Equibles

8-K

BANK OF HAWAII CORP (BOH)

8-K 2023-07-24 For: 2023-07-24
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Added on April 04, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report July 24, 2023
(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

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 24, 2023, Bank of Hawaii Corporation announced its results of operations for the quarter ended June 30, 2023. 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 24, 2023 Press Release: Bank of Hawaii Corporation Second Quarter 2023 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 2023 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 24, 2023 Bank of Hawaii Corporation
By: /s/ Patrick M. McGuirk
Patrick M. McGuirk
Senior Executive Vice President and Corporate Secretary

EX-99.1

Exhibit 99.1

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Bank of Hawai‘i Corporation Second Quarter 2023 Financial Results

• Diluted Earnings Per Common Share $1.12

• Net Income $46.1 Million

• Total Deposits Up 0.1% Linked Quarter

• Immediately Available Liquidity Increased to $8.5 Billion

• Board of Directors Declares Dividend of $0.70 Per Common Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (July 24, 2023) -- Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $1.12 for the second quarter of 2023, compared with diluted earnings per common share of $1.14 in the previous quarter and $1.38 in the same quarter of 2022. Net income for the second quarter of 2023 was $46.1 million, down 1.7% from the previous quarter and down 19.0% from the same quarter of 2022. The return on average common equity for the second quarter of 2023 was 14.95% compared with 15.79% in the previous quarter and 18.19% in the same quarter of 2022.

“Bank of Hawai‘i delivered solid financial results in the second quarter of 2023,” said Peter Ho, Chairman, President, and CEO. “Our brand strength, built through 125 years of building lasting and long-standing relationships with the consumers, businesses and municipalities of Hawai‘i, helped us deliver yet another quarter of stable deposit performance. Total deposits were up modestly from a quarter ago. We also added additional liquidity to the balance sheet with cash and other immediately available borrowing lines growing to $8.5 billion at quarter end. Loans grew 0.7% with growth coming from both our consumer and commercial businesses. Credit quality remained pristine with non-performing assets of 0.08% at quarter end and net charge offs of 0.04% in the quarter. CRE loans and office CRE loans were 27.3% and 2.7% of total loans at quarter end with both categories having weighted average LTVs of 56%. Scheduled maturities for CRE loans and office CRE loans total 10% and 3% respectively through 2024. Finally, our capital position improved in the quarter, as measured by CET 1, Tier 1 Capital, Total Capital and Tier 1 Leverage.”

Financial Highlights

Net interest income for the second quarter of 2023 was $124.3 million, a decrease of 8.5% from the previous quarter and a decrease of 6.4% from the same quarter of 2022. The decrease in net interest income in the second quarter of 2023 was primarily due to higher funding costs, partially offset by higher earning asset yields.

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Bank of Hawai‘i Corporation Second Quarter 2023 Financial Results Page 2

Net interest margin was 2.22% in the second quarter of 2023, a decrease of 25 basis points from the previous quarter and from the same quarter of 2022. The decrease in net interest margin was due to higher funding costs and increased liquidity, partially offset by higher earning asset yields.

The average yield on loans and leases was 4.19% in the second quarter of 2023, up 16 basis points from the prior quarter and up 98 basis points from the same quarter of 2022. The average yield on total earning assets was 3.56% in the second quarter of 2023, up 14 basis points from the prior quarter and up 96 basis points from the same quarter of 2022. The average cost of interest-bearing deposits was 1.54% in the second quarter of 2023, up 45 basis points from the prior quarter and up 143 basis points from the same quarter of 2022. The average cost of total deposits, including noninterest-bearing deposits, was 1.08%, up 33 basis points from the prior quarter and up 101 basis points from the same quarter of 2022. The changes in yields and rates over the linked quarter and year over year period reflected the higher rate environment, including higher benchmark interest rates.

Noninterest income was $43.3 million in the second quarter of 2023, an increase of 6.2% from the previous quarter and an increase of 2.6% from the same period in 2022. Noninterest income in the second quarter of 2023 included $1.5 million from the sale of a low-income housing tax credit investment, while noninterest income in the first quarter of 2023 included a negative adjustment of $0.6 million related to a change in the Visa Class B conversion ratio. Adjusted noninterest income in the second quarter of 2023 was $41.7 million, up 1.0% from adjusted noninterest income in the prior quarter and down 1.0% from the same period in 2022.

Noninterest expense was $104.0 million in the second quarter of 2023, a decrease of 7.0% from the previous quarter and an increase of 1.1% from the same quarter of 2022. Noninterest expense in the first quarter of 2023 included seasonal payroll expenses of approximately $4.0 million and separation expenses of $3.1 million. Adjusted for these items in the prior quarter, noninterest expense decreased by 0.8% quarter over quarter.

The effective tax rate for the second quarter of 2023 was 24.57% compared with 25.38% in the previous quarter and 23.80% during the same quarter of 2022. The decrease in the effective tax rate on a linked quarter basis was mainly due to an unfavorable discrete tax item in the first quarter and an increase in benefits from tax credit investments in the current quarter. The year over year increase was primarily due to lower benefits from tax credit investments and benefits from leveraged leases that have since been terminated which were included in the effective tax rate for the second quarter of 2022.

Asset Quality

The Company’s overall asset quality remained strong during the second quarter of 2023. Provision for credit losses for the second quarter of 2023 was $2.5 million compared with $2.0 million in the previous quarter and a net benefit of $2.5 million in the same quarter of 2022.

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Bank of Hawai‘i Corporation Second Quarter 2023 Financial Results Page 3

Total non-performing assets were $11.5 million at June 30, 2023, down $0.6 million from March 31, 2023 and down $4.0 million from June 30, 2022. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.08% at the end of the quarter, a decrease of 1 basis point from the end of the prior quarter and a decrease of 4 basis points from the same quarter of 2022.

Net loan and lease charge-offs during the second quarter of 2023 were $1.4 million or 4 basis points annualized of total average loans and leases outstanding. Net loan and lease charge-offs for the second quarter of 2023 were comprised of charge-offs of $3.5 million partially offset by recoveries of $2.1 million. Compared to the prior quarter, net loan and lease charge-offs decreased by $1.3 million or 4 basis points annualized on total average loans and leases outstanding. Compared to the same quarter of 2022, net loan and lease charge-offs increased by $0.7 million or 2 basis points annualized on total average loans and leases outstanding.

The allowance for credit losses on loans and leases was $145.4 million at June 30, 2023, an increase of $1.8 million from March 31, 2023 and a decrease of $3.1 million from June 30, 2022. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.04% at the end of the quarter, flat from the end of the prior quarter and down 10 basis points from the end of the same quarter of 2022.

Balance Sheet

Total assets were $24.9 billion at June 30, 2023, an increase of 4.2% from March 31, 2023 and an increase of 7.4% from June 30, 2022, primarily due to growth in our earning assets.

Total funds sold and cash and due from banks was $1.7 billion at June 30, 2023, an increase of $1.1 billion from March 31, 2023 and $0.8 billion from June 30, 2022 and represented 6.7% of total assets. The growth was due to an increase in short-duration term funding of $1.3 billion that enhanced on balance sheet liquidity and provides a hedge against rising short-term rates.

The investment securities portfolio was $7.9 billion at June 30, 2023, a decrease of 3.2% from March 31, 2023 and a decrease of 4.9% from June 30, 2022. These decreases were due to 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 $13.9 billion at June 30, 2023, an increase of 0.7% from March 31, 2023 and an increase of 7.4% from June 30, 2022. Total commercial loans were $5.6 billion at June 30, 2023, an increase of 0.8% from the prior quarter and an increase of 8.9% from the same quarter of 2022. The increase from the same period in 2022 was primarily due to an increase in our commercial mortgage and commercial and industrial portfolios. Total consumer loans were $8.3 billion as of June 30, 2023, an increase of 0.5% from the prior quarter and 6.5% from the same period in 2022, primarily driven by increases in our residential mortgage and home equity portfolios.

Total deposits were $20.5 billion at June 30, 2023, an increase of 0.1% from March 31, 2023 and a decrease of 2.5% from June 30, 2022. Noninterest-bearing deposits made up 29% of total deposit balances as of June 30, 2023, down from 31% as of March 31, 2023 and 35% as of June 30, 2022. Average deposits were $20.0 billion for the second quarter of 2023, down 2.0% from $20.4 billion in the prior quarter, and down 2.7% from the second quarter of 2022. As of June 30, 2023 insured and collateralized deposits represent 61% of total deposit balances, up from 58% as of March 31, 2023 and 57% as of June 30, 2022.

