8-K
BANK OF HAWAII CORP (BOH)
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 21, 2025 |
|---|---|
| (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 Perpetual Preferred Stock, Series A | BOH.PRA | New York Stock Exchange |
| Depository Shares, Each Representing 1/40th Interest in a Share of 8.000% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B | BOH.PRB | 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 April 21, 2025, Bank of Hawaii Corporation announced its results of operations for the quarter ended March 31, 2025. 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 21, 2025 Press Release: Bank of Hawaii Corporation First Quarter 2025 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 First Quarter 2025 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: April 21, 2025 | Bank of Hawaii Corporation | |
|---|---|---|
| By: | /s/ Patrick M. McGuirk | |
| Patrick M. McGuirk | ||
| Vice Chair and Chief Administrative Officer |
EX-99.1
Exhibit 99.1
Bank of Hawai‘i Corporation First Quarter 2025 Financial Results
- Diluted Earnings Per Common Share of $0.97
- Net Income of $44.0 Million
- Net Interest Income $125.8 Million
- Net Interest Margin 2.32%
- Board of Directors Declares Dividend of $0.70 Per Common Share
FOR IMMEDIATE RELEASE
HONOLULU, HI (April 21, 2025) -- Bank of Hawai‘i Corporation (NYSE: BOH) (the “Company”) today reported diluted earnings per common share of $0.97 for the first quarter of 2025, compared with $0.85 during the linked quarter and $0.87 during the same period last year. Net income for the first quarter of 2025 was $44.0 million, up 12.3% from the linked quarter and up 20.9% from the same period last year. The return on average common equity for the first quarter of 2025 was 11.80% compared with 10.30% during the linked quarter and 11.20% during the same period last year.
“Bank of Hawai‘i started 2025 with strong financial results,” said Peter Ho, Chairman and CEO. “In the first quarter, our net interest income and net interest margin both improved meaningfully for the fourth consecutive quarter. Average loan balances grew while average deposit balances held steady. We continued to optimize our balance sheet and our credit quality remained excellent.”
Financial Highlights
Net interest income for the first quarter of 2025 was $125.8 million, an increase of 4.7% from the linked quarter and an increase of 10.4% as compared to the same period last year. The increase from the previous quarter was primarily due to lower interest-bearing deposit rates and slowing of the shift from noninterest-bearing and interest-bearing accounts yielding less than 10 basis points to higher interest-bearing deposit accounts (deposit mix shift), partially offset by lower average balance of our earning asset balances and lower earning asset yields. The increase from the same period last year was primarily due to lower interest-bearing deposit rates, slowing of deposit mix shift, higher earning asset yields and higher average balance of our earning assets, partially offset by lower average balance of noninterest-bearing deposits.
Net interest margin was 2.32% in the first quarter of 2025, an increase of 13 basis points from the linked quarter and an increase of 21 basis points from the same period last year. The increase from the previous quarter was primarily due to lower interest-bearing deposit rates and slowing of deposit mix shift, partially offset by lower earning asset yields. The increase from the same period last year was primarily due to lower interest-bearing deposit rates, slowing of deposit mix shift and higher earning asset yields.
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Bank of Hawai‘i Corporation Fourth Quarter and Full Year 2024 Financial Results Page 2
The average yield on loans and leases was 4.72% in the first quarter of 2025, down 1 basis point from the linked quarter and up 9 basis points from the same period last year. The average yield on total earning assets was 3.95% in the first quarter of 2025, down 2 basis points from the linked quarter and up 6 basis points from the same period last year. The average rate of interest-bearing deposits was 2.16% in the first quarter of 2025, down 21 basis points from the linked quarter and down 23 basis points from the same period last year. The average quarterly rate of total deposits, including noninterest-bearing deposits, was 1.60%, down 17 basis points from the linked quarter and down 14 basis points from the same period last year. The changes in yields and rates over the prior periods reflected the lower rate environment, including lower benchmark interest rates.
Noninterest income was $44.1 million in the first quarter of 2025, an increase of 2.3% from the linked quarter and an increase of 4.2% from the same period in 2024. The increase from the linked quarter was primarily due to a decrease in investment securities losses and increases in bank-owned life insurance income and annuity and insurance income, partially offset by decreases in trust and asset management income, service charges on deposit accounts and other income. The increase from the same period last year was primarily due to increases in trust and asset management income, service charges on deposit accounts, bank-owned life insurance income and annuity and insurance income.
Noninterest expense was $110.5 million in the first quarter of 2025, an increase of 2.3% from the linked quarter and an increase of 4.3% from the same period last year. The increase from the prior periods was primarily due to higher salaries and benefits and other expenses, partially offset by lower FDIC insurance and professional fees.
The effective tax rate for the first quarter of 2025 was 21.67% compared with 24.02% during the linked quarter and 24.76% during the same period last year. The lower effective tax rate in the current quarter as compared to the linked quarter was primarily due to a decrease in disallowed compensation and an increase in tax benefits associated with certain tax advantaged investments. Compared to the same period last year, the decrease was primarily due to an increase in tax benefits associated with certain tax advantaged investments and a decrease in tax expense from discrete items.
Asset Quality
The Company’s overall asset quality remained strong during the first quarter of 2025. Provision for credit losses for the first quarter of 2025 was $3.3 million compared with $3.8 million in the linked quarter and $2.0 million in the same period last year.
Total non-performing assets were $17.5 million at March 31, 2025, down $1.8 million from December 31, 2024 and up $5.6 million from March 31, 2024. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.12% at the end of the quarter, a decrease of 2 basis points from the linked quarter and an increase of 3 basis points from the same period last year.
Net loan and lease charge-offs during the first quarter of 2025 were $4.4 million or 13 basis points annualized of total average loans and leases outstanding and comprised of gross charge-offs of $5.7 million partially offset by gross recoveries of $1.3 million. Compared to the linked quarter, net loan and lease charge-offs increased by $1.0 million or 3 basis points annualized on total average loans and leases outstanding. Compared to the same period last year, net loan and lease charge-offs increased by $2.1 million or 6 basis points annualized on total average loans and leases outstanding.
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Bank of Hawai‘i Corporation Fourth Quarter and Full Year 2024 Financial Results Page 3
The allowance for credit losses on loans and leases was $147.7 million at March 31, 2025, a decrease of $0.8 million from December 31, 2024 and flat from March 31, 2024. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.05% at the end of the quarter, down 1 basis point from the linked quarter and down 2 basis points from the same period last year.
Balance Sheet
Total assets were $23.9 billion at March 31, 2025, an increase of 1.2% from December 31, 2024 and an increase of 2.0% from March 31, 2024. The increase from the linked quarter was primarily due to increases in cash and cash equivalents and investment securities. The increase from the same period last year was primarily due to increases in loans and investment securities.
The investment securities portfolio was $7.4 billion at March 31, 2025, an increase of 1.6% from December 31, 2024 and an increase of 2.2% from March 31, 2024. The increase from the prior periods was primarily due to the purchases of investment securities, partially offset by cashflows from the portfolio. 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 $14.1 billion at March 31, 2025, an increase of 0.3% from December 31, 2024 and an increase of 1.9% from March 31, 2024. Total commercial loans were $6.2 billion at March 31, 2025, an increase of 1.2% from December 31, 2024 and an increase of 7.3% from March 31, 2024. The increase from the linked quarter was primarily due to loan production within our construction portfolio. The increase from the same period last year was primarily due to loan production within our commercial mortgage portfolio. Total consumer loans were $7.9 billion at March 31, 2025, a decrease of 0.4% from the linked quarter and a decrease of 2.0% from the same period last year. The decrease from the prior periods was due to declines in our home equity and automobile portfolios.
Total deposits were $21.0 billion at March 31, 2025, an increase of 1.8% from December 31, 2024 and an increase of 1.6% from March 31, 2024. Noninterest-bearing deposits made up 26.1% of total deposit balances at March 31, 2025, down from 26.3% at December 31, 2024 and down from 26.8% at March 31, 2024. Average total deposits were $20.7 billion for the first quarter of 2025, down 0.4% from $20.8 billion in the linked quarter and up 0.6% from $20.5 billion in the same period last year.
Capital and Dividends
The Company’s capital levels remain well above regulatory well-capitalized minimums.
The Tier 1 Capital Ratio was 13.93% at March 31, 2025 compared with 13.95% at December 31, 2024 and 12.74% at March 31, 2024. The decrease from the linked quarter were due to increases in risk-weighted assets, partially offset by retained earnings growth. The increase from the same period last year was primarily due to the issuance of $165.0 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, at a rate of 8.00% in the second quarter of 2024. The Tier 1 Leverage Ratio was 8.36% at March 31, 2025, compared with 8.31% at December 31, 2024 and 7.62% at March 31, 2024. The increase from the linked quarter were due to a decrease in average total assets and an increase in retained earnings.
No shares of common stock were repurchased under the share repurchase program in the first quarter of 2025. Total remaining buyback authority under the share repurchase program was $126.0 million at March 31, 2025.
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Bank of Hawai‘i Corporation Fourth Quarter and Full Year 2024 Financial Results Page 4
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 June 13, 2025 to shareholders of record at the close of business on May 30, 2025.
On April 4, 2025, the Company announced that the Board of Directors declared a quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, and a quarterly dividend payment of $20.00 per share, equivalent to $0.5000 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B. The depositary shares representing the Series A Preferred Stock and Series B Preferred Stock are traded on the NYSE under the symbol “BOH.PRA” and “BOH.PRB”, respectively. The dividends on the Series A Preferred Stock and Series B Preferred Stock will be payable on May 1, 2025 to shareholders of record of the preferred stock as of the close of business on April 16, 2025.
Conference Call Information
The Company will review its first 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-conf.media-server.com/register/BI61ce682f562949d3b8f602272bc03f6e. A replay of the conference call will be available for one year beginning at approximately 11:00 a.m. Hawai‘i Time on Monday, April 21, 2025. The replay will be available on the Company's website, www.boh.com.
