Bank of Hawai‘i Corporation Third Quarter 2022 Financial Results

October 24, 2022

BOH 3Q2022 Earnings 1.8 MB

Diluted Earnings Per Common Share $1.28
Net Income $52.8 Million
Board of Directors Declares Dividend of $0.70 Per Common Share

HONOLULU--(BUSINESS WIRE)--Oct. 24, 2022-- Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $1.28 for the third quarter of 2022, compared with diluted earnings per common share of $1.38 in the previous quarter and $1.52 in the same quarter last year. Net income for the third quarter of 2022 was $52.8 million, down 7.1% from the second quarter of 2022 and down 14.9% from the third quarter of 2021. The decrease from the second quarter of 2022 was primarily due to a one-time pre-tax charge of $6.9 million related to our agreement to sell assets that will terminate certain leveraged leases and a decrease in the negative provision for credit losses. The decrease from the third quarter of 2021 was primarily due to the aforementioned charge, a decrease in the negative provision for credit losses and lower PPP income in the current quarter and one-time items in the third quarter of 2021.

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“Bank of Hawai‘i continued to perform well during the third quarter of 2022," said Peter Ho, Chairman, President, and CEO. “We experienced quality core market loan growth and continued net interest income and margin expansion. Asset quality, capital, and liquidity remained strong.”

Financial Highlights

The return on average assets for the third quarter of 2022 was 0.91% compared with 1.00% in the previous quarter and 1.07% in the same quarter of 2021.

The return on average common equity for the third quarter of 2022 was 16.98% compared with 18.19% in the previous quarter and 17.08% in the same quarter of 2021.

Net interest income for the third quarter of 2022 was $141.7 million, an increase of 6.6% from the second quarter of 2022 and an increase of 11.7% from the third quarter of 2021. Net interest margin was 2.60% in the third quarter of 2022, an increase of 13 basis points compared to the previous quarter and an increase of 28 basis points from the same quarter of 2021.
- The increase in net interest income and margin in the third quarter of 2022 compared to prior periods was due to the higher rate environment and continued strong loan growth.
- Net interest income for the second quarter of 2022 included $1.1 million of interest recoveries.

There was no provision for credit losses for the third quarter of 2022 compared with a net benefit of $2.5 million in the previous quarter and a net benefit of $10.4 million in the same quarter of 2021.

Noninterest income was $30.7 million in the third quarter of 2022, a decrease of 27.3% from the previous quarter and a decrease of 25.9% from the same quarter of 2021 primarily due to one-time items in the current quarter.
- Noninterest income in the current quarter included a one-time pre-tax charge of $6.9 million related to our agreement to sell assets that will terminate leveraged leases related to 31 locomotives. The sale and lease termination will complete the Company’s process of exiting the leveraged lease market. In addition, noninterest income in the current quarter also included a negative adjustment of $0.9 million related to a change in the Visa Class B conversion ratio.

Noninterest expense was $105.7 million in the third quarter of 2022, an increase of 2.7% from the previous quarter and an increase of 9.6% from the same quarter of 2021.
- Compared to the same period in 2021, noninterest expense included the impact of higher salaries and benefits, including $1.8 million in separation expenses, and higher occupancy expenses, primarily due to a one-time benefit in the same quarter of last year from the sale of property.
- One-time significant items in the third quarter of 2021 included a gain of $6.3 million related to the sale of property partially offset by $3.8 million of fees related to the early termination of repurchase agreements and $1.2 million in separation expenses.

The effective tax rate for the third quarter of 2022 was 20.7% compared with 23.8% in the previous quarter and 24.4% during the same quarter of 2021.
- The lower effective tax rate in the current quarter is primarily due to tax benefits related to the aforementioned agreement to sell assets that will terminate certain leveraged leases.

Asset Quality

The Company’s overall asset quality remained strong during the third quarter of 2022.

Total non-performing assets were $13.9 million at September 30, 2022, down by $1.6 million from June 30, 2022 and down $6.8 million from September 30, 2021. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.10% at the end of the quarter, a decrease of 2 basis points from the end of the prior quarter and a decrease of 7 basis points from the same quarter of 2021.

Net loan and lease charge-offs during the third quarter of 2022 were $1.1 million or 0.03% annualized of total average loans and leases outstanding.
- Net loan and lease charge-offs for the third quarter of 2022 were comprised of charge-offs of $2.9 million partially offset by recoveries of $1.7 million.
- Compared to the prior quarter, net loan and lease charge-offs increased by $0.5 million or 1 basis point annualized on total average loans and leases outstanding.
- Compared to the same quarter of 2021, net loan and lease charge-offs decreased by $0.05 million or 1 basis point annualized on total average loans and leases outstanding.

The allowance for credit losses on loans and leases was $146.4 million at September 30, 2022, a decrease of $2.1 million from June 30, 2022 and a decrease of $21.5 million from September 30, 2021. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.10% at the end of the quarter, down 5 basis points from the end of the prior quarter and down 29 basis points from the end of the same quarter of 2021.

