Bank of Hawai‘i Corporation Second Quarter 2024 Financial Results

By: Bank of Hawai‘i Corporation via Business Wire

July 22, 2024 at 06:45 AM EDT

Diluted Earnings Per Common Share $0.81
Net Income $34.1 Million
Net Interest Margin 2.15%
Board of Directors Declares Dividend of $0.70 Per Common Share
Industry-wide FDIC Special Assessment Resulted in a $2.6 Million Non-Recurring Charge in the Second Quarter of 2024
Raised $165 million in connection with preferred stock offering in late June

Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $0.81 for the second quarter of 2024, compared with diluted earnings per common share of $0.87 in the previous quarter and $1.12 in the same quarter of 2023. An industry-wide FDIC Special Assessment resulted in a $2.6 million one-time charge in the second quarter of 2024 which negatively impacted diluted earnings per common share by $0.05. Net income for the second quarter of 2024 was $34.1 million, down 6.3% from the previous quarter and down 26.0% from the same quarter of 2023. The return on average common equity for the second quarter of 2024 was 10.41% compared with 11.20% in the previous quarter and 14.95% in the same quarter of 2023.

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“Bank of Hawai‘i delivered strong financial results in the second quarter of 2024,” said Peter Ho, Chairman and CEO. “Credit quality remained exceptional with non-performing assets of 0.11% at quarter end and net charge-offs of 0.10% during the quarter. Our net interest margin increased by 4 basis points as we continued to benefit from cashflows repricing. Our core noninterest income remained steady while core noninterest expense increased by 2.0%. Average deposits were down by 0.9% and average loans were down modestly. Finally, we successfully closed a preferred stock offering in late June, strengthening our already strong capital levels.”

Financial Highlights

Net interest income for the second quarter of 2024 was $114.8 million, an increase of 0.8% from the previous quarter and a decrease of 7.6% from the same quarter of 2023. Net interest margin was 2.15% in the second quarter of 2024, an increase of 4 basis points from the previous quarter and a decrease of 7 basis points from the same quarter of 2023. The increases from the prior quarter were primarily due to higher earning asset yields, partially offset by higher funding costs. The decreases from the same period in 2023 were primarily due to higher funding costs, partially offset by higher earning asset yields.

The average yield on loans and leases was 4.76% in the second quarter of 2024, up 13 basis points from the prior quarter and up 57 basis points from the same quarter of 2023. The average yield on total earning assets was 3.99% in the second quarter of 2024, up 10 basis points from the prior quarter and up 43 basis points from the same quarter of 2023. The average cost of interest-bearing deposits was 2.46% in the second quarter of 2024, up 7 basis points from the prior quarter and up 92 basis points from the same quarter of 2023. The average cost of total deposits, including noninterest-bearing deposits, was 1.81%, up 7 basis points from the prior quarter and up 73 basis points from the same quarter of 2023. The changes in yields and rates over the linked quarter and year over year period reflected deposit mix shift and repricing.

Noninterest income was $42.1 million in the second quarter of 2024, a decrease of 0.5% from the previous quarter and a decrease of 2.7% from the same period in 2023. Noninterest income in the second quarter of 2023 included $1.5 million from the sale of a low-income housing tax credit investment. Adjusted for this item, noninterest income increased by 0.9% from adjusted noninterest income in the same period in 2023.

Noninterest expense was $109.2 million in the second quarter of 2024, an increase of 3.2% from the previous quarter and an increase of 5.0% from the same quarter of 2023. As discussed above, noninterest expense in the second quarter of 2024 included an industry-wide FDIC Special Assessment of $2.6 million, as well as separation expenses of $0.8 million, while noninterest expense in the first quarter of 2024 included seasonal payroll expenses of approximately $2.2 million and separation expenses of $0.5 million. Adjusted noninterest expense in the second quarter of 2024 was $105.9 million, up 2.6% from adjusted noninterest expense in the previous quarter and up 1.8% from the same period in 2023.

The effective tax rate for the second quarter of 2024 was 24.77% compared with 24.76% in the previous quarter and 24.57% during the same quarter of 2023.

Asset Quality

The Company’s overall asset quality remained strong during the second quarter of 2024. Provision for credit losses for the second quarter of 2024 was $2.4 million compared with $2.0 million in the previous quarter and $2.5 million in the same quarter of 2023.

Total non-performing assets were $15.2 million at June 30, 2024, up $3.3 million from March 31, 2024 and up $3.7 million from June 30, 2023. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.11% at the end of the quarter, an increase of 2 basis points from the end of the prior quarter and an increase of 3 basis points from the same quarter of 2023.

Net loan and lease charge-offs during the second quarter of 2024 were $3.4 million or 10 basis points annualized of total average loans and leases outstanding. Net loan and lease charge-offs for the second quarter of 2024 were comprised of charge-offs of $4.8 million partially offset by recoveries of $1.4 million. Compared to the prior quarter, net loan and lease charge-offs increased by $1.1 million or 3 basis points annualized on total average loans and leases outstanding. Compared to the same quarter of 2023, net loan and lease charge-offs increased by $2.0 million or 6 basis points annualized on total average loans and leases outstanding.

The allowance for credit losses on loans and leases was $147.5 million at June 30, 2024, a decrease of $0.2 million from March 31, 2024 and an increase of $2.1 million from June 30, 2023. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.07% at the end of the quarter, flat from the end of the prior quarter and up 3 basis points from the same quarter of 2023.

Balance Sheet

Total assets were $23.3 billion at June 30, 2024, a decrease of 0.5% from March 31, 2024 and a decrease of 6.6% from June 30, 2023. The decrease from the prior quarter was primarily due to decreases in investment securities and funds sold partially offset by an increase in cash and due from banks. The decrease from the same period in 2023 was primarily due to decreases in our investment securities and funds sold.

The investment securities portfolio was $7.1 billion at June 30, 2024, a decrease of 2.1% from March 31, 2024 and a decrease of 9.6% from June 30, 2023. This linked quarter decrease was primarily due to cashflows from the portfolio not being reinvested into securities. The decrease from the same quarter of 2023 was due to the sale of $159.1 million of investment securities in the third quarter of 2023, as well as cashflows from the portfolio not being reinvested into securities. The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.

Total loans and leases were $13.8 billion at June 30, 2024, a decrease of 0.2% from March 31, 2024 and a decrease of 0.6% from June 30, 2023. Total commercial loans were $5.8 billion at June 30, 2024, an increase of 0.7% from the prior quarter and an increase of 3.6% from the same quarter of 2023. The increase from the prior quarter was primarily due to increases in commercial mortgage and commercial and industrial portfolios. The increase from the same period in 2023 was primarily due to increases in our commercial and industrial and construction portfolios, partially offset by a decrease in commercial mortgage. Total consumer loans were $8.0 billion at June 30, 2024, a decrease of 0.8% from the prior quarter and a decrease of 3.5% from the same period in 2023. The decreases were primarily due to decreases in our residential mortgage, home equity and automobile portfolios.

Total deposits were $20.4 billion at June 30, 2024, a decrease of 1.3% from March 31, 2024 and a decrease of 0.5% from June 30, 2023. Noninterest-bearing deposits made up 26% of total deposit balances at June 30, 2024, down from 27% at March 31, 2024 and down from 29% at June 30, 2023. Average total deposits were $20.4 billion for the second quarter of 2024, down 0.9% from $20.5 billion in the prior quarter and up 1.7% from $20.0 billion in the second quarter of 2023. Insured and uninsured but collateralized deposits represented 59% of total deposit balances at June 30, 2024, up from 58% at March 31, 2024 and down from 61% at June 30, 2023. At the end of the quarter, our readily available liquidity of $10.0 billion exceeded total uninsured and uncollateralized deposits.

