Bank of Hawaii
Annual Report 2021

Plain-text annual report

2021 ANNUAL REPORT O U R J O U R N E Y A H E A D C O N T E N T S C h a i r m a n ’ s M e s s a g e | p g 1 2 0 2 1 F i n a n c i a l S u m m a r y | p g 5 Y e a r i n R e v i e w | p g 6 O u r C o m m u n i t y | p g 1 1 O u r E m p l o y e e s | p g 1 4 C l i e n t P r o f i l e s | p g 1 6 2 0 2 1 F i n a n c i a l R e p o r t s | p g 2 2 R e l a t i v e S t o c k P r i c e | p g 2 4 O u r J o u r n e y A h e a d | p g 2 5 E x e c u t i v e a n d O p e r a t i n g C o m m i t t e e s | p g 2 6 B o a r d o f D i r e c t o r s | p g 2 8 S h a r e h o l d e r I n f o r m a t i o n | p g 2 9 O u r J o u r n ey A h e a d Bank of Hawaii has had an unwavering support for its employees, customers and community for the past 124 years. We look ahead with a sense of renewed purpose in our journey to help everyone in our community move toward a brighter future in our island home. © 2021, Bank of Hawaii Corporation. Bank of Hawaii®, Bankoh®, and the Bank of Hawaii logo are registered trademarks of Bank of Hawaii. SimpliFi Mortgage is a trademark of Bank of Hawaii. 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. C H A I R M A N ’ S M E S S A G E Aloha Fellow Shareholders, While 2021 became the second consecutive year of dealing with the COVID-19 pandemic, improvements in our understanding of the virus and truly amazing enhancements in prevention and treatment give us pause to believe that we are moving into a new phase. We believe we are transitioning from a posture of responding to the vagaries of a novel coronavirus to one of living within a more known environment and managing forward as practically as feasible. It is clear that the pandemic of the past two years has accelerated meaningful shifts. The rate of change over the course of history in the world has never been linear. There have been decades in which meaningful change in the world has been nominal to imperceptible. Alternatively, throughout history there have been months in which profound change has occurred, dramatically changing the world we live in forever. Our view is that the events of the past few years resemble more the latter than the former. Specifically, we know the pandemic has created significant changes in the workforce and in how work gets done. We believe the pandemic has accelerated consumer behavior around digital adoption and product delivery. And we also believe the pandemic has illuminated global challenges around social harmony, socioeconomic outcomes, supply chain fragility and monetary challenges. In short, the world is getting less predictable, not more, and is likely to continue to do so. Together these elements combine to make for a different, more competitive banking environment. On balance, we see great opportunities, and the investments made during the past several years by Bank of Hawaii in people, technology and resiliency position us extremely well for the future. 1 Bank of Hawaii 2021 Annual Report C H A I R M A N ’ S M E S S A G E “ We remain steadfast in building shareholder value as we continue making progress on our strategic initiatives and staying true to disciplined expense management.” Workers and Workplaces are Evolving The pandemic has brought numerous factors into play around the workforce. At the most basic level, once-in-a-century existential events like the pandemic have driven many people to be more introspective in their assessment of what they do for a living and who they work for. We have long strived to make Bank of Hawaii not just a place to earn a living but, rather, a place to earn a living and make a positive difference in our community. We believe this has helped us to maintain staffing levels throughout the pandemic. We also recognize that the extraordinary pace of change requires adding expertise in the areas of marketing, technology and data analytics. The opportunity to work for an organization committed not only to financial gain, but also to the broader good and well-being of our core Hawaii and West Pacific communities creates a unique job experience. We believe this differentiation has helped us retain critical talent as well as to recruit nationally and locally for even more talent. As we evolve back from a work-from- home pandemic environment to a more flexible work environment, we believe there’s an opportunity to create a better outcome. We believe offering increased flexibility for our workforce will create a better work experience for our employees and heightened engagement and productivity for the company. Digital Adoption Has Accelerated Much has been made of the pandemic- induced shift by consumers to more digital ways of doing things, whether it is going to the movies, shopping or “seeing” a doctor. The financial services industry has been a meaningful participant in this shift. Fortunately, this shift comes as a welcome sight to Bank of Hawaii. We have been investing in digital capabilities for several years now. After trending digital for a number of years, we saw a dramatic turn toward digital interaction with our customers early in the pandemic. Indications are that these shifts are not likely to reverse themselves in the future. Today we enable approximately 20,000 Zelle transactions per week, up from nil a few years ago. More than half of our consumer deposits now come to us virtually through either our easy-deposit ATM network or through our highly rated mobile app. Online deposit openings and loan applications make up an increasingly meaningful share of overall activity. Our SimpliFi online mortgage platform is now in its fourth year and doing well. Our customers’ shift to digital preferences has enabled us to upskill our in-person branch staff to handle more value added, consultative engagements with our customers. A More Volatile Environment I mentioned earlier that we believe we are operating in more volatile times. Bank of Hawaii, for many years now, has consistently managed its business conservatively and with a keen focus on risk management. Preparation for the unknown is a time-honored value at Bank of Hawaii and one that we exercise with urgency in both good times and bad. Perhaps it’s the result of being part of an island culture where self-sufficiency is an obvious and critical need. We manage risk in three ways. First, we operate in communities we know and understand—97% of Bank of Hawaii’s loan portfolio is in our core Hawaii and West Pacific markets. We stress risk quality over growth, for growth’s sake. Secondly, we underwrite risk conservatively. In the investment realm, this means investing our assets in the highest quality securities at reasonable market durations. In our loan portfolio, this means gearing our underwriting criteria at sensible levels. Finally, we believe in managing balance sheet capacity prudently, which results in abundant liquidity, capital and capacity levels. Confidence As we step out of 2021 and now move into the New Year, we are excited for what’s ahead. In these ever-competitive times, we believe great opportunities exist for financial institutions able to deliver truly unique and exceptional experiences to customers. We remain committed to further building the experiences we provide our customers to world-class levels while delivering the familiarity and in-person service levels that only a hometown provider can. Our Financial Strength We remain steadfast in building shareholder value as we continue making progress on our strategic initiatives and staying true to disciplined expense management. We finished the year with strong financial performance despite the impacts of the pandemic. Core loans grew 6.2% and deposits grew 11.8%, and we remain well- capitalized with strong asset quality and liquidity. We also ended the year with record- breaking earnings. Diluted earnings per common share were $6.25 for the full year of 2021, compared to $3.86 in 2020; and net income was $253.4 million, up 64.7% compared to 2020. We announced a public offering of $180 million in preferred stock, achieving some of the best pricing in the marketplace for 2021. Additionally, Bank of Hawaii continues to deliver its unbroken history of shareholder dividends. In the third quarter of 2021, our Board of Directors increased the quarterly cash dividend to $0.70 from $0.67 per share on outstanding common shares. Our consistent performance is thanks to our 2,100 hard-working employees and our dedicated customers, who helped Bank of Hawaii earn local and national recognition. Based on our strong financial profile, leading market position in Hawaii, and our conservative credit risk management, we are proud to have our Long-Term Deposits rated Aa3 and our Baseline Credit Assessment rated a2 by Moody’s Investors Service, as of Dec. 20, 2021. We’re also grateful for the trust our customers show in depositing their savings with us in expanding proportions. The Federal Deposit Insurance Corporation confirmed that Bank of Hawaii had the largest share of FDIC-insured deposits of any financial institution in Hawaii, along with the largest market share gain during 2021. This trust is recognized by the readers of Honolulu Star-Advertiser, Hawaii Tribune-Herald, West Hawaii Today, and Hawaii Home + Remodeling magazine, who selected BOH as “Hawaii’s Best Bank” in 2021. Hawaii’s Economic Recovery Resumes With one of the best vaccination rates in the country—71% by December 2021— Hawaii’s economy is moving forward, and greater steps are expected. In 2021, while international travel restrictions limited visitors from Asia, we saw the resumption of an upward trend in domestic visitors thanks to Hawaii’s Safe Travels program, which began in October 2020. According to the Department of Business, Economic Development & Tourism (DBEDT), as of December 2021, a total of 6,777,498 visitors arrived by air to the state, compared to 2,708,258 the same time in 2020, and visitor spending was $13 billion. DBEDT is forecasting an estimated increase of 29.5% in visitor arrivals and an increase of 24.6% in visitor spending in 2022 over the previous year. The return of visitors and the reopening of businesses brought improvement to Hawaii’s unemployment rate, which was 5.7 in December 2021, compared to 10.3 at the end of 2020. Home and condo