Balance Sheet

Total assets were $23.1 billion at September 30, 2022, a decrease of 0.4% from June 30, 2022 and an increase of 0.7% from September 30, 2021.

The investment securities portfolio was $7.9 billion at September 30, 2022, a decrease of 4.7% from June 30, 2022 and a decrease of 14.8% from September 30, 2021.
- During the third quarter, the Company transferred investment securities with total fair value of approximately $1.3 billion from available-for-sale to held-to-maturity.
- The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.

Total loans and leases were $13.3 billion at September 30, 2022, an increase of 2.9% from June 30, 2022 and an increase of 10.3% from September 30, 2021.
- Total loans and leases excluding PPP loans were $13.3 billion at September 30, 2022, an increase of 2.9% from June 30, 2022 and an increase of 12.7% from September 30, 2021.

Total deposits were $20.9 billion at September 30, 2022, a decrease of 0.7% from June 30, 2022 and an increase of 1.9% from September 30, 2021.

Capital and Dividends

The Tier 1 Capital Ratio was 12.72% at September 30, 2022 compared with 13.01% at June 30, 2022 and 13.47% at September 30, 2021.

The Tier 1 Leverage Ratio was 7.28% at September 30, 2022 compared with 7.29% at June 30, 2022 and 7.10% at September 30, 2021.

The Company repurchased 187.5 thousand shares of common stock at a total cost of $15.0 million under its share repurchase program in the third quarter of 2022 at an average cost of $79.84 per share repurchased.
- Total remaining buyback authority under the share repurchase program was $50.9 million at September 30, 2022.

The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on December 14, 2022 to shareholders of record at the close of business on November 30, 2022.

On October 4, 2022, the Board of Directors declared the quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, on its preferred stock. The depositary shares representing the Series A Preferred Stock are traded on the NYSE under the symbol “BOH.PRA.” The dividend will be payable on November 1, 2022 to shareholders of record of the preferred stock at the close of business on October 17, 2022.

Conference Call Information

The Company will review its third quarter financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawai‘i Corporation's website, www.boh.com.

The webcast can be accessed via the link below:
https://register.vevent.com/register/BIb16c1a66caad46fe8057fb079c9fe595.
A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawaii Time on Monday, October 24, 2022. The replay will be accessible via the same link. In addition, the 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" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawai‘i Corporation's Annual Report on Form 10-K for the year ended December 31, 2021 and its Form 10-Q for the fiscal quarters ended March 31, 2022 and June 30, 2022, which were filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

Bank of Hawai‘i Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawaii and the West Pacific. The Company's principal subsidiary, Bank of Hawai'i, was founded in 1897. For more information about Bank of Hawai‘i Corporation, see the Company’s web site, www.boh.com. Bank of Hawai‘i Corporation is a trade name of Bank of Hawaii Corporation.

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)	2022			2022			2021			2022			2021
For the Period:
Operating Results
Net Interest Income	$	141,655		$	132,902		$	126,819		$	399,820		$	370,902
Provision for Credit Losses		-			(2,500	)		(10,400	)		(8,000	)		(40,800	)
Total Noninterest Income		30,660			42,158			41,378			116,369			128,779
Total Noninterest Expense		105,749			102,939			96,519			312,562			291,911
Pre-Provision Net Revenue		66,566			72,121			71,678			203,627			207,770
Net Income		52,801			56,862			62,053			164,497			189,535
Net Income Available to Common Shareholders		50,832			54,893			61,047			158,590			188,529
Basic Earnings Per Common Share		1.28			1.38			1.53			4.00			4.73
Diluted Earnings Per Common Share		1.28			1.38			1.52			3.98			4.70
Dividends Declared Per Common Share		0.70			0.70			0.70			2.10			2.04

Performance Ratios
Return on Average Assets		0.91	%		1.00	%		1.07	%		0.96	%		1.15	%
Return on Average Shareholders' Equity		15.31			16.40			15.41			15.25			17.31
Return on Average Common Equity		16.98			18.19			17.08			16.81			18.10
Efficiency Ratio ¹		61.37			58.80			57.38			60.55			58.42
Net Interest Margin ²		2.60			2.47			2.32			2.47			2.37
Dividend Payout Ratio ³		54.69			50.72			45.75			52.50			43.13
Average Shareholders' Equity to Average Assets		5.91			6.08			6.95			6.28			6.63

Average Balances
Average Loans and Leases	$	13,126,717		$	12,700,825		$	11,958,321		$	12,709,045		$	12,002,426
Average Assets		23,135,820			22,891,262			22,993,036			22,959,246			22,079,174
Average Deposits		20,863,681			20,569,363			20,473,777			20,621,310			19,619,053
Average Shareholders' Equity		1,367,946			1,390,653			1,598,076			1,441,706			1,463,566

Per Share of Common Stock
Book Value ⁴	$	27.55		$	29.09		$	35.16		$	27.55		$	35.16
Tangible Book Value		26.76			28.30			34.38			26.76			34.38
Market Value
Closing		76.12			74.40			82.17			76.12			82.17
High		85.45			84.93			87.12			92.38			99.10
Low		70.89			70.97			75.68			70.89			75.65

