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

Exhibit 99.1

Bank of Hawai‘i Corporation First Quarter 2024 Financial Results

•
Diluted Earnings Per Common Share $0.87
•
Net Income $36.4 Million
•
Board of Directors Declares Dividend of $0.70 Per Common Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (April 22, 2024) -- Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $0.87 for the first quarter of 2024, compared with diluted earnings per common share of $0.72 in the previous quarter and $1.14 in the same quarter of 2023. Net income for the first quarter of 2024 was $36.4 million, up 19.7% from the previous quarter and down 22.3% from the same quarter of 2023. The return on average common equity for the first quarter of 2024 was 11.20% compared with 9.55% in the previous quarter and 15.79% in the same quarter of 2023.

“Bank of Hawai‘i’s financial performance was solid for the first quarter of 2024,” said Peter Ho, Chairman, President, and CEO. “Credit quality, our hallmark, remained excellent with non-performing assets of 0.09% at quarter end and net charge offs of 0.07% during the quarter. Our net interest margin declined marginally by 2 basis points, while our core noninterest income and noninterest expense remained steady. Average loan growth was steady. Average deposits were down modestly, largely related to lower public deposits and the run-off of Lahaina fire related deposits which ran up in the prior quarter and spent down in the first quarter. All key capital ratios improved in the quarter as we continue to grow capital on the balance sheet.”

Financial Highlights

Net interest income for the first quarter of 2024 was $113.9 million, a decrease of 1.6% from the previous quarter and a decrease of 16.2% from the same quarter of 2023. The decrease in net interest income in the first quarter of 2024 was primarily due to higher funding costs, partially offset by higher earning asset yields.

Net interest margin was 2.11% in the first quarter of 2024, a decrease of 2 basis points from the previous quarter and a decrease of 36 basis points from the same quarter of 2023. The decrease in net interest margin was mainly due to higher funding costs, partially offset by higher earning asset yields.

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Bank of Hawai‘i Corporation First Quarter 2024 Financial Results |  | Page 2

The average yield on loans and leases was 4.63% in the first quarter of 2024, up 9 basis points from the prior quarter and up 60 basis points from the same quarter of 2023. The average yield on total earning assets was 3.89% in the first quarter of 2024, up 4 basis points from the prior quarter and up 47 basis points from the same quarter of 2023. The average cost of interest-bearing deposits was 2.39% in the first quarter of 2024, up 9 basis points from the prior quarter and up 130 basis points from the same quarter of 2023. The average cost of total deposits, including noninterest-bearing deposits, was 1.74%, up 7 basis points from the prior quarter and up 99 basis points from the same quarter of 2023. The changes in yields and rates over the linked quarter and year over year period reflected the higher rate environment.

Noninterest income was $42.3 million in the first quarter of 2024, flat from the previous quarter and an increase of 3.8% from the same period in 2023. Noninterest income in the first quarter of 2023 included a negative adjustment of $0.6 million related to a change in the Visa B conversion ratio. Adjusted for this item, noninterest income increased by 2.4% from adjusted noninterest income in the same period in 2023.

Noninterest expense was $105.9 million in the first quarter of 2024, a decrease of 8.7% from the previous quarter and a decrease of 5.4% from the same quarter of 2023. Noninterest expense in the first quarter of 2024 included seasonal payroll expense of approximately $2.2 million and separation expenses of $0.5 million. Noninterest expense in the fourth quarter of 2023 included an industry-wide FDIC Special Assessment of $14.7 million and $1.7 million of expense savings that are not expected to recur in 2024. Noninterest expense in the first quarter of 2023 included seasonal payroll expenses of approximately $4.0 million and separation expenses of $3.1 million. Adjusted for these items, noninterest expense for the first quarter of 2024 was $103.2 million, up 0.3% from adjusted noninterest expense in the previous quarter and down 1.6% from adjusted noninterest expense in the same period in 2023.

The effective tax rate for the first quarter of 2024 was 24.76% compared with 23.25% in the previous quarter and 25.38% during the same quarter of 2023. The higher effective tax rate in the first quarter of 2024 as compared to the previous quarter was mainly due to discrete items. The lower effective tax rate in the first quarter of 2024 as compared to the same period in 2023 was due to an increase in tax exempt income and tax benefits from low-income housing investments.

Asset Quality

The Company’s overall asset quality remained strong during the first quarter of 2024. Provision for credit losses for the first quarter of 2024 was $2.0 million compared with $2.5 million in the previous quarter and $2.0 million in the same quarter of 2023.

Total non-performing assets were $11.8 million at March 31, 2024, up $0.1 million from December 31, 2023 and down $0.3 million from March 31, 2023. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.09% at the end of the quarter, an increase of 1 basis point from the end of the prior quarter and flat from the same quarter of 2023.

Net loan and lease charge-offs during the first quarter of 2024 were $2.3 million or 7 basis points annualized of total average loans and leases outstanding. Net loan and lease charge-offs for the first quarter of 2024 were comprised of charge-offs of $3.8 million partially offset by recoveries of $1.5 million. Compared to the prior quarter, net loan and lease charge-offs increased by $0.6 million or 2 basis points annualized on total average loans and leases outstanding. Compared to the same quarter of 2023, net loan and lease charge-offs decreased by $0.4 million or 1 basis point annualized on total average loans and leases outstanding.

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Bank of Hawai‘i Corporation First Quarter 2024 Financial Results |  | Page 3

The allowance for credit losses on loans and leases was $147.7 million at March 31, 2024, an increase of $1.3 million from December 31, 2023 and an increase of $4.1 million from March 31, 2023. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.07% at the end of the quarter, up 2 basis points from the end of the prior quarter and up 3 basis points from the same quarter of 2023.

Balance Sheet

Total assets were $23.4 billion at March 31, 2024, a decrease of 1.3% from December 31, 2023 and a decrease of 2.1% from March 31, 2023. The decrease from the prior quarter was due to decreases in investment securities and loans and leases. The decrease from the same period in 2023 was primarily due to a decrease in our investment securities.

The investment securities portfolio was $7.3 billion at March 31, 2024, a decrease of 1.9% from December 31, 2023 and a decrease of 10.6% from March 31, 2023. This linked quarter decrease was primarily due to cashflows from the portfolio not being reinvested into securities. The decrease from the same quarter of 2023 was due to the sale of $159.1 million of investment securities in the third quarter of 2023, as well as cashflows from the portfolio not being reinvested into securities. 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 $13.9 billion at March 31, 2024, a decrease of 0.8% from December 31, 2023 and an increase of 0.2% from March 31, 2023. Total commercial loans were $5.8 billion at March 31, 2024, flat from the prior quarter and an increase of 3.8% from the same quarter of 2023. The increase from the same period in 2023 was primarily due to increases in our commercial and industrial and construction portfolios, partially offset by a decrease in our commercial mortgage portfolio. Total consumer loans were $8.1 billion as of March 31, 2024, a decrease of 1.3% from the prior quarter and a decrease of 2.2% from the same period in 2023. The decreases were primarily due to decreases in our residential mortgage and automobile portfolios.

Total deposits were $20.7 billion at March 31, 2024, a decrease of 1.8% from December 31, 2023 and an increase of 0.9% from March 31, 2023. Noninterest-bearing deposits made up 27% of total deposit balances as of March 31, 2024, down from 29% as of December 31, 2023, and down from 31% as of March 31, 2023. Average total deposits were $20.5 billion for the first quarter of 2024, down 0.8% from $20.7 billion in the prior quarter, and up 0.6% from $20.4 billion in the first quarter of 2023. As of March 31, 2024, insured and uninsured but collateralized deposits represent 58% of total deposit balances, flat from both December 31, 2023, and March 31, 2023. As of March 31, 2024, our readily available liquidity of $10.3 billion exceeded total uninsured and uncollateralized deposits.

Capital and Dividends

The Company’s capital levels increased quarter over quarter and remain well above regulatory well-capitalized minimums.

The Tier 1 Capital Ratio was 12.74% at March 31, 2024 compared with 12.56% at December 31, 2023 and 12.10% at March 31, 2023. The Tier 1 Leverage Ratio was 7.62% at March 31, 2024, up 11 basis point from 7.51% at December 31, 2023 and up 43 basis points from 7.19% at March 31, 2023. The increases were due to higher Tier 1 capital as a result of retained earnings growth and decreases in risk-weighted assets and average total assets.

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Bank of Hawai‘i Corporation First Quarter 2024 Financial Results |  | Page 4

No shares of common stock were repurchased under the share repurchase program in the first quarter of 2024. Total remaining buyback authority under the share repurchase program was $126.0 million at March 31, 2024.

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, 2024 to shareholders of record at the close of business on May 31, 2024.

On April 5, 2024, the Company announced that 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, 2024 to shareholders of record of the preferred stock as of the close of business on April 16, 2024.

Conference Call Information

The Company will review its first quarter financial results today at 8:00 a.m. Hawai‘i 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: https://register.vevent.com/register/BI974c97b30bcc401eb3a5fd9d0973e44c. A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawai‘i Time on Monday, April 22, 2024. The replay will be available on the Company's website, www.boh.com.

Investor Announcements

Investors and others should note that the Company intends to announce financial and other information to the Company’s investors using the Company’s investor relations website at https://ir.boh.com, social media channels, press releases, SEC filings and public conference calls and webcasts, all for purposes of complying with the Company’s disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, as information is updated, and new information is posted.

