Bank of Hawaii Corporation Second Quarter 2017 Financial Results

July 24, 2017

Diluted Earnings Per Share $1.05
Net Income $44.7 Million
Board of Directors Increases Dividend to $0.52 Per Share

HONOLULU--(BUSINESS WIRE)--Jul. 24, 2017-- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $1.05 for the second quarter of 2017, down from diluted earnings per share of $1.20 in the previous quarter and up from diluted earnings per share of $1.03 in the same quarter last year. Net income for the second quarter of 2017 was $44.7 million compared with net income of $51.2 million in the first quarter of 2017 and net income of $44.2 million in the second quarter of 2016. Income for the first quarter of 2017 included sales of $12.5 million in Visa Class B shares. There were no sales of Visa shares during the second quarter of 2017 or the second quarter of 2016.

Loan and lease balances increased to $9.4 billion at June 30, 2017, up 3.0 percent from March 31, 2017 and up 12.7 percent compared with June 30, 2016. Deposits grew 2.1 percent during the second quarter as balances increased to $14.8 billion at June 30, 2017 compared with $14.5 billion at March 31, 2017 and $13.6 billion at June 30, 2016.

“Bank of Hawaii Corporation continued to perform well during the second quarter of 2017,” said Peter Ho, Chairman, President and CEO. “Our loans and deposits continued to grow, our margin improved, expenses were well controlled, and our asset quality remains strong. We are also pleased to increase the dividend to our shareholders for the third time in the past eighteen months.”

The return on average assets for the second quarter of 2017 was 1.09 percent, down from 1.26 percent in the previous quarter and 1.14 percent in the same quarter last year. The return on average equity for the second quarter of 2017 was 14.87 percent, down from 17.63 percent for the first quarter of 2017 and 15.56 percent in the second quarter of 2016. The efficiency ratio for the second quarter of 2017 was 55.99 percent compared with 53.42 percent in the previous quarter and 57.35 percent in the same quarter last year.

For the six-month period ended June 30, 2017, net income was $95.8 million, an increase of $1.4 million from net income of $94.5 million during the same period last year. Diluted earnings per share were $2.24 for the first half of 2017, an increase from diluted earnings per share of $2.19 for the first half of 2016. The return on average assets for the six-month period ended June 30, 2017 was 1.17 percent compared with 1.22 percent for the same six months in 2016. The year-to-date return on average equity was 16.22 percent for the first half of 2017 compared with 16.71 percent for the six month period ended June 30, 2016. The efficiency ratio for the first half of 2017 improved to 54.67 percent compared with 56.08 percent in the same period last year.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the second quarter of 2017 was $115.3 million, an increase of $2.4 million compared with net interest income of $112.9 million in the first quarter of 2017 and an increase of $8.8 million compared with net interest income of $106.5 million in the second quarter of 2016. Net interest income for the first half of 2017 was $228.3 million, an increase of $15.7 million compared with net interest income of $212.6 million for the first half of 2016. Analyses of the changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin was 2.92 percent for the second quarter of 2017, up 3 basis points from the net interest margin of 2.89 percent in the previous quarter and a 7 basis point increase from the net interest margin of 2.85 percent in the second quarter of 2016. The net interest margin for the first six months of 2017 was 2.90 percent compared with 2.86 percent for the same six-month period last year.

Results for the second quarter of 2017 included a provision for credit losses of $4.3 million compared with a provision for credit losses of $4.4 million in the previous quarter and a provision for credit losses of $1.0 million in the same quarter last year. The provision for credit losses during the first half of 2017 was $8.7 million compared with a negative provision of $1.0 million during the same period in 2016. Provision expense for the first half of 2016 reflects a recovery of $6.6 million related to one commercial client in Guam.

Noninterest income was $45.2 million in the second quarter of 2017, a decrease of $10.7 million compared with noninterest income of $55.9 million in the first quarter of 2017 and a decrease of $1.3 million compared with noninterest income of $46.5 million in the second quarter of 2016. There were no significant items in noninterest income during the second quarter of 2017. Noninterest income in the first quarter of 2017 included the previously mentioned gain of $12.5 million resulting from the sale of 90,000 Visa Class B shares. Noninterest income in the second quarter of 2016 included a service fee of $1.2 million resulting from the sale of trust real estate. Noninterest income for the first half of 2017 was $101.2 million, a decrease of $1.5 million compared with noninterest income of $102.7 million for the first half of 2016.

Noninterest expense was $88.2 million in the second quarter of 2017, a decrease of $0.4 million compared with noninterest expense of $88.6 million in the first quarter of 2017 and an increase of $2.1 million compared with noninterest expense of $86.1 million in the second quarter last year. There were no significant items in noninterest expense during the second quarter of 2017. Noninterest expense in the first quarter of 2017 included seasonal payroll expenses of approximately $2.5 million. Noninterest expense in the second quarter of 2016 included a net gain of $1.3 million from the sale of bank-owned real estate property. An analysis of noninterest expenses related to salaries and benefits is included in Table 9. Noninterest expense for the first half of 2017 was $176.8 million, an increase of $3.3 million compared with noninterest expense of $173.5 million for the first half of 2016.

The effective tax rate for the second quarter of 2017 was 31.37 percent compared with 29.72 percent in the previous quarter and 29.77 percent in the same quarter last year. The lower effective tax rate for the first quarter of 2017 was due to the adoption of an accounting change related to the exercise of stock options and the vesting of restricted stock. The lower effective tax rate in second quarter of 2016 was primarily due to the release of state tax reserves. The effective tax rate for the first half of 2017 was 30.50 percent compared with 30.98 percent during the same period last year.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury & Other. Their results are determined based on the Company’s internal financial management reporting process and organizational structure. Selected financial information for the business segments is included in Tables 13a and 13b.

Asset Quality

The Company’s asset quality continued to remain solid during the second quarter of 2017. Total non-performing assets were $16.4 million at June 30, 2017, down $2.6 million from non-performing assets of $19.0 million at March 31, 2017 and up $0.1 million from non-performing assets of $16.3 million at June 30, 2016. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.17 percent at the end of the second quarter of 2017, down from 0.21 percent at the end of the first quarter of 2017 and down from 0.20 percent at the end of the second quarter last year.

Accruing loans and leases past due 90 days or more were $7.0 million at June 30, 2017, up from $5.9 million at March 31, 2017 and down from $8.8 million at June 30, 2016. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $53.2 million at June 30, 2017, an increase from $53.0 million at March 31, 2017 and $52.2 million at June 30, 2016. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loan and lease charge-offs during the second quarter of 2017 were $3.0 million or 0.13 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $5.5 million during the quarter were partially offset by recoveries of $2.5 million. Net charge-offs during the first quarter of 2017 were $3.6 million or 0.16 percent annualized of total average loans and leases outstanding and comprised of $5.7 million in charge-offs and recoveries of $2.1 million. Net charge-offs during the second quarter of 2016 were $1.7 million or 0.09 percent annualized of total average loans and leases outstanding and comprised of $3.7 million in charge-offs and recoveries of $2.0 million. Net charge-offs during the first half of 2017 were $6.6 million or 0.15 percent annualized of total average loans and leases outstanding compared with net recoveries of $2.1 million for the first half of 2016. Results for the first half of 2016 include the previously mentioned recovery related to one commercial client in Guam.

