SEC Filing | Bank of Hawaii Corporation

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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
	(Date of earliest event reported)		April 22, 2019

BANK OF HAWAII CORPORATION

(Exact name of registrant as specified in its charter)



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



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



(Registrant's telephone number,
including area code)			(888) 643-3888

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 (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o 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).

o Emerging growth company

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

Item 2.02. Results of Operations and Financial Condition.

On April 22, 2019, Bank of Hawaii Corporation announced its results of operations for the quarter ended March 31, 2019. 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 April 22, 2019 Press Release: Bank of Hawaii Corporation Fourth Quarter 2018 Financial Results. Any internet addresses provided in this release are for informational purposes only and are not intended to be hyperlinks. Furnished herewith.

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: April 22, 2019	Bank of Hawaii Corporation


	By:	/s/ Mark A. Rossi
		Mark A. Rossi
		Vice Chairman and Corporate Secretary

Exhibit

Bank of Hawaii Corporation First Quarter 2019 Financial Results


•	Diluted Earnings Per Share $1.43


•	Net Income $58.8 Million


•	Board of Directors Increases Dividend to $0.65 Per Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (April 22, 2019) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $1.43 for the first quarter of 2019, an increase from diluted earnings per share of $1.30 in the previous quarter and $1.28 in the same quarter last year. Net income for the first quarter of 2019 was $58.8 million, an increase of $4.9 million compared with net income of $53.9 million in the fourth quarter of 2018 and up $4.8 million from net income of $54.0 million in the first quarter of 2018.

"We were pleased with our financial performance during the first quarter of 2019," said Peter S. Ho, Chairman, President, and CEO. “We had growth in both loans and deposits, our net interest margin expanded, asset quality remained strong, and expenses were well controlled.”

The return on average assets for the first quarter of 2019 was 1.38 percent, up from 1.26 percent during the previous quarter and 1.29 percent in the same quarter last year. The return on average equity for the first quarter of 2019 was 18.81 percent, up from 17.05 percent in the fourth quarter of 2018 and 17.74 percent in the first quarter of 2018.

Financial Highlights

Net interest income, on a taxable-equivalent basis, for the first quarter of 2019 was $125.8 million, an increase of $0.6 million from net interest income of $125.2 million in the fourth quarter of 2018 and an increase of $5.5 million from net interest income of $120.3 million in the first quarter of 2018. The net interest margin was 3.12 percent for the first quarter of 2019, up 2 basis points compared with the net interest margin of 3.10 percent in the previous quarter and up 12 basis points from the net interest margin of 3.00 percent for the first quarter last year. Analyses of the changes in net interest income are included in Tables 8a and 8b.

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Bank of Hawaii Corporation First Quarter 2019 Financial Results Page 2

Results for the first quarter of 2019 included a provision for credit losses of $3.0 million compared with a provision for credit losses of $2.0 million in the fourth quarter of 2018 and $4.1 million in the first quarter of 2018. The lower provision for credit losses during the fourth quarter of 2018 was largely due to the release of credit loss reserves related to the sale of the credit card portfolio.

Noninterest income was $43.7 million in the first quarter of 2019, an increase of $1.6 million compared with noninterest income of $42.1 million in the fourth quarter of 2018 and a decrease of $0.3 million compared with noninterest income of $44.0 million in the first quarter of 2018. Noninterest income in the first quarter of 2019 included a $1.4 million commission related to insurance products offered through a third-party administrator. Noninterest income in the first quarter of 2018 included $2.8 million from a low-income housing investment sale. There were no significant items in noninterest income during the fourth quarter of 2018.

Noninterest expense was $93.1 million in the first quarter of 2019, a decrease of $2.8 million compared with noninterest expense of $95.9 million in the fourth quarter of 2018 and a decrease of $1.3 million from noninterest expense of $94.4 million in the same quarter last year. Noninterest expense in the first quarter of 2019 included seasonal payroll expenses of approximately $2.7 million. Noninterest expense in the fourth quarter of 2018 included $3.0 million in one-time significant items related to a medical expense, an operational loss, and legal expenses. Noninterest expense in the first quarter of 2018 included seasonal payroll expenses of approximately $2.5 million in addition to a legal reserve of $2.0 million. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The efficiency ratio during the first quarter of 2019 declined to 55.22 percent compared with 57.75 percent in the previous quarter and 57.91 percent in the same quarter last year.

The effective tax rate for the first quarter of 2019 was 18.85 percent compared with an effective tax rate of 20.92 percent in the previous quarter and 16.19 percent during the same quarter last year. The first quarter of 2019 included tax benefits of $1.9 million related to a commercial customer’s exercise of an early-buy-out option on a leveraged lease. There were no significant items impacting the tax rate during the fourth quarter of 2018. The tax rate during the first quarter of 2018 was favorably impacted by a $2.0 million adjustment to the Company’s low-income housing investments.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services and Private Banking, and Treasury & Other. Results for the business segments are determined based on the Company’s internal financial management reporting process and organizational structure. Selected financial information is included in Table 13.

Asset Quality

The Company’s asset quality remained strong during the first quarter of 2019. Total non-performing assets were $17.9 million at March 31, 2019, compared with non-performing assets of $12.9 million at December 31, 2018 and $15.7 million at March 31, 2018. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.17 percent at the end of the first quarter of 2019, compared with 0.12 percent at the end of the fourth quarter of 2018 and 0.16 percent at the end of the first quarter last year.

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Bank of Hawaii Corporation First Quarter 2019 Financial Results Page 3

Accruing loans and leases past due 90 days or more were $6.1 million at March 31, 2019, compared with $6.6 million at December 31, 2018 and $8.2 million at March 31, 2018. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $48.6 million at March 31, 2019, down from $48.7 million at December 31, 2018 and $56.7 million at March 31, 2018. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loans and leases charged off during the first quarter of 2019 were $3.7 million or 0.14 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $6.8 million during the quarter were partially offset by recoveries of $3.2 million. Net charge-offs during the fourth quarter of 2018 were $4.0 million or 0.15 percent annualized of total average loans and leases outstanding and were comprised of $6.9 million in charge-offs partially offset by recoveries of $2.9 million. Net charge-offs during the first quarter of 2018 were $3.5 million or 0.15 percent annualized of total average loans and leases outstanding and were comprised of $6.0 million in charge-offs partially offset by recoveries of $2.5 million.

