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
 
                                                               Date of Report	 	
                                                 (Date of earliest event reported)	July 25, 2008	
 
BANK OF HAWAII CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware	 	1-6887	 	99-0148992	
(State of Incorporation)	 	(Commission	 	(IRS Employer	
 	 	File Number)	 	Identification No.)	
 	 	 	 	 	
130 Merchant Street, Honolulu, Hawaii	 	96813	
(Address of principal executive offices)	 	(Zip Code)	
 
(Registrant’s telephone number,	 	 	
including area code)	 	(808) 694-8822	
 
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 July 28, 2008, Bank of Hawaii Corporation announced its results of operations for the quarter ending June 30, 2008.  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 5.02                                              Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
 
(e)  On April 25, 2008, stockholders approved an amendment to the Articles of Incorporation to eliminate the classified board of directors.  As a result of that change, each director serves a one year term, or until his or her successor is elected and qualified.
 
The Board has concluded that that it is appropriate to realign the Board’s equity compensation program to reflect the change in Board structure.  Prior to 2005, awards of restricted stock to Directors generally vested when the Director’s last term expires.  In the case of Director option grants prior to the 2005, the stock issued upon exercise was restricted stock subject to the same vesting conditions as awards of restricted stock.
 
Stockholders approved an amendment and restatement of the Director Stock Compensation Plan (the “Plan”) at the 2005 annual meeting.  Restricted stock awards issued in 2005 through 2007 under the Plan have included a three-year cliff vesting provision; restricted stock awards beginning in 2008 have a one-year vesting provision.  Stock options have not been granted to Directors under the Plan since 2006.  The stock options granted under the Plan between 2005 and 2006 vest in equal annual installments over a three-year period.
 
On July 25, 2008, the Board approved offering to its Directors the opportunity to amend the terms of restricted stock and option awards granted under the Plan prior to 2005 to (i) accelerate to October 1, 2008 the vesting of any outstanding restricted stock granted prior to 2005 (including any restricted stock that a Director may have acquired pursuant to the exercise of options granted prior to 2005), and (ii) eliminate restrictions on shares received upon exercise of outstanding options granted prior to 2005.
 
The Company does not expect to recognize any expense as a result of these amendments.
 
On July 25, 2008, the Company appointed Kent T. Lucien Chief Financial Officer.  Mr. Lucien has served as Chief Financial Officer on an interim basis since April 2008.  In connection with the appointment of Mr. Lucien as Chief Financial Officer, the Human Resources and Compensation Committee approved a restricted stock grant award of 7,500 shares of Bank of Hawaii Corporation common stock under the Bank of Hawaii Corporation 2004 Stock and Incentive Plan.
 
2

 
Item 9.01.                    Financial Statements and Exhibits
 
(d)                 Exhibits
 
Exhibit No.	 	 	
 	 	 	
10.1	 	Board Resolution for Amendment to Restricted Stock and Option Awards under the Director Stock Compensation Program.	
 	 	 	
99.1	 	July 28, 2008 Press Release	

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.

Date:  July 28, 2008	BANK OF HAWAII CORPORATION	

 	By:	/s/ Mark A. Rossi	
 	 	Mark A. Rossi	
 	 	Vice Chairman and Corporate Secretary	
 
3

Exhibit 10.1
 
RESOLUTION OF
THE BOARD OF DIRECTORS
OF
BANK OF HAWAII CORPORATION
 
WHEREAS, Bank of Hawaii Corporation (the “Company”) maintains the Bank of Hawaii Corporation Amended and Restated Director Stock Compensation Plan (including any predecessor plan, the “ Plan ”);
 
WHEREAS, the Board has determined that it is desirable to amend the terms of restricted stock awards granted under the Plan prior to the Company’s 2005 annual meeting of shareholders that are outstanding as of October 1, 2008 (“ Restricted Stock ”), including Restricted Stock issued upon the exercise of stock options granted under the Plan prior to the Company’s 2005 annual meeting of shareholders (“ Options ”), so that all such Restricted Stock, to the extent it has not previously vested, becomes fully vested on October 1, 2008; and
 
WHEREAS, the Board has further determined that it is desirable to amend the terms of any Options that are outstanding as of October 1, 2008 so that fully vested shares (rather than shares of restricted stock) are issued upon the exercise of such Options;
 
NOW THEREFORE, BE IT:
 
RESOLVED, that the officers of the Company be, and each of them hereby is, authorized and empowered to enter into, in the name and on behalf of the Company, amendment agreements with each member of the Board who wishes to do so and who holds shares of Restricted Stock and/or Options to provide that, notwithstanding anything to the contrary in the applicable award agreements:
 
1.             The “Restriction Period” (as defined in the applicable award agreement) applicable to Restricted Stock (including any Restricted Stock acquired pursuant to the exercise of Options) shall, to the extent it has not previously terminated, terminate on October 1, 2008.
 
2.             Effective October 1, 2008, no “Restriction Period” shall apply to any shares theretofore or thereafter issued upon the exercise of any Option.
 
3.             Notwithstanding the provisions of items 1 and 2 above, to the extent the terms of a Restricted Stock or Option award would result in the lapsing of restrictions or the acceleration of vesting (as applicable) on an earlier date than the date provided in such provisions, such restrictions shall lapse on, or such vesting shall accelerate to, such earlier date instead.

 
FURTHER RESOLVED, that the Plan (including the Company’s Director Stock Compensation Program of which the Plan is a successor) shall be deemed to be, and hereby is, amended to the extent necessary to effectuate the amendments to outstanding award agreements authorized by the foregoing resolution.
 
FURTHER RESOLVED, that the officers of the Company be, and each of them individually hereby is, authorized and empowered, in the name and on behalf of the Company, to take such actions, and to execute and deliver any and all agreements, instruments and other documents, that such officer or officers deems necessary, appropriate or convenient to effectuate the purpose and intent of the foregoing resolutions.

Exhibit 99.1
 
 	NYSE: BOH	
 
 	Media Inquiries	 	
 	 	 	 	
 	Stafford Kiguchi	 	 	 	
 	Telephone: 808-694-8580	 	 	 	 	
 	Mobile: 808-265-6367	 	 	 	 	
 	E-mail: Stafford.Kiguchi@boh.com	 	 	 	 	
 	 	 	 	 	 	
 	Investor/Analyst Inquiries	 	 	 	 	
 	 	 	 	 	 	
 	Cindy Wyrick	 	 	 	 	
 	Telephone: 808-694-8430	 	 	 	 	
 	E-mail: Cindy.Wyrick@boh.com	 	 	 	 	
 
Bank of Hawaii Corporation Second Quarter 2008 Financial Results
 
·     Diluted Earnings Per Share $1.00
·     Net Income for the Quarter $48.3 Million
·     Board of Directors Declares Dividend of $0.44 Per Share
 
FOR IMMEDIATE RELEASE
 
HONOLULU, HI (July 28, 2008) — Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $1.00 for the second quarter of 2008, an increase of $0.05 or 5.3 percent from diluted earnings per share of $0.95 in the same quarter last year.  Net income for the second quarter of 2008 was $48.3 million, up $0.6 million or 1.2 percent from net income of $47.7 million in the second quarter of 2007.
 
The return on average assets for the second quarter of 2008 was 1.85 percent, up from 1.84 percent during the same quarter last year.  The return on average equity for the second quarter of 2008 was 24.82 percent compared to 26.30 percent for the second quarter of 2007.  The efficiency ratio for the second quarter of 2008 was 50.01 percent compared to 50.88 percent in the second quarter last year.
 
“Financial performance for Bank of Hawaii Corporation during the first half of 2008 continued to be strong,” said Allan R. Landon, Chairman and CEO.  “Our net interest margin expanded, noninterest revenue improved and core expenses remain controlled.  Asset quality remained solid and net charge-offs decreased from the previous quarter.  We further strengthened our reserves as higher oil prices increase the risk in our legacy air transportation leasing portfolio.  We are maintaining our disciplined approach to credit and balance sheet management as the Hawaii economy slows.”
 
For the six months ended June 30, 2008, net income was $105.5 million, up $10.4 million compared to net income of $95.1 million for the same period last year.  Diluted earnings per share were $2.18 for the first half of 2008, up from diluted earnings per share of $1.89 for the first half of 2007.  Results for 2008 include $25.3 million from the redemption of Visa shares and a lessee’s early buy-out of an aircraft lease, which were recorded in the first quarter of 2008.  Partially offsetting these gains were expenses for employee incentives, legal contingencies, a call premium
 
- more -
 
130 Merchant Street · PO Box 2900 · Honolulu HI 96846-6000 · Fax 808-537-8440 · Website www.boh.com

 
on Capital Securities, an increase in the allowance for loan and lease losses, and contributions to the Bank of Hawaii Charitable Foundation.  The net effect was an increase in net income for 2008 of $9.5 million or $0.20 per diluted share.  Details of these items are included in Table 2.   Financial results for the first half of 2007 included a $1.5 million credit related to resolution with the Internal Revenue Service of a Lease In/Lease Out (“LILO”) leveraged lease.
 
The year-to-date return on average assets was 2.01 percent, up from 1.84 percent for the same six months in 2007.  The year-to-date return on average equity was 27.33 percent, up from 26.64 percent for the six months ended June 30, 2007.  The efficiency ratio for the first half of 2008 was 49.80 percent, down from 51.25 percent in the same period last year.  Adjusted for the income and expense items previously discussed, the efficiency ratio for the first half of 2008 was 50.51 percent.
 
Financial Highlights
 
Net interest income, on a taxable equivalent basis, for the second quarter of 2008 was $107.4 million, up $8.3 million from net interest income of $99.1 million in the second quarter of 2007 and up $5.0 million from net interest income of $102.4 million in the first quarter of 2008.  Net interest income in the second quarter of 2007 included a $1.1 million credit related to the previously mentioned settlement of the LILO leveraged lease.  For the six-month period ended June 30, 2008, net interest income, on a taxable equivalent basis, was $209.8 million compared to $197.5 million for the same period in 2007.  Analyses of the changes in net interest income are included in Tables 7a, 7b and 7c.
 
