Bank of Hawaii Corporation Third Quarter 2020 Financial Results

Rhea-AI Summary

Bank of Hawaii Corporation (NYSE: BOH) reported diluted earnings per share of $0.95 for Q3 2020, down from $1.29 in Q3 2019. Net income was $37.8 million, a decrease from $52.1 million a year ago. Loan balances were $11.8 billion, up 8.4% year-over-year, while total deposits reached a record high of $17.7 billion, increasing by 15.6% compared to Q3 2019. The return on average assets was 0.76%, down from 1.17% last year. A quarterly cash dividend of $0.67 per share was declared, payable on December 14, 2020.

Positive

• Record total deposits of $17.7 billion, up 15.6% from Q3 2019.
• Loan balances increased by 8.4% compared to September 2019.
• Noninterest expense decreased by $10.4 million year-over-year.

Negative

• Q3 2020 diluted EPS of $0.95, down from $1.29 in Q3 2019.
• Net income decreased to $37.8 million from $52.1 million in Q3 2019.
• Provision for credit losses rose significantly to $28.6 million in Q3 2020, compared to $4.3 million a year ago.

HONOLULU--(BUSINESS WIRE)--Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.95 for the third quarter of 2020 compared with diluted earnings per share of $0.98 in the previous quarter and diluted earnings per share of $1.29 in the same quarter last year. Net income for the third quarter of 2020 was $37.8 million compared with net income of $38.9 million in the second quarter of 2020 and net income of $52.1 million in the third quarter of 2019.

Loan and lease balances were $11.8 billion at September 30, 2020 down slightly from June 30, 2020, up 7.3 percent from December 31, 2019, and up 8.4 percent compared with September 30, 2019. Total deposits reached another record high of $17.7 billion at the end of the third quarter of 2020, an increase of 1.8 percent from June 30, 2020, up 12.4 percent from December 31, 2019, and up 15.6 percent compared with September 30, 2019.

“Our financial results for the third quarter largely reflect current conditions at the local, national and global level,” said Peter Ho, Chairman, President and CEO. “Our long-standing commitment to conservatism, liquidity and capital strength positions us relatively well to these extraordinary times.”

The return on average assets for the third quarter of 2020 was 0.76 percent, down from 0.82 percent in the previous quarter and 1.17 percent in the same quarter last year. The return on average equity for the third quarter of 2020 was 11.01 percent compared with 11.58 percent for the second quarter of 2020 and 16.02 percent for the third quarter of 2019. The efficiency ratio for the third quarter of 2020 was 54.22 percent compared with 49.95 percent in the previous quarter and 58.55 percent in the same quarter last year.

For the nine-month period ended September 30, 2020, net income was $111.5 million, down from net income of $167.8 million during the same period last year. Diluted earnings per share were $2.80 for the nine-month period in 2020 compared with diluted earnings per share of $4.11 for the same period in 2019. The return on average assets for the nine-month period ended September 30, 2020 was 0.78 percent compared with the return on average assets of 1.29 percent for the same nine months in 2019. The 2020 year-to-date return on average equity was 11.08 percent compared with 17.58 percent for the nine months ended September 30, 2019. The efficiency ratio for the nine-month period in 2020 was 53.33 percent compared with 56.16 percent in the same period last year.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the third quarter of 2020 was $124.5 million, a decrease of $2.5 million compared with $127.0 million in the second quarter of 2020 and a decrease of $0.7 million compared with $125.2 million in the third quarter of 2019. Net interest income in the second quarter of 2020 included an interest recovery of $2.9 million that increased the margin by 7 basis points. Net interest income, on a taxable equivalent basis, for the nine-month period in 2020 was $377.8 million, an increase of $2.1 million compared with net interest income of $375.7 million for the same period in 2019. Analyses of the changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin was 2.67 percent for the third quarter of 2020, down 16 basis points from 2.83 percent in the previous quarter and down 34 basis points from the net interest margin of 3.01 percent in the third quarter of 2019. The decrease is largely due to lower rates and higher levels of liquidity due to the strong deposit growth. The net interest margin for the nine-month period in 2020 was 2.82 percent compared with the net interest margin of 3.05 percent for the same nine-month period last year.

Results for the third quarter of 2020 included a provision for credit losses of $28.6 million compared with $40.4 million in the previous quarter and $4.3 million in the same quarter last year. The provision for credit losses for the nine-month period in 2020 was $102.6 million compared with a provision for credit losses of $11.3 million during the same period in 2019.

Noninterest income was $41.7 million in the third quarter of 2020, a decrease of $9.6 million compared with $51.3 million in the second quarter of 2020 and a decrease of $4.8 million compared with $46.5 million in the third quarter of 2019. There were no significant items in noninterest income during the third quarter of 2020 or the third quarter of 2019. Noninterest income during the second quarter of 2020 included a gain of $14.2 million related to a sale of Visa Class B shares. Adjusted for the sale of the Visa shares, the increase in noninterest income compared to the prior quarter was primarily due to higher fee income. The decline in noninterest revenue compared to the third quarter last year is due to lower fee income resulting from decreased customer and visitor activity related to the COVID-19 pandemic. Noninterest income for the nine-month period in 2020 was $139.2 million, an increase of $3.6 million compared with noninterest income of $135.6 million for the same period in 2019.

Noninterest expense was $89.9 million in the third quarter of 2020, an increase of $1.0 million compared with $88.9 million in the second quarter of 2020 and a decrease of $10.4 million compared with $100.3 million in the third quarter last year. Noninterest expense during the third quarter of 2020 included a gain of $1.9 million related to the sale of a branch building partially offset by $1.8 million in severance. There were no significant items in noninterest expense during the second quarter of 2020. Noninterest expense in the third quarter of 2019 included a $6.0 million increase in legal reserves. Noninterest expense for the nine-month period in 2020 was $275.2 million, a decrease of $10.9 million compared with noninterest expense of $286.1 million for the same period in 2019. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the third quarter of 2020 was 20.09 percent compared with 20.05 percent in the previous quarter and 22.08 percent in the same quarter last year. The effective tax rate for the nine-month period in 2020 was 19.34 percent compared with an effective tax rate of 20.89 percent during the same period last year.

The Company’s business segments are defined as Consumer Banking, Commercial Banking, and Treasury & Other. Results for the business segments are determined based on the Company’s internal financial management reporting process and organizational structure. Selected financial information is included in Tables 13a and 13b.

Asset Quality

The Company’s asset quality remained relatively stable during the third quarter of 2020. Total non-performing assets were $18.6 million at September 30, 2020 down from $22.7 million at June 30, 2020 and $21.6 million at September 30, 2019. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.16 percent, down from 0.19 percent at the end of the previous quarter and 0.20 percent at the end of the third quarter last year.

