Bank Of Hawaii Corporation · NYSE:BOH
Bank Of Hawaii — Q2 2025 Earnings Presentation
44 slides from Bank Of Hawaii's earnings presentation, Jul 28, 2025
Slide 1: Second quarter 2025 financial report
Bank of Hawai‘i Corporation second quarter 2025 financial report July 28, 2025
Slide 2: Disclosure: forward-looking statements
disclosure forward-looking statements this presentation, and other statements made by the Company in connection with it, may contain forward-looking statements concerning, among other things, forecasts of our financial results and condition, expectations for our operations and business prospects, an
Slide 3: Second quarter 2025 highlights
second quarter 2025 highlights • $1.06 diluted earnings per common share • $47.6 million net income • net interest margin expanded for the fifth consecutive quarter to earnings highlights 2.39% from 2.32% • return on average common equity increased to 12.50% from 11.80% • 1.60% average cost of total
Slide 4: Unique business model
unique business model • attractive core market superior risk adjusted • dominant market position returns over time • fortress risk profile 4
Slide 5: Unmatched brand awareness – total unaided
unmatched brand awareness – total unaided Q. When you think of financial services companies in Hawai‘i, what company comes to mind? Any others? BOH vs three closest competitors 90% 81% 82% 79% 78% 80% 76% 70% 69% 71% 70% 67% 67% 66% 58% 60% 50% 40% 30% 20% 10% 0% 2014 2015 2016 2017 2018 2019 2020 2
Slide 6: Leader in a unique deposit market
leader in a unique deposit market the leader in a unique deposit market with five local competitors holding 96% of the bank deposit market other 4.4% BOH ∆ in market share TBNK 34.1% 2.9% ∆ 1-yr ∆ 5-yr CPF 11.7% 1.9% FHB ASB 32.5% 14.4% 0.6% 0.6% 2024 0.3% 0.2% other other (0.1)%(0.1)% 4.1% BOH 4.5%
Slide 7: Change in NIBD and low yield interest-bearing deposits
∆ NIBD and low yield interest- bearing deposits $ in billions ∆ 3-month rolling average balance of NIBD and low yield interest-bearing deposits $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $- $(0.10) $(0.20) $(0.30) $(0.40) note: low yield interest-bearing deposits include accounts yielding inter
Slide 8: Cost of funds: interest-bearing deposits
cost of funds interest-bearing deposits 3.05% 2.99% 2.91% 2.84% 2.73% 2.66% 2.52% 2.44% 2.46% 2.39% 2.37% 2.30% 2.16% 2.16% 2.11% 1.95% 1.59% 1.54% 1.09% 0.97% 0.69% 0.48% 0.30% 0.20% 0.13% 0.11% 0.07% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 BOH KRX median source: S&P C
Slide 9: Cost of funds: total deposits
cost of funds total deposits 2.34% 2.26% 2.19% 2.19% 2.10% 2.01% 1.85% 1.87% 1.81% 1.74% 1.77% 1.67% 1.60% 1.60% 1.52% 1.40% 1.09% 1.08% 0.75% 0.66% 0.46% 0.31% 0.20% 0.12% 0.08% 0.07% 0.05% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 BOH KRX median source: S&P Capital IQ;
Slide 10: Accretive and predictable balance sheet remix
accretive and predictable balance sheet remix $572 million accretive & 2Q25 loan & 4.0% roll off rate 6.3% roll on rate predictable NII investment expansion cashflow note: loan cashflow refers to cashflow from fixed and adjustable loans; 6.3% roll on rate assumes that the cashflows from maturities/p
