Financial Release

• Diluted Earnings Per Common Share $1.68
• Net Income $67.5 Million
• Board of Directors Declares Dividend of $0.70 Per Share

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 Subsidiaries
Financial Highlights																		Table 1
		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
(dollars in thousands, except per share amounts)		2021				2021				2020				2021				2020
For the Period:
Operating Results
Net Interest Income		$	123,514			$	120,569			$	126,691			$	244,083			$	252,657
Provision for Credit Losses			(16,100	)			(14,300	)			40,400				(30,400	)			74,000
Total Noninterest Income			44,431				42,970				51,268				87,401				97,417
Total Noninterest Expense			96,527				98,865				88,892				195,392				185,204
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
Performance Ratios
Return on Average Assets			1.23	%			1.15	%			0.82	%			1.19	%			0.79	%
Return on Average Shareholders' Equity			19.17				17.65				11.58				18.43				11.11
Return on Average Common Equity			19.60				17.65				11.58				18.63				11.11
Efficiency Ratio 1			57.47				60.45				49.95				58.94				52.90
Net Interest Margin 2			2.37				2.43				2.83				2.40				2.90
Dividend Payout Ratio 3			39.64				44.37				68.37				41.88				72.04
Average Shareholders' Equity to Average Assets			6.40				6.51				7.04				6.45				7.12
Average Balances
Average Loans and Leases		$	12,096,308			$	11,952,587			$	11,727,649			$	12,024,844			$	11,394,178
Average Assets			22,073,569				21,150,670				19,189,581				21,614,669				18,706,092
Average Deposits			19,698,285				18,665,222				16,679,511				19,184,607				16,248,628
Average Shareholders' Equity			1,412,924				1,377,272				1,351,345				1,395,197				1,332,596
Per Share of Common Stock
Book Value		$	34.80			$	33.67			$	33.76			$	34.80			$	33.76
Tangible Book Value			34.02				32.89				32.97				34.02				32.97
Market Value
Closing			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 Period End:
Balance Sheet Totals
Loans and Leases						$	12,041,378			$	12,140,703			$	11,940,020			$	11,805,370
Total 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 Shareholders' Equity							1,583,531				1,360,221				1,374,507				1,352,082
Asset Quality
Non-Performing Assets						$	18,974			$	17,883			$	18,481			$	22,701
Allowance for Credit Losses - Loans and Leases							180,385				198,343				216,252				173,439
Allowance to Loans and Leases Outstanding 4							1.50	%			1.63	%			1.81	%			1.47	%
Capital Ratios 5
Common Equity Tier 1 Capital Ratio							12.36	%			12.35	%			12.06	%			12.04	%
Tier 1 Capital Ratio							13.87				12.35				12.06				12.04
Total Capital Ratio							15.13				13.61				13.31				13.29
Tier 1 Leverage Ratio							7.31				6.61				6.71				6.90
Total Shareholders' Equity to Total Assets							6.98				6.20				6.67				6.84
Tangible Common Equity to Tangible Assets 6							6.08				6.06				6.53				6.69
Tangible Common Equity to Risk-Weighted Assets 6							11.85				11.78				11.89				12.07
Non-Financial Data
Full-Time Equivalent Employees							2,085				2,058				2,022				2,112
Branches							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."

Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures														Table 2
		June 30,				March 31,				December 31,				June 30,
(dollars in thousands)		2021				2021				2020				2020
Total Shareholders' Equity		$	1,583,531			$	1,360,221			$	1,374,507			$	1,352,082
Less:Preferred Stock			175,487				-				-				-
Goodwill			31,517				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:Goodwill			31,517				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 Assets			6.98	%			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 Ratio			13.87	%			12.35	%			12.06	%			12.04	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)			11.85	%			11.78	%			11.89	%			12.07	%

