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

Bank of Hawaii Corporation Second Quarter 2021 Financial Results

Jul. 26, 2021

HONOLULU--(BUSINESS WIRE)--Jul. 26, 2021--Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per common share of $1.68 for the second quarter of 2021, compared with diluted earnings per common share of $1.50 in the previous quarter and $0.98 in the same quarter last year. Net income for the second quarter of 2021 was $67.5 million compared with net income of $59.9 million in the first quarter of 2021 and $38.9 million in the second quarter of 2020.

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"Bank of Hawaii Corporation continued to perform well during the second quarter of 2021," said Peter Ho, Chairman, President, and CEO. "Core loans and deposits continue to grow, and asset quality remains solid. We are also pleased with the success of our inaugural preferred stock issuance in June, which enhances the strength of our balance sheet and positions us well for future growth."

The return on average assets for the second quarter of 2021 was 1.23 percent compared with 1.15 percent during the previous quarter and 0.82 percent in the same quarter last year. The return on average common equity for the second quarter of 2021 was 19.60 percent compared with 17.65 percent during the previous quarter and 11.58 percent in the same quarter last year.

For the six-month period ended June 30, 2021, net income was $127.5 million, up from net income of $73.7 million during the same period last year. Diluted earnings per common share were $3.18 for the first half of 2021 compared with diluted earnings per common share of $1.85 for the first half of 2020.

The return on average assets for the six-month period ended June 30, 2021 was 1.19 percent compared with the return on average assets of 0.79 percent for the same six-month period in 2020. The return on average common equity was 18.63 percent for the first half of 2021 compared with the return on average common equity of 11.11 percent for the first half of 2020.

Financial Highlights

Net interest income, on a taxable-equivalent basis, for the second quarter of 2021 was $123.8 million, an increase of $3.0 million from $120.8 million in the first quarter of 2021 and down $3.2 million from $127.0 million in the second quarter of 2020. The net interest margin was 2.37 percent in the second quarter of 2021, a decrease of 6 basis points from 2.43 percent in the previous quarter and 46 basis points from 2.83 percent in the same quarter last year. The decrease in the net interest margin is largely due to higher levels of liquidity from continued strong deposit growth and lower interest rates, partially offset by higher fees from Paycheck Protection Program ("PPP") loans. 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 2021 was $244.7 million, down $8.7 million compared with net interest income of $253.4 million for the first half of 2020. The net interest margin for the first six months of 2021 was 2.40 percent, compared with the net interest margin of 2.90 percent for the same six-month period last year. Analyses of changes in net interest income are included in Tables 8a, 8b, and 8c.

Results for the second quarter of 2021 included a negative provision for credit losses of $16.1 million compared with a negative provision for credit losses of $14.3 million in the previous quarter and provision for credit losses of $40.4 million in the same quarter last year. The provision for credit losses during the first half of 2021 was negative $30.4 million compared with a provision for credit losses of $74.0 million during the same period in 2020.

Noninterest income was $44.4 million in the second quarter of 2021, an increase of $1.4 million compared with noninterest income of $43.0 million in the first quarter of 2021 and a decrease of $6.9 million compared with $51.3 million in the second quarter of 2020. Noninterest income in the second quarter of 2021 included a gain of $3.7 million related to the sale of investment securities, partially offset by lower mortgage banking income. Noninterest income during the second quarter of 2020 included a gain of $14.2 million related to a sale of Visa Class B shares. Noninterest income for the first half of 2021 was $87.4 million compared with noninterest income of $97.4 million for the first half of 2020.

Noninterest expense was $96.5 million in the second quarter of 2021, a decrease of $2.4 million compared with noninterest expense of $98.9 million in the first quarter of 2021 and an increase of $7.6 million compared with $88.9 million in the second quarter of 2020. Noninterest expense during the second quarter of 2021 included fees related to the early termination of FHLB advances and repurchase agreements of $3.2 million offset by a gain on the sale of property of $3.1 million. Noninterest expense in the second quarter of 2021 also included the restoration of incentive compensation that was reduced in the second quarter of 2020. Noninterest expense in the first quarter of 2021 included seasonal payroll expenses of approximately $2.1 million, costs related to the rollout of contactless cards of $1.9 million, and separation expenses of $1.8 million. Noninterest expense for the first half of 2021 was $195.4 million compared with noninterest expense of $185.2 million for the first half of 2020. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The efficiency ratio during the second quarter of 2021 was 57.47 percent compared with 60.45 percent in the previous quarter and 49.95 percent during the same quarter last year. The efficiency ratio for the first half of 2021 was 58.94 percent compared with 52.90 percent in the same period last year.

The effective tax rate for the second quarter of 2021 was 22.84 percent compared with 24.09 percent in the previous quarter and 20.05 percent during the same quarter in 2020. The effective tax rate for the first half of 2021 was 23.43 percent compared with an effective tax rate of 18.95 percent during the same period last year. The increase in the effective tax rate for the first half of 2021 was primarily due to higher pretax book income in the first half of 2021.

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 overall asset quality continued to remain stable during the second quarter of 2021. Total non-performing assets were $19.0 million at June 30, 2021, up from $17.9 million at March 31, 2021 and down from $22.7 million at June 30, 2020. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.16 percent at the end of the second quarter of 2021, compared with 0.15 percent at the end of the first quarter of 2021 and 0.19 percent at the end of the second quarter of 2020.

Accruing loans and leases past due 90 days or more were $9.3 million at June 30, 2021 compared with $10.4 million at March 31, 2021 and $8.9 million at June 30, 2020. Restructured loans on accrual status and not past due 90 days or more were $74.9 million at June 30, 2021 compared with $74.2 million at March 31, 2021 and $59.7 million at June 30, 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 second quarter of 2021 were $1.2 million or 0.04 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $4.3 million partially offset by recoveries of $3.1 million. 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 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 and were comprised of $8.3 million of charge-offs partially offset by recoveries of $3.2 million. Net loan and lease charge-offs during the first half of 2021 were $4.1 million or 0.07 percent annualized of total average loans and leases outstanding compared with net charge-offs of $8.9 million or 0.16 percent annualized of total average loans and leases outstanding for the first half of 2020.

The allowance for credit losses on loans and leases was $180.4 million at June 30, 2021, a decrease from $198.3 million at March 31, 2021 and an increase from $173.4 million at June 30, 2020. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.50 percent at June 30, 2021, down from 1.63 percent at March 31, 2021 and up from 1.47 percent at June 30, 2020. The reserve for unfunded commitments was $4.5 million at June 30, 2021, an increase from $3.0 million at the end of the prior quarter and an increase from $2.5 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 $22.7 billion at June 30, 2021, an increase compared with total assets of $21.9 billion at March 31, 2021 and $19.8 billion at June 30, 2020. Average total assets were $22.1 billion during the second quarter of 2021, an increase from $21.2 billion during the first quarter of 2021 and $19.2 billion in the second quarter of 2020.

The investment securities portfolio was $8.5 billion at June 30, 2021, up from $7.5 billion at March 31, 2021 and from $6.0 billion at June 30, 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 U.S. government-sponsored enterprises and includes $4.5 billion in securities available-for-sale and $3.9 billion in securities held-to-maturity at June 30, 2021. The securities portfolio at March 31, 2021 included $4.0 billion in securities available-for-sale and $3.5 billion in securities held-to-maturity. The securities portfolio at June 30, 2020 included $2.7 billion in securities available-for-sale and $3.3 billion in securities held-to-maturity.

Total loans and leases were $12.0 billion at June 30, 2021, a decrease of 0.8 percent from total loans and leases of $12.1 billion at March 31, 2021 and an increase of 2.0 percent from $11.8 billion at June 30, 2020. Average total loans and leases were $12.1 billion during the second quarter of 2021, an increase from average total loans and leases of $12.0 billion during the first quarter of 2021 and $11.7 billion during the second quarter of 2020.

The commercial loan portfolio was $5.1 billion at June 30, 2021, a decrease of $156.2 million or 3.0 percent from $5.3 billion at March 31, 2021 and up $80.4 million or 1.6 percent from $5.0 billion at June 30, 2020. Commercial loans excluding PPP loans were $4.6 billion at June 30, 2021, an increase of $55.7 million or 1.2 percent from $4.5 billion at March 31, 2021 and an increase of $95.3 million or 2.1 percent from $4.5 billion at June 30, 2020. PPP loans were $513.5 million at June 30, 2021, a decrease of $212.0 million or 29.2 percent from $725.5 million at March 31, 2021 and a decrease of $14.9 million or 2.8 percent from $528.5 million at June 30, 2020. Consumer loans were $6.9 billion at June 30, 2021, an increase of $56.9 million or 0.8 percent from $6.9 billion at March 31, 2021 and up $155.6 million or 2.3 percent from $6.8 billion at June 30, 2020. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $20.2 billion at June 30, 2021, an increase of 3.1 percent from total deposits of $19.6 billion at March 31, 2021 and up 15.8 percent from total deposits of $17.4 billion at June 30, 2020. Average total deposits were $19.7 billion during the second quarter of 2021, an increase from $18.7 billion during the first quarter of 2021 and from $16.7 billion during second quarter of 2020.

Consumer deposits were $9.8 billion at June 30, 2021, an increase of $101.6 million or 1.0 percent from $9.7 billion at March 31, 2021 and an increase of $1.0 billion or 12.3 percent from $8.8 billion at June 30, 2020. Commercial deposits were $8.7 billion at June 30, 2021, an increase of $434.8 million or 5.3 percent from $8.2 billion at March 31, 2021 and an increase of $1.4 billion or 18.9 percent from $7.3 billion at June 30, 2020. Other deposits, including public funds, were $1.6 billion at June 30, 2021, an increase of $76.7 million or 4.9 percent from $1.6 billion at March 31, 2021 and an increase of $284.3 million or 20.9 percent from $1.4 billion at June 30, 2020. Deposit balances are summarized in Table 10.

In the second quarter of 2021, the Company issued $180 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, at a rate of 4.375%. The Company received net proceeds from the offering of $175.5 million after issuance costs. There were no repurchases under the share repurchase program in the second quarter of 2021. Total remaining buyback authority under the share repurchase program was $113.1 million at July 23, 2021.

Total shareholders' equity was $1.6 billion at June 30, 2021, compared with $1.4 billion at March 31, 2021 and $1.4 billion at June 30, 2020. The Tier 1 Capital Ratio was 13.87 percent at June 30, 2021 compared with 12.35 percent at March 31, 2021 and 12.04 percent at June 30, 2020. The Tier 1 Leverage Ratio at June 30, 2021 was 7.31 percent compared with 6.61 percent at March 31, 2021 and 6.90 percent at June 30, 2020.

The Company's Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company's outstanding common shares. The dividend will be payable on September 15, 2021 to shareholders of record at the close of business on August 31, 2021. The Board of Directors previously declared the first quarterly dividend payment of $5.59 per share, equivalent to $0.13975 per depositary share, on its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A for the period covering June 15, 2021 through July 31, 2021. The depositary shares representing the Series A Preferred Stock are traded on the NYSE under the symbol "BOH.PRA." The dividend will be payable on August 2, 2021 to shareholders of record of the preferred stock as of July 16, 2021.

