Business Wire | Jul 27, 2020 06:45AM EDT

Bank of Hawaii Corporation Second Quarter 2020 Financial Results

Jul. 27, 2020

HONOLULU--(BUSINESS WIRE)--Jul. 27, 2020--Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.98 for the second quarter of 2020 compared with diluted earnings per share of $0.87 in the previous quarter and diluted earnings per share of $1.40 in the same quarter last year. Net income for the second quarter of 2020 was $38.9 million compared with net income of $34.7 million in the first quarter of 2020 and net income of $56.9 million in the second quarter of 2019.

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Loan and lease balances increased to $11.8 billion at June 30, 2020, up 4.0 percent from March 31, 2020 and up 9.7 percent compared with June 30, 2019. Total deposits reached a new record high of $17.4 billion at the end of the second quarter of 2020, up 8.5 percent from March 31, 2020 and up 12.5 percent compared with June 30, 2019.

"Bank of Hawaii Corporation continued to perform well in this very challenging environment," said Peter Ho, Chairman, President and CEO. "Our balance sheet continued to grow while maintaining strong levels of capital and liquidity. Our asset quality remained stable during the quarter and we are well positioned for the future. During the quarter we reopened nine of our branches and our dedicated employees were able to support the needs of our customers and community during this unprecedented period."

The return on average assets for the second quarter of 2020 was 0.82 percent, up from 0.77 percent in the previous quarter and down from 1.31 percent in the same quarter last year. The return on average equity for the second quarter of 2020 was 11.58 percent, up from 10.64 percent for the first quarter of 2020 and down from 17.97 percent for the second quarter of 2019. The efficiency ratio for the second quarter of 2020 improved to 49.95 percent compared with 55.96 percent in the previous quarter and 54.69 percent in the same quarter last year.

For the six-month period ended June 30, 2020, net income was $73.7 million, down from net income of $115.7 million during the same period last year. Diluted earnings per share were $1.85 for the first half of 2020 compared with diluted earnings per share of $2.82 for the first half of 2019.

The return on average assets for the six-month period ended June 30, 2020 was 0.79 percent compared with the return on average assets of 1.34 percent for the same six months in 2019. The year-to-date return on average equity was 11.11 percent for the first half of 2020 compared with the return on average equity of 18.39 percent for the first half of 2019. The efficiency ratio for the first half of 2020 improved to 52.90 percent compared with 54.95 percent in the same period last year.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the second quarter of 2020 was $127.0 million, an increase of $0.7 million compared with $126.3 million in the first quarter of 2020 and an increase of $2.3 million compared with $124.7 million in the second quarter of 2019. Net interest income in the second quarter of 2020 included an interest recovery of $2.9 million. Net interest income, on a taxable equivalent basis, for the first half of 2020 was $253.4 million, an increase of $2.9 million compared with net interest income of $250.5 million for the first half of 2019. Analyses of the changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin was 2.83 percent for the second quarter of 2020, down 13 basis points from 2.96 percent in the previous quarter and down 21 basis points from the net interest margin of 3.04 percent in the second quarter of 2019. The decrease in the net interest margin is largely due to lower rates and higher levels of liquidity. The net interest margin for the first six months of 2020 was 2.90 percent compared with the net interest margin of 3.08 percent for the same six-month period last year.

Results for the second quarter of 2020 included a provision for credit losses of $40.4 million compared with $33.6 million in the previous quarter and $4.0 million in the same quarter last year. The provision for credit losses during the first half of 2020 was $74.0 million compared with a provision for credit losses of $7.0 million during the same period in 2019.

Noninterest income was $51.3 million in the second quarter of 2020, an increase of $5.2 million compared with $46.1 million in the first quarter of 2020 and an increase of $5.8 million compared with $45.5 million in the second quarter of 2019. Noninterest income during the second quarter of 2020 included a gain of $14.2 million related to a sale of Visa Class B shares. There were no significant items in noninterest income during the first quarter of 2020 or the second quarter of 2019. Adjusted for the sale of the Visa shares, the decline in noninterest income compared to the prior quarter was due to reductions in overdraft and ATM fees and lower customer derivative activity. Noninterest income for the first half of 2020 was $97.4 million, an increase of $8.3 million compared with noninterest income of $89.1 million for the first half of 2019.

Noninterest expense was $88.9 million in the second quarter of 2020, a decrease of $7.4 million compared with $96.3 million in the first quarter of 2020 and a decrease of $3.8 million compared with $92.7 million in the second quarter last year. There were no significant items in noninterest expense during the second quarter of 2020 or the second quarter of 2019. Noninterest expense in the first quarter of 2020 included seasonal payroll expenses of approximately $3.1 million and severance expenses of $4.7 million that were partially offset by the elimination of corporate incentive accruals. Noninterest expense for the first half of 2020 was $185.2 million, a decrease of $0.6 million compared with noninterest expense of $185.8 million for the first half of 2019. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the second quarter of 2020 was 20.05 percent compared with 17.68 percent in the previous quarter and 21.84 percent in the same quarter last year. The effective tax rate for the first half of 2020 was 18.95 percent compared with an effective tax rate of 20.35 percent during the same period last year.

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 13a and 13b.

Asset Quality

The Company's asset quality remained relatively stable during the second quarter of 2020. Total non-performing assets were $22.7 million at June 30, 2020 compared with $20.6 million at March 31, 2020 and $21.8 million at June 30, 2019. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.19 percent at the end of the second quarter of 2020 compared with 0.18 percent at the end of the first quarter of 2020 and 0.20 percent at the end of the second quarter last year.

Accruing loans and leases past due 90 days or more were $8.9 million at June 30, 2020 compared with $8.5 million at March 31, 2020 and $6.4 million at June 30, 2019. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $59.7 million at June 30, 2020, compared with $61.4 million at March 31, 2020 and $48.6 million at June 30, 2019. 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 second quarter of 2020 were $5.1 million or 0.18 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $8.3 million during the quarter were partially offset by recoveries of $3.2 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 comprised of $7.2 million in charge-offs and recoveries of $3.4 million. Net charge-offs during the second quarter of 2019 were $2.4 million or 0.09 percent annualized of total average loans and leases outstanding and comprised of $5.1 million in charge-offs and recoveries of $2.8 million. Net charge-offs during the first half of 2020 were $8.9 million or 0.16 percent annualized of total average loans and leases outstanding compared with net charge-offs of $6.0 million or 0.12 percent annualized of total average loans and leases outstanding for the first half of 2019.

The allowance for credit losses was $173.4 million at June 30, 2020 compared with $138.2 million at March 31, 2020 and $107.7 million at June 30, 2019. The ratio of the allowance for credit losses to total loans and leases was 1.47 percent at June 30, 2020 compared with 1.22 percent at March 31, 2020 and 1.00 percent at June 30, 2019. The reserve for unfunded commitments was $2.5 million at June 30, 2020 compared with $3.3 million at March 31, 2020 and $6.8 million at June 30, 2019. Details of loan and lease charge-offs, recoveries and components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets increased to $19.8 billion at June 30, 2020 compared with $18.5 billion at March 31, 2020 and $17.7 billion at June 30, 2019. Average total assets were $19.2 billion during the second quarter of 2020 compared with $18.2 billion during the previous quarter and $17.5 billion during the second quarter last year.

The investment securities portfolio was $6.0 billion at June 30, 2020, up from $5.7 billion at March 31, 2020 and $5.6 billion at June 30, 2019. The portfolio remains largely comprised of securities issued by U.S. government agencies and includes $3.3 billion in securities held to maturity and $2.7 billion in securities available for sale. The securities portfolio at March 31, 2020 included $3.0 billion in securities held to maturity and $2.7 billion in securities available for sale compared with $3.0 billion in securities held to maturity and $2.6 billion in securities available for sale at June 30, 2019.

