Bank of Hawai‘i Corporation Third Quarter 2023 Financial Results

By: Bank of Hawai‘i Corporation via Business Wire

October 23, 2023 at 06:45 AM EDT

Diluted Earnings Per Common Share $1.17
Net Income $47.9 Million
Total Deposits Up 1.4% Linked Quarter
Board of Directors Declares Dividend of $0.70 Per Common Share

Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $1.17 for the third quarter of 2023, compared with diluted earnings per common share of $1.12 in the previous quarter and $1.28 in the same quarter of 2022. Net income for the third quarter of 2023 was $47.9 million, up 4.0% from the previous quarter and down 9.3% from the same quarter of 2022. The return on average common equity for the third quarter of 2023 was 15.38% compared with 14.95% in the previous quarter and 16.98% in the same quarter of 2022.

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“Bank of Hawai‘i delivered another quarter of solid financial results,” said Peter Ho, Chairman, President, and CEO. “Total deposits were up 1.4% linked quarter, and average deposits were up by 2.4%, driven by growth in core relationship deposits. Our credit quality remained strong, with non-performing assets of 0.08% at quarter end and net charge offs of 0.06% in the quarter. NIM declined modestly by 9 basis points, while our core noninterest income and operating expense remained steady. Finally, one of our key priorities this quarter was to support our clients, employees, and community as we coped with the tragic situation in Maui. Taking care of our community has always been a fundamental priority and we will continue to support our community as we build a stronger Maui.”

Financial Highlights

Net interest income for the third quarter of 2023 was $120.9 million, a decrease of 2.7% from the previous quarter and a decrease of 14.6% from the same quarter of 2022. The decrease in net interest income in the third quarter of 2023 was primarily due to higher funding costs, partially offset by higher earning asset yields.

Net interest margin was 2.13% in the third quarter of 2023, a decrease of 9 basis points from the previous quarter and 47 basis points from the same quarter of 2022. The decrease in net interest margin was due to higher funding costs and increased liquidity, partially offset by higher earning asset yields.

The average yield on loans and leases was 4.34% in the third quarter of 2023, up 15 basis points from the prior quarter and up 85 basis points from the same quarter of 2022. The average yield on total earning assets was 3.72% in the third quarter of 2023, up 16 basis points from the prior quarter and up 88 basis points from the same quarter of 2022. The average cost of interest-bearing deposits was 1.95% in the third quarter of 2023, up 41 basis points from the prior quarter and up 165 basis points from the same quarter of 2022. The average cost of total deposits, including noninterest-bearing deposits, was 1.40%, up 32 basis points from the prior quarter and up 120 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 $50.3 million in the third quarter of 2023, an increase of 16.4% from the previous quarter and an increase of 64.2% 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. Noninterest income in the second quarter of 2023 included $1.5 million from the sale of a low-income housing tax credit investment. Noninterest income in the third quarter of 2022 included a one-time pre-tax charge of $6.9 million related to our agreement to sell assets that terminated certain leveraged leases and a negative $0.9 million adjustment related to a change in the Visa Class B conversion ratio. Adjusted for these items, noninterest income in the third quarter of 2023 was $41.0 million, down 1.6% from adjusted noninterest income in the previous quarter, and up 6.6% from adjusted noninterest income in the same period in 2022.

Noninterest expense was $105.6 million in the third quarter of 2023, an increase of 1.5% from the previous quarter and a decrease of 0.1% from the same quarter of 2022. 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. Noninterest expense in the third quarter of 2022 included $1.8 million in separation expenses. Adjusted noninterest expense in the third quarter of 2023 was $103.1 million, down 0.9% from the previous quarter and down 0.8% from adjusted noninterest expense in the same period in 2022.

The effective tax rate for the third quarter of 2023 was 24.76% compared with 24.57% in the previous quarter and 20.68% during the same quarter of 2022. The increase in the effective tax rate on a linked quarter basis was mainly due to a decrease in benefits from tax credit investments from the second quarter. The year over year increase was primarily due to tax benefits in the third quarter of 2022 related to the aforementioned agreement to sell assets that terminated certain leveraged leases.

Asset Quality

The Company’s overall asset quality remained strong during the third quarter of 2023. Provision for credit losses for the third quarter of 2023 was $2.0 million compared with $2.5 million in the previous quarter. The Company had no provision for credit loss in the third quarter of 2022.

Total non-performing assets were $11.5 million at September 30, 2023, flat from June 30, 2023 and down $2.3 million from September 30, 2022. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.08% at the end of the quarter, flat from the end of the prior quarter and a decrease of 2 basis points from the same quarter of 2022.

Net loan and lease charge-offs during the third quarter of 2023 were $2.0 million or 6 basis points annualized of total average loans and leases outstanding. Net loan and lease charge-offs for the third quarter of 2023 were comprised of charge-offs of $3.6 million partially offset by recoveries of $1.6 million. Compared to the prior quarter, net loan and lease charge-offs increased by $0.7 million or 2 basis points annualized on total average loans and leases outstanding. Compared to the same quarter of 2022, net loan and lease charge-offs increased by $0.9 million or 3 basis points annualized on total average loans and leases outstanding.

The allowance for credit losses on loans and leases was $145.3 million at September 30, 2023, a decrease of $0.1 million from June 30, 2023 and a decrease of $1.2 million from September 30, 2022. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.04% at the end of the quarter, flat from the end of the prior quarter and down 6 basis points from the same quarter of 2022.

Balance Sheet

Total assets were $23.5 billion at September 30, 2023, a decrease of 5.6% from June 30, 2023 and an increase of 1.8% from September 30, 2022. The decrease from the prior quarter was primarily due to a decrease in funds sold. The increase from the same period in 2022 was primarily due to an increase in our loans and leases.

Total funds sold and cash and due from banks was $0.6 billion at September 30, 2023, a decrease of $1.0 billion from June 30, 2023 and flat from September 30, 2022. The decrease was primarily due to termination of $1.8 billion of wholesale funding during the quarter, including Federal Home Loan Bank advances and private repurchase agreements.

The investment securities portfolio was $7.5 billion at September 30, 2023, a decrease of 5.0% from June 30, 2023 and a decrease of 5.2% from September 30, 2022. These decreases were due to sales of $159.1 million of investment securities during the quarter 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 $13.9 billion at September 30, 2023, flat from June 30, 2023 and an increase of 4.5% from September 30, 2022. Total commercial loans were $5.7 billion at September 30, 2023, an increase of 1.2% from the prior quarter and an increase of 7.3% from the same quarter of 2022. The increase from the same period in 2022 was primarily due to increases in our commercial mortgage and commercial and industrial portfolios. Total consumer loans were $8.2 billion as of September 30, 2023, a decrease of 0.8% from the prior quarter and an increase of 2.7% from the same period in 2022. The increase from the same period in 2022 was primarily driven by increases in our residential mortgage and home equity portfolios.

