0000046195false00000461952024-10-282024-10-280000046195us-gaap:CommonStockMember2024-10-282024-10-280000046195us-gaap:SeriesAPreferredStockMember2024-10-282024-10-280000046195us-gaap:SeriesBPreferredStockMember2024-10-282024-10-28

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

FORM 8-K

 

CURRENT REPORT

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

 

Date of Report	October 28, 2024
(Date of earliest event reported)

 

BANK OF HAWAII CORPORATION

(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)

Not Applicable

(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(s)		Name of each exchange on which registered
Common Stock, par value $0.01 per share		BOH		New York Stock Exchange
Depository Shares, Each Representing 1/40th Interest in a Share of 4.375% Fixed Rate Non-Cumulative Preferred Stock, Series A		BOH.PRA		New York Stock Exchange
Depository Shares, Each Representing 1/40th Interest in a Share of 8.000% Fixed Rate Non-Cumulative Preferred Stock, Series B		BOH.PRB		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:

 

☐	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 28, 2024, Bank of Hawaii Corporation announced its results of operations for the quarter ended September 30, 2024. The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit No.
99.1	October 28, 2024 Press Release: Bank of Hawaii Corporation Third Quarter 2024 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 2024 Financial Report
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 28, 2024	Bank of Hawaii Corporation
	By:	/s/ Patrick M. McGuirk
		Patrick M. McGuirk
		Vice Chair and Chief Administrative Officer

 

 

 

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Bank of Hawai‘i Corporation Third Quarter 2024 Financial Results

 

 

 

FOR IMMEDIATE RELEASE

 

 

HONOLULU, HI (October 28, 2024) -- Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $0.93 for the third quarter of 2024, compared with diluted earnings per common share of $0.81 in the linked quarter and $1.17 in the same period last year. Net income for the third quarter of 2024 was $40.4 million, up 18.4% from the linked quarter and down 15.8% from the same period last year. The return on average common equity for the third quarter of 2024 was 11.50% compared with 10.41% during the linked quarter and 15.38% during the same period last year.

 

“For the third quarter 2024, we are pleased to report improved net interest income and noninterest income, alongside controlled expenses and steady loan and deposit performance. Credit remained excellent,” said Peter Ho, Chairman and CEO.

 

 

Financial Highlights

 

Net interest income for the third quarter of 2024 was $117.6 million, an increase of 2.4% from the linked quarter and a decrease of 2.7% as compared to the same period last year. The increase from the previous quarter was primarily due to increases in the average balance and yield on our earning assets, partially offset by increases in the average balance and cost of our interest-bearing liabilities. The decrease from same period last year was primarily due to decreases in the average balance of our earnings assets and higher funding costs, partially offset by higher earning asset yields and lower average balance of our interest-bearing liabilities.

 

Net interest margin was 2.18% in the third quarter of 2024, an increase of 3 basis points from the linked quarter and an increase of 5 basis points from the same period last year. The increase from the linked quarter was primarily due to higher earning asset yields, partially offset by higher funding costs. The increase from the same period last year was primarily due to higher earning asset yields and lower average balance of our earning assets, partially offset by higher funding costs.

 

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The average yield on loans and leases was 4.82% in the third quarter of 2024, up 6 basis points from the linked quarter and up 48 basis points from the same period last year. The average yield on total earning assets was 4.06% in the third quarter of 2024, up 7 basis points from the linked quarter and up 34 basis points from the same period last year. The average cost of interest-bearing deposits was 2.52% in the third quarter of 2024, up 6 basis points from the linked quarter and up 57 basis points from the same period last year. The average cost of total deposits, including noninterest-bearing deposits, was 1.87%, up 6 basis points from the linked quarter and up 47 basis points from the same period last year. The changes in yields and rates over the linked quarter and year over year period reflected deposit mix shift and repricing.

 

Noninterest income was $45.1 million in the third quarter of 2024, an increase of 7.2% from the linked quarter and a decrease of 10.4% from the same period in 2023. Noninterest income in the third quarter of 2023 included a $14.7 million gain from the early termination of private repurchase agreements, partially offset by a $4.6 million net loss related to investment securities sales and a negative $0.8 million adjustment related to a change in the Visa Class B conversion ratio. Adjusted for these items, noninterest income increased by 9.9% from adjusted noninterest income in the same period in 2023. The increase from the same period last year was primarily due to increases in trust and asset management income, and fees, exchange, and other service charges.

 

Noninterest expense was $107.1 million in the third quarter of 2024, a decrease of 2.0% from the linked quarter and an increase of 1.4% from the same period last year. Noninterest expense in the second quarter of 2024 included an industry-wide FDIC Special Assessment of $2.6 million, separation expenses of $0.8 million and $0.6 million of other expenses that are not expected to recur in 2024. Noninterest expense in the third quarter of 2023 included separation expenses of $2.1 million and extraordinary expenses related to the Maui wildfires of $0.4 million. Adjusted for these items, noninterest expense increased by 1.7% from adjusted noninterest expense in the linked quarter and increased by 3.9% from adjusted noninterest expense in the same period last year.

 

The effective tax rate for the third quarter of 2024 was 23.33% compared with 24.77% during the linked quarter and 24.76% during the same period last year. The lower effective tax rate in the third quarter of 2024 as compared to the linked quarter was mainly due to a decrease in discrete items and an increase in tax exempt income. The lower effective tax rate in the third quarter of 2024 as compared to the same period last year was primarily due to an increase in tax benefits from low-income housing investments and an increase in tax exempt income.

 

Asset Quality

 

The Company’s overall asset quality remained strong during the third quarter of 2024. Provision for credit losses for the third quarter of 2024 was $3.0 million compared with $2.4 million in the linked quarter and $2.0 million in the same period last year.

 

Total non-performing assets were $19.8 million at September 30, 2024, up $4.6 million from June 30, 2024 and up $8.3 million from September 30, 2023. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.14% at the end of the quarter, an increase of 3 basis points from the linked quarter and an increase of 6 basis points from the same period last year.

 

Net loan and lease charge-offs during the third quarter of 2024 were $3.8 million or 11 basis points annualized of total average loans and leases outstanding and comprised of gross charge-offs of $5.3 million partially offset by gross recoveries of $1.5 million. Compared to the linked quarter, net loan and lease charge-offs increased by $0.4 million or 1 basis point annualized on total average loans and leases outstanding. Compared to the same period last year, net loan and lease charge-offs increased by $1.8 million or 5 basis points annualized on total average loans and leases outstanding.

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The allowance for credit losses on loans and leases was $147.3 million at September 30, 2024, a decrease of $0.1 million from June 30, 2024 and an increase of $2.1 million from September 30, 2023. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.06% at the end of the quarter, down 1 basis point from the linked quarter and up 2 basis points from the same period last year.

 

 

Balance Sheet

 

Total assets were $23.8 billion at September 30, 2024, an increase of 2.1% from June 30, 2024 and an increase of 1.1% from September 30, 2023. The increase from the prior periods was primarily due to an increase in federal funds sold.

 

The investment securities portfolio was $7.3 billion at September 30, 2024, an increase of 2.1% from June 30, 2024 and a decrease of 2.9% from September 30, 2023. This linked quarter increase was primarily due to the purchases of $236.1 million of floating rate investment securities partially offset by cashflows from the portfolio. The decrease from the same period last year was primarily due to the sale of $159.1 million of investment securities in the third quarter of 2023 and cashflows from the portfolio, partially offset by the above-mentioned purchase of investment securities in the third quarter of 2024. 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 $13.9 billion at September 30, 2024, an increase of 0.6% from June 30, 2024 and flat from September 30, 2023. Total commercial loans were $5.9 billion at September 30, 2024, an increase of 2.0% from June 30, 2024 and an increase of 4.4% from September 30, 2023. The increase from the linked quarter was primarily due to an increase in commercial mortgage portfolio. The increase from the same period last year was primarily due to increases in commercial mortgage, construction and commercial and industrial portfolios. Total consumer loans were $8.0 billion at September 30, 2024, a decrease of 0.3% from the linked quarter and a decrease of 3.1% from the same period last year. The decrease from the linked quarter was primarily due to decreases in our home equity and automobile portfolios, partially offset by an increase in residential mortgage portfolio. The decrease from the same period last year was primarily due to decreases in our residential mortgage, home equity and automobile portfolios.

 

Total deposits were $21.0 billion at September 30, 2024, an increase of 2.8% from June 30, 2024 and an increase of 0.8% from September 30, 2023. Noninterest-bearing deposits made up 25.8% of total deposit balances at September 30, 2024, down from 26.3% at June 30, 2024 and down from 27.3% at September 30, 2023. Average total deposits were $20.5 billion for the third quarter of 2024, up 0.6% from $20.4 billion in the linked quarter and flat from the same period last year. Insured and uninsured but collateralized deposits represented 58% of total deposit balances at September 30, 2024, down from 59% at June 30, 2024 and flat from September 30, 2023. At the end of the quarter, our readily available liquidity of $10.6 billion exceeded total uninsured and uncollateralized deposits of $8.8 billion.

