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Bank of Hawaii Corporation Second Quarter 2022 Financial Results

By: Bank of Hawaii Corporation via Business Wire

July 25, 2022 at 06:45 AM EDT

Diluted Earnings Per Common Share $1.38
Net Income $56.9 Million
Board of Directors Declares Dividend of $0.70 Per Common Share

Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per common share of $1.38 for the second quarter of 2022, compared with diluted earnings per common share of $1.32 in the previous quarter and $1.68 in the same quarter last year. Net income for the second quarter of 2022 was $56.9 million, up 3.7% from the first quarter of 2022 and down 15.8% from the second quarter of 2021. The decrease from the second quarter of 2021 was primarily due to a smaller release of the allowance for credit losses and lower PPP income in the current quarter and one-time items in the second quarter of 2021.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220725005251/en/

“Bank of Hawaii performed well during the second quarter of 2022," said Peter Ho, Chairman, President, and CEO. “Net interest margin expanded, driven by robust core loan growth and higher interest rates. At the same time, asset quality continued its sound and stable trend, and capital and liquidity remained strong, positioning us well for the future.”

Financial Highlights

The return on average assets for the second quarter of 2022 was 1.00% compared with 0.97% in the previous quarter and 1.23% in the same quarter of 2021.
The return on average common equity for the second quarter of 2022 was 18.19% compared with 15.44% in the previous quarter and 19.61% in the same quarter of 2021.
Net interest income for the second quarter of 2022 was $132.9 million, an increase of 6.1% from the first quarter of 2022 and an increase of 7.6% from the second quarter of 2021. Net interest margin was 2.47% in the second quarter of 2022, an increase of 13 basis points compared to the previous quarter and an increase of 10 basis points from the same quarter of 2021.
- The increase in net interest income and margin in the second quarter of 2022 compared to prior periods was due to the higher rate environment and continued strong loan growth.
- The second quarter of 2022 included $1.1 million of interest recoveries.
The provision for credit losses for the second quarter of 2022 was a net benefit of $2.5 million compared with a net benefit of $5.5 million in the previous quarter and a net benefit of $16.1 million in the same quarter of 2021.
Noninterest income was $42.2 million in the second quarter of 2022, a decrease of 3.2% from the previous quarter and a decrease of 5.1% from the same quarter of 2021.
- Noninterest income in the second quarter of 2021 included a gain of $3.7 million related to the sale of investment securities.
Noninterest expense was $102.9 million in the second quarter of 2022, a decrease of 0.9% from the previous quarter and an increase of 6.6% from the same quarter of 2021.
- Compared to the same period in 2021, noninterest expense included the impact of higher salaries and benefits and occupancy expenses. Significant one-time items included in noninterest expense during the second quarter of 2021 were fees related to the early termination of FHLB advances and repurchase agreements of $3.2 million offset by a gain on the sale of property of $3.1 million.
The effective tax rate for the second quarter of 2022 was 23.80% compared with 22.15% in the previous quarter and 22.84% during the same quarter of 2021.

Asset Quality

The Company’s overall asset quality continued to remain strong during the second quarter of 2022.

Total non-performing assets were $15.5 million at June 30, 2022, down by $4.5 million from March 31, 2022 and down $3.5 million from June 30, 2021. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.12% at the end of the quarter, a decrease of 4 basis points from the end of both the prior quarter and same quarter of 2021.
Net loan and lease charge-offs during the second quarter of 2022 were $0.6 million or 0.02% annualized of total average loans and leases outstanding.
- Net loan and lease charge-offs for the second quarter of 2022 were comprised of charge-offs of $3.3 million partially offset by recoveries of $2.7 million.
- Compared to the prior quarter, net loan and lease charge-offs decreased by $0.9 million or 3 basis points annualized on total average loans and leases outstanding.
- Compared to the same quarter of 2021, net loan and lease charge-offs decreased by $0.6 million or 2 basis points annualized on total average loans and leases outstanding.
The allowance for credit losses on loans and leases was $148.5 million at June 30, 2022, a decrease of $3.5 million from March 31, 2022 and a decrease of $31.9 million from June 30, 2021. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.15% at the end of the quarter, down 6 basis points from the end of the prior quarter and down 35 basis points from the end of the same quarter of 2021.

Balance Sheet

Total assets were $23.2 billion at June 30, 2022, an increase of 1.0% from March 31, 2022 and an increase of 2.5% from June 30, 2021.
The investment securities portfolio was $8.3 billion at June 30, 2022, a decrease of 5.4% from March 31, 2022 and an increase of 2.3% from June 30, 2021.
- 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 $13.0 billion at June 30, 2022, an increase of 3.2% from March 31, 2022 and an increase of 7.6% from June 30, 2021.
- Total loans and leases excluding PPP loans were $12.9 billion at June 30, 2022, an increase of 3.5% from March 31, 2022 and an increase of 12.1% from June 30, 2021.
Total deposits reached a new record high of $21.0 billion at June 30, 2022, an increase of 1.5% from March 31, 2022 and an increase of 4.2% from June 30, 2021.

Capital and Dividends

The Tier 1 Capital Ratio was 13.01% at June 30, 2022 compared with 13.22% at March 31, 2022 and 13.87% at June 30, 2021.
The Tier 1 Leverage Ratio was 7.29% at June 30, 2022 compared with 7.30% at March 31, 2022 and 7.31% at June 30, 2021.
The Company repurchased 131.0 thousand shares of common stock at a total cost of $10.0 million under its share repurchase program in the second quarter of 2022 at an average cost of $75.94 per share repurchased.
- Total remaining buyback authority under the share repurchase program was $65.8 million at June 30, 2022.
The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on September 15, 2022 to shareholders of record at the close of business on August 31, 2022.
On July 5, 2022, 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 August 1, 2022 to shareholders of record of the preferred stock at the close of business on July 18, 2022.