The allowance for loan and lease losses increased to $106.4 million at June 30, 2017 compared with $105.1 million at March 31, 2017 and $103.9 million at June 30, 2016. The ratio of the allowance for loan and lease losses to total loans and leases was 1.13 percent at June 30, 2017, a decrease of 2 basis points from the previous quarter and 12 basis points from the second quarter last year. The allowance for loan and lease losses at June 30, 2017 is commensurate with the Company’s asset quality and the Hawaii economy. As a result of continued strong growth in Hawaii commercial lending, the reserve for unfunded commitments was increased to $6.8 million at June 30, 2017 compared with the reserve for unfunded commitments of $6.6 million at March 31, 2017 and June 30, 2016. Details of loan and lease charge-offs, recoveries and the components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets were $17.0 billion at June 30, 2017, up from total assets of $16.7 billion at March 31, 2017 and up from total assets of $15.9 billion at June 30, 2016. Average total assets increased to $16.5 billion during the second quarter of 2017, up from $16.4 billion during the previous quarter and $15.6 billion during the same quarter last year.

The investment securities portfolio was $6.1 billion at June 30, 2017, down from $6.2 billion at March 31, 2017 and up from $6.0 billion at June 30, 2016. The portfolio remains largely comprised of securities issued by U. S. government agencies and included $3.8 billion in securities held to maturity and $2.3 billion in securities available for sale at June 30, 2017.

Total loans and leases were $9.4 billion at June 30, 2017, up from total loans and leases of $9.1 billion at March 31, 2017 and up from total loans and leases of $8.3 billion at June 30, 2016. Average total loans and leases increased to $9.2 billion during the second quarter of 2017, up from $9.0 billion during the previous quarter and $8.2 billion during the same quarter last year.

The commercial loan portfolio was $3.7 billion at June 30, 2017, up from $3.6 billion at March 31, 2017 and $3.3 billion at June 30, 2016. The consumer loan portfolio was $5.7 billion at June 30, 2017, up from $5.5 billion at March 31, 2017 and $5.0 billion at June 30, 2016. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $14.8 billion at June 30, 2017, up from total deposits of $14.5 billion at March 31, 2017 and up from total deposits of $13.6 billion at June 30, 2016. Average total deposits increased to $14.3 billion during the second quarter of 2017, up from $14.2 billion during the previous quarter and $13.5 billion during the same quarter last year.

Consumer deposits were $7.3 billion at June 30, 2017, up from $7.2 billion at March 31, 2017 and $6.6 billion at June 30, 2016. Commercial deposits were $5.9 billion at June 30, 2017, down from $6.1 billion at March 31, 2017 and up from $5.7 billion at June 30, 2016. Other deposits, including public funds, were $1.6 billion at June 30, 2017, up from $1.2 billion at March 31, 2017 and $1.3 billion at June 30, 2016. Deposit balances are summarized in Tables 7 and 10.

During the second quarter of 2017, the Company repurchased 123.1 thousand shares of common stock at a total cost of $9.9 million under its share repurchase program. The average cost was $80.28 per share repurchased. From the beginning of the share repurchase program initiated during July of 2001 through June 30, 2017, the Company has repurchased 53.9 million shares and returned over $2.0 billion to shareholders at an average cost of $38.04 per share. Remaining buyback authority under the share repurchase program was $45.5 million at June 30, 2017. From July 3 through July 21, 2017, the Company repurchased an additional 42.0 thousand shares of common stock at an average cost of $82.52 per share.

Total shareholders’ equity increased to $1.2 billion at June 30, 2017. At June 30, 2017, the Tier 1 Capital Ratio was 13.34 percent compared with 13.41 percent at March 31, 2017 and 13.66 percent at June 30, 2016. The Tier 1 leverage ratio at June 30, 2017 was 7.37 percent compared with 7.29 percent at March 31, 2017 and June 30, 2016.

The Company’s Board of Directors declared a quarterly cash dividend of $0.52 per share on the Company’s outstanding shares. The dividend will be payable on September 15, 2017 to shareholders of record at the close of business on August 31, 2017.

Hawaii Economy

Economic conditions in Hawaii continue to remain positive due to the active construction industry, growing tourism and a strong real estate market. The statewide seasonally-adjusted unemployment rate in Hawaii remains among the lowest in the United States at 2.7 percent in June 2017 compared to 4.4 percent nationally. For the first five months of 2017, total visitor spending increased 9.8 percent and visitor arrivals increased 4.2 percent compared to the same period in 2016. Year-to-date, all four of Hawaii’s largest visitor markets, U. S. West, U. S. East, Japan, and Canada, have reported strong growth compared with the first five months of 2016. For the first six months of 2017, the volume of single-family home sales on Oahu increased 4.4 percent compared with the same period in 2016. The volume of condominium sales on Oahu increased 6.0 percent compared with the same period in 2016. During the first half of 2017 the median sales price of single-family homes on Oahu was 3.2 percent higher and the median sales price of a condominium was 3.6 percent higher compared with 2016. As of June 30, 2017, months of inventory of single-family homes and condominiums on Oahu remained low at approximately 2.7 months and 2.8 months, respectively. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its second quarter 2017 financial results today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time). The call will be accessible via teleconference and via the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. The toll-free number is 1 (844) 543-5235 in the United States and 1 (703) 318-2209 for international callers. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, July 24, 2017. The replay number is 1 (855) 859-2056 in the United States and 1 (404) 537-3406 from international locations. Enter the pass code 47737328 when prompted. Participants can also dial 1 (800) 585-8367 to access the replay. In addition, a replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2016, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.

Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers, and governments in Hawaii, American Samoa, and the West Pacific. The Company’s principal subsidiary, Bank of Hawaii, was founded in 1897. For more information about Bank of Hawaii Corporation, see the Company’s web site, www.boh.com.


Bank of Hawaii Corporation and Subsidiaries
Financial Highlights													Table 1
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands, except per share amounts)	2017			2017			2016			2017			2016
For the Period:
Operating Results
Net Interest Income	$	112,279		$	109,872		$	103,550		$	222,151		$	206,574
Provision for Credit Losses		4,250			4,400			1,000			8,650			(1,000	)
Total Noninterest Income		45,236			55,916			46,519			101,152			102,726
Total Noninterest Expense		88,189			88,568			86,071			176,757			173,457
Net Income		44,662			51,176			44,245			95,838			94,455
Basic Earnings Per Share		1.05			1.21			1.04			2.26			2.21
Diluted Earnings Per Share		1.05			1.20			1.03			2.24			2.19
Dividends Declared Per Share		0.50			0.50			0.48			1.00			0.93

Performance Ratios
Return on Average Assets		1.09	%		1.26	%		1.14	%		1.17	%		1.22		%
Return on Average Shareholders' Equity		14.87			17.63			15.56			16.22			16.71
Efficiency Ratio ¹		55.99			53.42			57.35			54.67			56.08
Net Interest Margin ²		2.92			2.89			2.85			2.90			2.86
Dividend Payout Ratio ³		47.62			41.32			46.15			44.25			42.08
Average Shareholders' Equity to Average Assets		7.30			7.16			7.31			7.23			7.29