Accruing loans and leases past due 90 days or more were $9.6 million at September 30, 2020 compared with $8.9 million at June 30, 2020 and $6.1 million at September 30, 2019. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $58.7 million at September 30, 2020, compared with $59.7 million at June 30, 2020 and $46.2 million at September 30, 2019. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loan and lease charge-offs during the third quarter of 2020 were a net recovery of $1.5 million. Loan and lease charge-offs of $2.3 million during the quarter were fully offset by recoveries of $3.8 million. Net charge-offs during the second quarter of 2020 were $5.1 million or 0.18 percent annualized of total average loans and leases outstanding and comprised of $8.3 million in charge-offs and recoveries of $3.2 million. Net charge-offs during the third quarter of 2019 were $3.0 million or 0.11 percent annualized of total average loans and leases outstanding and comprised of $5.8 million in charge-offs and recoveries of $2.8 million. Net charge-offs during the nine-month period in 2020 were $7.4 million or 0.09 percent annualized of total average loans and leases outstanding compared with net charge-offs of $9.0 million or 0.11 percent annualized of total average loans and leases outstanding for the nine-month period in 2019.

The allowance for credit losses was $203.5 million at September 30, 2020 compared with $173.4 million at June 30, 2020 and $108.9 million at September 30, 2019. The ratio of the allowance for credit losses to total loans and leases was 1.73 percent at September 30, 2020 compared with 1.47 percent at June 30, 2020 and 1.00 percent at September 30, 2019. The reserve for unfunded commitments was $2.3 million at September 30, 2020 compared with $2.5 million at June 30, 2020 and $6.8 million at September 30, 2019. Details of loan and lease charge-offs, recoveries and components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets increased to $20.1 billion at September 30, 2020 compared with $19.8 billion at June 30, 2020 and $17.7 billion at September 30, 2019. Average total assets were $19.7 billion during the third quarter of 2020 compared with $19.2 billion during the previous quarter and $17.6 billion during the third quarter last year.

The investment securities portfolio was $6.4 billion at September 30, 2020, up from $6.0 billion at June 30, 2020 and $5.5 billion at September 30, 2019 due to strong growth in deposits that outpaced loan growth. The portfolio remains largely comprised of securities issued by U.S. government agencies and includes $3.2 billion in securities held to maturity and $3.2 billion in securities available for sale. The securities portfolio at June 30, 2020 included $3.3 billion in securities held to maturity and $2.7 billion in securities available for sale compared with $2.9 billion in securities held to maturity and $2.6 billion in securities available for sale at September 30, 2019.

Total loans and leases were $11.8 billion at September 30, 2020. Average total loans and leases were $11.7 billion during the third quarter of 2020 up slightly from the previous quarter and up 9.0 percent from $10.8 billion during the same quarter last year. The commercial loan portfolio was $5.0 billion at September 30, 2020, down $5.9 million or 0.1 percent from June 30, 2020, and up $860.1 million or 20.7 percent from September 30, 2019. The consumer loan portfolio was $6.8 billion at September 30, 2020, down $5.9 million or 0.1 percent from June 30, 2020, and up $52.2 million or 0.8 percent from September 30, 2019.

Total deposits were $17.7 billion at September 30, 2020. Average total deposits were $17.3 billion during the third quarter of 2020, up 3.5 percent from $16.7 billion during the previous quarter and up 12.7 percent from $15.3 billion during the same quarter last year. Consumer deposits increased to $8.9 billion at September 30, 2020, up $136.9 million or 1.6 percent from $8.8 billion at June 30, 2020 and up $1.0 billion or 12.8 percent from $7.9 billion at September 30, 2019. Commercial deposits were $7.2 billion at September 30, 2020, down $135.5 million or 1.9 percent from $7.3 billion at June 30, 2020 and were up $1.0 billion or 16.3 percent from $6.2 billion at September 30, 2019. Other deposits, including public funds, were $1.7 billion at September 30, 2020, an increase of $314.3 million or 23.1 percent from June 30, 2020 and up $381.7 million or 29.5 percent from September 30, 2019. Deposit balances are summarized in Tables 7a, 7b, and 10.

Total shareholders’ equity increased to $1.36 billion at September 30, 2020 compared with $1.35 billion at June 30, 2020 and $1.29 billion at September 30, 2019. There were no shares repurchased during the third quarter of 2020. The Tier 1 Capital Ratio at September 30, 2020 was 12.09 percent compared with 12.04 percent at June 30, 2020 and 12.33 percent at September 30, 2019. The Tier 1 leverage ratio at September 30, 2020 was 6.81 percent compared with 6.90 percent at June 30, 2020 and 7.32 percent at September 30, 2019.

The Company’s Board of Directors declared a quarterly cash dividend of $0.67 per share on the Company’s outstanding shares. The dividend will be payable on December 14, 2020 to shareholders of record at the close of business on November 30, 2020.

Conference Call Information

The Company will review its third quarter 2020 financial results today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time). The live call, including a slide presentation, will be accessible on the investor relations link of Company’s website, www.boh.com. The webcast link is https://edge.media-server.com/mmc/p/xr9ecjhk. The toll-free number for the teleconference is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, October 26, 2020. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the conference ID 6164797 when prompted. 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", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. 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, 2019, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.

Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers, and governments in Hawaii and the West Pacific. The Company’s principal subsidiary, Bank of Hawaii, 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									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share amounts)	2020			2020			2019			2020			2019
For the Period:
Operating Results
Net Interest Income	$	124,166		$	126,691		$	124,896		$	376,823		$	373,830
Provision for Credit Losses		28,600			40,400			4,250			102,600			11,250
Total Noninterest Income		41,734			51,268			46,507			139,151			135,636
Total Noninterest Expense		89,949			88,892			100,349			275,153			286,131
Net Income		37,840			38,908			52,052			111,490			167,770
Basic Earnings Per Share		0.95			0.98			1.30			2.81			4.14
Diluted Earnings Per Share		0.95			0.98			1.29			2.80			4.11
Dividends Declared Per Share		0.67			0.67			0.65			2.01			1.92
Performance Ratios
Return on Average Assets		0.76	%		0.82	%		1.17	%		0.78	%		1.29	%
Return on Average Shareholders' Equity		11.01			11.58			16.02			11.08			17.58
Efficiency Ratio 1		54.22			49.95			58.55			53.33			56.16
Net Interest Margin 2		2.67			2.83			3.01			2.82			3.05
Dividend Payout Ratio 3		70.53			68.37			50.00			71.53			46.38
Average Shareholders' Equity to Average Assets		6.93			7.04			7.32			7.06			7.31
Average Balances
Average Loans and Leases	$	11,739,785		$	11,727,649		$	10,770,720		$	11,510,222		$	10,624,311
Average Assets		19,741,139			19,189,581			17,605,394			19,053,626			17,442,054
Average Deposits		17,270,206			16,679,511			15,330,691			16,591,640			15,156,275
Average Shareholders' Equity		1,367,756			1,351,345			1,289,417			1,344,402			1,275,753
Per Share of Common Stock
Book Value	$	33.99		$	33.76		$	32.00		$	33.99		$	32.00
Tangible Book Value		33.21			32.97			31.22			33.21			31.22
Market Value
Closing		50.52			61.41			85.93			50.52			85.93
High		61.94			72.74			88.20			95.53			88.20
Low		48.77			51.15			79.13			46.70			66.54
				September 30,			June 30,			December 31,			September 30,
				2020			2020			2019			2019
As of Period End:
Balance Sheet Totals
Loans and Leases				$	11,793,608		$	11,805,370		$	10,990,892		$	10,881,298
Total Assets					20,109,489			19,769,942			18,095,496			17,672,140
Total Deposits					17,738,883			17,423,155			15,784,482			15,340,752
Other Debt					60,502			60,524			85,565			110,585
Total Shareholders' Equity					1,361,739			1,352,082			1,286,832			1,291,490
Asset Quality
Non-Performing Assets				$	18,626		$	22,701		$	20,117		$	21,645
Allowance for Credit Losses					203,496			173,439			138,150			108,936
Allowance to Loans and Leases Outstanding					1.73	%		1.47	%		1.00	%		1.00	%
Capital Ratios 4
Common Equity Tier 1 Capital Ratio					12.09	%		12.04	%		12.18	%		12.33	%
Tier 1 Capital Ratio					12.09			12.04			12.18			12.33
Total Capital Ratio					13.35			13.29			13.28			13.44
Tier 1 Leverage Ratio					6.81			6.90			7.25			7.32
Total Shareholders' Equity to Total Assets					6.77			6.84			7.11			7.31
Tangible Common Equity to Tangible Assets 5					6.63			6.69			6.95			7.14
Tangible Common Equity to Risk-Weighted Assets 5					12.02			12.07			11.85			12.10
Non-Financial Data
Full-Time Equivalent Employees					2,038			2,112			2,124			2,124
Branches					67			67			68			67
ATMs					358			367			387			379

