BANK OF HAWAII CORP - Quarter Report: 2025 June (Form 10-Q)

Repayments of Long-Term Debt()()Proceeds from Issuance of Preferred Stock Proceeds from Issuance of Common Stock Repurchase of Common Stock()()Cash Dividends Paid on Common Stock()()Cash Dividends Paid on Preferred Stock()()Net Cash Provided by (Used in) Financing Activities ()Net Change in Cash and Cash Equivalents ()Cash and Cash Equivalents at Beginning of Period Cash and Cash Equivalents at End of Period$ $ Supplemental InformationCash Paid for Interest$ $ Cash Paid for Income Taxes Non-Cash Investing and Financing Activities:Transfer from Loans to Foreclosed Real Estate

The accompanying notes are an integral part of the Consolidated Financial Statements (Unaudited).

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Bank of Hawaii Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Unaudited)

Note 1.

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Note 2.

$ $()$ Debt Securities Issued by States and Political Subdivisions () Debt Securities Issued by U.S. Government-Sponsored Enterprises () Debt Securities Issued by Corporations () Collateralized Mortgage Obligations:Residential - Government Agencies or Sponsored Enterprises () Commercial - Government Agencies or Sponsored Enterprises () Commercial - Non-Agency () Total Collateralized Mortgage Obligations () Mortgage-Backed Securities:Residential - Government Agencies or Sponsored Enterprises () Total Mortgage-Backed Securities () Total$ $ $()$ Held-to-Maturity:Debt Securities Issued by the U.S. Treasury and Government Agencies$ $ $()$ Debt Securities Issued by Corporations () Collateralized Mortgage Obligations:Residential - Government Agencies or Sponsored Enterprises () Commercial - Government Agencies or Sponsored Enterprises () Total Collateralized Mortgage Obligations () Mortgage-Backed Securities:Residential - Government Agencies or Sponsored Enterprises () Commercial - Government Agencies or Sponsored Enterprises () Total Mortgage-Backed Securities () Total$ $ $()$

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$ $()$ Debt Securities Issued by States and Political Subdivisions () Debt Securities Issued by U.S. Government-Sponsored Enterprises () Debt Securities Issued by Corporations () Collateralized Mortgage Obligations:Residential - Government Agencies or Sponsored Enterprises () Commercial - Government Agencies or Sponsored Enterprises () Total Collateralized Mortgage Obligations () Mortgage-Backed Securities:Residential - Government Agencies or Sponsored Enterprises () Total Mortgage-Backed Securities () Total$ $ $()$ Held-to-Maturity:Debt Securities Issued by the U.S. Treasury and Government Agencies$ $ $()$ Debt Securities Issued by Corporations () Collateralized Mortgage Obligations:Residential - Government Agencies or Sponsored Enterprises () Commercial - Government Agencies or Sponsored Enterprises () Total Collateralized Mortgage Obligations () Mortgage-Backed Securities:Residential - Government Agencies or Sponsored Enterprises () Commercial - Government Agencies or Sponsored Enterprises () Total Mortgage-Backed Securities () Total$ $ $()$

The Company elected to exclude accrued interest receivable (“AIR”) from the amortized cost basis of debt securities disclosed throughout this footnote. For available-for-sale (“AFS”) debt securities, AIR totaled $ million and $ million as of June 30, 2025 and December 31, 2024, respectively. For held-to-maturity (“HTM”) debt securities, AIR totaled $ million and $ million as of June 30, 2025 and December 31, 2024, respectively.

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$ Due After One Year Through Five Years Due After Five Years Through Ten Years Debt Securities Issued by Government Agencies Collateralized Mortgage Obligations:Residential - Government Agencies or Sponsored Agencies Commercial - Government Agencies or Sponsored Agencies Commercial - Non-Agency Total Collateralized Mortgage Obligations Mortgage-Backed Securities:Residential - Government Agencies or Sponsored Agencies Total Mortgage-Backed Securities Total$ $ Held-to-Maturity:Due in One Year or Less$ $ Due After One Year Through Five Years Due After Five Year Through Ten Years Collateralized Mortgage Obligations:Residential - Government Agencies or Sponsored Agencies Commercial - Government Agencies or Sponsored Agencies Total Collateralized Mortgage Obligations Mortgage-Backed Securities:Residential - Government Agencies or Sponsored Agencies $ $ $ $ %

1.Includes forbearance plans.

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$ %ConsumerResidential Mortgage Automobile Other Six Months Ended June 30, 2025CommercialCommercial Mortgage$ %Commercial and Industrial ConsumerResidential Mortgage Home Equity Automobile Other Three Months Ended June 30, 2024ConsumerHome Equity$ %Automobile Other Six Months Ended June 30, 2024CommercialCommercial and Industrial$ %ConsumerResidential Mortgage Home Equity Automobile Other

1Includes forbearance plans.

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$ $ $ Automobile Other Total Consumer Total Loans and Leases$ $ $ $ Six Months Ended June 30, 2025ConsumerResidential Mortgage$ $ $ $ Automobile Other Total Consumer Total Loans and Leases$ $ $ $ Three Months Ended June 30, 2024CommercialCommercial and Industrial$ $ $ $ Total Commercial ConsumerAutomobile Other Total Consumer Total Loans and Leases$ $ $ $ Six Months Ended June 30, 2024CommercialCommercial and Industrial$ $ $ $ Total Commercial ConsumerAutomobile Other Total Consumer Total Loans and Leases$ $ $ $

1.Includes forbearance plans.

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$ $ $ $ $ Commercial and Industrial Total Commercial ConsumerResidential Mortgage Home Equity Automobile Other Total Consumer Total Loans and Leases$ $ $ $ $ $ As of June 30, 2024CommercialCommercial and Industrial$ $ $ $ $ $ Total Commercial ConsumerResidential Mortgage Home Equity Automobile Other Total Consumer Total Loans and Leases$ $ $ $ $ $

Foreclosure Proceedings

Consumer mortgage loans collateralized by residential real estate property (residential mortgage and home equity) that are in the process of foreclosure totaled $ million and $ million as of June 30, 2025 and December 31, 2024, respectively.

Note 4.

billion as of June 30, 2025 and $ billion as of December 31, 2024. Substantially all of these loans were originated by the Company and sold to third parties on a non-recourse basis with servicing rights retained. These retained servicing rights are recorded as a servicing asset and are initially recorded at fair value (see Note 12 Fair Value of Assets and Liabilities for more information). Changes to the balance of mortgage servicing rights are recorded in noninterest income under Mortgage Banking in the Company’s unaudited consolidated statements of income.

The Company’s mortgage servicing activities include collecting principal, interest, and escrow payments from borrowers; making tax and insurance payments on behalf of borrowers; monitoring delinquencies and executing foreclosure proceedings; and accounting for and remitting principal and interest payments to investors. Servicing income, including late and ancillary fees, was $ million and $ million for the three months ended June 30, 2025 and 2024, respectively, and $ million and $ million for the six months ended June 30, 2025 and 2024, respectively. Servicing income is recorded in noninterest income under Mortgage Banking in the Company’s unaudited consolidated statements of income. The Company’s residential mortgage investor loan servicing portfolio is primarily comprised of fixed rate loans concentrated in Hawai‘i.

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$ $ $ Change in Fair Value Due to Payoffs()()()()Balance at End of Period$ $ $ $ $ $ $ Servicing Rights that Resulted From Asset Transfers Amortization()()()()Balance at End of Period$ $ $ $ Fair Value of Mortgage Servicing Rights Accounted for Under the Amortization MethodBeginning of Period$ $ $ $ End of Period$ $ $ $ % %Weighted-Average Life (in years)Weighted-Average Note Rate % %

Weighted-Average Discount Rate 2

% %

1Represents annualized loan prepayment rate assumption.

2Derived from multiple interest rate scenarios that incorporate a spread to a market yield curve and market volatilities.

)$()Decrease in fair value from 50 bps adverse change()()Discount RateDecrease in fair value from 25 bps adverse change()()Decrease in fair value from 50 bps adverse change()()

This analysis generally cannot be extrapolated because the relationship of a change in one key assumption to the change in the fair value of the Company’s mortgage servicing rights usually is not linear. Also, the effect of changing one key assumption without changing other assumptions is not realistic.

Note 5.

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million and $ million as of June 30, 2025 and December 31, 2024, respectively, and are included in Other Assets in the unaudited consolidated statements of condition.

Unfunded Commitments

2026 2027 2028 2029 Thereafter Total Unfunded Commitments$ $ $ $ Amortization Expense in Provision for Income Taxes Proportional Amortization MethodTax Credits and Other Tax Benefits Recognized$ $ $ $ Amortization Expense in Provision for Income Taxes

There were impairment losses related to LIHTC investments during the six months ended June 30, 2025 and 2024.

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Note 6.

$ $ $ $ December 31, 2024Mortgage-Backed Securities:Residential - Government Agencies or Sponsored Enterprises$ $ $ $ $ $ $ $ $ $ Liabilities:Interest Rate Swap Agreements:Institutional Counterparties Repurchase Agreements:Private Institutions Total Repurchase Agreements$ $ $ $ $ $ December 31, 2024Assets:Interest Rate Swap Agreements:Institutional Counterparties$ $ $ $ $ $ Liabilities:Interest Rate Swap Agreements:Institutional Counterparties Repurchase Agreements:Private Institutions Total Repurchase Agreements$ $ $ $ $ $

million and $ million as of June 30, 2025 and December 31, 2024, respectively.

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Note 7.

$ $ Amounts Reclassified from Accumulated Other Comprehensive Income that Decrease Net Income:Amortization of Unrealized Holding Losses on Held-to-Maturity Securities Net Unrealized Gains on Investment Securities Defined Benefit Plans:Amortization of Net Actuarial Losses Amortization of Prior Service Credit()()()Defined Benefit Plans, Net Other Comprehensive Income$ $ $ Three Months Ended June 30, 2024Net Unrealized Gains on Investment Securities:Net Unrealized Gains Arising During the Period$ $ $ Amounts Reclassified from Accumulated Other Comprehensive Income that Decrease Net Income:Amortization of Unrealized Holding Losses on Held-to-Maturity Securities Net Unrealized Gains on Investment Securities Defined Benefit Plans:Amortization of Net Actuarial Losses Amortization of Prior Service Credit()()()Defined Benefit Plans, Net Other Comprehensive Income$ $ $ Six Months Ended June 30, 2025Net Unrealized Gains on Investment Securities:Net Unrealized Gains Arising During the Period$ $ $ Amounts Reclassified from Accumulated Other Comprehensive Income that Decrease Net Income:Amortization of Unrealized Holding Losses on Held-to-Maturity Securities Net Unrealized Gains on Investment Securities Defined Benefit Plans:Amortization of Net Actuarial Losses Amortization of Prior Service Credit()()()Defined Benefit Plans, Net Other Comprehensive Income$ $ $ Six Months Ended June 30, 2024Net Unrealized Gains on Investment Securities:Net Unrealized Gains Arising During the Period$ $ $ Amounts Reclassified from Accumulated Other Comprehensive Income that Decrease Net Income:Amortization of Unrealized Holding Losses on Held-to-Maturity Securities Net Unrealized Gains on Investment Securities Defined Benefit Plans:Amortization of Net Actuarial Losses Amortization of Prior Service Credit()()()Defined Benefit Plans, Net Other Comprehensive Income$ $ $

The amortization of unrealized holding losses on HTM securities relate to the Company’s reclassification of AFS investment securities to the HTM category and will be amortized over the remaining life of the investment securities as an adjustment of yield.

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)$()$()$()Other Comprehensive Income Before Reclassifications Amounts Reclassified from Accumulated Other Comprehensive Income Total Other Comprehensive Income Balance at End of Period$()$()$()$()Three Months Ended June 30, 2024Balance at Beginning of Period$()$()$()$()Other Comprehensive Income Before Reclassifications Amounts Reclassified from Accumulated Other Comprehensive Income Total Other Comprehensive Income Balance at End of Period$()$()$()$()Six Months Ended June 30, 2025Balance at Beginning of Period$()$()$()$()Other Comprehensive Income Before Reclassifications Amounts Reclassified from Accumulated Other Comprehensive Income Total Other Comprehensive Income Balance at End of Period$()$()$()$()Six Months Ended June 30, 2024Balance at Beginning of Period$()$()$()$()Other Comprehensive Income Before Reclassifications Amounts Reclassified from Accumulated Other Comprehensive Income Total Other Comprehensive Income Balance at End of Period$()$()$()$()

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)$()Interest Income Provision for Income Tax()()Net of TaxAmortization of Defined Benefit Plan Items

Prior Service Credit 2

Net Actuarial Losses 2

()()()()Total Before Tax Provision for Income Tax()()Net of TaxTotal Reclassifications for the Period$()$()Net of TaxDetails about Accumulated Other Comprehensive Income Components

Amount Reclassified from Accumulated Other Comprehensive Income1

Affected Line Item in the Statement Where Net Income Is PresentedSix Months Ended June 30,(dollars in thousands)20252024Amortization of Unrealized Holding Losses on Investment Securities Held-to-Maturity$()$()Interest Income Provision for Income Tax()()Net of TaxAmortization of Defined Benefit Plan Items

Prior Service Credit 2

Net Actuarial Losses 2

()()()()Total Before Tax Provision for Income Tax()()Net of TaxTotal Reclassifications for the Period$()$()Net of Tax

1Amounts in parentheses indicate reductions to net income.

