Bank of Hawaii Corporation Fourth Quarter 2021 Financial Results

By: Bank of Hawaii Corporation via Business Wire

January 24, 2022 at 06:45 AM EST

2021 Record Earnings of $6.25 Per Diluted Common Share
2021 Net Income $253.4 Million
Diluted Earnings Per Common Share $1.55 for the Fourth Quarter of 2021
Net Income $63.8 Million for the Fourth Quarter of 2021
Board of Directors Declares Dividend of $0.70 Per Common Share

Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per common share of $6.25 for the full year of 2021, compared with diluted earnings per common share of $3.86 for the full year of 2020. Net income for the year was $253.4 million, up 64.7% from the previous year. Return on average assets for the full year of 2021 was 1.14%, compared with 0.79% in 2020. Return on common equity for the full year of 2021 was 17.92%, compared with 11.38% in 2020.

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“Bank of Hawaii finished 2021 with solid financial performance despite the continued impacts of the COVID-19 pandemic," said Peter Ho, Chairman, President, and CEO. “Core loan balances grew 6.2% in 2021 and deposits surpassed $20 billion, growing 11.8% in 2021. Overall asset quality remained good, and capital and liquidity remain strong as we finished the year. During the year, we continued making significant progress on our strategic initiatives which position us well for continued growth in the future.”

Diluted earnings per common share for the fourth quarter of 2021 was $1.55, compared with diluted earnings per common share of $1.52 in the previous quarter and $1.06 in the same quarter of 2020. Net income for the fourth quarter of 2021 was $63.8 million, up 2.9% from the third quarter of 2021 and up 50.9% from the fourth quarter of 2020.

Financial Highlights

The return on average assets for the fourth quarter of 2021 was 1.12% compared with 1.07% in the previous quarter and 0.83% in the same quarter of 2020.

The return on average common equity for the fourth quarter of 2021 was 17.40% compared with 17.08% in the previous quarter and 12.26% in the same quarter of 2020.

Net interest income for the fourth quarter of 2021 was $126.4 million, a decrease of 0.3% from the third quarter of 2021 and an increase of 5.8% from the fourth quarter of 2020. Net interest margin was 2.34% in the fourth quarter of 2021, an increase of 2 basis points from the previous quarter and a decrease of 14 basis points from the same quarter of 2020.
- The decrease in the net interest margin from the prior year is largely due to higher levels of liquidity from continued strong deposit growth and lower interest rates, partially offset by higher fees from Paycheck Protection Program (“PPP”) loans, deployment of excess liquidity and core loan growth.
- One-time significant items in the fourth quarter of 2021 included a negative $0.9 million adjustment to deferred mortgage loan fees related to prior quarters which had a negative impact of 2 basis points on the net interest margin.
- One-time significant items 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.

The provision for credit losses for the fourth quarter of 2021 was a net benefit of $9.7 million compared with a net benefit of $10.4 million in the previous quarter and net expense of $15.2 million in the same quarter of 2020.

Noninterest income was $42.6 million in the fourth quarter of 2021, an increase of 2.9% from previous quarter and a decrease of 5.9% from the same quarter of 2020.
- The decrease from the fourth quarter of 2020 was primarily driven by a decrease in customer derivative program and mortgage banking income.

Noninterest expense was $101.7 million in the fourth quarter of 2021, an increase of 5.3% from the previous quarter and 3.1% from the same quarter of 2020.
- One-time significant items in the fourth quarter of 2021 included $1.2 million related to an increase in vacation carryover limits.
- One-time significant items in the third quarter of 2021 included a gain of $6.3 million related to the sale of property partially offset by $3.8 million of fees related to the early termination of repurchase agreements and $1.2 million in severance.
- One-time significant items 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 and a charge of $0.8 million related to the true-up of amortization on an investment.

The efficiency ratio during the fourth quarter of 2021 was 60.18% compared with 57.38% in the previous quarter and 59.88% during the same quarter of 2020.

The effective tax rate for the fourth quarter of 2021 was 17.08% compared with 24.40% in the previous quarter and 16.87% during the same quarter of 2020.
- The fourth quarter of 2021 includes a $3.6 million benefit due to larger than expected tax credits from 2020 and a reduction in the valuation allowance related to low-income housing partnerships.
- The fourth quarter of 2020 includes a $1.6 million benefit from return to provision adjustment.

Asset Quality

The Company’s overall asset quality continued to remain good during the fourth quarter of 2021.

Total non-performing assets were $19.0 million at December 31, 2021, down by $1.7 million from September 30, 2021 and up $0.5 million from December 31, 2020. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.15% at the end of the quarter, down 2 basis points from the end of the prior quarter and flat compared to the end of the same quarter of 2020.

Net loan and lease charge-offs during the fourth quarter of 2021 were $0.7 million or 0.02% annualized of total average loans and leases outstanding.
- Net loan and lease charge-offs for the fourth quarter of 2021 were comprised of charge-offs of $3.3 million partially offset by recoveries of $2.6 million.
- Compared to the prior quarter, net loan and lease charge-offs decreased by $0.5 million or 2 basis points annualized on total average loans and leases outstanding.
- Compared to the fourth quarter of 2020, net loan and lease charge-offs increased by $0.9 million or 3 basis points annualized on total average loans and leases outstanding.

The allowance for credit losses on loans and leases was $157.8 million at December 31, 2021, a decrease of $10.1 million from September 30, 2021 and $58.4 million from December 31, 2020. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.29% at the end of the quarter, down 10 basis points from the end of the prior quarter and down 52 basis points from the end of the same quarter of 2020.

Balance Sheet

Total assets were $22.8 billion at December 31, 2021, a decrease of 0.8% from September 30, 2021 and an increase of 10.6% from December 31, 2020.

The investment securities portfolio was $9.0 billion at December 31, 2021, a decrease of 3.1% from September 30, 2021 and an increase of 27.2% from December 31, 2020.
- The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.
- The increase from prior year is primarily due to growth in deposits that outpaced loan growth.

Total loans and leases were $12.3 billion at December 31, 2021, an increase of 1.5% from September 30, 2021 and 2.7% from December 31, 2020.
- Total loans and leases excluding PPP loans were $12.1 billion at December 31, 2021, an increase of 2.8% from September 30, 2021 and an increase of 6.2% from December 31, 2020.

Total deposits were $20.4 billion at December 31, 2021, a decrease of 0.7% from September 30, 2021 and an increase of 11.8% from December 31, 2020.

