BOH Bank of Hawaii Corporation

 

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	January 22, 2024
(Date of earliest event reported)

 

BANK OF HAWAII CORPORATION

(Exact name of registrant as specified in its charter)

 

Delaware	1-6887	99-0148992
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

 

130 Merchant Street	Honolulu	Hawaii	96813
(Address of principal executive offices)	(City)	(State)	(Zip Code)

 

(888) 643-3888

(Registrant's telephone number, including area code)

Not Applicable

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

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

 

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

 

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. ☐

 

 

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Item 2.02. Results of Operations and Financial Condition.

On January 22, 2024, Bank of Hawaii Corporation announced its results of operations for the quarter ended December 31, 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	January 22, 2024 Press Release: Bank of Hawaii Corporation Fourth 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 Fourth Quarter 2023 Financial Report
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

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

 

 

 

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Exhibit 99.1

 

Bank of Hawai‘i Corporation Fourth Quarter 2023 Financial Results

FOR IMMEDIATE RELEASE

 

HONOLULU, HI (January 22, 2024) -- Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $4.14 for the full year of 2023 compared with diluted earnings per common share of $5.48 for the full year of 2022. An industry-wide FDIC Special Assessment resulted in a $14.7 million charge in the fourth quarter of 2023 which negatively impacted diluted earnings per common share by $0.29. Net income for the year was $171.2 million, down 24.2% from the previous year. The return on average common equity for the full year of 2023 was 13.89% compared with 17.83% in 2022.

“Bank of Hawai‘i managed through a challenging economic environment in 2023 and delivered strong financial results,” said Peter Ho, Chairman, President, and CEO. “Over the past year, we have demonstrated the resilience of our brand, deposit base and distinct business model. Total deposits were up 2.1% from the prior year and our credit quality remained excellent with non-performing assets of 0.08% at quarter end and net charge offs of 0.05% in the quarter. Our noninterest income held steady and we continued to demonstrate disciplined expense management. We focused on strengthening our balance sheet during the year and we are well positioned to deliver strong results in 2024.”

Diluted earnings per common share for the fourth quarter of 2023 was $0.72, compared with diluted earnings per common share of $1.17 in the previous quarter and $1.50 in the same quarter of 2022. Net income for the fourth quarter of 2023 was $30.4 million, down 36.5% from the previous quarter and down 50.4% from the same quarter of 2022. The return on average common equity for the fourth quarter of 2023 was 9.55% compared with 15.38% in the previous quarter and 21.28% in the same quarter of 2022.

 

Financial Highlights

 

Net interest income for the fourth quarter of 2023 was $115.8 million, a decrease of 4.3% from the previous quarter and a decrease of 17.7% from the same quarter of 2022. The decrease in net interest income in the fourth 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 Fourth Quarter 2023 Financial Results		Page 2

 

Net interest margin was 2.13% in the fourth quarter of 2023, unchanged from the previous quarter and a decrease of 47 basis points from the same quarter of 2022. Net interest margin in the fourth quarter of 2023 was negatively impacted by higher funding costs, partially offset by higher earning asset yields.

The average yield on loans and leases was 4.54% in the fourth quarter of 2023, up 20 basis points from the prior quarter and up 73 basis points from the same quarter of 2022. The average yield on total earning assets was 3.85% in the fourth quarter of 2023, up 13 basis points from the prior quarter and up 68 basis points from the same quarter of 2022. The average cost of interest-bearing deposits was 2.30% in the fourth quarter of 2023, up 35 basis points from the prior quarter and up 161 basis points from the same quarter of 2022. The average cost of total deposits, including noninterest-bearing deposits, was 1.67%, up 27 basis points from the prior quarter and up 121 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 $42.3 million in the fourth quarter of 2023, a decrease of 16.0% from the previous quarter and an increase of 2.7% from the same period in 2022. Noninterest income in the third quarter of 2023 included a $14.7 million gain from the early termination of private repurchase agreements, partially offset by a $4.6 million net loss related to investment securities sales and a negative $0.8 million adjustment related to a change in the Visa Class B conversion ratio. Adjusted for these items in the prior quarter, noninterest income increased by 3.0% quarter over quarter.

Noninterest expense was $116.0 million in the fourth quarter of 2023, an increase of 9.8% from the previous quarter and an increase of 12.9% from the same quarter of 2022. Noninterest expense in the fourth quarter of 2023 included an industry-wide FDIC Special Assessment of $14.7 million and $1.7 million of expense savings that are not expected to recur in 2024. Noninterest expense in the third quarter of 2023 included separation expenses of $2.1 million and extraordinary expenses related to the Maui wildfires of $0.4 million. Adjusted core noninterest expense in the fourth quarter of 2023 was $102.9 million, down slightly from adjusted noninterest expense in the previous quarter and up 0.2% from the noninterest expense in the same period in 2022.

The effective tax rate for the fourth quarter of 2023 was 23.25% compared with 24.76% in the previous quarter and 22.40% during the same quarter of 2022. The decrease in the effective tax rate on a linked quarter basis was mainly due to discrete tax items recognized in the fourth quarter. The year over year increase was primarily due to tax benefits in the fourth quarter of 2022 related to our agreement to sell assets that terminated certain leveraged leases.

Asset Quality

The Company’s overall asset quality remained strong during the fourth quarter of 2023. Provision for credit losses for the fourth quarter of 2023 was $2.5 million compared with $2.0 million in the previous quarter and $0.2 million in the same quarter of 2022.

 

Total non-performing assets were $11.7 million at December 31, 2023, up $0.2 million from September 30, 2023 and down $0.9 million from December 31, 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, unchanged from the end of the prior quarter and a decrease of 1 basis point from the same quarter of 2022.

 

 

 

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

 

Net loan and lease charge-offs during the fourth quarter of 2023 were $1.7 million or 5 basis points annualized of total average loans and leases outstanding. Net loan and lease charge-offs for the fourth quarter of 2023 were comprised of charge-offs of $3.5 million partially offset by recoveries of $1.8 million. Compared to the prior quarter, net loan and lease charge-offs decreased by $0.3 million or 1 basis point annualized on total average loans and leases outstanding. Compared to the same quarter of 2022, net loan and lease charge-offs decreased by $0.1 million.

The allowance for credit losses on loans and leases was $146.4 million at December 31, 2023, an increase of $1.1 million from September 30, 2023 and an increase of $2.0 million from December 31, 2022. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.05% at the end of the quarter, up 1 basis point from the end of the prior quarter and down 1 basis point from the same quarter of 2022.

 

Balance Sheet

Total assets were $23.7 billion at December 31, 2023, an increase of 0.8% from September 30, 2023 and an increase of 0.5% from December 31, 2022. The increase from the prior quarter was primarily due to an increase in funds sold. The increase from the same period in 2022 was primarily due to increases in funds sold and loans and leases partially offset by a decrease in investment securities.

The investment securities portfolio was $7.4 billion at December 31, 2023, a decrease of 0.9% from September 30, 2023 and a decrease of 10.3% from December 31, 2022. The decrease from the prior quarter was mainly due to cashflows from the portfolio not being reinvested into securities. The decrease from the same period in 2022 was primarily due to $159.1 million of investment securities sold in the third quarter of 2023 and 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 $14.0 billion at December 31, 2023, an increase of 0.3% from September 30, 2023 and an increase of 2.3% from December 31, 2022. Total commercial loans were $5.8 billion at December 31, 2023, an increase of 1.7% from the prior quarter and an increase of 5.7% from the same quarter of 2022, primarily due to an increase in our commercial and industrial portfolio. Total consumer loans were $8.2 billion as of December 31, 2023, a decrease of 0.6% from the prior quarter and an increase of 0.1% from the same period in 2022.

Total deposits were $21.1 billion at December 31, 2023, an increase of 1.2% from September 30, 2023 and an increase of 2.1% from December 31, 2022. Noninterest-bearing deposits made up 29% of total deposit balances as of December 31, 2023, up from 27% as of September 30, 2023, and down from 33% as of December 31, 2022. Average total deposits were $20.7 billion for the fourth quarter of 2023, up 1.0% from $20.5 billion in the prior quarter, and up 1.8% from $20.3 billion in the fourth quarter of 2022. As of December 31, 2023, insured and uninsured but collateralized deposits represent 58% of total deposit balances, relatively flat from 58% as of September 30, 2023, and up from 57% as of December 31, 2022. As of December 31, 2023, our readily available liquidity of $10.2 billion exceeded total uninsured and uncollateralized deposits of $8.9 billion.