Capital and Dividends

The Company’s capital levels increased quarter over quarter and remain well above regulatory well-capitalized minimums.

In the second quarter of 2024, the Company issued $165 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, at a rate of 8.000%. The Company received net proceeds from the offering of $160.6 million after issuance cost.

The Tier 1 Capital Ratio was 13.99% at June 30, 2024 compared with 12.74% at March 31, 2024 and 12.21% at June 30, 2023. The Tier 1 Leverage Ratio was 8.37% at June 30, 2024, up 75 basis points from 7.62% at March 31, 2024 and up 116 basis points from 7.21% at June 30, 2023. The increases were primarily due to higher Tier 1 capital as a result of the Series B Preferred Stock offering, discussed above, retained earnings growth and decreases in risk-weighted assets and average total assets.

No shares of common stock were repurchased under the share repurchase program in the second quarter of 2024. Total remaining buyback authority under the share repurchase program was $126.0 million at June 30, 2024.

The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on September 16, 2024 to shareholders of record at the close of business on August 30, 2024.

On July 8, 2024, the Company announced that the Board of Directors declared a quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, and a quarterly dividend payment of $8.89 per share, equivalent to $0.2223 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B. The depositary shares representing the Series A Preferred Stock and Series B Preferred Stock are traded on the NYSE under the symbol “BOH.PRA” and “BOH.PRB”, respectively. The dividends on the Series A Preferred Stock and Series B Preferred Stock will be payable on August 1, 2024 to shareholders of record of the preferred stock as of the close of business on July 18, 2024.

Conference Call Information

The Company will review its second quarter financial results today at 8:00 a.m. Hawai‘i Time (2:00 p.m. Eastern Time). The call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawai‘i Corporation's website, www.boh.com. The webcast can be accessed via the link: https://register.vevent.com/register/BI199e7796d16b4ac8844dd7c346201625. A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawai‘i Time on Monday, July 22, 2024. The replay will be available on the Company's website, www.boh.com.

Investor Announcements

Investors and others should note that the Company intends to announce financial and other information to the Company’s investors using the Company’s investor relations website at https://ir.boh.com, social media channels, press releases, SEC filings and public conference calls and webcasts, all for purposes of complying with the Company’s disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, as information is updated, and new information is posted.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawai‘i Corporation's Annual Report on Form 10-K for the year ended December 31, 2023 and its Form 10-Q for fiscal quarter ended March 31, 2024, which were filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

Bank of Hawai‘i Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawai‘i and the West Pacific. The Company's principal subsidiary, Bank of Hawai‘i, was founded in 1897. For more information about Bank of Hawai‘i Corporation, see the Company’s website, www.boh.com. Bank of Hawai‘i Corporation is a trade name of Bank of Hawaii Corporation.

Bank of Hawai‘i Corporation and Subsidiaries
Financial Highlights													Table 1
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands, except per share amounts)		2024			2024			2023			2024			2023
For the Period:
Operating Results
Net Interest Income	$	114,846		$	113,938		$	124,348		$	228,784		$	260,303
Provision for Credit Losses		2,400			2,000			2,500			4,400			4,500
Total Noninterest Income		42,087			42,285			43,255			84,372			83,992
Total Noninterest Expense		109,226			105,859			104,036			215,085			215,955
Pre-Provision Net Revenue		47,707			50,364			63,567			98,071			128,340
Net Income		34,083			36,391			46,061			70,474			92,903
Net Income Available to Common Shareholders ¹		32,114			34,422			44,092			66,536			88,965
Basic Earnings Per Common Share		0.81			0.87			1.12			1.69			2.27
Diluted Earnings Per Common Share		0.81			0.87			1.12			1.68			2.26
Dividends Declared Per Common Share		0.70			0.70			0.70			1.40			1.40

Performance Ratios
Return on Average Assets		0.59	%		0.63	%		0.77	%		0.61	%		0.78	%
Return on Average Shareholders' Equity		9.53			10.34			13.55			9.93			13.90
Return on Average Common Equity		10.41			11.20			14.95			10.81			15.36
Efficiency Ratio ²		69.60			67.76			62.07			68.68			62.72
Net Interest Margin ³		2.15			2.11			2.22			2.13			2.34
Dividend Payout Ratio ⁴		86.42			80.46			62.50			82.84			61.67
Average Shareholders' Equity to Average Assets		6.22			6.08			5.65			6.15			5.62

Average Balances
Average Loans and Leases	$	13,831,797		$	13,868,800		$	13,876,754		$	13,850,299		$	13,797,559
Average Assets		23,145,107			23,281,566			24,114,443			23,213,336			23,990,649
Average Deposits		20,358,393			20,543,640			20,018,601			20,451,017			20,223,603
Average Shareholders' Equity		1,438,476			1,416,102			1,363,059			1,427,289			1,348,057

Per Share of Common Stock
Book Value	$	31.91		$	31.62		$	29.66		$	31.91		$	29.66
Tangible Book Value		31.12			30.83			28.87			31.12			28.87
Market Value
Closing		57.21			62.39			41.23			57.21			41.23
High		62.53			73.73			52.37			73.73			81.73
Low		54.50			58.38			30.83			54.50			30.83

				June 30,			March 31,			December 31,			June 30,
					2024			2024			2023			2023
As of Period End:
Balance Sheet Totals
Loans and Leases				$	13,831,266		$	13,853,837		$	13,965,026		$	13,914,889
Total Assets					23,300,768			23,420,860			23,733,296			24,947,936
Total Deposits					20,408,502			20,676,586			21,055,045			20,508,615
Other Debt					560,136			560,163			560,190			1,760,243
Total Shareholders' Equity					1,612,849			1,435,977			1,414,242			1,358,279

Asset Quality
Non-Performing Assets				$	15,179		$	11,838		$	11,747		$	11,477
Allowance for Credit Losses - Loans and Leases					147,477			147,664			146,403			145,367
Allowance to Loans and Leases Outstanding ⁵					1.07	%		1.07	%		1.05	%		1.04	%

Capital Ratios ⁶
Common Equity Tier 1 Capital Ratio					11.59	%		11.50	%		11.33	%		11.00	%
Tier 1 Capital Ratio					13.99			12.74			12.56			12.21
Total Capital Ratio					15.05			13.81			13.60			13.24
Tier 1 Leverage Ratio					8.37			7.62			7.51			7.21
Total Shareholders' Equity to Total Assets					6.92			6.13			5.96			5.44
Tangible Common Equity to Tangible Assets ⁷					5.31			5.24			5.07			4.60
Tangible Common Equity to Risk-Weighted Assets ⁷					8.82			8.70			8.45			7.97

Non-Financial Data
Full-Time Equivalent Employees					1,910			1,891			1,899			2,025
Branches					50			50			51			51
ATMs					317			315			318			320

¹ Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
² Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
³ Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
⁴ Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.
⁵ The numerator comprises the Allowance for Credit Losses - Loans and Leases.
⁶ Regulatory capital ratios as of June 30, 2024 are preliminary.
⁷ Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. Tangible common equity is defined by the Company as common shareholders' equity minus goodwill. See Table 2 "Reconciliation of Non-GAAP Financial Measures".

