UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

BANK OF HAWAII CORPORATION

(Exact name of registrant as specified in its charter)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

Item 2.02.               Results of Operations and Financial Conditions.

On January 24, 2005, Bank of Hawaii Corporation announced its results of operations for the year ending December 31, 2004. The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.

Item 9.01.               Financial Statements and Exhibits

(c)           Exhibits

The following exhibit is furnished as a part of this report:

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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Exhibit 99.1

Bank of Hawaii Corporation 2004 Financial Results

•             2004 Diluted Earnings Per Share $3.08, Up 39% From 2003

•             2004 Net Income $173.3 Million, Up 28% From 2003

•             Board of Directors Increases Share Repurchase Authorization $100 Million

•             Board of Directors Declares Dividend of $0.33 Per Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (January 24, 2005) — Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share for 2004 of $3.08, up $0.87 or 39.4 percent from diluted earnings per share of $2.21 in 2003.  Net income for the year was $173.3 million, up $38.1 million or 28.2 percent from $135.2 million in the previous year.  The return on average assets in 2004 was 1.78 percent, up from 1.44 percent in 2003.  The return on average equity for the year was 22.78 percent, up from 15.02 percent in 2003.

“I am very pleased with Bank of Hawaii Corporation’s financial performance in 2004.  We exceeded the financial objectives of the first year of our three-year plan,” said Allan R. Landon, Chairman and CEO.  “Additionally, we grew our businesses, improved our processes, and maintained excellent asset quality.  The Hawaii economy remains solid and we are optimistic about 2005.”

Diluted earnings per share for the fourth quarter of 2004 were $0.82, up $0.16 or 24.2 percent from $0.66 per diluted share for the same period last year.  Net income in the fourth quarter of 2004 was $46.2 million, up $7.6 million or 19.6 percent from net income of $38.7 million in the fourth quarter last year.  Results for the fourth quarter of 2004 included a return to income of $6.5 million before tax ($4.1 million after tax or $0.07 per diluted share), resulting from a release of the allowance for loan and lease losses due to further improvement in the Company’s credit quality and continued strong economic conditions.  The return on average assets for the fourth quarter of 2004 was 1.89 percent, up from 1.66 percent in the fourth quarter of 2003.  The return on average equity was 23.63 percent for the quarter, up from 18.59 percent in the same quarter last year.

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Financial Highlights

Net interest income, on a taxable equivalent basis, for the fourth quarter of 2004 was $100.0 million, up $1.2 million from $98.8 million in the third quarter of 2004 and up $6.6 million from $93.4 million in the fourth quarter last year.  The increase in net interest income from the previous quarter was largely due to an increase in average earning assets.  An analysis of the change in net interest income for the full year of 2004 is included in Table 6.

The net interest margin was 4.40 percent for the fourth quarter of 2004, a 1 basis point increase from 4.39 percent in the previous quarter and a 5 basis point increase from 4.35 percent in the fourth quarter of 2003.  The net interest margin for the full year of 2004 was 4.32 percent, a 9 basis point increase from 4.23 percent in 2003.

The Company returned to income $6.5 million of the allowance for loan and lease losses during the fourth quarter of 2004.  This was attributable to further improvement in the credit quality of the loan portfolio, lower than anticipated net charge-offs during 2004, management’s ongoing assessment of the portfolio, and continued strength in the economic environment.  In addition, the Company revised its allocation of the components of the allowance for loan and lease losses as a result of current accounting interpretations.

Non-interest income was $48.4 million for the fourth quarter, a decrease of $4.7 million or 8.9 percent compared to non-interest income of $53.1 million in the third quarter of 2004.  Non-interest income in the third quarter of 2004 included a gain of $5.2 million on the sale of assets at the end of a leveraged lease transaction.  Excluding this gain, non-interest income increased $0.5 million as growth in trust and asset management fees and service charges on deposits offset losses on the sale of investment securities and a decline in insurance income.  Non-interest income was down $1.1 million or 2.2 percent from non-interest income of $49.4 million in the fourth quarter of 2003 largely due to a decline in gains on sales of mortgage loans.

Non-interest expense was $82.1 million in the fourth quarter of 2004, down $2.1 million or 2.5 percent from $84.2 million in the previous quarter and down $1.3 million or 1.6 percent from $83.4 million in the same quarter last year.  The decrease for both periods was due to a reduction in salaries and benefits related to incentive compensation and separation expenses.  In addition, the fourth quarter of 2003 included higher stock-based compensation expense that was offset by a curtailment gain on post-retirement benefits.  An analysis of salary and benefit expenses is included in Table 7.

