Equibles

8-K

BANK OF HAWAII CORP (BOH)

8-K 2020-04-20 For: 2020-04-20
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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 April 20, 2020
(Date of earliest event reported)

BANK OF HAWAII CORP

(Exact name of registrant as specified in its charter)

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

(888) 643-3888

(Registrant's telephone number, including area code)

N/A

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

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

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

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

☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

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

Emerging growth company   ☐

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

Item 2.02.                                       Results of Operations and Financial Condition.

On April 20, 2020, Bank of Hawaii Corporation announced its results of operations for the quarter ended March 31, 2020.  The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and incorporated herein by reference.

Item 9.01.                                       Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.

99.1 April 20, 2020 Press Release: Bank of Hawaii Corporation First Quarter 2020 Financial Results.  Any internet addresses provided in this release are for informational purposes only and are not intended to be hyperlinks.  Furnished herewith.

99.2 Bank of Hawaii Corporation COVID-19 Supplement

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: April 20, 2020 Bank of Hawaii Corporation
By: /s/ Mark A. Rossi
Mark A. Rossi
Vice Chairman and Corporate Secretary

Document

Bank of Hawaii Corporation First Quarter 2020 Financial Results

•Diluted Earnings Per Share $0.87

•Net Income $34.7 Million

•Company Adopts CECL and Records $33.6 Million Provision

•Board of Directors Declares Dividend of $0.67 Per Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (April 20, 2020) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.87 for the first quarter of 2020, a decrease from diluted earnings per share of $1.45 in the previous quarter and $1.43 in the same quarter last year. Net income for the first quarter of 2020 was $34.7 million compared with net income of $58.1 million in the fourth quarter of 2019 and $58.8 million in the first quarter of 2019. The decrease from the previous quarter is the result of an increased provision expense of $33.6 million compared with $4.8 million in the previous quarter and $3.0 million in the first quarter last year. The increase in the provision was related to changes in economic conditions driven by the impact of COVID-19 and considered the effect of significantly slower economic growth and higher unemployment in Hawaii partially offset by the benefits of government stimulus programs.

"We were pleased with our overall financial performance during the first quarter of 2020 despite the challenges related to COVID-19," said Peter S. Ho, Chairman, President, and CEO. “Our strong balance sheet includes a high-quality securities portfolio, good asset quality, high levels of liquidity, and a solid capital base that will allow us to provide the financial support to our customers and community needed to emerge from the COVID-19 crisis.”

The return on average assets for the first quarter of 2020 was 0.77 percent compared with 1.29 percent during the previous quarter and 1.38 percent in the same quarter last year. The return on average equity for the first quarter of 2020 was 10.64 percent compared with 17.84 percent in the fourth quarter of 2019 and 18.81 percent in the first quarter of 2019.

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Bank of Hawaii Corporation First Quarter 2020 Financial Results      Page 2

Financial Highlights

Net interest income, on a taxable-equivalent basis, for the first quarter of 2020 was $126.3 million, an increase of $2.1 million from $124.2 million in the fourth quarter of 2019 and up $0.5 million from $125.8 million in the first quarter of 2019. The net interest margin was 2.96 percent for the first quarter of 2020, up 1 basis point compared with 2.95 percent in the previous quarter and down 16 basis points from 3.12 percent in the first quarter last year. Analyses of the changes in net interest income are included in Tables 8a and 8b.

Results for the first quarter of 2020 included a provision for credit losses of $33.6 million. The provision under CECL is reflective of the Company’s credit risk profile and the future economic outlook and forecasts. Upon adoption of CECL, the Company recorded a $1.7 million decrease to the allowance for loan and lease losses on January 1, 2020 that reflected a generally stable asset quality and economic outlook. At that time, the COVID-19 pandemic was not yet estimated to have the significant impact that ultimately transpired in the latter half of the current quarter.

Noninterest income was $46.1 million in the first quarter of 2020, a decrease of $1.6 million compared with $47.7 million in the fourth quarter of 2019 and an increase of $2.4 million compared with $43.7 million in the first quarter of 2019. There were no significant items in noninterest income during the first quarter of 2020. Noninterest income in the fourth quarter of 2019 included a gain of $3.8 million related to the early buyout of a leveraged lease. Noninterest income in the first quarter of 2019 included a $1.4 million commission related to insurance products offered through a third-party administrator. Adjusted for significant items, the increase in noninterest income compared with the fourth quarter of 2019 and the first quarter last year was largely due to significant growth in customer derivative activity.

Noninterest expense was $96.3 million in the first quarter of 2020, an increase of $3.2 million compared with $93.1 million in the fourth quarter of 2019 and an increase of $3.2 million from $93.1 million in the same quarter last year. Noninterest expense in the first quarter of 2020 included seasonal payroll expenses of approximately $3.1 million and severance expenses of $4.7 million that were partially offset by the elimination of corporate incentive accruals. There were no significant items in noninterest expense during the fourth quarter of 2019. Noninterest expense in the first quarter of 2019 included seasonal payroll expenses of approximately $2.7 million. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The efficiency ratio during the first quarter of 2020 was 55.96 percent compared with 54.26 percent in the previous quarter and 55.22 percent in the same quarter last year.

The effective tax rate for the first quarter of 2020 was 17.68 percent compared with 21.15 percent in the previous quarter and 18.85 percent during the same quarter last year. There were no significant items impacting the tax rate during the first quarter of 2020 or the fourth quarter of 2019. The first quarter of 2019 included tax benefits of $1.9 million related to a commercial customer’s exercise of an early-buy-out option on a leveraged lease.

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

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Bank of Hawaii Corporation First Quarter 2020 Financial Results      Page 3

Asset Quality

The Company’s asset quality remained stable during the first quarter of 2020. Total non-performing assets were $20.6 million at March 31, 2020, compared with $20.1 million at December 31, 2019 and $17.9 million at March 31, 2019. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.18 percent at the end of the first quarter of 2020, compared with 0.18 percent at the end of the fourth quarter of 2019 and 0.17 percent at the end of the first quarter last year.

Accruing loans and leases past due 90 days or more were $8.5 million at March 31, 2020, compared with $8.4 million at December 31, 2019 and $6.1 million at March 31, 2019. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $61.4 million at March 31, 2019 compared with $63.1 million at December 31, 2019 and $48.6 million at March 31, 2019. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loans and leases charged off during the first quarter of 2020 were $3.7 million or 0.14 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $7.2 million during the quarter were partially offset by recoveries of $3.4 million. Net charge-offs during the fourth quarter of 2019 were $3.7 million or 0.13 percent annualized of total average loans and leases outstanding and were comprised of $6.2 million in charge-offs partially offset by recoveries of $2.6 million. Net charge-offs during the first quarter of 2019 were $3.7 million or 0.14 percent annualized of total average loans and leases outstanding and were comprised of $6.8 million in charge-offs partially offset by recoveries of $3.2 million.

The allowance for credit losses was $138.2 million at March 31, 2020, an increase from $110.0 million at December 31, 2019 and $106.0 million at March 31, 2019. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.22 percent at March 31, 2020 compared with 1.00 percent at December 31, 2019 and 1.01 percent at March 31, 2019. The reserve for unfunded commitments was $3.3 million at March 31, 2020 compared with $6.8 million at December 31, 2019 and at March 31, 2019. Details of loan and lease charge-offs, recoveries, and components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets increased to $18.54 billion at March 31, 2020 compared with $18.10 billion at December 31, 2019 and $17.45 billion at March 31, 2019. Average total assets were $18.22 billion during the first quarter of 2020, an increase from $17.82 billion during the fourth quarter of 2019 and $17.24 billion in the first quarter of 2019.