Bank of Hawai‘i Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures										Table 2
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands)		2024			2024			2023			2023

Total Shareholders' Equity	$	1,612,849		$	1,435,977		$	1,414,242		$	1,358,279
Less: Preferred Stock		345,000			180,000			180,000			180,000
Goodwill		31,517			31,517			31,517			31,517
Tangible Common Equity	$	1,236,332		$	1,224,460		$	1,202,725		$	1,146,762

Total Assets	$	23,300,768		$	23,420,860		$	23,733,296		$	24,947,936
Less: Goodwill		31,517			31,517			31,517			31,517
Tangible Assets	$	23,269,251		$	23,389,343		$	23,701,779		$	24,916,419


Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements ¹	$	14,021,387		$	14,071,841		$	14,226,780		$	14,391,943

Total Shareholders' Equity to Total Assets		6.92	%		6.13	%		5.96	%		5.44	%
Tangible Common Equity to Tangible Assets (Non-GAAP)		5.31	%		5.24	%		5.07	%		4.60	%

Tier 1 Capital Ratio ¹		13.99	%		12.74	%		12.56	%		12.21	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) ¹		8.82	%		8.70	%		8.45	%		7.97	%

¹ Regulatory capital ratios as of June 30, 2024 are preliminary.

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Income													Table 3
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands, except per share amounts)		2024			2024			2023			2024			2023
Interest Income
Interest and Fees on Loans and Leases	$	163,208		$	159,336		$	144,541		$	322,544		$	281,042
Income on Investment Securities
Available-for-Sale		21,468			21,757			23,301			43,225			47,194
Held-to-Maturity		21,595			22,136			23,375			43,731			47,323
Deposits		25			30			18			55			45
Funds Sold		6,114			6,127			6,395			12,241			9,761
Other		1,120			970			2,121			2,090			2,718
Total Interest Income		213,530			210,356			199,751			423,886			388,083
Interest Expense
Deposits		91,542			89,056			53,779			180,598			91,573
Securities Sold Under Agreements to Repurchase		1,180			1,443			5,436			2,623			10,813
Funds Purchased		44			-			184			44			888
Short-Term Borrowings		-			-			2,510			-			5,713
Other Debt		5,918			5,919			13,494			11,837			18,793
Total Interest Expense		98,684			96,418			75,403			195,102			127,780
Net Interest Income		114,846			113,938			124,348			228,784			260,303
Provision for Credit Losses		2,400			2,000			2,500			4,400			4,500
Net Interest Income After Provision for Credit Losses		112,446			111,938			121,848			224,384			255,803
Noninterest Income
Trust and Asset Management		12,223			11,189			11,215			23,412			21,905
Mortgage Banking		1,028			951			1,176			1,979			2,180
Service Charges on Deposit Accounts		7,730			7,947			7,587			15,677			15,324
Fees, Exchange, and Other Service Charges		13,769			14,123			14,150			27,892			27,958
Investment Securities Losses, Net		(1,601	)		(1,497	)		(1,310	)		(3,098	)		(3,102	)
Annuity and Insurance		1,583			1,046			1,038			2,629			2,309
Bank-Owned Life Insurance		3,396			3,356			2,876			6,752			5,718
Other		3,959			5,170			6,523			9,129			11,700
Total Noninterest Income		42,087			42,285			43,255			84,372			83,992
Noninterest Expense
Salaries and Benefits		57,033			58,215			56,175			115,248			121,263
Net Occupancy		10,559			10,456			9,991			21,015			19,863
Net Equipment		10,355			10,103			10,573			20,458			20,948
Data Processing		4,745			4,770			4,599			9,515			9,182
Professional Fees		4,929			4,677			4,651			9,606			8,534
FDIC Insurance		7,170			3,614			3,173			10,784			6,407
Other		14,435			14,024			14,874			28,459			29,758
Total Noninterest Expense		109,226			105,859			104,036			215,085			215,955
Income Before Provision for Income Taxes		45,307			48,364			61,067			93,671			123,840
Provision for Income Taxes		11,224			11,973			15,006			23,197			30,937
Net Income	$	34,083		$	36,391		$	46,061		$	70,474		$	92,903
Preferred Stock Dividends		1,969			1,969			1,969			3,938			3,938
Net Income Available to Common Shareholders	$	32,114		$	34,422		$	44,092		$	66,536		$	88,965
Basic Earnings Per Common Share	$	0.81		$	0.87		$	1.12		$	1.69		$	2.27
Diluted Earnings Per Common Share	$	0.81		$	0.87		$	1.12		$	1.68		$	2.26
Dividends Declared Per Common Share	$	0.70		$	0.70		$	0.70		$	1.40		$	1.40
Basic Weighted Average Common Shares		39,450,551			39,350,390			39,241,559			39,400,452			39,259,279
Diluted Weighted Average Common Shares		39,618,705			39,626,463			39,317,521			39,618,774			39,382,359

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income										Table 4
	Three Months Ended							Six Months Ended
	June 30,		March 31,		June 30,			June 30,
(dollars in thousands)		2024		2024		2023			2024		2023
Net Income	$	34,083	$	36,391	$	46,061		$	70,474	$	92,903
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities		9,052		12,938		(18,217	)		21,990		11,059
Defined Benefit Plans		168		169		84			337		168
Other Comprehensive Income (Loss), Net of Tax:		9,220		13,107		(18,133	)		22,327		11,227
Comprehensive Income	$	43,303	$	49,498	$	27,928		$	92,801	$	104,130

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands)		2024			2024			2023			2023
Assets
Interest-Bearing Deposits in Other Banks	$	3,259		$	2,742		$	2,761		$	2,261
Funds Sold		624,089			673,489			690,112			1,273,109
Investment Securities
Available-for-Sale		2,298,092			2,352,051			2,408,933			2,666,723
Held-to-Maturity (Fair Value of $4,002,122; $4,104,622; $4,253,637; and $4,411,003)		4,812,954			4,913,457			4,997,335			5,202,698
Loans Held for Sale		2,664			2,182			3,124			3,359
Loans and Leases		13,831,266			13,853,837			13,965,026			13,914,889
Allowance for Credit Losses		(147,477	)		(147,664	)		(146,403	)		(145,367	)
Net Loans and Leases		13,683,789			13,706,173			13,818,623			13,769,522
Total Earning Assets		21,424,847			21,650,094			21,920,888			22,917,672
Cash and Due from Banks		297,990			215,290			308,071			398,072
Premises and Equipment, Net		192,319			192,486			194,855			200,297
Operating Lease Right-of-Use Assets		84,757			85,501			86,110			89,286
Accrued Interest Receivable		67,554			67,887			66,525			64,720
Foreclosed Real Estate		2,672			2,672			2,098			1,040
Mortgage Servicing Rights		19,954			20,422			20,880			21,626
Goodwill		31,517			31,517			31,517			31,517
Bank-Owned Life Insurance		470,708			468,206			462,894			456,889
Other Assets		708,450			686,785			639,458			766,817
Total Assets	$	23,300,768		$	23,420,860		$	23,733,296		$	24,947,936

