Equibles

8-K

BANK OF HAWAII CORP (BOH)

8-K 2023-01-23 For: 2023-01-23
View Original
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 January 23, 2023
(Date of earliest event reported)

BANK OF HAWAII CORPORATION

(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)

Not Applicable

(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(s) Name of each exchange on which registered
Common Stock, par value $0.01 per share BOH New York Stock Exchange
Depository Shares, Each Representing 1/40^th^ Interest in a Share of 4.375% Fixed Rate Non-Cumulative Preferred Stock, Series A BOH.PRA 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:

☐ 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 January 23, 2023, Bank of Hawaii Corporation announced its results of operations for the quarter ended December 31, 2022.  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 January 23, 2023 Press Release: Bank of Hawaii Corporation Fourth Quarter 2022 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 Fourth Quarter 2022 Financial Report
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: January 23, 2023 Bank of Hawaii Corporation
By: /s/ Patrick M. McGuirk
Patrick M. McGuirk
Senior Executive Vice President and Corporate Secretary

boh-ex991_6.htm

Exhibit 99.1

Bank of Hawai‘i Corporation Fourth Quarter 2022 Financial Results

• 2022 Diluted Earnings Per Common Share $5.48
• 2022 Net Income $225.8 Million
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• Diluted Earnings Per Common Share $1.50 for the Fourth Quarter of 2022
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• Net Income $61.3 Million for the Fourth Quarter of 2022
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• Board of Directors Declares Dividend of $0.70 Per Common Share
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FOR IMMEDIATE RELEASE

HONOLULU, HI (January 23, 2023) -- Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $5.48 for the full year of 2022, compared with diluted earnings per common share of $6.25 for the full year of 2021.  Net income for the year was $225.8 million, down 10.9% from the previous year.  Return on average assets for the full year of 2022 was 0.98%, compared to 1.14% in 2021.  Return on average common equity for the full year of 2022 was 17.83% compared to 17.92% in 2021.

Diluted earnings per common share for the fourth quarter of 2022 was $1.50, compared with diluted earnings per common share of $1.28 in the previous quarter and $1.55 in the same quarter last year.  Net income for the fourth quarter of 2022 was $61.3 million, up 16.1% from the third quarter of 2022 and down 4.0% from the fourth quarter of 2021. The increase from the third quarter of 2022 was primarily due to a one-time charge in the third quarter related to our agreement to sell assets that terminated certain leveraged leases.

“Bank of Hawai‘i ended 2022 with strong financial performance," said Peter Ho, Chairman, President, and CEO.  “As we look forward into 2023, we are well positioned for a challenging environment, thanks to our leading market position, superior credit quality, disciplined expense management, and strong liquidity and capital.”

Financial Highlights

• The return on average assets for the fourth quarter of 2022 was 1.05% compared with 0.91% in the previous quarter and 1.12% in the same quarter of 2021.
• The return on average common equity for the fourth quarter of 2022 was 21.28% compared with 16.98% in the previous quarter and 17.40% in the same quarter of 2021.
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Bank of Hawaii Corporation Fourth Quarter 2022 Financial Results Page 2
• Net interest income for the fourth quarter of 2022 was $140.7 million, a decrease of 0.6% from the third quarter of 2022 and an increase of 11.4% from the fourth quarter of 2021.  Net interest margin was 2.60% in the fourth quarter of 2022, unchanged from the previous quarter and an increase of 26 basis points from the same quarter of 2021.
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o The increase in net interest income and margin in the fourth quarter of 2022 compared to the prior year was due to the higher rate environment and strong loan growth over the year.
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• There was a $0.2 million provision for credit losses for the fourth quarter of 2022 compared with no provision in the previous quarter and a net benefit of $9.7 million in the same quarter of 2021.
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• Noninterest income was $41.2 million in the fourth quarter of 2022, an increase of 34.3% from the previous quarter and a decrease of 3.3% from the same quarter of 2021.
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o 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 leveraged leases related to 31 locomotives.  In addition, noninterest income in the third quarter also included a negative adjustment of $0.9 million related to a change in the Visa Class B conversion ratio.
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• Noninterest expense was $102.7 million in the fourth quarter of 2022, a decrease of 2.9% from the previous quarter and an increase of 1.0% from the same quarter of 2021.
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o Noninterest expense in the third quarter of 2022 included $1.8 million in separation expenses.
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• The effective tax rate for the fourth quarter of 2022 was 22.4% compared with 20.7% in the previous quarter and 17.1% during the same quarter of 2021.
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o The lower effective tax rate in the prior quarter was primarily due to tax benefits related to the aforementioned agreement to sell assets that terminated certain leveraged leases.
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o The lower effective tax rate in the fourth quarter of 2021 included a $3.6 million benefit due to larger than expected tax credits from 2020 and a reduction in the valuation allowance related to low-income housing partnerships.
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Asset Quality

The Company’s overall asset quality remained strong during the fourth quarter of 2022.

• Total non-performing assets were $12.6 million at December 31, 2022, down $1.2 million from September 30, 2022 and down $6.3 million from December 31, 2021.  Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.09% at the end of the quarter, a decrease of 1 basis point from the end of the prior quarter and a decrease of 6 basis points from the same quarter of 2021.
• Net loan and lease charge-offs during the fourth quarter of 2022 were $1.9 million or 0.05% annualized of total average loans and leases outstanding.
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o Net loan and lease charge-offs for the fourth quarter of 2022 were comprised of charge-offs of $3.2 million partially offset by recoveries of $1.4 million.
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o 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.
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o Compared to the same quarter of 2021, net loan and lease charge-offs increased by $1.2 million or 3 basis points annualized on total average loans and leases outstanding.
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Bank of Hawaii Corporation Fourth Quarter 2022 Financial Results Page 3
• The allowance for credit losses on loans and leases was $144.4 million at December 31, 2022, a decrease of $2.0 million from September 30, 2022 and a decrease of $13.4 million from December 31, 2021.  The ratio of the allowance for credit losses to total loans and leases outstanding was 1.06% at the end of the quarter, down 4 basis points from the end of the prior quarter and down 23 basis points from the end of the same quarter of 2021.
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Balance Sheet

• Total assets were $23.6 billion at December 31, 2022, an increase of 2.0% from September 30, 2022 and an increase of 3.6% from December 31, 2021.
• The investment securities portfolio was $8.3 billion at December 31, 2022, an increase of 4.7% from September 30, 2022 and a decrease of 7.9% from December 31, 2021.
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o The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.
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• Total loans and leases were $13.6 billion at December 31, 2022, an increase of 2.4% from September 30, 2022 and an increase of 11.3% from December 31, 2021.
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o Total loans and leases excluding PPP loans were $13.6 billion at December 31, 2022, an increase of 2.5% from September 30, 2022 and an increase of 12.3% from December 31, 2021.
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• Total deposits were $20.6 billion at December 31, 2022, a decrease of 1.3% from September 30, 2022 and an increase of 1.3% from December 31, 2021.
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Capital and Dividends

