Bank of Hawai‘i Corporation Fourth Quarter 2022 Financial Results

By: Bank of Hawai‘i Corporation via Business Wire

January 23, 2023 at 06:45 AM EST

2022 Diluted Earnings Per Common Share $5.48
2022 Net Income $225.8 Million
Diluted Earnings Per Common Share $1.50 for the Fourth Quarter of 2022
Net Income $61.3 Million for the Fourth Quarter of 2022
Board of Directors Declares Dividend of $0.70 Per Common Share

Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $5.48 for the full year of 2022, compared with diluted earnings per common share of $6.25 for the full year of 2021. Net income for the year was $225.8 million, down 10.9% from the previous year. Return on average assets for the full year of 2022 was 0.98%, compared to 1.14% in 2021. Return on average common equity for the full year of 2022 was 17.83% compared to 17.92% in 2021.

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Diluted earnings per common share for the fourth quarter of 2022 was $1.50, compared with diluted earnings per common share of $1.28 in the previous quarter and $1.55 in the same quarter last year. Net income for the fourth quarter of 2022 was $61.3 million, up 16.1% from the third quarter of 2022 and down 4.0% from the fourth quarter of 2021. The increase from the third quarter of 2022 was primarily due to a one-time charge in the third quarter related to our agreement to sell assets that terminated certain leveraged leases.

“Bank of Hawai‘i ended 2022 with strong financial performance,” said Peter Ho, Chairman, President, and CEO. “As we look forward into 2023, we are well positioned for a challenging environment, thanks to our leading market position, superior credit quality, disciplined expense management, and strong liquidity and capital.”

Financial Highlights

The return on average assets for the fourth quarter of 2022 was 1.05% compared with 0.91% in the previous quarter and 1.12% in the same quarter of 2021.
The return on average common equity for the fourth quarter of 2022 was 21.28% compared with 16.98% in the previous quarter and 17.40% in the same quarter of 2021.
Net interest income for the fourth quarter of 2022 was $140.7 million, a decrease of 0.6% from the third quarter of 2022 and an increase of 11.4% from the fourth quarter of 2021. Net interest margin was 2.60% in the fourth quarter of 2022, unchanged from the previous quarter and an increase of 26 basis points from the same quarter of 2021.
- The increase in net interest income and margin in the fourth quarter of 2022 compared to the prior year was due to the higher rate environment and strong loan growth over the year.
There was a $0.2 million provision for credit losses for the fourth quarter of 2022 compared with no provision in the previous quarter and a net benefit of $9.7 million in the same quarter of 2021.
Noninterest income was $41.2 million in the fourth quarter of 2022, an increase of 34.3% from the previous quarter and a decrease of 3.3% from the same quarter of 2021.
- Noninterest income in the third quarter of 2022 included a one-time pre-tax charge of $6.9 million related to our agreement to sell assets that terminated leveraged leases related to 31 locomotives. In addition, noninterest income in the third quarter also included a negative adjustment of $0.9 million related to a change in the Visa Class B conversion ratio.
Noninterest expense was $102.7 million in the fourth quarter of 2022, a decrease of 2.9% from the previous quarter and an increase of 1.0% from the same quarter of 2021.
- Noninterest expense in the third quarter of 2022 included $1.8 million in separation expenses.
The effective tax rate for the fourth quarter of 2022 was 22.4% compared with 20.7% in the previous quarter and 17.1% during the same quarter of 2021.
- The lower effective tax rate in the prior quarter was primarily due to tax benefits related to the aforementioned agreement to sell assets that terminated certain leveraged leases.
- The lower effective tax rate in the fourth quarter of 2021 included 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.

Asset Quality

The Company’s overall asset quality remained strong during the fourth quarter of 2022.

Total non-performing assets were $12.6 million at December 31, 2022, down $1.2 million from September 30, 2022 and down $6.3 million from December 31, 2021. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.09% at the end of the quarter, a decrease of 1 basis point from the end of the prior quarter and a decrease of 6 basis points from the same quarter of 2021.
Net loan and lease charge-offs during the fourth quarter of 2022 were $1.9 million or 0.05% annualized of total average loans and leases outstanding.
- Net loan and lease charge-offs for the fourth quarter of 2022 were comprised of charge-offs of $3.2 million partially offset by recoveries of $1.4 million.
- Compared to the prior quarter, net loan and lease charge-offs increased by $0.7 million or 2 basis points annualized on total average loans and leases outstanding.
- Compared to the same quarter of 2021, net loan and lease charge-offs increased by $1.2 million or 3 basis points annualized on total average loans and leases outstanding.
The allowance for credit losses on loans and leases was $144.4 million at December 31, 2022, a decrease of $2.0 million from September 30, 2022 and a decrease of $13.4 million from December 31, 2021. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.06% at the end of the quarter, down 4 basis points from the end of the prior quarter and down 23 basis points from the end of the same quarter of 2021.

Balance Sheet

Total assets were $23.6 billion at December 31, 2022, an increase of 2.0% from September 30, 2022 and an increase of 3.6% from December 31, 2021.
The investment securities portfolio was $8.3 billion at December 31, 2022, an increase of 4.7% from September 30, 2022 and a decrease of 7.9% from December 31, 2021.
- The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.
Total loans and leases were $13.6 billion at December 31, 2022, an increase of 2.4% from September 30, 2022 and an increase of 11.3% from December 31, 2021.
- Total loans and leases excluding PPP loans were $13.6 billion at December 31, 2022, an increase of 2.5% from September 30, 2022 and an increase of 12.3% from December 31, 2021.
Total deposits were $20.6 billion at December 31, 2022, a decrease of 1.3% from September 30, 2022 and an increase of 1.3% from December 31, 2021.

Capital and Dividends

The Tier 1 Capital Ratio was 12.15% at December 31, 2022 compared with 12.72% at September 30, 2022 and 13.56% at December 31, 2021.
The Tier 1 Leverage Ratio was 7.37% at December 31, 2022 compared with 7.28% at September 30, 2022 and 7.32% at December 31, 2021.
The Company repurchased 192.3 thousand shares of common stock at a total cost of $15.0 million under its share repurchase program in the fourth quarter of 2022 at an average cost of $77.77 per share repurchased.
- The Company’s Board of Directors increased the authorization under the share repurchase program by an additional $100.0 million. Total remaining buyback authority under the share repurchase program was $135.9 million at January 20, 2023.
The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on March 14, 2023 to shareholders of record at the close of business on February 28, 2023.
On January 4, 2023, the Board of Directors declared the quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, on its preferred stock. The depositary shares representing the Series A Preferred Stock are traded on the NYSE under the symbol “BOH.PRA.” The dividend will be payable on February 1, 2023 to shareholders of record of the preferred stock at the close of business on January 17, 2023.