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, 2023 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 Hawai‘i 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 website, 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) | 2024 |  |  | 2023 |  |  | 2023 |  |
For the Period: |  |  |  |  |  |  |  |  |
Operating Results |  |  |  |  |  |  |  |  |
Net Interest Income | $ | 113,938 |  |  | $ | 115,785 |  |  | $ | 135,955 |  |
Provision for Credit Losses |  | 2,000 |  |  |  | 2,500 |  |  |  | 2,000 |  |
Total Noninterest Income |  | 42,285 |  |  |  | 42,283 |  |  |  | 40,737 |  |
Total Noninterest Expense |  | 105,859 |  |  |  | 115,962 |  |  |  | 111,919 |  |
Pre-Provision Net Revenue |  | 50,364 |  |  |  | 42,106 |  |  |  | 64,773 |  |
Net Income |  | 36,391 |  |  |  | 30,396 |  |  |  | 46,842 |  |
Net Income Available to Common Shareholders 1 |  | 34,422 |  |  |  | 28,427 |  |  |  | 44,873 |  |
Basic Earnings Per Common Share |  | 0.87 |  |  |  | 0.72 |  |  |  | 1.14 |  |
Diluted Earnings Per Common Share |  | 0.87 |  |  |  | 0.72 |  |  |  | 1.14 |  |
Dividends Declared Per Common Share |  | 0.70 |  |  |  | 0.70 |  |  |  | 0.70 |  |
Performance Ratios |  |  |  |  |  |  |  |  |
Return on Average Assets |  | 0.63 |  | % |  | 0.51 |  | % |  | 0.80 |  | %
Return on Average Shareholders' Equity |  | 10.34 |  |  |  | 8.86 |  |  |  | 14.25 |  |
Return on Average Common Equity |  | 11.20 |  |  |  | 9.55 |  |  |  | 15.79 |  |
Efficiency Ratio 2 |  | 67.76 |  |  |  | 73.36 |  |  |  | 63.34 |  |
Net Interest Margin 3 |  | 2.11 |  |  |  | 2.13 |  |  |  | 2.47 |  |
Dividend Payout Ratio 4 |  | 80.46 |  |  |  | 97.22 |  |  |  | 61.40 |  |
Average Shareholders' Equity to Average Assets |  | 6.08 |  |  |  | 5.80 |  |  |  | 5.59 |  |
Average Balances |  |  |  |  |  |  |  |  |
Average Loans and Leases | $ | 13,868,800 |  |  | $ | 13,906,114 |  |  | $ | 13,717,483 |  |
Average Assets |  | 23,281,566 |  |  |  | 23,449,215 |  |  |  | 23,865,478 |  |
Average Deposits |  | 20,543,640 |  |  |  | 20,704,070 |  |  |  | 20,430,882 |  |
Average Shareholders' Equity |  | 1,416,102 |  |  |  | 1,360,641 |  |  |  | 1,332,889 |  |
Per Share of Common Stock |  |  |  |  |  |  |  |  |
Book Value | $ | 31.62 |  |  | $ | 31.05 |  |  | $ | 29.62 |  |
Tangible Book Value |  | 30.83 |  |  |  | 30.25 |  |  |  | 28.83 |  |
Market Value |  |  |  |  |  |  |  |  |
Closing |  | 62.39 |  |  |  | 72.46 |  |  |  | 52.08 |  |
High |  | 73.73 |  |  |  | 75.19 |  |  |  | 81.73 |  |
Low |  | 58.38 |  |  |  | 45.56 |  |  |  | 34.71 |  |
| March 31, |  |  | December 31, |  |  | March 31, |  |
| 2024 |  |  | 2023 |  |  | 2023 |  |
As of Period End: |  |  |  |  |  |  |  |  |
Balance Sheet Totals |  |  |  |  |  |  |  |  |
Loans and Leases | $ | 13,853,837 |  |  | $ | 13,965,026 |  |  | $ | 13,824,522 |  |
Total Assets |  | 23,420,860 |  |  |  | 23,733,296 |  |  |  | 23,931,977 |  |
Total Deposits |  | 20,676,586 |  |  |  | 21,055,045 |  |  |  | 20,491,300 |  |
Other Debt |  | 560,163 |  |  |  | 560,190 |  |  |  | 510,269 |  |
Total Shareholders' Equity |  | 1,435,977 |  |  |  | 1,414,242 |  |  |  | 1,354,430 |  |
Asset Quality |  |  |  |  |  |  |  |  |
Non-Performing Assets | $ | 11,838 |  |  | $ | 11,747 |  |  | $ | 12,124 |  |
Allowance for Credit Losses - Loans and Leases |  | 147,664 |  |  |  | 146,403 |  |  |  | 143,577 |  |
Allowance to Loans and Leases Outstanding 5 |  | 1.07 |  | % |  | 1.05 |  | % |  | 1.04 |  | %
Capital Ratios 6 |  |  |  |  |  |  |  |  |
Common Equity Tier 1 Capital Ratio |  | 11.50 |  | % |  | 11.33 |  | % |  | 10.88 |  | %
Tier 1 Capital Ratio |  | 12.74 |  |  |  | 12.56 |  |  |  | 12.10 |  |
Total Capital Ratio |  | 13.81 |  |  |  | 13.60 |  |  |  | 13.13 |  |
Tier 1 Leverage Ratio |  | 7.62 |  |  |  | 7.51 |  |  |  | 7.19 |  |
Total Shareholders' Equity to Total Assets |  | 6.13 |  |  |  | 5.96 |  |  |  | 5.66 |  |
Tangible Common Equity to Tangible Assets 7 |  | 5.24 |  |  |  | 5.07 |  |  |  | 4.78 |  |
Tangible Common Equity to Risk-Weighted Assets 7 |  | 8.70 |  |  |  | 8.45 |  |  |  | 7.97 |  |
Non-Financial Data |  |  |  |  |  |  |  |  |
Full-Time Equivalent Employees |  | 1,891 |  |  |  | 1,899 |  |  |  | 2,025 |  |
Branches |  | 50 |  |  |  | 51 |  |  |  | 51 |  |
ATMs |  | 315 |  |  |  | 318 |  |  |  | 320 |  |
1 Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
2 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
3 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
4 Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.
5 The numerator comprises the Allowance for Credit Losses - Loans and Leases.
6 Regulatory capital ratios as of March 31, 2024 are preliminary.
7 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) | 2024 |  | 2023 |  | 2023 |
Total Shareholders' Equity | $ | 1,435,977 |  | $ | 1,414,242 |  | $ | 1,354,430 |
Less: Preferred Stock |  | 180,000 |  |  | 180,000 |  |  | 180,000 |
Goodwill |  | 31,517 |  |  | 31,517 |  |  | 31,517 |
Tangible Common Equity | $ | 1,224,460 |  | $ | 1,202,725 |  | $ | 1,142,913 |
Total Assets | $ | 23,420,860 |  | $ | 23,733,296 |  | $ | 23,931,977 |
Less: Goodwill |  | 31,517 |  |  | 31,517 |  |  | 31,517 |
Tangible Assets | $ | 23,389,343 |  | $ | 23,701,779 |  | $ | 23,900,460 |
Risk-Weighted Assets, determined in accordance |  |  |  |  |  |
with prescribed regulatory requirements 1 | $ | 14,071,841 |  | $ | 14,226,780 |  | $ | 14,341,397 |
Total Shareholders' Equity to Total Assets |  | 6.13 | % |  | 5.96 | % |  | 5.66 | %
Tangible Common Equity to Tangible Assets (Non-GAAP) |  | 5.24 | % |  | 5.07 | % |  | 4.78 | %
Tier 1 Capital Ratio 1 |  | 12.74 | % |  | 12.56 | % |  | 12.10 | %
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1 |  | 8.70 | % |  | 8.45 | % |  | 7.97 | %
1 Regulatory capital ratios as of March 31, 2024 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) | 2024 |  | 2023 |  | 2023 |  |
Interest Income |  |  |  |  |  |  |
Interest and Fees on Loans and Leases | $ | 159,336 |  | $ | 158,324 |  | $ | 136,501 |  |
Income on Investment Securities |  |  |  |  |  |  |
Available-for-Sale |  | 21,757 |  |  | 22,782 |  |  | 23,893 |  |
Held-to-Maturity |  | 22,136 |  |  | 22,589 |  |  | 23,948 |  |
Deposits |  | 30 |  |  | 23 |  |  | 27 |  |
Funds Sold |  | 6,127 |  |  | 5,705 |  |  | 3,366 |  |
Other |  | 970 |  |  | 924 |  |  | 597 |  |
Total Interest Income |  | 210,356 |  |  | 210,347 |  |  | 188,332 |  |
Interest Expense |  |  |  |  |  |  |
Deposits |  | 89,056 |  |  | 87,121 |  |  | 37,794 |  |
Securities Sold Under Agreements to Repurchase |  | 1,443 |  |  | 1,459 |  |  | 5,377 |  |
Funds Purchased |  | - |  |  | - |  |  | 704 |  |
Short-Term Borrowings |  | - |  |  | - |  |  | 3,203 |  |
Other Debt |  | 5,919 |  |  | 5,982 |  |  | 5,299 |  |
Total Interest Expense |  | 96,418 |  |  | 94,562 |  |  | 52,377 |  |
Net Interest Income |  | 113,938 |  |  | 115,785 |  |  | 135,955 |  |
Provision for Credit Losses |  | 2,000 |  |  | 2,500 |  |  | 2,000 |  |
Net Interest Income After Provision for Credit Losses |  | 111,938 |  |  | 113,285 |  |  | 133,955 |  |
Noninterest Income |  |  |  |  |  |  |
Trust and Asset Management |  | 11,189 |  |  | 11,144 |  |  | 10,690 |  |
Mortgage Banking |  | 951 |  |  | 1,016 |  |  | 1,004 |  |
Service Charges on Deposit Accounts |  | 7,947 |  |  | 7,949 |  |  | 7,737 |  |
Fees, Exchange, and Other Service Charges |  | 14,123 |  |  | 13,774 |  |  | 13,808 |  |
Investment Securities Losses, Net |  | (1,497 | ) |  | (1,619 | ) |  | (1,792 | ) |
Annuity and Insurance |  | 1,046 |  |  | 1,271 |  |  | 1,271 |  |
Bank-Owned Life Insurance |  | 3,356 |  |  | 3,176 |  |  | 2,842 |  |
Other |  | 5,170 |  |  | 5,572 |  |  | 5,177 |  |
Total Noninterest Income |  | 42,285 |  |  | 42,283 |  |  | 40,737 |  |
Noninterest Expense |  |  |  |  |  |  |
Salaries and Benefits |  | 58,215 |  |  | 53,991 |  |  | 65,088 |  |
Net Occupancy |  | 10,456 |  |  | 9,734 |  |  | 9,872 |  |
Net Equipment |  | 10,103 |  |  | 9,826 |  |  | 10,375 |  |
Data Processing |  | 4,770 |  |  | 4,948 |  |  | 4,583 |  |
Professional Fees |  | 4,677 |  |  | 5,079 |  |  | 3,883 |  |
FDIC Insurance |  | 3,614 |  |  | 18,545 |  |  | 3,234 |  |
Other |  | 14,024 |  |  | 13,839 |  |  | 14,884 |  |
Total Noninterest Expense |  | 105,859 |  |  | 115,962 |  |  | 111,919 |  |
Income Before Provision for Income Taxes |  | 48,364 |  |  | 39,606 |  |  | 62,773 |  |
Provision for Income Taxes |  | 11,973 |  |  | 9,210 |  |  | 15,931 |  |
Net Income | $ | 36,391 |  | $ | 30,396 |  | $ | 46,842 |  |
Preferred Stock Dividends |  | 1,969 |  |  | 1,969 |  |  | 1,969 |  |
Net Income Available to Common Shareholders | $ | 34,422 |  | $ | 28,427 |  | $ | 44,873 |  |
Basic Earnings Per Common Share | $ | 0.87 |  | $ | 0.72 |  | $ | 1.14 |  |
Diluted Earnings Per Common Share | $ | 0.87 |  | $ | 0.72 |  | $ | 1.14 |  |
Dividends Declared Per Common Share | $ | 0.70 |  | $ | 0.70 |  | $ | 0.70 |  |
Basic Weighted Average Common Shares |  | 39,350,390 |  |  | 39,303,525 |  |  | 39,276,833 |  |
Diluted Weighted Average Common Shares |  | 39,626,463 |  |  | 39,539,191 |  |  | 39,465,889 |  |