Note: Risk-Weighted Assets and Regulatory capital ratios as of June 30, 2021 are preliminary.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income																	Table 3
		Three Months Ended											Six Months Ended
		June 30,				March 31,				June 30,			June 30,
(dollars in thousands, except per share amounts)		2021				2021				2020			2021				2020
Interest Income
Interest and Fees on Loans and Leases		$	100,894			$	99,299			$	107,628		$	200,193			$	215,838
Income on Investment Securities
Available-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 Income			131,379				128,765				139,145			260,144				284,091
Interest Expense
Deposits			4,152				4,329				7,954			8,481				22,214
Securities Sold Under Agreements to Repurchase			3,470				3,533				4,020			7,003				8,045
Funds Purchased			-				1				18			1				90
Short-Term Borrowings			-				-				22			-				61
Other Debt			243				333				440			576				1,024
Total Interest Expense			7,865				8,196				12,454			16,061				31,434
Net Interest Income			123,514				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 Losses			139,614				134,869				86,291			274,483				178,657
Noninterest Income
Trust and Asset Management			11,682				11,278				10,550			22,960				21,465
Mortgage Banking			3,058				5,862				4,278			8,920				6,973
Service Charges on Deposit Accounts			6,065				6,128				5,097			12,193				12,548
Fees, Exchange, and Other Service Charges			13,807				13,607				9,417			27,414				22,617
Investment Securities Gains (Losses), Net			2,423				(1,203	)			13,216			1,220				12,246
Annuity and Insurance			911				702				883			1,613				1,811
Bank-Owned Life Insurance			2,063				1,917				1,649			3,980				3,229
Other			4,422				4,679				6,178			9,101				16,528
Total Noninterest Income			44,431				42,970				51,268			87,401				97,417
Noninterest Expense
Salaries and Benefits			56,161				56,251				50,715			112,412				105,178
Net 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 Expense			96,527				98,865				88,892			195,392				185,204
Income Before Provision for Income Taxes			87,518				78,974				48,667			166,492				90,870
Provision for Income Taxes			19,985				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 Shares			39,902,583				39,827,590				39,703,735			39,865,268				39,692,695
Diluted Weighted Average Common Shares			40,122,905				40,071,477				39,832,475			40,096,527				39,873,334

