Bank of Hawaii Corporation : 2020 Financial Results

2020 Earnings $3.86 Per Diluted Share 2020 Net Income $153.8 Million Diluted Earnings Per Share $1.06 for Fourth Quarter of 2020 Net Income $42.3 Million for Fourth Quarter of 2020 Board of Directors Declares Dividend of $0.67 Per Share

Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $3.86 for the full year of 2020 compared with diluted earnings per share of $5.56 in 2019. Net income for the year was $153.8 million compared with net income of $225.9 million in the previous year. The return on average assets for the full year of 2020 was 0.79 percent compared with 1.29 percent in 2019. The return on average equity for the full year of 2020 was 11.38 percent compared with 17.65 percent in 2019. The efficiency ratio for the full year of 2020 improved to 54.91 percent compared with 55.68 percent in 2019.

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“Bank of Hawaii finished 2020 with solid financial performance despite the many challenges we faced during the year due to the COVID-19 pandemic," said Peter Ho, Chairman, President, and CEO. “Our loan balances grew 8.6 percent in 2020 and our deposit balances reached another record high, growing 15.4 percent compared with the prior year. Total assets expanded to a new record high of $20.6 billion at the end of the year. Our overall asset quality remained stable and our capital and liquidity all remain strong. During the year our disciplined approach to expense management allowed us to continue making significant progress on our strategic initiatives which position us well for continued growth in the future.”

Diluted earnings per share were $1.06 for the fourth quarter of 2020, an increase from $0.95 in the third quarter of 2020 and down from $1.45 in the fourth quarter of 2019. Net income for the fourth quarter of 2020 was $42.3 million, up from $37.8 million in the previous quarter and down from $58.1 million in the same quarter in 2019. The return on average assets for the fourth quarter of 2020 was 0.83 percent compared with 0.76 percent in the third quarter of 2020 and 1.29 percent in the fourth quarter of 2019. The return on average equity for the fourth quarter of 2020 was 12.26 percent compared with 11.01 percent in the third quarter of 2020 and 17.84 percent in the fourth quarter of 2019. The efficiency ratio for the fourth quarter of 2020 was 59.88 percent compared with 54.22 percent in the previous quarter and 54.26 percent in the same quarter in 2019.

Financial Highlights

Net interest income, on a taxable-equivalent basis, was $497.6 million for the full year of 2020, a decrease of $2.3 million from net interest income of $499.9 million in 2019. Net interest income, on a taxable-equivalent basis, for the fourth quarter of 2020 was $119.8 million, a decrease of $4.7 million compared with net interest income of $124.5 million in the third quarter of 2020 and down $4.4 million from net interest income of $124.2 million in the fourth quarter of 2019. Net interest income in the fourth quarter of 2020 included a charge of $3.0 million related to an impairment in the residual value of a leveraged lease which had a negative impact of 6 basis points on the net interest margin. Analyses of changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin for the full year of 2020 was 2.73 percent, a decrease of 30 basis points from the net interest margin of 3.03 percent in 2019. Adjusted for the lease impairment, the decrease in the net interest margin is largely due to lower rates and higher levels of liquidity from continued strong deposit growth. The net interest margin was 2.48 percent in the fourth quarter of 2020, a decrease of 19 basis points from the previous quarter and 47 basis points from the same quarter in 2019.

The provision for credit losses for the full year of 2020 was $117.8 million compared with a provision for credit losses of $16.0 million in 2019. Results for the fourth quarter of 2020 included a provision for credit losses of $15.2 million compared with $28.6 million in the previous quarter and $4.8 million in the same quarter in 2019.

Noninterest income for the full year of 2020 was $184.4 million, an increase of $1.1 million or 0.6 percent compared with noninterest income of $183.3 million in 2019. Noninterest income was $45.3 million in the fourth quarter of 2020 compared with noninterest income of $41.7 million in the third quarter of 2020 and $47.7 million in the fourth quarter of 2019. The increase in noninterest income during the fourth quarter of 2020 compared with the prior quarter is largely due to an increase in mortgage banking income.

Noninterest expense for the full year of 2020 was $373.8 million, a decrease of $5.4 million or 1.4 percent compared with noninterest expense of $379.2 million in 2019. Noninterest expense was $98.7 million in the fourth quarter of 2020 compared with noninterest expense of $89.9 million in the third quarter of 2020 and $93.1 million in the fourth quarter of 2019. Noninterest expense in the fourth quarter of 2020 included $6.1 million in charges related to the decision to permanently close twelve branches and reduce the current number of cash-only ATMs. Noninterest expense in the fourth quarter also included a charge of $0.8 million related to the true-up of amortization on an investment. Noninterest expense during the third quarter of 2020 included a gain of $1.9 million related to the sale of a branch building partially offset by $1.8 million in severance. There were no significant items in noninterest expense during the fourth quarter of 2019. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the full year of 2020 was 18.68 percent compared with 20.96 percent for the full year of 2019. The effective tax rate for the fourth quarter of 2020 was 16.87 percent compared with 20.09 percent in the previous quarter and 21.15 percent during the same quarter in 2019. The decrease in the effective tax rate for the fourth quarter of 2020 is primarily due to a return to provision adjustment of $1.6 million.

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

Asset Quality

The Company’s overall asset quality continued to remain relatively stable during the fourth quarter of 2020. Total non-performing assets were $18.5 million at December 31, 2020, down from $18.6 million at September 30, 2020 and $20.1 million at December 31, 2019. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.15 percent at December 31, 2020 compared with 0.16 percent at September 30, 2020 and 0.18 percent at December 31, 2019.

Accruing loans and leases past due 90 days or more were $10.5 million at December 31, 2020 compared with $9.6 million at September 30, 2020 and $8.4 million at December 31, 2019. Restructured loans and leases not included in non-accrual loans or accruing loans past due 90 days or more were $68.1 million at December 31, 2020 compared with $58.7 million at September 30, 2020 and $63.1 million at December 31, 2019. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net charge-offs for the full year of 2020 were $7.1 million or 0.06 percent of total average loans and leases compared with net charge-offs of $12.7 million or 0.12 percent of total average loans and leases in 2019. Net charge-offs during the fourth quarter of 2020 were a net recovery of $0.3 million and were comprised of charge-offs of $3.2 million fully offset by recoveries of $3.5 million. Net charge-offs during the third quarter of 2020 were a net recovery of $1.5 million as loan charge-offs of $2.3 million were fully offset by recoveries of $3.8 million. Net charge-offs during the fourth quarter of 2019 were $3.7 million or 0.13 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $6.2 million and recoveries of $2.6 million.

The allowance for credit losses was $216.3 million at December 31, 2020, an increase from $203.5 million at September 30, 2020 and $110.0 million at December 31, 2019. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.81 percent at December 31, 2020, up from 1.73 percent at September 30, 2020 and 1.00 percent at December 31, 2019. The reserve for unfunded commitments was $2.4 million at December 31, 2020, a slight increase from $2.3 million at the end of the prior quarter and down from $6.8 million at the end of the same quarter in 2019. Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets increased to a new record of $20.6 billion at December 31, 2020 compared with total assets of $20.1 billion at September 30, 2020 and total assets of $18.1 billion at December 31, 2019. Average total assets were $19.4 billion for the full year of 2020, an increase of 10.5 percent from average total assets of $17.5 billion during 2019.

