SEC Filing | Bank of Hawaii Corporation

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boh-20200127

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Date of Report			January 27, 2020
(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 January 27, 2020, Bank of Hawaii Corporation announced its results of operations for the quarter ended December 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 January 27, 2020 Press Release: Bank of Hawaii Corporation Fourth 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: January 27, 2020	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 2019 Financial Results

•2019 Record Earnings of $5.56 Per Diluted Share

•2019 Net Income $225.9 Million

•Diluted Earnings Per Share $1.45 for the Fourth Quarter of 2019

•Net Income $58.1 Million for the Fourth Quarter of 2019

•Board of Directors Declares Dividend of $0.67 Per Share

•Board of Directors Increases Share Repurchase Authorization by $100 Million

FOR IMMEDIATE RELEASE

HONOLULU, HI (January 27, 2020) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $5.56 for the full year of 2019, an increase of 6.3 percent from diluted earnings per share of $5.23 in 2018. Net income for the year was $225.9 million, up $6.3 million or 2.9 percent from net income of $219.6 million in the previous year. The return on average assets for the full year of 2019 was 1.29 percent unchanged from 1.29 percent in 2018. The return on average equity for the full year of 2019 was 17.65 percent compared with 17.63 percent in 2018. The efficiency ratio for the full year of 2019 improved to 55.68 percent compared with 56.71 percent in 2018.

“Bank of Hawaii finished 2019 with strong financial performance and made significant progress on our strategic initiatives," said Peter Ho, Chairman, President, and CEO. “Our loan balances grew 5.2 percent in 2019 and our deposit balances grew 5.0 percent compared with 2018. Our asset quality, capital and liquidity all remain strong. During the fourth quarter we continued to reduce our leveraged lease exposure with the early buyout of a lease which reduced our loan balances by $42.7 million.”

Diluted earnings per share were $1.45 for the fourth quarter of 2019, an increase from $1.29 in the third quarter of 2019 and $1.30 in the fourth quarter of 2018. Net income for the fourth quarter of 2019 was $58.1 million, up from $52.1 million in the previous quarter and $53.9 million in the same quarter last year. The return on average assets for the fourth quarter of 2019 was 1.29 percent compared with 1.17 percent in the third quarter of 2019 and 1.26 percent in the fourth quarter last year. The return on average equity for the fourth quarter of 2019 was 17.84 percent compared with 16.02 percent in the third quarter of 2019 and 17.05 percent in the fourth quarter last year. The efficiency ratio for the fourth quarter of 2019 was 54.26 percent compared with 58.55 percent in the previous quarter and 57.75 percent in the same quarter last year.

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Bank of Hawaii Corporation 2019 Financial Results Page 2

Financial Highlights

Net interest income, on a taxable-equivalent basis, was $499.9 million for the full year of 2019, an increase of $8.4 million from net interest income of $491.5 million in 2018. Net interest income, on a taxable-equivalent basis, for the fourth quarter of 2019 was $124.2 million, a decrease of $1.0 million compared with net interest income of $125.2 million in the third quarter of 2019 and the fourth quarter last year. Analyses of changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin for the full year of 2019 was 3.03 percent, a decrease of 2 basis points from the net interest margin of 3.05 percent in 2018. The net interest margin was 2.95 percent in the fourth quarter of 2019, a decrease of 6 basis points from the previous quarter and 15 basis points from the same quarter last year.

The provision for credit losses for the full year of 2019 was $16.0 million compared with a provision for credit losses of $13.4 million in 2018. Results for the fourth quarter of 2019 included a provision for credit losses of $4.8 million compared with $4.3 million in the previous quarter and $2.0 million in the same quarter last year.

Noninterest income for the full year of 2019 was $183.3 million, an increase of $14.4 million or 8.5 percent compared with noninterest income of $168.9 million in 2018. The increase from the previous year was primarily due to growth in mortgage banking income, higher gains on sales of leased assets, increased customer derivative activity, and higher service charges on deposits that were partially offset by a decline in credit card fees resulting from the sale of the credit card portfolio in the fourth quarter of 2018. Noninterest income was $47.7 million in the fourth quarter of 2019 compared with noninterest income of $46.5 million in the third quarter of 2019 and $42.1 million in the fourth quarter of 2018. Noninterest income in the fourth quarter of 2019 included a gain of $3.8 million related to the early buyout of a leveraged lease that was partially offset by a reduction in mortgage banking income and customer derivative activity. 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. There were no significant items in noninterest income during the fourth quarter of 2018.

Noninterest expense for the full year of 2019 was $379.2 million, an increase of $7.6 million or 2.0 percent compared with noninterest expense of $371.6 million in 2018. The increase from the previous year was primarily due to increased depreciation and equipment costs related to the Company’s strategic initiatives, higher salaries and benefits, and increased legal costs that were partially offset by a reduction in credit card expenses due to the sale of the portfolio. Noninterest expense was $93.1 million in the fourth quarter of 2019 compared with noninterest expense of $100.3 million in the third quarter of 2019 and $95.9 million in the fourth quarter of 2018. There were no significant items in noninterest expense during the fourth quarter of 2019. Noninterest expense during the third quarter of 2019 included a $6.0 million increase in the legal reserve. 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. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the full year of 2019 was 20.96 percent compared with the effective tax rate of 18.73 percent for 2018. The effective tax rate for the fourth quarter of 2019 was 21.15 percent compared with 22.08 percent in the previous quarter and 20.92 percent during the same quarter last year.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services and Private Banking, and Treasury & 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.

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Bank of Hawaii Corporation 2019 Financial Results Page 3

Asset Quality

The Company’s strong overall asset quality continued to remain stable during the fourth quarter of 2019. Total non-performing assets were $20.1 million at December 31, 2019, down from $21.6 million at September 30, 2019 and up from $12.9 million at December 31, 2018. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.18 percent at December 31, 2019 compared with 0.20 percent at September 30, 2019 and 0.12 percent at December 31, 2018.

Accruing loans and leases past due 90 days or more were $8.4 million at December 31, 2019 compared with $6.1 million at September 30, 2019 and $6.6 million at December 31, 2018. Restructured loans and leases not included in non-accrual loans or accruing loans past due 90 days or more were $63.1 million at December 31, 2019 compared with $46.2 million at September 30, 2019 and $48.7 million at December 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 charge-offs for the full year of 2019 were $12.7 million or 0.12 percent of total average loans and leases compared with net charge-offs of $14.1 million or 0.14 percent of total average loans and leases in 2018. Net charge-offs during the fourth quarter of 2019 were $3.7 million or 0.13 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $6.2 million partially offset by recoveries of $2.6 million. Net charge-offs during the third quarter of 2019 were $3.0 million or 0.11 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $5.8 million and recoveries of $2.8 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 charge-offs of $6.9 million and recoveries of $2.9 million.