 

 

 

 

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

 

 

Capital and Dividends

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

The Tier 1 Capital Ratio was 12.56% at December 31, 2023 compared with 12.53% at September 30, 2023 and 12.15% at December 31, 2022. The Tier 1 Leverage Ratio was 7.51% at December 31, 2023, up 29 basis points from 7.22% at September 30, 2023 and up 14 basis points from 7.37% at December 31, 2022. The increases from the prior quarter were due to an increase in Tier 1 capital as a result of retained earnings growth and a decrease in average total assets. The increases from the same period in 2022 were mainly due to an increase in Tier 1 capital as a result of retained earnings growth.

No shares of common stock were repurchased under the share repurchase program in the fourth quarter of 2023. Total remaining buyback authority under the share repurchase program was $126.0 million at December 31, 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 March 14, 2024 to shareholders of record at the close of business on February 29, 2024.

On January 5, 2024, the Company announced that 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 February 1, 2024 to shareholders of record of the preferred stock as of the close of business on January 16, 2024.

 

Conference Call Information

 

The Company will review its fourth quarter financial results today at 8:00 a.m. Hawai‘i Time (1:00 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/BIa96006b6de704a3690a1e0eeb5330a09. A replay of the webcast will be available for one year beginning approximately 11:00 a.m. Hawai‘i Time on Monday, January 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.

 

 

 

 

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Bank of Hawai‘i Corporation Fourth 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, June 30, 2023 and September 30, 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 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.

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Bank of Hawai‘i Corporation and Subsidiaries
Financial Highlights																	Table 1
	Three Months Ended												Year Ended
	December 31,				September 30,				December 31,				December 31,
(dollars in thousands, except per share amounts)	2023				2023				2022				2023				2022
For the Period:
Operating Results
Net Interest Income	$	115,785			$	120,937			$	140,738			$	497,025			$	540,558
Provision for Credit Losses		2,500				2,000				200				9,000				(7,800	)
Total Noninterest Income		42,283				50,334				41,172				176,609				157,541
Total Noninterest Expense		115,962				105,601				102,703				437,518				415,265
Pre-Provision Net Revenue		42,106				65,670				79,207				236,116				282,834
Net Income		30,396				47,903				61,307				171,202				225,804
Net Income Available to Common Shareholders 1		28,427				45,934				59,338				163,326				217,928
Basic Earnings Per Common Share		0.72				1.17				1.51				4.16				5.50
Diluted Earnings Per Common Share		0.72				1.17				1.50				4.14				5.48
Dividends Declared Per Common Share		0.70				0.70				0.70				2.80				2.80
Performance Ratios
Return on Average Assets		0.51		%		0.78		%		1.05		%		0.71		%		0.98		%
Return on Average Shareholders' Equity		8.86				13.92				18.91				12.63				16.10
Return on Average Common Equity		9.55				15.38				21.28				13.89				17.83
Efficiency Ratio 2		73.36				61.66				56.46				64.95				59.49
Net Interest Margin 3		2.13				2.13				2.60				2.24				2.50
Dividend Payout Ratio 4		97.22				59.83				46.36				67.31				50.91
Average Shareholders' Equity to Average Assets		5.80				5.60				5.56				5.66				6.10
Average Balances
Average Loans and Leases	$	13,906,114			$	13,903,214			$	13,452,791			$	13,851,551			$	12,896,510
Average Assets		23,449,215				24,387,421				23,147,398				23,954,186				23,006,671
Average Deposits		20,704,070				20,492,082				20,341,327				20,412,378				20,550,739
Average Shareholders' Equity		1,360,641				1,365,143				1,286,291				1,355,536				1,402,533
Per Share of Common Stock
Book Value	$	31.05			$	29.78			$	28.54			$	31.05			$	28.54
Tangible Book Value		30.25				28.99				27.75				30.25				27.75
Market Value
Closing		72.46				49.69				77.56				72.46				77.56
High		75.19				58.63				82.87				81.73				92.38
Low		45.56				39.02				70.15				30.83				70.15
									December 31,				September 30,				December 31,
									2023				2023				2022
As of Period End:
Balance Sheet Totals
Loans and Leases									$	13,965,026			$	13,919,491			$	13,646,420
Total Assets										23,733,296				23,549,785				23,606,877
Total Deposits										21,055,045				20,802,309				20,615,696
Other Debt										560,190				560,217				410,294
Total Shareholders' Equity										1,414,242				1,363,840				1,316,995
Asset Quality
Non-Performing Assets									$	11,747			$	11,519			$	12,647
Allowance for Credit Losses - Loans and Leases										146,403				145,263				144,439
Allowance to Loans and Leases Outstanding 5										1.05		%		1.04		%		1.06		%
Capital Ratios 6
Common Equity Tier 1 Capital Ratio										11.33		%		11.29		%		10.92		%
Tier 1 Capital Ratio										12.56				12.53				12.15
Total Capital Ratio										13.60				13.56				13.17
Tier 1 Leverage Ratio										7.51				7.22				7.37
Total Shareholders' Equity to Total Assets										5.96				5.79				5.58
Tangible Common Equity to Tangible Assets 7										5.07				4.90				4.69
Tangible Common Equity to Risk-Weighted Assets 7										8.45				8.10				7.76
Non-Financial Data
Full-Time Equivalent Employees										1,899				1,919				2,076
Branches										51				51				51
ATMs										318				320				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 December 31, 2023 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".

 

 

 

 

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Bank of Hawai‘i Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures							Table 2
	December 31,			September 30,			December 31,
(dollars in thousands)	2023			2023			2022
Total Shareholders' Equity	$	1,414,242		$	1,363,840		$	1,316,995
Less: Preferred Stock		180,000			180,000			180,000
Goodwill		31,517			31,517			31,517
Tangible Common Equity	$	1,202,725		$	1,152,323		$	1,105,478
Total Assets	$	23,733,296		$	23,549,785		$	23,606,877
Less: Goodwill		31,517			31,517			31,517
Tangible Assets	$	23,701,779		$	23,518,268		$	23,575,360
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements 1	$	14,226,780		$	14,222,825		$	14,238,798
Total Shareholders' Equity to Total Assets		5.96	%		5.79	%		5.58	%
Tangible Common Equity to Tangible Assets (Non-GAAP)		5.07	%		4.90	%		4.69	%
Tier 1 Capital Ratio 1		12.56	%		12.53	%		12.15	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1		8.45	%		8.10	%		7.76	%
1  Regulatory capital ratios as of December 31, 2023 are preliminary.

 

 

 