Bank of Hawai‘i Corporation and Subsidiaries |
Consolidated Statements of Comprehensive Income |  |  |  | Table 4
|  | Three Months Ended |
|  | March 31, |  | December 31, |  | March 31, |
(dollars in thousands) |  | 2024 |  | 2023 |  | 2023 |
Net Income | $ | 36,391 | $ | 30,396 | $ | 46,842 |
Other Comprehensive Income, Net of Tax: |  |  |  |  |  |  |
Net Unrealized Gains on Investment Securities |  | 12,938 |  | 43,357 |  | 29,276 |
Defined Benefit Plans |  | 169 |  | 1,566 |  | 84 |
Other Comprehensive Income |  | 13,107 |  | 44,923 |  | 29,360 |
Comprehensive Income | $ | 49,498 | $ | 75,319 | $ | 76,202 |

Bank of Hawai‘i Corporation and Subsidiaries |  |  |  |  |
Consolidated Statements of Condition |  |  |  | Table 5 |
| March 31, |  | December 31, |  | March 31, |
(dollars in thousands) | 2024 |  | 2023 |  | 2023 |
Assets |  |  |  |  |  |
Interest-Bearing Deposits in Other Banks | $ | 2,742 |  | $ | 2,761 |  | $ | 2,554 |
Funds Sold |  | 673,489 |  |  | 690,112 |  |  | 272,018 |
Investment Securities |  |  |  |  |  |
Available-for-Sale |  | 2,352,051 |  |  | 2,408,933 |  |  | 2,815,083 |
Held-to-Maturity (Fair Value of $4,104,622; $4,253,637; and $4,601,876) |  | 4,913,457 |  |  | 4,997,335 |  |  | 5,312,815 |
Loans Held for Sale |  | 2,182 |  |  | 3,124 |  |  | 2,149 |
Loans and Leases |  | 13,853,837 |  |  | 13,965,026 |  |  | 13,824,522 |
Allowance for Credit Losses |  | (147,664 | ) |  | (146,403 | ) |  | (143,577 | )
Net Loans and Leases |  | 13,706,173 |  |  | 13,818,623 |  |  | 13,680,945 |
Total Earning Assets |  | 21,650,094 |  |  | 21,920,888 |  |  | 22,085,564 |
Cash and Due from Banks |  | 215,290 |  |  | 308,071 |  |  | 337,413 |
Premises and Equipment, Net |  | 192,486 |  |  | 194,855 |  |  | 203,131 |
Operating Lease Right-of-Use Assets |  | 85,501 |  |  | 86,110 |  |  | 91,387 |
Accrued Interest Receivable |  | 67,887 |  |  | 66,525 |  |  | 63,175 |
Foreclosed Real Estate |  | 2,672 |  |  | 2,098 |  |  | 1,040 |
Mortgage Servicing Rights |  | 20,422 |  |  | 20,880 |  |  | 22,102 |
Goodwill |  | 31,517 |  |  | 31,517 |  |  | 31,517 |
Bank-Owned Life Insurance |  | 468,206 |  |  | 462,894 |  |  | 455,602 |
Other Assets |  | 686,785 |  |  | 639,458 |  |  | 641,046 |
Total Assets | $ | 23,420,860 |  | $ | 23,733,296 |  | $ | 23,931,977 |
Liabilities |  |  |  |  |  |
Deposits |  |  |  |  |  |
Noninterest-Bearing Demand | $ | 5,542,930 |  | $ | 6,058,554 |  | $ | 6,385,872 |
Interest-Bearing Demand |  | 3,823,224 |  |  | 3,749,717 |  |  | 4,283,801 |
Savings |  | 8,231,245 |  |  | 8,189,472 |  |  | 7,898,874 |
Time |  | 3,079,187 |  |  | 3,057,302 |  |  | 1,922,753 |
Total Deposits |  | 20,676,586 |  |  | 21,055,045 |  |  | 20,491,300 |
Short-Term Borrowings |  | - |  |  | - |  |  | 325,000 |
Securities Sold Under Agreements to Repurchase |  | 150,490 |  |  | 150,490 |  |  | 725,490 |
Other Debt |  | 560,163 |  |  | 560,190 |  |  | 510,269 |
Operating Lease Liabilities |  | 94,104 |  |  | 94,693 |  |  | 99,746 |
Retirement Benefits Payable |  | 23,365 |  |  | 23,673 |  |  | 26,768 |
Accrued Interest Payable |  | 37,081 |  |  | 41,023 |  |  | 13,061 |
Taxes Payable |  | 7,378 |  |  | 7,636 |  |  | 11,039 |
Other Liabilities |  | 435,716 |  |  | 386,304 |  |  | 374,874 |
Total Liabilities |  | 21,984,883 |  |  | 22,319,054 |  |  | 22,577,547 |
Shareholders' Equity |  |  |  |  |  |
Preferred Stock ($.01 par value; authorized 180,000 shares; |  |  |  |  |  |
issued / outstanding: March 31, 2024; December 31, 2023; |  |  |  |  |  |
and March 31, 2023 - 180,000) |  | 180,000 |  |  | 180,000 |  |  | 180,000 |
Common Stock ($.01 par value; authorized 500,000,000 shares; |  |  |  |  |  |
issued / outstanding: March 31, 2024 - 58,753,708 / 39,720,724; |  |  |  |  |  |
December 31, 2023 - 58,755,465 / 39,753,138; and March 31, 2023 - 58,722,929 / 39,646,506) |  | 584 |  |  | 583 |  |  | 583 |
Capital Surplus |  | 640,663 |  |  | 636,422 |  |  | 624,126 |
Accumulated Other Comprehensive Loss |  | (383,581 | ) |  | (396,688 | ) |  | (405,298 | )
Retained Earnings |  | 2,114,729 |  |  | 2,107,569 |  |  | 2,074,428 |
Treasury Stock, at Cost (Shares: March 31, 2024 - 19,032,984; December 31, 2023 - 19,002,327; |  |  |  |  |  |
and March 31, 2023 - 19,076,423) |  | (1,116,418 | ) |  | (1,113,644 | ) |  | (1,119,409 | )
Total Shareholders' Equity |  | 1,435,977 |  |  | 1,414,242 |  |  | 1,354,430 |
Total Liabilities and Shareholders' Equity | $ | 23,420,860 |  | $ | 23,733,296 |  | $ | 23,931,977 |