The efficiency ratio for the fourth quarter of 2004 was 55.37 percent, an improvement from 55.45 percent in the previous quarter and from 58.41 percent in the same quarter last year.  The efficiency ratio for the full year of 2004 was 56.14 percent compared to 63.38 percent for 2003.  Excluding systems replacement costs, the efficiency ratio for 2003 was 59.51 percent.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services Group, and Treasury and Other Corporate.  Results are determined based on the Company’s internal financial management reporting process and organizational structure.  Previously reported results have been reclassified to conform to current methodologies.  Business segment performance details are summarized in Tables 11a and 11b.

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Asset Quality

Bank of Hawaii Corporation’s strong credit quality continued to improve during the fourth quarter of 2004.  Non-performing assets were $13.9 million at the end of the quarter, a decrease of $2.1 million, or 13.3 percent, compared to non-performing assets of $16.0 million at the end of the previous quarter.  Non-performing assets declined $17.9 million, or 56.3 percent, compared to $31.7 million at the end of 2003.  At December 31, 2004 the ratio of non-performing assets to total loans and foreclosed real estate was 0.23 percent compared with 0.27 percent at September 30, 2004 and 0.55 percent at December 31, 2003.

Non-accrual loans were $13.7 million at December 31, 2004, a reduction of $2.1 million, or 13.3 percent, from $15.8 million at September 30, 2004 and down $13.7 million, or 50.0 percent, from $27.3 million at December 31, 2003.  Non-accrual loans as a percentage of total loans were 0.23 percent at December 31, 2004, down from 0.27 percent at the end of the previous quarter and down from 0.48 percent at the end of 2003.

Net charge-offs during the fourth quarter of 2004 were $4.6 million, or 0.31 percent (annualized) of total average loans, compared to $0.3 million, or 0.02 percent (annualized) of total average loans in the third quarter of 2004.  Net charge-offs in the fourth quarter of 2004 were comprised of $6.7 million in charge-offs partially offset by recoveries of $2.1 million.  Net charge-offs during the fourth quarter of 2003 were $3.6 million, or 0.26 percent (annualized) of total average loans.   Net charge-offs for the full year of 2004 were $5.5 million, or 0.09 percent of total average loans, a decrease of $8.3 million, or 60.2 percent, from net charge-offs of $13.8 million, or 0.25 percent of total average loans in 2003.

The allowance for loan and lease losses was $106.8 million at December 31, 2004 down from $124.7 million at September 30, 2004 and down from $129.1 million at December 31, 2003.   The decrease in the allowance from the previous quarter was partially due to the previously mentioned $6.5 million return to income from the allowance for loan and lease losses.  The decrease from the previous year also reflects a $3.5 million return to income from the allowance for loan and lease losses during the second quarter of 2004.  In addition, during the fourth quarter of 2004 $6.8 million was reclassified from the allowance for loan and lease losses to other liabilities representing the estimate for probable credit losses inherent in unfunded commitments to extend credit.  The process used to determine the reserve for unfunded commitments remains consistent with the process for determining the allowance for loan and lease losses.  The allowance for unfunded commitments at December 31, 2004 was up from $6.7 million at September 30, 2004 and down from $6.9 million at December 31, 2003.

The ratio of the allowance for loan and lease losses to total loans was 1.78 percent at December 31, 2004, down from 2.14 percent at September 30, 2004 and down from 2.24 percent at December 31, 2003.  If the allowance for unfunded commitments had been reclassified at either September 30, 2004 or at December 31, 2003, the ratio of the allowance for loan and lease losses to total loans would have been 2.03 percent and 2.12 percent, respectively.

Concentrations of credit exposure to selected components of the portfolio are summarized in Table 8.

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Other Financial Highlights

Total assets were $9.77 billion at December 31, 2004, up from $9.59 billion at September 30, 2004 and up from $9.46 billion at December 31, 2003.  Total loans and leases were $5.99 billion at December 31, 2004, up from $5.82 billion at September 30, 2004 and up from $5.76 billion at December 31, 2003.  Commercial lending increased during the quarter.  Total commercial loans were $2.04 billion at December 31, 2004, up $87 million compared to $1.96 billion at September 30, 2004 and up $51 million from $1.99 billion at December 31, 2003.  Consumer lending continued its solid pace in the fourth quarter.  Total consumer loans were $3.86 billion at December 31, 2004, up $79 million compared to $3.78 billion at the end of the previous quarter and up $163 million compared to $3.69 billion at the end of 2003.

Total deposits at December 31, 2004 were $7.56 billion, up $151 million from total deposits of $7.41 billion at September 30, 2004 and up $232 million from total deposits of $7.33 billion at December 31, 2003.  Non-interest bearing demand deposits were $1.98 billion at December 31, 2004, up $79 million compared to $1.90 billion at September 30, 2004 and up $44 million from $1.93 billion at December 31, 2003.

