Bank of Hawaii

2 0 1 9 A N N UA L R E P O R T

Purpose, Progress, Possibilities

W O R K I N G   T O G E T H E R

W I T H   Y O U

C O N T E N T S

D E A R   F E L L O W 
S H A R E H O L D E R S

Chairman’s Message
inside front cover

2019 Financial Report
pg 22

2019 Financial Summary
pg 3

Relative Stock Prices
pg 24

Year in Review
pg 4

BOH Locations  
& Economic Information
pg 25

Our Community
pg 9

Managing Committee
pg 26

Our Employees
pg 12

Board of Directors
pg 28

Client Profiles
pg 14

Shareholder Information
pg 29

Purpose, Progress, Possibilities 
Working Together With You

Bank of Hawaii understands there is no one-size-
fits-all solution to banking. Our employees work 
together to offer products and services that give our 
customers choice. We are proud of our 122-year 
legacy of supporting our customers, while constantly 
progressing and improving so we may continue to 
provide the optimum banking experience.

© 2019, Bank of Hawaii Corporation. Bank of Hawaii®,  
Bank of Hawaii The Private Bank, Bankoh® and the Bank of Hawaii 
logo are registered trademarks of Bank of Hawaii. SimpliFi Mortgage 
and SmartMoney Seminar are service marks of Bank of Hawaii 
Corporation. Bankoh Investment Services, Inc. is a non-banking 
subsidiary of Bank of Hawaii, member FINRA and SIPC. Cardless 
Cash is a trademark of FIS. All other trademarks and service marks 
appearing in this report, in print or online, are the property of their 
respective owners and no claim of ownership is made by their use. 
The individuals and/or owners of any other trademarks, logos, 
brands or other designations or origin mentioned herein did not 
sponsor, approve or endorse this publication.

American Express is a federally registered service mark of  
American Express, used pursuant to a license.

Visa and Visa Signature are registered trademarks of  
Visa International Service Association and are used by pursuant  
to a license from Visa U.S.A., Inc.

The Hawaiian Airlines® Bank of Hawaii World Elite Mastercard®  
is issued by Barclays Bank Delaware pursuant to a license by 
Mastercard International Incorporated. Mastercard and World Elite 
Mastercard are registered trademarks, and the circles design is a 
trademark of Mastercard International Incorporated.

View Bank of Hawaii’s 2019 digital Summary Annual Report, 
featuring videos of our Chairman, clients, community and 
employees at www.boh.com.

As we conclude the second 
decade of the 21st century,  
Bank of Hawaii remains 
consistent in its operating 
results, and well-positioned 
strategically for the next 
decade. 

Diluted earnings per share were a record $5.56, up 6.3% from 
last year. Loans grew 5.2% to $11.0 billion, with balanced 
growth in both our commercial and consumer businesses. 
Deposits grew 5.0% to $15.8 billion. Return on average equity  
for 2019 was an industry attractive 17.7%. Our efficiency ratio 
improved to 55.7% versus 56.7% in 2018. Credit conditions 
were benign throughout the year due, in part, to our hallmark 
culture of conservatism and to solid economic underpinnings  
in our core Hawaii market. Additionally, our board approved 
two dividend increases in 2019, bringing quarterly dividends  
to $0.67 per share.

Risk management remains a key priority for Bank of Hawaii.  
In 2019, Moody’s affirmed our Bank Deposit Long-Term Rating 
at Aa2, placing us among the top 15 financial institutions in the 
U.S. in that category. Additionally, we were recognized once 
again by Forbes magazine as one of America’s Best Banks, as 
well as an industry leader by D.A. Davidson for ESG practices, 
and Barron’s magazine for environmental practices.

Hawaii’s Economy
Hawaii’s economy remained steady in 2019. Employment, visitor activity 
and housing dynamics each exhibited strong fundamentals.

Our seasonally adjusted unemployment rate remained low at 2.6% in 
December 2019, compared with 3.5% nationally.

Our visitor industry achieved record arrivals for the seventh consecutive 
year while spending increased slightly. Hawaii’s visitor arrivals rose to 
10.5 million in 2019, compared to 9.9 million visitors in 2018. Spending 
increased 0.9% percent in 2019 to $17.8 billion. These numbers come 
subsequent to several consecutive preceding years of strong visitor 
counts and spending.

Average median single family home prices on Oahu, our primary market, 
fell slightly by 0.1% to $789,000. Average median condominium prices 
increased 1.2% in 2019 to $425,000. Months of inventory on the market 
of single-family homes and condominiums on Oahu were 2.5 months and 
3.4 months respectively, reflecting continued tight housing dynamics.

 
B A N K O F H AWA I I 2 0 1 9 A N N UA L R E P O R T     1

Our Strategy
Our longstanding strategy remains 
unchanged. We are committed to building 
our business in the Hawaii and West 
Pacific markets, where we have both  
scale and market knowledge advantages.  
We believe steady quality growth guided 
by a commitment to ever higher risk 
adjusted capital return is the foundation 
of financial success. We continue to value 
conservative underwriting and operating 
practices.

We further recognize that the path to our 
continued success lies in maintaining and 
building the client relationships fostered 
throughout our 122-year history in the 
islands while continuing to deliver and 
improve a customer experience relevant 
and appropriate to the changing needs 
and demands of 21st century financial 
services customers.

To do this, we are focused on consistently 
improving the customer experience, 
enabling the digital experience more fully, 
and improving operational efficiency.  
Of course, to achieve these aspirational 
goals, we know we have to ever empower, 
engage and equip our team of over  
2,100 employees. 

Facilities Modernization Efforts
Since 2016, we have launched eight new 
Branches of Tomorrow. These branch 
formats combine fresh contemporary 
design while accommodating the 
changing transacting habits of our 
customers. They are efficient in design 
and are built to provide an omni-channel 
experience unrivaled in our marketplace. 
Our branch format is also designed to 
optimize person-to-person consultation 
on everything from basic budgeting to 
complex trust and estate planning.  
In 2020, we plan to launch four more 
Branches of Tomorrow.

The renovation of our corporate 
headquarters in downtown Honolulu is 
also nearing completion. By the end of 
first quarter 2020, our employees will 
enjoy a fully modernized space that  
offers technical, collaborative and  
mobile conveniences all delivered in  
a contemporary attractive workspace.  
We believe this investment will enable  
us to attract and retain the best talent in 
our market and encourage the requisite 
collaboration and teamwork necessary  
to thrive in the 21st-century workplace.

In addition to enhancing our brand and 
providing our employees and customers 
with fresh and attractive physical 
environments in which to operate, our 
facilities activities have also generated 
substantial financial efficiencies. The step 
up in capital depreciation created by the 
projects has been offset by lower facilities 
expenses and reduced physical square 
footage needs. 

Digital Enhancements
Customers expect digital conveniences  
to be quicker than ever, as well as simple 
and seamless. It’s no surprise that nearly 
75% of Americans most often access 
their bank accounts via online and mobile 
channels, according to an American 
Bankers Association survey. In 2019,  
we continued to enhance our online and 
mobile offerings.

Our online mortgage application, 
SimpliFi Mortgage by Bank of Hawaii, 
has helped us retain our market position 
as Hawaii’s No. 1 residential lender for 
the seventh year in a row. This direct-to-
consumer channel grew meaningfully in 
2019. We also enhanced the online 
direct-to-consumer experience for our 
deposit products, our home equity 
products, as well as our installment loan 
products. Further enhancements are 
forthcoming in 2020.

We were the first in the state of Hawaii  
to integrate Zelle, the popular person-to-
person payment feature, into our mobile 
banking app. Launched in the fourth 
quarter of 2019, we’ve been pleasantly 
surprised by the rate of adoption of this 
payment vehicle. 

In 2019, we also launched Debit Card 
Controls, within our mobile app, to allow 
our debit card consumers to exercise 
more control and have greater security in 
their accounts. These controls allow our 
customers to control debit payments by 
size, type and location.

Our Employees
Attracting, retaining and engaging the 
best talent in our markets is critical to our 
current and future success. We were the 
first local financial institution to increase 
our minimum wage level to $15.00 per 
hour in 2018. In 2019, we continued to 
develop ways to enhance our employees’ 
well-being. During the year, we 

announced three employee financial 
programs designed to support the full 
financial range of our employees.

We’ve created a new employee savings 
product known as the GROW Account. 
This program encourages the habit of 
building an emergency savings nest egg 
by our employees. Through these 
special accounts, we offer a $50 bonus 
to our employees when they reach 
$500 in savings in their GROW Account. 
We offer an additional $100 bonus to 
those employees who then save an 
additional $500. As you may know, an 
alarming level of Americans do not have 
money saved and available to meet 
typical unforeseen expenses. We hope 
this new program helps our team build 
healthy and important savings habits 
for the long term.

We also created a new Student Loan 
Assistance Program. Student loan debt  
is a significant impediment to a key 
demographic sector of our national 
community. This new program provides 
$100 per month, up to a lifetime 
maximum of $10,000, for an individual 
employee’s student loan debt. As of the 
end of 2019, we had over 100 employees 
signed up for this generous program.

Finally, we created a new Employee 
Mortgage Program. This program provides 
our employees with a discount of up to 
1% off of prevailing market rates for their 
primary residences. This is an attractive 
retention tool for Bank of Hawaii given the 
high cost of housing in our islands.

Our College Assistance Program, 
launched in 2016 with Chaminade 
University of Honolulu, continues to be 
popular with employees seeking their first 
college degree. With 55 participants as  
of October 2019, we look forward to our 
first bachelor degree graduates in 2020.  
To enhance the program, we began a  
new partnership with the University of 
Hawai‘i’s Community Colleges, where 
employees can earn an associate’s of arts 
degree in under three years, with the 
same tuition reimbursement benefit.

We continued to support the education  
of employees’ children and grandchildren 
through our Bank of Hawaii Foundation 
Scholarship. In 2019, we awarded  
22 scholarships, and since 2014, have 
funded 171 scholarships totaling 
$602,500.

Chairman’s Message

Our Community
Our community support comes in many 
forms—monetary donations, hands-on 
activities, grants and board involvement. 
In 2019, our “Bankoh Blue Crew” 
volunteered more than 15,000 hours  
of their time in 154 community-based 
events to help nonprofits fulfill their 
missions.

Employees also generously donated a 
record-breaking $860,000 to nonprofits 
through our Live Kōkua Giving Campaign. 
2019 marked our 10th anniversary of this 
annual giving effort, which is a very 
personal endeavor for our employees. 
They not only vote online for their 
preferred nonprofits, but take the lead in 
organizing creative fundraisers over the 
span of several weeks.

