Bank of Hawai‘i Corporation Fourth Quarter 2023 Financial Results

By: Bank of Hawai‘i Corporation via Business Wire

January 22, 2024 at 06:45 AM EST

2023 Diluted Earnings Per Common Share $4.14
2023 Net Income $171.2 Million
Diluted Earnings Per Common Share $0.72 for the Fourth Quarter of 2023
Net Income $30.4 Million for the Fourth Quarter of 2023
Board of Directors Declares Dividend of $0.70 Per Common Share
Industry-wide FDIC Special Assessment Resulted in a $14.7 Million Charge in the Fourth Quarter of 2023

Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $4.14 for the full year of 2023 compared with diluted earnings per common share of $5.48 for the full year of 2022. An industry-wide FDIC Special Assessment resulted in a $14.7 million charge in the fourth quarter of 2023 which negatively impacted diluted earnings per common share by $0.29. Net income for the year was $171.2 million, down 24.2% from the previous year. The return on average common equity for the full year of 2023 was 13.89% compared with 17.83% in 2022.

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“Bank of Hawai‘i managed through a challenging economic environment in 2023 and delivered strong financial results,” said Peter Ho, Chairman, President, and CEO. “Over the past year, we have demonstrated the resilience of our brand, deposit base and distinct business model. Total deposits were up 2.1% from the prior year and our credit quality remained excellent with non-performing assets of 0.08% at quarter end and net charge offs of 0.05% in the quarter. Our noninterest income held steady and we continued to demonstrate disciplined expense management. We focused on strengthening our balance sheet during the year and we are well positioned to deliver strong results in 2024.”

Diluted earnings per common share for the fourth quarter of 2023 was $0.72, compared with diluted earnings per common share of $1.17 in the previous quarter and $1.50 in the same quarter of 2022. Net income for the fourth quarter of 2023 was $30.4 million, down 36.5% from the previous quarter and down 50.4% from the same quarter of 2022. The return on average common equity for the fourth quarter of 2023 was 9.55% compared with 15.38% in the previous quarter and 21.28% in the same quarter of 2022.

Financial Highlights

Net interest income for the fourth quarter of 2023 was $115.8 million, a decrease of 4.3% from the previous quarter and a decrease of 17.7% from the same quarter of 2022. The decrease in net interest income in the fourth quarter of 2023 was primarily due to higher funding costs, partially offset by higher earning asset yields.

Net interest margin was 2.13% in the fourth quarter of 2023, unchanged from the previous quarter and a decrease of 47 basis points from the same quarter of 2022. Net interest margin in the fourth quarter of 2023 was negatively impacted by higher funding costs, partially offset by higher earning asset yields.

The average yield on loans and leases was 4.54% in the fourth quarter of 2023, up 20 basis points from the prior quarter and up 73 basis points from the same quarter of 2022. The average yield on total earning assets was 3.85% in the fourth quarter of 2023, up 13 basis points from the prior quarter and up 68 basis points from the same quarter of 2022. The average cost of interest-bearing deposits was 2.30% in the fourth quarter of 2023, up 35 basis points from the prior quarter and up 161 basis points from the same quarter of 2022. The average cost of total deposits, including noninterest-bearing deposits, was 1.67%, up 27 basis points from the prior quarter and up 121 basis points from the same quarter of 2022. The changes in yields and rates over the linked quarter and year over year period reflected the higher rate environment, including higher benchmark interest rates.

Noninterest income was $42.3 million in the fourth quarter of 2023, a decrease of 16.0% from the previous quarter and an increase of 2.7% from the same period in 2022. 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 in the prior quarter, noninterest income increased by 3.0% quarter over quarter.

Noninterest expense was $116.0 million in the fourth quarter of 2023, an increase of 9.8% from the previous quarter and an increase of 12.9% from the same quarter of 2022. Noninterest expense in the fourth quarter of 2023 included an industry-wide FDIC Special Assessment of $14.7 million and $1.7 million of expense savings 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 core noninterest expense in the fourth quarter of 2023 was $102.9 million, down slightly from adjusted noninterest expense in the previous quarter and up 0.2% from the noninterest expense in the same period in 2022.

The effective tax rate for the fourth quarter of 2023 was 23.25% compared with 24.76% in the previous quarter and 22.40% during the same quarter of 2022. The decrease in the effective tax rate on a linked quarter basis was mainly due to discrete tax items recognized in the fourth quarter. The year over year increase was primarily due to tax benefits in the fourth quarter of 2022 related to our agreement to sell assets that terminated certain leveraged leases.

Asset Quality

The Company’s overall asset quality remained strong during the fourth quarter of 2023. Provision for credit losses for the fourth quarter of 2023 was $2.5 million compared with $2.0 million in the previous quarter and $0.2 million in the same quarter of 2022.

Total non-performing assets were $11.7 million at December 31, 2023, up $0.2 million from September 30, 2023 and down $0.9 million from December 31, 2022. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.08% at the end of the quarter, unchanged from the end of the prior quarter and a decrease of 1 basis point from the same quarter of 2022.

Net loan and lease charge-offs during the fourth quarter of 2023 were $1.7 million or 5 basis points annualized of total average loans and leases outstanding. Net loan and lease charge-offs for the fourth quarter of 2023 were comprised of charge-offs of $3.5 million partially offset by recoveries of $1.8 million. Compared to the prior quarter, net loan and lease charge-offs decreased by $0.3 million or 1 basis point annualized on total average loans and leases outstanding. Compared to the same quarter of 2022, net loan and lease charge-offs decreased by $0.1 million.

The allowance for credit losses on loans and leases was $146.4 million at December 31, 2023, an increase of $1.1 million from September 30, 2023 and an increase of $2.0 million from December 31, 2022. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.05% at the end of the quarter, up 1 basis point from the end of the prior quarter and down 1 basis point from the same quarter of 2022.

Balance Sheet

Total assets were $23.7 billion at December 31, 2023, an increase of 0.8% from September 30, 2023 and an increase of 0.5% from December 31, 2022. The increase from the prior quarter was primarily due to an increase in funds sold. The increase from the same period in 2022 was primarily due to increases in funds sold and loans and leases partially offset by a decrease in investment securities.

The investment securities portfolio was $7.4 billion at December 31, 2023, a decrease of 0.9% from September 30, 2023 and a decrease of 10.3% from December 31, 2022. The decrease from the prior quarter was mainly due to cashflows from the portfolio not being reinvested into securities. The decrease from the same period in 2022 was primarily due to $159.1 million of investment securities sold in the third quarter of 2023 and 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 $14.0 billion at December 31, 2023, an increase of 0.3% from September 30, 2023 and an increase of 2.3% from December 31, 2022. Total commercial loans were $5.8 billion at December 31, 2023, an increase of 1.7% from the prior quarter and an increase of 5.7% from the same quarter of 2022, primarily due to an increase in our commercial and industrial portfolio. Total consumer loans were $8.2 billion as of December 31, 2023, a decrease of 0.6% from the prior quarter and an increase of 0.1% from the same period in 2022.

