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			October 28, 2019
(Date of earliest event reported)

BANK OF HAWAII CORP

(Exact name of registrant as specified in its charter)


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


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

(888) 643-3888

(Registrant's telephone number, including area code)

N/A

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

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

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock

$.01 Par Value

BOH

New York Stock Exchange

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

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

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

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

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

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

Item 2.02. Results of Operations and Financial Condition.

On October 28, 2019, Bank of Hawaii Corporation announced its results of operations for the quarter ended September 30, 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 October 28, 2019 Press Release: Bank of Hawaii Corporation Third Quarter 2019 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: October 28, 2019	Bank of Hawaii Corporation


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

Document

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Bank of Hawaii Corporation Third Quarter 2019 Financial Results

•Diluted Earnings Per Share $1.29

•Net Income $52.1 Million

•Board of Directors Declares Dividend of $0.67 Per Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (October 28, 2019) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $1.29 for the third quarter of 2019, down from $1.40 in the second quarter of 2019 and $1.36 in the third quarter of 2018. Net income for the third quarter of 2019 was $52.1 million compared with net income of $56.9 million in the previous quarter and $56.9 million in the same quarter last year. Net income in the third quarter of 2019 included the previously announced increase in the legal reserve of $6.0 million related to the tentative settlement of a class action lawsuit regarding the Company’s overdraft practices.

Loan and lease balances increased to $10.9 billion at September 30, 2019, up 1.1 percent from June 30, 2019 and up 6.4 percent compared with September 30, 2018. Deposits were $15.3 billion at the end of the third quarter of 2019, down 1.0 percent from the previous quarter primarily due to a seasonal decline in public deposits and up 3.4 percent compared with the third quarter last year.

"We were pleased with Bank of Hawaii’s overall financial results during the third quarter of 2019," said Peter S. Ho, Chairman, President, and CEO. “Loan balances continue to grow, deposits were in line with our expectations, total revenue increased, asset quality remains strong, and our core expenses were well controlled.”

The return on average assets for the third quarter of 2019 was 1.17 percent compared with 1.31 percent in the previous quarter and 1.33 percent in the same quarter last year. The return on average equity for the third quarter of 2019 was 16.02 percent compared with 17.97 percent for the second quarter of 2019 and 18.06 percent in the third quarter of 2018. The efficiency ratio for the third quarter of 2019 was 58.55 percent compared with 54.69 percent in the previous quarter and 55.07 percent in the same quarter last year.

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Bank of Hawaii Corporation Third Quarter 2019 Financial Results Page 2

For the nine-month period ended September 30, 2019, net income was $167.8 million, an increase of $2.1 million from net income of $165.7 million for the same period last year. Diluted earnings per share were $4.11 for the nine-month period in 2019 compared with diluted earnings per share of $3.93 for the same period in 2018. The 2019 year-to-date return on average assets was 1.29 percent compared with 1.31 percent for the same period in 2018. The 2019 year-to-date return on average equity was 17.58 percent compared with 17.83 percent for the nine months ended September 30, 2018. The efficiency ratio for the nine-month period ended September 30, 2019 was 56.16 percent compared with 56.36 percent for the same period last year.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the third quarter of 2019 was $125.2 million, an increase of $0.5 million from net interest income of $124.7 million in the second quarter of 2019 and an increase of $1.0 million from net interest income of $124.2 million in the third quarter of last year. Net interest income for the nine-month period in 2019 was $375.7 million, an increase of $9.4 million from net interest income of $366.3 million for the same period in 2018. Analyses of the changes in net interest income are included in Tables 8a, 8b, and 8c.

The net interest margin was 3.01 percent for the third quarter of 2019, a decrease of 3 basis points from the net interest margin of 3.04 percent in the second quarter of 2019 and a 6 basis point decrease from the net interest margin of 3.07 percent in the third quarter of 2018. The net interest margin for the first nine months of 2019 was 3.05 percent, an increase of 1 basis point compared with 3.04 percent for the same nine-month period last year.

Results for the third quarter of 2019 included a provision for credit losses of $4.3 million compared with a provision for credit losses of $4.0 million in the previous quarter and $3.8 million in the same quarter last year. The provision for credit losses during the first nine months of 2019 was $11.3 million compared with $11.4 million during the same period in 2018.

Noninterest income was $46.5 million in the third quarter of 2019, up $1.0 million from noninterest income of $45.5 million in the second quarter of 2019 and up $5.0 million from $41.5 million in the same quarter last year. Noninterest income during the third quarter of 2019 included a negative adjustment of $0.5 million related to a change in the Visa Class B conversion ratio. There were no significant items in noninterest income during the second quarter of 2019 or the third quarter of 2018. The increase in noninterest income compared to the third quarter of 2018 was largely due to an increase in mortgage banking income and customer derivative activity. Noninterest income for the nine-months ended September 30, 2019 was $135.6 million, an increase of $8.8 million compared with noninterest income of $126.8 million for the same period in 2018.

Noninterest expense was $100.3 million in the third quarter of 2019, up $7.6 million from noninterest expense of $92.7 million in the previous quarter and up $9.8 million from $90.5 million in the same quarter last year. Noninterest expense during the third quarter of 2019 included the previously mentioned $6.0 million increase in the legal reserve. There were no significant items in noninterest expense during the second quarter of 2019 or the third quarter of 2018. Noninterest expense for the nine-months ended September 30, 2019 was $286.1 million compared with noninterest expense of $275.7 million for the same period in 2018. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the third quarter of 2019 was 22.08 percent compared with 21.84 percent in the previous quarter and 18.75 percent during the same quarter last year. The effective tax rate for the nine-month period ended September 30, 2019 was 20.89 percent compared with 18.00 percent for the same period last year.

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Bank of Hawaii Corporation Third Quarter 2019 Financial Results Page 3

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

Asset Quality

The Company’s overall asset quality remained strong during the third quarter of 2019. Total non-performing assets were $21.6 million at September 30, 2019, down from $21.8 million at June 30, 2019 and up from $13.8 million at September 30, 2018. As a percentage of total loans and leases and foreclosed real estate, non-performing assets were 0.20 percent at September 30, 2019, unchanged from June 30, 2019 and up from 0.13 percent at September 30, 2018.

Accruing loans and leases past due 90 days or more were $6.1 million at September 30, 2019 compared with $6.4 million at June 30, 2019 and $8.1 million at September 30, 2018. Restructured loans and leases not included in non-accrual loans or accruing loans past due 90 days or more were $46.2 million at September 30, 2019, down from $48.6 million at June 30, 2019 and $49.5 million at September 30, 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 third quarter of 2019 were $3.0 million or 0.11 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $5.8 million during the quarter were partially offset by recoveries of $2.8 million. Net charge-offs during the second quarter of 2019 were $2.4 million or 0.09 percent annualized of total average loans and leases outstanding and were comprised of $5.1 million in charge-offs partially offset by recoveries of $2.8 million. Net charge-offs during the third quarter of 2018 were $3.3 million or 0.13 percent annualized of total average loans and leases outstanding and were comprised of $6.0 million in charge-offs partially offset by recoveries of $2.7 million. Net charge-offs in the nine-month period ended September 30, 2019 were $9.0 million, or 0.11 percent annualized of total average loans and leases outstanding compared with net charge-offs of $10.1 million, or 0.14 percent annualized of total average loans and leases outstanding for the same period in 2018.