Together, Bank of Hawaii, our foundation, 
employees and retirees donated more 
than $2.9 million to over 400 
organizations in 2019. This consistent 
support addresses a wide array of causes 
within the health and medical industry, 
social services, conservation/
environmental, performing arts,  
and child and senior services. 

Our commitment to diversity and 
inclusion is woven into our core values of 
excellence, integrity, respect, innovation, 
commitment and teamwork. For the third 
year in a row, we supported the Honolulu 
Pride Parade & Festival. In 2019, we 
increased our sponsorship to the 
visionary level, and were proud to make a 
statement with 300-plus BOH marchers.

Progressing Toward  
Environmental Sustainability
Reducing energy consumption remains 
one of our top priorities. We have set 
ambitious short-term goals to meet the 
challenge of operating in a more 
sustainable fashion.

Within the next couple of years, our goal 
is to meet 100% of our electrical needs 
from renewable sources, including 
investment matches. Through 
conservation and energy-efficiency 
efforts, such as building management 
systems and infrastructure 
modernization, we have already cut our 
energy use by half since 2012.

Modernization of our branch and 
company headquarters also includes solar 
installations. Currently, 14 facilities have 

solar, and we are looking at additional 
ways to increase our use of solar power, 
including the addition of energy storage 
systems. In the past few years, roof-
mounted PV solar panels have reduced 
our utility-provided energy consumption 
while additional solar system installations 
are designed to double the reduction (or 
more) of each building’s electrical load. 

Our plan to reduce paper usage in half by 
2022 is supported by utilizing new digital 
resources, reducing the amount of paper 
required for transactions, and imaging 
records to reduce storage costs. Other 
conservation efforts include increased 
subsidies for employee bus passes to 
encourage use of public transport, 
subsidies for employees who bike to work, 
plus the installation of water stations to 
reduce single-use plastic bottles.

Our sustainability goals help to support 
Hawaii’s Clean Energy Initiative to 
produce 100% of the state’s electricity 
through renewable sources by 2045.  
We look forward to finding additional 
opportunities to continue operating in  
a sustainable manner.

Aloha and Mahalo to  
Mary Bitterman and Bob Huret
I want to wish a fond aloha to two  
of our directors—Mary Bitterman and 
Robert Huret—who will retire from our 
Board at our 2020 annual shareholders 
meeting. No two individuals have served 
our organization more exceptionally than 
Mary and Bob. Their combined counsel  
to numerous Bank of Hawaii CEOs over 
the years cannot be dimensioned.

Mary Bitterman, president of The Bernard 
Osher Foundation, has served on our 
board since 1984, and has served 
distinctively as our Lead Independent 
Director since 1999. In addition to serving 
as Chair of the Nominating & Corporate 
Governance Committee, she served on 
our Audit & Risk Committee and the 
Human Resources & Compensation 
Committee. Mary has a deep 
understanding of our organization and 
community, and I will miss her keen 
insight, valuable leadership and guidance 
she has provided over the years.

Bob Huret has served as a director since 
2000, as vice chairman of our Audit & Risk 
Committee and a member of our 
Nominating & Corporate Governance 
Committee. Bob has brought exceptional 

knowledge and wisdom to our company 
through his experience as a banker, as 
Founding Partner of FTV Capital, a 
private equity firm, and as chairman of 
Huret Rothenberg & Co., a private 
investment firm. 

Also, Director Clinton Churchill retired 
from our Board in April 2019 after  
26 years. He served on our Audit & Risk 
Committee from 2001 to 2017, and 
chaired it for 15 of those years. Clint had  
a distinguished military and business 
career, and served on many nonprofit 
boards to make Hawaii a better place.

In 2019, we welcomed three new 
members to our board, John Erickson  
and Josh Feldman in January, and 
Michelle Hulst in July. John Erickson 
joined us with 31 years of diverse banking 
experience with Union Bank of California, 
where he retired in 2014 as vice chairman. 
During his tenure at Union Bank, John 
served as both chief risk officer and chief 
corporate banking officer. Josh Feldman is 
president and CEO of Tori Richard Ltd., a 
leading Hawaii apparel retailer recognized 
globally for its creative design. Josh brings 
excellent local knowledge of the Hawaii 
business community as well as a strong 
retail background. Michelle Hulst is a 
group vice president with Oracle Data 
Cloud, and brings with her great expertise 
in technology, data management and 
digital marketing.

In Closing
As we embark on a new decade,  
we look forward to the possibilities that  
lie ahead for our shareholders, employees, 
customers and community.

Mahalo nui loa,

Peter S. Ho
Chairman, President and CEO

B A N K O F H AWA I I 2 0 1 9 A N N UA L  R E P O R T     3

2 0 1 9   F I N A N C I A L   S U M M A R Y

Bank of Hawaii Corporation and Subsidiaries (dollars in thousands, except per share amounts)

FOR THE YEAR ENDED DECEMBER 31 

2019 

2018

Earnings Highlights and Performance Ratios
Net Income  
Basic Earnings Per Share  
Diluted Earnings Per Share 
Dividends Declared Per Share 
Net Income to Average Total Assets (ROA)  
Net Income to Average Shareholders’ Equity (ROE)  
Net Interest Margin 1  
Efficiency Ratio 2  
Market Price Per Share of Common Stock:
          Closing  
          High 
          Low  

AS OF DECEMBER 31

Statements of Condition Highlights and Performance Ratios
Loans and Leases  
Total Assets 
Total Deposits  
Other Debt  
Total Shareholders’ Equity  
Book Value Per Common Share  
Allowance to Loans and Leases Outstanding 
Full-Time Equivalent Employees   
Branches and Offices  

FOR THE QUARTER ENDED DECEMBER 31

Earnings Highlights and Performance Ratios
Net Income  
Basic Earnings Per Share  
Diluted Earnings Per Share  
Net Income to Average Total Assets (ROA)  
Net Income to Average Shareholders’ Equity (ROE)  
Net Interest Margin 1  
Efficiency Ratio 2  

$ 

$ 

 225,913    
  5.59    
  5.56   
 2.59    
1.29   %  
17.65   %  
3.03   %  
55.68   %  

95.16    
95.68   
 66.54    

$  10,990,892    
 18,095,496   
15,784,482   
 85,565   
1,286,832   
32.14  
 1.00   %  
2,124    
 68    

$ 

$ 

 58,143   
 1.46   
  1.45  
1.29   %  
17.84   %  
2.95   %  
54.26   %  

$ 

$ 

 219,602
 5.26 
  5.23  
 2.34  
1.29   %
17.63   %
3.05   %
 56.71   % 

 67.32
 89.09 
 63.64 

$   10,448,774  
17,143,974  
  15,027,242 
135,643 
   1,268,200 
 30.56  

$ 

 $ 

1.02    % 

 2,122
 69 

53,911
 1.30 
1.30 
1.26    % 
17.05   % 
3.10   % 
57.75   %  

1  Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets. 
2  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
Year in Review

WITH YOU,  
FOR YOU

At Bank of Hawaii, we have a clear understanding of our purpose. 
As a trusted partner in the success of all our stakeholders—
shareholders, customers, employees and community—we rely 
on the timeless guidance of our vision and values to serve all  
of them. Constantly evaluating our performance, we take a 
proactive approach to adapting our service to meet our 
customers’ changing needs, and to providing the best workplace 
we can for our employees, while also bringing consistent value  
to our shareholders and to our community.

One measure of our success is the recognition we continue to receive. 
Here’s a snapshot of our 2019 accolades:

•  D.A. Davidson ranked Bank of Hawaii No. 1 for ESG (Environmental, 

Social, Governance) among all financial institutions in the U.S.

•  Barron’s magazine ranked BOH No. 4 among U.S. financial institutions 

and No. 40 overall in its “100 Most Sustainable Companies” list.

•  WomenInc. magazine named BOH’s five women board members  

to its 2019 “Most Influential Corporate Board Directors” list.

•  Moody’s Investors Service:
  –  affirmed our Aa2 “Bank Deposit Long-Term Rating,” placing  

   BOH among the top 15 financial institutions in the U.S., and the  
   highest in Hawaii; and

  –  rated BOH with an A1 “Baseline Credit Assessment,” placing us  

   among the top six institutions in the U.S.

•  Forbes magazine:
  –  ranked us one of “America’s Best Banks” for the eleventh consecutive  
   year; making BOH the only local bank to be recognized in all 11 years  
   the list has been compiled; and

  –  ranked us No. 28 out of 60 nationally in its “World’s Best Banks” list.

•  Pacific Business News selected BOH as Company Honoree and 

employee as Individual Honoree in its Business of Pride awards for 
diversity and inclusion.

•  The readers of Honolulu Star-Advertiser, Hawaii Tribune-Herald and  

The Garden Island selected BOH as Hawaii’s “Best Bank.”

O F F E R I N G   D I G I T A L 
C O N V E N I E N C E S   A N D 
E X C E P T I O N A L   P E R S O N A L 
C O N N E C T I O N S

We know that our success depends on 
our ability to build strong relationships 
with our customers in ways that will 
serve them over generations. We’ve 
made significant investments in 
keeping our services convenient.
Whether in person in our branches, 
within our mobile banking app, online, 
by phone or ATM, it’s a privilege to 
provide our customers with the options 
that work best for them.

Branch Banking
Our Branch of Tomorrow network is 
growing. In July 2019, we celebrated 
the opening of our first in-store 
Branch of Tomorrow at the new 
Safeway store in Kahului, Maui. On 
Oahu, our new Iwilei Branch on 
Dillingham Boulevard is scheduled to 
open in early 2020. In October, we 
opened a four-teller Kahala Mall 
Kiosk, located between Longs Drugs 
and Macy’s, with extended hours 
seven days a week, while our new 
Waialae-Kahala Branch is under 
renovation.

On Hawaii Island, plans are underway 
to build a new Hilo Branch, and by 
mid-2020, groundbreaking will kick 
off construction for our new West 
Pacific Regional headquarters and 
branch in Tamuning, Guam.

Our Branch of Tomorrow 
modernizations include energy-
efficient features and provide 
upgraded technology, easy-deposit 
ATMs (with Cardless Cash) and Wi-Fi.