The allowance for loan and lease losses was $106.0 million at March 31, 2019, a decrease from $106.7 million at December 31, 2018 and $107.9 million at March 31, 2018. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.01 percent at March 31, 2019 compared with 1.02 percent at December 31, 2018 and 1.09 percent at March 31, 2018. The reserve for unfunded commitments of $6.8 million at March 31, 2019 was unchanged from the prior quarter and the same quarter last year. Details of loan and lease charge-offs, recoveries, and components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets were $17.4 billion at March 31, 2019, up from total assets of $17.1 billion at December 31, 2018 and $17.1 billion at March 31, 2018. Average total assets were $17.2 billion during the first quarter of 2019, an increase from average total assets of $17.0 billion during the previous quarter and the same quarter last year.

The investment securities portfolio was $5.5 billion at March 31, 2019 compared with $5.5 billion at December 31, 2018 and $6.0 billion at March 31, 2018. The portfolio at March 31, 2019 remains largely comprised of securities issued by U.S. government agencies and includes $3.7 billion in securities held to maturity and $1.9 billion in securities available for sale.

Total loans and leases were $10.5 billion at March 31, 2019, an increase of $99.8 million or 1.0 percent from total loans and leases of $10.4 billion at December 31, 2018 and up $632.0 million or 6.4 percent from $9.9 billion at March 31, 2018. Average total loans and leases were $10.5 billion during the first quarter of 2019, an increase of 1.4 percent from average loans and leases of $10.3 billion during the previous quarter and up 6.8 percent from $9.8 billion during the same quarter last year. The commercial portfolio was $4.0 billion at the end of the first quarter of 2019, up $20.5 million or 0.5 percent from commercial loans of $4.0 billion at the end of the fourth quarter of 2018 and up $207.5 million or 5.5 percent from commercial loans of $3.8 billion at the end of the first quarter last year. The previously mentioned early buy out of a leveraged lease during the first quarter of 2019 reduced the commercial loan portfolio by $15.0 million in outstanding balances. Consumer loans were $6.5 billion at March 31, 2019, up $79.4 million or 1.2 percent from consumer loans of $6.5 billion at the end of the fourth quarter of 2018 and up $424.5 million or 6.9 percent from $6.1 billion at the end of the first quarter last year. Loan and lease portfolio balances are summarized in Table 10.

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Bank of Hawaii Corporation First Quarter 2019 Financial Results Page 4

Total deposits were $15.3 billion at March 31, 2019, up $240.1 million or 1.6 percent from total deposits of $15.0 billion at December 31, 2018 and up $310.2 million or 2.1 percent from total deposits of $15.0 billion at March 31, 2018. Average total deposits were $15.0 billion during the first quarter of 2019, an increase of $191.9 million compared with average total deposits of $14.8 billion during the previous quarter and an increase of $251.1 million compared with average total deposits of $14.7 billion during the same quarter last year. Consumer deposits increased to $7.9 billion at March 31, 2019, up $218.1 million or 2.8 percent from consumer deposits of $7.7 billion at the end of the fourth quarter of 2018 and up $278.9 million or 3.6 percent from $7.7 billion at the end of the first quarter last year. Commercial deposits increased to $6.2 billion at March 31, 2019, up $63.9 million or 1.0 percent from commercial deposits of $6.1 billion at the end of the fourth quarter of 2018 and up $264.8 million or 4.5 percent from $5.9 billion at the end of the first quarter last year. Other deposits, including public funds, were $1.2 billion at March 31, 2019, down slightly from $1.2 billion at December 31, 2018 and down from $1.4 billion at March 31, 2018. Deposit balances are summarized in Tables 7 and 10.

Total shareholders’ equity was $1.3 billion at March 31, 2019, up slightly from December 31, 2018 and an increase from $1.2 billion at March 31, 2018. The Tier 1 Capital Ratio was 12.75 percent at March 31, 2019 compared with 13.07 percent at December 31, 2018 and 13.37 percent at March 31, 2018. The Tier 1 Leverage Ratio at March 31, 2019 was 7.46 percent compared with 7.60 percent at December 31, 2018 and 7.46 percent at March 31, 2018.

During the first quarter of 2019, the Company repurchased 513.4 thousand shares of common stock at a total cost of $39.9 million under its share repurchase program. The average cost was $77.79 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through March 31, 2019, the Company has repurchased 55.8 million shares and returned over $2.2 billion to shareholders at an average cost of $39.50 per share. Remaining buyback authority under the share repurchase program was $121.8 million at March 31, 2019. From April 1 through April 18, 2019 the Company repurchased an additional 114.0 thousand shares of common stock at an average cost of $80.79 per share.

The Company’s Board of Directors declared a quarterly cash dividend of $0.65 per share on the Company’s outstanding shares, an increase of 4.8 percent from the cash dividend of $0.62 per share in the previous quarter. The dividend will be payable on June 14, 2019 to shareholders of record at the close of business on May 31, 2019.

Hawaii Economy

General economic conditions in Hawaii remained healthy during the first quarter of 2019. The statewide seasonally-adjusted unemployment continues to remain low at 2.8 percent in March 2019, well below the 3.8 percent unemployment rate nationally.

The real estate market on Oahu remained strong during the first quarter of 2019 with a moderate decrease in home sales. Single-family home sales declined 5.7 percent and condominium sales declined 10.5 percent compared with sales during the first quarter of 2018. The median sales price of a single-family home increased 2.0 percent and the median sales price of a condominium decreased 3.2 percent compared with the same quarter last year. As of March 31, 2019, the inventory of single-family homes and condominiums on Oahu was 3.4 months and 3.6 months, respectively.

