Bank of Hawai‘i Corporation Third Quarter 2026 Financial Results
- Diluted Earnings Per Common Share of $1.49
- Net Income of $64.3 Million
- Net Interest Margin Increased to 2.82%
- Share Repurchases of $20.2 Million
- Share Repurchase Program Increased by $200 Million
HONOLULU–(BUSINESS WIRE)–
Bank of Hawai‘i Corporation (NYSE: BOH) (the “Company”) today reported diluted earnings per common share of $1.49 for the third quarter of 2026, compared with $1.47 during the linked quarter. Net income for the quarter was $64.3 million, up 0.7% from the linked quarter. The return on average common equity for the third quarter of 2026 was 15.38% compared with 15.47% during the linked quarter.
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“Bank of Hawai‘i delivered another quarter of solid performance, supported by continued expense discipline,” said Jim Polk, President and CEO. “Net interest margin expanded for the tenth consecutive quarter, reflecting the ongoing benefit of asset repricing and the positive impact of deposit repricing actions. Loan balances increased from the prior quarter, our funding profile remained resilient, and credit quality stayed healthy. We remain focused on enhancing earnings while maintaining the financial strength and resilience that differentiate our franchise.”
Financial Highlights
Net interest income for the third quarter of 2026 was $156.1 million, an increase of 1.6% from the linked quarter. The increase was primarily driven by a 5-basis point increase in earning asset yield as fixed-rate assets rolled off and were reinvested at higher rates (fixed asset repricing). The benefits were partially offset by a shift from noninterest-bearing deposits and interest-bearing deposits yielding less than 10 basis points to higher yielding interest-bearing deposits accounts (deposit mix shift).
Net interest margin was 2.82% in the third quarter of 2026, an increase of 4 basis points from the linked quarter, reflecting the same asset yield and deposit cost dynamics as previously mentioned.
The average yield on total earning assets was 4.13% and the average yield on loans and leases was 4.82% in the third quarter of 2026, up 5 basis points and 3 basis points, respectively, from the linked quarter. The increase in loan yield from the linked quarter was primarily driven by fixed asset repricing and additional loan production at higher current rates. Loan originations, including floating rate loans, during the quarter were originated at a weighted average rate of 5.89%.
The average quarterly rate of interest-bearing deposits was 1.72% and the average quarterly rate of total deposits, including noninterest-bearing deposits, was 1.27%, down 1 basis point and unchanged, respectively, from the linked quarter.
Noninterest income was $42.7 million in the third quarter of 2026, a decrease of 1.4% from the linked quarter. Noninterest income included a $0.6 million and a $0.4 million charge related to a Visa Class B share conversion ratio change in the third quarter of 2026 and linked quarter, respectively. Adjusted for these items, noninterest income for the third quarter of 2026 was down 0.9% from the linked quarter. The decrease was primarily due to lower gains on leased asset sales and seasonally higher trust-related tax services revenue in the linked quarter, partially offset by stronger deposit fees.
Noninterest expense was $112.3 million in the third quarter of 2026, an increase of 1.0% from the linked quarter. Noninterest expense in the linked quarter included a $0.5 million net benefit related to the forfeiture of restricted stock awards. Adjusted for this item, noninterest expense for the third quarter of 2026 increased by 0.5% from the linked quarter. The increase was primarily due to higher net equipment and net occupancy expenses.
The effective tax rate for the third quarter of 2026 was 23.24% compared to 22.31% during the linked quarter. The higher effective tax rate in the current quarter as compared to the linked quarter was primarily due to an increase in valuation allowance related to low-income housing investments.
Asset Quality
The Company’s overall asset quality remained stable during the third quarter of 2026. Provision for credit losses for the third quarter of 2026 was $2.8 million, down $0.9 million from the linked quarter.
Total non-performing assets were $43.4 million at September 30, 2026, up $31.9 million from June 30, 2026. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.30% at the end of the quarter, an increase of 22 basis points from the linked quarter. The increase was primarily due to a single commercial mortgage being placed on non-accrual status in the third quarter of 2026 due to borrower specific circumstances on this particular loan and is not believed to represent broader credit deterioration in the loan portfolio.
Net loan and lease charge-offs during the third quarter of 2026 were $3.3 million or 9 basis points annualized of total average loans and leases outstanding. Gross charge-offs of $4.7 million were partially offset by gross recoveries of $1.4 million. Compared to the linked quarter, net loan and lease charge-offs decreased by $0.1 million or 1 basis point annualized on total average loans and leases outstanding.
The allowance for credit losses on loans and leases was $146.2 million at September 30, 2026, a decrease of $0.8 million from June 30, 2026. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.02% at the end of the quarter, a decrease of 1 basis point from June 30, 2026.
Balance Sheet
Total assets were $23.8 billion at September 30, 2026, a decrease of 1.5% from December 31, 2025. The decrease from December 31, 2025 was primarily due to decreases in cash and cash equivalents and held-to-maturity securities, partially offset by increases in loans and leases.
The investment securities portfolio was $7.5 billion at September 30, 2026, a decrease of 3.3% from December 31, 2025. The decrease was primarily due to portfolio runoff, including maturities and paydowns, a decline in the fair value of our available-for-sale investment portfolio, partially offset by purchases of available-for-sale securities. The investment securities portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.
Total loans and leases were $14.4 billion at September 30, 2026, an increase of 2.1% from December 31, 2025. Total commercial loans were $6.3 billion at September 30, 2026, an increase of 3.8% from December 31, 2025. The increase was primarily due to commercial mortgage and commercial and industrial production. Total consumer loans were $8.1 billion at September 30, 2026, an increase of 0.7% from December 31, 2025. Both commercial and consumer loan originations during the period were partially offset by amortization and paydowns.
Total deposits were $20.5 billion at September 30, 2026, a decrease of 3.3% from December 31, 2025. The decrease was primarily driven by the strategic runoff of public funds and lower commercial deposit balances. Noninterest-bearing deposits made up 26.5% of total deposit balances at September 30, 2026, down from 27.2% at December 31, 2025. Average total deposits were $20.7 billion for the third quarter of 2026, down 1.5% from December 31, 2025, primarily reflecting lower commercial deposit balances during the period.
Capital and Dividends
The Company’s capital levels remain well above regulatory well-capitalized minimums.
The Tier 1 Capital Ratio was 14.41% at September 30, 2026 compared with 14.49% at December 31, 2025. The decrease from December 31, 2025 was due to an increase in risk-weighted assets and share repurchases, as discussed below, partially offset by an increase in retained earnings. The Tier 1 Leverage Ratio was 8.79% at September 30, 2026, compared with 8.57% at December 31, 2025. The increase from December 31, 2025 was due to a decline in average assets and an increase in retained earnings.
The Company repurchased 256 thousand shares of common stock at a total cost of $20.2 million under the share repurchase program in the third quarter of 2026. Total remaining buyback authority under the share repurchase program was $68.7 million at September 30, 2026. Subsequent to quarter end, the Board of Directors increased the authorization under the share repurchase program by $200 million to $268.7 million.
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 December 14, 2026 to shareholders of record at the close of business on November 30, 2026.
On October 2, 2026, 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 November 2, 2026 to shareholders of record of the preferred stock as of the close of business on October 16, 2026.
Conference Call Information
The Company will review its third 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 conference call can be accessed via the link: https://register-conf.media-server.com/register/BIca3756a1006c4dff84049e53b338c6cf. A replay of the conference call will be available for one year beginning at approximately 11:00 a.m. Hawai‘i Time on Monday, October 26, 2026. 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, 2025, which was 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.