The allowance for loan and lease losses was $108.9 million at September 30, 2019 compared with $107.7 million at June 30, 2019 and $108.7 million at September 30, 2018. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.00 percent at September 30, 2019, unchanged from the previous quarter and down 6 basis points from the end of the same quarter last year. The reserve for unfunded commitments at September 30, 2019 of $6.8 million was unchanged from June 30, 2019 and September 30, 2018. Details of loan and lease charge-offs, recoveries and the components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets were $17.7 billion at September 30, 2019, down $16.7 million from June 30, 2019 and up $680.4 million from total assets of $17.0 billion at September 30, 2018. Average total assets were $17.6 billion during the third quarter of 2019 compared with $17.5 billion during the previous quarter and $17.0 billion during the same quarter last year.

The investment securities portfolio was $5.5 billion at September 30, 2019, a decrease of $68.3 million from total securities of $5.6 billion at June 30, 2019 and a decrease of $172.9 million from total securities of $5.7 billion at September 30, 2018. The portfolio remains largely comprised of securities issued by U. S. government agencies and included $2.9 billion in securities held to maturity and $2.6 billion in securities available for sale at September 30, 2019.

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Bank of Hawaii Corporation Third Quarter 2019 Financial Results Page 4

Total loans and leases were $10.9 billion at September 30, 2019, an increase of $122.2 million from total loans and leases of $10.8 billion at June 30, 2019 and up $650.2 million from total loans and leases of $10.2 billion at September 30, 2018. Average total loans and leases were $10.8 billion during the third quarter of 2019 compared with $10.6 billion during the previous quarter and $10.1 billion during the same quarter last year. The commercial loan portfolio increased to $4.2 billion at the end of the third quarter of 2019, up $54.4 million from $4.1 billion at the end of the previous quarter and up $256.4 million from $3.9 billion at the end of the third quarter last year. Total consumer loans increased to $6.7 billion at the end of the third quarter of 2019, up $67.8 million from $6.7 billion at the end of the previous quarter and up $393.8 million from $6.3 billion at the end of the third quarter last year. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $15.3 billion at September 30, 2019, a decrease of $148.1 million from total deposits of $15.5 billion at June 30, 2019 and an increase of $497.4 million from total deposits of $14.8 billion at September 30, 2018. Average total deposits were $15.3 billion during the third quarter of 2019 compared with $15.2 billion during the previous quarter and $14.8 billion during the same quarter last year. Consumer deposits were $7.9 billion at the end of the third quarter of 2019, up $13.2 million from $7.9 billion at the end of the previous quarter and up $265.9 million from $7.6 billion at the end of the same quarter last year. Commercial deposits were $6.2 billion at the end of the third quarter of 2019, down $25.5 million from $6.2 billion at the end of the previous quarter and up $186.1 million from $6.0 billion at the end of the same quarter last year. Other deposits, including public funds, were $1.3 billion at September 30, 2019, down $135.7 million from $1.4 billion at June 30, 2019 and up $45.3 million from $1.2 billion at September 30, 2018. Deposit balances are summarized in Tables 7 and 10.

During the third quarter of 2019, the Company repurchased 0.4 million shares of common stock at a total cost of $29.9 million under its share repurchase program. The average cost was $83.07 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through September 30, 2019, the Company has repurchased 56.6 million shares and returned $2.3 billion to shareholders at an average cost of $40.09 per share. Remaining buyback authority under the share repurchase program was $57.0 million at September 30, 2019. From October 1 through October 25, 2019 the Company repurchased an additional 92.0 thousand shares of common stock at an average cost of $84.46 per share.

Total shareholders’ equity was $1.29 billion at September 30, 2019, up slightly from $1.29 billion at June 30, 2019 and up from $1.25 billion at September 30, 2018. The Tier 1 Capital Ratio was 12.33 percent at September 30, 2019 compared with 12.46 percent at June 30, 2019 and 13.20 percent at September 30, 2018. The Tier 1 leverage ratio at September 30, 2019 was 7.32 percent compared with 7.36 percent at June 30, 2019 and 7.55 percent at September 30, 2018.

The Company’s Board of Directors declared a quarterly cash dividend of $0.67 per share on the Company’s outstanding shares. The dividend will be payable on December 13, 2019 to shareholders of record at the close of business on November 29, 2019.

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Bank of Hawaii Corporation Third Quarter 2019 Financial Results Page 5

Hawaii Economy

General economic conditions in Hawaii remained positive during the third quarter of 2019 although recent trends indicate a more modest growth rate for the State going forward. The statewide seasonally-adjusted unemployment rate continues to remain low at 2.7 percent in September 2019 compared to 3.5 percent nationally. Total visitor arrivals increased 5.2 percent in the first eight months of 2019 compared to the same eight-month period in 2018 supported by strong growth in air seat capacity. Total visitor spending decreased 0.5 percent for the eight-month period in 2019 compared with the same eight-month period in 2018. The real estate market remains active with strong growth in single-family home sales during the third quarter of 2019. For the first nine months of 2019, the median sales price of a single-family home on Oahu decreased 0.5 percent and the median price of a condominium on Oahu decreased 1.0 percent compared with the same period in 2018. The volume of single-family home sales on Oahu increased 0.8 percent and the volume of condominium sales on Oahu decreased 6.7 percent for the first nine months of 2019 compared to the same nine-month period in 2018. As of September 30, 2019, months of inventory of single-family homes and condominiums on Oahu were 3.5 months and 3.9 months, respectively. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

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 11:00 a.m. Hawaii Time on Monday, October 28, 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 conference ID 2768225 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 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 web site, www.boh.com.

# # # #


Bank of Hawaii 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)	2019			2019			2018			2019			2018
For the Period:
Operating Results
Net Interest Income	$	124,896		$	124,097		$	122,927		$	373,830		$	362,379
Provision for Credit Losses	4,250			4,000			3,800			11,250			11,425
Total Noninterest Income	46,507			45,450			41,482			135,636			126,815
Total Noninterest Expense	100,349			92,725			90,538			286,131			275,713
Net Income	52,052			56,919			56,933			167,770			165,691
Basic Earnings Per Share	1.30			1.40			1.37			4.14			3.96
Diluted Earnings Per Share	1.29			1.40			1.36			4.11			3.93
Dividends Declared Per Share	0.65			0.65			0.60			1.92			1.72

Performance Ratios
Return on Average Assets	1.17		%	1.31		%	1.33		%	1.29		%	1.31		%
Return on Average Shareholders' Equity	16.02			17.97			18.06			17.58			17.83
Efficiency Ratio ¹	58.55			54.69			55.07			56.16			56.36
Net Interest Margin ²	3.01			3.04			3.07			3.05			3.04
Dividend Payout Ratio³	50.00			46.43			43.80			46.38			43.43
Average Shareholders' Equity to Average Assets	7.32			7.27			7.35			7.31			7.32