2These accumulated other comprehensive income components are included in the computation of net periodic benefit cost and are included in other noninterest expense in the unaudited consolidated statements of income.

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Note 8.

$ $ $ Denominator:Weighted Average Common Shares Outstanding - BasicDilutive Effect of Equity Based AwardsWeighted Average Common Shares Outstanding - DilutedEarnings Per Common Share:Basic$ $ $ $ Diluted$ $ $ $ Antidilutive Restricted Stock Outstanding

Note 9.

% effective income tax rate. However, the provision for income taxes for the Leasing business unit (included in the Commercial Banking segment) and Auto Leasing portfolio and Pacific Century Life Insurance business unit (both included in the Consumer Banking segment) are assigned their actual effective income tax rates due to the unique relationship that income taxes have with their products. The residual income tax expense or benefit to arrive at the consolidated effective tax rate is included in Treasury and Other.

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branch locations and ATMs throughout Hawai‘i and the West Pacific, a customer service center, and online and mobile banking services.

Commercial Banking

Commercial Banking offers products including commercial and industrial loans, commercial real estate loans, commercial lease financing, auto dealer financing, merchant services, deposit products and cash management services. Commercial lending and lease financing, deposit products, and cash management and merchant services are offered to middle-market and large companies in Hawai‘i and the West Pacific. Commercial Banking also offers lease financing and deposit products to government entities in Hawai‘i. Commercial real estate mortgages focus on investors, developers, and builders predominantly domiciled in Hawai‘i. Commercial Banking includes international banking which services Japanese, Korean, and Chinese commercial businesses owned by a foreign individual or entity, a U.S. corporate subsidiary of a foreign owner, or businesses where management prefers to speak a foreign language.

Treasury and Other

Treasury consists of corporate asset and liability management activities, including interest rate risk management and a foreign currency exchange business. This segment’s assets and liabilities (and related interest income and expense) consist of interest-bearing deposits, investment securities, federal funds sold and purchased, and short and long-term borrowings. The primary sources of noninterest income are from bank-owned life insurance, net gains from the sale of investment securities, and foreign exchange income related to customer-driven currency requests from merchants and island visitors. The net residual effect of the transfer pricing of assets and liabilities is included in Treasury and Other, along with the elimination of intercompany transactions.

Other organizational units (Technology, Operations, Marketing, Human Resources, Finance, Credit and Risk Management, and Corporate and Regulatory Administration) provide a wide range of support to the Company’s other income earning segments. Expenses incurred by these support units are charged to the business segments through an internal cost allocation process. The cost allocation is included in Other Noninterest Expense in the following table.

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$$()$Provision for (Recapture of) Credit Losses()Net Interest Income (Expense) After Provision for Credit Losses()Noninterest IncomeSalaries and BenefitsNet OccupancyOther Noninterest Expense()Noninterest ExpenseIncome (Loss) Before Provision for Income Taxes()Provision (Benefit) for Income Taxes()Net Income (Loss)$$$()$Total Assets as of June 30, 2025$$$$Three Months Ended June 30, 2024 ¹Net Interest Income (Expense)$$$()$Provision for (Recapture of) Credit Losses()Net Interest Income (Expense) After Provision for Credit Losses()Noninterest IncomeSalaries and BenefitsNet OccupancyOther Noninterest Expense()Noninterest ExpenseIncome (Loss) Before Provision for Income Taxes()Provision (Benefit) for Income Taxes()Net Income (Loss)$$$()$Total Assets as of June 30, 2024$$$$

1.Certain prior period information has been reclassified to conform to current presentation.

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$$()$Provision for (Recapture of) Credit Losses()Net Interest Income (Expense) After Provision for Credit Losses()Noninterest IncomeSalaries and BenefitsNet OccupancyOther Noninterest Expense()Noninterest ExpenseIncome (Loss) Before Provision for Income Taxes()Provision (Benefit) for Income Taxes()Net Income (Loss)$$$()$Total Assets as of June 30, 2025$$$$Six Months Ended June 30, 2024 ¹Net Interest Income (Expense)$$$()$Provision for (Recapture of) Credit Losses()Net Interest Income (Expense) After Provision for Credit Losses()Noninterest IncomeSalaries and BenefitsNet OccupancyOther Noninterest Expense()Noninterest ExpenseIncome (Loss) Before Provision for Income Taxes()Provision (Benefit) for Income Taxes()Net Income (Loss)$$$()$Total Assets as of June 30, 2024$$$$

1Certain prior period information has been reclassified to conform to current presentation.

Note 10.

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$()$ $ Derivatives not designated as hedging instrumentsInterest Rate Lock Commitments Forward Commitments () Interest Rate Swap AgreementsReceive Fixed/Pay Variable Swaps () ()Pay Fixed/Receive Variable Swaps

Conversion Rate Swap Agreements 2

NA NA

Makewhole Agreements 3

NA NA

1As of June 30, 2025 and December 31, 2024, the amounts presented in the table above exclude forward starting swaps with notional values of $ million and $ million, respectively, and fair values of $ million and $ million, respectively. These swaps are scheduled to begin between August 2025 and August 2026.

2The conversion rate swap agreements were valued at as further reductions to the conversion rate were not reasonably estimable.

3The makewhole agreements were valued at as the likelihood of a payment required to the buyer was not reasonably estimable.

$ $ $ Designated as Hedging Instruments Derivatives not designated as hedging instrumentsInterest Rate Lock Commitments Forward Commitments Total Derivatives$ $ $ $

1Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the unaudited consolidated statements of condition. Derivatives are recognized on the Company's unaudited consolidated statements of condition at fair value.

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)$ $()$ Recognized on Hedged ItemInterest Income on Investment Securities Available-for-Sale () ()Net Cash SettlementsInterest Income on Investment Securities Available-for-Sale() () Recognized on Interest Rate Swap AgreementsInterest and Fees on Loans and Leases() () Recognized on Hedged ItemInterest and Fees on Loans and Leases () ()Net Cash SettlementsInterest and Fees on Loans and Leases Derivatives not designated as hedging instrumentsInterest Rate Lock CommitmentsMortgage Banking Forward CommitmentsMortgage Banking () Interest Rate Swap AgreementsOther Noninterest Income () Conversion Rate Swap AgreementsInvestment Securities Gains (Losses), Net () Total$ $ $ $ $ $ $()

Loans and Leases 2

()

1These amounts were included in the fair value of closed portfolios of investment securities, AFS used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. As of June 30, 2025 and December 31, 2024, the fair value of the closed portfolios used in these hedging relationships was $ billion and $ billion, respectively.

2These amounts were included in the amortized cost basis of closed portfolios of loans used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. As of June 30, 2025 and December 31, 2024, the amortized cost basis of the closed portfolios used in these hedging relationships was $ billion and $ billion, respectively.

Derivatives Not Designated as Hedging Instruments

Interest Rate Lock Commitments/Forward Commitments

The Company enters into interest rate lock commitments (“IRLCs”) for residential mortgage loans which commit us to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs that relate to the origination of mortgage loans that will be held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose the Company to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. To mitigate this risk, the Company utilizes forward commitments as economic hedges against the potential decreases in the values of the loans held for sale. IRLCs and forward commitments are free-standing derivatives which are carried at fair

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million and $ million as of June 30, 2025 and December 31, 2024, respectively.

Conversion Rate Swap Agreements

As certain sales of Visa Class B restricted shares were completed, the Company entered into conversion rate swap agreements with the buyers that require payment to the buyers in the event Visa further reduces the conversion ratio of Class B into Class A unrestricted common shares. In the event of Visa increasing the conversion ratio, the buyers would be required to make payment to the Company. As of June 30, 2025 and December 31, 2024, the conversion rate swap agreements were valued at (i.e., no contingent liability recorded) as further reductions to the conversion ratio were deemed not reasonably estimable by management.

Makewhole Agreements

In 2024, the Company entered into makewhole agreements with certain buyers of its Visa Class B restricted shares that reduces the payments that would be required pursuant to the conversion rate swap agreements described above, but would require payment to the buyer in the event Visa requires additional legal reserves to settle ongoing litigation. As of June 30, 2025 and December 31, 2024, the makewhole agreements were valued at (i.e., no contingent liability recorded) as the likelihood of the Company being required to make a payment to the buyer is not reasonably estimable by management.

Derivatives Designated as Hedging Instruments

Fair Value Hedges

The Company is exposed to changes in the fair value of fixed-rate assets due to changes in benchmark interest rates. The Company entered into pay-fixed and receive-floating interest rate swaps to manage its exposure to changes in fair value of its AFS investment securities and fixed rate loans. These interest rate swaps are designated as fair value hedges using the portfolio layer method. The Company receives variable-rate interest payments in exchange for making fixed-rate payments over the lives of the contracts without exchanging the notional amounts. The fair value hedges are recorded as components of other assets and other liabilities in the Company’s unaudited consolidated statements of financial condition. The gain or loss on these derivatives, as well as the offsetting loss or gain on the hedged items attributable to the hedged risk are recognized in interest income in the Company’s unaudited consolidated statements of income.

Note 11.

$ Standby Letters of Credit Commercial Letters of Credit Total Credit Commitments$ $

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million secured certain specifically identified standby letters of credit as of June 30, 2025. As of June 30, 2025, the standby and commercial letters of credit had remaining terms ranging from to months.

Contingencies

The Company is subject to various pending and threatened legal proceedings arising out of the normal course of business or operations. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal proceedings using the most recent information available. On a case-by-case basis, reserves are established for those legal claims for which it is probable that a loss will be incurred, and the amount of such loss can be reasonably estimated. Based on information currently available, management believes that the eventual outcome of these claims against the Company will not be materially in excess of such amounts reserved by the Company. However, in the event of unexpected future developments, it is possible that the ultimate resolution of these matters may result in a loss that materially exceeds the reserves established by the Company.

Note 12.

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as reductions to the conversion ratio were not reasonably estimable by management. See Note 10 Derivative Financial Instruments for more information. The fair value of the makewhole agreements represent the amount owed by the Company to the buyer of the Visa Class B shares in the event Visa requires

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as the likelihood of the Company being required to make a payment to the buyer is not reasonably estimable by management.

The Company is exposed to credit risk if borrowers or counterparties fail to perform. The Company seeks to minimize credit risk through credit approvals, limits, monitoring procedures, and collateral requirements. The Company generally enters into transactions with borrowers of high credit quality and counterparties that carry high quality credit ratings.

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$ $ $ Debt Securities Issued by States and Political Subdivisions Debt Securities Issued by U.S. Government-Sponsored Enterprises Debt Securities Issued by Corporations Collateralized Mortgage Obligations Issued by:Residential - Government Agencies or Sponsored Enterprises Commercial - Government Agencies or Sponsored Enterprises Commercial - Non Agency Total Collateralized Mortgage Obligations Mortgage-Backed Securities:Residential - Government Agencies or Sponsored Enterprises Total Investment Securities Available-for-Sale Loans Held for Sale Mortgage Servicing Rights Deferred Compensation Plan Assets

Derivatives 1

Total Assets Measured at Fair Value on a Recurring Basis as of June 30, 2025$ $ $ $ Liabilities:

Derivatives 1

$ $ $ $ Total Liabilities Measured at Fair Value on a Recurring Basis as of June 30, 2025$ $ $ $ December 31, 2024Assets:Investment Securities Available-for-SaleDebt Securities Issued by the U.S. Treasury and Government Agencies$ $ $ $ Debt Securities Issued by States and Political Subdivisions Debt Securities Issued by U.S. Government-Sponsored Enterprises Debt Securities Issued by Corporations Collateralized Mortgage Obligations Issued by:Residential - Government Agencies or Sponsored Enterprises Commercial - Government Agencies or Sponsored Enterprises Total Collateralized Mortgage Obligations Mortgage-Backed Securities Issued by:Residential - Government Agencies or Sponsored Enterprises Total Investment Securities Available-for-Sale Loans Held for Sale Mortgage Servicing Rights Deferred Compensation Plan Assets

Derivatives 1

Total Assets Measured at Fair Value on a Recurring Basis as of December 31, 2024$ $ $ $ Liabilities:

Derivatives 1

$ $ $ $ Total Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2024$ $ $ $

1The fair value of each class of derivatives is shown in Note 10. Derivative Financial Instruments.

