Bank of Hawai‘i Corporation Second Quarter 2023 Financial Results

Rhea-AI Summary

Bank of Hawai‘i Corporation reports diluted earnings per common share of $1.12 for Q2 2023, down from $1.14 in Q1 2023 and $1.38 in Q2 2022. Net income for Q2 2023 was $46.1 million, down 1.7% from Q1 2023 and down 19.0% from Q2 2022. Total deposits increased by 0.1% from the previous quarter. Board of Directors declares dividend of $0.70 per common share.

Positive

• Bank of Hawai‘i delivered solid financial results in Q2 2023. Total deposits increased by 0.1% from the previous quarter. Loans grew 0.7% with growth coming from both consumer and commercial businesses. Non-performing assets decreased by $0.6 million from the previous quarter. Capital levels remain well above regulatory well-capitalized minimums.

Negative

• Diluted earnings per common share decreased from the previous quarter and the same quarter of the previous year. Net income decreased from the previous quarter and the same quarter of the previous year. Noninterest income decreased from the same period in 2022. Total deposits decreased from the same quarter of the previous year.

• Diluted Earnings Per Common Share $1.12
• Net Income $46.1 Million
• Total Deposits Up 0.1% Linked Quarter
• Immediately Available Liquidity Increased to $8.5 Billion
• 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 $1.12 for the second quarter of 2023, compared with diluted earnings per common share of $1.14 in the previous quarter and $1.38 in the same quarter of 2022. Net income for the second quarter of 2023 was $46.1 million, down 1.7% from the previous quarter and down 19.0% from the same quarter of 2022. The return on average common equity for the second quarter of 2023 was 14.95% compared with 15.79% in the previous quarter and 18.19% in the same quarter of 2022.

“Bank of Hawai‘i delivered solid financial results in the second quarter of 2023,” said Peter Ho, Chairman, President, and CEO. “Our brand strength, built through 125 years of building lasting and long-standing relationships with the consumers, businesses and municipalities of Hawai‘i, helped us deliver yet another quarter of stable deposit performance. Total deposits were up modestly from a quarter ago. We also added additional liquidity to the balance sheet with cash and other immediately available borrowing lines growing to $8.5 billion at quarter end. Loans grew 0.7% with growth coming from both our consumer and commercial businesses. Credit quality remained pristine with non-performing assets of 0.08% at quarter end and net charge offs of 0.04% in the quarter. CRE loans and office CRE loans were 27.3% and 2.7% of total loans at quarter end with both categories having weighted average LTVs of 56%. Scheduled maturities for CRE loans and office CRE loans total 10% and 3% respectively through 2024. Finally, our capital position improved in the quarter, as measured by CET 1, Tier 1 Capital, Total Capital and Tier 1 Leverage.”

Financial Highlights

Net interest income for the second quarter of 2023 was $124.3 million, a decrease of 8.5% from the previous quarter and a decrease of 6.4% from the same quarter of 2022. The decrease in net interest income in the second quarter of 2023 was primarily due to higher funding costs, partially offset by higher earning asset yields.

Net interest margin was 2.22% in the second quarter of 2023, a decrease of 25 basis points from the previous quarter and from the same quarter of 2022. The decrease in net interest margin was due to higher funding costs and increased liquidity, partially offset by higher earning asset yields.

The average yield on loans and leases was 4.19% in the second quarter of 2023, up 16 basis points from the prior quarter and up 98 basis points from the same quarter of 2022. The average yield on total earning assets was 3.56% in the second quarter of 2023, up 14 basis points from the prior quarter and up 96 basis points from the same quarter of 2022. The average cost of interest-bearing deposits was 1.54% in the second quarter of 2023, up 45 basis points from the prior quarter and up 143 basis points from the same quarter of 2022. The average cost of total deposits, including noninterest-bearing deposits, was 1.08%, up 33 basis points from the prior quarter and up 101 basis points from the same quarter of 2022. The changes in yields and rates over the linked quarter and year over year period reflected the higher rate environment, including higher benchmark interest rates.

Noninterest income was $43.3 million in the second quarter of 2023, an increase of 6.2% from the previous quarter and an increase of 2.6% from the same period in 2022. Noninterest income in the second quarter of 2023 included $1.5 million from the sale of a low-income housing tax credit investment, while noninterest income in the first quarter of 2023 included a negative adjustment of $0.6 million related to a change in the Visa Class B conversion ratio. Adjusted noninterest income in the second quarter of 2023 was $41.7 million, up 1.0% from adjusted noninterest income in the prior quarter and down 1.0% from the same period in 2022.

Noninterest expense was $104.0 million in the second quarter of 2023, a decrease of 7.0% from the previous quarter and an increase of 1.1% from the same quarter of 2022. Noninterest expense in the first quarter of 2023 included seasonal payroll expenses of approximately $4.0 million and separation expenses of $3.1 million. Adjusted for these items in the prior quarter, noninterest expense decreased by 0.8% quarter over quarter.

The effective tax rate for the second quarter of 2023 was 24.57% compared with 25.38% in the previous quarter and 23.80% during the same quarter of 2022. The decrease in the effective tax rate on a linked quarter basis was mainly due to an unfavorable discrete tax item in the first quarter and an increase in benefits from tax credit investments in the current quarter. The year over year increase was primarily due to lower benefits from tax credit investments and benefits from leveraged leases that have since been terminated which were included in the effective tax rate for the second quarter of 2022.

Asset Quality

The Company’s overall asset quality remained strong during the second quarter of 2023. Provision for credit losses for the second quarter of 2023 was $2.5 million compared with $2.0 million in the previous quarter and a net benefit of $2.5 million in the same quarter of 2022.

Total non-performing assets were $11.5 million at June 30, 2023, down $0.6 million from March 31, 2023 and down $4.0 million from June 30, 2022. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.08% at the end of the quarter, a decrease of 1 basis point from the end of the prior quarter and a decrease of 4 basis points from the same quarter of 2022.

Net loan and lease charge-offs during the second quarter of 2023 were $1.4 million or 4 basis points annualized of total average loans and leases outstanding. Net loan and lease charge-offs for the second quarter of 2023 were comprised of charge-offs of $3.5 million partially offset by recoveries of $2.1 million. Compared to the prior quarter, net loan and lease charge-offs decreased by $1.3 million or 4 basis points annualized on total average loans and leases outstanding. Compared to the same quarter of 2022, net loan and lease charge-offs increased by $0.7 million or 2 basis points annualized on total average loans and leases outstanding.

The allowance for credit losses on loans and leases was $145.4 million at June 30, 2023, an increase of $1.8 million from March 31, 2023 and a decrease of $3.1 million from June 30, 2022. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.04% at the end of the quarter, flat from the end of the prior quarter and down 10 basis points from the end of the same quarter of 2022.

Balance Sheet

Total assets were $24.9 billion at June 30, 2023, an increase of 4.2% from March 31, 2023 and an increase of 7.4% from June 30, 2022, primarily due to growth in our earning assets.

