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8-K

BANK OF HAWAII CORP (BOH)

8-K 2020-07-27 For: 2020-07-27
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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 July 27, 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 July 27, 2020, Bank of Hawaii Corporation announced its results of operations for the quarter ended June 30, 2020.  The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and incorporated herein by reference.

Item 9.01.                                       Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.

99.1 July 27, 2020 Press Release: Bank of Hawaii Corporation Second 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 Second Quarter 2020 Financial Results 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: July 27, 2020 Bank of Hawaii Corporation
By: /s/ Mark A. Rossi
Mark A. Rossi
Vice Chairman and Corporate Secretary

Document

Bank of Hawaii Corporation Second Quarter 2020 Financial Results

•Diluted Earnings Per Share $0.98

•Net Income $38.9 Million

•Board of Directors Approves Dividend of $0.67 Per Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (July 27, 2020) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.98 for the second quarter of 2020 compared with diluted earnings per share of $0.87 in the previous quarter and from diluted earnings per share of $1.40 in the same quarter last year. Net income for the second quarter of 2020 was $38.9 million compared with net income of $34.7 million in the first quarter of 2020 and net income of $56.9 million in the second quarter of 2019.

Loan and lease balances increased to $11.8 billion at June 30, 2020, up 4.0 percent from March 31, 2019 and up 9.7 percent compared with June 30, 2019. Total deposits reached a new record high of $17.4 billion at the end of the second quarter of 2020, up 8.5 percent from March 31, 2020 and up 12.5 percent compared with June 30, 2019.

“Bank of Hawaii Corporation continued to perform well in this very challenging environment,” said Peter Ho, Chairman, President and CEO. “Our balance sheet continued to grow while maintaining strong levels of capital and liquidity. Our asset quality remained stable during the quarter and we are well positioned for the future. During the quarter we reopened nine of our branches and our dedicated employees were able to support the needs of our customers and community during this unprecedented period.”

The return on average assets for the second quarter of 2020 was 0.82 percent, up from 0.77 percent in the previous quarter and down from 1.31 percent in the same quarter last year. The return on average equity for the second quarter of 2020 was 11.58 percent, up from 10.64 percent for the first quarter of 2020 and down from 17.97 percent for the second quarter of 2019. The efficiency ratio for the second quarter of 2020 improved to 49.95 percent compared with 55.96 percent in the previous quarter and 54.69 percent in the same quarter last year.

For the six-month period ended June 30, 2020, net income was $73.7 million, down from net income of $115.7 million during the same period last year. Diluted earnings per share were $1.85 for the first half of 2020 compared with diluted earnings per share of $2.82 for the first half of 2019.

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Bank of Hawaii Corporation Second Quarter 2020 Financial Results      Page 2

The return on average assets for the six-month period ended June 30, 2020 was 0.79 percent compared with the return on average assets of 1.34 percent for the same six months in 2019. The year-to-date return on average equity was 11.11 percent for the first half of 2020 compared with the return on average equity of 18.39 percent for the first half of 2019. The efficiency ratio for the first half of 2020 improved to 52.90 percent compared with 54.95 percent in the same period last year.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the second quarter of 2020 was $127.0 million, an increase of $0.7 million compared with $126.3 million in the first quarter of 2020 and an increase of $2.7 million compared with $124.3 million in the second quarter of 2019. Net interest income in the second quarter of 2020 included an interest recovery of $2.9 million. Net interest income, on a taxable equivalent basis, for the first half of 2020 was $253.4 million, an increase of $2.9 million compared with net interest income of $250.5 million for the first half of 2019. Analyses of the changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin was 2.83 percent for the second quarter of 2020, down 13 basis points from 2.96 percent in the previous quarter and down 21 basis points from the net interest margin of 3.04 percent in the second quarter of 2019. The decrease in the net interest margin is largely due to lower rates and higher levels of liquidity. The net interest margin for the first six months of 2020 was 2.90 percent compared with the net interest margin of 3.08 percent for the same six-month period last year.

Results for the second quarter of 2020 included a provision for credit losses of $40.4 million compared with $33.6 million in the previous quarter and $4.0 million in the same quarter last year. The provision for credit losses during the first half of 2020 was $74.0 million compared with a provision for credit losses of $7.0 million during the same period in 2019.

Noninterest income was $51.3 million in the second quarter of 2020, an increase of $5.2 million compared with $46.1 million in the first quarter of 2020 and an increase of $5.8 million compared with $45.5 million in the second quarter of 2019. Noninterest income during the second quarter of 2020 included a gain of $14.2 million related to a sale of Visa Class B shares. There were no significant items in noninterest income during the first quarter of 2020 or the second quarter of 2019. Adjusted for the sale of the Visa shares, the decline in noninterest income compared to the prior quarter was due to reductions in overdraft and ATM fees and lower customer derivative activity. Noninterest income for the first half of 2020 was $97.4 million, an increase of $8.3 million compared with noninterest income of $89.1 million for the first half of 2019.

Noninterest expense was $88.9 million in the second quarter of 2020, a decrease of $7.4 million compared with $96.3 million in the first quarter of 2020 and a decrease of $3.8 million compared with $92.7 million in the second quarter last year. There were no significant items in noninterest expense during the second quarter of 2020 or the second quarter of 2019. 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. Noninterest expense for the first half of 2020 was $185.2 million, a decrease of $0.6 million compared with noninterest expense of $185.8 million for the first half of 2019. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the second quarter of 2020 was 20.05 percent compared with 17.68 percent in the previous quarter and 21.84 percent in the same quarter last year. The effective tax rate for the first half of 2020 was 18.95 percent compared with an effective tax rate of 20.35 percent during the same period last year.

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Bank of Hawaii Corporation First Quarter 2020 Financial Results      Page 3

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

Asset Quality

The Company’s asset quality remained relatively stable during the second quarter of 2020. Total non-performing assets were $22.7 million at June 30, 2020 compared with $20.6 million at March 31, 2020 and $21.8 million at June 30, 2019. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.19 percent at the end of the second quarter of 2020 compared with 0.18 percent at the end of the first quarter of 2020 and 0.20 percent at the end of the second quarter last year.

Accruing loans and leases past due 90 days or more were $8.9 million at June 30, 2020 compared with $8.5 million at March 31, 2020 and $6.4 million at June 30, 2019. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $59.7 million at June 30, 2020, compared with $61.4 million at March 31, 2020 and $48.6 million at June 30, 2019. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loan and lease charge-offs during the second quarter of 2020 were $5.1 million or 0.18 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $8.3 million during the quarter were partially offset by recoveries of $3.2 million. Net charge-offs during the first quarter of 2020 were $3.7 million or 0.14 percent annualized of total average loans and leases outstanding and comprised of $7.2 million in charge-offs and recoveries of $3.4 million. Net charge-offs during the second quarter of 2019 were $2.4 million or 0.09 percent annualized of total average loans and leases outstanding and comprised of $5.1 million in charge-offs and recoveries of $2.8 million. Net charge-offs during the first half of 2020 were $8.9 million or 0.16 percent annualized of total average loans and leases outstanding compared with net charge-offs of $6.0 million or 0.12 percent annualized of total average loans and leases outstanding for the first half of 2019.

The allowance for credit losses was $173.4 million at June 30, 2020 compared with $138.2 million at March 31, 2020 and $107.7 million at June 30, 2019. The ratio of the allowance for credit losses to total loans and leases was 1.47 percent at June 30, 2020 compared with 1.22 percent at March 31, 2020 and 1.00 percent at June 30, 2019. The reserve for unfunded commitments was $2.5 million at June 30, 2020 compared with $3.3 million at March 31, 2020 and $6.8 million at June 30, 2019. Details of loan and lease charge-offs, recoveries and components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets increased to $19.8 billion at June 30, 2020 compared with $18.5 billion at March 31, 2020 and $17.7 billion at June 30, 2019. Average total assets were $19.2 billion during the second quarter of 2020 compared with $18.2 billion during the previous quarter and $17.5 billion during the second quarter last year.

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Bank of Hawaii Corporation First Quarter 2020 Financial Results       Page 4

The investment securities portfolio was $6.0 billion at June 30, 2020, up from $5.7 billion at March 31, 2020 and $5.6 billion at June 30, 2019. The portfolio remains largely comprised of securities issued by U.S. government agencies and includes $3.3 billion in securities held to maturity and $2.7 billion in securities available for sale. The securities portfolio at March 31, 2020 included $3.0 billion in securities held to maturity and $2.7 billion in securities available for sale compared with $3.0 billion in securities held to maturity and $2.6 billion in securities available for sale at June 30, 2019.