The net interest margin was 4.41 percent for the second quarter of 2008, a 29 basis point increase from 4.12 percent in the second quarter of 2007 and a 24 basis point increase from 4.17 percent in the first quarter of 2008.   For the six months ended June 30, 2008, the net interest margin was 4.29 percent compared to 4.09 percent for the same six months in 2007.  The increase in the net interest margin was primarily due to lower funding costs in 2008.
 
Results for the second quarter of 2008 included a provision for credit losses of $7.2 million compared with $3.4 million in the second quarter of 2007 and $14.4 million in the first quarter of 2008.  The provision for credit losses exceeded net charge-offs of $4.7 million by $2.5 million in the second quarter of 2008.  The provision for credit losses equaled net charge-offs in the second quarter of last year and exceeded net charge-offs by $9.0 million in the first quarter of 2008.
 
Noninterest income was $60.5 million for the second quarter of 2008, an increase of $2.5 million compared to $58.0 million in the second quarter of 2007 and a decrease of $25.6 million compared to $86.1 million in the first quarter of 2008.  Noninterest income in the first quarter of 2008 included the previously mentioned gains of $25.3 million related to the Visa share redemption and the disposition of an aircraft lease.
 
Noninterest expense was $83.9 million in the second quarter of 2008, up $4.0 million from noninterest expense of $79.8 million in the same quarter last year and down $9.6 million from $93.4 million in the previous quarter.  Noninterest expense in the first quarter of 2008 included a reversal of $5.6 million related to Visa litigation, accruals of $9.0 million for employee incentives, $3.0 million for legal contingencies, $2.3 million for charitable contributions, $1.0 million for the call premium, and $0.6 million for separation costs.  Adjusted for these items, noninterest expense was $83.2 million in the first quarter of 2008.  An analysis of salary and benefit expenses is included in Table 8.
 
2

 
The effective tax rate for the second quarter of 2008 was 37.03 percent compared to 35.25 percent during the same quarter last year and 28.88 percent in the previous quarter.  The lower effective tax rate in the first quarter of 2008 was primarily due to the disposition of an aircraft lease.  The effective tax rate for the second quarter of 2007 included a $0.4 million net credit due to the previously mentioned IRS tax settlement.
 
The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury.  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 12a and 12b.
 
Asset Quality
 
The Company’s overall asset quality remained solid during the three months ended June 30, 2008 with low levels of non-performing assets and a reduction in accruing loans and leases past due 90 days or more.
 
Non-accrual loans and leases were $6.5 million at June 30, 2008, up from $6.3 million at June 30, 2007 and up from $5.8 million at March 31, 2008.  As a percentage of total loans and leases, non-accrual loans at June 30, 2008 of 0.10 percent remain near historic lows.
 
Total non-performing assets were $6.7 million at the end of the second quarter of 2008, up from $6.3 million at the end of the same quarter last year and up from $6.0 million at the end of the previous quarter.  The ratio of non-performing assets to total loans and foreclosed real estate at June 30, 2008 was 0.10 percent, unchanged from June 30, 2007 and up from 0.09 percent at March 31, 2008.
 
Accruing loans and leases past due 90 days or more were $4.2 million at June 30, 2008, up from $1.4 million at June 30, 2007 and down from $5.8 million at March 31, 2008. The ratio of total non-performing assets and loans 90 days or more past due to total loans at June 30, 2008 was 0.17 percent, up from 0.12 percent at June 30, 2007 and down from 0.18 percent at March 31, 2008.  Details of non-performing assets and accruing loans and leases past due 90 days or more are summarized in Table 10.
 
Net charge-offs during the second quarter of 2008 were $4.7 million or 0.29 percent annualized of total average loans and leases.  Net charge-offs increased $1.3 million compared to $3.4 million, or 0.21 percent annualized, during the same quarter last year and were down $0.8 million compared to $5.4 million, or 0.33 percent annualized, in the previous quarter.  The decrease compared to the previous quarter was largely due to lower charge-offs in the indirect automobile and unsecured consumer installment portfolios.  Net charge-offs for the six months ended June 30, 2008 were $10.1 million, or 0.31 percent annualized of total average loans and leases compared to $6.0 million, or 0.18 percent annualized of total average loans and leases for the same period last year.  Net charge-offs for the first six months of 2007 included a partial recovery of $2.1 million on an aircraft lease, which was charged off in 2005.
 
The allowance for loan and lease losses increased to $102.5 million at June 30, 2008, up from $91.0 million at June 30, 2007 and up from $100.0 million at March 31, 2008.  The ratio of the allowance for loan and lease losses to total loans was 1.57 percent at June 30, 2008, an increase from 1.39 percent at June 30, 2007 and from 1.52 percent at March 31, 2008.  The increase in the
 
3

 
allowance for loan and lease losses from March 31, 2008 reflects elevated risk in the Company’s air transportation exposure due to the unprecedented rise in oil prices.  The reserve for unfunded commitments at June 30, 2008 was $5.2 million, unchanged from June 30, 2007 and from March 31, 2008.  Details of charge-offs, recoveries and the components of the total reserve for credit losses are summarized in Table 11.
 
Other Financial Highlights
 
Total assets were $10.37 billion at June 30, 2008, down $351 million from $10.72 billion at June 30, 2007 and down $452 million from $10.82 billion at March 31, 2008.  The decrease compared with the previous quarters was largely due to a reduction in funds sold.
 
Total loans and leases were $6.52 billion at June 30, 2008, down $48 million from $6.57 billion at June 30, 2007 and down $61 million from $6.58 billion at March 31, 2008.  Average loans and leases were $6.53 billion during the second quarter of 2008, essentially unchanged from the second quarter last year and down $56 million from $6.59 billion during the previous quarter.
 
Total commercial loans were $2.37 billion at June 30, 2008, down $53 million from $2.43 billion at June 30, 2007 and down $14 million from $2.39 billion at March 31, 2008.  The decrease was largely due to a reduction in construction lending.  Construction loans were $169 million at June 30, 2008, down $93 million from $261 million at June 30, 2007 and down $22 million from $191 million at March 31, 2008.
 
Total consumer loans were $4.14 billion at June 30, 2008, essentially unchanged from June 30, 2007 and down $48 million from $4.19 billion at March 31, 2008.  The decrease compared with the previous quarter was largely due to a reduction in residential first mortgages, automobile loans and unsecured consumer installment loans.  Loan and lease portfolio balances are summarized in Table 9.
 
Total deposits were $7.90 billion at June 30, 2008, down $410 million from $8.31 billion at June 30, 2007 and down $199 million from $8.10 billion at March 31, 2008.  Total deposits decreased near the end of the second quarter largely due to the release of escrow deposits following completion of a large construction project.  Average deposits were $7.96 billion during the second quarter of 2008, up $148 million from $7.81 billion during the second quarter last year and up $6 million from $7.95 billion during the previous quarter.
 
During the second quarter of 2008, the Company repurchased 220.0 thousand shares of common stock at a total cost of $11.4 million under its share repurchase program.  The average cost was $51.70 per share repurchased.  From the beginning of the share repurchase program in July 2001 through June 30, 2008, the Company had repurchased 45.2 million shares and returned nearly $1.6 billion to shareholders at an average cost of $35.35 per share.  From July 1, 2008 through July 25, 2008, the Company repurchased an additional 181.0 thousand shares of common stock at an average cost of $45.19 per share.  Remaining buyback authority under the share repurchase program was $43.4 million at July 25, 2008.
 
On May 15, 2008, the Company exercised its option to call the remaining $26.4 million of Capital Securities, previously qualified as Tier I Capital.  At June 30, 2008, the Tier 1 leverage ratio was 7.04 percent, up slightly from 7.02 percent at June 30, 2007 and up from 6.99 percent at March 31, 2008.
 
4

 
The Company’s Board of Directors declared a quarterly cash dividend of $0.44 per share on the Company’s outstanding shares, consistent with the prior three quarters.  The dividend will be payable on September 15, 2008 to shareholders of record at the close of business on August 29, 2008.
 
Hawaii Economy
 
During the second quarter of 2008, Hawaii’s economic activity slowed.  The State’s unemployment rate increased to 3.5 percent, still among the lowest in the United States.  Visitor arrivals during April and May decreased approximately 7.0 percent, largely due to the shutdown of two airlines and reduced cruise ship activity.  Single-family home prices were down slightly on Oahu and showed further decline on Neighbor Islands.  Oahu home prices during the quarter averaged 4.4 percent below prices one year ago and were essentially unchanged from the same period in 2006.  Residential and commercial construction appears to be softening.  Inflation in Hawaii likely increased during the quarter because of rising energy and food costs.
 
Conference Call Information
 
The Company will review its second quarter 2008 financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time).  The conference call 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 for participants in the United States is 866-700-5192.  International participants should call 617-213-8833.  No pass code is required.  A replay of the conference call will be available for one week beginning Monday, July 28, 2008 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the pass code number 40631649 when prompted.  A replay will also be available via the Investor Relations link of the Company’s web site.
 
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, 2007, 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 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.
 
