# EDGAR Filing Document

**Accession Number:** 0000046195
**File Stem:** 0001628280-25-036240
**Filing Date:** 2025-7
**Character Count:** 290403
**Document Hash:** e9b54c4fa3125d84c46c8947f7dbefbb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-25-036240.hdr.sgml**: 20250728

**ACCESSION NUMBER**: 0001628280-25-036240

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 94

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250728

**DATE AS OF CHANGE**: 20250728

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BANK OF HAWAII CORP
- **CENTRAL INDEX KEY:** 0000046195
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 990148992
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-06887
- **FILM NUMBER:** 251156701

**BUSINESS ADDRESS:**
- **STREET 1:** 130 MERCHANT STREET
- **CITY:** HONOLULU
- **STATE:** HI
- **ZIP:** 96813
- **BUSINESS PHONE:** 8886433888

**MAIL ADDRESS:**
- **STREET 1:** 130 MERCHANT STREET
- **CITY:** HONOLULU
- **STATE:** HI
- **ZIP:** 96813

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PACIFIC CENTURY FINANCIAL CORP
- **DATE OF NAME CHANGE:** 19970430

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BANCORP HAWAII INC
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HAWAII BANCORPORATION INC
- **DATE OF NAME CHANGE:** 19800128

?xml version='1.0' encoding='ASCII'? boh-20250630

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

**(Mark One)**

⌧ **Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2025**

**or**

□ **Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ______ to**

**Commission File Number: 1-6887**

**BANK OF HAWAII CORPORATION**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **99-0148992** |
| (State of incorporation) | (I.R.S. Employer Identification No.) |

---

---

| | | | |
|:---|:---|:---|:---|
| **130 Merchant Street** | **Honolulu** | **Hawaii** | **96813** |
| (Address of principal executive offices) | (City) | (State) | (Zip Code) |

---

**1-888-643-3888**

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol | Name of each exchange on which registered |
| **Common Stock, par value $0.01 per share** | **BOH** | **New York Stock Exchange** |
| **Depository Shares, Each Representing 1/40**<sup>th</sup> **Interest in a Share of 4.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A** | **BOH.PRA** | **New York Stock Exchange** |
| **Depository Shares, Each Representing 1/40**<sup>th</sup> **Interest in a Share of 8.000% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B** | **BOH.PRB** | **New York Stock Exchange** |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Yes ⌧ No □

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Yes ⌧ No □

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Large accelerated filer | ⌧ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accelerated filer | □ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-accelerated filer | □ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Smaller reporting company | □ |
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Emerging growth company | □ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). &nbsp;&nbsp;&nbsp;&nbsp;Yes □ No ⌧

As of July 22, 2025, there were 39,767,508 shares of common stock outstanding.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**Bank of Hawaii Corporation**

**Form 10-Q**

**Index**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| **<u>[Part I - Financial](#idceff8c525764fd9a4aea5606912f912_10)[Information](#idceff8c525764fd9a4aea5606912f912_10)</u>** | **<u>[Part I - Financial](#idceff8c525764fd9a4aea5606912f912_10)[Information](#idceff8c525764fd9a4aea5606912f912_10)</u>** | [2](#idceff8c525764fd9a4aea5606912f912_10) |
| [Item 1.](#idceff8c525764fd9a4aea5606912f912_13) | <u>[Financial Statements (Unaudited)](#idceff8c525764fd9a4aea5606912f912_13)</u> | [2](#idceff8c525764fd9a4aea5606912f912_13) |
| | <u>[Consolidated Statements of Condition - June 30, 2025 and December 31, 2024](#idceff8c525764fd9a4aea5606912f912_16)</u> | [2](#idceff8c525764fd9a4aea5606912f912_16) |
| | <u>[Consolidated Statements of Income - Three and six months ended June 30, 2025 and 2024](#idceff8c525764fd9a4aea5606912f912_19)</u> | [3](#idceff8c525764fd9a4aea5606912f912_19) |
| | <u>[Consolidated Statements of Comprehensive Income - Three and six months ended June 30, 2025 and 2024](#idceff8c525764fd9a4aea5606912f912_22)</u> | [4](#idceff8c525764fd9a4aea5606912f912_22) |
| | <u>[Consolidated Statements of Shareholders' Equity - Three and six months ended June 30, 2025 and 2024](#idceff8c525764fd9a4aea5606912f912_25)</u> | [5](#idceff8c525764fd9a4aea5606912f912_25) |
| | <u>[Consolidated Statements of Cash Flows - Six months ended June 30, 2025 and 2024](#idceff8c525764fd9a4aea5606912f912_28)</u> | [6](#idceff8c525764fd9a4aea5606912f912_28) |
| | <u>[Notes to Consolidated Financial Statements](#idceff8c525764fd9a4aea5606912f912_31)</u> | [7](#idceff8c525764fd9a4aea5606912f912_31) |
| [Item 2.](#idceff8c525764fd9a4aea5606912f912_76) | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#idceff8c525764fd9a4aea5606912f912_76)</u> | [42](#idceff8c525764fd9a4aea5606912f912_76) |
| [Item 3.](#idceff8c525764fd9a4aea5606912f912_118) | <u>[Quantitative and Qualitative Disclosures About Market Risk](#idceff8c525764fd9a4aea5606912f912_118)</u> | [66](#idceff8c525764fd9a4aea5606912f912_118) |
| [Item 4.](#idceff8c525764fd9a4aea5606912f912_121) | <u>[Controls and Procedures](#idceff8c525764fd9a4aea5606912f912_121)</u> | [66](#idceff8c525764fd9a4aea5606912f912_121) |
| **<u>[Part II - Other Information](#idceff8c525764fd9a4aea5606912f912_124)</u>** | **<u>[Part II - Other Information](#idceff8c525764fd9a4aea5606912f912_124)</u>** | [67](#idceff8c525764fd9a4aea5606912f912_124) |
| [Item 1.](#idceff8c525764fd9a4aea5606912f912_127) | <u>[Legal Proceedings](#idceff8c525764fd9a4aea5606912f912_127)</u> | [67](#idceff8c525764fd9a4aea5606912f912_127) |
| [Item 1A.](#idceff8c525764fd9a4aea5606912f912_130) | <u>[Risk Factors](#idceff8c525764fd9a4aea5606912f912_130)</u> | [67](#idceff8c525764fd9a4aea5606912f912_130) |
| [Item 2.](#idceff8c525764fd9a4aea5606912f912_133) | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#idceff8c525764fd9a4aea5606912f912_133)</u> | [67](#idceff8c525764fd9a4aea5606912f912_133) |
| Item 3. | <u>[Defaults Upon Senior Securities](#idceff8c525764fd9a4aea5606912f912_434)</u> | [67](#idceff8c525764fd9a4aea5606912f912_434) |
| Item 4. | <u>[Mine Safety Disclosures](#idceff8c525764fd9a4aea5606912f912_440)</u> | [67](#idceff8c525764fd9a4aea5606912f912_440) |
| [Item 5.](#idceff8c525764fd9a4aea5606912f912_136) | <u>[Other Information](#idceff8c525764fd9a4aea5606912f912_136)</u> | [67](#idceff8c525764fd9a4aea5606912f912_136) |
| [Item 6.](#idceff8c525764fd9a4aea5606912f912_139) | <u>[Exhibits](#idceff8c525764fd9a4aea5606912f912_139)</u> | [67](#idceff8c525764fd9a4aea5606912f912_139) |
| <u>[Signatures](#idceff8c525764fd9a4aea5606912f912_142)</u> | | [69](#idceff8c525764fd9a4aea5606912f912_142) |

---

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**Part I - Financial Information**

**Item 1. Financial Statements**

**Bank of Hawaii Corporation and Subsidiaries**

**Consolidated Statements of Condition**

---

| | | |
|:---|:---|:---|
| (dollars in thousands, except per share amounts) | **June 30, 2025**<br>**(Unaudited)** | **December 31, 2024** |
| **Assets** |  |  |
| Cash and Cash Equivalents | $768683 | $763571 |
| Investment Securities |  |  |
| &nbsp;&nbsp;&nbsp;Available-for-Sale | 3111504 | 2689528 |
| &nbsp;&nbsp;&nbsp;Held-to-Maturity (Fair Value of $3,754,794 and $3,820,882) | 4441353 | 4618543 |
| Loans Held for Sale | 1867 | 2150 |
| Loans and Leases | 14002178 | 14075980 |
| &nbsp;&nbsp;&nbsp;Allowance for Credit Losses | (148543) | (148528) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Loans and Leases | 13853635 | 13927452 |
| Premises and Equipment, Net | 192221 | 184480 |
| Operating Lease Right-of-Use Assets | 83594 | 80165 |
| Accrued Interest Receivable | 67204 | 66367 |
| Mortgage Servicing Rights | 18362 | 19199 |
| Goodwill | 31517 | 31517 |
| Bank-Owned Life Insurance | 488028 | 481184 |
| Other Assets | 651784 | 736958 |
| **Total Assets** | $23709752 | $23601114 |
| **Liabilities** |  |  |
| Deposits |  |  |
| &nbsp;&nbsp;&nbsp;Noninterest-Bearing Demand | $5424471 | $5423562 |
| &nbsp;&nbsp;&nbsp;Interest-Bearing Demand | 3855120 | 3784984 |
| &nbsp;&nbsp;&nbsp;Savings | 8481328 | 8364916 |
| &nbsp;&nbsp;&nbsp;Time | 3037995 | 3059575 |
| Total Deposits | 20798914 | 20633037 |
| Securities Sold Under Agreements to Repurchase | 50000 | 100000 |
| Other Debt | 558226 | 558274 |
| Operating Lease Liabilities | 92381 | 88794 |
| Retirement Benefits Payable | 23528 | 23760 |
| Accrued Interest Payable | 26732 | 34799 |
| Other Liabilities | 416864 | 494676 |
| **Total Liabilities** | 21966645 | 21933340 |
| **Commitments and Contingencies (Note 11)** |  |  |
| **Shareholders' Equity** |  |  |
| Preferred Stock (Series A, $.01 par value; authorized 180,000 shares issued and outstanding) | 180000 | 180000 |
| Preferred Stock (Series B, $.01 par value; authorized 165,000 shares issued and outstanding) | 165000 | 165000 |
| Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2025 - 58,775,870 / 39,765,375); and December 31, 2024 - 58,765,907 / 39,762,255) | 587 | 585 |
| Capital Surplus | 655479 | 647403 |
| Accumulated Other Comprehensive Loss | (299194) | (343389) |
| Retained Earnings | 2158450 | 2133838 |
| Treasury Stock, at Cost (Shares: June 30, 2025 - 19,010,495 and December 31, 2024 - 19,003,609) | (1117215) | (1115663) |
| **Total Shareholders' Equity** | 1743107 | 1667774 |
| **Total Liabilities and Shareholders' Equity** | $23709752 | $23601114 |

---

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

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**Bank of Hawaii Corporation and Subsidiaries**

**Consolidated Statements of Income (Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(dollars in thousands, except per share amounts) | **2025** | **2024** | **2025** | **2024** |
| Interest Income |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest and Fees on Loans and Leases | $166779 | $163208 | $329861 | $322544 |
| &nbsp;&nbsp;&nbsp;Income on Investment Securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Available-for-Sale | 27007 | 21468 | 51375 | 43225 |
| &nbsp;&nbsp;&nbsp;&nbsp;Held-to-Maturity | 19835 | 21595 | 40126 | 43731 |
| &nbsp;&nbsp;&nbsp;Cash and Cash Equivalents | 3817 | 6139 | 9277 | 12296 |
| &nbsp;&nbsp;&nbsp;Other | 1097 | 1120 | 2182 | 2090 |
| Total Interest Income | 218535 | 213530 | 432821 | 423886 |
| Interest Expense |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | 82476 | 91542 | 164168 | 180598 |
| &nbsp;&nbsp;&nbsp;Securities Sold Under Agreements to Repurchase | 491 | 1180 | 1235 | 2623 |
| &nbsp;&nbsp;&nbsp;Other Debt | 5885 | 5962 | 11928 | 11881 |
| Total Interest Expense | 88852 | 98684 | 177331 | 195102 |
| **Net Interest Income** | 129683 | 114846 | 255490 | 228784 |
| Provision for Credit Losses | 3250 | 2400 | 6500 | 4400 |
| Net Interest Income After Provision for Credit Losses | 126433 | 112446 | 248990 | 224384 |
| Noninterest Income |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fees, Exchange, and Other Service Charges | 14383 | 13769 | 28820 | 27892 |
| &nbsp;&nbsp;&nbsp;Trust and Asset Management | 12097 | 12223 | 23838 | 23412 |
| &nbsp;&nbsp;&nbsp;Service Charges on Deposit Accounts | 8119 | 7730 | 16378 | 15677 |
| &nbsp;&nbsp;&nbsp;Bank-Owned Life Insurance | 3714 | 3396 | 7325 | 6752 |
| &nbsp;&nbsp;&nbsp;Annuity and Insurance | 1437 | 1583 | 2992 | 2629 |
| &nbsp;&nbsp;&nbsp;Mortgage Banking | 849 | 1028 | 1837 | 1979 |
| &nbsp;&nbsp;&nbsp;Investment Securities Losses, Net | (1126) | (1601) | (2733) | (3098) |
| &nbsp;&nbsp;&nbsp;Other | 5322 | 3959 | 10396 | 9129 |
| **Total Noninterest Income** | 44795 | 42087 | 88853 | 84372 |
| Noninterest Expense |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Salaries and Benefits | 61308 | 57033 | 124192 | 115248 |
| &nbsp;&nbsp;&nbsp;Net Occupancy | 10499 | 10559 | 21058 | 21015 |
| &nbsp;&nbsp;&nbsp;Net Equipment | 9977 | 10355 | 20169 | 20458 |
| &nbsp;&nbsp;&nbsp;Data Processing | 5456 | 4745 | 10723 | 9515 |
| &nbsp;&nbsp;&nbsp;Professional Fees | 4263 | 4929 | 8527 | 9606 |
| &nbsp;&nbsp;&nbsp;FDIC Insurance | 3640 | 7170 | 5282 | 10784 |
| &nbsp;&nbsp;&nbsp;Other | 15640 | 14435 | 31291 | 28459 |
| **Total Noninterest Expense** | 110783 | 109226 | 221242 | 215085 |
| Income Before Provision for Income Taxes | 60445 | 45307 | 116601 | 93671 |
| Provision for Income Taxes | 12808 | 11224 | 24979 | 23197 |
| **Net Income** | $47637 | $34083 | $91622 | $70474 |
| Preferred Stock Dividends | 5269 | 1969 | 10538 | 3938 |
| **Net Income Available to Common Shareholders** | $42368 | $32114 | $81084 | $66536 |
| Basic Earnings Per Common Share | $1.07 | $0.81 | $2.05 | $1.69 |
| Diluted Earnings Per Common Share | $1.06 | $0.81 | $2.03 | $1.68 |
| Dividends Declared Per Common Share | $0.70 | $0.70 | $1.40 | $1.40 |
| Basic Weighted Average Common Shares | 39622998 | 39450551 | 39588916 | 39400452 |
| Diluted Weighted Average Common Shares | 39895093 | 39618705 | 39888294 | 39618774 |

---

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

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**Bank of Hawaii Corporation and Subsidiaries**

**Consolidated Statements of Comprehensive Income (Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(dollars in thousands) | **2025** | **2024** | **2025** | **2024** |
| Net Income | $47637 | $34083 | $91622 | $70474 |
| Other Comprehensive Income, Net of Tax: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net Change in Unrealized Gains on Investment Securities | 18970 | 9052 | 43730 | 21990 |
| &nbsp;&nbsp;&nbsp;Net Change in Defined Benefit Plans | 233 | 168 | 465 | 337 |
| Other Comprehensive Income | 19203 | 9220 | 44195 | 22327 |
| Comprehensive Income | $66840 | $43303 | $135817 | $92801 |

---

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

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**Bank of Hawaii Corporation and Subsidiaries**

**Consolidated Statements of Shareholders' Equity (Unaudited)**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| (dollars in thousands, except per share amounts) | **Preferred Shares Series A Outstanding** | **Preferred Series A Stock** | **Preferred Shares Series B Outstanding** | **Preferred Series B Stock** | **Common Shares Outstanding** | **Common Stock** | **Capital Surplus** | **Accum. Other Comprehensive Income (Loss)** | **Retained Earnings** | **Treasury Stock** | **Total** |
| **Three Months Ended June 30, 2025** |  |  |  |  |  |  |  |  |  |  |  |
| **Balance as of March 31, 2025** | 180000 | $180000 | 165000 | $165000 | 39734304 | $586 | $651374 | $(318397) | $2144326 | $(1117954) | $1704935 |
| Net Income |  |  |  |  |  |  |  |  | 47637 |  | 47637 |
| Other Comprehensive Income |  |  |  |  |  |  |  | 19203 |  |  | 19203 |
| Share-Based Compensation |  |  |  |  |  |  | 3837 |  |  |  | 3837 |
| Common Stock Issued under Purchase and Equity Compensation Plans |  |  |  |  | 36429 | 1 | 268 |  |  | 1025 | 1294 |
| Common Stock Repurchased |  |  |  |  | (5358) |  |  |  |  | (286) | (286) |
| Cash Dividends Declared Common Stock ($0.70 per share) |  |  |  |  |  |  |  |  | (28244) |  | (28244) |
| Cash Dividends Declared Preferred Stock |  |  |  |  |  |  |  |  | (5269) |  | (5269) |
| **Balance as of June 30, 2025** | 180000 | $180000 | 165000 | $165000 | 39765375 | $587 | $655479 | $(299194) | $2158450 | $(1117215) | $1743107 |
| **Three Months Ended June 30, 2024** |  |  |  |  |  |  |  |  |  |  |  |
| **Balance as of March 31, 2024** | 180000 | $180000 |  | $— | 39720724 | $584 | $640663 | $(383581) | $2114729 | $(1116418) | $1435977 |
| Net Income |  |  |  |  |  |  |  |  | 34083 |  | 34083 |
| Other Comprehensive Income |  |  |  |  |  |  |  | 9220 |  |  | 9220 |
| Share-Based Compensation |  |  |  |  |  |  | 3475 |  |  |  | 3475 |
| Preferred Stock Issued, Net |  |  | 165000 | 165000 |  |  | (4386) |  |  |  | 160614 |
| Common Stock Issued under Purchase and Equity Compensation Plans |  |  |  |  | 36640 | 1 | 89 |  | 358 | 737 | 1185 |
| Common Stock Repurchased |  |  |  |  | (27423) |  |  |  |  | (1675) | (1675) |
| Cash Dividends Declared Common Stock ($0.70 per share) |  |  |  |  |  |  |  |  | (28061) |  | (28061) |
| Cash Dividends Declared Preferred Stock |  |  |  |  |  |  |  |  | (1969) |  | (1969) |
| **Balance as of June 30, 2024** | 180000 | $180000 | 165000 | $165000 | 39729941 | $585 | $639841 | $(374361) | $2119140 | $(1117356) | $1612849 |

---

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

**Bank of Hawaii Corporation and Subsidiaries**

**Consolidated Statements of Shareholders' Equity (continued) (Unaudited)**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| (dollars in thousands, except per share amounts) | **Preferred Shares Series A Outstanding** | **Preferred Series A Stock** | **Preferred Shares Series B Outstanding** | **Preferred Series B Stock** | **Common Shares Outstanding** | **Common Stock** | **Capital Surplus** | **Accum. Other Comprehensive Income (Loss)** | **Retained Earnings** | **Treasury Stock** | **Total** |
| **Six Months Ended June 30, 2025** |  |  |  |  |  |  |  |  |  |  |  |
| **Balance as of December 31, 2024** | 180000 | $180000 | 165000 | $165000 | 39762255 | $585 | $647403 | $(343389) | $2133838 | $(1115663) | $1667774 |
| Net Income |  |  |  |  |  |  |  |  | 91622 |  | 91622 |
| Other Comprehensive Income |  |  |  |  |  |  |  | 44195 |  |  | 44195 |
| Share-Based Compensation |  |  |  |  |  |  | 7517 |  |  |  | 7517 |
| Common Stock Issued under Purchase and Equity Compensation Plans |  |  |  |  | 55906 | 2 | 559 |  |  | 2048 | 2609 |
| Common Stock Repurchased |  |  |  |  | (52786) |  |  |  |  | (3600) | (3600) |
| Cash Dividends Declared Common Stock ($1.40 per share) |  |  |  |  |  |  |  |  | (56472) |  | (56472) |
| Cash Dividends Declared Preferred Stock |  |  |  |  |  |  |  |  | (10538) |  | (10538) |
| **Balance as of June 30, 2025** | 180000 | $180000 | 165000 | $165000 | 39765375 | $587 | $655479 | $(299194) | $2158450 | $(1117215) | $1743107 |
| **Six Months Ended June 30, 2024** |  |  |  |  |  |  |  |  |  |  |  |
| **Balance as of December 31, 2023** | 180000 | $180000 |  | $— | 39753138 | $583 | $636422 | $(396688) | $2107569 | $(1113644) | $1414242 |
| Net Income |  |  |  |  |  |  |  |  | 70474 |  | 70474 |
| Other Comprehensive Income |  |  |  |  |  |  |  | 22327 |  |  | 22327 |
| Share-Based Compensation |  |  |  |  |  |  | 7505 |  |  |  | 7505 |
| Preferred Stock Issued, Net |  |  | 165000 | 165000 |  |  | (4386) |  |  |  | 160614 |
| Common Stock Issued under Purchase and Equity Compensation Plans |  |  |  |  | 57972 | 2 | 300 |  | 1152 | 1283 | 2737 |
| Common Stock Repurchased |  |  |  |  | (81169) |  |  |  |  | (4995) | (4995) |
| Cash Dividends Declared Common Stock ($1.40 per share) |  |  |  |  |  |  |  |  | (56117) |  | (56117) |
| Cash Dividends Declared Preferred Stock |  |  |  |  |  |  |  |  | (3938) |  | (3938) |
| **Balance as of June 30, 2024** | 180000 | $180000 | 165000 | $165000 | 39729941 | $585 | $639841 | $(374361) | $2119140 | $(1117356) | $1612849 |