Conference Call Information

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

The webcast can be accessed via the link below: https://register.vevent.com/register/BI5cab369e40f24955998dbcc8ff22bf70.
A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawaii Time on Monday, July 25, 2022. The replay will be accessible via the same link. In addition, the replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2021 and its Form 10-Q for the fiscal quarter ended March 31, 2022, which were filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

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

Bank of Hawaii Corporation and Subsidiaries
Financial Highlights																	Table 1
	Three Months Ended												Six Months Ended
	June 30,				March 31,				June 30,				June 30,
(dollars in thousands, except per share amounts)	2022				2022				2021				2022				2021
For the Period:
Operating Results
Net Interest Income	$	132,902			$	125,263			$	123,514			$	258,165			$	244,083
Provision for Credit Losses		(2,500	)			(5,500	)			(16,100	)			(8,000	)			(30,400	)
Total Noninterest Income		42,158				43,551				44,431				85,709				87,401
Total Noninterest Expense		102,939				103,874				96,527				206,813				195,392
Net Income		56,862				54,834				67,533				111,696				127,482
Basic Earnings Per Common Share		1.38				1.33				1.69				2.71				3.20
Diluted Earnings Per Common Share		1.38				1.32				1.68				2.70				3.18
Dividends Declared Per Common Share		0.70				0.70				0.67				1.40				1.34

Performance Ratios
Return on Average Assets		1.00		%		0.97		%		1.23		%		0.98		%		1.19		%
Return on Average Shareholders' Equity		16.40				14.18				19.17				15.23				18.43
Return on Average Common Equity ¹		18.19				15.44				19.61				16.73				18.64
Efficiency Ratio ²		58.80				61.53				57.47				60.14				58.94
Net Interest Margin ³		2.47				2.34				2.37				2.41				2.40
Dividend Payout Ratio ⁴		50.72				52.63				39.64				51.66				41.88
Average Shareholders' Equity to Average Assets		6.08				6.87				6.40				6.47				6.45

Average Balances
Average Loans and Leases	$	12,700,825			$	12,290,402			$	12,096,308			$	12,496,747			$	12,024,844
Average Assets		22,891,262				22,847,488				22,073,569				22,869,496				21,614,669
Average Deposits		20,569,363				20,426,076				19,698,285				20,498,115				19,184,607
Average Shareholders' Equity		1,390,653				1,568,725				1,412,924				1,479,197				1,395,197

Per Share of Common Stock
Book Value ¹	$	29.09			$	31.50			$	34.68			$	29.09			$	34.68
Tangible Book Value ¹		28.30				30.71				33.91				28.30				33.91
Market Value
Closing		74.40				83.92				84.22				74.40				84.22
High		84.93			��	92.38				95.95				92.38				99.10
Low		70.97				79.60				81.23				70.97				75.65

					June 30,				March 31,				December 31,				June 30,
					2022				2022				2021				2021
As of Period End:
Balance Sheet Totals
Loans and Leases					$	12,951,573			$	12,544,492			$	12,259,076			$	12,041,378
Total Assets						23,232,699				23,000,317				22,784,941				22,672,183
Total Deposits						21,025,681				20,716,287				20,360,108				20,169,709
Other Debt						10,343				10,367				10,391				10,437
Total Shareholders' Equity						1,348,746				1,448,885				1,611,611				1,583,531

Asset Quality
Non-Performing Assets					$	15,493			$	19,979			$	18,966			$	18,974
Allowance for Credit Losses - Loans and Leases						148,512				152,028				157,821				180,385
Allowance to Loans and Leases Outstanding ⁵						1.15		%		1.21		%		1.29		%		1.50		%

Capital Ratios ⁶
Common Equity Tier 1 Capital Ratio						11.66		%		11.83		%		12.12		%		12.36		%
Tier 1 Capital Ratio						13.01				13.22				13.56				13.87
Total Capital Ratio						14.14				14.41				14.81				15.13
Tier 1 Leverage Ratio						7.29				7.30				7.32				7.31
Total Shareholders' Equity to Total Assets						5.81				6.30				7.07				6.98
Tangible Common Equity to Tangible Assets ^{1, 7}						4.90				5.39				6.15				6.06
Tangible Common Equity to Risk-Weighted Assets ^{1, 7}						8.72				9.77				11.44				11.81

Non-Financial Data
Full-Time Equivalent Employees						2,114				2,084				2,056				2,085
Branches						54				54				54				54
ATMs						310				307				307				312

¹ Return on Average Common Equity was revised from 19.60% for the three months ended June 30, 2021 and 18.63% for the six months ended June 30, 2021; Book Value was revised from $34.80 for the three months ended and six months ended June 30, 2021; Tangible Book Value was revised from $34.02 for the three months ended and six months ended June 30, 2021; Tangible Common Equity to Tangible Assets was revised from 6.08% for the three months ended June 30, 2021; Tangible Common Equity to Risk-Weighted Assets was revised from 11.85% for the three months ended June 30, 2021.
² Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
³ Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
⁴ Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.
⁵ The numerator comprises the Allowance for Credit Losses - Loans and Leases.
⁶ Regulatory capital ratios as of June 30, 2022 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 Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures										Table 2
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands)	2022			2022			2021			2021

Total Shareholders' Equity	$	1,348,746		$	1,448,885		$	1,611,611		$	1,583,531
Less: Preferred Stock ¹		180,000			180,000			180,000			180,000
Goodwill		31,517			31,517			31,517			31,517
Tangible Common Equity ¹	$	1,137,229		$	1,237,368		$	1,400,094		$	1,372,014

Total Assets		23,232,699			23,000,317			22,784,941			22,672,183
Less: Goodwill		31,517			31,517			31,517			31,517
Tangible Assets	$	23,201,182		$	22,968,800		$	22,753,424		$	22,640,666

Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements ²	$	13,035,674		$	12,663,646		$	12,236,805		$	11,614,522

Total Shareholders' Equity to Total Assets		5.81	%		6.30	%		7.07	%		6.98	%
Tangible Common Equity to Tangible Assets (Non-GAAP) ¹		4.90	%		5.39	%		6.15	%		6.06	%

Tier 1 Capital Ratio ¹		13.01	%		13.22	%		13.56	%		13.87	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) ^{1, 2}		8.72	%		9.77	%		11.44	%		11.81	%