Liabilities
Deposits
Noninterest-Bearing Demand	$	5,371,593		$	5,542,930		$	6,058,554		$	5,968,344
Interest-Bearing Demand		3,928,295			3,823,224			3,749,717			4,119,166
Savings		8,207,902			8,231,245			8,189,472			7,756,426
Time		2,900,712			3,079,187			3,057,302			2,664,679
Total Deposits		20,408,502			20,676,586			21,055,045			20,508,615
Securities Sold Under Agreements to Repurchase		100,490			150,490			150,490			725,490
Other Debt		560,136			560,163			560,190			1,760,243
Operating Lease Liabilities		93,364			94,104			94,693			97,768
Retirement Benefits Payable		23,142			23,365			23,673			26,434
Accrued Interest Payable		37,278			37,081			41,023			26,737
Taxes Payable		5,289			7,378			7,636			132
Other Liabilities		459,718			435,716			386,304			444,238
Total Liabilities		21,687,919			21,984,883			22,319,054			23,589,657
Shareholders' Equity
Preferred Stock (Series A, $.01 par value; authorized 180,000 shares issued and outstanding)		180,000			180,000			180,000			180,000
Preferred Stock (Series B, $.01 par value; authorized 165,000 shares issued and outstanding)		165,000			-			-			-
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2024 - 58,765,907 / 39,729,941; March 31, 2024 - 58,753,708 / 39,720,724; December 31, 2023 - 58,755,465 / 39,753,138; and June 30, 2023 - 58,771,036 / 39,725,348)		585			584			583			583
Capital Surplus		639,841			640,663			636,422			628,202
Accumulated Other Comprehensive Loss		(374,361	)		(383,581	)		(396,688	)		(423,431	)
Retained Earnings		2,119,140			2,114,729			2,107,569			2,091,289
Treasury Stock, at Cost (Shares: June 30, 2024 - 19,035,966; March 31, 2024 - 19,032,984; December 31, 2023 - 19,002,327; and June 30, 2023 - 19,045,688)		(1,117,356	)		(1,116,418	)		(1,113,644	)		(1,118,364	)
Total Shareholders' Equity		1,612,849			1,435,977			1,414,242			1,358,279
Total Liabilities and Shareholders' Equity	$	23,300,768		$	23,420,860		$	23,733,296		$	4,947,936

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																							Table 6
														Accumulated
	Preferred			Preferred										Other
	Shares	Preferred		Shares	Preferred		Common							Comprehensive
	Series A	Series A		Series B	Series B		Shares		Common		Capital			Income			Retained			Treasury
(dollars in thousands)	Outstanding	Stock		Outstanding	Stock		Outstanding		Stock		Surplus			(Loss)			Earnings			Stock			Total
Balance as of December 31, 2023	180,000	$	180,000	-	$	-	39,753,138		$	583	$	636,422		$	(396,688	)	$	2,107,569		$	(1,113,644	)	$	1,414,242
Net Income	-		-	-		-	-			-		-			-			70,474			-			70,474
Other Comprehensive Income	-		-	-		-	-			-		-			22,327			-			-			22,327
Share-Based Compensation	-		-	-		-	-			-		7,505			-			-			-			7,505
Preferred Stock Issued, Net	-		-	165,000		165,000	-			-		(4,386	)		-			-			-			160,614
Common Stock Issued under Purchase and
Equity Compensation Plans	-		-	-		-	57,972			2		300			-			1,152			1,283			2,737
Common Stock Repurchased	-		-	-		-	(81,169	)		-		-			-			-			(4,995	)		(4,995	)
Cash Dividends Declared Common Stock ($1.40 per share)	-		-	-		-	-			-		-			-			(56,117	)		-			(56,117	)
Cash Dividends Declared Preferred Stock	-		-	-		-	-			-		-			-			(3,938	)		-			(3,938	)
Balance as of June 30, 2024	180,000	$	180,000	165,000	$	165,000	39,729,941		$	585	$	639,841		$	(374,361	)	$	2,119,140		$	(1,117,356	)	$	1,612,849

Balance as of December 31, 2022	180,000	$	180,000	-	$	-	39,835,750		$	582	$	620,578		$	(434,658	)	$	2,055,912		$	(1,105,419	)	$	1,316,995
Net Income	-		-	-		-	-			-		-			-			92,903			-			92,903
Other Comprehensive Income	-		-	-		-	-			-		-			11,227			-			-			11,227
Share-Based Compensation	-		-	-		-	-			-		7,672			-			-			-			7,672
Common Stock Issued under Purchase and
Equity Compensation Plans	-		-	-		-	94,765			1		(48	)		-			2,286			986			3,225
Common Stock Repurchased	-		-	-		-	(205,167	)		-		-			-			-			(13,931	)		(13,931	)
Cash Dividends Declared Common Stock ($1.40 per share)	-		-	-		-	-			-		-			-			(55,874	)		-			(55,874	)
Cash Dividends Declared Preferred Stock	-		-	-		-	-			-		-			-			(3,938	)		-			(3,938	)
Balance as of June 30, 2023	180,000	$	180,000	-	$	-	39,725,348		$	583	$	628,202		$	(423,431	)	$	2,091,289		$	(1,118,364	)	$	1,358,279

Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis ¹															Table 7a
	Three Months Ended						Three Months Ended						Three Months Ended
	June 30, 2024						March 31, 2024						June 30, 2023
	Average		Income /		Yield /		Average		Income /		Yield /		Average		Income /		Yield /
(dollars in millions)	Balance		Expense ²		Rate		Balance		Expense ²		Rate		Balance		Expense ²		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	4.3	$	-	2.40	%	$	4.8	$	-	2.51	%	$	5.1	$	-	1.48	%
Funds Sold		455.8		6.1	5.31			455.9		6.1	5.32			500.1		6.4	5.06
Investment Securities
Available-for-Sale
Taxable		2,308.3		21.5	3.73			2,380.4		21.8	3.66			2,741.1		23.2	3.39
Non-Taxable		1.6		-	2.01			1.7		-	1.99			9.6		0.1	4.40
Held-to-Maturity
Taxable		4,837.2		21.4	1.77			4,926.8		21.9	1.79			5,231.3		23.2	1.78
Non-Taxable		34.6		0.2	2.10			34.7		0.2	2.10			35.2		0.2	2.10
Total Investment Securities		7,181.7		43.1	2.40			7,343.6		43.9	2.40			8,017.2		46.7	2.33
Loans Held for Sale		1.4		-	6.30			2.2		-	6.17			2.7		-	5.50
Loans and Leases ³
Commercial and Industrial		1,683.2		22.3	5.34			1,652.5		22.0	5.36			1,456.1		17.5	4.82
Paycheck Protection Program		9.5		0.1	2.24			10.8		-	1.40			14.5		-	1.30
Commercial Mortgage		3,723.6		51.6	5.57			3,716.6		50.5	5.46			3,814.9		49.3	5.19
Construction		321.3		6.3	7.85			307.9		5.6	7.27			246.8		3.5	5.70
Commercial Lease Financing		59.3		0.3	2.28			58.4		0.3	1.87			65.4		0.3	1.67
Residential Mortgage		4,595.2		45.6	3.97			4,649.9		45.0	3.87			4,704.0		41.2	3.50
Home Equity		2,231.7		21.8	3.92			2,250.1		21.1	3.78			2,272.3		19.0	3.35
Automobile		813.5		9.1	4.52			831.0		8.9	4.30			879.3		7.7	3.53
Other ⁴		394.5		6.8	6.95			391.6		6.5	6.66			423.5		6.4	6.04
Total Loans and Leases		13,831.8		163.9	4.76			13,868.8		159.9	4.63			13,876.8		144.9	4.19
Other		62.5		1.2	7.18			62.3		1.1	6.23			94.8		2.2	8.94
Total Earning Assets		21,537.5		214.3	3.99			21,737.6		211.0	3.89			22,496.7		200.2	3.56
Cash and Due from Banks		233.4						240.8						316.6
Other Assets		1,374.2						1,303.2						1,301.1
Total Assets	$	23,145.1					$	23,281.6					$	24,114.4

