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

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.

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“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.

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.

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.

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 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.

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,

(dollars in thousands, except per share amounts)

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

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

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

1.05

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

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

2023

Total Shareholders' Equity

1,612,849

1,435,977

1,414,242

1,358,279

Less: Preferred Stock

345,000

180,000

Goodwill

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

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,

(dollars in thousands, except per share amounts)

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

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

184

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

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

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 Table 4

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

(dollars in thousands)

2024

2023

2024

2023

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

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

Bank of Hawai‘i Corporation and Subsidiaries Consolidated Statements of Condition Table 5

June 30,

March 31,

December 31,

June 30,

(dollars in thousands)

2024

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

2,098

1,040

Mortgage Servicing Rights

19,954

20,422

20,880

21,626

Goodwill

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

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

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

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

4,947,936

Bank of Hawai‘i Corporation and Subsidiaries Consolidated Statements of Shareholders' Equity Table 6 Accumulated Preferred Preferred Other Shares Preferred Shares Preferred Common Comprehensive Series A Series A Series B Series B Shares Common Capital Income Retained Treasury (dollars in thousands) Outstanding Stock Outstanding Stock Outstanding Stock Surplus (Loss) Earnings Stock Total Balance as of December 31, 2023

180,000

39,753,138

583

636,422

(396,688

)

2,107,569

(1,113,644

)

1,414,242

Net Income

70,474

Other Comprehensive Income

22,327

Share-Based Compensation

7,505

Preferred Stock Issued, Net

165,000

(4,386

)

160,614

Common Stock Issued under Purchase and Equity Compensation Plans

57,972

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

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

39,835,750

582

620,578

(434,658

)

2,055,912

(1,105,419

)

1,316,995

Net Income

92,903

Other Comprehensive Income

11,227

Share-Based Compensation

7,672

Common Stock Issued under Purchase and Equity Compensation Plans

94,765

(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

39,725,348

583

628,202

(423,431

)

2,091,289

(1,118,364

)

1,358,279

Bank of Hawai‘i Corporation and Subsidiaries Average Balances and Interest Rates - Taxable-Equivalent Basis 1 Table 7a Three Months Ended Three Months Ended Three Months Ended June 30, 2024 March 31, 2024 June 30, 2023 Average Income / Yield / Average Income / Yield / Average Income / Yield / (dollars in millions) Balance 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. Bank of Hawai‘i Corporation and Subsidiaries Average Balances and Interest Rates - Taxable-Equivalent Basis 1 Table 7b Six Months Ended Six Months Ended June 30, 2024 June 30, 2023 Average Income / Yield / Average Income / Yield / (dollars in millions) Balance 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. 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

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

Total Loans and Leases

(0.1

)

4.1

4.0

Other

0.1

Total Change in Interest Income

(1.2

)

4.5

3.3

Change in Interest Expense: Interest-Bearing Deposits Demand

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

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

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

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

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

)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

(dollars in thousands)

2024

2023

2024

2023

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

)

1,267

3,059

Total Salaries and Benefits

57,033

58,215

56,175

115,248

121,263

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

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

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

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

2023

Non-Performing Assets Non-Accrual Loans and Leases Commercial Commercial and Industrial

3,681

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

2,098

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

0.08

Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate

0.11

0.09

0.08

Ratio of Non-Performing Assets to Total Assets

0.07

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

0.06

Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Consumer Foreclosed Real Estate

0.11

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

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,

(dollars in thousands)

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

)

(48

)

Home Equity

(202

)

(35

)

(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

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

1.04

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 Ended 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

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

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

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

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

2.22

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

3.2

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20240722713291/en/

Investor/Analyst Inquiries Chang Park Email: Chang.Park@boh.com Phone: 808-694-8238 Media Inquiries Melissa Torres-Laing Email: Melissa.Torres-Laing@boh.com Phone: 808-694-8384 Mobile: 808-859-1703

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