Bank of Hawai‘i Corporation Second Quarter 2025 Financial Results

Business Wire

6 days ago

HONOLULU--(BUSINESS WIRE)--Bank of Hawai'i Corporation (NYSE: BOH) (the 'Company') today reported diluted earnings per common share of $1.06 for the second quarter of 2025, compared with $0.97 during the linked quarter and $0.81 during the same period last year. Net income for the second quarter of 2025 was $47.6 million, up 8.3% from the linked quarter and up 39.8% from the same period last year. The return on average common equity for the second quarter of 2025 was 12.50% compared with 11.80% during the linked quarter and 10.41% during the same period last year.
'Bank of Hawai'i continued to perform well during the second quarter of 2025,' said Peter Ho, Chairman and CEO. 'Our net interest income and net interest margin expanded for the fifth consecutive quarter. Average deposit balances grew while average loan balances held steady. Our credit quality remained excellent, and we continued to maintain our disciplined approach to expense management.'
Financial Highlights
Net interest income for the second quarter of 2025 was $129.7 million, an increase of 3.1% from the linked quarter and an increase of 12.9% as compared to the same period last year. The increase from the previous quarter was primarily driven by higher earning asset yields, as cash flows from fixed rate assets rolling off at lower interest rates were reinvested at higher current rates (fixed asset repricing). The increase from the same period last year was primarily due to lower interest-bearing deposit rates, slowing of the shift from noninterest-bearing and interest-bearing accounts with rates less than 10 basis points to higher interest-bearing deposit accounts (deposit mix shift) and higher average balance of our earning assets.
Net interest margin was 2.39% in the second quarter of 2025, an increase of 7 basis points from the linked quarter and an increase of 24 basis points from the same period last year. As discussed above, the increase from the previous quarter was primarily due to fixed asset repricing. The increase from the same period last year was primarily due to lower interest-bearing deposit rates and slowing of deposit mix shift.
The average yield on loans and leases was 4.80% in the second quarter of 2025, up 8 basis points from the linked quarter and up 4 basis points from the same period last year. The average yield on total earning assets was 4.01% in the second quarter of 2025, up 6 basis points from the linked quarter and up 2 basis points from the same period last year. The average rate of interest-bearing deposits was 2.16% in the second quarter of 2025, flat from the linked quarter and down 30 basis points from the same period last year. The average quarterly rate of total deposits, including noninterest-bearing deposits, was 1.60%, flat from the linked quarter and down 21 basis points from the same period last year. The decrease in deposit rates from the same period last year was primarily due to lower benchmark interest rates and the slowing of the deposit mix shift.
Noninterest income was $44.8 million in the second quarter of 2025, an increase of 1.7% from the linked quarter and an increase of 6.4% from the same period in 2024. Noninterest income in the second quarter included an $0.8 million gain related to a BOLI recovery, while the linked quarter included a $0.6 million charge related to a Visa B conversion ratio change. Adjusted for these items, noninterest income decreased by 1.5% from the linked quarter and increased by 4.5% from the same period in 2024. The decrease from the linked quarter was primarily due to lower customer derivative activity and decreases in mortgage banking income and service charges on deposit accounts, partially offset by an increase in trust and asset management income. The increase from the same period last year was primarily due to increases in other income, services charges on deposit accounts, fees, exchange, and other service charges, bank-owned life insurance income and a decrease in investment securities losses.
Noninterest expense was $110.8 million in the second quarter of 2025, an increase of 0.3% from the linked quarter and an increase of 1.4% from the same period last year. The increase from the linked quarter was primarily due to higher FDIC insurance costs, partially offset by lower salaries and benefits. The increase from the same period last year was primarily due to higher salaries and benefits, partially offset by lower FDIC insurance costs.
The effective tax rate for the second quarter of 2025 was 21.19% compared with 21.67% during the linked quarter and 24.77% during the same period last year. The lower effective tax rate in the current quarter as compared to the linked quarter was primarily due to an increase in tax-exempt income. Compared to the same period last year, the decrease was primarily due to a decrease in tax expense from discrete items and an increase in tax-exempt income.
Asset Quality
The Company's overall asset quality remained strong during the second quarter of 2025. Provision for credit losses for the second quarter of 2025 was $3.3 million, unchanged from the linked quarter and up from $2.4 million in the same period last year.
Total non-performing assets were $17.9 million at June 30, 2025, up $0.4 million from March 31, 2025 and up $2.7 million from June 30, 2024. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.13% at the end of the quarter, an increase of 1 basis point from the linked quarter and an increase of 2 basis points from the same period last year.
Net loan and lease charge-offs during the second quarter of 2025 were $2.6 million or 7 basis points annualized of total average loans and leases outstanding and comprised of gross charge-offs of $4.0 million partially offset by gross recoveries of $1.4 million. Compared to the linked quarter, net loan and lease charge-offs decreased by $1.8 million or 6 basis points annualized on total average loans and leases outstanding. Compared to the same period last year, net loan and lease charge-offs decreased by $0.8 million or 3 basis points annualized on total average loans and leases outstanding.
The allowance for credit losses on loans and leases was $148.5 million at June 30, 2025, an increase of $0.8 million from March 31, 2025 and an increase of $1.1 million from June 30, 2024. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.06% at the end of the quarter, up 1 basis point from the linked quarter and down 1 basis point from the same period last year.
Balance Sheet
Total assets were $23.7 billion at June 30, 2025, a decrease of 0.7% from March 31, 2025 and an increase of 1.8% from June 30, 2024. The decrease from the linked quarter was primarily due to decreases in cash and cash equivalents and loans, partially offset by an increase in investment securities. The increase from the same period last year was primarily due to increases in loans and investment securities, partially offset by a decrease in cash and cash equivalents.
The investment securities portfolio was $7.6 billion at June 30, 2025, an increase of 1.8% from March 31, 2025 and an increase of 6.2% from June 30, 2024. The increase from the prior periods was primarily due to the purchases of investment securities, partially offset by the amortization of the portfolio. 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 $14.0 billion at June 30, 2025, a decrease of 0.8% from March 31, 2025 and an increase of 1.2% from June 30, 2024. Total commercial loans were $6.1 billion at June 30, 2025, a decrease of 1.5% from March 31, 2025 and an increase of 5.0% from June 30, 2024. The decrease from the linked quarter was primarily due to modest loan production within our commercial and industrial portfolio. The increase from the same period last year was primarily due to loan production outpacing loan amortization and paydowns within our commercial mortgage portfolio. Total consumer loans were $7.9 billion at June 30, 2025, a decrease of 0.2% from the linked quarter and a decrease of 1.5% from the same period last year. The decrease from the prior periods was due to declines in our automobile and home equity portfolios.