Conference Call Information

The Company will review its fourth quarter 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 Hawai‘i Corporation's website, www.boh.com.

The webcast can be accessed via the link below: https://register.vevent.com/register/BIdfc785c2e350424681d5c04507f9b94f.
A replay of the conference call will be available for one year beginning approximately 11:00 a.m. Hawaii Time on Monday, January 23, 2023. The replay will be accessible via the same link. In addition, the replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawai‘i Corporation's Annual Report on Form 10-K for the year ended December 31, 2021 and its Form 10-Q for the fiscal quarters ended March 31, 2022, June 30, 2022 and September 30, 2022, 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 Hawai‘i Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawaii and the West Pacific. The Company's principal subsidiary, Bank of Hawai'i, was founded in 1897. For more information about Bank of Hawai‘i Corporation, see the Company’s web site, www.boh.com. Bank of Hawai‘i Corporation is a trade name of Bank of Hawaii Corporation.

Bank of Hawai‘i 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)	2022			2022			2021			2022			2021
For the Period:
Operating Results
Net Interest Income	$	140,738		$	141,655		$	126,388		$	540,558		$	497,290
Provision for Credit Losses		200			-			(9,700	)		(7,800	)		(50,500	)
Total Noninterest Income		41,172			30,660			42,574			157,541			171,353
Total Noninterest Expense		102,703			105,749			101,678			415,265			393,589
Pre-Provision Net Revenue		79,207			66,566			67,284			282,834			275,054
Net Income		61,307			52,801			63,837			225,804			253,372
Net Income Available to Common Shareholders		59,338			50,832			61,868			217,928			250,397
Basic Earnings Per Common Share		1.51			1.28			1.56			5.50			6.29
Diluted Earnings Per Common Share		1.50			1.28			1.55			5.48			6.25
Dividends Declared Per Common Share		0.70			0.70			0.70			2.80			2.74

Performance Ratios
Return on Average Assets		1.05	%		0.91	%		1.12	%		0.98	%		1.14	%
Return on Average Shareholders' Equity		18.91			15.31			15.92			16.10			16.94
Return on Average Common Equity		21.28			16.98			17.40			17.83			17.92
Efficiency Ratio ¹		56.46			61.37			60.18			59.49			58.86
Net Interest Margin ²		2.60			2.60			2.34			2.50			2.36
Dividend Payout Ratio ³		46.36			54.69			44.87			50.91			43.56
Average Shareholders' Equity to Average Assets		5.56			5.91			7.02			6.10			6.73

Average Balances
Average Loans and Leases	$	13,452,791		$	13,126,717		$	12,086,705		$	12,896,510		$	12,023,669
Average Assets		23,147,398			23,135,820			22,666,280			23,006,671			22,227,156
Average Deposits		20,341,327			20,863,681			20,222,470			20,550,739			19,771,147
Average Shareholders' Equity		1,286,291			1,367,946			1,590,600			1,402,533			1,495,586

Per Share of Common Stock
Book Value	$	28.54		$	27.55		$	35.57		$	28.54		$	35.57
Tangible Book Value		27.75			26.76			34.78			27.75			34.78
Market Value
Closing		77.56			76.12			83.76			77.56			83.76
High		82.87			85.45			88.96			92.38			99.10
Low		70.15			70.89			78.73			70.15			75.65

							December 31,			September 30,			December 31,
							2022			2022			2021
As of Period End:
Balance Sheet Totals
Loans and Leases							$	13,646,420		$	13,321,606		$	12,259,076
Total Assets								23,606,877			23,134,040			22,784,941
Total Deposits								20,615,696			20,888,773			20,360,108
Other Debt								410,294			10,319			10,391
Total Shareholders' Equity								1,316,995			1,282,384			1,611,611

Asset Quality
Non-Performing Assets							$	12,647		$	13,868		$	18,966
Allowance for Credit Losses - Loans and Leases								144,439			146,436			157,821
Allowance to Loans and Leases Outstanding ⁴								1.06	%		1.10	%		1.29	%

Capital Ratios ⁵
Common Equity Tier 1 Capital Ratio								10.92	%		11.42	%		12.12	%
Tier 1 Capital Ratio								12.15			12.72			13.56
Total Capital Ratio								13.17			13.82			14.81
Tier 1 Leverage Ratio								7.37			7.28			7.32
Total Shareholders' Equity to Total Assets								5.58			5.54			7.07
Tangible Common Equity to Tangible Assets ⁶								4.69			4.64			6.15
Tangible Common Equity to Risk-Weighted Assets ⁶								7.76			7.97			11.44

Non-Financial Data
Full-Time Equivalent Employees								2,076			2,115			2,056
Branches								51			51			54
ATMs								320			316			307

¹		Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
²		Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
³		Dividend payout ratio is defined as dividends declared per common share divided by basic earnings per common share.
⁴		The numerator comprises the Allowance for Credit Losses - Loans and Leases.
⁵		Regulatory capital ratios as of December 31, 2022 are preliminary.
⁶		Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures.
		Tangible common equity is defined by the Company as common shareholders' equity minus goodwill. See Table 2 "Reconciliation of Non-GAAP Financial Measures".

Bank of Hawai‘i Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures							Table 2
	December 31,			September 30,			December 31,
(dollars in thousands)	2022			2022			2021

Total Shareholders' Equity	$	1,316,995		$	1,282,384		$	1,611,611
Less: Preferred Stock		180,000			180,000			180,000
Goodwill		31,517			31,517			31,517
Tangible Common Equity	$	1,105,478		$	1,070,867		$	1,400,094

Total Assets		23,606,877			23,134,040			22,784,941
Less: Goodwill		31,517			31,517			31,517
Tangible Assets	$	23,575,360		$	23,102,523		$	22,753,424

Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements ¹	$	14,238,798		$	13,428,188		$	12,236,805

Total Shareholders' Equity to Total Assets		5.58	%		5.54	%		7.07	%
Tangible Common Equity to Tangible Assets (Non-GAAP)		4.69	%		4.64	%		6.15	%

Tier 1 Capital Ratio ¹		12.15	%		12.72	%		13.56	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) ¹		7.76	%		7.97	%		11.44	%

Regulatory capital ratios as of December 31, 2022 are preliminary.