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Bank of Hawai‘i Corporation Second Quarter 2023 Financial Results Page 4

Capital and Dividends

The Company’s capital levels remain well above regulatory well-capitalized minimums.

The Tier 1 Capital Ratio was 12.21% at June 30, 2023 compared with 12.10% at March 31, 2023 and 13.01% at June 30, 2022. The Tier 1 Leverage Ratio was 7.21% at June 30, 2023 compared with 7.19% at March 31, 2023 and 7.29% at June 30, 2022. The increase from the prior quarter was due to an increase in Tier 1 capital as a result of retained earnings growth partially offset by an increase in risk-weighted and average total assets, as a result of loan growth and increased liquidity over the period. The decrease from the same period in 2022 in the Tier 1 Capital Ratio was due to an increase in risk-weighted assets, and the decline in the Tier 1 Leverage Ratio was due to an increase in average total assets, both as a result of increased liquidity and loan growth over the period.

No shares of common stock were repurchased under the share repurchase program in the second quarter of 2023. Total remaining buyback authority under the share repurchase program was $126.0 million at June 30, 2023.

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 15, 2023 to shareholders of record at the close of business on August 31, 2023.

On July 7, 2023, the Board of Directors declared the quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, on its preferred stock. The depositary shares representing the Series A Preferred Stock are traded on the NYSE under the symbol “BOH.PRA.” The dividend will be payable on August 1, 2023 to shareholders of record of the preferred stock as of the close of business on July 17, 2023.

Conference Call Information

The Company will review its second quarter financial results today at 8:00 a.m. Hawaii 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/BIa86de171556d47818c0a5a7106c5f8bd. A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawaii Time on Monday, July 24, 2023. The replay will be accessible via the same link. In addition, the replay will be available on the Company's website, www.boh.com.

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Bank of Hawai‘i Corporation Second Quarter 2023 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, 2022 and its Form 10-Q for the fiscal quarter ended March 31, 2023, 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 Hawaii 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 web site, www.boh.com. Bank of Hawai‘i Corporation is a trade name of Bank of Hawaii Corporation