				September 30,			June 30,			December 31,			September 30,
				2022			2022			2021			2021
As of Period End:
Balance Sheet Totals
Loans and Leases				$	13,321,606		$	12,951,573		$	12,259,076		$	12,072,750
Total Assets					23,134,040			23,232,699			22,784,941			22,965,383
Total Deposits					20,888,773			21,025,681			20,360,108			20,493,678
Other Debt					10,319			10,343			10,391			10,414
Total Shareholders' Equity					1,282,384			1,348,746			1,611,611			1,597,109

Asset Quality
Non-Performing Assets				$	13,868		$	15,493		$	18,966		$	20,620
Allowance for Credit Losses - Loans and Leases					146,436			148,512			157,821			167,920
Allowance to Loans and Leases Outstanding ⁵					1.10	%		1.15	%		1.29	%		1.39	%

Capital Ratios ⁶
Common Equity Tier 1 Capital Ratio					11.42	%		11.66	%		12.12	%		12.02	%
Tier 1 Capital Ratio					12.72			13.01			13.56			13.47
Total Capital Ratio					13.82			14.14			14.81			14.72
Tier 1 Leverage Ratio					7.28			7.29			7.32			7.10
Total Shareholders' Equity to Total Assets					5.54			5.81			7.07			6.95
Tangible Common Equity to Tangible Assets ⁷					4.64			4.90			6.15			6.04
Tangible Common Equity to Risk-Weighted Assets ⁷					7.97			8.72			11.44			11.46

Non-Financial Data
Full-Time Equivalent Employees					2,115			2,114			2,056			2,049
Branches					51			54			54			54
ATMs					316			310			307			303

¹ Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
² Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
³ Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.
⁴ Book Value was revised from $35.30 for the three months ended and nine months ended September 30, 2021.
⁵ The numerator comprises the Allowance for Credit Losses - Loans and Leases.
⁶ Regulatory capital ratios as of September 30, 2022 are preliminary.
⁷ Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures.
Tangible common equity is defined by the Company as common shareholders' equity minus goodwill.
See Table 2 "Reconciliation of Non-GAAP Financial Measures"

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)	2022			2022			2021			2021

Total Shareholders' Equity	$	1,282,384		$	1,348,746		$	1,611,611		$	1,597,109
Less: Preferred Stock		180,000			180,000			180,000			180,000
Goodwill		31,517			31,517			31,517			31,517
Tangible Common Equity	$	1,070,867		$	1,137,229		$	1,400,094		$	1,385,592

Total Assets		23,134,040			23,232,699			22,784,941			22,965,383
Less: Goodwill		31,517			31,517			31,517			31,517
Tangible Assets	$	23,102,523		$	23,201,182		$	22,753,424		$	22,933,866

Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements ¹	$	13,428,188		$	13,038,852		$	12,236,805		$	12,093,010

Total Shareholders' Equity to Total Assets		5.54	%		5.81	%		7.07	%		6.95	%
Tangible Common Equity to Tangible Assets (Non-GAAP)		4.64	%		4.90	%		6.15	%		6.04	%

Tier 1 Capital Ratio ¹		12.72	%		13.01	%		13.56	%		13.47	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) ¹		7.97	%		8.72	%		11.44	%		11.46	%

¹ Regulatory capital ratios as of September 30, 2022 are preliminary.