The investment securities portfolio was $5.69 billion at March 31, 2020 compared with $5.66 billion at December 31, 2019 and $5.53 billion at March 31, 2019. The portfolio at March 31, 2020 remains largely comprised of securities issued by U.S. government agencies and includes $3.00 billion in securities held to maturity and $2.68 billion in securities available for sale.

Total loans and leases were $11.35 billion at March 31, 2020, an increase of 3.3 percent from $10.99 billion at December 31, 2019 and up 7.6 percent from $10.55 billion at March 31, 2019. Average total loans were $11.06 billion during the first quarter of 2020, an increase from $10.88 billion during the fourth quarter of 2019 and $10.47 billion in the first quarter of 2019.

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Bank of Hawaii Corporation First Quarter 2020 Financial Results       Page 4

The commercial portfolio grew to $4.53 billion at the end of the first quarter of 2020, an increase of 7.5 percent from $4.21 billion at the end of the fourth quarter of 2019 and up 13.3 percent from $4.00 billion at the end of the first quarter last year. Consumer loans grew to $6.82 billion at March 31, 2020, an increase of 0.7 percent from $6.78 billion at the end of the fourth quarter of 2019 and up 4.2 percent from consumer loans of $6.55 billion at the end of the first quarter last year.

Total deposits were $16.06 billion at March 31, 2020, an increase of 1.7 percent from $15.78 billion at December 31, 2019 and up 5.2 percent from total deposits of $15.27 billion at March 31, 2019. Average total deposits were $15.82 billion during the first quarter of 2020, an increase from $15.44 billion during the fourth quarter of 2019 and $14.97 billion in the first quarter of 2019.

Consumer deposits increased to $8.29 billion at March 31, 2020, an increase of 2.2 percent from $8.12 billion at the end of the fourth quarter of 2019 and up 4.4 percent from $7.94 billion at the end of the first quarter last year. Commercial deposits increased to $6.36 billion at the end of the first quarter of 2020, an increase of 0.5 percent from $6.32 billion at the end of the fourth quarter of 2019 and up 3.2 percent from $6.16 billion at the end of the first quarter last year. Other deposits, including public funds, were $1.40 billion at March 31, 2020, an increase of 4.5 percent from $1.34 billion at December 31, 2019 and up 20.8 percent from $1.16 billion at March 31, 2019. Deposit balances are summarized in Tables 7 and 10.

Total shareholders’ equity was $1.33 billion at March 31, 2020, up from $1.29 billion at December 31, 2019 and up from $1.27 billion at March 31, 2019. The Tier 1 Capital Ratio was 11.85 percent at March 31, 2020 compared with 12.18 percent at December 31, 2019 and 12.75 percent at March 31, 2019. The Tier 1 Leverage Ratio at March 31, 2020 was 7.14 percent compared with 7.25 percent at December 31, 2019 and 7.46 percent at March 31, 2019.

During the first quarter of 2020, the Company repurchased 156.4 thousand shares of common stock at a total cost of $14.0 million under its share repurchase program. The average cost was $89.32 per share repurchased. Due to the uncertainty related to the COVID-19 pandemic, the Company temporarily suspended the share repurchase program on March 17, 2020. From the beginning of the share repurchase program initiated during July 2001 through March 16, 2020, the Company has repurchased 57.1 million shares and returned over $2.3 billion to shareholders at an average cost of $40.51 per share. Remaining buyback authority under the share repurchase program was $113.1 million at March 31, 2020.

The Company’s Board of Directors declared a quarterly cash dividend of $0.67 per share on the Company’s outstanding shares. The dividend will be payable on June 12, 2020 to shareholders of record at the close of business on May 29, 2020.

Conference Call Information

The Company will review its first quarter financial results today at 2:00 p.m. Eastern Daylight Time (8:00 a.m. Hawaii Time). The conference call will be accessible via teleconference and the call and presentation materials will be available via the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. TThe toll-free number is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, April 20, 2020. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the conference ID 4256888 when prompted. In addition, a replay will be available on the Company's website, www.boh.com.

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Bank of Hawaii Corporation First Quarter 2020 Financial Results       Page 5