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Bank of Hawaii Corporation First Quarter 2019 Financial Results Page 5

For the first two months of 2019, total visitor arrivals increased 1.8 percent although visitor spending declined 2.4 percent compared to the same period in 2018. Tourism during 2019 is expected to continue performing well. Scheduled air seats to Hawaii are projected to expand as Southwest Airlines began flying to Hawaii in March and Hawaiian Airlines began offering the first non-stop flights between Hawaii and Boston in April. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its first quarter financial results today at 2:00 p.m. Eastern Daylight Time (8:00 a.m. Hawaii Time). The call will be accessible via teleconference and via the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. The toll-free number is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning approximately 10:00 a.m. Hawaii Time on Monday, April 22, 2019. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the pass code 44456158 when prompted. In addition, a replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements," such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. 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 Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.

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

# # # #



Bank of Hawaii Corporation and Subsidiaries
Financial Highlights							Table 1
	Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands, except per share amounts)	2019			2018			2018
For the Period:
Operating Results
Net Interest Income	$	124,837		$	123,973		$	118,956
Provision for Credit Losses	3,000			2,000			4,125
Total Noninterest Income	43,679			42,108			44,035
Total Noninterest Expense	93,057			95,911			94,384
Net Income	58,799			53,911			54,040
Basic Earnings Per Share	1.44			1.30			1.29
Diluted Earnings Per Share	1.43			1.30			1.28
Dividends Declared Per Share	0.62			0.62			0.52

Performance Ratios
Return on Average Assets	1.38		%	1.26		%	1.29		%
Return on Average Shareholders' Equity	18.81			17.05			17.74
Efficiency Ratio ¹	55.22			57.75			57.91
Net Interest Margin ²	3.12			3.10			3.00
Dividend Payout Ratio ³	43.06			47.69			40.31
Average Shareholders' Equity to Average Assets	7.35			7.39			7.29

Average Balances
Average Loans and Leases	$	10,467,321		$	10,320,051		$	9,803,753
Average Assets	17,236,059			16,988,550			16,957,430
Average Deposits	14,971,404			14,779,511			14,720,266
Average Shareholders' Equity	1,267,438			1,254,704			1,235,550

Per Share of Common Stock
Book Value	$	30.91		$	30.56		$	29.33
Tangible Book Value	30.14			29.80			28.59
Market Value
Closing	78.87			67.32			83.10
High	83.94			82.80			89.09
Low	66.54			63.64			78.40

	March 31,			December 31,			March 31,
	2019			2018			2018
As of Period End:
Balance Sheet Totals
Loans and Leases	$	10,548,609		$	10,448,774		$	9,916,628
Total Assets	17,446,413			17,143,974			17,136,030
Total Deposits	15,267,310			15,027,242			14,957,133
Other Debt	110,624			135,643			235,699
Total Shareholders' Equity	1,269,690			1,268,200			1,241,193

Asset Quality
Non-Performing Assets	$	17,925		$	12,930		$	15,736
Allowance for Loan and Lease Losses	106,023			106,693			107,938
Allowance to Loans and Leases Outstanding	1.01		%	1.02		%	1.09		%

Capital Ratios
Common Equity Tier 1 Capital Ratio	12.75		%	13.07		%	13.37		%
Tier 1 Capital Ratio	12.75			13.07			13.37
Total Capital Ratio	13.87			14.21			14.58
Tier 1 Leverage Ratio	7.46			7.60			7.46
Total Shareholders' Equity to Total Assets	7.28			7.40			7.24
Tangible Common Equity to Tangible Assets ⁴	7.11			7.23			7.07
Tangible Common Equity to Risk-Weighted Assets ⁴	12.28			12.52			12.80

Non-Financial Data
Full-Time Equivalent Employees	2,112			2,122			2,138
Branches	69			69			69
ATMs	385			382			377

¹Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
²Net 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 share divided by basic earnings per share.
⁴Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 “Reconciliation of Non-GAAP Financial Measures."
Note: Total Capital Ratio was revised from 14.59% as of March 31, 2018.



Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures								Table 2
		March 31,			December 31,			March 31,
(dollars in thousands)		2019			2018			2018

Total Shareholders' Equity		$	1,269,690		$	1,268,200		$	1,241,193
Less:	Goodwill	31,517			31,517			31,517
Tangible Common Equity		$	1,238,173		$	1,236,683		$	1,209,676

Total Assets		$	17,446,413		$	17,143,974		$	17,136,030
Less:	Goodwill	31,517			31,517			31,517
Tangible Assets		$	17,414,896		$	17,112,457		$	17,104,513

Risk-Weighted Assets, determined in accordance
	with prescribed regulatory requirements	$	10,079,858		$	9,878,904		$	9,452,847

Total Shareholders' Equity to Total Assets		7.28		%	7.40		%	7.24		%
Tangible Common Equity to Tangible Assets (Non-GAAP)		7.11		%	7.23		%	7.07		%

Tier 1 Capital Ratio		12.75		%	13.07		%	13.37		%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)		12.28		%	12.52		%	12.80		%

Note: Risk-Weighted Assets was revised from $9,451,647 as of March 31, 2018.



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income							Table 3
	Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands, except per share amounts)	2019			2018			2018
Interest Income
Interest and Fees on Loans and Leases	$	108,511		$	107,404		$	97,634
Income on Investment Securities
Available-for-Sale	13,432			13,043			12,141
Held-to-Maturity	21,921			21,482			21,296
Deposits	15			10			18
Funds Sold	1,444			727			757
Other	319			352			300
Total Interest Income	145,642			143,018			132,146
Interest Expense
Deposits	15,284			13,172			7,581
Securities Sold Under Agreements to Repurchase	4,571			4,671			4,564
Funds Purchased	157			440			53
Short-Term Borrowings	36			88			16
Other Debt	757			674			976
Total Interest Expense	20,805			19,045			13,190
Net Interest Income	124,837			123,973			118,956
Provision for Credit Losses	3,000			2,000			4,125
Net Interest Income After Provision for Credit Losses	121,837			121,973			114,831
Noninterest Income
Trust and Asset Management	10,761			10,558			11,181
Mortgage Banking	2,287			2,148			2,145
Service Charges on Deposit Accounts	7,364			7,562			7,129
Fees, Exchange, and Other Service Charges	14,208			14,576			14,333
Investment Securities Gains (Losses), Net	(835		)	(841		)	(666		)
Annuity and Insurance	2,578			1,409			1,206
Bank-Owned Life Insurance	1,710			1,941			1,842
Other	5,606			4,755			6,865
Total Noninterest Income	43,679			42,108			44,035
Noninterest Expense
Salaries and Benefits	56,586			54,856			54,422
Net Occupancy	7,594			8,918			8,534
Net Equipment	6,833			6,364			5,527
Data Processing	4,526			5,151			3,891
Professional Fees	2,453			2,467			2,773
FDIC Insurance	1,269			1,336			2,157
Other	13,796			16,819			17,080
Total Noninterest Expense	93,057			95,911			94,384
Income Before Provision for Income Taxes	72,459			68,170			64,482
Provision for Income Taxes	13,660			14,259			10,442
Net Income	$	58,799		$	53,911		$	54,040
Basic Earnings Per Share	$	1.44		$	1.30		$	1.29
Diluted Earnings Per Share	$	1.43		$	1.30		$	1.28
Dividends Declared Per Share	$	0.62		$	0.62		$	0.52
Basic Weighted Average Shares	40,938,318			41,325,456			42,038,573
Diluted Weighted Average Shares	41,213,453			41,601,649			42,358,425



