false 0000046195 0000046195 2020-10-22 2020-10-22

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

FORM 8-K

 

CURRENT REPORT

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

 

Date of Report	October 26, 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. ☐

 

 

 

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Item 2.02.

Results of Operations and Financial Condition.

On October 26, 2020, Bank of Hawaii Corporation announced its results of operations for the quarter ended September 30, 2020.  The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and incorporated herein by reference.

Item 9.01.

Financial Statements and Exhibits.

(d)

Exhibits

 

Exhibit No.
99.1	October 26, 2020 Press Release: Bank of Hawaii Corporation Third Quarter 2020 Financial Results.  Any internet addresses provided in this release are for informational purposes only and are not intended to be hyperlinks.  Furnished herewith.
99.2	Bank of Hawaii Corporation Third Quarter 2020 Financial Results Supplement
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: October 26, 2020	Bank of Hawaii Corporation
	By:	/s/ Mark A. Rossi
		Mark A. Rossi
		Vice Chairman and Corporate Secretary

 

 

Exhibit 99.1

 

 

Bank of Hawaii Corporation Third Quarter 2020 Financial Results

 

 

FOR IMMEDIATE RELEASE

 

HONOLULU, HI (October 26, 2020) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.95 for the third quarter of 2020 compared with diluted earnings per share of $0.98 in the previous quarter and diluted earnings per share of $1.29 in the same quarter last year.  Net income for the third quarter of 2020 was $37.8 million compared with net income of $38.9 million in the second quarter of 2020 and net income of $52.1 million in the third quarter of 2019.  

 

Loan and lease balances were $11.8 billion at September 30, 2020 down slightly from June 30, 2020, up 7.3 percent from December 31, 2019, and up 8.4 percent compared with September 30, 2019.  Total deposits reached another record high of $17.7 billion at the end of the third quarter of 2020, an increase of 1.8 percent from June 30, 2020, up 12.4 percent from December 31, 2019, and up 15.6 percent compared with September 30, 2019.

 

“Our financial results for the third quarter largely reflect current conditions at the local, national and global level,” said Peter Ho, Chairman, President and CEO.  “Our long-standing commitment to conservatism, liquidity and capital strength positions us relatively well to these extraordinary times.”

 

The return on average assets for the third quarter of 2020 was 0.76 percent, down from 0.82 percent in the previous quarter and 1.17 percent in the same quarter last year.  The return on average equity for the third quarter of 2020 was 11.01 percent compared with 11.58 percent for the second quarter of 2020 and 16.02 percent for the third quarter of 2019.  The efficiency ratio for the third quarter of 2020 was 54.22 percent compared with 49.95 percent in the previous quarter and 58.55 percent in the same quarter last year.  

 

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For the nine-month period ended September 30, 2020, net income was $111.5 million, down from net income of $167.8 million during the same period last year.  Diluted earnings per share were $2.80 for the nine-month period in 2020 compared with diluted earnings per share of $4.11 for the same period in 2019.  The return on average assets for the nine-month period ended September 30, 2020 was 0.78 percent compared with the return on average assets of 1.29 percent for the same nine months in 2019.  The 2020 year-to-date return on average equity was 11.08 percent compared with 17.58 percent for the nine months ended September 30, 2019.  The efficiency ratio for the nine-month period in 2020 was 53.33 percent compared with 56.16 percent in the same period last year.  

 

Financial Highlights

 

Net interest income, on a taxable equivalent basis, for the third quarter of 2020 was $124.5 million, a decrease of $2.5 million compared with $127.0 million in the second quarter of 2020 and a decrease of $0.7 million compared with $125.2 million in the third quarter of 2019.  Net interest income in the second quarter of 2020 included an interest recovery of $2.9 million that increased the margin by 7 basis points.  Net interest income, on a taxable equivalent basis, for the nine-month period in 2020 was $377.8 million, an increase of $2.1 million compared with net interest income of $375.7 million for the same period in 2019.  Analyses of the changes in net interest income are included in Tables 8a, 8b and 8c.

 

The net interest margin was 2.67 percent for the third quarter of 2020, down 16 basis points from 2.83 percent in the previous quarter and down 34 basis points from the net interest margin of 3.01 percent in the third quarter of 2019.  The decrease is largely due to lower rates and higher levels of liquidity due to the strong deposit growth.  The net interest margin for the nine-month period in 2020 was 2.82 percent compared with the net interest margin of 3.05 percent for the same nine-month period last year.  