Forward-Looking Statements

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

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

# #

Bank of Hawaii Corporation and Subsidiaries
Financial Highlights Table 1
Three Months Ended
March 31, December 31, March 31,
(dollars in thousands, except per share amounts) 2020 2019 2019
For the Period:
Operating Results
Net Interest Income $ 125,966 $ 123,885 $ 124,837
Provision for Credit Losses 33,600 4,750 3,000
Total Noninterest Income 46,149 47,702 43,679
Total Noninterest Expense 96,312 93,096 93,057
Net Income 34,742 58,143 58,799
Basic Earnings Per Share 0.88 1.46 1.44
Diluted Earnings Per Share 0.87 1.45 1.43
Dividends Declared Per Share 0.67 0.67 0.62
Performance Ratios
Return on Average Assets 0.77 % 1.29 % 1.38 %
Return on Average Shareholders' Equity 10.64 17.84 18.81
Efficiency Ratio ^1^ 55.96 54.26 55.22
Net Interest Margin ^2^ 2.96 2.95 3.12
Dividend Payout Ratio^3^ 76.14 45.89 43.06
Average Shareholders' Equity to Average Assets 7.21 7.26 7.35
Average Balances
Average Loans and Leases $ 11,060,707 $ 10,878,672 $ 10,467,321
Average Assets 18,222,602 17,821,004 17,236,059
Average Deposits 15,817,745 15,441,097 14,971,404
Average Shareholders' Equity 1,313,848 1,292,930 1,267,438
Per Share of Common Stock
Book Value $ 33.20 $ 32.14 $ 30.91
Tangible Book Value 32.41 31.35 30.14
Market Value
Closing 54.91 95.16 78.87
High 95.53 95.68 83.94
Low 46.70 81.29 66.54
March 31, December 31, March 31,
2020 2019 2019
As of Period End:
Balance Sheet Totals
Loans and Leases $ 11,352,780 $ 10,990,892 $ 10,548,609
Total Assets 18,542,233 18,095,496 17,446,413
Total Deposits 16,055,361 15,784,482 15,267,310
Other Debt 60,545 85,565 110,624
Total Shareholders' Equity 1,327,929 1,286,832 1,269,690
Asset Quality
Non-Performing Assets $ 20,604 $ 20,117 $ 17,925
Allowance for Credit Losses 138,150 110,027 106,023
Allowance to Loans and Leases Outstanding 1.22 % 1.00 % 1.01 %
Capital Ratios ^4^
Common Equity Tier 1 Capital Ratio 11.85 % 12.18 % 12.75 %
Tier 1 Capital Ratio 11.85 12.18 12.75
Total Capital Ratio 13.10 13.28 13.87
Tier 1 Leverage Ratio 7.14 7.25 7.46
Total Shareholders' Equity to Total Assets 7.16 7.11 7.28
Tangible Common Equity to Tangible Assets ^5^ 7.00 6.95 7.11
Tangible Common Equity to Risk-Weighted Assets^5^ 11.85 11.85 12.28
Non-Financial Data
Full-Time Equivalent Employees 2,094 2,124 2,112
Branches 67 68 69
ATMs 382 387 385
^1^ Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
^2^Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
^3^ Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.
^4^ The Company has elected to apply the modified transition provision related to the impact of the CECL accounting standard on regulatory capital, as provided by the US banking agencies’ March 2020 interim final rule.
^5^ Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 “Reconciliation of Non-GAAP Financial Measures."
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Reconciliation of Non-GAAP Financial Measures Table 2
March 31, December 31, March 31,
(dollars in thousands) 2020 2019 2019
Total Shareholders' Equity $ 1,327,929 $ 1,286,832 $ 1,269,690
Less: Goodwill 31,517 31,517 31,517
Tangible Common Equity $ 1,296,412 $ 1,255,315 $ 1,238,173
Total Assets $ 18,542,233 $ 18,095,496 $ 17,446,413
Less: Goodwill 31,517 31,517 31,517
Tangible Assets $ 18,510,716 $ 18,063,979 $ 17,414,896
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements $ 10,941,909 $ 10,589,061 $ 10,079,858
Total Shareholders' Equity to Total Assets 7.16 % 7.11 % 7.28 %
Tangible Common Equity to Tangible Assets (Non-GAAP) 7.00 % 6.95 % 7.11 %
Tier 1 Capital Ratio 11.85 % 12.18 % 12.75 %
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 11.85 % 11.85 % 12.28 %
Bank of Hawaii Corporation and Subsidiaries
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Consolidated Statements of Income Table 3
Three Months Ended
March 31, December 31, March 31,
(dollars in thousands, except per share amounts) 2020 2019 2019
Interest Income
Interest and Fees on Loans and Leases $ 108,210 $ 109,223 $ 108,511
Income on Investment Securities
Available-for-Sale 16,711 16,158 13,432
Held-to-Maturity 19,252 18,750 21,921
Deposits 9 8 15
Funds Sold 546 723 1,444
Other 218 239 319
Total Interest Income 144,946 145,101 145,642
Interest Expense
Deposits 14,260 16,407 15,284
Securities Sold Under Agreements to Repurchase 4,025 4,071 4,571
Funds Purchased 72 25 157
Short-Term Borrowings 39 — 36
Other Debt 584 713 757
Total Interest Expense 18,980 21,216 20,805
Net Interest Income 125,966 123,885 124,837
Provision for Credit Losses 33,600 4,750 3,000
Net Interest Income After Provision for Credit Losses 92,366 119,135 121,837
Noninterest Income
Trust and Asset Management 10,915 11,157 10,761
Mortgage Banking 2,695 3,199 2,287
Service Charges on Deposit Accounts 7,451 7,835 7,364
Fees, Exchange, and Other Service Charges 13,200 14,533 14,208
Investment Securities Gains (Losses), Net (970) (906) (835)
Annuity and Insurance 928 1,272 2,578
Bank-Owned Life Insurance 1,580 1,879 1,710
Other 10,350 8,733 5,606
Total Noninterest Income 46,149 47,702 43,679
Noninterest Expense
Salaries and Benefits 54,463 51,664 56,586
Net Occupancy 8,955 8,824 7,594
Net Equipment 8,456 7,930 6,833
Data Processing 4,788 4,828 4,526
Professional Fees 3,208 3,257 2,453
FDIC Insurance 1,456 1,376 1,269
Other 14,986 15,217 13,796
Total Noninterest Expense 96,312 93,096 93,057
Income Before Provision for Income Taxes 42,203 73,741 72,459
Provision for Income Taxes 7,461 15,598 13,660
Net Income $ 34,742 $ 58,143 $ 58,799
Basic Earnings Per Share $ 0.88 $ 1.46 $ 1.44
Diluted Earnings Per Share $ 0.87 $ 1.45 $ 1.43
Dividends Declared Per Share $ 0.67 $ 0.67 $ 0.62
Basic Weighted Average Shares 39,681,611 39,880,619 40,938,318
Diluted Weighted Average Shares 39,916,986 40,179,016 41,213,453
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- ---
Consolidated Statements of Comprehensive Income Table 4
Three Months Ended
March 31, December 31, March 31,
(dollars in thousands) 2020 2019 2019
Net Income $ 34,742 $ 58,143 $ 58,799
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities 41,559 (5,856) 6,919
Defined Benefit Plans 374 (3,482) 246
Other Comprehensive Income (Loss) 41,933 (9,338) 7,165
Comprehensive Income $ 76,675 $ 48,805 $ 65,964
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- ---
Consolidated Statements of Condition Table 5
December 31, March 31,
(dollars in thousands) 2019 2019
Assets
Interest-Bearing Deposits in Other Banks 6,346 $ 4,979 $ 3,550
Funds Sold 254,574 243,867
Investment Securities
Available-for-Sale 2,619,003 1,859,256
Held-to-Maturity (Fair Value of 3,104,020; 3,062,882; and 3,637,496) 3,042,294 3,668,811
Loans Held for Sale 39,062 17,909
Loans and Leases 10,990,892 10,548,609
Allowance for Credit Losses (110,027) (106,023)
Net Loans and Leases 10,880,865 10,442,586
Total Earning Assets 16,840,777 16,235,979
Cash and Due from Banks 299,105 293,871
Premises and Equipment, Net 188,388 159,344
Operating Lease Right-of-Use Assets 100,838 104,166
Accrued Interest Receivable 46,476 52,820
Foreclosed Real Estate 2,737 3,225
Mortgage Servicing Rights 25,022 24,149
Goodwill 31,517 31,517
Bank-Owned Life Insurance 287,962 285,155
Other Assets 272,674 256,187
Total Assets 18,542,233 $ 18,095,496 $ 17,446,413
Liabilities
Deposits
Noninterest-Bearing Demand 4,378,918 $ 4,489,525 $ 4,595,915
Interest-Bearing Demand 3,127,205 2,961,444
Savings 6,365,321 5,946,881
Time 1,802,431 1,763,070
Total Deposits 15,784,482 15,267,310
Funds Purchased — —
Short-Term Borrowings — —
Securities Sold Under Agreements to Repurchase 604,306 504,299
Other Debt 85,565 110,624
Operating Lease Liabilities 108,210 111,230
Retirement Benefits Payable 44,504 40,343
Accrued Interest Payable 8,040 8,474
Taxes Payable and Deferred Taxes 16,085 29,935
Other Liabilities 157,472 104,508
Total Liabilities 16,808,664 16,176,723
Shareholders' Equity
Common Stock (.01 par value; authorized 500,000,000 shares;
issued / outstanding: March 31, 2020 - 58,251,725 / 39,996,510;
December 31, 2019 - 58,166,910 / 40,039,695;
and March 31, 2019 - 58,166,535 / 41,078,688) 579 578
Capital Surplus 582,566 574,594
Accumulated Other Comprehensive Loss (31,112) (43,878)
Retained Earnings 1,761,415 1,674,264
Treasury Stock, at Cost (Shares: March 31, 2020 - 18,255,215;
December 31, 2019 - 18,127,215; and March 31, 2019 - 17,087,847) (1,026,616) (935,868)
Total Shareholders' Equity 1,286,832 1,269,690
Total Liabilities and Shareholders' Equity 18,542,233 $ 18,095,496 $ 17,446,413