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Bank of Hawai‘i Corporation and Subsidiaries |
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Financial Highlights |
|
Table 1a |
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|
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Three Months Ended |
|
Nine Months Ended |
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(dollars in thousands, except per share amounts) |
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
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For the Period: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating Results |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net Interest Income |
|
$ |
156,054 |
|
|
$ |
153,604 |
|
|
$ |
136,675 |
|
|
$ |
460,648 |
|
|
$ |
392,165 |
|
|
Provision for Credit Losses |
|
|
2,750 |
|
|
|
3,600 |
|
|
|
2,500 |
|
|
|
8,100 |
|
|
|
9,000 |
|
|
Total Noninterest Income |
|
|
42,706 |
|
|
|
43,299 |
|
|
|
45,966 |
|
|
|
127,337 |
|
|
|
134,819 |
|
|
Total Noninterest Expense |
|
|
112,304 |
|
|
|
111,186 |
|
|
|
112,387 |
|
|
|
339,561 |
|
|
|
333,629 |
|
|
Pre-Provision Net Revenue |
|
|
86,456 |
|
|
|
85,717 |
|
|
|
70,254 |
|
|
|
248,424 |
|
|
|
193,355 |
|
|
Net Income |
|
|
64,258 |
|
|
|
63,799 |
|
|
|
53,345 |
|
|
|
185,489 |
|
|
|
144,967 |
|
|
Net Income Available to Common Shareholders |
|
|
58,989 |
|
|
|
58,530 |
|
|
|
48,076 |
|
|
|
169,681 |
|
|
|
129,159 |
|
|
Basic Earnings Per Common Share |
|
|
1.50 |
|
|
|
1.48 |
|
|
|
1.21 |
|
|
|
4.30 |
|
|
|
3.26 |
|
|
Diluted Earnings Per Common Share |
|
|
1.49 |
|
|
|
1.47 |
|
|
|
1.20 |
|
|
|
4.27 |
|
|
|
3.24 |
|
|
Dividends Declared Per Common Share |
|
|
0.70 |
|
|
|
0.70 |
|
|
|
0.70 |
|
|
|
2.10 |
|
|
|
2.10 |
|
|
Performance Ratios |
|
|
|
|
|
|
|
|
|
|
||||||||||
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Return on Average Assets |
|
|
1.07 |
% |
|
|
1.07 |
% |
|
|
0.88 |
% |
|
|
1.04 |
% |
|
|
0.82 |
% |
|
Return on Average Shareholders’ Equity |
|
|
13.66 |
|
|
|
13.74 |
|
|
|
12.10 |
|
|
|
13.30 |
|
|
|
11.34 |
|
|
Return on Average Common Equity |
|
|
15.38 |
|
|
|
15.47 |
|
|
|
13.59 |
|
|
|
14.92 |
|
|
|
12.65 |
|
|
Efficiency Ratio 1 |
|
|
56.50 |
|
|
|
56.47 |
|
|
|
61.53 |
|
|
|
57.75 |
|
|
|
63.31 |
|
|
Net Interest Margin 2 |
|
|
2.82 |
|
|
|
2.78 |
|
|
|
2.46 |
|
|
|
2.78 |
|
|
|
2.39 |
|
|
Dividend Payout Ratio 3 |
|
|
46.67 |
|
|
|
47.30 |
|
|
|
57.85 |
|
|
|
48.84 |
|
|
|
64.42 |
|
|
Average Shareholders’ Equity to Average Assets |
|
|
7.85 |
|
|
|
7.81 |
|
|
|
7.29 |
|
|
|
7.82 |
|
|
|
7.20 |
|
|
Average Balances |
|
|
|
|
|
|
|
|
|
|
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Average Loans and Leases |
|
$ |
14,305,379 |
|
|
$ |
14,218,951 |
|
|
$ |
13,982,003 |
|
|
$ |
14,203,547 |
|
|
$ |
14,030,773 |
|
|
Average Assets |
|
|
23,768,568 |
|
|
|
23,861,848 |
|
|
|
23,995,037 |
|
|
|
23,848,046 |
|
|
|
23,744,661 |
|
|
Average Deposits |
|
|
20,662,379 |
|
|
|
20,826,923 |
|
|
|
21,068,286 |
|
|
|
20,800,655 |
|
|
|
20,813,967 |
|
|
Average Shareholders’ Equity |
|
|
1,866,297 |
|
|
|
1,862,499 |
|
|
|
1,748,576 |
|
|
|
1,865,317 |
|
|
|
1,709,788 |
|
|
Per Share of Common Stock |
|
|
|
|
|
|
|
|
|
|
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Book Value |
|
$ |
37.77 |
|
|
$ |
38.81 |
|
|
$ |
36.35 |
|
|
$ |
37.77 |
|
|
$ |
36.35 |
|
|
Tangible Book Value |
|
|
36.97 |
|
|
|
38.01 |
|
|
|
35.56 |
|
|
|
36.97 |
|
|
|
35.56 |
|
|
Market Value |
|
|
|
|
|
|
|
|
|
|
||||||||||
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Closing |
|
|
68.92 |
|
|
|
81.49 |
|
|
|
65.64 |
|
|
|
68.92 |
|
|
|
65.64 |
|
|
High |
|
|
86.31 |
|
|
|
83.18 |
|
|
|
71.90 |
|
|
|
86.31 |
|
|
|
76.00 |
|
|
Low |
|
|
68.51 |
|
|
|
70.07 |
|
|
|
60.32 |
|
|
|
67.04 |
|
|
|
57.45 |
|
|
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. |
|
Bank of Hawai‘i Corporation and Subsidiaries |
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|
Financial Highlights |
|
Table 1b |
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(dollars in thousands) |
|
September 30 |
|
June 30 |
|
December 31 |
|
September 30 |
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As of Period End: |
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|
|
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|
|
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Balance Sheet Totals |
|
|
|
|
|
|
|
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Loans and Leases |
|
$ |
14,371,336 |
|
|
$ |
14,286,625 |
|
|
$ |
14,082,050 |
|
|
$ |
14,021,579 |
|
|
Total Assets |
|
|
23,819,536 |
|
|
|
23,842,940 |
|
|
|
24,176,364 |
|
|
|
24,014,609 |
|
|
Total Deposits |
|
|
20,481,558 |
|
|
|
20,892,775 |
|
|
|
21,188,495 |
|
|
|
21,080,669 |
|
|
Other Debt |
|
|
853,098 |
|
|
|
508,124 |
|
|
|
558,176 |
|
|
|
558,201 |
|
|
Total Shareholders’ Equity |
|
|
1,826,076 |
|
|
|
1,875,467 |
|
|
|
1,851,212 |
|
|
|
1,791,183 |
|
|
