EX-99 2 boh-ex99_1.htm EX-99.1

Exhibit 99.1

Bank of Hawai‘i Corporation First Quarter 2023 Financial Results

•
Average Deposits Up 0.4% Linked Quarter
•
Diluted Earnings Per Common Share $1.14
•
Net Income $46.8 Million
•
Board of Directors Declares Dividend of $0.70 Per Common Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (April 24, 2023) -- Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $1.14 for the first quarter of 2023, compared with diluted earnings per common share of $1.50 in the previous quarter and $1.32 in the same quarter of 2022. Net income for the first quarter of 2023 was $46.8 million, down 23.6% from the previous quarter and down 14.6% from the same quarter of 2022. The return on average common equity for the first quarter of 2023 was 15.79% compared with 21.28% in the previous quarter and 15.44% in the same quarter of 2022.

“Amidst a challenging macro environmental backdrop, Bank of Hawai‘i delivered solid operating performance in the first quarter of 2023," said Peter Ho, Chairman, President, and CEO. “Average deposits grew 0.4% in the first quarter and were essentially flat from a year ago. Spot deposit balances were down 0.6% from the prior quarter and down 1.1% from the prior year. Deposit costs, while rising, continue to show the benefits of our unique Hawai‘i deposit base which is diversified and long tenured. Loans grew 1.3% on a linked quarter basis with growth across both our consumer and commercial portfolios. Credit quality remains excellent. Non-performing assets were lower on both a linked quarter and year on year basis. Annualized net charge-offs were 0.08% during the quarter.”

Financial Highlights

Net interest income for the first quarter of 2023 was $136.0 million, a decrease of 3.4% from the previous quarter and an increase of 8.5% from the same quarter of 2022. The decrease in net interest income in the first quarter of 2023 compared to the prior quarter was due to two fewer days in the quarter, which reduced net interest income by approximately $1.6 million, as well as higher funding costs, partially offset by loan growth and higher earning asset yields. The increase in net interest income compared to the same period in 2022 was primarily due to loan growth and higher earning asset yields, partially offset by higher funding costs.

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Bank of Hawai‘i Corporation First Quarter 2023 Financial Results Page 2

Net interest margin was 2.47% in the first quarter of 2023, a decrease of 13 basis points from the previous quarter and an increase of 13 basis points from the same quarter of 2022. The decrease in net interest margin in the first quarter of 2023 compared to the prior quarter was due to higher funding costs, partially offset by higher earning asset yields. The increase in net interest margin from the same period in 2022 was primarily due to higher earning asset yields, partially offset by higher funding costs.

The average yield on loans and leases was 4.03% in the first quarter of 2023, up 22 basis points from the prior quarter and up 93 basis points from the same quarter of 2022. The average yield on total earning assets was 3.42% in the first quarter of 2023, up 25 basis points from the prior quarter and up 98 basis points from the same quarter of 2022. The average cost of interest-bearing deposits was 1.09% in the first quarter of 2023, up 40 basis points from the prior quarter and up 102 basis points from the same quarter of 2022. The average cost of total deposits, including noninterest-bearing deposits, was 0.75%, up 29 basis points from the prior quarter and up 70 basis points from the same quarter of 2022. The changes in yields and rates over the linked quarter and year over year period reflected the higher rate environment, including higher benchmark interest rates.

Noninterest income was $40.7 million in the first quarter of 2023, a decrease of 1.1% from the previous quarter and a decrease of 6.5% from the same period in 2022. Noninterest income in the first quarter of 2023 included a negative adjustment of $0.6 million related to a change in the Visa Class B conversion ratio. Adjusted for this item, noninterest income in the first quarter was $41.3 million, up 0.3% from the prior quarter and down 5.2% from the same period in 2022. The decrease in noninterest income compared to the same period in 2022 was due to lower customer swap transactions and lower mortgage banking income.

Noninterest expense was $111.9 million in the first quarter of 2023, an increase of 9.0% from the previous quarter and an increase of 7.7% from the same quarter of 2022. Noninterest expense in the first quarters 2022 and 2023 included seasonal payroll expenses of approximately $3.7 million and approximately $4.0 million, respectively. In addition, noninterest expense in the first quarter of 2023 included separation expenses of $3.1 million. Adjusted for these items, noninterest expense for the first quarter of 2023 was $104.9 million, an increase of 2.1% from the prior quarter and 4.7% from adjusted noninterest expense in same period in 2022. The linked quarter increase was primarily due to an industry-wide increase in FDIC insurance expense of $1.5 million. The increase from the same period in 2022, adjusting for nonrecurring items in both periods, was primarily due to higher salaries and benefits expense of $1.8 million, higher software license fees of $0.9 million and higher FDIC insurance expense of $1.7 million.

The effective tax rate for the first quarter of 2023 was 25.38% compared with 22.40% in the previous quarter and 22.15% during the same quarter of 2022. The increase in the effective tax rate on a linked quarter basis was due to a non-recurring benefit from the leveraged lease terminations received in the fourth quarter and an unfavorable discrete tax item in the first quarter. The year over year increase was primarily due to lower benefits from tax credit investments. The effective tax rate in the first quarter of 2022 also included benefits from leveraged leases that have since been terminated.

Asset Quality

The Company’s overall asset quality remained strong during the first quarter of 2023. Provision for credit losses for the first quarter of 2023 was $2.0 million compared with $0.2 million in the previous quarter and a net benefit of $5.5 million in the same quarter of 2022.

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Bank of Hawai‘i Corporation First Quarter 2023 Financial Results Page 3

Total non-performing assets were $12.1 million at March 31, 2023, down $0.5 million from December 31, 2022 and down $7.9 million from March 31, 2022. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.09% at the end of the quarter, flat from the end of the prior quarter and a decrease of 7 basis points from the same quarter of 2022.

Net loan and lease charge-offs during the first quarter of 2023 were $2.7 million or 0.08% annualized of total average loans and leases outstanding. Net loan and lease charge-offs for the first quarter of 2023 were comprised of charge-offs of $4.3 million partially offset by recoveries of $1.6 million. Compared to the prior quarter, net loan and lease charge-offs increased by $0.8 million or 3 basis points annualized on total average loans and leases outstanding. Compared to the same quarter of 2022, net loan and lease charge-offs increased by $1.2 million or 3 basis points annualized on total average loans and leases outstanding.

The allowance for credit losses on loans and leases was $143.6 million at March 31, 2023, a decrease of $0.9 million from December 31, 2022 and a decrease of $8.5 million from March 31, 2022. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.04% at the end of the quarter, down 2 basis points from the end of the prior quarter and down 17 basis points from the end of the same quarter of 2022.

Balance Sheet

Total assets were $23.9 billion at March 31, 2023, an increase of 1.4% from December 31, 2022 and an increase of 4.1% from March 31, 2022, primarily due to growth in our earning assets.

The investment securities portfolio was $8.1 billion at March 31, 2023, a decrease of 1.6% from December 31, 2022 and a decrease of 7.1% from March 31, 2022. These decreases were due to cashflows from the portfolio exceeding the pace of reinvestment. Period end unrealized losses on securities decreased by $120.7 million from the prior quarter end. The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.

Total loans and leases were $13.8 billion at March 31, 2023, an increase of 1.3% from December 31, 2022 and an increase of 10.2% from March 31, 2022. Total commercial loans were $5.6 billion at March 31, 2023, an increase of 1.9% from the prior quarter and an increase of 10.9% from the same quarter of 2022, primarily due to an increase in our commercial mortgage portfolio. Total consumer loans were $8.3 billion as of March 31, 2023, an increase of 0.9% from the prior quarter and 9.7% from the same period in 2022, primarily driven by increases in our residential mortgage and home equity portfolios.

Total deposits were $20.5 billion at March 31, 2023, a decrease of 0.6% from December 31, 2022 and a decrease of 1.1% from March 31, 2022. Noninterest bearing deposits made up 31% of total deposit balances as of March 31, 2023, down from 33% as of December 31, 2022 and 36% as of March 31, 2022. Average deposits were $20.4 billion for the first quarter of 2023, up 0.4% from $20.3 billion in the prior quarter, and essentially unchanged from the first quarter of 2022. As of March 31, 2023 insured and collateralized deposits represent 58% of total deposit balances, up from 57% as of December 31, 2022 and 56% as of March 31, 2022.

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Bank of Hawai‘i Corporation First Quarter 2023 Financial Results Page 4

Capital and Dividends

The Company’s capital levels remain well within regulatory well-capitalized guidelines.

The Tier 1 Capital Ratio was 12.10% at March 31, 2023 compared with 12.15% at December 31, 2022 and 13.22% at March 31, 2022. The Tier 1 Leverage Ratio was 7.19% at March 31, 2023 compared with 7.37% at December 31, 2022 and 7.30% at March 31, 2022. The decline in the Tier 1 Capital Ratio was due to an increase in risk-weighted assets and the decline in the Tier 1 Leverage Ratio was due to an increase in average total assets, both as a result of loan growth over the period.

The Company repurchased 150.0 thousand shares of common stock at a total cost of $9.9 million under its share repurchase program in the first quarter of 2023. Total remaining buyback authority under the share repurchase program was $126.0 million at March 31, 2023.

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 June 14, 2023 to shareholders of record at the close of business on May 31, 2023.

On April 4, 2023, the Board of Directors declared the quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, on its preferred stock. 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 May 1, 2023 to shareholders of record of the preferred stock as of April 14, 2023.

Conference Call Information

The Company will review its first 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 Hawai‘i Corporation's website, www.boh.com. The webcast can be accessed via the link below: https://register.vevent.com/register/BIf628c91a80f642cb96f2725eff121a04. A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawaii Time on Monday, April 24, 2023. The replay will be accessible via the same link. In addition, the replay will be available on the Company's website, www.boh.com.