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 share divided by basic earnings per share.

4 Regulatory capital ratios as of September 30, 2020 are preliminary.

5 Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. 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)				2020			2020			2019			2019
Total Shareholders' Equity			$	1,361,739		$	1,352,082		$	1,286,832		$	1,291,490
Less: Goodwill				31,517			31,517			31,517			31,517
Tangible Common Equity			$	1,330,222		$	1,320,565		$	1,255,315		$	1,259,973
Total Assets			$	20,109,489		$	19,769,942		$	18,095,496		$	17,672,140
Less: Goodwill				31,517			31,517			31,517			31,517
Tangible Assets			$	20,077,972		$	19,738,425		$	18,063,979		$	17,640,623
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements			$	11,068,888		$	10,941,894		$	10,589,061		$	10,416,560
Total Shareholders' Equity to Total Assets				6.77	%		6.84	%		7.11	%		7.31	%
Tangible Common Equity to Tangible Assets (Non-GAAP)				6.63	%		6.69	%		6.95	%		7.14	%
Tier 1 Capital Ratio				12.09	%		12.04	%		12.18	%		12.33	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)				12.02	%		12.07	%		11.85	%		12.10	%
Note: Risk-Weighted Assets and Regulatory capital ratios as of September 30, 2020 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)		2020			2020		2019				2020		2019
Interest Income
Interest and Fees on Loans and Leases	$	103,189		$	107,628	$	110,877			$	319,027	$	329,789
Income on Investment Securities
Available-for-Sale		14,558			14,576		17,512				45,845		46,016
Held-to-Maturity		15,967			16,723		18,796				51,942		62,866
Deposits		3			1		9				13		33
Funds Sold		149			92		656				787		2,830
Other		151			125		233				494		762
Total Interest Income		134,017			139,145		148,083				418,108		442,296
Interest Expense
Deposits		5,891			7,954		18,055				28,105		51,967
Securities Sold Under Agreements to Repurchase		3,622			4,020		4,257				11,667		13,451
Funds Purchased		-			18		146				90		815
Short-Term Borrowings		1			22		1				62		38
Other Debt		337			440		728				1,361		2,195
Total Interest Expense		9,851			12,454		23,187				41,285		68,466
Net Interest Income		124,166			126,691		124,896				376,823		373,830
Provision for Credit Losses		28,600			40,400		4,250				102,600		11,250
Net Interest Income After Provision for Credit Losses		95,566			86,291		120,646				274,223		362,580
Noninterest Income
Trust and Asset Management		10,752			10,550		10,930				32,217		33,076
Mortgage Banking		4,047			4,278		4,864				11,020		10,487
Service Charges on Deposit Accounts		6,027			5,097		7,592				18,575		22,239
Fees, Exchange, and Other Service Charges		12,296			9,417		14,900				34,913		43,360
Investment Securities Gains (Losses), Net		(1,121	)		13,216		(1,469	)			11,125		(3,080	)
Annuity and Insurance		881			883		1,278				2,692		5,662
Bank-Owned Life Insurance		1,806			1,649		1,647				5,035		5,136
Other		7,046			6,178		6,765				23,574		18,756
Total Noninterest Income		41,734			51,268		46,507				139,151		135,636
Noninterest Expense
Salaries and Benefits		51,951			50,715		54,345				157,129		164,442
Net Occupancy		7,281			8,761		8,803				24,997		24,976
Net Equipment		9,223			8,195		7,637				25,874		21,365
Data Processing		4,691			4,416		4,676				13,895		13,929
Professional Fees		2,743			3,061		2,184				9,012		6,814
FDIC Insurance		1,282			1,558		1,257				4,296		3,816
Other		12,778			12,186		21,447				39,950		50,789
Total Noninterest Expense		89,949			88,892		100,349				275,153		286,131
Income Before Provision for Income Taxes		47,351			48,667		66,804				138,221		212,085
Provision for Income Taxes		9,511			9,759		14,752				26,731		44,315
Net Income	$	37,840		$	38,908	$	52,052			$	111,490	$	167,770
Basic Earnings Per Share	$	0.95		$	0.98	$	1.30			$	2.81	$	4.14
Diluted Earnings Per Share	$	0.95		$	0.98	$	1.29			$	2.80	$	4.11
Dividends Declared Per Share	$	0.67		$	0.67	$	0.65			$	2.01	$	1.92
Basic Weighted Average Shares		39,745,120			39,703,735		40,190,508				39,710,252		40,554,036
Diluted Weighted Average Shares		39,869,135			39,832,475		40,450,742				39,872,406		40,806,295

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income												Table 4
		Three Months Ended								Nine Months Ended
		September 30,			June 30,		September 30,			September 30,
(dollars in thousands)			2020			2020		2019			2020		2019
Net Income		$	37,840		$	38,908	$	52,052		$	111,490	$	167,770
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities		(4,900	)		7,730		5,405			44,389		28,533
	Defined Benefit Plans		374			374		245			1,122		736
Other Comprehensive Income (Loss)			(4,526	)		8,104		5,650			45,511		29,269
Comprehensive Income		$	33,314		$	47,012	$	57,702		$	157,001	$	197,039

