Equibles

8-K

BANK OF HAWAII CORP (BOH)

8-K 2023-10-23 For: 2023-10-23
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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 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
--- --- --- ---
(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 1/40th 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 October 23, 2023, Bank of Hawaii Corporation announced its results of operations for the quarter ended September 30, 2023. 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

Exhibit No.
99.1 October 23, 2023 Press Release: Bank of Hawaii Corporation Third Quarter 2023 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 2023 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: October 23, 2023 Bank of Hawaii Corporation
By: /s/ Patrick M. McGuirk
Patrick M. McGuirk
Vice Chair and Chief Administrative Officer

EX-99.1

Exhibit 99.1

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Bank of Hawai‘i Corporation Third Quarter 2023 Financial Results

• Diluted Earnings Per Common Share $1.17

• Net Income $47.9 Million

• Total Deposits Up 1.4% Linked Quarter

• Board of Directors Declares Dividend of $0.70 Per Common Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (October 23, 2023) -- Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $1.17 for the third quarter of 2023, compared with diluted earnings per common share of $1.12 in the previous quarter and $1.28 in the same quarter of 2022. Net income for the third quarter of 2023 was $47.9 million, up 4.0% from the previous quarter and down 9.3% from the same quarter of 2022. The return on average common equity for the third quarter of 2023 was 15.38% compared with 14.95% in the previous quarter and 16.98% in the same quarter of 2022.

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

Financial Highlights

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

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Bank of Hawai‘i Corporation Third Quarter 2023 Financial Results Page 2

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

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

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

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

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

Asset Quality

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

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Bank of Hawai‘i Corporation Third Quarter 2023 Financial Results Page 3

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

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

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

Balance Sheet

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

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

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

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

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Bank of Hawai‘i Corporation Third Quarter 2023 Financial Results Page 4

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

Capital and Dividends

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

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

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

The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on December 14, 2023 to shareholders of record at the close of business on November 30, 2023.

On October 5, 2023, the Company announced that the Board of Directors declared the quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, on its preferred stock. The depositary shares representing the Series A Preferred Stock are traded on the NYSE under the symbol “BOH.PRA.” The dividend will be payable on November 1, 2023 to shareholders of record of the preferred stock as of the close of business on October 17, 2023.

Conference Call Information

The Company will review its third quarter financial results today at 8:00 a.m. Hawai‘i Time (2:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawai‘i Corporation's website, www.boh.com. The webcast can be accessed via the link: https://register.vevent.com/register/BId0e4643fbbd64cdfae5f15202d1ffbba. A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawai‘i Time on Monday, October 23, 2023. The replay will be available on the Company's website, www.boh.com.

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Bank of Hawai‘i Corporation Third Quarter 2023 Financial Results Page 5

Investor Announcements

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

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawai‘i Corporation's Annual Report on Form 10-K for the year ended December 31, 2022 and its Form 10-Q for the fiscal quarter ended March 31, 2023 and June 30, 2023, which were filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