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income																	Table 4
		Three Months Ended											Six Months Ended
		June 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 Plans			442				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 Subsidiaries
Consolidated Statements of Condition														Table 5
		June 30,				March 31,				December 31,				June 30,
(dollars in thousands)		2021				2021				2020				2020
Assets
Interest-Bearing Deposits in Other Banks		$	2,584			$	4,506			$	1,646			$	2,310
Funds Sold			909,730				1,101,631				333,022				800,857
Investment Securities
Available-for-Sale			4,522,941				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 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 Credit Losses			(180,385	)			(198,343	)			(216,252	)			(173,439	)
Net Loans and Leases			11,860,993				11,942,360				11,723,768				11,631,931
Total Earning Assets			21,291,351				20,555,940				19,195,417				18,459,116
Cash and Due from Banks			269,153				286,717				279,420				242,423
Premises and Equipment, Net			198,508				198,107				199,695				198,582
Operating Lease Right-of-Use Assets			97,264				97,750				99,542				97,166
Accrued Interest Receivable			47,046				47,917				49,303				50,645
Foreclosed Real Estate			2,332				2,332				2,332				2,506
Mortgage Servicing Rights			21,473				22,320				19,652				22,904
Goodwill			31,517				31,517				31,517				31,517
Bank-Owned Life Insurance			292,805				291,764				291,480				291,185
Other Assets			420,734				412,907				435,293				373,898
Total Assets		$	22,672,183			$	21,947,271			$	20,603,651			$	19,769,942
Liabilities
Deposits
Noninterest-Bearing Demand		$	6,570,232			$	6,227,436			$	5,749,612			$	5,485,015
Interest-Bearing Demand			4,498,825				4,379,243				4,040,733				3,437,654
Savings			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 Borrowings			-				-				-				-
Securities Sold Under Agreements to Repurchase			550,490				600,490				600,590				603,206
Other Debt			10,437				60,459				60,481				60,524
Operating Lease Liabilities			105,380				105,820				107,412				104,741
Retirement Benefits Payable			50,260				50,687				51,197				43,833
Accrued Interest Payable			3,879				4,109				5,117				7,775
Taxes Payable and Deferred Taxes			11,844				15,599				2,463				38,297
Other Liabilities			186,653				193,235				190,263				136,329
Total Liabilities			21,088,652				20,587,050				19,229,144				18,417,860
Shareholders' Equity
Preferred 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 Surplus			594,261				594,804				591,360				586,946
Accumulated Other Comprehensive Income (Loss)			(41,468	)			(41,787	)			7,822				18,925
Retained Earnings			1,884,431				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' Equity			1,583,531				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 Subsidiaries
Consolidated Statements of Shareholders' Equity																													Table 6
																	Accum.
																	Other
																	Compre-
		Preferred					Common										hensive
		Shares		Preferred			Shares			Common			Capital				Income				Retained				Treasury
(dollars in thousands)		Outstanding		Stock			Outstanding			Stock			Surplus				(Loss)				Earnings				Stock				Total
Balance as of December 31, 2020		-		$	-		40,119,312			$	580		$	591,360			$	7,822			$	1,811,979			$	(1,037,234	)		$	1,374,507
Net Income		-			-		-				-			-				-				127,482				-				127,482
Other Comprehensive Loss		-			-		-				-			-				(49,290	)			-				-				(49,290	)
Share-Based Compensation		-			-		-				-			6,122				-				-				-				6,122
Preferred Stock Issued, Net		180,000			180,000		-				-			(4,513	)			-				-				-				175,487
Common Stock Issued under Purchase and Equity Compensation Plans		-			-		383,326				-			1,292				-				(891	)			6,259				6,660
Common Stock Repurchased		-			-		(37,156	)			-			-				-				-				(3,298	)			(3,298	)
Cash Dividends Declared Common Stock ($1.34 per share)		-			-		-				-			-				-				(54,139	)			-				(54,139	)
Balance as of June 30, 2021		180,000		$	180,000		40,465,482			$	580		$	594,261			$	(41,468	)		$	1,884,431			$	(1,034,273	)		$	1,583,531
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 Subsidiaries
Average 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 millions)		Balance			Expense			Rate			Balance				Expense			Rate			Balance				Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	2.2		$	-		0.04	%		$	3.2			$	-		0.93	%		$	2.6			$	-		0.18	%
Funds Sold			946.2			0.3		0.11				550.6				0.1		0.10				545.9				0.1		0.07
Investment Securities
Available-for-Sale
Taxable			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-Maturity
Taxable			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 Securities			7,840.8			30.1		1.54				7,444.1				29.2		1.57				5,658.3				31.5		2.22
Loans Held for Sale			25.7			0.2		2.86				26.2				0.2		2.76				23.4				0.2		3.24
Loans and Leases 1
Commercial and Industrial			1,934.5			16.8		3.49				1,904.5				14.3		3.05				1,963.8				17.9		3.67
Commercial 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 Financing			105.7			0.4		1.54				106.4				0.4		1.43				110.9				0.5		1.88
Residential Mortgage			4,234.3			35.6		3.35				4,146.6				35.9		3.46				3,939.6				36.0		3.65
Home 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 Leases			12,096.3			100.9		3.34				11,952.6				99.3		3.35				11,727.6				107.6		3.68
Other			32.3			0.2		2.26				33.4				0.2		2.21				34.0				0.1		1.47
Total Earning Assets 3			20,943.5			131.7		2.52				20,010.1				129.0		2.60				17,991.8				139.5		3.11
Cash and Due from Banks			256.1									270.7										302.4
Other Assets			874.0									869.9										895.4
Total Assets		$	22,073.6								$	21,150.7									$	19,189.6
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand		$	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 Interest-Bearing Deposits			13,403.8			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 Repurchase			570.3			3.5		2.41				600.5				3.6		2.35				602.9				4.0		2.64
Other Debt			30.2			0.2		3.22				60.5				0.3		2.22				60.5				0.5		2.91
Total Interest-Bearing Liabilities			14,004.3			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 Spread												2.30	%									2.36	%					2.71	%
Net Interest Margin												2.37	%									2.43	%					2.83	%
Noninterest-Bearing Demand Deposits			6,294.5									5,832.2										4,934.7
Other Liabilities			361.9									444.8										437.8
Shareholders' Equity			1,412.9									1,377.3										1,351.3
Total Liabilities and Shareholders' Equity		$	22,073.6								$	21,150.7									$	19,189.6