Total loans and leases were $11.8 billion at June 30, 2020, up from $11.4 billion at March 31, 2020 and $10.8 billion at June 30, 2019. Average total loans and leases increased to $11.7 billion during the second quarter of 2020 compared with $11.1 billion during the previous quarter and $10.6 billion during the same quarter last year. The commercial loan portfolio was $5.0 billion at June 30, 2020, up $492.2 million or 10.9 percent from commercial loans of $4.5 billion at March 31, 2020, and up $920.4 million or 22.4 percent from commercial loans of $4.1 billion at June 30, 2019. The consumer loan portfolio decreased to $6.8 billion at June 30, 2020, down $39.6 million or 0.6 percent from consumer loans of $6.8 billion at March 31, 2020 and increased $125.8 million or 1.9 percent from consumer loans of $6.7 billion at June 30, 2019. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $17.4 billion at June 30, 2020, up from $16.1 billion at March 31, 2020 and $15.5 billion at June 30, 2019. Average total deposits were $16.7 billion during the second quarter of 2020, up from $15.8 billion during the previous quarter and $15.2 billion during the same quarter last year. Consumer deposits increased to $8.8 billion at June 30, 2020, up $472.4 million or 5.7 percent from consumer deposits of $8.3 billion at March 31, 2020 and up $886.6 million or 11.3 percent from consumer deposits of $7.9 billion at June 30, 2019. Commercial deposits increased to $7.3 billion at June 30, 2020, up $936.5 million or 14.7 percent from commercial deposits of $6.4 billion at March 31, 2020 and up $1.1 billion or 18.1 percent from commercial deposits of $6.2 billion at June 30, 2019. Other deposits, including public funds, were $1.4 billion at June 30, 2020, down $41.1 million or 2.9 percent from March 31, 2020 and down $68.3 million or 4.8 percent from June 30, 2019. Deposit balances are summarized in Tables 7a, 7b, and 10.

Total shareholders' equity increased to $1.4 billion at June 30, 2020 compared with $1.3 billion at March 31, 2020 and June 30, 2019. There were no shares repurchased during the second quarter of 2020. The Tier 1 Capital Ratio at June 30, 2020 was 12.04 percent compared with 11.81 percent at March 31, 2020 and 12.46 percent at June 30, 2019. The Tier 1 leverage ratio at June 30, 2020 was 6.90 percent compared with 7.12 percent at March 31, 2020 and 7.36 percent at June 30, 2019.

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 September 15, 2020 to shareholders of record at the close of business on August 31, 2020.

Conference Call Information

The Company will review its second quarter 2020 financial results today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time). The conference call including presentation materials will be accessible via teleconference and via the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. The toll-free number 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 will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, July 27, 2020. 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 5959108 when prompted. In addition, a 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", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. 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, 2019, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.

Bank of Hawaii Corporation is a 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 and SubsidiariesFinancial Table 1Highlights Three Months Ended Six Months Ended

June 30, March 31, June 30, June 30,

(dollars inthousands, 2020 2020 2019 2020 2019except pershare amounts)For thePeriod:OperatingResultsNet Interest $ 126,691 $ 125,966 $ 124,097 $ 252,657 $ 248,934IncomeProvision for 40,400 33,600 4,000 74,000 7,000Credit LossesTotal 51,268 46,149 45,450 97,417 89,129NoninterestIncomeTotal 88,892 96,312 92,725 185,204 185,782NoninterestExpenseNet Income 38,908 34,742 56,919 73,650 115,718

Basic Earnings 0.98 0.88 1.40 1.86 2.84Per ShareDiluted 0.98 0.87 1.40 1.85 2.82Earnings PerShareDividends 0.67 0.67 0.65 1.34 1.27Declared PerShare PerformanceRatiosReturn on 0.82 % 0.77 % 1.31 % 0.79 % 1.34 %Average AssetsReturn onAverage 11.58 10.64 17.97 11.11 18.39Shareholders'EquityEfficiency 49.95 55.96 54.69 52.90 54.95Ratio ^1Net Interest 2.83 2.96 3.04 2.90 3.08Margin ^2Dividend 68.37 76.14 46.43 72.04 44.72Payout Ratio ^3AverageShareholders' 7.04 7.21 7.27 7.12 7.31Equity toAverage Assets AverageBalancesAverage Loans $ 11,727,649 $ 11,060,707 $ 10,631,558 $ 11,394,178 $ 10,549,893and LeasesAverage Assets 19,189,581 18,222,602 17,480,651 18,706,092 17,359,031

Average 16,679,511 15,817,745 15,162,782 16,248,628 15,067,622DepositsAverage 1,351,345 1,313,848 1,270,162 1,332,596 1,268,808Shareholders'Equity Per Share ofCommon StockBook Value $ 33.76 $ 33.20 $ 31.61 $ 33.76 $ 31.61

Tangible Book 32.97 32.41 30.83 32.97 30.83ValueMarket ValueClosing 61.41 54.91 82.91 61.41 82.91

High 72.74 95.53 84.53 95.53 84.53

Low 51.15 46.70 75.24 46.70 66.54

June 30, March 31, December 31, June 30,

2020 2020 2019 2019

As of PeriodEnd:Balance SheetTotalsLoans and $ 11,805,370 $ 11,352,780 $ 10,990,892 $ 10,759,129LeasesTotal Assets 19,769,942 18,542,233 18,095,496 17,688,845

Total Deposits 17,423,155 16,055,361 15,784,482 15,488,821

Other Debt 60,524 60,545 85,565 110,605

Total 1,352,082 1,327,929 1,286,832 1,285,948Shareholders'Equity Asset QualityNon-Performing $ 22,701 $ 20,604 $ 20,117 $ 21,782AssetsAllowance for 173,439 138,150 110,027 107,672Credit LossesAllowance toLoans and 1.47 % 1.22 % 1.00 % 1.00 %LeasesOutstanding Capital Ratios^4Common Equity 12.04 % 11.81 % 12.18 % 12.46 %Tier 1 CapitalRatioTier 1 Capital 12.04 11.81 12.18 12.46RatioTotal Capital 13.29 13.06 13.28 13.57RatioTier 1 6.90 7.12 7.25 7.36Leverage RatioTotalShareholders' 6.84 7.16 7.11 7.27Equity toTotal AssetsTangibleCommon Equity 6.69 7.00 6.95 7.10to TangibleAssets ^5TangibleCommon Equity 12.07 11.85 11.85 12.17toRisk-WeightedAssets^ 5 Non-FinancialDataFull-Time 2,112 2,094 2,124 2,152EquivalentEmployeesBranches 67 67 68 68

ATMs 367 382 387 383

^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 ataxable-equivalent basis, as a percentage of average earning assets.^3 Dividend payout ratio is defined as dividends declared per share divided bybasic earnings per share.^4 Regulatory capital ratios as of June 30, 2020 are preliminary. CET 1 / Tier1 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 torisk-weighted assets are Non-GAAP financial measures. See Table 2"Reconciliation of Non-GAAP Financial Measures."

