Diluted Earnings Per Common Share of $1.30
Net Income of $57.4 Million
Net Interest Margin Increased to 2.74%, a 13 Basis Point Improvement
Quarterly Cost of Deposits Decreased to 1.26%, a 17 Basis Point Improvement
Share Repurchases of $15.1 Million

Bank of Hawai‘i Corporation (NYSE:BOH) (the "Company") today reported diluted earnings per common share of $1.30 for the first quarter of 2026, compared with $1.39 during the linked quarter. Net income for the quarter was $57.4 million, down 5.7% from the linked quarter. The return on average common equity for the first quarter of 2026 was 13.90% compared with 15.03% during the linked quarter.

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"Bank of Hawai‘i began the year on firm footing," said Jim Polk, President and CEO. "This performance underscores the strength and resilience of our franchise. Net interest income and net interest margin continued to improve, supported by disciplined balance sheet management and a stable deposit base. Total loans and leases and average noninterest-bearing deposits increased compared to the prior quarter. Credit quality continues to be strong, and we remain focused on expense management. As I step into this role, we are committed to executing our strategy, supporting our customers and communities, and building on our strong, established foundation."

Financial Highlights

Net interest income for the first quarter of 2026 was $151.0 million, an increase of 3.9% from the linked quarter. The increase was primarily driven by a 22 basis point decline in our interest‑bearing deposit rates following the FOMC interest rate cuts in late 2025, partially offset by a 4 basis point decline in earning asset yields as floating-rate assets repriced down more than the benefit from fixed-rate assets rolling off and being reinvested at higher rates (fixed asset repricing).

Net interest margin was 2.74% in the first quarter of 2026, an increase of 13 basis points from the linked quarter, reflecting the same deposit cost and asset yield dynamics as previously mentioned.

The average yield on total earning assets was 4.03% and the average yield on loans and leases was 4.75% in the first quarter of 2026, down 4 basis points and 6 basis points, respectively, from the linked quarter. As discussed above, the decrease in loan yield from the linked quarter was primarily driven by floating-rate assets repricing to lower current interest rates, partially offset by fixed asset repricing.

The average rate of interest-bearing deposits was 1.72% and the average quarterly rate of total deposits, including noninterest-bearing deposits, was 1.26%, down 22 basis points and 17 basis points, respectively, from the linked quarter. As discussed above, the decreases were primarily due to the repricing down of our interest-bearing deposits following the FOMC interest rate cuts in late 2025. The deposit beta for the downward rate cycle was 36% as of the first quarter of 2026.

Noninterest income was $41.3 million in the first quarter of 2026, a decrease of 6.6% from the linked quarter. Noninterest income in the first quarter of 2026 included a $0.2 million charge related to a Visa Class B share conversion ratio change. Noninterest income in the linked quarter included an $18.1 million gain related to the sale of our merchant services portfolio, a $16.8 million loss on the sale of investments, and a $0.8 million charge related to a Visa Class B share conversion ratio change. Adjusted for these items, noninterest income for the first quarter of 2026 was down 5.1% from the linked quarter. The decrease was primarily due to decreases in other loan fees, which were elevated in the fourth quarter of 2025, as well as lower swap fees and trust and management fees, partially offset by higher BOLI income and annuity and insurance fees.

Noninterest expense was $116.1 million in the first quarter of 2026, an increase of 6.0% from the linked quarter. Noninterest expense in the first 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. Noninterest expense in the linked quarter included a $1.4 million reduction in our FDIC special assessment charge and a $1.1 million donation to the Bank of Hawai‘i Foundation. Adjusted for these items, noninterest expense for the first quarter of 2026 increased by 1.9% from the linked quarter. The increase was primarily due to higher seasonal payroll expenses, net occupancy, equipment expenses, and professional fees, partially offset by lower FDIC insurance and other expenses.

The effective tax rate for the first quarter of 2026 was 22.91% compared to 21.50% during the linked quarter. The higher effective tax rate in the current quarter as compared to the linked quarter was primarily due to lower benefits from certain tax advantaged investments and an increase in tax expense from discrete items.