Average Balances
Average Loans and Leases	$	10,770,720		$	10,631,558		$	10,081,886		$	10,624,311		$	9,950,518
Average Assets	17,605,394			17,480,651			17,015,340			17,442,054			16,965,075
Average Deposits	15,330,691			15,162,782			14,820,480			15,156,275			14,750,382
Average Shareholders' Equity	1,289,417			1,270,162			1,250,500			1,275,753			1,242,629

Per Share of Common Stock
Book Value	$	32.00		$	31.61		$	29.98		$	32.00		$	29.98
Tangible Book Value	31.22			30.83			29.22			31.22			29.22
Market Value
Closing	85.93			82.91			78.91			85.93			78.91
High	88.20			84.53			86.53			88.20			89.09
Low	79.13			75.24			78.30			66.54			78.30

				September 30,			June 30,			December 31,			September 30,
				2019			2019			2018			2018
As of Period End:
Balance Sheet Totals
Loans and Leases				$	10,881,298		$	10,759,129		$	10,448,774		$	10,231,062
Total Assets				17,672,140			17,688,845			17,143,974			16,991,734
Total Deposits				15,340,752			15,488,821			15,027,242			14,843,335
Other Debt				110,585			110,605			135,643			185,662
Total Shareholders' Equity				1,291,490			1,285,948			1,268,200			1,253,327

Asset Quality
Non-Performing Assets				$	21,645		$	21,782		$	12,930		$	13,798
Allowance for Loan and Lease Losses				108,936			107,672			106,693			108,690
Allowance to Loans and Leases Outstanding				1.00		%	1.00		%	1.02		%	1.06		%

Capital Ratios
Common Equity Tier 1 Capital Ratio				12.33		%	12.46		%	13.07		%	13.20		%
Tier 1 Capital Ratio				12.33			12.46			13.07			13.20
Total Capital Ratio				13.44			13.57			14.21			14.38
Tier 1 Leverage Ratio				7.32			7.36			7.60			7.55
Total Shareholders' Equity to Total Assets				7.31			7.27			7.40			7.38
Tangible Common Equity to Tangible Assets ⁴				7.14			7.10			7.23			7.20
Tangible Common Equity to Risk-Weighted Assets⁴				12.10			12.17			12.52			12.56

Non-Financial Data
Full-Time Equivalent Employees				2,124			2,152			2,122			2,143
Branches				67			68			69			69
ATMs				379			383			382			382

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 share divided by basic earnings per share.
⁴ Tangible 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: Common Equity Tier 1 and Tier 1 Capital Ratios were revised from 13.19% and Tangible Common Equity to Risk-Weighted Assets was revised from 12.55% as of September 30, 2018.


Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures																						Table 2
		September 30,					June 30,					December 31,					September 30,
(dollars in thousands)				2019					2019					2018					2018

Total Shareholders' Equity				$	1,291,490				$	1,285,948				$	1,268,200				$	1,253,327
Less:	Goodwill	31,517					31,517					31,517					31,517
Tangible Common Equity				$	1,259,973				$	1,254,431				$	1,236,683				$	1,221,810

Total Assets				$	17,672,140				$	17,688,845				$	17,143,974				$	16,991,734
Less:	Goodwill	31,517					31,517					31,517					31,517
Tangible Assets				$	17,640,623				$	17,657,328				$	17,112,457				$	16,960,217

Risk-Weighted Assets, determined in accordance
	with prescribed regulatory requirements	$	10,416,560				$	10,309,085				$	9,878,904				$	9,731,082

Total Shareholders' Equity to Total Assets				7.31		%			7.27		%			7.40		%			7.38		%
Tangible Common Equity to Tangible Assets (Non-GAAP)				7.14		%			7.10		%			7.23		%			7.20		%

Tier 1 Capital Ratio				12.33		%			12.46		%			13.07		%			13.20		%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)				12.10		%			12.17		%			12.52		%			12.56		%


Note: Risk-Weighted Assets was revised from $9,732,618, Tier 1 Capital Ratio was revised from 13.19%, and Tangible Common Equity to Risk-Weighted Assets
was revised from 12.55% as of September 30, 2018.


Bank of Hawaii 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)	2019		2019		2018		2019		2018
Interest Income
Interest and Fees on Loans and Leases	$	110,877	$	110,401	$	104,248	$	329,789	$	303,193
Income on Investment Securities
Available-for-Sale	17,512		15,072		12,588		46,016		37,109
Held-to-Maturity	18,796		22,149		20,821		62,866		62,828
Deposits	9		9		10		33		24
Funds Sold	656		730		1,393		2,830		2,996
Other	233		210		364		762		1,005
Total Interest Income	148,083		148,571		139,424		442,296		407,155
Interest Expense
Deposits	18,055		18,628		10,931		51,967		27,971
Securities Sold Under Agreements to Repurchase	4,257		4,623		4,667		13,451		13,848
Funds Purchased	146		512		33		815		169
Short-Term Borrowings	1		1		28		38		57
Other Debt	728		710		838		2,195		2,731
Total Interest Expense	23,187		24,474		16,497		68,466		44,776
Net Interest Income	124,896		124,097		122,927		373,830		362,379
Provision for Credit Losses	4,250		4,000		3,800		11,250		11,425
Net Interest Income After Provision for Credit Losses	120,646		120,097		119,127		362,580		350,954
Noninterest Income
Trust and Asset Management	10,930		11,385		10,782		33,076		33,319
Mortgage Banking	4,864		3,336		1,965		10,487		6,289
Service Charges on Deposit Accounts	7,592		7,283		7,255		22,239		21,249
Fees, Exchange, and Other Service Charges	14,900		14,252		14,173		43,360		42,906
Investment Securities Gains (Losses), Net	(1,469)		(776)		(729)		(3,080)		(3,097)
Annuity and Insurance	1,278		1,806		1,360		5,662		4,413
Bank-Owned Life Insurance	1,647		1,779		1,620		5,136		5,258
Other	6,765		6,385		5,056		18,756		16,478
Total Noninterest Income	46,507		45,450		41,482		135,636		126,815
Noninterest Expense
Salaries and Benefits	54,345		53,511		51,782		164,442		158,352
Net Occupancy	8,803		8,579		8,702		24,976		25,824
Net Equipment	7,637		6,895		6,116		21,365		17,488
Data Processing	4,676		4,727		4,241		13,929		12,695
Professional Fees	2,184		2,177		2,206		6,814		7,525
FDIC Insurance	1,257		1,290		2,057		3,816		6,396
Other	21,447		15,546		15,434		50,789		47,433
Total Noninterest Expense	100,349		92,725		90,538		286,131		275,713
Income Before Provision for Income Taxes	66,804		72,822		70,071		212,085		202,056
Provision for Income Taxes	14,752		15,903		13,138		44,315		36,365
Net Income	$	52,052	$	56,919	$	56,933	$	167,770	$	165,691
Basic Earnings Per Share	$	1.30	$	1.40	$	1.37	$	4.14	$	3.96
Diluted Earnings Per Share	$	1.29	$	1.40	$	1.36	$	4.11	$	3.93
Dividends Declared Per Share	$	0.65	$	0.65	$	0.60	$	1.92	$	1.72
Basic Weighted Average Shares	40,190,508		40,541,594		41,620,776		40,554,036		41,846,080
Diluted Weighted Average Shares	40,450,742		40,769,767		41,899,401		40,806,295		42,133,776