Total funds sold and cash and due from banks was $1.7 billion at June 30, 2023, an increase of $1.1 billion from March 31, 2023 and $0.8 billion from June 30, 2022 and represented 6.7% of total assets. The growth was due to an increase in short-duration term funding of $1.3 billion that enhanced on balance sheet liquidity and provides a hedge against rising short-term rates.

The investment securities portfolio was $7.9 billion at June 30, 2023, a decrease of 3.2% from March 31, 2023 and a decrease of 4.9% from June 30, 2022. These decreases were due to cashflows from the portfolio not being reinvested into securities. 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 June 30, 2023, an increase of 0.7% from March 31, 2023 and an increase of 7.4% from June 30, 2022. Total commercial loans were $5.6 billion at June 30, 2023, an increase of 0.8% from the prior quarter and an increase of 8.9% from the same quarter of 2022. The increase from the same period in 2022 was primarily due to an increase in our commercial mortgage and commercial and industrial portfolios. Total consumer loans were $8.3 billion as of June 30, 2023, an increase of 0.5% from the prior quarter and 6.5% from the same period in 2022, primarily driven by increases in our residential mortgage and home equity portfolios.

Total deposits were $20.5 billion at June 30, 2023, an increase of 0.1% from March 31, 2023 and a decrease of 2.5% from June 30, 2022. Noninterest-bearing deposits made up 29% of total deposit balances as of June 30, 2023, down from 31% as of March 31, 2023 and 35% as of June 30, 2022. Average deposits were $20.0 billion for the second quarter of 2023, down 2.0% from $20.4 billion in the prior quarter, and down 2.7% from the second quarter of 2022. As of June 30, 2023 insured and collateralized deposits represent 61% of total deposit balances, up from 58% as of March 31, 2023 and 57% as of June 30, 2022.

Capital and Dividends

The Company’s capital levels remain well above regulatory well-capitalized minimums.

The Tier 1 Capital Ratio was 12.21% at June 30, 2023 compared with 12.10% at March 31, 2023 and 13.01% at June 30, 2022. The Tier 1 Leverage Ratio was 7.21% at June 30, 2023 compared with 7.19% at March 31, 2023 and 7.29% at June 30, 2022. The increase from the prior quarter was due to an increase in Tier 1 capital as a result of retained earnings growth partially offset by an increase in risk-weighted and average total assets, as a result of loan growth and increased liquidity over the period. The decrease from the same period in 2022 in the Tier 1 Capital Ratio was due to an increase in risk-weighted assets, and the decline in the Tier 1 Leverage Ratio was due to an increase in average total assets, both as a result of increased liquidity and loan growth over the period.

No shares of common stock were repurchased under the share repurchase program in the second quarter of 2023. Total remaining buyback authority under the share repurchase program was $126.0 million at June 30, 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 September 15, 2023 to shareholders of record at the close of business on August 31, 2023.

On July 7, 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 August 1, 2023 to shareholders of record of the preferred stock as of the close of business on July 17, 2023.

Conference Call Information

The Company will review its second quarter financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawai‘i Corporation's website, www.boh.com. The webcast can be accessed via the link: https://register.vevent.com/register/BIa86de171556d47818c0a5a7106c5f8bd. A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawaii Time on Monday, July 24, 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, 2022 and its Form 10-Q for the fiscal quarter ended March 31, 2023, 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												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
(dollars in thousands, except per share amounts)		2023				2023				2022				2023				2022
For the Period:
Operating Results
Net Interest Income		$	124,348			$	135,955			$	132,902			$	260,303			$	258,165
Provision for Credit Losses			2,500				2,000				(2,500	)			4,500				(8,000	)
Total Noninterest Income			43,255				40,737				42,158				83,992				85,709
Total Noninterest Expense			104,036				111,919				102,939				215,955				206,813
Pre-Provision Net Revenue			63,567				64,773				72,121				128,340				137,061
Net Income			46,061				46,842				56,862				92,903				111,696
Net Income Available to Common Shareholders			44,092				44,873				54,893				88,965				107,758
Basic Earnings Per Common Share			1.12				1.14				1.38				2.27				2.71
Diluted Earnings Per Common Share			1.12				1.14				1.38				2.26				2.70
Dividends Declared Per Common Share			0.70				0.70				0.70				1.40				1.40
Performance Ratios
Return on Average Assets			0.77	%			0.80	%			1.00	%			0.78	%			0.98	%
Return on Average Shareholders' Equity			13.55				14.25				16.40				13.90				15.23
Return on Average Common Equity			14.95				15.79				18.19				15.36				16.73
Efficiency Ratio 1			62.07				63.34				58.80				62.72				60.14
Net Interest Margin 2			2.22				2.47				2.47				2.34				2.41
Dividend Payout Ratio 3			62.50				61.40				50.72				61.67				51.66
Average Shareholders' Equity to Average Assets			5.65				5.59				6.08				5.62				6.47
Average Balances
Average Loans and Leases		$	13,876,754			$	13,717,483			$	12,700,825			$	13,797,559			$	12,496,747
Average Assets			24,114,443				23,865,478				22,891,262				23,990,649				22,869,496
Average Deposits			20,018,601				20,430,882				20,569,363				20,223,603				20,498,115
Average Shareholders' Equity			1,363,059				1,332,889				1,390,653				1,348,057				1,479,197
Per Share of Common Stock
Book Value		$	29.66			$	29.62			$	29.09			$	29.66			$	29.09
Tangible Book Value			28.87				28.83				28.30				28.87				28.30
Market Value
Closing			41.23				52.08				74.40				41.23				74.40
High			52.37				81.73				84.93				81.73				92.38
Low			30.83				34.71				70.97				30.83				70.97
						June 30,				March 31,				December 31,				June 30,
						2023				2023				2022				2022
As of Period End:
Balance Sheet Totals
Loans and Leases						$	13,914,889			$	13,824,522			$	13,646,420			$	12,951,573
Total Assets							24,947,936				23,931,977				23,606,877				23,232,699
Total Deposits							20,508,615				20,491,300				20,615,696				21,025,681
Other Debt							1,760,243				510,269				410,294				10,343
Total Shareholders' Equity							1,358,279				1,354,430				1,316,995				1,348,746
Asset Quality
Non-Performing Assets						$	11,477			$	12,124			$	12,647			$	15,493
Allowance for Credit Losses - Loans and Leases							145,367				143,577				144,439				148,512
Allowance to Loans and Leases Outstanding 4							1.04	%			1.04	%			1.06	%			1.15	%
Capital Ratios 5
Common Equity Tier 1 Capital Ratio							11.00	%			10.88	%			10.92	%			11.66	%
Tier 1 Capital Ratio							12.21				12.10				12.15				13.01
Total Capital Ratio							13.24				13.13				13.17				14.14
Tier 1 Leverage Ratio							7.21				7.19				7.37				7.29
Total Shareholders' Equity to Total Assets							5.44				5.66				5.58				5.81
Tangible Common Equity to Tangible Assets 6							4.60				4.78				4.69				4.90
Tangible Common Equity to Risk-Weighted Assets 6							7.97				7.97				7.76				8.72
Non-Financial Data
Full-Time Equivalent Employees							2,025				2,025				2,076				2,114
Branches							51				51				51				54
ATMs							320				320				320				310