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Bank of Hawai‘i Corporation First Quarter 2023 Financial Results Page 5

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 Hawai‘i Corporation's Annual Report on Form 10-K for the year ended December 31, 2022 which was 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 Hawai‘i 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 Hawai‘i, was founded in 1897. For more information about Bank of Hawai‘i Corporation, see the Company’s web site, www.boh.com. Bank of Hawai‘i Corporation is a trade name of Bank of Hawaii Corporation

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Bank of Hawai‘i Corporation and Subsidiaries |  |
Financial Highlights |  |  |  |  |  |  | Table 1
| Three Months Ended |  |
| March 31, |  |  | December 31, |  |  | March 31, |  |
(dollars in thousands, except per share amounts) | 2023 |  |  | 2022 |  |  | 2022 |  |
For the Period: |  |  |  |  |  |  |  |  |
Operating Results |  |  |  |  |  |  |  |  |
Net Interest Income | $ | 135,955 |  |  | $ | 140,738 |  |  | $ | 125,263 |  |
Provision for Credit Losses |  | 2,000 |  |  |  | 200 |  |  |  | (5,500 | ) |
Total Noninterest Income |  | 40,737 |  |  |  | 41,172 |  |  |  | 43,551 |  |
Total Noninterest Expense |  | 111,919 |  |  |  | 102,703 |  |  |  | 103,874 |  |
Pre-Provision Net Revenue |  | 64,773 |  |  |  | 79,207 |  |  |  | 64,940 |  |
Net Income |  | 46,842 |  |  |  | 61,307 |  |  |  | 54,834 |  |
Net Income Available to Common Shareholders |  | 44,873 |  |  |  | 59,338 |  |  |  | 52,865 |  |
Basic Earnings Per Common Share |  | 1.14 |  |  |  | 1.51 |  |  |  | 1.33 |  |
Diluted Earnings Per Common Share |  | 1.14 |  |  |  | 1.50 |  |  |  | 1.32 |  |
Dividends Declared Per Common Share |  | 0.70 |  |  |  | 0.70 |  |  |  | 0.70 |  |
Performance Ratios |  |  |  |  |  |  |  |  |
Return on Average Assets |  | 0.80 |  | % |  | 1.05 |  | % |  | 0.97 |  | %
Return on Average Shareholders' Equity |  | 14.25 |  |  |  | 18.91 |  |  |  | 14.18 |  |
Return on Average Common Equity |  | 15.79 |  |  |  | 21.28 |  |  |  | 15.44 |  |
Efficiency Ratio 1 |  | 63.34 |  |  |  | 56.46 |  |  |  | 61.53 |  |
Net Interest Margin 2 |  | 2.47 |  |  |  | 2.60 |  |  |  | 2.34 |  |
Dividend Payout Ratio 3 |  | 61.40 |  |  |  | 46.36 |  |  |  | 52.63 |  |
Average Shareholders' Equity to Average Assets |  | 5.59 |  |  |  | 5.56 |  |  |  | 6.87 |  |
Average Balances |  |  |  |  |  |  |  |  |
Average Loans and Leases | $ | 13,717,483 |  |  | $ | 13,452,791 |  |  | $ | 12,290,402 |  |
Average Assets |  | 23,865,478 |  |  |  | 23,147,398 |  |  |  | 22,847,488 |  |
Average Deposits |  | 20,430,882 |  |  |  | 20,341,327 |  |  |  | 20,426,076 |  |
Average Shareholders' Equity |  | 1,332,889 |  |  |  | 1,286,291 |  |  |  | 1,568,725 |  |
Per Share of Common Stock |  |  |  |  |  |  |  |  |
Book Value | $ | 29.62 |  |  | $ | 28.54 |  |  | $ | 31.50 |  |
Tangible Book Value |  | 28.83 |  |  |  | 27.75 |  |  |  | 30.71 |  |
Market Value |  |  |  |  |  |  |  |  |
Closing |  | 52.08 |  |  |  | 77.56 |  |  |  | 83.92 |  |
High |  | 81.73 |  |  |  | 82.87 |  |  |  | 92.38 |  |
Low |  | 34.71 |  |  |  | 70.15 |  |  |  | 79.60 |  |
| March 31, |  |  | December 31, |  |  | March 31, |  |
| 2023 |  |  | 2022 |  |  | 2022 |  |
As of Period End: |  |  |  |  |  |  |  |  |
Balance Sheet Totals |  |  |  |  |  |  |  |  |
Loans and Leases | $ | 13,824,522 |  |  | $ | 13,646,420 |  |  | $ | 12,544,492 |  |
Total Assets |  | 23,931,977 |  |  |  | 23,606,877 |  |  |  | 23,000,317 |  |
Total Deposits |  | 20,491,300 |  |  |  | 20,615,696 |  |  |  | 20,716,287 |  |
Other Debt |  | 510,269 |  |  |  | 410,294 |  |  |  | 10,367 |  |
Total Shareholders' Equity |  | 1,354,430 |  |  |  | 1,316,995 |  |  |  | 1,448,885 |  |
Asset Quality |  |  |  |  |  |  |  |  |
Non-Performing Assets | $ | 12,124 |  |  | $ | 12,647 |  |  | $ | 19,979 |  |
Allowance for Credit Losses - Loans and Leases |  | 143,577 |  |  |  | 144,439 |  |  |  | 152,028 |  |
Allowance to Loans and Leases Outstanding 4 |  | 1.04 |  | % |  | 1.06 |  | % |  | 1.21 |  | %
Capital Ratios 5 |  |  |  |  |  |  |  |  |
Common Equity Tier 1 Capital Ratio |  | 10.88 |  | % |  | 10.92 |  | % |  | 11.83 |  | %
Tier 1 Capital Ratio |  | 12.10 |  |  |  | 12.15 |  |  |  | 13.22 |  |
Total Capital Ratio |  | 13.13 |  |  |  | 13.17 |  |  |  | 14.41 |  |
Tier 1 Leverage Ratio |  | 7.19 |  |  |  | 7.37 |  |  |  | 7.30 |  |
Total Shareholders' Equity to Total Assets |  | 5.66 |  |  |  | 5.58 |  |  |  | 6.30 |  |
Tangible Common Equity to Tangible Assets 6 |  | 4.78 |  |  |  | 4.69 |  |  |  | 5.39 |  |
Tangible Common Equity to Risk-Weighted Assets 6 |  | 7.97 |  |  |  | 7.76 |  |  |  | 9.77 |  |
Non-Financial Data |  |  |  |  |  |  |  |  |
Full-Time Equivalent Employees |  | 2,025 |  |  |  | 2,076 |  |  |  | 2,084 |  |
Branches |  | 51 |  |  |  | 51 |  |  |  | 54 |  |
ATMs |  | 320 |  |  |  | 320 |  |  |  | 307 |  |
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 March 31, 2023 are preliminary.
6 Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures.
Tangible common equity is defined by the Company as common shareholders' equity minus goodwill.
See Table 2 "Reconciliation of Non-GAAP Financial Measures".

Bank of Hawai‘i Corporation and Subsidiaries |  |  |
Reconciliation of Non-GAAP Financial Measures |  | Table 2 |
|  |  | March 31, |  | December 31, |  | March 31, |
(dollars in thousands) |  |  | 2023 |  | 2022 |  | 2022 |
Total Shareholders' Equity | $ | 1,354,430 |  | $ | 1,316,995 |  | $ | 1,448,885 |
Less: Preferred Stock |  | 180,000 |  |  | 180,000 |  |  | 180,000 |
Goodwill |  |  |  | 31,517 |  |  | 31,517 |  |  | 31,517 |
Tangible Common Equity | $ | 1,142,913 |  | $ | 1,105,478 |  | $ | 1,237,368 |
Total Assets |  | 23,931,977 |  |  | 23,606,877 |  |  | 23,000,317 |
Less: Goodwill |  | 31,517 |  |  | 31,517 |  |  | 31,517 |
Tangible Assets | $ | 23,900,460 |  | $ | 23,575,360 |  | $ | 22,968,800 |
Risk-Weighted Assets, determined in accordance |  |  |  |  |  |
with prescribed regulatory requirements 1 | $ | 14,341,397 |  | $ | 14,238,798 |  | $ | 12,663,646 |
Total Shareholders' Equity to Total Assets |  | 5.66 | % |  | 5.58 | % |  | 6.30 | %
Tangible Common Equity to Tangible Assets (Non-GAAP) |  | 4.78 | % |  | 4.69 | % |  | 5.39 | %
Tier 1 Capital Ratio 1 |  | 12.10 | % |  | 12.15 | % |  | 13.22 | %
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1 |  | 7.97 | % |  | 7.76 | % |  | 9.77 | %
1 Regulatory capital ratios as of March 31, 2023 are preliminary. |