Slide 11: Continued accretive NIM reversion
continued accretive NIM reversion $ in billions $22.5 3.20% 3.00% $20.0 2.80% $17.5 2.60% $15.0 2.40% $12.5 2.20% $10.0 2.00% average deposit balance NIM 11
Slide 12: Unemployment experience & forecast
unemployment experience & forecast 20.2% 4.2% 3.1% 3.3% 3.0% 2.8% 2.2% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 Hawai‘i unemployment Hawai‘i unemployment forecast national unemployment source for Hawai‘i unemployment: Uni
Slide 13: Visitor arrivals
visitor arrivals monthly by market, indexed to January 2017 200 180 160 140 120 100 80 60 40 20 - total US visitor Japan other source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT) 13
Slide 14: Revenue per available room
revenue per available room revenue per available room (RevPAR) $340 $310 $280 $250 $220 $190 $160 $130 $100 $70 $40 $10 source: Hawaii Department of Business, Economic Development, and Tourism (DBEDT) 14
Slide 15: Stable real estate prices
stable real estate prices Oahu market indicators – YTD 2025 as of June 2025 single family homes condominiums YTD-25 YTD-24 Δ YTD-24 YTD-25 YTD-24 Δ YTD-24 6.0% median sales $1,150 $1,085 $507 $510 price (000s) -0.5% closed sales 1,334 1,362 2,101 2,234 -2.1% -6.0% 2 days 12 days median days 22 20 41
Slide 16: Credit performance
AN Bank of Hawai'i Corporation | credit performance
Slide 17: Lending philosophy
lending philosophy we lend in our core markets to long-standing relationships Hawai'i 93% U.S. West mainland Pacific 3% 4% note: as of June 30, 2025 17
Slide 18: Consumer portfolio
consumer portfolio 56% of total loans wtd % total % total avg home equity asset type consumer loans WALTV FICO $2.1 residential mortgage 59% 33% 49% 804 home equity 27% 15% 46% 789 $7.9B residential consumer real estate secured 86% 48% 48% 800 mortgage $4.6 automobile automobile 9% 5% n/a 731 $0.7 o
Slide 19: Commercial portfolio
commercial portfolio 44% of total loans CRE $4.0 % total % total asset type comml loans WALTV residential commercial real estate 66% 29% 54% mortgage $6.1B construction 6% 3% 59% commercial real estate secured 72% 32% 55% commercial & industrial 26% 11% n/a leasing 2% 1% n/a construction C&I $0.4 ho
Slide 20: Stable real estate market
stable real estate market Oahu market vacancies and inventory vacancy inventory (sq ft) 1Q25 1Q24 10 yr avg 10 yr CAGR industrial 1.21% 0.76% 1.63% 0.63% office 12.77% 13.56% 12.42% -1.01% retail 5.44% 5.90% 6.08% 0.72% multi-family 3.88% 3.85% 4.59% 0.68% note: 10-year average vacancy and 10-yr CAG
Slide 21: Commercial real estate (CRE)
commercial real estate (CRE) 29% of total loans avg. lodging exposure 5% asset type WALTV ($MMs) retail 5% multi-family 56% 3.2 residential industrial mortgage 55% 2.5 industrial office lodging 52% 14.6 5% 3% retail 53% 4.3 office 59% 1.8 other multi-family 4% other 52% 3.7 7% home total CRE equity
Slide 22: CRE scheduled maturities
CRE scheduled maturities modest near-term maturities 1,800 41.8% 1,600 1,400 1,200 1,000 $millions 800 14.5% 13.7% 600 9.8% 400 8.6% 7.3% 4.3% 200 0 2025 2026 2027 2028 2029 2030 2031+ 22
Slide 23: CRE loan balances by LTV