Total deposits were $20.8 billion at June 30, 2025, a decrease of 1.0% from March 31, 2025 and an increase of 1.9% from June 30, 2024. Noninterest-bearing deposits made up 26.1% of total deposit balances at June 30, 2025, flat from March 31, 2025 and down from 26.3% at June 30, 2024. Average total deposits were $20.7 billion for the second quarter of 2025, up 0.1% from the linked quarter and up 1.7% from 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 14.17% at June 30, 2025 compared with 13.93% at March 31, 2025 and 13.96% at June 30, 2024. The increase from the linked quarter was due to retained earnings growth and decreases in risk-weighted assets. The increase from the same period last year was primarily due to retained earnings growth. The Tier 1 Leverage Ratio was 8.46% at June 30, 2025, compared with 8.36% at March 31, 2025 and 8.37% at June 30, 2024. The increase from the linked quarter was due to a decrease in average total assets and an increase in retained earnings. The increase from the same period last year was due to an increase in retained earnings, partially offset by an increase in average total assets.
No shares of common stock were repurchased under the share repurchase program in the second quarter of 2025. Total remaining buyback authority under the share repurchase program was $126.0 million at June 30, 2025.
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 September 15, 2025 to shareholders of record at the close of business on August 29, 2025.
On July 3, 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 August 1, 2025 to shareholders of record of the preferred stock as of the close of business on July 17, 2025.
Conference Call Information
The Company will review its second quarter financial results today at 8:00 a.m. Hawai'i Time (2:00 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/BIa6a93d497eb94850bae6b073c733bfa9. A replay of the conference call will be available for one year beginning at approximately 11:00 a.m. Hawai'i Time on Monday, July 28, 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, 2024 and its Form 10-Q for fiscal quarter ended March 31, 2025, 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 Six Months Ended
June 30, March 31, June 30, June 30,
(dollars in thousands, except per share amounts)
2025
2025
2024
2025
2024
For the Period:
Operating Results
Net Interest Income
$
129,683
$
125,807
$
114,846
$
255,490
$
228,784
Provision for Credit Losses
3,250
3,250
2,400
6,500
4,400
Total Noninterest Income
44,795
44,058
42,087
88,853
84,372
Total Noninterest Expense
110,783
110,459
109,226
221,242
215,085
Pre-Provision Net Revenue
63,695
59,406
47,707
123,101
98,071
Net Income
47,637
43,985
34,083
91,622
70,474
Net Income Available to Common Shareholders
42,368
38,716
32,114
81,084
66,536
Basic Earnings Per Common Share
1.07
0.98
0.81
2.05
1.69
Diluted Earnings Per Common Share
1.06
0.97
0.81
2.03
1.68
Dividends Declared Per Common Share
0.70
0.70
0.70
1.40
1.40
Performance Ratios
Return on Average Assets
0.81
%
0.75
%
0.59
%
0.78
%
0.61
%
Return on Average Shareholders' Equity
11.21
10.65
9.53
10.93
9.93
Return on Average Common Equity
12.50
11.80
10.41
12.16
10.81
Efficiency Ratio 1
63.49
65.03
69.60
64.25
68.68
Net Interest Margin 2
2.39
2.32
2.15
2.36
2.13
Dividend Payout Ratio 3
65.42
71.43
86.42
68.29
82.84
Average Shareholders' Equity to Average Assets
7.22
7.09
6.22
7.16
6.15
Average Balances
Average Loans and Leases
$
14,049,025
$
14,062,173
$
13,831,797
$
14,055,563
$
13,850,299
Average Assets
23,596,955
23,638,068
23,145,107
23,617,398
23,213,336
Average Deposits
20,699,694
20,669,539
20,358,393
20,684,700
20,451,017
Average Shareholders' Equity
1,704,415
1,675,571
1,438,476
1,690,073
1,427,289
Per Share of Common Stock
Book Value
$
35.16
$
34.23
$
31.91
$
35.16
$
31.91
Tangible Book Value
34.37
33.43
31.12
34.37
31.12
Market Value
Closing
67.53
68.97
57.21
67.53
57.21
High
71.35
76.00
62.53
76.00
73.73
Low
57.45
65.82
54.50
57.45
54.50
June 30, March 31, December 31, June 30,
2025
2025
2024
2024
As of Period End:
Balance Sheet Totals
Loans and Leases
$
14,002,178
$
14,115,323
$
14,075,980
$
13,831,266
Total Assets
23,709,752
23,885,056
23,601,114
23,300,768
Total Deposits
20,798,914
21,008,217
20,633,037
20,408,502
Other Debt
558,226
558,250
558,274
560,136
Total Shareholders' Equity
1,743,107
1,704,935
1,667,774
1,612,849
Asset Quality
Non-Performing Assets
$
17,881
$
17,451
$
19,300
$
15,179
Allowance for Credit Losses - Loans and Leases
148,543
147,707
148,528
147,477
Allowance to Loans and Leases Outstanding 4
1.06
%
1.05
%
1.06
%
1.07
%
Capital Ratios 5
Common Equity Tier 1 Capital Ratio 6
11.81
%
11.58
%
11.59
%
11.56
%
Tier 1 Capital Ratio 6
14.17
13.93
13.95
13.96
Total Capital Ratio 6
15.23
14.97
15.00
15.02
Tier 1 Leverage Ratio
8.46
8.36
8.31
8.37
Total Shareholders' Equity to Total Assets
7.35
7.14
7.07
6.92
Tangible Common Equity to Tangible Assets 7
5.77
5.57
5.48
5.31
Tangible Common Equity to Risk-Weighted Assets 6, 7
9.62
9.28
9.08
8.80
Non-Financial Data
Full-Time Equivalent Employees
1,921
1,876
1,865
1,910
Branches
51
50
50
50
ATMs
317
316
317
317
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 June 30, 2025 are preliminary.
6 Capital ratios as of June 30, 2024 have been updated to reflect final reported ratios.
7 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".