Bank of Hawaii Corporation and SubsidiariesReconciliationof Non-GAAP Table 2FinancialMeasures June 30, March 31, December 31, June 30,

(dollars in 2020 2020 2019 2019thousands) Total $ 1,352,082 $ 1,327,929 $ 1,286,832 $ 1,285,948 Shareholders'EquityLess: Goodwill 31,517 31,517 31,517 31,517

Tangible $ 1,320,565 $ 1,296,412 $ 1,255,315 $ 1,254,431 Common Equity Total Assets $ 19,769,942 $ 18,542,233 $ 18,095,496 $ 17,688,845

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

Tangible $ 19,738,425 $ 18,510,716 $ 18,063,979 $ 17,657,328 Assets Risk-WeightedAssets,determined inaccordance $ 10,941,894 $ 10,944,260 $ 10,589,061 $ 10,309,085 withprescribedregulatoryrequirements TotalShareholders' 6.84 % 7.16 % 7.11 % 7.27 %Equity toTotal AssetsTangibleCommon Equity 6.69 % 7.00 % 6.95 % 7.10 %to TangibleAssets(Non-GAAP) Tier 1 Capital 12.04 % 11.81 % 12.18 % 12.46 %Ratio^TangibleCommon Equityto 12.07 % 11.85 % 11.85 % 12.17 %Risk-WeightedAssets(Non-GAAP)

Note: Risk-Weighted Assets and Regulatory capital ratios as of June 30, 2020are 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 SubsidiariesConsolidatedStatements of Table 3Income Three Months Ended Six Months Ended June 30, March 31, June 30, June 30,(dollars in 2020 2020 2019 2020 2019thousands, exceptper share amounts)Interest IncomeInterest and Fees $ 107,628 $ 108,210 $ 110,401 $ 215,838 $ 218,912 on Loans andLeasesIncome onInvestmentSecuritiesAvailable-for-Sale 14,576 16,711 15,072 31,287 28,504

Held-to-Maturity 16,723 19,252 22,149 35,975 44,070

Deposits 1 9 9 10 24

Funds Sold 92 546 730 638 2,174

Other 125 218 210 343 529

Total Interest 139,145 144,946 148,571 284,091 294,213 IncomeInterest ExpenseDeposits 7,954 14,260 18,628 22,214 33,912

Securities Sold 4,020 4,025 4,623 8,045 9,194 Under Agreementsto RepurchaseFunds Purchased 18 72 512 90 669

Short-Term 22 39 1 61 37 BorrowingsOther Debt 440 584 710 1,024 1,467

Total Interest 12,454 18,980 24,474 31,434 45,279 ExpenseNet Interest 126,691 125,966 124,097 252,657 248,934 IncomeProvision for 40,400 33,600 4,000 74,000 7,000 Credit LossesNet InterestIncome After 86,291 92,366 120,097 178,657 241,934 Provision forCredit LossesNoninterest IncomeTrust and Asset 10,550 10,915 11,385 21,465 22,146 ManagementMortgage Banking 4,278 2,695 3,336 6,973 5,623

Service Charges on 5,097 7,451 7,283 12,548 14,647 Deposit AccountsFees, Exchange, 9,417 13,200 14,252 22,617 28,460 and Other ServiceChargesInvestment 13,216 (970 ) (776 ) 12,246 (1,611 )Securities Gains(Losses), NetAnnuity and 883 928 1,806 1,811 4,384 InsuranceBank-Owned Life 1,649 1,580 1,779 3,229 3,489 InsuranceOther 6,178 10,350 6,385 16,528 11,991

Total Noninterest 51,268 46,149 45,450 97,417 89,129 IncomeNoninterestExpenseSalaries and 50,715 54,463 53,511 105,178 110,097 BenefitsNet Occupancy 8,761 8,955 8,579 17,716 16,173

Net Equipment 8,195 8,456 6,895 16,651 13,728

Data Processing 4,416 4,788 4,727 9,204 9,253

Professional Fees 3,061 3,208 2,177 6,269 4,630

FDIC Insurance 1,558 1,456 1,290 3,014 2,559

Other 12,186 14,986 15,546 27,172 29,342

Total Noninterest 88,892 96,312 92,725 185,204 185,782 ExpenseIncome Before 48,667 42,203 72,822 90,870 145,281 Provision forIncome TaxesProvision for 9,759 7,461 15,903 17,220 29,563 Income TaxesNet Income $ 38,908 $ 34,742 $ 56,919 $ 73,650 $ 115,718

Basic Earnings Per $ 0.98 $ 0.88 $ 1.40 $ 1.86 $ 2.84 ShareDiluted Earnings $ 0.98 $ 0.87 $ 1.40 $ 1.85 $ 2.82 Per ShareDividends Declared $ 0.67 $ 0.67 $ 0.65 $ 1.34 $ 1.27 Per ShareBasic Weighted 39,703,735 39,681,611 40,541,594 39,692,695 40,738,772 Average SharesDiluted Weighted 39,832,475 39,916,986 40,769,767 39,873,334 40,988,001 Average Shares

Bank of Hawaii Corporation and SubsidiariesConsolidated Statements of Comprehensive Income Table 4 Three Months Ended Six Months Ended June 30, March June 30, June 30, 31,

(dollars in thousands) 2020 2020 2019 2020 2019

Net Income $ 38,908 $ 34,742 $ 56,919 $ 73,650 $ 115,718

Other ComprehensiveIncome, Net of Tax:Net Unrealized Gains on 7,730 41,559 16,209 49,289 23,128Investment SecuritiesDefined Benefit Plans 374 374 245 748 491

Other Comprehensive 8,104 41,933 16,454 50,037 23,619IncomeComprehensive Income $ 47,012 $ 76,675 $ 73,373 $ 123,687 $ 139,337

Bank of Hawaii Corporation and SubsidiariesConsolidated Table 5Statements ofCondition June 30, March 31, December 31, June 30,

(dollars in 2020 2020 2019 2019thousands)AssetsInterest-Bearing $ 2,310 $ 6,346 $ 4,979 $ 3,859 Deposits in OtherBanksFunds Sold 800,857 96,898 254,574 204,340

InvestmentSecuritiesAvailable-for-Sale 2,726,478 2,681,049 2,619,003 2,649,949

Held-to-Maturity(Fair Value of$3,374,294; 3,276,829 3,004,139 3,042,294 2,959,611 $3,104,020;$3,062,882; and$2,973,229)Loans Held for Sale 20,711 20,789 39,062 22,706

Loans and Leases 11,805,370 11,352,780 10,990,892 10,759,129

Allowance for (173,439 ) (138,150 ) (110,027 ) (107,672 )Credit LossesNet Loans and 11,631,931 11,214,630 10,880,865 10,651,457 LeasesTotal Earning 18,459,116 17,023,851 16,840,777 16,491,922 AssetsCash and Due from 242,423 453,465 299,105 282,164 BanksPremises and 198,582 196,228 188,388 169,671 Equipment, NetOperating Lease 97,166 98,695 100,838 103,336 Right-of-Use AssetsAccrued Interest 50,645 46,996 46,476 49,726 ReceivableForeclosed Real 2,506 2,506 2,737 2,737 EstateMortgage Servicing 22,904 22,537 25,022 24,233 RightsGoodwill 31,517 31,517 31,517 31,517

Bank-Owned Life 291,185 289,536 287,962 285,295 InsuranceOther Assets 373,898 376,902 272,674 248,244

Total Assets $ 19,769,942 $ 18,542,233 $ 18,095,496 $ 17,688,845

LiabilitiesDepositsNoninterest-Bearing $ 5,485,015 $ 4,378,918 $ 4,489,525 $ 4,528,251 DemandInterest-Bearing 3,437,654 3,261,101 3,127,205 3,033,066 DemandSavings 6,821,710 6,670,530 6,365,321 6,004,528

Time 1,678,776 1,744,812 1,802,431 1,922,976

Total Deposits 17,423,155 16,055,361 15,784,482 15,488,821

Funds Purchased - 75,000 - -

Short-Term - 75,000 - - BorrowingsSecurities Sold 603,206 603,206 604,306 504,299 Under Agreements toRepurchaseOther Debt 60,524 60,545 85,565 110,605