Bank of Hawai‘i 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)	2022			2022			2021			2022			2021
Interest Income
Interest and Fees on Loans and Leases	$	128,683		$	115,013		$	97,853		$	439,798		$	398,616
Income on Investment Securities
Available-for-Sale		18,476			16,995			15,850			70,555			64,550
Held-to-Maturity		23,708			20,243			18,325			81,490			61,955
Deposits		13			10			1			32			10
Funds Sold		1,093			2,335			104			4,274			883
Other		340			322			176			1,217			702
Total Interest Income		172,313			154,918			132,309			597,366			526,716
Interest Expense
Deposits		23,494			10,296			2,898			39,678			15,216
Securities Sold Under Agreements to Repurchase		4,289			2,745			2,834			12,600			13,260
Funds Purchased		318			40			6			417			7
Short-Term Borrowings		1,978			-			-			2,070			-
Other Debt		1,496			182			183			2,043			943
Total Interest Expense		31,575			13,263			5,921			56,808			29,426
Net Interest Income		140,738			141,655			126,388			540,558			497,290
Provision for Credit Losses		200			-			(9,700	)		(7,800	)		(50,500	)
Net Interest Income After Provision for Credit Losses		140,538			141,655			136,088			548,358			547,790
Noninterest Income
Trust and Asset Management		10,652			10,418			11,693			43,803			46,068
Mortgage Banking		991			1,002			2,908			5,980			14,964
Service Charges on Deposit Accounts		7,513			7,526			6,861			29,620			25,564
Fees, Exchange, and Other Service Charges		13,906			13,863			14,439			54,914			55,457
Investment Securities Losses, Net		(1,124	)		(2,147	)		(1,258	)		(6,111	)		(1,297	)
Annuity and Insurance		1,087			1,034			876			3,782			3,224
Bank-Owned Life Insurance		2,475			2,486			1,907			9,968			7,784
Other		5,672			(3,522	)		5,148			15,585			19,589
Total Noninterest Income		41,172			30,660			42,574			157,541			171,353
Noninterest Expense
Salaries and Benefits		57,639			59,938			59,434			235,270			228,293
Net Occupancy		9,499			10,186			9,028			39,441			26,244
Net Equipment		9,942			9,736			9,105			38,374			35,703
Data Processing		4,579			4,616			4,696			18,362			20,297
Professional Fees		3,958			3,799			3,427			14,557			12,895
FDIC Insurance		1,774			1,680			1,619			6,546			6,536
Other		15,312			15,794			14,369			62,715			63,621
Total Noninterest Expense		102,703			105,749			101,678			415,265			393,589
Income Before Provision for Income Taxes		79,007			66,566			76,984			290,634			325,554
Provision for Income Taxes		17,700			13,765			13,147			64,830			72,182
Net Income	$	61,307		$	52,801		$	63,837		$	225,804		$	253,372
Preferred Stock Dividends		1,969			1,969			1,969			7,877			2,975
Net Income Available to Common Shareholders	$	59,338		$	50,832		$	61,868		$	217,927		$	250,397
Basic Earnings Per Common Share	$	1.51		$	1.28		$	1.56		$	5.50		$	6.29
Diluted Earnings Per Common Share	$	1.50		$	1.28		$	1.55		$	5.48		$	6.25
Dividends Declared Per Common Share	$	0.70		$	0.70		$	0.70		$	2.80		$	2.74
Basic Weighted Average Common Shares		39,395,338			39,567,047			39,741,063			39,601,089			39,837,798
Diluted Weighted Average Common Shares		39,618,896			39,758,209			39,955,525			39,788,002			40,053,664

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)												Table 4
	Three Months Ended								Year Ended
	December 31,		September 30,			December 31,			December 31,
(dollars in thousands)	2022		2022			2021			2022			2021
Net Income	$	61,307	$	52,801		$	63,837		$	225,804		$	253,372
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities		5,677		(79,600	)		(26,244	)		(376,694	)		(83,958	)
Defined Benefit Plans		7,359		354			8,430			8,418			9,754
Other Comprehensive Income (Loss)		13,036		(79,246	)		(17,814	)		(368,276	)		(74,204	)
Comprehensive Income (Loss)	$	74,343	$	(26,445	)	$	46,023		$	(142,472	)	$	179,168

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Condition							Table 5
	December 31,			September 30,			December 31,
(dollars in thousands)	2022			2022			2021
Assets
Interest-Bearing Deposits in Other Banks	$	3,724		$	5,429		$	2,571
Funds Sold		81,364			402,714			361,536
Investment Securities
Available-for-Sale		2,844,823			2,424,608			4,276,056
Held-to-Maturity (Fair Value of $4,615,393; $4,668,074; and $4,646,619)		5,414,139			5,461,160			4,694,780
Loans Held for Sale		1,035			418			26,746
Loans and Leases		13,646,420			13,321,606			12,259,076
Allowance for Credit Losses		(144,439	)		(146,436	)		(157,821	)
Net Loans and Leases		13,501,981			13,175,170			12,101,255
Total Earning Assets		21,847,066			21,469,499			21,462,944
Cash and Due from Banks		316,679			247,506			196,327
Premises and Equipment, Net		206,777			208,251			199,393
Operating Lease Right-of-Use Assets		92,307			94,613			95,621
Accrued Interest Receivable		61,002			50,143			45,242
Foreclosed Real Estate		1,040			1,040			2,332
Mortgage Servicing Rights		22,619			23,104			22,251
Goodwill		31,517			31,517			31,517
Bank-Owned Life Insurance		453,882			451,407			344,587
Other Assets		573,988			556,960			384,727
Total Assets	$	23,606,877		$	23,134,040		$	22,784,941

Liabilities
Deposits
Noninterest-Bearing Demand	$	6,714,982		$	7,300,157		$	7,275,287
Interest-Bearing Demand		4,232,567			4,399,625			4,628,567
Savings		7,962,410			7,954,006			7,456,165
Time		1,705,737			1,234,985			1,000,089
Total Deposits		20,615,696			20,888,773			20,360,108
Securities Sold Under Agreements to Repurchase		725,490			425,490			450,490
Other Debt		410,294			10,319			10,391
Operating Lease Liabilities		100,526			102,705			103,210
Retirement Benefits Payable		26,991			37,053			38,494
Accrued Interest Payable		9,698			3,405			2,499
Taxes Payable		7,104			13,527			11,901
Other Liabilities		394,083			370,384			196,237
Total Liabilities		22,289,882			21,851,656			21,173,330
Shareholders' Equity
Preferred Stock ($.01 par value; authorized 180,000 shares;
issued / outstanding: December 31, 2022; September 30, 2022; and December 31, 2021 - 180,000)		180,000			180,000			180,000
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2022 - 58,733,625 / 39,835,750;
September 30, 2022 - 58,728,796 / 40,011,473; and December 31, 2021 - 58,554,669 / 40,253,193)		582			582			581
Capital Surplus		620,578			615,985			602,508
Accumulated Other Comprehensive Loss		(434,658	)		(447,694	)		(66,382	)
Retained Earnings		2,055,912			2,024,641			1,950,375
Treasury Stock, at Cost (Shares: December 31, 2022 - 18,897,875; September 30, 2022 - 18,717,323;
and December 31, 2021 - 18,301,476)		(1,105,419	)		(1,091,130	)		(1,055,471	)
Total Shareholders' Equity		1,316,995			1,282,384			1,611,611
Total Liabilities and Shareholders' Equity	$	23,606,877		$	23,134,040		$	22,784,941

