Financial Release

• Diluted Earnings Per Share $1.29
• Net Income $52.1 Million
• Board of Directors Declares Dividend of $0.67 Per Share

HONOLULU--(BUSINESS WIRE)--Oct. 28, 2019-- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $1.29 for the third quarter of 2019, down from $1.40 in the second quarter of 2019 and $1.36 in the third quarter of 2018. Net income for the third quarter of 2019 was $52.1 million compared with net income of $56.9 million in the previous quarter and $56.9 million in the same quarter last year. Net income in the third quarter of 2019 included the previously announced increase in the legal reserve of $6.0 million related to the tentative settlement of a class action lawsuit regarding the Company’s overdraft practices.

Loan and lease balances increased to $10.9 billion at September 30, 2019, up 1.1 percent from June 30, 2019 and up 6.4 percent compared with September 30, 2018. Deposits were $15.3 billion at the end of the third quarter of 2019, down 1.0 percent from the previous quarter primarily due to a seasonal decline in public deposits and up 3.4 percent compared with the third quarter last year.

"We were pleased with Bank of Hawaii’s overall financial results during the third quarter of 2019," said Peter S. Ho, Chairman, President, and CEO. “Loan balances continue to grow, deposits were in line with our expectations, total revenue increased, asset quality remains strong, and our core expenses were well controlled.”

The return on average assets for the third quarter of 2019 was 1.17 percent compared with 1.31 percent in the previous quarter and 1.33 percent in the same quarter last year. The return on average equity for the third quarter of 2019 was 16.02 percent compared with 17.97 percent for the second quarter of 2019 and 18.06 percent in the third quarter of 2018. The efficiency ratio for the third quarter of 2019 was 58.55 percent compared with 54.69 percent in the previous quarter and 55.07 percent in the same quarter last year.

For the nine-month period ended September 30, 2019, net income was $167.8 million, an increase of $2.1 million from net income of $165.7 million for the same period last year. Diluted earnings per share were $4.11 for the nine-month period in 2019 compared with diluted earnings per share of $3.93 for the same period in 2018. The 2019 year-to-date return on average assets was 1.29 percent compared with 1.31 percent for the same period in 2018. The 2019 year-to-date return on average equity was 17.58 percent compared with 17.83 percent for the nine months ended September 30, 2018. The efficiency ratio for the nine-month period ended September 30, 2019 was 56.16 percent compared with 56.36 percent for the same period last year.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the third quarter of 2019 was $125.2 million, an increase of $0.5 million from net interest income of $124.7 million in the second quarter of 2019 and an increase of $1.0 million from net interest income of $124.2 million in the third quarter of last year. Net interest income for the nine-month period in 2019 was $375.7 million, an increase of $9.4 million from net interest income of $366.3 million for the same period in 2018. Analyses of the changes in net interest income are included in Tables 8a, 8b, and 8c.

The net interest margin was 3.01 percent for the third quarter of 2019, a decrease of 3 basis points from the net interest margin of 3.04 percent in the second quarter of 2019 and a 6 basis point decrease from the net interest margin of 3.07 percent in the third quarter of 2018. The net interest margin for the first nine months of 2019 was 3.05 percent, an increase of 1 basis point compared with 3.04 percent for the same nine-month period last year.

Results for the third quarter of 2019 included a provision for credit losses of $4.3 million compared with a provision for credit losses of $4.0 million in the previous quarter and $3.8 million in the same quarter last year. The provision for credit losses during the first nine months of 2019 was $11.3 million compared with $11.4 million during the same period in 2018.

Noninterest income was $46.5 million in the third quarter of 2019, up $1.0 million from noninterest income of $45.5 million in the second quarter of 2019 and up $5.0 million from $41.5 million in the same quarter last year. Noninterest income during the third quarter of 2019 included a negative adjustment of $0.5 million related to a change in the Visa Class B conversion ratio. There were no significant items in noninterest income during the second quarter of 2019 or the third quarter of 2018. The increase in noninterest income compared to the third quarter of 2018 was largely due to an increase in mortgage banking income and customer derivative activity. Noninterest income for the nine-months ended September 30, 2019 was $135.6 million, an increase of $8.8 million compared with noninterest income of $126.8 million for the same period in 2018.

Noninterest expense was $100.3 million in the third quarter of 2019, up $7.6 million from noninterest expense of $92.7 million in the previous quarter and up $9.8 million from $90.5 million in the same quarter last year. Noninterest expense during the third quarter of 2019 included the previously mentioned $6.0 million increase in the legal reserve. There were no significant items in noninterest expense during the second quarter of 2019 or the third quarter of 2018. Noninterest expense for the nine-months ended September 30, 2019 was $286.1 million compared with noninterest expense of $275.7 million for the same period in 2018. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the third quarter of 2019 was 22.08 percent compared with 21.84 percent in the previous quarter and 18.75 percent during the same quarter last year. The effective tax rate for the nine-month period ended September 30, 2019 was 20.89 percent compared with 18.00 percent for the same period last year.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services and Private Banking, and Treasury and Other. Results are determined based on the Company’s internal financial management reporting process and organizational structure. Selected financial information for the business segments is included in Tables 13a and 13b.

Asset Quality

The Company’s overall asset quality remained strong during the third quarter of 2019. Total non-performing assets were $21.6 million at September 30, 2019, down from $21.8 million at June 30, 2019 and up from $13.8 million at September 30, 2018. As a percentage of total loans and leases and foreclosed real estate, non-performing assets were 0.20 percent at September 30, 2019, unchanged from June 30, 2019 and up from 0.13 percent at September 30, 2018.

Accruing loans and leases past due 90 days or more were $6.1 million at September 30, 2019 compared with $6.4 million at June 30, 2019 and $8.1 million at September 30, 2018. Restructured loans and leases not included in non-accrual loans or accruing loans past due 90 days or more were $46.2 million at September 30, 2019, down from $48.6 million at June 30, 2019 and $49.5 million at September 30, 2018. 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 third quarter of 2019 were $3.0 million or 0.11 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $5.8 million during the quarter were partially offset by recoveries of $2.8 million. Net charge-offs during the second quarter of 2019 were $2.4 million or 0.09 percent annualized of total average loans and leases outstanding and were comprised of $5.1 million in charge-offs partially offset by recoveries of $2.8 million. Net charge-offs during the third quarter of 2018 were $3.3 million or 0.13 percent annualized of total average loans and leases outstanding and were comprised of $6.0 million in charge-offs partially offset by recoveries of $2.7 million. Net charge-offs in the nine-month period ended September 30, 2019 were $9.0 million, or 0.11 percent annualized of total average loans and leases outstanding compared with net charge-offs of $10.1 million, or 0.14 percent annualized of total average loans and leases outstanding for the same period in 2018.

The allowance for loan and lease losses was $108.9 million at September 30, 2019 compared with $107.7 million at June 30, 2019 and $108.7 million at September 30, 2018. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.00 percent at September 30, 2019, unchanged from the previous quarter and down 6 basis points from the end of the same quarter last year. The reserve for unfunded commitments at September 30, 2019 of $6.8 million was unchanged from June 30, 2019 and September 30, 2018. 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 were $17.7 billion at September 30, 2019, down $16.7 million from June 30, 2019 and up $680.4 million from total assets of $17.0 billion at September 30, 2018. Average total assets were $17.6 billion during the third quarter of 2019 compared with $17.5 billion during the previous quarter and $17.0 billion during the same quarter last year.