Asset Quality |
|
|
|
|
|
|
|
|
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|
Non-Performing Assets |
|
$ |
43,412 |
|
|
$ |
11,478 |
|
|
$ |
14,171 |
|
|
$ |
16,864 |
|
|
Allowance for Credit Losses – Loans and Leases |
|
|
146,170 |
|
|
|
146,995 |
|
|
|
146,766 |
|
|
|
148,778 |
|
|
Allowance to Loans and Leases Outstanding 1 |
|
|
1.02 |
% |
|
|
1.03 |
% |
|
|
1.04 |
% |
|
|
1.06 |
% |
|
Capital Ratios 2 |
|
|
|
|
|
|
|
|
||||||||
|
Common Equity Tier 1 Capital Ratio 3 |
|
|
12.10 |
% |
|
|
12.12 |
% |
|
|
12.14 |
% |
|
|
11.98 |
% |
|
Tier 1 Capital Ratio |
|
|
14.41 |
|
|
|
14.45 |
|
|
|
14.49 |
|
|
|
14.34 |
|
|
Total Capital Ratio |
|
|
15.43 |
|
|
|
15.48 |
|
|
|
15.54 |
|
|
|
15.40 |
|
|
Tier 1 Leverage Ratio |
|
|
8.79 |
|
|
|
8.70 |
|
|
|
8.57 |
|
|
|
8.44 |
|
|
Total Shareholders’ Equity to Total Assets |
|
|
7.67 |
|
|
|
7.87 |
|
|
|
7.66 |
|
|
|
7.46 |
|
|
Tangible Common Equity to Tangible Assets 4 |
|
|
6.09 |
|
|
|
6.30 |
|
|
|
6.11 |
|
|
|
5.90 |
|
|
Tangible Common Equity to Risk-Weighted Assets 4 |
|
|
9.94 |
|
|
|
10.38 |
|
|
|
10.35 |
|
|
|
9.95 |
|
|
Non-Financial Data |
|
|
|
|
|
|
|
|
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|
Full-Time Equivalent Employees 5 |
|
|
1,865 |
|
|
|
1,910 |
|
|
|
1,877 |
|
|
|
1,905 |
|
|
Branches |
|
|
52 |
|
|
|
52 |
|
|
|
51 |
|
|
|
51 |
|
|
ATMs |
|
|
308 |
|
|
|
315 |
|
|
|
320 |
|
|
|
322 |
|
|
1 |
The numerator comprises the Allowance for Credit Losses – Loans and Leases. |
|
2 |
Regulatory capital ratios as of September 30, 2026 are preliminary. |
|
3 |
Capital ratio as of December 31, 2025 has been updated to reflect final reported ratio. |
|
4 |
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 8 “Reconciliation of Non-GAAP Financial Measures”. |
|
5 |
Full-time equivalent employees as of June 30, 2026 includes summer interns. |
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Bank of Hawai‘i Corporation and Subsidiaries |
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Consolidated Statements of Income |
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Table 2 |
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|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
(dollars in thousands, except per share amounts) |
|
September 30, 2026 |
|
June 30, 2026 |
|
September 30, 2025 |
|
September 30, 2026 |
|
September 30, 2025 |
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|
Interest Income |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest and Fees on Loans and Leases |
|
$ |
172,271 |
|
|
$ |
168,624 |
|
|
$ |
169,411 |
|
|
$ |
505,364 |
|
|
$ |
499,272 |
|
|
Income on Investment Securities |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Available-for-Sale |
|
|
36,313 |
|
|
|
36,397 |
|
|
|
29,702 |
|
|
|
107,285 |
|
|
|
81,077 |
|
|
Held-to-Maturity |
|
|
17,460 |
|
|
|
18,056 |
|
|
|
19,332 |
|
|
|
54,057 |
|
|
|
59,458 |
|
|
Cash and Cash Equivalents |
|
|
1,674 |
|
|
|
1,726 |
|
|
|
8,195 |
|
|
|
6,729 |
|
|
|
17,472 |
|
|
Other |
|
|
1,431 |
|
|
|
1,313 |
|
|
|
1,068 |
|
|
|
4,037 |
|
|
|
3,250 |
|
|
Total Interest Income |
|
|
229,149 |
|
|
|
226,116 |
|
|
|
227,708 |
|
|
|
677,472 |
|
|
|
660,529 |
|
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Deposits |
|
|
65,950 |
|
|
|
65,804 |
|
|
|
84,590 |
|
|
|
196,640 |
|
|
|
248,758 |
|
|
Securities Sold Under Agreements to Repurchase |
|
|
496 |
|
|
|
491 |
|
|
|
496 |
|
|
|
1,473 |
|
|
|
1,731 |
|
|
Other Debt |
|
|
6,649 |
|
|
|
6,217 |
|
|
|
5,947 |
|
|
|
18,711 |
|
|
|
17,875 |
|
|
Total Interest Expense |
|
|
73,095 |
|
|
|
72,512 |
|
|
|
91,033 |
|
|
|
216,824 |
|
|
|
268,364 |
|
|
Net Interest Income |
|
|
156,054 |
|
|
|
153,604 |
|
|
|
136,675 |
|
|
|
460,648 |
|
|
|
392,165 |
|
|
Provision for Credit Losses |
|
|
2,750 |
|
|
|
3,600 |
|
|
|
2,500 |
|
|
|
8,100 |
|
|
|
9,000 |
|
|
Net Interest Income After Provision for Credit Losses |
|
|
153,304 |
|
|
|
150,004 |
|
|
|
134,175 |
|
|
|
452,548 |
|
|
|
383,165 |
|
|
Noninterest Income |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Trust and Asset Management |
|
|
13,420 |
|
|
|
13,712 |
|
|
|
12,598 |
|
|
|
39,577 |
|
|
|
36,436 |
|
|
Fees, Exchange, and Other Service Charges |
|
|
10,839 |
|
|
|
11,127 |
|
|
|
15,219 |
|
|
|
32,894 |
|
|
|
44,039 |
|
|
Service Charges on Deposit Accounts |
|
|
9,052 |
|
|
|
8,353 |
|
|
|
8,510 |
|
|
|
25,845 |
|
|
|
24,888 |
|
|
Bank-Owned Life Insurance |
|
|
3,877 |
|
|
|
3,923 |
|
|
|
3,681 |
|
|
|
11,947 |
|
|
|
11,006 |
|
|
Annuity and Insurance |
|
|
2,117 |
|
|
|
2,017 |
|
|
|
1,095 |
|
|
|
5,603 |
|
|
|
4,087 |
|
|
Mortgage Banking |
|
|
906 |
|
|
|
839 |
|
|
|
906 |
|
|
|
2,621 |
|
|
|
2,743 |
|
|
Investment Securities Losses, Net |
|
|
(1,493 |
) |
|
|
(1,287 |
) |
|
|
(1,945 |
) |
|
|
(4,052 |
) |
|
|
(4,678 |
) |
|
Other |
|
|
3,988 |
|
|
|
4,615 |
|
|
|
5,902 |
|
|
|
12,902 |
|
|
|
16,298 |
|
|
Total Noninterest Income |
|
|
42,706 |
|
|
|