Total loans and leases were $11.8 billion at June 30, 2020, up from $11.4 billion at March 31, 2020 and $10.8 billion at June 30, 2019. Average total loans and leases increased to $11.7 billion during the second quarter of 2020 compared with $11.1 billion during the previous quarter and $10.6 billion during the same quarter last year. The commercial loan portfolio was $5.0 billion at June 30, 2020, up $492.2 million or 10.9 percent from commercial loans of $4.5 billion at March 31, 2020, and up $920.4 million or 22.4 percent from commercial loans of $4.1 billion at June 30, 2019. The consumer loan portfolio decreased to $6.8 billion at June 30, 2020, down $39.6 million or 0.6 percent from consumer loans of $6.8 billion at March 31, 2020 and increased $125.8 million or 1.9 percent from consumer loans of $6.7 billion at June 30, 2019. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $17.4 billion at June 30, 2020, up from $16.1 billion at March 31, 2020 and $15.5 billion at June 30, 2019. Average total deposits were $16.7 billion during the second quarter of 2020, up from $15.8 billion during the previous quarter and $15.2 billion during the same quarter last year. Consumer deposits increased to $8.8 billion at June 30, 2020, up $472.4 million or 5.7 percent from consumer deposits of $8.3 billion at March 31, 2020 and up $886.6 million or 11.3 percent from consumer deposits of $7.9 billion at June 30, 2019. Commercial deposits increased to $7.3 billion at June 30, 2020, up $936.5 million or 14.7 percent from commercial deposits of $6.4 billion at March 31, 2020 and up $1.1 billion or 18.1 percent from commercial deposits of $6.2 billion at June 30, 2019. Other deposits, including public funds, were $1.4 billion at June 30, 2020, down $41.1 million or 2.9 percent from March 31, 2020 and down $68.3 million or 4.8 percent from June 30, 2019. Deposit balances are summarized in Tables 7a, 7b, and 10.

Total shareholders’ equity increased to $1.4 billion at June 30, 2020 compared with $1.3 billion at March 31, 2020 and June 30, 2019. There were no shares repurchased during the second quarter of 2020. The Tier 1 Capital Ratio at June 30, 2020 was 12.04 percent compared with 11.81 percent at March 31, 2020 and 12.46 percent at June 30, 2019. The Tier 1 leverage ratio at June 30, 2020 was 6.90 percent compared with 7.12 percent at March 31, 2020 and 7.36 percent at June 30, 2019.

The Company’s Board of Directors declared a quarterly cash dividend of $0.67 per share on the Company’s outstanding shares. The dividend will be payable on September 15, 2020 to shareholders of record at the close of business on August 31, 2020.

Conference Call Information

The Company will review its second quarter 2020 financial results today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time). The conference call including presentation materials will be accessible via teleconference and via the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. The 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, July 27, 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 5959108 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, and other statements made by the Company in connection with it may contain "forward-looking statements", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2019, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.

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

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Bank of Hawaii Corporation and Subsidiaries
Financial Highlights Table 1
Three Months Ended Six Months Ended
June 30, December 31, June 30, June 30,
(dollars in thousands, except per share amounts) 2020 2019 2019 2020 2019
For the Period:
Operating Results
Net Interest Income $ 126,691 $ 125,966 $ 124,097 $ 252,657 $ 248,934
Provision for Credit Losses 40,400 33,600 4,000 74,000 7,000
Total Noninterest Income 51,268 46,149 45,450 97,417 89,129
Total Noninterest Expense 88,892 96,312 92,725 185,204 185,782
Net Income 38,908 34,742 56,919 73,650 115,718
Basic Earnings Per Share 0.98 0.88 1.40 1.86 2.84
Diluted Earnings Per Share 0.98 0.87 1.40 1.85 2.82
Dividends Declared Per Share 0.67 0.67 0.65 1.34 1.27
Performance Ratios
Return on Average Assets 0.82 % 0.77 % 1.31 % 0.79 % 1.34 %
Return on Average Shareholders' Equity 11.58 10.64 17.97 11.11 18.39
Efficiency Ratio ^1^ 49.95 55.96 54.69 52.90 54.95
Net Interest Margin ^2^ 2.83 2.96 3.04 2.90 3.08
Dividend Payout Ratio^3^ 68.37 76.14 46.43 72.04 44.72
Average Shareholders' Equity to Average Assets 7.04 7.21 7.27 7.12 7.31
Average Balances
Average Loans and Leases $ 11,727,649 $ 11,060,707 $ 10,631,558 $ 11,394,178 $ 10,549,893
Average Assets 19,189,581 18,222,602 17,480,651 18,706,092 17,359,031
Average Deposits 16,679,511 15,817,745 15,162,782 16,248,628 15,067,622
Average Shareholders' Equity 1,351,345 1,313,848 1,270,162 1,332,596 1,268,808
Per Share of Common Stock
Book Value $ 33.76 $ 33.20 $ 31.61 $ 33.76 $ 31.61
Tangible Book Value 32.97 32.41 30.83 32.97 30.83
Market Value
Closing 61.41 54.91 82.91 61.41 82.91
High 72.74 95.53 84.53 95.53 84.53
Low 51.15 46.70 75.24 46.70 66.54
June 30, March 31, December 31, June 30,
2020 2020 2019 2019
As of Period End:
Balance Sheet Totals
Loans and Leases $ 11,805,370 $ 11,352,780 $ 10,990,892 $ 10,759,129
Total Assets 19,769,942 18,542,233 18,095,496 17,688,845
Total Deposits 17,423,155 16,055,361 15,784,482 15,488,821
Other Debt 60,524 60,545 85,565 110,605
Total Shareholders' Equity 1,352,082 1,327,929 1,286,832 1,285,948
Asset Quality
Non-Performing Assets $ 22,701 $ 20,604 $ 20,117 $ 21,782
Allowance for Loan and Lease Losses 173,439 138,150 110,027 107,672
Allowance to Loans and Leases Outstanding 1.47 % 1.22 % 1.00 % 1.00 %
Capital Ratios ^4^
Common Equity Tier 1 Capital Ratio 12.04 % 11.81 % 12.18 % 12.46 %
Tier 1 Capital Ratio 12.04 11.81 12.18 12.46
Total Capital Ratio 13.29 13.06 13.28 13.57
Tier 1 Leverage Ratio 6.90 7.12 7.25 7.36
Total Shareholders' Equity to Total Assets 6.84 7.16 7.11 7.27
Tangible Common Equity to Tangible Assets ^5^ 6.69 7.00 6.95 7.10
Tangible Common Equity to Risk-Weighted Assets^5^ 12.07 11.85 11.85 12.17
Non-Financial Data
Full-Time Equivalent Employees 2,112 2,094 2,124 2,152
Branches 67 67 68 68
ATMs 367 382 387 383
^1^ Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
^2^Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
^3^ Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.
^4^Regulatory capital ratios as of June 30, 2020 are preliminary. CET 1 / Tier 1 Capital Ratios revised from 11.85%, Total Capital Ratio revised from 13.10%, and Tier 1 Leverage Ratio revised from 7.14% as of March 31, 2020.
^5^ Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 “Reconciliation of Non-GAAP Financial Measures."
Bank of Hawaii Corporation and Subsidiaries
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Reconciliation of Non-GAAP Financial Measures Table 2
June 30, March 31, December 31, June 30,
(dollars in thousands) 2020 2020 2019 2019
Total Shareholders' Equity $ 1,352,082 $ 1,327,929 $ 1,286,832 $ 1,285,948
Less: 31,517 31,517 31,517 31,517
Tangible Common Equity $ 1,320,565 $ 1,296,412 $ 1,255,315 $ 1,254,431
Total Assets $ 19,769,942 $ 18,542,233 $ 18,095,496 $ 17,688,845
Less: 31,517 31,517 31,517 31,517
Tangible Assets $ 19,738,425 $ 18,510,716 $ 18,063,979 $ 17,657,328
Risk-Weighted Assets, determined in accordance
$ 10,941,894 $ 10,944,260 $ 10,589,061 $ 10,309,085
Total Shareholders' Equity to Total Assets 6.84 % 7.16 % 7.11 % 7.27 %
Tangible Common Equity to Tangible Assets (Non-GAAP) 6.69 % 7.00 % 6.95 % 7.10 %
Tier 1 Capital Ratio 12.04 % 11.81 % 12.18 % 12.46 %
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 12.07 % 11.85 % 11.85 % 12.17 %
Note: Risk-Weighted Assets and Regulatory capital ratios as of June 30, 2020 are preliminary. Risk-Weighted Assets revised from 10,941,909 and Tier 1 Capital Ratio revised
from 11.85% as of March 31, 2020.