Conference Call Information

The Company will review its second quarter financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. The webcast link is https://edge.media-server.com/mmc/p/nujqrorp. 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, July 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 3698556 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 and its Form 10-Q for the fiscal quarter ended March 31, 2021, which were filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

Bank of Hawaii Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawaii and the West Pacific. The Company's principal subsidiary, Bank of 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, 2021 2021 2020 2021 2020except pershare amounts)For thePeriod:OperatingResultsNet Interest $ 123,514 $ 120,569 $ 126,691 $ 244,083 $ 252,657 IncomeProvision for (16,100 ) (14,300 ) 40,400 (30,400 ) 74,000 Credit LossesTotal 44,431 42,970 51,268 87,401 97,417 NoninterestIncomeTotal 96,527 98,865 88,892 195,392 185,204 NoninterestExpenseNet Income 67,533 59,949 38,908 127,482 73,650

Basic Earnings 1.69 1.51 0.98 3.20 1.86 Per CommonShareDiluted 1.68 1.50 0.98 3.18 1.85 Earnings PerCommon ShareDividends 0.67 0.67 0.67 1.34 1.34 Declared PerCommon Share PerformanceRatiosReturn on 1.23 % 1.15 % 0.82 % 1.19 % 0.79 %Average AssetsReturn onAverage 19.17 17.65 11.58 18.43 11.11 Shareholders'EquityReturn on 19.60 17.65 11.58 18.63 11.11 Average CommonEquityEfficiency 57.47 60.45 49.95 58.94 52.90 Ratio ^1Net Interest 2.37 2.43 2.83 2.40 2.90 Margin ^2Dividend 39.64 44.37 68.37 41.88 72.04 Payout Ratio ^3AverageShareholders' 6.40 6.51 7.04 6.45 7.12 Equity toAverage Assets AverageBalancesAverage Loans $ 12,096,308 $ 11,952,587 $ 11,727,649 $ 12,024,844 $ 11,394,178 and LeasesAverage Assets 22,073,569 21,150,670 19,189,581 21,614,669 18,706,092

Average 19,698,285 18,665,222 16,679,511 19,184,607 16,248,628 DepositsAverage 1,412,924 1,377,272 1,351,345 1,395,197 1,332,596 Shareholders'Equity Per Share ofCommon StockBook Value $ 34.80 $ 33.67 $ 33.76 $ 34.80 $ 33.76

Tangible Book 34.02 32.89 32.97 34.02 32.97 ValueMarket ValueClosing 84.22 89.49 61.41 84.22 61.41

High 95.95 99.10 72.74 99.10 95.53

Low 81.23 75.65 51.15 75.65 46.70

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

2021 2021 2020 2020

As of PeriodEnd:Balance SheetTotalsLoans and $ 12,041,378 $ 12,140,703 $ 11,940,020 $ 11,805,370 LeasesTotal Assets 22,672,183 21,947,271 20,603,651 19,769,942

Total Deposits 20,169,709 19,556,651 18,211,621 17,423,155

Other Debt 10,437 60,459 60,481 60,524

Total 1,583,531 1,360,221 1,374,507 1,352,082 Shareholders'Equity Asset QualityNon-Performing $ 18,974 $ 17,883 $ 18,481 $ 22,701 AssetsAllowance forCredit Losses 180,385 198,343 216,252 173,439 - Loans andLeasesAllowance toLoans and 1.50 % 1.63 % 1.81 % 1.47 %LeasesOutstanding ^4 Capital Ratios^5Common Equity 12.36 % 12.35 % 12.06 % 12.04 %Tier 1 CapitalRatioTier 1 Capital 13.87 12.35 12.06 12.04 RatioTotal Capital 15.13 13.61 13.31 13.29 RatioTier 1 7.31 6.61 6.71 6.90 Leverage RatioTotalShareholders' 6.98 6.20 6.67 6.84 Equity toTotal AssetsTangibleCommon Equity 6.08 6.06 6.53 6.69 to TangibleAssets ^6TangibleCommon Equity 11.85 11.78 11.89 12.07 toRisk-WeightedAssets^ 6 Non-FinancialDataFull-Time 2,085 2,058 2,022 2,112 EquivalentEmployeesBranches 54 63 65 67

ATMs 312 361 357 367

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 common share divided by basic earnings per common share.4

The numerator comprises the Allowance for Credit Losses - Loans and Leases.5

Regulatory capital ratios as of June 30, 2021 are preliminary.6

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 common share3 divided by basic earnings per common share.

^4 The numerator comprises the Allowance for Credit Losses - Loans and Leases.

^5 Regulatory capital ratios as of June 30, 2021 are preliminary.

^ Tangible common equity to tangible assets and tangible common equity to6 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 2June 30,

March 31,

December 31,

June 30,

(dollars in thousands)2021

2021

2020

2020

Total Shareholders' Equity$

1,583,531

$

1,360,221

$

1,374,507

$

1,352,082

Less:Preferred Stock175,487

-

-

-

Goodwill31,517

31,517

31,517

31,517

Tangible Common Equity$

1,376,527

$

1,328,704

$

1,342,990

$

1,320,565

Total Assets$

22,672,183

$

21,947,271

$

20,603,651

$

19,769,942

Less:Goodwill31,517

31,517

31,517

31,517

Tangible Assets$

22,640,666

$

21,915,754

$

20,572,134

$

19,738,425

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

11,614,522

$

11,275,565

$

11,295,077

$

10,941,894

Total Shareholders' Equity to Total Assets6.98

%

6.20

%

6.67

%

6.84

%

Tangible Common Equity to Tangible Assets (Non-GAAP)6.08

%

6.06

%

6.53

%

6.69

%

Tier 1 Capital Ratio13.87

%

12.35

%

12.06

%

12.04

%

Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)11.85

%

11.78

%

11.89

%

12.07

%

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

(dollars in 2021 2021 2020 2020thousands) Total $ 1,583,531 $ 1,360,221 $ 1,374,507 $ 1,352,082 Shareholders'EquityLess:Preferred 175,487 - - - StockGoodwill 31,517 31,517 31,517 31,517

Tangible $ 1,376,527 $ 1,328,704 $ 1,342,990 $ 1,320,565 Common Equity Total Assets $ 22,672,183 $ 21,947,271 $ 20,603,651 $ 19,769,942

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

Tangible $ 22,640,666 $ 21,915,754 $ 20,572,134 $ 19,738,425 Assets Risk-WeightedAssets,determined inaccordance $ 11,614,522 $ 11,275,565 $ 11,295,077 $ 10,941,894 withprescribedregulatoryrequirements TotalShareholders' 6.98 % 6.20 % 6.67 % 6.84 %Equity toTotal AssetsTangibleCommon Equity 6.08 % 6.06 % 6.53 % 6.69 %to TangibleAssets(Non-GAAP) Tier 1 Capital 13.87 % 12.35 % 12.06 % 12.04 %Ratio^TangibleCommon Equityto 11.85 % 11.78 % 11.89 % 12.07 %Risk-WeightedAssets(Non-GAAP)Note: Risk-Weighted Assets and Regulatory capital ratios as of June 30, 2021 are preliminary.Note: Risk-Weighted Assets and Regulatory capital ratios as of June 30, 2021are preliminary.Bank of Hawaii Corporation and SubsidiariesConsolidated Statements of IncomeTable 3Three Months EndedSix Months EndedJune 30,

March 31,

June 30,

June 30,

(dollars in thousands, except per share amounts)2021

2021

2020

2021

2020

Interest IncomeInterest and Fees on Loans and Leases$

100,894

$

99,299

$

107,628

$

200,193

$

215,838

Income on Investment SecuritiesAvailable-for-Sale16,467

15,837

14,576

32,304

31,287

Held-to-Maturity13,576

13,300

16,723

26,876

35,975

Deposits-

7

1

7

10

Funds Sold260

137

92

397

638

Other182

185

125

367

343

Total Interest Income131,379

128,765

139,145

260,144

284,091

Interest ExpenseDeposits4,152

4,329

7,954

8,481

22,214

Securities Sold Under Agreements to Repurchase3,470

3,533

4,020

7,003

8,045

Funds Purchased-

1

18

1

90

Short-Term Borrowings-

-

22

-

61

Other Debt243

333

440

576

1,024

Total Interest Expense7,865

8,196

12,454

16,061

31,434

Net Interest Income123,514

120,569

126,691

244,083

252,657

Provision for Credit Losses(16,100

)

(14,300

)

40,400

(30,400

)

74,000

Net Interest Income After Provision for Credit Losses139,614

134,869

86,291

274,483

178,657

Noninterest IncomeTrust and Asset Management11,682

11,278

10,550

22,960

21,465

Mortgage Banking3,058

5,862

4,278

8,920

6,973

Service Charges on Deposit Accounts6,065

6,128

5,097

12,193

12,548

Fees, Exchange, and Other Service Charges13,807

13,607

9,417

27,414

22,617

Investment Securities Gains (Losses), Net2,423

(1,203

)

13,216

1,220

12,246

Annuity and Insurance911

702

883

1,613

1,811

Bank-Owned Life Insurance2,063

1,917

1,649

3,980

3,229

Other4,422

4,679

6,178

9,101

16,528

Total Noninterest Income44,431

42,970

51,268

87,401

97,417

Noninterest ExpenseSalaries and Benefits56,161

56,251

50,715

112,412

105,178

Net Occupancy5,047

9,090

8,761

14,137

17,716

Net Equipment8,796

8,878

8,195

17,674

16,651

Data Processing4,557

6,322

4,416

10,879

9,204

Professional Fees3,114

3,406

3,061

6,520

6,269

FDIC Insurance1,669

1,654

1,558

3,323

3,014

Other17,183

13,264

12,186

30,447

27,172

Total Noninterest Expense96,527

98,865

88,892

195,392

185,204

Income Before Provision for Income Taxes87,518

78,974

48,667

166,492

90,870

Provision for Income Taxes19,985

19,025

9,759

39,010

17,220

Net Income$

67,533

$

59,949

$

38,908

$

127,482

$

73,650

Basic Earnings Per Common Share$

1.69

$

1.51

$

0.98

$

3.20

$

1.86

Diluted Earnings Per Common Share$

1.68

$

1.50

$

0.98

$

3.18

$

1.85

Dividends Declared Per Common Share$

0.67

$

0.67

$

0.67

$

1.34

$

1.34

Basic Weighted Average Common Shares39,902,583

39,827,590

39,703,735

39,865,268

39,692,695

Diluted Weighted Average Common Shares40,122,905

40,071,477

39,832,475

40,096,527

39,873,334

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 2021 2021 2020 2021 2020thousands, exceptper share amounts)Interest IncomeInterest and Fees $ 100,894 $ 99,299 $ 107,628 $ 200,193 $ 215,838on Loans andLeasesIncome onInvestmentSecuritiesAvailable-for-Sale 16,467 15,837 14,576 32,304 31,287

Held-to-Maturity 13,576 13,300 16,723 26,876 35,975

Deposits - 7 1 7 10

Funds Sold 260 137 92 397 638

Other 182 185 125 367 343

Total Interest 131,379 128,765 139,145 260,144 284,091IncomeInterest ExpenseDeposits 4,152 4,329 7,954 8,481 22,214

Securities Sold 3,470 3,533 4,020 7,003 8,045Under Agreementsto RepurchaseFunds Purchased - 1 18 1 90

Short-Term - - 22 - 61BorrowingsOther Debt 243 333 440 576 1,024

Total Interest 7,865 8,196 12,454 16,061 31,434ExpenseNet Interest 123,514 120,569 126,691 244,083 252,657IncomeProvision for (16,100 ) (14,300 ) 40,400 (30,400 ) 74,000Credit LossesNet InterestIncome After 139,614 134,869 86,291 274,483 178,657Provision forCredit LossesNoninterest IncomeTrust and Asset 11,682 11,278 10,550 22,960 21,465ManagementMortgage Banking 3,058 5,862 4,278 8,920 6,973

Service Charges on 6,065 6,128 5,097 12,193 12,548Deposit AccountsFees, Exchange, 13,807 13,607 9,417 27,414 22,617and Other ServiceChargesInvestment 2,423 (1,203 ) 13,216 1,220 12,246Securities Gains(Losses), NetAnnuity and 911 702 883 1,613 1,811InsuranceBank-Owned Life 2,063 1,917 1,649 3,980 3,229InsuranceOther 4,422 4,679 6,178 9,101 16,528

Total Noninterest 44,431 42,970 51,268 87,401 97,417IncomeNoninterestExpenseSalaries and 56,161 56,251 50,715 112,412 105,178BenefitsNet Occupancy 5,047 9,090 8,761 14,137 17,716

Net Equipment 8,796 8,878 8,195 17,674 16,651

Data Processing 4,557 6,322 4,416 10,879 9,204

Professional Fees 3,114 3,406 3,061 6,520 6,269

FDIC Insurance 1,669 1,654 1,558 3,323 3,014

Other 17,183 13,264 12,186 30,447 27,172

Total Noninterest 96,527 98,865 88,892 195,392 185,204ExpenseIncome Before 87,518 78,974 48,667 166,492 90,870Provision forIncome TaxesProvision for 19,985 19,025 9,759 39,010 17,220Income TaxesNet Income $ 67,533 $ 59,949 $ 38,908 $ 127,482 $ 73,650

Basic Earnings Per $ 1.69 $ 1.51 $ 0.98 $ 3.20 $ 1.86Common ShareDiluted Earnings $ 1.68 $ 1.50 $ 0.98 $ 3.18 $ 1.85Per Common ShareDividends Declared $ 0.67 $ 0.67 $ 0.67 $ 1.34 $ 1.34Per Common ShareBasic Weighted 39,902,583 39,827,590 39,703,735 39,865,268 39,692,695Average CommonSharesDiluted Weighted 40,122,905 40,071,477 39,832,475 40,096,527 39,873,334Average CommonSharesBank of Hawaii Corporation and SubsidiariesConsolidated Statements of Comprehensive IncomeTable 4Three Months EndedSix Months EndedJune 30,