Operating Lease 104,741 106,180 108,210 110,483 LiabilitiesRetirement Benefits 43,833 44,124 44,504 40,047 PayableAccrued Interest 7,775 7,932 8,040 9,454 PayableTaxes Payable and 38,297 32,793 16,085 21,337 Deferred TaxesOther Liabilities 136,329 154,163 157,472 117,851

Total Liabilities 18,417,860 17,214,304 16,808,664 16,402,897

Shareholders'EquityCommon Stock ($.01par value;authorized500,000,000 shares;issued /outstanding: June30, 2020 -58,263,452 /40,047,694; March 580 579 579 579 31, 2020 -58,251,725 /39,996,510;December 31, 2019 -58,166,910 /40,039,695; andJune 30, 2019 -58,175,367 /40,687,719)Capital Surplus 586,946 584,392 582,566 577,346

Accumulated Other 18,925 10,821 (31,112 ) (27,424 )Comprehensive Gain(Loss)Retained Earnings 1,786,351 1,773,607 1,761,415 1,704,993

Treasury Stock, atCost (Shares: June30, 2020 -18,215,758; March31, 2020 - (1,040,720 ) (1,041,470 ) (1,026,616 ) (969,546 )18,255,215;December 31, 2019 -18,127,215; andJune 30, 2019 -17,487,648)Total Shareholders' 1,352,082 1,327,929 1,286,832 1,285,948 EquityTotal Liabilities $ 19,769,942 $ 18,542,233 $ 18,095,496 $ 17,688,845 and Shareholders'Equity

Bank of Hawaii Corporation and SubsidiariesConsolidated 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 40,039,695 $ 579 $ 582,566 $ (31,112 ) $ 1,761,415 $ (1,026,616 ) $ 1,286,832 December 31,2019Net Income - - - - 73,650 - 73,650

Other - - - 50,037 - - 50,037 ComprehensiveIncomeCumulativeChange in - - - - 3,632 - 3,632 AccountingPrincipleShare-Based - - 3,704 - - - 3,704 CompensationCommon StockIssued underPurchase andEquityCompensation 195,351 1 676 - 1,333 3,041 5,051 PlansCommon Stock (187,352 ) - - - - (17,145 ) (17,145 )RepurchasedCashDividends - - - - (53,679 ) - (53,679 )Declared($1.34 pershare)Balance as of 40,047,694 $ 580 $ 586,946 $ 18,925 $ 1,786,351 $ (1,040,720 ) $ 1,352,082 June 30, 2020 Balance as of 41,499,898 $ 577 $ 571,704 $ (51,043 ) $ 1,641,314 $ (894,352 ) $ 1,268,200 December 31,2018Net Income - - - - 115,718 - 115,718

Other - - - 23,619 - - 23,619 ComprehensiveIncomeShare-Based - - 4,438 - - - 4,438 CompensationCommon StockIssued underPurchase andEquityCompensation 174,709 2 1,204 - 162 2,981 4,349 PlansCommon Stock (986,888 ) - - - - (78,175 ) (78,175 )RepurchasedCashDividends - - - - (52,201 ) - (52,201 )Declared($1.27 pershare)Balance as of 40,687,719 $ 579 $ 577,346 $ (27,424 ) $ 1,704,993 $ (969,546 ) $ 1,285,948 June 30, 2019

Bank of Hawaii Corporation and SubsidiariesAverage Balances and Interest Rates - TableTaxable-Equivalent Basis 7a Three Months Ended Three Months Ended Three Months Ended June 30, 2020 March 31, 2020 June 30, 2019 Average Income/ Yield Average Income/ Yield Average Income/ Yield / / /(dollars in Balance Expense Rate Balance Expense Rate Balance Expense Ratemillions)Earning AssetsInterest-Bearing $ 2.6 $ - 0.18 % $ 1.4 $ - 2.36 % $ 2.9 $ - 1.25 %Deposits in OtherBanksFunds Sold 545.9 0.1 0.07 152.8 0.6 1.41 123.6 0.8 2.34

InvestmentSecuritiesAvailable-for-SaleTaxable 2,614.1 14.3 2.19 2,702.4 16.4 2.43 2,004.3 14.3 2.87

Non-Taxable 32.2 0.4 4.45 32.4 0.4 4.40 86.8 0.9 4.15

Held-to-MaturityTaxable 2,957.6 16.4 2.22 3,036.2 18.9 2.50 3,358.0 21.0 2.50

Non-Taxable 54.4 0.4 2.66 54.7 0.4 2.67 193.0 1.5 3.08

Total Investment 5,658.3 31.5 2.22 5,825.7 36.1 2.48 5,642.1 37.7 2.68SecuritiesLoans Held for Sale 23.4 0.2 3.24 23.2 0.2 3.54 18.7 0.2 4.05

Loans and Leases ^1Commercial and 1,963.8 17.9 3.67 1,409.3 13.2 3.77 1,385.7 14.9 4.31IndustrialCommercial Mortgage 2,622.9 22.3 3.42 2,549.4 25.1 3.96 2,386.3 25.9 4.35

Construction 255.8 2.5 3.93 213.2 2.5 4.65 125.3 1.7 5.51

Commercial Lease 110.9 0.5 1.88 111.4 0.5 1.95 159.9 1.0 2.49FinancingResidential 3,939.6 36.0 3.65 3,895.4 36.9 3.79 3,730.4 36.0 3.87MortgageHome Equity 1,665.2 14.3 3.45 1,680.2 15.2 3.64 1,694.9 16.2 3.83

Automobile 701.2 6.2 3.55 721.0 6.4 3.56 688.5 6.2 3.62

Other ^2 468.2 7.9 6.77 480.8 8.4 7.06 460.6 8.4 7.33

Total Loans and 11,727.6 107.6 3.68 11,060.7 108.2 3.93 10,631.6 110.3 4.16LeasesOther 34.0 0.1 1.47 34.3 0.2 2.54 35.0 0.2 2.40

Total Earning 17,991.8 139.5 3.11 17,098.1 145.3 3.41 16,453.9 149.2 3.63Assets ^3Cash and Due from 302.4 278.8 241.6BanksOther Assets 895.4 845.7 785.2

Total Assets $ 19,189.6 $ 18,222.6 $ 17,480.7

Interest-BearingLiabilitiesInterest-BearingDepositsDemand $ 3,226.6 0.6 0.07 $ 3,110.0 1.0 0.12 $ 2,902.5 1.4 0.19

Savings 6,691.4 2.2 0.13 6,502.4 7.1 0.44 6,002.0 8.9 0.60

Time 1,826.8 5.2 1.13 1,743.0 6.2 1.43 1,866.6 8.3 1.79

Total 11,744.8 8.0 0.27 11,355.4 14.3 0.51 10,771.1 18.6 0.69Interest-BearingDepositsShort-Term 57.6 - 0.28 57.8 0.1 0.76 82.3 0.5 2.46BorrowingsSecurities Sold 602.9 4.0 2.64 604.1 4.0 2.64 504.3 4.7 3.63Under Agreements toRepurchaseOther Debt 60.5 0.5 2.91 66.9 0.6 3.51 110.6 0.7 2.57

Total 12,465.8 12.5 0.40 12,084.2 19.0 0.63 11,468.3 24.5 0.85Interest-BearingLiabilitiesNet Interest Income $ 127.0 $ 126.3 $ 124.7

Interest Rate 2.71 % 2.78 % 2.78 %SpreadNet Interest Margin 2.83 % 2.96 % 3.04 %

Noninterest-Bearing 4,934.7 4,462.3 4,391.7Demand DepositsOther Liabilities 437.8 362.3 350.5

Shareholders' 1,351.3 1,313.8 1,270.2EquityTotal Liabilities $ 19,189.6 $ 18,222.6 $ 17,480.7and Shareholders'Equity

^1 Non-performing loans and leases are included in the respective average loanand lease balances. Income, if any, on such loans and leases is recognized on acash basis.^2 Comprised of other consumer revolving credit, installment, and consumerlease financing.^3 Interest income includes taxable-equivalent basis adjustments, based upon afederal statutory tax rate of 21%, of $358,000, $357,000, and $601,000 for thethree months ended June 30, 2020, March 31, 2020, and June 30, 2019,respectively.