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 June 30, 2023 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
		June 30,				March 31,				December 31,				June 30,
(dollars in thousands)		2023				2023				2022				2022
Total Shareholders' Equity		$	1,358,279			$	1,354,430			$	1,316,995			$	1,348,746
Less: Preferred Stock			180,000				180,000				180,000				180,000
Goodwill			31,517				31,517				31,517				31,517
Tangible Common Equity		$	1,146,762			$	1,142,913			$	1,105,478			$	1,137,229
Total Assets		$	24,947,936			$	23,931,977			$	23,606,877			$	23,232,699
Less: Goodwill			31,517				31,517				31,517				31,517
Tangible Assets		$	24,916,419			$	23,900,460			$	23,575,360			$	23,201,182
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements 1		$	14,391,943			$	14,341,397			$	14,238,798			$	13,035,674
Total Shareholders' Equity to Total Assets			5.44	%			5.66	%			5.58	%			5.81	%
Tangible Common Equity to Tangible Assets (Non-GAAP)			4.60	%			4.78	%			4.69	%			4.90	%
Tier 1 Capital Ratio 1			12.21	%			12.10	%			12.15	%			13.01	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1			7.97	%			7.97	%			7.76	%			8.72	%

1		Regulatory capital ratios as of June 30, 2023 are preliminary.

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Income														Table 3
		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
(dollars in thousands, except per share amounts)		2023				2023				2022				2023				2022
Interest Income
Interest and Fees on Loans and Leases		$	144,541			$	136,501			$	101,663			$	281,042			$	196,102
Income on Investment Securities
Available-for-Sale			23,301				23,893				17,984				47,194				35,084
Held-to-Maturity			23,375				23,948				18,838				47,323				37,539
Deposits			18				27				5				45				9
Funds Sold			6,395				3,366				719				9,761				846
Other			2,121				597				353				2,718				555
Total Interest Income			199,751				188,332				139,562				388,083				270,135
Interest Expense
Deposits			53,779				37,794				3,535				91,573				5,888
Securities Sold Under Agreements to Repurchase			5,436				5,377				2,794				10,813				5,566
Funds Purchased			184				704				57				888				59
Short-Term Borrowings			2,510				3,203				92				5,713				92
Other Debt			13,494				5,299				182				18,793				365
Total Interest Expense			75,403				52,377				6,660				127,780				11,970
Net Interest Income			124,348				135,955				132,902				260,303				258,165
Provision for Credit Losses			2,500				2,000				(2,500	)			4,500				(8,000	)
Net Interest Income After Provision for Credit Losses			121,848				133,955				135,402				255,803				266,165
Noninterest Income
Trust and Asset Management			11,215				10,690				11,457				21,905				22,733
Mortgage Banking			1,176				1,004				1,247				2,180				3,987
Service Charges on Deposit Accounts			7,587				7,737				7,309				15,324				14,581
Fees, Exchange, and Other Service Charges			14,150				13,808				14,193				27,958				27,145
Investment Securities Losses, Net			(1,310	)			(1,792	)			(1,295	)			(3,102	)			(2,840	)
Annuity and Insurance			1,038				1,271				870				2,309				1,661
Bank-Owned Life Insurance			2,876				2,842				2,658				5,718				5,007
Other			6,523				5,177				5,719				11,700				13,435
Total Noninterest Income			43,255				40,737				42,158				83,992				85,709
Noninterest Expense
Salaries and Benefits			56,175				65,088				57,769				121,263				117,693
Net Occupancy			9,991				9,872				9,930				19,863				19,756
Net Equipment			10,573				10,375				9,543				20,948				18,696
Data Processing			4,599				4,583				4,607				9,182				9,167
Professional Fees			4,651				3,883				3,542				8,534				6,800
FDIC Insurance			3,173				3,234				1,590				6,407				3,092
Other			14,874				14,884				15,958				29,758				31,609
Total Noninterest Expense			104,036				111,919				102,939				215,955				206,813
Income Before Provision for Income Taxes			61,067				62,773				74,621				123,840				145,061
Provision for Income Taxes			15,006				15,931				17,759				30,937				33,365
Net Income		$	46,061			$	46,842			$	56,862			$	92,903			$	111,696
Preferred Stock Dividends			1,969				1,969				1,969				3,938				3,938
Net Income Available to Common Shareholders		$	44,092			$	44,873			$	54,893			$	88,965			$	107,758
Basic Earnings Per Common Share		$	1.12			$	1.14			$	1.38			$	2.27			$	2.71
Diluted Earnings Per Common Share		$	1.12			$	1.14			$	1.38			$	2.26			$	2.70
Dividends Declared Per Common Share		$	0.70			$	0.70			$	0.70			$	1.40			$	1.40
Basic Weighted Average Common Shares			39,241,559				39,276,833				39,693,593				39,259,279				39,722,985
Diluted Weighted Average Common Shares			39,317,521				39,465,889				39,842,608				39,382,359				39,896,700

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)														Table 4
		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
(dollars in thousands)		2023				2023				2022				2023				2022
Net Income		$	46,061			$	46,842			$	56,862			$	92,903			$	111,696
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities			(18,217	)			29,276				(122,647	)			11,059				(302,771	)
Defined Benefit Plans			84				84				352				168				705
Other Comprehensive Income (Loss)			(18,133	)			29,360				(122,295	)			11,227				(302,066	)
Comprehensive Income (Loss)		$	27,928			$	76,202			$	(65,433	)		$	104,130			$	(190,370	)