 

 

Capital and Dividends

 

The Company’s capital levels increased quarter over quarter and remain well above regulatory well-capitalized minimums.

 

 

 

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The Tier 1 Capital Ratio was 14.05% at September 30, 2024 compared with 13.96% at June 30, 2024 and 12.53% at September 30, 2023. The Tier 1 Leverage Ratio was 8.38% at September 30, 2024, up 1 basis point from 8.37% at June 30, 2024 and up 116 basis points from 7.22% at September 30, 2023. The increases from the linked quarter were due to retained earnings growth and partially offset by increases in risk-weighted assets and average total assets. The increases from the same period last year were primarily due to the issuance of $165.0 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, at a rate of 8.00% in the second quarter of 2024.

 

No shares of common stock were repurchased under the share repurchase program in the third quarter of 2024. Total remaining buyback authority under the share repurchase program was $126.0 million at September 30, 2024.

 

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 13, 2024 to shareholders of record at the close of business on November 29, 2024.

 

On October 4, 2024, the Company announced that the Board of Directors declared a quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, and a quarterly dividend payment of $20.00 per share, equivalent to $0.5000 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B. The depositary shares representing the Series A Preferred Stock and Series B Preferred Stock are traded on the NYSE under the symbol “BOH.PRA” and “BOH.PRB”, respectively. The dividends on the Series A Preferred Stock and Series B Preferred Stock will be payable on November 1, 2024 to shareholders of record of the preferred stock as of the close of business on October 17, 2024.

 

 

Conference Call Information

 

The Company will review its second quarter financial results today at 8:00 a.m. Hawai‘i 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: https://register.vevent.com/register/BIe5723fafb08d499d83a299d646fa683d. A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawai‘i Time on Monday, October 28, 2024. The replay will be available on the Company's website, www.boh.com.

 

 

Investor Announcements

 

Investors and others should note that the Company intends to announce financial and other information to the Company’s investors using the Company’s investor relations website at https://ir.boh.com, social media channels, press releases, SEC filings and public conference calls and webcasts, all for purposes of complying with the Company’s disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, as information is updated, and new information is posted.

 

 

 

 

 

 

 

 

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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" (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, 2023 and its Form 10-Q for fiscal quarters ended March 31, 2024 and June 30, 2024, 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 Hawai‘i 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 website, www.boh.com. Bank of Hawai‘i Corporation is a trade name of Bank of Hawaii Corporation.

# # # #

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Bank of Hawai‘i 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)	2024				2024				2023				2024				2023
For the Period:
Operating Results
Net Interest Income	$	117,618			$	114,846			$	120,937			$	346,402			$	381,240
Provision for Credit Losses		3,000				2,400				2,000				7,400				6,500
Total Noninterest Income		45,110				42,087				50,334				129,482				134,326
Total Noninterest Expense		107,092				109,226				105,601				322,177				321,556
Pre-Provision Net Revenue		55,636				47,707				65,670				153,707				194,010
Net Income		40,358				34,083				47,903				110,832				140,806
Net Income Available to Common Shareholders 1		36,922				32,114				45,934				103,458				134,899
Basic Earnings Per Common Share		0.94				0.81				1.17				2.62				3.44
Diluted Earnings Per Common Share		0.93				0.81				1.17				2.61				3.42
Dividends Declared Per Common Share		0.70				0.70				0.70				2.10				2.10
Performance Ratios
Return on Average Assets		0.69		%		0.59		%		0.78		%		0.64		%		0.78		%
Return on Average Shareholders' Equity		9.90				9.53				13.92				9.92				13.91
Return on Average Common Equity		11.50				10.41				15.38				11.04				15.37
Efficiency Ratio 2		65.81				69.60				61.66				67.70				62.37
Net Interest Margin 3		2.18				2.15				2.13				2.15				2.27
Dividend Payout Ratio 4		74.47				86.42				59.83				80.15				61.05
Average Shareholders' Equity to Average Assets		6.95				6.22				5.60				6.42				5.61
Average Balances
Average Loans and Leases	$	13,809,977			$	13,831,797			$	13,903,214			$	13,836,760			$	13,833,164
Average Assets		23,338,529				23,145,107				24,387,421				23,255,372				24,124,360
Average Deposits		20,484,391				20,358,393				20,492,082				20,462,222				20,314,079
Average Shareholders' Equity		1,621,936				1,438,476				1,365,143				1,492,645				1,353,815
Per Share of Common Stock
Book Value	$	33.22			$	31.91			$	29.78			$	33.22			$	29.78
Tangible Book Value		32.43				31.12				28.99				32.43				28.99
Market Value
Closing		62.77				57.21				49.69				62.77				49.69
High		70.44				62.53				58.63				73.73				81.73
Low		55.75				54.50				39.02				54.50				30.83
					September 30,				June 30,				December 31,				September 30,
					2024				2024				2023				2023
As of Period End:
Balance Sheet Totals
Loans and Leases					$	13,918,583			$	13,831,266			$	13,965,026			$	13,919,491
Total Assets						23,799,174				23,300,768				23,733,296				23,549,785
Total Deposits						20,978,322				20,408,502				21,055,045				20,802,309
Other Debt						558,297				560,136				560,190				560,217
Total Shareholders' Equity						1,665,474				1,612,849				1,414,242				1,363,840
Asset Quality
Non-Performing Assets					$	19,781			$	15,179			$	11,747			$	11,519
Allowance for Credit Losses - Loans and Leases						147,331				147,477				146,403				145,263
Allowance to Loans and Leases Outstanding 5						1.06		%		1.07		%		1.05		%		1.04		%
Capital Ratios 6
Common Equity Tier 1 Capital Ratio 7						11.66		%		11.56		%		11.33		%		11.29		%
Tier 1 Capital Ratio 7						14.05				13.96				12.56				12.53
Total Capital Ratio 7						15.11				15.02				13.60				13.56
Tier 1 Leverage Ratio						8.38				8.37				7.51				7.22
Total Shareholders' Equity to Total Assets						7.00				6.92				5.96				5.79
Tangible Common Equity to Tangible Assets 8						5.42				5.31				5.07				4.90
Tangible Common Equity to Risk-Weighted Assets 7, 8						9.17				8.80				8.45				8.10
Non-Financial Data
Full-Time Equivalent Employees						1,854				1,910				1,899				1,919
Branches						50				50				51				51
ATMs						317				317				318				320
1  Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
3  Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
4  Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.
5  The numerator comprises the Allowance for Credit Losses - Loans and Leases.
6  Regulatory capital ratios as of September 30, 2024 are preliminary.
7  Regulatory capital ratios for June 30, 2024 have been updated to reflect final reported ratios.
8  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".

 

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Bank of Hawai‘i Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures										Table 2
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands)	2024			2024			2023			2023
Total Shareholders' Equity	$	1,665,474		$	1,612,849		$	1,414,242		$	1,363,840
Less: Preferred Stock		345,000			345,000			180,000			180,000
Goodwill		31,517			31,517			31,517			31,517
Tangible Common Equity	$	1,288,957		$	1,236,332		$	1,202,725		$	1,152,323
Total Assets	$	23,799,174		$	23,300,768		$	23,733,296		$	23,549,785
Less: Goodwill		31,517			31,517			31,517			31,517
Tangible Assets	$	23,767,657		$	23,269,251		$	23,701,779		$	23,518,268
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements 1, 2	$	14,054,698		$	14,051,627		$	14,226,780		$	14,222,825
Total Shareholders' Equity to Total Assets		7.00	%		6.92	%		5.96	%		5.79	%
Tangible Common Equity to Tangible Assets (Non-GAAP)		5.42	%		5.31	%		5.07	%		4.90	%
Tier 1 Capital Ratio 1, 2		14.05	%		13.96	%		12.56	%		12.53	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1, 2		9.17	%		8.80	%		8.45	%		8.10	%
1  Regulatory capital ratios as of September 30, 2024 are preliminary.
2  Regulatory capital ratios for June 30, 2024 have been updated to reflect final reported ratios.