Capital and Dividends

The Tier 1 Capital Ratio was 13.56% at December 31, 2021 compared with 13.47% at September 30, 2021 and 12.06% at December 31, 2020.
- The increase from the same quarter in 2020 was driven by the issuance of $180 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A in the second quarter of 2021.

The Tier 1 Leverage Ratio was 7.32% at December 31, 2021 compared with 7.10% at September 30, 2021 and 6.71% at December 31, 2020.
- The increase from the same quarter in 2020 was driven by the aforementioned issuance of preferred stock in the second quarter of 2021.

The Company repurchased 87.5 thousand shares of common stock at a total cost of $7.3 million under its share repurchase program in the fourth quarter of 2021 at an average cost of $83.83 per share repurchased.
- Total remaining buyback authority under the share repurchase program was $85.7 million at December 31, 2021.

The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on March 14, 2022 to shareholders of record at the close of business on February 28, 2022.

On January 4, 2022, the Board of Directors declared the quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, on its preferred stock. The depositary shares representing the Series A Preferred Stock are traded on the NYSE under the symbol “BOH.PRA.” The dividend will be payable on February 1, 2022 to shareholders of record of the preferred stock at the close of business on January 18, 2022.

Conference Call Information

The Company will review its 2021 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/wajqjveu.
The toll-free number for the teleconference 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 of the conference call will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, January 24, 2022. 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 3179105 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, 2020 and its Form 10-Q for the fiscal quarters ended March 31, 2021 and June 30, 2021 and September 30, 2021, 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)		2021				2021				2020			2021				2020
For the Period:
Operating Results
Net Interest Income	$	126,388			$	126,819			$	119,499		$	497,290			$	496,322
Provision for Credit Losses ¹		(9,700	)			(10,400	)			15,200			(50,500	)			117,800
Total Noninterest Income		42,574				41,378				45,258			171,353				184,409
Total Noninterest Expense		101,678				96,519				98,654			393,589				373,807
Net Income		63,837				62,053				42,314			253,372				153,804
Basic Earnings Per Common Share		1.56				1.53				1.06			6.29				3.87
Diluted Earnings Per Common Share		1.55				1.52				1.06			6.25				3.86
Dividends Declared Per Common Share		0.70				0.70				0.67			2.74				2.68

Performance Ratios
Return on Average Assets		1.12		%		1.07		%		0.83	%		1.14		%		0.79	%
Return on Average Shareholders' Equity		15.92				15.41				12.26			16.94				11.38
Return on Average Common Equity		17.40				17.08				12.26			17.92				11.38
Efficiency Ratio ²		60.18				57.38				59.88			58.86				54.91
Net Interest Margin ³		2.34				2.32				2.48			2.36				2.73
Dividend Payout Ratio ⁴		44.87				45.75				63.21			43.56				69.25
Average Shareholders' Equity to Average Assets		7.02				6.95				6.74			6.73				6.97

Average Balances
Average Loans and Leases	$	12,086,705			$	11,958,321			$	11,835,929		$	12,023,669			$	11,592,093
Average Assets		22,666,280				22,993,036				20,382,633			22,227,156				19,387,693
Average Deposits		20,222,470				20,473,777				17,819,116			19,771,147				16,900,186
Average Shareholders' Equity		1,590,600				1,598,076				1,372,971			1,495,586				1,351,583

Per Share of Common Stock
Book Value ⁵	$	35.57			$	35.16			$	34.26		$	35.57			$	34.26
Tangible Book Value		34.78				34.38				33.47			34.78				33.47
Market Value
Closing		83.76				82.17				76.62			83.76				76.62
High		88.96				87.12				80.38			99.10				95.53
Low		78.73				75.68				49.25			75.65				46.70

									December 31,			September 30,				December 31,
										2021			2021				2020
As of Period End:
Balance Sheet Totals
Loans and Leases									$	12,259,076		$	12,072,750			$	11,940,020
Total Assets										22,784,941			22,965,383				20,603,651
Total Deposits										20,360,108			20,493,678				18,211,621
Other Debt										10,391			10,414				60,481
Total Shareholders' Equity										1,611,611			1,597,109				1,374,507

Asset Quality
Non-Performing Assets									$	18,966		$	20,620			$	18,481
Allowance for Credit Losses - Loans and Leases										157,821			167,920				216,252
Allowance to Loans and Leases Outstanding ⁶										1.29	%		1.39		%		1.81	%

Capital Ratios ⁷
Common Equity Tier 1 Capital Ratio										12.12	%		12.02		%		12.06	%
Tier 1 Capital Ratio										13.56			13.47				12.06
Total Capital Ratio										14.81			14.72				13.31
Tier 1 Leverage Ratio										7.32			7.10				6.71
Total Shareholders' Equity to Total Assets										7.07			6.95				6.67
Tangible Common Equity to Tangible Assets⁸										6.15			6.04				6.53
Tangible Common Equity to Risk-Weighted Assets⁸										11.44			11.46				11.89

Non-Financial Data
Full-Time Equivalent Employees										2,056			2,049				2,022
Branches										54			54				65
ATMs										307			303				357

¹ Provision for Credit Losses for 2021 includes Provision for Unfunded Commitments and Accrued Interest Receivable, 2020 represents only Provisions for Loans and Leases.
² Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
³ Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
⁴ Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.
⁵ Book Value Per Share of Common Stock was revised from $35.30 for the three months ended September 30, 2021.
⁶ The numerator comprises the Allowance for Credit Losses - Loans and Leases.
⁷ Regulatory capital ratios as of December 31, 2021 are preliminary.
⁸Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. Tangible common equity is defined by the Company
as common shareholders' equity minus goodwill. See Table 2 “Reconciliation of Non-GAAP Financial Measures."

Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures								Table 2
		December 31,			September 30,			December 31,
(dollars in thousands)			2021			2021			2020

Total Shareholders' Equity		$	1,611,611		$	1,597,109		$	1,374,507
Less:	Preferred Stock		180,000			180,000			-
	Goodwill		31,517			31,517			31,517
Tangible Common Equity		$	1,400,094		$	1,385,592		$	1,342,990

Total Assets			22,784,941			22,965,383			20,603,651
Less:	Goodwill		31,517			31,517			31,517
Tangible Assets		$	22,753,424		$	22,933,866		$	20,572,134

Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements ¹		$	12,236,805		$	12,093,010		$	11,295,077

Total Shareholders' Equity to Total Assets			7.07	%		6.95	%		6.67	%
Tangible Common Equity to Tangible Assets (Non-GAAP)			6.15	%		6.04	%		6.53	%

Tier 1 Capital Ratio¹			13.56	%		13.47	%		12.06	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) ¹			11.44	%		11.46	%		11.89	%

¹ Regulatory capital ratios as of December 31, 2021 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)		2021			2021			2020			2021			2020
Interest Income
Interest and Fees on Loans and Leases	$	97,853		$	100,570		$	98,471		$	398,616		$	417,498
Income on Investment Securities
Available-for-Sale		15,850			16,396			15,449			64,550			61,294
Held-to-Maturity		18,325			16,754			14,113			61,955			66,055
Deposits		1			2			1			10			14
Funds Sold		104			382			115			883			902
Other		176			159			167			702			661
Total Interest Income		132,309			134,263			128,316			526,716			546,424
Interest Expense
Deposits		2,898			3,837			4,861			15,216			32,966
Securities Sold Under Agreements to Repurchase		2,834			3,423			3,614			13,260			15,281
Funds Purchased		6			-			5			7			95
Short-Term Borrowings		-			-			-			-			62
Other Debt		183			184			337			943			1,698
Total Interest Expense		5,921			7,444			8,817			29,426			50,102
Net Interest Income		126,388			126,819			119,499			497,290			496,322
Provision for Credit Losses		(9,700	)		(10,400	)		15,200			(50,500	)		117,800
Net Interest Income After Provision for Credit Losses		136,088			137,219			104,299			547,790			378,522
Noninterest Income
Trust and Asset Management		11,693			11,415			11,239			46,068			43,456
Mortgage Banking		2,908			3,136			6,851			14,964			17,871
Service Charges on Deposit Accounts		6,861			6,510			6,335			25,564			24,910
Fees, Exchange, and Other Service Charges		14,439			13,604			12,143			55,457			47,056
Investment Securities Gains (Losses), Net		(1,258	)		(1,259	)		(1,193	)		(1,297	)		9,932
Annuity and Insurance		876			735			670			3,224			3,362
Bank-Owned Life Insurance		1,907			1,897			2,353			7,784			7,388
Other		5,148			5,340			6,860			19,589			30,434
Total Noninterest Income		42,574			41,378			45,258			171,353			184,409
Noninterest Expense
Salaries and Benefits		59,434			56,447			50,200			228,293			207,329
Net Occupancy		9,028			3,079			14,536			26,244			39,533
Net Equipment		9,105			8,924			9,574			35,703			35,448
Data Processing		4,696			4,722			4,604			20,297			18,499
Professional Fees		3,427			2,948			3,174			12,895			12,186
FDIC Insurance		1,619			1,594			1,484			6,536			5,780
Other		14,369			18,805			15,082			63,621			55,032
Total Noninterest Expense		101,678			96,519			98,654			393,589			373,807
Income Before Provision for Income Taxes		76,984			82,078			50,903			325,554			189,124
Provision for Income Taxes		13,147			20,025			8,589			72,182			35,320
Net Income	$	63,837		$	62,053		$	42,314		$	253,372		$	153,804
Preferred Stock Dividends		1,969			1,006			-			2,975			-
Net Income Available to Common Shareholders	$	61,868		$	61,047		$	42,314		$	250,397		$	153,804
Basic Earnings Per Common Share	$	1.56		$	1.53		$	1.06		$	6.29		$	3.87
Diluted Earnings Per Common Share	$	1.55		$	1.52		$	1.06		$	6.25		$	3.86
Dividends Declared Per Common Share	$	0.70		$	0.70		$	0.67		$	2.74		$	2.68
Basic Weighted Average Common Shares		39,741,063			39,881,437			39,773,851			39,837,798			39,726,210
Diluted Weighted Average Common Shares		39,955,525			40,080,919			39,963,736			40,053,664			39,892,107

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)			2021			2021			2020			2021			2020
Net Income		$	63,837		$	62,053		$	42,314		$	253,372		$	153,804
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities		(26,244	)		(7,541	)		(961	)		(83,958	)		43,428
	Defined Benefit Plans		8,430			441			(5,616	)		9,754			(4,494	)
Other Comprehensive Income (Loss)			(17,814	)		(7,100	)		(6,577	)		(74,204	)		38,934
Comprehensive Income		$	46,023		$	54,953		$	35,737		$	179,168		$	192,738

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition							Table 5
	December 31,			September 30,			December 31,
(dollars in thousands)		2021			2021			2020
Assets
Interest-Bearing Deposits in Other Banks	$	2,571		$	2,188		$	1,646
Funds Sold		361,536			422,063			333,022
Investment Securities
Available-for-Sale		4,276,056			4,353,520			3,791,689
Held-to-Maturity (Fair Value of $4,646,619; $4,895,763; $3,348,693)		4,694,780			4,899,880			3,262,727
Loans Held for Sale		26,746			21,965			82,565
Loans and Leases		12,259,076			12,072,750			11,940,020
Allowance for Credit Losses		(157,821	)		(167,920	)		(216,252	)
Net Loans and Leases		12,101,255			11,904,830			11,723,768
Total Earning Assets		21,462,944			21,604,446			19,195,417
Cash and Due from Banks		196,327			231,711			279,420
Premises and Equipment, Net		199,393			199,144			199,695
Operating Lease Right-of-Use Assets		95,621			97,007			99,542
Accrued Interest Receivable		45,242			46,751			49,303
Foreclosed Real Estate		2,332			2,332			2,332
Mortgage Servicing Rights		22,251			22,099			19,652
Goodwill		31,517			31,517			31,517
Bank-Owned Life Insurance		344,587			293,230			291,480
Other Assets		384,727			437,146			435,293
Total Assets	$	22,784,941		$	22,965,383		$	20,603,651