Expand
Bank of Hawai'i Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Table 2
June 30, March 31, December 31, June 30,
(dollars in thousands)
2025
2025
2024
2024
Total Shareholders' Equity
$
1,743,107
$
1,704,935
$
1,667,774
$
1,612,849
Less: Preferred Stock
345,000
345,000
345,000
345,000
Goodwill
31,517
31,517
31,517
31,517
Tangible Common Equity
$
1,366,590
$
1,328,418
$
1,291,257
$
1,236,332
Total Assets
$
23,709,752
$
23,885,056
$
23,601,114
$
23,300,768
Less: Goodwill
31,517
31,517
31,517
31,517
Tangible Assets
$
23,678,235
$
23,853,539
$
23,569,597
$
23,269,251
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements 1, 2
$
14,208,032
$
14,319,932
$
14,225,908
$
14,051,627
Total Shareholders' Equity to Total Assets
7.35
%
7.14
%
7.07
%
6.92
%
Tangible Common Equity to Tangible Assets (Non-GAAP)
5.77
%
5.57
%
5.48
%
5.31
%
Tier 1 Capital Ratio 1, 2
14.17
%
13.93
%
13.95
%
13.96
%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1, 2
9.62
%
9.28
%
9.08
%
8.80
%
1 Regulatory capital ratios as of June 30, 2025 are preliminary.
2 Capital ratios as of June 30, 2024 have been updated to reflect final reported ratios.
Expand
Bank of Hawai'i Corporation and Subsidiaries
Consolidated Statements of Income
Table 3
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
(dollars in thousands, except per share amounts)
2025
2025
2024
2025
2024
Interest Income
Interest and Fees on Loans and Leases
$
166,779
$
163,082
$
163,208
$
329,861
$
322,544
Income on Investment Securities
Available-for-Sale
27,007
24,368
21,468
51,375
43,225
Held-to-Maturity
19,835
20,291
21,595
40,126
43,731
Cash and Cash Equivalents
3,817
5,460
6,139
9,277
12,296
Other
1,097
1,085
1,120
2,182
2,090
Total Interest Income
218,535
214,286
213,530
432,821
423,886
Interest Expense
Deposits
82,476
81,692
91,542
164,168
180,598
Securities Sold Under Agreements to Repurchase
491
744
1,180
1,235
2,623
Other Debt
5,885
6,043
5,962
11,928
11,881
Total Interest Expense
88,852
88,479
98,684
177,331
195,102
Net Interest Income
129,683
125,807
114,846
255,490
228,784
Provision for Credit Losses
3,250
3,250
2,400
6,500
4,400
Net Interest Income After Provision for Credit Losses
126,433
122,557
112,446
248,990
224,384
Noninterest Income
Fees, Exchange, and Other Service Charges
14,383
14,437
13,769
28,820
27,892
Trust and Asset Management
12,097
11,741
12,223
23,838
23,412
Service Charges on Deposit Accounts
8,119
8,259
7,730
16,378
15,677
Bank-Owned Life Insurance
3,714
3,611
3,396
7,325
6,752
Annuity and Insurance
1,437
1,555
1,583
2,992
2,629
Mortgage Banking
849
988
1,028
1,837
1,979
Investment Securities Losses, Net
(1,126
)
(1,607
)
(1,601
)
(2,733
)
(3,098
)
Other
5,322
5,074
3,959
10,396
9,129
Total Noninterest Income
44,795
44,058
42,087
88,853
84,372
Noninterest Expense
Salaries and Benefits
61,308
62,884
57,033
124,192
115,248
Net Occupancy
10,499
10,559
10,559
21,058
21,015
Net Equipment
9,977
10,192
10,355
20,169
20,458
Data Processing
5,456
5,267
4,745
10,723
9,515
Professional Fees
4,263
4,264
4,929
8,527
9,606
FDIC Insurance
3,640
1,642
7,170
5,282
10,784
Other
15,640
15,651
14,435
31,291
28,459
Total Noninterest Expense
110,783
110,459
109,226
221,242
215,085
Income Before Provision for Income Taxes
60,445
56,156
45,307
116,601
93,671
Provision for Income Taxes
12,808
12,171
11,224
24,979
23,197
Net Income
$
47,637
$
43,985
$
34,083
$
91,622
$
70,474
Preferred Stock Dividends
5,269
5,269
1,969
10,538
3,938
Net Income Available to Common Shareholders
$
42,368
$
38,716
$
32,114
$
81,084
$
66,536
Basic Earnings Per Common Share
$
1.07
$
0.98
$
0.81
$
2.05
$
1.69
Diluted Earnings Per Common Share
$
1.06
$
0.97
$
0.81
$
2.03
$
1.68
Dividends Declared Per Common Share
$
0.70
$
0.70
$
0.70
$
1.40
$
1.40
Basic Weighted Average Common Shares
39,622,998
39,554,834
39,450,551
39,588,916
39,400,452
Diluted Weighted Average Common Shares
39,895,093
39,876,406
39,618,705
39,888,294
39,618,774
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Bank of Hawai'i Corporation and Subsidiaries
Consolidated Statements of Condition
Table 5
June 30, March 31, December 31, June 30,
(dollars in thousands, except per share amounts)
2025
2025
2024
2024
Assets
Cash and Cash Equivalents
$
768,683
$
935,200
$
763,571
$
925,338
Investment Securities
Available-for-Sale
3,111,504
2,887,019
2,689,528
2,298,092
Held-to-Maturity (Fair Value of $3,754,794; $3,823,655; $3,820,882; and $4,002,122)
4,441,353
4,535,108
4,618,543
4,812,954
Loans Held for Sale
1,867
2,640
2,150
2,664
Loans and Leases
14,002,178
14,115,323
14,075,980
13,831,266
Allowance for Credit Losses
(148,543
)
(147,707
)
(148,528
)
(147,477
)
Net Loans and Leases
13,853,635
13,967,616
13,927,452
13,683,789
Premises and Equipment, Net
192,221
187,858
184,480
192,319
Operating Lease Right-of-Use Assets
83,594
83,577
80,165
84,757
Accrued Interest Receivable
67,204
67,706
66,367
67,554
Mortgage Servicing Rights
18,362
18,770
19,199
19,954
Goodwill
31,517
31,517
31,517
31,517
Bank-Owned Life Insurance
488,028
481,260
481,184
470,708
Other Assets
651,784
686,785
736,958
711,122
Total Assets
$
23,709,752
$
23,885,056
$
23,601,114
$
23,300,768
Liabilities
Deposits
Noninterest-Bearing Demand
$
5,424,471
$
5,493,232
$
5,423,562
$
5,371,593
Interest-Bearing Demand
3,855,120
3,775,948
3,784,984
3,928,295
Savings
8,481,328
8,700,143
8,364,916
8,207,902
Time
3,037,995
3,038,894
3,059,575
2,900,712
Total Deposits
20,798,914
21,008,217
20,633,037
20,408,502
Securities Sold Under Agreements to Repurchase
50,000
