Bank of Hawai‘i Corporation Second Quarter 2026 Financial Results

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Key Terms

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

deposit beta financial

Deposit beta measures how much of a change in market interest rates a bank passes on to the interest rates it pays depositors. Think of it like a store deciding how much of a supplier’s price increase to pass to shoppers; a low deposit beta means the bank keeps more of the higher rates as profit, while a high beta means deposit costs rise more and can squeeze margins. Investors track it to gauge future bank profitability and funding pressure.

non-performing assets financial

Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

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07/27/2026 - 06:45 AM

Diluted Earnings Per Common Share of $1.47
Net Income of $63.8 Million
Net Interest Margin Increased to 2.78%
Share Repurchases of $17.0 Million

HONOLULU--(BUSINESS WIRE)-- Bank of Hawai‘i Corporation (NYSE: BOH) (the “Company”) today reported diluted earnings per common share of $1.47 for the second quarter of 2026, compared with $1.30 during the linked quarter. Net income for the quarter was $63.8 million, up 11.1% from the linked quarter. The return on average common equity for the second quarter of 2026 was 15.47% compared with 13.90% during the linked quarter.

“Bank of Hawai‘i delivered solid second quarter results reflecting steady execution and disciplined balance sheet management,” said Jim Polk, President and CEO. “Net interest margin expanded for the ninth consecutive quarter, supported by the ongoing repricing of cash flows. Total loans and leases increased from the prior quarter, while average total deposits were modestly lower during a seasonally lower period. Credit quality remained strong, and we continued to maintain a disciplined approach to expenses.”

Financial Highlights

Net interest income for the second quarter of 2026 was $153.6 million, an increase of 1.7% 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), 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) and higher deposit costs.

Net interest margin was 2.78% in the second 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 4.08% and the average yield on loans and leases was 4.79% in the second quarter of 2026, up 5 basis points and 4 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 of all loans, including floating rate loans, during the quarter were originated at an average rate of 5.90%.

The average rate of interest-bearing deposits was 1.73% and the average quarterly rate of total deposits, including noninterest-bearing deposits, was 1.27%, both up 1 basis point from the linked quarter. The increase in the rate on total deposits was primarily driven by deposit mix shift and higher rates on interest-bearing demand and savings deposits, partially offset by maturing time deposits renewing at lower rates. The deposit beta for the downward rate cycle was 35.5% as of the second quarter of 2026.

Noninterest income was $43.3 million in the second quarter of 2026, an increase of 4.8% from the linked quarter. Noninterest income included a $0.4 million and a $0.2 million charge related to a Visa Class B share conversion ratio change in the second quarter of 2026 and linked quarter, respectively. Adjusted for these items, noninterest income for the second quarter of 2026 was up 5.3% from the linked quarter. The increase was primarily due to increases in trust and asset management fees and commissions earned on our annuity and insurance business.

Noninterest expense was $111.2 million in the second quarter of 2026, a decrease of 4.2% from the linked quarter. Noninterest expense in the second quarter included a $0.5 million net benefit related to the forfeiture of restricted stock awards. Noninterest expense in the linked quarter included $3.5 million in expenses related to the accelerated vesting of restricted stock awards pursuant to the retirement provision of performance-based restricted stock granted in 2024 and 2025 and $0.7 million in separation expenses. Adjusted for these items, noninterest expense for the second quarter of 2026 decreased by 0.2% from the linked quarter.

The effective tax rate for the second quarter of 2026 was 22.31% compared to 22.91% during the linked quarter. The lower effective tax rate in the current quarter as compared to the linked quarter was primarily due to higher benefits from certain tax advantaged investments and an increase in tax benefits from discrete items.

Asset Quality

The Company’s overall asset quality remained strong during the second quarter of 2026. Provision for credit losses for the second quarter of 2026 was $3.6 million, up $1.9 million from the linked quarter. This increase was primarily driven by higher net loan and lease charge-offs during the second quarter of 2026 as compared to the linked quarter, which included a $1.6 million recovery on a single commercial mortgage loan.

Total non-performing assets were $11.5 million at June 30, 2026, down $0.6 million from March 31, 2026. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.08% at the end of the quarter, a decrease of 1 basis point from the linked quarter.