Liabilities
Deposits
Noninterest-Bearing Demand		7,275,287			7,111,693			5,749,612
Interest-Bearing Demand		4,628,567			4,768,725			4,040,733
Savings		7,456,165			7,540,345			6,759,213
Time		1,000,089			1,072,915			1,662,063
Total Deposits		20,360,108			20,493,678			18,211,621
Securities Sold Under Agreements to Repurchase		450,490			450,490			600,590
Other Debt		10,391			10,414			60,481
Operating Lease Liabilities		103,210			104,452			107,412
Retirement Benefits Payable		38,494			49,802			51,197
Accrued Interest Payable		2,499			3,415			5,117
Taxes Payable		11,901			9,815			2,463
Other Liabilities		196,237			246,208			190,263
Total Liabilities		21,173,330			21,368,274			19,229,144
Shareholders' Equity
Preferred Stock ($.01 par value; authorized 180,000 shares;
issued / outstanding: December 31, 2021 and September 30, 2021 - 180,000)		180,000			180,000			-
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2021 - 58,554,669 / 40,253,193;
September 30, 2021 - 58,559,089 / 40,305,801; and December 31, 2020 - 58,285,624 / 40,119,312)		581			580			580
Capital Surplus		602,508			598,341			591,360
Accumulated Other Comprehensive Income (Loss)		(66,382	)		(48,568	)		7,822
Retained Earnings		1,950,375			1,916,861			1,811,979
Treasury Stock, at Cost (Shares: December 31, 2021 - 18,301,476; September 30, 2021 - 18,253,288;
and December 31, 2020 - 18,166,312)		(1,055,471	)		(1,050,105	)		(1,037,234	)
Total Shareholders' Equity		1,611,611			1,597,109			1,374,507
Total Liabilities and Shareholders' Equity	$	22,784,941		$	22,965,383		$	20,603,651

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																				Table 6
											Accum.
											Other
											Compre-
	Preferred			Common							hensive
	Shares	Preferred		Shares		Common		Capital			Income			Retained			Treasury
(dollars in thousands)	Outstanding	Stock		Outstanding		Stock		Surplus			(Loss)			Earnings			Stock			Total
Balance as of December 31, 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	-		-	283,482			1		1,217			-			562			7,388			9,168
Common Stock Repurchased	-		-	(203,865	)		-		-			-			-			(18,006	)		(18,006	)
Cash Dividends Declared Common Stock
($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

Net Income	-		-	-			-		-			-			253,372			-			253,372
Other Comprehensive Loss	-		-	-			-		-			(74,204	)		-			-			(74,204	)
Share-Based Compensation	-		-	-			-		13,267			-			-			-			13,267
Preferred Stock Issued, Net	180,000		180,000	-			-		(4,513	)		-			-			-			175,487
Common Stock Issued under Purchase
and Equity Compensation Plans	-		-	507,121			1		2,394			-			(1,368	)		13,021			14,048
Common Stock Repurchased	-		-	(373,240	)		-		-			-			-			(31,258	)		(31,258	)
Cash Dividends Declared Common Stock
($2.74 per share)	-		-	-			-		-			-			(110,633	)		-			(110,633	)
Cash Dividends Declared Preferred Stock	-		-	-			-		-			-			(2,975	)		-			(2,975	)
Balance as of December 31, 2021	180,000	$	180,000	40,253,193		$	581	$	602,508		$	(66,382	)	$	1,950,375		$	(1,055,471	)	$	1,611,611

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis ¹													Table 7a
		Three Months Ended				Three Months Ended				Three Months Ended
		December 31, 2021				September 30, 2021				December 31, 2020
		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	$ -	0.05	%	$ 3.2	$ -	0.23	%	$ 2.2	$ -	0.16	%
Funds Sold		273.2	0.1	0.15		999.5	0.4	0.15		451.6	0.1	0.10
Investment Securities
	Available-for-Sale
	Taxable	4,308.6	15.8	1.47		4,454.9	16.3	1.46		3,605.8	15.3	1.69
	Non-Taxable	5.8	0.1	3.67		10.1	0.1	4.34		20.2	0.2	4.33
	Held-to-Maturity
	Taxable	4,757.4	18.1	1.52		4,294.6	16.5	1.53		3,246.7	13.9	1.71
	Non-Taxable	58.0	0.3	2.31		64.8	0.4	2.37		47.1	0.3	2.66
Total Investment Securities		9,129.8	34.3	1.50		8,824.4	33.3	1.51		6,919.8	29.7	1.71
Loans Held for Sale		20.8	0.1	2.85		24.6	0.2	2.80		15.1	0.1	2.98
Loans and Leases ²
	Commercial and Industrial	1,478.0	14.6	3.92		1,644.8	17.0	4.09		1,897.4	14.0	2.95
	Commercial Mortgage	3,075.1	22.2	2.86		2,952.7	21.9	2.94		2,768.0	21.7	3.12
	Construction	246.8	2.2	3.50		289.9	2.5	3.38		257.4	2.3	3.62
	Commercial Lease Financing	107.4	0.3	1.12		109.3	0.4	1.58		112.2	(2.5)	(9.07)
	Residential Mortgage	4,293.6	33.9	3.16		4,253.2	34.8	3.27		4,089.7	36.4	3.57
	Home Equity	1,757.8	12.8	2.88		1,621.4	12.2	2.97		1,600.9	13.2	3.28
	Automobile	730.2	6.1	3.34		718.7	6.2	3.41		706.1	6.4	3.59
	Other ³	397.8	5.8	5.79		368.3	5.7	6.16		404.2	7.0	6.85
Total Loans and Leases		12,086.7	97.9	3.22		11,958.3	100.7	3.35		11,835.9	98.5	3.32
Other		34.4	0.2	2.05		31.5	0.2	2.02		33.3	0.2	2.01
Total Earning Assets ⁴		21,547.1	132.6	2.45		21,841.5	134.8	2.45		19,257.9	128.6	2.66
Cash and Due from Banks		231.3				252.2				240.4
Other Assets		887.9				899.3				884.3
Total Assets		$ 22,666.3				$ 22,993.0				$ 20,382.6

Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	4,685.7	0.7	0.06		4,707.1	0.7	0.06		3,899.5	0.6	0.06
	Savings	7,443.2	1.2	0.06		7,687.0	1.8	0.09		6,728.8	1.4	0.08
	Time	1,019.2	1.0	0.40		1,267.0	1.4	0.44		1,696.0	2.9	0.68
Total Interest-Bearing Deposits		13,148.1	2.9	0.09		13,661.1	3.9	0.11		12,324.3	4.9	0.16
Short-Term Borrowings		18.5	-	0.13		-	-	-		19.2	-	0.10
Securities Sold Under Agreements to Repurchase		450.5	2.8	2.46		547.8	3.4	2.45		600.9	3.6	2.35
Other Debt		10.4	0.2	7.05		10.4	0.2	7.04		60.5	0.3	2.22
Total Interest-Bearing Liabilities		13,627.5	5.9	0.17		14,219.3	7.5	0.21		13,004.9	8.8	0.27
Net Interest Income			$ 126.7				$ 127.3				$ 119.8
	Interest Rate Spread			2.28	%			2.24	%			2.39	%
	Net Interest Margin			2.34	%			2.32	%			2.48	%
Noninterest-Bearing Demand Deposits		7,074.4				6,812.7				5,494.8
Other Liabilities		373.8				362.9				509.9
Shareholders' Equity		1,590.6				1,598.1				1,373.0
Total Liabilities and Shareholders' Equity		$ 22,666.3				$ 22,993.0				$ 20,382.6