43,299 |
|
|
|
45,966 |
|
|
|
127,337 |
|
|
|
134,819 |
|
|
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Salaries and Benefits |
|
|
62,308 |
|
|
|
62,642 |
|
|
|
62,905 |
|
|
|
193,407 |
|
|
|
187,097 |
|
|
Net Equipment |
|
|
11,307 |
|
|
|
10,604 |
|
|
|
10,285 |
|
|
|
32,522 |
|
|
|
30,454 |
|
|
Net Occupancy |
|
|
11,197 |
|
|
|
10,868 |
|
|
|
10,932 |
|
|
|
32,847 |
|
|
|
31,990 |
|
|
Professional Fees |
|
|
5,571 |
|
|
|
5,276 |
|
|
|
4,022 |
|
|
|
15,073 |
|
|
|
12,549 |
|
|
Data Processing |
|
|
5,474 |
|
|
|
5,463 |
|
|
|
5,603 |
|
|
|
16,518 |
|
|
|
16,326 |
|
|
FDIC Insurance |
|
|
3,004 |
|
|
|
2,978 |
|
|
|
3,508 |
|
|
|
8,701 |
|
|
|
8,790 |
|
|
Other |
|
|
13,443 |
|
|
|
13,355 |
|
|
|
15,132 |
|
|
|
40,493 |
|
|
|
46,423 |
|
|
Total Noninterest Expense |
|
|
112,304 |
|
|
|
111,186 |
|
|
|
112,387 |
|
|
|
339,561 |
|
|
|
333,629 |
|
|
Income Before Provision for Income Taxes |
|
|
83,706 |
|
|
|
82,117 |
|
|
|
67,754 |
|
|
|
240,324 |
|
|
|
184,355 |
|
|
Provision for Income Taxes |
|
|
19,448 |
|
|
|
18,318 |
|
|
|
14,409 |
|
|
|
54,835 |
|
|
|
39,388 |
|
|
Net Income |
|
$ |
64,258 |
|
|
$ |
63,799 |
|
|
$ |
53,345 |
|
|
$ |
185,489 |
|
|
$ |
144,967 |
|
|
Preferred Stock Dividends |
|
|
5,269 |
|
|
|
5,269 |
|
|
|
5,269 |
|
|
|
15,808 |
|
|
|
15,808 |
|
|
Net Income Available to Common Shareholders |
|
$ |
58,989 |
|
|
$ |
58,530 |
|
|
$ |
48,076 |
|
|
$ |
169,681 |
|
|
$ |
129,159 |
|
|
Basic Earnings Per Common Share |
|
$ |
1.50 |
|
|
$ |
1.48 |
|
|
$ |
1.21 |
|
|
$ |
4.30 |
|
|
$ |
3.26 |
|
|
Diluted Earnings Per Common Share |
|
$ |
1.49 |
|
|
$ |
1.47 |
|
|
$ |
1.20 |
|
|
$ |
4.27 |
|
|
$ |
3.24 |
|
|
Dividends Declared Per Common Share |
|
$ |
0.70 |
|
|
$ |
0.70 |
|
|
$ |
0.70 |
|
|
$ |
2.10 |
|
|
$ |
2.10 |
|
|
Basic Weighted Average Common Shares |
|
|
39,316,506 |
|
|
|
39,513,447 |
|
|
|
39,655,741 |
|
|
|
39,464,588 |
|
|
|
39,611,372 |
|
|
Diluted Weighted Average Common Shares |
|
|
39,553,225 |
|
|
|
39,734,782 |
|
|
|
39,980,931 |
|
|
|
39,732,180 |
|
|
|
39,919,998 |
|
|
Bank of Hawai‘i Corporation and Subsidiaries |
|
|
||||||||||||||
|
Consolidated Statements of Condition |
|
Table 3 |
||||||||||||||
|
(dollars in thousands, except per share amounts) |
|
September 30, 2026 |
|
June 30, 2026 |
|
December 31, 2025 |
|
September 30, 2025 |
||||||||
|
Assets |
|
|
|
|
|
|
|
|
||||||||
|
Cash and Cash Equivalents |
|
$ |
442,032 |
|
|
$ |
452,814 |
|
|
$ |
946,520 |
|
|
$ |
985,223 |
|
|
Investment Securities |
|
|
|
|
|
|
|
|
||||||||
|
Available-for-Sale |
|
|
3,523,442 |
|
|
|
3,618,515 |
|
|
|
3,510,652 |
|
|
|
3,280,410 |
|
|
Held-to-Maturity (Fair Value of $3,201,942; $3,452,980; $3,651,966; and $3,717,573) |
|
|
3,974,033 |
|
|
|
4,070,908 |
|
|
|
4,245,681 |
|
|
|
4,340,032 |
|
|
Loans Held for Sale |
|
|
3,971 |
|
|
|
5,089 |
|
|
|
4,369 |
|
|
|
1,236 |
|
|
Loans and Leases |
|
|
14,371,336 |
|
|
|
14,286,625 |
|
|
|
14,082,050 |
|
|
|
14,021,579 |
|
|
Allowance for Credit Losses |
|
|
(146,170 |
) |
|
|
(146,995 |
) |
|
|
(146,766 |
) |
|
|
(148,778 |
) |
|
Net Loans and Leases |
|
|
14,225,166 |
|
|
|
14,139,630 |
|
|
|
13,935,284 |
|
|
|
13,872,801 |
|
|
Premises and Equipment, Net |
|
|
224,276 |
|
|
|
223,463 |
|
|
|
199,747 |
|
|
|
196,093 |
|
|
Operating Lease Right-of-Use Assets |
|
|
87,449 |
|
|
|
84,519 |
|
|
|
83,424 |
|
|
|
82,804 |
|
|
Accrued Interest Receivable |
|
|
71,749 |
|
|
|
70,646 |
|
|
|
69,899 |
|
|
|
69,224 |
|
|
Mortgage Servicing Rights |
|
|
16,244 |
|
|
|
16,626 |
|
|
|
17,455 |
|
|
|
17,927 |
|
|
Goodwill |
|
|
31,517 |
|
|
|
31,517 |
|
|
|
31,517 |
|
|
|
31,517 |
|
|
Bank-Owned Life Insurance |
|
|
511,349 |
|
|
|
508,869 |
|
|
|
499,795 |
|
|
|
494,041 |
|
|
Other Assets |
|
|
708,308 |
|
|
|
620,344 |
|
|
|
632,021 |
|
|
|
643,301 |
|
|
Total Assets |
|
$ |
23,819,536 |
|
|
$ |
23,842,940 |
|
|
$ |
24,176,364 |
|
|
$ |
24,014,609 |
|
|
Liabilities |
|
|
|
|
|
|
|
|
||||||||
|
Deposits |
|
|
|
|
|
|
|
|
||||||||
|
Noninterest-Bearing Demand |
|
$ |
5,429,216 |
|
|
$ |
5,575,291 |
|
|
$ |
5,755,371 |
|
|
$ |
5,400,943 |
|
|
Interest-Bearing Demand |
|
|
3,739,272 |
|
|
|
4,075,694 |
|
|
|
3,910,952 |
|
|
|
3,813,921 |
|
|
Savings |
|
|
8,595,032 |
|
|
|
8,705,102 |
|
|
|
8,741,090 |
|
|
|
8,814,451 |
|
|
Time |
|
|
2,718,038 |
|
|
|
2,536,688 |
|
|
|
2,781,082 |
|
|
|
3,051,354 |
|
|
Total Deposits |
|
|
20,481,558 |
|
|
|
20,892,775 |
|
|
|
21,188,495 |
|
|
|
21,080,669 |
|
|
Securities Sold Under Agreements to Repurchase |
|
|
50,000 |
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
50,000 |
|
|
Other Debt |
|
|
853,098 |
|
|
|
508,124 |
|
|
|
558,176 |
|
|
|
558,201 |
|
|
Operating Lease Liabilities |
|
|
96,499 |
|
|
|
93,568 |
|
|
|
92,402 |
|
|
|
91,690 |
|
|
Retirement Benefits Payable |
|
|
25,236 |
|
|
|
25,496 |
|
|
|
20,139 |
|
|
|
23,352 |
|
|
Accrued Interest Payable |
|
|
16,675 |
|
|
|
16,390 |
|
|
|
22,370 |
|
|
|
27,580 |
|
|
Other Liabilities |
