Bank of Hawai‘i Corporation Third Quarter 2022 Financial Results

Rhea-AI Summary

Bank of Hawai‘i Corporation (NYSE: BOH) reported diluted earnings per share of $1.28 for Q3 2022, down from $1.38 in Q2 2022 and $1.52 in Q3 2021. Net income was $52.8 million, a decrease of 7.1% from Q2 and 14.9% from the previous year. The decline was attributed to a $6.9 million pre-tax charge related to asset sales and lower PPP income. Net interest income increased 6.6% from Q2 to $141.7 million, with a net interest margin of 2.60%. The board declared a dividend of $0.70 per share, payable December 14, 2022.

Positive

• Net interest income increased by 6.6% to $141.7 million.
• Net interest margin rose to 2.60%, up 13 basis points from Q2 2022.
• Total loans and leases increased by 2.9% from Q2 2022 to $13.3 billion.

Negative

• Diluted earnings per share decreased from $1.38 in Q2 2022 to $1.28.
• Net income declined by 7.1% from Q2 2022 and 14.9% from Q3 2021.
• Noninterest income fell by 27.3% from Q2 2022.

• Diluted Earnings Per Common Share $1.28
• Net Income $52.8 Million
• 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 $1.28 for the third quarter of 2022, compared with diluted earnings per common share of $1.38 in the previous quarter and $1.52 in the same quarter last year. Net income for the third quarter of 2022 was $52.8 million, down 7.1% from the second quarter of 2022 and down 14.9% from the third quarter of 2021. The decrease from the second quarter of 2022 was primarily due to a one-time pre-tax charge of $6.9 million related to our agreement to sell assets that will terminate certain leveraged leases and a decrease in the negative provision for credit losses. The decrease from the third quarter of 2021 was primarily due to the aforementioned charge, a decrease in the negative provision for credit losses and lower PPP income in the current quarter and one-time items in the third quarter of 2021.

“Bank of Hawai‘i continued to perform well during the third quarter of 2022," said Peter Ho, Chairman, President, and CEO. “We experienced quality core market loan growth and continued net interest income and margin expansion. Asset quality, capital, and liquidity remained strong.”

Financial Highlights

• The return on average assets for the third quarter of 2022 was 0.91% compared with 1.00% in the previous quarter and 1.07% in the same quarter of 2021.

• The return on average common equity for the third quarter of 2022 was 16.98% compared with 18.19% in the previous quarter and 17.08% in the same quarter of 2021.

• Net interest income for the third quarter of 2022 was $141.7 million, an increase of 6.6% from the second quarter of 2022 and an increase of 11.7% from the third quarter of 2021. Net interest margin was 2.60% in the third quarter of 2022, an increase of 13 basis points compared to the previous quarter and an increase of 28 basis points from the same quarter of 2021.
  • The increase in net interest income and margin in the third quarter of 2022 compared to prior periods was due to the higher rate environment and continued strong loan growth.
  • Net interest income for the second quarter of 2022 included $1.1 million of interest recoveries.

• There was no provision for credit losses for the third quarter of 2022 compared with a net benefit of $2.5 million in the previous quarter and a net benefit of $10.4 million in the same quarter of 2021.

• Noninterest income was $30.7 million in the third quarter of 2022, a decrease of 27.3% from the previous quarter and a decrease of 25.9% from the same quarter of 2021 primarily due to one-time items in the current quarter.
  • Noninterest income in the current quarter included a one-time pre-tax charge of $6.9 million related to our agreement to sell assets that will terminate leveraged leases related to 31 locomotives. The sale and lease termination will complete the Company’s process of exiting the leveraged lease market. In addition, noninterest income in the current quarter also included a negative adjustment of $0.9 million related to a change in the Visa Class B conversion ratio.

• Noninterest expense was $105.7 million in the third quarter of 2022, an increase of 2.7% from the previous quarter and an increase of 9.6% from the same quarter of 2021.
  • Compared to the same period in 2021, noninterest expense included the impact of higher salaries and benefits, including $1.8 million in separation expenses, and higher occupancy expenses, primarily due to a one-time benefit in the same quarter of last year from the sale of property.
  • One-time significant items in the third quarter of 2021 included a gain of $6.3 million related to the sale of property partially offset by $3.8 million of fees related to the early termination of repurchase agreements and $1.2 million in separation expenses.

• The effective tax rate for the third quarter of 2022 was 20.7% compared with 23.8% in the previous quarter and 24.4% during the same quarter of 2021.
  • The lower effective tax rate in the current quarter is primarily due to tax benefits related to the aforementioned agreement to sell assets that will terminate certain leveraged leases.

Asset Quality

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

• Total non-performing assets were $13.9 million at September 30, 2022, down by $1.6 million from June 30, 2022 and down $6.8 million from September 30, 2021. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.10% at the end of the quarter, a decrease of 2 basis points from the end of the prior quarter and a decrease of 7 basis points from the same quarter of 2021.

• Net loan and lease charge-offs during the third quarter of 2022 were $1.1 million or 0.03% annualized of total average loans and leases outstanding.
  • Net loan and lease charge-offs for the third quarter of 2022 were comprised of charge-offs of $2.9 million partially offset by recoveries of $1.7 million.
  • Compared to the prior quarter, net loan and lease charge-offs increased by $0.5 million or 1 basis point annualized on total average loans and leases outstanding.
  • Compared to the same quarter of 2021, net loan and lease charge-offs decreased by $0.05 million or 1 basis point annualized on total average loans and leases outstanding.

• The allowance for credit losses on loans and leases was $146.4 million at September 30, 2022, a decrease of $2.1 million from June 30, 2022 and a decrease of $21.5 million from September 30, 2021. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.10% at the end of the quarter, down 5 basis points from the end of the prior quarter and down 29 basis points from the end of the same quarter of 2021.

Balance Sheet

• Total assets were $23.1 billion at September 30, 2022, a decrease of 0.4% from June 30, 2022 and an increase of 0.7% from September 30, 2021.

• The investment securities portfolio was $7.9 billion at September 30, 2022, a decrease of 4.7% from June 30, 2022 and a decrease of 14.8% from September 30, 2021.
  • During the third quarter, the Company transferred investment securities with total fair value of approximately $1.3 billion from available-for-sale to held-to-maturity.
  • 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 $13.3 billion at September 30, 2022, an increase of 2.9% from June 30, 2022 and an increase of 10.3% from September 30, 2021.
  • Total loans and leases excluding PPP loans were $13.3 billion at September 30, 2022, an increase of 2.9% from June 30, 2022 and an increase of 12.7% from September 30, 2021.

• Total deposits were $20.9 billion at September 30, 2022, a decrease of 0.7% from June 30, 2022 and an increase of 1.9% from September 30, 2021.

Capital and Dividends

• The Tier 1 Capital Ratio was 12.72% at September 30, 2022 compared with 13.01% at June 30, 2022 and 13.47% at September 30, 2021.

