Bank of Hawaii Corporation Second Quarter 2018 Financial Results

July 23, 2018

Supporting Materials:

Diluted Earnings Per Share $1.30
Net Income $54.7 Million
Board of Directors Approves Dividend of $0.60 Per Share

HONOLULU--(BUSINESS WIRE)--Jul. 23, 2018-- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $1.30 for the second quarter of 2018, up from diluted earnings per share of $1.28 in the previous quarter, and up from diluted earnings per share of $1.05 in the same quarter last year. Net income for the second quarter of 2018 was $54.7 million compared with net income of $54.0 million in the first quarter of 2018 and net income of $44.7 million in the second quarter of 2017.

Loan and lease balances increased to $10.1 billion at June 30, 2018, up 1.4 percent from March 31, 2018, and up 7.1 percent compared with June 30, 2017. Total deposits were $14.9 billion at the end of the second quarter, down slightly from March 31, 2018 due to the planned decline in public time deposits. Total deposits were up 1.1 percent compared with June 30, 2017.

“Bank of Hawaii Corporation continued to perform well during the second quarter of 2018,” said Peter Ho, Chairman, President and CEO. “Loans continued to grow, our margin expanded, asset quality remains strong, and we maintained our disciplined approach to risk and capital management.”

The return on average assets for the second quarter of 2018 was 1.30 percent, up from 1.29 percent in the previous quarter and 1.09 percent in the same quarter last year. The return on average equity for the second quarter of 2018 was 17.68 percent down slightly from 17.74 percent for the first quarter of 2018 and up from 14.87 percent for the second quarter of 2017. The efficiency ratio for the second quarter of 2018 was 56.12 percent compared with 57.91 percent in the previous quarter and 55.99 percent in the same quarter last year.

For the six-month period ended June 30, 2018, net income was $108.8 million, an increase of $13.0 million from net income of $95.8 million during the same period last year. Diluted earnings per share were $2.57 for the first half of 2018, an increase from diluted earnings per share of $2.24 for the first half of 2017. The return on average assets for the six-month period ended June 30, 2018 was 1.29 percent compared with 1.17 percent for the same six months in 2017. The year-to-date return on average equity was 17.71 percent for the first half of 2018 compared with 16.22 percent for the six-month period ended June 30, 2017. The efficiency ratio for the first half of 2018 was 57.01 percent compared with 54.67 percent in the same period last year.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the second quarter of 2018 was $121.8 million, an increase of $1.5 million compared with net interest income of $120.3 million in the first quarter of 2018 and an increase of $6.5 million compared with net interest income of $115.3 million in the second quarter of 2017. Net interest income for the first half of 2018 was $242.1 million, an increase of $13.8 million compared with net interest income of $228.3 million for the first half of 2017. Analyses of the changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin was 3.04 percent for the second quarter of 2018, up 4 basis points from the net interest margin of 3.00 percent in the previous quarter and a 12 basis point increase from the net interest margin of 2.92 percent in the second quarter of 2017. The net interest margin for the first six months of 2018 was 3.02 percent compared with 2.90 percent for the same six-month period last year.

Results for the second quarter of 2018 included a provision for credit losses of $3.5 million compared with a provision for credit losses of $4.1 million in the previous quarter and a provision for credit losses of $4.3 million in the same quarter last year. The provision for credit losses during the first half of 2018 was $7.6 million compared with $8.7 million during the same period in 2017.

Noninterest income was $41.3 million in the second quarter of 2018, a decrease of $2.7 million compared with noninterest income of $44.0 million in the first quarter of 2018 and a decrease of $3.9 million compared with noninterest income of $45.2 million in the second quarter of 2017. Noninterest income during the second quarter of 2018 included a negative adjustment of $1.0 million related to a change in the Visa Class B conversion ratio. Noninterest income in the first quarter of 2018 included $2.8 million resulting from a low-income housing investment sale and distribution. There were no significant items in noninterest income during the second quarter of 2017. The decrease compared with the second quarter last year was primarily due to lower mortgage banking income and a decline in service charges. Noninterest income for the first half of 2018 was $85.3 million, a decrease of $15.9 million compared with noninterest income of $101.2 million for the first half of 2017. Noninterest income in the first half of 2017 included a gain of $12.5 million resulting from the sale of 90,000 Visa Class B shares.

Noninterest expense was $90.8 million in the second quarter of 2018, a decrease of $3.6 million compared with noninterest expense of $94.4 million in the first quarter of 2018 and an increase of $2.6 million compared with noninterest expense of $88.2 million in the second quarter last year. There were no significant items in noninterest expense during the second quarter of 2018 or the second quarter of 2017. Noninterest expense in the first quarter of 2018 included seasonal payroll expenses of approximately $2.5 million, a legal reserve of $2.0 million, and severance expenses of $1.0 million. Noninterest expense for the first half of 2018 was $185.2 million, an increase of $8.4 million compared with $176.8 million for the first half of 2017. Adjusted for the legal reserve and severance, the increase is largely related to salaries and benefits, including minimum wage increases. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the second quarter of 2018 was 18.94 percent compared with 16.19 percent in the previous quarter and 31.37 percent in the same quarter last year. The lower effective tax rate in the first and second quarters of 2018 was primarily due to the reduction in the federal corporate tax rate from 35 percent to 21 percent as a result of the Tax Cuts and Jobs Act. The tax rate during the first quarter of 2018 was also favorably impacted by a $2.0 million adjustment to the Company’s low-income housing investments. The effective tax rate for the first half of 2018 was 17.60 percent compared with 30.50 percent during the same period last year.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services and Private Banking, 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 2018. Total non-performing assets were $15.2 million at June 30, 2018, down from non-performing assets of $15.7 million at March 31, 2018 and down from non-performing assets of $16.4 million at June 30, 2017. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.15 percent at the end of the second quarter of 2018, down from 0.16 percent at the end of the first quarter of 2018 and down from 0.17 percent at the end of the second quarter last year.

Accruing loans and leases past due 90 days or more were $13.3 million at June 30, 2018, up from $8.2 million at March 31, 2018 and $7.0 million at June 30, 2017. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $50.2 million at June 30, 2018, down from $56.7 million at March 31, 2018 and down from $53.2 million at June 30, 2017. 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 2018 were $3.3 million or 0.13 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $5.7 million during the quarter were partially offset by recoveries of $2.4 million. Net charge-offs during the first quarter of 2018 were $3.5 million or 0.15 percent annualized of total average loans and leases outstanding and comprised of $6.0 million in charge-offs and recoveries of $2.5 million. Net charge-offs during the second quarter of 2017 were $3.0 million or 0.13 percent annualized of total average loans and leases outstanding and comprised of $5.5 million in charge-offs and recoveries of $2.5 million. Net charge-offs during the first half of 2018 were $6.8 million or 0.14 percent annualized of total average loans and leases outstanding compared with net charge-offs of $6.6 million or 0.15 percent annualized of total average loans and leases outstanding for the first half of 2017.