• The Tier 1 Capital Ratio was 12.15% at December 31, 2022 compared with 12.72% at September 30, 2022 and 13.56% at December 31, 2021.
• The Tier 1 Leverage Ratio was 7.37% at December 31, 2022 compared with 7.28% at September 30, 2022 and 7.32% at December 31, 2021.
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• The Company repurchased 192.3 thousand shares of common stock at a total cost of $15.0 million under its share repurchase program in the fourth quarter of 2022 at an average cost of $77.77 per share repurchased.
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o The Company’s Board of Directors increased the authorization under the share repurchase program by an additional $100.0 million.  Total remaining buyback authority under the share repurchase program was $135.9 million at January 20, 2023.
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• 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 March 14, 2023 to shareholders of record at the close of business on February 28, 2023.
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Bank of Hawaii Corporation Fourth Quarter 2022 Financial Results Page 4
• On January 4, 2023, 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 February 1, 2023 to shareholders of record of the preferred stock at the close of business on January 17, 2023.
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Conference Call Information

The Company will review its fourth quarter financial results today at 8:00 a.m. Hawaii Time (1:00 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 below: https://register.vevent.com/register/BIdfc785c2e350424681d5c04507f9b94f.
• A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawaii Time on Monday, January 23, 2023. The replay will be accessible via the same link.  In addition, the replay will be available on the Company's website, www.boh.com.
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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, 2021 and its Form 10-Q for the fiscal quarters ended March 31, 2022, June 30, 2022 and September 30, 2022, 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 Hawaii 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 web site, www.boh.com. Bank of Hawai‘i Corporation is a trade name of Bank of Hawaii Corporation.