Total deposits were $20.8 billion at September 30, 2023, an increase of 1.4% from June 30, 2023 and a decrease of 0.4% from September 30, 2022. Noninterest-bearing deposits made up 27% of total deposit balances as of September 30, 2023, down from 29% as of June 30, 2023, and down from 35% as of September 30, 2022. Average deposits were $20.5 billion for the third quarter of 2023, up 2.4% from $20.0 billion in the prior quarter, and down 1.8% from $20.9 billion in the third quarter of 2022. As of September 30, 2023, insured and uninsured but collateralized deposits represent 58% of total deposit balances, down from 61% as of June 30, 2023, and up from 56% as of September 30, 2022. As of September 30, 2023, our readily available liquidity of $9.6 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.

The Tier 1 Capital Ratio was 12.53% at September 30, 2023 compared with 12.21% at June 30, 2023 and 12.72% at September 30, 2022. The Tier 1 Leverage Ratio was 7.22% at September 30, 2023, up 1 basis point from 7.21% at June 30, 2023 and down 6 basis points from 7.28% at September 30, 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 risk-weighted assets. The decreases from the same period in 2022 were due to an increase in risk-weighted assets and average total assets, as a result of loan growth over the period.

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

The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on December 14, 2023 to shareholders of record at the close of business on November 30, 2023.

On October 5, 2023, 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 November 1, 2023 to shareholders of record of the preferred stock as of the close of business on October 17, 2023.

Conference Call Information

The Company will review its third quarter financial results today at 8:00 a.m. Hawai‘i Time (2:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawai‘i Corporation's website, www.boh.com. The webcast can be accessed via the link: https://register.vevent.com/register/BId0e4643fbbd64cdfae5f15202d1ffbba. A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawai‘i Time on Monday, October 23, 2023. 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, 2022 and its Form 10-Q for the fiscal quarter ended March 31, 2023 and June 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.

Bank of Hawai‘i Corporation and Subsidiaries
Financial Highlights													Table 1
	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share amounts)	2023			2023			2022			2023			2022
For the Period:
Operating Results
Net Interest Income	$	120,937		$	124,348		$	141,655		$	381,240		$	399,820
Provision for Credit Losses		2,000			2,500			-			6,500			(8,000	)
Total Noninterest Income		50,334			43,255			30,660			134,326			116,369
Total Noninterest Expense		105,601			104,036			105,749			321,556			312,562
Pre-Provision Net Revenue		65,670			63,567			66,566			194,010			203,627
Net Income		47,903			46,061			52,801			140,806			164,497
Net Income Available to Common Shareholders		45,934			44,092			50,832			134,899			158,590
Basic Earnings Per Common Share		1.17			1.12			1.28			3.44			4.00
Diluted Earnings Per Common Share		1.17			1.12			1.28			3.42			3.98
Dividends Declared Per Common Share		0.70			0.70			0.70			2.10			2.10

Performance Ratios
Return on Average Assets		0.78	%		0.77	%		0.91	%		0.78	%		0.96	%
Return on Average Shareholders' Equity		13.92			13.55			15.31			13.91			15.25
Return on Average Common Equity		15.38			14.95			16.98			15.37			16.81
Efficiency Ratio ¹		61.66			62.07			61.37			62.37			60.55
Net Interest Margin ²		2.13			2.22			2.60			2.27			2.47
Dividend Payout Ratio ³		59.83			62.50			54.69			61.05			52.50
Average Shareholders' Equity to Average Assets		5.60			5.65			5.91			5.61			6.28

Average Balances
Average Loans and Leases	$	13,903,214		$	13,876,754		$	13,126,717		$	13,833,164		$	12,709,045
Average Assets		24,387,421			24,114,443			23,135,820			24,124,360			22,959,246
Average Deposits		20,492,082			20,018,601			20,863,681			20,314,079			20,621,310
Average Shareholders' Equity		1,365,143			1,363,059			1,367,946			1,353,815			1,441,706

Per Share of Common Stock
Book Value	$	29.78		$	29.66		$	27.55		$	29.78		$	27.55
Tangible Book Value		28.99			28.87			26.76			28.99			26.76
Market Value
Closing		49.69			41.23			76.12			49.69			76.12
High		58.63			52.37			85.45			81.73			92.38
Low		39.02			30.83			70.89			30.83			70.89

				September 30,			June 30,			December 31,			September 30,
				2023			2023			2022			2022
As of Period End:
Balance Sheet Totals
Loans and Leases				$	13,919,491		$	13,914,889		$	13,646,420		$	13,321,606
Total Assets					23,549,785			24,947,936			23,606,877			23,134,040
Total Deposits					20,802,309			20,508,615			20,615,696			20,888,773
Other Debt					560,217			1,760,243			410,294			10,319
Total Shareholders' Equity					1,363,840			1,358,279			1,316,995			1,282,384

Asset Quality
Non-Performing Assets				$	11,519		$	11,477		$	12,647		$	13,868
Allowance for Credit Losses - Loans and Leases					145,263			145,367			144,439			146,436
Allowance to Loans and Leases Outstanding ⁴					1.04	%		1.04	%		1.06	%		1.10	%

Capital Ratios ⁵
Common Equity Tier 1 Capital Ratio					11.29	%		11.00	%		10.92	%		11.42	%
Tier 1 Capital Ratio					12.53			12.21			12.15			12.72
Total Capital Ratio					13.56			13.24			13.17			13.82
Tier 1 Leverage Ratio					7.22			7.21			7.37			7.28
Total Shareholders' Equity to Total Assets					5.79			5.44			5.58			5.54
Tangible Common Equity to Tangible Assets ⁶					4.90			4.60			4.69			4.64
Tangible Common Equity to Risk-Weighted Assets ⁶					8.10			7.97			7.76			7.97

Non-Financial Data
Full-Time Equivalent Employees					1,919			2,025			2,076			2,115
Branches					51			51			51			51
ATMs					320			320			320			316

¹		Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
²		Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
³		Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.
⁴		The numerator comprises the Allowance for Credit Losses - Loans and Leases.
⁵		Regulatory capital ratios as of September 30, 2023 are preliminary.
⁶		Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures.
		Tangible common equity is defined by the Company as common shareholders' equity minus goodwill.
		See Table 2 "Reconciliation of Non-GAAP Financial Measures".