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	3,788.5		8.8	0.94		$	3,764.2		7.7	0.82		$	4,037.4		7.5	0.75
Savings		8,259.2		52.0	2.53			8,131.3		49.4	2.44			7,667.6		26.6	1.39
Time		2,935.9		30.7	4.20			3,081.1		32.0	4.18			2,296.1		19.7	3.44
Total Interest-Bearing Deposits		14,983.6		91.5	2.46			14,976.6		89.1	2.39			14,001.1		53.8	1.54
Funds Purchased		3.2		-	5.37			-		-	-			14.6		0.2	5.00
Short-Term Borrowings		-		-	5.40			-		-	-			195.2		2.5	5.09
Securities Sold Under Agreements to Repurchase		121.9		1.2	3.83			150.5		1.4	3.79			725.5		5.4	2.96
Other Debt		560.2		6.0	4.25			560.1		5.9	4.25			1,255.8		13.5	4.31
Total Interest-Bearing Liabilities		15,668.9		98.7	2.53			15,687.2		96.4	2.47			16,192.2		75.4	1.87
Net Interest Income			$	115.6					$	114.6					$	124.8
Interest Rate Spread					1.46	%					1.42	%					1.69	%
Net Interest Margin					2.15	%					2.11	%					2.22	%
Noninterest-Bearing Demand Deposits		5,374.8						5,567.0						6,017.5
Other Liabilities		662.9						611.3						541.6
Shareholders' Equity		1,438.5						1,416.1						1,363.1
Total Liabilities and Shareholders' Equity	$	23,145.1					$	23,281.6					$	24,114.4

¹ Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
² Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $774,000, $690,000, and $471,000
for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively.
³ Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
⁴ Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis ¹									Table 7b
	Six Months Ended						Six Months Ended
	June 30, 2024						June 30, 2023
	Average		Income /		Yield /		Average		Income /		Yield /
(dollars in millions)	Balance		Expense ²		Rate		Balance		Expense ²		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	4.5	$	0.1	2.46	%	$	3.4	$	-	2.68	%
Funds Sold		455.9		12.2	5.31			398.6		9.8	4.87
Investment Securities
Available-for-Sale
Taxable		2,344.3		43.2	3.69			2,780.4		47.0	3.40
Non-Taxable		1.7		-	2.00			9.6		0.2	4.39
Held-to-Maturity
Taxable		4,882.0		43.4	1.78			5,283.6		47.0	1.78
Non-Taxable		34.7		0.4	2.10			35.2		0.4	2.10
Total Investment Securities		7,262.7		87.0	2.40			8,108.8		94.6	2.34
Loans Held for Sale		1.8		0.1	6.22			2.1		0.1	5.42
Loans and Leases ³
Commercial and Industrial		1,667.8		44.4	5.35			1,433.8		33.8	4.75
Paycheck Protection Program		10.2		0.1	1.79			15.7		0.1	1.86
Commercial Mortgage		3,720.1		102.1	5.52			3,776.2		94.5	5.04
Construction		314.6		11.8	7.57			263.5		7.4	5.68
Commercial Lease Financing		58.8		0.6	2.08			66.1		0.3	0.76
Residential Mortgage		4,622.6		90.7	3.92			4,685.2		81.0	3.46
Home Equity		2,240.9		42.9	3.85			2,255.9		37.2	3.33
Automobile		822.2		18.0	4.41			875.6		15.0	3.45
Other ⁴		393.1		13.3	6.80			425.6		12.5	5.94
Total Loans and Leases		13,850.3		323.9	4.70			13,797.6		281.8	4.11
Other		62.4		2.0	6.70			81.0		2.7	6.70
Total Earning Assets		21,637.6		425.3	3.94			22,391.5		389.0	3.49
Cash and Due from Banks		237.1						317.8
Other Assets		1,338.6						1,281.3
Total Assets	$	23,213.3					$	23,990.6

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	3,776.3		16.5	0.88		$	4,126.2		12.7	0.62
Savings		8,195.3		101.4	2.49			7,837.3		47.2	1.21
Time		3,008.5		62.7	4.19			2,044.4		31.7	3.12
Total Interest-Bearing Deposits		14,980.1		180.6	2.42			14,007.9		91.6	1.32
Funds Purchased		1.6		-	5.37			37.4		0.9	4.72
Short-Term Borrowings		-		-	5.40			229.9		5.7	4.94
Securities Sold Under Agreements to Repurchase		136.2		2.6	3.81			725.5		10.8	2.96
Other Debt		560.2		11.9	4.25			879.8		18.7	4.31
Total Interest-Bearing Liabilities		15,678.1		195.1	2.50			15,880.5		127.7	1.62
Net Interest Income			$	230.2					$	261.3
Interest Rate Spread					1.44	%					1.87	%
Net Interest Margin					2.13	%					2.34	%
Noninterest-Bearing Demand Deposits		5,470.9						6,215.7
Other Liabilities		637.0						546.3
Shareholders' Equity		1,427.3						1,348.1
Total Liabilities and Shareholders' Equity	$	23,213.3					$	23,990.6

¹ Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
² Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1,464,000 and $966,000
for the six months ended June 30, 2024 and June 30, 2023, respectively.
³ Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
⁴ Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended June 30, 2024
	Compared to March 31, 2024
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Investment Securities
Available-for-Sale
Taxable	$	(0.7	)	$	0.4		$	(0.3	)
Held-to-Maturity
Taxable		(0.4	)		(0.1	)		(0.5	)
Total Investment Securities		(1.1	)		0.3			(0.8	)
Loans and Leases
Commercial and Industrial		0.4			(0.1	)		0.3
Paycheck Protection Program		0.1			-			0.1
Commercial Mortgage		0.1			1.0			1.1
Construction		0.2			0.5			0.7
Residential Mortgage		(0.5	)		1.1			0.6
Home Equity		(0.2	)		0.9			0.7
Automobile		(0.2	)		0.4			0.2
Other ²		-			0.3			0.3
Total Loans and Leases		(0.1	)		4.1			4.0
Other		-			0.1			0.1
Total Change in Interest Income		(1.2	)		4.5			3.3

Change in Interest Expense:
Interest-Bearing Deposits
Demand		-			1.1			1.1
Savings		0.8			1.8			2.6
Time		(1.5	)		0.2			(1.3	)
Total Interest-Bearing Deposits		(0.7	)		3.1			2.4
Securities Sold Under Agreements to Repurchase		(0.2	)		-			(0.2	)
Other Debt		-			0.1			0.1
Total Change in Interest Expense		(0.9	)		3.2			2.3

