Bank of Hawai‘i Corporation Third Quarter 2024 Financial Results

Business Wire

Mon, Oct 28, 2024, 4:45 AM 18 min read

HONOLULU, October 28, 2024--(BUSINESS WIRE)--Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $0.93 for the third quarter of 2024, compared with diluted earnings per common share of $0.81 in the linked quarter and $1.17 in the same period last year. Net income for the third quarter of 2024 was $40.4 million, up 18.4% from the linked quarter and down 15.8% from the same period last year. The return on average common equity for the third quarter of 2024 was 11.50% compared with 10.41% during the linked quarter and 15.38% during the same period last year.

"For the third quarter 2024, we are pleased to report improved net interest income and noninterest income, alongside controlled expenses and steady loan and deposit performance. Credit remained excellent," said Peter Ho, Chairman and CEO.

Financial Highlights

Net interest income for the third quarter of 2024 was $117.6 million, an increase of 2.4% from the linked quarter and a decrease of 2.7% as compared to the same period last year. The increase from the previous quarter was primarily due to increases in the average balance and yield on our earning assets, partially offset by increases in the average balance and cost of our interest-bearing liabilities. The decrease from same period last year was primarily due to decreases in the average balance of our earnings assets and higher funding costs, partially offset by higher earning asset yields and lower average balance of our interest-bearing liabilities.

Net interest margin was 2.18% in the third quarter of 2024, an increase of 3 basis points from the linked quarter and an increase of 5 basis points from the same period last year. The increase from the linked quarter was primarily due to higher earning asset yields, partially offset by higher funding costs. The increase from the same period last year was primarily due to higher earning asset yields and lower average balance of our earning assets, partially offset by higher funding costs.

The average yield on loans and leases was 4.82% in the third quarter of 2024, up 6 basis points from the linked quarter and up 48 basis points from the same period last year. The average yield on total earning assets was 4.06% in the third quarter of 2024, up 7 basis points from the linked quarter and up 34 basis points from the same period last year. The average cost of interest-bearing deposits was 2.52% in the third quarter of 2024, up 6 basis points from the linked quarter and up 57 basis points from the same period last year. The average cost of total deposits, including noninterest-bearing deposits, was 1.87%, up 6 basis points from the linked quarter and up 47 basis points from the same period last year. The changes in yields and rates over the linked quarter and year over year period reflected deposit mix shift and repricing.

Noninterest income was $45.1 million in the third quarter of 2024, an increase of 7.2% from the linked quarter and a decrease of 10.4% from the same period in 2023. Noninterest income in the third quarter of 2023 included a $14.7 million gain from the early termination of private repurchase agreements, partially offset by a $4.6 million net loss related to investment securities sales and a negative $0.8 million adjustment related to a change in the Visa Class B conversion ratio. Adjusted for these items, noninterest income increased by 9.9% from adjusted noninterest income in the same period in 2023. The increase from the same period last year was primarily due to increases in trust and asset management income, and fees, exchange, and other service charges.

Noninterest expense was $107.1 million in the third quarter of 2024, a decrease of 2.0% from the linked quarter and an increase of 1.4% from the same period last year. Noninterest expense in the second quarter of 2024 included an industry-wide FDIC Special Assessment of $2.6 million, separation expenses of $0.8 million and $0.6 million of other expenses that are not expected to recur in 2024. Noninterest expense in the third quarter of 2023 included separation expenses of $2.1 million and extraordinary expenses related to the Maui wildfires of $0.4 million. Adjusted for these items, noninterest expense increased by 1.7% from adjusted noninterest expense in the linked quarter and increased by 3.9% from adjusted noninterest expense in the same period last year.

The effective tax rate for the third quarter of 2024 was 23.33% compared with 24.77% during the linked quarter and 24.76% during the same period last year. The lower effective tax rate in the third quarter of 2024 as compared to the linked quarter was mainly due to a decrease in discrete items and an increase in tax exempt income. The lower effective tax rate in the third quarter of 2024 as compared to the same period last year was primarily due to an increase in tax benefits from low-income housing investments and an increase in tax exempt income.

Asset Quality

The Company’s overall asset quality remained strong during the third quarter of 2024. Provision for credit losses for the third quarter of 2024 was $3.0 million compared with $2.4 million in the linked quarter and $2.0 million in the same period last year.

Total non-performing assets were $19.8 million at September 30, 2024, up $4.6 million from June 30, 2024 and up $8.3 million from September 30, 2023. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.14% at the end of the quarter, an increase of 3 basis points from the linked quarter and an increase of 6 basis points from the same period last year.

Net loan and lease charge-offs during the third quarter of 2024 were $3.8 million or 11 basis points annualized of total average loans and leases outstanding and comprised of gross charge-offs of $5.3 million partially offset by gross recoveries of $1.5 million. Compared to the linked quarter, net loan and lease charge-offs increased by $0.4 million or 1 basis point annualized on total average loans and leases outstanding. Compared to the same period last year, net loan and lease charge-offs increased by $1.8 million or 5 basis points annualized on total average loans and leases outstanding.

The allowance for credit losses on loans and leases was $147.3 million at September 30, 2024, a decrease of $0.1 million from June 30, 2024 and an increase of $2.1 million from September 30, 2023. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.06% at the end of the quarter, down 1 basis point from the linked quarter and up 2 basis points from the same period last year.

Balance Sheet

Total assets were $23.8 billion at September 30, 2024, an increase of 2.1% from June 30, 2024 and an increase of 1.1% from September 30, 2023. The increase from the prior periods was primarily due to an increase in federal funds sold.

The investment securities portfolio was $7.3 billion at September 30, 2024, an increase of 2.1% from June 30, 2024 and a decrease of 2.9% from September 30, 2023. This linked quarter increase was primarily due to the purchases of $236.1 million of floating rate investment securities partially offset by cashflows from the portfolio. The decrease from the same period last year was primarily due to the sale of $159.1 million of investment securities in the third quarter of 2023 and cashflows from the portfolio, partially offset by the above-mentioned purchase of investment securities in the third quarter of 2024. 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 $13.9 billion at September 30, 2024, an increase of 0.6% from June 30, 2024 and flat from September 30, 2023. Total commercial loans were $5.9 billion at September 30, 2024, an increase of 2.0% from June 30, 2024 and an increase of 4.4% from September 30, 2023. The increase from the linked quarter was primarily due to an increase in commercial mortgage portfolio. The increase from the same period last year was primarily due to increases in commercial mortgage, construction and commercial and industrial portfolios. Total consumer loans were $8.0 billion at September 30, 2024, a decrease of 0.3% from the linked quarter and a decrease of 3.1% from the same period last year. The decrease from the linked quarter was primarily due to decreases in our home equity and automobile portfolios, partially offset by an increase in residential mortgage portfolio. The decrease from the same period last year was primarily due to decreases in our residential mortgage, home equity and automobile portfolios.

