Bank of Hawaii Corporation Second Quarter 2022 Financial Results

Rhea-AI Summary

Bank of Hawaii Corporation (NYSE: BOH) announced diluted earnings per common share of $1.38 for Q2 2022, a slight increase from $1.32 in Q1 2022 but down from $1.68 in Q2 2021. Net income was $56.9 million, up 3.7% sequentially but down 15.8% year-over-year. The company declared a $0.70 dividend per share. Key metrics showed an increase in net interest income to $132.9 million, driven by strong loan growth despite a decrease in noninterest income. Asset quality remained solid, with non-performing assets at 0.12% of total loans.

Positive

• Diluted earnings per share increased to $1.38 from $1.32 in Q1 2022.
• Net interest income rose by 6.1% from Q1 2022 to $132.9 million.
• Total deposits reached a record high of $21.0 billion, a 1.5% increase from Q1 2022.

Negative

• Net income decreased by 15.8% year-over-year to $56.9 million.
• Noninterest income fell by 3.2% from Q1 2022, and 5.1% from Q2 2021.
• The allowance for credit losses decreased by $31.9 million from Q2 2021.

• Diluted Earnings Per Common Share $1.38
• Net Income $56.9 Million
• Board of Directors Declares Dividend of $0.70 Per Common Share

HONOLULU--(BUSINESS WIRE)-- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per common share of $1.38 for the second quarter of 2022, compared with diluted earnings per common share of $1.32 in the previous quarter and $1.68 in the same quarter last year. Net income for the second quarter of 2022 was $56.9 million, up 3.7% from the first quarter of 2022 and down 15.8% from the second quarter of 2021. The decrease from the second quarter of 2021 was primarily due to a smaller release of the allowance for credit losses and lower PPP income in the current quarter and one-time items in the second quarter of 2021.

“Bank of Hawaii performed well during the second quarter of 2022," said Peter Ho, Chairman, President, and CEO. “Net interest margin expanded, driven by robust core loan growth and higher interest rates. At the same time, asset quality continued its sound and stable trend, and capital and liquidity remained strong, positioning us well for the future.”

Financial Highlights

• The return on average assets for the second quarter of 2022 was 1.00% compared with 0.97% in the previous quarter and 1.23% in the same quarter of 2021.
• The return on average common equity for the second quarter of 2022 was 18.19% compared with 15.44% in the previous quarter and 19.61% in the same quarter of 2021.
• Net interest income for the second quarter of 2022 was $132.9 million, an increase of 6.1% from the first quarter of 2022 and an increase of 7.6% from the second quarter of 2021. Net interest margin was 2.47% in the second quarter of 2022, an increase of 13 basis points compared to the previous quarter and an increase of 10 basis points from the same quarter of 2021.
  • The increase in net interest income and margin in the second quarter of 2022 compared to prior periods was due to the higher rate environment and continued strong loan growth.
  • The second quarter of 2022 included $1.1 million of interest recoveries.
• The provision for credit losses for the second quarter of 2022 was a net benefit of $2.5 million compared with a net benefit of $5.5 million in the previous quarter and a net benefit of $16.1 million in the same quarter of 2021.
• Noninterest income was $42.2 million in the second quarter of 2022, a decrease of 3.2% from the previous quarter and a decrease of 5.1% from the same quarter of 2021.
  • Noninterest income in the second quarter of 2021 included a gain of $3.7 million related to the sale of investment securities.
• Noninterest expense was $102.9 million in the second quarter of 2022, a decrease of 0.9% from the previous quarter and an increase of 6.6% from the same quarter of 2021.
  • Compared to the same period in 2021, noninterest expense included the impact of higher salaries and benefits and occupancy expenses. Significant one-time items included in noninterest expense during the second quarter of 2021 were fees related to the early termination of FHLB advances and repurchase agreements of $3.2 million offset by a gain on the sale of property of $3.1 million.
• The effective tax rate for the second quarter of 2022 was 23.80% compared with 22.15% in the previous quarter and 22.84% during the same quarter of 2021.

Asset Quality

The Company’s overall asset quality continued to remain strong during the second quarter of 2022.

• Total non-performing assets were $15.5 million at June 30, 2022, down by $4.5 million from March 31, 2022 and down $3.5 million from June 30, 2021. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.12% at the end of the quarter, a decrease of 4 basis points from the end of both the prior quarter and same quarter of 2021.
• Net loan and lease charge-offs during the second quarter of 2022 were $0.6 million or 0.02% annualized of total average loans and leases outstanding.
  • Net loan and lease charge-offs for the second quarter of 2022 were comprised of charge-offs of $3.3 million partially offset by recoveries of $2.7 million.
  • Compared to the prior quarter, net loan and lease charge-offs decreased by $0.9 million or 3 basis points annualized on total average loans and leases outstanding.
  • Compared to the same quarter of 2021, net loan and lease charge-offs decreased by $0.6 million or 2 basis points annualized on total average loans and leases outstanding.
• The allowance for credit losses on loans and leases was $148.5 million at June 30, 2022, a decrease of $3.5 million from March 31, 2022 and a decrease of $31.9 million from June 30, 2021. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.15% at the end of the quarter, down 6 basis points from the end of the prior quarter and down 35 basis points from the end of the same quarter of 2021.

Balance Sheet

• Total assets were $23.2 billion at June 30, 2022, an increase of 1.0% from March 31, 2022 and an increase of 2.5% from June 30, 2021.
• The investment securities portfolio was $8.3 billion at June 30, 2022, a decrease of 5.4% from March 31, 2022 and an increase of 2.3% from June 30, 2021.
  • The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.
• Total loans and leases were $13.0 billion at June 30, 2022, an increase of 3.2% from March 31, 2022 and an increase of 7.6% from June 30, 2021.
  • Total loans and leases excluding PPP loans were $12.9 billion at June 30, 2022, an increase of 3.5% from March 31, 2022 and an increase of 12.1% from June 30, 2021.
• Total deposits reached a new record high of $21.0 billion at June 30, 2022, an increase of 1.5% from March 31, 2022 and an increase of 4.2% from June 30, 2021.

Capital and Dividends

• The Tier 1 Capital Ratio was 13.01% at June 30, 2022 compared with 13.22% at March 31, 2022 and 13.87% at June 30, 2021.
• The Tier 1 Leverage Ratio was 7.29% at June 30, 2022 compared with 7.30% at March 31, 2022 and 7.31% at June 30, 2021.
• The Company repurchased 131.0 thousand shares of common stock at a total cost of $10.0 million under its share repurchase program in the second quarter of 2022 at an average cost of $75.94 per share repurchased.
  • Total remaining buyback authority under the share repurchase program was $65.8 million at June 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 September 15, 2022 to shareholders of record at the close of business on August 31, 2022.
• On July 5, 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 August 1, 2022 to shareholders of record of the preferred stock at the close of business on July 18, 2022.

