Bank of Hawaii Corporation First Quarter 2020 Financial Results

Financial Release

Bank of Hawaii Corporation First Quarter 2020 Financial Results

April 20, 2020

BOH 1Q2020 Earnings 2.2 MB

Diluted Earnings Per Share $0.87
Net Income $34.7 Million
Company Adopts CECL and Records $33.6 Million Provision
Board of Directors Approves Dividend of $0.67 Per Share

HONOLULU,--(BUSINESS WIRE)--Apr. 20, 2020-- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.87 for the first quarter of 2020, a decrease from diluted earnings per share of $1.45 in the previous quarter and $1.43 in the same quarter last year. Net income for the first quarter of 2020 was $34.7 million compared with net income of $58.1 million in the fourth quarter of 2019 and $58.8 million in the first quarter of 2019. The decrease from the previous quarter is the result of an increased provision expense of $33.6 million compared with $4.8 million in the previous quarter and $3.0 million in the first quarter last year. The increase in the provision was related to changes in economic conditions driven by the impact of COVID-19 and considered the effect of significantly slower economic growth and higher unemployment in Hawaii partially offset by the benefits of government stimulus programs.

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"We were pleased with our overall financial performance during the first quarter of 2020 despite the challenges related to COVID-19," said Peter S. Ho, Chairman, President, and CEO. “Our strong balance sheet includes a high-quality securities portfolio, good asset quality, high levels of liquidity, and a solid capital base that will allow us to provide the financial support to our customers and community needed to emerge from the COVID-19 crisis.”

The return on average assets for the first quarter of 2020 was 0.77 percent compared with 1.29 percent during the previous quarter and 1.38 percent in the same quarter last year. The return on average equity for the first quarter of 2020 was 10.64 percent compared with 17.84 percent in the fourth quarter of 2019 and 18.81 percent in the first quarter of 2019.

Financial Highlights

Net interest income, on a taxable-equivalent basis, for the first quarter of 2020 was $126.3 million, an increase of $2.1 million from $124.2 million in the fourth quarter of 2019 and up $0.5 million from $125.8 million in the first quarter of 2019. The net interest margin was 2.96 percent for the first quarter of 2020, up 1 basis point compared with 2.95 percent in the previous quarter and down 16 basis points from 3.12 percent in the first quarter last year. Analyses of the changes in net interest income are included in Tables 8a and 8b.

Results for the first quarter of 2020 included a provision for credit losses of $33.6 million. The provision under CECL is reflective of the Company’s credit risk profile and the future economic outlook and forecasts. Upon adoption of CECL, the Company recorded a $1.7 million decrease to the allowance for loan and lease losses on January 1, 2020 that reflected a generally stable asset quality and economic outlook. At that time, the COVID-19 pandemic was not yet estimated to have the significant impact that ultimately transpired in the latter half of the current quarter.

Noninterest income was $46.1 million in the first quarter of 2020, a decrease of $1.6 million compared with $47.7 million in the fourth quarter of 2019 and an increase of $2.4 million compared with $43.7 million in the first quarter of 2019. There were no significant items in noninterest income during the first quarter of 2020. Noninterest income in the fourth quarter of 2019 included a gain of $3.8 million related to the early buyout of a leveraged lease. Noninterest income in the first quarter of 2019 included a $1.4 million commission related to insurance products offered through a third-party administrator. Adjusted for significant items, the increase in noninterest income compared with the fourth quarter of 2019 and the first quarter last year was largely due to significant growth in customer derivative activity.

Noninterest expense was $96.3 million in the first quarter of 2020, an increase of $3.2 million compared with $93.1 million in the fourth quarter of 2019 and an increase of $3.2 million from $93.1 million in the same quarter last year. Noninterest expense in the first quarter of 2020 included seasonal payroll expenses of approximately $3.1 million and severance expenses of $4.7 million that were partially offset by the elimination of corporate incentive accruals. There were no significant items in noninterest expense during the fourth quarter of 2019. Noninterest expense in the first quarter of 2019 included seasonal payroll expenses of approximately $2.7 million. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The efficiency ratio during the first quarter of 2020 was 55.96 percent compared with 54.26 percent in the previous quarter and 55.22 percent in the same quarter last year.

The effective tax rate for the first quarter of 2020 was 17.68 percent compared with 21.15 percent in the previous quarter and 18.85 percent during the same quarter last year. There were no significant items impacting the tax rate during the first quarter of 2020 or the fourth quarter of 2019. The first quarter of 2019 included tax benefits of $1.9 million related to a commercial customer’s exercise of an early-buy-out option on a leveraged lease.

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 Table 13.

Asset Quality

The Company’s asset quality remained stable during the first quarter of 2020. Total non-performing assets were $20.6 million at March 31, 2020, compared with $20.1 million at December 31, 2019 and $17.9 million at March 31, 2019. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.18 percent at the end of the first quarter of 2020, compared with 0.18 percent at the end of the fourth quarter of 2019 and 0.17 percent at the end of the first quarter last year.

Accruing loans and leases past due 90 days or more were $8.5 million at March 31, 2020, compared with $8.4 million at December 31, 2019 and $6.1 million at March 31, 2019. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $61.4 million at March 31, 2019 compared with $63.1 million at December 31, 2019 and $48.6 million at March 31, 2019. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loans and leases charged off during the first quarter of 2020 were $3.7 million or 0.14 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $7.2 million during the quarter were partially offset by recoveries of $3.4 million. Net charge-offs during the fourth quarter of 2019 were $3.7 million or 0.13 percent annualized of total average loans and leases outstanding and were comprised of $6.2 million in charge-offs partially offset by recoveries of $2.6 million. Net charge-offs during the first quarter of 2019 were $3.7 million or 0.14 percent annualized of total average loans and leases outstanding and were comprised of $6.8 million in charge-offs partially offset by recoveries of $3.2 million.