In August, six-and-a-half years after 
announcing our plans to leave 
American Samoa, we closed our 
remaining operations in the territory. 
To help with the transition, we donated 
our fixed assets, including our Tafuna 
Branch building and local residence, to 

B A N K O F H AWA I I 2 0 1 9 A N N UA L  R E P O R T     5

Above: BOH's 22nd floor renovation was completed in March 2019. Appropriately named Ka Nu‘u 
Ho‘oulu I Ka Ho‘olōkahi Mau—“the summit of growth and inspiration, aligned in enduring unity,” 
the space features sweeping views from the mountains to Honolulu Harbor, and state-of-the-art 
technology, modern design elements and numerous collaborative work areas.

Top: BOH’s Kahala Mall Kiosk is the first of its 
kind and opened in October 2019 to conveniently 
serve the Kahala community. 

Bottom: Debit Card Controls can help consumers 
prevent fraud by allowing them to set specific 
preferences within the BOH mobile app.

the American Samoa government for 
the purpose of starting its own bank. 
Territorial Bank of American Samoa 
opened its doors in 2016.

Modernizing Our Corporate 
Headquarters
The transformation of our locations 
also extends to our downtown 
Honolulu corporate headquarters, 
which is scheduled to be complete  
by the end of the first quarter of 2020. 
One of the most dramatic changes  
is to the topmost 22nd floor, which  
has been completely renovated. 
Appropriately named Ka Nu‘u Ho‘oulu  
I Ka Ho‘olōkahi Mau, “the summit of 
growth and inspiration, aligned in 
enduring unity,” the space features 
sweeping views from the mountains  
to Honolulu Harbor, state-of-the-art 
technology, numerous collaborative 
work areas, and a welcoming space  
for official celebrations and gatherings.

Digital Banking Solutions  
for Consumers
We continue to invest in ways to 
provide digital banking options for  
our customers. In September, we 
embedded Zelle directly into our BOH 
mobile app, allowing customers to 
safely send and receive money within 
minutes to almost anyone they know 
with a bank account in the U.S. 
Transactions via Zelle can be easily 
sent using an email address or a  
U.S. mobile phone number.

In April, we launched Debit Card 
Controls to allow customers the 
flexibility to temporarily turn their 
debit cards on or off, control their 
cards by location, merchant and 
transaction types, and set spending 
limits and customizable alerts.  
These controls are designed to give 
our customers more security for their 
accounts and help prevent fraud.

A New boh.com 
We’ve also been proactive in 
improving ways for our customers  
to bank online. In November, we 
introduced a completely redesigned 
boh.com. The new, mobile-friendly 
website works seamlessly on a 
smartphone, tablet or desktop, 
making it easier for customers to 
access the information they need  
on any device.

The redesigned site has been 
streamlined to be more intuitive. 
Some of the new features include  
an enhanced Branch & ATM map,  
a side-by-side comparison product 
tool, and a product finder, which 
provides customers personalized 
recommendations after answering  
a few short questions. Additionally,  
we added the ability for customers  
to now open CDs and Bankohana 
accounts online.

Year in Review

authenticate them as rightful account 
holders. Phase 2 of the upgrades will 
continue to be implemented in 2020.

Mortgage, Consumer and Dealer 
Indirect Lending 
We understand that for many people, 
buying or building a home is the 
fulfillment of a dream, and one of the 
biggest financial decisions they may 
make. The process of applying for a 
mortgage became much more 
convenient for buyers or those 
homeowners looking to refinance an 
existing mortgage through our fully 
integrated online application, SimpliFi 
Mortgage by Bank of Hawaii. The online 
application gives customers the best of 
both worlds—personal connection to 
our local loan officers and the ability to 
use technology to apply, seamlessly 
upload documents, e-sign, review 
disclosures and more online.

We continue to take a leadership role 
in streamlining VA home loans and 
loans for Department of Hawaiian 
Home Lands (DHHL) lessees due to 
our depth of understanding of the 
complexities involved. We remain the 
only Hawaii-based lender providing 
DHHL loans.

Bank of Hawaii continues to be an 
overall leader both in home equity and 
residential lending. We were honored 
to again be named the No. 1 residential 
lender in Hawaii and Guam, both for 
the number of residential loans 
recorded and total dollars loaned in 
2019. Local processing, underwriting 
and servicing of home equity, 
construction and mortgage loans 
ensure that our customers get the 
products and flexibility of service that 
best fit their needs. 

We have expanded our auto lending in 
the West Pacific, and continue to be 
No. 1 in that marketplace. We continue 
to be the No. 2 auto lender in the state 
of Hawaii, and our combined auto loan 
and leasing portfolios grew to $825.2 
million, as of December 2019. Our 
flexible, efficient auto loan servicing, 
which is handled locally, helped us to 
grow our dealer partnerships in 2019.

Commercial Real Estate Lending 
When it comes to housing prices, 
Honolulu is one of the most expensive 
cities in the U.S. There is a limited 
supply of affordable housing due to the 
high costs of land and construction. 
Bank of Hawaii has always been 
committed to affordable housing 
solutions, and our support for Aloha 
United Way’s ALICE (Asset Limited 
Income Constrained, Employed) 
Report is helping us to sharpen our 
focus to find more ways to work with 
developers in an effort to help create 
more affordable and workforce 
housing across Hawaii and the 
Western Pacific.

In 2019, the Honolulu City Council 
passed Bill 7, a five-year pilot program 
to attract developers by allowing small 
lot developments to be built on lots  
of 20,000 sq. ft. or less, with higher 
density and smaller setbacks than 
were previously permitted. We 
partnered with a developer to fund  
the first project under Bill 7, Puuhue 
Apartments, which is a planned 
four-story building in Honolulu  
that will bring 25 affordable rentals  
to market.

Queen Emma Tower, once a neglected 
building in the heart of Honolulu, will 
be fully renovated by Āhē Group and 
create 71 affordable rental units. In 
addition to Queen Emma Tower, the 
bank helped finance 22 units of 
affordable housing for Maui seniors at 
Hale Mahaolu Ewalu II, developed by 
Hale Mahaolu. The bank also financed 
35 units of affordable family housing 
rentals on Kauai at Waimea Huakai, 
which are currently under construction 
by Āhē Group.

More than 320 affordable housing 
units started or completed 
construction in 2019, thanks in part to 
Bank of Hawaii, and almost 610 more 
are in the pipeline. Bank of Hawaii 
plans to continue developing other 
partnerships to meet the financing 
needs for affordable and workplace 
housing in our community.

Credit Cards 
In 2019, MyBankoh credit card holders 
were switched to Mastercard from 
Visa and American Express, as 
Barclays took ownership of the 
accounts. The three cards that were 
converted were the Bank of Hawaii 
American Express Card with 
MyBankoh Rewards, the Bank of 
Hawaii Visa Signature Credit Card with 
MyBankoh Rewards, and the Bank of 
Hawaii Elite American Express Card 
with MyBankoh Rewards. The change 
did not affect our debit cards nor our 
Hawaiian Airlines Bank of Hawaii 
World Elite Mastercard.

Call Center Upgrades 
Phase 1 of cloud-based technology 
upgrades were made to our Call 
Center in 2019 to provide greater 
flexibility, convenience and security  
in communicating with customers.  
The enhancements route calls more 
efficiently and provide callers with 
faster access to basic topics, such as 
password resets and balance inquiries. 
Call Center agents now respond to 
chat inquiries via select pages on  
boh.com through a new, live web  
chat feature. Additional security to  
Call Center communications was 
implemented via one-time passcodes, 
which callers may receive via text or 
email, so that our agents can 

B A N K O F H AWA I I 2 0 1 9 A N N UA L  R E P O R T     7

At left: The Private Bank's renovated third 
floor includes state-of-the-art technology  
in conference rooms, paired with modern 
design elements and traditional artwork.

One of our wealth management 
services includes assistance with 
establishing and administering 
nonprofit foundations and charitable 
trusts. Responsible for approximately 
120 grant-making foundations, our 
Charitable Foundation Services team 
has been helping individuals and 
corporations devise the best, most 
effective ways to direct and manage 
their giving through private charitable 
trusts and foundations. Many of these 
nonprofits distribute grants, and our 
Charitable Foundation Services team  
is responsible for overseeing grant 
requests, review and distributions.

As the largest administrator of 
irrevocable trusts in the state with 
more than $3 billion in assets under 
management, Bank of Hawaii has the 
depth of expertise necessary to 
handle every aspect of trust accounts 
for our clients.

Investment and Insurance Services
Bank of Hawaii continues to be the 
premiere provider of fiduciary and 
investment services in Hawaii and the 
Pacific. We remain the biggest 
municipal bond manager in the state  
of Hawaii, and manage three tax-free 
bonds. Our trusted team of certified 
financial planners (CFP) and certified 
financial analysts (CFA) manages 
almost $7 billion in assets through a 
wide array of advisory and brokerage 
services.

In 2019, we introduced our investment 
and insurance services in Guam, 
helping customers to navigate through 
these important aspects of their 
financial journey. We continue to 
enhance our investment and insurance 
capabilities with the goal of providing 
our clients access to comprehensive 
wealth management solutions to 
address their accumulation, protection 
and wealth transfer needs.

T H E   P R I V A T E   B A N K

Bank of Hawaii The Private Bank takes a holistic approach to providing 
personalized wealth management services through every stage of life. In addition 
to basic banking, The Private Bank offers a comprehensive array of services, 
including customized lending; investments; insurance; financial, estate and tax 
planning; charitable giving; and trust services. The Private Bank team is a trusted 
ally in anticipating and meeting the complex and unique needs of high-value 
clients. We have taken a leadership role in utilizing new technology to make these 
specialized services as convenient as possible, and we take a team approach to 
developing integrated strategies to deliver exceptional results over time.

In October, we completed renovations of the third floor of our downtown Honolulu 
bank building. The entire floor is designed for serving customers of The Private 
Bank and Trust Services Group, and includes upgraded technology and multiple 
meeting rooms.

As part of our International Client Banking Division, we are working toward 
opening a representative office in Tokyo. Our new representative will act as  
a liaison to network among banks, CPAs, tax advisors and other financial 
professionals on behalf of Bank of Hawaii.

Trust, Estate and Financial Planning
The Private Bank team members create a personalized plan to help each client 
meet his or her immediate and long-term financial goals, offering guidance in 
analyzing assets and tax implications, and investment opportunities to 
optimize returns. 

One of our specialties is creating multi-generational wealth strategies. Our 
dedicated relationship managers guide clients through succession planning, 
and business transitions or sales to help create a lasting legacy that reflects 
the values and priorities of one generation while engaging younger generations 
to carry on successfully. 