|
|
470,394 |
|
|
|
381,120 |
|
|
|
393,570 |
|
|
|
391,934 |
|
|
Total Liabilities |
|
|
21,993,460 |
|
|
|
21,967,473 |
|
|
|
22,325,152 |
|
|
|
22,223,426 |
|
|
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: September 30, 2026 – 59,035,722 / 39,209,600; June 30, 2026 – 59,020,336 / 39,439,677; December 31, 2025 – 58,780,253 / 39,725,698 and September 30, 2025 – 58,779,666 / 39,785,201) |
|
|
590 |
|
|
|
590 |
|
|
|
587 |
|
|
|
587 |
|
|
Capital Surplus |
|
|
679,084 |
|
|
|
675,654 |
|
|
|
664,781 |
|
|
|
659,922 |
|
|
Accumulated Other Comprehensive Loss |
|
|
(307,653 |
) |
|
|
(243,475 |
) |
|
|
(244,438 |
) |
|
|
(276,251 |
) |
|
Retained Earnings |
|
|
2,291,275 |
|
|
|
2,260,152 |
|
|
|
2,205,707 |
|
|
|
2,178,263 |
|
|
Treasury Stock, at Cost (Shares: September 30, 2026 – 19,826,122; June 30, 2026 – 19,580,659; December 31, 2025 – 19,054,555; and September 30, 2025 – 18,994,465) |
|
|
(1,182,220 |
) |
|
|
(1,162,454 |
) |
|
|
(1,120,425 |
) |
|
|
(1,116,338 |
) |
|
Total Shareholders’ Equity |
|
|
1,826,076 |
|
|
|
1,875,467 |
|
|
|
1,851,212 |
|
|
|
1,791,183 |
|
|
Total Liabilities and Shareholders’ Equity |
|
$ |
23,819,536 |
|
|
$ |
23,842,940 |
|
|
$ |
24,176,364 |
|
|
$ |
24,014,609 |
|
|
Bank of Hawai‘i Corporation and Subsidiaries |
||||||||||||||||||||
|
Average Balances and Interest Rates – Taxable-Equivalent Basis 1 |
Table 4a |
|||||||||||||||||||
|
|
Three Months Ended September 30, 2026 |
|
Three Months Ended June 30, 2026 |
|
Three Months Ended September 30, 2025 |
|||||||||||||||
|
(dollars in millions) |
Average |
Income/ |
Yield/ |
|
Average |
Income/ |
Yield/ |
|
Average |
Income/ |
Yield/ |
|||||||||
|
Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Cash and Cash Equivalents |
$ |
187.7 |
$ |
1.7 |
3.49 |
% |
|
$ |
196.2 |
$ |
1.7 |
3.48 |
% |
|
$ |
744.3 |
$ |
8.2 |
4.31 |
% |
|
Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Available-for-Sale |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Taxable |
|
3,602.0 |
|
36.0 |
3.99 |
|
|
|
3,669.5 |
|
36.1 |
3.93 |
|
|
|
3,157.8 |
|
29.3 |
3.70 |
|
|
Non-Taxable |
|
31.6 |
|
0.4 |
5.14 |
|
|
|
31.7 |
|
0.4 |
5.08 |
|
|
|
32.4 |
|
0.5 |
5.98 |
|
|
Held-to-Maturity |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Taxable |
|
3,995.2 |
|
17.3 |
1.74 |
|
|
|
4,091.6 |
|
17.9 |
1.75 |
|
|
|
4,363.9 |
|
19.2 |
1.76 |
|
|
Non-Taxable |
|
32.9 |
|
0.2 |
1.92 |
|
|
|
33.4 |
|
0.2 |
2.10 |
|
|
|
33.8 |
|
0.2 |
2.10 |
|
|
Total Investment Securities |
|
7,661.7 |
|
53.9 |
2.81 |
|
|
|
7,826.2 |
|
54.6 |
2.79 |
|
|
|
7,587.9 |
|
49.2 |
2.59 |
|
|
Loans Held for Sale |
|
2.9 |
|
0.0 |
5.83 |
|
|
|
2.7 |
|
0.0 |
6.20 |
|
|
|
1.6 |
|
0.0 |
5.92 |
|
|
Loans and Leases 3 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Commercial Mortgage |
|
4,393.9 |
|
57.1 |
5.15 |
|
|
|
4,314.9 |
|
55.7 |
5.17 |
|
|
|
4,016.3 |
|
54.3 |
5.36 |
|
|
Commercial and Industrial |
|
1,656.2 |
|
20.6 |
4.92 |
|
|
|
1,624.6 |
|
19.5 |
4.83 |
|
|
|
1,600.7 |
|
20.5 |
5.09 |
|
|
Construction |
|
145.7 |
|
2.2 |
6.09 |
|
|
|
209.7 |
|
3.3 |
6.30 |
|
|
|
394.4 |
|
7.3 |
7.32 |
|
|
Commercial Lease Financing |
|
83.6 |
|
0.9 |
4.47 |
|
|
|
84.6 |
|
0.9 |
4.26 |
|
|
|
93.0 |
|
1.0 |
4.11 |
|
|
Residential Mortgage |
|
4,854.9 |
|
50.2 |
4.13 |
|
|
|
4,812.6 |
|
48.9 |
4.06 |
|
|
|
4,638.1 |
|
46.7 |
4.02 |
|
|
Home Equity |
|
2,080.5 |
|
24.5 |
4.68 |
|
|
|
2,085.3 |
|
24.1 |
4.63 |
|
|
|
2,129.6 |
|
23.9 |
4.46 |
|
|
Automobile |
|
670.9 |
|
9.7 |
5.75 |
|
|
|
677.4 |
|
9.5 |
5.65 |
|
|
|
706.9 |
|
9.5 |
5.35 |
|
|
Other |
|
419.7 |
|
8.2 |
7.78 |
|
|
|
409.9 |
|
7.9 |
7.74 |
|
|
|
403.0 |
|
7.7 |
7.63 |
|
|
Total Loans and Leases |
|
14,305.4 |
|
173.4 |
4.82 |
|
|
|
14,219.0 |
|
169.8 |
4.79 |
|
|
|
13,982.0 |
|
170.9 |
4.86 |
|
|
Other |
|
83.7 |
|
1.5 |
6.85 |
|
|
|
82.8 |
|
1.4 |
6.34 |
|
|
|
65.3 |
|
1.1 |
6.54 |
|
|
Total Earning Assets |
|
22,241.4 |
|
230.5 |
4.13 |
|
|
|
22,326.9 |
|
227.5 |
4.08 |
|
|
|
22,381.1 |
|
229.4 |
4.08 |
|
|
Non-Earning Assets |
|
1,527.2 |
|
|
|
|
1,534.9 |
|
|
|
|
1,613.9 |
|
|
||||||
|
Total Assets |
$ |
23,768.6 |
|
|
|
$ |
23,861.8 |
|
|
|
$ |
23,995.0 |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Interest-Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Interest-Bearing Deposits |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Demand |
$ |
3,836.6 |
$ |
7.1 |
0.73 |
% |
|
$ |
3,781.7 |
$ |
7.4 |
0.78 |
% |
|
$ |
3,781.0 |
$ |
7.8 |
0.81 |
% |
|
Savings |
|
8,798.7 |
|
41.5 |
1.87 |
|
|
|
8,750.0 |
|
39.9 |
1.83 |
|
|
|
8,831.0 |
|
50.6 |
2.28 |
|
|
Time |
|
2,555.8 |
|
17.3 |
2.69 |
|
|
|
2,707.6 |
|
18.5 |
2.75 |
|
|
|
3,057.6 |
|
26.2 |
3.40 |
|
|
Total Interest-Bearing Deposits |
|
15,191.1 |
|
65.9 |
1.72 |
|
|
|
15,239.3 |
|
65.8 |
1.73 |
|
|
|
15,669.6 |
|
84.6 |
2.14 |
|
|
Securities Sold Under Agreements to Repurchase |
|
50.0 |
|
0.5 |
3.89 |
|
|
|
50.0 |
|
0.5 |
3.88 |
|
|
|
50.0 |
|
0.5 |