Bank of Hawai‘i Corporation is an independent regional financial services company serving businesses, consumers, and governments in 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 Nine Months Ended
September 30, June 30, September 30, September 30,
(dollars in thousands, except per share amounts) 2023 2023 2022 2023 2022
For the Period:
Operating Results
Net Interest Income $ 120,937 $ 124,348 $ 141,655 $ 381,240 $ 399,820
Provision for Credit Losses 2,000 2,500 - 6,500 (8,000 )
Total Noninterest Income 50,334 43,255 30,660 134,326 116,369
Total Noninterest Expense 105,601 104,036 105,749 321,556 312,562
Pre-Provision Net Revenue 65,670 63,567 66,566 194,010 203,627
Net Income 47,903 46,061 52,801 140,806 164,497
Net Income Available to Common Shareholders 45,934 44,092 50,832 134,899 158,590
Basic Earnings Per Common Share 1.17 1.12 1.28 3.44 4.00
Diluted Earnings Per Common Share 1.17 1.12 1.28 3.42 3.98
Dividends Declared Per Common Share 0.70 0.70 0.70 2.10 2.10
Performance Ratios
Return on Average Assets 0.78 % 0.77 % 0.91 % 0.78 % 0.96 %
Return on Average Shareholders' Equity 13.92 13.55 15.31 13.91 15.25
Return on Average Common Equity 15.38 14.95 16.98 15.37 16.81
Efficiency Ratio 1 61.66 62.07 61.37 62.37 60.55
Net Interest Margin 2 2.13 2.22 2.60 2.27 2.47
Dividend Payout Ratio 3 59.83 62.50 54.69 61.05 52.50
Average Shareholders' Equity to Average Assets 5.60 5.65 5.91 5.61 6.28
Average Balances
Average Loans and Leases $ 13,903,214 $ 13,876,754 $ 13,126,717 $ 13,833,164 $ 12,709,045
Average Assets 24,387,421 24,114,443 23,135,820 24,124,360 22,959,246
Average Deposits 20,492,082 20,018,601 20,863,681 20,314,079 20,621,310
Average Shareholders' Equity 1,365,143 1,363,059 1,367,946 1,353,815 1,441,706
Per Share of Common Stock
Book Value $ 29.78 $ 29.66 $ 27.55 $ 29.78 $ 27.55
Tangible Book Value 28.99 28.87 26.76 28.99 26.76
Market Value
Closing 49.69 41.23 76.12 49.69 76.12
High 58.63 52.37 85.45 81.73 92.38
Low 39.02 30.83 70.89 30.83 70.89
September 30, June 30, December 31, September 30,
2023 2023 2022 2022
As of Period End:
Balance Sheet Totals
Loans and Leases $ 13,919,491 $ 13,914,889 $ 13,646,420 $ 13,321,606
Total Assets 23,549,785 24,947,936 23,606,877 23,134,040
Total Deposits 20,802,309 20,508,615 20,615,696 20,888,773
Other Debt 560,217 1,760,243 410,294 10,319
Total Shareholders' Equity 1,363,840 1,358,279 1,316,995 1,282,384
Asset Quality
Non-Performing Assets $ 11,519 $ 11,477 $ 12,647 $ 13,868
Allowance for Credit Losses - Loans and Leases 145,263 145,367 144,439 146,436
Allowance to Loans and Leases Outstanding 4 1.04 % 1.04 % 1.06 % 1.10 %
Capital Ratios 5
Common Equity Tier 1 Capital Ratio 11.29 % 11.00 % 10.92 % 11.42 %
Tier 1 Capital Ratio 12.53 12.21 12.15 12.72
Total Capital Ratio 13.56 13.24 13.17 13.82
Tier 1 Leverage Ratio 7.22 7.21 7.37 7.28
Total Shareholders' Equity to Total Assets 5.79 5.44 5.58 5.54
Tangible Common Equity to Tangible Assets 6 4.90 4.60 4.69 4.64
Tangible Common Equity to Risk-Weighted Assets 6 8.10 7.97 7.76 7.97
Non-Financial Data
Full-Time Equivalent Employees 1,919 2,025 2,076 2,115
Branches 51 51 51 51
ATMs 320 320 320 316
1  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
2  Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
3  Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.
4  The numerator comprises the Allowance for Credit Losses - Loans and Leases.
5  Regulatory capital ratios as of September 30, 2023 are preliminary.
6  Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures.
Tangible common equity is defined by the Company as common shareholders' equity minus goodwill.
See Table 2 "Reconciliation of Non-GAAP Financial Measures".
Bank of Hawai‘i Corporation and Subsidiaries
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Reconciliation of Non-GAAP Financial Measures Table 2
September 30, June 30, December 31, September 30,
(dollars in thousands) 2023 2023 2022 2022
Total Shareholders' Equity $ 1,363,840 $ 1,358,279 $ 1,316,995 $ 1,282,384
Less: Preferred Stock 180,000 180,000 180,000 180,000
Goodwill 31,517 31,517 31,517 31,517
Tangible Common Equity $ 1,152,323 $ 1,146,762 $ 1,105,478 $ 1,070,867
Total Assets $ 23,549,785 $ 24,947,936 $ 23,606,877 $ 23,134,040
Less: Goodwill 31,517 31,517 31,517 31,517
Tangible Assets $ 23,518,268 $ 24,916,419 $ 23,575,360 $ 23,102,523
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements 1 $ 14,222,825 $ 14,391,943 $ 14,238,798 $ 13,428,188
Total Shareholders' Equity to Total Assets 5.79 % 5.44 % 5.58 % 5.54 %
Tangible Common Equity to Tangible Assets (Non-GAAP) 4.90 % 4.60 % 4.69 % 4.64 %
Tier 1 Capital Ratio 1 12.53 % 12.21 % 12.15 % 12.72 %
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1 8.10 % 7.97 % 7.76 % 7.97 %
1  Regulatory capital ratios as of September 30, 2023 are preliminary.
Bank of Hawai‘i Corporation and Subsidiaries
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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) 2023 2023 2022 2023 2022
Interest Income
Interest and Fees on Loans and Leases $ 151,245 $ 144,541 $ 115,013 $ 432,287 $ 311,115
Income on Investment Securities
Available-for-Sale 23,552 23,301 16,995 70,746 52,079
Held-to-Maturity 22,838 23,375 20,243 70,161 57,782
Deposits 18 18 10 63 19
Funds Sold 12,828 6,395 2,335 22,589 3,181
Other 1,464 2,121 322 4,182 877
Total Interest Income 211,945 199,751 154,918 600,028 425,053
Interest Expense
Deposits 72,153 53,779 10,296 163,726 16,184
Securities Sold Under Agreements to Repurchase 4,034 5,436 2,745 14,847 8,311
Funds Purchased - 184 40 888 99
Short-Term Borrowings - 2,510 - 5,713 92
Other Debt 14,821 13,494 182 33,614 547
Total Interest Expense 91,008 75,403 13,263 218,788 25,233
Net Interest Income 120,937 124,348 141,655 381,240 399,820
Provision for Credit Losses 2,000 2,500 - 6,500 (8,000 )
Net Interest Income After Provision for Credit Losses 118,937 121,848 141,655 374,740 407,820
Noninterest Income
Trust and Asset Management 10,548 11,215 10,418 32,453 33,151
Mortgage Banking 1,059 1,176 1,002 3,239 4,989
Service Charges on Deposit Accounts 7,843 7,587 7,526 23,167 22,107
Fees, Exchange, and Other Service Charges 13,824 14,150 13,863 41,782 41,008
Investment Securities Losses, Net (6,734 ) (1,310 ) (2,147 ) (9,836 ) (4,987 )
Annuity and Insurance 1,156 1,038 1,034 3,465 2,695
Bank-Owned Life Insurance 2,749 2,876 2,486 8,467 7,493
Other 19,889 6,523 (3,522 ) 31,589 9,913
Total Noninterest Income 50,334 43,255 30,660 134,326 116,369
Noninterest Expense
Salaries and Benefits 58,825 56,175 59,938 180,088 177,631
Net Occupancy 10,327 9,991 10,186 30,190 29,942
Net Equipment 9,477 10,573 9,736 30,425 28,432
Data Processing 4,706 4,599 4,616 13,888 13,783
Professional Fees 3,846 4,651 3,799 12,380 10,599
FDIC Insurance 3,361 3,173 1,680 9,768 4,772
Other 15,059 14,874 15,794 44,817 47,403
Total Noninterest Expense 105,601 104,036 105,749 321,556 312,562
Income Before Provision for Income Taxes 63,670 61,067 66,566 187,510 211,627
Provision for Income Taxes 15,767 15,006 13,765 46,704 47,130
Net Income $ 47,903 $ 46,061 $ 52,801 $ 140,806 $ 164,497
Preferred Stock Dividends 1,969 1,969 1,969 5,908 5,908
Net Income Available to Common Shareholders $ 45,934 $ 44,092 $ 50,832 $ 134,898 $ 158,589
Basic Earnings Per Common Share $ 1.17 $ 1.12 $ 1.28 $ 3.44 $ 4.00
Diluted Earnings Per Common Share $ 1.17 $ 1.12 $ 1.28 $ 3.42 $ 3.98
Dividends Declared Per Common Share $ 0.70 $ 0.70 $ 0.70 $ 2.10 $ 2.10
Basic Weighted Average Common Shares 39,274,626 39,241,559 39,567,047 39,264,450 39,670,409
Diluted Weighted Average Common Shares 39,420,531 39,317,521 39,758,209 39,392,433 39,848,795
Bank of Hawai‘i Corporation and Subsidiaries
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Consolidated Statements of Comprehensive Income (Loss) Table 4
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,
(dollars in thousands) 2023 2023 2022 2023 2022
Net Income $ 47,903 $ 46,061 $ 52,801 $ 140,806 $ 164,497
Other Comprehensive Loss, Net of Tax:
Net Unrealized Losses on Investment Securities (18,264 ) (18,217 ) (79,600 ) (7,205 ) (382,371 )
Defined Benefit Plans 84 84 354 252 1,059
Other Comprehensive Loss (18,180 ) (18,133 ) (79,246 ) (6,953 ) (381,312 )
Comprehensive Income (Loss) $ 29,723 $ 27,928 $ (26,445 ) $ 133,853 $ (216,815 )
Bank of Hawai‘i Corporation and Subsidiaries
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Consolidated Statements of Condition Table 5
June 30, December 31, September 30,
(dollars in thousands) 2023 2022 2022
Assets
Interest-Bearing Deposits in Other Banks 4,676 $ 2,261 $ 3,724 $ 5,429
Funds Sold 386,086 1,273,109 81,364 402,714
Investment Securities
Available-for-Sale 2,387,324 2,666,723 2,844,823 2,424,608
Held-to-Maturity (Fair Value of 4,104,469; 4,411,003; 4,615,393; and 4,668,074) 5,088,013 5,202,698 5,414,139 5,461,160
Loans Held for Sale 1,450 3,359 1,035 418
Loans and Leases 13,919,491 13,914,889 13,646,420 13,321,606
Allowance for Credit Losses (145,263 ) (145,367 ) (144,439 ) (146,436 )
Net Loans and Leases 13,774,228 13,769,522 13,501,981 13,175,170
Total Earning Assets 21,641,777 22,917,672 21,847,066 21,469,499
Cash and Due from Banks 261,464 398,072 316,679 247,506
Premises and Equipment, Net 196,094 200,297 206,777 208,251
Operating Lease Right-of-Use Assets 86,896 89,286 92,307 94,613
Accrued Interest Receivable 65,541 64,720 61,002 50,143
Foreclosed Real Estate 1,040 1,040 1,040 1,040
Mortgage Servicing Rights 21,273 21,626 22,619 23,104
Goodwill 31,517 31,517 31,517 31,517
Bank-Owned Life Insurance 458,260 456,889 453,882 451,407
Other Assets 785,923 766,817 573,988 556,960
Total Assets 23,549,785 $ 24,947,936 $ 23,606,877 $ 23,134,040
Liabilities
Deposits
Noninterest-Bearing Demand 5,687,442 $ 5,968,344 $ 6,714,982 $ 7,300,157
Interest-Bearing Demand 3,925,469 4,119,166 4,232,567 4,399,625
Savings 8,530,384 7,756,426 7,962,410 7,954,006
Time 2,659,014 2,664,679 1,705,737 1,234,985
Total Deposits 20,802,309 20,508,615 20,615,696 20,888,773
Securities Sold Under Agreements to Repurchase 150,490 725,490 725,490 425,490
Other Debt 560,217 1,760,243 410,294 10,319
Operating Lease Liabilities 95,453 97,768 100,526 102,705
Retirement Benefits Payable 26,074 26,434 26,991 37,053
Accrued Interest Payable 33,434 26,737 9,698 3,405
Taxes Payable 6,965 132 7,104 13,527
Other Liabilities 511,003 444,238 394,083 370,384
Total Liabilities 22,185,945 23,589,657 22,289,882 21,851,656
Shareholders' Equity
Preferred Stock (.01 par value; authorized 180,000 shares;
issued / outstanding: September 30, 2023; June 30, 2023; December 31, 2022;
and September 30, 2022 - 180,000) 180,000 180,000 180,000 180,000
Common Stock (.01 par value; authorized 500,000,000 shares;
issued / outstanding: September 30, 2023 - 58,767,820 / 39,748,700;
June 30, 2023 - 58,771,036 / 39,725,348; December 31, 2022 - 58,733,625 / 39,835,750;
and September 30, 2022 - 58,728,796 / 40,011,473) 583 583 582 582
Capital Surplus 632,425 628,202 620,578 615,985
Accumulated Other Comprehensive Loss (441,611 ) (423,431 ) (434,658 ) (447,694 )
Retained Earnings 2,108,702 2,091,289 2,055,912 2,024,641
Treasury Stock, at Cost (Shares: September 30, 2023 - 19,019,120; June 30, 2023 - 19,045,688;
December 31, 2022 - 18,897,875; and September 30, 2022 - 18,717,323) (1,116,259 ) (1,118,364 ) (1,105,419 ) (1,091,130 )
Total Shareholders' Equity 1,363,840 1,358,279 1,316,995 1,282,384
Total Liabilities and Shareholders' Equity 23,549,785 $ 24,947,936 $ 23,606,877 $ 23,134,040