# # # #
 
5

 
Bank of Hawaii Corporation and Subsidiaries
Financial Highlights (Unaudited)	 	 	 	 	 	 	 	 	 	Table 1	
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands, except per share amounts)	 	2008	 	2008	 	2007	 	2008	 	2007	 	
For the Period:	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	107,168	 	$	102,180	 	$	98,878	 	$	209,348	 	$	197,015	 	
Total Noninterest Income	 	60,539	 	86,125	 	58,028	 	146,664	 	118,988	 	
Total Noninterest Expense	 	83,862	 	93,432	 	79,832	 	177,294	 	161,955	 	
Net Income	 	48,282	 	57,215	 	47,729	 	105,497	 	95,064	 	
Basic Earnings Per Share	 	1.01	 	1.19	 	0.97	 	2.20	 	1.93	 	
Diluted Earnings Per Share	 	1.00	 	1.18	 	0.95	 	2.18	 	1.89	 	
Dividends Declared Per Share	 	0.44	 	0.44	 	0.41	 	0.88	 	0.82	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Net Income to Average Total Assets	 	1.85%	 	2.16%	 	1.84%	 	2.01%	 	1.84%	 	
Net Income to Average Shareholders’ Equity	 	24.82	 	29.88	 	26.30	 	27.33	 	26.64	 	
Efficiency Ratio1	 	50.01	 	49.62	 	50.88	 	49.80	 	51.25	 	
Operating Leverage2	 	(11.62	)	40.13	 	0.13	 	16.01	 	3.90	 	
Net Interest Margin3	 	4.41	 	4.17	 	4.12	 	4.29	 	4.09	 	
Dividend Payout Ratio4	 	43.56	 	36.97	 	42.27	 	40.00	 	42.49	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases	 	$	6,531,587	 	$	6,587,918	 	$	6,532,736	 	$	6,559,753	 	$	6,547,212	 	
Average Assets	 	10,504,421	 	10,643,904	 	10,383,030	 	10,574,162	 	10,432,130	 	
Average Deposits	 	7,958,171	 	7,952,546	 	7,810,089	 	7,955,360	 	7,865,469	 	
Average Shareholders’ Equity	 	782,429	 	770,157	 	727,887	 	776,293	 	719,549	 	
Average Shareholders’ Equity to Average Assets	 	7.45%	 	7.24%	 	7.01%	 	7.34%	 	6.90%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Market Price Per Share of Common Stock:	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Closing	 	$	47.80	 	$	49.56	 	$	51.64	 	$	47.80	 	$	51.64	 	
High	 	57.37	 	52.93	 	55.00	 	57.37	 	55.00	 	
Low	 	46.62	 	40.95	 	50.64	 	40.95	 	50.11	 	
 
 	 	 	 	June 30,	 	March 31,	 	December 31,	 	June 30,	 	
 	 	 	 	2008	 	2008	 	2007	 	2007	 	
As of Period End:	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	 	 	$	6,518,128	 	$	6,579,337	 	$	6,580,861	 	$	6,566,126	 	
Total Assets	 	 	 	10,371,149	 	10,822,801	 	10,472,942	 	10,722,568	 	
Total Deposits	 	 	 	7,903,990	 	8,102,855	 	7,942,372	 	8,314,404	 	
Long-Term Debt	 	 	 	205,351	 	239,389	 	235,371	 	260,329	 	
Total Shareholders’ Equity	 	 	 	767,558	 	766,747	 	750,255	 	708,806	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Non-Performing Assets	 	 	 	$	6,680	 	$	6,045	 	$	5,286	 	$	6,314	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Allowance to Loans and Leases Outstanding	 	 	 	1.57%	 	1.52%	 	1.38%	 	1.39%	 	
Leverage Ratio	 	 	 	7.04	 	6.99	 	7.04	 	7.02	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Book Value Per Common Share	 	 	 	$	16.01	 	$	15.98	 	$	15.44	 	$	14.34	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Full-Time Equivalent Employees	 	 	 	2,534	 	2,538	 	2,594	 	2,571	 	
Branches and Offices	 	 	 	84	 	83	 	83	 	83	 	
 
1   Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
2   Operating leverage is defined as the percentage change in income before the provision for credit losses and the provision for income taxes.  Measures are presented on a linked quarter basis.
3   Net interest margin is defined as net interest income, on a taxable equivalent basis, as a percentage of average earning assets.
4   Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.

 
Bank of Hawaii Corporation and Subsidiaries
Net Significant Income Items (Unaudited)	 	Table 2	
 	 	Three Months Ended	 	
 	 	March 31,	 	
(dollars in thousands)	 	2008	 	
Gain on Mandatory Redemption of Visa Shares	 	$	13,737	 	
Gain on Disposal of Leased Equipment	 	11,588	 	
Increase in Allowance for Loan and Lease Losses	 	(9,000	)	
Cash for Stock Grants	 	(4,640	)	
Employee Incentive Awards	 	(4,386	)	
Legal Contingencies	 	(3,016	)	
Bank of Hawaii Charitable Foundation and Other Contributions	 	(2,250	)	
Call Premium on Capital Securities	 	(991	)	
Separation Expense	 	(615	)	
Reversal of Visa Legal Costs	 	5,649	 	
Significant Income Items Before the Benefit for Income Taxes	 	6,076	 	
Benefit for Income Taxes	 	(3,381	)	
Net Significant Income Items	 	$	9,457	 	

 
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)	Table 3	
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands, except per share amounts)	 	2008	 	2008	 	2007	 	2008	 	2007	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	97,959	 	$	104,413	 	$	112,026	 	$	202,372	 	$	222,324	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	1,209	 	1,160	 	1,357	 	2,369	 	2,975	 	
Available-for-Sale	 	35,321	 	34,251	 	31,563	 	69,572	 	62,524	 	
Held-to-Maturity	 	3,033	 	3,239	 	3,827	 	6,272	 	7,879	 	
Deposits	 	204	 	195	 	96	 	399	 	154	 	
Funds Sold	 	420	 	992	 	533	 	1,412	 	1,591	 	
Other	 	489	 	426	 	364	 	915	 	697	 	
Total Interest Income	 	138,635	 	144,676	 	149,766	 	283,311	 	298,144	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	20,238	 	27,465	 	33,701	 	47,703	 	67,076	 	
Securities Sold Under Agreements to Repurchase	 	7,488	 	10,617	 	11,665	 	18,105	 	23,551	 	
Funds Purchased	 	270	 	633	 	1,452	 	903	 	2,375	 	
Short-Term Borrowings	 	12	 	34	 	91	 	46	 	178	 	
Long-Term Debt	 	3,459	 	3,747	 	3,979	 	7,206	 	7,949	 	
Total Interest Expense	 	31,467	 	42,496	 	50,888	 	73,963	 	101,129	 	
Net Interest Income	 	107,168	 	102,180	 	98,878	 	209,348	 	197,015	 	
Provision for Credit Losses	 	7,172	 	14,427	 	3,363	 	21,599	 	5,994	 	
Net Interest Income After Provision for Credit Losses	 	99,996	 	87,753	 	95,515	 	187,749	 	191,021	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	15,460	 	15,086	 	16,135	 	30,546	 	31,968	 	
Mortgage Banking	 	2,738	 	4,297	 	2,479	 	7,035	 	5,850	 	
Service Charges on Deposit Accounts	 	12,411	 	12,083	 	11,072	 	24,494	 	22,039	 	
Fees, Exchange, and Other Service Charges	 	17,176	 	16,101	 	16,556	 	33,277	 	32,617	 	
Investment Securities Gains, Net	 	157	 	130	 	575	 	287	 	591	 	
Insurance	 	5,590	 	7,130	 	4,887	 	12,720	 	11,102	 	
Other	 	7,007	 	31,298	 	6,324	 	38,305	 	14,821	 	
Total Noninterest Income	 	60,539	 	86,125	 	58,028	 	146,664	 	118,988	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	45,984	 	55,473	 	44,587	 	101,457	 	89,993	 	
Net Occupancy	 	11,343	 	10,443	 	9,695	 	21,786	 	19,506	 	
Net Equipment	 	4,474	 	4,321	 	4,871	 	8,795	 	9,658	 	
Professional Fees	 	2,588	 	2,613	 	2,599	 	5,201	 	5,142	 	
Other	 	19,473	 	20,582	 	18,080	 	40,055	 	37,656	 	
Total Noninterest Expense	 	83,862	 	93,432	 	79,832	 	177,294	 	161,955	 	
Income Before Provision for Income Taxes	 	76,673	 	80,446	 	73,711	 	157,119	 	148,054	 	
Provision for Income Taxes	 	28,391	 	23,231	 	25,982	 	51,622	 	52,990	 	
Net Income	 	$	48,282	 	$	57,215	 	$	47,729	 	$	105,497	 	$	95,064	 	
Basic Earnings Per Share	 	$	1.01	 	$	1.19	 	$	0.97	 	$	2.20	 	$	1.93	 	
Diluted Earnings Per Share	 	$	1.00	 	$	1.18	 	$	0.95	 	$	2.18	 	$	1.89	 	
Dividends Declared Per Share	 	$	0.44	 	$	0.44	 	$	0.41	 	$	0.88	 	$	0.82	 	
Basic Weighted Average Shares	 	47,733,278	 	47,965,722	 	49,276,820	 	47,849,945	 	49,351,959	 	
Diluted Weighted Average Shares	 	48,300,049	 	48,628,427	 	50,077,219	 	48,423,619	 	50,173,856	 	