The allowance for loan and lease losses was $110.0 million at December 31, 2019, an increase from $108.9 million at September 30, 2019 and $106.7 million at December 31, 2018. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.00 percent at December 31, 2019, unchanged from September 30, 2019 and down 2 basis points from December 31, 2018. The total reserve for unfunded commitments of $6.8 million at December 31, 2019 was unchanged from the prior quarter and the same quarter last year. Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.

Total assets were $18.10 billion at December 31, 2019, an increase of 2.4 percent from total assets of $17.67 billion at September 30, 2019 and an increase of 5.6 percent from total assets of $17.14 billion at December 31, 2018. Average total assets were $17.54 billion during the full year of 2019, an increase of 3.3 percent from average total assets of $16.97 billion during 2018.

The investment securities portfolio was $5.66 billion at December 31, 2019, an increase of 2.2 percent from total securities of $5.54 billion at September 30, 2019 and an increase of 3.1 percent from total securities of $5.49 billion at December 31, 2018. The investment securities portfolio remains largely comprised of securities issued by U.S. government agencies and included $2.62 billion in securities available for sale and $3.04 billion in securities held to maturity at December 31, 2019.

Total loans and leases were $10.99 billion at December 31, 2019, an increase of 1.0 percent from total loans and leases of $10.88 billion at September 30, 2019 and 5.2 percent from total loans and leases of $10.45 billion at December 31, 2018. Adjusted for the previously mentioned early buyout of a leveraged lease, total loans increased 1.4 percent from the previous quarter and 5.6 percent from the same quarter last year.

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Bank of Hawaii Corporation 2019 Financial Results Page 4

The commercial portfolio grew to $4.21 billion at the end of the fourth quarter of 2019, an increase of 1.4 percent from commercial loans of $4.16 billion at the end of the third quarter of 2019 and 5.9 percent from commercial loans of $3.98 billion at the end of the fourth quarter last year. Adjusted for the previously mentioned early buyout of a leveraged lease, commercial loans increased 2.4 percent from the previous quarter and 7.0 percent from the same quarter last year. Consumer loans grew to $6.78 billion at December 31, 2019, an increase of 0.8 percent from consumer loans of $6.72 billion at the end of the third quarter of 2019 and 4.8 percent from consumer loans of $6.47 billion at the end of the fourth quarter last year. Average total loans and leases during the full year of 2019 were $10.69 billion, an increase of 6.4 percent from average loans and leases of $10.04 billion during 2018. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $15.78 billion at December 31, 2019, an increase of 2.9 percent from total deposits of $15.34 billion at September 30, 2019 and an increase of 5.0 percent from total deposits of $15.03 billion at December 31, 2018. Consumer deposits increased to $8.12 billion at December 31, 2019, an increase of 2.9 percent from consumer deposits of $7.89 billion at the end of the third quarter of 2019 and an increase of 5.1 percent from $7.73 billion at the end of the fourth quarter last year. Commercial deposits increased to $6.32 billion at the end of the fourth quarter of 2019, an increase of 2.8 percent from $6.15 billion at the end of the third quarter of 2019 and an increase of 3.7 percent from $6.10 billion at the end of the fourth quarter last year. Other deposits, including public funds, were $1.34 billion at December 31, 2019, an increase of 3.7 percent from total other deposits of $1.29 billion at September 30, 2019 and an increase of 11.6 percent from $1.20 billion at December 31, 2018. Average total deposits during the full year of 2019 were $15.23 billion, an increase of 3.2 percent compared with average total deposits of $14.76 billion during 2018. Deposit balances are summarized in Tables 7a, 7b, and 10.

During the fourth quarter of 2019, the Company repurchased 336.2 thousand shares of common stock at a total cost of $30.0 million under its share repurchase program. The average cost was $89.11 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through December 31, 2019, the Company has repurchased 56.9 million shares and returned nearly $2.3 billion to shareholders at an average cost of $40.38 per share. From January 2 through January 24, 2020 the Company repurchased an additional 71.5 thousand shares of common stock at an average cost of $93.50 per share repurchased. The Company’s Board of Directors increased the authorization under the share repurchase program by an additional $100.0 million. Remaining buyback authority under the share repurchase program was $120.4 million at January 24, 2020.

Total shareholders’ equity was $1.29 billion at December 31, 2019, down slightly from September 30, 2019, and up from $1.27 billion at December 31, 2018. The Tier 1 Capital Ratio was 12.18 percent at December 31, 2019 compared with 12.33 percent at September 30, 2019 and 13.07 percent at December 31, 2018. The Tier 1 Leverage Ratio at December 31, 2019 was 7.25 percent compared with 7.32 percent at September 30, 2019 and 7.60 percent at December 31, 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 March 13, 2020 to shareholders of record at the close of business on February 28, 2020.

Hawaii Economy

General economic conditions in Hawaii remained stable during 2019 due to low interest rates, a relatively healthy construction sector and growing visitor arrivals. For the first eleven months of 2019 total visitor arrivals increased 5.4 percent and visitor spending increased 0.5 percent compared to the same period in 2018. Total visitor days rose 2.7 percent compared to the first eleven months of 2018.

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Bank of Hawaii Corporation 2019 Financial Results Page 5

The statewide seasonally-adjusted unemployment rate in Hawaii continued to remain low at 2.6 percent in December 2019 compared with 3.5 percent nationally.

Real estate prices on Oahu remained steady during 2019 with a modest decline in total annual sales and stable median prices. For the full year of 2019, the median sales price of a single-family home on Oahu decreased 0.1 percent and the median price of a condominium on Oahu increased 1.2 percent compared with the same period in 2018. The volume of single-family home sales on Oahu increased 3.9 percent and the volume of condominium sales on Oahu decreased 4.8 percent in 2019 compared with 2018. As of December 31, 2019, months of inventory of single-family homes and condominiums on Oahu were 2.5 months and 3.4 months, respectively. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its 2019 financial results today at 8:00 a.m. Hawaii Time (1:00 p.m. Eastern 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 11:00 a.m. Hawaii Time on Monday, January 27, 2020. 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 1787817 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 do not promise 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 web site, www.boh.com.