Bank of Hawai‘i Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures										Table 2
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands)	2023			2023			2022			2022

Total Shareholders' Equity	$	1,363,840		$	1,358,279		$	1,316,995		$	1,282,384
Less: Preferred Stock		180,000			180,000			180,000			180,000
Goodwill		31,517			31,517			31,517			31,517
Tangible Common Equity	$	1,152,323		$	1,146,762		$	1,105,478		$	1,070,867

Total Assets	$	23,549,785		$	24,947,936		$	23,606,877		$	23,134,040
Less: Goodwill		31,517			31,517			31,517			31,517
Tangible Assets	$	23,518,268		$	24,916,419		$	23,575,360		$	23,102,523

Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements ¹	$	14,222,825		$	14,391,943		$	14,238,798		$	13,428,188

Total Shareholders' Equity to Total Assets		5.79	%		5.44	%		5.58	%		5.54	%
Tangible Common Equity to Tangible Assets (Non-GAAP)		4.90	%		4.60	%		4.69	%		4.64	%

Tier 1 Capital Ratio ¹		12.53	%		12.21	%		12.15	%		12.72	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) ¹		8.10	%		7.97	%		7.76	%		7.97	%

Regulatory capital ratios as of September 30, 2023 are preliminary.

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Income													Table 3
	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share amounts)	2023			2023			2022			2023			2022
Interest Income
Interest and Fees on Loans and Leases	$	151,245		$	144,541		$	115,013		$	432,287		$	311,115
Income on Investment Securities
Available-for-Sale		23,552			23,301			16,995			70,746			52,079
Held-to-Maturity		22,838			23,375			20,243			70,161			57,782
Deposits		18			18			10			63			19
Funds Sold		12,828			6,395			2,335			22,589			3,181
Other		1,464			2,121			322			4,182			877
Total Interest Income		211,945			199,751			154,918			600,028			425,053
Interest Expense
Deposits		72,153			53,779			10,296			163,726			16,184
Securities Sold Under Agreements to Repurchase		4,034			5,436			2,745			14,847			8,311
Funds Purchased		-			184			40			888			99
Short-Term Borrowings		-			2,510			-			5,713			92
Other Debt		14,821			13,494			182			33,614			547
Total Interest Expense		91,008			75,403			13,263			218,788			25,233
Net Interest Income		120,937			124,348			141,655			381,240			399,820
Provision for Credit Losses		2,000			2,500			-			6,500			(8,000	)
Net Interest Income After Provision for Credit Losses		118,937			121,848			141,655			374,740			407,820
Noninterest Income
Trust and Asset Management		10,548			11,215			10,418			32,453			33,151
Mortgage Banking		1,059			1,176			1,002			3,239			4,989
Service Charges on Deposit Accounts		7,843			7,587			7,526			23,167			22,107
Fees, Exchange, and Other Service Charges		13,824			14,150			13,863			41,782			41,008
Investment Securities Losses, Net		(6,734	)		(1,310	)		(2,147	)		(9,836	)		(4,987	)
Annuity and Insurance		1,156			1,038			1,034			3,465			2,695
Bank-Owned Life Insurance		2,749			2,876			2,486			8,467			7,493
Other		19,889			6,523			(3,522	)		31,589			9,913
Total Noninterest Income		50,334			43,255			30,660			134,326			116,369
Noninterest Expense
Salaries and Benefits		58,825			56,175			59,938			180,088			177,631
Net Occupancy		10,327			9,991			10,186			30,190			29,942
Net Equipment		9,477			10,573			9,736			30,425			28,432
Data Processing		4,706			4,599			4,616			13,888			13,783
Professional Fees		3,846			4,651			3,799			12,380			10,599
FDIC Insurance		3,361			3,173			1,680			9,768			4,772
Other		15,059			14,874			15,794			44,817			47,403
Total Noninterest Expense		105,601			104,036			105,749			321,556			312,562
Income Before Provision for Income Taxes		63,670			61,067			66,566			187,510			211,627
Provision for Income Taxes		15,767			15,006			13,765			46,704			47,130
Net Income	$	47,903		$	46,061		$	52,801		$	140,806		$	164,497
Preferred Stock Dividends		1,969			1,969			1,969			5,908			5,908
Net Income Available to Common Shareholders	$	45,934		$	44,092		$	50,832		$	134,898		$	158,589
Basic Earnings Per Common Share	$	1.17		$	1.12		$	1.28		$	3.44		$	4.00
Diluted Earnings Per Common Share	$	1.17		$	1.12		$	1.28		$	3.42		$	3.98
Dividends Declared Per Common Share	$	0.70		$	0.70		$	0.70		$	2.10		$	2.10
Basic Weighted Average Common Shares		39,274,626			39,241,559			39,567,047			39,264,450			39,670,409
Diluted Weighted Average Common Shares		39,420,531			39,317,521			39,758,209			39,392,433			39,848,795

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)													Table 4
	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands)	2023			2023			2022			2023			2022
Net Income	$	47,903		$	46,061		$	52,801		$	140,806		$	164,497
Other Comprehensive Loss, Net of Tax:
Net Unrealized Losses on Investment Securities		(18,264	)		(18,217	)		(79,600	)		(7,205	)		(382,371	)
Defined Benefit Plans		84			84			354			252			1,059
Other Comprehensive Loss		(18,180	)		(18,133	)		(79,246	)		(6,953	)		(381,312	)
Comprehensive Income (Loss)	$	29,723		$	27,928		$	(26,445	)	$	133,853		$	(216,815	)

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands)	2023			2023			2022			2022
Assets
Interest-Bearing Deposits in Other Banks	$	4,676		$	2,261		$	3,724		$	5,429
Funds Sold		386,086			1,273,109			81,364			402,714
Investment Securities
Available-for-Sale		2,387,324			2,666,723			2,844,823			2,424,608
Held-to-Maturity (Fair Value of $4,104,469; $4,411,003; $4,615,393; and $4,668,074)		5,088,013			5,202,698			5,414,139			5,461,160
Loans Held for Sale		1,450			3,359			1,035			418
Loans and Leases		13,919,491			13,914,889			13,646,420			13,321,606
Allowance for Credit Losses		(145,263	)		(145,367	)		(144,439	)		(146,436	)
Net Loans and Leases		13,774,228			13,769,522			13,501,981			13,175,170
Total Earning Assets		21,641,777			22,917,672			21,847,066			21,469,499
Cash and Due from Banks		261,464			398,072			316,679			247,506
Premises and Equipment, Net		196,094			200,297			206,777			208,251
Operating Lease Right-of-Use Assets		86,896			89,286			92,307			94,613
Accrued Interest Receivable		65,541			64,720			61,002			50,143
Foreclosed Real Estate		1,040			1,040			1,040			1,040
Mortgage Servicing Rights		21,273			21,626			22,619			23,104
Goodwill		31,517			31,517			31,517			31,517
Bank-Owned Life Insurance		458,260			456,889			453,882			451,407
Other Assets		785,923			766,817			573,988			556,960
Total Assets	$	23,549,785		$	24,947,936		$	23,606,877		$	23,134,040