The allowance for loan and lease losses increased to $108.2 million at June 30, 2018 compared with $107.9 million at March 31, 2018 and $106.4 million at June 30, 2017. The ratio of the allowance for loan and lease losses to total loans and leases was 1.08 percent at June 30, 2018, a decrease of 1 basis point from the previous quarter and 5 basis points from the second quarter last year. The allowance for loan and lease losses at June 30, 2018 is commensurate with the Company’s strong asset quality and the Hawaii economy. The reserve for unfunded commitments of $6.8 million at June 30, 2018 was unchanged from March 31, 2018 and June 30, 2017. 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 $17.12 billion at June 30, 2018, down slightly from total assets of $17.14 billion at March 31, 2018 and up from total assets of $16.98 billion at June 30, 2017. Average total assets were $16.92 billion during the second quarter of 2018 compared with $16.96 billion during the previous quarter and $16.50 billion during the same quarter last year.

The investment securities portfolio was $5.69 billion at June 30, 2018, down from $5.97 billion at March 31, 2018 and $6.10 billion at June 30, 2017. The portfolio remains largely comprised of securities issued by U.S. government agencies and included $3.60 billion in securities held to maturity and $2.09 billion in securities available for sale at June 30, 2018.

Total loans and leases were $10.05 billion at June 30, 2018, up from total loans and leases of $9.92 billion at March 31, 2018, and up from total loans and leases of $9.39 billion at June 30, 2017. Average total loans and leases increased to $9.96 billion during the second quarter of 2018 from $9.80 billion during the previous quarter and $9.22 billion during the same quarter last year.

The commercial loan portfolio was $3.82 billion at June 30, 2018, up from $3.79 billion at March 31, 2018, and up from $3.70 billion at June 30, 2017. The consumer loan portfolio increased to $6.24 billion at June 30, 2018 compared with $6.12 billion at March 31, 2018 and $5.68 billion at June 30, 2017. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $14.94 billion at June 30, 2018, down from total deposits of $14.96 billion at March 31, 2018 and up from total deposits of $14.78 billion at June 30, 2017. Average total deposits were $14.71 billion during the second quarter of 2018, down slightly from $14.72 billion during the previous quarter and up from total deposits of $14.25 billion during the same quarter last year.

Consumer deposits of $7.67 billion at June 30, 2018 were up slightly from March 31, 2018 and up from $7.28 billion at June 30, 2017. Commercial deposits of $5.92 billion at June 30, 2018 also reflected a small increase from commercial deposits of $5.90 billion at March 31, 2018 and June 30, 2017. Other deposits, including public funds, were $1.35 billion at June 30, 2018, down from $1.39 billion at March 31, 2018 and $1.60 billion at June 30, 2017 largely due to the decline in public time deposits. Deposit balances are summarized in Tables 7a, 7b, and 10.

During the second quarter of 2018, the Company repurchased 292.0 thousand shares of common stock at a total cost of $24.8 million under its share repurchase program. The average cost was $84.93 per share repurchased. From the beginning of the share repurchase program initiated during July of 2001 through June 30, 2018, the Company has repurchased 54.6 million shares and returned over $2.1 billion to shareholders at an average cost of $38.68 per share. Remaining buyback authority under the share repurchase program was $81.3 million at June 30, 2018. From July 2 through July 20, 2018, the Company repurchased an additional 68.0 thousand shares of common stock at an average cost of $84.55 per share.

Total shareholders’ equity increased to $1.25 billion at June 30, 2018 compared with $1.24 billion at March 31, 2018 and $1.21 billion at June 30, 2017. The Tier 1 Capital Ratio at June 30, 2018 was 13.27 percent compared with 13.37 percent at March 31, 2018 and 13.34 percent at June 30, 2017. The Tier 1 leverage ratio at June 30, 2018 was 7.53 percent compared with 7.46 percent at March 31, 2018 and 7.37 percent at June 30, 2017.

The Company’s Board of Directors declared a quarterly cash dividend of $0.60 per share on the Company’s outstanding shares. The dividend will be payable on September 17, 2018 to shareholders of record at the close of business on August 31, 2018.

Hawaii Economy

Economic conditions in Hawaii continue to remain positive due to growing tourism, healthy construction activity, record low unemployment, and a strong real estate market. The statewide seasonally-adjusted unemployment rate in Hawaii continues to remain among the lowest in the United States at 2.1 percent in June 2018 compared to 4.0 percent nationally. For the first five months of 2018, total visitor spending increased 10.9 percent and visitor arrivals increased 8.4 percent compared to the same period in 2017. For the first five months of 2018, 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 2017. For the first six months of 2018, the volume of single-family home sales on Oahu decreased 1.6 percent while the median sales price increased 3.9 percent compared with the same period in 2017. The volume of condominium sales during the first half of 2018 on Oahu increased 1.3 percent and the median sales price was 6.5 percent higher compared with 2017. As of June 30, 2018, months of inventory of single-family homes and condominiums on Oahu remained low at 2.7 months and 3.0 months, respectively. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its second quarter 2018 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 Canada and 1 (703) 318-2209 for other 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 23, 2018. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the pass code 2584747 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, 2017, 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)	2018			2018			2017			2018			2017
For the Period:
Operating Results
Net Interest Income	$	120,496		$	118,956		$	112,279		$	239,452		$	222,151
Provision for Credit Losses		3,500			4,125			4,250			7,625			8,650
Total Noninterest Income		41,298			44,035			45,236			85,333			101,152
Total Noninterest Expense		90,791			94,384			88,189			185,175			176,757
Net Income		54,718			54,040			44,662			108,758			95,838
Basic Earnings Per Share		1.31			1.29			1.05			2.59			2.26
Diluted Earnings Per Share		1.30			1.28			1.05			2.57			2.24
Dividends Declared Per Share		0.60			0.52			0.50			1.12			1.00

Performance Ratios
Return on Average Assets		1.30	%		1.29	%		1.09	%		1.29	%		1.17	%
Return on Average Shareholders' Equity		17.68			17.74			14.87			17.71			16.22
Efficiency Ratio ¹		56.12			57.91			55.99			57.01			54.67
Net Interest Margin ²		3.04			3.00			2.92			3.02			2.90
Dividend Payout Ratio ³		45.80			40.31			47.62			43.24			44.25
Average Shareholders' Equity to Average Assets		7.34			7.29			7.30			7.31			7.23