All values are in US Dollars.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income Table 3
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
(dollars in thousands, except per share amounts) 2020 2020 2019 2020 2019
Interest Income
Interest and Fees on Loans and Leases $ 107,628 $ 108,210 $ 110,401 $ 215,838 $ 218,912
Income on Investment Securities
Available-for-Sale 14,576 16,711 15,072 31,287 28,504
Held-to-Maturity 16,723 19,252 22,149 35,975 44,070
Deposits 1 9 9 10 24
Funds Sold 92 546 730 638 2,174
Other 125 218 210 343 529
Total Interest Income 139,145 144,946 148,571 284,091 294,213
Interest Expense
Deposits 7,954 14,260 18,628 22,214 33,912
Securities Sold Under Agreements to Repurchase 4,020 4,025 4,623 8,045 9,194
Funds Purchased 18 72 512 90 669
Short-Term Borrowings 22 39 1 61 37
Other Debt 440 584 710 1,024 1,467
Total Interest Expense 12,454 18,980 24,474 31,434 45,279
Net Interest Income 126,691 125,966 124,097 252,657 248,934
Provision for Credit Losses 40,400 33,600 4,000 74,000 7,000
Net Interest Income After Provision for Credit Losses 86,291 92,366 120,097 178,657 241,934
Noninterest Income
Trust and Asset Management 10,550 10,915 11,385 21,465 22,146
Mortgage Banking 4,278 2,695 3,336 6,973 5,623
Service Charges on Deposit Accounts 5,097 7,451 7,283 12,548 14,647
Fees, Exchange, and Other Service Charges 9,417 13,200 14,252 22,617 28,460
Investment Securities Gains (Losses), Net 13,216 (970) (776) 12,246 (1,611)
Annuity and Insurance 883 928 1,806 1,811 4,384
Bank-Owned Life Insurance 1,649 1,580 1,779 3,229 3,489
Other 6,178 10,350 6,385 16,528 11,991
Total Noninterest Income 51,268 46,149 45,450 97,417 89,129
Noninterest Expense
Salaries and Benefits 50,715 54,463 53,511 105,178 110,097
Net Occupancy 8,761 8,955 8,579 17,716 16,173
Net Equipment 8,195 8,456 6,895 16,651 13,728
Data Processing 4,416 4,788 4,727 9,204 9,253
Professional Fees 3,061 3,208 2,177 6,269 4,630
FDIC Insurance 1,558 1,456 1,290 3,014 2,559
Other 12,186 14,986 15,546 27,172 29,342
Total Noninterest Expense 88,892 96,312 92,725 185,204 185,782
Income Before Provision for Income Taxes 48,667 42,203 72,822 90,870 145,281
Provision for Income Taxes 9,759 7,461 15,903 17,220 29,563
Net Income $ 38,908 $ 34,742 $ 56,919 $ 73,650 $ 115,718
Basic Earnings Per Share $ 0.98 $ 0.88 $ 1.40 $ 1.86 $ 2.84
Diluted Earnings Per Share $ 0.98 $ 0.87 $ 1.40 $ 1.85 $ 2.82
Dividends Declared Per Share $ 0.67 $ 0.67 $ 0.65 $ 1.34 $ 1.27
Basic Weighted Average Shares 39,703,735 39,681,611 40,541,594 39,692,695 40,738,772
Diluted Weighted Average Shares 39,832,475 39,916,986 40,769,767 39,873,334 40,988,001
Bank of Hawaii Corporation and Subsidiaries
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Consolidated Statements of Comprehensive Income Table 4
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
(dollars in thousands) 2020 2020 2019 2020 2019
Net Income $ 38,908 $ 34,742 $ 56,919 $ 73,650 $ 115,718
Other Comprehensive Income, Net of Tax:
Net Unrealized Gains on Investment Securities 7,730 41,559 16,209 49,289 23,128
Defined Benefit Plans 374 374 245 748 491
Other Comprehensive Income 8,104 41,933 16,454 50,037 23,619
Comprehensive Income $ 47,012 $ 76,675 $ 73,373 $ 123,687 $ 139,337
Bank of Hawaii Corporation and Subsidiaries
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Consolidated Statements of Condition Table 5
March 31, December 31, June 30,
(dollars in thousands) 2020 2019 2019
Assets
Interest-Bearing Deposits in Other Banks 2,310 $ 6,346 $ 4,979 $ 3,859
Funds Sold 96,898 254,574 204,340
Investment Securities
Available-for-Sale 2,681,049 2,619,003 2,649,949
Held-to-Maturity (Fair Value of 3,374,294; 3,104,020; 3,062,882; and 2,973,229) 3,004,139 3,042,294 2,959,611
Loans Held for Sale 20,789 39,062 22,706
Loans and Leases 11,352,780 10,990,892 10,759,129
Allowance for Loan and Lease Losses (138,150) (110,027) (107,672)
Net Loans and Leases 11,214,630 10,880,865 10,651,457
Total Earning Assets 17,023,851 16,840,777 16,491,922
Cash and Due from Banks 453,465 299,105 282,164
Premises and Equipment, Net 196,228 188,388 169,671
Operating Lease Right-of-Use Assets 98,695 100,838 103,336
Accrued Interest Receivable 46,996 46,476 49,726
Foreclosed Real Estate 2,506 2,737 2,737
Mortgage Servicing Rights 22,537 25,022 24,233
Goodwill 31,517 31,517 31,517
Bank-Owned Life Insurance 289,536 287,962 285,295
Other Assets 376,902 272,674 248,244
Total Assets 19,769,942 $ 18,542,233 $ 18,095,496 $ 17,688,845
Liabilities
Deposits
Noninterest-Bearing Demand 5,485,015 $ 4,378,918 $ 4,489,525 $ 4,528,251
Interest-Bearing Demand 3,261,101 3,127,205 3,033,066
Savings 6,670,530 6,365,321 6,004,528
Time 1,744,812 1,802,431 1,922,976
Total Deposits 16,055,361 15,784,482 15,488,821
Funds Purchased 75,000 — —
Short-Term Borrowings 75,000 — —
Securities Sold Under Agreements to Repurchase 603,206 604,306 504,299
Other Debt 60,545 85,565 110,605
Operating Lease Liabilities 106,180 108,210 110,483
Retirement Benefits Payable 44,124 44,504 40,047
Accrued Interest Payable 7,932 8,040 9,454
Taxes Payable and Deferred Taxes 32,793 16,085 21,337
Other Liabilities 154,163 157,472 117,851
Total Liabilities 17,214,304 16,808,664 16,402,897
Shareholders' Equity
Common Stock (.01 par value; authorized 500,000,000 shares;
issued / outstanding: June 30, 2020 - 58,263,452 / 40,047,694;
March 31, 2020 - 58,251,725 / 39,996,510; December 31, 2019 - 58,166,910 / 40,039,695;
and June 30, 2019 - 58,175,367 / 40,687,719) 579 579 579
Capital Surplus 584,392 582,566 577,346
Accumulated Other Comprehensive Gain (Loss) 10,821 (31,112) (27,424)
Retained Earnings 1,773,607 1,761,415 1,704,993
Treasury Stock, at Cost (Shares: June 30, 2020 - 18,215,758; March 31, 2020 - 18,255,215;
December 31, 2019 - 18,127,215; and June 30, 2019 - 17,487,648) (1,041,470) (1,026,616) (969,546)
Total Shareholders' Equity 1,327,929 1,286,832 1,285,948
Total Liabilities and Shareholders' Equity 19,769,942 $ 18,542,233 $ 18,095,496 $ 17,688,845

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 — — — — 73,650 — 73,650
Other Comprehensive Income — — — 50,037 — — 50,037
Cumulative Change in Accounting Principle — — — — 3,632 — 3,632
Share-Based Compensation — — 3,704 — — — 3,704
Common Stock Issued under Purchase and Equity
195,351 1 676 — 1,333 3,041 5,051
Common Stock Repurchased (187,352) — — — — (17,145) (17,145)
Cash Dividends Declared (1.34 per share) — — — — (53,679) — (53,679)
Balance as of June 30, 2020 40,047,694 $ 580 $ 586,946 $ 18,925 $ 1,786,351 $ (1,040,720) $ 1,352,082
Balance as of December 31, 2018 41,499,898 577 571,704 (51,043) 1,641,314 (894,352) 1,268,200
Net Income — — — — 115,718 — 115,718
Other Comprehensive Income — — — 23,619 — — 23,619
Share-Based Compensation — — 4,438 — — — 4,438
Common Stock Issued under Purchase and Equity
174,709 2 1,204 — 162 2,981 4,349
Common Stock Repurchased (986,888) — — — — (78,175) (78,175)
Cash Dividends Declared (1.27 per share) — — — — (52,201) — (52,201)
Balance as of June 30, 2019 40,687,719 $ 579 $ 577,346 $ (27,424) $ 1,704,993 $ (969,546) $ 1,285,948