Total deposits were $21.1 billion at December 31, 2023, an increase of 1.2% from September 30, 2023 and an increase of 2.1% from December 31, 2022. Noninterest-bearing deposits made up 29% of total deposit balances as of December 31, 2023, up from 27% as of September 30, 2023, and down from 33% as of December 31, 2022. Average total deposits were $20.7 billion for the fourth quarter of 2023, up 1.0% from $20.5 billion in the prior quarter, and up 1.8% from $20.3 billion in the fourth quarter of 2022. As of December 31, 2023, insured and uninsured but collateralized deposits represent 58% of total deposit balances, relatively flat from 58% as of September 30, 2023, and up from 57% as of December 31, 2022. As of December 31, 2023, our readily available liquidity of $10.2 billion exceeded total uninsured and uncollateralized deposits of $8.9 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 12.56% at December 31, 2023 compared with 12.53% at September 30, 2023 and 12.15% at December 31, 2022. The Tier 1 Leverage Ratio was 7.51% at December 31, 2023, up 29 basis points from 7.22% at September 30, 2023 and up 14 basis points from 7.37% at December 31, 2022. The increases from the prior quarter were due to an increase in Tier 1 capital as a result of retained earnings growth and a decrease in average total assets. The increases from the same period in 2022 were mainly due to an increase in Tier 1 capital as a result of retained earnings growth.

No shares of common stock were repurchased under the share repurchase program in the fourth quarter of 2023. Total remaining buyback authority under the share repurchase program was $126.0 million at December 31, 2023.

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 March 14, 2024 to shareholders of record at the close of business on February 29, 2024.

On January 5, 2024, the Company announced that the Board of Directors declared the quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, on its preferred stock. The depositary shares representing the Series A Preferred Stock are traded on the NYSE under the symbol “BOH.PRA.” The dividend will be payable on February 1, 2024 to shareholders of record of the preferred stock as of the close of business on January 16, 2024.

Conference Call Information

The Company will review its fourth quarter financial results today at 8:00 a.m. Hawai‘i Time (1:00 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/BIa96006b6de704a3690a1e0eeb5330a09. A replay of the webcast will be available for one year beginning approximately 11:00 a.m. Hawai‘i Time on Monday, January 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, 2022 and its Form 10-Q for the fiscal quarter ended March 31, 2023, June 30, 2023 and September 30, 2023, 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									Year Ended
	December 31,			September 30,			December 31,			December 31,
(dollars in thousands, except per share amounts)	2023			2023			2022			2023			2022
For the Period:
Operating Results
Net Interest Income	$	115,785		$	120,937		$	140,738		$	497,025		$	540,558
Provision for Credit Losses		2,500			2,000			200			9,000			(7,800	)
Total Noninterest Income		42,283			50,334			41,172			176,609			157,541
Total Noninterest Expense		115,962			105,601			102,703			437,518			415,265
Pre-Provision Net Revenue		42,106			65,670			79,207			236,116			282,834
Net Income		30,396			47,903			61,307			171,202			225,804
Net Income Available to Common Shareholders ¹		28,427			45,934			59,338			163,326			217,928
Basic Earnings Per Common Share		0.72			1.17			1.51			4.16			5.50
Diluted Earnings Per Common Share		0.72			1.17			1.50			4.14			5.48
Dividends Declared Per Common Share		0.70			0.70			0.70			2.80			2.80

Performance Ratios
Return on Average Assets		0.51	%		0.78	%		1.05	%		0.71	%		0.98	%
Return on Average Shareholders' Equity		8.86			13.92			18.91			12.63			16.10
Return on Average Common Equity		9.55			15.38			21.28			13.89			17.83
Efficiency Ratio ²		73.36			61.66			56.46			64.95			59.49
Net Interest Margin ³		2.13			2.13			2.60			2.24			2.50
Dividend Payout Ratio ⁴		97.22			59.83			46.36			67.31			50.91
Average Shareholders' Equity to Average Assets		5.80			5.60			5.56			5.66			6.10

Average Balances
Average Loans and Leases	$	13,906,114		$	13,903,214		$	13,452,791		$	13,851,551		$	12,896,510
Average Assets		23,449,215			24,387,421			23,147,398			23,954,186			23,006,671
Average Deposits		20,704,070			20,492,082			20,341,327			20,412,378			20,550,739
Average Shareholders' Equity		1,360,641			1,365,143			1,286,291			1,355,536			1,402,533

Per Share of Common Stock
Book Value	$	31.05		$	29.78		$	28.54		$	31.05		$	28.54
Tangible Book Value		30.25			28.99			27.75			30.25			27.75
Market Value
Closing		72.46			49.69			77.56			72.46			77.56
High		75.19			58.63			82.87			81.73			92.38
Low		45.56			39.02			70.15			30.83			70.15

							December 31,			September 30,			December 31,
							2023			2023			2022
As of Period End:
Balance Sheet Totals
Loans and Leases							$	13,965,026		$	13,919,491		$	13,646,420
Total Assets								23,733,296			23,549,785			23,606,877
Total Deposits								21,055,045			20,802,309			20,615,696
Other Debt								560,190			560,217			410,294
Total Shareholders' Equity								1,414,242			1,363,840			1,316,995

Asset Quality
Non-Performing Assets							$	11,747		$	11,519		$	12,647
Allowance for Credit Losses - Loans and Leases								146,403			145,263			144,439
Allowance to Loans and Leases Outstanding ⁵								1.05	%		1.04	%		1.06	%

Capital Ratios ⁶
Common Equity Tier 1 Capital Ratio								11.33	%		11.29	%		10.92	%
Tier 1 Capital Ratio								12.56			12.53			12.15
Total Capital Ratio								13.60			13.56			13.17
Tier 1 Leverage Ratio								7.51			7.22			7.37
Total Shareholders' Equity to Total Assets								5.96			5.79			5.58
Tangible Common Equity to Tangible Assets ⁷								5.07			4.90			4.69
Tangible Common Equity to Risk-Weighted Assets ⁷								8.45			8.10			7.76

Non-Financial Data
Full-Time Equivalent Employees								1,899			1,919			2,076
Branches								51			51			51
ATMs								318			320			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 December 31, 2023 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
	December 31,			September 30,			December 31,
(dollars in thousands)		2023			2023			2022

Total Shareholders' Equity	$	1,414,242		$	1,363,840		$	1,316,995
Less: Preferred Stock		180,000			180,000			180,000
Goodwill		31,517			31,517			31,517
Tangible Common Equity	$	1,202,725		$	1,152,323		$	1,105,478

Total Assets	$	23,733,296		$	23,549,785		$	23,606,877
Less: Goodwill		31,517			31,517			31,517
Tangible Assets	$	23,701,779		$	23,518,268		$	23,575,360

Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements ¹	$	14,226,780		$	14,222,825		$	14,238,798

Total Shareholders' Equity to Total Assets		5.96	%		5.79	%		5.58	%
Tangible Common Equity to Tangible Assets (Non-GAAP)		5.07	%		4.90	%		4.69	%

Tier 1 Capital Ratio ¹		12.56	%		12.53	%		12.15	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) ¹		8.45	%		8.10	%		7.76	%

¹ Regulatory capital ratios as of December 31, 2023 are preliminary.