Year in Review

B A N K I N G   F O R   B U S I N E S S

As the marketplace changes and develops at an increasingly rapid pace,  
Bank of Hawaii is positioned to assist customers meet the unique challenges  
of doing business in Hawaii. We provide leading-edge banking technology  
and sound financial advice for every size and type of business—entrepreneurs, 
nonprofits, family-owned businesses and global corporations, local healthcare 
practitioners and international businesses. Whether it’s helping a medical 
practice upgrade equipment, finding the best merchant services, or helping a 
customer apply for a Small Business Administration (SBA) loan or finance energy 
sustainability measures, Bank of Hawaii has innovative solutions to help small 
businesses grow and succeed.

Digital Banking Solutions for Businesses
In 2019, we began an upgrade to our digital resources for our business clients.  
We invested more than $1.5 million in our platforms to prepare them for continued 
enhancements and emerging technologies. This investment in upgrades for online 
Business Banking, ACH platform, Lockbox Services, Wire Monitoring and 
Processing and Client Access will continue into 2020. These advancements 
underscore our commitment to enhanced security and delivery of complex 
processing or reporting needs. We pride ourselves on ensuring robust finance 
management functions that help our business customers improve efficiencies and 
deliver better service to their own customers.

As digital payment options for businesses continue to rapidly evolve, we continue 
to scope and construct solutions to meet the needs of our customers. We 
launched new Merchant Service solutions that work for large and small businesses 
by collaborating with Clover and OptBlue. The Clover point-of-sale system not 
only accepts swipe-card, chip-card, and contactless payments, such as Apple Pay, 
but also issues refunds, manages tips, applies discounts, performs closeout 
reporting and more. The OptBlue program allows business customers to accept 
American Express card payments at a more competitive rate, and offers 
consolidated billing and reporting via Bank of Hawaii.

We also developed new software to make it easier for our business customers to 
stay compliant with the evolving technical and operational payment card industry 
(PCI) standards they need to follow to ensure that cardholders’ credit card data 
remains protected.

Commercial/Corporate Banking
Our commercial and corporate bankers take the time to understand our customers’ 
businesses—from their operations to their long-term goals. Their deep 
understanding of the Hawaii marketplace combined with our comprehensive 
products and services allow them to come up with competitive and versatile 
solutions for our clients. The team is highly experienced in working with many 
different industries and works closely with other financial services experts across  
the bank to help provide tailored strategies and recommendations for a broad range 
of needs, including real estate and construction loans, liquidity management and 
equipment financing.

In 2019, we continued to be the largest commercial mortgage lender in the state of 
Hawaii. Our team finds customized financial solutions for owners, developers and 
investors with multi-family, retail, industrial, office and mixed-use properties.

Captive Insurance
Bank of Hawaii’s solid captive 
insurance industry service and 
leadership continue to grow this 
business segment. With over 95 
diverse captive clients, our Captive 
Insurance Services team continues to 
support the Hawaii domicile as we 
have done since the industry’s 
inception in 1986. Bank of Hawaii 
currently oversees more than $1.5 
billion in investment assets and 
deposits for Hawaii-based captive 
insurance businesses.

Many local, national and 
international businesses turn to Bank 
of Hawaii for advice and tailored 
services to meet their captive’s 
banking and investment needs and 
objectives. We help in evaluating 
current risk and financing structures, 
as well as in developing portfolio 
solutions to build reserve assets.  
As reserve funds grow over time 
through premiums paid and healthy 
claims experiences, clients can allow 
for increased insurance coverage 
options and improved cash flow and 
insurance expense management.

While many large corporations have 
long been utilizing captives, we see 
good future growth potential for 
developing businesses and established 
middle market companies from a 
range of industries. In particular,  
we are seeing increased interest from 
Japanese companies that have been 
aware of the captive industry for  
a number of years, but were more 
gradual in deploying captive 
strategies.

B A N K O F H AWA I I 2 0 1 9 A N N UA L R E P O R T     9

Working Together to Support

OUR COMMUNITY

To address the very real issues that we face today in our island 
home, Bank of Hawaii collaborates with organizations that are 
focused on bringing about long-term improvements.

Sustaining healthy, thriving communities happens when we invest 
in the nonprofits supporting and transforming families and 
individuals. That’s why we continue to partner with nonprofits— 
to help them bring about necessary changes and find new ways  
to make a difference.

Our community support in 2019 reflects the wide range of 
interests of our employees and the needs of our community.  
Here are a few examples.

Bank of Hawaii, its 
Foundation and employees 
contributed approximately 
$2.9 million in 2019 to 
400 organizations.

Above: Nearly 300 BOH employees, family 
and friends worked together on a variety of 
‘aina-based service projects at Papahana 
Kuaola for Community Service Day.

Our Community

At left: Catholic Charities  
Laulima House on Oahu.

Catholic Charities  
Hawai‘i Laulima House
Catholic Charities Hawai‘i received a 
donation of $100,000 over four years 
from Bank of Hawaii Foundation in 
support of its Laulima House 
campaign to expand child and family 
services. Located on Oahu, Laulima 
House provides a private home-like 
setting for family-strengthening visits 
between keiki and their biological 
parents, or children being considered 
for foster care.

Hawaiian Community Assets
Hawaiian Community Assets (HCA) 
provides housing and financial 
counseling services to low- and 
moderate-income communities, with 
a focus on helping Native Hawaiians 
achieve economic self-sufficiency. 
Bank of Hawaii Foundation donated  
a $25,000 grant to HCA’s Next 
Generation Homeownership 
Initiative. Using its nationally 
recognized Kahua Waiwai: Building  
a Foundation of Wealth curriculum, 
HCA delivers intergenerational 
financial and homebuyer education 
to increase the financial capacity of 
500 Native Hawaiian families so 
they may own homes on or near 
Hawaiian Home Lands.

B A N K   O F   H A W A I I 
F O U N D A T I O N

Supporting the vision and 
dedication of local nonprofits 
via Bank of Hawaii Foundation 
grants is one of the ways we 
work to improve lives in the 
communities we serve. We 
invest in a wide range of 
important community needs, 
such as education, housing, 
community development, 
environmental sustainability, 
literacy and the arts. In 2019, 
Bank of Hawaii Foundation 
supported 61 nonprofits with 
70 grants totaling $1.2 million.

L I V E   K Ō K U A 
Total Employee Giving  
More than $8.2 million since 
2007 to more than 400 local 
nonprofits

G I V I N G   C A M P A I G N 
$860,000  
A record-breaking amount 
donated to 25 nonprofits in 2019, 
including neighbor islands and 
Guam

V O L U N T E E R I S M 
15,459 Hours / 154 Events

311

HOURS TO  
PREPARE 2019  
TAX RETURNS

$362,000

BACK TO THE COMMUNITY

2 0 1 9   F I N A N C I A L   E D U C A T I O N / C O M M U N I T Y 
R E I N V E S T M E N T   A C T   ( C R A )

Helping Low-Income Families Receive Their Income Tax Refunds
During tax season, 22 BOH volunteers on Oahu and Hawaii Island partnered with 
Goodwill Hawaii and Honolulu Community Action Program to provide free tax 
preparation services for eligible taxpayers as part of the Volunteer Income Tax 
Assistance (VITA) program. Our volunteers donated approximately 311 hours to 
prepare 219 tax returns that returned $362,000 back to the community. This 
includes $110,865 in federal earned income tax credits that working families and 
individuals would not have received if they hadn’t filed. VITA offers free tax help 
to people in our communities who can benefit the most from tax refunds, 
including people with disabilities, the elderly, those with limited understanding  
of English, and those who make approximately $54,000 or less.

B A N K O F H AWA I I 2 0 1 9 A N N UA L R E P O R T     1 1

E M P L O Y E E   
S P O T L I G H T

Priscilla “Cilla” Arelliano —  
2019 Ola Pono Awardee

Above: Bank of Hawaii employees and 
retirees raised a record $860,000 for 25 local 
nonprofits in 2019.

Left: For the second year in a row, Bank of 
Hawaii returned to Waikiki to participate in 
Hawaii’s largest and most colorful LGBTQ 
event—the 2019 Honolulu Pride Parade & 
Festival!

L I V E   K Ō K U A   V O L U N T E E R   P R O G R A M

Our Bankoh Blue Crew  
Out in Full Force 
Hands-on outreach in our community 
has always been part of our DNA. As 
our communities grow and evolve, our 
employee-led Live Kōkua Volunteer 
Program looks for more ways to give 
back to the communities we serve.

Community Service Day
In September, Bankoh Blue Crew 
volunteers turned out for our  
14th annual Community Service Day  
on Windward Oahu. Partnering with 
Papahana Kuaola in He‘eia, BOH 
employees, family members and friends 
helped plant more than 800 native 
trees, rehabilitate one mile of trail, clean 
two lo‘i, and propagate more than 
3,000 native plants. Leaders from 
Papahana Kuaola integrated Hawaiian 
knowledge into the volunteers’ 
environmental restoration and 
economic sustainability activities.

Honolulu Pride Parade & Festival
In October, BOH volunteers 
participated in Hawaii’s largest and 
most colorful LGBTQ event, the 2019 

Honolulu Pride Parade & Festival in 
Waikiki. Attendees danced along with 
our 300 volunteers, who marched in 
the parade in support of the LGBTQ 
community. We are proud that one of 
our employees, Andy Downes, was 
recognized with one of Pacific Business 
News’ 2019 Business of Pride Awards 
for his part in developing our Diversity 
and Inclusion program. Bank of 
Hawaii is also honored to be one of 
the companies that received the 
corporate award for making Hawaii’s 
workplace more inclusive.

Live Kōkua Giving Campaign
For the 10th anniversary of the annual 
employee giving campaign, BOH 
employees across the Pacific 
exceeded our $775,000 goal and 
raised a record-breaking amount of 
$860,000 for 25 local nonprofits, 
ranging from health and educational 
programs to food and housing 
services. Employees fundraised 
through bake sales, silent auctions 
and other activities for organizations 
they care deeply about.

Above: Cilla and Kevin Arelliano

We are incredibly proud that  
Honolulu magazine honored long-
time Bankoh Blue Crew volunteer 
Priscilla “Cilla” Arelliano, and her 
husband Kevin, as 2019 Ola Pono 
Awardees for their outstanding 
volunteerism in donating their time 
and talents to make our islands a 
better place. From 2016 to 2019,  
Cilla volunteered at 202 events 
totaling 679 hours through our  
Live Kōkua Volunteer Program.  
Cilla gives back whenever she can 
and encourages fellow teammates  
to do the same. As a show of 
appreciation, the bank surprised  
the Arellianos with a three-night stay 
at the Aulani, a Disney Resort and 
Spa and a $1,000 donation, in  
Cilla’s honor, to the organization(s)  
of her choice.

