Bank of Hawai‘i Corporation Fourth Quarter 2022 Financial Results

Rhea-AI Summary

Bank of Hawai‘i Corporation (NYSE: BOH) reported a diluted EPS of $5.48 for 2022, down from $6.25 in 2021. Net income decreased by 10.9% to $225.8 million. For Q4 2022, diluted EPS was $1.50, up 17.2% from the previous quarter but down 4.0% year-over-year. Q4 net income totaled $61.3 million. The bank declared a dividend of $0.70 per share. Key metrics included a return on average assets of 0.98% and a return on equity of 17.83% for 2022. Total assets reached $23.6 billion, and loans and leases increased by 11.3% YoY to $13.6 billion. The Tier 1 Capital Ratio was 12.15%, down from 13.56% a year prior.

Positive

• Dividend declared at $0.70 per share.
• Total loans and leases up 11.3% year-over-year to $13.6 billion.
• Return on average common equity improved to 21.28% in Q4 2022.
• Strong asset quality with non-performing assets at 0.09%.

Negative

• Net income for 2022 down 10.9% compared to 2021.
• Diluted EPS decreased from $6.25 in 2021 to $5.48 in 2022.
• Tier 1 Capital Ratio decreased from 13.56% in 2021 to 12.15% in 2022.

• 2022 Diluted Earnings Per Common Share $5.48
• 2022 Net Income $225.8 Million
• Diluted Earnings Per Common Share $1.50 for the Fourth Quarter of 2022
• Net Income $61.3 Million for the Fourth Quarter of 2022
• Board of Directors Declares Dividend of $0.70 Per Common Share

HONOLULU--(BUSINESS WIRE)-- Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $5.48 for the full year of 2022, compared with diluted earnings per common share of $6.25 for the full year of 2021. Net income for the year was $225.8 million, down 10.9% from the previous year. Return on average assets for the full year of 2022 was 0.98%, compared to 1.14% in 2021. Return on average common equity for the full year of 2022 was 17.83% compared to 17.92% in 2021.

Diluted earnings per common share for the fourth quarter of 2022 was $1.50, compared with diluted earnings per common share of $1.28 in the previous quarter and $1.55 in the same quarter last year. Net income for the fourth quarter of 2022 was $61.3 million, up 16.1% from the third quarter of 2022 and down 4.0% from the fourth quarter of 2021. The increase from the third quarter of 2022 was primarily due to a one-time charge in the third quarter related to our agreement to sell assets that terminated certain leveraged leases.

“Bank of Hawai‘i ended 2022 with strong financial performance,” said Peter Ho, Chairman, President, and CEO. “As we look forward into 2023, we are well positioned for a challenging environment, thanks to our leading market position, superior credit quality, disciplined expense management, and strong liquidity and capital.”

Financial Highlights

• The return on average assets for the fourth quarter of 2022 was 1.05% compared with 0.91% in the previous quarter and 1.12% in the same quarter of 2021.
• The return on average common equity for the fourth quarter of 2022 was 21.28% compared with 16.98% in the previous quarter and 17.40% in the same quarter of 2021.
• Net interest income for the fourth quarter of 2022 was $140.7 million, a decrease of 0.6% from the third quarter of 2022 and an increase of 11.4% from the fourth quarter of 2021. Net interest margin was 2.60% in the fourth quarter of 2022, unchanged from the previous quarter and an increase of 26 basis points from the same quarter of 2021.
  • The increase in net interest income and margin in the fourth quarter of 2022 compared to the prior year was due to the higher rate environment and strong loan growth over the year.
• There was a $0.2 million provision for credit losses for the fourth quarter of 2022 compared with no provision in the previous quarter and a net benefit of $9.7 million in the same quarter of 2021.
• Noninterest income was $41.2 million in the fourth quarter of 2022, an increase of 34.3% from the previous quarter and a decrease of 3.3% from the same quarter of 2021.
  • Noninterest income in the third quarter of 2022 included a one-time pre-tax charge of $6.9 million related to our agreement to sell assets that terminated leveraged leases related to 31 locomotives. In addition, noninterest income in the third quarter also included a negative adjustment of $0.9 million related to a change in the Visa Class B conversion ratio.
• Noninterest expense was $102.7 million in the fourth quarter of 2022, a decrease of 2.9% from the previous quarter and an increase of 1.0% from the same quarter of 2021.
  • Noninterest expense in the third quarter of 2022 included $1.8 million in separation expenses.
• The effective tax rate for the fourth quarter of 2022 was 22.4% compared with 20.7% in the previous quarter and 17.1% during the same quarter of 2021.
  • The lower effective tax rate in the prior quarter was primarily due to tax benefits related to the aforementioned agreement to sell assets that terminated certain leveraged leases.
  • The lower effective tax rate in the fourth quarter of 2021 included a $3.6 million benefit due to larger than expected tax credits from 2020 and a reduction in the valuation allowance related to low-income housing partnerships.

Asset Quality

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

• Total non-performing assets were $12.6 million at December 31, 2022, down $1.2 million from September 30, 2022 and down $6.3 million from December 31, 2021. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.09% at the end of the quarter, a decrease of 1 basis point from the end of the prior quarter and a decrease of 6 basis points from the same quarter of 2021.
• Net loan and lease charge-offs during the fourth quarter of 2022 were $1.9 million or 0.05% annualized of total average loans and leases outstanding.
  • Net loan and lease charge-offs for the fourth quarter of 2022 were comprised of charge-offs of $3.2 million partially offset by recoveries of $1.4 million.
  • Compared to the prior quarter, net loan and lease charge-offs increased by $0.7 million or 2 basis points annualized on total average loans and leases outstanding.
  • Compared to the same quarter of 2021, net loan and lease charge-offs increased by $1.2 million or 3 basis points annualized on total average loans and leases outstanding.
• The allowance for credit losses on loans and leases was $144.4 million at December 31, 2022, a decrease of $2.0 million from September 30, 2022 and a decrease of $13.4 million from December 31, 2021. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.06% at the end of the quarter, down 4 basis points from the end of the prior quarter and down 23 basis points from the end of the same quarter of 2021.

Balance Sheet

• Total assets were $23.6 billion at December 31, 2022, an increase of 2.0% from September 30, 2022 and an increase of 3.6% from December 31, 2021.
• The investment securities portfolio was $8.3 billion at December 31, 2022, an increase of 4.7% from September 30, 2022 and a decrease of 7.9% from December 31, 2021.
  • 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 $13.6 billion at December 31, 2022, an increase of 2.4% from September 30, 2022 and an increase of 11.3% from December 31, 2021.
  • Total loans and leases excluding PPP loans were $13.6 billion at December 31, 2022, an increase of 2.5% from September 30, 2022 and an increase of 12.3% from December 31, 2021.
• Total deposits were $20.6 billion at December 31, 2022, a decrease of 1.3% from September 30, 2022 and an increase of 1.3% from December 31, 2021.