Investor Announcements
Investors and others should note that the Company intends to announce financial and other information to the Company’s investors using the Company’s investor relations website at https://ir.boh.com, social media channels, press releases, SEC filings and public conference calls and webcasts, all for purposes of complying with the Company’s disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, as information is updated, and new information is posted.
Forward-Looking Statements
This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawai‘i Corporation's Annual Report on Form 10-K for the year ended December 31, 2024 which was filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.
Bank of Hawai‘i Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawai‘i and the West Pacific. The Company's principal subsidiary, Bank of Hawai‘i, was founded in 1897. For more information about Bank of Hawai‘i Corporation, see the Company’s website, www.boh.com. Bank of Hawai‘i Corporation is a trade name of Bank of Hawaii Corporation.
# #
Exhibit 99.1
| Bank of Hawai‘i Corporation and Subsidiaries | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Financial Highlights | Table 1 | ||||||||
| Three Months Ended | |||||||||
| March 31, | December 31, | March 31, | |||||||
| (dollars in thousands, except per share amounts) | 2025 | 2024 | 2024 | ||||||
| For the Period: | |||||||||
| Operating Results | |||||||||
| Net Interest Income | $ | 125,807 | $ | 120,178 | $ | 113,938 | |||
| Provision for Credit Losses | 3,250 | 3,750 | 2,000 | ||||||
| Total Noninterest Income | 44,058 | 43,047 | 42,285 | ||||||
| Total Noninterest Expense | 110,459 | 107,931 | 105,859 | ||||||
| Pre-Provision Net Revenue | 59,406 | 55,294 | 50,364 | ||||||
| Net Income | 43,985 | 39,162 | 36,391 | ||||||
| Net Income Available to Common Shareholders | 38,716 | 33,893 | 34,422 | ||||||
| Basic Earnings Per Common Share | 0.98 | 0.86 | 0.87 | ||||||
| Diluted Earnings Per Common Share | 0.97 | 0.85 | 0.87 | ||||||
| Dividends Declared Per Common Share | 0.70 | 0.70 | 0.70 | ||||||
| Performance Ratios | |||||||||
| Return on Average Assets | 0.75 | % | 0.66 | % | 0.63 | % | |||
| Return on Average Shareholders' Equity | 10.65 | 9.42 | 10.34 | ||||||
| Return on Average Common Equity | 11.80 | 10.30 | 11.20 | ||||||
| Efficiency Ratio 1 | 65.03 | 66.12 | 67.76 | ||||||
| Net Interest Margin 2 | 2.32 | 2.19 | 2.11 | ||||||
| Dividend Payout Ratio 3 | 71.43 | 81.40 | 80.46 | ||||||
| Average Shareholders' Equity to Average Assets | 7.09 | 6.98 | 6.08 | ||||||
| Average Balances | |||||||||
| Average Loans and Leases | $ | 14,062,173 | $ | 13,964,687 | $ | 13,868,800 | |||
| Average Assets | 23,638,068 | 23,682,494 | 23,281,566 | ||||||
| Average Deposits | 20,669,539 | 20,756,682 | 20,543,640 | ||||||
| Average Shareholders' Equity | 1,675,571 | 1,654,156 | 1,416,102 | ||||||
| Per Share of Common Stock | |||||||||
| Book Value | $ | 34.23 | $ | 33.27 | $ | 31.62 | |||
| Tangible Book Value | 33.43 | 32.47 | 30.83 | ||||||
| Market Value | |||||||||
| Closing | 68.97 | 71.24 | 62.39 | ||||||
| High | 76.00 | 82.70 | 73.73 | ||||||
| Low | 65.82 | 60.58 | 58.38 | ||||||
| March 31, | December 31, | March 31, | |||||||
| 2025 | 2024 | 2024 | |||||||
| As of Period End: | |||||||||
| Balance Sheet Totals | |||||||||
| Loans and Leases | $ | 14,115,323 | $ | 14,075,980 | $ | 13,853,837 | |||
| Total Assets | 23,885,056 | 23,601,114 | 23,420,860 | ||||||
| Total Deposits | 21,008,217 | 20,633,037 | 20,676,586 | ||||||
| Other Debt | 558,250 | 558,274 | 560,163 | ||||||
| Total Shareholders' Equity | 1,704,935 | 1,667,774 | 1,435,977 | ||||||
| Asset Quality | |||||||||
| Non-Performing Assets | $ | 17,451 | $ | 19,300 | $ | 11,838 | |||
| Allowance for Credit Losses - Loans and Leases | 147,707 | 148,528 | 147,664 | ||||||
| Allowance to Loans and Leases Outstanding 4 | 1.05 | % | 1.06 | % | 1.07 | % | |||
| Capital Ratios 5 | |||||||||
| Common Equity Tier 1 Capital Ratio | 11.58 | % | 11.59 | % | 11.50 | % | |||
| Tier 1 Capital Ratio | 13.93 | 13.95 | 12.74 | ||||||
| Total Capital Ratio | 14.97 | 15.00 | 13.81 | ||||||
| Tier 1 Leverage Ratio | 8.36 | 8.31 | 7.62 | ||||||
| Total Shareholders' Equity to Total Assets | 7.14 | 7.07 | 6.13 | ||||||
| Tangible Common Equity to Tangible Assets 6 | 5.57 | 5.48 | 5.24 | ||||||
| Tangible Common Equity to Risk-Weighted Assets 6 | 9.28 | 9.08 | 8.70 | ||||||
| Non-Financial Data | |||||||||
| Full-Time Equivalent Employees | 1,876 | 1,865 | 1,891 | ||||||
| Branches | 50 | 50 | 50 | ||||||
| ATMs | 316 | 317 | 315 | ||||||
| 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 March 31, 2025 are preliminary. | |||||||||
| 6 Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. | |||||||||
| Tangible common equity is defined by the Company as common shareholders' equity minus goodwill. See Table 2 "Reconciliation of Non-GAAP Financial Measures". | |||||||||
| Bank of Hawai‘i Corporation and Subsidiaries | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Reconciliation of Non-GAAP Financial Measures | Table 2 | ||||||||
| March 31, | December 31, | March 31, | |||||||
| (dollars in thousands) | 2025 | 2024 | 2024 | ||||||
| Total Shareholders' Equity | $ | 1,704,935 | $ | 1,667,774 | $ | 1,435,977 | |||
| Less: Preferred Stock | 345,000 | 345,000 | 180,000 | ||||||
| Goodwill | 31,517 | 31,517 | 31,517 | ||||||
| Tangible Common Equity | $ | 1,328,418 | $ | 1,291,257 | $ | 1,224,460 | |||
| Total Assets | $ | 23,885,056 | $ | 23,601,114 | $ | 23,420,860 | |||
| Less: Goodwill | 31,517 | 31,517 | 31,517 | ||||||
| Tangible Assets | $ | 23,853,539 | $ | 23,569,597 | $ | 23,389,343 | |||
| Risk-Weighted Assets, determined in accordance | |||||||||
| with prescribed regulatory requirements 1 | $ | 14,319,932 | $ | 14,225,908 | $ | 14,071,841 | |||
| Total Shareholders' Equity to Total Assets | 7.14 | % | 7.07 | % | 6.13 | % | |||
| Tangible Common Equity to Tangible Assets (Non-GAAP) | 5.57 | % | 5.48 | % | 5.24 | % | |||
| Tier 1 Capital Ratio 1 | 13.93 | % | 13.95 | % | 12.74 | % | |||
| Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1 | 9.28 | % | 9.08 | % | 8.70 | % | |||
| 1 Regulatory capital ratios as of March 31, 2025 are preliminary. | |||||||||
| Bank of Hawai‘i Corporation and Subsidiaries | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Consolidated Statements of Income | Table 3 | ||||||||
| Three Months Ended | |||||||||
| March 31, | December 31, | March 31, | |||||||
| (dollars in thousands, except per share amounts) | 2025 | 2024 | 2024 | ||||||
| Interest Income | |||||||||
| Interest and Fees on Loans and Leases | $ | 163,082 | $ | 164,785 | $ | 159,336 | |||
| Income on Investment Securities | |||||||||
| Available-for-Sale | 24,368 | 23,223 | 21,757 | ||||||
| Held-to-Maturity | 20,291 | 20,677 | 22,136 | ||||||
| Cash and Cash Equivalents | 5,460 | 9,425 | 6,157 | ||||||
| Other | 1,085 | 1,107 | 970 | ||||||
| Total Interest Income | 214,286 | 219,217 | 210,356 | ||||||
| Interest Expense | |||||||||
| Deposits | 81,692 | 92,099 | 89,056 | ||||||
| Securities Sold Under Agreements to Repurchase | 744 | 992 | 1,443 | ||||||
| Other Debt | 6,043 | 5,948 | 5,919 | ||||||
| Total Interest Expense | 88,479 | 99,039 | 96,418 | ||||||
| Net Interest Income | 125,807 | 120,178 | 113,938 | ||||||
| Provision for Credit Losses | 3,250 | 3,750 | 2,000 | ||||||
| Net Interest Income After Provision for Credit Losses | 122,557 | 116,428 | 111,938 | ||||||
| Noninterest Income | |||||||||
| Fees, Exchange, and Other Service Charges | 14,437 | 14,399 | 14,123 | ||||||
| Trust and Asset Management | 11,741 | 12,157 | 11,189 | ||||||
| Service Charges on Deposit Accounts | 8,259 | 8,678 | 7,947 | ||||||
| Bank-Owned Life Insurance | 3,611 | 3,283 | 3,356 | ||||||
| Annuity and Insurance | 1,555 | 1,347 | 1,046 | ||||||
| Mortgage Banking | 988 | 942 | 951 | ||||||
| Investment Securities Losses, Net | (1,607 | ) | (3,306 | ) | (1,497 | ) | |||
| Other | 5,074 | 5,547 | 5,170 | ||||||
| Total Noninterest Income | 44,058 | 43,047 | 42,285 | ||||||
| Noninterest Expense | |||||||||
| Salaries and Benefits | 62,884 | 58,690 | 58,215 | ||||||
| Net Occupancy | 10,559 | 10,263 | 10,456 | ||||||
| Net Equipment | 10,192 | 10,308 | 10,103 | ||||||
| Data Processing | 5,267 | 5,313 | 4,770 | ||||||
| Professional Fees | 4,264 | 4,988 | 4,677 | ||||||
| FDIC Insurance | 1,642 | 3,711 | 3,614 | ||||||
| Other | 15,651 | 14,658 | 14,024 | ||||||
| Total Noninterest Expense | 110,459 | 107,931 | 105,859 | ||||||
| Income Before Provision for Income Taxes | 56,156 | 51,544 | 48,364 | ||||||
| Provision for Income Taxes | 12,171 | 12,382 | 11,973 | ||||||
| Net Income | $ | 43,985 | $ | 39,162 | $ | 36,391 | |||
| Preferred Stock Dividends | 5,269 | 5,269 | 1,969 | ||||||
| Net Income Available to Common Shareholders | $ | 38,716 | $ | 33,893 | $ | 34,422 | |||
| Basic Earnings Per Common Share | $ | 0.98 | $ | 0.86 | $ | 0.87 | |||
| Diluted Earnings Per Common Share | $ | 0.97 | $ | 0.85 | $ | 0.87 | |||
| Dividends Declared Per Common Share | $ | 0.70 | $ | 0.70 | $ | 0.70 | |||
| Basic Weighted Average Common Shares | 39,554,834 | 39,513,210 | 39,350,390 | ||||||
| Diluted Weighted Average Common Shares | 39,876,406 | 39,836,758 | 39,626,463 | ||||||
| Bank of Hawai‘i Corporation and Subsidiaries | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | ||
| Consolidated Statements of Comprehensive Income | |||||||||
| December 31, | |||||||||
| (dollars in thousands) | 2024 | ||||||||
| Net Income | 43,985 | 39,162 | 36,391 | ||||||
| Other Comprehensive Income (Loss), Net of Tax: | |||||||||
| Net Unrealized Gains (Losses) on Investment Securities | 24,760 | (7,388 | ) | 12,938 | |||||
| Defined Benefit Plans | 232 | (641 | ) | 169 | |||||
| Other Comprehensive Income (Loss) | 24,992 | (8,029 | ) | 13,107 | |||||
| Comprehensive Income | 68,977 | 31,133 | 49,498 |
All values are in US Dollars.