¹ Preferred Stock was revised from $175,487 for the three months ended June 30, 2021; Tangible Common Equity was revised from $1,376,527 for the three months ended June 30, 2021; Tangible Common Equity to Tangible Assets (Non-GAAP) was revised from 6.08% for the three months ended June 30, 2021; Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) was revised from 11.85% for the three months ended June 30, 2021.
² Regulatory capital ratios as of June 30, 2022 are preliminary.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income													Table 3
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands, except per share amounts)	2022			2022			2021			2022			2021
Interest Income
Interest and Fees on Loans and Leases	$	101,663		$	94,439		$	100,894		$	196,102		$	200,193
Income on Investment Securities
Available-for-Sale		17,984			17,100			16,467			35,084			32,304
Held-to-Maturity		18,838			18,701			13,576			37,539			26,876
Deposits		5			4			-			9			7
Funds Sold		719			127			260			846			397
Other		353			202			182			555			367
Total Interest Income		139,562			130,573			131,379			270,135			260,144
Interest Expense
Deposits		3,535			2,353			4,152			5,888			8,481
Securities Sold Under Agreements to Repurchase		2,794			2,772			3,470			5,566			7,003
Funds Purchased		57			2			-			59			1
Short-Term Borrowings		92			-			-			92			-
Other Debt		182			183			243			365			576
Total Interest Expense		6,660			5,310			7,865			11,970			16,061
Net Interest Income		132,902			125,263			123,514			258,165			244,083
Provision for Credit Losses		(2,500	)		(5,500	)		(16,100	)		(8,000	)		(30,400	)
Net Interest Income After Provision for Credit Losses		135,402			130,763			139,614			266,165			274,483
Noninterest Income
Trust and Asset Management		11,457			11,276			11,682			22,733			22,960
Mortgage Banking		1,247			2,740			3,058			3,987			8,920
Service Charges on Deposit Accounts		7,309			7,272			6,065			14,581			12,193
Fees, Exchange, and Other Service Charges		14,193			12,952			13,807			27,145			27,414
Investment Securities Losses, Net		(1,295	)		(1,545	)		2,423			(2,840	)		1,220
Annuity and Insurance		870			791			911			1,661			1,613
Bank-Owned Life Insurance		2,658			2,349			2,063			5,007			3,980
Other		5,719			7,716			4,422			13,435			9,101
Total Noninterest Income		42,158			43,551			44,431			85,709			87,401
Noninterest Expense
Salaries and Benefits		57,769			59,924			56,161			117,693			112,412
Net Occupancy		9,930			9,826			5,047			19,756			14,137
Net Equipment		9,543			9,153			8,796			18,696			17,674
Data Processing		4,607			4,560			4,557			9,167			10,879
Professional Fees		3,542			3,258			3,114			6,800			6,520
FDIC Insurance		1,590			1,502			1,669			3,092			3,323
Other		15,958			15,651			17,183			31,609			30,447
Total Noninterest Expense		102,939			103,874			96,527			206,813			195,392
Income Before Provision for Income Taxes		74,621			70,440			87,518			145,061			166,492
Provision for Income Taxes		17,759			15,606			19,985			33,365			39,010
Net Income	$	56,862		$	54,834		$	67,533		$	111,696		$	127,482
Preferred Stock Dividends		1,969			1,969			-			3,938			-
Net Income Available to Common Shareholders	$	54,893		$	52,865		$	67,533		$	107,758		$	127,482
Basic Earnings Per Common Share	$	1.38		$	1.33		$	1.69		$	2.71		$	3.20
Diluted Earnings Per Common Share	$	1.38		$	1.32		$	1.68		$	2.70		$	3.18
Dividends Declared Per Common Share	$	0.70		$	0.70		$	0.67		$	1.40		$	1.34
Basic Weighted Average Common Shares		39,693,593			39,752,679			39,902,583			39,722,985			39,865,268
Diluted Weighted Average Common Shares		39,842,608			39,956,391			40,122,905			39,896,700			40,096,527

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)													Table 4
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands)	2022			2022			2021			2022			2021
Net Income	$	56,862		$	54,834		$	67,533		$	111,696		$	127,482
Other Comprehensive Loss, Net of Tax:
Net Unrealized Losses on Investment Securities		(122,647	)		(180,124	)		(123	)		(302,771	)		(50,173	)
Defined Benefit Plans		352			353			442			705			883
Other Comprehensive Income (Loss)		(122,295	)		(179,771	)		319			(302,066	)		(49,290	)
Comprehensive Income (Loss)	$	(65,433	)	$	(124,937	)	$	67,852		$	(190,370	)	$	78,192

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands)	2022			2022			2021			2021
Assets
Interest-Bearing Deposits in Other Banks	$	2,264		$	2,488		$	2,571		$	2,584
Funds Sold		576,430			356,373			361,536			909,730
Investment Securities
Available-for-Sale		3,955,476			4,258,534			4,276,056			4,522,941
Held-to-Maturity (Fair Value of $3,823,739; $4,171,262; $4,646,619; and $3,965,117)		4,321,693			4,489,615			4,694,780			3,947,613
Loans Held for Sale		4,514			5,293			26,746			47,490
Loans and Leases		12,951,573			12,544,492			12,259,076			12,041,378
Allowance for Credit Losses		(148,512	)		(152,028	)		(157,821	)		(180,385	)
Net Loans and Leases		12,803,061			12,392,464			12,101,255			11,860,993
Total Earning Assets		21,663,438			21,504,767			21,462,944			21,291,351
Cash and Due from Banks		260,672			236,193			196,327			269,153
Premises and Equipment, Net		202,063			199,743			199,393			198,508
Operating Lease Right-of-Use Assets		91,901			93,563			95,621			97,264
Accrued Interest Receivable		47,141			45,392			45,242			47,046
Foreclosed Real Estate		2,332			2,332			2,332			2,332
Mortgage Servicing Rights		23,540			23,968			22,251			21,473
Goodwill		31,517			31,517			31,517			31,517
Bank-Owned Life Insurance		448,925			446,926			344,587			292,805
Other Assets		461,170			415,916			384,727			420,734
Total Assets	$	23,232,699		$	23,000,317		$	22,784,941		$	22,672,183

Liabilities
Deposits
Noninterest-Bearing Demand	$	7,374,055		$	7,500,741		$	7,275,287		$	6,570,232
Interest-Bearing Demand		4,339,520			4,591,178			4,628,567			4,498,825
Savings		8,054,899			7,701,849			7,456,165			7,704,575
Time		1,257,207			922,519			1,000,089			1,396,077
Total Deposits		21,025,681			20,716,287			20,360,108			20,169,709
Securities Sold Under Agreements to Repurchase		425,490			450,490			450,490			550,490
Other Debt		10,343			10,367			10,391			10,437
Operating Lease Liabilities		99,722			101,274			103,210			105,380
Retirement Benefits Payable		37,532			38,008			38,494			50,260
Accrued Interest Payable		2,545			2,545			2,499			3,879
Taxes Payable		10,607			17,265			11,901			11,844
Other Liabilities		272,033			215,196			196,237			186,653
Total Liabilities		21,883,953			21,551,432			21,173,330			21,088,652
Shareholders' Equity
Preferred Stock ($.01 par value; authorized 180,000 shares;
issued / outstanding: June 30, 2022; March 31, 2022; December 31, 2021;		180,000			180,000			180,000			180,000
and June 30, 2021 - 180,000)
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: June 30, 2022 - 58,727,909 / 40,182,659;
March 31, 2022 - 58,717,811 / 40,288,365; December 31, 2021 - 58,554,669 / 40,253,193;		582			582			581			580
and June 30, 2021 - 58,557,754 / 40,465,482)
Capital Surplus		611,694			607,061			602,508			594,261
Accumulated Other Comprehensive Loss		(368,448	)		(246,153	)		(66,382	)		(41,468	)
Retained Earnings		2,002,005			1,974,790			1,950,375			1,884,431
Treasury Stock, at Cost (Shares: June 30, 2022 - 18,545,250; March 31, 2022 - 18,429,446;
December 31, 2021 - 18,301,476; and June 30, 2021 - 18,092,272)		(1,077,087	)		(1,067,395	)		(1,055,471	)		(1,034,273	)
Total Shareholders' Equity		1,348,746			1,448,885			1,611,611			1,583,531
Total Liabilities and Shareholders' Equity	$	23,232,699		$	23,000,317		$	22,784,941		$	22,672,183