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																				Table 6
											Accumulated
											Other
	Preferred			Common							Comprehensive
	Shares	Preferred		Shares		Common		Capital			Income			Retained			Treasury
(dollars in thousands)	Outstanding	Stock		Outstanding		Stock		Surplus			(Loss)			Earnings			Stock			Total
Balance as of December 31, 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 and Related Tax Benefits	-		-	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

Net Income	-		-	-			-		-			-			225,804			-			225,804
Other Comprehensive Loss	-		-	-			-		-			(368,276	)		-			-			(368,276	)
Share-Based Compensation	-		-	-			-		16,066			-			-			-			16,066
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits	-		-	272,007			1		2,004			-			167			5,115			7,287
Common Stock Repurchased	-		-	(689,450	)		-		-			-			-			(55,063	)		(55,063	)
Cash Dividends Declared Common Stock ($2.80 per share)	-		-	-			-		-			-			(112,557	)		-			(112,557	)
Cash Dividends Declared Preferred Stock	-		-	-			-		-			-			(7,877	)		-			(7,877	)
Balance as of December 31, 2022	180,000	$	180,000	39,835,750		$	582	$	620,578		$	(434,658	)	$	2,055,912		$	(1,105,419	)	$	1,316,995

Bank of Hawai‘i 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, 2022						September 30, 2022						December 31, 2021
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense ²		Rate		Balance		Expense ²		Rate		Balance		Expense ²		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	2.2	$	-	2.32	%	$	2.9	$	-	1.32	%	$	2.2	$	-	0.05	%
Funds Sold		118.1		1.2	3.62			411.8		2.3	2.22			273.2		0.1	0.15
Investment Securities
Available-for-Sale
Taxable		2,593.5		18.4	2.83			3,481.9		17.0	1.95			4,308.6		15.8	1.47
Non-Taxable		7.5		0.1	4.14			2.5		-	1.56			5.8		0.1	3.67
Held-to-Maturity
Taxable		5,401.9		23.5	1.74			4,645.7		20.1	1.73			4,757.4		18.1	1.52
Non-Taxable		35.4		0.2	2.10			35.6		0.2	2.10			58.0		0.3	2.31
Total Investment Securities		8,038.3		42.2	2.10			8,165.7		37.3	1.82			9,129.8		34.3	1.50
Loans Held for Sale		3.3		-	5.65			4.3		0.1	4.46			20.8		0.1	2.85
Loans and Leases ³
Commercial and Industrial		1,379.9		14.8	4.25			1,353.8		12.5	3.66			1,297.0		8.9	2.72
Paycheck Protection Program		21.3		0.1	2.30			28.0		0.2	3.02			181.0		5.7	12.55
Commercial Mortgage		3,627.4		40.6	4.44			3,530.9		33.3	3.74			3,075.1		22.2	2.86
Construction		246.9		3.3	5.29			233.0		2.8	4.81			246.8		2.2	3.50
Commercial Lease Financing		72.0		0.3	1.49			89.1		0.4	1.58			107.4		0.3	1.12
Residential Mortgage		4,617.9		38.9	3.37			4,526.6		37.4	3.30			4,293.6		33.9	3.16
Home Equity		2,207.7		17.9	3.23			2,144.8		16.4	3.04			1,757.8		12.8	2.88
Automobile		851.1		7.0	3.29			795.5		6.4	3.19			730.2		6.1	3.34
Other ⁴		428.6		6.1	5.64			425.0		5.9	5.48			397.8		5.8	5.79
Total Loans and Leases		13,452.8		129.0	3.81			13,126.7		115.3	3.49			12,086.7		97.9	3.22
Other		50.1		0.4	2.72			36.9		0.3	3.49			34.4		0.2	2.05
Total Earning Assets		21,664.8		172.8	3.17			21,748.3		155.3	2.84			21,547.1		132.6	2.45
Cash and Due from Banks		244.3						233.5						231.3
Other Assets		1,238.3						1,154.0						887.9
Total Assets	$	23,147.4					$	23,135.8					$	22,666.3

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	4,131.4		3.5	0.33		$	4,286.0		1.4	0.13		$	4,685.7		0.7	0.06
Savings		7,869.9		13.4	0.68			7,962.0		6.6	0.33			7,443.2		1.2	0.06
Time		1,467.7		6.6	1.78			1,146.9		2.3	0.79			1,019.2		1.0	0.40
Total Interest-Bearing Deposits		13,469.0		23.5	0.69			13,394.9		10.3	0.30			13,148.1		2.9	0.09
Short-Term Borrowings		234.9		2.3	3.82			4.9		0.1	3.17			18.5		-	0.13
Securities Sold Under Agreements to Repurchase		594.5		4.3	2.82			425.5		2.7	2.52			450.5		2.8	2.46
Other Debt		137.5		1.5	4.32			10.3		0.2	7.05			10.4		0.2	7.05
Total Interest-Bearing Liabilities		14,435.9		31.6	0.87			13,835.6		13.3	0.38			13,627.5		5.9	0.17
Net Interest Income			$	141.2					$	142.0					$	126.7
Interest Rate Spread					2.30	%					2.46	%					2.28	%
Net Interest Margin					2.60	%					2.60	%					2.34	%
Noninterest-Bearing Demand Deposits		6,872.3						7,468.8						7,074.4
Other Liabilities		552.9						463.5						373.8
Shareholders' Equity		1,286.3						1,367.9						1,590.6
Total Liabilities and Shareholders' Equity	$	23,147.4					$	23,135.8					$	22,666.3

Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.

Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $433,000, $343,000, and $280,000 for the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, respectively.

