Equibles

8-K

BANK OF HAWAII CORP (BOH)

8-K 2024-07-22 For: 2024-07-22
View Original
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 22, 2024
(Date of earliest event reported)

BANK OF HAWAII CORPORATION

(Exact name of registrant as specified in its charter)

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

(888) 643-3888

(Registrant's telephone number, including area code)

Not Applicable

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

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

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.01 per share BOH New York Stock Exchange
Depository Shares, Each Representing 1/40th Interest in a Share of 4.375% Fixed Rate Non-Cumulative Preferred Stock, Series A BOH.PRA New York Stock Exchange
Depository Shares, Each Representing 1/40th Interest in a Share of 8.000% Fixed Rate Non-Cumulative Preferred Stock, Series B BOH.PRB New York Stock Exchange

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

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

Emerging growth company ☐

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

Item 2.02. Results of Operations and Financial Condition.

On July 22, 2024, Bank of Hawaii Corporation announced its results of operations for the quarter ended June 30, 2024. 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 22, 2024 Press Release: Bank of Hawaii Corporation Second Quarter 2024 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 2024 Financial Report
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 22, 2024 Bank of Hawaii Corporation
By: /s/ Patrick M. McGuirk
Patrick M. McGuirk
Vice Chair and Chief Administrative Officer

EX-99.1

Exhibit 99.1

img208590026_0.jpg

Bank of Hawai‘i Corporation Second Quarter 2024 Financial Results

  • Diluted Earnings Per Common Share $0.81
  • Net Income $34.1 Million
  • Net Interest Margin 2.15%
  • Board of Directors Declares Dividend of $0.70 Per Common Share
  • Industry-wide FDIC Special Assessment Resulted in a $2.6 Million Non-Recurring Charge in the Second Quarter of 2024
  • Raised $165 million in connection with preferred stock offering in late June

FOR IMMEDIATE RELEASE

HONOLULU, HI (July 22, 2024) -- Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $0.81 for the second quarter of 2024, compared with diluted earnings per common share of $0.87 in the previous quarter and $1.12 in the same quarter of 2023. An industry-wide FDIC Special Assessment resulted in a $2.6 million one-time charge in the second quarter of 2024 which negatively impacted diluted earnings per common share by $0.05. Net income for the second quarter of 2024 was $34.1 million, down 6.3% from the previous quarter and down 26.0% from the same quarter of 2023. The return on average common equity for the second quarter of 2024 was 10.41% compared with 11.20% in the previous quarter and 14.95% in the same quarter of 2023.

“Bank of Hawai‘i delivered strong financial results in the second quarter of 2024,” said Peter Ho, Chairman and CEO. “Credit quality remained exceptional with non-performing assets of 0.11% at quarter end and net charge-offs of 0.10% during the quarter. Our net interest margin increased by 4 basis points as we continued to benefit from cashflows repricing. Our core noninterest income remained steady while core noninterest expense increased by 2.0%. Average deposits were down by 0.9% and average loans were down modestly. Finally, we successfully closed a preferred stock offering in late June, strengthening our already strong capital levels.”

Financial Highlights

Net interest income for the second quarter of 2024 was $114.8 million, an increase of 0.8% from the previous quarter and a decrease of 7.6% from the same quarter of 2023. Net interest margin was 2.15% in the second quarter of 2024, an increase of 4 basis points from the previous quarter and a decrease of 7 basis points from the same quarter of 2023. The increases from the prior quarter were primarily due to higher earning asset yields, partially offset by higher funding costs. The decreases from the same period in 2023 were primarily due to higher funding costs, partially offset by higher earning asset yields.

  • more -

img208590026_1.jpg

Bank of Hawai‘i Corporation Second Quarter 2024 Financial Results Page 2

The average yield on loans and leases was 4.76% in the second quarter of 2024, up 13 basis points from the prior quarter and up 57 basis points from the same quarter of 2023. The average yield on total earning assets was 3.99% in the second quarter of 2024, up 10 basis points from the prior quarter and up 43 basis points from the same quarter of 2023. The average cost of interest-bearing deposits was 2.46% in the second quarter of 2024, up 7 basis points from the prior quarter and up 92 basis points from the same quarter of 2023. The average cost of total deposits, including noninterest-bearing deposits, was 1.81%, up 7 basis points from the prior quarter and up 73 basis points from the same quarter of 2023. The changes in yields and rates over the linked quarter and year over year period reflected deposit mix shift and repricing.

Noninterest income was $42.1 million in the second quarter of 2024, a decrease of 0.5% from the previous quarter and a decrease of 2.7% from the same period in 2023. Noninterest income in the second quarter of 2023 included $1.5 million from the sale of a low-income housing tax credit investment. Adjusted for this item, noninterest income increased by 0.9% from adjusted noninterest income in the same period in 2023.

Noninterest expense was $109.2 million in the second quarter of 2024, an increase of 3.2% from the previous quarter and an increase of 5.0% from the same quarter of 2023. As discussed above, noninterest expense in the second quarter of 2024 included an industry-wide FDIC Special Assessment of $2.6 million, as well as separation expenses of $0.8 million, while noninterest expense in the first quarter of 2024 included seasonal payroll expenses of approximately $2.2 million and separation expenses of $0.5 million. Adjusted noninterest expense in the second quarter of 2024 was $105.9 million, up 2.6% from adjusted noninterest expense in the previous quarter and up 1.8% from the same period in 2023.

The effective tax rate for the second quarter of 2024 was 24.77% compared with 24.76% in the previous quarter and 24.57% during the same quarter of 2023.

Asset Quality

The Company’s overall asset quality remained strong during the second quarter of 2024. Provision for credit losses for the second quarter of 2024 was $2.4 million compared with $2.0 million in the previous quarter and $2.5 million in the same quarter of 2023.

Total non-performing assets were $15.2 million at June 30, 2024, up $3.3 million from March 31, 2024 and up $3.7 million from June 30, 2023. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.11% at the end of the quarter, an increase of 2 basis points from the end of the prior quarter and an increase of 3 basis points from the same quarter of 2023.

Net loan and lease charge-offs during the second quarter of 2024 were $3.4 million or 10 basis points annualized of total average loans and leases outstanding. Net loan and lease charge-offs for the second quarter of 2024 were comprised of charge-offs of $4.8 million partially offset by recoveries of $1.4 million. Compared to the prior quarter, net loan and lease charge-offs increased by $1.1 million or 3 basis points annualized on total average loans and leases outstanding. Compared to the same quarter of 2023, net loan and lease charge-offs increased by $2.0 million or 6 basis points annualized on total average loans and leases outstanding.

  • more -
Bank of Hawai‘i Corporation Second Quarter 2024 Financial Results Page 3

The allowance for credit losses on loans and leases was $147.5 million at June 30, 2024, a decrease of $0.2 million from March 31, 2024 and an increase of $2.1 million from June 30, 2023. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.07% at the end of the quarter, flat from the end of the prior quarter and up 3 basis points from the same quarter of 2023.

Balance Sheet

Total assets were $23.3 billion at June 30, 2024, a decrease of 0.5% from March 31, 2024 and a decrease of 6.6% from June 30, 2023. The decrease from the prior quarter was primarily due to decreases in investment securities and funds sold partially offset by an increase in cash and due from banks. The decrease from the same period in 2023 was primarily due to decreases in our investment securities and funds sold.

The investment securities portfolio was $7.1 billion at June 30, 2024, a decrease of 2.1% from March 31, 2024 and a decrease of 9.6% from June 30, 2023. This linked quarter decrease was primarily due to cashflows from the portfolio not being reinvested into securities. The decrease from the same quarter of 2023 was due to the sale of $159.1 million of investment securities in the third quarter of 2023, as well as cashflows from the portfolio not being reinvested into securities. The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises

Total loans and leases were $13.8 billion at June 30, 2024, a decrease of 0.2% from March 31, 2024 and a decrease of 0.6% from June 30, 2023. Total commercial loans were $5.8 billion at June 30, 2024, an increase of 0.7% from the prior quarter and an increase of 3.6% from the same quarter of 2023. The increase from the prior quarter was primarily due to increases in commercial mortgage and commercial and industrial portfolios. The increase from the same period in 2023 was primarily due to increases in our commercial and industrial and construction portfolios, partially offset by a decrease in commercial mortgage. Total consumer loans were $8.0 billion at June 30, 2024, a decrease of 0.8% from the prior quarter and a decrease of 3.5% from the same period in 2023. The decreases were primarily due to decreases in our residential mortgage, home equity and automobile portfolios.