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Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Income														Table 3
	Three Months Ended										Year Ended
	December 31,			September 30,			December 31,				December 31,
(dollars in thousands, except per share amounts)	2023			2023			2022				2023			2022
Interest Income
Interest and Fees on Loans and Leases	$	158,324		$	151,245		$	128,683			$	590,611		$	439,798
Income on Investment Securities
Available-for-Sale		22,782			23,552			18,476				93,528			70,555
Held-to-Maturity		22,589			22,838			23,708				92,750			81,490
Deposits		23			18			13				86			32
Funds Sold		5,705			12,828			1,093				28,294			4,274
Other		924			1,464			340				5,106			1,217
Total Interest Income		210,347			211,945			172,313				810,375			597,366
Interest Expense
Deposits		87,121			72,153			23,494				250,847			39,678
Securities Sold Under Agreements to Repurchase		1,459			4,034			4,289				16,306			12,600
Funds Purchased		-			-			318				888			417
Short-Term Borrowings		-			-			1,978				5,713			2,070
Other Debt		5,982			14,821			1,496				39,596			2,043
Total Interest Expense		94,562			91,008			31,575				313,350			56,808
Net Interest Income		115,785			120,937			140,738				497,025			540,558
Provision for Credit Losses		2,500			2,000			200				9,000			(7,800	)
Net Interest Income After Provision for Credit Losses		113,285			118,937			140,538				488,025			548,358
Noninterest Income
Trust and Asset Management		11,144			10,548			10,652				43,597			43,803
Mortgage Banking		1,016			1,059			991				4,255			5,980
Service Charges on Deposit Accounts		7,949			7,843			7,513				31,116			29,620
Fees, Exchange, and Other Service Charges		13,774			13,824			13,906				55,556			54,914
Investment Securities Losses, Net		(1,619	)		(6,734	)		(1,124	)			(11,455	)		(6,111	)
Annuity and Insurance		1,271			1,156			1,087				4,736			3,782
Bank-Owned Life Insurance		3,176			2,749			2,475				11,643			9,968
Other		5,572			19,889			5,672				37,161			15,585
Total Noninterest Income		42,283			50,334			41,172				176,609			157,541
Noninterest Expense
Salaries and Benefits		53,991			58,825			57,639				234,079			235,270
Net Occupancy		9,734			10,327			9,499				39,924			39,441
Net Equipment		9,826			9,477			9,942				40,251			38,374
Data Processing		4,948			4,706			4,579				18,836			18,362
Professional Fees		5,079			3,846			3,958				17,459			14,557
FDIC Insurance		18,545			3,361			1,774				28,313			6,546
Other		13,839			15,059			15,312				58,656			62,715
Total Noninterest Expense		115,962			105,601			102,703				437,518			415,265
Income Before Provision for Income Taxes		39,606			63,670			79,007				227,116			290,634
Provision for Income Taxes		9,210			15,767			17,700				55,914			64,830
Net Income	$	30,396		$	47,903		$	61,307			$	171,202		$	225,804
Preferred Stock Dividends		1,969			1,969			1,969				7,877			7,877
Net Income Available to Common Shareholders	$	28,427		$	45,934		$	59,338			$	163,325		$	217,927
Basic Earnings Per Common Share	$	0.72		$	1.17		$	1.51			$	4.16		$	5.50
Diluted Earnings Per Common Share	$	0.72		$	1.17		$	1.50			$	4.14		$	5.48
Dividends Declared Per Common Share	$	0.70		$	0.70		$	0.70			$	2.80		$	2.80
Basic Weighted Average Common Shares		39,303,525			39,274,626			39,395,338				39,274,291			39,601,089
Diluted Weighted Average Common Shares		39,539,191			39,420,531			39,618,896				39,428,912			39,788,002

 

 

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Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)						Table 4
	Three Months Ended				Year Ended
	December 31,	September 30,	December 31,		December 31,
(dollars in thousands)	2023	2023	2022		2023	2022
Net Income	$30,396	$47,903	$61,307		$171,202	$225,804
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities	43,357	(18,264)	5,677		36,152	(376,694)
Defined Benefit Plans	1,566	84	7,359		1,818	8,418
Other Comprehensive Income (Loss)	44,923	(18,180)	13,036		37,970	(368,276)
Comprehensive Income (Loss)	$75,319	$29,723	$74,343		$209,172	$(142,472)

 

 

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Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Condition							Table 5
	December 31,			September 30,			December 31,
(dollars in thousands)	2023			2023			2022
Assets
Interest-Bearing Deposits in Other Banks	$	2,761		$	4,676		$	3,724
Funds Sold		690,112			386,086			81,364
Investment Securities
Available-for-Sale		2,408,933			2,387,324			2,844,823
Held-to-Maturity (Fair Value of $4,253,637; $4,104,469; and $4,615,393)		4,997,335			5,088,013			5,414,139
Loans Held for Sale		3,124			1,450			1,035
Loans and Leases		13,965,026			13,919,491			13,646,420
Allowance for Credit Losses		(146,403	)		(145,263	)		(144,439	)
Net Loans and Leases		13,818,623			13,774,228			13,501,981
Total Earning Assets		21,920,888			21,641,777			21,847,066
Cash and Due from Banks		308,071			261,464			316,679
Premises and Equipment, Net		194,855			196,094			206,777
Operating Lease Right-of-Use Assets		86,110			86,896			92,307
Accrued Interest Receivable		66,525			65,541			61,002
Foreclosed Real Estate		2,098			1,040			1,040
Mortgage Servicing Rights		20,880			21,273			22,619
Goodwill		31,517			31,517			31,517
Bank-Owned Life Insurance		462,894			458,260			453,882
Other Assets		639,458			785,923			573,988
Total Assets	$	23,733,296		$	23,549,785		$	23,606,877
Liabilities
Deposits
Noninterest-Bearing Demand	$	6,058,554		$	5,687,442		$	6,714,982
Interest-Bearing Demand		3,749,717			3,925,469			4,232,567
Savings		8,189,472			8,530,384			7,962,410
Time		3,057,302			2,659,014			1,705,737
Total Deposits		21,055,045			20,802,309			20,615,696
Securities Sold Under Agreements to Repurchase		150,490			150,490			725,490
Other Debt		560,190			560,217			410,294
Operating Lease Liabilities		94,693			95,453			100,526
Retirement Benefits Payable		23,673			26,074			26,991
Accrued Interest Payable		41,023			33,434			9,698
Taxes Payable		7,636			6,965			7,104
Other Liabilities		386,304			511,003			394,083
Total Liabilities		22,319,054			22,185,945			22,289,882
Shareholders' Equity
Preferred Stock ($.01 par value; authorized 180,000 shares;
issued / outstanding: December 31, 2023; September 30, 2023;
and December 31, 2022 - 180,000)		180,000			180,000			180,000
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2023 - 58,755,465 / 39,753,138;
September 30, 2023 - 58,767,820 / 39,748,700; and December 31, 2022 - 58,733,625 / 39,835,750)		583			583			582
Capital Surplus		636,422			632,425			620,578
Accumulated Other Comprehensive Loss		(396,688	)		(441,611	)		(434,658	)
Retained Earnings		2,107,569			2,108,702			2,055,912
Treasury Stock, at Cost (Shares: December 31, 2023 - 19,002,327; September 30, 2023 - 19,019,120;
and December 31, 2022 - 18,897,875)		(1,113,644	)		(1,116,259	)		(1,105,419	)
Total Shareholders' Equity		1,414,242			1,363,840			1,316,995
Total Liabilities and Shareholders' Equity	$	23,733,296		$	23,549,785		$	23,606,877

 

 

 

 

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Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																									Table 6
																Accumulated
																Other
	Preferred						Common									Comprehensive
	Shares			Preferred			Shares			Common			Capital			Income			Retained			Treasury
(dollars in thousands)	Outstanding			Stock			Outstanding			Stock			Surplus			(Loss)			Earnings			Stock			Total
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		-			-			-			-			-			-			225,804			-			225,804
Other Comprehensive Loss		-			-			-			-			-			(368,276	)		-			-			(368,276	)
Share-Based Compensation		-			-			-			-			16,066			-			-			-			16,066
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits		-			-			272,007			1			2,004			-			167			5,115			7,287
Common Stock Repurchased		-			-			(689,450	)		-			-			-			-			(55,063	)		(55,063	)
Cash Dividends Declared Common Stock ($2.80 per share)		-			-			-			-			-			-			(112,557	)		-			(112,557	)
Cash Dividends Declared Preferred Stock		-			-			-			-			-			-			(7,877	)		-			(7,877	)
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		-		$	-			-		$	-		$	-		$	-		$	171,202		$	-		$	171,202
Other Comprehensive Income		-			-			-			-			-			37,970			-			-			37,970
Share-Based Compensation		-			-			-			-			15,656			-			-			-			15,656
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits		-			-			130,286			1			188			-			127			6,065			6,381
Common Stock Repurchased		-			-			(212,898	)		-			-			-			-			(14,290	)		(14,290	)
Cash Dividends Declared Common Stock ($2.80 per share)		-			-			-			-			-			-			(111,795	)		-			(111,795	)
Cash Dividends Declared Preferred Stock		-			-			-			-			-			-			(7,877	)		-			(7,877	)
Balance as of December 31, 2023		180,000		$	180,000			39,753,138		$	583		$	636,422		$	(396,688	)	$	2,107,569		$	(1,113,644	)	$	1,414,242

 

 

 

 