The investment securities portfolio was $5.5 billion at September 30, 2019, a decrease of $68.3 million from total securities of $5.6 billion at June 30, 2019 and a decrease of $172.9 million from total securities of $5.7 billion at September 30, 2018. The portfolio remains largely comprised of securities issued by U. S. government agencies and included $2.9 billion in securities held to maturity and $2.6 billion in securities available for sale at September 30, 2019.

Total loans and leases were $10.9 billion at September 30, 2019, an increase of $122.2 million from total loans and leases of $10.8 billion at June 30, 2019 and up $650.2 million from total loans and leases of $10.2 billion at September 30, 2018. Average total loans and leases were $10.8 billion during the third quarter of 2019 compared with $10.6 billion during the previous quarter and $10.1 billion during the same quarter last year. The commercial loan portfolio increased to $4.2 billion at the end of the third quarter of 2019, up $54.4 million from $4.1 billion at the end of the previous quarter and up $256.4 million from $3.9 billion at the end of the third quarter last year. Total consumer loans increased to $6.7 billion at the end of the third quarter of 2019, up $67.8 million from $6.7 billion at the end of the previous quarter and up $393.8 million from $6.3 billion at the end of the third quarter last year. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $15.3 billion at September 30, 2019, a decrease of $148.1 million from total deposits of $15.5 billion at June 30, 2019 and an increase of $497.4 million from total deposits of $14.8 billion at September 30, 2018. Average total deposits were $15.3 billion during the third quarter of 2019 compared with $15.2 billion during the previous quarter and $14.8 billion during the same quarter last year. Consumer deposits were $7.9 billion at the end of the third quarter of 2019, up $13.2 million from $7.9 billion at the end of the previous quarter and up $265.9 million from $7.6 billion at the end of the same quarter last year. Commercial deposits were $6.2 billion at the end of the third quarter of 2019, down $25.5 million from $6.2 billion at the end of the previous quarter and up $186.1 million from $6.0 billion at the end of the same quarter last year. Other deposits, including public funds, were $1.3 billion at September 30, 2019, down $135.7 million from $1.4 billion at June 30, 2019 and up $45.3 million from $1.2 billion at September 30, 2018. Deposit balances are summarized in Tables 7 and 10.

During the third quarter of 2019, the Company repurchased 0.4 million shares of common stock at a total cost of $29.9 million under its share repurchase program. The average cost was $83.07 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through September 30, 2019, the Company has repurchased 56.6 million shares and returned $2.3 billion to shareholders at an average cost of $40.09 per share. Remaining buyback authority under the share repurchase program was $57.0 million at September 30, 2019. From October 1 through October 25, 2019 the Company repurchased an additional 92.0 thousand shares of common stock at an average cost of $84.46 per share.

Total shareholders’ equity was $1.29 billion at September 30, 2019, up slightly from $1.29 billion at June 30, 2019 and up from $1.25 billion at September 30, 2018. The Tier 1 Capital Ratio was 12.33 percent at September 30, 2019 compared with 12.46 percent at June 30, 2019 and 13.20 percent at September 30, 2018. The Tier 1 leverage ratio at September 30, 2019 was 7.32 percent compared with 7.36 percent at June 30, 2019 and 7.55 percent at September 30, 2018.

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 December 13, 2019 to shareholders of record at the close of business on November 29, 2019.

Hawaii Economy

General economic conditions in Hawaii remained positive during the third quarter of 2019 although recent trends indicate a more modest growth rate for the State going forward. The statewide seasonally-adjusted unemployment rate continues to remain low at 2.7 percent in September 2019 compared to 3.5 percent nationally. Total visitor arrivals increased 5.2 percent in the first eight months of 2019 compared to the same eight-month period in 2018 supported by strong growth in air seat capacity. Total visitor spending decreased 0.5 percent for the eight-month period in 2019 compared with the same eight-month period in 2018. The real estate market remains active with strong growth in single-family home sales during the third quarter of 2019. For the first nine months of 2019, the median sales price of a single-family home on Oahu decreased 0.5 percent and the median price of a condominium on Oahu decreased 1.0 percent compared with the same period in 2018. The volume of single-family home sales on Oahu increased 0.8 percent and the volume of condominium sales on Oahu decreased 6.7 percent for the first nine months of 2019 compared to the same nine-month period in 2018. As of September 30, 2019, months of inventory of single-family homes and condominiums on Oahu were 3.5 months and 3.9 months, respectively. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The call will be accessible via teleconference and via the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. The toll-free number is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, October 28, 2019. 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 2768225 when prompted. In addition, a replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2018, 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 web site, www.boh.com.

Bank of Hawaii Corporation and Subsidiaries
Financial Highlights																		Table 1
		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,
(dollars in thousands, except per share amounts)		2019				2019				2018				2019				2018
For the Period:
Operating Results
Net Interest Income		$	124,896			$	124,097			$	122,927			$	373,830			$	362,379
Provision for Credit Losses			4,250				4,000				3,800				11,250				11,425
Total Noninterest Income			46,507				45,450				41,482				135,636				126,815
Total Noninterest Expense			100,349				92,725				90,538				286,131				275,713
Net Income			52,052				56,919				56,933				167,770				165,691
Basic Earnings Per Share			1.30				1.40				1.37				4.14				3.96
Diluted Earnings Per Share			1.29				1.40				1.36				4.11				3.93
Dividends Declared Per Share			0.65				0.65				0.60				1.92				1.72
Performance Ratios
Return on Average Assets			1.17	%			1.31	%			1.33	%			1.29	%			1.31	%
Return on Average Shareholders' Equity			16.02				17.97				18.06				17.58				17.83
Efficiency Ratio 1			58.55				54.69				55.07				56.16				56.36
Net Interest Margin 2			3.01				3.04				3.07				3.05				3.04
Dividend Payout Ratio 3			50.00				46.43				43.80				46.38				43.43
Average Shareholders' Equity to Average Assets			7.32				7.27				7.35				7.31				7.32
Average Balances
Average Loans and Leases		$	10,770,720			$	10,631,558			$	10,081,886			$	10,624,311			$	9,950,518
Average Assets			17,605,394				17,480,651				17,015,340				17,442,054				16,965,075
Average Deposits			15,330,691				15,162,782				14,820,480				15,156,275				14,750,382
Average Shareholders' Equity			1,289,417				1,270,162				1,250,500				1,275,753				1,242,629
Per Share of Common Stock
Book Value		$	32.00			$	31.61			$	29.98			$	32.00			$	29.98
Tangible Book Value			31.22				30.83				29.22				31.22				29.22
Market Value
Closing			85.93				82.91				78.91				85.93				78.91
High			88.20				84.53				86.53				88.20				89.09
Low			79.13				75.24				78.30				66.54				78.30
						September 30,				June 30,				December 31,				September 30,
						2019				2019				2018				2018
As of Period End:
Balance Sheet Totals
Loans and Leases						$	10,881,298			$	10,759,129			$	10,448,774			$	10,231,062
Total Assets							17,672,140				17,688,845				17,143,974				16,991,734
Total Deposits							15,340,752				15,488,821				15,027,242				14,843,335
Other Debt							110,585				110,605				135,643				185,662
Total Shareholders' Equity							1,291,490				1,285,948				1,268,200				1,253,327
Asset Quality
Non-Performing Assets						$	21,645			$	21,782			$	12,930			$	13,798
Allowance for Loan and Lease Losses							108,936				107,672				106,693				108,690
Allowance to Loans and Leases Outstanding							1.00	%			1.00	%			1.02	%			1.06	%
Capital Ratios
Common Equity Tier 1 Capital Ratio							12.33	%			12.46	%			13.07	%			13.20	%
Tier 1 Capital Ratio							12.33				12.46				13.07				13.20
Total Capital Ratio							13.44				13.57				14.21				14.38
Tier 1 Leverage Ratio							7.32				7.36				7.60				7.55
Total Shareholders' Equity to Total Assets							7.31				7.27				7.40				7.38
Tangible Common Equity to Tangible Assets 4							7.14				7.10				7.23				7.20
Tangible Common Equity to Risk-Weighted Assets 4							12.10				12.17				12.52				12.56
Non-Financial Data
Full-Time Equivalent Employees							2,124				2,152				2,122				2,143
Branches							67				68				69				69
ATMs							379				383				382				382