• The Tier 1 Leverage Ratio was 7.28% at September 30, 2022 compared with 7.29% at June 30, 2022 and 7.10% at September 30, 2021.

• The Company repurchased 187.5 thousand shares of common stock at a total cost of $15.0 million under its share repurchase program in the third quarter of 2022 at an average cost of $79.84 per share repurchased.
  • Total remaining buyback authority under the share repurchase program was $50.9 million at September 30, 2022.

• The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on December 14, 2022 to shareholders of record at the close of business on November 30, 2022.

• On October 4, 2022, 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 November 1, 2022 to shareholders of record of the preferred stock at the close of business on October 17, 2022.

Conference Call Information

The Company will review its third 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 below:
  https://register.vevent.com/register/BIb16c1a66caad46fe8057fb079c9fe595.
• A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawaii Time on Monday, October 24, 2022. 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 and June 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 Hawaii Corporation and Subsidiaries
Financial Highlights																		Table 1
		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,
(dollars in thousands, except per share amounts)		2022				2022				2021				2022				2021
For the Period:
Operating Results
Net Interest Income		$	141,655			$	132,902			$	126,819			$	399,820			$	370,902
Provision for Credit Losses			-				(2,500	)			(10,400	)			(8,000	)			(40,800	)
Total Noninterest Income			30,660				42,158				41,378				116,369				128,779
Total Noninterest Expense			105,749				102,939				96,519				312,562				291,911
Pre-Provision Net Revenue			66,566				72,121				71,678				203,627				207,770
Net Income			52,801				56,862				62,053				164,497				189,535
Net Income Available to Common Shareholders			50,832				54,893				61,047				158,590				188,529
Basic Earnings Per Common Share			1.28				1.38				1.53				4.00				4.73
Diluted Earnings Per Common Share			1.28				1.38				1.52				3.98				4.70
Dividends Declared Per Common Share			0.70				0.70				0.70				2.10				2.04
Performance Ratios
Return on Average Assets			0.91	%			1.00	%			1.07	%			0.96	%			1.15	%
Return on Average Shareholders' Equity			15.31				16.40				15.41				15.25				17.31
Return on Average Common Equity			16.98				18.19				17.08				16.81				18.10
Efficiency Ratio 1			61.37				58.80				57.38				60.55				58.42
Net Interest Margin 2			2.60				2.47				2.32				2.47				2.37
Dividend Payout Ratio 3			54.69				50.72				45.75				52.50				43.13
Average Shareholders' Equity to Average Assets			5.91				6.08				6.95				6.28				6.63
Average Balances
Average Loans and Leases		$	13,126,717			$	12,700,825			$	11,958,321			$	12,709,045			$	12,002,426
Average Assets			23,135,820				22,891,262				22,993,036				22,959,246				22,079,174
Average Deposits			20,863,681				20,569,363				20,473,777				20,621,310				19,619,053
Average Shareholders' Equity			1,367,946				1,390,653				1,598,076				1,441,706				1,463,566
Per Share of Common Stock
Book Value 4		$	27.55			$	29.09			$	35.16			$	27.55			$	35.16
Tangible Book Value			26.76				28.30				34.38				26.76				34.38
Market Value
Closing			76.12				74.40				82.17				76.12				82.17
High			85.45				84.93				87.12				92.38				99.10
Low			70.89				70.97				75.68				70.89				75.65
						September 30,				June 30,				December 31,				September 30,
						2022				2022				2021				2021
As of Period End:
Balance Sheet Totals
Loans and Leases						$	13,321,606			$	12,951,573			$	12,259,076			$	12,072,750
Total Assets							23,134,040				23,232,699				22,784,941				22,965,383
Total Deposits							20,888,773				21,025,681				20,360,108				20,493,678
Other Debt							10,319				10,343				10,391				10,414
Total Shareholders' Equity							1,282,384				1,348,746				1,611,611				1,597,109
Asset Quality
Non-Performing Assets						$	13,868			$	15,493			$	18,966			$	20,620
Allowance for Credit Losses - Loans and Leases							146,436				148,512				157,821				167,920
Allowance to Loans and Leases Outstanding 5							1.10	%			1.15	%			1.29	%			1.39	%
Capital Ratios 6
Common Equity Tier 1 Capital Ratio							11.42	%			11.66	%			12.12	%			12.02	%
Tier 1 Capital Ratio							12.72				13.01				13.56				13.47
Total Capital Ratio							13.82				14.14				14.81				14.72
Tier 1 Leverage Ratio							7.28				7.29				7.32				7.10
Total Shareholders' Equity to Total Assets							5.54				5.81				7.07				6.95
Tangible Common Equity to Tangible Assets 7							4.64				4.90				6.15				6.04
Tangible Common Equity to Risk-Weighted Assets 7							7.97				8.72				11.44				11.46
Non-Financial Data
Full-Time Equivalent Employees							2,115				2,114				2,056				2,049
Branches							51				54				54				54
ATMs							316				310				307				303

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 Book Value was revised from $35.30 for the three months ended and nine months ended September 30, 2021.

5 The numerator comprises the Allowance for Credit Losses - Loans and Leases.

6 Regulatory capital ratios as of September 30, 2022 are preliminary.

7 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 Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures																Table 2
				September 30,				June 30,				December 31,				September 30,
(dollars in thousands)				2022				2022				2021				2021
Total Shareholders' Equity				$	1,282,384			$	1,348,746			$	1,611,611			$	1,597,109
Less: Preferred Stock					180,000				180,000				180,000				180,000
Goodwill					31,517				31,517				31,517				31,517
Tangible Common Equity				$	1,070,867			$	1,137,229			$	1,400,094			$	1,385,592
Total Assets					23,134,040				23,232,699				22,784,941				22,965,383
Less: Goodwill					31,517				31,517				31,517				31,517
Tangible Assets				$	23,102,523			$	23,201,182			$	22,753,424			$	22,933,866
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements 1				$	13,428,188			$	13,038,852			$	12,236,805			$	12,093,010
Total Shareholders' Equity to Total Assets					5.54	%			5.81	%			7.07	%			6.95	%
Tangible Common Equity to Tangible Assets (Non-GAAP)					4.64	%			4.90	%			6.15	%			6.04	%
Tier 1 Capital Ratio 1					12.72	%			13.01	%			13.56	%			13.47	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1					7.97	%			8.72	%			11.44	%			11.46	%