Bank of Hawai‘i Corporation and Subsidiaries |
Consolidated Statements of Income |  | Table 3 |
| Three Months Ended |
| March 31, |  | December 31, |  | March 31, |
(dollars in thousands, except per share amounts) | 2023 |  | 2022 |  | 2022 |
Interest Income |  |  |  |  |  |
Interest and Fees on Loans and Leases | $ | 136,501 |  | $ | 128,683 |  | $ | 94,439 |
Income on Investment Securities |  |  |  |  |  |
Available-for-Sale |  | 23,893 |  |  | 18,476 |  |  | 17,100 |
Held-to-Maturity |  | 23,948 |  |  | 23,708 |  |  | 18,701 |
Deposits |  | 27 |  |  | 13 |  |  | 4 |
Funds Sold |  | 3,366 |  |  | 1,093 |  |  | 127 |
Other |  | 597 |  |  | 340 |  |  | 202 |
Total Interest Income |  | 188,332 |  |  | 172,313 |  |  | 130,573 |
Interest Expense |  |  |  |  |  |
Deposits |  | 37,794 |  |  | 23,494 |  |  | 2,353 |
Securities Sold Under Agreements to Repurchase |  | 5,377 |  |  | 4,289 |  |  | 2,772 |
Funds Purchased |  | 704 |  |  | 318 |  |  | 2 |
Short-Term Borrowings |  | 3,203 |  |  | 1,978 |  |  | - |
Other Debt |  | 5,299 |  |  | 1,496 |  |  | 183 |
Total Interest Expense |  | 52,377 |  |  | 31,575 |  |  | 5,310 |
Net Interest Income |  | 135,955 |  |  | 140,738 |  |  | 125,263 |
Provision for Credit Losses |  | 2,000 |  |  | 200 |  |  | (5,500 | )
Net Interest Income After Provision for Credit Losses |  | 133,955 |  |  | 140,538 |  |  | 130,763 |
Noninterest Income |  |  |  |  |  |
Trust and Asset Management |  | 10,690 |  |  | 10,652 |  |  | 11,276 |
Mortgage Banking |  | 1,004 |  |  | 991 |  |  | 2,740 |
Service Charges on Deposit Accounts |  | 7,737 |  |  | 7,513 |  |  | 7,272 |
Fees, Exchange, and Other Service Charges |  | 13,808 |  |  | 13,906 |  |  | 12,952 |
Investment Securities Losses, Net |  | (1,792 | ) |  | (1,124 | ) |  | (1,545 | )
Annuity and Insurance |  | 1,271 |  |  | 1,087 |  |  | 791 |
Bank-Owned Life Insurance |  | 2,842 |  |  | 2,475 |  |  | 2,349 |
Other |  | 5,177 |  |  | 5,672 |  |  | 7,716 |
Total Noninterest Income |  | 40,737 |  |  | 41,172 |  |  | 43,551 |
Noninterest Expense |  |  |  |  |  |
Salaries and Benefits |  | 65,088 |  |  | 57,639 |  |  | 59,924 |
Net Occupancy |  | 9,872 |  |  | 9,499 |  |  | 9,826 |
Net Equipment |  | 10,375 |  |  | 9,942 |  |  | 9,153 |
Data Processing |  | 4,583 |  |  | 4,579 |  |  | 4,560 |
Professional Fees |  | 3,883 |  |  | 3,958 |  |  | 3,258 |
FDIC Insurance |  | 3,234 |  |  | 1,774 |  |  | 1,502 |
Other |  | 14,884 |  |  | 15,312 |  |  | 15,651 |
Total Noninterest Expense |  | 111,919 |  |  | 102,703 |  |  | 103,874 |
Income Before Provision for Income Taxes |  | 62,773 |  |  | 79,007 |  |  | 70,440 |
Provision for Income Taxes |  | 15,931 |  |  | 17,700 |  |  | 15,606 |
Net Income | $ | 46,842 |  | $ | 61,307 |  | $ | 54,834 |
Preferred Stock Dividends |  | 1,969 |  |  | 1,969 |  |  | 1,969 |
Net Income Available to Common Shareholders | $ | 44,873 |  | $ | 59,338 |  | $ | 52,865 |
Basic Earnings Per Common Share | $ | 1.14 |  | $ | 1.51 |  | $ | 1.33 |
Diluted Earnings Per Common Share | $ | 1.14 |  | $ | 1.50 |  | $ | 1.32 |
Dividends Declared Per Common Share | $ | 0.70 |  | $ | 0.70 |  | $ | 0.70 |
Basic Weighted Average Common Shares |  | 39,276,833 |  |  | 39,395,338 |  |  | 39,752,679 |
Diluted Weighted Average Common Shares |  | 39,465,889 |  |  | 39,618,896 |  |  | 39,956,391 |

Bank of Hawai‘i Corporation and Subsidiaries |
Consolidated Statements of Comprehensive Income (Loss) |  |  |  |  | Table 4 |
| Three Months Ended |
| March 31, |  | December 31, |  | March 31, |
(dollars in thousands) | 2023 |  | 2022 |  | 2022 |
Net Income | $ | 46,842 |  | $ | 61,307 |  | $ | 54,834 |
Other Comprehensive Income (Loss), Net of Tax: |  |  |  |  |  |
Net Unrealized Gains (Losses) on Investment Securities |  | 29,276 |  |  | 5,677 |  |  | (180,124 | )
Defined Benefit Plans |  | 84 |  |  | 7,359 |  |  | 353 |
Other Comprehensive Income (Loss) |  | 29,360 |  |  | 13,036 |  |  | (179,771 | )
Comprehensive Income (Loss) | $ | 76,202 |  | $ | 74,343 |  | $ | (124,937 | )

Bank of Hawai‘i Corporation and Subsidiaries |  |  |
Consolidated Statements of Condition |  | Table 5 |
| March 31, |  | December 31, |  | March 31, |
(dollars in thousands) | 2023 |  | 2022 |  | 2022 |
Assets |  |  |  |  |  |
Interest-Bearing Deposits in Other Banks | $ | 2,554 |  | $ | 3,724 |  | $ | 2,488 |
Funds Sold |  | 272,018 |  |  | 81,364 |  |  | 356,373 |
Investment Securities |  |  |  |  |  |
Available-for-Sale |  | 2,815,083 |  |  | 2,844,823 |  |  | 4,258,534 |
Held-to-Maturity (Fair Value of $4,601,876; $4,615,393; and $4,171,262) |  | 5,312,815 |  |  | 5,414,139 |  |  | 4,489,615 |
Loans Held for Sale |  | 2,149 |  |  | 1,035 |  |  | 5,293 |
Loans and Leases |  | 13,824,522 |  |  | 13,646,420 |  |  | 12,544,492 |
Allowance for Credit Losses |  | (143,577 | ) |  | (144,439 | ) |  | (152,028 | )
Net Loans and Leases |  | 13,680,945 |  |  | 13,501,981 |  |  | 12,392,464 |
Total Earning Assets |  | 22,085,564 |  |  | 21,847,066 |  |  | 21,504,767 |
Cash and Due from Banks |  | 337,413 |  |  | 316,679 |  |  | 236,193 |
Premises and Equipment, Net |  | 203,131 |  |  | 206,777 |  |  | 199,743 |
Operating Lease Right-of-Use Assets |  | 91,387 |  |  | 92,307 |  |  | 93,563 |
Accrued Interest Receivable |  | 63,175 |  |  | 61,002 |  |  | 45,392 |
Foreclosed Real Estate |  | 1,040 |  |  | 1,040 |  |  | 2,332 |
Mortgage Servicing Rights |  | 22,102 |  |  | 22,619 |  |  | 23,968 |
Goodwill |  | 31,517 |  |  | 31,517 |  |  | 31,517 |
Bank-Owned Life Insurance |  | 455,602 |  |  | 453,882 |  |  | 446,926 |
Other Assets |  | 641,046 |  |  | 573,988 |  |  | 415,916 |
Total Assets | $ | 23,931,977 |  | $ | 23,606,877 |  | $ | 23,000,317 |
Liabilities |  |  |  |  |  |
Deposits |  |  |  |  |  |
Noninterest-Bearing Demand | $ | 6,385,872 |  | $ | 6,714,982 |  | $ | 7,500,741 |
Interest-Bearing Demand |  | 4,283,801 |  |  | 4,232,567 |  |  | 4,591,178 |
Savings |  | 7,898,874 |  |  | 7,962,410 |  |  | 7,701,849 |
Time |  | 1,922,753 |  |  | 1,705,737 |  |  | 922,519 |
Total Deposits |  | 20,491,300 |  |  | 20,615,696 |  |  | 20,716,287 |
Short-Term Borrowings |  | 325,000 |  |  | - |  |  | - |
Securities Sold Under Agreements to Repurchase |  | 725,490 |  |  | 725,490 |  |  | 450,490 |
Other Debt |  | 510,269 |  |  | 410,294 |  |  | 10,367 |
Operating Lease Liabilities |  | 99,746 |  |  | 100,526 |  |  | 101,274 |
Retirement Benefits Payable |  | 26,768 |  |  | 26,991 |  |  | 38,008 |
Accrued Interest Payable |  | 13,061 |  |  | 9,698 |  |  | 2,545 |
Taxes Payable |  | 11,039 |  |  | 7,104 |  |  | 17,265 |
Other Liabilities |  | 374,874 |  |  | 394,083 |  |  | 215,196 |
Total Liabilities |  | 22,577,547 |  |  | 22,289,882 |  |  | 21,551,432 |
Shareholders' Equity |  |  |  |  |  |
Preferred Stock ($.01 par value; authorized 180,000 shares; |  |  |  |  |  |
issued / outstanding: March 31, 2023; December 31, 2022; and March 31, 2022 - 180,000) |  | 180,000 |  |  | 180,000 |  |  | 180,000 |
Common Stock ($.01 par value; authorized 500,000,000 shares; |  |  |  |  |  |
issued / outstanding: March 31, 2023 - 58,722,929 / 39,646,506; |  |  |  |  |  |
December 31, 2022 - 58,733,625 / 39,835,750; and March 31, 2022 - 58,717,811 / 40,288,365) |  | 583 |  |  | 582 |  |  | 582 |
Capital Surplus |  | 624,126 |  |  | 620,578 |  |  | 607,061 |
Accumulated Other Comprehensive Loss |  | (405,298 | ) |  | (434,658 | ) |  | (246,153 | )
Retained Earnings |  | 2,074,428 |  |  | 2,055,912 |  |  | 1,974,790 |
Treasury Stock, at Cost (Shares: March 31, 2023 - 19,076,423; December 31, 2022 - 18,897,875; |  |  |  |  |  |
and March 31, 2022 - 18,429,446) |  | (1,119,409 | ) |  | (1,105,419 | ) |  | (1,067,395 | )
Total Shareholders' Equity |  | 1,354,430 |  |  | 1,316,995 |  |  | 1,448,885 |
Total Liabilities and Shareholders' Equity | $ | 23,931,977 |  | $ | 23,606,877 |  | $ | 23,000,317 |