CRE loan balances by LTV LTV > 80% - $51MM, 1.3% of CRE 62.1% 2,500 2,000 1,500 $millions 25.4% 1,000 500 11.3% 0.7% 0.01% 0.5% 0 ≤ 60% > 60% to 70% > 70% to 80% > 80% to 85% > 85% to 90% > 90% 23
Slide 24: Commercial & industrial
commercial & industrial 11% of total loans avg. exposure asset type % leveraged ($MMs) auto dealers 1.0% AOAO 0% 1.8 renewable real estate investors energy 1.7% 0.8% RE investors 0% 1.2 lodging 0.8% auto dealers residential 19% 5.2 mortgage renewable energy 0% 2.9 educational svcs 0.6% lodging 26% 5
Slide 25: Credit quality
credit quality net charge-offs non-performing assets 0.4 0% 0.3 5% 0.3 0% 0.2 5% $0 0.2 0% 0.13% 0.13% 0.10% 0.11% 0.12% $0 0.1 5% $0 0.07% 0.1 0% $0 0.0 5% $0 0.0 0% $0 2Q24 1Q25 2Q25 2Q24 1Q25 2Q25 $0 NCOs/average loans NPAs/period-end loans plus OREO $0 $0 1.4 0% delinquencies criticized 1.2 0% 1
Slide 26: Financial update
AN Bank of Hawai'i Corporation | financial update
Slide 27: NII and NIM trends
NII and NIM trends $ in millions increasing NII and NIM $142 $141 2.60% 2.60% $136 $133 $130 2.47% 2.47% $125 $126 $124 2.39% $121 $120 2.34% $118 2.32% $116 $114 $115 2.22% 2.18% 2.19% 2.15% 2.13% 2.13% 2.11% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 NII NIM 27
Slide 28: Cashflow repricing
cashflow repricing $ in millions total quarterly impact to NII from cashflows repricing: +$3.2 million maturities/prepayments maturities/prepayments reinvestment opportunities $700 8.0% 6.9% $600 $572 7.0% 6.3% 6.0% 6.0% $500 5.4% 4.8% 5.0% 4.5% $400 4.0% 4.0% $302 $300 3.0% 3.0% 2.4% 2.1% 2.3% $200
Slide 29: Deposit mix shift and repricing
deposit mix shift and repricing $ in millions quarterly NII impact from deposit mix shift and repricing in 2Q25: $(0.5) million QoQ change in average NIBD and low yield interest-bearing deposit balances 1Q23 vs 4Q22 2Q23 vs 1Q23 3Q23 vs 2Q23 4Q23 vs 3Q23 1Q24 vs 4Q23 2Q24 vs 1Q24 3Q24 vs 2Q24 4Q24 v
Slide 30: Trend in cost of deposits
trend in cost of deposits downward beta 5.43% 5.50% 5.50% 5.50% 5.43% 5.16% 84% 4.82% 81% 4.69% 2.52% 2.46% 76% 4.50% 4.50% 2.39% 2.37% 2.30% 70% 2.16% 2.16% 3.82% 1.87% 1.95% 1.81% 1.77% 1.74% 1.67% 1.60% 1.60% 53% 1.54%1.40% 2.35% 1.08% 1.09% 29% 28% 0.75% 25% 0.94% 0.69% 16% 0.46% 0.29% 0.20% 0.3
Slide 31: Time deposits
time deposits time deposit rates continue to decrease time deposit rates 60% time deposit maturity schedule 5.50% 5.50% 5.43% WAR 3.61% 5.00% 4.82% 50% % of total time deposits scheduled to mature 4.50% 4.50% 4.18% 4.20% 4.17% 4.02% 4.00% 40% 3.67% 3.52% 3.00% 30% WAR 3.53% $1.5B 51% 2.00% 20% $0.8B
Slide 32: Optimizing balance sheet
optimizing balance sheet earning asset composition 0.4% 1% 5% 100% 2% 3% 3% 3% 4% 2% 3% 2% 1% 9% 9% 9% 10% 13% 13% 14% 12% 26% 27% 80% 27% 28% 32% 29% 29% 33% 33% 29% 30% 60% 40% 73% 72% 67% 61% 55% 57% 56% 55% 55% 54% 53% 20% 0% 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/3
Slide 33: Rate sensitive earning assets and interest-bearing deposits
rate sensitive earning assets and interest-bearing deposits $ in billions balance sheet well-positioned for a range of rate outcomes rate sensitive earning assets rate sensitive interest-bearing deposits $7.3B $10.1B $5.9 $6.0 $6.0 $5.0 $5.0 $4.0 $4.0 $3.3 $3.1 $3.0 $3.0 $2.2 $2.0 $2.0 $1.4 $1.2 $1.