March 31,

June 30,

June 30,

(dollars in thousands)2021

2021

2020

2021

2020

Net Income$

67,533

$

59,949

$

38,908

$

127,482

$

73,650

Other Comprehensive Income (Loss), Net of Tax:Net Unrealized Gains (Losses) on Investment Securities(123

)

(50,050

)

7,730

(50,173

)

49,289

Defined Benefit Plans442

441

374

883

748

Other Comprehensive Income (Loss)319

(49,609

)

8,104

(49,290

)

50,037

Comprehensive Income$

67,852

$

10,340

$

47,012

$

78,192

$

123,687

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

(dollars in 2021 2021 2020 2021 2020thousands)Net Income $ 67,533 $ 59,949 $ 38,908 $ 127,482 $ 73,650

OtherComprehensiveIncome (Loss),Net of Tax:Net UnrealizedGains (Losses) (123 ) (50,050 ) 7,730 (50,173 ) 49,289on InvestmentSecuritiesDefined Benefit 442 441 374 883 748PlansOther 319 (49,609 ) 8,104 (49,290 ) 50,037ComprehensiveIncome (Loss)Comprehensive $ 67,852 $ 10,340 $ 47,012 $ 78,192 $ 123,687IncomeBank of Hawaii Corporation and SubsidiariesConsolidated Statements of ConditionTable 5June 30,March 31,December 31,June 30,(dollars in thousands)2021

2021

2020

2020

AssetsInterest-Bearing Deposits in Other Banks$

2,584

$

4,506

$

1,646

$

2,310

Funds Sold909,730

1,101,631

333,022

800,857

Investment SecuritiesAvailable-for-Sale4,522,941

4,024,763

3,791,689

2,726,478

Held-to-Maturity (Fair Value of $3,965,117; $3,477,346; $3,348,693; and $3,374,294)3,947,613

3,464,360

3,262,727

3,276,829

Loans Held for Sale47,490

18,320

82,565

20,711

Loans and Leases12,041,378

12,140,703

11,940,020

11,805,370

Allowance for Credit Losses(180,385

)

(198,343

)

(216,252

)

(173,439

)

Net Loans and Leases11,860,993

11,942,360

11,723,768

11,631,931

Total Earning Assets21,291,351

20,555,940

19,195,417

18,459,116

Cash and Due from Banks269,153

286,717

279,420

242,423

Premises and Equipment, Net198,508

198,107

199,695

198,582

Operating Lease Right-of-Use Assets97,264

97,750

99,542

97,166

Accrued Interest Receivable47,046

47,917

49,303

50,645

Foreclosed Real Estate2,332

2,332

2,332

2,506

Mortgage Servicing Rights21,473

22,320

19,652

22,904

Goodwill31,517

31,517

31,517

31,517

Bank-Owned Life Insurance292,805

291,764

291,480

291,185

Other Assets420,734

412,907

435,293

373,898

Total Assets$

22,672,183

$

21,947,271

$

20,603,651

$

19,769,942

LiabilitiesDepositsNoninterest-Bearing Demand$

6,570,232

$

6,227,436

$

5,749,612

$

5,485,015

Interest-Bearing Demand4,498,825

4,379,243

4,040,733

3,437,654

Savings7,704,575

7,474,580

6,759,213

6,821,710

Time1,396,077

1,475,392

1,662,063

1,678,776

Total Deposits20,169,709

19,556,651

18,211,621

17,423,155

Funds Purchased-

-

-

-

Short-Term Borrowings-

-

-

-

Securities Sold Under Agreements to Repurchase550,490

600,490

600,590

603,206

Other Debt10,437

60,459

60,481

60,524

Operating Lease Liabilities105,380

105,820

107,412

104,741

Retirement Benefits Payable50,260

50,687

51,197

43,833

Accrued Interest Payable3,879

4,109

5,117

7,775

Taxes Payable and Deferred Taxes11,844

15,599

2,463

38,297

Other Liabilities186,653

193,235

190,263

136,329

Total Liabilities21,088,652

20,587,050

19,229,144

18,417,860

Shareholders' EquityPreferred Stock ($.01 par value; authorized 180,000 shares; issued and outstanding: June 30, 2021 - 180,000 shares)180,000

-

-

-

Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2021 - 58,557,754 / 40,465,482; March 31, 2021 - 58,553,365 / 40,394,234; December 31, 2020 - 58,285,624 / 40,119,312; and June 30, 2020 - 58,263,452 / 40,047,694)580

580

580

580

Capital Surplus594,261

594,804

591,360

586,946

Accumulated Other Comprehensive Income (Loss)(41,468

)

(41,787

)

7,822

18,925

Retained Earnings1,884,431

1,844,057

1,811,979

1,786,351

Treasury Stock, at Cost (Shares: June 30, 2021 - 18,092,272; March 31, 2021 - 18,159,131; December 31, 2020 - 18,166,312; and June 30, 2020 - 18,215,758)(1,034,273

)

(1,037,433

)

(1,037,234

)

(1,040,720

)

Total Shareholders' Equity1,583,531

1,360,221

1,374,507

1,352,082

Total Liabilities and Shareholders' Equity$

22,672,183

$

21,947,271

$

20,603,651

$

19,769,942

Bank of Hawaii Corporation and SubsidiariesConsolidatedStatements of Table 5Condition June 30, March 31, December 31, June 30,(dollars in 2021 2021 2020 2020thousands)AssetsInterest-Bearing $ 2,584 $ 4,506 $ 1,646 $ 2,310 Deposits in OtherBanksFunds Sold 909,730 1,101,631 333,022 800,857

InvestmentSecuritiesAvailable-for-Sale 4,522,941 4,024,763 3,791,689 2,726,478

Held-to-Maturity(Fair Value of$3,965,117; 3,947,613 3,464,360 3,262,727 3,276,829 $3,477,346;$3,348,693; and$3,374,294)Loans Held for Sale 47,490 18,320 82,565 20,711

Loans and Leases 12,041,378 12,140,703 11,940,020 11,805,370

Allowance for (180,385 ) (198,343 ) (216,252 ) (173,439 )Credit LossesNet Loans and 11,860,993 11,942,360 11,723,768 11,631,931 LeasesTotal Earning 21,291,351 20,555,940 19,195,417 18,459,116 AssetsCash and Due from 269,153 286,717 279,420 242,423 BanksPremises and 198,508 198,107 199,695 198,582 Equipment, NetOperating Lease 97,264 97,750 99,542 97,166 Right-of-Use AssetsAccrued Interest 47,046 47,917 49,303 50,645 ReceivableForeclosed Real 2,332 2,332 2,332 2,506 EstateMortgage Servicing 21,473 22,320 19,652 22,904 RightsGoodwill 31,517 31,517 31,517 31,517

Bank-Owned Life 292,805 291,764 291,480 291,185 InsuranceOther Assets 420,734 412,907 435,293 373,898

Total Assets $ 22,672,183 $ 21,947,271 $ 20,603,651 $ 19,769,942

LiabilitiesDepositsNoninterest-Bearing $ 6,570,232 $ 6,227,436 $ 5,749,612 $ 5,485,015 DemandInterest-Bearing 4,498,825 4,379,243 4,040,733 3,437,654 DemandSavings 7,704,575 7,474,580 6,759,213 6,821,710

Time 1,396,077 1,475,392 1,662,063 1,678,776

Total Deposits 20,169,709 19,556,651 18,211,621 17,423,155

Funds Purchased - - - -

Short-Term - - - - BorrowingsSecurities Sold 550,490 600,490 600,590 603,206 Under Agreements toRepurchaseOther Debt 10,437 60,459 60,481 60,524

Operating Lease 105,380 105,820 107,412 104,741 LiabilitiesRetirement Benefits 50,260 50,687 51,197 43,833 PayableAccrued Interest 3,879 4,109 5,117 7,775 PayableTaxes Payable and 11,844 15,599 2,463 38,297 Deferred TaxesOther Liabilities 186,653 193,235 190,263 136,329

Total Liabilities 21,088,652 20,587,050 19,229,144 18,417,860

Shareholders'EquityPreferred Stock($.01 par value;authorized 180,000 180,000 - - - shares; issued andoutstanding: June30, 2021 - 180,000shares)Common Stock ($.01par value;authorized500,000,000 shares;issued /outstanding: June30, 2021 -58,557,754 /40,465,482; March 580 580 580 580 31, 2021 -58,553,365 /40,394,234;December 31, 2020 -58,285,624 /40,119,312; andJune 30, 2020 -58,263,452 /40,047,694)Capital Surplus 594,261 594,804 591,360 586,946

Accumulated Other (41,468 ) (41,787 ) 7,822 18,925 ComprehensiveIncome (Loss)Retained Earnings 1,884,431 1,844,057 1,811,979 1,786,351

Treasury Stock, atCost (Shares: June30, 2021 -18,092,272; March31, 2021 - (1,034,273 ) (1,037,433 ) (1,037,234 ) (1,040,720 )18,159,131;December 31, 2020 -18,166,312; andJune 30, 2020 -18,215,758)Total Shareholders' 1,583,531 1,360,221 1,374,507 1,352,082 EquityTotal Liabilities $ 22,672,183 $ 21,947,271 $ 20,603,651 $ 19,769,942 and Shareholders'EquityBank of Hawaii Corporation and SubsidiariesConsolidated Statements of Shareholders' EquityTable 6Accum.OtherCompre-PreferredCommonhensiveSharesPreferredSharesCommonCapitalIncomeRetainedTreasury(dollars in thousands)OutstandingStockOutstandingStockSurplus(Loss)EarningsStockTotalBalance as of December 31, 2020-

$

-

40,119,312

$

580

$

591,360

$

7,822

$

1,811,979

$

(1,037,234

)

$

1,374,507

Net Income-

-

-

-

-

-

127,482

-

127,482

Other Comprehensive Loss-

-

-

-

-

(49,290

)

-

-

(49,290

)

Share-Based Compensation-

-

-

-

6,122

-

-

-

6,122

Preferred Stock Issued, Net180,000

180,000

-

-

(4,513

)

-

-

-

175,487

Common Stock Issued under Purchase and Equity Compensation Plans-

-

383,326

-

1,292

-

(891

)

6,259

6,660

Common Stock Repurchased-

-

(37,156

)

-

-

-

-

(3,298

)

(3,298

)

Cash Dividends Declared Common Stock ($1.34 per share)-

-

-

-

-

-

(54,139

)

-

(54,139

)

Balance as of June 30, 2021180,000

$

180,000

40,465,482

$

580

$

594,261

$

(41,468

)

$

1,884,431

$

(1,034,273

)

$

1,583,531

Balance as of December 31, 2019-

$

-

40,039,695

$

579

$

582,566

$

(31,112

)

$

1,761,415

$

(1,026,616

)

$

1,286,832

Net Income-

-

-

-

-

-

73,650

-

73,650

Other Comprehensive Income-

-

-

-

-

50,037

-

-

50,037

Cumulative Change in Accounting Principle-

-

-

-

-

-

3,632

-

3,632

Share-Based Compensation-

-

-

-

3,704

-

-

-

3,704

Common Stock Issued under Purchase and Equity Compensation Plans-

-

195,351

1

676

-

1,333

3,041

5,051

Common Stock Repurchased-

-

(187,352

)

-

-

-

-

(17,145

)

(17,145

)

Cash Dividends Declared Common Stock ($1.34 per share)-

-

-

-

-

-

(53,679

)

-

(53,679

)

Balance as of June 30, 2020-

$

-

40,047,694

$

580

$

586,946

$

18,925

$

1,786,351

$

(1,040,720

)

$

1,352,082

Bank of Hawaii Corporation and SubsidiariesConsolidated Statements of Table 6Shareholders' Equity Accum. Other Compre- Preferred Common hensive Shares Preferred Shares Common Capital Income Retained Treasury(dollars in Outstanding Stock 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 - - - - - - 127,482 - 127,482

Other - - - - - (49,290 ) - - (49,290 )ComprehensiveLossShare-Based - - - - 6,122 - - - 6,122 CompensationPreferred 180,000 180,000 - - (4,513 ) - - - 175,487 Stock Issued,NetCommon StockIssued underPurchase and - - 383,326 - 1,292 - (891 ) 6,259 6,660 EquityCompensationPlansCommon Stock - - (37,156 ) - - - - (3,298 ) (3,298 )RepurchasedCashDividendsDeclared - - - - - - (54,139 ) - (54,139 )Common Stock($1.34 pershare)Balance as of 180,000 $ 180,000 40,465,482 $ 580 $ 594,261 $ (41,468 ) $ 1,884,431 $ (1,034,273 ) $ 1,583,531 June 30, 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 - - - - - - 73,650 - 73,650