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income							Table 4
		Three Months Ended
		March 31,		December 31,			March 31,
(dollars in thousands)		2019		2018			2018
Net Income		$	58,799	$	53,911		$	54,040
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities	6,919		11,169			(9,121		)
	Defined Benefit Plans	246		(2,974		)	216
Other Comprehensive Income (Loss)		7,165		8,195			(8,905		)
Comprehensive Income		$	65,964	$	62,106		$	45,135



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition							Table 5
	March 31,			December 31,			March 31,
(dollars in thousands)	2019			2018			2018
Assets
Interest-Bearing Deposits in Other Banks	$	3,550		$	3,028		$	2,589
Funds Sold	243,867			198,860			387,766
Investment Securities
Available-for-Sale	1,859,256			2,007,942			2,184,187
Held-to-Maturity (Fair Value of $3,637,496; $3,413,994; and $3,711,149)	3,668,811			3,482,092			3,789,092
Loans Held for Sale	17,909			10,987			23,548
Loans and Leases	10,548,609			10,448,774			9,916,628
Allowance for Loan and Lease Losses	(106,023		)	(106,693		)	(107,938		)
Net Loans and Leases	10,442,586			10,342,081			9,808,690
Total Earning Assets	16,235,979			16,044,990			16,195,872
Cash and Due from Banks	293,871			324,081			174,871
Premises and Equipment, Net	159,344			151,837			137,201
Operating Lease Right-of-Use Assets	104,166			—			—
Accrued Interest Receivable	52,820			51,230			52,941
Foreclosed Real Estate	3,225			1,356			2,768
Mortgage Servicing Rights	24,149			24,310			24,493
Goodwill	31,517			31,517			31,517
Bank-Owned Life Insurance	285,155			283,771			280,537
Other Assets	256,187			230,882			235,830
Total Assets	$	17,446,413		$	17,143,974		$	17,136,030

Liabilities
Deposits
Noninterest-Bearing Demand	$	4,595,915		$	4,739,596		$	4,759,777
Interest-Bearing Demand	2,961,444			3,002,925			3,028,373
Savings	5,946,881			5,539,199			5,397,291
Time	1,763,070			1,745,522			1,771,692
Total Deposits	15,267,310			15,027,242			14,957,133
Short-Term Borrowings	—			199			—
Securities Sold Under Agreements to Repurchase	504,299			504,296			505,293
Other Debt	110,624			135,643			235,699
Operating Lease Liabilities	111,230			—			—
Retirement Benefits Payable	40,343			40,494			37,046
Accrued Interest Payable	8,474			8,253			8,229
Taxes Payable and Deferred Taxes	29,935			19,736			29,557
Other Liabilities	104,508			139,911			121,880
Total Liabilities	16,176,723			15,875,774			15,894,837
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: March 31, 2019 - 58,166,535 / 41,078,688;
December 31, 2018 - 58,063,689 / 41,499,898;
and March 31, 2018 - 58,051,646 / 42,314,414)	578			577			577
Capital Surplus	574,594			571,704			563,598
Accumulated Other Comprehensive Loss	(43,878		)	(51,043		)	(51,097		)
Retained Earnings	1,674,264			1,641,314			1,551,900
Treasury Stock, at Cost (Shares: March 31, 2019 - 17,087,847;
December 31, 2018 - 16,563,791; and March 31, 2018 - 15,737,232)	(935,868		)	(894,352		)	(823,785		)
Total Shareholders' Equity	1,269,690			1,268,200			1,241,193
Total Liabilities and Shareholders' Equity	$	17,446,413		$	17,143,974		$	17,136,030



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																	Table 6
								Accum.
								Other
								Compre-
								hensive
		Common Shares		Common		Capital		Income			Retained			Treasury
(dollars in thousands)		Outstanding		Stock		Surplus		(Loss)			Earnings			Stock			Total
Balance as of December 31, 2018		41,499,898		$	577	$	571,704	$	(51,043	)	$	1,641,314		$	(894,352	)	$	1,268,200
Net Income		—		—		—		—			58,799			—			58,799
Other Comprehensive Income		—		—		—		7,165			—			—			7,165
Share-Based Compensation		—		—		2,274		—			—			—			2,274
Common Stock Issued under Purchase and Equity
	Compensation Plans	131,529		1		616		—			(203		)	1,673			2,087
Common Stock Repurchased		(552,739	)	—		—		—			—			(43,189		)	(43,189		)
Cash Dividends Declared ($0.62 per share)		—		—		—		—			(25,646		)	—			(25,646		)
Balance as of March 31, 2019		41,078,688		$	578	$	574,594	$	(43,878	)	$	1,674,264		$	(935,868	)	$	1,269,690