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

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

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

4 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."

Note: Common Equity Tier 1 and Tier 1 Capital Ratios were revised from 13.19% and Tangible Common Equity to Risk-Weighted Assets was revised from 12.55% as of September 30, 2018.

Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures														Table 2
		September 30,				June 30,				December 31,				September 30,
(dollars in thousands)		2019				2019				2018				2018
Total Shareholders' Equity		$	1,291,490			$	1,285,948			$	1,268,200			$	1,253,327
Less: Goodwill			31,517				31,517				31,517				31,517
Tangible Common Equity		$	1,259,973			$	1,254,431			$	1,236,683			$	1,221,810
Total Assets		$	17,672,140			$	17,688,845			$	17,143,974			$	16,991,734
Less: Goodwill			31,517				31,517				31,517				31,517
Tangible Assets		$	17,640,623			$	17,657,328			$	17,112,457			$	16,960,217
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements		$	10,416,560			$	10,309,085			$	9,878,904			$	9,731,082
Total Shareholders' Equity to Total Assets			7.31	%			7.27	%			7.40	%			7.38	%
Tangible Common Equity to Tangible Assets (Non-GAAP)			7.14	%			7.10	%			7.23	%			7.20	%
Tier 1 Capital Ratio			12.33	%			12.46	%			13.07	%			13.20	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)			12.10	%			12.17	%			12.52	%			12.56	%

Note: Risk-Weighted Assets was revised from $9,732,618, Tier 1 Capital Ratio was revised from 13.19%, and Tangible Common Equity to Risk-Weighted Assets was revised from 12.55% as of September 30, 2018.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income																			Table 3
		Three Months Ended													Nine Months Ended
		September 30,				June 30,				September 30,					September 30,
(dollars in thousands, except per share amounts)		2019				2019				2018					2019				2018
Interest Income
Interest and Fees on Loans and Leases		$	110,877			$	110,401			$	104,248				$	329,789			$	303,193
Income on Investment Securities
Available-for-Sale			17,512				15,072				12,588					46,016				37,109
Held-to-Maturity			18,796				22,149				20,821					62,866				62,828
Deposits			9				9				10					33				24
Funds Sold			656				730				1,393					2,830				2,996
Other			233				210				364					762				1,005
Total Interest Income			148,083				148,571				139,424					442,296				407,155
Interest Expense
Deposits			18,055				18,628				10,931					51,967				27,971
Securities Sold Under Agreements to Repurchase			4,257				4,623				4,667					13,451				13,848
Funds Purchased			146				512				33					815				169
Short-Term Borrowings			1				1				28					38				57
Other Debt			728				710				838					2,195				2,731
Total Interest Expense			23,187				24,474				16,497					68,466				44,776
Net Interest Income			124,896				124,097				122,927					373,830				362,379
Provision for Credit Losses			4,250				4,000				3,800					11,250				11,425
Net Interest Income After Provision for Credit Losses			120,646				120,097				119,127					362,580				350,954
Noninterest Income
Trust and Asset Management			10,930				11,385				10,782					33,076				33,319
Mortgage Banking			4,864				3,336				1,965					10,487				6,289
Service Charges on Deposit Accounts			7,592				7,283				7,255					22,239				21,249
Fees, Exchange, and Other Service Charges			14,900				14,252				14,173					43,360				42,906
Investment Securities Gains (Losses), Net			(1,469	)			(776	)			(729	)				(3,080	)			(3,097	)
Annuity and Insurance			1,278				1,806				1,360					5,662				4,413
Bank-Owned Life Insurance			1,647				1,779				1,620					5,136				5,258
Other			6,765				6,385				5,056					18,756				16,478
Total Noninterest Income			46,507				45,450				41,482					135,636				126,815
Noninterest Expense
Salaries and Benefits			54,345				53,511				51,782					164,442				158,352
Net Occupancy			8,803				8,579				8,702					24,976				25,824
Net Equipment			7,637				6,895				6,116					21,365				17,488
Data Processing			4,676				4,727				4,241					13,929				12,695
Professional Fees			2,184				2,177				2,206					6,814				7,525
FDIC Insurance			1,257				1,290				2,057					3,816				6,396
Other			21,447				15,546				15,434					50,789				47,433
Total Noninterest Expense			100,349				92,725				90,538					286,131				275,713
Income Before Provision for Income Taxes			66,804				72,822				70,071					212,085				202,056
Provision for Income Taxes			14,752				15,903				13,138					44,315				36,365
Net Income		$	52,052			$	56,919			$	56,933				$	167,770			$	165,691
Basic Earnings Per Share		$	1.30			$	1.40			$	1.37				$	4.14			$	3.96
Diluted Earnings Per Share		$	1.29			$	1.40			$	1.36				$	4.11			$	3.93
Dividends Declared Per Share		$	0.65			$	0.65			$	0.60				$	1.92			$	1.72
Basic Weighted Average Shares			40,190,508				40,541,594				41,620,776					40,554,036				41,846,080
Diluted Weighted Average Shares			40,450,742				40,769,767				41,899,401					40,806,295				42,133,776

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income																Table 4
		Three Months Ended											Nine Months Ended
		September 30,			June 30,			September 30,					September 30,
(dollars in thousands)		2019			2019			2018					2019			2018
Net Income		$	52,052		$	56,919		$	56,933				$	167,770		$	165,691
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities			5,405			16,209			(5,599	)				28,533			(17,694	)
Defined Benefit Plans			245			245			216					736			648
Other Comprehensive Income (Loss)			5,650			16,454			(5,383	)				29,269			(17,046	)
Comprehensive Income		$	57,702		$	73,373		$	51,550				$	197,039		$	148,645