Capital and Dividends

• The Tier 1 Capital Ratio was 12.15% at December 31, 2022 compared with 12.72% at September 30, 2022 and 13.56% at December 31, 2021.
• The Tier 1 Leverage Ratio was 7.37% at December 31, 2022 compared with 7.28% at September 30, 2022 and 7.32% at December 31, 2021.
• The Company repurchased 192.3 thousand shares of common stock at a total cost of $15.0 million under its share repurchase program in the fourth quarter of 2022 at an average cost of $77.77 per share repurchased.
  • The Company’s Board of Directors increased the authorization under the share repurchase program by an additional $100.0 million. Total remaining buyback authority under the share repurchase program was $135.9 million at January 20, 2023.
• 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 March 14, 2023 to shareholders of record at the close of business on February 28, 2023.
• On January 4, 2023, the Board of Directors declared the quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, on its preferred stock. The depositary shares representing the Series A Preferred Stock are traded on the NYSE under the symbol “BOH.PRA.” The dividend will be payable on February 1, 2023 to shareholders of record of the preferred stock at the close of business on January 17, 2023.

Conference Call Information

The Company will review its fourth quarter financial results today at 8:00 a.m. Hawaii Time (1:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawai‘i Corporation's website, www.boh.com.

• The webcast can be accessed via the link below: https://register.vevent.com/register/BIdfc785c2e350424681d5c04507f9b94f.
• A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawaii Time on Monday, January 23, 2023. The replay will be accessible via the same link. In addition, the replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawai‘i Corporation's Annual Report on Form 10-K for the year ended December 31, 2021 and its Form 10-Q for the fiscal quarters ended March 31, 2022, June 30, 2022 and September 30, 2022, which were filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

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

Bank of Hawai‘i Corporation and Subsidiaries
Financial Highlights																		Table 1
		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,
(dollars in thousands, except per share amounts)		2022				2022				2021				2022				2021
For the Period:
Operating Results
Net Interest Income		$	140,738			$	141,655			$	126,388			$	540,558			$	497,290
Provision for Credit Losses			200				-				(9,700	)			(7,800	)			(50,500	)
Total Noninterest Income			41,172				30,660				42,574				157,541				171,353
Total Noninterest Expense			102,703				105,749				101,678				415,265				393,589
Pre-Provision Net Revenue			79,207				66,566				67,284				282,834				275,054
Net Income			61,307				52,801				63,837				225,804				253,372
Net Income Available to Common Shareholders			59,338				50,832				61,868				217,928				250,397
Basic Earnings Per Common Share			1.51				1.28				1.56				5.50				6.29
Diluted Earnings Per Common Share			1.50				1.28				1.55				5.48				6.25
Dividends Declared Per Common Share			0.70				0.70				0.70				2.80				2.74
Performance Ratios
Return on Average Assets			1.05	%			0.91	%			1.12	%			0.98	%			1.14	%
Return on Average Shareholders' Equity			18.91				15.31				15.92				16.10				16.94
Return on Average Common Equity			21.28				16.98				17.40				17.83				17.92
Efficiency Ratio 1			56.46				61.37				60.18				59.49				58.86
Net Interest Margin 2			2.60				2.60				2.34				2.50				2.36
Dividend Payout Ratio 3			46.36				54.69				44.87				50.91				43.56
Average Shareholders' Equity to Average Assets			5.56				5.91				7.02				6.10				6.73
Average Balances
Average Loans and Leases		$	13,452,791			$	13,126,717			$	12,086,705			$	12,896,510			$	12,023,669
Average Assets			23,147,398				23,135,820				22,666,280				23,006,671				22,227,156
Average Deposits			20,341,327				20,863,681				20,222,470				20,550,739				19,771,147
Average Shareholders' Equity			1,286,291				1,367,946				1,590,600				1,402,533				1,495,586
Per Share of Common Stock
Book Value		$	28.54			$	27.55			$	35.57			$	28.54			$	35.57
Tangible Book Value			27.75				26.76				34.78				27.75				34.78
Market Value
Closing			77.56				76.12				83.76				77.56				83.76
High			82.87				85.45				88.96				92.38				99.10
Low			70.15				70.89				78.73				70.15				75.65
										December 31,				September 30,				December 31,
										2022				2022				2021
As of Period End:
Balance Sheet Totals
Loans and Leases										$	13,646,420			$	13,321,606			$	12,259,076
Total Assets											23,606,877				23,134,040				22,784,941
Total Deposits											20,615,696				20,888,773				20,360,108
Other Debt											410,294				10,319				10,391
Total Shareholders' Equity											1,316,995				1,282,384				1,611,611
Asset Quality
Non-Performing Assets										$	12,647			$	13,868			$	18,966
Allowance for Credit Losses - Loans and Leases											144,439				146,436				157,821
Allowance to Loans and Leases Outstanding 4											1.06	%			1.10	%			1.29	%
Capital Ratios 5
Common Equity Tier 1 Capital Ratio											10.92	%			11.42	%			12.12	%
Tier 1 Capital Ratio											12.15				12.72				13.56
Total Capital Ratio											13.17				13.82				14.81
Tier 1 Leverage Ratio											7.37				7.28				7.32
Total Shareholders' Equity to Total Assets											5.58				5.54				7.07
Tangible Common Equity to Tangible Assets 6											4.69				4.64				6.15
Tangible Common Equity to Risk-Weighted Assets 6											7.76				7.97				11.44
Non-Financial Data
Full-Time Equivalent Employees											2,076				2,115				2,056
Branches											51				51				54
ATMs											320				316				307

1		Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
2		Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
3		Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.
4		The numerator comprises the Allowance for Credit Losses - Loans and Leases.
5		Regulatory capital ratios as of December 31, 2022 are preliminary.
6		Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures.
		Tangible common equity is defined by the Company as common shareholders' equity minus goodwill. See Table 2 "Reconciliation of Non-GAAP Financial Measures".

Bank of Hawai‘i Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures										Table 2
		December 31,				September 30,				December 31,
(dollars in thousands)		2022				2022				2021
Total Shareholders' Equity		$	1,316,995			$	1,282,384			$	1,611,611
Less: Preferred Stock			180,000				180,000				180,000
Goodwill			31,517				31,517				31,517
Tangible Common Equity		$	1,105,478			$	1,070,867			$	1,400,094
Total Assets			23,606,877				23,134,040				22,784,941
Less: Goodwill			31,517				31,517				31,517
Tangible Assets		$	23,575,360			$	23,102,523			$	22,753,424
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements 1		$	14,238,798			$	13,428,188			$	12,236,805
Total Shareholders' Equity to Total Assets			5.58	%			5.54	%			7.07	%
Tangible Common Equity to Tangible Assets (Non-GAAP)			4.69	%			4.64	%			6.15	%
Tier 1 Capital Ratio 1			12.15	%			12.72	%			13.56	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1			7.76	%			7.97	%			11.44	%

1

Regulatory capital ratios as of December 31, 2022 are preliminary.