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Bank of Hawai‘i Corporation and Subsidiaries
Financial Highlights Table 1
Three Months Ended Year Ended
December 31, September 30, December 31, December 31,
(dollars in thousands, except per share amounts) 2022 2022 2021 2022 2021
For the Period:
Operating Results
Net Interest Income $ 140,738 $ 141,655 $ 126,388 $ 540,558 $ 497,290
Provision for Credit Losses 200 - (9,700 ) (7,800 ) (50,500 )
Total Noninterest Income 41,172 30,660 42,574 157,541 171,353
Total Noninterest Expense 102,703 105,749 101,678 415,265 393,589
Pre-Provision Net Revenue 79,207 66,566 67,284 282,834 275,054
Net Income 61,307 52,801 63,837 225,804 253,372
Net Income Available to Common Shareholders 59,338 50,832 61,868 217,928 250,397
Basic Earnings Per Common Share 1.51 1.28 1.56 5.50 6.29
Diluted Earnings Per Common Share 1.50 1.28 1.55 5.48 6.25
Dividends Declared Per Common Share 0.70 0.70 0.70 2.80 2.74
Performance Ratios
Return on Average Assets 1.05 % 0.91 % 1.12 % 0.98 % 1.14 %
Return on Average Shareholders' Equity 18.91 15.31 15.92 16.10 16.94
Return on Average Common Equity 21.28 16.98 17.40 17.83 17.92
Efficiency Ratio ^1^ 56.46 61.37 60.18 59.49 58.86
Net Interest Margin ^2^ 2.60 2.60 2.34 2.50 2.36
Dividend Payout Ratio ^3^ 46.36 54.69 44.87 50.91 43.56
Average Shareholders' Equity to Average Assets 5.56 5.91 7.02 6.10 6.73
Average Balances
Average Loans and Leases $ 13,452,791 $ 13,126,717 $ 12,086,705 $ 12,896,510 $ 12,023,669
Average Assets 23,147,398 23,135,820 22,666,280 23,006,671 22,227,156
Average Deposits 20,341,327 20,863,681 20,222,470 20,550,739 19,771,147
Average Shareholders' Equity 1,286,291 1,367,946 1,590,600 1,402,533 1,495,586
Per Share of Common Stock
Book Value $ 28.54 $ 27.55 $ 35.57 $ 28.54 $ 35.57
Tangible Book Value 27.75 26.76 34.78 27.75 34.78
Market Value
Closing 77.56 76.12 83.76 77.56 83.76
High 82.87 85.45 88.96 92.38 99.10
Low 70.15 70.89 78.73 70.15 75.65
December 31, September 30, December 31,
2022 2022 2021
As of Period End:
Balance Sheet Totals
Loans and Leases $ 13,646,420 $ 13,321,606 $ 12,259,076
Total Assets 23,606,877 23,134,040 22,784,941
Total Deposits 20,615,696 20,888,773 20,360,108
Other Debt 410,294 10,319 10,391
Total Shareholders' Equity 1,316,995 1,282,384 1,611,611
Asset Quality
Non-Performing Assets $ 12,647 $ 13,868 $ 18,966
Allowance for Credit Losses - Loans and Leases 144,439 146,436 157,821
Allowance to Loans and Leases Outstanding ^4^ 1.06 % 1.10 % 1.29 %
Capital Ratios ^5^
Common Equity Tier 1 Capital Ratio 10.92 % 11.42 % 12.12 %
Tier 1 Capital Ratio 12.15 12.72 13.56
Total Capital Ratio 13.17 13.82 14.81
Tier 1 Leverage Ratio 7.37 7.28 7.32
Total Shareholders' Equity to Total Assets 5.58 5.54 7.07
Tangible Common Equity to Tangible Assets ^6^ 4.69 4.64 6.15
Tangible Common Equity to Risk-Weighted Assets ^6^ 7.76 7.97 11.44
Non-Financial Data
Full-Time Equivalent Employees 2,076 2,115 2,056
Branches 51 51 54
ATMs 320 316 307
^1^ Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
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^2^ Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
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^3^ Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.
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^4^ The numerator comprises the Allowance for Credit Losses - Loans and Leases.
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^5^ Regulatory capital ratios as of December 31, 2022 are preliminary.
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^6^ Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures.
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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
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Reconciliation of Non-GAAP Financial Measures Table 2
December 31, September 30, December 31,
(dollars in thousands) 2022 2022 2021
Total Shareholders' Equity $ 1,316,995 $ 1,282,384 $ 1,611,611
Less: Preferred Stock 180,000 180,000 180,000
Goodwill 31,517 31,517 31,517
Tangible Common Equity $ 1,105,478 $ 1,070,867 $ 1,400,094
Total Assets 23,606,877 23,134,040 22,784,941
Less: Goodwill 31,517 31,517 31,517
Tangible Assets $ 23,575,360 $ 23,102,523 $ 22,753,424
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements ^1^ $ 14,238,798 $ 13,428,188 $ 12,236,805
Total Shareholders' Equity to Total Assets 5.58 % 5.54 % 7.07 %
Tangible Common Equity to Tangible Assets (Non-GAAP) 4.69 % 4.64 % 6.15 %
Tier 1 Capital Ratio ^1^ 12.15 % 12.72 % 13.56 %
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) ^1^ 7.76 % 7.97 % 11.44 %
^1^ Regulatory capital ratios as of December 31, 2022 are preliminary.
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Bank of Hawai‘i Corporation and Subsidiaries
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Consolidated Statements of Income Table 3
Three Months Ended Year Ended
December 31, September 30, December 31, December 31,
(dollars in thousands, except per share amounts) 2022 2022 2021 2022 2021
Interest Income
Interest and Fees on Loans and Leases $ 128,683 $ 115,013 $ 97,853 $ 439,798 $ 398,616
Income on Investment Securities
Available-for-Sale 18,476 16,995 15,850 70,555 64,550
Held-to-Maturity 23,708 20,243 18,325 81,490 61,955
Deposits 13 10 1 32 10
Funds Sold 1,093 2,335 104 4,274 883
Other 340 322 176 1,217 702
Total Interest Income 172,313 154,918 132,309 597,366 526,716
Interest Expense
Deposits 23,494 10,296 2,898 39,678 15,216
Securities Sold Under Agreements to Repurchase 4,289 2,745 2,834 12,600 13,260
Funds Purchased 318 40 6 417 7
Short-Term Borrowings 1,978 - - 2,070 -
Other Debt 1,496 182 183 2,043 943
Total Interest Expense 31,575 13,263 5,921 56,808 29,426
Net Interest Income 140,738 141,655 126,388 540,558 497,290
Provision for Credit Losses 200 - (9,700 ) (7,800 ) (50,500 )
Net Interest Income After Provision for Credit Losses 140,538 141,655 136,088 548,358 547,790
Noninterest Income
Trust and Asset Management 10,652 10,418 11,693 43,803 46,068
Mortgage Banking 991 1,002 2,908 5,980 14,964
Service Charges on Deposit Accounts 7,513 7,526 6,861 29,620 25,564
Fees, Exchange, and Other Service Charges 13,906 13,863 14,439 54,914 55,457
Investment Securities Losses, Net (1,124 ) (2,147 ) (1,258 ) (6,111 ) (1,297 )
Annuity and Insurance 1,087 1,034 876 3,782 3,224
Bank-Owned Life Insurance 2,475 2,486 1,907 9,968 7,784
Other 5,672 (3,522 ) 5,148 15,585 19,589
Total Noninterest Income 41,172 30,660 42,574 157,541 171,353
Noninterest Expense
Salaries and Benefits 57,639 59,938 59,434 235,270 228,293
Net Occupancy 9,499 10,186 9,028 39,441 26,244
Net Equipment 9,942 9,736 9,105 38,374 35,703
Data Processing 4,579 4,616 4,696 18,362 20,297
Professional Fees 3,958 3,799 3,427 14,557 12,895
FDIC Insurance 1,774 1,680 1,619 6,546 6,536
Other 15,312 15,794 14,369 62,715 63,621
Total Noninterest Expense 102,703 105,749 101,678 415,265 393,589
Income Before Provision for Income Taxes 79,007 66,566 76,984 290,634 325,554
Provision for Income Taxes 17,700 13,765 13,147 64,830 72,182
Net Income $ 61,307 $ 52,801 $ 63,837 $ 225,804 $ 253,372
Preferred Stock Dividends 1,969 1,969 1,969 7,877 2,975
Net Income Available to Common Shareholders $ 59,338 $ 50,832 $ 61,868 $ 217,927 $ 250,397
Basic Earnings Per Common Share $ 1.51 $ 1.28 $ 1.56 $ 5.50 $ 6.29
Diluted Earnings Per Common Share $ 1.50 $ 1.28 $ 1.55 $ 5.48 $ 6.25
Dividends Declared Per Common Share $ 0.70 $ 0.70 $ 0.70 $ 2.80 $ 2.74
Basic Weighted Average Common Shares 39,395,338 39,567,047 39,741,063 39,601,089 39,837,798
Diluted Weighted Average Common Shares 39,618,896 39,758,209 39,955,525 39,788,002 40,053,664
Bank of Hawai‘i Corporation and Subsidiaries
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Consolidated Statements of Comprehensive Income (Loss) Table 4
Three Months Ended Year Ended
December 31, September 30, December 31, December 31,
(dollars in thousands) 2022 2022 2021 2022 2021
Net Income $ 61,307 $ 52,801 $ 63,837 $ 225,804 $ 253,372
Other Comprehensive Loss, Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities 5,677 (79,600 ) (26,244 ) (376,694 ) (83,958 )
Defined Benefit Plans 7,359 354 8,430 8,418 9,754
Other Comprehensive Income (Loss) 13,036 (79,246 ) (17,814 ) (368,276 ) (74,204 )
Comprehensive Income (Loss) $ 74,343 $ (26,445 ) $ 46,023 $ (142,472 ) $ 179,168
Bank of Hawai‘i Corporation and Subsidiaries
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Consolidated Statements of Condition Table 5
September 30, December 31,
(dollars in thousands) 2022 2021
Assets
Interest-Bearing Deposits in Other Banks 3,724 $ 5,429 $ 2,571
Funds Sold 81,364 402,714 361,536
Investment Securities
Available-for-Sale 2,844,823 2,424,608 4,276,056
Held-to-Maturity (Fair Value of 4,615,393; 4,668,074; and 4,646,619) 5,414,139 5,461,160 4,694,780
Loans Held for Sale 1,035 418 26,746
Loans and Leases 13,646,420 13,321,606 12,259,076
Allowance for Credit Losses (144,439 ) (146,436 ) (157,821 )
Net Loans and Leases 13,501,981 13,175,170 12,101,255
Total Earning Assets 21,847,066 21,469,499 21,462,944
Cash and Due from Banks 316,679 247,506 196,327
Premises and Equipment, Net 206,777 208,251 199,393
Operating Lease Right-of-Use Assets 92,307 94,613 95,621
Accrued Interest Receivable 61,002 50,143 45,242
Foreclosed Real Estate 1,040 1,040 2,332
Mortgage Servicing Rights 22,619 23,104 22,251
Goodwill 31,517 31,517 31,517
Bank-Owned Life Insurance 453,882 451,407 344,587
Other Assets 573,988 556,960 384,727
Total Assets 23,606,877 $ 23,134,040 $ 22,784,941
Liabilities
Deposits
Noninterest-Bearing Demand 6,714,982 $ 7,300,157 $ 7,275,287
Interest-Bearing Demand 4,232,567 4,399,625 4,628,567
Savings 7,962,410 7,954,006 7,456,165
Time 1,705,737 1,234,985 1,000,089
Total Deposits 20,615,696 20,888,773 20,360,108
Securities Sold Under Agreements to Repurchase 725,490 425,490 450,490
Other Debt 410,294 10,319 10,391
Operating Lease Liabilities 100,526 102,705 103,210
Retirement Benefits Payable 26,991 37,053 38,494
Accrued Interest Payable 9,698 3,405 2,499
Taxes Payable 7,104 13,527 11,901
Other Liabilities 394,083 370,384 196,237
Total Liabilities 22,289,882 21,851,656 21,173,330
Shareholders' Equity
Preferred Stock (.01 par value; authorized 180,000 shares;
issued / outstanding: December 31, 2022; September 30, 2022; and December 31, 2021 - 180,000) 180,000 180,000 180,000
Common Stock (.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2022 - 58,733,625 / 39,835,750;
September 30, 2022 - 58,728,796 / 40,011,473; and December 31, 2021 - 58,554,669 / 40,253,193) 582 582 581
Capital Surplus 620,578 615,985 602,508
Accumulated Other Comprehensive Loss (434,658 ) (447,694 ) (66,382 )
Retained Earnings 2,055,912 2,024,641 1,950,375
Treasury Stock, at Cost (Shares: December 31, 2022 - 18,897,875; September 30, 2022 - 18,717,323;
and December 31, 2021 - 18,301,476) (1,105,419 ) (1,091,130 ) (1,055,471 )
Total Shareholders' Equity 1,316,995 1,282,384 1,611,611
Total Liabilities and Shareholders' Equity 23,606,877 $ 23,134,040 $ 22,784,941

All values are in US Dollars.