prices in Hawaii continue to rise. In 2021, the median price of single-family homes increased 19.3% to $990,000 on Oahu, 25.2% to $995,000 on Maui, 35.8% to $1,100,000 on Kauai, and 17.1% to $480,000 on Hawaii Island. The sales of single family homes statewide increased 19.3% over 2020 to 9,892. The median price of condos increased by 9.2% to $475,000 on Oahu, 12.6% to $650,000 on Maui, 10.3% to $612,000 on Kauai, and 21.5% to $480,000 on Hawaii Island. The sales of condos statewide increased 58.5% over 2020 to 11,345. As a unique company in a unique market at the crossroads of the Pacific, we are encouraged by the progress already made in our state and look forward to continuing on this upward trend. free of charge. Employees shared the meals with family and friends, and also donated them to those in need for broader community reach. On Oahu, our kitchen staff distributed 418,364 meals. As a result of this program, we donated nearly 12,900 pounds of food to the local nonprofit Aloha Harvest. And on the neighbor islands and in the West Pacific region, we supported 113 local restaurants that prepared an additional 116,424 meals for our employees. Investing in Our Employees’ Success As we wrapped up 2021, Bank of Hawaii made the decision to further assist our employees financially by providing a 5% salary increase—2.5% annual merit increase and a special, one-time 2.5% inflation adjustment—for the majority of our employees to help offset the impact of the rising costs of the economy. We also continue to offer opportunities for development, including our: • Bank of Hawaii College Assistance Program (CAP), which celebrated its fifth anniversary in 2021. So far, we’ve paid for college courses for 151 employees resulting in eight graduates to date and counting. • Summer internship program, which was re-imagined as a virtual one, and welcomed 22 students from local, national and international colleges and universities. • Bank of Hawaii Foundation Scholarship, which celebrated 26 scholars, who are the children or grandchildren of our employees. This year’s scholars received a combined $91,000. Administered by Hawai‘i Community Foundation, our BOH Foundation has provided $791,000 in financial support of 226 college scholarships since 2014. A phenomenal success, our Bankoh Meals-To-Go program, which started in May 2020, concluded on June 30, 2021. It kept our kitchen staff working throughout the pandemic, supported small businesses, and provided family- style meals to employees once a week, Fostering a Diverse, Equitable and Inclusive Workplace We continue to seek out ways to support our employees and offer programs and opportunities that foster meaningful dialogue and bring people together. Our efforts in 2021 were robust and, in part, included: • Co-hosting A Conversation on Race in Hawai‘i, a two-part virtual panel discussion featuring community leaders and bank employees; • Sponsoring the annual Honolulu Pride Parade and Festival and Honolulu Pride Month while supporting initiatives of the Hawai‘i LGBT Legacy Foundation; • Volunteering with Habitat for Humanity for its Veterans Build project, and donating/distributing gift bags at the U.S. VETS center during the holiday season; • Hosting “Women Inspired” discussions on “Leadership: Career Success Tips” and “How an Entrepreneurial Spirit Can Help Advance Your Career;” and • Honoring Juneteenth by giving all employees a floating holiday. Unwavering Commitment to the Community Our commitment to our communities is integral to who we are as a company. Along with our Bank of Hawaii Foundation, we contributed nearly $2.2 million to the community. This includes the generous support of our teammates, who personally donated nearly 560,000 to our annual employee giving campaign, 3 Bank of Hawaii 2021 Annual Report C H A I R M A N ’ S M E S S A G E after a hiatus in 2020. Their support benefitted more than 250 organizations across Hawaii and the West Pacific region. Through partnerships, grants, sponsorships, and hands-on volunteerism, we provided a variety of ways to help our community recover. We continued our participation in the SBA’s Paycheck Protection Program. Our PPP team processed more than 3,400 PPP loans totaling more than $287 million in 2021. By the end of the year, the team processed more than 7,500 PPP loan forgiveness applications for Hawaii businesses totaling over $700 million in federal funding. Our community continues to benefit from our $3 million grant to Hawai‘i Community Foundation’s Hawai‘i Resilience Fund in 2020 to address social and economic impacts of the pandemic, including Hawaiian Community Assets, a nonprofit that has developed financial opportunity centers to help individuals prepare for homeownership. Our team pulls together throughout unexpected challenges with a steadfast dedication to support the community. Employees across our regions have participated in beach clean-ups, volunteered at vaccination sites, packed bags of food for foodbank recipients, taught financial education, and much more. Further to our $5 million sponsorship of the Athletics Department at the University of Hawai‘i, we announced a unique endorsement partnership in September 2021 with eight of Hawaii’s basketball and volleyball student- athletes who play at the SimpliFi Arena at Stan Sheriff Center. This is the arena that BOH renamed as part of its sponsorship, and we are honored to be able to offer these SimpliFi Athletes new opportunities to help shape their futures. The students are women’s volleyball players Amber Igiede and Brooke Van Sickle; men’s volleyball players Chaz Galloway and Max Rosenfeld; women’s basketball players Kelsie Imai and Daejah Phillips; and men’s basketball players Samuta Avea and Kamaka Hepa. BOH has been supporting local athletes for decades, and the new name, image and likeness rules announced by the NCAA made these endorsements possible. As part of the sponsorship are opportunities for financial education; professional/career development and training, such as internships; and community service and engagement experiences. Ongoing Commitment to Branch of Tomorrow We recognize the importance of our branch services in a growing digital world, and we continue to invest in our Branch of Tomorrow concept that offers 21st-century upgrades, such as free Wi- Fi and easy-deposit ATMs, along with personalized service. We opened three new Branch of Tomorrow locations this year. In March, we opened our new Mililani Branch at Mililani Town Center on Oahu. The branch was selected for a 2021 Kukulu Hale Award for its efficient design and floor plan by the NAIOP Hawaii, the state’s leading trade association for commercial and real estate development. Our new Waialae-Kahala Banking Center opened on May 3, as a three-story building with the branch on the first floor. In August, we opened the second floor that houses The Private Bank offices, and the third floor that contains office spaces and conference rooms. On May 24, we opened our first Branch of Tomorrow on Hawaii Island in Niumalu Marketplace at Safeway. Our new Hilo Branch broke ground in early January 2022, and is scheduled to open later in the year. As a provider of essential financial services, we continue to respond to the changing preferences of our customers. To help us do this, we gather first-hand feedback from our customers and analyze input that maps their experiences from a variety of interactions. In 2021 alone, we received feedback via more than 20,000 customer surveys. Based on these insights, employees are creating opportunities for service improvements, and to better anticipate customers’ needs. One result was the implementation of Bank by Appointment, a new service that lets customers book an in-person or telephone appointment at their preferred location and time. More than 25,000 appointments were booked in 2021. Welcome and Farewell In October, Elliot K. Mills was elected to serve on our Board of Directors. Elliot is as passionate as he is accomplished, and joins us with an abundance of expertise and insight into our local travel industry. As the vice president of hotel operations for Disneyland Resort and Aulani, A Disney® Resort and Spa at Ko Olina, he leads more than 5,000 employees and oversees operations across four locations, including the Disneyland Hotel, Disney’s Paradise Pier Hotel and Disney’s Grand Californian Hotel & Spa in Anaheim, California, in addition to the Ko Olina resort on Oahu. I want to extend my sincerest mahalo to Vice Chair Wayne Hamano, who retired at the beginning of 2022 after more than 40 years at Bank of Hawaii. Wayne first joined the bank in 1977 as a commercial credit analyst, and served on our Executive Committee since 2006. He oversaw the Commercial Banking Group for decades, and I thank him for his dedication to the success of our clients, colleagues and the community. In Closing I am humbled and proud of the ingenuity and flexibility of our leadership and teammates as they responded to new challenges in 2021. They continued their unwavering support for our customers, community and one another, as we look forward to a new year filled with a renewed sense of purpose in our journey ahead. Mahalo nui loa, Peter S. Ho Chairman, President and CEO 2 0 2 1 F I N A N C I A L S U M M A R Y Bank of Hawaii C or poration and Subsidiar ies (dollar s in thou sand s , e xcept per-share amount s) FOR THE YEAR ENDED DECEMBER 31 2021 2020 253,372 6.29 6.25 2.74 1.14 % 16.94 % 17.92 % 2.36 % 58.86 % 83.76 99.10 75.65 12,259,076 22,784,941 20,360,108 10,391 1,611,611 35.57 1.29 % 2,056 54 Earnings Highlights and Performance Ratios Net Income Basic Earnings Per Common Share Diluted Earnings Per Common Share Dividends Declared Per Common Share Net Income to Average Total Assets (ROA) Net Income to Average Shareholders’ Equity (ROE) Net Income to Average Common Equity (ROCE) 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 Common Share Diluted Earnings Per Common Share Net Income to Average Total Assets (ROA) Net Income to Average Shareholders’ Equity (ROE) Net Income to Average Common Equity (ROCE) Net Interest Margin 1 Efficiency Ratio 2 $ $ $ $ $ $ 63,837 1.56 1.55 1.12 % 15.92 % 17.40 % 2.34 % 60.18 % $ $ 153,804 3.87 3.86 2.68 0.79 % 11.38 % 11.38 % 2.73 % 54.91 % 76.62 95.53 46.70 $ 11,940,020 20,603,651 18,211,621 60,481 1,374,507 34.26 $ 1.81 % 2,022 65 42,314 1.06 1.06 0.83 % 12.26 % 12.26 % 2.48 % 59.88 % 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). 