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) January 25, 2010
 
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 January 25, 2010, Bank of Hawaii Corporation announced its results of operations for the quarter ending December 31, 2009.  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
 
(d)          Exhibits
 
Exhibit No.	 	 	
 	 	 	
99.1	 	January 25, 2010 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: January 25, 2010	BANK OF HAWAII CORPORATION	

 	By:	/s/ Mark A. Rossi	
 	 	Mark A. Rossi	
 	 	Vice Chairman and Corporate Secretary	
 
2

Exhibit 99.1
 
 	News Release	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 2009 Financial Results
 
·                 2009 Diluted Earnings Per Share $3.00
·                 2009 Net Income $144.0 Million
·                 Diluted Earnings Per Share for the Fourth Quarter of 2009 $0.84
·                 Net Income for the Fourth Quarter of 2009 $40.5 Million
·                 Board of Directors Declares Dividend of $0.45 Per Share
 
FOR IMMEDIATE RELEASE
 
HONOLULU, HI (January 25, 2010) — Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.84 for the fourth quarter of 2009, up from $0.76 per diluted share in the previous quarter, and higher than the $0.82 per diluted share for the same quarter last year.  Net income in the fourth quarter of 2009 was $40.5 million, up from net income of $36.5 million in the third quarter of 2009, and higher than net income of $39.3 million in the fourth quarter last year.  The return on average assets for the fourth quarter of 2009 was 1.31 percent and the return on average equity for the quarter was 16.91 percent.
 
“Bank of Hawaii Corporation finished 2009 with solid financial performance.  We continue to maintain a strong balance sheet,” said Allan R. Landon, Chairman, and CEO.  “We repositioned our investment portfolio recognizing gains and reducing risk while maintaining high levels of liquidity, reserves, and capital .  Bank of Hawaii is well positioned to meet the needs of our marketplace.”
 
Diluted earnings per share were $3.00 for the full year of 2009 compared with diluted earnings per share of $3.99 in 2008.  Net income for the year was $144.0 million compared with net income of $192.2 million in the previous year.  The return on average assets in 2009 was 1.22 percent, down from 1.84 percent in 2008.  The return on average equity for the year was 16.42 percent, down from 24.54 percent in 2008, partially the result of higher capital levels.
 
Financial Highlights
 
Net interest income, on a taxable equivalent basis, for the fourth quarter of 2009 was $103.8 million, down $5.4 million from net interest income of $109.2 million in the third quarter of 2009 and down $2.3 million from net interest income of $106.1 million in the fourth quarter of 2008.  Net interest income, on a taxable equivalent basis, for the full year of 2009 was $413.5 million, down $6.2 million from net interest income of $419.7 million in 2008.  Analyses of changes in net interest income are included in Tables 7a, 7b and 7c.
 
130 Merchant Street· PO Box 2900· Honolulu HI 96846-6000· Fax 808-694-8440· Website www.boh.com
 
- more -

 
Bank of Hawaii Corporation 2009 Financial Results
 
The net interest margin was 3.57 percent for the fourth quarter of 2009, a 28 basis point decrease from the previous quarter and an 86 basis point decrease from the same quarter last year. The net interest margin for the full year of 2009 was 3.72 percent, a 61 basis point decrease from 4.33 percent in 2008.  The reduction in the net interest margin was largely the result of lower interest rates and the Company’s strategy to limit interest rate risk on new investment securities.
 
Results for the fourth quarter of 2009 included a provision for credit losses of $26.8 million compared to $27.5 million in the third quarter of 2009 and $18.6 million in the fourth quarter of 2008.  The provision for credit losses exceeded net charge-offs in the fourth quarter of 2009 by $1.0 million.  Provision expense exceeded net charge-offs by $5.2 million in the third quarter of 2009 and by $8.0 million in the fourth quarter of 2008.  The provision for credit losses for the full year of 2009 was $107.9 million compared to $60.5 million in 2008.
 
Noninterest income was $80.8 million for the fourth quarter of 2009, an increase of $24.0 million compared to $56.8 million in the third quarter of 2009 and up $26.3 million compared to $54.5 million in the fourth quarter of 2008.  The increase compared to the previous quarters was largely due to net gains of $25.7 million on sales of investment securities, including a complete liquidation of the remaining private label mortgage securities.  Noninterest income for the full year of 2009 was $267.8 million, up $9.7 million or 3.8 percent from noninterest income of $258.1 million in 2008.
 
Noninterest expense was $88.5 million in the fourth quarter of 2009, up $4.5 million from noninterest expense of $84.0 million in the third quarter of 2009, and up $5.8 million compared with $82.7 million in the same quarter last year.  Noninterest expense in the fourth quarter of 2009 included $4.1 million for grants to employees for the purchase of company stock, $2.0 million for employee incentives, and a donation of $1.0 million to the Bank of Hawaii Charitable Foundation.  Full year salaries and benefits expense in 2009 were down $3.4 million or 1.8 percent compared to 2008.  An analysis of salary and benefit expenses is included in Table 8.  Noninterest expense for the full year of 2009 was $350.0 million, up $3.3 million or 0.9 percent from noninterest expense of $346.8 million in 2008.  Excluding FDIC insurance, noninterest expense was down $12.6 million or 3.6 percent.
 