1		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.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis											Table 7b
		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			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	2.7		$	-		0.56	%		$	2.0		$	-		0.96	%
Funds Sold			749.5			0.4		0.11				349.3			0.6		0.36
Investment Securities
Available-for-Sale
Taxable			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-Maturity
Taxable			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 Securities			7,643.6			59.4		1.55				5,742.0			67.6		2.35
Loans Held for Sale			25.9			0.4		2.81				23.3			0.4		3.39
Loans and Leases 1
Commercial and Industrial			1,919.5			31.2		3.27				1,686.5			31.1		3.71
Commercial 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 Financing			106.1			0.8		1.48				111.1			1.1		1.91
Residential 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 Leases			12,024.8			200.2		3.35				11,394.2			215.9		3.80
Other			32.9			0.4		2.24				34.2			0.3		2.01
Total Earning Assets 3			20,479.4			260.8		2.56				17,545.0			284.8		3.26
Cash and Due from Banks			263.4									290.6
Other Assets			871.9									870.5
Total Assets		$	21,614.7								$	18,706.1
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand		$	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 Interest-Bearing Deposits			13,120.0			8.5		0.13				11,550.1			22.2		0.39
Short-Term Borrowings			1.2			-		0.09				57.7			0.2		0.52
Securities Sold Under Agreements to Repurchase			585.3			7.0		2.38				603.5			8.0		2.64
Other Debt			45.3			0.6		2.56				63.7			1.0		3.23
Total Interest-Bearing Liabilities			13,751.8			16.1		0.23				12,275.0			31.4		0.51
Net Interest Income					$	244.7								$	253.4
Interest Rate Spread								2.33	%								2.75	%
Net Interest Margin								2.40	%								2.90	%
Noninterest-Bearing Demand Deposits			6,064.6									4,698.5
Other Liabilities			403.1									400.0
Shareholders' Equity			1,395.2									1,332.6
Total Liabilities and Shareholders' Equity		$	21,614.7								$	18,706.1

1		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.

Bank of Hawaii Corporation and Subsidiaries
Analysis 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				Total
Change in Interest Income:
Funds Sold		$	0.1			$	0.1			$	0.2
Investment Securities
Available-for-Sale
Taxable			1.1				(0.6	)			0.5
Held-to-Maturity
Taxable			0.4				(0.1	)			0.3
Non-Taxable			0.1				-				0.1
Total Investment Securities			1.6				(0.7	)			0.9
Loans and Leases
Commercial 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 Deposits
Demand			-				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.

Bank of Hawaii Corporation and Subsidiaries
Analysis 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 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	0.1			$	0.1			$	0.2
Investment Securities
Available-for-Sale
Taxable			7.2				(5.2	)			2.0
Non-Taxable			(0.2	)			(0.1	)			(0.3	)
Held-to-Maturity
Taxable			2.7				(5.7	)			(3.0	)
Non-Taxable			(0.1	)			-				(0.1	)
Total Investment Securities			9.6				(11.0	)			(1.4	)
Loans and Leases
Commercial 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 Deposits
Demand			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.