Bank of Hawai‘i Corporation and Subsidiaries |  |  |  |  |
Consolidated Statements of Shareholders' Equity |  |  |  | Table 6 |
|  |  |  |  |  |  |  |  |  |  | Accumulated |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Other |  |  |  |  |  |  |
| Preferred |  |  |  | Common |  |  |  |  |  | Comprehensive |  |  |  |  |  |  |
| 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, 2022 |  | 180,000 |  | $ | 180,000 |  |  | 39,835,750 |  | $ | 582 |  | $ | 620,578 |  | $ | (434,658 | ) | $ | 2,055,912 |  | $ | (1,105,419 | ) | $ | 1,316,995 |
Net Income |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 46,842 |  |  | - |  |  | 46,842 |
Other Comprehensive Income |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 29,360 |  |  | - |  |  | - |  |  | 29,360 |
Share-Based Compensation |  | - |  |  | - |  |  | - |  |  | - |  |  | 3,371 |  |  | - |  |  | - |  |  | - |  |  | 3,371 |
Common Stock Issued under Purchase and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity Compensation Plans |  | - |  |  | - |  |  | 13,164 |  |  | 1 |  |  | 177 |  |  | - |  |  | 1,587 |  |  | (197 | ) |  | 1,568 |
Common Stock Repurchased |  | - |  |  | - |  |  | (202,408 | ) |  | - |  |  | - |  |  | - |  |  | - |  |  | (13,793 | ) |  | (13,793 | )
Cash Dividends Declared Common Stock ($0.70 per share) |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (27,944 | ) |  | - |  |  | (27,944 | )
Cash Dividends Declared Preferred Stock |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (1,969 | ) |  | - |  |  | (1,969 | )
Balance as of March 31, 2023 |  | 180,000 |  | $ | 180,000 |  |  | 39,646,506 |  | $ | 583 |  | $ | 624,126 |  | $ | (405,298 | ) | $ | 2,074,428 |  | $ | (1,119,409 | ) | $ | 1,354,430 |
Balance as of December 31, 2021 |  | 180,000 |  |  | 180,000 |  |  | 40,253,193 |  |  | 581 |  |  | 602,508 |  |  | (66,382 | ) |  | 1,950,375 |  |  | (1,055,471 | ) |  | 1,611,611 |
Net Income |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 54,834 |  |  | - |  |  | 54,834 |
Other Comprehensive Loss |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (179,771 | ) |  | - |  |  | - |  |  | (179,771 | )
Share-Based Compensation |  | - |  |  | - |  |  | - |  |  | - |  |  | 4,010 |  |  | - |  |  | - |  |  | - |  |  | 4,010 |
Common Stock Issued under Purchase and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity Compensation Plans |  | - |  |  | - |  |  | 197,783 |  |  | 1 |  |  | 543 |  |  | - |  |  | (185 | ) |  | 2,036 |  |  | 2,395 |
Common Stock Repurchased |  | - |  |  | - |  |  | (162,611 | ) |  | - |  |  | - |  |  | - |  |  | - |  |  | (13,960 | ) |  | (13,960 | )
Cash Dividends Declared Common Stock ($0.70 per share) |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (28,265 | ) |  | - |  |  | (28,265 | )
Cash Dividends Declared Preferred Stock |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (1,969 | ) |  | - |  |  | (1,969 | )
Balance as of March 31, 2022 |  | 180,000 |  | $ | 180,000 |  |  | 40,288,365 |  | $ | 582 |  | $ | 607,061 |  | $ | (246,153 | ) | $ | 1,974,790 |  | $ | (1,067,395 | ) | $ | 1,448,885 |