During the fourth quarter of 2004, Bank of Hawaii Corporation repurchased 1.0 million shares of common stock at a total cost of $50.3 million under its share repurchase program.  The average cost was $49.01 per share repurchased during the quarter.  From the beginning of the share repurchase program in July 2001 through December 31, 2004, the Company repurchased a total of 34.9 million shares and returned a total of $1,087.5 million to the shareholders at an average cost of $31.13 per share.

The Company’s Board of Directors has increased the authorization under the share repurchase program by an additional $100 million of common stock.  This new authorization, combined with the previously announced authorizations of $1,150 million, brings the total repurchase authority to $1,250 million.  From January 1, 2005 through January 21, 2005, the Company repurchased an additional 0.4 million shares of common stock at an average cost of $48.98 per share.  Remaining buyback authority under the share repurchase program was $141.7 million at January 21, 2005.

The Company’s capital and liquidity remain strong.  At December 31, 2004 the Tier 1 leverage ratio was 8.29 percent compared to 7.69 percent at September 30, 2004 and 8.43 percent at December 31, 2003.

The Company’s Board of Directors has declared a quarterly cash dividend of $0.33 per share on the Company’s outstanding shares.  The dividend will be payable on March 14, 2005 to shareholders of record at the close of business on February 28, 2005.

Outlook

Hawaii enters 2005 with continued payroll growth, low unemployment, nominal personal income growth approaching 6.0 percent, reasonable inflation, and tourism at record levels.  The dollar’s continuing weakness and solid economic growth in Asia should contribute to further increases in international tourism.  Construction and real estate investment are expected to remain strong drivers of growth in the Hawaii economy.

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Bank of Hawaii Corporation currently estimates that its net income for 2005 should be approximately $174 million to $177 million.  Based on current economic conditions, the Company expects further credit quality improvement and, as a result, the allowance for loan and lease losses may be further reduced.  Net income estimates for 2005 include a $10 million provision for loan and lease losses.  An analysis of credit quality is performed quarterly to determine the adequacy of the allowance for loan and lease losses.  The results of this analysis determine the timing and amount of the provision for loan and lease losses.  Earnings per share and return on equity projections continue to be dependent upon, among other things, the terms and timing of share repurchases.

Conference Call Information

The Company will review its fourth quarter 2004 financial results today at 8:00 a.m. Hawaii Time (1:00 p.m. Eastern Time).  The presentation will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation’s web site, www.boh.com.  The conference call number is 800-573-4752 in the United States or 617-224-4324 for international callers.  No confirmation code is required to access the call.  A replay will be available for one week beginning Monday, January 24, 2005 by calling 888-286-8010 in the United States or 617-801-6888 for international callers and entering the number 60030955 when prompted.  A replay of the presentation will also be available via the Investor Relations link of the Company’s web site.

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 and is the largest independent financial institution in Hawaii.  For more information about Bank of Hawaii Corporation, see the Company’s web site, www.boh.com.

Forward-Looking Statements

This news release, including the statements under the caption “Outlook,” contains forward-looking statements concerning, among other things, the economic and business environment in our service area and elsewhere, credit quality, the expected level of loan and lease loss provisioning, and anticipated net income and other financial and business matters in future periods.  Our forward-looking  statements are based on numerous assumptions, any of which could prove to be  inaccurate and actual results may differ materially from those projected for a  variety of reasons, including, but not limited to: 1) unanticipated changes in  business and economic conditions, the competitive environment, fiscal and  monetary policies, or legislation in Hawaii and the other markets we serve; 2) changes in our credit quality or risk profile which may increase or decrease the  required level of allowance for loan and lease losses; 3) changes in market  interest rates that may affect our credit markets and ability to maintain our  net interest margin; 4) changes to the amount and timing of our proposed equity  repurchases and repayment of maturing debt; 5) inability to achieve expected  benefits of our business process changes due to adverse changes in  implementation processes or costs, operational savings, or timing; 6) real or  threatened acts of war or terrorist activity affecting business conditions; and  7) adverse weather and other natural conditions impacting our and our customers’  operations.  We do not undertake any obligation to update forward-looking statements to reflect later events or circumstances.

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Bank of Hawaii Corporation and Subsidiaries

¹  The efficiency ratio is defined as non-interest expense divided by total revenue (net interest income and non-interest income).

Bank of Hawaii Corporation and Subsidiaries

Bank of Hawaii Corporation and Subsidiaries

Bank of Hawaii Corporation and Subsidiaries

Bank of Hawaii Corporation and Subsidiaries