| Bank of Hawai‘i Corporation and Subsidiaries | ||||||||
|---|---|---|---|---|---|---|---|---|
| Consolidated Statements of Condition | Table 5 | |||||||
| December 31, | March 31, | |||||||
| (dollars in thousands, except per share amounts) | 2024 | 2024 | ||||||
| Assets | ||||||||
| Cash and Cash Equivalents | 935,200 | $ | 763,571 | $ | 891,521 | |||
| Investment Securities | ||||||||
| Available-for-Sale | 2,887,019 | 2,689,528 | 2,352,051 | |||||
| Held-to-Maturity (Fair Value of 3,823,655; 3,820,882; and 4,104,622) | 4,535,108 | 4,618,543 | 4,913,457 | |||||
| Loans Held for Sale | 2,640 | 2,150 | 2,182 | |||||
| Loans and Leases | 14,115,323 | 14,075,980 | 13,853,837 | |||||
| Allowance for Credit Losses | (147,707 | ) | (148,528 | ) | (147,664 | ) | ||
| Net Loans and Leases | 13,967,616 | 13,927,452 | 13,706,173 | |||||
| Premises and Equipment, Net | 187,858 | 184,480 | 192,486 | |||||
| Operating Lease Right-of-Use Assets | 83,577 | 80,165 | 85,501 | |||||
| Accrued Interest Receivable | 67,706 | 66,367 | 67,887 | |||||
| Mortgage Servicing Rights | 18,770 | 19,199 | 20,422 | |||||
| Goodwill | 31,517 | 31,517 | 31,517 | |||||
| Bank-Owned Life Insurance | 481,260 | 481,184 | 468,206 | |||||
| Other Assets | 686,785 | 736,958 | 689,457 | |||||
| Total Assets | 23,885,056 | $ | 23,601,114 | $ | 23,420,860 | |||
| Liabilities | ||||||||
| Deposits | ||||||||
| Noninterest-Bearing Demand | 5,493,232 | $ | 5,423,562 | $ | 5,542,930 | |||
| Interest-Bearing Demand | 3,775,948 | 3,784,984 | 3,823,224 | |||||
| Savings | 8,700,143 | 8,364,916 | 8,231,245 | |||||
| Time | 3,038,894 | 3,059,575 | 3,079,187 | |||||
| Total Deposits | 21,008,217 | 20,633,037 | 20,676,586 | |||||
| Securities Sold Under Agreements to Repurchase | 50,000 | 100,000 | 150,490 | |||||
| Other Debt | 558,250 | 558,274 | 560,163 | |||||
| Operating Lease Liabilities | 92,267 | 88,794 | 94,104 | |||||
| Retirement Benefits Payable | 23,640 | 23,760 | 23,365 | |||||
| Accrued Interest Payable | 23,261 | 34,799 | 37,081 | |||||
| Other Liabilities | 424,486 | 494,676 | 443,094 | |||||
| Total Liabilities | 22,180,121 | 21,933,340 | 21,984,883 | |||||
| Shareholders' Equity | ||||||||
| Preferred Stock (Series A, .01 par value; authorized 180,000 shares issued and outstanding) | 180,000 | 180,000 | 180,000 | |||||
| Preferred Stock (Series B, .01 par value; authorized 165,000 shares issued and outstanding) | 165,000 | 165,000 | - | |||||
| Common Stock (.01 par value; authorized 500,000,000 shares; | ||||||||
| issued / outstanding: March 31, 2025 - 58,765,864 / 39,734,304; | ||||||||
| December 31, 2024 - 58,765,907 / 39,762,255; and March 31, 2024 - 58,753,708 / 39,720,724) | 586 | 585 | 584 | |||||
| Capital Surplus | 651,374 | 647,403 | 640,663 | |||||
| Accumulated Other Comprehensive Loss | (318,397 | ) | (343,389 | ) | (383,581 | ) | ||
| Retained Earnings | 2,144,326 | 2,133,838 | 2,114,729 | |||||
| Treasury Stock, at Cost (Shares: March 31, 2025 - 19,031,560; December 31, 2024 - 19,003,609; | ||||||||
| and March 31, 2024 - 19,032,984) | (1,117,954 | ) | (1,115,663 | ) | (1,116,418 | ) | ||
| Total Shareholders' Equity | 1,704,935 | 1,667,774 | 1,435,977 | |||||
| Total Liabilities and Shareholders' Equity | 23,885,056 | $ | 23,601,114 | $ | 23,420,860 |
All values are in US Dollars.
| Bank of Hawai‘i Corporation and Subsidiaries | ||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Statements of Shareholders' Equity | ||||||||||||||||||||||||||
| Accumulated | ||||||||||||||||||||||||||
| Preferred | Other | |||||||||||||||||||||||||
| Preferred | Shares | Preferred | Common | Comprehensive | ||||||||||||||||||||||
| Series A | Series B | Series B | Shares | Common | Capital | Income | Treasury | |||||||||||||||||||
| (dollars in thousands, except per share amounts) | Stock | Outstanding | Stock | Outstanding | Stock | Surplus | (Loss) | Stock | Total | |||||||||||||||||
| Balance as of December 31, 2024 | 180,000 | $ | 180,000 | 165,000 | $ | 165,000 | 39,762,255 | $ | 585 | $ | 647,403 | $ | (343,389 | ) | 2,133,838 | $ | (1,115,663 | ) | $ | 1,667,774 | ||||||
| Net Income | - | - | - | - | - | - | - | - | 43,985 | - | 43,985 | |||||||||||||||
| Other Comprehensive Income | - | - | - | - | - | - | - | 24,992 | - | - | 24,992 | |||||||||||||||
| Share-Based Compensation | - | - | - | - | - | - | 3,680 | - | - | - | 3,680 | |||||||||||||||
| Common Stock Issued under Purchase | ||||||||||||||||||||||||||
| and Equity Compensation Plans | - | - | - | - | 19,477 | 1 | 291 | - | - | 1,023 | 1,315 | |||||||||||||||
| Common Stock Repurchased | - | - | - | - | (47,428 | ) | - | - | - | - | (3,314 | ) | (3,314 | ) | ||||||||||||
| Cash Dividends Declared Common Stock | ||||||||||||||||||||||||||
| (0.70 per share) | - | - | - | - | - | - | - | - | (28,228 | ) | - | (28,228 | ) | |||||||||||||
| Cash Dividends Declared Preferred Stock | - | - | - | - | - | - | - | - | (5,269 | ) | - | (5,269 | ) | |||||||||||||
| Balance as of March 31, 2025 | 180,000 | $ | 180,000 | 165,000 | $ | 165,000 | 39,734,304 | $ | 586 | $ | 651,374 | $ | (318,397 | ) | 2,144,326 | $ | (1,117,954 | ) | $ | 1,704,935 | ||||||
| Balance as of December 31, 2023 | 180,000 | $ | 180,000 | - | $ | - | 39,753,138 | $ | 583 | $ | 636,422 | $ | (396,688 | ) | 2,107,569 | $ | (1,113,644 | ) | $ | 1,414,242 | ||||||
| Net Income | - | - | - | - | - | - | - | - | 36,391 | - | 36,391 | |||||||||||||||
| Other Comprehensive Income | - | - | - | - | - | - | - | 13,107 | - | - | 13,107 | |||||||||||||||
| Share-Based Compensation | - | - | - | - | - | - | 4,030 | - | - | - | 4,030 | |||||||||||||||
| Common Stock Issued under Purchase | ||||||||||||||||||||||||||
| and Equity Compensation Plans | - | - | - | - | 21,332 | 1 | 211 | - | 794 | 546 | 1,552 | |||||||||||||||
| Common Stock Repurchased | - | - | - | - | (53,746 | ) | - | - | - | - | (3,320 | ) | (3,320 | ) | ||||||||||||
| Cash Dividends Declared Common Stock | ||||||||||||||||||||||||||
| (0.70 per share) | - | - | - | - | - | - | - | - | (28,056 | ) | - | (28,056 | ) | |||||||||||||
| Cash Dividends Declared Preferred Stock | - | - | - | - | - | - | - | - | (1,969 | ) | - | (1,969 | ) | |||||||||||||
| Balance as of March 31, 2024 | 180,000 | $ | 180,000 | - | $ | - | 39,720,724 | $ | 584 | $ | 640,663 | $ | (383,581 | ) | 2,114,729 | $ | (1,116,418 | ) | $ | 1,435,977 |
All values are in US Dollars.