Total deposits were $21.0 billion at September 30, 2024, an increase of 2.8% from June 30, 2024 and an increase of 0.8% from September 30, 2023. Noninterest-bearing deposits made up 25.8% of total deposit balances at September 30, 2024, down from 26.3% at June 30, 2024 and down from 27.3% at September 30, 2023. Average total deposits were $20.5 billion for the third quarter of 2024, up 0.6% from $20.4 billion in the linked quarter and flat from the same period last year. Insured and uninsured but collateralized deposits represented 58% of total deposit balances at September 30, 2024, down from 59% at June 30, 2024 and flat from September 30, 2023. At the end of the quarter, our readily available liquidity of $10.6 billion exceeded total uninsured and uncollateralized deposits of $8.8 billion.

Capital and Dividends

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

The Tier 1 Capital Ratio was 14.05% at September 30, 2024 compared with 13.96% at June 30, 2024 and 12.53% at September 30, 2023. The Tier 1 Leverage Ratio was 8.38% at September 30, 2024, up 1 basis point from 8.37% at June 30, 2024 and up 116 basis points from 7.22% at September 30, 2023. The increases from the linked quarter were due to retained earnings growth and partially offset by increases in risk-weighted assets and average total assets. The increases from the same period last year were primarily due to the issuance of $165.0 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, at a rate of 8.00% in the second quarter of 2024.

No shares of common stock were repurchased under the share repurchase program in the third quarter of 2024. Total remaining buyback authority under the share repurchase program was $126.0 million at September 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 December 13, 2024 to shareholders of record at the close of business on November 29, 2024.

On October 4, 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 $20.00 per share, equivalent to $0.5000 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 November 1, 2024 to shareholders of record of the preferred stock as of the close of business on October 17, 2024.

Conference Call Information

The Company will review its third quarter financial results today at 8:00 a.m. Hawai‘i Time (2:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawai‘i Corporation's website, www.boh.com. The webcast can be accessed via the link: https://register.vevent.com/register/BIe5723fafb08d499d83a299d646fa683d. A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawai‘i Time on Monday, October 28, 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 quarters ended March 31, 2024 and June 30, 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									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share amounts)		2024			2024			2023			2024			2023
For the Period:
Operating Results
Net Interest Income	$	117,618		$	114,846		$	120,937		$	346,402		$	381,240
Provision for Credit Losses		3,000			2,400			2,000			7,400			6,500
Total Noninterest Income		45,110			42,087			50,334			129,482			134,326
Total Noninterest Expense		107,092			109,226			105,601			322,177			321,556
Pre-Provision Net Revenue		55,636			47,707			65,670			153,707			194,010
Net Income		40,358			34,083			47,903			110,832			140,806
Net Income Available to Common Shareholders¹		36,922			32,114			45,934			103,458			134,899
Basic Earnings Per Common Share		0.94			0.81			1.17			2.62			3.44
Diluted Earnings Per Common Share		0.93			0.81			1.17			2.61			3.42
Dividends Declared Per Common Share		0.70			0.70			0.70			2.10			2.10

Performance Ratios
Return on Average Assets		0.69	%		0.59	%		0.78	%		0.64	%		0.78	%
Return on Average Shareholders' Equity		9.90			9.53			13.92			9.92			13.91
Return on Average Common Equity		11.50			10.41			15.38			11.04			15.37
Efficiency Ratio²		65.81			69.60			61.66			67.70			62.37
Net Interest Margin³		2.18			2.15			2.13			2.15			2.27
Dividend Payout Ratio⁴		74.47			86.42			59.83			80.15			61.05
Average Shareholders' Equity to Average Assets		6.95			6.22			5.60			6.42			5.61

Average Balances
Average Loans and Leases	$	13,809,977		$	13,831,797		$	13,903,214		$	13,836,760		$	13,833,164
Average Assets		23,338,529			23,145,107			24,387,421			23,255,372			24,124,360
Average Deposits		20,484,391			20,358,393			20,492,082			20,462,222			20,314,079
Average Shareholders' Equity		1,621,936			1,438,476			1,365,143			1,492,645			1,353,815

Per Share of Common Stock
Book Value	$	33.22		$	31.91		$	29.78		$	33.22		$	29.78
Tangible Book Value		32.43			31.12			28.99			32.43			28.99
Market Value
Closing		62.77			57.21			49.69			62.77			49.69
High		70.44			62.53			58.63			73.73			81.73
Low		55.75			54.50			39.02			54.50			30.83

				September 30,			June 30,			December 31,			September 30,
					2024			2024			2023			2023
As of Period End:
Balance Sheet Totals
Loans and Leases				$	13,918,583		$	13,831,266		$	13,965,026		$	13,919,491
Total Assets					23,799,174			23,300,768			23,733,296			23,549,785
Total Deposits					20,978,322			20,408,502			21,055,045			20,802,309
Other Debt					558,297			560,136			560,190			560,217
Total Shareholders' Equity					1,665,474			1,612,849			1,414,242			1,363,840

Asset Quality
Non-Performing Assets				$	19,781		$	15,179		$	11,747		$	11,519
Allowance for Credit Losses - Loans and Leases					147,331			147,477			146,403			145,263
Allowance to Loans and Leases Outstanding⁵					1.06	%		1.07	%		1.05	%		1.04	%

Capital Ratios⁶
Common Equity Tier 1 Capital Ratio⁷					11.66	%		11.56	%		11.33	%		11.29	%
Tier 1 Capital Ratio⁷					14.05			13.96			12.56			12.53
Total Capital Ratio⁷					15.11			15.02			13.60			13.56
Tier 1 Leverage Ratio					8.38			8.37			7.51			7.22
Total Shareholders' Equity to Total Assets					7.00			6.92			5.96			5.79
Tangible Common Equity to Tangible Assets⁸					5.42			5.31			5.07			4.90
Tangible Common Equity to Risk-Weighted Assets^{7, 8}					9.17			8.80			8.45			8.10

Non-Financial Data
Full-Time Equivalent Employees					1,854			1,910			1,899			1,919
Branches					50			50			51			51
ATMs					317			317			318			320

¹Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
²Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
³Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
⁴Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.
⁵The numerator comprises the Allowance for Credit Losses - Loans and Leases.
⁶Regulatory capital ratios as of September 30, 2024 are preliminary.
⁷Regulatory capital ratios for June 30, 2024 have been updated to reflect final reported ratios.
⁸Tangible 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
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands)		2024			2024			2023			2023

Total Shareholders' Equity	$	1,665,474		$	1,612,849		$	1,414,242		$	1,363,840
Less: Preferred Stock		345,000			345,000			180,000			180,000
Goodwill		31,517			31,517			31,517			31,517
Tangible Common Equity	$	1,288,957		$	1,236,332		$	1,202,725		$	1,152,323

Total Assets	$	23,799,174		$	23,300,768		$	23,733,296		$	23,549,785
Less: Goodwill		31,517			31,517			31,517			31,517
Tangible Assets	$	23,767,657		$	23,269,251		$	23,701,779		$	23,518,268

Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements^{1, 2}	$	14,054,698		$	14,051,627		$	14,226,780		$	14,222,825

Total Shareholders' Equity to Total Assets		7.00	%		6.92	%		5.96	%		5.79	%
Tangible Common Equity to Tangible Assets (Non-GAAP)		5.42	%		5.31	%		5.07	%		4.90	%

Tier 1 Capital Ratio^{1, 2}		14.05	%		13.96	%		12.56	%		12.53	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)^{1, 2}		9.17	%		8.80	%		8.45	%		8.10	%

¹Regulatory capital ratios as of September 30, 2024 are preliminary.
²Regulatory capital ratios for June 30, 2024 have been updated to reflect final reported ratios.