1 Regulatory capital ratios as of September 30, 2022 are preliminary.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income																		Table 3
		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,
(dollars in thousands, except per share amounts)		2022				2022				2021				2022				2021
Interest Income
Interest and Fees on Loans and Leases		$	115,013			$	101,663			$	100,570			$	311,115			$	300,763
Income on Investment Securities
Available-for-Sale			16,995				17,984				16,396				52,079				48,700
Held-to-Maturity			20,243				18,838				16,754				57,782				43,630
Deposits			10				5				2				19				9
Funds Sold			2,335				719				382				3,181				779
Other			322				353				159				877				526
Total Interest Income			154,918				139,562				134,263				425,053				394,407
Interest Expense
Deposits			10,296				3,535				3,837				16,184				12,318
Securities Sold Under Agreements to Repurchase			2,745				2,794				3,423				8,311				10,426
Funds Purchased			40				57				-				99				1
Short-Term Borrowings			-				92				-				92				-
Other Debt			182				182				184				547				760
Total Interest Expense			13,263				6,660				7,444				25,233				23,505
Net Interest Income			141,655				132,902				126,819				399,820				370,902
Provision for Credit Losses			-				(2,500	)			(10,400	)			(8,000	)			(40,800	)
Net Interest Income After Provision for Credit Losses			141,655				135,402				137,219				407,820				411,702
Noninterest Income
Trust and Asset Management			10,418				11,457				11,415				33,151				34,375
Mortgage Banking			1,002				1,247				3,136				4,989				12,056
Service Charges on Deposit Accounts			7,526				7,309				6,510				22,107				18,703
Fees, Exchange, and Other Service Charges			13,863				14,193				13,604				41,008				41,018
Investment Securities Losses, Net			(2,147	)			(1,295	)			(1,259	)			(4,987	)			(39	)
Annuity and Insurance			1,034				870				735				2,695				2,348
Bank-Owned Life Insurance			2,486				2,658				1,897				7,493				5,877
Other			(3,522	)			5,719				5,340				9,913				14,441
Total Noninterest Income			30,660				42,158				41,378				116,369				128,779
Noninterest Expense
Salaries and Benefits			59,938				57,769				56,447				177,631				168,859
Net Occupancy			10,186				9,930				3,079				29,942				17,216
Net Equipment			9,736				9,543				8,924				28,432				26,598
Data Processing			4,616				4,607				4,722				13,783				15,601
Professional Fees			3,799				3,542				2,948				10,599				9,468
FDIC Insurance			1,680				1,590				1,594				4,772				4,917
Other			15,794				15,958				18,805				47,403				49,252
Total Noninterest Expense			105,749				102,939				96,519				312,562				291,911
Income Before Provision for Income Taxes			66,566				74,621				82,078				211,627				248,570
Provision for Income Taxes			13,765				17,759				20,025				47,130				59,035
Net Income		$	52,801			$	56,862			$	62,053			$	164,497			$	189,535
Preferred Stock Dividends			1,969				1,969				1,006				5,908				1,006
Net Income Available to Common Shareholders		$	50,832			$	54,893			$	61,047			$	158,589			$	188,529
Basic Earnings Per Common Share		$	1.28			$	1.38			$	1.53			$	4.00			$	4.73
Diluted Earnings Per Common Share		$	1.28			$	1.38			$	1.52			$	3.98			$	4.70
Dividends Declared Per Common Share		$	0.70			$	0.70			$	0.70			$	2.10			$	2.04
Basic Weighted Average Common Shares			39,567,047				39,693,593				39,881,437				39,670,409				39,870,450
Diluted Weighted Average Common Shares			39,758,209				39,842,608				40,080,919				39,848,795				40,088,899

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)																		Table 4
		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,
(dollars in thousands)		2022				2022				2021				2022				2021
Net Income		$	52,801			$	56,862			$	62,053			$	164,497			$	189,535
Other Comprehensive Loss, Net of Tax:
Net Unrealized Losses on Investment Securities			(79,600	)			(122,647	)			(7,541	)			(382,371	)			(57,714	)
Defined Benefit Plans			354				352				441				1,059				1,324
Other Comprehensive Loss			(79,246	)			(122,295	)			(7,100	)			(381,312	)			(56,390	)
Comprehensive Income (Loss)		$	(26,445	)		$	(65,433	)		$	54,953			$	(216,815	)		$	133,145

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition														Table 5
		September 30,				June 30,				December 31,				September 30,
(dollars in thousands)		2022				2022				2021				2021
Assets
Interest-Bearing Deposits in Other Banks		$	5,429			$	2,264			$	2,571			$	2,188
Funds Sold			402,714				576,430				361,536				422,063
Investment Securities
Available-for-Sale			2,424,608				3,955,476				4,276,056				4,353,520
Held-to-Maturity (Fair Value of $4,668,074; $3,823,739; $4,646,619; and $4,895,763)			5,461,160				4,321,693				4,694,780				4,899,880
Loans Held for Sale			418				4,514				26,746				21,965
Loans and Leases			13,321,606				12,951,573				12,259,076				12,072,750
Allowance for Credit Losses			(146,436	)			(148,512	)			(157,821	)			(167,920	)
Net Loans and Leases			13,175,170				12,803,061				12,101,255				11,904,830
Total Earning Assets			21,469,499				21,663,438				21,462,944				21,604,446
Cash and Due from Banks			247,506				260,672				196,327				231,711
Premises and Equipment, Net			208,251				202,063				199,393				199,144
Operating Lease Right-of-Use Assets			94,613				91,901				95,621				97,007
Accrued Interest Receivable			50,143				47,141				45,242				46,751
Foreclosed Real Estate			1,040				2,332				2,332				2,332
Mortgage Servicing Rights			23,104				23,540				22,251				22,099
Goodwill			31,517				31,517				31,517				31,517
Bank-Owned Life Insurance			451,407				448,925				344,587				293,230
Other Assets			556,960				461,170				384,727				437,146
Total Assets		$	23,134,040			$	23,232,699			$	22,784,941			$	22,965,383
Liabilities
Deposits
Noninterest-Bearing Demand		$	7,300,157			$	7,374,055			$	7,275,287			$	7,111,693
Interest-Bearing Demand			4,399,625				4,339,520				4,628,567				4,768,725
Savings			7,954,006				8,054,899				7,456,165				7,540,345
Time			1,234,985				1,257,207				1,000,089				1,072,915
Total Deposits			20,888,773				21,025,681				20,360,108				20,493,678
Securities Sold Under Agreements to Repurchase			425,490				425,490				450,490				450,490
Other Debt			10,319				10,343				10,391				10,414
Operating Lease Liabilities			102,705				99,722				103,210				104,452
Retirement Benefits Payable			37,053				37,532				38,494				49,802
Accrued Interest Payable			3,405				2,545				2,499				3,415
Taxes Payable			13,527				10,607				11,901				9,815
Other Liabilities			370,384				272,033				196,237				246,208
Total Liabilities			21,851,656				21,883,953				21,173,330				21,368,274
Shareholders' Equity
Preferred Stock ($.01 par value; authorized 180,000 shares; issued / outstanding: September 30, 2022; June 30, 2022; December 31, 2021; and September 30, 2021 - 180,000)			180,000				180,000				180,000				180,000
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: September 30, 2022 - 58,728,796 / 40,011,473; June 30, 2022 - 58,727,909 / 40,182,659; December 31, 2021 - 58,554,669 / 40,253,193; and September 30, 2021 - 58,559,089 / 40,305,801)			582				582				581				580
Capital Surplus			615,985				611,694				602,508				598,341
Accumulated Other Comprehensive Loss			(447,694	)			(368,448	)			(66,382	)			(48,568	)
Retained Earnings			2,024,641				2,002,005				1,950,375				1,916,861
Treasury Stock, at Cost (Shares: September 30, 2022 - 18,717,323; June 30, 2022 - 18,545,250; December 31, 2021 - 18,301,476; and September 30, 2021 - 18,253,288)			(1,091,130	)			(1,077,087	)			(1,055,471	)			(1,050,105	)
Total Shareholders' Equity			1,282,384				1,348,746				1,611,611				1,597,109
Total Liabilities and Shareholders' Equity		$	23,134,040			$	23,232,699			$	22,784,941			$	22,965,383

