boh-20200727
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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 ReportJuly 27, 2020
(Date of earliest event reported)
 
BANK OF HAWAII CORP
(Exact name of registrant as specified in its charter)
 
Delaware1-688799-0148992
(State of Incorporation)(Commission File Number)(IRS Employer Identification No.)
 
130 Merchant StreetHonoluluHawaii96813
(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 classTrading SymbolName of each exchange on which registered
Common Stock$.01 Par ValueBOHNew 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, 2020Bank of Hawaii Corporation
  
  
 By:/s/ Mark A. Rossi
       Mark A. Rossi
       Vice Chairman and Corporate Secretary



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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 HighlightsTable 1
Three Months EndedSix Months Ended
June 30,December 31,June 30,June 30,
(dollars in thousands, except per share amounts)20202019201920202019
For the Period:
Operating Results
Net Interest Income$126,691  $125,966  $124,097  $252,657  $248,934  
Provision for Credit Losses40,400  33,600  4,000  74,000  7,000  
Total Noninterest Income51,268  46,149  45,450  97,417  89,129  
Total Noninterest Expense88,892  96,312  92,725  185,204  185,782  
Net Income38,908  34,742  56,919  73,650  115,718  
Basic Earnings Per Share0.98  0.88  1.40  1.86  2.84  
Diluted Earnings Per Share0.98  0.87  1.40  1.85  2.82  
Dividends Declared Per Share0.67  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 Assets7.04  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 Assets19,189,581  18,222,602  17,480,651  18,706,092  17,359,031  
Average Deposits16,679,511  15,817,745  15,162,782  16,248,628  15,067,622  
Average Shareholders' Equity1,351,345  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 Value32.97  32.41  30.83  32.97  30.83  
Market Value
   Closing61.41  54.91  82.91  61.41  82.91  
   High72.74  95.53  84.53  95.53  84.53  
   Low51.15  46.70  75.24  46.70  66.54  
June 30,March 31,December 31,June 30,
2020202020192019
As of Period End:
Balance Sheet Totals
Loans and Leases$11,805,370  $11,352,780  $10,990,892  $10,759,129  
Total Assets19,769,942  18,542,233  18,095,496  17,688,845  
Total Deposits17,423,155  16,055,361  15,784,482  15,488,821  
Other Debt60,524  60,545  85,565  110,605  
Total Shareholders' Equity1,352,082  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 Losses173,439  138,150  110,027  107,672  
Allowance to Loans and Leases Outstanding1.47  %1.22  %1.00  %1.00  %
Capital Ratios 4
Common Equity Tier 1 Capital Ratio12.04  %11.81  %12.18  %12.46  %
Tier 1 Capital Ratio12.04  11.81  12.18  12.46  
Total Capital Ratio13.29  13.06  13.28  13.57  
Tier 1 Leverage Ratio6.90  7.12  7.25  7.36  
Total Shareholders' Equity to Total Assets6.84  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  
Branches67  67  68  68  
ATMs367  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
Reconciliation of Non-GAAP Financial MeasuresTable 2
June 30,March 31,December 31,June 30,
(dollars in thousands)2020202020192019
Total Shareholders' Equity$1,352,082  $1,327,929  $1,286,832  $1,285,948  
Less:Goodwill31,517  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:Goodwill31,517  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
   with prescribed regulatory requirements$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.




Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income Table 3
Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,
(dollars in thousands, except per share amounts)20202020201920202019
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-Sale14,576  16,711  15,072  31,287  28,504  
      Held-to-Maturity16,723  19,252  22,149  35,975  44,070  
   Deposits1  9  9  10  24  
   Funds Sold 92  546  730  638  2,174  
   Other125  218  210  343  529  
Total Interest Income139,145  144,946  148,571  284,091  294,213  
Interest Expense
   Deposits7,954  14,260  18,628  22,214  33,912  
   Securities Sold Under Agreements to Repurchase4,020  4,025  4,623  8,045  9,194  
   Funds Purchased18  72  512  90  669  
   Short-Term Borrowings22  39  1  61  37  
   Other Debt440  584  710  1,024  1,467  
Total Interest Expense12,454  18,980  24,474  31,434  45,279  
Net Interest Income126,691  125,966  124,097  252,657  248,934  
Provision for Credit Losses40,400  33,600  4,000  74,000  7,000  
Net Interest Income After Provision for Credit Losses86,291  92,366  120,097  178,657  241,934  
Noninterest Income
   Trust and Asset Management10,550  10,915  11,385  21,465  22,146  
   Mortgage Banking4,278  2,695  3,336  6,973  5,623  
   Service Charges on Deposit Accounts5,097  7,451  7,283  12,548  14,647  
   Fees, Exchange, and Other Service Charges9,417  13,200  14,252  22,617  28,460  
   Investment Securities Gains (Losses), Net13,216  (970) (776) 12,246  (1,611) 
   Annuity and Insurance883  928  1,806  1,811  4,384  
   Bank-Owned Life Insurance1,649  1,580  1,779  3,229  3,489  
   Other6,178  10,350  6,385  16,528  11,991  
Total Noninterest Income51,268  46,149  45,450  97,417  89,129  
Noninterest Expense
   Salaries and Benefits50,715  54,463  53,511  105,178  110,097  
   Net Occupancy8,761  8,955  8,579  17,716  16,173  
   Net Equipment8,195  8,456  6,895  16,651  13,728  
   Data Processing4,416  4,788  4,727  9,204  9,253  
   Professional Fees3,061  3,208  2,177  6,269  4,630  
   FDIC Insurance1,558  1,456  1,290  3,014  2,559  
   Other 12,186  14,986  15,546  27,172  29,342  
Total Noninterest Expense88,892  96,312  92,725  185,204  185,782  
Income Before Provision for Income Taxes48,667  42,203  72,822  90,870  145,281  
Provision for Income Taxes9,759  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 Shares39,703,735  39,681,611  40,541,594  39,692,695  40,738,772  
Diluted Weighted Average Shares39,832,475  39,916,986  40,769,767  39,873,334  40,988,001  



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive IncomeTable 4
Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,
(dollars in thousands)20202020201920202019
Net Income$38,908  $34,742  $56,919  $73,650  $115,718  
Other Comprehensive Income, Net of Tax:
Net Unrealized Gains on Investment Securities7,730  41,559  16,209  49,289  23,128  
Defined Benefit Plans374  374  245  748  491  
Other Comprehensive Income8,104  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
Consolidated Statements of ConditionTable 5
June 30,March 31,December 31,June 30,
(dollars in thousands)2020202020192019
Assets
Interest-Bearing Deposits in Other Banks$2,310  $6,346  $4,979  $3,859  
Funds Sold800,857  96,898  254,574  204,340  
Investment Securities
   Available-for-Sale2,726,478  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)3,276,829  3,004,139  3,042,294  2,959,611  
Loans Held for Sale20,711  20,789  39,062  22,706  
Loans and Leases11,805,370  11,352,780  10,990,892  10,759,129  
   Allowance for Loan and Lease Losses(173,439) (138,150) (110,027) (107,672) 
     Net Loans and Leases11,631,931  11,214,630  10,880,865  10,651,457  
Total Earning Assets18,459,116  17,023,851  16,840,777  16,491,922  
Cash and Due from Banks242,423  453,465  299,105  282,164  
Premises and Equipment, Net198,582  196,228  188,388  169,671  
Operating Lease Right-of-Use Assets97,166  98,695  100,838  103,336  
Accrued Interest Receivable50,645  46,996  46,476  49,726  
Foreclosed Real Estate2,506  2,506  2,737  2,737  
Mortgage Servicing Rights22,904  22,537  25,022  24,233  
Goodwill 31,517  31,517  31,517  31,517  
Bank-Owned Life Insurance291,185  289,536  287,962  285,295  
Other Assets373,898  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  $4,528,251  
   Interest-Bearing Demand3,437,654  3,261,101  3,127,205  3,033,066  
   Savings6,821,710  6,670,530  6,365,321  6,004,528  
   Time1,678,776  1,744,812  1,802,431  1,922,976  
Total Deposits17,423,155  16,055,361  15,784,482  15,488,821  
Funds Purchased—  75,000  —  —  
Short-Term Borrowings—  75,000  —  —  
Securities Sold Under Agreements to Repurchase603,206  603,206  604,306  504,299  
Other Debt 60,524  60,545  85,565  110,605  
Operating Lease Liabilities104,741  106,180  108,210  110,483  
Retirement Benefits Payable43,833  44,124  44,504  40,047  
Accrued Interest Payable7,775  7,932  8,040  9,454  
Taxes Payable and Deferred Taxes38,297  32,793  16,085  21,337  
Other Liabilities136,329  154,163  157,472  117,851  
Total Liabilities18,417,860  17,214,304  16,808,664  16,402,897  
Shareholders' Equity
Common Stock ($.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)580  579  579  579  
Capital Surplus586,946  584,392  582,566  577,346  
Accumulated Other Comprehensive Gain (Loss)18,925  10,821  (31,112) (27,424) 
Retained Earnings1,786,351  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)(1,040,720) (1,041,470) (1,026,616) (969,546) 
Total Shareholders' Equity1,352,082  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  




Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity Table 6
Accum.