| Bank of Hawai‘i Corporation and Subsidiaries | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Average Balances and Interest Rates - Taxable-Equivalent Basis 1 | Table 7 | |||||||||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||||||||||
| December 31, 2024 | March 31, 2024 | |||||||||||||||||||
| Income / | Yield / | Average | Income / | Yield / | Average | Income / | Yield / | |||||||||||||
| (dollars in millions) | Expense 2 | Rate | Balance | Expense 2 | Rate | Balance | Expense 2 | Rate | ||||||||||||
| Earning Assets | ||||||||||||||||||||
| Cash and Cash Equivalents | 500.0 | $ | 5.5 | 4.37 | % | $ | 784.9 | $ | 9.4 | 4.70 | % | $ | 460.7 | $ | 6.1 | 5.29 | % | |||
| Investment Securities | ||||||||||||||||||||
| Available-for-Sale | ||||||||||||||||||||
| Taxable | 2,790.3 | 24.1 | 3.47 | 2,614.5 | 23.0 | 3.50 | 2,380.4 | 21.8 | 3.66 | |||||||||||
| Non-Taxable | 21.3 | 0.3 | 5.68 | 21.5 | 0.3 | 6.39 | 1.7 | 0.0 | 1.99 | |||||||||||
| Held-to-Maturity | ||||||||||||||||||||
| Taxable | 4,548.6 | 20.2 | 1.77 | 4,636.7 | 20.5 | 1.77 | 4,926.8 | 21.9 | 1.79 | |||||||||||
| Non-Taxable | 34.1 | 0.2 | 2.09 | 34.3 | 0.2 | 2.10 | 34.7 | 0.2 | 2.10 | |||||||||||
| Total Investment Securities | 7,394.3 | 44.8 | 2.43 | 7,307.0 | 44.0 | 2.41 | 7,343.6 | 43.9 | 2.40 | |||||||||||
| Loans Held for Sale | 2.3 | 0.0 | 6.06 | 4.0 | 0.1 | 5.86 | 2.2 | 0.0 | 6.17 | |||||||||||
| Loans and Leases 3 | ||||||||||||||||||||
| Commercial Mortgage | 4,015.2 | 52.5 | 5.30 | 3,868.7 | 52.0 | 5.34 | 3,716.6 | 50.5 | 5.46 | |||||||||||
| Commercial and Industrial | 1,703.7 | 21.3 | 5.06 | 1,697.9 | 22.1 | 5.18 | 1,663.3 | 22.0 | 5.34 | |||||||||||
| Construction | 338.5 | 6.0 | 7.22 | 346.6 | 6.6 | 7.54 | 307.9 | 5.6 | 7.27 | |||||||||||
| Commercial Lease Financing | 91.1 | 0.9 | 3.83 | 82.9 | 0.7 | 3.62 | 58.4 | 0.3 | 1.87 | |||||||||||
| Residential Mortgage | 4,616.7 | 44.8 | 3.88 | 4,621.0 | 45.3 | 3.93 | 4,649.9 | 45.0 | 3.87 | |||||||||||
| Home Equity | 2,154.4 | 22.5 | 4.23 | 2,181.6 | 22.5 | 4.10 | 2,250.1 | 21.1 | 3.78 | |||||||||||
| Automobile | 752.6 | 9.3 | 5.02 | 774.4 | 9.5 | 4.90 | 831.0 | 8.9 | 4.30 | |||||||||||
| Other | 390.0 | 7.1 | 7.41 | 391.6 | 7.2 | 7.29 | 391.6 | 6.5 | 6.66 | |||||||||||
| Total Loans and Leases | 14,062.2 | 164.4 | 4.72 | 13,964.7 | 165.9 | 4.73 | 13,868.8 | 159.9 | 4.63 | |||||||||||
| Other | 65.1 | 1.1 | 6.67 | 65.0 | 1.1 | 6.82 | 62.3 | 1.1 | 6.23 | |||||||||||
| Total Earning Assets | 22,023.9 | 215.8 | 3.95 | 22,125.6 | 220.5 | 3.97 | 21,737.6 | 211.0 | 3.89 | |||||||||||
| Non-Earning Assets | 1,614.2 | 1,556.9 | 1,544.0 | |||||||||||||||||
| Total Assets | 23,638.1 | $ | 23,682.5 | $ | 23,281.6 | |||||||||||||||
| Interest-Bearing Liabilities | ||||||||||||||||||||
| Interest-Bearing Deposits | ||||||||||||||||||||
| Demand | 3,773.4 | 7.1 | 0.76 | $ | 3,655.8 | 7.8 | 0.85 | $ | 3,764.2 | 7.7 | 0.82 | |||||||||
| Savings | 8,544.5 | 47.1 | 2.23 | 8,652.2 | 52.6 | 2.42 | 8,131.3 | 49.4 | 2.44 | |||||||||||
| Time | 3,037.3 | 27.5 | 3.67 | 3,142.8 | 31.7 | 4.02 | 3,081.1 | 32.0 | 4.18 | |||||||||||
| Total Interest-Bearing Deposits | 15,355.2 | 81.7 | 2.16 | 15,450.8 | 92.1 | 2.37 | 14,976.6 | 89.1 | 2.39 | |||||||||||
| Securities Sold Under Agreements to Repurchase | 76.7 | 0.7 | 3.88 | 100.2 | 1.0 | 3.87 | 150.5 | 1.4 | 3.79 | |||||||||||
| Other Debt | 578.2 | 6.1 | 4.24 | 558.3 | 5.9 | 4.24 | 560.1 | 5.9 | 4.25 | |||||||||||
| Total Interest-Bearing Liabilities | 16,010.1 | 88.5 | 2.24 | 16,109.3 | 99.0 | 2.45 | 15,687.2 | 96.4 | 2.47 | |||||||||||
| Net Interest Income | $ | 127.3 | $ | 121.5 | $ | 114.6 | ||||||||||||||
| Interest Rate Spread | 1.71 | % | 1.52 | % | 1.42 | % | ||||||||||||||
| Net Interest Margin | 2.32 | % | 2.19 | % | 2.11 | % | ||||||||||||||
| Noninterest-Bearing Demand Deposits | 5,314.3 | 5,305.9 | 5,567.0 | |||||||||||||||||
| Other Liabilities | 638.1 | 613.1 | 611.3 | |||||||||||||||||
| Shareholders' Equity | 1,675.6 | 1,654.2 | 1,416.1 | |||||||||||||||||
| Total Liabilities and Shareholders' Equity | 23,638.1 | $ | 23,682.5 | $ | 23,281.6 | |||||||||||||||
| 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 1.5 million, 1.3 million, and 690 thousand | ||||||||||||||||||||
| for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. | ||||||||||||||||||||
| 3 Non-performing loans and leases are included in the respective average loan and lease balances. |
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 March 31, 2025 | |||||||||
| Compared to December 31, 2024 | |||||||||
| (dollars in millions) | Volume 1 | Rate 1 | Total | ||||||
| Change in Interest Income: | |||||||||
| Cash and Cash Equivalents | $ | (3.3 | ) | $ | (0.5 | ) | $ | (3.9 | ) |
| Investment Securities | |||||||||
| Available-for-Sale | |||||||||
| Taxable | 1.3 | (0.2 | ) | 1.1 | |||||
| Non-Taxable | (0.0 | ) | (0.0 | ) | (0.0 | ) | |||
| Held-to-Maturity | |||||||||
| Taxable | (0.3 | ) | 0.0 | (0.3 | ) | ||||
| Non-Taxable | (0.0 | ) | (0.0 | ) | (0.0 | ) | |||
| Total Investment Securities | 1.0 | (0.2 | ) | 0.8 | |||||
| Loans Held for Sale | (0.0 | ) | 0.0 | (0.0 | ) | ||||
| Loans and Leases | |||||||||
| Commercial Mortgage | 1.1 | (0.6 | ) | 0.5 | |||||
| Commercial and Industrial | 0.0 | (0.9 | ) | (0.8 | ) | ||||
| Construction | (0.3 | ) | (0.4 | ) | (0.6 | ) | |||
| Commercial Lease Financing | 0.1 | 0.1 | 0.2 | ||||||
| Residential Mortgage | 0.1 | (0.5 | ) | (0.5 | ) | ||||
| Home Equity | (0.4 | ) | 0.4 | (0.0 | ) | ||||
| Automobile | (0.4 | ) | 0.1 | (0.2 | ) | ||||
| Other | (0.1 | ) | (0.1 | ) | (0.1 | ) | |||
| Total Loans and Leases | 0.2 | (1.7 | ) | (1.5 | ) | ||||
| Other | 0.0 | (0.0 | ) | (0.0 | ) | ||||
| Total Change in Interest Income | (2.2 | ) | (2.5 | ) | (4.7 | ) | |||
| Change in Interest Expense: | |||||||||
| Interest-Bearing Deposits | |||||||||
| Demand | 0.2 | (0.9 | ) | (0.7 | ) | ||||
| Savings | (0.8 | ) | (4.7 | ) | (5.5 | ) | |||
| Time | (1.2 | ) | (3.0 | ) | (4.2 | ) | |||
| Total Interest-Bearing Deposits | (1.8 | ) | (8.6 | ) | (10.4 | ) | |||
| Securities Sold Under Agreements to Repurchase | (0.2 | ) | 0.0 | (0.2 | ) | ||||
| Other Debt | 0.1 | 0.1 | 0.2 | ||||||
| Total Change in Interest Expense | (1.9 | ) | (8.6 | ) | (10.5 | ) | |||
| Change in Net Interest Income | $ | (0.3 | ) | $ | 6.0 | $ | 5.8 | ||
| 1 The change in interest income and expense due to both volume and rate has been allocated between the factors in proportion to the relationship of the absolute dollar amounts of the change in each. | |||||||||
| Bank of Hawai‘i Corporation and Subsidiaries | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Analysis of Change in Net Interest Income - Taxable-Equivalent Basis | Table 8b | ||||||||
| Three Months Ended March 31, 2025 | |||||||||
| Compared to March 31, 2024 | |||||||||
| (dollars in millions) | Volume 1 | Rate 1 | Total | ||||||
| Change in Interest Income: | |||||||||
| Cash and Cash Equivalents | $ | 0.5 | $ | (1.1 | ) | $ | (0.6 | ) | |
| Investment Securities | |||||||||
| Available-for-Sale | |||||||||
| Taxable | 3.5 | (1.2 | ) | 2.3 | |||||
| Non-Taxable | 0.3 | - | 0.3 | ||||||
| Held-to-Maturity | |||||||||
| Taxable | (1.6 | ) | (0.1 | ) | (1.7 | ) | |||
| Non-Taxable | (0.0 | ) | (0.0 | ) | (0.0 | ) | |||
| Total Investment Securities | 2.2 | (1.3 | ) | 0.9 | |||||
| Loans Held for Sale | 0.0 | (0.0 | ) | 0.0 | |||||
| Loans and Leases | |||||||||
| Commercial Mortgage | 3.6 | (1.6 | ) | 2.0 | |||||