50,000
100,000
100,490
Other Debt
558,226
558,250
558,274
560,136
Operating Lease Liabilities
92,381
92,267
88,794
93,364
Retirement Benefits Payable
23,528
23,640
23,760
23,142
Accrued Interest Payable
26,732
23,261
34,799
37,278
Other Liabilities
416,864
424,486
494,676
465,007
Total Liabilities
21,966,645
22,180,121
21,933,340
21,687,919
Shareholders' Equity
Preferred Stock (Series A, $.01 par value; authorized 180,000 shares issued and outstanding)
180,000
180,000
180,000
180,000
Preferred Stock (Series B, $.01 par value; authorized 165,000 shares issued and outstanding)
165,000
165,000
165,000
165,000
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: June 30, 2025 - 58,775,870 / 39,765,375;
March 31, 2025 - 58,765,864 / 39,734,304; December 31, 2024 - 58,765,907 / 39,762,255;
and June 30, 2024 - 58,765,907 / 39,729,941)
587
586
585
585
Capital Surplus
655,479
651,374
647,403
639,841
Accumulated Other Comprehensive Loss
(299,194
)
(318,397
)
(343,389
)
(374,361
)
Retained Earnings
2,158,450
2,144,326
2,133,838
2,119,140
Treasury Stock, at Cost (Shares: June 30, 2025 - 19,010,495; March 31, 2025 - 19,031,560;
December 31, 2024 - 19,003,609; and June 30, 2024 - 19,035,966)
(1,117,215
)
(1,117,954
)
(1,115,663
)
(1,117,356
)
Total Shareholders' Equity
1,743,107
1,704,935
1,667,774
1,612,849
Total Liabilities and Shareholders' Equity
$
23,709,752
$
23,885,056
$
23,601,114
$
23,300,768
Expand
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, 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
Net Income
-
-
-
-
-
-
-
-
91,622
-
91,622
Other Comprehensive Income
-
-
-
-
-
-
-
44,195
-
-
44,195
Share-Based Compensation
-
-
-
-
-
-
7,517
-
-
-
7,517
Common Stock Issued under Purchase and
Equity Compensation Plans
-
-
-
-
55,906
2
559
-
-
2,048
2,609
Common Stock Repurchased
-
-
-
-
(52,786
)
-
-
-
-
(3,600
)
(3,600
)
Cash Dividends Declared Common Stock ($1.40 per share)
-
-
-
-
-
-
-
-
(56,472
)
-
(56,472
)
Cash Dividends Declared Preferred Stock
-
-
-
-
-
-
-
-
(10,538
)
-
(10,538
)
Balance as of June 30, 2025
180,000
$
180,000
165,000
$
165,000
39,765,375
$
587
$
655,479
$
(299,194
)
$
2,158,450
$
(1,117,215
)
$
1,743,107
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
-
-
-
-
-
-
-
-
70,474
-
70,474
Other Comprehensive Income
-
-
-
-
-
-
-
22,327
-
-
22,327
Share-Based Compensation
-
-
-
-
-
-
7,505
-
-
-
7,505
Preferred Stock Issued, Net
-
-
165,000
165,000
-
-
(4,386
)
-
-
-
160,614
Common Stock Issued under Purchase and
Equity Compensation Plans
-
-
-
-
57,972
2
300
-
1,152
1,283
2,737
Common Stock Repurchased
-
-
-
-
(81,169
)
-
-
-
-
(4,995
)
(4,995
)
Cash Dividends Declared Common Stock ($1.40 per share)
-
-
-
-
-
-
-
-
(56,117
)
-
(56,117
)
Cash Dividends Declared Preferred Stock
-
-
-
-
-
-
-
-
(3,938
)
-
(3,938
)
Balance as of June 30, 2024
180,000
$
180,000
165,000
$
165,000
39,729,941
$
585
$
639,841
$
(374,361
)
$
2,119,140
$
(1,117,356
)
$
1,612,849
Expand
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
June 30, 2025 March 31, 2025 June 30, 2024
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
$
353.7
$
3.8
4.27
%
$
500.0
$
5.5
4.37
%
$
460.1
$
6.1
5.28
%
Investment Securities
Available-for-Sale
Taxable
2,987.2
26.7
3.58
2,790.3
24.1
3.47
2,308.3
21.5
3.73
Non-Taxable
27.4
0.4
5.85
21.3
0.3
5.68
1.6
0.0
2.01
Held-to-Maturity
Taxable
4,462.1
19.7
1.77
4,548.6
20.2
1.77
4,837.2
21.4
1.77
Non-Taxable
34.0
0.2
2.10
34.1
0.2
2.09
34.6
0.2
2.10
Total Investment Securities
7,510.7
47.0
2.50
7,394.3
44.8
2.43
7,181.7
43.1
2.40
Loans Held for Sale
2.2
0.0
5.66
2.3
0.0
6.06
1.4
0.0
6.30
Loans and Leases 3
Commercial Mortgage
4,025.2
53.7
5.35
4,015.2
52.5
5.30
3,723.6
51.6
5.57
Commercial and Industrial
1,668.1
21.1
5.07
1,703.7
21.3
5.06
1,692.7
22.4
5.32
Construction
366.2
6.7
7.30
338.5
6.0
7.22
321.3
6.3
7.85
Commercial Lease Financing
93.4
1.0
4.07
91.1
0.9
3.83
59.3
0.3
2.28
Residential Mortgage
4,626.5
45.6
3.95
4,616.7
44.8
3.88
4,595.2
45.6
3.97
Home Equity
2,141.5
23.3
4.37
2,154.4
22.5
4.23
2,231.7
21.8
3.92
Automobile
730.1
9.4
5.19
752.6
9.3
5.02
813.5
9.1
4.52
Other
398.0
7.5
7.53
390.0
7.1
7.41
394.5
6.8
6.95
Total Loans and Leases
14,049.0
168.3
4.80
14,062.2
164.4
4.72
13,831.8
163.9
4.76
Other
65.2
1.1
6.72
65.1
1.1
6.67
62.5
1.2
7.18
Total Earning Assets
21,980.8
220.2
4.01
22,023.9
215.8
3.95
21,537.5
214.3
3.99
Non-Earning Assets
1,616.2
1,614.2
1,607.6
Total Assets
$
23,597.0
$
23,638.1
$
23,145.1
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand
$
3,705.5
7.6
0.82
$
3,773.4
7.1
0.76
$
3,788.5
8.8
0.94
Savings
8,578.6
48.1
2.25
8,544.5
47.1
2.23
8,259.2
52.0
2.53
Time
3,050.0
26.8
3.52
3,037.3
27.5
3.67
2,935.9
30.7
4.20
Total Interest-Bearing Deposits
15,334.1
82.5
2.16
15,355.2
81.7
2.16
14,983.6
91.5
2.46
Securities Sold Under Agreements to Repurchase
50.0
0.5
3.88
76.7
0.7
3.88
121.9
1.2
3.83
Other Debt
558.3
5.9
4.23
578.2
6.1
4.24
563.4
6.0
4.26
Total Interest-Bearing Liabilities
15,942.4
88.9
2.24
16,010.1
88.5
2.24
15,668.9
98.7
2.53
Net Interest Income
$
131.3
$
127.3
$
115.6
Interest Rate Spread
1.77
%
1.71
%
1.46
%
Net Interest Margin
2.39
%
2.32
%
2.15
%
Noninterest-Bearing Demand Deposits
5,365.6
5,314.3
5,374.8
Other Liabilities
584.6
638.1
662.9
Shareholders' Equity
1,704.4
1,675.6
1,438.5
Total Liabilities and Shareholders' Equity
$
23,597.0
$
23,638.1
$
23,145.1
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 $1.6 million, $1.5 million, and $774 thousand
for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively.
