Bank of Hawaii Corporation Third Quarter 2021 Financial Results

Rhea-AI Summary

Bank of Hawaii Corporation (NYSE: BOH) reported diluted earnings per common share of $1.52 for Q3 2021, down from $1.68 in Q2 and up from $0.95 a year ago. Net income reached $62.1 million, an 8.1% decline from the previous quarter but a 64.0% increase year-over-year. Total assets hit a record $23.0 billion, with total deposits growing 15.5% from last year. The board declared a quarterly dividend of $0.70 per share payable on December 14, 2021. Credit quality remained stable, though net interest margin decreased by 35 basis points year-over-year.

Positive

• Net income increased 64.0% from Q3 2020.
• Total assets grew 14.2% year-over-year to a record $23.0 billion.
• Strong consumer and commercial loan and deposit growth reported.
• Quarterly dividend declared at $0.70 per share.

Negative

• Diluted earnings per share decreased 9.5% from Q2 2021.
• Net income fell 8.1% from the previous quarter.
• Net interest margin declined 35 basis points year-over-year.

• Diluted Earnings Per Common Share $1.52
• Net Income $62.1 Million
• Board of Directors Declares Dividend of $0.70 Per Share

HONOLULU--(BUSINESS WIRE)-- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per common share of $1.52 for the third quarter of 2021, compared with diluted earnings per common share of $1.68 in the previous quarter and $0.95 in the same quarter last year. Net income for the third quarter of 2021 was $62.1 million, down 8.1% from the second quarter of 2021 and up 64.0% from the third quarter of 2020.

“Bank of Hawaii’s operating results were solid in the third quarter of 2021," said Peter Ho, Chairman, President, and CEO. “Core consumer and commercial loan and deposit growth was strong in the quarter. Credit quality in the quarter remained good.”

Financial Highlights

• The return on average assets for the third quarter of 2021 was 1.07% compared with 1.23% in the previous quarter and 0.76% in the same quarter last year.

• The return on average common equity for the third quarter of 2021 was 17.08% compared with 19.61% in the previous quarter and 11.01% in the same quarter last year.

• Net interest income for the third quarter of 2021 was $126.8 million, an increase of 2.7% from the second quarter of 2021 and an increase of 2.1% from the third quarter of 2020. Net interest margin was 2.32% in the third quarter of 2021, a decrease of 5 basis points from the previous quarter and 35 basis points from the same quarter last year.
  • The decrease in the net interest margin from prior year is largely due to higher levels of liquidity from continued strong deposit growth and lower interest rates, partially offset by higher fees from Paycheck Protection Program (“PPP”) loans, deployment of excess liquidity and core loan growth.

• The provision for credit losses for the third quarter of 2021 was a net benefit of $10.4 million compared with a net benefit of $16.1 million in the previous quarter and net expense of $28.6 million in the same quarter last year.

• Noninterest income was $41.4 million in the third quarter of 2021, a decrease of 6.9% from the second quarter of 2021 and a decrease of 0.9% from the third quarter of 2020.
  • One-time items in the second quarter of 2021 included a gain of $3.7 million related to the sale of investment securities.

• Noninterest expense was $96.5 million in the third quarter of 2021, flat to the second quarter of 2021 and an increase of 7.3% from the third quarter of 2020.
  • One-time significant items in the third quarter of 2021 included a gain of $6.3 million related to the sale of property partially offset by $3.8 million of fees related to the early termination of repurchase agreements and $1.2 million in severance.
  • One-time significant items in the second quarter of 2021 included 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.
  • One-time significant items in 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.

• The efficiency ratio during the third quarter of 2021 was 57.38% compared with 57.47% in the previous quarter and 54.22% during the same quarter last year.
  • The increase in the efficiency ratio from prior year is driven by an increase in noninterest expense.

• The effective tax rate for the third quarter of 2021 was 24.40% compared with 22.84% in the previous quarter and 20.09% during the same quarter last year.
  • The increase from same quarter prior year is primarily due to higher pretax book income compared to relatively stable tax adjustments and the delayed impact of the TCJA on the deductibility of deferred executive compensation.

Asset Quality

The Company’s overall asset quality continued to remain stable during the third quarter of 2021.

• Total non-performing assets were $20.6 million at September 30, 2021, up $1.6 million from June 30, 2021 and $2.0 million from September 30, 2020. Non-performing assets as percentage of total loans and leases and foreclosed real estate were 0.17% at the end of the quarter of 2021, up 1 basis point from the end of the prior quarter and the end of the same quarter last year.

• Net loan and lease charge-offs during the third quarter of 2021 were $1.2 million or 0.04% annualized of total average loans and leases outstanding.
  • Net loan and lease charge-offs for the third quarter of 2021 were comprised of charge-offs of $3.4 million partially offset by recoveries of $2.3 million.
  • Compared to the prior quarter, net loan and lease charge-offs were flat.
  • Compared to the third quarter of 2020, net loan and lease charge-offs increased by $2.7 million or 9 basis points annualized on total average loans and leases outstanding.

• The allowance for credit losses on loans and leases was $167.9 million at September 30, 2021, a decrease of $12.5 million from June 30, 2021 and $35.6 million from September 30, 2020. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.39% at the end of the quarter, down 11 basis points from the end of the prior quarter and 34 basis points from the end of the same quarter last year.

Balance Sheet

• Total assets increased to a new record of $23.0 billion at September 30, 2021, an increase of 1.3% from June 30, 2021 and 14.2% from September 30, 2020.

• The investment securities portfolio was $9.3 billion at September 30, 2021, up 9.2% from June 30, 2021 and 44.8% from September 30, 2020 due to growth in deposits that continued to outpace loan growth.
  • 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 $12.1 billion at September 30, 2021, an increase of 0.3% from June 30, 2021 and 2.4% from September 30, 2020.
  • Total loans excluding PPP loans were $11.8 billion at September 30, 2021, an increase of 2.4% from June 30, 2021 and an increase of 4.8% from September 30, 2020.

• Total deposits were $20.5 billion at September 30, 2021, an increase of 1.6% from June 30, 2021 and an increase of 15.5% from September 30, 2020.

• The Company early terminated $100.0 million of repurchase agreements in the third quarter of 2021.

Capital and Dividends

• The Tier 1 Capital Ratio was 13.47% at September 30, 2021 compared with 13.87% at June 30, 2021 and 12.09% at September 30, 2020.
  • The increase from the same quarter in the prior year was driven by the issuance of preferred stock in the second quarter of 2021.

• The Tier 1 Leverage Ratio was 7.10% at September 30, 2021 compared with 7.31% at June 30, 2021 and 6.81% at September 30, 2020.
  • The increase from the same quarter in the prior year was driven by the issuance of $180 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A in the second quarter of 2021.