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Income																		Table 3
		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,
(dollars in thousands, except per share amounts)		2022				2022				2021				2022				2021
Interest Income
Interest and Fees on Loans and Leases		$	128,683			$	115,013			$	97,853			$	439,798			$	398,616
Income on Investment Securities
Available-for-Sale			18,476				16,995				15,850				70,555				64,550
Held-to-Maturity			23,708				20,243				18,325				81,490				61,955
Deposits			13				10				1				32				10
Funds Sold			1,093				2,335				104				4,274				883
Other			340				322				176				1,217				702
Total Interest Income			172,313				154,918				132,309				597,366				526,716
Interest Expense
Deposits			23,494				10,296				2,898				39,678				15,216
Securities Sold Under Agreements to Repurchase			4,289				2,745				2,834				12,600				13,260
Funds Purchased			318				40				6				417				7
Short-Term Borrowings			1,978				-				-				2,070				-
Other Debt			1,496				182				183				2,043				943
Total Interest Expense			31,575				13,263				5,921				56,808				29,426
Net Interest Income			140,738				141,655				126,388				540,558				497,290
Provision for Credit Losses			200				-				(9,700	)			(7,800	)			(50,500	)
Net Interest Income After Provision for Credit Losses			140,538				141,655				136,088				548,358				547,790
Noninterest Income
Trust and Asset Management			10,652				10,418				11,693				43,803				46,068
Mortgage Banking			991				1,002				2,908				5,980				14,964
Service Charges on Deposit Accounts			7,513				7,526				6,861				29,620				25,564
Fees, Exchange, and Other Service Charges			13,906				13,863				14,439				54,914				55,457
Investment Securities Losses, Net			(1,124	)			(2,147	)			(1,258	)			(6,111	)			(1,297	)
Annuity and Insurance			1,087				1,034				876				3,782				3,224
Bank-Owned Life Insurance			2,475				2,486				1,907				9,968				7,784
Other			5,672				(3,522	)			5,148				15,585				19,589
Total Noninterest Income			41,172				30,660				42,574				157,541				171,353
Noninterest Expense
Salaries and Benefits			57,639				59,938				59,434				235,270				228,293
Net Occupancy			9,499				10,186				9,028				39,441				26,244
Net Equipment			9,942				9,736				9,105				38,374				35,703
Data Processing			4,579				4,616				4,696				18,362				20,297
Professional Fees			3,958				3,799				3,427				14,557				12,895
FDIC Insurance			1,774				1,680				1,619				6,546				6,536
Other			15,312				15,794				14,369				62,715				63,621
Total Noninterest Expense			102,703				105,749				101,678				415,265				393,589
Income Before Provision for Income Taxes			79,007				66,566				76,984				290,634				325,554
Provision for Income Taxes			17,700				13,765				13,147				64,830				72,182
Net Income		$	61,307			$	52,801			$	63,837			$	225,804			$	253,372
Preferred Stock Dividends			1,969				1,969				1,969				7,877				2,975
Net Income Available to Common Shareholders		$	59,338			$	50,832			$	61,868			$	217,927			$	250,397
Basic Earnings Per Common Share		$	1.51			$	1.28			$	1.56			$	5.50			$	6.29
Diluted Earnings Per Common Share		$	1.50			$	1.28			$	1.55			$	5.48			$	6.25
Dividends Declared Per Common Share		$	0.70			$	0.70			$	0.70			$	2.80			$	2.74
Basic Weighted Average Common Shares			39,395,338				39,567,047				39,741,063				39,601,089				39,837,798
Diluted Weighted Average Common Shares			39,618,896				39,758,209				39,955,525				39,788,002				40,053,664

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)																	Table 4
		Three Months Ended											Year Ended
		December 31,			September 30,				December 31,				December 31,
(dollars in thousands)		2022			2022				2021				2022				2021
Net Income		$	61,307		$	52,801			$	63,837			$	225,804			$	253,372
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities			5,677			(79,600	)			(26,244	)			(376,694	)			(83,958	)
Defined Benefit Plans			7,359			354				8,430				8,418				9,754
Other Comprehensive Income (Loss)			13,036			(79,246	)			(17,814	)			(368,276	)			(74,204	)
Comprehensive Income (Loss)		$	74,343		$	(26,445	)		$	46,023			$	(142,472	)		$	179,168

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
		December 31,				September 30,				December 31,
(dollars in thousands)		2022				2022				2021
Assets
Interest-Bearing Deposits in Other Banks		$	3,724			$	5,429			$	2,571
Funds Sold			81,364				402,714				361,536
Investment Securities
Available-for-Sale			2,844,823				2,424,608				4,276,056
Held-to-Maturity (Fair Value of $4,615,393; $4,668,074; and $4,646,619)			5,414,139				5,461,160				4,694,780
Loans Held for Sale			1,035				418				26,746
Loans and Leases			13,646,420				13,321,606				12,259,076
Allowance for Credit Losses			(144,439	)			(146,436	)			(157,821	)
Net Loans and Leases			13,501,981				13,175,170				12,101,255
Total Earning Assets			21,847,066				21,469,499				21,462,944
Cash and Due from Banks			316,679				247,506				196,327
Premises and Equipment, Net			206,777				208,251				199,393
Operating Lease Right-of-Use Assets			92,307				94,613				95,621
Accrued Interest Receivable			61,002				50,143				45,242
Foreclosed Real Estate			1,040				1,040				2,332
Mortgage Servicing Rights			22,619				23,104				22,251
Goodwill			31,517				31,517				31,517
Bank-Owned Life Insurance			453,882				451,407				344,587
Other Assets			573,988				556,960				384,727
Total Assets		$	23,606,877			$	23,134,040			$	22,784,941
Liabilities
Deposits
Noninterest-Bearing Demand		$	6,714,982			$	7,300,157			$	7,275,287
Interest-Bearing Demand			4,232,567				4,399,625				4,628,567
Savings			7,962,410				7,954,006				7,456,165
Time			1,705,737				1,234,985				1,000,089
Total Deposits			20,615,696				20,888,773				20,360,108
Securities Sold Under Agreements to Repurchase			725,490				425,490				450,490
Other Debt			410,294				10,319				10,391
Operating Lease Liabilities			100,526				102,705				103,210
Retirement Benefits Payable			26,991				37,053				38,494
Accrued Interest Payable			9,698				3,405				2,499
Taxes Payable			7,104				13,527				11,901
Other Liabilities			394,083				370,384				196,237
Total Liabilities			22,289,882				21,851,656				21,173,330
Shareholders' Equity
Preferred Stock ($.01 par value; authorized 180,000 shares;
issued / outstanding: December 31, 2022; September 30, 2022; and December 31, 2021 - 180,000)			180,000				180,000				180,000
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2022 - 58,733,625 / 39,835,750;
September 30, 2022 - 58,728,796 / 40,011,473; and December 31, 2021 - 58,554,669 / 40,253,193)			582				582				581
Capital Surplus			620,578				615,985				602,508
Accumulated Other Comprehensive Loss			(434,658	)			(447,694	)			(66,382	)
Retained Earnings			2,055,912				2,024,641				1,950,375
Treasury Stock, at Cost (Shares: December 31, 2022 - 18,897,875; September 30, 2022 - 18,717,323;
and December 31, 2021 - 18,301,476)			(1,105,419	)			(1,091,130	)			(1,055,471	)
Total Shareholders' Equity			1,316,995				1,282,384				1,611,611
Total Liabilities and Shareholders' Equity		$	23,606,877			$	23,134,040			$	22,784,941