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

⁴

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

Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis ¹									Table 7b
	Year Ended						Year Ended
	December 31, 2022						December 31, 2021
	Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense ²		Rate		Balance		Expense ²		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	3.0	$	-	1.05	%	$	2.7	$	-	0.36	%
Funds Sold		260.5		4.3	1.64			692.4		0.9	0.13
Investment Securities
Available-for-Sale
Taxable		3,644.2		70.5	1.93			4,266.9		64.2	1.50
Non-Taxable		4.0		0.1	2.92			10.1		0.4	4.21
Held-to-Maturity
Taxable		4,750.0		80.9	1.70			3,988.1		61.0	1.53
Non-Taxable		35.6		0.7	2.10			50.7		1.2	2.41
Total Investment Securities		8,433.8		152.2	1.80			8,315.8		126.8	1.53
Loans Held for Sale		6.9		0.3	3.70			24.3		0.7	2.82
Loans and Leases ³
Commercial and Industrial		1,349.3		46.2	3.42			1,285.1		37.1	2.88
Paycheck Protection Program		44.0		2.7	6.07			453.9		25.7	5.67
Commercial Mortgage		3,420.1		121.9	3.56			2,940.0		86.7	2.95
Construction		232.6		10.6	4.56			271.6		9.5	3.50
Commercial Lease Financing		88.5		1.3	1.49			107.2		1.5	1.42
Residential Mortgage		4,484.2		147.4	3.29			4,232.4		140.1	3.31
Home Equity		2,072.2		62.1	3.00			1,637.1		49.6	3.03
Automobile		786.1		25.4	3.23			717.0		24.6	3.43
Other ⁴		419.5		23.0	5.49			379.4		23.9	6.30
Total Loans and Leases		12,896.5		440.6	3.42			12,023.7		398.7	3.32
Other		40.5		1.2	3.01			32.9		0.7	2.13
Total Earning Assets		21,641.2		598.6	2.77			21,091.8		527.8	2.50
Cash and Due from Banks		237.4						252.5
Other Assets		1,128.1						882.9
Total Assets	$	23,006.7					$	22,227.2

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	4,377.1		6.1	0.14		$	4,509.8		2.7	0.06
Savings		7,767.7		22.9	0.30			7,421.9		6.2	0.08
Time		1,135.5		10.7	0.94			1,331.8		6.3	0.47
Total Interest-Bearing Deposits		13,280.3		39.7	0.30			13,263.5		15.2	0.11
Short-Term Borrowings		77.1		2.5	3.23			5.2		-	0.13
Securities Sold Under Agreements to Repurchase		479.8		12.6	2.63			541.9		13.3	2.45
Other Debt		42.4		2.0	4.82			27.7		0.9	3.41
Total Interest-Bearing Liabilities		13,879.6		56.8	0.41			13,838.3		29.4	0.21
Net Interest Income			$	541.8					$	498.4
Interest Rate Spread					2.36	%					2.29	%
Net Interest Margin					2.50	%					2.36	%
Noninterest-Bearing Demand Deposits		7,270.4						6,507.6
Other Liabilities		454.2						385.7
Shareholders' Equity		1,402.5						1,495.6
Total Liabilities and Shareholders' Equity	$	23,006.7					$	22,227.2

¹		Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
²		Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1,251,000 and $1,116,000 for the year ended December 31, 2022 and December 31, 2021, respectively.
³		Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
⁴		Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended December 31, 2022
	Compared to September 30, 2022
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(2.1	)	$	1.0		$	(1.1	)
Investment Securities
Available-for-Sale
Taxable		(5.1	)		6.5			1.4
Non-Taxable		0.1			-			0.1
Held-to-Maturity
Taxable		3.2			0.2			3.4
Total Investment Securities		(1.8	)		6.7			4.9
Loans Held for Sale		(0.1	)		-			(0.1	)
Loans and Leases
Commercial and Industrial		0.3			2.0			2.3
Paycheck Protection Program		(0.1	)		-			(0.1	)
Commercial Mortgage		0.9			6.4			7.3
Construction		0.2			0.3			0.5
Commercial Lease Financing		(0.1	)		-			(0.1	)
Residential Mortgage		0.8			0.7			1.5
Home Equity		0.5			1.0			1.5
Automobile		0.4			0.2			0.6
Other ²		-			0.2			0.2
Total Loans and Leases		2.9			10.8			13.7
Other		0.4			(0.3	)		0.1
Total Change in Interest Income		(0.7	)		18.2			17.5

Change in Interest Expense:
Interest-Bearing Deposits
Demand		-			2.1			2.1
Savings		(0.1	)		6.9			6.8
Time		0.8			3.5			4.3
Total Interest-Bearing Deposits		0.7			12.5			13.2
Short-Term Borrowings		2.2			-			2.2
Securities Sold Under Agreements to Repurchase		1.2			0.4			1.6
Other Debt		1.4			(0.1	)		1.3
Total Change in Interest Expense		5.5			12.8			18.3

Change in Net Interest Income	$	(6.2	)	$	5.4		$	(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 Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8b
	Three Months Ended December 31, 2022
	Compared to December 31, 2021
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(0.1	)	$	1.2		$	1.1
Investment Securities
Available-for-Sale
Taxable		(8.1	)		10.7			2.6
Held-to-Maturity
Taxable		2.6			2.8			5.4
Non-Taxable		(0.1	)		-			(0.1	)
Total Investment Securities		(5.6	)		13.5			7.9
Loans Held for Sale		(0.2	)		0.1			(0.1	)
Loans and Leases
Commercial and Industrial		0.6			5.3			5.9
Paycheck Protection Program		(2.9	)		(2.7	)		(5.6	)
Commercial Mortgage		4.5			13.9			18.4
Construction		-			1.1			1.1
Commercial Lease Financing		(0.1	)		0.1			-
Residential Mortgage		2.7			2.3			5.0
Home Equity		3.5			1.6			5.1
Automobile		1.0			(0.1	)		0.9
Other ²		0.4			(0.1	)		0.3
Total Loans and Leases		9.7			21.4			31.1
Other		0.1			0.1			0.2
Total Change in Interest Income		3.9			36.3			40.2

Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.1	)		2.9			2.8
Savings		0.1			12.1			12.2
Time		0.6			5.0			5.6
Total Interest-Bearing Deposits		0.6			20.0			20.6
Short-Term Borrowings		0.7			1.6			2.3
Securities Sold Under Agreements to Repurchase		1.0			0.5			1.5
Other Debt		1.4			(0.1	)		1.3
Total Change in Interest Expense		3.7			22.0			25.7