Other
Compre-
hensive
Common SharesCommonCapitalIncomeRetainedTreasury
(dollars in thousands)OutstandingStockSurplus(Loss)EarningsStockTotal
Balance as of December 31, 201940,039,695  $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
  Compensation Plans 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, 202040,047,694  $580  $586,946  $18,925  $1,786,351  $(1,040,720) $1,352,082  
Balance as of December 31, 201841,499,898  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
 Compensation Plans 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, 201940,687,719  $579  $577,346  $(27,424) $1,704,993  $(969,546) $1,285,948  




Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent BasisTable 7a
Three Months EndedThree Months EndedThree Months Ended
June 30, 2020March 31, 2020June 30, 2019
AverageIncome/Yield/AverageIncome/Yield/AverageIncome/Yield/
(dollars in millions)BalanceExpenseRateBalanceExpenseRateBalanceExpenseRate
Earning Assets
Interest-Bearing Deposits in Other Banks$2.6  $—  0.18  %$1.4  $—  2.36  %$2.9  $—  1.25  %
Funds Sold545.9  0.1  0.07  152.8  0.6  1.41  123.6  0.8  2.34  
Investment Securities
Available-for-Sale
   Taxable2,614.1  14.3  2.19  2,702.4  16.4  2.43  2,004.3  14.3  2.87  
   Non-Taxable32.2  0.4  4.45  32.4  0.4  4.40  86.8  0.9  4.15  
Held-to-Maturity
   Taxable2,957.6  16.4  2.22  3,036.2  18.9  2.50  3,358.0  21.0  2.50  
   Non-Taxable54.4  0.4  2.66  54.7  0.4  2.67  193.0  1.5  3.08  
Total Investment Securities5,658.3  31.5  2.22  5,825.7  36.1  2.48  5,642.1  37.7  2.68  
Loans Held for Sale23.4  0.2  3.24  23.2  0.2  3.54  18.7  0.2  4.05  
Loans and Leases 1
Commercial and Industrial 1,963.8  17.9  3.67  1,409.3  13.2  3.77  1,385.7  14.9  4.31  
Commercial Mortgage2,622.9  22.3  3.42  2,549.4  25.1  3.96  2,386.3  25.9  4.35  
Construction255.8  2.5  3.93  213.2  2.5  4.65  125.3  1.7  5.51  
Commercial Lease Financing110.9  0.5  1.88  111.4  0.5  1.95  159.9  1.0  2.49  
Residential Mortgage3,939.6  36.0  3.65  3,895.4  36.9  3.79  3,730.4  36.0  3.87  
Home Equity1,665.2  14.3  3.45  1,680.2  15.2  3.64  1,694.9  16.2  3.83  
Automobile701.2  6.2  3.55  721.0  6.4  3.56  688.5  6.2  3.62  
Other 2
468.2  7.9  6.77  480.8  8.4  7.06  460.6  8.4  7.33  
Total Loans and Leases11,727.6  107.6  3.68  11,060.7  108.2  3.93  10,631.6  110.3  4.16  
Other34.0  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 Banks302.4  278.8  241.6  
Other Assets895.4  845.7  785.2  
Total Assets$19,189.6  $18,222.6  $17,480.7  
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand$3,226.6  0.6  0.07  $3,110.0  1.0  0.12  $2,902.5  1.4  0.19  
Savings6,691.4  2.2  0.13  6,502.4  7.1  0.44  6,002.0  8.9  0.60  
Time1,826.8  5.2  1.13  1,743.0  6.2  1.43  1,866.6  8.3  1.79  
Total Interest-Bearing Deposits11,744.8  8.0  0.27  11,355.4  14.3  0.51  10,771.1  18.6  0.69  
Short-Term Borrowings57.6  —  0.28  57.8  0.1  0.76  82.3  0.5  2.46  
Securities Sold Under Agreements to Repurchase602.9  4.0  2.64  604.1  4.0  2.64  504.3  4.7  3.63  
Other Debt60.5  0.5  2.91  66.9  0.6  3.51  110.6  0.7  2.57  
Total Interest-Bearing Liabilities12,465.8  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  
Interest Rate Spread2.71  %2.78  %2.78  %
Net Interest Margin2.83  %2.96  %3.04  %
Noninterest-Bearing Demand Deposits 4,934.7  4,462.3  4,391.7  
Other Liabilities437.8  362.3  350.5  
Shareholders' Equity1,351.3  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
for the three months ended June 30, 2020, March 31, 2020, and June 30, 2019, respectively.




Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent BasisTable 7b
Six Months EndedSix Months Ended
June 30, 2020June 30, 2019
AverageIncome/Yield/AverageIncome/Yield/
(dollars in millions)BalanceExpenseRateBalanceExpenseRate
Earning Assets
Interest-Bearing Deposits in Other Banks$2.0  $—  0.96  %$2.9  $—  1.65  %
Funds Sold349.3  0.6  0.36  182.3  2.2  2.37  
Investment Securities
Available-for-Sale
   Taxable2,658.3  30.8  2.31  1,801.2  25.9  2.88  
   Non-Taxable32.3  0.7  4.43  182.5  3.3  3.63  
Held-to-Maturity
   Taxable2,996.9  35.4  2.36  3,365.7  41.5  2.46  
   Non-Taxable54.5  0.7  2.67  213.4  3.3  3.12  
Total Investment Securities5,742.0  67.6  2.35  5,562.8  74.0  2.66  
Loans Held for Sale23.3  0.4  3.39  15.6  0.3  4.16  
Loans and Leases 1
Commercial and Industrial 1,686.5  31.1  3.71  1,371.8  30.2  4.43  
Commercial Mortgage2,586.2  47.4  3.69  2,348.6  50.7  4.36  
Construction234.6  5.0  4.26  137.8  3.6  5.27  
Commercial Lease Financing111.1  1.1  1.91  160.4  1.9  2.38  
Residential Mortgage3,917.5  72.9  3.72  3,705.4  71.5  3.86  
Home Equity1,672.7  29.5  3.55  1,692.5  32.3  3.85  
Automobile711.1  12.6  3.56  678.4  12.3  3.64  
Other 2
474.5  16.3  6.92  455.0  16.3  7.23  
Total Loans and Leases11,394.2  215.9  3.80  10,549.9  218.8  4.17  
Other34.2  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 Banks290.6  241.2  
Other Assets870.5  769.1  
Total Assets$18,706.1  $17,359.0  
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand$3,168.3  1.5  0.10  $2,921.1  2.8  0.20  
Savings6,596.9  9.3  0.28  5,882.1  15.7  0.54  
Time1,784.9  11.4  1.28  1,785.4  15.4  1.74  
Total Interest-Bearing Deposits11,550.1  22.2  0.39  10,588.6  33.9  0.65  
Short-Term Borrowings57.7  0.2  0.52  56.8  0.7  2.47  
Securities Sold Under Agreements to Repurchase603.5  8.0  2.64  504.3  9.2  3.63  
Other Debt63.7  1.0  3.23  115.3  1.5  2.56  
Total Interest-Bearing Liabilities12,275.0  31.4  0.51  11,265.0  45.3  0.81  
Net Interest Income$253.4  $250.5  
Interest Rate Spread2.75   % 2.82   %
Net Interest Margin2.90   % 3.08   %
Noninterest-Bearing Demand Deposits 4,698.5  4,479.0  
Other Liabilities400.0  346.2  
Shareholders' Equity1,332.6  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
for the six months ended June 30, 2020 and June 30, 2019, respectively.