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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) 2023 2023 2022 2023 2022
For the Period:
Operating Results
Net Interest Income $ 124,348 $ 135,955 $ 132,902 $ 260,303 $ 258,165
Provision for Credit Losses 2,500 2,000 (2,500 ) 4,500 (8,000 )
Total Noninterest Income 43,255 40,737 42,158 83,992 85,709
Total Noninterest Expense 104,036 111,919 102,939 215,955 206,813
Pre-Provision Net Revenue 63,567 64,773 72,121 128,340 137,061
Net Income 46,061 46,842 56,862 92,903 111,696
Net Income Available to Common Shareholders 44,092 44,873 54,893 88,965 107,758
Basic Earnings Per Common Share 1.12 1.14 1.38 2.27 2.71
Diluted Earnings Per Common Share 1.12 1.14 1.38 2.26 2.70
Dividends Declared Per Common Share 0.70 0.70 0.70 1.40 1.40
Performance Ratios
Return on Average Assets 0.77 % 0.80 % 1.00 % 0.78 % 0.98 %
Return on Average Shareholders' Equity 13.55 14.25 16.40 13.90 15.23
Return on Average Common Equity 14.95 15.79 18.19 15.36 16.73
Efficiency Ratio 1 62.07 63.34 58.80 62.72 60.14
Net Interest Margin 2 2.22 2.47 2.47 2.34 2.41
Dividend Payout Ratio 3 62.50 61.40 50.72 61.67 51.66
Average Shareholders' Equity to Average Assets 5.65 5.59 6.08 5.62 6.47
Average Balances
Average Loans and Leases $ 13,876,754 $ 13,717,483 $ 12,700,825 $ 13,797,559 $ 12,496,747
Average Assets 24,114,443 23,865,478 22,891,262 23,990,649 22,869,496
Average Deposits 20,018,601 20,430,882 20,569,363 20,223,603 20,498,115
Average Shareholders' Equity 1,363,059 1,332,889 1,390,653 1,348,057 1,479,197
Per Share of Common Stock
Book Value $ 29.66 $ 29.62 $ 29.09 $ 29.66 $ 29.09
Tangible Book Value 28.87 28.83 28.30 28.87 28.30
Market Value
Closing 41.23 52.08 74.40 41.23 74.40
High 52.37 81.73 84.93 81.73 92.38
Low 30.83 34.71 70.97 30.83 70.97
June 30, March 31, December 31, June 30,
2023 2023 2022 2022
As of Period End:
Balance Sheet Totals
Loans and Leases $ 13,914,889 $ 13,824,522 $ 13,646,420 $ 12,951,573
Total Assets 24,947,936 23,931,977 23,606,877 23,232,699
Total Deposits 20,508,615 20,491,300 20,615,696 21,025,681
Other Debt 1,760,243 510,269 410,294 10,343
Total Shareholders' Equity 1,358,279 1,354,430 1,316,995 1,348,746
Asset Quality
Non-Performing Assets $ 11,477 $ 12,124 $ 12,647 $ 15,493
Allowance for Credit Losses - Loans and Leases 145,367 143,577 144,439 148,512
Allowance to Loans and Leases Outstanding 4 1.04 % 1.04 % 1.06 % 1.15 %
Capital Ratios 5
Common Equity Tier 1 Capital Ratio 11.00 % 10.88 % 10.92 % 11.66 %
Tier 1 Capital Ratio 12.21 12.10 12.15 13.01
Total Capital Ratio 13.24 13.13 13.17 14.14
Tier 1 Leverage Ratio 7.21 7.19 7.37 7.29
Total Shareholders' Equity to Total Assets 5.44 5.66 5.58 5.81
Tangible Common Equity to Tangible Assets 6 4.60 4.78 4.69 4.90
Tangible Common Equity to Risk-Weighted Assets 6 7.97 7.97 7.76 8.72
Non-Financial Data
Full-Time Equivalent Employees 2,025 2,025 2,076 2,114
Branches 51 51 51 54
ATMs 320 320 320 310
1  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
2  Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
3  Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.
4  The numerator comprises the Allowance for Credit Losses - Loans and Leases.
5  Regulatory capital ratios as of June 30, 2023 are preliminary.
6  Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures.
Tangible common equity is defined by the Company as common shareholders' equity minus goodwill.
See Table 2 "Reconciliation of Non-GAAP Financial Measures".
Bank of Hawai‘i Corporation and Subsidiaries
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Reconciliation of Non-GAAP Financial Measures Table 2
June 30, March 31, December 31, June 30,
(dollars in thousands) 2023 2023 2022 2022
Total Shareholders' Equity $ 1,358,279 $ 1,354,430 $ 1,316,995 $ 1,348,746
Less: Preferred Stock 180,000 180,000 180,000 180,000
Goodwill 31,517 31,517 31,517 31,517
Tangible Common Equity $ 1,146,762 $ 1,142,913 $ 1,105,478 $ 1,137,229
Total Assets $ 24,947,936 $ 23,931,977 $ 23,606,877 $ 23,232,699
Less: Goodwill 31,517 31,517 31,517 31,517
Tangible Assets $ 24,916,419 $ 23,900,460 $ 23,575,360 $ 23,201,182
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements 1 $ 14,391,943 $ 14,341,397 $ 14,238,798 $ 13,035,674
Total Shareholders' Equity to Total Assets 5.44 % 5.66 % 5.58 % 5.81 %
Tangible Common Equity to Tangible Assets (Non-GAAP) 4.60 % 4.78 % 4.69 % 4.90 %
Tier 1 Capital Ratio 1 12.21 % 12.10 % 12.15 % 13.01 %
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1 7.97 % 7.97 % 7.76 % 8.72 %
1  Regulatory capital ratios as of June 30, 2023 are preliminary.
Bank of Hawai‘i Corporation and Subsidiaries
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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) 2023 2023 2022 2023 2022
Interest Income
Interest and Fees on Loans and Leases $ 144,541 $ 136,501 $ 101,663 $ 281,042 $ 196,102
Income on Investment Securities
Available-for-Sale 23,301 23,893 17,984 47,194 35,084
Held-to-Maturity 23,375 23,948 18,838 47,323 37,539
Deposits 18 27 5 45 9
Funds Sold 6,395 3,366 719 9,761 846
Other 2,121 597 353 2,718 555
Total Interest Income 199,751 188,332 139,562 388,083 270,135
Interest Expense
Deposits 53,779 37,794 3,535 91,573 5,888
Securities Sold Under Agreements to Repurchase 5,436 5,377 2,794 10,813 5,566
Funds Purchased 184 704 57 888 59
Short-Term Borrowings 2,510 3,203 92 5,713 92
Other Debt 13,494 5,299 182 18,793 365
Total Interest Expense 75,403 52,377 6,660 127,780 11,970
Net Interest Income 124,348 135,955 132,902 260,303 258,165
Provision for Credit Losses 2,500 2,000 (2,500 ) 4,500 (8,000 )
Net Interest Income After Provision for Credit Losses 121,848 133,955 135,402 255,803 266,165
Noninterest Income
Trust and Asset Management 11,215 10,690 11,457 21,905 22,733
Mortgage Banking 1,176 1,004 1,247 2,180 3,987
Service Charges on Deposit Accounts 7,587 7,737 7,309 15,324 14,581
Fees, Exchange, and Other Service Charges 14,150 13,808 14,193 27,958 27,145
Investment Securities Losses, Net (1,310 ) (1,792 ) (1,295 ) (3,102 ) (2,840 )
Annuity and Insurance 1,038 1,271 870 2,309 1,661
Bank-Owned Life Insurance 2,876 2,842 2,658 5,718 5,007
Other 6,523 5,177 5,719 11,700 13,435
Total Noninterest Income 43,255 40,737 42,158 83,992 85,709
Noninterest Expense
Salaries and Benefits 56,175 65,088 57,769 121,263 117,693
Net Occupancy 9,991 9,872 9,930 19,863 19,756
Net Equipment 10,573 10,375 9,543 20,948 18,696
Data Processing 4,599 4,583 4,607 9,182 9,167
Professional Fees 4,651 3,883 3,542 8,534 6,800
FDIC Insurance 3,173 3,234 1,590 6,407 3,092
Other 14,874 14,884 15,958 29,758 31,609
Total Noninterest Expense 104,036 111,919 102,939 215,955 206,813
Income Before Provision for Income Taxes 61,067 62,773 74,621 123,840 145,061
Provision for Income Taxes 15,006 15,931 17,759 30,937 33,365
Net Income $ 46,061 $ 46,842 $ 56,862 $ 92,903 $ 111,696
Preferred Stock Dividends 1,969 1,969 1,969 3,938 3,938
Net Income Available to Common Shareholders $ 44,092 $ 44,873 $ 54,893 $ 88,965 $ 107,758
Basic Earnings Per Common Share $ 1.12 $ 1.14 $ 1.38 $ 2.27 $ 2.71
Diluted Earnings Per Common Share $ 1.12 $ 1.14 $ 1.38 $ 2.26 $ 2.70
Dividends Declared Per Common Share $ 0.70 $ 0.70 $ 0.70 $ 1.40 $ 1.40
Basic Weighted Average Common Shares 39,241,559 39,276,833 39,693,593 39,259,279 39,722,985
Diluted Weighted Average Common Shares 39,317,521 39,465,889 39,842,608 39,382,359 39,896,700
Bank of Hawai‘i Corporation and Subsidiaries
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Consolidated Statements of Comprehensive Income (Loss) Table 4
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
(dollars in thousands) 2023 2023 2022 2023 2022
Net Income $ 46,061 $ 46,842 $ 56,862 $ 92,903 $ 111,696
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities (18,217 ) 29,276 (122,647 ) 11,059 (302,771 )
Defined Benefit Plans 84 84 352 168 705
Other Comprehensive Income (Loss) (18,133 ) 29,360 (122,295 ) 11,227 (302,066 )
Comprehensive Income (Loss) $ 27,928 $ 76,202 $ (65,433 ) $ 104,130 $ (190,370 )
Bank of Hawai‘i Corporation and Subsidiaries
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Consolidated Statements of Condition Table 5
March 31, December 31, June 30,
(dollars in thousands) 2023 2022 2022
Assets
Interest-Bearing Deposits in Other Banks 2,261 $ 2,554 $ 3,724 $ 2,264
Funds Sold 1,273,109 272,018 81,364 576,430
Investment Securities
Available-for-Sale 2,666,723 2,815,083 2,844,823 3,955,476
Held-to-Maturity (Fair Value of 4,411,003; 4,601,876; 4,615,393; and 3,823,739) 5,202,698 5,312,815 5,414,139 4,321,693
Loans Held for Sale 3,359 2,149 1,035 4,514
Loans and Leases 13,914,889 13,824,522 13,646,420 12,951,573
Allowance for Credit Losses (145,367 ) (143,577 ) (144,439 ) (148,512 )
Net Loans and Leases 13,769,522 13,680,945 13,501,981 12,803,061
Total Earning Assets 22,917,672 22,085,564 21,847,066 21,663,438
Cash and Due from Banks 398,072 337,413 316,679 260,672
Premises and Equipment, Net 200,297 203,131 206,777 202,063
Operating Lease Right-of-Use Assets 89,286 91,387 92,307 91,901
Accrued Interest Receivable 64,720 63,175 61,002 47,141
Foreclosed Real Estate 1,040 1,040 1,040 2,332
Mortgage Servicing Rights 21,626 22,102 22,619 23,540
Goodwill 31,517 31,517 31,517 31,517
Bank-Owned Life Insurance 456,889 455,602 453,882 448,925
Other Assets 766,817 641,046 573,988 461,170
Total Assets 24,947,936 $ 23,931,977 $ 23,606,877 $ 23,232,699
Liabilities
Deposits
Noninterest-Bearing Demand 5,968,344 $ 6,385,872 $ 6,714,982 $ 7,374,055
Interest-Bearing Demand 4,119,166 4,283,801 4,232,567 4,339,520
Savings 7,756,426 7,898,874 7,962,410 8,054,899
Time 2,664,679 1,922,753 1,705,737 1,257,207
Total Deposits 20,508,615 20,491,300 20,615,696 21,025,681
Short-Term Borrowings - 325,000 - -
Securities Sold Under Agreements to Repurchase 725,490 725,490 725,490 425,490
Other Debt 1,760,243 510,269 410,294 10,343
Operating Lease Liabilities 97,768 99,746 100,526 99,722
Retirement Benefits Payable 26,434 26,768 26,991 37,532
Accrued Interest Payable 26,737 13,061 9,698 2,545
Taxes Payable 132 11,039 7,104 10,607
Other Liabilities 444,238 374,874 394,083 272,033
Total Liabilities 23,589,657 22,577,547 22,289,882 21,883,953
Shareholders' Equity
Preferred Stock (.01 par value; authorized 180,000 shares;
issued / outstanding: June 30, 2023; March 31, 2023; December 31, 2022;
and June 30, 2022 - 180,000) 180,000 180,000 180,000 180,000
Common Stock (.01 par value; authorized 500,000,000 shares;
issued / outstanding: June 30, 2023 - 58,771,036 / 39,725,348;
March 31, 2023 - 58,722,929 / 39,646,506; December 31, 2022 - 58,733,625 / 39,835,750;
and June 30, 2022 - 58,727,909 / 40,182,659) 583 583 582 582
Capital Surplus 628,202 624,126 620,578 611,694
Accumulated Other Comprehensive Loss (423,431 ) (405,298 ) (434,658 ) (368,448 )
Retained Earnings 2,091,289 2,074,428 2,055,912 2,002,005
Treasury Stock, at Cost (Shares: June 30, 2023 - 19,045,688; March 31, 2023 - 19,076,423;
December 31, 2022 - 18,897,875; and June 30, 2022 - 18,545,250) (1,118,364 ) (1,119,409 ) (1,105,419 ) (1,077,087 )
Total Shareholders' Equity 1,358,279 1,354,430 1,316,995 1,348,746
Total Liabilities and Shareholders' Equity 24,947,936 $ 23,931,977 $ 23,606,877 $ 23,232,699

All values are in US Dollars.