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
		June 30,				March 31,				December 31,				June 30,
(dollars in thousands)		2023				2023				2022				2022
Assets
Interest-Bearing Deposits in Other Banks		$	2,261			$	2,554			$	3,724			$	2,264
Funds Sold			1,273,109				272,018				81,364				576,430
Investment Securities
Available-for-Sale			2,666,723				2,815,083				2,844,823				3,955,476
Held-to-Maturity (Fair Value of $4,411,003; $4,601,876; $4,615,393; and $3,823,739)			5,202,698				5,312,815				5,414,139				4,321,693
Loans Held for Sale			3,359				2,149				1,035				4,514
Loans and Leases			13,914,889				13,824,522				13,646,420				12,951,573
Allowance for Credit Losses			(145,367	)			(143,577	)			(144,439	)			(148,512	)
Net Loans and Leases			13,769,522				13,680,945				13,501,981				12,803,061
Total Earning Assets			22,917,672				22,085,564				21,847,066				21,663,438
Cash and Due from Banks			398,072				337,413				316,679				260,672
Premises and Equipment, Net			200,297				203,131				206,777				202,063
Operating Lease Right-of-Use Assets			89,286				91,387				92,307				91,901
Accrued Interest Receivable			64,720				63,175				61,002				47,141
Foreclosed Real Estate			1,040				1,040				1,040				2,332
Mortgage Servicing Rights			21,626				22,102				22,619				23,540
Goodwill			31,517				31,517				31,517				31,517
Bank-Owned Life Insurance			456,889				455,602				453,882				448,925
Other Assets			766,817				641,046				573,988				461,170
Total Assets		$	24,947,936			$	23,931,977			$	23,606,877			$	23,232,699
Liabilities
Deposits
Noninterest-Bearing Demand		$	5,968,344			$	6,385,872			$	6,714,982			$	7,374,055
Interest-Bearing Demand			4,119,166				4,283,801				4,232,567				4,339,520
Savings			7,756,426				7,898,874				7,962,410				8,054,899
Time			2,664,679				1,922,753				1,705,737				1,257,207
Total Deposits			20,508,615				20,491,300				20,615,696				21,025,681
Short-Term Borrowings			-				325,000				-				-
Securities Sold Under Agreements to Repurchase			725,490				725,490				725,490				425,490
Other Debt			1,760,243				510,269				410,294				10,343
Operating Lease Liabilities			97,768				99,746				100,526				99,722
Retirement Benefits Payable			26,434				26,768				26,991				37,532
Accrued Interest Payable			26,737				13,061				9,698				2,545
Taxes Payable			132				11,039				7,104				10,607
Other Liabilities			444,238				374,874				394,083				272,033
Total Liabilities			23,589,657				22,577,547				22,289,882				21,883,953
Shareholders' Equity
Preferred Stock ($.01 par value; authorized 180,000 shares; issued / outstanding: June 30, 2023; March 31, 2023; December 31, 2022; and June 30, 2022 - 180,000)			180,000				180,000				180,000				180,000
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2023 - 58,771,036 / 39,725,348; March 31, 2023 - 58,722,929 / 39,646,506; December 31, 2022 - 58,733,625 / 39,835,750; and June 30, 2022 - 58,727,909 / 40,182,659)			583				583				582				582
Capital Surplus			628,202				624,126				620,578				611,694
Accumulated Other Comprehensive Loss			(423,431	)			(405,298	)			(434,658	)			(368,448	)
Retained Earnings			2,091,289				2,074,428				2,055,912				2,002,005
Treasury Stock, at Cost (Shares: June 30, 2023 - 19,045,688; March 31, 2023 - 19,076,423; December 31, 2022 - 18,897,875; and June 30, 2022 - 18,545,250)			(1,118,364	)			(1,119,409	)			(1,105,419	)			(1,077,087	)
Total Shareholders' Equity			1,358,279				1,354,430				1,316,995				1,348,746
Total Liabilities and Shareholders' Equity		$	24,947,936			$	23,931,977			$	23,606,877			$	23,232,699

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, 2022		180,000		$	180,000		39,835,750			$	582		$	620,578			$	(434,658	)		$	2,055,912			$	(1,105,419	)		$	1,316,995
Net Income		-			-		-				-			-				-				92,903				-				92,903
Other Comprehensive Income		-			-		-				-			-				11,227				-				-				11,227
Share-Based Compensation		-			-		-				-			7,672				-				-				-				7,672
Common Stock Issued under Purchase and Equity Compensation Plans		-			-		94,765				1			(48	)			-				2,286				986				3,225
Common Stock Repurchased		-			-		(205,167	)			-			-				-				-				(13,931	)			(13,931	)
Cash Dividends Declared Common Stock ($1.40 per share)		-			-		-				-			-				-				(55,874	)			-				(55,874	)
Cash Dividends Declared Preferred Stock		-			-		-				-			-				-				(3,938	)			-				(3,938	)
Balance as of June 30, 2023		180,000		$	180,000		39,725,348			$	583		$	628,202			$	(423,431	)		$	2,091,289			$	(1,118,364	)		$	1,358,279
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		-			-		-				-			-				-				111,696				-				111,696
Other Comprehensive Loss		-			-		-				-			-				(302,066	)			-				-				(302,066	)
Share-Based Compensation		-			-		-				-			8,172				-				-				-				8,172
Common Stock Issued under Purchase and Equity Compensation Plans		-			-		228,225				1			1,014				-				346				2,697				4,058
Common Stock Repurchased		-			-		(298,759	)			-			-				-				-				(24,313	)			(24,313	)
Cash Dividends Declared Common Stock ($1.40 per share)		-			-		-				-			-				-				(56,474	)			-				(56,474	)
Cash Dividends Declared Preferred Stock		-			-		-				-			-				-				(3,938	)			-				(3,938	)
Balance as of June 30, 2022		180,000		$	180,000		40,182,659			$	582		$	611,694			$	(368,448	)		$	2,002,005			$	(1,077,087	)		$	1,348,746

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
		June 30, 2023									March 31, 2023									June 30, 2022
		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		$	5.1		$	-		1.48	%		$	1.7		$	-		6.25	%		$	3.5		$	-		0.59	%
Funds Sold			500.1			6.4		5.06				295.9			3.4		4.55				273.5			0.7		1.04
Investment Securities
Available-for-Sale
Taxable			2,741.1			23.2		3.39				2,820.3			23.8		3.40				4,123.1			18.0		1.74
Non-Taxable			9.6			0.1		4.40				9.6			0.1		4.38				2.9			-		1.99
Held-to-Maturity
Taxable			5,231.3			23.2		1.78				5,336.2			23.8		1.78				4,377.0			18.7		1.71
Non-Taxable			35.2			0.2		2.10				35.3			0.2		2.10				35.7			0.2		2.10
Total Investment Securities			8,017.2			46.7		2.33				8,201.4			47.9		2.34				8,538.7			36.9		1.73
Loans Held for Sale			2.7			-		5.50				1.5			-		5.30				6.3			0.1		4.06
Loans and Leases 3
Commercial and Industrial			1,456.1			17.5		4.82				1,411.4			16.2		4.67				1,330.0			9.9		2.99
Paycheck Protection Program			14.5			-		1.30				16.9			0.1		2.35				38.7			0.5		5.26
Commercial Mortgage			3,814.9			49.3		5.19				3,736.9			45.1		4.90				3,357.2			26.2		3.13
Construction			246.8			3.5		5.70				280.4			3.9		5.65				222.6			2.4		4.39
Commercial Lease Financing			65.4			0.3		1.67				66.9			-		(0.14	)			94.2			0.3		1.44
Residential Mortgage			4,704.0			41.2		3.50				4,666.0			39.9		3.42				4,445.7			36.4		3.26
Home Equity			2,272.3			19.0		3.35				2,239.4			18.2		3.30				2,032.9			14.4		2.85
Automobile			879.3			7.7		3.53				871.8			7.3		3.37				759.1			6.1		3.20
Other 4			423.5			6.4		6.04				427.8			6.2		5.83				420.4			5.6		5.38
Total Loans and Leases			13,876.8			144.9		4.19				13,717.5			136.9		4.03				12,700.8			101.8		3.21
Other			94.8			2.2		8.94				67.2			0.6		3.56				38.2			0.3		3.70
Total Earning Assets			22,496.7			200.2		3.56				22,285.2			188.8		3.42				21,561.0			139.8		2.60
Cash and Due from Banks			316.6									319.1									238.4
Other Assets			1,301.1									1,261.2									1,091.9
Total Assets		$	24,114.4								$	23,865.5								$	22,891.3
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand		$	4,037.4			7.5		0.75			$	4,215.9			5.2		0.50			$	4,442.2			0.7		0.06
Savings			7,667.6			26.6		1.39				8,009.0			20.6		1.05				7,692.8			1.9		0.10
Time			2,296.1			19.7		3.44				1,789.9			12.0		2.71				950.4			0.9		0.40
Total Interest-Bearing Deposits			14,001.1			53.8		1.54				14,014.8			37.8		1.09				13,085.4			3.5		0.11
Funds Purchased			14.6			0.2		5.00				60.4			0.7		4.66				25.3			-		0.89
Short-Term Borrowings			195.2			2.5		5.09				265.0			3.2		4.84				34.5			0.1		1.06
Securities Sold Under Agreements to Repurchase			725.5			5.4		2.96				725.5			5.4		2.96				447.7			2.8		2.47
Other Debt			1,255.8			13.5		4.31				499.6			5.3		4.30				10.4			0.3		7.05
Total Interest-Bearing Liabilities			16,192.2			75.4		1.87				15,565.3			52.4		1.36				13,603.3			6.7		0.20
Net Interest Income					$	124.8								$	136.4								$	133.1
Interest Rate Spread								1.69	%								2.06	%								2.40	%
Net Interest Margin								2.22	%								2.47	%								2.47	%
Noninterest-Bearing Demand Deposits			6,017.5									6,416.1									7,484.0
Other Liabilities			541.6									551.2									413.3
Shareholders' Equity			1,363.1									1,332.9									1,390.7
Total Liabilities and Shareholders' Equity		$	24,114.4								$	23,865.5								$	22,891.3