3 Non-performing loans and leases are included in the respective average loan and lease balances.
Expand
Bank of Hawai'i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis 1
Table 7b
Six Months Ended Six Months Ended
June 30, 2024
Average Income / Yield / Average Income / Yield /
(dollars in millions) Balance Expense 2 Rate Balance Expense 2 Rate
Earning Assets
Cash and Cash Equivalents
$
426.4
$
9.3
4.33
%
$
460.4
$
12.3
5.28
%
Investment Securities
Available-for-Sale
Taxable
2,889.3
50.8
3.53
2,344.3
43.2
3.69
Non-Taxable
24.3
0.7
5.77
1.7
0.0
2.00
Held-to-Maturity
Taxable
4,505.1
39.8
1.77
4,882.0
43.4
1.78
Non-Taxable
34.1
0.4
2.10
34.7
0.4
2.10
Total Investment Securities
7,452.8
91.7
2.47
7,262.7
87.0
2.40
Loans Held for Sale
2.2
0.1
5.87
1.8
0.1
6.22
Loans and Leases 3
Commercial Mortgage
4,020.3
106.2
5.33
3,720.1
102.1
5.52
Commercial and Industrial
1,685.8
42.3
5.06
1,678.0
44.5
5.33
Construction
352.4
12.7
7.26
314.6
11.8
7.57
Commercial Lease Financing
92.3
1.8
3.95
58.8
0.6
2.08
Residential Mortgage
4,621.6
90.5
3.91
4,622.6
90.7
3.92
Home Equity
2,147.9
45.8
4.30
2,240.9
42.9
3.85
Automobile
741.3
18.8
5.10
822.2
18.0
4.41
Other
394.0
14.6
7.47
393.1
13.3
6.80
Total Loans and Leases
14,055.6
332.7
4.76
13,850.3
323.9
4.70
Other
65.2
2.1
6.70
62.4
2.0
6.70
Total Earning Assets
22,002.2
435.9
3.98
21,637.6
425.3
3.94
Non-Earning Assets
1,615.2
1,575.7
Total Assets
$
23,617.4
$
23,213.3
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand
$
3,739.2
14.7
0.79
$
3,776.3
16.5
0.88
Savings
8,561.7
95.2
2.24
8,195.3
101.4
2.49
Time
3,043.7
54.3
3.60
3,008.5
62.7
4.19
Total Interest-Bearing Deposits
15,344.6
164.2
2.16
14,980.1
180.6
2.42
Securities Sold Under Agreements to Repurchase
63.3
1.2
3.88
136.2
2.6
3.81
Other Debt
568.2
11.9
4.23
561.8
11.9
4.25
Total Interest-Bearing Liabilities
15,976.1
177.3
2.24
15,678.1
195.1
2.50
Net Interest Income
$
258.6
$
230.2
Interest Rate Spread
1.74
%
1.44
%
Net Interest Margin
2.36
%
2.13
%
Noninterest-Bearing Demand Deposits
5,340.1
5,470.9
Other Liabilities
611.1
637.0
Shareholders' Equity
1,690.1
1,427.3
Total Liabilities and Shareholders' Equity
$
23,617.4
$
23,213.3
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 $3.1 million and $1.5 million
for the six months ended June 30, 2025 and June 30, 2024, respectively.
3 Non-performing loans and leases are included in the respective average loan and lease balances.
Expand
Bank of Hawai'i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis
Table 8a
Three Months Ended June 30, 2025
Compared to March 31, 2025
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Cash and Cash Equivalents
$
(1.6
)
$
(0.1
)
$
(1.7
)
Investment Securities
Available-for-Sale
Taxable
1.8
0.8
2.6
Non-Taxable
0.1
0.0
0.1
Held-to-Maturity
Taxable
(0.4
)
(0.1
)
(0.5
)
Non-Taxable
0.0
0.0
0.0
Total Investment Securities
1.5
0.7
2.2
Loans Held for Sale
0.0
0.0
0.0
Loans and Leases
Commercial Mortgage
0.2
1.0
1.2
Commercial and Industrial
(0.2
)
0.0
(0.2
)
Construction
0.6
0.1
0.7
Commercial Lease Financing
0.1
0.0
0.1
Residential Mortgage
0.1
0.7
0.8
Home Equity
(0.1
)
0.9
0.8
Automobile
(0.2
)
0.3
0.1
Other
0.2
0.2
0.4
Total Loans and Leases
0.7
3.2
3.9
Other
0.0
0.0
0.0
Total Change in Interest Income
0.6
3.8
4.4
Change in Interest Expense:
Interest-Bearing Deposits
Demand
(0.1
)
0.6
0.5
Savings
0.4
0.6
1.0
Time
0.2
(0.9
)
(0.7
)
Total Interest-Bearing Deposits
0.5
0.3
0.8
Securities Sold Under Agreements to Repurchase
(0.3
)
0.1
(0.2
)
Other Debt
(0.2
)
0.0
(0.2
)
Total Change in Interest Expense
0.0
0.4
0.4
Change in Net Interest Income
$
0.6
$
3.4
$
4.0
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.
Expand
Bank of Hawai'i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis
Table 8b
Three Months Ended June 30, 2025
Compared to June 30, 2024
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Cash and Cash Equivalents
$
(1.3
)
$
(1.0
)
$
(2.3
)
Investment Securities
Available-for-Sale
Taxable
6.1
(0.9
)
5.2
Non-Taxable
0.4
0.0
0.4
Held-to-Maturity
Taxable
(1.7
)
(0.1
)
(1.8
)
Non-Taxable
0.0
-
0.0
Total Investment Securities
4.8
(1.0
)
3.8
Loans Held for Sale
0.0
0.0
0.0
Loans and Leases
Commercial Mortgage
4.2
(2.1
)
2.1
Commercial and Industrial
(0.3
)
(1.0
)
(1.3
)
Construction
0.9
(0.5
)
0.4
Commercial Lease Financing
0.5
0.2
0.7
Residential Mortgage
0.3
(0.3
)
0.0
Home Equity
(0.9
)
2.4
1.5
Automobile
(1.0
)
1.3
0.3
Other
0.1
0.6
0.7
Total Loans and Leases
3.8
0.6
4.4
Other
0.2
(0.3
)
(0.1
)
Total Change in Interest Income
7.5
(1.7
)
5.8
Change in Interest Expense:
Interest-Bearing Deposits
Demand
(0.2
)
(1.0
)
(1.2
)
Savings
2.0
(5.9
)
(3.9
)
Time
1.2
(5.1
)
(3.9
)
Total Interest-Bearing Deposits
3.0
(12.0
)
(9.0
)
Securities Sold Under Agreements to Repurchase
(0.7
)
0.0
(0.7
)
Other Debt
0.0
(0.1
)
(0.1
)
Total Change in Interest Expense
2.3
(12.1
)
(9.8
)
Change in Net Interest Income
$
5.2
$
10.4
$
15.6
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.