 
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition (Unaudited)	 	Table 4	
 	 	June 30,	 	March 31,	 	December 31,	 	June 30,	 	
(dollars in thousands)	 	2008	 	2008	 	2007	 	2007	 	
Assets	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	6,056	 	$	55,916	 	$	4,870	 	$	130,732	 	
Funds Sold	 	-    	 	240,000	 	15,000	 	200,000	 	
Investment Securities	 	 	 	 	 	 	 	 	 	
Trading	 	94,347	 	99,966	 	67,286	 	123,591	 	
Available-for-Sale	 	2,646,506	 	2,672,286	 	2,563,190	 	2,455,668	 	
Held-to-Maturity (Fair Value of $255,905; $277,536; $287,644; and $313,589)	 	260,592	 	277,256	 	292,577	 	327,118	 	
Loans Held for Sale	 	11,183	 	13,096	 	12,341	 	13,527	 	
Loans and Leases	 	6,518,128	 	6,579,337	 	6,580,861	 	6,566,126	 	
Allowance for Loan and Lease Losses	 	(102,498	)	(99,998	)	(90,998	)	(90,998	)	
Net Loans and Leases	 	6,415,630	 	6,479,339	 	6,489,863	 	6,475,128	 	
Total Earning Assets	 	9,434,314	 	9,837,859	 	9,445,127	 	9,725,764	 	
Cash and Noninterest-Bearing Deposits	 	280,635	 	314,863	 	368,402	 	345,226	 	
Premises and Equipment	 	117,323	 	116,683	 	117,177	 	122,929	 	
Customers’ Acceptances	 	1,856	 	992	 	1,112	 	2,234	 	
Accrued Interest Receivable	 	42,295	 	46,316	 	45,261	 	49,121	 	
Foreclosed Real Estate	 	229	 	294	 	184	 	48	 	
Mortgage Servicing Rights	 	30,272	 	27,149	 	27,588	 	29,112	 	
Goodwill	 	34,959	 	34,959	 	34,959	 	34,959	 	
Other Assets	 	429,266	 	443,686	 	433,132	 	413,175	 	
Total Assets	 	$	10,371,149	 	$	10,822,801	 	$	10,472,942	 	$	10,722,568	 	
 	 	 	 	 	 	 	 	 	 	
Liabilities	 	 	 	 	 	 	 	 	 	
Deposits	 	 	 	 	 	 	 	 	 	
Noninterest-Bearing Demand	 	$	1,876,782	 	$	2,000,226	 	$	1,935,639	 	$	1,896,335	 	
Interest-Bearing Demand	 	1,666,726	 	1,649,705	 	1,634,675	 	1,755,646	 	
Savings	 	2,781,082	 	2,728,873	 	2,630,471	 	2,923,168	 	
Time	 	1,579,400	 	1,724,051	 	1,741,587	 	1,739,255	 	
Total Deposits	 	7,903,990	 	8,102,855	 	7,942,372	 	8,314,404	 	
Funds Purchased	 	69,400	 	23,800	 	75,400	 	90,650	 	
Short-Term Borrowings	 	10,180	 	9,726	 	10,427	 	15,644	 	
Securities Sold Under Agreements to Repurchase	 	1,028,518	 	1,231,962	 	1,029,340	 	910,302	 	
Long-Term Debt (includes $121,326 and $128,932 carried at fair value as of June 30, 2008 and March 31, 2008, respectively)	 	205,351	 	239,389	 	235,371	 	260,329	 	
Banker’s Acceptances	 	1,856	 	992	 	1,112	 	2,234	 	
Retirement Benefits Payable	 	29,478	 	29,755	 	29,984	 	43,892	 	
Accrued Interest Payable	 	13,588	 	18,322	 	20,476	 	18,292	 	
Taxes Payable and Deferred Taxes	 	250,125	 	300,188	 	278,218	 	277,516	 	
Other Liabilities	 	91,105	 	99,065	 	99,987	 	80,499	 	
Total Liabilities	 	9,603,591	 	10,056,054	 	9,722,687	 	10,013,762	 	
Shareholders’ Equity	 	 	 	 	 	 	 	 	 	
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 2008 - 57,016,182 / 47,941,409; March 2008 - 56,995,352 / 47,990,432; December 2007 - 56,995,447 / 48,589,645; and June 2007 - 56,927,022 / 49,440,204)	 	568	 	568	 	567	 	566	 	
Capital Surplus	 	489,335	 	487,139	 	484,790	 	480,389	 	
Accumulated Other Comprehensive Income (Loss)	 	(15,813	)	5,553	 	(5,091	)	(45,705	)	
Retained Earnings	 	745,244	 	720,540	 	688,638	 	645,149	 	
Treasury Stock, at Cost (Shares: June 2008 - 9,074,773; March 2008 - 9,004,920; December 2007 - 8,405,802; and June 2007 - 7,486,818)	 	(451,776	)	(447,053	)	(418,649	)	(371,593	)	
Total Shareholders’ Equity	 	767,558	 	766,747	 	750,255	 	708,806	 	
Total Liabilities and Shareholders’ Equity	 	$	10,371,149	 	$	10,822,801	 	$	10,472,942	 	$	10,722,568	 	

 
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders’ Equity (Unaudited)	 	Table 5	
 	 	 	 	 	 	 	 	Accum.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Other	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Compre-	 	 	 	 	 	Compre-	 	
 	 	 	 	Common	 	Capital	 	hensive	 	Retained	 	Treasury	 	hensive	 	
(dollars in thousands)	 	Total	 	Stock	 	Surplus	 	Loss	 	Earnings	 	Stock	 	Income	 	
Balance as of December 31, 2007	 	$	750,255	 	$	567	 	$	484,790	 	$	(5,091	)	$	688,638	 	$	(418,649	)	 	 	
Cumulative-Effect Adjustment of a Change in Accounting Principle, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities, including an amendment of FASB Statement No. 115”	 	(2,736	)	-   	 	-   	 	-   	 	(2,736	)	-   	 	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	105,497	 	-   	 	-   	 	-   	 	105,497	 	-   	 	$	105,497	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	 	(10,820	)	-   	 	-   	 	(10,820	)	-   	 	-   	 	(10,820	)	
Amortization of Net Loss for Pension Plans and Postretirement Benefit Plan	 	98	 	-   	 	-   	 	98	 	-   	 	-   	 	98	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	94,775	 	
Share-Based Compensation	 	3,072	 	-   	 	3,072	 	-   	 	-   	 	-   	 	 	 	
Net Tax Benefits related to Share-Based Compensation	 	1,304	 	-   	 	1,304	 	-   	 	-   	 	-   	 	 	 	
Common Stock Issued under Purchase and Equity Compensation Plans (276,946 shares)	 	8,478	 	1	 	169	 	-   	 	(3,812	)	12,120	 	 	 	
Common Stock Repurchased (923,330 shares)	 	(45,247	)	-   	 	-   	 	-   	 	-   	 	(45,247	)	 	 	
Cash Dividends Paid	 	(42,343	)	-   	 	-   	 	-   	 	(42,343	)	-   	 	 	 	
Balance as of June 30, 2008	 	$	767,558	 	$	568	 	$	489,335	 	$	(15,813	)	$	745,244	 	$	(451,776	)	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance as of December 31, 2006	 	$	719,420	 	$	566	 	$	475,178	 	$	(39,084	)	$	630,660	 	$	(347,900	)	 	 	
Cumulative-Effect Adjustment of a Change in Accounting Principle, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SFAS No. 156, “Accounting for Servicing of Financial Assets, an amendment of FASB Statement No. 140”	 	5,126	 	-   	 	-   	 	5,279	 	(153	)	-   	 	 	 	
FSP No. 13-2, “Accounting for a Change or Projected Change in the Timing of Cash Flows Relating to Income Taxes Generated by a Leveraged Lease Transaction”	 	(27,106	)	-   	 	-   	 	-   	 	(27,106	)	-   	 	 	 	
FIN 48, “Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109”	 	(7,247	)	-   	 	-   	 	-   	 	(7,247	)	-   	 	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	95,064	 	-   	 	-   	 	-   	 	95,064	 	-   	 	$	95,064	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	 	(12,316	)	-   	 	-   	 	(12,316	)	-   	 	-   	 	(12,316	)	
Amortization of Net Loss for Pension Plans and Postretirement Benefit Plan	 	416	 	-   	 	-   	 	416	 	-   	 	-   	 	416	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	83,164	 	
Share-Based Compensation	 	2,748	 	-   	 	2,748	 	-   	 	-   	 	-   	 	 	 	
Net Tax Benefits related to Share-Based Compensation	 	2,208	 	-   	 	2,208	 	-   	 	-   	 	-   	 	 	 	
Common Stock Issued under Purchase and Equity Compensation Plans (444,008 shares)	 	12,407	 	-   	 	255	 	-   	 	(5,312	)	17,464	 	 	 	
Common Stock Repurchased (779,689 shares)	 	(41,157	)	-   	 	-   	 	-   	 	-   	 	(41,157	)	 	 	
Cash Dividends Paid	 	(40,757	)	-   	 	-   	 	-   	 	(40,757	)	-   	 	 	 	
Balance as of June 30, 2007	 	$	708,806	 	$	566	 	$	480,389	 	$	(45,705	)	$	645,149	 	$	(371,593	)	 	 	