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 $471,000, $495,000, and $221,000 for the three months ended June 30, 2023, March 31, 2023, and June 30, 2022, 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
		Six Months Ended									Six Months Ended
		June 30, 2023									June 30, 2022
		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		$	3.4		$	-		2.68	%		$	3.5		$	-		0.52	%
Funds Sold			398.6			9.8		4.87				256.1			0.8		0.66
Investment Securities
Available-for-Sale
Taxable			2,780.4			47.0		3.40				4,260.6			35.1		1.65
Non-Taxable			9.6			0.2		4.39				3.0			-		1.96
Held-to-Maturity
Taxable			5,283.6			47.0		1.78				4,471.7			37.2		1.67
Non-Taxable			35.2			0.4		2.10				35.8			0.4		2.10
Total Investment Securities			8,108.8			94.6		2.34				8,771.1			72.7		1.66
Loans Held for Sale			2.1			0.1		5.42				10.0			0.2		3.19
Loans and Leases 3
Commercial and Industrial			1,433.8			33.8		4.75				1,331.5			18.9		2.86
Paycheck Protection Program			15.7			0.1		1.86				63.7			2.3		7.39
Commercial Mortgage			3,776.2			94.5		5.04				3,258.5			48.0		2.97
Construction			263.5			7.4		5.68				225.1			4.5		4.03
Commercial Lease Financing			66.1			0.3		0.76				96.5			0.7		1.44
Residential Mortgage			4,685.2			81.0		3.46				4,394.8			71.2		3.24
Home Equity			2,255.9			37.2		3.33				1,966.3			27.7		2.84
Automobile			875.6			15.0		3.45				748.3			11.9		3.22
Other 4			425.6			12.5		5.94				412.1			11.1		5.42
Total Loans and Leases			13,797.6			281.8		4.11				12,496.8			196.3		3.16
Other			81.0			2.7		6.70				37.3			0.6		2.97
Total Earning Assets			22,391.5			389.0		3.49				21,574.8			270.6		2.52
Cash and Due from Banks			317.8									235.8
Other Assets			1,281.3									1,058.9
Total Assets		$	23,990.6								$	22,869.5
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand		$	4,126.2			12.7		0.62			$	4,548.2			1.2		0.05
Savings			7,837.3			47.2		1.21				7,617.1			2.9		0.08
Time			2,044.4			31.7		3.12				960.9			1.8		0.37
Total Interest-Bearing Deposits			14,007.9			91.6		1.32				13,126.2			5.9		0.09
Funds Purchased			37.4			0.9		4.72				16.2			0.1		0.72
Short-Term Borrowings			229.9			5.7		4.94				17.3			0.1		1.06
Securities Sold Under Agreements to Repurchase			725.5			10.8		2.96				449.1			5.6		2.47
Other Debt			879.8			18.7		4.31				10.4			0.3		7.05
Total Interest-Bearing Liabilities			15,880.5			127.7		1.62				13,619.2			12.0		0.18
Net Interest Income					$	261.3								$	258.6
Interest Rate Spread								1.87	%								2.34	%
Net Interest Margin								2.34	%								2.41	%
Noninterest-Bearing Demand Deposits			6,215.7									7,371.9
Other Liabilities			546.3									399.2
Shareholders' Equity			1,348.1									1,479.2
Total Liabilities and Shareholders' Equity		$	23,990.6								$	22,869.5

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 $966,000 and $475,000 for the six months ended June 30, 2023 and June 30, 2022, 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 June 30, 2023
		Compared to March 31, 2023
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	2.6			$	0.4			$	3.0
Investment Securities
Available-for-Sale
Taxable			(0.6	)			-				(0.6	)
Held-to-Maturity
Taxable			(0.5	)			(0.1	)			(0.6	)
Total Investment Securities			(1.1	)			(0.1	)			(1.2	)
Loans and Leases
Commercial and Industrial			0.7				0.6				1.3
Paycheck Protection Program			(0.1	)			-				(0.1	)
Commercial Mortgage			1.1				3.1				4.2
Construction			(0.4	)			-				(0.4	)
Commercial Lease Financing			-				0.3				0.3
Residential Mortgage			0.3				1.0				1.3
Home Equity			0.4				0.4				0.8
Automobile			0.1				0.3				0.4
Other 2			(0.1	)			0.3				0.2
Total Loans and Leases			2.0				6.0				8.0
Other			0.4				1.2				1.6
Total Change in Interest Income			3.9				7.5				11.4
Change in Interest Expense:
Interest-Bearing Deposits
Demand			(0.2	)			2.5				2.3
Savings			(0.9	)			6.9				6.0
Time			3.9				3.8				7.7
Total Interest-Bearing Deposits			2.8				13.2				16.0
Funds Purchased			(0.5	)			-				(0.5	)
Short-Term Borrowings			(0.9	)			0.2				(0.7	)
Other Debt			8.2				-				8.2
Total Change in Interest Expense			9.6				13.4				23.0
Change in Net Interest Income		$	(5.7	)		$	(5.9	)		$	(11.6	)