Net loan and lease charge-offs during the second quarter of 2026 were $3.4 million or 10 basis points annualized of total average loans and leases outstanding. Gross charge-offs of $4.7 million were partially offset by gross recoveries of $1.3 million. Compared to the linked quarter, net loan and lease charge-offs increased by $2.3 million or 7 basis points annualized on total average loans and leases outstanding.

The allowance for credit losses on loans and leases was $147.0 million at June 30, 2026, unchanged from March 31, 2026. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.03% at the end of the quarter, a decrease of 1 basis point from March 31, 2026.

Balance Sheet

Total assets were $23.8 billion at June 30, 2026, a decrease of 1.4% 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 and available-for-sale securities.

The investment securities portfolio was $7.7 billion at June 30, 2026, a decrease of 0.9% from December 31, 2025. The decrease was primarily due to portfolio runoff, including maturities and paydowns, partially offset by purchases in 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 $14.3 billion at June 30, 2026, an increase of 1.5% from December 31, 2025. Total commercial loans were $6.2 billion at June 30, 2026, an increase of 2.6% from December 31, 2025. The increase was primarily due to commercial mortgage and commercial and industrial production. Total consumer loans were $8.0 billion at June 30, 2026, an increase of 0.6% from December 31, 2025. The increase was primarily due to increased production in the residential mortgage portfolio, partially offset by amortization and paydowns.

Total deposits were $20.9 billion at June 30, 2026, a decrease of 1.4% from December 31, 2025. Noninterest-bearing deposits made up 26.7% of total deposit balances at June 30, 2026, down from 27.2% at December 31, 2025. Average total deposits were $20.8 billion for the second quarter of 2026, down 0.7% from December 31, 2025.

Capital and Dividends

The Company’s capital levels remain well above regulatory well-capitalized minimums.

The Tier 1 Capital Ratio was 14.45% at June 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 8.70% at June 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 216 thousand shares of common stock at a total cost of $17.0 million under the share repurchase program in the second quarter of 2026. Total remaining buyback authority under the share repurchase program was $88.9 million at June 30, 2026.

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, 2026 to shareholders of record at the close of business on August 31, 2026.

On July 6, 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 August 3, 2026 to shareholders of record of the preferred stock as of the close of business on July 17, 2026.

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/BIbf819fb4b2824119b0496adf4c769c13. 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 27, 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.


Bank of Hawai‘i Corporation and Subsidiaries
Financial Highlights										Table 1
	Three Months Ended									Six Months Ended
(dollars in thousands, except per share amounts)	June 30, 2026			March 31, 2026			June 30, 2025			June 30, 2026			June 30, 2025
For the Period:
Operating Results
Net Interest Income	$	153,604		$	150,990		$	129,683		$	304,594		$	255,490
Provision for Credit Losses		3,600			1,750			3,250			5,350			6,500
Total Noninterest Income		43,299			41,332			44,795			84,631			88,853
Total Noninterest Expense		111,186			116,071			110,783			227,257			221,242
Pre-Provision Net Revenue		85,717			76,251			63,695			161,968			123,101
Net Income		63,799			57,432			47,637			121,231			91,622
Net Income Available to Common Shareholders		58,530			52,163			42,368			110,693			81,084
Basic Earnings Per Common Share		1.48			1.32			1.07			2.80			2.05
Diluted Earnings Per Common Share		1.47			1.30			1.06			2.78			2.03
Dividends Declared Per Common Share		0.70			0.70			0.70			1.40			1.40
Performance Ratios
Return on Average Assets		1.07	%		0.97	%		0.81	%		1.02	%		0.78	%
Return on Average Shareholders' Equity		13.74			12.47			11.21			13.11			10.93
Return on Average Common Equity		15.47			13.90			12.50			14.69			12.16
Efficiency Ratio ¹		56.47			60.35			63.49			58.39			64.25
Net Interest Margin ²		2.78			2.74			2.39			2.76			2.36
Dividend Payout Ratio ³		47.30			53.03			65.42			50.00			68.29
Average Shareholders' Equity to Average Assets		7.81			7.81			7.22			7.81			7.16
Average Balances
Average Loans and Leases	$	14,218,951		$	14,083,875		$	14,049,025		$	14,151,786		$	14,055,563
Average Assets		23,861,848			23,915,334			23,596,955			23,888,444			23,617,398
Average Deposits		20,826,923			20,915,443			20,699,694			20,870,939			20,684,700
Average Shareholders' Equity		1,862,499			1,867,165			1,704,415			1,864,819			1,690,073
Per Share of Common Stock
Book Value	$	38.81		$	38.10		$	35.16		$	38.81		$	35.16
Tangible Book Value		38.01			37.31			34.37			38.01			34.37
Market Value
Closing		81.49			74.25			67.53			81.49			67.53
High		83.18			80.61			71.35			83.18			76.00
Low		70.07			67.04			57.45			67.04			57.45

