StockNews.AI
BOH
StockNews.AI
204 days

Bank of Hawai‘i Corporation Fourth Quarter and Full Year 2024 Financial Results

1. BOH's 2024 diluted earnings per share fell to $3.46, down 16.4%. 2. Net income decreased by 12.4% to $150 million for 2024. 3. Net interest income grew by 2.2% in Q4 2024 versus Q3 2024. 4. Return on average common equity declined to 10.85% from 13.89% in 2023. 5. Dividend remains steady at $0.70 per share, indicating stable cash flow.

Earnings
+5.65%Current Return
VS
-0.59%S&P 500
$71.1101/27 06:56 AM EDTEvent Start
$75.1301/28 01:37 PM EDTLatest Updated
88m saved
Insight
Article

FAQ

Why Bearish?

Earnings decline typically signals reduced profitability, impacting investor sentiment.

How important is it?

Earnings news directly affects stock valuation; significant declines can impact future performance expectations.

Why Short Term?

Immediate reactions to earnings reports often influence stock prices quickly.

Related Companies

BOHUSBZION
HONOLULU--(BUSINESS WIRE)--Bank of Hawai‘i Corporation (NYSE: BOH) (the “Company”) today reported diluted earnings per common share of $3.46 for the full year of 2024, compared with $4.14 for the full year of 2023. Net income for the year was $150.0 million, down 12.4% from the previous year. The return on average common equity for the full year of 2024 was 10.85% compared with 13.89% in 2023. “Bank of Hawai‘i finished 2024 with strong financial performance,” said Peter Ho, Chairman and CEO. “In the fourth quarter, our net interest income and net interest margin continued their upward trajectories and average loan balances and average deposit balances grew. During 2024, we strengthened capital levels, controlled core expenses and maintained excellent credit quality.” Diluted earnings per common share was $0.85 for the fourth quarter of 2024, compared with $0.93 during the linked quarter and $0.72 during the same period last year. Net income for the fourth quarter of 2024 was $39.2 million, down 3.0% from the linked quarter and up 28.8% from the same period last year. The return on average common equity for the fourth quarter of 2024 was 10.30% compared with 11.50% during the linked quarter and 9.55% during the same period last year. Financial Highlights Net interest income for the fourth quarter of 2024 was $120.2 million, an increase of 2.2% from the linked quarter and an increase of 3.8% as compared to the same period last year. The increase from the previous quarter was primarily due to higher average balance of our earning assets, slowing of deposit mix shift and repricing and lower funding costs, partially offset by lower earning asset yields. The increase from the same period last year was primarily due to higher earning asset yields and higher average balance of our earning assets, partially offset by higher average balance of interest-bearing deposits. Net interest margin was 2.19% in the fourth quarter of 2024, an increase of 1 basis point from the linked quarter and an increase of 6 basis points from the same period last year. The increase from the linked quarter was primarily due to lower interest-bearing deposits rates, partially offset by lower earning asset yields. The increase from the same period last year was primarily due to higher earning asset yields, partially offset by higher interest-bearing deposit rates. The average yield on loans and leases was 4.73% in the fourth quarter of 2024, down 9 basis points from the linked quarter and up 19 basis points from the same period last year. The average yield on total earning assets was 3.97% in the fourth quarter of 2024, down 9 basis points from the linked quarter and up 12 basis points from the same period last year. The average cost of interest-bearing deposits was 2.37% in the fourth quarter of 2024, down 15 basis points from the linked quarter and up 7 basis points from the same period last year. The average quarterly cost of total deposits, including noninterest-bearing deposits, was 1.77%, down 10 basis points from the linked quarter and up 10 basis points from the same period last year. The changes in yields and rates over the linked quarter reflected the lower rate environment, including lower benchmark interest rates. The changes in yields and rates year over year period reflected repricing of our loans and an elevated deposit mix shift during the period. Noninterest income was $43.0 million in the fourth quarter of 2024, a decrease of 4.6% from the linked quarter and an increase of 1.8% from the same period in 2023. Noninterest income in the fourth quarter of 2024 included a $2.4 million charge incurred in connection with a change in our Visa Class B conversion ratio. Adjusted for this item, noninterest income would have been $45.4 million, an increase of 0.7% from the linked quarter and an increase of 7.5% from the same period in 2023. The increase from the same period last year was primarily due to increases in trust and asset management income, service charges on deposits accounts, and fees, exchange, and other service charges. Noninterest expense was $107.9 million in the fourth quarter of 2024, an increase of 0.8% from the linked quarter and a decrease of 6.9% from the same period last year. Noninterest expense in the fourth quarter of 2023 included an industry-wide FDIC Special Assessment of $14.7 million and $1.7 million of expense savings that were not expected to recur in 2024. Adjusted for these items, noninterest expense in the fourth quarter of 2024 increased by 4.9% from adjusted noninterest expense in the same period last year. The increase was primarily due to higher medical cost in the fourth quarter of 2024 that are not expected to repeat. The effective tax rate for the fourth quarter of 2024 was 24.02% compared with 23.33% during the linked quarter and 23.25% during the same period last year. Asset Quality The Company’s overall asset quality remained strong during the fourth quarter of 2024. Provision for credit losses for the fourth quarter of 2024 was $3.8 million compared with $3.0 million in the linked quarter and $2.5 million in the same period last year. Total non-performing assets were $19.3 million at December 31, 2024, down $0.5 million from September 30, 2024 and up $7.6 million from December 31, 2023. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.14% at the end of the quarter, flat from the linked quarter and an increase of 5 basis points from the same period last year. Net loan and lease charge-offs during the fourth quarter of 2024 were $3.4 million or 10 basis points annualized of total average loans and leases outstanding and comprised of gross charge-offs of $5.2 million partially offset by gross recoveries of $1.8 million. Compared to the linked quarter, net loan and lease charge-offs decreased by $0.4 million or 1 basis point annualized on total average loans and leases outstanding. Compared to the same period last year, net loan and lease charge-offs increased by $1.7 million or 5 basis points annualized on total average loans and leases outstanding. The allowance for credit losses on loans and leases was $148.5 million at December 31, 2024, an increase of $1.2 million from September 30, 2024 and an increase of $2.1 million from December 31, 2023. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.06% at the end of the quarter, flat from the linked quarter and up 1 basis point from the same period last year. Balance Sheet Total assets were $23.6 billion at December 31, 2024, a decrease of 0.8% from September 30, 2024 and a decrease of 0.6% from December 31, 2023. The decrease from the prior periods was primarily due to a decrease in cash and cash equivalents. The investment securities portfolio was $7.3 billion at December 31, 2024, an increase of 0.7% from September 30, 2024 and a decrease of 1.3% from December 31, 2023. This linked quarter increase was primarily due to the purchases of investment securities in the fourth quarter partially offset by cashflows from the portfolio. The decrease from the same period last year was primarily due to cashflows from the portfolio not being reinvested into securities, partially offset by purchases of investment securities in the third and fourth quarters of 2024. The majority of investment purchases during 2024 were in floating rate securities. The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises. Total loans and leases were $14.1 billion at December 31, 2024, an increase of 1.1% from September 30, 2024 and an increase of 0.8% from December 31, 2023. Total commercial loans were $6.1 billion at December 31, 2024, an increase of 3.3% from September 30, 2024 and an increase of 6.0% from December 31, 2023. The increase from the previous periods was primarily due to loan production within our commercial mortgage portfolio. Total consumer loans were $8.0 billion at December 31, 2024, a decrease of 0.5% from the linked quarter and a decrease of 2.9% from the same period last year. The decrease from the linked quarter was primarily due to declines in our home equity and automobile portfolios. The decrease from the same period last year was primarily due to declines in our residential mortgage, home equity and automobile portfolios. Total deposits were $20.6 billion at December 31, 2024, a decrease of 1.6% from September 30, 2024 and a decrease of 2.0% from December 31, 2023. Noninterest-bearing deposits made up 26.3% of total deposit balances at December 31, 2024, up from 25.8% at September 30, 2024 and down from 28.8% at December 31, 2023. Average total deposits were $20.8 billion for the fourth quarter of 2024, up 1.3% from $20.5 billion in the linked quarter and up 0.3% from $20.7 billion in the same period last year. Capital and Dividends The Company’s capital levels remain well above regulatory well-capitalized minimums. The Tier 1 Capital Ratio was 13.95% at December 31, 2024 compared with 14.05% at September 30, 2024 and 12.56% at December 31, 2023. The Tier 1 Leverage Ratio was 8.31% at December 31, 2024, compared with 8.38% at September 30, 2024 and 7.51% at December 31, 2023. The decreases from the linked quarter were due to increases in risk-weighted assets and average total assets partially offset by retained earnings growth. The increases from the same period last year were primarily due to the issuance of $165.0 million of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, at a rate of 8.00% in the second quarter of 2024. No shares of common stock were repurchased under the share repurchase program in the fourth quarter of 2024. Total remaining buyback authority under the share repurchase program was $126.0 million at December 31, 2024. The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on March 14, 2025 to shareholders of record at the close of business on February 28, 2025. On January 6, 2025, the Company announced that the Board of Directors declared a quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, and a quarterly dividend payment of $20.00 per share, equivalent to $0.5000 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B. The depositary shares representing the Series A Preferred Stock and Series B Preferred Stock are traded on the NYSE under the symbol “BOH.PRA” and “BOH.PRB”, respectively. The dividends on the Series A Preferred Stock and Series B Preferred Stock will be payable on February 3, 2025 to shareholders of record of the preferred stock as of the close of business on January 17, 2025. Conference Call Information The Company will review its fourth quarter financial results today at 8:00 a.m. Hawai‘i 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: https://register-conf.media-server.com/register/BI24eacfe4bc38408fa2cf3382f4c7a832. A replay of the conference call will be available for one year beginning at approximately 11:00 a.m. Hawai‘i Time on Monday, January 27, 2025. The replay will be available on the Company's website, www.boh.com. Investor Announcements Investors and others should note that the Company intends to announce financial and other information to