Bank of Hawai‘i 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)		2024			2024			2023			2024			2023
Interest Income
Interest and Fees on Loans and Leases	$	166,286		$	163,208		$	151,245		$	488,830		$	432,287
Income on Investment Securities
Available-for-Sale		23,257			21,468			23,552			66,482			70,746
Held-to-Maturity		21,107			21,595			22,838			64,838			70,161
Deposits		29			25			18			84			63
Funds Sold		8,951			6,114			12,828			21,192			22,589
Other		1,018			1,120			1,464			3,108			4,182
Total Interest Income		220,648			213,530			211,945			644,534			600,028
Interest Expense
Deposits		96,067			91,542			72,153			276,665			163,726
Securities Sold Under Agreements to Repurchase		993			1,180			4,034			3,616			14,847
Funds Purchased		-			44			-			44			888
Short-Term Borrowings		-			-			-			-			5,713
Other Debt		5,970			5,918			14,821			17,807			33,614
Total Interest Expense		103,030			98,684			91,008			298,132			218,788
Net Interest Income		117,618			114,846			120,937			346,402			381,240
Provision for Credit Losses		3,000			2,400			2,000			7,400			6,500
Net Interest Income After Provision for Credit Losses		114,618			112,446			118,937			339,002			374,740
Noninterest Income
Fees, Exchange, and Other Service Charges		14,945			13,769			13,824			42,837			41,782
Trust and Asset Management		11,916			12,223			10,548			35,328			32,453
Service Charges on Deposit Accounts		8,075			7,730			7,843			23,752			23,167
Bank-Owned Life Insurance		3,533			3,396			2,749			10,285			8,467
Annuity and Insurance		1,460			1,583			1,156			4,089			3,465
Mortgage Banking		1,188			1,028			1,059			3,167			3,239
Investment Securities Losses, Net		(1,103	)		(1,601	)		(6,734	)		(4,201	)		(9,836	)
Other		5,096			3,959			19,889			14,225			31,589
Total Noninterest Income		45,110			42,087			50,334			129,482			134,326
Noninterest Expense
Salaries and Benefits		58,626			57,033			58,825			173,874			180,088
Net Occupancy		10,806			10,559			10,327			31,821			30,190
Net Equipment		10,120			10,355			9,477			30,578			30,425
Professional Fees		4,725			4,929			3,846			14,331			12,380
Data Processing		4,712			4,745			4,706			14,227			13,888
FDIC Insurance		3,355			7,170			3,361			14,139			9,768
Other		14,748			14,435			15,059			43,207			44,817
Total Noninterest Expense		107,092			109,226			105,601			322,177			321,556
Income Before Provision for Income Taxes		52,636			45,307			63,670			146,307			187,510
Provision for Income Taxes		12,278			11,224			15,767			35,475			46,704
Net Income	$	40,358		$	34,083		$	47,903		$	110,832		$	140,806
Preferred Stock Dividends		3,436			1,969			1,969			7,375			5,908
Net Income Available to Common Shareholders	$	36,922		$	32,114		$	45,934		$	103,457		$	134,898
Basic Earnings Per Common Share	$	0.94		$	0.81		$	1.17		$	2.62		$	3.44
Diluted Earnings Per Common Share	$	0.93		$	0.81		$	1.17		$	2.61		$	3.42
Dividends Declared Per Common Share	$	0.70		$	0.70		$	0.70		$	2.10		$	2.10
Basic Weighted Average Common Shares		39,488,187			39,450,551			39,274,626			39,429,815			39,264,450
Diluted Weighted Average Common Shares		39,736,492			39,618,705			39,420,531			39,654,705			39,392,433


Bank of Hawai‘i 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)		2024		2024		2023			2024		2023
Net Income	$	40,358	$	34,083	$	47,903		$	110,832	$	140,806
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities		38,833		9,052		(18,264	)		60,823		(7,205	)
Defined Benefit Plans		168		168		84			505		252
Other Comprehensive Income (Loss)		39,001		9,220		(18,180	)		61,328		(6,953	)
Comprehensive Income	$	79,359	$	43,303	$	29,723		$	172,160	$	133,853


Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands, except share amounts)		2024			2024			2023			2023
Assets
Interest-Bearing Deposits in Other Banks	$	8,287		$	3,259		$	2,761		$	4,676
Funds Sold		992,854			624,089			690,112			386,086
Investment Securities
Available-for-Sale		2,550,324			2,298,092			2,408,933			2,387,324
Held-to-Maturity (Fair Value of $4,072,596; $4,002,122; $4,253,637; and $4,104,469)		4,710,245			4,812,954			4,997,335			5,088,013
Loans Held for Sale		5,048			2,664			3,124			1,450
Loans and Leases		13,918,583			13,831,266			13,965,026			13,919,491
Allowance for Credit Losses		(147,331	)		(147,477	)		(146,403	)		(145,263	)
Net Loans and Leases		13,771,252			13,683,789			13,818,623			13,774,228
Total Earning Assets		22,038,010			21,424,847			21,920,888			21,641,777
Cash and Due from Banks		271,622			297,990			308,071			261,464
Premises and Equipment, Net		191,899			192,319			194,855			196,094
Operating Lease Right-of-Use Assets		81,736			84,757			86,110			86,896
Accrued Interest Receivable		66,534			67,554			66,525			65,541
Foreclosed Real Estate		2,667			2,672			2,098			1,040
Mortgage Servicing Rights		19,571			19,954			20,880			21,273
Goodwill		31,517			31,517			31,517			31,517
Bank-Owned Life Insurance		475,263			470,708			462,894			458,260
Other Assets		620,355			708,450			639,458			785,923
Total Assets	$	23,799,174		$	23,300,768		$	23,733,296		$	23,549,785