Liabilities
Deposits
Noninterest-Bearing Demand	$	5,687,442		$	5,968,344		$	6,714,982		$	7,300,157
Interest-Bearing Demand		3,925,469			4,119,166			4,232,567			4,399,625
Savings		8,530,384			7,756,426			7,962,410			7,954,006
Time		2,659,014			2,664,679			1,705,737			1,234,985
Total Deposits		20,802,309			20,508,615			20,615,696			20,888,773
Securities Sold Under Agreements to Repurchase		150,490			725,490			725,490			425,490
Other Debt		560,217			1,760,243			410,294			10,319
Operating Lease Liabilities		95,453			97,768			100,526			102,705
Retirement Benefits Payable		26,074			26,434			26,991			37,053
Accrued Interest Payable		33,434			26,737			9,698			3,405
Taxes Payable		6,965			132			7,104			13,527
Other Liabilities		511,003			444,238			394,083			370,384
Total Liabilities		22,185,945			23,589,657			22,289,882			21,851,656
Shareholders' Equity
Preferred Stock ($.01 par value; authorized 180,000 shares;
issued / outstanding: September 30, 2023; June 30, 2023; December 31, 2022;
and September 30, 2022 - 180,000)		180,000			180,000			180,000			180,000
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: September 30, 2023 - 58,767,820 / 39,748,700;
June 30, 2023 - 58,771,036 / 39,725,348; December 31, 2022 - 58,733,625 / 39,835,750;
and September 30, 2022 - 58,728,796 / 40,011,473)		583			583			582			582
Capital Surplus		632,425			628,202			620,578			615,985
Accumulated Other Comprehensive Loss		(441,611	)		(423,431	)		(434,658	)		(447,694	)
Retained Earnings		2,108,702			2,091,289			2,055,912			2,024,641
Treasury Stock, at Cost (Shares: September 30, 2023 - 19,019,120; June 30, 2023 - 19,045,688;
December 31, 2022 - 18,897,875; and September 30, 2022 - 18,717,323)		(1,116,259	)		(1,118,364	)		(1,105,419	)		(1,091,130	)
Total Shareholders' Equity		1,363,840			1,358,279			1,316,995			1,282,384
Total Liabilities and Shareholders' Equity	$	23,549,785		$	24,947,936		$	23,606,877		$	23,134,040

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																					Table 6
												Accumulated
	Preferred			Common								Other
	Shares	Preferred		Shares			Common		Capital			Comprehensive			Retained			Treasury
(dollars in thousands)	Outstanding	Stock		Outstanding			Stock		Surplus			Loss			Earnings			Stock			Total
Balance as of December 31, 2022	180,000	$	180,000		39,835,750		$	582	$	620,578		$	(434,658	)	$	2,055,912		$	(1,105,419	)	$	1,316,995
Net Income	-		-		-			-		-			-			140,806			-			140,806
Other Comprehensive Loss	-		-		-			-		-			(6,953	)		-			-			(6,953	)
Share-Based Compensation	-		-		-			-		11,979			-			-			-			11,979
Common Stock Issued under Purchase and
Equity Compensation Plans	-		-		121,040			1		(132	)		-			1,716			3,216			4,801
Common Stock Repurchased	-		-		(208,090	)		-		-			-			-			(14,056	)		(14,056	)
Cash Dividends Declared Common Stock ($2.10 per share)	-		-		-			-		-			-			(83,824	)		-			(83,824	)
Cash Dividends Declared Preferred Stock	-		-		-			-		-			-			(5,908	)		-			(5,908	)
Balance as of September 30, 2023	180,000	$	180,000		39,748,700		$	583	$	632,425		$	(441,611	)	$	2,108,702		$	(1,116,259	)	$	1,363,840

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	-		-		-			-		-			-			164,497			-			164,497
Other Comprehensive Loss	-		-		-			-		-			(381,312	)		-			-			(381,312	)
Share-Based Compensation	-		-		-			-		11,947			-			-			-			11,947
Common Stock Issued under Purchase and
Equity Compensation Plans	-		-		247,966			1		1,530			-			256			3,889			5,676
Common Stock Repurchased	-		-		(489,686	)		-		-			-			-			(39,548	)		(39,548	)
Cash Dividends Declared Common Stock ($2.10 per share)	-		-		-			-		-			-			(84,579	)		-			(84,579	)
Cash Dividends Declared Preferred Stock	-		-		-			-		-			-			(5,908	)		-			(5,908	)
Balance as of September 30, 2022	180,000	$	180,000		40,011,473		$	582	$	615,985		$	(447,694	)	$	2,024,641		$	(1,091,130	)	$	1,282,384

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
	September 30, 2023						June 30, 2023						September 30, 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	$	2.9	$	-	2.40	%	$	5.1	$	-	1.48	%	$	2.9	$	-	1.32	%
Funds Sold		944.8		12.8	5.31			500.1		6.4	5.06			411.8		2.3	2.22
Investment Securities
Available-for-Sale
Taxable		2,605.4		23.5	3.60			2,741.1		23.2	3.39			3,481.9		17.0	1.95
Non-Taxable		3.5		-	3.21			9.6		0.1	4.40			2.5		-	1.56
Held-to-Maturity
Taxable		5,118.6		22.7	1.77			5,231.3		23.2	1.78			4,645.7		20.1	1.73
Non-Taxable		35.0		0.2	2.10			35.2		0.2	2.10			35.6		0.2	2.10
Total Investment Securities		7,762.5		46.4	2.39			8,017.2		46.7	2.33			8,165.7		37.3	1.82
Loans Held for Sale		3.8		0.1	6.28			2.7		-	5.50			4.3		0.1	4.46
Loans and Leases ³
Commercial and Industrial		1,515.0		18.9	4.96			1,456.1		17.5	4.82			1,353.8		12.5	3.66
Paycheck Protection Program		13.1		-	1.32			14.5		-	1.30			28.0		0.2	3.02
Commercial Mortgage		3,792.6		51.1	5.35			3,814.9		49.3	5.19			3,530.9		33.3	3.74
Construction		241.9		3.7	6.09			246.8		3.5	5.70			233.0		2.8	4.81
Commercial Lease Financing		62.6		0.3	1.84			65.4		0.3	1.67			89.1		0.4	1.58
Residential Mortgage		4,715.3		42.8	3.62			4,704.0		41.2	3.50			4,526.6		37.4	3.30
Home Equity		2,283.5		20.1	3.49			2,272.3		19.0	3.35			2,144.8		16.4	3.04
Automobile		868.0		8.2	3.75			879.3		7.7	3.53			795.5		6.4	3.19
Other ⁴		411.2		6.5	6.24			423.5		6.4	6.04			425.0		5.9	5.48
Total Loans and Leases		13,903.2		151.6	4.34			13,876.8		144.9	4.19			13,126.7		115.3	3.49
Other		91.6		1.5	6.40			94.8		2.2	8.94			36.9		0.3	3.49
Total Earning Assets		22,708.8		212.4	3.72			22,496.7		200.2	3.56			21,748.3		155.3	2.84
Cash and Due from Banks		289.8						316.6						233.5
Other Assets		1,388.8						1,301.1						1,154.0
Total Assets	$	24,387.4					$	24,114.4					$	23,135.8