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Fair Value Option

$ $ December 31, 2024Loans Held for Sale$ $ $

Changes in the estimated fair value of residential mortgage loans held for sale are reported as a component of mortgage banking income in the Company’s unaudited consolidated statements of income. For the three and six months ended June 30, 2025 and 2024, the net gains or losses from the change in fair value of the Company’s residential mortgage loans held for sale were immaterial.

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

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$ $ $ $ Loans Financial Instruments - LiabilitiesTime Deposits Securities Sold Under Agreements to Repurchase

Other Debt 1

December 31, 2024Financial Instruments – AssetsInvestment Securities Held-to-Maturity$ $ $ $ $ Loans Financial Instruments – LiabilitiesTime Deposits Securities Sold Under Agreements to Repurchase

Other Debt 1

1Excludes finance lease obligations.

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Item 2. Management’s Discussion and Analysis (“MD&A”) of Financial Condition and Results of Operations

The following MD&A is intended to help the reader understand the Company and its operations and is focused on our financial results for the second quarter of 2025, including comparisons of year-to-year performance, trends, and updates from the Company’s most recent 10-K filing. Discussion and analysis of our 2024 fiscal year, as well as the year-to-year comparison between fiscal years 2024 and 2023, are included in Part II, Item 7. “Management's Discussion and Analysis of Financial Condition and Results of Operations,” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 4, 2025.

Forward-Looking Statements

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts and may include statements concerning, among other things, the anticipated economic and business environment in our service area and elsewhere, credit quality and other financial and business matters in future periods, our future results of operations and financial position, our business strategy and plans and our objectives and future operations. 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 also may make forward-looking statements in our other documents filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”). In addition, our senior management may provide forward-looking statements orally to analysts, investors, representatives of the media and others. Given these risks and uncertainties, you should not place undue reliance on any forward-looking statement as a prediction of our actual results.

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) Our business is sensitive to regional business and economic conditions, in particular those of Hawaiʻi, Guam and other Pacific Islands; (2) Our loan portfolio is largely secured by real estate, and a downturn in the real estate market may adversely affect our results of operations; (3) Significant changes to the size, structure, powers and operations of the federal government, changes to U.S. economic policies, and uncertainties regarding the potential for these changes may cause economic disruptions that could, in turn, adversely impact our business, results of operations and financial condition; (4) A sustained period of high inflation could pose a risk to local economies and the financial performance of the Bank; (5) Climate change and the governmental responses to it could have a material adverse impact on the Bank and its customers; (6) Disruptions, instability and failures in the banking industry may negatively impact us; (7) Any reduction in defense spending by the federal government in the state of Hawaiʻi could adversely impact the economy in Hawaiʻi and the Pacific Islands; (8) Changes in interest rates could adversely impact our results of operations and capital; (9) Our allowance for credit losses may prove to be insufficient to absorb losses or appropriately reflect, at any given time, the inherent risk of loss in our loan portfolio; (10) Consumer protection initiatives and court decisions related to the foreclosure process affect our remedies as a creditor; (11) Changes in the capital markets could materially affect the level of assets under management and the demand for our other fee-based services; (12) The Parent’s liquidity is dependent on dividends from the Bank; (13) There can be no assurance that the Parent will continue to declare cash dividends; (14) Fiscal and monetary policy changes may significantly impact our profitability and liquidity; (15) Legislation and regulatory initiatives affecting the financial services industry, including new interpretations, restrictions and requirements, could detrimentally affect the Company’s business; (16) Changes in income tax laws and interpretations, or in accounting standards, could materially affect our financial condition or results of operations; (17) A failure in or breach of our operational systems, information systems, or infrastructure, or those of our third party vendors and other service providers, may result in financial losses, loss of customers, or damage to our reputation; (18) An interruption or breach in security of our information systems or those related to merchants and third party vendors, including as a result of cyber-attacks, could disrupt our business, result in the disclosure or misuse of confidential or proprietary information, damage our reputation, or result in financial losses; (19) Our mortgage banking income may experience significant volatility; (20) Our mortgage loan servicing business may be impacted if we do not meet our obligations, or if servicing standards change; (21) Risks related to representation and warranty provisions may impact our mortgage loan servicing business; (22) Risks relating to residential mortgage loan servicing activities may adversely affect our results; (23) The requirement to record certain assets and liabilities at fair value may adversely affect our financial results (24) Natural disasters and adverse weather in Hawaiʻi and the Pacific Islands may negatively affect real estate property values and our operations (25) Competition may adversely affect our business; (26) Our future performance will depend on our ability to respond timely to technological change; (27) Negative public opinion could damage our reputation and adversely impact our earnings and liquidity (28) We are subject to certain litigation, and our expenses related to this litigation may adversely affect our results; (29) Our performance depends on attracting and retaining key employees and skilled personnel to operate our business effectively; (30) The soundness of other financial institutions may adversely impact our financial condition or results of operations; (31) We have experienced increases in FDIC insurance assessments; and (32) Significant changes to the size, structure, powers and operations of the federal government, changes to U.S. economic policies, and

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uncertainties regarding the potential for these changes may cause economic disruptions that could, in turn, adversely impact our business, results of operations and financial condition.

The risks and uncertainties that could cause actual results to differ materially from our historical experience and our expectations and projections include but are not limited to those described in Item 1A. “Risk Factors,” Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in our most recent Annual Report on Form 10-K and in subsequent SEC filings, including our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. 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.

Investor Announcements

Investors and others should note that the Company intends to announce financial and other information to the Company’s investors using the Company’s investor relations website at https://ir.boh.com, social media channels, press releases, and public conference calls and webcasts, all for purposes of complying with the Company’s disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, as information is updated, and new information is posted.

Critical Accounting Estimates

Our Unaudited Consolidated Financial Statements were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and follow general practices within the industries in which we operate. Application of GAAP requires us to make estimates that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Most accounting estimates are not considered by management to be critical accounting estimates. Critical accounting estimates are those estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. In determining which accounting estimates are critical accounting estimates, we consider, among other things, whether the application of GAAP requires management to make difficult, subjective, and complex judgments about matters that are inherently uncertain and whether it is likely that materially different results would be reported under different conditions or different assumptions. The accounting estimates that we believe are most critical in preparing our Consolidated Financial Statements are presented in the section titled “Critical Accounting Estimates” in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes in the Company’s application of critical accounting estimates since December 31, 2024.

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Overview

We are a regional financial services company serving businesses, consumers, and governments in Hawai‘i, Guam, and other Pacific Islands. Our principal operating subsidiary, the Bank, was founded in 1897.

Our business strategy is to use our unique market knowledge, prudent management discipline and brand strength to deliver exceptional value to our stakeholders. Our business plan is balanced between growth and risk management while maintaining flexibility to adjust to economic changes. We will continue to focus on providing customers with best-in-class service and an innovative mix of products and services. We will also remain focused on delivering strong financial results while maintaining prudent risk and capital management strategies and affirming our commitment to support our local communities.

Hawai‘i Economy

Although Hawai‘i’s economy began the year with modest gains in tourism and labor growth, as of June 30, 2025 we believe that expansive changes to federal policy may negatively impact our local economy. The impact of actual and threatened US tariffs, large-scale federal layoffs, and volatile immigration and fiscal policies have weakened consumer confidence and are expected to create headwinds in the Hawai‘i tourism sector. Construction remains a relative bright spot as of June 30, 2025, but tariffs on imported materials and labor are expected to cause construction employment to recede in the coming years. Hawai‘i’s unemployment rate was 2.8% in June 2025, which was below the U.S. unemployment rate of 4.1%.

For the first six months of 2025, the median price of single-family home and condominium sales on Oahu increased by 6.0% and decreased by 0.5%, respectively, compared to the same period in 2024. The volume of single-family homes sales on Oahu decreased 2.1% and condominium sales decreased 6.0% compared to the same period in 2024. Inventory of single-family homes and condominiums on Oahu was 3.7 months and 7.0 months, respectively, for the second quarter of 2025.

Earnings Summary

Net income for the second quarter of 2025 was $47.6 million, an increase of $13.6 million or 40% compared to the same period in 2024. Diluted earnings per common share was $1.06 for the second quarter of 2025, an increase of $0.25 or 31% compared to the same period in 2024.

•The return on average common equity for the second quarter of 2025 was 12.50% compared with 10.41% in the same quarter of 2024.

•Net interest income for the second quarter of 2025 was $129.7 million, an increase of 13% compared to the same period last year.

•Net interest margin was 2.39% in the second quarter of 2025, an increase of 24 basis points from the same period in 2024.

•The provision for credit losses for the second quarter of 2025 and 2024 was $3.3 million and $2.4 million, respectively.

•Noninterest income was $44.8 million in the second quarter of 2025, an increase of 6% compared to the same period last year.

•Noninterest expense was $110.8 million in the second quarter of 2025, an increase of 1% compared to the same period last year.

•The effective tax rate for the second quarter of 2025 was 21.19% compared with 24.77% compared to the same period last year.

The balance sheet remained stable during the second quarter of 2025. We experienced a modest decline in loans, while deposits slightly increased.

•Total assets were $23.7 billion as of June 30, 2025, an increase of 0.5% from December 31, 2024.

•Total loans and leases were $14.0 billion as of June 30, 2025, a decrease of 0.52% from December 31, 2024.

•The allowance for credit losses on loans and leases was $148.5 million as of June 30, 2025, flat from December 31, 2024. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.06% at the end of the quarter, flat from December 31, 2024.

•Net loan and lease charge-offs during the second quarter of 2025 were $2.6 million or 7 basis points annualized of total average loans and leases outstanding. Net loan and lease charge-offs for the second quarter of 2025 were comprised of charge-offs of $4.0 million partially offset by recoveries of $1.4 million. Compared to the same quarter of 2024, net loan and lease charge-offs decreased by $0.8 million or 3 basis points annualized on total average loans and leases outstanding.

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•Total non-performing assets (“NPAs”) were $17.9 million as of June 30, 2025, down $1.4 million from December 31, 2024. NPAs were 13 basis points of total loans and leases and foreclosed real estate at the end of the quarter, down 1 basis point from December 31, 2024.

•The investment securities portfolio was $7.6 billion as of June 30, 2025, an increase of 3.3% from December 31, 2024. The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises. Floating rate securities represented 18.8% of the investment securities portfolio as of June 30, 2025, compared to 16.5% as of December 31, 2024.

•Total deposits were $20.8 billion as of June 30, 2025 and $20.6 billion as of December 31, 2024.

•Total shareholders’ equity was $1.7 billion as of June 30, 2025, an increase of 4.5% from December 31, 2024.

•No shares of common stock were repurchased under the share repurchase program in the second quarter of 2025. Total remaining buyback authority under the share repurchase program was $126.0 million at June 30, 2025.

•The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on September 15, 2025 to shareholders of record at the close of business on August 29, 2025.

•On July 3, 2025, the Company announced that the Board of Directors declared quarterly dividend payments of $10.94 per share, equivalent to $0.2735 per depositary share, on its preferred stock, Series A, and $20.00 per share, equivalent to $0.5000 per depositary share, on its preferred stock, Series B. The depositary shares representing the Series A Preferred Stock and Series B Preferred Stock are traded on the NYSE under the symbol “BOH.PRA” and “BOH.PRB”, respectively. The dividends on the Series A Preferred Stock and Series B Preferred Stock will be payable on August 1, 2025 to shareholders of record of the preferred stock as of the close of business on July 17, 2025.

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Analysis of Unaudited Statements of Income

Average balances, related income and expenses, and resulting yields and rates are presented in Table 1. An analysis of the change in net interest income, on a taxable-equivalent basis, is presented in Table 2.