Average Balances
Average Loans and Leases	$	9,217,779		$	9,020,351		$	8,205,104		$	9,119,610		$	8,072,600
Average Assets		16,495,925			16,434,606			15,639,596			16,465,435			15,588,335
Average Deposits		14,253,149			14,218,886			13,453,953			14,236,112			13,394,251
Average Shareholders' Equity		1,204,837			1,177,326			1,143,884			1,191,157			1,136,722

Per Share of Common Stock
Book Value	$	28.45		$	27.92		$	26.96		$	28.45		$	26.96
Tangible Book Value		27.72			27.18			26.23			27.72			26.23
Market Value
Closing		82.97			82.36			68.80			82.97			68.80
High		84.99			90.80			72.77			90.80			72.77
Low		75.92			77.03			64.96			75.92			54.55

				June 30,			March 31,			December 31,			June 30,
				2017			2017			2016			2016
As of Period End:
Balance Sheet Totals
Loans and Leases				$	9,387,613		$	9,113,809		$	8,949,785		$	8,331,469
Total Assets					16,981,292			16,664,215			16,492,367			15,860,901
Total Deposits					14,784,649			14,476,533			14,320,240			13,643,807
Other Debt					267,904			267,921			267,938			267,970
Total Shareholders' Equity					1,213,757			1,193,137			1,161,537			1,157,219

Asset Quality
Non-Performing Assets				$	16,368		$	19,003		$	19,761		$	16,280
Allowance for Loan and Lease Losses					106,353			105,064			104,273			103,932
Allowance to Loans and Leases Outstanding					1.13	%		1.15	%		1.17	%		1.25		%

Capital Ratios
Common Equity Tier 1 Capital Ratio					13.34	%		13.41	%		13.24	%		13.66		%
Tier 1 Capital Ratio					13.34			13.41			13.24			13.66
Total Capital Ratio					14.58			14.66			14.49			14.91
Tier 1 Leverage Ratio					7.37			7.29			7.21			7.29
Total Shareholders' Equity to Total Assets					7.15			7.16			7.04			7.30
Tangible Common Equity to Tangible Assets ⁴					6.97			6.98			6.86			7.11
Tangible Common Equity to Risk-Weighted Assets⁴					13.01			13.04			12.81			13.49

Non-Financial Data
Full-Time Equivalent Employees					2,142			2,115			2,122			2,136
Branches					69			69			69			70
ATMs					388			441			449			451

¹ Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).

² Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.

³ Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.

⁴Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 “Reconciliation of Non-GAAP Financial Measures."


Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures										Table 2
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands)	2017			2017			2016			2016

Total Shareholders' Equity	$	1,213,757		$	1,193,137		$	1,161,537		$	1,157,219
Less: Goodwill		31,517			31,517			31,517			31,517
Tangible Common Equity	$	1,182,240		$	1,161,620		$	1,130,020		$	1,125,702

Total Assets	$	16,981,292		$	16,664,215		$	16,492,367		$	15,860,901
Less: Goodwill		31,517			31,517			31,517			31,517
Tangible Assets	$	16,949,775		$	16,632,698		$	16,460,850		$	15,829,384

Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements	$	9,087,057		$	8,908,024		$	8,823,485		$	8,343,158

Total Shareholders' Equity to Total Assets		7.15	%		7.16	%		7.04	%		7.30	%
Tangible Common Equity to Tangible Assets (Non-GAAP)		6.97	%		6.98	%		6.86	%		7.11	%

Tier 1 Capital Ratio		13.34	%		13.41	%		13.24	%		13.66	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)		13.01	%		13.04	%		12.81	%		13.49	%


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income											Table 3
	Three Months Ended								Six Months Ended
	June 30,			March 31,		June 30,			June 30,
(dollars in thousands, except per share amounts)	2017			2017		2016			2017		2016
Interest Income
Interest and Fees on Loans and Leases	$	90,909		$	87,937	$	82,323		$	178,846	$	163,218
Income on Investment Securities
Available-for-Sale		11,835			11,084		10,521			22,919		21,335
Held-to-Maturity		19,918			19,706		20,168			39,624		40,559
Deposits		2			5		2			7		6
Funds Sold		696			890		618			1,586		1,371
Other		208			230		153			438		365
Total Interest Income		123,568			119,852		113,785			243,420		226,854
Interest Expense
Deposits		4,998			3,691		3,081			8,689		5,967
Securities Sold Under Agreements to Repurchase		5,079			5,185		6,134			10,264		12,287
Funds Purchased		39			3		3			42		6
Short-Term Borrowings		64			-		-			64		-
Other Debt		1,109			1,101		1,017			2,210		2,020
Total Interest Expense		11,289			9,980		10,235			21,269		20,280
Net Interest Income		112,279			109,872		103,550			222,151		206,574
Provision for Credit Losses		4,250			4,400		1,000			8,650		(1,000	)
Net Interest Income After Provision for Credit Losses		108,029			105,472		102,550			213,501		207,574
Noninterest Income
Trust and Asset Management		11,796			11,479		12,707			23,275		23,963
Mortgage Banking		3,819			3,300		4,088			7,119		7,277
Service Charges on Deposit Accounts		8,009			8,325		8,150			16,334		16,593
Fees, Exchange, and Other Service Charges		13,965			13,332		13,978			27,297		27,422
Investment Securities Gains (Losses), Net		(520	)		12,133		(312	)		11,613		10,868
Annuity and Insurance		2,161			1,995		2,006			4,156		3,907
Bank-Owned Life Insurance		1,550			1,497		1,551			3,047		3,099
Other		4,456			3,855		4,351			8,311		9,597
Total Noninterest Income		45,236			55,916		46,519			101,152		102,726
Noninterest Expense
Salaries and Benefits		50,113			51,602		50,289			101,715		100,803
Net Occupancy		8,131			8,168		7,158			16,299		14,161
Net Equipment		5,706			5,501		5,065			11,207		10,474
Data Processing		3,881			3,410		3,972			7,291		7,923
Professional Fees		2,592			2,779		2,047			5,371		4,686
FDIC Insurance		2,097			2,209		2,144			4,306		4,496
Other		15,669			14,899		15,396			30,568		30,914
Total Noninterest Expense		88,189			88,568		86,071			176,757		173,457
Income Before Provision for Income Taxes		65,076			72,820		62,998			137,896		136,843
Provision for Income Taxes		20,414			21,644		18,753			42,058		42,388
Net Income	$	44,662		$	51,176	$	44,245		$	95,838	$	94,455
Basic Earnings Per Share	$	1.05		$	1.21	$	1.04		$	2.26	$	2.21
Diluted Earnings Per Share	$	1.05		$	1.20	$	1.03		$	2.24	$	2.19
Dividends Declared Per Share	$	0.50		$	0.50	$	0.48		$	1.00	$	0.93
Basic Weighted Average Shares		42,353,976			42,406,006		42,729,731			42,379,730		42,825,369
Diluted Weighted Average Shares		42,658,885			42,749,866		42,942,960			42,704,010		43,033,199


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income									Table 4
	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,
(dollars in thousands)	2017		2017		2016		2017		2016
Net Income	$	44,662	$	51,176	$	44,245	$	95,838	$	94,455
Other Comprehensive Income, Net of Tax:
Net Unrealized Gains on Investment Securities		3,106		4,894		5,157		8,000		13,851
Defined Benefit Plans		147		146		141		293		282
Total Other Comprehensive Income		3,253		5,040		5,298		8,293		14,133
Comprehensive Income	$	47,915	$	56,216	$	49,543	$	104,131	$	108,588