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																				Table 6
											Accumulated
											Other
											Compre-
	Preferred			Common							hensive
	Shares	Preferred		Shares		Common		Capital			Income			Retained			Treasury
(dollars in thousands)	Outstanding	Stock		Outstanding		Stock		Surplus			(Loss)			Earnings			Stock			Total
Balance as of December 31, 2021	180,000	$	180,000	40,253,193		$	581	$	602,508		$	(66,382	)	$	1,950,375		$	(1,055,471	)	$	1,611,611
Net Income	-		-	-			-		-			-			111,696			-			111,696
Other Comprehensive Loss	-		-	-			-		-			(302,066	)		-			-			(302,066	)
Share-Based Compensation	-		-	-			-		8,172			-			-			-			8,172
Common Stock Issued under Purchase and
Equity Compensation Plans	-		-	228,225			1		1,014			-			346			2,697			4,058
Common Stock Repurchased	-		-	(298,759	)		-		-			-			-			(24,313	)		(24,313	)
Cash Dividends Declared Common Stock
($1.40 per share)	-		-	-			-		-			-			(56,474	)		-			(56,474	)
Cash Dividends Declared Preferred Stock	-		-	-			-		-			-			(3,938	)		-			(3,938	)
Balance as of June 30, 2022	180,000	$	180,000	40,182,659		$	582	$	611,694		$	(368,448	)	$	2,002,005		$	(1,077,087	)	$	1,348,746

Balance as of December 31, 2020	-		-	40,119,312			580		591,360			7,822			1,811,979			(1,037,234	)		1,374,507
Net Income	-		-	-			-		-			-			127,482			-			127,482
Other Comprehensive Loss	-		-	-			-		-			(49,290	)		-			-			(49,290	)
Share-Based Compensation	-		-	-			-		6,122			-			-			-			6,122
Preferred Stock Issued, Net	180,000		180,000	-			-		(4,513	)		-			-			-			175,487
Common Stock Issued under Purchase and
Equity Compensation Plans	-		-	383,326			-		1,292			-			(891	)		6,259			6,660
Common Stock Repurchased	-		-	(37,156	)		-		-			-			-			(3,298	)		(3,298	)
Cash Dividends Declared Common Stock
($1.34 per share)	-		-	-			-		-			-			(54,139	)		-			(54,139	)
Balance as of June 30, 2021	180,000	$	180,000	40,465,482		$	580	$	594,261		$	(41,468	)	$	1,884,431		$	(1,034,273	)	$	1,583,531

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis ¹															Table 7a
	Three Months Ended						Three Months Ended						Three Months Ended
	June 30, 2022						March 31, 2022						June 30, 2021
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	3.5	$	-	0.59	%	$	3.4	$	-	0.45	%	$	2.2	$	-	0.04	%
Funds Sold		273.5		0.7	1.04			238.5		0.1	0.21			946.2		0.3	0.11
Investment Securities
Available-for-Sale
Taxable		4,123.1		18.0	1.74			4,399.9		17.1	1.56			4,290.8		16.3	1.53
Non-Taxable		2.9		-	1.99			3.0		-	1.93			12.3		0.1	4.27
Held-to-Maturity
Taxable		4,377.0		18.7	1.71			4,567.4		18.6	1.63			3,496.2		13.4	1.53
Non-Taxable		35.7		0.2	2.10			35.8		0.2	2.10			41.5		0.3	2.53
Total Investment Securities		8,538.7		36.9	1.73			9,006.1		35.9	1.59			7,840.8		30.1	1.54
Loans Held for Sale		6.3		0.1	4.06			13.7		0.1	2.78			25.7		0.2	2.86
Loans and Leases ²
Commercial and Industrial		1,330.0		9.9	2.99			1,332.9		9.0	2.73			1,271.4		9.3	2.93
Paycheck Protection Program		38.7		0.5	5.26			89.0		1.8	8.33			663.1		7.5	4.55
Commercial Mortgage		3,357.2		26.2	3.13			3,158.8		21.7	2.80			2,883.5		21.3	2.96
Construction		222.6		2.4	4.39			227.6		2.1	3.68			285.6		2.6	3.66
Commercial Lease Financing		94.2		0.3	1.44			98.8		0.4	1.45			105.7		0.4	1.54
Residential Mortgage		4,445.7		36.4	3.26			4,343.3		34.9	3.21			4,234.3		35.6	3.35
Home Equity		2,032.9		14.4	2.85			1,898.9		13.3	2.83			1,573.4		12.1	3.09
Automobile		759.1		6.1	3.20			737.4		5.9	3.23			710.4		6.1	3.45
Other ³		420.4		5.6	5.38			403.7		5.5	5.47			368.9		6.0	6.53
Total Loans and Leases		12,700.8		101.8	3.21			12,290.4		94.6	3.10			12,096.3		100.9	3.34
Other		38.2		0.3	3.70			36.7		0.2	2.21			32.3		0.2	2.26
Total Earning Assets ⁴		21,561.0		139.8	2.60			21,588.8		130.9	2.44			20,943.5		131.7	2.52
Cash and Due from Banks		238.4						233.3						256.1
Other Assets		1,091.9						1,025.4						874.0
Total Assets	$	22,891.3					$	22,847.5					$	22,073.6

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	4,442.2		0.7	0.06		$	4,655.4		0.5	0.04		$	4,452.4		0.7	0.07
Savings		7,692.8		1.9	0.10			7,540.6		1.1	0.06			7,533.0		1.8	0.09
Time		950.4		0.9	0.40			971.5		0.8	0.34			1,418.4		1.7	0.47
Total Interest-Bearing Deposits		13,085.4		3.5	0.11			13,167.5		2.4	0.07			13,403.8		4.2	0.12
Short-Term Borrowings		59.8		0.1	0.98			6.8		-	0.11			-		-	-
Securities Sold Under Agreements to Repurchase		447.7		2.8	2.47			450.5		2.8	2.46			570.3		3.5	2.41
Other Debt		10.4		0.3	7.05			10.4		0.2	7.05			30.2		0.2	3.22
Total Interest-Bearing Liabilities		13,603.3		6.7	0.20			13,635.2		5.4	0.16			14,004.3		7.9	0.22
Net Interest Income			$	133.1					$	125.5					$	123.8
Interest Rate Spread					2.40	%					2.28	%					2.30	%
Net Interest Margin					2.47	%					2.34	%					2.37	%
Noninterest-Bearing Demand Deposits		7,484.0						7,258.6						6,294.5
Other Liabilities		413.3						385.0						361.9
Shareholders' Equity		1,390.7						1,568.7						1,412.9
Total Liabilities and Shareholders' Equity	$	22,891.3					$	22,847.5					$	22,073.6