All values are in US Dollars.

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity Table 6
Accumulated
Common Other
Preferred Shares Common Capital Comprehensive Retained Treasury
(dollars in thousands) Stock Outstanding Stock Surplus Loss Earnings Stock Total
Balance as of December 31, 2022 180,000 $ 180,000 39,835,750 $ 582 $ 620,578 $ (434,658 ) $ 2,055,912 $ (1,105,419 ) $ 1,316,995
Net Income - - - - - - 140,806 - 140,806
Other Comprehensive Loss - - - - - (6,953 ) - - (6,953 )
Share-Based Compensation - - - - 11,979 - - - 11,979
Common Stock Issued under Purchase and
Equity Compensation Plans - - 121,040 1 (132 ) - 1,716 3,216 4,801
Common Stock Repurchased - - (208,090 ) - - - - (14,056 ) (14,056 )
Cash Dividends Declared Common Stock (2.10 per share) - - - - - - (83,824 ) - (83,824 )
Cash Dividends Declared Preferred Stock - - - - - - (5,908 ) - (5,908 )
Balance as of September 30, 2023 180,000 $ 180,000 39,748,700 $ 583 $ 632,425 $ (441,611 ) $ 2,108,702 $ (1,116,259 ) $ 1,363,840
Balance as of December 31, 2021 180,000 $ 180,000 40,253,193 $ 581 $ 602,508 $ (66,382 ) $ 1,950,375 $ (1,055,471 ) $ 1,611,611
Net Income - - - - - - 164,497 - 164,497
Other Comprehensive Loss - - - - - (381,312 ) - - (381,312 )
Share-Based Compensation - - - - 11,947 - - - 11,947
Common Stock Issued under Purchase and
Equity Compensation Plans - - 247,966 1 1,530 - 256 3,889 5,676
Common Stock Repurchased - - (489,686 ) - - - - (39,548 ) (39,548 )
Cash Dividends Declared Common Stock (2.10 per share) - - - - - - (84,579 ) - (84,579 )
Cash Dividends Declared Preferred Stock - - - - - - (5,908 ) - (5,908 )
Balance as of September 30, 2022 180,000 $ 180,000 40,011,473 $ 582 $ 615,985 $ (447,694 ) $ 2,024,641 $ (1,091,130 ) $ 1,282,384

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
June 30, 2023 September 30, 2022
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 2.9 $ - 2.40 % $ 5.1 $ - 1.48 % $ 2.9 $ - 1.32 %
Funds Sold 944.8 12.8 5.31 500.1 6.4 5.06 411.8 2.3 2.22
Investment Securities
Available-for-Sale
Taxable 2,605.4 23.5 3.60 2,741.1 23.2 3.39 3,481.9 17.0 1.95
Non-Taxable 3.5 - 3.21 9.6 0.1 4.40 2.5 - 1.56
Held-to-Maturity
Taxable 5,118.6 22.7 1.77 5,231.3 23.2 1.78 4,645.7 20.1 1.73
Non-Taxable 35.0 0.2 2.10 35.2 0.2 2.10 35.6 0.2 2.10
Total Investment Securities 7,762.5 46.4 2.39 8,017.2 46.7 2.33 8,165.7 37.3 1.82
Loans Held for Sale 3.8 0.1 6.28 2.7 - 5.50 4.3 0.1 4.46
Loans and Leases 3
Commercial and Industrial 1,515.0 18.9 4.96 1,456.1 17.5 4.82 1,353.8 12.5 3.66
Paycheck Protection Program 13.1 - 1.32 14.5 - 1.30 28.0 0.2 3.02
Commercial Mortgage 3,792.6 51.1 5.35 3,814.9 49.3 5.19 3,530.9 33.3 3.74
Construction 241.9 3.7 6.09 246.8 3.5 5.70 233.0 2.8 4.81
Commercial Lease Financing 62.6 0.3 1.84 65.4 0.3 1.67 89.1 0.4 1.58
Residential Mortgage 4,715.3 42.8 3.62 4,704.0 41.2 3.50 4,526.6 37.4 3.30
Home Equity 2,283.5 20.1 3.49 2,272.3 19.0 3.35 2,144.8 16.4 3.04
Automobile 868.0 8.2 3.75 879.3 7.7 3.53 795.5 6.4 3.19
Other 4 411.2 6.5 6.24 423.5 6.4 6.04 425.0 5.9 5.48
Total Loans and Leases 13,903.2 151.6 4.34 13,876.8 144.9 4.19 13,126.7 115.3 3.49
Other 91.6 1.5 6.40 94.8 2.2 8.94 36.9 0.3 3.49
Total Earning Assets 22,708.8 212.4 3.72 22,496.7 200.2 3.56 21,748.3 155.3 2.84
Cash and Due from Banks 289.8 316.6 233.5
Other Assets 1,388.8 1,301.1 1,154.0
Total Assets 24,387.4 $ 24,114.4 $ 23,135.8
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand 3,929.7 6.6 0.67 $ 4,037.4 7.5 0.75 $ 4,286.0 1.4 0.13
Savings 7,952.6 39.1 1.95 7,667.6 26.6 1.39 7,962.0 6.6 0.33
Time 2,767.8 26.5 3.79 2,296.1 19.7 3.44 1,146.9 2.3 0.79
Total Interest-Bearing Deposits 14,650.1 72.2 1.95 14,001.1 53.8 1.54 13,394.9 10.3 0.30
Funds Purchased - - - 14.6 0.2 5.00 4.9 0.1 3.17
Short-Term Borrowings - - - 195.2 2.5 5.09 - - -
Securities Sold Under Agreements to Repurchase 528.5 4.0 2.99 725.5 5.4 2.96 425.5 2.7 2.52
Other Debt 1,365.7 14.8 4.31 1,255.8 13.5 4.31 10.3 0.2 7.05
Total Interest-Bearing Liabilities 16,544.3 91.0 2.18 16,192.2 75.4 1.87 13,835.6 13.3 0.38
Net Interest Income $ 121.4 $ 124.8 $ 142.0
Interest Rate Spread 1.54 % 1.69 % 2.46 %
Net Interest Margin 2.13 % 2.22 % 2.60 %
Noninterest-Bearing Demand Deposits 5,842.0 6,017.5 7,468.8
Other Liabilities 636.0 541.6 463.5
Shareholders' Equity 1,365.1 1,363.1 1,367.9
Total Liabilities and Shareholders' Equity 24,387.4 $ 24,114.4 $ 23,135.8
1  Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2  Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of 437,000, 471,000, and 343,000
for the three months ended September 30, 2023, June 30, 2023, and September 30, 2022, respectively.
3  Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
4  Comprised of other consumer revolving credit, installment, and consumer lease financing.