All values are in US Dollars.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity Table 6
Accum.
Other
Compre-
hensive
Common Shares Common Capital Income Retained Treasury
(dollars in thousands) Outstanding Stock Surplus (Loss) Earnings Stock Total
Balance as of December 31, 2019 40,039,695 $ 579 $ 582,566 $ (31,112) $ 1,761,415 $ (1,026,616) $ 1,286,832
Net Income — — — — 34,742 — 34,742
Other Comprehensive Income — — — 41,933 — — 41,933
Cumulative Change in Accounting Principle — — — — 3,632 — 3,632
Share-Based Compensation — — 1,497 — — — 1,497
Common Stock Issued under Purchase and Equity
154,091 — 329 — 653 2,779 3,761
Common Stock Repurchased (197,276) — — — — (17,633) (17,633)
Cash Dividends Declared (0.67 per share) — — — — (26,835) — (26,835)
Balance as of March 31, 2020 39,996,510 $ 579 $ 584,392 $ 10,821 $ 1,773,607 $ (1,041,470) $ 1,327,929
Balance as of December 31, 2018 41,499,898 $ 577 $ 571,704 $ (51,043) $ 1,641,314 $ (894,352) $ 1,268,200
Net Income — — — — 58,799 — 58,799
Other Comprehensive Income — — — 7,165 — — 7,165
Share-Based Compensation — — 2,274 — — — 2,274
Common Stock Issued under Purchase and Equity
131,529 1 616 — (203) 1,673 2,087
Common Stock Repurchased (552,739) — — — — (43,189) (43,189)
Cash Dividends Declared (0.62 per share) — — — — (25,646) — (25,646)
Balance as of March 31, 2019 41,078,688 $ 578 $ 574,594 $ (43,878) $ 1,674,264 $ (935,868) $ 1,269,690

All values are in US Dollars.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis Table 7
Three Months Ended Three Months Ended Three Months Ended
March 31, 2020 December 31, 2019 March 31, 2019
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
(dollars in millions) Balance Expense Rate Balance Expense Rate Balance Expense Rate
Earning Assets
Interest-Bearing Deposits in Other Banks $ 1.4 $ — 2.36 % $ 3.4 $ — 0.90 % $ 3.0 $ — 2.05 %
Funds Sold 152.8 0.6 1.41 177.7 0.7 1.59 241.6 1.5 2.39
Investment Securities
2,702.4 16.4 2.43 2,578.3 15.9 2.46 1,595.8 11.5 2.90
32.4 0.4 4.40 33.4 0.4 4.35 279.1 2.4 3.45
3,036.2 18.9 2.50 2,994.7 18.4 2.46 3,373.5 20.5 2.43
54.7 0.4 2.67 61.7 0.4 2.70 234.1 1.8 3.15
Total Investment Securities 5,825.7 36.1 2.48 5,668.1 35.1 2.47 5,482.5 36.2 2.65
Loans Held for Sale 23.2 0.2 3.54 31.0 0.3 3.67 12.4 0.1 4.35
Loans and Leases 1
1,409.3 13.2 3.77 1,356.1 13.3 3.90 1,357.8 15.3 4.57
2,549.4 25.1 3.96 2,479.7 25.5 4.08 2,310.4 24.9 4.36
213.2 2.5 4.65 179.1 2.1 4.73 150.4 1.9 5.08
111.4 0.5 1.95 135.4 0.8 2.38 160.9 0.9 2.28
3,895.4 36.9 3.79 3,850.4 36.7 3.81 3,680.2 35.5 3.86
1,680.2 15.2 3.64 1,683.4 15.7 3.70 1,690.0 16.1 3.87
721.0 6.4 3.56 715.2 6.5 3.59 668.2 6.0 3.66
480.8 8.4 7.06 479.4 8.5 7.02 449.4 7.9 7.13
Total Loans and Leases 11,060.7 108.2 3.93 10,878.7 109.1 3.99 10,467.3 108.5 4.18
Other 34.3 0.2 2.54 34.9 0.2 2.74 35.5 0.3 3.60
Total Earning Assets 3 17,098.1 145.3 3.41 16,793.8 145.4 3.45 16,242.3 146.6 3.64
Cash and Due from Banks 278.8 222.2 240.8
Other Assets 845.7 805.0 753.0
Total Assets $ 18,222.6 $ 17,821.0 $ 17,236.1
Interest-Bearing Liabilities
Interest-Bearing Deposits
$ 3,110.0 1.0 0.12 $ 2,990.3 1.0 0.14 $ 2,939.9 1.5 0.20
6,502.4 7.1 0.44 6,245.0 8.0 0.51 5,760.8 6.7 0.47
1,743.0 6.2 1.43 1,842.3 7.4 1.59 1,703.4 7.1 1.69
Total Interest-Bearing Deposits 11,355.4 14.3 0.51 11,077.6 16.4 0.59 10,404.1 15.3 0.60
Short-Term Borrowings 57.8 0.1 0.76 5.8 — 1.66 31.1 0.2 2.49
Securities Sold Under Agreements to Repurchase 604.1 4.0 2.64 604.3 4.1 2.64 504.3 4.6 3.63
Other Debt 66.9 0.6 3.51 106.2 0.7 2.67 120.0 0.7 2.55
Total Interest-Bearing Liabilities 12,084.2 19.0 0.63 11,793.9 21.2 0.71 11,059.5 20.8 0.76
Net Interest Income $ 126.3 $ 124.2 $ 125.8
2.78 % 2.74 % 2.88 %
2.96 % 2.95 % 3.12 %
Noninterest-Bearing Demand Deposits 4,462.3 4,363.5 4,567.3
Other Liabilities 362.3 370.7 341.9
Shareholders' Equity 1,313.8 1,292.9 1,267.4
Total Liabilities and Shareholders' Equity $ 18,222.6 $ 17,821.0 $ 17,236.1
1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of 357,000, 352,000, and 981,000