Total deposits were $20.4 billion at June 30, 2024, a decrease of 1.3% from March 31, 2024 and a decrease of 0.5% from June 30, 2023. Noninterest-bearing deposits made up 26% of total deposit balances at June 30, 2024, down from 27% at March 31, 2024 and down from 29% at June 30, 2023. Average total deposits were $20.4 billion for the second quarter of 2024, down 0.9% from $20.5 billion in the prior quarter and up 1.7% from $20.0 billion in the second quarter of 2023. Insured and uninsured but collateralized deposits represented 59% of total deposit balances at June 30, 2024, up from 58% at March 31, 2024 and down from 61% at June 30, 2023. At the end of the quarter, our readily available liquidity of $10.0 billion exceeded total uninsured and uncollateralized deposits.

Capital and Dividends

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

In the second quarter of 2024, the Company issued $165 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, at a rate of 8.000%. The Company received net proceeds from the offering of $160.6 million after issuance cost.

  • more –
Bank of Hawai‘i Corporation Second Quarter 2024 Financial Results Page 4

The Tier 1 Capital Ratio was 13.99% at June 30, 2024 compared with 12.74% at March 31, 2024 and 12.21% at June 30, 2023. The Tier 1 Leverage Ratio was 8.37% at June 30, 2024, up 75 basis points from 7.62% at March 31, 2024 and up 116 basis points from 7.21% at June 30, 2023. The increases were primarily due to higher Tier 1 capital as a result of the Series B Preferred Stock offering, discussed above, retained earnings growth and decreases in risk-weighted assets and average total assets.

No shares of common stock were repurchased under the share repurchase program in the second quarter of 2024. Total remaining buyback authority under the share repurchase program was $126.0 million at June 30, 2024.

The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on September 16, 2024 to shareholders of record at the close of business on August 30, 2024.

On July 8, 2024, the Company announced that the Board of Directors declared a quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, and a quarterly dividend payment of $8.89 per share, equivalent to $0.2223 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B. The depositary shares representing the Series A Preferred Stock and Series B Preferred Stock are traded on the NYSE under the symbol “BOH.PRA” and “BOH.PRB”, respectively. The dividends on the Series A Preferred Stock and Series B Preferred Stock will be payable on August 1, 2024 to shareholders of record of the preferred stock as of the close of business on July 18, 2024.

Conference Call Information

The Company will review its second quarter financial results today at 8:00 a.m. Hawai‘i Time (2:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawai‘i Corporation's website, www.boh.com. The webcast can be accessed via the link: https://register.vevent.com/register/BI199e7796d16b4ac8844dd7c346201625. A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawai‘i Time on Monday, July 22, 2024. The replay will be available on the Company's website, www.boh.com.

Investor Announcements

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

  • more –
Bank of Hawai‘i Corporation Second Quarter 2024 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" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawai‘i Corporation's Annual Report on Form 10-K for the year ended December 31, 2023 and its Form 10-Q for fiscal quarter ended March 31, 2024, which were filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

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

# #

Bank of Hawai‘i Corporation and Subsidiaries
Financial Highlights Table 1
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
(dollars in thousands, except per share amounts) 2024 2024 2023 2024 2023
For the Period:
Operating Results
Net Interest Income $ 114,846 $ 113,938 $ 124,348 $ 228,784 $ 260,303
Provision for Credit Losses 2,400 2,000 2,500 4,400 4,500
Total Noninterest Income 42,087 42,285 43,255 84,372 83,992
Total Noninterest Expense 109,226 105,859 104,036 215,085 215,955
Pre-Provision Net Revenue 47,707 50,364 63,567 98,071 128,340
Net Income 34,083 36,391 46,061 70,474 92,903
Net Income Available to Common Shareholders 1 32,114 34,422 44,092 66,536 88,965
Basic Earnings Per Common Share 0.81 0.87 1.12 1.69 2.27
Diluted Earnings Per Common Share 0.81 0.87 1.12 1.68 2.26
Dividends Declared Per Common Share 0.70 0.70 0.70 1.40 1.40
Performance Ratios
Return on Average Assets 0.59 % 0.63 % 0.77 % 0.61 % 0.78 %
Return on Average Shareholders' Equity 9.53 10.34 13.55 9.93 13.90
Return on Average Common Equity 10.41 11.20 14.95 10.81 15.36
Efficiency Ratio 2 69.60 67.76 62.07 68.68 62.72
Net Interest Margin 3 2.15 2.11 2.22 2.13 2.34
Dividend Payout Ratio 4 86.42 80.46 62.50 82.84 61.67
Average Shareholders' Equity to Average Assets 6.22 6.08 5.65 6.15 5.62
Average Balances
Average Loans and Leases $ 13,831,797 $ 13,868,800 $ 13,876,754 $ 13,850,299 $ 13,797,559
Average Assets 23,145,107 23,281,566 24,114,443 23,213,336 23,990,649
Average Deposits 20,358,393 20,543,640 20,018,601 20,451,017 20,223,603
Average Shareholders' Equity 1,438,476 1,416,102 1,363,059 1,427,289 1,348,057
Per Share of Common Stock
Book Value $ 31.91 $ 31.62 $ 29.66 $ 31.91 $ 29.66
Tangible Book Value 31.12 30.83 28.87 31.12 28.87
Market Value
Closing 57.21 62.39 41.23 57.21 41.23
High 62.53 73.73 52.37 73.73 81.73
Low 54.50 58.38 30.83 54.50 30.83
June 30, March 31, December 31, June 30,
2024 2024 2023 2023
As of Period End:
Balance Sheet Totals
Loans and Leases $ 13,831,266 $ 13,853,837 $ 13,965,026 $ 13,914,889
Total Assets 23,300,768 23,420,860 23,733,296 24,947,936
Total Deposits 20,408,502 20,676,586 21,055,045 20,508,615
Other Debt 560,136 560,163 560,190 1,760,243
Total Shareholders' Equity 1,612,849 1,435,977 1,414,242 1,358,279
Asset Quality
Non-Performing Assets $ 15,179 $ 11,838 $ 11,747 $ 11,477
Allowance for Credit Losses - Loans and Leases 147,477 147,664 146,403 145,367
Allowance to Loans and Leases Outstanding 5 1.07 % 1.07 % 1.05 % 1.04 %
Capital Ratios 6
Common Equity Tier 1 Capital Ratio 11.59 % 11.50 % 11.33 % 11.00 %
Tier 1 Capital Ratio 13.99 12.74 12.56 12.21
Total Capital Ratio 15.05 13.81 13.60 13.24
Tier 1 Leverage Ratio 8.37 7.62 7.51 7.21
Total Shareholders' Equity to Total Assets 6.92 6.13 5.96 5.44
Tangible Common Equity to Tangible Assets 7 5.31 5.24 5.07 4.60
Tangible Common Equity to Risk-Weighted Assets 7 8.82 8.70 8.45 7.97
Non-Financial Data
Full-Time Equivalent Employees 1,910 1,891 1,899 2,025
Branches 50 50 51 51
ATMs 317 315 318 320
1  Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
3  Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
4  Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.
5  The numerator comprises the Allowance for Credit Losses - Loans and Leases.
6  Regulatory capital ratios as of June 30, 2024 are preliminary.
7  Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures.
Tangible common equity is defined by the Company as common shareholders' equity minus goodwill. See Table 2 "Reconciliation of Non-GAAP Financial Measures".
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- ---
Reconciliation of Non-GAAP Financial Measures Table 2
June 30, March 31, December 31, June 30,
(dollars in thousands) 2024 2024 2023 2023
Total Shareholders' Equity $ 1,612,849 $ 1,435,977 $ 1,414,242 $ 1,358,279
Less: Preferred Stock 345,000 180,000 180,000 180,000
Goodwill 31,517 31,517 31,517 31,517
Tangible Common Equity $ 1,236,332 $ 1,224,460 $ 1,202,725 $ 1,146,762
Total Assets $ 23,300,768 $ 23,420,860 $ 23,733,296 $ 24,947,936
Less: Goodwill 31,517 31,517 31,517 31,517
Tangible Assets $ 23,269,251 $ 23,389,343 $ 23,701,779 $ 24,916,419
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements 1 $ 14,021,387 $ 14,071,841 $ 14,226,780 $ 14,391,943
Total Shareholders' Equity to Total Assets 6.92 % 6.13 % 5.96 % 5.44 %
Tangible Common Equity to Tangible Assets (Non-GAAP) 5.31 % 5.24 % 5.07 % 4.60 %
Tier 1 Capital Ratio 1 13.99 % 12.74 % 12.56 % 12.21 %
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1 8.82 % 8.70 % 8.45 % 7.97 %
1  Regulatory capital ratios as of June 30, 2024 are preliminary.
Bank of Hawai‘i 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) 2024 2024 2023 2024 2023
Interest Income
Interest and Fees on Loans and Leases $ 163,208 $ 159,336 $ 144,541 $ 322,544 $ 281,042
Income on Investment Securities
Available-for-Sale 21,468 21,757 23,301 43,225 47,194
Held-to-Maturity 21,595 22,136 23,375 43,731 47,323
Deposits 25 30 18 55 45
Funds Sold 6,114 6,127 6,395 12,241 9,761
Other 1,120 970 2,121 2,090 2,718
Total Interest Income 213,530 210,356 199,751 423,886 388,083
Interest Expense
Deposits 91,542 89,056 53,779 180,598 91,573
Securities Sold Under Agreements to Repurchase 1,180 1,443 5,436 2,623 10,813
Funds Purchased 44 - 184 44 888
Short-Term Borrowings - - 2,510 - 5,713
Other Debt 5,918 5,919 13,494 11,837 18,793
Total Interest Expense 98,684 96,418 75,403 195,102 127,780
Net Interest Income 114,846 113,938 124,348 228,784 260,303
Provision for Credit Losses 2,400 2,000 2,500 4,400 4,500
Net Interest Income After Provision for Credit Losses 112,446 111,938 121,848 224,384 255,803
Noninterest Income
Trust and Asset Management 12,223 11,189 11,215 23,412 21,905
Mortgage Banking 1,028 951 1,176 1,979 2,180
Service Charges on Deposit Accounts 7,730 7,947 7,587 15,677 15,324
Fees, Exchange, and Other Service Charges 13,769 14,123 14,150 27,892 27,958
Investment Securities Losses, Net (1,601 ) (1,497 ) (1,310 ) (3,098 ) (3,102 )
Annuity and Insurance 1,583 1,046 1,038 2,629 2,309
Bank-Owned Life Insurance 3,396 3,356 2,876 6,752 5,718
Other 3,959 5,170 6,523 9,129 11,700
Total Noninterest Income 42,087 42,285 43,255 84,372 83,992
Noninterest Expense
Salaries and Benefits 57,033 58,215 56,175 115,248 121,263
Net Occupancy 10,559 10,456 9,991 21,015 19,863
Net Equipment 10,355 10,103 10,573 20,458 20,948
Data Processing 4,745 4,770 4,599 9,515 9,182
Professional Fees 4,929 4,677 4,651 9,606 8,534
FDIC Insurance 7,170 3,614 3,173 10,784 6,407
Other 14,435 14,024 14,874 28,459 29,758
Total Noninterest Expense 109,226 105,859 104,036 215,085 215,955
Income Before Provision for Income Taxes 45,307 48,364 61,067 93,671 123,840
Provision for Income Taxes 11,224 11,973 15,006 23,197 30,937
Net Income $ 34,083 $ 36,391 $ 46,061 $ 70,474 $ 92,903
Preferred Stock Dividends 1,969 1,969 1,969 3,938 3,938
Net Income Available to Common Shareholders $ 32,114 $ 34,422 $ 44,092 $ 66,536 $ 88,965
Basic Earnings Per Common Share $ 0.81 $ 0.87 $ 1.12 $ 1.69 $ 2.27
Diluted Earnings Per Common Share $ 0.81 $ 0.87 $ 1.12 $ 1.68 $ 2.26
Dividends Declared Per Common Share $ 0.70 $ 0.70 $ 0.70 $ 1.40 $ 1.40
Basic Weighted Average Common Shares 39,450,551 39,350,390 39,241,559 39,400,452 39,259,279
Diluted Weighted Average Common Shares 39,618,705 39,626,463 39,317,521 39,618,774 39,382,359
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- ---
Consolidated Statements of Comprehensive Income
(dollars in thousands)
Net Income 34,083 36,391 46,061 70,474 92,903
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities 9,052 12,938 (18,217 ) 21,990 11,059
Defined Benefit Plans 168 169 84 337 168
Other Comprehensive Income (Loss), Net of Tax: 9,220 13,107 (18,133 ) 22,327 11,227
Comprehensive Income 43,303 49,498 27,928 92,801 104,130