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, 2023 |  | 180,000 |  | $ | 180,000 |  |  | 39,753,138 |  | $ | 583 |  | $ | 636,422 |  | $ | (396,688 | ) | $ | 2,107,569 |  | $ | (1,113,644 | ) | $ | 1,414,242 |
Net Income |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 36,391 |  |  | - |  |  | 36,391 |
Other Comprehensive Income |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 13,107 |  |  | - |  |  | - |  |  | 13,107 |
Share-Based Compensation |  | - |  |  | - |  |  | - |  |  | - |  |  | 4,030 |  |  | - |  |  | - |  |  | - |  |  | 4,030 |
Common Stock Issued under Purchase and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity Compensation Plans |  | - |  |  | - |  |  | 21,332 |  |  | 1 |  |  | 211 |  |  | - |  |  | 794 |  |  | 546 |  |  | 1,552 |
Common Stock Repurchased |  | - |  |  | - |  |  | (53,746 | ) |  | - |  |  | - |  |  | - |  |  | - |  |  | (3,320 | ) |  | (3,320 | )
Cash Dividends Declared Common Stock ($0.70 per share) |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (28,056 | ) |  | - |  |  | (28,056 | )
Cash Dividends Declared Preferred Stock |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (1,969 | ) |  | - |  |  | (1,969 | )
Balance as of March 31, 2024 |  | 180,000 |  | $ | 180,000 |  |  | 39,720,724 |  | $ | 584 |  | $ | 640,663 |  | $ | (383,581 | ) | $ | 2,114,729 |  | $ | (1,116,418 | ) | $ | 1,435,977 |
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 |