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands)		2020			2020			2019			2019
Assets
Interest-Bearing Deposits in Other Banks	$	4,233		$	2,310		$	4,979		$	2,946
Funds Sold		736,524			800,857			254,574			108,446
Investment Securities
Available-for-Sale		3,190,313			2,726,478			2,619,003			2,594,394
Held-to-Maturity (Fair Value of $3,288,668; $3,374,294; $3,062,882; and $2,972,273)		3,198,830			3,276,829			3,042,294			2,946,910
Loans Held for Sale		-			20,711			39,062			36,720
Loans and Leases		11,793,608			11,805,370			10,990,892			10,881,298
Allowance for Credit Losses		(203,496	)		(173,439	)		(110,027	)		(108,936	)
Net Loans and Leases		11,590,112			11,631,931			10,880,865			10,772,362
Total Earning Assets		18,720,012			18,459,116			16,840,777			16,461,778
Cash and Due from Banks		260,167			242,423			299,105			259,492
Premises and Equipment, Net		199,021			198,582			188,388			179,453
Operating Lease Right-of-Use Assets		96,200			97,166			100,838			101,005
Accrued Interest Receivable		57,370			50,645			46,476			47,897
Foreclosed Real Estate		2,332			2,506			2,737			2,939
Mortgage Servicing Rights		21,887			22,904			25,022			24,408
Goodwill		31,517			31,517			31,517			31,517
Bank-Owned Life Insurance		291,231			291,185			287,962			286,936
Other Assets		429,752			373,898			272,674			276,715
Total Assets	$	20,109,489		$	19,769,942		$	18,095,496		$	17,672,140
Liabilities
Deposits
Noninterest-Bearing Demand	$	5,428,567		$	5,485,015		$	4,489,525		$	4,392,706
Interest-Bearing Demand		3,824,448			3,437,654			3,127,205			3,000,865
Savings		6,763,891			6,821,710			6,365,321			6,141,098
Time		1,721,977			1,678,776			1,802,431			1,806,083
Total Deposits		17,738,883			17,423,155			15,784,482			15,340,752
Securities Sold Under Agreements to Repurchase		602,106			603,206			604,306			604,299
Other Debt		60,502			60,524			85,565			110,585
Operating Lease Liabilities		103,869			104,741			108,210			108,264
Retirement Benefits Payable		43,505			43,833			44,504			39,682
Accrued Interest Payable		6,613			7,775			8,040			8,435
Taxes Payable and Deferred Taxes		12,124			38,297			16,085			21,089
Other Liabilities		180,148			136,329			157,472			147,544
Total Liabilities		18,747,750			18,417,860			16,808,664			16,380,650
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: September 30, 2020 - 58,248,690 / 40,060,675;
June 30, 2020 - 58,263,452 / 40,047,694; December 31, 2019 - 58,166,910 / 40,039,695;
and September 30, 2019 - 58,176,305 / 40,359,259)		580			580			579			579
Capital Surplus		588,632			586,946			582,566			580,200
Accumulated Other Comprehensive Gain (Loss)		14,399			18,925			(31,112	)		(21,774	)
Retained Earnings		1,797,763			1,786,351			1,761,415			1,730,437
Treasury Stock, at Cost (Shares: September 30, 2020 - 18,188,015; June 30, 2020 - 18,215,758;
December 31, 2019 - 18,127,215; and September 30, 2019 - 17,817,046)		(1,039,635	)		(1,040,720	)		(1,026,616	)		(997,952	)
Total Shareholders' Equity		1,361,739			1,352,082			1,286,832			1,291,490
Total Liabilities and Shareholders' Equity	$	20,109,489		$	19,769,942		$	18,095,496		$	17,672,140

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																Table 6
								Accum.
								Other
								Compre-
								hensive
	Common Shares			Common		Capital		Income			Retained			Treasury
(dollars in thousands)	Outstanding			Stock		Surplus		(Loss)			Earnings			Stock			Total
Balance as of December 31, 2019	40,039,695		$	579	$	582,566	$	(31,112	)	$	1,761,415		$	(1,026,616	)	$	1,286,832
Net Income	-			-		-		-			111,490			-			111,490
Other Comprehensive Income	-			-		-		45,511			-			-			45,511
Cumulative Change in Accounting Principle	-			-		-		-			3,632			-			3,632
Share-Based Compensation	-			-		5,347		-			-			-			5,347
Common Stock Issued under Purchase and Equity
Compensation Plans	222,682			1		719		-			1,762			4,878			7,360
Common Stock Repurchased	(201,702	)		-		-		-			-			(17,897	)		(17,897	)
Cash Dividends Declared ($2.01 per share)	-			-		-		-			(80,536	)		-			(80,536	)
Balance as of September 30, 2020	40,060,675		$	580	$	588,632	$	14,399		$	1,797,763		$	(1,039,635	)	$	1,361,739
Balance as of December 31, 2018	41,499,898		$	577	$	571,704	$	(51,043	)	$	1,641,314		$	(894,352	)	$	1,268,200
Net Income	-			-		-		-			167,770			-			167,770
Other Comprehensive Income	-			-		-		29,269			-			-			29,269
Share-Based Compensation	-			-		6,662		-			-			-			6,662
Common Stock Issued under Purchase and Equity
Compensation Plans	200,984			2		1,834		-			(109	)		4,275			6,002
Common Stock Repurchased	(1,341,623	)		-		-		-			-			(107,875	)		(107,875	)
Cash Dividends Declared ($1.92 per share)	-			-		-		-			(78,538	)		-			(78,538	)
Balance as of September 30, 2019	40,359,259		$	579	$	580,200	$	(21,774	)	$	1,730,437		$	(997,952	)	$	1,291,490