Asset Quality

The Company's overall asset quality remained strong during the first quarter of 2026. Provision for credit losses for the first quarter of 2026 was $1.8 million, down $0.8 million from the linked quarter.

Total non-performing assets were $12.1 million at March 31, 2026, down $2.1 million from December 31, 2025. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.09% at the end of the quarter, a decrease of 1 basis point from the linked quarter.

Net loan and lease charge-offs during the first quarter of 2026 were $1.1 million or 3 basis points annualized of total average loans and leases outstanding. Gross charge-offs of $4.1 million were partially offset by gross recoveries of $3.0 million. Compared to the linked quarter, net loan and lease charge-offs decreased by $3.1 million or 9 basis points annualized on total average loans and leases outstanding.

The allowance for credit losses on loans and leases was $147.0 million at March 31, 2026, an increase of $0.2 million from December 31, 2025. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.04% at the end of the quarter, unchanged from December 31, 2025.

Balance Sheet

Total assets were $23.9 billion at March 31, 2026, a decrease of 1.1% from December 31, 2025. The decrease from December 31, 2025 was primarily due to a reduction in cash and cash equivalents, partially offset by increases in available-for-sale securities and loans and leases.

The investment securities portfolio was $7.9 billion at March 31, 2026, an increase of 1.7% from December 31, 2025. The increase was primarily due to the purchases of available-for-sale investment securities, partially offset by the amortization of the portfolio. 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 $14.2 billion at March 31, 2026, an increase of 0.8% from December 31, 2025. Total commercial loans were $6.2 billion at March 31, 2026, an increase of 2.0% from December 31, 2025. The increase was primarily due to commercial mortgage production. Total consumer loans were $8.0 billion at March 31, 2026, a decrease of 0.1% from December 31, 2025. The decrease was primarily due to amortization and paydowns, partially offset by increased production in the residential mortgage portfolio.

Total deposits were $21.0 billion at March 31, 2026, a decrease of 1.1% from December 31, 2025. Noninterest-bearing deposits made up 27.0% of total deposit balances at March 31, 2026, down from 27.2% at December 31, 2025. Average total deposits were $20.9 billion for the first quarter of 2026, down 0.3% 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 14.40% at March 31, 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 retained earnings growth. The Tier 1 Leverage Ratio was 8.62% at March 31, 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 194.1 thousand shares of common stock at a total cost of $15.1 million under the share repurchase program in the first quarter of 2026. Total remaining buyback authority under the share repurchase program was $105.9 million at March 31, 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 June 12, 2026 to shareholders of record at the close of business on May 29, 2026.

On April 3, 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 May 1, 2026 to shareholders of record of the preferred stock as of the close of business on April 16, 2026.

Conference Call Information

The Company will review its first 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/BI42ddba51d0fa4b6dacb219e80a369fdb. A replay of the conference call will be available for one year beginning at approximately 11:00 a.m. Hawai‘i Time on Monday, April 20, 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
(dollars in thousands, except per share amounts)	March 31, 2026			December 31, 2025			March 31, 2025
For the Period:
Operating Results
Net Interest Income	$	150,990		$	145,374		$	125,807
Provision for Credit Losses		1,750			2,500			3,250
Total Noninterest Income		41,332			44,271			44,058
Total Noninterest Expense		116,071			109,518			110,459
Pre-Provision Net Revenue		76,251			80,127			59,406
Net Income		57,432			60,935			43,985
Net Income Available to Common Shareholders		52,163			55,666			38,716
Basic Earnings Per Common Share		1.32			1.40			0.98
Diluted Earnings Per Common Share		1.30			1.39			0.97
Dividends Declared Per Common Share		0.70			0.70			0.70
Performance Ratios
Return on Average Assets		0.97	%		1.01	%		0.75	%
Return on Average Shareholders' Equity		12.47			13.33			10.65
Return on Average Common Equity		13.90			15.03			11.80
Efficiency Ratio ¹		60.35			57.75			65.03
Net Interest Margin ²		2.74			2.61			2.32
Dividend Payout Ratio ³		53.03			50.00			71.43
Average Shareholders' Equity to Average Assets		7.81			7.57			7.09
Average Balances
Average Loans and Leases	$	14,083,875		$	14,013,532		$	14,062,173
Average Assets		23,915,334			23,958,401			23,638,068
Average Deposits		20,915,443			20,980,199			20,669,539
Average Shareholders' Equity		1,867,165			1,814,000			1,675,571
Per Share of Common Stock
Book Value	$	38.10		$	37.92		$	34.23
Tangible Book Value		37.31			37.12			33.43
Market Value
Closing		74.25			68.37			68.97
High		80.61			71.85			76.00
Low		67.04			59.36			65.82