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	3,929.7		6.6	0.67		$	4,037.4		7.5	0.75		$	4,286.0		1.4	0.13
Savings		7,952.6		39.1	1.95			7,667.6		26.6	1.39			7,962.0		6.6	0.33
Time		2,767.8		26.5	3.79			2,296.1		19.7	3.44			1,146.9		2.3	0.79
Total Interest-Bearing Deposits		14,650.1		72.2	1.95			14,001.1		53.8	1.54			13,394.9		10.3	0.30
Funds Purchased		-		-	-			14.6		0.2	5.00			4.9		0.1	3.17
Short-Term Borrowings		-		-	-			195.2		2.5	5.09			-		-	-
Securities Sold Under Agreements to Repurchase		528.5		4.0	2.99			725.5		5.4	2.96			425.5		2.7	2.52
Other Debt		1,365.7		14.8	4.31			1,255.8		13.5	4.31			10.3		0.2	7.05
Total Interest-Bearing Liabilities		16,544.3		91.0	2.18			16,192.2		75.4	1.87			13,835.6		13.3	0.38
Net Interest Income			$	121.4					$	124.8					$	142.0
Interest Rate Spread					1.54	%					1.69	%					2.46	%
Net Interest Margin					2.13	%					2.22	%					2.60	%
Noninterest-Bearing Demand Deposits		5,842.0						6,017.5						7,468.8
Other Liabilities		636.0						541.6						463.5
Shareholders' Equity		1,365.1						1,363.1						1,367.9
Total Liabilities and Shareholders' Equity	$	24,387.4					$	24,114.4					$	23,135.8

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 $437,000, $471,000, and $343,000 for the three months ended September 30, 2023, June 30, 2023, and September 30, 2022, respectively.
³		Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
⁴		Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis ¹									Table 7b
	Nine Months Ended						Nine Months Ended
	September 30, 2023						September 30, 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	$	3.2	$	0.1	2.60	%	$	3.3	$	-	0.76	%
Funds Sold		582.7		22.6	5.11			308.6		3.2	1.36
Investment Securities
Available-for-Sale
Taxable		2,721.5		70.6	3.46			3,998.2		52.0	1.74
Non-Taxable		7.6		0.2	4.22			2.8		-	1.84
Held-to-Maturity
Taxable		5,227.8		69.7	1.78			4,530.4		57.4	1.69
Non-Taxable		35.2		0.6	2.10			35.7		0.6	2.10
Total Investment Securities		7,992.1		141.1	2.36			8,567.1		110.0	1.71
Loans Held for Sale		2.7		0.1	5.82			8.1		0.2	3.43
Loans and Leases ³
Commercial and Industrial		1,461.2		52.7	4.82			1,339.0		31.4	3.13
Paycheck Protection Program		14.8		0.2	1.70			51.7		2.5	6.59
Commercial Mortgage		3,781.7		145.6	5.15			3,350.3		81.3	3.25
Construction		256.2		11.1	5.81			227.7		7.3	4.30
Commercial Lease Financing		64.9		0.5	1.11			94.0		1.0	1.49
Residential Mortgage		4,695.4		123.8	3.51			4,439.1		108.6	3.26
Home Equity		2,265.2		57.3	3.38			2,026.5		44.1	2.91
Automobile		873.0		23.2	3.55			764.2		18.4	3.21
Other ⁴		420.8		19.0	6.04			416.5		17.0	5.44
Total Loans and Leases		13,833.2		433.4	4.19			12,709.0		311.6	3.27
Other		84.6		4.1	6.59			37.2		0.9	3.14
Total Earning Assets		22,498.5		601.4	3.57			21,633.3		425.9	2.63
Cash and Due from Banks		308.4						235.0
Other Assets		1,317.5						1,090.9
Total Assets	$	24,124.4					$	22,959.2

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	4,060.0		19.3	0.64		$	4,459.9		2.6	0.08
Savings		7,876.1		86.3	1.46			7,733.3		9.5	0.16
Time		2,288.2		58.1	3.40			1,023.6		4.1	0.53
Total Interest-Bearing Deposits		14,224.3		163.7	1.54			13,216.8		16.2	0.16
Funds Purchased		24.8		0.9	4.72			12.4		0.1	1.05
Short-Term Borrowings		152.4		5.7	4.94			11.5		0.1	1.06
Securities Sold Under Agreements to Repurchase		659.1		14.8	2.97			441.1		8.3	2.48
Other Debt		1,043.6		33.7	4.31			10.3		0.6	7.05
Total Interest-Bearing Liabilities		16,104.2		218.8	1.81			13,692.1		25.3	0.25
Net Interest Income			$	382.6					$	400.6
Interest Rate Spread					1.76	%					2.38	%
Net Interest Margin					2.27	%					2.47	%
Noninterest-Bearing Demand Deposits		6,089.8						7,404.5
Other Liabilities		576.6						420.9
Shareholders' Equity		1,353.8						1,441.7
Total Liabilities and Shareholders' Equity	$	24,124.4					$	22,959.2

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 $1,403,000 and $818,000 for the nine months ended September 30, 2023 and September 30, 2022, respectively.
³		Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
⁴		Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended September 30, 2023
	Compared to June 30, 2023
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	6.1		$	0.3		$	6.4
Investment Securities
Available-for-Sale
Taxable		(1.1	)		1.4			0.3
Non-Taxable		(0.1	)		-			(0.1	)
Held-to-Maturity
Taxable		(0.5	)		-			(0.5	)
Total Investment Securities		(1.7	)		1.4			(0.3	)
Loans Held for Sale		0.1			-			0.1
Loans and Leases
Commercial and Industrial		0.8			0.6			1.4
Commercial Mortgage		(0.2	)		2.0			1.8
Construction		(0.1	)		0.3			0.2
Residential Mortgage		0.2			1.4			1.6
Home Equity		0.1			1.0			1.1
Automobile		(0.1	)		0.6			0.5
Other ²		(0.2	)		0.3			0.1
Total Loans and Leases		0.5			6.2			6.7
Other		(0.1	)		(0.6	)		(0.7	)
Total Change in Interest Income		4.9			7.3			12.2

Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.2	)		(0.7	)		(0.9	)
Savings		1.1			11.4			12.5
Time		4.5			2.3			6.8
Total Interest-Bearing Deposits		5.4			13.0			18.4
Funds Purchased		(0.2	)		-			(0.2	)
Short-Term Borrowings		(2.5	)		-			(2.5	)
Securities Sold Under Agreements to Repurchase		(1.4	)		-			(1.4	)
Other Debt		1.3			-			1.3
Total Change in Interest Expense		2.6			13.0			15.6

Change in Net Interest Income	$	2.3		$	(5.7	)	$	(3.4	)