5 Bank of Hawaii 2021 Annual Report Y E A R I N R E V I E W S T E E R I N G A C O U R S E T O A R E S I L I E N T R E C O V E R Y There is no denying that every aspect of life has been affected by the COVID-19 pandemic. It has brought about immense change, which, in some ways, has been beneficial. While we are still navigating uncertainties, there are also clear opportunities to chart a path and help empower our employees, customers and community to a successful future. During this unprecedented time, Bank of Hawaii employees have embraced new skills that have improved the way we operate. Our experience in serving generations of Hawaii’s people combined with innovative banking solutions allows us to explore and develop new opportunities to help improve lives. Our growth helps fuel a growing island economy. That’s why we work alongside our stakeholders—colleagues, customers, shareholders and community—to advance and accelerate positive long-term change, united in the certainty that success can and must be mutual. At our core, it’s the people and organizations we work with every day who keep us focused on responding to change—and who partner with us to create it. S A F E T Y F I R S T D U R I N G C O V I D - 1 9 Health and safety remain the top priorities at Bank of Hawaii. In 2021, BOH extended existing protocols established at the start of the pandemic to keep employees and customers safe. We continued to follow guidelines for mask wearing and social distancing in our facilities and branches, retained plexiglass shields at desks and teller stations, and upgraded doors to become hands-free. We also continued to reserve specific times at our branches to serve kūpuna and other vulnerable customers, along with their caregivers. As providers of essential services, our employees were among the first to become eligible to receive vaccines. Prompted by an alarming increase in COVID-19 cases during the summer, BOH now requires employees to provide proof of vaccination or undergo weekly COVID-19 testing. BOH covers the cost for unvaccinated employees opting for weekly testing. Unwavering Financial Support Bank of Hawaii continued its steadfast financial support to help customers and businesses weather the economic challenges of the pandemic. In 2021, BOH participated in the second round of the Small Business Administration’s Paycheck Protection Program (PPP). The expertise and diligence of our PPP team enabled us to process more than 3,400 PPP loans totaling over $287 million in 2021. The combined BOH PPP loans processed in 2020 and 2021 were almost 8,000 loans totaling over $830 million. By the end of 2021, BOH had processed more than 7,500 PPP loan forgiveness applications totaling more than $700 million in federal funding through this special program to assist Hawaii businesses. Specialized Loan Assistance Bank of Hawaii’s focus is to maintain long-term relationships with our customers and provide relevant financial services as their needs change. So, when customers experienced financial hardships related to COVID-19, we created an emergency loan program for a wide array of products, including residential mortgages, home equity credit lines, auto loans and installment loans. This loan program was initiated at the beginning of the pandemic and offered special payment deferments from March 2020 through June 2021—far longer than the typical 90 days offered in our marketplace. In addition, we offered loan deferrals to our commercial clients, which helped these customers for up to 18 months, compared to the usual six months in our market. These programs supported a variety of local business owners, including landlords who were able to support their tenants. Kahu Kordell Kekoa blesses BOH’s new Mililani Branch with Sr. EVP of Branch Banking Jill Higa, Mililani Branch Manager Matt Nealis and Sr. EVP of Consumer Banking Group Dana Takushi. T R A N S F O R M I N G C U S T O M E R E X P E R I E N C E ( C X ) Today’s customers have more choices than ever before. As the digital transformation of banking services continues to surge, Bank of Hawaii remains committed to developing new products and services as well as new ways to deliver them to ensure convenience and accessibility for our customers. To better understand our customers’ perspectives, Bank of Hawaii invested in gathering first-hand feedback at interaction touchpoints that included in-person, digital and telephone interactions. Our Customer Experience (CX) initiative was launched at the end of 2020 after a year of analyzing feedback and extensive employee training. In 2021, we continued gathering feedback via more than 20,000 surveys that identified opportunities for future growth and service improvements, with our employees coming together to design those solutions. We plan to continue transforming customer experiences so interactions are natural, useful and personalized to anticipate unmet customer needs. I M P R O V I N G B U S I N E S S O P E R AT I O N S T H R O U G H D I G I TA L I Z AT I O N As we improve how we connect with our customers through our CX initiative, we also look for opportunities to improve our operations overall. By focusing on operational excellence, we have found ways to reduce waste, improve quality and optimize the way we work together to provide long-term value to our customers. Operational excellence includes digitizing our processes not only to create better services and products for our customers, but also to create more efficiency in our daily workflow. In 2020, as more employees worked from home and fewer came into the office to retrieve mail, a BOH team set up a new digital system within weeks to deliver mail to inboxes. 7 Bank of Hawaii 2021 Annual Report Y E A R I N R E V I E W Operational excellence means reducing waste, improving quality and optimizing processes. In 2021, more than 66,000 pieces of mail were scanned and emailed directly to the intended recipients. Because of the improved delivery time, employees were able to take appropriate action more efficiently. Confidential materials are identified, safeguarded and delivered utilizing secure measures. Investing in Call Center Operations Our Call Center continues to be one of our essential customer service touchpoints. In 2021, we began exploring new ways to improve customer call center experiences. The goal was to better integrate Call Center services with our digital and branch services in a seamless partnership. To accomplish this, we increased staffing, updated training, streamlined processes and invigorated our management and team engagement efforts. This investment has decreased customer wait times by 64% just from May through October 2021, resulting in an average wait time of less than five minutes in the fourth quarter. Our Call Center will continue implementing new activities and training to empower agents to provide personalized and timely support in solving customer concerns and providing other improved customer experiences. B R A N C H E S C O N T I N U E T O T R A N S F O R M I N A M O D E R N W O R L D As customers choose to use digital options for more of their banking services, our branches continue to provide valuable opportunities to create more connections with customers and enhance their experience. At the start of the pandemic, we launched Bank by Appointment to facilitate in-branch interactions and provide customers an option for a dedicated time and location for their banking needs. The online system enables customers to book an in- person or telephone appointment at a location and time that is most convenient for them. Appointments can be made with specialists in a wide range of banking services for The Private Bank, Trust, Bankoh Investment Services Inc., mortgages, merchant services, commercial real estate and digital sales. These dedicated appointment times eliminate the need to stand in line for specialized services and provide a personalized and more efficient banking experience. In 2021, more than 25,000 appointments were booked, and about 1,700 were mortgage- related. Branch of Tomorrow Response to the Pandemic Ensuring that customers in all our communities have access to excellent financial services is part of Bank of Hawaii’s ongoing commitment. In early 2021, six additional branches that had been temporarily closed due to the pandemic were reopened. Due to dramatic changes in customer behavior that include a proliferation of digital banking and reduced in-person branch transactions, the decision was made to keep 12 BOH in-store branches permanently closed. A growing shift toward mobile and online platforms, card usage, and digital payment options were accelerated by the pandemic. Continued Investment in Branch of Tomorrow Bank of Hawaii’s Mililani Branch opened on March 22, 2021. The new Mililani Branch is located in the Town Center of Mililani and replaces the former branch in Mililani Shopping Center. It includes special features, such as enhanced air quality systems, intended to keep employees and customers safe throughout the pandemic and beyond. It also provides improved energy efficiencies and upgraded technology (including free Wi-Fi and easy-deposit ATMs). Bank of Hawaii has been serving the Mililani community since opening its first branch in the area in May 1970. The new Waialae-Kahala Banking Center opened on May 3, 2021. The branch is located on the first floor of the newly constructed three-story building and features our Branch of Tomorrow upgrades. The second and third floors opened on Aug. 30, 2021, with the second floor housing The Private Bank offices and the third floor containing conference rooms and office spaces. Bank of Hawaii has been serving the Waialae- Kahala community for more than 60 years. BOH’s new three-story Waialae-Kahala Branch opened in May 2021. First Branch of Tomorrow Opens on Hawaii Island Bank of Hawaii’s 12th Branch of Tomorrow opened in the Niumalu Marketplace Safeway on May 24, 2021. This in-store branch is the first Branch of Tomorrow on Hawaii Island. BOH has been serving the Kona community for 99 years, since acquiring