Balance as of December 31, 2017		42,401,443		$	576	$	561,161	$	(34,715	)	$	1,512,218		$	(807,372	)	$	1,231,868
Net Income		—		—		—		—			54,040			—			54,040
Other Comprehensive Loss		—		—		—		(8,905		)	—			—			(8,905		)
Reclassification of the Income Tax Effects of the
	Tax Cuts and Jobs Act from AOCI	—		—		—		(7,477		)	7,477			—			—
Share-Based Compensation		—		—		1,867		—			—			—			1,867
Common Stock Issued under Purchase and Equity
	Compensation Plans	121,299		1		570		—			252			1,128			1,951
Common Stock Repurchased		(208,328	)	—		—		—			—			(17,541		)	(17,541		)
Cash Dividends Declared ($0.52 per share)		—		—		—		—			(22,087		)	—			(22,087		)
Balance as of March 31, 2018		42,314,414		$	577	$	563,598	$	(51,097	)	$	1,551,900		$	(823,785	)	$	1,241,193



Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																Table 7
		Three Months Ended						Three Months Ended						Three Months Ended
		March 31, 2019						December 31, 2018						March 31, 2018
		Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	3.0	$	—	2.05	%	$	3.3	$	—	1.21	%	$	3.0	$	—	2.34	%
Funds Sold		241.6		1.5		2.39		128.2		0.7		2.22		204.7		0.8		1.48
Investment Securities
	Available-for-Sale
	Taxable	1,595.8		11.5		2.90		1,480.5		10.0		2.70		1,595.1		8.9		2.23
	Non-Taxable	279.1		2.4		3.45		556.4		3.8		2.77		604.7		4.1		2.74
	Held-to-Maturity
	Taxable	3,373.5		20.5		2.43		3,360.5		20.0		2.38		3,631.2		19.8		2.18
	Non-Taxable	234.1		1.8		3.15		235.1		1.9		3.16		238.0		1.9		3.18
Total Investment Securities		5,482.5		36.2		2.65		5,632.5		35.7		2.53		6,069.0		34.7		2.29
Loans Held for Sale		12.4		0.1		4.35		12.1		0.2		4.63		14.1		0.1		3.76
Loans and Leases ¹
	Commercial and Industrial	1,357.8		15.3		4.57		1,351.1		14.3		4.21		1,280.9		11.8		3.73
	Commercial Mortgage	2,310.4		24.9		4.36		2,256.0		24.2		4.25		2,096.4		20.6		3.99
	Construction	150.4		1.9		5.08		179.8		2.2		4.79		189.4		2.1		4.45
	Commercial Lease Financing	160.9		0.9		2.28		173.2		1.0		2.42		179.6		1.0		2.21
	Residential Mortgage	3,680.2		35.5		3.86		3,615.8		35.1		3.88		3,478.2		33.3		3.83
	Home Equity	1,690.0		16.1		3.87		1,652.4		15.7		3.78		1,595.4		14.6		3.70
	Automobile	668.2		6.0		3.66		641.8		6.0		3.73		541.5		5.6		4.19
	Other²	449.4		7.9		7.13		450.0		8.8		7.72		442.4		8.6		7.91
Total Loans and Leases		10,467.3		108.5		4.18		10,320.1		107.3		4.14		9,803.8		97.6		4.02
Other		35.5		0.3		3.60		36.8		0.4		3.82		40.7		0.3		2.95
Total Earning Assets ³		16,242.3		146.6		3.64		16,133.0		144.3		3.56		16,135.3		133.5		3.33
Cash and Due from Banks		240.8						234.3						228.6
Other Assets		753.0						621.3						593.5
Total Assets		$	17,236.1					$	16,988.6					$	16,957.4

Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,939.9	1.5		0.20		$	2,888.3	1.5		0.20		$	2,978.1	0.8		0.10
	Savings	5,760.8		6.7		0.47		5,494.5		4.5		0.32		5,366.3		2.1		0.16
	Time	1,703.4		7.1		1.69		1,800.7		7.2		1.59		1,713.5		4.7		1.11
Total Interest-Bearing Deposits		10,404.1		15.3		0.60		10,183.5		13.2		0.51		10,057.9		7.6		0.31
Short-Term Borrowings		31.1		0.2		2.49		89.6		0.5		2.31		19.1		0.1		1.45
Securities Sold Under Agreements to Repurchase		504.3		4.6		3.63		504.3		4.7		3.62		505.3		4.5		3.61
Other Debt		120.0		0.7		2.55		145.2		0.7		1.85		257.1		1.0		1.54
Total Interest-Bearing Liabilities		11,059.5		20.8		0.76		10,922.6		19.1		0.69		10,839.4		13.2		0.49
Net Interest Income				$	125.8					$	125.2					$	120.3
	Interest Rate Spread					2.88	%					2.87	%					2.84	%
	Net Interest Margin					3.12	%					3.10	%					3.00	%
Noninterest-Bearing Demand Deposits		4,567.3						4,596.0						4,662.4
Other Liabilities		341.9						215.3						220.0
Shareholders' Equity		1,267.4						1,254.7						1,235.6
Total Liabilities and Shareholders' Equity		$	17,236.1					$	16,988.6					$	16,957.4


¹ 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.
² Comprised of other consumer revolving credit, installment, and consumer lease financing.
³ Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $981,000, $1,263,000, and $1,344,000
	for the three months ended March 31, 2019, December 31, 2018, and March 31, 2018, respectively.



Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended March 31, 2019
	Compared to December 31, 2018
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	0.7		$	0.1		$	0.8
Investment Securities
Available-for-Sale
Taxable	0.8			0.7			1.5
Non-Taxable	(2.2		)	0.8			(1.4		)
Held-to-Maturity
Taxable	0.1			0.4			0.5
Non-Taxable	(0.1		)	—			(0.1		)
Total Investment Securities	(1.4		)	1.9			0.5
Loans Held for Sale	—			(0.1		)	(0.1		)
Loans and Leases
Commercial and Industrial	0.1			0.9			1.0
Commercial Mortgage	0.3			0.4			0.7
Construction	(0.4		)	0.1			(0.3		)
Commercial Lease Financing	(0.1		)	—			(0.1		)
Residential Mortgage	0.6			(0.2		)	0.4
Home Equity	0.2			0.2			0.4
Automobile	0.2			(0.2		)	—
Other ²	(0.1		)	(0.8		)	(0.9		)
Total Loans and Leases	0.8			0.4			1.2
Other	—			(0.1		)	(0.1		)
Total Change in Interest Income	0.1			2.2			2.3