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Income													Table 3
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
(dollars in thousands, except per share amounts)		2023			2023			2022			2023			2022
Interest Income
Interest and Fees on Loans and Leases	$	158,324		$	151,245		$	128,683		$	590,611		$	439,798
Income on Investment Securities
Available-for-Sale		22,782			23,552			18,476			93,528			70,555
Held-to-Maturity		22,589			22,838			23,708			92,750			81,490
Deposits		23			18			13			86			32
Funds Sold		5,705			12,828			1,093			28,294			4,274
Other		924			1,464			340			5,106			1,217
Total Interest Income		210,347			211,945			172,313			810,375			597,366
Interest Expense
Deposits		87,121			72,153			23,494			250,847			39,678
Securities Sold Under Agreements to Repurchase		1,459			4,034			4,289			16,306			12,600
Funds Purchased		-			-			318			888			417
Short-Term Borrowings		-			-			1,978			5,713			2,070
Other Debt		5,982			14,821			1,496			39,596			2,043
Total Interest Expense		94,562			91,008			31,575			313,350			56,808
Net Interest Income		115,785			120,937			140,738			497,025			540,558
Provision for Credit Losses		2,500			2,000			200			9,000			(7,800	)
Net Interest Income After Provision for Credit Losses		113,285			118,937			140,538			488,025			548,358
Noninterest Income
Trust and Asset Management		11,144			10,548			10,652			43,597			43,803
Mortgage Banking		1,016			1,059			991			4,255			5,980
Service Charges on Deposit Accounts		7,949			7,843			7,513			31,116			29,620
Fees, Exchange, and Other Service Charges		13,774			13,824			13,906			55,556			54,914
Investment Securities Losses, Net		(1,619	)		(6,734	)		(1,124	)		(11,455	)		(6,111	)
Annuity and Insurance		1,271			1,156			1,087			4,736			3,782
Bank-Owned Life Insurance		3,176			2,749			2,475			11,643			9,968
Other		5,572			19,889			5,672			37,161			15,585
Total Noninterest Income		42,283			50,334			41,172			176,609			157,541
Noninterest Expense
Salaries and Benefits		53,991			58,825			57,639			234,079			235,270
Net Occupancy		9,734			10,327			9,499			39,924			39,441
Net Equipment		9,826			9,477			9,942			40,251			38,374
Data Processing		4,948			4,706			4,579			18,836			18,362
Professional Fees		5,079			3,846			3,958			17,459			14,557
FDIC Insurance		18,545			3,361			1,774			28,313			6,546
Other		13,839			15,059			15,312			58,656			62,715
Total Noninterest Expense		115,962			105,601			102,703			437,518			415,265
Income Before Provision for Income Taxes		39,606			63,670			79,007			227,116			290,634
Provision for Income Taxes		9,210			15,767			17,700			55,914			64,830
Net Income	$	30,396		$	47,903		$	61,307		$	171,202		$	225,804
Preferred Stock Dividends		1,969			1,969			1,969			7,877			7,877
Net Income Available to Common Shareholders	$	28,427		$	45,934		$	59,338		$	163,325		$	217,927
Basic Earnings Per Common Share	$	0.72		$	1.17		$	1.51		$	4.16		$	5.50
Diluted Earnings Per Common Share	$	0.72		$	1.17		$	1.50		$	4.14		$	5.48
Dividends Declared Per Common Share	$	0.70		$	0.70		$	0.70		$	2.80		$	2.80
Basic Weighted Average Common Shares		39,303,525			39,274,626			39,395,338			39,274,291			39,601,089
Diluted Weighted Average Common Shares		39,539,191			39,420,531			39,618,896			39,428,912			39,788,002

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)										Table 4
	Three Months Ended							Year Ended
	December 31,		September 30,			December 31,		December 31,
(dollars in thousands)		2023		2023			2022		2023		2022
Net Income	$	30,396	$	47,903		$	61,307	$	171,202	$	225,804
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities		43,357		(18,264	)		5,677		36,152		(376,694	)
Defined Benefit Plans		1,566		84			7,359		1,818		8,418
Other Comprehensive Income (Loss)		44,923		(18,180	)		13,036		37,970		(368,276	)
Comprehensive Income (Loss)	$	75,319	$	29,723		$	74,343	$	209,172	$	(142,472	)

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Condition							Table 5
	December 31,			September 30,			December 31,
(dollars in thousands)		2023			2023			2022
Assets
Interest-Bearing Deposits in Other Banks	$	2,761		$	4,676		$	3,724
Funds Sold		690,112			386,086			81,364
Investment Securities
Available-for-Sale		2,408,933			2,387,324			2,844,823
Held-to-Maturity (Fair Value of $4,253,637; $4,104,469; and $4,615,393)		4,997,335			5,088,013			5,414,139
Loans Held for Sale		3,124			1,450			1,035
Loans and Leases		13,965,026			13,919,491			13,646,420
Allowance for Credit Losses		(146,403	)		(145,263	)		(144,439	)
Net Loans and Leases		13,818,623			13,774,228			13,501,981
Total Earning Assets		21,920,888			21,641,777			21,847,066
Cash and Due from Banks		308,071			261,464			316,679
Premises and Equipment, Net		194,855			196,094			206,777
Operating Lease Right-of-Use Assets		86,110			86,896			92,307
Accrued Interest Receivable		66,525			65,541			61,002
Foreclosed Real Estate		2,098			1,040			1,040
Mortgage Servicing Rights		20,880			21,273			22,619
Goodwill		31,517			31,517			31,517
Bank-Owned Life Insurance		462,894			458,260			453,882
Other Assets		639,458			785,923			573,988
Total Assets	$	23,733,296		$	23,549,785		$	23,606,877