The investment securities portfolio was $7.1 billion at December 31, 2020, up from total securities of $6.4 billion at September 30, 2020 and $5.7 billion at December 31, 2019 due to growth in deposits that continued to outpace loan growth. The portfolio remains largely comprised of securities issued by U.S. government agencies and includes $3.3 billion in securities held to maturity and $3.8 billion in securities available for sale at December 31, 2020. The securities portfolio at September 30, 2020 included $3.2 billion in securities held to maturity and $3.2 billion in securities available for sale compared with $3.0 billion in securities held to maturity and $2.6 billion in securities available for sale at December 31, 2019.

Total loans and leases were $11.9 billion at December 31, 2020, an increase of 1.2 percent from total loans and leases of $11.8 billion at September 30, 2020 and up 8.6 percent from total loans and leases of $11.0 billion at December 31, 2019. Average total loans and leases were $11.6 billion during the full year of 2020, an increase of 8.5 percent from average total loans and leases of $10.7 billion during 2019.

The commercial loan portfolio was $5.1 billion at the end of December 31, 2020, an increase of $83.8 million or 1.7 percent from $5.0 billion at the end of the third quarter of 2020 and up $886.9 million or 21.0 percent from $4.2 billion at the end of the fourth quarter of 2019. Consumer loans were $6.8 billion at December 31, 2020, an increase of $62.6 million or 0.9 percent from $6.8 billion at the end of the third quarter of 2020 and up $62.3 million or 0.9 percent from $6.8 billion at the end of the fourth quarter of 2019. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $18.2 billion at December 31, 2020, an increase of 2.7 percent from total deposits of $17.7 billion at September 30, 2020 and up 15.4 percent from total deposits of $15.8 billion at December 31, 2019. Average total deposits were $16.9 billion during the full year of 2020, an increase of 11.0 percent from average total deposits of $15.2 billion during 2019.

Consumer deposits were $9.3 billion at December 31, 2020, an increase of $443.9 million or 5.0 percent from $8.9 billion at the end of the third quarter of 2020 and an increase of $1.2 billion or 15.1 percent from $8.1 billion at the end of the fourth quarter of 2019. Commercial deposits were $7.3 billion at December 31, 2020, an increase of $143.3 million or 2.0 percent from $7.2 billion at the end of the third quarter of 2020 and an increase of $978.6 million or 15.5 percent from $6.3 billion at the end of the fourth quarter of 2019. Other deposits, including public funds, were $1.6 billion at December 31, 2020, a decrease of $114.5 million or 6.8 percent from $1.7 billion at the end of the third quarter of 2020 and an increase of $219.3 million or 16.3 percent from $1.3 billion at the end of the fourth quarter of 2019. Deposit balances are summarized in Tables 7a, 7b, and 10.

Total shareholders’ equity was $1.4 billion at December 31, 2020, an increase of $12.8 million from September 30, 2020, and up $87.7 million from December 31, 2019. There were no shares repurchased during the fourth quarter of 2020. The Tier 1 Capital Ratio was 12.06 percent at December 31, 2020 compared with 12.09 percent at September 30, 2020 and 12.18 percent at December 31, 2019. The Tier 1 Leverage Ratio at December 31, 2020 was 6.71 percent compared with 6.81 percent at September 30, 2020 and 7.25 percent at December 31, 2019. The decrease in the Tier 1 Leverage ratio is due to balance sheet growth related to the significant increase in customer deposits.

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 March 12, 2021 to shareholders of record at the close of business on February 26, 2021.

Conference Call Information

The Company will review its 2020 financial results today at 8:00 a.m. Hawaii Time (1:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. The webcast link is https://edge.media-server.com/mmc/p/ukntid8g. The toll-free number for the teleconference is 1 [phone] in the United States and Canada and 1 [phone] for other international callers. Use the pass code “Bank of Hawaii” to access the call. A replay of the conference call will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, January 25, 2021. The replay number is 1 [phone] in the United States and Canada and 1 [phone] from other international locations. Enter the conference ID 4199179 when prompted. In addition, the replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2019, and its Form 10-Qs for the fiscal quarters ended March 31, 2020, June 30, 2020 and October 31, 2020, which were filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

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

Bank of Hawaii Corporation and Subsidiaries
Financial Highlights													Table 1
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
(dollars in thousands, except per share amounts)		2020			2020			2019			2020			2019
For the Period:
Operating Results
Net Interest Income	$	119,499		$	124,166		$	123,885		$	496,322		$	497,715
Provision for Credit Losses		15,200			28,600			4,750			117,800			16,000
Total Noninterest Income		45,258			41,734			47,702			184,409			183,338
Total Noninterest Expense		98,654			89,949			93,096			373,807			379,227
Net Income		42,314			37,840			58,143			153,804			225,913
Basic Earnings Per Share		1.06			0.95			1.46			3.87			5.59
Diluted Earnings Per Share		1.06			0.95			1.45			3.86			5.56
Dividends Declared Per Share		0.67			0.67			0.67			2.68			2.59
Performance Ratios
Return on Average Assets		0.83	%		0.76	%		1.29	%		0.79	%		1.29	%
Return on Average Shareholders' Equity		12.26			11.01			17.84			11.38			17.65
Efficiency Ratio 1		59.88			54.22			54.26			54.91			55.68
Net Interest Margin 2		2.48			2.67			2.95			2.73			3.03
Dividend Payout Ratio 3		63.21			70.53			45.89			69.25			46.33
Average Shareholders' Equity to Average Assets		6.74			6.93			7.26			6.97			7.30
Average Balances
Average Loans and Leases	$	11,835,929		$	11,739,785		$	10,878,672		$	11,592,093		$	10,688,424
Average Assets		20,382,633			19,741,139			17,821,004			19,387,693			17,537,570
Average Deposits		17,819,116			17,270,206			15,441,097			16,900,186			15,228,066
Average Shareholders' Equity		1,372,971			1,367,756			1,292,930			1,351,583			1,280,082
Per Share of Common Stock
Book Value	$	34.26		$	33.99		$	32.14		$	34.26		$	32.14
Tangible Book Value		33.47			33.21			31.35			33.47			31.35
Market Value
Closing		76.62			50.52			95.16			76.62			95.16
High		80.38			61.94			95.68			95.53			95.68
Low		49.25			48.77			81.29			46.70			66.54
							December 31,			September 30,			December 31,
								2020			2020			2019
As of Period End:
Balance Sheet Totals
Loans and Leases							$	11,940,020		$	11,793,608		$	10,990,892
Total Assets								20,603,651			20,109,489			18,095,496
Total Deposits								18,211,621			17,738,883			15,784,482
Other Debt								60,481			60,502			85,565
Total Shareholders' Equity								1,374,507			1,361,739			1,286,832
Asset Quality
Non-Performing Assets							$	18,481		$	18,626		$	20,117
Allowance for Credit Losses								216,252			203,496			110,027
Allowance to Loans and Leases Outstanding								1.81	%		1.73	%		1.00	%
Capital Ratios 4
Common Equity Tier 1 Capital Ratio								12.06	%		12.09	%		12.18	%
Tier 1 Capital Ratio								12.06			12.09			12.18
Total Capital Ratio								13.31			13.35			13.28
Tier 1 Leverage Ratio								6.71			6.81			7.25
Total Shareholders' Equity to Total Assets								6.67			6.77			7.11
Tangible Common Equity to Tangible Assets 5								6.53			6.63			6.95
Tangible Common Equity to Risk-Weighted Assets 5								11.89			12.02			11.85
Non-Financial Data
Full-Time Equivalent Employees								2,022			2,038			2,124
Branches								65			67			68
ATMs								357			358			387

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 Regulatory capital ratios as of December 31, 2020 are preliminary.