Average Balances and Interest Rates - Taxable-Equivalent Basis ¹																					Table 1
	Three Months Ended June 30, 2025						Three Months Ended June 30, 2024						Six Months Ended June 30, 2025						Six Months Ended June 30, 2024
(dollars in millions)	Average Balance		Income/Expense 2		Yield/Rate		Average Balance		Income/Expense 2		Yield/Rate		Average Balance		Income/Expense 2		Yield/Rate		Average Balance		Income/Expense 2		Yield/Rate
Earning Assets
Cash and Cash Equivalents	$	353.7	$	3.8	4.27	%	$	460.1	6.1		5.28	%	$	426.4	$	9.3	4.33	%	$	460.4	$	12.3	5.28	%
Investment Securities
Available-for-Sale
Taxable	2,987.2		26.7		3.58		2,308.3		21.5		3.73		2,889.3		50.8		3.53		2,344.3		43.2		3.69
Non-Taxable	27.4		0.4		5.85		1.6		0.0		2.01		24.3		0.7		5.77		1.7		0.0		2.00
Held-to-Maturity
Taxable	4,462.1		19.7		1.77		4,837.2		21.4		1.77		4,505.1		39.8		1.77		4,882.0		43.4		1.78
Non-Taxable	34.0		0.2		2.10		34.6		0.2		2.10		34.1		0.4		2.10		34.7		0.4		2.10
Total Investment Securities	7,510.7		47.0		2.50		7,181.7		43.1		2.40		7,452.8		91.7		2.47		7,262.7		87.0		2.40
Loans Held for Sale	2.2		0.0		5.66		1.4		0.0		6.30		2.2		0.1		5.87		1.8		0.1		6.22
Loans and Leases 3
Commercial Mortgage	4,025.2		53.7		5.35		3,723.6		51.6		5.57		4,020.3		106.2		5.33		3,720.1		102.1		5.52
Commercial and Industrial	1,668.1		21.1		5.07		1,692.7		22.4		5.32		1,685.8		42.3		5.06		1,678.0		44.5		5.33
Construction	366.2		6.7		7.30		321.3		6.3		7.85		352.4		12.7		7.26		314.6		11.8		7.57
Commercial Lease Financing	93.4		1.0		4.07		59.3		0.3		2.28		92.3		1.8		3.95		58.8		0.6		2.08
Residential Mortgage	4,626.5		45.6		3.95		4,595.2		45.6		3.97		4,621.6		90.5		3.91		4,622.6		90.7		3.92
Home Equity	2,141.5		23.3		4.37		2,231.7		21.8		3.92		2,147.9		45.8		4.30		2,240.9		42.9		3.85
Automobile	730.1		9.4		5.19		813.5		9.1		4.52		741.3		18.8		5.10		822.2		18.0		4.41
Other	398.0		7.5		7.53		394.5		6.8		6.95		394.0		14.6		7.47		393.1		13.3		6.80
Total Loans and Leases	14,049.0		168.3		4.80		13,831.8		163.9		4.76		14,055.6		332.7		4.76		13,850.3		323.9		4.70
Other	65.2		1.1		6.72		62.5		1.2		7.18		65.2		2.1		6.70		62.4		2.0		6.70
Total Earning Assets	21,980.8		220.2		4.01		21,537.5		214.3		3.99		22,002.2		435.9		3.98		21,637.6		425.3		3.94
Non-Earning Assets	1,616.2						1,607.6						1,615.2						1,575.7
Total Assets	$	23,597.0					$	23,145.1					$	23,617.4					$	23,213.3

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	3,705.5	$	7.6	0.82	%	$	3,788.5	$	8.8	0.94	%	$	3,739.2	$	14.7	0.79	%	$	3,776.3	$	16.5	0.88	%
Savings	8,578.6		48.1		2.25		8,259.2		52.0		2.53		8,561.7		95.2		2.24		8,195.3		101.4		2.49
Time	3,050.0		26.8		3.52		2,935.9		30.7		4.20		3,043.7		54.3		3.60		3,008.5		62.7		4.19
Total Interest-Bearing Deposits	15,334.1		82.5		2.16		14,983.6		91.5		2.46		15,344.6		164.2		2.16		14,980.1		180.6		2.42
Securities Sold Under Agreements to Repurchase	50.0		0.5		3.88		121.9		1.2		3.83		63.3		1.2		3.88		136.2		2.6		3.83
Other Debt	558.3		5.9		4.23		563.4		6.0		4.26		568.2		11.9		4.23		561.8		11.9		4.25
Total Interest-Bearing Liabilities	15,942.4		88.9		2.24		15,668.9		98.7		2.53		15,976.1		177.3		2.24		15,678.1		195.1		2.50
Net Interest Income			$	131.3					$	115.6					$	258.6					$	230.2
Interest Rate Spread					1.77						1.46						1.74						1.44
Net Interest Margin					2.39						2.15						2.36						2.13
Noninterest-Bearing Demand Deposits	5,365.6						5,374.8						5,340.1						5,470.9
Other Liabilities	584.6						662.9						611.1						637.0
Shareholders' Equity	1,704.4						1,438.5						1,690.1						1,427.3
Total Liabilities and Shareholders' Equity	$	23,597.0					$	23,145.1					$	23,617.4					$	23,213.3

1Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.

2Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1.6 million and $3.1 million for the three and six months ended June 30, 2025, respectively, and $0.8 million and $1.5 million for the three and six months ended June 30, 2024, respectively.

3Non-performing loans and leases are included in the respective average loan and lease balances.

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Analysis of Change in Net Interest Income - Taxable-Equivalent Basis											Table 2
	Three Months Ended June 30, 2025						Six Months Ended June 30, 2025
	Compared to June 30, 2024						Compared to June 30, 2024
(dollars in millions)	Volume 1		Rate 1		Total		Volume 1		Rate 1		Total
Change in Interest Income:
Cash and Cash Equivalents	$	(1.3)	$	(1.0)	$	(2.3)	$	(0.9)	$	(2.1)	$	(3.0)
Investment Securities
Available-for-Sale
Taxable	6.1		(0.9)		5.2		9.6		(2.0)		7.6
Non-Taxable	0.4		0.0		0.4		0.6		0.1		0.7
Held-to-Maturity
Taxable	(1.7)		(0.1)		(1.8)		(3.3)		(0.3)		(3.6)
Non-Taxable	0.0		—		0.0		0.0		—		0.0
Total Investment Securities	4.8		(1.0)		3.8		6.9		(2.2)		4.7
Loans Held for Sale	0.0		0.0		0.0		0.0		0.0		0.0
Loans and Leases
Commercial Mortgage	4.2		(2.1)		2.1		7.8		(3.7)		4.1
Commercial and Industrial	(0.3)		(1.0)		(1.3)		0.2		(2.4)		(2.2)
Construction	0.9		(0.5)		0.4		1.4		(0.5)		0.9
Commercial Lease Financing	0.5		0.2		0.7		0.9		0.3		1.2
Residential Mortgage	0.3		(0.3)		0.0		0.0		(0.2)		(0.2)
Home Equity	(0.9)		2.4		1.5		(1.9)		4.8		2.9
Automobile	(1.0)		1.3		0.3		(1.8)		2.6		0.8
Other	0.1		0.6		0.7		0.0		1.3		1.3
Total Loans and Leases	3.8		0.6		4.4		6.6		2.2		8.8
Other	0.2		(0.3)		(0.1)		0.1		0.0		0.1
Total Change in Interest Income	7.5		(1.7)		5.8		12.7		(2.1)		10.6

Change in Interest Expense:
Interest-Bearing Deposits
Demand	(0.2)		(1.0)		(1.2)		(0.2)		(1.6)		(1.8)
Savings	2.0		(5.9)		(3.9)		4.3		(10.5)		(6.2)
Time	1.2		(5.1)		(3.9)		0.7		(9.1)		(8.4)
Total Interest-Bearing Deposits	3.0		(12.0)		(9.0)		4.8		(21.2)		(16.4)
Securities Sold Under Agreements to Repurchase	(0.7)		0.0		(0.7)		(1.4)		0.0		(1.4)
Other Debt	0.0		(0.1)		(0.1)		0.1		(0.1)		0.0
Total Change in Interest Expense	2.3		(12.1)		(9.8)		3.5		(21.3)		(17.8)

Change in Net Interest Income	$	5.2	$	10.4	$	15.6	$	9.2	$	19.2	$	28.4

1The change in interest income or expense due to both rate and volume has been allocated between the factors in proportion to the relationship of the absolute dollar amounts of the change in each.

Net Interest Income

Net interest income is affected by the size and mix of our balance sheet components as well as the spread between interest earned on assets and interest paid on liabilities. Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.

The average balance of our earning assets for the three and six months ended June 30, 2025 increased by $443.3 million or 2% and $364.6 million or 2%, respectively, compared to the same periods in 2024. These increases were due to increases in the average balances of available-for-sale investment securities and commercial mortgage loans. As compared to the same periods last year, yields on our investment securities portfolio increased by 10 and 7 basis points during the three and six months ended

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June 30, 2025, respectively, primarily due to the amortization of lower yielding investments being reinvested into new investments at higher current interest rates. This increase was partially offset by lower income earned from interest rate swaps that hedge a portion of our available-for-sale (“AFS”) securities portfolio. Yields on our loan and lease portfolio increased by 4 and 6 basis points during the three and six months ended June 30, 2025, respectively, primarily due to higher rates on home equity lines and residential mortgages originated partially offset by the impact of interest rate swaps that hedge our residential mortgage portfolio.

The average balance of our interest-bearing liabilities for the three and six months ended June 30, 2025 increased by $273.5 million or 2% and $364.5 million or 2%, respectively, compared to the same periods in 2024 primarily due to an increase in savings deposits. As compared to the same periods last year, the cost of our interest-bearing liabilities decreased by 29 and 26 basis points during the three and six months ended June 30, 2025, respectively, primarily due to a decrease in the prevailing interest rate environment, which was driven by 100 basis points of interest rate cuts by the Federal Open Market Committee in late 2024.

Noninterest Income

Table 3 presents the components of noninterest income.


Noninterest Income															Table 3
	Three Months Ended June 30,								Six Months Ended June 30,
(dollars in thousands)	2025		2024		Dollar Change		Percent Change		2025		2024		Dollar Change		Percent Change
Fees, Exchange, and Other Service Charges	$	14,383	$	13,769	$	614	4.5	%	$	28,820	$	27,892	$	928	3.3	%
Trust and Asset Management	12,097		12,223		(126)		(1.0)		23,838		23,412		426		1.8
Service Charges on Deposit Accounts	8,119		7,730		389		5.0		16,378		15,677		701		4.5
Bank-Owned Life Insurance	3,714		3,396		318		9.4		7,325		6,752		573		8.5
Annuity and Insurance	1,437		1,583		(146)		(9.2)		2,992		2,629		363		13.8
Mortgage Banking	849		1,028		(179)		(17.4)		1,837		1,979		(142)		(7.2)
Investment Securities Losses, Net	(1,126)		(1,601)		475		(29.7)		(2,733)		(3,098)		365		(11.8)
Other Income	5,322		3,959		1,363		34.4		10,396		9,129		1,267		13.9
Total Noninterest Income	$	44,795	$	42,087	$	2,708	6.4	%	$	88,853	$	84,372	$	4,481	5.3	%

Other income increased by $1.4 million or 34.4% in the second quarter of 2025 and $1.3 million or 13.9% for the first six months of 2025 compared to the same periods last year. These increases were primarily due to a gain on sale of an other real estate owned (“OREO”) property and the recovery of a previously charge-off bank-owned life insurance policy.

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Noninterest Expense

Table 4 presents the components of noninterest expense.


Noninterest Expense															Table 4
	Three Months Ended June 30,								Six Months Ended June 30,
(dollars in thousands)	2025		2024		Dollar Change		Percent Change		2025		2024		Dollar Change		Percent Change
Salaries	$	39,644	$	38,662	$	982	2.5	%	$	77,886	$	76,693	$	1,193	1.6	%
Incentive Compensation	5,067		3,109		1,958		63.0		10,640		6,199		4,441		71.6
Retirement and Other Benefits	3,894		3,961		(67)		(1.7)		8,955		8,260		695		8.4
Share-Based Compensation	3,668		3,296		372		11.3		7,169		7,095		74		1.0
Medical, Dental, and Life Insurance	3,610		3,211		399		12.4		8,147		6,423		1,724		26.8
Payroll Taxes	2,998		3,070		(72)		(2.3)		7,764		7,800		(36)		(0.5)
Separation Expense	1,374		785		589		75.0		1,455		1,267		188		14.8
Commission Expense	1,053		939		114		12.1		2,176		1,511		665		44.0
Total Salaries and Benefits	61,308		57,033		4,275		7.5		124,192		115,248		8,944		7.8
Net Occupancy	10,499		10,559		(60)		(0.6)		21,058		21,015		43		0.2
Net Equipment	9,977		10,355		(378)		(3.7)		20,169		20,458		(289)		(1.4)
Data Processing	5,456		4,745		711		15.0		10,723		9,515		1,208		12.7
Professional Fees	4,263		4,929		(666)		(13.5)		8,527		9,606		(1,079)		(11.2)
FDIC Insurance	3,640		7,170		(3,530)		(49.2)		5,282		10,784		(5,502)		(51.0)
Other Expense:
Advertising	1,876		1,701		175		10.3		4,039		3,634		405		11.1
Merchant Transaction and Card Processing Fees	1,685		1,645		40		2.4		3,426		3,310		116		3.5
Delivery and Postage Services	1,665		1,749		(84)		(4.8)		3,345		3,381		(36)		(1.1)
Mileage Program Travel	1,044		1,030		14		1.4		2,105		2,133		(28)		(1.3)
Broker's Charges	651		446		205		46.0		1,250		811		439		54.1
Other	8,719		7,864		855		10.9		17,126		15,190		1,936		12.7
Total Other Expense	15,640		14,435		1,205		8.3		31,291		28,459		2,832		10.0
Total Noninterest Expense	$	110,783	$	109,226	$	7,037	6.4	%	$	221,242	$	215,085	$	17,933	8.3	%

Total salaries and benefits expense increased by $4.3 million or 7.5% in the second quarter of 2025, primarily due to an increase in incentive compensation, base salaries, and separation expense. Total salaries and benefits expense increased by $8.9 million or 7.8% for the first six months ended June 30, 2025, compared to the same period in 2024 primarily due to an increase in incentive compensation, medical, dental, and life insurance, and base salaries.