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																													Table 6
																	Accumulated
																	Other
		Preferred					Common										Comprehensive
		Shares		Preferred			Shares			Common			Capital				Income				Retained				Treasury
(dollars in thousands)		Outstanding		Stock			Outstanding			Stock			Surplus				(Loss)				Earnings				Stock				Total
Balance as of December 31, 2020		-		$	-		40,119,312			$	580		$	591,360			$	7,822			$	1,811,979			$	(1,037,234	)		$	1,374,507
Net Income		-			-		-				-			-				-				253,372				-				253,372
Other Comprehensive Loss		-			-		-				-			-				(74,204	)			-				-				(74,204	)
Share-Based Compensation		-			-		-				-			13,267				-				-				-				13,267
Preferred Stock Issued, Net		180,000			180,000		-				-			(4,513	)			-				-				-				175,487
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits		-			-		507,121				1			2,394				-				(1,368	)			13,021				14,048
Common Stock Repurchased		-			-		(373,240	)			-			-				-				-				(31,258	)			(31,258	)
Cash Dividends Declared Common Stock ($2.74 per share)		-			-		-				-			-				-				(110,633	)			-				(110,633	)
Cash Dividends Declared Preferred Stock		-			-		-				-			-				-				(2,975	)			-				(2,975	)
Balance as of December 31, 2021		180,000		$	180,000		40,253,193			$	581		$	602,508			$	(66,382	)		$	1,950,375			$	(1,055,471	)		$	1,611,611
Net Income		-			-		-				-			-				-				225,804				-				225,804
Other Comprehensive Loss		-			-		-				-			-				(368,276	)			-				-				(368,276	)
Share-Based Compensation		-			-		-				-			16,066				-				-				-				16,066
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits		-			-		272,007				1			2,004				-				167				5,115				7,287
Common Stock Repurchased		-			-		(689,450	)			-			-				-				-				(55,063	)			(55,063	)
Cash Dividends Declared Common Stock ($2.80 per share)		-			-		-				-			-				-				(112,557	)			-				(112,557	)
Cash Dividends Declared Preferred Stock		-			-		-				-			-				-				(7,877	)			-				(7,877	)
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

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
		December 31, 2022									September 30, 2022									December 31, 2021
		Average			Income/			Yield/			Average			Income/			Yield/			Average			Income/			Yield/
(dollars in millions)		Balance			Expense 2			Rate			Balance			Expense 2			Rate			Balance			Expense 2			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	2.2		$	-		2.32	%		$	2.9		$	-		1.32	%		$	2.2		$	-		0.05	%
Funds Sold			118.1			1.2		3.62				411.8			2.3		2.22				273.2			0.1		0.15
Investment Securities
Available-for-Sale
Taxable			2,593.5			18.4		2.83				3,481.9			17.0		1.95				4,308.6			15.8		1.47
Non-Taxable			7.5			0.1		4.14				2.5			-		1.56				5.8			0.1		3.67
Held-to-Maturity
Taxable			5,401.9			23.5		1.74				4,645.7			20.1		1.73				4,757.4			18.1		1.52
Non-Taxable			35.4			0.2		2.10				35.6			0.2		2.10				58.0			0.3		2.31
Total Investment Securities			8,038.3			42.2		2.10				8,165.7			37.3		1.82				9,129.8			34.3		1.50
Loans Held for Sale			3.3			-		5.65				4.3			0.1		4.46				20.8			0.1		2.85
Loans and Leases 3
Commercial and Industrial			1,379.9			14.8		4.25				1,353.8			12.5		3.66				1,297.0			8.9		2.72
Paycheck Protection Program			21.3			0.1		2.30				28.0			0.2		3.02				181.0			5.7		12.55
Commercial Mortgage			3,627.4			40.6		4.44				3,530.9			33.3		3.74				3,075.1			22.2		2.86
Construction			246.9			3.3		5.29				233.0			2.8		4.81				246.8			2.2		3.50
Commercial Lease Financing			72.0			0.3		1.49				89.1			0.4		1.58				107.4			0.3		1.12
Residential Mortgage			4,617.9			38.9		3.37				4,526.6			37.4		3.30				4,293.6			33.9		3.16
Home Equity			2,207.7			17.9		3.23				2,144.8			16.4		3.04				1,757.8			12.8		2.88
Automobile			851.1			7.0		3.29				795.5			6.4		3.19				730.2			6.1		3.34
Other 4			428.6			6.1		5.64				425.0			5.9		5.48				397.8			5.8		5.79
Total Loans and Leases			13,452.8			129.0		3.81				13,126.7			115.3		3.49				12,086.7			97.9		3.22
Other			50.1			0.4		2.72				36.9			0.3		3.49				34.4			0.2		2.05
Total Earning Assets			21,664.8			172.8		3.17				21,748.3			155.3		2.84				21,547.1			132.6		2.45
Cash and Due from Banks			244.3									233.5									231.3
Other Assets			1,238.3									1,154.0									887.9
Total Assets		$	23,147.4								$	23,135.8								$	22,666.3
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand		$	4,131.4			3.5		0.33			$	4,286.0			1.4		0.13			$	4,685.7			0.7		0.06
Savings			7,869.9			13.4		0.68				7,962.0			6.6		0.33				7,443.2			1.2		0.06
Time			1,467.7			6.6		1.78				1,146.9			2.3		0.79				1,019.2			1.0		0.40
Total Interest-Bearing Deposits			13,469.0			23.5		0.69				13,394.9			10.3		0.30				13,148.1			2.9		0.09
Short-Term Borrowings			234.9			2.3		3.82				4.9			0.1		3.17				18.5			-		0.13
Securities Sold Under Agreements to Repurchase			594.5			4.3		2.82				425.5			2.7		2.52				450.5			2.8		2.46
Other Debt			137.5			1.5		4.32				10.3			0.2		7.05				10.4			0.2		7.05
Total Interest-Bearing Liabilities			14,435.9			31.6		0.87				13,835.6			13.3		0.38				13,627.5			5.9		0.17
Net Interest Income					$	141.2								$	142.0								$	126.7
Interest Rate Spread								2.30	%								2.46	%								2.28	%
Net Interest Margin								2.60	%								2.60	%								2.34	%
Noninterest-Bearing Demand Deposits			6,872.3									7,468.8									7,074.4
Other Liabilities			552.9									463.5									373.8
Shareholders' Equity			1,286.3									1,367.9									1,590.6
Total Liabilities and Shareholders' Equity		$	23,147.4								$	23,135.8								$	22,666.3