¹ Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
²Non-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.
³ Comprised of other consumer revolving credit, installment, and consumer lease financing.
⁴ Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $280,000, $315,000, and $287,000
for the three months ended December 31, 2021, September 30, 2021, and December 30, 2020, respectively.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis ¹															Table 7b
		Year Ended						Year Ended
		December 31, 2021						December 31, 2020
		Average		Income/		Yield/		Average		Income/			Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	2.7	$	-	0.36	%	$	2.2	$	-		0.61		%
Funds Sold			692.4		0.9	0.13			434.1		0.9		0.21
Investment Securities
	Available-for-Sale
	Taxable		4,266.9		64.2	1.50			2,961.9		60.3		2.04
	Non-Taxable		10.1		0.4	4.21			27.6		1.2		4.36
	Held-to-Maturity
	Taxable		3,988.1		61.0	1.53			3,125.2		65.0		2.08
	Non-Taxable		50.7		1.2	2.41			52.6		1.4		2.66
Total Investment Securities			8,315.8		126.8	1.53			6,167.3		127.9		2.07
Loans Held for Sale			24.3		0.7	2.82			19.4		0.6		3.28
Loans and Leases ²
	Commercial and Industrial		1,739.0		62.8	3.61			1,797.5		59.3		3.30
	Commercial Mortgage		2,940.0		86.7	2.95			2,666.1		90.9		3.41
	Construction		271.6		9.5	3.50			240.1		9.4		3.92
	Commercial Lease Financing		107.2		1.5	1.42			111.3		(1.0	)	(0.88	)
	Residential Mortgage		4,232.4		140.1	3.31			3,978.7		146.0		3.67
	Home Equity		1,637.1		49.6	3.03			1,642.7		56.8		3.46
	Automobile		717.0		24.6	3.43			709.1		25.3		3.57
	Other ³		379.4		23.9	6.30			446.6		30.9		6.91
Total Loans and Leases			12,023.7		398.7	3.32			11,592.1		417.6		3.60
Other			32.9		0.7	2.13			33.7		0.7		1.96
Total Earning Assets ⁴			21,091.8		527.8	2.50			18,248.8		547.7		3.00
Cash and Due from Banks			252.5						263.8
Other Assets			882.9						875.1
Total Assets		$	22,227.2					$	19,387.7

Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand		4,509.8		2.7	0.06			3,426.8		2.5		0.07
	Savings		7,421.9		6.2	0.08			6,702.7		12.4		0.19
	Time		1,331.8		6.3	0.47			1,708.1		18.1		1.06
Total Interest-Bearing Deposits			13,263.5		15.2	0.11			11,837.6		33.0		0.28
Short-Term Borrowings			5.2		-	0.13			33.5		0.2		0.47
Securities Sold Under Agreements to Repurchase			541.9		13.3	2.45			602.7		15.2		2.54
Other Debt			27.7		0.9	3.41			62.1		1.7		2.73
Total Interest-Bearing Liabilities			13,838.3		29.4	0.21			12,535.9		50.1		0.40
Net Interest Income				$	498.4					$	497.6
	Interest Rate Spread					2.29	%						2.60		%
	Net Interest Margin					2.36	%						2.73		%
Noninterest-Bearing Demand Deposits			6,507.6						5,062.6
Other Liabilities			385.7						437.6
Shareholders' Equity			1,495.6						1,351.6
Total Liabilities and Shareholders' Equity		$	22,227.2					$	19,387.7


¹ Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
²Non-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.
³ Comprised of other consumer revolving credit, installment, and consumer lease financing.
⁴ Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1,116,000 and $1,297,000
for the year ended December 31, 2021 and December 31, 2020, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended December 31, 2021
	Compared to September 30, 2021
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(0.3	)	$	-		$	(0.3	)
Investment Securities
Available-for-Sale
Taxable		(0.5	)		-			(0.5	)
Held-to-Maturity
Taxable		1.7			(0.1	)		1.6
Non-Taxable		(0.1	)		-			(0.1	)
Total Investment Securities		1.1			(0.1	)		1.0
Loans Held for Sale		(0.1	)		-			(0.1	)
Loans and Leases
Commercial and Industrial		(5.1	)		2.7			(2.4	)
Commercial Mortgage		0.9			(0.6	)		0.3
Construction		(0.4	)		0.1			(0.3	)
Commercial Lease Financing		-			(0.1	)		(0.1	)
Residential Mortgage		0.3			(1.2	)		(0.9	)
Home Equity		1.0			(0.4	)		0.6
Automobile		0.1			(0.2	)		(0.1	)
Other ²		0.5			(0.4	)		0.1
Total Loans and Leases		(2.7	)		(0.1	)		(2.8	)
Total Change in Interest Income		(2.0	)		(0.2	)		(2.2	)

Change in Interest Expense:
Interest-Bearing Deposits
Savings		(0.1	)		(0.5	)		(0.6	)
Time		(0.3	)		(0.1	)		(0.4	)
Total Interest-Bearing Deposits		(0.4	)		(0.6	)		(1.0	)
Securities Sold Under Agreements to Repurchase		(0.6	)		-			(0.6	)
Total Change in Interest Expense		(1.0	)		(0.6	)		(1.6	)

Change in Net Interest Income	$	(1.0	)	$	0.4		$	(0.6	)


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, 2021
	Compared to December 31, 2020
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(0.1	)	$	0.1		$	-
Investment Securities
Available-for-Sale
Taxable		2.7			(2.2	)		0.5
Non-Taxable		(0.1	)		-			(0.1	)
Held-to-Maturity
Taxable		5.9			(1.7	)		4.2
Non-Taxable		0.1			(0.1	)		-
Total Investment Securities		8.6			(4.0	)		4.6
Loans and Leases
Commercial and Industrial		(4.3	)		4.9			0.6
Commercial Mortgage		2.3			(1.8	)		0.5
Construction		(0.1	)		-			(0.1	)
Commercial Lease Financing		0.1			2.7			2.8
Residential Mortgage		1.8			(4.3	)		(2.5	)
Home Equity		1.2			(1.6	)		(0.4	)
Automobile		0.1			(0.4	)		(0.3	)
Other ²		(0.1	)		(1.1	)		(1.2	)
Total Loans and Leases		1.0			(1.6	)		(0.6	)
Total Change in Interest Income		9.5			(5.5	)		4.0