Data processing fees increased by $0.7 million or 15.0% in the second quarter of 2025 and by $1.2 million or 12.7% for the first six months of 2025 compared to the same periods in 2024, primarily due to an increase in data service fees, the commencement of amortization of our online banking platform, and an increase in debit card transactions.

Professional fees decreased by $0.7 million or 13.5% in the second quarter of 2025 and by $1.1 million or 11.2% for the first six months of 2025 compared to the same periods in 2024, primarily due to a decrease in consulting fees and reduction in outsourcing of various support functions.

FDIC insurance expense decreased by $3.5 million or 49.2% in the second quarter of 2025 compared to the same period in 2024, primarily due to a FDIC special assessment charge in the second quarter of 2024. For the first six months of 2025, FDIC insurance expense decreased by $5.5 million or 51.0% compared to the same period in 2024, primarily due to a partial recovery of the FDIC special assessment in the first quarter of 2025.

Total other expense increased by $1.2 million or 8.3% in the second quarter of 2025 and by $2.8 million or 10.0% for the first six months ended June 30, 2025, compared to the same periods in 2024, primarily due to an increase in operational losses, advertising expenses, and broker's charges.

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Provision for Income Taxes

Table 5 presents our provision for income taxes and effective tax rates.


Provision for Income Taxes and Effective Tax Rates										Table 5
	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2025			2024			2025			2024
Provision for Income Taxes	$	12,808		$	11,224		$	24,979		$	23,197
Effective Tax Rates	21.2		%	24.8		%	21.4		%	24.8		%

The provision for income taxes was $12.8 million in the second quarter of 2025, an increase of $1.6 million compared to the same period in 2024. The effective tax rate for the second quarter of 2025 was 21.2%, a decrease from 24.8% for the same period in 2024. The lower effective tax rate in the second quarter of 2025 compared to the same period in 2024 was primarily due to a decrease in tax expense from discrete items and an increase in tax-exempt investment income.

The provision for income taxes was $25.0 million in the first six months of 2025, an increase of $1.8 million compared to the same period in 2024. The effective tax rate for the first six months of 2025 was 21.4%, a decrease from 24.8% for the same period in 2024. The lower effective tax rate for the first six months of 2025 compared to the same period in 2024 was due to a decrease in tax expense from discrete items and an increase in tax-exempt investment income.

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Analysis of Unaudited Statements of Condition

Investment Securities

The carrying value of our investment securities portfolio was $7.6 billion and $7.3 billion as of June 30, 2025 and December 31, 2024, respectively. The increase was primarily due to the purchase of $517.1 million in available-for-sale investment securities during the six months ended June 30, 2025, of which $259.1 million were floating rate securities. The increase was partially offset by the amortization of existing securities. Floating rate securities represented 18.8% of the investment securities portfolio as of June 30, 2025, compared to 16.5% as of December 31, 2024.

We continually evaluate our investment securities portfolio in conjunction with our response to established asset/liability management objectives, changing market conditions that could affect profitability, and the level of interest rate risk to which we are exposed. These evaluations may cause us to change the level of funds we deploy into investment securities, change the composition of our investment securities portfolio, adjust hedge positions, and change the proportion of investments made into the AFS and held-to-maturity (“HTM”) investment categories.

Mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac represent the largest concentration in our portfolio. As of June 30, 2025, the issuers of these securities carry credit ratings equivalent to those of the U.S. Government, reflecting the explicit and/or implicit guarantees provided.

Net unrealized losses in our AFS and HTM investment securities were $0.9 billion as of June 30, 2025 and $1.1 billion as of December 31, 2024. See Note 2 Investment Securities to the unaudited Consolidated Financial Statements for more information.

Loans and Leases

Table 6 presents the composition of our loan and lease portfolio by major categories.


Loan and Lease Portfolio Balances							Table 6
(dollars in thousands)	June 30, 2025		December 31, 2024		Dollar Change		Percent Change
Commercial
Commercial Mortgage	$	4,038,956	$	4,020,622	$	18,334	0.5	%
Commercial and Industrial	1,597,560		1,705,133		(107,573)		(6.3)
Construction	374,768		308,898		65,870		21.3
Lease Financing	92,842		90,756		2,086		2.3
Total Commercial	6,104,126		6,125,409		(21,283)		(0.3)
Consumer
Residential Mortgage	4,637,014		4,628,283		8,731		0.2
Home Equity	2,139,025		2,165,514		(26,489)		(1.2)
Automobile	715,688		764,146		(48,458)		(6.3)
Other	406,325		392,628		13,697		3.5
Total Consumer	7,898,052		7,950,571		(52,519)		(0.7)
Total Loans and Leases	$	14,002,178	$	14,075,980	$	(73,802)	(0.5)	%

Total loans and leases as of June 30, 2025 decreased by $73.8 million or 0.5% from December 31, 2024 due to reductions in both our commercial and consumer loans.

Commercial loans and leases as of June 30, 2025 decreased by $21.3 million or 0.3% from December 31, 2024, primarily due to a decline in commercial and industrial loans, which decreased by $107.6 million or 6.3% largely as a result of paydowns. This was partially offset by construction loans, which increased by $65.9 million or 21.3%, primarily due to increased construction activity during the quarter. Consumer loans and leases as of June 30, 2025 decreased by $52.5 million or 0.7% from December 31, 2024, primarily due to paydowns in our home equity portfolio and a slowdown in production for our automobile loans.

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Table 6a presents an additional breakdown of the Company’s commercial mortgage portfolio.


Commercial Mortgage Breakdown											Table 6a
	June 30, 2025						December 31, 2024
(dollars in thousands)	Amount		Percent of Total		% Owner Occupied		Amount		Percent of Total		% Owner Occupied
Multi-family	$	989,140	25	%	—	%	$	1,025,247	25	%	—	%
Industrial	740,203		18		40		724,645		18		42
Lodging	722,915		18		—		676,350		17		—
Retail	700,139		17		3		704,780		18		3
Office	376,537		9		20		371,474		9		20
Other 1	510,022		13		26		518,126		13		26
Total Commercial Mortgage	$	4,038,956	100	%	13	%	$	4,020,622	100	%	13	%

1.Amount includes unamortized loan origination fees.

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Table 7 presents the composition of our loan and lease portfolio by geographic area and by major categories.


Geographic Distribution of Loan and Lease Portfolio													Table 7
(dollars in thousands)	Hawai‘i			U.S. Mainland 1			Guam			Other Pacific Islands			Total
June 30, 2025
Commercial
Commercial Mortgage	$	3,607,929		$	255,719		$	174,883		$	425		$	4,038,956
Commercial and Industrial	1,381,481			137,052			68,422			10,605			1,597,560
Construction	374,768			—			—			—			374,768
Lease Financing	92,499			—			343			—			92,842
Total Commercial	5,456,677			392,771			243,648			11,030			6,104,126
Consumer
Residential Mortgage	4,560,931			5,429			70,361			293			4,637,014
Home Equity	2,094,326			38			44,661			—			2,139,025
Automobile	568,571			—			114,921			32,196			715,688
Other	350,262			—			53,706			2,357			406,325
Total Consumer	7,574,090			5,467			283,649			34,846			7,898,052
Total Loans and Leases	$	13,030,767		$	398,238		$	527,297		$	45,876		$	14,002,178
Percentage of Total Loans and Leases	93		%	3		%	4		%	0		%	100		%

December 31, 2024
Commercial
Commercial Mortgage	$	3,534,658		$	297,758		$	187,777		$	429		$	4,020,622
Commercial and Industrial	1,493,386			139,968			62,824			8,955			1,705,133
Construction	308,898			—			—			—			308,898
Lease Financing	90,260			—			496			—			90,756
Total Commercial	5,427,202			437,726			251,097			9,384			6,125,409
Consumer
Residential Mortgage	4,553,553			5,469			68,932			329			4,628,283
Home Equity	2,119,548			41			45,925			—			2,165,514
Automobile	601,359			—			125,331			37,456			764,146
Other	336,718			—			47,279			8,631			392,628
Total Consumer	7,611,178			5,510			287,467			46,416			7,950,571
Total Loans and Leases	$	13,038,380		$	443,236		$	538,564		$	55,800		$	14,075,980
Percentage of Total Loans and Leases	93		%	3		%	4		%	0		%	100		%

1For secured loans and leases, classification is made based on where the collateral is located. For unsecured loans and leases, classification is made based on the location where the majority of the borrower’s business operations are conducted.

Our commercial and consumer lending activities are concentrated primarily in Hawai‘i and the West Pacific. Our commercial loan and lease portfolio to borrowers based on the U.S. Mainland includes participation in shared national credits for customers whose operations and assets extend beyond Hawai‘i.

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Other Assets

Table 8 presents the major components of other assets.


Other Assets							Table 8
(dollars in thousands)	June 30, 2025		December 31, 2024		Dollar Change		Percent Change
Low-Income Housing and Other Equity Investments	$	224,381	$	233,202	$	(8,821)	(3.8)	%
Deferred Tax Assets and Tax Receivable	164,062		172,499		(8,437)		(4.9)
Derivative Financial Instruments	108,223		161,473		(53,250)		(33.0)
Federal Home Loan Bank of Des Moines Stock	34,750		34,750		—		—
Federal Reserve Bank Stock	30,541		30,339		202		0.7
Prepaid Expenses	21,874		22,623		(749)		(3.3)
Deferred Compensation Plan Assets	14,569		18,155		(3,586)		(19.8)
Accounts Receivable	12,641		16,981		(4,340)		(25.6)
Foreclosed Real Estate	342		2,657		(2,315)		(87.1)
Other	40,401		44,279		(3,878)		(8.8)
Total Other Assets	$	651,784	$	736,958	$	(85,174)	(11.6)	%

Derivative financial instruments decreased by $53.3 million or 33.0% due to changes in interest rates from December 2024 to June 2025 decreasing the valuation of customer swaps and fair value hedges. Accounts receivable decreased by $4.3 million due to timing of payments and changes in accruals. Deferred compensation plan assets decreased by $3.6 million primarily due to distributions from the executive deferred compensation plan in 2025.

Deposits

Table 9 presents the composition of our deposits by major customer categories.


Deposits							Table 9
(dollars in thousands)	June 30, 2025		December 31, 2024		Dollar Change		Percent Change
Consumer	$	10,429,271	$	10,397,777	$	31,494	0.3	%
Commercial	8,243,898		8,299,590		(55,692)		(0.7)
Public and Other	2,125,745		1,935,670		190,075		9.8
Total Deposits	$	20,798,914	$	20,633,037	$	165,877	0.8	%

Total deposits were $20.8 billion as of June 30, 2025, an increase of $165.9 million or 0.8% from December 31, 2024. Consumer deposits increased by $31.5 million due to increases of $144.4 million in savings deposits and $29.6 million in non-interest bearing deposits, partially offset by a decrease of $142.5 million in interest-bearing deposits. Commercial deposits decreased by $55.7 million primarily from decreases of $97.6 million in core deposits, defined as all deposits exclusive of time deposits, partially offset by an increase of $41.9 million in time deposits. Public and other deposits increased by $190.1 million due to an increase of $208.2 million in interest-bearing deposits, partially offset by a decrease of $18.1 million in non-interest bearing deposits.

Table 10 presents the composition of our savings deposits.


