Aloha, and welcome to the Annual Meeting of Stockholders of Bank of Hawaii Corporation. Please note that today's meeting is being recorded, and the recording will be available after the meeting on the company website. During the meeting, we'll have a question and answer session. You can submit questions or comments anytime by clicking on the Q&A icon. It is now my pleasure to turn today's meeting over to Peter Ho, Chairman, CEO, and President of Bank of Hawaii Corporation. Mr. Ho, the floor is yours.
Thank you, and good morning, everyone. I'm Peter Ho, and on behalf of our board of directors and management, I welcome you to the 52nd annual meeting of shareholders and our 5th virtual shareholders meeting. The virtual format has proven to be more efficient, allow the same or perhaps better opportunity for shareholder participation, as shareholders may now participate from anywhere they have internet connectivity, thus allowing for more shareholders to participate regardless of size, location, or resources. It's now 8:30 A.M., and in accordance with the notice of meeting, I will call the meeting to order. Now, I'd like to introduce the board of directors of Bank of Hawaii Corporation, who are all in attendance by phone. They are Raymond Vara, our Lead Independent Director, John Erickson, Joshua Feldman, Michelle Hulst, Kent Lucien, Elliot Mills, Alicia Moy, Victor Nichols, Dana Tokioka, Suzanne Vares-Lum, and Robert Wo.
Now, I'd like to introduce our management team, beginning with our Vice Chairs, Marco Abbruzzese, Matthew Emerson, Patrick McGuirk, James Polk, Bradley Shairson, and Dean Shigemura. Our Senior Executive Vice Presidents, Guy Churchill, Sharlene Ginoza-Lee, Jill Higa, Susan Ing, Edward Kim, Jennifer Lam, Taryn Salmon, Dana Takushi, Luke Yeh, and Dirk Yoshizawa. I would also like to introduce Michael Ching, representing Ernst & Young, our independent public accounting firm. You'll see the agenda on the meeting website, as well as a link to the rules and conduct for the meeting. We appreciate your cooperation in abiding by the meeting rules. As a reminder, shareholders attending the virtual meeting can vote their shares online from now through the closing of the polls by clicking the Vote icon on your screen.
If you have previously voted by proxy and do not wish to change your vote, your vote will be cast as you previously instructed, and no further action is required. During the business portion of the meeting, we will consider the following four proposals: the election of the company's directors, the advisory vote to approve the compensation for the named executive officers, the approval of the Bank of Hawaii Corporation 2024 Stock and Incentive Plan, and the ratification to reappoint Ernst & Young to serve as the company's independent registered public accounting firm for 2024. We will follow the formal business with our company report and current state of business. Following our report, you will have the opportunity to ask some questions. We ask that shareholders who wish to address the meeting do so at that time. Now, let's proceed with the meeting.
The board of directors fixed February 29, 2024, as a record date for determining the shares of common stock entitled to vote at this meeting. The company's corporate secretary has advised me that the meeting was called and proper notice was given to all shareholders of record. A copy of the Notice of Annual Meeting and an Affidavit of Mailing are on file. The number of shares representing in person or by proxy is 31,733,046, or 80% of the 39,771,110 shares issued and outstanding as of the record date. I hereby declare that a quorum is present, and we are qualified to act on all matters set forth in the notice of meeting.
Most of you who return your proxies authorize the persons named in the proxy to vote on all proposals coming before the meeting. We'll now act on the recommendations of the board of directors relating to the proposed proposals listed in the proxy statement. The first proposal is the election of 12 directors. The 12 nominees will serve a one-year term. They are as follows: John Erickson, Joshua Feldman, myself, Peter Ho, Michelle Hulst, Kent Lucien, Elliot Mills, Alicia Moy, Victor Nichols, Dana Tokioka, Raymond Vara, Suzanne Vares-Lum, and Robert Wo. As no other persons have been nominated in accordance with the company's governing documents, the nominations are now closed. The second proposal is to approve, on an advisory basis, the compensation of the named executive officers disclosed in this year's proxy statement. The third proposal is to approve the company's 2024 Stock Incentive Plan.
The final order of business is to ratify the reappointment of Ernst & Young as the company's independent registered public accounting firm for the fiscal year 2024. Before I report the preliminary vote results for these four proposals, has everyone who wanted to vote, cast their vote? Yes. It seems that all those desiring to vote have voted. I therefore declare the voting polls closed. I've been advised by our inspectors of election that in accordance with the proxies received from our shareholders, each of the director nominees received a substantial majority of votes cast of at least 24,619,887 votes in favor or 94% of votes cast.