All values are in US Dollars.

Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1 Table 7b
Nine Months Ended
September 30, 2022
Income / Yield / Average Income / Yield /
(dollars in millions) Expense 2 Rate Balance Expense 2 Rate
Earning Assets
Interest-Bearing Deposits in Other Banks 3.2 $ 0.1 2.60 % $ 3.3 $ - 0.76 %
Funds Sold 582.7 22.6 5.11 308.6 3.2 1.36
Investment Securities
Available-for-Sale
Taxable 2,721.5 70.6 3.46 3,998.2 52.0 1.74
Non-Taxable 7.6 0.2 4.22 2.8 - 1.84
Held-to-Maturity
Taxable 5,227.8 69.7 1.78 4,530.4 57.4 1.69
Non-Taxable 35.2 0.6 2.10 35.7 0.6 2.10
Total Investment Securities 7,992.1 141.1 2.36 8,567.1 110.0 1.71
Loans Held for Sale 2.7 0.1 5.82 8.1 0.2 3.43
Loans and Leases 3
Commercial and Industrial 1,461.2 52.7 4.82 1,339.0 31.4 3.13
Paycheck Protection Program 14.8 0.2 1.70 51.7 2.5 6.59
Commercial Mortgage 3,781.7 145.6 5.15 3,350.3 81.3 3.25
Construction 256.2 11.1 5.81 227.7 7.3 4.30
Commercial Lease Financing 64.9 0.5 1.11 94.0 1.0 1.49
Residential Mortgage 4,695.4 123.8 3.51 4,439.1 108.6 3.26
Home Equity 2,265.2 57.3 3.38 2,026.5 44.1 2.91
Automobile 873.0 23.2 3.55 764.2 18.4 3.21
Other 4 420.8 19.0 6.04 416.5 17.0 5.44
Total Loans and Leases 13,833.2 433.4 4.19 12,709.0 311.6 3.27
Other 84.6 4.1 6.59 37.2 0.9 3.14
Total Earning Assets 22,498.5 601.4 3.57 21,633.3 425.9 2.63
Cash and Due from Banks 308.4 235.0
Other Assets 1,317.5 1,090.9
Total Assets 24,124.4 $ 22,959.2
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand 4,060.0 19.3 0.64 $ 4,459.9 2.6 0.08
Savings 7,876.1 86.3 1.46 7,733.3 9.5 0.16
Time 2,288.2 58.1 3.40 1,023.6 4.1 0.53
Total Interest-Bearing Deposits 14,224.3 163.7 1.54 13,216.8 16.2 0.16
Funds Purchased 24.8 0.9 4.72 12.4 0.1 1.05
Short-Term Borrowings 152.4 5.7 4.94 11.5 0.1 1.06
Securities Sold Under Agreements to Repurchase 659.1 14.8 2.97 441.1 8.3 2.48
Other Debt 1,043.6 33.7 4.31 10.3 0.6 7.05
Total Interest-Bearing Liabilities 16,104.2 218.8 1.81 13,692.1 25.3 0.25
Net Interest Income $ 382.6 $ 400.6
Interest Rate Spread 1.76 % 2.38 %
Net Interest Margin 2.27 % 2.47 %
Noninterest-Bearing Demand Deposits 6,089.8 7,404.5
Other Liabilities 576.6 420.9
Shareholders' Equity 1,353.8 1,441.7
Total Liabilities and Shareholders' Equity 24,124.4 $ 22,959.2
1  Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2  Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of 1,403,000 and 818,000
for the nine months ended September 30, 2023 and September 30, 2022, respectively.
3  Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
4  Comprised of other consumer revolving credit, installment, and consumer lease financing.