Liabilities
Deposits
Noninterest-Bearing Demand	$	5,412,048		$	5,371,593		$	6,058,554		$	5,687,442
Interest-Bearing Demand		3,734,601			3,928,295			3,749,717			3,925,469
Savings		8,663,147			8,207,902			8,189,472			8,530,384
Time		3,168,526			2,900,712			3,057,302			2,659,014
Total Deposits		20,978,322			20,408,502			21,055,045			20,802,309
Securities Sold Under Agreements to Repurchase		100,490			100,490			150,490			150,490
Other Debt		558,297			560,136			560,190			560,217
Operating Lease Liabilities		90,356			93,364			94,693			95,453
Retirement Benefits Payable		22,870			23,142			23,673			26,074
Accrued Interest Payable		40,434			37,278			41,023			33,434
Taxes Payable		1,722			5,289			7,636			6,965
Other Liabilities		341,209			459,718			386,304			511,003
Total Liabilities		22,133,700			21,687,919			22,319,054			22,185,945
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, $.01 par value; authorized 165,000 shares issued and outstanding)		165,000			165,000			-			-
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: September 30, 2024 - 58,765,907 / 39,748,304;
June 30, 2024 - 58,765,907 / 39,729,941; December 31, 2023 - 58,755,465 / 39,753,138;
and September 30, 2023 - 58,767,820 / 39,748,700)		585			585			583			583
Capital Surplus		643,620			639,841			636,422			632,425
Accumulated Other Comprehensive Loss		(335,360	)		(374,361	)		(396,688	)		(441,611	)
Retained Earnings		2,127,585			2,119,140			2,107,569			2,108,702
Treasury Stock, at Cost (Shares: September 30, 2024 - 19,017,603; June 30, 2024 - 19,035,966;
December 31, 2023 - 19,002,327; and September 30, 2023 - 19,019,120)		(1,115,956	)		(1,117,356	)		(1,113,644	)		(1,116,259	)
Total Shareholders' Equity		1,665,474			1,612,849			1,414,242			1,363,840
Total Liabilities and Shareholders' Equity	$	23,799,174		$	23,300,768		$	23,733,296		$	23,549,785


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, except share amounts)	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	-		-	-		-	-			-		-			-			110,832			-			110,832
Other Comprehensive Income	-		-	-		-	-			-		-			61,328			-			-			61,328
Share-Based Compensation	-		-	-		-	-			-		11,051			-			-			-			11,051
Preferred Stock Issued, Net	-		-	165,000		165,000	-			-		(4,386	)		-			-			-			160,614
Common Stock Issued under Purchase and
Equity Compensation Plans	-		-	-		-	78,753			2		533			-			768			2,829			4,132
Common Stock Repurchased	-		-	-		-	(83,587	)		-		-			-			-			(5,141	)		(5,141	)
Cash Dividends Declared Common Stock ($2.10 per share)	-		-	-		-	-			-		-			-			(84,209	)		-			(84,209	)
Cash Dividends Declared Preferred Stock	-		-	-		-	-			-		-			-			(7,375	)		-			(7,375	)
Balance as of September 30, 2024	180,000	$	180,000	165,000	$	165,000	39,748,304		$	585	$	643,620		$	(335,360	)	$	2,127,585		$	(1,115,956	)	$	1,665,474

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	-		-	-		-	-			-		-			-			140,806			-			140,806
Other Comprehensive Loss	-		-	-		-	-			-		-			(6,953	)		-			-			(6,953	)
Share-Based Compensation	-		-	-		-	-			-		11,979			-			-			-			11,979
Common Stock Issued under Purchase and
Equity Compensation Plans	-		-	-		-	121,040			1		(132	)		-			1,716			3,216			4,801
Common Stock Repurchased	-		-	-		-	(208,090	)		-		-			-			-			(14,056	)		(14,056	)
Cash Dividends Declared Common Stock ($2.10 per share)	-		-	-		-	-			-		-			-			(83,824	)		-			(83,824	)
Cash Dividends Declared Preferred Stock	-		-	-		-	-			-		-			-			(5,908	)		-			(5,908	)
Balance as of September 30, 2023	180,000	$	180,000	-	$	-	39,748,700		$	583	$	632,425		$	(441,611	)	$	2,108,702		$	(1,116,259	)	$	1,363,840


Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis¹															Table 7a
	Three Months Ended						Three Months Ended						Three Months Ended
	September 30, 2024						June 30, 2024						September 30, 2023
	Average		Income /		Yield /		Average		Income /		Yield /		Average		Income /		Yield /
(dollars in millions)	Balance		Expense²		Rate		Balance		Expense²		Rate		Balance		Expense²		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	4.0	$	0.0	2.89	%	$	4.3	$	0.0	2.40	%	$	2.9	$	0.0	2.40	%
Funds Sold		663.8		9.0	5.28			455.8		6.1	5.31			944.8		12.8	5.31
Investment Securities
Available-for-Sale
Taxable		2,430.0		23.0	3.80			2,308.3		21.5	3.73			2,605.4		23.5	3.60
Non-Taxable		11.8		0.2	6.63			1.6		0.0	2.01			3.5		0.0	3.21
Held-to-Maturity
Taxable		4,735.5		21.0	1.77			4,837.2		21.4	1.77			5,118.6		22.7	1.77
Non-Taxable		34.4		0.2	2.10			34.6		0.2	2.10			35.0		0.2	2.10
Total Investment Securities		7,211.7		44.4	2.46			7,181.7		43.1	2.40			7,762.5		46.4	2.39
Loans Held for Sale		3.8		0.1	6.13			1.4		0.0	6.30			3.8		0.1	6.28
Loans and Leases³
Commercial and Industrial		1,658.1		22.6	5.43			1,683.2		22.3	5.34			1,515.0		18.9	4.96
Paycheck Protection Program		7.2		0.0	1.42			9.5		0.1	2.24			13.1		0.0	1.32
Commercial Mortgage		3,744.6		52.0	5.51			3,723.6		51.6	5.57			3,792.6		51.1	5.35
Construction		357.3		7.1	7.95			321.3		6.3	7.85			241.9		3.7	6.09
Commercial Lease Financing		59.6		0.4	2.58			59.3		0.3	2.28			62.6		0.3	1.84
Residential Mortgage		4,593.7		46.4	4.03			4,595.2		45.6	3.97			4,715.3		42.8	3.62
Home Equity		2,206.9		22.4	4.04			2,231.7		21.8	3.92			2,283.5		20.1	3.49
Automobile		795.7		9.4	4.72			813.5		9.1	4.52			868.0		8.2	3.75
Other⁴		386.9		6.9	7.13			394.5		6.8	6.95			411.2		6.5	6.24
Total Loans and Leases		13,810.0		167.2	4.82			13,831.8		163.9	4.76			13,903.2		151.6	4.34
Other		63.2		0.9	6.43			62.5		1.2	7.18			91.6		1.5	6.40
Total Earning Assets		21,756.5		221.7	4.06			21,537.5		214.3	3.99			22,708.8		212.4	3.72
Cash and Due from Banks		258.8						233.4						289.8
Other Assets		1,323.2						1,374.2						1,388.8
Total Assets	$	23,338.5					$	23,145.1					$	24,387.4