---

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

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**Bank of Hawaii Corporation and Subsidiaries**

**Consolidated Statements of Cash Flows (Unaudited)**

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(dollars in thousands) | **2025** | **2024** |
| **Operating Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Net Income | $91622 | $70474 |
| &nbsp;&nbsp;&nbsp;Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for Credit Losses | 6500 | 4400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and Amortization | 9421 | 10388 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of Deferred Loan and Lease (Fees) Costs, Net | (672) | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization and Accretion of Premiums/Discounts on Investment Securities, Net | 5871 | 6229 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of Operating Lease Right-of-Use Assets | 5735 | 5868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-Based Compensation | 7517 | 7505 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefit Plan Contributions | (1023) | (1057) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Gains on Sales of Loans and Leases | (1302) | (1055) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from Sales of Loans Held for Sale | 12957 | 21355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Originations of Loans Held for Sale | (12590) | (20750) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Change in Other Assets and Other Liabilities | (24036) | (2362) |
| &nbsp;&nbsp;&nbsp;**Net Cash Provided by Operating Activities** | 100000 | 101064 |
| **Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Investment Securities Available-for-Sale: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from Prepayments and Maturities | 148483 | 107158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases | (517104) | (1097) |
| &nbsp;&nbsp;&nbsp;Investment Securities Held-to-Maturity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from Prepayments and Maturities | 184959 | 192708 |
| &nbsp;&nbsp;&nbsp;Net Change in Loans and Leases | 58108 | 130649 |
| &nbsp;&nbsp;&nbsp;Purchases of Premises and Equipment | (17162) | (7852) |
| &nbsp;&nbsp;&nbsp;**Net Cash (Used in) Provided by Investing Activities** | (142716) | 421566 |
| **Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Net Change in Deposits | 165877 | (646542) |
| &nbsp;&nbsp;&nbsp;Repayments of Long-Term Debt | (50048) | (50054) |
| &nbsp;&nbsp;&nbsp;Proceeds from Issuance of Preferred Stock |  | 160614 |
| &nbsp;&nbsp;&nbsp;Proceeds from Issuance of Common Stock | 2609 | 2796 |
| &nbsp;&nbsp;&nbsp;Repurchase of Common Stock | (3600) | (4995) |
| &nbsp;&nbsp;&nbsp;Cash Dividends Paid on Common Stock | (56472) | (56117) |
| &nbsp;&nbsp;&nbsp;Cash Dividends Paid on Preferred Stock | (10538) | (3938) |
| &nbsp;&nbsp;&nbsp;**Net Cash Provided by (Used in) Financing Activities** | 47828 | (598236) |
| Net Change in Cash and Cash Equivalents | 5112 | (75606) |
| Cash and Cash Equivalents at Beginning of Period | 763571 | 1000944 |
| **Cash and Cash Equivalents at End of Period** | $768683 | $925338 |
| **Supplemental Information** |  |  |
| &nbsp;&nbsp;&nbsp;Cash Paid for Interest | $185398 | $198847 |
| &nbsp;&nbsp;&nbsp;Cash Paid for Income Taxes | 11200 | 18735 |
| &nbsp;&nbsp;&nbsp;Non-Cash Investing and Financing Activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer from Loans to Foreclosed Real Estate | 217 | 574 |

---

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

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**Bank of Hawaii Corporation and Subsidiaries**

**Notes to Consolidated Financial Statements**

**(Unaudited)**

**Note 1. Summary of Significant Accounting Policies**

*Basis of Presentation*

Bank of Hawaii Corporation (the "Parent") is a Delaware corporation and a bank holding company headquartered in Honolulu, Hawai'i. Bank of Hawaii Corporation and its subsidiaries (collectively, the "Company"), provide a broad range of financial products and services to customers in Hawai'i, Guam and other Pacific Islands. The majority of the Company's operations consist of customary commercial and consumer banking services including, but not limited to, lending, leasing, deposit services, trust and investment activities, brokerage services, and trade financing. The accompanying Unaudited Consolidated Financial Statements include the accounts of the Parent and its subsidiaries. The Parent's principal operating subsidiary is Bank of Hawai'i (the "Bank").

The Consolidated Financial Statements in this report have not been audited by an independent registered public accounting firm, but, in the opinion of management, reflect all adjustments necessary for a fair presentation of the results for the interim periods. All such adjustments are of a normal recurring nature. Intercompany accounts and transactions have been eliminated in consolidation. Certain prior period information has been reclassified to conform to the current period presentation. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for the full fiscal year or any future period.

The accompanying Unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and accompanying notes required by GAAP for complete financial statements and should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Significant changes to accounting policies from those disclosed in our audited Consolidated Financial Statements and related notes included in the Company's Annual Report on Form 10-K are presented below.

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

*Accounting Standards Pending Adoption*

In November 2024, the FASB issued ASU 2024-03, "Disaggregation of Income Statement Expenses (DISE)." ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement to be presented in a tabular format in the footnotes to the financial statements. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The amendments in ASU 2024-03 should be applied on a prospective basis, although retrospective application is permitted. ASU 2024-03 is not expected to have a material impact on the Company's financial statements.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**Note 2. Investment Securities**

The amortized cost, gross unrealized gains and losses, and fair value of the Company's investment securities as of June 30, 2025 and December 31, 2024, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Amortized Cost** | **Gross Unrealized Gains** | **Gross Unrealized Losses** | **Fair Value** |
| **June 30, 2025** |  |  |  |  |
| **Available-for-Sale:** |  |  |  |  |
| Debt Securities Issued by the U.S. Treasury and Government Agencies | $248373 | $462 | $(5120) | $243715 |
| Debt Securities Issued by States and Political Subdivisions | 72943 |  | (6983) | 65960 |
| Debt Securities Issued by U.S. Government-Sponsored Enterprises | 1005 |  | (20) | 985 |
| Debt Securities Issued by Corporations | 752354 | 1640 | (25152) | 728842 |
| Collateralized Mortgage Obligations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises | 1191950 | 877 | (95458) | 1097369 |
| &nbsp;&nbsp;&nbsp;Commercial - Government Agencies or Sponsored Enterprises | 354093 | 535 | (22167) | 332461 |
| &nbsp;&nbsp;&nbsp;Commercial - Non-Agency | 35968 | 50 | (11) | 36007 |
| Total Collateralized Mortgage Obligations | 1582011 | 1462 | (117636) | 1465837 |
| Mortgage-Backed Securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises | 657288 | 912 | (52035) | 606165 |
| Total Mortgage-Backed Securities | 657288 | 912 | (52035) | 606165 |
| **Total** | $3313974 | $4476 | $(206946) | $3111504 |
| **Held-to-Maturity:** |  |  |  |  |
| Debt Securities Issued by the U.S. Treasury and Government Agencies | $131932 | $— | $(10754) | $121178 |
| Debt Securities Issued by Corporations | 10354 |  | (1827) | 8527 |
| Collateralized Mortgage Obligations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises | 2092255 | 3 | (325650) | 1766608 |
| &nbsp;&nbsp;&nbsp;Commercial - Government Agencies or Sponsored Enterprises | 411848 |  | (83013) | 328835 |
| Total Collateralized Mortgage Obligations | 2504103 | 3 | (408663) | 2095443 |
| Mortgage-Backed Securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises | 1784975 | 69 | (263552) | 1521492 |
| &nbsp;&nbsp;&nbsp;Commercial - Government Agencies or Sponsored Enterprises | 9989 |  | (1835) | 8154 |
| Total Mortgage-Backed Securities | 1794964 | 69 | (265387) | 1529646 |
| **Total** | $4441353 | $72 | $(686631) | $3754794 |

---

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Amortized Cost** | **Gross Unrealized Gains** | **Gross Unrealized Losses** | **Fair Value** |
| **December 31, 2024** |  |  |  |  |
| **Available-for-Sale:** |  |  |  |  |
| Debt Securities Issued by the U.S. Treasury and Government Agencies | $257036 | $221 | $(8185) | $249072 |
| Debt Securities Issued by States and Political Subdivisions | 73208 |  | (9349) | 63859 |
| Debt Securities Issued by U.S. Government-Sponsored Enterprises | 1505 |  | (41) | 1464 |
| Debt Securities Issued by Corporations | 703579 | 376 | (32280) | 671675 |
| Collateralized Mortgage Obligations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises | 1050299 | 322 | (115401) | 935220 |
| &nbsp;&nbsp;&nbsp;Commercial - Government Agencies or Sponsored Enterprises | 306696 | 199 | (23421) | 283474 |
| Total Collateralized Mortgage Obligations | 1356995 | 521 | (138822) | 1218694 |
| Mortgage-Backed Securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises | 555092 | 130 | (70458) | 484764 |
| Total Mortgage-Backed Securities | 555092 | 130 | (70458) | 484764 |
| **Total** | $2947415 | $1248 | $(259135) | $2689528 |
| **Held-to-Maturity:** |  |  |  |  |
| Debt Securities Issued by the U.S. Treasury and Government Agencies | $131868 | $— | $(14927) | $116941 |
| Debt Securities Issued by Corporations | 10490 |  | (2156) | 8334 |
| Collateralized Mortgage Obligations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises | 2185210 | 3 | (377149) | 1808064 |
| &nbsp;&nbsp;&nbsp;Commercial - Government Agencies or Sponsored Enterprises | 416389 |  | (92211) | 324178 |
| Total Collateralized Mortgage Obligations | 2601599 | 3 | (469360) | 2132242 |
| Mortgage-Backed Securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises | 1864591 | 37 | (309093) | 1555535 |
| &nbsp;&nbsp;&nbsp;Commercial - Government Agencies or Sponsored Enterprises | 9995 |  | (2165) | 7830 |
| Total Mortgage-Backed Securities | 1874586 | 37 | (311258) | 1563365 |
| **Total** | $4618543 | $40 | $(797701) | $3820882 |

---

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 $10.5 million and $9.0 million as of June 30, 2025 and December 31, 2024, respectively. For held-to-maturity ("HTM") debt securities, AIR totaled $8.3 million and $8.6 million as of June 30, 2025 and December 31, 2024, respectively.

The following table presents an analysis of the contractual maturities of the Company's investment securities as of June 30, 2025. Debt securities issued by government agencies (such as Small Business Administration securities), collateralized mortgage obligations, and mortgage-backed securities are disclosed separately in the following table as these investment securities may prepay prior to their scheduled contractual maturity dates.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

---

| | | |
|:---|:---|:---|
| (dollars in thousands) | **Amortized Cost** | **Fair Value** |
| **Available-for-Sale:** |  |  |
| Due in One Year or Less | $126856 | $124752 |
| Due After One Year Through Five Years | 629712 | 615325 |
| Due After Five Years Through Ten Years | 208634 | 189655 |
|  | 965202 | 929732 |
| Debt Securities Issued by Government Agencies | 109473 | 109770 |
| Collateralized Mortgage Obligations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Agencies | 1191950 | 1097369 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial - Government Agencies or Sponsored Agencies | 354093 | 332461 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial - Non-Agency | 35968 | 36007 |
| Total Collateralized Mortgage Obligations | 1582011 | 1465837 |
| Mortgage-Backed Securities: |  |  |
| &nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Agencies | 657288 | 606165 |
| Total Mortgage-Backed Securities | 657288 | 606165 |
| **Total** | $3313974 | $3111504 |
| **Held-to-Maturity:** |  |  |
| &nbsp;&nbsp;&nbsp;Due in One Year or Less | $7500 | $7411 |
| &nbsp;&nbsp;&nbsp;Due After One Year Through Five Years | 74843 | 70099 |
| &nbsp;&nbsp;&nbsp;Due After Five Year Through Ten Years | 59943 | 52195 |
|  | 142286 | 129705 |
| Collateralized Mortgage Obligations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Agencies | 2092255 | 1766608 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial - Government Agencies or Sponsored Agencies | 411848 | 328835 |
| Total Collateralized Mortgage Obligations | 2504103 | 2095443 |
| Mortgage-Backed Securities: |  |  |
| &nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Agencies | 1784975 | 1521492 |
| &nbsp;&nbsp;&nbsp;Commercial - Government Agencies or Sponsored Agencies | 9989 | 8154 |
| Total Mortgage-Backed Securities | 1794964 | 1529646 |
| **Total** | $4441353 | $3754794 |

---

Investment securities with carrying values of $7.3 billion and $7.2 billion as of June 30, 2025 and December 31, 2024, respectively, were pledged to secure deposits of governmental entities, securities sold under agreements to repurchase, support the Company's borrowing capacity with the Federal Reserve Bank, and secure derivative transactions.

During the three months ended June 30, 2025 and 2024, the Company recognized net realized losses on sales of investments of $1.1 million and $1.6 million, respectively. During the six months ended June 30, 2025 and 2024, the Company recognized net realized losses on sales of investments of $2.7 million and $3.1 million, respectively. The losses on sales of

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

investment securities were due to fees paid to the counterparties of the Company's prior Visa Class B share sale transactions, which are expensed as incurred.

The following table summarizes the Company's AFS debt securities in an unrealized loss position for which an allowance for credit losses was not deemed necessary, aggregated by major security type and length of time in a continuous unrealized loss position:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Less Than 12 Months** | **Less Than 12 Months** | **12 Months or Longer** | **12 Months or Longer** | **Total** | **Total** |
|<br>(dollars in thousands) | **Fair Value** | **Gross Unrealized Losses** | **Fair Value** | **Gross Unrealized Losses** | **Fair Value** | **Gross Unrealized Losses** |
| **June 30, 2025** |  |  |  |  |  |  |
| **Available-for-Sale:** |  |  |  |  |  |  |
| Debt Securities Issued by the U.S. Treasury and Government Agencies | $44920 | $(787) | $101097 | $(4333) | $146017 | $(5120) |
| Debt Securities Issued by States and Political Subdivisions |  |  | 65560 | (6983) | 65560 | (6983) |
| Debt Securities Issued by U.S. Government- Sponsored Enterprises |  |  | 985 | (20) | 985 | (20) |
| Debt Securities Issued by Corporations | 171062 | (7201) | 456022 | (17951) | 627084 | (25152) |
| Collateralized Mortgage Obligations: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises | 266073 | (7996) | 591331 | (87462) | 857404 | (95458) |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial - Government Agencies or Sponsored Enterprises | 71066 | (148) | 150308 | (22019) | 221374 | (22167) |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial - Non-Agency | 4989 | (11) |  |  | 4989 | (11) |
| Total Collateralized Mortgage Obligations | 342128 | (8155) | 741639 | (109481) | 1083767 | (117636) |
| Mortgage-Backed Securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises | 218210 | (25635) | 254994 | (26400) | 473204 | (52035) |
| Total Mortgage-Backed Securities | 218210 | (25635) | 254994 | (26400) | 473204 | (52035) |
| **Total** | $776320 | $(41778) | $1620297 | $(165168) | $2396617 | $(206946) |
| **December 31, 2024** |  |  |  |  |  |  |
| **Available-for-Sale:** |  |  |  |  |  |  |
| Debt Securities Issued by the U.S. Treasury and Government Agencies | $38854 | $(288) | $157456 | $(7897) | $196310 | $(8185) |
| Debt Securities Issued by States and Political Subdivisions |  |  | 63644 | (9349) | 63644 | (9349) |
| Debt Securities Issued by U.S. Government-Sponsored Enterprises |  |  | 1464 | (41) | 1464 | (41) |
| Debt Securities Issued by Corporations | 24892 | (108) | 546407 | (32172) | 571299 | (32280) |
| Collateralized Mortgage Obligations: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises | 153104 | (275) | 673141 | (115126) | 826245 | (115401) |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial - Government Agencies or Sponsored Enterprises | 92485 | (5) | 128430 | (23416) | 220915 | (23421) |
| Total Collateralized Mortgage Obligations | 245589 | (280) | 801571 | (138542) | 1047160 | (138822) |
| Mortgage-Backed Securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises | 135 |  | 480189 | (70458) | 480324 | (70458) |
| Total Mortgage-Backed Securities | 135 |  | 480189 | (70458) | 480324 | (70458) |
| **Total** | $309470 | $(676) | $2050731 | $(258459) | $2360201 | $(259135) |

---

The Company does not believe the AFS debt securities that were in an unrealized loss position represent a credit loss impairment. As of June 30, 2025 and December 31, 2024, the Company's unrealized losses from AFS debt securities were generated from 365 positions and 386 positions, respectively. As of June 30, 2025 and December 31, 2024, total gross

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

unrealized losses were attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. Mortgage-backed securities issued by U.S. government agencies or U.S. government-sponsored enterprises carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. Debt securities and non-agency collateralized mortgage obligations issued by corporations are of high credit quality and the issuers continue to make timely principal and interest payments. The Company does not intend to sell the investment securities that were in an unrealized loss position and it is more likely than not that the Company will not be required to sell the investment securities before recovery of their amortized cost basis, which may be at maturity.

Substantially all of the Company's HTM debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. Therefore, the Company did not record an allowance for credit losses for these securities as of June 30, 2025 and December 31, 2024.

Interest income from taxable and non-taxable investment securities for the three and six months ended June 30, 2025 and 2024 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(dollars in thousands) | **2025** | **2024** | **2025** | **2024** |
| Taxable | $46385 | $43057 | $90664 | $86943 |
| Non-Taxable | 457 | 6 | 837 | 13 |
| Total Interest Income from Investment Securities | $46842 | $43063 | $91501 | $86956 |

---

**Note 3. Loans and Leases and the Allowance for Credit Losses**

*Loans and Leases*

The Company's loan and lease portfolio was comprised of the following as of June 30, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
| (dollars in thousands) | **June 30, 2025** | **December 31, 2024** |
| Commercial |  |  |
| &nbsp;&nbsp;&nbsp;Commercial Mortgage | $4038956 | $4020622 |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial | 1597560 | 1705133 |
| &nbsp;&nbsp;&nbsp;Construction | 374768 | 308898 |
| &nbsp;&nbsp;&nbsp;Lease Financing | 92842 | 90756 |
| Total Commercial | 6104126 | 6125409 |
| Consumer |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | 4637014 | 4628283 |
| &nbsp;&nbsp;&nbsp;Home Equity | 2139025 | 2165514 |
| &nbsp;&nbsp;&nbsp;Automobile | 715688 | 764146 |
| &nbsp;&nbsp;&nbsp;Other | 406325 | 392628 |
| Total Consumer | 7898052 | 7950571 |
| **Total Loans and Leases** | $14002178 | $14075980 |

---

The majority of the Company's lending activity is with customers located within the State of Hawai'i. A substantial portion of the Company's real estate loans are secured by real estate located within the State of Hawai'i.

The Company elected to exclude AIR from the amortized cost basis of loans and leases disclosed throughout this footnote. As of June 30, 2025 and December 31, 2024, AIR for loans totaled $48.2 million and $48.4 million, respectively.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

*Allowance for Credit Losses (the "Allowance")*

The following presents by portfolio segment, the activity in the Allowance for the three and six months ended June 30, 2025 and 2024.