Change in Net Interest Income	$	(0.3	)	$	1.3		$	1.0

¹ The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
² Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8b
	Three Months Ended June 30, 2024
	Compared to June 30, 2023
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(0.6	)	$	0.3		$	(0.3	)
Investment Securities
Available-for-Sale
Taxable		(3.9	)		2.2			(1.7	)
Non-Taxable		(0.1	)		-			(0.1	)
Held-to-Maturity
Taxable		(1.7	)		(0.1	)		(1.8	)
Total Investment Securities		(5.7	)		2.1			(3.6	)
Loans and Leases
Commercial and Industrial		2.8			2.0			4.8
Paycheck Protection Program		0.1			-			0.1
Commercial Mortgage		(1.2	)		3.5			2.3
Construction		1.2			1.6			2.8
Commercial Lease Financing		(0.1	)		0.1			-
Residential Mortgage		(1.0	)		5.4			4.4
Home Equity		(0.3	)		3.1			2.8
Automobile		(0.6	)		2.0			1.4
Other ²		(0.5	)		0.9			0.4
Total Loans and Leases		0.4			18.6			19.0
Other		(0.6	)		(0.4	)		(1.0	)
Total Change in Interest Income		(6.5	)		20.6			14.1

Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.5	)		1.8			1.3
Savings		2.2			23.2			25.4
Time		6.1			4.9			11.0
Total Interest-Bearing Deposits		7.8			29.9			37.7
Funds Purchased		(0.2	)		-			(0.2	)
Short-Term Borrowings		(2.6	)		0.1			(2.5	)
Securities Sold Under Agreements to Repurchase		(5.5	)		1.3			(4.2	)
Other Debt		(7.4	)		(0.1	)		(7.5	)
Total Change in Interest Expense		(7.9	)		31.2			23.3

Change in Net Interest Income	$	1.4		$	(10.6	)	$	(9.2	)

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 Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8c
	Six Months Ended June 30, 2024
	Compared to June 30, 2023
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	0.1		$	-		$	0.1
Funds Sold		1.4			1.0			2.4
Investment Securities
Available-for-Sale
Taxable		(7.7	)		3.9			(3.8	)
Non-Taxable		(0.1	)		(0.1	)		(0.2	)
Held-to-Maturity
Taxable		(3.6	)		-			(3.6	)
Total Investment Securities		(11.4	)		3.8			(7.6	)
Loans and Leases
Commercial and Industrial		5.9			4.7			10.6
Commercial Mortgage		(1.4	)		9.0			7.6
Construction		1.6			2.8			4.4
Commercial Lease Financing		-			0.3			0.3
Residential Mortgage		(1.1	)		10.8			9.7
Home Equity		(0.2	)		5.9			5.7
Automobile		(1.0	)		4.0			3.0
Other²		(1.0	)		1.8			0.8
Total Loans and Leases		2.8			39.3			42.1
Other		(0.6	)		(0.1	)		(0.7	)
Total Change in Interest Income		(7.7	)		44.0			36.3

Change in Interest Expense:
Interest-Bearing Deposits
Demand		(1.2	)		5.0			3.8
Savings		2.3			51.9			54.2
Time		18.0			13.0			31.0
Total Interest-Bearing Deposits		19.1			69.9			89.0
Funds Purchased		(1.0	)		0.1			(0.9	)
Short-Term Borrowings		(6.2	)		0.5			(5.7	)
Securities Sold Under Agreements to Repurchase		(10.7	)		2.5			(8.2	)
Other Debt		(6.6	)		(0.2	)		(6.8	)
Total Change in Interest Expense		(5.4	)		72.8			67.4

Change in Net Interest Income	$	(2.3	)	$	(28.8	)	$	(31.1	)

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 Hawai‘i Corporation and Subsidiaries
Salaries and Benefits										Table 9
	Three Months Ended							Six Months Ended
	June 30,		March 31,		June 30,			June 30,
(dollars in thousands)		2024		2024		2023			2024		2023
Salaries	$	38,662	$	38,031	$	37,962		$	76,693	$	76,579
Incentive Compensation		3,109		3,090		2,984			6,199		6,981
Share-Based Compensation		3,296		3,799		4,096			7,095		7,255
Commission Expense		939		572		775			1,511		1,422
Retirement and Other Benefits		3,961		4,299		3,489			8,260		9,377
Payroll Taxes		3,070		4,730		3,310			7,800		9,158
Medical, Dental, and Life Insurance		3,211		3,212		3,568			6,423		7,432
Separation Expense		785		482		(9	)		1,267		3,059
Total Salaries and Benefits	$	57,033	$	58,215	$	56,175		$	115,248	$	121,263

Bank of Hawai‘i Corporation and Subsidiaries
Loan and Lease Portfolio Balances									Table 10
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)		2024		2024		2023		2023		2023
Commercial
Commercial and Industrial	$	1,691,441	$	1,669,482	$	1,652,699	$	1,569,572	$	1,502,676
Paycheck Protection Program		7,997		10,177		11,369		12,529		13,789
Commercial Mortgage		3,741,140		3,715,032		3,749,016		3,784,339		3,796,769
Construction		315,571		323,069		304,463		251,507		236,428
Lease Financing		59,388		57,817		59,939		61,522		62,779
Total Commercial		5,815,537		5,775,577		5,777,486		5,679,469		5,612,441
Consumer
Residential Mortgage		4,595,586		4,616,900		4,684,171		4,699,140		4,721,976
Home Equity		2,221,073		2,240,946		2,264,827		2,285,974		2,278,105
Automobile		806,240		825,854		837,830		856,113		878,767
Other ¹		392,830		394,560		400,712		398,795		423,600
Total Consumer		8,015,729		8,078,260		8,187,540		8,240,022		8,302,448
Total Loans and Leases	$	13,831,266	$	13,853,837	$	13,965,026	$	13,919,491	$	13,914,889
¹ Comprised of other revolving credit, installment, and lease financing.

Deposits
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)		2024		2024		2023		2023		2023
Consumer	$	10,382,432	$	10,429,004	$	10,319,809	$	10,036,261	$	10,018,931
Commercial		7,995,618		8,323,330		8,601,224		8,564,536		8,019,971
Public and Other		2,030,452		1,924,252		2,134,012		2,201,512		2,469,713
Total Deposits	$	20,408,502	$	20,676,586	$	21,055,045	$	20,802,309	$	20,508,615


Average Deposits
	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)		2024		2024		2023		2023		2023
Consumer	$	10,379,724	$	10,313,730	$	10,092,727	$	9,963,690	$	9,977,239
Commercial		8,188,685		8,334,540		8,581,426		8,288,891		8,138,358
Public and Other		1,789,984		1,895,370		2,029,917		2,239,501		1,903,004
Total Deposits	$	20,358,393	$	20,543,640	$	20,704,070	$	20,492,082	$	20,018,601

Bank of Hawai‘i Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More													Table 11
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2024			2024			2023			2023			2023
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial	$	3,681		$	13		$	39		$	43		$	17
Commercial Mortgage		2,601			2,714			2,884			2,996			3,107
Total Commercial		6,282			2,727			2,923			3,039			3,124
Consumer
Residential Mortgage		2,998			3,199			2,935			3,706			3,504
Home Equity		3,227			3,240			3,791			3,734			3,809
Total Consumer		6,225			6,439			6,726			7,440			7,313
Total Non-Accrual Loans and Leases		12,507			9,166			9,649			10,479			10,437
Foreclosed Real Estate		2,672			2,672			2,098			1,040			1,040
Total Non-Performing Assets	$	15,179		$	11,838		$	11,747		$	11,519		$	11,477

Accruing Loans and Leases Past Due 90 Days or More
Consumer
Residential Mortgage	$	4,524		$	3,378		$	3,814		$	3,519		$	3,560
Home Equity		2,025			1,580			1,734			2,172			2,022
Automobile		568			517			399			393			577
Other ¹		733			872			648			643			633
Total Consumer		7,850			6,347			6,595			6,727			6,792
Total Accruing Loans and Leases Past Due 90 Days or More	$	7,850		$	6,347		$	6,595		$	6,727		$	6,792
Total Loans and Leases	$	13,831,266		$	13,853,837		$	13,965,026		$	13,919,491		$	13,914,889