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands)	2017			2017			2016			2016
Assets
Interest-Bearing Deposits in Other Banks	$	3,913		$	3,486		$	3,187		$	3,819
Funds Sold		742,221			620,065			707,343			615,395
Investment Securities
Available-for-Sale		2,316,728			2,341,570			2,186,041			2,299,638
Held-to-Maturity (Fair Value of $3,785,641; $3,848,609; $3,827,527; and $3,890,220)		3,782,702			3,848,088			3,832,997			3,798,200
Loans Held for Sale		20,354			20,899			62,499			105,824
Loans and Leases		9,387,613			9,113,809			8,949,785			8,331,469
Allowance for Loan and Lease Losses		(106,353	)		(105,064	)		(104,273	)		(103,932	)
Net Loans and Leases		9,281,260			9,008,745			8,845,512			8,227,537
Total Earning Assets		16,147,178			15,842,853			15,637,579			15,050,413
Cash and Due from Banks		128,093			119,972			169,077			133,836
Premises and Equipment, Net		119,569			114,865			113,505			109,832
Accrued Interest Receivable		46,595			48,654			46,444			45,709
Foreclosed Real Estate		1,991			2,529			1,686			1,728
Mortgage Servicing Rights		24,471			24,291			23,663			19,631
Goodwill		31,517			31,517			31,517			31,517
Bank-Owned Life Insurance		277,235			275,685			274,188			271,274
Other Assets		204,643			203,849			194,708			196,961
Total Assets	$	16,981,292		$	16,664,215		$	16,492,367		$	15,860,901

Liabilities
Deposits
Noninterest-Bearing Demand	$	4,706,962		$	4,593,783		$	4,772,727		$	4,383,496
Interest-Bearing Demand		3,029,549			2,886,573			2,934,107			2,838,744
Savings		5,364,191			5,596,080			5,395,699			5,165,808
Time		1,683,947			1,400,097			1,217,707			1,255,759
Total Deposits		14,784,649			14,476,533			14,320,240			13,643,807
Funds Purchased		-			4,616			9,616			7,333
Securities Sold Under Agreements to Repurchase		505,292			505,292			523,378			586,785
Other Debt		267,904			267,921			267,938			267,970
Retirement Benefits Payable		48,346			48,436			48,451			47,438
Accrued Interest Payable		5,105			6,410			5,334			5,532
Taxes Payable and Deferred Taxes		31,444			42,046			21,674			20,979
Other Liabilities		124,795			119,824			134,199			123,838
Total Liabilities		15,767,535			15,471,078			15,330,830			14,703,682
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2017 - 57,972,647 / 42,655,954; March 31, 2017 - 57,962,462 / 42,736,032; December 31, 2016 - 57,856,672 / 42,635,978; and June 30, 2016 - 57,856,419 / 42,916,163)		576			576			576			576
Capital Surplus		556,409			553,898			551,628			546,928
Accumulated Other Comprehensive Loss		(25,613	)		(28,866	)		(33,906	)		(9,424	)
Retained Earnings		1,468,328			1,444,495			1,415,440			1,370,308
Treasury Stock, at Cost (Shares: June 30, 2017 - 15,316,693; March 31, 2017 - 15,226,430; December 31, 2016 - 15,220,694; and June 30, 2016 - 14,940,256)		(785,943	)		(776,966	)		(772,201	)		(751,169	)
Total Shareholders' Equity		1,213,757			1,193,137			1,161,537			1,157,219
Total Liabilities and Shareholders' Equity	$	16,981,292		$	16,664,215		$	16,492,367		$	15,860,901


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																Table 6
							Accum.
							Other
							Compre-
							hensive
	Common Shares		Common		Capital		Income			Retained			Treasury
(dollars in thousands)	Outstanding		Stock		Surplus		(Loss)			Earnings			Stock			Total
Balance as of December 31, 2016	42,635,978		$	576	$	551,628	$	(33,906	)	$	1,415,440		$	(772,201	)	$	1,161,537
Net Income	-			-		-		-			95,838			-			95,838
Other Comprehensive Income	-			-		-		8,293			-			-			8,293
Share-Based Compensation	-			-		3,726		-			-			-			3,726
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits	275,605			-		1,055		-			(162	)		7,545			8,438
Common Stock Repurchased	(255,629	)		-		-		-			-			(21,287	)		(21,287	)
Cash Dividends Declared ($1.00 per share)	-			-		-		-			(42,788	)		-			(42,788	)
Balance as of June 30, 2017	42,655,954		$	576	$	556,409	$	(25,613	)	$	1,468,328		$	(785,943	)	$	1,213,757

Balance as of December 31, 2015	43,282,153		$	575	$	542,041	$	(23,557	)	$	1,316,260		$	(719,059	)	$	1,116,260
Net Income	-			-		-		-			94,455			-			94,455
Other Comprehensive Income	-			-		-		14,133			-			-			14,133
Share-Based Compensation	-			-		3,314		-			-			-			3,314
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits	201,445			1		1,573		-			(277	)		4,900			6,197
Common Stock Repurchased	(567,435	)		-		-		-			-			(37,010	)		(37,010	)
Cash Dividends Declared ($0.93 per share)	-			-		-		-			(40,130	)		-			(40,130	)
Balance as of June 30, 2016	42,916,163		$	576	$	546,928	$	(9,424	)	$	1,370,308		$	(751,169	)	$	1,157,219


Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis															Table 7a
	Three Months Ended						Three Months Ended						Three Months Ended
	June 30, 2017						March 31, 2017						June 30, 2016
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	3.6	$	-	0.29	%	$	3.3	$	-	0.57	%	$	4.0	$	-	0.17	%
Funds Sold		353.5		0.7	0.78			544.1		0.9	0.65			526.8		0.6	0.46
Investment Securities
Available-for-Sale
Taxable		1,683.4		8.4	1.98			1,625.4		7.5	1.87			1,619.7		6.9	1.72
Non-Taxable		658.9		5.4	3.26			660.7		5.4	3.26			691.8		5.5	3.17
Held-to-Maturity
Taxable		3,596.1		18.4	2.05			3,589.8		18.2	2.03			3,639.5		18.6	2.05
Non-Taxable		240.9		2.3	3.88			241.8		2.4	3.89			244.6		2.4	3.91
Total Investment Securities		6,179.3		34.5	2.23			6,117.7		33.5	2.19			6,195.6		33.4	2.16
Loans Held for Sale		23.8		0.2	4.04			30.4		0.3	3.99			19.9		0.2	3.64
Loans and Leases ¹
Commercial and Industrial		1,251.2		10.9	3.51			1,263.7		10.5	3.38			1,176.0		9.8	3.36
Commercial Mortgage		1,946.3		18.4	3.80			1,881.5		17.5	3.76			1,686.7		16.4	3.91
Construction		240.0		2.8	4.70			259.1		2.9	4.54			210.8		2.3	4.44
Commercial Lease Financing		208.0		1.2	2.27			208.7		1.1	2.18			196.4		1.2	2.36
Residential Mortgage		3,272.7		31.1	3.80			3,201.7		30.9	3.86			3,005.4		30.1	4.01
Home Equity		1,445.8		13.1	3.62			1,367.4		12.0	3.56			1,170.9		10.5	3.61
Automobile		474.1		5.9	4.97			461.7		5.8	5.04			405.9		5.2	5.18
Other ²		379.7		7.6	8.06			376.6		7.3	7.89			353.0		6.9	7.78
Total Loans and Leases		9,217.8		91.0	3.96			9,020.4		88.0	3.94			8,205.1		82.4	4.03
Other		41.0		0.2	2.03			40.1		0.2	2.30			38.1		0.1	1.61
Total Earning Assets ³		15,819.0		126.6	3.21			15,756.0		122.9	3.14			14,989.5		116.7	3.12
Cash and Due from Banks		120.8						132.2						120.4
Other Assets		556.1						546.4						529.7
Total Assets	$	16,495.9					$	16,434.6					$	15,639.6

