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Bank of Hawaii Corporation Third Quarter 2019 Financial Results

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


FOR IMMEDIATE RELEASE

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

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

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

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

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Bank of Hawaii Corporation Third Quarter 2019 Financial Results      Page 2

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

Financial Highlights

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

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

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

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

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

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



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Bank of Hawaii Corporation Third Quarter 2019 Financial Results      Page 3

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

Asset Quality

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

Accruing loans and leases past due 90 days or more were $6.1 million at September 30, 2019 compared with $6.4 million at June 30, 2019 and $8.1 million at September 30, 2018. Restructured loans and leases not included in non-accrual loans or accruing loans past due 90 days or more were $46.2 million at September 30, 2019, down from $48.6 million at June 30, 2019 and $49.5 million at September 30, 2018. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loans and leases charged off during the third quarter of 2019 were $3.0 million or 0.11 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $5.8 million during the quarter were partially offset by recoveries of $2.8 million. Net charge-offs during the second quarter of 2019 were $2.4 million or 0.09 percent annualized of total average loans and leases outstanding and were comprised of $5.1 million in charge-offs partially offset by recoveries of $2.8 million. Net charge-offs during the third quarter of 2018 were $3.3 million or 0.13 percent annualized of total average loans and leases outstanding and were comprised of $6.0 million in charge-offs partially offset by recoveries of $2.7 million. Net charge-offs in the nine-month period ended September 30, 2019 were $9.0 million, or 0.11 percent annualized of total average loans and leases outstanding compared with net charge-offs of $10.1 million, or 0.14 percent annualized of total average loans and leases outstanding for the same period in 2018.

The allowance for loan and lease losses was $108.9 million at September 30, 2019 compared with $107.7 million at June 30, 2019 and $108.7 million at September 30, 2018. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.00 percent at September 30, 2019, unchanged from the previous quarter and down 6 basis points from the end of the same quarter last year. The reserve for unfunded commitments at September 30, 2019 of $6.8 million was unchanged from June 30, 2019 and September 30, 2018. Details of loan and lease charge-offs, recoveries and the components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets were $17.7 billion at September 30, 2019, down $16.7 million from June 30, 2019 and up $680.4 million from total assets of $17.0 billion at September 30, 2018. Average total assets were $17.6 billion during the third quarter of 2019 compared with $17.5 billion during the previous quarter and $17.0 billion during the same quarter last year.

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

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Bank of Hawaii Corporation Third Quarter 2019 Financial Results      Page 4

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

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

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

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

The Company’s Board of Directors declared a quarterly cash dividend of $0.67 per share on the Company’s outstanding shares. The dividend will be payable on December 13, 2019 to shareholders of record at the close of business on November 29, 2019.













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Bank of Hawaii Corporation Third Quarter 2019 Financial Results      Page 5

Hawaii Economy

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

Conference Call Information

The call will be accessible via teleconference and via the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. The toll-free number is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, October 28, 2019. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the conference ID 2768225 when prompted. In addition, a replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.

Bank of Hawaii Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawaii and the West Pacific. The Company's principal subsidiary, Bank of Hawaii, was founded in 1897. For more information about Bank of Hawaii Corporation, see the Company’s web site, www.boh.com.