3.89 |
|
|
Other Debt |
|
627.8 |
|
6.7 |
4.19 |
|
|
|
593.3 |
|
6.2 |
4.20 |
|
|
|
558.3 |
|
6.0 |
4.23 |
|
|
Total Interest-Bearing Liabilities |
|
15,868.9 |
|
73.1 |
1.83 |
|
|
|
15,882.6 |
|
72.5 |
1.83 |
|
|
|
16,277.9 |
|
91.1 |
2.22 |
|
|
Net Interest Income |
|
$ |
157.4 |
|
|
|
$ |
155.0 |
|
|
|
$ |
138.3 |
|
||||||
|
Interest Rate Spread |
|
|
2.30 |
% |
|
|
|
2.25 |
% |
|
|
|
1.86 |
% |
||||||
|
Net Interest Margin |
|
|
2.82 |
% |
|
|
|
2.78 |
% |
|
|
|
2.46 |
% |
||||||
|
Noninterest-Bearing Demand Deposits |
|
5,471.3 |
|
|
|
|
5,587.6 |
|
|
|
|
5,398.7 |
|
|
||||||
|
Other Liabilities |
|
562.1 |
|
|
|
|
529.1 |
|
|
|
|
569.8 |
|
|
||||||
|
Shareholders’ Equity |
|
1,866.3 |
|
|
|
|
1,862.5 |
|
|
|
|
1,748.6 |
|
|
||||||
|
Total Liabilities and Shareholders’ Equity |
$ |
23,768.6 |
|
|
|
$ |
23,861.8 |
|
|
|
$ |
23,995.0 |
|
|
||||||
|
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, $1.4 million, and $1.7 million for the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively. |
|
3 |
Non-performing loans and leases are included in the respective average loan and lease balances. |
|
Bank of Hawai‘i Corporation and Subsidiaries |
|||||||||||||
|
Average Balances and Interest Rates – Taxable-Equivalent Basis 1 |
Table 4b |
||||||||||||
|
|
Nine Months Ended September 30, 2026 |
|
Nine Months Ended September 30, 2025 |
||||||||||
|
(dollars in millions) |
Average |
Income/ |
Yield/ |
|
Average |
Income/ |
Yield/ |
||||||
|
Earning Assets |
|
|
|
|
|
|
|
||||||
|
Cash and Cash Equivalents |
$ |
251.4 |
$ |
6.7 |
3.53 |
% |
|
$ |
533.5 |
$ |
17.5 |
4.32 |
% |
|
Investment Securities |
|
|
|
|
|
|
|
||||||
|
Available-for-Sale |
|
|
|
|
|
|
|
||||||
|
Taxable |
|
3,623.2 |
|
106.3 |
3.91 |
|
|
|
2,979.8 |
|
80.2 |
3.59 |
|
|
Non-Taxable |
|
31.8 |
|
1.2 |
5.10 |
|
|
|
27.0 |
|
1.2 |
5.85 |
|
|
Held-to-Maturity |
|
|
|
|
|
|
|
||||||
|
Taxable |
|
4,086.7 |
|
53.7 |
1.75 |
|
|
|
4,457.6 |
|
59.0 |
1.77 |
|
|
Non-Taxable |
|
33.3 |
|
0.5 |
2.04 |
|
|
|
34.0 |
|
0.5 |
2.10 |
|
|
Total Investment Securities |
|
7,775.0 |
|
161.7 |
2.77 |
|
|
|
7,498.4 |
|
140.9 |
2.51 |
|
|
Loans Held for Sale |
|
3.1 |
|
0.1 |
5.71 |
|
|
|
2.0 |
|
0.1 |
5.89 |
|
|
Loans and Leases 3 |
|
|
|
|
|
|
|
||||||
|
Commercial Mortgage |
|
4,310.4 |
|
166.7 |
5.17 |
|
|
|
4,018.9 |
|
160.5 |
5.34 |
|
|
Commercial and Industrial |
|
1,621.7 |
|
58.8 |
4.85 |
|
|
|
1,657.1 |
|
62.9 |
5.07 |
|
|
Construction |
|
190.1 |
|
9.0 |
6.31 |
|
|
|
366.6 |
|
20.0 |
7.28 |
|
|
Commercial Lease Financing |
|
85.0 |
|
2.8 |
4.34 |
|
|
|
92.5 |
|
2.8 |
4.00 |
|
|
Residential Mortgage |
|
4,816.7 |
|
146.9 |
4.07 |
|
|
|
4,627.2 |
|
137.1 |
3.95 |
|
|
Home Equity |
|
2,089.6 |
|
72.2 |
4.62 |
|
|
|
2,141.8 |
|
69.7 |
4.35 |
|
|
Automobile |
|
677.6 |
|
28.7 |
5.66 |
|
|
|
729.7 |
|
28.3 |
5.18 |
|
|
Other |
|
412.4 |
|
23.9 |
7.76 |
|
|
|
397.0 |
|
22.3 |
7.52 |
|
|
Total Loans and Leases |
|
14,203.5 |
|
509.0 |
4.79 |
|
|
|
14,030.8 |
|
503.6 |
4.80 |
|
|
Other |
|
82.9 |
|
4.1 |
6.50 |
|
|
|
65.2 |
|
3.2 |
6.64 |
|
|
Total Earning Assets |
|
22,315.9 |
|
681.6 |
4.08 |
|
|
|
22,129.9 |
|
665.3 |
4.01 |
|
|
Non-Earning Assets |
|
1,532.1 |
|
|
|
|
1,614.8 |
|
|
||||
|
Total Assets |
$ |
23,848.0 |
|
|
|
$ |
23,744.7 |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||
|
Interest-Bearing Liabilities |
|
|
|
|
|
|
|
||||||
|
Interest-Bearing Deposits |
|
|
|
|
|
|
|
||||||
|
Demand |
$ |
3,819.1 |
$ |
21.1 |
0.74 |
% |
|
$ |
3,753.3 |
$ |
22.4 |
0.80 |
% |
|
Savings |
|
8,739.5 |
|
120.0 |
1.84 |
|
|
|
8,652.4 |
|
146.0 |
2.25 |
|
|
Time |
|
2,671.6 |
|
55.5 |
2.78 |
|
|
|
3,048.4 |
|
80.4 |
3.53 |
|
|
Total Interest-Bearing Deposits |
|
15,230.2 |
|
196.6 |
1.73 |
|
|
|
15,454.1 |
|
248.8 |
2.15 |
|
|
Securities Sold Under Agreements to Repurchase |
|
50.0 |
|
1.5 |
3.89 |
|
|
|
58.8 |
|
1.7 |
3.88 |
|
|
Other Debt |
|
594.2 |
|
18.8 |
4.20 |
|
|
|
564.9 |
|
17.8 |
4.23 |
|
|
Total Interest-Bearing Liabilities |
|
15,874.4 |
|
216.9 |
1.83 |
|
|
|
16,077.8 |
|
268.3 |
2.23 |
|
|
Net Interest Income |
|
$ |
464.7 |
|
|
|
$ |
397.0 |
|
||||
|
Interest Rate Spread |
|
|
2.25 |
% |
|
|
|
1.78 |
% |
||||
|
Net Interest Margin |
|
|
2.78 |
% |
|
|
|
2.39 |
% |
||||
|
Noninterest-Bearing Demand Deposits |
|
5,570.5 |
|
|
|
|
5,359.9 |
|
|
||||
|
Other Liabilities |
|
537.8 |
|
|
|
|
597.2 |
|
|
||||
|
Shareholders’ Equity |
|
1,865.3 |
|
|
|
|
1,709.8 |
|
|
||||
|
Total Liabilities and Shareholders’ Equity |
$ |
23,848.0 |
|
|
|
$ |
23,744.7 |
|
|
||||
|
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 $4.1 million and $4.8 million for the nine months ended September 30, 2026 and September 30, 2025, respectively. |
|
3 |
Non-performing loans and leases are included in the respective average loan and lease balances. |
|
Bank of Hawai‘i Corporation and Subsidiaries |
||||||||||||||
|
Loan and Lease Portfolio Balances |
|
Table 5 |
||||||||||||
|
(dollars in thousands) |