	June 30, 2026			March 31, 2026			December 31, 2025			June 30, 2025
As of Period End:
Balance Sheet Totals
Loans and Leases	$	14,286,625		$	14,192,811		$	14,082,050		$	14,002,178
Total Assets		23,842,940			23,909,933			24,176,364			23,709,752
Total Deposits		20,892,775			20,957,930			21,188,495			20,798,914
Other Debt		508,124			558,150			558,176			558,226
Total Shareholders' Equity		1,875,467			1,854,563			1,851,212			1,743,107
Asset Quality
Non-Performing Assets	$	11,478		$	12,090		$	14,171		$	17,881
Allowance for Credit Losses - Loans and Leases		146,995			146,962			146,766			148,543
Allowance to Loans and Leases Outstanding ⁴		1.03	%		1.04	%		1.04	%		1.06	%
Capital Ratios ⁵
Common Equity Tier 1 Capital Ratio ⁶		12.12	%		12.06	%		12.14	%		11.81	%
Tier 1 Capital Ratio		14.45			14.40			14.49			14.17
Total Capital Ratio		15.48			15.44			15.54			15.23
Tier 1 Leverage Ratio		8.70			8.62			8.57			8.46
Total Shareholders' Equity to Total Assets		7.87			7.76			7.66			7.35
Tangible Common Equity to Tangible Assets ⁷		6.30			6.19			6.11			5.77
Tangible Common Equity to Risk-Weighted Assets ⁷		10.38			10.28			10.35			9.62
Non-Financial Data
Full-Time Equivalent Employees		1,910			1,866			1,877			1,921
Branches		52			52			51			51
ATMs		315			319			320			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, 2026 are preliminary.
⁶		Capital Ratio as of December 31, 2025 has been updated to reflect final reported ratio.
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 8 “Reconciliation of Non-GAAP Financial Measures”.