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity Table 6
Accumulated
Other
Common Comprehensive
Preferred Shares Common Capital Income Retained Treasury
(dollars in thousands) Stock Outstanding Stock Surplus (Loss) Earnings Stock Total
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
Balance as of December 31, 2021 180,000 $ 180,000 40,253,193 $ 581 $ 602,508 $ (66,382 ) $ 1,950,375 $ (1,055,471 ) $ 1,611,611
Net Income - - - - - - 111,696 - 111,696
Other Comprehensive Loss - - - - - (302,066 ) - - (302,066 )
Share-Based Compensation - - - - 8,172 - - - 8,172
Common Stock Issued under Purchase and
Equity Compensation Plans - - 228,225 1 1,014 - 346 2,697 4,058
Common Stock Repurchased - - (298,759 ) - - - - (24,313 ) (24,313 )
Cash Dividends Declared Common Stock (1.40 per share) - - - - - - (56,474 ) - (56,474 )
Cash Dividends Declared Preferred Stock - - - - - - (3,938 ) - (3,938 )
Balance as of June 30, 2022 180,000 $ 180,000 40,182,659 $ 582 $ 611,694 $ (368,448 ) $ 2,002,005 $ (1,077,087 ) $ 1,348,746

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, 2023 June 30, 2022
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 5.1 $ - 1.48 % $ 1.7 $ - 6.25 % $ 3.5 $ - 0.59 %
Funds Sold 500.1 6.4 5.06 295.9 3.4 4.55 273.5 0.7 1.04
Investment Securities
Available-for-Sale
Taxable 2,741.1 23.2 3.39 2,820.3 23.8 3.40 4,123.1 18.0 1.74
Non-Taxable 9.6 0.1 4.40 9.6 0.1 4.38 2.9 - 1.99
Held-to-Maturity
Taxable 5,231.3 23.2 1.78 5,336.2 23.8 1.78 4,377.0 18.7 1.71
Non-Taxable 35.2 0.2 2.10 35.3 0.2 2.10 35.7 0.2 2.10
Total Investment Securities 8,017.2 46.7 2.33 8,201.4 47.9 2.34 8,538.7 36.9 1.73
Loans Held for Sale 2.7 - 5.50 1.5 - 5.30 6.3 0.1 4.06
Loans and Leases 3
Commercial and Industrial 1,456.1 17.5 4.82 1,411.4 16.2 4.67 1,330.0 9.9 2.99
Paycheck Protection Program 14.5 - 1.30 16.9 0.1 2.35 38.7 0.5 5.26
Commercial Mortgage 3,814.9 49.3 5.19 3,736.9 45.1 4.90 3,357.2 26.2 3.13
Construction 246.8 3.5 5.70 280.4 3.9 5.65 222.6 2.4 4.39
Commercial Lease Financing 65.4 0.3 1.67 66.9 - (0.14 ) 94.2 0.3 1.44
Residential Mortgage 4,704.0 41.2 3.50 4,666.0 39.9 3.42 4,445.7 36.4 3.26
Home Equity 2,272.3 19.0 3.35 2,239.4 18.2 3.30 2,032.9 14.4 2.85
Automobile 879.3 7.7 3.53 871.8 7.3 3.37 759.1 6.1 3.20
Other 4 423.5 6.4 6.04 427.8 6.2 5.83 420.4 5.6 5.38
Total Loans and Leases 13,876.8 144.9 4.19 13,717.5 136.9 4.03 12,700.8 101.8 3.21
Other 94.8 2.2 8.94 67.2 0.6 3.56 38.2 0.3 3.70
Total Earning Assets 22,496.7 200.2 3.56 22,285.2 188.8 3.42 21,561.0 139.8 2.60
Cash and Due from Banks 316.6 319.1 238.4
Other Assets 1,301.1 1,261.2 1,091.9
Total Assets 24,114.4 $ 23,865.5 $ 22,891.3
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand 4,037.4 7.5 0.75 $ 4,215.9 5.2 0.50 $ 4,442.2 0.7 0.06
Savings 7,667.6 26.6 1.39 8,009.0 20.6 1.05 7,692.8 1.9 0.10
Time 2,296.1 19.7 3.44 1,789.9 12.0 2.71 950.4 0.9 0.40
Total Interest-Bearing Deposits 14,001.1 53.8 1.54 14,014.8 37.8 1.09 13,085.4 3.5 0.11
Funds Purchased 14.6 0.2 5.00 60.4 0.7 4.66 25.3 - 0.89
Short-Term Borrowings 195.2 2.5 5.09 265.0 3.2 4.84 34.5 0.1 1.06
Securities Sold Under Agreements to Repurchase 725.5 5.4 2.96 725.5 5.4 2.96 447.7 2.8 2.47
Other Debt 1,255.8 13.5 4.31 499.6 5.3 4.30 10.4 0.3 7.05
Total Interest-Bearing Liabilities 16,192.2 75.4 1.87 15,565.3 52.4 1.36 13,603.3 6.7 0.20
Net Interest Income $ 124.8 $ 136.4 $ 133.1
Interest Rate Spread 1.69 % 2.06 % 2.40 %
Net Interest Margin 2.22 % 2.47 % 2.47 %
Noninterest-Bearing Demand Deposits 6,017.5 6,416.1 7,484.0
Other Liabilities 541.6 551.2 413.3
Shareholders' Equity 1,363.1 1,332.9 1,390.7
Total Liabilities and Shareholders' Equity 24,114.4 $ 23,865.5 $ 22,891.3
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 471,000, 495,000, and 221,000
for the three months ended June 30, 2023, March 31, 2023, and June 30, 2022, 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, 2022
Income / Yield / Average Income / Yield /
(dollars in millions) Expense 2 Rate Balance Expense 2 Rate
Earning Assets
Interest-Bearing Deposits in Other Banks 3.4 $ - 2.68 % $ 3.5 $ - 0.52 %
Funds Sold 398.6 9.8 4.87 256.1 0.8 0.66
Investment Securities
Available-for-Sale
Taxable 2,780.4 47.0 3.40 4,260.6 35.1 1.65
Non-Taxable 9.6 0.2 4.39 3.0 - 1.96
Held-to-Maturity
Taxable 5,283.6 47.0 1.78 4,471.7 37.2 1.67
Non-Taxable 35.2 0.4 2.10 35.8 0.4 2.10
Total Investment Securities 8,108.8 94.6 2.34 8,771.1 72.7 1.66
Loans Held for Sale 2.1 0.1 5.42 10.0 0.2 3.19
Loans and Leases 3
Commercial and Industrial 1,433.8 33.8 4.75 1,331.5 18.9 2.86
Paycheck Protection Program 15.7 0.1 1.86 63.7 2.3 7.39
Commercial Mortgage 3,776.2 94.5 5.04 3,258.5 48.0 2.97
Construction 263.5 7.4 5.68 225.1 4.5 4.03
Commercial Lease Financing 66.1 0.3 0.76 96.5 0.7 1.44
Residential Mortgage 4,685.2 81.0 3.46 4,394.8 71.2 3.24
Home Equity 2,255.9 37.2 3.33 1,966.3 27.7 2.84
Automobile 875.6 15.0 3.45 748.3 11.9 3.22
Other 4 425.6 12.5 5.94 412.1 11.1 5.42
Total Loans and Leases 13,797.6 281.8 4.11 12,496.8 196.3 3.16
Other 81.0 2.7 6.70 37.3 0.6 2.97
Total Earning Assets 22,391.5 389.0 3.49 21,574.8 270.6 2.52
Cash and Due from Banks 317.8 235.8
Other Assets 1,281.3 1,058.9
Total Assets 23,990.6 $ 22,869.5
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand 4,126.2 12.7 0.62 $ 4,548.2 1.2 0.05
Savings 7,837.3 47.2 1.21 7,617.1 2.9 0.08
Time 2,044.4 31.7 3.12 960.9 1.8 0.37
Total Interest-Bearing Deposits 14,007.9 91.6 1.32 13,126.2 5.9 0.09
Funds Purchased 37.4 0.9 4.72 16.2 0.1 0.72
Short-Term Borrowings 229.9 5.7 4.94 17.3 0.1 1.06
Securities Sold Under Agreements to Repurchase 725.5 10.8 2.96 449.1 5.6 2.47
Other Debt 879.8 18.7 4.31 10.4 0.3 7.05
Total Interest-Bearing Liabilities 15,880.5 127.7 1.62 13,619.2 12.0 0.18
Net Interest Income $ 261.3 $ 258.6
Interest Rate Spread 1.87 % 2.34 %
Net Interest Margin 2.34 % 2.41 %
Noninterest-Bearing Demand Deposits 6,215.7 7,371.9
Other Liabilities 546.3 399.2
Shareholders' Equity 1,348.1 1,479.2
Total Liabilities and Shareholders' Equity 23,990.6 $ 22,869.5