	March 31, 2026			December 31, 2025			March 31, 2025
As of Period End:
Balance Sheet Totals
Loans and Leases	$	14,192,811		$	14,082,050		$	14,115,323
Total Assets		23,909,933			24,176,364			23,885,056
Total Deposits		20,957,930			21,188,495			21,008,217
Other Debt		558,150			558,176			558,250
Total Shareholders' Equity		1,854,563			1,851,212			1,704,935
Asset Quality
Non-Performing Assets	$	12,090		$	14,171		$	17,451
Allowance for Credit Losses - Loans and Leases		146,962			146,766			147,707
Allowance to Loans and Leases Outstanding ⁴		1.04	%		1.04	%		1.05	%
Capital Ratios ⁵
Common Equity Tier 1 Capital Ratio ⁶		12.06	%		12.14	%		11.58	%
Tier 1 Capital Ratio		14.40			14.49			13.93
Total Capital Ratio		15.44			15.54			14.97
Tier 1 Leverage Ratio		8.62			8.57			8.36
Total Shareholders' Equity to Total Assets		7.76			7.66			7.14
Tangible Common Equity to Tangible Assets ⁷		6.19			6.11			5.57
Tangible Common Equity to Risk-Weighted Assets ⁷		10.28			10.35			9.28
Non-Financial Data
Full-Time Equivalent Employees		1,866			1,877			1,876
Branches		52			51			50
ATMs		319			320			316
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 March 31, 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 2 "Reconciliation of Non-GAAP Financial Measures".

Bank of Hawai‘i Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures					Table 2
(dollars in thousands)	March 31, 2026		December 31, 2025		March 31, 2025
Total Shareholders' Equity	$	1,854,563	$	1,851,212	$	1,704,935
Less: Preferred Stock		345,000		345,000		345,000
Goodwill		31,517		31,517		31,517
Tangible Common Equity	$	1,478,046	$	1,474,695	$	1,328,418

Total Assets	$	23,909,933	$	24,176,364	$	23,885,056
Less: Goodwill		31,517		31,517		31,517
Tangible Assets	$	23,878,416	$	24,144,847	$	23,853,539

Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements^{1, 2}	$	14,382,622	$	14,246,238	$	14,319,932

Total Shareholders' Equity to Total Assets		7.76%		7.66%		7.14%
Tangible Common Equity to Tangible Assets (Non-GAAP)		6.19%		6.11%		5.57%

Tier 1 Capital Ratio ¹		14.40%		14.49%		13.93%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)¹		10.28%		10.35%		9.28%
¹ Regulatory capital ratios as of March 31, 2026 are preliminary. ² Capital Ratio as of December 31, 2025 has been updated to reflect final reported ratio.