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, 2024 |  |  | December 31, 2023 |  |  | March 31, 2023 |  |
| 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 | $ | 4.8 |  | $ | - |  |  | 2.51 |  | % | $ | 4.3 |  | $ | - |  |  | 2.08 |  | % | $ | 1.7 |  | $ | - |  |  | 6.25 |  | %
Funds Sold |  | 455.9 |  |  | 6.1 |  |  | 5.32 |  |  |  | 415.0 |  |  | 5.7 |  |  | 5.38 |  |  |  | 295.9 |  |  | 3.4 |  |  | 4.55 |  |
Investment Securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable |  | 2,380.4 |  |  | 21.8 |  |  | 3.66 |  |  |  | 2,362.4 |  |  | 22.8 |  |  | 3.84 |  |  |  | 2,820.3 |  |  | 23.8 |  |  | 3.40 |  |
Non-Taxable |  | 1.7 |  |  | - |  |  | 1.99 |  |  |  | 1.8 |  |  | - |  |  | 1.90 |  |  |  | 9.6 |  |  | 0.1 |  |  | 4.38 |  |
Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable |  | 4,926.8 |  |  | 21.9 |  |  | 1.79 |  |  |  | 5,013.6 |  |  | 22.4 |  |  | 1.79 |  |  |  | 5,336.2 |  |  | 23.8 |  |  | 1.78 |  |
Non-Taxable |  | 34.7 |  |  | 0.2 |  |  | 2.10 |  |  |  | 34.9 |  |  | 0.2 |  |  | 2.10 |  |  |  | 35.3 |  |  | 0.2 |  |  | 2.10 |  |
Total Investment Securities |  | 7,343.6 |  |  | 43.9 |  |  | 2.40 |  |  |  | 7,412.7 |  |  | 45.4 |  |  | 2.45 |  |  |  | 8,201.4 |  |  | 47.9 |  |  | 2.34 |  |
Loans Held for Sale |  | 2.2 |  |  | - |  |  | 6.17 |  |  |  | 3.8 |  |  | 0.1 |  |  | 6.89 |  |  |  | 1.5 |  |  | - |  |  | 5.30 |  |
Loans and Leases 3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and Industrial |  | 1,652.5 |  |  | 22.0 |  |  | 5.36 |  |  |  | 1,603.5 |  |  | 21.3 |  |  | 5.27 |  |  |  | 1,411.4 |  |  | 16.2 |  |  | 4.67 |  |
Paycheck Protection Program |  | 10.8 |  |  | - |  |  | 1.40 |  |  |  | 11.9 |  |  | - |  |  | 1.36 |  |  |  | 16.9 |  |  | 0.1 |  |  | 2.35 |  |
Commercial Mortgage |  | 3,716.6 |  |  | 50.5 |  |  | 5.46 |  |  |  | 3,760.1 |  |  | 51.5 |  |  | 5.42 |  |  |  | 3,736.9 |  |  | 45.1 |  |  | 4.90 |  |
Construction |  | 307.9 |  |  | 5.6 |  |  | 7.27 |  |  |  | 279.5 |  |  | 4.8 |  |  | 6.84 |  |  |  | 280.4 |  |  | 3.9 |  |  | 5.65 |  |
Commercial Lease Financing |  | 58.4 |  |  | 0.3 |  |  | 1.87 |  |  |  | 60.1 |  |  | 0.3 |  |  | 1.95 |  |  |  | 66.9 |  |  | - |  |  | (0.14 | ) |
Residential Mortgage |  | 4,649.9 |  |  | 45.0 |  |  | 3.87 |  |  |  | 4,676.0 |  |  | 45.1 |  |  | 3.86 |  |  |  | 4,666.0 |  |  | 39.9 |  |  | 3.42 |  |
Home Equity |  | 2,250.1 |  |  | 21.1 |  |  | 3.78 |  |  |  | 2,276.2 |  |  | 20.9 |  |  | 3.65 |  |  |  | 2,239.4 |  |  | 18.2 |  |  | 3.30 |  |
Automobile |  | 831.0 |  |  | 8.9 |  |  | 4.30 |  |  |  | 845.7 |  |  | 8.6 |  |  | 4.02 |  |  |  | 871.8 |  |  | 7.3 |  |  | 3.37 |  |
Other 4 |  | 391.6 |  |  | 6.5 |  |  | 6.66 |  |  |  | 393.1 |  |  | 6.3 |  |  | 6.40 |  |  |  | 427.8 |  |  | 6.2 |  |  | 5.83 |  |
Total Loans and Leases |  | 13,868.8 |  |  | 159.9 |  |  | 4.63 |  |  |  | 13,906.1 |  |  | 158.8 |  |  | 4.54 |  |  |  | 13,717.5 |  |  | 136.9 |  |  | 4.03 |  |
Other |  | 62.3 |  |  | 1.1 |  |  | 6.23 |  |  |  | 60.0 |  |  | 1.0 |  |  | 6.16 |  |  |  | 67.2 |  |  | 0.6 |  |  | 3.56 |  |
Total Earning Assets |  | 21,737.6 |  |  | 211.0 |  |  | 3.89 |  |  |  | 21,801.9 |  |  | 211.0 |  |  | 3.85 |  |  |  | 22,285.2 |  |  | 188.8 |  |  | 3.42 |  |
Cash and Due from Banks |  | 240.8 |  |  |  |  |  |  |  | 243.8 |  |  |  |  |  |  |  | 319.1 |  |  |  |  |  |
Other Assets |  | 1,303.2 |  |  |  |  |  |  |  | 1,403.5 |  |  |  |  |  |  |  | 1,261.2 |  |  |  |  |  |
Total Assets | $ | 23,281.6 |  |  |  |  |  |  | $ | 23,449.2 |  |  |  |  |  |  | $ | 23,865.5 |  |  |  |  |  |
Interest-Bearing Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-Bearing Deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Demand | $ | 3,764.2 |  |  | 7.7 |  |  | 0.82 |  |  | $ | 3,737.3 |  |  | 7.7 |  |  | 0.82 |  |  | $ | 4,215.9 |  |  | 5.2 |  |  | 0.50 |  |
Savings |  | 8,131.3 |  |  | 49.4 |  |  | 2.44 |  |  |  | 8,441.0 |  |  | 51.1 |  |  | 2.40 |  |  |  | 8,009.0 |  |  | 20.6 |  |  | 1.05 |  |
Time |  | 3,081.1 |  |  | 32.0 |  |  | 4.18 |  |  |  | 2,830.0 |  |  | 28.3 |  |  | 3.97 |  |  |  | 1,789.9 |  |  | 12.0 |  |  | 2.71 |  |
Total Interest-Bearing Deposits |  | 14,976.6 |  |  | 89.1 |  |  | 2.39 |  |  |  | 15,008.3 |  |  | 87.1 |  |  | 2.30 |  |  |  | 14,014.8 |  |  | 37.8 |  |  | 1.09 |  |
Funds Purchased |  | - |  |  | - |  |  | - |  |  |  | - |  |  | - |  |  | - |  |  |  | 60.4 |  |  | 0.7 |  |  | 4.66 |  |
Short-Term Borrowings |  | - |  |  | - |  |  | - |  |  |  | - |  |  | - |  |  | - |  |  |  | 265.0 |  |  | 3.2 |  |  | 4.84 |  |
Securities Sold Under Agreements to Repurchase |  | 150.5 |  |  | 1.4 |  |  | 3.79 |  |  |  | 150.5 |  |  | 1.5 |  |  | 3.79 |  |  |  | 725.5 |  |  | 5.4 |  |  | 2.96 |  |
Other Debt |  | 560.1 |  |  | 5.9 |  |  | 4.25 |  |  |  | 560.2 |  |  | 6.0 |  |  | 4.24 |  |  |  | 499.6 |  |  | 5.3 |  |  | 4.30 |  |
Total Interest-Bearing Liabilities |  | 15,687.2 |  |  | 96.4 |  |  | 2.47 |  |  |  | 15,719.0 |  |  | 94.6 |  |  | 2.39 |  |  |  | 15,565.3 |  |  | 52.4 |  |  | 1.36 |  |
Net Interest Income |  |  | $ | 114.6 |  |  |  |  |  |  | $ | 116.4 |  |  |  |  |  |  | $ | 136.4 |  |  |  |
Interest Rate Spread |  |  |  |  |  | 1.42 |  | % |  |  |  |  |  | 1.46 |  | % |  |  |  |  |  | 2.06 |  | %
Net Interest Margin |  |  |  |  |  | 2.11 |  | % |  |  |  |  |  | 2.13 |  | % |  |  |  |  |  | 2.47 |  | %
Noninterest-Bearing Demand Deposits |  | 5,567.0 |  |  |  |  |  |  |  | 5,695.8 |  |  |  |  |  |  |  | 6,416.1 |  |  |  |  |  |
Other Liabilities |  | 611.3 |  |  |  |  |  |  |  | 673.8 |  |  |  |  |  |  |  | 551.2 |  |  |  |  |  |
Shareholders' Equity |  | 1,416.1 |  |  |  |  |  |  |  | 1,360.6 |  |  |  |  |  |  |  | 1,332.9 |  |  |  |  |  |
Total Liabilities and Shareholders' Equity | $ | 23,281.6 |  |  |  |  |  |  | $ | 23,449.2 |  |  |  |  |  |  | $ | 23,865.5 |  |  |  |  |  |
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 $690,000, $605,000, and $495,000
for the three months ended March 31, 2024, December 31, 2023, and March 31, 2023, 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, 2024 |
| Compared to December 31, 2023 |
(dollars in millions) | Volume 1 |  | Rate 1 |  | Total |
Change in Interest Income: |  |  |  |  |  |
Funds Sold | $ | 0.5 |  | $ | (0.1 | ) | $ | 0.4 |
Investment Securities |  |  |  |  |  |
Available-for-Sale |  |  |  |  |  |
Taxable |  | (0.4 | ) |  | (0.6 | ) |  | (1.0 | )
Held-to-Maturity |  |  |  |  |  |
Taxable |  | (0.4 | ) |  | (0.1 | ) |  | (0.5 | )
Total Investment Securities |  | (0.8 | ) |  | (0.7 | ) |  | (1.5 | )
Loans Held for Sale |  | (0.1 | ) |  | - |  |  | (0.1 | )
Loans and Leases |  |  |  |  |  |
Commercial and Industrial |  | 0.4 |  |  | 0.3 |  |  | 0.7 |
Commercial Mortgage |  | (1.0 | ) |  | - |  |  | (1.0 | )
Construction |  | 0.5 |  |  | 0.3 |  |  | 0.8 |
Residential Mortgage |  | (0.3 | ) |  | 0.2 |  |  | (0.1 | )
Home Equity |  | (0.3 | ) |  | 0.5 |  |  | 0.2 |
Automobile |  | (0.2 | ) |  | 0.5 |  |  | 0.3 |
Other 2 |  | - |  |  | 0.2 |  |  | 0.2 |
Total Loans and Leases |  | (0.9 | ) |  | 2.0 |  |  | 1.1 |
Other |  | 0.1 |  |  | - |  |  | 0.1 |
Total Change in Interest Income |  | (1.2 | ) |  | 1.2 |  |  | - |
Change in Interest Expense: |  |  |  |  |  |
Interest-Bearing Deposits |  |  |  |  |  |
Savings |  | (2.3 | ) |  | 0.6 |  |  | (1.7 | )
Time |  | 2.3 |  |  | 1.4 |  |  | 3.7 |
Total Interest-Bearing Deposits |  | - |  |  | 2.0 |  |  | 2.0 |
Securities Sold Under Agreements to Repurchase |  | - |  |  | (0.1 | ) |  | (0.1 | )
Other Debt |  | - |  |  | (0.1 | ) |  | (0.1 | )
Total Change in Interest Expense |  | - |  |  | 1.8 |  |  | 1.8 |
Change in Net Interest Income | $ | (1.2 | ) | $ | (0.6 | ) | $ | (1.8 | )
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, 2024 |
| Compared to March 31, 2023 |
(dollars in millions) | Volume 1 |  | Rate 1 |  | Total |
Change in Interest Income: |  |  |  |  |  |
Funds Sold | $ | 2.0 |  | $ | 0.7 |  | $ | 2.7 |
Investment Securities |  |  |  |  |  |
Available-for-Sale |  |  |  |  |  |
Taxable |  | (3.8 | ) |  | 1.8 |  |  | (2.0 | )
Non-Taxable |  | (0.1 | ) |  | - |  |  | (0.1 | )
Held-to-Maturity |  |  |  |  |  |
Taxable |  | (1.8 | ) |  | (0.1 | ) |  | (1.9 | )
Total Investment Securities |  | (5.7 | ) |  | 1.7 |  |  | (4.0 | )
Loans and Leases |  |  |  |  |  |
Commercial and Industrial |  | 3.1 |  |  | 2.7 |  |  | 5.8 |
Paycheck Protection Program |  | (0.1 | ) |  | - |  |  | (0.1 | )
Commercial Mortgage |  | (0.2 | ) |  | 5.6 |  |  | 5.4 |
Construction |  | 0.5 |  |  | 1.2 |  |  | 1.7 |
Commercial Lease Financing |  | - |  |  | 0.3 |  |  | 0.3 |
Residential Mortgage |  | (0.2 | ) |  | 5.3 |  |  | 5.1 |
Home Equity |  | 0.1 |  |  | 2.8 |  |  | 2.9 |
Automobile |  | (0.4 | ) |  | 2.0 |  |  | 1.6 |
Other 2 |  | (0.5 | ) |  | 0.8 |  |  | 0.3 |
Total Loans and Leases |  | 2.3 |  |  | 20.7 |  |  | 23.0 |
Other |  | (0.1 | ) |  | 0.6 |  |  | 0.5 |
Total Change in Interest Income |  | (1.5 | ) |  | 23.7 |  |  | 22.2 |
Change in Interest Expense: |  |  |  |  |  |
Interest-Bearing Deposits |  |  |  |  |  |
Demand |  | (0.6 | ) |  | 3.1 |  |  | 2.5 |
Savings |  | 0.3 |  |  | 28.5 |  |  | 28.8 |
Time |  | 11.5 |  |  | 8.5 |  |  | 20.0 |
Total Interest-Bearing Deposits |  | 11.2 |  |  | 40.1 |  |  | 51.3 |
Funds Purchased |  | (0.7 | ) |  | - |  |  | (0.7 | )
Short-Term Borrowings |  | (3.2 | ) |  | - |  |  | (3.2 | )
Securities Sold Under Agreements to Repurchase |  | (5.2 | ) |  | 1.2 |  |  | (4.0 | )
Other Debt |  | 0.7 |  |  | (0.1 | ) |  | 0.6 |
Total Change in Interest Expense |  | 2.8 |  |  | 41.2 |  |  | 44.0 |
Change in Net Interest Income | $ | (4.3 | ) | $ | (17.5 | ) | $ | (21.8 | )
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 |
Salaries and Benefits |  | Table 9
|  | Three Months Ended |
|  | March 31, |  | December 31, |  | March 31, |
(dollars in thousands) |  | 2024 |  | 2023 |  | 2023 |
Salaries | $ | 38,031 | $ | 38,492 | $ | 38,617 |
Incentive Compensation |  | 3,090 |  | 3,402 |  | 3,997 |
Share-Based Compensation |  | 3,799 |  | 3,443 |  | 3,159 |
Commission Expense |  | 572 |  | 700 |  | 647 |
Retirement and Other Benefits |  | 4,299 |  | 2,521 |  | 5,888 |
Payroll Taxes |  | 4,730 |  | 2,598 |  | 5,848 |
Medical, Dental, and Life Insurance |  | 3,212 |  | 2,500 |  | 3,864 |
Separation Expense |  | 482 |  | 335 |  | 3,068 |
Total Salaries and Benefits | $ | 58,215 | $ | 53,991 | $ | 65,088 |