Savings Deposits							Table 10
(dollars in thousands)	June 30, 2025		December 31, 2024		Dollar Change		Percent Change
Money Market	$	3,347,231	$	3,430,047	$	(82,816)	(2.4)	%
Regular Savings	5,134,097		4,934,869		199,228		4.0
Total Savings Deposits	$	8,481,328	$	8,364,916	$	116,412	1.4	%

The increase in Regular Savings was primarily due to increases in consumer deposits of $153.0 million, public deposits of $43.7 million, and commercial deposits of $2.5 million. The decrease in Money Market was primarily due to decreases in commercial deposits of $74.2 million and consumer deposits of $8.6 million.

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Table 11 presents the maturity distribution of the estimated uninsured time deposits.


Maturity Distribution of Estimated Uninsured Time Deposits					Table 11
(dollars in thousands)	June 30, 2025		December 31, 2024		Change
Remaining maturity:
Three months or less	$	716,431	$	635,812	$	80,619
After three through six months	503,352		365,354		137,998
After six through twelve months	256,740		524,286		(267,546)
After twelve months	151,487		102,795		48,692
Total	$	1,628,010	$	1,628,247	$	(237)

Estimated uninsured deposits are calculated pursuant to regulatory guidance and reported in our Call Report and include deposits collateralized by government-backed securities and intercompany deposits of wholly-owned subsidiaries. Table 12 presents a reconciliation of our estimated uninsured deposits as reported in our Call Report to our adjusted uninsured deposits. We believe the adjusted uninsured deposits reconciliation provides useful information about our deposits at risk.


Uninsured Deposits Reconciliation			Table 12
(dollars in thousands)	June 30, 2025 1		December 31, 20242
Estimated Uninsured Deposits, as Reported in our Call Report	$	9,885,632	$	9,754,299
Less:
Deposits Collateralized by Government-Backed Securities	(2,003,084)		(1,794,050)
Intercompany Deposits of Wholly-Owned Subsidiaries	(125,395)		(121,932)
Other	(69,432)		(110,995)
Adjusted Uninsured Deposits	$	7,687,721	$	7,727,322

1Balances presented as of June 30, 2025 are preliminary.

2Balances presented as of December 31, 2024 were revised to reflect changes made in our Call Report.

Securities Sold Under Agreements to Repurchase

Securities sold under agreements to repurchase were $50.0 million and $100.0 million as of June 30, 2025 and December 31, 2024, respectively. In February 2025, a private institution exercised its right to call on a repurchase agreement with a balance of $50.0 million, resulting in its termination. As of June 30, 2025, our remaining repurchase agreement was at a fixed interest rate of 3.89% with a remaining maturity of 4.38 years. Our repurchase agreement was accounted for as a collateralized financing arrangement (i.e., a secured borrowing) and not as a sale and subsequent repurchase of securities.

Other Debt

Table 13 presents the composition of our other debt.


Other Debt					Table 13
(dollars in thousands)	June 30, 2025		December 31, 2024		Dollar Change
Federal Home Loan Bank of Des Moines Advances	$	550,000	$	550,000	$	—
Finance Lease Obligations	8,226		8,274		(48)
Total	$	558,226	$	558,274	$	(48)

Analysis of Business Segments

Our business segments are defined as Consumer Banking, Commercial Banking, and Treasury and Other.

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Table 14 summarizes net income from our business segments. Additional information about segment performance is presented in Note 9 Business Segments to the unaudited Consolidated Financial Statements.


Business Segment Net Income							Table 14
	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2025		2024		2025		2024
Consumer Banking	$	29,737	$	31,289	$	59,189	$	64,093
Commercial Banking	30,694		29,213		62,383		58,855
Total	60,431		60,502		121,572		122,948
Treasury and Other	(12,794)		(26,419)		(29,950)		(52,474)
Consolidated Total	$	47,637	$	34,083	$	91,622	$	70,474

Consumer Banking

Net income decreased by $1.6 million or 5% in the second quarter of 2025 compared to the same period in 2024, primarily due to a decrease in net interest income. Net interest income decreased by $2.9 million or 3%, primarily due to lower deposit spreads on higher deposit balances.

Net income decreased by $4.9 million or 8% in the first six months of 2025 compared to the same period in 2024, primarily due to a decrease in net interest income, coupled with an increase in noninterest expense and the provision for credit losses. This was partially offset by an increase in noninterest income. Net interest income decreased by $4.2 million or 2%, primarily due to lower deposit spreads on higher deposit balances, as well as lower loan balances. Noninterest expense increased by $3.5 million or 2%, primarily due to higher operational losses, salaries and benefits, and online banking platform costs, and allocated administrative and support unit costs. The provision for credit losses increased by $0.8 million or 15%, primarily due to higher net charge-offs in the auto loan portfolio. Noninterest income increased by $1.8 million or 3%, primarily due to higher monthly service fees, trust and asset management income, credit card commissions, annuity and insurance income, and debit card income.

Commercial Banking

Net income increased by $1.5 million or 5% in the second quarter of 2025 compared to the same period in 2024, primarily due to an increase in net interest income, partially offset by a decrease in noninterest income and an increase in noninterest expense. Net interest income increased by $3.1 million or 6%, primarily due to an increase in loan balances, primarily in commercial mortgages and allocated interest income due to increases in balances and spreads on interest bearing and savings deposits, partially offset by a reduction in noninterest bearing deposit balances. Noninterest income decreased by $0.5 million or 8%, primarily due to lower customer derivative program revenue, partially offset by an increase in merchant revenue. Noninterest expense increased by $0.9 million or 5%, primarily due to higher allocated administrative and support unit expenses, partially offset by lower salaries & benefits and broker charges related to the customer derivative program.

Net income increased by $3.5 million or 6% in the first six months of 2025 compared to the same period in 2024, primarily due to an increase in net interest income and noninterest income, partially offset by an increase in noninterest expense. Net interest income increased by $7.1 million or 7%, primarily due to an increase in loan balances, primarily in commercial mortgages, and an increase in allocated interest income due to increases in balances and spreads on interest bearing and savings deposits, partially offset by a reduction in noninterest bearing deposit balances. Noninterest expense increased by $1.9 million or 5%, primarily due to higher allocated administrative and support unit expenses, merchant processing fees, data services, and other professional services, partially offset by lower salaries & benefits.

Treasury and Other

Net loss decreased by $13.6 million or 52% in the second quarter of 2025 compared to the same period in 2024, primarily due to a decrease in net interest expense coupled with an increase in noninterest income, partially offset with an increase in the provision for credit losses. Net interest expense decreased by $14.6 million or 43%, primarily due to a decrease in funding costs reflecting the current lower rate environment. Noninterest income increased by $2.9 million or 168%, primarily due to a decrease in other income. The provision for credit losses and income taxes in this business segment represent the residual amounts to arrive at the total amount for the Company.

Net loss decreased by $22.5 million or 43% in the first six months of 2025 compared to the same period in 2024, primarily due to a decrease in net interest expense coupled with an increase in noninterest income, partially offset by an increase in noninterest expense and provision for credit losses. Net interest expense decreased by $23.8 million or 53%, primarily due to lower funding costs and an increase in interest income from higher asset yields. Noninterest income increased by $2.2 million

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or 43%, primarily due to increases in other income and bank-owned life insurance income. The provision for credit losses and income taxes in this business segment represent the residual amounts to arrive at the total amount for the Company.

Corporate Risk Profile

Credit Risk

We actively manage exposures with deteriorating asset quality to reduce levels of potential loss exposure and closely monitor our reserves and capital to address both anticipated and unforeseen issues. Risk management activities include analysis of portfolio segments and stress tests of certain segments to ensure that reserve and capital levels are appropriate. We perform frequent loan and lease-level risk monitoring and risk rating reviews, which provide opportunities for early interventions to allow for credit exits or restructuring, loan and lease sales, and voluntary workouts and liquidations.

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Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More

Table 15 presents information on NPAs and accruing loans and leases past due 90 days or more.


Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More							Table 15
(dollars in thousands)	June 30, 2025			December 31, 2024			Change
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial Mortgage	$	2,566		$	2,450		$	116
Commercial and Industrial	3,744			4,627			(883)
Total Commercial	6,310			7,077			(767)
Consumer
Residential Mortgage	5,842			5,052			790
Home Equity	5,387			4,514			873
Total Consumer	11,229			9,566			1,663
Total Non-Accrual Loans and Leases	17,539			16,643			896
Foreclosed Real Estate	342			2,657			(2,315)
Total Non-Performing Assets	$	17,881		$	19,300		$	(1,419)
Accruing Loans and Leases Past Due 90 Days or More
Consumer
Residential Mortgage	$	9,070		$	3,984		$	5,086
Home Equity	1,867			2,845			(978)
Automobile	680			776			(96)
Other	630			677			(47)
Total Consumer	12,247			8,282			3,965
Total Accruing Loans and Leases Past Due 90 Days or More	$	12,247		$	8,282		$	3,965
Total Loans and Leases	$	14,002,178		$	14,075,980		$	(73,802)
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	0.13		%	0.12		%	0.01		%
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate	0.13		%	0.14		%	(0.01)		%
Ratio of Non-Performing Assets to Total Assets	0.08		%	0.08		%	—		%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate	0.10		%	0.12		%	(0.02)		%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate	0.15		%	0.15		%	—		%
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases and Foreclosed Real Estate	0.22		%	0.20		%	0.02		%

Changes in Non-Performing Assets
Balance as of December 31, 2024	$	19,300
Additions1	5,731
Reductions
Payments	(2,636)
Return to Accrual Status	(818)
Sales of Foreclosed Real Estate	(2,532)
Charge-offs/Write-downs1	(1,164)
Total Reductions	(7,150)
Balance as of June 30, 2025	$	17,881

1Excludes loans that are fully charged-off and placed on non-accrual status during the same period.

NPAs consist of non-accrual loans and leases and foreclosed real estate. Changes in the level of non-accrual loans and leases typically are caused by loans and leases that reach a specified past due status, offset by reductions for loans and leases that are charged-off, written down, paid down, sold, transferred to foreclosed real estate, or are no longer classified as non-accrual because they have returned to accrual status.

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Non-accrual loans and leases as of June 30, 2025 were $17.5 million, an increase of $0.9 million or 5% from December 31, 2024 primarily due to increases in residential mortgage and home equity partially offset by a decline in commercial and industrial. Residential mortgage non-accrual loans increased $0.8 million or 16% from December 31, 2024. As of June 30, 2025, our residential mortgage non-accrual loans were comprised of 20 loans with a weighted average current loan-to-value ratio of 77.5%. Home equity non-accrual loans increased $0.9 million or 19% from December 31, 2024. As of June 30, 2025, our home equity non-accrual loans were comprised of 56 loans with a weighted average current loan-to-value ratio of 54%. Commercial and industrial non-accrual loans decreased $0.9 million from December 31, 2024, primarily due to the partial charge-off of a significant loan.

Foreclosed real estate represents property acquired as the result of borrower defaults on loans. Foreclosed real estate is recorded at fair value, less estimated selling costs, at the time of foreclosure. On an ongoing basis, properties are appraised as required by market conditions and applicable regulations. Foreclosed real estate was $0.3 million as of June 30, 2025 compared to $2.7 million as of December 31, 2024. The decrease was due to the sale of two foreclosed properties during the six months ended June 30, 2025.

Loans and Leases Past Due 90 Days or More and Still Accruing Interest

Loans and leases past due 90 days or more and still accruing interest were $12.2 million as of June 30, 2025, a $4.0 million or 48% increase from December 31, 2024. The increase was primarily in our residential mortgage portfolio. This category includes loans and leases that are well-secured and in the process of collection, as well as loans and leases that have not reached the specified past due status to be placed on non-accrual.

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Reserve for Credit Losses

Table 16 presents the activity in our reserve for credit losses.


Reserve for Credit Losses										Table 16
	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2025			2024			2025			2024
Balance at Beginning of Period	$	149,496		$	152,148		$	150,649		$	152,429
Loans and Leases Charged-Off
Commercial
Commercial and Industrial	(206)			(875)			(1,605)			(1,235)
Consumer
Residential Mortgage	—			(48)			—			(48)
Home Equity	(155)			(202)			(230)			(237)
Automobile	(1,253)			(1,095)			(3,004)			(2,143)
Other	(2,397)			(2,610)			(4,881)			(4,922)
Total Loans and Leases Charged-Off	(4,011)			(4,830)			(9,720)			(8,585)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial	78			263			155			379
Consumer
Residential Mortgage	11			63			22			105
Home Equity	180			113			308			297
Automobile	557			481			1,190			1,007
Other	567			517			1,024			1,123
Total Recoveries on Loans and Leases Previously Charged-Off	1,393			1,437			2,699			2,911
Net Charged-Off - Loans and Leases	(2,618)			(3,393)			(7,021)			(5,674)
Provision for Credit Losses:
Loans and Leases	3,454			3,206			7,036			6,748
Unfunded Commitments	(204)			(806)			(536)			(2,348)
Total Provision for Credit Losses	3,250			2,400			6,500			4,400
Balance at End of Period	$	150,128		$	151,155		$	150,128		$	151,155
Components
Allowance for Credit Losses - Loans and Leases	$	148,543		$	147,477		$	148,543		$	147,477
Reserve for Unfunded Commitments	1,585			3,678			1,585			3,678
Total Reserve for Credit Losses	$	150,128		$	151,155		$	150,128		$	151,155
Average Loans and Leases Outstanding	$	14,049,025		$	13,831,797		$	14,055,563		$	13,850,299
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)	0.07		%	0.10		%	0.10		%	0.08		%
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 1	1.06		%	1.07		%	1.06		%	1.07		%

1The numerator comprises the Allowance for Credit Losses - Loans and Leases.

