Business Wire | Apr 26, 2021 06:48AM EDT

Bank of Hawaii Corporation First Quarter 2021 Financial Results

Apr. 26, 2021

HONOLULU--(BUSINESS WIRE)--Apr. 26, 2021--Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $1.50 for the first quarter of 2021, compared with diluted earnings per share of $1.06 in the previous quarter and $0.87 in the same quarter last year. Net income for the first quarter of 2021 was $59.9 million compared with net income of $42.3 million in the fourth quarter of 2020 and $34.7 million in the first quarter of 2020.

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"We are pleased with our financial performance during the first quarter of 2021," said Peter Ho, Chairman, President, and CEO. "Our balance sheet remains strong with deposit balances and total assets reaching new record highs, solid asset quality, and high levels of liquidity and capital."

The return on average assets for the first quarter of 2021 was 1.15 percent compared with 0.83 percent during the previous quarter and 0.77 percent in the same quarter last year. The return on average equity for the first quarter of 2021 was 17.65 percent compared with 12.26 percent during the previous quarter and 10.64 percent in the same quarter last year.

Financial Highlights

Net interest income, on a taxable-equivalent basis, for the first quarter of 2021 was $120.8 million, an increase of $1.0 million from $119.8 million in the fourth quarter of 2020 and down $5.5 million from $126.3 million in the first quarter of 2020. The net interest margin was 2.43 percent in the first quarter of 2021, a decrease of 5 basis points from 2.48 percent the previous quarter and 53 basis points from 2.96 percent in the same quarter last year. Net interest income in the fourth quarter of 2020 included a charge of $3.0 million related to an impairment in the residual value of a leveraged lease which had a negative impact of 6 basis points on the net interest margin. The decrease in the net interest margin is largely due to higher levels of liquidity from continued strong deposit growth and lower interest rates. Analyses of changes in net interest income are included in Tables 8a and 8b.

Results for the first quarter of 2021 included a negative provision for credit losses of $14.3 million compared with a provision for credit losses of $15.2 million in the previous quarter and $33.6 million in the same quarter last year.

Noninterest income was $43.0 million in the first quarter of 2021 compared with noninterest income of $45.3 million in the fourth quarter of 2020 and $46.1 million in the first quarter of 2020. The decrease in noninterest income during the first quarter of 2021 compared with the prior quarter is largely due to a decrease in customer derivative program and mortgage banking income. The decrease in noninterest income compared to the first quarter of 2020 is largely due to a decrease in customer derivative program income and lower service charges on deposit accounts.

Noninterest expense was $98.9 million in the first quarter of 2021 compared with noninterest expense of $98.7 million in the fourth quarter of 2020 and $96.3 million in the first quarter of 2020. Noninterest expense in the first quarter of 2021 included seasonal payroll expenses of approximately $2.1 million, charges related to the rollout of contactless cards of $1.9 million, and separation expenses of $1.8 million. Noninterest expense in the first quarter of 2021 also included the restoration of corporate incentives that were eliminated in the first quarter of 2020. Noninterest expense in the fourth quarter of 2020 included $6.1 million in charges related to the decision to permanently close twelve branches and reduce the current number of cash-only ATMs. Noninterest expense in the fourth quarter of 2020 also included a charge of $0.8 million related to the true-up of amortization on an investment. Noninterest expense in the first quarter of 2020 included seasonal payroll expenses of approximately $3.1 million and separation expenses of $4.7 million that were partially offset by the elimination of corporate incentive accruals. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The efficiency ratio during the first quarter of 2021 was 60.45 percent compared with 59.88 percent in the previous quarter and 55.96 percent during the same quarter last year.

The effective tax rate for the first quarter of 2021 was 24.09 percent compared with 16.87 percent in the previous quarter and 17.68 percent during the same quarter in 2020. The increase in the effective tax rate for the first quarter of 2021 was primarily due to higher pretax book income in the first quarter of 2021. The fourth quarter of 2020 included a return to provision adjustment of $1.6 million. There were no significant items impacting the tax rate during the first quarter of 2020.

The Company's business segments are defined as Consumer Banking, Commercial Banking, and Treasury & Other. Results for the business segments are determined based on the Company's internal financial management reporting process and organizational structure. Selected financial information is included in Tables 13.

Asset Quality

The Company's overall asset quality remained stable during the first quarter of 2021. Total non-performing assets were $17.9 million at March 31, 2021, down from $18.5 million at December 31, 2020 and from $20.6 million at March 31, 2020. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.15 percent at the end of the first quarter of 2021, compared with 0.15 percent at the end of the fourth quarter of 2020 and 0.18 percent at the end of the first quarter of 2020.

Bank of Hawaii Corporation First Quarter 2021 Financial Results Page 3

Accruing loans and leases past due 90 days or more were $10.4 million at March 31, 2021 compared with $10.5 million at December 31, 2020 and $8.5 million at March 31, 2020. Restructured loans on accrual status and not past due 90 days or more were $74.2 million at March 31, 2021 compared with $68.1 million at December 31, 2020 and $61.4 million at March 31, 2020. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loan and lease charge-offs during the first quarter of 2021 were $2.9 million or 0.10 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $6.3 million partially offset by recoveries of $3.4 million. Net charge-offs during the fourth quarter of 2020 were a net recovery of $0.3 million and were comprised of charge-offs of $3.2 million fully offset by recoveries of $3.5 million. Net charge-offs during the first quarter of 2020 were $3.7 million or 0.14 percent annualized of total average loans and leases outstanding and were comprised of $7.2 million of charge-offs partially offset by recoveries of $3.4 million.

The allowance for credit losses on loans and leases was $198.3 million at March 31, 2021, a decrease from $216.3 million at December 31, 2020 and an increase from $138.2 million at March 31, 2020. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.63 percent at March 31, 2021, down from 1.81 percent at December 31, 2020 and up from 1.22 percent at March 31, 2020. The reserve for unfunded commitments was $3.0 million at March 31, 2021, a slight increase from $2.4 million at the end of the prior quarter and down from $3.3 million at the end of the same quarter in 2020. Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets increased to a new record of $21.9 billion at March 31, 2021, compared with total assets of $20.6 billion at December 31, 2020 and $18.5 billion at March 31, 2020. Average total assets were $21.2 billion during the first quarter of 2021, an increase from $20.4 billion during the fourth quarter of 2020 and $18.2 billion in the first quarter of 2020.

The investment securities portfolio was $7.5 billion at March 31, 2021, up from $7.1 billion at December 31, 2020 and from $5.7 billion at March 31, 2020 due to growth in deposits that continued to outpace loan growth. The portfolio remains largely comprised of securities issued by U.S. government agencies and includes $4.0 billion in securities available-for-sale and $3.5 billion in securities held-to-maturity at March 31, 2021. The securities portfolio at December 31, 2020 included $3.8 billion in securities available-for-sale and $3.3 billion in securities held-to-maturity. The securities portfolio at March 31, 2020 included $2.7 billion in securities available-for-sale and $3.0 billion in securities held-to-maturity.

Total loans and leases were $12.1 billion at March 31, 2021, an increase of 1.7 percent from total loans and leases of $11.9 billion at December 31, 2020 and up 6.9 percent from $11.4 billion at March 31, 2020. Average total loans and leases were $12.0 billion during the first quarter of 2021, an increase from average total loans and leases of $11.8 billion during the fourth quarter of 2020 and $11.1 billion during the first quarter of 2020.

The commercial loan portfolio was $5.3 billion at the end of March 31, 2021, an increase of $158.7 million or 3.1 percent from $5.1 billion at the end of the fourth quarter of 2020 and up $728.8 million or 16.1 percent from $4.5 billion at the end of the first quarter of 2020. Consumer loans were $6.9 billion at March 31, 2021, an increase of $42.0 million or 0.6 percent from $6.8 billion at the end of the fourth quarter of 2020 and up $59.1 million or 0.9 percent from $6.8 billion at the end of the first quarter of 2020. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $19.6 billion at March 31, 2021, an increase of 7.4 percent from total deposits of $18.2 billion at December 31, 2020 and up 21.8 percent from total deposits of $16.1 billion at March 31, 2020. Average total deposits were $18.7 billion during the first quarter of 2021, an increase from $17.8 billion during the fourth quarter of 2020 and from $15.8 billion during first quarter of 2020.

Consumer deposits were $9.7 billion at March 31, 2021, an increase of $399.0 million or 4.3 percent from $9.3 billion at the end of the fourth quarter of 2020 and an increase of $1.5 billion or 17.5 percent from $8.3 billion at the end of the first quarter of 2020. Commercial deposits were $8.2 billion at March 31, 2021, an increase of $938.3 million or 12.8 percent from $7.3 billion at the end of the fourth quarter of 2020 and an increase of $1.9 billion or 29.6 percent from $6.4 billion at the end of the first quarter of 2020. Other deposits, including public funds, were $1.6 billion at March 31, 2021, an increase of $7.8 million or 0.5 percent from $1.6 billion at the end of the fourth quarter of 2020 and an increase of $166.5 million or 11.9 percent from $1.4 billion at the end of the first quarter of 2020. Deposit balances are summarized in Tables 7 and 10.

Total shareholders' equity was $1.4 billion at March 31, 2021, a decrease of $14.3 million from December 31, 2020, and an increase of $32.3 million from March 31, 2020. In the first quarter of 2021 there were no repurchases under the share repurchase program. The Tier 1 Capital Ratio was 12.35 percent at March 31, 2021 compared with 12.06 percent at December 31, 2020 and 11.81 percent at March 31, 2020. The Tier 1 Leverage Ratio at March 31, 2021 was 6.61 percent compared with 6.71 percent at December 31, 2020 and 7.12 percent at March 30, 2020. The decrease in the Tier 1 Leverage ratio is due to balance sheet growth related to the significant increase in customer deposits.

The Company's Board of Directors declared a quarterly cash dividend of $0.67 per share on the Company's outstanding shares. The dividend will be payable on June 14, 2021 to shareholders of record at the close of business on May 28, 2021.