| Commercial and Industrial | 0.6 | (1.3 | ) | (0.7 | ) | ||||
| Construction | 0.5 | (0.1 | ) | 0.4 | |||||
| Commercial Lease Financing | 0.4 | 0.2 | 0.6 | ||||||
| Residential Mortgage | (0.3 | ) | 0.1 | (0.2 | ) | ||||
| Home Equity | (1.0 | ) | 2.4 | 1.4 | |||||
| Automobile | (0.9 | ) | 1.3 | 0.4 | |||||
| Other | - | 0.6 | 0.6 | ||||||
| Total Loans and Leases | 2.9 | 1.6 | 4.5 | ||||||
| Other | - | (0.0 | ) | (0.0 | ) | ||||
| Total Change in Interest Income | 5.6 | (0.8 | ) | 4.8 | |||||
| Change in Interest Expense: | |||||||||
| Interest-Bearing Deposits | |||||||||
| Demand | - | (0.6 | ) | (0.6 | ) | ||||
| Savings | 2.3 | (4.6 | ) | (2.3 | ) | ||||
| Time | (0.5 | ) | (4.0 | ) | (4.5 | ) | |||
| Total Interest-Bearing Deposits | 1.8 | (9.2 | ) | (7.4 | ) | ||||
| Securities Sold Under Agreements to Repurchase | (0.7 | ) | - | (0.7 | ) | ||||
| Other Debt | 0.1 | 0.1 | 0.2 | ||||||
| Total Change in Interest Expense | 1.2 | (9.1 | ) | (7.9 | ) | ||||
| Change in Net Interest Income | $ | 4.4 | $ | 8.3 | $ | 12.7 | |||
| 1 The change in interest income and expense due to both volume and rate has been allocated between the factors in proportion to the relationship of the absolute dollar amounts of the change in each. | |||||||||
| Bank of Hawai‘i Corporation and Subsidiaries | |||||||||
| --- | --- | --- | --- | --- | --- | --- | |||
| Salaries and Benefits | |||||||||
| (dollars in thousands) | |||||||||
| Salaries | 38,242 | 38,852 | 38,031 | ||||||
| Incentive Compensation | 5,573 | 4,423 | 3,090 | ||||||
| Retirement and Other Benefits | 5,061 | 3,456 | 4,299 | ||||||
| Payroll Taxes | 4,766 | 2,593 | 4,730 | ||||||
| Medical, Dental, and Life Insurance | 4,537 | 4,965 | 3,212 | ||||||
| Share-Based Compensation | 3,501 | 3,208 | 3,799 | ||||||
| Commission Expense | 1,123 | 1,085 | 572 | ||||||
| Separation Expense | 81 | 108 | 482 | ||||||
| Total Salaries and Benefits | 62,884 | 58,690 | 58,215 |
All values are in US Dollars.
| Bank of Hawai‘i Corporation and Subsidiaries | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Loan and Lease Portfolio Balances | Table 10 | |||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Commercial | ||||||||||||||||||||
| Commercial Mortgage | $ | 4,038,287 | $ | 4,020,622 | $ | 3,868,566 | $ | 3,741,140 | $ | 3,715,032 | ||||||||||
| Commercial and Industrial | 1,703,290 | 1,705,133 | 1,681,693 | 1,699,438 | 1,679,659 | |||||||||||||||
| Construction | 363,716 | 308,898 | 319,150 | 315,571 | 323,069 | |||||||||||||||
| Lease Financing | 92,456 | 90,756 | 60,665 | 59,388 | 57,817 | |||||||||||||||
| Total Commercial | 6,197,749 | 6,125,409 | 5,930,074 | 5,815,537 | 5,775,577 | |||||||||||||||
| Consumer | ||||||||||||||||||||
| Residential Mortgage | 4,630,876 | 4,628,283 | 4,622,677 | 4,595,586 | 4,616,900 | |||||||||||||||
| Home Equity | 2,144,955 | 2,165,514 | 2,195,844 | 2,221,073 | 2,240,946 | |||||||||||||||
| Automobile | 740,390 | 764,146 | 786,910 | 806,240 | 825,854 | |||||||||||||||
| Other | 401,353 | 392,628 | 383,078 | 392,830 | 394,560 | |||||||||||||||
| Total Consumer | 7,917,574 | 7,950,571 | 7,988,509 | 8,015,729 | 8,078,260 | |||||||||||||||
| Total Loans and Leases | $ | 14,115,323 | $ | 14,075,980 | $ | 13,918,583 | $ | 13,831,266 | $ | 13,853,837 | ||||||||||
| Deposits | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Consumer | $ | 10,522,627 | $ | 10,397,777 | $ | 10,340,466 | $ | 10,382,432 | $ | 10,429,004 | ||||||||||
| Commercial | 8,411,838 | 8,299,590 | 8,356,239 | 7,995,618 | 8,323,330 | |||||||||||||||
| Public and Other | 2,073,752 | 1,935,670 | 2,281,617 | 2,030,452 | 1,924,252 | |||||||||||||||
| Total Deposits | $ | 21,008,217 | $ | 20,633,037 | $ | 20,978,322 | $ | 20,408,502 | $ | 20,676,586 | ||||||||||
| Average Deposits | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Consumer | $ | 10,408,747 | $ | 10,327,928 | $ | 10,345,772 | $ | 10,379,724 | $ | 10,313,730 | ||||||||||
| Commercial | 8,318,182 | 8,564,213 | 8,207,310 | 8,188,685 | 8,334,540 | |||||||||||||||
| Public and Other | 1,942,610 | 1,864,541 | 1,931,309 | 1,789,984 | 1,895,370 | |||||||||||||||
| Total Deposits | $ | 20,669,539 | $ | 20,756,682 | $ | 20,484,391 | $ | 20,358,393 | $ | 20,543,640 | ||||||||||
| Bank of Hawai‘i 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) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Non-Performing Assets | ||||||||||||||||||||
| Non-Accrual Loans and Leases | ||||||||||||||||||||
| Commercial | ||||||||||||||||||||
| Commercial Mortgage | $ | 2,195 | $ | 2,450 | $ | 2,680 | $ | 2,601 | $ | 2,714 | ||||||||||
| Commercial and Industrial | 3,451 | 4,627 | 6,218 | 3,681 | 13 | |||||||||||||||
| Total Commercial | 5,646 | 7,077 | 8,898 | 6,282 | 2,727 | |||||||||||||||
| Consumer | ||||||||||||||||||||
| Residential Mortgage | 4,686 | 5,052 | 4,269 | 2,998 | 3,199 | |||||||||||||||
| Home Equity | 5,759 | 4,514 | 3,947 | 3,227 | 3,240 | |||||||||||||||
| Total Consumer | 10,445 | 9,566 | 8,216 | 6,225 | 6,439 | |||||||||||||||
| Total Non-Accrual Loans and Leases | 16,091 | 16,643 | 17,114 | 12,507 | 9,166 | |||||||||||||||
| Foreclosed Real Estate | 1,360 | 2,657 | 2,667 | 2,672 | 2,672 | |||||||||||||||
| Total Non-Performing Assets | $ | 17,451 | $ | 19,300 | $ | 19,781 | $ | 15,179 | $ | 11,838 | ||||||||||
| Accruing Loans and Leases Past Due 90 Days or More | ||||||||||||||||||||
| Consumer | ||||||||||||||||||||
| Residential Mortgage | $ | 3,895 | $ | 3,984 | $ | 4,421 | $ | 4,524 | $ | 3,378 | ||||||||||
| Home Equity | 2,228 | 2,845 | 1,980 | 2,025 | 1,580 | |||||||||||||||
| Automobile | 486 | 776 | 580 | 568 | 517 | |||||||||||||||
| Other | 943 | 677 | 554 | 733 | 872 | |||||||||||||||
| Total Consumer | 7,552 | 8,282 | 7,535 | 7,850 | 6,347 | |||||||||||||||
| Total Accruing Loans and Leases Past Due 90 Days or More | $ | 7,552 | $ | 8,282 | $ | 7,535 | $ | 7,850 | $ | 6,347 | ||||||||||
| Total Loans and Leases | $ | 14,115,323 | $ | 14,075,980 | $ | 13,918,583 | $ | 13,831,266 | $ | 13,853,837 | ||||||||||
| Ratio of Non-Accrual Loans and Leases to Total Loans and Leases | 0.11 | % | 0.12 | % | 0.12 | % | 0.09 | % | 0.07 | % | ||||||||||
| Ratio of Non-Performing Assets to Total Loans and Leases | ||||||||||||||||||||
| and Foreclosed Real Estate | 0.12 | % | 0.14 | % | 0.14 | % | 0.11 | % | 0.09 | % | ||||||||||
| Ratio of Non-Performing Assets to Total Assets | 0.07 | % | 0.08 | % | 0.08 | % | 0.07 | % | 0.05 | % | ||||||||||
| Ratio of Commercial Non-Performing Assets to Total Commercial Loans | ||||||||||||||||||||
| and Leases and Commercial Foreclosed Real Estate | 0.09 | % | 0.12 | % | 0.15 | % | 0.11 | % | 0.05 | % | ||||||||||
| Ratio of Consumer Non-Performing Assets to Total Consumer Loans | ||||||||||||||||||||
| and Leases and Consumer Foreclosed Real Estate | 0.15 | % | 0.15 | % | 0.14 | % | 0.11 | % | 0.11 | % | ||||||||||
| 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 | 0.18 | % | 0.20 | % | 0.20 | % | 0.17 | % | 0.13 | % | ||||||||||
| Quarter to Quarter Changes in Non-Performing Assets | ||||||||||||||||||||
| Balance at Beginning of Quarter | $ | 19,300 | $ | 19,781 | $ | 15,179 | $ | 11,838 | $ | 11,747 | ||||||||||
| Additions 1 | 2,209 | 2,198 | 5,557 | 5,257 | 1,652 | |||||||||||||||
| Reductions | ||||||||||||||||||||
| Payments | (1,212 | ) | (708 | ) | (734 | ) | (844 | ) | (921 | ) | ||||||||||
| Return to Accrual Status | (244 | ) | (476 | ) | (81 | ) | (1,018 | ) | (617 | ) | ||||||||||