5 Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 “Reconciliation of Non-GAAP Financial Measures."

Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures								Table 2
		December 31,			September 30,			December 31,
(dollars in thousands)			2020			2020			2019
Total Shareholders' Equity		$	1,374,507		$	1,361,739		$	1,286,832
Less: Goodwill			31,517			31,517			31,517
Tangible Common Equity		$	1,342,990		$	1,330,222		$	1,255,315
Total Assets		$	20,603,651		$	20,109,489		$	18,095,496
Less: Goodwill			31,517			31,517			31,517
Tangible Assets		$	20,572,134		$	20,077,972		$	18,063,979
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements		$	11,295,077		$	11,068,888		$	10,589,061
Total Shareholders' Equity to Total Assets			6.67	%		6.77	%		7.11	%
Tangible Common Equity to Tangible Assets (Non-GAAP)			6.53	%		6.63	%		6.95	%
Tier 1 Capital Ratio			12.06	%		12.09	%		12.18	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)			11.89	%		12.02	%		11.85	%
Note: Risk-Weighted Assets and Regulatory capital ratios as of December 31, 2020 are preliminary.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income													Table 3
	Three Months Ended										Year Ended
	December 31,			September 30,			December 31,				December 31,
(dollars in thousands, except per share amounts)		2020			2020			2019				2020		2019
Interest Income
Interest and Fees on Loans and Leases	$	98,471		$	103,189		$	109,223			$	417,498	$	439,012
Income on Investment Securities
Available-for-Sale		15,449			14,558			16,158				61,294		62,174
Held-to-Maturity		14,113			15,967			18,750				66,055		81,616
Deposits		1			3			8				14		41
Funds Sold		115			149			723				902		3,553
Other		167			151			239				661		1,001
Total Interest Income		128,316			134,017			145,101				546,424		587,397
Interest Expense
Deposits		4,861			5,891			16,407				32,966		68,374
Securities Sold Under Agreements to Repurchase		3,614			3,622			4,071				15,281		17,522
Funds Purchased		5			-			25				95		840
Short-Term Borrowings		-			1			-				62		38
Other Debt		337			337			713				1,698		2,908
Total Interest Expense		8,817			9,851			21,216				50,102		89,682
Net Interest Income		119,499			124,166			123,885				496,322		497,715
Provision for Credit Losses		15,200			28,600			4,750				117,800		16,000
Net Interest Income After Provision for Credit Losses		104,299			95,566			119,135				378,522		481,715
Noninterest Income
Trust and Asset Management		11,239			10,752			11,157				43,456		44,233
Mortgage Banking		6,851			4,047			3,199				17,871		13,686
Service Charges on Deposit Accounts		6,335			6,027			7,835				24,910		30,074
Fees, Exchange, and Other Service Charges		12,143			12,296			14,533				47,056		57,893
Investment Securities Gains (Losses), Net		(1,193	)		(1,121	)		(906	)			9,932		(3,986	)
Annuity and Insurance		670			881			1,272				3,362		6,934
Bank-Owned Life Insurance		2,353			1,806			1,879				7,388		7,015
Other		6,860			7,046			8,733				30,434		27,489
Total Noninterest Income		45,258			41,734			47,702				184,409		183,338
Noninterest Expense
Salaries and Benefits		50,200			51,951			51,664				207,329		216,106
Net Occupancy		14,536			7,281			8,824				39,533		33,800
Net Equipment		9,574			9,223			7,930				35,448		29,295
Data Processing		4,604			4,691			4,828				18,499		18,757
Professional Fees		3,174			2,743			3,257				12,186		10,071
FDIC Insurance		1,484			1,282			1,376				5,780		5,192
Other		15,082			12,778			15,217				55,032		66,006
Total Noninterest Expense		98,654			89,949			93,096				373,807		379,227
Income Before Provision for Income Taxes		50,903			47,351			73,741				189,124		285,826
Provision for Income Taxes		8,589			9,511			15,598				35,320		59,913
Net Income	$	42,314		$	37,840		$	58,143			$	153,804	$	225,913
Basic Earnings Per Share	$	1.06		$	0.95		$	1.46			$	3.87	$	5.59
Diluted Earnings Per Share	$	1.06		$	0.95		$	1.45			$	3.86	$	5.56
Dividends Declared Per Share	$	0.67		$	0.67		$	0.67			$	2.68	$	2.59
Basic Weighted Average Shares		39,773,851			39,745,120			39,880,619				39,726,210		40,384,328
Diluted Weighted Average Shares		39,963,736			39,869,135			40,179,016				39,892,107		40,649,570

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income															Table 4
		Three Months Ended										Year Ended
		December 31,			September 30,			December 31,				December 31,
(dollars in thousands)			2020			2020			2019				2020			2019
Net Income		$	42,314		$	37,840		$	58,143			$	153,804		$	225,913
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities		(961	)		(4,900	)		(5,856	)			43,428			22,677
	Defined Benefit Plans		(5,616	)		374			(3,482	)			(4,494	)		(2,746	)
Other Comprehensive Income (Loss)			(6,577	)		(4,526	)		(9,338	)			38,934			19,931
Comprehensive Income		$	35,737		$	33,314		$	48,805			$	192,738		$	245,844