the First Bank of Hilo and opening the Kona Branch in December 1922. The 438-square-foot Safeway Niumalu Marketplace Branch is the 10th BOH branch on Hawaii Island. Bank of Hawaii is continuing its commitment to the Branch of Tomorrow format, with our Hilo Branch scheduled to open in 2022. O U R E X P A N D I N G D I G I TA L T R A N S F O R M AT I O N The COVID-19 pandemic accelerated customers’ embrace of digital banking at Bank of Hawaii, and our extensive investment in these tools made it easy for customers to make the switch. Bank of Hawaii continues to provide more modern banking options for its customers and is focused on making digital banking simpler, safer and more convenient. BOH is constantly evolving to fit our customers’ preferences and lifestyles, and is accessible online by computer, tablet and smartphone. BOH delivered a safe, touchless way for debit card customers to pay for in-person purchases at retailers with new contactless debit cards. SimpliFi Continues to Expand SimpliFi by Bank of Hawaii is our digital banking platform that launched in 2018 with our online mortgage application, SimpliFi Mortgage. Today, SimpliFi by Bank of Hawaii has grown to help customers manage additional aspects of their finances online including opening accounts, buying a home, setting a budget and more. New Digital Features With digital convenience and safety in mind, in February BOH invested in issuing new contactless versions of its debit cards to its customers rather than waiting for their cards to expire. The cards offer a touchless way for debit card customers to pay for in-person purchases at retailers by simply waving or tapping their card at merchant terminals with the contactless symbol. In May, BOH launched Zelle in its mobile banking app for Guam and Saipan customers, providing them with a safe, person-to- person payment option. Payments are typically available within minutes when both parties are already enrolled in Zelle. Bank of Hawaii previously added Zelle to its app for Hawaii customers in 2019. A P L A C E T O C A L L H O M E Owning a home is a major milestone in building a better future, but there’s a severe shortage of affordable homes in Hawaii. Bank of Hawaii is well-positioned to offer solutions and work with homebuyers (including first-time homebuyers) to streamline the process of becoming a homeowner. BOH also works with developers by providing financing for projects that include affordable housing units. Building Wealth Through Mortgage and Home Equity Lending Because owning a home—and utilizing that equity—is how many people build wealth, Bank of Hawaii continues to invest in making the process of obtaining a mortgage or refinancing as easy and accessible as possible. BOH continues to be a leader both in home equity and residential lending. In 2021, we surpassed 2020 mortgage production by 6%, and home equity lending by 67%, making it a record-breaking year for both. According to Title Guaranty Hawaii, this positions Bank of Hawaii as the residential real estate leader in Hawaii. B A N K O F H AWA I I B R A N C H E S A N D A T M S (As of December 31, 2021) BRANCHES & IN-STORE BRANCHES ATMS State of Hawaii Oahu Hawaii Island Maui Kauai Lanai Molokai West Pacific Guam CNMI/Saipan Palau Total 50 26 10 8 4 1 1 4 2 1 1 273 185 38 28 20 1 1 34 26 5 3 54 307 9 Bank of Hawaii 2021 Annual Report Y E A R I N R E V I E W BOH continues to be a leader both in home equity and residential lending. SimpliFi by Bank of Hawaii is a convenient online resource for customers buying or building a home, or using the equity in their current home for other expenses. This digital service also includes resources—such as access to experts—to help new homebuyers become informed about what is needed when purchasing their first home. BOH offers specialized financing options, including government loans and construction loans. We are proud to be the only Hawaii-based lender providing loans for Department of Hawaiian Home Lands lessees. Thanks to our mortgage team’s depth of experience, we are able to streamline the complexities of the loan process. Supporting Affordable Housing for Residents and Developers Hawaii has a limited supply of affordable housing due to the high costs of land and construction, and Honolulu is one of the most expensive cities in the U.S. According to the National Low Income Housing Coalition, almost 70% of the demand is from households earning less than 30% of the area median income. Bank of Hawaii continues to support affordable, permanent housing through construction funding and lending. We are committed to investing in new opportunities to create more homes across the state, especially during the pandemic. BOH continues to be a market leader in increasing the supply of new, affordable housing developments. In 2021, the bank supported the acquisition or start of construction for nearly 800 affordable housing units (490 on Oahu, 201 on Maui and 101 on Hawaii Island), with almost 800 more in the pipeline. Three affordable housing construction projects on Maui were assigned more than $87 million in funding from BOH. Urban Housing Communities, LLC and the nonprofit Ikaika Ohana are the partners developing all three projects. Groundbreaking was held this year on 89 units at Kaiāulu O Kupuohi in Lahaina. In Kihei, financing was confirmed for 64 units at Kaiāulu O Halele‘a-Phase 1, and another 56 units at Kaiāulu O Halele‘a- Phase 1B. The new construction will have a mix of one- to four-bedroom apartments, all of which are specifically designed to provide housing for families with incomes between 30% and 60% of the area median income. On Oahu, BOH provided bond financing and equity investment for affordable kūpuna rental housing in Moiliili in Honolulu. Construction started in September 2021 for a new, six-story apartment building with 80 studio and 24 one-bedroom units reserved for seniors 55 and older with incomes between 30% and 60% of the area median income. Ho‘okahua Development LLC, a partnership between the nonprofit Hawaiian Community Development Board and 3 Leaf Holdings, LLC, is the developer of this project, which offers convenient access to a range of services plus employment opportunities and educational resources. The project is targeted for tenants to move in 2023. H E L P I N G B U S I N E S S E S P R E P A R E F O R T H E F U T U R E For some people, preparing for the future means planning for different stages of their lives. For others, it means being ready to handle the unexpected. While we can’t predict the future, we can help plan for it. The experienced team of financial advisors at Bankoh Investment Services, Inc. has been helping generations of Hawaii’s people—and their businesses—anticipate the future by protecting their assets, growing their wealth and preparing for retirement. During the pandemic, three of our most seasoned Certified Financial Planners, with combined experience of nearly 100 years, took a hands-on approach by assisting with the BOH PPP application and forgiveness process to ensure that local businesses got the help they needed from this special program. Our financial advisors take the time to develop a relationship with clients and get to know them on business and personal levels. Establishing this foundational relationship is necessary to provide the valuable insights and guidance needed to craft a holistic plan customized to a client’s specific needs and concerns. For businesses, this can mean insurance planning, including key-person insurance policies for owners, top executives and others critical to a company’s success. Our team offers guidance on sales agreements for buying or selling a business, and professional disability and long-term care insurance. They also offer a wealth of retirement planning options to ensure a financially fit future. In addition to traditional 401(k)s and Defined Benefits Plans, they can also help set up retirement plans designed specifically for small business owners—solutions such as Simplified Employee Pension plans (SEP IRAs), Savings Incentive Match Plans for Employees (SIMPLE IRAs), and Cash Balance Pension plans. At Bankoh Investment Services, Inc., our clients enjoy the best of both worlds—local and personalized investment expertise combined with access to large and well-established mainland investment and insurance providers. It is through these strategic partnerships that we are able to provide our clients with a comprehensive and competitive suite of investment and insurance solutions that can be customized for growth, protection and wealth transfer. O U R C O M M U N I T Y G I V I N G B A C K A N D M O V I N G F O R W A R D T O G E T H E R Hawaii always pulls together to help in times of need, and Bank of Hawaii and Bank of Hawaii Foundation are there to provide year-round philanthropy through sponsorships, volunteerism and grants. In 2021, Bank of Hawaii, its Foundation and employees contributed nearly $2.2 million to the community. Along with the generous support of our employee volunteers, who know how to make a difference while safely social distancing, we partner with a variety of local nonprofits to address a spectrum of needs and assist those hit hardest during the pandemic. As the pandemic continues to pose new challenges, we are resilient and continue to be inspired by those who are working to move forward together. E M P L O Y E E S G I V I N G B A C K Bankoh Blue Crew Volunteers Live Kōkua Giving Campaign 2021 marked a return to our annual employee giving campaign, which raised $559,575. Because many employees are still working remotely, the campaign was transformed into an online fundraising effort. Partnering with Aloha United Way, we shared stories and information about the more than 300 nonprofits that AUW serves. Themed #BankohStrongForOurCommunity, over 90% of our employees donated to 257 organizations making a difference for some of the most vulnerable in our communities during the pandemic. After gaining confidence on how to interact safely with others during the pandemic by wearing masks and social distancing, our employees resumed volunteering within the community during 2021. Here are some of the highlights. • Summer interns worked together to improve landscaping at Hawai‘i Nature Center on Oahu. • BOH volunteers participated at a variety of vaccination centers/sites, including: - Kōkua Kalihi Valley Comprehensive Family Services on Oahu. - Southern Regional Clinic, the Talofofo Gym and Ypao Beach on Guam. • Volunteers from the BOH Military Employee Resource Group worked with Honolulu Habitat for Humanity to build a home for a military veteran and his family. • At Hawaii Foodbank, volunteers packed over 5,000 bags of food as part of their Food 4 Keiki School Pantry Program. • Volunteers went out to Maunalua Bay and helped remove 500 pounds of invasive limu with Mālama Maunalua. Along with several teammates, Harmon Branch Manager Rachalyn M. Cardines volunteered at three vaccination sites across Guam by assisting in a variety of tasks every Friday and Saturday from April 23 through May 14. BOH interns and volunteers help spruce up the facilities at Hawai‘i Nature Center. From left: Marcus Mau, Kayla Hoang, Jenna Muraoka, EVP of Internal Audit and Hawai‘i Nature Center board member Lacey Nakaguma, Georgia Ryan, Melanie Yang and Tessa Nishida. 