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	3,775.6		8.9	0.94		$	3,788.5		8.8	0.94		$	3,929.7		6.6	0.67
Savings		8,402.9		55.7	2.63			8,259.2		52.0	2.53			7,952.6		39.1	1.95
Time		3,008.7		31.5	4.17			2,935.9		30.7	4.20			2,767.8		26.5	3.79
Total Interest-Bearing Deposits		15,187.2		96.1	2.52			14,983.6		91.5	2.46			14,650.1		72.2	1.95
Funds Purchased		0.0		0.0	5.40			3.2		0.0	5.37			-		-	-
Short-Term Borrowings		0.0		0.0	5.40			0.0		0.0	5.40			-		-	-
Securities Sold Under Agreements to Repurchase		100.5		1.0	3.87			121.9		1.2	3.83			528.5		4.0	2.99
Other Debt		560.1		5.9	4.24			560.2		6.0	4.25			1,365.7		14.8	4.31
Total Interest-Bearing Liabilities		15,847.8		103.0	2.59			15,668.9		98.7	2.53			16,544.3		91.0	2.18
Net Interest Income			$	118.7					$	115.6					$	121.4
Interest Rate Spread					1.47	%					1.46	%					1.54	%
Net Interest Margin					2.18	%					2.15	%					2.13	%
Noninterest-Bearing Demand Deposits		5,297.2						5,374.8						5,842.0
Other Liabilities		571.6						662.9						636.0
Shareholders' Equity		1,621.9						1,438.5						1,365.1
Total Liabilities and Shareholders' Equity	$	23,338.5					$	23,145.1					$	24,387.4

¹Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
²Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1.0 million, $774 thousand, and $437 thousand for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
³Non-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.
⁴Comprised of other consumer revolving credit, installment, and consumer lease financing.


Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis¹									Table 7b
	Nine Months Ended						Nine Months Ended
	September 30, 2024						September 30, 2023
	Average		Income /		Yield /		Average		Income /		Yield /
(dollars in millions)	Balance		Expense²		Rate		Balance		Expense²		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	4.3	$	0.1	2.59	%	$	3.2	$	0.1	2.60	%
Funds Sold		525.7		21.2	5.30			582.7		22.6	5.11
Investment Securities
Available-for-Sale
Taxable		2,373.1		66.4	3.73			2,721.5		70.6	3.46
Non-Taxable		5.0		0.2	5.59			7.6		0.2	4.22
Held-to-Maturity
Taxable		4,832.9		64.4	1.78			5,227.8		69.7	1.78
Non-Taxable		34.6		0.5	2.10			35.2		0.6	2.10
Total Investment Securities		7,245.6		131.5	2.42			7,992.1		141.1	2.36
Loans Held for Sale		2.5		0.1	6.16			2.7		0.1	5.82
Loans and Leases³
Commercial and Industrial		1,664.5		67.0	5.38			1,461.2		52.7	4.82
Paycheck Protection Program		9.1		0.1	1.70			14.8		0.2	1.70
Commercial Mortgage		3,728.3		153.9	5.52			3,781.7		145.6	5.15
Construction		329.0		19.0	7.71			256.2		11.1	5.81
Commercial Lease Financing		59.1		1.0	2.25			64.9		0.5	1.11
Residential Mortgage		4,613.0		137.0	3.96			4,695.4		123.8	3.51
Home Equity		2,229.5		65.3	3.91			2,265.2		57.3	3.38
Automobile		813.3		27.5	4.51			873.0		23.2	3.55
Other⁴		391.0		20.2	6.91			420.8		19.0	6.04
Total Loans and Leases		13,836.8		491.0	4.74			13,833.2		433.4	4.19
Other		62.6		3.1	6.61			84.6		4.1	6.59
Total Earning Assets		21,677.5		647.0	3.98			22,498.5		601.4	3.57
Cash and Due from Banks		244.4						308.4
Other Assets		1,333.5						1,317.5
Total Assets	$	23,255.4					$	24,124.4

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	3,776.1		25.4	0.90		$	4,060.0		19.3	0.64
Savings		8,264.9		157.1	2.54			7,876.1		86.3	1.46
Time		3,008.6		94.2	4.18			2,288.2		58.1	3.40
Total Interest-Bearing Deposits		15,049.6		276.7	2.46			14,224.3		163.7	1.54
Funds Purchased		1.1		0.0	5.37			24.8		0.9	4.72
Short-Term Borrowings		0.0		0.0	5.40			152.4		5.7	4.94
Securities Sold Under Agreements to Repurchase		124.2		3.6	3.82			659.1		14.8	2.97
Other Debt		560.2		17.8	4.25			1,043.6		33.7	4.31
Total Interest-Bearing Liabilities		15,735.1		298.1	2.53			16,104.2		218.8	1.81
Net Interest Income			$	348.8					$	382.6
Interest Rate Spread					1.45	%					1.76	%
Net Interest Margin					2.15	%					2.27	%
Noninterest-Bearing Demand Deposits		5,412.6						6,089.8
Other Liabilities		615.1						576.6
Shareholders' Equity		1,492.6						1,353.8
Total Liabilities and Shareholders' Equity	$	23,255.4					$	24,124.4

¹Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
²Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $2.5 million and $1.4 million for the nine months ended September 30, 2024 and September 30, 2023, respectively.
³Non-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.
⁴Comprised 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 September 30, 2024
	Compared to June 30, 2024
(dollars in millions)	Volume¹			Rate¹			Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	(0.0	)	$	0.0		$	0.0
Funds Sold		3.0			(0.0	)		2.9
Investment Securities
Available-for-Sale
Taxable		1.2			0.3			1.5
Non-Taxable		0.1			0.1			0.2
Held-to-Maturity
Taxable		(0.4	)		0.1			(0.4	)
Non-Taxable		(0.0	)		(0.0	)		(0.0	)
Total Investment Securities		0.9			0.4			1.3
Loans Held for Sale		0.0			(0.0	)		0.0
Loans and Leases
Commercial and Industrial		(0.2	)		0.5			0.3
Paycheck Protection Program		(0.1	)		(0.0	)		(0.1	)
Commercial Mortgage		0.5			(0.1	)		0.4
Construction		0.8			(0.0	)		0.8
Commercial Lease Financing		0.1			0.0			0.1
Residential Mortgage		(0.0	)		0.8			0.8
Home Equity		(0.2	)		0.8			0.6
Automobile		(0.2	)		0.5			0.3
Other²		(0.1	)		0.2			0.1
Total Loans and Leases		0.6			2.8			3.3
Other		(0.0	)		(0.3	)		(0.3	)
Total Change in Interest Income		4.5			2.9			7.4

Change in Interest Expense:
Interest-Bearing Deposits
Demand		0.1			0.0			0.1
Savings		1.1			2.6			3.7
Time		1.0			(0.2	)		0.9
Total Interest-Bearing Deposits		2.2			2.4			4.6
Funds Purchased		(0.0	)		0.0			(0.0	)
Short-Term Borrowings		(0.0	)		-			(0.0	)
Securities Sold Under Agreements to Repurchase		(0.2	)		0.0			(0.2	)
Other Debt		0.0			(0.1	)		(0.0	)
Total Change in Interest Expense		1.9			2.4			4.3