Conference Call Information

The Company will review its first quarter financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. The webcast link is https://edge.media-server.com/mmc/p/xbnzsss3. The toll-free number for the teleconference is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code "Bank of Hawaii" to access the call. A replay of the conference call will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, April 26, 2021. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the conference ID 8037629 when prompted. In addition, the replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

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

Bank of Hawaii Corporation andSubsidiariesFinancial Highlights Table 1 Three Months Ended

March 31, December 31, March 31,

(dollars in thousands, except 2021 2020 2020per share amounts)For the Period:Operating ResultsNet Interest Income $ 120,569 $ 119,499 $ 125,966

Provision for Credit Losses (14,300 ) 15,200 33,600

Total Noninterest Income 42,970 45,258 46,149

Total Noninterest Expense 98,865 98,654 96,312

Net Income 59,949 42,314 34,742

Basic Earnings Per Share 1.51 1.06 0.88

Diluted Earnings Per Share 1.50 1.06 0.87

Dividends Declared Per Share 0.67 0.67 0.67

Performance RatiosReturn on Average Assets 1.15 % 0.83 % 0.77 %

Return on Average Shareholders' 17.65 12.26 10.64EquityEfficiency Ratio ^1 60.45 59.88 55.96

Net Interest Margin ^2 2.43 2.48 2.96

Dividend Payout Ratio ^3 44.37 63.21 76.14

Average Shareholders' Equity to 6.51 6.74 7.21Average Assets Average BalancesAverage Loans and Leases $ 11,952,587 $ 11,835,929 $ 11,060,707

Average Assets 21,150,670 20,382,633 18,222,602

Average Deposits 18,665,222 17,819,116 15,817,745

Average Shareholders' Equity 1,377,272 1,372,971 1,313,848

Per Share of Common StockBook Value $ 33.67 $ 34.26 $ 33.20

Tangible Book Value 32.89 33.47 32.41

Market ValueClosing 89.49 76.62 54.91

High 99.10 80.38 95.53

Low 75.65 49.25 46.70

March 31, December 31, March 31,

2021 2020 2020

As of Period End:Balance Sheet TotalsLoans and Leases $ 12,140,703 $ 11,940,020 $ 11,352,780

Total Assets 21,947,271 20,603,651 18,542,233

Total Deposits 19,556,651 18,211,621 16,055,361

Other Debt 60,459 60,481 60,545

Total Shareholders' Equity 1,360,221 1,374,507 1,327,929

Asset QualityNon-Performing Assets $ 17,883 $ 18,481 $ 20,604

Allowance for Credit Losses 198,343 216,252 138,150

Allowance to Loans and Leases 1.63 % 1.81 % 1.22 %Outstanding Capital Ratios ^4Common Equity Tier 1 Capital 12.35 % 12.06 % 11.81 %RatioTier 1 Capital Ratio 12.35 12.06 11.81

Total Capital Ratio 13.61 13.31 13.06

Tier 1 Leverage Ratio 6.61 6.71 7.12

Total Shareholders' Equity to 6.20 6.67 7.16Total AssetsTangible Common Equity to 6.06 6.53 7.00Tangible Assets ^5Tangible Common Equity to 11.78 11.89 11.85Risk-Weighted Assets^ 5 Non-Financial DataFull-Time Equivalent Employees 2,058 2,022 2,094

Branches 63 65 67

ATMs 361 357 382

1

Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).2

Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.3

Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.4

Regulatory capital ratios as of March 31, 2021 are preliminary. CET 1 / Tier 1 Capital Ratios revised from 11.85%, Total Capital Ratio revised from 13.10%, and Tier 1 Leverage Ratio revised from 7.14% as of March 31, 2020.5

Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 "Reconciliation of Non-GAAP Financial Measures."^ Efficiency ratio is defined as noninterest expense divided by total revenue1 (net interest income and total noninterest income).

^ Net interest margin is defined as net interest income, on a2 taxable-equivalent basis, as a percentage of average earning assets.

^ Dividend payout ratio is defined as dividends declared per share divided by3 basic earnings per share.

^ Regulatory capital ratios as of March 31, 2021 are preliminary. CET 1 / Tier4 1 Capital Ratios revised from 11.85%, Total Capital Ratio revised from 13.10%, and Tier 1 Leverage Ratio revised from 7.14% as of March 31, 2020.^ Tangible common equity to tangible assets and tangible common equity to5 risk-weighted assets are Non-GAAP financial measures. See Table 2 "Reconciliation of Non-GAAP Financial Measures."Bank of Hawaii Corporation and SubsidiariesReconciliation of Non-GAAP Financial MeasuresTable 2

March 31,

December 31,

March 31,

(dollars in thousands)2021

2020

2020

Total Shareholders' Equity$

1,360,221

$

1,374,507

$

1,327,929

Less:Goodwill31,517

31,517

31,517

Tangible Common Equity$

1,328,704

$

1,342,990

$

1,296,412

Total Assets$

21,947,271

$

20,603,651

$

18,542,233

Less:Goodwill31,517

31,517

31,517

Tangible Assets$

21,915,754

$

20,572,134

$

18,510,716

Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements$

11,275,565

$

11,295,077

$

10,944,260

Total Shareholders' Equity to Total Assets6.20

%

6.67

%

7.16

%

Tangible Common Equity to Tangible Assets (Non-GAAP)6.06

%

6.53

%

7.00

%

Tier 1 Capital Ratio12.35

%

12.06

%

11.81

%

Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)11.78

%

11.89

%

11.85

%

Bank of Hawaii Corporationand SubsidiariesReconciliation of Non-GAAP Table 2Financial Measures March 31, December 31, March 31,

(dollars in thousands) 2021 2020 2020

Total Shareholders' Equity $ 1,360,221 $ 1,374,507 $ 1,327,929

Less:Goodwill 31,517 31,517 31,517

Tangible Common Equity $ 1,328,704 $ 1,342,990 $ 1,296,412

Total Assets $ 21,947,271 $ 20,603,651 $ 18,542,233

Less:Goodwill 31,517 31,517 31,517

Tangible Assets $ 21,915,754 $ 20,572,134 $ 18,510,716

Risk-Weighted Assets,determined in accordance with $ 11,275,565 $ 11,295,077 $ 10,944,260 prescribed regulatoryrequirements Total Shareholders' Equity to 6.20 % 6.67 % 7.16 %Total AssetsTangible Common Equity to 6.06 % 6.53 % 7.00 %Tangible Assets (Non-GAAP) Tier 1 Capital Ratio^ 12.35 % 12.06 % 11.81 %

Tangible Common Equity to 11.78 % 11.89 % 11.85 %Risk-Weighted Assets(Non-GAAP)Note: Risk-Weighted Assets and Regulatory capital ratios as of March 31, 2021 are preliminary. Risk-Weighted Assets revised from $10,941,909 and Tier 1 Capital Ratio revised from 11.85% as of March 31, 2020.Note: Risk-Weighted Assets and Regulatory capital ratios as of March 31, 2021are preliminary. Risk-Weighted Assets revised from $10,941,909 and Tier 1Capital Ratio revised from 11.85% as of March 31, 2020.Bank of Hawaii Corporation and SubsidiariesConsolidated Statements of IncomeTable 3Three Months Ended

March 31,

December 31,

March 31,

(dollars in thousands, except per share amounts)2021

2020

2020

Interest IncomeInterest and Fees on Loans and Leases$

99,299

$

98,471

$

108,210

Income on Investment SecuritiesAvailable-for-Sale15,837

15,449

16,711

Held-to-Maturity13,300

14,113

19,252

Deposits7

1

9

Funds Sold137

115

546

Other185

167

218

Total Interest Income128,765

128,316

144,946

Interest ExpenseDeposits4,329

4,861

14,260

Securities Sold Under Agreements to Repurchase3,533

3,614

4,025

Funds Purchased1

5

72

Short-Term Borrowings-

-

39

Other Debt333

337

584

Total Interest Expense8,196

8,817

18,980

Net Interest Income120,569

119,499

125,966

Provision for Credit Losses(14,300

)

15,200

33,600

Net Interest Income After Provision for Credit Losses134,869

104,299

92,366

Noninterest IncomeTrust and Asset Management11,278

11,239

10,915

Mortgage Banking5,862

6,851

2,695

Service Charges on Deposit Accounts6,128

6,335

7,451

Fees, Exchange, and Other Service Charges13,607

12,143

13,200

Investment Securities Gains (Losses), Net(1,203

)

(1,193

)

(970

)

Annuity and Insurance702

670

928

Bank-Owned Life Insurance1,917

2,353

1,580

Other4,679

6,860

10,350

Total Noninterest Income42,970

45,258

46,149

Noninterest ExpenseSalaries and Benefits56,251

50,200

54,463

Net Occupancy9,090

14,536

8,955

Net Equipment8,878

9,574

8,456

Data Processing6,322

4,604

4,788

Professional Fees3,406

3,174

3,208

FDIC Insurance1,654

1,484

1,456

Other13,264

15,082

14,986

Total Noninterest Expense98,865

98,654

96,312

Income Before Provision for Income Taxes78,974

50,903

42,203

Provision for Income Taxes19,025

8,589

7,461

Net Income$

59,949

$

42,314

$

34,742

Basic Earnings Per Share$

1.51

$

1.06

$

0.88

Diluted Earnings Per Share$

1.50

$

1.06

$

0.87

Dividends Declared Per Share$

0.67

$

0.67

$

0.67

Basic Weighted Average Shares39,827,590

39,773,851

39,681,611

Diluted Weighted Average Shares40,071,477

39,963,736

39,916,986

Bank of Hawaii Corporationand SubsidiariesConsolidated Statements of Table 3Income Three Months Ended

March 31, December 31, March 31,

(dollars in thousands, except 2021 2020 2020per share amounts)Interest IncomeInterest and Fees on Loans $ 99,299 $ 98,471 $ 108,210 and LeasesIncome on InvestmentSecuritiesAvailable-for-Sale 15,837 15,449 16,711

Held-to-Maturity 13,300 14,113 19,252

Deposits 7 1 9

Funds Sold 137 115 546

Other 185 167 218

Total Interest Income 128,765 128,316 144,946

Interest ExpenseDeposits 4,329 4,861 14,260

Securities Sold Under 3,533 3,614 4,025 Agreements to RepurchaseFunds Purchased 1 5 72

Short-Term Borrowings - - 39

Other Debt 333 337 584

Total Interest Expense 8,196 8,817 18,980

Net Interest Income 120,569 119,499 125,966

Provision for Credit Losses (14,300 ) 15,200 33,600

Net Interest Income After 134,869 104,299 92,366 Provision for Credit LossesNoninterest IncomeTrust and Asset Management 11,278 11,239 10,915

Mortgage Banking 5,862 6,851 2,695

Service Charges on Deposit 6,128 6,335 7,451 AccountsFees, Exchange, and Other 13,607 12,143 13,200 Service ChargesInvestment Securities Gains (1,203 ) (1,193 ) (970 )(Losses), NetAnnuity and Insurance 702 670 928

Bank-Owned Life Insurance 1,917 2,353 1,580

Other 4,679 6,860 10,350

Total Noninterest Income 42,970 45,258 46,149

Noninterest ExpenseSalaries and Benefits 56,251 50,200 54,463

Net Occupancy 9,090 14,536 8,955

Net Equipment 8,878 9,574 8,456

Data Processing 6,322 4,604 4,788

Professional Fees 3,406 3,174 3,208

FDIC Insurance 1,654 1,484 1,456

Other 13,264 15,082 14,986

Total Noninterest Expense 98,865 98,654 96,312

Income Before Provision for 78,974 50,903 42,203 Income TaxesProvision for Income Taxes 19,025 8,589 7,461