All values are in US Dollars.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis Table 7a
Three Months Ended Three Months Ended Three Months Ended
June 30, 2020 March 31, 2020 June 30, 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 $ 2.6 $ — 0.18 % $ 1.4 $ — 2.36 % $ 2.9 $ — 1.25 %
Funds Sold 545.9 0.1 0.07 152.8 0.6 1.41 123.6 0.8 2.34
Investment Securities
2,614.1 14.3 2.19 2,702.4 16.4 2.43 2,004.3 14.3 2.87
32.2 0.4 4.45 32.4 0.4 4.40 86.8 0.9 4.15
2,957.6 16.4 2.22 3,036.2 18.9 2.50 3,358.0 21.0 2.50
54.4 0.4 2.66 54.7 0.4 2.67 193.0 1.5 3.08
Total Investment Securities 5,658.3 31.5 2.22 5,825.7 36.1 2.48 5,642.1 37.7 2.68
Loans Held for Sale 23.4 0.2 3.24 23.2 0.2 3.54 18.7 0.2 4.05
Loans and Leases 1
1,963.8 17.9 3.67 1,409.3 13.2 3.77 1,385.7 14.9 4.31
2,622.9 22.3 3.42 2,549.4 25.1 3.96 2,386.3 25.9 4.35
255.8 2.5 3.93 213.2 2.5 4.65 125.3 1.7 5.51
110.9 0.5 1.88 111.4 0.5 1.95 159.9 1.0 2.49
3,939.6 36.0 3.65 3,895.4 36.9 3.79 3,730.4 36.0 3.87
1,665.2 14.3 3.45 1,680.2 15.2 3.64 1,694.9 16.2 3.83
701.2 6.2 3.55 721.0 6.4 3.56 688.5 6.2 3.62
468.2 7.9 6.77 480.8 8.4 7.06 460.6 8.4 7.33
Total Loans and Leases 11,727.6 107.6 3.68 11,060.7 108.2 3.93 10,631.6 110.3 4.16
Other 34.0 0.1 1.47 34.3 0.2 2.54 35.0 0.2 2.40
Total Earning Assets 3 17,991.8 139.5 3.11 17,098.1 145.3 3.41 16,453.9 149.2 3.63
Cash and Due from Banks 302.4 278.8 241.6
Other Assets 895.4 845.7 785.2
Total Assets $ 19,189.6 $ 18,222.6 $ 17,480.7
Interest-Bearing Liabilities
Interest-Bearing Deposits
$ 3,226.6 0.6 0.07 $ 3,110.0 1.0 0.12 $ 2,902.5 1.4 0.19
6,691.4 2.2 0.13 6,502.4 7.1 0.44 6,002.0 8.9 0.60
1,826.8 5.2 1.13 1,743.0 6.2 1.43 1,866.6 8.3 1.79
Total Interest-Bearing Deposits 11,744.8 8.0 0.27 11,355.4 14.3 0.51 10,771.1 18.6 0.69
Short-Term Borrowings 57.6 — 0.28 57.8 0.1 0.76 82.3 0.5 2.46
Securities Sold Under Agreements to Repurchase 602.9 4.0 2.64 604.1 4.0 2.64 504.3 4.7 3.63
Other Debt 60.5 0.5 2.91 66.9 0.6 3.51 110.6 0.7 2.57
Total Interest-Bearing Liabilities 12,465.8 12.5 0.40 12,084.2 19.0 0.63 11,468.3 24.5 0.85
Net Interest Income $ 127.0 $ 126.3 $ 124.7
2.71 % 2.78 % 2.78 %
2.83 % 2.96 % 3.04 %
Noninterest-Bearing Demand Deposits 4,934.7 4,462.3 4,391.7
Other Liabilities 437.8 362.3 350.5
Shareholders' Equity 1,351.3 1,313.8 1,270.2
Total Liabilities and Shareholders' Equity $ 19,189.6 $ 18,222.6 $ 17,480.7
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 358,000, 357,000, and 601,000

All values are in US Dollars.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis Table 7b
Six Months Ended Six Months Ended
June 30, 2020 June 30, 2019
Average Income/ Yield/ Average Income/ Yield/
(dollars in millions) Balance Expense Rate Balance Expense Rate
Earning Assets
Interest-Bearing Deposits in Other Banks $ 2.0 $ — 0.96 % $ 2.9 $ — 1.65 %
Funds Sold 349.3 0.6 0.36 182.3 2.2 2.37
Investment Securities
2,658.3 30.8 2.31 1,801.2 25.9 2.88
32.3 0.7 4.43 182.5 3.3 3.63
2,996.9 35.4 2.36 3,365.7 41.5 2.46
54.5 0.7 2.67 213.4 3.3 3.12
Total Investment Securities 5,742.0 67.6 2.35 5,562.8 74.0 2.66
Loans Held for Sale 23.3 0.4 3.39 15.6 0.3 4.16
Loans and Leases 1
1,686.5 31.1 3.71 1,371.8 30.2 4.43
2,586.2 47.4 3.69 2,348.6 50.7 4.36
234.6 5.0 4.26 137.8 3.6 5.27
111.1 1.1 1.91 160.4 1.9 2.38
3,917.5 72.9 3.72 3,705.4 71.5 3.86
1,672.7 29.5 3.55 1,692.5 32.3 3.85
711.1 12.6 3.56 678.4 12.3 3.64
474.5 16.3 6.92 455.0 16.3 7.23
Total Loans and Leases 11,394.2 215.9 3.80 10,549.9 218.8 4.17
Other 34.2 0.3 2.01 35.2 0.5 3.00
Total Earning Assets 3 17,545.0 284.8 3.26 16,348.7 295.8 3.63
Cash and Due from Banks 290.6 241.2
Other Assets 870.5 769.1
Total Assets $ 18,706.1 $ 17,359.0
Interest-Bearing Liabilities
Interest-Bearing Deposits
$ 3,168.3 1.5 0.10 $ 2,921.1 2.8 0.20
6,596.9 9.3 0.28 5,882.1 15.7 0.54
1,784.9 11.4 1.28 1,785.4 15.4 1.74
Total Interest-Bearing Deposits 11,550.1 22.2 0.39 10,588.6 33.9 0.65
Short-Term Borrowings 57.7 0.2 0.52 56.8 0.7 2.47
Securities Sold Under Agreements to Repurchase 603.5 8.0 2.64 504.3 9.2 3.63
Other Debt 63.7 1.0 3.23 115.3 1.5 2.56
Total Interest-Bearing Liabilities 12,275.0 31.4 0.51 11,265.0 45.3 0.81
Net Interest Income $ 253.4 $ 250.5
2.75 % 2.82 %
2.90 % 3.08 %
Noninterest-Bearing Demand Deposits 4,698.5 4,479.0
Other Liabilities 400.0 346.2
Shareholders' Equity 1,332.6 1,268.8
Total Liabilities and Shareholders' Equity $ 18,706.1 $ 17,359.0
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 715,000 and 1,582,000