Other - - - - - 50,037 - - 50,037 ComprehensiveIncomeCumulativeChange in - - - - - - 3,632 - 3,632 AccountingPrincipleShare-Based - - - - 3,704 - - - 3,704 CompensationCommon StockIssued underPurchase and - - 195,351 1 676 - 1,333 3,041 5,051 EquityCompensationPlansCommon Stock - - (187,352 ) - - - - (17,145 ) (17,145 )RepurchasedCashDividendsDeclared - - - - - - (53,679 ) - (53,679 )Common Stock($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, 2020Bank of Hawaii Corporation and SubsidiariesAverage Balances and Interest Rates - Taxable-Equivalent BasisTable 7a

Three Months EndedThree Months EndedThree Months EndedJune 30, 2021March 31, 2021June 30, 2020AverageIncome/Yield/AverageIncome/Yield/AverageIncome/Yield/(dollars in millions)BalanceExpenseRateBalanceExpenseRateBalanceExpenseRateEarning AssetsInterest-Bearing Deposits in Other Banks$

2.2

$

-

0.04

%

$

3.2

$

-

0.93

%

$

2.6

$

-

0.18

%

Funds Sold946.2

0.3

0.11

550.6

0.1

0.10

545.9

0.1

0.07

Investment SecuritiesAvailable-for-SaleTaxable4,290.8

16.3

1.53

4,007.9

15.8

1.57

2,614.1

14.3

2.19

Non-Taxable12.3

0.1

4.27

12.3

0.1

4.27

32.2

0.4

4.45

Held-to-MaturityTaxable3,496.2

13.4

1.53

3,385.8

13.1

1.55

2,957.6

16.4

2.22

Non-Taxable41.5

0.3

2.53

38.1

0.2

2.55

54.4

0.4

2.66

Total Investment Securities7,840.8

30.1

1.54

7,444.1

29.2

1.57

5,658.3

31.5

2.22

Loans Held for Sale25.7

0.2

2.86

26.2

0.2

2.76

23.4

0.2

3.24

Loans and Leases 1Commercial and Industrial1,934.5

16.8

3.49

1,904.5

14.3

3.05

1,963.8

17.9

3.67

Commercial Mortgage2,883.5

21.3

2.96

2,846.0

21.3

3.04

2,622.9

22.3

3.42

Construction285.6

2.6

3.66

264.1

2.3

3.48

255.8

2.5

3.93

Commercial Lease Financing105.7

0.4

1.54

106.4

0.4

1.43

110.9

0.5

1.88

Residential Mortgage4,234.3

35.6

3.35

4,146.6

35.9

3.46

3,939.6

36.0

3.65

Home Equity1,573.4

12.1

3.09

1,594.1

12.6

3.20

1,665.2

14.3

3.45

Automobile710.4

6.1

3.45

708.3

6.1

3.51

701.2

6.2

3.55

Other 2368.9

6.0

6.53

382.6

6.4

6.75

468.2

7.9

6.77

Total Loans and Leases12,096.3

100.9

3.34

11,952.6

99.3

3.35

11,727.6

107.6

3.68

Other32.3

0.2

2.26

33.4

0.2

2.21

34.0

0.1

1.47

Total Earning Assets 320,943.5

131.7

2.52

20,010.1

129.0

2.60

17,991.8

139.5

3.11

Cash and Due from Banks256.1

270.7

302.4

Other Assets874.0

869.9

895.4

Total Assets$

22,073.6

$

21,150.7

$

19,189.6

Interest-Bearing LiabilitiesInterest-Bearing DepositsDemand$

4,452.4

0.7

0.07

$

4,186.4

0.6

0.06

$

3,226.6

0.6

0.07

Savings7,533.0

1.8

0.09

7,016.6

1.5

0.09

6,691.4

2.2

0.13

Time1,418.4

1.7

0.47

1,630.0

2.2

0.56

1,826.8

5.2

1.13

Total Interest-Bearing Deposits13,403.8

4.2

0.12

12,833.0

4.3

0.14

11,744.8

8.0

0.27

Short-Term Borrowings-

-

-

2.4

-

0.09

57.6

-

0.28

Securities Sold Under Agreements to Repurchase570.3

3.5

2.41

600.5

3.6

2.35

602.9

4.0

2.64

Other Debt30.2

0.2

3.22

60.5

0.3

2.22

60.5

0.5

2.91

Total Interest-Bearing Liabilities14,004.3

7.9

0.22

13,496.4

8.2

0.24

12,465.8

12.5

0.40

Net Interest Income$

123.8

$

120.8

$

127.0

Interest Rate Spread2.30

%

2.36

%

2.71

%

Net Interest Margin2.37

%

2.43

%

2.83

%

Noninterest-Bearing Demand Deposits6,294.5

5,832.2

4,934.7

Other Liabilities361.9

444.8

437.8

Shareholders' Equity1,412.9

1,377.3

1,351.3

Total Liabilities and Shareholders' Equity$

22,073.6

$

21,150.7

$

19,189.6

Bank of Hawaii Corporation and SubsidiariesAverage Balances and Interest Rates - Taxable-Equivalent Basis Table 7a

Three Months Ended Three Months Ended Three Months Ended June 30, 2021 March 31, 2021 June 30, 2020 Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/(dollars in Balance Expense Rate Balance Expense Rate Balance Expense Ratemillions)Earning AssetsInterest-Bearing $ 2.2 $ - 0.04 % $ 3.2 $ - 0.93 % $ 2.6 $ - 0.18 %Deposits in OtherBanksFunds Sold 946.2 0.3 0.11 550.6 0.1 0.10 545.9 0.1 0.07

InvestmentSecuritiesAvailable-for-SaleTaxable 4,290.8 16.3 1.53 4,007.9 15.8 1.57 2,614.1 14.3 2.19

Non-Taxable 12.3 0.1 4.27 12.3 0.1 4.27 32.2 0.4 4.45

Held-to-MaturityTaxable 3,496.2 13.4 1.53 3,385.8 13.1 1.55 2,957.6 16.4 2.22

Non-Taxable 41.5 0.3 2.53 38.1 0.2 2.55 54.4 0.4 2.66

Total Investment 7,840.8 30.1 1.54 7,444.1 29.2 1.57 5,658.3 31.5 2.22 SecuritiesLoans Held for Sale 25.7 0.2 2.86 26.2 0.2 2.76 23.4 0.2 3.24

Loans and Leases ^1Commercial and 1,934.5 16.8 3.49 1,904.5 14.3 3.05 1,963.8 17.9 3.67 IndustrialCommercial Mortgage 2,883.5 21.3 2.96 2,846.0 21.3 3.04 2,622.9 22.3 3.42

Construction 285.6 2.6 3.66 264.1 2.3 3.48 255.8 2.5 3.93

Commercial Lease 105.7 0.4 1.54 106.4 0.4 1.43 110.9 0.5 1.88 FinancingResidential 4,234.3 35.6 3.35 4,146.6 35.9 3.46 3,939.6 36.0 3.65 MortgageHome Equity 1,573.4 12.1 3.09 1,594.1 12.6 3.20 1,665.2 14.3 3.45

Automobile 710.4 6.1 3.45 708.3 6.1 3.51 701.2 6.2 3.55

Other ^2 368.9 6.0 6.53 382.6 6.4 6.75 468.2 7.9 6.77

Total Loans and 12,096.3 100.9 3.34 11,952.6 99.3 3.35 11,727.6 107.6 3.68 LeasesOther 32.3 0.2 2.26 33.4 0.2 2.21 34.0 0.1 1.47

Total Earning 20,943.5 131.7 2.52 20,010.1 129.0 2.60 17,991.8 139.5 3.11 Assets ^3Cash and Due from 256.1 270.7 302.4 BanksOther Assets 874.0 869.9 895.4

Total Assets $ 22,073.6 $ 21,150.7 $ 19,189.6

Interest-BearingLiabilitiesInterest-BearingDepositsDemand $ 4,452.4 0.7 0.07 $ 4,186.4 0.6 0.06 $ 3,226.6 0.6 0.07

Savings 7,533.0 1.8 0.09 7,016.6 1.5 0.09 6,691.4 2.2 0.13

Time 1,418.4 1.7 0.47 1,630.0 2.2 0.56 1,826.8 5.2 1.13

Total 13,403.8 4.2 0.12 12,833.0 4.3 0.14 11,744.8 8.0 0.27 Interest-BearingDepositsShort-Term - - - 2.4 - 0.09 57.6 - 0.28 BorrowingsSecurities Sold 570.3 3.5 2.41 600.5 3.6 2.35 602.9 4.0 2.64 Under Agreements toRepurchaseOther Debt 30.2 0.2 3.22 60.5 0.3 2.22 60.5 0.5 2.91

Total 14,004.3 7.9 0.22 13,496.4 8.2 0.24 12,465.8 12.5 0.40 Interest-BearingLiabilitiesNet Interest Income $ 123.8 $ 120.8 $ 127.0

Interest Rate 2.30 % 2.36 % 2.71 %SpreadNet Interest Margin 2.37 % 2.43 % 2.83 %

Noninterest-Bearing 6,294.5 5,832.2 4,934.7 Demand DepositsOther Liabilities 361.9 444.8 437.8

Shareholders' 1,412.9 1,377.3 1,351.3 EquityTotal Liabilities $ 22,073.6 $ 21,150.7 $ 19,189.6 and 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 $269,000, $252,000, and $358,000 for the three months ended June 30, 2021, March 31, 2021, and June 30, 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 consumer lease2 financing.

^ Interest income includes taxable-equivalent basis adjustments, based upon a3 federal statutory tax rate of 21%, of $269,000, $252,000, and $358,000 for the three months ended June 30, 2021, March 31, 2021, and June 30, 2020, respectively.Bank of Hawaii Corporation and SubsidiariesAverage Balances and Interest Rates - Taxable-Equivalent BasisTable 7b

Six Months EndedSix Months EndedJune 30, 2021June 30, 2020AverageIncome/Yield/AverageIncome/Yield/(dollars in millions)BalanceExpenseRateBalanceExpenseRateEarning AssetsInterest-Bearing Deposits in Other Banks$

2.7

$

-

0.56

%

$

2.0

$

-

0.96

%

Funds Sold749.5

0.4

0.11

349.3

0.6

0.36

Investment SecuritiesAvailable-for-SaleTaxable4,150.2

32.1

1.55

2,658.3

30.8

2.31

Non-Taxable12.3

0.3

4.27

32.3

0.7

4.43

Held-to-MaturityTaxable3,441.3

26.5

1.54

2,996.9

35.4

2.36

Non-Taxable39.8

0.5

2.54

54.5

0.7

2.67

Total Investment Securities7,643.6

59.4

1.55

5,742.0

67.6

2.35

Loans Held for Sale25.9

0.4

2.81

23.3

0.4

3.39

Loans and Leases 1Commercial and Industrial1,919.5

31.2

3.27

1,686.5

31.1

3.71

Commercial Mortgage2,864.9

42.6

3.00

2,586.2

47.4

3.69

Construction274.9

4.9

3.57

234.6

5.0

4.26

Commercial Lease Financing106.1

0.8

1.48

111.1

1.1

1.91

Residential Mortgage4,190.7

71.4

3.41

3,917.5

72.9

3.72

Home Equity1,583.7

24.7

3.14

1,672.7

29.5

3.55

Automobile709.3

12.2

3.48

711.1

12.6

3.56

Other 2375.7

12.4

6.64

474.5

16.3

6.92

Total Loans and Leases12,024.8

200.2

3.35

11,394.2

215.9

3.80

Other32.9

0.4

2.24

34.2

0.3

2.01

Total Earning Assets 320,479.4

260.8

2.56

17,545.0

284.8

3.26

Cash and Due from Banks263.4

290.6

Other Assets871.9

870.5

Total Assets$

21,614.7

$

18,706.1

Interest-Bearing LiabilitiesInterest-Bearing DepositsDemand$

4,320.2

1.3

0.06

$

3,168.3

1.5

0.10

Savings7,276.2

3.3

0.09

6,596.9

9.3

0.28

Time1,523.6

3.9

0.52

1,784.9

11.4

1.28

Total Interest-Bearing Deposits13,120.0

8.5

0.13

11,550.1

22.2

0.39

Short-Term Borrowings1.2

-

0.09

57.7

0.2

0.52

Securities Sold Under Agreements to Repurchase585.3

7.0

2.38

603.5

8.0

2.64

Other Debt45.3

0.6

2.56

63.7

1.0

3.23

Total Interest-Bearing Liabilities13,751.8

16.1

0.23

12,275.0

31.4

0.51

Net Interest Income$

244.7

$

253.4

Interest Rate Spread2.33

%

2.75

%

Net Interest Margin2.40

%

2.90

%

Noninterest-Bearing Demand Deposits6,064.6

4,698.5

Other Liabilities403.1

400.0

Shareholders' Equity1,395.2

1,332.6

Total Liabilities and Shareholders' Equity$

21,614.7

$

18,706.1

Bank of Hawaii Corporation and SubsidiariesAverage Balances and Interest Rates - Table 7bTaxable-Equivalent Basis Six Months Ended Six Months Ended June 30, 2021 June 30, 2020 Average Income/ Yield/ Average Income/ Yield/(dollars in millions) Balance Expense Rate Balance Expense RateEarning AssetsInterest-Bearing $ 2.7 $ - 0.56 % $ 2.0 $ - 0.96 %Deposits in OtherBanksFunds Sold 749.5 0.4 0.11 349.3 0.6 0.36