Average Balances
Average Loans and Leases	$	9,962,860		$	9,803,753		$	9,217,779		$	9,883,746		$	9,119,610
Average Assets		16,921,820			16,957,430			16,495,925			16,939,527			16,465,435
Average Deposits		14,709,299			14,720,266			14,253,149			14,714,752			14,236,112
Average Shareholders' Equity		1,241,672			1,235,550			1,204,837			1,238,628			1,191,157

Per Share of Common Stock
Book Value	$	29.65		$	29.33		$	28.45		$	29.65		$	28.45
Tangible Book Value		28.90			28.59			27.72			28.90			27.72
Market Value
Closing		83.42			83.10			82.97			83.42			82.97
High		88.92			89.09			84.99			89.09			90.80
Low		80.20			78.40			75.92			78.40			75.92

				June 30,			March 31,			December 31,			June 30,
					2018			2018			2017			2017
As of Period End:
Balance Sheet Totals
Loans and Leases				$	10,053,323		$	9,916,628		$	9,796,947		$	9,387,613
Total Assets					17,124,162			17,136,030			17,089,052			16,981,292
Total Deposits					14,943,358			14,957,133			14,883,968			14,784,649
Other Debt					235,681			235,699			260,716			267,904
Total Shareholders' Equity					1,247,717			1,241,193			1,231,868			1,213,757

Asset Quality
Non-Performing Assets				$	15,157		$	15,736		$	16,120		$	16,368
Allowance for Loan and Lease Losses					108,188			107,938			107,346			106,353
Allowance to Loans and Leases Outstanding					1.08	%		1.09	%		1.10	%		1.13	%

Capital Ratios
Common Equity Tier 1 Capital Ratio					13.27	%		13.37	%		13.24	%		13.34	%
Tier 1 Capital Ratio					13.27			13.37			13.24			13.34
Total Capital Ratio					14.47			14.58			14.46			14.58
Tier 1 Leverage Ratio					7.53			7.46			7.26			7.37
Total Shareholders' Equity to Total Assets					7.29			7.24			7.21			7.15
Tangible Common Equity to Tangible Assets ⁴					7.12			7.07			7.04			6.97
Tangible Common Equity to Risk-Weighted Assets⁴					12.68			12.80			12.84			13.01

Non-Financial Data
Full-Time Equivalent Employees					2,173			2,138			2,132			2,142
Branches					69			69			69			69
ATMs					385			377			387			388


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.
⁴		Tangible 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."
Note: Total Capital Ratio as of March 31, 2018 was revised from 14.59%.


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)		2018		2018		2017		2017

Total Shareholders' Equity	$	1,247,717	$	1,241,193	$	1,231,868	$	1,213,757
Less: Goodwill		31,517		31,517		31,517		31,517
Tangible Common Equity	$	1,216,200	$	1,209,676	$	1,200,351	$	1,182,240

Total Assets	$	17,124,162	$	17,136,030	$	17,089,052	$	16,981,292
Less: Goodwill		31,517		31,517		31,517		31,517
Tangible Assets	$	17,092,645	$	17,104,513	$	17,057,535	$	16,949,775


Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements	$	9,593,242	$	9,452,847	$	9,348,296	$	9,087,057

Total Shareholders' Equity to Total Assets		7.29%		7.24%		7.21%		7.15%
Tangible Common Equity to Tangible Assets (Non-GAAP)		7.12%		7.07%		7.04%		6.97%

Tier 1 Capital Ratio		13.27%		13.37%		13.24%		13.34%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)		12.68%		12.80%		12.84%		13.01%

Note: Risk-Weighted Assets as of March 31, 2018 was revised from $9,451,647.


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)	2018			2018			2017			2018			2017
Interest Income
Interest and Fees on Loans and Leases	$	101,311		$	97,634		$	90,909		$	198,945		$	178,846
Income on Investment Securities
Available-for-Sale		12,380			12,141			11,835			24,521			22,919
Held-to-Maturity		20,711			21,296			19,918			42,007			39,624
Deposits		(4	)		18			2			14			7
Funds Sold		846			757			696			1,603			1,586
Other		341			300			208			641			438
Total Interest Income		135,585			132,146			123,568			267,731			243,420
Interest Expense
Deposits		9,459			7,581			4,998			17,040			8,689
Securities Sold Under Agreements to Repurchase		4,617			4,564			5,079			9,181			10,264
Funds Purchased		83			53			39			136			42
Short-Term Borrowings		13			16			64			29			64
Other Debt		917			976			1,109			1,893			2,210
Total Interest Expense		15,089			13,190			11,289			28,279			21,269
Net Interest Income		120,496			118,956			112,279			239,452			222,151
Provision for Credit Losses		3,500			4,125			4,250			7,625			8,650
Net Interest Income After Provision for Credit Losses		116,996			114,831			108,029			231,827			213,501
Noninterest Income
Trust and Asset Management		11,356			11,181			11,796			22,537			23,275
Mortgage Banking		2,179			2,145			3,819			4,324			7,119
Service Charges on Deposit Accounts		6,865			7,129			8,009			13,994			16,334
Fees, Exchange, and Other Service Charges		14,400			14,333			13,965			28,733			27,297
Investment Securities Gains (Losses), Net		(1,702	)		(666	)		(520	)		(2,368	)		11,613
Annuity and Insurance		1,847			1,206			2,161			3,053			4,156
Bank-Owned Life Insurance		1,796			1,842			1,550			3,638			3,047
Other		4,557			6,865			4,456			11,422			8,311
Total Noninterest Income		41,298			44,035			45,236			85,333			101,152
Noninterest Expense
Salaries and Benefits		52,148			54,422			49,676			106,570			100,841
Net Occupancy		8,588			8,534			8,131			17,122			16,299
Net Equipment		5,845			5,527			5,706			11,372			11,207
Data Processing		4,563			3,891			3,881			8,454			7,291
Professional Fees		2,546			2,773			2,592			5,319			5,371
FDIC Insurance		2,182			2,157			2,097			4,339			4,306
Other		14,919			17,080			16,106			31,999			31,442
Total Noninterest Expense		90,791			94,384			88,189			185,175			176,757
Income Before Provision for Income Taxes		67,503			64,482			65,076			131,985			137,896
Provision for Income Taxes		12,785			10,442			20,414			23,227			42,058
Net Income	$	54,718		$	54,040		$	44,662		$	108,758		$	95,838
Basic Earnings Per Share	$	1.31		$	1.29		$	1.05		$	2.59		$	2.26
Diluted Earnings Per Share	$	1.30		$	1.28		$	1.05		$	2.57		$	2.24
Dividends Declared Per Share	$	0.60		$	0.52		$	0.50		$	1.12		$	1.00
Basic Weighted Average Shares		41,884,221			42,038,573			42,353,976			41,960,743			42,379,730
Diluted Weighted Average Shares		42,152,200			42,358,425			42,658,885			42,252,900			42,704,010