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																		Table 7a
		Three Months Ended						Three Months Ended						Three Months Ended
		September 30, 2020						June 30, 2020						September 30, 2019
		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		$	2.6	$	-	0.45	%	$	2.6	$	-	0.18	%	$	3.1	$	-	1.19	%
Funds Sold			584.2		0.1	0.10			545.9		0.1	0.07			121.1		0.7	2.12
Investment Securities
	Available-for-Sale
	Taxable		2,918.6		14.3	1.96			2,614.1		14.3	2.19			2,647.9		17.1	2.59
	Non-Taxable		25.8		0.3	4.22			32.2		0.4	4.45			42.6		0.5	4.45
	Held-to-Maturity
	Taxable		3,257.7		15.7	1.93			2,957.6		16.4	2.22			2,873.7		18.5	2.57
	Non-Taxable		54.1		0.4	2.66			54.4		0.4	2.66			65.2		0.4	2.72
Total Investment Securities			6,256.2		30.7	1.96			5,658.3		31.5	2.22			5,629.4		36.5	2.59
Loans Held for Sale			15.9		0.1	3.24			23.4		0.2	3.24			24.3		0.2	3.94
Loans and Leases 1
	Commercial and Industrial		1,917.0		14.1	2.93			1,963.8		17.9	3.67			1,383.8		14.4	4.14
	Commercial Mortgage		2,722.3		21.7	3.18			2,622.9		22.3	3.42			2,423.7		26.2	4.28
	Construction		234.0		2.1	3.60			255.8		2.5	3.93			126.0		1.6	5.10
	Commercial Lease Financing		110.7		0.5	1.82			110.9		0.5	1.88			161.8		1.0	2.57
	Residential Mortgage		3,988.7		36.7	3.68			3,939.6		36.0	3.65			3,809.6		36.5	3.83
	Home Equity		1,625.2		14.1	3.45			1,665.2		14.3	3.45			1,689.2		16.1	3.79
	Automobile		708.3		6.4	3.59			701.2		6.2	3.55			707.0		6.4	3.59
	Other 2		433.6		7.6	6.96			468.2		7.9	6.77			469.6		8.5	7.16
Total Loans and Leases			11,739.8		103.2	3.50			11,727.6		107.6	3.68			10,770.7		110.7	4.09
Other			33.3		0.2	1.81			34.0		0.1	1.47			35.0		0.3	2.66
Total Earning Assets 3			18,632.0		134.3	2.88			17,991.8		139.5	3.11			16,583.6		148.4	3.56
Cash and Due from Banks			234.3						302.4						231.5
Other Assets			874.8						895.4						790.3
Total Assets		$	19,741.1					$	19,189.6					$	17,605.4
Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	3,465.5		0.4	0.04		$	3,226.6		0.6	0.07		$	2,950.2		1.1	0.15
	Savings		6,886.0		1.7	0.10			6,691.4		2.2	0.13			6,122.0		8.8	0.57
	Time		1,568.3		3.8	0.97			1,826.8		5.2	1.13			1,851.0		8.2	1.75
Total Interest-Bearing Deposits			11,919.8		5.9	0.20			11,744.8		8.0	0.27			10,923.2		18.1	0.66
Short-Term Borrowings			-		-	-			57.6		-	0.28			27.1		0.1	2.13
Securities Sold Under Agreements to Repurchase			602.9		3.6	2.35			602.9		4.0	2.64			513.8		4.3	3.24
Other Debt			60.5		0.3	2.22			60.5		0.5	2.91			110.6		0.7	2.62
Total Interest-Bearing Liabilities			12,583.2		9.8	0.31			12,465.8		12.5	0.40			11,574.7		23.2	0.79
Net Interest Income				$	124.5					$	127.0					$	125.2
	Interest Rate Spread					2.57	%					2.71	%					2.77	%
	Net Interest Margin					2.67	%					2.83	%					3.01	%
Noninterest-Bearing Demand Deposits			5,350.4						4,934.7						4,407.5
Other Liabilities			439.7						437.8						333.8
Shareholders' Equity			1,367.8						1,351.3						1,289.4
Total Liabilities and Shareholders' Equity		$	19,741.1					$	19,189.6					$	17,605.4

1 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.

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

3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $295,000, $358,000, and $296,000 for the three months ended September 30, 2020, June 30, 2020, and September 30, 2019, respectively.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis												Table 7b
		Nine Months Ended						Nine Months Ended
		September 30, 2020						September 30, 2019
		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	2.2	$	-	0.76	%	$	3.0	$	-	1.49	%
Funds Sold			428.3		0.8	0.24			161.7		2.8	2.31
Investment Securities
	Available-for-Sale
	Taxable		2,745.7		45.1	2.19			2,086.5		43.0	2.75
	Non-Taxable		30.1		1.0	4.37			135.3		3.8	3.73
	Held-to-Maturity
	Taxable		3,084.4		51.0	2.21			3,199.9		59.9	2.50
	Non-Taxable		54.4		1.1	2.66			163.5		3.8	3.08
Total Investment Securities			5,914.6		98.2	2.21			5,585.2		110.5	2.64
Loans Held for Sale			20.8		0.5	3.35			18.5		0.6	4.06
Loans and Leases 1
	Commercial and Industrial		1,763.9		45.2	3.43			1,375.9		44.6	4.33
	Commercial Mortgage		2,631.9		69.2	3.51			2,373.9		76.9	4.33
	Construction		234.3		7.1	4.04			133.8		5.2	5.22
	Commercial Lease Financing		111.0		1.6	1.88			160.9		3.0	2.45
	Residential Mortgage		3,941.3		109.5	3.70			3,740.5		108.0	3.85
	Home Equity		1,656.8		43.6	3.51			1,691.4		48.4	3.83
	Automobile		710.2		19.0	3.57			688.0		18.6	3.62
	Other 2		460.8		23.9	6.93			459.9		24.8	7.21
Total Loans and Leases			11,510.2		319.1	3.70			10,624.3		329.5	4.14
Other			33.9		0.5	1.95			35.2		0.8	2.89
Total Earning Assets 3			17,910.0		419.1	3.12			16,427.9		444.2	3.61
Cash and Due from Banks			271.7						237.9
Other Assets			871.9						776.3
Total Assets		$	19,053.6					$	17,442.1
Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	3,268.1		1.9	0.08		$	2,930.9		4.0	0.18
	Savings		6,693.9		11.0	0.22			5,962.9		24.4	0.55
	Time		1,712.2		15.2	1.19			1,807.6		23.6	1.75
Total Interest-Bearing Deposits			11,674.2		28.1	0.32			10,701.4		52.0	0.65
Short-Term Borrowings			38.3		0.2	0.52			46.8		0.9	2.40
Securities Sold Under Agreements to Repurchase			603.4		11.6	2.54			507.5		13.4	3.50
Other Debt			62.6		1.4	2.90			113.7		2.2	2.58
Total Interest-Bearing Liabilities			12,378.5		41.3	0.44			11,369.4		68.5	0.80
Net Interest Income				$	377.8					$	375.7
	Interest Rate Spread					2.68	%					2.81	%
	Net Interest Margin					2.82	%					3.05	%
Noninterest-Bearing Demand Deposits			4,917.4						4,454.9
Other Liabilities			413.3						342.0
Shareholders' Equity			1,344.4						1,275.8
Total Liabilities and Shareholders' Equity		$	19,053.6					$	17,442.1

1 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.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1,010,000 and $1,878,000 for the nine months ended September 30, 2020 and September 30, 2019, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended September 30, 2020
	Compared to June 30, 2020
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Investment Securities
Available-for-Sale
Taxable	$	1.6		$	(1.6	)	$	-
Non-Taxable		(0.1	)		-			(0.1	)
Held-to-Maturity
Taxable		1.6			(2.3	)		(0.7	)
Total Investment Securities		3.1			(3.9	)		(0.8	)
Loans Held for Sale		(0.1	)		-			(0.1	)
Loans and Leases
Commercial and Industrial		(0.4	)		(3.4	)		(3.8	)
Commercial Mortgage		0.9			(1.5	)		(0.6	)
Construction		(0.2	)		(0.2	)		(0.4	)
Residential Mortgage		0.5			0.2			0.7
Home Equity		(0.2	)		-			(0.2	)
Automobile		0.1			0.1			0.2
Other 2		(0.5	)		0.2			(0.3	)
Total Loans and Leases		0.2			(4.6	)		(4.4	)
Other		-			0.1			0.1
Total Change in Interest Income		3.2			(8.4	)		(5.2	)
Change in Interest Expense:
Interest-Bearing Deposits
Demand		-			(0.2	)		(0.2	)
Savings		0.1			(0.6	)		(0.5	)
Time		(0.7	)		(0.7	)		(1.4	)
Total Interest-Bearing Deposits		(0.6	)		(1.5	)		(2.1	)
Securities Sold Under Agreements to Repurchase		-			(0.4	)		(0.4	)
Other Debt		-			(0.2	)		(0.2	)
Total Change in Interest Expense		(0.6	)		(2.1	)		(2.7	)
Change in Net Interest Income	$	3.8		$	(6.3	)	$	(2.5	)