# # # #


Bank of Hawaii Corporation and Subsidiaries
Financial Highlights													Table 1
	Three Months Ended															Year Ended
	December 31,			September 30,			December 31,			December 31,
(dollars in thousands, except per share amounts)	2019			2019			2018			2019			2018
For the Period:
Operating Results
Net Interest Income	$	123,885		$	124,896		$	123,973		$	497,715		$	486,352
Provision for Credit Losses	4,750			4,250			2,000			16,000			13,425
Total Noninterest Income	47,702			46,507			42,108			183,338			168,923
Total Noninterest Expense	93,096			100,349			95,911			379,227			371,624
Net Income	58,143			52,052			53,911			225,913			219,602
Basic Earnings Per Share	1.46			1.30			1.30			5.59			5.26
Diluted Earnings Per Share	1.45			1.29			1.30			5.56			5.23
Dividends Declared Per Share	0.67			0.65			0.62			2.59			2.34

Performance Ratios
Return on Average Assets	1.29		%	1.17		%	1.26		%	1.29		%	1.29		%
Return on Average Shareholders' Equity	17.84			16.02			17.05			17.65			17.63
Efficiency Ratio ¹	54.26			58.55			57.75			55.68			56.71
Net Interest Margin ²	2.95			3.01			3.10			3.03			3.05
Dividend Payout Ratio³	45.89			50.00			47.69			46.33			44.49
Average Shareholders' Equity to Average Assets	7.26			7.32			7.39			7.30			7.34

Average Balances
Average Loans and Leases	$	10,878,672		$	10,770,720		$	10,320,051		$	10,688,424		$	10,043,661
Average Assets	17,821,004			17,605,394			16,988,550			17,537,570			16,970,992
Average Deposits	15,441,097			15,330,691			14,779,511			15,228,066			14,757,724
Average Shareholders' Equity	1,292,930			1,289,417			1,254,704			1,280,082			1,245,672

Per Share of Common Stock
Book Value	$	32.14		$	32.00		$	30.56		$	32.14		$	30.56
Tangible Book Value	31.35			31.22			29.80			31.35			29.80
Market Value
Closing	95.16			85.93			67.32			95.16			67.32
High	95.68			88.20			82.80			95.68			89.09
Low	81.29			79.13			63.64			66.54			63.64

							December 31,			September 30,			December 31,
							2019			2019			2018
As of Period End:
Balance Sheet Totals
Loans and Leases							$	10,990,892		$	10,881,298		$	10,448,774
Total Assets							18,095,496			17,672,140			17,143,974
Total Deposits							15,784,482			15,340,752			15,027,242
Other Debt							85,565			110,585			135,643
Total Shareholders' Equity							1,286,832			1,291,490			1,268,200

Asset Quality
Non-Performing Assets							$	20,117		$	21,645		$	12,930
Allowance for Loan and Lease Losses							110,027			108,936			106,693
Allowance to Loans and Leases Outstanding							1.00		%	1.00		%	1.02		%

Capital Ratios
Common Equity Tier 1 Capital Ratio							12.18		%	12.33		%	13.07		%
Tier 1 Capital Ratio							12.18			12.33			13.07
Total Capital Ratio							13.28			13.44			14.21
Tier 1 Leverage Ratio							7.25			7.32			7.60
Total Shareholders' Equity to Total Assets							7.11			7.31			7.40
Tangible Common Equity to Tangible Assets ⁴							6.95			7.14			7.23
Tangible Common Equity to Risk-Weighted Assets⁴							11.85			12.10			12.52

Non-Financial Data
Full-Time Equivalent Employees							2,124			2,124			2,122
Branches							68			67			69
ATMs							387			379			382

¹ Efficiency 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.
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."


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

Total Shareholders' Equity				$	1,286,832				$	1,291,490				$	1,268,200
Less:	Goodwill	31,517					31,517					31,517
Tangible Common Equity				$	1,255,315				$	1,259,973				$	1,236,683

Total Assets				$	18,095,496				$	17,672,140				$	17,143,974
Less:	Goodwill	31,517					31,517					31,517
Tangible Assets				$	18,063,979				$	17,640,623				$	17,112,457

Risk-Weighted Assets, determined in accordance
	with prescribed regulatory requirements	$	10,589,061				$	10,416,560				$	9,878,904

Total Shareholders' Equity to Total Assets				7.11		%			7.31		%			7.40		%
Tangible Common Equity to Tangible Assets (Non-GAAP)				6.95		%			7.14		%			7.23		%

Tier 1 Capital Ratio				12.18		%			12.33		%			13.07		%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)				11.85		%			12.10		%			12.52		%


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income												Table 3
	Three Months Ended										Year Ended
	December 31,		September 30,		December 31,		December 31,
(dollars in thousands, except per share amounts)	2019		2019		2018		2019		2018
Interest Income
Interest and Fees on Loans and Leases	$	109,223	$	110,877	$	107,404	$	439,012	$	410,597
Income on Investment Securities
Available-for-Sale	16,158		17,512		13,043		62,174		50,152
Held-to-Maturity	18,750		18,796		21,482		81,616		84,310
Deposits	8		9		10		41		34
Funds Sold	723		656		727		3,553		3,723
Other	239		233		352		1,001		1,357
Total Interest Income	145,101		148,083		143,018		587,397		550,173
Interest Expense
Deposits	16,407		18,055		13,172		68,374		41,143
Securities Sold Under Agreements to Repurchase	4,071		4,257		4,671		17,522		18,519
Funds Purchased	25		146		440		840		609
Short-Term Borrowings	—		1		88		38		145
Other Debt	713		728		674		2,908		3,405
Total Interest Expense	21,216		23,187		19,045		89,682		63,821
Net Interest Income	123,885		124,896		123,973		497,715		486,352
Provision for Credit Losses	4,750		4,250		2,000		16,000		13,425
Net Interest Income After Provision for Credit Losses	119,135		120,646		121,973		481,715		472,927
Noninterest Income
Trust and Asset Management	11,157		10,930		10,558		44,233		43,877
Mortgage Banking	3,199		4,864		2,148		13,686		8,437
Service Charges on Deposit Accounts	7,835		7,592		7,562		30,074		28,811
Fees, Exchange, and Other Service Charges	14,533		14,900		14,576		57,893		57,482
Investment Securities Gains (Losses), Net	(906)		(1,469)		(841)		(3,986)		(3,938)
Annuity and Insurance	1,272		1,278		1,409		6,934		5,822
Bank-Owned Life Insurance	1,879		1,647		1,941		7,015		7,199
Other	8,733		6,765		4,755		27,489		21,233
Total Noninterest Income	47,702		46,507		42,108		183,338		168,923
Noninterest Expense
Salaries and Benefits	51,664		54,345		54,856		216,106		213,208
Net Occupancy	8,824		8,803		8,918		33,800		34,742
Net Equipment	7,930		7,637		6,364		29,295		23,852
Data Processing	4,828		4,676		5,151		18,757		17,846
Professional Fees	3,257		2,184		2,467		10,071		9,992
FDIC Insurance	1,376		1,257		1,336		5,192		7,732
Other	15,217		21,447		16,819		66,006		64,252
Total Noninterest Expense	93,096		100,349		95,911		379,227		371,624
Income Before Provision for Income Taxes	73,741		66,804		68,170		285,826		270,226
Provision for Income Taxes	15,598		14,752		14,259		59,913		50,624
Net Income	$	58,143	$	52,052	$	53,911	$	225,913	$	219,602
Basic Earnings Per Share	$	1.46	$	1.30	$	1.30	$	5.59	$	5.26
Diluted Earnings Per Share	$	1.45	$	1.29	$	1.30	$	5.56	$	5.23
Dividends Declared Per Share	$	0.67	$	0.65	$	0.62	$	2.59	$	2.34
Basic Weighted Average Shares	39,880,619		40,190,508		41,325,456		40,384,328		41,714,770
Diluted Weighted Average Shares	40,179,016		40,450,742		41,601,649		40,649,570		41,999,399