Our Employees

ALWAYS
MOVING
FORWARD

At Bank of Hawaii, much of 
our focus on innovation and 
growth centers on our people. 
That’s because we have 
always recognized that 
investing in their success is 
the key to the continuing 
success of our business, our 
customers and our 
community. As banking 
becomes more digitized to 
meet customers’ changing 
expectations, our employees 
need the broad range of 
specialized skills to adapt and 
thrive while delivering the 
exceptional service our 
customers deserve.

Professional Development  
Each of our employees brings 
diverse experience and a unique 
learning style to our workplace, and 
we want to retain them while also 
helping them find opportunities 
across the bank to grow in their 
careers. 

One of the bank’s biggest 
continuing investments is in the 
personal and professional 
development of our employees to 
give them more opportunities to 
learn and grow toward leadership 
positions, or to equip them to 
explore potential new career paths 
via our leadership, skills and 
management training. In 2019, more 

Above: Juliemay Peralta, Cynthia Esparza and Arliza Borja Losano take a victory lap around  
the Neal S. Blaisdell Center Arena in honor of earning their associate degrees from Chaminade 
University in May 2019.

than 32,000 hours of training was 
provided by Bank of Hawaii. 

In 2019, we enhanced our Tuition 
Assistance Program (TAP) by offering 
new discounts for undergraduate and 
graduate-level courses at Hawaii 
Pacific University, whether online or  
in person, as well as graduate-level 
courses at Chaminade University of 
Honolulu. TAP brings new choices  
to our employees in ways to obtain 
specialized knowledge in their 
professional field through single 
courses, or by pursuing an associate’s 
degree, a bachelor’s degree, or an 
advanced degree.

A new enhancement to Bank of 
Hawaii’s College Assistance Program 
(CAP) was introduced in 2019 to 
include a new partner. Employees can 
now pursue an associate of arts 
degree with online courses through 
the University of Hawaii’s Community 
Colleges (UHCC). The UHCC degree 
is an accelerated program that allows 
participants to earn an associate’s 
degree in approximately 2.5 years. 
The UHCC program joins the CAP 
degree program offered in partnership 
with Chaminade University of 
Honolulu. Started in August 2016 to 
provide employees without a 
bachelor’s degree a way to make a 
college education a reality, 55 BOH 
employees were enrolled in CAP for 
the fall 2019 term.

Diversity and Inclusion
The bank has always promoted a 
culture of diversity and inclusion, and 
we continued to promote inclusiveness 
in the workplace through our Fostering 
Workplace Excellence training series. 
Two new training modules were added 
to the curriculum in 2019: Bystander 
Intervention training (the choice to 
intervene as a positive influence in 
potentially harmful situations to help 
prevent harassment) and Unconscious 
Bias training (the unconscious feelings, 
attitudes and beliefs that we all have 
about people and/or situations).

Bank of Hawaii was also named a 
company honoree for Pacific Business 
News’ Business of Pride Awards. As a 
longtime supporter of the LGBTQ 
community, Bank of Hawaii has 
sponsored many events and programs, 
including the Honolulu Rainbow Film 
Festival and the 2019 Honolulu Pride 
Parade & Festival. Bank of Hawaii’s 
Diversity and Inclusion program 
includes workplace culture and 
environment; learning and 
development; and attracting and 
retaining diverse talent and 
community engagement by offering 
connection, support, information and 
networking and leadership 
opportunities.

B A N K O F H AWA I I 2 0 1 9 A N N UA L  R E P O R T     1 3

Top left: 2019 BOH summer interns 
Tari-Lynn Manin (left) and Ford Nakagawa 
brainstorm during BOH's annual College 
Career Connections event, a networking and 
skill-building program designed to generate 
interest and create opportunities for 
potential interns and new hires.

Bottom right: Our six-month Bank 
Associates (BA) program includes a 
community service project. BOH’s 11 BAs 
organized an event in November to help 
Oahu nonprofit Kahumana Organic Farm 
and Café Community, whose mission  
is to co-create a healthy, inclusive and 
productive farm-based community with 
homeless families, people with disabilities 
and youth. Nearly 70 bank employees 
came out to volunteer, including 2019 BA 
Preston Young.

BY T H E N U M B E R S  (2 0 1 9)

College 
Assistance 
Program

Free tuition toward an  
associate’s or bachelor’s degree.

CURRENTLY ENROLLED 
IN OCTOBER TERM

55 EMPLOYEES  
9,460

CLASSROOM HOURS

Summer Intern 
Program

This eight-week program is 
designed to attract and develop 
emerging talent.

Bank Associate 
Program

This six-month program is aimed 
at developing recent college 
graduates for banking careers. 

Pathways to 
Professional 
Excellence Program

This six-month program is 
aimed at employees identified 
with leadership potential.

COLLEGE INTERNS

29 TOTAL  
2,553

HOURS OF TRAINING

BANK ASSOCIATES

11 TOTAL  
1,877

HOURS OF TRAINING

PARTICIPANTS

23 TOTAL 
3,468

HOURS OF TRAINING

Bottom left: BOH’s 2019 Pathways to Professional Excellence cohort kicked off 
their six-month learning journey in July. From left: front row: Emily Araki,  
Kristin Yama, Tiffany Mitani and Arleen Torrijos. Second row: George Cochard,  
Taj’a Wong, Ester Sisson, Jessica Pacpaco, Cilla Arelliano and Charmaine 
Depaynos-Mayo. Third row: Darren Bullock, Lena Zheng, Matt Shishido,  
Kasi Young and Carol-Lynn Lester. Fourth row: Jose Lopez, Megan Nguyen 
and Serena Thomas. Back row: Jeff Dailly, Hayley Musashi, Manatu Tokelau, 
Kevin Sun and Demi Willis.

New Financial Benefits
As part of our commitment to making Bank of Hawaii a great  
place to work, we offer employees a diverse range of competitive 
benefits and services to meet their different needs and evolving 
lifestyle changes. In an effort to help them save more and  
strengthen their financial foundation, three new financial wellness 
benefits launched in January 2020.

•  Student Loan Assistance Program: Employees will receive  

$100 per month (up to a maximum of $10,000), toward their 
student loan repayment; 

•  EASE by Bank of Hawaii Grow Account: The bank will help 
employees save toward their rainy day funds by providing  
a one-time $50 bonus once employees save $500, and an 
additional one-time bonus of $100 once $1,000 is saved.

•  Mortgage Discount: Employees are eligible for up to a 1% 

reduction in the Employee Note Rate for new mortgage loans 
when either purchasing or refinancing a home to be used as their 
primary residence.

Profile: The Private Bank Clients

Wong Family

Rita Wong: William and I came to 
Hawaii in 1977 to finish up military 
service in the Air Force. A year after 
we arrived, we were able to buy an 
office space at the Aiea Medical 
Building for Bill’s dermatology practice. 
When we bought the space, it was 
only a shell. After having our loan 
application for renovations rejected at 
another bank, we decided to go across 
the street to Bank of Hawaii.

Dr. William Wong, Sr.: At that time, 
BOH had a branch in Aiea, and the 
branch manager offered us a second 
mortgage of $50,000 to improve our 
office. As the practice gradually grew 
over the years, we grew in our banking 
relationship. 

Now we have one realty company  
and two private medical practices 
(dermatology and ophthalmology)  
in our family, and we have found  
Bank of Hawaii very convenient and 
supportive of both business and 
personal banking. 

Dr. William Wong, Jr.: My first 
experience was with my BOH checking 
account as a teenager. When we 
moved back to Hawaii, my story is 
somewhat similar to my parents, with 
the bank providing funding to open the 
Vision Clinic based on the good 
relationship built up over the years. 

Starting a small business is always 
risky, and BOH helps us keep it 
running. Whenever we need 
equipment upgrades, BOH is always 
there to provide the next business 
loan. Especially when cash flow is tight 
or the economy isn’t doing so well, 
they will set up terms that will work for 
our business. It’s a good relationship. 
They have always been there when we 
needed assistance.

Five years ago we faced a critical 
decision whether to expand by 
opening a second practice location in 
town. Knowing BOH was willing to 
make funds available prompted us to 
move ahead with the purchase, 
remodel, and furnishing of our new 
Kakaako office at Nauru Tower. 

While expanding the practice, we 
were also in the process of building 
our new forever home; it was quite a 
stressful time. BOH’s construction 
department guided us through the 
process, and was flexible enough to 
extend the construction loan to help 
us cope with the inevitable delays and 
obstacles that arise with big projects 
in Hawaii. We now have a farm where 
the kids have space to explore nature, 
and learn the joys of caring for 
animals and plants.

Kerri Wong: We have three kids, and 
we opened bank accounts for them 
very early on so they would 
understand the value of money. 
Whenever they would receive 
monetary gifts over the years, I’ve had 
them divide it up: a part for spending, a 
part for donating (either to the church 
or a charity of their choice), and a part 
for putting away. And so they’ve been 
able to watch their accounts grow over 
the years and begin to learn about 
long-term savings and investments.

Rita: We are always learning about 
new services and opportunities via 
financial planning meetings hosted by 
BOH. Our current private bank advisor, 
Cori Weston, has been a great source 
of knowledge, advice and financial 
resources. 

Through the bank, I, as an active 
Realtor® and real estate investor, was 
able to acquire multiple Waikiki 

REALTOR® is a registered trademark of the National Association of REALTORS®

“BOH is solid. They were 
around when I was a kid 
and will be around for 
generations to come.”

—Dr. William Wong, Jr.

Dr. William Wong, Sr., owner of Hawaii 
Dermatology & Surgery, Inc. and his wife, 
REALTOR® Rita Wong, owner of Rita Wong 
Realty, Inc., Dr. William Wong, Jr., owner  
of Hawaii Vision Clinic, 2017 past president 
of Hawaii County Medical Association, and 
2018 past president of Hawaii Medical 
Association, with his wife, Kerri Wong,  
proud mom of their three loving kids. 

properties, including two apartment 
buildings. Years ago we used the bank 
to help us fund Punahou education for 
our kids through an equipment leasing 
program. Recently, we wanted to do 
the same for our grandchildren, and 
Cori helped us set up the 529 Plan 
with all the necessary vehicles and 
administrations. It’s very nice that at 
one bank we’re able to take care of all 
three generations.