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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
	December 31, 2023										September 30, 2023										December 31, 2022
	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		$	-			2.08		%	$	2.9		$	-			2.40		%	$	2.2		$	-			2.32		%
Funds Sold		415.0			5.7			5.38				944.8			12.8			5.31				118.1			1.2			3.62
Investment Securities
Available-for-Sale
Taxable		2,362.4			22.8			3.84				2,605.4			23.5			3.60				2,593.5			18.4			2.83
Non-Taxable		1.8			-			1.90				3.5			-			3.21				7.5			0.1			4.14
Held-to-Maturity
Taxable		5,013.6			22.4			1.79				5,118.6			22.7			1.77				5,401.9			23.5			1.74
Non-Taxable		34.9			0.2			2.10				35.0			0.2			2.10				35.4			0.2			2.10
Total Investment Securities		7,412.7			45.4			2.45				7,762.5			46.4			2.39				8,038.3			42.2			2.10
Loans Held for Sale		3.8			0.1			6.89				3.8			0.1			6.28				3.3			-			5.65
Loans and Leases 3
Commercial and Industrial		1,603.5			21.3			5.27				1,515.0			18.9			4.96				1,379.9			14.8			4.25
Paycheck Protection Program		11.9			-			1.36				13.1			-			1.32				21.3			0.1			2.30
Commercial Mortgage		3,760.1			51.5			5.42				3,792.6			51.1			5.35				3,627.4			40.6			4.44
Construction		279.5			4.8			6.84				241.9			3.7			6.09				246.9			3.3			5.29
Commercial Lease Financing		60.1			0.3			1.95				62.6			0.3			1.84				72.0			0.3			1.49
Residential Mortgage		4,676.0			45.1			3.86				4,715.3			42.8			3.62				4,617.9			38.9			3.37
Home Equity		2,276.2			20.9			3.65				2,283.5			20.1			3.49				2,207.7			17.9			3.23
Automobile		845.7			8.6			4.02				868.0			8.2			3.75				851.1			7.0			3.29
Other 4		393.1			6.3			6.40				411.2			6.5			6.24				428.6			6.1			5.64
Total Loans and Leases		13,906.1			158.8			4.54				13,903.2			151.6			4.34				13,452.8			129.0			3.81
Other		60.0			1.0			6.16				91.6			1.5			6.40				50.1			0.4			2.72
Total Earning Assets		21,801.9			211.0			3.85				22,708.8			212.4			3.72				21,664.8			172.8			3.17
Cash and Due from Banks		243.8										289.8										244.3
Other Assets		1,403.5										1,388.8										1,238.3
Total Assets	$	23,449.2									$	24,387.4									$	23,147.4
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	3,737.3			7.7			0.82			$	3,929.7			6.6			0.67			$	4,131.4			3.5			0.33
Savings		8,441.0			51.1			2.40				7,952.6			39.1			1.95				7,869.9			13.4			0.68
Time		2,830.0			28.3			3.97				2,767.8			26.5			3.79				1,467.7			6.6			1.78
Total Interest-Bearing Deposits		15,008.3			87.1			2.30				14,650.1			72.2			1.95				13,469.0			23.5			0.69
Funds Purchased		-			-			-				-			-			-				36.6			0.3			3.40
Short-Term Borrowings		-			-			-				-			-			-				198.3			2.0			3.90
Securities Sold Under Agreements to Repurchase		150.5			1.5			3.79				528.5			4.0			2.99				594.5			4.3			2.82
Other Debt		560.2			6.0			4.24				1,365.7			14.8			4.31				137.5			1.5			4.32
Total Interest-Bearing Liabilities		15,719.0			94.6			2.39				16,544.3			91.0			2.18				14,435.9			31.6			0.87
Net Interest Income				$	116.4									$	121.4									$	141.2
Interest Rate Spread								1.46		%								1.54		%								2.30		%
Net Interest Margin								2.13		%								2.13		%								2.60		%
Noninterest-Bearing Demand Deposits		5,695.8										5,842.0										6,872.3
Other Liabilities		673.8										636.0										552.9
Shareholders' Equity		1,360.6										1,365.1										1,286.3
Total Liabilities and Shareholders' Equity	$	23,449.2									$	24,387.4									$	23,147.4
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 $605,000, $437,000, and $433,000
for the three months ended December 31, 2023, September 30, 2023, and December 31, 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.

 

 

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Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1														Table 7b
	Year Ended										Year Ended
	December 31, 2023										December 31, 2022
	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	$	3.5		$	0.1			2.44		%	$	3.0		$	-			1.05		%
Funds Sold		540.4			28.3			5.24				260.5			4.3			1.64
Investment Securities
Available-for-Sale
Taxable		2,631.0			93.4			3.55				3,644.2			70.5			1.93
Non-Taxable		6.1			0.2			4.06				4.0			0.1			2.92
Held-to-Maturity
Taxable		5,173.9			92.2			1.78				4,750.0			80.9			1.70
Non-Taxable		35.1			0.7			2.10				35.6			0.7			2.10
Total Investment Securities		7,846.1			186.5			2.38				8,433.8			152.2			1.80
Loans Held for Sale		3.0			0.2			6.16				6.9			0.3			3.70
Loans and Leases 3
Commercial and Industrial		1,497.1			74.0			4.94				1,349.3			46.2			3.42
Paycheck Protection Program		14.1			0.2			1.63				44.0			2.7			6.07
Commercial Mortgage		3,776.2			197.0			5.22				3,420.1			121.9			3.56
Construction		262.1			16.0			6.09				232.6			10.6			4.56
Commercial Lease Financing		63.7			0.8			1.30				88.5			1.3			1.49
Residential Mortgage		4,690.5			168.9			3.60				4,484.2			147.4			3.29
Home Equity		2,268.0			78.2			3.45				2,072.2			62.1			3.00
Automobile		866.1			31.8			3.67				786.1			25.4			3.23
Other 4		413.8			25.3			6.12				419.5			23.0			5.49
Total Loans and Leases		13,851.6			592.2			4.28				12,896.5			440.6			3.42
Other		78.3			5.1			6.51				40.5			1.2			3.01
Total Earning Assets		22,322.9			812.4			3.64				21,641.2			598.6			2.77
Cash and Due from Banks		292.1										237.4
Other Assets		1,339.2										1,128.1
Total Assets	$	23,954.2									$	23,006.7
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	3,978.7			27.0			0.68			$	4,377.1			6.1			0.14
Savings		8,018.4			137.4			1.71				7,767.7			22.9			0.30
Time		2,424.8			86.4			3.56				1,135.5			10.7			0.94
Total Interest-Bearing Deposits		14,421.9			250.8			1.74				13,280.3			39.7			0.30
Funds Purchased		18.5			0.9			4.79				18.5			0.4			2.26
Short-Term Borrowings		114.0			5.7			5.01				58.6			2.1			3.53
Securities Sold Under Agreements to Repurchase		530.9			16.3			3.07				479.8			12.6			2.63
Other Debt		921.8			39.7			4.30				42.4			2.0			4.82
Total Interest-Bearing Liabilities		16,007.1			313.4			1.96				13,879.6			56.8			0.41
Net Interest Income				$	499.0									$	541.8
Interest Rate Spread								1.68		%								2.36		%
Net Interest Margin								2.24		%								2.50		%
Noninterest-Bearing Demand Deposits		5,990.5										7,270.4
Other Liabilities		601.1										454.2
Shareholders' Equity		1,355.5										1,402.5
Total Liabilities and Shareholders' Equity	$	23,954.2									$	23,006.7
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 $2,008,000 and $1,251,000
for the year ended December 31, 2023 and December 31, 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.

 

 

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Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended December 31, 2023
	Compared to September 30, 2023
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	(7.3	)	$	0.2		$	(7.1	)
Investment Securities
Available-for-Sale
Taxable		(2.2	)		1.5			(0.7	)
Held-to-Maturity
Taxable		(0.5	)		0.2			(0.3	)
Total Investment Securities		(2.7	)		1.7			(1.0	)
Loans and Leases
Commercial and Industrial		1.2			1.2			2.4
Commercial Mortgage		(0.4	)		0.8			0.4
Construction		0.6			0.5			1.1
Residential Mortgage		(0.4	)		2.7			2.3
Home Equity		(0.1	)		0.9			0.8
Automobile		(0.2	)		0.6			0.4
Other 2		(0.4	)		0.2			(0.2	)
Total Loans and Leases		0.3			6.9			7.2
Other		(0.4	)		(0.1	)		(0.5	)
Total Change in Interest Income		(10.1	)		8.7			(1.4	)
Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.3	)		1.4			1.1
Savings		2.5			9.5			12.0
Time		0.6			1.2			1.8
Total Interest-Bearing Deposits		2.8			12.1			14.9
Securities Sold Under Agreements to Repurchase		(3.5	)		1.0			(2.5	)
Other Debt		(8.6	)		(0.2	)		(8.8	)
Total Change in Interest Expense		(9.3	)		12.9			3.6
Change in Net Interest Income	$	(0.8	)	$	(4.2	)	$	(5.0	)
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.