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income														Table 4
		Three Months Ended										Year Ended
		December 31,	September 30,		December 31,				December 31,
(dollars in thousands)			2019		2019		2018			2019		2018
Net Income			$	58,143	$	52,052	$	53,911		$	225,913	$	219,602
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities	(5,856)	5,405		11,169				22,677	(6,525)
	Defined Benefit Plans	(3,482)	245		(2,974)				(2,746)	(2,326)
Other Comprehensive Income (Loss)			(9,338)		5,650		8,195			19,931		(8,851)
Comprehensive Income			$	48,805	$	57,702	$	62,106		$	245,844	$	210,751


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition					Table 5
	December 31,		September 30,		December 31,
(dollars in thousands)	2019		2019		2018
Assets
Interest-Bearing Deposits in Other Banks	$	4,979	$	2,946	$	3,028
Funds Sold	254,574		108,446		198,860
Investment Securities
Available-for-Sale	2,619,003		2,594,394		2,007,942
Held-to-Maturity (Fair Value of $3,062,882; $2,972,273; and $3,413,994)	3,042,294		2,946,910		3,482,092
Loans Held for Sale	39,062		36,720		10,987
Loans and Leases	10,990,892		10,881,298		10,448,774
Allowance for Loan and Lease Losses	(110,027)		(108,936)		(106,693)
Net Loans and Leases	10,880,865		10,772,362		10,342,081
Total Earning Assets	16,840,777		16,461,778		16,044,990
Cash and Due from Banks	299,105		259,492		324,081
Premises and Equipment, Net	188,388		179,453		151,837
Operating Lease Right-of-Use Assets	100,838		101,005		—
Accrued Interest Receivable	46,476		47,897		51,230
Foreclosed Real Estate	2,737		2,939		1,356
Mortgage Servicing Rights	25,022		24,408		24,310
Goodwill	31,517		31,517		31,517
Bank-Owned Life Insurance	287,962		286,936		283,771
Other Assets	272,674		276,715		230,882
Total Assets	$	18,095,496	$	17,672,140	$	17,143,974

Liabilities
Deposits
Noninterest-Bearing Demand	$	4,489,525	$	4,392,706	$	4,739,596
Interest-Bearing Demand	3,127,205		3,000,865		3,002,925
Savings	6,365,321		6,141,098		5,539,199
Time	1,802,431		1,806,083		1,745,522
Total Deposits	15,784,482		15,340,752		15,027,242
Short-Term Borrowings	—		—		199
Securities Sold Under Agreements to Repurchase	604,306		604,299		504,296
Other Debt	85,565		110,585		135,643
Operating Lease Liabilities	108,210		108,264		—
Retirement Benefits Payable	44,504		39,682		40,494
Accrued Interest Payable	8,040		8,435		8,253
Taxes Payable and Deferred Taxes	16,085		21,089		19,736
Other Liabilities	157,472		147,544		139,911
Total Liabilities	16,808,664		16,380,650		15,875,774
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2019 - 58,166,910 / 40,039,695;
September 30, 2019 - 58,176,305 / 40,359,259;
and December 31, 2018 - 58,063,689 / 41,499,898)	579		579		577
Capital Surplus	582,566		580,200		571,704
Accumulated Other Comprehensive Loss	(31,112)		(21,774)		(51,043)
Retained Earnings	1,761,415		1,730,437		1,641,314
Treasury Stock, at Cost (Shares: December 31, 2019 - 18,127,215;
September 30, 2019 - 17,817,046; and December 31, 2018 - 16,563,791)	(1,026,616)		(997,952)		(894,352)
Total Shareholders' Equity	1,286,832		1,291,490		1,268,200
Total Liabilities and Shareholders' Equity	$	18,095,496	$	17,672,140	$	17,143,974


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, 2017			42,401,443	$	576	$	561,161	$	(34,715)	$	1,512,218	$	(807,372)	$	1,231,868
Net Income			—	—		—		—		219,602		—		219,602
Other Comprehensive Loss			—	—		—		(8,851)		—		—		(8,851)
Reclassification of the Income Tax Effects of the
Tax Cuts and Jobs Act from AOCI			—	—		—		(7,477)		7,477		—		—
Share-Based Compensation			—	—		8,146		—		—		—		8,146
Common Stock Issued under Purchase and Equity
	Compensation Plans and Related Tax Benefits	219,210	1	2,397		—		513		5,008		7,919
Common Stock Repurchased			(1,120,755)	—		—		—		—		(91,988)		(91,988)
Cash Dividends Declared ($2.34 per share)			—	—		—		—		(98,496)		—		(98,496)
Balance as of December 31, 2018			41,499,898	$	577	$	571,704	$	(51,043)	$	1,641,314	$	(894,352)	$	1,268,200

Net Income			—	—		—		—		225,913		—		225,913
Other Comprehensive Income			—	—		—		19,931		—		—		19,931
Share-Based Compensation			—	—		8,337		—		—		—		8,337
Common Stock Issued under Purchase and Equity
	Compensation Plans and Related Tax Benefits	212,924	2	2,525		—		(334)		5,385		7,578
Common Stock Repurchased			(1,673,127)	—		—		—		—		(137,649)		(137,649)
Cash Dividends Declared ($2.59 per share)			—	—		—		—		(105,478)		—		(105,478)
Balance as of December 31, 2019			40,039,695	$	579	$	582,566	$	(31,112)	$	1,761,415	$	(1,026,616)	$	1,286,832


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
		December 31, 2019											September 30, 2019										December 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				$	3.4	$	—	0.90	%		$	3.1	$	—	1.19	%		$	3.3	$	—	1.21	%
Funds Sold				177.7		0.7		1.59			121.1		0.7		2.12			128.2		0.7		2.22
Investment Securities
	Available-for-Sale
	Taxable	2,578.3		15.9		2.46			2,647.9		17.1		2.59			1,480.5		10.0		2.70
	Non-Taxable	33.4		0.4		4.35			42.6		0.5		4.45			556.4		3.8		2.77
	Held-to-Maturity
	Taxable	2,994.7		18.4		2.46			2,873.7		18.5		2.57			3,360.5		20.0		2.38
	Non-Taxable	61.7		0.4		2.70			65.2		0.4		2.72			235.1		1.9		3.16
Total Investment Securities				5,668.1		35.1		2.47			5,629.4		36.5		2.59			5,632.5		35.7		2.53
Loans Held for Sale				31.0		0.3		3.67			24.3		0.2		3.94			12.1		0.2		4.63
Loans and Leases ¹
	Commercial and Industrial	1,356.1		13.3		3.90			1,383.8		14.4		4.14			1,351.1		14.3		4.21
	Commercial Mortgage	2,479.7		25.5		4.08			2,423.7		26.2		4.28			2,256.0		24.2		4.25
	Construction	179.1		2.1		4.73			126.0		1.6		5.10			179.8		2.2		4.79
	Commercial Lease Financing	135.4		0.8		2.38			161.8		1.0		2.57			173.2		1.0		2.42
	Residential Mortgage	3,850.4		36.7		3.81			3,809.6		36.5		3.83			3,615.8		35.1		3.88
	Home Equity	1,683.4		15.7		3.70			1,689.2		16.1		3.79			1,652.4		15.7		3.78
	Automobile	715.2		6.5		3.59			707.0		6.4		3.59			641.8		6.0		3.73
	Other ²	479.4		8.5		7.02			469.6		8.5		7.16			450.0		8.8		7.72
Total Loans and Leases				10,878.7		109.1		3.99			10,770.7		110.7		4.09			10,320.1		107.3		4.14
Other				34.9		0.2		2.74			35.0		0.3		2.66			36.8		0.4		3.82
Total Earning Assets³				16,793.8		145.4		3.45			16,583.6		148.4		3.56			16,133.0		144.3		3.56
Cash and Due from Banks				222.2							231.5							234.3
Other Assets				805.0							790.3							621.3
Total Assets				$	17,821.0						$	17,605.4						$	16,988.6

Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,990.3	1.0		0.14			$	2,950.2	1.1		0.15			$	2,888.3	1.5		0.20
	Savings	6,245.0		8.0		0.51			6,122.0		8.8		0.57			5,494.5		4.5		0.32
	Time	1,842.3		7.4		1.59			1,851.0		8.2		1.75			1,800.7		7.2		1.59
Total Interest-Bearing Deposits				11,077.6		16.4		0.59			10,923.2		18.1		0.66			10,183.5		13.2		0.51
Short-Term Borrowings				5.8		—		1.66			27.1		0.1		2.13			89.6		0.5		2.31
Securities Sold Under Agreements to Repurchase				604.3		4.1		2.64			513.8		4.3		3.24			504.3		4.7		3.62
Other Debt				106.2		0.7		2.67			110.6		0.7		2.62			145.2		0.7		1.85
Total Interest-Bearing Liabilities				11,793.9		21.2		0.71			11,574.7		23.2		0.79			10,922.6		19.1		0.69
Net Interest Income						$	124.2						$	125.2						$	125.2
	Interest Rate Spread					2.74		%					2.77		%					2.87		%
	Net Interest Margin					2.95		%					3.01		%					3.10		%
Noninterest-Bearing Demand Deposits				4,363.5							4,407.5							4,596.0
Other Liabilities				370.7							333.8							215.3
Shareholders' Equity				1,292.9							1,289.4							1,254.7
Total Liabilities and Shareholders' Equity				$	17,821.0						$	17,605.4						$	16,988.6


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 $352,000, $296,000, and $1,263,000
	for the three months ended December 31, 2019, September 30, 2019, and December 31, 2018, respectively.


Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																	Table 7b
		Year Ended											Year Ended
		December 31, 2019											December 31, 2018
		Average		Income/		Yield/			Average		Income/		Yield/
(dollars in millions)				Balance		Expense		Rate			Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks				$	3.1	$	—	1.33	%		$	3.2	$	—	1.05	%
Funds Sold				165.7		3.6		2.14			200.0		3.7		1.86
Investment Securities
	Available-for-Sale
	Taxable	2,210.5		58.9		2.66			1,537.7		37.6		2.44
	Non-Taxable	109.6		4.1		3.78			577.9		15.9		2.76
	Held-to-Maturity
	Taxable	3,148.2		78.3		2.49			3,468.4		78.4		2.26
	Non-Taxable	137.8		4.2		3.04			236.5		7.5		3.17
Total Investment Securities				5,606.1		145.5		2.60			5,820.5		139.4		2.39
Loans Held for Sale				21.7		0.9		3.92			14.0		0.6		4.31
Loans and Leases¹
	Commercial and Industrial	1,370.9		57.9		4.23			1,304.8		51.9		3.98
	Commercial Mortgage	2,400.6		102.4		4.27			2,164.6		89.7		4.14
	Construction	145.2		7.4		5.07			184.9		8.6		4.68
	Commercial Lease Financing	154.4		3.7		2.43			176.8		4.1		2.29
	Residential Mortgage	3,768.2		144.7		3.84			3,546.5		136.0		3.84
	Home Equity	1,689.4		64.1		3.80			1,620.8		61.1		3.77
	Automobile	694.9		25.1		3.62			591.2		23.2		3.92
	Other ²	464.8		33.3		7.16			454.1		35.6		7.85
Total Loans and Leases				10,688.4		438.6		4.10			10,043.7		410.2		4.08
Other				35.1		1.0		2.85			39.0		1.4		3.48
Total Earning Assets ³				16,520.1		589.6		3.57			16,120.4		555.3		3.44
Cash and Due from Banks				234.0							241.6
Other Assets				783.5							609.0
Total Assets				$	17,537.6						$	16,971.0

Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,945.9	5.0		0.17			$	2,958.8	4.7		0.16
	Savings	6,034.0		32.4		0.54			5,434.3		13.6		0.25
	Time	1,816.3		31.0		1.71			1,725.9		22.8		1.32
Total Interest-Bearing Deposits				10,796.2		68.4		0.63			10,119.0		41.1		0.41
Short-Term Borrowings				36.5		0.9		2.41			35.5		0.8		2.13
Securities Sold Under Agreements to Repurchase				531.9		17.5		3.29			504.7		18.5		3.67
Other Debt				111.8		2.9		2.60			211.3		3.4		1.61
Total Interest-Bearing Liabilities				11,476.4		89.7		0.78			10,870.5		63.8		0.59
Net Interest Income						$	499.9						$	491.5
	Interest Rate Spread					2.79		%					2.85		%
	Net Interest Margin					3.03		%					3.05		%
Noninterest-Bearing Demand Deposits				4,431.9							4,638.7
Other Liabilities				349.2							216.1
Shareholders' Equity				1,280.1							1,245.7
Total Liabilities and Shareholders' Equity				$	17,537.6						$	16,971.0


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.
³Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $2,230,000 and $5,170,000
	for the years ended December 31, 2019 and December 31, 2018, respectively.


Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended December 31, 2019
	Compared to September 30, 2019
(dollars in millions)	Volume ¹		Rate ¹		Total
Change in Interest Income:
Funds Sold	$	0.2	$	(0.2)	$	—
Investment Securities
Available-for-Sale
Taxable	(0.4)		(0.8)		(1.2)
Non-Taxable	(0.1)		—		(0.1)
Held-to-Maturity
Taxable	0.7		(0.8)		(0.1)
Total Investment Securities	0.2		(1.6)		(1.4)
Loans Held for Sale	0.1		—		0.1
Loans and Leases
Commercial and Industrial	(0.3)		(0.8)		(1.1)
Commercial Mortgage	0.6		(1.3)		(0.7)
Construction	0.6		(0.1)		0.5
Commercial Lease Financing	(0.1)		(0.1)		(0.2)
Residential Mortgage	0.3		(0.1)		0.2
Home Equity	—		(0.4)		(0.4)
Automobile	0.1		—		0.1
Other ²	0.2		(0.2)		—
Total Loans and Leases	1.4		(3.0)		(1.6)
Other	(0.1)		—		(0.1)
Total Change in Interest Income	1.8		(4.8)		(3.0)

Change in Interest Expense:
Interest-Bearing Deposits
Demand	—		(0.1)		(0.1)
Savings	0.1		(0.9)		(0.8)
Time	—		(0.8)		(0.8)
Total Interest-Bearing Deposits	0.1		(1.8)		(1.7)
Short-Term Borrowings	(0.1)		—		(0.1)
Securities Sold Under Agreements to Repurchase	0.7		(0.9)		(0.2)
Total Change in Interest Expense	0.7		(2.7)		(2.0)

Change in Net Interest Income	$	1.1	$	(2.1)	$	(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.
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 December 31, 2019
	Compared to December 31, 2018
(dollars in millions)	Volume ¹		Rate ¹		Total
Change in Interest Income:
Funds Sold	$	0.2	$	(0.2)	$	—
Investment Securities
Available-for-Sale
Taxable	6.8		(0.9)		5.9
Non-Taxable	(4.9)		1.5		(3.4)
Held-to-Maturity
Taxable	(2.2)		0.6		(1.6)
Non-Taxable	(1.2)		(0.3)		(1.5)
Total Investment Securities	(1.5)		0.9		(0.6)
Loans Held for Sale	0.2		(0.1)		0.1
Loans and Leases
Commercial and Industrial	0.1		(1.1)		(1.0)
Commercial Mortgage	2.3		(1.0)		1.3
Construction	—		(0.1)		(0.1)
Commercial Lease Financing	(0.2)		—		(0.2)
Residential Mortgage	2.2		(0.6)		1.6
Home Equity	0.3		(0.3)		—
Automobile	0.7		(0.2)		0.5
Other ²	0.5		(0.8)		(0.3)
Total Loans and Leases	5.9		(4.1)		1.8
Other	(0.1)		(0.1)		(0.2)
Total Change in Interest Income	4.7		(3.6)		1.1

Change in Interest Expense:
Interest-Bearing Deposits
Demand	—		(0.5)		(0.5)
Savings	0.7		2.8		3.5
Time	0.2		—		0.2
Total Interest-Bearing Deposits	0.9		2.3		3.2
Short-Term Borrowings	(0.4)		(0.1)		(0.5)
Securities Sold Under Agreements to Repurchase	0.8		(1.4)		(0.6)
Other Debt	(0.3)		0.3		—
Total Change in Interest Expense	1.0		1.1		2.1

Change in Net Interest Income	$	3.7	$	(4.7)	$	(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.
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 8c
	Year Ended December 31, 2019
	Compared to December 31, 2018
(dollars in millions)	Volume ¹		Rate ¹		Total
Change in Interest Income:
Funds Sold	$	(0.7)	$	0.6	$	(0.1)
Investment Securities
Available-for-Sale
Taxable	17.7		3.6		21.3
Non-Taxable	(16.2)		4.4		(11.8)
Held-to-Maturity
Taxable	(7.6)		7.5		(0.1)
Non-Taxable	(3.0)		(0.3)		(3.3)
Total Investment Securities	(9.1)		15.2		6.1
Loans Held for Sale	0.3		—		0.3
Loans and Leases
Commercial and Industrial	2.7		3.3		6.0
Commercial Mortgage	10.0		2.7		12.7
Construction	(1.9)		0.7		(1.2)
Commercial Lease Financing	(0.6)		0.2		(0.4)
Residential Mortgage	8.5		0.2		8.7
Home Equity	2.6		0.4		3.0
Automobile	3.8		(1.9)		1.9
Other²	0.9		(3.2)		(2.3)
Total Loans and Leases	26.0		2.4		28.4
Other	(0.1)		(0.3)		(0.4)
Total Change in Interest Income	16.4		17.9		34.3

Change in Interest Expense:
Interest-Bearing Deposits
Demand	—		0.3		0.3
Savings	1.6		17.2		18.8
Time	1.3		6.9		8.2
Total Interest-Bearing Deposits	2.9		24.4		27.3
Short-Term Borrowings	—		0.1		0.1
Securities Sold Under Agreements to Repurchase	1.0		(2.0)		(1.0)
Other Debt	(2.0)		1.5		(0.5)
Total Change in Interest Expense	1.9		24.0		25.9

Change in Net Interest Income	$	14.5	$	(6.1)	$	8.4


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


Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits									Table 9
	Three Months Ended										Year Ended
	December 31,		September 30,		December 31,		December 31,
(dollars in thousands)	2019		2019		2018		2019		2018
Salaries	$	33,465	$	33,458	$	33,603	$	132,237	$	132,884
Incentive Compensation	4,864		5,681		5,715		21,913		20,687
Share-Based Compensation	1,475		2,025		1,417		8,573		8,074
Commission Expense	2,080		1,760		1,158		6,474		4,418
Retirement and Other Benefits	4,279		4,185		4,369		18,151		17,313
Payroll Taxes	2,386		2,519		2,277		11,795		11,389
Medical, Dental, and Life Insurance	2,903		3,908		5,237		15,202		16,134
Separation Expense	212		809		1,080		1,761		2,309
Total Salaries and Benefits	$	51,664	$	54,345	$	54,856	$	216,106	$	213,208


Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances														Table 10
		December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)				2019		2019		2019		2019		2018
Commercial
	Commercial and Industrial	$	1,379,152	$	1,361,011	$	1,408,729	$	1,331,345	$	1,331,149
	Commercial Mortgage	2,518,051		2,477,296		2,411,289		2,381,213		2,302,356
	Construction	194,170		154,754		119,228		132,775		170,061
	Lease Financing	122,454		163,672		163,070		154,919		176,226
Total Commercial				4,213,827		4,156,733		4,102,316		4,000,252		3,979,792
Consumer
	Residential Mortgage	3,891,100		3,846,511		3,785,006		3,702,553		3,673,796
	Home Equity	1,676,073		1,681,951		1,694,577		1,698,666		1,681,442
	Automobile	720,286		713,424		703,523		676,730		658,133
	Other ¹	489,606		482,679		473,707		470,408		455,611
Total Consumer				6,777,065		6,724,565		6,656,813		6,548,357		6,468,982
Total Loans and Leases				$	10,990,892	$	10,881,298	$	10,759,129	$	10,548,609	$	10,448,774


Deposits
		December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)				2019		2019		2019		2019		2018
Consumer				$	8,118,494	$	7,893,454	$	7,880,284	$	7,944,793	$	7,726,731
Commercial				6,324,214		6,153,492		6,178,984		6,162,042		6,098,186
Public and Other				1,341,774		1,293,806		1,429,553		1,160,475		1,202,325
Total Deposits				$	15,784,482	$	15,340,752	$	15,488,821	$	15,267,310	$	15,027,242


