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

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

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

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

Financial Highlights

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

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

Net interest income for the fourth quarter of 2021 was $126.4 million, a decrease of 0.3% from the third quarter of 2021 and an increase of 5.8% from the fourth quarter of 2020. Net interest margin was 2.34% in the fourth quarter of 2021, an increase of 2 basis points from the previous quarter and a decrease of 14 basis points from the same quarter of 2020.
- The decrease in the net interest margin from the prior year is largely due to higher levels of liquidity from continued strong deposit growth and lower interest rates, partially offset by higher fees from Paycheck Protection Program ("PPP") loans, deployment of excess liquidity and core loan growth.
- One-time significant items in the fourth quarter of 2021 included a negative $0.9 million adjustment to deferred mortgage loan fees related to prior quarters which had a negative impact of 2 basis points on the net interest margin.
- One-time significant items in the fourth quarter of 2020 included a charge of $3.0 million related to an impairment in the residual value of a leveraged lease which had a negative impact of 6 basis points on the net interest margin.

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

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

Noninterest expense was $101.7 million in the fourth quarter of 2021, an increase of 5.3% from the previous quarter and 3.1% from the same quarter of 2020.
- One-time significant items in the fourth quarter of 2021 included $1.2 million related to an increase in vacation carryover limits.
- One-time significant items in the third quarter of 2021 included a gain of $6.3 million related to the sale of property partially offset by $3.8 million of fees related to the early termination of repurchase agreements and $1.2 million in severance.
- One-time significant items in the fourth quarter of 2020 included $6.1 million in charges related to the decision to permanently close twelve branches and reduce the current number of cash-only ATMs and a charge of $0.8 million related to the true-up of amortization on an investment.

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

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

Asset Quality

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

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

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

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

Balance Sheet

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

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

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

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

Capital and Dividends

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

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

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

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

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

Conference Call Information

The Company will review its 2021 financial results today at 8:00 a.m. Hawaii Time (1:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawaii Corporation's website, www.boh.com.

The webcast link is https://edge.media-server.com/mmc/p/wajqjveu.
The toll-free number for the teleconference is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code "Bank of Hawaii" to access the call.
A replay of the conference call will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, January 24, 2022. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the conference ID 3179105 when prompted. In addition, the replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2020 and its Form 10-Q for the fiscal quarters ended March 31, 2021 and June 30, 2021 and September 30, 2021, which were filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

Bank of Hawaii Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawaii and the West Pacific. The Company's principal subsidiary, Bank of Hawaii, was founded in 1897. For more information about Bank of Hawaii Corporation, see the Company's web site, www.boh.com.

Bank of Hawaii Corporation and Subsidiaries
Financial Highlights																		Table 1
	Three Months Ended											Year Ended
	December 31,				September 30,				December 31,			December 31,
(dollars in thousands, except per share amounts)		2021				2021				2020			2021				2020
For the Period:
Operating Results
Net Interest Income	$	126,388			$	126,819			$	119,499		$	497,290			$	496,322
Provision for Credit Losses ¹		(9,700	)			(10,400	)			15,200			(50,500	)			117,800
Total Noninterest Income		42,574				41,378				45,258			171,353				184,409
Total Noninterest Expense		101,678				96,519				98,654			393,589				373,807
Net Income		63,837				62,053				42,314			253,372				153,804
Basic Earnings Per Common Share		1.56				1.53				1.06			6.29				3.87
Diluted Earnings Per Common Share		1.55				1.52				1.06			6.25				3.86
Dividends Declared Per Common Share		0.70				0.70				0.67			2.74				2.68

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

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

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

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

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

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

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

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

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

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

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

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

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

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

¹ Regulatory capital ratios as of December 31, 2021 are preliminary.

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

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income														Table 4
		Three Months Ended									Year Ended
		December 31,			September 30,			December 31,			December 31,
(dollars in thousands)			2021			2021			2020			2021			2020
Net Income		$	63,837		$	62,053		$	42,314		$	253,372		$	153,804
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities		(26,244	)		(7,541	)		(961	)		(83,958	)		43,428
	Defined Benefit Plans		8,430			441			(5,616	)		9,754			(4,494	)
Other Comprehensive Income (Loss)			(17,814	)		(7,100	)		(6,577	)		(74,204	)		38,934
Comprehensive Income		$	46,023		$	54,953		$	35,737		$	179,168		$	192,738

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

Bank of Hawaii Corporation Fourth Quarter 2021 Financial Results