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 Hawaii Corporation's website, www.boh.com.

• The webcast can be accessed via the link below: https://register.vevent.com/register/BI5cab369e40f24955998dbcc8ff22bf70.
• A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawaii Time on Monday, July 25, 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 Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2021 and its Form 10-Q for the fiscal quarter ended March 31, 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 Hawaii 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 Hawaii Corporation, see the Company’s web site, www.boh.com.

Bank of Hawaii 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)		2022					2022					2021					2022					2021
For the Period:
Operating Results
Net Interest Income		$	132,902				$	125,263				$	123,514				$	258,165				$	244,083
Provision for Credit Losses			(2,500	)				(5,500	)				(16,100	)				(8,000	)				(30,400	)
Total Noninterest Income			42,158					43,551					44,431					85,709					87,401
Total Noninterest Expense			102,939					103,874					96,527					206,813					195,392
Net Income			56,862					54,834					67,533					111,696					127,482
Basic Earnings Per Common Share			1.38					1.33					1.69					2.71					3.20
Diluted Earnings Per Common Share			1.38					1.32					1.68					2.70					3.18
Dividends Declared Per Common Share			0.70					0.70					0.67					1.40					1.34
Performance Ratios
Return on Average Assets			1.00		%			0.97		%			1.23		%			0.98		%			1.19		%
Return on Average Shareholders' Equity			16.40					14.18					19.17					15.23					18.43
Return on Average Common Equity 1			18.19					15.44					19.61					16.73					18.64
Efficiency Ratio 2			58.80					61.53					57.47					60.14					58.94
Net Interest Margin 3			2.47					2.34					2.37					2.41					2.40
Dividend Payout Ratio 4			50.72					52.63					39.64					51.66					41.88
Average Shareholders' Equity to Average Assets			6.08					6.87					6.40					6.47					6.45
Average Balances
Average Loans and Leases		$	12,700,825				$	12,290,402				$	12,096,308				$	12,496,747				$	12,024,844
Average Assets			22,891,262					22,847,488					22,073,569					22,869,496					21,614,669
Average Deposits			20,569,363					20,426,076					19,698,285					20,498,115					19,184,607
Average Shareholders' Equity			1,390,653					1,568,725					1,412,924					1,479,197					1,395,197
Per Share of Common Stock
Book Value 1		$	29.09				$	31.50				$	34.68				$	29.09				$	34.68
Tangible Book Value 1			28.30					30.71					33.91					28.30					33.91
Market Value
Closing			74.40					83.92					84.22					74.40					84.22
High			84.93					92.38					95.95					92.38					99.10
Low			70.97					79.60					81.23					70.97					75.65
							June 30,					March 31,					December 31,					June 30,
							2022					2022					2021					2021
As of Period End:
Balance Sheet Totals
Loans and Leases							$	12,951,573				$	12,544,492				$	12,259,076				$	12,041,378
Total Assets								23,232,699					23,000,317					22,784,941					22,672,183
Total Deposits								21,025,681					20,716,287					20,360,108					20,169,709
Other Debt								10,343					10,367					10,391					10,437
Total Shareholders' Equity								1,348,746					1,448,885					1,611,611					1,583,531
Asset Quality
Non-Performing Assets							$	15,493				$	19,979				$	18,966				$	18,974
Allowance for Credit Losses - Loans and Leases								148,512					152,028					157,821					180,385
Allowance to Loans and Leases Outstanding 5								1.15		%			1.21		%			1.29		%			1.50		%
Capital Ratios 6
Common Equity Tier 1 Capital Ratio								11.66		%			11.83		%			12.12		%			12.36		%
Tier 1 Capital Ratio								13.01					13.22					13.56					13.87
Total Capital Ratio								14.14					14.41					14.81					15.13
Tier 1 Leverage Ratio								7.29					7.30					7.32					7.31
Total Shareholders' Equity to Total Assets								5.81					6.30					7.07					6.98
Tangible Common Equity to Tangible Assets 1, 7								4.90					5.39					6.15					6.06
Tangible Common Equity to Risk-Weighted Assets 1, 7								8.72					9.77					11.44					11.81
Non-Financial Data
Full-Time Equivalent Employees								2,114					2,084					2,056					2,085
Branches								54					54					54					54
ATMs								310					307					307					312
1 Return on Average Common Equity was revised from 19.60% for the three months ended June 30, 2021 and 18.63% for the six months ended June 30, 2021; Book Value was revised from $34.80 for the three months ended and six months ended June 30, 2021; Tangible Book Value was revised from $34.02 for the three months ended and six months ended June 30, 2021; Tangible Common Equity to Tangible Assets was revised from 6.08% for the three months ended June 30, 2021; Tangible Common Equity to Risk-Weighted Assets was revised from 11.85% for the three months ended June 30, 2021.
2 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
3 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
4 Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.
5 The numerator comprises the Allowance for Credit Losses - Loans and Leases.
6 Regulatory capital ratios as of June 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
		June 30,				March 31,				December 31,				June 30,
(dollars in thousands)		2022				2022				2021				2021
Total Shareholders' Equity		$	1,348,746			$	1,448,885			$	1,611,611			$	1,583,531
Less: Preferred Stock 1			180,000				180,000				180,000				180,000
Goodwill			31,517				31,517				31,517				31,517
Tangible Common Equity 1		$	1,137,229			$	1,237,368			$	1,400,094			$	1,372,014
Total Assets			23,232,699				23,000,317				22,784,941				22,672,183
Less: Goodwill			31,517				31,517				31,517				31,517
Tangible Assets		$	23,201,182			$	22,968,800			$	22,753,424			$	22,640,666
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements 2		$	13,035,674			$	12,663,646			$	12,236,805			$	11,614,522
Total Shareholders' Equity to Total Assets			5.81	%			6.30	%			7.07	%			6.98	%
Tangible Common Equity to Tangible Assets (Non-GAAP) 1			4.90	%			5.39	%			6.15	%			6.06	%
Tier 1 Capital Ratio 1			13.01	%			13.22	%			13.56	%			13.87	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1, 2			8.72	%			9.77	%			11.44	%			11.81	%
1 Preferred Stock was revised from $175,487 for the three months ended June 30, 2021; Tangible Common Equity was revised from $1,376,527 for the three months ended June 30, 2021; Tangible Common Equity to Tangible Assets (Non-GAAP) was revised from 6.08% for the three months ended June 30, 2021; Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) was revised from 11.85% for the three months ended June 30, 2021.
2 Regulatory capital ratios as of June 30, 2022 are preliminary.