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	2,862.7		0.5	0.07		$	2,866.4		0.3	0.04		$	2,738.1		0.3	0.04
Savings		5,376.9		1.6	0.12			5,406.2		1.3	0.09			5,184.8		1.1	0.09
Time		1,480.5		2.9	0.78			1,313.7		2.1	0.65			1,214.8		1.7	0.57
Total Interest-Bearing Deposits		9,720.1		5.0	0.21			9,586.3		3.7	0.16			9,137.7		3.1	0.14
Short-Term Borrowings		36.5		0.1	1.10			9.5		-	0.15			7.3		-	0.15
Securities Sold Under Agreements to Repurchase		505.3		5.1	3.98			512.2		5.2	4.05			586.8		6.1	4.14
Other Debt		267.9		1.1	1.66			267.9		1.1	1.66			226.8		1.0	1.80
Total Interest-Bearing Liabilities		10,529.8		11.3	0.43			10,375.9		10.0	0.39			9,958.6		10.2	0.41
Net Interest Income			$	115.3					$	112.9					$	106.5
Interest Rate Spread					2.78	%					2.75	%					2.71	%
Net Interest Margin					2.92	%					2.89	%					2.85	%
Noninterest-Bearing Demand Deposits		4,533.0						4,632.6						4,316.3
Other Liabilities		228.3						248.8						220.8
Shareholders' Equity		1,204.8						1,177.3						1,143.9
Total Liabilities and Shareholders' Equity	$	16,495.9					$	16,434.6					$	15,639.6

¹Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

² Comprised of other consumer revolving credit, installment, and consumer lease financing.

³ Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $3,054,000, $3,061,000 and $2,977,000 for the three months ended June 30, 2017, March 31, 2017, and June 30, 2016, respectively.


Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis									Table 7b
	Six Months Ended						Six Months Ended
	June 30, 2017						June 30, 2016
	Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	3.5	$	-	0.42	%	$	4.2	$	-	0.30	%
Funds Sold		448.3		1.6	0.70			587.3		1.4	0.46
Investment Securities
Available-for-Sale
Taxable		1,654.6		15.9	1.93			1,604.1		14.1	1.76
Non-Taxable		659.8		10.7	3.26			703.4		11.1	3.16
Held-to-Maturity
Taxable		3,592.9		36.6	2.04			3,659.5		37.5	2.05
Non-Taxable		241.4		4.7	3.88			245.1		4.8	3.91
Total Investment Securities		6,148.7		67.9	2.21			6,212.1		67.5	2.17
Loans Held for Sale		27.1		0.6	4.01			16.0		0.3	3.74
Loans and Leases ¹
Commercial and Industrial		1,257.4		21.5	3.44			1,151.7		20.6	3.59
Commercial Mortgage		1,914.1		35.9	3.78			1,687.9		32.1	3.82
Construction		249.5		5.7	4.62			190.4		4.3	4.53
Commercial Lease Financing		208.3		2.3	2.22			197.7		2.5	2.53
Residential Mortgage		3,237.4		62.0	3.83			2,962.0		59.6	4.03
Home Equity		1,406.8		25.0	3.59			1,137.2		20.6	3.65
Automobile		467.9		11.6	5.01			397.2		10.2	5.19
Other ²		378.2		15.0	7.98			348.5		13.4	7.71
Total Loans and Leases		9,119.6		179.0	3.95			8,072.6		163.3	4.06
Other		40.5		0.4	2.16			38.2		0.4	1.91
Total Earning Assets ³		15,787.7		249.5	3.17			14,930.4		232.9	3.13
Cash and Due from Banks		126.5						125.7
Other Assets		551.2						532.2
Total Assets	$	16,465.4					$	15,588.3

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	2,864.6		0.8	0.06		$	2,749.9		0.5	0.04
Savings		5,391.4		2.9	0.11			5,161.2		2.3	0.09
Time		1,397.5		5.0	0.72			1,211.6		3.2	0.53
Total Interest-Bearing Deposits		9,653.5		8.7	0.18			9,122.7		6.0	0.13
Short-Term Borrowings		23.1		0.1	0.91			7.5		-	0.15
Securities Sold Under Agreements to Repurchase		508.8		10.2	4.01			594.9		12.3	4.09
Other Debt		267.9		2.2	1.66			229.5		2.0	1.77
Total Interest-Bearing Liabilities		10,453.3		21.2	0.41			9,954.6		20.3	0.41
Net Interest Income			$	228.3					$	212.6
Interest Rate Spread					2.76	%					2.72	%
Net Interest Margin					2.90	%					2.86	%
Noninterest-Bearing Demand Deposits		4,582.6						4,271.6
Other Liabilities		238.3						225.4
Shareholders' Equity		1,191.2						1,136.7
Total Liabilities and Shareholders' Equity	$	16,465.4					$	15,588.3

¹Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
² Comprised of other consumer revolving credit, installment, and consumer lease financing.
³ Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $6,115,000 and $5,990,000 for the six months ended June 30, 2017 and June 30, 2016, respectively.


Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended June 30, 2017
	Compared to March 31, 2017
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(0.3	)	$	0.1		$	(0.2	)
Investment Securities
Available-for-Sale
Taxable		0.4			0.5			0.9
Held-to-Maturity
Taxable		-			0.2			0.2
Non-Taxable		(0.1	)		-			(0.1	)
Total Investment Securities		0.3			0.7			1.0
Loans Held for Sale		(0.1	)		-			(0.1	)
Loans and Leases
Commercial and Industrial		(0.1	)		0.5			0.4
Commercial Mortgage		0.7			0.2			0.9
Construction		(0.2	)		0.1			(0.1	)
Commercial Lease Financing		-			0.1			0.1
Residential Mortgage		0.7			(0.5	)		0.2
Home Equity		0.8			0.3			1.1
Automobile		0.2			(0.1	)		0.1
Other ²		0.1			0.2			0.3
Total Loans and Leases		2.2			0.8			3.0
Total Change in Interest Income		2.1			1.6			3.7

Change in Interest Expense:
Interest-Bearing Deposits
Demand		-			0.2			0.2
Savings		-			0.3			0.3
Time		0.3			0.5			0.8
Total Interest-Bearing Deposits		0.3			1.0			1.3
Short-Term Borrowings		-			0.1			0.1
Securities Sold Under Agreements to Repurchase		-			(0.1	)		(0.1	)
Total Change in Interest Expense		0.3			1.0			1.3

Change in Net Interest Income	$	1.8		$	0.6		$	2.4

¹ The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

² Comprised of other consumer revolving credit, installment, and consumer lease financing.


Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8b
	Three Months Ended June 30, 2017
	Compared to June 30, 2016
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(0.2	)	$	0.3		$	0.1
Investment Securities
Available-for-Sale
Taxable		0.4			1.1			1.5
Non-Taxable		(0.3	)		0.2			(0.1	)
Held-to-Maturity
Taxable		(0.2	)		-			(0.2	)
Non-Taxable		(0.1	)		-			(0.1	)
Total Investment Securities		(0.2	)		1.3			1.1
Loans and Leases
Commercial and Industrial		0.6			0.5			1.1
Commercial Mortgage		2.5			(0.5	)		2.0
Construction		0.4			0.1			0.5
Commercial Lease Financing		0.1			(0.1	)		-
Residential Mortgage		2.6			(1.6	)		1.0
Home Equity		2.5			0.1			2.6
Automobile		0.9			(0.2	)		0.7
Other ²		0.4			0.3			0.7
Total Loans and Leases		10.0			(1.4	)		8.6
Other		-			0.1			0.1
Total Change in Interest Income		9.6			0.3			9.9

Change in Interest Expense:
Interest-Bearing Deposits
Demand		-			0.2			0.2
Savings		-			0.5			0.5
Time		0.4			0.8			1.2
Total Interest-Bearing Deposits		0.4			1.5			1.9
Short-Term Borrowings		-			0.1			0.1
Securities Sold Under Agreements to Repurchase		(0.8	)		(0.2	)		(1.0	)
Other Debt		0.2			(0.1	)		0.1
Total Change in Interest Expense		(0.2	)		1.3			1.1

Change in Net Interest Income	$	9.8		$	(1.0	)	$	8.8

¹ The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

² Comprised of other consumer revolving credit, installment, and consumer lease financing.


Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8c
	Six Months Ended June 30, 2017
	Compared to June 30, 2016
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(0.4	)	$	0.6		$	0.2
Investment Securities
Available-for-Sale
Taxable		0.4			1.4			1.8
Non-Taxable		(0.7	)		0.3			(0.4	)
Held-to-Maturity
Taxable		(0.7	)		(0.2	)		(0.9	)
Non-Taxable		(0.1	)		-			(0.1	)
Total Investment Securities		(1.1	)		1.5			0.4
Loans Held for Sale		0.3			-			0.3
Loans and Leases
Commercial and Industrial		1.8			(0.9	)		0.9
Commercial Mortgage		4.2			(0.4	)		3.8
Construction		1.3			0.1			1.4
Commercial Lease Financing		0.1			(0.3	)		(0.2	)
Residential Mortgage		5.5			(3.1	)		2.4
Home Equity		4.7			(0.3	)		4.4
Automobile		1.7			(0.3	)		1.4
Other ²		1.1			0.5			1.6
Total Loans and Leases		20.4			(4.7	)		15.7
Other		-			-			-
Total Change in Interest Income		19.2			(2.6	)		16.6

Change in Interest Expense:
Interest-Bearing Deposits
Demand		-			0.3			0.3
Savings		0.1			0.5			0.6
Time		0.6			1.2			1.8
Total Interest-Bearing Deposits		0.7			2.0			2.7
Short-Term Borrowings		-			0.1			0.1
Securities Sold Under Agreements to Repurchase		(1.9	)		(0.2	)		(2.1	)
Other Debt		0.3			(0.1	)		0.2
Total Change in Interest Expense		(0.9	)		1.8			0.9

Change in Net Interest Income	$	20.1		$	(4.4	)	$	15.7

¹ The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

² Comprised of other consumer revolving credit, installment, and consumer lease financing.


Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits									Table 9
	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,
(dollars in thousands)	2017		2017		2016		2017		2016
Salaries	$	30,553	$	29,425	$	28,797	$	59,978	$	57,938
Incentive Compensation		5,125		5,774		5,917		10,899		11,882
Share-Based Compensation		2,879		2,303		2,746		5,182		5,056
Commission Expense		1,791		1,836		2,151		3,627		3,508
Retirement and Other Benefits		4,159		5,041		4,092		9,200		9,046
Payroll Taxes		2,427		3,944		2,288		6,371		5,865
Medical, Dental, and Life Insurance		3,136		3,279		3,872		6,415		6,764
Separation Expense		43		-		426		43		744
Total Salaries and Benefits	$	50,113	$	51,602	$	50,289	$	101,715	$	100,803


Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances									Table 10
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)	2017		2017		2016		2016		2016
Commercial
Commercial and Industrial	$	1,241,953	$	1,250,006	$	1,249,791	$	1,217,849	$	1,174,879
Commercial Mortgage		2,009,886		1,909,064		1,889,551		1,807,190		1,712,271
Construction		248,030		262,660		270,018		263,079		226,062
Lease Financing		205,043		208,765		208,332		201,436		192,630
Total Commercial		3,704,912		3,630,495		3,617,692		3,489,554		3,305,842
Consumer
Residential Mortgage		3,317,179		3,224,206		3,163,073		3,098,936		3,032,981
Home Equity		1,473,123		1,411,489		1,334,163		1,295,993		1,213,154
Automobile		484,092		468,078		454,333		437,659		417,017
Other ¹		408,307		379,541		380,524		371,955		362,475
Total Consumer		5,682,701		5,483,314		5,332,093		5,204,543		5,025,627
Total Loans and Leases	$	9,387,613	$	9,113,809	$	8,949,785	$	8,694,097	$	8,331,469


Deposits
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)	2017		2017		2016		2016		2016
Consumer	$	7,278,536	$	7,196,781	$	6,997,482	$	6,781,371	$	6,618,164
Commercial		5,903,639		6,051,721		6,110,189		5,751,184		5,697,490
Public and Other		1,602,474		1,228,031		1,212,569		1,275,810		1,328,153
Total Deposits	$	14,784,649	$	14,476,533	$	14,320,240	$	13,808,365	$	13,643,807

¹ Comprised of other revolving credit, installment, and lease financing.


Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More													Table 11
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)	2017			2017			2016			2016			2016
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial	$	175		$	228		$	151		$	201		$	269
Commercial Mortgage		1,460			973			997			1,023			1,194
Total Commercial		1,635			1,201			1,148			1,224			1,463
Consumer
Residential Mortgage		9,337			11,756			13,780			12,735			9,979
Home Equity		3,405			3,517			3,147			2,966			3,110
Total Consumer		12,742			15,273			16,927			15,701			13,089
Total Non-Accrual Loans and Leases		14,377			16,474			18,075			16,925			14,552
Foreclosed Real Estate		1,991			2,529			1,686			1,747			1,728
Total Non-Performing Assets	$	16,368		$	19,003		$	19,761		$	18,672		$	16,280

Accruing Loans and Leases Past Due 90 Days or More
Consumer
Residential Mortgage	$	2,269		$	2,313		$	3,127		$	2,583		$	5,640
Home Equity		2,343			1,133			1,457			1,210			1,128
Automobile		539			673			894			578			464
Other¹		1,859			1,738			1,592			1,273			1,518
Total Consumer		7,010			5,857			7,070			5,644			8,750
Total Accruing Loans and Leases Past Due 90 Days or More	$	7,010		$	5,857		$	7,070		$	5,644		$	8,750
Restructured Loans on Accrual Status and Not Past Due 90 Days or More	$	53,158		$	52,965		$	52,208		$	52,095		$	52,173
Total Loans and Leases	$	9,387,613		$	9,113,809		$	8,949,785		$	8,694,097		$	8,331,469