Allowance for Credit Losses (the “Allowance”)

As of June 30, 2025 and December 31, 2024, the Allowance was $148.5 million or 1.06% of total loans and leases outstanding. The Allowance as of June 30, 2025 and December 31, 2024, includes a qualitative overlay to account for economic uncertainty and downside risk of a recession.

Net charge-offs on loans and leases for the three and six months ended June 30, 2025 were $2.6 million or 0.07% and $7.0 million or 0.10%, respectively of total average loans and leases on an annualized basis, compared to $3.4 million or 0.10% and $5.7 million or 0.08% of total average loans and leases on an annualized basis for the three and six months ended June 30, 2024, respectively. The increase for the six months ended June 30, 2025 was primarily due to higher gross charge-offs in both commercial and industrial and automobile portfolios.

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Reserve for Unfunded Commitments

The Unfunded Reserve was $1.6 million as of June 30, 2025, a decrease of $0.5 million or 25% from December 31, 2024, primarily due to lower unfunded commitments in our construction portfolio. The reserve for unfunded commitments is recorded in other liabilities in the unaudited consolidated statements of condition.

Provision for Credit Losses

For the three and six months ended June 30, 2025, the provision for credit losses was $3.3 million and $6.5 million, respectively, compared to $2.4 million and $4.4 million for the same respective periods last year. The increase in the provision was primarily due to the changes in the reserve for unfunded commitments and changes in the Allowance during the three and six months ended June 30, 2025 compared to the same periods in the prior year.

Market Risk

Market risk is the potential of loss arising from adverse changes in interest rates and prices. We are exposed to market risk as a consequence of the normal course of conducting our business activities. Our market risk management process involves measuring, monitoring, controlling, and mitigating risks that can significantly impact our consolidated statements of income and condition. In this management process, we balance market risks with expected returns to enhance earnings performance while managing volatility to an acceptable level.

Our primary market risk exposure is interest rate risk.

Interest Rate Risk

The objective of our interest rate risk management process is to optimize net interest income while operating within acceptable limits. This involves balancing expected returns with potential earnings and price volatility due to changes in interest rates over short-term, medium-term, and long-term time horizons, while maintaining adequate levels of funding and liquidity. The potential cash flows, sales, or replacement value of many of our assets and liabilities, especially those that earn or pay interest, are sensitive to changes in interest rates. This interest rate risk arises primarily from our core business activities of extending loans and accepting deposits. Our investment securities portfolio is also subject to significant interest rate risk.

We utilize two management guidelines to measure our interest rate risk exposure: 1) net interest income (“NII”) sensitivity, and 2) economic value of equity (“EVE”) sensitivity. NII and EVE sensitivities measure the estimated percentage change in forward looking net interest income and economic value, respectively, under instantaneous parallel shocks of the yield curve ranging from -400 basis points to +400 basis points. We measure NII sensitivity over two successive 12-month periods to evaluate interest rate risk over short-term and medium-term time horizons. EVE sensitivity, which captures the present value of all on and off-balance sheet positions, measures interest rate risk over a long-term time horizon. The results are measured relative to established limits and early warning indicators that ensure that fluctuation in income and valuation in both up and down rate shocks remain within levels approved by the Asset and Liability Management Committee (“ALCO”) and the Board of Directors. While we recognize that instantaneous parallel shocks of the entire yield curve are unrealistic, we believe that the application of immediate shocks provides us with a sufficient range of potential outcomes to frame our risk exposures. We pay particular attention to the +/-200 basis point shock sensitivities, as we believe they represent a more realistic range of rate movements that could occur in the near to medium term. As of June 30, 2025, we remained within applicable guidelines for such scenarios.

The ALCO, which is comprised of members of executive management, utilizes several techniques to manage interest rate risk, which include:

•adjusting the balance sheet mix or altering the interest rate characteristics of assets and liabilities;

•changing product pricing strategies;

•modifying characteristics, including mix and duration, of the AFS investment securities portfolio; and

•using derivative financial instruments.

Changes in interest rates may have a material impact on earnings and valuation due to balance sheet cash flow, maturity structure and repricing frequency. The investment portfolio and loan portfolios have significant repricing volumes and cash flows from maturities and paydowns, providing opportunities to redeploy funds in order to respond to changes in the rate

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environment. These assets are primarily funded by deposits, which generally have an indeterminate life. Historically, our deposit base has consisted primarily of core consumer and commercial deposit relationships. While we strive to position our balance sheet to organically reduce volatility in earnings and valuation, primarily through our funding and investment portfolio positioning, as well as product pricing strategies, we have also established a hedging program designed to allow us to adjust the duration of our earning assets synthetically. As of June 30, 2025, our hedging program consisted primarily of pay-fixed interest rate swaps. As interest rates change, we may use different instruments to manage interest rate risk, including caps, floors, swaptions and other commonly utilized derivative instruments. See Note 10 Derivative Financial Instruments to the unaudited Consolidated Financial Statements.

A key element in our ongoing process to measure and monitor interest rate risk is the utilization of an asset/liability simulation model. This model attempts to capture the dynamic nature of assets and liabilities in various interest rate environments. It estimates and measures our balance sheet sensitivity to changes in interest rates. Given the structure of our balance sheet, model results are particularly sensitive to changes in prepayment rates on mortgage-related assets and the repricing behavior of interest-bearing deposits. We utilize a model to estimate the prepayment behavior of our mortgage-related assets, which considers the characteristics of the underlying mortgage loans, including rate (used to gauge refinance incentive), seasoning or age, and seasonality. The model’s forecasted results are regularly tested against historical prepayment behavior and is, in the ordinary course, recalibrated if the difference between actual and projected prepayments exceed established guidelines. Separate models are utilized to project interest-bearing deposit repricing behavior and deposit account attrition and average lives in various interest rate environments. These models were developed based upon our historical behavior over several interest rate cycles. The models’ forecast results are periodically tested against historical results and have been and may continue to be recalibrated.

We utilize net interest income simulations to analyze short-term income sensitivities to changes in interest rates. Table 17a presents as of June 30, 2025 and December 31, 2024, an estimate of the change in net interest income over the next twelve months that would result from an immediate change in interest rates, moving in a parallel fashion over the entire yield curve, relative to the measured base case scenario. The base case scenario assumes the consolidated statements of condition and interest rates are generally unchanged.


Net Interest Income Sensitivity Profile							Table 17a
	Impact on Future Annual Net Interest Income
(dollars in thousands)	June 30, 2025				December 31, 2024
Immediate Change in Interest Rates (basis points)
+400	$	34,112	6.0	%	$	31,028	5.6	%
+300	27,909		4.9		25,281		4.6
+200	20,681		3.6		18,783		3.4
+100	12,278		2.2		10,393		1.9
-100	(8,245)		(1.5)		(13,029)		(2.3)
-200	(18,947)		(3.3)		(27,883)		(5.0)
-300	(31,989)		(5.6)		(43,536)		(7.8)
-400	(64,691)		(11.4)		(65,753)		(11.8)

Based on our net interest income simulation as of June 30, 2025, net interest income is expected to increase as interest rates rise. Rising interest rates would drive higher rates on floating rate loans, interest rate swaps and investment securities, as well as higher reinvestment rates on loan and investment securities cashflows. However, lower interest rates would likely cause an initial decline in net interest income as lower rates would lead to lower yields on loans, swaps, and investment securities, as well as drive higher premium amortization on existing investment securities. Based on our net interest income simulation as of June 30, 2025, NII sensitivity to changes in interest rates for the twelve months subsequent to June 30, 2025 increased slightly to rising rates and decreased slightly to falling rates compared to the sensitivity profile for December 31, 2024. These NII sensitivity changes are attributable to updated deposit beta assumptions implemented during the period and to an increase in volume of floating rate assets and swaps, partially offset by an increase in interest rate sensitive deposits.

To analyze the impact of changes in interest rates in a more realistic manner, we also simulate non-parallel interest rate scenarios. These scenarios help to isolate the sensitivity of earnings to various points on the yield curve. Based upon our interest rate simulations, the Company is exposed to movements in both the short and long-end of the yield curve. A movement higher or lower in the short-end of the yield curve would lead to floating-rate assets immediately repricing, while liability funding would react on a lag. Thus, net interest income may decrease from the base case in the near term if short-

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term rates were to decrease, although would benefit if short-term rates were to increase and liabilities maintained their ability to lag market rate increases. A movement higher or lower in the long end of the yield curve would lead to assets repricing over time given ongoing cash flows from maturities and prepayments of investment securities and loans. Net interest income may decrease from the base case should long-term rates decline from their current levels, although would benefit if long-term rates were to increase.

Table 17b presents an estimate of the change in EVE that would result from an immediate change in interest rates, moving in a parallel fashion over the entire yield curve, relative to the measured base case scenario. Similar to the sensitivity profile above, the base case scenario assumes the consolidated statements of condition and interest rates are generally unchanged.


Economic Value of Equity Sensitivity Profile							Table 17b
	Impact on Economic Value of Equity
(dollars in thousands)	June 30, 2025				December 31, 2024
Immediate Change in Interest Rates (basis points)
+400	$	(506,084)	(18.3)	%	$	(1,032,211)	(29.1)	%
+300	(389,662)		(14.1)		(763,479)		(21.5)
+200	(265,775)		(9.6)		(496,443)		(14.0)
+100	(135,174)		(4.9)		(238,689)		(6.7)
-100	162,068		5.9		177,198		5.0
-200	307,986		11.1		274,546		7.7
-300	298,732		10.8		294,363		8.3
-400	180,624		6.5		(99,219)		(2.8)

Compared to December 31, 2024, EVE sensitivity decreased in the rising rate scenarios and increased in the falling rate scenarios. We implemented new deposit pricing and attrition models during the period, which updated the repricing beta and average life assumptions, and lowered deposit account duration compared to the prior deposit models. Additionally, we increased the notional balance of active and forward starting pay-fixed interest rate swaps. These factors resulted in generally lower asset and liability duration and improved EVE modeling results.

Other Market Risks

In addition to interest rate risk, we are exposed to other forms of market risk in our normal business transactions. Foreign currency holdings expose us to a small degree of foreign currency risk. Our trust and asset management income are at risk to fluctuations in the market values of underlying assets, particularly debt and equity securities. Also, our share-based compensation expense is dependent on the fair value of our restricted stock units and restricted stock at the date of grant. The fair value of restricted stock units and restricted stock is impacted by the market price of the Parent’s common stock on the date of grant and is at risk to changes in equity markets, general economic conditions, and other factors.

Liquidity Risk Management

The objective of our liquidity risk management process is to manage cash flow and liquidity in an effort to provide continuous access to sufficient, reasonably priced funds. Funding requirements are impacted by factors such as loan originations and refinancings, changes in deposit balances, liability issuances and settlements, and off-balance sheet funding commitments. We adhere to various regulatory guidelines regarding required liquidity levels and periodically monitor our liquidity position in light of the changing economic environment and customer activity. Based on periodic liquidity assessments, we may alter our asset, liability, and off- balance sheet positions. The ALCO monitors sources and uses of funds and modifies asset and liability positions as liquidity requirements change. This process, combined with our ability to raise funds in money and capital markets and through private placements, provides flexibility in managing the exposure to liquidity risk.

We maintain access to ample sources of readily available contingent liquidity. As of June 30, 2025, we had pledged loans and investment securities to the Federal Reserve Discount Window and had remaining borrowing capacity of $7.6 billion . We are also a member of the FHLB. As of June 30, 2025, we had pledged loans to the FHLB and had remaining borrowing capacity of $1.8 billion. The ratio of readily available liquidity to adjusted uninsured deposits was 132% at June 30, 2025, compared to 116% at December 31, 2024. The increase in the readily available liquidity to adjusted uninsured deposits ratio was due to a decrease in uninsured deposits combined with increased borrowing capacity realized from pledging additional loan collateral.

