1.9 3.5 -45.7% CONDOMINIUMS 2020 YTD 2019 YTD % Sep 2020 Sep 2019 % Closed Sales 3,305 4,074 -18.9% 456 466 -2.1% Median Sales Price (000s) $430 $425 1.2% $445 $445 0.0% Median Days on Market 28 26 7.7% 21 27 -22.2% Months of Inventory 4.0 3.9 2.6% 4.0 3.9 2.6% Source: Honolulu Board of Realtors, compiled from MLS data

Slide 6

Daily Arrivals Source: Hawaii Tourism Authority Trans-Pacific Passenger Arrivals in Thousands BAR CHART

Slide 7

COVID-19 Cases Source: USAFacts STATES / TERRITORIES WITH LOWEST CASES IN LAST 7 DAYS PER 100,000 Vermont 13 Maine 16 Hawaii 38 New Hampshire 42 Washington, D.C. 52 Oregon 54 New York 54 California 58 Washington 60 Maryland 71 United States 128 Source: NY Times as of 10/21/2020 Hawaii New COVID-19 Cases (7-Day Average) Line Chart

Slide 8

Strong Credit Metrics Continued Stable Loan Growth Strong Deposit Growth Well Managed Funding Costs Strong Liquidity Solid Capital Levels Well Positioned

Slide 9

Credit Overview

Slide 10

40% Commercial 67% Real Estate Secured Wtd Avg LTV 55% 66% w/ BOH ≥ 10 yrs Avg Balance $0.5 MM CRE C&I Residential Mortgage Home Equity Auto Leasing Other Construction 60% Consumer 83% Real Estate Secured Wtd Avg LTV 56% 56% w/ BOH ≥ 10 yrs 76% of Portfolio Secured with Quality Real Estate with Combined Weighted Average Loan to Value of 56% Note: Excludes $544 MM in PPP loan balances Loan Portfolio Excluding PPP 12% 36% 14% 6% 4% 24% 2% 1%

Slide 11

Credit Quality $ in millions Net Charge-offs Nonperforming Assets Delinquencies Criticized Bar Charts

Slide 12

Portfolio 12/31/2019 CECL adoption impact 1Q20 Build 3/31/2020 2Q20 Build 6/30/2020 3Q20 Build 9/30/2020 Consumer 36.2 17.1 16.9 70.2 30.7 100.9 22.3 123.2 Commercial 73.8 (18.8) 13.0 68.0 4.5 72.5 7.8 80.3 Total 110.0 (1.7) 29.9 138.2 35.2 173.4 30.1 203.5 Coverage 1.00% -0.01% 0.23% 1.22% 0.25% 1.47% 0.26% 1.73% Coverage excluding PPP 1.00% -0.01% 0.23% 1.22% 0.31% 1.53% 0.27% 1.80% Third Quarter 2020 Reserve Build $ in millions

Slide 13

Customer Relief Update Deferrals & Extensions as of 9/30/20 $1,528 million (13.0%) Consumer 5.9% Outstandings Commercial 7.1% Outstandings Total Modifications 13.0% Outstandings Pie charts

Slide 14

Weekly Payment Deferrals Granted 16,778 Accounts as of September 30th Deceleration in Activity Since Peak in April 99% decline since peak Customer Relief Update $ in millions Line Charts

Slide 15

Customer Relief Update $1,013 Million (8.6%) Deferrals & Extensions as of 10/23/20 Consumer 4.5% Outstandings Commercial 4.1% Outstandings Total Modifications 8.6% Outstandings Pie charts

Slide 16

Customer Relief Update 45% Decline from June 30, 2020 8.6% 15.7% 13.0% Deferrals and Extension Timeline Bar Chart

Slide 17

69% Secured with 61% Weighted Average LTV as of 9/30/20 60% Wtd Avg LTV 780 Wtd Avg FICO 3% <700 FICO/>70% LTV 65% Wtd Avg CLTV 752 Wtd Avg FICO 10% <700 FICO/>70% LTV 675 Wtd Avg FICO 42% ≥ 700 FICO 719 Wtd Avg FICO 64% ≥ 700 FICO Consumer Customer Relief * Indirect excludes recourse loans ($23MM) **Other includes Direct Installment loans and Auto Lease. Origination FICO used for Auto Lease. $668 million (5.7%) Bar Chart