Bank of Hawaii Corporation and SubsidiariesAverage Balances and Interest Rates - TableTaxable-Equivalent Basis 7b Six Months Ended Six Months Ended June 30, 2020 June 30, 2019 Average Income/ Yield Average Income/ Yield / /(dollars in Balance Expense Rate Balance Expense Ratemillions)Earning AssetsInterest-Bearing $ 2.0 $ - 0.96 % $ 2.9 $ - 1.65 %Deposits in OtherBanksFunds Sold 349.3 0.6 0.36 182.3 2.2 2.37

InvestmentSecuritiesAvailable-for-SaleTaxable 2,658.3 30.8 2.31 1,801.2 25.9 2.88

Non-Taxable 32.3 0.7 4.43 182.5 3.3 3.63

Held-to-MaturityTaxable 2,996.9 35.4 2.36 3,365.7 41.5 2.46

Non-Taxable 54.5 0.7 2.67 213.4 3.3 3.12

Total Investment 5,742.0 67.6 2.35 5,562.8 74.0 2.66SecuritiesLoans Held for Sale 23.3 0.4 3.39 15.6 0.3 4.16

Loans and Leases ^1Commercial and 1,686.5 31.1 3.71 1,371.8 30.2 4.43IndustrialCommercial Mortgage 2,586.2 47.4 3.69 2,348.6 50.7 4.36

Construction 234.6 5.0 4.26 137.8 3.6 5.27

Commercial Lease 111.1 1.1 1.91 160.4 1.9 2.38FinancingResidential 3,917.5 72.9 3.72 3,705.4 71.5 3.86MortgageHome Equity 1,672.7 29.5 3.55 1,692.5 32.3 3.85

Automobile 711.1 12.6 3.56 678.4 12.3 3.64

Other ^2 474.5 16.3 6.92 455.0 16.3 7.23

Total Loans and 11,394.2 215.9 3.80 10,549.9 218.8 4.17LeasesOther 34.2 0.3 2.01 35.2 0.5 3.00

Total Earning 17,545.0 284.8 3.26 16,348.7 295.8 3.63Assets ^3Cash and Due from 290.6 241.2BanksOther Assets 870.5 769.1

Total Assets $ 18,706.1 $ 17,359.0

Interest-BearingLiabilitiesInterest-BearingDepositsDemand $ 3,168.3 1.5 0.10 $ 2,921.1 2.8 0.20

Savings 6,596.9 9.3 0.28 5,882.1 15.7 0.54

Time 1,784.9 11.4 1.28 1,785.4 15.4 1.74

Total 11,550.1 22.2 0.39 10,588.6 33.9 0.65Interest-BearingDepositsShort-Term 57.7 0.2 0.52 56.8 0.7 2.47BorrowingsSecurities Sold 603.5 8.0 2.64 504.3 9.2 3.63Under Agreements toRepurchaseOther Debt 63.7 1.0 3.23 115.3 1.5 2.56

Total 12,275.0 31.4 0.51 11,265.0 45.3 0.81Interest-BearingLiabilitiesNet Interest Income $ 253.4 $ 250.5

Interest Rate 2.75 % 2.82 %SpreadNet Interest Margin 2.90 % 3.08 %

Noninterest-Bearing 4,698.5 4,479.0Demand DepositsOther Liabilities 400.0 346.2

Shareholders' 1,332.6 1,268.8EquityTotal Liabilities $ 18,706.1 $ 17,359.0and Shareholders'Equity

^1 Non-performing loans and leases are included in the respective average loanand lease balances. Income, if any, on such loans and leases is recognized on acash basis.^2 Comprised of other consumer revolving credit, installment, and consumerlease financing.^3 Interest income includes taxable-equivalent basis adjustments, based upon afederal statutory tax rate of 21%, of $715,000 and $1,582,000 for the sixmonths ended June 30, 2020 and June 30, 2019, respectively.

Bank of Hawaii Corporation and SubsidiariesAnalysis of Change in Net Interest Income - Table 8aTaxable-Equivalent Basis Three Months Ended June 30, 2020 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 (0.5 ) (1.6 ) (2.1 )

Held-to-MaturityTaxable (0.5 ) (2.0 ) (2.5 )

Total Investment Securities (1.0 ) (3.6 ) (4.6 )

Loans and LeasesCommercial and Industrial 5.1 (0.4 ) 4.7

Commercial Mortgage 0.7 (3.5 ) (2.8 )

Construction 0.4 (0.4 ) -

Residential Mortgage 0.4 (1.3 ) (0.9 )

Home Equity (0.1 ) (0.8 ) (0.9 )

Automobile (0.2 ) - (0.2 )

Other ^2 (0.2 ) (0.3 ) (0.5 )

Total Loans and Leases 6.1 (6.7 ) (0.6 )

Other - (0.1 ) (0.1 )

Total Change in Interest Income 5.5 (11.3 ) (5.8 )

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

Savings 0.2 (5.1 ) (4.9 )

Time 0.3 (1.3 ) (1.0 )

Total Interest-Bearing Deposits 0.5 (6.8 ) (6.3 )

Short-Term Borrowings - (0.1 ) (0.1 )

Other Debt (0.1 ) - (0.1 )

Total Change in Interest Expense 0.4 (6.9 ) (6.5 )

Change in Net Interest Income $ 5.1 $ (4.4 ) $ 0.7

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

Bank of Hawaii Corporation and SubsidiariesAnalysis of Change in Net Interest Income - Table 8bTaxable-Equivalent Basis Three Months Ended June 30, 2020 Compared to June 30, 2019(dollars in millions) Volume ^ Rate ^1 Total 1Change in Interest Income:Funds Sold $ 0.6 $ (1.3 ) $ (0.7 )

Investment SecuritiesAvailable-for-SaleTaxable 3.8 (3.8 ) -

Non-Taxable (0.6 ) 0.1 (0.5 )

Held-to-MaturityTaxable (2.4 ) (2.2 ) (4.6 )

Non-Taxable (0.9 ) (0.2 ) (1.1 )

Total Investment Securities (0.1 ) (6.1 ) (6.2 )

Loans and LeasesCommercial and Industrial 5.5 (2.5 ) 3.0

Commercial Mortgage 2.3 (5.9 ) (3.6 )

Construction 1.4 (0.6 ) 0.8

Commercial Lease Financing (0.3 ) (0.2 ) (0.5 )

Residential Mortgage 2.0 (2.0 ) -

Home Equity (0.3 ) (1.6 ) (1.9 )

Automobile 0.1 (0.1 ) -

Other ^2 0.1 (0.6 ) (0.5 )

Total Loans and Leases 10.8 (13.5 ) (2.7 )

Other - (0.1 ) (0.1 )

Total Change in Interest Income 11.3 (21.0 ) (9.7 )

Change in Interest Expense:Interest-Bearing DepositsDemand 0.1 (0.9 ) (0.8 )

Savings 0.9 (7.6 ) (6.7 )

Time (0.1 ) (3.0 ) (3.1 )