William Wong, Jr.: BOH is solid. They 
were around when I was a kid and will 
be around for generations to come.

William Wong, Sr.: It’s the relationship 
factor based on mutual trust, working 
together over the years, achieving new 
goals. They know our needs, and have 
facilitated helping us. Bank of Hawaii is 
a real ‘ohana bank.

B A N K O F H AWA I I 2 0 1 9 A N N UA L R E P O R T     1 5

Profile: Branch Banking and Commercial Banking Client

Lyndsey Haraguchi-Nakayama

H O ‘ O P U L A P U L A   H A R A G U C H I   R I C E   M I L L   M U S E U M   &   T A R O   F A R M 
H A N A L E I   T A R O   &   J U I C E   C O .   L U N C H   W A G O N S

Lyndsey Haraguchi-Nakayama:   
Our farm is a six-generation working 
family farm that’s over 100 years old. 
We have been mainly growing taro for 
several generations, but we grow 
diversified crops.

Hanalei Taro & Juice Co. are our food 
trucks. They serve the value-added 
food portion of our family farm where 
we specialize in fresh taro dishes. We 
serve our Hanalei taro veggie burger, 
taro hummus, and kūlolo (a traditional 
Hawaiian dessert). Our menu provides 
a variety of items, including vegan and 
gluten- and dairy-free dishes, all the 
way to traditional Hawaiian food, like 
laulau and kalua pork. 

We also care for the Ho‘opulapula 
Haraguchi Rice Mill, a 501 c(3) 
nonprofit agrarian museum that was 
started by my parents in the early 
1980s. I am the educational 
administrator, and my parents, Rodney 
and Karol Haraguchi, oversee it along 
with the help of a community-led 
board of directors.

From our family’s viewpoint, we don’t 
think our life as farmers is interesting. 
However, my mother is a teacher and 
she realized that nowhere else in the 
state could children come and see 
agricultural artifacts that have been 
preserved from the 1800s and early 
1900s. She also saw the museum as 
an opportunity to preserve local oral 
history while informing visitors about 
current challenges. We educate  
about the local ecosystem, about 
endangered and invasive species,  
and instill the importance of farming 
because that’s needed for future 
generations to survive. 

In April 2018, the North Shore 
community, Koloa, and other areas  
of Kauai and Oahu were affected by 

historic flooding, and everybody is still 
rebuilding. 

On our farm not only did we need to 
salvage artifacts that were washed out 
of the museum, but five foundational 
pillars from the farmhouse and office 
were knocked out by the flood, so the 
floors are collapsing. Toward the end 
of 2019, we received permission to 
begin demolishing and start rebuilding. 
The museum is still closed to the 
public as we continue with taro field 
flood recovery and eco-farm education 
tours. It’s taking a lot longer than we’d 
like, and we continue to work daily on 
the farm and at the food trucks, but it’s 
probably going to take us at least two 
to three years to complete rebuilding. 

I look for trustworthiness, 
dependability and understanding in a 
banking relationship. After the floods, 
BOH was very empathetic; they 
listened to our situation, and they 
wanted to know how they could help. 

Brandon Sassone, the Princeville 
Branch manager, came to a Hanalei 
Business Co-Operative meeting where 
I told him that I would like to make 
more deposits using the mobile app. 
Brandon helped to extend the limit so  
I could deposit many work checks at 
one time online. That really helped.

It was heartwarming to see how the 
community pulled together after the 
flooding, and some reached out by 
donating online at HaraguchiRiceMill.org. 
Thanks to BOH SVP and Kauai Market 
Manager Sonia Topenio, a special 
account was set up to accept 
donations and acknowledge them  
with receipts for tax deductions.

Even when we face disasters, we have 
to be able to move forward. Working 
from my farm truck was the quickest 
way that I could get things back up and 

“Bank of Hawaii is definitely 
a bank with Hawaii people in 
mind. Whether it’s personal, 
or business or nonprofit, 
they stand for the local 
community. They understand 
the challenges. That makes 
all the difference.”

running on a day-to-day basis. Mobile 
banking is what I utilize the most, and  
I also use online banking for bill paying 
and payroll transfers. I have a wooden 
desk that fits over the steering wheel in 
my truck to hold my laptop, and I can 
pay invoices or make deposits within a 
few minutes.

We also worked to quickly reopen our 
Hanalei food truck because we wanted 
the community to have a place to get 
food, and we wanted our staff to have 
jobs. All of our electrical equipment in 
the food truck got washed in the flood. 
Chris Kashiwagi, our senior relationship 
banker at BOH, has always been very 
helpful with anything we need. She 
spearheaded my getting two new credit 
cards to purchase replacement 
equipment so we could reopen the food 
truck and our staff could stay employed. 

BOH is definitely a bank with Hawaii 
people in mind. Whether it’s personal, 
or business or nonprofit, they stand for 
the local community. They understand 
the challenges. That makes all the 
difference.

B A N K O F H AWA I I 2 0 1 9 A N N UA L  R E P O R T     1 7

Co-owner and fifth-generation  
farmer Lyndsey Haraguchi-Nakayama  
at her family’s 55-acre taro farm and 
historic rice mill in Hanalei, Kauai.

Profile: Branch Banking and Commercial Banking Clients

Jason and Juliana Sung

P A N C A K E S   &   W A F F L E S   B . L . D .

Jason Sung: We opened our 
Dillingham location in 2010. It looks 
brand new because we completed a 
renovation in November 2018 that 
added almost 1,000 sq. ft. We 
opened our Waimalu Plaza restaurant 
in 2014 with an SBA loan.

Juliana Sung: Our landlord at the  
City Square Shopping Center first 
introduced us to Bank of Hawaii. BOH 
helped us apply for the SBA loan for 
our Waimalu Plaza location, and they 
also wrote up our winning nomination 
for SBA’s Young Entrepreneur of the 
Year in Honolulu County. By that time, 
Reid Hinaga was our banker, and he 
attended the SBA awards luncheon 
with us along with our parents. My 
mom remembered Reid from when  
he was an assistant manager at the 
Hawaii Kai Safeway Branch years ago. 

Jason: We had always been open 
until 2 p.m., but when we opened in 
Waimalu, we decided to extend the 
hours to 9 p.m. It was a hit; everyone 
loved it. People wanted to come for 
dinner, and they loved that we were 
using real plates and real utensils. 

We had a vision after the second 
location was a hit. And because we 
had two different locations that 
operated differently, we wanted to 
make it look like an actual chain.  
That’s why we chose to renovate this 
location, expand the kitchen, put in a 
dishwasher, and extend the hours. Ever 
since, our business here has grown.

Juli: Everyone appreciates that it’s 
really clean, bright and modern, and 
where people can feel comfortable 
bringing the whole family. We also 
wanted to expand the kitchen so that 
we could take advantage of more 
catering opportunities. In the end, it 

“This is just the beginning; we are still young and plan  
to keep going. We hope Bank of Hawaii will keep going 
with us and help us grow even more.”

—Jason Sung

Co-owners Juliana and Jason Sung in their recently renovated  
Dillingham restaurant location. 

worked out well for our customers 
and for our business. 

business. He can relate to us;  
we can relate to him.

Jason: BOH gave us a commercial 
loan for the renovation. We do all  
of our banking with BOH including  
our personal banking, commercial 
lending, credit card processing, and 
our home equity line. It’s easy—I can 
just text Reid and give him the details. 
Everything can be done over the 
phone or via email. 

Reid and I are from the same 
generation; we’re both around the 
same age; we both have kids, so 
there’s a lot we can relate to. He’s my 
friend. He knows our needs, and I feel 
comfortable talking with him. 

Juli: We look for convenience in a 
banking relationship, and someone 
we can trust. Because we know BOH 
does their due diligence, that gives  
us another level of confidence in our 
abilities. They have faith in us, and  
we have faith in them.

Jason: We now have an ongoing 
relationship with the bank through 
Reid, who knows the challenges that 
we face as a local, family-owned 

Juli: We have some employees  
who have been with us for a long 
time, and we appreciate them. They 
are a huge part of the company’s 
success. Each time we expanded with 
help from BOH, we increased our 
number of employees. It’s about 
creating jobs in the community as 
well as serving our customers. 

Jason: I don’t want to expand too fast; 
slow growth is the best growth. But 
eventually I do want a third location. 
People say that having two is really 
hard, but that the third and fourth 
may come easier because you already 
have the blueprint of what you are 
doing. You just need to find the right 
location and people. 

I can’t wait to do more business with 
BOH! Thanks for having faith and 
confidence in our business, and with 
me and Juli. This is just the beginning; 
we are still young and plan to keep 
going. We hope they keep going with 
us and help us grow even more. 

B A N K O F H AWA I I 2 0 1 9 A N N UA L  R E P O R T     1 9

Profile: Commercial Banking Client

Mark Fukunaga

S E R V C O   P A C I F I C   I N C .

Mark Fukunaga:  Servco has been 
defined by the idea of service from the 
start, and that idea has allowed us to 
reach 100 years in business. Putting 
customers first is still at the heart of 
how we operate today, even when it 
might be disruptive to our business. 
We do things because it’s the right 
thing to do.

Any business that’s been around for 
100 years has reinvented itself five or 
six times over that period, and 
certainly that has been the case with 
us. Implicit in every reinvention is the 
ability to take risks, embrace new ideas 
and new ways of doing business, and 
to walk away from some more 
traditional ways of doing things. You 
ultimately have to follow where the 
customer wants to go. 

That’s always been a part of Servco, 
but perhaps what’s changed is the 
pace. We’re dealing with many 
disruptive digital forces that are 
changing the way we engage and 
serve our customers. At the same 
time, we’re also planning for how we 
adapt to new ownership models, like 
car sharing and ride sharing, and new 
technologies like autonomous vehicles 
and electric drivetrains that use 
batteries, fuel cells and plug-in hybrid 
systems.

Our first foray into this disruption was 
through the launch of our new car 
share service called Hui. Hui Car Share 
is a collaboration between Toyota 
Connected and Servco, and is Toyota’s 
first global car sharing initiative. We 
launched it in 2018, and we now have 
100 vehicles in our Hui fleet at 45 
stations across Oahu. We’re delighted 
that BOH is a mobility partner with Hui 
and has a station at its corporate 
offices in Honolulu. 

What I think is innovative about BOH 
is they are thinking about using Hui for 
their employees who want to work 
downtown without bringing their car. 
This is a way for them to commute via 
mass transit options (like bus and 
eventually rail transit), car pool, or 
bike. Then, once in the city, if they 
need to use a car to run errands or 
meet a client they have easy access 
with Hui. 