1 1 Bank of Hawaii 2021 Annual Report O U R C O M M U N I T Y O U R C O M M U N I T Y C O M M U N I T Y G I V I N G A T A G L A N C E The following are some of the gifts from Bank of Hawaii Foundation in 2021, and the impact they made. n Hawai‘i Community Lending: $10,000 supported their outreach efforts to low- and moderate-income Hawaii Island residents to inform them about a federal grant available to provide more than $21 million in rent relief and assistance with utilities. Many of the applicants live at 80% below the average median income for the area. Top photo: BOH’s Military Employee Resource Group donated a variety of items, such as clothing, linens, school supplies, etc., to the individuals and families that U.S. VETS serve. Here, Bankoh Blue Crew volunteer Thinzar Nyun provides a veteran a backpack filled with hygiene items. Bottom photo: Bankoh Blue Crew volunteers Wilma Kanda n Kōkua Kalihi Valley (KKV) Comprehensive Family and Kaleo Kekoolani helped fulfill orders and deliver food for Services: $4,000 grant, which was used to provide lunch for the volunteers, KKV staff, Hawaii Army National Guard and Honolulu Fire Department working at the vaccination site at the former Bank of Hawaii Kalihi Branch. Additionally, Bank of Hawaii provided in-kind support valued at over $30,000 with the use of its Kalihi Branch to administer 1,359 vaccinations to vulnerable members of the community from March 27 to June 26. n Mental Health America of Hawai‘i: $20,000 donation made more online resources available and accessible across social media and beyond as part of its mission to promote mental wellness. n Maui Health Foundation: $50,000 donation over two years to its Patient Resource Assistance Fund, which provides financial support for non-acute medical care to lower-income patients in need, so that they may be discharged in a safe and healthy way. n Palama Settlement: $25,000 donation supported its newly established Digital Arts Academy, the only formal digital arts program in the Kalihi-Palama neighborhood. The program is part of a Center of Innovation, created to train youth in digital graphic skills that can translate into job readiness. During the pandemic, the program also assisted students with online education challenges by making computers more accessible to those without adequate technology at home. in-person and drive-thru pickups at The Pantry. n Project Vision Hawaii: $30,000 donation helped the nonprofit operate its mobile clinics, which provide hot showers and health resources (including eye exams for children) to those who have a low income or are experiencing homelessness. In 2021, Project Vision Hawaii pivoted to also administer COVID-19 testing and vaccines to various communities. n The Pantry by Feeding Hawaii Together: $50,000 grant over two years beginning in 2021 helped purchase food and provide staff to support the only “e-commerce” food pantry in America. The Pantry serves an average of 13,000 individuals each month. n YWCA’s Dress for Success: $25,000 donation helped empower women, including those transitioning out of prison or shelters, or who are new or returning to the workforce, to achieve economic independence. The program provides networking support, training, and professional attire to gain skills, confidence and jobs. 2021 VIRTUAL HONOLULU PRIDE PARADE SPONSORSHIP As part of our commitment to supporting diversity, equity and inclusion in the community as well as in the workplace, Bank of Hawaii renewed its sponsorship of the Honolulu Pride Parade and Festival with a four-year commitment of a $15,000 donation each year through 2024. The donation supports not only the festival and parade, but also helps to fund other program initiatives of the Hawai‘i LGBT Legacy Foundation. In previous years, our employees have turned out in big numbers to show their support by walking in the parade. This year featured a virtual “Tiny Floats Parade” televised on KHON2, and BOH’s tiny float is pictured here. 2 0 2 1 F I N A N C I A L E D U C AT I O N / C O M M U N I T Y R E I N V E S T M E N T AC T (C R A ) The focus of our services under CRA was to partner with other organizations to improve financial literacy, create affordable housing and well-paying jobs, support small businesses, address homelessness and improve healthcare. Providing a Helping Hand to Families Seeking Housing Susannah Wesley Community Center (SWCC), a social service agency in Kalihi, asked Bank of Hawaii to provide volunteers to assist families applying to enter a Section 8 Housing waitlist. For the first time, the application process was entirely online. Thirty-two BOH volunteers helped 300 families complete the application. SWCC is the only organization offering one-to-one support. Junior Achievement, Guam and Hawaii BOH volunteers have been fostering young entrepreneurs and improving financial literacy through decades of partnership with Junior Achievement. In 2021, 18 BOH volunteers in Guam served as advisors, from product development through the sales process. Guam Economic Development Authority (GEDA) was so supportive, it funded a space for Junior Achievement in Chamoru Village to feature and sell products designed by the students. Together with our Hawaii bankers who taught Junior Achievement coursework virtually at 19 Title 1 schools, nearly 150 employees made financial education possible. Saipan Small Business Grants 2021 marked the 10th year of the I Kinometi Para I Kumunidåt I Islå-t, which are Small Business and Revitalization and Development grants from Bank of Hawaii. Five grants up to $5,000 each are awarded every year to support and help new and existing small businesses thrive and give back to the community. This year, more than 80 applications were received and one of the five recipients did just that. With help from the grant monies, Benjamin Babauta, owner of Tylers Gelatte Stone, added an additional employee and organized a ‘Small Business Sunday’ event in September at Sugar King Park that gave another 13 small businesses a venue to display their products. Benjamin Babauta, owner of Tylers Gelatte Stone in Saipan, received a $5,000 small business grant in 2021, which he used to expand his business and give back to the community. 1 3 Bank of Hawaii 2021 Annual Report O U R E M P L O Y E E S E M P OW E R E D A N D M O V I N G F O R W A R D For nearly 125 years, Bank of Hawaii’s greatest strength has been its employees who work together to build meaningful relationships with customers and deliver exceptional service. Our employees are the heart of our business, and we continue to support and empower them with new opportunities for professional and personal growth. We are committed to helping them thrive, achieve successful careers and attain fulfillment. Our Military Employee Resource Group volunteers worked together throughout the year, including with Honolulu Habitat for Humanity to help build a home for a military veteran. . BOH held a vaccination event for West Oahu employees at Hale O Kapolei, to provide a convenient way to receive the COVID-19 vaccine. Ongoing and Flexible Care for Employees During COVID-19 The health, safety and well-being of our employees continues to be our No. 1 priority. At the height of the pandemic, approximately 70% of our employees were working remotely, with nearly half of our employees continuing to work from home at the end of 2021. As our community began experiencing periods of low infection rates and the hope that came with the availability of vaccines, we were formulating plans to determine how best to transition employees back into our various locations. In addition to renovations to our facilities and the establishment of mask and social-distancing requirements, medical professionals were made available to answer employees’ questions and we requested feedback to understand and address employee concerns. In July 2021, the surge in infection rates from the Delta variant halted those plans and influenced our decision to require vaccinations as the best way to protect employees, customers and our communities. The few unvaccinated employees are tested weekly for COVID-19. At the close of 2021, our plans for more employees to return to on-site work were put on hold again as case counts rose due to the highly transmissible Omicron variant. Our leadership continues to monitor the situation to bring our teams back safely when the time is right. Listening to Employee Input Our employee survey tool launched in 2020 to obtain anonymous feedback and to proactively respond to concerns. We surveyed employees in April and October 2021. Participation was high and the valuable information gathered helped develop new programs. As a result, career development sessions such as “Navigating Your Future” and “Career Agility” were offered. The Art of CX Training Improving our customers’ experiences (CX) with the bank and their relationships with us continues to be a major initiative. While collecting and measuring feedback from customers, we also invested in multimedia CX training again in 2021. The first phase of training was rolled out in 2020, and phase two was introduced in September 2021. These new learning modules focus on BOH’s mission, vision and values, which