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 Sold0.4  $(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 Industrial5.1  (0.4) 4.7  
   Commercial Mortgage0.7  (3.5) (2.8) 
   Construction0.4  (0.4) —  
   Residential Mortgage0.4  (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 Leases6.1  (6.7) (0.6) 
Other—  (0.1) (0.1) 
Total Change in Interest Income5.5  (11.3) (5.8) 
Change in Interest Expense:
Interest-Bearing Deposits
   Demand—  (0.4) (0.4) 
   Savings0.2  (5.1) (4.9) 
   Time0.3  (1.3) (1.0) 
Total Interest-Bearing Deposits0.5  (6.8) (6.3) 
Short-Term Borrowings—  (0.1) (0.1) 
Other Debt(0.1) —  (0.1) 
Total Change in Interest Expense0.4  (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
      Taxable3.8  (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 Industrial5.5  (2.5) 3.0  
   Commercial Mortgage2.3  (5.9) (3.6) 
   Construction1.4  (0.6) 0.8  
   Commercial Lease Financing(0.3) (0.2) (0.5) 
   Residential Mortgage2.0  (2.0) —  
   Home Equity(0.3) (1.6) (1.9) 
   Automobile0.1  (0.1) —  
   Other 2
0.1  (0.6) (0.5) 
Total Loans and Leases10.8  (13.5) (2.7) 
Other—  (0.1) (0.1) 
Total Change in Interest Income11.3  (21.0) (9.7) 
Change in Interest Expense:
Interest-Bearing Deposits
   Demand0.1  (0.9) (0.8) 
   Savings0.9  (7.6) (6.7) 
   Time(0.1) (3.0) (3.1) 
Total Interest-Bearing Deposits0.9  (11.5) (10.6) 
Short-Term Borrowings(0.1) (0.4) (0.5) 
Securities Sold Under Agreements to Repurchase0.8  (1.5) (0.7) 
Other Debt(0.4) 0.2  (0.2) 
Total Change in Interest Expense1.2  (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
      Taxable10.7  (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 Securities0.9  (7.3) (6.4) 
Loans Held for Sale0.1  —  0.1  
Loans and Leases
   Commercial and Industrial6.3  (5.4) 0.9  
   Commercial Mortgage4.9  (8.2) (3.3) 
   Construction2.2  (0.8) 1.4  
   Commercial Lease Financing(0.5) (0.3) (0.8) 
   Residential Mortgage4.0  (2.6) 1.4  
   Home Equity(0.4) (2.4) (2.8) 
   Automobile0.6  (0.3) 0.3  
   Other 2
0.7  (0.7) —  
Total Loans and Leases17.8  (20.7) (2.9) 
Other—  (0.2) (0.2) 
Total Change in Interest Income19.9  (30.9) (11.0) 
Change in Interest Expense:
Interest-Bearing Deposits
   Demand0.2  (1.5) (1.3) 
   Savings1.7  (8.1) (6.4) 
   Time—  (4.0) (4.0) 
Total Interest-Bearing Deposits1.9  (13.6) (11.7) 
Short-Term Borrowings—  (0.5) (0.5) 
Securities Sold Under Agreements to Repurchase1.6  (2.8) (1.2) 
Other Debt(0.8) 0.3  (0.5) 
Total Change in Interest Expense2.7  (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 EndedSix Months Ended
June 30,March 31,June 30,June 30,
(dollars in thousands)20202020201920202019
Salaries$32,739  $33,486  $32,834  $66,225  $65,314  
Incentive Compensation3,141  245  5,464  3,386  11,368  
Share-Based Compensation2,021  1,291  1,994  3,312  5,073  
Commission Expense1,647  1,374  1,704  3,021  2,634  
Retirement and Other Benefits4,446  4,706  4,580  9,152  9,687  
Payroll Taxes2,782  4,543  2,643  7,325  6,890  
Medical, Dental, and Life Insurance3,830  4,142  3,926  7,972  8,391  
Separation Expense109  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)20202020201920192019
Commercial
Commercial and Industrial$1,956,939  $1,558,232  $1,379,152  $1,361,011  $1,408,729  
Commercial Mortgage2,707,534  2,616,243  2,518,051  2,477,296  2,411,289  
Construction245,099  245,390  194,170  154,754  119,228  
Lease Financing113,187  110,704  122,454  163,672  163,070  
Total Commercial5,022,759  4,530,569  4,213,827  4,156,733  4,102,316  
Consumer
Residential Mortgage3,989,393  3,928,183  3,891,100  3,846,511  3,785,006  
Home Equity1,640,887  1,692,154  1,676,073  1,681,951  1,694,577  
Automobile700,702  716,214  720,286  713,424  703,523  
Other 1
451,629  485,660  489,606  482,679  473,707  
Total Consumer6,782,611  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)20202020201920192019