Liabilities
Deposits
Noninterest-Bearing Demand	$	6,058,554		$	5,687,442		$	6,714,982
Interest-Bearing Demand		3,749,717			3,925,469			4,232,567
Savings		8,189,472			8,530,384			7,962,410
Time		3,057,302			2,659,014			1,705,737
Total Deposits		21,055,045			20,802,309			20,615,696
Securities Sold Under Agreements to Repurchase		150,490			150,490			725,490
Other Debt		560,190			560,217			410,294
Operating Lease Liabilities		94,693			95,453			100,526
Retirement Benefits Payable		23,673			26,074			26,991
Accrued Interest Payable		41,023			33,434			9,698
Taxes Payable		7,636			6,965			7,104
Other Liabilities		386,304			511,003			394,083
Total Liabilities		22,319,054			22,185,945			22,289,882
Shareholders' Equity
Preferred Stock ($.01 par value; authorized 180,000 shares;
issued / outstanding: December 31, 2023; September 30, 2023;
and December 31, 2022 - 180,000)		180,000			180,000			180,000
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2023 - 58,755,465 / 39,753,138;
September 30, 2023 - 58,767,820 / 39,748,700; and December 31, 2022 - 58,733,625 / 39,835,750)		583			583			582
Capital Surplus		636,422			632,425			620,578
Accumulated Other Comprehensive Loss		(396,688	)		(441,611	)		(434,658	)
Retained Earnings		2,107,569			2,108,702			2,055,912
Treasury Stock, at Cost (Shares: December 31, 2023 - 19,002,327; September 30, 2023 - 19,019,120;
and December 31, 2022 - 18,897,875)		(1,113,644	)		(1,116,259	)		(1,105,419	)
Total Shareholders' Equity		1,414,242			1,363,840			1,316,995
Total Liabilities and Shareholders' Equity	$	23,733,296		$	23,549,785		$	23,606,877

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																			Table 6
										Accumulated
										Other
	Preferred			Common						Comprehensive
	Shares	Preferred		Shares		Common		Capital		Income			Retained			Treasury
(dollars in thousands)	Outstanding	Stock		Outstanding		Stock		Surplus		(Loss)			Earnings			Stock			Total
Balance as of December 31, 2021	180,000	$	180,000	40,253,193		$	581	$	602,508	$	(66,382	)	$	1,950,375		$	(1,055,471	)	$	1,611,611
Net Income	-		-	-			-		-		-			225,804			-			225,804
Other Comprehensive Loss	-		-	-			-		-		(368,276	)		-			-			(368,276	)
Share-Based Compensation	-		-	-			-		16,066		-			-			-			16,066
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits	-		-	272,007			1		2,004		-			167			5,115			7,287
Common Stock Repurchased	-		-	(689,450	)		-		-		-			-			(55,063	)		(55,063	)
Cash Dividends Declared Common Stock ($2.80 per share)	-		-	-			-		-		-			(112,557	)		-			(112,557	)
Cash Dividends Declared Preferred Stock	-		-	-			-		-		-			(7,877	)		-			(7,877	)
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	-	$	-	-		$	-	$	-	$	-		$	171,202		$	-		$	171,202
Other Comprehensive Income	-		-	-			-		-		37,970			-			-			37,970
Share-Based Compensation	-		-	-			-		15,656		-			-			-			15,656
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits	-		-	130,286			1		188		-			127			6,065			6,381
Common Stock Repurchased	-		-	(212,898	)		-		-		-			-			(14,290	)		(14,290	)
Cash Dividends Declared Common Stock ($2.80 per share)	-		-	-			-		-		-			(111,795	)		-			(111,795	)
Cash Dividends Declared Preferred Stock	-		-	-			-		-		-			(7,877	)		-			(7,877	)
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

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
	December 31, 2023						September 30, 2023						December 31, 2022
	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	$	-	2.08	%	$	2.9	$	-	2.40	%	$	2.2	$	-	2.32	%
Funds Sold		415.0		5.7	5.38			944.8		12.8	5.31			118.1		1.2	3.62
Investment Securities
Available-for-Sale
Taxable		2,362.4		22.8	3.84			2,605.4		23.5	3.60			2,593.5		18.4	2.83
Non-Taxable		1.8		-	1.90			3.5		-	3.21			7.5		0.1	4.14
Held-to-Maturity
Taxable		5,013.6		22.4	1.79			5,118.6		22.7	1.77			5,401.9		23.5	1.74
Non-Taxable		34.9		0.2	2.10			35.0		0.2	2.10			35.4		0.2	2.10
Total Investment Securities		7,412.7		45.4	2.45			7,762.5		46.4	2.39			8,038.3		42.2	2.10
Loans Held for Sale		3.8		0.1	6.89			3.8		0.1	6.28			3.3		-	5.65
Loans and Leases ³
Commercial and Industrial		1,603.5		21.3	5.27			1,515.0		18.9	4.96			1,379.9		14.8	4.25
Paycheck Protection Program		11.9		-	1.36			13.1		-	1.32			21.3		0.1	2.30
Commercial Mortgage		3,760.1		51.5	5.42			3,792.6		51.1	5.35			3,627.4		40.6	4.44
Construction		279.5		4.8	6.84			241.9		3.7	6.09			246.9		3.3	5.29
Commercial Lease Financing		60.1		0.3	1.95			62.6		0.3	1.84			72.0		0.3	1.49
Residential Mortgage		4,676.0		45.1	3.86			4,715.3		42.8	3.62			4,617.9		38.9	3.37
Home Equity		2,276.2		20.9	3.65			2,283.5		20.1	3.49			2,207.7		17.9	3.23
Automobile		845.7		8.6	4.02			868.0		8.2	3.75			851.1		7.0	3.29
Other ⁴		393.1		6.3	6.40			411.2		6.5	6.24			428.6		6.1	5.64
Total Loans and Leases		13,906.1		158.8	4.54			13,903.2		151.6	4.34			13,452.8		129.0	3.81
Other		60.0		1.0	6.16			91.6		1.5	6.40			50.1		0.4	2.72
Total Earning Assets		21,801.9		211.0	3.85			22,708.8		212.4	3.72			21,664.8		172.8	3.17
Cash and Due from Banks		243.8						289.8						244.3
Other Assets		1,403.5						1,388.8						1,238.3
Total Assets	$	23,449.2					$	24,387.4					$	23,147.4