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Income										Table 2
	Three Months Ended									Six Months Ended
(dollars in thousands, except per share amounts)	June 30, 2026			March 31, 2026			June 30, 2025			June 30, 2026			June 30, 2025
Interest Income
Interest and Fees on Loans and Leases	$	168,624		$	164,469		$	166,779		$	333,093		$	329,861
Income on Investment Securities
Available-for-Sale		36,397			34,575			27,007			70,972			51,375
Held-to-Maturity		18,056			18,541			19,835			36,597			40,126
Cash and Cash Equivalents		1,726			3,329			3,817			5,055			9,277
Other		1,313			1,293			1,097			2,606			2,182
Total Interest Income		226,116			222,207			218,535			448,323			432,821
Interest Expense
Deposits		65,804			64,886			82,476			130,690			164,168
Securities Sold Under Agreements to Repurchase		491			486			491			977			1,235
Other Debt		6,217			5,845			5,885			12,062			11,928
Total Interest Expense		72,512			71,217			88,852			143,729			177,331
Net Interest Income		153,604			150,990			129,683			304,594			255,490
Provision for Credit Losses		3,600			1,750			3,250			5,350			6,500
Net Interest Income After Provision for Credit Losses		150,004			149,240			126,433			299,244			248,990
Noninterest Income
Trust and Asset Management		13,712			12,445			12,097			26,157			23,838
Fees, Exchange, and Other Service Charges		11,127			10,928			14,383			22,055			28,820
Service Charges on Deposit Accounts		8,353			8,440			8,119			16,793			16,378
Bank-Owned Life Insurance		3,923			4,147			3,714			8,070			7,325
Annuity and Insurance		2,017			1,469			1,437			3,486			2,992
Mortgage Banking		839			876			849			1,715			1,837
Investment Securities Losses, Net		(1,287	)		(1,272	)		(1,126	)		(2,559	)		(2,733	)
Other		4,615			4,299			5,322			8,914			10,396
Total Noninterest Income		43,299			41,332			44,795			84,631			88,853
Noninterest Expense
Salaries and Benefits		62,642			68,457			61,308			131,099			124,192
Net Occupancy		10,868			10,782			10,499			21,650			21,058
Net Equipment		10,604			10,611			9,977			21,215			20,169
Data Processing		5,463			5,581			5,456			11,044			10,723
Professional Fees		5,276			4,226			4,263			9,502			8,527
FDIC Insurance		2,978			2,719			3,640			5,697			5,282
Other		13,355			13,695			15,640			27,050			31,291
Total Noninterest Expense		111,186			116,071			110,783			227,257			221,242
Income Before Provision for Income Taxes		82,117			74,501			60,445			156,618			116,601
Provision for Income Taxes		18,318			17,069			12,808			35,387			24,979
Net Income	$	63,799		$	57,432		$	47,637		$	121,231		$	91,622
Preferred Stock Dividends		5,269			5,269			5,269			10,538			10,538
Net Income Available to Common Shareholders	$	58,530		$	52,163		$	42,368		$	110,693		$	81,084
Basic Earnings Per Common Share	$	1.48		$	1.32		$	1.07		$	2.80		$	2.05
Diluted Earnings Per Common Share	$	1.47		$	1.30		$	1.06		$	2.78		$	2.03
Dividends Declared Per Common Share	$	0.70		$	0.70		$	0.70		$	1.40		$	1.40
Basic Weighted Average Common Shares		39,513,447			39,568,000			39,622,998			39,540,239			39,588,916
Diluted Weighted Average Common Shares		39,734,782			39,981,356			39,895,093			39,839,337			39,888,294

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Condition							Table 3
(dollars in thousands, except per share amounts)	June 30, 2026			March 31, 2026			December 31, 2025			June 30, 2025
Assets
Cash and Cash Equivalents	$	452,814		$	425,080		$	946,520		$	768,683
Investment Securities
Available-for-Sale		3,618,515			3,722,405			3,510,652			3,111,504
Held-to-Maturity (Fair Value of $3,452,980; $3,549,687; $3,651,966; and $3,754,794)		4,070,908			4,163,261			4,245,681			4,441,353
Loans Held for Sale		5,089			3,609			4,369			1,867
Loans and Leases		14,286,625			14,192,811			14,082,050			14,002,178
Allowance for Credit Losses		(146,995	)		(146,962	)		(146,766	)		(148,543	)
Net Loans and Leases		14,139,630			14,045,849			13,935,284			13,853,635
Premises and Equipment, Net		223,463			215,859			199,747			192,221
Operating Lease Right-of-Use Assets		84,519			82,244			83,424			83,594
Accrued Interest Receivable		70,646			70,555			69,899			67,204
Mortgage Servicing Rights		16,626			17,036			17,455			18,362
Goodwill		31,517			31,517			31,517			31,517
Bank-Owned Life Insurance		508,869			499,681			499,795			488,028
Other Assets		620,344			632,837			632,021			651,784
Total Assets	$	23,842,940		$	23,909,933		$	24,176,364		$	23,709,752
Liabilities
Deposits
Noninterest-Bearing Demand	$	5,575,291		$	5,653,265		$	5,755,371		$	5,424,471
Interest-Bearing Demand		4,075,694			3,884,305			3,910,952			3,855,120
Savings		8,705,102			8,683,875			8,741,090			8,481,328
Time		2,536,688			2,736,485			2,781,082			3,037,995
Total Deposits		20,892,775			20,957,930			21,188,495			20,798,914
Securities Sold Under Agreements to Repurchase		50,000			50,000			50,000			50,000
Other Debt		508,124			558,150			558,176			558,226
Operating Lease Liabilities		93,568			91,213			92,402			92,381
Retirement Benefits Payable		25,496			25,686			20,139			23,528
Accrued Interest Payable		16,390			19,757			22,370			26,732
Other Liabilities		381,120			352,634			393,570			416,864
Total Liabilities		21,967,473			22,055,370			22,325,152			21,966,645
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, 2026 - 59,020,336 / 39,439,677; March 31, 2026 - 59,000,929 / 39,620,563; December 31, 2025 - 58,780,253 / 39,725,698 and June 30, 2025 - 58,775,870 / 39,765,375)		590			590			587			587
Capital Surplus		675,654			672,584			664,781			655,479
Accumulated Other Comprehensive Loss		(243,475	)		(247,217	)		(244,438	)		(299,194	)
Retained Earnings		2,260,152			2,229,539			2,205,707			2,158,450
Treasury Stock, at Cost (Shares: June 30, 2026 - 19,580,659; March 31, 2026 - 19,380,366; December 31, 2025 - 19,054,555; and June 30, 2025 - 19,010,495)		(1,162,454	)		(1,145,933	)		(1,120,425	)		(1,117,215	)
Total Shareholders’ Equity		1,875,467			1,854,563			1,851,212			1,743,107
Total Liabilities and Shareholders’ Equity	$	23,842,940		$	23,909,933		$	24,176,364		$	23,709,752