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 $433,000, $343,000, and $280,000 for the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, respectively.
3		Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
4		Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1														Table 7b
		Year Ended									Year Ended
		December 31, 2022									December 31, 2021
		Average			Income/			Yield/			Average			Income/			Yield/
(dollars in millions)		Balance			Expense 2			Rate			Balance			Expense 2			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	3.0		$	-		1.05	%		$	2.7		$	-		0.36	%
Funds Sold			260.5			4.3		1.64				692.4			0.9		0.13
Investment Securities
Available-for-Sale
Taxable			3,644.2			70.5		1.93				4,266.9			64.2		1.50
Non-Taxable			4.0			0.1		2.92				10.1			0.4		4.21
Held-to-Maturity
Taxable			4,750.0			80.9		1.70				3,988.1			61.0		1.53
Non-Taxable			35.6			0.7		2.10				50.7			1.2		2.41
Total Investment Securities			8,433.8			152.2		1.80				8,315.8			126.8		1.53
Loans Held for Sale			6.9			0.3		3.70				24.3			0.7		2.82
Loans and Leases 3
Commercial and Industrial			1,349.3			46.2		3.42				1,285.1			37.1		2.88
Paycheck Protection Program			44.0			2.7		6.07				453.9			25.7		5.67
Commercial Mortgage			3,420.1			121.9		3.56				2,940.0			86.7		2.95
Construction			232.6			10.6		4.56				271.6			9.5		3.50
Commercial Lease Financing			88.5			1.3		1.49				107.2			1.5		1.42
Residential Mortgage			4,484.2			147.4		3.29				4,232.4			140.1		3.31
Home Equity			2,072.2			62.1		3.00				1,637.1			49.6		3.03
Automobile			786.1			25.4		3.23				717.0			24.6		3.43
Other 4			419.5			23.0		5.49				379.4			23.9		6.30
Total Loans and Leases			12,896.5			440.6		3.42				12,023.7			398.7		3.32
Other			40.5			1.2		3.01				32.9			0.7		2.13
Total Earning Assets			21,641.2			598.6		2.77				21,091.8			527.8		2.50
Cash and Due from Banks			237.4									252.5
Other Assets			1,128.1									882.9
Total Assets		$	23,006.7								$	22,227.2
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand		$	4,377.1			6.1		0.14			$	4,509.8			2.7		0.06
Savings			7,767.7			22.9		0.30				7,421.9			6.2		0.08
Time			1,135.5			10.7		0.94				1,331.8			6.3		0.47
Total Interest-Bearing Deposits			13,280.3			39.7		0.30				13,263.5			15.2		0.11
Short-Term Borrowings			77.1			2.5		3.23				5.2			-		0.13
Securities Sold Under Agreements to Repurchase			479.8			12.6		2.63				541.9			13.3		2.45
Other Debt			42.4			2.0		4.82				27.7			0.9		3.41
Total Interest-Bearing Liabilities			13,879.6			56.8		0.41				13,838.3			29.4		0.21
Net Interest Income					$	541.8								$	498.4
Interest Rate Spread								2.36	%								2.29	%
Net Interest Margin								2.50	%								2.36	%
Noninterest-Bearing Demand Deposits			7,270.4									6,507.6
Other Liabilities			454.2									385.7
Shareholders' Equity			1,402.5									1,495.6
Total Liabilities and Shareholders' Equity		$	23,006.7								$	22,227.2

1		Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2		Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1,251,000 and $1,116,000 for the year ended December 31, 2022 and December 31, 2021, respectively.
3		Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
4		Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8a
		Three Months Ended December 31, 2022
		Compared to September 30, 2022
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	(2.1	)		$	1.0			$	(1.1	)
Investment Securities
Available-for-Sale
Taxable			(5.1	)			6.5				1.4
Non-Taxable			0.1				-				0.1
Held-to-Maturity
Taxable			3.2				0.2				3.4
Total Investment Securities			(1.8	)			6.7				4.9
Loans Held for Sale			(0.1	)			-				(0.1	)
Loans and Leases
Commercial and Industrial			0.3				2.0				2.3
Paycheck Protection Program			(0.1	)			-				(0.1	)
Commercial Mortgage			0.9				6.4				7.3
Construction			0.2				0.3				0.5
Commercial Lease Financing			(0.1	)			-				(0.1	)
Residential Mortgage			0.8				0.7				1.5
Home Equity			0.5				1.0				1.5
Automobile			0.4				0.2				0.6
Other 2			-				0.2				0.2
Total Loans and Leases			2.9				10.8				13.7
Other			0.4				(0.3	)			0.1
Total Change in Interest Income			(0.7	)			18.2				17.5
Change in Interest Expense:
Interest-Bearing Deposits
Demand			-				2.1				2.1
Savings			(0.1	)			6.9				6.8
Time			0.8				3.5				4.3
Total Interest-Bearing Deposits			0.7				12.5				13.2
Short-Term Borrowings			2.2				-				2.2
Securities Sold Under Agreements to Repurchase			1.2				0.4				1.6
Other Debt			1.4				(0.1	)			1.3
Total Change in Interest Expense			5.5				12.8				18.3
Change in Net Interest Income		$	(6.2	)		$	5.4			$	(0.8	)

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

Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8b
		Three Months Ended December 31, 2022
		Compared to December 31, 2021
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	(0.1	)		$	1.2			$	1.1
Investment Securities
Available-for-Sale
Taxable			(8.1	)			10.7				2.6
Held-to-Maturity
Taxable			2.6				2.8				5.4
Non-Taxable			(0.1	)			-				(0.1	)
Total Investment Securities			(5.6	)			13.5				7.9
Loans Held for Sale			(0.2	)			0.1				(0.1	)
Loans and Leases
Commercial and Industrial			0.6				5.3				5.9
Paycheck Protection Program			(2.9	)			(2.7	)			(5.6	)
Commercial Mortgage			4.5				13.9				18.4
Construction			-				1.1				1.1
Commercial Lease Financing			(0.1	)			0.1				-
Residential Mortgage			2.7				2.3				5.0
Home Equity			3.5				1.6				5.1
Automobile			1.0				(0.1	)			0.9
Other 2			0.4				(0.1	)			0.3
Total Loans and Leases			9.7				21.4				31.1
Other			0.1				0.1				0.2
Total Change in Interest Income			3.9				36.3				40.2
Change in Interest Expense:
Interest-Bearing Deposits
Demand			(0.1	)			2.9				2.8
Savings			0.1				12.1				12.2
Time			0.6				5.0				5.6
Total Interest-Bearing Deposits			0.6				20.0				20.6
Short-Term Borrowings			0.7				1.6				2.3
Securities Sold Under Agreements to Repurchase			1.0				0.5				1.5
Other Debt			1.4				(0.1	)			1.3
Total Change in Interest Expense			3.7				22.0				25.7
Change in Net Interest Income		$	0.2			$	14.3			$	14.5