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																													Table 6
																	Accumulated
																	Other
																	Compre-
		Preferred					Common										hensive
		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, 2021		180,000		$	180,000		40,253,193			$	581		$	602,508			$	(66,382	)		$	1,950,375			$	(1,055,471	)		$	1,611,611
Net Income		-			-		-				-			-				-				164,497				-				164,497
Other Comprehensive Loss		-			-		-				-			-				(381,312	)			-				-				(381,312	)
Share-Based Compensation		-			-		-				-			11,947				-				-				-				11,947
Common Stock Issued under Purchase and Equity Compensation Plans		-			-		247,966				1			1,530				-				256				3,889				5,676
Common Stock Repurchased		-			-		(489,686	)			-			-				-				-				(39,548	)			(39,548	)
Cash Dividends Declared Common Stock ($2.10 per share)		-			-		-				-			-				-				(84,579	)			-				(84,579	)
Cash Dividends Declared Preferred Stock		-			-		-				-			-				-				(5,908	)			-				(5,908	)
Balance as of September 30, 2022		180,000		$	180,000		40,011,473			$	582		$	615,985			$	(447,694	)		$	2,024,641			$	(1,091,130	)		$	1,282,384
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		-			-		-				-			-				-				189,535				-				189,535
Other Comprehensive Loss		-			-		-				-			-				(56,390	)			-				-				(56,390	)
Share-Based Compensation		-			-		-				-			9,658				-				-				-				9,658
Preferred Stock Issued, Net		180,000			180,000		-				-			(4,513	)			-				-				-				175,487
Common Stock Issued under Purchase and Equity Compensation Plans		-			-		466,265				-			1,836				-				(1,218	)			10,541				11,159
Common Stock Repurchased		-			-		(279,776	)			-			-				-				-				(23,412	)			(23,412	)
Cash Dividends Declared Common Stock ($2.04 per share)		-			-		-				-			-				-				(82,429	)			-				(82,429	)
Cash Dividends Declared Preferred Stock		-			-		-				-			-				-				(1,006	)			-				(1,006	)
Balance as of September 30, 2021		180,000		$	180,000		40,305,801			$	580		$	598,341			$	(48,568	)		$	1,916,861			$	(1,050,105	)		$	1,597,109

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1																							Table 7a
		Three Months Ended									Three Months Ended									Three Months Ended
		September 30, 2022									June 30, 2022									September 30, 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		$	2.9		$	-		1.32	%		$	3.5		$	-		0.59	%		$	3.2		$	-		0.23	%
Funds Sold			411.8			2.3		2.22				273.5			0.7		1.04				999.5			0.4		0.15
Investment Securities
Available-for-Sale
Taxable			3,481.9			17.0		1.95				4,123.1			18.0		1.74				4,454.9			16.3		1.46
Non-Taxable			2.5			-		1.56				2.9			-		1.99				10.1			0.1		4.34
Held-to-Maturity
Taxable			4,645.7			20.1		1.73				4,377.0			18.7		1.71				4,294.6			16.5		1.53
Non-Taxable			35.6			0.2		2.10				35.7			0.2		2.10				64.8			0.4		2.37
Total Investment Securities			8,165.7			37.3		1.82				8,538.7			36.9		1.73				8,824.4			33.3		1.51
Loans Held for Sale			4.3			0.1		4.46				6.3			0.1		4.06				24.6			0.2		2.80
Loans and Leases 3
Commercial and Industrial			1,353.8			12.5		3.66				1,330.0			9.9		2.99				1,252.8			9.1		2.88
Paycheck Protection Program			28.0			0.2		3.02				38.7			0.5		5.26				392.0			7.9		7.98
Commercial Mortgage			3,530.9			33.3		3.74				3,357.2			26.2		3.13				2,952.7			21.9		2.94
Construction			233.0			2.8		4.81				222.6			2.4		4.39				289.9			2.5		3.38
Commercial Lease Financing			89.1			0.4		1.58				94.2			0.3		1.44				109.3			0.4		1.58
Residential Mortgage			4,526.6			37.4		3.30				4,445.7			36.4		3.26				4,253.2			34.8		3.27
Home Equity			2,144.8			16.4		3.04				2,032.9			14.4		2.85				1,621.4			12.2		2.97
Automobile			795.5			6.4		3.19				759.1			6.1		3.20				718.7			6.2		3.41
Other 4			425.0			5.9		5.48				420.4			5.6		5.38				368.3			5.7		6.16
Total Loans and Leases			13,126.7			115.3		3.49				12,700.8			101.8		3.21				11,958.3			100.7		3.35
Other			36.9			0.3		3.49				38.2			0.3		3.70				31.5			0.2		2.02
Total Earning Assets			21,748.3			155.3		2.84				21,561.0			139.8		2.60				21,841.5			134.8		2.45
Cash and Due from Banks			233.5									238.4									252.2
Other Assets			1,154.0									1,091.9									899.3
Total Assets		$	23,135.8								$	22,891.3								$	22,993.0
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand		$	4,286.0			1.4		0.13			$	4,442.2			0.7		0.06			$	4,707.1			0.7		0.06
Savings			7,962.0			6.6		0.33				7,692.8			1.9		0.10				7,687.0			1.8		0.09
Time			1,146.9			2.3		0.79				950.4			0.9		0.40				1,267.0			1.4		0.44
Total Interest-Bearing Deposits			13,394.9			10.3		0.30				13,085.4			3.5		0.11				13,661.1			3.9		0.11
Short-Term Borrowings			4.9			0.1		3.17				59.8			0.1		0.98				-			-		-
Securities Sold Under Agreements to Repurchase			425.5			2.7		2.52				447.7			2.8		2.47				547.8			3.4		2.45
Other Debt			10.3			0.2		7.05				10.4			0.3		7.05				10.4			0.2		7.04
Total Interest-Bearing Liabilities			13,835.6			13.3		0.38				13,603.3			6.7		0.20				14,219.3			7.5		0.21
Net Interest Income					$	142.0								$	133.1								$	127.3
Interest Rate Spread								2.46	%								2.40	%								2.24	%
Net Interest Margin								2.60	%								2.47	%								2.32	%
Noninterest-Bearing Demand Deposits			7,468.8									7,484.0									6,812.7
Other Liabilities			463.5									413.3									362.9
Shareholders' Equity			1,367.9									1,390.7									1,598.1
Total Liabilities and Shareholders' Equity		$	23,135.8								$	22,891.3								$	22,993.0