All values are in US Dollars.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8a
Three Months Ended March 31, 2020
Compared to December 31, 2019
(dollars in millions) Volume ^1^ Rate ^1^ Total
Change in Interest Income:
Funds Sold $ (0.1) $ — $ (0.1)
Investment Securities
Available-for-Sale
Taxable 0.7 (0.2) 0.5
Held-to-Maturity
Taxable 0.2 0.3 0.5
Total Investment Securities 0.9 0.1 1.0
Loans Held for Sale (0.1) — (0.1)
Loans and Leases
Commercial and Industrial 0.4 (0.5) (0.1)
Commercial Mortgage 0.5 (0.9) (0.4)
Construction 0.4 — 0.4
Commercial Lease Financing (0.1) (0.2) (0.3)
Residential Mortgage 0.5 (0.3) 0.2
Home Equity (0.1) (0.4) (0.5)
Automobile — (0.1) (0.1)
Other ^2^ — (0.1) (0.1)
Total Loans and Leases 1.6 (2.5) (0.9)
Total Change in Interest Income 2.3 (2.4) (0.1)
Change in Interest Expense:
Interest-Bearing Deposits
Demand 0.1 (0.1) —
Savings 0.3 (1.2) (0.9)
Time (0.4) (0.8) (1.2)
Total Interest-Bearing Deposits — (2.1) (2.1)
Short-Term Borrowings 0.1 — 0.1
Securities Sold Under Agreements to Repurchase (0.1) — (0.1)
Other Debt (0.3) 0.2 (0.1)
Total Change in Interest Expense (0.3) (1.9) (2.2)
Change in Net Interest Income $ 2.6 $ (0.5) $ 2.1
^1^The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
^2^ Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- ---
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8b
Three Months Ended March 31, 2020
Compared to March 31, 2019
(dollars in millions) Volume ^1^ Rate ^1^ Total
Change in Interest Income:
Funds Sold $ (0.4) $ (0.5) $ (0.9)
Investment Securities
Available-for-Sale
Taxable 7.0 (2.1) 4.9
Non-Taxable (2.5) 0.5 (2.0)
Held-to-Maturity
Taxable (2.2) 0.6 (1.6)
Non-Taxable (1.2) (0.2) (1.4)
Total Investment Securities 1.1 (1.2) (0.1)
Loans Held for Sale 0.1 — 0.1
Loans and Leases
Commercial and Industrial 0.6 (2.7) (2.1)
Commercial Mortgage 2.5 (2.3) 0.2
Construction 0.8 (0.2) 0.6
Commercial Lease Financing (0.3) (0.1) (0.4)
Residential Mortgage 2.1 (0.7) 1.4
Home Equity (0.1) (0.8) (0.9)
Automobile 0.5 (0.1) 0.4
Other ^2^ 0.6 (0.1) 0.5
Total Loans and Leases 6.7 (7.0) (0.3)
Other — (0.1) (0.1)
Total Change in Interest Income 7.5 (8.8) (1.3)
Change in Interest Expense:
Interest-Bearing Deposits
Demand 0.1 (0.6) (0.5)
Savings 0.9 (0.5) 0.4
Time 0.2 (1.1) (0.9)
Total Interest-Bearing Deposits 1.2 (2.2) (1.0)
Short-Term Borrowings 0.1 (0.2) (0.1)
Securities Sold Under Agreements to Repurchase 0.8 (1.4) (0.6)
Other Debt (0.4) 0.3 (0.1)
Total Change in Interest Expense 1.7 (3.5) (1.8)
Change in Net Interest Income $ 5.8 $ (5.3) $ 0.5
^1^The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
^2^ Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- ---
Salaries and Benefits Table 9
Three Months Ended
March 31, December 31, March 31,
(dollars in thousands) 2020 2020 2019
Salaries $ 33,486 $ 33,465 $ 32,480
Incentive Compensation 245 4,864 5,904
Share-Based Compensation 1,291 1,475 3,079
Commission Expense 1,374 2,080 930
Retirement and Other Benefits 4,706 4,279 5,107
Payroll Taxes 4,543 2,386 4,247
Medical, Dental, and Life Insurance 4,142 2,903 4,465
Separation Expense 4,676 212 374
Total Salaries and Benefits $ 54,463 $ 51,664 $ 56,586
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Loan and Lease Portfolio Balances Table 10
March 31, December 31, September 30, June 30, March 31,
(dollars in thousands) 2020 2019 2019 2019 2019
Commercial
Commercial and Industrial $ 1,558,232 $ 1,379,152 $ 1,361,011 $ 1,408,729 $ 1,331,345
Commercial Mortgage 2,616,243 2,518,051 2,477,296 2,411,289 2,381,213
Construction 245,390 194,170 154,754 119,228 132,775
Lease Financing 110,704 122,454 163,672 163,070 154,919
Total Commercial 4,530,569 4,213,827 4,156,733 4,102,316 4,000,252
Consumer
Residential Mortgage 3,928,183 3,891,100 3,846,511 3,785,006 3,702,553
Home Equity 1,692,154 1,676,073 1,681,951 1,694,577 1,698,666
Automobile 716,214 720,286 713,424 703,523 676,730
Other ^1^ 485,660 489,606 482,679 473,707 470,408
Total Consumer 6,822,211 6,777,065 6,724,565 6,656,813 6,548,357
Total Loans and Leases $ 11,352,780 $ 10,990,892 $ 10,881,298 $ 10,759,129 $ 10,548,609
Deposits
March 31, December 31, September 30, June 30, March 31,
(dollars in thousands) 2020 2019 2019 2019 2019
Consumer $ 8,294,464 $ 8,118,494 $ 7,893,454 $ 7,880,284 $ 7,944,793
Commercial 6,358,583 6,324,214 6,153,492 6,178,984 6,162,042
Public and Other 1,402,314 1,341,774 1,293,806 1,429,553 1,160,475
Total Deposits $ 16,055,361 $ 15,784,482 $ 15,340,752 $ 15,488,821 $ 15,267,310
^1^ Comprised of other revolving credit, installment, and lease financing.
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 11
March 31, December 31, September 30, June 30, March 31,
(dollars in thousands) 2020 2019 2019 2019 2019
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial $ 634 $ 830 $ 573 $ 552 $ 393
Commercial Mortgage 9,048 9,244 11,088 11,310 5,911
Total Commercial 9,682 10,074 11,661 11,862 6,304
Consumer
Residential Mortgage 4,330 4,125 4,258 4,697 5,599
Home Equity 4,086 3,181 2,787 2,486 2,797
Total Consumer 8,416 7,306 7,045 7,183 8,396
Total Non-Accrual Loans and Leases 18,098 17,380 18,706 19,045 14,700
Foreclosed Real Estate 2,506 2,737 2,939 2,737 3,225
Total Non-Performing Assets $ 20,604 $ 20,117 $ 21,645 $ 21,782 $ 17,925
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial $ — $ — $ 81 $ — $ 66
Total Commercial — — 81 — 66
Consumer
Residential Mortgage $ 3,024 $ 1,839 $ 2,032 $ 1,859 $ 903
Home Equity 3,426 4,125 2,320 2,981 3,381
Automobile 866 949 582 607 734
Other ^1^ 1,205 1,493 1,076 963 1,033
Total Consumer 8,521 8,406 6,010 6,410 6,051
Total Accruing Loans and Leases Past Due 90 Days or More $ 8,521 $ 8,406 $ 6,091 $ 6,410 $ 6,117
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More $ 61,425 $ 63,103 $ 46,178 $ 48,563 $ 48,571
Total Loans and Leases $ 11,352,780 $ 10,990,892 $ 10,881,298 $ 10,759,129 $ 10,548,609
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases 0.16 % 0.16 % 0.17 % 0.18 % 0.14 %
Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate 0.18 % 0.18 % 0.20 % 0.20 % 0.17 %
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and
Leases and Commercial Foreclosed Real Estate 0.21 % 0.24 % 0.28 % 0.29 % 0.16 %
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate 0.16 % 0.15 % 0.15 % 0.15 % 0.18 %
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 0.26 % 0.26 % 0.25 % 0.26 % 0.23 %
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter $ 20,117 $ 21,645 $ 21,782 $ 17,925 $ 12,930
Additions 1,754 883 1,035 6,186 8,217
Reductions
Payments (315) (495) (984) (441) (989)
Return to Accrual Status (437) (1,673) — (1,344) (316)
Sales of Foreclosed Real Estate (231) (201) — (374) —
Charge-offs/Write-downs (284) (42) (188) (170) (1,917)
Total Reductions (1,267) (2,411) (1,172) (2,329) (3,222)
Balance at End of Quarter $ 20,604 $ 20,117 $ 21,645 $ 21,782 $ 17,925
^1^Comprised of other revolving credit, installment, and lease financing.
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Reserve for Credit Losses Table 12
Three Months Ended
March 31, December 31, March 31,
(dollars in thousands) 2020 2019 2019
Balance at Beginning of Period $ 116,849 $ 115,758 $ 113,515
Loans and Leases Charged-Off
Commercial
Commercial and Industrial (693) (307) (370)
Commercial Mortgage — — (1,616)
Consumer
Residential Mortgage (20) (50) (4)
Home Equity — (245) (295)
Automobile (2,500) (1,990) (1,753)
Other ^1^ (3,964) (3,651) (2,790)