 

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Bank of Hawai‘i 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)	2024			2024			2023				2024			2023
Interest Income
Interest and Fees on Loans and Leases	$	166,286		$	163,208		$	151,245			$	488,830		$	432,287
Income on Investment Securities
Available-for-Sale		23,257			21,468			23,552				66,482			70,746
Held-to-Maturity		21,107			21,595			22,838				64,838			70,161
Deposits		29			25			18				84			63
Funds Sold		8,951			6,114			12,828				21,192			22,589
Other		1,018			1,120			1,464				3,108			4,182
Total Interest Income		220,648			213,530			211,945				644,534			600,028
Interest Expense
Deposits		96,067			91,542			72,153				276,665			163,726
Securities Sold Under Agreements to Repurchase		993			1,180			4,034				3,616			14,847
Funds Purchased		-			44			-				44			888
Short-Term Borrowings		-			-			-				-			5,713
Other Debt		5,970			5,918			14,821				17,807			33,614
Total Interest Expense		103,030			98,684			91,008				298,132			218,788
Net Interest Income		117,618			114,846			120,937				346,402			381,240
Provision for Credit Losses		3,000			2,400			2,000				7,400			6,500
Net Interest Income After Provision for Credit Losses		114,618			112,446			118,937				339,002			374,740
Noninterest Income
Fees, Exchange, and Other Service Charges		14,945			13,769			13,824				42,837			41,782
Trust and Asset Management		11,916			12,223			10,548				35,328			32,453
Service Charges on Deposit Accounts		8,075			7,730			7,843				23,752			23,167
Bank-Owned Life Insurance		3,533			3,396			2,749				10,285			8,467
Annuity and Insurance		1,460			1,583			1,156				4,089			3,465
Mortgage Banking		1,188			1,028			1,059				3,167			3,239
Investment Securities Losses, Net		(1,103	)		(1,601	)		(6,734	)			(4,201	)		(9,836	)
Other		5,096			3,959			19,889				14,225			31,589
Total Noninterest Income		45,110			42,087			50,334				129,482			134,326
Noninterest Expense
Salaries and Benefits		58,626			57,033			58,825				173,874			180,088
Net Occupancy		10,806			10,559			10,327				31,821			30,190
Net Equipment		10,120			10,355			9,477				30,578			30,425
Professional Fees		4,725			4,929			3,846				14,331			12,380
Data Processing		4,712			4,745			4,706				14,227			13,888
FDIC Insurance		3,355			7,170			3,361				14,139			9,768
Other		14,748			14,435			15,059				43,207			44,817
Total Noninterest Expense		107,092			109,226			105,601				322,177			321,556
Income Before Provision for Income Taxes		52,636			45,307			63,670				146,307			187,510
Provision for Income Taxes		12,278			11,224			15,767				35,475			46,704
Net Income	$	40,358		$	34,083		$	47,903			$	110,832		$	140,806
Preferred Stock Dividends		3,436			1,969			1,969				7,375			5,908
Net Income Available to Common Shareholders	$	36,922		$	32,114		$	45,934			$	103,457		$	134,898
Basic Earnings Per Common Share	$	0.94		$	0.81		$	1.17			$	2.62		$	3.44
Diluted Earnings Per Common Share	$	0.93		$	0.81		$	1.17			$	2.61		$	3.42
Dividends Declared Per Common Share	$	0.70		$	0.70		$	0.70			$	2.10		$	2.10
Basic Weighted Average Common Shares		39,488,187			39,450,551			39,274,626				39,429,815			39,264,450
Diluted Weighted Average Common Shares		39,736,492			39,618,705			39,420,531				39,654,705			39,392,433

 

---

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income																			Table 4
		Three Months Ended													Nine Months Ended
		September 30,				June 30,				September 30,					September 30,
(dollars in thousands)		2024				2024				2023					2024				2023
Net Income	$		40,358		$		34,083		$		47,903			$		110,832		$		140,806
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities			38,833				9,052				(18,264	)				60,823				(7,205	)
Defined Benefit Plans			168				168				84					505				252
Other Comprehensive Income (Loss)			39,001				9,220				(18,180	)				61,328				(6,953	)
Comprehensive Income	$		79,359		$		43,303		$		29,723			$		172,160		$		133,853

 

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Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands, except share amounts)	2024			2024			2023			2023
Assets
Interest-Bearing Deposits in Other Banks	$	8,287		$	3,259		$	2,761		$	4,676
Funds Sold		992,854			624,089			690,112			386,086
Investment Securities
Available-for-Sale		2,550,324			2,298,092			2,408,933			2,387,324
Held-to-Maturity (Fair Value of $4,072,596; $4,002,122; $4,253,637; and $4,104,469)		4,710,245			4,812,954			4,997,335			5,088,013
Loans Held for Sale		5,048			2,664			3,124			1,450
Loans and Leases		13,918,583			13,831,266			13,965,026			13,919,491
Allowance for Credit Losses		(147,331	)		(147,477	)		(146,403	)		(145,263	)
Net Loans and Leases		13,771,252			13,683,789			13,818,623			13,774,228
Total Earning Assets		22,038,010			21,424,847			21,920,888			21,641,777
Cash and Due from Banks		271,622			297,990			308,071			261,464
Premises and Equipment, Net		191,899			192,319			194,855			196,094
Operating Lease Right-of-Use Assets		81,736			84,757			86,110			86,896
Accrued Interest Receivable		66,534			67,554			66,525			65,541
Foreclosed Real Estate		2,667			2,672			2,098			1,040
Mortgage Servicing Rights		19,571			19,954			20,880			21,273
Goodwill		31,517			31,517			31,517			31,517
Bank-Owned Life Insurance		475,263			470,708			462,894			458,260
Other Assets		620,355			708,450			639,458			785,923
Total Assets	$	23,799,174		$	23,300,768		$	23,733,296		$	23,549,785
Liabilities
Deposits
Noninterest-Bearing Demand	$	5,412,048		$	5,371,593		$	6,058,554		$	5,687,442
Interest-Bearing Demand		3,734,601			3,928,295			3,749,717			3,925,469
Savings		8,663,147			8,207,902			8,189,472			8,530,384
Time		3,168,526			2,900,712			3,057,302			2,659,014
Total Deposits		20,978,322			20,408,502			21,055,045			20,802,309
Securities Sold Under Agreements to Repurchase		100,490			100,490			150,490			150,490
Other Debt		558,297			560,136			560,190			560,217
Operating Lease Liabilities		90,356			93,364			94,693			95,453
Retirement Benefits Payable		22,870			23,142			23,673			26,074
Accrued Interest Payable		40,434			37,278			41,023			33,434
Taxes Payable		1,722			5,289			7,636			6,965
Other Liabilities		341,209			459,718			386,304			511,003
Total Liabilities		22,133,700			21,687,919			22,319,054			22,185,945
Shareholders' Equity
Preferred Stock (Series A, $.01 par value; authorized 180,000 shares issued and outstanding)		180,000			180,000			180,000			180,000
Preferred Stock (Series B, $.01 par value; authorized 165,000 shares issued and outstanding)		165,000			165,000			-			-
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: September 30, 2024 - 58,765,907 / 39,748,304;
June 30, 2024 - 58,765,907 / 39,729,941; December 31, 2023 - 58,755,465 / 39,753,138;
and September 30, 2023 - 58,767,820 / 39,748,700)		585			585			583			583
Capital Surplus		643,620			639,841			636,422			632,425
Accumulated Other Comprehensive Loss		(335,360	)		(374,361	)		(396,688	)		(441,611	)
Retained Earnings		2,127,585			2,119,140			2,107,569			2,108,702
Treasury Stock, at Cost (Shares: September 30, 2024 - 19,017,603; June 30, 2024 - 19,035,966;
December 31, 2023 - 19,002,327; and September 30, 2023 - 19,019,120)		(1,115,956	)		(1,117,356	)		(1,113,644	)		(1,116,259	)
Total Shareholders' Equity		1,665,474			1,612,849			1,414,242			1,363,840
Total Liabilities and Shareholders' Equity	$	23,799,174		$	23,300,768		$	23,733,296		$	23,549,785

 

 