Total Interest-Bearing Deposits 0.9 (11.5 ) (10.6 )

Short-Term Borrowings (0.1 ) (0.4 ) (0.5 )

Securities Sold Under Agreements to Repurchase 0.8 (1.5 ) (0.7 )

Other Debt (0.4 ) 0.2 (0.2 )

Total Change in Interest Expense 1.2 (13.2 ) (12.0 )

Change in Net Interest Income $ 10.1 $ (7.8 ) $ 2.3

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

Bank of Hawaii Corporation and SubsidiariesAnalysis of Change in Net Interest Income - Table 8cTaxable-Equivalent Basis Six Months Ended June 30, 2020 Compared to June 30, 2019(dollars in millions) Volume ^ Rate ^1 Total 1Change in Interest Income:Funds Sold $ 1.1 $ (2.7 ) $ (1.6 )

Investment SecuritiesAvailable-for-SaleTaxable 10.7 (5.8 ) 4.9

Non-Taxable (3.2 ) 0.6 (2.6 )

Held-to-MaturityTaxable (4.4 ) (1.7 ) (6.1 )

Non-Taxable (2.2 ) (0.4 ) (2.6 )

Total Investment Securities 0.9 (7.3 ) (6.4 )

Loans Held for Sale 0.1 - 0.1

Loans and LeasesCommercial and Industrial 6.3 (5.4 ) 0.9

Commercial Mortgage 4.9 (8.2 ) (3.3 )

Construction 2.2 (0.8 ) 1.4

Commercial Lease Financing (0.5 ) (0.3 ) (0.8 )

Residential Mortgage 4.0 (2.6 ) 1.4

Home Equity (0.4 ) (2.4 ) (2.8 )

Automobile 0.6 (0.3 ) 0.3

Other ^2 0.7 (0.7 ) -

Total Loans and Leases 17.8 (20.7 ) (2.9 )

Other - (0.2 ) (0.2 )

Total Change in Interest Income 19.9 (30.9 ) (11.0 )

Change in Interest Expense:Interest-Bearing DepositsDemand 0.2 (1.5 ) (1.3 )

Savings 1.7 (8.1 ) (6.4 )

Time - (4.0 ) (4.0 )

Total Interest-Bearing Deposits 1.9 (13.6 ) (11.7 )

Short-Term Borrowings - (0.5 ) (0.5 )

Securities Sold Under Agreements to Repurchase 1.6 (2.8 ) (1.2 )

Other Debt (0.8 ) 0.3 (0.5 )

Total Change in Interest Expense 2.7 (16.6 ) (13.9 )

Change in Net Interest Income $ 17.2 $ (14.3 ) $ 2.9

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

Bank of Hawaii Corporation and SubsidiariesSalaries and Benefits Table 9 Three Months Ended Six Months Ended June 30, March June 30, June 30, 31,(dollars in thousands) 2020 2020 2019 2020 2019

Salaries $ 32,739 $ 33,486 $ 32,834 $ 66,225 $ 65,314

Incentive Compensation 3,141 245 5,464 3,386 11,368

Share-Based Compensation 2,021 1,291 1,994 3,312 5,073

Commission Expense 1,647 1,374 1,704 3,021 2,634

Retirement and Other 4,446 4,706 4,580 9,152 9,687BenefitsPayroll Taxes 2,782 4,543 2,643 7,325 6,890

Medical, Dental, and Life 3,830 4,142 3,926 7,972 8,391InsuranceSeparation Expense 109 4,676 366 4,785 740

Total Salaries and $ 50,715 $ 54,463 $ 53,511 $ 105,178 $ 110,097Benefits

Bank of Hawaii Corporation and SubsidiariesLoan and Lease Portfolio Table 10Balances June 30, March 31, December 31, September June 30, 30,

(dollars in 2020 2020 2019 2019 2019thousands)CommercialCommercial $ 1,956,939 $ 1,558,232 $ 1,379,152 $ 1,361,011 $ 1,408,729andIndustrialCommercial 2,707,534 2,616,243 2,518,051 2,477,296 2,411,289MortgageConstruction 245,099 245,390 194,170 154,754 119,228

Lease 113,187 110,704 122,454 163,672 163,070FinancingTotal 5,022,759 4,530,569 4,213,827 4,156,733 4,102,316CommercialConsumerResidential 3,989,393 3,928,183 3,891,100 3,846,511 3,785,006MortgageHome Equity 1,640,887 1,692,154 1,676,073 1,681,951 1,694,577

Automobile 700,702 716,214 720,286 713,424 703,523

Other ^1 451,629 485,660 489,606 482,679 473,707

Total 6,782,611 6,822,211 6,777,065 6,724,565 6,656,813ConsumerTotal Loans $ 11,805,370 $ 11,352,780 $ 10,990,892 $ 10,881,298 $ 10,759,129and Leases Deposits June 30, March 31, December 31, September June 30, 30,

(dollars in 2020 2020 2019 2019 2019thousands)Consumer $ 8,766,885 $ 8,294,464 $ 8,118,494 $ 7,893,454 $ 7,880,284

Commercial 7,295,033 6,358,583 6,324,214 6,153,492 6,178,984

Public and 1,361,237 1,402,314 1,341,774 1,293,806 1,429,553OtherTotal $ 17,423,155 $ 16,055,361 $ 15,784,482 $ 15,340,752 $ 15,488,821Deposits

^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 Table 11Days or More June 30, March 31, December 31, September 30, June 30,

(dollars in 2020 2020 2019 2019 2019thousands)Non-PerformingAssetsNon-AccrualLoans andLeasesCommercialCommercial and $ 459 $ 634 $ 830 $ 573 $ 552 IndustrialCommercial 8,672 9,048 9,244 11,088 11,310 MortgageTotal 9,131 9,682 10,074 11,661 11,862 CommercialConsumerResidential 5,888 4,330 4,125 4,258 4,697 MortgageHome Equity 5,176 4,086 3,181 2,787 2,486

Total Consumer 11,064 8,416 7,306 7,045 7,183

TotalNon-Accrual 20,195 18,098 17,380 18,706 19,045 Loans andLeasesForeclosed 2,506 2,506 2,737 2,939 2,737 Real EstateTotal $ 22,701 $ 20,604 $ 20,117 $ 21,645 $ 21,782 Non-PerformingAssets Accruing Loansand LeasesPast Due 90Days or MoreCommercialCommercial and $ - $ - $ - $ 81 $ - IndustrialTotal - - - 81 - CommercialConsumerResidential 4,937 3,024 1,839 2,032 1,859 MortgageHome Equity 3,519 3,426 4,125 2,320 2,981

Automobile 133 866 949 582 607

Other^ 1 296 1,205 1,493 1,076 963

Total Consumer 8,885 8,521 8,406 6,010 6,410

Total AccruingLoans and $ 8,885 $ 8,521 $ 8,406 $ 6,091 $ 6,410 Leases PastDue 90 Days orMoreRestructuredLoans onAccrual Status $ 59,713 $ 61,425 $ 63,103 $ 46,178 $ 48,563 and Not PastDue 90 Days orMoreTotal Loans $ 11,805,370 $ 11,352,780 $ 10,990,892 $ 10,881,298 $ 10,759,129 and Leases Ratio ofNon-AccrualLoans and 0.17 % 0.16 % 0.16 % 0.17 % 0.18 %Leases toTotal Loansand Leases Ratio ofNon-PerformingAssets to 0.19 % 0.18 % 0.18 % 0.20 % 0.20 %Total Loansand Leases andForeclosedReal Estate Ratio ofCommercialNon-PerformingAssets toTotal 0.18 % 0.21 % 0.24 % 0.28 % 0.29 %CommercialLoans andLeases andCommercialForeclosedReal Estate Ratio ofConsumerNon-PerformingAssets toTotal Consumer 0.20 % 0.16 % 0.15 % 0.15 % 0.15 %Loans andLeases andConsumerForeclosedReal Estate Ratio ofNon-PerformingAssets andAccruing Loansand Leases 0.27 % 0.26 % 0.26 % 0.25 % 0.26 %Past Due 90Days or Moreto Total Loansand Leases andForeclosedReal Estate Quarter toQuarterChanges inNon-PerformingAssetsBalance at 20,604 $ 20,117 $ 21,645 $ 21,782 $ 17,925 Beginning ofQuarterAdditions 5,856 1,754 883 1,035 6,186