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 June 30, 2020
Compared to March 31, 2020
(dollars in millions) Volume ^1^ Rate ^1^ Total
Change in Interest Income:
Funds Sold 0.4 $ (0.9) $ (0.5)
Investment Securities
Available-for-Sale
Taxable (0.5) (1.6) (2.1)
Held-to-Maturity
Taxable (0.5) (2.0) (2.5)
Total Investment Securities (1.0) (3.6) (4.6)
Loans and Leases
Commercial and Industrial 5.1 (0.4) 4.7
Commercial Mortgage 0.7 (3.5) (2.8)
Construction 0.4 (0.4) —
Residential Mortgage 0.4 (1.3) (0.9)
Home Equity (0.1) (0.8) (0.9)
Automobile (0.2) — (0.2)
Other ^2^ (0.2) (0.3) (0.5)
Total Loans and Leases 6.1 (6.7) (0.6)
Other — (0.1) (0.1)
Total Change in Interest Income 5.5 (11.3) (5.8)
Change in Interest Expense:
Interest-Bearing Deposits
Demand — (0.4) (0.4)
Savings 0.2 (5.1) (4.9)
Time 0.3 (1.3) (1.0)
Total Interest-Bearing Deposits 0.5 (6.8) (6.3)
Short-Term Borrowings — (0.1) (0.1)
Other Debt (0.1) — (0.1)
Total Change in Interest Expense 0.4 (6.9) (6.5)
Change in Net Interest Income $ 5.1 $ (4.4) $ 0.7
^1^The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
^2^ Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- ---
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8b
Three Months Ended June 30, 2020
Compared to June 30, 2019
(dollars in millions) Volume ^1^ Rate ^1^ Total
Change in Interest Income:
Funds Sold $ 0.6 $ (1.3) $ (0.7)
Investment Securities
Available-for-Sale
Taxable 3.8 (3.8) —
Non-Taxable (0.6) 0.1 (0.5)
Held-to-Maturity
Taxable (2.4) (2.2) (4.6)
Non-Taxable (0.9) (0.2) (1.1)
Total Investment Securities (0.1) (6.1) (6.2)
Loans and Leases
Commercial and Industrial 5.5 (2.5) 3.0
Commercial Mortgage 2.3 (5.9) (3.6)
Construction 1.4 (0.6) 0.8
Commercial Lease Financing (0.3) (0.2) (0.5)
Residential Mortgage 2.0 (2.0) —
Home Equity (0.3) (1.6) (1.9)
Automobile 0.1 (0.1) —
Other ^2^ 0.1 (0.6) (0.5)
Total Loans and Leases 10.8 (13.5) (2.7)
Other — (0.1) (0.1)
Total Change in Interest Income 11.3 (21.0) (9.7)
Change in Interest Expense:
Interest-Bearing Deposits
Demand 0.1 (0.9) (0.8)
Savings 0.9 (7.6) (6.7)
Time (0.1) (3.0) (3.1)
Total Interest-Bearing Deposits 0.9 (11.5) (10.6)
Short-Term Borrowings (0.1) (0.4) (0.5)
Securities Sold Under Agreements to Repurchase 0.8 (1.5) (0.7)
Other Debt (0.4) 0.2 (0.2)
Total Change in Interest Expense 1.2 (13.2) (12.0)
Change in Net Interest Income $ 10.1 $ (7.8) $ 2.3
^1^The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
^2^ Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- ---
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8c
Six Months Ended June 30, 2020
Compared to June 30, 2019
(dollars in millions) Volume ^1^ Rate ^1^ Total
Change in Interest Income:
Funds Sold $ 1.1 $ (2.7) $ (1.6)
Investment Securities
Available-for-Sale
Taxable 10.7 (5.8) 4.9
Non-Taxable (3.2) 0.6 (2.6)
Held-to-Maturity
Taxable (4.4) (1.7) (6.1)
Non-Taxable (2.2) (0.4) (2.6)
Total Investment Securities 0.9 (7.3) (6.4)
Loans Held for Sale 0.1 — 0.1
Loans and Leases
Commercial and Industrial 6.3 (5.4) 0.9
Commercial Mortgage 4.9 (8.2) (3.3)
Construction 2.2 (0.8) 1.4
Commercial Lease Financing (0.5) (0.3) (0.8)
Residential Mortgage 4.0 (2.6) 1.4
Home Equity (0.4) (2.4) (2.8)
Automobile 0.6 (0.3) 0.3
Other^2^ 0.7 (0.7) —
Total Loans and Leases 17.8 (20.7) (2.9)
Other — (0.2) (0.2)
Total Change in Interest Income 19.9 (30.9) (11.0)
Change in Interest Expense:
Interest-Bearing Deposits
Demand 0.2 (1.5) (1.3)
Savings 1.7 (8.1) (6.4)
Time — (4.0) (4.0)
Total Interest-Bearing Deposits 1.9 (13.6) (11.7)
Short-Term Borrowings — (0.5) (0.5)
Securities Sold Under Agreements to Repurchase 1.6 (2.8) (1.2)
Other Debt (0.8) 0.3 (0.5)
Total Change in Interest Expense 2.7 (16.6) (13.9)
Change in Net Interest Income $ 17.2 $ (14.3) $ 2.9
^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 Six Months Ended
June 30, March 31, June 30, June 30,
(dollars in thousands) 2020 2020 2019 2020 2019
Salaries $ 32,739 $ 33,486 $ 32,834 $ 66,225 $ 65,314
Incentive Compensation 3,141 245 5,464 3,386 11,368
Share-Based Compensation 2,021 1,291 1,994 3,312 5,073
Commission Expense 1,647 1,374 1,704 3,021 2,634
Retirement and Other Benefits 4,446 4,706 4,580 9,152 9,687
Payroll Taxes 2,782 4,543 2,643 7,325 6,890
Medical, Dental, and Life Insurance 3,830 4,142 3,926 7,972 8,391
Separation Expense 109 4,676 366 4,785 740
Total Salaries and Benefits $ 50,715 $ 54,463 $ 53,511 $ 105,178 $ 110,097
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Loan and Lease Portfolio Balances Table 10
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands) 2020 2020 2019 2019 2019
Commercial
Commercial and Industrial $ 1,956,939 $ 1,558,232 $ 1,379,152 $ 1,361,011 $ 1,408,729
Commercial Mortgage 2,707,534 2,616,243 2,518,051 2,477,296 2,411,289
Construction 245,099 245,390 194,170 154,754 119,228
Lease Financing 113,187 110,704 122,454 163,672 163,070
Total Commercial 5,022,759 4,530,569 4,213,827 4,156,733 4,102,316
Consumer
Residential Mortgage 3,989,393 3,928,183 3,891,100 3,846,511 3,785,006
Home Equity 1,640,887 1,692,154 1,676,073 1,681,951 1,694,577
Automobile 700,702 716,214 720,286 713,424 703,523
Other ^1^ 451,629 485,660 489,606 482,679 473,707
Total Consumer 6,782,611 6,822,211 6,777,065 6,724,565 6,656,813
Total Loans and Leases $ 11,805,370 $ 11,352,780 $ 10,990,892 $ 10,881,298 $ 10,759,129
Deposits
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands) 2020 2020 2019 2019 2019
Consumer $ 8,766,885 $ 8,294,464 $ 8,118,494 $ 7,893,454 $ 7,880,284
Commercial 7,295,033 6,358,583 6,324,214 6,153,492 6,178,984
Public and Other 1,361,237 1,402,314 1,341,774 1,293,806 1,429,553
Total Deposits $ 17,423,155 $ 16,055,361 $ 15,784,482 $ 15,340,752 $ 15,488,821
^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
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands) 2020 2020 2019 2019 2019
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial $ 459 $ 634 $ 830 $ 573 $ 552
Commercial Mortgage 8,672 9,048 9,244 11,088 11,310
Total Commercial 9,131 9,682 10,074 11,661 11,862
Consumer
Residential Mortgage 5,888 4,330 4,125 4,258 4,697
Home Equity 5,176 4,086 3,181 2,787 2,486
Total Consumer 11,064 8,416 7,306 7,045 7,183
Total Non-Accrual Loans and Leases 20,195 18,098 17,380 18,706 19,045
Foreclosed Real Estate 2,506 2,506 2,737 2,939 2,737
Total Non-Performing Assets $ 22,701 $ 20,604 $ 20,117 $ 21,645 $ 21,782
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial $ — $ — $ — $ 81 $ —
Total Commercial — — — 81 —
Consumer
Residential Mortgage $ 4,937 $ 3,024 $ 1,839 $ 2,032 $ 1,859
Home Equity 3,519 3,426 4,125 2,320 2,981
Automobile 133 866 949 582 607
Other ^1^ 296 1,205 1,493 1,076 963
Total Consumer 8,885 8,521 8,406 6,010 6,410
Total Accruing Loans and Leases Past Due 90 Days or More $ 8,885 $ 8,521 $ 8,406 $ 6,091 $ 6,410
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More $ 59,713 $ 61,425 $ 63,103 $ 46,178 $ 48,563
Total Loans and Leases $ 11,805,370 $ 11,352,780 $ 10,990,892 $ 10,881,298 $ 10,759,129
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases 0.17 % 0.16 % 0.16 % 0.17 % 0.18 %
Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate 0.19 % 0.18 % 0.18 % 0.20 % 0.20 %
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and
Leases and Commercial Foreclosed Real Estate 0.18 % 0.21 % 0.24 % 0.28 % 0.29 %
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate 0.20 % 0.16 % 0.15 % 0.15 % 0.15 %
Ratio of Non-Performing Assets and Accruing Loans and Leases
Past Due 90 Days or More to Total Loans and Leases
and Foreclosed Real Estate 0.27 % 0.26 % 0.26 % 0.25 % 0.26 %
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter $ 20,604 $ 20,117 $ 21,645 $ 21,782 $ 17,925
Additions 5,856 1,754 883 1,035 6,186
Reductions
Payments (2,736) (315) (495) (984) (441)
Return to Accrual Status (822) (437) (1,673) — (1,344)
Sales of Foreclosed Real Estate — (231) (201) — (374)
Charge-offs/Write-downs (201) (284) (42) (188) (170)
Total Reductions (3,759) (1,267) (2,411) (1,172) (2,329)
Balance at End of Quarter $ 22,701 $ 20,604 $ 20,117 $ 21,645 $ 21,782
^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 Six Months Ended
June 30, March 31, June 30, June 30,
(dollars in thousands) 2020 2020 2019 2020 2019
Balance at Beginning of Period $ 141,467 $ 116,849 $ 112,845 $ 116,849 $ 113,515
CECL Adoption (Day 1) Impact — (5,072) — (5,072) —
Loans and Leases Charged-Off
Commercial
Commercial and Industrial (656) (693) (206) (1,349) (576)
Commercial Mortgage — — — — (1,616)
Consumer
Residential Mortgage (64) (20) (51) (84) (55)