Net Income $ 59,949 $ 42,314 $ 34,742

Basic Earnings Per Share $ 1.51 $ 1.06 $ 0.88

Diluted Earnings Per Share $ 1.50 $ 1.06 $ 0.87

Dividends Declared Per Share $ 0.67 $ 0.67 $ 0.67

Basic Weighted Average Shares 39,827,590 39,773,851 39,681,611

Diluted Weighted Average 40,071,477 39,963,736 39,916,986 SharesBank of Hawaii Corporation and SubsidiariesConsolidated Statements of Comprehensive IncomeTable 4Three Months EndedMarch 31,

December 31,

March 31,

(dollars in thousands)2021

2020

2020

Net Income$

59,949

$

42,314

$

34,742

Other Comprehensive Income (Loss), Net of Tax:Net Unrealized Gains (Losses) on Investment Securities(50,050

)

(961

)

41,559

Defined Benefit Plans441

(5,616

)

374

Other Comprehensive Income (Loss)(49,609

)

(6,577

)

41,933

Comprehensive Income$

10,340

$

35,737

$

76,675

Bank of Hawaii Corporation and SubsidiariesConsolidated Statements of Comprehensive Table 4Income Three Months Ended March 31, December March 31, 31,

(dollars in thousands) 2021 2020 2020

Net Income $ 59,949 $ 42,314 $ 34,742

Other Comprehensive Income (Loss), Net ofTax:Net Unrealized Gains (Losses) on Investment (50,050 ) (961 ) 41,559SecuritiesDefined Benefit Plans 441 (5,616 ) 374

Other Comprehensive Income (Loss) (49,609 ) (6,577 ) 41,933

Comprehensive Income $ 10,340 $ 35,737 $ 76,675

Bank of Hawaii Corporation and SubsidiariesConsolidated Statements of ConditionTable 5

March 31,

December 31,

March 31,

(dollars in thousands)2021

2020

2020

AssetsInterest-Bearing Deposits in Other Banks$

4,506

$

1,646

$

6,346

Funds Sold1,101,631

333,022

96,898

Investment SecuritiesAvailable-for-Sale4,024,763

3,791,689

2,681,049

Held-to-Maturity (Fair Value of $3,477,346; $3,348,693; and $3,104,020)3,464,360

3,262,727

3,004,139

Loans Held for Sale18,320

82,565

20,789

Loans and Leases12,140,703

11,940,020

11,352,780

Allowance for Credit Losses(198,343

)

(216,252

)

(138,150

)

Net Loans and Leases11,942,360

11,723,768

11,214,630

Total Earning Assets20,555,940

19,195,417

17,023,851

Cash and Due from Banks286,717

279,420

453,465

Premises and Equipment, Net198,107

199,695

196,228

Operating Lease Right-of-Use Assets97,750

99,542

98,695

Accrued Interest Receivable47,917

49,303

46,996

Foreclosed Real Estate2,332

2,332

2,506

Mortgage Servicing Rights22,320

19,652

22,537

Goodwill31,517

31,517

31,517

Bank-Owned Life Insurance291,764

291,480

289,536

Other Assets412,907

435,293

376,902

Total Assets$

21,947,271

$

20,603,651

$

18,542,233

LiabilitiesDepositsNoninterest-Bearing Demand$

6,227,436

$

5,749,612

$

4,378,918

Interest-Bearing Demand4,379,243

4,040,733

3,261,101

Savings7,474,580

6,759,213

6,670,530

Time1,475,392

1,662,063

1,744,812

Total Deposits19,556,651

18,211,621

16,055,361

Funds Purchased-

-

75,000

Short-Term Borrowings-

-

75,000

Securities Sold Under Agreements to Repurchase600,490

600,590

603,206

Other Debt60,459

60,481

60,545

Operating Lease Liabilities105,820

107,412

106,180

Retirement Benefits Payable50,687

51,197

44,124

Accrued Interest Payable4,109

5,117

7,932

Taxes Payable and Deferred Taxes15,599

2,463

32,793

Other Liabilities193,235

190,263

154,163

Total Liabilities20,587,050

19,229,144

17,214,304

Shareholders' EquityCommon Stock ($.01 par value; authorized 500,000,000 shares;issued / outstanding: March 31, 2021 - 58,553,365 / 40,394,234;December 31, 2020 - 58,285,624 / 40,119,312;and March 31, 2020 - 58,251,725 / 39,996,510)580

580

579

Capital Surplus594,804

591,360

584,392

Accumulated Other Comprehensive Income (Loss)(41,787

)

7,822

10,821

Retained Earnings1,844,057

1,811,979

1,773,607

Treasury Stock, at Cost (Shares: March 31, 2021 - 18,159,131;December 31, 2020 - 18,166,312; and March 31, 2020 - 18,255,215)(1,037,433

)

(1,037,234

)

(1,041,470

)

Total Shareholders' Equity1,360,221

1,374,507

1,327,929

Total Liabilities and Shareholders' Equity$

21,947,271

$

20,603,651

$

18,542,233

Bank of Hawaii Corporationand SubsidiariesConsolidated Statements of Table 5Condition March 31, December 31, March 31,

(dollars in thousands) 2021 2020 2020

AssetsInterest-Bearing Deposits in $ 4,506 $ 1,646 $ 6,346 Other BanksFunds Sold 1,101,631 333,022 96,898

Investment SecuritiesAvailable-for-Sale 4,024,763 3,791,689 2,681,049

Held-to-Maturity (Fair Value 3,464,360 3,262,727 3,004,139 of $3,477,346; $3,348,693;and $3,104,020)Loans Held for Sale 18,320 82,565 20,789

Loans and Leases 12,140,703 11,940,020 11,352,780

Allowance for Credit Losses (198,343 ) (216,252 ) (138,150 )

Net Loans and Leases 11,942,360 11,723,768 11,214,630

Total Earning Assets 20,555,940 19,195,417 17,023,851

Cash and Due from Banks 286,717 279,420 453,465

Premises and Equipment, Net 198,107 199,695 196,228

Operating Lease Right-of-Use 97,750 99,542 98,695 AssetsAccrued Interest Receivable 47,917 49,303 46,996

Foreclosed Real Estate 2,332 2,332 2,506

Mortgage Servicing Rights 22,320 19,652 22,537

Goodwill 31,517 31,517 31,517

Bank-Owned Life Insurance 291,764 291,480 289,536

Other Assets 412,907 435,293 376,902

Total Assets $ 21,947,271 $ 20,603,651 $ 18,542,233

LiabilitiesDepositsNoninterest-Bearing Demand $ 6,227,436 $ 5,749,612 $ 4,378,918

Interest-Bearing Demand 4,379,243 4,040,733 3,261,101

Savings 7,474,580 6,759,213 6,670,530

Time 1,475,392 1,662,063 1,744,812

Total Deposits 19,556,651 18,211,621 16,055,361

Funds Purchased - - 75,000

Short-Term Borrowings - - 75,000

Securities Sold Under 600,490 600,590 603,206 Agreements to RepurchaseOther Debt 60,459 60,481 60,545

Operating Lease Liabilities 105,820 107,412 106,180

Retirement Benefits Payable 50,687 51,197 44,124

Accrued Interest Payable 4,109 5,117 7,932

Taxes Payable and Deferred 15,599 2,463 32,793 TaxesOther Liabilities 193,235 190,263 154,163

Total Liabilities 20,587,050 19,229,144 17,214,304

Shareholders' EquityCommon Stock ($.01 par value;authorized 500,000,000shares;issued / outstanding: March31, 2021 - 58,553,365 /40,394,234;December 31, 2020 -58,285,624 / 40,119,312;and March 31, 2020 - 580 580 579 58,251,725 / 39,996,510)Capital Surplus 594,804 591,360 584,392

Accumulated Other (41,787 ) 7,822 10,821 Comprehensive Income (Loss)Retained Earnings 1,844,057 1,811,979 1,773,607

Treasury Stock, at Cost(Shares: March 31, 2021 -18,159,131;December 31, 2020 - (1,037,433 ) (1,037,234 ) (1,041,470 )18,166,312; and March 31,2020 - 18,255,215)Total Shareholders' Equity 1,360,221 1,374,507 1,327,929

Total Liabilities and $ 21,947,271 $ 20,603,651 $ 18,542,233 Shareholders' EquityBank of Hawaii Corporation and SubsidiariesConsolidated Statements of Shareholders' EquityTable 6Accum.

Other

Compre-

hensive

Common Shares

Common

Capital

Income

Retained

Treasury

(dollars in thousands)Outstanding

Stock

Surplus

(Loss)

Earnings

Stock

Total

Balance as of December 31, 202040,119,312

$

580

$

591,360

$

7,822

$

1,811,979

$

(1,037,234

)

$

1,374,507

Net Income-

-

-

-

59,949

-

59,949

Other Comprehensive Loss-

-

-

(49,609

)

-

-

(49,609

)

Share-Based Compensation-

-

2,780

-

-

-

2,780

Common Stock Issued under Purchase and EquityCompensation Plans310,905

-

664

-

(845

)

2,990

2,809

Common Stock Repurchased(35,983

)

-

-

-

-

(3,189

)

(3,189

)

Cash Dividends Declared ($0.67 per share)-

-

-

-

(27,026

)

-

(27,026

)

Balance as of March 31, 202140,394,234

$

580

$

594,804

$

(41,787

)

$

1,844,057

$

(1,037,433

)

$

1,360,221

Balance as of December 31, 201940,039,695

$

579

$

582,566

$

(31,112

)

$

1,761,415

$

(1,026,616

)

$

1,286,832

Net Income-

-

-

-

34,742

-

34,742

Other Comprehensive Income-

-

-

41,933

-

-

41,933

Cumulative Change in Accounting Principle-

-

-

-

3,632

-

3,632

Share-Based Compensation-

-

1,497

-

-

-

1,497

Common Stock Issued under Purchase and EquityCompensation Plans154,091

-

329

-

653

2,779

3,761

Common Stock Repurchased(197,276

)

-

-

-

-

(17,633

)

(17,633

)

Cash Dividends Declared ($0.67 per share)-

-

-

-

(26,835

)

-

(26,835

)

Balance as of March 31, 202039,996,510

$

579

$

584,392

$

10,821

$

1,773,607

$

(1,041,470

)

$

1,327,929

Bank of Hawaii Corporation andSubsidiariesConsolidated Statements of Table 6Shareholders' Equity Accum.