 
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable Equivalent Basis (Unaudited)	 	 	 	 	Table 6a	
 	 	Three Months Ended	 	Three Months Ended	 	Three Months Ended	 	
 	 	June 30, 2008	 	March 31, 2008	 	June 30, 2007 1	 	
 	 	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	 	$	33.0	 	$	0.2	 	2.45%	 	$	27.5	 	$	0.2	 	2.82%	 	$	8.0	 	$	0.1	 	4.83%	 	
Funds Sold	 	81.9	 	0.4	 	2.03	 	138.2	 	1.0	 	2.84	 	40.6	 	0.5	 	5.19	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	97.6	 	1.2	 	4.96	 	95.7	 	1.2	 	4.85	 	137.1	 	1.4	 	3.96	 	
Available-for-Sale	 	2,649.9	 	35.6	 	5.37	 	2,631.6	 	34.5	 	5.24	 	2,486.9	 	31.8	 	5.11	 	
Held-to-Maturity	 	269.6	 	3.1	 	4.50	 	285.6	 	3.2	 	4.54	 	339.3	 	3.8	 	4.51	 	
Loans Held for Sale	 	9.3	 	0.1	 	5.78	 	10.5	 	0.1	 	5.43	 	13.6	 	0.2	 	6.34	 	
Loans and Leases2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	1,060.7	 	14.3	 	5.42	 	1,065.1	 	16.6	 	6.26	 	1,053.3	 	19.5	 	7.43	 	
Commercial Mortgage	 	663.0	 	10.1	 	6.15	 	649.1	 	10.4	 	6.45	 	620.0	 	10.6	 	6.85	 	
Construction	 	177.3	 	2.5	 	5.76	 	199.5	 	3.3	 	6.73	 	253.8	 	5.0	 	7.93	 	
Commercial Lease Financing	 	470.6	 	4.1	 	3.50	 	477.9	 	4.0	 	3.35	 	461.3	 	4.4	 	3.77	 	
Residential Mortgage	 	2,509.1	 	38.2	 	6.09	 	2,519.3	 	38.6	 	6.13	 	2,499.5	 	38.3	 	6.12	 	
Home Equity	 	968.7	 	14.1	 	5.86	 	970.8	 	16.0	 	6.61	 	941.4	 	17.9	 	7.62	 	
Automobile	 	423.1	 	8.6	 	8.16	 	438.7	 	8.9	 	8.18	 	424.2	 	8.6	 	8.16	 	
Other3	 	259.1	 	5.9	 	9.11	 	267.4	 	6.5	 	9.73	 	279.2	 	7.5	 	10.83	 	
Total Loans and Leases	 	6,531.6	 	97.8	 	6.01	 	6,587.8	 	104.3	 	6.35	 	6,532.7	 	111.8	 	6.86	 	
Other	 	79.6	 	0.5	 	2.46	 	79.5	 	0.4	 	2.15	 	79.4	 	0.4	 	1.83	 	
Total Earning Assets4	 	9,752.5	 	138.9	 	5.71	 	9,856.4	 	144.9	 	5.89	 	9,637.6	 	150.0	 	6.23	 	
Cash and Noninterest-Bearing Deposits	 	272.9	 	 	 	 	 	294.1	 	 	 	 	 	275.3	 	 	 	 	 	
Other Assets	 	479.0	 	 	 	 	 	493.4	 	 	 	 	 	470.1	 	 	 	 	 	
Total Assets	 	$	10,504.4	 	 	 	 	 	$	10,643.9	 	 	 	 	 	$	10,383.0	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,617.0	 	1.2	 	0.29	 	$	1,614.3	 	2.3	 	0.57	 	$	1,581.0	 	4.1	 	1.03	 	
Savings	 	2,805.5	 	6.5	 	0.94	 	2,691.8	 	9.2	 	1.38	 	2,627.8	 	12.6	 	1.93	 	
Time	 	1,646.5	 	12.5	 	3.07	 	1,747.2	 	16.0	 	3.67	 	1,707.9	 	17.0	 	3.99	 	
Total Interest-Bearing Deposits	 	6,069.0	 	20.2	 	1.34	 	6,053.3	 	27.5	 	1.82	 	5,916.7	 	33.7	 	2.28	 	
Short-Term Borrowings	 	61.2	 	0.3	 	1.82	 	79.7	 	0.7	 	3.31	 	116.9	 	1.5	 	5.23	 	
Securities Sold Under Agreements to Repurchase	 	1,060.2	 	7.5	 	2.81	 	1,164.2	 	10.6	 	3.63	 	1,040.6	 	11.7	 	4.46	 	
Long-Term Debt	 	224.3	 	3.5	 	6.18	 	239.8	 	3.7	 	6.26	 	260.3	 	4.0	 	6.12	 	
Total Interest-Bearing Liabilities	 	7,414.7	 	31.5	 	1.70	 	7,537.0	 	42.5	 	2.26	 	7,334.5	 	50.9	 	2.78	 	
Net Interest Income	 	 	 	$	107.4	 	 	 	 	 	$	102.4	 	 	 	 	 	$	99.1	 	 	 	
Interest Rate Spread	 	 	 	 	 	4.01%	 	 	 	 	 	3.63%	 	 	 	 	 	3.45%	 	
Net Interest Margin	 	 	 	 	 	4.41%	 	 	 	 	 	4.17%	 	 	 	 	 	4.12%	 	
Noninterest-Bearing Demand Deposits	 	1,889.2	 	 	 	 	 	1,899.2	 	 	 	 	 	1,893.4	 	 	 	 	 	
Other Liabilities	 	418.1	 	 	 	 	 	437.5	 	 	 	 	 	427.2	 	 	 	 	 	
Shareholders’ Equity	 	782.4	 	 	 	 	 	770.2	 	 	 	 	 	727.9	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	10,504.4	 	 	 	 	 	$	10,643.9	 	 	 	 	 	$	10,383.0	 	 	 	 	 	
 
1  Certain prior period information has been reclassified to conform to current presentation.
2  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.
3  Comprised of other consumer revolving credit, installment, and consumer lease financing.
4  Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $239,000 $238,000, and $236,000 for the three months ended June 30, 2008.
March 31, 2008, and June 30, 2007, respectively.

 
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable Equivalent Basis (Unaudited)	 	 	 	Table 6b	
 	 	Six Months Ended	 	Six Months Ended	 	
 	 	June 30, 2008	 	June 30, 2007 1	 	
 	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	
(dollars in millions)	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	30.2	 	$	0.4	 	2.62%	 	$	6.3	 	$	0.2	 	4.89%	 	
Funds Sold	 	110.1	 	1.4	 	2.54	 	60.8	 	1.6	 	5.20	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	96.7	 	2.4	 	4.90	 	149.5	 	3.0	 	3.98	 	
Available-for-Sale	 	2,640.8	 	70.0	 	5.31	 	2,470.1	 	62.9	 	5.10	 	
Held-to-Maturity	 	277.5	 	6.3	 	4.52	 	350.1	 	7.9	 	4.50	 	
Loans Held for Sale	 	9.9	 	0.3	 	5.59	 	10.5	 	0.3	 	6.27	 	
Loans and Leases2	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	1,062.9	 	30.9	 	5.84	 	1,064.6	 	39.3	 	7.44	 	
Commercial Mortgage	 	656.0	 	20.5	 	6.30	 	618.3	 	20.9	 	6.82	 	
Construction	 	188.5	 	5.9	 	6.27	 	249.7	 	9.8	 	7.95	 	
Commercial Lease Financing	 	474.2	 	8.1	 	3.43	 	461.8	 	7.5	 	3.23	 	
Residential Mortgage	 	2,514.2	 	76.8	 	6.11	 	2,497.9	 	76.5	 	6.12	 	
Home Equity	 	969.8	 	30.1	 	6.24	 	941.8	 	35.6	 	7.62	 	
Automobile	 	430.9	 	17.5	 	8.17	 	425.3	 	17.1	 	8.12	 	
Other3	 	263.3	 	12.3	 	9.43	 	287.8	 	15.3	 	10.75	 	
Total Loans and Leases	 	6,559.8	 	202.1	 	6.18	 	6,547.2	 	222.0	 	6.82	 	
Other	 	79.5	 	0.9	 	2.30	 	79.4	 	0.7	 	1.76	 	
Total Earning Assets4	 	9,804.5	 	283.8	 	5.80	 	9,673.9	 	298.6	 	6.20	 	
Cash and Noninterest-Bearing Deposits	 	283.5	 	 	 	 	 	292.8	 	 	 	 	 	
Other Assets	 	486.2	 	 	 	 	 	465.4	 	 	 	 	 	
Total Assets	 	$	10,574.2	 	 	 	 	 	$	10,432.1	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,615.7	 	3.4	 	0.43	 	$	1,591.7	 	8.3	 	1.05	 	
Savings	 	2,748.6	 	15.8	 	1.15	 	2,633.8	 	25.1	 	1.92	 	
Time	 	1,696.9	 	28.5	 	3.38	 	1,719.9	 	33.7	 	3.94	 	
Total Interest-Bearing Deposits	 	6,061.2	 	47.7	 	1.58	 	5,945.4	 	67.1	 	2.28	 	
Short-Term Borrowings	 	70.4	 	1.0	 	2.67	 	98.4	 	2.6	 	5.17	 	
Securities Sold Under Agreements to Repurchase	 	1,112.2	 	18.1	 	3.24	 	1,055.1	 	23.5	 	4.46	 	
Long-Term Debt	 	232.0	 	7.2	 	6.22	 	260.3	 	7.9	 	6.12	 	
Total Interest-Bearing Liabilities	 	7,475.8	 	74.0	 	1.98	 	7,359.2	 	101.1	 	2.76	 	
Net Interest Income	 	 	 	$	209.8	 	 	 	 	 	$	197.5	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.82%	 	 	 	 	 	3.44%	 	
Net Interest Margin	 	 	 	 	 	4.29%	 	 	 	 	 	4.09%	 	
Noninterest-Bearing Demand Deposits	 	1,894.2	 	 	 	 	 	1,920.1	 	 	 	 	 	
Other Liabilities	 	427.9	 	 	 	 	 	433.3	 	 	 	 	 	
Shareholders’ Equity	 	776.3	 	 	 	 	 	719.5	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	10,574.2	 	 	 	 	 	$	10,432.1	 	 	 	 	 	
 
1  Certain prior period information has been reclassified to conform to current presentation.
2  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.
3  Comprised of other consumer revolving credit, installment, and consumer lease financing.
4  Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $477,000 and $449,000 for the six months ended  June 30, 2008 and 2007, respectively.