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) | 2024 |  | 2023 |  | 2023 |  | 2023 |  | 2023 |
Commercial |  |  |  |  |  |  |  |  |  |
Commercial and Industrial | $ | 1,669,482 |  | $ | 1,652,699 |  | $ | 1,569,572 |  | $ | 1,502,676 |  | $ | 1,425,916 |
Paycheck Protection Program |  | 10,177 |  |  | 11,369 |  |  | 12,529 |  |  | 13,789 |  |  | 15,175 |
Commercial Mortgage |  | 3,715,032 |  |  | 3,749,016 |  |  | 3,784,339 |  |  | 3,796,769 |  |  | 3,826,283 |
Construction |  | 323,069 |  |  | 304,463 |  |  | 251,507 |  |  | 236,428 |  |  | 232,903 |
Lease Financing |  | 57,817 |  |  | 59,939 |  |  | 61,522 |  |  | 62,779 |  |  | 65,611 |
Total Commercial |  | 5,775,577 |  |  | 5,777,486 |  |  | 5,679,469 |  |  | 5,612,441 |  |  | 5,565,888 |
Consumer |  |  |  |  |  |  |  |  |  |
Residential Mortgage |  | 4,616,900 |  |  | 4,684,171 |  |  | 4,699,140 |  |  | 4,721,976 |  |  | 4,691,298 |
Home Equity |  | 2,240,946 |  |  | 2,264,827 |  |  | 2,285,974 |  |  | 2,278,105 |  |  | 2,260,001 |
Automobile |  | 825,854 |  |  | 837,830 |  |  | 856,113 |  |  | 878,767 |  |  | 877,979 |
Other 1 |  | 394,560 |  |  | 400,712 |  |  | 398,795 |  |  | 423,600 |  |  | 429,356 |
Total Consumer |  | 8,078,260 |  |  | 8,187,540 |  |  | 8,240,022 |  |  | 8,302,448 |  |  | 8,258,634 |
Total Loans and Leases | $ | 13,853,837 |  | $ | 13,965,026 |  | $ | 13,919,491 |  | $ | 13,914,889 |  | $ | 13,824,522 |
1 Comprised of other revolving credit, installment, and lease financing. |
Deposits |  |  |  |  |  |  |  |  |  |
| March 31, |  | December 31, |  | September 30, |  | June 30, |  | March 31, |
(dollars in thousands) | 2024 |  | 2023 |  | 2023 |  | 2023 |  | 2023 |
Consumer | $ | 10,429,004 |  | $ | 10,319,809 |  | $ | 10,036,261 |  | $ | 10,018,931 |  | $ | 10,158,833 |
Commercial |  | 8,323,330 |  |  | 8,601,224 |  |  | 8,564,536 |  |  | 8,019,971 |  |  | 8,594,441 |
Public and Other |  | 1,924,252 |  |  | 2,134,012 |  |  | 2,201,512 |  |  | 2,469,713 |  |  | 1,738,026 |
Total Deposits | $ | 20,676,586 |  | $ | 21,055,045 |  | $ | 20,802,309 |  | $ | 20,508,615 |  | $ | 20,491,300 |
Average Deposits |  |  |  |  |  |  |  |  |  |
| Three Months Ended |
| March 31, |  | December 31, |  | September 30, |  | June 30, |  | March 31, |
(dollars in thousands) | 2024 |  | 2023 |  | 2023 |  | 2023 |  | 2023 |
Consumer | $ | 10,313,730 |  | $ | 10,092,727 |  | $ | 9,963,690 |  | $ | 9,977,239 |  | $ | 10,178,988 |
Commercial |  | 8,334,540 |  |  | 8,581,426 |  |  | 8,288,891 |  |  | 8,138,358 |  |  | 8,611,960 |
Public and Other |  | 1,895,370 |  |  | 2,029,917 |  |  | 2,239,501 |  |  | 1,903,004 |  |  | 1,639,934 |
Total Deposits | $ | 20,543,640 |  | $ | 20,704,070 |  | $ | 20,492,082 |  | $ | 20,018,601 |  | $ | 20,430,882 |