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In addition, we utilize our investment securities portfolio as collateral to secure deposits of public entities as well as repurchase agreements with private institution counterparties. The high-quality nature of our investment securities portfolio, which consists primarily of government and agency securities, facilitates the use of these assets for pledging purposes.

Other sources of liquidity also include investment securities in our AFS securities portfolio and our ability to sell loans in the secondary market. Our core deposits have historically provided us with a long-term source of stable and relatively low-cost source of funding. Additional funding is also available through the issuance of long-term debt or equity.

General market and economic conditions will impact our ability to borrow funds from external sources, as well as the cost of such borrowing both in terms of rate, as well as haircuts on collateral pledged to support such borrowings. Although a significant portion of our investment securities were in an unrealized loss position as of June 30, 2025, we believe we have sufficient access to various forms of liquidity that would alleviate the need to liquidate these investment securities and realize the losses.

We continued our focus on maintaining a strong liquidity position. As of June 30, 2025, cash and cash equivalents were $0.8 billion, the carrying value of our AFS investment securities was $3.1 billion, and total deposits were $20.8 billion. As of June 30, 2025, our AFS investment securities portfolio was comprised of securities with an average base duration of approximately 2.89 years, excluding the impact from our interest rate swaps.

Capital Management

We actively manage capital, commensurate with our risk profile, to enhance shareholder value. We also seek to maintain capital levels for the Company and the Bank at amounts in excess of the regulatory “well-capitalized” thresholds. Periodically, we may respond to market conditions by implementing changes to our overall balance sheet positioning to manage our capital position.

The Company and the Bank are each subject to regulatory capital requirements administered by the federal banking agencies and the Division of Financial Institutions, an agency of the State of Hawai‘i Department of Commerce and Consumer Affairs. Failure to meet minimum capital requirements could cause certain mandatory and discretionary actions by regulators that, if undertaken, would likely have a material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative and qualitative measures. These measures were established by regulation intended to ensure capital adequacy. As of June 30, 2025, the Company’s capital levels remained characterized as “well-capitalized.” There have been no conditions or events since June 30, 2025, that management believes have changed either the Company’s or the Bank’s capital classifications. The Company’s regulatory capital ratios are presented in Table 18 below.

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Table 18 presents our regulatory capital and ratios as of June 30, 2025 and December 31, 2024.


Regulatory Capital and Ratios				Table 18
(dollars in thousands)	June 30, 2025			December 31, 2024
Regulatory Capital 1
Total Common Shareholders’ Equity	$	1,398,107		$	1,322,774
Add: CECL Transitional Amount	—			2,375
Less: Goodwill, Net of Deferred Tax Liabilities	28,746			28,746
Postretirement Benefit Liability Adjustments	(22,931)			(23,396)
Net Unrealized Losses on Investment Securities 2	(276,263)			(319,993)
Other	(9,097)			(9,097)
Common Equity Tier 1 Capital	1,677,652			1,648,889
Preferred Stock, Net of Issuance Cost	336,101			336,101
Tier 1 Capital	2,013,753			1,984,990
Allowable Reserve for Credit Losses	150,128			148,634
Total Regulatory Capital	$	2,163,881		$	2,133,624
Risk-Weighted Assets	$	14,208,032		$	14,225,908
Key Regulatory Capital Ratios
Common Equity Tier 1 Capital Ratio	11.81		%	11.59		%
Tier 1 Capital Ratio	14.17			13.95
Total Capital Ratio	15.23			15.00
Tier 1 Leverage Ratio	8.46			8.31

1Regulatory capital ratios as of June 30, 2025 are preliminary.

2Includes unrealized gains and losses related to the Company’s reclassification of AFS investment securities to the HTM category.

Shareholders' Equity

As of June 30, 2025, shareholders’ equity was $1.7 billion, an increase of $75.3 million million or 4.5% from December 31, 2024. For the first six months of 2025, the increase was attributed to net income of $91.6 million, other comprehensive income of $44.2 million, share-based compensation of $7.5 million, and common stock issued under purchase and equity compensation plans of $2.6 million were offset by cash dividends declared of $56.5 million on common shares, cash dividends declared of $10.5 million on preferred shares, and common stock repurchased of $3.6 million related to taxes withheld for share-based compensation.

No shares of common stock were repurchased under the share repurchase program in the second quarter of 2025. From the beginning of our share repurchase program in July 2001 through June 30, 2025, we repurchased a total of 58.2 million shares of our common stock and returned a total of $2.4 billion to our shareholders at an average cost of $41.24 per share. Remaining buyback authority under our share repurchase program was $126.0 million as of June 30, 2025. The actual amount and timing of future share repurchases, if any, will depend on market and economic conditions, regulatory rules, applicable SEC rules, and various other factors.

In July 2025, the Parent’s Board of Directors declared quarterly dividend payments of its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, of $10.94 per share, equivalent to $0.2735 per depositary share and its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, of $20.00 per share, equivalent to $0.5000 per depositary share. The dividend will be payable on August 1, 2025, to shareholders of record of the preferred stock at the close of business on July 17, 2025.

In July 2025, the Parent’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Parent’s outstanding common shares. The dividend will be payable on September 15, 2025, to shareholders of record of the common stock at the close of business on August 29, 2025.

Operational Risk

Operational risk represents the risk of loss resulting from our operations, including, but not limited to, the risk of fraud by employees or persons outside the Company, errors relating to transaction processing and technology, failure to adhere to compliance requirements, and the risk of cyber attacks. We are also exposed to operational risk through our outsourcing

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arrangements, and the effect that changes in circumstances or capabilities of our outsourcing vendors can have on our ability to continue to perform operational functions necessary to our business. The risk of loss also includes the potential legal actions that could arise as a result of an operational deficiency or as a result of noncompliance with applicable regulatory standards, adverse business decisions or their implementation, and customer attrition due to potential negative publicity. Operational risk is inherent in all business activities, and management of this risk is important to the achievement of Company goals and objectives.

Our Operational Risk Committee (the “ORC”) provides oversight and assesses the most significant operational risks including cybersecurity risks facing the Company. We have developed a framework that provides for a centralized operating risk management function through the ORC, supplemented by business unit responsibility for managing operational risks specific to their business units. Our internal audit department also validates the system of internal controls through ongoing risk-based audit procedures and reports on the effectiveness of internal controls to executive management and the Audit Committee of the Board of Directors.

We continuously strive to strengthen our system of internal controls to improve the oversight of operational risk. While our internal controls have been designed to minimize operational risks, there is no assurance that business disruption or operational losses will not occur. On an ongoing basis, management reassesses operational risks, implements appropriate process changes, and invests in enhancements to our systems of internal controls.

Off-Balance Sheet Arrangements, Credit Commitments, and Contractual Obligations

Off-Balance Sheet Arrangements

We hold interests in several unconsolidated variable interest entities (“VIEs”). These unconsolidated VIEs are primarily low-income housing partnerships. Variable interests are defined as contractual ownership or other interests in an entity that change with fluctuations in an entity’s net asset value. The primary beneficiary consolidates the VIE. We have determined that the Company is not the primary beneficiary of these entities. As a result, we do not consolidate these VIEs.

Credit Commitments and Contractual Obligations

Our credit commitments and contractual obligations have not changed materially since previously reported in our Annual Report on Form 10-K for the year ended December 31, 2024.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

See “Market Risk” of this Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

The Company’s management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of June 30, 2025. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2025.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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Part II - Other Information

Item 1. Legal Proceedings

There are no pending legal proceedings against or involving the Company for which the outcome is likely to have a material adverse effect upon its financial position or results of operations. For additional information, see “Contingencies” in Note 11 Commitments and Contingencies to our unaudited Consolidated Financial Statements set forth in Item 1, Part I of this report.

Item 1A. Risk Factors

There are no material changes from the risk factors set forth under Part I, Item 1A. “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and Part II, Item 1A. “Risk Factors” in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

There were no unregistered sales of the Company's stock during the quarter.

The Parent’s repurchases of its common stock during the second quarter of 2025 were as follows:


Issuer Purchases of Equity Securities
Period	Total Number of Shares Purchased 1	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs 2
April 1 - 30, 2025	159	$	65.92	—	$	126,038,927
May 1 - 31, 2025	4,105	67.15		—	126,038,927
June 1 - 30, 2025	—	—		—	126,038,927
Total	4,264	$	67.10	—

1During the second quarter of 2025, 4,264 shares were acquired from employees in connection with income tax withholdings related to the vesting of restricted stock. The shares were purchased at the closing price of the Parent’s common stock on the dates of purchase.

2The share repurchase program was first announced in July 2001 with an initial authorization to repurchase $70 million in shares of common stock. The Board increased the share repurchase program, most recently in January 2019 by $130 million. The share repurchase program has no set expiration or termination date. The actual amount and timing of future share repurchases, if any, will depend on market and economic conditions, regulatory rules, applicable SEC rules, and various other factors.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

During the fiscal quarter ended June 30, 2025,

Item 6. Exhibits

A list of exhibits to this Form 10-Q is set forth on the Exhibit Index and is incorporated herein by reference.

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Exhibit Index


Exhibit Number

3.1						Certificate of Incorporation of Bank of Hawaii Corporation (f/k/a Pacific Century Financial Corporation and Bancorp Hawaii, Inc.), as amended (incorporated by reference to Exhibit 3.1 to Bank of Hawaii Corporation’s Annual Report on Form 10-K for its fiscal year ended December 31, 2005 filed on February 28, 2006).

3.2						Certificate of Amendment of Certificate of Incorporation of Bank of Hawaii Corporation (incorporated by reference to Exhibit 3.1 to Bank of Hawaii Corporation’s Current Report on Form 8-K filed on April 30, 2008).

3.3						Certificate of Designations of 4.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A (incorporated by reference to Exhibit 3.1 to Bank of Hawaii Corporation’s Current Report on Form 8-K filed on June 15, 2021).

3.4						Certificate of Designations of 8.000% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B (incorporated by reference to Exhibit 3.1 to Bank of Hawaii Corporation’s Current Report on Form 8-K filed on June 21, 2024).

3.5						Amended and Restated By-laws of Bank of Hawaii Corporation (as amended November 20, 2020) (incorporated by reference to Exhibit 3.2 to Bank of Hawaii Corporation’s Current Report on Form 8-K filed on November 23, 2020).

4.1						Deposit Agreement, dated June 15, 2021, by and among Bank of Hawaii Corporation, Computershare Inc. and Computershare Trust Company, N.A., jointly as depositary, and the holders from time to time of the depositary receipts described therein (incorporated by reference to Exhibit 4.1 to Bank of Hawaii Corporation’s Current Report on Form 8-K filed with the SEC on June 15, 2021)

4.2						Form of Depository Receipt, Series A (included in Exhibit 4.1)

4.3						Deposit Agreement, dated June 21, 2024, by and among Bank of Hawaii Corporation, Computershare Inc. and Computershare Trust Company, N.A., jointly as depositary, and the holders from time to time of the depositary receipts described therein (incorporated by reference to Exhibit 4.1 to Bank of Hawaii Corporation’s Current Report on Form 8-K filed with the SEC on June 21, 2024)

4.4						Form of Depository Receipt, Series B (included in Exhibit 4.3)

4.5						Instruments defining the rights of holders of long-term debt of Bank of Hawaii Corporation and its consolidated subsidiaries are not filed as exhibits because the amount of debt authorized under any such instruments does not exceed 10% of the total assets of Bank of Hawaii Corporation and its consolidated subsidiaries. Bank of Hawaii Corporation agrees to furnish a copy of any such instrument to the Commission upon request.

10.1*						Composite Directors' Deferred Compensation Plan, as amended through July 1, 2025.

31.1						Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Amended, Adopted Pursuant to Section 302 of the Sarbanes Oxley Act of 2002

31.2						Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Amended, Adopted Pursuant to Section 302 of the Sarbanes Oxley Act of 2002

32						Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS						Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH						Inline XBRL Taxonomy Extension Schema Document

101.CAL						XBRL Taxonomy Extension Valuation Linkbase Document

101.DEF						XBRL Taxonomy Extension Definition Linkbase Document

101.LAB						XBRL Taxonomy Extension Label Linkbase Document

101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document

104						The cover page for the Company’s Quarterly Report on the Form 10-Q has been formatted in Inline XBRL and contained in Exhibit 101

*Management contract or compensatory plan or arrangement

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Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Date:	July 28, 2025		Bank of Hawaii Corporation

		By:	/s/ Peter S. Ho
			Peter S. Ho
			Chief Executive Officer (Principal Executive Officer)



		By:	/s/ Bradley S. Satenberg
			Bradley S. Satenberg
			Chief Financial Officer (Principal Financial Officer)

BANK OF HAWAII CORP - Quarter Report: 2025 June (Form 10-Q)

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