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Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																																Table 6
																						Accumulated
	Preferred						Preferred															Other
	Shares			Preferred			Shares			Preferred			Common									Comprehensive
	Series A			Series A			Series B			Series B			Shares			Common			Capital			Income				Retained			Treasury
(dollars in thousands, except share amounts)	Outstanding			Stock			Outstanding			Stock			Outstanding			Stock			Surplus			(Loss)				Earnings			Stock			Total
Balance as of December 31, 2023		180,000		$	180,000			-		$	-			39,753,138		$	583		$	636,422		$	(396,688	)		$	2,107,569		$	(1,113,644	)	$	1,414,242
Net Income		-			-			-			-			-			-			-			-				110,832			-			110,832
Other Comprehensive Income		-			-			-			-			-			-			-			61,328				-			-			61,328
Share-Based Compensation		-			-			-			-			-			-			11,051			-				-			-			11,051
Preferred Stock Issued, Net		-			-			165,000			165,000			-			-			(4,386	)		-				-			-			160,614
Common Stock Issued under Purchase and
Equity Compensation Plans		-			-			-			-			78,753			2			533			-				768			2,829			4,132
Common Stock Repurchased		-			-			-			-			(83,587	)		-			-			-				-			(5,141	)		(5,141	)
Cash Dividends Declared Common Stock ($2.10 per share)		-			-			-			-			-			-			-			-				(84,209	)		-			(84,209	)
Cash Dividends Declared Preferred Stock		-			-			-			-			-			-			-			-				(7,375	)		-			(7,375	)
Balance as of September 30, 2024		180,000		$	180,000			165,000		$	165,000			39,748,304		$	585		$	643,620		$	(335,360	)		$	2,127,585		$	(1,115,956	)	$	1,665,474
Balance as of December 31, 2022		180,000		$	180,000			-		$	-			39,835,750		$	582		$	620,578		$	(434,658	)		$	2,055,912		$	(1,105,419	)	$	1,316,995
Net Income		-			-			-			-			-			-			-			-				140,806			-			140,806
Other Comprehensive Loss		-			-			-			-			-			-			-			(6,953	)			-			-			(6,953	)
Share-Based Compensation		-			-			-			-			-			-			11,979			-				-			-			11,979
Common Stock Issued under Purchase and
Equity Compensation Plans		-			-			-			-			121,040			1			(132	)		-				1,716			3,216			4,801
Common Stock Repurchased		-			-			-			-			(208,090	)		-			-			-				-			(14,056	)		(14,056	)
Cash Dividends Declared Common Stock ($2.10 per share)		-			-			-			-			-			-			-			-				(83,824	)		-			(83,824	)
Cash Dividends Declared Preferred Stock		-			-			-			-			-			-			-			-				(5,908	)		-			(5,908	)
Balance as of September 30, 2023		180,000		$	180,000			-		$	-			39,748,700		$	583		$	632,425		$	(441,611	)		$	2,108,702		$	(1,116,259	)	$	1,363,840

 

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Bank of Hawai‘i 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, 2024										June 30, 2024										September 30, 2023
	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	$	4.0		$	0.0			2.89		%	$	4.3		$	0.0			2.40		%	$	2.9		$	0.0			2.40		%
Funds Sold		663.8			9.0			5.28				455.8			6.1			5.31				944.8			12.8			5.31
Investment Securities
Available-for-Sale
Taxable		2,430.0			23.0			3.80				2,308.3			21.5			3.73				2,605.4			23.5			3.60
Non-Taxable		11.8			0.2			6.63				1.6			0.0			2.01				3.5			0.0			3.21
Held-to-Maturity
Taxable		4,735.5			21.0			1.77				4,837.2			21.4			1.77				5,118.6			22.7			1.77
Non-Taxable		34.4			0.2			2.10				34.6			0.2			2.10				35.0			0.2			2.10
Total Investment Securities		7,211.7			44.4			2.46				7,181.7			43.1			2.40				7,762.5			46.4			2.39
Loans Held for Sale		3.8			0.1			6.13				1.4			0.0			6.30				3.8			0.1			6.28
Loans and Leases 3
Commercial and Industrial		1,658.1			22.6			5.43				1,683.2			22.3			5.34				1,515.0			18.9			4.96
Paycheck Protection Program		7.2			0.0			1.42				9.5			0.1			2.24				13.1			0.0			1.32
Commercial Mortgage		3,744.6			52.0			5.51				3,723.6			51.6			5.57				3,792.6			51.1			5.35
Construction		357.3			7.1			7.95				321.3			6.3			7.85				241.9			3.7			6.09
Commercial Lease Financing		59.6			0.4			2.58				59.3			0.3			2.28				62.6			0.3			1.84
Residential Mortgage		4,593.7			46.4			4.03				4,595.2			45.6			3.97				4,715.3			42.8			3.62
Home Equity		2,206.9			22.4			4.04				2,231.7			21.8			3.92				2,283.5			20.1			3.49
Automobile		795.7			9.4			4.72				813.5			9.1			4.52				868.0			8.2			3.75
Other 4		386.9			6.9			7.13				394.5			6.8			6.95				411.2			6.5			6.24
Total Loans and Leases		13,810.0			167.2			4.82				13,831.8			163.9			4.76				13,903.2			151.6			4.34
Other		63.2			0.9			6.43				62.5			1.2			7.18				91.6			1.5			6.40
Total Earning Assets		21,756.5			221.7			4.06				21,537.5			214.3			3.99				22,708.8			212.4			3.72
Cash and Due from Banks		258.8										233.4										289.8
Other Assets		1,323.2										1,374.2										1,388.8
Total Assets	$	23,338.5									$	23,145.1									$	24,387.4
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	3,775.6			8.9			0.94			$	3,788.5			8.8			0.94			$	3,929.7			6.6			0.67
Savings		8,402.9			55.7			2.63				8,259.2			52.0			2.53				7,952.6			39.1			1.95
Time		3,008.7			31.5			4.17				2,935.9			30.7			4.20				2,767.8			26.5			3.79
Total Interest-Bearing Deposits		15,187.2			96.1			2.52				14,983.6			91.5			2.46				14,650.1			72.2			1.95
Funds Purchased		0.0			0.0			5.40				3.2			0.0			5.37				-			-			-
Short-Term Borrowings		0.0			0.0			5.40				0.0			0.0			5.40				-			-			-
Securities Sold Under Agreements to Repurchase		100.5			1.0			3.87				121.9			1.2			3.83				528.5			4.0			2.99
Other Debt		560.1			5.9			4.24				560.2			6.0			4.25				1,365.7			14.8			4.31
Total Interest-Bearing Liabilities		15,847.8			103.0			2.59				15,668.9			98.7			2.53				16,544.3			91.0			2.18
Net Interest Income				$	118.7									$	115.6									$	121.4
Interest Rate Spread								1.47		%								1.46		%								1.54		%
Net Interest Margin								2.18		%								2.15		%								2.13		%
Noninterest-Bearing Demand Deposits		5,297.2										5,374.8										5,842.0
Other Liabilities		571.6										662.9										636.0
Shareholders' Equity		1,621.9										1,438.5										1,365.1
Total Liabilities and Shareholders' Equity	$	23,338.5									$	23,145.1									$	24,387.4
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 $1.0 million, $774 thousand, and $437 thousand
for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, 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.

 

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Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1														Table 7b
	Nine Months Ended										Nine Months Ended
	September 30, 2024										September 30, 2023
	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	$	4.3		$	0.1			2.59		%	$	3.2		$	0.1			2.60		%
Funds Sold		525.7			21.2			5.30				582.7			22.6			5.11
Investment Securities
Available-for-Sale
Taxable		2,373.1			66.4			3.73				2,721.5			70.6			3.46
Non-Taxable		5.0			0.2			5.59				7.6			0.2			4.22
Held-to-Maturity
Taxable		4,832.9			64.4			1.78				5,227.8			69.7			1.78
Non-Taxable		34.6			0.5			2.10				35.2			0.6			2.10
Total Investment Securities		7,245.6			131.5			2.42				7,992.1			141.1			2.36
Loans Held for Sale		2.5			0.1			6.16				2.7			0.1			5.82
Loans and Leases 3
Commercial and Industrial		1,664.5			67.0			5.38				1,461.2			52.7			4.82
Paycheck Protection Program		9.1			0.1			1.70				14.8			0.2			1.70
Commercial Mortgage		3,728.3			153.9			5.52				3,781.7			145.6			5.15
Construction		329.0			19.0			7.71				256.2			11.1			5.81
Commercial Lease Financing		59.1			1.0			2.25				64.9			0.5			1.11
Residential Mortgage		4,613.0			137.0			3.96				4,695.4			123.8			3.51
Home Equity		2,229.5			65.3			3.91				2,265.2			57.3			3.38
Automobile		813.3			27.5			4.51				873.0			23.2			3.55
Other 4		391.0			20.2			6.91				420.8			19.0			6.04
Total Loans and Leases		13,836.8			491.0			4.74				13,833.2			433.4			4.19
Other		62.6			3.1			6.61				84.6			4.1			6.59
Total Earning Assets		21,677.5			647.0			3.98				22,498.5			601.4			3.57
Cash and Due from Banks		244.4										308.4
Other Assets		1,333.5										1,317.5
Total Assets	$	23,255.4									$	24,124.4
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	3,776.1			25.4			0.90			$	4,060.0			19.3			0.64
Savings		8,264.9			157.1			2.54				7,876.1			86.3			1.46
Time		3,008.6			94.2			4.18				2,288.2			58.1			3.40
Total Interest-Bearing Deposits		15,049.6			276.7			2.46				14,224.3			163.7			1.54
Funds Purchased		1.1			0.0			5.37				24.8			0.9			4.72
Short-Term Borrowings		0.0			0.0			5.40				152.4			5.7			4.94
Securities Sold Under Agreements to Repurchase		124.2			3.6			3.82				659.1			14.8			2.97
Other Debt		560.2			17.8			4.25				1,043.6			33.7			4.31
Total Interest-Bearing Liabilities		15,735.1			298.1			2.53				16,104.2			218.8			1.81
Net Interest Income				$	348.8									$	382.6
Interest Rate Spread								1.45		%								1.76		%
Net Interest Margin								2.15		%								2.27		%
Noninterest-Bearing Demand Deposits		5,412.6										6,089.8
Other Liabilities		615.1										576.6
Shareholders' Equity		1,492.6										1,353.8
Total Liabilities and Shareholders' Equity	$	23,255.4									$	24,124.4
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 $2.5 million and $1.4 million
for the nine months ended September 30, 2024 and September 30, 2023, 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.