Change in Interest Expense:
Interest-Bearing Deposits
Demand		0.1			-			0.1
Savings		0.1			(0.3	)		(0.2	)
Time		(1.0	)		(0.9	)		(1.9	)
Total Interest-Bearing Deposits		(0.8	)		(1.2	)		(2.0	)
Securities Sold Under Agreements to Repurchase		(0.9	)		0.1			(0.8	)
Other Debt		(0.4	)		0.3			(0.1	)
Total Change in Interest Expense		(2.1	)		(0.8	)		(2.9	)

Change in Net Interest Income	$	11.6		$	(4.7	)	$	6.9


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

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis			Table 8c
	Year Ended December 31, 2021
	Compared to December 31, 2020
(dollars in millions)	Volume ¹	Rate ¹	Total
Change in Interest Income:
Funds Sold	$ 0.4	$ (0.4)	$ -
Investment Securities
Available-for-Sale
Taxable	22.2	(18.3)	3.9
Non-Taxable	(0.7)	(0.1)	(0.8)
Held-to-Maturity
Taxable	15.5	(19.5)	(4.0)
Non-Taxable	(0.1)	(0.1)	(0.2)
Total Investment Securities	36.9	(38.0)	(1.1)
Loans Held for Sale	0.2	(0.1)	0.1
Loans and Leases
Commercial and Industrial	1.6	1.9	3.5
Commercial Mortgage	8.8	(13.0)	(4.2)
Construction	1.2	(1.1)	0.1
Commercial Lease Financing	-	2.5	2.5
Residential Mortgage	8.9	(14.8)	(5.9)
Home Equity	(0.2)	(7.0)	(7.2)
Automobile	0.3	(1.0)	(0.7)
Other ²	(4.4)	(2.6)	(7.0)
Total Loans and Leases	16.2	(35.1)	(18.9)
Total Change in Interest Income	53.7	(73.6)	(19.9)

Change in Interest Expense:
Interest-Bearing Deposits
Demand	0.7	(0.5)	0.2
Savings	1.2	(7.4)	(6.2)
Time	(3.4)	(8.4)	(11.8)
Total Interest-Bearing Deposits	(1.5)	(16.3)	(17.8)
Short-Term Borrowings	(0.1)	(0.1)	(0.2)
Securities Sold Under Agreements to Repurchase	(1.5)	(0.4)	(1.9)
Other Debt	(1.1)	0.3	(0.8)
Total Change in Interest Expense	(4.2)	(16.5)	(20.7)

Change in Net Interest Income	$ 57.9	$ (57.1)	$ 0.8


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

Bank of 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)		2021		2021		2020			2021		2020
Salaries	$	35,758	$	34,676	$	33,907		$	135,416	$	134,178
Incentive Compensation		6,699		4,677		3,084			22,462		9,153
Share-Based Compensation		3,396		3,335		2,029			12,489		6,783
Commission Expense		2,094		1,772		2,164			8,901		6,985
Retirement and Other Benefits		4,661		4,746		5,212			20,213		18,528
Payroll Taxes		2,585		2,825		2,292			12,404		12,241
Medical, Dental, and Life Insurance		3,981		3,222		1,523			12,831		12,917
Separation Expense		260		1,194		(11	)		3,577		6,544
Total Salaries and Benefits	$	59,434	$	56,447	$	50,200		$	228,293	$	207,329

Bank of Hawaii Corporation and Subsidiaries
Loans and Leases										Table 10
		December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)			2021		2021		2021		2021		2020
Commercial
	Commercial and Industrial	$	1,361,921	$	1,325,446	$	1,257,305	$	1,288,496	$	1,357,610
	PPP ¹		126,779		268,480		513,513		725,485		517,683
	Commercial Mortgage		3,152,130		2,994,520		2,944,435		2,859,246		2,854,829
	Construction		220,254		296,052		277,393		281,164		259,798
	Lease Financing		105,108		107,526		110,500		104,980		110,766
Total Commercial			4,966,192		4,992,024		5,103,146		5,259,371		5,100,686
Consumer
	Residential Mortgage		4,309,602		4,272,540		4,264,180		4,216,976		4,130,513
	Home Equity		1,836,588		1,680,229		1,594,781		1,577,500		1,604,538
	Automobile		736,565		727,234		714,729		710,407		708,800
	Other ²		410,129		400,723		364,542		376,449		395,483
Total Consumer			7,292,884		7,080,726		6,938,232		6,881,332		6,839,334
Total Loans and Leases		$	12,259,076	$	12,072,750	$	12,041,378	$	12,140,703	$	11,940,020


Deposits
		December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)			2021		2021		2021		2021		2020
Consumer		$	10,438,844	$	10,150,199	$	9,848,285	$	9,746,713	$	9,347,725
Commercial			8,641,932		8,767,733		8,675,909		8,241,102		7,302,832
Public and Other			1,279,332		1,575,746		1,645,515		1,568,836		1,561,064
Total Deposits		$	20,360,108	$	20,493,678	$	20,169,709	$	19,556,651	$	18,211,621

¹ The PPP amounts presented, which are reported net of deferred costs and fees, were previously included as a component of the Commercial and Industrial loan class.
² 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)				2021			2021			2021			2021			2020
Non-Performing Assets
Non-Accrual Loans and Leases
	Commercial
		Commercial and Industrial	$	243		$	209		$	258		$	293		$	441
		Commercial Mortgage		8,205			8,309			8,413			8,503			8,527
	Total Commercial			8,448			8,518			8,671			8,796			8,968
	Consumer
		Residential Mortgage		3,305			4,348			2,437			1,804			3,223
		Home Equity		4,881			5,422			5,534			4,951			3,958
	Total Consumer			8,186			9,770			7,971			6,755			7,181
Total Non-Accrual Loans and Leases				16,634			18,288			16,642			15,551			16,149
Foreclosed Real Estate				2,332			2,332			2,332			2,332			2,332
Total Non-Performing Assets			$	18,966		$	20,620		$	18,974		$	17,883		$	18,481