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 $343,000, $221,000, and $315,000

for the three months ended September 30, 2022, June 30, 2022, and September 30, 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 Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1																		Table 7b
		Nine Months Ended												Nine Months Ended
		September 30, 2022												September 30, 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		$	3.3			$	-			0.76	%			$	2.9			$	-			0.44	%
Funds Sold			308.6				3.2			1.36					833.7				0.8			0.12
Investment Securities
Available-for-Sale
Taxable			3,998.2				52.0			1.74					4,252.9				48.4			1.52
Non-Taxable			2.8				-			1.84					11.5				0.4			4.29
Held-to-Maturity
Taxable			4,530.4				57.4			1.69					3,728.9				42.9			1.53
Non-Taxable			35.7				0.6			2.10					48.2				0.9			2.46
Total Investment Securities			8,567.1				110.0			1.71					8,041.5				92.6			1.54
Loans Held for Sale			8.1				0.2			3.43					25.5				0.5			2.81
Loans and Leases 3
Commercial and Industrial			1,339.0				31.4			3.13					1,281.0				28.1			2.94
Paycheck Protection Program			51.7				2.5			6.59					545.9				20.0			4.90
Commercial Mortgage			3,350.3				81.3			3.25					2,894.5				64.5			2.98
Construction			227.7				7.3			4.30					280.0				7.3			3.51
Commercial Lease Financing			94.0				1.0			1.49					107.1				1.2			1.52
Residential Mortgage			4,439.1				108.6			3.26					4,211.8				106.2			3.36
Home Equity			2,026.5				44.1			2.91					1,596.4				36.9			3.09
Automobile			764.2				18.4			3.21					712.5				18.4			3.46
Other 4			416.5				17.0			5.44					373.2				18.1			6.48
Total Loans and Leases			12,709.0				311.6			3.27					12,002.4				300.7			3.35
Other			37.2				0.9			3.14					32.4				0.5			2.17
Total Earning Assets			21,633.3				425.9			2.63					20,938.4				395.1			2.52
Cash and Due from Banks			235.0												259.6
Other Assets			1,090.9												881.2
Total Assets		$	22,959.2											$	22,079.2
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand		$	4,459.9				2.6			0.08				$	4,450.6				2.0			0.06
Savings			7,733.3				9.5			0.16					7,414.6				5.0			0.09
Time			1,023.6				4.1			0.53					1,437.1				5.3			0.49
Total Interest-Bearing Deposits			13,216.8				16.2			0.16					13,302.3				12.3			0.12
Short-Term Borrowings			23.9				0.2			1.05					0.8				-			0.09
Securities Sold Under Agreements to Repurchase			441.1				8.3			2.48					572.7				10.4			2.40
Other Debt			10.3				0.6			7.05					33.5				0.8			3.03
Total Interest-Bearing Liabilities			13,692.1				25.3			0.25					13,909.3				23.5			0.22
Net Interest Income						$	400.6											$	371.6
Interest Rate Spread										2.38	%											2.30	%
Net Interest Margin										2.47	%											2.37	%
Noninterest-Bearing Demand Deposits			7,404.5												6,316.8
Other Liabilities			420.9												389.5
Shareholders' Equity			1,441.7												1,463.6
Total Liabilities and Shareholders' Equity		$	22,959.2											$	22,079.2

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 $818,000 and $836,000

for nine months ended September 30, 2022 and September 30, 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 Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8a
		Three Months Ended September 30, 2022
		Compared to June 30, 2022
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	0.5			$	1.1			$	1.6
Investment Securities
Available-for-Sale
Taxable			(3.0	)			2.0				(1.0	)
Held-to-Maturity
Taxable			1.2				0.2				1.4
Total Investment Securities			(1.8	)			2.2				0.4
Loans and Leases
Commercial and Industrial			0.2				2.4				2.6
Paycheck Protection Program			(0.1	)			(0.2	)			(0.3	)
Commercial Mortgage			1.5				5.6				7.1
Construction			0.1				0.3				0.4
Commercial Lease Financing			0.1				-				0.1
Residential Mortgage			0.6				0.4				1.0
Home Equity			0.9				1.1				2.0
Automobile			0.3				-				0.3
Other 2			0.1				0.2				0.3
Total Loans and Leases			3.7				9.8				13.5
Total Change in Interest Income			2.4				13.1				15.5
Change in Interest Expense:
Interest-Bearing Deposits
Demand			-				0.7				0.7
Savings			0.1				4.6				4.7
Time			0.2				1.2				1.4
Total Interest-Bearing Deposits			0.3				6.5				6.8
Short-Term Borrowings			(0.2	)			0.2				-
Securities Sold Under Agreements to Repurchase			(0.2	)			0.1				(0.1	)
Other Debt			-				(0.1	)			(0.1	)
Total Change in Interest Expense			(0.1	)			6.7				6.6
Change in Net Interest Income		$	2.5			$	6.4			$	8.9

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 Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8b
		Three Months Ended September 30, 2022
		Compared to September 30, 2021
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	(0.4	)		$	2.3			$	1.9
Investment Securities
Available-for-Sale
Taxable			(4.0	)			4.7				0.7
Non-Taxable			(0.1	)			-				(0.1	)
Held-to-Maturity
Taxable			1.4				2.2				3.6
Non-Taxable			(0.2	)			-				(0.2	)
Total Investment Securities			(2.9	)			6.9				4.0
Loans Held for Sale			(0.2	)			0.1				(0.1	)
Loans and Leases
Commercial and Industrial			0.8				2.6				3.4
Paycheck Protection Program			(4.6	)			(3.1	)			(7.7	)
Commercial Mortgage			4.8				6.6				11.4
Construction			(0.6	)			0.9				0.3
Commercial Lease Financing			(0.1	)			0.1				-
Residential Mortgage			2.3				0.3				2.6
Home Equity			4.0				0.2				4.2
Automobile			0.6				(0.4	)			0.2
Other 2			0.9				(0.7	)			0.2
Total Loans and Leases			8.1				6.5				14.6
Other			-				0.1				0.1
Total Change in Interest Income			4.6				15.9				20.5
Change in Interest Expense:
Interest-Bearing Deposits
Demand			(0.1	)			0.8				0.7
Savings			0.1				4.7				4.8
Time			(0.1	)			1.0				0.9
Total Interest-Bearing Deposits			(0.1	)			6.5				6.4
Short-Term Borrowings			0.1				-				0.1
Securities Sold Under Agreements to Repurchase			(0.8	)			0.1				(0.7	)
Total Change in Interest Expense			(0.8	)			6.6				5.8
Change in Net Interest Income		$	5.4			$	9.3			$	14.7