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition							Table 5
	December 31,			September 30,			December 31,
(dollars in thousands)		2020			2020			2019
Assets
Interest-Bearing Deposits in Other Banks	$	1,646		$	4,233		$	4,979
Funds Sold		333,022			736,524			254,574
Investment Securities
Available-for-Sale		3,791,689			3,190,313			2,619,003
Held-to-Maturity (Fair Value of $3,348,693; $3,288,668; and $3,062,882)		3,262,727			3,198,830			3,042,294
Loans Held for Sale		82,565			-			39,062
Loans and Leases		11,940,020			11,793,608			10,990,892
Allowance for Credit Losses		(216,252	)		(203,496	)		(110,027	)
Net Loans and Leases		11,723,768			11,590,112			10,880,865
Total Earning Assets		19,195,417			18,720,012			16,840,777
Cash and Due from Banks		279,420			260,167			299,105
Premises and Equipment, Net		199,695			199,021			188,388
Operating Lease Right-of-Use Assets		99,542			96,200			100,838
Accrued Interest Receivable		49,303			57,370			46,476
Foreclosed Real Estate		2,332			2,332			2,737
Mortgage Servicing Rights		19,652			21,887			25,022
Goodwill		31,517			31,517			31,517
Bank-Owned Life Insurance		291,480			291,231			287,962
Other Assets		435,293			429,752			272,674
Total Assets	$	20,603,651		$	20,109,489		$	18,095,496
Liabilities
Deposits
Noninterest-Bearing Demand	$	5,749,612		$	5,428,567		$	4,489,525
Interest-Bearing Demand		4,040,733			3,824,448			3,127,205
Savings		6,759,213			6,763,891			6,365,321
Time		1,662,063			1,721,977			1,802,431
Total Deposits		18,211,621			17,738,883			15,784,482
Securities Sold Under Agreements to Repurchase		600,590			602,106			604,306
Other Debt		60,481			60,502			85,565
Operating Lease Liabilities		107,412			103,869			108,210
Retirement Benefits Payable		51,197			43,505			44,504
Accrued Interest Payable		5,117			6,613			8,040
Taxes Payable and Deferred Taxes		2,463			12,124			16,085
Other Liabilities		190,263			180,148			157,472
Total Liabilities		19,229,144			18,747,750			16,808,664
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2020 - 58,285,624 / 40,119,312;
September 30, 2020 - 58,248,690 / 40,060,675;
and December 31, 2019 - 58,166,910 / 40,039,695)		580			580			579
Capital Surplus		591,360			588,632			582,566
Accumulated Other Comprehensive Gain (Loss)		7,822			14,399			(31,112	)
Retained Earnings		1,811,979			1,797,763			1,761,415
Treasury Stock, at Cost (Shares: December 31, 2020 - 18,166,312;
September 30, 2020 - 18,188,015; and December 31, 2019 - 18,127,215)		(1,037,234	)		(1,039,635	)		(1,026,616	)
Total Shareholders' Equity		1,374,507			1,361,739			1,286,832
Total Liabilities and Shareholders' Equity	$	20,603,651		$	20,109,489		$	18,095,496

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																Table 6
							Accum.
							Other
							Compre-
							hensive
	Common Shares		Common		Capital		Income			Retained			Treasury
(dollars in thousands)	Outstanding		Stock		Surplus		(Loss)			Earnings			Stock			Total
Balance as of December 31, 2018	41,499,898		$	577	$	571,704	$	(51,043	)	$	1,641,314		$	(894,352	)	$	1,268,200
Net Income	-			-		-		-			225,913			-			225,913
Other Comprehensive Income	-			-		-		19,931			-			-			19,931
Share-Based Compensation	-			-		8,337		-			-			-			8,337
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits	212,924			2		2,525		-			(334	)		5,385			7,578
Common Stock Repurchased	(1,673,127	)		-		-		-			-			(137,649	)		(137,649	)
Cash Dividends Declared ($2.59 per share)	-			-		-		-			(105,478	)		-			(105,478	)
Balance as of December 31, 2019	40,039,695		$	579	$	582,566	$	(31,112	)	$	1,761,415		$	(1,026,616	)	$	1,286,832
Net Income	-			-		-		-			153,804			-			153,804
Other Comprehensive Income	-			-		-		38,934			-			-			38,934
Cumulative Change in Accounting Principle	-			-		-		-			3,632			-			3,632
Share-Based Compensation	-			-		7,577		-			-			-			7,577
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits	283,482			1		1,217		-			562			7,388			9,168
Common Stock Repurchased	(203,865	)		-		-		-			-			(18,006	)		(18,006	)
Cash Dividends Declared ($2.68 per share)	-			-		-		-			(107,434	)		-			(107,434	)
Balance as of December 31, 2020	40,119,312		$	580	$	591,360	$	7,822		$	1,811,979		$	(1,037,234	)	$	1,374,507

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																		Table 7a
		Three Months Ended						Three Months Ended						Three Months Ended
		December 31, 2020						September 30, 2020						December 31, 2019
		Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	2.2	$	-	0.16	%	$	2.6	$	-	0.45	%	$	3.4	$	-	0.90	%
Funds Sold			451.6		0.1	0.10			584.2		0.1	0.10			177.7		0.7	1.59
Investment Securities
	Available-for-Sale
	Taxable		3,605.8		15.3	1.69			2,918.6		14.3	1.96			2,578.3		15.9	2.46
	Non-Taxable		20.2		0.2	4.33			25.8		0.3	4.22			33.4		0.4	4.35
	Held-to-Maturity
	Taxable		3,246.7		13.9	1.71			3,257.7		15.7	1.93			2,994.7		18.4	2.46
	Non-Taxable		47.1		0.3	2.66			54.1		0.4	2.66			61.7		0.4	2.70
Total Investment Securities			6,919.8		29.7	1.71			6,256.2		30.7	1.96			5,668.1		35.1	2.47
Loans Held for Sale			15.1		0.1	2.98			15.9		0.1	3.24			31.0		0.3	3.67
Loans and Leases 1
	Commercial and Industrial		1,897.4		14.0	2.95			1,917.0		14.1	2.93			1,356.1		13.3	3.90
	Commercial Mortgage		2,768.0		21.7	3.12			2,722.3		21.7	3.18			2,479.7		25.5	4.08
	Construction		257.4		2.3	3.62			234.0		2.1	3.60			179.1		2.1	4.73
	Commercial Lease Financing		112.2		(2.5)	(9.07)			110.7		0.5	1.82			135.4		0.8	2.38
	Residential Mortgage		4,089.7		36.4	3.57			3,988.7		36.7	3.68			3,850.4		36.7	3.81
	Home Equity		1,600.9		13.2	3.28			1,625.2		14.1	3.45			1,683.4		15.7	3.70
	Automobile		706.1		6.4	3.59			708.3		6.4	3.59			715.2		6.5	3.59
	Other 2		404.2		7.0	6.85			433.6		7.6	6.96			479.4		8.5	7.02
Total Loans and Leases			11,835.9		98.5	3.32			11,739.8		103.2	3.50			10,878.7		109.1	3.99
Other			33.3		0.2	2.01			33.3		0.2	1.81			34.9		0.2	2.74
Total Earning Assets 3			19,257.9		128.6	2.66			18,632.0		134.3	2.88			16,793.8		145.4	3.45
Cash and Due from Banks			240.4						234.3						222.2
Other Assets			884.3						874.8						805.0
Total Assets		$	20,382.6					$	19,741.1					$	17,821.0
Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	3,899.5		0.6	0.06		$	3,465.5		0.4	0.04		$	2,990.3		1.0	0.14
	Savings		6,728.8		1.4	0.08			6,886.0		1.7	0.10			6,245.0		8.0	0.51
	Time		1,696.0		2.9	0.68			1,568.3		3.8	0.97			1,842.3		7.4	1.59
Total Interest-Bearing Deposits			12,324.3		4.9	0.16			11,919.8		5.9	0.20			11,077.6		16.4	0.59
Short-Term Borrowings			19.2		-	0.10			-		-	-			5.8		-	1.66
Securities Sold Under Agreements to Repurchase			600.9		3.6	2.35			602.9		3.6	2.35			604.3		4.1	2.64
Other Debt			60.5		0.3	2.22			60.5		0.3	2.22			106.2		0.7	2.67
Total Interest-Bearing Liabilities			13,004.9		8.8	0.27			12,583.2		9.8	0.31			11,793.9		21.2	0.71
Net Interest Income				$	119.8					$	124.5					$	124.2
	Interest Rate Spread					2.39	%					2.57	%					2.74	%
	Net Interest Margin					2.48	%					2.67	%					2.95	%
Noninterest-Bearing Demand Deposits			5,494.8						5,350.4						4,363.5
Other Liabilities			509.9						439.7						370.7
Shareholders' Equity			1,373.0						1,367.8						1,292.9
Total Liabilities and Shareholders' Equity		$	20,382.6					$	19,741.1					$	17,821.0