Bank of Hawaii 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)		2022				2022				2021				2022				2021
Interest Income
Interest and Fees on Loans and Leases		$	101,663			$	94,439			$	100,894			$	196,102			$	200,193
Income on Investment Securities
Available-for-Sale			17,984				17,100				16,467				35,084				32,304
Held-to-Maturity			18,838				18,701				13,576				37,539				26,876
Deposits			5				4				-				9				7
Funds Sold			719				127				260				846				397
Other			353				202				182				555				367
Total Interest Income			139,562				130,573				131,379				270,135				260,144
Interest Expense
Deposits			3,535				2,353				4,152				5,888				8,481
Securities Sold Under Agreements to Repurchase			2,794				2,772				3,470				5,566				7,003
Funds Purchased			57				2				-				59				1
Short-Term Borrowings			92				-				-				92				-
Other Debt			182				183				243				365				576
Total Interest Expense			6,660				5,310				7,865				11,970				16,061
Net Interest Income			132,902				125,263				123,514				258,165				244,083
Provision for Credit Losses			(2,500	)			(5,500	)			(16,100	)			(8,000	)			(30,400	)
Net Interest Income After Provision for Credit Losses			135,402				130,763				139,614				266,165				274,483
Noninterest Income
Trust and Asset Management			11,457				11,276				11,682				22,733				22,960
Mortgage Banking			1,247				2,740				3,058				3,987				8,920
Service Charges on Deposit Accounts			7,309				7,272				6,065				14,581				12,193
Fees, Exchange, and Other Service Charges			14,193				12,952				13,807				27,145				27,414
Investment Securities Losses, Net			(1,295	)			(1,545	)			2,423				(2,840	)			1,220
Annuity and Insurance			870				791				911				1,661				1,613
Bank-Owned Life Insurance			2,658				2,349				2,063				5,007				3,980
Other			5,719				7,716				4,422				13,435				9,101
Total Noninterest Income			42,158				43,551				44,431				85,709				87,401
Noninterest Expense
Salaries and Benefits			57,769				59,924				56,161				117,693				112,412
Net Occupancy			9,930				9,826				5,047				19,756				14,137
Net Equipment			9,543				9,153				8,796				18,696				17,674
Data Processing			4,607				4,560				4,557				9,167				10,879
Professional Fees			3,542				3,258				3,114				6,800				6,520
FDIC Insurance			1,590				1,502				1,669				3,092				3,323
Other			15,958				15,651				17,183				31,609				30,447
Total Noninterest Expense			102,939				103,874				96,527				206,813				195,392
Income Before Provision for Income Taxes			74,621				70,440				87,518				145,061				166,492
Provision for Income Taxes			17,759				15,606				19,985				33,365				39,010
Net Income		$	56,862			$	54,834			$	67,533			$	111,696			$	127,482
Preferred Stock Dividends			1,969				1,969				-				3,938				-
Net Income Available to Common Shareholders		$	54,893			$	52,865			$	67,533			$	107,758			$	127,482
Basic Earnings Per Common Share		$	1.38			$	1.33			$	1.69			$	2.71			$	3.20
Diluted Earnings Per Common Share		$	1.38			$	1.32			$	1.68			$	2.70			$	3.18
Dividends Declared Per Common Share		$	0.70			$	0.70			$	0.67			$	1.40			$	1.34
Basic Weighted Average Common Shares			39,693,593				39,752,679				39,902,583				39,722,985				39,865,268
Diluted Weighted Average Common Shares			39,842,608				39,956,391				40,122,905				39,896,700				40,096,527

Bank of Hawaii 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)		2022				2022				2021				2022				2021
Net Income		$	56,862			$	54,834			$	67,533			$	111,696			$	127,482
Other Comprehensive Loss, Net of Tax:
Net Unrealized Losses on Investment Securities			(122,647	)			(180,124	)			(123	)			(302,771	)			(50,173	)
Defined Benefit Plans			352				353				442				705				883
Other Comprehensive Income (Loss)			(122,295	)			(179,771	)			319				(302,066	)			(49,290	)
Comprehensive Income (Loss)		$	(65,433	)		$	(124,937	)		$	67,852			$	(190,370	)		$	78,192

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition														Table 5
		June 30,				March 31,				December 31,				June 30,
(dollars in thousands)		2022				2022				2021				2021
Assets
Interest-Bearing Deposits in Other Banks		$	2,264			$	2,488			$	2,571			$	2,584
Funds Sold			576,430				356,373				361,536				909,730
Investment Securities
Available-for-Sale			3,955,476				4,258,534				4,276,056				4,522,941
Held-to-Maturity (Fair Value of $3,823,739; $4,171,262; $4,646,619; and $3,965,117)			4,321,693				4,489,615				4,694,780				3,947,613
Loans Held for Sale			4,514				5,293				26,746				47,490
Loans and Leases			12,951,573				12,544,492				12,259,076				12,041,378
Allowance for Credit Losses			(148,512	)			(152,028	)			(157,821	)			(180,385	)
Net Loans and Leases			12,803,061				12,392,464				12,101,255				11,860,993
Total Earning Assets			21,663,438				21,504,767				21,462,944				21,291,351
Cash and Due from Banks			260,672				236,193				196,327				269,153
Premises and Equipment, Net			202,063				199,743				199,393				198,508
Operating Lease Right-of-Use Assets			91,901				93,563				95,621				97,264
Accrued Interest Receivable			47,141				45,392				45,242				47,046
Foreclosed Real Estate			2,332				2,332				2,332				2,332
Mortgage Servicing Rights			23,540				23,968				22,251				21,473
Goodwill			31,517				31,517				31,517				31,517
Bank-Owned Life Insurance			448,925				446,926				344,587				292,805
Other Assets			461,170				415,916				384,727				420,734
Total Assets		$	23,232,699			$	23,000,317			$	22,784,941			$	22,672,183
Liabilities
Deposits
Noninterest-Bearing Demand		$	7,374,055			$	7,500,741			$	7,275,287			$	6,570,232
Interest-Bearing Demand			4,339,520				4,591,178				4,628,567				4,498,825
Savings			8,054,899				7,701,849				7,456,165				7,704,575
Time			1,257,207				922,519				1,000,089				1,396,077
Total Deposits			21,025,681				20,716,287				20,360,108				20,169,709
Securities Sold Under Agreements to Repurchase			425,490				450,490				450,490				550,490
Other Debt			10,343				10,367				10,391				10,437
Operating Lease Liabilities			99,722				101,274				103,210				105,380
Retirement Benefits Payable			37,532				38,008				38,494				50,260
Accrued Interest Payable			2,545				2,545				2,499				3,879
Taxes Payable			10,607				17,265				11,901				11,844
Other Liabilities			272,033				215,196				196,237				186,653
Total Liabilities			21,883,953				21,551,432				21,173,330				21,088,652
Shareholders' Equity
Preferred Stock ($.01 par value; authorized 180,000 shares;
issued / outstanding: June 30, 2022; March 31, 2022; December 31, 2021;			180,000				180,000				180,000				180,000
and June 30, 2021 - 180,000)
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: June 30, 2022 - 58,727,909 / 40,182,659;
March 31, 2022 - 58,717,811 / 40,288,365; December 31, 2021 - 58,554,669 / 40,253,193;			582				582				581				580
and June 30, 2021 - 58,557,754 / 40,465,482)
Capital Surplus			611,694				607,061				602,508				594,261
Accumulated Other Comprehensive Loss			(368,448	)			(246,153	)			(66,382	)			(41,468	)
Retained Earnings			2,002,005				1,974,790				1,950,375				1,884,431
Treasury Stock, at Cost (Shares: June 30, 2022 - 18,545,250; March 31, 2022 - 18,429,446;
December 31, 2021 - 18,301,476; and June 30, 2021 - 18,092,272)			(1,077,087	)			(1,067,395	)			(1,055,471	)			(1,034,273	)
Total Shareholders' Equity			1,348,746				1,448,885				1,611,611				1,583,531
Total Liabilities and Shareholders' Equity		$	23,232,699			$	23,000,317			$	22,784,941			$	22,672,183