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)	2022			2022			2021			2022			2021
Interest Income
Interest and Fees on Loans and Leases	$	115,013		$	101,663		$	100,570		$	311,115		$	300,763
Income on Investment Securities
Available-for-Sale		16,995			17,984			16,396			52,079			48,700
Held-to-Maturity		20,243			18,838			16,754			57,782			43,630
Deposits		10			5			2			19			9
Funds Sold		2,335			719			382			3,181			779
Other		322			353			159			877			526
Total Interest Income		154,918			139,562			134,263			425,053			394,407
Interest Expense
Deposits		10,296			3,535			3,837			16,184			12,318
Securities Sold Under Agreements to Repurchase		2,745			2,794			3,423			8,311			10,426
Funds Purchased		40			57			-			99			1
Short-Term Borrowings		-			92			-			92			-
Other Debt		182			182			184			547			760
Total Interest Expense		13,263			6,660			7,444			25,233			23,505
Net Interest Income		141,655			132,902			126,819			399,820			370,902
Provision for Credit Losses		-			(2,500	)		(10,400	)		(8,000	)		(40,800	)
Net Interest Income After Provision for Credit Losses		141,655			135,402			137,219			407,820			411,702
Noninterest Income
Trust and Asset Management		10,418			11,457			11,415			33,151			34,375
Mortgage Banking		1,002			1,247			3,136			4,989			12,056
Service Charges on Deposit Accounts		7,526			7,309			6,510			22,107			18,703
Fees, Exchange, and Other Service Charges		13,863			14,193			13,604			41,008			41,018
Investment Securities Losses, Net		(2,147	)		(1,295	)		(1,259	)		(4,987	)		(39	)
Annuity and Insurance		1,034			870			735			2,695			2,348
Bank-Owned Life Insurance		2,486			2,658			1,897			7,493			5,877
Other		(3,522	)		5,719			5,340			9,913			14,441
Total Noninterest Income		30,660			42,158			41,378			116,369			128,779
Noninterest Expense
Salaries and Benefits		59,938			57,769			56,447			177,631			168,859
Net Occupancy		10,186			9,930			3,079			29,942			17,216
Net Equipment		9,736			9,543			8,924			28,432			26,598
Data Processing		4,616			4,607			4,722			13,783			15,601
Professional Fees		3,799			3,542			2,948			10,599			9,468
FDIC Insurance		1,680			1,590			1,594			4,772			4,917
Other		15,794			15,958			18,805			47,403			49,252
Total Noninterest Expense		105,749			102,939			96,519			312,562			291,911
Income Before Provision for Income Taxes		66,566			74,621			82,078			211,627			248,570
Provision for Income Taxes		13,765			17,759			20,025			47,130			59,035
Net Income	$	52,801		$	56,862		$	62,053		$	164,497		$	189,535
Preferred Stock Dividends		1,969			1,969			1,006			5,908			1,006
Net Income Available to Common Shareholders	$	50,832		$	54,893		$	61,047		$	158,589		$	188,529
Basic Earnings Per Common Share	$	1.28		$	1.38		$	1.53		$	4.00		$	4.73
Diluted Earnings Per Common Share	$	1.28		$	1.38		$	1.52		$	3.98		$	4.70
Dividends Declared Per Common Share	$	0.70		$	0.70		$	0.70		$	2.10		$	2.04
Basic Weighted Average Common Shares		39,567,047			39,693,593			39,881,437			39,670,409			39,870,450
Diluted Weighted Average Common Shares		39,758,209			39,842,608			40,080,919			39,848,795			40,088,899


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)													Table 4
	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands)	2022			2022			2021			2022			2021
Net Income	$	52,801		$	56,862		$	62,053		$	164,497		$	189,535
Other Comprehensive Loss, Net of Tax:
Net Unrealized Losses on Investment Securities		(79,600	)		(122,647	)		(7,541	)		(382,371	)		(57,714	)
Defined Benefit Plans		354			352			441			1,059			1,324
Other Comprehensive Loss		(79,246	)		(122,295	)		(7,100	)		(381,312	)		(56,390	)
Comprehensive Income (Loss)	$	(26,445	)	$	(65,433	)	$	54,953		$	(216,815	)	$	133,145


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands)	2022			2022			2021			2021
Assets
Interest-Bearing Deposits in Other Banks	$	5,429		$	2,264		$	2,571		$	2,188
Funds Sold		402,714			576,430			361,536			422,063
Investment Securities
Available-for-Sale		2,424,608			3,955,476			4,276,056			4,353,520
Held-to-Maturity (Fair Value of $4,668,074; $3,823,739; $4,646,619; and $4,895,763)		5,461,160			4,321,693			4,694,780			4,899,880
Loans Held for Sale		418			4,514			26,746			21,965
Loans and Leases		13,321,606			12,951,573			12,259,076			12,072,750
Allowance for Credit Losses		(146,436	)		(148,512	)		(157,821	)		(167,920	)
Net Loans and Leases		13,175,170			12,803,061			12,101,255			11,904,830
Total Earning Assets		21,469,499			21,663,438			21,462,944			21,604,446
Cash and Due from Banks		247,506			260,672			196,327			231,711
Premises and Equipment, Net		208,251			202,063			199,393			199,144
Operating Lease Right-of-Use Assets		94,613			91,901			95,621			97,007
Accrued Interest Receivable		50,143			47,141			45,242			46,751
Foreclosed Real Estate		1,040			2,332			2,332			2,332
Mortgage Servicing Rights		23,104			23,540			22,251			22,099
Goodwill		31,517			31,517			31,517			31,517
Bank-Owned Life Insurance		451,407			448,925			344,587			293,230
Other Assets		556,960			461,170			384,727			437,146
Total Assets	$	23,134,040		$	23,232,699		$	22,784,941		$	22,965,383