 
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable Equivalent Basis (Unaudited)	 	Table 7a	
 	 	Three Months Ended June 30, 2008	
 	 	Compared to March 31, 2008	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Total	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	(0.4	)	$	(0.2	)	$	(0.6	)	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	0.3	 	0.8	 	1.1	 	
Held-to-Maturity	 	(0.1	)	-	 	(0.1	)	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	(0.1	)	(2.2	)	(2.3	)	
Commercial Mortgage	 	0.2	 	(0.5	)	(0.3	)	
Construction	 	(0.3	)	(0.5	)	(0.8	)	
Commercial Lease Financing	 	(0.1	)	0.2	 	0.1	 	
Residential Mortgage	 	(0.1	)	(0.3	)	(0.4	)	
Home Equity	 	(0.1	)	(1.8	)	(1.9	)	
Automobile	 	(0.3	)	-	 	(0.3	)	
Other2	 	(0.2	)	(0.4	)	(0.6	)	
Total Loans and Leases	 	(1.0	)	(5.5	)	(6.5	)	
Other	 	-	 	0.1	 	0.1	 	
Total Change in Interest Income	 	(1.2	)	(4.8	)	(6.0	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	-	 	(1.1	)	(1.1	)	
Savings	 	0.4	 	(3.1	)	(2.7	)	
Time	 	(1.0	)	(2.5	)	(3.5	)	
Total Interest-Bearing Deposits	 	(0.6	)	(6.7	)	(7.3	)	
Short-Term Borrowings	 	(0.1	)	(0.3	)	(0.4	)	
Securities Sold Under Agreements to Repurchase	 	(0.9	)	(2.2	)	(3.1	)	
Long-Term Debt	 	(0.2	)	-	 	(0.2	)	
Total Change in Interest Expense	 	(1.8	)	(9.2	)	(11.0	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	0.6	 	$	4.4	 	$	5.0	 	
 
1  The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume and rate for that category.
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 (Unaudited)	 	Table 7b	
 	 	Three Months Ended June 30, 2008	
 	 	Compared to June 30, 2007	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Total	
Change in Interest Income:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	0.2	 	$	(0.1	)	$	0.1	 	
Funds Sold	 	0.3	 	(0.4	)	(0.1	)	
Investment Securities	 	 	 	 	 	 	 	
Trading	 	(0.5	)	0.3	 	(0.2	)	
Available-for-Sale	 	2.2	 	1.6	 	3.8	 	
Held-to-Maturity	 	(0.7	)	-	 	(0.7	)	
Loans Held for Sale	 	(0.1	)	-	 	(0.1	)	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	0.1	 	(5.3	)	(5.2	)	
Commercial Mortgage	 	0.7	 	(1.2	)	(0.5	)	
Construction	 	(1.3	)	(1.2	)	(2.5	)	
Commercial Lease Financing	 	-	 	(0.3	)	(0.3	)	
Residential Mortgage	 	0.1	 	(0.2	)	(0.1	)	
Home Equity	 	0.5	 	(4.3	)	(3.8	)	
Other2	 	(0.5	)	(1.1	)	(1.6	)	
Total Loans and Leases	 	(0.4	)	(13.6	)	(14.0	)	
Other	 	-	 	0.1	 	0.1	 	
Total Change in Interest Income	 	1.0	 	(12.1	)	(11.1	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	0.1	 	(3.0	)	(2.9	)	
Savings	 	0.8	 	(6.9	)	(6.1	)	
Time	 	(0.6	)	(3.9	)	(4.5	)	
Total Interest-Bearing Deposits	 	0.3	 	(13.8	)	(13.5	)	
Short-Term Borrowings	 	(0.5	)	(0.7	)	(1.2	)	
Securities Sold Under Agreements to Repurchase	 	0.2	 	(4.4	)	(4.2	)	
Long-Term Debt	 	(0.6	)	0.1	 	(0.5	)	
Total Change in Interest Expense	 	(0.6	)	(18.8	)	(19.4	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	1.6	 	$	6.7	 	$	8.3	 	
 
1  The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume and rate for that category.
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 (Unaudited)	 	Table  7c	
 	 	Six Months Ended June 30, 2008	 	
 	 	Compared to June 30, 2007	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Time 1	 	Total	
Change in Interest Income:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	0.3	 	$	(0.1	)	$	-	 	$	0.2	 	
Funds Sold	 	0.9	 	(1.1	)	-	 	(0.2	)	
Investment Securities	 	 	 	 	 	 	 	 	 	
Trading	 	(1.2	)	0.6	 	-	 	(0.6	)	
Available-for-Sale	 	4.4	 	2.7	 	-	 	7.1	 	
Held-to-Maturity	 	(1.6	)	-	 	-	 	(1.6	)	
Loans and Leases	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(0.1	)	(8.5	)	0.2	 	(8.4	)	
Commercial Mortgage	 	1.2	 	(1.7	)	0.1	 	(0.4	)	
Construction	 	(2.1	)	(1.9	)	0.1	 	(3.9	)	
Commercial Lease Financing	 	0.2	 	0.4	 	-	 	0.6	 	
Residential Mortgage	 	0.5	 	(0.2	)	-	 	0.3	 	
Home Equity	 	1.0	 	(6.7	)	0.2	 	(5.5	)	
Automobile	 	0.2	 	0.1	 	0.1	 	0.4	 	
Other2	 	(1.3	)	(1.8	)	0.1	 	(3.0	)	
Total Loans and Leases	 	(0.4	)	(20.3	)	0.8	 	(19.9	)	
Other	 	-	 	0.2	 	-	 	0.2	 	
Total Change in Interest Income	 	2.4	 	(18.0	)	0.8	 	(14.8	)	
 	 	 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	
Demand	 	0.1	 	(5.1	)	0.1	 	(4.9	)	
Savings	 	1.1	 	(10.5	)	0.1	 	(9.3	)	
Time	 	(0.4	)	(5.0	)	0.2	 	(5.2	)	
Total Interest-Bearing Deposits	 	0.8	 	(20.6	)	0.4	 	(19.4	)	
Short-Term Borrowings	 	(0.6	)	(1.0	)	-	 	(1.6	)	
Securities Sold Under Agreements to Repurchase	 	1.2	 	(6.7	)	0.1	 	(5.4	)	
Long-Term Debt	 	(0.9	)	0.2	 	-	 	(0.7	)	
Total Change in Interest Expense	 	0.5	 	(28.1	)	0.5	 	(27.1	)	
 	 	 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	1.9	 	$	10.1	 	$	0.3	 	$	12.3	 	
 
1 The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume, rate, and time for that category.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.

 
Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits (Unaudited)	 	 	 	 	 	 	 	 	 	Table 8	
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands)	 	2008	 	2008	 	2007	 	2008	 	2007	 	
Salaries	 	$	30,019	 	$	28,903	 	$	29,220	 	$	58,922	 	$	57,344	 	
Incentive Compensation	 	4,122	 	6,267	 	3,794	 	10,389	 	7,413	 	
Cash for Stock Grants	 	-	 	4,640	 	-	 	4,640	 	-	 	
Share-Based Compensation	 	1,124	 	1,648	 	1,333	 	2,772	 	2,560	 	
Commission Expense	 	1,992	 	1,873	 	2,161	 	3,865	 	4,154	 	
Retirement and Other Benefits	 	3,499	 	5,226	 	3,365	 	8,725	 	7,134	 	
Payroll Taxes	 	2,491	 	3,414	 	2,247	 	5,905	 	5,769	 	
Medical, Dental, and Life Insurance	 	2,470	 	2,499	 	2,263	 	4,969	 	4,501	 	
Separation Expense	 	267	 	1,003	 	204	 	1,270	 	1,118	 	
Total Salaries and Benefits	 	$	45,984	 	$	55,473	 	$	44,587	 	$	101,457	 	$	89,993	 	

 
Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances (Unaudited)	 	 	 	 	 	Table 9	
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands)	 	2008	 	2008	 	2007 1	 	2007 1	 	2007 1	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	1,052,319	 	$	1,079,772	 	$	1,054,355	 	$	1,065,258	 	$	1,065,155	 	
Commercial Mortgage	 	680,784	 	650,638	 	634,483	 	627,329	 	619,668	 	
Construction	 	168,678	 	190,521	 	208,670	 	254,062	 	261,478	 	
Lease Financing	 	471,443	 	465,945	 	481,882	 	478,988	 	480,358	 	
Total Commercial	 	2,373,224	 	2,386,876	 	2,379,390	 	2,425,637	 	2,426,659	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	2,509,133	 	2,530,207	 	2,508,261	 	2,510,313	 	2,505,073	 	
Home Equity	 	966,108	 	967,146	 	972,995	 	953,713	 	938,261	 	
Automobile	 	413,338	 	430,920	 	443,011	 	440,525	 	425,672	 	
Other2	 	256,325	 	264,188	 	277,204	 	269,727	 	270,461	 	
Total Consumer	 	4,144,904	 	4,192,461	 	4,201,471	 	4,174,278	 	4,139,467	 	
Total Loans and Leases	 	$	6,518,128	 	$	6,579,337	 	$	6,580,861	 	$	6,599,915	 	$	6,566,126	 	
 
Air Transportation Credit Exposure3 (Unaudited)	 	 	 	 	 	 	 	
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands)	 	2008	 	2008	 	2007	 	2007	 	2007	 	
Passenger Carriers Based In the United States	 	$	60,603	 	$	61,190	 	$	64,947	 	$	64,867	 	$	65,607	 	
Passenger Carriers Based Outside the United States	 	7,161	 	7,258	 	19,078	 	19,162	 	19,246	 	
Cargo Carriers	 	13,568	 	13,472	 	13,390	 	13,326	 	13,279	 	
Total Air Transportation Credit Exposure	 	$	81,332	 	$	81,920	 	$	97,415	 	$	97,355	 	$	98,132	 	
 
1  Certain prior period information has been reclassified to conform to current presentation.
2  Comprised of other revolving credit, installment, and lease financing.
3  Exposure includes loans, leveraged leases and operating leases.