Servco has been a BOH client at least 
since 1972. They have been a key 
partner for us over the years, 
supporting our borrowing needs for 
general corporate and real estate 
projects. BOH has also been very 
helpful in enabling our customers to 
buy and lease vehicles. They provide 
funding for all of our Lexus inventory in 
Hawaii. And BOH is the only local bank 
that we use for leasing our cars, which 
is an important part of our business. 

To me, a partner is someone who 
takes the time to understand our 
business and therefore understands 
what we need. BOH has been terrific 
over the years at understanding 
Servco’s business, and anticipating 
what we’re going to need because they 
know us well. 

I also think a partner is there when 
times get tough. Servco has been lucky 
to avoid having financial difficulties, 
but when everyone faced challenges in 
2008, Bankoh was fully there standing 
beside everyone. We know they’ll be 
there if we hit a bump in the road.  

In the last five years or so, I’ve also 
appreciated the opportunity to do 
some exchange of thoughts as we both 
look forward into the future as both 
automotive and banking industries are 
facing significant changes in our 
business models.  

“Bank of Hawaii is a  
long-term partner who is 
supportive, who we can 
rely on. And, like us, 
values innovation 
through new initiatives 
that are good for our 
business and, most 
importantly, our 
community as a whole.” 

Mark Fukunaga, Chairman & CEO  
of Servco Pacific Inc. 

We have common challenges and  
we think about the future similarly. We 
both try to serve customers who range 
in ages from their teens to their 70s, 
and across that age gap there are all 
kinds of differences in how customers 
want to be treated. We have some 
very interesting conversations with 
Bankoh leadership, including Peter Ho, 
around those ideas, and I enjoy having 
meaningful discussions with  
a trusted business partner like BOH. 

Bank of Hawaii is a long-term  
partner who is supportive, who  
we can rely on. And, like us, values 
innovation through new initiatives that 
are good for our business and, most 
importantly, our community  
as a whole. 

B A N K O F H AWA I I 2 0 1 9 A N N UA L  R E P O R T     2 1

2019 Financial Report

C O N S O L I D A T E D   S T A T E M E N T S   O F   I N C O M E

Bank of Hawaii Corporation and Subsidiaries (dollars in thousands, except per share amounts)

FOR THE YEAR ENDED DECEMBER 31 

2019 

2018

Interest Income 

Interest and Fees on Loans and Leases 
Income on Investment Securities 

       Available-for-Sale 
       Held-to-Maturity 
     Deposits 
    Funds Sold  
    Other 
Total Interest Income 

Interest Expense 
     Deposits 
     Securities Sold Under Agreements to Repurchase 
     Funds Purchased 

Short-Term Borrowings 

     Other Debt 
Total Interest Expense 
Net Interest Income 
Provision for Credit Losses 
Net Interest Income After Provision for Credit Losses 

Noninterest Income 
     Trust and Asset Management 
     Mortgage Banking 
     Service Charges on Deposit Accounts 
     Fees, Exchange, and Other Service Charges 
Investment Securities Gains (Losses), Net 

   Annuity and Insurance 
     Bank-Owned Life Insurance 
     Other 
Total Noninterest Income 

Noninterest Expense 
     Salaries and Benefits 
     Net Occupancy 
     Net Equipment 
     Data Processing 
     Professional Fees 
     FDIC Insurance 
     Other  
Total Noninterest Expense 
Income Before Provision for Income Taxes 
Provision for Income Taxes 
Net Income 

Basic Earnings Per Share 
Diluted Earnings Per Share 
Dividends Declared Per Share 
Basic Weighted Average Shares 
Diluted Weighted Average Shares 

$ 

 439,012 

$ 

 410,597 

62,174 
 81,616 
 41  
 3,553 
  1,001  
 587,397 

 68,374  
 17,522   
 840   
 38 
 2,908 
 89,682  
 497,715  
 16,000 
481,715  

 44,233  
 13,686 
 30,074  
 57,893  
 (3,986)  
 6,934  
 7,015  
 27,489 
  183,338  

 216,106   
 33,800  
 29,295 
 18,757  
 10,071 
 5,192  
 66,006   
 379,227  
  285,826  
 59,913  
 225,913  

 5.59 
 5.56 
 2.59  
 40,384,328  
 40,649,570  

$ 

$ 
$ 
$ 

 50,152
 84,310  
 34 
 3,723
 1,357 
 550,173

 41,143 
18,519 
 609 
 145
 3,405
 63,821 
 486,352 
 13,425
 472,927 

 43,877
 8,437 
 28,811 
 57,482
 (3,938)
  5,822
 7,199  
 21,233 
 168,923 

 213,208 
 34,742
 23,852
 17,846 
 9,992
 7,732
 64,252 
  371,624
 270,226 
 50,624 
 219,602

 5.26 
 5.23
 2.34 
 41,714,770
 41,999,399

$ 

$ 
$ 
$ 

Refer to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019
for the Consolidated Financial Statements, including Report of Independent Registered Public Accounting Firm, thereon.

 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
  
 
    
 
 
 
  
 
 
  
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
    
B A N K O F H AWA I I 2 0 1 9 A N N UA L  R E P O R T     2 3

C O N S O L I D A T E D   S T A T E M E N T S   O F   C O N D I T I O N

Bank of Hawaii Corporation and Subsidiaries (dollars in thousands)

AS OF DECEMBER 31 

2019 

2018

Assets 
Interest-Bearing Deposits in Other Banks 
Funds Sold 
Investment Securities
       Available-for-Sale 
     Held-to-Maturity (Fair Value of $3,062,882 and $3,413,994) 
Loans Held for Sale  
Loans and Leases 
  Allowance for Loan and Lease Losses 

  Net Loans and Leases 

Total Earning Assets 
Cash and Due From Banks 
Premises and Equipment, Net 
Operating Lease Right-of-Use Assets 
Accrued Interest Receivable 
Foreclosed Real Estate 
Mortgage Servicing Rights 
Goodwill 
Bank-Owned Life Insurance 
Other Assets 

Total Assets 

Liabilities 
Deposits 
     Noninterest-Bearing Demand 
Interest-Bearing Demand 

     Savings 
     Time 
Total Deposits 
Funds Purchased 
Securities Sold Under Agreements to Repurchase 
Other Debt 
Operating Lease Liabilities 
Retirement Benefits Payable 
Accrued Interest Payable 
Taxes Payable and Deferred Taxes 
Other Liabilities 

Total Liabilities  

Shareholders' Equity 
Common Stock ($.01 par value; authorized 500,000,000 shares; 

issued / outstanding: December 31, 2019 - 58,166,910 / 40,039,695 
and December 31, 2018 - 58,063,689 / 41,499,898) 

Capital Surplus 
Accumulated Other Comprehensive Loss 
Retained Earnings 
Treasury Stock, at Cost (Shares: December 31, 2019 - 18,127,215 and 
  December 31, 2018 - 16,563,791) 
Total Shareholders' Equity 
Total Liabilities and Shareholders' Equity 

$ 

 4,979 
254,574 

$ 

  3,028 
198,860

 2,619,003 
 3,042,294  
 39,062 
  10,990,892  
 (110,027) 
 10,880,865 
 16,840,777  
 299,105  
 188,388   
 100,838   
 46,476 
 2,737 
 25,022  
 31,517  
 287,962 
272,674  
  18,095,496 

$ 

$ 

  4,489,525 
  3,127,205  
               6,365,321  
          1,802,431  
 15,784,482  
  –  
  604,306 
   85,565  
   108,210   
  44,504  
 8,040 
  16,085  
  157,472 

            16,808,664   

  579 
  582,566  
  (31,112)  
             1,761,415  

 (1,026,616) 
 1,286,832 
 18,095,496 

$ 

 2,007,942  
 3,482,092 
 10,987
 10,448,774 
  (106,693)
 10,342,081
 16,044,990 
 324,081 
 151,837 
 – 
 51,230
  1,356
 24,310 
 31,517 
 283,771
  230,882
   17,143,974 

  4,739,596 
  3,002,925 
 5,539,199
  1,745,522
15,027,242
 199  
 504,296 
 135,643 
 –  
 40,494
 8,253
 19,736 
 139,911
 15,875,774 

$ 

$ 

  577
 571,704 
  (51,043)
  1,641,314

  (894,352) 
  1,268,200
  17,143,974

$ 

Refer to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019
for the Consolidated Financial Statements, including Report of Independent Registered Public Accounting Firm, thereon.

 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
    
 
 
 
 
 
 
 
 
 
  
 
 
  
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
    
 
 
 
 
 
 
 
 
 
Relative Stock Prices

R E L A T I V E   S T O C K   P R I C E   P E R F O R M A N C E

(For the Year Ended December 31, 2019)

BOH

S&P Banks

KBW Regional Bank Index

S&P 500

$145

$140

$135

$130

$125

$120

$115

$110

$105

$100

$95

MARCH 31

JUNE 30

SEPTEMBER 30

U N B R O K E N   H I S T O R Y   O F   D I V I D E N D S 

(Bank of Hawaii Corporation)

Recession

Recession

Financial Crises

$2.75

$2.50

$2.25

$2.00

$1.75

$1.50

$1.25

$1.00

$0.75

$0.50

$0.25

$0.00

1986

1992

1998

2004

2010

2016

Historical dividends adjusted for stock splits

Bank of Hawaii Locations/Economic Information

B A N K O F H AWA I I 2 0 1 9 A N N UA L  R E P O R T     2 5

F A C T S :   H A W A I I   A N D   W E S T   P A C I F I C   R E G I O N

Hawaii
Hawaii business establishments in 2018:  98.2% have fewer than  
100 employees, 95.2% have fewer than 50 employees, and 58.1% have 
fewer than five employees.1

Hawaii gross domestic product in 2018: $92 billion (in current dollars)2
21%  Real estate, rental and leasing   
19.5%  Government (federal civilian & military, and state and local)    
8.7%  Accommodation and food services   
6.7%  Health care and social assistance 
6.6%  Retail trade 
5.7%  Construction   
5.6%  Transportation and warehousing   
4.1%  Professional, scientific and technical services   
3.1%  Finance and insurance  

Tourism’s direct and indirect impact on Hawaii gross domestic product  
(in current dollars) in 2017: 16.9%3

State of Hawaii resident population as of July 1, 2017:  1,415,8724 

Guam
- U.S. Territory 
- Capital: Hagatna 
- Resident population: July 2018 estimate 167,7725 
- Main industries: U.S. military and tourism