Liabilities
Deposits
Noninterest-Bearing Demand	$	7,300,157		$	7,374,055		$	7,275,287		$	7,111,693
Interest-Bearing Demand		4,399,625			4,339,520			4,628,567			4,768,725
Savings		7,954,006			8,054,899			7,456,165			7,540,345
Time		1,234,985			1,257,207			1,000,089			1,072,915
Total Deposits		20,888,773			21,025,681			20,360,108			20,493,678
Securities Sold Under Agreements to Repurchase		425,490			425,490			450,490			450,490
Other Debt		10,319			10,343			10,391			10,414
Operating Lease Liabilities		102,705			99,722			103,210			104,452
Retirement Benefits Payable		37,053			37,532			38,494			49,802
Accrued Interest Payable		3,405			2,545			2,499			3,415
Taxes Payable		13,527			10,607			11,901			9,815
Other Liabilities		370,384			272,033			196,237			246,208
Total Liabilities		21,851,656			21,883,953			21,173,330			21,368,274
Shareholders' Equity
Preferred Stock ($.01 par value; authorized 180,000 shares; issued / outstanding: September 30, 2022; June 30, 2022; December 31, 2021; and September 30, 2021 - 180,000)		180,000			180,000			180,000			180,000
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: September 30, 2022 - 58,728,796 / 40,011,473; June 30, 2022 - 58,727,909 / 40,182,659; December 31, 2021 - 58,554,669 / 40,253,193; and September 30, 2021 - 58,559,089 / 40,305,801)		582			582			581			580
Capital Surplus		615,985			611,694			602,508			598,341
Accumulated Other Comprehensive Loss		(447,694	)		(368,448	)		(66,382	)		(48,568	)
Retained Earnings		2,024,641			2,002,005			1,950,375			1,916,861
Treasury Stock, at Cost (Shares: September 30, 2022 - 18,717,323; June 30, 2022 - 18,545,250; December 31, 2021 - 18,301,476; and September 30, 2021 - 18,253,288)		(1,091,130	)		(1,077,087	)		(1,055,471	)		(1,050,105	)
Total Shareholders' Equity		1,282,384			1,348,746			1,611,611			1,597,109
Total Liabilities and Shareholders' Equity	$	23,134,040		$	23,232,699		$	22,784,941		$	22,965,383


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																				Table 6
											Accumulated
											Other
											Compre-
	Preferred			Common							hensive
	Shares	Preferred		Shares		Common		Capital			Income			Retained			Treasury
(dollars in thousands)	Outstanding	Stock		Outstanding		Stock		Surplus			(Loss)			Earnings			Stock			Total
Balance as of December 31, 2021	180,000	$	180,000	40,253,193		$	581	$	602,508		$	(66,382	)	$	1,950,375		$	(1,055,471	)	$	1,611,611
Net Income	-		-	-			-		-			-			164,497			-			164,497
Other Comprehensive Loss	-		-	-			-		-			(381,312	)		-			-			(381,312	)
Share-Based Compensation	-		-	-			-		11,947			-			-			-			11,947
Common Stock Issued under Purchase and Equity Compensation Plans	-		-	247,966			1		1,530			-			256			3,889			5,676
Common Stock Repurchased	-		-	(489,686	)		-		-			-			-			(39,548	)		(39,548	)
Cash Dividends Declared Common Stock ($2.10 per share)	-		-	-			-		-			-			(84,579	)		-			(84,579	)
Cash Dividends Declared Preferred Stock	-		-	-			-		-			-			(5,908	)		-			(5,908	)
Balance as of September 30, 2022	180,000	$	180,000	40,011,473		$	582	$	615,985		$	(447,694	)	$	2,024,641		$	(1,091,130	)	$	1,282,384

Balance as of December 31, 2020	-	$	-	40,119,312		$	580	$	591,360		$	7,822		$	1,811,979		$	(1,037,234	)	$	1,374,507
Net Income	-		-	-			-		-			-			189,535			-			189,535
Other Comprehensive Loss	-		-	-			-		-			(56,390	)		-			-			(56,390	)
Share-Based Compensation	-		-	-			-		9,658			-			-			-			9,658
Preferred Stock Issued, Net	180,000		180,000	-			-		(4,513	)		-			-			-			175,487
Common Stock Issued under Purchase and Equity Compensation Plans	-		-	466,265			-		1,836			-			(1,218	)		10,541			11,159
Common Stock Repurchased	-		-	(279,776	)		-		-			-			-			(23,412	)		(23,412	)
Cash Dividends Declared Common Stock ($2.04 per share)	-		-	-			-		-			-			(82,429	)		-			(82,429	)
Cash Dividends Declared Preferred Stock	-		-	-			-		-			-			(1,006	)		-			(1,006	)
Balance as of September 30, 2021	180,000	$	180,000	40,305,801		$	580	$	598,341		$	(48,568	)	$	1,916,861		$	(1,050,105	)	$	1,597,109


Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis ¹															Table 7a
	Three Months Ended						Three Months Ended						Three Months Ended
	September 30, 2022						June 30, 2022						September 30, 2021
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense ²		Rate		Balance		Expense ²		Rate		Balance		Expense ²		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	2.9	$	-	1.32	%	$	3.5	$	-	0.59	%	$	3.2	$	-	0.23	%
Funds Sold		411.8		2.3	2.22			273.5		0.7	1.04			999.5		0.4	0.15
Investment Securities
Available-for-Sale
Taxable		3,481.9		17.0	1.95			4,123.1		18.0	1.74			4,454.9		16.3	1.46
Non-Taxable		2.5		-	1.56			2.9		-	1.99			10.1		0.1	4.34
Held-to-Maturity
Taxable		4,645.7		20.1	1.73			4,377.0		18.7	1.71			4,294.6		16.5	1.53
Non-Taxable		35.6		0.2	2.10			35.7		0.2	2.10			64.8		0.4	2.37
Total Investment Securities		8,165.7		37.3	1.82			8,538.7		36.9	1.73			8,824.4		33.3	1.51
Loans Held for Sale		4.3		0.1	4.46			6.3		0.1	4.06			24.6		0.2	2.80
Loans and Leases ³
Commercial and Industrial		1,353.8		12.5	3.66			1,330.0		9.9	2.99			1,252.8		9.1	2.88
Paycheck Protection Program		28.0		0.2	3.02			38.7		0.5	5.26			392.0		7.9	7.98
Commercial Mortgage		3,530.9		33.3	3.74			3,357.2		26.2	3.13			2,952.7		21.9	2.94
Construction		233.0		2.8	4.81			222.6		2.4	4.39			289.9		2.5	3.38
Commercial Lease Financing		89.1		0.4	1.58			94.2		0.3	1.44			109.3		0.4	1.58
Residential Mortgage		4,526.6		37.4	3.30			4,445.7		36.4	3.26			4,253.2		34.8	3.27
Home Equity		2,144.8		16.4	3.04			2,032.9		14.4	2.85			1,621.4		12.2	2.97
Automobile		795.5		6.4	3.19			759.1		6.1	3.20			718.7		6.2	3.41
Other ⁴		425.0		5.9	5.48			420.4		5.6	5.38			368.3		5.7	6.16
Total Loans and Leases		13,126.7		115.3	3.49			12,700.8		101.8	3.21			11,958.3		100.7	3.35
Other		36.9		0.3	3.49			38.2		0.3	3.70			31.5		0.2	2.02
Total Earning Assets		21,748.3		155.3	2.84			21,561.0		139.8	2.60			21,841.5		134.8	2.45
Cash and Due from Banks		233.5						238.4						252.2
Other Assets		1,154.0						1,091.9						899.3
Total Assets	$	23,135.8					$	22,891.3					$	22,993.0

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	4,286.0		1.4	0.13		$	4,442.2		0.7	0.06		$	4,707.1		0.7	0.06
Savings		7,962.0		6.6	0.33			7,692.8		1.9	0.10			7,687.0		1.8	0.09
Time		1,146.9		2.3	0.79			950.4		0.9	0.40			1,267.0		1.4	0.44
Total Interest-Bearing Deposits		13,394.9		10.3	0.30			13,085.4		3.5	0.11			13,661.1		3.9	0.11
Short-Term Borrowings		4.9		0.1	3.17			59.8		0.1	0.98			-		-	-
Securities Sold Under Agreements to Repurchase		425.5		2.7	2.52			447.7		2.8	2.47			547.8		3.4	2.45
Other Debt		10.3		0.2	7.05			10.4		0.3	7.05			10.4		0.2	7.04
Total Interest-Bearing Liabilities		13,835.6		13.3	0.38			13,603.3		6.7	0.20			14,219.3		7.5	0.21
Net Interest Income			$	142.0					$	133.1					$	127.3
Interest Rate Spread					2.46	%					2.40	%					2.24	%
Net Interest Margin					2.60	%					2.47	%					2.32	%
Noninterest-Bearing Demand Deposits		7,468.8						7,484.0						6,812.7
Other Liabilities		463.5						413.3						362.9
Shareholders' Equity		1,367.9						1,390.7						1,598.1
Total Liabilities and Shareholders' Equity	$	23,135.8					$	22,891.3					$	22,993.0

¹ Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.

² Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $343,000, $221,000, and $315,000

for the three months ended September 30, 2022, June 30, 2022, and September 30, 2021, respectively.

³ Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

⁴ Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis ¹									Table 7b
	Nine Months Ended						Nine Months Ended
	September 30, 2022						September 30, 2021
	Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense ²		Rate		Balance		Expense ²		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	3.3	$	-	0.76	%	$	2.9	$	-	0.44	%
Funds Sold		308.6		3.2	1.36			833.7		0.8	0.12
Investment Securities
Available-for-Sale
Taxable		3,998.2		52.0	1.74			4,252.9		48.4	1.52
Non-Taxable		2.8		-	1.84			11.5		0.4	4.29
Held-to-Maturity
Taxable		4,530.4		57.4	1.69			3,728.9		42.9	1.53
Non-Taxable		35.7		0.6	2.10			48.2		0.9	2.46
Total Investment Securities		8,567.1		110.0	1.71			8,041.5		92.6	1.54
Loans Held for Sale		8.1		0.2	3.43			25.5		0.5	2.81
Loans and Leases ³
Commercial and Industrial		1,339.0		31.4	3.13			1,281.0		28.1	2.94
Paycheck Protection Program		51.7		2.5	6.59			545.9		20.0	4.90
Commercial Mortgage		3,350.3		81.3	3.25			2,894.5		64.5	2.98
Construction		227.7		7.3	4.30			280.0		7.3	3.51
Commercial Lease Financing		94.0		1.0	1.49			107.1		1.2	1.52
Residential Mortgage		4,439.1		108.6	3.26			4,211.8		106.2	3.36
Home Equity		2,026.5		44.1	2.91			1,596.4		36.9	3.09
Automobile		764.2		18.4	3.21			712.5		18.4	3.46
Other ⁴		416.5		17.0	5.44			373.2		18.1	6.48
Total Loans and Leases		12,709.0		311.6	3.27			12,002.4		300.7	3.35
Other		37.2		0.9	3.14			32.4		0.5	2.17
Total Earning Assets		21,633.3		425.9	2.63			20,938.4		395.1	2.52
Cash and Due from Banks		235.0						259.6
Other Assets		1,090.9						881.2
Total Assets	$	22,959.2					$	22,079.2