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition														Table 5
		September 30,				June 30,				December 31,				September 30,
(dollars in thousands)		2019				2019				2018				2018
Assets
Interest-Bearing Deposits in Other Banks		$	2,946			$	3,859			$	3,028			$	3,725
Funds Sold			108,446				204,340				198,860				104,199
Investment Securities
Available-for-Sale			2,594,394				2,649,949				2,007,942				2,049,687
Held-to-Maturity (Fair Value of $2,972,273; $2,973,229; $3,413,994; and $3,549,235)			2,946,910				2,959,611				3,482,092				3,664,487
Loans Held for Sale			36,720				22,706				10,987				18,063
Loans and Leases			10,881,298				10,759,129				10,448,774				10,231,062
Allowance for Loan and Lease Losses			(108,936	)			(107,672	)			(106,693	)			(108,690	)
Net Loans and Leases			10,772,362				10,651,457				10,342,081				10,122,372
Total Earning Assets			16,461,778				16,491,922				16,044,990				15,962,533
Cash and Due from Banks			259,492				282,164				324,081				227,049
Premises and Equipment, Net			179,453				169,671				151,837				142,928
Operating Lease Right-of-Use Assets			101,005				103,336				-				-
Accrued Interest Receivable			47,897				49,726				51,230				54,839
Foreclosed Real Estate			2,939				2,737				1,356				1,909
Mortgage Servicing Rights			24,408				24,233				24,310				24,463
Goodwill			31,517				31,517				31,517				31,517
Bank-Owned Life Insurance			286,936				285,295				283,771				282,637
Other Assets			276,715				248,244				230,882				263,859
Total Assets		$	17,672,140			$	17,688,845			$	17,143,974			$	16,991,734
Liabilities
Deposits
Noninterest-Bearing Demand		$	4,392,706			$	4,528,251			$	4,739,596			$	4,678,981
Interest-Bearing Demand			3,000,865				3,033,066				3,002,925				2,975,069
Savings			6,141,098				6,004,528				5,539,199				5,444,053
Time			1,806,083				1,922,976				1,745,522				1,745,232
Total Deposits			15,340,752				15,488,821				15,027,242				14,843,335
Short-Term Borrowings			-				-				199				629
Securities Sold Under Agreements to Repurchase			604,299				504,299				504,296				504,293
Other Debt			110,585				110,605				135,643				185,662
Operating Lease Liabilities			108,264				110,483				-				-
Retirement Benefits Payable			39,682				40,047				40,494				36,288
Accrued Interest Payable			8,435				9,454				8,253				7,689
Taxes Payable and Deferred Taxes			21,089				21,337				19,736				15,549
Other Liabilities			147,544				117,851				139,911				144,962
Total Liabilities			16,380,650				16,402,897				15,875,774				15,738,407
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: September 30, 2019 - 58,176,305 / 40,359,259; June 30, 2019 - 58,175,367 / 40,687,719; December 31, 2018 - 58,063,689 / 41,499,898; and September 30, 2018 - 58,070,578 / 41,809,551)			579				579				577				577
Capital Surplus			580,200				577,346				571,704				569,223
Accumulated Other Comprehensive Loss			(21,774	)			(27,424	)			(51,043	)			(59,238	)
Retained Earnings			1,730,437				1,704,993				1,641,314				1,612,998
Treasury Stock, at Cost (Shares: September 30, 2019 - 17,817,046; June 30, 2019 - 17,487,648; December 31, 2018 - 16,563,791; and September 30, 2018 - 16,261,027)			(997,952	)			(969,546	)			(894,352	)			(870,233	)
Total Shareholders' Equity			1,291,490				1,285,948				1,268,200				1,253,327
Total Liabilities and Shareholders' Equity		$	17,672,140			$	17,688,845			$	17,143,974			$	16,991,734

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, 2018		41,499,898			$	577		$	571,704		$	(51,043	)		$	1,641,314			$	(894,352	)		$	1,268,200
Net Income		-				-			-			-				167,770				-				167,770
Other Comprehensive Income		-				-			-			29,269				-				-				29,269
Share-Based Compensation		-				-			6,662			-				-				-				6,662
Common Stock Issued under Purchase and Equity
Compensation Plans		200,984				2			1,834			-				(109	)			4,275				6,002
Common Stock Repurchased		(1,341,623	)			-			-			-				-				(107,875	)			(107,875	)
Cash Dividends Declared ($1.92 per share)		-				-			-			-				(78,538	)			-				(78,538	)
Balance as of September 30, 2019		40,359,259			$	579		$	580,200		$	(21,774	)		$	1,730,437			$	(997,952	)		$	1,291,490
Balance as of December 31, 2017		42,401,443			$	576		$	561,161		$	(34,715	)		$	1,512,218			$	(807,372	)		$	1,231,868
Net Income		-				-			-			-				165,691				-				165,691
Other Comprehensive Loss		-				-			-			(17,046	)			-				-				(17,046	)
Reclassification of the Income Tax Effects of the
Tax Cuts and Jobs Act from AOCI		-				-			-			(7,477	)			7,477				-				-
Share-Based Compensation		-				-			6,208			-				-				-				6,208
Common Stock Issued under Purchase and Equity
Compensation Plans		203,289				1			1,854			-				251				4,127				6,233
Common Stock Repurchased		(795,181	)			-			-			-				-				(66,988	)			(66,988	)
Cash Dividends Declared ($1.72 per share)		-				-			-			-				(72,639	)			-				(72,639	)
Balance as of September 30, 2018		41,809,551			$	577		$	569,223		$	(59,238	)		$	1,612,998			$	(870,233	)		$	1,253,327