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
			December 31,		September 30,			June 30,			March 31,			December 31,
(dollars in thousands)								2019			2019			2019			2019			2018
Non-Performing Assets
Non-Accrual Loans and Leases
	Commercial
		Commercial and Industrial	$	830	$	573		$	552		$	393		$	542
		Commercial Mortgage	9,244		11,088			11,310			5,911			2,040
	Total Commercial				10,074			11,661			11,862			6,304			2,582
	Consumer
		Residential Mortgage	4,125		4,258			4,697			5,599			5,321
		Home Equity	3,181		2,787			2,486			2,797			3,671
	Total Consumer				7,306			7,045			7,183			8,396			8,992
Total Non-Accrual Loans and Leases								17,380			18,706			19,045			14,700			11,574
Foreclosed Real Estate								2,737			2,939			2,737			3,225			1,356
Total Non-Performing Assets								$	20,117		$	21,645		$	21,782		$	17,925		$	12,930

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				$	1,839		$	2,032		$	1,859		$	903		$	2,446
	Home Equity				4,125			2,320			2,981			3,381			2,684
	Automobile				949			582			607			734			513
	Other ¹				1,493			1,076			963			1,033			914
Total Consumer								8,406			6,010			6,410			6,051			6,557
Total Accruing Loans and Leases Past Due 90 Days or More								$	8,406		$	6,091		$	6,410		$	6,117		$	6,567
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More								$	63,103		$	46,178		$	48,563		$	48,571		$	48,731
Total Loans and Leases								$	10,990,892		$	10,881,298		$	10,759,129		$	10,548,609		$	10,448,774

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases								0.16		%	0.17		%	0.18		%	0.14		%	0.11		%

Ratio of Non-Performing Assets to Total Loans and Leases
	and Foreclosed Real Estate				0.18		%	0.20		%	0.20		%	0.17		%	0.12		%

Ratio of Commercial Non-Performing Assets to Total Commercial
	Loans and Leases and Commercial Foreclosed Real Estate				0.24		%	0.28		%	0.29		%	0.16		%	0.06		%

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

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				0.26		%	0.25		%	0.26		%	0.23		%	0.19		%

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter								$	21,645		$	21,782		$	17,925		$	12,930		$	13,798
Additions								883			1,035			6,186			8,217			4,509
Reductions
	Payments				(495)			(984)			(441)			(989)			(3,759)
	Return to Accrual Status				(1,673)			—			(1,344)			(316)			(605)
	Sales of Foreclosed Real Estate				(201)			—			(374)			—			(653)
	Charge-offs/Write-downs				(42)			(188)			(170)			(1,917)			(360)
Total Reductions								(2,411)			(1,172)			(2,329)			(3,222)			(5,377)
Balance at End of Quarter								$	20,117		$	21,645		$	21,782		$	17,925		$	12,930

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


Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses																				Table 12
			Three Months Ended														Year Ended
			December 31,	September 30,		December 31,						December 31,
(dollars in thousands)						2019			2019			2018					2019			2018
Balance at Beginning of Period						$	115,758		$	114,494		$	115,512				$	113,515		$	114,168
Loans and Leases Charged-Off
	Commercial
		Commercial and Industrial	(307)	(239)		(365)						(1,122)			(1,505)
		Commercial Mortgage	—	—		—						(1,616)			—
	Consumer
		Residential Mortgage	(50)	(7)		(1)						(112)			(101)
		Home Equity	(245)	(215)		(406)						(900)			(665)
		Automobile	(1,990)	(1,696)		(2,335)						(7,130)			(8,218)
		Other ¹	(3,651)	(3,598)		(3,781)						(13,075)			(14,075)
Total Loans and Leases Charged-Off						(6,243)			(5,755)			(6,888)					(23,955)			(24,564)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
		Commercial and Industrial	293	318		803						1,513			2,039
	Consumer
		Residential Mortgage	699	649		112						1,927			807
		Home Equity	577	428		367						2,339			2,001
		Automobile	512	660		949						2,961			2,902
		Other ¹	503	714		660						2,549			2,737
Total Recoveries on Loans and Leases Previously Charged-Off						2,584			2,769			2,891					11,289			10,486
Net Loans and Leases Charged-Off						(3,659)			(2,986)			(3,997)					(12,666)			(14,078)
Provision for Credit Losses						4,750			4,250			2,000					16,000			13,425

Balance at End of Period ²						$	116,849		$	115,758		$	113,515				$	116,849		$	113,515

Components
Allowance for Loan and Lease Losses						$	110,027		$	108,936		$	106,693				$	110,027		$	106,693
Reserve for Unfunded Commitments						6,822			6,822			6,822					6,822			6,822
Total Reserve for Credit Losses						$	116,849		$	115,758		$	113,515				$	116,849		$	113,515

Average Loans and Leases Outstanding						$	10,878,672		$	10,770,720		$	10,320,051				$	10,688,424		$	10,043,661

Ratio of Net Loans and Leases Charged-Off to
	Average Loans and Leases Outstanding (annualized)			0.13	%	0.11		%	0.15		%				0.12	%	0.14		%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding						1.00		%	1.00		%	1.02		%			1.00		%	1.02		%

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 December 31, 2019
Net Interest Income	$	66,410	$	45,475	$	9,689	$	2,311	$	123,885
Provision for Credit Losses	3,818		(165)		1		1,096		4,750
Net Interest Income After Provision for Credit Losses	62,592		45,640		9,688		1,215		119,135
Noninterest Income	21,377		10,624		13,929		1,772		47,702
Noninterest Expense	(52,720)		(21,071)		(15,774)		(3,531)		(93,096)
Income Before Provision for Income Taxes	31,249		35,193		7,843		(544)		73,741
Provision for Income Taxes	(7,842)		(6,345)		(2,067)		656		(15,598)
Net Income	$	23,407	$	28,848	$	5,776	$	112	$	58,143
Total Assets as of December 31, 2019	$	6,732,811	$	4,254,261	$	321,700	$	6,786,724	$	18,095,496


Three Months Ended December 31, 2018
Net Interest Income	$	67,452	$	46,429	$	10,235	$	(143)	$	123,973
Provision for Credit Losses	4,481		(484)		(1)		(1,996)		2,000
Net Interest Income After Provision for Credit Losses	62,971		46,913		10,236		1,853		121,973
Noninterest Income	20,339		6,338		13,397		2,034		42,108
Noninterest Expense	(53,417)		(20,912)		(17,583)		(3,999)		(95,911)
Income Before Provision for Income Taxes	29,893		32,339		6,050		(112)		68,170
Provision for Income Taxes	(7,465)		(7,714)		(1,595)		2,515		(14,259)
Net Income	$	22,428	$	24,625	$	4,455	$	2,403	$	53,911
Total Assets as of December 31, 2018	$	6,365,263	$	3,958,523	$	349,832	$	6,470,356	$	17,143,974