Bank of Hawai‘i Corporation and Subsidiaries |  |  |  |  |  |
Average Balances and Interest Rates - Taxable-Equivalent Basis 1 |  | Table 7
| Three Months Ended |  |  | Three Months Ended |  |  | Three Months Ended |  |
| March 31, 2023 |  |  | December 31, 2022 |  |  | March 31, 2022 |  |
| Average |  | Income/ |  | Yield/ |  |  | Average |  | Income/ |  | Yield/ |  |  | Average |  | Income/ |  | Yield/ |  |
(dollars in millions) | Balance |  | Expense 2 |  | Rate |  |  | Balance |  | Expense 2 |  | Rate |  |  | Balance |  | Expense 2 |  | Rate |  |
Earning Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-Bearing Deposits in Other Banks | $ | 1.7 |  | $ | - |  |  | 6.25 |  | % | $ | 2.2 |  | $ | - |  |  | 2.32 |  | % | $ | 3.4 |  | $ | - |  |  | 0.45 |  | %
Funds Sold |  | 295.9 |  |  | 3.4 |  |  | 4.55 |  |  |  | 118.1 |  |  | 1.2 |  |  | 3.62 |  |  |  | 238.5 |  |  | 0.1 |  |  | 0.21 |  |
Investment Securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable |  | 2,820.3 |  |  | 23.8 |  |  | 3.40 |  |  |  | 2,593.5 |  |  | 18.4 |  |  | 2.83 |  |  |  | 4,399.9 |  |  | 17.1 |  |  | 1.56 |  |
Non-Taxable |  | 9.6 |  |  | 0.1 |  |  | 4.38 |  |  |  | 7.5 |  |  | 0.1 |  |  | 4.14 |  |  |  | 3.0 |  |  | - |  |  | 1.93 |  |
Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable |  | 5,336.2 |  |  | 23.8 |  |  | 1.78 |  |  |  | 5,401.9 |  |  | 23.5 |  |  | 1.74 |  |  |  | 4,567.4 |  |  | 18.6 |  |  | 1.63 |  |
Non-Taxable |  | 35.3 |  |  | 0.2 |  |  | 2.10 |  |  |  | 35.4 |  |  | 0.2 |  |  | 2.10 |  |  |  | 35.8 |  |  | 0.2 |  |  | 2.10 |  |
Total Investment Securities |  | 8,201.4 |  |  | 47.9 |  |  | 2.34 |  |  |  | 8,038.3 |  |  | 42.2 |  |  | 2.10 |  |  |  | 9,006.1 |  |  | 35.9 |  |  | 1.59 |  |
Loans Held for Sale |  | 1.5 |  |  | - |  |  | 5.30 |  |  |  | 3.3 |  |  | - |  |  | 5.65 |  |  |  | 13.7 |  |  | 0.1 |  |  | 2.78 |  |
Loans and Leases 3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and Industrial |  | 1,411.4 |  |  | 16.2 |  |  | 4.67 |  |  |  | 1,379.9 |  |  | 14.8 |  |  | 4.25 |  |  |  | 1,332.9 |  |  | 9.0 |  |  | 2.73 |  |
Paycheck Protection Program |  | 16.9 |  |  | 0.1 |  |  | 2.35 |  |  |  | 21.3 |  |  | 0.1 |  |  | 2.30 |  |  |  | 89.0 |  |  | 1.8 |  |  | 8.33 |  |
Commercial Mortgage |  | 3,736.9 |  |  | 45.1 |  |  | 4.90 |  |  |  | 3,627.4 |  |  | 40.6 |  |  | 4.44 |  |  |  | 3,158.8 |  |  | 21.7 |  |  | 2.80 |  |
Construction |  | 280.4 |  |  | 3.9 |  |  | 5.65 |  |  |  | 246.9 |  |  | 3.3 |  |  | 5.29 |  |  |  | 227.6 |  |  | 2.1 |  |  | 3.68 |  |
Commercial Lease Financing |  | 66.9 |  |  | - |  |  | (0.14 | ) |  |  | 72.0 |  |  | 0.3 |  |  | 1.49 |  |  |  | 98.8 |  |  | 0.4 |  |  | 1.45 |  |
Residential Mortgage |  | 4,666.0 |  |  | 39.9 |  |  | 3.42 |  |  |  | 4,617.9 |  |  | 38.9 |  |  | 3.37 |  |  |  | 4,343.3 |  |  | 34.9 |  |  | 3.21 |  |
Home Equity |  | 2,239.4 |  |  | 18.2 |  |  | 3.30 |  |  |  | 2,207.7 |  |  | 17.9 |  |  | 3.23 |  |  |  | 1,898.9 |  |  | 13.3 |  |  | 2.83 |  |
Automobile |  | 871.8 |  |  | 7.3 |  |  | 3.37 |  |  |  | 851.1 |  |  | 7.0 |  |  | 3.29 |  |  |  | 737.4 |  |  | 5.9 |  |  | 3.23 |  |
Other 4 |  | 427.8 |  |  | 6.2 |  |  | 5.83 |  |  |  | 428.6 |  |  | 6.1 |  |  | 5.64 |  |  |  | 403.7 |  |  | 5.5 |  |  | 5.47 |  |
Total Loans and Leases |  | 13,717.5 |  |  | 136.9 |  |  | 4.03 |  |  |  | 13,452.8 |  |  | 129.0 |  |  | 3.81 |  |  |  | 12,290.4 |  |  | 94.6 |  |  | 3.10 |  |
Other |  | 67.2 |  |  | 0.6 |  |  | 3.56 |  |  |  | 50.1 |  |  | 0.4 |  |  | 2.72 |  |  |  | 36.7 |  |  | 0.2 |  |  | 2.21 |  |
Total Earning Assets |  | 22,285.2 |  |  | 188.8 |  |  | 3.42 |  |  |  | 21,664.8 |  |  | 172.8 |  |  | 3.17 |  |  |  | 21,588.8 |  |  | 130.9 |  |  | 2.44 |  |
Cash and Due from Banks |  | 319.1 |  |  |  |  |  |  |  | 244.3 |  |  |  |  |  |  |  | 233.3 |  |  |  |  |  |
Other Assets |  | 1,261.2 |  |  |  |  |  |  |  | 1,238.3 |  |  |  |  |  |  |  | 1,025.4 |  |  |  |  |  |
Total Assets | $ | 23,865.5 |  |  |  |  |  |  | $ | 23,147.4 |  |  |  |  |  |  | $ | 22,847.5 |  |  |  |  |  |
Interest-Bearing Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-Bearing Deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Demand | $ | 4,215.9 |  |  | 5.2 |  |  | 0.50 |  |  | $ | 4,131.4 |  |  | 3.5 |  |  | 0.33 |  |  | $ | 4,655.4 |  |  | 0.5 |  |  | 0.04 |  |
Savings |  | 8,009.0 |  |  | 20.6 |  |  | 1.05 |  |  |  | 7,869.9 |  |  | 13.4 |  |  | 0.68 |  |  |  | 7,540.6 |  |  | 1.1 |  |  | 0.06 |  |
Time |  | 1,789.9 |  |  | 12.0 |  |  | 2.71 |  |  |  | 1,467.7 |  |  | 6.6 |  |  | 1.78 |  |  |  | 971.5 |  |  | 0.8 |  |  | 0.34 |  |
Total Interest-Bearing Deposits |  | 14,014.8 |  |  | 37.8 |  |  | 1.09 |  |  |  | 13,469.0 |  |  | 23.5 |  |  | 0.69 |  |  |  | 13,167.5 |  |  | 2.4 |  |  | 0.07 |  |
Short-Term Borrowings |  | 325.4 |  |  | 3.9 |  |  | 4.80 |  |  |  | 234.9 |  |  | 2.3 |  |  | 3.82 |  |  |  | 6.8 |  |  | - |  |  | 0.11 |  |
Securities Sold Under Agreements to Repurchase |  | 725.5 |  |  | 5.4 |  |  | 2.96 |  |  |  | 594.5 |  |  | 4.3 |  |  | 2.82 |  |  |  | 450.5 |  |  | 2.8 |  |  | 2.46 |  |
Other Debt |  | 499.6 |  |  | 5.3 |  |  | 4.30 |  |  |  | 137.5 |  |  | 1.5 |  |  | 4.32 |  |  |  | 10.4 |  |  | 0.2 |  |  | 7.05 |  |
Total Interest-Bearing Liabilities |  | 15,565.3 |  |  | 52.4 |  |  | 1.36 |  |  |  | 14,435.9 |  |  | 31.6 |  |  | 0.87 |  |  |  | 13,635.2 |  |  | 5.4 |  |  | 0.16 |  |
Net Interest Income |  |  | $ | 136.4 |  |  |  |  |  |  | $ | 141.2 |  |  |  |  |  |  | $ | 125.5 |  |  |  |
Interest Rate Spread |  |  |  |  |  | 2.06 |  | % |  |  |  |  |  | 2.30 |  | % |  |  |  |  |  | 2.28 |  | %
Net Interest Margin |  |  |  |  |  | 2.47 |  | % |  |  |  |  |  | 2.60 |  | % |  |  |  |  |  | 2.34 |  | %
Noninterest-Bearing Demand Deposits |  | 6,416.1 |  |  |  |  |  |  |  | 6,872.3 |  |  |  |  |  |  |  | 7,258.6 |  |  |  |  |  |
Other Liabilities |  | 551.2 |  |  |  |  |  |  |  | 552.9 |  |  |  |  |  |  |  | 385.0 |  |  |  |  |  |
Shareholders' Equity |  | 1,332.9 |  |  |  |  |  |  |  | 1,286.3 |  |  |  |  |  |  |  | 1,568.7 |  |  |  |  |  |
Total Liabilities and Shareholders' Equity | $ | 23,865.5 |  |  |  |  |  |  | $ | 23,147.4 |  |  |  |  |  |  | $ | 22,847.5 |  |  |  |  |  |
1 Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $495,000, $433,000, and $254,000
for the three months ended March 31, 2023, December 31, 2022, and March 31, 2022, respectively.
3 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.
4 Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawai‘i Corporation and Subsidiaries |  |  |
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis |  | Table 8a |
| Three Months Ended March 31, 2023 |
| Compared to December 31, 2022 |
(dollars in millions) | Volume 1 |  | Rate 1 |  | Total |
Change in Interest Income: |  |  |  |  |  |
Funds Sold | $ | 1.9 |  | $ | 0.3 |  | $ | 2.2 |
Investment Securities |  |  |  |  |  |
Available-for-Sale |  |  |  |  |  |
Taxable |  | 1.6 |  |  | 3.8 |  |  | 5.4 |
Held-to-Maturity |  |  |  |  |  |
Taxable |  | (0.2 | ) |  | 0.5 |  |  | 0.3 |
Total Investment Securities |  | 1.4 |  |  | 4.3 |  |  | 5.7 |
Loans and Leases |  |  |  |  |  |
Commercial and Industrial |  | 0.3 |  |  | 1.1 |  |  | 1.4 |
Commercial Mortgage |  | 1.0 |  |  | 3.5 |  |  | 4.5 |
Construction |  | 0.4 |  |  | 0.2 |  |  | 0.6 |
Commercial Lease Financing |  | - |  |  | (0.3 | ) |  | (0.3 | )
Residential Mortgage |  | 0.4 |  |  | 0.6 |  |  | 1.0 |
Home Equity |  | 0.1 |  |  | 0.2 |  |  | 0.3 |
Automobile |  | 0.1 |  |  | 0.2 |  |  | 0.3 |
Other 2 |  | - |  |  | 0.1 |  |  | 0.1 |
Total Loans and Leases |  | 2.3 |  |  | 5.6 |  |  | 7.9 |
Other |  | 0.1 |  |  | 0.1 |  |  | 0.2 |
Total Change in Interest Income |  | 5.7 |  |  | 10.3 |  |  | 16.0 |
Change in Interest Expense: |  |  |  |  |  |
Interest-Bearing Deposits |  |  |  |  |  |
Demand |  | 0.1 |  |  | 1.6 |  |  | 1.7 |
Savings |  | 0.2 |  |  | 7.0 |  |  | 7.2 |
Time |  | 1.6 |  |  | 3.8 |  |  | 5.4 |
Total Interest-Bearing Deposits |  | 1.9 |  |  | 12.4 |  |  | 14.3 |
Short-Term Borrowings |  | 1.0 |  |  | 0.6 |  |  | 1.6 |
Securities Sold Under Agreements to Repurchase |  | 0.9 |  |  | 0.2 |  |  | 1.1 |
Other Debt |  | 3.8 |  |  | - |  |  | 3.8 |
Total Change in Interest Expense |  | 7.6 |  |  | 13.2 |  |  | 20.8 |
Change in Net Interest Income | $ | (1.9 | ) | $ | (2.9 | ) | $ | (4.8 | )
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 Hawai‘i Corporation and Subsidiaries |  |  |
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis |  | Table 8b |
| Three Months Ended March 31, 2023 |
| Compared to March 31, 2022 |
(dollars in millions) | Volume 1 |  | Rate 1 |  | Total |
Change in Interest Income: |  |  |  |  |  |
Funds Sold | $ | - |  | $ | 3.3 |  | $ | 3.3 |
Investment Securities |  |  |  |  |  |
Available-for-Sale |  |  |  |  |  |
Taxable |  | (7.8 | ) |  | 14.5 |  |  | 6.7 |
Non-Taxable |  | 0.1 |  |  | - |  |  | 0.1 |
Held-to-Maturity |  |  |  |  |  |
Taxable |  | 3.3 |  |  | 1.9 |  |  | 5.2 |
Total Investment Securities |  | (4.4 | ) |  | 16.4 |  |  | 12.0 |
Loans Held for Sale |  | (0.1 | ) |  | - |  |  | (0.1 | )
Loans and Leases |  |  |  |  |  |
Commercial and Industrial |  | 0.6 |  |  | 6.6 |  |  | 7.2 |
Paycheck Protection Program |  | (0.9 | ) |  | (0.8 | ) |  | (1.7 | )
Commercial Mortgage |  | 4.6 |  |  | 18.8 |  |  | 23.4 |
Construction |  | 0.6 |  |  | 1.2 |  |  | 1.8 |
Commercial Lease Financing |  | (0.2 | ) |  | (0.2 | ) |  | (0.4 | )
Residential Mortgage |  | 2.7 |  |  | 2.3 |  |  | 5.0 |
Home Equity |  | 2.5 |  |  | 2.4 |  |  | 4.9 |
Automobile |  | 1.1 |  |  | 0.3 |  |  | 1.4 |
Other 2 |  | 0.3 |  |  | 0.4 |  |  | 0.7 |
Total Loans and Leases |  | 11.3 |  |  | 31.0 |  |  | 42.3 |
Other |  | 0.2 |  |  | 0.2 |  |  | 0.4 |
Total Change in Interest Income |  | 7.0 |  |  | 50.9 |  |  | 57.9 |
Change in Interest Expense: |  |  |  |  |  |
Interest-Bearing Deposits |  |  |  |  |  |
Demand |  | - |  |  | 4.7 |  |  | 4.7 |
Savings |  | - |  |  | 19.5 |  |  | 19.5 |
Time |  | 1.2 |  |  | 10.0 |  |  | 11.2 |
Total Interest-Bearing Deposits |  | 1.2 |  |  | 34.2 |  |  | 35.4 |
Short-Term Borrowings |  | 2.0 |  |  | 1.9 |  |  | 3.9 |
Securities Sold Under Agreements to Repurchase |  | 2.0 |  |  | 0.6 |  |  | 2.6 |
Other Debt |  | 5.2 |  |  | (0.1 | ) |  | 5.1 |
Total Change in Interest Expense |  | 10.4 |  |  | 36.6 |  |  | 47.0 |
Change in Net Interest Income | $ | (3.4 | ) | $ | 14.3 |  | $ | 10.9 |
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 Hawai‘i Corporation and Subsidiaries |
Salaries and Benefits |  | Table 9 |
| Three Months Ended |
| March 31, |  | December 31, |  | March 31, |
(dollars in thousands) | 2023 |  | 2022 |  | 2022 |
Salaries | $ | 38,617 |  | $ | 37,395 |  | $ | 34,932 |
Incentive Compensation |  | 3,997 |  |  | 5,356 |  |  | 6,111 |
Share-Based Compensation |  | 3,159 |  |  | 3,901 |  |  | 3,799 |
Commission Expense |  | 647 |  |  | 830 |  |  | 1,641 |
Retirement and Other Benefits |  | 5,888 |  |  | 4,065 |  |  | 4,693 |
Payroll Taxes |  | 5,848 |  |  | 2,591 |  |  | 4,944 |
Medical, Dental, and Life Insurance |  | 3,864 |  |  | 3,528 |  |  | 3,234 |
Separation Expense |  | 3,068 |  |  | (27 | ) |  | 570 |
Total Salaries and Benefits | $ | 65,088 |  | $ | 57,639 |  | $ | 59,924 |