Commonwealth of the Northern Mariana Islands
- Commonwealth in political union with the U.S. 
- Capital: Saipan 
- Resident population: July 2018 estimate 51,9945 
- Main industries: tourism, banking, construction, fishing, handicrafts

Palau
- Constitutional government in free association with the U.S. 
- Capital: Melekeok 
- Resident population: July 2018 estimate 21,5165 
- Main industries: tourism, fishing, subsistence agriculture

Bank of Hawaii Branches/ATMs
(As of December 31, 2019)

Branches  
& In-Store 
Branches 

State of Hawaii 

Island of Oahu  
Island of Hawaii  
Island of Maui  
Island of Kauai  
Island of Lanai  
Island of Molokai  

West Pacific  

Guam  
CNMI/Saipan  
Palau  

64 

36  
11 
10  
5  
1  
1  

4  

2  
1  
1  

ATMs

344

242 
44 
33 
23 
1 
1

38

30 
5 
3

Total  

68  

382

1  Hawaii Department of Labor & Industrial Relations, 2018 Employment and Payrolls in Hawaii: https://www.hiwi.org/admin/gsipub/

htmlarea/uploads/LFR_QCEW_ES18FIRM.pdf  

2 Hawaii DBEDT State of Hawaii Data Book 2018, Table 13.05, http://files.hawaii.gov/dbedt/economic/databook/ 

2018-individual/13/130518.xls from the U.S. North American Industry Classification

3 Hawaii DBEDT State of Hawaii Data Book 2018, Tables 7.34,http://files.hawaii.gov/dbedt/economic/databook/ 

2018-individual/07/073418.xls

4 Hawaii DBEDT, Hawaii State Data Center, Latest Population Estimates Data, 2019 State Population Estimates http://census.hawaii.gov/

whats-new-releases/2019-state-population-estimates/

5 Central Intelligence Agency (CIA), The World Factbook: https://www.cia.gov/library/publications/the-world-factbook/

 
 
 
 
 
 
Managing Committee

B A N K   O F   H A W A I I   C O R P O R A T I O N / B A N K   O F   H A W A I I   (as of Dec. 31, 2019)

From left:

Mary E. Sellers 
Vice Chair and Chief Risk Officer

Kent T. Lucien 
Vice Chair and Chief Strategy Officer

Peter S. Ho 
Chairman, President  
and Chief Executive Officer

Mark A. Rossi 
Vice Chair, Chief Administrative 
Officer, General Counsel  
and Corporate Secretary

From left:

Jill F.S. Higa 
Senior Executive Vice President, 
Branch Banking

Matthew Emerson 
Senior Executive Vice President 
and Director of E-Commerce

James C. Polk 
Vice Chair  
Retail Lending & Deposit Product Group

Wayne Y. Hamano 
Vice Chair  
and Chief Commercial Officer

B A N K O F H AWA I I 2 0 1 9 A N N UA L R E P O R T     2 7

From left:

David Oyadomari 
Senior Executive Vice President, 
Digital Channels Division

Craig A. Norris 
Senior Executive Vice President 
and Chief Credit Officer

Susan L. Ing 
Senior Executive Vice President  
and Chief Marketing Officer

Tony Mizuno 
Senior Executive Vice President, 
Commercial Banking Group

Dana S. Takushi 
Senior Executive Vice President,  
The Private Bank

From left:

Ed Hudson 
Senior Executive Vice President 
and Chief People Officer

Sheh Bertram 
Senior Executive Vice President 
and Chief Information Officer

Alton T. Kuioka 
Vice Chair  
Client Relations

Sharon M. Crofts 
Vice Chair  
Client Solutions Group

Dean Y. Shigemura 
Vice Chair and  
Chief Financial Officer

Board of Directors

B A N K   O F   H A W A I I   C O R P O R A T I O N / B A N K   O F   H A W A I I  (as of Dec. 31, 2019)

S. Haunani Apoliona 
Former Trustee
Office of Hawaiian Affairs

Mary G.F. Bitterman 
President and Director
The Bernard Osher Foundation

Mark A. Burak 
Retired Executive Vice President
Bank of America

John C. Erickson 
Former Vice Chairman
Union Bank

Joshua D. Feldman 
President and CEO
Tori Richard, Ltd.

Peter S. Ho 
Chairman, President and  
Chief Executive Officer 
Bank of Hawaii Corporation  
and Bank of Hawaii

Michelle E. Hulst 
Group Vice President, Marketing  
and Strategic Partnerships 
Oracle Data Cloud

Robert A. Huret 
Founding Partner Emeritus
FTV Capital

Kent T. Lucien 
Vice Chair and Chief Strategy Officer
Bank of Hawaii Corporation  
and Bank of Hawaii

Barbara J. Tanabe 
Owner
Ho‘akea Communications, LLC 

Raymond P. Vara 
President and  
Chief Executive Officer 
Hawai‘i Pacific Health

Robert W. Wo 
Owner and Director
C.S. Wo & Sons, Ltd.

Alicia E. Moy 
President and  
Chief Executive Officer
Hawai‘i Gas

Victor K. Nichols 
Former Chairman
Harland Clarke Holdings

Below: Board of Directors  
(seated, from left): Kent T. Lucien,  
Mary G.F. Bitterman, Peter S. Ho,  
Barbara J. Tanabe and Victor K. Nichols. 
Standing from left: Alicia E. Moy,  
John C. Erickson, Raymond P. Vara,  
Mark A. Burak, Robert W. Wo,  
Joshua D. Feldman, S. Haunani Apoliona, 
Michelle E. Hulst and Robert A. Huret.

S H A R E H O L D E R   I N F O R M A T I O N

Forward Looking Statements
This report contains forward-looking statements concerning, among other 
things, the economic and business environment in our service area and 
elsewhere, credit quality and other financial and business matters in future 
periods. Our forward-looking statements are based on numerous assumptions, 
any of which could prove to be inaccurate and actual results may differ materially 
from those projected because of a variety of risks and uncertainties, including, 
but not limited to: 1) general economic conditions either nationally, 
internationally or locally may be different than expected, and particularly, any 
event that negatively impacts the tourism industry in Hawaii; 2) unanticipated 
changes in the securities markets, public debt markets, and other capital markets 
in the U.S. and internationally; 3) competitive pressures in the markets for 
financial services and products; 4) the impact of legislative and regulatory 
initiatives, particularly the Dodd-Frank Wall Street Reform and Consumer 
Protection Act of 2010 (the “Dodd-Frank Act”); 5) changes in fiscal and 
monetary policies of the markets in which we operate; 6) the increased cost of 
maintaining or the Company’s ability to maintain adequate liquidity and capital, 
based on the requirements adopted by the Basel Committee on Banking 
Supervision and U.S. regulators; 7) actual or alleged conduct which could harm 
our reputation; 8) changes in accounting standards; 9) changes in tax laws or 
regulations or the interpretation of such laws and regulations; 10) changes in our 
credit quality or risk profile that may increase or decrease the required level of 
our reserve for credit losses; 11) changes in market interest rates that may affect 
credit markets and our ability to maintain our net interest margin; 12) the impact 
of litigation and regulatory investigations of the Company, including costs, 
expenses, settlements, and judgments; 13) any failure in or breach of our 
operational systems, information systems or infrastructure, or those of our 
merchants, third party vendors and other service providers; 14) any interruption 
or breach of security of our information systems resulting in failures or 
disruptions in customer account management, general ledger processing, and 
loan or deposit systems; 15) changes to the amount and timing of proposed 
common stock repurchases; and 16) natural disasters, public unrest or adverse 
weather, public health, and other conditions impacting us and our customers’ 
operations. Given these risks and uncertainties, investors should not place undue 
reliance on forward-looking statements as a prediction of actual results. For a 
detailed discussion of these and other risks and uncertainties that could cause 
actual results and events to differ materially from such forward-looking 
statements please refer to the risk factors discussed in our Annual Report on 
Form 10-K for the fiscal year ended December 31, 2019, and any subsequently 
filed reports with the U.S. Securities and Exchange Commission. Words such as 
“believes,” “anticipates,” “expects,” “intends,” “targeted,” and similar expressions 
are intended to identify forward-looking statements, but are not the exclusive 
means of identifying such statements. We undertake no obligation to update 
forward-looking statements to reflect later events or circumstances.

B A N K O F H AWA I I 2 0 1 9 A N N UA L  R E P O R T     2 9

Corporate Headquarters
Bank of Hawaii Corporation  
130 Merchant Street, Honolulu, Hawaii 96813

Annual Meeting 
The annual meeting of shareholders will be held on 
Friday, April 24, 2020, at 8:30am at the  
Bank of Hawaii Main Office, 5th Floor,  
111 South King Street, Honolulu, Hawaii.

Transfer Agent and Registrar
Computershare Investor Services, LLC 
250 Royall Street, Canton, MA  02021

Common Stock Listing NYSE: BOH
The common stock of Bank of Hawaii Corporation is 
traded on the New York Stock Exchange under the ticker 
symbol BOH and is quoted daily in leading financial 
publications as “Bank of Hawaii.”

Dividend Reinvestment & Stock Purchase Plan (DRP) 
Bank of Hawaii Corporation’s DRP allows existing 
shareholders to purchase common shares of the 
company’s stock by either reinvesting their stock 
dividends or by optional cash payments.
–  Individuals must possess at least one share of  
  the company’s stock to participate in the DRP.
–  Shares are purchased on the 10th business day  
  of each month based on the average of five  
  trading days ending on the day of purchase.
–   Minimum payment for purchase of shares is  
 $25 and the maximum is $5,000 per calendar  
 quarter.
– There are no fees for purchasing shares or for  
  the safekeeping of stock certificates. Fees are  
  assessed on the sale of shares in the DRP.

Detailed information about Bank of Hawaii  
Corporation’s DRP can be found online at  
www.boh.com or by calling Computershare Investor 
Services LLC at 1-888-660-5443.

Inquiries 
Shareholders with questions about stock transfer 
services, share holdings or dividend reinvestment may 
contact Computershare Investor Services LLC at 
1-888-660-5443 between 7:00am and 5:00pm  
Central Standard Time.

Investors and Analysts Seeking  
Financial Information
Cindy Wyrick  
Executive Vice President 
Investor Relations 
Phone: 1-808-694-8430

For General Inquiries
Phone: 1-888-643-3888 
www.boh.com 

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 website, www.boh.com.

 
 
 
 
 
 
 
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