| Sales of Foreclosed Real Estate | (1,492 | ) | - | - | - | - | ||||||||||||||
| Charge-offs / Write-downs 1 | (1,110 | ) | (1,495 | ) | (140 | ) | (54 | ) | (23 | ) | ||||||||||
| Total Reductions | (4,058 | ) | (2,679 | ) | (955 | ) | (1,916 | ) | (1,561 | ) | ||||||||||
| Balance at End of Quarter | $ | 17,451 | $ | 19,300 | $ | 19,781 | $ | 15,179 | $ | 11,838 | ||||||||||
| 1 Excludes loans that are fully charged-off and placed on non-accrual status during the same period. | ||||||||||||||||||||
| Bank of Hawai‘i Corporation and Subsidiaries | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||
| Reserve for Credit Losses | Table 12 | |||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | March 31, | ||||||||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2024 | |||||||||||||||||
| Balance at Beginning of Period | $ | 150,649 | $ | 150,325 | $ | 152,429 | ||||||||||||||
| Loans and Leases Charged-Off | ||||||||||||||||||||
| Commercial | ||||||||||||||||||||
| Commercial and Industrial | (1,399 | ) | (353 | ) | (360 | ) | ||||||||||||||
| Consumer | ||||||||||||||||||||
| Residential Mortgage | - | (337 | ) | - | ||||||||||||||||
| Home Equity | (75 | ) | (339 | ) | (35 | ) | ||||||||||||||
| Automobile | (1,751 | ) | (1,548 | ) | (1,048 | ) | ||||||||||||||
| Other | (2,484 | ) | (2,637 | ) | (2,312 | ) | ||||||||||||||
| Total Loans and Leases Charged-Off | (5,709 | ) | (5,214 | ) | (3,755 | ) | ||||||||||||||
| Recoveries on Loans and Leases Previously Charged-Off | ||||||||||||||||||||
| Commercial | ||||||||||||||||||||
| Commercial and Industrial | 77 | 387 | 116 | |||||||||||||||||
| Consumer | ||||||||||||||||||||
| Residential Mortgage | 11 | 150 | 42 | |||||||||||||||||
| Home Equity | 128 | 177 | 184 | |||||||||||||||||
| Automobile | 633 | 609 | 526 | |||||||||||||||||
| Other | 457 | 465 | 606 | |||||||||||||||||
| Total Recoveries on Loans and Leases Previously Charged-Off | 1,306 | 1,788 | 1,474 | |||||||||||||||||
| Net Charged-Off Loans and Leases | (4,403 | ) | (3,426 | ) | (2,281 | ) | ||||||||||||||
| Provision for Credit Losses: | ||||||||||||||||||||
| Loans and Leases | 3,582 | 4,623 | 3,542 | |||||||||||||||||
| Unfunded Commitments | (332 | ) | (873 | ) | (1,542 | ) | ||||||||||||||
| Total Provision for Credit Losses | 3,250 | 3,750 | 2,000 | |||||||||||||||||
| Balance at End of Period | $ | 149,496 | $ | 150,649 | $ | 152,148 | ||||||||||||||
| Components | ||||||||||||||||||||
| Allowance for Credit Losses - Loans and Leases | $ | 147,707 | $ | 148,528 | $ | 147,664 | ||||||||||||||
| Reserve for Unfunded Commitments | 1,789 | 2,121 | 4,484 | |||||||||||||||||
| Total Reserve for Credit Losses | $ | 149,496 | $ | 150,649 | $ | 152,148 | ||||||||||||||
| Average Loans and Leases Outstanding | $ | 14,062,173 | $ | 13,964,687 | $ | 13,868,800 | ||||||||||||||
| Ratio of Net Loans and Leases Charged-Off to | ||||||||||||||||||||
| Average Loans and Leases Outstanding (annualized) | 0.13 | % | 0.10 | % | 0.07 | % | ||||||||||||||
| Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 1 | 1.05 | % | 1.06 | % | 1.07 | % | ||||||||||||||
| 1 The numerator comprises the Allowance for Credit Losses - Loans and Leases. | ||||||||||||||||||||
| Bank of Hawai‘i 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, 2025 | ||||||||||||||||||||
| Net Interest Income (Expense) | $ | 95,624 | $ | 55,574 | $ | (25,391 | ) | $ | 125,807 | |||||||||||
| Provision for (Recapture of) Credit Losses | 3,295 | 1,108 | (1,153 | ) | 3,250 | |||||||||||||||
| Net Interest Income (Expense) After Provision for Credit Losses | 92,329 | 54,466 | (24,238 | ) | 122,557 | |||||||||||||||
| Noninterest Income | 33,498 | 7,734 | 2,826 | 44,058 | ||||||||||||||||
| Salaries and Benefits | 21,105 | 5,360 | 36,419 | 62,884 | ||||||||||||||||
| Net Occupancy | 7,067 | 400 | 3,092 | 10,559 | ||||||||||||||||
| Other Noninterest Expense | 58,202 | 13,882 | (35,068 | ) | 37,016 | |||||||||||||||
| Noninterest Expense | 86,374 | 19,642 | 4,443 | 110,459 | ||||||||||||||||
| Income (Loss) Before Income Taxes | 39,453 | 42,558 | (25,855 | ) | 56,156 | |||||||||||||||
| Provision (Benefit) for Income Taxes | 10,001 | 10,869 | (8,699 | ) | 12,171 | |||||||||||||||
| Net Income (Loss) | $ | 29,452 | $ | 31,689 | $ | (17,156 | ) | $ | 43,985 | |||||||||||
| Total Assets as of March 31, 2025 | $ | 8,246,158 | $ | 6,219,971 | $ | 9,418,927 | $ | 23,885,056 | ||||||||||||
| Three Months March 31, 2024 1 | ||||||||||||||||||||
| Net Interest Income (Expense) | $ | 96,994 | $ | 51,493 | $ | (34,549 | ) | $ | 113,938 | |||||||||||
| Provision for (Recapture of) Credit Losses | 2,287 | (6 | ) | (281 | ) | 2,000 | ||||||||||||||
| Net Interest Income (Expense) After Provision for Credit Losses | 94,707 | 51,499 | (34,268 | ) | 111,938 | |||||||||||||||
| Noninterest Income | 31,982 | 6,794 | 3,509 | 42,285 | ||||||||||||||||
| Salaries and Benefits | 20,917 | 5,516 | 31,782 | 58,215 | ||||||||||||||||
| Net Occupancy | 6,864 | 447 | 3,145 | 10,456 | ||||||||||||||||
| Other Noninterest Expense | 54,924 | 12,680 | (30,416 | ) | 37,188 | |||||||||||||||
| Noninterest Expense | 82,705 | 18,643 | 4,511 | 105,859 | ||||||||||||||||
| Income (Loss) Before Income Taxes | 43,984 | 39,650 | (35,270 | ) | 48,364 | |||||||||||||||
| Provision (Benefit) for Income Taxes | 11,181 | 10,008 | (9,216 | ) | 11,973 | |||||||||||||||
| Net Income (Loss) | $ | 32,803 | $ | 29,642 | $ | (26,054 | ) | $ | 36,391 | |||||||||||
| Total Assets as of March 31, 2024 | $ | 8,396,623 | $ | 5,830,056 | $ | 9,194,181 | $ | 23,420,860 | ||||||||||||
| 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 | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| (dollars in thousands, except per share amounts) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Quarterly Operating Results | ||||||||||||||||||||
| Interest Income | ||||||||||||||||||||
| Interest and Fees on Loans and Leases | $ | 163,082 | $ | 164,785 | $ | 166,286 | $ | 163,208 | $ | 159,336 | ||||||||||
| Income on Investment Securities | ||||||||||||||||||||
| Available-for-Sale | 24,368 | 23,223 | 23,257 | 21,468 | 21,757 | |||||||||||||||
| Held-to-Maturity | 20,291 | 20,677 | 21,107 | 21,595 | 22,136 | |||||||||||||||
| Cash and Cash Equivalents | 5,460 | 9,425 | 8,980 | 6,139 | 6,157 | |||||||||||||||
| Other | 1,085 | 1,107 | 1,018 | 1,120 | 970 | |||||||||||||||
| Total Interest Income | 214,286 | 219,217 | 220,648 | 213,530 | 210,356 | |||||||||||||||
| Interest Expense | ||||||||||||||||||||
| Deposits | 81,692 | 92,099 | 96,067 | 91,542 | 89,056 | |||||||||||||||
| Securities Sold Under Agreements to Repurchase | 744 | 992 | 993 | 1,180 | 1,443 | |||||||||||||||
| Other Debt | 6,043 | 5,948 | 5,970 | 5,962 | 5,919 | |||||||||||||||
| Total Interest Expense | 88,479 | 99,039 | 103,030 | 98,684 | 96,418 | |||||||||||||||
| Net Interest Income | 125,807 | 120,178 | 117,618 | 114,846 | 113,938 | |||||||||||||||
| Provision for Credit Losses | 3,250 | 3,750 | 3,000 | 2,400 | 2,000 | |||||||||||||||
| Net Interest Income After Provision for Credit Losses | 122,557 | 116,428 | 114,618 | 112,446 | 111,938 | |||||||||||||||
| Noninterest Income | ||||||||||||||||||||
| Fees, Exchange, and Other Service Charges | 14,437 | 14,399 | 14,945 | 13,769 | 14,123 | |||||||||||||||
| Trust and Asset Management | 11,741 | 12,157 | 11,916 | 12,223 | 11,189 | |||||||||||||||
| Service Charges on Deposit Accounts | 8,259 | 8,678 | 8,075 | 7,730 | 7,947 | |||||||||||||||