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	3,737.3		7.7	0.82		$	3,929.7		6.6	0.67		$	4,131.4		3.5	0.33
Savings		8,441.0		51.1	2.40			7,952.6		39.1	1.95			7,869.9		13.4	0.68
Time		2,830.0		28.3	3.97			2,767.8		26.5	3.79			1,467.7		6.6	1.78
Total Interest-Bearing Deposits		15,008.3		87.1	2.30			14,650.1		72.2	1.95			13,469.0		23.5	0.69
Funds Purchased		-		-	-			-		-	-			36.6		0.3	3.40
Short-Term Borrowings		-		-	-			-		-	-			198.3		2.0	3.90
Securities Sold Under Agreements to Repurchase		150.5		1.5	3.79			528.5		4.0	2.99			594.5		4.3	2.82
Other Debt		560.2		6.0	4.24			1,365.7		14.8	4.31			137.5		1.5	4.32
Total Interest-Bearing Liabilities		15,719.0		94.6	2.39			16,544.3		91.0	2.18			14,435.9		31.6	0.87
Net Interest Income			$	116.4					$	121.4					$	141.2
Interest Rate Spread					1.46	%					1.54	%					2.30	%
Net Interest Margin					2.13	%					2.13	%					2.60	%
Noninterest-Bearing Demand Deposits		5,695.8						5,842.0						6,872.3
Other Liabilities		673.8						636.0						552.9
Shareholders' Equity		1,360.6						1,365.1						1,286.3
Total Liabilities and Shareholders' Equity	$	23,449.2					$	24,387.4					$	23,147.4

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 $605,000, $437,000, and $433,000

for the three months ended December 31, 2023, September 30, 2023, and December 31, 2022, 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
	Year Ended						Year Ended
	December 31, 2023						December 31, 2022
	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	$	3.5	$	0.1	2.44	%	$	3.0	$	-	1.05	%
Funds Sold		540.4		28.3	5.24			260.5		4.3	1.64
Investment Securities
Available-for-Sale
Taxable		2,631.0		93.4	3.55			3,644.2		70.5	1.93
Non-Taxable		6.1		0.2	4.06			4.0		0.1	2.92
Held-to-Maturity
Taxable		5,173.9		92.2	1.78			4,750.0		80.9	1.70
Non-Taxable		35.1		0.7	2.10			35.6		0.7	2.10
Total Investment Securities		7,846.1		186.5	2.38			8,433.8		152.2	1.80
Loans Held for Sale		3.0		0.2	6.16			6.9		0.3	3.70
Loans and Leases ³
Commercial and Industrial		1,497.1		74.0	4.94			1,349.3		46.2	3.42
Paycheck Protection Program		14.1		0.2	1.63			44.0		2.7	6.07
Commercial Mortgage		3,776.2		197.0	5.22			3,420.1		121.9	3.56
Construction		262.1		16.0	6.09			232.6		10.6	4.56
Commercial Lease Financing		63.7		0.8	1.30			88.5		1.3	1.49
Residential Mortgage		4,690.5		168.9	3.60			4,484.2		147.4	3.29
Home Equity		2,268.0		78.2	3.45			2,072.2		62.1	3.00
Automobile		866.1		31.8	3.67			786.1		25.4	3.23
Other ⁴		413.8		25.3	6.12			419.5		23.0	5.49
Total Loans and Leases		13,851.6		592.2	4.28			12,896.5		440.6	3.42
Other		78.3		5.1	6.51			40.5		1.2	3.01
Total Earning Assets		22,322.9		812.4	3.64			21,641.2		598.6	2.77
Cash and Due from Banks		292.1						237.4
Other Assets		1,339.2						1,128.1
Total Assets	$	23,954.2					$	23,006.7

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	3,978.7		27.0	0.68		$	4,377.1		6.1	0.14
Savings		8,018.4		137.4	1.71			7,767.7		22.9	0.30
Time		2,424.8		86.4	3.56			1,135.5		10.7	0.94
Total Interest-Bearing Deposits		14,421.9		250.8	1.74			13,280.3		39.7	0.30
Funds Purchased		18.5		0.9	4.79			18.5		0.4	2.26
Short-Term Borrowings		114.0		5.7	5.01			58.6		2.1	3.53
Securities Sold Under Agreements to Repurchase		530.9		16.3	3.07			479.8		12.6	2.63
Other Debt		921.8		39.7	4.30			42.4		2.0	4.82
Total Interest-Bearing Liabilities		16,007.1		313.4	1.96			13,879.6		56.8	0.41
Net Interest Income			$	499.0					$	541.8
Interest Rate Spread					1.68	%					2.36	%
Net Interest Margin					2.24	%					2.50	%
Noninterest-Bearing Demand Deposits		5,990.5						7,270.4
Other Liabilities		601.1						454.2
Shareholders' Equity		1,355.5						1,402.5
Total Liabilities and Shareholders' Equity	$	23,954.2					$	23,006.7

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 $2,008,000 and $1,251,000

for the year ended December 31, 2023 and December 31, 2022, 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 December 31, 2023
	Compared to September 30, 2023
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(7.3	)	$	0.2		$	(7.1	)
Investment Securities
Available-for-Sale
Taxable		(2.2	)		1.5			(0.7	)
Held-to-Maturity
Taxable		(0.5	)		0.2			(0.3	)
Total Investment Securities		(2.7	)		1.7			(1.0	)
Loans and Leases
Commercial and Industrial		1.2			1.2			2.4
Commercial Mortgage		(0.4	)		0.8			0.4
Construction		0.6			0.5			1.1
Residential Mortgage		(0.4	)		2.7			2.3
Home Equity		(0.1	)		0.9			0.8
Automobile		(0.2	)		0.6			0.4
Other ²		(0.4	)		0.2			(0.2	)
Total Loans and Leases		0.3			6.9			7.2
Other		(0.4	)		(0.1	)		(0.5	)
Total Change in Interest Income		(10.1	)		8.7			(1.4	)

Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.3	)		1.4			1.1
Savings		2.5			9.5			12.0
Time		0.6			1.2			1.8
Total Interest-Bearing Deposits		2.8			12.1			14.9
Securities Sold Under Agreements to Repurchase		(3.5	)		1.0			(2.5	)
Other Debt		(8.6	)		(0.2	)		(8.8	)
Total Change in Interest Expense		(9.3	)		12.9			3.6

Change in Net Interest Income	$	(0.8	)	$	(4.2	)	$	(5.0	)

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 December 31, 2023
	Compared to December 31, 2022
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	3.8		$	0.7		$	4.5
Investment Securities
Available-for-Sale
Taxable		(1.8	)		6.2			4.4
Non-Taxable		-			(0.1	)		(0.1	)
Held-to-Maturity
Taxable		(1.7	)		0.6			(1.1	)
Total Investment Securities		(3.5	)		6.7			3.2
Loans Held for Sale		-			0.1			0.1
Loans and Leases
Commercial and Industrial		2.6			3.9			6.5
Paycheck Protection Program		-			(0.1	)		(0.1	)
Commercial Mortgage		1.6			9.3			10.9
Construction		0.4			1.1			1.5
Residential Mortgage		0.5			5.7			6.2
Home Equity		0.6			2.4			3.0
Automobile		-			1.6			1.6
Other ²		(0.6	)		0.8			0.2
Total Loans and Leases		5.1			24.7			29.8
Other		0.1			0.5			0.6
Total Change in Interest Income		5.5			32.7			38.2

Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.4	)		4.6			4.2
Savings		1.0			36.7			37.7
Time		9.4			12.3			21.7
Total Interest-Bearing Deposits		10.0			53.6			63.6
Funds Purchased		(0.3	)		-			(0.3	)
Short-Term Borrowings		(2.0	)		-			(2.0	)
Securities Sold Under Agreements to Repurchase		(3.9	)		1.1			(2.8	)
Other Debt		4.5			-			4.5
Total Change in Interest Expense		8.3			54.7			63.0

Change in Net Interest Income	$	(2.8	)	$	(22.0	)	$	(24.8	)

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

Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8c
	Year Ended December 31, 2023
	Compared to December 31, 2022
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	0.1		$	-		$	0.1
Funds Sold		7.9			16.1			24.0
Investment Securities
Available-for-Sale
Taxable		(23.7	)		46.6			22.9
Non-Taxable		0.1			-			0.1
Held-to-Maturity
Taxable		7.4			3.9			11.3
Total Investment Securities		(16.2	)		50.5			34.3
Loans Held for Sale		(0.2	)		0.1			(0.1	)
Loans and Leases
Commercial and Industrial		5.5			22.3			27.8
Paycheck Protection Program		(1.2	)		(1.3	)		(2.5	)
Commercial Mortgage		13.8			61.3			75.1
Construction		1.5			3.9			5.4
Commercial Lease Financing		(0.4	)		(0.1	)		(0.5	)
Residential Mortgage		7.0			14.5			21.5
Home Equity		6.2			9.9			16.1
Automobile		2.7			3.7			6.4
Other²		(0.3	)		2.6			2.3
Total Loans and Leases		34.8			116.8			151.6
Other		1.7			2.2			3.9
Total Change in Interest Income		28.1			185.7			213.8

Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.6	)		21.5			20.9
Savings		0.8			113.7			114.5
Time		21.8			53.9			75.7
Total Interest-Bearing Deposits		22.0			189.1			211.1
Funds Purchased		-			0.5			0.5
Short-Term Borrowings		2.5			1.1			3.6
Securities Sold Under Agreements to Repurchase		1.4			2.3			3.7
Other Debt		37.9			(0.2	)		37.7
Total Change in Interest Expense		63.8			192.8			256.6

Change in Net Interest Income	$	(35.7	)	$	(7.1	)	$	(42.8	)

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

Bank of Hawai‘i Corporation and Subsidiaries
Salaries and Benefits										Table 9
	Three Months Ended							Year Ended
	December 31,		September 30,		December 31,			December 31,
(dollars in thousands)	2023		2023		2022			2023		2022
Salaries	$	38,492	$	39,426	$	37,395		$	154,497	$	146,840
Incentive Compensation		3,402		2,956		5,356			13,339		23,425
Share-Based Compensation		3,443		4,072		3,901			14,770		15,220
Commission Expense		700		676		830			2,798		4,708
Retirement and Other Benefits		2,521		3,809		4,065			15,707		17,242
Payroll Taxes		2,598		2,921		2,591			14,677		13,395
Medical, Dental, and Life Insurance		2,500		2,835		3,528			12,767		11,958
Separation Expense		335		2,130		(27	)		5,524		2,482
Total Salaries and Benefits	$	53,991	$	58,825	$	57,639		$	234,079	$	235,270

Bank of Hawai‘i Corporation and Subsidiaries
Loan and Lease Portfolio Balances									Table 10
	December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)	2023		2023		2023		2023		2022
Commercial
Commercial and Industrial	$	1,652,699	$	1,569,572	$	1,502,676	$	1,425,916	$	1,389,066
Paycheck Protection Program		11,369		12,529		13,789		15,175		19,579
Commercial Mortgage		3,749,016		3,784,339		3,796,769		3,826,283		3,725,542
Construction		304,463		251,507		236,428		232,903		260,825
Lease Financing		59,939		61,522		62,779		65,611		69,491
Total Commercial		5,777,486		5,679,469		5,612,441		5,565,888		5,464,503
Consumer
Residential Mortgage		4,684,171		4,699,140		4,721,976		4,691,298		4,653,072
Home Equity		2,264,827		2,285,974		2,278,105		2,260,001		2,225,950
Automobile		837,830		856,113		878,767		877,979		870,396
Other ¹		400,712		398,795		423,600		429,356		432,499
Total Consumer		8,187,540		8,240,022		8,302,448		8,258,634		8,181,917
Total Loans and Leases	$	13,965,026	$	13,919,491	$	13,914,889	$	13,824,522	$	13,646,420
¹ Comprised of other revolving credit, installment, and lease financing.

Deposits
	December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)	2023		2023		2023		2023		2022
Consumer	$	10,319,809	$	10,036,261	$	10,018,931	$	10,158,833	$	10,304,335
Commercial		8,601,224		8,564,536		8,019,971		8,594,441		8,569,670
Public and Other		2,134,012		2,201,512		2,469,713		1,738,026		1,741,691
Total Deposits	$	21,055,045	$	20,802,309	$	20,508,615	$	20,491,300	$	20,615,696


Average Deposits
	Three Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)	2023		2023		2023		2023		2022
Consumer	$	10,092,727	$	9,963,690	$	9,977,239	$	10,178,988	$	10,295,563
Commercial		8,581,426		8,288,891		8,138,358		8,611,960		8,588,198
Public and Other		2,029,917		2,239,501		1,903,004		1,639,934		1,457,566
Total Deposits	$	20,704,070	$	20,492,082	$	20,018,601	$	20,430,882	$	20,341,327

Bank of Hawai‘i Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More													Table 11
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	2023			2023			2023			2023			2022
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial	$	39		$	43		$	17		$	31		$	37
Commercial Mortgage		2,884			2,996			3,107			3,216			3,309
Total Commercial		2,923			3,039			3,124			3,247			3,346
Consumer
Residential Mortgage		2,935			3,706			3,504			4,199			4,239
Home Equity		3,791			3,734			3,809			3,638			4,022
Total Consumer		6,726			7,440			7,313			7,837			8,261
Total Non-Accrual Loans and Leases		9,649			10,479			10,437			11,084			11,607
Foreclosed Real Estate		2,098			1,040			1,040			1,040			1,040
Total Non-Performing Assets	$	11,747		$	11,519		$	11,477		$	12,124		$	12,647