• The Company repurchased 241.3 thousand shares of common stock at a total cost of $20.0 million under its share repurchase program in the third quarter of 2021 at an average cost of $82.89 per share repurchased.
  • Total remaining buyback authority under the share repurchase program was $93.1 million at September 30, 2021.

• The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on December 14, 2021 to shareholders of record at the close of business on November 30, 2021.

• On October 5, 2021, the Board of Directors declared the quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, on its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A. The depositary shares representing the Series A Preferred Stock are traded on the NYSE under the symbol “BOH.PRA.” The dividend will be payable on November 1, 2021 to shareholders of record of the preferred stock at the close of business on October 18, 2021.

Conference Call Information

The Company will review its third quarter financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawaii Corporation's website, www.boh.com.

• The webcast link is https://edge.media-server.com/mmc/p/3r3nw6ad
• 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 of the conference call will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, October 25, 2021. 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 6897518 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" (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, 2020 and its Form 10-Q for the fiscal quarters ended March 31, 2021 and June 30, 2021, 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 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)		2021			2021			2020			2021			2020
	For the Period:
	Operating Results
	Net Interest Income	$	126,819		$	123,514		$	124,166		$	370,902		$	376,823
	Provision for Credit Losses 1		(10,400	)		(16,100	)		28,600			(40,800	)		102,600
	Total Noninterest Income		41,378			44,431			41,734			128,779			139,151
	Total Noninterest Expense		96,519			96,527			89,949			291,911			275,153
	Net Income		62,053			67,533			37,840			189,535			111,490
	Basic Earnings Per Common Share		1.53			1.69			0.95			4.73			2.81
	Diluted Earnings Per Common Share		1.52			1.68			0.95			4.70			2.80
	Dividends Declared Per Common Share		0.70			0.67			0.67			2.04			2.01
	Performance Ratios
	Return on Average Assets		1.07	%		1.23	%		0.76	%		1.15	%		0.78	%
	Return on Average Shareholders' Equity		15.41			19.17			11.01			17.31			11.08
	Return on Average Common Equity 8		17.08			19.61			11.01			18.10			11.08
	Efficiency Ratio 2		57.38			57.47			54.22			58.42			53.33
	Net Interest Margin 3		2.32			2.37			2.67			2.37			2.82
	Dividend Payout Ratio 4		45.75			39.64			70.53			42.95			71.53
	Average Shareholders' Equity to Average Assets		6.95			6.40			6.93			6.63			7.06
	Average Balances
	Average Loans and Leases	$	11,958,321		$	12,096,308		$	11,739,785		$	12,002,426		$	11,510,222
	Average Assets		22,993,036			22,073,569			19,741,139			22,079,174			19,053,626
	Average Deposits		20,473,777			19,698,285			17,270,206			19,619,053			16,591,640
	Average Shareholders' Equity		1,598,076			1,412,924			1,367,756			1,463,566			1,344,402
	Per Share of Common Stock
	Book Value	$	35.30		$	34.80		$	33.99		$	35.30		$	33.99
	Tangible Book Value 8		34.38			33.91			33.21			34.38			33.21
	Market Value
	Closing		82.17			84.22			50.52			82.17			50.52
	High		87.12			95.95			61.94			99.10			95.53
	Low		75.68			81.23			48.77			75.65			46.70
						September 30,			June 30,			December 31,			September 30,
						2021			2021			2020			2020
	As of Period End:
	Balance Sheet Totals
	Loans and Leases				$	12,072,750		$	12,041,378		$	11,940,020		$	11,793,608
	Total Assets					22,965,383			22,672,183			20,603,651			20,109,489
	Total Deposits					20,493,678			20,169,709			18,211,621			17,738,883
	Other Debt					10,414			10,437			60,481			60,502
	Total Shareholders' Equity					1,597,109			1,583,531			1,374,507			1,361,739
	Asset Quality
	Non-Performing Assets				$	20,620		$	18,974		$	18,481		$	18,626
	Allowance for Credit Losses - Loans and Leases					167,920			180,385			216,252			203,496
	Allowance to Loans and Leases Outstanding 5					1.39	%		1.50	%		1.81	%		1.73	%
	Capital Ratios 6
	Common Equity Tier 1 Capital Ratio					12.02	%		12.36	%		12.06	%		12.09	%
	Tier 1 Capital Ratio					13.47			13.87			12.06			12.09
	Total Capital Ratio					14.72			15.13			13.31			13.35
	Tier 1 Leverage Ratio					7.10			7.31			6.71			6.81
	Total Shareholders' Equity to Total Assets					6.95			6.98			6.67			6.77
	Tangible Common Equity to Tangible Assets 7, 8					6.04			6.06			6.53			6.63
	Tangible Common Equity to Risk-Weighted Assets 7,8					11.46			11.81			11.89			12.02
	Non-Financial Data
	Full-Time Equivalent Employees					2,049			2,085			2,022			2,038
	Branches					54			54			65			67
	ATMs					303			312			357			358
1	Provision for Credit Losses for 2021 includes Provision for Unfunded Commitments and Accrued Interest Receivable, 2020 represents only Provisions for Loans and Leases.
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 September 30, 2021 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 and intangible assets. Intangible assets are included as a component of other assets in the Consolidated Statements of Condition. See Table 2 “Reconciliation of Non-GAAP Financial Measures."
8	Return on Average Common Equity was revised from 19.60% for the three months ended June 30, 2021, Tangible Common Equity to Tangible Asset 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, and Tangible Book Value was revised from $34.02 for the three months ended June 30, 2021.