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Bank of Hawaii Corporation and Subsidiaries
Financial HighlightsTable 1
Three Months EndedNine Months Ended
September 30,June 30,September 30,September 30,
(dollars in thousands, except per share amounts)20192019201820192018
For the Period:
Operating Results
Net Interest Income$124,896  $124,097  $122,927  $373,830  $362,379  
Provision for Credit Losses4,250  4,000  3,800  11,250  11,425  
Total Noninterest Income46,507  45,450  41,482  135,636  126,815  
Total Noninterest Expense100,349  92,725  90,538  286,131  275,713  
Net Income52,052  56,919  56,933  167,770  165,691  
Basic Earnings Per Share1.30  1.40  1.37  4.14  3.96  
Diluted Earnings Per Share1.29  1.40  1.36  4.11  3.93  
Dividends Declared Per Share0.65  0.65  0.60  1.92  1.72  
Performance Ratios
Return on Average Assets 1.17  %1.31  %1.33  %1.29  %1.31  %
Return on Average Shareholders' Equity 16.02  17.97  18.06  17.58  17.83  
Efficiency Ratio 1
58.55  54.69  55.07  56.16  56.36  
Net Interest Margin 2
3.01  3.04  3.07  3.05  3.04  
Dividend Payout Ratio 3
50.00  46.43  43.80  46.38  43.43  
Average Shareholders' Equity to Average Assets7.32  7.27  7.35  7.31  7.32  
Average Balances
Average Loans and Leases$10,770,720  $10,631,558  $10,081,886  $10,624,311  $9,950,518  
Average Assets17,605,394  17,480,651  17,015,340  17,442,054  16,965,075  
Average Deposits15,330,691  15,162,782  14,820,480  15,156,275  14,750,382  
Average Shareholders' Equity1,289,417  1,270,162  1,250,500  1,275,753  1,242,629  
Per Share of Common Stock
Book Value$32.00  $31.61  $29.98  $32.00  $29.98  
Tangible Book Value31.22  30.83  29.22  31.22  29.22  
Market Value
   Closing85.93  82.91  78.91  85.93  78.91  
   High88.20  84.53  86.53  88.20  89.09  
   Low79.13  75.24  78.30  66.54  78.30  
September 30,June 30,December 31,September 30,
2019201920182018
As of Period End:
Balance Sheet Totals
Loans and Leases$10,881,298  $10,759,129  $10,448,774  $10,231,062  
Total Assets17,672,140  17,688,845  17,143,974  16,991,734  
Total Deposits15,340,752  15,488,821  15,027,242  14,843,335  
Other Debt110,585  110,605  135,643  185,662  
Total Shareholders' Equity1,291,490  1,285,948  1,268,200  1,253,327  
Asset Quality
Non-Performing Assets$21,645  $21,782  $12,930  $13,798  
Allowance for Loan and Lease Losses108,936  107,672  106,693  108,690  
Allowance to Loans and Leases Outstanding1.00  %1.00  %1.02  %1.06  %
Capital Ratios
Common Equity Tier 1 Capital Ratio12.33  %12.46  %13.07  %13.20  %
Tier 1 Capital Ratio12.33  12.46  13.07  13.20  
Total Capital Ratio13.44  13.57  14.21  14.38  
Tier 1 Leverage Ratio7.32  7.36  7.60  7.55  
Total Shareholders' Equity to Total Assets7.31  7.27  7.40  7.38  
Tangible Common Equity to Tangible Assets 4
7.14  7.10  7.23  7.20  
Tangible Common Equity to Risk-Weighted Assets 4
12.10  12.17  12.52  12.56  
Non-Financial Data
Full-Time Equivalent Employees 2,124  2,152  2,122  2,143  
Branches67  68  69  69  
ATMs379  383  382  382  
1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
2 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
3 Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.
4 Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 “Reconciliation of Non-GAAP Financial Measures."
Note: Common Equity Tier 1 and Tier 1 Capital Ratios were revised from 13.19% and Tangible Common Equity to Risk-Weighted Assets was revised from 12.55% as of September 30, 2018.





Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial MeasuresTable 2
September 30,June 30,December 31,September 30,
(dollars in thousands)2019201920182018
Total Shareholders' Equity$1,291,490  $1,285,948  $1,268,200  $1,253,327  
Less:Goodwill31,517  31,517  31,517  31,517  
Tangible Common Equity$1,259,973  $1,254,431  $1,236,683  $1,221,810  
Total Assets$17,672,140  $17,688,845  $17,143,974  $16,991,734  
Less:Goodwill31,517  31,517  31,517  31,517  
Tangible Assets$17,640,623  $17,657,328  $17,112,457  $16,960,217  
Risk-Weighted Assets, determined in accordance
   with prescribed regulatory requirements$10,416,560  $10,309,085  $9,878,904  $9,731,082  
Total Shareholders' Equity to Total Assets 7.31 %7.27 %7.40 %7.38 %
Tangible Common Equity to Tangible Assets (Non-GAAP)7.14 %7.10 %7.23 %7.20 %
Tier 1 Capital Ratio 12.33 %12.46 %13.07 %13.20 %
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)12.10 %12.17 %12.52 %12.56 %
Note: Risk-Weighted Assets was revised from $9,732,618, Tier 1 Capital Ratio was revised from 13.19%, and Tangible Common Equity to Risk-Weighted Assets
               was revised from 12.55% as of September 30, 2018.





Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income Table 3
Three Months EndedNine Months Ended
September 30,June 30,September 30,September 30,
(dollars in thousands, except per share amounts)20192019201820192018
Interest Income
   Interest and Fees on Loans and Leases$110,877  $110,401  $104,248  $329,789  $303,193  
   Income on Investment Securities
      Available-for-Sale17,512  15,072  12,588  46,016  37,109  
      Held-to-Maturity18,796  22,149  20,821  62,866  62,828  
   Deposits  10  33  24  
   Funds Sold 656  730  1,393  2,830  2,996  
   Other233  210  364  762  1,005  
Total Interest Income148,083  148,571  139,424  442,296  407,155  
Interest Expense
   Deposits18,055  18,628  10,931  51,967  27,971  
   Securities Sold Under Agreements to Repurchase4,257  4,623  4,667  13,451  13,848  
   Funds Purchased146  512  33  815  169  
   Short-Term Borrowings  28  38  57  
   Other Debt728  710  838  2,195  2,731  
Total Interest Expense23,187  24,474  16,497  68,466  44,776  
Net Interest Income124,896  124,097  122,927  373,830  362,379  
Provision for Credit Losses4,250  4,000  3,800  11,250  11,425  
Net Interest Income After Provision for Credit Losses120,646  120,097  119,127  362,580  350,954  
Noninterest Income
   Trust and Asset Management10,930  11,385  10,782  33,076  33,319  
   Mortgage Banking4,864  3,336  1,965  10,487  6,289  
   Service Charges on Deposit Accounts7,592  7,283  7,255  22,239  21,249  
   Fees, Exchange, and Other Service Charges14,900  14,252  14,173  43,360  42,906  
   Investment Securities Gains (Losses), Net(1,469) (776) (729) (3,080) (3,097) 
   Annuity and Insurance1,278  1,806  1,360  5,662  4,413  
   Bank-Owned Life Insurance1,647  1,779  1,620  5,136  5,258  
   Other6,765  6,385  5,056  18,756  16,478  
Total Noninterest Income46,507  45,450  41,482  135,636  126,815  
Noninterest Expense
   Salaries and Benefits54,345  53,511  51,782  164,442  158,352  
   Net Occupancy8,803  8,579  8,702  24,976  25,824  
   Net Equipment7,637  6,895  6,116  21,365  17,488  
   Data Processing4,676  4,727  4,241  13,929  12,695  
   Professional Fees2,184  2,177  2,206  6,814  7,525  
   FDIC Insurance1,257  1,290  2,057  3,816  6,396  
   Other 21,447  15,546  15,434  50,789  47,433  
Total Noninterest Expense100,349  92,725  90,538  286,131  275,713  
Income Before Provision for Income Taxes66,804  72,822  70,071  212,085  202,056  
Provision for Income Taxes14,752  15,903  13,138  44,315  36,365  
Net Income$52,052  $56,919  $56,933  $167,770  $165,691  
Basic Earnings Per Share$1.30  $1.40  $1.37  $4.14  $3.96  
Diluted Earnings Per Share$1.29  $1.40  $1.36  $4.11  $3.93  
Dividends Declared Per Share$0.65  $0.65  $0.60  $1.92  $1.72  
Basic Weighted Average Shares40,190,508  40,541,594  41,620,776  40,554,036  41,846,080  
Diluted Weighted Average Shares40,450,742  40,769,767  41,899,401  40,806,295  42,133,776  




Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive IncomeTable 4
Three Months EndedNine Months Ended
September 30,June 30,September 30,September 30,
(dollars in thousands)20192019201820192018
Net Income$52,052  $56,919  $56,933  $167,770  $165,691  
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities5,405  16,209  (5,599) 28,533  (17,694) 
Defined Benefit Plans245  245  216  736  648  
Other Comprehensive Income (Loss)5,650  16,454  (5,383) 29,269  (17,046) 
Comprehensive Income $57,702  $73,373  $51,550  $197,039  $148,645  





Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of ConditionTable 5
September 30,June 30,December 31,September 30,
(dollars in thousands)2019201920182018
Assets
Interest-Bearing Deposits in Other Banks$2,946  $3,859  $3,028  $3,725  
Funds Sold108,446  204,340  198,860  104,199  
Investment Securities
   Available-for-Sale2,594,394  2,649,949  2,007,942  2,049,687  
   Held-to-Maturity (Fair Value of $2,972,273; $2,973,229; $3,413,994; and $3,549,235)2,946,910  2,959,611  3,482,092  3,664,487  
Loans Held for Sale36,720  22,706  10,987  18,063  
Loans and Leases10,881,298  10,759,129  10,448,774  10,231,062  
   Allowance for Loan and Lease Losses(108,936) (107,672) (106,693) (108,690) 
     Net Loans and Leases10,772,362  10,651,457  10,342,081  10,122,372  
Total Earning Assets16,461,778  16,491,922  16,044,990  15,962,533  
Cash and Due from Banks259,492  282,164  324,081  227,049  
Premises and Equipment, Net179,453  169,671  151,837  142,928  
Operating Lease Right-of-Use Assets101,005  103,336  —  —  
Accrued Interest Receivable47,897  49,726  51,230  54,839  
Foreclosed Real Estate2,939  2,737  1,356  1,909  
Mortgage Servicing Rights24,408  24,233  24,310  24,463  
Goodwill 31,517  31,517  31,517  31,517  
Bank-Owned Life Insurance286,936  285,295  283,771  282,637  
Other Assets276,715  248,244  230,882  263,859  
Total Assets$17,672,140  $17,688,845  $17,143,974  $16,991,734  
Liabilities
Deposits
   Noninterest-Bearing Demand$4,392,706  $4,528,251  $4,739,596  $4,678,981  
   Interest-Bearing Demand3,000,865  3,033,066  3,002,925  2,975,069  
   Savings6,141,098  6,004,528  5,539,199  5,444,053  
   Time1,806,083  1,922,976  1,745,522  1,745,232  
Total Deposits15,340,752  15,488,821  15,027,242  14,843,335  
Short-Term Borrowings—  —  199  629  
Securities Sold Under Agreements to Repurchase604,299  504,299  504,296  504,293  
Other Debt 110,585  110,605  135,643  185,662  
Operating Lease Liabilities108,264  110,483  —  —  
Retirement Benefits Payable39,682  40,047  40,494  36,288  
Accrued Interest Payable8,435  9,454  8,253  7,689  
Taxes Payable and Deferred Taxes21,089  21,337  19,736  15,549  
Other Liabilities147,544  117,851  139,911  144,962  
Total Liabilities16,380,650  16,402,897  15,875,774  15,738,407  
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
   issued / outstanding: September 30, 2019 - 58,176,305 / 40,359,259;
   June 30, 2019 - 58,175,367 / 40,687,719; December 31, 2018 - 58,063,689 / 41,499,898;
   and September 30, 2018 - 58,070,578 / 41,809,551)579  579  577  577  
Capital Surplus580,200  577,346  571,704  569,223  
Accumulated Other Comprehensive Loss(21,774) (27,424) (51,043) (59,238) 
Retained Earnings1,730,437  1,704,993  1,641,314  1,612,998  
Treasury Stock, at Cost (Shares: September 30, 2019 - 17,817,046; June 30, 2019 - 17,487,648;
    December 31, 2018 - 16,563,791; and September 30, 2018 - 16,261,027)(997,952) (969,546) (894,352) (870,233) 
Total Shareholders' Equity1,291,490  1,285,948  1,268,200  1,253,327  
Total Liabilities and Shareholders' Equity$17,672,140  $17,688,845  $17,143,974  $16,991,734  





Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' EquityTable 6
Accum.
Other
Compre-
hensive
Common SharesCommonCapitalIncomeRetainedTreasury
(dollars in thousands)OutstandingStockSurplus(Loss)EarningsStockTotal
Balance as of December 31, 201841,499,898  $577  $571,704  $(51,043) $1,641,314  $(894,352) $1,268,200  
Net Income—  —  —  —  167,770  —  167,770  
Other Comprehensive Income—  —  —  29,269  —  —  29,269  
Share-Based Compensation—  —  6,662  —  —  —  6,662  
Common Stock Issued under Purchase and Equity
  Compensation Plans 200,984   1,834  —  (109) 4,275  6,002  
Common Stock Repurchased (1,341,623) —  —  —  —  (107,875) (107,875) 
Cash Dividends Declared ($1.92 per share)—  —  —  —  (78,538) —  (78,538) 
Balance as of September 30, 201940,359,259  $579  $580,200  $(21,774) $1,730,437  $(997,952) $1,291,490  
Balance as of December 31, 201742,401,443  $576  $561,161  $(34,715) $1,512,218  $(807,372) $1,231,868  
Net Income—  —  —  —  165,691  —  165,691  
Other Comprehensive Loss—  —  —  (17,046) —  —  (17,046) 
Reclassification of the Income Tax Effects of the
 Tax Cuts and Jobs Act from AOCI—  —  —  (7,477) 7,477  —  —  
Share-Based Compensation—  —  6,208  —  —  —  6,208  
Common Stock Issued under Purchase and Equity
  Compensation Plans203,289   1,854  —  251  4,127  6,233  
Common Stock Repurchased (795,181) —  —  —  —  (66,988) (66,988) 
Cash Dividends Declared ($1.72 per share)—  —  —  —  (72,639) —  (72,639) 
Balance as of September 30, 201841,809,551  $577  $569,223  $(59,238) $1,612,998  $(870,233) $1,253,327  





Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent BasisTable 7a
Three Months EndedThree Months EndedThree Months Ended
September 30, 2019June 30, 2019September 30, 2018
AverageIncome/Yield/AverageIncome/Yield/AverageIncome/Yield/
(dollars in millions)BalanceExpenseRateBalanceExpenseRateBalanceExpenseRate
Earning Assets
Interest-Bearing Deposits in Other Banks$3.1  $—  1.19  %$2.9  $—  1.25  %$3.6  $—  1.09  %
Funds Sold121.1  0.7  2.12  123.6  0.8  2.34  281.9  1.4  1.93  
Investment Securities
Available-for-Sale
   Taxable2,647.9  17.1  2.59  2,004.3  14.3  2.87  1,512.1  9.5  2.51  
   Non-Taxable42.6  0.5  4.45  86.8  0.9  4.15  567.5  3.9  2.75  
Held-to-Maturity
   Taxable2,873.7  18.5  2.57  3,358.0  21.0  2.50  3,413.7  19.3  2.26  
   Non-Taxable65.2  0.4  2.72  193.0  1.5  3.08  236.1  1.9  3.16  
Total Investment Securities5,629.4  36.5  2.59  5,642.1  37.7  2.68  5,729.4  34.6  2.41  
Loans Held for Sale24.3  0.2  3.94  18.7  0.2  4.05  14.9  0.2  4.45  
Loans and Leases 1
Commercial and Industrial 1,383.8  14.4  4.14  1,385.7  14.9  4.31  1,279.4  13.0  4.04  
Commercial Mortgage2,423.7  26.2  4.28  2,386.3  25.9  4.35  2,180.5  23.0  4.19  
Construction126.0  1.6  5.10  125.3  1.7  5.51  187.0  2.2  4.65  
Commercial Lease Financing161.8  1.0  2.57  159.9  1.0  2.49  175.0  1.0  2.30  
Residential Mortgage3,809.6  36.5  3.83  3,730.4  36.0  3.87  3,563.5  34.0  3.82  
Home Equity1,689.2  16.1  3.79  1,694.9  16.2  3.83  1,622.4  15.7  3.83  
Automobile707.0  6.4  3.59  688.5  6.2  3.62  606.3  5.9  3.84  
Other 2
469.6  8.5  7.16  460.6  8.4  7.33  467.8  9.3  7.90  
Total Loans and Leases10,770.7  110.7  4.09  10,631.6  110.3  4.16  10,081.9  104.1  4.11  
Other35.0  0.3  2.66  35.0  0.2  2.40  38.9  0.4  3.74  
Total Earning Assets 3
16,583.6  148.4  3.56  16,453.9  149.2  3.63  16,150.6  140.7  3.47  
Cash and Due from Banks231.5  241.6  252.1  
Other Assets790.3  785.2  612.6  
Total Assets$17,605.4  $17,480.7  $17,015.3  
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand$2,950.2  1.1  0.15  $2,902.5  1.4  0.19  $2,999.5  1.3  0.17  
Savings6,122.0  8.8  0.57  6,002.0  8.9  0.60  5,482.4  3.8  0.28  
Time1,851.0  8.2  1.75  1,866.6  8.3  1.79  1,683.0  5.8  1.37  
Total Interest-Bearing Deposits10,923.2  18.1  0.66  10,771.1  18.6  0.69  10,164.9  10.9  0.43  
Short-Term Borrowings27.1  0.1  2.13  82.3  0.5  2.46  11.6  0.1  2.06  
Securities Sold Under Agreements to Repurchase513.8  4.3  3.24  504.3  4.7  3.63  504.3  4.7  3.62  
Other Debt110.6  0.7  2.62  110.6  0.7  2.57  208.5  0.8  1.60  
Total Interest-Bearing Liabilities11,574.7  23.2  0.79  11,468.3  24.5  0.85  10,889.3  16.5  0.60  
Net Interest Income$125.2  $124.7  $124.2  
Interest Rate Spread2.77  %2.78  %2.87  %
Net Interest Margin3.01  %3.04  %3.07  %
Noninterest-Bearing Demand Deposits 4,407.5  4,391.7  4,655.6  
Other Liabilities333.8  350.5  219.9  
Shareholders' Equity1,289.4  1,270.2  1,250.5  
Total Liabilities and Shareholders' Equity$17,605.4  $17,480.7  $17,015.3  
1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $296,000, $601,000, and $1,265,000
for the three months ended September 30, 2019, June 30, 2019, and September 30, 2018, respectively.





Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent BasisTable 7b
Nine Months EndedNine Months Ended
September 30, 2019September 30, 2018
AverageIncome/Yield/AverageIncome/Yield/
(dollars in millions)BalanceExpenseRateBalanceExpenseRate
Earning Assets
Interest-Bearing Deposits in Other Banks$3.0  $—  1.49  %$3.2  $—  0.99  %
Funds Sold161.7  2.8  2.31  224.3  3.0