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 966,000 and 475,000
for the six months ended June 30, 2023 and June 30, 2022, 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, 2023
Compared to March 31, 2023
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Funds Sold $ 2.6 $ 0.4 $ 3.0
Investment Securities
Available-for-Sale
Taxable (0.6 ) - (0.6 )
Non-Taxable - - -
Held-to-Maturity
Taxable (0.5 ) (0.1 ) (0.6 )
Non-Taxable - - -
Total Investment Securities (1.1 ) (0.1 ) (1.2 )
Loans Held for Sale - - -
Loans and Leases
Commercial and Industrial 0.7 0.6 1.3
Paycheck Protection Program (0.1 ) - (0.1 )
Commercial Mortgage 1.1 3.1 4.2
Construction (0.4 ) - (0.4 )
Commercial Lease Financing - 0.3 0.3
Residential Mortgage 0.3 1.0 1.3
Home Equity 0.4 0.4 0.8
Automobile 0.1 0.3 0.4
Other 2 (0.1 ) 0.3 0.2
Total Loans and Leases 2.0 6.0 8.0
Other 0.4 1.2 1.6
Total Change in Interest Income 3.9 7.5 11.4
Change in Interest Expense:
Interest-Bearing Deposits
Demand (0.2 ) 2.5 2.3
Savings (0.9 ) 6.9 6.0
Time 3.9 3.8 7.7
Total Interest-Bearing Deposits 2.8 13.2 16.0
Funds Purchased (0.5 ) - (0.5 )
Short-Term Borrowings (0.9 ) 0.2 (0.7 )
Securities Sold Under Agreements to Repurchase - - -
Other Debt 8.2 - 8.2
Total Change in Interest Expense 9.6 13.4 23.0
Change in Net Interest Income $ (5.7 ) $ (5.9 ) $ (11.6 )
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, 2023
Compared to June 30, 2022
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Funds Sold $ 1.0 $ 4.7 $ 5.7
Investment Securities
Available-for-Sale
Taxable (7.6 ) 12.8 5.2
Non-Taxable 0.1 - 0.1
Held-to-Maturity
Taxable 3.7 0.8 4.5
Non-Taxable - - -
Total Investment Securities (3.8 ) 13.6 9.8
Loans Held for Sale (0.1 ) - (0.1 )
Loans and Leases
Commercial and Industrial 1.0 6.6 7.6
Paycheck Protection Program (0.2 ) (0.3 ) (0.5 )
Commercial Mortgage 4.0 19.1 23.1
Construction 0.3 0.8 1.1
Commercial Lease Financing (0.1 ) 0.1 -
Residential Mortgage 2.2 2.6 4.8
Home Equity 1.8 2.8 4.6
Automobile 1.0 0.6 1.6
Other 2 - 0.8 0.8
Total Loans and Leases 10.0 33.1 43.1
Other 1.0 0.9 1.9
Total Change in Interest Income 8.1 52.3 60.4
Change in Interest Expense:
Interest-Bearing Deposits
Demand (0.1 ) 6.9 6.8
Savings - 24.7 24.7
Time 2.9 15.9 18.8
Total Interest-Bearing Deposits 2.8 47.5 50.3
Funds Purchased - 0.2 0.2
Short-Term Borrowings 1.3 1.1 2.4
Securities Sold Under Agreements to Repurchase 2.0 0.6 2.6
Other Debt 13.4 (0.2 ) 13.2
Total Change in Interest Expense 19.5 49.2 68.7
Change in Net Interest Income $ (11.4 ) $ 3.1 $ (8.3 )
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 Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- ---
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8c
Six Months Ended June 30, 2023
Compared to June 30, 2022
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Funds Sold $ 0.8 $ 8.2 $ 9.0
Investment Securities
Available-for-Sale
Taxable (15.4 ) 27.3 11.9
Non-Taxable 0.1 0.1 0.2
Held-to-Maturity
Taxable 7.1 2.7 9.8
Non-Taxable - - -
Total Investment Securities (8.2 ) 30.1 21.9
Loans Held for Sale (0.2 ) 0.1 (0.1 )
Loans and Leases
Commercial and Industrial 1.6 13.3 14.9
Paycheck Protection Program (1.1 ) (1.1 ) (2.2 )
Commercial Mortgage 8.6 37.9 46.5
Construction 0.9 2.0 2.9
Commercial Lease Financing (0.3 ) (0.1 ) (0.4 )
Residential Mortgage 4.8 5.0 9.8
Home Equity 4.4 5.1 9.5
Automobile 2.2 0.9 3.1
Other 2 0.3 1.1 1.4
Total Loans and Leases 21.4 64.1 85.5
Other 1.0 1.1 2.1
Total Change in Interest Income 14.8 103.6 118.4
Change in Interest Expense:
Interest-Bearing Deposits
Demand (0.1 ) 11.6 11.5
Savings 0.1 44.2 44.3
Time 3.9 26.0 29.9
Total Interest-Bearing Deposits 3.9 81.8 85.7
Funds Purchased 0.2 0.6 0.8
Short-Term Borrowings 4.3 1.3 5.6
Securities Sold Under Agreements to Repurchase 3.9 1.3 5.2
Other Debt 18.6 (0.2 ) 18.4
Total Change in Interest Expense 30.9 84.8 115.7
Change in Net Interest Income $ (16.1 ) $ 18.8 $ 2.7
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 Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- ---
Salaries and Benefits Table 9
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
(dollars in thousands) 2023 2023 2022 2023 2022
Salaries $ 37,962 $ 38,617 $ 36,721 $ 76,579 $ 71,653
Incentive Compensation 2,984 3,997 6,073 6,981 12,184
Share-Based Compensation 4,096 3,159 3,962 7,255 7,761
Commission Expense 775 647 1,232 1,422 2,873
Retirement and Other Benefits 3,489 5,888 4,036 9,377 8,729
Payroll Taxes 3,310 5,848 3,034 9,158 7,978
Medical, Dental, and Life Insurance 3,568 3,864 2,591 7,432 5,825
Separation Expense (9 ) 3,068 120 3,059 690
Total Salaries and Benefits $ 56,175 $ 65,088 $ 57,769 $ 121,263 $ 117,693
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) 2023 2023 2022 2022 2022
Commercial
Commercial and Industrial $ 1,502,676 $ 1,425,916 $ 1,389,066 $ 1,368,966 $ 1,323,830
Paycheck Protection Program 13,789 15,175 19,579 22,955 31,964
Commercial Mortgage 3,796,769 3,826,283 3,725,542 3,591,943 3,464,126
Construction 236,428 232,903 260,825 236,498 246,177
Lease Financing 62,779 65,611 69,491 73,989 89,535
Total Commercial 5,612,441 5,565,888 5,464,503 5,294,351 5,155,632
Consumer
Residential Mortgage 4,721,976 4,691,298 4,653,072 4,585,723 4,486,571
Home Equity 2,278,105 2,260,001 2,225,950 2,185,484 2,101,612
Automobile 878,767 877,979 870,396 820,640 775,065
Other 1 423,600 429,356 432,499 435,408 432,693
Total Consumer 8,302,448 8,258,634 8,181,917 8,027,255 7,795,941
Total Loans and Leases $ 13,914,889 $ 13,824,522 $ 13,646,420 $ 13,321,606 $ 12,951,573
1  Comprised of other revolving credit, installment, and lease financing.
Deposits
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands) 2023 2023 2022 2022 2022
Consumer $ 10,018,931 $ 10,158,833 $ 10,304,335 $ 10,507,946 $ 10,554,121
Commercial 8,019,971 8,594,441 8,569,670 8,841,781 8,824,609
Public and Other 2,469,713 1,738,026 1,741,691 1,539,046 1,646,951
Total Deposits $ 20,508,615 $ 20,491,300 $ 20,615,696 $ 20,888,773 $ 21,025,681
Average Deposits
Three Months Ended
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands) 2023 2023 2022 2022 2022