Bank of Hawai‘i Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis ¹															Table 4a
	Three Months Ended June 30, 2026						Three Months Ended March 31, 2026						Three Months Ended June 30, 2025
(dollars in millions)	Average Balance		Income/Expense ²		Yield/Rate		Average Balance		Income/Expense ²		Yield/Rate		Average Balance		Income/Expense ²		Yield/Rate
Earning Assets
Cash and Cash Equivalents	$	196.2	$	1.7	3.48	%	$	372.5	$	3.3	3.58	%	$	353.7	$	3.8	4.27	%
Investment Securities
Available-for-Sale
Taxable		3,669.5		36.1	3.93			3,598.1		34.2	3.82			2,987.2		26.7	3.58
Non-Taxable		31.7		0.4	5.08			32.1		0.4	5.07			27.4		0.4	5.85
Held-to-Maturity
Taxable		4,091.6		17.9	1.75			4,175.4		18.4	1.76			4,462.1		19.7	1.77
Non-Taxable		33.4		0.2	2.10			33.5		0.2	2.10			34.0		0.2	2.10
Total Investment Securities		7,826.2		54.6	2.79			7,839.1		53.2	2.72			7,510.7		47.0	2.50
Loans Held for Sale		2.7		0.0	6.20			3.6		0.1	5.22			2.2		0.0	5.66
Loans and Leases ³
Commercial Mortgage		4,314.9		55.7	5.17			4,220.6		54.1	5.19			4,025.2		53.7	5.35
Commercial and Industrial		1,624.6		19.5	4.83			1,583.4		18.7	4.79			1,668.1		21.1	5.07
Construction		209.7		3.3	6.30			215.7		3.4	6.46			366.2		6.7	7.30
Commercial Lease Financing		84.6		0.9	4.26			86.9		0.9	4.29			93.4		1.0	4.07
Residential Mortgage		4,812.6		48.9	4.06			4,781.9		47.8	4.00			4,626.5		45.6	3.95
Home Equity		2,085.3		24.1	4.63			2,103.1		23.6	4.55			2,141.5		23.3	4.37
Automobile		677.4		9.5	5.65			684.6		9.4	5.57			730.1		9.4	5.19
Other		409.9		7.9	7.74			407.7		7.8	7.76			398.0		7.5	7.53
Total Loans and Leases		14,219.0		169.8	4.79			14,083.9		165.7	4.75			14,049.0		168.3	4.80
Other		82.8		1.4	6.34			81.9		1.3	6.31			65.2		1.1	6.72
Total Earning Assets		22,326.9		227.5	4.08			22,381.0		223.6	4.03			21,980.8		220.2	4.01
Non-Earning Assets		1,534.9						1,534.3						1,616.2
Total Assets	$	23,861.8					$	23,915.3					$	23,597.0