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 June 30, 2023
		Compared to June 30, 2022
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	1.0			$	4.7			$	5.7
Investment Securities
Available-for-Sale
Taxable			(7.6	)			12.8				5.2
Non-Taxable			0.1				-				0.1
Held-to-Maturity
Taxable			3.7				0.8				4.5
Total Investment Securities			(3.8	)			13.6				9.8
Loans Held for Sale			(0.1	)			-				(0.1	)
Loans and Leases
Commercial and Industrial			1.0				6.6				7.6
Paycheck Protection Program			(0.2	)			(0.3	)			(0.5	)
Commercial Mortgage			4.0				19.1				23.1
Construction			0.3				0.8				1.1
Commercial Lease Financing			(0.1	)			0.1				-
Residential Mortgage			2.2				2.6				4.8
Home Equity			1.8				2.8				4.6
Automobile			1.0				0.6				1.6
Other 2			-				0.8				0.8
Total Loans and Leases			10.0				33.1				43.1
Other			1.0				0.9				1.9
Total Change in Interest Income			8.1				52.3				60.4
Change in Interest Expense:
Interest-Bearing Deposits
Demand			(0.1	)			6.9				6.8
Savings			-				24.7				24.7
Time			2.9				15.9				18.8
Total Interest-Bearing Deposits			2.8				47.5				50.3
Funds Purchased			-				0.2				0.2
Short-Term Borrowings			1.3				1.1				2.4
Securities Sold Under Agreements to Repurchase			2.0				0.6				2.6
Other Debt			13.4				(0.2	)			13.2
Total Change in Interest Expense			19.5				49.2				68.7
Change in Net Interest Income		$	(11.4	)		$	3.1			$	(8.3	)

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
		Six Months Ended June 30, 2023
		Compared to June 30, 2022
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	0.8			$	8.2			$	9.0
Investment Securities
Available-for-Sale
Taxable			(15.4	)			27.3				11.9
Non-Taxable			0.1				0.1				0.2
Held-to-Maturity
Taxable			7.1				2.7				9.8
Total Investment Securities			(8.2	)			30.1				21.9
Loans Held for Sale			(0.2	)			0.1				(0.1	)
Loans and Leases
Commercial and Industrial			1.6				13.3				14.9
Paycheck Protection Program			(1.1	)			(1.1	)			(2.2	)
Commercial Mortgage			8.6				37.9				46.5
Construction			0.9				2.0				2.9
Commercial Lease Financing			(0.3	)			(0.1	)			(0.4	)
Residential Mortgage			4.8				5.0				9.8
Home Equity			4.4				5.1				9.5
Automobile			2.2				0.9				3.1
Other 2			0.3				1.1				1.4
Total Loans and Leases			21.4				64.1				85.5
Other			1.0				1.1				2.1
Total Change in Interest Income			14.8				103.6				118.4
Change in Interest Expense:
Interest-Bearing Deposits
Demand			(0.1	)			11.6				11.5
Savings			0.1				44.2				44.3
Time			3.9				26.0				29.9
Total Interest-Bearing Deposits			3.9				81.8				85.7
Funds Purchased			0.2				0.6				0.8
Short-Term Borrowings			4.3				1.3				5.6
Securities Sold Under Agreements to Repurchase			3.9				1.3				5.2
Other Debt			18.6				(0.2	)			18.4
Total Change in Interest Expense			30.9				84.8				115.7
Change in Net Interest Income		$	(16.1	)		$	18.8			$	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.

Bank of Hawai‘i Corporation and Subsidiaries
Salaries and Benefits														Table 9
		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
(dollars in thousands)		2023				2023				2022				2023				2022
Salaries		$	37,962			$	38,617			$	36,721			$	76,579			$	71,653
Incentive Compensation			2,984				3,997				6,073				6,981				12,184
Share-Based Compensation			4,096				3,159				3,962				7,255				7,761
Commission Expense			775				647				1,232				1,422				2,873
Retirement and Other Benefits			3,489				5,888				4,036				9,377				8,729
Payroll Taxes			3,310				5,848				3,034				9,158				7,978
Medical, Dental, and Life Insurance			3,568				3,864				2,591				7,432				5,825
Separation Expense			(9	)			3,068				120				3,059				690
Total Salaries and Benefits		$	56,175			$	65,088			$	57,769			$	121,263			$	117,693

Bank of Hawai‘i Corporation and Subsidiaries
Loan and Lease Portfolio Balances													Table 10
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2023			2023			2022			2022			2022
Commercial
Commercial and Industrial	$	1,502,676		$	1,425,916	)	$	1,389,066	)	$	1,368,966	)	$	1,323,830	)
Paycheck Protection Program		13,789			15,175			19,579			22,955			31,964
Commercial Mortgage		3,796,769			3,826,283			3,725,542			3,591,943			3,464,126
Construction		236,428			232,903			260,825			236,498			246,177
Lease Financing		62,779			65,611			69,491			73,989			89,535
Total Commercial		5,612,441			5,565,888			5,464,503			5,294,351			5,155,632
Consumer
Residential Mortgage		4,721,976			4,691,298			4,653,072			4,585,723			4,486,571
Home Equity		2,278,105			2,260,001			2,225,950			2,185,484			2,101,612
Automobile		878,767			877,979			870,396			820,640			775,065
Other 1		423,600			429,356			432,499			435,408			432,693
Total Consumer		8,302,448			8,258,634			8,181,917			8,027,255			7,795,941
Total Loans and Leases	$	13,914,889		$	13,824,522		$	13,646,420		$	13,321,606		$	12,951,573
1 Comprised of other revolving credit, installment, and lease financing.
Deposits
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2023			2023			2022			2022			2022
Consumer	$	10,018,931		$	10,158,833		$	10,304,335		$	10,507,946		$	10,554,121
Commercial		8,019,971			8,594,441			8,569,670			8,841,781			8,824,609
Public and Other		2,469,713			1,738,026			1,741,691			1,539,046			1,646,951
Total Deposits	$	20,508,615		$	20,491,300		$	20,615,696		$	20,888,773		$	21,025,681
Average Deposits
	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2023			2023			2022			2022			2022
Consumer	$	9,977,239		$	10,178,988		$	10,295,563		$	10,485,895		$	10,617,060
Commercial		8,138,358			8,611,960			8,588,198			9,002,432			8,874,988
Public and Other		1,903,004			1,639,934			1,457,566			1,375,354			1,077,315
Total Deposits	$	20,018,601		$	20,430,882		$	20,341,327		$	20,863,681		$	20,569,363