Home Equity (273) — (145) (273) (440)
Automobile (3,114) (2,500) (1,691) (5,614) (3,444)
Other ^1^ (4,176) (3,964) (3,036) (8,140) (5,826)
Total Loans and Leases Charged-Off (8,283) (7,177) (5,129) (15,460) (11,957)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial 1,524 289 401 1,813 902
Commercial Mortgage — 40 — 40 —
Consumer
Residential Mortgage 118 263 95 381 579
Home Equity 321 976 746 1,297 1,334
Automobile 547 1,005 908 1,552 1,789
Other ^1^ 662 864 628 1,526 1,332
Total Recoveries on Loans and Leases Previously Charged-Off 3,172 3,437 2,778 6,609 5,936
Net Loans and Leases Charged-Off (5,111) (3,740) (2,351) (8,851) (6,021)
Provision for Credit Losses 40,400 33,600 4,000 74,000 7,000
Provision for Unfunded Commitments (798) (170) — (968) —
Balance at End of Period ^2^ $ 175,958 $ 141,467 $ 114,494 $ 175,958 $ 114,494
Components
Allowance for Credit Losses $ 173,439 $ 138,150 $ 107,672 $ 173,439 $ 107,672
Reserve for Unfunded Commitments 2,519 3,317 6,822 2,519 6,822
Total Reserve for Credit Losses $ 175,958 $ 141,467 $ 114,494 $ 175,958 $ 114,494
Average Loans and Leases Outstanding $ 11,727,649 $ 11,060,707 $ 10,631,558 $ 11,394,178 $ 10,549,893
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized) 0.18 % 0.14 % 0.09 % 0.16 % 0.12 %
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding 1.47 % 1.22 % 1.00 % 1.47 % 1.00 %
^1^ Comprised of other revolving credit, installment, and lease financing.
^2^Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- --- ---
Business Segments Selected Financial Information Table 13a
Consumer Commercial Treasury Consolidated
(dollars in thousands) Banking Banking and Other Total
Three Months Ended June 30, 2020
Net Interest Income $ 73,221 $ 51,219 $ 2,251 $ 126,691
Provision for Credit Losses 6,137 (1,025) 35,288 40,400
Net Interest Income (Loss) After Provision for Credit Losses 67,084 52,244 (33,037) 86,291
Noninterest Income 28,943 7,076 15,249 51,268
Noninterest Expense (70,744) (14,776) (3,372) (88,892)
Income (Loss) Before Provision for Income Taxes 25,283 44,544 (21,160) 48,667
Provision for Income Taxes (6,451) (10,940) 7,632 (9,759)
Net Income (Loss) $ 18,832 $ 33,604 $ (13,528) $ 38,908
Total Assets as of June 30, 2020 $ 7,416,337 $ 5,033,297 $ 7,320,308 $ 19,769,942
Three Months Ended June 30, 2019^1^
Net Interest Income $ 77,063 $ 45,703 $ 1,331 $ 124,097
Provision for Credit Losses 2,526 (175) 1,649 4,000
Net Interest Income (Loss) After Provision for Credit Losses 74,537 45,878 (318) 120,097
Noninterest Income 35,967 6,938 2,545 45,450
Noninterest Expense (68,543) (21,260) (2,922) (92,725)
Income (Loss) Before Provision for Income Taxes 41,961 31,556 (695) 72,822
Provision for Income Taxes (10,405) (7,945) 2,447 (15,903)
Net Income $ 31,556 $ 23,611 $ 1,752 $ 56,919
Total Assets as of June 30, 2019 ^1^ $ 6,924,338 $ 4,089,452 $ 6,675,055 $ 17,688,845
^1^ Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawaii Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- ---
Business Segments Selected Financial Information Table 13b
Consumer Commercial Treasury Consolidated
(dollars in thousands) Banking Banking and Other Total
Six Months Ended June 30, 2020 ^1^
Net Interest Income $ 147,135 $ 96,456 $ 9,066 $ 252,657
Provision for Credit Losses 9,588 (735) 65,147 74,000
Net Interest Income (Loss) After Provision for Credit Losses 137,547 97,191 (56,081) 178,657
Noninterest Income 61,533 18,811 17,073 97,417
Noninterest Expense (141,644) (32,122) (11,438) (185,204)
Income (Loss) Before Provision for Income Taxes 57,436 83,880 (50,446) 90,870
Provision for Income Taxes (14,527) (20,494) 17,801 (17,220)
Net Income (Loss) $ 42,909 $ 63,386 $ (32,645) $ 73,650
Total Assets as of June 30, 2020 $ 7,416,337 $ 5,033,297 $ 7,320,308 $ 19,769,942
Six Months Ended June 30, 2019 ^1^
Net Interest Income $ 153,415 $ 92,993 $ 2,526 $ 248,934
Provision for Credit Losses 4,750 1,271 979 7,000
Net Interest Income After Provision for Credit Losses 148,665 91,722 1,547 241,934
Noninterest Income 70,445 13,999 4,685 89,129
Noninterest Expense (137,970) (42,215) (5,597) (185,782)
Income Before Provision for Income Taxes 81,140 63,506 635 145,281
Provision for Income Taxes (20,239) (13,947) 4,623 (29,563)
Net Income $ 60,901 $ 49,559 $ 5,258 $ 115,718
Total Assets as of June 30, 2019 ^1^ $ 6,924,338 $ 4,089,452 $ 6,675,055 $ 17,688,845
^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
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands, except per share amounts) 2020 2020 2019 2019 2019
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases $ 107,628 $ 108,210 $ 109,223 $ 110,877 $ 110,401
Income on Investment Securities
Available-for-Sale 14,576 16,711 16,158 17,512 15,072
Held-to-Maturity 16,723 19,252 18,750 18,796 22,149
Deposits 1 9 8 9 9
Funds Sold 92 546 723 656 730
Other 125 218 239 233 210
Total Interest Income 139,145 144,946 145,101 148,083 148,571
Interest Expense
Deposits 7,954 14,260 16,407 18,055 18,628
Securities Sold Under Agreements to Repurchase 4,020 4,025 4,071 4,257 4,623
Funds Purchased 18 72 25 146 512
Short-Term Borrowings 22 39 — 1 1
Other Debt 440 584 713 728 710
Total Interest Expense 12,454 18,980 21,216 23,187 24,474
Net Interest Income 126,691 125,966 123,885 124,896 124,097
Provision for Credit Losses 40,400 33,600 4,750 4,250 4,000
Net Interest Income After Provision for Credit Losses 86,291 92,366 119,135 120,646 120,097
Noninterest Income
Trust and Asset Management 10,550 10,915 11,157 10,930 11,385
Mortgage Banking 4,278 2,695 3,199 4,864 3,336
Service Charges on Deposit Accounts 5,097 7,451 7,835 7,592 7,283
Fees, Exchange, and Other Service Charges 9,417 13,200 14,533 14,900 14,252
Investment Securities Gains (Losses), Net 13,216 (970) (906) (1,469) (776)
Annuity and Insurance 883 928 1,272 1,278 1,806
Bank-Owned Life Insurance 1,649 1,580 1,879 1,647 1,779
Other 6,178 10,350 8,733 6,765 6,385
Total Noninterest Income 51,268 46,149 47,702 46,507 45,450
Noninterest Expense
Salaries and Benefits 50,715 54,463 51,664 54,345 53,511
Net Occupancy 8,761 8,955 8,824 8,803 8,579
Net Equipment 8,195 8,456 7,930 7,637 6,895
Data Processing 4,416 4,788 4,828 4,676 4,727
Professional Fees 3,061 3,208 3,257 2,184 2,177
FDIC Insurance 1,558 1,456 1,376 1,257 1,290
Other 12,186 14,986 15,217 21,447 15,546
Total Noninterest Expense 88,892 96,312 93,096 100,349 92,725
Income Before Provision for Income Taxes 48,667 42,203 73,741 66,804 72,822
Provision for Income Taxes 9,759 7,461 15,598 14,752 15,903
Net Income $ 38,908 $ 34,742 $ 58,143 $ 52,052 $ 56,919
Basic Earnings Per Share $ 0.98 $ 0.88 $ 1.46 $ 1.30 $ 1.40
Diluted Earnings Per Share $ 0.98 $ 0.87 $ 1.45 $ 1.29 $ 1.40
Balance Sheet Totals
Loans and Leases $ 11,805,370 $ 11,352,780 $ 10,990,892 $ 10,881,298 $ 10,759,129
Total Assets 19,769,942 18,542,233 18,095,496 17,672,140 17,688,845
Total Deposits 17,423,155 16,055,361 15,784,482 15,340,752 15,488,821
Total Shareholders' Equity 1,352,082 1,327,929 1,286,832 1,291,490 1,285,948
Performance Ratios
Return on Average Assets 0.82 % 0.77 % 1.29 % 1.17 % 1.31 %
Return on Average Shareholders' Equity 11.58 10.64 17.84 16.02 17.97
Efficiency Ratio^1^ 49.95 55.96 54.26 58.55 54.69
Net Interest Margin ^2^ 2.83 2.96 2.95 3.01 3.04
^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
Five Months Ended Year Ended
($ in millions; jobs in thousands) May 31, 2020 December 31, 2019 December 31, 2018
Hawaii Economic Trends
State General Fund Revenues^1^ $ 2,687.4 (16.0) % $ 7,316.5 5.5 % $ 6,933.1 6.9 %
General Excise and Use Tax Revenue ^1^ $ 1,428.0 (8.0) % $ 3,602.2 5.1 % $ 3,426.5 2.3 %
Jobs^2^ 479.6 648.9 649.9
June 30, December 31,
(spot rates) 2020 2019 2018
Unemployment ^3^
Statewide, seasonally adjusted 13.9 % 2.7 % 2.6 %
Oahu 12.5 2.1 2.2
Island of Hawaii 13.7 2.8 2.9
Maui 22.6 2.2 2.2
Kauai 20.2 2.4 2.3
June 30, December 31,
(percentage change, except months of inventory) 2020 2019 2018 2017
Housing Trends (Single Family Oahu)^4^
Median Home Price 1.3 % (0.1) % 4.6 % 2.7 %
Home Sales Volume (units) (4.8) % 3.9 % (7.7) % 6.3 %
Months of Inventory 2.5 2.5 2.8 2.1
Monthly Visitor Arrivals, Percentage Change
(in thousands) Not Seasonally Adjusted from Previous Year
Tourism ^5^
May 31, 2020 9.1 (98.9)
April 30, 2020 4.6 (99.5)
March 31, 2020 434.9 (53.7)
February 29, 2020 828.1 5.8
January 31, 2020 862.6 5.1
December 31, 2019 954.3 6.0
November 30, 2019 811.4 4.2
October 31, 2019 800.4 4.8
September 30, 2019 741.3 3.5
August 31, 2019 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