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	3,781.7	$	7.4	0.78	%	$	3,839.0	$	6.6	0.69	%	$	3,705.5	$	7.6	0.82	%
Savings		8,750.0		39.9	1.83			8,668.4		38.7	1.81			8,578.6		48.1	2.25
Time		2,707.6		18.5	2.75			2,753.6		19.6	2.89			3,050.0		26.8	3.52
Total Interest-Bearing Deposits		15,239.3		65.8	1.73			15,261.0		64.9	1.72			15,334.1		82.5	2.16
Securities Sold Under Agreements to Repurchase		50.0		0.5	3.88			50.0		0.5	3.89			50.0		0.5	3.88
Other Debt		593.3		6.2	4.20			560.9		5.8	4.23			558.3		5.9	4.23
Total Interest-Bearing Liabilities		15,882.6		72.5	1.83			15,871.9		71.2	1.82			15,942.4		88.9	2.24
Net Interest Income			$	155.0					$	152.4					$	131.3
Interest Rate Spread					2.25	%					2.21	%					1.77	%
Net Interest Margin					2.78	%					2.74	%					2.39	%
Noninterest-Bearing Demand Deposits		5,587.6						5,654.4						5,365.6
Other Liabilities		529.1						521.8						584.6
Shareholders' Equity		1,862.5						1,867.2						1,704.4
Total Liabilities and Shareholders' Equity	$	23,861.8					$	23,915.3					$	23,597.0

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 $1.4 million, $1.4 million, and $1.6 million for the three months ended June 30, 2026, March 31, 2026, and June 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
	Six Months Ended June 30, 2026						Six Months Ended June 30, 2025
(dollars in millions)	Average Balance		Income/Expense ²		Yield/Rate		Average Balance		Income/Expense ²		Yield/Rate
Earning Assets
Cash and Cash Equivalents	$	283.8	$	5.1	3.54	%	$	426.4	$	9.3	4.33	%
Investment Securities
Available-for-Sale
Taxable		3,634.0		70.3	3.88			2,889.3		50.8	3.53
Non-Taxable		31.9		0.8	5.08			24.3		0.7	5.77
Held-to-Maturity
Taxable		4,133.2		36.3	1.76			4,505.1		39.8	1.77
Non-Taxable		33.5		0.4	2.10			34.1		0.4	2.10
Total Investment Securities		7,832.6		107.8	2.76			7,452.8		91.7	2.47
Loans Held for Sale		3.1		0.1	5.65			2.2		0.1	5.87
Loans and Leases ³
Commercial Mortgage		4,268.0		109.7	5.18			4,020.3		106.2	5.33
Commercial and Industrial		1,604.1		38.2	4.81			1,685.8		42.3	5.06
Construction		212.7		6.7	6.38			352.4		12.7	7.26
Commercial Lease Financing		85.7		1.8	4.27			92.3		1.8	3.95
Residential Mortgage		4,797.3		96.8	4.03			4,621.6		90.5	3.91
Home Equity		2,094.2		47.7	4.59			2,147.9		45.8	4.30
Automobile		681.0		18.9	5.61			741.3		18.8	5.10
Other		408.8		15.7	7.75			394.0		14.6	7.47
Total Loans and Leases		14,151.8		335.5	4.77			14,055.6		332.7	4.76
Other		82.5		2.6	6.33			65.2		2.1	6.70
Total Earning Assets		22,353.8		451.1	4.05			22,002.2		435.9	3.98
Non-Earning Assets		1,534.6						1,615.2
Total Assets	$	23,888.4					$	23,617.4

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	3,810.2	$	14.0	0.74	%	$	3,739.2	$	14.7	0.79	%
Savings		8,709.4		78.6	1.82			8,561.7		95.2	2.24
Time		2,730.5		38.1	2.82			3,043.7		54.3	3.60
Total Interest-Bearing Deposits		15,250.1		130.7	1.73			15,344.6		164.2	2.16
Securities Sold Under Agreements to Repurchase		50.0		1.0	3.89			63.3		1.2	3.88
Other Debt		577.2		12.0	4.21			568.2		11.9	4.23
Total Interest-Bearing Liabilities		15,877.3		143.7	1.83			15,976.1		177.3	2.24
Net Interest Income			$	307.4					$	258.6
Interest Rate Spread					2.22	%					1.74	%
Net Interest Margin					2.76	%					2.36	%
Noninterest-Bearing Demand Deposits		5,620.8						5,340.1
Other Liabilities		525.5						611.1
Shareholders’ Equity		1,864.8						1,690.1
Total Liabilities and Shareholders’ Equity	$	23,888.4					$	23,617.4