Change in Net Interest Income	$	2.5		$	0.5		$	3.0

¹The 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.
²Comprised 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 September 30, 2024
	Compared to September 30, 2023
(dollars in millions)	Volume¹			Rate¹			Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	0.0		$	0.0		$	0.0
Funds Sold		(3.8	)		0.0			(3.8	)
Investment Securities
Available-for-Sale
Taxable		(1.7	)		1.2			(0.5	)
Non-Taxable		0.1			0.1			0.2
Held-to-Maturity
Taxable		(1.7	)		(0.0	)		(1.7	)
Non-Taxable		(0.0	)		(0.0	)		(0.0	)
Total Investment Securities		(3.3	)		1.3			(2.0	)
Loans Held for Sale		0.0			(0.0	)		(0.0	)
Loans and Leases
Commercial and Industrial		1.8			1.9			3.7
Paycheck Protection Program		(0.0	)		0.0			(0.0	)
Commercial Mortgage		(0.6	)		1.5			0.9
Construction		2.1			1.3			3.4
Commercial Lease Financing		0.0			0.1			0.1
Residential Mortgage		(1.1	)		4.7			3.6
Home Equity		(0.7	)		3.0			2.3
Automobile		(0.7	)		1.9			1.2
Other²		(0.5	)		0.9			0.4
Total Loans and Leases		0.3			15.3			15.6
Other		(0.5	)		0.0			(0.5	)
Total Change in Interest Income		(7.3	)		16.6			9.3

Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.3	)		2.6			2.3
Savings		2.3			14.3			16.6
Time		2.4			2.6			5.0
Total Interest-Bearing Deposits		4.4			19.5			23.9
Securities Sold Under Agreements to Repurchase		(4.0	)		1.0			(3.0	)
Other Debt		(8.7	)		(0.2	)		(8.9	)
Total Change in Interest Expense		(8.3	)		20.3			12.0

Change in Net Interest Income	$	1.0		$	(3.7	)	$	(2.7	)

¹The 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.
²Comprised 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
	Nine Months Ended September 30, 2024
	Compared to September 30, 2023
(dollars in millions)	Volume¹			Rate¹			Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	0.0		$	(0.0	)	$	0.0
Funds Sold		(2.2	)		0.8			(1.4	)
Investment Securities
Available-for-Sale
Taxable		(9.4	)		5.2			(4.2	)
Non-Taxable		(0.1	)		0.1			-
Held-to-Maturity
Taxable		(5.2	)		(0.1	)		(5.3	)
Non-Taxable		(0.0	)		(0.1	)		(0.1	)
Total Investment Securities		(14.7	)		5.1			(9.6	)
Loans Held for Sale		(0.0	)		0.0			-
Loans and Leases
Commercial and Industrial		7.8			6.5			14.3
Paycheck Protection Program		(0.1	)		(0.0	)		(0.1	)
Commercial Mortgage		(2.1	)		10.4			8.3
Construction		3.6			4.3			7.9
Commercial Lease Financing		(0.0	)		0.5			0.5
Residential Mortgage		(2.2	)		15.4			13.2
Home Equity		(0.9	)		8.9			8.0
Automobile		(1.6	)		5.9			4.3
Other²		(1.4	)		2.6			1.2
Total Loans and Leases		3.1			54.5			57.6
Other		(1.1	)		0.1			(1.0	)
Total Change in Interest Income		(14.9	)		60.5			45.6

Change in Interest Expense:
Interest-Bearing Deposits
Demand		(1.4	)		7.5			6.1
Savings		4.5			66.3			70.8
Time		20.8			15.3			36.1
Total Interest-Bearing Deposits		23.9			89.1			113.0
Funds Purchased		(1.0	)		0.1			(0.9	)
Short-Term Borrowings		(6.2	)		0.5			(5.7	)
Securities Sold Under Agreements to Repurchase		(14.6	)		3.4			(11.2	)
Other Debt		(15.4	)		(0.5	)		(15.9	)
Total Change in Interest Expense		(13.3	)		92.6			79.3

Change in Net Interest Income	$	(1.6	)	$	(32.1	)	$	(33.7	)

¹The 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.
²Comprised 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						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
(dollars in thousands)		2024		2024		2023		2024		2023
Salaries	$	38,993	$	38,662	$	39,426	$	115,686	$	116,005
Incentive Compensation		5,086		3,109		2,956		11,285		9,937
Retirement and Other Benefits		3,692		3,961		3,809		11,952		13,186
Medical, Dental, and Life Insurance		3,512		3,211		2,835		9,935		10,267
Share-Based Compensation		3,364		3,296		4,072		10,459		11,327
Payroll Taxes		2,839		3,070		2,921		10,639		12,079
Commission Expense		979		939		676		2,490		2,098
Separation Expense		161		785		2,130		1,428		5,189
Total Salaries and Benefits	$	58,626	$	57,033	$	58,825	$	173,874	$	180,088


Bank of Hawai‘i Corporation and Subsidiaries
Loan and Lease Portfolio Balances									Table 10
	September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)		2024		2024		2024		2023		2023
Commercial
Commercial Mortgage	$	3,868,566	$	3,741,140	$	3,715,032	$	3,749,016	$	3,784,339
Commercial and Industrial		1,675,347		1,691,441		1,669,482		1,652,699		1,569,572
Construction		319,150		315,571		323,069		304,463		251,507
Lease Financing		60,665		59,388		57,817		59,939		61,522
Paycheck Protection Program		6,346		7,997		10,177		11,369		12,529
Total Commercial		5,930,074		5,815,537		5,775,577		5,777,486		5,679,469
Consumer
Residential Mortgage		4,622,677		4,595,586		4,616,900		4,684,171		4,699,140
Home Equity		2,195,844		2,221,073		2,240,946		2,264,827		2,285,974
Automobile		786,910		806,240		825,854		837,830		856,113
Other¹		383,078		392,830		394,560		400,712		398,795
Total Consumer		7,988,509		8,015,729		8,078,260		8,187,540		8,240,022
Total Loans and Leases	$	13,918,583	$	13,831,266	$	13,853,837	$	13,965,026	$	13,919,491
¹Comprised of other revolving credit, installment, and lease financing.