 

 

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Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8b
	Three Months Ended December 31, 2023
	Compared to December 31, 2022
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	3.8		$	0.7		$	4.5
Investment Securities
Available-for-Sale
Taxable		(1.8	)		6.2			4.4
Non-Taxable		-			(0.1	)		(0.1	)
Held-to-Maturity
Taxable		(1.7	)		0.6			(1.1	)
Total Investment Securities		(3.5	)		6.7			3.2
Loans Held for Sale		-			0.1			0.1
Loans and Leases
Commercial and Industrial		2.6			3.9			6.5
Paycheck Protection Program		-			(0.1	)		(0.1	)
Commercial Mortgage		1.6			9.3			10.9
Construction		0.4			1.1			1.5
Residential Mortgage		0.5			5.7			6.2
Home Equity		0.6			2.4			3.0
Automobile		-			1.6			1.6
Other 2		(0.6	)		0.8			0.2
Total Loans and Leases		5.1			24.7			29.8
Other		0.1			0.5			0.6
Total Change in Interest Income		5.5			32.7			38.2
Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.4	)		4.6			4.2
Savings		1.0			36.7			37.7
Time		9.4			12.3			21.7
Total Interest-Bearing Deposits		10.0			53.6			63.6
Funds Purchased		(0.3	)		-			(0.3	)
Short-Term Borrowings		(2.0	)		-			(2.0	)
Securities Sold Under Agreements to Repurchase		(3.9	)		1.1			(2.8	)
Other Debt		4.5			-			4.5
Total Change in Interest Expense		8.3			54.7			63.0
Change in Net Interest Income	$	(2.8	)	$	(22.0	)	$	(24.8	)
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.

 

 

 

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Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8c
	Year Ended December 31, 2023
	Compared to December 31, 2022
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	0.1		$	-		$	0.1
Funds Sold		7.9			16.1			24.0
Investment Securities
Available-for-Sale
Taxable		(23.7	)		46.6			22.9
Non-Taxable		0.1			-			0.1
Held-to-Maturity
Taxable		7.4			3.9			11.3
Total Investment Securities		(16.2	)		50.5			34.3
Loans Held for Sale		(0.2	)		0.1			(0.1	)
Loans and Leases
Commercial and Industrial		5.5			22.3			27.8
Paycheck Protection Program		(1.2	)		(1.3	)		(2.5	)
Commercial Mortgage		13.8			61.3			75.1
Construction		1.5			3.9			5.4
Commercial Lease Financing		(0.4	)		(0.1	)		(0.5	)
Residential Mortgage		7.0			14.5			21.5
Home Equity		6.2			9.9			16.1
Automobile		2.7			3.7			6.4
Other 2		(0.3	)		2.6			2.3
Total Loans and Leases		34.8			116.8			151.6
Other		1.7			2.2			3.9
Total Change in Interest Income		28.1			185.7			213.8
Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.6	)		21.5			20.9
Savings		0.8			113.7			114.5
Time		21.8			53.9			75.7
Total Interest-Bearing Deposits		22.0			189.1			211.1
Funds Purchased		-			0.5			0.5
Short-Term Borrowings		2.5			1.1			3.6
Securities Sold Under Agreements to Repurchase		1.4			2.3			3.7
Other Debt		37.9			(0.2	)		37.7
Total Change in Interest Expense		63.8			192.8			256.6
Change in Net Interest Income	$	(35.7	)	$	(7.1	)	$	(42.8	)
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.

 

 

 

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Bank of Hawai‘i Corporation and Subsidiaries
Salaries and Benefits						Table 9
	Three Months Ended				Year Ended
	December 31,	September 30,	December 31,		December 31,
(dollars in thousands)	2023	2023	2022		2023	2022
Salaries	$38,492	$39,426	$37,395		$154,497	$146,840
Incentive Compensation	3,402	2,956	5,356		13,339	23,425
Share-Based Compensation	3,443	4,072	3,901		14,770	15,220
Commission Expense	700	676	830		2,798	4,708
Retirement and Other Benefits	2,521	3,809	4,065		15,707	17,242
Payroll Taxes	2,598	2,921	2,591		14,677	13,395
Medical, Dental, and Life Insurance	2,500	2,835	3,528		12,767	11,958
Separation Expense	335	2,130	(27)		5,524	2,482
Total Salaries and Benefits	$53,991	$58,825	$57,639		$234,079	$235,270

 

 

 

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Bank of Hawai‘i Corporation and Subsidiaries
Loan and Lease Portfolio Balances													Table 10
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	2023			2023			2023			2023			2022
Commercial
Commercial and Industrial	$	1,652,699		$	1,569,572		$	1,502,676		$	1,425,916		$	1,389,066
Paycheck Protection Program		11,369			12,529			13,789			15,175			19,579
Commercial Mortgage		3,749,016			3,784,339			3,796,769			3,826,283			3,725,542
Construction		304,463			251,507			236,428			232,903			260,825
Lease Financing		59,939			61,522			62,779			65,611			69,491
Total Commercial		5,777,486			5,679,469			5,612,441			5,565,888			5,464,503
Consumer
Residential Mortgage		4,684,171			4,699,140			4,721,976			4,691,298			4,653,072
Home Equity		2,264,827			2,285,974			2,278,105			2,260,001			2,225,950
Automobile		837,830			856,113			878,767			877,979			870,396
Other 1		400,712			398,795			423,600			429,356			432,499
Total Consumer		8,187,540			8,240,022			8,302,448			8,258,634			8,181,917
Total Loans and Leases	$	13,965,026		$	13,919,491		$	13,914,889		$	13,824,522		$	13,646,420
1  Comprised of other revolving credit, installment, and lease financing.
Deposits
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	2023			2023			2023			2023			2022
Consumer	$	10,319,809		$	10,036,261		$	10,018,931		$	10,158,833		$	10,304,335
Commercial		8,601,224			8,564,536			8,019,971			8,594,441			8,569,670
Public and Other		2,134,012			2,201,512			2,469,713			1,738,026			1,741,691
Total Deposits	$	21,055,045		$	20,802,309		$	20,508,615		$	20,491,300		$	20,615,696
Average Deposits
	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	2023			2023			2023			2023			2022
Consumer	$	10,092,727		$	9,963,690		$	9,977,239		$	10,178,988		$	10,295,563
Commercial		8,581,426			8,288,891			8,138,358			8,611,960			8,588,198
Public and Other		2,029,917			2,239,501			1,903,004			1,639,934			1,457,566
Total Deposits	$	20,704,070		$	20,492,082		$	20,018,601		$	20,430,882		$	20,341,327

 

 