The allowance for credit losses was $138.2 million at March 31, 2020, an increase from $110.0 million at December 31, 2019 and $106.0 million at March 31, 2019. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.22 percent at March 31, 2020 compared with 1.00 percent at December 31, 2019 and 1.01 percent at March 31, 2019. The reserve for unfunded commitments was $3.3 million at March 31, 2020 compared with $6.8 million at December 31, 2019 and at March 31, 2019. Details of loan and lease charge-offs, recoveries, and components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets increased to $18.54 billion at March 31, 2020 compared with $18.10 billion at December 31, 2019 and $17.45 billion at March 31, 2019. Average total assets were $18.22 billion during the first quarter of 2020, an increase from $17.82 billion during the fourth quarter of 2019 and $17.24 billion in the first quarter of 2019.

The investment securities portfolio was $5.69 billion at March 31, 2020 compared with $5.66 billion at December 31, 2019 and $5.53 billion at March 31, 2019. The portfolio at March 31, 2020 remains largely comprised of securities issued by U.S. government agencies and includes $3.00 billion in securities held to maturity and $2.68 billion in securities available for sale.

Total loans and leases were $11.35 billion at March 31, 2020, an increase of 3.3 percent from $10.99 billion at December 31, 2019 and up 7.6 percent from $10.55 billion at March 31, 2019. Average total loans were $11.06 billion during the first quarter of 2020, an increase from $10.88 billion during the fourth quarter of 2019 and $10.47 billion in the first quarter of 2019.

The commercial portfolio grew to $4.53 billion at the end of the first quarter of 2020, an increase of 7.5 percent from $4.21 billion at the end of the fourth quarter of 2019 and up 13.3 percent from $4.00 billion at the end of the first quarter last year. Consumer loans grew to $6.82 billion at March 31, 2020, an increase of 0.7 percent from $6.78 billion at the end of the fourth quarter of 2019 and up 4.2 percent from consumer loans of $6.55 billion at the end of the first quarter last year.

Total deposits were $16.06 billion at March 31, 2020, an increase of 1.7 percent from $15.78 billion at December 31, 2019 and up 5.2 percent from total deposits of $15.27 billion at March 31, 2019. Average total deposits were $15.82 billion during the first quarter of 2020, an increase from $15.44 billion during the fourth quarter of 2019 and $14.97 billion in the first quarter of 2019.

Consumer deposits increased to $8.29 billion at March 31, 2020, an increase of 2.2 percent from $8.12 billion at the end of the fourth quarter of 2019 and up 4.4 percent from $7.94 billion at the end of the first quarter last year. Commercial deposits increased to $6.36 billion at the end of the first quarter of 2020, an increase of 0.5 percent from $6.32 billion at the end of the fourth quarter of 2019 and up 3.2 percent from $6.16 billion at the end of the first quarter last year. Other deposits, including public funds, were $1.40 billion at March 31, 2020, an increase of 4.5 percent from $1.34 billion at December 31, 2019 and up 20.8 percent from $1.16 billion at March 31, 2019. Deposit balances are summarized in Tables 7 and 10.

Total shareholders’ equity was $1.33 billion at March 31, 2020, up from $1.29 billion at December 31, 2019 and up from $1.27 billion at March 31, 2019. The Tier 1 Capital Ratio was 11.85 percent at March 31, 2020 compared with 12.18 percent at December 31, 2019 and 12.75 percent at March 31, 2019. The Tier 1 Leverage Ratio at March 31, 2020 was 7.14 percent compared with 7.25 percent at December 31, 2019 and 7.46 percent at March 31, 2019.

During the first quarter of 2020, the Company repurchased 156.4 thousand shares of common stock at a total cost of $14.0 million under its share repurchase program. The average cost was $89.32 per share repurchased. Due to the uncertainty related to the COVID-19 pandemic, the Company temporarily suspended the share repurchase program on March 17, 2020. From the beginning of the share repurchase program initiated during July 2001 through March 16, 2020, the Company has repurchased 57.1 million shares and returned over $2.3 billion to shareholders at an average cost of $40.51 per share. Remaining buyback authority under the share repurchase program was $113.1 million at March 31, 2020.

The Company’s Board of Directors declared a quarterly cash dividend of $0.67 per share on the Company’s outstanding shares. The dividend will be payable on June 12, 2020 to shareholders of record at the close of business on May 29, 2020.

Conference Call Information

The Company will review its first quarter financial results today at 2:00 p.m. Eastern Daylight Time (8:00 a.m. Hawaii Time). The conference call will be accessible via teleconference and the call and presentation materials will be available via the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. The toll-free number is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, April 20, 2020. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the conference ID 4256888 when prompted. In addition, a replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release including supplemental materials and other statements made by the Company in connection with it may contain "forward-looking statements," such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2019, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.

Bank of Hawaii Corporation is 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 website, www.boh.com.