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		-			-		-				-			-				-				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
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		-			-		-				-			-				-				127,482				-				127,482
Other Comprehensive Loss		-			-		-				-			-				(49,290	)			-				-				(49,290	)
Share-Based Compensation		-			-		-				-			6,122				-				-				-				6,122
Preferred Stock Issued, Net		180,000			180,000		-				-			(4,513	)			-				-				-				175,487
Common Stock Issued under Purchase and
Equity Compensation Plans		-			-		383,326				-			1,292				-				(891	)			6,259				6,660
Common Stock Repurchased		-			-		(37,156	)			-			-				-				-				(3,298	)			(3,298	)
Cash Dividends Declared Common Stock
($1.34 per share)		-			-		-				-			-				-				(54,139	)			-				(54,139	)
Balance as of June 30, 2021		180,000		$	180,000		40,465,482			$	580		$	594,261			$	(41,468	)		$	1,884,431			$	(1,034,273	)		$	1,583,531

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
		June 30, 2022									March 31, 2022									June 30, 2021
		Average			Income/			Yield/			Average			Income/			Yield/			Average			Income/			Yield/
(dollars in millions)		Balance			Expense			Rate			Balance			Expense			Rate			Balance			Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	3.5		$	-		0.59	%		$	3.4		$	-		0.45	%		$	2.2		$	-		0.04	%
Funds Sold			273.5			0.7		1.04				238.5			0.1		0.21				946.2			0.3		0.11
Investment Securities
Available-for-Sale
Taxable			4,123.1			18.0		1.74				4,399.9			17.1		1.56				4,290.8			16.3		1.53
Non-Taxable			2.9			-		1.99				3.0			-		1.93				12.3			0.1		4.27
Held-to-Maturity
Taxable			4,377.0			18.7		1.71				4,567.4			18.6		1.63				3,496.2			13.4		1.53
Non-Taxable			35.7			0.2		2.10				35.8			0.2		2.10				41.5			0.3		2.53
Total Investment Securities			8,538.7			36.9		1.73				9,006.1			35.9		1.59				7,840.8			30.1		1.54
Loans Held for Sale			6.3			0.1		4.06				13.7			0.1		2.78				25.7			0.2		2.86
Loans and Leases 2
Commercial and Industrial			1,330.0			9.9		2.99				1,332.9			9.0		2.73				1,271.4			9.3		2.93
Paycheck Protection Program			38.7			0.5		5.26				89.0			1.8		8.33				663.1			7.5		4.55
Commercial Mortgage			3,357.2			26.2		3.13				3,158.8			21.7		2.80				2,883.5			21.3		2.96
Construction			222.6			2.4		4.39				227.6			2.1		3.68				285.6			2.6		3.66
Commercial Lease Financing			94.2			0.3		1.44				98.8			0.4		1.45				105.7			0.4		1.54
Residential Mortgage			4,445.7			36.4		3.26				4,343.3			34.9		3.21				4,234.3			35.6		3.35
Home Equity			2,032.9			14.4		2.85				1,898.9			13.3		2.83				1,573.4			12.1		3.09
Automobile			759.1			6.1		3.20				737.4			5.9		3.23				710.4			6.1		3.45
Other 3			420.4			5.6		5.38				403.7			5.5		5.47				368.9			6.0		6.53
Total Loans and Leases			12,700.8			101.8		3.21				12,290.4			94.6		3.10				12,096.3			100.9		3.34
Other			38.2			0.3		3.70				36.7			0.2		2.21				32.3			0.2		2.26
Total Earning Assets 4			21,561.0			139.8		2.60				21,588.8			130.9		2.44				20,943.5			131.7		2.52
Cash and Due from Banks			238.4									233.3									256.1
Other Assets			1,091.9									1,025.4									874.0
Total Assets		$	22,891.3								$	22,847.5								$	22,073.6
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand		$	4,442.2			0.7		0.06			$	4,655.4			0.5		0.04			$	4,452.4			0.7		0.07
Savings			7,692.8			1.9		0.10				7,540.6			1.1		0.06				7,533.0			1.8		0.09
Time			950.4			0.9		0.40				971.5			0.8		0.34				1,418.4			1.7		0.47
Total Interest-Bearing Deposits			13,085.4			3.5		0.11				13,167.5			2.4		0.07				13,403.8			4.2		0.12
Short-Term Borrowings			59.8			0.1		0.98				6.8			-		0.11				-			-		-
Securities Sold Under Agreements to Repurchase			447.7			2.8		2.47				450.5			2.8		2.46				570.3			3.5		2.41
Other Debt			10.4			0.3		7.05				10.4			0.2		7.05				30.2			0.2		3.22
Total Interest-Bearing Liabilities			13,603.3			6.7		0.20				13,635.2			5.4		0.16				14,004.3			7.9		0.22
Net Interest Income					$	133.1								$	125.5								$	123.8
Interest Rate Spread								2.40	%								2.28	%								2.30	%
Net Interest Margin								2.47	%								2.34	%								2.37	%
Noninterest-Bearing Demand Deposits			7,484.0									7,258.6									6,294.5
Other Liabilities			413.3									385.0									361.9
Shareholders' Equity			1,390.7									1,568.7									1,412.9
Total Liabilities and Shareholders' Equity		$	22,891.3								$	22,847.5								$	22,073.6
1 Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2 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.
3 Comprised of other consumer revolving credit, installment, and consumer lease financing.
4 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $221,000, $254,000, and $269,000 for the three months ended June 30, 2022, March 31, 2022, and June 30, 2021, respectively.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1														Table 7b
		Six Months Ended									Six Months Ended
		June 30, 2022									June 30, 2021
		Average			Income/			Yield/			Average			Income/			Yield/
(dollars in millions)		Balance			Expense			Rate			Balance			Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	3.5		$	-		0.52	%		$	2.7		$	-		0.56	%
Funds Sold			256.1			0.8		0.66				749.5			0.4		0.11
Investment Securities
Available-for-Sale
Taxable			4,260.6			35.1		1.65				4,150.2			32.1		1.55
Non-Taxable			3.0			-		1.96				12.3			0.3		4.27
Held-to-Maturity
Taxable			4,471.7			37.2		1.67				3,441.3			26.5		1.54
Non-Taxable			35.8			0.4		2.10				39.8			0.5		2.54
Total Investment Securities			8,771.1			72.7		1.66				7,643.6			59.4		1.55
Loans Held for Sale			10.0			0.2		3.19				25.9			0.4		2.81
Loans and Leases 2
Commercial and Industrial			1,331.5			18.9		2.86				1,295.4			19.0		2.96
Paycheck Protection Program			63.7			2.3		7.39				624.1			12.1		3.91
Commercial Mortgage			3,258.5			48.0		2.97				2,864.9			42.6		3.00
Construction			225.1			4.5		4.03				274.9			4.9		3.57
Commercial Lease Financing			96.5			0.7		1.44				106.1			0.8		1.48
Residential Mortgage			4,394.8			71.2		3.24				4,190.7			71.4		3.41
Home Equity			1,966.3			27.7		2.84				1,583.7			24.7		3.14
Automobile			748.3			11.9		3.22				709.3			12.2		3.48
Other 3			412.1			11.1		5.42				375.7			12.4		6.64
Total Loans and Leases			12,496.8			196.3		3.16				12,024.8			200.1		3.35
Other			37.3			0.6		2.97				32.9			0.4		2.24
Total Earning Assets 4			21,574.8			270.6		2.52				20,479.4			260.7		2.56