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|||||
|
Commercial |
|
|
|
|
|
|
|
|
|
|||||
|
Commercial Mortgage |
$ |
4,467,245 |
|
$ |
4,319,221 |
|
$ |
4,341,448 |
|
$ |
4,205,791 |
|
$ |
4,040,711 |
|
Commercial and Industrial |
|
1,652,329 |
|
|
1,676,535 |
|
|
1,575,207 |
|
|
1,584,245 |
|
|
1,581,232 |
|
Construction |
|
117,919 |
|
|
164,504 |
|
|
204,993 |
|
|
208,584 |
|
|
380,944 |
|
Lease Financing |
|
81,556 |
|
|
85,338 |
|
|
84,651 |
|
|
88,303 |
|
|
92,213 |
|
Total Commercial |
|
6,319,049 |
|
|
6,245,598 |
|
|
6,206,299 |
|
|
6,086,923 |
|
|
6,095,100 |
|
Consumer |
|
|
|
|
|
|
|
|
|
|||||
|
Residential Mortgage |
|
4,857,923 |
|
|
4,864,875 |
|
|
4,800,256 |
|
|
4,775,502 |
|
|
4,685,214 |
|
Home Equity |
|
2,091,468 |
|
|
2,079,127 |
|
|
2,095,521 |
|
|
2,114,809 |
|
|
2,129,599 |
|
Automobile |
|
671,597 |
|
|
674,899 |
|
|
680,570 |
|
|
690,376 |
|
|
699,244 |
|
Other |
|
431,299 |
|
|
422,126 |
|
|
410,165 |
|
|
414,440 |
|
|
412,422 |
|
Total Consumer |
|
8,052,287 |
|
|
8,041,027 |
|
|
7,986,512 |
|
|
7,995,127 |
|
|
7,926,479 |
|
Total Loans and Leases |
$ |
14,371,336 |
|
$ |
14,286,625 |
|
$ |
14,192,811 |
|
$ |
14,082,050 |
|
$ |
14,021,579 |
|
Deposits |
||||||||||||||
|
(dollars in thousands) |
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|||||
|
Consumer |
$ |
10,432,007 |
|
$ |
10,454,082 |
|
$ |
10,530,223 |
|
$ |
10,466,617 |
|
$ |
10,393,932 |
|
Commercial |
|
7,977,291 |
|
|
8,167,262 |
|
|
8,340,279 |
|
|
8,597,265 |
|
|
8,348,396 |
|
Public and Other |
|
2,072,260 |
|
|
2,271,431 |
|
|
2,087,428 |
|
|
2,124,613 |
|
|
2,338,341 |
|
Total Deposits |
$ |
20,481,558 |
|
$ |
20,892,775 |
|
$ |
20,957,930 |
|
$ |
21,188,495 |
|
$ |
21,080,669 |
|
Bank of Hawai‘i Corporation and Subsidiaries |
|||||||||||||||||||
|
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More |
Table 6 |
||||||||||||||||||
|
(dollars in thousands) |
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
||||||||||
|
Non-Performing Assets |
|
|
|
|
|
|
|
|
|
||||||||||
|
Non-Accrual Loans and Leases |
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial |
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial Mortgage |
$ |
32,500 |
|
|
$ |
– |
|
|
$ |
– |
|
|
$ |
2,085 |
|
|
$ |
2,498 |
|
|
Commercial and Industrial |
|
1,622 |
|
|
|
1,734 |
|
|
|
1,860 |
|
|
|
1,940 |
|
|
|
3,506 |
|
|
Total Commercial |
|
34,122 |
|
|
|
1,734 |
|
|
|
1,860 |
|
|
|
4,025 |
|
|
|
6,004 |
|
|
Consumer |
|
|
|
|
|
|
|
|
|
||||||||||
|
Residential Mortgage |
|
5,068 |
|
|
|
5,348 |
|
|
|
5,410 |
|
|
|
5,382 |
|
|
|
5,628 |
|
|
Home Equity |
|
4,051 |
|
|
|
4,225 |
|
|
|
4,525 |
|
|
|
4,469 |
|
|
|
5,107 |
|
|
Total Consumer |
|
9,119 |
|
|
|
9,573 |
|
|
|
9,935 |
|
|
|
9,851 |
|
|
|
10,735 |
|
|
Total Non-Accrual Loans and Leases |
|
43,241 |
|
|
|
11,307 |
|
|
|
11,795 |
|
|
|
13,876 |
|
|
|
16,739 |
|
|
Foreclosed Real Estate |
|
171 |
|
|
|
171 |
|
|
|
295 |
|
|
|
295 |
|
|
|
125 |
|
|
Total Non-Performing Assets |
$ |
43,412 |
|
|
$ |
11,478 |
|
|
$ |
12,090 |
|
|
$ |
14,171 |
|
|
$ |
16,864 |
|
|
Accruing Loans and Leases Past Due 90 Days or More |
|
|
|
|
|
|
|
|
|
||||||||||
|
Consumer |
|
|
|
|
|
|
|
|
|
||||||||||
|
Residential Mortgage |
$ |
12,125 |
|
|
$ |
8,887 |
|
|
$ |
10,733 |
|
|
$ |
8,834 |
|
|
$ |
7,456 |
|
|
Home Equity |
|
2,845 |
|
|
|
3,503 |
|
|
|
1,556 |
|
|
|
2,152 |
|
|
|
2,765 |
|
|
Automobile |
|
919 |
|
|
|
763 |
|
|
|
672 |
|
|
|
520 |
|
|
|
525 |
|
|
Other |
|
679 |
|
|
|
965 |
|
|
|
764 |
|
|
|
753 |
|
|
|
578 |
|
|
Total Consumer |
|
16,568 |
|
|
|
14,118 |
|
|
|
13,725 |
|
|
|
12,259 |
|
|
|
11,324 |
|
|
Total Accruing Loans and Leases Past Due 90 Days or More |
$ |
16,568 |
|
|
$ |
14,118 |
|
|
$ |
13,725 |
|
|
$ |
12,259 |
|
|
$ |
11,324 |
|
|
Total Loans and Leases |
$ |
14,371,336 |
|
|
$ |
14,286,625 |
|
|
$ |
14,192,811 |
|
|
$ |
14,082,050 |
|
|
$ |
14,021,579 |
|
|
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases |
|
0.30 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.10 |
% |
|
|
0.12 |
% |
|
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate |
|
0.30 |
% |
|
|
0.08 |
% |
|
|
0.09 |
% |
|
|
0.10 |
% |
|
|
0.12 |
% |
|
Ratio of Non-Performing Assets to Total Assets |
|
0.18 |
% |
|
|
0.05 |
% |
|
|
0.05 |
% |
|
|
0.06 |
% |
|
|
0.07 |
% |
|
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate |
|
0.54 |
% |
|
|
0.03 |
% |
|
|
0.03 |
% |
|
|
0.07 |
% |
|
|
0.10 |
% |
|
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate |
|
0.12 |
% |
|
|
0.12 |
% |
|
|
0.13 |
% |
|
|
0.13 |
% |
|
|
0.14 |
% |
|
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases and Foreclosed Real Estate |
|
0.42 |
% |
|
|
0.18 |
% |
|
|
0.18 |
% |
|
|
0.19 |
% |
|
|
0.20 |
% |
|
Bank of Hawai‘i Corporation and Subsidiaries |
|
|||||||||||||||
|
Reserve for Credit Losses |
|
Table 7 |
||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
|
(dollars in thousands) |
September 30, |