 

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Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended September 30, 2024
	Compared to June 30, 2024
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	(0.0	)	$	0.0		$	0.0
Funds Sold		3.0			(0.0	)		2.9
Investment Securities
Available-for-Sale
Taxable		1.2			0.3			1.5
Non-Taxable		0.1			0.1			0.2
Held-to-Maturity
Taxable		(0.4	)		0.1			(0.4	)
Non-Taxable		(0.0	)		(0.0	)		(0.0	)
Total Investment Securities		0.9			0.4			1.3
Loans Held for Sale		0.0			(0.0	)		0.0
Loans and Leases
Commercial and Industrial		(0.2	)		0.5			0.3
Paycheck Protection Program		(0.1	)		(0.0	)		(0.1	)
Commercial Mortgage		0.5			(0.1	)		0.4
Construction		0.8			(0.0	)		0.8
Commercial Lease Financing		0.1			0.0			0.1
Residential Mortgage		(0.0	)		0.8			0.8
Home Equity		(0.2	)		0.8			0.6
Automobile		(0.2	)		0.5			0.3
Other 2		(0.1	)		0.2			0.1
Total Loans and Leases		0.6			2.8			3.3
Other		(0.0	)		(0.3	)		(0.3	)
Total Change in Interest Income		4.5			2.9			7.4
Change in Interest Expense:
Interest-Bearing Deposits
Demand		0.1			0.0			0.1
Savings		1.1			2.6			3.7
Time		1.0			(0.2	)		0.9
Total Interest-Bearing Deposits		2.2			2.4			4.6
Funds Purchased		(0.0	)		0.0			(0.0	)
Short-Term Borrowings		(0.0	)		-			(0.0	)
Securities Sold Under Agreements to Repurchase		(0.2	)		0.0			(0.2	)
Other Debt		0.0			(0.1	)		(0.0	)
Total Change in Interest Expense		1.9			2.4			4.3
Change in Net Interest Income	$	2.5		$	0.5		$	3.0
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.

 

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Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8b
	Three Months Ended September 30, 2024
	Compared to September 30, 2023
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	0.0		$	0.0		$	0.0
Funds Sold		(3.8	)		0.0			(3.8	)
Investment Securities
Available-for-Sale
Taxable		(1.7	)		1.2			(0.5	)
Non-Taxable		0.1			0.1			0.2
Held-to-Maturity
Taxable		(1.7	)		(0.0	)		(1.7	)
Non-Taxable		(0.0	)		(0.0	)		(0.0	)
Total Investment Securities		(3.3	)		1.3			(2.0	)
Loans Held for Sale		0.0			(0.0	)		(0.0	)
Loans and Leases
Commercial and Industrial		1.8			1.9			3.7
Paycheck Protection Program		(0.0	)		0.0			(0.0	)
Commercial Mortgage		(0.6	)		1.5			0.9
Construction		2.1			1.3			3.4
Commercial Lease Financing		0.0			0.1			0.1
Residential Mortgage		(1.1	)		4.7			3.6
Home Equity		(0.7	)		3.0			2.3
Automobile		(0.7	)		1.9			1.2
Other 2		(0.5	)		0.9			0.4
Total Loans and Leases		0.3			15.3			15.6
Other		(0.5	)		0.0			(0.5	)
Total Change in Interest Income		(7.3	)		16.6			9.3
Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.3	)		2.6			2.3
Savings		2.3			14.3			16.6
Time		2.4			2.6			5.0
Total Interest-Bearing Deposits		4.4			19.5			23.9
Securities Sold Under Agreements to Repurchase		(4.0	)		1.0			(3.0	)
Other Debt		(8.7	)		(0.2	)		(8.9	)
Total Change in Interest Expense		(8.3	)		20.3			12.0
Change in Net Interest Income	$	1.0		$	(3.7	)	$	(2.7	)
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.

 

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Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8c
	Nine Months Ended September 30, 2024
	Compared to September 30, 2023
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	0.0		$	(0.0	)	$	0.0
Funds Sold		(2.2	)		0.8			(1.4	)
Investment Securities
Available-for-Sale
Taxable		(9.4	)		5.2			(4.2	)
Non-Taxable		(0.1	)		0.1			-
Held-to-Maturity
Taxable		(5.2	)		(0.1	)		(5.3	)
Non-Taxable		(0.0	)		(0.1	)		(0.1	)
Total Investment Securities		(14.7	)		5.1			(9.6	)
Loans Held for Sale		(0.0	)		0.0			-
Loans and Leases
Commercial and Industrial		7.8			6.5			14.3
Paycheck Protection Program		(0.1	)		(0.0	)		(0.1	)
Commercial Mortgage		(2.1	)		10.4			8.3
Construction		3.6			4.3			7.9
Commercial Lease Financing		(0.0	)		0.5			0.5
Residential Mortgage		(2.2	)		15.4			13.2
Home Equity		(0.9	)		8.9			8.0
Automobile		(1.6	)		5.9			4.3
Other 2		(1.4	)		2.6			1.2
Total Loans and Leases		3.1			54.5			57.6
Other		(1.1	)		0.1			(1.0	)
Total Change in Interest Income		(14.9	)		60.5			45.6
Change in Interest Expense:
Interest-Bearing Deposits
Demand		(1.4	)		7.5			6.1
Savings		4.5			66.3			70.8
Time		20.8			15.3			36.1
Total Interest-Bearing Deposits		23.9			89.1			113.0
Funds Purchased		(1.0	)		0.1			(0.9	)
Short-Term Borrowings		(6.2	)		0.5			(5.7	)
Securities Sold Under Agreements to Repurchase		(14.6	)		3.4			(11.2	)
Other Debt		(15.4	)		(0.5	)		(15.9	)
Total Change in Interest Expense		(13.3	)		92.6			79.3
Change in Net Interest Income	$	(1.6	)	$	(32.1	)	$	(33.7	)
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.

 

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Bank of Hawai‘i 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)		2024				2024				2023					2024				2023
Salaries	$		38,993		$		38,662		$		39,426			$		115,686		$		116,005
Incentive Compensation			5,086				3,109				2,956					11,285				9,937
Retirement and Other Benefits			3,692				3,961				3,809					11,952				13,186
Medical, Dental, and Life Insurance			3,512				3,211				2,835					9,935				10,267
Share-Based Compensation			3,364				3,296				4,072					10,459				11,327
Payroll Taxes			2,839				3,070				2,921					10,639				12,079
Commission Expense			979				939				676					2,490				2,098
Separation Expense			161				785				2,130					1,428				5,189
Total Salaries and Benefits	$		58,626		$		57,033		$		58,825			$		173,874		$		180,088

 

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Bank of Hawai‘i Corporation and Subsidiaries
Loan and Lease Portfolio Balances													Table 10
	September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)	2024			2024			2024			2023			2023
Commercial
Commercial Mortgage	$	3,868,566		$	3,741,140		$	3,715,032		$	3,749,016		$	3,784,339
Commercial and Industrial		1,675,347			1,691,441			1,669,482			1,652,699			1,569,572
Construction		319,150			315,571			323,069			304,463			251,507
Lease Financing		60,665			59,388			57,817			59,939			61,522
Paycheck Protection Program		6,346			7,997			10,177			11,369			12,529
Total Commercial		5,930,074			5,815,537			5,775,577			5,777,486			5,679,469
Consumer
Residential Mortgage		4,622,677			4,595,586			4,616,900			4,684,171			4,699,140
Home Equity		2,195,844			2,221,073			2,240,946			2,264,827			2,285,974
Automobile		786,910			806,240			825,854			837,830			856,113
Other 1		383,078			392,830			394,560			400,712			398,795
Total Consumer		7,988,509			8,015,729			8,078,260			8,187,540			8,240,022
Total Loans and Leases	$	13,918,583		$	13,831,266		$	13,853,837		$	13,965,026		$	13,919,491
1  Comprised of other revolving credit, installment, and lease financing.
Deposits
	September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)	2024			2024			2024			2023			2023
Consumer	$	10,340,466		$	10,382,432		$	10,429,004		$	10,319,809		$	10,036,261
Commercial		8,356,239			7,995,618			8,323,330			8,601,224			8,564,536
Public and Other		2,281,617			2,030,452			1,924,252			2,134,012			2,201,512
Total Deposits	$	20,978,322		$	20,408,502		$	20,676,586		$	21,055,045		$	20,802,309
Average Deposits
	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)	2024			2024			2024			2023			2023
Consumer	$	10,345,772		$	10,379,724		$	10,313,730		$	10,092,727		$	9,963,690
Commercial		8,207,310			8,188,685			8,334,540			8,581,426			8,288,891
Public and Other		1,931,309			1,789,984			1,895,370			2,029,917			2,239,501
Total Deposits	$	20,484,391		$	20,358,393		$	20,543,640		$	20,704,070		$	20,492,082