Other

Compre-

hensive

Common Common Capital Income Retained Treasury Shares

(dollars in Outstanding Stock Surplus (Loss) Earnings Stock Totalthousands)Balance as of 40,119,312 $ 580 $ 591,360 $ 7,822 $ 1,811,979 $ (1,037,234 ) $ 1,374,507 December 31,2020Net Income - - - - 59,949 - 59,949

Other - - - (49,609 ) - - (49,609 )ComprehensiveLossShare-Based - - 2,780 - - - 2,780 CompensationCommon StockIssued underPurchase andEquityCompensation 310,905 - 664 - (845 ) 2,990 2,809 PlansCommon Stock (35,983 ) - - - - (3,189 ) (3,189 )RepurchasedCashDividends - - - - (27,026 ) - (27,026 )Declared($0.67 pershare)Balance as of 40,394,234 $ 580 $ 594,804 $ (41,787 ) $ 1,844,057 $ (1,037,433 ) $ 1,360,221 March 31,2021 Balance as of 40,039,695 $ 579 $ 582,566 $ (31,112 ) $ 1,761,415 $ (1,026,616 ) $ 1,286,832 December 31,2019Net Income - - - - 34,742 - 34,742

Other - - - 41,933 - - 41,933 ComprehensiveIncomeCumulativeChange in - - - - 3,632 - 3,632 AccountingPrincipleShare-Based - - 1,497 - - - 1,497 CompensationCommon StockIssued underPurchase andEquityCompensation 154,091 - 329 - 653 2,779 3,761 PlansCommon Stock (197,276 ) - - - - (17,633 ) (17,633 )RepurchasedCashDividends - - - - (26,835 ) - (26,835 )Declared($0.67 pershare)Balance as of 39,996,510 $ 579 $ 584,392 $ 10,821 $ 1,773,607 $ (1,041,470 ) $ 1,327,929 March 31,2020Bank of Hawaii Corporation and SubsidiariesAverage Balances and Interest Rates - Taxable-Equivalent BasisTable 7Three Months Ended

Three Months Ended

Three Months Ended

March 31, 2021

December 31, 2020

March 31, 2020

Average

Income/

Yield/

Average

Income/

Yield/

Average

Income/

Yield/

(dollars in millions)Balance

Expense

Rate

Balance

Expense

Rate

Balance

Expense

Rate

Earning AssetsInterest-Bearing Deposits in Other Banks$

3.2

$

-

0.93

%

$

2.2

$

-

0.16

%

$

1.4

$

-

2.36

%

Funds Sold550.6

0.1

0.10

451.6

0.1

0.10

152.8

0.6

1.41

Investment SecuritiesAvailable-for-SaleTaxable4,007.9

15.8

1.57

3,605.8

15.3

1.69

2,702.4

16.4

2.43

Non-Taxable12.3

0.1

4.27

20.2

0.2

4.33

32.4

0.4

4.40

Held-to-MaturityTaxable3,385.8

13.1

1.55

3,246.7

13.9

1.71

3,036.2

18.9

2.50

Non-Taxable38.1

0.2

2.55

47.1

0.3

2.66

54.7

0.4

2.67

Total Investment Securities7,444.1

29.2

1.57

6,919.8

29.7

1.71

5,825.7

36.1

2.48

Loans Held for Sale26.2

0.2

2.76

15.1

0.1

2.98

23.2

0.2

3.54

Loans and Leases 1Commercial and Industrial1,904.5

14.3

3.05

1,897.4

14.0

2.95

1,409.3

13.2

3.77

Commercial Mortgage2,846.0

21.3

3.04

2,768.0

21.7

3.12

2,549.4

25.1

3.96

Construction264.1

2.3

3.48

257.4

2.3

3.62

213.2

2.5

4.65

Commercial Lease Financing106.4

0.4

1.43

112.2

(2.5

)

(9.07

)

111.4

0.5

1.95

Residential Mortgage4,146.6

35.9

3.46

4,089.7

36.4

3.57

3,895.4

36.9

3.79

Home Equity1,594.1

12.6

3.20

1,600.9

13.2

3.28

1,680.2

15.2

3.64

Automobile708.3

6.1

3.51

706.1

6.4

3.59

721.0

6.4

3.56

Other 2382.6

6.4

6.75

404.2

7.0

6.85

480.8

8.4

7.06

Total Loans and Leases11,952.6

99.3

3.35

11,835.9

98.5

3.32

11,060.7

108.2

3.93

Other33.4

0.2

2.21

33.3

0.2

2.01

34.3

0.2

2.54

Total Earning Assets 320,010.1

129.0

2.60

19,257.9

128.6

2.66

17,098.1

145.3

3.41

Cash and Due from Banks270.7

240.4

278.8

Other Assets869.9

884.3

845.7

Total Assets$

21,150.7

$

20,382.6

$

18,222.6

Interest-Bearing LiabilitiesInterest-Bearing DepositsDemand$

4,186.4

0.6

0.06

$

3,899.5

0.6

0.06

$

3,110.0

1.0

0.12

Savings7,016.6

1.5

0.09

6,728.8

1.4

0.08

6,502.4

7.1

0.44

Time1,630.0

2.2

0.56

1,696.0

2.9

0.68

1,743.0

6.2

1.43

Total Interest-Bearing Deposits12,833.0

4.3

0.14

12,324.3

4.9

0.16

11,355.4

14.3

0.51

Short-Term Borrowings2.4

-

0.09

19.2

-

0.10

57.8

0.1

0.76

Securities Sold Under Agreements to Repurchase600.5

3.6

2.35

600.9

3.6

2.35

604.1

4.0

2.64

Other Debt60.5

0.3

2.22

60.5

0.3

2.22

66.9

0.6

3.51

Total Interest-Bearing Liabilities13,496.4

8.2

0.24

13,004.9

8.8

0.27

12,084.2

19.0

0.63

Net Interest Income$

120.8

$

119.8

$

126.3

Interest Rate Spread2.36

%

2.39

%

2.78

%

Net Interest Margin2.43

%

2.48

%

2.96

%

Noninterest-Bearing Demand Deposits5,832.2

5,494.8

4,462.3

Other Liabilities444.8

509.9

362.3

Shareholders' Equity1,377.3

1,373.0

1,313.8

Total Liabilities and Shareholders' Equity$

21,150.7

$

20,382.6

$

18,222.6

Bank of Hawaii Corporation andSubsidiariesAverage Balances and Interest Rates - TableTaxable-Equivalent Basis 7 Three Months Ended Three Months Ended Three Months Ended

March 31, 2021 December 31, 2020 March 31, 2020

Average Income/ Yield Average Income/ Yield Average Income/ Yield / / /

(dollars in Balance Expense Rate Balance Expense Rate Balance Expense Ratemillions)Earning AssetsInterest-Bearing $ 3.2 $ - 0.93 % $ 2.2 $ - 0.16 % $ 1.4 $ - 2.36 %Deposits in OtherBanksFunds Sold 550.6 0.1 0.10 451.6 0.1 0.10 152.8 0.6 1.41

InvestmentSecuritiesAvailable-for-SaleTaxable 4,007.9 15.8 1.57 3,605.8 15.3 1.69 2,702.4 16.4 2.43

Non-Taxable 12.3 0.1 4.27 20.2 0.2 4.33 32.4 0.4 4.40

Held-to-MaturityTaxable 3,385.8 13.1 1.55 3,246.7 13.9 1.71 3,036.2 18.9 2.50

Non-Taxable 38.1 0.2 2.55 47.1 0.3 2.66 54.7 0.4 2.67

Total Investment 7,444.1 29.2 1.57 6,919.8 29.7 1.71 5,825.7 36.1 2.48SecuritiesLoans Held for Sale 26.2 0.2 2.76 15.1 0.1 2.98 23.2 0.2 3.54

Loans and Leases ^1Commercial and 1,904.5 14.3 3.05 1,897.4 14.0 2.95 1,409.3 13.2 3.77IndustrialCommercial Mortgage 2,846.0 21.3 3.04 2,768.0 21.7 3.12 2,549.4 25.1 3.96

Construction 264.1 2.3 3.48 257.4 2.3 3.62 213.2 2.5 4.65

Commercial Lease 106.4 0.4 1.43 112.2 (2.5 ) (9.07 ) 111.4 0.5 1.95FinancingResidential 4,146.6 35.9 3.46 4,089.7 36.4 3.57 3,895.4 36.9 3.79MortgageHome Equity 1,594.1 12.6 3.20 1,600.9 13.2 3.28 1,680.2 15.2 3.64

Automobile 708.3 6.1 3.51 706.1 6.4 3.59 721.0 6.4 3.56

Other ^2 382.6 6.4 6.75 404.2 7.0 6.85 480.8 8.4 7.06

Total Loans and 11,952.6 99.3 3.35 11,835.9 98.5 3.32 11,060.7 108.2 3.93LeasesOther 33.4 0.2 2.21 33.3 0.2 2.01 34.3 0.2 2.54

Total Earning 20,010.1 129.0 2.60 19,257.9 128.6 2.66 17,098.1 145.3 3.41Assets ^3Cash and Due from 270.7 240.4 278.8BanksOther Assets 869.9 884.3 845.7

Total Assets $ 21,150.7 $ 20,382.6 $ 18,222.6

Interest-BearingLiabilitiesInterest-BearingDepositsDemand $ 4,186.4 0.6 0.06 $ 3,899.5 0.6 0.06 $ 3,110.0 1.0 0.12

Savings 7,016.6 1.5 0.09 6,728.8 1.4 0.08 6,502.4 7.1 0.44

Time 1,630.0 2.2 0.56 1,696.0 2.9 0.68 1,743.0 6.2 1.43

Total 12,833.0 4.3 0.14 12,324.3 4.9 0.16 11,355.4 14.3 0.51Interest-BearingDepositsShort-Term 2.4 - 0.09 19.2 - 0.10 57.8 0.1 0.76BorrowingsSecurities Sold 600.5 3.6 2.35 600.9 3.6 2.35 604.1 4.0 2.64Under Agreements toRepurchaseOther Debt 60.5 0.3 2.22 60.5 0.3 2.22 66.9 0.6 3.51

Total 13,496.4 8.2 0.24 13,004.9 8.8 0.27 12,084.2 19.0 0.63Interest-BearingLiabilitiesNet Interest Income $ 120.8 $ 119.8 $ 126.3

Interest Rate 2.36 % 2.39 % 2.78 %SpreadNet Interest Margin 2.43 % 2.48 % 2.96 %

Noninterest-Bearing 5,832.2 5,494.8 4,462.3Demand DepositsOther Liabilities 444.8 509.9 362.3

Shareholders' 1,377.3 1,373.0 1,313.8EquityTotal Liabilities $ 21,150.7 $ 20,382.6 $ 18,222.6and Shareholders'Equity1

Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

2

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

3

Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $252,000, $287,000, and $357,000 for the three months ended March 31, 2021, December 31, 2020, and March 31, 2020, respectively.

^ Non-performing loans and leases are included in the respective average loan1 and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

^ Comprised of other consumer revolving credit, installment, and consumer2 lease financing.