 

Results for the third quarter of 2020 included a provision for credit losses of $28.6 million compared with $40.4 million in the previous quarter and $4.3 million in the same quarter last year.  The provision for credit losses for the nine-month period in 2020 was $102.6 million compared with a provision for credit losses of $11.3 million during the same period in 2019.  

 

Noninterest income was $41.7 million in the third quarter of 2020, a decrease of $9.6 million compared with $51.3 million in the second quarter of 2020 and a decrease of $4.8 million compared with $46.5 million in the third quarter of 2019.  There were no significant items in noninterest income during the third quarter of 2020 or the third quarter of 2019.  Noninterest income during the second quarter of 2020 included a gain of $14.2 million related to a sale of Visa Class B shares.  Adjusted for the sale of the Visa shares, the increase in noninterest income compared to the prior quarter was primarily due to higher fee income.   The decline in noninterest revenue compared to the third quarter last year is due to lower fee income resulting from decreased customer and visitor activity related to the COVID-19 pandemic.  Noninterest income for the nine-month period in 2020 was $139.2 million, an increase of $3.6 million compared with noninterest income of $135.6 million for the same period in 2019.  

 

Noninterest expense was $89.9 million in the third quarter of 2020, an increase of $1.0 million compared with $88.9 million in the second quarter of 2020 and a decrease of $10.4 million compared with $100.3 million in the third quarter last year.  Noninterest expense during the third quarter of 2020 included a gain of $1.9 million related to the sale of a branch building partially offset by $1.8 million in severance.  There were no significant items in noninterest expense during the second quarter of 2020.  Noninterest expense in the third quarter of 2019 included a $6.0 million increase in legal reserves.   Noninterest expense for the nine-month period in 2020 was $275.2 million, a decrease of $10.9 million compared with noninterest expense of $286.1 million for the same period in 2019.  An analysis of noninterest expenses related to salaries and benefits is included in Table 9.  

 

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The effective tax rate for the third quarter of 2020 was 20.09 percent compared with 20.05 percent in the previous quarter and 22.08 percent in the same quarter last year.  The effective tax rate for the nine-month period in 2020 was 19.34 percent compared with an effective tax rate of 20.89 percent during the same period last year.  

 

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

 

Asset Quality

 

The Company’s asset quality remained relatively stable during the third quarter of 2020.  Total non-performing assets were $18.6 million at September 30, 2020 down from $22.7 million at June 30, 2020 and $21.6 million at September 30, 2019.  As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.16 percent, down from 0.19 percent at the end of the previous quarter and 0.20 percent at the end of the third quarter last year.  

 

Accruing loans and leases past due 90 days or more were $9.6 million at September 30, 2020 compared with $8.9 million at June 30, 2020 and $6.1 million at September 30, 2019.  Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $58.7 million at September 30, 2020, compared with $59.7 million at June 30, 2020 and $46.2 million at September 30, 2019.  More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

 

Net loan and lease charge-offs during the third quarter of 2020 were a net recovery of $1.5 million.  Loan and lease charge-offs of $2.3 million during the quarter were fully offset by recoveries of $3.8 million.  Net charge-offs during the second quarter of 2020 were $5.1 million or 0.18 percent annualized of total average loans and leases outstanding and comprised of $8.3 million in charge-offs and recoveries of $3.2 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 comprised of $5.8 million in charge-offs and recoveries of $2.8 million.  Net charge-offs during the nine-month period in 2020 were $7.4 million or 0.09 percent annualized of total average loans and leases outstanding compared with net charge-offs of $9.0 million or 0.11 percent annualized of total average loans and leases outstanding for the nine-month period in 2019.  

 

The allowance for credit losses was $203.5 million at September 30, 2020 compared with $173.4 million at June 30, 2020 and $108.9 million at September 30, 2019.  The ratio of the allowance for credit losses to total loans and leases was 1.73 percent at September 30, 2020 compared with 1.47 percent at June 30, 2020 and 1.00 percent at September 30, 2019.  The reserve for unfunded commitments was $2.3 million at September 30, 2020 compared with $2.5 million at June 30, 2020 and $6.8 million at September 30, 2019.  Details of loan and lease charge-offs, recoveries and components of the total reserve for credit losses are summarized in Table 12.