 

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Bank of Hawai‘i 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)	2024			2024			2024			2023			2023
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial	$	6,218		$	3,681		$	13		$	39		$	43
Commercial Mortgage		2,680			2,601			2,714			2,884			2,996
Total Commercial		8,898			6,282			2,727			2,923			3,039
Consumer
Residential Mortgage		4,269			2,998			3,199			2,935			3,706
Home Equity		3,947			3,227			3,240			3,791			3,734
Total Consumer		8,216			6,225			6,439			6,726			7,440
Total Non-Accrual Loans and Leases		17,114			12,507			9,166			9,649			10,479
Foreclosed Real Estate		2,667			2,672			2,672			2,098			1,040
Total Non-Performing Assets	$	19,781		$	15,179		$	11,838		$	11,747		$	11,519
Accruing Loans and Leases Past Due 90 Days or More
Consumer
Residential Mortgage	$	4,421		$	4,524		$	3,378		$	3,814		$	3,519
Home Equity		1,980			2,025			1,580			1,734			2,172
Automobile		580			568			517			399			393
Other 1		554			733			872			648			643
Total Consumer		7,535			7,850			6,347			6,595			6,727
Total Accruing Loans and Leases Past Due 90 Days or More	$	7,535		$	7,850		$	6,347		$	6,595		$	6,727
Total Loans and Leases	$	13,918,583		$	13,831,266		$	13,853,837		$	13,965,026		$	13,919,491
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases		0.12	%		0.09	%		0.07	%		0.07	%		0.08	%
Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate		0.14	%		0.11	%		0.09	%		0.08	%		0.08	%
Ratio of Non-Performing Assets to Total Assets		0.08	%		0.07	%		0.05	%		0.05	%		0.05	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans
and Leases and Commercial Foreclosed Real Estate		0.15	%		0.11	%		0.05	%		0.05	%		0.05	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate		0.14	%		0.11	%		0.11	%		0.11	%		0.10	%
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		0.20	%		0.17	%		0.13	%		0.13	%		0.13	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter	$	15,179		$	11,838		$	11,747		$	11,519		$	11,477
Additions		5,557			5,257			1,652			2,683			1,318
Reductions
Payments		(734	)		(844	)		(921	)		(2,018	)		(1,017	)
Return to Accrual Status		(81	)		(1,018	)		(617	)		(437	)		(259	)
Charge-offs / Write-downs		(140	)		(54	)		(23	)		-			-
Total Reductions		(955	)		(1,916	)		(1,561	)		(2,455	)		(1,276	)
Balance at End of Quarter	$	19,781		$	15,179		$	11,838		$	11,747		$	11,519
1  Comprised of other revolving credit, installment, and lease financing.

 

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Bank of Hawai‘i Corporation and Subsidiaries
Reserve for Credit Losses														Table 12
	Three Months Ended										Nine Months Ended
	September 30,			June 30,			September 30,				September 30,
(dollars in thousands)	2024			2024			2023				2024			2023
Balance at Beginning of Period	$	151,155		$	152,148		$	151,702			$	152,429		$	151,247
Loans and Leases Charged-Off
Commercial
Commercial and Industrial		(1,021	)		(875	)		(294	)			(2,256	)		(758	)
Consumer
Residential Mortgage		-			(48	)		-				(48	)		(6	)
Home Equity		(125	)		(202	)		(13	)			(362	)		(68	)
Automobile		(1,651	)		(1,095	)		(1,353	)			(3,794	)		(4,309	)
Other 1		(2,539	)		(2,610	)		(1,957	)			(7,461	)		(6,296	)
Total Loans and Leases Charged-Off		(5,336	)		(4,830	)		(3,617	)			(13,921	)		(11,437	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial		66			263			72				445			225
Consumer
Residential Mortgage		48			63			69				153			188
Home Equity		318			113			131				615			893
Automobile		552			481			721				1,559			2,170
Other 1		522			517			575				1,645			1,867
Total Recoveries on Loans and Leases Previously Charged-Off		1,506			1,437			1,568				4,417			5,343
Net Charged-Off - Loans and Leases		(3,830	)		(3,393	)		(2,049	)			(9,504	)		(6,094	)
Provision for Credit Losses:
Loans and Leases		3,684			3,206			1,945				10,432			6,918
Unfunded Commitments		(684	)		(806	)		55				(3,032	)		(418	)
Total Provision for Credit Losses		3,000			2,400			2,000				7,400			6,500
Balance at End of Period	$	150,325		$	151,155		$	151,653			$	150,325		$	151,653
Components
Allowance for Credit Losses - Loans and Leases	$	147,331		$	147,477		$	145,263			$	147,331		$	145,263
Reserve for Unfunded Commitments		2,994			3,678			6,390				2,994			6,390
Total Reserve for Credit Losses	$	150,325		$	151,155		$	151,653			$	150,325		$	151,653
Average Loans and Leases Outstanding	$	13,809,977		$	13,831,797		$	13,903,214			$	13,836,760		$	13,833,164
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)		0.11	%		0.10	%		0.06	%			0.09	%		0.06	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 2		1.06	%		1.07	%		1.04	%			1.06	%		1.04	%
1  Comprised of other revolving credit, installment, and lease financing.
2  The numerator comprises the Allowance for Credit Losses - Loans and Leases.

 

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Bank of Hawai‘i Corporation and Subsidiaries
Business Segments Selected Financial Information										Table 13a
	Consumer			Commercial			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			and Other			Total
Three Months Ended September 30, 2024
Net Interest Income (Expense)	$	97,919		$	50,556		$	(30,857	)	$	117,618
Provision for Credit Losses		3,058			772			(830	)		3,000
Net Interest Income (Expense) After Provision for Credit Losses		94,861			49,784			(30,027	)		114,618
Noninterest Income		34,133			7,786			3,191			45,110
Noninterest Expense		(84,712	)		(18,825	)		(3,555	)		(107,092	)
Income (Loss) Before Income Taxes		44,282			38,745			(30,391	)		52,636
Provision for Income Taxes		(11,289	)		(9,816	)		8,827			(12,278	)
Net Income (Loss)	$	32,993		$	28,929		$	(21,564	)	$	40,358
Total Assets as of September 30, 2024	$	8,308,389		$	5,952,321		$	9,538,464		$	23,799,174
Three Months September 30, 2023 1
Net Interest Income (Expense)	$	98,984		$	52,066		$	(30,113	)	$	120,937
Provision for Credit Losses		1,974			74			(48	)		2,000
Net Interest Income (Expense) After Provision for Credit Losses		97,010			51,992			(30,065	)		118,937
Noninterest Income		31,027			8,483			10,824			50,334
Noninterest Expense		(81,377	)		(18,937	)		(5,287	)		(105,601	)
Income (Loss) Before Income Taxes		46,660			41,538			(24,528	)		63,670
Provision for Income Taxes		(12,073	)		(10,523	)		6,829			(15,767	)
Net Income (Loss)	$	34,587		$	31,015		$	(17,699	)	$	47,903
Total Assets as of September 30, 2023	$	8,584,796		$	5,719,577		$	9,245,412		$	23,549,785
1 Certain prior period information has been reclassified to conform to current presentation.

 

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Bank of Hawai‘i Corporation and Subsidiaries
Business Segments Selected Financial Information										Table 13b
	Consumer			Commercial			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			and Other			Total
Nine Months Ended September 30, 2024
Net Interest Income (Expense)	$	293,118		$	152,934		$	(99,650	)	$	346,402
Provision for Credit Losses		8,218			1,239			(2,057	)		7,400
Net Interest Income (Expense) After Provision for Credit Losses		284,900			151,695			(97,593	)		339,002
Noninterest Income		99,768			21,278			8,436			129,482
Noninterest Expense		(254,428	)		(55,478	)		(12,271	)		(322,177	)
Income (Loss) Before Income Taxes		130,240			117,495			(101,428	)		146,307
Provision for Income Taxes		(33,154	)		(29,711	)		27,390			(35,475	)
Net Income (Loss)	$	97,086		$	87,784		$	(74,038	)	$	110,832
Total Assets as of September 30, 2024	$	8,308,389		$	5,952,321		$	9,538,464		$	23,799,174
Nine Months Ended September 30, 2023 1
Net Interest Income (Expense)	$	293,681		$	159,864		$	(72,305	)	$	381,240
Provision for Credit Losses		6,035			59			406			6,500
Net Interest Income (Expense) After Provision for Credit Losses		287,646			159,805			(72,711	)		374,740
Noninterest Income		94,126			25,072			15,128			134,326
Noninterest Expense		(247,543	)		(58,528	)		(15,485	)		(321,556	)
Income (Loss) Before Income Taxes		134,229			126,349			(73,068	)		187,510
Provision for Income Taxes		(34,566	)		(31,345	)		19,207			(46,704	)
Net Income (Loss)	$	99,663		$	95,004		$	(53,861	)	$	140,806
Total Assets as of September 30, 2023	$	8,584,796		$	5,719,577		$	9,245,412		$	23,549,785
1 Certain prior period information has been reclassified to conform to current presentation.