With respect to Proposal Two related to the advisory vote on executive compensation, approximately 24,997,039 shares voted in favor, or 95% of votes cast. With respect to Proposal Three, related to the 2024 Stock Incentive Plan, approximately 24,344,323 shares voted in favor, or 93% of votes cast. With respect to Proposal Four, related to ratifying Ernst & Young as the company's 2024 independent registered public accounting firm, approximately 30,933,988 shares voted in favor, or 97% of votes cast.
Since we received more than a majority vote in favor of each nominee and each proposal, I'm therefore very pleased to announce that all 12 of the company's directors have been elected for a one-year term, and the three remaining proposals have been approved as the board recommended. The final results of the voting will be published in our Form 8-K and filed with the Securities and Exchange Commission. There being no further business to come before the meeting, this concludes the official business portion of the meeting. The 2024 Bank of Hawaii Corporation Annual Meeting is now adjourned. We'll now go to the Q&A session, but before we do that, I'm going to share some highlights for the year.
Now, before we get to the highlights, I'd like to acknowledge that this annual shareholders meeting marks the retirement of three longtime Bank of Hawaii Board of Directors, Haunani Apoliona, Barbara Tanabe, and Mark Burak. Both Haunani and Barbara were elected to the Bank of Hawaii Board in 1993, and subsequently to the Bank of Hawaii Corporation Board in 2004. And both made history as the first women of color to serve as directors of the company. Haunani's life's work is rooted in helping to advance Native Hawaiians, while Barbara spent her career in public affairs, crisis management, and journalism. Following a career as a bank executive, Mark joined our board in 2009 and has been invaluable in contributing to our long-term strategy and business performance evaluation process.
The wise counsel of these three directors will be missed, and we wish them all the best as they begin the next chapters of life. In May, we welcome new board director, Suzanne Vares-Lum, who's a former Army major general and current president of the East-West Center, which promotes understanding and relationships among the U.S., Asia, and the Pacific. Our board will be well served by her exceptional leadership experience and deep knowledge of the geographies in which we operate. I'd also like to recognize the retirement of two members of our executive committee. Mary Sellers, Vice Chair and Chief Risk Officer, joined the bank in 1987, and Sharon Crofts, Vice Chair, Operations and Technology, joined us in 1999. Mary and Sharon have dedicated tireless decades to the prosperity of our bank. We'll miss their leadership, sharp decision-making, and passion for our organization.
Taking over for Mary is Brad Shairson, who joined us last June and is now our Chief Risk Officer. Current Chief Information Officer, Taryn Salmon, has assumed Sharon's responsibilities, and I'm very excited for their leadership. Let me now share a few reflections on 2023, and then we'll move on to the Q&A section. 2023 was not a typical year. In March of last year, the failures of a few mainland regional banks created national uncertainty across the entire mid-sized banking sector. While the company's market capitalization was negatively affected, we saw no appreciable change in our business and the trust that our customers and business clients placed in Bank of Hawaii remained intact. We were bolstered by the strength of our brand, the loyalty of our long-tenured granular deposit base, and of course, the hard work and dedication of our employees.
As a result, with the market disruption subsided and the sector rebounded, Bank of Hawaii significantly outpaced its peers in recovering value. Then in the summer of 2023, our communities experienced unprecedented natural disaster events. Typhoon Mawar made landfall on Guam in May 2024, and wildfires ravaged Lahaina on Maui on August 8. In the face of devastating losses, Bank of Hawaii Ohana stepped up to support one another and the broader Guam and Maui communities. This included everything from emergency loans to mental health services and finding temporary housing assistance for our employees. Nearly 200 employees provided hands-on community support to local nonprofits, and our foundation donated nearly $160,000 in grants for immediate and long-term recovery efforts.
Supporting our communities is at the core of our culture, and in 2023, Bank of Hawaii, our employees and our foundation contributed nearly $3 million in community and philanthropic causes. Despite the challenges of 2023, Bank of Hawaii remains resilient and emerged financially stronger year-over-year. Our performance reflects a stable deposit base, ample liquidity, and a strong credit profile. Diluted earnings per share were at $4.14 for the full year, and net income was $1 billion. We were once again able to grow loans in our uniquely durable market. Our loan portfolio remains well diversified across both residential and commercial banking loans and lines. We saw loans grow to $14 billion, a 2.3% increase from 2022.