are translated into customer-centric behaviors that have been identified through our research. To add a deeper commitment toward a CX culture, all employees are asked to accomplish a performance goal specific to the way CX can be improved in their unique job. This goal-oriented approach applies to all employees—both customer- facing and those who serve internal BOH employee customers. Continued Focus on Diversity, Equity and Inclusion Bank of Hawaii values the contributions of all its employees and has always promoted a workplace culture that is inclusive, respectful and welcoming of diverse backgrounds and experiences. An important component to welcoming diversity is through our Employee Resource Groups (ERG): RainBOH, Women Inspired, and Military, with additional ERGs planned for 2022. Cynthia Esparza and boyfriend Derek Taylor celebrated her graduation in May 2019, when she earned her associate’s degree through CAP. In September 2021, she earned her bachelor’s degree in management from Chaminade University of Honolulu. Supporting Educational Journeys 2021 marks the fifth anniversary since the Bank of Hawaii College Assistance Program (CAP) was launched in 2016. The program provides a path for employees to obtain a college education—free tuition makes this dream a reality in partnership with Chaminade University of Honolulu and the University of Hawaii Community Colleges. C A P H I G H L I G H T S associate’s degrees 5 employees earned their 4 employees earned their 75 employees are currently enrolled in the program bachelor’s degrees Improving Connections; Empowering People To help maintain Hawaii’s special culture of ‘ohana and working together toward common goals, renewed attention was paid to engaging teammates during the pandemic, especially those working remotely. Based on employee feedback from surveys, special online sessions were created in 2021 to connect with employees and encourage collaboration. • Exec Connect launched in April, giving employees opportunities to interact with members of the Executive Committee. Employees hear about high-level strategies and share their own concerns and observations. Exec Connect was a hit, and proved especially valuable at welcoming new employees, allowing them to familiarize themselves with key executives and other employees. • Recruit Connect launched in July to help teammates identify job opportunities within the organization and find out more about them. In some cases, sessions led to referred candidates joining the bank, and to current employees finding a new career path. • Manager Excellence Forums launched in January as a platform to connect managers and enable them to learn from and support one another when facing management issues, and to discuss practical solutions. Manager engagement has been key to navigating the pandemic environment, and these forums help managers stay connected and improve their management skills while moving forward with their teams. Forum topics are suggested by the participants, who meet every other month, and have included increasing employee morale, resilience, managing hybrid teams, self-care and employee retention. 1 5 Nourishing Our ‘Ohana Our Bankoh Meals-To-Go program, which launched in May 2020, took the idea of sharing meals to a new level by offering employees free family-style meals once a week. With our Café Blue cafeterias temporarily closed, we utilized those facilities to provide meals for 98 weeks, officially ending in June 2021. Employees not in need were encouraged to “share it forward,” by donating their meals to family members, kūpuna or those experiencing food insecurity. Any food not utilized was donated to Aloha Harvest. Our Café Blue cafeterias at the downtown Tower and Hale O Kapolei later reopened, serving contactless food-to-go, which employees can order online through their laptop or mobile device. B A N K O H M E A L S - T O - G O H I G H L I G H T S 418,364 116,424 meals distributed on Oahu meals distributed on neighbor islands and the West Pacific region 12,843 pounds of food donated to Aloha Harvest 113 neighbor island and West Pacific region restaurants received support through participation in the program 51 BOH volunteers helped distribute meals Bank of Hawaii 2021 Annual Report P R O F I L E : C o m m e r c i a l / C o r p o r a t e B a n k i n g C l i e n t Stephen Metter, CEO and principal of MW Group, Ltd., at Pioneer Plaza in downtown Honolulu. Pioneer Plaza is one of the properties owned and operated by MW Group. MW GROUP, L t d . S t e p h e n M e t t e r S T E P H E N “ S T E V E” M E T T E R : Everything we’ve done together has and he does an excellent job at advising us, MW Group was founded in 1991 on a contributed to a long-term relationship that identifying all the options, and making sure handshake between Michael Wood and benefits all involved. They have always that he’s providing us with all the myself. Over these 30 years the company been a partner with principles. They’ve variations. has grown to a little over $1 billion in always been looking for ways to create diversified real estate assets in Hawaii. value. These include several shopping centers At the core of MW Group is ‘ohana, our community, and support for all of our and office buildings on Oahu and Maui, and During the different market cycles, BOH stakeholders. All our executives and some light industrial properties. We also has always been very proactive in coming managers serve the community on boards built a self-storage brand, Hawaii Self to us with innovative ways to refinance our or through direct voluntary service; we’ve Storage, with seven facilities, and six Plaza assets. For example, during the financial never had to make this a requirement Assisted Living Communities for Hawaii crisis we had some loans maturing and because it’s inherent in their individual and seniors. The goal is clear: to care for and to BOH provided a thoughtful and creative collective commitments. protect our residents, tenants and renters. solution leading to the purchase of Kapolei Neither of the principals came from money. Self Storage West. Both of us paid our way through college MW’s success has enabled us to give back in other ways. My business partner, Mike and were supporting our parents at a Most recently, we entered a partnership Wood, donated $1.2 million to build relatively young age. We needed a lot of with BOH to build our newest self-storage Ho‘omalu O Na Kamali‘i, a safe haven for help to build our company and survive, and facility on their property on Dillingham abused and displaced children entering the Bank of Hawaii has been a critical partner Blvd., on Oahu. The bank provided child welfare system. The home opened in in the evolution of MW Group. financing for the repurposing of an existing Maili, Oahu, in 2009, and he has also been building and a ground up five-story facility funding its operations through regular At its core MW Group is relationship- that opened Sept. 2021. We had to work contributions to his $8 million 20-year centric, both internally and externally. together on the project because their pledge. In addition, MW Group, Plaza Internally, we’re driven by family values newest Iwilei Branch is on the same lot. Assisted Living and Hawaii Self Storage and a deep sense of ‘ohana. Our talented The final product represents the best provide regular monetary support through leadership team of about 30 people has efforts of both organizations. scholarships, athletic sponsorships and been with the company for an average of other community donations. 16 years, and for that I’m very grateful. I have a relationship with Peter Ho that’s very deep. I appreciate his commitment BOH has the resources to address virtually We are driven by local values while and absolute focus on community, his any growth situation in our marketplace. maintaining an investment-banking focus, ability to transform and modernize the And they have the depth and banking discipline and metrics. BOH understands bank, and the leadership lessons that he’s experience to underwrite it. They also have these metrics and how to measure them, shared during that process. And he’s a commitment to relationships to ensure which has made them a wonderful produced exceptionally strong results, that they’ll fully vet and fully understand long-term partner, and they’ve also which is comforting as a partner. You want the borrower’s requirements so that they provided us with guidance along the way. your bank to be in a strong and stable can pair up the appropriate credit and position, and BOH is clearly very strong banking solutions. We are grateful to have deeply integrated and has consistently ranked at the very top relationships with BOH, fostering creativity of regional banks. and improving overall performance. They No matter what’s happening in the macro-economy—whether it’s a financial are constantly helping us to address I appreciate our relationship officer, Sr. crisis, or a Japanese financial crisis, or short-term needs and long-term growth. EVP Guy Churchill, for being both strategic good times, or COVID—Bankoh has always They are very proactive, always thinking and tactical. Guy helps us understand what been there. Through all these different about what could be coming around the structures may be available so that when it cycles, Bankoh has helped us grow. We corner, and they are constantly dialoging comes time for implementing, we are can always count on Bank of Hawaii. not only between CEOs, or between the well-versed when we utilize products like a heads of our real-estate section, but also floating rate loan or a credit facility. We’ve extending throughout the organization. done some very complex credit facilities, There are a lot of peer-to-peer ideas that are shared. 