All values are in US Dollars.

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Condition Table 5
March 31, December 31, June 30,
(dollars in thousands) 2024 2023 2023
Assets
Interest-Bearing Deposits in Other Banks 3,259 $ 2,742 $ 2,761 $ 2,261
Funds Sold 624,089 673,489 690,112 1,273,109
Investment Securities
Available-for-Sale 2,298,092 2,352,051 2,408,933 2,666,723
Held-to-Maturity (Fair Value of 4,002,122; 4,104,622; 4,253,637; and 4,411,003) 4,812,954 4,913,457 4,997,335 5,202,698
Loans Held for Sale 2,664 2,182 3,124 3,359
Loans and Leases 13,831,266 13,853,837 13,965,026 13,914,889
Allowance for Credit Losses (147,477 ) (147,664 ) (146,403 ) (145,367 )
Net Loans and Leases 13,683,789 13,706,173 13,818,623 13,769,522
Total Earning Assets 21,424,847 21,650,094 21,920,888 22,917,672
Cash and Due from Banks 297,990 215,290 308,071 398,072
Premises and Equipment, Net 192,319 192,486 194,855 200,297
Operating Lease Right-of-Use Assets 84,757 85,501 86,110 89,286
Accrued Interest Receivable 67,554 67,887 66,525 64,720
Foreclosed Real Estate 2,672 2,672 2,098 1,040
Mortgage Servicing Rights 19,954 20,422 20,880 21,626
Goodwill 31,517 31,517 31,517 31,517
Bank-Owned Life Insurance 470,708 468,206 462,894 456,889
Other Assets 708,450 686,785 639,458 766,817
Total Assets 23,300,768 $ 23,420,860 $ 23,733,296 $ 24,947,936
Liabilities
Deposits
Noninterest-Bearing Demand 5,371,593 $ 5,542,930 $ 6,058,554 $ 5,968,344
Interest-Bearing Demand 3,928,295 3,823,224 3,749,717 4,119,166
Savings 8,207,902 8,231,245 8,189,472 7,756,426
Time 2,900,712 3,079,187 3,057,302 2,664,679
Total Deposits 20,408,502 20,676,586 21,055,045 20,508,615
Securities Sold Under Agreements to Repurchase 100,490 150,490 150,490 725,490
Other Debt 560,136 560,163 560,190 1,760,243
Operating Lease Liabilities 93,364 94,104 94,693 97,768
Retirement Benefits Payable 23,142 23,365 23,673 26,434
Accrued Interest Payable 37,278 37,081 41,023 26,737
Taxes Payable 5,289 7,378 7,636 132
Other Liabilities 459,718 435,716 386,304 444,238
Total Liabilities 21,687,919 21,984,883 22,319,054 23,589,657
Shareholders' Equity
Preferred Stock (Series A, .01 par value; authorized 180,000 shares issued and outstanding) 180,000 180,000 180,000 180,000
Preferred Stock (Series B, .01 par value; authorized 165,000 shares issued and outstanding) 165,000 - - -
Common Stock (.01 par value; authorized 500,000,000 shares;
issued / outstanding: June 30, 2024 - 58,765,907 / 39,729,941;
March 31, 2024 - 58,753,708 / 39,720,724; December 31, 2023 - 58,755,465 / 39,753,138;
and June 30, 2023 - 58,771,036 / 39,725,348) 585 584 583 583
Capital Surplus 639,841 640,663 636,422 628,202
Accumulated Other Comprehensive Loss (374,361 ) (383,581 ) (396,688 ) (423,431 )
Retained Earnings 2,119,140 2,114,729 2,107,569 2,091,289
Treasury Stock, at Cost (Shares: June 30, 2024 - 19,035,966; March 31, 2024 - 19,032,984;
December 31, 2023 - 19,002,327; and June 30, 2023 - 19,045,688) (1,117,356 ) (1,116,418 ) (1,113,644 ) (1,118,364 )
Total Shareholders' Equity 1,612,849 1,435,977 1,414,242 1,358,279
Total Liabilities and Shareholders' Equity 23,300,768 $ 23,420,860 $ 23,733,296 $ 24,947,936

All values are in US Dollars.