Expand
Bank of Hawai'i Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis
Table 8c
Six Months Ended June 30, 2025
Compared to June 30, 2024
(dollars in millions) Volume 1 Rate 1 Total
Change in Interest Income:
Cash and Cash Equivalents
$
(0.9
)
$
(2.1
)
$
(3.0
)
Investment Securities
Available-for-Sale
Taxable
9.6
(2.0
)
7.6
Non-Taxable
0.6
0.1
0.7
Held-to-Maturity
Taxable
(3.3
)
(0.3
)
(3.6
)
Non-Taxable
0.0
-
0.0
Total Investment Securities
6.9
(2.2
)
4.7
Loans Held for Sale
0.0
0.0
0.0
Loans and Leases
Commercial Mortgage
7.8
(3.7
)
4.1
Commercial and Industrial
0.2
(2.4
)
(2.2
)
Construction
1.4
(0.5
)
0.9
Commercial Lease Financing
0.9
0.3
1.2
Residential Mortgage
0.0
(0.2
)
(0.2
)
Home Equity
(1.9
)
4.8
2.9
Automobile
(1.8
)
2.6
0.8
Other
0.0'
1.3
1.3
Total Loans and Leases
6.6
2.2
8.8
Other
0.1
0.0
0.1
Total Change in Interest Income
12.7
(2.1
)
10.6
Change in Interest Expense:
Interest-Bearing Deposits
Demand
(0.2
)
(1.6
)
(1.8
)
Savings
4.3
(10.5
)
(6.2
)
Time
0.7
(9.1
)
(8.4
)
Total Interest-Bearing Deposits
4.8
(21.2
)
(16.4
)
Securities Sold Under Agreements to Repurchase
(1.4
)
0.0
(1.4
)
Other Debt
0.1
(0.1
)
0.0
Total Change in Interest Expense
3.5
(21.3
)
(17.8
)
Change in Net Interest Income
$
9.2
$
19.2
$
28.4
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.
Expand
Bank of Hawai'i Corporation and Subsidiaries
Salaries and Benefits
Table 9
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
(dollars in thousands)
2025
2025
2024
2025
2024
Salaries
$
39,644
$
38,242
$
38,662
$
77,886
$
76,693
Incentive Compensation
5,067
5,573
3,109
10,640
6,199
Retirement and Other Benefits
3,894
5,061
3,961
8,955
8,260
Share-Based Compensation
3,668
3,501
3,296
7,169
7,095
Medical, Dental, and Life Insurance
3,610
4,537
3,211
8,147
6,423
Payroll Taxes
2,998
4,766
3,070
7,764
7,800
Separation Expense
1,374
81
785
1,455
1,267
Commission Expense
1,053
1,123
939
2,176
1,511
Total Salaries and Benefits
$
61,308
$
62,884
$
57,033
$
124,192
$
115,248
Expand
Bank of Hawai'i Corporation and Subsidiaries
Loan and Lease Portfolio Balances
Table 10
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands)
2025
2025
2024
2024
2024
Commercial
Commercial Mortgage
$
4,038,956
$
4,038,287
$
4,020,622
$
3,868,566
$
3,741,140
Commercial and Industrial
1,597,560
1,703,290
1,705,133
1,681,693
1,699,438
Construction
374,768
363,716
308,898
319,150
315,571
Lease Financing
92,842
92,456
90,756
60,665
59,388
Total Commercial
6,104,126
6,197,749
6,125,409
5,930,074
5,815,537
Consumer
Residential Mortgage
4,637,014
4,630,876
4,628,283
4,622,677
4,595,586
Home Equity
2,139,025
2,144,955
2,165,514
2,195,844
2,221,073
Automobile
715,688
740,390
764,146
786,910
806,240
Other
406,325
401,353
392,628
383,078
392,830
Total Consumer
7,898,052
7,917,574
7,950,571
7,988,509
8,015,729
Total Loans and Leases
$
14,002,178
$
14,115,323
$
14,075,980
$
13,918,583
$
13,831,266
Deposits
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands)
2025
2025
2024
2024
2024
Consumer
$
10,429,271
$
10,522,627
$
10,397,777
$
10,340,466
$
10,382,432
Commercial
8,243,898
8,411,838
8,299,590
8,356,239
7,995,618
Public and Other
2,125,745
2,073,752
1,935,670
2,281,617
2,030,452
Total Deposits
$
20,798,914
$
21,008,217
$
20,633,037
$
20,978,322
$
20,408,502
Average Deposits
Three Months Ended
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands)
2025
2025
2024
2024
2024
Consumer
$
10,435,867
$
10,408,747
$
10,327,928
$
10,345,772
$
10,379,724
Commercial
8,316,893
8,318,182
8,564,213
8,207,310
8,188,685
Public and Other
1,946,933
1,942,610
1,864,541
1,931,309
1,789,984
Total Deposits
$
20,699,693
$
20,669,539
$
20,756,682
$
20,484,391
$
20,358,393
Expand
Bank of Hawai'i Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More
Table 11
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands)
2025
2025
2024
2024
2024
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial Mortgage
$
2,566
$
2,195
$
2,450
$
2,680
$
2,601
Commercial and Industrial
3,744
3,451
4,627
6,218
3,681
Total Commercial
6,310
5,646
7,077
8,898
6,282
Consumer
Residential Mortgage
5,842
4,686
5,052
4,269
2,998
Home Equity
5,387
5,759
4,514
3,947
3,227
Total Consumer
11,229
10,445
9,566
8,216
6,225
Total Non-Accrual Loans and Leases
17,539
16,091
16,643
17,114
12,507
Foreclosed Real Estate
342
1,360
2,657
2,667
2,672
Total Non-Performing Assets
$
17,881
$
17,451
$
19,300
$
19,781
$
15,179
Accruing Loans and Leases Past Due 90 Days or More
Consumer
Residential Mortgage
$
9,070
$
3,895
$
3,984
$
4,421
$
4,524
Home Equity
1,867
2,228
2,845
1,980
2,025
Automobile
680
486
776
580
568
Other
630
943
677
554
733
Total Consumer
12,247
7,552
8,282
7,535
7,850
Total Accruing Loans and Leases Past Due 90 Days or More
$
12,247
$
7,552
$
8,282
$
7,535
$
7,850
Total Loans and Leases
$
14,002,178
$
14,115,323
$
14,075,980
$
13,918,583
$
13,831,266
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases
0.13
%
0.11
%
0.12
%
0.12
%
0.09
%
Ratio of Non-Performing Assets to Total Loans and Leases
and Foreclosed Real Estate
0.13
%
0.12
%
0.14
%
0.14
%
0.11
%
Ratio of Non-Performing Assets to Total Assets
0.08
%
0.07
%
0.08
%
0.08
%
0.07
%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans
and Leases and Commercial Foreclosed Real Estate
0.10
%
0.09
%
0.12
%
0.15
%
0.11
%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
and Leases and Consumer Foreclosed Real Estate
0.15
%
0.15
%
0.15
%
0.14
%
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
0.22
%
0.18
%
0.20
%
0.20
%
0.17
%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter
$
17,451
$
19,300
$
19,781
$
15,179
$
11,838
Additions 1
3,522
2,209
2,198
5,557
5,257
Reductions
Payments
(1,424
)
(1,212
)
(708
)
(734
)
(844
)
Return to Accrual Status
(574
)
(244
)
(476
)
(81
)
(1,018
)
Sales of Foreclosed Real Estate
(1,040
)
(1,492
)
-
-
-
Charge-offs / Write-downs 1
(54
)
(1,110
)
(1,495
)
(140
)
(54
)
Total Reductions
(3,092
)
(4,058
)
(2,679
)
(955
)
(1,916
)