Change in Net Interest Income	$	0.2		$	14.3		$	14.5

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

Bank of Hawai‘i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8c
	Year Ended December 31, 2022
	Compared to December 31, 2021
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(0.9	)	$	4.3		$	3.4
Investment Securities
Available-for-Sale
Taxable		(10.3	)		16.6			6.3
Non-Taxable		(0.2	)		(0.1	)		(0.3	)
Held-to-Maturity
Taxable		12.5			7.4			19.9
Non-Taxable		(0.3	)		(0.2	)		(0.5	)
Total Investment Securities		1.7			23.7			25.4
Loans Held for Sale		(0.6	)		0.2			(0.4	)
Loans and Leases
Commercial and Industrial		1.9			7.2			9.1
Paycheck Protection Program		(24.8	)		1.8			(23.0	)
Commercial Mortgage		15.5			19.7			35.2
Construction		(1.5	)		2.6			1.1
Commercial Lease Financing		(0.2	)		-			(0.2	)
Residential Mortgage		8.3			(1.0	)		7.3
Home Equity		13.1			(0.6	)		12.5
Automobile		2.3			(1.5	)		0.8
Other²		2.3			(3.2	)		(0.9	)
Total Loans and Leases		16.9			25.0			41.9
Other		0.2			0.3			0.5
Total Change in Interest Income		17.3			53.5			70.8

Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.1	)		3.5			3.4
Savings		0.3			16.4			16.7
Time		(1.0	)		5.4			4.4
Total Interest-Bearing Deposits		(0.8	)		25.3			24.5
Short-Term Borrowings		0.9			1.6			2.5
Securities Sold Under Agreements to Repurchase		(1.6	)		0.9			(0.7	)
Other Debt		0.6			0.5			1.1
Total Change in Interest Expense		(0.9	)		28.3			27.4

Change in Net Interest Income	$	18.2		$	25.2		$	43.4

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 Hawai‘i Corporation and Subsidiaries
Salaries and Benefits										Table 9
	Three Months Ended							Year Ended
	December 31,			September 30,		December 31,		December 31,
(dollars in thousands)	2022			2022		2021		2022		2021
Salaries	$	37,395		$	37,792	$	35,758	$	146,840	$	135,416
Incentive Compensation		5,356			5,885		6,699		23,425		22,462
Share-Based Compensation		3,901			3,558		3,396		15,220		12,489
Commission Expense		830			1,005		2,094		4,708		8,901
Retirement and Other Benefits		4,065			4,448		4,661		17,242		20,213
Payroll Taxes		2,591			2,826		2,585		13,395		12,404
Medical, Dental, and Life Insurance		3,528			2,605		3,981		11,958		12,831
Separation Expense		(27	)		1,819		260		2,482		3,577
Total Salaries and Benefits	$	57,639		$	59,938	$	59,434	$	235,270	$	228,293

Bank of Hawai‘i Corporation and Subsidiaries
Loan and Lease Portfolio Balances									Table 10
	December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)	2022		2022		2022		2022		2021
Commercial
Commercial and Industrial	$	1,389,066	$	1,368,966	$	1,323,830	$	1,354,757	$	1,361,921
Paycheck Protection Program		19,579		22,955		31,964		57,809		126,779
Commercial Mortgage		3,725,542		3,591,943		3,464,126		3,257,689		3,152,130
Construction		260,825		236,498		246,177		248,363		220,254
Lease Financing		69,491		73,989		89,535		98,107		105,108
Total Commercial		5,464,503		5,294,351		5,155,632		5,016,725		4,966,192
Consumer
Residential Mortgage		4,653,072		4,585,723		4,486,571		4,405,718		4,309,602
Home Equity		2,225,950		2,185,484		2,101,612		1,958,285		1,836,588
Automobile		870,396		820,640		775,065		742,934		736,565
Other ¹		432,499		435,408		432,693		420,830		410,129
Total Consumer		8,181,917		8,027,255		7,795,941		7,527,767		7,292,884
Total Loans and Leases	$	13,646,420	$	13,321,606	$	12,951,573	$	12,544,492	$	12,259,076


Deposits
	December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)	2022		2022		2022		2022		2021
Consumer	$	10,304,335	$	10,507,946	$	10,554,121	$	10,654,192	$	10,438,844
Commercial		8,569,670		8,841,781		8,824,609		8,818,477		8,641,932
Public and Other		1,741,691		1,539,046		1,646,951		1,243,618		1,279,332
Total Deposits	$	20,615,696	$	20,888,773	$	21,025,681	$	20,716,287	$	20,360,108

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

Bank of Hawai‘i Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More													Table 11
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	2022			2022			2022			2022			2021
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial	$	37		$	49		$	85		$	99		$	243
Commercial Mortgage		3,309			3,396			3,462			8,065			8,205
Total Commercial		3,346			3,445			3,547			8,164			8,448
Consumer
Residential Mortgage		4,239			4,945			5,179			3,845			3,305
Home Equity		4,022			4,438			4,435			5,638			4,881
Total Consumer		8,261			9,383			9,614			9,483			8,186
Total Non-Accrual Loans and Leases		11,607			12,828			13,161			17,647			16,634
Foreclosed Real Estate		1,040			1,040			2,332			2,332			2,332
Total Non-Performing Assets	$	12,647		$	13,868		$	15,493		$	19,979		$	18,966

Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial	$	-		$	-		$	-		$	22		$	-
Total Commercial		-			-			-			22			-
Consumer
Residential Mortgage		2,429			3,279			2,638			4,113			3,159
Home Equity		1,673			1,061			2,029			2,722			3,456
Automobile		589			467			359			504			729
Other ¹		683			513			508			649			426
Total Consumer		5,374			5,320			5,534			7,988			7,770
Total Accruing Loans and Leases Past Due 90 Days or More	$	5,374		$	5,320		$	5,534		$	8,010		$	7,770
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More	$	43,658		$	44,641		$	46,024		$	54,136		$	60,519
Total Loans and Leases	$	13,646,420		$	13,321,606		$	12,951,573		$	12,544,492		$	12,259,076

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases		0.09	%		0.10	%		0.10	%		0.14	%		0.14	%

Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate		0.09	%		0.10	%		0.12	%		0.16	%		0.15	%

Ratio of Non-Performing Assets to Total Assets		0.05	%		0.06	%		0.06	%		0.07	%		0.07	%

Ratio of Commercial Non-Performing Assets to Total Commercial Loans
and Leases and Commercial Foreclosed Real Estate		0.06	%		0.07	%		0.07	%		0.16	%		0.17	%

Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate		0.11	%		0.13	%		0.15	%		0.16	%		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		0.13	%		0.14	%		0.16	%		0.22	%		0.22	%

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter	$	13,868		$	15,493		$	19,979		$	18,966		$	20,620
Additions		704			489			2,293			2,243			357
Reductions
Payments		(1,605	)		(706	)		(5,511	)		(1,230	)		(972	)
Return to Accrual Status		(301	)		(116	)		(1,267	)		-			(1,038	)
Sales of Foreclosed Real Estate		-			(1,292	)		-			-			-
Charge-offs / Write-downs		(19	)		-			(1	)		-			(1	)
Total Reductions		(1,925	)		(2,114	)		(6,779	)		(1,230	)		(2,011	)
Balance at End of Quarter	$	12,647		$	13,868		$	15,493		$	19,979		$	18,966