Cash and Due from Banks			235.8									263.4
Other Assets			1,058.9									871.9
Total Assets		$	22,869.5								$	21,614.7
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand		$	4,548.2			1.2		0.05			$	4,320.2			1.3		0.06
Savings			7,617.1			2.9		0.08				7,276.2			3.3		0.09
Time			960.9			1.8		0.37				1,523.6			3.9		0.52
Total Interest-Bearing Deposits			13,126.2			5.9		0.09				13,120.0			8.5		0.13
Short-Term Borrowings			33.5			0.2		0.89				1.2			-		0.09
Securities Sold Under Agreements to Repurchase			449.1			5.6		2.47				585.3			7.0		2.38
Other Debt			10.4			0.3		7.05				45.3			0.6		2.56
Total Interest-Bearing Liabilities			13,619.2			12.0		0.18				13,751.8			16.1		0.23
Net Interest Income					$	258.6								$	244.6
Interest Rate Spread								2.34	%								2.33	%
Net Interest Margin								2.41	%								2.40	%
Noninterest-Bearing Demand Deposits			7,371.9									6,064.6
Other Liabilities			399.2									403.1
Shareholders' Equity			1,479.2									1,395.2
Total Liabilities and Shareholders' Equity		$	22,869.5								$	21,614.7
1 Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2 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.
3 Comprised of other consumer revolving credit, installment, and consumer lease financing.
4 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $475,000 and $521,000 for six months ended June 30, 2022 and June 30, 2021, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8a
		Three Months Ended June 30, 2022
		Compared to March 31, 2022
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	-			$	0.6			$	0.6
Investment Securities
Available-for-Sale
Taxable			(1.1	)			2.0				0.9
Held-to-Maturity
Taxable			(0.8	)			0.9				0.1
Total Investment Securities			(1.9	)			2.9				1.0
Loans and Leases
Commercial and Industrial			-				0.9				0.9
Paycheck Protection Program			(0.8	)			(0.5	)			(1.3	)
Commercial Mortgage			1.6				2.9				4.5
Construction			-				0.3				0.3
Commercial Lease Financing			(0.1	)			-				(0.1	)
Residential Mortgage			0.9				0.6				1.5
Home Equity			1.0				0.1				1.1
Automobile			0.2				-				0.2
Other 2			0.2				(0.1	)			0.1
Total Loans and Leases			3.0				4.2				7.2
Other			-				0.1				0.1
Total Change in Interest Income			1.1				7.8				8.9
Change in Interest Expense:
Interest-Bearing Deposits
Demand			-				0.2				0.2
Savings			-				0.8				0.8
Time			-				0.1				0.1
Total Interest-Bearing Deposits			-				1.1				1.1
Short-Term Borrowings			-				0.1				0.1
Other Debt			-				0.1				0.1
Total Change in Interest Expense			-				1.3				1.3
Change in Net Interest Income		$	1.1			$	6.5			$	7.6
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 Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8b
		Three Months Ended June 30, 2022
		Compared to June 30, 2021
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	(0.3	)		$	0.7			$	0.4
Investment Securities
Available-for-Sale
Taxable			(0.6	)			2.3				1.7
Non-Taxable			(0.1	)			-				(0.1	)
Held-to-Maturity
Taxable			3.6				1.7				5.3
Non-Taxable			-				(0.1	)			(0.1	)
Total Investment Securities			2.9				3.9				6.8
Loans Held for Sale			(0.2	)			0.1				(0.1	)
Loans and Leases
Commercial and Industrial			0.4				0.2				0.6
Paycheck Protection Program			(8.0	)			1.0				(7.0	)
Commercial Mortgage			3.7				1.2				4.9
Construction			(0.7	)			0.5				(0.2	)
Commercial Lease Financing			-				(0.1	)			(0.1	)
Residential Mortgage			1.8				(1.0	)			0.8
Home Equity			3.3				(1.0	)			2.3
Automobile			0.4				(0.4	)			-
Other 2			0.8				(1.2	)			(0.4	)
Total Loans and Leases			1.7				(0.8	)			0.9
Other			-				0.1				0.1
Total Change in Interest Income			4.1				4.0				8.1
Change in Interest Expense:
Interest-Bearing Deposits
Savings			-				0.1				0.1
Time			(0.5	)			(0.3	)			(0.8	)
Total Interest-Bearing Deposits			(0.5	)			(0.2	)			(0.7	)
Short-Term Borrowings			0.1				-				0.1
Securities Sold Under Agreements to Repurchase			(0.8	)			0.1				(0.7	)
Other Debt			(0.1	)			0.2				0.1
Total Change in Interest Expense			(1.3	)			0.1				(1.2	)
Change in Net Interest Income		$	5.4			$	3.9			$	9.3
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 Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8c
		Six Months Ended June 30, 2022
		Compared to June 30, 2021
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	(0.4	)		$	0.8			$	0.4
Investment Securities
Available-for-Sale
Taxable			0.9				2.1				3.0
Non-Taxable			(0.2	)			(0.1	)			(0.3	)
Held-to-Maturity
Taxable			8.4				2.3				10.7
Non-Taxable			-				(0.1	)			(0.1	)
Total Investment Securities			9.1				4.2				13.3
Loans Held for Sale			(0.2	)			-				(0.2	)
Loans and Leases
Commercial and Industrial			0.6				(0.7	)			(0.1	)
Paycheck Protection Program			(15.8	)			6.0				(9.8	)
Commercial Mortgage			5.9				(0.5	)			5.4
Construction			(1.0	)			0.6				(0.4	)
Commercial Lease Financing			-				(0.1	)			(0.1	)
Residential Mortgage			3.4				(3.6	)			(0.2	)
Home Equity			5.5				(2.5	)			3.0
Automobile			0.7				(1.0	)			(0.3	)
Other 2			1.1				(2.4	)			(1.3	)
Total Loans and Leases			0.4				(4.2	)			(3.8	)
Other			0.1				0.1				0.2
Total Change in Interest Income			9.0				0.9				9.9
Change in Interest Expense:
Interest-Bearing Deposits
Demand			0.1				(0.2	)			(0.1	)
Savings			0.1				(0.5	)			(0.4	)
Time			(1.2	)			(0.9	)			(2.1	)
Total Interest-Bearing Deposits			(1.0	)			(1.6	)			(2.6	)
Short-Term Borrowings			0.2				-				0.2
Securities Sold Under Agreements to Repurchase			(1.6	)			0.2				(1.4	)
Other Debt			(0.8	)			0.5				(0.3	)
Total Change in Interest Expense			(3.2	)			(0.9	)			(4.1	)
Change in Net Interest Income		$	12.2			$	1.8			$	14.0
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									Six Months Ended
		June 30,			March 31,			June 30,			June 30,
(dollars in thousands)		2022			2022			2021			2022			2021
Salaries		$	36,721		$	34,932		$	33,413		$	71,653		$	64,982
Incentive Compensation			6,073			6,111			5,172			12,184			11,086
Share-Based Compensation			3,962			3,799			3,174			7,761			5,758
Commission Expense			1,232			1,641			2,599			2,873			5,035
Retirement and Other Benefits			4,036			4,693			5,289			8,729			10,806
Payroll Taxes			3,034			4,944			3,026			7,978			6,994
Medical, Dental, and Life Insurance			2,591			3,234			3,204			5,825			5,628
Separation Expense			120			570			284			690			2,123
Total Salaries and Benefits		$	57,769		$	59,924		$	56,161		$	117,693		$	112,412