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)				2021			2021			2020			2020
Total Shareholders' Equity			$	1,597,109		$	1,583,531		$	1,374,507		$	1,361,739
Less:	Preferred Stock			180,000			180,000			-			-
	Goodwill			31,517			31,517			31,517			31,517
Tangible Common Equity			$	1,385,592		$	1,372,014		$	1,342,990		$	1,330,222
Total Assets			$	22,965,383		$	22,672,183		$	20,603,651		$	20,109,489
Less:	Goodwill			31,517			31,517			31,517			31,517
Tangible Assets			$	22,933,866		$	22,640,666		$	20,572,134		$	20,077,972
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements			$	12,093,010		$	11,614,522		$	11,295,077		$	11,068,888
Total Shareholders' Equity to Total Assets				6.95	%		6.98	%		6.67	%		6.77	%
Tangible Common Equity to Tangible Assets (Non-GAAP)				6.04	%		6.06	%		6.53	%		6.63	%
Tier 1 Capital Ratio				13.47	%		13.87	%		12.06	%		12.09	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)				11.46	%		11.81	%		11.89	%		12.02	%
Note: Risk-Weighted Assets and Regulatory capital ratios as of September 30, 2021 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)	2021			2021			2020				2021			2020
Interest Income
Interest and Fees on Loans and Leases	$	100,570		$	100,894		$	103,189			$	300,763		$	319,027
Income on Investment Securities
Available-for-Sale		16,396			16,467			14,558				48,700			45,845
Held-to-Maturity		16,754			13,576			15,967				43,630			51,942
Deposits		2			-			3				9			13
Funds Sold		382			260			149				779			787
Other		159			182			151				526			494
Total Interest Income		134,263			131,379			134,017				394,407			418,108
Interest Expense
Deposits		3,837			4,152			5,891				12,318			28,105
Securities Sold Under Agreements to Repurchase		3,423			3,470			3,622				10,426			11,667
Funds Purchased		-			-			-				1			90
Short-Term Borrowings		-			-			1				-			62
Other Debt		184			243			337				760			1,361
Total Interest Expense		7,444			7,865			9,851				23,505			41,285
Net Interest Income		126,819			123,514			124,166				370,902			376,823
Provision for Credit Losses		(10,400	)		(16,100	)		28,600				(40,800	)		102,600
Net Interest Income After Provision for Credit Losses		137,219			139,614			95,566				411,702			274,223
Noninterest Income
Trust and Asset Management		11,415			11,682			10,752				34,375			32,217
Mortgage Banking		3,136			3,058			4,047				12,056			11,020
Service Charges on Deposit Accounts		6,510			6,065			6,027				18,703			18,575
Fees, Exchange, and Other Service Charges		13,604			13,807			12,296				41,018			34,913
Investment Securities Gains (Losses), Net		(1,259	)		2,423			(1,121	)			(39	)		11,125
Annuity and Insurance		735			911			881				2,348			2,692
Bank-Owned Life Insurance		1,897			2,063			1,806				5,877			5,035
Other		5,340			4,422			7,046				14,441			23,574
Total Noninterest Income		41,378			44,431			41,734				128,779			139,151
Noninterest Expense
Salaries and Benefits		56,447			56,161			51,951				168,859			157,129
Net Occupancy		3,079			5,047			7,281				17,216			24,997
Net Equipment		8,924			8,796			9,223				26,598			25,874
Data Processing		4,722			4,557			4,691				15,601			13,895
Professional Fees		2,948			3,114			2,743				9,468			9,012
FDIC Insurance		1,594			1,669			1,282				4,917			4,296
Other		18,805			17,183			12,778				49,252			39,950
Total Noninterest Expense		96,519			96,527			89,949				291,911			275,153
Income Before Provision for Income Taxes		82,078			87,518			47,351				248,570			138,221
Provision for Income Taxes		20,025			19,985			9,511				59,035			26,731
Net Income	$	62,053		$	67,533		$	37,840			$	189,535		$	111,490
Preferred Stock Dividends		1,006			-			-				1,006			-
Net Income Available to Common Shareholders	$	61,047		$	67,533		$	37,840			$	188,529		$	111,490
Basic Earnings Per Common Share	$	1.53		$	1.69		$	0.95			$	4.73		$	2.81
Diluted Earnings Per Common Share	$	1.52		$	1.68		$	0.95			$	4.70		$	2.80
Dividends Declared Per Common Share	$	0.70		$	0.67		$	0.67			$	2.04		$	2.01
Basic Weighted Average Common Shares		39,881,437			39,902,583			39,745,120				39,870,450			39,710,252
Diluted Weighted Average Common Shares		40,080,919			40,122,905			39,869,135				40,088,899			39,872,406

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)	2021			2021			2020				2021			2020
Net Income	$	62,053		$	67,533		$	37,840			$	189,535		$	111,490
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities		(7,541	)		(123	)		(4,900	)			(57,714	)		44,389
Defined Benefit Plans		441			442			374				1,324			1,122
Other Comprehensive Income (Loss)		(7,100	)		319			(4,526	)			(56,390	)		45,511
Comprehensive Income	$	54,953		$	67,852		$	33,314			$	133,145		$	157,001

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
		September 30,			June 30,			December 31,			September 30,
(dollars in thousands)		2021			2021			2020			2020
Assets
Interest-Bearing Deposits in Other Banks	$	2,188		$	2,584		$	1,646		$	4,233
Funds Sold		422,063			909,730			333,022			736,524
Investment Securities
Available-for-Sale		4,353,520			4,522,941			3,791,689			3,190,313
Held-to-Maturity (Fair Value of $4,895,763; $3,965,117; $3,348,693; and $3,288,668)		4,899,880			3,947,613			3,262,727			3,198,830
Loans Held for Sale		21,965			47,490			82,565			-
Loans and Leases		12,072,750			12,041,378			11,940,020			11,793,608
Allowance for Credit Losses		(167,920	)		(180,385	)		(216,252	)		(203,496	)
Net Loans and Leases		11,904,830			11,860,993			11,723,768			11,590,112
Total Earning Assets		21,604,446			21,291,351			19,195,417			18,720,012
Cash and Due from Banks		231,711			269,153			279,420			260,167
Premises and Equipment, Net		199,144			198,508			199,695			199,021
Operating Lease Right-of-Use Assets		97,007			97,264			99,542			96,200
Accrued Interest Receivable		46,751			47,046			49,303			57,370
Foreclosed Real Estate		2,332			2,332			2,332			2,332
Mortgage Servicing Rights		22,099			21,473			19,652			21,887
Goodwill		31,517			31,517			31,517			31,517
Bank-Owned Life Insurance		293,230			292,805			291,480			291,231
Other Assets		437,146			420,734			435,293			429,752
Total Assets	$	22,965,383		$	22,672,183		$	20,603,651		$	20,109,489
Liabilities
Deposits
Noninterest-Bearing Demand	$	7,111,693		$	6,570,232		$	5,749,612		$	5,428,567
Interest-Bearing Demand		4,768,725			4,498,825			4,040,733			3,824,448
Savings		7,540,345			7,704,575			6,759,213			6,763,891
Time		1,072,915			1,396,077			1,662,063			1,721,977
Total Deposits		20,493,678			20,169,709			18,211,621			17,738,883
Securities Sold Under Agreements to Repurchase		450,490			550,490			600,590			602,106
Other Debt		10,414			10,437			60,481			60,502
Operating Lease Liabilities		104,452			105,380			107,412			103,869
Retirement Benefits Payable		49,802			50,260			51,197			43,505
Accrued Interest Payable		3,415			3,879			5,117			6,613
Taxes Payable and Deferred Taxes		9,815			11,844			2,463			12,124
Other Liabilities		246,208			186,653			190,263			180,148
Total Liabilities		21,368,274			21,088,652			19,229,144			18,747,750
Shareholders' Equity
Preferred Stock ($.01 par value; authorized 180,000 shares; issued and outstanding: September 30, 2021 and June 30, 2021 - 180,000 shares)		180,000			180,000			-			-
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: September 30, 2021 - 58,559,089 / 40,305,801; June 30, 2021 - 58,557,754 / 40,465,482; December 31, 2020 - 58,285,624 / 40,119,312; and September 30, 2020 - 58,248,690 / 40,060,675)		580			580			580			580
Capital Surplus		598,341			594,261			591,360			588,632
Accumulated Other Comprehensive Income (Loss)		(48,568	)		(41,468	)		7,822			14,399
Retained Earnings		1,916,861			1,884,431			1,811,979			1,797,763
Treasury Stock, at Cost (Shares: September 30, 2021 - 18,253,288; June 30, 2021 - 18,092,272; December 31, 2020 - 18,166,312; and September 30, 2020 - 18,188,015)		(1,050,105	)		(1,034,273	)		(1,037,234	)		(1,039,635	)
Total Shareholders' Equity		1,597,109			1,583,531			1,374,507			1,361,739
Total Liabilities and Shareholders' Equity	$	22,965,383		$	22,672,183		$	20,603,651		$	20,109,489