ReductionsPayments (2,736 ) (315 ) (495 ) (984 ) (441 )

Return to (822 ) (437 ) (1,673 ) - (1,344 )Accrual StatusSales of - (231 ) (201 ) - (374 )ForeclosedReal EstateCharge-offs/ (201 ) (284 ) (42 ) (188 ) (170 )Write-downsTotal (3,759 ) (1,267 ) (2,411 ) (1,172 ) (2,329 )ReductionsBalance at End $ 22,701 $ 20,604 $ 20,117 $ 21,645 $ 21,782 of Quarter

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

Bank of Hawaii Corporation and SubsidiariesReserve forCredit Table 12Losses Three Months Ended Six Months Ended June 30, March 31, June 30, June 30,(dollars in 2020 2020 2019 2020 2019thousands)Balance at $ 141,467 $ 116,849 112,845 $ 116,849 113,515 Beginning ofPeriodCECLAdoption - (5,072 ) - (5,072 ) - (Day 1)ImpactLoans andLeasesCharged-OffCommercialCommercial (656 ) (693 ) (206 ) (1,349 ) (576 )andIndustrialCommercial - - - - (1,616 )MortgageConsumerResidential (64 ) (20 ) (51 ) (84 ) (55 )MortgageHome Equity (273 ) - (145 ) (273 ) (440 )

Automobile (3,114 ) (2,500 ) (1,691 ) (5,614 ) (3,444 )

Other ^1 (4,176 ) (3,964 ) (3,036 ) (8,140 ) (5,826 )

Total Loans (8,283 ) (7,177 ) (5,129 ) (15,460 ) (11,957 )and LeasesCharged-OffRecoverieson Loans andLeasesPreviouslyCharged-OffCommercialCommercial 1,524 289 401 1,813 902 andIndustrialCommercial - 40 - 40 - MortgageConsumerResidential 118 263 95 381 579 MortgageHome Equity 321 976 746 1,297 1,334

Automobile 547 1,005 908 1,552 1,789

Other ^1 662 864 628 1,526 1,332

TotalRecoverieson Loans and 3,172 3,437 2,778 6,609 5,936 LeasesPreviouslyCharged-OffNet Loans (5,111 ) (3,740 ) (2,351 ) (8,851 ) (6,021 )and LeasesCharged-OffProvision 40,400 33,600 4,000 74,000 7,000 for CreditLossesProvision (798 ) (170 ) - (968 ) - for UnfundedCommitmentsBalance at $ 175,958 $ 141,467 $ 114,494 $ 175,958 $ 114,494 End ofPeriod ^2 ComponentsAllowance $ 173,439 $ 138,150 $ 107,672 $ 173,439 $ 107,672 for CreditLossesReserve for 2,519 3,317 6,822 2,519 6,822 UnfundedCommitmentsTotalReserve for $ 175,958 $ 141,467 $ 114,494 $ 175,958 $ 114,494 CreditLosses AverageLoans and $ 11,727,649 $ 11,060,707 $ 10,631,558 $ 11,394,178 $ 10,549,893 LeasesOutstanding Ratio of NetLoans andLeasesCharged-OfftoAverageLoans and 0.18 % 0.14 % 0.09 % 0.16 % 0.12 %LeasesOutstanding(annualized)Ratio ofAllowancefor Credit 1.47 % 1.22 % 1.00 % 1.47 % 1.00 %Losses toLoans andLeasesOutstanding

^1 Comprised of other revolving credit, installment, and lease financing.^2 Included in this analysis is activity related to the Company's reserve forunfunded commitments, which is separately recorded in other liabilities in theConsolidated Statements of Condition.

Bank of Hawaii Corporation and SubsidiariesBusiness SegmentsSelected Financial Table 13aInformation Consumer Commercial Treasury Consolidated(dollars in Banking Banking and Other Totalthousands)Three Months EndedJune 30, 2020Net Interest $ 73,221 $ 51,219 $ 2,251 $ 126,691 IncomeProvision for 6,137 (1,025 ) 35,288 40,400 Credit LossesNet InterestIncome (Loss) 67,084 52,244 (33,037 ) 86,291 After Provisionfor Credit LossesNoninterest Income 28,943 7,076 15,249 51,268

Noninterest (70,744 ) (14,776 ) (3,372 ) (88,892 )ExpenseIncome (Loss) 25,283 44,544 (21,160 ) 48,667 Before Provisionfor Income TaxesProvision for (6,451 ) (10,940 ) 7,632 (9,759 )Income TaxesNet Income (Loss) $ 18,832 $ 33,604 $ (13,528 ) $ 38,908

Total Assets as of $ 7,416,337 $ 5,033,297 $ 7,320,308 $ 19,769,942 June 30, 2020 Three Months EndedJune 30, 2019^ 1Net Interest $ 77,063 $ 45,703 $ 1,331 $ 124,097 IncomeProvision for 2,526 (175 ) 1,649 4,000 Credit LossesNet InterestIncome (Loss) 74,537 45,878 (318 ) 120,097 After Provisionfor Credit LossesNoninterest Income 35,967 6,938 2,545 45,450

Noninterest (68,543 ) (21,260 ) (2,922 ) (92,725 )ExpenseIncome (Loss) 41,961 31,556 (695 ) 72,822 Before Provisionfor Income TaxesProvision for (10,405 ) (7,945 ) 2,447 (15,903 )Income TaxesNet Income $ 31,556 $ 23,611 $ 1,752 $ 56,919

Total Assets as of $ 6,924,338 $ 4,089,452 $ 6,675,055 $ 17,688,845 June 30, 2019 ^1

^1 Certain prior period information has been reclassified to conform to currentpresentation.

Bank of Hawaii Corporation and SubsidiariesBusiness SegmentsSelected Financial Table 13bInformation Consumer Commercial Treasury Consolidated(dollars in Banking Banking and Other Totalthousands)Six Months EndedJune 30, 2020^ 1Net Interest $ 147,135 $ 96,456 $ 9,066 $ 252,657 IncomeProvision for 9,588 (735 ) 65,147 74,000 Credit LossesNet InterestIncome (Loss) 137,547 97,191 (56,081 ) 178,657 After Provisionfor Credit LossesNoninterest Income 61,533 18,811 17,073 97,417

Noninterest (141,644 ) (32,122 ) (11,438 ) (185,204 )ExpenseIncome (Loss) 57,436 83,880 (50,446 ) 90,870 Before Provisionfor Income TaxesProvision for (14,527 ) (20,494 ) 17,801 (17,220 )Income TaxesNet Income (Loss) $ 42,909 $ 63,386 $ (32,645 ) $ 73,650

Total Assets as of $ 7,416,337 $ 5,033,297 $ 7,320,308 $ 19,769,942 June 30, 2020 Six Months EndedJune 30, 2019^ 1Net Interest $ 153,415 $ 92,993 $ 2,526 $ 248,934 IncomeProvision for 4,750 1,271 979 7,000 Credit LossesNet InterestIncome After 148,665 91,722 1,547 241,934 Provision forCredit LossesNoninterest Income 70,445 13,999 4,685 89,129

Noninterest (137,970 ) (42,215 ) (5,597 ) (185,782 )ExpenseIncome Before 81,140 63,506 635 145,281 Provision forIncome TaxesProvision for (20,239 ) (13,947 ) 4,623 (29,563 )Income TaxesNet Income $ 60,901 $ 49,559 $ 5,258 $ 115,718

Total Assets as of $ 6,924,338 $ 4,089,452 $ 6,675,055 $ 17,688,845 June 30, 2019 ^1

^1 Certain prior period information has been reclassified to conform to currentpresentation.