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

Bank of Hawai‘i Corporation and Subsidiaries
Reserve for Credit Losses													Table 12
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
(dollars in thousands)	2022			2022			2021			2022			2021
Balance at Beginning of Period	$	152,927		$	154,098		$	174,708		$	164,297		$	221,303

Loans and Leases Charged-Off
Commercial
Commercial and Industrial		(196	)		(147	)		(217	)		(925	)		(1,117	)
Consumer
Residential Mortgage		-			-			-			(80	)		(316	)
Home Equity		(10	)		-			(5	)		(100	)		(417	)
Automobile		(1,171	)		(794	)		(1,045	)		(4,652	)		(4,939	)
Other ¹		(1,846	)		(1,924	)		(2,007	)		(7,585	)		(10,530	)
Total Loans and Leases Charged-Off		(3,223	)		(2,865	)		(3,274	)		(13,342	)		(17,319	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial		87			45			132			552			506
Consumer
Residential Mortgage		63			156			858			1,193			2,467
Home Equity		202			367			390			1,500			1,666
Automobile		412			441			476			2,276			3,510
Other ¹		604			709			746			2,702			3,205
Total Recoveries on Loans and Leases Previously Charged-Off		1,368			1,718			2,602			8,223			11,354
Net Charged-Off - Loans and Leases		(1,855	)		(1,147	)		(672	)		(5,119	)		(5,965	)
Net Charged-Off - Accrued Interest Receivable		(25	)		-			(39	)		(131	)		(541	)
Provision for Credit Losses:
Loans and Leases		(142	)		(929	)		(9,427	)		(8,263	)		(52,466	)
Accrued Interest Receivable		25			-			(214	)		(283	)		(1,745	)
Unfunded Commitments		317			905			(59	)		746			3,711
Total Provision for Credit Losses		200			(24	)		(9,700	)		(7,800	)		(50,500	)
Balance at End of Period	$	151,247		$	152,927		$	164,297		$	151,247		$	164,297

Components
Allowance for Credit Losses - Loans and Leases	$	144,439		$	146,436		$	157,821		$	144,439		$	157,821
Allowance for Credit Losses - Accrued Interest Receivable		-			-			414			-			414
Reserve for Unfunded Commitments		6,808			6,491			6,062			6,808			6,062
Total Reserve for Credit Losses	$	151,247		$	152,927		$	164,297		$	151,247		$	164,297

Average Loans and Leases Outstanding	$	13,452,791		$	13,126,717		$	12,086,705		$	12,896,510		$	12,023,669

Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)		0.05	%		0.03	%		0.02	%		0.04	%		0.05	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding ²		1.06	%		1.10	%		1.29	%		1.06	%		1.29	%

¹		Comprised of other revolving credit, installment, and lease financing.
²		The numerator comprises the Allowance for Credit Losses - Loans and Leases.

Bank of Hawai‘i Corporation and Subsidiaries
Business Segments Selected Financial Information										Table 13a
	Consumer			Commercial			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			and Other			Total
Three Months Ended December 31, 2022
Net Interest Income (Loss)	$	94,918		$	56,878		$	(11,058	)	$	140,738
Provision for Credit Losses		1,861			(6	)		(1,655	)		200
Net Interest Income (Loss) After Provision for Credit Losses		93,057			56,884			(9,403	)		140,538
Noninterest Income		31,526			8,288			1,358			41,172
Noninterest Expense		(82,383	)		(17,587	)		(2,733	)		(102,703	)
Income (Loss) Before Income Taxes		42,200			47,585			(10,778	)		79,007
Provision for Income Taxes		(10,846	)		(12,005	)		5,151			(17,700	)
Net Income (Loss)	$	31,354		$	35,580		$	(5,627	)	$	61,307
Total Assets as of December 31, 2022	$	8,545,896		$	5,522,916		$	9,538,065		$	23,606,877

Three Months Ended December 31, 2021 ¹
Net Interest Income	$	71,146		$	48,140		$	7,102		$	126,388
Provision for Credit Losses		676			(4	)		(10,372	)		(9,700	)
Net Interest Income After Provision for Credit Losses		70,470			48,144			17,474			136,088
Noninterest Income		32,948			8,298			1,328			42,574
Noninterest Expense		(81,385	)		(17,127	)		(3,166	)		(101,678	)
Income Before Income Taxes		22,033			39,315			15,636			76,984
Provision for Income Taxes		(5,609	)		(9,436	)		1,898			(13,147	)
Net Income	$	16,424		$	29,879		$	17,534		$	63,837
Total Assets as of December 31, 2021 ¹	$	7,701,447		$	5,107,001		$	9,976,493		$	22,784,941

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

Bank of Hawai‘i 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, 2022 ¹
Net Interest Income	$	327,940		$	209,272		$	3,346		$	540,558
Provision for Credit Losses		5,324			(205	)		(12,919	)		(7,800	)
Net Interest Income After Provision for Credit Losses		322,616			209,477			16,265			548,358
Noninterest Income		126,336			25,937			5,268			157,541
Noninterest Expense		(330,561	)		(70,601	)		(14,103	)		(415,265	)
Income Before Income Taxes		118,391			164,813			7,430			290,634
Provision for Income Taxes		(29,974	)		(40,659	)		5,803			(64,830	)
Net Income	$	88,417		$	124,154		$	13,233		$	225,804
Total Assets as of December 31, 2022 ¹	$	8,545,896		$	5,522,916		$	9,538,065		$	23,606,877

Year Ended December 31, 2021 ¹
Net Interest Income	$	284,597		$	194,409		$	18,284		$	497,290
Provision for Credit Losses		5,764			201			(56,465	)		(50,500	)
Net Interest Income After Provision for Credit Losses		278,833			194,208			74,749			547,790
Noninterest Income		131,292			30,637			9,424			171,353
Noninterest Expense		(304,177	)		(64,470	)		(24,942	)		(393,589	)
Income Before Income Taxes		105,948			160,375			59,231			325,554
Provision for Income Taxes		(26,474	)		(39,070	)		(6,638	)		(72,182	)
Net Income	$	79,474		$	121,305		$	52,593		$	253,372
Total Assets as of December 31, 2021 ¹	$	7,701,447		$	5,107,001		$	9,976,493		$	22,784,941