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																													Table 6
																	Accum.
																	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, 2020		-		$	-		40,119,312			$	580		$	591,360			$	7,822			$	1,811,979			$	(1,037,234	)		$	1,374,507
Net Income		-			-		-				-			-				-				189,535				-				189,535
Other Comprehensive Loss		-			-		-				-			-				(56,390	)			-				-				(56,390	)
Share-Based Compensation		-			-		-				-			9,658				-				-				-				9,658
Preferred Stock Issued, Net		180,000			180,000		-				-			(4,513	)			-				-				-				175,487
Common Stock Issued under Purchase and Equity Compensation Plans		-			-		466,265				-			1,836				-				(1,218	)			10,541				11,159
Common Stock Repurchased		-			-		(279,776	)			-			-				-				-				(23,412	)			(23,412	)
Cash Dividends Declared Common Stock ($2.04 per share)		-			-		-				-			-				-				(82,429	)			-				(82,429	)
Cash Dividends Declared Preferred Stock		-			-		-				-			-				-				(1,006	)			-				(1,006	)
Balance as of September 30, 2021		180,000		$	180,000		40,305,801			$	580		$	598,341			$	(48,568	)		$	1,916,861			$	(1,050,105	)		$	1,597,109
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 Common Stock ($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

	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, 2021									June 30, 2021									September 30, 2020
			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		$	3.2		$	-		0.23	%		$	2.2		$	-		0.04	%		$	2.6		$	-		0.45	%
	Funds Sold			999.5			0.4		0.15				946.2			0.3		0.11				584.2			0.1		0.10
	Investment Securities
	Available-for-Sale
	Taxable			4,454.9			16.3		1.46				4,290.8			16.3		1.53				2,918.6			14.3		1.96
	Non-Taxable			10.1			0.1		4.34				12.3			0.1		4.27				25.8			0.3		4.22
	Held-to-Maturity
	Taxable			4,294.6			16.5		1.53				3,496.2			13.4		1.53				3,257.7			15.7		1.93
	Non-Taxable			64.8			0.4		2.37				41.5			0.3		2.53				54.1			0.4		2.66
	Total Investment Securities			8,824.4			33.3		1.51				7,840.8			30.1		1.54				6,256.2			30.7		1.96
	Loans Held for Sale			24.6			0.2		2.80				25.7			0.2		2.86				15.9			0.1		3.24
	Loans and Leases 1
	Commercial and Industrial			1,644.8			17.0		4.09				1,934.5			16.8		3.49				1,917.0			14.1		2.93
	Commercial Mortgage			2,952.7			21.9		2.94				2,883.5			21.3		2.96				2,722.3			21.7		3.18
	Construction			289.9			2.5		3.38				285.6			2.6		3.66				234.0			2.1		3.60
	Commercial Lease Financing			109.3			0.4		1.58				105.7			0.4		1.54				110.7			0.5		1.82
	Residential Mortgage			4,253.2			34.8		3.27				4,234.3			35.6		3.35				3,988.7			36.7		3.68
	Home Equity			1,621.4			12.2		2.97				1,573.4			12.1		3.09				1,625.2			14.1		3.45
	Automobile			718.7			6.2		3.41				710.4			6.1		3.45				708.3			6.4		3.59
	Other 2			368.3			5.7		6.16				368.9			6.0		6.53				433.6			7.6		6.96
	Total Loans and Leases			11,958.3			100.7		3.35				12,096.3			100.9		3.34				11,739.8			103.2		3.50
	Other			31.5			0.2		2.02				32.3			0.2		2.26				33.3			0.2		1.81
	Total Earning Assets 3			21,841.5			134.8		2.45				20,943.5			131.7		2.52				18,632.0			134.3		2.88
	Cash and Due from Banks			252.2									256.1									234.3
	Other Assets			899.3									874.0									874.8
	Total Assets		$	22,993.0								$	22,073.6								$	19,741.1
	Interest-Bearing Liabilities
	Interest-Bearing Deposits
	Demand		$	4,707.1			0.7		0.06			$	4,452.4			0.7		0.07			$	3,465.5			0.4		0.04
	Savings			7,687.0			1.8		0.09				7,533.0			1.8		0.09				6,886.0			1.7		0.10
	Time			1,267.0			1.4		0.44				1,418.4			1.7		0.47				1,568.3			3.8		0.97
	Total Interest-Bearing Deposits			13,661.1			3.9		0.11				13,403.8			4.2		0.12				11,919.8			5.9		0.20
	Securities Sold Under Agreements to Repurchase			547.8			3.4		2.45				570.3			3.5		2.41				602.9			3.6		2.35
	Other Debt			10.4			0.2		7.04				30.2			0.2		3.22				60.5			0.3		2.22
	Total Interest-Bearing Liabilities			14,219.3			7.5		0.21				14,004.3			7.9		0.22				12,583.2			9.8		0.31
	Net Interest Income					$	127.3								$	123.8								$	124.5
	Interest Rate Spread								2.24	%								2.30	%								2.57	%
	Net Interest Margin								2.32	%								2.37	%								2.67	%
	Noninterest-Bearing Demand Deposits			6,812.7									6,294.5									5,350.4
	Other Liabilities			362.9									361.9									439.7
	Shareholders' Equity			1,598.1									1,412.9									1,367.8
	Total Liabilities and Shareholders' Equity		$	22,993.0								$	22,073.6								$	19,741.1
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 $315,000, $269,000, and $295,000 for the three months ended September 30, 2021, June 30, 2021, and September 30, 2020, 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, 2021									September 30, 2020
			Average			Income/			Yield/			Average			Income/			Yield/
	(dollars in millions)		Balance			Expense			Rate			Balance			Expense			Rate
	Earning Assets
	Interest-Bearing Deposits in Other Banks		$	2.9		$	-		0.44	%		$	2.2		$	-		0.76	%
	Funds Sold			833.7			0.8		0.12				428.3			0.8		0.24
	Investment Securities
	Available-for-Sale
	Taxable			4,252.9			48.4		1.52				2,745.7			45.1		2.19
	Non-Taxable			11.5			0.4		4.29				30.1			1.0		4.37
	Held-to-Maturity
	Taxable			3,728.9			42.9		1.53				3,084.4			51.0		2.21
	Non-Taxable			48.2			0.9		2.46				54.4			1.1		2.66
	Total Investment Securities			8,041.5			92.6		1.54				5,914.6			98.2		2.21
	Loans Held for Sale			25.5			0.5		2.81				20.8			0.5		3.35
	Loans and Leases 1
	Commercial and Industrial			1,826.9			48.1		3.52				1,763.9			45.2		3.43
	Commercial Mortgage			2,894.5			64.5		2.98				2,631.9			69.2		3.51
	Construction			280.0			7.3		3.51				234.3			7.1		4.04
	Commercial Lease Financing			107.1			1.2		1.52				111.0			1.6		1.88
	Residential Mortgage			4,211.8			106.2		3.36				3,941.3			109.5		3.70
	Home Equity			1,596.4			36.9		3.09				1,656.8			43.6		3.51
	Automobile			712.5			18.4		3.46				710.2			19.0		3.57
	Other 2			373.2			18.1		6.48				460.8			23.9		6.93
	Total Loans and Leases			12,002.4			300.7		3.35				11,510.2			319.1		3.70
	Other			32.4			0.5		2.17				33.9			0.5		1.95
	Total Earning Assets 3			20,938.4			395.1		2.52				17,910.0			419.1		3.12
	Cash and Due from Banks			259.6									271.7
	Other Assets			881.2									871.9
	Total Assets		$	22,079.2								$	19,053.6
	Interest-Bearing Liabilities
	Interest-Bearing Deposits
	Demand		$	4,450.6			2.0		0.06			$	3,268.1			1.9		0.08
	Savings			7,414.6			5.0		0.09				6,693.9			11.0		0.22
	Time			1,437.1			5.3		0.49				1,712.2			15.2		1.19
	Total Interest-Bearing Deposits			13,302.3			12.3		0.12				11,674.2			28.1		0.32
	Short-Term Borrowings			0.8			-		0.09				38.3			0.2		0.52
	Securities Sold Under Agreements to Repurchase			572.7			10.4		2.40				603.4			11.6		2.54
	Other Debt			33.5			0.8		3.03				62.6			1.4		2.90
	Total Interest-Bearing Liabilities			13,909.3			23.5		0.22				12,378.5			41.3		0.44
	Net Interest Income					$	371.6								$	377.8
	Interest Rate Spread								2.30	%								2.68	%
	Net Interest Margin								2.37	%								2.82	%
	Noninterest-Bearing Demand Deposits			6,316.8									4,917.4
	Other Liabilities			389.5									413.3
	Shareholders' Equity			1,463.6									1,344.4
	Total Liabilities and Shareholders' Equity		$	22,079.2								$	19,053.6
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 $836,000 and $1,010,000 for the nine months ended September 30, 2021 and September 30, 2020, respectively.