---

| | | | |
|:---|:---|:---|:---|
| (dollars in thousands) | **Commercial** | **Consumer** | **Total** |
| **Three Months Ended June 30, 2025** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Allowance for Credit Losses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance at Beginning of Period | $80628 | $67079 | $147707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans and Leases Charged-Off | (206) | (3805) | (4011) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries on Loans and Leases Previously Charged-Off | 78 | 1315 | 1393 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Loans and Leases Charged-Off | (128) | (2490) | (2618) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for Credit Losses | (1598) | 5052 | 3454 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance at End of Period | $78902 | $69641 | $148543 |
| **Six Months Ended June 30, 2025** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Allowance for Credit Losses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance at Beginning of Period | $83900 | $64628 | $148528 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans and Leases Charged-Off | (1605) | (8115) | (9720) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries on Loans and Leases Previously Charged-Off | 155 | 2544 | 2699 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Loans and Leases Charged-Off | (1450) | (5571) | (7021) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for Credit Losses | (3548) | 10584 | 7036 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance at End of Period | $78902 | $69641 | $148543 |
| **Three Months Ended June 30, 2024** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Allowance for Credit Losses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance at Beginning of Period | $75087 | $72577 | $147664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans and Leases Charged-Off | (875) | (3955) | (4830) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries on Loans and Leases Previously Charged-Off | 263 | 1174 | 1437 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Loans and Leases Charged-Off | (612) | (2781) | (3393) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for Credit Losses | 5610 | (2404) | 3206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance at End of Period | $80085 | $67392 | $147477 |
| **Six Months Ended June 30, 2024** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Allowance for Credit Losses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance at Beginning of Period | $74074 | $72329 | $146403 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans and Leases Charged-Off | (1235) | (7350) | (8585) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries on Loans and Leases Previously Charged-Off | 379 | 2532 | 2911 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Loans and Leases Charged-Off | (856) | (4818) | (5674) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for Credit Losses | 6867 | (119) | 6748 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance at End of Period | $80085 | $67392 | $147477 |

---

*Credit Quality Indicators*

The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company uses an internal credit risk rating system that categorizes loans and leases into pass, special mention, or classified categories. Credit risk ratings are applied individually to those classes of loans and leases that have significant or unique credit characteristics that benefit from a case-by-case evaluation. These are typically loans and leases to businesses or individuals in the classes which comprise the commercial portfolio segment. Groups of loans and leases that are underwritten and structured using standardized criteria and characteristics are typically monitored and risk-rated collectively. These are typically loans and leases to individuals in the classes which comprise the consumer portfolio segment.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

The following are the definitions of the Company's credit quality indicators:

---

| | |
|:---|:---|
| Pass: | Loans and leases in all classes within the commercial and consumer portfolio segments that are not adversely rated, are generally contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan or lease agreement. Residential mortgage loans that are past due 90 days or more as to principal or interest may be considered Pass if the current loan-to-value ratio is 60% or less. Home equity loans that are past due 90 days or more as to principal or interest may be considered Pass if: a) the home equity loan is in first lien position and the current loan-to-value ratio is 60% or less; or b) the first mortgage is with the Company and the current combined loan-to-value ratio is 60% or less. |
| Special Mention: | Loans and leases in the classes within the commercial portfolio segment that have potential weaknesses that warrant management's close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease. The Special Mention credit quality indicator is not used for the consumer portfolio segment. |
| Classified: | Loans and leases in the classes within the commercial portfolio segment that have a well-defined weakness or weaknesses and are inadequately protected by the sound worth and paying capacity of the borrower or applicable collateral, if any. Classified loans and leases are also those in the classes within the consumer portfolio segment that are past due 90 days or more as to principal or interest (excluding residential mortgage and home equity loans which meet the criteria for being considered Pass). |

---

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

For Pass rated credits in the commercial portfolio, most risk ratings are certified at a minimum annually. For Special Mention or Classified credits in the commercial portfolio, risk ratings are reviewed for appropriateness on an ongoing basis, monthly, or at a minimum, quarterly. The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company's loans and leases as of June 30, 2025.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Term Loans by Origination Year** | **Term Loans by Origination Year** | **Term Loans by Origination Year** | **Term Loans by Origination Year** | **Term Loans by Origination Year** | **Term Loans by Origination Year** | | | |
|<br>(dollars in thousands) | **2025**<sup>1</sup> | **2024** | **2023** | **2022** | **2021** | **Prior** |<br>**Revolving Loans** |<br>**Revolving Loans Converted to Term Loans** |<br>**Total Loans and Leases** |
| **June 30, 2025** |  |  |  |  |  |  |  |  |  |
| Commercial |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial Mortgage |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $311692 | $308025 | $690377 | $944637 | $575409 | $974842 | $37965 | $— | $3842947 |
| &nbsp;&nbsp;Special Mention | 83617 |  |  | 1890 |  | 1845 |  |  | 87352 |
| &nbsp;&nbsp;Classified |  | 35634 | 13645 | 26973 | 3073 | 29332 |  |  | 108657 |
| &nbsp;&nbsp;&nbsp;Total Commercial Mortgage | $395309 | $343659 | $704022 | $973500 | $578482 | $1006019 | $37965 | $— | $4038956 |
| &nbsp;&nbsp;Gross Charge-Offs |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $93593 | $327519 | $267249 | $214822 | $139078 | $144580 | $334342 | $290 | $1521473 |
| &nbsp;&nbsp;Special Mention |  | 413 |  |  |  | 24 | 36338 |  | 36775 |
| &nbsp;&nbsp;Classified | 5275 | 588 | 14889 | 2228 | 2328 | 5087 | 8915 | 2 | 39312 |
| &nbsp;&nbsp;&nbsp;Total Commercial and Industrial | $98868 | $328520 | $282138 | $217050 | $141406 | $149691 | $379595 | $292 | $1597560 |
| &nbsp;&nbsp;Gross Charge-Offs | 165 | 139 |  |  |  | 1301 |  |  | 1605 |
| &nbsp;&nbsp;&nbsp;Construction |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $24822 | $115965 | $152293 | $67613 | $2361 | $— | $8935 | $— | $371989 |
| &nbsp;&nbsp;Classified | 1483 |  |  | 1296 |  |  |  |  | 2779 |
| &nbsp;&nbsp;&nbsp;Total Construction | $26305 | $115965 | $152293 | $68909 | $2361 | $— | $8935 | $— | $374768 |
| &nbsp;&nbsp;Gross Charge-Offs |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Lease Financing |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $12443 | $47466 | $7229 | $7497 | $7306 | $9990 | $— | $— | $91931 |
| &nbsp;&nbsp;Classified |  |  | 433 | 29 | 65 | 384 |  |  | 911 |
| &nbsp;&nbsp;&nbsp;Total Lease Financing | $12443 | $47466 | $7662 | $7526 | $7371 | $10374 | $— | $— | $92842 |
| &nbsp;&nbsp;Gross Charge-Offs |  |  |  |  |  |  |  |  |  |
| Total Commercial | $532925 | $835610 | $1146115 | $1266985 | $729620 | $1166084 | $426495 | $292 | $6104126 |
| &nbsp;&nbsp;Total Commercial Gross Charge-Offs | 165 | 139 |  |  |  | 1301 |  |  | 1605 |
| Consumer |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $186182 | $254063 | $254373 | $731407 | $1151789 | $2052578 | $— | $— | $4630392 |
| &nbsp;&nbsp;Classified |  |  | 972 | 1828 |  | 3822 |  |  | 6622 |
| &nbsp;&nbsp;&nbsp;Total Residential Mortgage | $186182 | $254063 | $255345 | $733235 | $1151789 | $2056400 | $— | $— | $4637014 |
| &nbsp;&nbsp;Gross Charge-Offs |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Home Equity |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $— | $— | $— | $— | $— | $39 | $2073815 | $60741 | $2134595 |
| &nbsp;&nbsp;Classified |  |  |  |  |  |  | 3740 | 690 | 4430 |
| &nbsp;&nbsp;&nbsp;Total Home Equity | $— | $— | $— | $— | $— | $39 | $2077555 | $61431 | $2139025 |
| &nbsp;&nbsp;Gross Charge-Offs |  |  |  |  |  |  | 129 | 101 | 230 |
| &nbsp;&nbsp;&nbsp;Automobile |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $97287 | $184432 | $155827 | $168824 | $70731 | $37906 | $— | $— | $715007 |
| &nbsp;&nbsp;Classified | 40 | 270 | 139 | 152 | 23 | 57 |  |  | 681 |
| &nbsp;&nbsp;&nbsp;Total Automobile | $97327 | $184702 | $155966 | $168976 | $70754 | $37963 | $— | $— | $715688 |
| &nbsp;&nbsp;Gross Charge-Offs | 12 | 575 | 1010 | 728 | 212 | 467 |  |  | 3004 |
| &nbsp;&nbsp;&nbsp;Other |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $85413 | $115458 | $62036 | $74522 | $37821 | $29852 | $594 | $— | $405696 |
| &nbsp;&nbsp;Classified | 2 | 180 | 94 | 182 | 99 | 72 |  |  | 629 |
| &nbsp;&nbsp;&nbsp;Total Other | $85415 | $115638 | $62130 | $74704 | $37920 | $29924 | $594 | $— | $406325 |
| &nbsp;&nbsp;Gross Charge-Offs | 332 | 992 | 1099 | 1242 | 734 | 482 |  |  | 4881 |
| Total Consumer | $368924 | $554403 | $473441 | $976915 | $1260463 | $2124326 | $2078149 | $61431 | $7898052 |
| &nbsp;&nbsp;Total Consumer Gross Charge-Offs | 344 | 1567 | 2109 | 1970 | 946 | 949 | 129 | 101 | 8115 |
| Total Loans and Leases | $901849 | $1390013 | $1619556 | $2243900 | $1990083 | $3290410 | $2504644 | $61723 | $14002178 |
| &nbsp;&nbsp;Total Gross Charge-Offs | 509 | 1706 | 2109 | 1970 | 946 | 2250 | 129 | 101 | 9720 |

---

<sup>1.</sup>Loans reported as Special Mention and Classified in the 2025 column represent amendment of loans that originated in an earlier period.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

During the six months ended June 30, 2025, $7.5 million of revolving loans were converted to term loans.

The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company's loans and leases as of December 31, 2024.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Term Loans by Origination Year** | **Term Loans by Origination Year** | **Term Loans by Origination Year** | **Term Loans by Origination Year** | **Term Loans by Origination Year** | **Term Loans by Origination Year** | | | |
|<br>(dollars in thousands) | **2024**<sup>1</sup> | **2023** | **2022** | **2021** | **2020** | **Prior** |<br>**Revolving Loans** |<br>**Revolving Loans Converted to Term Loans** |<br>**Total Loans and Leases** |
| **December 31, 2024** |  |  |  |  |  |  |  |  |  |
| **Commercial** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Commercial Mortgage |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pass | $401415 | $687580 | $1091627 | $596386 | $405244 | $600386 | $48655 | $— | $3831293 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special Mention |  | 47773 | 1918 | 3348 | 2911 | 15148 |  |  | 71098 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Classified | 35770 | 14491 | 24420 | 3136 | 19609 | 20805 |  |  | 118231 |
| Total Commercial Mortgage | $437185 | $749844 | $1117965 | $602870 | $427764 | $636339 | $48655 | $— | $4020622 |
| Gross Charge-Offs |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Commercial and Industrial |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pass | $356831 | $281168 | $236802 | $146458 | $135158 | $79258 | $375135 | $276 | $1611086 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special Mention | 467 |  |  |  |  |  | 38587 |  | 39054 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Classified | 325 | 15614 | 3483 | 4831 | 6590 | 6427 | 17716 | 7 | 54993 |
| Total Commercial and Industrial | $357623 | $296782 | $240285 | $151289 | $141748 | $85685 | $431438 | $283 | $1705133 |
| Gross Charge-Offs | 362 | 282 |  | 1438 | 128 | 399 |  |  | 2609 |
| &nbsp;&nbsp;Construction |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pass | $89334 | $110153 | $87006 | $1689 | $1279 | $— | $16766 | $— | $306227 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special Mention |  |  | 2671 |  |  |  |  |  | 2671 |
| Total Construction | $89334 | $110153 | $89677 | $1689 | $1279 | $— | $16766 | $— | $308898 |
| Gross Charge-Offs |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Lease Financing |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pass | $49360 | $8174 | $9568 | $9751 | $5244 | $7602 | $— | $— | $89699 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Classified |  | 491 | 37 | 81 | 62 | 386 |  |  | 1057 |
| Total Lease Financing | $49360 | $8665 | $9605 | $9832 | $5306 | $7988 | $— | $— | $90756 |
| Gross Charge-Offs |  |  |  |  |  |  |  |  |  |
| **Total Commercial** | $933502 | $1165444 | $1457532 | $765680 | $576097 | $730012 | $496859 | $283 | $6125409 |
| Total Commercial Gross Charge-Offs | 362 | 282 |  | 1438 | 128 | 399 |  |  | 2609 |
| **Consumer** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Residential Mortgage |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pass | $268330 | $271985 | $751920 | $1180191 | $919280 | $1232582 | $— | $— | $4624288 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Classified |  |  | 858 | 474 | 735 | 1928 |  |  | 3995 |
| Total Residential Mortgage | $268330 | $271985 | $752778 | $1180665 | $920015 | $1234510 | $— | $— | $4628283 |
| Gross Charge-Offs |  |  |  | 337 |  | 48 |  |  | 385 |
| &nbsp;&nbsp;Home Equity |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pass | $— | $— | $— | $— | $— | $40 | $2105833 | $55963 | $2161836 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Classified |  |  |  |  |  |  | 3092 | 586 | 3678 |
| Total Home Equity | $— | $— | $— | $— | $— | $40 | $2108925 | $56549 | $2165514 |
| Gross Charge-Offs |  |  |  |  |  |  | 429 | 272 | 701 |
| &nbsp;&nbsp;Automobile |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pass | $210145 | $187136 | $210207 | $94492 | $34614 | $26777 | $— | $— | $763371 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Classified | 90 | 191 | 224 | 154 | 57 | 59 |  |  | 775 |
| Total Automobile | $210235 | $187327 | $210431 | $94646 | $34671 | $26836 | $— | $— | $764146 |
| Gross Charge-Offs | 227 | 1578 | 1340 | 1083 | 293 | 821 |  |  | 5342 |
| &nbsp;&nbsp;Other |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pass | $133093 | $74068 | $96376 | $52152 | $5149 | $30580 | $533 | $— | $391951 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Classified | 51 | 229 | 246 | 83 |  | 68 |  |  | 677 |
| Total Other | $133144 | $74297 | $96622 | $52235 | $5149 | $30648 | $533 | $— | $392628 |
| Gross Charge-Offs | 1431 | 2151 | 2901 | 1869 | 326 | 1421 |  |  | 10099 |
| **Total Consumer** | $611709 | $533609 | $1059831 | $1327546 | $959835 | $1292034 | $2109458 | $56549 | $7950571 |
| Total Consumer Gross Charge-Offs | 1658 | 3729 | 4241 | 3289 | 619 | 2290 | 429 | 272 | 16527 |
| **Total Loans and Leases** | $1545211 | $1699053 | $2517363 | $2093226 | $1535932 | $2022046 | $2606317 | $56832 | $14075980 |
| Total Gross Charge-Offs | 2020 | 4011 | 4241 | 4727 | 747 | 2689 | 429 | 272 | 19136 |

---

<sup>1.</sup>Loans reported as Special Mention and Classified in the 2024 column represent amendment of loans that originated in an earlier period.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

During the year ended December 31, 2024, $12.7 million of revolving loans were converted to term loans.

*Aging Analysis*

Loans and leases are considered to be past due once becoming 30 days delinquent. For the consumer portfolio, this generally represents two missed monthly payments. The following presents by class, an aging analysis of the Company's loan and lease portfolio as of June 30, 2025 and December 31, 2024.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| (dollars in thousands) | **30 - 59 Days Past Due** | **60 - 89 Days Past Due** | **Past Due 90 Days or More** | **Non-Accrual** | **Total Past Due and Non-Accrual** | **Current** | **Total Loans and Leases** | **Non-Accrual Loans and Leases that are Current** |
| **As of June 30, 2025** |  |  |  |  |  |  |  |  |
| Commercial |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial Mortgage | $— | $— | $— | $2566 | $2566 | $4036390 | $4038956 | $— |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial | 152 | 77 |  | 3744 | 3973 | 1593587 | 1597560 | 383 |
| &nbsp;&nbsp;&nbsp;Construction |  |  |  |  |  | 374768 | 374768 |  |
| &nbsp;&nbsp;&nbsp;Lease Financing |  |  |  |  |  | 92842 | 92842 |  |
| Total Commercial | 152 | 77 |  | 6310 | 6539 | 6097587 | 6104126 | 383 |
| Consumer |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | 3699 | 2791 | 9070 | 5842 | 21402 | 4615612 | 4637014 | 1985 |
| &nbsp;&nbsp;&nbsp;Home Equity | 4807 | 2468 | 1867 | 5387 | 14529 | 2124496 | 2139025 | 1133 |
| &nbsp;&nbsp;&nbsp;Automobile | 15062 | 1361 | 680 |  | 17103 | 698585 | 715688 |  |
| &nbsp;&nbsp;&nbsp;Other | 2029 | 1174 | 630 |  | 3833 | 402492 | 406325 |  |
| Total Consumer | 25597 | 7794 | 12247 | 11229 | 56867 | 7841185 | 7898052 | 3118 |
| **Total** | $25749 | $7871 | $12247 | $17539 | $63406 | $13938772 | $14002178 | $3501 |
| **As of December 31, 2024** |  |  |  |  |  |  |  |  |
| Commercial |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial Mortgage | $— | $— | $— | $2450 | $2450 | $4018172 | $4020622 | $— |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial | 90 | 117 |  | 4627 | 4834 | 1700299 | 1705133 |  |
| &nbsp;&nbsp;&nbsp;Construction |  |  |  |  |  | 308898 | 308898 |  |
| &nbsp;&nbsp;&nbsp;Lease Financing |  |  |  |  |  | 90756 | 90756 |  |
| Total Commercial | 90 | 117 |  | 7077 | 7284 | 6118125 | 6125409 |  |
| Consumer |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | 5184 | 4174 | 3984 | 5052 | 18394 | 4609889 | 4628283 | 424 |
| &nbsp;&nbsp;&nbsp;Home Equity | 6109 | 2753 | 2845 | 4514 | 16221 | 2149293 | 2165514 | 1438 |
| &nbsp;&nbsp;&nbsp;Automobile | 16443 | 1661 | 776 |  | 18880 | 745266 | 764146 |  |
| &nbsp;&nbsp;&nbsp;Other | 2565 | 1076 | 677 |  | 4318 | 388310 | 392628 |  |
| Total Consumer | 30301 | 9664 | 8282 | 9566 | 57813 | 7892758 | 7950571 | 1862 |
| **Total** | $30391 | $9781 | $8282 | $16643 | $65097 | $14010883 | $14075980 | $1862 |

---

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

*Non-Accrual Loans and Leases*

The following presents the non-accrual loans and leases as of June 30, 2025 and December 31, 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|<br>(dollars in thousands) | **Non-Accrual Loans with a Related ACL** | **Non-Accrual Loans without a Related ACL** | **Total Non-Accrual Loans** | **Non-Accrual Loans with a Related ACL** | **Non-Accrual Loans without a Related ACL** | **Total Non-Accrual Loans** |
| Commercial |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial Mortgage | $— | $2566 | $2566 | $— | $2450 | $2450 |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial | 2480 | 1264 | 3744 | 3695 | 932 | 4627 |
| Total Commercial | 2480 | 3830 | 6310 | 3695 | 3382 | 7077 |
| Consumer |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | 5842 |  | 5842 | 5052 |  | 5052 |
| &nbsp;&nbsp;&nbsp;Home Equity | 5387 |  | 5387 | 4514 |  | 4514 |
| Total Consumer | 11229 |  | 11229 | 9566 |  | 9566 |
| **Total** | $13709 | $3830 | $17539 | $13261 | $3382 | $16643 |

---

Payments received while on non-accrual status are normally applied against the principal balance of the loan or lease. Payments may be recognized as income if the full collection of principal and interest is reasonably assured.

*Loan Modifications to Borrowers Experiencing Financial Difficulty*

Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. The following illustrates the most common loan modifications by loan classes offered by the Company:

---

| | |
|:---|:---|
| **Loan Classes** | **Modification Types** |
| Commercial: | Term extension, interest rate reductions, other-than-insignificant payment delay, or combination thereof. These modifications extend the term of the loan, lower the payment amount, or result in an other-than-insignificant payment delay during a defined period for the purpose of providing borrowers additional time to return to compliance with the original loan term. |
| Residential Mortgage/<br>Home Equity: | Forbearance period greater than six months. These modifications require reduced or no payments during the forbearance period for the purpose of providing borrowers additional time to return to compliance with the original loan term. |
| Residential Mortgage/<br>Home Equity: | Term extension and rate adjustment. These modifications extend the term of the loan and provide for an adjustment to the interest rate, which reduces the monthly payment requirement. |
| Automobile/<br>Direct Installment: | Term extension greater than three months. These modifications extend the term of the loan, which reduces the monthly payment requirement. |

---

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during three and six months ended June 30, 2025 and 2024.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Term Extension** | **Payment Delay and Term Extension**<sup>1</sup> | **Term Extension and Interest Rate Reduction** | **Rate Reduction, Payment Delay, and Term Extension** | **Payment Delay** | **Total** | **% of Total Class of Loans and Leases** |
| **Three Months Ended June 30, 2025** |  |  |  |  |  |  |  |
| Commercial |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial | $83 | $— | $— | $— | $— | $83 | 0.01% |
| Total Commercial | 83 |  |  |  |  | 83 | 0.01 |
| Consumer |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | 456 |  |  |  |  | 456 | 0.01 |
| &nbsp;&nbsp;&nbsp;Automobile | 3680 |  |  |  |  | 3680 | 0.51 |
| &nbsp;&nbsp;&nbsp;Other | 431 |  |  |  |  | 431 | 0.11 |
| Total Consumer | 4567 |  |  |  |  | 4567 | 0.06 |
| **Total Loans and Leases** | $4650 | $— | $— | $— | $— | $4650 | 0.03% |
| **Six Months Ended June 30, 2025** |  |  |  |  |  |  |  |
| Commercial |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial Mortgage | $— | $— | $— | $2159 | $— | $2159 | 0.05% |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial | 83 |  |  |  |  | 83 | 0.01 |
| Total Commercial | 83 |  |  | 2159 |  | 2242 | 0.04 |
| Consumer |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | 456 |  | 71 |  |  | 527 | 0.01 |
| &nbsp;&nbsp;&nbsp;Home Equity |  |  | 201 |  |  | 201 | 0.01 |
| &nbsp;&nbsp;&nbsp;Automobile | 7171 |  |  |  |  | 7171 | 1.00 |
| &nbsp;&nbsp;&nbsp;Other | 1053 |  |  |  |  | 1053 | 0.26 |
| Total Consumer | 8680 |  | 272 |  |  | 8952 | 0.11 |
| **Total Loans and Leases** | $8763 | $— | $272 | $2159 | $— | $11194 | 0.08% |
| **Three Months Ended June 30, 2024** |  |  |  |  |  |  |  |
| Consumer |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Home Equity | $— | $— | $— | $— | $537 | $537 | 0.02% |
| &nbsp;&nbsp;&nbsp;Automobile | 4795 | 383 |  |  |  | 5178 | 0.64 |
| &nbsp;&nbsp;&nbsp;Other | 567 | 61 |  |  |  | 628 | 0.16 |
| Total Consumer | 5362 | 444 |  |  | 537 | 6343 | 0.08 |
| **Total Loans and Leases** | $5362 | $444 | $— | $— | $537 | $6343 | 0.05% |
| **Six Months Ended June 30, 2024** |  |  |  |  |  |  |  |
| Commercial |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial | $24 | $4841 | $— | $— | $— | $4865 | 0.29% |
| Total Commercial | 24 | 4841 |  |  |  | 4865 | 0.08 |
| Consumer |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage |  |  |  |  | 14282 | 14282 | 0.31 |
| &nbsp;&nbsp;&nbsp;Home Equity |  |  |  |  | 1147 | 1147 | 0.05 |
| &nbsp;&nbsp;&nbsp;Automobile | 8927 | 1003 |  |  |  | 9930 | 1.23 |
| &nbsp;&nbsp;&nbsp;Other | 957 | 148 |  |  |  | 1105 | 0.28 |
| Total Consumer | 9884 | 1151 |  |  | 15429 | 26464 | 0.33 |
| **Total Loans and Leases** | $9908 | $5992 | $— | $— | $15429 | $31329 | 0.23% |

---

<sup>1.</sup>Includes forbearance plans.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2025 and 2024.