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


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)	2018			2018			2017		2018			2017
Net Income	$	54,718		$	54,040		$	44,662	$	108,758		$	95,838
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities		(2,974	)		(9,121	)		3,106		(12,095	)		8,000
Defined Benefit Plans		216			216			147		432			293
Other Comprehensive Income (Loss)		(2,758	)		(8,905	)		3,253		(11,663	)		8,293
Comprehensive Income	$	51,960		$	45,135		$	47,915	$	97,095		$	104,131


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands)		2018			2018			2017			2017
Assets
Interest-Bearing Deposits in Other Banks	$	3,524		$	2,589		$	3,421		$	3,913
Funds Sold		361,933			387,766			181,413			742,221
Investment Securities
Available-for-Sale		2,092,870			2,184,187			2,232,979			2,316,728
Held-to-Maturity (Fair Value of $3,500,497; $3,711,149; $3,894,121; and $3,785,641)		3,595,891			3,789,092			3,928,170			3,782,702
Loans Held for Sale		16,025			23,548			19,231			20,354
Loans and Leases		10,053,323			9,916,628			9,796,947			9,387,613
Allowance for Loan and Lease Losses		(108,188	)		(107,938	)		(107,346	)		(106,353	)
Net Loans and Leases		9,945,135			9,808,690			9,689,601			9,281,260
Total Earning Assets		16,015,378			16,195,872			16,054,815			16,147,178
Cash and Due from Banks		312,303			174,871			263,017			128,093
Premises and Equipment, Net		142,791			137,201			130,926			119,569
Accrued Interest Receivable		50,594			52,941			50,485			46,595
Foreclosed Real Estate		2,926			2,768			1,040			1,991
Mortgage Servicing Rights		24,583			24,493			24,622			24,471
Goodwill		31,517			31,517			31,517			31,517
Bank-Owned Life Insurance		281,018			280,537			280,034			277,235
Other Assets		263,052			235,830			252,596			204,643
Total Assets	$	17,124,162		$	17,136,030		$	17,089,052		$	16,981,292

Liabilities
Deposits
Noninterest-Bearing Demand	$	4,729,203		$	4,759,777		$	4,724,300		$	4,706,962
Interest-Bearing Demand		3,111,069			3,028,373			3,082,563			3,029,549
Savings		5,389,763			5,397,291			5,389,013			5,364,191
Time		1,713,323			1,771,692			1,688,092			1,683,947
Total Deposits		14,943,358			14,957,133			14,883,968			14,784,649
Short-Term Borrowings		330			-			-			-
Securities Sold Under Agreements to Repurchase		504,193			505,293			505,293			505,292
Other Debt		235,681			235,699			260,716			267,904
Retirement Benefits Payable		36,730			37,046			37,312			48,346
Accrued Interest Payable		7,395			8,229			6,946			5,105
Taxes Payable and Deferred Taxes		15,136			29,557			24,009			31,444
Other Liabilities		133,622			121,880			138,940			124,795
Total Liabilities		15,876,445			15,894,837			15,857,184			15,767,535
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2018 - 58,070,285 / 42,084,066; March 31, 2018 - 58,051,646 / 42,314,414; December 31, 2017 - 57,959,074 / 42,401,443; and June 30, 2017 - 57,972,647 / 42,655,954)		577			577			576			576
Capital Surplus		566,436			563,598			561,161			556,409
Accumulated Other Comprehensive Loss		(53,855	)		(51,097	)		(34,715	)		(25,613	)
Retained Earnings		1,581,168			1,551,900			1,512,218			1,468,328
Treasury Stock, at Cost (Shares: June 30, 2018 - 15,986,219; March 31, 2018 - 15,737,232; December 31, 2017 - 15,557,631; and June 30, 2017 - 15,316,693)		(846,609	)		(823,785	)		(807,372	)		(785,943	)
Total Shareholders' Equity		1,247,717			1,241,193			1,231,868			1,213,757
Total Liabilities and Shareholders' Equity	$	17,124,162		$	17,136,030		$	17,089,052		$	16,981,292


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, 2017	42,401,443		$	576	$	561,161	$	(34,715	)	$	1,512,218		$	(807,372	)	$	1,231,868
Net Income	-			-		-		-			108,758			-			108,758
Other Comprehensive Loss	-			-		-		(11,663	)		-			-			(11,663	)
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from AOCI	-			-		-		(7,477	)		7,477			-			-
Share-Based Compensation	-			-		4,055		-			-			-			4,055
Common Stock Issued under Purchase and Equity Compensation Plans	179,644			1		1,220		-			166			2,992			4,379
Common Stock Repurchased	(497,021	)		-		-		-			-			(42,229	)		(42,229	)
Cash Dividends Declared ($1.12 per share)	-			-		-		-			(47,451	)		-			(47,451	)
Balance as of June 30, 2018	42,084,066		$	577	$	566,436	$	(53,855	)	$	1,581,168		$	(846,609	)	$	1,247,717

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	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


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, 2018						March 31, 2018						June 30, 2017
	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	$	2.9	$	-	(0.52)	%	$	3.0	$	-	2.34	%	$	3.6	$	-	0.29	%
Funds Sold		185.2		0.8	1.81			204.7		0.8	1.48			353.5		0.7	0.78
Investment Securities
Available-for-Sale
Taxable		1,564.5		9.2	2.35			1,595.1		8.9	2.23			1,683.4		8.4	1.98
Non-Taxable		583.6		4.0	2.78			604.7		4.1	2.74			658.9		5.4	3.26
Held-to-Maturity
Taxable		3,471.7		19.2	2.22			3,631.2		19.8	2.18			3,596.1		18.4	2.05
Non-Taxable		237.1		1.9	3.17			238.0		1.9	3.18			240.9		2.3	3.88
Total Investment Securities		5,856.9		34.3	2.35			6,069.0		34.7	2.29			6,179.3		34.5	2.23
Loans Held for Sale		14.8		0.2	4.44			14.1		0.1	3.76			23.8		0.2	4.04
Loans and Leases ¹
Commercial and Industrial		1,307.6		12.8	3.92			1,280.9		11.8	3.73			1,251.2		10.9	3.51
Commercial Mortgage		2,123.5		21.9	4.13			2,096.4		20.6	3.99			1,946.3		18.4	3.80
Construction		183.4		2.2	4.82			189.4		2.1	4.45			240.0		2.8	4.70
Commercial Lease Financing		179.4		1.0	2.24			179.6		1.0	2.21			208.0		1.2	2.27
Residential Mortgage		3,526.9		33.6	3.81			3,478.2		33.3	3.83			3,272.7		31.1	3.80
Home Equity		1,612.7		15.1	3.76			1,595.4		14.6	3.70			1,445.8		13.1	3.62
Automobile		573.6		5.7	3.97			541.5		5.6	4.19			474.1		5.9	4.97
Other ²		455.8		8.9	7.86			442.4		8.6	7.91			379.7		7.6	8.06
Total Loans and Leases		9,962.9		101.2	4.07			9,803.8		97.6	4.02			9,217.8		91.0	3.96
Other		39.8		0.4	3.43			40.7		0.3	2.95			41.0		0.2	2.03
Total Earning Assets ³		16,062.5		136.9	3.41			16,135.3		133.5	3.33			15,819.0		126.6	3.21
Cash and Due from Banks		251.0						228.6						120.8
Other Assets		608.3						593.5						556.1
Total Assets	$	16,921.8					$	16,957.4					$	16,495.9