	Bank of Hawaii Corporation and Subsidiaries
	Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
		Three Months Ended September 30, 2021
		Compared to June 30, 2021
	(dollars in millions)	Volume 1			Rate 1			Total
	Change in Interest Income:
	Funds Sold	$	-		$	0.1		$	0.1
	Investment Securities
	Available-for-Sale
	Taxable		0.6			(0.6	)		-
	Held-to-Maturity
	Taxable		3.1			-			3.1
	Non-Taxable		0.1			-			0.1
	Total Investment Securities		3.8			(0.6	)		3.2
	Loans and Leases
	Commercial and Industrial		(4.0	)		4.2			0.2
	Commercial Mortgage		0.7			(0.1	)		0.6
	Construction		0.1			(0.2	)		(0.1	)
	Commercial Lease Financing		0.1			(0.1	)		-
	Residential Mortgage		0.2			(1.0	)		(0.8	)
	Home Equity		0.5			(0.4	)		0.1
	Automobile		0.1			-			0.1
	Other 2		-			(0.3	)		(0.3	)
	Total Loans and Leases		(2.3	)		2.1			(0.2	)
	Total Change in Interest Income		1.5			1.6			3.1
	Change in Interest Expense:
	Interest-Bearing Deposits
	Demand		0.1			(0.1	)		-
	Time		(0.2	)		(0.1	)		(0.3	)
	Total Interest-Bearing Deposits		(0.1	)		(0.2	)		(0.3	)
	Securities Sold Under Agreements to Repurchase		(0.1	)		-			(0.1	)
	Other Debt		(0.2	)		0.2			-
	Total Change in Interest Expense		(0.4	)		-			(0.4	)
	Change in Net Interest Income	$	1.9		$	1.6		$	3.5
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, 2021
		Compared to September 30, 2020
	(dollars in millions)	Volume 1			Rate 1			Total
	Change in Interest Income:
	Funds Sold	$	0.2		$	0.1		$	0.3
	Investment Securities
	Available-for-Sale
	Taxable		6.3			(4.3	)		2.0
	Non-Taxable		(0.2	)		-			(0.2	)
	Held-to-Maturity
	Taxable		4.4			(3.6	)		0.8
	Non-Taxable		0.1			(0.1	)		-
	Total Investment Securities		10.6			(8.0	)		2.6
	Loans Held for Sale		0.1			-			0.1
	Loans and Leases
	Commercial and Industrial		(2.1	)		5.0			2.9
	Commercial Mortgage		1.8			(1.6	)		0.2
	Construction		0.5			(0.1	)		0.4
	Commercial Lease Financing		-			(0.1	)		(0.1	)
	Residential Mortgage		2.3			(4.2	)		(1.9	)
	Home Equity		-			(1.9	)		(1.9	)
	Automobile		0.1			(0.3	)		(0.2	)
	Other 2		(1.1	)		(0.8	)		(1.9	)
	Total Loans and Leases		1.5			(4.0	)		(2.5	)
	Total Change in Interest Income		12.4			(11.9	)		0.5
	Change in Interest Expense:
	Interest-Bearing Deposits
	Demand		0.2			0.1			0.3
	Savings		0.2			(0.1	)		0.1
	Time		(0.6	)		(1.8	)		(2.4	)
	Total Interest-Bearing Deposits		(0.2	)		(1.8	)		(2.0	)
	Securities Sold Under Agreements to Repurchase		(0.3	)		0.1			(0.2	)
	Other Debt		(0.4	)		0.3			(0.1	)
	Total Change in Interest Expense		(0.9	)		(1.4	)		(2.3	)
	Change in Net Interest Income	$	13.3		$	(10.5	)	$	2.8
1	The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2	Comprised of other consumer revolving credit, installment, and consumer lease financing.