Bank of Hawaii Corporation and Subsidiaries
Financial Highlights							Table 1
	Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands, except per share amounts)	2020			2019			2019
For the Period:
Operating Results
Net Interest Income	$	125,966		$	123,885		$	124,837
Provision for Credit Losses		33,600			4,750			3,000
Total Noninterest Income		46,149			47,702			43,679
Total Noninterest Expense		96,312			93,096			93,057
Net Income		34,742			58,143			58,799
Basic Earnings Per Share		0.88			1.46			1.44
Diluted Earnings Per Share		0.87			1.45			1.43
Dividends Declared Per Share		0.67			0.67			0.62

Performance Ratios
Return on Average Assets		0.77	%		1.29	%		1.38	%
Return on Average Shareholders' Equity		10.64			17.84			18.81
Efficiency Ratio ¹		55.96			54.26			55.22
Net Interest Margin ²		2.96			2.95			3.12
Dividend Payout Ratio ³		76.14			45.89			43.06
Average Shareholders' Equity to Average Assets		7.21			7.26			7.35

Average Balances
Average Loans and Leases	$	11,060,707		$	10,878,672		$	10,467,321
Average Assets		18,222,602			17,821,004			17,236,059
Average Deposits		15,817,745			15,441,097			14,971,404
Average Shareholders' Equity		1,313,848			1,292,930			1,267,438

Per Share of Common Stock
Book Value	$	33.20		$	32.14		$	30.91
Tangible Book Value		32.41			31.35			30.14
Market Value
Closing		54.91			95.16			78.87
High		95.53			95.68			83.94
Low		46.70			81.29			66.54

	March 31,			December 31,			March 31,
	2020			2019			2019
As of Period End:
Balance Sheet Totals
Loans and Leases	$	11,352,780		$	10,990,892		$	10,548,609
Total Assets		18,542,233			18,095,496			17,446,413
Total Deposits		16,055,361			15,784,482			15,267,310
Other Debt		60,545			85,565			110,624
Total Shareholders' Equity		1,327,929			1,286,832			1,269,690

Asset Quality
Non-Performing Assets	$	20,604		$	20,117		$	17,925
Allowance for Credit Losses		138,150			110,027			106,023
Allowance to Loans and Leases Outstanding		1.22	%		1.00	%		1.01	%

Capital Ratios ⁴
Common Equity Tier 1 Capital Ratio		11.85	%		12.18	%		12.75	%
Tier 1 Capital Ratio		11.85			12.18			12.75
Total Capital Ratio		13.10			13.28			13.87
Tier 1 Leverage Ratio		7.14			7.25			7.46
Total Shareholders' Equity to Total Assets		7.16			7.11			7.28
Tangible Common Equity to Tangible Assets ⁵		7.00			6.95			7.11
Tangible Common Equity to Risk-Weighted Assets⁵		11.85			11.85			12.28

Non-Financial Data
Full-Time Equivalent Employees		2,094			2,124			2,112
Branches		67			68			69
ATMs		382			387			385

Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures							Table 2
	March 31,			December 31,			March 31,
(dollars in thousands)	2020			2019			2019

Total Shareholders' Equity	$	1,327,929		$	1,286,832		$	1,269,690
Less:Goodwill		31,517			31,517			31,517
Tangible Common Equity	$	1,296,412		$	1,255,315		$	1,238,173

Total Assets	$	18,542,233		$	18,095,496		$	17,446,413
Less:Goodwill		31,517			31,517			31,517
Tangible Assets	$	18,510,716		$	18,063,979		$	17,414,896

Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements	$	10,941,909		$	10,589,061		$	10,079,858

Total Shareholders' Equity to Total Assets		7.16	%		7.11	%		7.28	%
Tangible Common Equity to Tangible Assets (Non-GAAP)		7.00	%		6.95	%		7.11	%

Tier 1 Capital Ratio		11.85	%		12.18	%		12.75	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)		11.85	%		11.85	%		12.28	%

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income							Table 3
	Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands, except per share amounts)	2020			2019			2019
Interest Income
Interest and Fees on Loans and Leases	$	108,210		$	109,223		$	108,511
Income on Investment Securities
Available-for-Sale		16,711			16,158			13,432
Held-to-Maturity		19,252			18,750			21,921
Deposits		9			8			15
Funds Sold		546			723			1,444
Other		218			239			319
Total Interest Income		144,946			145,101			145,642
Interest Expense
Deposits		14,260			16,407			15,284
Securities Sold Under Agreements to Repurchase		4,025			4,071			4,571
Funds Purchased		72			25			157
Short-Term Borrowings		39			-			36
Other Debt		584			713			757
Total Interest Expense		18,980			21,216			20,805
Net Interest Income		125,966			123,885			124,837
Provision for Credit Losses		33,600			4,750			3,000
Net Interest Income After Provision for Credit Losses		92,366			119,135			121,837
Noninterest Income
Trust and Asset Management		10,915			11,157			10,761
Mortgage Banking		2,695			3,199			2,287
Service Charges on Deposit Accounts		7,451			7,835			7,364
Fees, Exchange, and Other Service Charges		13,200			14,533			14,208
Investment Securities Gains (Losses), Net		(970	)		(906	)		(835	)
Annuity and Insurance		928			1,272			2,578
Bank-Owned Life Insurance		1,580			1,879			1,710
Other		10,350			8,733			5,606
Total Noninterest Income		46,149			47,702			43,679
Noninterest Expense
Salaries and Benefits		54,463			51,664			56,586
Net Occupancy		8,955			8,824			7,594
Net Equipment		8,456			7,930			6,833
Data Processing		4,788			4,828			4,526
Professional Fees		3,208			3,257			2,453
FDIC Insurance		1,456			1,376			1,269
Other		14,986			15,217			13,796
Total Noninterest Expense		96,312			93,096			93,057
Income Before Provision for Income Taxes		42,203			73,741			72,459
Provision for Income Taxes		7,461			15,598			13,660
Net Income	$	34,742		$	58,143		$	58,799
Basic Earnings Per Share	$	0.88		$	1.46		$	1.44
Diluted Earnings Per Share	$	0.87		$	1.45		$	1.43
Dividends Declared Per Share	$	0.67		$	0.67		$	0.62
Basic Weighted Average Shares		39,681,611			39,880,619			40,938,318
Diluted Weighted Average Shares		39,916,986			40,179,016			41,213,453