Change in Interest Expense:
Interest-Bearing Deposits
Savings	0.2			2.0			2.2
Time	(0.5		)	0.4			(0.1		)
Total Interest-Bearing Deposits	(0.3		)	2.4			2.1
Short-Term Borrowings	(0.4		)	0.1			(0.3		)
Securities Sold Under Agreements to Repurchase	—			(0.1		)	(0.1		)
Other Debt	(0.1		)	0.1			—
Total Change in Interest Expense	(0.8		)	2.5			1.7

Change in Net Interest Income	$	0.9		$	(0.3	)	$	0.6


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 Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8b
	Three Months Ended March 31, 2019
	Compared to March 31, 2018
(dollars in millions)	Volume¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	0.2		$	0.5		$	0.7
Investment Securities
Available-for-Sale
Taxable	—			2.6			2.6
Non-Taxable	(2.6		)	0.9			(1.7		)
Held-to-Maturity
Taxable	(1.4		)	2.1			0.7
Non-Taxable	(0.1		)	—			(0.1		)
Total Investment Securities	(4.1		)	5.6			1.5
Loans and Leases
Commercial and Industrial	0.8			2.7			3.5
Commercial Mortgage	2.2			2.1			4.3
Construction	(0.5		)	0.3			(0.2		)
Commercial Lease Financing	(0.1		)	—			(0.1		)
Residential Mortgage	2.0			0.2			2.2
Home Equity	0.8			0.7			1.5
Automobile	1.2			(0.8		)	0.4
Other ²	0.2			(0.9		)	(0.7		)
Total Loans and Leases	6.6			4.3			10.9
Other	(0.2		)	0.2			—
Total Change in Interest Income	2.5			10.6			13.1

Change in Interest Expense:
Interest-Bearing Deposits
Demand	—			0.7			0.7
Savings	0.2			4.4			4.6
Time	—			2.4			2.4
Total Interest-Bearing Deposits	0.2			7.5			7.7
Short-Term Borrowings	0.1			—			0.1
Securities Sold Under Agreements to Repurchase	—			0.1			0.1
Other Debt	(0.7		)	0.4			(0.3		)
Total Change in Interest Expense	(0.4		)	8.0			7.6

Change in Net Interest Income	$	2.9		$	2.6		$	5.5


¹The 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 Hawaii Corporation and Subsidiaries
Salaries and Benefits					Table 9
	Three Months Ended
	March 31,		December 31,		March 31,
(dollars in thousands)	2019		2018		2018
Salaries	$	32,480	$	33,603	$	32,704
Incentive Compensation	5,904		5,715		5,178
Share-Based Compensation	3,079		1,417		2,081
Commission Expense	930		1,158		954
Retirement and Other Benefits	5,107		4,369		4,841
Payroll Taxes	4,247		2,277		4,172
Medical, Dental, and Life Insurance	4,465		5,237		3,461
Separation Expense	374		1,080		1,031
Total Salaries and Benefits	$	56,586	$	54,856	$	54,422



Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances										Table 10
		March 31,		December 31,		September 30,		June 30,		March 31,
(dollars in thousands)		2019		2018		2018		2018		2018
Commercial
	Commercial and Industrial	$	1,331,345	$	1,331,149	$	1,314,609	$	1,282,967	$	1,329,096
	Commercial Mortgage	2,381,213		2,302,356		2,237,020		2,169,357		2,097,339
	Construction	132,775		170,061		176,447		185,350		186,530
	Lease Financing	154,919		176,226		172,232		178,598		179,771
Total Commercial		4,000,252		3,979,792		3,900,308		3,816,272		3,792,736
Consumer
	Residential Mortgage	3,702,553		3,673,796		3,596,627		3,548,444		3,505,239
	Home Equity	1,698,666		1,681,442		1,625,208		1,622,314		1,601,698
	Automobile	676,730		658,133		625,086		592,705		558,468
	Other ¹	470,408		455,611		483,833		473,588		458,487
Total Consumer		6,548,357		6,468,982		6,330,754		6,237,051		6,123,892
Total Loans and Leases		$	10,548,609	$	10,448,774	$	10,231,062	$	10,053,323	$	9,916,628


Deposits
		March 31,		December 31,		September 30,		June 30,		March 31,
(dollars in thousands)		2019		2018		2018		2018		2018
Consumer		$	7,944,793	$	7,726,731	$	7,627,527	$	7,672,435	$	7,665,926
Commercial		6,162,042		6,098,186		5,967,343		5,921,414		5,897,194
Public and Other		1,160,475		1,202,325		1,248,465		1,349,509		1,394,013
Total Deposits		$	15,267,310	$	15,027,242	$	14,843,335	$	14,943,358	$	14,957,133


¹ Comprised of other revolving credit, installment, and lease financing.



Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More															Table 11
			March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands)			2019			2018			2018			2018			2018
Non-Performing Assets
Non-Accrual Loans and Leases
	Commercial
		Commercial and Industrial	$	393		$	542		$	1,205		$	917		$	986
		Commercial Mortgage	5,911			2,040			652			659			1,367
	Total Commercial		6,304			2,582			1,857			1,576			2,353
	Consumer
		Residential Mortgage	5,599			5,321			6,359			6,722			6,725
		Home Equity	2,797			3,671			3,673			3,933			3,890
	Total Consumer		8,396			8,992			10,032			10,655			10,615
Total Non-Accrual Loans and Leases			14,700			11,574			11,889			12,231			12,968
Foreclosed Real Estate			3,225			1,356			1,909			2,926			2,768
Total Non-Performing Assets			$	17,925		$	12,930		$	13,798		$	15,157		$	15,736

Accruing Loans and Leases Past Due 90 Days or More
Commercial
	Commercial and Industrial		$	66		$	10		$	—		$	2		$	—
	Commercial Mortgage		—			—			—			5,680			—
Total Commercial			66			10			—			5,682			—
Consumer
	Residential Mortgage		$	903		$	2,446		$	2,426		$	2,281		$	2,927
	Home Equity		3,381			2,684			3,112			3,016			3,013
	Automobile		734			513			829			674			333
	Other ¹		1,033			914			1,727			1,660			1,895
Total Consumer			6,051			6,557			8,094			7,631			8,168
Total Accruing Loans and Leases Past Due 90 Days or More			$	6,117		$	6,567		$	8,094		$	13,313		$	8,168
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More			$	48,571		$	48,731		$	49,462		$	50,212		$	56,743
Total Loans and Leases			$	10,548,609		$	10,448,774		$	10,231,062		$	10,053,323		$	9,916,628