Bank of Hawai‘i Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More														Table 11
		June 30,				March 31,				December 31,				September 30,				June 30,
(dollars in thousands)		2023				2023				2022				2022				2022
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial		$	17			$	31			$	37			$	49			$	85
Commercial Mortgage			3,107				3,216				3,309				3,396				3,462
Total Commercial			3,124				3,247				3,346				3,445				3,547
Consumer
Residential Mortgage			3,504				4,199				4,239				4,945				5,179
Home Equity			3,809				3,638				4,022				4,438				4,435
Total Consumer			7,313				7,837				8,261				9,383				9,614
Total Non-Accrual Loans and Leases			10,437				11,084				11,607				12,828				13,161
Foreclosed Real Estate			1,040				1,040				1,040				1,040				2,332
Total Non-Performing Assets		$	11,477			$	12,124			$	12,647			$	13,868			$	15,493
Accruing Loans and Leases Past Due 90 Days or More
Consumer
Residential Mortgage		$	3,560			$	4,566			$	2,429			$	3,279			$	2,638
Home Equity			2,022				1,723				1,673				1,061				2,029
Automobile			577				598				589				467				359
Other 1			633				632				683				513				508
Total Consumer			6,792				7,519				5,374				5,320				5,534
Total Accruing Loans and Leases Past Due 90 Days or More		$	6,792			$	7,519			$	5,374			$	5,320			$	5,534
Total Loans and Leases		$	13,914,889			$	13,824,522			$	13,646,420			$	13,321,606			$	12,951,573
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.08	%			0.08	%			0.09	%			0.10	%			0.10	%
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate			0.08	%			0.09	%			0.09	%			0.10	%			0.12	%
Ratio of Non-Performing Assets to Total Assets			0.04	%			0.05	%			0.05	%			0.06	%			0.06	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate			0.06	%			0.06	%			0.06	%			0.07	%			0.07	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate			0.10	%			0.11	%			0.11	%			0.13	%			0.15	%
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	%			0.13	%			0.14	%			0.16	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter		$	12,124			$	12,647			$	13,868			$	15,493			$	19,979
Additions			1,116				552				704				489				2,293
Reductions
Payments			(226	)			(778	)			(1,605	)			(706	)			(5,511	)
Return to Accrual Status			(1,527	)			(297	)			(301	)			(116	)			(1,267	)
Sales of Foreclosed Real Estate			-				-				-				(1,292	)			-
Charge-offs / Write-downs			(10	)			-				(19	)			-				(1	)
Total Reductions			(1,763	)			(1,075	)			(1,925	)			(2,114	)			(6,779	)
Balance at End of Quarter		$	11,477			$	12,124			$	12,647			$	13,868			$	15,493

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												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
(dollars in thousands)		2023				2023				2022				2023				2022
Balance at Beginning of Period		$	150,579			$	151,247			$	157,264			$	151,247			$	164,297
Loans and Leases Charged-Off
Commercial
Commercial and Industrial			(203	)			(261	)			(233	)			(464	)			(582	)
Consumer
Residential Mortgage			(6	)			-				(80	)			(6	)			(80	)
Home Equity			(5	)			(50	)			(22	)			(55	)			(90	)
Automobile			(1,293	)			(1,663	)			(1,157	)			(2,956	)			(2,687	)
Other 1			(2,004	)			(2,335	)			(1,854	)			(4,339	)			(3,815	)
Total Loans and Leases Charged-Off			(3,511	)			(4,309	)			(3,346	)			(7,820	)			(7,254	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial			103				50				51				153				420
Consumer
Residential Mortgage			58				61				920				119				974
Home Equity			578				184				416				762				931
Automobile			777				672				684				1,449				1,423
Other 1			618				674				644				1,292				1,389
Total Recoveries on Loans and Leases Previously Charged-Off			2,134				1,641				2,715				3,775				5,137
Net Charged-Off - Loans and Leases			(1,377	)			(2,668	)			(631	)			(4,045	)			(2,117	)
Net Charged-Off - Accrued Interest Receivable			-				-				-				-				(47	)
Provision for Credit Losses:
Loans and Leases			3,167				1,806				(2,885	)			4,973				(7,192	)
Accrued Interest Receivable			-				-				-				-				(367	)
Unfunded Commitments			(667	)			194				350				(473	)			(476	)
Total Provision for Credit Losses			2,500				2,000				(2,535	)			4,500				(8,035	)
Balance at End of Period		$	151,702			$	150,579			$	154,098			$	151,702			$	154,098
Components
Allowance for Credit Losses - Loans and Leases		$	145,367			$	143,577			$	148,512			$	145,367			$	148,512
Reserve for Unfunded Commitments			6,335				7,002				5,586				6,335				5,586
Total Reserve for Credit Losses		$	151,702			$	150,579			$	154,098			$	151,702			$	154,098
Average Loans and Leases Outstanding		$	13,876,754			$	13,717,483			$	12,700,825			$	13,797,559			$	12,496,747
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)			0.04	%			0.08	%			0.02	%			0.06	%			0.03	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 2			1.04	%			1.04	%			1.15	%			1.04	%			1.15	%

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 June 30, 2023
Net Interest Income (Loss)		$	99,814			$	53,673			$	(29,139	)		$	124,348
Provision for Credit Losses			1,392				(15	)			1,123				2,500
Net Interest Income (Loss) After Provision for Credit Losses			98,422				53,688				(30,262	)			121,848
Noninterest Income			31,944				7,939				3,372				43,255
Noninterest Expense			(81,275	)			(19,302	)			(3,459	)			(104,036	)
Income (Loss) Before Income Taxes			49,091				42,325				(30,349	)			61,067
Provision for Income Taxes			(12,645	)			(10,710	)			8,349				(15,006	)
Net Income (Loss)		$	36,446			$	31,615			$	(22,000	)		$	46,061
Total Assets as of June 30, 2023		$	8,739,294			$	5,714,929			$	10,493,713			$	24,947,936
Three Months Ended June 30, 2022 1
Net Interest Income		$	76,872			$	49,791			$	6,239			$	132,902
Provision for Credit Losses			632				(1	)			(3,131	)			(2,500	)
Net Interest Income After Provision for Credit Losses			76,240				49,792				9,370				135,402
Noninterest Income			31,868				8,363				1,927				42,158
Noninterest Expense			(82,856	)			(17,014	)			(3,069	)			(102,939	)
Income Before Income Taxes			25,252				41,141				8,228				74,621
Provision for Income Taxes			(6,339	)			(10,252	)			(1,168	)			(17,759	)
Net Income		$	18,913			$	30,889			$	7,060			$	56,862
Total Assets as of June 30, 2022 1		$	8,205,352			$	5,339,224			$	9,688,123			$	23,232,699

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
Six Months Ended June 30, 2023
Net Interest Income (Loss)		$	197,822			$	110,378			$	(47,897	)		$	260,303
Provision for Credit Losses			4,061				(16	)			455				4,500
Net Interest Income (Loss) After Provision for Credit Losses			193,761				110,394				(48,352	)			255,803
Noninterest Income			63,098				16,588				4,306				83,992
Noninterest Expense			(166,348	)			(39,591	)			(10,016	)			(215,955	)
Income (Loss) Before Income Taxes			90,511				87,391				(54,062	)			123,840
Provision for Income Taxes			(23,268	)			(21,503	)			13,834				(30,937	)
Net Income (Loss)		$	67,243			$	65,888			$	(40,228	)		$	92,903
Total Assets as of June 30, 2023		$	8,739,294			$	5,714,929			$	10,493,713			$	24,947,936
Six Months Ended June 30, 2022 1
Net Interest Income		$	147,233			$	96,140			$	14,792			$	258,165
Provision for Credit Losses			2,315				(198	)			(10,117	)			(8,000	)
Net Interest Income After Provision for Credit Losses			144,918				96,338				24,909				266,165
Noninterest Income			63,837				18,561				3,311				85,709
Noninterest Expense			(164,666	)			(35,683	)			(6,464	)			(206,813	)
Income Before Income Taxes			44,089				79,216				21,756				145,061
Provision for Income Taxes			(11,053	)			(19,449	)			(2,863	)			(33,365	)
Net Income		$	33,036			$	59,767			$	18,893			$	111,696
Total Assets as of June 30, 2022 1		$	8,205,352			$	5,339,224			$	9,688,123			$	23,232,699