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases		0.09	%		0.07	%		0.07	%		0.08	%		0.08	%

Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate		0.11	%		0.09	%		0.08	%		0.08	%		0.08	%

Ratio of Non-Performing Assets to Total Assets		0.07	%		0.05	%		0.05	%		0.05	%		0.04	%

Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate		0.11	%		0.05	%		0.05	%		0.05	%		0.06	%


Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Consumer Foreclosed Real Estate		0.11	%		0.11	%		0.11	%		0.10	%		0.10	%

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		0.17	%		0.13	%		0.13	%		0.13	%		0.13	%


Quarter to Quarter Changes in Non-Performing Assets Balance at Beginning of Quarter	$	11,838		$	11,747		$	11,519		$	11,477		$	12,124
Additions		5,257			1,652			2,683			1,318			1,116
Reductions
Payments		(844	)		(921	)		(2,018	)		(1,017	)		(226	)
Return to Accrual Status		(1,018	)		(617	)		(437	)		(259	)		(1,527	)
Charge-offs / Write-downs		(54	)		(23	)		-			-			(10	)
Total Reductions		(1,916	)		(1,561	)		(2,455	)		(1,276	)		(1,763	)
Balance at End of Quarter	$	15,179		$	11,838		$	11,747		$	11,519		$	11,477

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

Bank of Hawai‘i Corporation and Subsidiaries
Reserve for Credit Losses													Table 12
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands)		2024			2024			2023			2024			2023
Balance at Beginning of Period	$	152,148		$	152,429		$	150,579		$	152,429		$	151,247

Loans and Leases Charged-Off
Commercial
Commercial and Industrial		(875	)		(360	)		(203	)		(1,235	)		(464	)
Consumer
Residential Mortgage		(48	)		-			(6	)		(48	)		(6	)
Home Equity		(202	)		(35	)		(5	)		(237	)		(55	)
Automobile		(1,095	)		(1,048	)		(1,293	)		(2,143	)		(2,956	)
Other ¹		(2,610	)		(2,312	)		(2,004	)		(4,922	)		(4,339	)
Total Loans and Leases Charged-Off		(4,830	)		(3,755	)		(3,511	)		(8,585	)		(7,820	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial		263			116			103			379			153
Consumer
Residential Mortgage		63			42			58			105			119
Home Equity		113			184			578			297			762
Automobile		481			526			777			1,007			1,449
Other ¹		517			606			618			1,123			1,292
Total Recoveries on Loans and Leases Previously Charged-Off		1,437			1,474			2,134			2,911			3,775
Net Charged-Off - Loans and Leases		(3,393	)		(2,281	)		(1,377	)		(5,674	)		(4,045	)
Provision for Credit Losses:
Loans and Leases		3,206			3,542			3,167			6,748			4,973
Unfunded Commitments		(806	)		(1,542	)		(667	)		(2,348	)		(473	)
Total Provision for Credit Losses		2,400			2,000			2,500			4,400			4,500
Balance at End of Period	$	151,155		$	152,148		$	151,702		$	151,155		$	151,702

Components
Allowance for Credit Losses - Loans and Leases	$	147,477		$	147,664		$	145,367		$	147,477		$	145,367
Reserve for Unfunded Commitments		3,678			4,484			6,335			3,678			6,335
Total Reserve for Credit Losses	$	151,155		$	152,148		$	151,702		$	151,155		$	151,702

Average Loans and Leases Outstanding	$	13,831,797		$	13,868,800		$	13,876,754		$	13,850,299		$	13,797,559

Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)		0.10	%		0.07	%		0.04	%		0.08	%		0.06	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding ²		1.07	%		1.07	%		1.04	%		1.07	%		1.04	%

¹ Comprised of other revolving credit, installment, and lease financing.
² The numerator comprises the Allowance for Credit Losses - Loans and Leases.

Bank of Hawai‘i Corporation and Subsidiaries
Business Segments Selected Financial Information										Table 13a
	Consumer			Commercial			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			and Other			Total
Three Months Ended June 30, 2024
Net Interest Income (Loss)	$	98,205		$	50,885		$	(34,244	)	$	114,846
Provision for Credit Losses		2,873			473			(946	)		2,400
Net Interest Income (Loss) After Provision for Credit Losses		95,332			50,412			(33,298	)		112,446
Noninterest Income		33,653			6,698			1,736			42,087
Noninterest Expense		(87,011	)		(18,010	)		(4,205	)		(109,226	)
Income (Loss) Before Income Taxes		41,974			39,100			(35,767	)		45,307
Provision for Income Taxes		(10,685	)		(9,887	)		9,348			(11,224	)
Net Income (Loss)	$	31,289		$	29,213		$	(26,419	)	$	34,083
Total Assets as of June 30, 2024	$	8,357,830		$	5,835,399		$	9,107,539		$	23,300,768

Three Months Ended June 30, 2023 ¹
Net Interest Income (Loss)	$	98,114		$	52,257		$	(26,023	)	$	124,348
Provision for Credit Losses		1,392			(15	)		1,123			2,500
Net Interest Income (Loss) After Provision for Credit Losses		96,722			52,272			(27,146	)		121,848
Noninterest Income		31,944			7,939			3,372			43,255
Noninterest Expense		(81,192	)		(19,302	)		(3,542	)		(104,036	)
Income (Loss) Before Income Taxes		47,474			40,909			(27,316	)		61,067
Provision for Income Taxes		(12,219	)		(10,336	)		7,549			(15,006	)
Net Income (Loss)	$	35,255		$	30,573		$	(19,767	)	$	46,061
Total Assets as of June 30, 2023	$	8,715,172		$	5,714,929		$	10,517,835		$	24,947,936

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

Bank of Hawai‘i Corporation and Subsidiaries
Business Segments Selected Financial Information										Table 13b
	Consumer			Commercial			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			and Other			Total
Six Months Ended June 30, 2024
Net Interest Income (Loss)	$	195,199		$	102,378		$	(68,793	)	$	228,784
Provision for Credit Losses		5,160			467			(1,227	)		4,400
Net Interest Income (Loss) After Provision for Credit Losses		190,039			101,911			(67,566	)		224,384
Noninterest Income		65,635			13,492			5,245			84,372
Noninterest Expense		(169,716	)		(36,653	)		(8,716	)		(215,085	)
Income (Loss) Before Income Taxes		85,958			78,750			(71,037	)		93,671
Provision for Income Taxes		(21,865	)		(19,895	)		18,563			(23,197	)
Net Income (Loss)	$	64,093		$	58,855		$	(52,474	)	$	70,474
Total Assets as of June 30, 2024	$	8,357,830		$	5,835,399		$	9,107,539		$	23,300,768

Six Months Ended June 30, 2023 ¹
Net Interest Income (Loss)	$	194,697		$	107,798		$	(42,192	)	$	260,303
Provision for Credit Losses		4,061			(16	)		455			4,500
Net Interest Income (Loss) After Provision for Credit Losses		190,636			107,814			(42,647	)		255,803
Noninterest Income		63,098			16,588			4,306			83,992
Noninterest Expense		(166,167	)		(39,591	)		(10,197	)		(215,955	)
Income (Loss) Before Income Taxes		87,567			84,811			(48,538	)		123,840
Provision for Income Taxes		(22,493	)		(20,822	)		12,378			(30,937	)
Net Income (Loss)	$	65,074		$	63,989		$	(36,160	)	$	92,903
Total Assets as of June 30, 2023	$	8,715,172		$	5,714,929		$	10,517,835		$	24,947,936