| Bank-Owned Life Insurance | 3,611 | 3,283 | 3,533 | 3,396 | 3,356 | |||||||||||||||
| Annuity and Insurance | 1,555 | 1,347 | 1,460 | 1,583 | 1,046 | |||||||||||||||
| Mortgage Banking | 988 | 942 | 1,188 | 1,028 | 951 | |||||||||||||||
| Investment Securities Losses, Net | (1,607 | ) | (3,306 | ) | (1,103 | ) | (1,601 | ) | (1,497 | ) | ||||||||||
| Other | 5,074 | 5,547 | 5,096 | 3,959 | 5,170 | |||||||||||||||
| Total Noninterest Income | 44,058 | 43,047 | 45,110 | 42,087 | 42,285 | |||||||||||||||
| Noninterest Expense | ||||||||||||||||||||
| Salaries and Benefits | 62,884 | 58,690 | 58,626 | 57,033 | 58,215 | |||||||||||||||
| Net Occupancy | 10,559 | 10,263 | 10,806 | 10,559 | 10,456 | |||||||||||||||
| Net Equipment | 10,192 | 10,308 | 10,120 | 10,355 | 10,103 | |||||||||||||||
| Data Processing | 5,267 | 5,313 | 4,712 | 4,745 | 4,770 | |||||||||||||||
| Professional Fees | 4,264 | 4,988 | 4,725 | 4,929 | 4,677 | |||||||||||||||
| FDIC Insurance | 1,642 | 3,711 | 3,355 | 7,170 | 3,614 | |||||||||||||||
| Other | 15,651 | 14,658 | 14,748 | 14,435 | 14,024 | |||||||||||||||
| Total Noninterest Expense | 110,459 | 107,931 | 107,092 | 109,226 | 105,859 | |||||||||||||||
| Income Before Provision for Income Taxes | 56,156 | 51,544 | 52,636 | 45,307 | 48,364 | |||||||||||||||
| Provision for Income Taxes | 12,171 | 12,382 | 12,278 | 11,224 | 11,973 | |||||||||||||||
| Net Income | $ | 43,985 | $ | 39,162 | $ | 40,358 | $ | 34,083 | $ | 36,391 | ||||||||||
| Preferred Stock Dividends | 5,269 | 5,269 | 3,436 | 1,969 | 1,969 | |||||||||||||||
| Net Income Available to Common Shareholders | $ | 38,716 | $ | 33,893 | $ | 36,922 | $ | 32,114 | $ | 34,422 | ||||||||||
| Basic Earnings Per Common Share | $ | 0.98 | $ | 0.86 | $ | 0.94 | $ | 0.81 | $ | 0.87 | ||||||||||
| Diluted Earnings Per Common Share | $ | 0.97 | $ | 0.85 | $ | 0.93 | $ | 0.81 | $ | 0.87 | ||||||||||
| Balance Sheet Totals | ||||||||||||||||||||
| Loans and Leases | $ | 14,115,323 | $ | 14,075,980 | $ | 13,918,583 | $ | 13,831,266 | $ | 13,853,837 | ||||||||||
| Total Assets | 23,885,056 | 23,601,114 | 23,799,174 | 23,300,768 | 23,420,860 | |||||||||||||||
| Total Deposits | 21,008,217 | 20,633,037 | 20,978,322 | 20,408,502 | 20,676,586 | |||||||||||||||
| Total Shareholders' Equity | 1,704,935 | 1,667,774 | 1,665,474 | 1,612,849 | 1,435,977 | |||||||||||||||
| Performance Ratios | ||||||||||||||||||||
| Return on Average Assets | 0.75 | % | 0.66 | % | 0.69 | % | 0.59 | % | 0.63 | % | ||||||||||
| Return on Average Shareholders' Equity | 10.65 | 9.42 | 9.90 | 9.53 | 10.34 | |||||||||||||||
| Return on Average Common Equity | 11.80 | 10.30 | 11.50 | 10.41 | 11.20 | |||||||||||||||
| Efficiency Ratio 1 | 65.03 | 66.12 | 65.81 | 69.60 | 67.76 | |||||||||||||||
| Net Interest Margin 2 | 2.32 | 2.19 | 2.18 | 2.15 | 2.11 | |||||||||||||||
| 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. | ||||||||||||||||||||
| Bank of Hawai‘i Corporation and Subsidiaries | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Hawaii Economic Trends | Table 15 | |||||||||||||||||||
| Two Months Ended | Year Ended | |||||||||||||||||||
| (dollars in millions, jobs in thousands, 1-year percentage change) | February 28, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||||
| Hawaii Economic Trends | ||||||||||||||||||||
| State General Fund Revenues 1 | $ | 1,489.1 | (7.1 | ) | % | $ | 10,124.9 | 6.5 | % | $ | 9,504.1 | 0.7 | % | |||||||
| General Excise and Use Tax Revenue 1 | 853.7 | 5.1 | 4,495.0 | 0.5 | 4,474.1 | 4.9 | ||||||||||||||
| Jobs 2 | 664.5 | 661.6 | 657.7 | |||||||||||||||||
| March 31, | December 31, | |||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Unemployment, seasonally adjusted 2 | ||||||||||||||||||||
| Statewide | 2.9 | % | 3.0 | % | 3.0 | % | ||||||||||||||
| Honolulu County | 2.8 | 2.9 | 2.5 | |||||||||||||||||
| Hawaii County | 3.1 | 3.4 | 2.8 | |||||||||||||||||
| Maui County | 3.1 | 3.7 | 5.8 | |||||||||||||||||
| Kauai County | 2.7 | 3.0 | 2.5 | |||||||||||||||||
| March 31, | December 31, | |||||||||||||||||||
| (1-year percentage change, except months of inventory) | 2025 | 2024 | 2023 | 2022 | ||||||||||||||||
| Housing Trends (Single Family Oahu) 3 | ||||||||||||||||||||
| Median Home Price | 7.5 | % | 4.8 | % | (5.0 | ) | % | 11.6 | % | |||||||||||
| Home Sales Volume (units) | (4.0 | ) | % | 9.1 | % | (26.3 | ) | % | (23.2 | ) | % | |||||||||
| Months of Inventory | 3.3 | 2.9 | 2.8 | 2.1 | ||||||||||||||||
| Monthly Visitor Arrivals, | Percentage Change | |||||||||||||||||||
| (in thousands, except percentage change) | Not Seasonally Adjusted | from Previous Year | ||||||||||||||||||
| Tourism 4 | ||||||||||||||||||||
| February 28, 2025 | 739.7 | (1.7 | ) | % | ||||||||||||||||
| January 31, 2025 | 773.1 | 3.7 | ||||||||||||||||||
| December 31, 2024 | 892.0 | 5.3 | ||||||||||||||||||
| November 30, 2024 | 762.7 | 5.7 | ||||||||||||||||||
| October 31, 2024 | 739.0 | 5.5 | ||||||||||||||||||
| September 30, 2024 | 688.8 | 6.3 | ||||||||||||||||||
| August 31, 2024 | 819.2 | 6.9 | ||||||||||||||||||
| July 31, 2024 | 925.3 | (0.5 | ) | |||||||||||||||||
| June 30, 2024 | 872.6 | (1.5 | ) | |||||||||||||||||
| May 31, 2024 | 757.8 | (4.1 | ) | |||||||||||||||||
| April 30, 2024 | 721.9 | (10.5 | ) | |||||||||||||||||
| March 31, 2024 | 843.5 | (5.5 | ) | |||||||||||||||||
| February 29, 2024 | 752.7 | 2.6 | ||||||||||||||||||
| January 31, 2024 | 745.6 | (3.8 | ) | |||||||||||||||||
| December 31, 2023 | 847.3 | (1.3 | ) | |||||||||||||||||
| November 30, 2023 | 721.3 | 0.3 | ||||||||||||||||||
| October 31, 2023 | 700.4 | (3.7 | ) | |||||||||||||||||
| September 30, 2023 | 648.1 | (6.4 | ) | |||||||||||||||||
| August 31, 2023 | 766.6 | (7.6 | ) | |||||||||||||||||
| July 31, 2023 | 930.2 | 1.3 | ||||||||||||||||||
| 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 | ||||||||||||||||||
| 1 Source: Hawaii Department of Business, Economic Development & Tourism | ||||||||||||||||||||
| 2 Source: U.S. Bureau of Labor Statistics | ||||||||||||||||||||
| 3 Source: Honolulu Board of Realtors | ||||||||||||||||||||
| 4 Source: Hawaii Tourism Authority |
Bank of Hawai‘i Corporation first quarter 2025 financial report April 21, 2025 Exhibit 99.2
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
diversified, lower risk loan assets first quarter 2025 highlights broad & deep market penetration stable balance sheet performance earnings highlights strong credit credit remained pristine period end total deposits increased 7.3% annualized and total loans and leases increased by 1.1% annualized stable average noninterest-bearing demand deposit and low yield interest-bearing deposit balances tier 1 capital ratio of 13.93% and total capital ratio of 14.97% $0.97 diluted earnings per common share $44.0 million net income net interest margin expanded for the fourth consecutive quarter to 2.32% from 2.19% average cost of total deposits decreased to 1.60% from 1.77% 11.80% return on average common equity 0.13% net charge-off rate 0.12% non-performing assets level 79% of loan portfolio real estate-secured with combined wtd avg LTV of 51% nominal direct tariff exposure
leader in a unique deposit market source: FDIC Annual Summary of Deposits as of June 30, 2019, June 30, 2023 and June 30, 2024 the leader in a unique deposit market with five local competitors holding 96% of the bank deposit market
stable deposit balances $ in billions note: numbers may not add up due to rounding