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.14		%	0.11		%	0.12		%	0.12		%	0.13		%

Ratio of Non-Performing Assets to Total Loans and Leases
	and Foreclosed Real Estate		0.17		%	0.12		%	0.13		%	0.15		%	0.16		%

Ratio of Commercial Non-Performing Assets to Total Commercial Loans
	and Leases and Commercial Foreclosed Real Estate		0.16		%	0.06		%	0.05		%	0.04		%	0.06		%

Ratio of Consumer Non-Performing Assets to Total Consumer Loans
	and Leases and Consumer Foreclosed Real Estate		0.18		%	0.16		%	0.19		%	0.22		%	0.22		%

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		0.23		%	0.19		%	0.21		%	0.28		%	0.24		%

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter			$	12,930		$	13,798		$	15,157		$	15,736		$	16,120
Additions			8,217			4,509			2,030			1,949			2,332
Reductions
	Payments		(989		)	(3,759		)	(415		)	(1,847		)	(1,251		)
	Return to Accrual Status		(316		)	(605		)	(1,420		)	(126		)	(1,270		)
	Sales of Foreclosed Real Estate		—			(653		)	(1,301		)	(421		)	—
	Charge-offs/Write-downs		(1,917		)	(360		)	(253		)	(134		)	(195		)
Total Reductions			(3,222		)	(5,377		)	(3,389		)	(2,528		)	(2,716		)
Balance at End of Quarter			$	17,925		$	12,930		$	13,798		$	15,157		$	15,736


¹ Comprised of other revolving credit, installment, and lease financing.



Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses									Table 12
			Three Months Ended
			March 31,			December 31,			March 31,
(dollars in thousands)			2019			2018			2018
Balance at Beginning of Period			$	113,515		$	115,512		$	114,168
Loans and Leases Charged-Off
	Commercial
		Commercial and Industrial	(370		)	(365		)	(206		)
		Commercial Mortgage	(1,616		)	—			—
	Consumer
		Residential Mortgage	(4		)	(1		)	(97		)
		Home Equity	(295		)	(406		)	(91		)
		Automobile	(1,753		)	(2,335		)	(2,254		)
		Other ¹	(2,790		)	(3,781		)	(3,340		)
Total Loans and Leases Charged-Off			(6,828		)	(6,888		)	(5,988		)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
		Commercial and Industrial	501			803			328
	Consumer
		Residential Mortgage	484			112			220
		Home Equity	588			367			625
		Automobile	881			949			599
		Other¹	704			660			683
Total Recoveries on Loans and Leases Previously Charged-Off			3,158			2,891			2,455
Net Loans and Leases Charged-Off			(3,670		)	(3,997		)	(3,533		)
Provision for Credit Losses			3,000			2,000			4,125
Balance at End of Period ²			$	112,845		$	113,515		$	114,760

Components
Allowance for Loan and Lease Losses			$	106,023		$	106,693		$	107,938
Reserve for Unfunded Commitments			6,822			6,822			6,822
Total Reserve for Credit Losses			$	112,845		$	113,515		$	114,760

Average Loans and Leases Outstanding			$	10,467,321		$	10,320,051		$	9,803,753

Ratio of Net Loans and Leases Charged-Off to
	Average Loans and Leases Outstanding (annualized)		0.14		%	0.15		%	0.15		%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding			1.01		%	1.02		%	1.09		%

¹ Comprised of other revolving credit, installment, and lease financing.
² Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.



Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information													Table 13
							Investment
							Services and
	Retail			Commercial			Private			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Banking			and Other			Total
Three Months Ended March 31, 2019
Net Interest Income	$	66,154		$	47,290		$	10,198		$	1,195		$	124,837
Provision for Credit Losses	2,241			1,446			(17		)	(670		)	3,000
Net Interest Income After Provision for Credit Losses	63,913			45,844			10,215			1,865			121,837
Noninterest Income	21,233			7,061			13,245			2,140			43,679
Noninterest Expense	(52,524		)	(20,955		)	(16,903		)	(2,675		)	(93,057		)
Income Before Provision for Income Taxes	32,622			31,950			6,557			1,330			72,459
Provision for Income Taxes	(8,105		)	(6,002		)	(1,729		)	2,176			(13,660		)
Net Income	$	24,517		$	25,948		$	4,828		$	3,506		$	58,799
Total Assets as of March 31, 2019	$	6,454,127		$	4,004,176		$	341,979		$	6,646,131		$	17,446,413


Three Months Ended March 31, 2018
Net Interest Income	$	64,397		$	42,898		$	9,887		$	1,774		$	118,956
Provision for Credit Losses	3,743			(151		)	(60		)	593			4,125
Net Interest Income After Provision for Credit Losses	60,654			43,049			9,947			1,181			114,831
Noninterest Income	19,253			5,642			13,670			5,470			44,035
Noninterest Expense	(54,599		)	(20,332		)	(16,207		)	(3,246		)	(94,384		)
Income Before Provision for Income Taxes	25,308			28,359			7,410			3,405			64,482
Provision for Income Taxes	(6,291		)	(6,824		)	(1,954		)	4,627			(10,442		)
Net Income	$	19,017		$	21,535		$	5,456		$	8,032		$	54,040
Total Assets as of March 31, 2018	$	6,041,271		$	3,771,678		$	332,454		$	6,990,627		$	17,136,030



Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data																	Table 14
	Three Months Ended
	March 31,				December 31,				September 30,				June 30,				March 31,
(dollars in thousands, except per share amounts)	2019				2018				2018				2018				2018
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	108,511			$	107,404			$	104,248			$	101,311			$	97,634
Income on Investment Securities
Available-for-Sale	13,432				13,043				12,588				12,380				12,141
Held-to-Maturity	21,921				21,482				20,821				20,711				21,296
Deposits	15				10				10				(4		)		18
Funds Sold	1,444				727				1,393				846				757
Other	319				352				364				341				300
Total Interest Income	145,642				143,018				139,424				135,585				132,146
Interest Expense
Deposits	15,284				13,172				10,931				9,459				7,581
Securities Sold Under Agreements to Repurchase	4,571				4,671				4,667				4,617				4,564
Funds Purchased	157				440				33				83				53
Short-Term Borrowings	36				88				28				13				16
Other Debt	757				674				838				917				976
Total Interest Expense	20,805				19,045				16,497				15,089				13,190
Net Interest Income	124,837				123,973				122,927				120,496				118,956
Provision for Credit Losses	3,000				2,000				3,800				3,500				4,125
Net Interest Income After Provision for Credit Losses	121,837				121,973				119,127				116,996				114,831
Noninterest Income
Trust and Asset Management	10,761				10,558				10,782				11,356				11,181
Mortgage Banking	2,287				2,148				1,965				2,179				2,145
Service Charges on Deposit Accounts	7,364				7,562				7,255				6,865				7,129
Fees, Exchange, and Other Service Charges	14,208				14,576				14,173				14,400				14,333
Investment Securities Gains (Losses), Net	(835		)		(841		)		(729		)		(1,702		)		(666		)
Annuity and Insurance	2,578				1,409				1,360				1,847				1,206
Bank-Owned Life Insurance	1,710				1,941				1,620				1,796				1,842
Other	5,606				4,755				5,056				4,557				6,865
Total Noninterest Income	43,679				42,108				41,482				41,298				44,035
Noninterest Expense
Salaries and Benefits	56,586				54,856				51,782				52,148				54,422
Net Occupancy	7,594				8,918				8,702				8,588				8,534
Net Equipment	6,833				6,364				6,116				5,845				5,527
Data Processing	4,526				5,151				4,241				4,563				3,891
Professional Fees	2,453				2,467				2,206				2,546				2,773
FDIC Insurance	1,269				1,336				2,057				2,182				2,157
Other	13,796				16,819				15,434				14,919				17,080
Total Noninterest Expense	93,057				95,911				90,538				90,791				94,384
Income Before Provision for Income Taxes	72,459				68,170				70,071				67,503				64,482
Provision for Income Taxes	13,660				14,259				13,138				12,785				10,442
Net Income	$	58,799			$	53,911			$	56,933			$	54,718			$	54,040

Basic Earnings Per Share	$	1.44			$	1.30			$	1.37			$	1.31			$	1.29
Diluted Earnings Per Share	$	1.43			$	1.30			$	1.36			$	1.30			$	1.28

Balance Sheet Totals
Loans and Leases	$	10,548,609			$	10,448,774			$	10,231,062			$	10,053,323			$	9,916,628
Total Assets	17,446,413				17,143,974				16,991,734				17,124,162				17,136,030
Total Deposits	15,267,310				15,027,242				14,843,335				14,943,358				14,957,133
Total Shareholders' Equity	1,269,690				1,268,200				1,253,327				1,247,717				1,241,193

Performance Ratios
Return on Average Assets	1.38			%	1.26			%	1.33			%	1.30			%	1.29			%
Return on Average Shareholders' Equity	18.81				17.05				18.06				17.68				17.74
Efficiency Ratio ¹	55.22				57.75				55.07				56.12				57.91
Net Interest Margin ²	3.12				3.10				3.07				3.04				3.00

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 Hawaii Corporation and Subsidiaries
Hawaii Economic Trends															Table 15
	Two Months Ended					Year Ended
($ in millions; jobs in thousands)	February 28, 2019					December 31, 2018							December 31, 2017
Hawaii Economic Trends
State General Fund Revenues ¹	$	1,200.3	(2.9	)	%	$	6,933.1			6.9		%	$	6,485.0		4.3	%
General Excise and Use Tax Revenue¹	$	640.5	(5.2	)	%	$	3,426.5			2.3		%	$	3,349.8		4.5	%
Jobs ²	656.5					660.0							664.5

										March 31,			December 31,
(spot rates)										2019			2018			2017
Unemployment³
Statewide, seasonally adjusted										2.8		%	2.5		%	2.1	%

Oahu										2.7			2.2			1.7
Island of Hawaii										3.7			2.9			2.0
Maui										2.8			2.3			1.8
Kauai										3.0			2.3			1.7

						March 31,				December 31,
(percentage change, except months of inventory)						2019				2018			2017			2016
Housing Trends (Single Family Oahu) ⁴
Median Home Price						2.0			%	4.6		%	2.7		%	5.0	%
Home Sales Volume (units)						(5.7		)	%	(7.7	)	%	6.3		%	6.5	%
Months of Inventory						3.4				2.8			2.1			2.5

						Monthly Visitor Arrivals,							Percentage Change
(in thousands)						Not Seasonally Adjusted							from Previous Year
Tourism⁵

February 28, 2019										782.6						0.5
January 31, 2019										820.6						3.0
December 31, 2018										910.1						3.4
November 30, 2018										782.0						4.3
October 31, 2018										770.4						4.4
September 30, 2018										724.9						3.5
August 31, 2018										845.1						3.2
July 31, 2018										939.4						5.3
June 30, 2018										897.1						7.3
May 31, 2018										804.1						7.0
April 30, 2018										803.0						6.6
March 31, 2018										903.6						12.5
February 28, 2018										778.6						10.3
January 31, 2018										796.5						5.4
December 31, 2017										880.4						6.3
November 30, 2017										749.5						7.5
October 31, 2017										737.6						2.9
September 30, 2017										700.5						4.9
August 31, 2017										818.6						4.8
July 31, 2017										891.9						6.8
June 30, 2017										835.9						4.5
May 31, 2017										751.2						4.5
April 30, 2017										753.0						7.5
March 31, 2017										802.8						2.1
February 28, 2017										706.1						2.5
January 31, 2017										756.0						4.9

¹ Source: Hawaii Department of Business, Economic Development & Tourism
² Source: U. S. Bureau of Labor Statistics
³ Source: Hawaii Department of Labor and Industrial Relations, County jobs data not seasonally adjusted.
⁴ Source: Honolulu Board of REALTORS
⁵ Source: Hawaii Tourism Authority