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	2,969.8		1.2	0.16		$	2,978.1		0.8	0.10		$	2,862.7		0.5	0.07
Savings		5,392.2		3.1	0.23			5,366.3		2.1	0.16			5,376.9		1.6	0.12
Time		1,705.7		5.2	1.21			1,713.5		4.7	1.11			1,480.5		2.9	0.78
Total Interest-Bearing Deposits		10,067.7		9.5	0.38			10,057.9		7.6	0.31			9,720.1		5.0	0.21
Short-Term Borrowings		21.0		0.1	1.80			19.1		0.1	1.45			36.5		0.1	1.10
Securities Sold Under Agreements to Repurchase		505.1		4.6	3.62			505.3		4.5	3.61			505.3		5.1	3.98
Other Debt		235.7		0.9	1.56			257.1		1.0	1.54			267.9		1.1	1.66
Total Interest-Bearing Liabilities		10,829.5		15.1	0.56			10,839.4		13.2	0.49			10,529.8		11.3	0.43
Net Interest Income			$	121.8					$	120.3					$	115.3
Interest Rate Spread					2.85	%					2.84	%					2.78	%
Net Interest Margin					3.04	%					3.00	%					2.92	%
Noninterest-Bearing Demand Deposits		4,641.6						4,662.4						4,533.0
Other Liabilities		209.0						220.0						228.3
Shareholders' Equity		1,241.7						1,235.6						1,204.8
Total Liabilities and Shareholders' Equity	$	16,921.8					$	16,957.4					$	16,495.9

¹		Non-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 21% for 2018 and 35% for 2017, of $1,298,000 for the three months ended June 30, 2018, $1,344,000 for the three months ended March 31, 2018, and $3,054,000 for the three months ended June 30, 2017.


Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis									Table 7b
	Six Months Ended						Six Months Ended
	June 30, 2018						June 30, 2017
	Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	2.9	$	-	0.94	%	$	3.5	$	-	0.42	%
Funds Sold		194.9		1.6	1.64			448.3		1.6	0.70
Investment Securities
Available-for-Sale
Taxable		1,579.7		18.0	2.29			1,654.6		15.9	1.93
Non-Taxable		594.1		8.2	2.76			659.8		10.7	3.26
Held-to-Maturity
Taxable		3,551.0		39.0	2.20			3,592.9		36.6	2.04
Non-Taxable		237.6		3.8	3.17			241.4		4.7	3.88
Total Investment Securities		5,962.4		69.0	2.32			6,148.7		67.9	2.21
Loans Held for Sale		14.5		0.3	4.11			27.1		0.6	4.01
Loans and Leases ¹
Commercial and Industrial		1,294.3		24.6	3.83			1,257.4		21.5	3.44
Commercial Mortgage		2,110.0		42.4	4.06			1,914.1		35.9	3.78
Construction		186.4		4.3	4.63			249.5		5.7	4.62
Commercial Lease Financing		179.5		2.0	2.22			208.3		2.3	2.22
Residential Mortgage		3,502.6		66.9	3.82			3,237.4		62.0	3.83
Home Equity		1,604.1		29.7	3.73			1,406.8		25.0	3.59
Automobile		557.7		11.3	4.08			467.9		11.6	5.01
Other ²		449.1		17.6	7.88			378.2		15.0	7.98
Total Loans and Leases		9,883.7		198.8	4.04			9,119.6		179.0	3.95
Other		40.3		0.7	3.19			40.5		0.4	2.16
Total Earning Assets ³		16,098.7		270.4	3.37			15,787.7		249.5	3.17
Cash and Due from Banks		239.9						126.5
Other Assets		600.9						551.2
Total Assets	$	16,939.5					$	16,465.4

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	2,974.0		1.9	0.13		$	2,864.6		0.8	0.06
Savings		5,379.3		5.3	0.20			5,391.4		2.9	0.11
Time		1,709.6		9.8	1.16			1,397.5		5.0	0.72
Total Interest-Bearing Deposits		10,062.9		17.0	0.34			9,653.5		8.7	0.18
Short-Term Borrowings		20.0		0.2	1.64			23.1		0.1	0.91
Securities Sold Under Agreements to Repurchase		505.2		9.2	3.61			508.8		10.2	4.01
Other Debt		246.3		1.9	1.55			267.9		2.2	1.66
Total Interest-Bearing Liabilities		10,834.4		28.3	0.52			10,453.3		21.2	0.41
Net Interest Income			$	242.1					$	228.3
Interest Rate Spread					2.85	%					2.76	%
Net Interest Margin					3.02	%					2.90	%
Noninterest-Bearing Demand Deposits		4,651.9						4,582.6
Other Liabilities		214.6						238.3
Shareholders' Equity		1,238.6						1,191.2
Total Liabilities and Shareholders' Equity	$	16,939.5					$	16,465.4

¹		Non-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 21% for 2018 and 35% for 2017, of $2,642,000 for the six months ended June 30, 2018 and $6,115,000 for the six months ended June 30, 2017.


Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended June 30, 2018
	Compared to March 31, 2018
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(0.1	)	$	0.1		$	-
Investment Securities
Available-for-Sale
Taxable		(0.2	)		0.5			0.3
Non-Taxable		(0.1	)		-			(0.1	)
Held-to-Maturity
Taxable		(0.9	)		0.3			(0.6	)
Total Investment Securities		(1.2	)		0.8			(0.4	)
Loans Held for Sale		-			0.1			0.1
Loans and Leases
Commercial and Industrial		0.3			0.7			1.0
Commercial Mortgage		0.3			1.0			1.3
Construction		(0.1	)		0.2			0.1
Residential Mortgage		0.5			(0.2	)		0.3
Home Equity		0.2			0.3			0.5
Automobile		0.4			(0.3	)		0.1
Other ²		0.3			-			0.3
Total Loans and Leases		1.9			1.7			3.6
Other		-			0.1			0.1
Total Change in Interest Income		0.6			2.8			3.4

Change in Interest Expense:
Interest-Bearing Deposits
Demand		-			0.4			0.4
Savings		-			1.0			1.0
Time		-			0.5			0.5
Total Interest-Bearing Deposits		-			1.9			1.9
Securities Sold Under Agreements to Repurchase		-			0.1			0.1
Other Debt		(0.1	)		-			(0.1	)
Total Change in Interest Expense		(0.1	)		2.0			1.9

Change in Net Interest Income	$	0.7		$	0.8		$	1.5

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, 2018
	Compared to June 30, 2017
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(0.5	)	$	0.6		$	0.1
Investment Securities
Available-for-Sale
Taxable		(0.6	)		1.4			0.8
Non-Taxable		(0.6	)		(0.8	)		(1.4	)
Held-to-Maturity
Taxable		(0.7	)		1.5			0.8
Non-Taxable		-			(0.4	)		(0.4	)
Total Investment Securities		(1.9	)		1.7			(0.2	)
Loans Held for Sale		(0.1	)		0.1			-
Loans and Leases
Commercial and Industrial		0.6			1.3			1.9
Commercial Mortgage		1.8			1.7			3.5
Construction		(0.7	)		0.1			(0.6	)
Commercial Lease Financing		(0.2	)		-			(0.2	)
Residential Mortgage		2.4			0.1			2.5
Home Equity		1.5			0.5			2.0
Automobile		1.1			(1.3	)		(0.2	)
Other ²		1.5			(0.2	)		1.3
Total Loans and Leases		8.0			2.2			10.2
Other		-			0.2			0.2
Total Change in Interest Income		5.5			4.8			10.3

Change in Interest Expense:
Interest-Bearing Deposits
Demand		-			0.7			0.7
Savings		-			1.5			1.5
Time		0.5			1.8			2.3
Total Interest-Bearing Deposits		0.5			4.0			4.5
Short-Term Borrowings		(0.1	)		0.1			-
Securities Sold Under Agreements to Repurchase		-			(0.5	)		(0.5	)
Other Debt		(0.1	)		(0.1	)		(0.2	)
Total Change in Interest Expense		0.3			3.5			3.8

Change in Net Interest Income	$	5.2		$	1.3		$	6.5

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, 2018
	Compared to June 30, 2017
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(1.3	)	$	1.3		$	-
Investment Securities
Available-for-Sale
Taxable		(0.8	)		2.9			2.1
Non-Taxable		(1.0	)		(1.5	)		(2.5	)
Held-to-Maturity
Taxable		(0.4	)		2.8			2.4
Non-Taxable		(0.1	)		(0.8	)		(0.9	)
Total Investment Securities		(2.3	)		3.4			1.1
Loans Held for Sale		(0.3	)		-			(0.3	)
Loans and Leases
Commercial and Industrial		0.6			2.5			3.1
Commercial Mortgage		3.8			2.7			6.5
Construction		(1.4	)		-			(1.4	)
Commercial Lease Financing		(0.3	)		-			(0.3	)
Residential Mortgage		5.0			(0.1	)		4.9
Home Equity		3.6			1.1			4.7
Automobile		2.0			(2.3	)		(0.3	)
Other ²		2.8			(0.2	)		2.6
Total Loans and Leases		16.1			3.7			19.8
Other		-			0.3			0.3
Total Change in Interest Income		12.2			8.7			20.9

Change in Interest Expense:
Interest-Bearing Deposits
Demand		-			1.1			1.1
Savings		-			2.4			2.4
Time		1.3			3.5			4.8
Total Interest-Bearing Deposits		1.3			7.0			8.3
Short-Term Borrowings		-			0.1			0.1
Securities Sold Under Agreements to Repurchase		(0.1	)		(0.9	)		(1.0	)
Other Debt		(0.2	)		(0.1	)		(0.3	)
Total Change in Interest Expense		1.0			6.1			7.1

Change in Net Interest Income	$	11.2		$	2.6		$	13.8

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
Salaries and Benefits									Table 9
	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,
(dollars in thousands)	2018		2018		2017		2018		2017
Salaries	$	33,269	$	32,704	$	30,553	$	65,973	$	59,978
Incentive Compensation		4,416		5,178		5,125		9,594		10,899
Share-Based Compensation		2,423		2,081		2,879		4,504		5,182
Commission Expense		1,272		954		1,791		2,226		3,627
Retirement and Other Benefits		4,178		4,841		3,722		9,019		8,326
Payroll Taxes		2,568		4,172		2,427		6,740		6,371
Medical, Dental, and Life Insurance		3,820		3,461		3,136		7,281		6,415
Separation Expense		202		1,031		43		1,233		43
Total Salaries and Benefits	$	52,148	$	54,422	$	49,676	$	106,570	$	100,841

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


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)	2018		2018		2017		2017		2017
Commercial
Commercial and Industrial	$	1,282,967	$	1,329,096	$	1,279,347	$	1,252,238	$	1,241,953
Commercial Mortgage		2,169,357		2,097,339		2,103,967		2,050,998		2,009,886
Construction		185,350		186,530		202,253		232,487		248,030
Lease Financing		178,598		179,771		180,931		204,240		205,043
Total Commercial		3,816,272		3,792,736		3,766,498		3,739,963		3,704,912
Consumer
Residential Mortgage		3,548,444		3,505,239		3,466,773		3,366,634		3,317,179
Home Equity		1,622,314		1,601,698		1,585,455		1,528,353		1,473,123
Automobile		592,705		558,468		528,474		506,102		484,092
Other ¹		473,588		458,487		449,747		432,904		408,307
Total Consumer		6,237,051		6,123,892		6,030,449		5,833,993		5,682,701
Total Loans and Leases	$	10,053,323	$	9,916,628	$	9,796,947	$	9,573,956	$	9,387,613


Deposits
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)		2018		2018		2017		2017		2017
Consumer	$	7,672,435	$	7,665,926	$	7,478,228	$	7,303,546	$	7,278,536
Commercial		5,921,414		5,897,194		5,973,763		6,091,800		5,903,639
Public and Other		1,349,509		1,394,013		1,431,977		1,652,814		1,602,474
Total Deposits	$	14,943,358	$	14,957,133	$	14,883,968	$	15,048,160	$	14,784,649