1 7 Bank of Hawaii 2021 Annual Report P R O F I L E : T h e P r i v a t e B a n k C l i e n t s DRS. BENNETT and SHELLEY LOUI D R . S H E L L E Y L O U I : Bennett and I continues to manage everything for us: our I now do most of my business banking by have been married for 20 years, and we personal accounts, my business, and our email or text. Davin knows my emails are have three children: Matthew, Shawn and investments and retirement savings. Then coming around midnight, and he’ll respond Katie. I’m a pediatrician in private practice, in 2020, during COVID, he reached out to around five in the morning. He knows our and Bennett is an internist at Straub. We’re us and recommended that we refinance our lifestyle and when I can answer questions, pretty busy, but we both think that family mortgages. which is on weekends or late at night. time is very important. B E N N E T T: We’ve refinanced in the past B E N N E T T: Shelley and I are primary care D R . B E N N E T T L O U I : We’re both using a mortgage broker, but when Davin doctors; we have long-term relationships medical professionals and we’re both very recommended we refinance, he had just with our patients, and we expect our busy with our family and professional lives. the person to help us. Because this was patients to call us anytime they need us. When it comes to our finances, we want to during COVID, it was almost entirely done And that’s something that we feel we can depend on people that we can trust and by computer and email through the app. do with our banking partner, Davin. That’s rely on because we are not experts in We had only one in-person meeting to do obviously something that we value and finance. the signing, and that was the easiest understand. It’s amazing to have that kind My family has done business with BOH for several generations. With our large family experience for refinancing that we’ve ever of service. had. S H E L L E Y: During COVID in 2020, we and Shelley’s private practice, our We’ve been with Davin for over a decade shut down our office for a couple of individual and business banking needs are and as his career has evolved, our months—we only saw emergency visits, different from my parents and relationship with the bank has evolved as and we put routine visits on hold. Our grandparents. well. Davin knows us so well now business changed a lot during that time, so S H E L L E Y: When we got married in 2001, I switched my personal banking to join Bennett’s at BOH. When I started my private practice in 2003, I originally started personally—he knows our family, he knows Davin reached out and recommended that our kids, and he knows what stage of life I apply for the PPP loan. He and the we’re in—he has a great sense of who we accountant took care of everything and are so he can anticipate actions to take. made applying pretty easy. It was very my business banking with another bank, S H E L L E Y: Davin is probably the most but I wasn’t happy with the relationship. important asset at the bank for me. He’s We happened to walk into the Kahala very personable and accessible; I will call or helpful to have that funding to pay my staff during months when there was a lot of uncertainty. Branch in 2009 and met Kālai Services text him anytime I need him. He’s also very The people at BOH are very reliable and Relationship Manager Davin Nakasato knowledgeable, and if he doesn’t have an trustworthy. I have a lot of confidence with there. He was a business banking officer answer, he’ll get back to us with the having all our banking services there. It at the time, and I switched my business information. banking accounts to BOH for him to manage. He was great; he really helped me out a lot with the business. In 2011, he became the assistant banking center manager for the Waialae-Kahala Branch, but he still functioned as my business banker. B E N N E T T: It’s a huge challenge for a doctor like Shelley who’s very busy with her practice, and needs to manage the always goes back to Davin: The service he provides is unbelievable. He always makes us feel like we’re his most important clients. entire business side that you never learned I think I was a little nervous at the beginning in school. She learned about anatomy and to switch over to BOH, because it was new pharmacy, but not about how to do payroll. to me. But it’s been a great experience not It’s been critical to her success to have only for our personal banking, but also for In 2014, Davin moved to Private Banking as someone like Davin at BOH. my business. You can get everything done a private banking officer. We agreed to have him handle our accounts and moved our investments from a national financial institution to BOH. As Davin continued to be promoted at the bank, he kept handling my business account and services. In 2017, when Davin moved to Kālai Services, he took our accounts with him. He still S H E L L E Y: If he’s not able to help us there. himself, he’s always able to connect us B E N N E T T: We like the long-term with really good people who can. For relationship that we’ve built at BOH, and instance, I was having trouble with my the comprehensive services we receive. accountant, and he referred me to a Over time we’ve used many different different accountant who I can just email products and services that the bank offers, to take care of everything. and we feel very well taken care of. 1 8 Drs. Bennett and Shelley Loui, their children Matthew, Shawn and Katie, and their family dog, Yuki, at their home in Honolulu. P R O F I L E : B r a n c h B a n k i n g C l i e n t Lamont Brown, owner and chef of Maya’s Tapas & Wine LLC in Haleiwa, Oahu. MAYA’S TAPAS & WINE L L C L a m o n t B r o w n LA M O N T B R OW N : Maya’s Tapas & The most important thing to me is family were a local restaurant and the community Wine is a small, family-owned and being safe and secure. Joni and was going to show up to support us, and neighborhood restaurant that I opened in James, along with the rest of the BOH they did. As a business owner we’re only 2018. Our emphasis is providing the staff, have taken the stress out of being a allowed to operate because the community a place to celebrate and have first-time homeowner, as well as taking out community has our back, and I was glad to a good time without having to worry about a loan to open up the business, and then help support the volunteers doing the clean driving into town. further as a first-time business owner. I’ve up after the flooding in Haleiwa in March When my wife and I first moved to the North Shore it happened to be on our wedding anniversary. We wanted to have a nice, quiet dinner, but we didn’t feel there done all these things with help from BOH. 2021. If it wasn’t for the community, we They’ve made it so seamless that they wouldn’t be here today. Therefore, it was, allow me to not think about the banking and still is, very important to give back to aspects of playing all those roles. the community. was someplace we could sit down and do When taking out the loan for the business, Bank of Hawaii has allowed me to live my so. So when it was time to open the they held my hand throughout the process. dreams of owning a home and opening a restaurant that was one of the things I kept Never having been a business owner business. They’ve not only allowed me to in mind. before, I wasn’t sure what I was getting live these dreams, but they’ve also made it I named the restaurant after my daughter, Maya, my first-born child. I named the restaurant after my daughter so that I wouldn’t forget to run the restaurant with the same standards that I want to raise her with, and want her to grow into and believe in. It was very important for me to put her name out there so that when times get tough, I can remind myself that it’s her into. I had a lot of questions and, of course, very easy to do so, especially as a first- my wife, who has more of the financial timer who didn’t know what he was experience in our family, also had a lot of getting into. BOH has made me feel so questions. So, when we went into the comfortable, it doesn’t make sense for branch and sat down together with Joni, me to bank anywhere else. she made it easy to understand what we were getting into with the loan, how we were going to make the payments, and so on. name up there, not mine, and remind BOH also helped me with the PPP loan, myself of the standards that I want her to which was a flawless process. Anytime I live up to: “Never give up and give it your had a question for Joni or James about the all in whatever it is you do.” loan, I would ask them at the branch. And if I’ve been a customer of Bank of Hawaii since I first moved to Hawaii 12 years ago. Then when we moved to the North Shore, they didn’t have an answer, by the time I got back to the restaurant I would have an email from them with an update. I got to know the staff here at the Haleiwa To me, BOH stands for family, ‘ohana. I see Branch. It was a no-brainer when the how all the staff members greet everyone business opportunity came up that I by name—not just me—and make them feel wanted to bank with Bank of Hawaii. welcome and at ease. Sometimes we go I work mostly with Haleiwa Branch Manager Joni Pupu and Assistant Branch Manager James Kumura, and I can’t thank the branch staff enough. There was a time into the bank to deal with difficult situations, but they always seem to find a way to take care of us and make us feel like family. when I had to deal with fraud, someone In the same way that BOH treats everyone taking money out of my account, and they like family, I think it’s important that made me feel so secure. They let me know everyone in the community step forward that fraud happens across the U.S. and the whenever that community is in need. world, and the way they took care of me When COVID hit and everything was shut and walked me through resolving the issue down, many people were worried. But I is what made it so special. had that sense of comfort knowing that we 2 1 Bank of Hawaii 2021 Annual Report 2 0 2 1 F I N A N C I A L R E P O R T S 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 C or poration and Subsidiar ies (dollar s in thou sand s , e xcept per-share amount s) FOR THE YEAR ENDED DECEMBER 31 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 Preferred Stock Dividends Net Income Available to Common Shareholders Basic Earnings Per Common Share Diluted Earnings Per Common Share Dividends Declared Per Common Share Basic Weighted Average Common Shares Diluted Weighted Average Common Shares 2021 2020 $ 398,616 $ 417,498 64,550 61,955 10 883 702 526,716 15,216 13,260 7 - 943 29,426 497,290 (50,500) 547,790 46,068 14,964 25,564 55,457 (1,297) 3,224 7,784 19,589 171,353 228,293 26,244 35,703 20,297 12,895 6,536 63,621 393,589 325,554 72,182 253,372 2,975 250,397 6.29 6.25 2.74 39,837,798 40,053,664 $ $ $ $ $ 61,294 66,055 14 902 661 546,424 32,966 15,281 95 62 1,698 50,102 496,322 117,800 378,522 43,456 17,871 24,910 47,056 9,932 3,362 7,388 30,434 184,409 207,329 39,533 35,448 18,499 12,186 5,780 55,032 373,807 189,124 35,320 153,804 - 153,804 3.87 3.86 2.68 39,726,210 39,892,107 $ $ $ $ $ Refer to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 for the Consolidated Financial Statements, including Report of Independent Registered Public Accounting Firm, thereon. 