Investment SecuritiesAvailable-for-SaleTaxable 4,150.2 32.1 1.55 2,658.3 30.8 2.31

Non-Taxable 12.3 0.3 4.27 32.3 0.7 4.43

Held-to-MaturityTaxable 3,441.3 26.5 1.54 2,996.9 35.4 2.36

Non-Taxable 39.8 0.5 2.54 54.5 0.7 2.67

Total Investment 7,643.6 59.4 1.55 5,742.0 67.6 2.35 SecuritiesLoans Held for Sale 25.9 0.4 2.81 23.3 0.4 3.39

Loans and Leases ^1Commercial and 1,919.5 31.2 3.27 1,686.5 31.1 3.71 IndustrialCommercial Mortgage 2,864.9 42.6 3.00 2,586.2 47.4 3.69

Construction 274.9 4.9 3.57 234.6 5.0 4.26

Commercial Lease 106.1 0.8 1.48 111.1 1.1 1.91 FinancingResidential Mortgage 4,190.7 71.4 3.41 3,917.5 72.9 3.72

Home Equity 1,583.7 24.7 3.14 1,672.7 29.5 3.55

Automobile 709.3 12.2 3.48 711.1 12.6 3.56

Other ^2 375.7 12.4 6.64 474.5 16.3 6.92

Total Loans and 12,024.8 200.2 3.35 11,394.2 215.9 3.80 LeasesOther 32.9 0.4 2.24 34.2 0.3 2.01

Total Earning Assets 20,479.4 260.8 2.56 17,545.0 284.8 3.26 ^3Cash and Due from 263.4 290.6BanksOther Assets 871.9 870.5

Total Assets $ 21,614.7 $ 18,706.1

Interest-BearingLiabilitiesInterest-BearingDepositsDemand $ 4,320.2 1.3 0.06 $ 3,168.3 1.5 0.10

Savings 7,276.2 3.3 0.09 6,596.9 9.3 0.28

Time 1,523.6 3.9 0.52 1,784.9 11.4 1.28

Total 13,120.0 8.5 0.13 11,550.1 22.2 0.39 Interest-BearingDepositsShort-Term Borrowings 1.2 - 0.09 57.7 0.2 0.52

Securities Sold Under 585.3 7.0 2.38 603.5 8.0 2.64 Agreements toRepurchaseOther Debt 45.3 0.6 2.56 63.7 1.0 3.23

Total 13,751.8 16.1 0.23 12,275.0 31.4 0.51 Interest-BearingLiabilitiesNet Interest Income $ 244.7 $ 253.4

Interest Rate Spread 2.33 % 2.75 %

Net Interest Margin 2.40 % 2.90 %

Noninterest-Bearing 6,064.6 4,698.5Demand DepositsOther Liabilities 403.1 400.0

Shareholders' Equity 1,395.2 1,332.6

Total Liabilities and $ 21,614.7 $ 18,706.1Shareholders' 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 $521,000 and $715,000 for the six months ended June 30, 2021 and June 30, 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 a3 federal statutory tax rate of 21%, of $521,000 and $715,000 for the six months ended June 30, 2021 and June 30, 2020, respectively.Bank of Hawaii Corporation and SubsidiariesAnalysis of Change in Net Interest Income - Taxable-Equivalent BasisTable 8a

Three Months Ended June 30, 2021Compared to March 31, 2021(dollars in millions)Volume 1Rate 1TotalChange in Interest Income:Funds Sold$

0.1

$

0.1

$

0.2

Investment SecuritiesAvailable-for-SaleTaxable1.1

(0.6

)

0.5

Held-to-MaturityTaxable0.4

(0.1

)

0.3

Non-Taxable0.1

-

0.1

Total Investment Securities1.6

(0.7

)

0.9

Loans and LeasesCommercial and Industrial0.2

2.3

2.5

Commercial Mortgage0.4

(0.4

)

-

Construction0.2

0.1

0.3

Residential Mortgage0.8

(1.1

)

(0.3

)

Home Equity(0.2

)

(0.3

)

(0.5

)

Other 2(0.2

)

(0.2

)

(0.4

)

Total Loans and Leases1.2

0.4

1.6

Total Change in Interest Income2.9

(0.2

)

2.7

Change in Interest Expense:Interest-Bearing DepositsDemand-

0.1

0.1

Savings0.1

0.2

0.3

Time(0.2

)

(0.3

)

(0.5

)

Total Interest-Bearing Deposits(0.1

)

-

(0.1

)

Securities Sold Under Agreements to Repurchase(0.2

)

0.1

(0.1

)

Other Debt(0.2

)

0.1

(0.1

)

Total Change in Interest Expense(0.5

)

0.2

(0.3

)

Change in Net Interest Income$

3.4

$

(0.4

)

$

3.0

Bank of Hawaii Corporation and SubsidiariesAnalysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8a

Three Months Ended June 30, 2021 Compared to March 31, 2021(dollars in millions) Volume ^1 Rate ^1 TotalChange in Interest Income:Funds Sold $ 0.1 $ 0.1 $ 0.2

Investment SecuritiesAvailable-for-SaleTaxable 1.1 (0.6 ) 0.5

Held-to-MaturityTaxable 0.4 (0.1 ) 0.3

Non-Taxable 0.1 - 0.1

Total Investment Securities 1.6 (0.7 ) 0.9

Loans and LeasesCommercial and Industrial 0.2 2.3 2.5

Commercial Mortgage 0.4 (0.4 ) -

Construction 0.2 0.1 0.3

Residential Mortgage 0.8 (1.1 ) (0.3 )

Home Equity (0.2 ) (0.3 ) (0.5 )

Other ^2 (0.2 ) (0.2 ) (0.4 )

Total Loans and Leases 1.2 0.4 1.6

Total Change in Interest Income 2.9 (0.2 ) 2.7

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

Savings 0.1 0.2 0.3

Time (0.2 ) (0.3 ) (0.5 )

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

Securities Sold Under Agreements to Repurchase (0.2 ) 0.1 (0.1 )

Other Debt (0.2 ) 0.1 (0.1 )

Total Change in Interest Expense (0.5 ) 0.2 (0.3 )

Change in Net Interest Income $ 3.4 $ (0.4 ) $ 3.0

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 June 30, 2021Compared to June 30, 2020(dollars in millions)Volume 1Rate 1TotalChange in Interest Income:Funds Sold$

0.1

$

0.1

$

0.2

Investment SecuritiesAvailable-for-SaleTaxable7.2

(5.2

)

2.0

Non-Taxable(0.2

)

(0.1

)

(0.3

)

Held-to-MaturityTaxable2.7

(5.7

)

(3.0

)

Non-Taxable(0.1

)

-

(0.1

)

Total Investment Securities9.6

(11.0

)

(1.4

)

Loans and LeasesCommercial and Industrial(0.2

)

(0.9

)

(1.1

)

Commercial Mortgage2.1

(3.1

)

(1.0

)

Construction0.3

(0.2

)

0.1

Commercial Lease Financing-

(0.1

)

(0.1

)

Residential Mortgage2.6

(3.0

)

(0.4

)

Home Equity(0.8

)

(1.4

)

(2.2

)

Automobile0.1

(0.2

)

(0.1

)

Other 2(1.6

)

(0.3

)

(1.9

)

Total Loans and Leases2.5

(9.2

)

(6.7

)

Other-

0.1

0.1

Total Change in Interest Income12.2

(20.0

)

(7.8

)

Change in Interest Expense:Interest-Bearing DepositsDemand0.2

(0.1

)

0.1

Savings0.3

(0.7

)

(0.4

)

Time(1.0

)

(2.5

)

(3.5

)

Total Interest-Bearing Deposits(0.5

)

(3.3

)

(3.8

)

Securities Sold Under Agreements to Repurchase(0.2

)

(0.3

)

(0.5

)

Other Debt(0.3

)

-

(0.3

)

Total Change in Interest Expense(1.0

)

(3.6

)

(4.6

)

Change in Net Interest Income$

13.2

$

(16.4

)

$

(3.2

)

Bank of Hawaii Corporation and SubsidiariesAnalysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8b Three Months Ended June 30, 2021 Compared to June 30, 2020(dollars in millions) Volume ^ Rate ^1 Total 1Change in Interest Income:Funds Sold $ 0.1 $ 0.1 $ 0.2

Investment SecuritiesAvailable-for-SaleTaxable 7.2 (5.2 ) 2.0

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

Held-to-MaturityTaxable 2.7 (5.7 ) (3.0 )

Non-Taxable (0.1 ) - (0.1 )

Total Investment Securities 9.6 (11.0 ) (1.4 )

Loans and LeasesCommercial and Industrial (0.2 ) (0.9 ) (1.1 )

Commercial Mortgage 2.1 (3.1 ) (1.0 )

Construction 0.3 (0.2 ) 0.1

Commercial Lease Financing - (0.1 ) (0.1 )

Residential Mortgage 2.6 (3.0 ) (0.4 )

Home Equity (0.8 ) (1.4 ) (2.2 )

Automobile 0.1 (0.2 ) (0.1 )

Other ^2 (1.6 ) (0.3 ) (1.9 )

Total Loans and Leases 2.5 (9.2 ) (6.7 )

Other - 0.1 0.1

Total Change in Interest Income 12.2 (20.0 ) (7.8 )

Change in Interest Expense:Interest-Bearing DepositsDemand 0.2 (0.1 ) 0.1

Savings 0.3 (0.7 ) (0.4 )

Time (1.0 ) (2.5 ) (3.5 )

Total Interest-Bearing Deposits (0.5 ) (3.3 ) (3.8 )

Securities Sold Under Agreements to Repurchase (0.2 ) (0.3 ) (0.5 )

Other Debt (0.3 ) - (0.3 )

Total Change in Interest Expense (1.0 ) (3.6 ) (4.6 )

Change in Net Interest Income $ 13.2 $ (16.4 ) $ (3.2 )

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 8cSix Months Ended June 30, 2021Compared to June 30, 2020(dollars in millions)Volume 1Rate 1TotalChange in Interest Income:Funds Sold$

0.4

$

(0.6

)

$

(0.2

)

Investment SecuritiesAvailable-for-SaleTaxable13.6

(12.3

)

1.3

Non-Taxable(0.4

)

-

(0.4

)

Held-to-MaturityTaxable4.7

(13.6

)

(8.9

)

Non-Taxable(0.2

)

-

(0.2

)

Total Investment Securities17.7

(25.9

)

(8.2

)

Loans Held for Sale0.1

(0.1

)

-

Loans and LeasesCommercial and Industrial4.0

(3.9

)

0.1

Commercial Mortgage4.7

(9.5

)

(4.8

)

Construction0.8

(0.9

)

(0.1

)

Commercial Lease Financing(0.1

)

(0.2

)

(0.3

)

Residential Mortgage4.9

(6.4

)

(1.5

)

Home Equity(1.5

)

(3.3

)

(4.8

)

Automobile(0.1

)

(0.3

)

(0.4

)

Other 2(3.3

)

(0.6

)

(3.9

)

Total Loans and Leases9.4

(25.1

)

(15.7

)

Other-

0.1

0.1

Total Change in Interest Income27.6

(51.6

)

(24.0

)

Change in Interest Expense:Interest-Bearing DepositsDemand0.4

(0.6

)

(0.2

)

Savings0.9

(6.9

)