Consumer $ 9,977,239 $ 10,178,988 $ 10,295,563 $ 10,485,895 $ 10,617,060
Commercial 8,138,358 8,611,960 8,588,198 9,002,432 8,874,988
Public and Other 1,903,004 1,639,934 1,457,566 1,375,354 1,077,315
Total Deposits $ 20,018,601 $ 20,430,882 $ 20,341,327 $ 20,863,681 $ 20,569,363
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) 2023 2023 2022 2022 2022
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial $ 17 $ 31 $ 37 $ 49 $ 85
Commercial Mortgage 3,107 3,216 3,309 3,396 3,462
Total Commercial 3,124 3,247 3,346 3,445 3,547
Consumer
Residential Mortgage 3,504 4,199 4,239 4,945 5,179
Home Equity 3,809 3,638 4,022 4,438 4,435
Total Consumer 7,313 7,837 8,261 9,383 9,614
Total Non-Accrual Loans and Leases 10,437 11,084 11,607 12,828 13,161
Foreclosed Real Estate 1,040 1,040 1,040 1,040 2,332
Total Non-Performing Assets $ 11,477 $ 12,124 $ 12,647 $ 13,868 $ 15,493
Accruing Loans and Leases Past Due 90 Days or More
Consumer
Residential Mortgage $ 3,560 $ 4,566 $ 2,429 $ 3,279 $ 2,638
Home Equity 2,022 1,723 1,673 1,061 2,029
Automobile 577 598 589 467 359
Other 1 633 632 683 513 508
Total Consumer 6,792 7,519 5,374 5,320 5,534
Total Accruing Loans and Leases Past Due 90 Days or More $ 6,792 $ 7,519 $ 5,374 $ 5,320 $ 5,534
Total Loans and Leases $ 13,914,889 $ 13,824,522 $ 13,646,420 $ 13,321,606 $ 12,951,573
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases 0.08 % 0.08 % 0.09 % 0.10 % 0.10 %
Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate 0.08 % 0.09 % 0.09 % 0.10 % 0.12 %
Ratio of Non-Performing Assets to Total Assets 0.04 % 0.05 % 0.05 % 0.06 % 0.06 %
Ratio of Commercial Non-Performing Assets to Total Commercial Loans
and Leases and Commercial Foreclosed Real Estate 0.06 % 0.06 % 0.06 % 0.07 % 0.07 %
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate 0.10 % 0.11 % 0.11 % 0.13 % 0.15 %
Ratio of Non-Performing Assets and Accruing Loans and Leases
Past Due 90 Days or More to Total Loans and Leases
and Foreclosed Real Estate 0.13 % 0.14 % 0.13 % 0.14 % 0.16 %
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter $ 12,124 $ 12,647 $ 13,868 $ 15,493 $ 19,979
Additions 1,116 552 704 489 2,293
Reductions
Payments (226 ) (778 ) (1,605 ) (706 ) (5,511 )
Return to Accrual Status (1,527 ) (297 ) (301 ) (116 ) (1,267 )
Sales of Foreclosed Real Estate - - - (1,292 ) -
Charge-offs / Write-downs (10 ) - (19 ) - (1 )
Total Reductions (1,763 ) (1,075 ) (1,925 ) (2,114 ) (6,779 )
Balance at End of Quarter $ 11,477 $ 12,124 $ 12,647 $ 13,868 $ 15,493
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) 2023 2023 2022 2023 2022
Balance at Beginning of Period $ 150,579 $ 151,247 $ 157,264 $ 151,247 $ 164,297
Loans and Leases Charged-Off
Commercial
Commercial and Industrial (203 ) (261 ) (233 ) (464 ) (582 )
Consumer
Residential Mortgage (6 ) - (80 ) (6 ) (80 )
Home Equity (5 ) (50 ) (22 ) (55 ) (90 )
Automobile (1,293 ) (1,663 ) (1,157 ) (2,956 ) (2,687 )
Other 1 (2,004 ) (2,335 ) (1,854 ) (4,339 ) (3,815 )
Total Loans and Leases Charged-Off (3,511 ) (4,309 ) (3,346 ) (7,820 ) (7,254 )
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial 103 50 51 153 420
Consumer
Residential Mortgage 58 61 920 119 974
Home Equity 578 184 416 762 931
Automobile 777 672 684 1,449 1,423
Other 1 618 674 644 1,292 1,389
Total Recoveries on Loans and Leases Previously Charged-Off 2,134 1,641 2,715 3,775 5,137
Net Charged-Off - Loans and Leases (1,377 ) (2,668 ) (631 ) (4,045 ) (2,117 )
Net Charged-Off - Accrued Interest Receivable - - - - (47 )
Provision for Credit Losses:
Loans and Leases 3,167 1,806 (2,885 ) 4,973 (7,192 )
Accrued Interest Receivable - - - - (367 )
Unfunded Commitments (667 ) 194 350 (473 ) (476 )
Total Provision for Credit Losses 2,500 2,000 (2,535 ) 4,500 (8,035 )
Balance at End of Period $ 151,702 $ 150,579 $ 154,098 $ 151,702 $ 154,098
Components
Allowance for Credit Losses - Loans and Leases $ 145,367 $ 143,577 $ 148,512 $ 145,367 $ 148,512
Reserve for Unfunded Commitments 6,335 7,002 5,586 6,335 5,586
Total Reserve for Credit Losses $ 151,702 $ 150,579 $ 154,098 $ 151,702 $ 154,098
Average Loans and Leases Outstanding $ 13,876,754 $ 13,717,483 $ 12,700,825 $ 13,797,559 $ 12,496,747
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized) 0.04 % 0.08 % 0.02 % 0.06 % 0.03 %
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 2 1.04 % 1.04 % 1.15 % 1.04 % 1.15 %
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, 2023
Net Interest Income (Loss) $ 99,814 $ 53,673 $ (29,139 ) $ 124,348
Provision for Credit Losses 1,392 (15 ) 1,123 2,500
Net Interest Income (Loss) After Provision for Credit Losses 98,422 53,688 (30,262 ) 121,848
Noninterest Income 31,944 7,939 3,372 43,255
Noninterest Expense (81,275 ) (19,302 ) (3,459 ) (104,036 )
Income (Loss) Before Income Taxes 49,091 42,325 (30,349 ) 61,067
Provision for Income Taxes (12,645 ) (10,710 ) 8,349 (15,006 )
Net Income (Loss) $ 36,446 $ 31,615 $ (22,000 ) $ 46,061
Total Assets as of June 30, 2023 $ 8,739,294 $ 5,714,929 $ 10,493,713 $ 24,947,936
Three Months Ended June 30, 2023 1
Net Interest Income $ 76,872 $ 49,791 $ 6,239 $ 132,902
Provision for Credit Losses 632 (1 ) (3,131 ) (2,500 )
Net Interest Income After Provision for Credit Losses 76,240 49,792 9,370 135,402
Noninterest Income 31,868 8,363 1,927 42,158
Noninterest Expense (82,856 ) (17,014 ) (3,069 ) (102,939 )
Income Before Income Taxes 25,252 41,141 8,228 74,621
Provision for Income Taxes (6,339 ) (10,252 ) (1,168 ) (17,759 )
Net Income $ 18,913 $ 30,889 $ 7,060 $ 56,862
Total Assets as of June 30, 2023 1 $ 8,205,352 $ 5,339,224 $ 9,688,123 $ 23,232,699
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, 2023
Net Interest Income (Loss) $ 197,822 $ 110,378 $ (47,897 ) $ 260,303
Provision for Credit Losses 4,061 (16 ) 455 4,500
Net Interest Income (Loss) After Provision for Credit Losses 193,761 110,394 (48,352 ) 255,803
Noninterest Income 63,098 16,588 4,306 83,992
Noninterest Expense (166,348 ) (39,591 ) (10,016 ) (215,955 )