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 $287,000, $295,000, and $352,000 for the three months ended December 31, 2020, September 30, 2020, and December 31, 2019, respectively.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis												Table 7b
		Year Ended						Year Ended
		December 31, 2020						December 31, 2019
		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	2.2	$	-	0.61	%	$	3.1	$	-	1.33	%
Funds Sold			434.1		0.9	0.21			165.7		3.6	2.14
Investment Securities
	Available-for-Sale
	Taxable		2,961.9		60.3	2.04			2,210.5		58.9	2.66
	Non-Taxable		27.6		1.2	4.36			109.6		4.1	3.78
	Held-to-Maturity
	Taxable		3,125.2		65.0	2.08			3,148.2		78.3	2.49
	Non-Taxable		52.6		1.4	2.66			137.8		4.2	3.04
Total Investment Securities			6,167.3		127.9	2.07			5,606.1		145.5	2.60
Loans Held for Sale			19.4		0.6	3.28			21.7		0.9	3.92
Loans and Leases 1
	Commercial and Industrial		1,797.5		59.3	3.30			1,370.9		57.9	4.23
	Commercial Mortgage		2,666.1		90.9	3.41			2,400.6		102.4	4.27
	Construction		240.1		9.4	3.92			145.2		7.4	5.07
	Commercial Lease Financing		111.3		(1.0)	(0.88)			154.4		3.7	2.43
	Residential Mortgage		3,978.7		146.0	3.67			3,768.2		144.7	3.84
	Home Equity		1,642.7		56.8	3.46			1,689.4		64.1	3.80
	Automobile		709.1		25.3	3.57			694.9		25.1	3.62
	Other 2		446.6		30.9	6.91			464.8		33.3	7.16
Total Loans and Leases			11,592.1		417.6	3.60			10,688.4		438.6	4.10
Other			33.7		0.7	1.96			35.1		1.0	2.85
Total Earning Assets 3			18,248.8		547.7	3.00			16,520.1		589.6	3.57
Cash and Due from Banks			263.8						234.0
Other Assets			875.1						783.5
Total Assets		$	19,387.7					$	17,537.6
Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	3,426.8		2.5	0.07		$	2,945.9		5.0	0.17
	Savings		6,702.7		12.4	0.19			6,034.0		32.4	0.54
	Time		1,708.1		18.1	1.06			1,816.3		31.0	1.71
Total Interest-Bearing Deposits			11,837.6		33.0	0.28			10,796.2		68.4	0.63
Short-Term Borrowings			33.5		0.2	0.47			36.5		0.9	2.41
Securities Sold Under Agreements to Repurchase			602.7		15.2	2.54			531.9		17.5	3.29
Other Debt			62.1		1.7	2.73			111.8		2.9	2.60
Total Interest-Bearing Liabilities			12,535.9		50.1	0.40			11,476.4		89.7	0.78
Net Interest Income				$	497.6					$	499.9
	Interest Rate Spread					2.60	%					2.79	%
	Net Interest Margin					2.73	%					3.03	%
Noninterest-Bearing Demand Deposits			5,062.6						4,431.9
Other Liabilities			437.6						349.2
Shareholders' Equity			1,351.6						1,280.1
Total Liabilities and Shareholders' Equity		$	19,387.7					$	17,537.6

1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

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

3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1,297,000 and $2,230,000 for the year ended December 31, 2020 and December 31, 2019, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended December 31, 2020
	Compared to September 30, 2020
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Investment Securities
Available-for-Sale
Taxable	$	3.2		$	(2.2	)	$	1.0
Non-Taxable		(0.1	)		-			(0.1	)
Held-to-Maturity
Taxable		(0.1	)		(1.7	)		(1.8	)
Non-Taxable		(0.1	)		-			(0.1	)
Total Investment Securities		2.9			(3.9	)		(1.0	)
Loans and Leases
Commercial and Industrial		(0.2	)		0.1			(0.1	)
Commercial Mortgage		0.4			(0.4	)		-
Construction		0.2			-			0.2
Commercial Lease Financing		-			(3.0	)		(3.0	)
Residential Mortgage		0.9			(1.2	)		(0.3	)
Home Equity		(0.2	)		(0.7	)		(0.9	)
Other 2		(0.5	)		(0.1	)		(0.6	)
Total Loans and Leases		0.6			(5.3	)		(4.7	)
Total Change in Interest Income		3.5			(9.2	)		(5.7	)
Change in Interest Expense:
Interest-Bearing Deposits
Demand		-			0.2			0.2
Savings		-			(0.3	)		(0.3	)
Time		0.3			(1.2	)		(0.9	)
Total Interest-Bearing Deposits		0.3			(1.3	)		(1.0	)
Total Change in Interest Expense		0.3			(1.3	)		(1.0	)
Change in Net Interest Income	$	3.2		$	(7.9	)	$	(4.7	)

1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

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

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8b
	Three Months Ended December 31, 2020
	Compared to December 31, 2019
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	0.5		$	(1.1	)	$	(0.6	)
Investment Securities
Available-for-Sale
Taxable		5.2			(5.8	)		(0.6	)
Non-Taxable		(0.2	)		-			(0.2	)
Held-to-Maturity
Taxable		1.5			(6.0	)		(4.5	)
Non-Taxable		(0.1	)		-			(0.1	)
Total Investment Securities		6.4			(11.8	)		(5.4	)
Loans Held for Sale		(0.1	)		(0.1	)		(0.2	)
Loans and Leases
Commercial and Industrial		4.5			(3.8	)		0.7
Commercial Mortgage		2.7			(6.5	)		(3.8	)
Construction		0.8			(0.6	)		0.2
Commercial Lease Financing		(0.1	)		(3.2	)		(3.3	)
Residential Mortgage		2.2			(2.5	)		(0.3	)
Home Equity		(0.8	)		(1.7	)		(2.5	)
Automobile		(0.1	)		-			(0.1	)
Other 2		(1.3	)		(0.2	)		(1.5	)
Total Loans and Leases		7.9			(18.5	)		(10.6	)
Total Change in Interest Income		14.7			(31.5	)		(16.8	)
Change in Interest Expense:
Interest-Bearing Deposits
Demand		0.3			(0.7	)		(0.4	)
Savings		0.6			(7.2	)		(6.6	)
Time		(0.5	)		(4.0	)		(4.5	)
Total Interest-Bearing Deposits		0.4			(11.9	)		(11.5	)
Securities Sold Under Agreements to Repurchase		(0.1	)		(0.4	)		(0.5	)
Other Debt		(0.3	)		(0.1	)		(0.4	)
Total Change in Interest Expense		-			(12.4	)		(12.4	)
Change in Net Interest Income	$	14.7		$	(19.1	)	$	(4.4	)