the Company’s investors using the Company’s investor relations website at https://ir.boh.com, social media channels, press releases, SEC filings and public conference calls and webcasts, all for purposes of complying with the Company’s disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, as information is updated, and new information is posted. Forward-Looking Statements This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawai‘i Corporation's Annual Report on Form 10-K for the year ended December 31, 2023 and its Form 10-Q for fiscal quarters ended March 31, 2024, June 30, 2024 and September 30, 2024, 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 Hawai‘i and the West Pacific. The Company's principal subsidiary, Bank of Hawai‘i, was founded in 1897. For more information about Bank of Hawai‘i Corporation, see the Company’s website, www.boh.com. Bank of Hawai‘i Corporation is a trade name of Bank of Hawaii Corporation. 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) 2024 2024 2023 2024 2023 For the Period: Operating Results Net Interest Income $ 120,178 $ 117,618 $ 115,785 $ 466,580 $ 497,025 Provision for Credit Losses 3,750 3,000 2,500 11,150 9,000 Total Noninterest Income 43,047 45,110 42,283 172,529 176,609 Total Noninterest Expense 107,931 107,092 115,962 430,108 437,518 Pre-Provision Net Revenue 55,294 55,636 42,106 209,001 236,116 Net Income 39,162 40,358 30,396 149,994 171,202 Net Income Available to Common Shareholders 33,893 36,922 28,427 137,350 163,325 Basic Earnings Per Common Share 0.86 0.94 0.72 3.48 4.16 Diluted Earnings Per Common Share 0.85 0.93 0.72 3.46 4.14 Dividends Declared Per Common Share 0.70 0.70 0.70 2.80 2.80   Performance Ratios Return on Average Assets 0.66 % 0.69 % 0.51 % 0.64 % 0.71 % Return on Average Shareholders' Equity 9.42 9.90 8.86 9.78 12.63 Return on Average Common Equity 10.30 11.50 9.55 10.85 13.89 Efficiency Ratio 1 66.12 65.81 73.36 67.30 64.95 Net Interest Margin 2 2.19 2.18 2.13 2.16 2.24 Dividend Payout Ratio 3 81.40 74.47 97.22 80.46 67.31 Average Shareholders' Equity to Average Assets 6.98 6.95 5.80 6.56 5.66   Average Balances Average Loans and Leases $ 13,964,687 $ 13,809,977 $ 13,906,114 $ 13,868,916 $ 13,851,551 Average Assets 23,682,494 23,338,529 23,449,215 23,362,736 23,954,186 Average Deposits 20,756,682 20,484,391 20,704,070 20,536,239 20,412,378 Average Shareholders' Equity 1,654,156 1,621,936 1,360,641 1,533,243 1,355,536   Per Share of Common Stock Book Value $ 33.27 $ 33.22 $ 31.05 $ 33.27 $ 31.05 Tangible Book Value 32.47 32.43 30.25 32.47 30.25 Market Value Closing 71.24 62.77 72.46 71.24 72.46 High 82.70 70.44 75.19 82.70 81.73 Low 60.58 55.75 45.56 54.50 30.83   December 31, September 30, December 31, 2024 2024 2023 As of Period End: Balance Sheet Totals Loans and Leases $ 14,075,980 $ 13,918,583 $ 13,965,026 Total Assets 23,601,114 23,799,174 23,733,296 Total Deposits 20,633,037 20,978,322 21,055,045 Other Debt 558,274 558,297 560,190 Total Shareholders' Equity 1,667,774 1,665,474 1,414,242   Asset Quality Non-Performing Assets $ 19,300 $ 19,781 $ 11,747 Allowance for Credit Losses - Loans and Leases 148,528 147,331 146,403 Allowance to Loans and Leases Outstanding 4 1.06 % 1.06 % 1.05 %   Capital Ratios 5 Common Equity Tier 1 Capital Ratio 11.59 % 11.66 % 11.33 % Tier 1 Capital Ratio 13.95 14.05 12.56 Total Capital Ratio 15.00 15.11 13.60 Tier 1 Leverage Ratio 8.31 8.38 7.51 Total Shareholders' Equity to Total Assets 7.07 7.00 5.96 Tangible Common Equity to Tangible Assets 6 5.48 5.42 5.07 Tangible Common Equity to Risk-Weighted Assets 6 9.08 9.17 8.45   Non-Financial Data Full-Time Equivalent Employees 1,865 1,854 1,899 Branches 50 50 51 ATMs 317 317 318 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, 2024 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) 2024 2024 2023   Total Shareholders' Equity $ 1,667,774 $ 1,665,474 $ 1,414,242 Less: Preferred Stock 345,000 345,000 180,000 Goodwill 31,517 31,517 31,517 Tangible Common Equity $ 1,291,257 $ 1,288,957 $ 1,202,725   Total Assets $ 23,601,114 $ 23,799,174 $ 23,733,296 Less: Goodwill 31,517 31,517 31,517 Tangible Assets $ 23,569,597 $ 23,767,657 $ 23,701,779   Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements 1 $ 14,225,908 $ 14,054,698 $ 14,226,780   Total Shareholders' Equity to Total Assets 7.07 % 7.00 % 5.96 % Tangible Common Equity to Tangible Assets (Non-GAAP) 5.48 % 5.42 % 5.07 %   Tier 1 Capital Ratio 1 13.95 % 14.05 % 12.56 % Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1 9.08 % 9.17 % 8.45 % 1 Regulatory capital ratios as of December 31, 2024 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) 2024 2024 2023 2024 2023 Interest Income Interest and Fees on Loans and Leases $ 164,785 $ 166,286 $ 158,324 $ 653,615 $ 590,611 Income on Investment Securities Available-for-Sale 23,223 23,257 22,782 89,705 93,528 Held-to-Maturity 20,677 21,107 22,589 85,515 92,750 Cash and Cash Equivalents 9,425 8,980 5,728 30,701 28,380 Other 1,107 1,018 924 4,215 5,106 Total Interest Income 219,217 220,648 210,347 863,751 810,375 Interest Expense Deposits 92,099 96,067 87,121 368,764 250,847 Securities Sold Under Agreements to Repurchase 992 993 1,459 4,608 16,306 Funds Purchased - - - 44 888 Short-Term Borrowings - - - - 5,713 Other Debt 5,948 5,970 5,982 23,755 39,596 Total Interest Expense 99,039 103,030 94,562 397,171 313,350 Net Interest Income 120,178 117,618 115,785 466,580 497,025 Provision for Credit Losses 3,750 3,000 2,500 11,150 9,000 Net Interest Income After Provision for Credit Losses 116,428 114,618 113,285 455,430 488,025 Noninterest Income Fees, Exchange, and Other Service Charges 14,399 14,945 13,774 57,236 55,556 Trust and Asset Management 12,157 11,916 11,144 47,485 43,597 Service Charges on Deposit Accounts 8,678 8,075 7,949 32,430 31,116 Bank-Owned Life Insurance 3,283 3,533 3,176 13,568 11,643 Annuity and Insurance 1,347 1,460 1,271 5,436 4,736 Mortgage Banking 942 1,188 1,016 4,109 4,255 Investment Securities Losses, Net (3,306 ) (1,103 ) (1,619 ) (7,507 ) (11,455 ) Other 5,547 5,096 5,572 19,772 37,161 Total Noninterest Income 43,047 45,110 42,283 172,529 176,609 Noninterest Expense Salaries and Benefits 58,690 58,626 53,991 232,564 234,079 Net Equipment 10,308 10,120 9,826 40,886 40,251 Net Occupancy 10,263 10,806 9,734 42,084 39,924 Data Processing 5,313 4,712 4,948 19,540 18,836 Professional Fees 4,988 4,725 5,079 19,319 17,459 FDIC Insurance 3,711 3,355 18,545 17,850 28,313 Other 14,658 14,748 13,839 57,865 58,656 Total Noninterest Expense 107,931 107,092 115,962 430,108 437,518 Income Before Provision for Income Taxes 51,544 52,636 39,606 197,851 227,116 Provision for Income Taxes 12,382 12,278 9,210 47,857 55,914 Net Income $ 39,162 $ 40,358 $ 30,396 $ 149,994 $ 171,202 Preferred Stock Dividends 5,269 3,436 1,969 12,644 7,877 Net Income Available to Common Shareholders $ 33,893 $ 36,922 $ 28,427 $ 137,350 $ 163,325 Basic Earnings Per Common Share $ 0.86 $ 0.94 $ 0.72 $ 3.48 $ 4.16 Diluted Earnings Per Common Share $ 0.85 $ 0.93 $ 0.72 $ 3.46 $ 4.14 Dividends Declared Per Common Share $ 0.70 $ 0.70 $ 0.70 $ 2.80 $ 2.80 Basic Weighted Average Common Shares 39,513,210 39,488,187 39,303,525 39,450,737 39,274,291 Diluted Weighted Average Common Shares 39,836,758 39,736,492 39,539,191 39,700,388 39,428,912   Bank of Hawai‘i 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) 2024 2024 2023 2024 2023 Net Income $ 39,162 $ 40,358 $ 30,396 $ 149,994 $ 171,202 Other Comprehensive Income (Loss), Net of Tax: Net Unrealized Gains (Losses) on Investment Securities (7,388 ) 38,833 43,357 53,435 36,152 Defined Benefit Plans (641 ) 168 1,566 (136 ) 1,818 Other Comprehensive Income (Loss) (8,029 ) 39,001 44,923 53,299 37,970 Comprehensive Income $ 31,133 $ 79,359 $ 75,319 $ 203,293 $ 209,172   Bank of Hawai‘i Corporation and Subsidiaries Consolidated Statements of Condition Table 5 December 31, September 30, December 31, (dollars in thousands, except per share amounts) 2024 2024 2023 Assets Cash and Cash Equivalents $ 763,571 $ 1,272,763 $ 1,000,944 Investment Securities Available-for-Sale 2,689,528 2,550,324 2,408,933 Held-to-Maturity (Fair Value of $3,820,882; $4,072,596; and $4,253,637) 4,618,543 4,710,245 4,997,335 Loans Held for Sale 2,150 5,048 3,124 Loans and Leases 14,075,980 13,918,583 13,965,026 Allowance for Credit Losses (148,528 ) (147,331 ) (146,403 ) Net Loans and Leases 13,927,452 13,771,252 13,818,623 Premises and Equipment, Net 184,480 191,899 194,855 Operating Lease Right-of-Use Assets 80,165 81,736 86,110 Accrued Interest Receivable 66,367 66,534 66,525 Mortgage Servicing Rights 19,199 19,571 20,880 Goodwill 31,517 31,517 31,517 Bank-Owned Life Insurance 481,184 475,263 462,894 Other Assets 736,958 623,022 641,556 Total Assets $ 23,601,114 $ 23,799,174 $ 23,733,296   Liabilities Deposits Noninterest-Bearing Demand $ 5,423,562 $ 5,412,048 $ 6,058,554 Interest-Bearing Demand 3,784,984 3,734,601 3,749,717 Savings 8,364,916 8,663,147 8,189,472 Time 3,059,575 3,168,526 3,057,302 Total Deposits 20,633,037 20,978,322 21,055,045 Securities Sold Under Agreements to Repurchase 100,000 100,490 150,490 Other Debt 558,274 558,297 560,190 Operating Lease Liabilities 88,794 90,356 94,693 Retirement Benefits Payable 23,760 22,870 23,673 Accrued Interest Payable 34,799 40,434 41,023 Other Liabilities 494,676 342,931 393,940 Total Liabilities 21,933,340 22,133,700 22,319,054 Shareholders' Equity Preferred Stock (Series A, $.01 par value; authorized 180,000 shares issued and outstanding) 180,000 180,000 180,000 Preferred Stock (Series B, $.01 par value; authorized 165,000 shares issued and outstanding) 165,000 165,000 - Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: December 31, 2024 - 58,765,864 / 39,762,255; September 30, 2024 - 58,765,907 / 39,748,304; and December 31, 2023 - 58,755,465 / 39,753,138) 585 585 583 Capital Surplus 647,403 643,620 636,422 Accumulated Other Comprehensive Loss (343,389 ) (335,360 ) (396,688 ) Retained Earnings 2,133,838 2,127,585 2,107,569 Treasury Stock, at Cost (Shares: December 31, 2024 - 19,003,609; September 30, 2024 - 19,017,603; and December 31, 2023 - 19,002,327) (1,115,663 ) (1,115,956 ) (1,113,644 ) Total Shareholders' Equity 1,667,774 1,665,474 1,414,242 Total Liabilities and Shareholders' Equity $ 23,601,114 $ 23,799,174 $ 23,733,296 Bank of Hawai‘i Corporation and Subsidiaries Consolidated Statements of Shareholders' Equity Table 6 Accumulated Preferred Preferred Other Shares Preferred Shares Preferred Common Comprehensive Series A Series A Series B Series B Shares Common Capital Income Retained Treasury (dollars in thousands, except per share amounts) Outstanding Stock Outstanding Stock Outstanding Stock Surplus (Loss) Earnings Stock Total Balance as of December 31, 2022 180,000 $ 180,000 - $ - 39,835,750 $ 582 $ 620,578 $ (434,658 ) $ 2,055,912 $ (1,105,419 ) $ 1,316,995 Net Income - - - - - - - - 171,202 - 171,202 Other Comprehensive Income - - - - - - - 37,970 - - 37,970 Share-Based Compensation - - - - - - 15,656 - - - 15,656 Common Stock Issued under Purchase and Equity Compensation Plans - - - - 130,286 1 188 - 127 6,065 6,381 Common Stock Repurchased - - - - (212,898 ) - - - - (14,290 ) (14,290 ) Cash Dividends Declared Common Stock ($2.80 per share) - - - - - - - - (111,795 ) - (111,795 ) Cash Dividends Declared Preferred Stock - - - - - - - - (7,877 ) - (7,877 ) Balance as of December 31, 2023 180,000 $ 180,000 - $ - 39,753,138 $ 583 $ 636,422 $ (396,688 ) $ 2,107,569 $ (1,113,644 ) $ 1,414,242   Net Income - $ - - $ - - $ - $ - $ - $ 149,994 $ - $ 149,994 Other Comprehensive Income - - - - - - - 53,299 - - 53,299 Share-Based Compensation - - - - - - 14,444 - - - 14,444 Preferred Stock Issued, Net - - 165,000 165,000 - - (4,386 ) - - - 160,614 Common Stock Issued under Purchase and Equity Compensation Plans - - - - 96,394 2 923 - 1,232 3,283 5,440 Common Stock Repurchased - - - - (87,277 ) - - - - (5,302 ) (5,302 ) Cash Dividends Declared Common Stock ($2.80 per share) - - - - - - - - (112,313 ) - (112,313 ) Cash Dividends Declared Preferred Stock - - - - - - - - (12,644 ) - (12,644 ) Balance as of December 31, 2024 180,000 $ 180,000 165,000 $ 165,000 39,762,255 $ 585 $ 647,403 $ (343,389 ) $ 2,133,838 $ (1,115,663 ) $ 1,667,774   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, 2024 September 30, 2024 December 31, 2023 Average Income / Yield / Average Income / Yield / Average Income / Yield / (dollars in millions) Balance Expense 2 Rate Balance Expense 2 Rate Balance Expense 2 Rate Earning Assets Cash and Cash Equivalents $ 784.9 $ 9.4 4.70 % $ 667.8 $ 9.0 5.26 % $ 419.3 $ 5.7 5.35 % Investment Securities Available-for-Sale Taxable 2,614.5 23.0 3.50 2,430.0 23.0 3.80 2,362.4 22.8 3.84 Non-Taxable 21.5 0.3 6.39 11.8 0.2 6.63 1.8 0.0 1.90 Held-to-Maturity Taxable 4,636.7 20.5 1.77 4,735.5 21.0 1.77 5,013.6 22.4 1.79 Non-Taxable 34.3 0.2 2.10 34.4 0.2 2.10 34.9 0.2 2.10 Total Investment Securities 7,307.0 44.0 2.41 7,211.7 44.4 2.46 7,412.7 45.4 2.45 Loans Held for Sale 4.0 0.1 5.86 3.8 0.1 6.13 3.8 0.1 6.89 Loans and Leases 3 Commercial Mortgage 3,868.7 52.0 5.34 3,744.6 52.0 5.51 3,760.1 51.5 5.42 Commercial and Industrial 1,697.9 22.1 5.18 1,665.3 22.6 5.42 1,615.4 21.3 5.24 Construction 346.6 6.6 7.54 357.3 7.1 7.95 279.5 4.8 6.84 Commercial Lease Financing 82.9 0.7 3.62 59.6 0.4 2.58 60.1 0.3 1.95 Residential Mortgage 4,621.0 45.3 3.93 4,593.7 46.4 4.03 4,676.0 45.1 3.86 Home Equity 2,181.6 22.5 4.10 2,206.9 22.4 4.04 2,276.2 20.9 3.65 Automobile 774.4 9.5 4.90 795.7 9.4 4.72 845.7 8.6 4.02 Other 391.6 7.2 7.29 386.9 6.9 7.13 393.1 6.3 6.40 Total Loans and Leases 13,964.7 165.9 4.73 13,810.0 167.2 4.82 13,906.1 158.8 4.54 Other 65.0 1.1 6.82 63.2 0.9 6.43 60.0 1.0 6.16 Total Earning Assets 22,125.6 220.5 3.97 21,756.5 221.7 4.06 21,801.9 211.0 3.85 Non-Earning Assets 1,556.9 1,582.0 1,647.3 Total Assets $ 23,682.5 $ 23,338.5 $ 23,449.2   Interest-Bearing Liabilities Interest-Bearing Deposits Demand $ 3,655.8 7.8 0.85 $ 3,775.6 8.9 0.94 $ 3,737.3 7.7 0.82 Savings 8,652.2 52.6 2.42 8,402.9 55.7 2.63 8,441.0 51.1 2.40 Time 3,142.8 31.7 4.02 3,008.7 31.5 4.17 2,830.0 28.3 3.97 Total Interest-Bearing Deposits 15,450.8 92.1 2.37 15,187.2 96.1 2.52 15,008.3 87.1 2.30 Securities Sold Under Agreements to Repurchase 100.2 1.0 3.87 100.5 1.0 3.87 150.5 1.5 3.79 Other Debt 558.3 5.9 4.24 560.1 5.9 4.24 560.2 6.0 4.24 Total Interest-Bearing Liabilities 16,109.3 99.0 2.45 15,847.8 103.0 2.59 15,719.0 94.6 2.39 Net Interest Income $ 121.5 $ 118.7 $ 116.4 Interest Rate Spread 1.52 % 1.47 % 1.46 % Net Interest Margin 2.19 % 2.18 % 2.13 % Noninterest-Bearing Demand Deposits 5,305.9 5,297.2 5,695.8 Other Liabilities 613.1 571.6 673.8 Shareholders' Equity 1,654.2 1,621.9 1,360.6 Total Liabilities and Shareholders' Equity $ 23,682.5 $ 23,338.5 $ 23,449.2 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 $1.3 million, $1.0 million, and $605 thousand for the three months ended Dec ember 31, 2024, September 30, 2024, and December 31, 2023, respectively. 3 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.   Bank of Hawai‘i Corporation and Subsidiaries Average Balances and Interest Rates - Taxable-Equivalent Basis 1 Table 7b Year Ended Year Ended December 31, 2024 December 31, 2023 Average Income / Yield / Average Income / Yield / (dollars in millions) Balance Expense 2 Rate Balance Expense 2 Rate Earning Assets Cash and Cash Equivalents $ 594.1 $ 30.7 5.17 % $ 543.9 $ 28.4 5.22 % Investment Securities Available-for-Sale Taxable 2,433.8 89.3 3.67 2,631.0 93.4 3.55 Non-Taxable 9.2 0.6 6.05 6.1 0.2 4.06 Held-to-Maturity Taxable 4,783.5 84.9 1.78 5,173.9 92.2 1.78 Non-Taxable 34.5 0.7 2.10 35.1 0.7 2.10 Total Investment Securities 7,261.0 175.5 2.42 7,846.1 186.5 2.38 Loans Held for Sale 2.9 0.2 6.05 3.0 0.2 6.16 Loans and Leases 3 Commercial Mortgage 3,763.6 205.9 5.47 3,776.2 197.0 5.22 Commercial and Industrial 1,679.8 89.2 5.31 1,511.2 74.2 4.91 Construction 333.4 25.6 7.66 262.1 16.0 6.09 Commercial Lease Financing 65.1 1.7 2.68 63.7 0.8 1.30 Residential Mortgage 4,614.8 182.4 3.95 4,690.5 168.9 3.60 Home Equity 2,217.5 87.8 3.96 2,268.0 78.2 3.45 Automobile 803.6 37.0 4.61 866.1 31.8 3.67 Other 391.1 27.4 7.01 413.8 25.3 6.12 Total Loans and Leases 13,868.9 657.0 4.74 13,851.6 592.2 4.28 Other 63.2 4.2 6.66 78.3 5.1 6.51 Total Earning Assets 21,790.1 867.6 3.98 22,322.9 812.4 3.64 Non-Earning Assets 1,572.6 1,631.3 Total Assets $ 23,362.7 $ 23,954.2   Interest-Bearing Liabilities Interest-Bearing Deposits Demand $ 3,745.9 33.2 0.89 $ 3,978.7 27.0 0.68 Savings 8,362.3 209.7 2.51 8,018.4 137.4 1.71 Time 3,042.3 125.9 4.14 2,424.8 86.4 3.56 Total Interest-Bearing Deposits 15,150.5 368.8 2.43 14,421.9 250.8 1.74 Funds Purchased 0.8 0.0 5.46 18.5 0.9 4.79 Short-Term Borrowings 0.0 0.0 5.25 114.0 5.7 5.01 Securities Sold Under Agreements to Repurchase 118.2 4.6 3.90 530.9 16.3 3.07 Other Debt 559.6 23.8 4.24 921.8 39.7 4.30 Total Interest-Bearing Liabilities 15,829.1 397.2 2.51 16,007.1 313.4 1.96 Net Interest Income $ 470.4 $ 499.0 Interest Rate Spread 1.47 % 1.68 % Net Interest Margin 2.16 % 2.24 % Noninterest-Bearing Demand Deposits 5,385.8 5,990.5 Other Liabilities 614.6 601.1 Shareholders' Equity 1,533.2 1,355.5 Total Liabilities and Shareholders' Equity $ 23,362.7 $ 23,954.2 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 $3.8 million and $2.0 million for the year ended December 31, 2024 and December 31, 2023, respectively. 3 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.   