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 $2.8 million and $3.1 million for the six months ended June 30, 2026 and June 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)	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Commercial
Commercial Mortgage	$	4,319,221	$	4,341,448	$	4,205,791	$	4,040,711	$	4,038,956
Commercial and Industrial		1,676,535		1,575,207		1,584,245		1,581,232		1,597,560
Construction		164,504		204,993		208,584		380,944		374,768
Lease Financing		85,338		84,651		88,303		92,213		92,842
Total Commercial		6,245,598		6,206,299		6,086,923		6,095,100		6,104,126
Consumer
Residential Mortgage		4,864,875		4,800,256		4,775,502		4,685,214		4,637,014
Home Equity		2,079,127		2,095,521		2,114,809		2,129,599		2,139,025
Automobile		674,899		680,570		690,376		699,244		715,688
Other		422,126		410,165		414,440		412,422		406,325
Total Consumer		8,041,027		7,986,512		7,995,127		7,926,479		7,898,052
Total Loans and Leases	$	14,286,625	$	14,192,811	$	14,082,050	$	14,021,579	$	14,002,178

Deposits
(dollars in thousands)	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Consumer	$	10,454,082	$	10,530,223	$	10,466,617	$	10,393,932	$	10,429,271
Commercial		8,167,262		8,340,279		8,597,265		8,348,396		8,243,898
Public and Other		2,271,431		2,087,428		2,124,613		2,338,341		2,125,745
Total Deposits	$	20,892,775	$	20,957,930	$	21,188,495	$	21,080,669	$	20,798,914

Average Deposits
	Three Months Ended
(dollars in thousands)	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Consumer	$	10,474,385	$	10,461,004	$	10,373,200	$	10,387,715	$	10,435,867
Commercial		8,436,028		8,431,519		8,478,592		8,504,078		8,316,893
Public and Other		1,916,510		2,022,920		2,128,407		2,176,493		1,946,933
Total Deposits	$	20,826,923	$	20,915,443	$	20,980,199	$	21,068,286	$	20,699,693

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)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial Mortgage	$	-		$	-		$	2,085		$	2,498		$	2,566
Commercial and Industrial		1,734			1,860			1,940			3,506			3,744
Total Commercial		1,734			1,860			4,025			6,004			6,310
Consumer
Residential Mortgage		5,348			5,410			5,382			5,628			5,842
Home Equity		4,225			4,525			4,469			5,107			5,387
Total Consumer		9,573			9,935			9,851			10,735			11,229
Total Non-Accrual Loans and Leases		11,307			11,795			13,876			16,739			17,539
Foreclosed Real Estate		171			295			295			125			342
Total Non-Performing Assets	$	11,478		$	12,090		$	14,171		$	16,864		$	17,881
Accruing Loans and Leases Past Due 90 Days or More
Consumer
Residential Mortgage	$	8,887		$	10,733		$	8,834		$	7,456		$	9,070
Home Equity		3,503			1,556			2,152			2,765			1,867
Automobile		763			672			520			525			680
Other		965			764			753			578			630
Total Consumer		14,118			13,725			12,259			11,324			12,247
Total Accruing Loans and Leases Past Due 90 Days or More	$	14,118		$	13,725		$	12,259		$	11,324		$	12,247
Total Loans and Leases	$	14,286,625		$	14,192,811		$	14,082,050		$	14,021,579		$	14,002,178
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases		0.08	%		0.08	%		0.10	%		0.12	%		0.13	%
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate		0.08	%		0.09	%		0.10	%		0.12	%		0.13	%
Ratio of Non-Performing Assets to Total Assets		0.05	%		0.05	%		0.06	%		0.07	%		0.08	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate		0.03	%		0.03	%		0.07	%		0.10	%		0.10	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate		0.12	%		0.13	%		0.13	%		0.14	%		0.15	%
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		0.18	%		0.18	%		0.19	%		0.20	%		0.22	%