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

Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8c
		Year Ended December 31, 2022
		Compared to December 31, 2021
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	(0.9	)		$	4.3			$	3.4
Investment Securities
Available-for-Sale
Taxable			(10.3	)			16.6				6.3
Non-Taxable			(0.2	)			(0.1	)			(0.3	)
Held-to-Maturity
Taxable			12.5				7.4				19.9
Non-Taxable			(0.3	)			(0.2	)			(0.5	)
Total Investment Securities			1.7				23.7				25.4
Loans Held for Sale			(0.6	)			0.2				(0.4	)
Loans and Leases
Commercial and Industrial			1.9				7.2				9.1
Paycheck Protection Program			(24.8	)			1.8				(23.0	)
Commercial Mortgage			15.5				19.7				35.2
Construction			(1.5	)			2.6				1.1
Commercial Lease Financing			(0.2	)			-				(0.2	)
Residential Mortgage			8.3				(1.0	)			7.3
Home Equity			13.1				(0.6	)			12.5
Automobile			2.3				(1.5	)			0.8
Other 2			2.3				(3.2	)			(0.9	)
Total Loans and Leases			16.9				25.0				41.9
Other			0.2				0.3				0.5
Total Change in Interest Income			17.3				53.5				70.8
Change in Interest Expense:
Interest-Bearing Deposits
Demand			(0.1	)			3.5				3.4
Savings			0.3				16.4				16.7
Time			(1.0	)			5.4				4.4
Total Interest-Bearing Deposits			(0.8	)			25.3				24.5
Short-Term Borrowings			0.9				1.6				2.5
Securities Sold Under Agreements to Repurchase			(1.6	)			0.9				(0.7	)
Other Debt			0.6				0.5				1.1
Total Change in Interest Expense			(0.9	)			28.3				27.4
Change in Net Interest Income		$	18.2			$	25.2			$	43.4

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

Bank of Hawai‘i Corporation and Subsidiaries
Salaries and Benefits															Table 9
		Three Months Ended										Year Ended
		December 31,				September 30,			December 31,			December 31,
(dollars in thousands)		2022				2022			2021			2022			2021
Salaries		$	37,395			$	37,792		$	35,758		$	146,840		$	135,416
Incentive Compensation			5,356				5,885			6,699			23,425			22,462
Share-Based Compensation			3,901				3,558			3,396			15,220			12,489
Commission Expense			830				1,005			2,094			4,708			8,901
Retirement and Other Benefits			4,065				4,448			4,661			17,242			20,213
Payroll Taxes			2,591				2,826			2,585			13,395			12,404
Medical, Dental, and Life Insurance			3,528				2,605			3,981			11,958			12,831
Separation Expense			(27	)			1,819			260			2,482			3,577
Total Salaries and Benefits		$	57,639			$	59,938		$	59,434		$	235,270		$	228,293

Bank of Hawai‘i Corporation and Subsidiaries
Loan and Lease Portfolio Balances														Table 10
		December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)		2022			2022			2022			2022			2021
Commercial
Commercial and Industrial		$	1,389,066		$	1,368,966		$	1,323,830		$	1,354,757		$	1,361,921
Paycheck Protection Program			19,579			22,955			31,964			57,809			126,779
Commercial Mortgage			3,725,542			3,591,943			3,464,126			3,257,689			3,152,130
Construction			260,825			236,498			246,177			248,363			220,254
Lease Financing			69,491			73,989			89,535			98,107			105,108
Total Commercial			5,464,503			5,294,351			5,155,632			5,016,725			4,966,192
Consumer
Residential Mortgage			4,653,072			4,585,723			4,486,571			4,405,718			4,309,602
Home Equity			2,225,950			2,185,484			2,101,612			1,958,285			1,836,588
Automobile			870,396			820,640			775,065			742,934			736,565
Other 1			432,499			435,408			432,693			420,830			410,129
Total Consumer			8,181,917			8,027,255			7,795,941			7,527,767			7,292,884
Total Loans and Leases		$	13,646,420		$	13,321,606		$	12,951,573		$	12,544,492		$	12,259,076
Deposits
		December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)		2022			2022			2022			2022			2021
Consumer		$	10,304,335		$	10,507,946		$	10,554,121		$	10,654,192		$	10,438,844
Commercial			8,569,670			8,841,781			8,824,609			8,818,477			8,641,932
Public and Other			1,741,691			1,539,046			1,646,951			1,243,618			1,279,332
Total Deposits		$	20,615,696		$	20,888,773		$	21,025,681		$	20,716,287		$	20,360,108

1

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

Bank of Hawai‘i Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More																		Table 11
		December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands)		2022				2022				2022				2022				2021
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial		$	37			$	49			$	85			$	99			$	243
Commercial Mortgage			3,309				3,396				3,462				8,065				8,205
Total Commercial			3,346				3,445				3,547				8,164				8,448
Consumer
Residential Mortgage			4,239				4,945				5,179				3,845				3,305
Home Equity			4,022				4,438				4,435				5,638				4,881
Total Consumer			8,261				9,383				9,614				9,483				8,186
Total Non-Accrual Loans and Leases			11,607				12,828				13,161				17,647				16,634
Foreclosed Real Estate			1,040				1,040				2,332				2,332				2,332
Total Non-Performing Assets		$	12,647			$	13,868			$	15,493			$	19,979			$	18,966
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial		$	-			$	-			$	-			$	22			$	-
Total Commercial			-				-				-				22				-
Consumer
Residential Mortgage			2,429				3,279				2,638				4,113				3,159
Home Equity			1,673				1,061				2,029				2,722				3,456
Automobile			589				467				359				504				729
Other 1			683				513				508				649				426
Total Consumer			5,374				5,320				5,534				7,988				7,770
Total Accruing Loans and Leases Past Due 90 Days or More		$	5,374			$	5,320			$	5,534			$	8,010			$	7,770
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More		$	43,658			$	44,641			$	46,024			$	54,136			$	60,519
Total Loans and Leases		$	13,646,420			$	13,321,606			$	12,951,573			$	12,544,492			$	12,259,076
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.09	%			0.10	%			0.10	%			0.14	%			0.14	%
Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate			0.09	%			0.10	%			0.12	%			0.16	%			0.15	%
Ratio of Non-Performing Assets to Total Assets			0.05	%			0.06	%			0.06	%			0.07	%			0.07	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans
and Leases and Commercial Foreclosed Real Estate			0.06	%			0.07	%			0.07	%			0.16	%			0.17	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate			0.11	%			0.13	%			0.15	%			0.16	%			0.14	%
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			0.13	%			0.14	%			0.16	%			0.22	%			0.22	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter		$	13,868			$	15,493			$	19,979			$	18,966			$	20,620
Additions			704				489				2,293				2,243				357
Reductions
Payments			(1,605	)			(706	)			(5,511	)			(1,230	)			(972	)
Return to Accrual Status			(301	)			(116	)			(1,267	)			-				(1,038	)
Sales of Foreclosed Real Estate			-				(1,292	)			-				-				-
Charge-offs / Write-downs			(19	)			-				(1	)			-				(1	)
Total Reductions			(1,925	)			(2,114	)			(6,779	)			(1,230	)			(2,011	)
Balance at End of Quarter		$	12,647			$	13,868			$	15,493			$	19,979			$	18,966