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases		0.15	%		0.18	%		0.20	%		0.19	%		0.17	%

Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate		0.17	%		0.21	%		0.22	%		0.21	%		0.20	%

Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate		0.04	%		0.03	%		0.03	%		0.04	%		0.04	%

Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate		0.26	%		0.32	%		0.35	%		0.34	%		0.29	%

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		0.25	%		0.27	%		0.30	%		0.28	%		0.30	%

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter	$	19,003		$	19,761		$	18,672		$	16,280		$	22,015
Additions		1,572			1,221			2,142			3,730			1,300
Reductions
Payments		(497	)		(1,017	)		(252	)		(501	)		(3,401	)
Return to Accrual Status		(1,370	)		(645	)		(653	)		(701	)		(3,560	)
Sales of Foreclosed Real Estate		(1,883	)		-			(61	)		-			-
Charge-offs/Write-downs		(457	)		(317	)		(87	)		(136	)		(74	)
Total Reductions		(4,207	)		(1,979	)		(1,053	)		(1,338	)		(7,035	)
Balance at End of Quarter	$	16,368		$	19,003		$	19,761		$	18,672		$	16,280

¹Comprised of other revolving credit, installment, and lease financing.


Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses													Table 12
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands)	2017			2017			2016			2017			2016
Balance at Beginning of Period	$	111,636		$	110,845		$	111,249		$	110,845			108,952
Loans and Leases Charged-Off
Commercial
Commercial and Industrial		(124	)		(174	)		(204	)		(298	)		(461	)
Consumer
Residential Mortgage		(506	)		(183	)		(79	)		(689	)		(284	)
Home Equity		(282	)		(363	)		17			(645	)		(626	)
Automobile		(1,512	)		(2,290	)		(1,372	)		(3,802	)		(2,932	)
Other ¹		(3,063	)		(2,694	)		(2,117	)		(5,757	)		(4,339	)
Total Loans and Leases Charged-Off		(5,487	)		(5,704	)		(3,755	)		(11,191	)		(8,642	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial		265			336		$	403			601			7,270
Commercial Mortgage		-			-			14			-			28
Construction		-			-			-			-			23
Lease Financing		1			-			1			1			2
Consumer
Residential Mortgage		264			104			279			368			480
Home Equity		838			508			322			1,346			835
Automobile		607			620			541			1,227			1,133
Other ¹		551			527			450			1,078			923
Total Recoveries on Loans and Leases Previously Charged-Off		2,526			2,095			2,010			4,621			10,694
Net Loans and Leases Recovered (Charged-Off)		(2,961	)		(3,609	)		(1,745	)		(6,570	)		2,052
Provision for Credit Losses		4,250			4,400			1,000			8,650			(1,000	)
Provision for Unfunded Commitments		250			-			-			250			500
Balance at End of Period ²	$	113,175		$	111,636		$	110,504		$	113,175		$	110,504

Components
Allowance for Loan and Lease Losses	$	106,353		$	105,064			103,932		$	106,353			103,932
Reserve for Unfunded Commitments		6,822			6,572			6,572			6,822			6,572
Total Reserve for Credit Losses	$	113,175		$	111,636		$	110,504		$	113,175		$	110,504

Average Loans and Leases Outstanding	$	9,217,779		$	9,020,351		$	8,205,104		$	9,119,610		$	8,072,600


Ratio of Net Loans and Leases Charged-Off (Recovered) to Average Loans and Leases Outstanding (annualized)		0.13	%		0.16	%		0.09	%		0.15	%		-0.05	%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding		1.13	%		1.15	%		1.25	%		1.13	%		1.25	%

¹ Comprised of other revolving credit, installment, and lease financing.

² Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.


Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information													Table 13a
	Retail			Commercial			Investment			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Services			and Other			Total
Three Months Ended June 30, 2017
Net Interest Income	$	66,348		$	41,737		$	6,714		$	(2,520	)	$	112,279
Provision for Credit Losses		3,099			(132	)		(6	)		1,289			4,250
Net Interest Income After Provision for Credit Losses		63,249			41,869			6,720			(3,809	)		108,029
Noninterest Income		21,920			5,876			15,247			2,193			45,236
Noninterest Expense		(52,018	)		(18,407	)		(15,295	)		(2,469	)		(88,189	)
Income Before Provision for Income Taxes		33,151			29,338			6,672			(4,085	)		65,076
Provision for Income Taxes		(11,741	)		(10,325	)		(2,469	)		4,121			(20,414	)
Net Income	$	21,410		$	19,013		$	4,203		$	36		$	44,662
Total Assets as of June 30, 2017	$	5,626,767		$	3,658,867		$	307,529		$	7,388,129		$	16,981,292


Three Months Ended June 30, 2016 ¹
Net Interest Income	$	60,041		$	38,151		$	6,037		$	(679	)	$	103,550
Provision for Credit Losses		2,006			(258	)		(5	)		(743	)		1,000
Net Interest Income After Provision for Credit Losses		58,035			38,409			6,042			64			102,550
Noninterest Income		21,771			6,438			15,946			2,364			46,519
Noninterest Expense		(50,758	)		(17,762	)		(14,780	)		(2,771	)		(86,071	)
Income Before Provision for Income Taxes		29,048			27,085			7,208			(343	)		62,998
Provision for Income Taxes		(10,402	)		(9,608	)		(2,667	)		3,924			(18,753	)
Net Income	$	18,646		$	17,477		$	4,541		$	3,581		$	44,245
Total Assets as of June 30, 2016 ¹	$	5,076,204		$	3,239,572		$	282,143		$	7,262,982		$	15,860,901

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


Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information													Table 13b
	Retail			Commercial			Investment			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Services			and Other			Total
Six Months Ended June 30, 2017
Net Interest Income	$	131,505		$	83,668		$	13,364		$	(6,386	)	$	222,151
Provision for Credit Losses		6,900			(320	)		(11	)		2,081			8,650
Net Interest Income After Provision for Credit Losses		124,605			83,988			13,375			(8,467	)		213,501
Noninterest Income		42,845			11,314			29,796			17,197			101,152
Noninterest Expense		(104,278	)		(36,762	)		(30,766	)		(4,951	)		(176,757	)
Income Before Provision for Income Taxes		63,172			58,540			12,405			3,779			137,896
Provision for Income Taxes		(22,415	)		(20,581	)		(4,590	)		5,528			(42,058	)
Net Income	$	40,757		$	37,959		$	7,815		$	9,307		$	95,838
Total Assets as of June 30, 2017	$	5,626,767		$	3,658,867		$	307,529		$	7,388,129		$	16,981,292


Six Months Ended June 30, 2016 ¹
Net Interest Income	$	118,051		$	76,499		$	12,489		$	(465	)	$	206,574
Provision for Credit Losses		4,842			(6,883	)		(11	)		1,052			(1,000	)
Net Interest Income After Provision for Credit Losses		113,209			83,382			12,500			(1,517	)		207,574
Noninterest Income		42,577			14,038			29,971			16,140			102,726
Noninterest Expense		(103,498	)		(35,029	)		(30,207	)		(4,723	)		(173,457	)
Income Before Provision for Income Taxes		52,288			62,391			12,264			9,900			136,843
Provision for Income Taxes		(18,629	)		(22,264	)		(4,537	)		3,042			(42,388	)
Net Income	$	33,659		$	40,127		$	7,727		$	12,942		$	94,455
Total Assets as of June 30, 2016 ¹	$	5,076,204		$	3,239,572		$	282,143		$	7,262,982		$	15,860,901