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Bank of Hawai‘i Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More													Table 11
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	2023			2023			2023			2023			2022
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial	$	39		$	43		$	17		$	31		$	37
Commercial Mortgage		2,884			2,996			3,107			3,216			3,309
Total Commercial		2,923			3,039			3,124			3,247			3,346
Consumer
Residential Mortgage		2,935			3,706			3,504			4,199			4,239
Home Equity		3,791			3,734			3,809			3,638			4,022
Total Consumer		6,726			7,440			7,313			7,837			8,261
Total Non-Accrual Loans and Leases		9,649			10,479			10,437			11,084			11,607
Foreclosed Real Estate		2,098			1,040			1,040			1,040			1,040
Total Non-Performing Assets	$	11,747		$	11,519		$	11,477		$	12,124		$	12,647
Accruing Loans and Leases Past Due 90 Days or More
Consumer
Residential Mortgage	$	3,814		$	3,519		$	3,560		$	4,566		$	2,429
Home Equity		1,734			2,172			2,022			1,723			1,673
Automobile		399			393			577			598			589
Other 1		648			643			633			632			683
Total Consumer		6,595			6,727			6,792			7,519			5,374
Total Accruing Loans and Leases Past Due 90 Days or More	$	6,595		$	6,727		$	6,792		$	7,519		$	5,374
Total Loans and Leases	$	13,965,026		$	13,919,491		$	13,914,889		$	13,824,522		$	13,646,420
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases		0.07	%		0.08	%		0.08	%		0.08	%		0.09	%
Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate		0.08	%		0.08	%		0.08	%		0.09	%		0.09	%
Ratio of Non-Performing Assets to Total Assets		0.05	%		0.05	%		0.04	%		0.05	%		0.05	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans
and Leases and Commercial Foreclosed Real Estate		0.05	%		0.05	%		0.06	%		0.06	%		0.06	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate		0.11	%		0.10	%		0.10	%		0.11	%		0.11	%
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	%		0.13	%		0.13	%		0.14	%		0.13	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter	$	11,519		$	11,477		$	12,124		$	12,647		$	13,868
Additions		2,683			1,318			1,116			552			704
Reductions
Payments		(2,018	)		(1,017	)		(226	)		(778	)		(1,605	)
Return to Accrual Status		(437	)		(259	)		(1,527	)		(297	)		(301	)
Charge-offs / Write-downs		-			-			(10	)		-			(19	)
Total Reductions		(2,455	)		(1,276	)		(1,763	)		(1,075	)		(1,925	)
Balance at End of Quarter	$	11,747		$	11,519		$	11,477		$	12,124		$	12,647
1  Comprised of other revolving credit, installment, and lease financing.

 

 

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Bank of Hawai‘i Corporation and Subsidiaries
Reserve for Credit Losses														Table 12
	Three Months Ended										Year Ended
	December 31,			September 30,			December 31,				December 31,
(dollars in thousands)	2023			2023			2022				2023			2022
Balance at Beginning of Period	$	151,653		$	151,702		$	152,927			$	151,247		$	164,297
Loans and Leases Charged-Off
Commercial
Commercial and Industrial		(229	)		(294	)		(196	)			(987	)		(925	)
Consumer
Residential Mortgage		-			-			-				(6	)		(80	)
Home Equity		(14	)		(13	)		(10	)			(82	)		(100	)
Automobile		(938	)		(1,353	)		(1,171	)			(5,247	)		(4,652	)
Other 1		(2,349	)		(1,957	)		(1,846	)			(8,645	)		(7,585	)
Total Loans and Leases Charged-Off		(3,530	)		(3,617	)		(3,223	)			(14,967	)		(13,342	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial		125			72			87				350			552
Consumer
Residential Mortgage		301			69			63				489			1,193
Home Equity		180			131			202				1,073			1,500
Automobile		612			721			412				2,782			2,276
Other 1		588			575			604				2,455			2,702
Total Recoveries on Loans and Leases Previously Charged-Off		1,806			1,568			1,368				7,149			8,223
Net Charged-Off - Loans and Leases		(1,724	)		(2,049	)		(1,855	)			(7,818	)		(5,119	)
Net Charged-Off - Accrued Interest Receivable		-			-			(25	)			-			(131	)
Provision for Credit Losses:
Loans and Leases		2,864			1,945			(142	)			9,782			(8,263	)
Accrued Interest Receivable		-			-			25				-			(283	)
Unfunded Commitments		(364	)		55			317				(782	)		746
Total Provision for Credit Losses		2,500			2,000			200				9,000			(7,800	)
Balance at End of Period	$	152,429		$	151,653		$	151,247			$	152,429		$	151,247
Components
Allowance for Credit Losses - Loans and Leases	$	146,403		$	145,263		$	144,439			$	146,403		$	144,439
Reserve for Unfunded Commitments		6,026			6,390			6,808				6,026			6,808
Total Reserve for Credit Losses	$	152,429		$	151,653		$	151,247			$	152,429		$	151,247
Average Loans and Leases Outstanding	$	13,906,114		$	13,903,214		$	13,452,791			$	13,851,551		$	12,896,510
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)		0.05	%		0.06	%		0.05	%			0.06	%		0.04	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 2		1.05	%		1.04	%		1.06	%			1.05	%		1.06	%
1  Comprised of other revolving credit, installment, and lease financing.
2  The numerator comprises the Allowance for Credit Losses - Loans and Leases.

 

 

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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 December 31, 2023
Net Interest Income (Loss)	$	101,868		$	51,663		$	(37,746	)	$	115,785
Provision for Credit Losses		1,738			(15	)		777			2,500
Net Interest Income (Loss) After Provision for Credit Losses		100,130			51,678			(38,523	)		113,285
Noninterest Income		32,247			7,944			2,092			42,283
Noninterest Expense		(92,793	)		(18,958	)		(4,211	)		(115,962	)
Income (Loss) Before Income Taxes		39,584			40,664			(40,642	)		39,606
Provision for Income Taxes		(10,165	)		(10,316	)		11,271			(9,210	)
Net Income (Loss)	$	29,419		$	30,348		$	(29,371	)	$	30,396
Total Assets as of December 31, 2023	$	8,486,255		$	5,831,880		$	9,415,161		$	23,733,296
Three Months December 31, 2022 1
Net Interest Income (Loss)	$	94,799		$	56,879		$	(10,940	)	$	140,738
Provision for Credit Losses		1,861			(6	)		(1,655	)		200
Net Interest Income (Loss) After Provision for Credit Losses		92,938			56,885			(9,285	)		140,538
Noninterest Income		31,526			8,288			1,358			41,172
Noninterest Expense		(82,286	)		(17,587	)		(2,830	)		(102,703	)
Income (Loss) Before Income Taxes		42,178			47,586			(10,757	)		79,007
Provision for Income Taxes		(10,840	)		(12,005	)		5,145			(17,700	)
Net Income (Loss)	$	31,338		$	35,581		$	(5,612	)	$	61,307
Total Assets as of December 31, 2022	$	8,520,459		$	5,522,916		$	9,563,502		$	23,606,877
1 Certain prior period information has been reclassified to conform to current presentation.

 

 

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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
Year Ended December 31, 2023
Net Interest Income (Loss)	$	400,380		$	215,865		$	(119,220	)	$	497,025
Provision for Credit Losses		7,773			44			1,183			9,000
Net Interest Income (Loss) After Provision for Credit Losses		392,607			215,821			(120,403	)		488,025
Noninterest Income		126,373			33,016			17,220			176,609
Noninterest Expense		(340,336	)		(77,486	)		(19,696	)		(437,518	)
Income (Loss) Before Income Taxes		178,644			171,351			(122,879	)		227,116
Provision for Income Taxes		(46,003	)		(42,806	)		32,895			(55,914	)
Net Income (Loss)	$	132,641		$	128,545		$	(89,984	)	$	171,202
Total Assets as of December 31, 2023	$	8,486,255		$	5,831,880		$	9,415,161		$	23,733,296
Year Ended December 31, 2022 1
Net Interest Income	$	327,445		$	209,273		$	3,840		$	540,558
Provision for Credit Losses		5,324			(206	)		(12,918	)		(7,800	)
Net Interest Income After Provision for Credit Losses		322,121			209,479			16,758			548,358
Noninterest Income		126,337			25,938			5,266			157,541
Noninterest Expense		(330,140	)		(70,601	)		(14,524	)		(415,265	)
Income Before Income Taxes		118,318			164,816			7,500			290,634
Provision for Income Taxes		(29,954	)		(40,659	)		5,783			(64,830	)
Net Income	$	88,364		$	124,157		$	13,283		$	225,804
Total Assets as of December 31, 2022	$	8,520,459		$	5,522,916		$	9,563,502		$	23,606,877
1 Certain prior period information has been reclassified to conform to current presentation.