(6.0

)

Time(1.5

)

(6.0

)

(7.5

)

Total Interest-Bearing Deposits(0.2

)

(13.5

)

(13.7

)

Short-Term Borrowings(0.1

)

(0.1

)

(0.2

)

Securities Sold Under Agreements to Repurchase(0.2

)

(0.8

)

(1.0

)

Other Debt(0.3

)

(0.1

)

(0.4

)

Total Change in Interest Expense(0.8

)

(14.5

)

(15.3

)

Change in Net Interest Income$

28.4

$

(37.1

)

$

(8.7

)

Bank of Hawaii Corporation and SubsidiariesAnalysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8c Six Months Ended June 30, 2021 Compared to June 30, 2020(dollars in millions) Volume ^1 Rate ^1 TotalChange in Interest Income:Funds Sold $ 0.4 $ (0.6 ) $ (0.2 )

Investment SecuritiesAvailable-for-SaleTaxable 13.6 (12.3 ) 1.3

Non-Taxable (0.4 ) - (0.4 )

Held-to-MaturityTaxable 4.7 (13.6 ) (8.9 )

Non-Taxable (0.2 ) - (0.2 )

Total Investment Securities 17.7 (25.9 ) (8.2 )

Loans Held for Sale 0.1 (0.1 ) -

Loans and LeasesCommercial and Industrial 4.0 (3.9 ) 0.1

Commercial Mortgage 4.7 (9.5 ) (4.8 )

Construction 0.8 (0.9 ) (0.1 )

Commercial Lease Financing (0.1 ) (0.2 ) (0.3 )

Residential Mortgage 4.9 (6.4 ) (1.5 )

Home Equity (1.5 ) (3.3 ) (4.8 )

Automobile (0.1 ) (0.3 ) (0.4 )

Other ^2 (3.3 ) (0.6 ) (3.9 )

Total Loans and Leases 9.4 (25.1 ) (15.7 )

Other - 0.1 0.1

Total Change in Interest Income 27.6 (51.6 ) (24.0 )

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

Savings 0.9 (6.9 ) (6.0 )

Time (1.5 ) (6.0 ) (7.5 )

Total Interest-Bearing Deposits (0.2 ) (13.5 ) (13.7 )

Short-Term Borrowings (0.1 ) (0.1 ) (0.2 )

Securities Sold Under Agreements to Repurchase (0.2 ) (0.8 ) (1.0 )

Other Debt (0.3 ) (0.1 ) (0.4 )

Total Change in Interest Expense (0.8 ) (14.5 ) (15.3 )

Change in Net Interest Income $ 28.4 $ (37.1 ) $ (8.7 )

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 EndedSix Months EndedJune 30,March 31,June 30,June 30,(dollars in thousands)2021

2021

2020

2021

2020

Salaries$

33,413

$

31,569

$

32,739

$

64,982

$

66,225

Incentive Compensation5,172

5,914

3,141

11,086

3,386

Share-Based Compensation3,174

2,584

2,021

5,758

3,312

Commission Expense2,599

2,436

1,647

5,035

3,021

Retirement and Other Benefits5,289

5,517

4,446

10,806

9,152

Payroll Taxes3,026

3,968

2,782

6,994

7,325

Medical, Dental, and Life Insurance3,204

2,424

3,830

5,628

7,972

Separation Expense284

1,839

109

2,123

4,785

Total Salaries and Benefits$

56,161

$

56,251

$

50,715

$

112,412

$

105,178

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) 2021 2021 2020 2021 2020

Salaries $ 33,413 $ 31,569 $ 32,739 $ 64,982 $ 66,225

Incentive Compensation 5,172 5,914 3,141 11,086 3,386

Share-Based Compensation 3,174 2,584 2,021 5,758 3,312

Commission Expense 2,599 2,436 1,647 5,035 3,021

Retirement and Other Benefits 5,289 5,517 4,446 10,806 9,152

Payroll Taxes 3,026 3,968 2,782 6,994 7,325

Medical, Dental, and Life 3,204 2,424 3,830 5,628 7,972InsuranceSeparation Expense 284 1,839 109 2,123 4,785

Total Salaries and Benefits $ 56,161 $ 56,251 $ 50,715 $ 112,412 $ 105,178

Bank of Hawaii Corporation and SubsidiariesLoan and Lease Portfolio BalancesTable 10June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)2021

2021

2020

2020

2020

CommercialCommercial and Industrial$

1,257,305

$

1,288,496

$

1,357,610

$

1,376,843

$

1,428,481

PPP 1513,513

725,485

517,683

531,639

528,458

Commercial Mortgage2,944,435

2,859,246

2,854,829

2,745,611

2,707,534

Construction277,393

281,164

259,798

250,943

245,099

Lease Financing110,500

104,980

110,766

111,831

113,187

Total Commercial5,103,146

5,259,371

5,100,686

5,016,867

5,022,759

ConsumerResidential Mortgage4,264,180

4,216,976

4,130,513

4,044,228

3,989,393

Home Equity1,594,781

1,577,500

1,604,538

1,605,486

1,640,887

Automobile714,729

710,407

708,800

709,937

700,702

Other 2364,542

376,449

395,483

417,090

451,629

Total Consumer6,938,232

6,881,332

6,839,334

6,776,741

6,782,611

Total Loans and Leases$

12,041,378

$

12,140,703

$

11,940,020

$

11,793,608

$

11,805,370

DepositsJune 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)2021

2021

2020

2020

2020

Consumer$

9,848,285

$

9,746,713

$

9,347,725

$

8,903,808

$

8,766,885

Commercial8,675,909

8,241,102

7,302,832

7,159,531

7,295,033

Public and Other1,645,515

1,568,836

1,561,064

1,675,544

1,361,237

Total Deposits$

20,169,709

$

19,556,651

$

18,211,621

$

17,738,883

$

17,423,155

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

(dollars in 2021 2021 2020 2020 2020thousands)CommercialCommercial $ 1,257,305 $ 1,288,496 $ 1,357,610 $ 1,376,843 $ 1,428,481andIndustrialPPP ^1 513,513 725,485 517,683 531,639 528,458

Commercial 2,944,435 2,859,246 2,854,829 2,745,611 2,707,534MortgageConstruction 277,393 281,164 259,798 250,943 245,099

Lease 110,500 104,980 110,766 111,831 113,187FinancingTotal 5,103,146 5,259,371 5,100,686 5,016,867 5,022,759CommercialConsumerResidential 4,264,180 4,216,976 4,130,513 4,044,228 3,989,393MortgageHome Equity 1,594,781 1,577,500 1,604,538 1,605,486 1,640,887

Automobile 714,729 710,407 708,800 709,937 700,702

Other ^2 364,542 376,449 395,483 417,090 451,629

Total 6,938,232 6,881,332 6,839,334 6,776,741 6,782,611ConsumerTotal Loans $ 12,041,378 $ 12,140,703 $ 11,940,020 $ 11,793,608 $ 11,805,370and Leases Deposits June 30, March 31, December 31, September June 30, 30,

(dollars in 2021 2021 2020 2020 2020thousands)Consumer $ 9,848,285 $ 9,746,713 $ 9,347,725 $ 8,903,808 $ 8,766,885

Commercial 8,675,909 8,241,102 7,302,832 7,159,531 7,295,033

Public and 1,645,515 1,568,836 1,561,064 1,675,544 1,361,237OtherTotal $ 20,169,709 $ 19,556,651 $ 18,211,621 $ 17,738,883 $ 17,423,155Deposits1

The PPP amounts presented, which are reported net of deferred costs and fees, were previously included as a component of the Commercial and Industrial loan class.2

Comprised of other revolving credit, installment, and lease financing.^ The PPP amounts presented, which are reported net of deferred costs and fees,1 were previously included as a component of the Commercial and Industrial loan class.^2 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 11June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)2021

2021

2020

2020

2020

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

258

$

293

$

441

$

475

$

459

Commercial Mortgage8,413

8,503

8,527

8,615

8,672

Total Commercial8,671

8,796

8,968

9,090

9,131

ConsumerResidential Mortgage2,437

1,804

3,223

3,543

5,888

Home Equity5,534

4,951

3,958

3,661

5,176

Total Consumer7,971

6,755

7,181

7,204

11,064

Total Non-Accrual Loans and Leases16,642

15,551

16,149

16,294

20,195

Foreclosed Real Estate2,332

2,332

2,332

2,332

2,506

Total Non-Performing Assets$

18,974

$

17,883

$

18,481

$

18,626

$

22,701

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

-

$

9

$

-

$

-

$

-

Total Commercial-

9

-

-

-

ConsumerResidential Mortgage$

4,069

$

4,069

$

5,274

$

6,607

$

4,937

Home Equity4,498

4,906

3,187

2,571

3,519

Automobile277

604

925

156

133

Other 1434

828

1,160

258

296

Total Consumer9,278

10,407

10,546

9,592

8,885

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

9,278

$

10,416

$

10,546

$

9,592

$

8,885

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

74,926

$

74,216

$

68,065

$

58,650

$

59,713

Total Loans and Leases$

12,041,378

$

12,140,703

$

11,940,020

$

11,793,608

$

11,805,370

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases0.14

%

0.13

%

0.14

%

0.14

%

0.17

%

Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate0.16

%

0.15

%

0.15

%

0.16

%

0.19

%

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

%

0.17

%

0.18

%

0.18

%

0.18

%

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

%

0.13

%

0.14

%

0.14

%

0.20

%

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

%

0.23

%

0.24

%

0.24

%

0.27

%

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

17,883

$

18,481

$

18,626

$

22,701

$

20,604

Additions2,229

2,992

434

938

5,856

ReductionsPayments(722

)

(2,481

)

(490

)

(3,729

)

(2,736

)

Return to Accrual Status(416

)

(1,014

)

-

(1,035

)

(822

)

Sales of Foreclosed Real Estate-

-

-

(175

)

-

Charge-offs/Write-downs-

(95

)

(89

)

(74

)

(201

)

Total Reductions(1,138

)

(3,590

)

(579

)

(5,013

)

(3,759

)

Balance at End of Quarter$

18,974

$

17,883

$

18,481

$

18,626

$

22,701

Bank of Hawaii Corporation andSubsidiariesNon-Performing Assets and Accruing Loans and Leases Past Due Table 1190 Days or More June 30, March 31, December 31, September 30, June 30,

(dollars in 2021 2021 2020 2020 2020thousands)Non-PerformingAssetsNon-AccrualLoans andLeasesCommercialCommercial and $ 258 $ 293 $ 441 $ 475 $ 459 IndustrialCommercial 8,413 8,503 8,527 8,615 8,672 MortgageTotal 8,671 8,796 8,968 9,090 9,131 CommercialConsumerResidential 2,437 1,804 3,223 3,543 5,888 MortgageHome Equity 5,534 4,951 3,958 3,661 5,176

Total Consumer 7,971 6,755 7,181 7,204 11,064

TotalNon-Accrual 16,642 15,551 16,149 16,294 20,195 Loans andLeasesForeclosed 2,332 2,332 2,332 2,332 2,506 Real EstateTotal $ 18,974 $ 17,883 $ 18,481 $ 18,626 $ 22,701 Non-PerformingAssets Accruing Loansand LeasesPast Due 90Days or MoreCommercialCommercial and $ - $ 9 $ - $ - $ - IndustrialTotal - 9 - - - CommercialConsumerResidential $ 4,069 $ 4,069 $ 5,274 $ 6,607 $ 4,937 MortgageHome Equity 4,498 4,906 3,187 2,571 3,519

Automobile 277 604 925 156 133

Other^ 1 434 828 1,160 258 296

Total Consumer 9,278 10,407 10,546 9,592 8,885

Total AccruingLoans and $ 9,278 $ 10,416 $ 10,546 $ 9,592 $ 8,885 Leases PastDue 90 Days orMoreRestructuredLoans onAccrual Status $ 74,926 $ 74,216 $ 68,065 $ 58,650 $ 59,713 and Not PastDue 90 Days orMoreTotal Loans $ 12,041,378 $ 12,140,703 $ 11,940,020 $ 11,793,608 $ 11,805,370 and Leases Ratio ofNon-AccrualLoans and 0.14 % 0.13 % 0.14 % 0.14 % 0.17 %Leases toTotal Loansand Leases Ratio ofNon-PerformingAssets to 0.16 % 0.15 % 0.15 % 0.16 % 0.19 %Total Loansand Leases andForeclosedReal Estate Ratio ofCommercialNon-PerformingAssets toTotal 0.17 % 0.17 % 0.18 % 0.18 % 0.18 %CommercialLoans andLeases andCommercialForeclosedReal Estate Ratio ofConsumerNon-PerformingAssets toTotal Consumer 0.15 % 0.13 % 0.14 % 0.14 % 0.20 %Loans andLeases andConsumerForeclosedReal Estate Ratio ofNon-PerformingAssets andAccruing Loansand Leases 0.23 % 0.23 % 0.24 % 0.24 % 0.27 %Past Due 90Days or Moreto Total Loansand Leases andForeclosedReal Estate Quarter toQuarterChanges inNon-PerformingAssetsBalance at $ 17,883 $ 18,481 $ 18,626 $ 22,701 $ 20,604 Beginning ofQuarterAdditions 2,229 2,992 434 938 5,856