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
		September 30, 2019									June 30, 2019									September 30, 2018
		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		$	3.1		$	-		1.19	%		$	2.9		$	-		1.25	%		$	3.6		$	-		1.09	%
Funds Sold			121.1			0.7		2.12				123.6			0.8		2.34				281.9			1.4		1.93
Investment Securities
Available-for-Sale
Taxable			2,647.9			17.1		2.59				2,004.3			14.3		2.87				1,512.1			9.5		2.51
Non-Taxable			42.6			0.5		4.45				86.8			0.9		4.15				567.5			3.9		2.75
Held-to-Maturity
Taxable			2,873.7			18.5		2.57				3,358.0			21.0		2.50				3,413.7			19.3		2.26
Non-Taxable			65.2			0.4		2.72				193.0			1.5		3.08				236.1			1.9		3.16
Total Investment Securities			5,629.4			36.5		2.59				5,642.1			37.7		2.68				5,729.4			34.6		2.41
Loans Held for Sale			24.3			0.2		3.94				18.7			0.2		4.05				14.9			0.2		4.45
Loans and Leases 1
Commercial and Industrial			1,383.8			14.4		4.14				1,385.7			14.9		4.31				1,279.4			13.0		4.04
Commercial Mortgage			2,423.7			26.2		4.28				2,386.3			25.9		4.35				2,180.5			23.0		4.19
Construction			126.0			1.6		5.10				125.3			1.7		5.51				187.0			2.2		4.65
Commercial Lease Financing			161.8			1.0		2.57				159.9			1.0		2.49				175.0			1.0		2.30
Residential Mortgage			3,809.6			36.5		3.83				3,730.4			36.0		3.87				3,563.5			34.0		3.82
Home Equity			1,689.2			16.1		3.79				1,694.9			16.2		3.83				1,622.4			15.7		3.83
Automobile			707.0			6.4		3.59				688.5			6.2		3.62				606.3			5.9		3.84
Other 2			469.6			8.5		7.16				460.6			8.4		7.33				467.8			9.3		7.90
Total Loans and Leases			10,770.7			110.7		4.09				10,631.6			110.3		4.16				10,081.9			104.1		4.11
Other			35.0			0.3		2.66				35.0			0.2		2.40				38.9			0.4		3.74
Total Earning Assets 3			16,583.6			148.4		3.56				16,453.9			149.2		3.63				16,150.6			140.7		3.47
Cash and Due from Banks			231.5									241.6									252.1
Other Assets			790.3									785.2									612.6
Total Assets		$	17,605.4								$	17,480.7								$	17,015.3
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand		$	2,950.2			1.1		0.15			$	2,902.5			1.4		0.19			$	2,999.5			1.3		0.17
Savings			6,122.0			8.8		0.57				6,002.0			8.9		0.60				5,482.4			3.8		0.28
Time			1,851.0			8.2		1.75				1,866.6			8.3		1.79				1,683.0			5.8		1.37
Total Interest-Bearing Deposits			10,923.2			18.1		0.66				10,771.1			18.6		0.69				10,164.9			10.9		0.43
Short-Term Borrowings			27.1			0.1		2.13				82.3			0.5		2.46				11.6			0.1		2.06
Securities Sold Under Agreements to Repurchase			513.8			4.3		3.24				504.3			4.7		3.63				504.3			4.7		3.62
Other Debt			110.6			0.7		2.62				110.6			0.7		2.57				208.5			0.8		1.60
Total Interest-Bearing Liabilities			11,574.7			23.2		0.79				11,468.3			24.5		0.85				10,889.3			16.5		0.60
Net Interest Income					$	125.2								$	124.7								$	124.2
Interest Rate Spread								2.77	%								2.78	%								2.87	%
Net Interest Margin								3.01	%								3.04	%								3.07	%
Noninterest-Bearing Demand Deposits			4,407.5									4,391.7									4,655.6
Other Liabilities			333.8									350.5									219.9
Shareholders' Equity			1,289.4									1,270.2									1,250.5
Total Liabilities and Shareholders' Equity		$	17,605.4								$	17,480.7								$	17,015.3

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 $296,000, $601,000, and $1,265,000 for the three months ended September 30, 2019, June 30, 2019, and September 30, 2018, respectively.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																	Table 7b
		Nine Months Ended									Nine Months Ended
		September 30, 2019									September 30, 2018
		Average			Income/			Yield/			Average			Income/			Yield/
(dollars in millions)		Balance			Expense			Rate			Balance			Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	3.0		$	-		1.49	%		$	3.2		$	-		0.99	%
Funds Sold			161.7			2.8		2.31				224.3			3.0		1.76
Investment Securities
Available-for-Sale
Taxable			2,086.5			43.0		2.75				1,556.9			27.6		2.36
Non-Taxable			135.3			3.8		3.73				585.1			12.1		2.76
Held-to-Maturity
Taxable			3,199.9			59.9		2.50				3,504.8			58.4		2.22
Non-Taxable			163.5			3.8		3.08				237.0			5.6		3.17
Total Investment Securities			5,585.2			110.5		2.64				5,883.8			103.7		2.35
Loans Held for Sale			18.5			0.6		4.06				14.6			0.5		4.23
Loans and Leases 1
Commercial and Industrial			1,375.9			44.6		4.33				1,289.3			37.6		3.90
Commercial Mortgage			2,373.9			76.9		4.33				2,133.8			65.5		4.10
Construction			133.8			5.2		5.22				186.6			6.5		4.64
Commercial Lease Financing			160.9			3.0		2.45				178.0			3.0		2.25
Residential Mortgage			3,740.5			108.0		3.85				3,523.1			100.9		3.82
Home Equity			1,691.4			48.4		3.83				1,610.2			45.4		3.77
Automobile			688.0			18.6		3.62				574.1			17.1		3.99
Other 2			459.9			24.8		7.21				455.4			26.9		7.89
Total Loans and Leases			10,624.3			329.5		4.14				9,950.5			302.9		4.07
Other			35.2			0.8		2.89				39.8			1.0		3.37
Total Earning Assets 3			16,427.9			444.2		3.61				16,116.2			411.1		3.41
Cash and Due from Banks			237.9									244.0
Other Assets			776.3									604.9
Total Assets		$	17,442.1								$	16,965.1
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand		$	2,930.9			4.0		0.18			$	2,982.5			3.2		0.15
Savings			5,962.9			24.4		0.55				5,414.1			9.1		0.22
Time			1,807.6			23.6		1.75				1,700.6			15.7		1.23
Total Interest-Bearing Deposits			10,701.4			52.0		0.65				10,097.2			28.0		0.37
Short-Term Borrowings			46.8			0.9		2.40				17.2			0.2		1.73
Securities Sold Under Agreements to Repurchase			507.5			13.4		3.50				504.9			13.9		3.62
Other Debt			113.7			2.2		2.58				233.6			2.7		1.56
Total Interest-Bearing Liabilities			11,369.4			68.5		0.80				10,852.9			44.8		0.55
Net Interest Income					$	375.7								$	366.3
Interest Rate Spread								2.81	%								2.86	%
Net Interest Margin								3.05	%								3.04	%
Noninterest-Bearing Demand Deposits			4,454.9									4,653.2
Other Liabilities			342.0									216.4
Shareholders' Equity			1,275.8									1,242.6
Total Liabilities and Shareholders' Equity		$	17,442.1								$	16,965.1