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

(dollars in 2020 2020 2019 2019 2019thousands, exceptper share amounts)QuarterlyOperating ResultsInterest IncomeInterest and Fees $ 107,628 $ 108,210 $ 109,223 $ 110,877 $ 110,401 on Loans andLeasesIncome onInvestmentSecuritiesAvailable-for-Sale 14,576 16,711 16,158 17,512 15,072

Held-to-Maturity 16,723 19,252 18,750 18,796 22,149

Deposits 1 9 8 9 9

Funds Sold 92 546 723 656 730

Other 125 218 239 233 210

Total Interest 139,145 144,946 145,101 148,083 148,571 IncomeInterest ExpenseDeposits 7,954 14,260 16,407 18,055 18,628

Securities Sold 4,020 4,025 4,071 4,257 4,623 Under Agreementsto RepurchaseFunds Purchased 18 72 25 146 512

Short-Term 22 39 - 1 1 BorrowingsOther Debt 440 584 713 728 710

Total Interest 12,454 18,980 21,216 23,187 24,474 ExpenseNet Interest 126,691 125,966 123,885 124,896 124,097 IncomeProvision for 40,400 33,600 4,750 4,250 4,000 Credit LossesNet InterestIncome After 86,291 92,366 119,135 120,646 120,097 Provision forCredit LossesNoninterest IncomeTrust and Asset 10,550 10,915 11,157 10,930 11,385 ManagementMortgage Banking 4,278 2,695 3,199 4,864 3,336

Service Charges on 5,097 7,451 7,835 7,592 7,283 Deposit AccountsFees, Exchange, 9,417 13,200 14,533 14,900 14,252 and Other ServiceChargesInvestment 13,216 (970 ) (906 ) (1,469 ) (776 )Securities Gains(Losses), NetAnnuity and 883 928 1,272 1,278 1,806 InsuranceBank-Owned Life 1,649 1,580 1,879 1,647 1,779 InsuranceOther 6,178 10,350 8,733 6,765 6,385

Total Noninterest 51,268 46,149 47,702 46,507 45,450 IncomeNoninterestExpenseSalaries and 50,715 54,463 51,664 54,345 53,511 BenefitsNet Occupancy 8,761 8,955 8,824 8,803 8,579

Net Equipment 8,195 8,456 7,930 7,637 6,895

Data Processing 4,416 4,788 4,828 4,676 4,727

Professional Fees 3,061 3,208 3,257 2,184 2,177

FDIC Insurance 1,558 1,456 1,376 1,257 1,290

Other 12,186 14,986 15,217 21,447 15,546

Total Noninterest 88,892 96,312 93,096 100,349 92,725 ExpenseIncome Before 48,667 42,203 73,741 66,804 72,822 Provision forIncome TaxesProvision for 9,759 7,461 15,598 14,752 15,903 Income TaxesNet Income $ 38,908 $ 34,742 $ 58,143 $ 52,052 $ 56,919

Basic Earnings Per $ 0.98 $ 0.88 $ 1.46 $ 1.30 $ 1.40 ShareDiluted Earnings $ 0.98 $ 0.87 $ 1.45 $ 1.29 $ 1.40 Per Share Balance SheetTotalsLoans and Leases $ 11,805,370 $ 11,352,780 $ 10,990,892 $ 10,881,298 $ 10,759,129

Total Assets 19,769,942 18,542,233 18,095,496 17,672,140 17,688,845

Total Deposits 17,423,155 16,055,361 15,784,482 15,340,752 15,488,821

Total 1,352,082 1,327,929 1,286,832 1,291,490 1,285,948 Shareholders'Equity Performance RatiosReturn on Average 0.82 % 0.77 % 1.29 % 1.17 % 1.31 %AssetsReturn on Average 11.58 10.64 17.84 16.02 17.97 Shareholders'EquityEfficiency Ratio ^ 49.95 55.96 54.26 58.55 54.69 1Net Interest 2.83 2.96 2.95 3.01 3.04 Margin ^2

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

Bank of Hawaii Corporation and SubsidiariesHawaii TableEconomic 15Trends Five Months Ended Year Ended($ inmillions; May 31, 2020 December 31, 2019 December 31, 2018jobs inthousands)HawaiiEconomicTrendsState $ 2,687.4 (16.0 ) % $ 7,316.5 5.5 % $ 6,933.1 6.9 %General FundRevenues^ 1GeneralExcise and $ 1,428.0 (8.0 ) % $ 3,602.2 5.1 % $ 3,426.5 2.3 %Use TaxRevenue^ 1Jobs ^2 479.6 648.9 649.9

June December 31, 30,(spot rates) 2020 2019 2018

Unemployment^ 3Statewide, 13.9 % 2.7 % 2.6 %seasonallyadjusted Oahu 12.5 2.1 2.2

Island of 13.7 2.8 2.9 HawaiiMaui 22.6 2.2 2.2

Kauai 20.2 2.4 2.3

June 30, December 31,(percentagechange, 2020 2019 2018 2017exceptmonths ofinventory)HousingTrends(SingleFamily Oahu)^4Median Home 1.3 % (0.1 ) % 4.6 % 2.7 %PriceHome Sales (4.8 ) % 3.9 % (7.7 ) % 6.3 %Volume(units)Months of 2.5 2.5 2.8 2.1 Inventory Monthly Visitor Percentage Change Arrivals,(in Not Seasonally Adjusted from Previous Yearthousands)Tourism ^5May 31, 2020 9.1 (98.9 )

April 30, 4.6 (99.5 )2020March 31, 434.9 (53.7 )2020February 29, 828.1 5.8 2020January 31, 862.6 5.1 2020December 31, 954.3 6.0 2019November 30, 811.4 4.2 2019October 31, 800.4 4.8 2019September 741.3 3.5 30, 2019August 31, 928.2 9.8 2019July 31, 997.9 6.2 2019June 30, 951.6 6.1 2019May 31, 2019 841.4 4.6

April 30, 856.3 6.6 2019March 31, 939.1 3.9 2019February 28, 782.7 0.5 2019January 31, 820.6 3.0 2019December 31, 900.2 2.3 2018November 30, 778.5 3.9 2018October 31, 763.7 3.5 2018September 716.1 2.2 30, 2018August 31, 845.1 3.2 2018July 31, 939.4 5.3 2018June 30, 897.1 7.3 2018May 31, 2018 804.1 7.0

April 30, 803.0 6.6 2018March 31, 903.6 12.5 2018February 28, 778.6 10.3 2018January 31, 796.5 5.4 2018

^1 Source: Hawaii Department of Business, Economic Development & Tourism^2 Source: U. S. Bureau of Labor Statistics^3 Source: Hawaii Department of Labor and Industrial Relations, County jobsdata not seasonally adjusted.^4 Source: Honolulu Board of REALTORS^5 Source: Hawaii Tourism Authority

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CONTACT: Media Inquiries Stafford Kiguchi Telephone: 808-694-8580 Mobile: 808-265-6367 E-mail: Stafford.Kiguchi@boh.com

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