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity Table 6
Accumulated
Preferred Other
Preferred Shares Preferred Common Comprehensive
Series A Series B Series B Shares Common Capital Income Retained Treasury
(dollars in thousands) Stock Outstanding Stock Outstanding Stock Surplus (Loss) Earnings Stock Total
Balance as of December 31, 2023 180,000 $ 180,000 - $ - 39,753,138 $ 583 $ 636,422 $ (396,688 ) $ 2,107,569 $ (1,113,644 ) $ 1,414,242
Net Income - - - - - - - - 70,474 - 70,474
Other Comprehensive Income - - - - - - - 22,327 - - 22,327
Share-Based Compensation - - - - - - 7,505 - - - 7,505
Preferred Stock Issued, Net - - 165,000 165,000 - - (4,386 ) - - - 160,614
Common Stock Issued under Purchase and
Equity Compensation Plans - - - - 57,972 2 300 - 1,152 1,283 2,737
Common Stock Repurchased - - - - (81,169 ) - - - - (4,995 ) (4,995 )
Cash Dividends Declared Common Stock (1.40 per share) - - - - - - - - (56,117 ) - (56,117 )
Cash Dividends Declared Preferred Stock - - - - - - - - (3,938 ) - (3,938 )
Balance as of June 30, 2024 180,000 $ 180,000 165,000 $ 165,000 39,729,941 $ 585 $ 639,841 $ (374,361 ) $ 2,119,140 $ (1,117,356 ) $ 1,612,849
Balance as of December 31, 2022 180,000 $ 180,000 - $ - 39,835,750 $ 582 $ 620,578 $ (434,658 ) $ 2,055,912 $ (1,105,419 ) $ 1,316,995
Net Income - - - - - - - - 92,903 - 92,903
Other Comprehensive Income - - - - - - - 11,227 - - 11,227
Share-Based Compensation - - - - - - 7,672 - - - 7,672
Common Stock Issued under Purchase and
Equity Compensation Plans - - - - 94,765 1 (48 ) - 2,286 986 3,225
Common Stock Repurchased - - - - (205,167 ) - - - - (13,931 ) (13,931 )
Cash Dividends Declared Common Stock (1.40 per share) - - - - - - - - (55,874 ) - (55,874 )
Cash Dividends Declared Preferred Stock - - - - - - - - (3,938 ) - (3,938 )
Balance as of June 30, 2023 180,000 $ 180,000 - $ - 39,725,348 $ 583 $ 628,202 $ (423,431 ) $ 2,091,289 $ (1,118,364 ) $ 1,358,279

All values are in US Dollars.

Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1 Table 7a
Three Months Ended Three Months Ended
March 31, 2024 June 30, 2023
Income / Yield / Average Income / Yield / Average Income / Yield /
(dollars in millions) Expense 2 Rate Balance Expense 2 Rate Balance Expense 2 Rate
Earning Assets
Interest-Bearing Deposits in Other Banks 4.3 $ - 2.40 % $ 4.8 $ - 2.51 % $ 5.1 $ - 1.48 %
Funds Sold 455.8 6.1 5.31 455.9 6.1 5.32 500.1 6.4 5.06
Investment Securities
Available-for-Sale
Taxable 2,308.3 21.5 3.73 2,380.4 21.8 3.66 2,741.1 23.2 3.39
Non-Taxable 1.6 - 2.01 1.7 - 1.99 9.6 0.1 4.40
Held-to-Maturity
Taxable 4,837.2 21.4 1.77 4,926.8 21.9 1.79 5,231.3 23.2 1.78
Non-Taxable 34.6 0.2 2.10 34.7 0.2 2.10 35.2 0.2 2.10
Total Investment Securities 7,181.7 43.1 2.40 7,343.6 43.9 2.40 8,017.2 46.7 2.33
Loans Held for Sale 1.4 - 6.30 2.2 - 6.17 2.7 - 5.50
Loans and Leases 3
Commercial and Industrial 1,683.2 22.3 5.34 1,652.5 22.0 5.36 1,456.1 17.5 4.82
Paycheck Protection Program 9.5 0.1 2.24 10.8 - 1.40 14.5 - 1.30
Commercial Mortgage 3,723.6 51.6 5.57 3,716.6 50.5 5.46 3,814.9 49.3 5.19
Construction 321.3 6.3 7.85 307.9 5.6 7.27 246.8 3.5 5.70
Commercial Lease Financing 59.3 0.3 2.28 58.4 0.3 1.87 65.4 0.3 1.67
Residential Mortgage 4,595.2 45.6 3.97 4,649.9 45.0 3.87 4,704.0 41.2 3.50
Home Equity 2,231.7 21.8 3.92 2,250.1 21.1 3.78 2,272.3 19.0 3.35
Automobile 813.5 9.1 4.52 831.0 8.9 4.30 879.3 7.7 3.53
Other 4 394.5 6.8 6.95 391.6 6.5 6.66 423.5 6.4 6.04
Total Loans and Leases 13,831.8 163.9 4.76 13,868.8 159.9 4.63 13,876.8 144.9 4.19
Other 62.5 1.2 7.18 62.3 1.1 6.23 94.8 2.2 8.94
Total Earning Assets 21,537.5 214.3 3.99 21,737.6 211.0 3.89 22,496.7 200.2 3.56
Cash and Due from Banks 233.4 240.8 316.6
Other Assets 1,374.2 1,303.2 1,301.1
Total Assets 23,145.1 $ 23,281.6 $ 24,114.4
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand 3,788.5 8.8 0.94 $ 3,764.2 7.7 0.82 $ 4,037.4 7.5 0.75
Savings 8,259.2 52.0 2.53 8,131.3 49.4 2.44 7,667.6 26.6 1.39
Time 2,935.9 30.7 4.20 3,081.1 32.0 4.18 2,296.1 19.7 3.44
Total Interest-Bearing Deposits 14,983.6 91.5 2.46 14,976.6 89.1 2.39 14,001.1 53.8 1.54
Funds Purchased 3.2 - 5.37 - - - 14.6 0.2 5.00
Short-Term Borrowings - - 5.40 - - - 195.2 2.5 5.09
Securities Sold Under Agreements to Repurchase 121.9 1.2 3.83 150.5 1.4 3.79 725.5 5.4 2.96
Other Debt 560.2 6.0 4.25 560.1 5.9 4.25 1,255.8 13.5 4.31
Total Interest-Bearing Liabilities 15,668.9 98.7 2.53 15,687.2 96.4 2.47 16,192.2 75.4 1.87
Net Interest Income $ 115.6 $ 114.6 $ 124.8
Interest Rate Spread 1.46 % 1.42 % 1.69 %
Net Interest Margin 2.15 % 2.11 % 2.22 %
Noninterest-Bearing Demand Deposits 5,374.8 5,567.0 6,017.5
Other Liabilities 662.9 611.3 541.6
Shareholders' Equity 1,438.5 1,416.1 1,363.1
Total Liabilities and Shareholders' Equity 23,145.1 $ 23,281.6 $ 24,114.4
1  Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2  Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of 774,000, 690,000, and 471,000
for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively.
3  Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
4  Comprised of other consumer revolving credit, installment, and consumer lease financing.

All values are in US Dollars.

Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1 Table 7b
Six Months Ended
June 30, 2023
Income / Yield / Average Income / Yield /
(dollars in millions) Expense 2 Rate Balance Expense 2 Rate
Earning Assets
Interest-Bearing Deposits in Other Banks 4.5 $ 0.1 2.46 % $ 3.4 $ - 2.68 %
Funds Sold 455.9 12.2 5.31 398.6 9.8 4.87
Investment Securities
Available-for-Sale
Taxable 2,344.3 43.2 3.69 2,780.4 47.0 3.40
Non-Taxable 1.7 - 2.00 9.6 0.2 4.39
Held-to-Maturity
Taxable 4,882.0 43.4 1.78 5,283.6 47.0 1.78
Non-Taxable 34.7 0.4 2.10 35.2 0.4 2.10
Total Investment Securities 7,262.7 87.0 2.40 8,108.8 94.6 2.34
Loans Held for Sale 1.8 0.1 6.22 2.1 0.1 5.42
Loans and Leases 3
Commercial and Industrial 1,667.8 44.4 5.35 1,433.8 33.8 4.75
Paycheck Protection Program 10.2 0.1 1.79 15.7 0.1 1.86
Commercial Mortgage 3,720.1 102.1 5.52 3,776.2 94.5 5.04
Construction 314.6 11.8 7.57 263.5 7.4 5.68
Commercial Lease Financing 58.8 0.6 2.08 66.1 0.3 0.76
Residential Mortgage 4,622.6 90.7 3.92 4,685.2 81.0 3.46
Home Equity 2,240.9 42.9 3.85 2,255.9 37.2 3.33
Automobile 822.2 18.0 4.41 875.6 15.0 3.45
Other 4 393.1 13.3 6.80 425.6 12.5 5.94
Total Loans and Leases 13,850.3 323.9 4.70 13,797.6 281.8 4.11
Other 62.4 2.0 6.70 81.0 2.7 6.70
Total Earning Assets 21,637.6 425.3 3.94 22,391.5 389.0 3.49
Cash and Due from Banks 237.1 317.8
Other Assets 1,338.6 1,281.3
Total Assets 23,213.3 $ 23,990.6
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand 3,776.3 16.5 0.88 $ 4,126.2 12.7 0.62
Savings 8,195.3 101.4 2.49 7,837.3 47.2 1.21
Time 3,008.5 62.7 4.19 2,044.4 31.7 3.12
Total Interest-Bearing Deposits 14,980.1 180.6 2.42 14,007.9 91.6 1.32
Funds Purchased 1.6 - 5.37 37.4 0.9 4.72
Short-Term Borrowings - - 5.40 229.9 5.7 4.94
Securities Sold Under Agreements to Repurchase 136.2 2.6 3.81 725.5 10.8 2.96
Other Debt 560.2 11.9 4.25 879.8 18.7 4.31
Total Interest-Bearing Liabilities 15,678.1 195.1 2.50 15,880.5 127.7 1.62
Net Interest Income $ 230.2 $ 261.3
Interest Rate Spread 1.44 % 1.87 %
Net Interest Margin 2.13 % 2.34 %
Noninterest-Bearing Demand Deposits 5,470.9 6,215.7
Other Liabilities 637.0 546.3
Shareholders' Equity 1,427.3 1,348.1
Total Liabilities and Shareholders' Equity 23,213.3 $ 23,990.6
1  Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2  Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of 1,464,000 and 966,000
for the six months ended June 30, 2024 and June 30, 2023, respectively.
3  Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
4  Comprised of other consumer revolving credit, installment, and consumer lease financing.