Bank of Hawai‘i Corporation and Subsidiaries |  |  |  |  |
Loan and Lease Portfolio Balances |  |  |  | Table 10 |
| March 31, |  | December 31, |  | September 30, |  | June 30, |  | March 31, |
(dollars in thousands) | 2023 |  | 2022 |  | 2022 |  | 2022 |  | 2022 |
Commercial |  |  |  |  |  |  |  |  |  |
Commercial and Industrial | $ | 1,425,916 |  | $ | 1,389,066 |  | $ | 1,368,966 |  | $ | 1,323,830 |  | $ | 1,354,757 |
Paycheck Protection Program |  | 15,175 |  |  | 19,579 |  |  | 22,955 |  |  | 31,964 |  |  | 57,809 |
Commercial Mortgage |  | 3,826,283 |  |  | 3,725,542 |  |  | 3,591,943 |  |  | 3,464,126 |  |  | 3,257,689 |
Construction |  | 232,903 |  |  | 260,825 |  |  | 236,498 |  |  | 246,177 |  |  | 248,363 |
Lease Financing |  | 65,611 |  |  | 69,491 |  |  | 73,989 |  |  | 89,535 |  |  | 98,107 |
Total Commercial |  | 5,565,888 |  |  | 5,464,503 |  |  | 5,294,351 |  |  | 5,155,632 |  |  | 5,016,725 |
Consumer |  |  |  |  |  |  |  |  |  |
Residential Mortgage |  | 4,691,298 |  |  | 4,653,072 |  |  | 4,585,723 |  |  | 4,486,571 |  |  | 4,405,718 |
Home Equity |  | 2,260,001 |  |  | 2,225,950 |  |  | 2,185,484 |  |  | 2,101,612 |  |  | 1,958,285 |
Automobile |  | 877,979 |  |  | 870,396 |  |  | 820,640 |  |  | 775,065 |  |  | 742,934 |
Other 1 |  | 429,356 |  |  | 432,499 |  |  | 435,408 |  |  | 432,693 |  |  | 420,830 |
Total Consumer |  | 8,258,634 |  |  | 8,181,917 |  |  | 8,027,255 |  |  | 7,795,941 |  |  | 7,527,767 |
Total Loans and Leases | $ | 13,824,522 |  | $ | 13,646,420 |  | $ | 13,321,606 |  | $ | 12,951,573 |  | $ | 12,544,492 |
Deposits |  |  |  |  |  |  |  |  |  |
| March 31, |  | December 31, |  | September 30, |  | June 30, |  | March 31, |
(dollars in thousands) | 2023 |  | 2022 |  | 2022 |  | 2022 |  | 2022 |
Consumer | $ | 10,158,833 |  | $ | 10,304,335 |  | $ | 10,507,946 |  | $ | 10,554,121 |  | $ | 10,654,192 |
Commercial |  | 8,594,441 |  |  | 8,569,670 |  |  | 8,841,781 |  |  | 8,824,609 |  |  | 8,818,477 |
Public and Other |  | 1,738,026 |  |  | 1,741,691 |  |  | 1,539,046 |  |  | 1,646,951 |  |  | 1,243,618 |
Total Deposits | $ | 20,491,300 |  | $ | 20,615,696 |  | $ | 20,888,773 |  | $ | 21,025,681 |  | $ | 20,716,287 |
1 Comprised of other revolving credit, installment, and lease financing. |

Bank of Hawai‘i Corporation and Subsidiaries |  |  |
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More |  | Table 11 |
| March 31, |  | December 31, |  | September 30, |  | June 30, |  | March 31, |
(dollars in thousands) | 2023 |  | 2022 |  | 2022 |  | 2022 |  | 2022 |
Non-Performing Assets |  |  |  |  |  |  |  |  |  |
Non-Accrual Loans and Leases |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |
Commercial and Industrial | $ | 31 |  | $ | 37 |  | $ | 49 |  | $ | 85 |  | $ | 99 |
Commercial Mortgage |  | 3,216 |  |  | 3,309 |  |  | 3,396 |  |  | 3,462 |  |  | 8,065 |
Total Commercial |  | 3,247 |  |  | 3,346 |  |  | 3,445 |  |  | 3,547 |  |  | 8,164 |
Consumer |  |  |  |  |  |  |  |  |  |
Residential Mortgage |  | 4,199 |  |  | 4,239 |  |  | 4,945 |  |  | 5,179 |  |  | 3,845 |
Home Equity |  | 3,638 |  |  | 4,022 |  |  | 4,438 |  |  | 4,435 |  |  | 5,638 |
Total Consumer |  | 7,837 |  |  | 8,261 |  |  | 9,383 |  |  | 9,614 |  |  | 9,483 |
Total Non-Accrual Loans and Leases |  | 11,084 |  |  | 11,607 |  |  | 12,828 |  |  | 13,161 |  |  | 17,647 |
Foreclosed Real Estate |  | 1,040 |  |  | 1,040 |  |  | 1,040 |  |  | 2,332 |  |  | 2,332 |
Total Non-Performing Assets | $ | 12,124 |  | $ | 12,647 |  | $ | 13,868 |  | $ | 15,493 |  | $ | 19,979 |
Accruing Loans and Leases Past Due 90 Days or More |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |
Commercial and Industrial | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 22 |
Total Commercial |  | - |  |  | - |  |  | - |  |  | - |  |  | 22 |
Consumer |  |  |  |  |  |  |  |  |  |
Residential Mortgage |  | 4,566 |  |  | 2,429 |  |  | 3,279 |  |  | 2,638 |  |  | 4,113 |
Home Equity |  | 1,723 |  |  | 1,673 |  |  | 1,061 |  |  | 2,029 |  |  | 2,722 |
Automobile |  | 598 |  |  | 589 |  |  | 467 |  |  | 359 |  |  | 504 |
Other 1 |  | 632 |  |  | 683 |  |  | 513 |  |  | 508 |  |  | 649 |
Total Consumer |  | 7,519 |  |  | 5,374 |  |  | 5,320 |  |  | 5,534 |  |  | 7,988 |
Total Accruing Loans and Leases Past Due 90 Days or More | $ | 7,519 |  | $ | 5,374 |  | $ | 5,320 |  | $ | 5,534 |  | $ | 8,010 |
Total Loans and Leases | $ | 13,824,522 |  | $ | 13,646,420 |  | $ | 13,321,606 |  | $ | 12,951,573 |  | $ | 12,544,492 |
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases |  | 0.08 | % |  | 0.09 | % |  | 0.10 | % |  | 0.10 | % |  | 0.14 | %
Ratio of Non-Performing Assets to Total Loans and Leases |  |  |  |  |  |  |  |  |  |
and Foreclosed Real Estate |  | 0.09 | % |  | 0.09 | % |  | 0.10 | % |  | 0.12 | % |  | 0.16 | %
Ratio of Non-Performing Assets to Total Assets |  | 0.05 | % |  | 0.05 | % |  | 0.06 | % |  | 0.06 | % |  | 0.07 | %
Ratio of Commercial Non-Performing Assets to Total Commercial Loans |  |  |  |  |  |  |  |  |  |
and Leases and Commercial Foreclosed Real Estate |  | 0.06 | % |  | 0.06 | % |  | 0.07 | % |  | 0.07 | % |  | 0.16 | %
Ratio of Consumer Non-Performing Assets to Total Consumer Loans |  |  |  |  |  |  |  |  |  |
and Leases and Consumer Foreclosed Real Estate |  | 0.11 | % |  | 0.11 | % |  | 0.13 | % |  | 0.15 | % |  | 0.16 | %
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 |  | 0.14 | % |  | 0.13 | % |  | 0.14 | % |  | 0.16 | % |  | 0.22 | %
Quarter to Quarter Changes in Non-Performing Assets |  |  |  |  |  |  |  |  |  |
Balance at Beginning of Quarter | $ | 12,647 |  | $ | 13,868 |  | $ | 15,493 |  | $ | 19,979 |  | $ | 18,966 |
Additions |  | 552 |  |  | 704 |  |  | 489 |  |  | 2,293 |  |  | 2,243 |
Reductions |  |  |  |  |  |  |  |  |  |
Payments |  | (778 | ) |  | (1,605 | ) |  | (706 | ) |  | (5,511 | ) |  | (1,230 | )
Return to Accrual Status |  | (297 | ) |  | (301 | ) |  | (116 | ) |  | (1,267 | ) |  | - |
Sales of Foreclosed Real Estate |  | - |  |  | - |  |  | (1,292 | ) |  | - |  |  | - |
Charge-offs / Write-downs |  | - |  |  | (19 | ) |  | - |  |  | (1 | ) |  | - |
Total Reductions |  | (1,075 | ) |  | (1,925 | ) |  | (2,114 | ) |  | (6,779 | ) |  | (1,230 | )
Balance at End of Quarter | $ | 12,124 |  | $ | 12,647 |  | $ | 13,868 |  | $ | 15,493 |  | $ | 19,979 |
1 Comprised of other revolving credit, installment, and lease financing. |  |  |  |  |  |  |