1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

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

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8c
	Year Ended December 31, 2020
	Compared to December 31, 2019
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	2.4		$	(5.1	)	$	(2.7	)
Investment Securities
Available-for-Sale
Taxable		17.2			(15.8	)		1.4
Non-Taxable		(3.5	)		0.6			(2.9	)
Held-to-Maturity
Taxable		(0.6	)		(12.7	)		(13.3	)
Non-Taxable		(2.3	)		(0.5	)		(2.8	)
Total Investment Securities		10.8			(28.4	)		(17.6	)
Loans Held for Sale		(0.1	)		(0.2	)		(0.3	)
Loans and Leases
Commercial and Industrial		15.7			(14.3	)		1.4
Commercial Mortgage		10.5			(22.0	)		(11.5	)
Construction		4.0			(2.0	)		2.0
Commercial Lease Financing		(0.8	)		(3.9	)		(4.7	)
Residential Mortgage		7.9			(6.6	)		1.3
Home Equity		(1.7	)		(5.6	)		(7.3	)
Automobile		0.5			(0.3	)		0.2
Other 2		(1.3	)		(1.1	)		(2.4	)
Total Loans and Leases		34.8			(55.8	)		(21.0	)
Other		-			(0.3	)		(0.3	)
Total Change in Interest Income		47.9			(89.8	)		(41.9	)
Change in Interest Expense:
Interest-Bearing Deposits
Demand		0.7			(3.2	)		(2.5	)
Savings		3.3			(23.3	)		(20.0	)
Time		(1.7	)		(11.2	)		(12.9	)
Total Interest-Bearing Deposits		2.3			(37.7	)		(35.4	)
Short-Term Borrowings		(0.1	)		(0.6	)		(0.7	)
Securities Sold Under Agreements to Repurchase		2.1			(4.4	)		(2.3	)
Other Debt		(1.3	)		0.1			(1.2	)
Total Change in Interest Expense		3.0			(42.6	)		(39.6	)
Change in Net Interest Income	$	44.9		$	(47.2	)	$	(2.3	)

1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

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

Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits											Table 9
	Three Months Ended								Year Ended
	December 31,			September 30,		December 31,			December 31,
(dollars in thousands)		2020			2020		2019			2020		2019
Salaries	$	33,907		$	34,046	$	33,465		$	134,178	$	132,237
Incentive Compensation		3,084			2,683		4,864			9,153		21,913
Share-Based Compensation		2,029			1,442		1,475			6,783		8,573
Commission Expense		2,164			1,800		2,080			6,985		6,474
Retirement and Other Benefits		5,212			4,164		4,279			18,528		18,151
Payroll Taxes		2,292			2,624		2,386			12,241		11,795
Medical, Dental, and Life Insurance		1,523			3,422		2,903			12,917		15,202
Separation Expense		(11	)		1,770		212			6,544		1,761
Total Salaries and Benefits	$	50,200		$	51,951	$	51,664		$	207,329	$	216,106

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances										Table 10
		December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)			2020		2020		2020		2020		2019
Commercial
	Commercial and Industrial	$	1,875,293	$	1,908,482	$	1,956,939	$	1,558,232	$	1,379,152
	Commercial Mortgage		2,854,829		2,745,611		2,707,534		2,616,243		2,518,051
	Construction		259,798		250,943		245,099		245,390		194,170
	Lease Financing		110,766		111,831		113,187		110,704		122,454
Total Commercial			5,100,686		5,016,867		5,022,759		4,530,569		4,213,827
Consumer
	Residential Mortgage		4,130,513		4,044,228		3,989,393		3,928,183		3,891,100
	Home Equity		1,604,538		1,605,486		1,640,887		1,692,154		1,676,073
	Automobile		708,800		709,937		700,702		716,214		720,286
	Other 1		395,483		417,090		451,629		485,660		489,606
Total Consumer			6,839,334		6,776,741		6,782,611		6,822,211		6,777,065
Total Loans and Leases		$	11,940,020	$	11,793,608	$	11,805,370	$	11,352,780	$	10,990,892
Deposits
		December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)			2020		2020		2020		2020		2019
Consumer		$	9,347,725	$	8,903,808	$	8,766,885	$	8,294,464	$	8,118,494
Commercial			7,302,832		7,159,531		7,295,033		6,358,583		6,324,214
Public and Other			1,561,064		1,675,544		1,361,237		1,402,314		1,341,774
Total Deposits		$	18,211,621	$	17,738,883	$	17,423,155	$	16,055,361	$	15,784,482

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

Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More														Table 11
		December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)			2020			2020			2020			2020			2019
Non-Performing Assets
Non-Accrual Loans and Leases
	Commercial
	Commercial and Industrial	$	441		$	475		$	459		$	634		$	830
	Commercial Mortgage		8,527			8,615			8,672			9,048			9,244
	Total Commercial		8,968			9,090			9,131			9,682			10,074
	Consumer
	Residential Mortgage		3,223			3,543			5,888			4,330			4,125
	Home Equity		3,958			3,661			5,176			4,086			3,181
	Total Consumer		7,181			7,204			11,064			8,416			7,306
Total Non-Accrual Loans and Leases			16,149			16,294			20,195			18,098			17,380
Foreclosed Real Estate			2,332			2,332			2,506			2,506			2,737
Total Non-Performing Assets		$	18,481		$	18,626		$	22,701		$	20,604		$	20,117
Accruing Loans and Leases Past Due 90 Days or More
Consumer
	Residential Mortgage	$	5,274		$	6,607		$	4,937		$	3,024		$	1,839
	Home Equity		3,187			2,571			3,519			3,426			4,125
	Automobile		925			156			133			866			949
	Other 1		1,160			258			296			1,205			1,493
Total Consumer			10,546			9,592			8,885			8,521			8,406
Total Accruing Loans and Leases Past Due 90 Days or More		$	10,546		$	9,592		$	8,885		$	8,521		$	8,406
Restructured Loans on Accrual Status
	and Not Past Due 90 Days or More	$	68,065		$	58,650		$	59,713		$	61,425		$	63,103
Total Loans and Leases		$	11,940,020		$	11,793,608		$	11,805,370		$	11,352,780		$	10,990,892
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.14	%		0.14	%		0.17	%		0.16	%		0.16	%
Ratio of Non-Performing Assets to Total Loans and Leases
	and Foreclosed Real Estate		0.15	%		0.16	%		0.19	%		0.18	%		0.18	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and
	Leases and Commercial Foreclosed Real Estate		0.18	%		0.18	%		0.18	%		0.21	%		0.24	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
	and Leases and Consumer Foreclosed Real Estate		0.14	%		0.14	%		0.20	%		0.16	%		0.15	%
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		0.24	%		0.24	%		0.27	%		0.26	%		0.26	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter		$	18,626		$	22,701		$	20,604		$	20,117		$	21,645
Additions			434			938			5,856			1,754			883
Reductions
	Payments		(490	)		(3,729	)		(2,736	)		(315	)		(495	)
	Return to Accrual Status		-			(1,035	)		(822	)		(437	)		(1,673	)
	Sales of Foreclosed Real Estate		-			(175	)		-			(231	)		(201	)
	Charge-offs/Write-downs		(89	)		(74	)		(201	)		(284	)		(42	)
Total Reductions			(579	)		(5,013	)		(3,759	)		(1,267	)		(2,411	)
Balance at End of Quarter		$	18,481		$	18,626		$	22,701		$	20,604		$	20,117