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

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

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8b
	Three Months Ended September 30, 2020
	Compared to September 30, 2019
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	0.6		$	(1.2	)	$	(0.6	)
Investment Securities
Available-for-Sale
Taxable		1.6			(4.4	)		(2.8	)
Non-Taxable		(0.2	)		-			(0.2	)
Held-to-Maturity
Taxable		2.2			(5.0	)		(2.8	)
Total Investment Securities		3.6			(9.4	)		(5.8	)
Loans Held for Sale		(0.1	)		-			(0.1	)
Loans and Leases
Commercial and Industrial		4.6			(4.9	)		(0.3	)
Commercial Mortgage		2.9			(7.4	)		(4.5	)
Construction		1.1			(0.6	)		0.5
Commercial Lease Financing		(0.3	)		(0.2	)		(0.5	)
Residential Mortgage		1.7			(1.5	)		0.2
Home Equity		(0.6	)		(1.4	)		(2.0	)
Other 2		(0.6	)		(0.3	)		(0.9	)
Total Loans and Leases		8.8			(16.3	)		(7.5	)
Other		-			(0.1	)		(0.1	)
Total Change in Interest Income		12.9			(27.0	)		(14.1	)
Change in Interest Expense:
Interest-Bearing Deposits
Demand		0.2			(0.9	)		(0.7	)
Savings		1.0			(8.1	)		(7.1	)
Time		(1.2	)		(3.2	)		(4.4	)
Total Interest-Bearing Deposits		-			(12.2	)		(12.2	)
Short-Term Borrowings		(0.1	)		-			(0.1	)
Securities Sold Under Agreements to Repurchase		0.6			(1.3	)		(0.7	)
Other Debt		(0.3	)		(0.1	)		(0.4	)
Total Change in Interest Expense		0.2			(13.6	)		(13.4	)
Change in Net Interest Income	$	12.7		$	(13.4	)	$	(0.7	)

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, 2020
	Compared to September 30, 2019
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	2.0		$	(4.0	)	$	(2.0	)
Investment Securities
Available-for-Sale
Taxable		12.0			(9.9	)		2.1
Non-Taxable		(3.4	)		0.6			(2.8	)
Held-to-Maturity
Taxable		(2.1	)		(6.8	)		(8.9	)
Non-Taxable		(2.2	)		(0.5	)		(2.7	)
Total Investment Securities		4.3			(16.6	)		(12.3	)
Loans Held for Sale		0.1			(0.2	)		(0.1	)
Loans and Leases
Commercial and Industrial		11.1			(10.5	)		0.6
Commercial Mortgage		7.8			(15.5	)		(7.7	)
Construction		3.3			(1.4	)		1.9
Commercial Lease Financing		(0.8	)		(0.6	)		(1.4	)
Residential Mortgage		5.6			(4.1	)		1.5
Home Equity		(0.9	)		(3.9	)		(4.8	)
Automobile		0.6			(0.2	)		0.4
Other 2		-			(0.9	)		(0.9	)
Total Loans and Leases		26.7			(37.1	)		(10.4	)
Other		(0.1	)		(0.2	)		(0.3	)
Total Change in Interest Income		33.0			(58.1	)		(25.1	)
Change in Interest Expense:
Interest-Bearing Deposits
Demand		0.4			(2.5	)		(2.1	)
Savings		2.7			(16.1	)		(13.4	)
Time		(1.2	)		(7.2	)		(8.4	)
Total Interest-Bearing Deposits		1.9			(25.8	)		(23.9	)
Short-Term Borrowings		(0.1	)		(0.6	)		(0.7	)
Securities Sold Under Agreements to Repurchase		2.3			(4.1	)		(1.8	)
Other Debt		(1.1	)		0.3			(0.8	)
Total Change in Interest Expense		3.0			(30.2	)		(27.2	)
Change in Net Interest Income	$	30.0		$	(27.9	)	$	2.1

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)		2020		2020		2019			2020		2019
Salaries	$	34,046	$	32,739	$	33,458		$	100,271	$	98,772
Incentive Compensation		2,683		3,141		5,681			6,069		17,049
Share-Based Compensation		1,442		2,021		2,025			4,754		7,098
Commission Expense		1,800		1,647		1,760			4,821		4,394
Retirement and Other Benefits		4,164		4,446		4,185			13,316		13,872
Payroll Taxes		2,624		2,782		2,519			9,949		9,409
Medical, Dental, and Life Insurance		3,422		3,830		3,908			11,394		12,299
Separation Expense		1,770		109		809			6,555		1,549
Total Salaries and Benefits	$	51,951	$	50,715	$	54,345		$	157,129	$	164,442

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)			2020		2020		2020		2019		2019
Commercial
	Commercial and Industrial	$	1,908,482	$	1,956,939	$	1,558,232	$	1,379,152	$	1,361,011
	Commercial Mortgage		2,745,611		2,707,534		2,616,243		2,518,051		2,477,296
	Construction		250,943		245,099		245,390		194,170		154,754
	Lease Financing		111,831		113,187		110,704		122,454		163,672
Total Commercial			5,016,867		5,022,759		4,530,569		4,213,827		4,156,733
Consumer
	Residential Mortgage		4,044,228		3,989,393		3,928,183		3,891,100		3,846,511
	Home Equity		1,605,486		1,640,887		1,692,154		1,676,073		1,681,951
	Automobile		709,937		700,702		716,214		720,286		713,424
	Other 1		417,090		451,629		485,660		489,606		482,679
Total Consumer			6,776,741		6,782,611		6,822,211		6,777,065		6,724,565
Total Loans and Leases		$	11,793,608	$	11,805,370	$	11,352,780	$	10,990,892	$	10,881,298
Deposits
		September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)			2020		2020		2020		2019		2019
Consumer		$	8,903,808	$	8,766,885	$	8,294,464	$	8,118,494	$	7,893,454
Commercial			7,159,531		7,295,033		6,358,583		6,324,214		6,153,492
Public and Other			1,675,544		1,361,237		1,402,314		1,341,774		1,293,806
Total Deposits		$	17,738,883	$	17,423,155	$	16,055,361	$	15,784,482	$	15,340,752