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)		2018			2018			2017			2017			2017
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial	$	917		$	986		$	448		$	901		$	175
Commercial Mortgage		659			1,367			1,398			1,425			1,460
Total Commercial		1,576			2,353			1,846			2,326			1,635
Consumer
Residential Mortgage		6,722			6,725			9,243			9,188			9,337
Home Equity		3,933			3,890			3,991			4,128			3,405
Total Consumer		10,655			10,615			13,234			13,316			12,742
Total Non-Accrual Loans and Leases		12,231			12,968			15,080			15,642			14,377
Foreclosed Real Estate		2,926			2,768			1,040			1,393			1,991
Total Non-Performing Assets	$	15,157		$	15,736		$	16,120		$	17,035		$	16,368

Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial	$	2		$	-		$	-		$	5		$	-
Commercial Mortgage		5,680			-			-			-			-
Total Commercial		5,682			-			-			5			-
Consumer
Residential Mortgage	$	2,281		$	2,927		$	2,703		$	2,933		$	2,269
Home Equity		3,016			3,013			1,624			1,392			2,343
Automobile		674			333			886			806			539
Other¹		1,660			1,895			1,934			1,528			1,859
Total Consumer		7,631			8,168			7,147			6,659			7,010
Total Accruing Loans and Leases Past Due 90 Days or More	$	13,313		$	8,168		$	7,147		$	6,664		$	7,010
Restructured Loans on Accrual Status and Not Past Due 90 Days or More	$	50,212		$	56,743		$	55,672		$	55,038		$	53,158
Total Loans and Leases	$	10,053,323		$	9,916,628		$	9,796,947		$	9,573,956		$	9,387,613

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases		0.12	%		0.13	%		0.15	%		0.16	%		0.15	%

Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate		0.15	%		0.16	%		0.16	%		0.18	%		0.17	%

Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate		0.04	%		0.06	%		0.05	%		0.06	%		0.04	%

Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate		0.22	%		0.22	%		0.24	%		0.25	%		0.26	%

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		0.28	%		0.24	%		0.24	%		0.25	%		0.25	%

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter	$	15,736		$	16,120		$	17,035		$	16,368		$	19,003
Additions		1,949			2,332			2,109			2,212			1,572
Reductions
Payments		(1,847	)		(1,251	)		(368	)		(199	)		(497	)
Return to Accrual Status		(126	)		(1,270	)		(1,779	)		(305	)		(1,370	)
Sales of Foreclosed Real Estate		(421	)		-			(353	)		(951	)		(1,883	)
Charge-offs/Write-downs		(134	)		(195	)		(524	)		(90	)		(457	)
Total Reductions		(2,528	)		(2,716	)		(3,024	)		(1,545	)		(4,207	)
Balance at End of Quarter	$	15,157		$	15,736		$	16,120		$	17,035		$	16,368

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)	2018			2018			2017			2018			2017
Balance at Beginning of Period	$	114,760		$	114,168		$	111,636		$	114,168		$	110,845
Loans and Leases Charged-Off
Commercial
Commercial and Industrial		(485	)		(206	)		(124	)		(691	)		(298	)
Consumer
Residential Mortgage		(3	)		(97	)		(506	)		(100	)		(689	)
Home Equity		(44	)		(91	)		(282	)		(135	)		(645	)
Automobile		(1,515	)		(2,254	)		(1,512	)		(3,769	)		(3,802	)
Other ¹		(3,614	)		(3,340	)		(3,063	)		(6,954	)		(5,757	)
Total Loans and Leases Charged-Off		(5,661	)		(5,988	)		(5,487	)		(11,649	)		(11,191	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial		366			328			265			694			601
Lease Financing		-			-			1			-			1
Consumer
Residential Mortgage		214			220			264			434			368
Home Equity		451			625			838			1,076			1,346
Automobile		738			599			607			1,337			1,227
Other ¹		642			683			551			1,325			1,078
Total Recoveries on Loans and Leases Previously Charged-Off		2,411			2,455			2,526			4,866			4,621
Net Loans and Leases Charged-Off		(3,250	)		(3,533	)		(2,961	)		(6,783	)		(6,570	)
Provision for Credit Losses		3,500			4,125			4,250			7,625			8,650
Provision for Unfunded Commitments		-			-			250			-			250
Balance at End of Period ²	$	115,010		$	114,760		$	113,175		$	115,010		$	113,175

Components
Allowance for Loan and Lease Losses	$	108,188		$	107,938		$	106,353		$	108,188		$	106,353
Reserve for Unfunded Commitments		6,822			6,822			6,822			6,822			6,822
Total Reserve for Credit Losses	$	115,010		$	114,760		$	113,175		$	115,010		$	113,175

Average Loans and Leases Outstanding	$	9,962,860		$	9,803,753		$	9,217,779		$	9,883,746		$	9,119,610

Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)		0.13	%		0.15	%		0.13	%		0.14	%		0.15	%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding		1.08	%		1.09	%		1.13	%		1.08	%		1.13	%

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
							Investment
							Services and
	Retail			Commercial			Private			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Banking			and Other			Total
Three Months Ended June 30, 2018
Net Interest Income	$	65,683		$	44,010		$	10,526		$	277		$	120,496
Provision for Credit Losses		3,445			(194	)		-			249			3,500
Net Interest Income After Provision for Credit Losses		62,238			44,204			10,526			28			116,996
Noninterest Income		19,598			5,512			14,745			1,443			41,298
Noninterest Expense		(51,939	)		(19,858	)		(16,400	)		(2,594	)		(90,791	)
Income Before Provision for Income Taxes		29,897			29,858			8,871			(1,123	)		67,503
Provision for Income Taxes		(7,473	)		(6,740	)		(2,338	)		3,766			(12,785	)
Net Income	$	22,424		$	23,118		$	6,533		$	2,643		$	54,718
Total Assets as of June 30, 2018	$	6,142,457		$	3,799,535		$	342,464		$	6,839,706		$	17,124,162


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


Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information													Table 13b
							Investment
							Services and
	Retail			Commercial			Private			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Banking			and Other			Total
Six Months Ended June 30, 2018
Net Interest Income	$	130,080		$	86,908		$	20,413		$	2,051		$	239,452
Provision for Credit Losses		7,188			(345	)		(60	)		842			7,625
Net Interest Income After Provision for Credit Losses		122,892			87,253			20,473			1,209			231,827
Noninterest Income		38,851			11,154			28,415			6,913			85,333
Noninterest Expense		(106,538	)		(40,190	)		(32,607	)		(5,840	)		(185,175	)
Income Before Provision for Income Taxes		55,205			58,217			16,281			2,282			131,985
Provision for Income Taxes		(13,764	)		(13,564	)		(4,292	)		8,393			(23,227	)
Net Income	$	41,441		$	44,653		$	11,989		$	10,675		$	108,758
Total Assets as of June 30, 2018	$	6,142,457		$	3,799,535		$	342,464		$	6,839,706		$	17,124,162