	Bank of Hawaii Corporation and Subsidiaries
	Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8c
		Nine Months Ended September 30, 2021
		Compared to September 30, 2020
	(dollars in millions)	Volume 1			Rate 1			Total
	Change in Interest Income:
	Funds Sold	$	0.5		$	(0.5	)	$	-
	Investment Securities
	Available-for-Sale
	Taxable		19.9			(16.6	)		3.3
	Non-Taxable		(0.6	)		-			(0.6	)
	Held-to-Maturity
	Taxable		9.4			(17.5	)		(8.1	)
	Non-Taxable		(0.1	)		(0.1	)		(0.2	)
	Total Investment Securities		28.6			(34.2	)		(5.6	)
	Loans Held for Sale		0.1			(0.1	)		-
	Loans and Leases
	Commercial and Industrial		6.4			(3.5	)		2.9
	Commercial Mortgage		6.5			(11.2	)		(4.7	)
	Construction		1.2			(1.0	)		0.2
	Commercial Lease Financing		(0.1	)		(0.3	)		(0.4	)
	Residential Mortgage		7.2			(10.5	)		(3.3	)
	Home Equity		(1.5	)		(5.2	)		(6.7	)
	Automobile		-			(0.6	)		(0.6	)
	Other 2		(4.3	)		(1.5	)		(5.8	)
	Total Loans and Leases		15.4			(33.8	)		(18.4	)
	Total Change in Interest Income		44.6			(68.6	)		(24.0	)
	Change in Interest Expense:
	Interest-Bearing Deposits
	Demand		0.6			(0.5	)		0.1
	Savings		1.1			(7.1	)		(6.0	)
	Time		(2.1	)		(7.8	)		(9.9	)
	Total Interest-Bearing Deposits		(0.4	)		(15.4	)		(15.8	)
	Short-Term Borrowings		(0.1	)		(0.1	)		(0.2	)
	Securities Sold Under Agreements to Repurchase		(0.6	)		(0.6	)		(1.2	)
	Other Debt		(0.7	)		0.1			(0.6	)
	Total Change in Interest Expense		(1.8	)		(16.0	)		(17.8	)
	Change in Net Interest Income	$	46.4		$	(52.6	)	$	(6.2	)
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)		2021			2021			2020			2021			2020
Salaries	$	34,676		$	33,413		$	34,046		$	99,658		$	100,271
Incentive Compensation		4,677			5,172			2,683			15,763			6,069
Share-Based Compensation		3,335			3,174			1,442			9,093			4,754
Commission Expense		1,772			2,599			1,800			6,807			4,821
Retirement and Other Benefits		4,746			5,289			4,164			15,552			13,316
Payroll Taxes		2,825			3,026			2,624			9,819			9,949
Medical, Dental, and Life Insurance		3,222			3,204			3,422			8,850			11,394
Separation Expense		1,194			284			1,770			3,317			6,555
Total Salaries and Benefits	$	56,447		$	56,161		$	51,951		$	168,859		$	157,129