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 $1,878,000 and $3,907,000 for the nine months ended September 30, 2019 and September 30, 2018, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8a
		Three Months Ended September 30, 2019
		Compared to June 30, 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			4.3				(1.5	)			2.8
Non-Taxable			(0.5	)			0.1				(0.4	)
Held-to-Maturity
Taxable			(3.0	)			0.5				(2.5	)
Non-Taxable			(0.9	)			(0.2	)			(1.1	)
Total Investment Securities			(0.1	)			(1.1	)			(1.2	)
Loans and Leases
Commercial and Industrial			(0.1	)			(0.4	)			(0.5	)
Commercial Mortgage			0.6				(0.3	)			0.3
Construction			-				(0.1	)			(0.1	)
Residential Mortgage			0.8				(0.3	)			0.5
Home Equity			-				(0.1	)			(0.1	)
Automobile			0.2				-				0.2
Other 2			0.2				(0.1	)			0.1
Total Loans and Leases			1.7				(1.3	)			0.4
Other			-				0.1				0.1
Total Change in Interest Income			1.6				(2.4	)			(0.8	)
Change in Interest Expense:
Interest-Bearing Deposits
Demand			-				(0.3	)			(0.3	)
Savings			0.2				(0.3	)			(0.1	)
Time			-				(0.1	)			(0.1	)
Total Interest-Bearing Deposits			0.2				(0.7	)			(0.5	)
Short-Term Borrowings			(0.3	)			(0.1	)			(0.4	)
Securities Sold Under Agreements to Repurchase			0.1				(0.5	)			(0.4	)
Total Change in Interest Expense			-				(1.3	)			(1.3	)
Change in Net Interest Income		$	1.6			$	(1.1	)		$	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
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8b
		Three Months Ended September 30, 2019
		Compared to September 30, 2018
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	(0.9	)		$	0.2			$	(0.7	)
Investment Securities
Available-for-Sale
Taxable			7.3				0.3				7.6
Non-Taxable			(4.9	)			1.5				(3.4	)
Held-to-Maturity
Taxable			(3.2	)			2.4				(0.8	)
Non-Taxable			(1.3	)			(0.2	)			(1.5	)
Total Investment Securities			(2.1	)			4.0				1.9
Loans Held for Sale			0.1				(0.1	)			-
Loans and Leases
Commercial and Industrial			1.1				0.3				1.4
Commercial Mortgage			2.6				0.6				3.2
Construction			(0.8	)			0.2				(0.6	)
Commercial Lease Financing			(0.1	)			0.1				-
Residential Mortgage			2.4				0.1				2.5
Home Equity			0.6				(0.2	)			0.4
Automobile			0.9				(0.4	)			0.5
Other 2			0.1				(0.9	)			(0.8	)
Total Loans and Leases			6.8				(0.2	)			6.6
Other			-				(0.1	)			(0.1	)
Total Change in Interest Income			3.9				3.8				7.7
Change in Interest Expense:
Interest-Bearing Deposits
Demand			-				(0.2	)			(0.2	)
Savings			0.5				4.5				5.0
Time			0.6				1.8				2.4
Total Interest-Bearing Deposits			1.1				6.1				7.2
Securities Sold Under Agreements to Repurchase			0.1				(0.5	)			(0.4	)
Other Debt			(0.5	)			0.4				(0.1	)
Total Change in Interest Expense			0.7				6.0				6.7
Change in Net Interest Income		$	3.2			$	(2.2	)		$	1.0

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

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8c
		Nine Months Ended September 30, 2019
		Compared to September 30, 2018
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	(1.0	)		$	0.8			$	(0.2	)
Investment Securities
Available-for-Sale
Taxable			10.4				5.0				15.4
Non-Taxable			(11.5	)			3.2				(8.3	)
Held-to-Maturity
Taxable			(5.3	)			6.8				1.5
Non-Taxable			(1.7	)			(0.1	)			(1.8	)
Total Investment Securities			(8.1	)			14.9				6.8
Loans Held for Sale			0.1				-				0.1
Loans and Leases
Commercial and Industrial			2.6				4.4				7.0
Commercial Mortgage			7.6				3.8				11.4
Construction			(2.0	)			0.7				(1.3	)
Commercial Lease Financing			(0.3	)			0.3				-
Residential Mortgage			6.3				0.8				7.1
Home Equity			2.3				0.7				3.0
Automobile			3.2				(1.7	)			1.5
Other 2			0.3				(2.4	)			(2.1	)
Total Loans and Leases			20.0				6.6				26.6
Other			(0.1	)			(0.1	)			(0.2	)
Total Change in Interest Income			10.9				22.2				33.1
Change in Interest Expense:
Interest-Bearing Deposits
Demand			-				0.8				0.8
Savings			1.0				14.3				15.3
Time			1.0				6.9				7.9
Total Interest-Bearing Deposits			2.0				22.0				24.0
Short-Term Borrowings			0.5				0.2				0.7
Securities Sold Under Agreements to Repurchase			0.1				(0.6	)			(0.5	)
Other Debt			(1.8	)			1.3				(0.5	)
Total Change in Interest Expense			0.8				22.9				23.7
Change in Net Interest Income		$	10.1			$	(0.7	)		$	9.4

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											Nine Months Ended
		September 30,			June 30,			September 30,					September 30,
(dollars in thousands)		2019			2019			2018					2019			2018
Salaries		$	33,458		$	32,834		$	33,308				$	98,772		$	99,281
Incentive Compensation			5,681			5,464			5,378					17,049			14,972
Share-Based Compensation			2,025			1,994			2,153					7,098			6,657
Commission Expense			1,760			1,704			1,034					4,394			3,260
Retirement and Other Benefits			4,185			4,580			3,925					13,872			12,944
Payroll Taxes			2,519			2,643			2,372					9,409			9,112
Medical, Dental, and Life Insurance			3,908			3,926			3,616					12,299			10,897
Separation Expense			809			366			(4	)				1,549			1,229
Total Salaries and Benefits		$	54,345		$	53,511		$	51,782				$	164,442		$	158,352

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances														Table 10
		September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)			2019			2019			2019			2018			2018
Commercial
Commercial and Industrial		$	1,361,011		$	1,408,729		$	1,331,345		$	1,331,149		$	1,314,609
Commercial Mortgage			2,477,296			2,411,289			2,381,213			2,302,356			2,237,020
Construction			154,754			119,228			132,775			170,061			176,447
Lease Financing			163,672			163,070			154,919			176,226			172,232
Total Commercial			4,156,733			4,102,316			4,000,252			3,979,792			3,900,308
Consumer
Residential Mortgage			3,846,511			3,785,006			3,702,553			3,673,796			3,596,627
Home Equity			1,681,951			1,694,577			1,698,666			1,681,442			1,625,208
Automobile			713,424			703,523			676,730			658,133			625,086
Other 1			482,679			473,707			470,408			455,611			483,833
Total Consumer			6,724,565			6,656,813			6,548,357			6,468,982			6,330,754
Total Loans and Leases		$	10,881,298		$	10,759,129		$	10,548,609		$	10,448,774		$	10,231,062
Deposits
		September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)			2019			2019			2019			2018			2018
Consumer		$	7,893,454		$	7,880,284		$	7,944,793		$	7,726,731		$	7,627,527
Commercial			6,153,492			6,178,984			6,162,042			6,098,186			5,967,343
Public and Other			1,293,806			1,429,553			1,160,475			1,202,325			1,248,465
Total Deposits		$	15,340,752		$	15,488,821		$	15,267,310		$	15,027,242		$	14,843,335