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances														Table 10
		June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2022			2022			2021			2021			2021
Commercial
Commercial and Industrial		$	1,323,830		$	1,354,757		$	1,361,921		$	1,325,446		$	1,257,305
Paycheck Protection Program			31,964			57,809			126,779			268,480			513,513
Commercial Mortgage			3,464,126			3,257,689			3,152,130			2,994,520			2,944,435
Construction			246,177			248,363			220,254			296,052			277,393
Lease Financing			89,535			98,107			105,108			107,526			110,500
Total Commercial			5,155,632			5,016,725			4,966,192			4,992,024			5,103,146
Consumer
Residential Mortgage			4,486,571			4,405,718			4,309,602			4,272,540			4,264,180
Home Equity			2,101,612			1,958,285			1,836,588			1,680,229			1,594,781
Automobile			775,065			742,934			736,565			727,234			714,729
Other 1			432,693			420,830			410,129			400,723			364,542
Total Consumer			7,795,941			7,527,767			7,292,884			7,080,726			6,938,232
Total Loans and Leases		$	12,951,573		$	12,544,492		$	12,259,076		$	12,072,750		$	12,041,378
Deposits
		June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2022			2022			2021			2021			2021
Consumer		$	10,554,121		$	10,654,192		$	10,438,844		$	10,150,199		$	9,848,285
Commercial			8,824,609			8,818,477			8,641,932			8,767,733			8,675,909
Public and Other			1,646,951			1,243,618			1,279,332			1,575,746			1,645,515
Total Deposits		$	21,025,681		$	20,716,287		$	20,360,108		$	20,493,678		$	20,169,709
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
		June 30,				March 31,				December 31,				September 30,				June 30,
(dollars in thousands)		2022				2022				2021				2021				2021
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial		$	85			$	99			$	243			$	209			$	258
Commercial Mortgage			3,462				8,065				8,205				8,309				8,413
Total Commercial			3,547				8,164				8,448				8,518				8,671
Consumer
Residential Mortgage			5,179				3,845				3,305				4,348				2,437
Home Equity			4,435				5,638				4,881				5,422				5,534
Total Consumer			9,614				9,483				8,186				9,770				7,971
Total Non-Accrual Loans and Leases			13,161				17,647				16,634				18,288				16,642
Foreclosed Real Estate			2,332				2,332				2,332				2,332				2,332
Total Non-Performing Assets		$	15,493			$	19,979			$	18,966			$	20,620			$	18,974
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial		$	-			$	22			$	-			$	-			$	-
Total Commercial			-				22				-				-				-
Consumer
Residential Mortgage			2,638				4,113				3,159				4,776				4,069
Home Equity			2,029				2,722				3,456				2,946				4,498
Automobile			359				504				729				395				277
Other 1			508				649				426				593				434
Total Consumer			5,534				7,988				7,770				8,710				9,278
Total Accruing Loans and Leases Past Due 90 Days or More		$	5,534			$	8,010			$	7,770			$	8,710			$	9,278
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More		$	46,024			$	54,136			$	60,519			$	62,787			$	74,926
Total Loans and Leases		$	12,951,573			$	12,544,492			$	12,259,076			$	12,072,750			$	12,041,378
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.10	%			0.14	%			0.14	%			0.15	%			0.14	%
Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate			0.12	%			0.16	%			0.15	%			0.17	%			0.16	%
Ratio of Non-Performing Assets to Total Assets			0.06	%			0.07	%			0.07	%			0.08	%			0.07	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans
and Leases and Commercial Foreclosed Real Estate			0.07	%			0.16	%			0.17	%			0.17	%			0.17	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate			0.15	%			0.16	%			0.14	%			0.17	%			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			0.16	%			0.22	%			0.22	%			0.24	%			0.23	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter		$	19,979			$	18,966			$	20,620			$	18,974			$	17,883
Additions			2,293				2,243				357				3,171				2,229
Reductions
Payments			(5,511	)			(1,230	)			(972	)			(889	)			(722	)
Return to Accrual Status			(1,267	)			-				(1,038	)			(606	)			(416	)
Charge-offs/Write-downs			(1	)			-				(1	)			(30	)			-
Total Reductions			(6,779	)			(1,230	)			(2,011	)			(1,525	)			(1,138	)
Balance at End of Quarter		$	15,493			$	19,979			$	18,966			$	20,620			$	18,974
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												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
(dollars in thousands)		2022				2022				2021				2022				2021
Balance at Beginning of Period		$	157,264			$	164,297			$	203,779			$	164,297			$	221,303
Loans and Leases Charged-Off
Commercial
Commercial and Industrial			(233	)			(349	)			(456	)			(582	)			(704	)
Consumer
Residential Mortgage			(80	)			-				(115	)			(80	)			(119	)
Home Equity			(22	)			(68	)			(107	)			(90	)			(123	)
Automobile			(1,157	)			(1,530	)			(1,209	)			(2,687	)			(3,318	)
Other 1			(1,854	)			(1,961	)			(2,422	)			(3,815	)			(6,336	)
Total Loans and Leases Charged-Off			(3,346	)			(3,908	)			(4,309	)			(7,254	)			(10,600	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial			51				369				144				420				256
Consumer
Residential Mortgage			920				54				481				974				1,436
Home Equity			416				515				527				931				1,060
Automobile			684				739				1,172				1,423				2,091
Other 1			644				745				801				1,389				1,657
Total Recoveries on Loans and Leases Previously Charged-Off			2,715				2,422				3,125				5,137				6,500
Net Charged-Off - Loans and Leases			(631	)			(1,486	)			(1,184	)			(2,117	)			(4,100	)
Net Charged-Off - Accrued Interest Receivable			-				(47	)			(124	)			(47	)			(432	)
Provision for Credit Losses:
Loans and Leases			(2,885	)			(4,307	)			(16,774	)			(7,192	)			(31,767	)
Accrued Interest Receivable			-				(367	)			(828	)			(367	)			(828	)
Unfunded Commitments			350				(826	)			1,502				(476	)			2,195
Balance at End of Period		$	154,098			$	157,264			$	186,371			$	154,098			$	186,371
Components
Allowance for Credit Losses - Loans and Leases		$	148,512			$	152,028			$	180,385			$	148,512			$	180,385
Allowance for Credit Losses - Accrued Interest Receivable			-				-				1,440				-				1,440
Reserve for Unfunded Commitments			5,586				5,236				4,546				5,586				4,546
Total Reserve for Credit Losses		$	154,098			$	157,264			$	186,371			$	154,098			$	186,371
Average Loans and Leases Outstanding		$	12,700,825			$	12,290,402			$	12,096,308			$	12,496,747			$	12,024,844
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)			0.02	%			0.05	%			0.04	%			0.03	%			0.07	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 2			1.15	%			1.21	%			1.50	%			1.15	%			1.50	%
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 June 30, 2022
Net Interest Income		$	75,868			$	49,562			$	7,472			$	132,902
Provision for Credit Losses			502				(1	)			(3,001	)			(2,500	)
Net Interest Income After Provision for Credit Losses			75,366				49,563				10,473				135,402
Noninterest Income			31,953				8,279				1,926				42,158
Noninterest Expense			(82,740	)			(17,026	)			(3,173	)			(102,939	)
Income Before Income Taxes			24,579				40,816				9,226				74,621
Provision for Income Taxes			(6,162	)			(10,145	)			(1,452	)			(17,759	)
Net Income		$	18,417			$	30,671			$	7,774			$	56,862
Total Assets as of June 30, 2022		$	8,179,647			$	5,337,656			$	9,715,396			$	23,232,699
Three Months Ended June 30, 2021
Net Interest Income		$	71,167			$	49,038			$	3,309			$	123,514
Provision for Credit Losses			987				197				(17,284	)			(16,100	)
Net Interest Income After Provision for Credit Losses			70,180				48,841				20,593				139,614
Noninterest Income			32,600				6,575				5,256				44,431
Noninterest Expense			(72,868	)			(15,742	)			(7,917	)			(96,527	)
Income Before Income Taxes			29,912				39,674				17,932				87,518
Provision for Income Taxes			(7,365	)			(9,703	)			(2,917	)			(19,985	)
Net Income		$	22,547			$	29,971			$	15,015			$	67,533
Total Assets as of June 30, 2021		$	7,479,986			$	5,127,431			$	10,064,766			$	22,672,183