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 Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8c
		Nine Months Ended September 30, 2022
		Compared to September 30, 2021
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	(0.8	)		$	3.2			$	2.4
Investment Securities
Available-for-Sale
Taxable			(3.0	)			6.6				3.6
Non-Taxable			(0.3	)			(0.1	)			(0.4	)
Held-to-Maturity
Taxable			9.9				4.6				14.5
Non-Taxable			(0.2	)			(0.1	)			(0.3	)
Total Investment Securities			6.4				11.0				17.4
Loans Held for Sale			(0.4	)			0.1				(0.3	)
Loans and Leases
Commercial and Industrial			1.3				2.0				3.3
Paycheck Protection Program			(22.6	)			5.1				(17.5	)
Commercial Mortgage			10.8				6.0				16.8
Construction			(1.5	)			1.5				-
Commercial Lease Financing			(0.1	)			(0.1	)			(0.2	)
Residential Mortgage			5.7				(3.3	)			2.4
Home Equity			9.4				(2.2	)			7.2
Automobile			1.3				(1.3	)			-
Other 2			2.0				(3.1	)			(1.1	)
Total Loans and Leases			6.3				4.6				10.9
Other			0.1				0.3				0.4
Total Change in Interest Income			11.6				19.2				30.8
Change in Interest Expense:
Interest-Bearing Deposits
Demand			-				0.6				0.6
Savings			0.2				4.3				4.5
Time			(1.6	)			0.4				(1.2	)
Total Interest-Bearing Deposits			(1.4	)			5.3				3.9
Short-Term Borrowings			0.2				-				0.2
Securities Sold Under Agreements to Repurchase			(2.5	)			0.4				(2.1	)
Other Debt			(0.8	)			0.6				(0.2	)
Total Change in Interest Expense			(4.5	)			6.3				1.8
Change in Net Interest Income		$	16.1			$	12.9			$	29.0

1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

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

Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits														Table 9
		Three Months Ended									Nine Months Ended
		September 30,			June 30,			September 30,			September 30,
(dollars in thousands)		2022			2022			2021			2022			2021
Salaries		$	37,792		$	36,721		$	34,676		$	109,445		$	99,658
Incentive Compensation			5,885			6,073			4,677			18,069			15,763
Share-Based Compensation			3,558			3,962			3,335			11,319			9,093
Commission Expense			1,005			1,232			1,772			3,878			6,807
Retirement and Other Benefits			4,448			4,036			4,746			13,177			15,552
Payroll Taxes			2,826			3,034			2,825			10,804			9,819
Medical, Dental, and Life Insurance			2,605			2,591			3,222			8,430			8,850
Separation Expense			1,819			120			1,194			2,509			3,317
Total Salaries and Benefits		$	59,938		$	57,769		$	56,447		$	177,631		$	168,859

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances														Table 10
		September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)		2022			2022			2022			2021			2021
Commercial
Commercial and Industrial		$	1,368,966		$	1,323,830		$	1,354,757		$	1,361,921		$	1,325,446
Paycheck Protection Program			22,955			31,964			57,809			126,779			268,480
Commercial Mortgage			3,591,943			3,464,126			3,257,689			3,152,130			2,994,520
Construction			236,498			246,177			248,363			220,254			296,052
Lease Financing			73,989			89,535			98,107			105,108			107,526
Total Commercial			5,294,351			5,155,632			5,016,725			4,966,192			4,992,024
Consumer
Residential Mortgage			4,585,723			4,486,571			4,405,718			4,309,602			4,272,540
Home Equity			2,185,484			2,101,612			1,958,285			1,836,588			1,680,229
Automobile			820,640			775,065			742,934			736,565			727,234
Other 1			435,408			432,693			420,830			410,129			400,723
Total Consumer			8,027,255			7,795,941			7,527,767			7,292,884			7,080,726
Total Loans and Leases		$	13,321,606		$	12,951,573		$	12,544,492		$	12,259,076		$	12,072,750
Deposits
		September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)		2022			2022			2022			2021			2021
Consumer		$	10,507,946		$	10,554,121		$	10,654,192		$	10,438,844		$	10,150,199
Commercial			8,841,781			8,824,609			8,818,477			8,641,932			8,767,733
Public and Other			1,539,046			1,646,951			1,243,618			1,279,332			1,575,746
Total Deposits		$	20,888,773		$	21,025,681		$	20,716,287		$	20,360,108		$	20,493,678

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

Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More																		Table 11
		September 30,				June 30,				March 31,				December 31,				September 30,
(dollars in thousands)		2022				2022				2022				2021				2021
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial		$	49			$	85			$	99			$	243			$	209
Commercial Mortgage			3,396				3,462				8,065				8,205				8,309
Total Commercial			3,445				3,547				8,164				8,448				8,518
Consumer
Residential Mortgage			4,945				5,179				3,845				3,305				4,348
Home Equity			4,438				4,435				5,638				4,881				5,422
Total Consumer			9,383				9,614				9,483				8,186				9,770
Total Non-Accrual Loans and Leases			12,828				13,161				17,647				16,634				18,288
Foreclosed Real Estate			1,040				2,332				2,332				2,332				2,332
Total Non-Performing Assets		$	13,868			$	15,493			$	19,979			$	18,966			$	20,620
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial		$	-			$	-			$	22			$	-			$	-
Total Commercial			-				-				22				-				-
Consumer
Residential Mortgage			3,279				2,638				4,113				3,159				4,776
Home Equity			1,061				2,029				2,722				3,456				2,946
Automobile			467				359				504				729				395
Other 1			513				508				649				426				593
Total Consumer			5,320				5,534				7,988				7,770				8,710
Total Accruing Loans and Leases Past Due 90 Days or More		$	5,320			$	5,534			$	8,010			$	7,770			$	8,710
Restructured Loans on Accrual Status and Not Past Due 90 Days or More		$	44,641			$	46,024			$	54,136			$	60,519			$	62,787
Total Loans and Leases		$	13,321,606			$	12,951,573			$	12,544,492			$	12,259,076			$	12,072,750
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.10	%			0.10	%			0.14	%			0.14	%			0.15	%
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate			0.10	%			0.12	%			0.16	%			0.15	%			0.17	%
Ratio of Non-Performing Assets to Total Assets			0.06	%			0.06	%			0.07	%			0.07	%			0.08	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate			0.07	%			0.07	%			0.16	%			0.17	%			0.17	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate			0.13	%			0.15	%			0.16	%			0.14	%			0.17	%
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			0.14	%			0.16	%			0.22	%			0.22	%			0.24	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter		$	15,493			$	19,979			$	18,966			$	20,620			$	18,974
Additions			489				2,293				2,243				357				3,171
Reductions
Payments			(706	)			(5,511	)			(1,230	)			(972	)			(889	)
Return to Accrual Status			(116	)			(1,267	)			-				(1,038	)			(606	)
Sales of Foreclosed Real Estate			(1,292	)			-				-				-				-
Charge-offs/Write-downs			-				(1	)			-				(1	)			(30	)
Total Reductions			(2,114	)			(6,779	)			(1,230	)			(2,011	)			(1,525	)
Balance at End of Quarter		$	13,868			$	15,493			$	19,979			$	18,966			$	20,620