Total Loans and Leases Charged-Off (7,177) (6,243) (6,828)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial 289 293 501
Commercial Mortgage 40 — —
Consumer
Residential Mortgage 263 699 484
Home Equity 976 577 588
Automobile 1,005 512 881
Other ^1^ 864 503 704
Total Recoveries on Loans and Leases Previously Charged-Off 3,437 2,584 3,158
Net Loans and Leases Charged-Off (3,740) (3,659) (3,670)
Provision for Credit Losses 33,600 4,750 3,000
Provision for Unfunded Commitments (170) — —
Balance at End of Period ^2^ $ 141,467 $ 116,849 $ 112,845
Components
Allowance for Credit Losses $ 138,150 $ 110,027 $ 106,023
Reserve for Unfunded Commitments 3,317 6,822 6,822
Total Reserve for Credit Losses $ 141,467 $ 116,849 $ 112,845
Average Loans and Leases Outstanding $ 11,060,707 $ 10,878,672 $ 10,467,321
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized) 0.14 % 0.13 % 0.14 %
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 1.22 % 1.00 % 1.01 %
^1^ Comprised of other revolving credit, installment, and lease financing.
^2^Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- ---
Business Segments Selected Financial Information Table 13
Consumer Commercial Treasury Consolidated
(dollars in thousands) Banking Banking and Other Total
Three Months Ended March 31, 2020
Net Interest Income $ 73,661 $ 45,986 $ 6,319 $ 125,966
Provision for Credit Losses 3,545 290 29,765 33,600
Net Interest Income After Provision for Credit Losses 70,116 45,696 (23,446) 92,366
Noninterest Income 32,590 11,735 1,824 46,149
Noninterest Expense (70,900) (17,298) (8,114) (96,312)
Income Before Provision for Income Taxes 31,806 40,133 (29,736) 42,203
Provision for Income Taxes (7,984) (9,760) 10,283 (7,461)
Net Income $ 23,822 $ 30,373 $ (19,453) $ 34,742
Total Assets as of March 31, 2020 $ 7,385,185 $ 4,584,040 $ 6,573,008 $ 18,542,233
Three Months Ended March 31, 2019 ^1^
Net Interest Income $ 76,352 $ 47,290 $ 1,195 $ 124,837
Provision for Credit Losses 2,224 1,446 (670) 3,000
Net Interest Income After Provision for Credit Losses 74,128 45,844 1,865 121,837
Noninterest Income 34,478 7,061 2,140 43,679
Noninterest Expense (69,427) (20,955) (2,675) (93,057)
Income Before Provision for Income Taxes 39,179 31,950 1,330 72,459
Provision for Income Taxes (9,834) (6,002) 2,176 (13,660)
Net Income $ 29,345 $ 25,948 $ 3,506 $ 58,799
Total Assets as of March 31, 2019^1^ $ 6,796,106 $ 4,004,176 $ 6,646,131 $ 17,446,413
^1^ Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Selected Quarterly Financial Data Table 14
Three Months Ended
March 31, December 31, September 30, June 30, March 31,
(dollars in thousands, except per share amounts) 2020 2019 2019 2019 2019
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases $ 108,210 $ 109,223 $ 110,877 $ 110,401 $ 108,511
Income on Investment Securities
Available-for-Sale 16,711 16,158 17,512 15,072 13,432
Held-to-Maturity 19,252 18,750 18,796 22,149 21,921
Deposits 9 8 9 9 15
Funds Sold 546 723 656 730 1,444
Other 218 239 233 210 319
Total Interest Income 144,946 145,101 148,083 148,571 145,642
Interest Expense
Deposits 14,260 16,407 18,055 18,628 15,284
Securities Sold Under Agreements to Repurchase 4,025 4,071 4,257 4,623 4,571
Funds Purchased 72 25 146 512 157
Short-Term Borrowings 39 — 1 1 36
Other Debt 584 713 728 710 757
Total Interest Expense 18,980 21,216 23,187 24,474 20,805
Net Interest Income 125,966 123,885 124,896 124,097 124,837
Provision for Credit Losses 33,600 4,750 4,250 4,000 3,000
Net Interest Income After Provision for Credit Losses 92,366 119,135 120,646 120,097 121,837
Noninterest Income
Trust and Asset Management 10,915 11,157 10,930 11,385 10,761
Mortgage Banking 2,695 3,199 4,864 3,336 2,287
Service Charges on Deposit Accounts 7,451 7,835 7,592 7,283 7,364
Fees, Exchange, and Other Service Charges 13,200 14,533 14,900 14,252 14,208
Investment Securities Gains (Losses), Net (970) (906) (1,469) (776) (835)
Annuity and Insurance 928 1,272 1,278 1,806 2,578
Bank-Owned Life Insurance 1,580 1,879 1,647 1,779 1,710
Other 10,350 8,733 6,765 6,385 5,606
Total Noninterest Income 46,149 47,702 46,507 45,450 43,679
Noninterest Expense
Salaries and Benefits 54,463 51,664 54,345 53,511 56,586
Net Occupancy 8,955 8,824 8,803 8,579 7,594
Net Equipment 8,456 7,930 7,637 6,895 6,833
Data Processing 4,788 4,828 4,676 4,727 4,526
Professional Fees 3,208 3,257 2,184 2,177 2,453
FDIC Insurance 1,456 1,376 1,257 1,290 1,269
Other 14,986 15,217 21,447 15,546 13,796
Total Noninterest Expense 96,312 93,096 100,349 92,725 93,057
Income Before Provision for Income Taxes 42,203 73,741 66,804 72,822 72,459
Provision for Income Taxes 7,461 15,598 14,752 15,903 13,660
Net Income $ 34,742 $ 58,143 $ 52,052 $ 56,919 $ 58,799
Basic Earnings Per Share $ 0.88 $ 1.46 $ 1.30 $ 1.40 $ 1.44
Diluted Earnings Per Share $ 0.87 $ 1.45 $ 1.29 $ 1.40 $ 1.43
Balance Sheet Totals
Loans and Leases $ 11,352,780 $ 10,990,892 $ 10,881,298 $ 10,759,129 $ 10,548,609
Total Assets 18,542,233 18,095,496 17,672,140 17,688,845 17,446,413
Total Deposits 16,055,361 15,784,482 15,340,752 15,488,821 15,267,310
Total Shareholders' Equity 1,327,929 1,286,832 1,291,490 1,285,948 1,269,690
Performance Ratios
Return on Average Assets 0.77 % 1.29 % 1.17 % 1.31 % 1.38 %
Return on Average Shareholders' Equity 10.64 17.84 16.02 17.97 18.81
Efficiency Ratio^1^ 55.96 54.26 58.55 54.69 55.22
Net Interest Margin ^2^ 2.96 2.95 3.01 3.04 3.12
^1^Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
^2^ Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Hawaii Economic Trends Table 15
Two Months Ended Year Ended
($ in millions; jobs in thousands) February 29, 2020 December 31, 2019 December 31, 2018
Hawaii Economic Trends
State General Fund Revenues^1^ $ 1,362.3 15.2 % $ 7,316.5 5.5 % $ 6,933.1 6.9 %
General Excise and Use Tax Revenue ^1^ $ 677.8 5.8 % $ 3,602.2 5.1 % $ 3,426.5 2.3 %
Jobs^2^ 651.2 648.9 649.9
January 31, December 31,
(spot rates) 2020 2019 2018
Unemployment ^3^
Statewide, seasonally adjusted 2.7 % 2.7 % 2.6 %
Oahu 2.7 2.1 2.2
Island of Hawaii 3.5 2.8 2.9
Maui 2.8 2.2 2.2
Kauai 3.0 2.4 2.3
March 31, December 31,
(percentage change, except months of inventory) 2020 2019 2018 2017
Housing Trends (Single Family Oahu)^4^
Median Home Price — % (0.1) % 4.6 % 2.7 %
Home Sales Volume (units) 11.6 % 3.9 % (7.7) % 6.3 %
Months of Inventory 2.6 2.5 2.8 2.1
Monthly Visitor Arrivals, Percentage Change
(in thousands) Not Seasonally Adjusted from Previous Year
Tourism ^5^
February 29, 2020 828.1 5.8
January 31, 2020 862.6 5.1
December 31, 2019 954.3 6.0
November 30, 2019 811.4 4.2
October 31, 2019 800.4 4.8
September 30, 2019 741.3 3.5
August 31, 2019 928.2 9.8
July 31, 2019 997.9 6.2
June 30, 2019 951.6 6.1
May 31, 2019 841.4 4.6
April 30, 2019 856.3 6.6
March 31, 2019 939.1 3.9
February 28, 2019 782.7 0.5
January 31, 2019 820.6 3.0
December 31, 2018 900.2 2.3
November 30, 2018 778.5 3.9
October 31, 2018 763.7 3.5
September 30, 2018 716.1 2.2
August 31, 2018 845.1 3.2
July 31, 2018 939.4 5.3
June 30, 2018 897.1 7.3
May 31, 2018 804.1 7.0
April 30, 2018 803.0 6.6
March 31, 2018 903.6 12.5
February 28, 2018 778.6 10.3
January 31, 2018 796.5 5.4
^1^ Source: Hawaii Department of Business, Economic Development & Tourism
^2^ Source: U. S. Bureau of Labor Statistics
^3^ Source: Hawaii Department of Labor and Industrial Relations, County jobs data not seasonally adjusted.
^4^ Source: Honolulu Board of REALTORS
^5^Source: Hawaii Tourism Authority