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) | 2024 |  | 2023 |  | 2023 |  | 2023 |  | 2023 |
Non-Performing Assets |  |  |  |  |  |  |  |  |  |
Non-Accrual Loans and Leases |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |
Commercial and Industrial | $ | 13 |  | $ | 39 |  | $ | 43 |  | $ | 17 |  | $ | 31 |
Commercial Mortgage |  | 2,714 |  |  | 2,884 |  |  | 2,996 |  |  | 3,107 |  |  | 3,216 |
Total Commercial |  | 2,727 |  |  | 2,923 |  |  | 3,039 |  |  | 3,124 |  |  | 3,247 |
Consumer |  |  |  |  |  |  |  |  |  |
Residential Mortgage |  | 3,199 |  |  | 2,935 |  |  | 3,706 |  |  | 3,504 |  |  | 4,199 |
Home Equity |  | 3,240 |  |  | 3,791 |  |  | 3,734 |  |  | 3,809 |  |  | 3,638 |
Total Consumer |  | 6,439 |  |  | 6,726 |  |  | 7,440 |  |  | 7,313 |  |  | 7,837 |
Total Non-Accrual Loans and Leases |  | 9,166 |  |  | 9,649 |  |  | 10,479 |  |  | 10,437 |  |  | 11,084 |
Foreclosed Real Estate |  | 2,672 |  |  | 2,098 |  |  | 1,040 |  |  | 1,040 |  |  | 1,040 |
Total Non-Performing Assets | $ | 11,838 |  | $ | 11,747 |  | $ | 11,519 |  | $ | 11,477 |  | $ | 12,124 |
Accruing Loans and Leases Past Due 90 Days or More |  |  |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |  |  |
Residential Mortgage | $ | 3,378 |  | $ | 3,814 |  | $ | 3,519 |  | $ | 3,560 |  | $ | 4,566 |
Home Equity |  | 1,580 |  |  | 1,734 |  |  | 2,172 |  |  | 2,022 |  |  | 1,723 |
Automobile |  | 517 |  |  | 399 |  |  | 393 |  |  | 577 |  |  | 598 |
Other 1 |  | 872 |  |  | 648 |  |  | 643 |  |  | 633 |  |  | 632 |
Total Consumer |  | 6,347 |  |  | 6,595 |  |  | 6,727 |  |  | 6,792 |  |  | 7,519 |
Total Accruing Loans and Leases Past Due 90 Days or More | $ | 6,347 |  | $ | 6,595 |  | $ | 6,727 |  | $ | 6,792 |  | $ | 7,519 |
Total Loans and Leases | $ | 13,853,837 |  | $ | 13,965,026 |  | $ | 13,919,491 |  | $ | 13,914,889 |  | $ | 13,824,522 |
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases |  | 0.07 | % |  | 0.07 | % |  | 0.08 | % |  | 0.08 | % |  | 0.08 | %
Ratio of Non-Performing Assets to Total Loans and Leases |  |  |  |  |  |  |  |  |  |
and Foreclosed Real Estate |  | 0.09 | % |  | 0.08 | % |  | 0.08 | % |  | 0.08 | % |  | 0.09 | %
Ratio of Non-Performing Assets to Total Assets |  | 0.05 | % |  | 0.05 | % |  | 0.05 | % |  | 0.04 | % |  | 0.05 | %
Ratio of Commercial Non-Performing Assets to Total Commercial Loans |  |  |  |  |  |  |  |  |  |
and Leases and Commercial Foreclosed Real Estate |  | 0.05 | % |  | 0.05 | % |  | 0.05 | % |  | 0.06 | % |  | 0.06 | %
Ratio of Consumer Non-Performing Assets to Total Consumer Loans |  |  |  |  |  |  |  |  |  |
and Leases and Consumer Foreclosed Real Estate |  | 0.11 | % |  | 0.11 | % |  | 0.10 | % |  | 0.10 | % |  | 0.11 | %
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 |  | 0.13 | % |  | 0.13 | % |  | 0.13 | % |  | 0.13 | % |  | 0.14 | %
Quarter to Quarter Changes in Non-Performing Assets |  |  |  |  |  |  |  |  |  |
Balance at Beginning of Quarter | $ | 11,747 |  | $ | 11,519 |  | $ | 11,477 |  | $ | 12,124 |  | $ | 12,647 |
Additions |  | 1,652 |  |  | 2,683 |  |  | 1,318 |  |  | 1,116 |  |  | 552 |
Reductions |  |  |  |  |  |  |  |  |  |
Payments |  | (921 | ) |  | (2,018 | ) |  | (1,017 | ) |  | (226 | ) |  | (778 | )
Return to Accrual Status |  | (617 | ) |  | (437 | ) |  | (259 | ) |  | (1,527 | ) |  | (297 | )
Charge-offs / Write-downs |  | (23 | ) |  | - |  |  | - |  |  | (10 | ) |  | - |
Total Reductions |  | (1,561 | ) |  | (2,455 | ) |  | (1,276 | ) |  | (1,763 | ) |  | (1,075 | )
Balance at End of Quarter | $ | 11,838 |  | $ | 11,747 |  | $ | 11,519 |  | $ | 11,477 |  | $ | 12,124 |
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) | 2024 |  | 2023 |  | 2023 |  |
Balance at Beginning of Period | $ | 152,429 |  | $ | 151,653 |  | $ | 151,247 |  |
Loans and Leases Charged-Off |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |
Commercial and Industrial |  | (360 | ) |  | (229 | ) |  | (261 | ) |
Consumer |  |  |  |  |  |  |
Home Equity |  | (35 | ) |  | (14 | ) |  | (50 | ) |
Automobile |  | (1,048 | ) |  | (938 | ) |  | (1,663 | ) |
Other 1 |  | (2,312 | ) |  | (2,349 | ) |  | (2,335 | ) |
Total Loans and Leases Charged-Off |  | (3,755 | ) |  | (3,530 | ) |  | (4,309 | ) |
Recoveries on Loans and Leases Previously Charged-Off |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |
Commercial and Industrial |  | 116 |  |  | 125 |  |  | 50 |  |
Consumer |  |  |  |  |  |  |
Residential Mortgage |  | 42 |  |  | 301 |  |  | 61 |  |
Home Equity |  | 184 |  |  | 180 |  |  | 184 |  |
Automobile |  | 526 |  |  | 612 |  |  | 672 |  |
Other 1 |  | 606 |  |  | 588 |  |  | 674 |  |
Total Recoveries on Loans and Leases Previously Charged-Off |  | 1,474 |  |  | 1,806 |  |  | 1,641 |  |
Net Charged-Off - Loans and Leases |  | (2,281 | ) |  | (1,724 | ) |  | (2,668 | ) |
Provision for Credit Losses: |  |  |  |  |  |  |
Loans and Leases |  | 3,542 |  |  | 2,864 |  |  | 1,806 |  |
Unfunded Commitments |  | (1,542 | ) |  | (364 | ) |  | 194 |  |
Total Provision for Credit Losses |  | 2,000 |  |  | 2,500 |  |  | 2,000 |  |
Balance at End of Period | $ | 152,148 |  | $ | 152,429 |  | $ | 150,579 |  |
Components |  |  |  |  |  |  |
Allowance for Credit Losses - Loans and Leases | $ | 147,664 |  | $ | 146,403 |  | $ | 143,577 |  |
Reserve for Unfunded Commitments |  | 4,484 |  |  | 6,026 |  |  | 7,002 |  |
Total Reserve for Credit Losses | $ | 152,148 |  | $ | 152,429 |  | $ | 150,579 |  |
Average Loans and Leases Outstanding | $ | 13,868,800 |  | $ | 13,906,114 |  | $ | 13,717,483 |  |
Ratio of Net Loans and Leases Charged-Off to |  |  |  |  |  |  |
Average Loans and Leases Outstanding (annualized) |  | 0.07 | % |  | 0.05 | % |  | 0.08 | % |
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 2 |  | 1.07 | % |  | 1.05 | % |  | 1.04 | % |
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, 2024 |  |  |  |  |  |  |  |
Net Interest Income (Loss) | $ | 96,994 |  | $ | 51,493 |  | $ | (34,549 | ) | $ | 113,938 |
Provision for Credit Losses |  | 2,287 |  |  | (6 | ) |  | (281 | ) |  | 2,000 |
Net Interest Income (Loss) After Provision for Credit Losses |  | 94,707 |  |  | 51,499 |  |  | (34,268 | ) |  | 111,938 |
Noninterest Income |  | 31,982 |  |  | 6,794 |  |  | 3,509 |  |  | 42,285 |
Noninterest Expense |  | (82,705 | ) |  | (18,643 | ) |  | (4,511 | ) |  | (105,859 | )
Income (Loss) Before Income Taxes |  | 43,984 |  |  | 39,650 |  |  | (35,270 | ) |  | 48,364 |
Provision for Income Taxes |  | (11,181 | ) |  | (10,008 | ) |  | 9,216 |  |  | (11,973 | )
Net Income (Loss) | $ | 32,803 |  | $ | 29,642 |  | $ | (26,054 | ) | $ | 36,391 |
Total Assets as of March 31, 2024 | $ | 8,395,784 |  | $ | 5,830,056 |  | $ | 9,195,020 |  | $ | 23,420,860 |
Three Months March 31, 2023 1 |  |  |  |  |  |  |  |
Net Interest Income (Loss) | $ | 96,583 |  | $ | 55,541 |  | $ | (16,169 | ) | $ | 135,955 |
Provision for Credit Losses |  | 2,669 |  |  | (1 | ) |  | (668 | ) |  | 2,000 |
Net Interest Income (Loss) After Provision for Credit Losses |  | 93,914 |  |  | 55,542 |  |  | (15,501 | ) |  | 133,955 |
Noninterest Income |  | 31,154 |  |  | 8,649 |  |  | 934 |  |  | 40,737 |
Noninterest Expense |  | (84,975 | ) |  | (20,289 | ) |  | (6,655 | ) |  | (111,919 | )
Income (Loss) Before Income Taxes |  | 40,093 |  |  | 43,902 |  |  | (21,222 | ) |  | 62,773 |
Provision for Income Taxes |  | (10,274 | ) |  | (10,486 | ) |  | 4,829 |  |  | (15,931 | )
Net Income (Loss) | $ | 29,819 |  | $ | 33,416 |  | $ | (16,393 | ) | $ | 46,842 |
Total Assets as of March 31, 2023 | $ | 8,628,287 |  | $ | 5,625,254 |  | $ | 9,678,436 |  | $ | 23,931,977 |
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) | 2024 |  |  | 2023 |  |  | 2023 |  |  | 2023 |  |  | 2023 |  |
Quarterly Operating Results |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest and Fees on Loans and Leases | $ | 159,336 |  |  | $ | 158,324 |  |  | $ | 151,245 |  |  | $ | 144,541 |  |  | $ | 136,501 |  |
Income on Investment Securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-Sale |  | 21,757 |  |  |  | 22,782 |  |  |  | 23,552 |  |  |  | 23,301 |  |  |  | 23,893 |  |
Held-to-Maturity |  | 22,136 |  |  |  | 22,589 |  |  |  | 22,838 |  |  |  | 23,375 |  |  |  | 23,948 |  |
Deposits |  | 30 |  |  |  | 23 |  |  |  | 18 |  |  |  | 18 |  |  |  | 27 |  |
Funds Sold |  | 6,127 |  |  |  | 5,705 |  |  |  | 12,828 |  |  |  | 6,395 |  |  |  | 3,366 |  |
Other |  | 970 |  |  |  | 924 |  |  |  | 1,464 |  |  |  | 2,121 |  |  |  | 597 |  |
Total Interest Income |  | 210,356 |  |  |  | 210,347 |  |  |  | 211,945 |  |  |  | 199,751 |  |  |  | 188,332 |  |
Interest Expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | 89,056 |  |  |  | 87,121 |  |  |  | 72,153 |  |  |  | 53,779 |  |  |  | 37,794 |  |
Securities Sold Under Agreements to Repurchase |  | 1,443 |  |  |  | 1,459 |  |  |  | 4,034 |  |  |  | 5,436 |  |  |  | 5,377 |  |
Funds Purchased |  | - |  |  |  | - |  |  |  | - |  |  |  | 184 |  |  |  | 704 |  |
Short-Term Borrowings |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,510 |  |  |  | 3,203 |  |
Other Debt |  | 5,919 |  |  |  | 5,982 |  |  |  | 14,821 |  |  |  | 13,494 |  |  |  | 5,299 |  |
Total Interest Expense |  | 96,418 |  |  |  | 94,562 |  |  |  | 91,008 |  |  |  | 75,403 |  |  |  | 52,377 |  |
Net Interest Income |  | 113,938 |  |  |  | 115,785 |  |  |  | 120,937 |  |  |  | 124,348 |  |  |  | 135,955 |  |
Provision for Credit Losses |  | 2,000 |  |  |  | 2,500 |  |  |  | 2,000 |  |  |  | 2,500 |  |  |  | 2,000 |  |
Net Interest Income After Provision for Credit Losses |  | 111,938 |  |  |  | 113,285 |  |  |  | 118,937 |  |  |  | 121,848 |  |  |  | 133,955 |  |
Noninterest Income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trust and Asset Management |  | 11,189 |  |  |  | 11,144 |  |  |  | 10,548 |  |  |  | 11,215 |  |  |  | 10,690 |  |
Mortgage Banking |  | 951 |  |  |  | 1,016 |  |  |  | 1,059 |  |  |  | 1,176 |  |  |  | 1,004 |  |
Service Charges on Deposit Accounts |  | 7,947 |  |  |  | 7,949 |  |  |  | 7,843 |  |  |  | 7,587 |  |  |  | 7,737 |  |
Fees, Exchange, and Other Service Charges |  | 14,123 |  |  |  | 13,774 |  |  |  | 13,824 |  |  |  | 14,150 |  |  |  | 13,808 |  |
Investment Securities Losses, Net |  | (1,497 | ) |  |  | (1,619 | ) |  |  | (6,734 | ) |  |  | (1,310 | ) |  |  | (1,792 | ) |
Annuity and Insurance |  | 1,046 |  |  |  | 1,271 |  |  |  | 1,156 |  |  |  | 1,038 |  |  |  | 1,271 |  |
Bank-Owned Life Insurance |  | 3,356 |  |  |  | 3,176 |  |  |  | 2,749 |  |  |  | 2,876 |  |  |  | 2,842 |  |
Other |  | 5,170 |  |  |  | 5,572 |  |  |  | 19,889 |  |  |  | 6,523 |  |  |  | 5,177 |  |
Total Noninterest Income |  | 42,285 |  |  |  | 42,283 |  |  |  | 50,334 |  |  |  | 43,255 |  |  |  | 40,737 |  |
Noninterest Expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and Benefits |  | 58,215 |  |  |  | 53,991 |  |  |  | 58,825 |  |  |  | 56,175 |  |  |  | 65,088 |  |
Net Occupancy |  | 10,456 |  |  |  | 9,734 |  |  |  | 10,327 |  |  |  | 9,991 |  |  |  | 9,872 |  |
Net Equipment |  | 10,103 |  |  |  | 9,826 |  |  |  | 9,477 |  |  |  | 10,573 |  |  |  | 10,375 |  |
Data Processing |  | 4,770 |  |  |  | 4,948 |  |  |  | 4,706 |  |  |  | 4,599 |  |  |  | 4,583 |  |
Professional Fees |  | 4,677 |  |  |  | 5,079 |  |  |  | 3,846 |  |  |  | 4,651 |  |  |  | 3,883 |  |
FDIC Insurance |  | 3,614 |  |  |  | 18,545 |  |  |  | 3,361 |  |  |  | 3,173 |  |  |  | 3,234 |  |
Other |  | 14,024 |  |  |  | 13,839 |  |  |  | 15,059 |  |  |  | 14,874 |  |  |  | 14,884 |  |
Total Noninterest Expense |  | 105,859 |  |  |  | 115,962 |  |  |  | 105,601 |  |  |  | 104,036 |  |  |  | 111,919 |  |
Income Before Provision for Income Taxes |  | 48,364 |  |  |  | 39,606 |  |  |  | 63,670 |  |  |  | 61,067 |  |  |  | 62,773 |  |
Provision for Income Taxes |  | 11,973 |  |  |  | 9,210 |  |  |  | 15,767 |  |  |  | 15,006 |  |  |  | 15,931 |  |
Net Income | $ | 36,391 |  |  | $ | 30,396 |  |  | $ | 47,903 |  |  | $ | 46,061 |  |  | $ | 46,842 |  |
Preferred Stock Dividends |  | 1,969 |  |  |  | 1,969 |  |  |  | 1,969 |  |  |  | 1,969 |  |  |  | 1,969 |  |
Net Income Available to Common Shareholders | $ | 34,422 |  |  | $ | 28,427 |  |  | $ | 45,934 |  |  | $ | 44,092 |  |  | $ | 44,873 |  |
Basic Earnings Per Common Share | $ | 0.87 |  |  | $ | 0.72 |  |  | $ | 1.17 |  |  | $ | 1.12 |  |  | $ | 1.14 |  |
Diluted Earnings Per Common Share | $ | 0.87 |  |  | $ | 0.72 |  |  | $ | 1.17 |  |  | $ | 1.12 |  |  | $ | 1.14 |  |
Balance Sheet Totals |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and Leases | $ | 13,853,837 |  |  | $ | 13,965,026 |  |  | $ | 13,919,491 |  |  | $ | 13,914,889 |  |  | $ | 13,824,522 |  |
Total Assets |  | 23,420,860 |  |  |  | 23,733,296 |  |  |  | 23,549,785 |  |  |  | 24,947,936 |  |  |  | 23,931,977 |  |
Total Deposits |  | 20,676,586 |  |  |  | 21,055,045 |  |  |  | 20,802,309 |  |  |  | 20,508,615 |  |  |  | 20,491,300 |  |
Total Shareholders' Equity |  | 1,435,977 |  |  |  | 1,414,242 |  |  |  | 1,363,840 |  |  |  | 1,358,279 |  |  |  | 1,354,430 |  |
Performance Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on Average Assets |  | 0.63 |  | % |  | 0.51 |  | % |  | 0.78 |  | % |  | 0.77 |  | % |  | 0.80 |  | %
Return on Average Shareholders' Equity |  | 10.34 |  |  |  | 8.86 |  |  |  | 13.92 |  |  |  | 13.55 |  |  |  | 14.25 |  |
Return on Average Common Equity |  | 11.20 |  |  |  | 9.55 |  |  |  | 15.38 |  |  |  | 14.95 |  |  |  | 15.79 |  |
Efficiency Ratio 1 |  | 67.76 |  |  |  | 73.36 |  |  |  | 61.66 |  |  |  | 62.07 |  |  |  | 63.34 |  |
Net Interest Margin 2 |  | 2.11 |  |  |  | 2.13 |  |  |  | 2.13 |  |  |  | 2.22 |  |  |  | 2.47 |  |
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.