 

Other Financial Highlights

 

Total assets increased to $20.1 billion at September 30, 2020 compared with $19.8 billion at June 30, 2020 and $17.7 billion at September 30, 2019.  Average total assets were $19.7 billion during the third quarter of 2020 compared with $19.2 billion during the previous quarter and $17.6 billion during the third quarter last year.  

 

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The investment securities portfolio was $6.4 billion at September 30, 2020, up from $6.0 billion at June 30, 2020 and $5.5 billion at September 30, 2019 due to strong growth in deposits that outpaced loan growth.  The portfolio remains largely comprised of securities issued by U.S. government agencies and includes $3.2 billion in securities held to maturity and $3.2 billion in securities available for sale.   The securities portfolio at June 30, 2020 included $3.3 billion in securities held to maturity and $2.7 billion in securities available for sale compared with $2.9 billion in securities held to maturity and $2.6 billion in securities available for sale at September 30, 2019.

 

Total loans and leases were $11.8 billion at September 30, 2020.  Average total loans and leases were $11.7 billion during the third quarter of 2020 up slightly from the previous quarter and up 9.0 percent from $10.8 billion during the same quarter last year.  The commercial loan portfolio was $5.0 billion at September 30, 2020, down $5.9 million or 0.1 percent from June 30, 2020, and up $860.1 million or 20.7 percent from September 30, 2019.  The consumer loan portfolio was $6.8 billion at September 30, 2020, down $5.9 million or 0.1 percent from June 30, 2020, and up $52.2 million or 0.8 percent from September 30, 2019.  

 

Total deposits were $17.7 billion at September 30, 2020.  Average total deposits were $17.3 billion during the third quarter of 2020, up 3.5 percent from $16.7 billion during the previous quarter and up 12.7 percent from $15.3 billion during the same quarter last year.  Consumer deposits increased to $8.9 billion at September 30, 2020, up $136.9 million or 1.6 percent from $8.8 billion at June 30, 2020 and up $1.0 billion or 12.8 percent from $7.9 billion at September 30, 2019.  Commercial deposits were $7.2 billion at September 30, 2020, down $135.5 million or 1.9 percent from $7.3 billion at June 30, 2020 and were up $1.0 billion or 16.3 percent from $6.2 billion at September 30, 2019.  Other deposits, including public funds, were $1.7 billion at September 30, 2020, an increase of $314.3 million or 23.1 percent from June 30, 2020 and up $381.7 million or 29.5 percent from September 30, 2019. Deposit balances are summarized in Tables 7a, 7b, and 10.

 

Total shareholders’ equity increased to $1.36 billion at September 30, 2020 compared with $1.35 billion at June 30, 2020 and $1.29 billion at September 30, 2019.  There were no shares repurchased during the third quarter of 2020. The Tier 1 Capital Ratio at September 30, 2020 was 12.09 percent compared with 12.04 percent at June 30, 2020 and 12.33 percent at September 30, 2019.  The Tier 1 leverage ratio at September 30, 2020 was 6.81 percent compared with 6.90 percent at June 30, 2020 and 7.32 percent at September 30, 2019.

 

The Company’s Board of Directors declared a quarterly cash dividend of $0.67 per share on the Company’s outstanding shares.  The dividend will be payable on December 14, 2020 to shareholders of record at the close of business on November 30, 2020.  

 

Conference Call Information

 

The Company will review its third quarter 2020 financial results today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time).  The live call, including a slide presentation, will be accessible on the investor relations link of Company’s website, www.boh.com. The webcast link is https://edge.media-server.com/mmc/p/xr9ecjhk.  The toll-free number for the teleconference is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers.  Use the pass code “Bank of Hawaii” to access the call.  A replay will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, October 26, 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 6164797 when prompted.  In addition, the replay will be available on the Company's website, www.boh.com.

 

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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, 2019, which was filed with the U.S. Securities and Exchange Commission.  We have not committed to update forward-looking statements to reflect later events or circumstances.