Accruing Loans and Leases Past Due 90 Days or More
Commercial
	Commercial and Industrial			-			-			-			9			-
Total Commercial				-			-			-			9			-
Consumer
	Residential Mortgage			3,159			4,776			4,069			4,069			5,274
	Home Equity			3,456			2,946			4,498			4,906			3,187
	Automobile			729			395			277			604			925
	Other ¹			426			593			434			828			1,160
Total Consumer				7,770			8,710			9,278			10,407			10,546
Total Accruing Loans and Leases Past Due 90 Days or More			$	7,770		$	8,710		$	9,278		$	10,416		$	10,546
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More			$	60,519		$	62,787		$	74,926		$	74,216		$	68,065
Total Loans and Leases			$	12,259,076		$	12,072,750		$	12,041,378		$	12,140,703		$	11,940,020

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases				0.14	%		0.15	%		0.14	%		0.13	%		0.14	%

Ratio of Non-Performing Assets to Total Loans and Leases
	and Foreclosed Real Estate			0.15	%		0.17	%		0.16	%		0.15	%		0.15	%

Ratio of Commercial Non-Performing Assets to Total Commercial Loans
	and Leases and Commercial Foreclosed Real Estate			0.17	%		0.17	%		0.17	%		0.17	%		0.18	%

Ratio of Consumer Non-Performing Assets to Total Consumer Loans
	and Leases and Consumer Foreclosed Real Estate			0.14	%		0.17	%		0.15	%		0.13	%		0.14	%

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			0.22	%		0.24	%		0.23	%		0.23	%		0.24	%

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter			$	20,620		$	18,974		$	17,883		$	18,481		$	18,626
Additions				357			3,171			2,229			2,992			434
Reductions
	Payments			(972	)		(889	)		(722	)		(2,481	)		(490	)
	Return to Accrual Status			(1,038	)		(606	)		(416	)		(1,014	)		-
	Charge-offs/Write-downs			(1	)		(30	)		-			(95	)		(89	)
Total Reductions				(2,011	)		(1,525	)		(1,138	)		(3,590	)		(579	)
Balance at End of Quarter			$	18,966		$	20,620		$	18,974		$	17,883		$	18,481

¹Comprised 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)				2021			2021			2020			2021			2020
Balance at Beginning of Period			$	174,708		$	186,371		$	205,813		$	221,303		$	116,849

CECL Adoption (Day 1) Impact				-			-			-			-			(5,072	)

Loans and Leases Charged-Off
	Commercial
		Commercial and Industrial		(217	)		(196	)		(177	)		(1,117	)		(1,697	)
	Consumer
		Residential Mortgage		-			(197	)		(120	)		(316	)		(204	)
		Home Equity		(5	)		(289	)		(81	)		(417	)		(397	)
		Automobile		(1,045	)		(576	)		(393	)		(4,939	)		(6,496	)
		Other ¹		(2,007	)		(2,187	)		(2,460	)		(10,530	)		(12,244	)
Total Loans and Leases Charged-Off				(3,274	)		(3,445	)		(3,231	)		(17,319	)		(21,038	)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
		Commercial and Industrial		132			118			244			506			2,288
		Commercial Mortgage		-			-			-			-			40
	Consumer
		Residential Mortgage		858			173			497			2,467			1,292
		Home Equity		390			216			868			1,666			2,892
		Automobile		476			943			910			3,510			3,775
		Other ¹		746			802			968			3,205			3,613
Total Recoveries on Loans and Leases Previously Charged-Off				2,602			2,252			3,487			11,354			13,900
Net Recovered (Charged-Off) - Loans and Leases				(672	)		(1,193	)		256			(5,965	)		(7,138	)
Net Charged-Off - Accrued Interest Receivable				(39	)		(70	)		-			(541	)		-
Provision for Credit Losses:
Loans and Leases				(9,427	)		(11,272	)		15,200			(52,466	)		117,800
Accrued Interest Receivable				(214	)		(703	)		-			(1,745	)		-
Unfunded Commitments				(59	)		1,575			34			3,711			(1,136	)
Balance at End of Period ²			$	164,297		$	174,708		$	221,303		$	164,297		$	221,303

Components
Allowance for Credit Losses - Loans and Leases				157,821			167,920			216,252			157,821			216,252
Allowance for Credit Losses - Accrued Interest Receivable				414			667			2,700			414			2,700
Reserve for Unfunded Commitments				6,062			6,121			2,351			6,062			2,351
Total Reserve for Credit Losses			$	164,297		$	174,708		$	221,303		$	164,297		$	221,303

Average Loans and Leases Outstanding			$	12,086,705		$	11,958,321		$	11,835,929		$	12,023,669		$	11,592,093

Ratio of Net Loans and Leases Charged-Off (Recovered) to
	Average Loans and Leases Outstanding (annualized)			0.02	%		0.04	%		(0.01	%)		0.05	%		0.06	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding ³				1.29	%		1.39	%		1.81	%		1.29	%		1.81	%

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 The numerator comprises the Allowance for Credit Losses – Loans and Leases.

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, 2021
Net Interest Income	$	71,007		$	48,140		$	7,241		$	126,388
Provision for Credit Losses		676			(4	)		(10,372	)		(9,700	)
Net Interest Income After Provision for Credit Losses		70,331			48,144			17,613			136,088
Noninterest Income		32,948			8,298			1,328			42,574
Noninterest Expense		(81,273	)		(17,127	)		(3,278	)		(101,678	)
Income Before Income Taxes		22,006			39,315			15,663			76,984
Provision for Income Taxes		(5,602	)		(9,436	)		1,891			(13,147	)
Net Income	$	16,404		$	29,879		$	17,554		$	63,837
Total Assets as of December 31, 2021	$	7,675,823		$	5,107,001		$	10,002,117		$	22,784,941

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

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, 2021
Net Interest Income	$	283,998		$	194,409		$	18,883		$	497,290
Provision for Credit Losses		5,764			201			(56,465	)		(50,500	)
Net Interest Income After Provision for Credit Losses		278,234			194,208			75,348			547,790
Noninterest Income		131,292			30,637			9,424			171,353
Noninterest Expense		(303,699	)		(64,470	)		(25,420	)		(393,589	)
Income Before Income Taxes		105,827			160,375			59,352			325,554
Provision for Income Taxes		(26,442	)		(39,070	)		(6,670	)		(72,182	)
Net Income	$	79,385		$	121,305		$	52,682		$	253,372
Total Assets as of December 31, 2021	$	7,675,823		$	5,107,001		$	10,002,117		$	22,784,941