Accruing Loans and Leases Past Due 90 Days or More
Consumer
Residential Mortgage	$	3,814		$	3,519		$	3,560		$	4,566		$	2,429
Home Equity		1,734			2,172			2,022			1,723			1,673
Automobile		399			393			577			598			589
Other ¹		648			643			633			632			683
Total Consumer		6,595			6,727			6,792			7,519			5,374
Total Accruing Loans and Leases Past Due 90 Days or More	$	6,595		$	6,727		$	6,792		$	7,519		$	5,374
Total Loans and Leases	$	13,965,026		$	13,919,491		$	13,914,889		$	13,824,522		$	13,646,420

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

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

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

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

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

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		0.13	%		0.13	%		0.13	%		0.14	%		0.13	%

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter	$	11,519		$	11,477		$	12,124		$	12,647		$	13,868
Additions		2,683			1,318			1,116			552			704
Reductions
Payments		(2,018	)		(1,017	)		(226	)		(778	)		(1,605	)
Return to Accrual Status		(437	)		(259	)		(1,527	)		(297	)		(301	)
Charge-offs / Write-downs		-			-			(10	)		-			(19	)
Total Reductions		(2,455	)		(1,276	)		(1,763	)		(1,075	)		(1,925	)
Balance at End of Quarter	$	11,747		$	11,519		$	11,477		$	12,124		$	12,647

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									Year Ended
	December 31,			September 30,			December 31,			December 31,
(dollars in thousands)	2023			2023			2022			2023			2022
Balance at Beginning of Period	$	151,653		$	151,702		$	152,927		$	151,247		$	164,297

Loans and Leases Charged-Off
Commercial
Commercial and Industrial		(229	)		(294	)		(196	)		(987	)		(925	)
Consumer
Residential Mortgage		-			-			-			(6	)		(80	)
Home Equity		(14	)		(13	)		(10	)		(82	)		(100	)
Automobile		(938	)		(1,353	)		(1,171	)		(5,247	)		(4,652	)
Other ¹		(2,349	)		(1,957	)		(1,846	)		(8,645	)		(7,585	)
Total Loans and Leases Charged-Off		(3,530	)		(3,617	)		(3,223	)		(14,967	)		(13,342	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial		125			72			87			350			552
Consumer
Residential Mortgage		301			69			63			489			1,193
Home Equity		180			131			202			1,073			1,500
Automobile		612			721			412			2,782			2,276
Other ¹		588			575			604			2,455			2,702
Total Recoveries on Loans and Leases Previously Charged-Off		1,806			1,568			1,368			7,149			8,223
Net Charged-Off - Loans and Leases		(1,724	)		(2,049	)		(1,855	)		(7,818	)		(5,119	)
Net Charged-Off - Accrued Interest Receivable		-			-			(25	)		-			(131	)
Provision for Credit Losses:
Loans and Leases		2,864			1,945			(142	)		9,782			(8,263	)
Accrued Interest Receivable		-			-			25			-			(283	)
Unfunded Commitments		(364	)		55			317			(782	)		746
Total Provision for Credit Losses		2,500			2,000			200			9,000			(7,800	)
Balance at End of Period	$	152,429		$	151,653		$	151,247		$	152,429		$	151,247

Components
Allowance for Credit Losses - Loans and Leases	$	146,403		$	145,263		$	144,439		$	146,403		$	144,439
Reserve for Unfunded Commitments		6,026			6,390			6,808			6,026			6,808
Total Reserve for Credit Losses	$	152,429		$	151,653		$	151,247		$	152,429		$	151,247

Average Loans and Leases Outstanding	$	13,906,114		$	13,903,214		$	13,452,791		$	13,851,551		$	12,896,510

Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)		0.05	%		0.06	%		0.05	%		0.06	%		0.04	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding ²		1.05	%		1.04	%		1.06	%		1.05	%		1.06	%

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 December 31, 2023
Net Interest Income (Loss)	$	101,868		$	51,663		$	(37,746	)	$	115,785
Provision for Credit Losses		1,738			(15	)		777			2,500
Net Interest Income (Loss) After Provision for Credit Losses		100,130			51,678			(38,523	)		113,285
Noninterest Income		32,247			7,944			2,092			42,283
Noninterest Expense		(92,793	)		(18,958	)		(4,211	)		(115,962	)
Income (Loss) Before Income Taxes		39,584			40,664			(40,642	)		39,606
Provision for Income Taxes		(10,165	)		(10,316	)		11,271			(9,210	)
Net Income (Loss)	$	29,419		$	30,348		$	(29,371	)	$	30,396
Total Assets as of December 31, 2023	$	8,486,255		$	5,831,880		$	9,415,161		$	23,733,296

Three Months Ended December 31, 2022 ¹
Net Interest Income (Loss)	$	94,799		$	56,879		$	(10,940	)	$	140,738
Provision for Credit Losses		1,861			(6	)		(1,655	)		200
Net Interest Income (Loss) After Provision for Credit Losses		92,938			56,885			(9,285	)		140,538
Noninterest Income		31,526			8,288			1,358			41,172
Noninterest Expense		(82,286	)		(17,587	)		(2,830	)		(102,703	)
Income (Loss) Before Income Taxes		42,178			47,586			(10,757	)		79,007
Provision for Income Taxes		(10,840	)		(12,005	)		5,145			(17,700	)
Net Income (Loss)	$	31,338		$	35,581		$	(5,612	)	$	61,307
Total Assets as of December 31, 2022	$	8,520,459		$	5,522,916		$	9,563,502		$	23,606,877

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
Year Ended December 31, 2023
Net Interest Income (Loss)	$	400,380		$	215,865		$	(119,220	)	$	497,025
Provision for Credit Losses		7,773			44			1,183			9,000
Net Interest Income (Loss) After Provision for Credit Losses		392,607			215,821			(120,403	)		488,025
Noninterest Income		126,373			33,016			17,220			176,609
Noninterest Expense		(340,336	)		(77,486	)		(19,696	)		(437,518	)
Income (Loss) Before Income Taxes		178,644			171,351			(122,879	)		227,116
Provision for Income Taxes		(46,003	)		(42,806	)		32,895			(55,914	)
Net Income (Loss)	$	132,641		$	128,545		$	(89,984	)	$	171,202
Total Assets as of December 31, 2023	$	8,486,255		$	5,831,880		$	9,415,161		$	23,733,296