Interest income includes taxable-equivalent basis adjustments, based upon a^ federal statutory tax rate of 21%, of $252,000, $287,000, and $357,000 for3 the three months ended March 31, 2021, December 31, 2020, and March 31, 2020, respectively.

Bank of Hawaii Corporation and SubsidiariesAnalysis of Change in Net Interest Income - Taxable-Equivalent BasisTable 8aThree Months Ended March 31, 2021

Compared to December 31, 2020

(dollars in millions)Volume 1

Rate 1

Total

Change in Interest Income:Investment SecuritiesAvailable-for-SaleTaxable$

1.6

$

(1.1

)

$

0.5

Non-Taxable(0.1

)

-

(0.1

)

Held-to-MaturityTaxable0.6

(1.4

)

(0.8

)

Non-Taxable(0.1

)

-

(0.1

)

Total Investment Securities2.0

(2.5

)

(0.5

)

Loans Held for Sale0.1

-

0.1

Loans and LeasesCommercial and Industrial-

0.3

0.3

Commercial Mortgage0.4

(0.8

)

(0.4

)

Construction0.1

(0.1

)

-

Commercial Lease Financing0.1

2.8

2.9

Residential Mortgage0.5

(1.0

)

(0.5

)

Home Equity(0.1

)

(0.5

)

(0.6

)

Automobile-

(0.3

)

(0.3

)

Other 2(0.5

)

(0.1

)

(0.6

)

Total Loans and Leases0.5

0.3

0.8

Total Change in Interest Income2.6

(2.2

)

0.4

Change in Interest Expense:Interest-Bearing DepositsSavings-

0.1

0.1

Time(0.1

)

(0.6

)

(0.7

)

Total Interest-Bearing Deposits(0.1

)

(0.5

)

(0.6

)

Total Change in Interest Expense(0.1

)

(0.5

)

(0.6

)

Change in Net Interest Income$

2.7

$

(1.7

)

$

1.0

Bank of Hawaii Corporation and SubsidiariesAnalysis of Change in Net Interest Income - Table 8aTaxable-Equivalent Basis Three Months Ended March 31, 2021

Compared to December 31, 2020

Volume ^ Rate ^1 Total(dollars in millions) 1

Change in Interest Income:Investment SecuritiesAvailable-for-SaleTaxable $ 1.6 $ (1.1 ) $ 0.5

Non-Taxable (0.1 ) - (0.1 )

Held-to-MaturityTaxable 0.6 (1.4 ) (0.8 )

Non-Taxable (0.1 ) - (0.1 )

Total Investment Securities 2.0 (2.5 ) (0.5 )

Loans Held for Sale 0.1 - 0.1

Loans and LeasesCommercial and Industrial - 0.3 0.3

Commercial Mortgage 0.4 (0.8 ) (0.4 )

Construction 0.1 (0.1 ) -

Commercial Lease Financing 0.1 2.8 2.9

Residential Mortgage 0.5 (1.0 ) (0.5 )

Home Equity (0.1 ) (0.5 ) (0.6 )

Automobile - (0.3 ) (0.3 )

Other ^2 (0.5 ) (0.1 ) (0.6 )

Total Loans and Leases 0.5 0.3 0.8

Total Change in Interest Income 2.6 (2.2 ) 0.4

Change in Interest Expense:Interest-Bearing DepositsSavings - 0.1 0.1

Time (0.1 ) (0.6 ) (0.7 )

Total Interest-Bearing Deposits (0.1 ) (0.5 ) (0.6 )

Total Change in Interest Expense (0.1 ) (0.5 ) (0.6 )

Change in Net Interest Income $ 2.7 $ (1.7 ) $ 1.0

1

The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

2

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

^ The change in interest income and expense not solely due to changes in1 volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

^ Comprised of other consumer revolving credit, installment, and consumer2 lease financing.

Bank of Hawaii Corporation and SubsidiariesAnalysis of Change in Net Interest Income - Taxable-Equivalent BasisTable 8bThree Months Ended March 31, 2021Compared to March 31, 2020(dollars in millions)Volume 1Rate 1TotalChange in Interest Income:Funds Sold$

0.4

$

(0.9

)

$

(0.5

)

Investment SecuritiesAvailable-for-SaleTaxable6.4

(7.0

)

(0.6

)

Non-Taxable(0.2

)

(0.1

)

(0.3

)

Held-to-MaturityTaxable2.0

(7.8

)

(5.8

)

Non-Taxable(0.1

)

(0.1

)

(0.2

)

Total Investment Securities8.1

(15.0

)

(6.9

)

Loans and LeasesCommercial and Industrial3.9

(2.8

)

1.1

Commercial Mortgage2.6

(6.4

)

(3.8

)

Construction0.5

(0.7

)

(0.2

)

Commercial Lease Financing-

(0.1

)

(0.1

)

Residential Mortgage2.3

(3.3

)

(1.0

)

Home Equity(0.8

)

(1.8

)

(2.6

)

Automobile(0.2

)

(0.1

)

(0.3

)

Other 2(1.7

)

(0.3

)

(2.0

)

Total Loans and Leases6.6

(15.5

)

(8.9

)

Total Change in Interest Income15.1

(31.4

)

(16.3

)

Change in Interest Expense:Interest-Bearing DepositsDemand0.2

(0.6

)

(0.4

)

Savings0.5

(6.1

)

(5.6

)

Time(0.4

)

(3.6

)

(4.0

)

Total Interest-Bearing Deposits0.3

(10.3

)

(10.0

)

Short-Term Borrowings(0.1

)

-

(0.1

)

Securities Sold Under Agreements to Repurchase0.1

(0.5

)

(0.4

)

Other Debt(0.1

)

(0.2

)

(0.3

)

Total Change in Interest Expense0.2

(11.0

)

(10.8

)

Change in Net Interest Income$

14.9

$

(20.4

)

$

(5.5

)

Bank of Hawaii Corporation and SubsidiariesAnalysis of Change in Net Interest Income - Table 8bTaxable-Equivalent Basis Three Months Ended March 31, 2021 Compared to March 31, 2020(dollars in millions) Volume ^ Rate ^1 Total 1Change in Interest Income:Funds Sold $ 0.4 $ (0.9 ) $ (0.5 )

Investment SecuritiesAvailable-for-SaleTaxable 6.4 (7.0 ) (0.6 )

Non-Taxable (0.2 ) (0.1 ) (0.3 )

Held-to-MaturityTaxable 2.0 (7.8 ) (5.8 )

Non-Taxable (0.1 ) (0.1 ) (0.2 )

Total Investment Securities 8.1 (15.0 ) (6.9 )

Loans and LeasesCommercial and Industrial 3.9 (2.8 ) 1.1

Commercial Mortgage 2.6 (6.4 ) (3.8 )

Construction 0.5 (0.7 ) (0.2 )

Commercial Lease Financing - (0.1 ) (0.1 )

Residential Mortgage 2.3 (3.3 ) (1.0 )

Home Equity (0.8 ) (1.8 ) (2.6 )

Automobile (0.2 ) (0.1 ) (0.3 )

Other ^2 (1.7 ) (0.3 ) (2.0 )

Total Loans and Leases 6.6 (15.5 ) (8.9 )

Total Change in Interest Income 15.1 (31.4 ) (16.3 )

Change in Interest Expense:Interest-Bearing DepositsDemand 0.2 (0.6 ) (0.4 )

Savings 0.5 (6.1 ) (5.6 )

Time (0.4 ) (3.6 ) (4.0 )

Total Interest-Bearing Deposits 0.3 (10.3 ) (10.0 )

Short-Term Borrowings (0.1 ) - (0.1 )

Securities Sold Under Agreements to Repurchase 0.1 (0.5 ) (0.4 )

Other Debt (0.1 ) (0.2 ) (0.3 )

Total Change in Interest Expense 0.2 (11.0 ) (10.8 )

Change in Net Interest Income $ 14.9 $ (20.4 ) $ (5.5 )

1

The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.2

Comprised of other consumer revolving credit, installment, and consumer lease financing.^ The change in interest income and expense not solely due to changes in1 volume or rate has been allocated on a pro-rata basis to the volume and rate columns.^ Comprised of other consumer revolving credit, installment, and consumer2 lease financing.

Bank of Hawaii Corporation and SubsidiariesSalaries and BenefitsTable 9Three Months EndedMarch 31,

December 31,

March 31,

(dollars in thousands)2021

2020

2020

Salaries$

31,569

$

33,907

$

33,486

Incentive Compensation5,914

3,084

245

Share-Based Compensation2,584

2,029

1,291

Commission Expense2,436

2,164

1,374

Retirement and Other Benefits5,517

5,212

4,706

Payroll Taxes3,968

2,292

4,543

Medical, Dental, and Life Insurance2,424

1,523

4,142

Separation Expense1,839

(11

)

4,676

Total Salaries and Benefits$

56,251

$

50,200

$

54,463

Bank of Hawaii Corporation andSubsidiariesSalaries and Benefits Table 9 Three Months Ended March 31, December March 31, 31,

(dollars in thousands) 2021 2020 2020

Salaries $ 31,569 $ 33,907 $ 33,486

Incentive Compensation 5,914 3,084 245

Share-Based Compensation 2,584 2,029 1,291

Commission Expense 2,436 2,164 1,374

Retirement and Other Benefits 5,517 5,212 4,706

Payroll Taxes 3,968 2,292 4,543

Medical, Dental, and Life Insurance 2,424 1,523 4,142

Separation Expense 1,839 (11 ) 4,676

Total Salaries and Benefits $ 56,251 $ 50,200 $ 54,463

Bank of Hawaii Corporation and SubsidiariesLoan and Lease Portfolio BalancesTable 10March 31,December 31,September 30,June 30,March 31,(dollars in thousands)2021

2020

2020

2020

2020

CommercialCommercial and Industrial$ 2,013,981

$ 1,875,293

$ 1,908,482

$ 1,956,939

$ 1,558,232

Commercial Mortgage2,859,246

2,854,829

2,745,611

2,707,534

2,616,243

Construction281,164

259,798

250,943

245,099

245,390

Lease Financing104,980

110,766

111,831

113,187

110,704

Total Commercial5,259,371

5,100,686

5,016,867

5,022,759

4,530,569

ConsumerResidential Mortgage4,216,976

4,130,513

4,044,228

3,989,393

3,928,183

Home Equity1,577,500

1,604,538

1,605,486

1,640,887

1,692,154

Automobile710,407

708,800

709,937

700,702

716,214

Other 1376,449

395,483

417,090

451,629

485,660

Total Consumer6,881,332

6,839,334

6,776,741

6,782,611

6,822,211

Total Loans and Leases$ 12,140,703

$ 11,940,020

$ 11,793,608

$ 11,805,370

$ 11,352,780

DepositsMarch 31,December 31,September 30,June 30,March 31,(dollars in thousands)2021