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income						Table 4
	Three Months Ended
	March 31,		December 31,			March 31,
(dollars in thousands)	2020		2019			2019
Net Income	$	34,742	$	58,143		$	58,799
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities		41,559		(5,856	)		6,919
Defined Benefit Plans		374		(3,482	)		246
Other Comprehensive Income (Loss)		41,933		(9,338	)		7,165
Comprehensive Income	$	76,675	$	48,805		$	65,964

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition							Table 5
	March 31,			December 31,			March 31,
(dollars in thousands)	2020			2019			2019
Assets
Interest-Bearing Deposits in Other Banks	$	6,346		$	4,979		$	3,550
Funds Sold		96,898			254,574			243,867
Investment Securities
Available-for-Sale		2,681,049			2,619,003			1,859,256
Held-to-Maturity (Fair Value of $3,104,020; $3,062,882; and $3,637,496)		3,004,139			3,042,294			3,668,811
Loans Held for Sale		20,789			39,062			17,909
Loans and Leases		11,352,780			10,990,892			10,548,609
Allowance for Credit Losses		(138,150	)		(110,027	)		(106,023	)
Net Loans and Leases		11,214,630			10,880,865			10,442,586
Total Earning Assets		17,023,851			16,840,777			16,235,979
Cash and Due from Banks		453,465			299,105			293,871
Premises and Equipment, Net		196,228			188,388			159,344
Operating Lease Right-of-Use Assets		98,695			100,838			104,166
Accrued Interest Receivable		46,996			46,476			52,820
Foreclosed Real Estate		2,506			2,737			3,225
Mortgage Servicing Rights		22,537			25,022			24,149
Goodwill		31,517			31,517			31,517
Bank-Owned Life Insurance		289,536			287,962			285,155
Other Assets		376,902			272,674			256,187
Total Assets	$	18,542,233		$	18,095,496		$	17,446,413

Liabilities
Deposits
Noninterest-Bearing Demand	$	4,378,918		$	4,489,525		$	4,595,915
Interest-Bearing Demand		3,261,101			3,127,205			2,961,444
Savings		6,670,530			6,365,321			5,946,881
Time		1,744,812			1,802,431			1,763,070
Total Deposits		16,055,361			15,784,482			15,267,310
Funds Purchased		75,000			-			-
Short-Term Borrowings		75,000			-			-
Securities Sold Under Agreements to Repurchase		603,206			604,306			504,299
Other Debt		60,545			85,565			110,624
Operating Lease Liabilities		106,180			108,210			111,230
Retirement Benefits Payable		44,124			44,504			40,343
Accrued Interest Payable		7,932			8,040			8,474
Taxes Payable and Deferred Taxes		32,793			16,085			29,935
Other Liabilities		154,163			157,472			104,508
Total Liabilities		17,214,304			16,808,664			16,176,723
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: March 31, 2020 - 58,251,725 / 39,996,510;
December 31, 2019 - 58,166,910 / 40,039,695;
and March 31, 2019 - 58,166,535 / 41,078,688)		579			579			578
Capital Surplus		584,392			582,566			574,594
Accumulated Other Comprehensive Loss		10,821			(31,112	)		(43,878	)
Retained Earnings		1,773,607			1,761,415			1,674,264
Treasury Stock, at Cost (Shares: March 31, 2020 - 18,255,215;
December 31, 2019 - 18,127,215; and March 31, 2019 - 17,087,847)		(1,041,470	)		(1,026,616	)		(935,868	)
Total Shareholders' Equity		1,327,929			1,286,832			1,269,690
Total Liabilities and Shareholders' Equity	$	18,542,233		$	18,095,496		$	17,446,413

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																Table 6
							Accum.
							Other
							Compre-
							hensive
	Common Shares		Common		Capital		Income			Retained			Treasury
(dollars in thousands)	Outstanding		Stock		Surplus		(Loss)			Earnings			Stock			Total
Balance as of December 31, 2019	40,039,695		$	579	$	582,566	$	(31,112	)	$	1,761,415		$	(1,026,616	)	$	1,286,832
Net Income	-			-		-		-			34,742			-			34,742
Other Comprehensive Income	-			-		-		41,933			-			-			41,933
Cumulative Change in Accounting Principle	-			-		-		-			3,632			-			3,632
Share-Based Compensation	-			-		1,497		-			-			-			1,497
Common Stock Issued under Purchase and Equity
Compensation Plans	154,091			-		329		-			653			2,779			3,761
Common Stock Repurchased	(197,276	)		-		-		-			-			(17,633	)		(17,633	)
Cash Dividends Declared ($0.67 per share)	-			-		-		-			(26,835	)		-			(26,835	)
Balance as of March 31, 2020	39,996,510		$	579	$	584,392	$	10,821		$	1,773,607		$	(1,041,470	)	$	1,327,929

Balance as of December 31, 2018	41,499,898		$	577	$	571,704	$	(51,043	)	$	1,641,314		$	(894,352	)	$	1,268,200
Net Income	-			-		-		-			58,799			-			58,799
Other Comprehensive Income	-			-		-		7,165			-			-			7,165
Share-Based Compensation	-			-		2,274		-			-			-			2,274
Common Stock Issued under Purchase and Equity
Compensation Plans	131,529			1		616		-			(203	)		1,673			2,087
Common Stock Repurchased	(552,739	)		-		-		-			-			(43,189	)		(43,189	)
Cash Dividends Declared ($0.62 per share)	-			-		-		-			(25,646	)		-			(25,646	)
Balance as of March 31, 2019	41,078,688		$	578	$	574,594	$	(43,878	)	$	1,674,264		$	(935,868	)	$	1,269,690