¹ Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
² 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.
³ Comprised of other consumer revolving credit, installment, and consumer lease financing.
⁴ Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $221,000, $254,000, and $269,000 for the three months ended June 30, 2022, March 31, 2022, and June 30, 2021, respectively.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis ¹									Table 7b
	Six Months Ended						Six Months Ended
	June 30, 2022						June 30, 2021
	Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	3.5	$	-	0.52	%	$	2.7	$	-	0.56	%
Funds Sold		256.1		0.8	0.66			749.5		0.4	0.11
Investment Securities
Available-for-Sale
Taxable		4,260.6		35.1	1.65			4,150.2		32.1	1.55
Non-Taxable		3.0		-	1.96			12.3		0.3	4.27
Held-to-Maturity
Taxable		4,471.7		37.2	1.67			3,441.3		26.5	1.54
Non-Taxable		35.8		0.4	2.10			39.8		0.5	2.54
Total Investment Securities		8,771.1		72.7	1.66			7,643.6		59.4	1.55
Loans Held for Sale		10.0		0.2	3.19			25.9		0.4	2.81
Loans and Leases ²
Commercial and Industrial		1,331.5		18.9	2.86			1,295.4		19.0	2.96
Paycheck Protection Program		63.7		2.3	7.39			624.1		12.1	3.91
Commercial Mortgage		3,258.5		48.0	2.97			2,864.9		42.6	3.00
Construction		225.1		4.5	4.03			274.9		4.9	3.57
Commercial Lease Financing		96.5		0.7	1.44			106.1		0.8	1.48
Residential Mortgage		4,394.8		71.2	3.24			4,190.7		71.4	3.41
Home Equity		1,966.3		27.7	2.84			1,583.7		24.7	3.14
Automobile		748.3		11.9	3.22			709.3		12.2	3.48
Other ³		412.1		11.1	5.42			375.7		12.4	6.64
Total Loans and Leases		12,496.8		196.3	3.16			12,024.8		200.1	3.35
Other		37.3		0.6	2.97			32.9		0.4	2.24
Total Earning Assets ⁴		21,574.8		270.6	2.52			20,479.4		260.7	2.56
Cash and Due from Banks		235.8						263.4
Other Assets		1,058.9						871.9
Total Assets	$	22,869.5					$	21,614.7

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	4,548.2		1.2	0.05		$	4,320.2		1.3	0.06
Savings		7,617.1		2.9	0.08			7,276.2		3.3	0.09
Time		960.9		1.8	0.37			1,523.6		3.9	0.52
Total Interest-Bearing Deposits		13,126.2		5.9	0.09			13,120.0		8.5	0.13
Short-Term Borrowings		33.5		0.2	0.89			1.2		-	0.09
Securities Sold Under Agreements to Repurchase		449.1		5.6	2.47			585.3		7.0	2.38
Other Debt		10.4		0.3	7.05			45.3		0.6	2.56
Total Interest-Bearing Liabilities		13,619.2		12.0	0.18			13,751.8		16.1	0.23
Net Interest Income			$	258.6					$	244.6
Interest Rate Spread					2.34	%					2.33	%
Net Interest Margin					2.41	%					2.40	%
Noninterest-Bearing Demand Deposits		7,371.9						6,064.6
Other Liabilities		399.2						403.1
Shareholders' Equity		1,479.2						1,395.2
Total Liabilities and Shareholders' Equity	$	22,869.5					$	21,614.7

¹ Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
² 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.
³ Comprised of other consumer revolving credit, installment, and consumer lease financing.
⁴ Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $475,000 and $521,000 for six months ended June 30, 2022 and June 30, 2021, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended June 30, 2022
	Compared to March 31, 2022
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	-		$	0.6		$	0.6
Investment Securities
Available-for-Sale
Taxable		(1.1	)		2.0			0.9
Held-to-Maturity
Taxable		(0.8	)		0.9			0.1
Total Investment Securities		(1.9	)		2.9			1.0
Loans and Leases
Commercial and Industrial		-			0.9			0.9
Paycheck Protection Program		(0.8	)		(0.5	)		(1.3	)
Commercial Mortgage		1.6			2.9			4.5
Construction		-			0.3			0.3
Commercial Lease Financing		(0.1	)		-			(0.1	)
Residential Mortgage		0.9			0.6			1.5
Home Equity		1.0			0.1			1.1
Automobile		0.2			-			0.2
Other ²		0.2			(0.1	)		0.1
Total Loans and Leases		3.0			4.2			7.2
Other		-			0.1			0.1
Total Change in Interest Income		1.1			7.8			8.9

Change in Interest Expense:
Interest-Bearing Deposits
Demand		-			0.2			0.2
Savings		-			0.8			0.8
Time		-			0.1			0.1
Total Interest-Bearing Deposits		-			1.1			1.1
Short-Term Borrowings		-			0.1			0.1
Other Debt		-			0.1			0.1
Total Change in Interest Expense		-			1.3			1.3

Change in Net Interest Income	$	1.1		$	6.5		$	7.6

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

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8b
	Three Months Ended June 30, 2022
	Compared to June 30, 2021
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(0.3	)	$	0.7		$	0.4
Investment Securities
Available-for-Sale
Taxable		(0.6	)		2.3			1.7
Non-Taxable		(0.1	)		-			(0.1	)
Held-to-Maturity
Taxable		3.6			1.7			5.3
Non-Taxable		-			(0.1	)		(0.1	)
Total Investment Securities		2.9			3.9			6.8
Loans Held for Sale		(0.2	)		0.1			(0.1	)
Loans and Leases
Commercial and Industrial		0.4			0.2			0.6
Paycheck Protection Program		(8.0	)		1.0			(7.0	)
Commercial Mortgage		3.7			1.2			4.9
Construction		(0.7	)		0.5			(0.2	)
Commercial Lease Financing		-			(0.1	)		(0.1	)
Residential Mortgage		1.8			(1.0	)		0.8
Home Equity		3.3			(1.0	)		2.3
Automobile		0.4			(0.4	)		-
Other ²		0.8			(1.2	)		(0.4	)
Total Loans and Leases		1.7			(0.8	)		0.9
Other		-			0.1			0.1
Total Change in Interest Income		4.1			4.0			8.1