All values are in US Dollars.

Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8a
Three Months Ended June 30, 2024
Compared to March 31, 2024
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Investment Securities
Available-for-Sale
Taxable $ (0.7 ) $ 0.4 $ (0.3 )
Held-to-Maturity
Taxable (0.4 ) (0.1 ) (0.5 )
Total Investment Securities (1.1 ) 0.3 (0.8 )
Loans and Leases
Commercial and Industrial 0.4 (0.1 ) 0.3
Paycheck Protection Program 0.1 - 0.1
Commercial Mortgage 0.1 1.0 1.1
Construction 0.2 0.5 0.7
Residential Mortgage (0.5 ) 1.1 0.6
Home Equity (0.2 ) 0.9 0.7
Automobile (0.2 ) 0.4 0.2
Other 2 - 0.3 0.3
Total Loans and Leases (0.1 ) 4.1 4.0
Other - 0.1 0.1
Total Change in Interest Income (1.2 ) 4.5 3.3
Change in Interest Expense:
Interest-Bearing Deposits
Demand - 1.1 1.1
Savings 0.8 1.8 2.6
Time (1.5 ) 0.2 (1.3 )
Total Interest-Bearing Deposits (0.7 ) 3.1 2.4
Securities Sold Under Agreements to Repurchase (0.2 ) - (0.2 )
Other Debt - 0.1 0.1
Total Change in Interest Expense (0.9 ) 3.2 2.3
Change in Net Interest Income $ (0.3 ) $ 1.3 $ 1.0
1  The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- ---
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8b
Three Months Ended June 30, 2024
Compared to June 30, 2023
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Funds Sold $ (0.6 ) $ 0.3 $ (0.3 )
Investment Securities
Available-for-Sale
Taxable (3.9 ) 2.2 (1.7 )
Non-Taxable (0.1 ) - (0.1 )
Held-to-Maturity
Taxable (1.7 ) (0.1 ) (1.8 )
Total Investment Securities (5.7 ) 2.1 (3.6 )
Loans and Leases
Commercial and Industrial 2.8 2.0 4.8
Paycheck Protection Program 0.1 - 0.1
Commercial Mortgage (1.2 ) 3.5 2.3
Construction 1.2 1.6 2.8
Commercial Lease Financing (0.1 ) 0.1 -
Residential Mortgage (1.0 ) 5.4 4.4
Home Equity (0.3 ) 3.1 2.8
Automobile (0.6 ) 2.0 1.4
Other 2 (0.5 ) 0.9 0.4
Total Loans and Leases 0.4 18.6 19.0
Other (0.6 ) (0.4 ) (1.0 )
Total Change in Interest Income (6.5 ) 20.6 14.1
Change in Interest Expense:
Interest-Bearing Deposits
Demand (0.5 ) 1.8 1.3
Savings 2.2 23.2 25.4
Time 6.1 4.9 11.0
Total Interest-Bearing Deposits 7.8 29.9 37.7
Funds Purchased (0.2 ) - (0.2 )
Short-Term Borrowings (2.6 ) 0.1 (2.5 )
Securities Sold Under Agreements to Repurchase (5.5 ) 1.3 (4.2 )
Other Debt (7.4 ) (0.1 ) (7.5 )
Total Change in Interest Expense (7.9 ) 31.2 23.3
Change in Net Interest Income $ 1.4 $ (10.6 ) $ (9.2 )
1  The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- ---
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8c
Six Months Ended June 30, 2024
Compared to June 30, 2023
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks $ 0.1 $ - $ 0.1
Funds Sold 1.4 1.0 2.4
Investment Securities
Available-for-Sale
Taxable (7.7 ) 3.9 (3.8 )
Non-Taxable (0.1 ) (0.1 ) (0.2 )
Held-to-Maturity
Taxable (3.6 ) - (3.6 )
Total Investment Securities (11.4 ) 3.8 (7.6 )
Loans and Leases
Commercial and Industrial 5.9 4.7 10.6
Commercial Mortgage (1.4 ) 9.0 7.6
Construction 1.6 2.8 4.4
Commercial Lease Financing - 0.3 0.3
Residential Mortgage (1.1 ) 10.8 9.7
Home Equity (0.2 ) 5.9 5.7
Automobile (1.0 ) 4.0 3.0
Other 2 (1.0 ) 1.8 0.8
Total Loans and Leases 2.8 39.3 42.1
Other (0.6 ) (0.1 ) (0.7 )
Total Change in Interest Income (7.7 ) 44.0 36.3
Change in Interest Expense:
Interest-Bearing Deposits
Demand (1.2 ) 5.0 3.8
Savings 2.3 51.9 54.2
Time 18.0 13.0 31.0
Total Interest-Bearing Deposits 19.1 69.9 89.0
Funds Purchased (1.0 ) 0.1 (0.9 )
Short-Term Borrowings (6.2 ) 0.5 (5.7 )
Securities Sold Under Agreements to Repurchase (10.7 ) 2.5 (8.2 )
Other Debt (6.6 ) (0.2 ) (6.8 )
Total Change in Interest Expense (5.4 ) 72.8 67.4
Change in Net Interest Income $ (2.3 ) $ (28.8 ) $ (31.1 )
1  The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- ---
Salaries and Benefits
(dollars in thousands)
Salaries 38,662 38,031 37,962 76,693 76,579
Incentive Compensation 3,109 3,090 2,984 6,199 6,981
Share-Based Compensation 3,296 3,799 4,096 7,095 7,255
Commission Expense 939 572 775 1,511 1,422
Retirement and Other Benefits 3,961 4,299 3,489 8,260 9,377
Payroll Taxes 3,070 4,730 3,310 7,800 9,158
Medical, Dental, and Life Insurance 3,211 3,212 3,568 6,423 7,432
Separation Expense 785 482 (9 ) 1,267 3,059
Total Salaries and Benefits 57,033 58,215 56,175 115,248 121,263

All values are in US Dollars.