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity Table 6
Accumulated
Other
Common Comprehensive
Preferred Shares Common Capital Income Retained Treasury
(dollars in thousands) Stock Outstanding Stock Surplus (Loss) Earnings Stock Total
Balance as of December 31, 2020 - $ - 40,119,312 $ 580 $ 591,360 $ 7,822 $ 1,811,979 $ (1,037,234 ) $ 1,374,507
Net Income - - - - - - 253,372 - 253,372
Other Comprehensive Loss - - - - - (74,204 ) - - (74,204 )
Share-Based Compensation - - - - 13,267 - - - 13,267
Preferred Stock Issued, Net 180,000 180,000 - - (4,513 ) - - - 175,487
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits - - 507,121 1 2,394 - (1,368 ) 13,021 14,048
Common Stock Repurchased - - (373,240 ) - - - - (31,258 ) (31,258 )
Cash Dividends Declared Common Stock (2.74 per share) - - - - - - (110,633 ) - (110,633 )
Cash Dividends Declared Preferred Stock - - - - - - (2,975 ) - (2,975 )
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 - - - - - - 225,804 - 225,804
Other Comprehensive Loss - - - - - (368,276 ) - - (368,276 )
Share-Based Compensation - - - - 16,066 - - - 16,066
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits - - 272,007 1 2,004 - 167 5,115 7,287
Common Stock Repurchased - - (689,450 ) - - - - (55,063 ) (55,063 )
Cash Dividends Declared Common Stock (2.80 per share) - - - - - - (112,557 ) - (112,557 )
Cash Dividends Declared Preferred Stock - - - - - - (7,877 ) - (7,877 )
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

All values are in US Dollars.

Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1 Table 7a
Three Months Ended Three Months Ended
September 30, 2022 December 31, 2021
Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
(dollars in millions) Expense ^2^ Rate Balance Expense ^2^ Rate Balance Expense ^2^ Rate
Earning Assets
Interest-Bearing Deposits in Other Banks 2.2 $ - 2.32 % $ 2.9 $ - 1.32 % $ 2.2 $ - 0.05 %
Funds Sold 118.1 1.2 3.62 411.8 2.3 2.22 273.2 0.1 0.15
Investment Securities
Available-for-Sale
Taxable 2,593.5 18.4 2.83 3,481.9 17.0 1.95 4,308.6 15.8 1.47
Non-Taxable 7.5 0.1 4.14 2.5 - 1.56 5.8 0.1 3.67
Held-to-Maturity
Taxable 5,401.9 23.5 1.74 4,645.7 20.1 1.73 4,757.4 18.1 1.52
Non-Taxable 35.4 0.2 2.10 35.6 0.2 2.10 58.0 0.3 2.31
Total Investment Securities 8,038.3 42.2 2.10 8,165.7 37.3 1.82 9,129.8 34.3 1.50
Loans Held for Sale 3.3 - 5.65 4.3 0.1 4.46 20.8 0.1 2.85
Loans and Leases 3
Commercial and Industrial 1,379.9 14.8 4.25 1,353.8 12.5 3.66 1,297.0 8.9 2.72
Paycheck Protection Program 21.3 0.1 2.30 28.0 0.2 3.02 181.0 5.7 12.55
Commercial Mortgage 3,627.4 40.6 4.44 3,530.9 33.3 3.74 3,075.1 22.2 2.86
Construction 246.9 3.3 5.29 233.0 2.8 4.81 246.8 2.2 3.50
Commercial Lease Financing 72.0 0.3 1.49 89.1 0.4 1.58 107.4 0.3 1.12
Residential Mortgage 4,617.9 38.9 3.37 4,526.6 37.4 3.30 4,293.6 33.9 3.16
Home Equity 2,207.7 17.9 3.23 2,144.8 16.4 3.04 1,757.8 12.8 2.88
Automobile 851.1 7.0 3.29 795.5 6.4 3.19 730.2 6.1 3.34
Other 4 428.6 6.1 5.64 425.0 5.9 5.48 397.8 5.8 5.79
Total Loans and Leases 13,452.8 129.0 3.81 13,126.7 115.3 3.49 12,086.7 97.9 3.22
Other 50.1 0.4 2.72 36.9 0.3 3.49 34.4 0.2 2.05
Total Earning Assets 21,664.8 172.8 3.17 21,748.3 155.3 2.84 21,547.1 132.6 2.45
Cash and Due from Banks 244.3 233.5 231.3
Other Assets 1,238.3 1,154.0 887.9
Total Assets 23,147.4 $ 23,135.8 $ 22,666.3
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand 4,131.4 3.5 0.33 $ 4,286.0 1.4 0.13 $ 4,685.7 0.7 0.06
Savings 7,869.9 13.4 0.68 7,962.0 6.6 0.33 7,443.2 1.2 0.06
Time 1,467.7 6.6 1.78 1,146.9 2.3 0.79 1,019.2 1.0 0.40
Total Interest-Bearing Deposits 13,469.0 23.5 0.69 13,394.9 10.3 0.30 13,148.1 2.9 0.09
Short-Term Borrowings 234.9 2.3 3.82 4.9 0.1 3.17 18.5 - 0.13
Securities Sold Under Agreements to Repurchase 594.5 4.3 2.82 425.5 2.7 2.52 450.5 2.8 2.46
Other Debt 137.5 1.5 4.32 10.3 0.2 7.05 10.4 0.2 7.05
Total Interest-Bearing Liabilities 14,435.9 31.6 0.87 13,835.6 13.3 0.38 13,627.5 5.9 0.17
Net Interest Income $ 141.2 $ 142.0 $ 126.7
Interest Rate Spread 2.30 % 2.46 % 2.28 %
Net Interest Margin 2.60 % 2.60 % 2.34 %
Noninterest-Bearing Demand Deposits 6,872.3 7,468.8 7,074.4
Other Liabilities 552.9 463.5 373.8
Shareholders' Equity 1,286.3 1,367.9 1,590.6
Total Liabilities and Shareholders' Equity 23,147.4 $ 23,135.8 $ 22,666.3
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 433,000, 343,000, and 280,000
for the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, 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.

All values are in US Dollars.

Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1 Table 7b
Year Ended
December 31, 2021
Income/ Yield/ Average Income/ Yield/
(dollars in millions) Expense ^2^ Rate Balance Expense ^2^ Rate
Earning Assets
Interest-Bearing Deposits in Other Banks 3.0 $ - 1.05 % $ 2.7 $ - 0.36 %
Funds Sold 260.5 4.3 1.64 692.4 0.9 0.13
Investment Securities
Available-for-Sale
Taxable 3,644.2 70.5 1.93 4,266.9 64.2 1.50
Non-Taxable 4.0 0.1 2.92 10.1 0.4 4.21
Held-to-Maturity
Taxable 4,750.0 80.9 1.70 3,988.1 61.0 1.53
Non-Taxable 35.6 0.7 2.10 50.7 1.2 2.41
Total Investment Securities 8,433.8 152.2 1.80 8,315.8 126.8 1.53
Loans Held for Sale 6.9 0.3 3.70 24.3 0.7 2.82
Loans and Leases 3
Commercial and Industrial 1,349.3 46.2 3.42 1,285.1 37.1 2.88
Paycheck Protection Program 44.0 2.7 6.07 453.9 25.7 5.67
Commercial Mortgage 3,420.1 121.9 3.56 2,940.0 86.7 2.95
Construction 232.6 10.6 4.56 271.6 9.5 3.50
Commercial Lease Financing 88.5 1.3 1.49 107.2 1.5 1.42
Residential Mortgage 4,484.2 147.4 3.29 4,232.4 140.1 3.31
Home Equity 2,072.2 62.1 3.00 1,637.1 49.6 3.03
Automobile 786.1 25.4 3.23 717.0 24.6 3.43
Other 4 419.5 23.0 5.49 379.4 23.9 6.30
Total Loans and Leases 12,896.5 440.6 3.42 12,023.7 398.7 3.32
Other 40.5 1.2 3.01 32.9 0.7 2.13
Total Earning Assets 21,641.2 598.6 2.77 21,091.8 527.8 2.50
Cash and Due from Banks 237.4 252.5
Other Assets 1,128.1 882.9
Total Assets 23,006.7 $ 22,227.2
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand 4,377.1 6.1 0.14 $ 4,509.8 2.7 0.06
Savings 7,767.7 22.9 0.30 7,421.9 6.2 0.08
Time 1,135.5 10.7 0.94 1,331.8 6.3 0.47
Total Interest-Bearing Deposits 13,280.3 39.7 0.30 13,263.5 15.2 0.11
Short-Term Borrowings 77.1 2.5 3.23 5.2 - 0.13
Securities Sold Under Agreements to Repurchase 479.8 12.6 2.63 541.9 13.3 2.45
Other Debt 42.4 2.0 4.82 27.7 0.9 3.41
Total Interest-Bearing Liabilities 13,879.6 56.8 0.41 13,838.3 29.4 0.21
Net Interest Income $ 541.8 $ 498.4
Interest Rate Spread 2.36 % 2.29 %
Net Interest Margin 2.50 % 2.36 %
Noninterest-Bearing Demand Deposits 7,270.4 6,507.6
Other Liabilities 454.2 385.7
Shareholders' Equity 1,402.5 1,495.6
Total Liabilities and Shareholders' Equity 23,006.7 $ 22,227.2
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 1,251,000 and 1,116,000
for the year ended December 31, 2022 and December 31, 2021, 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.

All values are in US Dollars.

.

Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8a
Three Months Ended December 31, 2022
Compared to September 30, 2022
(dollars in millions) Volume ^1^ Rate ^1^ Total
Change in Interest Income:
Funds Sold $ (2.1 ) $ 1.0 $ (1.1 )
Investment Securities
Available-for-Sale
Taxable (5.1 ) 6.5 1.4
Non-Taxable 0.1 - 0.1
Held-to-Maturity
Taxable 3.2 0.2 3.4
Total Investment Securities (1.8 ) 6.7 4.9
Loans Held for Sale (0.1 ) - (0.1 )
Loans and Leases
Commercial and Industrial 0.3 2.0 2.3
Paycheck Protection Program (0.1 ) - (0.1 )
Commercial Mortgage 0.9 6.4 7.3
Construction 0.2 0.3 0.5
Commercial Lease Financing (0.1 ) - (0.1 )
Residential Mortgage 0.8 0.7 1.5
Home Equity 0.5 1.0 1.5
Automobile 0.4 0.2 0.6
Other ^2^ - 0.2 0.2
Total Loans and Leases 2.9 10.8 13.7
Other 0.4 (0.3 ) 0.1
Total Change in Interest Income (0.7 ) 18.2 17.5
Change in Interest Expense:
Interest-Bearing Deposits
Demand - 2.1 2.1
Savings (0.1 ) 6.9 6.8
Time 0.8 3.5 4.3
Total Interest-Bearing Deposits 0.7 12.5 13.2
Short-Term Borrowings 2.2 - 2.2
Securities Sold Under Agreements to Repurchase 1.2 0.4 1.6
Other Debt 1.4 (0.1 ) 1.3
Total Change in Interest Expense 5.5 12.8 18.3
Change in Net Interest Income $ (6.2 ) $ 5.4 $ (0.8 )
^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 December 31, 2022
Compared to December 31, 2021
(dollars in millions) Volume ^1^ Rate ^1^ Total
Change in Interest Income:
Funds Sold $ (0.1 ) $ 1.2 $ 1.1
Investment Securities
Available-for-Sale
Taxable (8.1 ) 10.7 2.6
Held-to-Maturity
Taxable 2.6 2.8 5.4
Non-Taxable (0.1 ) - (0.1 )
Total Investment Securities (5.6 ) 13.5 7.9
Loans Held for Sale (0.2 ) 0.1 (0.1 )
Loans and Leases
Commercial and Industrial 0.6 5.3 5.9
Paycheck Protection Program (2.9 ) (2.7 ) (5.6 )
Commercial Mortgage 4.5 13.9 18.4
Construction - 1.1 1.1
Commercial Lease Financing (0.1 ) 0.1 -
Residential Mortgage 2.7 2.3 5.0
Home Equity 3.5 1.6 5.1
Automobile 1.0 (0.1 ) 0.9
Other ^2^ 0.4 (0.1 ) 0.3
Total Loans and Leases 9.7 21.4 31.1
Other 0.1 0.1 0.2
Total Change in Interest Income 3.9 36.3 40.2
Change in Interest Expense:
Interest-Bearing Deposits
Demand (0.1 ) 2.9 2.8
Savings 0.1 12.1 12.2
Time 0.6 5.0 5.6
Total Interest-Bearing Deposits 0.6 20.0 20.6
Short-Term Borrowings 0.7 1.6 2.3
Securities Sold Under Agreements to Repurchase 1.0 0.5 1.5
Other Debt 1.4 (0.1 ) 1.3
Total Change in Interest Expense 3.7 22.0 25.7
Change in Net Interest Income $ 0.2 $ 14.3 $ 14.5
^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 Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- ---
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8c
Year Ended December 31, 2022
Compared to December 31, 2021
(dollars in millions) Volume ^1^ Rate ^1^ Total
Change in Interest Income:
Funds Sold $ (0.9 ) $ 4.3 $ 3.4
Investment Securities
Available-for-Sale
Taxable (10.3 ) 16.6 6.3
Non-Taxable (0.2 ) (0.1 ) (0.3 )
Held-to-Maturity
Taxable 12.5 7.4 19.9
Non-Taxable (0.3 ) (0.2 ) (0.5 )
Total Investment Securities 1.7 23.7 25.4
Loans Held for Sale (0.6 ) 0.2 (0.4 )
Loans and Leases
Commercial and Industrial 1.9 7.2 9.1
Paycheck Protection Program (24.8 ) 1.8 (23.0 )
Commercial Mortgage 15.5 19.7 35.2
Construction (1.5 ) 2.6 1.1
Commercial Lease Financing (0.2 ) - (0.2 )
Residential Mortgage 8.3 (1.0 ) 7.3
Home Equity 13.1 (0.6 ) 12.5
Automobile 2.3 (1.5 ) 0.8
Other^2^ 2.3 (3.2 ) (0.9 )
Total Loans and Leases 16.9 25.0 41.9
Other 0.2 0.3 0.5
Total Change in Interest Income 17.3 53.5 70.8
Change in Interest Expense:
Interest-Bearing Deposits
Demand (0.1 ) 3.5 3.4
Savings 0.3 16.4 16.7
Time (1.0 ) 5.4 4.4
Total Interest-Bearing Deposits (0.8 ) 25.3 24.5
Short-Term Borrowings 0.9 1.6 2.5
Securities Sold Under Agreements to Repurchase (1.6 ) 0.9 (0.7 )
Other Debt 0.6 0.5 1.1
Total Change in Interest Expense (0.9 ) 28.3 27.4
Change in Net Interest Income $ 18.2 $ 25.2 $ 43.4
^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
--- --- --- --- --- --- --- --- --- --- --- ---
Salaries and Benefits Table 9
Three Months Ended Year Ended
December 31, September 30, December 31, December 31,
(dollars in thousands) 2022 2022 2021 2022 2021
Salaries $ 37,395 $ 37,792 $ 35,758 $ 146,840 $ 135,416
Incentive Compensation 5,356 5,885 6,699 23,425 22,462
Share-Based Compensation 3,901 3,558 3,396 15,220 12,489
Commission Expense 830 1,005 2,094 4,708 8,901
Retirement and Other Benefits 4,065 4,448 4,661 17,242 20,213
Payroll Taxes 2,591 2,826 2,585 13,395 12,404
Medical, Dental, and Life Insurance 3,528 2,605 3,981 11,958 12,831
Separation Expense (27 ) 1,819 260 2,482 3,577
Total Salaries and Benefits $ 57,639 $ 59,938 $ 59,434 $ 235,270 $ 228,293
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- ---
Loan and Lease Portfolio Balances Table 10
December 31, September 30, June 30, March 31, December 31,
(dollars in thousands) 2022 2022 2022 2022 2021
Commercial
Commercial and Industrial $ 1,389,066 $ 1,368,966 $ 1,323,830 $ 1,354,757 $ 1,361,921
Paycheck Protection Program 19,579 22,955 31,964 57,809 126,779
Commercial Mortgage 3,725,542 3,591,943 3,464,126 3,257,689 3,152,130
Construction 260,825 236,498 246,177 248,363 220,254
Lease Financing 69,491 73,989 89,535 98,107 105,108
Total Commercial 5,464,503 5,294,351 5,155,632 5,016,725 4,966,192
Consumer
Residential Mortgage 4,653,072 4,585,723 4,486,571 4,405,718 4,309,602
Home Equity 2,225,950 2,185,484 2,101,612 1,958,285 1,836,588
Automobile 870,396 820,640 775,065 742,934 736,565
Other ^1^ 432,499 435,408 432,693 420,830 410,129
Total Consumer 8,181,917 8,027,255 7,795,941 7,527,767 7,292,884
Total Loans and Leases $ 13,646,420 $ 13,321,606 $ 12,951,573 $ 12,544,492 $ 12,259,076
Deposits
December 31, September 30, June 30, March 31, December 31,
(dollars in thousands) 2022 2022 2022 2022 2021
Consumer $ 10,304,335 $ 10,507,946 $ 10,554,121 $ 10,654,192 $ 10,438,844
Commercial 8,569,670 8,841,781 8,824,609 8,818,477 8,641,932
Public and Other 1,741,691 1,539,046 1,646,951 1,243,618 1,279,332
Total Deposits $ 20,615,696 $ 20,888,773 $ 21,025,681 $ 20,716,287 $ 20,360,108
^1^  Comprised of other revolving credit, installment, and lease financing.
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 11
December 31, September 30, June 30, March 31, December 31,
(dollars in thousands) 2022 2022 2022 2022 2021
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial $ 37 $ 49 $ 85 $ 99 $ 243
Commercial Mortgage 3,309 3,396 3,462 8,065 8,205
Total Commercial 3,346 3,445 3,547 8,164 8,448
Consumer
Residential Mortgage 4,239 4,945 5,179 3,845 3,305
Home Equity 4,022 4,438 4,435 5,638 4,881
Total Consumer 8,261 9,383 9,614 9,483 8,186
Total Non-Accrual Loans and Leases 11,607 12,828 13,161 17,647 16,634
Foreclosed Real Estate 1,040 1,040 2,332 2,332 2,332
Total Non-Performing Assets $ 12,647 $ 13,868 $ 15,493 $ 19,979 $ 18,966
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial $ - $ - $ - $ 22 $ -
Total Commercial - - - 22 -
Consumer
Residential Mortgage 2,429 3,279 2,638 4,113 3,159
Home Equity 1,673 1,061 2,029 2,722 3,456
Automobile 589 467 359 504 729
Other ^1^ 683 513 508 649 426
Total Consumer 5,374 5,320 5,534 7,988 7,770
Total Accruing Loans and Leases Past Due 90 Days or More $ 5,374 $ 5,320 $ 5,534 $ 8,010 $ 7,770
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More $ 43,658 $ 44,641 $ 46,024 $ 54,136 $ 60,519
Total Loans and Leases $ 13,646,420 $ 13,321,606 $ 12,951,573 $ 12,544,492 $ 12,259,076
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases 0.09 % 0.10 % 0.10 % 0.14 % 0.14 %
Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate 0.09 % 0.10 % 0.12 % 0.16 % 0.15 %
Ratio of Non-Performing Assets to Total Assets 0.05 % 0.06 % 0.06 % 0.07 % 0.07 %
Ratio of Commercial Non-Performing Assets to Total Commercial Loans
and Leases and Commercial Foreclosed Real Estate 0.06 % 0.07 % 0.07 % 0.16 % 0.17 %
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate 0.11 % 0.13 % 0.15 % 0.16 % 0.14 %
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 % 0.14 % 0.16 % 0.22 % 0.22 %
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter $ 13,868 $ 15,493 $ 19,979 $ 18,966 $ 20,620
Additions 704 489 2,293 2,243 357
Reductions
Payments (1,605 ) (706 ) (5,511 ) (1,230 ) (972 )
Return to Accrual Status (301 ) (116 ) (1,267 ) - (1,038 )
Sales of Foreclosed Real Estate - (1,292 ) - - -
Charge-offs / Write-downs (19 ) - (1 ) - (1 )
Total Reductions (1,925 ) (2,114 ) (6,779 ) (1,230 ) (2,011 )
Balance at End of Quarter $ 12,647 $ 13,868 $ 15,493 $ 19,979 $ 18,966
^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 Year Ended
December 31, September 30, December 31, December 31,
(dollars in thousands) 2022 2022 2021 2022 2021
Balance at Beginning of Period $ 152,927 $ 154,098 $ 174,708 $ 164,297 $ 221,303
Loans and Leases Charged-Off
Commercial
Commercial and Industrial (196 ) (147 ) (217 ) (925 ) (1,117 )
Consumer
Residential Mortgage - - - (80 ) (316 )
Home Equity (10 ) - (5 ) (100 ) (417 )
Automobile (1,171 ) (794 ) (1,045 ) (4,652 ) (4,939 )
Other ^1^ (1,846 ) (1,924 ) (2,007 ) (7,585 ) (10,530 )
Total Loans and Leases Charged-Off (3,223 ) (2,865 ) (3,274 ) (13,342 ) (17,319 )