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 September 30, 2023
Compared to June 30, 2023
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Funds Sold $ 6.1 $ 0.3 $ 6.4
Investment Securities
Available-for-Sale
Taxable (1.1 ) 1.4 0.3
Non-Taxable (0.1 ) - (0.1 )
Held-to-Maturity
Taxable (0.5 ) - (0.5 )
Non-Taxable - - -
Total Investment Securities (1.7 ) 1.4 (0.3 )
Loans Held for Sale 0.1 - 0.1
Loans and Leases
Commercial and Industrial 0.8 0.6 1.4
Paycheck Protection Program - - -
Commercial Mortgage (0.2 ) 2.0 1.8
Construction (0.1 ) 0.3 0.2
Commercial Lease Financing - - -
Residential Mortgage 0.2 1.4 1.6
Home Equity 0.1 1.0 1.1
Automobile (0.1 ) 0.6 0.5
Other 2 (0.2 ) 0.3 0.1
Total Loans and Leases 0.5 6.2 6.7
Other (0.1 ) (0.6 ) (0.7 )
Total Change in Interest Income 4.9 7.3 12.2
Change in Interest Expense:
Interest-Bearing Deposits
Demand (0.2 ) (0.7 ) (0.9 )
Savings 1.1 11.4 12.5
Time 4.5 2.3 6.8
Total Interest-Bearing Deposits 5.4 13.0 18.4
Funds Purchased (0.2 ) - (0.2 )
Short-Term Borrowings (2.5 ) - (2.5 )
Securities Sold Under Agreements to Repurchase (1.4 ) - (1.4 )
Other Debt 1.3 - 1.3
Total Change in Interest Expense 2.6 13.0 15.6
Change in Net Interest Income $ 2.3 $ (5.7 ) $ (3.4 )
1  The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- ---
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8b
Three Months Ended September 30, 2023
Compared to September 30, 2022
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Funds Sold $ 5.1 $ 5.4 $ 10.5
Investment Securities
Available-for-Sale
Taxable (5.1 ) 11.6 6.5
Non-Taxable - - -
Held-to-Maturity
Taxable 2.1 0.5 2.6
Non-Taxable - - -
Total Investment Securities (3.0 ) 12.1 9.1
Loans Held for Sale - - -
Loans and Leases
Commercial and Industrial 1.6 4.8 6.4
Paycheck Protection Program (0.1 ) (0.1 ) (0.2 )
Commercial Mortgage 2.6 15.2 17.8
Construction 0.1 0.8 0.9
Commercial Lease Financing (0.2 ) 0.1 (0.1 )
Residential Mortgage 1.7 3.7 5.4
Home Equity 1.2 2.5 3.7
Automobile 0.6 1.2 1.8
Other 2 (0.2 ) 0.8 0.6
Total Loans and Leases 7.3 29.0 36.3
Other 0.7 0.5 1.2
Total Change in Interest Income 10.1 47.0 57.1
Change in Interest Expense:
Interest-Bearing Deposits
Demand (0.1 ) 5.3 5.2
Savings - 32.5 32.5
Time 6.6 17.6 24.2
Total Interest-Bearing Deposits 6.5 55.4 61.9
Funds Purchased (0.1 ) - (0.1 )
Short-Term Borrowings - - -
Securities Sold Under Agreements to Repurchase 0.7 0.6 1.3
Other Debt 14.7 (0.1 ) 14.6
Total Change in Interest Expense 21.8 55.9 77.7
Change in Net Interest Income $ (11.7 ) $ (8.9 ) $ (20.6 )
1  The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- ---
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8c
Nine Months Ended September 30, 2023
Compared to September 30, 2022
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks $ 0.1 $ - $ 0.1
Funds Sold 4.7 14.7 19.4
Investment Securities
Available-for-Sale
Taxable (20.6 ) 39.2 18.6
Non-Taxable 0.1 0.1 0.2
Held-to-Maturity
Taxable 9.2 3.1 12.3
Non-Taxable - - -
Total Investment Securities (11.3 ) 42.4 31.1
Loans Held for Sale (0.2 ) 0.1 (0.1 )
Loans and Leases
Commercial and Industrial 3.1 18.2 21.3
Paycheck Protection Program (1.2 ) (1.1 ) (2.3 )
Commercial Mortgage 11.6 52.7 64.3
Construction 1.0 2.8 3.8
Commercial Lease Financing (0.4 ) (0.1 ) (0.5 )
Residential Mortgage 6.5 8.7 15.2
Home Equity 5.6 7.6 13.2
Automobile 2.7 2.1 4.8
Other 2 0.1 1.9 2.0
Total Loans and Leases 29.0 92.8 121.8
Other 1.7 1.5 3.2
Total Change in Interest Income 24.0 151.5 175.5
Change in Interest Expense:
Interest-Bearing Deposits
Demand (0.3 ) 17.0 16.7
Savings 0.2 76.6 76.8
Time 10.0 44.0 54.0
Total Interest-Bearing Deposits 9.9 137.6 147.5
Funds Purchased 0.2 0.6 0.8
Short-Term Borrowings 4.3 1.3 5.6
Securities Sold Under Agreements to Repurchase 4.7 1.8 6.5
Other Debt 33.4 (0.3 ) 33.1
Total Change in Interest Expense 52.5 141.0 193.5
Change in Net Interest Income $ (28.5 ) $ 10.5 $ (18.0 )
1  The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- ---
Salaries and Benefits Table 9
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,
(dollars in thousands) 2023 2023 2022 2023 2022
Salaries $ 39,426 $ 37,962 $ 37,792 $ 116,005 $ 109,445
Incentive Compensation 2,956 2,984 5,885 9,937 18,069
Share-Based Compensation 4,072 4,096 3,558 11,327 11,319
Commission Expense 676 775 1,005 2,098 3,878
Retirement and Other Benefits 3,809 3,489 4,448 13,186 13,177
Payroll Taxes 2,921 3,310 2,826 12,079 10,804
Medical, Dental, and Life Insurance 2,835 3,568 2,605 10,267 8,430
Separation Expense 2,130 (9 ) 1,819 5,189 2,509
Total Salaries and Benefits $ 58,825 $ 56,175 $ 59,938 $ 180,088 $ 177,631
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- ---
Loan and Lease Portfolio Balances Table 10
September 30, June 30, March 31, December 31, September 30,
(dollars in thousands) 2023 2023 2023 2022 2022
Commercial
Commercial and Industrial $ 1,569,572 $ 1,502,676 $ 1,425,916 $ 1,389,066 $ 1,368,966
Paycheck Protection Program 12,529 13,789 15,175 19,579 22,955
Commercial Mortgage 3,784,339 3,796,769 3,826,283 3,725,542 3,591,943
Construction 251,507 236,428 232,903 260,825 236,498
Lease Financing 61,522 62,779 65,611 69,491 73,989
Total Commercial 5,679,469 5,612,441 5,565,888 5,464,503 5,294,351
Consumer
Residential Mortgage 4,699,140 4,721,976 4,691,298 4,653,072 4,585,723
Home Equity 2,285,974 2,278,105 2,260,001 2,225,950 2,185,484
Automobile 856,113 878,767 877,979 870,396 820,640
Other 1 398,795 423,600 429,356 432,499 435,408
Total Consumer 8,240,022 8,302,448 8,258,634 8,181,917 8,027,255
Total Loans and Leases $ 13,919,491 $ 13,914,889 $ 13,824,522 $ 13,646,420 $ 13,321,606
1  Comprised of other revolving credit, installment, and lease financing.
Deposits
September 30, June 30, March 31, December 31, September 30,
(dollars in thousands) 2023 2023 2023 2022 2022
Consumer $ 10,036,261 $ 10,018,931 $ 10,158,833 $ 10,304,335 $ 10,507,946
Commercial 8,564,536 8,019,971 8,594,441 8,569,670 8,841,781
Public and Other 2,201,512 2,469,713 1,738,026 1,741,691 1,539,046
Total Deposits $ 20,802,309 $ 20,508,615 $ 20,491,300 $ 20,615,696 $ 20,888,773
Average Deposits
Three Months Ended
September 30, June 30, March 31, December 31, September 30,
(dollars in thousands) 2023 2023 2023 2022 2022
Consumer $ 9,963,690 $ 9,977,239 $ 10,178,988 $ 10,295,563 $ 10,485,895
Commercial 8,288,891 8,138,358 8,611,960 8,588,198 9,002,432
Public and Other 2,239,501 1,903,004 1,639,934 1,457,566 1,375,354
Total Deposits $ 20,492,082 $ 20,018,601 $ 20,430,882 $ 20,341,327 $ 20,863,681
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 11
September 30, June 30, March 31, December 31, September 30,
(dollars in thousands) 2023 2023 2023 2022 2022
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial $ 43 $ 17 $ 31 $ 37 $ 49
Commercial Mortgage 2,996 3,107 3,216 3,309 3,396
Total Commercial 3,039 3,124 3,247 3,346 3,445
Consumer
Residential Mortgage 3,706 3,504 4,199 4,239 4,945
Home Equity 3,734 3,809 3,638 4,022 4,438
Total Consumer 7,440 7,313 7,837 8,261 9,383
Total Non-Accrual Loans and Leases 10,479 10,437 11,084 11,607 12,828
Foreclosed Real Estate 1,040 1,040 1,040 1,040 1,040
Total Non-Performing Assets $ 11,519 $ 11,477 $ 12,124 $ 12,647 $ 13,868
Accruing Loans and Leases Past Due 90 Days or More
Consumer
Residential Mortgage $ 3,519 $ 3,560 $ 4,566 $ 2,429 $ 3,279
Home Equity 2,172 2,022 1,723 1,673 1,061
Automobile 393 577 598 589 467
Other 1 643 633 632 683 513
Total Consumer 6,727 6,792 7,519 5,374 5,320
Total Accruing Loans and Leases Past Due 90 Days or More 6,727 6,792 7,519 5,374 5,320
Total Loans and Leases $ 13,919,491 $ 13,914,889 $ 13,824,522 $ 13,646,420 $ 13,321,606
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases 0.08 % 0.08 % 0.08 % 0.09 % 0.10 %
Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate 0.08 % 0.08 % 0.09 % 0.09 % 0.10 %
Ratio of Non-Performing Assets to Total Assets 0.05 % 0.04 % 0.05 % 0.05 % 0.06 %
Ratio of Commercial Non-Performing Assets to Total Commercial Loans
and Leases and Commercial Foreclosed Real Estate 0.05 % 0.06 % 0.06 % 0.06 % 0.07 %
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate 0.10 % 0.10 % 0.11 % 0.11 % 0.13 %
Ratio of Non-Performing Assets and Accruing Loans and Leases
Past Due 90 Days or More to Total Loans and Leases
and Foreclosed Real Estate 0.13 % 0.13 % 0.14 % 0.13 % 0.14 %
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter $ 11,477 $ 12,124 $ 12,647 $ 13,868 $ 15,493
Additions 1,318 1,116 552 704 489
Reductions
Payments (1,017 ) (226 ) (778 ) (1,605 ) (706 )
Return to Accrual Status (259 ) (1,527 ) (297 ) (301 ) (116 )
Sales of Foreclosed Real Estate - - - - (1,292 )
Charge-offs / Write-downs - (10 ) - (19 ) -
Total Reductions (1,276 ) (1,763 ) (1,075 ) (1,925 ) (2,114 )
Balance at End of Quarter $ 11,519 $ 11,477 $ 12,124 $ 12,647 $ 13,868
1  Comprised of other revolving credit, installment, and lease financing.
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Reserve for Credit Losses Table 12
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,
(dollars in thousands) 2023 2023 2022 2023 2022
Balance at Beginning of Period $ 151,702 $ 150,579 $ 154,098 $ 151,247 $ 164,297
Loans and Leases Charged-Off
Commercial
Commercial and Industrial (294 ) (203 ) (147 ) (758 ) (729 )
Consumer
Residential Mortgage - (6 ) - (6 ) (80 )
Home Equity (13 ) (5 ) - (68 ) (90 )
Automobile (1,353 ) (1,293 ) (794 ) (4,309 ) (3,481 )
Other 1 (1,957 ) (2,004 ) (1,924 ) (6,296 ) (5,739 )
Total Loans and Leases Charged-Off (3,617 ) (3,511 ) (2,865 ) (11,437 ) (10,119 )
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial 72 103 45 225 465