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


Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data															Table 14
	Three Months Ended
	June 30,				March 31,			December 31,				September 30,				June 30,
(dollars in thousands, except per share amounts)	2017				2017			2016				2016				2016
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	90,909			$	87,937		$	86,532			$	83,489			$	82,323
Income on Investment Securities
Available-for-Sale		11,835				11,084			10,244				10,313				10,521
Held-to-Maturity		19,918				19,706			19,213				19,315				20,168
Deposits		2				5			2				1				2
Funds Sold		696				890			795				695				618
Other		208				230			281				166				153
Total Interest Income		123,568				119,852			117,067				113,979				113,785
Interest Expense
Deposits		4,998				3,691			3,448				3,232				3,081
Securities Sold Under Agreements to Repurchase		5,079				5,185			5,406				5,713				6,134
Funds Purchased		39				3			3				3				3
Short-Term Borrowings		64				-			-				-				-
Other Debt		1,109				1,101			1,117				1,119				1,017
Total Interest Expense		11,289				9,980			9,974				10,067				10,235
Net Interest Income		112,279				109,872			107,093				103,912				103,550
Provision for Credit Losses		4,250				4,400			3,250				2,500				1,000
Net Interest Income After Provision for Credit Losses		108,029				105,472			103,843				101,412				102,550
Noninterest Income
Trust and Asset Management		11,796				11,479			11,232				11,008				12,707
Mortgage Banking		3,819				3,300			6,256				6,362				4,088
Service Charges on Deposit Accounts		8,009				8,325			8,537				8,524				8,150
Fees, Exchange, and Other Service Charges		13,965				13,332			13,731				14,023				13,978
Investment Securities Gains (Losses), Net		(520	)			12,133			(337	)			(328	)			(312	)
Annuity and Insurance		2,161				1,995			1,457				1,653				2,006
Bank-Owned Life Insurance		1,550				1,497			1,551				1,911				1,551
Other		4,456				3,855			4,076				4,961				4,351
Total Noninterest Income		45,236				55,916			46,503				48,114				46,519
Noninterest Expense
Salaries and Benefits		50,113				51,602			50,622				49,725				50,289
Net Occupancy		8,131				8,168			7,581				8,510				7,158
Net Equipment		5,706				5,501			5,191				4,913				5,065
Data Processing		3,881				3,410			3,665				3,620				3,972
Professional Fees		2,592				2,779			2,990				2,396				2,047
FDIC Insurance		2,097				2,209			2,015				2,104				2,144
Other		15,669				14,899			17,525				16,264				15,396
Total Noninterest Expense		88,189				88,568			89,589				87,532				86,071
Income Before Provision for Income Taxes		65,076				72,820			60,757				61,994				62,998
Provision for Income Taxes		20,414				21,644			17,244				18,501				18,753
Net Income	$	44,662			$	51,176		$	43,513			$	43,493			$	44,245

Basic Earnings Per Share	$	1.05			$	1.21		$	1.03			$	1.02			$	1.04
Diluted Earnings Per Share	$	1.05			$	1.20		$	1.02			$	1.02			$	1.03

Balance Sheet Totals
Loans and Leases	$	9,387,613			$	9,113,809		$	8,949,785			$	8,694,097			$	8,331,469
Total Assets		16,981,292				16,664,215			16,492,367				16,014,643				15,860,901
Total Deposits		14,784,649				14,476,533			14,320,240				13,808,365				13,643,807
Total Shareholders' Equity		1,213,757				1,193,137			1,161,537				1,163,859				1,157,219

Performance Ratios
Return on Average Assets		1.09		%		1.26	%		1.07		%		1.09		%		1.14		%
Return on Average Shareholders' Equity		14.87				17.63			14.90				14.89				15.56
Efficiency Ratio ¹		55.99				53.42			58.33				57.58				57.35
Net Interest Margin ²		2.92				2.89			2.83				2.80				2.85

¹ Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).

² Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.


Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends													Table 15
	Five Months Ended				Year Ended
($ in millions; jobs in thousands)	May 31, 2017				December 31, 2016					December 31, 2015
Hawaii Economic Trends
State General Fund Revenues¹	$	2,673.5	2.8	%	$	6,215.4		3.6	%	$	5,998.6		8.4		%
General Excise and Use Tax Revenue¹	$	1,384.2	2.4	%	$	3,205.7		2.0	%	$	3,141.5		5.4		%
Jobs ²		673.1				671.7					658.8

								June 30,		December 31,
(spot rates)								2017		2016			2015
Unemployment³
Statewide, seasonally adjusted								2.7	%		2.9	%	3.2		%

Oahu								3.1			2.4		2.7
Island of Hawaii								4.0			3.1		3.7
Maui								3.4			2.7		3.1
Kauai								3.2			2.8		3.5

					June 30,			December 31,
(percentage change, except months of inventory)					2017			2016		2015			2014
Housing Trends (Single Family Oahu) ⁴
Median Home Price						3.2	%	5.0	%		3.7	%	3.8		%
Home Sales Volume (units)						4.4	%	6.5	%		5.2	%	(0.8	)	%
Months of Inventory						2.7		2.5			2.6		2.6

					Monthly Visitor Arrivals,					Percentage Change
(in thousands)					Not Seasonally Adjusted					from Previous Year
Tourism ⁵

May 31, 2017								751.2					4.5
April 30, 2017								753.0					7.5
March 31, 2017								802.8					2.1
February 28, 2017								700.4					1.7
January 31, 2017								756.3					4.9
December 31, 2016								828.5					3.6
November 30, 2016								696.9					4.7
October 31, 2016								717.5					4.3
September 30, 2016								666.6					3.0
August 31, 2016								780.7					3.1
July 31, 2016								835.4					2.1
June 30, 2016								800.3					4.2
May 31, 2016								718.9					1.3
April 30, 2016								700.6					3.4
March 31, 2016								786.3					0.8
February 29, 2016								688.8					4.1
January 31, 2016								721.0					6.2
December 31, 2015								799.5					4.4
November 30, 2015								665.9					4.4
October 31, 2015								687.7					4.0
September 30, 2015								647.2					3.9
August 31, 2015								757.5					3.1
July 31, 2015								818.5					5.9
June 30, 2015								767.9					6.0
May 31, 2015								709.7					9.3
April 30, 2015								677.8					2.3
March 31, 2015								780.1					7.0
February 28, 2015								661.7					2.3
January 31, 2015								678.9					(0.6	)

¹Source: Hawaii Department of Business, Economic Development & Tourism

²Source: U. S. Bureau of Labor

³Source: Hawaii Department of Labor and Industrial Relations, County jobs data not seasonally adjusted.

⁴Source: Honolulu Board of REALTORS

⁵Source: Hawaii Tourism Authority

Note: Certain prior period seasonally adjusted information has been revised.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170724005269/en/

Source: Bank of Hawaii Corporation

Bank of Hawaii Corporation
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or
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Cindy.Wyrick@boh.com

Financial Release

Bank of Hawaii Corporation Second Quarter 2017 Financial Results