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 September 30, 2023
	Compared to September 30, 2022
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	5.1		$	5.4		$	10.5
Investment Securities
Available-for-Sale
Taxable		(5.1	)		11.6			6.5
Held-to-Maturity
Taxable		2.1			0.5			2.6
Total Investment Securities		(3.0	)		12.1			9.1
Loans and Leases
Commercial and Industrial		1.6			4.8			6.4
Paycheck Protection Program		(0.1	)		(0.1	)		(0.2	)
Commercial Mortgage		2.6			15.2			17.8
Construction		0.1			0.8			0.9
Commercial Lease Financing		(0.2	)		0.1			(0.1	)
Residential Mortgage		1.7			3.7			5.4
Home Equity		1.2			2.5			3.7
Automobile		0.6			1.2			1.8
Other ²		(0.2	)		0.8			0.6
Total Loans and Leases		7.3			29.0			36.3
Other		0.7			0.5			1.2
Total Change in Interest Income		10.1			47.0			57.1

Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.1	)		5.3			5.2
Savings		-			32.5			32.5
Time		6.6			17.6			24.2
Total Interest-Bearing Deposits		6.5			55.4			61.9
Funds Purchased		(0.1	)		-			(0.1	)
Securities Sold Under Agreements to Repurchase		0.7			0.6			1.3
Other Debt		14.7			(0.1	)		14.6
Total Change in Interest Expense		21.8			55.9			77.7

Change in Net Interest Income	$	(11.7	)	$	(8.9	)	$	(20.6	)

¹		The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
²		Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8c
	Nine Months Ended September 30, 2023
	Compared to September 30, 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		4.7			14.7			19.4
Investment Securities
Available-for-Sale
Taxable		(20.6	)		39.2			18.6
Non-Taxable		0.1			0.1			0.2
Held-to-Maturity
Taxable		9.2			3.1			12.3
Total Investment Securities		(11.3	)		42.4			31.1
Loans Held for Sale		(0.2	)		0.1			(0.1	)
Loans and Leases
Commercial and Industrial		3.1			18.2			21.3
Paycheck Protection Program		(1.2	)		(1.1	)		(2.3	)
Commercial Mortgage		11.6			52.7			64.3
Construction		1.0			2.8			3.8
Commercial Lease Financing		(0.4	)		(0.1	)		(0.5	)
Residential Mortgage		6.5			8.7			15.2
Home Equity		5.6			7.6			13.2
Automobile		2.7			2.1			4.8
Other²		0.1			1.9			2.0
Total Loans and Leases		29.0			92.8			121.8
Other		1.7			1.5			3.2
Total Change in Interest Income		24.0			151.5			175.5

Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.3	)		17.0			16.7
Savings		0.2			76.6			76.8
Time		10.0			44.0			54.0
Total Interest-Bearing Deposits		9.9			137.6			147.5
Funds Purchased		0.2			0.6			0.8
Short-Term Borrowings		4.3			1.3			5.6
Securities Sold Under Agreements to Repurchase		4.7			1.8			6.5
Other Debt		33.4			(0.3	)		33.1
Total Change in Interest Expense		52.5			141.0			193.5

Change in Net Interest Income	$	(28.5	)	$	10.5		$	(18.0	)

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
Salaries and Benefits										Table 9
	Three Months Ended							Nine Months Ended
	September 30,		June 30,			September 30,		September 30,
(dollars in thousands)	2023		2023			2022		2023		2022
Salaries	$	39,426	$	37,962		$	37,792	$	116,005	$	109,445
Incentive Compensation		2,956		2,984			5,885		9,937		18,069
Share-Based Compensation		4,072		4,096			3,558		11,327		11,319
Commission Expense		676		775			1,005		2,098		3,878
Retirement and Other Benefits		3,809		3,489			4,448		13,186		13,177
Payroll Taxes		2,921		3,310			2,826		12,079		10,804
Medical, Dental, and Life Insurance		2,835		3,568			2,605		10,267		8,430
Separation Expense		2,130		(9	)		1,819		5,189		2,509
Total Salaries and Benefits	$	58,825	$	56,175		$	59,938	$	180,088	$	177,631

Bank of Hawai‘i Corporation and Subsidiaries
Loan and Lease Portfolio Balances									Table 10
	September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)	2023		2023		2023		2022		2022
Commercial
Commercial and Industrial	$	1,569,572	$	1,502,676	$	1,425,916	$	1,389,066	$	1,368,966
Paycheck Protection Program		12,529		13,789		15,175		19,579		22,955
Commercial Mortgage		3,784,339		3,796,769		3,826,283		3,725,542		3,591,943
Construction		251,507		236,428		232,903		260,825		236,498
Lease Financing		61,522		62,779		65,611		69,491		73,989
Total Commercial		5,679,469		5,612,441		5,565,888		5,464,503		5,294,351
Consumer
Residential Mortgage		4,699,140		4,721,976		4,691,298		4,653,072		4,585,723
Home Equity		2,285,974		2,278,105		2,260,001		2,225,950		2,185,484
Automobile		856,113		878,767		877,979		870,396		820,640
Other ¹		398,795		423,600		429,356		432,499		435,408
Total Consumer		8,240,022		8,302,448		8,258,634		8,181,917		8,027,255
Total Loans and Leases	$	13,919,491	$	13,914,889	$	13,824,522	$	13,646,420	$	13,321,606
¹ Comprised of other revolving credit, installment, and lease financing.

Deposits
	September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)	2023		2023		2023		2022		2022
Consumer	$	10,036,261	$	10,018,931	$	10,158,833	$	10,304,335	$	10,507,946
Commercial		8,564,536		8,019,971		8,594,441		8,569,670		8,841,781
Public and Other		2,201,512		2,469,713		1,738,026		1,741,691		1,539,046
Total Deposits	$	20,802,309	$	20,508,615	$	20,491,300	$	20,615,696	$	20,888,773


Average Deposits
	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)	2023		2023		2023		2022		2022
Consumer	$	9,963,690	$	9,977,239	$	10,178,988	$	10,295,563	$	10,485,895
Commercial		8,288,891		8,138,358		8,611,960		8,588,198		9,002,432
Public and Other		2,239,501		1,903,004		1,639,934		1,457,566		1,375,354
Total Deposits	$	20,492,082	$	20,018,601	$	20,430,882	$	20,341,327	$	20,863,681

Bank of Hawai‘i Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More													Table 11
	September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)	2023			2023			2023			2022			2022
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial	$	43		$	17		$	31		$	37		$	49
Commercial Mortgage		2,996			3,107			3,216			3,309			3,396
Total Commercial		3,039			3,124			3,247			3,346			3,445
Consumer
Residential Mortgage		3,706			3,504			4,199			4,239			4,945
Home Equity		3,734			3,809			3,638			4,022			4,438
Total Consumer		7,440			7,313			7,837			8,261			9,383
Total Non-Accrual Loans and Leases		10,479			10,437			11,084			11,607			12,828
Foreclosed Real Estate		1,040			1,040			1,040			1,040			1,040
Total Non-Performing Assets	$	11,519		$	11,477		$	12,124		$	12,647		$	13,868