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
Six Months Ended June 30, 2022
Net Interest Income		$	146,103			$	95,911			$	16,151			$	258,165
Provision for Credit Losses			2,185				(198	)			(9,987	)			(8,000	)
Net Interest Income After Provision for Credit Losses			143,918				96,109				26,138				266,165
Noninterest Income			63,922				18,477				3,310				85,709
Noninterest Expense			(164,438	)			(35,695	)			(6,680	)			(206,813	)
Income Before Income Taxes			43,402				78,891				22,768				145,061
Provision for Income Taxes			(10,872	)			(19,342	)			(3,151	)			(33,365	)
Net Income		$	32,530			$	59,549			$	19,617			$	111,696
Total Assets as of June 30, 2022		$	8,179,647			$	5,337,656			$	9,715,396			$	23,232,699
Six Months Ended June 30, 2021
Net Interest Income		$	140,929			$	96,181			$	6,973			$	244,083
Provision for Credit Losses			3,853				247				(34,500	)			(30,400	)
Net Interest Income (Loss) After Provision for Credit Losses			137,076				95,934				41,473				274,483
Noninterest Income			66,298				14,433				6,670				87,401
Noninterest Expense			(151,049	)			(31,419	)			(12,924	)			(195,392	)
Income (Loss) Before Income Taxes			52,325				78,948				35,219				166,492
Provision for Income Taxes			(12,839	)			(19,261	)			(6,910	)			(39,010	)
Net Income (Loss)		$	39,486			$	59,687			$	28,309			$	127,482
Total Assets as of June 30, 2021		$	7,479,986			$	5,127,431			$	10,064,766			$	22,672,183