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

Bank of Hawai‘i Corporation and Subsidiaries
Selected Quarterly Financial Data													Table 14
	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands, except per share amounts)		2024			2024			2023			2023			2023
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	163,208		$	159,336		$	158,324		$	151,245		$	144,541
Income on Investment Securities
Available-for-Sale		21,468			21,757			22,782			23,552			23,301
Held-to-Maturity		21,595			22,136			22,589			22,838			23,375
Deposits		25			30			23			18			18
Funds Sold		6,114			6,127			5,705			12,828			6,395
Other		1,120			970			924			1,464			2,121
Total Interest Income		213,530			210,356			210,347			211,945			199,751
Interest Expense
Deposits		91,542			89,056			87,121			72,153			53,779
Securities Sold Under Agreements to Repurchase		1,180			1,443			1,459			4,034			5,436
Funds Purchased		44			-			-			-			184
Short-Term Borrowings		-			-			-			-			2,510
Other Debt		5,918			5,919			5,982			14,821			13,494
Total Interest Expense		98,684			96,418			94,562			91,008			75,403
Net Interest Income		114,846			113,938			115,785			120,937			124,348
Provision for Credit Losses		2,400			2,000			2,500			2,000			2,500
Net Interest Income After Provision for Credit Losses		112,446			111,938			113,285			118,937			121,848
Noninterest Income
Trust and Asset Management		12,223			11,189			11,144			10,548			11,215
Mortgage Banking		1,028			951			1,016			1,059			1,176
Service Charges on Deposit Accounts		7,730			7,947			7,949			7,843			7,587
Fees, Exchange, and Other Service Charges		13,769			14,123			13,774			13,824			14,150
Investment Securities Losses, Net		(1,601	)		(1,497	)		(1,619	)		(6,734	)		(1,310	)
Annuity and Insurance		1,583			1,046			1,271			1,156			1,038
Bank-Owned Life Insurance		3,396			3,356			3,176			2,749			2,876
Other		3,959			5,170			5,572			19,889			6,523
Total Noninterest Income		42,087			42,285			42,283			50,334			43,255
Noninterest Expense
Salaries and Benefits		57,033			58,215			53,991			58,825			56,175
Net Occupancy		10,559			10,456			9,734			10,327			9,991
Net Equipment		10,355			10,103			9,826			9,477			10,573
Data Processing		4,745			4,770			4,948			4,706			4,599
Professional Fees		4,929			4,677			5,079			3,846			4,651
FDIC Insurance		7,170			3,614			18,545			3,361			3,173
Other		14,435			14,024			13,839			15,059			14,874
Total Noninterest Expense		109,226			105,859			115,962			105,601			104,036
Income Before Provision for Income Taxes		45,307			48,364			39,606			63,670			61,067
Provision for Income Taxes		11,224			11,973			9,210			15,767			15,006
Net Income	$	34,083		$	36,391		$	30,396		$	47,903		$	46,061
Preferred Stock Dividends		1,969			1,969			1,969			1,969			1,969
Net Income Available to Common Shareholders	$	32,114		$	34,422		$	28,427		$	45,934		$	44,092

Basic Earnings Per Common Share	$	0.81		$	0.87		$	0.72		$	1.17		$	1.12
Diluted Earnings Per Common Share	$	0.81		$	0.87		$	0.72		$	1.17		$	1.12

Balance Sheet Totals
Loans and Leases	$	13,831,266		$	13,853,837		$	13,965,026		$	13,919,491		$	13,914,889
Total Assets		23,300,768			23,420,860			23,733,296			23,549,785			24,947,936
Total Deposits		20,408,502			20,676,586			21,055,045			20,802,309			20,508,615
Total Shareholders' Equity		1,612,849			1,435,977			1,414,242			1,363,840			1,358,279

Performance Ratios
Return on Average Assets		0.59	%		0.63	%		0.51	%		0.78	%		0.77	%
Return on Average Shareholders' Equity		9.53			10.34			8.86			13.92			13.55
Return on Average Common Equity		10.41			11.20			9.55			15.38			14.95
Efficiency Ratio ¹		69.60			67.76			73.36			61.66			62.07
Net Interest Margin ²		2.15			2.11			2.13			2.13			2.22

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.

Bank of Hawai‘i Corporation and Subsidiaries
Hawaii Economic Trends													Table 15
	Five Months Ended				Year Ended
(dollars in millions; jobs in thousands)	May 31, 2024				December 31, 2023					December 31, 2022
Hawaii Economic Trends
State General Fund Revenues¹	$	4,192.4	(0.3	)%	$	9,504.1		0.7	%	$	9,441.3		16.0	%
General Excise and Use Tax Revenue¹		1,912.5	(0.2	)		4,474.1		4.9			4,263.4		18.3
Jobs ²		649.5				655.2					653.3

								May 31,		December 31,
								2024		2023			2022
Unemployment, seasonally adjusted²
Statewide								3.0	%		3.0	%	3.2	%
Honolulu County								2.9			2.6		3.1
Hawaii County								3.0			2.8		3.5
Maui County								3.6			6.2		3.5
Kauai County								2.9			2.5		3.1

					June 30,			December 31,
(1-year percentage change, except months of inventory)						2024		2023			2022		2021
Housing Trends (Single Family Oahu) ³
Median Home Price						3.3	%	(5.0	)%		11.6	%	19.3	%
Home Sales Volume (units)						6.7	%	(26.3	)%		(23.2	)%	17.9	%
Months of Inventory						3.0		2.8			2.1		0.8

					Monthly Visitor Arrivals,					Percentage Change
(in thousands, except percent change)					Not Seasonally Adjusted					from Previous Year
Tourism ⁴
May 31, 2024								757.8					(4.1	)%
April 30, 2024								721.9					(10.5	)
March 31, 2024								843.5					(5.5	)
February 29, 2024								752.7					2.6
January 31, 2024								745.6					(3.8	)
December 31, 2023								845.6					(1.5	)
November 30, 2023								720.3					0.2
October 31, 2023								700.3					(3.7	)
September 30, 2023								643.1					(7.1	)
August 31, 2023								766.0					(7.7	)
July 31, 2023								929.4					1.2
June 30, 2023								886.0					5.3
May 31, 2023								790.5					2.1
April 30, 2023								806.2					(0.4	)
March 31, 2023								892.2					13.6
February 28, 2023								733.6					17.6
January 31, 2023								775.1					36.7
December 31, 2022								858.3					14.0
November 30, 2022								719.0					17.1
October 31, 2022								727.4					32.1
September 30, 2022								692.2					37.2
August 31, 2022								829.8					14.8
July 31, 2022								918.6					4.4
June 30, 2022								841.8					6.4
May 31, 2022								774.1					22.9

¹ Source: Hawaii Department of Business, Economic Development & Tourism
² Source: U.S. Bureau of Labor Statistics
³Source: Honolulu Board of Realtors
⁴Source: Hawaii Tourism Authority

View source version on businesswire.com: https://www.businesswire.com/news/home/20240722713291/en/

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Bank of Hawai‘i Corporation Second Quarter 2024 Financial Results

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