 

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Bank of Hawai‘i Corporation and Subsidiaries
Selected Quarterly Financial Data																	Table 14
	Three Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,
(dollars in thousands, except per share amounts)	2024				2024				2024				2023				2023
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	166,286			$	163,208			$	159,336			$	158,324			$	151,245
Income on Investment Securities
Available-for-Sale		23,257				21,468				21,757				22,782				23,552
Held-to-Maturity		21,107				21,595				22,136				22,589				22,838
Deposits		29				25				30				23				18
Funds Sold		8,951				6,114				6,127				5,705				12,828
Other		1,018				1,120				970				924				1,464
Total Interest Income		220,648				213,530				210,356				210,347				211,945
Interest Expense
Deposits		96,067				91,542				89,056				87,121				72,153
Securities Sold Under Agreements to Repurchase		993				1,180				1,443				1,459				4,034
Funds Purchased		-				44				-				-				-
Other Debt		5,970				5,918				5,919				5,982				14,821
Total Interest Expense		103,030				98,684				96,418				94,562				91,008
Net Interest Income		117,618				114,846				113,938				115,785				120,937
Provision for Credit Losses		3,000				2,400				2,000				2,500				2,000
Net Interest Income After Provision for Credit Losses		114,618				112,446				111,938				113,285				118,937
Noninterest Income
Fees, Exchange, and Other Service Charges		14,945				13,769				14,123				13,774				13,824
Trust and Asset Management		11,916				12,223				11,189				11,144				10,548
Service Charges on Deposit Accounts		8,075				7,730				7,947				7,949				7,843
Bank-Owned Life Insurance		3,533				3,396				3,356				3,176				2,749
Annuity and Insurance		1,460				1,583				1,046				1,271				1,156
Mortgage Banking		1,188				1,028				951				1,016				1,059
Investment Securities Losses, Net		(1,103	)			(1,601	)			(1,497	)			(1,619	)			(6,734	)
Other		5,096				3,959				5,170				5,572				19,889
Total Noninterest Income		45,110				42,087				42,285				42,283				50,334
Noninterest Expense
Salaries and Benefits		58,626				57,033				58,215				53,991				58,825
Net Occupancy		10,806				10,559				10,456				9,734				10,327
Net Equipment		10,120				10,355				10,103				9,826				9,477
Professional Fees		4,725				4,929				4,677				5,079				3,846
Data Processing		4,712				4,745				4,770				4,948				4,706
FDIC Insurance		3,355				7,170				3,614				18,545				3,361
Other		14,748				14,435				14,024				13,839				15,059
Total Noninterest Expense		107,092				109,226				105,859				115,962				105,601
Income Before Provision for Income Taxes		52,636				45,307				48,364				39,606				63,670
Provision for Income Taxes		12,278				11,224				11,973				9,210				15,767
Net Income	$	40,358			$	34,083			$	36,391			$	30,396			$	47,903
Preferred Stock Dividends		3,436				1,969				1,969				1,969				1,969
Net Income Available to Common Shareholders	$	36,922			$	32,114			$	34,422			$	28,427			$	45,934
Basic Earnings Per Common Share	$	0.94			$	0.81			$	0.87			$	0.72			$	1.17
Diluted Earnings Per Common Share	$	0.93			$	0.81			$	0.87			$	0.72			$	1.17
Balance Sheet Totals
Loans and Leases	$	13,918,583			$	13,831,266			$	13,853,837			$	13,965,026			$	13,919,491
Total Assets		23,799,174				23,300,768				23,420,860				23,733,296				23,549,785
Total Deposits		20,978,322				20,408,502				20,676,586				21,055,045				20,802,309
Total Shareholders' Equity		1,665,474				1,612,849				1,435,977				1,414,242				1,363,840
Performance Ratios
Return on Average Assets		0.69		%		0.59		%		0.63		%		0.51		%		0.78		%
Return on Average Shareholders' Equity		9.90				9.53				10.34				8.86				13.92
Return on Average Common Equity		11.50				10.41				11.20				9.55				15.38
Efficiency Ratio 1		65.81				69.60				67.76				73.36				61.66
Net Interest Margin 2		2.18				2.15				2.11				2.13				2.13
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.

 

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Bank of Hawai‘i Corporation and Subsidiaries
Hawaii Economic Trends																				Table 15
	Eight Months Ended							Year Ended
(dollars in millions; jobs in thousands)	August 31, 2024							December 31, 2023								December 31, 2022
Hawaii Economic Trends
State General Fund Revenues 1	$	6,568.2			1.5		%	$	9,504.1				0.7		%	$	9,441.3				16.0		%
General Excise and Use Tax Revenue 1		3,094.1			2.2				4,474.1				4.9				4,263.4				18.3
Jobs 2		651.1							655.2								653.3
												September 30,				December 31,
												2024				2023				2022
Unemployment, seasonally adjusted 2
Statewide													2.9		%		3.0		%		3.2		%
Honolulu County													2.8				2.6				3.1
Hawaii County													3.2				2.8				3.5
Maui County													2.5				6.2				3.5
Kauai County													3.5				2.5				3.1
								September 30,				December 31,
(1-year percentage change, except months of inventory)								2024				2023				2022				2021
Housing Trends (Single Family Oahu) 3
Median Home Price									4.8		%		(5.0	)	%		11.6		%		19.3		%
Home Sales Volume (units)									5.8		%		(26.3	)	%		(23.2	)	%		17.9		%
Months of Inventory									3.4				2.8				2.1				0.8
								Monthly Visitor Arrivals,								Percentage Change
(in thousands, except percent change)								Not Seasonally Adjusted								from Previous Year
Tourism 4
August 31, 2024													819.2								6.9		%
July 31, 2024													925.3								(0.5	)
June 30, 2024													872.6								(1.5	)
May 31, 2024													757.8								(4.1	)
April 30, 2024													721.9								(10.5	)
March 31, 2024													843.5								(5.5	)
February 29, 2024													752.7								2.6
January 31, 2024													745.6								(3.8	)
December 31, 2023													845.6								(1.5	)
November 30, 2023													720.3								0.2
October 31, 2023													700.3								(3.7	)
September 30, 2023													643.1								(7.1	)
August 31, 2023													766.0								(7.7	)
July 31, 2023													929.4								1.2
June 30, 2023													886.0								5.3
May 31, 2023													790.5								2.1
April 30, 2023													806.2								(0.4	)
March 31, 2023													892.2								13.6
February 28, 2023													733.6								17.6
January 31, 2023													775.1								36.7
December 31, 2022													858.3								14.0
November 30, 2022													719.0								17.1
October 31, 2022													727.4								32.1
September 30, 2022													692.2								37.2
August 31, 2022													829.8								14.8
1  Source: Hawaii Department of Business, Economic Development & Tourism
2  Source: U.S. Bureau of Labor Statistics
3  Source: Honolulu Board of Realtors
4  Source: Hawaii Tourism Authority

 

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Bank of Hawai‘i Corporationthird quarter 2024 financial report October 28, 2024 Exhibit 99.2

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this presentation, and other statements made by the Company in connection with it, may contain forward-looking statements concerning, among other things, forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. we have not committed to update forward-looking statements to reflect later events or circumstances disclosure 2 forward-looking statements

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diversified, lower risk loan assets highlights broad & deep market penetration stable balance sheet performance earnings highlights strong credit stable loan and deposit performance tier 1 capital ratio of 14.05% and total capital ratio of 15.11% $10.6 billion in readily available liquidity compared to $8.8 billion in uninsured/uncollateralized deposits $0.93 diluted earnings per common share $40.4 million net income net interest margin expanded to 2.18% 1.87% average cost of total deposits 11.50% return on average common equity 0.11% net charge-off rate 0.14% non-performing assets level 79% of loan portfolio real-estate secured with combined wtd avg LTV of 51% CRE portfolio comprises 28% of total loans, office 3%

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highlights – balance sheet $ in billions

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our deposits through our 127 year history in the islands, Bank of Hawai‘i has developed an exceptionally seasoned deposit base, built one relationship at a time, over many years, and in neighborhoods and communities we understand unique marketplace diversified long tenured ✔ ✔ ✔