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
Year Ended December 31, 2019
Net Interest Income	$	266,429	$	185,259	$	39,374	$	6,653	$	497,715
Provision for Credit Losses	11,670		976		15		3,339		16,000
Net Interest Income After Provision for Credit Losses	254,759		184,283		39,359		3,314		481,715
Noninterest Income	86,682		33,362		55,696		7,598		183,338
Noninterest Expense	(216,688)		(84,616)		(64,974)		(12,949)		(379,227)
Income Before Provision for Income Taxes	124,753		133,029		30,081		(2,037)		285,826
Provision for Income Taxes	(30,725)		(28,852)		(7,929)		7,593		(59,913)
Net Income	$	94,028	$	104,177	$	22,152	$	5,556	$	225,913
Total Assets as of December 31, 2019	$	6,732,811	$	4,254,261	$	321,700	$	6,786,724	$	18,095,496


Year Ended December 31, 2018
Net Interest Income	$	264,459	$	179,577	$	41,222	$	1,094	$	486,352
Provision for Credit Losses	14,898		(760)		(61)		(652)		13,425
Net Interest Income After Provision for Credit Losses	249,561		180,337		41,283		1,746		472,927
Noninterest Income	79,004		23,733		55,338		10,848		168,923
Noninterest Expense	(211,761)		(81,344)		(65,847)		(12,672)		(371,624)
Income Before Provision for Income Taxes	116,804		122,726		30,774		(78)		270,226
Provision for Income Taxes	(29,172)		(28,496)		(8,113)		15,157		(50,624)
Net Income	$	87,632	$	94,230	$	22,661	$	15,079	$	219,602
Total Assets as of December 31, 2018	$	6,365,263	$	3,958,523	$	349,832	$	6,470,356	$	17,143,974


Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data															Table 14
	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands, except per share amounts)	2019			2019			2019			2019			2018
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	109,223		$	110,877		$	110,401		$	108,511		$	107,404
Income on Investment Securities
Available-for-Sale	16,158			17,512			15,072			13,432			13,043
Held-to-Maturity	18,750			18,796			22,149			21,921			21,482
Deposits	8			9			9			15			10
Funds Sold	723			656			730			1,444			727
Other	239			233			210			319			352
Total Interest Income	145,101			148,083			148,571			145,642			143,018
Interest Expense
Deposits	16,407			18,055			18,628			15,284			13,172
Securities Sold Under Agreements to Repurchase	4,071			4,257			4,623			4,571			4,671
Funds Purchased	25			146			512			157			440
Short-Term Borrowings	—			1			1			36			88
Other Debt	713			728			710			757			674
Total Interest Expense	21,216			23,187			24,474			20,805			19,045
Net Interest Income	123,885			124,896			124,097			124,837			123,973
Provision for Credit Losses	4,750			4,250			4,000			3,000			2,000
Net Interest Income After Provision for Credit Losses	119,135			120,646			120,097			121,837			121,973
Noninterest Income
Trust and Asset Management	11,157			10,930			11,385			10,761			10,558
Mortgage Banking	3,199			4,864			3,336			2,287			2,148
Service Charges on Deposit Accounts	7,835			7,592			7,283			7,364			7,562
Fees, Exchange, and Other Service Charges	14,533			14,900			14,252			14,208			14,576
Investment Securities Gains (Losses), Net	(906)			(1,469)			(776)			(835)			(841)
Annuity and Insurance	1,272			1,278			1,806			2,578			1,409
Bank-Owned Life Insurance	1,879			1,647			1,779			1,710			1,941
Other	8,733			6,765			6,385			5,606			4,755
Total Noninterest Income	47,702			46,507			45,450			43,679			42,108
Noninterest Expense
Salaries and Benefits	51,664			54,345			53,511			56,586			54,856
Net Occupancy	8,824			8,803			8,579			7,594			8,918
Net Equipment	7,930			7,637			6,895			6,833			6,364
Data Processing	4,828			4,676			4,727			4,526			5,151
Professional Fees	3,257			2,184			2,177			2,453			2,467
FDIC Insurance	1,376			1,257			1,290			1,269			1,336
Other	15,217			21,447			15,546			13,796			16,819
Total Noninterest Expense	93,096			100,349			92,725			93,057			95,911
Income Before Provision for Income Taxes	73,741			66,804			72,822			72,459			68,170
Provision for Income Taxes	15,598			14,752			15,903			13,660			14,259
Net Income	$	58,143		$	52,052		$	56,919		$	58,799		$	53,911

Basic Earnings Per Share	$	1.46		$	1.30		$	1.40		$	1.44		$	1.30
Diluted Earnings Per Share	$	1.45		$	1.29		$	1.40		$	1.43		$	1.30

Balance Sheet Totals
Loans and Leases	$	10,990,892		$	10,881,298		$	10,759,129		$	10,548,609		$	10,448,774
Total Assets	18,095,496			17,672,140			17,688,845			17,446,413			17,143,974
Total Deposits	15,784,482			15,340,752			15,488,821			15,267,310			15,027,242
Total Shareholders' Equity	1,286,832			1,291,490			1,285,948			1,269,690			1,268,200

Performance Ratios
Return on Average Assets	1.29		%	1.17		%	1.31		%	1.38		%	1.26		%
Return on Average Shareholders' Equity	17.84			16.02			17.97			18.81			17.05
Efficiency Ratio¹	54.26			58.55			54.69			55.22			57.75
Net Interest Margin ²	2.95			3.01			3.04			3.12			3.10

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
	Eleven Months Ended						Year Ended
($ in millions; jobs in thousands)	November 30, 2019						December 31, 2018								December 31, 2017
Hawaii Economic Trends
State General Fund Revenues¹	$	6,749.3	6.0	%	$	6,933.1		6.9	%	$	6,485.0		4.3	%
General Excise and Use Tax Revenue ¹	$	3,316.0	5.4	%	$	3,426.5		2.3	%	$	3,349.8		4.5	%
Jobs²	645.3				660.0					664.5

								December 31,
(spot rates)								2019		2018				2017
Unemployment ³
Statewide, seasonally adjusted								2.6	%	2.6		%	2.3	%

Oahu								2.1		2.2			1.7
Island of Hawaii								3.0		2.9			2.0
Maui								2.2		2.2			1.8
Kauai								2.5		2.3			1.7

					December 31,
(percentage change, except months of inventory)							2019		2018			2017			2016
Housing Trends (Single Family Oahu)⁴
Median Home Price					(0.1)		%	4.6	%	2.7		%	5.0	%
Home Sales Volume (units)					3.9		%	(7.7)	%	6.3		%	6.5	%
Months of Inventory					2.5			2.8		2.1			2.5

					Monthly Visitor Arrivals,								Percentage Change
(in thousands)					Not Seasonally Adjusted								from Previous Year
Tourism ⁵
November 30, 2019								811.4					4.2
October 31, 2019								800.4					4.8
September 30, 2019								741.3					3.5
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								778.5					3.9
October 31, 2018								763.7					3.5
September 30, 2018								716.1					2.2
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

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