Deposits
	September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)		2024		2024		2024		2023		2023
Consumer	$	10,340,466	$	10,382,432	$	10,429,004	$	10,319,809	$	10,036,261
Commercial		8,356,239		7,995,618		8,323,330		8,601,224		8,564,536
Public and Other		2,281,617		2,030,452		1,924,252		2,134,012		2,201,512
Total Deposits	$	20,978,322	$	20,408,502	$	20,676,586	$	21,055,045	$	20,802,309


Average Deposits
	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)		2024		2024		2024		2023		2023
Consumer	$	10,345,772	$	10,379,724	$	10,313,730	$	10,092,727	$	9,963,690
Commercial		8,207,310		8,188,685		8,334,540		8,581,426		8,288,891
Public and Other		1,931,309		1,789,984		1,895,370		2,029,917		2,239,501
Total Deposits	$	20,484,391	$	20,358,393	$	20,543,640	$	20,704,070	$	20,492,082


Bank of Hawai‘i 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)		2024			2024			2024			2023			2023
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial	$	6,218		$	3,681		$	13		$	39		$	43
Commercial Mortgage		2,680			2,601			2,714			2,884			2,996
Total Commercial		8,898			6,282			2,727			2,923			3,039
Consumer
Residential Mortgage		4,269			2,998			3,199			2,935			3,706
Home Equity		3,947			3,227			3,240			3,791			3,734
Total Consumer		8,216			6,225			6,439			6,726			7,440
Total Non-Accrual Loans and Leases		17,114			12,507			9,166			9,649			10,479
Foreclosed Real Estate		2,667			2,672			2,672			2,098			1,040
Total Non-Performing Assets	$	19,781		$	15,179		$	11,838		$	11,747		$	11,519

Accruing Loans and Leases Past Due 90 Days or More
Consumer
Residential Mortgage	$	4,421		$	4,524		$	3,378		$	3,814		$	3,519
Home Equity		1,980			2,025			1,580			1,734			2,172
Automobile		580			568			517			399			393
Other¹		554			733			872			648			643
Total Consumer		7,535			7,850			6,347			6,595			6,727
Total Accruing Loans and Leases Past Due 90 Days or More	$	7,535		$	7,850		$	6,347		$	6,595		$	6,727
Total Loans and Leases	$	13,918,583		$	13,831,266		$	13,853,837		$	13,965,026		$	13,919,491

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases		0.12	%		0.09	%		0.07	%		0.07	%		0.08	%

Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate		0.14	%		0.11	%		0.09	%		0.08	%		0.08	%

Ratio of Non-Performing Assets to Total Assets		0.08	%		0.07	%		0.05	%		0.05	%		0.05	%

Ratio of Commercial Non-Performing Assets to Total Commercial Loans
and Leases and Commercial Foreclosed Real Estate		0.15	%		0.11	%		0.05	%		0.05	%		0.05	%

Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate		0.14	%		0.11	%		0.11	%		0.11	%		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		0.20	%		0.17	%		0.13	%		0.13	%		0.13	%

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter	$	15,179		$	11,838		$	11,747		$	11,519		$	11,477
Additions		5,557			5,257			1,652			2,683			1,318
Reductions
Payments		(734	)		(844	)		(921	)		(2,018	)		(1,017	)
Return to Accrual Status		(81	)		(1,018	)		(617	)		(437	)		(259	)
Charge-offs / Write-downs		(140	)		(54	)		(23	)		-			-
Total Reductions		(955	)		(1,916	)		(1,561	)		(2,455	)		(1,276	)
Balance at End of Quarter	$	19,781		$	15,179		$	11,838		$	11,747		$	11,519

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


Bank of Hawai‘i 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)		2024			2024			2023			2024			2023
Balance at Beginning of Period	$	151,155		$	152,148		$	151,702		$	152,429		$	151,247

Loans and Leases Charged-Off
Commercial
Commercial and Industrial		(1,021	)		(875	)		(294	)		(2,256	)		(758	)
Consumer
Residential Mortgage		-			(48	)		-			(48	)		(6	)
Home Equity		(125	)		(202	)		(13	)		(362	)		(68	)
Automobile		(1,651	)		(1,095	)		(1,353	)		(3,794	)		(4,309	)
Other¹		(2,539	)		(2,610	)		(1,957	)		(7,461	)		(6,296	)
Total Loans and Leases Charged-Off		(5,336	)		(4,830	)		(3,617	)		(13,921	)		(11,437	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial		66			263			72			445			225
Consumer
Residential Mortgage		48			63			69			153			188
Home Equity		318			113			131			615			893
Automobile		552			481			721			1,559			2,170
Other¹		522			517			575			1,645			1,867
Total Recoveries on Loans and Leases Previously Charged-Off		1,506			1,437			1,568			4,417			5,343
Net Charged-Off - Loans and Leases		(3,830	)		(3,393	)		(2,049	)		(9,504	)		(6,094	)
Provision for Credit Losses:
Loans and Leases		3,684			3,206			1,945			10,432			6,918
Unfunded Commitments		(684	)		(806	)		55			(3,032	)		(418	)
Total Provision for Credit Losses		3,000			2,400			2,000			7,400			6,500
Balance at End of Period	$	150,325		$	151,155		$	151,653		$	150,325		$	151,653

Components
Allowance for Credit Losses - Loans and Leases	$	147,331		$	147,477		$	145,263		$	147,331		$	145,263
Reserve for Unfunded Commitments		2,994			3,678			6,390			2,994			6,390
Total Reserve for Credit Losses	$	150,325		$	151,155		$	151,653		$	150,325		$	151,653

Average Loans and Leases Outstanding	$	13,809,977		$	13,831,797		$	13,903,214		$	13,836,760		$	13,833,164

Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)		0.11	%		0.10	%		0.06	%		0.09	%		0.06	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding²		1.06	%		1.07	%		1.04	%		1.06	%		1.04	%

¹Comprised of other revolving credit, installment, and lease financing.
²The 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 September 30, 2024
Net Interest Income (Expense)	$	97,919		$	50,556		$	(30,857	)	$	117,618
Provision for Credit Losses		3,058			772			(830	)		3,000
Net Interest Income (Expense) After Provision for Credit Losses		94,861			49,784			(30,027	)		114,618
Noninterest Income		34,133			7,786			3,191			45,110
Noninterest Expense		(84,712	)		(18,825	)		(3,555	)		(107,092	)
Income (Loss) Before Income Taxes		44,282			38,745			(30,391	)		52,636
Provision for Income Taxes		(11,289	)		(9,816	)		8,827			(12,278	)
Net Income (Loss)	$	32,993		$	28,929		$	(21,564	)	$	40,358
Total Assets as of September 30, 2024	$	8,308,389		$	5,952,321		$	9,538,464		$	23,799,174

Three Months Ended September 30, 2023¹
Net Interest Income (Expense)	$	98,984		$	52,066		$	(30,113	)	$	120,937
Provision for Credit Losses		1,974			74			(48	)		2,000
Net Interest Income (Expense) After Provision for Credit Losses		97,010			51,992			(30,065	)		118,937
Noninterest Income		31,027			8,483			10,824			50,334
Noninterest Expense		(81,377	)		(18,937	)		(5,287	)		(105,601	)
Income (Loss) Before Income Taxes		46,660			41,538			(24,528	)		63,670
Provision for Income Taxes		(12,073	)		(10,523	)		6,829			(15,767	)
Net Income (Loss)	$	34,587		$	31,015		$	(17,699	)	$	47,903
Total Assets as of September 30, 2023	$	8,584,796		$	5,719,577		$	9,245,412		$	23,549,785