bohfinancialresultssuppl

Bank of Hawaii Corporation Second Quarter 2020 Financial Results July 27, 2020

2020 Unemployment Experience & Forecast Hawaii Unemployment Rate 25.9% 23.8% 23.5% 18.8% 13.9% 2.7% 2.7% 2.4% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 3Q-20 4Q-20 Actual Actual Actual Actual Actual Actual Forecast Forecast Source: UHERO Base Case as of 5/28/20 2

Economic Forecast Hawaii Unemployment Rate 18.2 13.7 9.3 5.8 5.7 4.1 2.7 2.8 2.8 2.7 2019 2020F 2021F 2022F 2023F 3/30 Forecast 5/28 Base Forecast Source: UHERO Forecast Updates 3

Economic Forecast Real GDP Personal Income 3/30 Forecast 5/28 Base Forecast 3/30 Forecast 5/28 Base Forecast 99.2 87.6 97.3 98.0 96.7 95.9 94.7 84.5 91.8 83.0 89.9 81.3 81.0 80.6 86.5 79.2 77.0 77.4 $ in$ Billions $ in$ Billions 2019 2020F 2021F 2022F 2023F 2019 2020F 2021F 2022F 2023F 7.6 6.1 4.4 4.1 3.3 3.7 3.2 3.0 2.1 1.3 1.3 1.3 2.2 0.4 % % Change % Change -7.7 -2.6 -11.1 -5.3 2019 2020F 2021F 2022F 2023F 2019 2020F 2021F 2022F 2023F Source: UHERO Forecast Updates 4

Well Positioned • Strong Credit Metrics • Continued Stable Loan Growth • Strong Core Deposit Growth • Well Managed Funding Costs • Strong Liquidity • Solid Capital Levels 5

Credit Overview

Loan Portfolio Excluding PPP 76% of Portfolio Secured with Quality Real Estate with Combined Weighted Average Loan to Value of 56% C&I Residential 13% Mortgage 35% 40% Commercial 60% Consumer 59% Real Estate Secured 83% Real Estate Secured Wtd Avg LTV 55% Wtd Avg LTV 56% 66% w/ BOH ≥ 10 yrs CRE 57% w/ BOH ≥ 10 yrs Avg Balance $0.6 MM 24% Home Equity 15% Other Auto 6% Construction 4% 2% Leasing 1% Note: Excludes $543 MM in PPP Loan Balances 7

Credit Quality 1.00% Net Charge-offs ($ thousands) $30.0 Nonperforming Assets ($ millions) $6, 000 2.50% 0.80% $5,111 $25.0 $21.8 $22.7 $5, 000 2.00% $20.6 $20.0 0.60% $4, 000 $3,740 1.50% $15.0 $3, 000 $2,351 0.40% 1.00% $10.0 $2, 000 0.20% 0.18% 0.19% 0.20% 0.50% $5.0 $1, 000 0.09% 0.14% 0.18% $0.0 0.00% $0 0.00% 2Q19 1Q20 2Q20 2Q19 1Q20 2Q20 NCOs NCOs/Average Loans NPAs NPAs/Period-end Loans plus OREO Delinquencies ($ millions) $70.0 1.40% Criticized ($ millions) 300 5.00% 4.80%4.85%4.90%4.95% $60.0 $55.5 1.20% 4.65%4.70%4.75% 4.45%4.50%4.55%4.60% 4.25%4.30%4.35%4.40% 4.05%4.10%4.15%4.20% $50.0 1.00% 3.95%4.00% $201.6 3.75%3.80%3.85%3.90% $200.2 3.55%3.60%3.65%3.70% 200 3.35%3.40%3.45%3.50% $40.0 $37.8 0.80% 3.25%3.30% 3.05%3.10%3.15%3.20% 2.85%2.90%2.95%3.00% 2.65%2.70%2.75%2.80% $30.0 0.49% 0.60% 2.50%2.55%2.60% $23.5 2.30%2.35%2.40%2.45% $115.8 1.76% 1.71% 2.10%2.15%2.20%2.25% 0.35% 1.90%1.95%2.00%2.05% $20.0 0.40% 1.80%1.85% 100 1.60%1.65%1.70%1.75% 0.20% 1.08% 1.40%1.45%1.50%1.55% 1.20%1.25%1.30%1.35% $10.0 0.20% 1.10%1.15% 0.90%0.95%1.00%1.05% 0.70%0.75%0.80%0.85% 0.50%0.55%0.60%0.65% $0.0 0.00% 0.40%0.45% 0.20%0.25%0.30%0.35% 0 0.00%0.05%0.10%0.15% 2Q19 1Q20 2Q20 2Q19 1Q20 2Q20 Delinquencies (30+ Days Past Due) Delinquencies/Period-end Loans Special Mention Classified Criticized/Period-end Loans 8

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

Customer Relief Update $1.9 B (16%) Deferrals & Extensions as of 2Q20 Total Modifications Consumer Commercial 12% Outstandings 21% Outstandings Consumer 7% Forbearance Principal 8% 17% Commercial Extension 9% 4% Interest 1% P&I 3% No Modification No Modification No Modification 88% 79% 84% 10

Customer Relief Update • 17,300 Accounts as of June 30th • Deceleration in Activity Since Peak in April Weekly Payment Deferrals Granted $250 $600 $500 $200 $400 $150 $300 millions $100 millions $200 $50 $100 $0 $0 New Consumer New Commercial 11

Consumer Customer Relief $0.8 B (7%) 73% Secured with 61% Weighted Average LTV 49% Made at Least One Payment in 2Q20† • 60% Wtd Avg LTV • 716 Wtd Avg FICO • 783 Wtd Avg FICO • 37% <700 FICO • 3% <700 FICO/>70% LTV Other $62MM 8% • 66% Wtd Avg CLTV • 757 Wtd Avg FICO Home Equity $115MM • 9% <700 FICO/>70% LTV Residential Mortgage 15% $450MM 58% Indirect* $144MM • 668 Wtd Avg FICO 19% • 30% Wtd Avg DTI • 7% <700 FICO/>45% DTI † A payment represents any amount of principal, interest or both * Indirect excludes recourse loans ($24MM) 12

Commercial Customer Relief $1.1 B (9%) 89% Secured with 51% Weighted Average LTV 92% Made at Least One Payment in 2Q20† • 51% Wtd Avg LTV • 49% Wtd Avg LTV • $3.0MM Avg Loan • $2.2MM Avg Loan C&I Secured $108MM (10%) Commercial C&I Mortgage Unsecured $829MM $108MM (79%) • $0.2MM Avg Loan (10%) Leasing $7MM (1%) Construction $4MM † Based on 79% making at least one interest payment and 13% making at least one payment of principal, interest or both 13

High Risk Industries $1.4B (12%) / $1.3 B (11%) Excluding PPP Lodging` retail lodging retail all others 14