	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)			2021			2021			2021			2020			2020
	Commercial
	Commercial and Industrial		$	1,325,446		$	1,257,305		$	1,288,496		$	1,357,610		$	1,376,843
	PPP 1			268,480			513,513			725,485			517,683			531,639
	Commercial Mortgage			2,994,520			2,944,435			2,859,246			2,854,829			2,745,611
	Construction			296,052			277,393			281,164			259,798			250,943
	Lease Financing			107,526			110,500			104,980			110,766			111,831
	Total Commercial			4,992,024			5,103,146			5,259,371			5,100,686			5,016,867
	Consumer
	Residential Mortgage			4,272,540			4,264,180			4,216,976			4,130,513			4,044,228
	Home Equity			1,680,229			1,594,781			1,577,500			1,604,538			1,605,486
	Automobile			727,234			714,729			710,407			708,800			709,937
	Other 2			400,723			364,542			376,449			395,483			417,090
	Total Consumer			7,080,726			6,938,232			6,881,332			6,839,334			6,776,741
	Total Loans and Leases		$	12,072,750		$	12,041,378		$	12,140,703		$	11,940,020		$	11,793,608
	Deposits
			September 30,			June 30,			March 31,			December 31,			September 30,
	(dollars in thousands)			2021			2021			2021			2020			2020
	Consumer		$	10,150,199		$	9,848,285		$	9,746,713		$	9,347,725		$	8,903,808
	Commercial			8,767,733			8,675,909			8,241,102			7,302,832			7,159,531
	Public and Other			1,575,746			1,645,515			1,568,836			1,561,064			1,675,544
	Total Deposits		$	20,493,678		$	20,169,709		$	19,556,651		$	18,211,621		$	17,738,883
1	The PPP amounts presented, which are reported net of deferred costs and fees, were previously included as a component of the Commercial and Industrial loan class.
2	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)		2021				2021				2021				2020				2020
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial		$	209			$	258			$	293			$	441			$	475
Commercial Mortgage			8,309				8,413				8,503				8,527				8,615
Total Commercial			8,518				8,671				8,796				8,968				9,090
Consumer
Residential Mortgage			4,348				2,437				1,804				3,223				3,543
Home Equity			5,422				5,534				4,951				3,958				3,661
Total Consumer			9,770				7,971				6,755				7,181				7,204
Total Non-Accrual Loans and Leases			18,288				16,642				15,551				16,149				16,294
Foreclosed Real Estate			2,332				2,332				2,332				2,332				2,332
Total Non-Performing Assets		$	20,620			$	18,974			$	17,883			$	18,481			$	18,626
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial		$	-			$	-			$	9			$	-			$	-
Total Commercial			-				-				9				-				-
Consumer
Residential Mortgage		$	4,776			$	4,069			$	4,069			$	5,274			$	6,607
Home Equity			2,946				4,498				4,906				3,187				2,571
Automobile			395				277				604				925				156
Other 1			593				434				828				1,160				258
Total Consumer			8,710				9,278				10,407				10,546				9,592
Total Accruing Loans and Leases Past Due 90 Days or More		$	8,710			$	9,278			$	10,416			$	10,546			$	9,592
Restructured Loans on Accrual Status and Not Past Due 90 Days or More		$	62,787			$	74,926			$	74,216			$	68,065			$	58,650
Total Loans and Leases		$	12,072,750			$	12,041,378			$	12,140,703			$	11,940,020			$	11,793,608
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.15	%			0.14	%			0.13	%			0.14	%			0.14	%
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate			0.17	%			0.16	%			0.15	%			0.15	%			0.16	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate			0.17	%			0.17	%			0.17	%			0.18	%			0.18	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate			0.17	%			0.15	%			0.13	%			0.14	%			0.14	%
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases and Foreclosed Real Estate			0.24	%			0.23	%			0.23	%			0.24	%			0.24	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter		$	18,974			$	17,883			$	18,481			$	18,626			$	22,701
Additions			3,171				2,229				2,992				434				938
Reductions
Payments			(889	)			(722	)			(2,481	)			(490	)			(3,729	)
Return to Accrual Status			(606	)			(416	)			(1,014	)			-				(1,035	)
Sales of Foreclosed Real Estate			-				-				-				-				(175	)
Charge-offs/Write-downs			(30	)			-				(95	)			(89	)			(74	)
Total Reductions			(1,525	)			(1,138	)			(3,590	)			(579	)			(5,013	)
Balance at End of Quarter		$	20,620			$	18,974			$	17,883			$	18,481			$	18,626
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)		2021				2021				2020				2021				2020
	Balance at Beginning of Period		$	186,371			$	203,779			$	175,958			$	221,303				116,849
	CECL Adoption (Day 1) Impact			-				-				-				-				(5,072	)
	Loans and Leases Charged-Off
	Commercial
	Commercial and Industrial			(196	)			(456	)			(171	)			(900	)			(1,520	)
	Consumer
	Residential Mortgage			(197	)			(115	)			-				(316	)			(84	)
	Home Equity			(289	)			(107	)			(43	)			(412	)			(316	)
	Automobile			(576	)			(1,209	)			(489	)			(3,894	)			(6,103	)
	Other 1			(2,187	)			(2,422	)			(1,644	)			(8,523	)			(9,784	)
	Total Loans and Leases Charged-Off			(3,445	)			(4,309	)			(2,347	)			(14,045	)			(17,807	)
	Recoveries on Loans and Leases Previously Charged-Off
	Commercial
	Commercial and Industrial			118				144				231				374				2,044
	Commercial Mortgage			-				-				-				-				40
	Consumer
	Residential Mortgage			173				481				414				1,609				795
	Home Equity			216				527				727				1,276				2,024
	Automobile			943				1,172				1,313				3,034				2,865
	Other 1			802				801				1,119				2,459				2,645
	Total Recoveries on Loans and Leases Previously Charged-Off			2,252				3,125				3,804				8,752				10,413
	Net Recovered (Charged-Off) - Loans and Leases			(1,193	)			(1,184	)			1,457				(5,293	)			(7,394	)
	Net Charged-Off - Accrued Interest Receivable			(70	)			(124	)			-				(502	)
	Provision for Credit Losses:
	Loans and Leases			(11,272	)			(16,774	)			28,600				(43,039	)			102,600
	Accrued Interest Receivable			(703	)			(828	)			-				(1,531	)			-
	Unfunded Commitments			1,575				1,502				(202	)			3,770				(1,170	)
	Balance at End of Period 2		$	174,708			$	186,371			$	205,813			$	174,708			$	205,813
	Components
	Allowance for Credit Losses - Loans and Leases		$	167,920				180,385				203,496			$	167,920				203,496
	Allowance for Credit Losses - Accrued Interest Receivable			667				1,440				-				667				-
	Reserve for Unfunded Commitments			6,121				4,546				2,317				6,121				2,317
	Total Reserve for Credit Losses		$	174,708			$	186,371			$	205,813			$	174,708			$	205,813
	Average Loans and Leases Outstanding		$	11,958,321			$	12,096,308			$	11,739,785			$	12,002,426			$	11,510,222
	Ratio of Net Loans and Leases Charged-Off (Recovered) to
	Average Loans and Leases Outstanding (annualized)			0.04	%			0.04	%			(0.05	%)			0.06	%			0.09	%
	Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 3			1.39	%			1.50	%			1.73	%			1.39	%			1.73	%
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.
3	The numerator comprises the Allowance for Credit Losses - Loans and Leases.

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information														Table 13a
		Consumer				Commercial				Treasury				Consolidated
(dollars in thousands)		Banking				Banking				and Other				Total
Three Months Ended September 30, 2021
Net Interest Income		$	72,062			$	50,088			$	4,669			$	126,819
Provision for Credit Losses			1,235				(42	)			(11,593	)			(10,400	)
Net Interest Income After Provision for Credit Losses			70,827				50,130				16,262				137,219
Noninterest Income			32,046				7,906				1,426				41,378
Noninterest Expense			(71,377	)			(15,924	)			(9,218	)			(96,519	)
Income Before Income Taxes			31,496				42,112				8,470				82,078
Provision for Income Taxes			(8,001	)			(10,373	)			(1,651	)			(20,025	)
Net Income		$	23,495			$	31,739			$	6,819			$	62,053
Total Assets as of September 30, 2021		$	7,530,513			$	5,087,831			$	10,347,039			$	22,965,383
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

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, 2021
Net Interest Income		$	212,991			$	146,269			$	11,642			$	370,902
Provision for Credit Losses			5,088				205				(46,093	)			(40,800	)
Net Interest Income After Provision for Credit Losses			207,903				146,064				57,735				411,702
Noninterest Income			98,344				22,339				8,096				128,779
Noninterest Expense			(222,426	)			(47,343	)			(22,142	)			(291,911	)
Income Before Income Taxes			83,821				121,060				43,689				248,570
Provision for Income Taxes			(20,840	)			(29,634	)			(8,561	)			(59,035	)
Net Income		$	62,981			$	91,426			$	35,128			$	189,535
Total Assets as of September 30, 2021		$	7,530,513			$	5,087,831			$	10,347,039			$	22,965,383
Nine Months Ended September 30, 2020
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