---

| | | | |
|:---|:---|:---|:---|
| (dollars in thousands) | **Weighted-Average Months of Term Extension** | **Weighted-Average Payment Deferral**<sup>1</sup> | **Weighted-Average Interest Rate Reduction** |
| **Three Months Ended June 30, 2025** |  |  |  |
| Commercial |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial | 3 | $— | —% |
| Consumer |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | 75 |  |  |
| &nbsp;&nbsp;&nbsp;Automobile | 22 |  |  |
| &nbsp;&nbsp;&nbsp;Other | 22 |  |  |
| **Six Months Ended June 30, 2025** |  |  |  |
| Commercial |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial Mortgage | 24 | $— | —% |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial | 3 |  |  |
| Consumer |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | 81 |  |  |
| &nbsp;&nbsp;&nbsp;Home Equity | 24 |  |  |
| &nbsp;&nbsp;&nbsp;Automobile | 22 |  |  |
| &nbsp;&nbsp;&nbsp;Other | 22 |  |  |
| **Three Months Ended June 30, 2024** |  |  |  |
| Consumer |  |  |  |
| &nbsp;&nbsp;&nbsp;Home Equity | 0 | $10 | —% |
| &nbsp;&nbsp;&nbsp;Automobile | 22 | 2 |  |
| &nbsp;&nbsp;&nbsp;Other | 22 | 1 |  |
| **Six Months Ended June 30, 2024** |  |  |  |
| Commercial |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial | 12 | $593 | —% |
| Consumer |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | 0 | 13 |  |
| &nbsp;&nbsp;&nbsp;Home Equity | 0 | 7 |  |
| &nbsp;&nbsp;&nbsp;Automobile | 22 | 2 |  |
| &nbsp;&nbsp;&nbsp;Other | 20 | 1 |  |

---

<sup>1</sup>Includes forbearance plans.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

The following table presents the loan modifications made to borrowers experiencing financial difficulty that defaulted during the three and six months ended June 30, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Term Extension** | **Payment Delay & Term Extension**<sup>1</sup> | **Term Extension and Interest Rate Reduction** | **Total** |
| **Three Months Ended June 30, 2025** |  |  |  |  |
| Consumer |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | $— | $— | $71 | $71 |
| &nbsp;&nbsp;&nbsp;Automobile | 430 |  |  | 430 |
| &nbsp;&nbsp;&nbsp;Other | 159 |  |  | 159 |
| Total Consumer | 589 |  | 71 | 660 |
| &nbsp;&nbsp;&nbsp;Total Loans and Leases | $589 | $— | $71 | $660 |
| **Six Months Ended June 30, 2025** |  |  |  |  |
| Consumer |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | $— | $— | $71 | $71 |
| &nbsp;&nbsp;&nbsp;Automobile | 584 |  |  | 584 |
| &nbsp;&nbsp;&nbsp;Other | 187 |  |  | 187 |
| Total Consumer | 771 |  | 71 | 842 |
| &nbsp;&nbsp;&nbsp;Total Loans and Leases | $771 | $— | $71 | $842 |
| **Three Months Ended June 30, 2024** |  |  |  |  |
| Commercial |  |  |  |  |
| &nbsp;&nbsp;Commercial and Industrial | $— | $34 | $— | $34 |
| Total Commercial |  | 34 |  | 34 |
| Consumer |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Automobile | 428 | 11 |  | 439 |
| &nbsp;&nbsp;&nbsp;Other | 121 | 12 |  | 133 |
| Total Consumer | 549 | 23 |  | 572 |
| &nbsp;&nbsp;&nbsp;Total Loans and Leases | $549 | $57 | $— | $606 |
| **Six Months Ended June 30, 2024** |  |  |  |  |
| Commercial |  |  |  |  |
| &nbsp;&nbsp;Commercial and Industrial | $— | $34 | $— | $34 |
| Total Commercial |  | 34 |  | 34 |
| Consumer |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Automobile | 668 | 11 |  | 679 |
| &nbsp;&nbsp;&nbsp;Other | 172 | 12 |  | 184 |
| Total Consumer | 840 | 23 |  | 863 |
| &nbsp;&nbsp;&nbsp;Total Loans and Leases | $840 | $57 | $— | $897 |

---

<sup>1.</sup>Includes forbearance plans.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

The following table presents the aging analysis of loans that have been modified in the last 12 months made to borrowers experiencing financial difficulty as of June 30, 2025 and 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Current** | **30 - 59 Days Past Due** | **60 - 89 Days Past Due** | **Past Due 90 Days or More** | **Non-Accrual** | **Total** |
| **As of June 30, 2025** |  |  |  |  |  |  |
| Commercial |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial Mortgage | $— | $— | $— | $— | $2159 | $2159 |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial | 142 | 9 |  |  |  | 151 |
| Total Commercial | 142 | 9 |  |  | 2159 | 2310 |
| Consumer |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | 71 |  |  |  | 456 | 527 |
| &nbsp;&nbsp;&nbsp;Home Equity | 1102 |  |  |  |  | 1102 |
| &nbsp;&nbsp;&nbsp;Automobile | 10850 | 1714 | 167 | 179 |  | 12910 |
| &nbsp;&nbsp;&nbsp;Other | 1566 | 189 | 94 | 74 |  | 1923 |
| Total Consumer | 13589 | 1903 | 261 | 253 | 456 | 16462 |
| **Total Loans and Leases** | $13731 | $1912 | $261 | $253 | $2615 | $18772 |
| **As of June 30, 2024** |  |  |  |  |  |  |
| Commercial |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial | $4865 | $— | $— | $— | $— | $4865 |
| Total Commercial | 4865 |  |  |  |  | 4865 |
| Consumer |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | 14282 |  |  |  |  | 14282 |
| &nbsp;&nbsp;&nbsp;Home Equity | 1147 |  |  |  |  | 1147 |
| &nbsp;&nbsp;&nbsp;Automobile | 8887 | 998 | 46 |  |  | 9931 |
| &nbsp;&nbsp;&nbsp;Other | 1013 | 43 | 29 | 19 |  | 1104 |
| Total Consumer | 25329 | 1041 | 75 | 19 |  | 26464 |
| **Total Loans and Leases** | $30194 | $1041 | $75 | $19 | $— | $31329 |

---

*Foreclosure Proceedings*

Consumer mortgage loans collateralized by residential real estate property (residential mortgage and home equity) that are in the process of foreclosure totaled $7.2 million and $9.6 million as of June 30, 2025 and December 31, 2024, respectively.

**Note 4. Mortgage Servicing Rights**

The Company's portfolio of residential mortgage loans serviced for third parties was $2.4 billion as of June 30, 2025 and $2.5 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 $1.3 million and $1.4 million for the three months ended June 30, 2025 and 2024, respectively, and $2.6 million and $2.8 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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

For the three and six months ended June 30, 2025 and 2024, the change in the carrying value of the Company's mortgage servicing rights accounted for under the fair value measurement method was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|<br>(dollars in thousands) | **2025** | **2024** | **2025** | **2024** |
| **Balance at Beginning of Period** | $628 | $674 | $647 | $678 |
| &nbsp;&nbsp;&nbsp;Change in Fair Value Due to Payoffs | (9) | (6) | (28) | (10) |
| **Balance at End of Period** | $619 | $668 | $619 | $668 |

---

For the three and six months ended June 30, 2025 and 2024, the change in the carrying value of the Company's mortgage servicing rights accounted for under the amortization method was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(dollars in thousands) | **2025** | **2024** | **2025** | **2024** |
| **Balance at Beginning of Period** | $18141 | $19748 | $18552 | $20201 |
| &nbsp;&nbsp;&nbsp;Servicing Rights that Resulted From Asset Transfers | 92 | 63 | 179 | 158 |
| &nbsp;&nbsp;&nbsp;Amortization | (490) | (525) | (988) | (1073) |
| **Balance at End of Period** | $17743 | $19286 | $17743 | $19286 |
| **Fair Value of Mortgage Servicing Rights Accounted for Under the Amortization Method** |  |  |  |  |
| Beginning of Period | $24569 | $25649 | $24989 | $26173 |
| End of Period | $24218 | $25326 | $24218 | $25326 |

---

The key data and assumptions used in estimating the fair value of the Company's mortgage servicing rights as of June 30, 2025 and December 31, 2024, were as follows:

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| Weighted-Average Constant Prepayment Rate <sup>1</sup> | 4.12% | 4.00% |
| Weighted-Average Life (in years) | 9.09 | 9.28 |
| Weighted-Average Note Rate | 3.76% | 3.74% |
| Weighted-Average Discount Rate <sup>2</sup> | 9.55% | 9.92% |

---

<sup>1</sup>Represents annualized loan prepayment rate assumption.

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

A sensitivity analysis of the Company's fair value of mortgage servicing rights to changes in certain key assumptions as of June 30, 2025 and December 31, 2024, is presented in the following table.

---

| | | |
|:---|:---|:---|
| (dollars in thousands) | **June 30, 2025** | **December 31, 2024** |
| Constant Prepayment Rate |  |  |
| &nbsp;&nbsp;&nbsp;Decrease in fair value from 25 basis points ("bps") adverse change | $(300) | $(306) |
| &nbsp;&nbsp;&nbsp;Decrease in fair value from 50 bps adverse change | (593) | (606) |
| Discount Rate |  |  |
| &nbsp;&nbsp;&nbsp;Decrease in fair value from 25 bps adverse change | (275) | (282) |
| &nbsp;&nbsp;&nbsp;Decrease in fair value from 50 bps adverse change | (544) | (558) |

---

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. Affordable Housing Projects Tax Credit Partnerships**

The Company makes equity investments in various limited partnerships or limited liability companies that sponsor affordable housing projects utilizing the Low-Income Housing Tax Credit ("LIHTC") pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments is to achieve a satisfactory return on capital, to facilitate the sale of affordable

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

housing product offerings, and to assist in achieving goals associated with the Community Reinvestment Act. The primary activities of these entities include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants. Generally, these types of investments are funded through a combination of debt and equity.

The Company is a limited partner or non-managing member in each LIHTC limited partnership or limited liability company, respectively. Each of these entities is managed by an unrelated third-party general partner or managing member who exercises significant control over the affairs of the entity. The general partner or managing member has all the rights, powers and authority granted or permitted to be granted to a general partner of a limited partnership or managing member of a limited liability company. Duties entrusted to the general partner or managing member include, but are not limited to: investment in operating companies, company expenditures, investment of excess funds, borrowing funds, employment of agents, disposition of fund property, prepayment and refinancing of liabilities, votes and consents, contract authority, disbursement of funds, accounting methods, tax elections, bank accounts, insurance, litigation, cash reserve, and use of working capital reserve funds. Except for limited rights granted to the limited partner(s) or non-managing member(s) relating to the approval of certain transactions, the limited partner(s) and non-managing member(s) may not participate in the operation, management, or control of the entity's business, transact any business in the entity's name or have any power to sign documents for or otherwise bind the entity. In addition, the general partner or managing member may only be removed by the limited partner(s) or managing member(s) in the event of a failure to comply with the terms of the agreement or negligence in performing its duties.

The general partner or managing member of each entity has both the power to direct the activities which most significantly affect the performance of each entity and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. Therefore, the Company has determined that it is not the primary beneficiary of any LIHTC entity. The Company uses the effective yield method to account for its pre-2015 investments in these entities. Beginning January 1, 2015, any new investments that meet the requirements of the proportional amortization method are recognized using the proportional amortization method. The Company's net affordable housing tax credit investments including the related unfunded commitments were $224.4 million and $233.2 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*

As of June 30, 2025, the expected payments for unfunded affordable housing commitments were as follows:

---

| | |
|:---|:---|
| (dollars in thousands) | **Amount** |
| 2025 | $35076 |
| 2026 | 61293 |
| 2027 | 1871 |
| 2028 | 269 |
| 2029 | 235 |
| Thereafter | 15070 |
| **Total Unfunded Commitments** | $113814 |

---

The following table presents tax credits and other tax benefits recognized and amortization expense related to affordable housing for the three and six months ended June 30, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(dollars in thousands) | **2025** | **2024** | **2025** | **2024** |
| Effective Yield Method |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Tax Credits and Other Tax Benefits Recognized | $533 | $1137 | $1066 | $2274 |
| &nbsp;&nbsp;&nbsp;Amortization Expense in Provision for Income Taxes | 557 | 1119 | 1114 | 2239 |
| Proportional Amortization Method |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Tax Credits and Other Tax Benefits Recognized | $8844 | $6210 | $17688 | $12420 |
| &nbsp;&nbsp;&nbsp;Amortization Expense in Provision for Income Taxes | 7491 | 5348 | 14982 | 10695 |

---

There were no impairment losses related to LIHTC investments during the six months ended June 30, 2025 and 2024.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**Note 6. Securities Sold Under Agreements to Repurchase**

The following table presents the remaining contractual maturities of the Company's repurchase agreements as of June 30, 2025 and December 31, 2024, by collateral pledged.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Remaining Contractual Maturity of Repurchase Agreements** | **Remaining Contractual Maturity of Repurchase Agreements** | **Remaining Contractual Maturity of Repurchase Agreements** | **Remaining Contractual Maturity of Repurchase Agreements** | **Remaining Contractual Maturity of Repurchase Agreements** |
|<br>(dollars in thousands) | **Up to 90 days** | **91-365 days** | **1-3 Years** | **After 3 Years** | **Total** |
| **June 30, 2025** |  |  |  |  |  |
| Mortgage-Backed Securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises | $— | $— | $— | $50000 | $50000 |
| **December 31, 2024** |  |  |  |  |  |
| Mortgage-Backed Securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises | $— | $— | $50000 | $50000 | $100000 |

---

The following table presents the assets and liabilities subject to an enforceable master netting arrangement, or repurchase agreements as of June 30, 2025 and December 31, 2024. The Company has swap agreements with commercial banking customers that are not subject to an enforceable master netting arrangement, and therefore, are excluded from this table. Interest rate swaps that are designated as fair value hedges between the Company and institutional counterparties are also excluded from this table. See Note 10. *Derivative Financial Instruments* for more information on swap agreements.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **(i)** | **(ii)** | **(iii) = (i)-(ii)** | **(iv)** | **(iv)** | **(v) = (iii)-(iv)** |
| | | | | **Gross Amounts Not Offset in<br>the Statements of Condition** | **Gross Amounts Not Offset in<br>the Statements of Condition** | |
|<br>(dollars in thousands) |<br>**Gross Amounts Recognized in the Statements of Condition** |<br>**Gross Amounts Offset in the Statements of Condition** |<br>**Net Amounts Presented in the Statements of Condition** | **Netting Adjustments per Master Netting Arrangements** | **Fair Value of Collateral Pledged/ Received** <sup>1</sup> |<br>**Net Amount** |
| **June 30, 2025** |  |  |  |  |  |  |
| **Assets:** |  |  |  |  |  |  |
| Interest Rate Swap Agreements: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Institutional Counterparties | $94597 | $— | $94597 | $11795 | $82802 | $— |
| **Liabilities:** |  |  |  |  |  |  |
| Interest Rate Swap Agreements: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Institutional Counterparties | 11795 |  | 11795 | 11795 |  |  |
| Repurchase Agreements: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Private Institutions | 50000 |  | 50000 |  | 50000 |  |
| &nbsp;&nbsp;&nbsp;Total Repurchase Agreements | $50000 | $— | $50000 | $— | $50000 | $— |
| **December 31, 2024** |  |  |  |  |  |  |
| **Assets:** |  |  |  |  |  |  |
| Interest Rate Swap Agreements: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Institutional Counterparties | $141571 | $— | $141571 | $5446 | $136125 | $— |
| **Liabilities:** |  |  |  |  |  |  |
| Interest Rate Swap Agreements: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Institutional Counterparties | 5446 |  | 5446 | 5446 |  |  |
| Repurchase Agreements: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Private Institutions | 100000 |  | 100000 |  | 100000 |  |
| &nbsp;&nbsp;&nbsp;Total Repurchase Agreements | $100000 | $— | $100000 | $— | $100000 | $— |

---

<sup>1</sup>The application of collateral cannot reduce the net amount below zero. Therefore, excess collateral is not reflected in this table. For repurchase agreements with private institutions, the fair value of investment securities pledged was $56.0 million and $109.5 million as of June 30, 2025 and December 31, 2024, respectively.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**Note 7. Accumulated Other Comprehensive Income**

The following table presents the components of other comprehensive income for the three and six months ended June 30, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
| (dollars in thousands) | **Before Tax** | **Tax Effect** | **Net of Tax** |
| **Three Months Ended June 30, 2025** |  |  |  |
| Net Unrealized Gains on Investment Securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Unrealized Gains Arising During the Period | $19927 | $5281 | $14646 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts Reclassified from Accumulated Other Comprehensive Income that Decrease Net Income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of Unrealized Holding Losses on Held-to-Maturity Securities | 5884 | 1560 | 4324 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Unrealized Gains on Investment Securities | 25811 | 6841 | 18970 |
| Defined Benefit Plans: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of Net Actuarial Losses | 378 | 100 | 278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of Prior Service Credit | (61) | (16) | (45) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined Benefit Plans, Net | 317 | 84 | 233 |
| **Other Comprehensive Income** | $26128 | $6925 | $19203 |
| **Three Months Ended June 30, 2024** |  |  |  |
| Net Unrealized Gains on Investment Securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Unrealized Gains Arising During the Period | $6022 | $1595 | $4427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts Reclassified from Accumulated Other Comprehensive Income that Decrease Net Income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of Unrealized Holding Losses on Held-to-Maturity Securities | 6294 | 1669 | 4625 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Unrealized Gains on Investment Securities | 12316 | 3264 | 9052 |
| Defined Benefit Plans: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of Net Actuarial Losses | 291 | 78 | 213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of Prior Service Credit | (61) | (16) | (45) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined Benefit Plans, Net | 230 | 62 | 168 |
| **Other Comprehensive Income** | $12546 | $3326 | $9220 |
| **Six Months Ended June 30, 2025** |  |  |  |
| Net Unrealized Gains on Investment Securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Unrealized Gains Arising During the Period | $47920 | $12699 | $35221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts Reclassified from Accumulated Other Comprehensive Income that Decrease Net Income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of Unrealized Holding Losses on Held-to-Maturity Securities | 11578 | 3069 | 8509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Unrealized Gains on Investment Securities | 59498 | 15768 | 43730 |
| Defined Benefit Plans: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of Net Actuarial Losses | 755 | 200 | 555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of Prior Service Credit | (123) | (33) | (90) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined Benefit Plans, Net | 632 | 167 | 465 |
| **Other Comprehensive Income** | $60130 | $15935 | $44195 |
| **Six Months Ended June 30, 2024** |  |  |  |
| Net Unrealized Gains on Investment Securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Unrealized Gains Arising During the Period | $17426 | $4619 | $12807 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts Reclassified from Accumulated Other Comprehensive Income that Decrease Net Income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of Unrealized Holding Losses on Held-to-Maturity Securities | 12496 | 3313 | 9183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Unrealized Gains on Investment Securities | 29922 | 7932 | 21990 |
| Defined Benefit Plans: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of Net Actuarial Losses | 582 | 155 | 427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of Prior Service Credit | (122) | (32) | (90) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined Benefit Plans, Net | 460 | 123 | 337 |
| **Other Comprehensive Income** | $30382 | $8055 | $22327 |

---

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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