1

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

Bank of Hawai‘i Corporation and Subsidiaries
Reserve for Credit Losses																		Table 12
		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,
(dollars in thousands)		2022				2022				2021				2022				2021
Balance at Beginning of Period		$	152,927			$	154,098			$	174,708			$	164,297			$	221,303
Loans and Leases Charged-Off
Commercial
Commercial and Industrial			(196	)			(147	)			(217	)			(925	)			(1,117	)
Consumer
Residential Mortgage			-				-				-				(80	)			(316	)
Home Equity			(10	)			-				(5	)			(100	)			(417	)
Automobile			(1,171	)			(794	)			(1,045	)			(4,652	)			(4,939	)
Other 1			(1,846	)			(1,924	)			(2,007	)			(7,585	)			(10,530	)
Total Loans and Leases Charged-Off			(3,223	)			(2,865	)			(3,274	)			(13,342	)			(17,319	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial			87				45				132				552				506
Consumer
Residential Mortgage			63				156				858				1,193				2,467
Home Equity			202				367				390				1,500				1,666
Automobile			412				441				476				2,276				3,510
Other 1			604				709				746				2,702				3,205
Total Recoveries on Loans and Leases Previously Charged-Off			1,368				1,718				2,602				8,223				11,354
Net Charged-Off - Loans and Leases			(1,855	)			(1,147	)			(672	)			(5,119	)			(5,965	)
Net Charged-Off - Accrued Interest Receivable			(25	)			-				(39	)			(131	)			(541	)
Provision for Credit Losses:
Loans and Leases			(142	)			(929	)			(9,427	)			(8,263	)			(52,466	)
Accrued Interest Receivable			25				-				(214	)			(283	)			(1,745	)
Unfunded Commitments			317				905				(59	)			746				3,711
Total Provision for Credit Losses			200				(24	)			(9,700	)			(7,800	)			(50,500	)
Balance at End of Period		$	151,247			$	152,927			$	164,297			$	151,247			$	164,297
Components
Allowance for Credit Losses - Loans and Leases		$	144,439			$	146,436			$	157,821			$	144,439			$	157,821
Allowance for Credit Losses - Accrued Interest Receivable			-				-				414				-				414
Reserve for Unfunded Commitments			6,808				6,491				6,062				6,808				6,062
Total Reserve for Credit Losses		$	151,247			$	152,927			$	164,297			$	151,247			$	164,297
Average Loans and Leases Outstanding		$	13,452,791			$	13,126,717			$	12,086,705			$	12,896,510			$	12,023,669
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)			0.05	%			0.03	%			0.02	%			0.04	%			0.05	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 2			1.06	%			1.10	%			1.29	%			1.06	%			1.29	%

1		Comprised of other revolving credit, installment, and lease financing.
2		The numerator comprises the Allowance for Credit Losses - Loans and Leases.

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 December 31, 2022
Net Interest Income (Loss)		$	94,918			$	56,878			$	(11,058	)		$	140,738
Provision for Credit Losses			1,861				(6	)			(1,655	)			200
Net Interest Income (Loss) After Provision for Credit Losses			93,057				56,884				(9,403	)			140,538
Noninterest Income			31,526				8,288				1,358				41,172
Noninterest Expense			(82,383	)			(17,587	)			(2,733	)			(102,703	)
Income (Loss) Before Income Taxes			42,200				47,585				(10,778	)			79,007
Provision for Income Taxes			(10,846	)			(12,005	)			5,151				(17,700	)
Net Income (Loss)		$	31,354			$	35,580			$	(5,627	)		$	61,307
Total Assets as of December 31, 2022		$	8,545,896			$	5,522,916			$	9,538,065			$	23,606,877
Three Months Ended December 31, 2021 1
Net Interest Income		$	71,146			$	48,140			$	7,102			$	126,388
Provision for Credit Losses			676				(4	)			(10,372	)			(9,700	)
Net Interest Income After Provision for Credit Losses			70,470				48,144				17,474				136,088
Noninterest Income			32,948				8,298				1,328				42,574
Noninterest Expense			(81,385	)			(17,127	)			(3,166	)			(101,678	)
Income Before Income Taxes			22,033				39,315				15,636				76,984
Provision for Income Taxes			(5,609	)			(9,436	)			1,898				(13,147	)
Net Income		$	16,424			$	29,879			$	17,534			$	63,837
Total Assets as of December 31, 2021 1		$	7,701,447			$	5,107,001			$	9,976,493			$	22,784,941

1

Certain prior period information has been reclassified to conform to current presentation.

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
Year Ended December 31, 2022 1
Net Interest Income		$	327,940			$	209,272			$	3,346			$	540,558
Provision for Credit Losses			5,324				(205	)			(12,919	)			(7,800	)
Net Interest Income After Provision for Credit Losses			322,616				209,477				16,265				548,358
Noninterest Income			126,336				25,937				5,268				157,541
Noninterest Expense			(330,561	)			(70,601	)			(14,103	)			(415,265	)
Income Before Income Taxes			118,391				164,813				7,430				290,634
Provision for Income Taxes			(29,974	)			(40,659	)			5,803				(64,830	)
Net Income		$	88,417			$	124,154			$	13,233			$	225,804
Total Assets as of December 31, 2022 1		$	8,545,896			$	5,522,916			$	9,538,065			$	23,606,877
Year Ended December 31, 2021 1
Net Interest Income		$	284,597			$	194,409			$	18,284			$	497,290
Provision for Credit Losses			5,764				201				(56,465	)			(50,500	)
Net Interest Income After Provision for Credit Losses			278,833				194,208				74,749				547,790
Noninterest Income			131,292				30,637				9,424				171,353
Noninterest Expense			(304,177	)			(64,470	)			(24,942	)			(393,589	)
Income Before Income Taxes			105,948				160,375				59,231				325,554
Provision for Income Taxes			(26,474	)			(39,070	)			(6,638	)			(72,182	)
Net Income		$	79,474			$	121,305			$	52,593			$	253,372
Total Assets as of December 31, 2021 1		$	7,701,447			$	5,107,001			$	9,976,493			$	22,784,941

1

Certain prior period information has been reclassified to conform to current presentation.