∆ NIBD and low yield interest-bearing deposits $ in billions note: low yield interest-bearing deposits include accounts yielding interest of 10 bps or less
cost of funds interest-bearing deposits source: S&P Capital IQ; KBW Regional Banking Index (KRX)
cost of funds total deposits source: S&P Capital IQ; KBW Regional Banking Index (KRX)
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 9
10 visitor arrivals monthly by market, indexed to January 2017 source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT)
revenue per available room revenue per available room (RevPAR) source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT)
single family homes condominiums YTD-25 YTD-24 Δ YTD-24 YTD-25 YTD-24 Δ YTD-24 median sales price (000s) $1,150 $1,070 7.5% $510 $505 1.0% closed sales 569 593 -4.0% 974 970 0.4% median days on market 20 29 9 days 43 32 11 days stable real estate prices Oahu market indicators – YTD 2025 as of March 2025 source: Honolulu Board of Realtors, compiled from MLS data
credit performance
lending philosophy note: as of March 31, 2025 we lend in our core markets to long-standing relationships
consumer portfolio 56% of total loans asset type % total consumer % total loans WALTV wtd avg FICO residential mortgage 58% 33% 49% 804 home equity 27% 15% 46% 789 real estate secured 86% 48% 48% 799 automobile 9% 5% n/a 731 other consumer 5% 3% n/a 759 total consumer 100% 56% n/a 791 note: $ in billions; numbers may not add up due to rounding other consumer comprised of consumer revolving credit, installment, and consumer lease financing wtd avg monitoring FICO for other consumer utilizes origination FICO for consumer lease financing $7.9B consumer
commercial portfolio residential mortgage home equity 44% of total loans $6.2B commercial asset type % total comml % total loans WALTV commercial real estate 65% 29% 55% construction 6% 3% 56% real estate secured 71% 31% 55% commercial & industrial 27% 12% n/a leasing 1% 1% n/a total commercial 100% 44% n/a note: $ in billions; numbers may not add up due to rounding
vacancy inventory (sq ft) 4Q24 4Q23 10 yr avg 10 yr CAGR industrial 0.93% 0.64% 1.63% 0.63% office 12.73% 13.45% 12.42% -1.01% retail 5.71% 6.02% 6.08% 0.72% multi-family 3.88% 4.03% 4.77% 0.73% Oahu market vacancies and inventory note: 10-year average vacancy and 10-yr CAGR for inventory are based on year-end 2014 through 2024 source: Colliers (industrial, office, retail) and CoStar (multi-family) stable real estate market
commercial real estate (CRE) residential mortgage home equity 29% of total loans asset type WALTV avg. exposure ($MMs) multi-family 56% 3.3 industrial 55% 2.5 lodging 53% 14.7 retail 54% 4.4 office 56% 1.8 other 54% 3.7 total CRE 55% 3.5 note: % in chart above is % of total loans
CRE scheduled maturities modest near-term maturities
CRE loan balances by LTV LTV > 80% - $75MM, 1.9% of CRE
commercial & industrial residential mortgage home equity 12% of total loans note: % in chart above is % of total loans asset type % leveraged avg. exposure ($MMs) AOAO 0% 1.8 RE investors 0% 1.2 auto dealers 18% 5.0 lodging 19% 5.2 renewable energy 0% 3.0 healthcare 0% 0.5 educational svcs 0% 2.0 transportation 0% 1.2 other 6% 0.3 total C&I 4% 0.6
credit quality 1 75% of total criticized is secured with 54% wtd avg LTV 1
financial update
NII and NIM trends increasing NII and NIM $ in millions
cashflow repricing total quarterly impact to NII from cashflows repricing: +$3.7 million $ in millions note: +$3.7 million in quarterly impact from cashflows repricing assumes that the cashflows from maturities/prepayments from loans were reinvested into the same products and the cashflows from maturities/prepayments from investment portfolio were reinvested into securities at an average rate of 5.5%, equivalent to average yield at the time of purchase of the securities purchased in 1Q25; numbers may not add up due to rounding
deposit mix shift and repricing quarterly NII impact from deposit mix shift and repricing in 1Q25: $(0.3) million $ in millions note: low yield interest-bearing deposits include accounts yielding interest of 10 bps or less
decrease in cost of deposits decrease in total deposit and interest-bearing deposit costs note: low-yield accounts are accounts yielding interest of 10 bps or less
time deposits time deposit rates continue to decrease note: maturity schedule as of March 31, 2025 time deposit maturity schedule time deposit rates
optimizing balance sheet note: swaps in ‘earning asset composition’ and ‘swap composition’ does not include $300 million of forward swaps; ‘securities purchases / sales’ do not include stock and PCLI purchases
rate sensitive earning assets and interest-bearing deposits note: loans, investments, swap and FF sold balances are as of March 31, 2025; rate sensitive deposit balances are 1Q25 average balances; low-yield accounts are accounts yielding interest of 10 bps or less; all qualified business money management checking accounts are included in ‘IBD excl. low-yield accounts’; numbers may not add up due to rounding rate sensitive earning assets rate sensitive interest-bearing deposits $7.4B $10.2B balance sheet well-positioned for a range of rate outcomes $ in billions
noninterest income and expense $ in millions increase in noninterest income and continued discipline in expense management
financial summary $ in millions, except per share amounts 1Q 2025 4Q 2024 1Q 2024 ∆ 4Q 2024 ∆ 1Q 2024 net interest income $ 125.8 $ 120.2 $ 113.9 $ 5.6 $ 11.9 noninterest income 44.1 43.0 42.3 1.0 1.8 total revenue 169.9 163.2 156.2 6.6 13.6 noninterest expense 110.5 107.9 105.9 2.5 4.6 operating income 59.4 55.3 50.4 4.1 9.0 credit provision 3.3 3.8 2.0 (0.5) 1.3 income taxes 12.2 12.4 12.0 (0.2) 0.2 net income $ 44.0 $ 39.2 $ 36.4 $ 4.8 $ 7.6 net income available to common $ 38.7 $ 33.9 $ 34.4 $ 4.8 $ 10.3 diluted EPS $ 0.97 $ 0.85 $ 0.87 $ 0.12 $ 0.10 return on assets 0.75 % 0.66 % 0.63 % 0.09 % 0.12 % return on average common equity 11.80 10.30 11.20 1.50 0.60 net interest margin 2.32 2.19 2.11 0.13 0.21 end of period balances investment portfolio $ 7,422 $ 7,308 $ 7,266 1.6 % 2.2 % loans and leases 14,115 14,076 13,854 0.3 1.9 total deposits 21,008 20,633 20,677 1.8 1.6 shareholders' equity 1,705 1,668 1,436 2.2 18.7 note: numbers may not add up due to rounding
capital note: 1Q25 regulatory capital ratios are preliminary 13.6% BOHC strong capital
NII and NIM increased for the fourth consecutive quarter exceptional credit quality and nominal direct tariff exposure strong liquidity and risk-based capital takeaways
Q & A
appendix
note: as of March 31, 2025, cash includes fed funds sold, interest-bearing deposits in other banks 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
insured/collateralized deposits note: as of March 31, 2025, numbers may not add up due to rounding
Oahu market inventory CRE supply constraints 10-yr CAGR: 0.6% 10-yr CAGR: -1.0% 10-yr CAGR: 0.7% 10-yr CAGR: 0.7% note: 10-yr CAGR for inventory are based on year-end 2014 through 2024 source: Colliers (industrial, office, retail) and CoStar (multi-family)
CRE office 3% of total loans 56% wtd avg LTV $1.8MM average exposure 24% CBD (Downtown Honolulu) - 63% wtd avg LTV - 45% with repayment guaranties 38% maturing prior to 2027 2.0% criticized highlights $378MM
CRE multi-family 7% of total loans 56% wtd avg LTV $3.3MM average exposure 99.2% LIHTC, affordable or market 17% maturing prior to 2027 5.6% criticized highlights $1.0B