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial 87 45 132 552 506
Consumer
Residential Mortgage 63 156 858 1,193 2,467
Home Equity 202 367 390 1,500 1,666
Automobile 412 441 476 2,276 3,510
Other ^1^ 604 709 746 2,702 3,205
Total Recoveries on Loans and Leases Previously Charged-Off 1,368 1,718 2,602 8,223 11,354
Net Charged-Off - Loans and Leases (1,855 ) (1,147 ) (672 ) (5,119 ) (5,965 )
Net Charged-Off - Accrued Interest Receivable (25 ) - (39 ) (131 ) (541 )
Provision for Credit Losses:
Loans and Leases (142 ) (929 ) (9,427 ) (8,263 ) (52,466 )
Accrued Interest Receivable 25 - (214 ) (283 ) (1,745 )
Unfunded Commitments 317 905 (59 ) 746 3,711
Total Provision for Credit Losses $ 200 $ (24 ) $ (9,700 ) $ (7,800 ) $ (50,500 )
Balance at End of Period 151,247 152,927 164,297 151,247 164,297
Components
Allowance for Credit Losses - Loans and Leases $ 144,439 $ 146,436 $ 157,821 $ 144,439 $ 157,821
Allowance for Credit Losses - Accrued Interest Receivable - - 414 - 414
Reserve for Unfunded Commitments 6,808 6,491 6,062 6,808 6,062
Total Reserve for Credit Losses $ 151,247 $ 152,927 $ 164,297 $ 151,247 $ 164,297
Average Loans and Leases Outstanding $ 13,452,791 $ 13,126,717 $ 12,086,705 $ 12,896,510 $ 12,023,669
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized) 0.05 % 0.03 % 0.02 % 0.04 % 0.05 %
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding ^2^ 1.06 % 1.10 % 1.29 % 1.06 % 1.29 %
^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 December 31, 2022
Net Interest Income (Loss) $ 94,918 $ 56,878 $ (11,058 ) $ 140,738
Provision for Credit Losses 1,861 (6 ) (1,655 ) 200
Net Interest Income (Loss) After Provision for Credit Losses 93,057 56,884 (9,403 ) 140,538
Noninterest Income 31,526 8,288 1,358 41,172
Noninterest Expense (82,383 ) (17,587 ) (2,733 ) (102,703 )
Income (Loss) Before Income Taxes 42,200 47,585 (10,778 ) 79,007
Provision for Income Taxes (10,846 ) (12,005 ) 5,151 (17,700 )
Net Income (Loss) $ 31,354 $ 35,580 $ (5,627 ) $ 61,307
Total Assets as of December 31, 2022 $ 8,545,896 $ 5,522,916 $ 9,538,065 $ 23,606,877
Three Months Ended December 31, 2021 ^1^
Net Interest Income $ 71,146 $ 48,140 $ 7,102 $ 126,388
Provision for Credit Losses 676 (4 ) (10,372 ) (9,700 )
Net Interest Income After Provision for Credit Losses 70,470 48,144 17,474 136,088
Noninterest Income 32,948 8,298 1,328 42,574
Noninterest Expense (81,385 ) (17,127 ) (3,166 ) (101,678 )
Income Before Income Taxes 22,033 39,315 15,636 76,984
Provision for Income Taxes (5,609 ) (9,436 ) 1,898 (13,147 )
Net Income $ 16,424 $ 29,879 $ 17,534 $ 63,837
Total Assets as of December 31, 2021 ^1^ $ 7,701,447 $ 5,107,001 $ 9,976,493 $ 22,784,941
^1^^^Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawai‘i Corporation and Subsidiaries
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Business Segments Selected Financial Information Table 13b
Consumer Commercial Treasury Consolidated
(dollars in thousands) Banking Banking and Other Total
Year Ended December 31, 2022 ^1^
Net Interest Income $ 327,940 $ 209,272 $ 3,346 $ 540,558
Provision for Credit Losses 5,324 (205 ) (12,919 ) (7,800 )
Net Interest Income After Provision for Credit Losses 322,616 209,477 16,265 548,358
Noninterest Income 126,336 25,937 5,268 157,541
Noninterest Expense (330,561 ) (70,601 ) (14,103 ) (415,265 )
Income Before Income Taxes 118,391 164,813 7,430 290,634
Provision for Income Taxes (29,974 ) (40,659 ) 5,803 (64,830 )
Net Income $ 88,417 $ 124,154 $ 13,233 $ 225,804
Total Assets as of December 31, 2022 ^1^ $ 8,545,896 $ 5,522,916 $ 9,538,065 $ 23,606,877
Year Ended December 31, 2021 ^1^
Net Interest Income $ 284,597 $ 194,409 $ 18,284 $ 497,290
Provision for Credit Losses 5,764 201 (56,465 ) (50,500 )
Net Interest Income After Provision for Credit Losses 278,833 194,208 74,749 547,790
Noninterest Income 131,292 30,637 9,424 171,353
Noninterest Expense (304,177 ) (64,470 ) (24,942 ) (393,589 )
Income Before Income Taxes 105,948 160,375 59,231 325,554
Provision for Income Taxes (26,474 ) (39,070 ) (6,638 ) (72,182 )
Net Income $ 79,474 $ 121,305 $ 52,593 $ 253,372
Total Assets as of December 31, 2021 ^1^ $ 7,701,447 $ 5,107,001 $ 9,976,493 $ 22,784,941
^1^Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawai‘i Corporation and Subsidiaries
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Selected Quarterly Financial Data Table 14
Three Months Ended
December 31, September 30, June 30, March 31, December 31,
(dollars in thousands, except per share amounts) 2022 2022 2022 2022 2021
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases $ 128,683 $ 115,013 $ 101,663 $ 94,439 $ 97,853
Income on Investment Securities
Available-for-Sale 18,476 16,995 17,984 17,100 15,850
Held-to-Maturity 23,708 20,243 18,838 18,701 18,325
Deposits 13 10 5 4 1
Funds Sold 1,093 2,335 719 127 104
Other 340 322 353 202 176
Total Interest Income 172,313 154,918 139,562 130,573 132,309
Interest Expense
Deposits 23,494 10,296 3,535 2,353 2,898
Securities Sold Under Agreements to Repurchase 4,289 2,745 2,794 2,772 2,834
Funds Purchased 318 40 57 2 6
Short-Term Borrowings 1,978 - 92 - -
Other Debt 1,496 182 182 183 183
Total Interest Expense 31,575 13,263 6,660 5,310 5,921
Net Interest Income 140,738 141,655 132,902 125,263 126,388
Provision for Credit Losses 200 - (2,500 ) (5,500 ) (9,700 )
Net Interest Income After Provision for Credit Losses 140,538 141,655 135,402 130,763 136,088
Noninterest Income
Trust and Asset Management 10,652 10,418 11,457 11,276 11,693
Mortgage Banking 991 1,002 1,247 2,740 2,908
Service Charges on Deposit Accounts 7,513 7,526 7,309 7,272 6,861
Fees, Exchange, and Other Service Charges 13,906 13,863 14,193 12,952 14,439
Investment Securities Losses, Net (1,124 ) (2,147 ) (1,295 ) (1,545 ) (1,258 )
Annuity and Insurance 1,087 1,034 870 791 876
Bank-Owned Life Insurance 2,475 2,486 2,658 2,349 1,907
Other 5,672 (3,522 ) 5,719 7,716 5,148
Total Noninterest Income 41,172 30,660 42,158 43,551 42,574
Noninterest Expense
Salaries and Benefits 57,639 59,938 57,769 59,924 59,434
Net Occupancy 9,499 10,186 9,930 9,826 9,028
Net Equipment 9,942 9,736 9,543 9,153 9,105
Data Processing 4,579 4,616 4,607 4,560 4,696
Professional Fees 3,958 3,799 3,542 3,258 3,427
FDIC Insurance 1,774 1,680 1,590 1,502 1,619
Other 15,312 15,794 15,958 15,651 14,369
Total Noninterest Expense 102,703 105,749 102,939 103,874 101,678
Income Before Provision for Income Taxes 79,007 66,566 74,621 70,440 76,984
Provision for Income Taxes 17,700 13,765 17,759 15,606 13,147
Net Income $ 61,307 $ 52,801 $ 56,862 $ 54,834 $ 63,837
Preferred Stock Dividends 1,969 1,969 1,969 1,969 1,969
Net Income Available to Common Shareholders $ 59,338 $ 50,832 $ 54,893 $ 52,865 $ 61,868
Basic Earnings Per Common Share $ 1.51 $ 1.28 $ 1.38 $ 1.33 $ 1.56
Diluted Earnings Per Common Share $ 1.50 $ 1.28 $ 1.38 $ 1.32 $ 1.55
Balance Sheet Totals
Loans and Leases $ 13,646,420 $ 13,321,606 $ 12,951,573 $ 12,544,492 $ 12,259,076
Total Assets 23,606,877 23,134,040 23,232,699 23,000,317 22,784,941
Total Deposits 20,615,696 20,888,773 21,025,681 20,716,287 20,360,108
Total Shareholders' Equity 1,316,995 1,282,384 1,348,746 1,448,885 1,611,611
Performance Ratios
Return on Average Assets 1.05 % 0.91 % 1.00 % 0.97 % 1.12 %
Return on Average Shareholders' Equity 18.91 15.31 16.40 14.18 15.92
Return on Average Common Equity 21.28 16.98 18.19 15.44 17.40
Efficiency Ratio ^1^ 56.46 61.37 58.80 61.53 60.18
Net Interest Margin ^2^ 2.60 2.60 2.47 2.34 2.34
^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
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Hawaii Economic Trends Table 15
Eleven Months Ended Year Ended
(dollars in millions; jobs in thousands) November 30, 2022 December 31, 2021 December 31, 2020
Hawaii Economic Trends
State General Fund Revenues^1^ $ 8,675.9 16.7 % $ 8,137.9 26.9 % $ 6,415.1 (12.3 ) %
General Excise and Use Tax Revenue^1^ 3,916.3 18.9 3,604.3 18.6 3,038.8 (15.6 )
Jobs ^2^ 652.3 642.6 594.4
November 31, December 31,
2022 2021 2020
Unemployment, seasonally adjusted^3^
Statewide 3.3 % 4.3 % 9.8 %
Honolulu County 3.4 4.0 8.8
Hawaii County 3.0 4.2 9.3
Maui County 3.5 5.4 13.9
Kauai County 3.2 6.0 13.6
December 31,
(1-year percentage change, except months of inventory) 2022 2021 2020 2019
Housing Trends (Single Family Oahu) ^4^
Median Home Price 11.6 % 19.3 % 5.2 % (0.1 ) %
Home Sales Volume (units) (23.2 ) % 17.9 % 2.3 % 3.9 %
Months of Inventory 2.1 0.8 1.4 2.5
Monthly Visitor Arrivals, Percentage Change
(in thousands) Not Seasonally Adjusted from Previous Year
Tourism ^5^
November 30, 2022 725.5 18.2 %
October 31, 2022 726.1 31.8
September 30, 2022 691.8 37.1
August 31, 2022 829.7 14.8
July 31, 2022 919.2 4.5
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 753.7 219.6
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
July 31, 2021 879.6 3,798.4
June 30, 2021 791.1 4,534.7
May 31, 2021 629.7 6,807.4
April 30, 2021 484.1 10,506.3
March 31, 2021 439.8 1.1
February 28, 2021 235.3 (71.6 )
January 31, 2021 172.0 (80.1 )
^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