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
Nine Months Ended September 30, 2024
Net Interest Income (Expense)	$	293,118		$	152,934		$	(99,650	)	$	346,402
Provision for Credit Losses		8,218			1,239			(2,057	)		7,400
Net Interest Income (Expense) After Provision for Credit Losses		284,900			151,695			(97,593	)		339,002
Noninterest Income		99,768			21,278			8,436			129,482
Noninterest Expense		(254,428	)		(55,478	)		(12,271	)		(322,177	)
Income (Loss) Before Income Taxes		130,240			117,495			(101,428	)		146,307
Provision for Income Taxes		(33,154	)		(29,711	)		27,390			(35,475	)
Net Income (Loss)	$	97,086		$	87,784		$	(74,038	)	$	110,832
Total Assets as of September 30, 2024	$	8,308,389		$	5,952,321		$	9,538,464		$	23,799,174

Nine Months Ended September 30, 2023¹
Net Interest Income (Expense)	$	293,681		$	159,864		$	(72,305	)	$	381,240
Provision for Credit Losses		6,035			59			406			6,500
Net Interest Income (Expense) After Provision for Credit Losses		287,646			159,805			(72,711	)		374,740
Noninterest Income		94,126			25,072			15,128			134,326
Noninterest Expense		(247,543	)		(58,528	)		(15,485	)		(321,556	)
Income (Loss) Before Income Taxes		134,229			126,349			(73,068	)		187,510
Provision for Income Taxes		(34,566	)		(31,345	)		19,207			(46,704	)
Net Income (Loss)	$	99,663		$	95,004		$	(53,861	)	$	140,806
Total Assets as of September 30, 2023	$	8,584,796		$	5,719,577		$	9,245,412		$	23,549,785

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
	September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands, except per share amounts)		2024			2024			2024			2023			2023
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	166,286		$	163,208		$	159,336		$	158,324		$	151,245
Income on Investment Securities
Available-for-Sale		23,257			21,468			21,757			22,782			23,552
Held-to-Maturity		21,107			21,595			22,136			22,589			22,838
Deposits		29			25			30			23			18
Funds Sold		8,951			6,114			6,127			5,705			12,828
Other		1,018			1,120			970			924			1,464
Total Interest Income		220,648			213,530			210,356			210,347			211,945
Interest Expense
Deposits		96,067			91,542			89,056			87,121			72,153
Securities Sold Under Agreements to Repurchase		993			1,180			1,443			1,459			4,034
Funds Purchased		-			44			-			-			-
Other Debt		5,970			5,918			5,919			5,982			14,821
Total Interest Expense		103,030			98,684			96,418			94,562			91,008
Net Interest Income		117,618			114,846			113,938			115,785			120,937
Provision for Credit Losses		3,000			2,400			2,000			2,500			2,000
Net Interest Income After Provision for Credit Losses		114,618			112,446			111,938			113,285			118,937
Noninterest Income
Fees, Exchange, and Other Service Charges		14,945			13,769			14,123			13,774			13,824
Trust and Asset Management		11,916			12,223			11,189			11,144			10,548
Service Charges on Deposit Accounts		8,075			7,730			7,947			7,949			7,843
Bank-Owned Life Insurance		3,533			3,396			3,356			3,176			2,749
Annuity and Insurance		1,460			1,583			1,046			1,271			1,156
Mortgage Banking		1,188			1,028			951			1,016			1,059
Investment Securities Losses, Net		(1,103	)		(1,601	)		(1,497	)		(1,619	)		(6,734	)
Other		5,096			3,959			5,170			5,572			19,889
Total Noninterest Income		45,110			42,087			42,285			42,283			50,334
Noninterest Expense
Salaries and Benefits		58,626			57,033			58,215			53,991			58,825
Net Occupancy		10,806			10,559			10,456			9,734			10,327
Net Equipment		10,120			10,355			10,103			9,826			9,477
Professional Fees		4,725			4,929			4,677			5,079			3,846
Data Processing		4,712			4,745			4,770			4,948			4,706
FDIC Insurance		3,355			7,170			3,614			18,545			3,361
Other		14,748			14,435			14,024			13,839			15,059
Total Noninterest Expense		107,092			109,226			105,859			115,962			105,601
Income Before Provision for Income Taxes		52,636			45,307			48,364			39,606			63,670
Provision for Income Taxes		12,278			11,224			11,973			9,210			15,767
Net Income	$	40,358		$	34,083		$	36,391		$	30,396		$	47,903
Preferred Stock Dividends		3,436			1,969			1,969			1,969			1,969
Net Income Available to Common Shareholders	$	36,922		$	32,114		$	34,422		$	28,427		$	45,934

Basic Earnings Per Common Share	$	0.94		$	0.81		$	0.87		$	0.72		$	1.17
Diluted Earnings Per Common Share	$	0.93		$	0.81		$	0.87		$	0.72		$	1.17

Balance Sheet Totals
Loans and Leases	$	13,918,583		$	13,831,266		$	13,853,837		$	13,965,026		$	13,919,491
Total Assets		23,799,174			23,300,768			23,420,860			23,733,296			23,549,785
Total Deposits		20,978,322			20,408,502			20,676,586			21,055,045			20,802,309
Total Shareholders' Equity		1,665,474			1,612,849			1,435,977			1,414,242			1,363,840

Performance Ratios
Return on Average Assets		0.69	%		0.59	%		0.63	%		0.51	%		0.78	%
Return on Average Shareholders' Equity		9.90			9.53			10.34			8.86			13.92
Return on Average Common Equity		11.50			10.41			11.20			9.55			15.38
Efficiency Ratio¹		65.81			69.60			67.76			73.36			61.66
Net Interest Margin²		2.18			2.15			2.11			2.13			2.13

¹Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
²Net 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
	Eight Months Ended				Year Ended
(dollars in millions; jobs in thousands)	August 31, 2024				December 31, 2023					December 31, 2022
Hawaii Economic Trends
State General Fund Revenues¹	$	6,568.2	1.5	%	$	9,504.1		0.7	%	$	9,441.3		16.0	%
General Excise and Use Tax Revenue¹		3,094.1	2.2			4,474.1		4.9			4,263.4		18.3
Jobs²		651.1				655.2					653.3

								September 30,		December 31,
								2024		2023			2022
Unemployment, seasonally adjusted²
Statewide								2.9	%		3.0	%	3.2	%
Honolulu County								2.8			2.6		3.1
Hawaii County								3.2			2.8		3.5
Maui County								2.5			6.2		3.5
Kauai County								3.5			2.5		3.1

					September 30,			December 31,
(1-year percentage change, except months of inventory)						2024		2023			2022		2021
Housing Trends (Single Family Oahu)³
Median Home Price						4.8	%	(5.0	)%		11.6	%	19.3	%
Home Sales Volume (units)						5.8	%	(26.3	)%		(23.2	)%	17.9	%
Months of Inventory						3.4		2.8			2.1		0.8

					Monthly Visitor Arrivals,					Percentage Change
(in thousands, except percent change)					Not Seasonally Adjusted					from Previous Year
Tourism⁴
August 31, 2024								819.2					6.9	%
July 31, 2024								925.3					(0.5	)
June 30, 2024								872.6					(1.5	)
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

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