Bank of Hawai‘i Corporation and Subsidiaries
Loan and Lease Portfolio Balances Table 10
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands) 2024 2024 2023 2023 2023
Commercial
Commercial and Industrial $ 1,691,441 $ 1,669,482 $ 1,652,699 $ 1,569,572 $ 1,502,676
Paycheck Protection Program 7,997 10,177 11,369 12,529 13,789
Commercial Mortgage 3,741,140 3,715,032 3,749,016 3,784,339 3,796,769
Construction 315,571 323,069 304,463 251,507 236,428
Lease Financing 59,388 57,817 59,939 61,522 62,779
Total Commercial 5,815,537 5,775,577 5,777,486 5,679,469 5,612,441
Consumer
Residential Mortgage 4,595,586 4,616,900 4,684,171 4,699,140 4,721,976
Home Equity 2,221,073 2,240,946 2,264,827 2,285,974 2,278,105
Automobile 806,240 825,854 837,830 856,113 878,767
Other 1 392,830 394,560 400,712 398,795 423,600
Total Consumer 8,015,729 8,078,260 8,187,540 8,240,022 8,302,448
Total Loans and Leases $ 13,831,266 $ 13,853,837 $ 13,965,026 $ 13,919,491 $ 13,914,889
1  Comprised of other revolving credit, installment, and lease financing.
Deposits
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands) 2024 2024 2023 2023 2023
Consumer $ 10,382,432 $ 10,429,004 $ 10,319,809 $ 10,036,261 $ 10,018,931
Commercial 7,995,618 8,323,330 8,601,224 8,564,536 8,019,971
Public and Other 2,030,452 1,924,252 2,134,012 2,201,512 2,469,713
Total Deposits $ 20,408,502 $ 20,676,586 $ 21,055,045 $ 20,802,309 $ 20,508,615
Average Deposits
Three Months Ended
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands) 2024 2024 2023 2023 2023
Consumer $ 10,379,724 $ 10,313,730 $ 10,092,727 $ 9,963,690 $ 9,977,239
Commercial 8,188,685 8,334,540 8,581,426 8,288,891 8,138,358
Public and Other 1,789,984 1,895,370 2,029,917 2,239,501 1,903,004
Total Deposits $ 20,358,393 $ 20,543,640 $ 20,704,070 $ 20,492,082 $ 20,018,601
Bank of Hawai‘i 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) 2024 2024 2023 2023 2023
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial $ 3,681 $ 13 $ 39 $ 43 $ 17
Commercial Mortgage 2,601 2,714 2,884 2,996 3,107
Total Commercial 6,282 2,727 2,923 3,039 3,124
Consumer
Residential Mortgage 2,998 3,199 2,935 3,706 3,504
Home Equity 3,227 3,240 3,791 3,734 3,809
Total Consumer 6,225 6,439 6,726 7,440 7,313
Total Non-Accrual Loans and Leases 12,507 9,166 9,649 10,479 10,437
Foreclosed Real Estate 2,672 2,672 2,098 1,040 1,040
Total Non-Performing Assets $ 15,179 $ 11,838 $ 11,747 $ 11,519 $ 11,477
Accruing Loans and Leases Past Due 90 Days or More
Consumer
Residential Mortgage $ 4,524 $ 3,378 $ 3,814 $ 3,519 $ 3,560
Home Equity 2,025 1,580 1,734 2,172 2,022
Automobile 568 517 399 393 577
Other 1 733 872 648 643 633
Total Consumer 7,850 6,347 6,595 6,727 6,792
Total Accruing Loans and Leases Past Due 90 Days or More $ 7,850 $ 6,347 $ 6,595 $ 6,727 $ 6,792
Total Loans and Leases $ 13,831,266 $ 13,853,837 $ 13,965,026 $ 13,919,491 $ 13,914,889
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases 0.09 % 0.07 % 0.07 % 0.08 % 0.08 %
Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate 0.11 % 0.09 % 0.08 % 0.08 % 0.08 %
Ratio of Non-Performing Assets to Total Assets 0.07 % 0.05 % 0.05 % 0.05 % 0.04 %
Ratio of Commercial Non-Performing Assets to Total Commercial Loans
and Leases and Commercial Foreclosed Real Estate 0.11 % 0.05 % 0.05 % 0.05 % 0.06 %
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate 0.11 % 0.11 % 0.11 % 0.10 % 0.10 %
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 0.17 % 0.13 % 0.13 % 0.13 % 0.13 %
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter $ 11,838 $ 11,747 $ 11,519 $ 11,477 $ 12,124
Additions 5,257 1,652 2,683 1,318 1,116
Reductions
Payments (844 ) (921 ) (2,018 ) (1,017 ) (226 )
Return to Accrual Status (1,018 ) (617 ) (437 ) (259 ) (1,527 )
Charge-offs / Write-downs (54 ) (23 ) - - (10 )
Total Reductions (1,916 ) (1,561 ) (2,455 ) (1,276 ) (1,763 )
Balance at End of Quarter $ 15,179 $ 11,838 $ 11,747 $ 11,519 $ 11,477
1  Comprised of other revolving credit, installment, and lease financing.
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Reserve for Credit Losses Table 12
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
(dollars in thousands) 2024 2024 2023 2024 2023
Balance at Beginning of Period $ 152,148 $ 152,429 $ 150,579 $ 152,429 $ 151,247
Loans and Leases Charged-Off
Commercial
Commercial and Industrial (875 ) (360 ) (203 ) (1,235 ) (464 )
Consumer
Residential Mortgage (48 ) - (6 ) (48 ) (6 )
Home Equity (202 ) (35 ) (5 ) (237 ) (55 )
Automobile (1,095 ) (1,048 ) (1,293 ) (2,143 ) (2,956 )
Other 1 (2,610 ) (2,312 ) (2,004 ) (4,922 ) (4,339 )
Total Loans and Leases Charged-Off (4,830 ) (3,755 ) (3,511 ) (8,585 ) (7,820 )
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial 263 116 103 379 153
Consumer
Residential Mortgage 63 42 58 105 119
Home Equity 113 184 578 297 762
Automobile 481 526 777 1,007 1,449
Other 1 517 606 618 1,123 1,292
Total Recoveries on Loans and Leases Previously Charged-Off 1,437 1,474 2,134 2,911 3,775
Net Charged-Off - Loans and Leases (3,393 ) (2,281 ) (1,377 ) (5,674 ) (4,045 )
Provision for Credit Losses:
Loans and Leases 3,206 3,542 3,167 6,748 4,973
Unfunded Commitments (806 ) (1,542 ) (667 ) (2,348 ) (473 )
Total Provision for Credit Losses 2,400 2,000 2,500 4,400 4,500
Balance at End of Period $ 151,155 $ 152,148 $ 151,702 $ 151,155 $ 151,702
Components
Allowance for Credit Losses - Loans and Leases $ 147,477 $ 147,664 $ 145,367 $ 147,477 $ 145,367
Reserve for Unfunded Commitments 3,678 4,484 6,335 3,678 6,335
Total Reserve for Credit Losses $ 151,155 $ 152,148 $ 151,702 $ 151,155 $ 151,702
Average Loans and Leases Outstanding $ 13,831,797 $ 13,868,800 $ 13,876,754 $ 13,850,299 $ 13,797,559
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized) 0.10 % 0.07 % 0.04 % 0.08 % 0.06 %
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 2 1.07 % 1.07 % 1.04 % 1.07 % 1.04 %
1  Comprised of other revolving credit, installment, and lease financing.
2  The numerator comprises the Allowance for Credit Losses - Loans and Leases.
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- ---
Business Segments Selected Financial Information Table 13a
Consumer Commercial Treasury Consolidated
(dollars in thousands) Banking Banking and Other Total
Three Months Ended June 30, 2024
Net Interest Income (Loss) $ 98,205 $ 50,885 $ (34,244 ) $ 114,846
Provision for Credit Losses 2,873 473 (946 ) 2,400
Net Interest Income (Loss) After Provision for Credit Losses 95,332 50,412 (33,298 ) 112,446
Noninterest Income 33,653 6,698 1,736 42,087
Noninterest Expense (87,011 ) (18,010 ) (4,205 ) (109,226 )
Income (Loss) Before Income Taxes 41,974 39,100 (35,767 ) 45,307
Provision for Income Taxes (10,685 ) (9,887 ) 9,348 (11,224 )
Net Income (Loss) $ 31,289 $ 29,213 $ (26,419 ) $ 34,083
Total Assets as of June 30, 2024 $ 8,357,830 $ 5,835,399 $ 9,107,539 $ 23,300,768
Three Months June 30, 2023 1
Net Interest Income (Loss) $ 98,114 $ 52,257 $ (26,023 ) $ 124,348
Provision for Credit Losses 1,392 (15 ) 1,123 2,500
Net Interest Income (Loss) After Provision for Credit Losses 96,722 52,272 (27,146 ) 121,848