Consumer
Residential Mortgage 69 58 156 188 1,130
Home Equity 131 578 367 893 1,298
Automobile 721 777 441 2,170 1,864
Other 1 575 618 709 1,867 2,098
Total Recoveries on Loans and Leases Previously Charged-Off 1,568 2,134 1,718 5,343 6,855
Net Charged-Off - Loans and Leases (2,049 ) (1,377 ) (1,147 ) (6,094 ) (3,264 )
Net Charged-Off - Accrued Interest Receivable - - - - (47 )
Provision for Credit Losses:
Loans and Leases 1,945 3,167 (929 ) 6,918 (8,121 )
Accrued Interest Receivable - - - - (367 )
Unfunded Commitments 55 (667 ) 905 (418 ) 429
Total Provision for Credit Losses 2,000 2,500 (24 ) 6,500 (8,059 )
Balance at End of Period $ 151,653 $ 151,702 $ 152,927 $ 151,653 $ 152,927
Components
Allowance for Credit Losses - Loans and Leases $ 145,263 $ 145,367 $ 146,436 $ 145,263 $ 146,436
Reserve for Unfunded Commitments 6,390 6,335 6,491 6,390 6,491
Total Reserve for Credit Losses $ 151,653 $ 151,702 $ 152,927 $ 151,653 $ 152,927
Average Loans and Leases Outstanding $ 13,903,214 $ 13,876,754 $ 13,126,717 $ 13,833,164 $ 12,709,045
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized) 0.06 % 0.04 % 0.03 % 0.06 % 0.03 %
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 2 1.04 % 1.04 % 1.10 % 1.04 % 1.10 %
1  Comprised of other revolving credit, installment, and lease financing.
2  The numerator comprises the Allowance for Credit Losses - Loans and Leases.
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- ---
Business Segments Selected Financial Information Table 13a
Consumer Commercial Treasury Consolidated
(dollars in thousands) Banking Banking and Other Total
Three Months Ended September 30, 2023
Net Interest Income (Loss) $ 100,913 $ 53,823 $ (33,799 ) $ 120,937
Provision for Credit Losses 1,974 74 (48 ) 2,000
Net Interest Income (Loss) After Provision for Credit Losses 98,939 53,749 (33,751 ) 118,937
Noninterest Income 31,027 8,483 10,824 50,334
Noninterest Expense (81,377 ) (18,937 ) (5,287 ) (105,601 )
Income (Loss) Before Income Taxes 48,589 43,295 (28,214 ) 63,670
Provision for Income Taxes (12,582 ) (10,987 ) 7,802 (15,767 )
Net Income (Loss) $ 36,007 $ 32,308 $ (20,412 ) $ 47,903
Total Assets as of September 30, 2023 $ 8,584,221 $ 5,719,577 $ 9,245,987 $ 23,549,785
Three Months September 30, 2022 1
Net Interest Income (Loss) $ 85,658 $ 56,251 $ (254 ) $ 141,655
Provision for Credit Losses 1,148 (1 ) (1,147 ) -
Net Interest Income After Provision for Credit Losses 84,510 56,252 893 141,655
Noninterest Income (Loss) 30,974 (911 ) 597 30,660
Noninterest Expense (83,408 ) (17,330 ) (5,011 ) (105,749 )
Income (Loss) Before Income Taxes 32,076 38,011 (3,521 ) 66,566
Provision for Income Taxes (8,067 ) (9,206 ) 3,508 (13,765 )
Net Income (Loss) $ 24,009 $ 28,805 $ (13 ) $ 52,801
Total Assets as of September 30, 2022 $ 8,399,068 $ 5,486,330 $ 9,248,642 $ 23,134,040
1 Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- ---
Business Segments Selected Financial Information Table 13b
Consumer Commercial Treasury Consolidated
(dollars in thousands) Banking Banking and Other Total
Nine Months Ended September 30, 2023
Net Interest Income (Loss) $ 298,512 $ 164,202 $ (81,474 ) $ 381,240
Provision for Credit Losses 6,035 59 406 6,500
Net Interest Income (Loss) After Provision for Credit Losses 292,477 164,143 (81,880 ) 374,740
Noninterest Income 94,126 25,072 15,128 134,326
Noninterest Expense (247,543 ) (58,528 ) (15,485 ) (321,556 )
Income (Loss) Before Income Taxes 139,060 130,687 (82,237 ) 187,510
Provision for Income Taxes (35,838 ) (32,490 ) 21,624 (46,704 )
Net Income (Loss) $ 103,222 $ 98,197 $ (60,613 ) $ 140,806
Total Assets as of September 30, 2023 $ 8,584,221 $ 5,719,577 $ 9,245,987 $ 23,549,785
Nine Months Ended September 30, 2022 1
Net Interest Income $ 232,646 $ 152,394 $ 14,780 $ 399,820
Provision for Credit Losses 3,463 (200 ) (11,263 ) (8,000 )
Net Interest Income After Provision for Credit Losses 229,183 152,594 26,043 407,820
Noninterest Income 94,811 17,650 3,908 116,369
Noninterest Expense (247,854 ) (53,014 ) (11,694 ) (312,562 )
Income Before Income Taxes 76,140 117,230 18,257 211,627
Provision for Income Taxes (19,114 ) (28,654 ) 638 (47,130 )
Net Income $ 57,026 $ 88,576 $ 18,895 $ 164,497
Total Assets as of September 30, 2022 $ 8,399,068 $ 5,486,330 $ 9,248,642 $ 23,134,040
1 Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Selected Quarterly Financial Data Table 14
Three Months Ended
September 30, June 30, March 31, December 31, September 30,
(dollars in thousands, except per share amounts) 2023 2023 2023 2022 2022
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases $ 151,245 $ 144,541 $ 136,501 $ 128,683 $ 115,013
Income on Investment Securities
Trading
Available-for-Sale 23,552 23,301 23,893 18,476 16,995
Held-to-Maturity 22,838 23,375 23,948 23,708 20,243
Deposits 18 18 27 13 10
Funds Sold 12,828 6,395 3,366 1,093 2,335
Other 1,464 2,121 597 340 322
Total Interest Income 211,945 199,751 188,332 172,313 154,918
Interest Expense
Deposits 72,153 53,779 37,794 23,494 10,296
Securities Sold Under Agreements to Repurchase 4,034 5,436 5,377 4,289 2,745
Funds Purchased - 184 704 318 40
Short-Term Borrowings - 2,510 3,203 1,978 -
Other Debt 14,821 13,494 5,299 1,496 182
Total Interest Expense 91,008 75,403 52,377 31,575 13,263
Net Interest Income 120,937 124,348 135,955 140,738 141,655
Provision for Credit Losses 2,000 2,500 2,000 200 -
Net Interest Income After Provision for Credit Losses 118,937 121,848 133,955 140,538 141,655
Noninterest Income
Trust and Asset Management 10,548 11,215 10,690 10,652 10,418
Mortgage Banking 1,059 1,176 1,004 991 1,002
Service Charges on Deposit Accounts 7,843 7,587 7,737 7,513 7,526
Fees, Exchange, and Other Service Charges 13,824 14,150 13,808 13,906 13,863
Investment Securities Losses, Net (6,734 ) (1,310 ) (1,792 ) (1,124 ) (2,147 )
Annuity and Insurance 1,156 1,038 1,271 1,087 1,034
Bank-Owned Life Insurance 2,749 2,876 2,842 2,475 2,486
Other 19,889 6,523 5,177 5,672 (3,522 )
Total Noninterest Income 50,334 43,255 40,737 41,172 30,660
Noninterest Expense
Salaries and Benefits 58,825 56,175 65,088 57,639 59,938
Net Occupancy 10,327 9,991 9,872 9,499 10,186
Net Equipment 9,477 10,573 10,375 9,942 9,736
Data Processing 4,706 4,599 4,583 4,579 4,616
Professional Fees 3,846 4,651 3,883 3,958 3,799
FDIC Insurance 3,361 3,173 3,234 1,774 1,680
Other 15,059 14,874 14,884 15,312 15,794
Total Noninterest Expense 105,601 104,036 111,919 102,703 105,749
Income Before Provision for Income Taxes 63,670 61,067 62,773 79,007 66,566
Provision for Income Taxes 15,767 15,006 15,931 17,700 13,765
Net Income $ 47,903 $ 46,061 $ 46,842 $ 61,307 $ 52,801
Preferred Stock Dividends 1,969 1,969 1,969 1,969 1,969
Net Income Available to Common Shareholders $ 45,934 $ 44,092 $ 44,873 $ 59,338 $ 50,832
Basic Earnings Per Common Share $ 1.17 $ 1.12 $ 1.14 $ 1.51 $ 1.28
Diluted Earnings Per Common Share $ 1.17 $ 1.12 $ 1.14 $ 1.50 $ 1.28
Balance Sheet Totals
Loans and Leases $ 13,919,491 $ 13,914,889 $ 13,824,522 $ 13,646,420 $ 13,321,606
Total Assets 23,549,785 24,947,936 23,931,977 23,606,877 23,134,040
Total Deposits 20,802,309 20,508,615 20,491,300 20,615,696 20,888,773
Total Shareholders' Equity 1,363,840 1,358,279 1,354,430 1,316,995 1,282,384
Performance Ratios
Return on Average Assets 0.78 % 0.77 % 0.80 % 1.05 % 0.91 %
Return on Average Shareholders' Equity 13.92 13.55 14.25 18.91 15.31
Return on Average Common Equity 15.38 14.95 15.79 21.28 16.98
Efficiency Ratio 1 61.66 62.07 63.34 56.46 61.37
Net Interest Margin 2 2.13 2.22 2.47 2.60 2.60
1  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
2  Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Hawaii Economic Trends Table 15
Eight Months Ended Year Ended
(dollars in millions; jobs in thousands) August 31, 2023 December 31, 2022 December 31, 2021
Hawaii Economic Trends
State General Fund Revenues 1 $ 6,461.9 (3.5 ) % $ 9,441.3 16.0 % $ 8,137.9 26.9 %
General Excise and Use Tax Revenue 1 3,027.8 5.9 4,263.4 18.3 3,604.3 18.6
Jobs 2 657.3 654.5 642.6
September 30, December 31,
2023 2022 2021
Unemployment, seasonally adjusted 3
Statewide 2.8 % 3.7 % 3.2 %
Honolulu County 2.2 3.3 3.7
Hawaii County 2.2 4.7 1.8
Maui County 6.4 4.5 2.4
Kauai County 2.0 4.7 2.7
September 30, December 31,
(1-year percentage change, except months of inventory) 2023 2022 2021 2020
Housing Trends (Single Family Oahu) 4
Median Home Price (5.4 ) % 11.6 % 19.3 % 5.2 %
Home Sales Volume (units) (30.5 ) % (23.2 ) % 17.9 % 2.3 %
Months of Inventory 2.7 2.1 0.8 1.4
Monthly Visitor Arrivals, Percentage Change
(in thousands, except percent change) Not Seasonally Adjusted from Previous Year
Tourism 5
August 31, 2023 766.0 (7.7 ) %
July 31, 2023 929.4 1.2
June 30, 2023 886.0 5.3
May 31, 2023 790.5 2.1
April 30, 2023 806.2 (0.4 )
March 31, 2023 892.2 13.6
February 28, 2023 733.6 17.6
January 31, 2023 775.1 36.7
December 31, 2022 858.1 14.0
November 30, 2022 725.5 18.2
October 31, 2022 726.1 31.8
September 30, 2022 691.8 37.1
August 31, 2022 829.8 14.8
July 31, 2022 918.6 4.4
June 30, 2022 841.8 6.4
May 31, 2022 774.1 22.9
April 30, 2022 809.6 67.3
March 31, 2022 785.7 78.7
February 28, 2022 623.7 165.1
January 31, 2022 567.2 229.8
December 31,2021 752.8 219.3
November 30, 2021 614.0 234.1
October 31, 2021 550.8 618.2
September 30, 2021 504.6 2,641.0
August 31, 2021 723.0 2,995.6
1  Source: Hawaii Department of Business, Economic Development & Tourism
2  Source: U.S. Bureau of Labor Statistics
3  Source: University of Hawaii Economic Research Organization (UHERO)
4  Source: Honolulu Board of Realtors
5  Source: Hawaii Tourism Authority