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)				2020			2020			2020			2019			2019
Non-Performing Assets
Non-Accrual Loans and Leases
	Commercial
	Commercial and Industrial		$	475		$	459		$	634		$	830		$	573
	Commercial Mortgage			8,615			8,672			9,048			9,244			11,088
	Total Commercial			9,090			9,131			9,682			10,074			11,661
	Consumer
	Residential Mortgage			3,543			5,888			4,330			4,125			4,258
	Home Equity			3,661			5,176			4,086			3,181			2,787
	Total Consumer			7,204			11,064			8,416			7,306			7,045
Total Non-Accrual Loans and Leases				16,294			20,195			18,098			17,380			18,706
Foreclosed Real Estate				2,332			2,506			2,506			2,737			2,939
Total Non-Performing Assets			$	18,626		$	22,701		$	20,604		$	20,117		$	21,645
Accruing Loans and Leases Past Due 90 Days or More
Commercial
	Commercial and Industrial		$	-		$	-		$	-		$	-		$	81
Total Commercial				-			-			-			-			81
Consumer
	Residential Mortgage			6,607			4,937			3,024			1,839			2,032
	Home Equity			2,571			3,519			3,426			4,125			2,320
	Automobile			156			133			866			949			582
	Other 1			258			296			1,205			1,493			1,076
Total Consumer				9,592			8,885			8,521			8,406			6,010
Total Accruing Loans and Leases Past Due 90 Days or More			$	9,592		$	8,885		$	8,521		$	8,406		$	6,091
Restructured Loans on Accrual Status
	and Not Past Due 90 Days or More		$	58,650		$	59,713		$	61,425		$	63,103		$	46,178
Total Loans and Leases			$	11,793,608		$	11,805,370		$	11,352,780		$	10,990,892		$	10,881,298
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases				0.14	%		0.17	%		0.16	%		0.16	%		0.17	%
Ratio of Non-Performing Assets to Total Loans and Leases
	and Foreclosed Real Estate			0.16	%		0.19	%		0.18	%		0.18	%		0.20	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans
	and Leases and Commercial Foreclosed Real Estate			0.18	%		0.18	%		0.21	%		0.24	%		0.28	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
	and Leases and Consumer Foreclosed Real Estate			0.14	%		0.20	%		0.16	%		0.15	%		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			0.24	%		0.27	%		0.26	%		0.26	%		0.25	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter			$	22,701		$	20,604		$	20,117		$	21,645		$	21,782
Additions				938			5,856			1,754			883			1,035
Reductions
	Payments			(3,729	)		(2,736	)		(315	)		(495	)		(984	)
	Return to Accrual Status			(1,035	)		(822	)		(437	)		(1,673	)		-
	Sales of Foreclosed Real Estate			(175	)		-			(231	)		(201	)		-
	Charge-offs/Write-downs			(74	)		(201	)		(284	)		(42	)		(188	)
Total Reductions				(5,013	)		(3,759	)		(1,267	)		(2,411	)		(1,172	)
Balance at End of Quarter			$	18,626		$	22,701		$	20,604		$	20,117		$	21,645

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)				2020			2020			2019				2020			2019
Balance at Beginning of Period			$	175,958		$	141,467			114,494			$	116,849			113,515
CECL Adoption (Day 1) Impact				-			-			-				(5,072	)		-
Loans and Leases Charged-Off
	Commercial
	Commercial and Industrial			(171	)		(656	)		(239	)			(1,520	)		(815	)
	Commercial Mortgage			-			-			-				-			(1,616	)
	Consumer
	Residential Mortgage			-			(64	)		(7	)			(84	)		(62	)
	Home Equity			(43	)		(273	)		(215	)			(316	)		(655	)
	Automobile			(489	)		(3,114	)		(1,696	)			(6,103	)		(5,140	)
	Other 1			(1,644	)		(4,176	)		(3,598	)			(9,784	)		(9,424	)
Total Loans and Leases Charged-Off				(2,347	)		(8,283	)		(5,755	)			(17,807	)		(17,712	)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
	Commercial and Industrial			231			1,524			318				2,044			1,220
	Commercial Mortgage			-			-			-				40			-
	Consumer
	Residential Mortgage			414			118			649				795			1,228
	Home Equity			727			321			428				2,024			1,762
	Automobile			1,313			547			660				2,865			2,449
	Other 1			1,119			662			714				2,645			2,046
Total Recoveries on Loans and Leases Previously Charged-Off				3,804			3,172			2,769				10,413			8,705
Net Loans and Leases Recovered (Charged-Off)				1,457			(5,111	)		(2,986	)			(7,394	)		(9,007	)
Provision for Credit Losses				28,600			40,400			4,250				102,600			11,250
Provision for Unfunded Commitments				(202	)		(798	)		-				(1,170	)		-
Balance at End of Period 2			$	205,813		$	175,958		$	115,758			$	205,813		$	115,758
Components
Allowance for Credit Losses			$	203,496			173,439			108,936			$	203,496			108,936
Reserve for Unfunded Commitments				2,317			2,519			6,822				2,317			6,822
Total Reserve for Credit Losses			$	205,813		$	175,958		$	115,758			$	205,813		$	115,758
Average Loans and Leases Outstanding			$	11,739,785		$	11,727,649		$	10,770,720			$	11,510,222		$	10,624,311
Ratio of Net Loans and Leases Charged-Off (Recovered) to
	Average Loans and Leases Outstanding (annualized)			(0.05	%)		0.18	%		0.11	%			0.09	%		0.11	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding				1.73	%		1.47	%		1.00	%			1.73	%		1.00	%

1 Comprised of other revolving credit, installment, and lease financing.
2 Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.

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, 2020
Net Interest Income	$	73,868		$	47,797		$	2,501		$	124,166
Provision for Credit Losses		(1,372	)		(85	)		30,057			28,600
Net Interest Income (Loss) After Provision for Credit Losses		75,240			47,882			(27,556	)		95,566
Noninterest Income		31,776			7,672			2,286			41,734
Noninterest Expense		(69,408	)		(15,430	)		(5,111	)		(89,949	)
Income (Loss) Before Income Taxes		37,608			40,124			(30,381	)		47,351
Provision for Income Taxes		(9,627	)		(9,784	)		9,900			(9,511	)
Net Income (Loss)	$	27,981		$	30,340		$	(20,481	)	$	37,840
Total Assets as of September 30, 2020	$	7,383,822		$	5,027,836		$	7,697,831		$	20,109,489
Three Months Ended September 30, 2019 1
Net Interest Income	$	76,289		$	46,791		$	1,816		$	124,896
Provision for Credit Losses		3,116			(130	)		1,264			4,250
Net Interest Income After Provision for Credit Losses		73,173			46,921			552			120,646
Noninterest Income		36,627			8,739			1,141			46,507
Noninterest Expense		(75,198	)		(21,330	)		(3,821	)		(100,349	)
Income (Loss) Before Income Taxes		34,602			34,330			(2,128	)		66,804
Provision for Income Taxes		(8,506	)		(8,560	)		2,314			(14,752	)
Net Income	$	26,096		$	25,770		$	186		$	52,052
Total Assets as of September 30, 2019 1	$	6,993,290		$	4,145,717		$	6,533,133		$	17,672,140

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

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, 2020 1
Net Interest Income	$	221,003		$	144,253		$	11,567		$	376,823
Provision for Credit Losses		8,215			(819	)		95,204			102,600
Net Interest Income (Loss) After Provision for Credit Losses		212,788			145,072			(83,637	)		274,223
Noninterest Income		93,309			26,483			19,359			139,151
Noninterest Expense		(210,744	)		(47,552	)		(16,857	)		(275,153	)
Income (Loss) Before Income Taxes		95,353			124,003			(81,135	)		138,221
Provision for Income Taxes		(24,235	)		(30,278	)		27,782			(26,731	)
Net Income (Loss)	$	71,118		$	93,725		$	(53,353	)	$	111,490
Total Assets as of September 30, 2020	$	7,383,822		$	5,027,836		$	7,697,831		$	20,109,489
Nine Months Ended September 30, 2019 1
Net Interest Income	$	229,704		$	139,784		$	4,342		$	373,830
Provision for Credit Losses		7,866			1,141			2,243			11,250
Net Interest Income After Provision for Credit Losses		221,838			138,643			2,099			362,580
Noninterest Income		107,072			22,738			5,826			135,636
Noninterest Expense		(213,168	)		(63,545	)		(9,418	)		(286,131	)
Income Before Income Taxes		115,742			97,836			(1,493	)		212,085
Provision for Income Taxes		(28,745	)		(22,507	)		6,937			(44,315	)
Net Income	$	86,997		$	75,329		$	5,444		$	167,770
Total Assets as of September 30, 2019 1	$	6,993,290		$	4,145,717		$	6,533,133		$	17,672,140