We ended the year with total deposits of $21.1 billion, up 2.1% for the year. 53% of those deposits have a tenure of 20 years or more, and 75% of our deposits have a tenure of 10 years or more.... Liquidity continued to be strong. For the fourth quarter of 2023, our non-performing asset levels were low at 0.08%, and our net charge-off rate was only 0.05%. We remain well capitalized and continued to grow capital above the regulatory minimum. At year-end, we had readily available liquidity of $10.2 billion. We finished 2023 with total assets of $23.7 billion, an increase of 0.5% compared to 2022. And finally, we maintained our dividend at $0.70 per quarter through 2023.
We value the trust our community puts in us. In 2023, we were honored to be recognized by Newsweek, both nationally and globally. We ranked number 4 in the banking industry among the Most Trustworthy Companies in America for the second year in a row, and we're the only Hawaii business listed. We were also ranked number 24 in the banking industry worldwide among its World's Most Trustworthy Companies. In addition, we were once again selected as Hawaii's Best Bank by the readers of the Honolulu Star-Advertiser, Hawaii Tribune-Herald, and West Hawaii Today. Looking beyond 2023, we're confident that our strong financial performance, our commitment to our core values, and dedication to exceeding our customer expectations, positions Bank of Hawaii well into the future. Now we'd be happy to go into the Q&A session.
So we've got a number of questions that have come over the past couple of days. Let me begin with the one that we received, I believe it was yesterday or the day before, from a gentleman who had several questions. I'll get to the crux of those. But for the first, he actually asked four questions, and we'll send along a detailed response, but let me synopsize on the live mic, if you will. First question relates to the Silicon Valley Bank situation of just over a year ago. And basically, the question is, SVB had done next to nothing to prepare to take on emergency loans from the Fed. Have we done what needs to be done such that BOH may have access to Fed loans?
Yeah, the answer to the question is that was a very extreme period for the industry last year as Silicon Valley Bank and a few other regional banks failed. I think the important thing to take away from that is Bank of Hawaii and our operation and our financials performed quite well through that rather stressed period. Specific to the question, though, yes, we do periodically test the processes to enable us to get through to the Federal Reserve and other resources from a liquidity standpoint. As I mentioned, I think earlier, we also have built our readily available liquidity position to just over $10 billion as of the end of the first quarter.
The other questions that the gentleman had relate to commercial real estate, which I know is a big issue within the industry right now. Question is, the banks nationwide are facing huge losses on loans for office buildings. Can you comment on, I guess, that sector as well as the overall commercial real estate portfolio for Bank of Hawaii? I guess I'd begin by saying our commercial real estate portfolio skews a little smaller than the average regional bank. So our exposure relative to the industry is a little undersized. Our credit quality across each of the CRE sectors remains excellent. We're very granular in this space. No sector within this category is greater than 6.5% of total loans, and our weighted average loan-to-value.
So the amount of lending we have against any particular asset, on average, is below 60%. So, a very conservative loan posture. Specific to the office exposure, a couple of thoughts there. Office for us is a pretty small category. It's only 3% of our total loans, on our overall portfolio. And the Hawaii office sector, probably not surprisingly, is not a dominant sector, real estate sector here in the islands. It's generally pretty small, and has actually been shrinking over the last decade.
So compared to other markets that had grown dramatically over the past several years, the Hawaii commercial office market actually has been in a state of shrinkage, really as a number of buildings have been converted from office use to residential uses, as I think most people on the call would appreciate that, housing is just a big, big issue for us here in the islands. But thanks for that question. Another question relates to the unrealized loss portion of our securities portfolio. As interest rates have risen over the past year plus, most banks in the industry have some portion of unrealized losses in their portfolio, Bank of Hawaii being no different.
For us, we don't see this as a major concern, mainly because we don't intend to sell the securities, rather to recover them over their amortized life. And secondarily, I'd say, we have ample liquidity to back up those securities to the extent that we needed to sell all or a portion of them. We have $10.3 billion, as I mentioned, in readily available liquidity as backup. Finally, the fine gentleman asks about our FDIC coverage. So different from Silicon Valley Bank and Signature Bank and some of the banks that failed last year, we have a pretty high percentage of deposits that are either insured or collateralized, fully collateralized. So that number combines to 58%. 49% of our deposits are insured, another 9% are fully collateralized.