The following table presents the changes in each component of accumulated other comprehensive income, net of tax, for the three and six months ended June 30, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Investment Securities-Available-for-Sale** | **Investment Securities-Held-to-Maturity** | **Defined Benefit Plans** | **Accumulated Other Comprehensive Income (Loss)** |
| **Three Months Ended June 30, 2025** |  |  |  |  |
| **Balance at Beginning of Period** | $(168655) | $(126578) | $(23164) | $(318397) |
| &nbsp;&nbsp;&nbsp;Other Comprehensive Income Before Reclassifications | 14646 |  |  | 14646 |
| &nbsp;&nbsp;&nbsp;Amounts Reclassified from Accumulated Other Comprehensive Income |  | 4324 | 233 | 4557 |
| Total Other Comprehensive Income | 14646 | 4324 | 233 | 19203 |
| **Balance at End of Period** | $(154009) | $(122254) | $(22931) | $(299194) |
| **Three Months Ended June 30, 2024** |  |  |  |  |
| **Balance at Beginning of Period** | $(216027) | $(144463) | $(23091) | $(383581) |
| &nbsp;&nbsp;&nbsp;Other Comprehensive Income Before Reclassifications | 4427 |  |  | 4427 |
| &nbsp;&nbsp;&nbsp;Amounts Reclassified from Accumulated Other Comprehensive Income |  | 4625 | 168 | 4793 |
| Total Other Comprehensive Income | 4427 | 4625 | 168 | 9220 |
| **Balance at End of Period** | $(211600) | $(139838) | $(22923) | $(374361) |
| **Six Months Ended June 30, 2025** |  |  |  |  |
| **Balance at Beginning of Period** | $(189230) | $(130763) | $(23396) | $(343389) |
| &nbsp;&nbsp;&nbsp;Other Comprehensive Income Before Reclassifications | 35221 |  |  | 35221 |
| &nbsp;&nbsp;&nbsp;Amounts Reclassified from Accumulated Other Comprehensive Income |  | 8509 | 465 | 8974 |
| Total Other Comprehensive Income | 35221 | 8509 | 465 | 44195 |
| **Balance at End of Period** | $(154009) | $(122254) | $(22931) | $(299194) |
| **Six Months Ended June 30, 2024** |  |  |  |  |
| **Balance at Beginning of Period** | $(224407) | $(149021) | $(23260) | $(396688) |
| &nbsp;&nbsp;&nbsp;Other Comprehensive Income Before Reclassifications | 12807 |  |  | 12807 |
| &nbsp;&nbsp;&nbsp;Amounts Reclassified from Accumulated Other Comprehensive Income |  | 9183 | 337 | 9520 |
| Total Other Comprehensive Income | 12807 | 9183 | 337 | 22327 |
| **Balance at End of Period** | $(211600) | $(139838) | $(22923) | $(374361) |

---

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

The following table presents the amounts reclassified out of each component of accumulated other comprehensive income for the three and six months ended June 30, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
| **Details about Accumulated Other Comprehensive Income Components** | **Amount Reclassified from Accumulated Other Comprehensive Income**<sup>1</sup> | **Amount Reclassified from Accumulated Other Comprehensive Income**<sup>1</sup> | **Affected Line Item in the Statement Where Net Income Is Presented** |
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | |
| (dollars in thousands) | **2025** | **2024** |  |
| Amortization of Unrealized Holding Losses on Investment Securities Held-to-Maturity | $(5884) | $(6294) | Interest Income |
|  | 1560 | 1669 | Provision for Income Tax |
|  | (4324) | (4625) | Net of Tax |
| Amortization of Defined Benefit Plan Items |  |  |  |
| &nbsp;&nbsp;&nbsp;Prior Service Credit <sup>2</sup> | 61 | 61 |  |
| &nbsp;&nbsp;&nbsp;Net Actuarial Losses <sup>2</sup> | (378) | (291) |  |
|  | (317) | (230) | Total Before Tax |
|  | 84 | 62 | Provision for Income Tax |
|  | (233) | (168) | Net of Tax |
| Total Reclassifications for the Period | $(4557) | $(4793) | Net of Tax |
| **Details about Accumulated Other Comprehensive Income Components** | **Amount Reclassified from Accumulated Other Comprehensive Income**<sup>1</sup> | **Amount Reclassified from Accumulated Other Comprehensive Income**<sup>1</sup> | **Affected Line Item in the Statement Where Net Income Is Presented** |
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |  |
| (dollars in thousands) | **2025** | **2024** |  |
| Amortization of Unrealized Holding Losses on Investment Securities Held-to-Maturity | $(11578) | $(12496) | Interest Income |
|  | 3069 | 3313 | Provision for Income Tax |
|  | (8509) | (9183) | Net of Tax |
| Amortization of Defined Benefit Plan Items |  |  |  |
| &nbsp;&nbsp;&nbsp;Prior Service Credit <sup>2</sup> | 123 | 122 |  |
| &nbsp;&nbsp;&nbsp;Net Actuarial Losses <sup>2</sup> | (755) | (582) |  |
|  | (632) | (460) | Total Before Tax |
|  | 167 | 123 | Provision for Income Tax |
|  | (465) | (337) | Net of Tax |
| Total Reclassifications for the Period | $(8974) | $(9520) | Net of Tax |

---

<sup>1</sup>Amounts in parentheses indicate reductions to net income.

<sup>2</sup>These 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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**Note 8. Earnings Per Common Share**

Earnings per common share is computed using the two-class method. The following is a reconciliation of the weighted average number of common shares used in the calculation of basic and diluted earnings per common share and antidilutive restricted stock outstanding for the three and six months ended June 30, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(dollars in thousands, except per share amounts) | **2025** | **2024** | **2025** | **2024** |
| **Numerator:** |  |  |  |  |
| Net Income Available to Common Shareholders | $42368 | $32114 | $81084 | $66536 |
| **Denominator:** |  |  |  |  |
| Weighted Average Common Shares Outstanding - Basic | 39622998 | 39450551 | 39588916 | 39400452 |
| Dilutive Effect of Equity Based Awards | 272095 | 168154 | 299378 | 218322 |
| Weighted Average Common Shares Outstanding - Diluted | 39895093 | 39618705 | 39888294 | 39618774 |
| **Earnings Per Common Share:** |  |  |  |  |
| Basic | $1.07 | $0.81 | $2.05 | $1.69 |
| Diluted | $1.06 | $0.81 | $2.03 | $1.68 |
| Antidilutive Restricted Stock Outstanding | 49572 | 11272 | 31992 | 11272 |

---

**Note 9. Business Segments**

The Company's business segments are defined as Consumer Banking, Commercial Banking, and Treasury and Other. The Company's chief operating decision maker ("CODM") is the Chairman and Chief Executive Officer. The CODM uses income from operations to evaluate the performance of the overall business and to allocate resources to each of the segments.

The Company's internal management accounting process, which is not necessarily comparable with the process used by any other financial institution, uses various techniques to assign balance sheet and income statement amounts to the business segments, including allocations of income, expense, the provision for credit losses, and capital. This process is dynamic and requires certain allocations based on judgment and other subjective factors. Unlike financial accounting, there is no comprehensive authoritative guidance for management accounting that is equivalent to GAAP. Previously reported results have been reclassified to conform to the current reporting structure.

The net interest income of the business segments reflects the results of a funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics and reflects the allocation of net interest income related to the Company's overall asset and liability management activities on a proportionate basis. The basis for the allocation of net interest income is a function of the Company's assumptions that are subject to change based on changes in current interest rates and market conditions. Funds transfer pricing also serves to transfer interest rate risk to Treasury. However, the other business segments have some latitude to retain certain interest rate exposures related to customer pricing decisions within guidelines.

The provision for credit losses for the Consumer Banking and Commercial Banking business segments reflects the actual net charge-offs of those business segments. The amount of the consolidated provision for loan and lease losses is based on the CECL methodology that the Company used to estimate our consolidated Allowance. The residual provision for credit losses to arrive at the consolidated provision for credit losses is included in Treasury and Other.

Noninterest income and expense includes allocations from support units to business units. These allocations are based on actual usage where practicably calculated or by management's estimate of such usage.

The provision for income taxes is allocated to business segments using a 26% 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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

*Consumer Banking*

Consumer Banking offers a broad range of financial products and services, including loan and lease financing, deposit, and brokerage and insurance products; private banking and international client banking services; trust services; investment management; and institutional investment advisory services. Loan and lease products include residential mortgage loans, home equity lines of credit, automobile loans and leases, overdraft lines of credit, installment loans, small business loans and leases, and credit cards. Deposit products include checking, savings, and time deposit accounts. Brokerage and insurance offerings include equities, mutual funds, life insurance, and annuity products. Private banking (including international client banking) and Trust groups assist individuals and families in building and preserving their wealth by providing investment, credit, and trust services to high-net-worth individuals. The investment management group manages portfolios utilizing a variety of investment products and the institutional client services group offers investment advice to corporations, government entities, and foundations. Products and services from Consumer Banking are delivered to customers through 51 branch locations and 317 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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

Selected business segment financial information as of and for the three and six months ended June 30, 2025 and 2024, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Consumer Banking** | **Commercial Banking** | **Treasury and Other** | **Consolidated Total** |
| **Three Months Ended June 30, 2025** |  |  |  |  |
| Net Interest Income (Expense) | $95339 | $53949 | $(19605) | $129683 |
| Provision for (Recapture of) Credit Losses | 2619 | (1) | 632 | 3250 |
| Net Interest Income (Expense) After Provision for Credit Losses | 92720 | 53950 | (20237) | 126433 |
| Noninterest Income | 33981 | 6164 | 4650 | 44795 |
| Salaries and Benefits | 21032 | 4937 | 35339 | 61308 |
| Net Occupancy | 7142 | 402 | 2955 | 10499 |
| Other Noninterest Expense | 58629 | 13535 | (33188) | 38976 |
| Noninterest Expense | 86803 | 18874 | 5106 | 110783 |
| Income (Loss) Before Provision for Income Taxes | 39898 | 41240 | (20693) | 60445 |
| Provision (Benefit) for Income Taxes | 10161 | 10546 | (7899) | 12808 |
| **Net Income (Loss)** | $29737 | $30694 | $(12794) | $47637 |
| **Total Assets as of June 30, 2025** | $8228766 | $6139748 | $9341238 | $23709752 |
| **Three Months Ended June 30, 2024 ¹** |  |  |  |  |
| Net Interest Income (Expense) | $98205 | $50885 | $(34244) | $114846 |
| Provision for (Recapture of) Credit Losses | 2873 | 473 | (946) | 2400 |
| Net Interest Income (Expense) After Provision for Credit Losses | 95332 | 50412 | (33298) | 112446 |
| Noninterest Income | 33653 | 6698 | 1736 | 42087 |
| Salaries and Benefits | 20157 | 5085 | 31791 | 57033 |
| Net Occupancy | 6748 | 421 | 3390 | 10559 |
| Other Noninterest Expense | 60106 | 12504 | (30976) | 41634 |
| Noninterest Expense | 87011 | 18010 | 4205 | 109226 |
| Income (Loss) Before Provision for Income Taxes | 41974 | 39100 | (35767) | 45307 |
| Provision (Benefit) for Income Taxes | 10685 | 9887 | (9348) | 11224 |
| **Net Income (Loss)** | $31289 | $29213 | $(26419) | $34083 |
| **Total Assets as of June 30, 2024** | $8357830 | $5835399 | $9107539 | $23300768 |

---

<sup>1.</sup>Certain prior period information has been reclassified to conform to current presentation.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Consumer Banking** | **Commercial Banking** | **Treasury and Other** | **Consolidated Total** |
| **Six Months Ended June 30, 2025** |  |  |  |  |
| Net Interest Income (Expense) | $190963 | $109523 | $(44996) | $255490 |
| Provision for (Recapture of) Credit Losses | 5914 | 1107 | (521) | 6500 |
| Net Interest Income (Expense) After Provision for Credit Losses | 185049 | 108416 | (44475) | 248990 |
| Noninterest Income | 67479 | 13898 | 7476 | 88853 |
| Salaries and Benefits | 42137 | 10297 | 71758 | 124192 |
| Net Occupancy | 14209 | 802 | 6047 | 21058 |
| Other Noninterest Expense | 116831 | 27417 | (68256) | 75992 |
| Noninterest Expense | 173177 | 38516 | 9549 | 221242 |
| Income (Loss) Before Provision for Income Taxes | 79351 | 83798 | (46548) | 116601 |
| Provision (Benefit) for Income Taxes | 20162 | 21415 | (16598) | 24979 |
| **Net Income (Loss)** | $59189 | $62383 | $(29950) | $91622 |
| **Total Assets as of June 30, 2025** | $8228766 | $6139748 | $9341238 | $23709752 |
| **Six Months Ended June 30, 2024 ¹** |  |  |  |  |
| Net Interest Income (Expense) | $195199 | $102378 | $(68793) | $228784 |
| Provision for (Recapture of) Credit Losses | 5160 | 467 | (1227) | 4400 |
| Net Interest Income (Expense) After Provision for Credit Losses | 190039 | 101911 | (67566) | 224384 |
| Noninterest Income | 65635 | 13492 | 5245 | 84372 |
| Salaries and Benefits | 41074 | 10601 | 63573 | 115248 |
| Net Occupancy | 13612 | 868 | 6535 | 21015 |
| Other Noninterest Expense | 115030 | 25184 | (61392) | 78822 |
| Noninterest Expense | 169716 | 36653 | 8716 | 215085 |
| Income (Loss) Before Provision for Income Taxes | 85958 | 78750 | (71037) | 93671 |
| Provision (Benefit) for Income Taxes | 21865 | 19895 | (18563) | 23197 |
| **Net Income (Loss)** | $64093 | $58855 | $(52474) | $70474 |
| **Total Assets as of June 30, 2024** | $8357830 | $5835399 | $9107539 | $23300768 |

---

<sup>1</sup>Certain prior period information has been reclassified to conform to current presentation.

**Note 10. Derivative Financial Instruments**

The Company uses derivative instruments to manage its exposure to market risks, including interest rate risk, and to assist customers with their risk management objectives. The Company designates certain derivatives as hedging instruments in a qualifying hedge accounting relationship, while other derivatives serve as economic hedges that do not qualify for hedge accounting.

The Company enters into certain interest rate swap contracts that are matched to closed portfolios of fixed-rate residential mortgage loans and available-for-sale investment securities. These contracts have been designated as hedging instruments to hedge the risk of changes in the fair value of the underlying loans or investment securities due to changes in interest rates. The related contracts are structured so that the notional amounts reduce over time to generally match the expected amortization of the underlying loan or investment security.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

The notional amount and fair value of the Company's derivative financial instruments as of June 30, 2025, and December 31, 2024 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|<br>(dollars in thousands) | **Notional Amount** | **Fair Value** | **Notional Amount** | **Fair Value** |
| **Derivatives designated as hedging instruments** |  |  |  |  |
| &nbsp;&nbsp;Interest Rate Swap Agreements <sup>1</sup> | $2200000 | $(13140) | $2000000 | $2738 |
| **Derivatives not designated as hedging instruments** |  |  |  |  |
| &nbsp;&nbsp;Interest Rate Lock Commitments | 1341 | 37 | 1534 | 34 |
| &nbsp;&nbsp;Forward Commitments | 3082 | (8) | 3517 | 6 |
| &nbsp;&nbsp;Interest Rate Swap Agreements |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Receive Fixed/Pay Variable Swaps | 2165596 | (82906) | 2123665 | (136218) |
| &nbsp;&nbsp;&nbsp;Pay Fixed/Receive Variable Swaps | 2165596 | 82802 | 2123665 | 136125 |
| &nbsp;&nbsp;Conversion Rate Swap Agreements <sup>2</sup> | 108069 | NA | 96466 | NA |
| &nbsp;&nbsp;Makewhole Agreements <sup>3</sup> | 49161 | NA | 65763 | NA |

---

<sup>1</sup>As of June 30, 2025 and December 31, 2024, the amounts presented in the table above exclude forward starting swaps with notional values of $600 million and $300 million, respectively, and fair values of $1.3 million and $4.7 million, respectively. These swaps are scheduled to begin between August 2025 and August 2026.

<sup>2</sup>The conversion rate swap agreements were valued at zero as further reductions to the conversion rate were not reasonably estimable.

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

The following table presents the Company's derivative financial instruments, their fair values, and their location in the unaudited consolidated statements of condition as of June 30, 2025 and December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|<br>(dollars in thousands) | **Asset**<br>**Derivatives** <sup>1</sup> | **Liability**<br>**Derivatives** <sup>1</sup> | **Asset**<br>**Derivatives** <sup>1</sup> | **Liability**<br>**Derivatives** <sup>1</sup> |
| **Interest Rate Swap Agreements** |  |  |  |  |
| &nbsp;&nbsp;Not Designated as Hedging Instruments | $106288 | $106392 | $146923 | $147016 |
| &nbsp;&nbsp;Designated as Hedging Instruments | 1898 | 13747 | 14507 | 7039 |
|  | 108186 | 120139 | 161430 | 154055 |
| **Derivatives not designated as hedging instruments** |  |  |  |  |
| &nbsp;&nbsp;Interest Rate Lock Commitments | 37 |  | 34 |  |
| &nbsp;&nbsp;Forward Commitments |  | 8 | 9 | 3 |
| **Total Derivatives** | $108223 | $120147 | $161473 | $154058 |

---

<sup>1</sup>Asset 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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

The following table presents the Company's derivative financial instruments and the amount and location of the net gains or losses recognized in the unaudited consolidated statements of income for the three and six months ended June 30, 2025 and 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Location of Net Gains (Losses) Recognized in the Statements of Income** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(dollars in thousands) | **Location of Net Gains (Losses) Recognized in the Statements of Income** | **2025** | **2024** | **2025** | **2024** |
| **Derivatives designated as hedging instruments** | **Derivatives designated as hedging instruments** |  |  |  |  |
| &nbsp;&nbsp;Recognized on Interest Rate Swap Agreements | Interest Income on Investment Securities Available-for-Sale | $(1828) | $3082 | $(7490) | $19975 |
| &nbsp;&nbsp;Recognized on Hedged Item | Interest Income on Investment Securities Available-for-Sale | 1823 | (3145) | 7497 | (20147) |
| &nbsp;&nbsp;Net Cash Settlements | Interest Income on Investment Securities Available-for-Sale | (20) | 2736 | (22) | 5457 |
| &nbsp;&nbsp;Recognized on Interest Rate Swap Agreements | Interest and Fees on Loans and Leases | (3447) | 4222 | (11826) | 26824 |
| &nbsp;&nbsp;Recognized on Hedged Item | Interest and Fees on Loans and Leases | 3417 | (4308) | 11789 | (27060) |
| &nbsp;&nbsp;Net Cash Settlements | Interest and Fees on Loans and Leases | 1976 | 3367 | 3509 | 6715 |
| **Derivatives not designated as hedging instruments** | **Derivatives not designated as hedging instruments** |  |  |  |  |
| &nbsp;&nbsp;Interest Rate Lock Commitments | Mortgage Banking | 52 | 122 | 252 | 245 |
| &nbsp;&nbsp;Forward Commitments | Mortgage Banking | 31 | 119 | (4) | 215 |
| &nbsp;&nbsp;Interest Rate Swap Agreements | Other Noninterest Income | 9 | 10 | (10) | 53 |
| &nbsp;&nbsp;Conversion Rate Swap Agreements | Investment Securities Gains (Losses), Net | 15 |  | (563) |  |
| **Total** |  | $2028 | $6205 | $3132 | $12277 |

---

The following amounts were recorded on the unaudited consolidated statements of condition related to the cumulative basis adjustment for fair value hedges as of June 30, 2025 and December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Carrying Amount of the Hedged Assets** | **Carrying Amount of the Hedged Assets** | **Cumulative Amount of Fair Value Hedging Adjustment Included In the Carrying Amount of the Hedged Assets** | **Cumulative Amount of Fair Value Hedging Adjustment Included In the Carrying Amount of the Hedged Assets** |
| **Line Item in the Unaudited Consolidated Statements of Condition**<br>(dollars in thousands) | **June 30, 2025** | **December 31, 2024** | **June 30, 2025** | **December 31, 2024** |
| Investment Securities, Available-for-Sale <sup>1</sup> | $1207091 | $999594 | $7091 | $(406) |
| Loans and Leases <sup>2</sup> | 1604459 | 1292670 | 4459 | (7330) |

---

<sup>1</sup>These 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 $1.6 billion and $1.7 billion, respectively.

<sup>2</sup>These 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 $2.9 billion and $3.0 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

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

value with changes recorded in the mortgage banking component of noninterest income in the Company's consolidated statements of income.

*Interest Rate Swap Agreements*

The Company enters into interest rate swap agreements to facilitate the risk management strategies of a small number of commercial banking customers. The Company mitigates the risk of entering into these agreements by entering into equal and offsetting interest rate swap agreements with highly rated third-party financial institutions. The interest rate swap agreements are free-standing derivatives and are recorded at fair value in the Company's unaudited consolidated statements of condition (asset positions are included in other assets and liability positions are included in other liabilities). The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, usually in the form of cash and marketable securities, is posted by the party (i.e., the Company or the financial institution counterparty) with net liability positions in accordance with contract thresholds. The Company had net asset positions with its financial institution counterparties totaling $82.8 million and $136.1 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 zero (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 zero (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. Commitments and Contingencies**

The Company's credit commitments as of June 30, 2025 and December 31, 2024, were as follows:

---

| | | |
|:---|:---|:---|
| (dollars in thousands) | **June 30, 2025** | **December 31, 2024** |
| Unfunded Commitments to Extend Credit | $3096145 | $3128272 |
| Standby Letters of Credit | 93256 | 96484 |
| Commercial Letters of Credit | 9432 | 9339 |
| **Total Credit Commitments** | $3198833 | $3234095 |

---

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

*Unfunded Commitments to Extend Credit*

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of the terms or conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since commitments may expire without being drawn, the total commitment amount does not necessarily represent future cash requirements.