Balance at End of Quarter
$
17,881
$
17,451
$
19,300
$
19,781
$
15,179
1 Excludes loans that are fully charged-off and place on non-accrual status during the same period.
Expand
Bank of Hawai'i Corporation and Subsidiaries
Reserve for Credit Losses
Table 12
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
(dollars in thousands)
2025
2025
2024
2025
2024
Balance at Beginning of Period
$
149,496
$
150,649
$
152,148
$
150,649
$
152,429
Loans and Leases Charged-Off
Commercial
Commercial and Industrial
(206
)
(1,399
)
(875
)
(1,605
)
(1,235
)
Consumer
Residential Mortgage
-
-
(48
)
-
(48
)
Home Equity
(155
)
(75
)
(202
)
(230
)
(237
)
Automobile
(1,253
)
(1,751
)
(1,095
)
(3,004
)
(2,143
)
Other
(2,397
)
(2,484
)
(2,610
)
(4,881
)
(4,922
)
Total Loans and Leases Charged-Off
(4,011
)
(5,709
)
(4,830
)
(9,720
)
(8,585
)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial
78
77
263
155
379
Consumer
Residential Mortgage
11
11
63
22
105
Home Equity
180
128
113
308
297
Automobile
557
633
481
1,190
1,007
Other
567
457
517
1,024
1,123
Total Recoveries on Loans and Leases Previously Charged-Off
1,393
1,306
1,437
2,699
2,911
Net Charged-Off Loans and Leases
(2,618
)
(4,403
)
(3,393
)
(7,021
)
(5,674
)
Provision for Credit Losses:
Loans and Leases
3,454
3,582
3,206
7,036
6,748
Unfunded Commitments
(204
)
(332
)
(806
)
(536
)
(2,348
)
Total Provision for Credit Losses
3,250
3,250
2,400
6,500
4,400
Balance at End of Period
$
150,128
$
149,496
$
151,155
$
150,128
$
151,155
Components
Allowance for Credit Losses - Loans and Leases
$
148,543
$
147,707
$
147,477
$
148,543
$
147,477
Reserve for Unfunded Commitments
1,585
1,789
3,678
1,585
3,678
Total Reserve for Credit Losses
$
150,128
$
149,496
$
151,155
$
150,128
$
151,155
Average Loans and Leases Outstanding
$
14,049,025
$
14,062,173
$
13,831,797
$
14,055,563
$
13,850,299
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)
0.07
%
0.13
%
0.10
%
0.10
%
0.08
%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 1
1.06
%
1.05
%
1.07
%
1.06
%
1.07
%
1 The numerator comprises the Allowance for Credit Losses - Loans and Leases.
Expand
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 June 30, 2025
Net Interest Income (Expense)
$
95,339
$
53,949
$
(19,605
)
$
129,683
Provision for (Recapture of) Credit Losses
2,619
(1
)
632
3,250
Net Interest Income (Expense) After Provision for Credit Losses
92,720
53,950
(20,237
)
126,433
Noninterest Income
33,981
6,164
4,650
44,795
Salaries and Benefits
21,032
4,937
35,339
61,308
Net Occupancy
7,142
402
2,955
10,499
Other Noninterest Expense
58,629
13,535
(33,188
)
38,976
Noninterest Expense
86,803
18,874
5,106
110,783
Income (Loss) Before Provision for Income Taxes
39,898
41,240
(20,693
)
60,445
Provision (Benefit) for Income Taxes
10,161
10,546
(7,899
)
12,808
Net Income (Loss)
$
29,737
$
30,694
$
(12,794
)
$
47,637
Total Assets as of June 30, 2025
$
8,228,766
$
6,139,748
$
9,341,238
$
23,709,752
Three Months June 30, 2024 1
Net Interest Income (Expense)
$
98,205
$
50,885
$
(34,244
)
$
114,846
Provision for (Recapture of) Credit Losses
2,873
473
(946
)
2,400
Net Interest Income (Expense) After Provision for Credit Losses
95,332
50,412
(33,298
)
112,446
Noninterest Income
33,653
6,698
1,736
42,087
Salaries and Benefits
20,157
5,085
31,791
57,033
Net Occupancy
6,748
421
3,390
10,559
Other Noninterest Expense
60,106
12,504
(30,976
)
41,634
Noninterest Expense
87,011
18,010
4,205
109,226
Income (Loss) Before Provision for Income Taxes
41,974
39,100
(35,767
)
45,307
Provision (Benefit) for Income Taxes
10,685
9,887
(9,348
)
11,224
Net Income (Loss)
$
31,289
$
29,213
$
(26,419
)