Noninterest Income 31,944 7,939 3,372 43,255
Noninterest Expense (81,192 ) (19,302 ) (3,542 ) (104,036 )
Income (Loss) Before Income Taxes 47,474 40,909 (27,316 ) 61,067
Provision for Income Taxes (12,219 ) (10,336 ) 7,549 (15,006 )
Net Income (Loss) $ 35,255 $ 30,573 $ (19,767 ) $ 46,061
Total Assets as of June 30, 2023 $ 8,715,172 $ 5,714,929 $ 10,517,835 $ 24,947,936
1 Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- ---
Business Segments Selected Financial Information Table 13b
Consumer Commercial Treasury Consolidated
(dollars in thousands) Banking Banking and Other Total
Six Months Ended June 30, 2024
Net Interest Income (Loss) $ 195,199 $ 102,378 $ (68,793 ) $ 228,784
Provision for Credit Losses 5,160 467 (1,227 ) 4,400
Net Interest Income (Loss) After Provision for Credit Losses 190,039 101,911 (67,566 ) 224,384
Noninterest Income 65,635 13,492 5,245 84,372
Noninterest Expense (169,716 ) (36,653 ) (8,716 ) (215,085 )
Income (Loss) Before Income Taxes 85,958 78,750 (71,037 ) 93,671
Provision for Income Taxes (21,865 ) (19,895 ) 18,563 (23,197 )
Net Income (Loss) $ 64,093 $ 58,855 $ (52,474 ) $ 70,474
Total Assets as of June 30, 2024 $ 8,357,830 $ 5,835,399 $ 9,107,539 $ 23,300,768
Six Months Ended June 30, 2023 1
Net Interest Income (Loss) $ 194,697 $ 107,798 $ (42,192 ) $ 260,303
Provision for Credit Losses 4,061 (16 ) 455 4,500
Net Interest Income (Loss) After Provision for Credit Losses 190,636 107,814 (42,647 ) 255,803
Noninterest Income 63,098 16,588 4,306 83,992
Noninterest Expense (166,167 ) (39,591 ) (10,197 ) (215,955 )
Income (Loss) Before Income Taxes 87,567 84,811 (48,538 ) 123,840
Provision for Income Taxes (22,493 ) (20,822 ) 12,378 (30,937 )
Net Income (Loss) $ 65,074 $ 63,989 $ (36,160 ) $ 92,903
Total Assets as of June 30, 2023 $ 8,715,172 $ 5,714,929 $ 10,517,835 $ 24,947,936
1 Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Selected Quarterly Financial Data Table 14
Three Months Ended
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands, except per share amounts) 2024 2024 2023 2023 2023
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases $ 163,208 $ 159,336 $ 158,324 $ 151,245 $ 144,541
Income on Investment Securities
Available-for-Sale 21,468 21,757 22,782 23,552 23,301
Held-to-Maturity 21,595 22,136 22,589 22,838 23,375
Deposits 25 30 23 18 18
Funds Sold 6,114 6,127 5,705 12,828 6,395
Other 1,120 970 924 1,464 2,121
Total Interest Income 213,530 210,356 210,347 211,945 199,751
Interest Expense
Deposits 91,542 89,056 87,121 72,153 53,779
Securities Sold Under Agreements to Repurchase 1,180 1,443 1,459 4,034 5,436
Funds Purchased 44 - - - 184
Short-Term Borrowings - - - - 2,510
Other Debt 5,918 5,919 5,982 14,821 13,494
Total Interest Expense 98,684 96,418 94,562 91,008 75,403
Net Interest Income 114,846 113,938 115,785 120,937 124,348
Provision for Credit Losses 2,400 2,000 2,500 2,000 2,500
Net Interest Income After Provision for Credit Losses 112,446 111,938 113,285 118,937 121,848
Noninterest Income
Trust and Asset Management 12,223 11,189 11,144 10,548 11,215
Mortgage Banking 1,028 951 1,016 1,059 1,176
Service Charges on Deposit Accounts 7,730 7,947 7,949 7,843 7,587
Fees, Exchange, and Other Service Charges 13,769 14,123 13,774 13,824 14,150
Investment Securities Losses, Net (1,601 ) (1,497 ) (1,619 ) (6,734 ) (1,310 )
Annuity and Insurance 1,583 1,046 1,271 1,156 1,038
Bank-Owned Life Insurance 3,396 3,356 3,176 2,749 2,876
Other 3,959 5,170 5,572 19,889 6,523
Total Noninterest Income 42,087 42,285 42,283 50,334 43,255
Noninterest Expense
Salaries and Benefits 57,033 58,215 53,991 58,825 56,175
Net Occupancy 10,559 10,456 9,734 10,327 9,991
Net Equipment 10,355 10,103 9,826 9,477 10,573
Data Processing 4,745 4,770 4,948 4,706 4,599
Professional Fees 4,929 4,677 5,079 3,846 4,651
FDIC Insurance 7,170 3,614 18,545 3,361 3,173
Other 14,435 14,024 13,839 15,059 14,874
Total Noninterest Expense 109,226 105,859 115,962 105,601 104,036
Income Before Provision for Income Taxes 45,307 48,364 39,606 63,670 61,067
Provision for Income Taxes 11,224 11,973 9,210 15,767 15,006
Net Income $ 34,083 $ 36,391 $ 30,396 $ 47,903 $ 46,061
Preferred Stock Dividends 1,969 1,969 1,969 1,969 1,969
Net Income Available to Common Shareholders $ 32,114 $ 34,422 $ 28,427 $ 45,934 $ 44,092
Basic Earnings Per Common Share $ 0.81 $ 0.87 $ 0.72 $ 1.17 $ 1.12
Diluted Earnings Per Common Share $ 0.81 $ 0.87 $ 0.72 $ 1.17 $ 1.12
Balance Sheet Totals
Loans and Leases $ 13,831,266 $ 13,853,837 $ 13,965,026 $ 13,919,491 $ 13,914,889
Total Assets 23,300,768 23,420,860 23,733,296 23,549,785 24,947,936
Total Deposits 20,408,502 20,676,586 21,055,045 20,802,309 20,508,615
Total Shareholders' Equity 1,612,849 1,435,977 1,414,242 1,363,840 1,358,279
Performance Ratios
Return on Average Assets 0.59 % 0.63 % 0.51 % 0.78 % 0.77 %
Return on Average Shareholders' Equity 9.53 10.34 8.86 13.92 13.55
Return on Average Common Equity 10.41 11.20 9.55 15.38 14.95
Efficiency Ratio 1 69.60 67.76 73.36 61.66 62.07
Net Interest Margin 2 2.15 2.11 2.13 2.13 2.22
1  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
2  Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
Bank of Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Hawaii Economic Trends Table 15
Five Months Ended Year Ended
(dollars in millions; jobs in thousands) May 31, 2024 December 31, 2023 December 31, 2022
Hawaii Economic Trends
State General Fund Revenues 1 $ 4,192.4 (0.3 ) % $ 9,504.1 0.7 % $ 9,441.3 16.0 %
General Excise and Use Tax Revenue 1 1,912.5 (0.2 ) 4,474.1 4.9 4,263.4 18.3
Jobs 2 649.5 655.2 653.3
May 31, December 31,
2024 2023 2022
Unemployment, seasonally adjusted 2
Statewide 3.0 % 3.0 % 3.2 %
Honolulu County 2.9 2.6 3.1
Hawaii County 3.0 2.8 3.5
Maui County 3.6 6.2 3.5
Kauai County 2.9 2.5 3.1
June 30, December 31,
(1-year percentage change, except months of inventory) 2024 2023 2022 2021
Housing Trends (Single Family Oahu) 3
Median Home Price 3.3 % (5.0 ) % 11.6 % 19.3 %
Home Sales Volume (units) 6.7 % (26.3 ) % (23.2 ) % 17.9 %
Months of Inventory 3.0 2.8 2.1 0.8
Monthly Visitor Arrivals, Percentage Change
(in thousands, except percent change) Not Seasonally Adjusted from Previous Year
Tourism 4
May 31, 2024 757.8 (4.1 ) %
April 30, 2024 721.9 (10.5 )
March 31, 2024 843.5 (5.5 )
February 29, 2024 752.7 2.6
January 31, 2024 745.6 (3.8 )
December 31, 2023 845.6 (1.5 )
November 30, 2023 720.3 0.2
October 31, 2023 700.3 (3.7 )
September 30, 2023 643.1 (7.1 )
August 31, 2023 766.0 (7.7 )
July 31, 2023 929.4 1.2
June 30, 2023 886.0 5.3
May 31, 2023 790.5 2.1
April 30, 2023 806.2 (0.4 )
March 31, 2023 892.2 13.6
February 28, 2023 733.6 17.6
January 31, 2023 775.1 36.7
December 31, 2022 858.3 14.0
November 30, 2022 719.0 17.1
October 31, 2022 727.4 32.1
September 30, 2022 692.2 37.2
August 31, 2022 829.8 14.8
July 31, 2022 918.6 4.4
June 30, 2022 841.8 6.4
May 31, 2022 774.1 22.9
1  Source: Hawaii Department of Business, Economic Development & Tourism
2  Source: U.S. Bureau of Labor Statistics
3  Source: Honolulu Board of Realtors
4  Source: Hawaii Tourism Authority