Bank of Hawai‘i Corporation and Subsidiaries Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8a Three Months Ended December 31, 2024 Compared to September 30, 2024 (dollars in millions) Volume 1 Rate 1 Total Change in Interest Income: Cash and Cash Equivalents $ 1.5 $ (1.0 ) $ 0.4 Investment Securities Available-for-Sale Taxable 1.8 (1.7 ) 0.0 Non-Taxable 0.2 (0.0 ) 0.1 Held-to-Maturity Taxable (0.5 ) 0.0 (0.5 ) Non-Taxable (0.1 ) (0.0 ) (0.1 ) Total Investment Securities 1.3 (1.7 ) (0.4 ) Loans Held for Sale 0.0 (0.0 ) (0.0 ) Loans and Leases Commercial Mortgage 1.7 (1.7 ) (0.0 ) Commercial and Industrial 0.6 (1.0 ) (0.5 ) Construction (0.2 ) (0.3 ) (0.5 ) Commercial Lease Financing 0.2 0.1 0.3 Residential Mortgage 0.3 (1.3 ) (1.1 ) Home Equity (0.3 ) 0.4 0.1 Automobile (0.3 ) 0.4 0.1 Other 0.1 0.2 0.2 Total Loans and Leases 2.1 (3.4 ) (1.3 ) Other 0.0 0.1 0.1 Total Change in Interest Income 4.9 (6.1 ) (1.2 )   Change in Interest Expense: Interest-Bearing Deposits Demand (0.3 ) (0.8 ) (1.1 ) Savings 1.6 (4.7 ) (3.1 ) Time 1.4 (1.2 ) 0.2 Total Interest-Bearing Deposits 2.7 (6.7 ) (4.0 ) Securities Sold Under Agreements to Repurchase (0.0 ) 0.0 (0.0 ) Other Debt (0.0 ) (0.0 ) (0.0 ) Total Change in Interest Expense 2.7 (6.7 ) (4.0 )   Change in Net Interest Income $ 2.2 $ 0.6 $ 2.8 1 The change in interest income and expense due to both volume and rate has been allocated between the factors in proportion to the relationship of the absolute dollar amounts of the change in each.   Bank of Hawai‘i Corporation and Subsidiaries Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8b Three Months Ended December 31, 2024 Compared to December 31, 2023 (dollars in millions) Volume 1 Rate 1 Total Change in Interest Income: Cash and Cash Equivalents $ 4.5 $ (0.8 ) $ 3.7 Investment Securities Available-for-Sale Taxable 2.3 (2.1 ) 0.2 Non-Taxable 0.3 - 0.3 Held-to-Maturity Taxable (1.7 ) (0.2 ) (1.9 ) Non-Taxable (0.0 ) (0.0 ) (0.0 ) Total Investment Securities 0.9 (2.3 ) (1.4 ) Loans Held for Sale 0.0 (0.0 ) (0.0 ) Loans and Leases Commercial Mortgage 1.4 (0.9 ) 0.5 Commercial and Industrial 1.1 (0.3 ) 0.8 Construction 1.2 0.6 1.8 Commercial Lease Financing 0.3 0.1 0.4 Residential Mortgage (0.6 ) 0.8 0.2 Home Equity (0.9 ) 2.5 1.6 Automobile (0.8 ) 1.7 0.9 Other - 0.9 0.9 Total Loans and Leases 1.7 5.4 7.1 Other 0.1 0.1 0.2 Total Change in Interest Income 7.1 2.4 9.5   Change in Interest Expense: Interest-Bearing Deposits Demand (0.2 ) 0.3 0.1 Savings 1.2 0.3 1.5 Time 3.1 0.3 3.4 Total Interest-Bearing Deposits 4.1 0.9 5.0 Securities Sold Under Agreements to Repurchase (0.5 ) - (0.5 ) Other Debt (0.1 ) - (0.1 ) Total Change in Interest Expense 3.5 0.9 4.4   Change in Net Interest Income $ 3.6 $ 1.5 $ 5.1 1 The change in interest income and expense due to both volume and rate has been allocated between the factors in proportion to the relationship of the absolute dollar amounts of the change in each.   Bank of Hawai‘i Corporation and Subsidiaries Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 8c Year Ended December 31, 2024 Compared to December 31, 2023 (dollars in millions) Volume 1 Rate 1 Total Change in Interest Income: Cash and Cash Equivalents $ 2.6 $ (0.3 ) $ 2.3 Investment Securities Available-for-Sale Taxable (7.2 ) 3.1 (4.1 ) Non-Taxable 0.2 0.2 0.4 Held-to-Maturity Taxable (6.9 ) (0.4 ) (7.3 ) Non-Taxable (0.0 ) - (0.0 ) Total Investment Securities (13.9 ) 2.9 (11.0 ) Loans Held for Sale (0.0 ) (0.0 ) (0.0 ) Loans and Leases Commercial Mortgage (0.6 ) 9.5 8.9 Commercial and Industrial 8.9 6.1 15.0 Construction 4.9 4.7 9.6 Commercial Lease Financing 0.2 0.7 0.9 Residential Mortgage (2.7 ) 16.2 13.5 Home Equity (1.8 ) 11.4 9.6 Automobile (2.5 ) 7.7 5.2 Other (1.4 ) 3.5 2.1 Total Loans and Leases 5.0 59.8 64.8 Other (1.0 ) 0.1 (0.9 ) Total Change in Interest Income (7.3 ) 62.5 55.2   Change in Interest Expense: Interest-Bearing Deposits Demand (1.7 ) 7.9 6.2 Savings 6.2 66.1 72.3 Time 24.2 15.3 39.5 Total Interest-Bearing Deposits 28.7 89.3 118.0 Funds Purchased (1.0 ) 0.1 (0.9 ) Short-Term Borrowings (6.0 ) 0.3 (5.7 ) Securities Sold Under Agreements to Repurchase (15.2 ) 3.5 (11.7 ) Other Debt (15.4 ) (0.5 ) (15.9 ) Total Change in Interest Expense (8.9 ) 92.7 83.8   Change in Net Interest Income $ 1.6 $ (30.2 ) $ (28.6 ) 1 The change in interest income and expense due to both volume and rate has been allocated between the factors in proportion to the relationship of the absolute dollar amounts of the change in each.   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) 2024 2024 2023 2024 2023 Salaries $ 38,852 $ 38,993 $ 38,492 $ 154,538 $ 154,497 Medical, Dental, and Life Insurance 4,965 3,512 2,500 14,900 12,767 Incentive Compensation 4,423 5,086 3,402 15,708 13,339 Retirement and Other Benefits 3,456 3,692 2,521 15,408 15,707 Share-Based Compensation 3,208 3,364 3,443 13,667 14,770 Payroll Taxes 2,593 2,839 2,598 13,232 14,677 Commission Expense 1,085 979 700 3,575 2,798 Separation Expense 108 161 335 1,536 5,524 Total Salaries and Benefits $ 58,690 $ 58,626 $ 53,991 $ 232,564 $ 234,079   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) 2024 2024 2024 2024 2023 Commercial Commercial Mortgage $ 4,020,622 $ 3,868,566 $ 3,741,140 $ 3,715,032 $ 3,749,016 Commercial and Industrial 1,705,133 1,681,693 1,699,438 1,679,659 1,664,068 Construction 308,898 319,150 315,571 323,069 304,463 Lease Financing 90,756 60,665 59,388 57,817 59,939 Total Commercial 6,125,409 5,930,074 5,815,537 5,775,577 5,777,486 Consumer Residential Mortgage 4,628,283 4,622,677 4,595,586 4,616,900 4,684,171 Home Equity 2,165,514 2,195,844 2,221,073 2,240,946 2,264,827 Automobile 764,146 786,910 806,240 825,854 837,830 Other 392,628 383,078 392,830 394,560 400,712 Total Consumer 7,950,571 7,988,509 8,015,729 8,078,260 8,187,540 Total Loans and Leases $ 14,075,980 $ 13,918,583 $ 13,831,266 $ 13,853,837 $ 13,965,026     Deposits December 31, September 30, June 30, March 31, December 31, (dollars in thousands) 2024 2024 2024 2024 2023 Consumer $ 10,397,777 $ 10,340,466 $ 10,382,432 $ 10,429,004 $ 10,319,809 Commercial 8,299,590 8,356,239 7,995,618 8,323,330 8,601,224 Public and Other 1,935,670 2,281,617 2,030,452 1,924,252 2,134,012 Total Deposits $ 20,633,037 $ 20,978,322 $ 20,408,502 $ 20,676,586 $ 21,055,045     Average Deposits Three Months Ended December 31, September 30, June 30, March 31, December 31, (dollars in thousands) 2024 2024 2024 2024 2023 Consumer $ 10,327,928 $ 10,345,772 $ 10,379,724 $ 10,313,730 $ 10,092,727 Commercial 8,564,213 8,207,310 8,188,685 8,334,540 8,581,426 