Accruing Loans and Leases Past Due 90 Days or More
Consumer
Residential Mortgage	$	3,519		$	3,560		$	4,566		$	2,429		$	3,279
Home Equity		2,172			2,022			1,723			1,673			1,061
Automobile		393			577			598			589			467
Other ¹		643			633			632			683			513
Total Consumer		6,727			6,792			7,519			5,374			5,320
Total Accruing Loans and Leases Past Due 90 Days or More	$	6,727		$	6,792		$	7,519		$	5,374		$	5,320
Total Loans and Leases	$	13,919,491		$	13,914,889		$	13,824,522		$	13,646,420		$	13,321,606

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases		0.08	%		0.08	%		0.08	%		0.09	%		0.10	%

Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate		0.08	%		0.08	%		0.09	%		0.09	%		0.10	%

Ratio of Non-Performing Assets to Total Assets		0.05	%		0.04	%		0.05	%		0.05	%		0.06	%

Ratio of Commercial Non-Performing Assets to Total Commercial Loans
and Leases and Commercial Foreclosed Real Estate		0.05	%		0.06	%		0.06	%		0.06	%		0.07	%

Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate		0.10	%		0.10	%		0.11	%		0.11	%		0.13	%

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	%		0.14	%		0.13	%		0.14	%

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter	$	11,477		$	12,124		$	12,647		$	13,868		$	15,493
Additions		1,318			1,116			552			704			489
Reductions
Payments		(1,017	)		(226	)		(778	)		(1,605	)		(706	)
Return to Accrual Status		(259	)		(1,527	)		(297	)		(301	)		(116	)
Sales of Foreclosed Real Estate		-			-			-			-			(1,292	)
Charge-offs / Write-downs		-			(10	)		-			(19	)		-
Total Reductions		(1,276	)		(1,763	)		(1,075	)		(1,925	)		(2,114	)
Balance at End of Quarter	$	11,519		$	11,477		$	12,124		$	12,647		$	13,868

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									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands)	2023			2023			2022			2023			2022
Balance at Beginning of Period	$	151,702		$	150,579		$	154,098		$	151,247		$	164,297

Loans and Leases Charged-Off
Commercial
Commercial and Industrial		(294	)		(203	)		(147	)		(758	)		(729	)
Consumer
Residential Mortgage		-			(6	)		-			(6	)		(80	)
Home Equity		(13	)		(5	)		-			(68	)		(90	)
Automobile		(1,353	)		(1,293	)		(794	)		(4,309	)		(3,481	)
Other ¹		(1,957	)		(2,004	)		(1,924	)		(6,296	)		(5,739	)
Total Loans and Leases Charged-Off		(3,617	)		(3,511	)		(2,865	)		(11,437	)		(10,119	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial		72			103			45			225			465
Consumer
Residential Mortgage		69			58			156			188			1,130
Home Equity		131			578			367			893			1,298
Automobile		721			777			441			2,170			1,864
Other ¹		575			618			709			1,867			2,098
Total Recoveries on Loans and Leases Previously Charged-Off		1,568			2,134			1,718			5,343			6,855
Net Charged-Off - Loans and Leases		(2,049	)		(1,377	)		(1,147	)		(6,094	)		(3,264	)
Net Charged-Off - Accrued Interest Receivable
Provision for Credit Losses:
Loans and Leases		1,945			3,167			(929	)		6,918			(8,121	)
Accrued Interest Receivable		-			-			-			-			(367	)
Unfunded Commitments		55			(667	)		905			(418	)		429
Total Provision for Credit Losses		2,000			2,500			(24	)		6,500			(8,059	)
Balance at End of Period	$	151,653		$	151,702		$	152,927		$	151,653		$	152,927

Components
Allowance for Credit Losses - Loans and Leases	$	145,263		$	145,367		$	146,436		$	145,263		$	146,436
Reserve for Unfunded Commitments		6,390			6,335			6,491			6,390			6,491
Total Reserve for Credit Losses	$	151,653		$	151,702		$	152,927		$	151,653		$	152,927

Average Loans and Leases Outstanding	$	13,903,214		$	13,876,754		$	13,126,717		$	13,833,164		$	12,709,045

Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)		0.06	%		0.04	%		0.03	%		0.06	%		0.03	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding ²		1.04	%		1.04	%		1.10	%		1.04	%		1.10	%

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 September 30, 2023
Net Interest Income (Loss)	$	100,913		$	53,823		$	(33,799	)	$	120,937
Provision for Credit Losses		1,974			74			(48	)		2,000
Net Interest Income (Loss) After Provision for Credit Losses		98,939			53,749			(33,751	)		118,937
Noninterest Income		31,027			8,483			10,824			50,334
Noninterest Expense		(81,377	)		(18,937	)		(5,287	)		(105,601	)
Income (Loss) Before Income Taxes		48,589			43,295			(28,214	)		63,670
Provision for Income Taxes		(12,582	)		(10,987	)		7,802			(15,767	)
Net Income (Loss)	$	36,007		$	32,308		$	(20,412	)	$	47,903
Total Assets as of September 30, 2023	$	8,584,221		$	5,719,577		$	9,245,987		$	23,549,785

Three Months Ended September 30, 2022 ¹
Net Interest Income (Loss)	$	85,658		$	56,251		$	(254	)	$	141,655
Provision for Credit Losses		1,148			(1	)		(1,147	)		-
Net Interest Income After Provision for Credit Losses		84,510			56,252			893			141,655
Noninterest Income (Loss)		30,974			(911	)		597			30,660
Noninterest Expense		(83,408	)		(17,330	)		(5,011	)		(105,749	)
Income (Loss) Before Income Taxes		32,076			38,011			(3,521	)		66,566
Provision for Income Taxes		(8,067	)		(9,206	)		3,508			(13,765	)
Net Income (Loss)	$	24,009		$	28,805		$	(13	)	$	52,801
Total Assets as of September 30, 2022	$	8,399,068		$	5,486,330		$	9,248,642		$	23,134,040

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
Nine Months Ended September 30, 2023
Net Interest Income (Loss)	$	298,512		$	164,202		$	(81,474	)	$	381,240
Provision for Credit Losses		6,035			59			406			6,500
Net Interest Income (Loss) After Provision for Credit Losses		292,477			164,143			(81,880	)		374,740
Noninterest Income		94,126			25,072			15,128			134,326
Noninterest Expense		(247,543	)		(58,528	)		(15,485	)		(321,556	)
Income (Loss) Before Income Taxes		139,060			130,687			(82,237	)		187,510
Provision for Income Taxes		(35,838	)		(32,490	)		21,624			(46,704	)
Net Income (Loss)	$	103,222		$	98,197		$	(60,613	)	$	140,806
Total Assets as of September 30, 2023	$	8,584,221		$	5,719,577		$	9,245,987		$	23,549,785