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

Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses															Table 12
			Three Months Ended									Year Ended
			December 31,			September 30,			December 31,			December 31,
(dollars in thousands)				2020			2020			2019			2020			2019
Balance at Beginning of Period			$	205,813		$	175,958		$	115,758		$	116,849		$	113,515
CECL Adoption (Day 1) Impact				-			-			-			(5,072	)		-
Loans and Leases Charged-Off
	Commercial
		Commercial and Industrial		(177	)		(171	)		(307	)		(1,697	)		(1,122	)
		Commercial Mortgage		-			-			-			-			(1,616	)
	Consumer
		Residential Mortgage		(120	)		-			(50	)		(204	)		(112	)
		Home Equity		(81	)		(43	)		(245	)		(397	)		(900	)
		Automobile		(393	)		(489	)		(1,990	)		(6,496	)		(7,130	)
		Other 1		(2,460	)		(1,644	)		(3,651	)		(12,244	)		(13,075	)
Total Loans and Leases Charged-Off				(3,231	)		(2,347	)		(6,243	)		(21,038	)		(23,955	)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
		Commercial and Industrial		244			231			293			2,288			1,513
		Commercial Mortgage		-			-			-			40			-
	Consumer
		Residential Mortgage		497			414			699			1,292			1,927
		Home Equity		868			727			577			2,892			2,339
		Automobile		910			1,313			512			3,775			2,961
		Other 1		968			1,119			503			3,613			2,549
Total Recoveries on Loans and Leases Previously Charged-Off				3,487			3,804			2,584			13,900			11,289
Net Loans and Leases Recovered (Charged-Off)				256			1,457			(3,659	)		(7,138	)		(12,666	)
Provision for Credit Losses				15,200			28,600			4,750			117,800			16,000
Provision for Unfunded Commitments				34			(202	)		-			(1,136	)		-
Balance at End of Period 2			$	221,303		$	205,813		$	116,849		$	221,303		$	116,849
Components
Allowance for Credit Losses			$	216,252		$	203,496		$	110,027		$	216,252		$	110,027
Allowance for Accrued Interest Receivable 3				2,700			-			-			2,700			-
Reserve for Unfunded Commitments				2,351			2,317			6,822			2,351			6,822
Total Reserve for Credit Losses			$	221,303		$	205,813		$	116,849		$	221,303		$	116,849
Average Loans and Leases Outstanding			$	11,835,929		$	11,739,785		$	10,878,672		$	11,592,093		$	10,688,424
Ratio of Net Loans and Leases Charged-Off (Recovered) to
	Average Loans and Leases Outstanding (annualized)			(0.01	%)		(0.05	%)		0.13	%		0.06	%		0.12	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding				1.81	%		1.73	%		1.00	%		1.81	%		1.00	%

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

2 Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.

3 On December 31 2020, the Company recorded a $2.7 million reserve on accrued interest receivable related to loans in which payment forbearances were granted to borrowers impacted by the COVID-19 pandemic. The reserve was recorded as a contra-asset against accrued interest receivable with the offset to provision for credit losses.

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information										Table 13a
	Consumer			Commercial			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			and Other			Total
Three Months Ended December 31, 2020
Net Interest Income	$	71,707		$	44,373		$	3,419		$	119,499
Provision for Credit Losses		(128	)		(129	)		15,457			15,200
Net Interest Income (Loss) After Provision for Credit Losses		71,835			44,502			(12,038	)		104,299
Noninterest Income		35,091			8,040			2,127			45,258
Noninterest Expense		(78,433	)		(15,742	)		(4,479	)		(98,654	)
Income (Loss) Before Income Taxes		28,493			36,800			(14,390	)		50,903
Provision for Income Taxes		(7,242	)		(9,804	)		8,457			(8,589	)
Net Income (Loss)	$	21,251		$	26,996		$	(5,933	)	$	42,314
Total Assets as of December 31, 2020	$	7,478,813		$	5,116,807		$	8,008,031		$	20,603,651
Three Months Ended December 31, 2019 1
Net Interest Income	$	76,099		$	45,475		$	2,311		$	123,885
Provision for Credit Losses		3,819			(165	)		1,096			4,750
Net Interest Income After Provision for Credit Losses		72,280			45,640			1,215			119,135
Noninterest Income		35,306			10,624			1,772			47,702
Noninterest Expense		(68,494	)		(21,071	)		(3,531	)		(93,096	)
Income (Loss) Before Income Taxes		39,092			35,193			(544	)		73,741
Provision for Income Taxes		(9,909	)		(6,345	)		656			(15,598	)
Net Income	$	29,183		$	28,848		$	112		$	58,143
Total Assets as of December 31, 2019 1	$	7,054,511		$	4,254,261		$	6,786,724		$	18,095,496

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

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information										Table 13b
	Consumer			Commercial			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			and Other			Total
Year Ended December 31, 2020
Net Interest Income	$	292,710		$	188,626		$	14,986		$	496,322
Provision for Credit Losses		8,087			(948	)		110,661			117,800
Net Interest Income (Loss) After Provision for Credit Losses		284,623			189,574			(95,675	)		378,522
Noninterest Income		128,400			34,523			21,486			184,409
Noninterest Expense		(289,177	)		(63,294	)		(21,336	)		(373,807	)
Income (Loss) Before Income Taxes		123,846			160,803			(95,525	)		189,124
Provision for Income Taxes		(31,476	)		(40,081	)		36,237			(35,320	)
Net Income (Loss)	$	92,370		$	120,722		$	(59,288	)	$	153,804
Total Assets as of December 31, 2020	$	7,478,813		$	5,116,807		$	8,008,031		$	20,603,651
Year Ended December 31, 2019 1
Net Interest Income	$	305,803		$	185,259		$	6,653		$	497,715
Provision for Credit Losses		11,685			976			3,339			16,000
Net Interest Income After Provision for Credit Losses		294,118			184,283			3,314			481,715
Noninterest Income		142,378			33,362			7,598			183,338
Noninterest Expense		(281,662	)		(84,616	)		(12,949	)		(379,227	)
Income Before Income Taxes		154,834			133,029			(2,037	)		285,826
Provision for Income Taxes		(38,654	)		(28,852	)		7,593			(59,913	)
Net Income	$	116,180		$	104,177		$	5,556		$	225,913
Total Assets as of December 31, 2019 1	$	7,054,511		$	4,254,261		$	6,786,724		$	18,095,496