Bank of Hawai‘i Corporation and Subsidiaries |  |  |
Reserve for Credit Losses |  | Table 12 |
| Three Months Ended |
| March 31, |  | December 31, |  | March 31, |
(dollars in thousands) | 2023 |  | 2022 |  | 2022 |
Balance at Beginning of Period | $ | 151,247 |  | $ | 152,927 |  | $ | 164,297 |
Loans and Leases Charged-Off |  |  |  |  |  |
Commercial |  |  |  |  |  |
Commercial and Industrial |  | (261 | ) |  | (196 | ) |  | (349 | )
Consumer |  |  |  |  |  |
Home Equity |  | (50 | ) |  | (10 | ) |  | (68 | )
Automobile |  | (1,663 | ) |  | (1,171 | ) |  | (1,530 | )
Other 1 |  | (2,335 | ) |  | (1,846 | ) |  | (1,961 | )
Total Loans and Leases Charged-Off |  | (4,309 | ) |  | (3,223 | ) |  | (3,908 | )
Recoveries on Loans and Leases Previously Charged-Off |  |  |  |  |  |
Commercial |  |  |  |  |  |
Commercial and Industrial |  | 50 |  |  | 87 |  |  | 369 |
Consumer |  |  |  |  |  |
Residential Mortgage |  | 61 |  |  | 63 |  |  | 54 |
Home Equity |  | 184 |  |  | 202 |  |  | 515 |
Automobile |  | 672 |  |  | 412 |  |  | 739 |
Other 1 |  | 674 |  |  | 604 |  |  | 745 |
Total Recoveries on Loans and Leases Previously Charged-Off |  | 1,641 |  |  | 1,368 |  |  | 2,422 |
Net Charged-Off - Loans and Leases |  | (2,668 | ) |  | (1,855 | ) |  | (1,486 | )
Net Charged-Off - Accrued Interest Receivable |  | - |  |  | (25 | ) |  | (47 | )
Provision for Credit Losses: |  |  |  |  |  |
Loans and Leases |  | 1,806 |  |  | (142 | ) |  | (4,307 | )
Accrued Interest Receivable |  | - |  |  | 25 |  |  | (367 | )
Unfunded Commitments |  | 194 |  |  | 317 |  |  | (826 | )
Total Provision for Credit Losses |  | 2,000 |  |  | 200 |  |  | (5,500 | )
Balance at End of Period | $ | 150,579 |  | $ | 151,247 |  | $ | 157,264 |
Components |  |  |  |  |  |
Allowance for Credit Losses - Loans and Leases | $ | 143,577 |  | $ | 144,439 |  | $ | 152,028 |
Reserve for Unfunded Commitments |  | 7,002 |  |  | 6,808 |  |  | 5,236 |
Total Reserve for Credit Losses | $ | 150,579 |  | $ | 151,247 |  | $ | 157,264 |
Average Loans and Leases Outstanding | $ | 13,717,483 |  | $ | 13,452,791 |  | $ | 12,290,402 |
Ratio of Net Loans and Leases Charged-Off to |  |  |  |  |  |
Average Loans and Leases Outstanding (annualized) |  | 0.08 | % |  | 0.05 | % |  | 0.05 | %
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 2 |  | 1.04 | % |  | 1.06 | % |  | 1.21 | %
1 Comprised of other revolving credit, installment, and lease financing. |
2 The numerator comprises the Allowance for Credit Losses - Loans and Leases. |

Bank of Hawai‘i Corporation and Subsidiaries |  |  |  |  |
Business Segments Selected Financial Information |  |  |  | Table 13 |
| Consumer |  | Commercial |  | Treasury |  | Consolidated |
(dollars in thousands) | Banking |  | Banking |  | and Other |  | Total |
Three Months Ended March 31, 2023 |  |  |  |  |  |  |  |
Net Interest Income (Loss) | $ | 98,008 |  | $ | 56,705 |  | $ | (18,758 | ) | $ | 135,955 |
Provision for Credit Losses |  | 2,669 |  |  | (1 | ) |  | (668 | ) |  | 2,000 |
Net Interest Income (Loss) After Provision for Credit Losses |  | 95,339 |  |  | 56,706 |  |  | (18,090 | ) |  | 133,955 |
Noninterest Income |  | 31,154 |  |  | 8,649 |  |  | 934 |  |  | 40,737 |
Noninterest Expense |  | (85,073 | ) |  | (20,289 | ) |  | (6,557 | ) |  | (111,919 | )
Income (Loss) Before Income Taxes |  | 41,420 |  |  | 45,066 |  |  | (23,713 | ) |  | 62,773 |
Provision for Income Taxes |  | (10,623 | ) |  | (10,793 | ) |  | 5,485 |  |  | (15,931 | )
Net Income (Loss) | $ | 30,797 |  | $ | 34,273 |  | $ | (18,228 | ) | $ | 46,842 |
Total Assets as of March 31, 2023 | $ | 8,654,243 |  | $ | 5,625,254 |  | $ | 9,652,480 |  | $ | 23,931,977 |
Three Months Ended March 31, 2022 1 |  |  |  |  |  |  |  |
Net Interest Income | $ | 70,361 |  | $ | 46,349 |  | $ | 8,553 |  | $ | 125,263 |
Provision for Credit Losses |  | 1,683 |  |  | (197 | ) |  | (6,986 | ) |  | (5,500 | )
Net Interest Income After Provision for Credit Losses |  | 68,678 |  |  | 46,546 |  |  | 15,539 |  |  | 130,763 |
Noninterest Income |  | 31,969 |  |  | 10,198 |  |  | 1,384 |  |  | 43,551 |
Noninterest Expense |  | (81,810 | ) |  | (18,669 | ) |  | (3,395 | ) |  | (103,874 | )
Income Before Income Taxes |  | 18,837 |  |  | 38,075 |  |  | 13,528 |  |  | 70,440 |
Provision for Income Taxes |  | (4,714 | ) |  | (9,197 | ) |  | (1,695 | ) |  | (15,606 | )
Net Income | $ | 14,123 |  | $ | 28,878 |  | $ | 11,833 |  | $ | 54,834 |
Total Assets as of March 31, 2022 1 | $ | 7,927,186 |  | $ | 5,174,115 |  | $ | 9,899,016 |  | $ | 23,000,317 |
1 Certain prior period information has been reclassified to conform to current presentation. |