Consumer$8,766,885  $8,294,464  $8,118,494  $7,893,454  $7,880,284  
Commercial7,295,033  6,358,583  6,324,214  6,153,492  6,178,984  
Public and Other1,361,237  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)20202020201920192019
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial$459  $634  $830  $573  $552  
Commercial Mortgage8,672  9,048  9,244  11,088  11,310  
Total Commercial9,131  9,682  10,074  11,661  11,862  
Consumer
Residential Mortgage5,888  4,330  4,125  4,258  4,697  
Home Equity5,176  4,086  3,181  2,787  2,486  
Total Consumer11,064  8,416  7,306  7,045  7,183  
Total Non-Accrual Loans and Leases20,195  18,098  17,380  18,706  19,045  
Foreclosed Real Estate2,506  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 Equity3,519  3,426  4,125  2,320  2,981  
Automobile133  866  949  582  607  
Other 1
296  1,205  1,493  1,076  963  
Total Consumer8,885  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 Leases0.17 %0.16 %0.16 %0.17 %0.18 %
Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate0.19 %0.18 %0.18 %0.20 %0.20 %
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and
Leases and Commercial Foreclosed Real Estate0.18 %0.21 %0.24 %0.28 %0.29 %
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate0.20 %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 Estate0.27 %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 LossesTable 12
Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,
(dollars in thousands)20202020201920202019
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 Industrial1,524  289  401  1,813  902  
Commercial Mortgage—  40  —  40  —  
Consumer
Residential Mortgage118  263  95  381  579  
Home Equity321  976  746  1,297  1,334  
Automobile547  1,005  908  1,552  1,789  
Other 1
662  864  628  1,526  1,332  
Total Recoveries on Loans and Leases Previously Charged-Off3,172  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 Losses40,400  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 Commitments2,519  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 InformationTable 13a
ConsumerCommercialTreasuryConsolidated
(dollars in thousands)BankingBankingand OtherTotal
Three Months Ended June 30, 2020
Net Interest Income$73,221  $51,219  $2,251  $126,691  
Provision for Credit Losses6,137  (1,025) 35,288  40,400  
Net Interest Income (Loss) After Provision for Credit Losses67,084  52,244  (33,037) 86,291  
Noninterest Income28,943  7,076  15,249  51,268  
Noninterest Expense(70,744) (14,776) (3,372) (88,892) 
Income (Loss) Before Provision for Income Taxes25,283  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 Losses2,526  (175) 1,649  4,000  
Net Interest Income (Loss) After Provision for Credit Losses74,537  45,878  (318) 120,097  
Noninterest Income35,967  6,938  2,545  45,450  
Noninterest Expense(68,543) (21,260) (2,922) (92,725) 
Income (Loss) Before Provision for Income Taxes41,961  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 InformationTable 13b
ConsumerCommercialTreasuryConsolidated
(dollars in thousands)BankingBankingand OtherTotal
Six Months Ended June 30, 2020 1
Net Interest Income$147,135  $96,456  $9,066  $252,657  
Provision for Credit Losses9,588  (735) 65,147  74,000  
Net Interest Income (Loss) After Provision for Credit Losses137,547  97,191  (56,081) 178,657  
Noninterest Income61,533  18,811  17,073  97,417  
Noninterest Expense(141,644) (32,122) (11,438) (185,204) 
Income (Loss) Before Provision for Income Taxes57,436  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 Losses4,750  1,271  979  7,000  
Net Interest Income After Provision for Credit Losses148,665  91,722  1,547  241,934  
Noninterest Income70,445  13,999  4,685  89,129  
Noninterest Expense(137,970) (42,215) (5,597) (185,782) 
Income Before Provision for Income Taxes81,140  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 DataTable 14
Three Months Ended