*Standby and Commercial Letters of Credit*

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third-party. Standby letters of credit generally become payable upon the failure of the customer to perform according to the terms of the underlying contract with the third-party, while commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and a third party. The contractual amount of these letters of credit represents the maximum potential future payments guaranteed by the Company. The Company has recourse against the customer for any amount it is required to pay to a third-party under a standby letter of credit, and generally holds cash or deposits as collateral on those standby letters of credit for which collateral is deemed necessary. Assets valued at $77.7 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 1 to 13 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. Fair Value of Assets and Liabilities**

***Fair Value Hierarchy***

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels:

---

| | |
|:---|:---|
| Level 1: | Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value. |
| Level 2: | Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market. |
| Level 3: | Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that require significant management judgment or estimation, some of which may be internally developed. |

---

In some instances, an instrument may fall into multiple levels of the fair value hierarchy. In such instances, the instrument's level within the fair value hierarchy is based on the lowest of the three levels (with Level 3 being the lowest) that is

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

significant to the fair value measurement. Our assessment of the significance of an input requires judgment and considers factors specific to the instrument.

***Assets and Liabilities Measured at Fair Value on a Recurring Basis***

*Investment Securities Available-for-Sale*

Level 1 investment securities are comprised of debt securities issued by the U.S. Treasury, as quoted prices were available, unadjusted, for identical securities in active markets. Level 2 investment securities were primarily comprised of debt securities issued by the Small Business Administration, states and municipalities, corporations, as well as mortgage-backed securities and collateralized mortgage obligations issued by government agencies and government-sponsored enterprises. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models. In cases where there may be limited or less transparent information provided by the Company's third party pricing service, fair value may be estimated by the use of secondary pricing services or through the use of non-binding third party broker quotes.

*Loans Held for Sale*

The fair value of the Company's residential mortgage loans held for sale was determined based on quoted prices for similar loans in active markets, and therefore, is classified as a Level 2 measurement.

*Mortgage Servicing Rights*

The Company estimates the fair value of mortgage servicing rights accounted for under the fair value measurement method by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company stratifies its mortgage servicing portfolio on the basis of loan type. The assumptions used in the discounted cash flow model are those that the Company believes market participants would use in estimating future net servicing income. Significant assumptions in the valuation of mortgage servicing rights include estimated loan repayment rates, the discount rate, servicing costs, and the timing of cash flows, among other factors. Mortgage servicing rights are classified as Level 3 measurements due to the use of significant unobservable inputs, as well as significant management judgment and estimation.

*Deferred Compensation Plan Assets*

Deferred Compensation Plan Assets are recorded at fair value on a recurring basis and are primarily comprised of mutual funds that are valued using quoted prices available in active markets. Thus, the Company's investments related to deferred compensation arrangements are classified as Level 1 measurements in the fair value hierarchy.

*Derivative Financial Instruments*

Derivative financial instruments recorded at fair value on a recurring basis are comprised of IRLCs, forward commitments, interest rate swap agreements, and Visa Class B to Class A shares conversion rate swap and makewhole agreements. The fair values of IRLCs are calculated based on the value of the underlying loan held for sale, which in turn is based on quoted prices for similar loans in the secondary market. However, this value is adjusted by a factor which considers the likelihood that the loan in a locked position will ultimately close. This factor, the closing ratio, is derived from the Bank's internal data and is adjusted using significant management judgment. As such, IRLCs are classified as Level 3 measurements. Forward commitments are classified as Level 2 measurements as they are primarily based on quoted prices from the secondary market based on the settlement date of the contracts, interpolated or extrapolated, if necessary, to estimate a fair value as of the end of the reporting period.

The fair values of interest rate swap agreements are calculated using a discounted cash flow approach and utilize Level 2 observable inputs such as a market yield curve, effective date, maturity date, notional amount, and stated interest rate. The valuation methodology for interest rate swaps with financial institution counterparties (and the related customer interest rate swaps) is based on the Secured Overnight Financing Rate ("SOFR"). Thus, the fair values of interest rate swaps are classified as a Level 2 measurement. The fair value of the Visa Class B restricted shares to Class A unrestricted common shares conversion rate swap agreements represent the amount owed by the Company to the buyer of the Visa Class B shares as a result of a reduction of the conversion ratio subsequent to the sales date. As of June 30, 2025 and December 31, 2024, the conversion rate swap agreements were valued at zero 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

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

additional legal reserves to settle ongoing litigation. As of June 30, 2025, the makewhole agreements were valued at zero 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.

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Quoted Prices in Active Markets for Identical Assets or Liabilities<br>(Level 1)** | **Significant Other Observable Inputs<br>(Level 2)** | **Significant Unobservable Inputs<br>(Level 3)** | **Total** |
| **June 30, 2025** |  |  |  |  |
| **Assets:** |  |  |  |  |
| Investment Securities Available-for-Sale |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt Securities Issued by the U.S. Treasury and Government Agencies | $133946 | $109769 | $— | $243715 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt Securities Issued by States and Political Subdivisions |  | 65960 |  | 65960 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt Securities Issued by U.S. Government-Sponsored Enterprises |  | 985 |  | 985 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt Securities Issued by Corporations |  | 728842 |  | 728842 |
| &nbsp;&nbsp;&nbsp;&nbsp;Collateralized Mortgage Obligations Issued by: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises |  | 1097369 |  | 1097369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial - Government Agencies or Sponsored Enterprises |  | 332461 |  | 332461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial - Non Agency |  | 36007 |  | 36007 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Collateralized Mortgage Obligations |  | 1465837 |  | 1465837 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-Backed Securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises |  | 606165 |  | 606165 |
| Total Investment Securities Available-for-Sale | 133946 | 2977558 |  | 3111504 |
| Loans Held for Sale |  | 1867 |  | 1867 |
| Mortgage Servicing Rights |  |  | 619 | 619 |
| Deferred Compensation Plan Assets | 14569 |  |  | 14569 |
| Derivatives <sup>1</sup> |  | 108186 | 37 | 108223 |
| **Total Assets Measured at Fair Value on a Recurring Basis as of June 30, 2025** | $148515 | $3087611 | $656 | $3236782 |
| **Liabilities:** |  |  |  |  |
| Derivatives <sup>1</sup> | $— | $120147 | $— | $120147 |
| **Total Liabilities Measured at Fair Value on a Recurring Basis as of June 30, 2025** | $— | $120147 | $— | $120147 |
| **December 31, 2024** |  |  |  |  |
| **Assets:** |  |  |  |  |
| Investment Securities Available-for-Sale |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt Securities Issued by the U.S. Treasury and Government Agencies | $150389 | $98683 | $— | $249072 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt Securities Issued by States and Political Subdivisions |  | 63859 |  | 63859 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt Securities Issued by U.S. Government-Sponsored Enterprises |  | 1464 |  | 1464 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt Securities Issued by Corporations |  | 671675 |  | 671675 |
| &nbsp;&nbsp;&nbsp;&nbsp;Collateralized Mortgage Obligations Issued by: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises |  | 935220 |  | 935220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial - Government Agencies or Sponsored Enterprises |  | 283474 |  | 283474 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Collateralized Mortgage Obligations |  | 1218694 |  | 1218694 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-Backed Securities Issued by: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential - Government Agencies or Sponsored Enterprises |  | 484764 |  | 484764 |
| Total Investment Securities Available-for-Sale | 150389 | 2539139 |  | 2689528 |
| Loans Held for Sale |  | 2150 |  | 2150 |
| Mortgage Servicing Rights |  |  | 647 | 647 |
| Deferred Compensation Plan Assets | 18155 |  |  | 18155 |
| Derivatives <sup>1</sup> |  | 161439 | 34 | 161473 |
| **Total Assets Measured at Fair Value on a Recurring Basis as of December 31, 2024** | $168544 | $2702728 | $681 | $2871953 |
| **Liabilities:** |  |  |  |  |
| Derivatives <sup>1</sup> | $— | $154058 | $— | $154058 |
| **Total Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2024** | $— | $154058 | $— | $154058 |

---

<sup>1</sup>The fair value of each class of derivatives is shown in Note 10. *Derivative Financial Instruments*.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

***Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis***

The Company may be required periodically to measure certain assets and liabilities at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower-of-cost-or-fair value accounting or impairment write-downs of individual assets. As of June 30, 2025 and December 31, 2024, there were no assets or liabilities with nonrecurring fair value adjustments. Additionally, there were no nonrecurring fair value adjustments during the three and six months ended June 30, 2025 and 2024.

***Fair Value Option***

The following table reflects the difference between the aggregate fair value and the aggregate unpaid principal balance of the Company's residential mortgage loans held for sale as of June 30, 2025 and December 31, 2024.

---

| | | | |
|:---|:---|:---|:---|
| (dollars in thousands) | **Aggregate Fair Value** | **Aggregate Unpaid Principal** | **Aggregate Fair Value Less Aggregate Unpaid Principal** |
| **June 30, 2025** |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans Held for Sale | $1867 | $1832 | $35 |
| **December 31, 2024** |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans Held for Sale | $2150 | $2109 | $41 |

---

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***

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company's financial instruments not recorded at fair value on a recurring basis as of June 30, 2025 and December 31, 2024. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For non-marketable equity securities such as Federal Home Loan Bank of Des Moines and Federal Reserve Bank stock, the carrying amount is a reasonable estimate of fair value as these securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

or to another member institution. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is the estimate of fair value due to these products having no stated maturity.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** |
|<br>(dollars in thousands) |<br>**Carrying Amount** |<br>**Fair Value** | **Quoted Prices in Active Markets for Identical Assets or Liabilities<br>(Level 1)** | **Significant Other Observable Inputs<br>(Level 2)** | **Significant Unobservable Inputs<br>(Level 3)** |
| **June 30, 2025** |  |  |  |  |  |
| Financial Instruments - Assets |  |  |  |  |  |
| &nbsp;&nbsp;Investment Securities Held-to-Maturity | $4441353 | $3754794 | $121178 | $3633616 | $— |
| &nbsp;&nbsp;Loans | 13700594 | 13073565 |  |  | 13073565 |
| Financial Instruments - Liabilities |  |  |  |  |  |
| &nbsp;&nbsp;Time Deposits | 3037995 | 3028864 |  | 3028864 |  |
| &nbsp;&nbsp;Securities Sold Under Agreements to Repurchase | 50000 | 51619 |  | 51619 |  |
| &nbsp;&nbsp;Other Debt <sup>1</sup> | 550000 | 545556 |  | 545556 |  |
| **December 31, 2024** |  |  |  |  |  |
| Financial Instruments – Assets |  |  |  |  |  |
| &nbsp;&nbsp;Investment Securities Held-to-Maturity | $4618543 | $3820882 | $116941 | $3703941 | $— |
| &nbsp;&nbsp;Loans | 13777756 | 12908626 |  |  | 12908626 |
| Financial Instruments – Liabilities |  |  |  |  |  |
| &nbsp;&nbsp;Time Deposits | 3059575 | 3050583 |  | 3050583 |  |
| &nbsp;&nbsp;Securities Sold Under Agreements to Repurchase | 100000 | 101478 |  | 101478 |  |
| &nbsp;&nbsp;Other Debt <sup>1</sup> | 550000 | 538808 |  | 538808 |  |

---

<sup>1</sup>Excludes finance lease obligations.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**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

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**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** | **Average Balances and Interest Rates - Taxable-Equivalent Basis ¹** | **Average Balances and Interest Rates - Taxable-Equivalent Basis ¹** | **Average Balances and Interest Rates - Taxable-Equivalent Basis ¹** | **Average Balances and Interest Rates - Taxable-Equivalent Basis ¹** | **Average Balances and Interest Rates - Taxable-Equivalent Basis ¹** | **Average Balances and Interest Rates - Taxable-Equivalent Basis ¹** | | | | | **Table 1** | **Table 1** |
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
|<br>(dollars in millions) | **Average Balance** | **Income/Expense** <sup>2</sup> | **Yield/Rate** | **Average Balance** | **Income/Expense** <sup>2</sup> | **Yield/Rate** | **Average Balance** | **Income/Expense** <sup>2</sup> | **Yield/Rate** | **Average Balance** | **Income/Expense** <sup>2</sup> | **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 |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | 2987.2 | 26.7 | 3.58 | 2308.3 | 21.5 | 3.73 | 2889.3 | 50.8 | 3.53 | 2344.3 | 43.2 | 3.69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 |
| &nbsp;&nbsp;&nbsp;Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | 4462.1 | 19.7 | 1.77 | 4837.2 | 21.4 | 1.77 | 4505.1 | 39.8 | 1.77 | 4882.0 | 43.4 | 1.78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 | 7510.7 | 47.0 | 2.50 | 7181.7 | 43.1 | 2.40 | 7452.8 | 91.7 | 2.47 | 7262.7 | 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 <sup>3</sup> |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial Mortgage | 4025.2 | 53.7 | 5.35 | 3723.6 | 51.6 | 5.57 | 4020.3 | 106.2 | 5.33 | 3720.1 | 102.1 | 5.52 |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial | 1668.1 | 21.1 | 5.07 | 1692.7 | 22.4 | 5.32 | 1685.8 | 42.3 | 5.06 | 1678.0 | 44.5 | 5.33 |
| &nbsp;&nbsp;&nbsp;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 |
| &nbsp;&nbsp;&nbsp;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 |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | 4626.5 | 45.6 | 3.95 | 4595.2 | 45.6 | 3.97 | 4621.6 | 90.5 | 3.91 | 4622.6 | 90.7 | 3.92 |
| &nbsp;&nbsp;&nbsp;Home Equity | 2141.5 | 23.3 | 4.37 | 2231.7 | 21.8 | 3.92 | 2147.9 | 45.8 | 4.30 | 2240.9 | 42.9 | 3.85 |
| &nbsp;&nbsp;&nbsp;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 |
| &nbsp;&nbsp;&nbsp;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 | 14049.0 | 168.3 | 4.80 | 13831.8 | 163.9 | 4.76 | 14055.6 | 332.7 | 4.76 | 13850.3 | 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** | 21980.8 | 220.2 | 4.01 | 21537.5 | 214.3 | 3.99 | 22002.2 | 435.9 | 3.98 | 21637.6 | 425.3 | 3.94 |
| Non-Earning Assets | 1616.2 |  |  | 1607.6 |  |  | 1615.2 |  |  | 1575.7 |  |  |
| **Total Assets** | $23597.0 |  |  | $23145.1 |  |  | $23617.4 |  |  | $23213.3 |  |  |
| **Interest-Bearing Liabilities** | **Interest-Bearing Liabilities** |  |  |  |  |  |  |  |  |  |  |  |
| Interest-Bearing Deposits |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Demand | $3705.5 | $7.6 | 0.82% | $3788.5 | $8.8 | 0.94% | $3739.2 | $14.7 | 0.79% | $3776.3 | $16.5 | 0.88% |
| &nbsp;&nbsp;Savings | 8578.6 | 48.1 | 2.25 | 8259.2 | 52.0 | 2.53 | 8561.7 | 95.2 | 2.24 | 8195.3 | 101.4 | 2.49 |
| &nbsp;&nbsp;Time | 3050.0 | 26.8 | 3.52 | 2935.9 | 30.7 | 4.20 | 3043.7 | 54.3 | 3.60 | 3008.5 | 62.7 | 4.19 |
| Total Interest-Bearing Deposits | 15334.1 | 82.5 | 2.16 | 14983.6 | 91.5 | 2.46 | 15344.6 | 164.2 | 2.16 | 14980.1 | 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** | 15942.4 | 88.9 | 2.24 | 15668.9 | 98.7 | 2.53 | 15976.1 | 177.3 | 2.24 | 15678.1 | 195.1 | 2.50 |
| **Net Interest Income** |  | $131.3 |  |  | $115.6 |  |  | $258.6 |  |  | $230.2 |  |
| &nbsp;&nbsp;Interest Rate Spread |  |  | 1.77 |  |  | 1.46 |  |  | 1.74 |  |  | 1.44 |
| &nbsp;&nbsp;Net Interest Margin |  |  | 2.39 |  |  | 2.15 |  |  | 2.36 |  |  | 2.13 |
| Noninterest-Bearing Demand Deposits | 5365.6 |  |  | 5374.8 |  |  | 5340.1 |  |  | 5470.9 |  |  |
| Other Liabilities | 584.6 |  |  | 662.9 |  |  | 611.1 |  |  | 637.0 |  |  |
| Shareholders' Equity | 1704.4 |  |  | 1438.5 |  |  | 1690.1 |  |  | 1427.3 |  |  |
| **Total Liabilities and Shareholders' Equity** | $23597.0 |  |  | $23145.1 |  |  | $23617.4 |  |  | $23213.3 |  |  |

---

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

<sup>2</sup>Interest 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.

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

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Analysis of Change in Net Interest Income - Taxable-Equivalent Basis** | **Analysis of Change in Net Interest Income - Taxable-Equivalent Basis** | **Analysis of Change in Net Interest Income - Taxable-Equivalent Basis** | **Analysis of Change in Net Interest Income - Taxable-Equivalent Basis** | | | **Table 2** |
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Compared to June 30, 2024** | **Compared to June 30, 2024** | **Compared to June 30, 2024** | **Compared to June 30, 2024** | **Compared to June 30, 2024** | **Compared to June 30, 2024** |
|<br>(dollars in millions) | **Volume** <sup>1</sup> | **Rate** <sup>1</sup> | **Total** | **Volume** <sup>1</sup> | **Rate** <sup>1</sup> | **Total** |
| **Change in Interest Income:** |  |  |  |  |  |  |
| Cash and Cash Equivalents | $(1.3) | $(1.0) | $(2.3) | $(0.9) | $(2.1) | $(3.0) |
| Investment Securities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Available-for-Sale |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | 6.1 | (0.9) | 5.2 | 9.6 | (2.0) | 7.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Taxable | 0.4 | 0.0 | 0.4 | 0.6 | 0.1 | 0.7 |
| &nbsp;&nbsp;&nbsp;Held-to-Maturity |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | (1.7) | (0.1) | (1.8) | (3.3) | (0.3) | (3.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial Mortgage | 4.2 | (2.1) | 2.1 | 7.8 | (3.7) | 4.1 |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial | (0.3) | (1.0) | (1.3) | 0.2 | (2.4) | (2.2) |
| &nbsp;&nbsp;&nbsp;Construction | 0.9 | (0.5) | 0.4 | 1.4 | (0.5) | 0.9 |
| &nbsp;&nbsp;&nbsp;Commercial Lease Financing | 0.5 | 0.2 | 0.7 | 0.9 | 0.3 | 1.2 |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | 0.3 | (0.3) | 0.0 | 0.0 | (0.2) | (0.2) |
| &nbsp;&nbsp;&nbsp;Home Equity | (0.9) | 2.4 | 1.5 | (1.9) | 4.8 | 2.9 |
| &nbsp;&nbsp;&nbsp;Automobile | (1.0) | 1.3 | 0.3 | (1.8) | 2.6 | 0.8 |
| &nbsp;&nbsp;&nbsp;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 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Demand | (0.2) | (1.0) | (1.2) | (0.2) | (1.6) | (1.8) |
| &nbsp;&nbsp;&nbsp;Savings | 2.0 | (5.9) | (3.9) | 4.3 | (10.5) | (6.2) |
| &nbsp;&nbsp;&nbsp;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 |

---

<sup>1</sup>The 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

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

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,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(dollars in thousands) | **2025** | **2024** | **Dollar Change** | **Percent Change** | **2025** | **2024** | **Dollar Change** | **Percent Change** |
| Fees, Exchange, and Other Service Charges | $14383 | $13769 | $614 | 4.5% | $28820 | $27892 | $928 | 3.3% |
| Trust and Asset Management | 12097 | 12223 | (126) | (1.0) | 23838 | 23412 | 426 | 1.8 |
| Service Charges on Deposit Accounts | 8119 | 7730 | 389 | 5.0 | 16378 | 15677 | 701 | 4.5 |
| Bank-Owned Life Insurance | 3714 | 3396 | 318 | 9.4 | 7325 | 6752 | 573 | 8.5 |
| Annuity and Insurance | 1437 | 1583 | (146) | (9.2) | 2992 | 2629 | 363 | 13.8 |
| Mortgage Banking | 849 | 1028 | (179) | (17.4) | 1837 | 1979 | (142) | (7.2) |
| Investment Securities Losses, Net | (1126) | (1601) | 475 | (29.7) | (2733) | (3098) | 365 | (11.8) |
| Other Income | 5322 | 3959 | 1363 | 34.4 | 10396 | 9129 | 1267 | 13.9 |
| **Total Noninterest Income** | $44795 | $42087 | $2708 | 6.4% | $88853 | $84372 | $4481 | 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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