Change in Interest Expense:
Interest-Bearing Deposits
Savings		-			0.1			0.1
Time		(0.5	)		(0.3	)		(0.8	)
Total Interest-Bearing Deposits		(0.5	)		(0.2	)		(0.7	)
Short-Term Borrowings		0.1			-			0.1
Securities Sold Under Agreements to Repurchase		(0.8	)		0.1			(0.7	)
Other Debt		(0.1	)		0.2			0.1
Total Change in Interest Expense		(1.3	)		0.1			(1.2	)

Change in Net Interest Income	$	5.4		$	3.9		$	9.3

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

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8c
	Six Months Ended June 30, 2022
	Compared to June 30, 2021
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(0.4	)	$	0.8		$	0.4
Investment Securities
Available-for-Sale
Taxable		0.9			2.1			3.0
Non-Taxable		(0.2	)		(0.1	)		(0.3	)
Held-to-Maturity
Taxable		8.4			2.3			10.7
Non-Taxable		-			(0.1	)		(0.1	)
Total Investment Securities		9.1			4.2			13.3
Loans Held for Sale		(0.2	)		-			(0.2	)
Loans and Leases
Commercial and Industrial		0.6			(0.7	)		(0.1	)
Paycheck Protection Program		(15.8	)		6.0			(9.8	)
Commercial Mortgage		5.9			(0.5	)		5.4
Construction		(1.0	)		0.6			(0.4	)
Commercial Lease Financing		-			(0.1	)		(0.1	)
Residential Mortgage		3.4			(3.6	)		(0.2	)
Home Equity		5.5			(2.5	)		3.0
Automobile		0.7			(1.0	)		(0.3	)
Other ²		1.1			(2.4	)		(1.3	)
Total Loans and Leases		0.4			(4.2	)		(3.8	)
Other		0.1			0.1			0.2
Total Change in Interest Income		9.0			0.9			9.9

Change in Interest Expense:
Interest-Bearing Deposits
Demand		0.1			(0.2	)		(0.1	)
Savings		0.1			(0.5	)		(0.4	)
Time		(1.2	)		(0.9	)		(2.1	)
Total Interest-Bearing Deposits		(1.0	)		(1.6	)		(2.6	)
Short-Term Borrowings		0.2			-			0.2
Securities Sold Under Agreements to Repurchase		(1.6	)		0.2			(1.4	)
Other Debt		(0.8	)		0.5			(0.3	)
Total Change in Interest Expense		(3.2	)		(0.9	)		(4.1	)

Change in Net Interest Income	$	12.2		$	1.8		$	14.0

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 Hawaii Corporation and Subsidiaries
Salaries and Benefits									Table 9
	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,
(dollars in thousands)	2022		2022		2021		2022		2021
Salaries	$	36,721	$	34,932	$	33,413	$	71,653	$	64,982
Incentive Compensation		6,073		6,111		5,172		12,184		11,086
Share-Based Compensation		3,962		3,799		3,174		7,761		5,758
Commission Expense		1,232		1,641		2,599		2,873		5,035
Retirement and Other Benefits		4,036		4,693		5,289		8,729		10,806
Payroll Taxes		3,034		4,944		3,026		7,978		6,994
Medical, Dental, and Life Insurance		2,591		3,234		3,204		5,825		5,628
Separation Expense		120		570		284		690		2,123
Total Salaries and Benefits	$	57,769	$	59,924	$	56,161	$	117,693	$	112,412

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances									Table 10
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)	2022		2022		2021		2021		2021
Commercial
Commercial and Industrial	$	1,323,830	$	1,354,757	$	1,361,921	$	1,325,446	$	1,257,305
Paycheck Protection Program		31,964		57,809		126,779		268,480		513,513
Commercial Mortgage		3,464,126		3,257,689		3,152,130		2,994,520		2,944,435
Construction		246,177		248,363		220,254		296,052		277,393
Lease Financing		89,535		98,107		105,108		107,526		110,500
Total Commercial		5,155,632		5,016,725		4,966,192		4,992,024		5,103,146
Consumer
Residential Mortgage		4,486,571		4,405,718		4,309,602		4,272,540		4,264,180
Home Equity		2,101,612		1,958,285		1,836,588		1,680,229		1,594,781
Automobile		775,065		742,934		736,565		727,234		714,729
Other ¹		432,693		420,830		410,129		400,723		364,542
Total Consumer		7,795,941		7,527,767		7,292,884		7,080,726		6,938,232
Total Loans and Leases	$	12,951,573	$	12,544,492	$	12,259,076	$	12,072,750	$	12,041,378


Deposits
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)	2022		2022		2021		2021		2021
Consumer	$	10,554,121	$	10,654,192	$	10,438,844	$	10,150,199	$	9,848,285
Commercial		8,824,609		8,818,477		8,641,932		8,767,733		8,675,909
Public and Other		1,646,951		1,243,618		1,279,332		1,575,746		1,645,515
Total Deposits	$	21,025,681	$	20,716,287	$	20,360,108	$	20,493,678	$	20,169,709

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

Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More													Table 11
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)	2022			2022			2021			2021			2021
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial	$	85		$	99		$	243		$	209		$	258
Commercial Mortgage		3,462			8,065			8,205			8,309			8,413
Total Commercial		3,547			8,164			8,448			8,518			8,671
Consumer
Residential Mortgage		5,179			3,845			3,305			4,348			2,437
Home Equity		4,435			5,638			4,881			5,422			5,534
Total Consumer		9,614			9,483			8,186			9,770			7,971
Total Non-Accrual Loans and Leases		13,161			17,647			16,634			18,288			16,642
Foreclosed Real Estate		2,332			2,332			2,332			2,332			2,332
Total Non-Performing Assets	$	15,493		$	19,979		$	18,966		$	20,620		$	18,974

Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial	$	-		$	22		$	-		$	-		$	-
Total Commercial		-			22			-			-			-
Consumer
Residential Mortgage		2,638			4,113			3,159			4,776			4,069
Home Equity		2,029			2,722			3,456			2,946			4,498
Automobile		359			504			729			395			277
Other¹		508			649			426			593			434
Total Consumer		5,534			7,988			7,770			8,710			9,278
Total Accruing Loans and Leases Past Due 90 Days or More	$	5,534		$	8,010		$	7,770		$	8,710		$	9,278
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More	$	46,024		$	54,136		$	60,519		$	62,787		$	74,926
Total Loans and Leases	$	12,951,573		$	12,544,492		$	12,259,076		$	12,072,750		$	12,041,378

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases		0.10	%		0.14	%		0.14	%		0.15	%		0.14	%

Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate		0.12	%		0.16	%		0.15	%		0.17	%		0.16	%

Ratio of Non-Performing Assets to Total Assets		0.06	%		0.07	%		0.07	%		0.08	%		0.07	%

Ratio of Commercial Non-Performing Assets to Total Commercial Loans
and Leases and Commercial Foreclosed Real Estate		0.07	%		0.16	%		0.17	%		0.17	%		0.17	%

Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate		0.15	%		0.16	%		0.14	%		0.17	%		0.15	%

Ratio of Non-Performing Assets and Accruing Loans and Leases
Past Due 90 Days or More to Total Loans and Leases
and Foreclosed Real Estate		0.16	%		0.22	%		0.22	%		0.24	%		0.23	%

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter	$	19,979		$	18,966		$	20,620		$	18,974		$	17,883
Additions		2,293			2,243			357			3,171			2,229
Reductions
Payments		(5,511	)		(1,230	)		(972	)		(889	)		(722	)
Return to Accrual Status		(1,267	)		-			(1,038	)		(606	)		(416	)
Charge-offs/Write-downs		(1	)		-			(1	)		(30	)		-
Total Reductions		(6,779	)		(1,230	)		(2,011	)		(1,525	)		(1,138	)
Balance at End of Quarter	$	15,493		$	19,979		$	18,966		$	20,620		$	18,974

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

Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses													Table 12
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands)	2022			2022			2021			2022			2021
Balance at Beginning of Period	$	157,264		$	164,297		$	203,779		$	164,297		$	221,303

Loans and Leases Charged-Off
Commercial
Commercial and Industrial		(233	)		(349	)		(456	)		(582	)		(704	)
Consumer
Residential Mortgage		(80	)		-			(115	)		(80	)		(119	)
Home Equity		(22	)		(68	)		(107	)		(90	)		(123	)
Automobile		(1,157	)		(1,530	)		(1,209	)		(2,687	)		(3,318	)
Other ¹		(1,854	)		(1,961	)		(2,422	)		(3,815	)		(6,336	)
Total Loans and Leases Charged-Off		(3,346	)		(3,908	)		(4,309	)		(7,254	)		(10,600	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial		51			369			144			420			256
Consumer
Residential Mortgage		920			54			481			974			1,436
Home Equity		416			515			527			931			1,060
Automobile		684			739			1,172			1,423			2,091
Other ¹		644			745			801			1,389			1,657
Total Recoveries on Loans and Leases Previously Charged-Off		2,715			2,422			3,125			5,137			6,500
Net Charged-Off - Loans and Leases		(631	)		(1,486	)		(1,184	)		(2,117	)		(4,100	)
Net Charged-Off - Accrued Interest Receivable		-			(47	)		(124	)		(47	)		(432	)
Provision for Credit Losses:
Loans and Leases		(2,885	)		(4,307	)		(16,774	)		(7,192	)		(31,767	)
Accrued Interest Receivable		-			(367	)		(828	)		(367	)		(828	)
Unfunded Commitments		350			(826	)		1,502			(476	)		2,195
Balance at End of Period	$	154,098		$	157,264		$	186,371		$	154,098		$	186,371

Components
Allowance for Credit Losses - Loans and Leases	$	148,512		$	152,028		$	180,385		$	148,512		$	180,385
Allowance for Credit Losses - Accrued Interest Receivable		-			-			1,440			-			1,440
Reserve for Unfunded Commitments		5,586			5,236			4,546			5,586			4,546
Total Reserve for Credit Losses	$	154,098		$	157,264		$	186,371		$	154,098		$	186,371

Average Loans and Leases Outstanding	$	12,700,825		$	12,290,402		$	12,096,308		$	12,496,747		$	12,024,844

Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)		0.02	%		0.05	%		0.04	%		0.03	%		0.07	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding ²		1.15	%		1.21	%		1.50	%		1.15	%		1.50	%

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

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information										Table 13a
	Consumer			Commercial			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			and Other			Total
Three Months Ended June 30, 2022
Net Interest Income	$	75,868		$	49,562		$	7,472		$	132,902
Provision for Credit Losses		502			(1	)		(3,001	)		(2,500	)
Net Interest Income After Provision for Credit Losses		75,366			49,563			10,473			135,402
Noninterest Income		31,953			8,279			1,926			42,158
Noninterest Expense		(82,740	)		(17,026	)		(3,173	)		(102,939	)
Income Before Income Taxes		24,579			40,816			9,226			74,621
Provision for Income Taxes		(6,162	)		(10,145	)		(1,452	)		(17,759	)
Net Income	$	18,417		$	30,671		$	7,774		$	56,862
Total Assets as of June 30, 2022	$	8,179,647		$	5,337,656		$	9,715,396		$	23,232,699

Three Months Ended June 30, 2021
Net Interest Income	$	71,167		$	49,038		$	3,309		$	123,514
Provision for Credit Losses		987			197			(17,284	)		(16,100	)
Net Interest Income After Provision for Credit Losses		70,180			48,841			20,593			139,614
Noninterest Income		32,600			6,575			5,256			44,431
Noninterest Expense		(72,868	)		(15,742	)		(7,917	)		(96,527	)
Income Before Income Taxes		29,912			39,674			17,932			87,518
Provision for Income Taxes		(7,365	)		(9,703	)		(2,917	)		(19,985	)
Net Income	$	22,547		$	29,971		$	15,015		$	67,533
Total Assets as of June 30, 2021	$	7,479,986		$	5,127,431		$	10,064,766		$	22,672,183

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information										Table 13b
	Consumer			Commercial			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			and Other			Total
Six Months Ended June 30, 2022
Net Interest Income	$	146,103		$	95,911		$	16,151		$	258,165
Provision for Credit Losses		2,185			(198	)		(9,987	)		(8,000	)
Net Interest Income After Provision for Credit Losses		143,918			96,109			26,138			266,165
Noninterest Income		63,922			18,477			3,310			85,709
Noninterest Expense		(164,438	)		(35,695	)		(6,680	)		(206,813	)
Income Before Income Taxes		43,402			78,891			22,768			145,061
Provision for Income Taxes		(10,872	)		(19,342	)		(3,151	)		(33,365	)
Net Income	$	32,530		$	59,549		$	19,617		$	111,696
Total Assets as of June 30, 2022	$	8,179,647		$	5,337,656		$	9,715,396		$	23,232,699

Six Months Ended June 30, 2021
Net Interest Income	$	140,929		$	96,181		$	6,973		$	244,083
Provision for Credit Losses		3,853			247			(34,500	)		(30,400	)
Net Interest Income (Loss) After Provision for Credit Losses		137,076			95,934			41,473			274,483
Noninterest Income		66,298			14,433			6,670			87,401
Noninterest Expense		(151,049	)		(31,419	)		(12,924	)		(195,392	)
Income (Loss) Before Income Taxes		52,325			78,948			35,219			166,492
Provision for Income Taxes		(12,839	)		(19,261	)		(6,910	)		(39,010	)
Net Income (Loss)	$	39,486		$	59,687		$	28,309		$	127,482
Total Assets as of June 30, 2021	$	7,479,986		$	5,127,431		$	10,064,766		$	22,672,183

Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data																	Table 14
	Three Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,
(dollars in thousands, except per share amounts)	2022				2022				2021				2021				2021
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	101,663			$	94,439			$	97,853			$	100,570			$	100,894
Income on Investment Securities
Available-for-Sale		17,984				17,100				15,850				16,396				16,467
Held-to-Maturity		18,838				18,701				18,325				16,754				13,576
Deposits		5				4				1				2				-
Funds Sold		719				127				104				382				260
Other		353				202				176				159				182
Total Interest Income		139,562				130,573				132,309				134,263				131,379
Interest Expense
Deposits		3,535				2,353				2,898				3,837				4,152
Securities Sold Under Agreements to Repurchase		2,794				2,772				2,834				3,423				3,470
Funds Purchased		57				2				6				-				-
Short-Term Borrowings		92				-				-				-				-
Other Debt		182				183				183				184				243
Total Interest Expense		6,660				5,310				5,921				7,444				7,865
Net Interest Income		132,902				125,263				126,388				126,819				123,514
Provision for Credit Losses		(2,500	)			(5,500	)			(9,700	)			(10,400	)			(16,100	)
Net Interest Income After Provision for Credit Losses		135,402				130,763				136,088				137,219				139,614
Noninterest Income
Trust and Asset Management		11,457				11,276				11,693				11,415				11,682
Mortgage Banking		1,247				2,740				2,908				3,136				3,058
Service Charges on Deposit Accounts		7,309				7,272				6,861				6,510				6,065
Fees, Exchange, and Other Service Charges		14,193				12,952				14,439				13,604				13,807
Investment Securities Gains (Losses), Net		(1,295	)			(1,545	)			(1,258	)			(1,259	)			2,423
Annuity and Insurance		870				791				876				735				911
Bank-Owned Life Insurance		2,658				2,349				1,907				1,897				2,063
Other		5,719				7,716				5,148				5,340				4,422
Total Noninterest Income		42,158				43,551				42,574				41,378				44,431
Noninterest Expense
Salaries and Benefits		57,769				59,924				59,434				56,447				56,161
Net Occupancy		9,930				9,826				9,028				3,079				5,047
Net Equipment		9,543				9,153				9,105				8,924				8,796
Data Processing		4,607				4,560				4,696				4,722				4,557
Professional Fees		3,542				3,258				3,427				2,948				3,114
FDIC Insurance		1,590				1,502				1,619				1,594				1,669
Other		15,958				15,651				14,369				18,805				17,183
Total Noninterest Expense		102,939				103,874				101,678				96,519				96,527
Income Before Provision for Income Taxes		74,621				70,440				76,984				82,078				87,518
Provision for Income Taxes		17,759				15,606				13,147				20,025				19,985
Net Income	$	56,862			$	54,834			$	63,837			$	62,053			$	67,533
Preferred Stock Dividends		1,969				1,969				1,969				1,006				-
Net Income Available to Common Shareholders	$	54,893			$	52,865			$	61,868			$	61,047			$	67,533

Basic Earnings Per Common Share	$	1.38			$	1.33			$	1.56			$	1.53			$	1.69
Diluted Earnings Per Common Share	$	1.38			$	1.32			$	1.55			$	1.52			$	1.68

Balance Sheet Totals
Loans and Leases	$	12,951,573			$	12,544,492			$	12,259,076			$	12,072,750			$	12,041,378
Total Assets		23,232,699				23,000,317				22,784,941				22,965,383				22,672,183
Total Deposits		21,025,681				20,716,287				20,360,108				20,493,678				20,169,709
Total Shareholders' Equity		1,348,746				1,448,885				1,611,611				1,597,109				1,583,531

Performance Ratios
Return on Average Assets		1.00		%		0.97		%		1.12		%		1.07		%		1.23		%
Return on Average Shareholders' Equity		16.40				14.18				15.92				15.41				19.17
Return on Average Common Equity		18.19				15.44				17.40				17.08				19.61
Efficiency Ratio ¹		58.80				61.53				60.18				57.38				57.47
Net Interest Margin ²		2.47				2.34				2.34				2.32				2.37

¹ Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
² Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.

Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends														Table 15
	Five Months Ended				Year Ended
(dollars in millions; jobs in thousands)	May 31, 2022				December 31, 2021						December 31, 2020
Hawaii Economic Trends
State General Fund Revenues¹	$	4,366.5	33.7	%	$	8,137.9			26.9	%	$	6,415.1		(12.3	)	%
General Excise and Use Tax Revenue¹		1,751.8	25.5			3,604.3			18.6			3,038.8		(15.6	)
Jobs ²		647.6				642.6						594.4

									May 31,		December 31,
									2022		2021			2020
Unemployment, seasonally adjusted³
Statewide									4.2	%		4.3	%	9.8		%
Honolulu County									4.0			4.0		8.8
Hawaii County									4.5			4.1		9.2
Maui County									4.8			5.2		13.8
Kauai County									4.7			5.9		13.5

					June 30,				December 31,
(percentage change, except months of inventory)					2022				2021		2020			2019
Housing Trends (Single Family Oahu) ⁴
Median Home Price						17.0		%	19.3	%		5.2	%	(0.1	)	%
Home Sales Volume (units)						(8.8	)	%	17.9	%		2.3	%	3.9		%
Months of Inventory						1.5			0.8			1.4		2.5

					Monthly Visitor Arrivals,						Percentage Change
(in thousands)					Not Seasonally Adjusted						from Previous Year
Tourism ⁵
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									753.7					219.6
November 30, 2021									613.4					233.8
October 31, 2021									550.8					618.2
September 30, 2021									505.9					2,647.9
August 31, 2021									722.4					2,993.0
July 31, 2021									879.6					3,798.4
June 30, 2021									791.1					4,534.7
May 31, 2021									629.7					6,807.4
April 30, 2021									484.1					10,506.3
March 31, 2021									439.8					1.1
February 28, 2021									235.3					(71.6	)
January 31, 2021									172.0					(80.1	)
December 31, 2020									235.8					(75.2	)
November 30, 2020									183.8					(77.3	)
October 31, 2020									76.7					(90.4	)
September 30, 2020									18.4					(97.5	)
August 31, 2020									23.4					(97.5	)
July 31, 2020									22.6					(97.7	)
June 30, 2020									17.1					(98.2	)
May 31, 2020									9.1					(98.9	)
April 30, 2020									4.6					(99.5	)
March 31, 2020									434.9					(53.7	)
February 29, 2020									828.1					5.8
January 31, 2020									862.6					5.1

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

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Bank of Hawaii Corporation Second Quarter 2022 Financial Results

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