boh1q20earningsreleasesu

4/18/2020 Bank of Hawaii Corporation COVID-19 supplement April 2020 overview For more than 120 years, Bank of Hawaii has served our island communities. Natural events, over the decades, have taught us to prepare for the unexpected. As islanders, we are naturally conservative and place a premium on conservation. Having always been part of our communities, we are innately driven to nurture our community. As we confront COVID-19, we are well prepared and indeed uniquely positioned to weather the storm. the Hawaii market faces short/mid term long term value COVID-19 is challenge will accrue to we are well a health, although the firms committed positioned ethical, social long term to balancing the and economic attractiveness of and well needs of all crisis its visitor & prepared stakeholders military assets remains intact 2 1

4/18/2020 Hawaii COVID-19 infection activity 3 response timeline 3/25 branches rationalized 3/23 Honolulu C&C work from home 2/3 mass purchase of PPE and sanitation 2/20 3/18 products board review & BOH discussion work from home 1/28 3/10 Initial exec plan presented to meeting BOD January February March 4 2

4/18/2020 COVID-19 strategic implementation plan objectives • the health and safety of our employees are paramount. we are committed to providing a safe working environment • we are committed to providing for the essential financial needs of our customers and our community • we recognize certain customers provide essential service for our community. we will prioritize their banking needs accordingly 5 operations • branch structure reduced from 68 branches to 31 branches – coverage in all markets • 1,300 person corporate headquarters - tower reduced to 250 personnel effective week prior to shelter in place order • redundant teams and location sites created for certain operational functions • ~60% of workforce working from home. all equipped with laptop, VPN and mobile token capabilities 6 3

4/18/2020 employee support / workplace considerations • onsite employees receive $500/mos. stipend FT, $250/mos. PT • all COVID-19 incidents managed in conjunction with medical and industrial cleaning advisory groups • web based employee morale/engagement tool deployed • onsite employees afforded surplus sick leave as needed • executive team participates in twice daily video conference. frequent engagement with downline reports 7 customer • committed to providing full service banking capabilities via revised physical layout, work-from-home workforce and digital capabilities • payment relief provided to both consumer and commercial customers • processed over 2,100 PPP loans totaling in excess of $525 million • electronically distributed 65,000 stimulus payments totaling $112 million • committed to exploring emerging loan products 8 4

4/18/2020 customer modifications commercial - $ commercial - count # 451 15.7% oustandings $ $711 348 $613 95 $90 8 $9 principal interest P&I total principal interest P&I total consumer - count # 4,728 consumer – $ 3,827 5.9% outstandings $ $399 $333 901 $66 forbearance extension total forbearance extension total 9 community support • $3 million donation from Bank of Hawaii Foundation to Hawaii Community Foundation to support Hawaii COVID-19 support activities. proceeds focused on protecting frontline health professionals, nourishing the community and revitalization • donated 1,200 PPE items to the two largest healthcare providers in the state plus $100,000 in financial support for further PPE investment • waived ATM fees on all BOH ATM’s through June 2020 • provided line staff with broader authority to waive account level fees 10 5

4/18/2020 economic impact • unprecedented modern economic event • obvious and substantial impact to Hawaii and West Pacific markets • federal stimulus – both monetary and fiscal critical and meaningful • quality health outcome and recovery key to Hawaii market re-emergence 11 diversified Hawaii economy GDP by Industry Real Estate and Rentals 20% jobs by industry Government and Defense… 20% Trade, Transportation and Utilities 19% Professional Services 11% Leisure and Government Hospitality and Defense Leisure and Hospitality 10% 19% 19% Education and Health Services 8% Natural Resources, Mining and… 6% Real Estate and Rentals Finance, Finance, Insurance and Information 6% 2% Insurance and Information Personal Income by Industry Trade, 8% Transportati Government and Defense Spending 29% on and Professional Utilities Services Trade, Transportation and Utilities 16% 19% 12% Natural Professional Services 16% Resources, Education Mining and and Health Education and Health Services 12% Construction Services Leisure and Hospitality 11% 8% 13% Natural Resources, Mining and… 8% Finance, Insurance and Information 5% Real Estate and Rentals 3% Source: UHERO, 2019 data 12 6

4/18/2020 UHERO economic forecast Unemployment Rate Non-Farm Payroll 656.1 652.6 13.7 648.9 642.8 $ in in $ thousands 582.1 4.1 2.7 2.8 2.8 2019 2020F 2021F 2022F 2023F 2019 2020F 2021F 2022F 2023F Source: UHERO Forecast as of March 31, 2020 13 economic forecast Real GDP Personal Income Total Vistor Arrivals (MMs) Real Visitor Expenditures ($B) 17.7 99.2 16.8 17.0 98.0 15.9 97.3 96.7 89.9 87.6 10.3 10.5 10.2 10.4 9.3 84.5 $ in in $ billions 81.3 81.0 6.1 79.2 2019 2020F 2021F 2022F 2023F 2019 2020F 2021F 2022F 2023F 53.652.0 7.6 4.4 3.3 3.7 2.1 2.2 1.3 1.3 5.3 8.9 5.5 2.4 1.0 -0.3 % Change % Change -2.6 -40.8 -40.8 -7.7 2019 2020F 2021F 2022F 2023F 2019 2020F 2021F 2022F 2023F Source: UHERO Forecast as of March 31, 2020 14 7

4/18/2020 over $6 billion Hawaii COVID-19 relief Hawaii Funding $Millions State and County Government Response Efforts $1,250 Paycheck Protection 21% Hawaii Airports Program SBA Loans $133 $2,046 2% 33% Hawaii Health Care Providers $143 2% Local Schools and Colleges Unemployment Assistance $53 $1,140 1% 19% Supplemental Nutrition Direct Cash Payments Assistance Program Kauai Public Transit $1,240 $130 Services & Community 20% 2% Development Block Grants $13 0% Source: Press releases from Senator Brian Schatz as of April 14 and SBA as of April 16 15 BOH well positioned COVID-19 Bank of Hawaii • unprecedented • seasoned management team • substantial economic impact • exceptional liquidity • likely prolonged return • conservative loan to pre COVID-19 levels portfolio • Hawaii visitor industry • preeminent market reliant on normalized position social distancing • strong capital levels 16 8