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

Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses																		Table 12
		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,
(dollars in thousands)		2022				2022				2021				2022				2021
Balance at Beginning of Period		$	154,098			$	157,264			$	186,371			$	164,297			$	221,303
Loans and Leases Charged-Off
Commercial
Commercial and Industrial			(147	)			(233	)			(196	)			(729	)			(900	)
Consumer
Residential Mortgage			-				(80	)			(197	)			(80	)			(316	)
Home Equity			-				(22	)			(289	)			(90	)			(412	)
Automobile			(794	)			(1,157	)			(576	)			(3,481	)			(3,894	)
Other 1			(1,924	)			(1,854	)			(2,187	)			(5,739	)			(8,523	)
Total Loans and Leases Charged-Off			(2,865	)			(3,346	)			(3,445	)			(10,119	)			(14,045	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial			45				51				118				465				374
Consumer
Residential Mortgage			156				920				173				1,130				1,609
Home Equity			367				416				216				1,298				1,276
Automobile			441				684				943				1,864				3,034
Other 1			709				644				802				2,098				2,459
Total Recoveries on Loans and Leases Previously Charged-Off			1,718				2,715				2,252				6,855				8,752
Net Charged-Off - Loans and Leases			(1,147	)			(631	)			(1,193	)			(3,264	)			(5,293	)
Net Charged-Off - Accrued Interest Receivable			-				-				(70	)			(47	)			(502	)
Provision for Credit Losses:
Loans and Leases			(929	)			(2,885	)			(11,272	)			(8,121	)			(43,039	)
Accrued Interest Receivable			-				-				(703	)			(367	)			(1,531	)
Unfunded Commitments			905				350				1,575				429				3,770
Balance at End of Period		$	152,927			$	154,098			$	174,708			$	152,927			$	174,708
Components
Allowance for Credit Losses - Loans and Leases		$	146,436			$	148,512			$	167,920			$	146,436			$	167,920
Allowance for Credit Losses - Accrued Interest Receivable			-				-				667				-				667
Reserve for Unfunded Commitments			6,491				5,586				6,121				6,491				6,121
Total Reserve for Credit Losses		$	152,927			$	154,098			$	174,708			$	152,927			$	174,708
Average Loans and Leases Outstanding		$	13,126,717			$	12,700,825			$	11,958,321			$	12,709,045			$	12,002,426
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)			0.03	%			0.02	%			0.04	%			0.03	%			0.06	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 2			1.10	%			1.15	%			1.39	%			1.10	%			1.39	%

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

2 The numerator comprises the Allowance for Credit Losses - Loans and Leases.

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information														Table 13a
		Consumer				Commercial				Treasury				Consolidated
(dollars in thousands)		Banking				Banking				and Other				Total
Three Months Ended September 30, 2022
Net Interest Income (Loss)		$	85,666			$	56,249			$	(260	)		$	141,655
Provision for Credit Losses			1,148				(1	)			(1,147	)			-
Net Interest Income After Provision for Credit Losses			84,518				56,250				887				141,655
Noninterest Income (Loss)			30,974				(911	)			597				30,660
Noninterest Expense			(83,278	)			(17,073	)			(5,398	)			(105,749	)
Income (Loss) Before Income Taxes			32,214				38,266				(3,914	)			66,566
Provision for Income Taxes			(8,104	)			(9,273	)			3,612				(13,765	)
Net Income (Loss)		$	24,110			$	28,993			$	(302	)		$	52,801
Total Assets as of September 30, 2022		$	8,399,068			$	5,486,330			$	9,248,642			$	23,134,040
Three Months Ended September 30, 2021
Net Interest Income		$	72,062			$	50,088			$	4,669			$	126,819
Provision for Credit Losses			1,235				(42	)			(11,593	)			(10,400	)
Net Interest Income After Provision for Credit Losses			70,827				50,130				16,262				137,219
Noninterest Income			32,046				7,906				1,426				41,378
Noninterest Expense			(71,377	)			(15,924	)			(9,218	)			(96,519	)
Income Before Income Taxes			31,496				42,112				8,470				82,078
Provision for Income Taxes			(8,001	)			(10,373	)			(1,651	)			(20,025	)
Net Income		$	23,495			$	31,739			$	6,819			$	62,053
Total Assets as of September 30, 2021		$	7,530,513			$	5,087,831			$	10,347,039			$	22,965,383

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information														Table 13b
		Consumer				Commercial				Treasury				Consolidated
(dollars in thousands)		Banking				Banking				and Other				Total
Nine Months Ended September 30, 2022 1
Net Interest Income		$	232,654			$	152,391			$	14,775			$	399,820
Provision for Credit Losses			3,463				(200	)			(11,263	)			(8,000	)
Net Interest Income After Provision for Credit Losses			229,191				152,591				26,038				407,820
Noninterest Income			94,811				17,650				3,908				116,369
Noninterest Expense			(247,724	)			(52,757	)			(12,081	)			(312,562	)
Income Before Income Taxes			76,278				117,484				17,865				211,627
Provision for Income Taxes			(19,151	)			(28,721	)			742				(47,130	)
Net Income		$	57,127			$	88,763			$	18,607			$	164,497
Total Assets as of September 30, 2022 1		$	8,399,068			$	5,486,330			$	9,248,642			$	23,134,040
Nine Months Ended September 30, 2021
Net Interest Income		$	212,991			$	146,269			$	11,642			$	370,902
Provision for Credit Losses			5,088				205				(46,093	)			(40,800	)
Net Interest Income After Provision for Credit Losses			207,903				146,064				57,735				411,702
Noninterest Income			98,344				22,339				8,096				128,779
Noninterest Expense			(222,426	)			(47,343	)			(22,142	)			(291,911	)
Income Before Income Taxes			83,821				121,060				43,689				248,570
Provision for Income Taxes			(20,840	)			(29,634	)			(8,561	)			(59,035	)
Net Income		$	62,981			$	91,426			$	35,128			$	189,535
Total Assets as of September 30, 2021		$	7,530,513			$	5,087,831			$	10,347,039			$	22,965,383