Bank of Hawaii Corporation and Subsidiaries
Analysis 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				Total
Change in Interest Income:
Funds Sold		$	0.4			$	(0.6	)		$	(0.2	)
Investment Securities
Available-for-Sale
Taxable			13.6				(12.3	)			1.3
Non-Taxable			(0.4	)			-				(0.4	)
Held-to-Maturity
Taxable			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 Leases
Commercial 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 Deposits
Demand			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.

Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits														Table 9
		Three Months Ended									Six Months Ended
		June 30,			March 31,			June 30,			June 30,
(dollars in thousands)		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 Insurance			3,204			2,424			3,830			5,628			7,972
Separation 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 Subsidiaries
Loan and Lease Portfolio Balances														Table 10
		June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2021			2021			2020			2020			2020
Commercial
Commercial and Industrial		$	1,257,305		$	1,288,496		$	1,357,610		$	1,376,843		$	1,428,481
PPP 1			513,513			725,485			517,683			531,639			528,458
Commercial Mortgage			2,944,435			2,859,246			2,854,829			2,745,611			2,707,534
Construction			277,393			281,164			259,798			250,943			245,099
Lease Financing			110,500			104,980			110,766			111,831			113,187
Total Commercial			5,103,146			5,259,371			5,100,686			5,016,867			5,022,759
Consumer
Residential Mortgage			4,264,180			4,216,976			4,130,513			4,044,228			3,989,393
Home 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 Consumer			6,938,232			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
Deposits
		June 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
Commercial			8,675,909			8,241,102			7,302,832			7,159,531			7,295,033
Public and Other			1,645,515			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

1		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.

Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More																		Table 11
		June 30,				March 31,				December 31,				September 30,				June 30,
(dollars in thousands)		2021				2021				2020				2020				2020
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial		$	258			$	293			$	441			$	475			$	459
Commercial Mortgage			8,413				8,503				8,527				8,615				8,672
Total Commercial			8,671				8,796				8,968				9,090				9,131
Consumer
Residential Mortgage			2,437				1,804				3,223				3,543				5,888
Home Equity			5,534				4,951				3,958				3,661				5,176
Total Consumer			7,971				6,755				7,181				7,204				11,064
Total Non-Accrual Loans and Leases			16,642				15,551				16,149				16,294				20,195
Foreclosed Real Estate			2,332				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 More
Commercial
Commercial and Industrial		$	-			$	9			$	-			$	-			$	-
Total Commercial			-				9				-				-				-
Consumer
Residential Mortgage		$	4,069			$	4,069			$	5,274			$	6,607			$	4,937
Home 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 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 Leases			0.14	%			0.13	%			0.14	%			0.14	%			0.17	%
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate			0.16	%			0.15	%			0.15	%			0.16	%			0.19	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate			0.17	%			0.17	%			0.18	%			0.18	%			0.18	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate			0.15	%			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 Estate			0.23	%			0.23	%			0.24	%			0.24	%			0.27	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter		$	17,883			$	18,481			$	18,626			$	22,701			$	20,604
Additions			2,229				2,992				434				938				5,856
Reductions
Payments			(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

1

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

Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses																		Table 12
		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
(dollars in thousands)		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-Off
Commercial
Commercial and Industrial			(456	)			(248	)			(656	)			(704	)			(1,349	)
Consumer
Residential 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-Off
Commercial
Commercial and Industrial			144				112				1,524				256				1,813
Commercial Mortgage			-				-				-				-				40
Consumer
Residential Mortgage			481				955				118				1,436				381
Home 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
Total Recoveries on Loans and Leases Previously Charged-Off			3,125				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 Commitments			1,502				693				(798	)			2,195				(968	)
Balance at End of Period 2		$	186,371			$	203,779			$	175,958			$	186,371			$	175,958
Components
Allowance for Credit Losses - Loans and Leases		$	180,385				198,343				173,439			$	180,385				173,439
Allowance for Credit Losses - Accrued Interest Receivable			1,440				2,392				-				1,440				-
Reserve for Unfunded Commitments			4,546				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 to
Average 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 3			1.50	%			1.63	%			1.47	%			1.50	%			1.47	%