June 30, |
September 30, |
|
September 30, |
September 30, |
||||||||||
|
Balance at Beginning of Period |
$ |
149,276 |
|
$ |
149,078 |
|
$ |
150,128 |
|
|
$ |
148,403 |
|
$ |
150,649 |
|
|
Loans and Leases Charged-Off |
|
|
|
|
|
|
||||||||||
|
Commercial |
|
|
|
|
|
|
||||||||||
|
Commercial and Industrial |
|
(168 |
) |
|
(385 |
) |
|
(171 |
) |
|
|
(783 |
) |
|
(1,776 |
) |
|
Consumer |
|
|
|
|
|
|
||||||||||
|
Residential Mortgage |
|
(16 |
) |
|
— |
|
|
— |
|
|
|
(31 |
) |
|
— |
|
|
Home Equity |
|
(253 |
) |
|
(219 |
) |
|
(28 |
) |
|
|
(478 |
) |
|
(258 |
) |
|
Automobile |
|
(1,799 |
) |
|
(1,735 |
) |
|
(1,368 |
) |
|
|
(4,951 |
) |
|
(4,372 |
) |
|
Other |
|
(2,477 |
) |
|
(2,400 |
) |
|
(2,392 |
) |
|
|
(7,271 |
) |
|
(7,273 |
) |
|
Total Loans and Leases Charged-Off |
|
(4,713 |
) |
|
(4,739 |
) |
|
(3,959 |
) |
|
|
(13,514 |
) |
|
(13,679 |
) |
|
Recoveries on Loans and Leases Previously Charged-Off |
|
|
|
|
|
|
||||||||||
|
Commercial |
|
|
|
|
|
|
||||||||||
|
Commercial Mortgage |
|
— |
|
|
— |
|
|
— |
|
|
|
1,617 |
|
|
— |
|
|
Commercial and Industrial |
|
41 |
|
|
72 |
|
|
98 |
|
|
|
166 |
|
|
253 |
|
|
Consumer |
|
|
|
|
|
|
||||||||||
|
Residential Mortgage |
|
8 |
|
|
22 |
|
|
58 |
|
|
|
41 |
|
|
80 |
|
|
Home Equity |
|
58 |
|
|
77 |
|
|
177 |
|
|
|
272 |
|
|
485 |
|
|
Automobile |
|
754 |
|
|
626 |
|
|
559 |
|
|
|
1,959 |
|
|
1,749 |
|
|
Other |
|
538 |
|
|
540 |
|
|
490 |
|
|
|
1,668 |
|
|
1,514 |
|
|
Total Recoveries on Loans and Leases |
|
1,399 |
|
|
1,337 |
|
|
1,382 |
|
|
|
5,723 |
|
|
4,081 |
|
|
Net Charged-Off – Loans and Leases |
|
(3,314 |
) |
|
(3,402 |
) |
|
(2,577 |
) |
|
|
(7,791 |
) |
|
(9,598 |
) |
|
Provision for Credit Losses: |
|
|
|
|
|
|
||||||||||
|
Loans and Leases |
|
2,489 |
|
|
3,435 |
|
|
2,812 |
|
|
|
7,195 |
|
|
9,848 |
|
|
Unfunded Commitments |
|
261 |
|
|
165 |
|
|
(312 |
) |
|
|
905 |
|
|
(848 |
) |
|
Total Provision for Credit Losses |
|
2,750 |
|
|
3,600 |
|
|
2,500 |
|
|
|
8,100 |
|
|
9,000 |
|
|
Balance at End of Period |
$ |
148,712 |
|
$ |
149,276 |
|
$ |
150,051 |
|
|
$ |
148,712 |
|
$ |
150,051 |
|
|
Components |
|
|
|
|
|
|
||||||||||
|
Allowance for Credit Losses – Loans and Leases |
$ |
146,170 |
|
$ |
146,995 |
|
$ |
148,778 |
|
|
$ |
146,170 |
|
$ |
148,778 |
|
|
Reserve for Unfunded Commitments |
|
2,542 |
|
|
2,281 |
|
|
1,273 |
|
|
|
2,542 |
|
|
1,273 |
|
|
Total Reserve for Credit Losses |
$ |
148,712 |
|
$ |
149,276 |
|
$ |
150,051 |
|
|
$ |
148,712 |
|
$ |
150,051 |
|
|
Average Loans and Leases Outstanding |
$ |
14,305,379 |
|
$ |
14,218,951 |
|
$ |
13,982,003 |
|
|
$ |
14,203,547 |
|
$ |
14,030,773 |
|
|
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized) |
|
0.09 |
% |
|
0.10 |
% |
|
0.07 |
% |
|
|
0.07 |
% |
|
0.09 |
% |
|
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 1 |
|
1.02 |
% |
|
1.03 |
% |
|
1.06 |
% |
|
|
1.02 |
% |
|
1.06 |
% |
|
1 |
The numerator comprises the Allowance for Credit Losses – Loans and Leases. |
|
Bank of Hawai‘i Corporation and Subsidiaries |
||||||||||||||||
|
Reconciliation of Non-GAAP Financial Measures |
|
Table 8 |
||||||||||||||
|
(dollars in thousands) |
|
September 30, 2026 |
|
June 30, 2026 |
|
December 31, 2025 |
|
September 30, 2025 |
||||||||
|
Total Shareholders’ Equity |
|
$ |
1,826,076 |
|
|
$ |
1,875,467 |
|
|
$ |
1,851,212 |
|
|
$ |
1,791,183 |
|
|
Less: Preferred Stock |
|
|
345,000 |
|
|
|
345,000 |
|
|
|
345,000 |
|
|
|
345,000 |
|
|
Goodwill |
|
|
31,517 |
|
|
|
31,517 |
|
|
|
31,517 |
|
|
|
31,517 |
|
|
Tangible Common Equity |
|
$ |
1,449,559 |
|
|
$ |
1,498,950 |
|
|
$ |
1,474,695 |
|
|
$ |
1,414,666 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total Assets |
|
$ |
23,819,536 |
|
|
$ |
23,842,940 |
|
|
$ |
24,176,364 |
|
|
$ |
24,014,609 |
|
|
Less: Goodwill |
|
|
31,517 |
|
|
|
31,517 |
|
|
|
31,517 |
|
|
|
31,517 |
|
|
Tangible Assets |
|
$ |
23,788,019 |
|
|
$ |
23,811,423 |
|
|
$ |
24,144,847 |
|
|
$ |
23,983,092 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements 1, 2 |
|
$ |
14,587,549 |
|
|
$ |
14,442,396 |
|
|
$ |
14,246,238 |
|
|
$ |
14,215,866 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total Shareholders’ Equity to Total Assets |
|
|
7.67 |
% |
|
|
7.87 |
% |
|
|
7.66 |
% |
|
|
7.46 |
% |
|
Tangible Common Equity to Tangible Assets (Non-GAAP) |
|
|
6.09 |
% |
|
|
6.30 |
% |
|
|
6.11 |
% |
|
|
5.90 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Tier 1 Capital Ratio 1 |
|
|
14.41 |
% |
|
|
14.45 |
% |
|
|
14.49 |
% |
|
|
14.34 |
% |
|
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1 |
|
|
9.94 |
% |
|
|
10.38 |
% |
|
|
10.35 |
% |
|
|
9.95 |
% |
|
1 |
Regulatory capital ratios as of September 30, 2026 are preliminary. |
|
2 |
Risk-Weighted Assets as of December 31, 2025 has been updated to reflect final reported amount. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20261026685229/en/
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