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																	Table 7
	Three Months Ended						Three Months Ended						Three Months Ended
	March 31, 2020						December 31, 2019						March 31, 2019
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	1.4	$	-	2.36	%	$	3.4	$	-	0.90	%	$	3.0	$	-	2.05	%
Funds Sold		152.8		0.6	1.41			177.7		0.7	1.59			241.6		1.5	2.39
Investment Securities
Available-for-Sale
Taxable		2,702.4		16.4	2.43			2,578.3		15.9	2.46			1,595.8		11.5	2.90
Non-Taxable		32.4		0.4	4.40			33.4		0.4	4.35			279.1		2.4	3.45
Held-to-Maturity
Taxable		3,036.2		18.9	2.50			2,994.7		18.4	2.46			3,373.5		20.5	2.43
Non-Taxable		54.7		0.4	2.67			61.7		0.4	2.70			234.1		1.8	3.15
Total Investment Securities		5,825.7		36.1	2.48			5,668.1		35.1	2.47			5,482.5		36.2	2.65
Loans Held for Sale		23.2		0.2	3.54			31.0		0.3	3.67			12.4		0.1	4.35
Loans and Leases ¹
Commercial and Industrial		1,409.3		13.2	3.77			1,356.1		13.3	3.90			1,357.8		15.3	4.57
Commercial Mortgage		2,549.4		25.1	3.96			2,479.7		25.5	4.08			2,310.4		24.9	4.36
Construction		213.2		2.5	4.65			179.1		2.1	4.73			150.4		1.9	5.08
Commercial Lease Financing		111.4		0.5	1.95			135.4		0.8	2.38			160.9		0.9	2.28
Residential Mortgage		3,895.4		36.9	3.79			3,850.4		36.7	3.81			3,680.2		35.5	3.86
Home Equity		1,680.2		15.2	3.64			1,683.4		15.7	3.70			1,690.0		16.1	3.87
Automobile		721.0		6.4	3.56			715.2		6.5	3.59			668.2		6.0	3.66
Other ²		480.8		8.4	7.06			479.4		8.5	7.02			449.4		7.9	7.13
Total Loans and Leases		11,060.7		108.2	3.93			10,878.7		109.1	3.99			10,467.3		108.5	4.18
Other		34.3		0.2	2.54			34.9		0.2	2.74			35.5		0.3	3.60
Total Earning Assets ³		17,098.1		145.3	3.41			16,793.8		145.4	3.45			16,242.3		146.6	3.64
Cash and Due from Banks		278.8						222.2						240.8
Other Assets		845.7						805.0						753.0
Total Assets	$	18,222.6					$	17,821.0					$	17,236.1

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	3,110.0		1.0	0.12		$	2,990.3		1.0	0.14		$	2,939.9		1.5	0.20
Savings		6,502.4		7.1	0.44			6,245.0		8.0	0.51			5,760.8		6.7	0.47
Time		1,743.0		6.2	1.43			1,842.3		7.4	1.59			1,703.4		7.1	1.69
Total Interest-Bearing Deposits		11,355.4		14.3	0.51			11,077.6		16.4	0.59			10,404.1		15.3	0.60
Short-Term Borrowings		57.8		0.1	0.76			5.8		-	1.66			31.1		0.2	2.49
Securities Sold Under Agreements to Repurchase		604.1		4.0	2.64			604.3		4.1	2.64			504.3		4.6	3.63
Other Debt		66.9		0.6	3.51			106.2		0.7	2.67			120.0		0.7	2.55
Total Interest-Bearing Liabilities		12,084.2		19.0	0.63			11,793.9		21.2	0.71			11,059.5		20.8	0.76
Net Interest Income			$	126.3					$	124.2					$	125.8
Interest Rate Spread					2.78	%					2.74	%					2.88	%
Net Interest Margin					2.96	%					2.95	%					3.12	%
Noninterest-Bearing Demand Deposits		4,462.3						4,363.5						4,567.3
Other Liabilities		362.3						370.7						341.9
Shareholders' Equity		1,313.8						1,292.9						1,267.4
Total Liabilities and Shareholders' Equity	$	18,222.6					$	17,821.0					$	17,236.1

¹Non-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 $357,000, $352,000, and $981,000 for the three months ended March 31, 2020, December 31, 2019, and March 31, 2019, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended March 31, 2020
	Compared to December 31, 2019
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(0.1	)	$	-		$	(0.1	)
Investment Securities
Available-for-Sale
Taxable		0.7			(0.2	)		0.5
Held-to-Maturity
Taxable		0.2			0.3			0.5
Total Investment Securities		0.9			0.1			1.0
Loans Held for Sale		(0.1	)		-			(0.1	)
Loans and Leases
Commercial and Industrial		0.4			(0.5	)		(0.1	)
Commercial Mortgage		0.5			(0.9	)		(0.4	)
Construction		0.4			-			0.4
Commercial Lease Financing		(0.1	)		(0.2	)		(0.3	)
Residential Mortgage		0.5			(0.3	)		0.2
Home Equity		(0.1	)		(0.4	)		(0.5	)
Automobile		-			(0.1	)		(0.1	)
Other ²		-			(0.1	)		(0.1	)
Total Loans and Leases		1.6			(2.5	)		(0.9	)
Total Change in Interest Income		2.3			(2.4	)		(0.1	)

Change in Interest Expense:
Interest-Bearing Deposits
Demand		0.1			(0.1	)		-
Savings		0.3			(1.2	)		(0.9	)
Time		(0.4	)		(0.8	)		(1.2	)
Total Interest-Bearing Deposits		-			(2.1	)		(2.1	)
Short-Term Borrowings		0.1			-			0.1
Securities Sold Under Agreements to Repurchase		(0.1	)		-			(0.1	)
Other Debt		(0.3	)		0.2			(0.1	)
Total Change in Interest Expense		(0.3	)		(1.9	)		(2.2	)