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 C or poration and Subsidiar ies (dollar s in thou sand s) AS OF DECEMBER 31 2021 2020 Assets Interest-Bearing Deposits in Other Banks Funds Sold Investment Securities Available-for-Sale Held-to-Maturity (Fair Value of $4,646,619; $3,348,693) Loans Held for Sale Loans and Leases Allowance for Credit 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 Securities Sold Under Agreements to Repurchase Other Debt Operating Lease Liabilities Retirement Benefits Payable Accrued Interest Payable Taxes Payable Other Liabilities Total Liabilities $ 2,571 361,536 4,276,056 4,694,780 26,746 12,259,076 (157,821) 12,101,255 21,462,944 196,327 199,393 95,621 45,242 2,332 22,251 31,517 344,587 384,727 22,784,941 7,275,287 4,628,567 7,456,165 1,000,089 20,360,108 450,490 10,391 103,210 38,494 2,499 11,901 196,237 21,173,330 $ $ $ 1,646 333,022 3,791,689 3,262,727 82,565 11,940,020 (216,252) 11,723,768 19,195,417 279,420 199,695 99,542 49,303 2,332 19,652 31,517 291,480 435,293 $ 20,603,651 $ 5,749,612 4,040,733 6,759,213 1,662,063 18,211,621 600,590 60,481 107,412 51,197 5,117 2,463 190,263 19,229,144 Shareholders' Equity Preferred Stock ($.01 par value; authorized 180,000 shares; issued / outstanding: December 31, 2021 - 180,000 and December 31, 2020 - 0) 180,000 - Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: December 31, 2021 - 58,554,669 / 40,253,193 and December 31, 2020 - 58,285,624 / 40,119,312) Capital Surplus Accumulated Other Comprehensive Income (Loss) Retained Earnings Treasury Stock, at Cost (Shares: December 31, 2021 - 18,301,476 and December 31, 2020 - 18,166,312) Total Shareholders' Equity Total Liabilities and Shareholders' Equity 581 602,508 (66,382) 1,950,375 (1,055,471) 1,611,611 22,784,941 $ 580 591,360 7,822 1,811,979 (1,037,234) 1,374,507 $ 20,603,651 Refer to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 for the Consolidated Financial Statements, including Report of Independent Registered Public Accounting Firm, thereon. 2 3 Bank of Hawaii 2021 Annual Report R E L A T I V E S T O C K P R I C E 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 Bank of Hawaii Corporation / Bank of Hawaii (As of Dec. 31, 2021) BOH S&P Regional Banking Index KBW Regional Banking Index S&P 500 $150 $140 $130 $120 $110 $100 $90 136.61 133.19 126.89 109.32 12/20 1/21 2/21 3/21 4/21 5/21 6/21 7/21 8/21 9/21 10/21 11/21 12/21 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 crisis COVID-19 e r a h s r e p d n e d v d i i $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 6 8 9 1 7 8 9 1 8 8 9 1 9 8 9 1 0 9 9 1 1 9 9 1 2 9 9 1 3 9 9 1 4 9 9 1 5 9 9 1 6 9 9 1 7 9 9 1 8 9 9 1 9 9 9 1 0 0 0 2 1 0 0 2 2 0 0 2 3 0 0 2 4 0 0 2 5 0 0 2 6 0 0 2 7 0 0 2 8 0 0 2 9 0 0 2 0 1 0 2 1 1 0 2 2 1 0 2 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 8 1 0 2 9 1 0 2 0 2 0 2 1 2 0 2 Note: Historical dividends adjusted for stock splits O U R J O U R N E Y A H E A D Hawaii’s voyaging heritage has always inspired us to venture beyond the horizon. Today, as we contemplate the months and years ahead, we’ve come to a point in our journey where perseverance and innovative thinking lead the way. This isn’t a journey we alone are taking. We’re all navigators as we each, in our own way, meet every opportunity presented to us. For Bank of Hawaii, this is a journey full of purpose and promise, one that connects us to our employees and customers more closely than ever as we strive to be of greater value to those we serve and who need us most. As our journey continues to unfold, we move ahead in the spirit of unity, confident in knowing—as the Polynesian voyagers knew more than 1,000 years ago—that new opportunities await us all beyond the horizon. Background: BOH commissioned this signature art installation that brings together the meaning of Waialae-Kahala. Wai‘alae, the fresh water spring frequented by the alae, or Hawaiian Coot, and Kahala, the amberjack fish found near the beaches in this region. The feathers of the alae are layered in a repetitive pattern, then transition to an organic formation echoing a school of fish, which represent the Kahala. 2 5 Bank of Hawaii 2021 Annual Report E X E C U T I V E C O M M I T T E E Bank of Hawaii Corporation / Bank of Hawaii (As of Dec. 31, 2021) From left: Mary E. Sellers, Peter S. Ho, James C. Polk From left: Ruth L. Erickson, Wayne Y. Hamano, Susan L. Ing, and Dean Y. Shigemura Matthew K.M. Emerson and Dana S. Takushi Bank of Hawaii's Executive Committee represents the major functions of the bank and is accountable for its overall strategy and performance. Peter S. Ho Chairman, President and Chief Executive Officer Dean Y. Shigemura Vice Chair and Chief Financial Officer Sharon M. Crofts Vice Chair, Client Solutions Group Matthew K.M. Emerson Senior Executive Vice President, Retail Lending and Deposits Wayne Y. Hamano Vice Chair James C. Polk Vice Chair and Chief Banking Officer Mary E. Sellers Vice Chair and Chief Risk Officer Ruth L. Erickson Senior Executive Vice President, E-commerce and Demand Center Susan L. Ing Senior Executive Vice President and Chief Marketing Officer Patrick M. McGuirk Senior Executive Vice President, Chief General Counsel and Corporate Secretary O P E R A T I N G C O M M I T T E E Bank of Hawaii Corporation / Bank of Hawaii (As of Dec. 31, 2021) Bank of Hawaii's Operating Committee is comprised of 18 leaders representing corporate staff functions from various business segments who are responsible for the daily operations of the bank. Thomas W. Butler Executive Vice President, and Executive Director Procurement Guy C. Churchill Senior Executive Vice President, Co-Lead Executive Commercial Banking Group Ryan Field Executive Vice President, Vendor Risk Management D. Jeff Graves Executive Vice President and Chief Technology Officer Jill F.S. Higa Senior Executive Vice President, Branch Banking Torrie M. Inouye Executive Vice President and Chief Data Officer Vance H. Jones Executive Vice President and Chief Information Security Officer Roger J. Khlopin Executive Vice President and Chief Investment Officer Edward C.S. Kim Executive Vice President, Consumer Lending Jennifer Lam Executive Vice President and Treasurer Kimarie Matthews Executive Vice President, Client Services James K.M. Moniz Executive Vice President, Mortgage Banking Lacey Nakaguma Executive Vice President and Chief Audit Executive Craig A. Norris Senior Executive Vice President and Chief Credit Officer Teik Ramsey Executive Vice President, Enterprise Operations Kristine R. Stebbins Executive Vice President and Chief Experience Officer Luke W.T. Yeh Executive Vice President, Enterprise Credit Risk Analytics Dirk K. Yoshizawa Senior Executive Vice President, Co-Lead Executive Commercial Banking Group 2 7 From left: Sharon M. Crofts, Patrick M. McGuirk, Sharlene R. Ginoza-Lee and Taryn L. Salmon Taryn L. Salmon Senior Executive Vice President and Chief Information Officer Dana S. Takushi Senior Executive Vice President, Consumer Banking Group Sharlene R. Ginoza-Lee Executive Vice President and Chief People Officer Bank of Hawaii 2021 Annual Report B O A R D O F D I R E C T O R S Bank of Hawaii Corporation / Bank of Hawaii (As of Dec. 31, 2021) Peter S. Ho Chairman, President and Chief Executive Officer, Bank of Hawaii Corporation and Bank of Hawaii Lead Independent Director Raymond P. Vara President and Chief Executive Officer, Hawai‘i Pacific Health S. Haunani Apoliona Former Trustee, Office of Hawaiian Affairs 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. Michelle E. Hulst Chief Operating Officer, The Trade Desk Kent T. Lucien Retired Vice Chair and Chief Strategy Officer, Bank of Hawaii Corporation and Bank of Hawaii Elliot K. Mills Vice President, Disneyland Resort and Aulani, A Disney® Resort and Spa Alicia E. Moy President and Chief Executive Officer, Hawai‘i Gas Victor K. Nichols Former Chairman, Harland Clarke Holdings Barbara J. Tanabe Owner, Ho‘akea Communications, LLC Dana M. Tokioka Vice President, Atlas Insurance Agency, Inc. Robert W. Wo Owner and Director, C.S. Wo & Sons, Ltd. Director Emerita Mary G.F. Bitterman President and Director, The Bernard Osher Foundation Director Emeritus Robert A. Huret Founding Partner, FTV Capital 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 Corporate Headquarters 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, 2021, 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. For the reasons described above, we caution you against relying on any forward-looking statements. You should not consider any list of such factors to be an exhaustive statement of all of the risks, uncertainties, or potentially inaccurate assumptions that could cause our current expectations or beliefs to change. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by the federal securities laws. Bank of Hawaii Corporation 130 Merchant Street, Honolulu, Hawaii 96813 Annual Meeting The annual meeting of shareholders will be held on Friday, April 29, 2022, at 8:30 a.m. Hawaiian Standard Time. Information to access the virtual meeting is available in the company’s 2021 Proxy Statement. 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 7:00 a.m. and 5:00 p.m. Central Standard Time. Investors and Analysts Seeking Financial Information Janelle Higa Manager, Investor Relations Phone: 1-808-694-8007 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. B A N K O F H AWA I I C O R P O R AT I O N P.O. B OX 2 9 0 0 H O N O L U L U , H AWA I I 9 6 8 4 6 View Bank of Hawaii’s 2021 digital Summary Annual Report, featuring videos of our Chairman, clients, community and employees at www.boh.com/annual-report. 

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