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income														Table 4
		Three Months Ended										Nine Months Ended
		September 30,	June 30,		September 30,				September 30,
(dollars in thousands)			2019		2019		2018			2019		2018
Net Income			$	52,052	$	56,919	$	56,933		$	167,770	$	165,691
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities	5,405	16,209		(5,599)				28,533	(17,694)
	Defined Benefit Plans	245	245		216				736	648
Other Comprehensive Income (Loss)			5,650		16,454		(5,383)			29,269		(17,046)
Comprehensive Income			$	57,702	$	73,373	$	51,550		$	197,039	$	148,645


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition							Table 5
	September 30,		June 30,		December 31,		September 30,
(dollars in thousands)	2019		2019		2018		2018
Assets
Interest-Bearing Deposits in Other Banks	$	2,946	$	3,859	$	3,028	$	3,725
Funds Sold	108,446		204,340		198,860		104,199
Investment Securities
Available-for-Sale	2,594,394		2,649,949		2,007,942		2,049,687
Held-to-Maturity (Fair Value of $2,972,273; $2,973,229; $3,413,994; and $3,549,235)	2,946,910		2,959,611		3,482,092		3,664,487
Loans Held for Sale	36,720		22,706		10,987		18,063
Loans and Leases	10,881,298		10,759,129		10,448,774		10,231,062
Allowance for Loan and Lease Losses	(108,936)		(107,672)		(106,693)		(108,690)
Net Loans and Leases	10,772,362		10,651,457		10,342,081		10,122,372
Total Earning Assets	16,461,778		16,491,922		16,044,990		15,962,533
Cash and Due from Banks	259,492		282,164		324,081		227,049
Premises and Equipment, Net	179,453		169,671		151,837		142,928
Operating Lease Right-of-Use Assets	101,005		103,336		—		—
Accrued Interest Receivable	47,897		49,726		51,230		54,839
Foreclosed Real Estate	2,939		2,737		1,356		1,909
Mortgage Servicing Rights	24,408		24,233		24,310		24,463
Goodwill	31,517		31,517		31,517		31,517
Bank-Owned Life Insurance	286,936		285,295		283,771		282,637
Other Assets	276,715		248,244		230,882		263,859
Total Assets	$	17,672,140	$	17,688,845	$	17,143,974	$	16,991,734

Liabilities
Deposits
Noninterest-Bearing Demand	$	4,392,706	$	4,528,251	$	4,739,596	$	4,678,981
Interest-Bearing Demand	3,000,865		3,033,066		3,002,925		2,975,069
Savings	6,141,098		6,004,528		5,539,199		5,444,053
Time	1,806,083		1,922,976		1,745,522		1,745,232
Total Deposits	15,340,752		15,488,821		15,027,242		14,843,335
Short-Term Borrowings	—		—		199		629
Securities Sold Under Agreements to Repurchase	604,299		504,299		504,296		504,293
Other Debt	110,585		110,605		135,643		185,662
Operating Lease Liabilities	108,264		110,483		—		—
Retirement Benefits Payable	39,682		40,047		40,494		36,288
Accrued Interest Payable	8,435		9,454		8,253		7,689
Taxes Payable and Deferred Taxes	21,089		21,337		19,736		15,549
Other Liabilities	147,544		117,851		139,911		144,962
Total Liabilities	16,380,650		16,402,897		15,875,774		15,738,407
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: September 30, 2019 - 58,176,305 / 40,359,259;
June 30, 2019 - 58,175,367 / 40,687,719; December 31, 2018 - 58,063,689 / 41,499,898;
and September 30, 2018 - 58,070,578 / 41,809,551)	579		579		577		577
Capital Surplus	580,200		577,346		571,704		569,223
Accumulated Other Comprehensive Loss	(21,774)		(27,424)		(51,043)		(59,238)
Retained Earnings	1,730,437		1,704,993		1,641,314		1,612,998
Treasury Stock, at Cost (Shares: September 30, 2019 - 17,817,046; June 30, 2019 - 17,487,648;
December 31, 2018 - 16,563,791; and September 30, 2018 - 16,261,027)	(997,952)		(969,546)		(894,352)		(870,233)
Total Shareholders' Equity	1,291,490		1,285,948		1,268,200		1,253,327
Total Liabilities and Shareholders' Equity	$	17,672,140	$	17,688,845	$	17,143,974	$	16,991,734


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			—	—		—		—		167,770		—		167,770
Other Comprehensive Income			—	—		—		29,269		—		—		29,269
Share-Based Compensation			—	—		6,662		—		—		—		6,662
Common Stock Issued under Purchase and Equity
	Compensation Plans	200,984	2	1,834		—		(109)		4,275		6,002
Common Stock Repurchased			(1,341,623)	—		—		—		—		(107,875)		(107,875)
Cash Dividends Declared ($1.92 per share)			—	—		—		—		(78,538)		—		(78,538)
Balance as of September 30, 2019			40,359,259	$	579	$	580,200	$	(21,774)	$	1,730,437	$	(997,952)	$	1,291,490

Balance as of December 31, 2017			42,401,443	$	576	$	561,161	$	(34,715)	$	1,512,218	$	(807,372)	$	1,231,868
Net Income			—	—		—		—		165,691		—		165,691
Other Comprehensive Loss			—	—		—		(17,046)		—		—		(17,046)
Reclassification of the Income Tax Effects of the
	Tax Cuts and Jobs Act from AOCI	—	—	—		(7,477)		7,477		—		—
Share-Based Compensation			—	—		6,208		—		—		—		6,208
Common Stock Issued under Purchase and Equity
	Compensation Plans	203,289	1	1,854		—		251		4,127		6,233
Common Stock Repurchased			(795,181)	—		—		—		—		(66,988)		(66,988)
Cash Dividends Declared ($1.72 per share)			—	—		—		—		(72,639)		—		(72,639)
Balance as of September 30, 2018			41,809,551	$	577	$	569,223	$	(59,238)	$	1,612,998	$	(870,233)	$	1,253,327


Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																								Table 7a
		Three Months Ended											Three Months Ended										Three Months Ended
		September 30, 2019											June 30, 2019										September 30, 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				$	3.1	$	—	1.19	%		$	2.9	$	—	1.25	%		$	3.6	$	—	1.09	%
Funds Sold				121.1		0.7		2.12			123.6		0.8		2.34			281.9		1.4		1.93
Investment Securities
	Available-for-Sale
	Taxable	2,647.9		17.1		2.59			2,004.3		14.3		2.87			1,512.1		9.5		2.51
	Non-Taxable	42.6		0.5		4.45			86.8		0.9		4.15			567.5		3.9		2.75
	Held-to-Maturity
	Taxable	2,873.7		18.5		2.57			3,358.0		21.0		2.50			3,413.7		19.3		2.26
	Non-Taxable	65.2		0.4		2.72			193.0		1.5		3.08			236.1		1.9		3.16
Total Investment Securities				5,629.4		36.5		2.59			5,642.1		37.7		2.68			5,729.4		34.6		2.41
Loans Held for Sale				24.3		0.2		3.94			18.7		0.2		4.05			14.9		0.2		4.45
Loans and Leases ¹
	Commercial and Industrial	1,383.8		14.4		4.14			1,385.7		14.9		4.31			1,279.4		13.0		4.04
	Commercial Mortgage	2,423.7		26.2		4.28			2,386.3		25.9		4.35			2,180.5		23.0		4.19
	Construction	126.0		1.6		5.10			125.3		1.7		5.51			187.0		2.2		4.65
	Commercial Lease Financing	161.8		1.0		2.57			159.9		1.0		2.49			175.0		1.0		2.30
	Residential Mortgage	3,809.6		36.5		3.83			3,730.4		36.0		3.87			3,563.5		34.0		3.82
	Home Equity	1,689.2		16.1		3.79			1,694.9		16.2		3.83			1,622.4		15.7		3.83
	Automobile	707.0		6.4		3.59			688.5		6.2		3.62			606.3		5.9		3.84
	Other ²	469.6		8.5		7.16			460.6		8.4		7.33			467.8		9.3		7.90
Total Loans and Leases				10,770.7		110.7		4.09			10,631.6		110.3		4.16			10,081.9		104.1		4.11
Other				35.0		0.3		2.66			35.0		0.2		2.40			38.9		0.4		3.74
Total Earning Assets³				16,583.6		148.4		3.56			16,453.9		149.2		3.63			16,150.6		140.7		3.47
Cash and Due from Banks				231.5							241.6							252.1
Other Assets				790.3							785.2							612.6
Total Assets				$	17,605.4						$	17,480.7						$	17,015.3

Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,950.2	1.1		0.15			$	2,902.5	1.4		0.19			$	2,999.5	1.3		0.17
	Savings	6,122.0		8.8		0.57			6,002.0		8.9		0.60			5,482.4		3.8		0.28
	Time	1,851.0		8.2		1.75			1,866.6		8.3		1.79			1,683.0		5.8		1.37
Total Interest-Bearing Deposits				10,923.2		18.1		0.66			10,771.1		18.6		0.69			10,164.9		10.9		0.43
Short-Term Borrowings				27.1		0.1		2.13			82.3		0.5		2.46			11.6		0.1		2.06
Securities Sold Under Agreements to Repurchase				513.8		4.3		3.24			504.3		4.7		3.63			504.3		4.7		3.62
Other Debt				110.6		0.7		2.62			110.6		0.7		2.57			208.5		0.8		1.60
Total Interest-Bearing Liabilities				11,574.7		23.2		0.79			11,468.3		24.5		0.85			10,889.3		16.5		0.60
Net Interest Income						$	125.2						$	124.7						$	124.2
	Interest Rate Spread					2.77		%					2.78		%					2.87		%
	Net Interest Margin					3.01		%					3.04		%					3.07		%
Noninterest-Bearing Demand Deposits				4,407.5							4,391.7							4,655.6
Other Liabilities				333.8							350.5							219.9
Shareholders' Equity				1,289.4							1,270.2							1,250.5
Total Liabilities and Shareholders' Equity				$	17,605.4						$	17,480.7						$	17,015.3


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.
²Comprised 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 $296,000, $601,000, and $1,265,000
	for the three months ended September 30, 2019, June 30, 2019, and September 30, 2018, respectively.


Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																	Table 7b
		Nine Months Ended											Nine Months Ended
		September 30, 2019											September 30, 2018
		Average		Income/		Yield/			Average		Income/		Yield/
(dollars in millions)				Balance		Expense		Rate			Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks				$	3.0	$	—	1.49	%		$	3.2	$	—	0.99	%
Funds Sold				161.7		2.8		2.31			224.3		3.0		1.76
Investment Securities
	Available-for-Sale
	Taxable	2,086.5		43.0		2.75			1,556.9		27.6		2.36
	Non-Taxable	135.3		3.8		3.73			585.1		12.1		2.76
	Held-to-Maturity
	Taxable	3,199.9		59.9		2.50			3,504.8		58.4		2.22
	Non-Taxable	163.5		3.8		3.08			237.0		5.6		3.17
Total Investment Securities				5,585.2		110.5		2.64			5,883.8		103.7		2.35
Loans Held for Sale				18.5		0.6		4.06			14.6		0.5		4.23
Loans and Leases¹
	Commercial and Industrial	1,375.9		44.6		4.33			1,289.3		37.6		3.90
	Commercial Mortgage	2,373.9		76.9		4.33			2,133.8		65.5		4.10
	Construction	133.8		5.2		5.22			186.6		6.5		4.64
	Commercial Lease Financing	160.9		3.0		2.45			178.0		3.0		2.25
	Residential Mortgage	3,740.5		108.0		3.85			3,523.1		100.9		3.82
	Home Equity	1,691.4		48.4		3.83			1,610.2		45.4		3.77
	Automobile	688.0		18.6		3.62			574.1		17.1		3.99
	Other ²	459.9		24.8		7.21			455.4		26.9		7.89
Total Loans and Leases				10,624.3		329.5		4.14			9,950.5		302.9		4.07
Other				35.2		0.8		2.89			39.8		1.0		3.37
Total Earning Assets ³				16,427.9		444.2		3.61			16,116.2		411.1		3.41
Cash and Due from Banks				237.9							244.0
Other Assets				776.3							604.9
Total Assets				$	17,442.1						$	16,965.1

Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,930.9	4.0		0.18			$	2,982.5	3.2		0.15
	Savings	5,962.9		24.4		0.55			5,414.1		9.1		0.22
	Time	1,807.6		23.6		1.75			1,700.6		15.7		1.23
Total Interest-Bearing Deposits				10,701.4		52.0		0.65			10,097.2		28.0		0.37
Short-Term Borrowings				46.8		0.9		2.40			17.2		0.2		1.73
Securities Sold Under Agreements to Repurchase				507.5		13.4		3.50			504.9		13.9		3.62
Other Debt				113.7		2.2		2.58			233.6		2.7		1.56
Total Interest-Bearing Liabilities				11,369.4		68.5		0.80			10,852.9		44.8		0.55
Net Interest Income						$	375.7						$	366.3
	Interest Rate Spread					2.81		%					2.86		%
	Net Interest Margin					3.05		%					3.04		%
Noninterest-Bearing Demand Deposits				4,454.9							4,653.2
Other Liabilities				342.0							216.4
Shareholders' Equity				1,275.8							1,242.6
Total Liabilities and Shareholders' Equity				$	17,442.1						$	16,965.1


¹Non-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 $1,878,000 and $3,907,000
	for the nine months ended September 30, 2019 and September 30, 2018, respectively.


Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended September 30, 2019
	Compared to June 30, 2019
(dollars in millions)	Volume ¹		Rate ¹		Total
Change in Interest Income:
Funds Sold	$	—	$	(0.1)	$	(0.1)
Investment Securities
Available-for-Sale
Taxable	4.3		(1.5)		2.8
Non-Taxable	(0.5)		0.1		(0.4)
Held-to-Maturity
Taxable	(3.0)		0.5		(2.5)
Non-Taxable	(0.9)		(0.2)		(1.1)
Total Investment Securities	(0.1)		(1.1)		(1.2)
Loans and Leases
Commercial and Industrial	(0.1)		(0.4)		(0.5)
Commercial Mortgage	0.6		(0.3)		0.3
Construction	—		(0.1)		(0.1)
Residential Mortgage	0.8		(0.3)		0.5
Home Equity	—		(0.1)		(0.1)
Automobile	0.2		—		0.2
Other ²	0.2		(0.1)		0.1
Total Loans and Leases	1.7		(1.3)		0.4
Other	—		0.1		0.1
Total Change in Interest Income	1.6		(2.4)		(0.8)

Change in Interest Expense:
Interest-Bearing Deposits
Demand	—		(0.3)		(0.3)
Savings	0.2		(0.3)		(0.1)
Time	—		(0.1)		(0.1)
Total Interest-Bearing Deposits	0.2		(0.7)		(0.5)
Short-Term Borrowings	(0.3)		(0.1)		(0.4)
Securities Sold Under Agreements to Repurchase	0.1		(0.5)		(0.4)
Total Change in Interest Expense	—		(1.3)		(1.3)

Change in Net Interest Income	$	1.6	$	(1.1)	$	0.5


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 September 30, 2019
	Compared to September 30, 2018
(dollars in millions)	Volume ¹		Rate ¹		Total
Change in Interest Income:
Funds Sold	$	(0.9)	$	0.2	$	(0.7)
Investment Securities
Available-for-Sale
Taxable	7.3		0.3		7.6
Non-Taxable	(4.9)		1.5		(3.4)
Held-to-Maturity
Taxable	(3.2)		2.4		(0.8)
Non-Taxable	(1.3)		(0.2)		(1.5)
Total Investment Securities	(2.1)		4.0		1.9
Loans Held for Sale	0.1		(0.1)		—
Loans and Leases
Commercial and Industrial	1.1		0.3		1.4
Commercial Mortgage	2.6		0.6		3.2
Construction	(0.8)		0.2		(0.6)
Commercial Lease Financing	(0.1)		0.1		—
Residential Mortgage	2.4		0.1		2.5
Home Equity	0.6		(0.2)		0.4
Automobile	0.9		(0.4)		0.5
Other ²	0.1		(0.9)		(0.8)
Total Loans and Leases	6.8		(0.2)		6.6
Other	—		(0.1)		(0.1)
Total Change in Interest Income	3.9		3.8		7.7

Change in Interest Expense:
Interest-Bearing Deposits
Demand	—		(0.2)		(0.2)
Savings	0.5		4.5		5.0
Time	0.6		1.8		2.4
Total Interest-Bearing Deposits	1.1		6.1		7.2
Securities Sold Under Agreements to Repurchase	0.1		(0.5)		(0.4)
Other Debt	(0.5)		0.4		(0.1)
Total Change in Interest Expense	0.7		6.0		6.7

Change in Net Interest Income	$	3.2	$	(2.2)	$	1.0


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.
²Comprised 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 8c
	Nine Months Ended September 30, 2019
	Compared to September 30, 2018
(dollars in millions)	Volume ¹		Rate ¹		Total
Change in Interest Income:
Funds Sold	$	(1.0)	$	0.8	$	(0.2)
Investment Securities
Available-for-Sale
Taxable	10.4		5.0		15.4
Non-Taxable	(11.5)		3.2		(8.3)
Held-to-Maturity
Taxable	(5.3)		6.8		1.5
Non-Taxable	(1.7)		(0.1)		(1.8)
Total Investment Securities	(8.1)		14.9		6.8
Loans Held for Sale	0.1		—		0.1
Loans and Leases
Commercial and Industrial	2.6		4.4		7.0
Commercial Mortgage	7.6		3.8		11.4
Construction	(2.0)		0.7		(1.3)
Commercial Lease Financing	(0.3)		0.3		—
Residential Mortgage	6.3		0.8		7.1
Home Equity	2.3		0.7		3.0
Automobile	3.2		(1.7)		1.5
Other²	0.3		(2.4)		(2.1)
Total Loans and Leases	20.0		6.6		26.6
Other	(0.1)		(0.1)		(0.2)
Total Change in Interest Income	10.9		22.2		33.1

Change in Interest Expense:
Interest-Bearing Deposits
Demand	—		0.8		0.8
Savings	1.0		14.3		15.3
Time	1.0		6.9		7.9
Total Interest-Bearing Deposits	2.0		22.0		24.0
Short-Term Borrowings	0.5		0.2		0.7
Securities Sold Under Agreements to Repurchase	0.1		(0.6)		(0.5)
Other Debt	(1.8)		1.3		(0.5)
Total Change in Interest Expense	0.8		22.9		23.7

Change in Net Interest Income	$	10.1	$	(0.7)	$	9.4


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.
²Comprised of other consumer revolving credit, installment, and consumer lease financing.


Bank of Hawaii 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)	2019		2019		2018		2019		2018
Salaries	$	33,458	$	32,834	$	33,308	$	98,772	$	99,281
Incentive Compensation	5,681		5,464		5,378		17,049		14,972
Share-Based Compensation	2,025		1,994		2,153		7,098		6,657
Commission Expense	1,760		1,704		1,034		4,394		3,260
Retirement and Other Benefits	4,185		4,580		3,925		13,872		12,944
Payroll Taxes	2,519		2,643		2,372		9,409		9,112
Medical, Dental, and Life Insurance	3,908		3,926		3,616		12,299		10,897
Separation Expense	809		366		(4)		1,549		1,229
Total Salaries and Benefits	$	54,345	$	53,511	$	51,782	$	164,442	$	158,352


Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances														Table 10
		September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)				2019		2019		2019		2018		2018
Commercial
	Commercial and Industrial	$	1,361,011	$	1,408,729	$	1,331,345	$	1,331,149	$	1,314,609
	Commercial Mortgage	2,477,296		2,411,289		2,381,213		2,302,356		2,237,020
	Construction	154,754		119,228		132,775		170,061		176,447
	Lease Financing	163,672		163,070		154,919		176,226		172,232
Total Commercial				4,156,733		4,102,316		4,000,252		3,979,792		3,900,308
Consumer
	Residential Mortgage	3,846,511		3,785,006		3,702,553		3,673,796		3,596,627
	Home Equity	1,681,951		1,694,577		1,698,666		1,681,442		1,625,208
	Automobile	713,424		703,523		676,730		658,133		625,086
	Other ¹	482,679		473,707		470,408		455,611		483,833
Total Consumer				6,724,565		6,656,813		6,548,357		6,468,982		6,330,754
Total Loans and Leases				$	10,881,298	$	10,759,129	$	10,548,609	$	10,448,774	$	10,231,062


Deposits
		September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)				2019		2019		2019		2018		2018
Consumer				$	7,893,454	$	7,880,284	$	7,944,793	$	7,726,731	$	7,627,527
Commercial				6,153,492		6,178,984		6,162,042		6,098,186		5,967,343
Public and Other				1,293,806		1,429,553		1,160,475		1,202,325		1,248,465
Total Deposits				$	15,340,752	$	15,488,821	$	15,267,310	$	15,027,242	$	14,843,335