Change in Net Interest Income	$	2.6		$	(0.5	)	$	2.1

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

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8b
	Three Months Ended March 31, 2020
	Compared to March 31, 2019
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(0.4	)	$	(0.5	)	$	(0.9	)
Investment Securities
Available-for-Sale
Taxable		7.0			(2.1	)		4.9
Non-Taxable		(2.5	)		0.5			(2.0	)
Held-to-Maturity
Taxable		(2.2	)		0.6			(1.6	)
Non-Taxable		(1.2	)		(0.2	)		(1.4	)
Total Investment Securities		1.1			(1.2	)		(0.1	)
Loans Held for Sale		0.1			-			0.1
Loans and Leases
Commercial and Industrial		0.6			(2.7	)		(2.1	)
Commercial Mortgage		2.5			(2.3	)		0.2
Construction		0.8			(0.2	)		0.6
Commercial Lease Financing		(0.3	)		(0.1	)		(0.4	)
Residential Mortgage		2.1			(0.7	)		1.4
Home Equity		(0.1	)		(0.8	)		(0.9	)
Automobile		0.5			(0.1	)		0.4
Other ²		0.6			(0.1	)		0.5
Total Loans and Leases		6.7			(7.0	)		(0.3	)
Other		-			(0.1	)		(0.1	)
Total Change in Interest Income		7.5			(8.8	)		(1.3	)

Change in Interest Expense:
Interest-Bearing Deposits
Demand		0.1			(0.6	)		(0.5	)
Savings		0.9			(0.5	)		0.4
Time		0.2			(1.1	)		(0.9	)
Total Interest-Bearing Deposits		1.2			(2.2	)		(1.0	)
Short-Term Borrowings		0.1			(0.2	)		(0.1	)
Securities Sold Under Agreements to Repurchase		0.8			(1.4	)		(0.6	)
Other Debt		(0.4	)		0.3			(0.1	)
Total Change in Interest Expense		1.7			(3.5	)		(1.8	)

Change in Net Interest Income	$	5.8		$	(5.3	)	$	0.5

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

Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits					Table 9
	Three Months Ended
	March 31,		December 31,		March 31,
(dollars in thousands)	2020		2020		2019
Salaries	$	33,486	$	33,465	$	32,480
Incentive Compensation		245		4,864		5,904
Share-Based Compensation		1,291		1,475		3,079
Commission Expense		1,374		2,080		930
Retirement and Other Benefits		4,706		4,279		5,107
Payroll Taxes		4,543		2,386		4,247
Medical, Dental, and Life Insurance		4,142		2,903		4,465
Separation Expense		4,676		212		374
Total Salaries and Benefits	$	54,463	$	51,664	$	56,586

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances									Table 10
	March 31,		December 31,		September 30,		June 30,		March 31,
(dollars in thousands)	2020		2019		2019		2019		2019
Commercial
Commercial and Industrial	$	1,558,232	$	1,379,152	$	1,361,011	$	1,408,729	$	1,331,345
Commercial Mortgage		2,616,243		2,518,051		2,477,296		2,411,289		2,381,213
Construction		245,390		194,170		154,754		119,228		132,775
Lease Financing		110,704		122,454		163,672		163,070		154,919
Total Commercial		4,530,569		4,213,827		4,156,733		4,102,316		4,000,252
Consumer
Residential Mortgage		3,928,183		3,891,100		3,846,511		3,785,006		3,702,553
Home Equity		1,692,154		1,676,073		1,681,951		1,694,577		1,698,666
Automobile		716,214		720,286		713,424		703,523		676,730
Other ¹		485,660		489,606		482,679		473,707		470,408
Total Consumer		6,822,211		6,777,065		6,724,565		6,656,813		6,548,357
Total Loans and Leases	$	11,352,780	$	10,990,892	$	10,881,298	$	10,759,129	$	10,548,609

Deposits
	March 31,		December 31,		September 30,		June 30,		March 31,
(dollars in thousands)	2020		2019		2019		2019		2019
Consumer	$	8,294,464	$	8,118,494	$	7,893,454	$	7,880,284	$	7,944,793
Commercial		6,358,583		6,324,214		6,153,492		6,178,984		6,162,042
Public and Other		1,402,314		1,341,774		1,293,806		1,429,553		1,160,475
Total Deposits	$	16,055,361	$	15,784,482	$	15,340,752	$	15,488,821	$	15,267,310

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

Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More													Table 11
	March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands)	2020			2019			2019			2019			2019
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial	$	634		$	830		$	573		$	552		$	393
Commercial Mortgage		9,048			9,244			11,088			11,310			5,911
Total Commercial		9,682			10,074			11,661			11,862			6,304
Consumer
Residential Mortgage		4,330			4,125			4,258			4,697			5,599
Home Equity		4,086			3,181			2,787			2,486			2,797
Total Consumer		8,416			7,306			7,045			7,183			8,396
Total Non-Accrual Loans and Leases		18,098			17,380			18,706			19,045			14,700
Foreclosed Real Estate		2,506			2,737			2,939			2,737			3,225
Total Non-Performing Assets	$	20,604		$	20,117		$	21,645		$	21,782		$	17,925

Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial	$	-		$	-		$	81		$	-		$	66
Total Commercial		-			-			81			-			66
Consumer
Residential Mortgage		3,024			1,839			2,032			1,859			903
Home Equity		3,426			4,125			2,320			2,981			3,381
Automobile		866			949			582			607			734
Other¹		1,205			1,493			1,076			963			1,033
Total Consumer		8,521			8,406			6,010			6,410			6,051
Total Accruing Loans and Leases Past Due 90 Days or More	$	8,521		$	8,406		$	6,091		$	6,410		$	6,117
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More	$	61,425		$	63,103		$	46,178		$	48,563		$	48,571
Total Loans and Leases	$	11,352,780		$	10,990,892		$	10,881,298		$	10,759,129		$	10,548,609

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases		0.16	%		0.16	%		0.17	%		0.18	%		0.14	%

Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate		0.18	%		0.18	%		0.20	%		0.20	%		0.17	%

Ratio of Commercial Non-Performing Assets to Total Commercial Loans and
Leases and Commercial Foreclosed Real Estate		0.21	%		0.24	%		0.28	%		0.29	%		0.16	%

Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate		0.16	%		0.15	%		0.15	%		0.15	%		0.18	%

Ratio of Non-Performing Assets and Accruing Loans and Leases
Past Due 90 Days or More to Total Loans and Leases
and Foreclosed Real Estate		0.26	%		0.26	%		0.25	%		0.26	%		0.23	%

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter		20,117		$	21,645		$	21,782		$	17,925		$	12,930
Additions		1,754			883			1,035			6,186			8,217
Reductions
Payments		(315	)		(495	)		(984	)		(441	)		(989	)
Return to Accrual Status		(437	)		(1,673	)		-			(1,344	)		(316	)
Sales of Foreclosed Real Estate		(231	)		(201	)		-			(374	)		-
Charge-offs/Write-downs		(284	)		(42	)		(188	)		(170	)		(1,917	)
Total Reductions		(1,267	)		(2,411	)		(1,172	)		(2,329	)		(3,222	)
Balance at End of Quarter	$	20,604		$	20,117		$	21,645		$	21,782		$	17,925

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

Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses							Table 12
	Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands)	2020			2019			2019
Balance at Beginning of Period	$	116,849		$	115,758		$	113,515
CECL Adoption (Day 1) Impact		(5,072	)		-			-
Loans and Leases Charged-Off
Commercial
Commercial and Industrial		(693	)		(307	)		(370	)
Commercial Mortgage		-			-			(1,616	)
Consumer
Residential Mortgage		(20	)		(50	)		(4	)
Home Equity		-			(245	)		(295	)
Automobile		(2,500	)		(1,990	)		(1,753	)
Other ¹		(3,964	)		(3,651	)		(2,790	)
Total Loans and Leases Charged-Off		(7,177	)		(6,243	)		(6,828	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial		289			293			501
Commercial Mortgage		40			-			-
Consumer
Residential Mortgage		263			699			484
Home Equity		976			577			588
Automobile		1,005			512			881
Other ¹		864			503			704
Total Recoveries on Loans and Leases Previously Charged-Off		3,437			2,584			3,158
Net Loans and Leases Charged-Off		(3,740	)		(3,659	)		(3,670	)
Provision for Credit Losses		33,600			4,750			3,000
Provision for Unfunded Commitments		(170	)		-			-
Balance at End of Period ²	$	141,467		$	116,849		$	112,845

Components
Allowance for Credit Losses	$	138,150		$	110,027		$	106,023
Reserve for Unfunded Commitments		3,317			6,822			6,822
Total Reserve for Credit Losses	$	141,467		$	116,849		$	112,845

Average Loans and Leases Outstanding	$	11,060,707		$	10,878,672		$	10,467,321

Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)		0.14	%		0.13	%		0.14	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding		1.22	%		1.00	%		1.01	%

¹ 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.

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information										Table 13

	Consumer			Commercial			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			and Other			Total
Three Months Ended March 31, 2020
Net Interest Income	$	73,661		$	45,986		$	6,319		$	125,966
Provision for Credit Losses		3,545			290			29,765			33,600
Net Interest Income After Provision for Credit Losses		70,116			45,696			(23,446	)		92,366
Noninterest Income		32,590			11,735			1,824			46,149
Noninterest Expense		(70,900	)		(17,298	)		(8,114	)		(96,312	)
Income Before Provision for Income Taxes		31,806			40,133			(29,736	)		42,203
Provision for Income Taxes		(7,984	)		(9,760	)		10,283			(7,461	)
Net Income	$	23,822		$	30,373		$	(19,453	)	$	34,742
Total Assets as of March 31, 2020	$	7,385,185		$	4,584,040		$	6,573,008		$	18,542,233

Three Months Ended March 31, 2019¹
Net Interest Income	$	76,352		$	47,290		$	1,195		$	124,837
Provision for Credit Losses		2,224			1,446			(670	)		3,000
Net Interest Income After Provision for Credit Losses		74,128			45,844			1,865			121,837
Noninterest Income		34,478			7,061			2,140			43,679
Noninterest Expense		(69,427	)		(20,955	)		(2,675	)		(93,057	)
Income Before Provision for Income Taxes		39,179			31,950			1,330			72,459
Provision for Income Taxes		(9,834	)		(6,002	)		2,176			(13,660	)
Net Income	$	29,345		$	25,948		$	3,506		$	58,799
Total Assets as of March 31, 2019 ¹	$	6,796,106		$	4,004,176		$	6,646,131		$	17,446,413

¹Certain prior period information has been reclassified to conform to current presentation.

Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data																	Table 14
	Three Months Ended
	March 31,				December 31,				September 30,				June 30,				March 31,
(dollars in thousands, except per share amounts)	2020				2019				2019				2019				2019
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	108,210			$	109,223			$	110,877			$	110,401			$	108,511
Income on Investment Securities
Available-for-Sale		16,711				16,158				17,512				15,072				13,432
Held-to-Maturity		19,252				18,750				18,796				22,149				21,921
Deposits		9				8				9				9				15
Funds Sold		546				723				656				730				1,444
Other		218				239				233				210				319
Total Interest Income		144,946				145,101				148,083				148,571				145,642
Interest Expense
Deposits		14,260				16,407				18,055				18,628				15,284
Securities Sold Under Agreements to Repurchase		4,025				4,071				4,257				4,623				4,571
Funds Purchased		72				25				146				512				157
Short-Term Borrowings		39				-				1				1				36
Other Debt		584				713				728				710				757
Total Interest Expense		18,980				21,216				23,187				24,474				20,805
Net Interest Income		125,966				123,885				124,896				124,097				124,837
Provision for Credit Losses		33,600				4,750				4,250				4,000				3,000
Net Interest Income After Provision for Credit Losses		92,366				119,135				120,646				120,097				121,837
Noninterest Income
Trust and Asset Management		10,915				11,157				10,930				11,385				10,761
Mortgage Banking		2,695				3,199				4,864				3,336				2,287
Service Charges on Deposit Accounts		7,451				7,835				7,592				7,283				7,364
Fees, Exchange, and Other Service Charges		13,200				14,533				14,900				14,252				14,208
Investment Securities Gains (Losses), Net		(970	)			(906	)			(1,469	)			(776	)			(835	)
Annuity and Insurance		928				1,272				1,278				1,806				2,578
Bank-Owned Life Insurance		1,580				1,879				1,647				1,779				1,710
Other		10,350				8,733				6,765				6,385				5,606
Total Noninterest Income		46,149				47,702				46,507				45,450				43,679
Noninterest Expense
Salaries and Benefits		54,463				51,664				54,345				53,511				56,586
Net Occupancy		8,955				8,824				8,803				8,579				7,594
Net Equipment		8,456				7,930				7,637				6,895				6,833
Data Processing		4,788				4,828				4,676				4,727				4,526
Professional Fees		3,208				3,257				2,184				2,177				2,453
FDIC Insurance		1,456				1,376				1,257				1,290				1,269
Other		14,986				15,217				21,447				15,546				13,796
Total Noninterest Expense		96,312				93,096				100,349				92,725				93,057
Income Before Provision for Income Taxes		42,203				73,741				66,804				72,822				72,459
Provision for Income Taxes		7,461				15,598				14,752				15,903				13,660
Net Income	$	34,742			$	58,143			$	52,052			$	56,919			$	58,799

Basic Earnings Per Share	$	0.88			$	1.46			$	1.30			$	1.40			$	1.44
Diluted Earnings Per Share	$	0.87			$	1.45			$	1.29			$	1.40			$	1.43

Balance Sheet Totals
Loans and Leases	$	11,352,780			$	10,990,892			$	10,881,298			$	10,759,129			$	10,548,609
Total Assets		18,542,233				18,095,496				17,672,140				17,688,845				17,446,413
Total Deposits		16,055,361				15,784,482				15,340,752				15,488,821				15,267,310
Total Shareholders' Equity		1,327,929				1,286,832				1,291,490				1,285,948				1,269,690

Performance Ratios
Return on Average Assets		0.77		%		1.29		%		1.17		%		1.31		%		1.38		%
Return on Average Shareholders' Equity		10.64				17.84				16.02				17.97				18.81
Efficiency Ratio ¹		55.96				54.26				58.55				54.69				55.22
Net Interest Margin ²		2.96				2.95				3.01				3.04				3.12

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

Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends																Table 15
	Two Months Ended				Year Ended
($ in millions; jobs in thousands)	February 29, 2020				December 31, 2019						December 31, 2018
Hawaii Economic Trends
State General Fund Revenues¹	$	1,362.3	15.2	%	$	7,316.5		5.5		%	$	6,933.1			6.9	%
General Excise and Use Tax Revenue¹	$	677.8	5.8	%	$	3,602.2		5.1		%	$	3,426.5			2.3	%
Jobs ²		651.2				648.9						649.9

								January 31,			December 31,
(spot rates)								2020			2019				2018
Unemployment³
Statewide, seasonally adjusted								2.7		%		2.7		%	2.6	%

Oahu								2.7				2.1			2.2
Island of Hawaii								3.5				2.8			2.9
Maui								2.8				2.2			2.2
Kauai								3.0				2.4			2.3

					March 31,			December 31,
(percentage change, except months of inventory)					2020			2019			2018				2017
Housing Trends (Single Family Oahu) ⁴
Median Home Price						-	%	(0.1	)	%		4.6		%	2.7	%
Home Sales Volume (units)						11.6	%	3.9		%		(7.7	)	%	6.3	%
Months of Inventory						2.6		2.5				2.8			2.1

					Monthly Visitor Arrivals,						Percentage Change
(in thousands)					Not Seasonally Adjusted						from Previous Year
Tourism ⁵
February 29, 2020								828.1							5.8
January 31, 2020								862.6							5.1
December 31, 2019								954.3							6.0
November 30, 2019								811.4							4.2
October 31, 2019								800.4							4.8
September 30, 2019								741.3							3.5
August 31, 2019								928.2							9.8
July 31, 2019								997.9							6.2
June 30, 2019								951.6							6.1
May 31, 2019								841.4							4.6
April 30, 2019								856.3							6.6
March 31, 2019								939.1							3.9
February 28, 2019								782.7							0.5
January 31, 2019								820.6							3.0
December 31, 2018								900.2							2.3
November 30, 2018								778.5							3.9
October 31, 2018								763.7							3.5
September 30, 2018								716.1							2.2
August 31, 2018								845.1							3.2
July 31, 2018								939.4							5.3
June 30, 2018								897.1							7.3
May 31, 2018								804.1							7.0
April 30, 2018								803.0							6.6
March 31, 2018								903.6							12.5
February 28, 2018								778.6							10.3
January 31, 2018								796.5							5.4

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20200420005179/en/

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

Investor/Analyst Inquiries
Cindy Wyrick
Telephone: 808-694-8430
E-mail: Cindy.Wyrick@boh.com

Source: Bank of Hawaii Corporation

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

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

³ Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.

⁴The Company has elected to apply the modified transition provision related to the impact of the CECL accounting standard on regulatory capital, as provided by the US banking agencies’ March 2020 interim final rule.

⁵Tangible 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."