Retail $0.6 B (5%) - Excluding PPP • 91% Real Estate Secured • 54% Wtd Avg LTV • Average Exposure $3.2 MM • Largest Exposure $36 MM • 68% of Portfolio has an LTV ≤ 65% • 96.2% is Secured or has Essential Anchor • 1.7% Unsecured and Deferred • 99.9% Paying Interest 15

Lodging $0.5 B (4%) - Excluding PPP • 77% Real Estate Secured • 50% Wtd Avg LTV • Average Exposure $8.7 MM • Largest Exposure $40 MM • 85% of Portfolio has an LTV ≤ 65% • 94% of Unsecured Outstandings to Global Hotel and Timeshare Brands • 0.4% Unsecured and Deferred • 100% Paying Interest 16

Restaurant/Entertainment $0.1 B (1%) - Excluding PPP • 39% Real Estate Secured • 63% Wtd Avg LTV • Average Exposure $1.8 MM • Largest Exposure $23 MM • 48% of Portfolio has an LTV ≤ 65% • $23.5 MM Unsecured and Deferred • Average Exposure $0.4 MM • 96.9% Paying Interest 17

Financial Overview

History of Loan Growth $ in millions Long History of Stable Loan Growth 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q 2Q 2020* 2020** Consumer Commercial *1Q 2020 includes $161MM in COVID-19 line draws **2Q 2020 includes $53MM in COVID-19 line draws and $543MM in PPP loans 19

Second Quarter 2020 Loan Growth $ in millions Loan Growth in Q2 Driven by PPP Loans 543 (107) 11,805 61 (101) 56 11,353 1Q Total Loans Commercial Mortgage Other PPP COVID Line 2Q Total Loans Consumer Paydowns 20

History of Deposit Growth by Segment $ in millions Long History of Core Deposit Growth 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q 20202Q 2020 Consumer Business Public 21

Second Quarter 2020 Deposit Growth $ in millions $1.4 B of Growth Driven by Core Customers 198 30 (41) 17,423 442 738 16,055 1Q Total Commercial Consumer PPP Economic Public 2Q Total Deposits Impact Deposits Payments 22

Deposit Rate Trends $ in millions Well-Managed Deposit Rates and Funding Costs Remain Low 18,000 0.6% 17,500 0.48% 0.5% 0.46% 0.46% 17,000 0.44% 0.43% 0.40% 0.40% 0.38% 0.4% 16,500 0.31% 16,000 0.3% 15,500 0.22% 0.19% 0.2% 0.16% 15,000 0.1% 14,500 14,000 0.0% Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Total Deposit Balance Total Deposit Cost 23

Strong Liquidity Loan to Deposit Ratio Compared with Peers Ample Liquidity to Fund Continued Growth 110% 98% 98% 100% 93% 93% 94% 94% 93% 91% 91% 91% 90% 87% 83% 85% 83% 84% 79% 80% 70% 71% 70% 68% 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 1Q 2Q 2020 2020 Bank of Hawaii Peer Median Note: S&P Regional Bank Index excluding banks greater than $50 B 24

Investment Portfolio & Duration $ in millions Total Investment Portfolio 8,000 AFS HTM Premium Amortization 12 6,003 10 6,000 5,610 5,685 7.5 8 5.8 6.2 4,000 6 2,960 3,004 3,277 4 2,000 2 2,650 2,681 2,726 0 - 2Q 2019 1Q 2020 2Q 2020 Duration 2Q 2019 1Q 2020 2Q 2020 3.54 3.18 3.11 3.28 2.92 2.76 2.83 2.72 2.90 Total AFS HTM Total AFS HTM Total AFS HTM 25

Fortress Capital Position Improving Growth in Risk-Based Capital, Well in Excess of Required Minimums 13.3% 77.5% 13.1% 12.0% 11.8% 12.0% 11.8% 59.0% 10.0% 10.0% 55.3% 8.0% 8.0% 8.0% 8.0% 6.5% 6.5% 6.0% 6.0% 4.5% 4.5% 1Q20 CET1 2Q20 CET1 1Q20 Tier 1 2Q20 Tier 1 1Q20 Total 2Q20 Total BOH 1Q20 BOH 2Q20 $10-50BN Capital Capital Capital Capital 1Q20* Regulatory Minimum Well-Capitalized Excess RWA/Total Assets *S&P Regional Bank Index excluding banks greater than $50BN 26

Significant Excess Capital $ in millions Generating Significant Capital in Excess of Regulatory and Well- Capitalized Minimums $450 $552 $757 $274 $274 $274 $1,094 $821 $615 Common Equity Tier 1 Capital Tier 1 Capital Total Capital Regulatory Minimum Well-Capitalized Excess Note: Values noted are pre-tax capital amounts 27

Financial Summary $ in millions, except per share amounts 2Q 2020 1Q 2020 2Q 2019 ∆ 1Q 2020 ∆ 2Q 2019 Net Interest Income $ 126.7 $ 126.0 $ 124.1 $ 0.7 $ 2.6 Noninterest Income 51.3 46.1 45.4 5.2 5.9 Total Revenue 178.0 172.1 169.5 5.9 8.5 Noninterest Expense 88.9 96.3 92.7 (7.4) (3.8) Operating Income 89.1 75.8 76.8 13.3 12.3 Credit Provision 40.4 33.6 4.0 6.8 36.4 Income Taxes 9.8 7.5 15.9 2.3 (6.1) Net Income $ 38.9 $ 34.7 $ 56.9 $ 4.2 $ (18.0) Diluted EPS $ 0.98 $ 0.87 $ 1.40 $ 0.11 $ (0.42) End of Period Balances Loans & Leases 11,805 11,353 10,759 4.0% 9.7% Total Deposits 17,423 16,055 15,489 8.5% 12.5% Shareholders’ Equity 1,352 1,328 1,286 1.8% 5.1% 28

Performance Metrics 2Q 2020 1Q 2020 2Q 2019 ∆ 1Q 2020 ∆ 2Q 2019 Return on Assets 0.82% 0.77% 1.31% 0.05% -0.49% Return on Equity 11.58% 10.64% 17.97% 0.94% -6.39% Net Interest Margin 2.83% 2.96% 3.04% -0.13% -0.21% Efficiency Ratio 50.0% 56.0% 54.7% -6.0% -4.7% 29

Bank of Hawaii Corporation Second Quarter 2020 Financial Results July 27, 2020

APPENDIX

Residential Mortgage Current LTV 32

Residential Mortgage Monitoring FICO 33

Home Equity Current CLTV 34

Home Equity Monitoring FICO 35

Automobile DTI 36

Automobile Monitoring FICO 37

Other Consumer Delinquency Status 38

Other Consumer Monitoring FICO 39

Commercial & Industrial Leveraged vs Non-Leveraged 40

Commercial Mortgage Current LTV 41

Commercial Mortgage Detail Current LTV 42

Construction Current LTV 43

Lease Financing Leveraged vs Non-Leveraged 44

PPP Loans Loan Size # of Loans Loan Amount ($MM) • Originated more than 4,500 PPP loans for $562MM < $150M 3,805 $132.9 through June 30 $150M - $350M 388 $85.8 • Average loan size of $124,000 $350M - $2MM 290 $210.4 • 84% of loans less than $2MM - $5MM 32 $91.1 $150,000 >$5MM 6 $41.7 Total 4,521 $561.8 45

Strong Mix of Deposits As of June 30, 2020 Solid Base of Core Customers and Core Deposits Public Time Funds 10% 8% Commercial 42% Checking Savings 51% Consumer 39% 50% 92% Core Consumer and 90% Core Checking and Commercial Customers Savings Deposits 46

Conservative Investment Portfolio As of June 30, 2020 Investment Securities Portfolio Consists of High-Quality Securities. Sector Muni 2% Corp 3% • 95% AAA-rated, 100% A-rated or higher • Highly liquid and pledgeable Government / Agency 95% • Secure and reliable cash flows Moody’s Rating Cash Flow AA A 2% 3% Bullets 8% AAA Monthly Payments 95% 92% 47

Disciplined Capital Management $ in millions $300 $250 $200 $150 $100 $50 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q 2020 2Q 2020 Dividends Repurchases Retained for Growth Net Income 48

Note: Historical dividends adjusted for stock splits. YTD 2020 dividend dividend annualized. 2020 YTD HistoricalNote: dividends adjusted for stocksplits. Unbroken HistoryDividendsof $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 1986 1987 1988 Recession 1989 1990 1991 and UnbrokenLong History of Dividends 1992 1993 1994 1995 1996 1997 1998 1999 2000 Recession 2001 2002 2003 2004 2005 2006 2007 CrisisFinancial 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 49

History of Deposit Growth by Product $ in millions 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q 2020 2Q 2020 NIB IB Savings Time 50

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