Slide 1

Bank of Hawai‘i Corporation third quarter 2023 financial report October 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

diversified, lower risk loan assets highlights broad & deep market penetration quality balance sheet performance earnings highlights strong credit period end total deposits increased 1.4% average deposits increased 2.4% growth attributed to increase in core customer deposits wholesale funding decreased by $1.8 billion $1.17 earnings per diluted share 1.40% average cost of total deposits 15.38% return on average common equity 0.06% net charge-off rate 0.08% non-performing assets level 79% of loan portfolio real-estate secured with combined wtd avg LTV of 55% CRE portfolio comprises 27% of total loans wtd avg LTV of 55%; only 8% maturing prior to 2025; CRE office exposure only 3% of total loans $9.6 billion in readily available liquidity exceeds uninsured/uncollateralized deposits strong liquidity

Slide 4

our deposits through our 125 year history in the islands, Bank of Hawai‘i has developed an exceptionally seasoned deposit base, built one relationship at a time, over many years, and in neighborhoods and communities we understand unique marketplace diversified long tenured ✔ ✔ ✔

Slide 5

unique deposit market source: FDIC Annual Summary of Deposits as of June 30, 2023 the leader in a unique deposit market with five local competitors holding 97% of the bank deposit market

Slide 6

insured/collateralized deposits note: as of September 30, 2023

Slide 7

long tenured deposit base note: as of September 30, 2023

Slide 8

spot balance increased by 1.4% average balance increased by 2.4% stable deposit balances $ in billions

Slide 9

compares 9/27/23 vs. 12/28/22; small banks data derived from H.8 Assets and Liabilities of Commercial Banks in the United States, Table 9 - Assets and Liabilities of Small Domestically Charted Commercial Banks in the United States, not seasonally adjusted compares 9/30/23 vs. 12/31/22 (1) (2) 2023 deposit balances change

Slide 10

cost of funds interest-bearing deposits source: S&P Capital IQ; KBW Regional Banking Index (KRX) as of 1/3/23

Slide 11

cost of funds total deposits source: S&P Capital IQ; KBW Regional Banking Index (KRX) as of 1/3/23

Slide 12

deposit beta performance source: S&P Capital IQ; KBW Regional Banking Index (KRX) as of 1/3/23

Slide 13

note: as of September 30, 2023, FRB borrowing capacity includes Bank Term Funding Program margins, cash includes fed funds sold and cash and due from banks, and securities available includes unencumbered investment securities Bank of Hawai‘i carries substantial liquidity lines and equivalents for both day-to-day operational and liquidity backstop purposes readily available liquidity

Slide 14

unemployment experience & forecast source for Hawai‘i unemployment: University of Hawaii Economic Research Organization (UHERO), seasonally adjusted source for national unemployment: Bureau of Labor Statistics, seasonally adjusted 14

Slide 15

15 visitor arrivals monthly by market, indexed to January 2017 source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT) Aug-23

Slide 16

revenue per available room revenue per available room (RevPAR) source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT) Aug-23