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
			September 30,		June 30,			March 31,			December 31,			September 30,
(dollars in thousands)								2019			2019			2019			2018			2018
Non-Performing Assets
Non-Accrual Loans and Leases
	Commercial
		Commercial and Industrial	$	573	$	552		$	393		$	542		$	1,205
		Commercial Mortgage	11,088		11,310			5,911			2,040			652
	Total Commercial				11,661			11,862			6,304			2,582			1,857
	Consumer
		Residential Mortgage	4,258		4,697			5,599			5,321			6,359
		Home Equity	2,787		2,486			2,797			3,671			3,673
	Total Consumer				7,045			7,183			8,396			8,992			10,032
Total Non-Accrual Loans and Leases								18,706			19,045			14,700			11,574			11,889
Foreclosed Real Estate								2,939			2,737			3,225			1,356			1,909
Total Non-Performing Assets								$	21,645		$	21,782		$	17,925		$	12,930		$	13,798

Accruing Loans and Leases Past Due 90 Days or More
Commercial
	Commercial and Industrial				$	81		$	—		$	66		$	10		$	—
Total Commercial								81			—			66			10			—
Consumer
	Residential Mortgage				$	2,032		$	1,859		$	903		$	2,446		$	2,426
	Home Equity				2,320			2,981			3,381			2,684			3,112
	Automobile				582			607			734			513			829
	Other ¹				1,076			963			1,033			914			1,727
Total Consumer								6,010			6,410			6,051			6,557			8,094
Total Accruing Loans and Leases Past Due 90 Days or More								$	6,091		$	6,410		$	6,117		$	6,567		$	8,094
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More								$	46,178		$	48,563		$	48,571		$	48,731		$	49,462
Total Loans and Leases								$	10,881,298		$	10,759,129		$	10,548,609		$	10,448,774		$	10,231,062

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases								0.17		%	0.18		%	0.14		%	0.11		%	0.12		%

Ratio of Non-Performing Assets to Total Loans and Leases
	and Foreclosed Real Estate				0.20		%	0.20		%	0.17		%	0.12		%	0.13		%

Ratio of Commercial Non-Performing Assets to Total Commercial Loans
	and Leases and Commercial Foreclosed Real Estate				0.28		%	0.29		%	0.16		%	0.06		%	0.05		%

Ratio of Consumer Non-Performing Assets to Total Consumer Loans
	and Leases and Consumer Foreclosed Real Estate				0.15		%	0.15		%	0.18		%	0.16		%	0.19		%

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				0.25		%	0.26		%	0.23		%	0.19		%	0.21		%

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter								$	21,782		$	17,925		$	12,930		$	13,798		$	15,157
Additions								1,035			6,186			8,217			4,509			2,030
Reductions
	Payments				(984)			(441)			(989)			(3,759)			(415)
	Return to Accrual Status				—			(1,344)			(316)			(605)			(1,420)
	Sales of Foreclosed Real Estate				—			(374)			—			(653)			(1,301)
	Charge-offs/Write-downs				(188)			(170)			(1,917)			(360)			(253)
Total Reductions								(1,172)			(2,329)			(3,222)			(5,377)			(3,389)
Balance at End of Quarter								$	21,645		$	21,782		$	17,925		$	12,930		$	13,798

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


Bank of Hawaii 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)						2019			2019			2018					2019			2018
Balance at Beginning of Period						$	114,494		$	112,845		$	115,010				$	113,515		$	114,168
Loans and Leases Charged-Off
	Commercial
		Commercial and Industrial	(239)	(206)		(449)						(815)			(1,140)
		Commercial Mortgage	—	—		—						(1,616)			—
	Consumer
		Residential Mortgage	(7)	(51)		—						(62)			(100)
		Home Equity	(215)	(145)		(124)						(655)			(259)
		Automobile	(1,696)	(1,691)		(2,114)						(5,140)			(5,883)
		Other ¹	(3,598)	(3,036)		(3,340)						(9,424)			(10,294)
Total Loans and Leases Charged-Off						(5,755)			(5,129)			(6,027)					(17,712)			(17,676)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
		Commercial and Industrial	318	401		542						1,220			1,236
	Consumer
		Residential Mortgage	649	95		261						1,228			695
		Home Equity	428	746		558						1,762			1,634
		Automobile	660	908		616						2,449			1,953
		Other ¹	714	628		752						2,046			2,077
Total Recoveries on Loans and Leases Previously Charged-Off						2,769			2,778			2,729					8,705			7,595
Net Loans and Leases Charged-Off						(2,986)			(2,351)			(3,298)					(9,007)			(10,081)
Provision for Credit Losses						4,250			4,000			3,800					11,250			11,425

Balance at End of Period ²						$	115,758		$	114,494		$	115,512				$	115,758		$	115,512

Components
Allowance for Loan and Lease Losses						$	108,936		$	107,672		$	108,690				$	108,936		$	108,690
Reserve for Unfunded Commitments						6,822			6,822			6,822					6,822			6,822
Total Reserve for Credit Losses						$	115,758		$	114,494		$	115,512				$	115,758		$	115,512

Average Loans and Leases Outstanding						$	10,770,720		$	10,631,558		$	10,081,886				$	10,624,311		$	9,950,518

Ratio of Net Loans and Leases Charged-Off to
	Average Loans and Leases Outstanding (annualized)			0.11	%	0.09		%	0.13		%				0.11	%	0.14		%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding						1.00		%	1.00		%	1.06		%			1.00		%	1.06		%

¹ Comprised of other revolving credit, installment, and lease financing.
²Included 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 13a
					Investment
					Services and
	Retail		Commercial		Private		Treasury		Consolidated
(dollars in thousands)	Banking		Banking		Banking		and Other		Total
Three Months Ended September 30, 2019
Net Interest Income	$	66,648	$	46,791	$	9,641	$	1,816	$	124,896
Provision for Credit Losses	3,084		(130)		32		1,264		4,250
Net Interest Income After Provision for Credit Losses	63,564		46,921		9,609		552		120,646
Noninterest Income	22,964		8,739		13,663		1,141		46,507
Noninterest Expense	(59,358)		(21,330)		(15,840)		(3,821)		(100,349)
Income Before Provision for Income Taxes	27,170		34,330		7,432		(2,128)		66,804
Provision for Income Taxes	(6,547)		(8,560)		(1,959)		2,314		(14,752)
Net Income	$	20,623	$	25,770	$	5,473	$	186	$	52,052
Total Assets as of September 30, 2019	$	6,668,902	$	4,145,717	$	324,388	$	6,533,133	$	17,672,140


Three Months Ended September 30, 2018
Net Interest Income	$	66,927	$	46,240	$	10,574	$	(814)	$	122,927
Provision for Credit Losses	3,229		69		—		502		3,800
Net Interest Income After Provision for Credit Losses	63,698		46,171		10,574		(1,316)		119,127
Noninterest Income	19,814		6,241		13,526		1,901		41,482
Noninterest Expense	(51,806)		(20,242)		(15,657)		(2,833)		(90,538)
Income Before Provision for Income Taxes	31,706		32,170		8,443		(2,248)		70,071
Provision for Income Taxes	(7,943)		(7,218)		(2,226)		4,249		(13,138)
Net Income	$	23,763	$	24,952	$	6,217	$	2,001	$	56,933
Total Assets as of September 30, 2018	$	6,246,126	$	3,873,454	$	340,793	$	6,531,361	$	16,991,734


Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information											Table 13b
					Investment
					Services and
	Retail		Commercial		Private		Treasury		Consolidated
(dollars in thousands)	Banking		Banking		Banking		and Other		Total
Nine Months Ended September 30, 2019
Net Interest Income	$	200,019	$	139,784	$	29,685	$	4,342	$	373,830
Provision for Credit Losses	7,852		1,141		14		2,243		11,250
Net Interest Income After Provision for Credit Losses	192,167		138,643		29,671		2,099		362,580
Noninterest Income	65,305		22,738		41,767		5,826		135,636
Noninterest Expense	(163,968)		(63,545)		(49,200)		(9,418)		(286,131)
Income Before Provision for Income Taxes	93,504		97,836		22,238		(1,493)		212,085
Provision for Income Taxes	(22,883)		(22,507)		(5,862)		6,937		(44,315)
Net Income	$	70,621	$	75,329	$	16,376	$	5,444	$	167,770
Total Assets as of September 30, 2019	$	6,668,902	$	4,145,717	$	324,388	$	6,533,133	$	17,672,140


Nine Months Ended September 30, 2018
Net Interest Income	$	197,007	$	133,148	$	30,987	$	1,237	$	362,379
Provision for Credit Losses	10,417		(276)		(60)		1,344		11,425
Net Interest Income After Provision for Credit Losses	186,590		133,424		31,047		(107)		350,954
Noninterest Income	58,665		17,395		41,941		8,814		126,815
Noninterest Expense	(158,344)		(60,432)		(48,264)		(8,673)		(275,713)
Income Before Provision for Income Taxes	86,911		90,387		24,724		34		202,056
Provision for Income Taxes	(21,707)		(20,782)		(6,518)		12,642		(36,365)
Net Income	$	65,204	$	69,605	$	18,206	$	12,676	$	165,691
Total Assets as of September 30, 2018	$	6,246,126	$	3,873,454	$	340,793	$	6,531,361	$	16,991,734


Bank of Hawaii 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)	2019			2019			2019			2018			2018
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	110,877		$	110,401		$	108,511		$	107,404		$	104,248
Income on Investment Securities
Available-for-Sale	17,512			15,072			13,432			13,043			12,588
Held-to-Maturity	18,796			22,149			21,921			21,482			20,821
Deposits	9			9			15			10			10
Funds Sold	656			730			1,444			727			1,393
Other	233			210			319			352			364
Total Interest Income	148,083			148,571			145,642			143,018			139,424
Interest Expense
Deposits	18,055			18,628			15,284			13,172			10,931
Securities Sold Under Agreements to Repurchase	4,257			4,623			4,571			4,671			4,667
Funds Purchased	146			512			157			440			33
Short-Term Borrowings	1			1			36			88			28
Other Debt	728			710			757			674			838
Total Interest Expense	23,187			24,474			20,805			19,045			16,497
Net Interest Income	124,896			124,097			124,837			123,973			122,927
Provision for Credit Losses	4,250			4,000			3,000			2,000			3,800
Net Interest Income After Provision for Credit Losses	120,646			120,097			121,837			121,973			119,127
Noninterest Income
Trust and Asset Management	10,930			11,385			10,761			10,558			10,782
Mortgage Banking	4,864			3,336			2,287			2,148			1,965
Service Charges on Deposit Accounts	7,592			7,283			7,364			7,562			7,255
Fees, Exchange, and Other Service Charges	14,900			14,252			14,208			14,576			14,173
Investment Securities Gains (Losses), Net	(1,469)			(776)			(835)			(841)			(729)
Annuity and Insurance	1,278			1,806			2,578			1,409			1,360
Bank-Owned Life Insurance	1,647			1,779			1,710			1,941			1,620
Other	6,765			6,385			5,606			4,755			5,056
Total Noninterest Income	46,507			45,450			43,679			42,108			41,482
Noninterest Expense
Salaries and Benefits	54,345			53,511			56,586			54,856			51,782
Net Occupancy	8,803			8,579			7,594			8,918			8,702
Net Equipment	7,637			6,895			6,833			6,364			6,116
Data Processing	4,676			4,727			4,526			5,151			4,241
Professional Fees	2,184			2,177			2,453			2,467			2,206
FDIC Insurance	1,257			1,290			1,269			1,336			2,057
Other	21,447			15,546			13,796			16,819			15,434
Total Noninterest Expense	100,349			92,725			93,057			95,911			90,538
Income Before Provision for Income Taxes	66,804			72,822			72,459			68,170			70,071
Provision for Income Taxes	14,752			15,903			13,660			14,259			13,138
Net Income	$	52,052		$	56,919		$	58,799		$	53,911		$	56,933

Basic Earnings Per Share	$	1.30		$	1.40		$	1.44		$	1.30		$	1.37
Diluted Earnings Per Share	$	1.29		$	1.40		$	1.43		$	1.30		$	1.36

Balance Sheet Totals
Loans and Leases	$	10,881,298		$	10,759,129		$	10,548,609		$	10,448,774		$	10,231,062
Total Assets	17,672,140			17,688,845			17,446,413			17,143,974			16,991,734
Total Deposits	15,340,752			15,488,821			15,267,310			15,027,242			14,843,335
Total Shareholders' Equity	1,291,490			1,285,948			1,269,690			1,268,200			1,253,327

Performance Ratios
Return on Average Assets	1.17		%	1.31		%	1.38		%	1.26		%	1.33		%
Return on Average Shareholders' Equity	16.02			17.97			18.81			17.05			18.06
Efficiency Ratio¹	58.55			54.69			55.22			57.75			55.07
Net Interest Margin ²	3.01			3.04			3.12			3.10			3.07


¹Efficiency 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
	Eight Months Ended						Year Ended
($ in millions; jobs in thousands)	August 31, 2019						December 31, 2018								December 31, 2017
Hawaii Economic Trends
State General Fund Revenues¹	$	4,972.8	6.3	%	$	6,933.1		6.9	%	$	6,485.0		4.3	%
General Excise and Use Tax Revenue ¹	$	2,442.7	6.3	%	$	3,426.5		2.3	%	$	3,349.8		4.5	%
Jobs²	643.1				660.0					664.5

								September 30,		December 31,
(spot rates)								2019		2018				2017
Unemployment ³
Statewide, seasonally adjusted								2.7	%	2.5		%	2.1	%

Oahu								2.6		2.2			1.7
Island of Hawaii								3.5		2.9			2.0
Maui								2.7		2.3			1.8
Kauai								2.7		2.3			1.7

					September 30,			December 31,
(percentage change, except months of inventory)							2019		2018			2017			2016
Housing Trends (Single Family Oahu)⁴
Median Home Price					(0.5)		%	4.6	%	2.7		%	5.0	%
Home Sales Volume (units)					0.8		%	(7.7)	%	6.3		%	6.5	%
Months of Inventory					3.5			2.8		2.1			2.5

					Monthly Visitor Arrivals,								Percentage Change
(in thousands)					Not Seasonally Adjusted								from Previous Year
Tourism ⁵
August 31, 2019								928.2					9.8
July 31, 2019								997.9					6.2
June 30, 2019								951.6					6.1
May 31, 2019								841.4					4.6
April 30, 2019								856.3					6.6
March 31, 2019								939.1					3.9
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								879.7					6.2
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
⁵Source: Hawaii Tourism Authority