 

 

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Bank of Hawai‘i Corporation and Subsidiaries
Selected Quarterly Financial Data																	Table 14
	Three Months Ended
	December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands, except per share amounts)	2023				2023				2023				2023				2022
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	158,324			$	151,245			$	144,541			$	136,501			$	128,683
Income on Investment Securities
Available-for-Sale		22,782				23,552				23,301				23,893				18,476
Held-to-Maturity		22,589				22,838				23,375				23,948				23,708
Deposits		23				18				18				27				13
Funds Sold		5,705				12,828				6,395				3,366				1,093
Other		924				1,464				2,121				597				340
Total Interest Income		210,347				211,945				199,751				188,332				172,313
Interest Expense
Deposits		87,121				72,153				53,779				37,794				23,494
Securities Sold Under Agreements to Repurchase		1,459				4,034				5,436				5,377				4,289
Funds Purchased		-				-				184				704				318
Short-Term Borrowings		-				-				2,510				3,203				1,978
Other Debt		5,982				14,821				13,494				5,299				1,496
Total Interest Expense		94,562				91,008				75,403				52,377				31,575
Net Interest Income		115,785				120,937				124,348				135,955				140,738
Provision for Credit Losses		2,500				2,000				2,500				2,000				200
Net Interest Income After Provision for Credit Losses		113,285				118,937				121,848				133,955				140,538
Noninterest Income
Trust and Asset Management		11,144				10,548				11,215				10,690				10,652
Mortgage Banking		1,016				1,059				1,176				1,004				991
Service Charges on Deposit Accounts		7,949				7,843				7,587				7,737				7,513
Fees, Exchange, and Other Service Charges		13,774				13,824				14,150				13,808				13,906
Investment Securities Losses, Net		(1,619	)			(6,734	)			(1,310	)			(1,792	)			(1,124	)
Annuity and Insurance		1,271				1,156				1,038				1,271				1,087
Bank-Owned Life Insurance		3,176				2,749				2,876				2,842				2,475
Other		5,572				19,889				6,523				5,177				5,672
Total Noninterest Income		42,283				50,334				43,255				40,737				41,172
Noninterest Expense
Salaries and Benefits		53,991				58,825				56,175				65,088				57,639
Net Occupancy		9,734				10,327				9,991				9,872				9,499
Net Equipment		9,826				9,477				10,573				10,375				9,942
Data Processing		4,948				4,706				4,599				4,583				4,579
Professional Fees		5,079				3,846				4,651				3,883				3,958
FDIC Insurance		18,545				3,361				3,173				3,234				1,774
Other		13,839				15,059				14,874				14,884				15,312
Total Noninterest Expense		115,962				105,601				104,036				111,919				102,703
Income Before Provision for Income Taxes		39,606				63,670				61,067				62,773				79,007
Provision for Income Taxes		9,210				15,767				15,006				15,931				17,700
Net Income	$	30,396			$	47,903			$	46,061			$	46,842			$	61,307
Preferred Stock Dividends		1,969				1,969				1,969				1,969				1,969
Net Income Available to Common Shareholders	$	28,427			$	45,934			$	44,092			$	44,873			$	59,338
Basic Earnings Per Common Share	$	0.72			$	1.17			$	1.12			$	1.14			$	1.51
Diluted Earnings Per Common Share	$	0.72			$	1.17			$	1.12			$	1.14			$	1.50
Balance Sheet Totals
Loans and Leases	$	13,965,026			$	13,919,491			$	13,914,889			$	13,824,522			$	13,646,420
Total Assets		23,733,296				23,549,785				24,947,936				23,931,977				23,606,877
Total Deposits		21,055,045				20,802,309				20,508,615				20,491,300				20,615,696
Total Shareholders' Equity		1,414,242				1,363,840				1,358,279				1,354,430				1,316,995
Performance Ratios
Return on Average Assets		0.51		%		0.78		%		0.77		%		0.80		%		1.05		%
Return on Average Shareholders' Equity		8.86				13.92				13.55				14.25				18.91
Return on Average Common Equity		9.55				15.38				14.95				15.79				21.28
Efficiency Ratio 1		73.36				61.66				62.07				63.34				56.46
Net Interest Margin 2		2.13				2.13				2.22				2.47				2.60
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.

 

 

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Bank of Hawai‘i Corporation and Subsidiaries
Hawaii Economic Trends																				Table 15
	Eleven Months Ended							Year Ended
(dollars in millions; jobs in thousands)	November 30, 2023							December 31, 2022								December 31, 2021
Hawaii Economic Trends
State General Fund Revenues 1	$	8,726.1			0.6		%	$	9,441.3				16.0		%	$	8,137.9				26.9		%
General Excise and Use Tax Revenue 1		4,118.7			5.2				4,263.4				18.3				3,604.3				18.6
Jobs 2		655.6							654.5								642.6
												November 30,				December 31,
												2023				2022				2021
Unemployment, seasonally adjusted 3
Statewide													2.9		%		3.7		%		3.2		%
Honolulu County													2.6				3.3				3.7
Hawaii County													1.9				4.7				1.8
Maui County													5.9				4.5				2.4
Kauai County													1.9				4.7				2.7
								December 31,
(1-year percentage change, except months of inventory)								2023				2022				2021				2020
Housing Trends (Single Family Oahu) 4
Median Home Price									(5.0	)	%		11.6		%		19.3		%		5.2		%
Home Sales Volume (units)									(26.3	)	%		(23.2	)	%		17.9		%		2.3		%
Months of Inventory									2.8				2.1				0.8				1.4
								Monthly Visitor Arrivals,								Percentage Change
(in thousands, except percent change)								Not Seasonally Adjusted								from Previous Year
Tourism 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													858.1								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
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
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

 

 

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Bank of Hawai‘i Corporationfourth quarter 2023 financial report January 22, 2024 Exhibit 99.2

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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

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diversified, lower risk loan assets highlights broad & deep market penetration quality balance sheet performance earnings highlights strong credit period end total deposits increased 1.2% average total deposits increased 1.0% growth attributed to increase in core customer deposits total loans and leases increased by 0.3% $0.72 diluted earnings per common share 1.67% average cost of total deposits 9.55% return on average common equity industry-wide FDIC special assessment resulted in a $14.7 million charge 0.05% net charge-off rate 0.08% non-performing assets level 79% of loan portfolio real-estate secured with combined wtd avg LTV of 54% CRE portfolio comprises 27% of total loans wtd avg LTV of 55%; only 7.9% maturing in 2024; CRE office exposure only 3% of total loans $10.2 billion in readily available liquidity exceeds $8.9 billion in uninsured/uncollateralized deposits strong liquidity

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highlights – balance sheet $ in millions tier 1 capital ratio

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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 long tenured ✔ ✔ ✔

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

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long tenured deposit base note: as of December 31, 2023 (1): excludes public products and Bank of Hawai‘i accounts segment avg tenure (yrs) Commercial Core 28.0 The Private Bank 18.6 Small Business 18.3 Community 22.3 total 23.4 (1)

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stable deposit balances $ in billions spot balance increased by 1.2% from 9/30/23 average balance increased by 1.0% from 3Q23

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stabilization in NIB $ in billions

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compares 12/27/23 vs. 12/28/22; all commercial bank data derived from H.8 Assets and Liabilities of Commercial Banks in the United States, Table 9 - Assets and Liabilities of All Commercial Banks in the United States, not seasonally adjusted compares 12/31/23 vs. 12/31/22 (1) (2) 2023 deposit balances change

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cost of fundsinterest-bearing deposits source: S&P Capital IQ; KBW Regional Banking Index (KRX) as of 1/3/23

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cost of fundstotal deposits source: S&P Capital IQ; KBW Regional Banking Index (KRX) as of 1/3/23

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deposit beta performance source: S&P Capital IQ; KBW Regional Banking Index (KRX) as of 1/3/23

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note: as of December 31, 2023, FRB borrowing capacity includes Bank Term Funding Program margins, cash includes fed funds sold and cash and due from banks, and securities available includes unencumbered investment securities Bank of Hawai‘i carries substantial liquidity lines and equivalents for both day-to-day operational and liquidity backstop purposes readily available liquidity

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unemployment experience & forecast source for Hawai‘i unemployment: University of Hawaii Economic Research Organization (UHERO), seasonally adjusted source for national unemployment: Bureau of Labor Statistics, seasonally adjusted 15

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16 visitor arrivals monthly by market, indexed to January 2017 source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT) Nov-23