Nine Months Ended September 30, 2022 ¹
Net Interest Income	$	232,646		$	152,394		$	14,780		$	399,820
Provision for Credit Losses		3,463			(200	)		(11,263	)		(8,000	)
Net Interest Income After Provision for Credit Losses		229,183			152,594			26,043			407,820
Noninterest Income		94,811			17,650			3,908			116,369
Noninterest Expense		(247,854	)		(53,014	)		(11,694	)		(312,562	)
Income Before Income Taxes		76,140			117,230			18,257			211,627
Provision for Income Taxes		(19,114	)		(28,654	)		638			(47,130	)
Net Income	$	57,026		$	88,576		$	18,895		$	164,497
Total Assets as of September 30, 2022	$	8,399,068		$	5,486,330		$	9,248,642		$	23,134,040

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
	September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands, except per share amounts)	2023			2023			2023			2022			2022
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	151,245		$	144,541		$	136,501		$	128,683		$	115,013
Income on Investment Securities
Available-for-Sale		23,552			23,301			23,893			18,476			16,995
Held-to-Maturity		22,838			23,375			23,948			23,708			20,243
Deposits		18			18			27			13			10
Funds Sold		12,828			6,395			3,366			1,093			2,335
Other		1,464			2,121			597			340			322
Total Interest Income		211,945			199,751			188,332			172,313			154,918
Interest Expense
Deposits		72,153			53,779			37,794			23,494			10,296
Securities Sold Under Agreements to Repurchase		4,034			5,436			5,377			4,289			2,745
Funds Purchased		-			184			704			318			40
Short-Term Borrowings		-			2,510			3,203			1,978			-
Other Debt		14,821			13,494			5,299			1,496			182
Total Interest Expense		91,008			75,403			52,377			31,575			13,263
Net Interest Income		120,937			124,348			135,955			140,738			141,655
Provision for Credit Losses		2,000			2,500			2,000			200			-
Net Interest Income After Provision for Credit Losses		118,937			121,848			133,955			140,538			141,655
Noninterest Income
Trust and Asset Management		10,548			11,215			10,690			10,652			10,418
Mortgage Banking		1,059			1,176			1,004			991			1,002
Service Charges on Deposit Accounts		7,843			7,587			7,737			7,513			7,526
Fees, Exchange, and Other Service Charges		13,824			14,150			13,808			13,906			13,863
Investment Securities Losses, Net		(6,734	)		(1,310	)		(1,792	)		(1,124	)		(2,147	)
Annuity and Insurance		1,156			1,038			1,271			1,087			1,034
Bank-Owned Life Insurance		2,749			2,876			2,842			2,475			2,486
Other		19,889			6,523			5,177			5,672			(3,522	)
Total Noninterest Income		50,334			43,255			40,737			41,172			30,660
Noninterest Expense
Salaries and Benefits		58,825			56,175			65,088			57,639			59,938
Net Occupancy		10,327			9,991			9,872			9,499			10,186
Net Equipment		9,477			10,573			10,375			9,942			9,736
Data Processing		4,706			4,599			4,583			4,579			4,616
Professional Fees		3,846			4,651			3,883			3,958			3,799
FDIC Insurance		3,361			3,173			3,234			1,774			1,680
Other		15,059			14,874			14,884			15,312			15,794
Total Noninterest Expense		105,601			104,036			111,919			102,703			105,749
Income Before Provision for Income Taxes		63,670			61,067			62,773			79,007			66,566
Provision for Income Taxes		15,767			15,006			15,931			17,700			13,765
Net Income	$	47,903		$	46,061		$	46,842		$	61,307		$	52,801
Preferred Stock Dividends		1,969			1,969			1,969			1,969			1,969
Net Income Available to Common Shareholders	$	45,934		$	44,092		$	44,873		$	59,338		$	50,832

Basic Earnings Per Common Share	$	1.17		$	1.12		$	1.14		$	1.51		$	1.28
Diluted Earnings Per Common Share	$	1.17		$	1.12		$	1.14		$	1.50		$	1.28

Balance Sheet Totals
Loans and Leases	$	13,919,491		$	13,914,889		$	13,824,522		$	13,646,420		$	13,321,606
Total Assets		23,549,785			24,947,936			23,931,977			23,606,877			23,134,040
Total Deposits		20,802,309			20,508,615			20,491,300			20,615,696			20,888,773
Total Shareholders' Equity		1,363,840			1,358,279			1,354,430			1,316,995			1,282,384

Performance Ratios
Return on Average Assets		0.78	%		0.77	%		0.80	%		1.05	%		0.91	%
Return on Average Shareholders' Equity		13.92			13.55			14.25			18.91			15.31
Return on Average Common Equity		15.38			14.95			15.79			21.28			16.98
Efficiency Ratio ¹		61.66			62.07			63.34			56.46			61.37
Net Interest Margin ²		2.13			2.22			2.47			2.60			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.

Bank of Hawai‘i Corporation and Subsidiaries
Hawaii Economic Trends													Table 15
	Eight Months Ended				Year Ended
(dollars in millions; jobs in thousands)	August 31, 2023				December 31, 2022					December 31, 2021
Hawaii Economic Trends
State General Fund Revenues¹	$	6,461.9	(3.5	)%	$	9,441.3		16.0	%	$	8,137.9		26.9	%
General Excise and Use Tax Revenue¹		3,027.8	5.9			4,263.4		18.3			3,604.3		18.6
Jobs ²		657.3				654.5					642.6

								September 30,		December 31,
								2023		2022			2021
Unemployment, seasonally adjusted³
Statewide								2.8	%		3.7	%	3.2	%
Honolulu County								2.2			3.3		3.7
Hawaii County								2.2			4.7		1.8
Maui County								6.4			4.5		2.4
Kauai County								2.0			4.7		2.7

					September 30,			December 31,
(1-year percentage change, except months of inventory)					2023			2022		2022			2022
Housing Trends (Single Family Oahu) ⁴
Median Home Price						(5.4	)%	11.6	%		19.3	%	5.2	%
Home Sales Volume (units)						(30.5	)%	(23.2	)%		17.9	%	2.3	%
Months of Inventory						2.7		2.1			0.8		1.4

					Monthly Visitor Arrivals,					Percentage Change
(in thousands, except percent change)					Not Seasonally Adjusted					from Previous Year
Tourism ⁵
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								725.5					18.2
October 31, 2022								726.1					31.8
September 30, 2022								691.8					37.1
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
October 31, 2021								550.8					618.2
September 30, 2021								504.6					2,641.0
August 31, 2021								723.0					2,995.6

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20231023382031/en/

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Bank of Hawai‘i Corporation Third Quarter 2023 Financial Results

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