 
Bank of Hawaii Corporation and Subsidiaries	 	
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More (Unaudited)	Table 10	
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands)	 	2008	 	2008	 	20071	 	20071	 	20071	 	
Non-Performing Assets	 	 	 	 	 	 	 	 	 	 	 	
Non-Accrual Loans and Leases	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	1,119	 	$	794	 	$	598	 	$	359	 	$	265	 	
Commercial Mortgage	 	-    	 	-    	 	112	 	123	 	130	 	
Lease Financing	 	329	 	504	 	297	 	-    	 	914	 	
Total Commercial	 	1,448	 	1,298	 	1,007	 	482	 	1,309	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	3,784	 	3,235	 	2,681	 	3,237	 	3,844	 	
Home Equity	 	1,189	 	1,187	 	1,414	 	436	 	899	 	
Other2	 	30	 	31	 	-    	 	-    	 	214	 	
Total Consumer	 	5,003	 	4,453	 	4,095	 	3,673	 	4,957	 	
Total Non-Accrual Loans and Leases	 	6,451	 	5,751	 	5,102	 	4,155	 	6,266	 	
Foreclosed Real Estate	 	229	 	294	 	184	 	105	 	48	 	
Total Non-Performing Assets	 	$	6,680	 	$	6,045	 	$	5,286	 	$	4,260	 	$	6,314	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Accruing Loans and Leases Past Due 90 Days or More	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	-    	 	$	24	 	$	-    	 	$	-    	 	$	-    	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	2,601	 	3,892	 	4,884	 	639	 	188	 	
Home Equity	 	201	 	328	 	413	 	115	 	60	 	
Automobile	 	625	 	865	 	1,174	 	734	 	397	 	
Other2	 	756	 	725	 	1,112	 	944	 	761	 	
Total Consumer	 	4,183	 	5,810	 	7,583	 	2,432	 	1,406	 	
Total Accruing Loans and Leases Past Due 90 Days or More	 	$	4,183	 	$	5,834	 	$	7,583	 	$	2,432	 	$	1,406	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Loans and Leases	 	$	6,518,128	 	$	6,579,337	 	$	6,580,861	 	$	6,599,915	 	$	6,566,126	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	 	0.10%	 	0.09%	 	0.08%	 	0.06%	 	0.10%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate	 	0.10%	 	0.09%	 	0.08%	 	0.06%	 	0.10%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases	 	0.06%	 	0.05%	 	0.04%	 	0.02%	 	0.05%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Foreclosed Real Estate	 	0.13%	 	0.11%	 	0.10%	 	0.09%	 	0.12%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases	 	0.17%	 	0.18%	 	0.20%	 	0.10%	 	0.12%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Quarter to Quarter Changes in Non-Performing Assets Balance at Beginning of Quarter	 	$	6,045	 	$	5,286	 	$	4,260	 	$	6,314	 	$	5,836	 	
Additions	 	2,900	 	2,614	 	1,866	 	662	 	2,279	 	
Reductions	 	 	 	 	 	 	 	 	 	 	 	
Payments	 	(630	)	(386	)	(256	)	(1,741	)	(804	)	
Return to Accrual Status	 	(943	)	(944	)	(214	)	(787	)	(473	)	
Sales of Foreclosed Real Estate	 	-    	 	-    	 	(161	)	(48	)	(326	)	
Charge-offs / Write-downs	 	(692	)	(525	)	(209	)	(140	)	(198	)	
Total Reductions	 	(2,265	)	(1,855	)	(840	)	(2,716	)	(1,801	)	
Balance at End of Quarter	 	$	6,680	 	$	6,045	 	$	5,286	 	$	4,260	 	$	6,314	 	

1  Certain prior period information has been reclassified to conform to current presentation.
2  Comprised of other revolving credit, installment, and lease financing.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Reserve for Credit Losses (Unaudited)	Table 11	
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands)	 	2008	 	2008	 	20071	 	2008	 	20071	 	
Balance at Beginning of Period	 	$	105,167	 	$	96,167	 	$	96,167	 	$	96,167	 	$	96,167	 	
Loans and Leases Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(1,396	)	(1,389	)	(738	)	(2,785	)	(1,543	)	
Lease Financing	 	(142	)	(134	)	-    	 	(276	)	(22	)	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	(133	)	-    	 	(47	)	(133	)	(47	)	
Home Equity	 	(473	)	(806	)	(240	)	(1,279	)	(342	)	
Automobile	 	(2,187	)	(2,915	)	(2,346	)	(5,102	)	(5,428	)	
Other2	 	(1,954	)	(2,803	)	(1,849	)	(4,757	)	(4,481	)	
Total Loans and Leases Charged-Off	 	(6,285	)	(8,047	)	(5,220	)	(14,332	)	(11,863	)	
Recoveries on Loans and Leases Previously Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	201	 	986	 	315	 	1,187	 	592	 	
Commercial Mortgage	 	-    	 	-    	 	36	 	-    	 	121	 	
Lease Financing	 	2	 	3	 	6	 	5	 	2,087	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	17	 	78	 	54	 	95	 	189	 	
Home Equity	 	26	 	21	 	55	 	47	 	120	 	
Automobile	 	700	 	796	 	713	 	1,496	 	1,384	 	
Other2	 	667	 	736	 	678	 	1,403	 	1,376	 	
Total Recoveries on Loans and Leases Previously Charged-Off	 	1,613	 	2,620	 	1,857	 	4,233	 	5,869	 	
Net Loans and Leases Charged-Off	 	(4,672	)	(5,427	)	(3,363	)	(10,099	)	(5,994	)	
Provision for Credit Losses	 	7,172	 	14,427	 	3,363	 	21,599	 	5,994	 	
Balance at End of Period3	 	$	107,667	 	$	105,167	 	$	96,167	 	$	107,667	 	$	96,167	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Components	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	102,498	 	$	99,998	 	$	90,998	 	$	102,498	 	$	90,998	 	
Reserve for Unfunded Commitments	 	5,169	 	5,169	 	5,169	 	5,169	 	5,169	 	
Total Reserve for Credit Losses	 	$	107,667	 	$	105,167	 	$	96,167	 	$	107,667	 	$	96,167	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases Outstanding	 	$	6,531,587	 	$	6,587,918	 	$	6,532,736	 	$	6,559,753	 	$	6,547,212	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)	 	0.29%	 	0.33%	 	0.21%	 	0.31%	 	0.18%	 	
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding	 	1.57%	 	1.52%	 	1.39%	 	1.57%	 	1.39%	 	
 
1  Certain prior period information has been reclassified to conform to current presentation.
2  Comprised of other revolving credit, installment, and lease financing.
3  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 (Unaudited).

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Business Segments Selected Financial Information (Unaudited)	 	Table 12a	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	Commercial	 	Investment	 	 	 	 	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	Total	 	Treasury	 	Total	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended June 30, 2008	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	59,555	 	$	43,264	 	$	3,938	 	$	106,757	 	$	411	 	$	107,168	 	
Provision for Credit Losses	 	2,571	 	4,652	 	(1	)	7,222	 	(50	)	7,172	 	
Net Interest Income After Provision for Credit Losses	 	56,984	 	38,612	 	3,939	 	99,535	 	461	 	99,996	 	
Noninterest Income	 	27,270	 	9,997	 	19,019	 	56,286	 	4,253	 	60,539	 	
Noninterest Expense	 	(43,335	)	(23,544	)	(16,363	)	(83,242	)	(620	)	(83,862	)	
Income Before Provision for Income Taxes	 	40,919	 	25,065	 	6,595	 	72,579	 	4,094	 	76,673	 	
Provision for Income Taxes	 	(15,140	)	(9,286	)	(2,440	)	(26,866	)	(1,525	)	(28,391	)	
Allocated Net Income	 	25,779	 	15,779	 	4,155	 	45,713	 	2,569	 	48,282	 	
Allowance Funding Value	 	(221	)	(865	)	(14	)	(1,100	)	1,100	 	-    	 	
Provision for Credit Losses	 	2,571	 	4,652	 	(1	)	7,222	 	(50	)	7,172	 	
Economic Provision	 	(1,945	)	(3,257	)	(82	)	(5,284	)	(1	)	(5,285	)	
Tax Effect of Adjustments	 	(150	)	(196	)	36	 	(310	)	(387	)	(697	)	
Income Before Capital Charge	 	26,034	 	16,113	 	4,094	 	46,241	 	3,231	 	49,472	 	
Capital Charge	 	(4,749	)	(4,036	)	(1,444	)	(10,229	)	(9,328	)	(19,557	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	21,285	 	$	12,077	 	$	2,650	 	$	36,012	 	$	(6,097	)	$	29,915	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	55%	 	40%	 	28%	 	45%	 	19%	 	25%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets as of June 30, 2008	 	$	3,649,376	 	$	2,998,013	 	$	242,443	 	$	6,889,832	 	$	3,481,317	 	$	10,371,149	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended June 30, 2007 1	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income (Loss)	 	$	55,606	 	$	40,668	 	$	3,466	 	$	99,740	 	$	(862	)	$	98,878	 	
Provision for Credit Losses	 	1,258	 	2,115	 	-    	 	3,373	 	(10	)	3,363	 	
Net Interest Income (Loss) After Provision for Credit Losses	 	54,348	 	38,553	 	3,466	 	96,367	 	(852	)	95,515	 	
Noninterest Income	 	26,790	 	8,033	 	19,454	 	54,277	 	3,751	 	58,028	 	
Noninterest Expense	 	(41,109	)	(22,318	)	(15,519	)	(78,946	)	(886	)	(79,832	)	
Income Before Provision for Income Taxes	 	40,029	 	24,268	 	7,401	 	71,698	 	2,013	 	73,711	 	
Provision for Income Taxes	 	(14,812	)	(9,061	)	(2,738	)	(26,611	)	629	 	(25,982	)	
Allocated Net Income	 	25,217	 	15,207	 	4,663	 	45,087	 	2,642	 	47,729	 	
Allowance Funding Value	 	(155	)	(824	)	(10	)	(989	)	989	 	-    	 	
Provision for Credit Losses	 	1,258	 	2,115	 	-    	 	3,373	 	(10	)	3,363	 	
Economic Provision	 	(1,823	)	(3,167	)	(83	)	(5,073	)	-    	 	(5,073	)	
Tax Effect of Adjustments	 	266	 	694	 	34	 	994	 	(361	)	633	 	
Income Before Capital Charge	 	24,763	 	14,025	 	4,604	 	43,392	 	3,260	 	46,652	 	
Capital Charge	 	(5,083	)	(4,356	)	(1,529	)	(10,968	)	(9,047	)	(20,015	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	19,680	 	$	9,669	 	$	3,075	 	$	32,424	 	$	(5,787	)	$	26,637	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	54%	 	36%	 	33%	 	44%	 	11%	 	26%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets as of June 30, 2007  1	 	$	3,638,207	 	$	3,108,240	 	$	230,134	 	$	6,976,581	 	$	3,745,987	 	$	10,722,568	 	
 