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leader in a unique deposit market source: FDIC Annual Summary of Deposits as of June 30, 2019, June 30, 2023 and June 30, 2024 the leader in a unique deposit market with five local competitors holding 96% of the bank deposit market

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stable deposit balances $ in billions note: numbers may not add up due to rounding

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cost of fundsinterest-bearing deposits source: S&P Capital IQ; KBW Regional Banking Index (KRX)

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cost of fundstotal deposits source: S&P Capital IQ; KBW Regional Banking Index (KRX)

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unemployment experience & forecast source for Hawai‘i unemployment: University of Hawaii Economic Research Organization (UHERO), seasonally adjusted source for national unemployment: Bureau of Labor Statistics, seasonally adjusted 10

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11 visitor arrivals monthly by market, indexed to January 2017 source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT)

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revenue per available room revenue per available room (RevPAR) source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT)

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  single family homes condominiums   YTD-24 YTD-23 Δ YTD-23 YTD-24 YTD-23 Δ YTD-23 median sales price (000s) $1,100 $1,050 4.8% $510 $505 1.0% closed sales 2,101 1,985 5.8% 3,390 3,592 -5.6% median days on market 18 22 4 days 29 20 9 days stable real estate prices Oahu market indicators – YTD 2024 as of September source: Honolulu Board of Realtors, compiled from MLS data

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credit performance

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lending philosophy note: as of September 30, 2024 we lend in our core markets to long-standing relationships

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steady organic loan growth $ in billions

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$8.0B consumer consumer portfolio 57% of total loans asset type % total consumer % total loans WALTV wtd avg FICO residential mortgage 58% 33% 49% 805 home equity 27% 16% 46% 790 real estate secured 85% 49% 48% 800 automobile 10% 6% n/a 733 other consumer 5% 3% n/a 759 total consumer 100% 57% n/a 792 note: $ in billions

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commercial portfolio residential mortgage home equity 43% of total loans $5.9B commercial asset type % total comml % total loans WALTV commercial real estate 65% 28% 56% construction 5% 2% 56% real estate secured 71% 30% 56% commercial & industrial 28% 12% n/a leasing 1% 0.4% n/a total commercial 100% 43% n/a note: $ in billions; rates may not foot due to rounding; excludes $6MM in PPP loan balances including deferred costs and fees

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vacancy inventory (sq ft)   2Q24 2Q23 10 yr avg 10 yr CAGR industrial 1.05% 0.76% 1.75% 0.28% office 13.57% 12.71% 12.46% - 1.08% retail 6.09% 5.92% 5.91% 0.74% multi-family 4.10% 4.40% 4.67% 0.70% Oahu market vacancies and inventory note: 10-year average vacancy and 10-yr CAGR for inventory are based on year-end 2013 through 2023 source: Colliers (industrial, office, retail) and CoStar (multi-family) stable real estate market

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commercial real estate (CRE) 28% of total loans wtd avg LTV 58% 56% 54% 53% 57% 54% % owner n/a 42% 4% n/a 20% 26% avg exposure ($millions) $3.1 $2.5 $4.1 $13.6 $1.8 $3.8

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CRE scheduled maturities modest near-term maturities

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CRE loan balances by LTV LTV > 80% - $84MM, 2.2% of CRE

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credit quality 1 77% of total criticized is secured with 57% wtd avg LTV 2 adjusted to exclude loan fully paid off in October 1

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financial update

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NII and NIM trends increasing NII and NIM $ in millions

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NII breakdown $ in millions

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cashflow repricing quarterly impact from cashflows repricing: +$3.6 million $ in millions note: quarterly impact from cashflows repricing assumes that the cashflows from maturities/prepayments from loans are reinvested into the same products; assumes cashflows from maturities/prepayments from investment portfolio are reinvested into Fed Funds at 5.3%

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deposit mix shift and repricing quarterly NII impact from deposit mix shift and repricing in 3Q24: $(2.6) million $ in millions note: low yield interest-bearing deposits include accounts yielding interest of 10 bps or less

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rate sensitive earning assets and interest-bearing deposits net NII impact per quarter for 50 bps FF decrease from rate sensitive earning assets: $(9.6) million short-term net NII impact per quarter for 50 bps FF decrease from rate sensitive deposits: +$7.1 million long-term net NII impact per quarter for 50 bps FF decrease from rate sensitive deposits: +$10.8 million short-term net NII impact: -$(2.5) million & long-term net NII impact: +$1.2 million note: loans, investments and swap balances are as of September 30; FF sold balance is 3Q24 quarterly average balance; rate sensitive deposit balances are 3Q24 average balances; low-yield accounts are accounts yielding interest of 10 bps or less; all of qualified business money management checking accounts are included in ‘IBD excl. low-yield accounts’; long-term NII impact per quarter for 50 bps FF decrease from rate sensitive deposits assumes 85% beta on savings excl. low-yield accounts & IBD excl. low-yield accounts and 100% beta on time deposits; short-term NII impact assumes 0% beta on time deposits rate sensitive earning assets $9.7B rate sensitive interest-bearing deposits balances balances NII impact NII impact $7.6B

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time deposit maturity schedule 39% of time deposits set to reprice in 3 months and 70% in 6 months note: as of September 30, 2024

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optimizing balance sheet note: swaps in ‘earning asset composition’ and ‘swap composition’ does not include $300 million of forward swaps; ‘securities purchases / sales’ do not include stock and PCLI purchases

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noninterest income $ in millions increasing core noninterest income note: numbers may not add up due to rounding normalizing items: +$0.8 Visa Class B conversion ratio adjustment +$4.6 net loss on securities sales -$14.7 gain on early termination of private repurchase agreements

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noninterest expense $ in millions continued discipline in expense management note: numbers may not add up due to rounding normalizing items: -$2.1 separation -$0.4 extraordinary expenses related to Maui wildfires normalizing items: -$2.6 FDIC special assessment -$0.8 separation -$0.6 other expenses (not expected to recur in 2024)

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financial summary $ in millions, except per share amounts 3Q 2024 2Q 2024 3Q 2023 ∆ 2Q 2024 ∆ 3Q 2023 net interest income $ 117.6 $ 114.8 $ 120.9 $ 2.8 $ (3.3) noninterest income 45.1   42.1   50.3   3.0   (5.2)   total revenue 162.7 156.9 171.3 5.8 (8.5) noninterest expense 107.1   109.2   105.6   (2.1)   1.5   operating income 55.6   47.7   65.7 7.9 (10.0) credit provision 3.0 2.4 2.0 0.6 1.0 income taxes 12.3 11.2 15.8 1.1 (3.5) net income $ 40.4   $ 34.1   $ 47.9   $ 6.3   $ (7.5)   net income available to common $ 36.9   $ 32.1   $ 45.9   $ 4.8   $ (9.0)   diluted EPS $ 0.93   $ 0.81   $ 1.17   $ 0.12   $ (0.24)   return on assets 0.69 % 0.59 % 0.78 % 0.10 % (0.09) % return on average common equity 11.50 10.41 15.38 1.09 (3.88) net interest margin 2.18 2.15 2.13 0.03 0.05 end of period balances investment portfolio $ 7,261 $ 7,111 $ 7,475 2.1 % (2.9) % loans and leases 13,919 13,831 13,919 0.6 (0.0) total deposits 20,978 20,409 20,802 2.8 0.8 shareholders' equity 1,665 1,613 1,364 3.3 22.1 note: numbers may not add up due to rounding

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capital note: 3Q24 regulatory capital ratios are preliminary; AOCI $ in millions 13.6% strong capital 13.6% RWA / total assets 13.6% AOCI

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high quality and low cost deposit base in unique and competitively advantageous deposit market continuing trend of increase in NII and NIM exceptional credit quality strong liquidity and risk-based capital takeaways

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Q & A

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appendix

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insured/collateralized deposits note: as of September 30, 2024, numbers may not add up due to rounding

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note: as of September 30, 2024, cash includes fed funds sold and cash and due from banks, and securities available includes unencumbered investment securities Bank of Hawai‘i carries substantial liquidity lines and equivalents for both day-to-day operational and liquidity backstop purposes readily available liquidity

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Oahu market inventory CRE supply constraints 10-yr CAGR: 0.3% 10-yr CAGR: -1.1% 10-yr CAGR: 0.7% 10-yr CAGR: 0.7% note: 10-yr CAGR for inventory are based on year-end 2013 through 2023 source: Colliers (industrial, office, retail) and CoStar (multi-family)

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CRE office 3% of total loans 57% wtd avg LTV $1.8MM average exposure 24% CBD (Downtown Honolulu) - 63% wtd avg LTV - 46% with repayment guaranties 3% maturing prior to 2026 2.4% criticized highlights $372MM

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CRE multi-family 7% of total loans 58% wtd avg LTV $3.1MM average exposure 99.2% LIHTC, affordable or market 18% maturing prior to 2026 5.8% criticized highlights $923MM