2020

2020

2020

2020

Consumer$ 9,746,713

$ 9,347,725

$ 8,903,808

$ 8,766,885

$ 8,294,464

Commercial8,241,102

7,302,832

7,159,531

7,295,033

6,358,583

Public and Other1,568,836

1,561,064

1,675,544

1,361,237

1,402,314

Total Deposits$ 19,556,651

$ 18,211,621

$ 17,738,883

$ 17,423,155

$ 16,055,361

Bank of Hawaii Corporation andSubsidiariesLoan and Lease Portfolio Table 10Balances March 31, December September June 30, March 31, 31, 30,(dollars in 2021 2020 2020 2020 2020thousands)CommercialCommercial and $ $ $ $ $Industrial 2,013,981 1,875,293 1,908,482 1,956,939 1,558,232

Commercial Mortgage 2,859,246 2,854,829 2,745,611 2,707,534 2,616,243

Construction 281,164 259,798 250,943 245,099 245,390

Lease Financing 104,980 110,766 111,831 113,187 110,704

Total Commercial 5,259,371 5,100,686 5,016,867 5,022,759 4,530,569

ConsumerResidential Mortgage 4,216,976 4,130,513 4,044,228 3,989,393 3,928,183

Home Equity 1,577,500 1,604,538 1,605,486 1,640,887 1,692,154

Automobile 710,407 708,800 709,937 700,702 716,214

Other ^1 376,449 395,483 417,090 451,629 485,660

Total Consumer 6,881,332 6,839,334 6,776,741 6,782,611 6,822,211

Total Loans and $ $ $ $ $Leases 12,140,703 11,940,020 11,793,608 11,805,370 11,352,780

Deposits March 31, December September June 30, March 31, 31, 30,(dollars in 2021 2020 2020 2020 2020thousands) $ $ $ $ $Consumer 9,746,713 9,347,725 8,903,808 8,766,885 8,294,464

Commercial 8,241,102 7,302,832 7,159,531 7,295,033 6,358,583

Public and Other 1,568,836 1,561,064 1,675,544 1,361,237 1,402,314

$ $ $ $ $Total Deposits 19,556,651 18,211,621 17,738,883 17,423,155 16,055,361

1

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

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

Bank of Hawaii Corporation and SubsidiariesNon-Performing Assets and Accruing Loans and Leases Past Due 90 Days or MoreTable 11March 31,

December 31,

September 30,

June 30,

March 31,

(dollars in thousands)2021

2020

2020

2020

2020

Non-Performing AssetsNon-Accrual Loans and LeasesCommercialCommercial and Industrial$

293

$

441

$

475

$

459

$

634

Commercial Mortgage8,503

8,527

8,615

8,672

9,048

Total Commercial8,796

8,968

9,090

9,131

9,682

ConsumerResidential Mortgage1,804

3,223

3,543

5,888

4,330

Home Equity4,951

3,958

3,661

5,176

4,086

Total Consumer6,755

7,181

7,204

11,064

8,416

Total Non-Accrual Loans and Leases15,551

16,149

16,294

20,195

18,098

Foreclosed Real Estate2,332

2,332

2,332

2,506

2,506

Total Non-Performing Assets$

17,883

$

18,481

$

18,626

$

22,701

$

20,604

Accruing Loans and Leases Past Due 90 Days or MoreCommercialCommercial and Industrial$

9

$

-

$

-

$

-

$

-

Total Commercial9

-

-

-

-

ConsumerResidential Mortgage$

4,069

$

5,274

$

6,607

$

4,937

$

3,024

Home Equity4,906

3,187

2,571

3,519

3,426

Automobile604

925

156

133

866

Other 1828

1,160

258

296

1,205

Total Consumer10,407

10,546

9,592

8,885

8,521

Total Accruing Loans and Leases Past Due 90 Days or More$

10,416

$

10,546

$

9,592

$

8,885

$

8,521

Restructured Loans on Accrual Statusand Not Past Due 90 Days or More$

74,216

$

68,065

$

58,650

$

59,713

$

61,425

Total Loans and Leases$

12,140,703

$

11,940,020

$

11,793,608

$

11,805,370

$

11,352,780

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases0.13

%

0.14

%

0.14

%

0.17

%

0.16

%

Ratio of Non-Performing Assets to Total Loans and Leasesand Foreclosed Real Estate0.15

%

0.15

%

0.16

%

0.19

%

0.18

%

Ratio of Commercial Non-Performing Assets to Total Commercial Loansand Leases and Commercial Foreclosed Real Estate0.17

%

0.18

%

0.18

%

0.18

%

0.21

%

Ratio of Consumer Non-Performing Assets to Total Consumer Loansand Leases and Consumer Foreclosed Real Estate0.13

%

0.14

%

0.14

%

0.20

%

0.16

%

Ratio of Non-Performing Assets and Accruing Loans and LeasesPast Due 90 Days or More to Total Loans and Leasesand Foreclosed Real Estate0.23

%

0.24

%

0.24

%

0.27

%

0.26

%

Quarter to Quarter Changes in Non-Performing AssetsBalance at Beginning of Quarter$

18,481

$

18,626

$

22,701

$

20,604

$

20,117

Additions2,992

434

938

5,856

1,754

ReductionsPayments(2,481

)

(490

)

(3,729

)

(2,736

)

(315

)

Return to Accrual Status(1,014

)

-

(1,035

)

(822

)

(437

)

Sales of Foreclosed Real Estate-

-

(175

)

-

(231

)

Charge-offs/Write-downs(95

)

(89

)

(74

)

(201

)

(284

)

Total Reductions(3,590

)

(579

)

(5,013

)

(3,759

)

(1,267

)

Balance at End of Quarter$

17,883

$

18,481

$

18,626

$

22,701

$

20,604

Bank of HawaiiCorporationandSubsidiariesNon-Performing Assets and Accruing Loans and Leases Past Due 90 Table 11Days or More March 31, December 31, September 30, June 30, March 31,

(dollars in 2021 2020 2020 2020 2020thousands)Non-PerformingAssetsNon-AccrualLoans andLeasesCommercialCommercial and $ 293 $ 441 $ 475 $ 459 $ 634 IndustrialCommercial 8,503 8,527 8,615 8,672 9,048 MortgageTotal 8,796 8,968 9,090 9,131 9,682 CommercialConsumerResidential 1,804 3,223 3,543 5,888 4,330 MortgageHome Equity 4,951 3,958 3,661 5,176 4,086

Total Consumer 6,755 7,181 7,204 11,064 8,416

TotalNon-Accrual 15,551 16,149 16,294 20,195 18,098 Loans andLeasesForeclosed 2,332 2,332 2,332 2,506 2,506 Real EstateTotal $ 17,883 $ 18,481 $ 18,626 $ 22,701 $ 20,604 Non-PerformingAssets Accruing Loansand LeasesPast Due 90Days or MoreCommercialCommercial and $ 9 $ - $ - $ - $ - IndustrialTotal 9 - - - - CommercialConsumerResidential $ 4,069 $ 5,274 $ 6,607 $ 4,937 $ 3,024 MortgageHome Equity 4,906 3,187 2,571 3,519 3,426

Automobile 604 925 156 133 866

Other^ 1 828 1,160 258 296 1,205

Total Consumer 10,407 10,546 9,592 8,885 8,521

Total AccruingLoans and $ 10,416 $ 10,546 $ 9,592 $ 8,885 $ 8,521 Leases PastDue 90 Days orMoreRestructuredLoans onAccrual Statusand Not Past $ 74,216 $ 68,065 $ 58,650 $ 59,713 $ 61,425 Due 90 Days orMoreTotal Loans $ 12,140,703 $ 11,940,020 $ 11,793,608 $ 11,805,370 $ 11,352,780 and Leases Ratio ofNon-AccrualLoans and 0.13 % 0.14 % 0.14 % 0.17 % 0.16 %Leases toTotal Loansand Leases Ratio ofNon-PerformingAssets toTotal Loansand Leasesand Foreclosed 0.15 % 0.15 % 0.16 % 0.19 % 0.18 %Real Estate Ratio ofCommercialNon-PerformingAssets toTotalCommercialLoansand Leases andCommercial 0.17 % 0.18 % 0.18 % 0.18 % 0.21 %ForeclosedReal Estate Ratio ofConsumerNon-PerformingAssets toTotal ConsumerLoansand Leases andConsumer 0.13 % 0.14 % 0.14 % 0.20 % 0.16 %ForeclosedReal Estate Ratio ofNon-PerformingAssets andAccruing Loansand LeasesPast Due 90Days or Moreto Total Loansand Leasesand Foreclosed 0.23 % 0.24 % 0.24 % 0.27 % 0.26 %Real Estate Quarter toQuarterChanges inNon-PerformingAssetsBalance at $ 18,481 $ 18,626 $ 22,701 $ 20,604 $ 20,117 Beginning ofQuarterAdditions 2,992 434 938 5,856 1,754

ReductionsPayments (2,481 ) (490 ) (3,729 ) (2,736 ) (315 )

Return to (1,014 ) - (1,035 ) (822 ) (437 )Accrual StatusSales of - - (175 ) - (231 )ForeclosedReal EstateCharge-offs/ (95 ) (89 ) (74 ) (201 ) (284 )Write-downsTotal (3,590 ) (579 ) (5,013 ) (3,759 ) (1,267 )ReductionsBalance at End $ 17,883 $ 18,481 $ 18,626 $ 22,701 $ 20,604 of Quarter1Comprised of other revolving credit, installment, and lease financing.