Slide 34: Noninterest income and expense
noninterest income and expense $ in millions increase in noninterest income and continued discipline in expense management reported noninterest income reported noninterest expense $50 $120 $110.8 $109.2 $110.5 $44.1 $44.8 $42.1 $100 $40 $80 $30 $60 $20 $40 $10 $20 $0 $0 2Q24 1Q25 2Q25 2Q24 1Q25 2Q25
Slide 35: Financial summary
financial summary $ in millions, except per share amounts 2Q 2025 1Q 2025 2Q 2024 ∆ 1Q 2025 ∆ 2Q 2024 net interest income $ 129.7 $ 125.8 $ 114.8 $ 3.9 $ 14.8 noninterest income 44.8 44.1 42.1 0.7 2.7 total revenue 174.5 169.9 156.9 4.6 17.5 noninterest expense 110.8 110.5 109.2 0.3 1.6 operating in
Slide 36: Capital
capital strong capital 15.23% 15.02% 14.97% 14.17% 13.96% 13.93% 13.6% 1 76.5% 5.02% 4.97% 5.23% 11.81% 11.56% 11.58% 5.96% 5.93% 6.17% 60.0% 59.9% 5.06% 5.08% 5.31% 8.37% 8.36% 8.46% 3.37% 3.36% 3.46% 10.00% 10.00% 10.00% 8.00% 8.00% 8.00% 6.50% 6.50% 6.50% 5.00% 5.00% 5.00% 0.00% 0.00% 0.00% 2Q24
Slide 37: Takeaways
takeaways ✔ NII and NIM increased for the fifth consecutive quarter ✔ dominant market position in a unique market ✔ exceptional credit quality ✔ strong liquidity and risk-based capital 37
Slide 38: Q&A
AN Bank of Hawai'i Corporation | Q&A
Slide 39: Appendix
AN Bank of Hawai'i Corporation | appendix
Slide 40: Readily available liquidity
readily available liquidity Bank of Hawai‘i carries substantial liquidity lines and equivalents for both day-to-day operational and liquidity backstop purposes $10.2B cash securities available FHLB $7.8B uninsured/ FRB uncollateralized deposits note: as of June 30, 2025, cash includes fed funds sold
Slide 41: Insured/collateralized deposits
insured/collateralized deposits uninsured/ uncollateralized 37% insured 53% uninsured/ collateralized 10% note: as June 30 2025, numbers may not add up due to rounding 41
Slide 42: CRE supply constraints
CRE supply constraints Oahu market inventory 10-yr CAGR: 0.6% 10-yr CAGR: -1.0% 10-yr CAGR: 0.7% 10-yr CAGR: 0.7% note: 10-yr CAGR for inventory are based on year-end 2014 through 2024 42 source: Colliers (industrial, office, retail) and CoStar (multi-family)
Slide 43: CRE office
CRE office 3% of total loans scheduled maturity 300 LTV distribution 250 200 $ millions LTV > 60% to 70% 150 35.0% 34.3% 34% 100 10.8% 11.2% 50 LTV > 70% to 2.0% 4.6% 2.2% 80% - 8% $377MM 2025 2026 2027 2028 2029 2030 2031+ LTV > 80% 11% highlights • 59% wtd avg LTV LTV ≤ 60% 47% • $1.8MM average ex
Slide 44: CRE multi-family
CRE multi-family 7% of total loans scheduled maturity 700 LTV distribution 64.1% 600 500 $ millions LTV > 60% to 70% 400 34% 300 200 11.8% 8.3% 100 5.4% 4.7% 2.7% 2.9% $989MM - 2025 2026 2027 2028 2029 2030 2031+ LTV > 70% to 80% 13% highlights LTV ≤ 60% 53% • 56% wtd avg LTV • $3.2MM average exposu