Slide 18

85% Secured with 51% Weighted Average LTV as of 9/30/20 51% Wtd Avg LTV 81% ≤ 65% LTV $3.6MM Avg Loan 45% Wtd Avg LTV 48% ≤ 65% LTV $2.1MM Avg Loan $0.3MM Avg Loan Commercial Customer Relief $837 million (7.1%) Bar Chart

Slide 19

all others Lodging` retail retail lodging High Risk Industries $1,456 million (12%) / $1,305 million (11%) Excluding PPP Retail Balance Growth (Q3 V Q2) Lodging Balance Growth (Q3 V Q2) Restaurant/Entertainment Balance Growth (Q3 V Q2) Bar Charts Pie chart

Slide 20

Retail $648 million (5%) - Excluding PPP 91% Real Estate Secured 55% Wtd Avg LTV Average Exposure $3.4 MM Largest Exposure $40 MM 66% of Portfolio has an LTV ≤ 65% 96.9% is Secured or has Essential Anchor 0.9% Unsecured and Deferred 99.95% Secured or Paying Interest Real Estate Secured Secured 91% Unsecured 9% Deferred % Secured Yes No Total 27.2% 64.1% 91.3% 0.9% 7.7% 8.7% 28.2% 71.8% 100.0% Secured LTV Distribution Bar chart

Slide 21

Lodging $503 million (4%) - Excluding PPP 78% Real Estate Secured 51% Wtd Avg LTV Average Exposure $8.9 MM Largest Exposure $40 MM 79% of Portfolio has an LTV ≤ 65% 93% of Unsecured Outstandings to Global Hotel and Timeshare Brands 5.3% Unsecured and Deferred 95.1% Secured or Paying Interest Real Estate Secured Secured 78% Unsecured 22% Deferred % Secured Yes No Total 47.4% 30.3% 77.8% 5.3% 16.9% 22.2% 52.8% 47.2% 100.0% Secured LTV Distribution Bar chart

Slide 22

Restaurant/Entertainment $154 million (1%) - Excluding PPP 38% Real Estate Secured 64% Wtd Avg LTV Average Exposure $1.6 MM Largest Exposure $25.7 MM 47% of Portfolio has an LTV ≤ 65% $32.9 MM Unsecured and Deferred Average Exposure $0.5 MM 98.8% Secured or Paying Interest Real Estate Secured Secured 38% Unsecured 62% Deferred % Secured Yes No Total 9.6% 28.4% 38.0% 21.3% 40.6% 62.0% 30.9% 69.1% 100.0% Secured LTV Distribution Bar Chart

Slide 23

Financial Overview

Slide 24

Stable Net Interest Income $ in millions Note: Q2 2020 includes $2.9MM interest recovery Net Interest Income Steady Despite Sharply Lower Interest Rates and Margin Pressure Line Chart

Slide 25

Long History of Deposit Growth History of Deposit Growth by Segment $ in millions CAGR: 6.18% Line Chart

Slide 26

Deposit Rate Trends Well-Managed Deposit Rates and Funding Costs Remain Low $ in millions Line Chart

Slide 27

Ample Liquidity to Fund Continued Growth Loan to Deposit Ratio Compared with Peers Strong Liquidity Note: S&P Regional Bank Index excluding banks greater than $50 B Line Chart

Slide 28

Investment Portfolio & Duration $ in millions Investment Securities Portfolio Consists of High-Quality Securities Highly liquid and pledgeable Secure and reliable cash flows Duration (yrs) AFS 3.59 HTM 3.49 Total 3.54 Premium Amortization $9.1 Moody’s Rating AAA 96% AA 1% A 3% Total Investment Portfolio Bar Chart

Slide 29

Long History of Stable Loan Growth History of Loan Growth by Segment $ in millions CAGR: 8.47% Bar Chart

Slide 30

Disciplined Expense Management $ in millions Source: UHERO, Inflation (Honolulu CPI) NIE CAGR: 0.8% Average Inflation: 1.9% Long Term Disciplined Expense Management Bar Chart

Slide 31

Reserve and Capital Build $ in millions Note: Dividend amount shown is pre-tax YTD 2020 Bar Chart