Slide 1

Bank of Hawai‘i Corporation second quarter 2024 financial report July 22, 2024 Exhibit 99.2

Slide 2

this presentation, and other statements made by the Company in connection with it, may contain forward-looking statements concerning, among other things, forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. we have not committed to update forward-looking statements to reflect later events or circumstances disclosure 2 forward-looking statements

Slide 3

diversified, lower risk loan assets highlights broad & deep market penetration stable balance sheet performance earnings highlights strong credit average total deposits decreased 0.9% average total loans and leases decreased 0.3% successfully raised $165 million in connection with a preferred stock offering tier 1 capital ratio of 13.99% and total capital ratio of 15.05% $0.81 diluted earnings per common share industry-wide FDIC special assessment and other normalizing items impacted diluted earnings per common share by $0.07 1.81% average cost of total deposits net interest margin expanded by 4 basis points to 2.15% 10.41% return on average common equity 0.10% net charge-off rate 0.11% non-performing assets level 79% of loan portfolio real-estate secured with combined wtd avg LTV of 51% CRE portfolio comprises 27% of total loans, office 3%

Slide 4

highlights – balance sheet $ in billions

Slide 5

our deposits through our 127 year history in the islands, Bank of Hawai‘i has developed an exceptionally seasoned deposit base, built one relationship at a time, over many years, and in neighborhoods and communities we understand unique marketplace diversified long tenured ✔ ✔ ✔

Slide 6

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

Slide 7

long tenured deposit base note: as of June 30, 2024, numbers may not add up due to rounding (1): excludes public products and Bank of Hawai‘i accounts segment avg tenure (yrs) Commercial Core 27.8 The Private Bank 18.3 Small Business 17.0 Community 22.4 total 23.1 (1)

Slide 8

stable deposit balances $ in billions note: numbers may not add up due to rounding

Slide 9

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

Slide 10

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

Slide 11

deposit beta performance source: S&P Capital IQ; KBW Regional Banking Index (KRX)

Slide 12

unemployment experience & forecast source for Hawai‘i unemployment: University of Hawaii Economic Research Organization (UHERO), seasonally adjusted source for national unemployment: Bureau of Labor Statistics, seasonally adjusted 12

Slide 13

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

Slide 14

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

Slide 15

single family homes condominiums   1H-24 1H-23 Δ 1H-23 1H-24 1H-23 Δ 1H-23 median sales price (000s) $1,085 $1,050 3.3% $510 $500 2.0% closed sales 1,362 1,277 6.7% 2,234 2,372 -5.8% median days on market 20 25 5 days 29 22 7 days stable real estate prices Oahu market indicators – 1H 2024 source: Honolulu Board of Realtors, compiled from MLS data

Slide 16

credit performance

Slide 17

lending philosophy note: as of June 30, 2024 we lend in our core markets to long-standing relationships

Slide 18

steady organic loan growth $ in billions

Slide 19

consumer portfolio 58% of total loans asset type % total consumer % total loans WALTV wtd avg FICO residential mortgage 57% 33% 49% 805 home equity 28% 16% 46% 790 automobile 10% 6% n/a 734 other consumer 5% 3% n/a 759 total consumer 100% 58% 48% 791 $8.0B consumer note: $ in billions

Slide 20

commercial portfolio residential mortgage home equity 42% of total loans $5.8B commercial asset type % total comml % total loans WALTV commercial real estate 64% 27% 55% commercial & industrial 29% 12% n/a construction 6% 2% 55% leasing 1% 0.4% n/a total commercial 100% 42% 55% note: $ in billions; excludes $8MM in PPP loan balances including deferred costs and fees

Slide 21

vacancy inventory (sq ft)   1Q24 1Q23 10 yr avg 10 yr CAGR industrial 0.76% 0.81% 1.75% 0.28% office 13.56% 13.66% 12.46% - 1.08% retail 5.90% 5.10% 5.91% 0.74% multi-family 4.10% 4.40% 4.67% 0.70% Oahu market vacancies and inventory source: Colliers (industrial, office, retail) as of 1Q23 and 1Q24; CoStar (multi-family) as of 2Q23 and 2Q24 stable real estate market

Slide 22

commercial real estate (CRE) 27% of total loans wtd avg LTV 58% 56% 54% 53% 56% 51% % owner n/a 41% 4% n/a 20% 29% avg exposure ($millions) $3.0 $2.5 $4.2 $13.0 $1.8 $3.5

Slide 23

CRE scheduled maturities < 5% maturing in 2024

Slide 24

loan balances by LTV LTV > 80% - $31MM, 0.8% of CRE

Slide 25

credit quality * 74% of total criticized is secured with 56% wtd avg LTV

Slide 26

financial update

Slide 27

$ in millions NII and NIM positive repricing from cashflows and other: +$4.6 negative deposit mix shift and repricing: $(2.9) reduction in earning assets from deposits: $(1.1) non-recurring interest recovery: +$0.3 2.11% 2.15% note: numbers may not add up due to rounding

Slide 28

cashflows repricing note: numbers may not add up due to rounding, assumes money matured/run-off from investment portfolio to be reinvested into Fed Funds at 5.4% $ in millions

Slide 29

NII and NIM trends stabilizing NII and NIM $ in millions

Slide 30

avg total earning assets yield in basis points earning assets continue to reprice higher

Slide 31

noninterest income $ in millions steady core noninterest income note: numbers may not add up due to rounding normalizing items: -$1.5 sale of a low-income housing tax credit investment

Slide 32

noninterest expense $ in millions continued discipline in expense management note: numbers may not add up due to rounding normalizing items: -$2.2 seasonal payroll -$0.5 separation normalizing items: -$2.6 FDIC special assessment -$0.8 separation -$0.6 other expenses (not expected to recur in 2024)

Slide 33

financial summary $ in millions, except per share amounts 2Q 2024 1Q 2024 2Q 2023 ∆ 1Q 2024 ∆ 2Q 2023 net interest income $ 114.8 $ 113.9 $ 124.3 $ 0.9 $ (9.5) noninterest income 42.1   42.3   43.3   (0.2)   (1.2)   total revenue 156.9 156.2 167.6 0.7 (10.7) noninterest expense 109.2   105.9   104.0   3.4   5.2   operating income 47.7   50.4   63.6 (2.7) (15.9) credit provision 2.4 2.0 2.5 0.4 (0.1) income taxes 11.2 12.0 15.0 (0.7) (3.8) net income $ 34.1   $ 36.4   $ 46.1   $ (2.3)   $ (12.0)   net income available to common $ 32.1   $ 34.4   $ 44.1   $ (2.3)   $ (12.0)   diluted EPS $ 0.81   $ 0.87   $ 1.12   $ (0.06)   $ (0.31)   return on assets 0.59 % 0.63 % 0.77 % (0.04) % (0.18) % return on common equity 10.41 11.20 14.95 (0.79) (4.54) net interest margin 2.15 2.11 2.22 0.04 (0.07) end of period balances investment portfolio $ 7,111 $ 7,266 $ 7,869 (2.1) % (9.6) % loans and leases 13,831 13,854 13,915 (0.2) (0.6) total deposits 20,409 20,677 20,509 (1.3) (0.5) shareholders' equity 1,613 1,436 1,358 12.3 18.7 note: numbers may not add up due to rounding

Slide 34

capital note: 2Q24 regulatory capital ratios are preliminary 13.6% strong risk-based capital 13.6% RWA / total assets

Slide 35

high quality and low cost deposit base in unique and competitively advantageous deposit market increase in NII and NIM exceptional credit quality strong liquidity strong risk-based capital takeaways

Slide 36

Q & A

Slide 37

appendix

Slide 38

insured/collateralized deposits note: as of June 30, 2024, numbers may not add up due to rounding

Slide 39

note: as of June 30, 2024, cash includes fed funds sold and cash and due from banks, and securities available includes unencumbered investment securities Bank of Hawai‘i carries substantial liquidity lines and equivalents for both day-to-day operational and liquidity backstop purposes readily available liquidity

Slide 40

Oahu market inventory source: Colliers (industrial, office, retail) as of 1Q24; CoStar (multi-family) as of 2Q24 CRE supply constraints 10-yr CAGR: 0.3% 10-yr CAGR: -1.1% 10-yr CAGR: 0.7% 10-yr CAGR: 0.7%

Slide 41

CRE office 3% of total loans 56% wtd avg LTV $1.7MM average exposure 24% CBD (Downtown Honolulu) - 58% wtd avg LTV - 46% with repayment guaranties 3% maturing prior to 2026 2.4% criticized highlights $376MM

Slide 42

CRE multi-family 7% of total loans 58% wtd avg LTV $3.0MM average exposure 99.2% LIHTC, affordable or market 18% maturing prior to 2026 2.0% criticized highlights $913MM

Report a Problem

Category
Description
Email (optional, for follow-up)