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

Bank of Hawaii Corporation and SubsidiariesReserve for Credit LossesTable 12Three Months EndedMarch 31,

December 31,

March 31,

(dollars in thousands)2021

2020

2020

Balance at Beginning of Period$

221,303

$

205,813

$

116,849

CECL Adoption (Day 1) Impact-

-

(5,072

)

Loans and Leases Charged-OffCommercialCommercial and Industrial(248

)

(177

)

(693

)

ConsumerResidential Mortgage(4

)

(120

)

(20

)

Home Equity(16

)

(81

)

-

Automobile(2,109

)

(393

)

(2,500

)

Other 1(3,914

)

(2,460

)

(3,964

)

Total Loans and Leases Charged-Off(6,291

)

(3,231

)

(7,177

)

Recoveries on Loans and Leases Previously Charged-OffCommercialCommercial and Industrial112

244

289

Commercial Mortgage-

-

40

ConsumerResidential Mortgage955

497

263

Home Equity533

868

976

Automobile919

910

1,005

Other 1856

968

864

Total Recoveries on Loans and Leases Previously Charged-Off3,375

3,487

3,437

Net Recovered (Charged-Off) - Loans and Leases(2,916

)

256

(3,740

)

Net Charged-Off - Accrued Interest Receivable(308

)

-

-

Provision for Credit Losses:Loans and Leases(14,993

)

12,500

33,600

Accrued Interest Receivable 2-

2,700

-

Unfunded Commitments 3693

34

(170

)

Balance at End of Period$

203,779

$

221,303

$

141,467

ComponentsAllowance for Credit Losses - Loans and Leases$

198,343

216,252

138,150

Allowance for Credit Losses - Accrued Interest Receivable 22,392

2,700

-

Reserve for Unfunded Commitments 33,044

2,351

3,317

Total Reserve for Credit Losses$

203,779

$

221,303

$

141,467

Average Loans and Leases Outstanding$

11,952,587

$

11,835,929

$

11,060,707

Ratio of Net Loans and Leases Charged-Off (Recovered) toAverage Loans and Leases Outstanding (annualized)0.10

%

(0.01

%)

0.14

%

Ratio of Allowance for Credit Losses to Loans and Leases Outstanding1.63

%

1.81

%

1.22

%

Bank of Hawaii Corporationand SubsidiariesReserve for Credit Losses Table 12 Three Months Ended March 31, December 31, March 31,

(dollars in thousands) 2021 2020 2020

Balance at Beginning of $ 221,303 $ 205,813 $ 116,849 Period CECL Adoption (Day 1) Impact - - (5,072 )

Loans and Leases Charged-OffCommercialCommercial and Industrial (248 ) (177 ) (693 )

ConsumerResidential Mortgage (4 ) (120 ) (20 )

Home Equity (16 ) (81 ) -

Automobile (2,109 ) (393 ) (2,500 )

Other ^1 (3,914 ) (2,460 ) (3,964 )

Total Loans and Leases (6,291 ) (3,231 ) (7,177 )Charged-OffRecoveries on Loans andLeases PreviouslyCharged-OffCommercialCommercial and Industrial 112 244 289

Commercial Mortgage - - 40

ConsumerResidential Mortgage 955 497 263

Home Equity 533 868 976

Automobile 919 910 1,005

Other ^1 856 968 864

Total Recoveries on Loans 3,375 3,487 3,437 and Leases PreviouslyCharged-OffNet Recovered (Charged-Off) (2,916 ) 256 (3,740 )- Loans and LeasesNet Charged-Off - Accrued (308 ) - - Interest ReceivableProvision for Credit Losses:Loans and Leases (14,993 ) 12,500 33,600

Accrued Interest Receivable^ - 2,700 - 2Unfunded Commitments ^3 693 34 (170 )

Balance at End of Period $ 203,779 $ 221,303 $ 141,467

ComponentsAllowance for Credit Losses $ 198,343 216,252 138,150 - Loans and LeasesAllowance for Credit Losses 2,392 2,700 - - Accrued InterestReceivable^ 2Reserve for Unfunded 3,044 2,351 3,317 Commitments ^3Total Reserve for Credit $ 203,779 $ 221,303 $ 141,467 Losses Average Loans and Leases $ 11,952,587 $ 11,835,929 $ 11,060,707 Outstanding Ratio of Net Loans andLeases Charged-Off(Recovered) toAverage Loans and Leases 0.10 % (0.01 %) 0.14 %Outstanding (annualized)Ratio of Allowance for 1.63 % 1.81 % 1.22 %Credit Losses to Loans andLeases Outstanding1

Comprised of other revolving credit, installment, and lease financing.2

Beginning December 31, 2020, the Company established a reserve on accrued interest receivable related to loans in which interest payment forbearances were granted to borrowers impacted by the COVID-19 pandemic. The reserve was recorded as a contra-asset against accrued interest receivable with the offset to provision for credit losses.3

The reserve for unfunded commitments is separately recorded in other liabilities in the consolidated statements of condition. For the three months ended March 31, 2021, the offsetting provision was recorded in provision for credit losses in the consolidated statements of income. In previous reporting periods, the offsetting provision was recorded in other noninterest expense.^1 Comprised of other revolving credit, installment, and lease financing.

Beginning December 31, 2020, the Company established a reserve on accrued^ interest receivable related to loans in which interest payment forbearances2 were granted to borrowers impacted by the COVID-19 pandemic. The reserve was recorded as a contra-asset against accrued interest receivable with the offset to provision for credit losses. The reserve for unfunded commitments is separately recorded in other^ liabilities in the consolidated statements of condition. For the three3 months ended March 31, 2021, the offsetting provision was recorded in provision for credit losses in the consolidated statements of income. In previous reporting periods, the offsetting provision was recorded in other noninterest expense.Bank of Hawaii Corporation and SubsidiariesBusiness Segments Selected Financial InformationTable 13Consumer

Commercial

Treasury

Consolidated

(dollars in thousands)Banking

Banking

and Other

Total

Three Months Ended March 31, 2021Net Interest Income$

69,762

$

47,143

$

3,664

$

120,569

Provision for Credit Losses2,866

50

(17,216

)

(14,300

)

Net Interest Income After Provision for Credit Losses66,896

47,093

20,880

134,869

Noninterest Income33,698

7,858

1,414

42,970

Noninterest Expense(78,181

)

(15,677

)

(5,007

)

(98,865

)

Income Before Income Taxes22,413

39,274

17,287

78,974

Provision for Income Taxes(5,474

)

(9,558

)

(3,993

)

(19,025

)

Net Income$

16,939

$

29,716

$

13,294

$

59,949

Total Assets as of March 31, 2021$

7,556,756

$

5,224,386

$

9,166,129

$

21,947,271

Three Months Ended March 31, 2020 1Net Interest Income$

73,914

$

45,237

$

6,815

$

125,966

Provision for Credit Losses3,451

290

29,859

33,600

Net Interest Income (Loss) After Provision for Credit Losses70,463

44,947

(23,044

)

92,366

Noninterest Income32,590

11,735

1,824

46,149

Noninterest Expense(70,746

)

(17,346

)

(8,220

)

(96,312

)

Income (Loss) Before Income Taxes32,307

39,336

(29,440

)

42,203

Provision for Income Taxes(8,116

)

(9,555

)

10,210

(7,461

)

Net Income (Loss)$

24,191

$

29,781

$

(19,230

)

$

34,742

Total Assets as of March 31, 2020 1$

7,388,217

$

4,728,651

$

6,425,365

$

18,542,233

Bank of HawaiiCorporation andSubsidiariesBusinessSegmentsSelected Table 13FinancialInformation Consumer Commercial Treasury Consolidated

(dollars in Banking Banking and Other Totalthousands)Three MonthsEnded March 31,2021Net Interest $ 69,762 $ 47,143 $ 3,664 $ 120,569 IncomeProvision for 2,866 50 (17,216 ) (14,300 )Credit LossesNet InterestIncome After 66,896 47,093 20,880 134,869 Provision forCredit LossesNoninterest 33,698 7,858 1,414 42,970 IncomeNoninterest (78,181 ) (15,677 ) (5,007 ) (98,865 )ExpenseIncome Before 22,413 39,274 17,287 78,974 Income TaxesProvision for (5,474 ) (9,558 ) (3,993 ) (19,025 )Income TaxesNet Income $ 16,939 $ 29,716 $ 13,294 $ 59,949

Total Assets as $ 7,556,756 $ 5,224,386 $ 9,166,129 $ 21,947,271 of March 31,2021 Three MonthsEnded March 31,2020 ^1Net Interest $ 73,914 $ 45,237 $ 6,815 $ 125,966 IncomeProvision for 3,451 290 29,859 33,600 Credit LossesNet InterestIncome (Loss) 70,463 44,947 (23,044 ) 92,366 After Provisionfor CreditLossesNoninterest 32,590 11,735 1,824 46,149 IncomeNoninterest (70,746 ) (17,346 ) (8,220 ) (96,312 )ExpenseIncome (Loss) 32,307 39,336 (29,440 ) 42,203 Before IncomeTaxesProvision for (8,116 ) (9,555 ) 10,210 (7,461 )Income TaxesNet Income $ 24,191 $ 29,781 $ (19,230 ) $ 34,742 (Loss)Total Assets as $ 7,388,217 $ 4,728,651 $ 6,425,365 $ 18,542,233 of March 31,2020 ^11

Certain prior period information has been reclassified to conform to current presentation.^1 Certain prior period information has been reclassified to conform to current presentation.Bank of Hawaii Corporation and SubsidiariesSelected Quarterly Financial DataTable 14Three Months EndedMarch 31,

December 31,

September 30,

June 30,

March 31,

(dollars in thousands, except per share amounts)2021

2020

2020

2020

2020

Quarterly Operating ResultsInterest IncomeInterest and Fees on Loans and Leases$

99,299

$

98,471

$

103,189

$

107,628

$

108,210

Income on Investment SecuritiesAvailable-for-Sale15,837

15,449

14,558

14,576

16,711

Held-to-Maturity13,300

14,113

15,967

16,723

19,252

Deposits7

1

3

1

9

Funds Sold137

115

149

92

546

Other185

167

151

125

218

Total Interest Income128,765

128,316

134,017

139,145

144,946

Interest ExpenseDeposits4,329

4,861

5,891

7,954

14,260

Securities Sold Under Agreements to Repurchase3,533

3,614

3,622

4,020

4,025

Funds Purchased1

5

-

18

72

Short-Term Borrowings-

-

1

22

39

Other Debt333

337

337

440

584

Total Interest Expense8,196

8,817

9,851

12,454

18,980

Net Interest Income120,569

119,499

124,166

126,691

125,966

Provision for Credit Losses(14,300

)

15,200

28,600

40,400

33,600

Net Interest Income After Provision for Credit Losses134,869

104,299

95,566

86,291

92,366

Noninterest IncomeTrust and Asset Management11,278

11,239

10,752

10,550

10,915

Mortgage Banking5,862

6,851

4,047

4,278

2,695

Service Charges on Deposit Accounts6,128

6,335

6,027

5,097

7,451

Fees, Exchange, and Other Service Charges13,607

12,143

12,296

9,417

13,200

Investment Securities Gains (Losses), Net(1,203

)

(1,193

)

(1,121

)

13,216

(970

)