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

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)		2021				2021				2021				2021				2020
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	97,853			$	100,570			$	100,894			$	99,299			$	98,471
Income on Investment Securities
Available-for-Sale		15,850				16,396				16,467				15,837				15,449
Held-to-Maturity		18,325				16,754				13,576				13,300				14,113
Deposits		1				2				-				7				1
Funds Sold		104				382				260				137				115
Other		176				159				182				185				167
Total Interest Income		132,309				134,263				131,379				128,765				128,316
Interest Expense
Deposits		2,898				3,837				4,152				4,329				4,861
Securities Sold Under Agreements to Repurchase		2,834				3,423				3,470				3,533				3,614
Funds Purchased		6				-				-				1				5
Other Debt		183				184				243				333				337
Total Interest Expense		5,921				7,444				7,865				8,196				8,817
Net Interest Income		126,388				126,819				123,514				120,569				119,499
Provision for Credit Losses		(9,700	)			(10,400	)			(16,100	)			(14,300	)			15,200
Net Interest Income After Provision for Credit Losses		136,088				137,219				139,614				134,869				104,299
Noninterest Income
Trust and Asset Management		11,693				11,415				11,682				11,278				11,239
Mortgage Banking		2,908				3,136				3,058				5,862				6,851
Service Charges on Deposit Accounts		6,861				6,510				6,065				6,128				6,335
Fees, Exchange, and Other Service Charges		14,439				13,604				13,807				13,607				12,143
Investment Securities Gains (Losses), Net		(1,258	)			(1,259	)			2,423				(1,203	)			(1,193	)
Annuity and Insurance		876				735				911				702				670
Bank-Owned Life Insurance		1,907				1,897				2,063				1,917				2,353
Other		5,148				5,340				4,422				4,679				6,860
Total Noninterest Income		42,574				41,378				44,431				42,970				45,258
Noninterest Expense
Salaries and Benefits		59,434				56,447				56,161				56,251				50,200
Net Occupancy		9,028				3,079				5,047				9,090				14,536
Net Equipment		9,105				8,924				8,796				8,878				9,574
Data Processing		4,696				4,722				4,557				6,322				4,604
Professional Fees		3,427				2,948				3,114				3,406				3,174
FDIC Insurance		1,619				1,594				1,669				1,654				1,484
Other		14,369				18,805				17,183				13,264				15,082
Total Noninterest Expense		101,678				96,519				96,527				98,865				98,654
Income Before Provision for Income Taxes		76,984				82,078				87,518				78,974				50,903
Provision for Income Taxes		13,147				20,025				19,985				19,025				8,589
Net Income	$	63,837			$	62,053			$	67,533			$	59,949			$	42,314
Preferred Stock Dividends		1,969				1,006				-				-				-
Net Income Available to Common Shareholders	$	61,868			$	61,047			$	67,533			$	59,949			$	42,314

Basic Earnings Per Common Share	$	1.56			$	1.53			$	1.69			$	1.51			$	1.06
Diluted Earnings Per Common Share	$	1.55			$	1.52			$	1.68			$	1.50			$	1.06

Balance Sheet Totals
Loans and Leases	$	12,259,076			$	12,072,750			$	12,041,378			$	12,140,703			$	11,940,020
Total Assets		22,784,941				22,965,383				22,672,183				21,947,271				20,603,651
Total Deposits		20,360,108				20,493,678				20,169,709				19,556,651				18,211,621
Total Shareholders' Equity		1,611,611				1,597,109				1,583,531				1,360,221				1,374,507

Performance Ratios
Return on Average Assets		1.12		%		1.07		%		1.23		%		1.15		%		0.83
Return on Average Shareholders' Equity		15.92				15.41				19.17				17.65				12.26
Return on Average Common Equity		17.40				17.08				19.61				17.65				12.26
Efficiency Ratio ¹		60.18				57.38				57.47				60.45				59.88
Net Interest Margin ²		2.34				2.32				2.37				2.43				2.48


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, 2021				December 31, 2020						December 31, 2019
Hawaii Economic Trends
State General Fund Revenues¹	$	7,441.8	26.8	%	$	6,415.1		(12.3	)	%	$	7,316.5			5.5		%
General Excise and Use Tax Revenue¹		3,293.9	17.8			3,038.8		(15.6	)			3,602.2			5.1
Jobs ²		608.0				588.2						659.7

								November 30,			December 31,
								2021				2020			2019
Unemployment, seasonally adjusted³
Statewide								6.0		%		10.3		%	2.1		%

Honolulu County								4.9				9.3			2.0
Hawaii County								5.1				10.1			2.5
Maui County								6.8				14.3			2.0
Kauai County								7.0				13.9			2.1

					December 31,
(percentage change, except months of inventory)						2021		2020				2019			2018
Housing Trends (Single Family Home - Oahu) ⁴
Median Home Price						19.3	%	5.2		%		(0.1	)	%	4.6		%
Home Sales Volume (units)						17.9	%	2.3		%		3.9		%	(7.7	)	%
Months of Inventory						0.8		1.4				2.5			2.8

					Monthly Visitor Arrivals,						Percentage Change
(in thousands)					Not Seasonally Adjusted						from Previous Year
Tourism ⁵
November 30, 2021								613.4							233.8		%
October 31, 2021								550.8							618.2
September 30, 2021								505.9							2,647.9
August 31, 2021								722.4							2,993.0
July 31, 2021								879.6							3,798.4
June 30, 2021								791.1							4,534.7
May 31, 2021								629.7							6,807.4
April 30, 2021								484.1							10,506.3
March 31, 2021								439.8							1.1
February 28, 2021								235.3							(71.6	)
January 31, 2021								172.0							(80.1	)
December 31, 2020								235.8							(75.2	)
November 30, 2020								183.8							(77.3	)
October 31, 2020								76.7							(90.4	)
September 30, 2020								18.4							(97.5	)
August 31, 2020								23.4							(97.5	)
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


¹Source: Hawaii Department of Business, Economic Development & Tourism
²Source: U.S. Bureau of Labor Statistics
³Source: University of Hawaii Economic Research Organization (UHERO)
⁴Source: Honolulu Board of Realtors
⁵Source: Hawaii Tourism Authority

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Bank of Hawaii Corporation Fourth Quarter 2021 Financial Results

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