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

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  single family homes condominiums   Dec 2023 Dec 2022 Dec 2019 Δ Dec 2022 Δ Dec 2019 Dec 2023 Dec 2022 Dec 2019 Δ Dec 2022 Δ Dec 2019 median sales price (000s) $997 $1,050 $820 -5.1% 21.5% $510 $503 $426 1.5% 19.9% months of inventory 2.8 2.1 2.5 0.7 months 0.3 months 3.2 2.2 3.4 1.0 months -0.2 months closed sales 182 202 309 -9.9% -41.1% 272 360 428 -24.4% -36.4% median days on market 18 25 18 7 days 26 21 30 5 days 4 days stable real estate prices Oahu market indicators – December 2023 source: Honolulu Board of Realtors, compiled from MLS data

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credit performance

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lending philosophy note: as of December 31, 2023 we lend in our core markets to long-standing relationships

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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 dynamically managing credit risk de-risking the balance sheet

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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)

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loan portfolio 41% commercial 70% real estate secured wtd avg LTV 55% 59% w/ BOH ≥ 10 yrs avg bal $0.7MM CRE C&I residential mortgage home equity auto leasing other consumer construction 59% consumer 85% real estate secured wtd avg LTV 54% 60% w/ BOH ≥ 10 yrs avg bal $0.07MM 79% of portfolio secured with real estate with combined weighted average loan to value of 54% note: excludes $11MM in PPP loan balances including deferred costs and fees

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commercial real estate (CRE) 27% of total loans $3.8B CRE asset type % total CRE wtd avg LTV multi-family 24% 58% industrial 20% 56% retail 18% 55% lodging 15% 52% office 10% 55% specialty 11% 53% other 2% 48% total CRE 100% 55%

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CRE office 3% of total loans 55% wtd avg LTV $1.8MM average exposure 23% CBD (Downtown Honolulu) - 60% wtd avg LTV - 43% with repayment guaranties 4% maturing prior to 2026 highlights $0.38B

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Oahu investor office market source: Colliers rents remain stable as conversions to alternative purpose continue to drive decline in inventory 13.5 million square feet

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Honolulu multi-family market source: CoStar 30,307 units severely limited existing and new supply, compounded by the high cost of homeownership, continues to drive rental demand

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Oahu industrial market source: Colliers 41.5 million square feet vacancy rates at a historic low, while available industrial space listings remain near record low

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Oahu retail market source: Colliers 17.1 million square feet record retail sales and tourism spend continue to support post-pandemic recovery

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Oahu lodging market source: Hawaii Tourism Authority, UHERO outlook is generally positive, as inventory remains flat and occupancy & RevPar report comparably with pre-pandemic tourism 30.9 thousand rooms

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CRE scheduled maturities 8% maturing in 2024

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CRE tail risk $0.01B of CRE with LTV > 80% LTV > 80% - 0.4% of CRE, 0.1% of total loans

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construction 2% of total loans $0.3B construction asset type % total construction wtd avg LTV housing – low income / affordable 60% 56% housing – other 5% 42% retail 18% 64% industrial 8% 68% lodging 8% 56% office 1% 58% specialty 0.4% 42% total construction 100% 58%

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credit quality * 37% of total criticized in CRE with 54% wtd avg LTV

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financial update

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hedging program increased pay-fixed/receive-float swaps by $1.0 billion ($3.0 billion total notional) in 4Q23 to hedge a portion of fixed-rate asset exposure asset composition note: fixed excludes $3.0 billion of fixed-rate assets swapped to floating through the hedging program, fixed/float breakdown includes loans, investment portfolio (using par value), and fed funds sold, numbers may not add up due to rounding

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$ in millions NII and NIM decrease in earning assets deposit rates and betas remain well below peers stable NIM

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asset repricing note: numbers may not add up due to rounding, loans repricing/swaps includes $1.7 billion of fixed-rate loans swapped to floating rate assets, inv. portfolio repricing/swaps and fed funds sold includes $1.3 billion of fixed-rate available-for-sale securities swapped to floating rate assets $ in billions matured/run-off yield reinvestment opportunity $10.1 $10.2 projected repricing, maturities & prepayments $2.3 $2.3 yr 1 yr 2

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avg total earning assets yield in basis points

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noninterest income $ in millions moderate growth in core noninterest income normalizing items: +$0.8 Visa Class B conversion ratio adjustment +$4.6 net loss on securities sales -$14.7 gain on early termination of private repurchase agreements note: numbers may not add up due to rounding

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noninterest expense $ in millions disciplined expense management in challenging operating environment normalizing items: -$2.1 separation -$0.4 extraordinary expenses related to Maui wildfires note: numbers may not add up due to rounding normalizing items: -$14.7 FDIC special assessment +$1.7 other expense savings (not expected to recur in 2024)

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financial summary $ in millions, except per share amounts note: numbers may not add up due to rounding 4Q 2023 3Q 2023 4Q 2022 ∆ 3Q 2023 ∆ 4Q 2022 2023 ∆ 2022 net interest income $ 115.8 $ 120.9 $ 140.7 $ (5.2) $ (25.0) $ 497.0 $ (43.5) noninterest income 42.3   50.3   41.2   (8.1)   1.1   176.6 19.1 total revenue 158.1 171.3 181.9 (13.2) (23.8) 673.6 (24.5) noninterest expense 116.0   105.6   102.7   10.4   13.3   437.5 22.3 operating income 42.1   65.7   79.2 (23.6) (37.1) 236.1 (46.7) credit provision 2.5 2.0 0.2 0.5 2.3 9.0 16.8 income taxes 9.2 15.8 17.7 (6.6) (8.5) 55.9 (8.9) net income $ 30.4   $ 47.9   $ 61.3   $ (17.5)   $ (30.9)   $ 171.2 $ (54.6) net income available to common $ 28.4   $ 45.9   $ 59.3   $ (17.5)   $ (30.9)   $ 163.3 $ (54.6) diluted EPS $ 0.72   $ 1.17   $ 1.50   $ (0.45)   $ (0.78)   $ 4.14 $ (1.34) return on assets 0.51 % 0.78 % 1.05 % (0.27) % (0.54) % 0.71 % (0.27) % return on common equity 9.55 15.38 21.28 (5.83) (11.73) 13.89 (3.94) net interest margin 2.13 2.13 2.60 - (0.47) 2.24 (0.26) efficiency ratio 73.36 61.66 56.46 11.70 16.90 64.95 5.46 end of period balances investment portfolio $ 7,406 $ 7,475 $ 8,259 (0.9) % (10.3) % $ 7,406 (10.3) % loans and leases 13,965 13,919 13,646 0.3 2.3 13,965 2.3 total deposits 21,055 20,802 20,616 1.2 2.1 21,055 2.1 shareholders' equity 1,414 1,364 1,317 3.7 7.4 1,414 7.4

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capital note: 4Q23 regulatory capital ratios are preliminary 13.6% strong risk-based capital 13.6% RWA / total assets

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

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Q & A

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appendix

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insured/collateralized deposits note: as of December 31, 2023

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Maui portfolio 11% of total loans, 1% of total loans located in fire impacted zone $1.6B total Maui * principally comprised of loans secured by real estate secured* unsecured fire impacted zone 9.8% fire impacted zone exposure down 8.5% from prior quarter with no change in estimated potential loss of $11 million

v3.23.4

Document and Entity Information	Jan. 22, 2024
Document Document And Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Jan. 22, 2024
Entity Registrant Name	BANK OF HAWAII CORPORATION
Amendment Flag	false
Entity Central Index Key	0000046195
Entity File Number	1-6887
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	99-0148992
Entity Address, Address Line One	130 Merchant Street
Entity Address, City or Town	Honolulu
Entity Address, State or Province	HI
Entity Address, Postal Zip Code	96813
City Area Code	888
Local Phone Number	643-3888
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock [Member]
Document Document And Entity Information [Line Items]
Security 12b Title	Common Stock, par value $0.01 per share
Trading Symbol	BOH
Security Exchange Name	NYSE
Series A Preferred Stock [Member]
Document Document And Entity Information [Line Items]
Security 12b Title	Depository Shares, Each Representing 1/40th Interest in a Share of 4.375% Fixed Rate Non-Cumulative Preferred Stock, Series A
Trading Symbol	BOH.PRA
Security Exchange Name	NYSE

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