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

Bank of Hawai‘i Corporation and Subsidiaries
Selected Quarterly Financial Data													Table 14
	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands, except per share amounts)	2022			2022			2022			2022			2021
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	128,683		$	115,013		$	101,663		$	94,439		$	97,853
Income on Investment Securities
Available-for-Sale		18,476			16,995			17,984			17,100			15,850
Held-to-Maturity		23,708			20,243			18,838			18,701			18,325
Deposits		13			10			5			4			1
Funds Sold		1,093			2,335			719			127			104
Other		340			322			353			202			176
Total Interest Income		172,313			154,918			139,562			130,573			132,309
Interest Expense
Deposits		23,494			10,296			3,535			2,353			2,898
Securities Sold Under Agreements to Repurchase		4,289			2,745			2,794			2,772			2,834
Funds Purchased		318			40			57			2			6
Short-Term Borrowings		1,978			-			92			-			-
Other Debt		1,496			182			182			183			183
Total Interest Expense		31,575			13,263			6,660			5,310			5,921
Net Interest Income		140,738			141,655			132,902			125,263			126,388
Provision for Credit Losses		200			-			(2,500	)		(5,500	)		(9,700	)
Net Interest Income After Provision for Credit Losses		140,538			141,655			135,402			130,763			136,088
Noninterest Income
Trust and Asset Management		10,652			10,418			11,457			11,276			11,693
Mortgage Banking		991			1,002			1,247			2,740			2,908
Service Charges on Deposit Accounts		7,513			7,526			7,309			7,272			6,861
Fees, Exchange, and Other Service Charges		13,906			13,863			14,193			12,952			14,439
Investment Securities Losses, Net		(1,124	)		(2,147	)		(1,295	)		(1,545	)		(1,258	)
Annuity and Insurance		1,087			1,034			870			791			876
Bank-Owned Life Insurance		2,475			2,486			2,658			2,349			1,907
Other		5,672			(3,522	)		5,719			7,716			5,148
Total Noninterest Income		41,172			30,660			42,158			43,551			42,574
Noninterest Expense
Salaries and Benefits		57,639			59,938			57,769			59,924			59,434
Net Occupancy		9,499			10,186			9,930			9,826			9,028
Net Equipment		9,942			9,736			9,543			9,153			9,105
Data Processing		4,579			4,616			4,607			4,560			4,696
Professional Fees		3,958			3,799			3,542			3,258			3,427
FDIC Insurance		1,774			1,680			1,590			1,502			1,619
Other		15,312			15,794			15,958			15,651			14,369
Total Noninterest Expense		102,703			105,749			102,939			103,874			101,678
Income Before Provision for Income Taxes		79,007			66,566			74,621			70,440			76,984
Provision for Income Taxes		17,700			13,765			17,759			15,606			13,147
Net Income	$	61,307		$	52,801		$	56,862		$	54,834		$	63,837
Preferred Stock Dividends		1,969			1,969			1,969			1,969			1,969
Net Income Available to Common Shareholders	$	59,338		$	50,832		$	54,893		$	52,865		$	61,868

Basic Earnings Per Common Share	$	1.51		$	1.28		$	1.38		$	1.33		$	1.56
Diluted Earnings Per Common Share	$	1.50		$	1.28		$	1.38		$	1.32		$	1.55

Balance Sheet Totals
Loans and Leases	$	13,646,420		$	13,321,606		$	12,951,573		$	12,544,492		$	12,259,076
Total Assets		23,606,877			23,134,040			23,232,699			23,000,317			22,784,941
Total Deposits		20,615,696			20,888,773			21,025,681			20,716,287			20,360,108
Total Shareholders' Equity		1,316,995			1,282,384			1,348,746			1,448,885			1,611,611

Performance Ratios
Return on Average Assets		1.05	%		0.91	%		1.00	%		0.97	%		1.12	%
Return on Average Shareholders' Equity		18.91			15.31			16.40			14.18			15.92
Return on Average Common Equity		21.28			16.98			18.19			15.44			17.40
Efficiency Ratio ¹		56.46			61.37			58.80			61.53			60.18
Net Interest Margin ²		2.60			2.60			2.47			2.34			2.34

¹		Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
²		Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.

Bank of Hawai‘i Corporation and Subsidiaries
Hawaii Economic Trends													Table 15
	Eleven Months Ended				Year Ended
(dollars in millions; jobs in thousands)	November 30, 2022				December 31, 2021					December 31, 2020
Hawaii Economic Trends
State General Fund Revenues¹	$	8,675.9	16.7	%	$	8,137.9		26.9	%	$	6,415.1		(12.3	)%
General Excise and Use Tax Revenue¹		3,916.3	18.9			3,604.3		18.6			3,038.8		(15.6	)
Jobs ²		652.3				642.6					594.4

								November 31,		December 31,
								2022		2021			2020
Unemployment, seasonally adjusted³
Statewide								3.3	%		4.3	%	9.8	%
Honolulu County								3.4			4.0		8.8
Hawaii County								3.0			4.2		9.3
Maui County								3.5			5.4		13.9
Kauai County								3.2			6.0		13.6

					December 31,
(1-year percentage change, except months of inventory)					2022			2021		2020			2019
Housing Trends (Single Family Oahu) ⁴
Median Home Price						11.6	%	19.3	%		5.2	%	(0.1	)%
Home Sales Volume (units)						(23.2	)%	17.9	%		2.3	%	3.9	%
Months of Inventory						2.1		0.8			1.4		2.5

					Monthly Visitor Arrivals,					Percentage Change
(in thousands)					Not Seasonally Adjusted					from Previous Year
Tourism ⁵
November 30, 2022								725.5					18.2	%
October 31, 2022								726.1					31.8
September 30, 2022								691.8					37.1
August 31, 2022								829.7					14.8
July 31, 2022								919.2					4.5
June 30, 2022								841.8					6.4
May 31, 2022								774.1					22.9
April 30, 2022								809.6					67.3
March 31, 2022								785.7					78.7
February 28, 2022								623.7					165.1
January 31, 2022								567.2					229.8
December 31,2021								753.7					219.6
November 30, 2021								614.0					234.1
October 31, 2021								550.8					618.2
September 30, 2021								504.6					2,641.0
August 31, 2021								723.0					2,995.6
July 31, 2021								879.6					3,798.4
June 30, 2021								791.1					4,534.7
May 31, 2021								629.7					6,807.4
April 30, 2021								484.1					10,506.3
March 31, 2021								439.8					1.1
February 28, 2021								235.3					(71.6	)
January 31, 2021								172.0					(80.1	)

Source: Hawaii Department of Business, Economic Development & Tourism

Source: U.S. Bureau of Labor Statistics

Source: University of Hawaii Economic Research Organization (UHERO)

⁴

Source: Honolulu Board of Realtors

⁵

Source: Hawaii Tourism Authority

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Bank of Hawai‘i Corporation Fourth Quarter 2022 Financial Results

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