ReductionsPayments (722 ) (2,481 ) (490 ) (3,729 ) (2,736 )

Return to (416 ) (1,014 ) - (1,035 ) (822 )Accrual StatusSales of - - - (175 ) - ForeclosedReal EstateCharge-offs/ - (95 ) (89 ) (74 ) (201 )Write-downsTotal (1,138 ) (3,590 ) (579 ) (5,013 ) (3,759 )ReductionsBalance at End $ 18,974 $ 17,883 $ 18,481 $ 18,626 $ 22,701 of Quarter1

Comprised 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 EndedSix Months EndedJune 30,March 31,June 30,June 30,(dollars in thousands)2021

2021

2020

2021

2020

Balance at Beginning of Period$

203,779

$

221,303

$

141,467

$

221,303

116,849

CECL Adoption (Day 1) Impact-

-

-

-

(5,072

)

Loans and Leases Charged-OffCommercialCommercial and Industrial(456

)

(248

)

(656

)

(704

)

(1,349

)

ConsumerResidential Mortgage(115

)

(4

)

(64

)

(119

)

(84

)

Home Equity(107

)

(16

)

(273

)

(123

)

(273

)

Automobile(1,209

)

(2,109

)

(3,114

)

(3,318

)

(5,614

)

Other 1(2,422

)

(3,914

)

(4,176

)

(6,336

)

(8,140

)

Total Loans and Leases Charged-Off(4,309

)

(6,291

)

(8,283

)

(10,600

)

(15,460

)

Recoveries on Loans and Leases Previously Charged-OffCommercialCommercial and Industrial144

112

1,524

256

1,813

Commercial Mortgage-

-

-

-

40

ConsumerResidential Mortgage481

955

118

1,436

381

Home Equity527

533

321

1,060

1,297

Automobile1,172

919

547

2,091

1,552

Other 1801

856

662

1,657

1,526

Total Recoveries on Loans and Leases Previously Charged-Off3,125

3,375

3,172

6,500

6,609

Net Charged-Off - Loans and Leases(1,184

)

(2,916

)

(5,111

)

(4,100

)

(8,851

)

Net Charged-Off - Accrued Interest Receivable(124

)

(308

)

-

(432

)

Provision for Credit Losses:Loans and Leases(16,774

)

(14,993

)

40,400

(31,767

)

74,000

Accrued Interest Receivable(828

)

-

-

(828

)

-

Unfunded Commitments1,502

693

(798

)

2,195

(968

)

Balance at End of Period 2$

186,371

$

203,779

$

175,958

$

186,371

$

175,958

ComponentsAllowance for Credit Losses - Loans and Leases$

180,385

198,343

173,439

$

180,385

173,439

Allowance for Credit Losses - Accrued Interest Receivable1,440

2,392

-

1,440

-

Reserve for Unfunded Commitments4,546

3,044

2,519

4,546

2,519

Total Reserve for Credit Losses$

186,371

$

203,779

$

175,958

$

186,371

$

175,958

Average Loans and Leases Outstanding$

12,096,308

$

11,952,587

$

11,727,649

$

12,024,844

$

11,394,178

Ratio of Net Loans and Leases Charged-Off toAverage Loans and Leases Outstanding (annualized)0.04

%

0.10

%

0.18

%

0.07

%

0.16

%

Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 31.50

%

1.63

%

1.47

%

1.50

%

1.47

%

Bank of Hawaii Corporationand SubsidiariesReserve forCredit Table 12Losses Three Months Ended Six Months Ended June 30, March 31, June 30, June 30,(dollars in 2021 2021 2020 2021 2020thousands)Balance at $ 203,779 $ 221,303 $ 141,467 $ 221,303 116,849 Beginning ofPeriod CECLAdoption - - - - (5,072 )(Day 1)Impact Loans andLeasesCharged-OffCommercialCommercial (456 ) (248 ) (656 ) (704 ) (1,349 )andIndustrialConsumerResidential (115 ) (4 ) (64 ) (119 ) (84 )MortgageHome Equity (107 ) (16 ) (273 ) (123 ) (273 )

Automobile (1,209 ) (2,109 ) (3,114 ) (3,318 ) (5,614 )

Other ^1 (2,422 ) (3,914 ) (4,176 ) (6,336 ) (8,140 )

Total Loans (4,309 ) (6,291 ) (8,283 ) (10,600 ) (15,460 )and LeasesCharged-OffRecoverieson Loans andLeasesPreviouslyCharged-OffCommercialCommercial 144 112 1,524 256 1,813 andIndustrialCommercial - - - - 40 MortgageConsumerResidential 481 955 118 1,436 381 MortgageHome Equity 527 533 321 1,060 1,297

Automobile 1,172 919 547 2,091 1,552

Other ^1 801 856 662 1,657 1,526

TotalRecoverieson Loans and 3,125 3,375 3,172 6,500 6,609 LeasesPreviouslyCharged-OffNetCharged-Off (1,184 ) (2,916 ) (5,111 ) (4,100 ) (8,851 )- Loans andLeasesNetCharged-Off (124 ) (308 ) - (432 )- AccruedInterestReceivableProvisionfor CreditLosses:Loans and (16,774 ) (14,993 ) 40,400 (31,767 ) 74,000 LeasesAccrued (828 ) - - (828 ) - InterestReceivableUnfunded 1,502 693 (798 ) 2,195 (968 )CommitmentsBalance at $ 186,371 $ 203,779 $ 175,958 $ 186,371 $ 175,958 End ofPeriod ^2 ComponentsAllowancefor Credit $ 180,385 198,343 173,439 $ 180,385 173,439 Losses -Loans andLeasesAllowancefor CreditLosses - 1,440 2,392 - 1,440 - AccruedInterestReceivableReserve for 4,546 3,044 2,519 4,546 2,519 UnfundedCommitmentsTotalReserve for $ 186,371 $ 203,779 $ 175,958 $ 186,371 $ 175,958 CreditLosses AverageLoans and $ 12,096,308 $ 11,952,587 $ 11,727,649 $ 12,024,844 $ 11,394,178 LeasesOutstanding Ratio of NetLoans andLeasesCharged-OfftoAverageLoans and 0.04 % 0.10 % 0.18 % 0.07 % 0.16 %LeasesOutstanding(annualized)Ratio ofAllowancefor CreditLosses to 1.50 % 1.63 % 1.47 % 1.50 % 1.47 %Loans andLeasesOutstanding^31

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

Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.3

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

^ Included in this analysis is activity related to the Company's reserve for2 unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.^3 The numerator comprises the Allowance for Credit Losses - Loans and Leases.

Bank of Hawaii Corporation and SubsidiariesBusiness Segments Selected Financial InformationTable 13aConsumerCommercialTreasuryConsolidated(dollars in thousands)BankingBankingand OtherTotalThree Months Ended June 30, 2021Net Interest Income$

71,167

$

49,038

$

3,309

$

123,514

Provision for Credit Losses987

197

(17,284

)

(16,100

)

Net Interest Income After Provision for Credit Losses70,180

48,841

20,593

139,614

Noninterest Income32,600

6,575

5,256

44,431

Noninterest Expense(72,868

)

(15,742

)

(7,917

)

(96,527

)

Income Before Income Taxes29,912

39,674

17,932

87,518

Provision for Income Taxes(7,365

)

(9,703

)

(2,917

)

(19,985

)

Net Income$

22,547

$

29,971

$

15,015

$

67,533

Total Assets as of June 30, 2021$

7,479,986

$

5,127,431

$

10,064,766

$

22,672,183

Three Months Ended June 30, 2020 1Net Interest Income$

73,221

$

51,219

$

2,251

$

126,691

Provision for Credit Losses6,137

(1,025

)

35,288

40,400

Net Interest Income (Loss) After Provision for Credit Losses67,084

52,244

(33,037

)

86,291

Noninterest Income28,943

7,076

15,249

51,268

Noninterest Expense(70,590

)

(14,776

)

(3,526

)

(88,892

)

Income (Loss) Before Income Taxes25,437

44,544

(21,314

)

48,667

Provision for Income Taxes(6,492

)

(10,940

)

7,673

(9,759

)

Net Income (Loss)$

18,945

$

33,604

$

(13,641

)

$

38,908

Total Assets as of June 30, 2020 1$

7,416,090

$

5,033,169

$

7,320,683

$

19,769,942

Bank of Hawaii Corporation and SubsidiariesBusiness Segments Selected Financial Information Table 13a Consumer Commercial Treasury Consolidated(dollars in Banking Banking and Other Totalthousands)Three MonthsEnded June 30,2021Net Interest $ 71,167 $ 49,038 $ 3,309 $ 123,514 IncomeProvision for 987 197 (17,284 ) (16,100 )Credit LossesNet InterestIncome After 70,180 48,841 20,593 139,614 Provision forCredit LossesNoninterest 32,600 6,575 5,256 44,431 IncomeNoninterest (72,868 ) (15,742 ) (7,917 ) (96,527 )ExpenseIncome Before 29,912 39,674 17,932 87,518 Income TaxesProvision for (7,365 ) (9,703 ) (2,917 ) (19,985 )Income TaxesNet Income $ 22,547 $ 29,971 $ 15,015 $ 67,533

Total Assets as $ 7,479,986 $ 5,127,431 $ 10,064,766 $ 22,672,183 of June 30, 2021 Three MonthsEnded June 30,2020 ^1Net 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 28,943 7,076 15,249 51,268 IncomeNoninterest (70,590 ) (14,776 ) (3,526 ) (88,892 )ExpenseIncome (Loss) 25,437 44,544 (21,314 ) 48,667 Before IncomeTaxesProvision for (6,492 ) (10,940 ) 7,673 (9,759 )Income TaxesNet Income (Loss) $ 18,945 $ 33,604 $ (13,641 ) $ 38,908

Total Assets as $ 7,416,090 $ 5,033,169 $ 7,320,683 $ 19,769,942 of June 30, 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 SubsidiariesBusiness Segments Selected Financial InformationTable 13bConsumerCommercialTreasuryConsolidated(dollars in thousands)BankingBankingand OtherTotalSix Months Ended June 30, 2021Net Interest Income$

140,929

$

96,181

$

6,973

$

244,083

Provision for Credit Losses3,853

247

(34,500

)

(30,400

)

Net Interest Income After Provision for Credit Losses137,076

95,934

41,473

274,483

Noninterest Income66,298

14,433

6,670

87,401

Noninterest Expense(151,049

)

(31,419

)

(12,924

)

(195,392

)

Income Before Income Taxes52,325

78,948

35,219

166,492

Provision for Income Taxes(12,839

)

(19,261

)

(6,910

)

(39,010

)

Net Income$

39,486

$

59,687

$

28,309

$

127,482

Total Assets as of June 30, 2021$

7,479,986

$

5,127,431

$

10,064,766

$

22,672,183

Six Months Ended June 30, 2020 1Net Interest Income$

147,135

$

96,456

$

9,066

$

252,657

Provision for Credit Losses9,588

(735

)

65,147

74,000

Net Interest Income (Loss) After Provision for Credit Losses137,547

97,191

(56,081

)

178,657

Noninterest Income61,533

18,811

17,073

97,417

Noninterest Expense(141,336

)

(32,122

)

(11,746

)

(185,204

)

Income (Loss) Before Income Taxes57,744

83,880

(50,754

)

90,870

Provision for Income Taxes(14,608

)

(20,494

)

17,882

(17,220

)

Net Income (Loss)$

43,136

$

63,386

$

(32,872

)