 

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

 

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Bank of Hawaii Corporation Third Quarter 2020 Financial Results October 26, 2020 Exhibit 99.2

2020 Unemployment Source: UHERO Base Case as of 9/25/20 Hawaii Unemployment Rate Experience & Forecast BAR CHART

Economic Forecast Source: UHERO Forecast Updates Hawaii Unemployment Rate Line Chart

Economic Forecast Personal Income Source: UHERO Forecast Updates BAR CHARTS Real GDP

Hawaii Real Estate Market Oahu Market Indicators – 2020 vs 2019 SINGLE FAMILY HOMES 2020 YTD 2019 YTD % Sep 2020 Sep 2019 % Closed Sales 2,735 2,774 -1.4% 391 347 12.7% Median Sales Price (000s) $811 $785 3.3% $880 $777 13.3% Median Days on Market 17 23 -26.1% 9 29 -69.0% Months of Inventory 1.9 3.5 -45.7% 1.9 3.5 -45.7% CONDOMINIUMS 2020 YTD 2019 YTD % Sep 2020 Sep 2019 % Closed Sales 3,305 4,074 -18.9% 456 466 -2.1% Median Sales Price (000s) $430 $425 1.2% $445 $445 0.0% Median Days on Market 28 26 7.7% 21 27 -22.2% Months of Inventory 4.0 3.9 2.6% 4.0 3.9 2.6% Source: Honolulu Board of Realtors, compiled from MLS data

Daily Arrivals Source: Hawaii Tourism Authority Trans-Pacific Passenger Arrivals in Thousands BAR CHART

COVID-19 Cases Source: USAFacts STATES / TERRITORIES WITH LOWEST CASES IN LAST 7 DAYS PER 100,000 Vermont 13 Maine 16 Hawaii 38 New Hampshire 42 Washington, D.C. 52 Oregon 54 New York 54 California 58 Washington 60 Maryland 71 United States 128 Source: NY Times as of 10/21/2020 Hawaii New COVID-19 Cases (7-Day Average) Line Chart

Strong Credit Metrics Continued Stable Loan Growth Strong Deposit Growth Well Managed Funding Costs Strong Liquidity Solid Capital Levels Well Positioned

Credit Overview

40% Commercial 67% Real Estate Secured Wtd Avg LTV 55% 66% w/ BOH ≥ 10 yrs Avg Balance $0.5 MM CRE C&I Residential Mortgage Home Equity Auto Leasing Other Construction 60% Consumer 83% Real Estate Secured Wtd Avg LTV 56% 56% w/ BOH ≥ 10 yrs 76% of Portfolio Secured with Quality Real Estate with Combined Weighted Average Loan to Value of 56% Note: Excludes $544 MM in PPP loan balances Loan Portfolio Excluding PPP 12% 36% 14% 6% 4% 24% 2% 1%

Credit Quality $ in millions Net Charge-offs Nonperforming Assets Delinquencies Criticized Bar Charts

Portfolio 12/31/2019 CECL adoption impact 1Q20 Build 3/31/2020 2Q20 Build 6/30/2020 3Q20 Build 9/30/2020 Consumer 36.2 17.1 16.9 70.2 30.7 100.9 22.3 123.2 Commercial 73.8 (18.8) 13.0 68.0 4.5 72.5 7.8 80.3 Total 110.0 (1.7) 29.9 138.2 35.2 173.4 30.1 203.5 Coverage 1.00% -0.01% 0.23% 1.22% 0.25% 1.47% 0.26% 1.73% Coverage excluding PPP 1.00% -0.01% 0.23% 1.22% 0.31% 1.53% 0.27% 1.80% Third Quarter 2020 Reserve Build $ in millions

Customer Relief Update Deferrals & Extensions as of 9/30/20 $1,528 million (13.0%) Consumer 5.9% Outstandings Commercial 7.1% Outstandings Total Modifications 13.0% Outstandings Pie charts

Weekly Payment Deferrals Granted 16,778 Accounts as of September 30th Deceleration in Activity Since Peak in April 99% decline since peak Customer Relief Update $ in millions Line Charts

Customer Relief Update $1,013 Million (8.6%) Deferrals & Extensions as of 10/23/20 Consumer 4.5% Outstandings Commercial 4.1% Outstandings Total Modifications 8.6% Outstandings Pie charts

Customer Relief Update 45% Decline from June 30, 2020 8.6% 15.7% 13.0% Deferrals and Extension Timeline Bar Chart