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
		September 30,				June 30,				March 31,				December 31,				September 30,
(dollars in thousands)			2019				2019				2019				2018				2018
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial		$	573			$	552			$	393			$	542			$	1,205
Commercial Mortgage			11,088				11,310				5,911				2,040				652
Total Commercial			11,661				11,862				6,304				2,582				1,857
Consumer
Residential Mortgage			4,258				4,697				5,599				5,321				6,359
Home Equity			2,787				2,486				2,797				3,671				3,673
Total Consumer			7,045				7,183				8,396				8,992				10,032
Total Non-Accrual Loans and Leases			18,706				19,045				14,700				11,574				11,889
Foreclosed Real Estate			2,939				2,737				3,225				1,356				1,909
Total Non-Performing Assets		$	21,645			$	21,782			$	17,925			$	12,930			$	13,798
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial		$	81			$	-			$	66			$	10			$	-
Total Commercial			81				-				66				10				-
Consumer
Residential Mortgage			2,032				1,859				903				2,446				2,426
Home Equity			2,320				2,981				3,381				2,684				3,112
Automobile			582				607				734				513				829
Other 1			1,076				963				1,033				914				1,727
Total Consumer			6,010				6,410				6,051				6,557				8,094
Total Accruing Loans and Leases Past Due 90 Days or More		$	6,091			$	6,410			$	6,117			$	6,567			$	8,094
Restructured Loans on Accrual Status and Not Past Due 90 Days or More		$	46,178			$	48,563			$	48,571			$	48,731			$	49,462
Total Loans and Leases		$	10,881,298			$	10,759,129			$	10,548,609			$	10,448,774			$	10,231,062
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.17	%			0.18	%			0.14	%			0.11	%			0.12	%
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate			0.20	%			0.20	%			0.17	%			0.12	%			0.13	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate			0.28	%			0.29	%			0.16	%			0.06	%			0.05	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate			0.15	%			0.15	%			0.18	%			0.16	%			0.19	%
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			0.25	%			0.26	%			0.23	%			0.19	%			0.21	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter		$	21,782			$	17,925			$	12,930			$	13,798			$	15,157
Additions			1,035				6,186				8,217				4,509				2,030
Reductions
Payments			(984	)			(441	)			(989	)			(3,759	)			(415	)
Return to Accrual Status			-				(1,344	)			(316	)			(605	)			(1,420	)
Sales of Foreclosed Real Estate			-				(374	)			-				(653	)			(1,301	)
Charge-offs/Write-downs			(188	)			(170	)			(1,917	)			(360	)			(253	)
Total Reductions			(1,172	)			(2,329	)			(3,222	)			(5,377	)			(3,389	)
Balance at End of Quarter		$	21,645			$	21,782			$	17,925			$	12,930			$	13,798

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													Nine Months Ended
		September 30,				June 30,				September 30,					September 30,
(dollars in thousands)			2019				2019				2018					2019				2018
Balance at Beginning of Period		$	114,494			$	112,845			$	115,010				$	113,515				114,168
Loans and Leases Charged-Off
Commercial
Commercial and Industrial			(239	)			(206	)			(449	)				(815	)			(1,140	)
Commercial Mortgage			-				-				-					(1,616	)			-
Consumer
Residential Mortgage			(7	)			(51	)			-					(62	)			(100	)
Home Equity			(215	)			(145	)			(124	)				(655	)			(259	)
Automobile			(1,696	)			(1,691	)			(2,114	)				(5,140	)			(5,883	)
Other 1			(3,598	)			(3,036	)			(3,340	)				(9,424	)			(10,294	)
Total Loans and Leases Charged-Off			(5,755	)			(5,129	)			(6,027	)				(17,712	)			(17,676	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial			318				401				542					1,220				1,236
Consumer
Residential Mortgage			649				95				261					1,228				695
Home Equity			428				746				558					1,762				1,634
Automobile			660				908				616					2,449				1,953
Other 1			714				628				752					2,046				2,077
Total Recoveries on Loans and Leases Previously Charged-Off			2,769				2,778				2,729					8,705				7,595
Net Loans and Leases Charged-Off			(2,986	)			(2,351	)			(3,298	)				(9,007	)			(10,081	)
Provision for Credit Losses			4,250				4,000				3,800					11,250				11,425
Provision for Unfunded Commitments			-				-				-					-				-
Balance at End of Period 2		$	115,758			$	114,494			$	115,512				$	115,758			$	115,512
Components
Allowance for Loan and Lease Losses		$	108,936			$	107,672			$	108,690				$	108,936				108,690
Reserve for Unfunded Commitments			6,822				6,822				6,822					6,822				6,822
Total Reserve for Credit Losses		$	115,758			$	114,494			$	115,512				$	115,758			$	115,512
Average Loans and Leases Outstanding		$	10,770,720			$	10,631,558			$	10,081,886				$	10,624,311			$	9,950,518
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)			0.11	%			0.09	%			0.13	%				0.11	%			0.14	%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding			1.00	%			1.00	%			1.06	%				1.00	%			1.06	%

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 13a
										Investment
										Services and
		Retail				Commercial				Private				Treasury				Consolidated
(dollars in thousands)		Banking				Banking				Banking				and Other				Total
Three Months Ended September 30, 2019
Net Interest Income		$	66,648			$	46,791			$	9,641			$	1,816			$	124,896
Provision for Credit Losses			3,084				(130	)			32				1,264				4,250
Net Interest Income After Provision for Credit Losses			63,564				46,921				9,609				552				120,646
Noninterest Income			22,964				8,739				13,663				1,141				46,507
Noninterest Expense			(59,358	)			(21,330	)			(15,840	)			(3,821	)			(100,349	)
Income Before Provision for Income Taxes			27,170				34,330				7,432				(2,128	)			66,804
Provision for Income Taxes			(6,547	)			(8,560	)			(1,959	)			2,314				(14,752	)
Net Income		$	20,623			$	25,770			$	5,473			$	186			$	52,052
Total Assets as of September 30, 2019		$	6,668,902			$	4,145,717			$	324,388			$	6,533,133			$	17,672,140
Three Months Ended September 30, 2018
Net Interest Income		$	66,927			$	46,240			$	10,574			$	(814	)		$	122,927
Provision for Credit Losses			3,229				69				-				502				3,800
Net Interest Income After Provision for Credit Losses			63,698				46,171				10,574				(1,316	)			119,127
Noninterest Income			19,814				6,241				13,526				1,901				41,482
Noninterest Expense			(51,806	)			(20,242	)			(15,657	)			(2,833	)			(90,538	)
Income Before Provision for Income Taxes			31,706				32,170				8,443				(2,248	)			70,071
Provision for Income Taxes			(7,943	)			(7,218	)			(2,226	)			4,249				(13,138	)
Net Income		$	23,763			$	24,952			$	6,217			$	2,001			$	56,933
Total Assets as of September 30, 2018		$	6,246,126			$	3,873,454			$	340,793			$	6,531,361			$	16,991,734

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information																		Table 13b
										Investment
										Services and
		Retail				Commercial				Private				Treasury				Consolidated
(dollars in thousands)		Banking				Banking				Banking				and Other				Total
Nine Months Ended September 30, 2019
Net Interest Income		$	200,019			$	139,784			$	29,685			$	4,342			$	373,830
Provision for Credit Losses			7,852				1,141				14				2,243				11,250
Net Interest Income After Provision for Credit Losses			192,167				138,643				29,671				2,099				362,580
Noninterest Income			65,305				22,738				41,767				5,826				135,636
Noninterest Expense			(163,968	)			(63,545	)			(49,200	)			(9,418	)			(286,131	)
Income Before Provision for Income Taxes			93,504				97,836				22,238				(1,493	)			212,085
Provision for Income Taxes			(22,883	)			(22,507	)			(5,862	)			6,937				(44,315	)
Net Income		$	70,621			$	75,329			$	16,376			$	5,444			$	167,770
Total Assets as of September 30, 2019		$	6,668,902			$	4,145,717			$	324,388			$	6,533,133			$	17,672,140
Nine Months Ended September 30, 2018
Net Interest Income		$	197,007			$	133,148			$	30,987			$	1,237			$	362,379
Provision for Credit Losses			10,417				(276	)			(60	)			1,344				11,425
Net Interest Income After Provision for Credit Losses			186,590				133,424				31,047				(107	)			350,954
Noninterest Income			58,665				17,395				41,941				8,814				126,815
Noninterest Expense			(158,344	)			(60,432	)			(48,264	)			(8,673	)			(275,713	)
Income Before Provision for Income Taxes			86,911				90,387				24,724				34				202,056
Provision for Income Taxes			(21,707	)			(20,782	)			(6,518	)			12,642				(36,365	)
Net Income		$	65,204			$	69,605			$	18,206			$	12,676			$	165,691
Total Assets as of September 30, 2018		$	6,246,126			$	3,873,454			$	340,793			$	6,531,361			$	16,991,734

Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data																						Table 14
		Three Months Ended
		September 30,					June 30,					March 31,					December 31,					September 30,
(dollars in thousands, except per share amounts)		2019					2019					2019					2018					2018
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases		$	110,877				$	110,401				$	108,511				$	107,404				$	104,248
Income on Investment Securities
Available-for-Sale			17,512					15,072					13,432					13,043					12,588
Held-to-Maturity			18,796					22,149					21,921					21,482					20,821
Deposits			9					9					15					10					10
Funds Sold			656					730					1,444					727					1,393
Other			233					210					319					352					364
Total Interest Income			148,083					148,571					145,642					143,018					139,424
Interest Expense
Deposits			18,055					18,628					15,284					13,172					10,931
Securities Sold Under Agreements to Repurchase			4,257					4,623					4,571					4,671					4,667
Funds Purchased			146					512					157					440					33
Short-Term Borrowings			1					1					36					88					28
Other Debt			728					710					757					674					838
Total Interest Expense			23,187					24,474					20,805					19,045					16,497
Net Interest Income			124,896					124,097					124,837					123,973					122,927
Provision for Credit Losses			4,250					4,000					3,000					2,000					3,800
Net Interest Income After Provision for Credit Losses			120,646					120,097					121,837					121,973					119,127
Noninterest Income
Trust and Asset Management			10,930					11,385					10,761					10,558					10,782
Mortgage Banking			4,864					3,336					2,287					2,148					1,965
Service Charges on Deposit Accounts			7,592					7,283					7,364					7,562					7,255
Fees, Exchange, and Other Service Charges			14,900					14,252					14,208					14,576					14,173
Investment Securities Gains (Losses), Net			(1,469	)				(776	)				(835	)				(841	)				(729	)
Annuity and Insurance			1,278					1,806					2,578					1,409					1,360
Bank-Owned Life Insurance			1,647					1,779					1,710					1,941					1,620
Other			6,765					6,385					5,606					4,755					5,056
Total Noninterest Income			46,507					45,450					43,679					42,108					41,482
Noninterest Expense
Salaries and Benefits			54,345					53,511					56,586					54,856					51,782
Net Occupancy			8,803					8,579					7,594					8,918					8,702
Net Equipment			7,637					6,895					6,833					6,364					6,116
Data Processing			4,676					4,727					4,526					5,151					4,241
Professional Fees			2,184					2,177					2,453					2,467					2,206
FDIC Insurance			1,257					1,290					1,269					1,336					2,057
Other			21,447					15,546					13,796					16,819					15,434
Total Noninterest Expense			100,349					92,725					93,057					95,911					90,538
Income Before Provision for Income Taxes			66,804					72,822					72,459					68,170					70,071
Provision for Income Taxes			14,752					15,903					13,660					14,259					13,138
Net Income		$	52,052				$	56,919				$	58,799				$	53,911				$	56,933
Basic Earnings Per Share		$	1.30				$	1.40				$	1.44				$	1.30				$	1.37
Diluted Earnings Per Share		$	1.29				$	1.40				$	1.43				$	1.30				$	1.36
Balance Sheet Totals
Loans and Leases		$	10,881,298				$	10,759,129				$	10,548,609				$	10,448,774				$	10,231,062
Total Assets			17,672,140					17,688,845					17,446,413					17,143,974					16,991,734
Total Deposits			15,340,752					15,488,821					15,267,310					15,027,242					14,843,335
Total Shareholders' Equity			1,291,490					1,285,948					1,269,690					1,268,200					1,253,327
Performance Ratios
Return on Average Assets			1.17		%			1.31		%			1.38		%			1.26		%			1.33		%
Return on Average Shareholders' Equity			16.02					17.97					18.81					17.05					18.06
Efficiency Ratio 1			58.55					54.69					55.22					57.75					55.07
Net Interest Margin 2			3.01					3.04					3.12					3.10					3.07

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
		Eight Months Ended						Year Ended
($ in millions; jobs in thousands)		August 31, 2019						December 31, 2018									December 31, 2017
Hawaii Economic Trends
State General Fund Revenues 1		$	4,972.8		6.3	%		$	6,933.1				6.9		%		$	6,485.0			4.3	%
General Excise and Use Tax Revenue 1		$	2,442.7		6.3	%		$	3,426.5				2.3		%		$	3,349.8			4.5	%
Jobs 2			643.1						660.0									664.5
													September 30,				December 31,
(spot rates)													2019				2018				2017
Unemployment 3
Statewide, seasonally adjusted													2.7		%			2.5	%		2.1	%
Oahu													2.6					2.2			1.7
Island of Hawaii													3.5					2.9			2.0
Maui													2.7					2.3			1.8
Kauai													2.7					2.3			1.7
								September 30,					December 31,
(percentage change, except months of inventory)								2019					2018				2017				2016
Housing Trends (Single Family Oahu) 4
Median Home Price									(0.5	)	%		4.6		%			2.7	%		5.0	%
Home Sales Volume (units)									0.8		%		(7.7	)	%			6.3	%		6.5	%
Months of Inventory									3.5				2.8					2.1			2.5
								Monthly Visitor Arrivals,									Percentage Change
(in thousands)								Not Seasonally Adjusted									from Previous Year
Tourism 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													782.6								0.5
January 31, 2019													820.6								3.0
December 31, 2018													910.1								3.4
November 30, 2018													782.0								4.3
October 31, 2018													770.4								4.4
September 30, 2018													724.9								3.5
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
December 31, 2017													879.7								6.2
November 30, 2017													749.5								7.5
October 31, 2017													737.6								2.9
September 30, 2017													700.5								4.9
August 31, 2017													818.6								4.8
July 31, 2017													891.9								6.8
June 30, 2017													835.9								4.5
May 31, 2017													751.2								4.5
April 30, 2017													753.0								7.5
March 31, 2017													802.8								2.1
February 28, 2017													706.1								2.5
January 31, 2017													756.0								4.9

1 Source: Hawaii Department of Business, Economic Development & Tourism

2 Source: U. S. Bureau of Labor Statistics

3 Source: Hawaii Department of Labor and Industrial Relations, County jobs data not seasonally adjusted.

4 Source: Honolulu Board of REALTORS

5 Source: Hawaii Tourism Authority

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20191028005194/en/

Source: Bank of Hawaii Corporation

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