*Noninterest Expense*

Table 4 presents the components of noninterest expense.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Noninterest Expense** | | | | | | | | **Table 4** |
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(dollars in thousands) | **2025** | **2024** | **Dollar Change** | **Percent Change** | **2025** | **2024** | **Dollar Change** | **Percent Change** |
| Salaries | $39644 | $38662 | $982 | 2.5% | $77886 | $76693 | $1193 | 1.6% |
| Incentive Compensation | 5067 | 3109 | 1958 | 63.0 | 10640 | 6199 | 4441 | 71.6 |
| Retirement and Other Benefits | 3894 | 3961 | (67) | (1.7) | 8955 | 8260 | 695 | 8.4 |
| Share-Based Compensation | 3668 | 3296 | 372 | 11.3 | 7169 | 7095 | 74 | 1.0 |
| Medical, Dental, and Life Insurance | 3610 | 3211 | 399 | 12.4 | 8147 | 6423 | 1724 | 26.8 |
| Payroll Taxes | 2998 | 3070 | (72) | (2.3) | 7764 | 7800 | (36) | (0.5) |
| Separation Expense | 1374 | 785 | 589 | 75.0 | 1455 | 1267 | 188 | 14.8 |
| Commission Expense | 1053 | 939 | 114 | 12.1 | 2176 | 1511 | 665 | 44.0 |
| Total Salaries and Benefits | 61308 | 57033 | 4275 | 7.5 | 124192 | 115248 | 8944 | 7.8 |
| Net Occupancy | 10499 | 10559 | (60) | (0.6) | 21058 | 21015 | 43 | 0.2 |
| Net Equipment | 9977 | 10355 | (378) | (3.7) | 20169 | 20458 | (289) | (1.4) |
| Data Processing | 5456 | 4745 | 711 | 15.0 | 10723 | 9515 | 1208 | 12.7 |
| Professional Fees | 4263 | 4929 | (666) | (13.5) | 8527 | 9606 | (1079) | (11.2) |
| FDIC Insurance | 3640 | 7170 | (3530) | (49.2) | 5282 | 10784 | (5502) | (51.0) |
| Other Expense: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Advertising | 1876 | 1701 | 175 | 10.3 | 4039 | 3634 | 405 | 11.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Merchant Transaction and Card Processing Fees | 1685 | 1645 | 40 | 2.4 | 3426 | 3310 | 116 | 3.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Delivery and Postage Services | 1665 | 1749 | (84) | (4.8) | 3345 | 3381 | (36) | (1.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Mileage Program Travel | 1044 | 1030 | 14 | 1.4 | 2105 | 2133 | (28) | (1.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Broker's Charges | 651 | 446 | 205 | 46.0 | 1250 | 811 | 439 | 54.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 8719 | 7864 | 855 | 10.9 | 17126 | 15190 | 1936 | 12.7 |
| Total Other Expense | 15640 | 14435 | 1205 | 8.3 | 31291 | 28459 | 2832 | 10.0 |
| **Total Noninterest Expense** | $110783 | $109226 | $7037 | 6.4% | $221242 | $215085 | $17933 | 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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

*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,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(dollars in thousands) | **2025** | **2024** | **2025** | **2024** |
| Provision for Income Taxes | $12808 | $11224 | $24979 | $23197 |
| 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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**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 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial Mortgage | $4038956 | $4020622 | $18334 | 0.5% |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial | 1597560 | 1705133 | (107573) | (6.3) |
| &nbsp;&nbsp;&nbsp;Construction | 374768 | 308898 | 65870 | 21.3 |
| &nbsp;&nbsp;&nbsp;Lease Financing | 92842 | 90756 | 2086 | 2.3 |
| Total Commercial | 6104126 | 6125409 | (21283) | (0.3) |
| Consumer |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | 4637014 | 4628283 | 8731 | 0.2 |
| &nbsp;&nbsp;&nbsp;Home Equity | 2139025 | 2165514 | (26489) | (1.2) |
| &nbsp;&nbsp;&nbsp;Automobile | 715688 | 764146 | (48458) | (6.3) |
| &nbsp;&nbsp;&nbsp;Other | 406325 | 392628 | 13697 | 3.5 |
| Total Consumer | 7898052 | 7950571 | (52519) | (0.7) |
| **Total Loans and Leases** | $14002178 | $14075980 | $(73802) | (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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Commercial Mortgage Breakdown** | **Commercial Mortgage Breakdown** | | | | | **Table 6a** |
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|<br>(dollars in thousands) | **Amount** | **Percent of Total** | **% Owner Occupied** | **Amount** | **Percent of Total** | **% Owner Occupied** |
| Multi-family | $989140 | 25% | —% | $1025247 | 25% | —% |
| Industrial | 740203 | 18 | 40 | 724645 | 18 | 42 |
| Lodging | 722915 | 18 |  | 676350 | 17 |  |
| Retail | 700139 | 17 | 3 | 704780 | 18 | 3 |
| Office | 376537 | 9 | 20 | 371474 | 9 | 20 |
| Other <sup>1</sup> | 510022 | 13 | 26 | 518126 | 13 | 26 |
| **Total Commercial Mortgage** | $4038956 | 100% | 13% | $4020622 | 100% | 13% |

---

<sup>1.</sup>Amount includes unamortized loan origination fees.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

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** <sup>1</sup> | **Guam** | **Other Pacific Islands** | **Total** |
| **June 30, 2025** |  |  |  |  |  |
| Commercial |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial Mortgage | $3607929 | $255719 | $174883 | $425 | $4038956 |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial | 1381481 | 137052 | 68422 | 10605 | 1597560 |
| &nbsp;&nbsp;&nbsp;Construction | 374768 |  |  |  | 374768 |
| &nbsp;&nbsp;&nbsp;Lease Financing | 92499 |  | 343 |  | 92842 |
| Total Commercial | 5456677 | 392771 | 243648 | 11030 | 6104126 |
| Consumer |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | 4560931 | 5429 | 70361 | 293 | 4637014 |
| &nbsp;&nbsp;&nbsp;Home Equity | 2094326 | 38 | 44661 |  | 2139025 |
| &nbsp;&nbsp;&nbsp;Automobile | 568571 |  | 114921 | 32196 | 715688 |
| &nbsp;&nbsp;&nbsp;Other | 350262 |  | 53706 | 2357 | 406325 |
| Total Consumer | 7574090 | 5467 | 283649 | 34846 | 7898052 |
| **Total Loans and Leases** | $13030767 | $398238 | $527297 | $45876 | $14002178 |
| **Percentage of Total Loans and Leases** | 93% | 3% | 4% | 0% | 100% |
| **December 31, 2024** |  |  |  |  |  |
| Commercial |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial Mortgage | $3534658 | $297758 | $187777 | $429 | $4020622 |
| &nbsp;&nbsp;&nbsp;Commercial and Industrial | 1493386 | 139968 | 62824 | 8955 | 1705133 |
| &nbsp;&nbsp;&nbsp;Construction | 308898 |  |  |  | 308898 |
| &nbsp;&nbsp;&nbsp;Lease Financing | 90260 |  | 496 |  | 90756 |
| Total Commercial | 5427202 | 437726 | 251097 | 9384 | 6125409 |
| Consumer |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | 4553553 | 5469 | 68932 | 329 | 4628283 |
| &nbsp;&nbsp;&nbsp;Home Equity | 2119548 | 41 | 45925 |  | 2165514 |
| &nbsp;&nbsp;&nbsp;Automobile | 601359 |  | 125331 | 37456 | 764146 |
| &nbsp;&nbsp;&nbsp;Other | 336718 |  | 47279 | 8631 | 392628 |
| Total Consumer | 7611178 | 5510 | 287467 | 46416 | 7950571 |
| **Total Loans and Leases** | $13038380 | $443236 | $538564 | $55800 | $14075980 |
| **Percentage of Total Loans and Leases** | 93% | 3% | 4% | 0% | 100% |

---

<sup>1</sup>For 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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

*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 | $224381 | $233202 | $(8821) | (3.8)% |
| Deferred Tax Assets and Tax Receivable | 164062 | 172499 | (8437) | (4.9) |
| Derivative Financial Instruments | 108223 | 161473 | (53250) | (33.0) |
| Federal Home Loan Bank of Des Moines Stock | 34750 | 34750 |  |  |
| Federal Reserve Bank Stock | 30541 | 30339 | 202 | 0.7 |
| Prepaid Expenses | 21874 | 22623 | (749) | (3.3) |
| Deferred Compensation Plan Assets | 14569 | 18155 | (3586) | (19.8) |
| Accounts Receivable | 12641 | 16981 | (4340) | (25.6) |
| Foreclosed Real Estate | 342 | 2657 | (2315) | (87.1) |
| Other | 40401 | 44279 | (3878) | (8.8) |
| **Total Other Assets** | $651784 | $736958 | $(85174) | (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 | $10429271 | $10397777 | $31494 | 0.3% |
| Commercial | 8243898 | 8299590 | (55692) | (0.7) |
| Public and Other | 2125745 | 1935670 | 190075 | 9.8 |
| **Total Deposits** | $20798914 | $20633037 | $165877 | 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 | $3347231 | $3430047 | $(82816) | (2.4)% |
| Regular Savings | 5134097 | 4934869 | 199228 | 4.0 |
| **Total Savings Deposits** | $8481328 | $8364916 | $116412 | 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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

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

---

| | | | |
|:---|:---|:---|:---|
| **Maturity Distribution of 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: |  |  |  |
| &nbsp;&nbsp;Three months or less | $716431 | $635812 | $80619 |
| &nbsp;&nbsp;After three through six months | 503352 | 365354 | 137998 |
| &nbsp;&nbsp;After six through twelve months | 256740 | 524286 | (267546) |
| &nbsp;&nbsp;After twelve months | 151487 | 102795 | 48692 |
| **Total** | $1628010 | $1628247 | $(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** | **Uninsured Deposits Reconciliation** | **Table 12** |
| (dollars in thousands) | **June 30, 2025** <sup>1</sup> | **December 31, 2024**<sup>2</sup> |
| Estimated Uninsured Deposits, as Reported in our Call Report | $9885632 | $9754299 |
| Less: |  |  |
| &nbsp;&nbsp;Deposits Collateralized by Government-Backed Securities | (2003084) | (1794050) |
| &nbsp;&nbsp;Intercompany Deposits of Wholly-Owned Subsidiaries | (125395) | (121932) |
| &nbsp;&nbsp;Other | (69432) | (110995) |
| **Adjusted Uninsured Deposits** | $7687721 | $7727322 |

---

<sup>1</sup>Balances presented as of June 30, 2025 are preliminary.

<sup>2</sup>Balances 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 | $550000 | $550000 | $— |
| Finance Lease Obligations | 8226 | 8274 | (48) |
| **Total** | $558226 | $558274 | $(48) |

---

**Analysis of Business Segments**

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

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

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,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(dollars in thousands) | **2025** | **2024** | **2025** | **2024** |
| Consumer Banking | $29737 | $31289 | $59189 | $64093 |
| Commercial Banking | 30694 | 29213 | 62383 | 58855 |
| **Total** | 60431 | 60502 | 121572 | 122948 |
| Treasury and Other | (12794) | (26419) | (29950) | (52474) |
| **Consolidated Total** | $47637 | $34083 | $91622 | $70474 |

---

*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

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

*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** | **Non-Performing Assets 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 |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial Mortgage | $2566 | $2450 | $116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial and Industrial | 3744 | 4627 | (883) |
| &nbsp;&nbsp;&nbsp;Total Commercial | 6310 | 7077 | (767) |
| &nbsp;&nbsp;&nbsp;Consumer |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential Mortgage | 5842 | 5052 | 790 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home Equity | 5387 | 4514 | 873 |
| &nbsp;&nbsp;&nbsp;Total Consumer | 11229 | 9566 | 1663 |
| Total Non-Accrual Loans and Leases | 17539 | 16643 | 896 |
| Foreclosed Real Estate | 342 | 2657 | (2315) |
| **Total Non-Performing Assets** | $17881 | $19300 | $(1419) |
| **Accruing Loans and Leases Past Due 90 Days or More** |  |  |  |
| Consumer |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential Mortgage | $9070 | $3984 | $5086 |
| &nbsp;&nbsp;&nbsp;Home Equity | 1867 | 2845 | (978) |
| &nbsp;&nbsp;&nbsp;Automobile | 680 | 776 | (96) |
| &nbsp;&nbsp;&nbsp;Other | 630 | 677 | (47) |
| Total Consumer | 12247 | 8282 | 3965 |
| **Total Accruing Loans and Leases Past Due 90 Days or More** | $12247 | $8282 | $3965 |
| **Total Loans and Leases** | $14002178 | $14075980 | $(73802) |
| 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** | $19300 |  |  |
| Additions<sup>1</sup> | 5731 |  |  |
| Reductions |  |  |  |
| &nbsp;&nbsp;&nbsp;Payments | (2636) |  |  |
| &nbsp;&nbsp;&nbsp;Return to Accrual Status | (818) |  |  |
| &nbsp;&nbsp;&nbsp;Sales of Foreclosed Real Estate | (2532) |  |  |
| &nbsp;&nbsp;&nbsp;Charge-offs/Write-downs<sup>1</sup> | (1164) |  |  |
| Total Reductions | (7150) |  |  |
| **Balance as of June 30, 2025** | $17881 |  |  |

---

<sup>1</sup>Excludes 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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

*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,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>(dollars in thousands) | **2025** | **2024** | **2025** | **2024** |
| **Balance at Beginning of Period** | $149496 | $152148 | $150649 | $152429 |
| Loans and Leases Charged-Off |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial and Industrial | (206) | (875) | (1605) | (1235) |
| &nbsp;&nbsp;&nbsp;Consumer |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential Mortgage |  | (48) |  | (48) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home Equity | (155) | (202) | (230) | (237) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Automobile | (1253) | (1095) | (3004) | (2143) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (2397) | (2610) | (4881) | (4922) |
| **Total Loans and Leases Charged-Off** | (4011) | (4830) | (9720) | (8585) |
| Recoveries on Loans and Leases Previously Charged-Off |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial and Industrial | 78 | 263 | 155 | 379 |
| &nbsp;&nbsp;&nbsp;Consumer |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential Mortgage | 11 | 63 | 22 | 105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home Equity | 180 | 113 | 308 | 297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Automobile | 557 | 481 | 1190 | 1007 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 567 | 517 | 1024 | 1123 |
| **Total Recoveries on Loans and Leases Previously Charged-Off** | 1393 | 1437 | 2699 | 2911 |
| Net Charged-Off - Loans and Leases | (2618) | (3393) | (7021) | (5674) |
| Provision for Credit Losses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans and Leases | 3454 | 3206 | 7036 | 6748 |
| &nbsp;&nbsp;&nbsp;Unfunded Commitments | (204) | (806) | (536) | (2348) |
| Total Provision for Credit Losses | 3250 | 2400 | 6500 | 4400 |
| **Balance at End of Period** | $150128 | $151155 | $150128 | $151155 |
| **Components** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Allowance for Credit Losses - Loans and Leases | $148543 | $147477 | $148543 | $147477 |
| &nbsp;&nbsp;&nbsp;Reserve for Unfunded Commitments | 1585 | 3678 | 1585 | 3678 |
| **Total Reserve for Credit Losses** | $150128 | $151155 | $150128 | $151155 |
| **Average Loans and Leases Outstanding** | $14049025 | $13831797 | $14055563 | $13850299 |
| 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 <sup>1</sup> | 1.06% | 1.07% | 1.06% | 1.07% |

---

<sup>1</sup>The 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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

*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:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changing product pricing strategies;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

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** | **Impact on Future Annual Net Interest Income** | **Impact on Future Annual Net Interest Income** | **Impact on Future Annual Net Interest Income** |
|<br>(dollars in thousands) | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Immediate Change in Interest Rates (basis points)** |  |  |  |  |
| +400 | $34112 | 6.0% | $31028 | 5.6% |
| +300 | 27909 | 4.9 | 25281 | 4.6 |
| +200 | 20681 | 3.6 | 18783 | 3.4 |
| +100 | 12278 | 2.2 | 10393 | 1.9 |
| -100 | (8245) | (1.5) | (13029) | (2.3) |
| -200 | (18947) | (3.3) | (27883) | (5.0) |
| -300 | (31989) | (5.6) | (43536) | (7.8) |
| -400 | (64691) | (11.4) | (65753) | (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-

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

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** | **Impact on Economic Value of Equity** | **Impact on Economic Value of Equity** | **Impact on Economic Value of Equity** |
|<br>(dollars in thousands) | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Immediate Change in Interest Rates (basis points)** |  |  |  |  |
| +400 | $(506084) | (18.3)% | $(1032211) | (29.1)% |
| +300 | (389662) | (14.1) | (763479) | (21.5) |
| +200 | (265775) | (9.6) | (496443) | (14.0) |
| +100 | (135174) | (4.9) | (238689) | (6.7) |
| -100 | 162068 | 5.9 | 177198 | 5.0 |
| -200 | 307986 | 11.1 | 274546 | 7.7 |
| -300 | 298732 | 10.8 | 294363 | 8.3 |
| -400 | 180624 | 6.5 | (99219) | (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&nbsp;&nbsp;&nbsp;&nbsp;. 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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

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 <sup>1</sup> |  |  |
| Total Common Shareholders' Equity | $1398107 | $1322774 |
| Add: CECL Transitional Amount |  | 2375 |
| Less: Goodwill, Net of Deferred Tax Liabilities | 28746 | 28746 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Postretirement Benefit Liability Adjustments | (22931) | (23396) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Unrealized Losses on Investment Securities <sup>2</sup> | (276263) | (319993) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (9097) | (9097) |
| Common Equity Tier 1 Capital | 1677652 | 1648889 |
| Preferred Stock, Net of Issuance Cost | 336101 | 336101 |
| Tier 1 Capital | 2013753 | 1984990 |
| Allowable Reserve for Credit Losses | 150128 | 148634 |
| **Total Regulatory Capital** | $2163881 | $2133624 |
| **Risk-Weighted Assets** | $14208032 | $14225908 |
| **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 |

---

<sup>1</sup>Regulatory capital ratios as of June 30, 2025 are preliminary.

<sup>2</sup>Includes 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

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**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** <sup>1</sup> | **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** <sup>2</sup> |
| April 1 - 30, 2025 | 159 | $65.92 |  | $126038927 |
| May 1 - 31, 2025 | 4105 | 67.15 |  | 126038927 |
| June 1 - 30, 2025 |  |  |  | 126038927 |
| Total | 4264 | $67.10 |  |  |

---

<sup>1</sup>During 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.

<sup>2</sup>The 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, none of the Company's directors or executive officers informed the Company of the adoption, modification, or termination of any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any non-Rule 10b5-1 trading arrangement.

**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.

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**Exhibit Index**

---

| | |
|:---|:---|
| **Exhibit Number** | |
| 3.1 | <u>[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).](https://www.sec.gov/Archives/edgar/data/0000046195/000104746906002592/a2167652zex-3_1.htm)</u> |
| 3.2 | <u>[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).](https://www.sec.gov/Archives/edgar/data/0000046195/000110465908028414/a08-13016_1ex3d1.htm)</u> |
| 3.3 | <u>[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).](https://www.sec.gov/Archives/edgar/data/0000046195/000119312521191143/d184114dex31.htm)</u> |
| 3.4 | <u>[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).](https://www.sec.gov/Archives/edgar/data/46195/000119312524165835/d831633dex31.htm)</u> |
| 3.5 | <u>[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).](https://www.sec.gov/Archives/edgar/data/46195/000156459020054889/boh-ex32_6.htm)</u> |
| 4.1 | <u>[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)](https://www.sec.gov/Archives/edgar/data/0000046195/000119312521191143/d184114dex41.htm)</u> |
| 4.2 | <u>[Form of Depository Receipt, Series A (included in Exhibit 4.1)](https://www.sec.gov/Archives/edgar/data/0000046195/000119312521191143/d184114dex41.htm)</u> |
| 4.3 | <u>[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)](https://www.sec.gov/Archives/edgar/data/0000046195/000119312524165835/d831633dex41.htm)</u> |
| 4.4 | <u>[Form of Depository Receipt, Series B (included in Exhibit 4.3)](https://www.sec.gov/Archives/edgar/data/0000046195/000119312524165835/d831633dex41.htm)</u> |
| 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\* | <u>[Composite Directors' Deferred Compensation Plan, as amended through July 1, 2025.](ex101-compositedirectorsde.htm)</u> |
| 31.1 | <u>[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](boh-20250630xex311.htm)</u> |
| 31.2 | <u>[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](boh-20250630xex312.htm)</u> |
| 32 | <u>[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](boh-20250630xex32.htm)</u> |
| 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

------

**<u>[**Table of Contents**](#idceff8c525764fd9a4aea5606912f912_7)</u>**

**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: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Peter S. Ho |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;Peter S. Ho |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer (Principal Executive Officer) |
|  |  | By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Bradley S. Satenberg |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;Bradley S. Satenberg |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer (Principal Financial Officer) |

---

## Exhibit 10.1

**EXHIBIT 10.1**

**BANK OF HAWAII CORPORATION<br><u>DIRECTORS' DEFERRED COMPENSATION PLAN</u>**

COMPOSITE AS AMENDED THROUGH JULY 1, 2025<br>****

------

**BANK OF HAWAII CORPORATION<br><u>DIRECTORS' DEFERRED COMPENSATION PLAN</u>**

**Article 1.<u>Purpose</u>.** This Bank of Hawaii Corporation Directors' Deferred Compensation Plan ("Plan") is intended to advance the interests of Bank of Hawaii Corporation ("Company") by providing deferred compensation benefits to the non-employee members of the Board of Directors of the Company and the Bank of Hawaii ("Bank") ("Directors") and thereby strengthening the ability of the Company to attract and retain valued Directors upon whose judgment, initiative, and efforts the successful conduct and development of the Company depends.