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	4,459.9		2.6	0.08		$	4,450.6		2.0	0.06
Savings		7,733.3		9.5	0.16			7,414.6		5.0	0.09
Time		1,023.6		4.1	0.53			1,437.1		5.3	0.49
Total Interest-Bearing Deposits		13,216.8		16.2	0.16			13,302.3		12.3	0.12
Short-Term Borrowings		23.9		0.2	1.05			0.8		-	0.09
Securities Sold Under Agreements to Repurchase		441.1		8.3	2.48			572.7		10.4	2.40
Other Debt		10.3		0.6	7.05			33.5		0.8	3.03
Total Interest-Bearing Liabilities		13,692.1		25.3	0.25			13,909.3		23.5	0.22
Net Interest Income			$	400.6					$	371.6
Interest Rate Spread					2.38	%					2.30	%
Net Interest Margin					2.47	%					2.37	%
Noninterest-Bearing Demand Deposits		7,404.5						6,316.8
Other Liabilities		420.9						389.5
Shareholders' Equity		1,441.7						1,463.6
Total Liabilities and Shareholders' Equity	$	22,959.2					$	22,079.2

¹ Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
² Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $818,000 and $836,000
for nine months ended September 30, 2022 and September 30, 2021, respectively.
³ Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
⁴Comprised 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 8a
	Three Months Ended September 30, 2022
	Compared to June 30, 2022
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	0.5		$	1.1		$	1.6
Investment Securities
Available-for-Sale
Taxable		(3.0	)		2.0			(1.0	)
Held-to-Maturity
Taxable		1.2			0.2			1.4
Total Investment Securities		(1.8	)		2.2			0.4
Loans and Leases
Commercial and Industrial		0.2			2.4			2.6
Paycheck Protection Program		(0.1	)		(0.2	)		(0.3	)
Commercial Mortgage		1.5			5.6			7.1
Construction		0.1			0.3			0.4
Commercial Lease Financing		0.1			-			0.1
Residential Mortgage		0.6			0.4			1.0
Home Equity		0.9			1.1			2.0
Automobile		0.3			-			0.3
Other ²		0.1			0.2			0.3
Total Loans and Leases		3.7			9.8			13.5
Total Change in Interest Income		2.4			13.1			15.5

Change in Interest Expense:
Interest-Bearing Deposits
Demand		-			0.7			0.7
Savings		0.1			4.6			4.7
Time		0.2			1.2			1.4
Total Interest-Bearing Deposits		0.3			6.5			6.8
Short-Term Borrowings		(0.2	)		0.2			-
Securities Sold Under Agreements to Repurchase		(0.2	)		0.1			(0.1	)
Other Debt		-			(0.1	)		(0.1	)
Total Change in Interest Expense		(0.1	)		6.7			6.6

Change in Net Interest Income	$	2.5		$	6.4		$	8.9

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, 2022
	Compared to September 30, 2021
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(0.4	)	$	2.3		$	1.9
Investment Securities
Available-for-Sale
Taxable		(4.0	)		4.7			0.7
Non-Taxable		(0.1	)		-			(0.1	)
Held-to-Maturity
Taxable		1.4			2.2			3.6
Non-Taxable		(0.2	)		-			(0.2	)
Total Investment Securities		(2.9	)		6.9			4.0
Loans Held for Sale		(0.2	)		0.1			(0.1	)
Loans and Leases
Commercial and Industrial		0.8			2.6			3.4
Paycheck Protection Program		(4.6	)		(3.1	)		(7.7	)
Commercial Mortgage		4.8			6.6			11.4
Construction		(0.6	)		0.9			0.3
Commercial Lease Financing		(0.1	)		0.1			-
Residential Mortgage		2.3			0.3			2.6
Home Equity		4.0			0.2			4.2
Automobile		0.6			(0.4	)		0.2
Other ²		0.9			(0.7	)		0.2
Total Loans and Leases		8.1			6.5			14.6
Other		-			0.1			0.1
Total Change in Interest Income		4.6			15.9			20.5

Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.1	)		0.8			0.7
Savings		0.1			4.7			4.8
Time		(0.1	)		1.0			0.9
Total Interest-Bearing Deposits		(0.1	)		6.5			6.4
Short-Term Borrowings		0.1			-			0.1
Securities Sold Under Agreements to Repurchase		(0.8	)		0.1			(0.7	)
Total Change in Interest Expense		(0.8	)		6.6			5.8