Income (Loss) Before Income Taxes 90,511 87,391 (54,062 ) 123,840
Provision for Income Taxes (23,268 ) (21,503 ) 13,834 (30,937 )
Net Income (Loss) $ 67,243 $ 65,888 $ (40,228 ) $ 92,903
Total Assets as of June 30, 2023 $ 8,739,294 $ 5,714,929 $ 10,493,713 $ 24,947,936
Six Months Ended June 30, 2022 1
Net Interest Income $ 147,233 $ 96,140 $ 14,792 $ 258,165
Provision for Credit Losses 2,315 (198 ) (10,117 ) (8,000 )
Net Interest Income After Provision for Credit Losses 144,918 96,338 24,909 266,165
Noninterest Income 63,837 18,561 3,311 85,709
Noninterest Expense (164,666 ) (35,683 ) (6,464 ) (206,813 )
Income Before Income Taxes 44,089 79,216 21,756 145,061
Provision for Income Taxes (11,053 ) (19,449 ) (2,863 ) (33,365 )
Net Income $ 33,036 $ 59,767 $ 18,893 $ 111,696
Total Assets as of June 30, 2022 1 $ 8,205,352 $ 5,339,224 $ 9,688,123 $ 23,232,699
1 Certain prior period information has been reclassified to conform to current presentation.
Bank of Hawai‘i Corporation and Subsidiaries
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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) 2023 2023 2022 2022 2022
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases $ 144,541 $ 136,501 $ 128,683 $ 115,013 $ 101,663
Income on Investment Securities
Available-for-Sale 23,301 23,893 18,476 16,995 17,984
Held-to-Maturity 23,375 23,948 23,708 20,243 18,838
Deposits 18 27 13 10 5
Funds Sold 6,395 3,366 1,093 2,335 719
Other 2,121 597 340 322 353
Total Interest Income 199,751 188,332 172,313 154,918 139,562
Interest Expense
Deposits 53,779 37,794 23,494 10,296 3,535
Securities Sold Under Agreements to Repurchase 5,436 5,377 4,289 2,745 2,794
Funds Purchased 184 704 318 40 57
Short-Term Borrowings 2,510 3,203 1,978 - 92
Other Debt 13,494 5,299 1,496 182 182
Total Interest Expense 75,403 52,377 31,575 13,263 6,660
Net Interest Income 124,348 135,955 140,738 141,655 132,902
Provision for Credit Losses 2,500 2,000 200 - (2,500 )
Net Interest Income After Provision for Credit Losses 121,848 133,955 140,538 141,655 135,402
Noninterest Income
Trust and Asset Management 11,215 10,690 10,652 10,418 11,457
Mortgage Banking 1,176 1,004 991 1,002 1,247
Service Charges on Deposit Accounts 7,587 7,737 7,513 7,526 7,309
Fees, Exchange, and Other Service Charges 14,150 13,808 13,906 13,863 14,193
Investment Securities Losses, Net (1,310 ) (1,792 ) (1,124 ) (2,147 ) (1,295 )
Annuity and Insurance 1,038 1,271 1,087 1,034 870
Bank-Owned Life Insurance 2,876 2,842 2,475 2,486 2,658
Other 6,523 5,177 5,672 (3,522 ) 5,719
Total Noninterest Income 43,255 40,737 41,172 30,660 42,158
Noninterest Expense
Salaries and Benefits 56,175 65,088 57,639 59,938 57,769
Net Occupancy 9,991 9,872 9,499 10,186 9,930
Net Equipment 10,573 10,375 9,942 9,736 9,543
Data Processing 4,599 4,583 4,579 4,616 4,607
Professional Fees 4,651 3,883 3,958 3,799 3,542
FDIC Insurance 3,173 3,234 1,774 1,680 1,590
Other 14,874 14,884 15,312 15,794 15,958
Total Noninterest Expense 104,036 111,919 102,703 105,749 102,939
Income Before Provision for Income Taxes 61,067 62,773 79,007 66,566 74,621
Provision for Income Taxes 15,006 15,931 17,700 13,765 17,759
Net Income $ 46,061 $ 46,842 $ 61,307 $ 52,801 $ 56,862
Preferred Stock Dividends 1,969 1,969 1,969 1,969 1,969
Net Income Available to Common Shareholders $ 44,092 $ 44,873 $ 59,338 $ 50,832 $ 54,893
Basic Earnings Per Common Share $ 1.12 $ 1.14 $ 1.51 $ 1.28 $ 1.38
Diluted Earnings Per Common Share $ 1.12 $ 1.14 $ 1.50 $ 1.28 $ 1.38
Balance Sheet Totals
Loans and Leases $ 13,914,889 $ 13,824,522 $ 13,646,420 $ 13,321,606 $ 12,951,573
Total Assets 24,947,936 23,931,977 23,606,877 23,134,040 23,232,699
Total Deposits 20,508,615 20,491,300 20,615,696 20,888,773 21,025,681
Total Shareholders' Equity 1,358,279 1,354,430 1,316,995 1,282,384 1,348,746
Performance Ratios
Return on Average Assets 0.77 % 0.80 % 1.05 % 0.91 % 1.00 %
Return on Average Shareholders' Equity 13.55 14.25 18.91 15.31 16.40
Return on Average Common Equity 14.95 15.79 21.28 16.98 18.19
Efficiency Ratio 1 62.07 63.34 56.46 61.37 58.80
Net Interest Margin 2 2.22 2.47 2.60 2.60 2.47
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 Hawai‘i Corporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Hawaii Economic Trends Table 15
Five Months Ended Year Ended
(dollars in millions; jobs in thousands) May 31, 2023 December 31, 2022 December 31, 2021
Hawaii Economic Trends
State General Fund Revenues 1 $ 4,204.9 (3.6 ) % $ 9,441.3 16.0 % $ 8,137.9 26.9 %
General Excise and Use Tax Revenue 1 1,916.0 9.4 4,263.4 18.3 3,604.3 18.6
Jobs 2 657.4 654.5 642.6
June 30, December 31,
2023 2022 2021
Unemployment, seasonally adjusted 3
Statewide 3.0 % 3.7 % 3.2 %
Honolulu County 3.1 3.3 3.7
Hawaii County 3.0 4.7 1.8
Maui County 2.5 4.5 2.4
Kauai County 2.6 4.7 2.7
June 30, December 31,
(1-year percentage change, except months of inventory) 2023 2022 2021 2020
Housing Trends (Single Family Oahu) 4
Median Home Price (5.5 ) % 11.6 % 19.3 % 5.2 %
Home Sales Volume (units) (34.6 ) % (23.2 ) % 17.9 % 2.3 %
Months of Inventory 2.6 2.1 0.8 1.4
Monthly Visitor Arrivals, Percentage Change
(in thousands) Not Seasonally Adjusted from Previous Year
Tourism 5
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 858.1 14.0
November 30, 2022 725.5 18.2
October 31, 2022 726.1 31.8
September 30, 2022 691.8 37.1
August 31, 2022 829.7 14.8
July 31, 2022 919.2 4.5
June 30, 2022 841.8 6.4
May 31, 2022 774.1 22.9
April 30, 2022 809.6 67.3
March 31, 2022 785.7 78.7
February 28, 2022 623.7 165.1
January 31, 2022 567.2 229.8
December 31,2021 752.8 219.3
November 30, 2021 614.0 234.1
October 31, 2021 550.8 618.2
September 30, 2021 504.6 2,641.0
August 31, 2021 723.0 2,995.6
July 31, 2021 879.6 3,798.4
June 30, 2021 791.1 4,534.7
May 31, 2021 629.7 6,807.4
1  Source: Hawaii Department of Business, Economic Development & Tourism
2  Source: U.S. Bureau of Labor Statistics
3  Source: University of Hawaii Economic Research Organization (UHERO)
4  Source: Honolulu Board of Realtors
5  Source: Hawaii Tourism Authority