	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)		2021					2021					2021						2020					2020
	Quarterly Operating Results
	Interest Income
	Interest and Fees on Loans and Leases		$	100,570				$	100,894				$	99,299				$	98,471				$	103,189
	Income on Investment Securities
	Available-for-Sale			16,396					16,467					15,837					15,449					14,558
	Held-to-Maturity			16,754					13,576					13,300					14,113					15,967
	Deposits			2					-					7					1					3
	Funds Sold			382					260					137					115					149
	Other			159					182					185					167					151
	Total Interest Income			134,263					131,379					128,765					128,316					134,017
	Interest Expense
	Deposits			3,837					4,152					4,329					4,861					5,891
	Securities Sold Under Agreements to Repurchase			3,423					3,470					3,533					3,614					3,622
	Funds Purchased			-					-					1					5					-
	Short-Term Borrowings			-					-					-					-					1
	Other Debt			184					243					333					337					337
	Total Interest Expense			7,444					7,865					8,196					8,817					9,851
	Net Interest Income			126,819					123,514					120,569					119,499					124,166
	Provision for Credit Losses			(10,400)					(16,100)					(14,300)					15,200					28,600
	Net Interest Income After Provision for Credit Losses			137,219					139,614					134,869					104,299					95,566
	Noninterest Income
	Trust and Asset Management			11,415					11,682					11,278					11,239					10,752
	Mortgage Banking			3,136					3,058					5,862					6,851					4,047
	Service Charges on Deposit Accounts			6,510					6,065					6,128					6,335					6,027
	Fees, Exchange, and Other Service Charges			13,604					13,807					13,607					12,143					12,296
	Investment Securities Gains (Losses), Net			(1,259)					2,423					(1,203)					(1,193)					(1,121)
	Annuity and Insurance			735					911					702					670					881
	Bank-Owned Life Insurance			1,897					2,063					1,917					2,353					1,806
	Other			5,340					4,422					4,679					6,860					7,046
	Total Noninterest Income			41,378					44,431					42,970					45,258					41,734
	Noninterest Expense
	Salaries and Benefits			56,447					56,161					56,251					50,200					51,951
	Net Occupancy			3,079					5,047					9,090					14,536					7,281
	Net Equipment			8,924					8,796					8,878					9,574					9,223
	Data Processing			4,722					4,557					6,322					4,604					4,691
	Professional Fees			2,948					3,114					3,406					3,174					2,743
	FDIC Insurance			1,594					1,669					1,654					1,484					1,282
	Other			18,805					17,183					13,264					15,082					12,778
	Total Noninterest Expense			96,519					96,527					98,865					98,654					89,949
	Income Before Provision for Income Taxes			82,078					87,518					78,974					50,903					47,351
	Provision for Income Taxes			20,025					19,985					19,025					8,589					9,511
	Net Income		$	62,053				$	67,533				$	59,949				$	42,314				$	37,840
	Preferred Stock Dividends			1,006					-					-					-					-
	Net Income Available to Common Shareholders		$	61,047				$	67,533				$	59,949				$	42,314				$	37,840
	Basic Earnings Per Common Share		$	1.53				$	1.69				$	1.51				$	1.06				$	0.95
	Diluted Earnings Per Common Share		$	1.52				$	1.68				$	1.50				$	1.06				$	0.95
	Balance Sheet Totals
	Loans and Leases		$	12,072,750				$	12,041,378				$	12,140,703				$	11,940,020				$	11,793,608
	Total Assets			22,965,383					22,672,183					21,947,271					20,603,651					20,109,489
	Total Deposits			20,493,678					20,169,709					19,556,651					18,211,621					17,738,883
	Total Shareholders' Equity			1,597,109					1,583,531					1,360,221					1,374,507					1,361,739
	Performance Ratios
	Return on Average Assets			1.07		%			1.23		%			1.15		%			0.83		%			0.76		%
	Return on Average Shareholders' Equity			15.41					19.17					17.65					12.26					11.01
	Return on Average Common Equity			17.08					19.61					17.65					12.26					11.01
	Efficiency Ratio 1			57.38					57.47					60.45					59.88					54.22
	Net Interest Margin 2			2.32					2.37					2.43					2.48					2.67
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, 2021						December 31, 2020						December 31, 2019
Hawaii Economic Trends
State General Fund Revenues 1		$	5,325.4		21.2	%		$	6,415.1		(12.3)	%		$	7,316.5			5.5	%
General Excise and Use Tax Revenue 1		$	2,367.9		11.6	%		$	3,038.8		(15.6)	%		$	3,602.2			5.1	%
Jobs 2			601.8						588.2						659.7
											August 31,			December 31,
(spot rates)											2021			2020				2019
Unemployment, seasonally adjusted 3
Statewide											7.0	%			10.3	%		2.1	%
Oahu											6.0				9.3			2.0
Island of Hawaii											6.6				10.1			2.5
Maui											8.5				14.3			2.0
Kauai											8.9				13.9			2.1
								September 30,			December 31,
(percentage change, except months of inventory)								2021			2020			2019				2018
Housing Trends (Single Family Oahu) 4
Median Home Price									20.2	%	5.2	%			(0.1)	%		4.6	%
Home Sales Volume (units)									24.2	%	2.3	%			3.9	%		(7.7)	%
Months of Inventory									1.2		1.4				2.5			2.8
								Monthly Visitor Arrivals,						Percentage Change
(in thousands)								Not Seasonally Adjusted						from Previous Year
Tourism 5
August 31, 2021											722.4							3,133.1
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											76.6							(90.4)
September 30, 2020											18.9							(97.4)
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											952.4							5.8
November 30, 2019											809.1							3.9
October 31, 2019											796.2							4.3
September 30, 2019											738.2							3.1
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
1 Source: Hawaii Department of Business, Economic Development & Tourism
2 Source: U. S. Bureau of Labor Statistics
3 Source: UHERO
4 Source: Honolulu Board of REALTORS
5 Source: Hawaii Tourism Authority

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211025005224/en/

Media Inquiries

Melissa Torres-Laing

Email: Melissa.Torres-Laing@boh.com

Telephone: 808-694-8384

Mobile: 808-859-1703

Investor/Analyst Inquiries

Janelle Higa

Email: Janelle.Higa@boh.com

Telephone: 808-694-8007

Source: Bank of Hawaii Corporation

FAQ

What were Bank of Hawaii's earnings per share for Q3 2021?

Bank of Hawaii reported diluted earnings per share of $1.52 for Q3 2021.

How much was Bank of Hawaii's net income in Q3 2021?

The net income for Bank of Hawaii in Q3 2021 was $62.1 million.

What is the dividend declared by Bank of Hawaii for Q3 2021?

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

How did Bank of Hawaii's total assets change in Q3 2021?

Total assets increased by 14.2% year-over-year to a record $23.0 billion.

What was Bank of Hawaii's net interest margin in Q3 2021?

The net interest margin for Bank of Hawaii in Q3 2021 was 2.32%.