Bank of Hawaii Corporation third quarter 2021 financial report October 25, 2021 Exhibit 99.2
this presentation, and other statements made by the Company in connection with it, may contain forward-looking statements concerning, among other things, forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. we have not committed to update forward-looking statements to reflect later events or circumstances. disclosure 2 forward-looking statements
3
unemployment experience & forecast source: UHERO, seasonally adjusted Hawaii unemployment rate 4
economic forecast Hawaii unemployment rate 5 source: UHERO
Hawaii real estate market Oahu market indicators – 2021 vs 2020 6 source: Honolulu Board of Realtors, compiled from MLS data
daily arrivals total passenger count* 7 *source: Department of Business, Economic Development, and Tourism, excluding from Canada 7/8/21: testing and quarantine lifted for fully vaccinated U.S. travelers 10/15/20: launch of Safe Travels program 8/23/21: Gov. Ige releases statement urging visitors to refrain from non-essential travel
COVID-19 cases 8 source: Washington Post as of 10/21/21
COVID-19 vaccinations 9 source: Hawaii State Department of Health as of 10/22/21 70.7%total populationfully vaccinated 79.2%total populationat least one dose administered 82.8%12yr+ populationfully vaccinated
3Q financial update
11 core customers continue to drive growth in balances growth from core customers $ in millions note: numbers may not add up due to rounding
12 ample liquidity continuing to build low cost, long duration deposits to fund future growth excess liquidity deployed into high-quality, low-risk investment portfolio
13 positioned for higher rates ample liquidity, cash flow and healthy variable loan mix position us well for higher rate environment note: S&P Regional Banking Index excluding banks greater than $50bn; 3Q numbers are preliminary
financial summary $ in millions, except per share amounts 14 note: numbers may not add up due to rounding
disciplined expenses $ in millions 15 disciplined expense management amidst continued balance sheet growth *volume-related expense growth primarily related to higher mortgage production, broker charges and higher FDIC insurance for deposits.note: numbers may not add up due to rounding 2021 expenses up slightly from pre-pandemic 2019 with investments in innovation and variable expenses partially offset by other cost savings and efficiencies NIE CAGR: 1.5%Honolulu avg inflation: 2.4%
performance metrics 16
17 strong risk-based capital fortress capital position note: 3Q21 regulatory capital ratios are preliminary
3Q credit update
customer relief update 19 100% secured95% paying interest commercial consumer 99.2% of former deferrals are current 94.9% decline in deferrals since June 30, 2020
credit quality $ in millions 20 * 64% of total criticized in CRE with 60% wtd avg LTV
reserve trend 21 $ in millions allowance for credit losses note: balances and coverage ratio based on allowance for credit losses – loans and leases
Q & A
appendix
economic forecast source: UHERO 24
growing low cost deposits 25 continuing to build very low cost, long duration funding $ in millions
26 note: historical dividends adjusted for stock splits unbroken history of dividends recession COVID-19
loan portfolio excluding PPP 27 40% commercial70% real estate securedwtd avg LTV 56%61% w/ BOH ≥ 10 yrsavg balance $0.6MM CRE C&I residential mortgage home equity auto leasing other construction 60% consumer84% real estate securedwtd avg LTV 56%57% w/ BOH ≥ 10 yrs 78% of portfolio secured with quality real estatewith combined weighted average loan to value of 56% note: excludes $276MM in PPP loan balances including deferred costs and fees
28 100% secured with 71% weighted average LTV as of 9/30/21 consumer relief $8 million (0.1%) 59% wtd avg CLTV686 wtd avg FICO23% <700 FICO / >70% CLTV 72% wtd avg LTV721 wtd avg FICO28% <700 FICO / >70% LTV note: zero remaining deferrals in indirect and other (direct installment loans and auto lease)
29 100% secured with 39% weighted average LTV as of 9/30/21100% continue to pay interest commercial relief $130 million (1.1%) 39% wtd avg LTV97% ≤ 65% LTV$5.4MM avg loan note: zero remaining deferrals in leasing or construction
high risk industries $1,489 million (12%) / $1,373 million (11%) excluding PPP 30
retail $695 million (6%) – excluding PPP 31 93% real estate secured56% wtd avg LTVaverage exposure $3.5MMlargest exposure $39MM63% of portfolio has an LTV ≤ 65%98.3% is secured or has essential anchor0.0% unsecured and deferred100% secured or paying interest
lodging $521 million (4%) – excluding PPP 32 82% real estate secured52% wtd avg LTVaverage exposure $9.4MMlargest exposure $40MM81% of portfolio has an LTV ≤ 65%90% of unsecured outstandings to global hotel and timeshare brands0.1% unsecured and deferred100% secured or paying interest
restaurant / entertainment $157 million (1%) – excluding PPP 3342% real estate secured67% wtd avg LTVaverage exposure $1.9MMlargest exposure $29MM38% of portfolio has an LTV ≤ 65%0.0% unsecured and deferred100% secured or paying interest