And so for the uncollateralized portion, we have more than ample liquidity coverage to support both the uncollateralized or uninsured portion of our deposit base. We also had a question that came in from our friend, Mr. Yap. And there are a number of questions, but I think I'll kind of try to paraphrase here into kind of what the big themes are, Mr. Yap. First question is around the buyback. The question is: Are you buying back stock? Where we are and where the, I think the industry largely is, is in a period of I'd say a fair amount of uncertainty. And so, from our perspective, the question is around buying back stock or building capital.
I think in this environment, it makes sense for us to be building capital, so we really have not repurchased stock through you know through this past year. And I think that's likely to be the case for us, you know, for the next several quarters. As conditions change, our view on that, I suspect, will change, but for now, I think just given the relative uncertainty in the marketplace, we'll be in a posture of building capital versus buying back stock. The other question is similar to the prior gentleman around: How did the loan and bond departments avoid the CRE bloodbath on the mainland? I'm not sure I'd characterize it as a bloodbath, but I do understand the sensitivity around commercial real estate, particularly on the mainland.
And, you know, I think the important thing to note here is our bond portfolio is made up largely of government supported obligations. So there's no real credit risk per se in that portfolio. And our commercial real estate portfolio is largely, but for just a small percentage points, concentrated here in the islands and really in the markets that we understand best, and that's really one of the major lending tenets of our organization. So thank you for giving us the opportunity to highlight that. Another question from Mr. Yap around our mortgage and auto and credit card late payments and just overall credit quality being lagging, or I take that to mean being better than the mainland's delinquency rates. Yes, that's true.
Generally, credit loss rates in the islands outperform the broader mainland market for lots of different reasons, I think. Bank of Hawaii's loss statistics, as I quoted earlier, are in very, very good shape and really reflect very positively against the broader average of the industry. So, Mr. Yap, thank you for those questions, and I appreciate hearing from you again. We have another question around the composition of our board. I think really relating to the size of our board as well as the composition of our board. We certainly will miss Haunani and Barbara and Mark for sure. The question really speaks around diversity and specifically female women membership on the board.
I'm very proud of our, of our track record there. Diversity and, and having, women or female representation on our board is, critically important and vital to us. It's part of what makes us a successful organization. And I think we will continue on even as Barbara and Haunani step off. Our percentages remain very strong there. And the question around why are we going from 15 to 12? Really, it's, it's the, the, the situation is that, we actually flexed up the board size to 15, in anticipation of a lot of the retirements and transitions coming. So one of the things that's very important to our organization is to have very orderly and well-thought-out transitions that, that goes for management as well as our board of directors.
What we did was we basically wanted to create a good amount of overlap with newer board members, overlapping with retiring or soon to be retiring board members. And now with Haunani and Mark and Barbara retiring off, we now go down to 12. So thanks for the question. It's a good one. Another question that came in this morning, similar to some of the others, relating to our stock movement through the aftershocks relating to the regional bank crisis. It's true, we saw in the early days a pretty significant downdraft in our stock value. We were pleased to see that situation recovered quite nicely over the balance of the year.
Interestingly, you know, if you look at the stock price at the end of 2022 versus the end of 2023, you almost wouldn't realize that there was a situation of that magnitude during the course of the year. But that's not to say or take for granted the fact that there was a fair amount of price action in between those two data points.
I think kind of to get to the crux of the question, I think when people think about the intrinsic strengths of the organization, when they think about kind of the real issues confronting the sector, certainly in that extreme period and today, I think people come away feeling very strongly about the Bank of Hawaii franchise, and that really is reflected in the valuations, both price to book as well as price to earnings, that we garner right now in the stock price relative to our peers. This gentleman also had, or Lon also had a question around the format of our meeting. Why, you know, we could do hybrid, we could do virtual as we're doing right now, or we could do in person.
We have thought around each of those categories. This is a work in process. We seem to think that or we think that the virtual format is going well for us, but your question around whether or not to switch to a hybrid is one that we'll certainly take into consideration for future annual meetings as we go forward. Thank you for the question. Any other questions? Is that it? Okay, well, thank you for those questions. They were, I thought, incredibly insightful and well thought out. I hope the others on the call thought so as well. Thank you for your interest in Bank of Hawaii, and please have a great weekend and the rest of your day.
This concludes the meeting. You may now disconnect.