**Article 2.<u>Effective Date</u>.** This Plan, which is an amendment and restatement of the prior version of the Plan, shall be effective as of June 28, 2013, upon adoption by the Board of Directors of the Company, and shall operate on the basis of the calendar year ("Plan Year"). This Plan constitutes a restatement in its entirety and continuation of the prior version of the Plan.

**Article 3.<u>Eligibility</u>.** Any Director entitled to compensation by the Company or the Bank for service as a Director ("Eligible Director"), other than a Director who is also a salaried officer or employee of the Company or any of its subsidiaries, may elect to become a participant ("Participant") under the Plan by written notice to the Company.

**Article 4.<u>Election of Deferral</u>.** This Article 4 shall be effective as of April 28, 2023.

Each Participant may elect to defer receipt of all or any portion of (i) his annual board retainer fees and committee retainer fees; (ii) his annual board retainer fees; (iii) his annual committee retainer fees; or (iv) grants of restricted stock units, all which are earned for the Plan Year commencing after the date of the election ("Deferral Election"). However, this Article 4 shall not apply to grants of restricted stock units made prior to January 1, 2024. The Deferral Election for a Plan Year shall be irrevocable as of the dates set forth below. Any Deferral Election must be written and must be made in accordance with any procedures established by the Company. The Company may require that a Participant make separate Deferral Elections for fees and restricted stock units earned for a given Plan Year.

Any Director may defer compensation for a Plan Year, including fees earned for such Plan Year and restricted stock unit awards subject to service periods beginning during such Plan Year, by submitting a Deferral Election with respect to such compensation not later than December 31 of the year immediately preceding such Plan Year. Such Deferral Election shall become irrevocable on December 31 of the year immediately preceding the Plan Year unless the Company provides for an earlier date.

In the case of the first Plan Year in which a Participant becomes eligible to participate in the Plan, the Participant shall be allowed to make a Deferral Election for such Plan Year only within 30 days after becoming eligible to participate, and such Deferral Election shall be irrevocable and effective only with respect to the designated fees and restricted stock unit awards for services performed after the date the Deferral Election is delivered to the Company.

In accordance with Article 11A, unless otherwise allowed by the Committee, a Deferral Election for a Plan Year shall not be automatically applied for a subsequent Plan Year on an "evergreen" basis.

**Article 5.<u>Deferred Compensation Account</u>.** A separate account shall be established and maintained on behalf of each Participant under the Plan ("Account"), which Account shall reflect the balance of the Deferral Election amounts credited to the Participant as provided in Article 4 above. The deferred fees of each Participant shall be credited to the Participant's Account as soon as reasonably practicable following the date on which such fees would be otherwise payable to the Participant.

------

For purposes of determining the value of the balance of each Participant's Account, the amount allocated to the Participant's Account shall be treated as if such amount were invested and reinvested in one or more of the investment funds or vehicles ("Funds") as may be designated by the Company, or shares of Company common stock ("Company Stock"), as may be directed by the Participant. Each Account shall be appropriately increased or decreased, as the case may be, to reflect the appreciation or depreciation in the value attributable to the Funds or Company Stock, the net income or loss attributable to the Funds or Company Stock, and distributions and expenses that may be charged to the Account. The Participant agrees on behalf of himself and any designated beneficiary to assume all risks and responsibilities for his investment directions under his Account, and the Company shall not be liable for any deemed investment losses that may be incurred under the Account. However, notwithstanding the preceding portion of this paragraph, in order to meet the requirements for exemption from the short-swing profit recovery provisions of Section 16 of the Securities Exchange Act of 1934 ("Exchange Act"), the Participant's investment direction in Company Stock shall be subject to the limitations described below in Article 5A.

**Article 5A.**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Rule 16b-3 Requirements</u>.** With respect to Directors who are subject to the provisions of Section 16 of the Exchange Act, the provisions of the Plan and all transactions hereunder are intended and shall be construed and applied so as to comply with all applicable requirements and conditions for exemption under Rule 16b-3 or any successor Rule under the Exchange Act.

In this regard, a Participant's investment election directing the investment, disinvestment, or reinvestment of his Account in Company Stock as allowed under Article 5 shall meet the requirements of a "discretionary transaction" under Code of Federal Regulation Section 240.16b-3(f). Specifically, a Participant shall be allowed to make such investment election with respect to the acquisition or disposition of Company Stock only if such election is made on or after the date that is six months following the date of the most recent investment election for an "opposite way" transaction under any employee benefit plan sponsored by the Company. For this purpose, an "opposite way" transaction means, a previous acquisition if the current transaction is a disposition, and vice versa.

Further, with respect to a Participant's Account, an acquisition or disposition of Company Stock resulting from an election to receive cash or Company Stock in connection with the distribution of the Account shall be made only if such acquisition or disposition is approved in advance by the Human Resources and Compensation Committee of the Board of Directors of Bank of Hawaii Corporation ("Committee"), or such acquisition or disposition otherwise falls within the scope of an alternative exemption under Rule 16b-3.

**Article 5B. <u>Company Stock Investment Restrictions</u>.** Effective as of July 24, 2015, and with respect to any notional investment of Company Stock that is credited to a Participant's Account on or after such date (i.e., the preexisting Company Stock maintained under the Account as of such date and any Company Stock acquired under the Account on or after such date), and irrespective of whether the Company Stock is an investment or reinvestment of Deferral Election amounts or dividends or other earnings under the Account, the following requirements shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Company Stock investment shall be maintained in Company Stock for the continuous period ("Holding Period") beginning on the date of the investment in the Company Stock and ending on the date (and inclusive of such date) that is six months following the date of the investment in the Company Stock. Thus, during this Holding Period, the affected Company Stock shall be "nondiversifiable" and the Participant shall not have the authority to direct or allocate the Company Stock to other investment Funds available under the Plan.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the provisions of Article 7, with respect to the portion of a Participant's account that constitutes a notional investment of Company Stock at the time of distribution of such portion to the Participant or beneficiary, such distribution shall be made in-kind in the form of Company Stock.

To the extent that the requirements of this Article 5B are applicable on and after July 24, 2015, they shall supersede the other provisions of the Plan that are inconsistent with such requirements (e.g., Articles 5 and 5A relating to a Participant's investment authority to direct the acquisition or disposition of Company Stock during the Holding Period, and Articles 7 and 8 relating to the distribution election of a Participant or beneficiary to take other than an in-kind distribution of Company Stock maintained in the Account at the time of distribution). Further, to the extent that the requirements of this Article 5B are not applicable, the other provisions of the Plan shall continue to apply. Thus, subject to the provisions of Articles 5 and 5A, a Participant shall be entitled to exercise the otherwise applicable investment direction authority over Company Stock credited to the Participant's Account following the completion of the Holding Period covering the Company Stock.

**Article 5C. <u>Stock Incentive Contribution</u>.** This Article 5C shall be effective as of April 28, 2023.

The Company and a Director may be parties to a restricted stock unit agreement pursuant to the Bank of Hawaii Corporation 2015 Director Stock Compensation Plan ("Stock Incentive Agreement") or a successor plan that provides restricted stock units ("RSUs") conditioned upon the satisfaction of specified Director service objectives. In this case, the RSUs shall be subject to deferral under the provisions of this Article 5C ("Eligible RSUs") to the extent that the Company determines and approves that the RSUs are eligible for deferral under this Plan. However, this Article 5C shall not apply to grants of restricted stock units made prior to January 1, 2024.

Eligible RSUs shall be treated as a component of the Director's compensation earned for a Plan Year that is subject to the Deferral Election provisions under Article 4 above. As permitted under Article 4, the Director may make a Deferral Election applicable to the deferral of the Eligible RSUs. By making this Deferral Election, the Director may defer the receipt of up to 100% of the Eligible RSUs that would otherwise be paid following the vesting of the Eligible RSUs under the terms of the applicable Stock Incentive Agreement ("Vesting Date"). The portion of the Eligible RSUs that is subject to deferral in accordance with the Deferral Election ("Stock Incentive Contribution") shall be credited to a separate account on behalf of the Director under the Plan ("Stock Incentive Account") on or as soon as practical following the Vesting Date, which Stock Incentive Account shall reflect the balance of the Stock Incentive Contribution credited to the Director and the deemed investment earnings and losses on such contribution. The remaining portion of the Eligible RSUs that is not subject to the Deferral Election shall be paid following the Vesting Date (in accordance with the time and manner provided under the applicable Stock Incentive Agreement). A Director's Stock Incentive Account may be further divided into separate subaccounts, each of which corresponds to a separate grant of Eligible RSUs deferred by the Director.

Unless otherwise provided in this Article 5C, the Stock Incentive Account shall be treated as an Account, and shall be subject to the administrative rules applicable to an Account (e.g., deemed investment of Account as directed by Director, separate accounting for portion of Account attributable to the Stock Incentive Account), as described in Article 5 above. However, a Director shall not be permitted to direct the investment of Eligible RSUs credited to the Director's Stock Incentive Account.

------

Any Eligible RSUs credited to the Director's Stock Incentive Account shall remain in the form of Eligible RSUs until the time of distribution.

At the discretion of the Company, Eligible RSUs deferred under the Plan may be credited with cash dividends paid by the Company ("Dividend Equivalents"). Dividend Equivalents shall be credited to the Director's Stock Incentive Account and shall be treated as earnings on the underlying Eligible RSUs. Upon being credited to the Plan, Dividend Equivalents shall initially be invested in a default investment fund designated by the Company. Thereafter, at the Director's direction, such amounts may be invested in one or more investment funds or vehicles as may be designated by the Company.

The provisions of Articles 7 and 8 below shall govern the timing and form of distribution of a Director's Stock Incentive Account in the same manner as such provisions govern the timing and form of distribution of the Director's Account in general. However, any provisions of Articles 7 and 8 to the contrary notwithstanding, any Eligible RSUs credited to a Director's Stock Incentive Account shall be satisfied and paid in the form of Company Stock, and not in cash. Any Dividend Equivalents and earnings thereupon shall be subject to the time and form of distribution provided by the Director's Deferral Election with respect to the underlying Eligible RSUs.

With respect to Eligible RSUs that are subject to deferral under the provisions of this Article 5C, the portion of the underlying Stock Incentive Agreement that describes the amount (or determination of the amount) of the Eligible RSUs shall constitute part of deferred compensation plan provisions governing the deferral of the Eligible RSUs for purposes of compliance with the written plan requirement under Code Section 409A.

**Article 6.<u>Vesting</u>.** Except as provided in Article 11, a Participant shall have a 100% vested and non-forfeitable interest in the balance of his Account.

**Article 7.<u>Distribution Due to Separation from Service or At Specified Time</u>.** Each Participant shall file with the Company at the time of his Deferral Election an irrevocable election ("Distribution Election") regarding the time and form of the distribution applicable to that portion of his Account derived from the Deferral Election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.<u>Time of Distribution</u>. The Distribution Election shall include the Participant's election of one of the following distribution commencement dates: (i) the first day of the month following the date on which the Participant incurs a "separation from service"; (ii) an anniversary date of the Participant's separation from service, but no later than the fifth anniversary date; or (iii) a date specified by the Participant. For this purpose, the term "separation from service" shall be defined by reference to Treasury Regulation Section 1.409A-1(h). Also, a distribution shall be treated as made on the first day of the month following the Participant's separation from service if the distribution is actually made by the end of the Plan Year or such other later date in accordance with the administrative rule of Treasury Regulation Section 1.409A-3(d). Further, a date specified by the Participant shall be a calendar date certain (e.g., January 1, 2010) and may not be stated as the date of an event (e.g., "the date my child begins college").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.<u>Form of Distribution</u>. The Distribution Election shall further include the Participant's election of one of the following forms of payment: (i) a single lump sum distribution; or (ii) annual installment payments over a period not to exceed ten years (using the "declining balance method" under which each annual installment payment is determined by multiplying the remaining Account balance by a fraction, where the numerator is one and the denominator is the remaining years in the payment period).

Subject to the limitations of Article 5A, with respect to the portion of a Participant's Account that is treated as invested in Company Stock pursuant to the Participant's direction under Article 5, the form

------

of the distribution under this Article 7 and Article 8 below shall be in cash or in Company Stock as the Participant (or beneficiary) may elect by written notice delivered to the Company within a reasonable period prior to distribution. If a timely election is not received by the Company, such distribution shall be made in cash. With respect to the portion of a Participant's Account that is treated as invested in other than Company Stock, the form of distribution under this Article 7 and Article 8 below shall be in cash.

**Article 8.<u>Distribution Due to Death</u>.** Upon the death of an active Participant, or terminated Participant prior to expiration of the period during which his Account is payable, the balance of his Account shall be paid in a single lump sum to his designated beneficiary. The Account shall be paid in full on the second day of the Plan Year following the year of death. The Participant's designated beneficiary shall be designated or changed by the Participant (without the consent of any prior beneficiary) through written notice delivered to the Company. If no such beneficiary is designated, or if no designated beneficiary survives the Participant, the amount payable due to the Participant's death shall be payable to the Participant's estate.

**Article 9.<u>Incapacity</u>.** If the Committee finds that any person to whom payment is payable under this Plan is unable to care for his affairs because of illness or accident, or is a minor, any payment due (unless a prior claim for such payment has been made by a duly appointed guardian, committee, or other legal representative) may be paid to the spouse, a child, a parent, or a brother or sister, or to any person deemed by the Committee to have incurred expense for such person otherwise entitled to payment.

**Article 10.<u>Funding</u>.** The amounts payable under this Plan shall be paid in cash or in kind from the general funds of the Company, as the Committee may determine, and a Participant shall have no right, title, or interest whatsoever in or to investments, if any, which the Company may make to aid it in meeting its obligations under this Plan. Title to and beneficial ownership of any such investments shall at all times remain in the Company. Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and the Participant and any other person. To the extent that any person acquires a right to receive a payment from the Company under this Plan, such right shall be no greater than the right of any unsecured creditor.

**Article 11.<u>Legal Status</u>.** This Plan is intended to constitute a nonqualified deferred compensation plan not subject to the qualification requirements of Section 401(a) of the Internal Revenue Code of 1986, as amended (Code"), or the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). Specifically, prior to the actual payment of the amounts credited to an Account, there is no transfer of any assets to a Participant or for the benefit of the Participant under this Plan, and the Plan is intended to confer no current benefit that would be immediately taxable to the Participant under the constructive receipt rule or economic benefit doctrine under the tax laws. Further, this Plan is intended to benefit non-employee Directors exclusively, and not employees of the Company, and is thereby not subject to the requirements of ERISA.

**Article 11A.&nbsp;&nbsp;&nbsp;&nbsp;<u>Code Section 409A Compliance</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.<u>Code Section 409A Application</u>. The requirements of Code Section 409A shall apply to the portion of each Participant's Account that is attributable to Deferral Election amounts deferred on or after January 1, 2005 ("Regular Account"). With respect to such Regular Accounts, this Plan is intended to meet the requirements of Code Section 409A and shall be interpreted in a manner consistent with the underlying regulatory guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.<u>Grandfathered Account</u>. Effective as of January 1, 2005, the portion of each Participant's Account that is comprised of the balance credited to such Account as of December 31, 2004 shall be credited to and maintained as a separate account ("Grandfathered Account"). The Grandfathered Account shall be appropriately increased or decreased, as the case may be, to reflect the appreciation or depreciation in the value of such Account, the net income or loss attributable to the assets credited to such Account, and distributions and expenses that may be charged against such Account. Elective Deferral amounts for Plan Years beginning on or after January 1, 2005, and earnings thereon, shall

------

not be credited to or combined with Grandfathered Accounts. Grandfathered Accounts constitute amounts earned and vested as of December 31, 2004 that are grandfathered from, and not subject to the application of, Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.<u>Plan Provisions</u>. Except as otherwise provided under this Article 11A, the provisions of the Plan shall generally apply to both Regular Accounts and Grandfathered Accounts. The reference to "Account" under the Plan shall refer to Regular Accounts and Grandfathered Accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.<u>Code Section 409A Requirements</u>. For purposes of compliance with Code Section 409A, Regular Accounts shall be subject to the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Evergreen Deferral Elections</u>. Unless otherwise allowed by the Committee, a Deferral Election for a Plan Year shall not be automatically applied for a subsequent Plan Year on an "evergreen" basis. A Participant must make an affirmative Deferral Election with respect to each Plan Year under Article 4. If a Participant does not make an affirmative election by December 31 of the immediately preceding year, the Participant shall be deemed to have irrevocably elected not to make a Deferral Election for the Plan Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Subaccounts Relating to Varying Distribution Elections</u>. Under Article 7, as part of any Deferral Election, a Participant must make an irrevocable election ("Distribution Election") regarding the form of distribution for that portion of the Participant's Account that is attributable to the Deferral Election. To the extent that a Participant's Distribution Election for a given Plan Year is for a different form of distribution (e.g., installments over different numbers of years following termination from service) as compared to preceding Plan Years, the Company shall separately account for the Deferral Election amount for the given Plan Year as a subaccount of the Participant's Regular Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Subsequent Changes to Distribution Elections</u>. Under Article 7, any Distribution Election shall be irrevocable. However, the Committee may, at its sole and complete discretion, allow for a subsequent modification to a Distribution Election, subject to satisfaction of the following requirements in accordance with Code Section 409A(a)(4)(C) and underlying regulations: (i) in no event shall a modification result in the acceleration of payments provided under the Distribution Election; (ii) any new election must be made at least 12 months prior to the date payments are scheduled to commence; (iii) under any new election, the commencement of payments must be deferred for a period of not less than five years from the date such payments would otherwise commence; and (iv) any new election may not take effect until 12 months after the new election is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Distribution Events.</u> In accordance with Articles 7 and 8, the distribution of a Participant's Account is only permitted in the event of the Participant's separation from service as a Director of the Company or the Participant's death. No other distribution events shall apply under the Plan.

**Article 11B.**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Code Section 409A Transition Distribution Elections</u>.** On or before December 31, 2008, and notwithstanding that a preexisting Distribution Election is otherwise irrevocable, each Participant shall be allowed to make a new Distribution Election ("Transition Distribution Election") as to the time and form of distribution of his Account payable after 2008. The Participant shall be allowed to make a separate Transition Distribution Election for his Grandfathered Account, if any, and for his Regular Account (where a separate Transition Distribution Election may apply to the portion of the Regular Account attributable to each Plan Year beginning after 2004). The Transition Distribution

------

Election shall not defer distributions that would otherwise be payable in 2008, and shall not provide for distributions to be paid in 2008 that would otherwise be payable in a later year.

**Article 12.<u>Continued Service</u>.** Nothing contained in this Plan shall be construed as conferring upon a Participant the right to continue in the service of the Company as a Director or in any other capacity. Further, nothing contained in this Plan shall be deemed to create an obligation on the part of the Board to nominate any Director for reelection by the Company stockholders.

**Article 13.<u>Nonassignment</u>.** The interests of a Participant hereunder may not be sold, transferred, signed, pledged, or hypothecated. No Participant may borrow against his Account.

**Article 14.<u>Administration</u>.** The Committee shall have full power and authority to interpret, construe, and administer this Plan, in its sole and absolute discretion, and the Committee's interpretation and construction of this Plan, including any valuation of an Account or the amount or recipient of any payment, shall be binding and conclusive on all persons. The Committee may at its sole discretion determine the costs of implementing and administering the Plan, and it may charge all or a portion of such costs to Participants either by charging their respective Accounts or by direct charge. In addition, the Company may at its discretion withhold from any Deferral Election amounts, or any distributions made pursuant to Articles 7 and 8, any amounts required by applicable federal, state, and local tax laws.

**Article 15.<u>Amendment and Termination</u>.** The Plan may, at any time or from time to time, be amended, modified, or terminated at the sole and complete discretion of the Board of Directors. However, no amendment, modification, or termination of the Plan shall adversely affect such Participant's rights with respect to amounts then accrued in his Account.

**Article 16.<u>Enforceability and Controlling Law</u>.** If any provision of this Plan is held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. The provisions of this Plan shall be construed, administered, and enforced according to the laws of the State of Hawaii.

**Article 17.<u>Gender</u>.** Wherever any words are used under the Plan in the masculine, feminine, or neuter gender, they shall be construed as though they were also used in another gender in all cases where they would so apply.

**[Composite reflecting restatement effective as of June 28, 2013, and amendments effective as of July 24, 2015 and April 28, 2023]**

## Exhibit 31.1

**Exhibit 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**

I, Peter S. Ho, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of Bank of Hawaii Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | July 28, 2025 | /s/ Peter S. Ho |
| | | Peter S. Ho |
| | | Chief Executive Officer |

---

## Exhibit 31.2

**Exhibit 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**

I, Bradley S. Satenberg, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of Bank of Hawaii Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | July 28, 2025 | /s/ Bradley S. Satenberg |
| | | Bradley S. Satenberg |
| | | Chief Financial Officer |

---

## Ex-32

**Exhibit 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**

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Peter S. Ho, Chief Executive Officer, and I, Bradley S. Satenberg, Chief Financial Officer, of Bank of Hawaii Corporation (the "Company"), hereby certify that the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (the "Report"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: | July 28, 2025 | /s/ Peter S. Ho |
| | | Peter S. Ho |
| | | Chief Executive Officer |
| | | /s/ Bradley S. Satenberg |
| | | Bradley S. Satenberg |
| | | Chief Financial Officer |

---

<br>