$
34,083
Total Assets as of June 30, 2024
$
8,357,830
$
5,835,399
$
9,107,539
$
23,300,768
1 Certain prior period information has been reclassified to conform to current presentation.
Expand
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
Six Months Ended June 30, 2025
Net Interest Income (Expense)
$
190,963
$
109,523
$
(44,996
)
$
255,490
Provision for (Recapture of) Credit Losses
5,914
1,107
(521
)
6,500
Net Interest Income (Expense) After Provision for Credit Losses
185,049
108,416
(44,475
)
248,990
Noninterest Income
67,479
13,898
7,476
88,853
Salaries and Benefits
42,137
10,297
71,758
124,192
Net Occupancy
14,209
802
6,047
21,058
Other Noninterest Expense
116,831
27,417
(68,256
)
75,992
Noninterest Expense
173,177
38,516
9,549
221,242
Income (Loss) Before Provision for Income Taxes
79,351
83,798
(46,548
)
116,601
Provision (Benefit) for Income Taxes
20,162
21,415
(16,598
)
24,979
Net Income (Loss)
$
59,189
$
62,383
$
(29,950
)
$
91,622
Total Assets as of June 30, 2025
$
8,228,766
$
6,139,748
$
9,341,238
$
23,709,752
Six Months Ended June 30, 2024 1
Net Interest Income (Expense)
$
195,199
$
102,378
$
(68,793
)
$
228,784
Provision for (Recapture of) Credit Losses
5,160
467
(1,227
)
4,400
Net Interest Income (Expense) After Provision for Credit Losses
190,039
101,911
(67,566
)
224,384
Noninterest Income
65,635
13,492
5,245
84,372
Salaries and Benefits
41,074
10,601
63,573
115,248
Net Occupancy
13,612
868
6,535
21,015
Other Noninterest Expense
115,030
25,184
(61,392
)
78,822
Noninterest Expense
169,716
36,653
8,716
215,085
Income (Loss) Before Provision for Income Taxes
85,958
78,750
(71,037
)
93,671
Provision (Benefit) for Income Taxes
21,865
19,895
(18,563
)
23,197
Net Income (Loss)
$
64,093
$
58,855
$
(52,474
)
$
70,474
Total Assets as of June 30, 2024
$
8,357,830
$
5,835,399
$
9,107,539
$
23,300,768
1 Certain prior period information has been reclassified to conform to current presentation.
Expand
Bank of Hawai'i Corporation and Subsidiaries
Selected Quarterly Financial Data
Table 14
Three Months Ended
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands, except per share amounts)
2025
2025
2024
2024
2024
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases
$
166,779
$
163,082
$
164,785
$
166,286
$
163,208
Income on Investment Securities
Available-for-Sale
27,007
24,368
23,223
23,257
21,468
Held-to-Maturity
19,835
20,291
20,677
21,107
21,595
Cash and Cash Equivalents
3,817
5,460
9,425
8,980
6,139
Other
1,097
1,085
1,107
1,018
1,120
Total Interest Income
218,535
214,286
219,217
220,648
213,530
Interest Expense
Deposits
82,476
81,692
92,099
96,067
91,542
Securities Sold Under Agreements to Repurchase
491
744
992
993
1,180
Other Debt
5,885
6,043
5,948
5,970
5,962
Total Interest Expense
88,852
88,479
99,039
103,030
98,684
Net Interest Income
129,683
125,807
120,178
117,618
114,846
Provision for Credit Losses
3,250
3,250
3,750
3,000
2,400
Net Interest Income After Provision for Credit Losses
126,433
122,557
116,428
114,618
112,446
Noninterest Income
Fees, Exchange, and Other Service Charges
14,383
14,437
14,399
14,945
13,769
Trust and Asset Management
12,097
11,741
12,157
11,916
12,223
Service Charges on Deposit Accounts
8,119
8,259
8,678
8,075
7,730
Bank-Owned Life Insurance
3,714
3,611
3,283
3,533
3,396
Annuity and Insurance
1,437
1,555
1,347
1,460
1,583
Mortgage Banking
849
988
942
1,188
1,028
Investment Securities Losses, Net
(1,126
)
(1,607
)
(3,306
)
(1,103
)
(1,601
)
Other
5,322
5,074
5,547
5,096
3,959
Total Noninterest Income
44,795
44,058
43,047
45,110
42,087
Noninterest Expense
Salaries and Benefits
61,308
62,884
58,690
58,626
57,033
Net Occupancy
10,499
10,559
10,263
10,806
10,559
Net Equipment
9,977
10,192
10,308
10,120
10,355
Data Processing
5,456
5,267
5,313
4,712
4,745
Professional Fees
4,263
4,264
4,988
4,725
4,929
FDIC Insurance
3,640
1,642
3,711
3,355
7,170
Other
15,640
15,651
14,658
14,748
14,435
Total Noninterest Expense
110,783
110,459
107,931
107,092
109,226
Income Before Provision for Income Taxes
60,445
56,156
51,544
52,636
45,307
Provision for Income Taxes
12,808
12,171
12,382
12,278
11,224
Net Income
$
47,637
$
43,985
$
39,162
$
40,358
$
34,083
Preferred Stock Dividends
5,269
5,269
5,269
3,436
1,969
Net Income Available to Common Shareholders
$
42,368
$
38,716
$
33,893
$
36,922
$
32,114
Basic Earnings Per Common Share
$
1.07
$
0.98
$
0.86
$
0.94
$
0.81
Diluted Earnings Per Common Share
$
1.06
$
0.97
$
0.85
$
0.93
$
0.81
Balance Sheet Totals
Loans and Leases
$
14,002,178
$
14,115,323
$
14,075,980
$
13,918,583
$
13,831,266
Total Assets
23,709,752
23,885,056
23,601,114
23,799,174
23,300,768
Total Deposits
20,798,914
21,008,217
20,633,037
20,978,322
20,408,502
Total Shareholders' Equity
1,743,107
1,704,935
1,667,774
1,665,474
1,612,849
Performance Ratios
Return on Average Assets
0.81
%
0.75
%
0.66
%
0.69
%
0.59
%
Return on Average Shareholders' Equity
11.21
10.65
9.42
9.90
9.53
Return on Average Common Equity
12.50
11.80
10.30
11.50
10.41
Efficiency Ratio 1
63.49
65.03
66.12
65.81
69.60
Net Interest Margin 2
2.39
2.32
2.19
2.18
2.15
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.
Expand
Bank of Hawai'i Corporation and Subsidiaries
Hawaii Economic Trends
Table 15
Five Months Ended Year Ended
(dollars in millions, jobs in thousands, 1-year percentage change) May 31, 2025 December 31, 2024 December 31, 2023
Hawaii Economic Trends
State General Fund Revenues 1
$
4,053.8
(3.4
)
%
$
10,124.9
6.5
%
$
9,504.1
0.7
%
General Excise and Use Tax Revenue 1
2,037.7
6.5
4,495.0
0.5
4,474.1
4.9
Jobs 2
669.3
661.6
657.7