69% Secured with 61% Weighted Average LTV as of 9/30/20 60% Wtd Avg LTV 780 Wtd Avg FICO 3% <700 FICO/>70% LTV 65% Wtd Avg CLTV 752 Wtd Avg FICO 10% <700 FICO/>70% LTV 675 Wtd Avg FICO 42% ≥ 700 FICO 719 Wtd Avg FICO 64% ≥ 700 FICO Consumer Customer Relief * Indirect excludes recourse loans ($23MM) **Other includes Direct Installment loans and Auto Lease. Origination FICO used for Auto Lease. $668 million (5.7%) Bar Chart

85% Secured with 51% Weighted Average LTV as of 9/30/20 51% Wtd Avg LTV 81% ≤ 65% LTV $3.6MM Avg Loan 45% Wtd Avg LTV 48% ≤ 65% LTV $2.1MM Avg Loan $0.3MM Avg Loan Commercial Customer Relief $837 million (7.1%) Bar Chart

all others Lodging` retail retail lodging High Risk Industries $1,456 million (12%) / $1,305 million (11%) Excluding PPP Retail Balance Growth (Q3 V Q2) Lodging Balance Growth (Q3 V Q2) Restaurant/Entertainment Balance Growth (Q3 V Q2) Bar Charts Pie chart

Retail $648 million (5%) - Excluding PPP 91% Real Estate Secured 55% Wtd Avg LTV Average Exposure $3.4 MM Largest Exposure $40 MM 66% of Portfolio has an LTV ≤ 65% 96.9% is Secured or has Essential Anchor 0.9% Unsecured and Deferred 99.95% Secured or Paying Interest Real Estate Secured Secured 91% Unsecured 9% Deferred % Secured Yes No Total 27.2% 64.1% 91.3% 0.9% 7.7% 8.7% 28.2% 71.8% 100.0% Secured LTV Distribution Bar chart

Lodging $503 million (4%) - Excluding PPP 78% Real Estate Secured 51% Wtd Avg LTV Average Exposure $8.9 MM Largest Exposure $40 MM 79% of Portfolio has an LTV ≤ 65% 93% of Unsecured Outstandings to Global Hotel and Timeshare Brands 5.3% Unsecured and Deferred 95.1% Secured or Paying Interest Real Estate Secured Secured 78% Unsecured 22% Deferred % Secured Yes No Total 47.4% 30.3% 77.8% 5.3% 16.9% 22.2% 52.8% 47.2% 100.0% Secured LTV Distribution Bar chart

Restaurant/Entertainment $154 million (1%) - Excluding PPP 38% Real Estate Secured 64% Wtd Avg LTV Average Exposure $1.6 MM Largest Exposure $25.7 MM 47% of Portfolio has an LTV ≤ 65% $32.9 MM Unsecured and Deferred Average Exposure $0.5 MM 98.8% Secured or Paying Interest Real Estate Secured Secured 38% Unsecured 62% Deferred % Secured Yes No Total 9.6% 28.4% 38.0% 21.3% 40.6% 62.0% 30.9% 69.1% 100.0% Secured LTV Distribution Bar Chart

Financial Overview

Stable Net Interest Income $ in millions Note: Q2 2020 includes $2.9MM interest recovery Net Interest Income Steady Despite Sharply Lower Interest Rates and Margin Pressure Line Chart

Long History of Deposit Growth History of Deposit Growth by Segment $ in millions CAGR: 6.18% Line Chart

Deposit Rate Trends Well-Managed Deposit Rates and Funding Costs Remain Low $ in millions Line Chart

Ample Liquidity to Fund Continued Growth Loan to Deposit Ratio Compared with Peers Strong Liquidity Note: S&P Regional Bank Index excluding banks greater than $50 B Line Chart

Investment Portfolio & Duration $ in millions Investment Securities Portfolio Consists of High-Quality Securities Highly liquid and pledgeable Secure and reliable cash flows Duration (yrs) AFS 3.59 HTM 3.49 Total 3.54 Premium Amortization $9.1 Moody’s Rating AAA 96% AA 1% A 3% Total Investment Portfolio Bar Chart

Long History of Stable Loan Growth History of Loan Growth by Segment $ in millions CAGR: 8.47% Bar Chart