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
		June 30,				March 31,				December 31,				September 30,				June 30,
(dollars in thousands, except per share amounts)		2023				2023				2022				2022				2022
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases		$	144,541			$	136,501			$	128,683			$	115,013			$	101,663
Income on Investment Securities
Available-for-Sale			23,301				23,893				18,476				16,995				17,984
Held-to-Maturity			23,375				23,948				23,708				20,243				18,838
Deposits			18				27				13				10				5
Funds Sold			6,395				3,366				1,093				2,335				719
Other			2,121				597				340				322				353
Total Interest Income			199,751				188,332				172,313				154,918				139,562
Interest Expense
Deposits			53,779				37,794				23,494				10,296				3,535
Securities Sold Under Agreements to Repurchase			5,436				5,377				4,289				2,745				2,794
Funds Purchased			184				704				318				40				57
Short-Term Borrowings			2,510				3,203				1,978				-				92
Other Debt			13,494				5,299				1,496				182				182
Total Interest Expense			75,403				52,377				31,575				13,263				6,660
Net Interest Income			124,348				135,955				140,738				141,655				132,902
Provision for Credit Losses			2,500				2,000				200				-				(2,500	)
Net Interest Income After Provision for Credit Losses			121,848				133,955				140,538				141,655				135,402
Noninterest Income
Trust and Asset Management			11,215				10,690				10,652				10,418				11,457
Mortgage Banking			1,176				1,004				991				1,002				1,247
Service Charges on Deposit Accounts			7,587				7,737				7,513				7,526				7,309
Fees, Exchange, and Other Service Charges			14,150				13,808				13,906				13,863				14,193
Investment Securities Losses, Net			(1,310	)			(1,792	)			(1,124	)			(2,147	)			(1,295	)
Annuity and Insurance			1,038				1,271				1,087				1,034				870
Bank-Owned Life Insurance			2,876				2,842				2,475				2,486				2,658
Other			6,523				5,177				5,672				(3,522	)			5,719
Total Noninterest Income			43,255				40,737				41,172				30,660				42,158
Noninterest Expense
Salaries and Benefits			56,175				65,088				57,639				59,938				57,769
Net Occupancy			9,991				9,872				9,499				10,186				9,930
Net Equipment			10,573				10,375				9,942				9,736				9,543
Data Processing			4,599				4,583				4,579				4,616				4,607
Professional Fees			4,651				3,883				3,958				3,799				3,542
FDIC Insurance			3,173				3,234				1,774				1,680				1,590
Other			14,874				14,884				15,312				15,794				15,958
Total Noninterest Expense			104,036				111,919				102,703				105,749				102,939
Income Before Provision for Income Taxes			61,067				62,773				79,007				66,566				74,621
Provision for Income Taxes			15,006				15,931				17,700				13,765				17,759
Net Income		$	46,061			$	46,842			$	61,307			$	52,801			$	56,862
Preferred Stock Dividends			1,969				1,969				1,969				1,969				1,969
Net Income Available to Common Shareholders		$	44,092			$	44,873			$	59,338			$	50,832			$	54,893
Basic Earnings Per Common Share		$	1.12			$	1.14			$	1.51			$	1.28			$	1.38
Diluted Earnings Per Common Share		$	1.12			$	1.14			$	1.50			$	1.28			$	1.38
Balance Sheet Totals
Loans and Leases		$	13,914,889			$	13,824,522			$	13,646,420			$	13,321,606			$	12,951,573
Total Assets			24,947,936				23,931,977				23,606,877				23,134,040				23,232,699
Total Deposits			20,508,615				20,491,300				20,615,696				20,888,773				21,025,681
Total Shareholders' Equity			1,358,279				1,354,430				1,316,995				1,282,384				1,348,746
Performance Ratios
Return on Average Assets			0.77	%			0.80	%			1.05	%			0.91	%			1.00	%
Return on Average Shareholders' Equity			13.55				14.25				18.91				15.31				16.40
Return on Average Common Equity			14.95				15.79				21.28				16.98				18.19
Efficiency Ratio 1			62.07				63.34				56.46				61.37				58.80
Net Interest Margin 2			2.22				2.47				2.60				2.60				2.47

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
		Five Months Ended						Year Ended
(dollars in millions; jobs in thousands)		May 31, 2023						December 31, 2022							December 31, 2021
Hawaii Economic Trends
State General Fund Revenues 1		$	4,204.9		(3.6	)%		$	9,441.3			16.0	%		$	8,137.9			26.9	%
General Excise and Use Tax Revenue 1			1,916.0		9.4				4,263.4			18.3				3,604.3			18.6
Jobs 2			657.4						654.5							642.6
												June 30,			December 31,
												2023			2022				2021
Unemployment, seasonally adjusted 3
Statewide												3.0	%			3.7	%		3.2	%
Honolulu County												3.1				3.3			3.7
Hawaii County												3.0				4.7			1.8
Maui County												2.5				4.5			2.4
Kauai County												2.6				4.7			2.7
								June 30,				December 31,
(1-year percentage change, except months of inventory)								2023				2022			2021				2020
Housing Trends (Single Family Oahu) 4
Median Home Price									(5.5	)%		11.6	%			19.3	%		5.2	%
Home Sales Volume (units)									(34.6	)%		(23.2	)%			17.9	%		2.3	%
Months of Inventory									2.6			2.1				0.8			1.4
								Monthly Visitor Arrivals,							Percentage Change
(in thousands)								Not Seasonally Adjusted							from Previous Year
Tourism 5
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												858.1							14.0
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												752.8							219.3
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

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

 

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Media Inquiries

Melissa Torres-Laing

Email: Melissa.Torres-Laing@boh.com

Telephone: 808-694-8384

Mobile: 808-859-1703



Investor/Analyst Inquiries

Cindy Wyrick

Email: Cynthia.Wyrick@boh.com

Telephone: 808-694-8430



Chang Park

Email: Chang.Park@boh.com

Phone: 808-694-8238

Source: Bank of Hawai‘i Corporation

FAQ

What were the diluted earnings per common share for Q2 2023?

The diluted earnings per common share for Q2 2023 were $1.12.

How does the net income for Q2 2023 compare to the previous quarter?

The net income for Q2 2023 decreased by 1.7% compared to the previous quarter.

What is the dividend declared by the Board of Directors?

The Board of Directors declared a dividend of $0.70 per common share.

What is the growth rate of total deposits?

Total deposits increased by 0.1% from the previous quarter.

What is the growth rate of loans?

Loans grew by 0.7% with growth coming from both consumer and commercial businesses.

What is the change in non-performing assets?

Non-performing assets decreased by $0.6 million from the previous quarter.

Are the capital levels of the company above regulatory well-capitalized minimums?

Yes, the capital levels of the company remain well above regulatory well-capitalized minimums.