Change in Net Interest Income	$	5.4		$	9.3		$	14.7

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 8c
	Nine Months Ended September 30, 2022
	Compared to September 30, 2021
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(0.8	)	$	3.2		$	2.4
Investment Securities
Available-for-Sale
Taxable		(3.0	)		6.6			3.6
Non-Taxable		(0.3	)		(0.1	)		(0.4	)
Held-to-Maturity
Taxable		9.9			4.6			14.5
Non-Taxable		(0.2	)		(0.1	)		(0.3	)
Total Investment Securities		6.4			11.0			17.4
Loans Held for Sale		(0.4	)		0.1			(0.3	)
Loans and Leases
Commercial and Industrial		1.3			2.0			3.3
Paycheck Protection Program		(22.6	)		5.1			(17.5	)
Commercial Mortgage		10.8			6.0			16.8
Construction		(1.5	)		1.5			-
Commercial Lease Financing		(0.1	)		(0.1	)		(0.2	)
Residential Mortgage		5.7			(3.3	)		2.4
Home Equity		9.4			(2.2	)		7.2
Automobile		1.3			(1.3	)		-
Other ²		2.0			(3.1	)		(1.1	)
Total Loans and Leases		6.3			4.6			10.9
Other		0.1			0.3			0.4
Total Change in Interest Income		11.6			19.2			30.8

Change in Interest Expense:
Interest-Bearing Deposits
Demand		-			0.6			0.6
Savings		0.2			4.3			4.5
Time		(1.6	)		0.4			(1.2	)
Total Interest-Bearing Deposits		(1.4	)		5.3			3.9
Short-Term Borrowings		0.2			-			0.2
Securities Sold Under Agreements to Repurchase		(2.5	)		0.4			(2.1	)
Other Debt		(0.8	)		0.6			(0.2	)
Total Change in Interest Expense		(4.5	)		6.3			1.8

Change in Net Interest Income	$	16.1		$	12.9		$	29.0

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


Bank of 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)	2022		2022		2021		2022		2021
Salaries	$	37,792	$	36,721	$	34,676	$	109,445	$	99,658
Incentive Compensation		5,885		6,073		4,677		18,069		15,763
Share-Based Compensation		3,558		3,962		3,335		11,319		9,093
Commission Expense		1,005		1,232		1,772		3,878		6,807
Retirement and Other Benefits		4,448		4,036		4,746		13,177		15,552
Payroll Taxes		2,826		3,034		2,825		10,804		9,819
Medical, Dental, and Life Insurance		2,605		2,591		3,222		8,430		8,850
Separation Expense		1,819		120		1,194		2,509		3,317
Total Salaries and Benefits	$	59,938	$	57,769	$	56,447	$	177,631	$	168,859


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)	2022		2022		2022		2021		2021
Commercial
Commercial and Industrial	$	1,368,966	$	1,323,830	$	1,354,757	$	1,361,921	$	1,325,446
Paycheck Protection Program		22,955		31,964		57,809		126,779		268,480
Commercial Mortgage		3,591,943		3,464,126		3,257,689		3,152,130		2,994,520
Construction		236,498		246,177		248,363		220,254		296,052
Lease Financing		73,989		89,535		98,107		105,108		107,526
Total Commercial		5,294,351		5,155,632		5,016,725		4,966,192		4,992,024
Consumer
Residential Mortgage		4,585,723		4,486,571		4,405,718		4,309,602		4,272,540
Home Equity		2,185,484		2,101,612		1,958,285		1,836,588		1,680,229
Automobile		820,640		775,065		742,934		736,565		727,234
Other ¹		435,408		432,693		420,830		410,129		400,723
Total Consumer		8,027,255		7,795,941		7,527,767		7,292,884		7,080,726
Total Loans and Leases	$	13,321,606	$	12,951,573	$	12,544,492	$	12,259,076	$	12,072,750


Deposits
	September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)	2022		2022		2022		2021		2021
Consumer	$	10,507,946	$	10,554,121	$	10,654,192	$	10,438,844	$	10,150,199
Commercial		8,841,781		8,824,609		8,818,477		8,641,932		8,767,733
Public and Other		1,539,046		1,646,951		1,243,618		1,279,332		1,575,746
Total Deposits	$	20,888,773	$	21,025,681	$	20,716,287	$	20,360,108	$	20,493,678

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)	2022		2022		2022		2021		2021
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial	$	49	$	85	$	99	$	243	$	209
Commercial Mortgage		3,396		3,462		8,065		8,205		8,309
Total Commercial		3,445		3,547		8,164		8,448		8,518
Consumer
Residential Mortgage		4,945		5,179		3,845		3,305		4,348
Home Equity		4,438		4,435		5,638		4,881		5,422
Total Consumer		9,383		9,614		9,483		8,186		9,770
Total Non-Accrual Loans and Leases		12,828		13,161		17,647		16,634

Financial Release

Bank of Hawai‘i Corporation Third Quarter 2022 Financial Results