June 30,March 31,December 31,September 30,June 30,
(dollars in thousands, except per share amounts)20202020201920192019
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-Sale14,576  16,711  16,158  17,512  15,072  
      Held-to-Maturity16,723  19,252  18,750  18,796  22,149  
   Deposits1  9  8  9  9  
   Funds Sold92  546  723  656  730  
   Other125  218  239  233  210  
Total Interest Income139,145  144,946  145,101  148,083  148,571  
Interest Expense
   Deposits7,954  14,260  16,407  18,055  18,628  
   Securities Sold Under Agreements to Repurchase4,020  4,025  4,071  4,257  4,623  
   Funds Purchased18  72  25  146  512  
   Short-Term Borrowings22  39  —  1  1  
   Other Debt440  584  713  728  710  
Total Interest Expense12,454  18,980  21,216  23,187  24,474  
Net Interest Income126,691  125,966  123,885  124,896  124,097  
Provision for Credit Losses40,400  33,600  4,750  4,250  4,000  
Net Interest Income After Provision for Credit Losses86,291  92,366  119,135  120,646  120,097  
Noninterest Income
   Trust and Asset Management10,550  10,915  11,157  10,930  11,385  
   Mortgage Banking4,278  2,695  3,199  4,864  3,336  
   Service Charges on Deposit Accounts5,097  7,451  7,835  7,592  7,283  
   Fees, Exchange, and Other Service Charges9,417  13,200  14,533  14,900  14,252  
   Investment Securities Gains (Losses), Net13,216  (970) (906) (1,469) (776) 
   Annuity and Insurance883  928  1,272  1,278  1,806  
   Bank-Owned Life Insurance1,649  1,580  1,879  1,647  1,779  
   Other6,178  10,350  8,733  6,765  6,385  
Total Noninterest Income51,268  46,149  47,702  46,507  45,450  
Noninterest Expense
   Salaries and Benefits50,715  54,463  51,664  54,345  53,511  
   Net Occupancy8,761  8,955  8,824  8,803  8,579  
   Net Equipment8,195  8,456  7,930  7,637  6,895  
   Data Processing4,416  4,788  4,828  4,676  4,727  
   Professional Fees3,061  3,208  3,257  2,184  2,177  
   FDIC Insurance1,558  1,456  1,376  1,257  1,290  
   Other 12,186  14,986  15,217  21,447  15,546  
Total Noninterest Expense88,892  96,312  93,096  100,349  92,725  
Income Before Provision for Income Taxes48,667  42,203  73,741  66,804  72,822  
Provision for Income Taxes9,759  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 Assets19,769,942  18,542,233  18,095,496  17,672,140  17,688,845  
Total Deposits17,423,155  16,055,361  15,784,482  15,340,752  15,488,821  
Total Shareholders' Equity1,352,082  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 EndedYear Ended
($ in millions; jobs in thousands)May 31, 2020December 31, 2019December 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)202020192018
Unemployment 3
  Statewide, seasonally adjusted13.9  %2.7  %2.6  %
   Oahu12.5  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)2020201920182017
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 Inventory2.5  2.5  2.8  2.1  
Monthly Visitor Arrivals,Percentage Change
(in thousands)Not Seasonally Adjustedfrom Previous Year
Tourism 5
May 31, 20209.1  (98.9) 
April 30, 20204.6  (99.5) 
March 31, 2020434.9  (53.7) 
February 29, 2020828.1  5.8  
January 31, 2020862.6  5.1  
December 31, 2019954.3  6.0  
November 30, 2019811.4  4.2  
October 31, 2019800.4  4.8  
September 30, 2019741.3  3.5  
August 31, 2019928.2  9.8  
July 31, 2019997.9  6.2  
June 30, 2019951.6  6.1  
May 31, 2019841.4  4.6  
April 30, 2019856.3  6.6  
March 31, 2019939.1  3.9  
February 28, 2019782.7  0.5  
January 31, 2019820.6  3.0  
December 31, 2018900.2  2.3  
November 30, 2018778.5  3.9  
October 31, 2018763.7  3.5  
September 30, 2018716.1  2.2  
August 31, 2018845.1  3.2  
July 31, 2018939.4  5.3  
June 30, 2018897.1  7.3  
May 31, 2018804.1  7.0  
April 30, 2018803.0  6.6  
March 31, 2018903.6  12.5  
February 28, 2018778.6  10.3  
January 31, 2018796.5  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


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