Disciplined Expense Management $ in millions Source: UHERO, Inflation (Honolulu CPI) NIE CAGR: 0.8% Average Inflation: 1.9% Long Term Disciplined Expense Management Bar Chart

Reserve and Capital Build $ in millions Note: Dividend amount shown is pre-tax YTD 2020 Bar Chart

Growth in Risk-Based Capital, Well in Excess of Required Minimums Fortress Capital Position Improving Tier 1 Capital CET 1 Total Capital Bar Chart

Financial Summary $ in millions, except per share amounts 3Q 2020 2Q 2020 3Q 2019 ∆ 2Q 2020 ∆ 3Q 2019 Net Interest Income $ 124.2 $ 126.7 $ 124.9 $ (2.5) $ (0.7) Noninterest Income 41.7 51.3 46.5 (9.5) (4.8) Total Revenue 165.9 178.0 171.4 (12.1) (5.5) Noninterest Expense 89.9 88.9 100.3 1.1 (10.4) Operating Income 76.0 89.1 71.1 (13.1) 4.9 Credit Provision 28.6 40.4 4.3 (11.8) 24.4 Income Taxes 9.5 9.8 14.8 (0.2) (5.2) Net Income $ 37.8 $ 38.9 $ 52.1 $ (1.1) $ (14.2)       Diluted EPS $ 0.95 $ 0.98 $ 1.29 $ (0.03) $ (0.34) End of Period Balances Investment Portfolio 6,389 6,003 5,541 6.4% 15.3% Loans & Leases 11,794 11,805 10,881 -0.1% 8.4% Total Deposits 17,739 17,423 15,341 1.8% 15.6% Shareholders’ Equity 1,362 1,352 1,291 0.7% 5.4% Note: Numbers may not add up due to rounding

Performance Metrics 3Q 2020 2Q 2020 3Q 2019 ∆ 2Q 2020 ∆ 3Q 2019 Return on Assets 0.76% 0.82% 1.17% -0.06% -0.41% Return on Equity 11.01% 11.58% 16.02% -0.57% -5.01% Net Interest Margin 2.67% 2.83% 3.01% -0.16% -0.34% Efficiency Ratio 54.2% 50.0% 58.5% 4.3% -4.3% Note: Numbers may not add up due to rounding

Bank of Hawaii Corporation Third Quarter 2020 Financial Results October 26, 2020

APPENDIX

Residential Mortgage Current LTV Residential Mortgage – Current LTV Bar Chart

Residential Mortgage Monitoring FICO Residential Mortgage – Monitoring FICO Bar Chart

Home Equity Current CLTV Home Equity – Current CLTV Bar Chart

Home Equity Monitoring FICO Home Equity – Monitoring FICO Bar Chart

Automobile DTI Automobile – DTI Bar Chart

Automobile Monitoring FICO Automobile – Monitoring FICO Bar Chart

Other Consumer Delinquency Status Other Consumer - Delinquency Status Bar Chart

Other Consumer Monitoring FICO Other Consumer - Monitoring FICO Bar Chart

Commercial & Industrial Leveraged vs Other Commercial & Industrial - Leveraged Leveraged 3% Other 97%

Commercial Mortgage Current LTV Commercial Mortgage - Current LTV Bar Chart

Commercial Mortgage Detail Current LTV CM Industrial - Current LTV CM Multi Family - Current LTV CM Retail - Current LTV CM Lodging - Current LTV Bar Charts

Construction Current LTV Construction - Current LTV Bar Chart

Lease Financing Leveraged vs Non-Leveraged Lease Financing - Leveraged vs Non-Leveraged Leveraged 22% Non-Leveraged 78%

As of September 30, 2020 Solid Base of Core Customers and Core Deposits 90% Core Consumer and Commercial Customers 90% Core Checking and Savings Deposits Strong Mix of Deposits Public Funds 10% Commercial 40% Consumer 50% Time 10% Savings 38% Checking 52%

Disciplined Capital Management $ in millions Bar Chart

Note: Historical dividends adjusted for stock splits. YTD 2020 dividend annualized. Financial Crisis Recession Recession Long and Unbroken History of Dividends Unbroken History of Dividends Line Chart

History of Deposit Growth by Product $ in millions Bar Chart