Slide 17

single family homes condominiums   Sep 2023 Sep 2022 Sep 2019 Δ Sep 2022 Δ Sep 2019 Sep 2023 Sep 2022 Sep 2019 Δ Sep 2022 Δ Sep 2019 median sales price (000s) $1,050 $1,100 $777 -4.5% 35.1% $533 $503 $445 6.0% 19.7% months of inventory 2.7 1.9 3.5 0.8 months -0.8 months 3.0 2.0 3.9 1.0 months -0.9 months closed sales 232 278 347 -16.5% -33.1% 376 496 466 -24.2% -19.3% median days on market 20 18 29 2 days 9 day 21 14 27 7 days 6 days stable real estate prices Oahu market indicators – September 2023 source: Honolulu Board of Realtors, compiled from MLS data

Slide 18

credit performance

Slide 19

lending philosophy note: as of September 30, 2023 we lend in our core markets to long-standing relationships

Slide 20

de-risking the balance sheet core non-core consumer residential mortgage home equity auto other consumer residential mortgage – land, interest only home equity – purchased auto – Oregon, origination FICO < 680 personal flexline credit card commercial C&I commercial real estate construction leasing scored small business non-relationship SNC large ticket leasing

Slide 21

historical net charge-off rates lower net charge offs through different economic cycles KRX – represents historical average net charge-off rates for banks in the KBW Regional Banking index as of 1/3/23 (source: S&P Capital IQ) all banks – represents historical average net charge-off rates for all FDIC insured banks (source: FDIC)

Slide 22

loan portfolio 41% commercial 71% real estate secured wtd avg LTV 56% 56% w/ BOH ≥ 10 yrs avg bal $0.7MM CRE C&I residential mortgage home equity auto leasing other consumer construction 59% consumer 84% real estate secured wtd avg LTV 54% 58% w/ BOH ≥ 10 yrs avg bal $0.07MM 79% of portfolio secured with real estate with combined weighted average loan to value of 55% note: excludes $13MM in PPP loan balances including deferred costs and fees

Slide 23

commercial real estate (CRE) 27% of total loans $3.8B CRE asset type % total CRE wtd avg LTV multi-family 24% 59% industrial 20% 56% retail 18% 55% lodging 15% 52% office 10% 56% specialty 11% 53% other 2% 48% total CRE 100% 55%

Slide 24

CRE office 3% of total loans 56% wtd avg LTV $1.8MM average exposure 25% CBD (Downtown Honolulu) - 63% wtd avg LTV - 47% with repayment guaranties 2% maturing prior to 2025 highlights $0.38B

Slide 25

Oahu investor office market source: Colliers vacancy and rents remain stable as conversions to alternative purpose continue to drive decline in inventory 13.6 million square feet

Slide 26

Honolulu multi-family market source: CoStar 30,367 units severely limited existing and new supply, compounded by the high cost of homeownership, continues to drive rental demand

Slide 27

Oahu industrial market source: Colliers 41.5 million square feet vacancy rates at a historic low, while available industrial space listings remain near record low

Slide 28

Oahu retail market source: Colliers 17.1 million square feet record retail sales and tourism spend continue to support post-pandemic recovery

Slide 29

Oahu lodging market source: Hawaii Tourism Authority, UHERO outlook is generally positive, as inventory remains flat and occupancy & RevPar report comparably with pre-pandemic tourism 30.9 thousand rooms

Slide 30

CRE scheduled maturities 8% maturing prior to 2025

Slide 31

CRE tail risk $0.03B of CRE with LTV > 80% LTV > 80% - 0.8% of CRE, 0.2% of total loans

Slide 32

construction 2% of total loans $0.3B construction asset type % total construction wtd avg LTV housing – low income / affordable 46% 65% housing – other 5% 45% retail 21% 64% industrial 10% 67% lodging 13% 51% office 4% 69% specialty 1% 56% total construction 100% 62%

Slide 33

Maui economic impact 2021 percentage of state total by county source: University of Hawaii Economic Research Organization (UHERO)

Slide 34

Maui portfolio 12% of total loans, 1% of total loans located in fire impacted zone $1.6B total Maui * principally comprised of loans secured by real estate ** land value based on 50% 2023 land tax assessed value fire impacted zone not destroyed/ no loss estimated potential loss destroyed real estate covered by insurance & land** 50% of unsecured loans $millions destroyed real estate covered by insurance secured* unsecured fire impacted zone 10.5%

Slide 35

credit quality * 51% of total criticized in CRE with 57% wtd avg LTV

Slide 36

financial update

Slide 37

= NIM $ in millions NII and NIM net interest income (NII) and net interest margin (NIM) challenges from inverted yield curve and higher short term rates deposit rates and betas remain well below peers NIM declined by 9 basis points in 3Q23 compared to 2Q23

Slide 38

hedging program increased pay-fixed/receive-float swaps by $1.8 billion ($2.0 billion total notional) in 3Q23 to hedge a portion of fixed-rate asset exposure asset composition note: fixed excludes $1.8 billion of fixed-rate assets swapped to floating through the hedging program, fixed/float breakdown includes loans, investment portfolio (using par value), and fed funds sold, 9/30/23 pro forma includes $500.0 million of pay-fixed/receive-float swaps executed in October 2023, numbers may not add up due to rounding

Slide 39

asset repricing note: numbers may not add up due to rounding, loans repricing/swaps includes $1.0 billion of fixed-rate loans swapped to floating rate assets, inv. portfolio repricing/swaps and fed funds sold includes $1.0 billion of fixed-rate available-for-sale securities swapped to floating rate assets, matured/run-off yield for loans includes only fixed-rate loans; matured/run-off yield for investment portfolio excludes securities sold in 3Q23 matured/run-off yield $8.5B $8.7B reinvestment opportunity

Slide 40

balance sheet summary note: numbers may not add up due to rounding $ in millions

Slide 41

noninterest income $ in millions stable core noninterest income from diverse sources normalizing items: +$0.9 Visa Class B conversion ratio adjustment +$6.9 terminated leveraged leases normalizing items: -$1.5 sale of a low-income housing tax credit investment normalizing items: +$0.8 Visa Class B conversion ratio adjustment +$4.6 net loss on securities sales -$14.7 gain on early termination of private repurchase agreements note: numbers may not add up due to rounding

Slide 42

noninterest expense $ in millions disciplined expense management in challenging operating environment normalizing items: -$1.8 separation normalizing items: -$2.1 separation -$0.4 extraordinary expenses related to Maui wildfires note: numbers may not add up due to rounding

Slide 43

financial summary $ in millions, except per share amounts note: numbers may not add up due to rounding 3Q 2023 2Q 2023 3Q 2022 ∆ 2Q 2023 ∆ 3Q 2022 net interest income $ 120.9 $ 124.3 $ 141.7 $ (3.4) $ (20.7) noninterest income 50.3   43.3   30.7   7.1   19.7   total revenue 171.3 167.6 172.3 3.7 (1.0) noninterest expense 105.6   104.0   105.7   1.6   (0.1)   operating income 65.7   63.6   66.6 2.1 (0.9) credit provision 2.0 2.5 - (0.5) 2.0 income taxes 15.8 15.0 13.8 0.8 2.0 net income $ 47.9   $ 46.1   $ 52.8   $ 1.8   $ (4.9)   net income available to common $ 45.9   $ 44.1   50.8   $ 1.8   $ (4.9)   diluted EPS $ 1.17   $ 1.12   $ 1.28   $ 0.05   $ (0.11)   return on assets 0.78 % 0.77 % 0.91 % 0.01 % (0.13) % return on common equity 15.38 14.95 16.98 0.43 (1.60) net interest margin 2.13 2.22 2.60 (0.09) (0.47) efficiency ratio 61.66 62.07 61.37 (0.41) 0.29 end of period balance shareholders' equity $ 1,364 $ 1,358 $ 1,282 0.4 % 6.4 %

Slide 44

capital note: 3Q23 regulatory capital ratios are preliminary 13.6% organic capital continues to grow

Slide 45

unique and competitively advantageous deposit market high quality deposit base market leading cost of deposits high quality assets exceptional credit quality strong risk-based capital takeaways

Slide 46

Q & A

Slide 47

appendix

Slide 48

Hawai‘i economy $ in billions source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT)

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