Bank of Hawaii 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)		2022					2022					2021					2021					2021
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases		$	101,663				$	94,439				$	97,853				$	100,570				$	100,894
Income on Investment Securities
Available-for-Sale			17,984					17,100					15,850					16,396					16,467
Held-to-Maturity			18,838					18,701					18,325					16,754					13,576
Deposits			5					4					1					2					-
Funds Sold			719					127					104					382					260
Other			353					202					176					159					182
Total Interest Income			139,562					130,573					132,309					134,263					131,379
Interest Expense
Deposits			3,535					2,353					2,898					3,837					4,152
Securities Sold Under Agreements to Repurchase			2,794					2,772					2,834					3,423					3,470
Funds Purchased			57					2					6					-					-
Short-Term Borrowings			92					-					-					-					-
Other Debt			182					183					183					184					243
Total Interest Expense			6,660					5,310					5,921					7,444					7,865
Net Interest Income			132,902					125,263					126,388					126,819					123,514
Provision for Credit Losses			(2,500	)				(5,500	)				(9,700	)				(10,400	)				(16,100	)
Net Interest Income After Provision for Credit Losses			135,402					130,763					136,088					137,219					139,614
Noninterest Income
Trust and Asset Management			11,457					11,276					11,693					11,415					11,682
Mortgage Banking			1,247					2,740					2,908					3,136					3,058
Service Charges on Deposit Accounts			7,309					7,272					6,861					6,510					6,065
Fees, Exchange, and Other Service Charges			14,193					12,952					14,439					13,604					13,807
Investment Securities Gains (Losses), Net			(1,295	)				(1,545	)				(1,258	)				(1,259	)				2,423
Annuity and Insurance			870					791					876					735					911
Bank-Owned Life Insurance			2,658					2,349					1,907					1,897					2,063
Other			5,719					7,716					5,148					5,340					4,422
Total Noninterest Income			42,158					43,551					42,574					41,378					44,431
Noninterest Expense
Salaries and Benefits			57,769					59,924					59,434					56,447					56,161
Net Occupancy			9,930					9,826					9,028					3,079					5,047
Net Equipment			9,543					9,153					9,105					8,924					8,796
Data Processing			4,607					4,560					4,696					4,722					4,557
Professional Fees			3,542					3,258					3,427					2,948					3,114
FDIC Insurance			1,590					1,502					1,619					1,594					1,669
Other			15,958					15,651					14,369					18,805					17,183
Total Noninterest Expense			102,939					103,874					101,678					96,519					96,527
Income Before Provision for Income Taxes			74,621					70,440					76,984					82,078					87,518
Provision for Income Taxes			17,759					15,606					13,147					20,025					19,985
Net Income		$	56,862				$	54,834				$	63,837				$	62,053				$	67,533
Preferred Stock Dividends			1,969					1,969					1,969					1,006					-
Net Income Available to Common Shareholders		$	54,893				$	52,865				$	61,868				$	61,047				$	67,533
Basic Earnings Per Common Share		$	1.38				$	1.33				$	1.56				$	1.53				$	1.69
Diluted Earnings Per Common Share		$	1.38				$	1.32				$	1.55				$	1.52				$	1.68
Balance Sheet Totals
Loans and Leases		$	12,951,573				$	12,544,492				$	12,259,076				$	12,072,750				$	12,041,378
Total Assets			23,232,699					23,000,317					22,784,941					22,965,383					22,672,183
Total Deposits			21,025,681					20,716,287					20,360,108					20,493,678					20,169,709
Total Shareholders' Equity			1,348,746					1,448,885					1,611,611					1,597,109					1,583,531
Performance Ratios
Return on Average Assets			1.00		%			0.97		%			1.12		%			1.07		%			1.23		%
Return on Average Shareholders' Equity			16.40					14.18					15.92					15.41					19.17
Return on Average Common Equity			18.19					15.44					17.40					17.08					19.61
Efficiency Ratio 1			58.80					61.53					60.18					57.38					57.47
Net Interest Margin 2			2.47					2.34					2.34					2.32					2.37
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
		Five Months Ended						Year Ended
(dollars in millions; jobs in thousands)		May 31, 2022						December 31, 2021								December 31, 2020
Hawaii Economic Trends
State General Fund Revenues 1		$	4,366.5		33.7	%		$	8,137.9				26.9	%		$	6,415.1			(12.3	)	%
General Excise and Use Tax Revenue 1			1,751.8		25.5				3,604.3				18.6				3,038.8			(15.6	)
Jobs 2			647.6						642.6								594.4
													May 31,			December 31,
													2022			2021				2020
Unemployment, seasonally adjusted 3
Statewide													4.2	%			4.3	%		9.8		%
Honolulu County													4.0				4.0			8.8
Hawaii County													4.5				4.1			9.2
Maui County													4.8				5.2			13.8
Kauai County													4.7				5.9			13.5
								June 30,					December 31,
(percentage change, except months of inventory)								2022					2021			2020				2019
Housing Trends (Single Family Oahu) 4
Median Home Price									17.0		%		19.3	%			5.2	%		(0.1	)	%
Home Sales Volume (units)									(8.8	)	%		17.9	%			2.3	%		3.9		%
Months of Inventory									1.5				0.8				1.4			2.5
								Monthly Visitor Arrivals,								Percentage Change
(in thousands)								Not Seasonally Adjusted								from Previous Year
Tourism 5
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													722.4							2,993.0
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/20220725005251/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 was Bank of Hawaii's diluted earnings per share for Q2 2022?

Bank of Hawaii reported diluted earnings per share of $1.38 for Q2 2022.

How much was the net income for Bank of Hawaii in Q2 2022?

The net income for Bank of Hawaii in Q2 2022 was $56.9 million.

What are the dividends declared by Bank of Hawaii for Q2 2022?

Bank of Hawaii declared a dividend of $0.70 per share for Q2 2022.

How did Bank of Hawaii's total deposits change in Q2 2022?

Total deposits for Bank of Hawaii reached $21.0 billion, a 1.5% increase from Q1 2022.

What was the trend in Bank of Hawaii's noninterest income for Q2 2022?

Noninterest income declined by 3.2% from Q1 2022 and 5.1% from Q2 2021.