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Income							Table 3
	Three Months Ended
(dollars in thousands, except per share amounts)	March 31, 2026			December 31, 2025			March 31, 2025
Interest Income
Interest and Fees on Loans and Leases	$	164,469		$	168,234		$	163,082
Income on Investment Securities
Available-for-Sale		34,575			32,950			24,368
Held-to-Maturity		18,541			18,929			20,291
Cash and Cash Equivalents		3,329			5,936			5,460
Other		1,293			1,245			1,085
Total Interest Income		222,207			227,294			214,286
Interest Expense
Deposits		64,886			75,477			81,692
Securities Sold Under Agreements to Repurchase		486			496			744
Other Debt		5,845			5,947			6,043
Total Interest Expense		71,217			81,920			88,479
Net Interest Income		150,990			145,374			125,807
Provision for Credit Losses		1,750			2,500			3,250
Net Interest Income After Provision for Credit Losses		149,240			142,874			122,557
Noninterest Income
Trust and Asset Management		12,445			12,883			11,741
Fees, Exchange, and Other Service Charges		10,928			12,298			14,437
Service Charges on Deposit Accounts		8,440			8,694			8,259
Bank-Owned Life Insurance		4,147			3,758			3,611
Annuity and Insurance		1,469			1,124			1,555
Mortgage Banking		876			917			988
Investment Securities Losses, Net		(1,272	)		(18,717	)		(1,607	)
Other		4,299			23,314			5,074
Total Noninterest Income		41,332			44,271			44,058
Noninterest Expense
Salaries and Benefits		68,457			61,675			62,884
Net Occupancy		10,782			10,029			10,559
Net Equipment		10,611			10,047			10,192
Data Processing		5,581			5,659			5,267
Professional Fees		4,226			3,682			4,264
FDIC Insurance		2,719			2,378			1,642
Other		13,695			16,048			15,651
Total Noninterest Expense		116,071			109,518			110,459
Income Before Provision for Income Taxes		74,501			77,627			56,156
Provision for Income Taxes		17,069			16,692			12,171
Net Income	$	57,432		$	60,935		$	43,985
Preferred Stock Dividends		5,269			5,269			5,269
Net Income Available to Common Shareholders	$	52,163		$	55,666		$	38,716
Basic Earnings Per Common Share	$	1.32		$	1.40		$	0.98
Diluted Earnings Per Common Share	$	1.30		$	1.39		$	0.97
Dividends Declared Per Common Share	$	0.70		$	0.70		$	0.70
Basic Weighted Average Common Shares		39,568,000			39,641,382			39,554,834
Diluted Weighted Average Common Shares		39,981,356			40,003,635			39,876,406

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income						Table 4
	Three Months Ended
(dollars in thousands)	March 31, 2026			December 31, 2025		March 31, 2025
Net Income	$	57,432		$	60,935	$	43,985
Other Comprehensive Income (Loss), Net of Tax:
Net Change in Unrealized Gains (Losses) on Investment Securities		(3,001	)		29,367		24,760
Net Change in Defined Benefit Plans		222			2,446		232
Other Comprehensive Income (Loss)		(2,779	)		31,813		24,992
Comprehensive Income	$	54,653		$	92,748	$	68,977

Bank of Hawai‘i Corporation and Subsidiaries
Consolidated Statements of Condition							Table 5
(dollars in thousands, except per share amounts)	March 31, 2026			December 31, 2025			March 31, 2025
Assets
Cash and Cash Equivalents	$	425,080		$	946,520		$	935,200
Investment Securities
Available-for-Sale		3,722,405			3,510,652			2,887,019
Held-to-Maturity (Fair Value of $3,549,687; $3,651,966; and $3,823,655)		4,163,261			4,245,681			4,535,108
Loans Held for Sale		3,609			4,369			2,640
Loans and Leases		14,192,811			14,082,050			14,115,323
Allowance for Credit Losses		(146,962	)		(146,766	)		(147,707	)
Net Loans and Leases		14,045,849			13,935,284			13,967,616
Premises and Equipment, Net		215,859			199,747			187,858
Operating Lease Right-of-Use Assets		82,244			83,424			83,577
Accrued Interest Receivable		70,555			69,899			67,706
Mortgage Servicing Rights		17,036			17,455			18,770
Goodwill		31,517			31,517			31,517
Bank-Owned Life Insurance		499,681			499,795			481,260
Other Assets		632,837			632,021			686,785
Total Assets	$	23,909,933		$	24,176,364		$	23,885,056
Liabilities
Deposits
Noninterest-Bearing Demand	$	5,653,265		$	5,755,371		$	5,493,232
Interest-Bearing Demand		3,884,305			3,910,952			3,775,948
Savings		8,683,875			8,741,090			8,700,143
Time		2,736,485			2,781,082			3,038,894
Total Deposits		20,957,930			21,188,495			21,008,217
Securities Sold Under Agreements to Repurchase		50,000			50,000			50,000
Other Debt		558,150			558,176			558,250
Operating Lease Liabilities		91,213			92,402			92,267
Retirement Benefits Payable		25,686			20,139			23,640

Bank of Hawai'i Corporation First Quarter 2026 Financial Results