Year Ended December 31, 2022 ¹
Net Interest Income	$	327,445		$	209,273		$	3,840		$	540,558
Provision for Credit Losses		5,324			(206	)		(12,918	)		(7,800	)
Net Interest Income After Provision for Credit Losses		322,121			209,479			16,758			548,358
Noninterest Income		126,337			25,938			5,266			157,541
Noninterest Expense		(330,140	)		(70,601	)		(14,524	)		(415,265	)
Income Before Income Taxes		118,318			164,816			7,500			290,634
Provision for Income Taxes		(29,954	)		(40,659	)		5,783			(64,830	)
Net Income	$	88,364		$	124,157		$	13,283		$	225,804
Total Assets as of December 31, 2022	$	8,520,459		$	5,522,916		$	9,563,502		$	23,606,877

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
	December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands, except per share amounts)	2023				2023				2023				2023				2022
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	158,324			$	151,245			$	144,541			$	136,501			$	128,683
Income on Investment Securities
Available-for-Sale		22,782				23,552				23,301				23,893				18,476
Held-to-Maturity		22,589				22,838				23,375				23,948				23,708
Deposits		23				18				18				27				13
Funds Sold		5,705				12,828				6,395				3,366				1,093
Other		924				1,464				2,121				597				340
Total Interest Income		210,347				211,945				199,751				188,332				172,313
Interest Expense
Deposits		87,121				72,153				53,779				37,794				23,494
Securities Sold Under Agreements to Repurchase		1,459				4,034				5,436				5,377				4,289
Funds Purchased		-				-				184				704				318
Short-Term Borrowings		-				-				2,510				3,203				1,978
Other Debt		5,982				14,821				13,494				5,299				1,496
Total Interest Expense		94,562				91,008				75,403				52,377				31,575
Net Interest Income		115,785				120,937				124,348				135,955				140,738
Provision for Credit Losses		2,500				2,000				2,500				2,000				200
Net Interest Income After Provision for Credit Losses		113,285				118,937				121,848				133,955				140,538
Noninterest Income
Trust and Asset Management		11,144				10,548				11,215				10,690				10,652
Mortgage Banking		1,016				1,059				1,176				1,004				991
Service Charges on Deposit Accounts		7,949				7,843				7,587				7,737				7,513
Fees, Exchange, and Other Service Charges		13,774				13,824				14,150				13,808				13,906
Investment Securities Losses, Net		(1,619	)			(6,734	)			(1,310	)			(1,792	)			(1,124	)
Annuity and Insurance		1,271				1,156				1,038				1,271				1,087
Bank-Owned Life Insurance		3,176				2,749				2,876				2,842				2,475
Other		5,572				19,889				6,523				5,177				5,672
Total Noninterest Income		42,283				50,334				43,255				40,737				41,172
Noninterest Expense
Salaries and Benefits		53,991				58,825				56,175				65,088				57,639
Net Occupancy		9,734				10,327				9,991				9,872				9,499
Net Equipment		9,826				9,477				10,573				10,375				9,942
Data Processing		4,948				4,706				4,599				4,583				4,579
Professional Fees		5,079				3,846				4,651				3,883				3,958
FDIC Insurance		18,545				3,361				3,173				3,234				1,774
Other		13,839				15,059				14,874				14,884				15,312
Total Noninterest Expense		115,962				105,601				104,036				111,919				102,703
Income Before Provision for Income Taxes		39,606				63,670				61,067				62,773				79,007
Provision for Income Taxes		9,210				15,767				15,006				15,931				17,700
Net Income	$	30,396			$	47,903			$	46,061			$	46,842			$	61,307
Preferred Stock Dividends		1,969				1,969				1,969				1,969				1,969
Net Income Available to Common Shareholders	$	28,427			$	45,934			$	44,092			$	44,873			$	59,338

Basic Earnings Per Common Share	$	0.72			$	1.17			$	1.12			$	1.14			$	1.51
Diluted Earnings Per Common Share	$	0.72			$	1.17			$	1.12			$	1.14			$	1.50

Balance Sheet Totals
Loans and Leases	$	13,965,026			$	13,919,491			$	13,914,889			$	13,824,522			$	13,646,420
Total Assets		23,733,296				23,549,785				24,947,936				23,931,977				23,606,877
Total Deposits		21,055,045				20,802,309				20,508,615				20,491,300				20,615,696
Total Shareholders' Equity		1,414,242				1,363,840				1,358,279				1,354,430				1,316,995

Performance Ratios
Return on Average Assets		0.51		%		0.78		%		0.77		%		0.80		%		1.05	%
Return on Average Shareholders' Equity		8.86				13.92				13.55				14.25				18.91
Return on Average Common Equity		9.55				15.38				14.95				15.79				21.28
Efficiency Ratio ¹		73.36				61.66				62.07				63.34				56.46
Net Interest Margin ²		2.13				2.13				2.22				2.47				2.60

¹ Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).

² Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.

Bank of Hawai‘i Corporation and Subsidiaries
Hawaii Economic Trends												Table 15
	Eleven Months Ended				Year Ended
(dollars in millions; jobs in thousands)	November 30, 2023				December 31, 2022					December 31, 2021
Hawaii Economic Trends
State General Fund Revenues¹	$	8,726.1	0.6	%	$	9,441.3		16.0	%	$	8,137.9	26.9	%
General Excise and Use Tax Revenue¹		4,118.7	5.2			4,263.4		18.3			3,604.3	18.6
Jobs ²		655.6				654.5					642.6

								November 30,		December 31,
								2023		2022		2021
Unemployment, seasonally adjusted³
Statewide								2.9	%		3.7%	3.2	%
Honolulu County								2.6			3.3	3.7
Hawaii County								1.9			4.7	1.8
Maui County								5.9			4.5	2.4
Kauai County								1.9			4.7	2.7

					December 31,
(1-year percentage change, except months of inventory)					2023			2022		2021		2020
Housing Trends (Single Family Oahu) ⁴
Median Home Price						(5.0	)%	11.6	%		19.3%	5.2	%
Home Sales Volume (units)						(26.3	)%	(23.2	)%		17.9%	2.3	%
Months of Inventory						2.8		2.1			0.8	1.4

					Monthly Visitor Arrivals,					Percentage Change
(in thousands, except percent change)					Not Seasonally Adjusted					from Previous Year
Tourism 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								858.1				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
April 30, 2022								809.6				67.3
March 31, 2022								785.7				78.7
February 28, 2022								623.7				165.1
January 31, 2022								567.2				229.8
December 31,2021								752.8				219.3
November 30, 2021								614.0				234.1

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

² Source: U.S. Bureau of Labor Statistics

³ Source: University of Hawaii Economic Research Organization (UHERO)

⁴ Source: Honolulu Board of Realtors

⁵ Source: Hawaii Tourism Authority

View source version on businesswire.com: https://www.businesswire.com/news/home/20240122109934/en/

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Bank of Hawai‘i Corporation Fourth Quarter 2023 Financial Results

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