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

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information														Table 13a
		Consumer				Commercial				Treasury				Consolidated
(dollars in thousands)		Banking				Banking				and Other				Total
Three Months Ended June 30, 2021
Net Interest Income		$	71,167			$	49,038			$	3,309			$	123,514
Provision for Credit Losses			987				197				(17,284	)			(16,100	)
Net Interest Income After Provision for Credit Losses			70,180				48,841				20,593				139,614
Noninterest Income			32,600				6,575				5,256				44,431
Noninterest Expense			(72,868	)			(15,742	)			(7,917	)			(96,527	)
Income Before Income Taxes			29,912				39,674				17,932				87,518
Provision for Income Taxes			(7,365	)			(9,703	)			(2,917	)			(19,985	)
Net Income		$	22,547			$	29,971			$	15,015			$	67,533
Total Assets as of June 30, 2021		$	7,479,986			$	5,127,431			$	10,064,766			$	22,672,183
Three Months Ended June 30, 2020 1
Net Interest Income		$	73,221			$	51,219			$	2,251			$	126,691
Provision for Credit Losses			6,137				(1,025	)			35,288				40,400
Net Interest Income (Loss) After Provision for Credit Losses			67,084				52,244				(33,037	)			86,291
Noninterest Income			28,943				7,076				15,249				51,268
Noninterest Expense			(70,590	)			(14,776	)			(3,526	)			(88,892	)
Income (Loss) Before Income Taxes			25,437				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

1

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

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information														Table 13b
		Consumer				Commercial				Treasury				Consolidated
(dollars in thousands)		Banking				Banking				and Other				Total
Six Months Ended June 30, 2021
Net Interest Income		$	140,929			$	96,181			$	6,973			$	244,083
Provision for Credit Losses			3,853				247				(34,500	)			(30,400	)
Net Interest Income After Provision for Credit Losses			137,076				95,934				41,473				274,483
Noninterest Income			66,298				14,433				6,670				87,401
Noninterest Expense			(151,049	)			(31,419	)			(12,924	)			(195,392	)
Income Before Income Taxes			52,325				78,948				35,219				166,492
Provision for Income Taxes			(12,839	)			(19,261	)			(6,910	)			(39,010	)
Net Income		$	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 1
Net Interest Income		$	147,135			$	96,456			$	9,066			$	252,657
Provision for Credit Losses			9,588				(735	)			65,147				74,000
Net Interest Income (Loss) After Provision for Credit Losses			137,547				97,191				(56,081	)			178,657
Noninterest Income			61,533				18,811				17,073				97,417
Noninterest Expense			(141,336	)			(32,122	)			(11,746	)			(185,204	)
Income (Loss) Before Income Taxes			57,744				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