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)		2020				2020			2020				2019				2019
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	103,189			$	107,628		$	108,210			$	109,223			$	110,877
Income on Investment Securities
Available-for-Sale		14,558				14,576			16,711				16,158				17,512
Held-to-Maturity		15,967				16,723			19,252				18,750				18,796
Deposits		3				1			9				8				9
Funds Sold		149				92			546				723				656
Other		151				125			218				239				233
Total Interest Income		134,017				139,145			144,946				145,101				148,083
Interest Expense
Deposits		5,891				7,954			14,260				16,407				18,055
Securities Sold Under Agreements to Repurchase		3,622				4,020			4,025				4,071				4,257
Funds Purchased		-				18			72				25				146
Short-Term Borrowings		1				22			39				-				1
Other Debt		337				440			584				713				728
Total Interest Expense		9,851				12,454			18,980				21,216				23,187
Net Interest Income		124,166				126,691			125,966				123,885				124,896
Provision for Credit Losses		28,600				40,400			33,600				4,750				4,250
Net Interest Income After Provision for Credit Losses		95,566				86,291			92,366				119,135				120,646
Noninterest Income
Trust and Asset Management		10,752				10,550			10,915				11,157				10,930
Mortgage Banking		4,047				4,278			2,695				3,199				4,864
Service Charges on Deposit Accounts		6,027				5,097			7,451				7,835				7,592
Fees, Exchange, and Other Service Charges		12,296				9,417			13,200				14,533				14,900
Investment Securities Gains (Losses), Net		(1,121	)			13,216			(970	)			(906	)			(1,469	)
Annuity and Insurance		881				883			928				1,272				1,278
Bank-Owned Life Insurance		1,806				1,649			1,580				1,879				1,647
Other		7,046				6,178			10,350				8,733				6,765
Total Noninterest Income		41,734				51,268			46,149				47,702				46,507
Noninterest Expense
Salaries and Benefits		51,951				50,715			54,463				51,664				54,345
Net Occupancy		7,281				8,761			8,955				8,824				8,803
Net Equipment		9,223				8,195			8,456				7,930				7,637
Data Processing		4,691				4,416			4,788				4,828				4,676
Professional Fees		2,743				3,061			3,208				3,257				2,184
FDIC Insurance		1,282				1,558			1,456				1,376				1,257
Other		12,778				12,186			14,986				15,217				21,447
Total Noninterest Expense		89,949				88,892			96,312				93,096				100,349
Income Before Provision for Income Taxes		47,351				48,667			42,203				73,741				66,804
Provision for Income Taxes		9,511				9,759			7,461				15,598				14,752
Net Income	$	37,840			$	38,908		$	34,742			$	58,143			$	52,052
Basic Earnings Per Share	$	0.95			$	0.98		$	0.88			$	1.46			$	1.30
Diluted Earnings Per Share	$	0.95			$	0.98		$	0.87			$	1.45			$	1.29
Balance Sheet Totals
Loans and Leases	$	11,793,608			$	11,805,370		$	11,352,780			$	10,990,892			$	10,881,298
Total Assets		20,109,489				19,769,942			18,542,233				18,095,496				17,672,140
Total Deposits		17,738,883				17,423,155			16,055,361				15,784,482				15,340,752
Total Shareholders' Equity		1,361,739				1,352,082			1,327,929				1,286,832				1,291,490
Performance Ratios
Return on Average Assets		0.76		%		0.82	%		0.77		%		1.29		%		1.17		%
Return on Average Shareholders' Equity		11.01				11.58			10.64				17.84				16.02
Efficiency Ratio 1		54.22				49.95			55.96				54.26				58.55
Net Interest Margin 2		2.67				2.83			2.96				2.95				3.01

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
($ in millions; jobs in thousands)	August 31, 2020					December 31, 2019							December 31, 2018
Hawaii Economic Trends
State General Fund Revenues 1	$	4,406.3	(11.1	)	%	$	7,316.5			5.5		%	$	6,933.1			6.9		%
General Excise and Use Tax Revenue 1	$	2,118.7	(13.3	)	%	$	3,602.2			5.1		%	$	3,426.5			2.3		%
Jobs 2		557.2					648.9							649.0
										August 31,			December 31,
(spot rates)										2020						2019	2018
Unemployment 3
Statewide, seasonally adjusted										12.5		%		2.7		%	2.6		%
Oahu										10.6				2.1			2.2
Island of Hawaii										11.8				2.8			2.9
Maui										20.7				2.2			2.2
Kauai										17.8				2.4			2.3
						September 30,				December 31,
(percentage change, except months of inventory)							2020			2019				2018			2017
Housing Trends (Single Family Oahu) 4
Median Home Price							3.3		%	(0.1	)	%		4.6		%	2.7		%
Home Sales Volume (units)							(1.4	)	%	3.9		%		(7.7	)	%	6.3		%
Months of Inventory							1.9			2.5				2.8			2.1
						Monthly Visitor Arrivals,							Percentage Change
(in thousands)						Not Seasonally Adjusted							from Previous Year
Tourism 5
August 31, 2020										22.3							(97.6	)
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
December 31, 2019										954.3							6.0
November 30, 2019										811.4							4.2
October 31, 2019										800.4							4.8
September 30, 2019										741.3							3.5
August 31, 2019										926.4							9.6
July 31, 2019										995.2							5.9
June 30, 2019										951.6							6.1
May 31, 2019										841.4							4.6
April 30, 2019										856.3							6.6
March 31, 2019										939.1							3.9
February 28, 2019										782.7							0.5
January 31, 2019										820.6							3.0
December 31, 2018										900.2							2.3
November 30, 2018										778.5							3.9
October 31, 2018										763.7							3.5
September 30, 2018										716.1							2.2
August 31, 2018										845.1							3.2
July 31, 2018										939.4							5.3
June 30, 2018										897.1							7.3
May 31, 2018										804.1							7.0
April 30, 2018										803.0							6.6
March 31, 2018										903.6							12.5
February 28, 2018										778.6							10.3
January 31, 2018										796.5							5.4

1 Source: Hawaii Department of Business, Economic Development & Tourism

2 Source: U. S. Bureau of Labor Statistics

3 Source: Hawaii Department of Labor and Industrial Relations, County jobs data not seasonally adjusted.

4 Source: Honolulu Board of REALTORS

5 Source: Hawaii Tourism Authority