Public and Other 1,864,541 1,931,309 1,789,984 1,895,370 2,029,917 Total Deposits $ 20,756,682 $ 20,484,391 $ 20,358,393 $ 20,543,640 $ 20,704,070   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) 2024 2024 2024 2024 2023 Non-Performing Assets Non-Accrual Loans and Leases Commercial Commercial and Industrial $ 4,627 $ 6,218 $ 3,681 $ 13 $ 39 Commercial Mortgage 2,450 2,680 2,601 2,714 2,884 Total Commercial 7,077 8,898 6,282 2,727 2,923 Consumer Residential Mortgage 5,052 4,269 2,998 3,199 2,935 Home Equity 4,514 3,947 3,227 3,240 3,791 Total Consumer 9,566 8,216 6,225 6,439 6,726 Total Non-Accrual Loans and Leases 16,643 17,114 12,507 9,166 9,649 Foreclosed Real Estate 2,657 2,667 2,672 2,672 2,098 Total Non-Performing Assets $ 19,300 $ 19,781 $ 15,179 $ 11,838 $ 11,747   Accruing Loans and Leases Past Due 90 Days or More Consumer Residential Mortgage $ 3,984 $ 4,421 $ 4,524 $ 3,378 $ 3,814 Home Equity 2,845 1,980 2,025 1,580 1,734 Automobile 776 580 568 517 399 Other 677 554 733 872 648 Total Consumer 8,282 7,535 7,850 6,347 6,595 Total Accruing Loans and Leases Past Due 90 Days or More $ 8,282 $ 7,535 $ 7,850 $ 6,347 $ 6,595 Total Loans and Leases $ 14,075,980 $ 13,918,583 $ 13,831,266 $ 13,853,837 $ 13,965,026   Ratio of Non-Accrual Loans and Leases to Total Loans and Leases 0.12 % 0.12 % 0.09 % 0.07 % 0.07 %   Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate 0.14 % 0.14 % 0.11 % 0.09 % 0.08 %   Ratio of Non-Performing Assets to Total Assets 0.08 % 0.08 % 0.07 % 0.05 % 0.05 %   Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate 0.12 % 0.15 % 0.11 % 0.05 % 0.05 %   Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate 0.15 % 0.14 % 0.11 % 0.11 % 0.11 %   Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases and Foreclosed Real Estate 0.20 % 0.20 % 0.17 % 0.13 % 0.13 %   Quarter to Quarter Changes in Non-Performing Assets Balance at Beginning of Quarter $ 19,781 $ 15,179 $ 11,838 $ 11,747 $ 11,519 Additions 2,198 5,557 5,257 1,652 2,683 Reductions Payments (708 ) (734 ) (844 ) (921 ) (2,018 ) Return to Accrual Status (476 ) (81 ) (1,018 ) (617 ) (437 ) Charge-offs / Write-downs (1,495 ) (140 ) (54 ) (23 ) - Total Reductions (2,679 ) (955 ) (1,916 ) (1,561 ) (2,455 ) Balance at End of Quarter $ 19,300 $ 19,781 $ 15,179 $ 11,838 $ 11,747   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) 2024 2024 2023 2024 2023 Balance at Beginning of Period $ 150,325 $ 151,155 $ 151,653 $ 152,429 $ 151,247   Loans and Leases Charged-Off Commercial Commercial and Industrial (352 ) (1,021 ) (229 ) (2,608 ) (987 ) Consumer Residential Mortgage (337 ) - - (385 ) (6 ) Home Equity (339 ) (125 ) (14 ) (701 ) (82 ) Automobile (1,548 ) (1,651 ) (938 ) (5,342 ) (5,247 ) Other (2,637 ) (2,539 ) (2,349 ) (10,098 ) (8,645 ) Total Loans and Leases Charged-Off (5,213 ) (5,336 ) (3,530 ) (19,134 ) (14,967 ) Recoveries on Loans and Leases Previously Charged-Off Commercial Commercial and Industrial 386 66 125 831 350 Consumer Residential Mortgage 150 48 301 303 489 Home Equity 177 318 180 792 1,073 Automobile 609 552 612 2,168 2,782 Other 465 522 588 2,110 2,455 Total Recoveries on Loans and Leases Previously Charged-Off 1,787 1,506 1,806 6,204 7,149 Net Charged-Off Loans and Leases (3,426 ) (3,830 ) (1,724 ) (12,930 ) (7,818 ) Provision for Credit Losses: Loans and Leases 4,623 3,684 2,864 15,055 9,782 Unfunded Commitments (873 ) (684 ) (364 ) (3,905 ) (782 ) Total Provision for Credit Losses 3,750 3,000 2,500 11,150 9,000 Balance at End of Period $ 150,649 $ 150,325 $ 152,429 $ 150,649 $ 152,429   Components Allowance for Credit Losses - Loans and Leases $ 148,528 $ 147,331 $ 146,403 $ 148,528 $ 146,403 Reserve for Unfunded Commitments 2,121 2,994 6,026 2,121 6,026 Total Reserve for Credit Losses $ 150,649 $ 150,325 $ 152,429 $ 150,649 $ 152,429   Average Loans and Leases Outstanding $ 13,964,687 $ 13,809,977 $ 13,906,114 $ 13,868,916 $ 13,851,551   Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized) 0.10 % 0.11 % 0.05 % 0.09 % 0.06 % Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 1 1.06 % 1.06 % 1.05 % 1.06 % 1.05 % 1 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, 2024 Net Interest Income (Expense) $ 98,019 $ 53,516 $ (31,357 ) $ 120,178 Provision for (Recapture of) Credit Losses 3,751 (326 ) 325 3,750 Net Interest Income (Expense) After Provision for Credit Losses 94,268 53,842 (31,682 ) 116,428 Noninterest Income 34,800 7,490 757 43,047 Noninterest Expense 85,516 18,874 3,541 107,931 Income (Loss) Before Income Taxes 43,552 42,458 (34,466 ) 51,544 Provision (Benefit) for Income Taxes 11,136 10,819 (9,573 ) 12,382 Net Income (Loss) $ 32,416 $ 31,639 $ (24,893 ) $ 39,162 Total Assets as of December 31, 2024 $ 8,288,997 $ 6,145,162 $ 9,166,955 $ 23,601,114   Three Months December 31, 2023 1 Net Interest Income (Expense) $ 99,629 $ 49,572 $ (33,416 ) $ 115,785 Provision for (Recapture of) Credit Losses 1,738 (15 ) 777 2,500 Net Interest Income (Expense) After Provision for Credit Losses 97,891 49,587 (34,193 ) 113,285 Noninterest Income 32,247 7,944 2,092 42,283 Noninterest Expense 92,793 18,958 4,211 115,962 Income (Loss) Before Income Taxes 37,345 38,573 (36,312 ) 39,606 Provision (Benefit) for Income Taxes 9,575 9,764 (10,129 ) 9,210 Net Income (Loss) $ 27,770 $ 28,809 $ (26,183 ) $ 30,396 Total Assets as of December 31, 2023 $ 8,486,771 $ 5,831,880 $ 9,414,645 $ 23,733,296 1 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, 2024 Net Interest Income (Expense) $ 391,137 $ 206,450 $ (131,007 ) $ 466,580 Provision for (Recapture of) Credit Losses 11,969 913 (1,732 ) 11,150 Net Interest Income (Expense) After Provision for Credit Losses 379,168 205,537 (129,275 ) 455,430 Noninterest Income 134,568 28,768 9,193 172,529 Noninterest Expense 339,944 74,352 15,812 430,108 Income (Loss) Before Income Taxes 173,792 159,953 (135,894 ) 197,851 Provision (Benefit) for Income Taxes 44,290 40,530 (36,963 ) 47,857 Net Income (Loss) $ 129,502 $ 119,423 $ (98,931 ) $ 149,994 Total Assets as of December 31, 2024 $ 8,288,997 $ 6,145,162 $ 9,166,955 $ 23,601,114   Year Ended December 31, 2023 1 Net Interest Income (Expense) $ 393,310 $ 209,436 $ (105,721 ) $ 497,025 Provision for (Recapture of) Credit Losses 7,773 44 1,183 9,000 Net Interest Income (Expense) After Provision for Credit Losses 385,537 209,392 (106,904 ) 488,025 Noninterest Income 126,373 33,016 17,220 176,609 Noninterest Expense 340,336 77,486 19,696 437,518 Income (Loss) Before Income Taxes 171,574 164,922 (109,380 ) 227,116 Provision (Benefit) for Income Taxes 44,141 41,109 (29,336 ) 55,914 Net Income (Loss) $ 127,433 $ 123,813 $ (80,044 ) $ 171,202 Total Assets as of December 31, 2023 $ 8,486,771 $ 5,831,880 $ 9,414,645 $ 23,733,296 1 Certain prior period information has been reclassified to conform to current presentation.   