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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2021

☐

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition

period from to

Commission File Number: 1-6887

BANK OF HAWAII CORP

(Exact name of registrant as specified in its charter)

Delaware		99-0148992
(State of incorporation)		(I.R.S. Employer Identification No.)

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

1-888-643-3888

(Registrant’s telephone number, including area code)

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, par value $0.01 per share				BOH				New York Stock Exchange

Depository Shares, Each Representing 1/40^th Interest in a Share of 4.375% Fixed Rate Non-Cumulative Preferred Stock, Series A

BOH.PRA

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

As of July 20, 2021, there were 40,478,000 shares of common stock outstanding.

Table of Contents

Bank of Hawaii Corporation

Form 10-Q

Index


		Page

Part I - Financial Information

Item 1.	Financial Statements (Unaudited)

	Consolidated Statements of Income – Three and six months ended June 30, 2021, and June 30, 2020	2

	Consolidated Statements of Comprehensive Income – Three and six months ended June 30, 2021, and June 30, 2020	3

	Consolidated Statements of Condition – June 30, 2021, and December 31, 2020	4

	Consolidated Statements of Shareholders’ Equity – Six months ended June 30, 2021, and June 30, 2020	5

	Consolidated Statements of Cash Flows – Six months ended June 30, 2021, and June 30, 2020	6

	Notes to Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	41

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	70

Item 4.	Controls and Procedures	70

Part II - Other Information

Item 1A.	Risk Factors	71

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	73

Item 6.	Exhibits	74

Signatures		75

Table of Contents

Bank of Hawaii Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(dollars in thousands, except per share amounts)	2021			2020		2021			2020
Interest Income
Interest and Fees on Loans and Leases	$	100,894		$	107,628	$	200,193		$	215,838
Income on Investment Securities
Available-for-Sale		16,467			14,576		32,304			31,287
Held-to-Maturity		13,576			16,723		26,876			35,975
Deposits		—			1		7			10
Funds Sold		260			92		397			638
Other		182			125		367			343
Total Interest Income		131,379			139,145		260,144			284,091
Interest Expense
Deposits		4,152			7,954		8,481			22,214
Securities Sold Under Agreements to Repurchase		3,470			4,020		7,003			8,045
Funds Purchased		—			18		1			90
Short-Term Borrowings		—			22		—			61
Other Debt		243			440		576			1,024
Total Interest Expense		7,865			12,454		16,061			31,434
Net Interest Income		123,514			126,691		244,083			252,657
Provision for Credit Losses		(16,100	)		40,400		(30,400	)		74,000
Net Interest Income After Provision for Credit Losses		139,614			86,291		274,483			178,657
Noninterest Income
Trust and Asset Management		11,682			10,550		22,960			21,465
Mortgage Banking		3,058			4,278		8,920			6,973
Service Charges on Deposit Accounts		6,065			5,097		12,193			12,548
Fees, Exchange, and Other Service Charges		13,807			9,417		27,414			22,617
Investment Securities Gains, Net		2,423			13,216		1,220			12,246
Annuity and Insurance		911			883		1,613			1,811
Bank-Owned Life Insurance		2,063			1,649		3,980			3,229
Other		4,422			6,178		9,101			16,528
Total Noninterest Income		44,431			51,268		87,401			97,417
Noninterest Expense
Salaries and Benefits		56,161			50,715		112,412			105,178
Net Occupancy		5,047			8,761		14,137			17,716
Net Equipment		8,796			8,195		17,674			16,651
Data Processing		4,557			4,416		10,879			9,204
Professional Fees		3,114			3,061		6,520			6,269
FDIC Insurance		1,669			1,558		3,323			3,014
Other		17,183			12,186		30,447			27,172
Total Noninterest Expense		96,527			88,892		195,392			185,204
Income Before Provision for Income Taxes		87,518			48,667		166,492			90,870
Provision for Income Taxes		19,985			9,759		39,010			17,220
Net Income	$	67,533		$	38,908	$	127,482		$	73,650
Basic Earnings Per Common Share	$	1.69		$	0.98	$	3.20		$	1.86
Diluted Earnings Per Common Share	$	1.68		$	0.98	$	3.18		$	1.85
Dividends Declared Per Common Share	$	0.67		$	0.67	$	1.34		$	1.34
Basic Weighted Average Common Shares		39,902,583			39,703,735		39,865,268			39,692,695
Diluted Weighted Average Common Shares		40,122,905			39,832,475		40,096,527			39,873,334

The accompanying notes are an integral part of the Consolidated Financial Statements (Unaudited).

Table of Contents

Bank of Hawaii Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(dollars in thousands)	2021			2020		2021			2020
Net Income	$	67,533		$	38,908	$	127,482		$	73,650
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities		(123	)		7,730		(50,173	)		49,289
Defined Benefit Plans		442			374		883			748
Total Other Comprehensive Income (Loss)		319			8,104		(49,290	)		50,037
Comprehensive Income	$	67,852		$	47,012	$	78,192		$	123,687

The accompanying notes are an integral part of the Consolidated Financial Statements (Unaudited).

Table of Contents

Bank of Hawaii Corporation and Subsidiaries

Consolidated Statements of Condition (Unaudited)

(dollars in thousands)	June 30, 2021			December 31, 2020
Assets
Interest-Bearing Deposits in Other Banks	$	2,584		$	1,646
Funds Sold		909,730			333,022
Investment Securities
Available-for-Sale		4,522,941			3,791,689
Held-to-Maturity (Fair Value of $3,965,117 and $3,348,693)		3,947,613			3,262,727
Loans Held for Sale		47,490			82,565
Loans and Leases		12,041,378			11,940,020
Allowance for Credit Losses		(180,385	)		(216,252	)
Net Loans and Leases		11,860,993			11,723,768
Total Earning Assets		21,291,351			19,195,417
Cash and Due From Banks		269,153			279,420
Premises and Equipment, Net		198,508			199,695
Operating Lease Right-of-Use Assets		97,264			99,542
Accrued Interest Receivable		47,046			49,303
Foreclosed Real Estate		2,332			2,332
Mortgage Servicing Rights