Bank of Hawai‘i Corporation and Subsidiaries
Selected Quarterly Financial Data																		Table 14
		Three Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands, except per share amounts)		2022				2022				2022				2022				2021
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases		$	128,683			$	115,013			$	101,663			$	94,439			$	97,853
Income on Investment Securities
Available-for-Sale			18,476				16,995				17,984				17,100				15,850
Held-to-Maturity			23,708				20,243				18,838				18,701				18,325
Deposits			13				10				5				4				1
Funds Sold			1,093				2,335				719				127				104
Other			340				322				353				202				176
Total Interest Income			172,313				154,918				139,562				130,573				132,309
Interest Expense
Deposits			23,494				10,296				3,535				2,353				2,898
Securities Sold Under Agreements to Repurchase			4,289				2,745				2,794				2,772				2,834
Funds Purchased			318				40				57				2				6
Short-Term Borrowings			1,978				-				92				-				-
Other Debt			1,496				182				182				183				183
Total Interest Expense			31,575				13,263				6,660				5,310				5,921
Net Interest Income			140,738				141,655				132,902				125,263				126,388
Provision for Credit Losses			200				-				(2,500	)			(5,500	)			(9,700	)
Net Interest Income After Provision for Credit Losses			140,538				141,655				135,402				130,763				136,088
Noninterest Income
Trust and Asset Management			10,652				10,418				11,457				11,276				11,693
Mortgage Banking			991				1,002				1,247				2,740				2,908
Service Charges on Deposit Accounts			7,513				7,526				7,309				7,272				6,861
Fees, Exchange, and Other Service Charges			13,906				13,863				14,193				12,952				14,439
Investment Securities Losses, Net			(1,124	)			(2,147	)			(1,295	)			(1,545	)			(1,258	)
Annuity and Insurance			1,087				1,034				870				791				876
Bank-Owned Life Insurance			2,475				2,486				2,658				2,349				1,907
Other			5,672				(3,522	)			5,719				7,716				5,148
Total Noninterest Income			41,172				30,660				42,158				43,551				42,574
Noninterest Expense
Salaries and Benefits			57,639				59,938				57,769				59,924				59,434
Net Occupancy			9,499				10,186				9,930				9,826				9,028
Net Equipment			9,942				9,736				9,543				9,153				9,105
Data Processing			4,579				4,616				4,607				4,560				4,696
Professional Fees			3,958				3,799				3,542				3,258				3,427
FDIC Insurance			1,774				1,680				1,590				1,502				1,619
Other			15,312				15,794				15,958				15,651				14,369
Total Noninterest Expense			102,703				105,749				102,939				103,874				101,678
Income Before Provision for Income Taxes			79,007				66,566				74,621				70,440				76,984
Provision for Income Taxes			17,700				13,765				17,759				15,606				13,147
Net Income		$	61,307			$	52,801			$	56,862			$	54,834			$	63,837
Preferred Stock Dividends			1,969				1,969				1,969				1,969				1,969
Net Income Available to Common Shareholders		$	59,338			$	50,832			$	54,893			$	52,865			$	61,868
Basic Earnings Per Common Share		$	1.51			$	1.28			$	1.38			$	1.33			$	1.56
Diluted Earnings Per Common Share		$	1.50			$	1.28			$	1.38			$	1.32			$	1.55
Balance Sheet Totals
Loans and Leases		$	13,646,420			$	13,321,606			$	12,951,573			$	12,544,492			$	12,259,076
Total Assets			23,606,877				23,134,040				23,232,699				23,000,317				22,784,941
Total Deposits			20,615,696				20,888,773				21,025,681				20,716,287				20,360,108
Total Shareholders' Equity			1,316,995				1,282,384				1,348,746				1,448,885				1,611,611
Performance Ratios
Return on Average Assets			1.05	%			0.91	%			1.00	%			0.97	%			1.12	%
Return on Average Shareholders' Equity			18.91				15.31				16.40				14.18				15.92
Return on Average Common Equity			21.28				16.98				18.19				15.44				17.40
Efficiency Ratio 1			56.46				61.37				58.80				61.53				60.18
Net Interest Margin 2			2.60				2.60				2.47				2.34				2.34

1		Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
2		Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.

Bank of Hawai‘i Corporation and Subsidiaries
Hawaii Economic Trends																			Table 15
		Eleven Months Ended						Year Ended
(dollars in millions; jobs in thousands)		November 30, 2022						December 31, 2021							December 31, 2020
Hawaii Economic Trends
State General Fund Revenues 1		$	8,675.9		16.7	%		$	8,137.9			26.9	%		$	6,415.1			(12.3	)%
General Excise and Use Tax Revenue 1			3,916.3		18.9				3,604.3			18.6				3,038.8			(15.6	)
Jobs 2			652.3						642.6							594.4
												November 31,			December 31,
												2022			2021				2020
Unemployment, seasonally adjusted 3
Statewide												3.3	%			4.3	%		9.8	%
Honolulu County												3.4				4.0			8.8
Hawaii County												3.0				4.2			9.3
Maui County												3.5				5.4			13.9
Kauai County												3.2				6.0			13.6
								December 31,
(1-year percentage change, except months of inventory)								2022				2021			2020				2019
Housing Trends (Single Family Oahu) 4
Median Home Price									11.6	%		19.3	%			5.2	%		(0.1	)%
Home Sales Volume (units)									(23.2	)%		17.9	%			2.3	%		3.9	%
Months of Inventory									2.1			0.8				1.4			2.5
								Monthly Visitor Arrivals,							Percentage Change
(in thousands)								Not Seasonally Adjusted							from Previous Year
Tourism 5
November 30, 2022												725.5							18.2	%
October 31, 2022												726.1							31.8
September 30, 2022												691.8							37.1
August 31, 2022												829.7							14.8
July 31, 2022												919.2							4.5
June 30, 2022												841.8							6.4
May 31, 2022												774.1							22.9
April 30, 2022												809.6							67.3
March 31, 2022												785.7							78.7
February 28, 2022												623.7							165.1
January 31, 2022												567.2							229.8
December 31,2021												753.7							219.6
November 30, 2021												614.0							234.1
October 31, 2021												550.8							618.2
September 30, 2021												504.6							2,641.0
August 31, 2021												723.0							2,995.6
July 31, 2021												879.6							3,798.4
June 30, 2021												791.1							4,534.7
May 31, 2021												629.7							6,807.4
April 30, 2021												484.1							10,506.3
March 31, 2021												439.8							1.1
February 28, 2021												235.3							(71.6	)
January 31, 2021												172.0							(80.1	)

1		Source: Hawaii Department of Business, Economic Development & Tourism
2		Source: U.S. Bureau of Labor Statistics
3		Source: University of Hawaii Economic Research Organization (UHERO)
4		Source: Honolulu Board of Realtors
5		Source: Hawaii Tourism Authority

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230123005176/en/

Media Inquiries

Melissa Torres-Laing

Email: Melissa.Torres-Laing@boh.com

Telephone: 808-694-8384

Mobile: 808-859-1703

Investor/Analyst Inquiries

Jennifer Lam

Email: Jennifer.Lam@boh.com

Telephone: 808-694-8121

Source: Bank of Hawai‘i Corporation

FAQ

What were Bank of Hawai‘i's earnings for 2022?

For 2022, Bank of Hawai‘i reported diluted earnings per common share of $5.48, down from $6.25 in 2021.

What is the net income for the fourth quarter of 2022 for BOH?

Bank of Hawai‘i's net income for Q4 2022 was $61.3 million, an increase of 16.1% from Q3 2022.

What is the dividend declared by Bank of Hawai‘i?

Bank of Hawai‘i declared a quarterly cash dividend of $0.70 per common share, payable on March 14, 2023.

How much did total loans and leases increase for BOH in 2022?

Total loans and leases for Bank of Hawai‘i increased by 11.3% year-over-year to $13.6 billion as of December 31, 2022.

What is the Tier 1 Capital Ratio for Bank of Hawai‘i as of December 31, 2022?

The Tier 1 Capital Ratio for Bank of Hawai‘i was 12.15% as of December 31, 2022, down from 13.56% a year earlier.