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

Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data																		Table 14
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
(dollars in thousands, except per share amounts)		2022				2022				2022				2021				2021
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases		$	115,013			$	101,663			$	94,439			$	97,853			$	100,570
Income on Investment Securities
Available-for-Sale			16,995				17,984				17,100				15,850				16,396
Held-to-Maturity			20,243				18,838				18,701				18,325				16,754
Deposits			10				5				4				1				2
Funds Sold			2,335				719				127				104				382
Other			322				353				202				176				159
Total Interest Income			154,918				139,562				130,573				132,309				134,263
Interest Expense
Deposits			10,296				3,535				2,353				2,898				3,837
Securities Sold Under Agreements to Repurchase			2,745				2,794				2,772				2,834				3,423
Funds Purchased			40				57				2				6				-
Short-Term Borrowings			-				92				-				-				-
Other Debt			182				182				183				183				184
Total Interest Expense			13,263				6,660				5,310				5,921				7,444
Net Interest Income			141,655				132,902				125,263				126,388				126,819
Provision for Credit Losses			-				(2,500	)			(5,500	)			(9,700	)			(10,400	)
Net Interest Income After Provision for Credit Losses			141,655				135,402				130,763				136,088				137,219
Noninterest Income
Trust and Asset Management			10,418				11,457				11,276				11,693				11,415
Mortgage Banking			1,002				1,247				2,740				2,908				3,136
Service Charges on Deposit Accounts			7,526				7,309				7,272				6,861				6,510
Fees, Exchange, and Other Service Charges			13,863				14,193				12,952				14,439				13,604
Investment Securities Losses, Net			(2,147	)			(1,295	)			(1,545	)			(1,258	)			(1,259	)
Annuity and Insurance			1,034				870				791				876				735
Bank-Owned Life Insurance			2,486				2,658				2,349				1,907				1,897
Other			(3,522	)			5,719				7,716				5,148				5,340
Total Noninterest Income			30,660				42,158				43,551				42,574				41,378
Noninterest Expense
Salaries and Benefits			59,938				57,769				59,924				59,434				56,447
Net Occupancy			10,186				9,930				9,826				9,028				3,079
Net Equipment			9,736				9,543				9,153				9,105				8,924
Data Processing			4,616				4,607				4,560				4,696				4,722
Professional Fees			3,799				3,542				3,258				3,427				2,948
FDIC Insurance			1,680				1,590				1,502				1,619				1,594
Other			15,794				15,958				15,651				14,369				18,805
Total Noninterest Expense			105,749				102,939				103,874				101,678				96,519
Income Before Provision for Income Taxes			66,566				74,621				70,440				76,984				82,078
Provision for Income Taxes			13,765				17,759				15,606				13,147				20,025
Net Income		$	52,801			$	56,862			$	54,834			$	63,837			$	62,053
Preferred Stock Dividends			1,969				1,969				1,969				1,969				1,006
Net Income Available to Common Shareholders		$	50,832			$	54,893			$	52,865			$	61,868			$	61,047
Basic Earnings Per Common Share		$	1.28			$	1.38			$	1.33			$	1.56			$	1.53
Diluted Earnings Per Common Share		$	1.28			$	1.38			$	1.32			$	1.55			$	1.52
Balance Sheet Totals
Loans and Leases		$	13,321,606			$	12,951,573			$	12,544,492			$	12,259,076			$	12,072,750
Total Assets			23,134,040				23,232,699				23,000,317				22,784,941				22,965,383
Total Deposits			20,888,773				21,025,681				20,716,287				20,360,108				20,493,678
Total Shareholders' Equity			1,282,384				1,348,746				1,448,885				1,611,611				1,597,109
Performance Ratios
Return on Average Assets			0.91	%			1.00	%			0.97	%			1.12	%			1.07	%
Return on Average Shareholders' Equity			15.31				16.40				14.18				15.92				15.41
Return on Average Common Equity			16.98				18.19				15.44				17.40				17.08
Efficiency Ratio 1			61.37				58.80				61.53				60.18				57.38
Net Interest Margin 2			2.60				2.47				2.34				2.34				2.32

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 Hawaii Corporation and Subsidiaries
Hawaii Economic Trends																			Table 15
		Eight Months Ended						Year Ended
(dollars in millions; jobs in thousands)		August 31, 2022						December 31, 2021							December 31, 2020
Hawaii Economic Trends
State General Fund Revenues 1		$	6,698.4		26.0	%		$	8,137.9			26.9	%		$	6,415.1			(12.3	)%
General Excise and Use Tax Revenue 1			2,858.8		20.7				3,604.3			18.6				3,038.8			(15.6	)
Jobs 2			651.6						642.6							594.4
												August 31,			December 31,
												2022			2021				2020
Unemployment, seasonally adjusted 3
Statewide												4.1	%			4.3	%		9.8	%
Honolulu County												3.8				4.0			8.8
Hawaii County												4.2				4.2			9.3
Maui County												4.8				5.4			13.9
Kauai County												5.4				6.0			13.6
								September 30,				December 31,
(1-year percentage change, except months of inventory)								2022				2021			2020				2019
Housing Trends (Single Family Oahu) 4
Median Home Price									13.9	%		19.3	%			5.2	%		(0.1	)%
Home Sales Volume (units)									(15.8	)%		17.9	%			2.3	%		3.9	%
Months of Inventory									1.9			0.8				1.4			2.5
								Monthly Visitor Arrivals,							Percentage Change
(in thousands)								Not Seasonally Adjusted							from Previous Year
Tourism 5
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												613.4							233.8
October 31, 2021												550.8							618.2
September 30, 2021												505.9							2,647.9
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	)
December 31, 2020												235.8							(75.2	)
November 30, 2020												183.8							(77.3	)
October 31, 2020												76.7							(90.4	)
September 30, 2020												18.4							(97.5	)
August 31, 2020												23.4							(97.5	)
July 31, 2020												22.6							(97.7	)
June 30, 2020												17.1							(98.2	)
May 31, 2020												9.1							(98.9	)
April 30, 2020												4.6							(99.5	)
March 31, 2020												434.9							(53.7	)
February 29, 2020												828.1							5.8
January 31, 2020												862.6							5.1

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/20221024005301/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 Hawaii Corporation

FAQ

What were Bank of Hawai‘i's earnings per share for Q3 2022?

Bank of Hawai‘i reported diluted earnings per share of $1.28 for Q3 2022.

How did Bank of Hawai‘i's net income change in Q3 2022?

Net income for Q3 2022 was $52.8 million, down 7.1% from Q2 2022.

What is the dividend declared by Bank of Hawai‘i for Q3 2022?

The Board of Directors declared a dividend of $0.70 per share, payable on December 14, 2022.

What was the net interest margin for Bank of Hawai‘i in Q3 2022?

The net interest margin for Q3 2022 was 2.60%, an increase from previous quarters.

How much did noninterest income decrease in Q3 2022?

Noninterest income decreased by 27.3% from Q2 2022.