1  Certain prior period information has been reclassified to conform to current presentation.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	 	
Business Segments Selected Financial Information (Unaudited)	 	Table 12b	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	Commercial	 	Investment	 	 	 	 	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	Total	 	Treasury	 	Total	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Six Months Ended June 30, 2008	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income (Loss)	 	$	117,979	 	$	86,099	 	$	7,808	 	$	211,886	 	$	(2,538	)	$	209,348	 	
Provision for Credit Losses	 	10,523	 	11,878	 	(1	)	22,400	 	(801	)	21,599	 	
Net Interest Income (Loss) After Provision for Credit Losses	 	107,456	 	74,221	 	7,809	 	189,486	 	(1,737	)	187,749	 	
Noninterest Income	 	55,817	 	32,246	 	37,280	 	125,343	 	21,321	 	146,664	 	
Noninterest Expense	 	(87,104	)	(48,265	)	(33,226	)	(168,595	)	(8,699	)	(177,294	)	
Income Before Provision for Income Taxes	 	76,169	 	58,202	 	11,863	 	146,234	 	10,885	 	157,119	 	
Provision for Income Taxes	 	(28,182	)	(21,587	)	(4,389	)	(54,158	)	2,536	 	(51,622	)	
Allocated Net Income	 	47,987	 	36,615	 	7,474	 	92,076	 	13,421	 	105,497	 	
Allowance Funding Value	 	(397	)	(1,710	)	(27	)	(2,134	)	2,134	 	-    	 	
Provision for Credit Losses	 	10,523	 	11,878	 	(1	)	22,400	 	(801	)	21,599	 	
Economic Provision	 	(4,088	)	(6,492	)	(165	)	(10,745	)	(1	)	(10,746	)	
Tax Effect of Adjustments	 	(2,234	)	(1,360	)	71	 	(3,523	)	(492	)	(4,015	)	
Income Before Capital Charge	 	51,791	 	38,931	 	7,352	 	98,074	 	14,261	 	112,335	 	
Capital Charge	 	(9,528	)	(8,133	)	(2,919	)	(20,580	)	(18,285	)	(38,865	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	42,263	 	$	30,798	 	$	4,433	 	$	77,494	 	$	(4,024	)	$	73,470	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	55%	 	48%	 	25%	 	48%	 	38%	 	27%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets as of June 30, 2008	 	$	3,649,376	 	$	2,998,013	 	$	242,443	 	$	6,889,832	 	$	3,481,317	 	$	10,371,149	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Six Months Ended June 30, 2007 1	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	110,025	 	$	79,698	 	$	6,991	 	$	196,714	 	$	301	 	$	197,015	 	
Provision for Credit Losses	 	2,803	 	3,213	 	-    	 	6,016	 	(22	)	5,994	 	
Net Interest Income After Provision for Credit Losses	 	107,222	 	76,485	 	6,991	 	190,698	 	323	 	191,021	 	
Noninterest Income	 	52,370	 	20,246	 	38,601	 	111,217	 	7,771	 	118,988	 	
Noninterest Expense	 	(82,443	)	(45,238	)	(31,202	)	(158,883	)	(3,072	)	(161,955	)	
Income Before Provision for Income Taxes	 	77,149	 	51,493	 	14,390	 	143,032	 	5,022	 	148,054	 	
Provision for Income Taxes	 	(28,539	)	(18,935	)	(5,324	)	(52,798	)	(192	)	(52,990	)	
Allocated Net Income	 	48,610	 	32,558	 	9,066	 	90,234	 	4,830	 	95,064	 	
Allowance Funding Value	 	(300	)	(1,582	)	(20	)	(1,902	)	1,902	 	-    	 	
Provision for Credit Losses	 	2,803	 	3,213	 	-    	 	6,016	 	(22	)	5,994	 	
Economic Provision	 	(3,692	)	(6,441	)	(164	)	(10,297	)	(1	)	(10,298	)	
Tax Effect of Adjustments	 	440	 	1,780	 	68	 	2,288	 	(697	)	1,591	 	
Income Before Capital Charge	 	47,861	 	29,528	 	8,950	 	86,339	 	6,012	 	92,351	 	
Capital Charge	 	(10,167	)	(8,835	)	(3,062	)	(22,064	)	(17,506	)	(39,570	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	37,694	 	$	20,693	 	$	5,888	 	$	64,275	 	$	(11,494	)	$	52,781	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	52%	 	37%	 	32%	 	43%	 	9%	 	27%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets as of June 30, 2007  1	 	$	3,638,207	 	$	3,108,240	 	$	230,134	 	$	6,976,581	 	$	3,745,987	 	$	10,722,568	 	
 
1  Certain prior period information has been reclassified to conform to current presentation.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	 	
Selected Quarterly Financial Data (Unaudited)	 	Table 13	
 	 	Three Months Ended	 	
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands, except per share amounts)	 	2008	 	2008	 	2007	 	2007	 	2007	 	
Quarterly Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	97,959	 	$	104,413	 	$	111,270	 	$	112,787	 	$	112,026	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	1,209	 	1,160	 	814	 	1,114	 	1,357	 	
Available-for-Sale	 	35,321	 	34,251	 	33,591	 	33,486	 	31,563	 	
Held-to-Maturity	 	3,033	 	3,239	 	3,440	 	3,616	 	3,827	 	
Deposits	 	204	 	195	 	309	 	1,086	 	96	 	
Funds Sold	 	420	 	992	 	356	 	1,103	 	533	 	
Other	 	489	 	426	 	395	 	364	 	364	 	
Total Interest Income	 	138,635	 	144,676	 	150,175	 	153,556	 	149,766	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	20,238	 	27,465	 	33,158	 	37,613	 	33,701	 	
Securities Sold Under Agreements to Repurchase	 	7,488	 	10,617	 	11,754	 	11,726	 	11,665	 	
Funds Purchased	 	270	 	633	 	1,936	 	1,654	 	1,452	 	
Short-Term Borrowings	 	12	 	34	 	91	 	87	 	91	 	
Long-Term Debt	 	3,459	 	3,747	 	3,789	 	3,920	 	3,979	 	
Total Interest Expense	 	31,467	 	42,496	 	50,728	 	55,000	 	50,888	 	
Net Interest Income	 	107,168	 	102,180	 	99,447	 	98,556	 	98,878	 	
Provision for Credit Losses	 	7,172	 	14,427	 	5,443	 	4,070	 	3,363	 	
Net Interest Income After Provision for Credit Losses	 	99,996	 	87,753	 	94,004	 	94,486	 	95,515	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	15,460	 	15,086	 	15,812	 	15,146	 	16,135	 	
Mortgage Banking	 	2,738	 	4,297	 	2,027	 	3,848	 	2,479	 	
Service Charges on Deposit Accounts	 	12,411	 	12,083	 	12,302	 	11,919	 	11,072	 	
Fees, Exchange, and Other Service Charges	 	17,176	 	16,101	 	16,743	 	16,465	 	16,556	 	
Investment Securities Gains, Net	 	157	 	130	 	105	 	789	 	575	 	
Insurance	 	5,590	 	7,130	 	4,629	 	7,446	 	4,887	 	
Other	 	7,007	 	31,298	 	8,639	 	5,629	 	6,324	 	
Total Noninterest Income	 	60,539	 	86,125	 	60,257	 	61,242	 	58,028	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	45,984	 	55,473	 	45,928	 	44,944	 	44,587	 	
Net Occupancy	 	11,343	 	10,443	 	10,300	 	10,267	 	9,695	 	
Net Equipment	 	4,474	 	4,321	 	4,745	 	4,871	 	4,871	 	
Professional Fees	 	2,588	 	2,613	 	3,695	 	2,369	 	2,599	 	
Other	 	19,473	 	20,582	 	27,334	 	18,999	 	18,080	 	
Total Noninterest Expense	 	83,862	 	93,432	 	92,002	 	81,450	 	79,832	 	
Income Before Provision for Income Taxes	 	76,673	 	80,446	 	62,259	 	74,278	 	73,711	 	
Provision for Income Taxes	 	28,391	 	23,231	 	21,399	 	26,499	 	25,982	 	
Net Income	 	$	48,282	 	$	57,215	 	$	40,860	 	$	47,779	 	$	47,729	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Basic Earnings Per Share	 	$1.01	 	$1.19	 	$0.84	 	$0.98	 	$0.97	 	
Diluted Earnings Per Share	 	$1.00	 	$1.18	 	$0.83	 	$0.96	 	$0.95	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Total Assets	 	$	10,371,149	 	$	10,822,801	 	$	10,472,942	 	$	10,549,595	 	$	10,722,568	 	
Loans and Leases	 	6,518,128	 	6,579,337	 	6,580,861	 	6,599,915	 	6,566,126	 	
Total Deposits	 	7,903,990	 	8,102,855	 	7,942,372	 	7,875,166	 	8,314,404	 	
Total Shareholders’ Equity	 	767,558	 	766,747	 	750,255	 	731,697	 	708,806	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Net Income to Average Total Assets	 	1.85%	 	2.16%	 	1.55%	 	1.79%	 	1.84%	 	
Net Income to Average Shareholders’ Equity	 	24.82	 	29.88	 	21.51	 	26.02	 	26.30	 	
Efficiency Ratio1	 	50.01	 	49.62	 	57.61	 	50.97	 	50.88	 	
Net Interest Margin2	 	4.41	 	4.17	 	4.12	 	4.03	 	4.12	 	
 
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 fully-taxable equivalent basis, as a percentage of average earning assets.