Bank of Hawai‘i Corporation and Subsidiaries |  |  |
Selected Quarterly Financial Data |  |  | Table 14
| Three Months Ended |  |
| March 31, |  |  | December 31, |  |  | September 30, |  |  | June 30, |  |  | March 31, |  |
(dollars in thousands, except per share amounts) | 2023 |  |  | 2022 |  |  | 2022 |  |  | 2022 |  |  | 2022 |  |
Quarterly Operating Results |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest and Fees on Loans and Leases | $ | 136,501 |  |  | $ | 128,683 |  |  | $ | 115,013 |  |  | $ | 101,663 |  |  | $ | 94,439 |  |
Income on Investment Securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-Sale |  | 23,893 |  |  |  | 18,476 |  |  |  | 16,995 |  |  |  | 17,984 |  |  |  | 17,100 |  |
Held-to-Maturity |  | 23,948 |  |  |  | 23,708 |  |  |  | 20,243 |  |  |  | 18,838 |  |  |  | 18,701 |  |
Deposits |  | 27 |  |  |  | 13 |  |  |  | 10 |  |  |  | 5 |  |  |  | 4 |  |
Funds Sold |  | 3,366 |  |  |  | 1,093 |  |  |  | 2,335 |  |  |  | 719 |  |  |  | 127 |  |
Other |  | 597 |  |  |  | 340 |  |  |  | 322 |  |  |  | 353 |  |  |  | 202 |  |
Total Interest Income |  | 188,332 |  |  |  | 172,313 |  |  |  | 154,918 |  |  |  | 139,562 |  |  |  | 130,573 |  |
Interest Expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | 37,794 |  |  |  | 23,494 |  |  |  | 10,296 |  |  |  | 3,535 |  |  |  | 2,353 |  |
Securities Sold Under Agreements to Repurchase |  | 5,377 |  |  |  | 4,289 |  |  |  | 2,745 |  |  |  | 2,794 |  |  |  | 2,772 |  |
Funds Purchased |  | 704 |  |  |  | 318 |  |  |  | 40 |  |  |  | 57 |  |  |  | 2 |  |
Short-Term Borrowings |  | 3,203 |  |  |  | 1,978 |  |  |  | - |  |  |  | 92 |  |  |  | - |  |
Other Debt |  | 5,299 |  |  |  | 1,496 |  |  |  | 182 |  |  |  | 182 |  |  |  | 183 |  |
Total Interest Expense |  | 52,377 |  |  |  | 31,575 |  |  |  | 13,263 |  |  |  | 6,660 |  |  |  | 5,310 |  |
Net Interest Income |  | 135,955 |  |  |  | 140,738 |  |  |  | 141,655 |  |  |  | 132,902 |  |  |  | 125,263 |  |
Provision for Credit Losses |  | 2,000 |  |  |  | 200 |  |  |  | - |  |  |  | (2,500 | ) |  |  | (5,500 | ) |
Net Interest Income After Provision for Credit Losses |  | 133,955 |  |  |  | 140,538 |  |  |  | 141,655 |  |  |  | 135,402 |  |  |  | 130,763 |  |
Noninterest Income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trust and Asset Management |  | 10,690 |  |  |  | 10,652 |  |  |  | 10,418 |  |  |  | 11,457 |  |  |  | 11,276 |  |
Mortgage Banking |  | 1,004 |  |  |  | 991 |  |  |  | 1,002 |  |  |  | 1,247 |  |  |  | 2,740 |  |
Service Charges on Deposit Accounts |  | 7,737 |  |  |  | 7,513 |  |  |  | 7,526 |  |  |  | 7,309 |  |  |  | 7,272 |  |
Fees, Exchange, and Other Service Charges |  | 13,808 |  |  |  | 13,906 |  |  |  | 13,863 |  |  |  | 14,193 |  |  |  | 12,952 |  |
Investment Securities Losses, Net |  | (1,792 | ) |  |  | (1,124 | ) |  |  | (2,147 | ) |  |  | (1,295 | ) |  |  | (1,545 | ) |
Annuity and Insurance |  | 1,271 |  |  |  | 1,087 |  |  |  | 1,034 |  |  |  | 870 |  |  |  | 791 |  |
Bank-Owned Life Insurance |  | 2,842 |  |  |  | 2,475 |  |  |  | 2,486 |  |  |  | 2,658 |  |  |  | 2,349 |  |
Other |  | 5,177 |  |  |  | 5,672 |  |  |  | (3,522 | ) |  |  | 5,719 |  |  |  | 7,716 |  |
Total Noninterest Income |  | 40,737 |  |  |  | 41,172 |  |  |  | 30,660 |  |  |  | 42,158 |  |  |  | 43,551 |  |
Noninterest Expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and Benefits |  | 65,088 |  |  |  | 57,639 |  |  |  | 59,938 |  |  |  | 57,769 |  |  |  | 59,924 |  |
Net Occupancy |  | 9,872 |  |  |  | 9,499 |  |  |  | 10,186 |  |  |  | 9,930 |  |  |  | 9,826 |  |
Net Equipment |  | 10,375 |  |  |  | 9,942 |  |  |  | 9,736 |  |  |  | 9,543 |  |  |  | 9,153 |  |
Data Processing |  | 4,583 |  |  |  | 4,579 |  |  |  | 4,616 |  |  |  | 4,607 |  |  |  | 4,560 |  |
Professional Fees |  | 3,883 |  |  |  | 3,958 |  |  |  | 3,799 |  |  |  | 3,542 |  |  |  | 3,258 |  |
FDIC Insurance |  | 3,234 |  |  |  | 1,774 |  |  |  | 1,680 |  |  |  | 1,590 |  |  |  | 1,502 |  |
Other |  | 14,884 |  |  |  | 15,312 |  |  |  | 15,794 |  |  |  | 15,958 |  |  |  | 15,651 |  |
Total Noninterest Expense |  | 111,919 |  |  |  | 102,703 |  |  |  | 105,749 |  |  |  | 102,939 |  |  |  | 103,874 |  |
Income Before Provision for Income Taxes |  | 62,773 |  |  |  | 79,007 |  |  |  | 66,566 |  |  |  | 74,621 |  |  |  | 70,440 |  |
Provision for Income Taxes |  | 15,931 |  |  |  | 17,700 |  |  |  | 13,765 |  |  |  | 17,759 |  |  |  | 15,606 |  |
Net Income | $ | 46,842 |  |  | $ | 61,307 |  |  | $ | 52,801 |  |  | $ | 56,862 |  |  | $ | 54,834 |  |
Preferred Stock Dividends |  | 1,969 |  |  |  | 1,969 |  |  |  | 1,969 |  |  |  | 1,969 |  |  |  | 1,969 |  |
Net Income Available to Common Shareholders | $ | 44,873 |  |  | $ | 59,338 |  |  | $ | 50,832 |  |  | $ | 54,893 |  |  | $ | 52,865 |  |
Basic Earnings Per Common Share | $ | 1.14 |  |  | $ | 1.51 |  |  | $ | 1.28 |  |  | $ | 1.38 |  |  | $ | 1.33 |  |
Diluted Earnings Per Common Share | $ | 1.14 |  |  | $ | 1.50 |  |  | $ | 1.28 |  |  | $ | 1.38 |  |  | $ | 1.32 |  |
Balance Sheet Totals |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and Leases | $ | 13,824,522 |  |  | $ | 13,646,420 |  |  | $ | 13,321,606 |  |  | $ | 12,951,573 |  |  | $ | 12,544,492 |  |
Total Assets |  | 23,931,977 |  |  |  | 23,606,877 |  |  |  | 23,134,040 |  |  |  | 23,232,699 |  |  |  | 23,000,317 |  |
Total Deposits |  | 20,491,300 |  |  |  | 20,615,696 |  |  |  | 20,888,773 |  |  |  | 21,025,681 |  |  |  | 20,716,287 |  |
Total Shareholders' Equity |  | 1,354,430 |  |  |  | 1,316,995 |  |  |  | 1,282,384 |  |  |  | 1,348,746 |  |  |  | 1,448,885 |  |
Performance Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on Average Assets |  | 0.80 |  | % |  | 1.05 |  | % |  | 0.91 |  | % |  | 1.00 |  | % |  | 0.97 |  | %
Return on Average Shareholders' Equity |  | 14.25 |  |  |  | 18.91 |  |  |  | 15.31 |  |  |  | 16.40 |  |  |  | 14.18 |  |
Return on Average Common Equity |  | 15.79 |  |  |  | 21.28 |  |  |  | 16.98 |  |  |  | 18.19 |  |  |  | 15.44 |  |
Efficiency Ratio 1 |  | 63.34 |  |  |  | 56.46 |  |  |  | 61.37 |  |  |  | 58.80 |  |  |  | 61.53 |  |
Net Interest Margin 2 |  | 2.47 |  |  |  | 2.60 |  |  |  | 2.60 |  |  |  | 2.47 |  |  |  | 2.34 |  |
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 Hawai‘i Corporation and Subsidiaries |  |  |  |  |
Hawaii Economic Trends |  |  | Table 15
| One Month Ended |  |  | Year Ended
(dollars in millions; jobs in thousands) | February 28, 2023 |  |  | December 31, 2022 | December 31, 2021
Hawaii Economic Trends |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State General Fund Revenues 1 | $ | 1,544.9 |  |  | (0.2 | ) | % | $ | 9,441.3 |  |  |  | 16.0 |  | % | $ | 8,137.9 |  |  |  | 26.9 |  | %
General Excise and Use Tax Revenue 1 |  | 797.0 |  |  | 12.8 |  |  |  | 4,263.4 |  |  |  | 18.3 |  |  |  | 3,604.3 |  |  |  | 18.6 |  |
Jobs 2 |  | 654.2 |  |  |  |  |  | 654.5 |  |  |  |  |  |  | 642.6 |  |  |  |  |
|  |  |  |  |  |  |  |  | February 28, |  |  | December 31,
|  |  |  |  |  |  |  |  | 2023 |  |  | 2022 | 2021
Unemployment, seasonally adjusted 3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Statewide |  |  |  |  |  |  |  |  |  | 3.6 |  | % |  | 3.7 |  | % |  | 3.2 |  | %
Honolulu County |  |  |  |  |  |  |  |  |  | 3.7 |  |  |  | 3.3 |  |  |  | 3.7 |  |
Hawaii County |  |  |  |  |  |  |  |  |  | 3.8 |  |  |  | 4.7 |  |  |  | 1.8 |  |
Maui County |  |  |  |  |  |  |  |  |  | 3.2 |  |  |  | 4.5 |  |  |  | 2.4 |  |
Kauai County |  |  |  |  |  |  |  |  |  | 3.2 |  |  |  | 4.7 |  |  |  | 2.7 |  |
|  |  |  |  |  | March 31, |  |  | December 31,
(1-year percentage change, except months of inventory) |  |  |  |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |
Housing Trends (Single Family Oahu) 4 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Median Home Price |  |  |  |  |  |  | (6.8 | ) | % |  | 11.6 |  | % |  | 19.3 |  | % |  | 5.2 |  | %
Home Sales Volume (units) |  |  |  |  |  |  | (37.0 | ) | % |  | (23.2 | ) | % |  | 17.9 |  | % |  | 2.3 |  | %
Months of Inventory |  |  |  |  |  |  | 2.1 |  |  |  | 2.1 |  |  |  | 0.8 |  |  |  | 1.4 |  |
|  |  |  |  |  | Monthly Visitor Arrivals, |  |  | Percentage Change
(in thousands) |  |  |  |  |  | Not Seasonally Adjusted |  |  | from Previous Year
Tourism 5 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
February 28, 2023 |  |  |  |  |  |  |  |  |  | 733.6 |  |  |  |  |  |  | 17.6 |  | %
January 31, 2023 |  |  |  |  |  |  |  |  |  | 775.1 |  |  |  |  |  |  | 36.7 |  |
December 31, 2022 |  |  |  |  |  |  |  |  |  | 858.1 |  |  |  |  |  |  | 14.0 |  |
November 30, 2022 |  |  |  |  |  |  |  |  |  | 725.5 |  |  |  |  |  |  | 18.2 |  |
October 31, 2022 |  |  |  |  |  |  |  |  |  | 726.1 |  |  |  |  |  |  | 31.8 |  |
September 30, 2022 |  |  |  |  |  |  |  |  |  | 691.8 |  |  |  |  |  |  | 37.1 |  |
August 31, 2022 |  |  |  |  |  |  |  |  |  | 829.7 |  |  |  |  |  |  | 14.8 |  |
July 31, 2022 |  |  |  |  |  |  |  |  |  | 919.2 |  |  |  |  |  |  | 4.5 |  |
June 30, 2022 |  |  |  |  |  |  |  |  |  | 841.8 |  |  |  |  |  |  | 6.4 |  |
May 31, 2022 |  |  |  |  |  |  |  |  |  | 774.1 |  |  |  |  |  |  | 22.9 |  |
April 30, 2022 |  |  |  |  |  |  |  |  |  | 809.6 |  |  |  |  |  |  | 67.3 |  |
March 31, 2022 |  |  |  |  |  |  |  |  |  | 785.7 |  |  |  |  |  |  | 78.7 |  |
February 28, 2022 |  |  |  |  |  |  |  |  |  | 623.7 |  |  |  |  |  |  | 165.1 |  |
January 31, 2022 |  |  |  |  |  |  |  |  |  | 567.2 |  |  |  |  |  |  | 229.8 |  |
December 31,2021 |  |  |  |  |  |  |  |  |  | 752.8 |  |  |  |  |  |  | 219.3 |  |
November 30, 2021 |  |  |  |  |  |  |  |  |  | 614.0 |  |  |  |  |  |  | 234.1 |  |
October 31, 2021 |  |  |  |  |  |  |  |  |  | 550.8 |  |  |  |  |  |  | 618.2 |  |
September 30, 2021 |  |  |  |  |  |  |  |  |  | 504.6 |  |  |  |  |  |  | 2,641.0 |  |
August 31, 2021 |  |  |  |  |  |  |  |  |  | 723.0 |  |  |  |  |  |  | 2,995.6 |  |
July 31, 2021 |  |  |  |  |  |  |  |  |  | 879.6 |  |  |  |  |  |  | 3,798.4 |  |
June 30, 2021 |  |  |  |  |  |  |  |  |  | 791.1 |  |  |  |  |  |  | 4,534.7 |  |
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 | ) |
1 Source: Hawaii Department of Business, Economic Development & Tourism
2 Source: U.S. Bureau of Labor Statistics
3 Source: University of Hawaii Economic Research Organization (UHERO)
4 Source: Honolulu Board of Realtors
5 Source: Hawaii Tourism Authority