Bank of Hawai‘i Corporation and Subsidiaries
Reserve for Credit Losses										Table 7
	Three Months Ended									Six Months Ended
(dollars in thousands)	June 30, 2026			March 31, 2026			June 30, 2025			June 30, 2026			June 30, 2025
Balance at Beginning of Period	$	149,078		$	148,403		$	149,496		$	148,403		$	150,649
Loans and Leases Charged-Off
Commercial
Commercial and Industrial		(385	)		(230	)		(206	)		(615	)		(1,605	)
Consumer
Residential Mortgage		—			(15	)		—			(15	)		—
Home Equity		(219	)		(6	)		(155	)		(225	)		(230	)
Automobile		(1,735	)		(1,417	)		(1,253	)		(3,152	)		(3,004	)
Other		(2,400	)		(2,394	)		(2,397	)		(4,794	)		(4,881	)
Total Loans and Leases Charged-Off		(4,739	)		(4,062	)		(4,011	)		(8,801	)		(9,720	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial Mortgage		—			1,617			—			1,617			—
Commercial and Industrial		72			53			78			125			155
Consumer
Residential Mortgage		22			11			11			33			22
Home Equity		77			137			180			214			308
Automobile		626			579			557			1,205			1,190
Other		540			590			567			1,130			1,024
Total Recoveries on Loans and Leases		1,337			2,987			1,393			4,324			2,699
Net Charged-Off - Loans and Leases		(3,402	)		(1,075	)		(2,618	)		(4,477	)		(7,021	)
Provision for Credit Losses:
Loans and Leases		3,435			1,271			3,454			4,706			7,036
Unfunded Commitments		165			479			(204	)		644			(536	)
Total Provision for Credit Losses		3,600			1,750			3,250			5,350			6,500
Balance at End of Period	$	149,276		$	149,078		$	150,128		$	149,276		$	150,128
Components
Allowance for Credit Losses - Loans and Leases	$	146,995		$	146,962		$	148,543		$	146,995		$	148,543
Reserve for Unfunded Commitments		2,281			2,116			1,585			2,281			1,585
Total Reserve for Credit Losses	$	149,276		$	149,078		$	150,128		$	149,276		$	150,128
Average Loans and Leases Outstanding	$	14,218,951		$	14,083,875		$	14,049,025		$	14,151,786		$	14,055,563
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)		0.10	%		0.03	%		0.07	%		0.06	%		0.10	%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding ¹		1.03	%		1.04	%		1.06	%		1.03	%		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)	June 30, 2026			March 31, 2026			December 31, 2025			June 30, 2025
Total Shareholders' Equity	$	1,875,467		$	1,854,563		$	1,851,212		$	1,743,107
Less: Preferred Stock		345,000			345,000			345,000			345,000
Goodwill		31,517			31,517			31,517			31,517
Tangible Common Equity	$	1,498,950		$	1,478,046		$	1,474,695		$	1,366,590

Total Assets	$	23,842,940		$	23,909,933		$	24,176,364		$	23,709,752
Less: Goodwill		31,517			31,517			31,517			31,517
Tangible Assets	$	23,811,423		$	23,878,416		$	24,144,847		$	23,678,235

Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements^{1, 2}	$	14,442,396		$	14,382,622		$	14,246,238		$	14,208,032

Total Shareholders' Equity to Total Assets		7.87	%		7.76	%		7.66	%		7.35	%
Tangible Common Equity to Tangible Assets (Non-GAAP)		6.30	%		6.19	%		6.11	%		5.77	%

Tier 1 Capital Ratio ¹		14.45	%		14.40	%		14.49	%		14.17	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)¹		10.38	%		10.28	%		10.35	%		9.62	%

¹		Regulatory capital ratios as of June 30, 2026 are preliminary.
²		Risk-Weighted Assets as of December 31, 2025 has been updated to reflect final reported amount.

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Source: Bank of Hawai‘i Corporation

Bank of Hawai‘i Corporation Second Quarter 2026 Financial Results

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