Slide 1

Bank of Hawai‘i Corporation fourth quarter 2022 financial report January 23, 2023 Exhibit 99.2

Slide 2

this presentation, and other statements made by the Company in connection with it, may contain forward-looking statements concerning, among other things, forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. we have not committed to update forward-looking statements to reflect later events or circumstances. disclosure 2 forward-looking statements

Slide 3

unemployment experience & forecast source for Hawaii unemployment: University of Hawaii Economic Research Organization (UHERO), seasonally adjusted source for national unemployment: Bureau of Labor Statistics, seasonally adjusted 3

Slide 4

4 visitor arrivals monthly by market, indexed to January 2017 source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT)

Slide 5

revenue per available room revenue per available room (RevPAR) 5 source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT)

Slide 6

stable real estate prices Oahu market indicators – Dec 2022 6 source: Honolulu Board of Realtors, compiled from MLS data

Slide 7

4Q financial update

Slide 8

balanced core loan growth $ in millions 8 annual growth rate commercial consumer $13,646 note: numbers may not add up due to rounding, CAGR, annual growth rate, and q-o-q core loan growth exclude PPP market share includes four banks: Bank of Hawai‘i, First Hawaiian Bank, American Savings Bank (ASB), and Central Pacific Bank, excludes mainland loans, note: mainland loans not disclosed for ASB and assumed to be zero. market share unavailable for 4Q22 2016 – 2022 CAGR commercial: 7.1% consumer: 7.4%

Slide 9

low cost, long duration deposits $ in billions 9 source: S&P Capital IQ 2016 – 2022 CAGR: 6.3%

Slide 10

strong deposit beta performance $ in billions 10 note: beta calculated as change in average total deposit rate divided by change in average Fed Funds rate

Slide 11

11 cashflow and repricing note: numbers may not add up due to rounding matured/run-off yield reinvestment opportunity

Slide 12

NII year-over-year comparison $ in millions 12 note: numbers may not add up due to rounding; core NII excludes PPP and significant items

Slide 13

NII headwinds $ in millions 13 note: numbers may not add up due to rounding

Slide 14

near term NII drivers 14 likely dilutive

yield curve

deposit cost uncertain

deposit levels

deposit beta likely accretive

loan growth

earning asset yields

Slide 15

disciplined expenses $ in millions 15 rationalization of expenses across core and innovation note: numbers may not add up due to rounding

Slide 16

financial summary $ in millions, except per share amounts 16 note: numbers may not add up due to rounding

Slide 17

17 strong risk-based capital fortress capital position note: 4Q22 regulatory capital ratios are preliminary; KBW Regional Banking Index (KRX) as of 1/4/22

Slide 18

4Q credit update

Slide 19

loan portfolio excluding PPP 19 40% commercial 73% real estate secured wtd avg LTV 57% 57% w/ BOH ≥ 10 yrs avg balance $0.7MM CRE C&I residential mortgage home equity auto leasing other consumer construction 60% consumer 84% real estate secured wtd avg LTV 55% 57% w/ BOH ≥ 10 yrs 80% of portfolio secured with quality real estate with combined weighted average loan to value of 56% note: excludes $20MM in PPP loan balances including deferred costs and fees

Slide 20

credit quality 20 * 82% of total criticized in CRE with 61% wtd avg LTV

Slide 21

production quality 21 commercial consumer

Slide 22

reserve trend 22 $ in millions allowance for credit losses note: balances and coverage ratio based on allowance for credit losses – loans and leases

Slide 23

well positioned for current environment 23 market leading brand awareness and penetration

superior credit quality

deposit betas fortified by granular, long-tenured deposit base

controlled expenses

solid capital

Slide 24

Q & A

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