Bank of Hawai‘i Corporation and Subsidiaries Selected Quarterly Financial Data Table 14 Three Months Ended December 31, September 30, June 30, March 31, December 31, (dollars in thousands, except per share amounts) 2024 2024 2024 2024 2023 Quarterly Operating Results Interest Income Interest and Fees on Loans and Leases $ 164,785 $ 166,286 $ 163,208 $ 159,336 $ 158,324 Income on Investment Securities Available-for-Sale 23,223 23,257 21,468 21,757 22,782 Held-to-Maturity 20,677 21,107 21,595 22,136 22,589 Cash and Cash Equivalents 9,425 8,980 6,139 6,157 5,728 Other 1,107 1,018 1,120 970 924 Total Interest Income 219,217 220,648 213,530 210,356 210,347 Interest Expense Deposits 92,099 96,067 91,542 89,056 87,121 Securities Sold Under Agreements to Repurchase 992 993 1,180 1,443 1,459 Funds Purchased - - 44 - - Other Debt 5,948 5,970 5,918 5,919 5,982 Total Interest Expense 99,039 103,030 98,684 96,418 94,562 Net Interest Income 120,178 117,618 114,846 113,938 115,785 Provision for Credit Losses 3,750 3,000 2,400 2,000 2,500 Net Interest Income After Provision for Credit Losses 116,428 114,618 112,446 111,938 113,285 Noninterest Income Fees, Exchange, and Other Service Charges 14,399 14,945 13,769 14,123 13,774 Trust and Asset Management 12,157 11,916 12,223 11,189 11,144 Service Charges on Deposit Accounts 8,678 8,075 7,730 7,947 7,949 Bank-Owned Life Insurance 3,283 3,533 3,396 3,356 3,176 Annuity and Insurance 1,347 1,460 1,583 1,046 1,271 Mortgage Banking 942 1,188 1,028 951 1,016 Investment Securities Losses, Net (3,306 ) (1,103 ) (1,601 ) (1,497 ) (1,619 ) Other 5,547 5,096 3,959 5,170 5,572 Total Noninterest Income 43,047 45,110 42,087 42,285 42,283 Noninterest Expense Salaries and Benefits 58,690 58,626 57,033 58,215 53,991 Net Equipment 10,308 10,120 10,355 10,103 9,826 Net Occupancy 10,263 10,806 10,559 10,456 9,734 Data Processing 5,313 4,712 4,745 4,770 4,948 Professional Fees 4,988 4,725 4,929 4,677 5,079 FDIC Insurance 3,711 3,355 7,170 3,614 18,545 Other 14,658 14,748 14,435 14,024 13,839 Total Noninterest Expense 107,931 107,092 109,226 105,859 115,962 Income Before Provision for Income Taxes 51,544 52,636 45,307 48,364 39,606 Provision for Income Taxes 12,382 12,278 11,224 11,973 9,210 Net Income $ 39,162 $ 40,358 $ 34,083 $ 36,391 $ 30,396 Preferred Stock Dividends 5,269 3,436 1,969 1,969 1,969 Net Income Available to Common Shareholders $ 33,893 $ 36,922 $ 32,114 $ 34,422 $ 28,427   Basic Earnings Per Common Share $ 0.86 $ 0.94 $ 0.81 $ 0.87 $ 0.72 Diluted Earnings Per Common Share $ 0.85 $ 0.93 $ 0.81 $ 0.87 $ 0.72   Balance Sheet Totals Loans and Leases $ 14,075,980 $ 13,918,583 $ 13,831,266 $ 13,853,837 $ 13,965,026 Total Assets 23,601,114 23,799,174 23,300,768 23,420,860 23,733,296 Total Deposits 20,633,037 20,978,322 20,408,502 20,676,586 21,055,045 Total Shareholders' Equity 1,667,774 1,665,474 1,612,849 1,435,977 1,414,242   Performance Ratios Return on Average Assets 0.66 % 0.69 % 0.59 % 0.63 % 0.51 % Return on Average Shareholders' Equity 9.42 9.90 9.53 10.34 8.86 Return on Average Common Equity 10.30 11.50 10.41 11.20 9.55 Efficiency Ratio 1 66.12 65.81 69.60 67.76 73.36 Net Interest Margin 2 2.19 2.18 2.15 2.11 2.13 1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income). 2 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.   Bank of Hawai‘i Corporation and Subsidiaries Hawaii Economic Trends Table 15 Eleven Months Ended Year Ended (dollars in millions; jobs in thousands) November 30, 2024 December 31, 2023 December 31, 2022 Hawaii Economic Trends State General Fund Revenues 1 $ 9,295.7 6.5 % $ 9,504.1 0.7 % $ 9,441.3 16.0 % General Excise and Use Tax Revenue 1 4,137.1 0.4 4,474.1 4.9 4,263.4 18.3 Jobs 2 652.7 655.2 653.3   November 30, December 31, 2024 2023 2022 Unemployment, seasonally adjusted 2 Statewide 2.9 % 3.0 % 3.2 % Honolulu County 2.8 2.6 3.1 Hawaii County 3.0 2.8 3.5 Maui County 3.4 6.2 3.5 Kauai County 2.9 2.5 3.1   December 31, (1-year percentage change, except months of inventory) 2024 2023 2022 2021 Housing Trends (Single Family Oahu) 3 Median Home Price 4.8 % (5.0 )% 11.6 % 19.3 % Home Sales Volume (units) 9.1 % (26.3 )% (23.2 )% 17.9 % Months of Inventory 2.9 2.8 2.1 0.8   Monthly Visitor Arrivals, Percentage Change (in thousands, except percent change) Not Seasonally Adjusted from Previous Year Tourism 4 November 30, 2024 762.7 5.7 % October 31, 2024 739.0 5.5 September 30, 2024 688.8 6.3 August 31, 2024 819.2 6.9 July 31, 2024 925.3 (0.5 ) June 30, 2024 872.6 (1.5 ) May 31, 2024 757.8 (4.1 ) April 30, 2024 721.9 (10.5 ) March 31, 2024 843.5 (5.5 ) February 29, 2024 752.7 2.6 January 31, 2024 745.6 (3.8 ) December 31, 2023 845.6 (1.5 ) November 30, 2023 721.3 0.3 October 31, 2023 700.4 (3.7 ) September 30, 2023 648.1 (6.4 ) August 31, 2023 766.6 (7.6 ) July 31, 2023 930.2 1.3 June 30, 2023 886.0 5.3 May 31, 2023 790.5 2.1 April 30, 2023 806.2 (0.4 ) March 31, 2023 892.2 13.6 February 28, 2023 733.6 17.6 January 31, 2023 775.1 36.7 December 31, 2022 858.3 14.0 November 30, 2022 719.0 17.1 1 Source: Hawaii Department of Business, Economic Development & Tourism 2 Source: U.S. Bureau of Labor Statistics 3 Source: Honolulu Board of Realtors 4 Source: Hawaii Tourism Authority

Related News