Annuity and Insurance702

670

881

883

928

Bank-Owned Life Insurance1,917

2,353

1,806

1,649

1,580

Other4,679

6,860

7,046

6,178

10,350

Total Noninterest Income42,970

45,258

41,734

51,268

46,149

Noninterest ExpenseSalaries and Benefits56,251

50,200

51,951

50,715

54,463

Net Occupancy9,090

14,536

7,281

8,761

8,955

Net Equipment8,878

9,574

9,223

8,195

8,456

Data Processing6,322

4,604

4,691

4,416

4,788

Professional Fees3,406

3,174

2,743

3,061

3,208

FDIC Insurance1,654

1,484

1,282

1,558

1,456

Other13,264

15,082

12,778

12,186

14,986

Total Noninterest Expense98,865

98,654

89,949

88,892

96,312

Income Before Provision for Income Taxes78,974

50,903

47,351

48,667

42,203

Provision for Income Taxes19,025

8,589

9,511

9,759

7,461

Net Income$

59,949

$

42,314

$

37,840

$

38,908

$

34,742

Basic Earnings Per Share$

1.51

$

1.06

$

0.95

$

0.98

$

0.88

Diluted Earnings Per Share$

1.50

$

1.06

$

0.95

$

0.98

$

0.87

Balance Sheet TotalsLoans and Leases$

12,140,703

$

11,940,020

$

11,793,608

$

11,805,370

$

11,352,780

Total Assets21,947,271

20,603,651

20,109,489

19,769,942

18,542,233

Total Deposits19,556,651

18,211,621

17,738,883

17,423,155

16,055,361

Total Shareholders' Equity1,360,221

1,374,507

1,361,739

1,352,082

1,327,929

Performance RatiosReturn on Average Assets1.15

%

0.83

%

0.76

%

0.82

%

0.77

%

Return on Average Shareholders' Equity17.65

12.26

11.01

11.58

10.64

Efficiency Ratio 160.45

59.88

54.22

49.95

55.96

Net Interest Margin 22.43

2.48

2.67

2.83

2.96

Bank of Hawaii Corporation andSubsidiariesSelected Quarterly Table 14Financial Data Three Months Ended March 31, December 31, September 30, June 30, March 31,

(dollars in 2021 2020 2020 2020 2020thousands, exceptper share amounts)QuarterlyOperating ResultsInterest IncomeInterest and Fees $ 99,299 $ 98,471 $ 103,189 $ 107,628 $ 108,210 on Loans andLeasesIncome onInvestmentSecuritiesAvailable-for-Sale 15,837 15,449 14,558 14,576 16,711

Held-to-Maturity 13,300 14,113 15,967 16,723 19,252

Deposits 7 1 3 1 9

Funds Sold 137 115 149 92 546

Other 185 167 151 125 218

Total Interest 128,765 128,316 134,017 139,145 144,946 IncomeInterest ExpenseDeposits 4,329 4,861 5,891 7,954 14,260

Securities Sold 3,533 3,614 3,622 4,020 4,025 Under Agreementsto RepurchaseFunds Purchased 1 5 - 18 72

Short-Term - - 1 22 39 BorrowingsOther Debt 333 337 337 440 584

Total Interest 8,196 8,817 9,851 12,454 18,980 ExpenseNet Interest 120,569 119,499 124,166 126,691 125,966 IncomeProvision for (14,300 ) 15,200 28,600 40,400 33,600 Credit LossesNet InterestIncome After 134,869 104,299 95,566 86,291 92,366 Provision forCredit LossesNoninterest IncomeTrust and Asset 11,278 11,239 10,752 10,550 10,915 ManagementMortgage Banking 5,862 6,851 4,047 4,278 2,695

Service Charges on 6,128 6,335 6,027 5,097 7,451 Deposit AccountsFees, Exchange, 13,607 12,143 12,296 9,417 13,200 and Other ServiceChargesInvestment (1,203 ) (1,193 ) (1,121 ) 13,216 (970 )Securities Gains(Losses), NetAnnuity and 702 670 881 883 928 InsuranceBank-Owned Life 1,917 2,353 1,806 1,649 1,580 InsuranceOther 4,679 6,860 7,046 6,178 10,350

Total Noninterest 42,970 45,258 41,734 51,268 46,149 IncomeNoninterestExpenseSalaries and 56,251 50,200 51,951 50,715 54,463 BenefitsNet Occupancy 9,090 14,536 7,281 8,761 8,955

Net Equipment 8,878 9,574 9,223 8,195 8,456

Data Processing 6,322 4,604 4,691 4,416 4,788

Professional Fees 3,406 3,174 2,743 3,061 3,208

FDIC Insurance 1,654 1,484 1,282 1,558 1,456

Other 13,264 15,082 12,778 12,186 14,986

Total Noninterest 98,865 98,654 89,949 88,892 96,312 ExpenseIncome Before 78,974 50,903 47,351 48,667 42,203 Provision forIncome TaxesProvision for 19,025 8,589 9,511 9,759 7,461 Income TaxesNet Income $ 59,949 $ 42,314 $ 37,840 $ 38,908 $ 34,742

Basic Earnings Per $ 1.51 $ 1.06 $ 0.95 $ 0.98 $ 0.88 ShareDiluted Earnings $ 1.50 $ 1.06 $ 0.95 $ 0.98 $ 0.87 Per Share Balance SheetTotalsLoans and Leases $ 12,140,703 $ 11,940,020 $ 11,793,608 $ 11,805,370 $ 11,352,780

Total Assets 21,947,271 20,603,651 20,109,489 19,769,942 18,542,233

Total Deposits 19,556,651 18,211,621 17,738,883 17,423,155 16,055,361

Total 1,360,221 1,374,507 1,361,739 1,352,082 1,327,929 Shareholders'Equity Performance RatiosReturn on Average 1.15 % 0.83 % 0.76 % 0.82 % 0.77 %AssetsReturn on Average 17.65 12.26 11.01 11.58 10.64 Shareholders'EquityEfficiency Ratio ^ 60.45 59.88 54.22 49.95 55.96 1Net Interest 2.43 2.48 2.67 2.83 2.96 Margin ^21

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.^ Efficiency ratio is defined as noninterest expense divided by total1 revenue (net interest income and noninterest income).

^ Net interest margin is defined as net interest income, on a2 taxable-equivalent basis, as a percentage of average earning assets.

Bank of Hawaii Corporation and SubsidiariesHawaii Economic TrendsTable 15Two Months Ended

Year Ended

($ in millions; jobs in thousands)February 28, 2021

December 31, 2020

December 31, 2019

Hawaii Economic TrendsState General Fund Revenues 1$ 1,111.9

(17.6)

%

$ 6,415.1

(12.3)

%

$ 7,316.5

5.5

%

General Excise and Use Tax Revenue 1$ 551.1

(18.9)

%

$ 3,038.8

(15.6)

%

$ 3,602.2

5.1

%

Jobs 2595.3

588.2

659.7

March 31,

December 31,

(spot rates)2021

2020

2019

Unemployment, seasonally adjusted 3Statewide9.0

%

10.3

%

2.1

%

Oahu7.6

9.3

2.0

Island of Hawaii8.3

10.1

2.5

Maui12.1

14.3

2.0

Kauai13.0

13.9

2.1

March 31,

December 31,

(percentage change, except months of inventory)2021

2020

2019

2018

Housing Trends (Single Family Oahu) 4Median Home Price17.3

%5.2

%

(0.1)

%

4.6

%

Home Sales Volume (units)11.9

%2.3

%

3.9

%

(7.7)

%

Months of Inventory1.3

1.4

2.5

2.8

Monthly Visitor Arrivals,Percentage Change(in thousands)Not Seasonally Adjustedfrom Previous YearTourism 5February 28, 2021235.3

(71.6)

January 31, 2021172.0

(80.1)

December 31, 2020235.8

(75.2)

November 30, 2020183.8

(77.3)

October 31, 202076.6

(90.4)

September 30, 202018.9

(97.4)

August 31, 202022.3

(97.6)

July 31, 202022.6

(97.7)

June 30, 202017.1

(98.2)

May 31, 20209.1

(98.9)

April 30, 20204.6

(99.5)

March 31, 2020434.9

(53.7)

February 29, 2020828.1

5.8

January 31, 2020862.6

5.1

December 31, 2019952.4

5.8

November 30, 2019809.1

3.9

October 31, 2019796.2

4.3

September 30, 2019738.2

3.1

August 31, 2019926.4

9.6

July 31, 2019995.2

5.9

June 30, 2019951.6

6.1

May 31, 2019841.4

4.6

April 30, 2019856.3

6.6

March 31, 2019939.1

3.9

February 28, 2019782.7

0.5

January 31, 2019820.6

3.0

Bank of Hawaii Corporation andSubsidiariesHawaii TableEconomic 15Trends Two Months Ended Year Ended

($ inmillions; February 28, 2021 December 31, 2020 December 31, 2019jobs inthousands)HawaiiEconomicTrendsState General $ (17.6) % $ (12.3) % $ 5.5 %Fund Revenues 1,111.9 6,415.1 7,316.5^ 1General $ $Excise and $ 551.1 (18.9) % 3,038.8 (15.6) % 3,602.2 5.1 %Use TaxRevenue^ 1Jobs ^2 595.3 588.2 659.7

March December 31, 31,

(spot rates) 2021 2020 2019

Unemployment,seasonallyadjusted^ 3Statewide 9.0 % 10.3 % 2.1 %

Oahu 7.6 9.3 2.0

Island of 8.3 10.1 2.5HawaiiMaui 12.1 14.3 2.0

Kauai 13.0 13.9 2.1

March December 31, 31,

(percentagechange, 2021 2020 2019 2018except monthsof inventory)HousingTrends(SingleFamily Oahu)^4Median Home 17.3 % 5.2 % (0.1) % 4.6 %PriceHome Sales 11.9 2.3 % 3.9 % (7.7) %Volume %(units)Months of 1.3 1.4 2.5 2.8Inventory Monthly Visitor Percentage Change Arrivals,(in Not Seasonally from Previous Yearthousands) AdjustedTourism ^5February 28, 235.3 (71.6)2021January 31, 172.0 (80.1)2021December 31, 235.8 (75.2)2020November 30, 183.8 (77.3)2020October 31, 76.6 (90.4)2020September 30, 18.9 (97.4)2020August 31, 22.3 (97.6)2020July 31, 2020 22.6 (97.7)

June 30, 2020 17.1 (98.2)

May 31, 2020 9.1 (98.9)

April 30, 4.6 (99.5)2020March 31, 434.9 (53.7)2020February 29, 828.1 5.82020January 31, 862.6 5.12020December 31, 952.4 5.82019November 30, 809.1 3.92019October 31, 796.2 4.32019September 30, 738.2 3.12019August 31, 926.4 9.62019July 31, 2019 995.2 5.9

June 30, 2019 951.6 6.1

May 31, 2019 841.4 4.6

April 30, 856.3 6.62019March 31, 939.1 3.92019February 28, 782.7 0.52019January 31, 820.6 3.020191

Source: Hawaii Department of Business, Economic Development & Tourism2

Source: U. S. Bureau of Labor Statistics3

Source: UHERO4

Source: Honolulu Board of REALTORS5

Source: Hawaii Tourism Authority View source version on businesswire.com: https://www.businesswire.com/news/home/20210426005158/en/

CONTACT: Media Inquiries Melissa Torres-Laing Email: Melissa.Torres-Laing@boh.com Telephone: 808-694-8384 Mobile: 808-859-1703

CONTACT: Investor/Analyst Inquiries Janelle Higa Email: Janelle.Higa@boh.com Telephone: 808-694-8007