Slide 1

Bank of Hawai‘i Corporation second quarter 2023 financial report July 24, 2023 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 quality balance sheet performance earnings highlights low risk balance sheet construct total deposits increased 0.1% growth attributed to increase in core customer deposits loans and leases increased 0.7% $1.12 earnings per diluted share 1.08% total average cost of deposits $104.0 million noninterest expense 14.95% return on average common equity 0.04% net charge-off rate 0.08% non-performing assets level 79% of loan portfolio real-estate secured with combined wtd avg LTV of 55% commercial real estate (CRE) portfolio comprises 27% of total loans with wtd avg LTV of 56% $1.7 billion in cash & cash equivalents $8.5 billion in readily available liquidity readily available liquidity exceeds uninsured deposits strong liquidity

Slide 4

our deposits through our 125 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 tenured ✔ ✔ ✔

Slide 5

unique deposit market source: FDIC Annual Summary of Deposits as of June 30, 2022 unique deposit market with five local competitors holding 97% of the bank deposit market

Slide 6

q1 2023 change in deposit balances compares 3/29/23 vs. 12/28/22; small banks data derived from H.8 Assets and Liabilities of Commercial Banks in the United States, Table 9 - Assets and Liabilities of Small Domestically Charted Commercial Banks in the United States, not seasonally adjusted includes: First Hawaiian Bank, Bank of Hawai‘i, American Savings Bank, Central Pacific Bank, and Territorial Savings Bank (1) (2)

Slide 7

majority of deposits insured or collateralized note: as of June 30, 2023

Slide 8

diversified deposit base note: as of June 30, 2023

Slide 9

tenured deposit base note: as of June 30, 2023, numbers may not add up due to rounding

Slide 10

deposit balances $ in billions spot balance increased by 0.1% average balance decreased by 2.0%

Slide 11

cost of funds interest-bearing deposits source: S&P Capital IQ; KBW Regional Banking Index (KRX) as of 1/3/23, top quartile represents 25th percentile and bottom quartile represents 75th percentile, when sorted by lowest to highest

Slide 12

cost of funds total deposit costs source: S&P Capital IQ; KBW Regional Banking Index (KRX) as of 1/3/23, top quartile represents 25th percentile and bottom quartile represents 75th percentile, when sorted by lowest to highest

Slide 13

deposit beta performance source: S&P Capital IQ; KBW Regional Banking Index (KRX) as of 1/3/23, beta calculated as change in average total deposit rate divided by change in average Fed Funds rate, top quartile represents 25th percentile and bottom quartile represents 75th percentile, when sorted by lowest to highest

Slide 14

readily available liquidity note: as of June 30, 2023, FRB borrowing capacity includes Bank Term Funding Program margins Bank of Hawai‘i carries substantial liquidity lines and equivalents for both day-to-day operational purposes as well as for liquidity backstop purposes

Slide 15

credit performance

Slide 16

lending philosophy note: as of June 30, 2023 we lend in markets we know & to long-standing relationships we understand

Slide 17

de-risking the balance sheet core non-core consumer residential mortgage home equity auto other consumer residential mortgage – land, interest only home equity – purchased auto – Oregon, origination FICO < 680 personal flexline credit card commercial C&I commercial real estate construction leasing scored small business non-relationship SNC large ticket leasing

Slide 18

historical net charge-off rates lower net charge offs through different economic cycles KRX – represents historical average net charge-off rates for banks in the KBW Regional Banking index as of 1/3/23 (source: S&P Capital IQ) all banks – represents historical average net charge-off rates for all FDIC insured banks (source: FDIC)

Slide 19

loan portfolio 40% commercial 72% real estate secured wtd avg LTV 56% 56% w/ BOH ≥ 10 yrs avg bal $0.7MM CRE C&I residential mortgage home equity auto leasing other consumer construction 60% consumer 84% real estate secured wtd avg LTV 54% 57% w/ BOH ≥ 10 yrs avg bal $0.07MM 79% of portfolio secured with real estate with combined weighted average loan to value of 55% note: excludes $14MM in PPP loan balances including deferred costs and fees

Slide 20

commercial real estate (CRE) 27% of total loans $13.9B total loans asset type % total loans wtd avg LTV multi-family 6.5% 59% industrial 5.5% 56% retail 5.2% 55% lodging 4.1% 53% office 2.7% 56% specialty 2.9% 53% other 0.6% 48% total CRE 27.3% 56%

Slide 21

CRE scheduled maturities 10% maturing prior to 2025

Slide 22

CRE office 3% of total loans 56% wtd avg LTV $1.7MM average exposure 26% CBD (Downtown Honolulu) - 63% wtd avg LTV - 47% with repayment guaranties 3% maturing prior to 2025 highlights 56% wtd LTV

Slide 23

CRE tail risk $3.8B CRE LTV > 80% - 0.8% of CRE, 0.2% of total loans

Slide 24

construction 2% of total loans $13.9B total loans asset type % total loans wtd avg LTV housing – low income / affordable 0.8% 63% housing – other 0.1% 46% retail 0.4% 64% industrial 0.2% 67% lodging 0.2% 49% office 0.1% 71% specialty 0.01% 56% total construction 1.7% 62%

Slide 25

credit quality * 75% of total criticized in CRE with 57% wtd avg LTV

Slide 26

financial update

Slide 27

$ in millions NII and NIM = NIM NII and NIM challenges from inverted yield curve and higher short term rates deposit rates and betas remain well below peers $1.7 billion in cash & cash equivalents reduced NIM by approximately 4 bps

Slide 28

asset repricing note: numbers may not add up due to rounding, loans repricing includes $200.0 million of fixed rate loans swapped to floating rate loans, matured/run-off yield for loans includes only fixed-rate loans; matured/run-off yield for investment portfolio excludes security called in 2Q23 matured/run-off yield $7.7B $7.9B reinvestment opportunity

Slide 29

noninterest income $ in millions note: 1Q23 reported noninterest income included a negative $0.6 million adjustment related to a change in the Visa Class B conversion ratio, 2Q23 reported noninterest income includes $1.5 million related to the sale of a low-income housing tax credit investment stable core noninterest income from diverse sources

Slide 30

noninterest expense $ in millions disciplined expense management in challenging operating environment note: 1Q23 reported noninterest expense included seasonal payroll expenses of approximately $4.0 million and separation expenses of $3.1 million

Slide 31

financial summary $ in millions, except per share amounts note: numbers may not add up due to rounding 2Q 2023 1Q 2023 2Q 2022 ∆ 1Q 2023 ∆ 2Q 2022 net interest income $ 124.3 $ 136.0 $ 132.9 $ (11.6) $ (8.6) noninterest income 43.3   40.7   42.2   2.5   1.1   total revenue 167.6 176.7 175.1 (9.1) (7.5) noninterest expense 104.0   111.9   102.9   (7.9)   1.1   operating income 63.6   64.8   72.1 (1.2) (8.6) credit provision 2.5 2.0 (2.5) 0.5 5.0 income taxes 15.0 15.9 17.8 (0.9) (2.8) net income $ 46.1   $ 46.8   $ 56.9   $ (0.8)   $ (10.8)   net income available to common $ 44.1   $ 44.9   54.9   $ (0.8)   $ (10.8)   diluted EPS $ 1.12   $ 1.14   $ 1.38   $ (0.02)   $ (0.26)   return on assets 0.77 % 0.80 % 1.00 % (0.03) % (0.23) % return on common equity 14.95 15.79 18.19 (0.84) (3.24) net interest margin 2.22 2.47 2.47 (0.25) (0.25) efficiency ratio 62.07 63.34 58.80 (1.27) 3.27 end of period balances investment portfolio $ 7,869 $ 8,128 $ 8,277 (3.2) % (4.9) % loans and leases 13,915 13,825 12,952 0.7 7.4 total deposits 20,509 20,491 21,026 0.1 (2.5) shareholders' equity 1,358 1,354 1,349 0.3 0.7

Slide 32

capital note: 2Q23 regulatory capital ratios are preliminary 13.6%

Slide 33

unique and competitively advantageous deposit market high quality deposit base market leading cost of deposits high quality assets exceptional credit quality strong risk-based capital takeaways

Slide 34

Q & A

Slide 35

appendix

Slide 36

loan to deposit ratio source: S&P Capital IQ; KBW Regional Banking Index (KRX) as of 1/3/23, top quartile represents 25th percentile and bottom quartile represents 75th percentile, when sorted by lowest to highest

Slide 37

unemployment experience & forecast source for Hawaii unemployment: University of Hawaii Economic Research Organization (UHERO), seasonally adjusted source for national unemployment: Bureau of Labor Statistics, seasonally adjusted 37

Slide 38

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

Slide 39

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

Slide 40

single family homes condominiums   June 2023 June 2022 June 2019 Δ June 2022 Δ June 2019 June 2023 June 2022 June 2019 Δ June 2022 Δ June 2019 median sales price (000s) $1,050 $1,100 $800 -4.5% 31.3% $510 $534 $433 -4.5% 17.9% months of inventory 2.6 1.5 3.6 1.1 months -1.0 months 2.8 1.6 3.9 1.2 months -1.1 months closed sales 248 357 327 -30.5% -24.2% 470 626 473 -24.9% -0.6% median days on market 17 10 18 7 days 1 day 18 11 27 7 days 9 days stable real estate prices Oahu market indicators – June 2023 source: Honolulu Board of Realtors, compiled from MLS data

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