4/18/2020 exceptional liquidity • high quality, liquid investment portfolio • exceptional core deposit base • flexible loan to deposit ratio • low cost funding base 17 conservative investment portfolio securities portfolio as of March 31, 2020 our investment securities portfolio consists of high-quality securities Sector Muni 2% Corp • 94% Aaa-rated, 100% A-rated 4% or higher • Highly Liquid and Pledgeable • Secure and Reliable Cash Flows Government/ Agency 94% Moody’s Rating Cash Flow Aa A 2% Bullets 4% 10% Monthly Payments Aaa 90% 94% 18 9

4/18/2020 strong mix of deposits as of March 31, 2020 solid base of core customers and core deposits Public Funds Time 9% 11% Commercial 39% Checking 48% Consumer Savings 52% 41% 91% core consumer and 89% core checking and commercial customers savings deposits 19 solid funding base loan to deposit ratio compared with peers supports balance sheet flexibility 110% 98% 98% 100% 93% 93% 94% 94% 91% 91% 91% 90% 87% 83% 85% 83% 84% 79% 80% 70% 70% 70% 66% 63% 61% 59% 60% 54% 55% 52% 51% 51% 50% 40% 30% 20% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Bank of Hawaii Peer Median S&P Regional Bank Index excluding banks greater than $50BN 20 10

4/18/2020 long history of deposit growth we have a long history of sustained deposit growth and low cost of deposits Financial Crisis 18,000 5.0 16,000 4.5 14,000 4.0 3.5 12,000 Deposit Cost 3.0 10,000 2.5 8,000 2.0 6,000 1.5 TotalMillions) ($ Deposits 1.10 4,000 1.0 0.73 2,000 0.610.5 - 0.0 Total Deposits Deposit Cost - BOH Deposit Cost - Hawaii Average Deposit Cost - National Average 21 conservative underwriting & portfolio construction we lend in markets we understand, to people we know, in communities we trust • diversified loan portfolio by category • disciplined approach to exposure limits • 73% of overall portfolio secured by quality real estate with combined wtd avg LTV of 57% • higher risk categories well mitigated 22 11

4/18/2020 geographic footprint – 92% Hawaii 23 long term relationships 57% of consumer borrowers > 10 year BOH relationship 64% of commercial borrowers > 10 year BOH relationship 24 12

4/18/2020 commercial loans – granularity 04^ 93% of loans under $30MM 72% under $15MM 25 loan portfolio C&I residential 14% mortgage 35% 60% consumer 40% commercial CRE 23% home equity 15% auto other construction 4% 6% 2% leasing 1% 26 13

4/18/2020 consumer loans • 57% wtd avg LTV • 798 wtd avg FICO • 0.2% <700FICO/>80% LTV residential mortgage $3.9B • 750 wtd avg FICO (58%) • 1.4% + 30 days delinquent • 1.1% <700FICO/30+ day other $0.5B Indirect (7%) home $0.7B equity (10%) $1.7B (25%) • 723 wtd avg FICO • 59% wtd avg LTV • 29% wtd avg DTI • 780 wtd avg FICO • 4.2% <700 FICO/>45% DTI • 3.3% <700FICO/>80% LTV 27 commercial loans leasing $0.1B / (2%) • seasoned Hawaii portfolio • 61% Hawaii based • 55% wtd avg LTV • 37% national large • 97% LTV ≤ 75% ticketed • 4% criticized construction $0.2B / (5%) CRE • 61% wtd avg LTV (5%) $2.6B • concentration in housing (58%) • Oahu centric C&I $1.6B (35%) • seasoned Hawaii centric • 94.4% non-levered • 1.3% levered & criticized 28 14

4/18/2020 higher risk industries lodging, retail, restaurant/entertainment represent 11% of outstandings restaurant/entertainment retail Lodging` 1% lodging retail 5% 5% all others 89% 29 retail – $0.6 B (5%) retail industry exposure • 88% real estate secured • 52% wtd avg LTV • average exposure $3.3 MM • largest exposure $25 MM • 76% of portfolio has an LTV ≤ 65% • 95.8% is secured or has essential anchor essential business anchors 30 15

4/18/2020 lodging – $0.5 B (5%) • 71% real estate secured • 51% wtd avg LTV • average exposure $11 MM • largest exposure $40 MM • 84% of portfolio has an LTV ≤ 65% • 95% of unsecured outstandings to global hotel and timeshare brands 31 restaurant/entertainment – $0.1 B (1%) • 39% secured with wtd avg LTV 63% • granular unsecured exposure with 82% under $10MM 32 16

4/18/2020 strong capital levels • capital levels substantially above “well capitalized” minimums • simple capital structure • strong history of dividends 33 strong capital position as of December 31, 2019 capital maintained at levels well in excess of required minimums and comparatively low risk assets 78.4 13.28 % 12.18 12.18 58.5 10.00 % 8.00 6.50 Common Equity Tier 1 Tier 1 Capital Ratio Total Capital Ratio BOH $10-50B Capital Ratio BOH Regulatory Well-Cap Minimum RWA/Total Assets S&P Regional Bank Index excluding banks greater than $50BN 34 17

4/18/2020 unbroken history of dividends we have a long and unbroken history of dividends $3.00 Recession Recession Financial Crisis $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Historical dividends adjusted for stock splits 35 appendix 18

4/18/2020 consumer behavior pivot consumer deposits % 60% online deposit openings 43% % 35% 32% 28% 25% 14% 12% 1/31/20 4/10/20 1/31/20 4/10/20 teller ATM mobile online loan application Zelle enrollees % 35% 38% # 39,038 30,377 22% 15% 1/31/20 4/10/20 1/31/20 4/10/20 residential mortgage home equity 37 diversified and stable deposits commercial and consumer (as of March 31, 2020) our deposits are granular and stable Account Size Age $8,000 $10MM+ Consumer & Business Balances 14% $7,000 Millions $5MM- <$100K $6,000 10MM 31% 5% $5,000 $1MM- $4,000 5MM 14% $3,000 $500K- $2,000 1MM $100-250K 8% 17% $1,000 $250-500K 11% $- 0 - 1 year 1 - 5 years 5 - 10 years 10+ years 86% have a balance less than $10MM 67% have a balance less than $1MM 68% have tenure greater than 5 years 47% have a balance less than $250K Charts represent sum of commercial and consumer customer deposit balances in each category shown. 38 19

4/18/2020 single family home price performance Honolulu single family home prices were relatively stable through great recession 350 Financial Crisis 303 300 297 296 250 200 150 100 50 0 Urban Honolulu San Francisco/ San Mateo/ Redwood City Los Angeles/ Long Beach/ Glendale Source: Federal Reserve Economic Data, All-Transaction House Price Index, Index 2000 Q1=100. 39 residential mortgage – current LTV 40 20

4/18/2020 residential mortgage – monitoring FICO 41 home equity – current CLTV 42 21

4/18/2020 home equity – monitoring FICO 43 automobile – DTI 44 22

4/18/2020 automobile – monitoring FICO 45 other consumer – delinquency status 46 23

4/18/2020 other consumer – monitoring FICO 47 commercial & industrial – leveraged 48 24

4/18/2020 commercial mortgage – current LTV 49 construction – current LTV 50 25

4/18/2020 lease financing – leveraged vs non-leveraged 51 26

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