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


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)		2018			2018			2017			2017			2017
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	101,311		$	97,634		$	96,974		$	94,621		$	90,909
Income on Investment Securities
Available-for-Sale		12,380			12,141			11,866			11,987			11,835
Held-to-Maturity		20,711			21,296			21,782			20,334			19,918
Deposits		(4)			18			3			5			2
Funds Sold		846			757			717			1,579			696
Other		341			300			271			235			208
Total Interest Income		135,585			132,146			131,613			128,761			123,568
Interest Expense
Deposits		9,459			7,581			6,980			6,663			4,998
Securities Sold Under Agreements to Repurchase		4,617			4,564			4,664			4,664			5,079
Funds Purchased		83			53			81			-			39
Short-Term Borrowings		13			16			-			-			64
Other Debt		917			976			1,118			1,117			1,109
Total Interest Expense		15,089			13,190			12,843			12,444			11,289
Net Interest Income		120,496			118,956			118,770			116,317			112,279
Provision for Credit Losses		3,500			4,125			4,250			4,000			4,250
Net Interest Income After Provision for Credit Losses		116,996			114,831			114,520			112,317			108,029
Noninterest Income
Trust and Asset Management		11,356			11,181			11,105			11,050			11,796
Mortgage Banking		2,179			2,145			2,593			3,237			3,819
Service Charges on Deposit Accounts		6,865			7,129			8,053			8,188			8,009
Fees, Exchange, and Other Service Charges		14,400			14,333			13,784			13,764			13,965
Investment Securities Gains (Losses), Net		(1,702	)		(666	)		(617	)		(566	)		(520	)
Annuity and Insurance		1,847			1,206			1,273			1,429			2,161
Bank-Owned Life Insurance		1,796			1,842			1,609			1,861			1,550
Other		4,557			6,865			4,055			3,447			4,456
Total Noninterest Income		41,298			44,035			41,855			42,410			45,236
Noninterest Expense
Salaries and Benefits		52,148			54,422			51,698			51,190			49,676
Net Occupancy		8,588			8,534			8,510			7,727			8,131
Net Equipment		5,845			5,527			5,454			5,417			5,706
Data Processing		4,563			3,891			4,310			3,882			3,881
Professional Fees		2,546			2,773			3,266			3,044			2,592
FDIC Insurance		2,182			2,157			2,253			2,107			2,097
Other		14,919			17,080			16,845			15,231			16,106
Total Noninterest Expense		90,791			94,384			92,336			88,598			88,189
Income Before Provision for Income Taxes		67,503			64,482			64,039			66,129			65,076
Provision for Income Taxes		12,785			10,442			21,086			20,248			20,414
Net Income	$	54,718		$	54,040		$	42,953		$	45,881		$	44,662

Basic Earnings Per Share	$	1.31		$	1.29		$	1.02		$	1.09		$	1.05
Diluted Earnings Per Share	$	1.30		$	1.28		$	1.01		$	1.08		$	1.05

Balance Sheet Totals
Loans and Leases	$	10,053,323		$	9,916,628		$	9,796,947		$	9,573,956		$	9,387,613
Total Assets		17,124,162			17,136,030			17,089,052			17,268,302			16,981,292
Total Deposits		14,943,358			14,957,133			14,883,968			15,048,160			14,784,649
Total Shareholders' Equity		1,247,717			1,241,193			1,231,868			1,227,893			1,213,757

Performance Ratios
Return on Average Assets		1.30	%		1.29	%		1.00	%		1.07	%		1.09	%
Return on Average Shareholders' Equity		17.68			17.74			13.85			14.89			14.87
Efficiency Ratio ¹		56.12			57.91			57.49			55.82			55.99
Net Interest Margin ²		3.04			3.00			2.98			2.92			2.92

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


Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends													Table 15
	Five Months Ended				Year Ended
($ in millions; jobs in thousands)	May 31, 2018				December 31, 2017					December 31, 2016
Hawaii Economic Trends
State General Fund Revenues¹	$	3,003.1	12.1	%	$	6,485.5		4.3	%	$	6,215.4		3.6	%
General Excise and Use Tax Revenue¹	$	1,432.5	3.5	%	$	3,349.8		4.5	%	$	3,205.7		2.0	%
Jobs ²		672.8				668.2					669.4

								June 30,		December 31,
(spot rates)								2018		2017			2016
Unemployment³
Statewide, seasonally adjusted								2.1	%		2.1	%	2.9	%

Oahu								2.6			1.7		2.4
Island of Hawaii								3.4			2.0		3.1
Maui								2.7			1.8		2.7
Kauai								2.9			1.7		2.8

					June 30,			December 31,
(percentage change, except months of inventory)					2018			2017		2016			2015
Housing Trends (Single Family Oahu) ⁴
Median Home Price						3.9	%	2.7	%		5.0	%	3.7	%
Home Sales Volume (units)						(1.6)	%	6.3	%		6.5	%	5.2	%
Months of Inventory						2.7		2.1			2.5		2.6

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

May 31, 2018								804.1					7.0
April 30, 2018								803.0					6.6
March 31, 2018								903.6					12.5
February 28, 2018								778.6					10.3
January 31, 2018								796.5					5.4
December 31, 2017								880.4					6.3
November 30, 2017								748.3					7.3
October 31, 2017								737.0					2.8
September 30, 2017								701.8					5.1
August 31, 2017								818.6					4.8
July 31, 2017								891.9					6.8
June 30, 2017								835.9					4.5
May 31, 2017								751.2					4.5
April 30, 2017								753.0					7.5
March 31, 2017								802.8					2.1
February 28, 2017								706.1					2.5
January 31, 2017								756.0					4.9
December 31, 2016								828.2					3.6
November 30, 2016								697.1					4.7
October 31, 2016								717.0					4.3
September 30, 2016								667.6					3.1
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

¹		Source: Hawaii Department of Business, Economic Development & Tourism
²		Source: U. S. Bureau of Labor Statistics
³		Source: Hawaii Department of Labor and Industrial Relations, County jobs data not seasonally adjusted.
⁴		Source: Honolulu Board of REALTORS
⁵		Source: Hawaii Tourism Authority

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Source: Bank of Hawaii Corporation

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Financial Release

Bank of Hawaii Corporation Second Quarter 2018 Financial Results