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

Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data																Table 14
	Three Months Ended
	December 31,				September 30,				June 30,			March 31,				December 31,
(dollars in thousands, except per share amounts)		2020				2020				2020			2020				2019
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	98,471			$	103,189			$	107,628		$	108,210			$	109,223
Income on Investment Securities
Available-for-Sale		15,449				14,558				14,576			16,711				16,158
Held-to-Maturity		14,113				15,967				16,723			19,252				18,750
Deposits		1				3				1			9				8
Funds Sold		115				149				92			546				723
Other		167				151				125			218				239
Total Interest Income		128,316				134,017				139,145			144,946				145,101
Interest Expense
Deposits		4,861				5,891				7,954			14,260				16,407
Securities Sold Under Agreements to Repurchase		3,614				3,622				4,020			4,025				4,071
Funds Purchased		5				-				18			72				25
Short-Term Borrowings		-				1				22			39				-
Other Debt		337				337				440			584				713
Total Interest Expense		8,817				9,851				12,454			18,980				21,216
Net Interest Income		119,499				124,166				126,691			125,966				123,885
Provision for Credit Losses		15,200				28,600				40,400			33,600				4,750
Net Interest Income After Provision for Credit Losses		104,299				95,566				86,291			92,366				119,135
Noninterest Income
Trust and Asset Management		11,239				10,752				10,550			10,915				11,157
Mortgage Banking		6,851				4,047				4,278			2,695				3,199
Service Charges on Deposit Accounts		6,335				6,027				5,097			7,451				7,835
Fees, Exchange, and Other Service Charges		12,143				12,296				9,417			13,200				14,533
Investment Securities Gains (Losses), Net		(1,193	)			(1,121	)			13,216			(970	)			(906	)
Annuity and Insurance		670				881				883			928				1,272
Bank-Owned Life Insurance		2,353				1,806				1,649			1,580				1,879
Other		6,860				7,046				6,178			10,350				8,733
Total Noninterest Income		45,258				41,734				51,268			46,149				47,702
Noninterest Expense
Salaries and Benefits		50,200				51,951				50,715			54,463				51,664
Net Occupancy		14,536				7,281				8,761			8,955				8,824
Net Equipment		9,574				9,223				8,195			8,456				7,930
Data Processing		4,604				4,691				4,416			4,788				4,828
Professional Fees		3,174				2,743				3,061			3,208				3,257
FDIC Insurance		1,484				1,282				1,558			1,456				1,376
Other		15,082				12,778				12,186			14,986				15,217
Total Noninterest Expense		98,654				89,949				88,892			96,312				93,096
Income Before Provision for Income Taxes		50,903				47,351				48,667			42,203				73,741
Provision for Income Taxes		8,589				9,511				9,759			7,461				15,598
Net Income	$	42,314			$	37,840			$	38,908		$	34,742			$	58,143
Basic Earnings Per Share	$	1.06			$	0.95			$	0.98		$	0.88			$	1.46
Diluted Earnings Per Share	$	1.06			$	0.95			$	0.98		$	0.87			$	1.45
Balance Sheet Totals
Loans and Leases	$	11,940,020			$	11,793,608			$	11,805,370		$	11,352,780			$	10,990,892
Total Assets		20,603,651				20,109,489				19,769,942			18,542,233				18,095,496
Total Deposits		18,211,621				17,738,883				17,423,155			16,055,361				15,784,482
Total Shareholders' Equity		1,374,507				1,361,739				1,352,082			1,327,929				1,286,832
Performance Ratios
Return on Average Assets		0.83		%		0.76		%		0.82	%		0.77		%		1.29		%
Return on Average Shareholders' Equity		12.26				11.01				11.58			10.64				17.84
Efficiency Ratio 1		59.88				54.22				49.95			55.96				54.26
Net Interest Margin 2		2.48				2.67				2.83			2.96				2.95

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

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

Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends																		Table 15
	Eleven Months Ended					Year Ended
($ in millions; jobs in thousands)	November 30, 2020					December 31, 2019						December 31, 2018
Hawaii Economic Trends
State General Fund Revenues 1	$	5,894.5	(12.5	)	%	$	7,316.5		5.5		%	$	6,933.1			6.9		%
General Excise and Use Tax Revenue 1	$	2,797.3	(15.7	)	%	$	3,602.2		5.1		%	$	3,426.5			2.3		%
Jobs 2		591.0					648.9						649.9
									November 30,			December 31,
(spot rates)									2020			2019				2018
Unemployment3
Statewide, seasonally adjusted									10.1		%		2.7		%	2.6		%
Oahu									8.8				2.1			2.2
Island of Hawaii									9.8				2.8			2.9
Maui									16.0				2.2			2.2
Kauai									13.5				2.4			2.3
						December 31,
(percentage change, except months of inventory)							2020		2019				2018			2017
Housing Trends (Single Family Oahu) 4
Median Home Price							5.2	%	(0.1	)	%		4.6		%	2.7		%
Home Sales Volume (units)							2.3	%	3.9		%		(7.7	)	%	6.3		%
Months of Inventory							1.4		2.5				2.8			2.1
						Monthly Visitor Arrivals,						Percentage Change
(in thousands)						Not Seasonally Adjusted						from Previous Year
Tourism 5
November 30, 2020									183.8							(77.3	)
October 31, 2020									76.6							(90.4	)
September 30, 2020									18.9							(97.4	)
August 31, 2020									22.3							(97.6	)
July 31, 2020									22.6							(97.7	)
June 30, 2020									17.1							(98.2	)
May 31, 2020									9.1							(98.9	)
April 30, 2020									4.6							(99.5	)
March 31, 2020									434.9							(53.7	)
February 29, 2020									828.1							5.8
January 31, 2020									862.6							5.1
December 31, 2019									954.3							6.0
November 30, 2019									809.1							3.9
October 31, 2019									796.2							4.3
September 30, 2019									738.2							3.1
August 31, 2019									926.4							9.6
July 31, 2019									995.2							5.9
June 30, 2019									951.6							6.1
May 31, 2019									841.4							4.6
April 30, 2019									856.3							6.6
March 31, 2019									939.1							3.9
February 28, 2019									782.7							0.5
January 31, 2019									820.6							3.0

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

2 Source: U. S. Bureau of Labor Statistics

3 Source: UHERO for 2020 and Hawaii Department of Labor and Industrial Relations for 2019 and 2018. County jobs data not seasonally adjusted.

4 Source: Honolulu Board of REALTORS

5 Source: Hawaii Tourism Authority

 

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