1

Certain 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
		June 30,				March 31,				December 31,				September 30,				June 30,
(dollars in thousands, except per share amounts)		2021				2021				2020				2020				2020
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases		$	100,894			$	99,299			$	98,471			$	103,189			$	107,628
Income on Investment Securities
Available-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 Income			131,379				128,765				128,316				134,017				139,145
Interest Expense
Deposits			4,152				4,329				4,861				5,891				7,954
Securities Sold Under Agreements to Repurchase			3,470				3,533				3,614				3,622				4,020
Funds Purchased			-				1				5				-				18
Short-Term Borrowings			-				-				-				1				22
Other Debt			243				333				337				337				440
Total Interest Expense			7,865				8,196				8,817				9,851				12,454
Net Interest Income			123,514				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 Losses			139,614				134,869				104,299				95,566				86,291
Noninterest Income
Trust and Asset Management			11,682				11,278				11,239				10,752				10,550
Mortgage Banking			3,058				5,862				6,851				4,047				4,278
Service Charges on Deposit Accounts			6,065				6,128				6,335				6,027				5,097
Fees, Exchange, and Other Service Charges			13,807				13,607				12,143				12,296				9,417
Investment Securities Gains (Losses), Net			2,423				(1,203	)			(1,193	)			(1,121	)			13,216
Annuity and Insurance			911				702				670				881				883
Bank-Owned Life Insurance			2,063				1,917				2,353				1,806				1,649
Other			4,422				4,679				6,860				7,046				6,178
Total Noninterest Income			44,431				42,970				45,258				41,734				51,268
Noninterest Expense
Salaries and Benefits			56,161				56,251				50,200				51,951				50,715
Net 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 Expense			96,527				98,865				98,654				89,949				88,892
Income Before Provision for Income Taxes			87,518				78,974				50,903				47,351				48,667
Provision for Income Taxes			19,985				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 Totals
Loans 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 Shareholders' Equity			1,583,531				1,360,221				1,374,507				1,361,739				1,352,082
Performance Ratios
Return on Average Assets			1.23	%			1.15	%			0.83	%			0.76	%			0.82	%
Return on Average Shareholders' Equity			19.17				17.65				12.26				11.01				11.58
Return on Average Common Equity			19.60				17.65				12.26				11.01				11.58
Efficiency Ratio 1			57.47				60.45				59.88				54.22				49.95
Net Interest Margin 2			2.37				2.43				2.48				2.67				2.83

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

Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends																			Table 15
		Five Months Ended						Year Ended
($ in millions; jobs in thousands)		May 31, 2021						December 31, 2020							December 31, 2019
Hawaii Economic Trends
State 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 2			596.5						588.2							659.7
												June 30,			December 31,
(spot rates)												2021			2020				2019
Unemployment, seasonally adjusted 3
Statewide												7.7	%			10.3	%		2.1	%
Oahu												6.7				9.3			2.0
Island of Hawaii												7.5				10.1			2.5
Maui												10.2				14.3			2.0
Kauai												10.8				13.9			2.1
								June 30,				December 31,
(percentage change, except months of inventory)								2021				2020			2019				2018
Housing Trends (Single Family Oahu) 4
Median Home Price									21.0	%		5.2	%			(0.1	)%		4.6	%
Home Sales Volume (units)									32.9	%		2.3	%			3.9	%		(7.7	)%
Months of Inventory									1.2			1.4				2.5			2.8
								Monthly Visitor Arrivals,							Percentage Change
(in thousands)								Not Seasonally Adjusted							from Previous Year
Tourism 5
May 31, 2021												629.7							6,807.4
April 30, 2021												484.1							10,506.3
March 31, 2021												439.8							1.1
February 28, 2021												235.3							(71.6	)
January 31, 2021												172.0							(80.1	)
December 31, 2020												235.8							(75.2	)
November 30, 2020												183.8							(77.3	)
October 31, 2020												76.6							(90.4	)
September 30, 2020												18.9							(97.4	)
August 31, 2020												22.3							(97.6	)
July 31, 2020												22.6							(97.7	)
June 30, 2020												17.1							(98.2	)
May 31, 2020												9.1							(98.9	)
April 30, 2020												4.6							(99.5	)
March 31, 2020												434.9							(53.7	)
February 29, 2020												828.1							5.8
January 31, 2020												862.6							5.1
December 31, 2019												952.4							5.8
November 30, 2019												809.1							3.9
October 31, 2019												796.2							4.3
September 30, 2019												738.2							3.1
August 31, 2019												926.4							9.6
July 31, 2019												995.2							5.9
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

1		Source: Hawaii Department of Business, Economic Development & Tourism
2		Source: U. S. Bureau of Labor Statistics
3		Source: UHERO
4		Source: Honolulu Board of REALTORS
5		Source: Hawaii Tourism Authority

 

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Source: Bank of Hawaii Corporation