Slide 32

Growth in Risk-Based Capital, Well in Excess of Required Minimums Fortress Capital Position Improving Tier 1 Capital CET 1 Total Capital Bar Chart

Slide 33

Financial Summary $ in millions, except per share amounts 3Q 2020 2Q 2020 3Q 2019 ∆ 2Q 2020 ∆ 3Q 2019 Net Interest Income $ 124.2 $ 126.7 $ 124.9 $ (2.5) $ (0.7) Noninterest Income 41.7 51.3 46.5 (9.5) (4.8) Total Revenue 165.9 178.0 171.4 (12.1) (5.5) Noninterest Expense 89.9 88.9 100.3 1.1 (10.4) Operating Income 76.0 89.1 71.1 (13.1) 4.9 Credit Provision 28.6 40.4 4.3 (11.8) 24.4 Income Taxes 9.5 9.8 14.8 (0.2) (5.2) Net Income $ 37.8 $ 38.9 $ 52.1 $ (1.1) $ (14.2)       Diluted EPS $ 0.95 $ 0.98 $ 1.29 $ (0.03) $ (0.34) End of Period Balances Investment Portfolio 6,389 6,003 5,541 6.4% 15.3% Loans & Leases 11,794 11,805 10,881 -0.1% 8.4% Total Deposits 17,739 17,423 15,341 1.8% 15.6% Shareholders’ Equity 1,362 1,352 1,291 0.7% 5.4% Note: Numbers may not add up due to rounding

Slide 34

Performance Metrics 3Q 2020 2Q 2020 3Q 2019 ∆ 2Q 2020 ∆ 3Q 2019 Return on Assets 0.76% 0.82% 1.17% -0.06% -0.41% Return on Equity 11.01% 11.58% 16.02% -0.57% -5.01% Net Interest Margin 2.67% 2.83% 3.01% -0.16% -0.34% Efficiency Ratio 54.2% 50.0% 58.5% 4.3% -4.3% Note: Numbers may not add up due to rounding

Slide 35

Bank of Hawaii Corporation Third Quarter 2020 Financial Results October 26, 2020

Slide 36

APPENDIX

Slide 37

Residential Mortgage Current LTV Residential Mortgage – Current LTV Bar Chart

Slide 38

Residential Mortgage Monitoring FICO Residential Mortgage – Monitoring FICO Bar Chart

Slide 39

Home Equity Current CLTV Home Equity – Current CLTV Bar Chart

Slide 40

Home Equity Monitoring FICO Home Equity – Monitoring FICO Bar Chart

Slide 41

Automobile DTI Automobile – DTI Bar Chart

Slide 42

Automobile Monitoring FICO Automobile – Monitoring FICO Bar Chart

Slide 43

Other Consumer Delinquency Status Other Consumer - Delinquency Status Bar Chart

Slide 44

Other Consumer Monitoring FICO Other Consumer - Monitoring FICO Bar Chart

Slide 45

Commercial & Industrial Leveraged vs Other Commercial & Industrial - Leveraged Leveraged 3% Other 97%

Slide 46

Commercial Mortgage Current LTV Commercial Mortgage - Current LTV Bar Chart

Slide 47

Commercial Mortgage Detail Current LTV CM Industrial - Current LTV CM Multi Family - Current LTV CM Retail - Current LTV CM Lodging - Current LTV Bar Charts

Slide 48

Construction Current LTV Construction - Current LTV Bar Chart

Slide 49

Lease Financing Leveraged vs Non-Leveraged Lease Financing - Leveraged vs Non-Leveraged Leveraged 22% Non-Leveraged 78%

Slide 50

As of September 30, 2020 Solid Base of Core Customers and Core Deposits 90% Core Consumer and Commercial Customers 90% Core Checking and Savings Deposits Strong Mix of Deposits Public Funds 10% Commercial 40% Consumer 50% Time 10% Savings 38% Checking 52%

Slide 51

Disciplined Capital Management $ in millions Bar Chart

Slide 52

Note: Historical dividends adjusted for stock splits. YTD 2020 dividend annualized. Financial Crisis Recession Recession Long and Unbroken History of Dividends Unbroken History of Dividends Line Chart

Slide 53

History of Deposit Growth by Product $ in millions Bar Chart

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