Bank of Hawai‘i Corporation and Subsidiaries |  |  |  |  |
Hawaii Economic Trends |  |  | Table 15
| Two Months Ended |  |  | Year Ended
(dollars in millions; jobs in thousands) | February 29, 2024 |  |  | December 31, 2023 | December 31, 2022
Hawaii Economic Trends |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State General Fund Revenues 1 | $ | 1,604.2 |  |  | 3.8 |  | % | $ | 9,504.1 |  |  |  | 0.7 |  | % | $ | 9,441.3 |  |  |  | 16.0 |  | %
General Excise and Use Tax Revenue 1 |  | 812.5 |  |  | 1.9 |  |  |  | 4,474.1 |  |  |  | 4.9 |  |  |  | 4,263.4 |  |  |  | 18.3 |  |
Jobs 2 |  | 653.5 |  |  |  |  |  | 655.2 |  |  |  |  |  |  | 653.3 |  |  |  |  |
|  |  |  |  |  |  |  |  | March 31, |  |  | December 31,
|  |  |  |  |  |  |  |  | 2024 |  |  | 2023 | 2022
Unemployment, seasonally adjusted 2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Statewide |  |  |  |  |  |  |  |  |  | 3.1 |  | % |  | 3.0 |  | % |  | 3.2 |  | %
Honolulu County |  |  |  |  |  |  |  |  |  | 2.9 |  |  |  | 2.6 |  |  |  | 3.1 |  |
Hawaii County |  |  |  |  |  |  |  |  |  | 3.2 |  |  |  | 2.8 |  |  |  | 3.5 |  |
Maui County |  |  |  |  |  |  |  |  |  | 4.3 |  |  |  | 6.2 |  |  |  | 3.5 |  |
Kauai County |  |  |  |  |  |  |  |  |  | 2.6 |  |  |  | 2.5 |  |  |  | 3.1 |  |
|  |  |  |  |  | March 31, |  |  | December 31,
(1-year percentage change, except months of inventory) |  |  |  |  |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |
Housing Trends (Single Family Oahu) 3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Median Home Price |  |  |  |  |  |  | 4.4 |  | % |  | (5.0 | ) | % |  | 11.6 |  | % |  | 19.3 |  | %
Home Sales Volume (units) |  |  |  |  |  |  | 6.1 |  | % |  | (26.3 | ) | % |  | (23.2 | ) | % |  | 17.9 |  | %
Months of Inventory |  |  |  |  |  |  | 2.7 |  |  |  | 2.8 |  |  |  | 2.1 |  |  |  | 0.8 |  |
|  |  |  |  |  | Monthly Visitor Arrivals, |  |  | Percentage Change
(in thousands, except percent change) |  |  |  |  |  | Not Seasonally Adjusted |  |  | from Previous Year
Tourism 4 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
February 29, 2024 |  |  |  |  |  |  |  |  |  | 752.7 |  |  |  |  |  |  | 2.6 |  | %
January 31, 2024 |  |  |  |  |  |  |  |  |  | 745.6 |  |  |  |  |  |  | (3.8 | ) |
December 31, 2023 |  |  |  |  |  |  |  |  |  | 845.6 |  |  |  |  |  |  | (1.5 | ) |
November 30, 2023 |  |  |  |  |  |  |  |  |  | 720.3 |  |  |  |  |  |  | 0.2 |  |
October 31, 2023 |  |  |  |  |  |  |  |  |  | 700.3 |  |  |  |  |  |  | (3.7 | ) |
September 30, 2023 |  |  |  |  |  |  |  |  |  | 643.1 |  |  |  |  |  |  | (7.1 | ) |
August 31, 2023 |  |  |  |  |  |  |  |  |  | 766.0 |  |  |  |  |  |  | (7.7 | ) |
July 31, 2023 |  |  |  |  |  |  |  |  |  | 929.4 |  |  |  |  |  |  | 1.2 |  |
June 30, 2023 |  |  |  |  |  |  |  |  |  | 886.0 |  |  |  |  |  |  | 5.3 |  |
May 31, 2023 |  |  |  |  |  |  |  |  |  | 790.5 |  |  |  |  |  |  | 2.1 |  |
April 30, 2023 |  |  |  |  |  |  |  |  |  | 806.2 |  |  |  |  |  |  | (0.4 | ) |
March 31, 2023 |  |  |  |  |  |  |  |  |  | 892.2 |  |  |  |  |  |  | 13.6 |  |
February 28, 2023 |  |  |  |  |  |  |  |  |  | 733.6 |  |  |  |  |  |  | 17.6 |  |
January 31, 2023 |  |  |  |  |  |  |  |  |  | 775.1 |  |  |  |  |  |  | 36.7 |  |
December 31, 2022 |  |  |  |  |  |  |  |  |  | 858.3 |  |  |  |  |  |  | 14.0 |  |
November 30, 2022 |  |  |  |  |  |  |  |  |  | 719.0 |  |  |  |  |  |  | 17.1 |  |
October 31, 2022 |  |  |  |  |  |  |  |  |  | 727.4 |  |  |  |  |  |  | 32.1 |  |
September 30, 2022 |  |  |  |  |  |  |  |  |  | 692.2 |  |  |  |  |  |  | 37.2 |  |
August 31, 2022 |  |  |  |  |  |  |  |  |  | 829.8 |  |  |  |  |  |  | 14.8 |  |
July 31, 2022 |  |  |  |  |  |  |  |  |  | 918.6 |  |  |  |  |  |  | 4.4 |  |
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 |  |
1 Source: Hawaii Department of Business, Economic Development & Tourism
2 Source: U.S. Bureau of Labor Statistics
3 Source: Honolulu Board of Realtors
4 Source: Hawaii Tourism Authority