$

73,650

Total Assets as of June 30, 2020 1$

7,416,090

$

5,033,169

$

7,320,683

$

19,769,942

Bank of Hawaii Corporation and SubsidiariesBusiness Segments Selected Financial Information Table 13b Consumer Commercial Treasury Consolidated(dollars in Banking Banking and Other Totalthousands)Six Months EndedJune 30, 2021Net Interest $ 140,929 $ 96,181 $ 6,973 $ 244,083 IncomeProvision for 3,853 247 (34,500 ) (30,400 )Credit LossesNet InterestIncome After 137,076 95,934 41,473 274,483 Provision forCredit LossesNoninterest 66,298 14,433 6,670 87,401 IncomeNoninterest (151,049 ) (31,419 ) (12,924 ) (195,392 )ExpenseIncome Before 52,325 78,948 35,219 166,492 Income TaxesProvision for (12,839 ) (19,261 ) (6,910 ) (39,010 )Income TaxesNet Income $ 39,486 $ 59,687 $ 28,309 $ 127,482

Total Assets as $ 7,479,986 $ 5,127,431 $ 10,064,766 $ 22,672,183 of June 30, 2021 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 61,533 18,811 17,073 97,417 IncomeNoninterest (141,336 ) (32,122 ) (11,746 ) (185,204 )ExpenseIncome (Loss) 57,744 83,880 (50,754 ) 90,870 Before IncomeTaxesProvision for (14,608 ) (20,494 ) 17,882 (17,220 )Income TaxesNet Income (Loss) $ 43,136 $ 63,386 $ (32,872 ) $ 73,650

Total Assets as $ 7,416,090 $ 5,033,169 $ 7,320,683 $ 19,769,942 of June 30, 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 EndedJune 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands, except per share amounts)2021

2021

2020

2020

2020

Quarterly Operating ResultsInterest IncomeInterest and Fees on Loans and Leases$

100,894

$

99,299

$

98,471

$

103,189

$

107,628

Income on Investment SecuritiesAvailable-for-Sale16,467

15,837

15,449

14,558

14,576

Held-to-Maturity13,576

13,300

14,113

15,967

16,723

Deposits-

7

1

3

1

Funds Sold260

137

115

149

92

Other182

185

167

151

125

Total Interest Income131,379

128,765

128,316

134,017

139,145

Interest ExpenseDeposits4,152

4,329

4,861

5,891

7,954

Securities Sold Under Agreements to Repurchase3,470

3,533

3,614

3,622

4,020

Funds Purchased-

1

5

-

18

Short-Term Borrowings-

-

-

1

22

Other Debt243

333

337

337

440

Total Interest Expense7,865

8,196

8,817

9,851

12,454

Net Interest Income123,514

120,569

119,499

124,166

126,691

Provision for Credit Losses(16,100

)

(14,300

)

15,200

28,600

40,400

Net Interest Income After Provision for Credit Losses139,614

134,869

104,299

95,566

86,291

Noninterest IncomeTrust and Asset Management11,682

11,278

11,239

10,752

10,550

Mortgage Banking3,058

5,862

6,851

4,047

4,278

Service Charges on Deposit Accounts6,065

6,128

6,335

6,027

5,097

Fees, Exchange, and Other Service Charges13,807

13,607

12,143

12,296

9,417

Investment Securities Gains (Losses), Net2,423

(1,203

)

(1,193

)

(1,121

)

13,216

Annuity and Insurance911

702

670

881

883

Bank-Owned Life Insurance2,063

1,917

2,353

1,806

1,649

Other4,422

4,679

6,860

7,046

6,178

Total Noninterest Income44,431

42,970

45,258

41,734

51,268

Noninterest ExpenseSalaries and Benefits56,161

56,251

50,200

51,951

50,715

Net Occupancy5,047

9,090

14,536

7,281

8,761

Net Equipment8,796

8,878

9,574

9,223

8,195

Data Processing4,557

6,322

4,604

4,691

4,416

Professional Fees3,114

3,406

3,174

2,743

3,061

FDIC Insurance1,669

1,654

1,484

1,282

1,558

Other17,183

13,264

15,082

12,778

12,186

Total Noninterest Expense96,527

98,865

98,654

89,949

88,892

Income Before Provision for Income Taxes87,518

78,974

50,903

47,351

48,667

Provision for Income Taxes19,985

19,025

8,589

9,511

9,759

Net Income$

67,533

$

59,949

$

42,314

$

37,840

$

38,908

Basic Earnings Per Common Share$

1.69

$

1.51

$

1.06

$

0.95

$

0.98

Diluted Earnings Per Common Share$

1.68

$

1.50

$

1.06

$

0.95

$

0.98

Balance Sheet TotalsLoans and Leases$

12,041,378

$

12,140,703

$

11,940,020

$

11,793,608

$

11,805,370

Total Assets22,672,183

21,947,271

20,603,651

20,109,489

19,769,942

Total Deposits20,169,709

19,556,651

18,211,621

17,738,883

17,423,155

Total Shareholders' Equity1,583,531

1,360,221

1,374,507

1,361,739

1,352,082

Performance RatiosReturn on Average Assets1.23

%

1.15

%

0.83

%

0.76

%

0.82

%

Return on Average Shareholders' Equity19.17

17.65

12.26

11.01

11.58

Return on Average Common Equity19.60

17.65

12.26

11.01

11.58

Efficiency Ratio 157.47

60.45

59.88

54.22

49.95

Net Interest Margin 22.37

2.43

2.48

2.67

2.83

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

(dollars in 2021 2021 2020 2020 2020thousands, exceptper share amounts)QuarterlyOperating ResultsInterest IncomeInterest and Fees $ 100,894 $ 99,299 $ 98,471 $ 103,189 $ 107,628 on Loans andLeasesIncome onInvestmentSecuritiesAvailable-for-Sale 16,467 15,837 15,449 14,558 14,576

Held-to-Maturity 13,576 13,300 14,113 15,967 16,723

Deposits - 7 1 3 1

Funds Sold 260 137 115 149 92

Other 182 185 167 151 125

Total Interest 131,379 128,765 128,316 134,017 139,145 IncomeInterest ExpenseDeposits 4,152 4,329 4,861 5,891 7,954

Securities Sold 3,470 3,533 3,614 3,622 4,020 Under Agreementsto RepurchaseFunds Purchased - 1 5 - 18

Short-Term - - - 1 22 BorrowingsOther Debt 243 333 337 337 440

Total Interest 7,865 8,196 8,817 9,851 12,454 ExpenseNet Interest 123,514 120,569 119,499 124,166 126,691 IncomeProvision for (16,100 ) (14,300 ) 15,200 28,600 40,400 Credit LossesNet InterestIncome After 139,614 134,869 104,299 95,566 86,291 Provision forCredit LossesNoninterest IncomeTrust and Asset 11,682 11,278 11,239 10,752 10,550 ManagementMortgage Banking 3,058 5,862 6,851 4,047 4,278

Service Charges on 6,065 6,128 6,335 6,027 5,097 Deposit AccountsFees, Exchange, 13,807 13,607 12,143 12,296 9,417 and Other ServiceChargesInvestment 2,423 (1,203 ) (1,193 ) (1,121 ) 13,216 Securities Gains(Losses), NetAnnuity and 911 702 670 881 883 InsuranceBank-Owned Life 2,063 1,917 2,353 1,806 1,649 InsuranceOther 4,422 4,679 6,860 7,046 6,178

Total Noninterest 44,431 42,970 45,258 41,734 51,268 IncomeNoninterestExpenseSalaries and 56,161 56,251 50,200 51,951 50,715 BenefitsNet Occupancy 5,047 9,090 14,536 7,281 8,761

Net Equipment 8,796 8,878 9,574 9,223 8,195

Data Processing 4,557 6,322 4,604 4,691 4,416

Professional Fees 3,114 3,406 3,174 2,743 3,061

FDIC Insurance 1,669 1,654 1,484 1,282 1,558

Other 17,183 13,264 15,082 12,778 12,186

Total Noninterest 96,527 98,865 98,654 89,949 88,892 ExpenseIncome Before 87,518 78,974 50,903 47,351 48,667 Provision forIncome TaxesProvision for 19,985 19,025 8,589 9,511 9,759 Income TaxesNet Income $ 67,533 $ 59,949 $ 42,314 $ 37,840 $ 38,908

Basic Earnings Per $ 1.69 $ 1.51 $ 1.06 $ 0.95 $ 0.98 Common ShareDiluted Earnings $ 1.68 $ 1.50 $ 1.06 $ 0.95 $ 0.98 Per Common Share Balance SheetTotalsLoans and Leases $ 12,041,378 $ 12,140,703 $ 11,940,020 $ 11,793,608 $ 11,805,370

Total Assets 22,672,183 21,947,271 20,603,651 20,109,489 19,769,942

Total Deposits 20,169,709 19,556,651 18,211,621 17,738,883 17,423,155

Total 1,583,531 1,360,221 1,374,507 1,361,739 1,352,082 Shareholders'Equity Performance RatiosReturn on Average 1.23 % 1.15 % 0.83 % 0.76 % 0.82 %AssetsReturn on Average 19.17 17.65 12.26 11.01 11.58 Shareholders'EquityReturn on Average 19.60 17.65 12.26 11.01 11.58 Common EquityEfficiency Ratio ^ 57.47 60.45 59.88 54.22 49.95 1Net Interest 2.37 2.43 2.48 2.67 2.83 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 total revenue1 (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 15Five Months EndedYear Ended($ in millions; jobs in thousands)May 31, 2021December 31, 2020December 31, 2019Hawaii Economic TrendsState General Fund Revenues 1$

3,290.3

22.4

%

$

6,415.1

(12.3

)%

$

7,316.5

5.5

%

General Excise and Use Tax Revenue 1$

1,395.8

(2.3

)%

$

3,038.8

(15.6

)%

$

3,602.2

5.1

%

Jobs 2596.5

588.2

659.7

June 30,December 31,(spot rates)2021

2020

2019

Unemployment, seasonally adjusted 3Statewide7.7

%

10.3

%

2.1

%

Oahu6.7

9.3

2.0

Island of Hawaii7.5

10.1

2.5

Maui10.2

14.3

2.0

Kauai10.8

13.9

2.1

June 30,December 31,(percentage change, except months of inventory)2021

2020

2019

2018

Housing Trends (Single Family Oahu) 4Median Home Price21.0

%

5.2

%

(0.1

)%

4.6

%

Home Sales Volume (units)32.9

%

2.3

%

3.9

%

(7.7

)%

Months of Inventory1.2

1.4

2.5

2.8

Monthly Visitor Arrivals,Percentage Change(in thousands)Not Seasonally Adjustedfrom Previous YearTourism 5May 31, 2021629.7

6,807.4

April 30, 2021484.1

10,506.3

March 31, 2021439.8

1.1

February 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 and SubsidiariesHawaiiEconomic Table 15Trends Five Months Ended Year Ended($ inmillions; May 31, 2021 December 31, 2020 December 31, 2019jobs inthousands)HawaiiEconomicTrendsState General $ 3,290.3 22.4 % $ 6,415.1 (12.3 ) $ 7,316.5 5.5 %Fund Revenues %^ 1General ) )Excise and $ 1,395.8 (2.3 % $ 3,038.8 (15.6 % $ 3,602.2 5.1 %Use TaxRevenue^ 1Jobs ^2 596.5 588.2 659.7

June December 31, 30,(spot rates) 2021 2020 2019

Unemployment,seasonallyadjusted^ 3Statewide 7.7 % 10.3 % 2.1 %

Oahu 6.7 9.3 2.0

Island of 7.5 10.1 2.5 HawaiiMaui 10.2 14.3 2.0

Kauai 10.8 13.9 2.1

June 30, December 31,(percentagechange, 2021 2020 2019 2018except monthsof inventory)HousingTrends(SingleFamily Oahu)^4Median Home 21.0 % 5.2 % (0.1 ) 4.6 %Price %

Home Sales 32.9 % 2.3 % 3.9 % (7.7 )Volume %(units)Months of 1.2 1.4 2.5 2.8 Inventory Monthly Visitor Percentage Change Arrivals,(in Not Seasonally from Previous Yearthousands) AdjustedTourism ^5May 31, 2021 629.7 6,807.4

April 30, 484.1 10,506.3 2021March 31, 439.8 1.1 2021February 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 5.8 2020January 31, 862.6 5.1 2020December 31, 952.4 5.8 2019November 30, 809.1 3.9 2019October 31, 796.2 4.3 2019September 30, 738.2 3.1 2019August 31, 926.4 9.6 2019July 31, 2019 995.2 5.9

June 30, 2019 951.6 6.1

May 31, 2019 841.4 4.6

April 30, 856.3 6.6 2019March 31, 939.1 3.9 2019February 28, 782.7 0.5 2019January 31, 820.6 3.0 20191

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/20210726005163/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