The efficiency ratio for the fourth quarter of 2009 was 48.02 percent, lower than 50.69 percent in the previous quarter, and lower than 51.58 percent in the same quarter last year.  The efficiency ratio for the full year of 2009 of 51.46 percent was relatively unchanged from 51.23 percent during the full year of 2008.
 
The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury & Other.  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
 
Credit quality during the fourth quarter of 2009 continued to reflect a still weakened economy.  Non-performing assets were $48.3 million at December 31, 2009, down slightly from $48.5 million at September 30, 2009, and up from $14.9 million at December 31, 2008.  As a percentage of total loans and leases (including loans held for sale and foreclosed real estate), non-performing assets were 0.84 percent at December 31, 2009.
 
2

 
Bank of Hawaii Corporation 2009 Financial Results
 
Accruing loans and leases past due 90 days or more were $13.7 million at December 31, 2009, up from $12.3 million at September 30, 2009, and down from $14.2 million at December 31, 2008.  The increase in past due residential mortgages was largely related to loans on neighbor island properties.  More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 10.
 
Net charge-offs during the fourth quarter of 2009 were $25.8 million compared with $22.3 million in the third quarter of 2009, and $10.6 million in the fourth quarter last year.  Net charge-offs for the fourth quarter of 2009 included $9.4 million for a leveraged lease related to the bankruptcy filing of an airline company, which was substantially reserved in the fourth quarter of 2008.
 
The allowance for loan and lease losses was $143.7 million at December 31, 2009, up from $142.7 million at September 30, 2009 and $123.5 million at December 31, 2008.  The ratio of the allowance for loan and lease losses to total loans and leases increased to 2.49 percent at December 31, 2009.  The reserve for unfunded commitments at December 31, 2009 was unchanged at $5.4 million.  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 $12.41 billion at December 31, 2009, higher than total assets of $12.21 billion at September 30, 2009, and up from total assets of $10.76 billion at December 31, 2008.  Average total assets were $12.28 billion during the fourth quarter of 2009, higher than average assets of $11.99 billion during the previous quarter, and up from average assets of $10.31 billion during the fourth quarter last year.  Growth in investment securities offset the continued decline in loan balances due to reduced loan demand, payoffs, and loan sales to reduce overall portfolio risk.
 
Total deposits increased to $9.41 billion at December 31, 2009, higher than the $9.25 billion at September 30, 2009, and up from $8.29 billion at December 31, 2008.  Average total deposits were $9.32 billion in the fourth quarter of 2009, higher than average deposits of $9.13 billion during the previous quarter, and up from $7.72 billion during the fourth quarter last year.
 
As a result of the strong deposit growth, the investment portfolio grew to $5.51 billion at year-end, compared to $5.02 billion at September 30, 2009 and $2.85 billion at December 31, 2008.
 
Consistent with the Company’s strategy to build capital levels, no shares were repurchased during 2009.  Remaining buyback authority under the share repurchase program was $85.4 million at December 31, 2009.  Total shareholders’ equity was $896.0 million at December 31, 2009, down slightly from $902.8 million at September 30, 2009 due to a lower level of unrealized gains in the investment portfolio, and up from $790.7 million at December 31, 2008.
 
The ratio of tangible common equity to risk-weighted assets was 15.45 percent at December 31, 2009, up from 14.56 percent at September 30, 2009, and higher than the 11.28 percent at December 31, 2008.  At December 31, 2008, the Tier 1 leverage ratio was 6.78 percent compared to 6.67 percent at September 30, 2009 and 7.30 percent at December 31, 2008.  The decrease in the Tier 1 leverage ratio compared to December 31, 2008 was due to significant growth in investment securities, primarily Ginnie Mae and Treasury securities.
 
The Company’s Board of Directors declared a quarterly cash dividend of $0.45 per share on the Company’s outstanding shares.  The dividend will be payable on March 12, 2010 to shareholders of record at the close of business on February 26, 2010.
 
3

 
Bank of Hawaii Corporation 2009 Financial Results
 
Hawaii Economy
 
Hawaii’s economy during the fourth quarter of 2009 began to reflect some early signs of stabilization; however the slow U. S. and international economic conditions continue to result in weakness in the state.  Visitor arrivals began to recover during the summer months and scheduled air seats for December 2009 through February 2010 are higher compared to a year ago.  Visitor spending remains weak, down 12.8 percent year-to-date through November.  The statewide unemployment rate improved slightly to a seasonally adjusted 6.9 percent in December and remains well below the national average.  Neighbor islands continue to experience higher unemployment than Oahu.  Home sales on Oahu are beginning to improve and months of inventory continue to decline.  More information on Hawaii economic trends is presented in Table 14.
 
Business Outlook
 
During 2010, Bank of Hawaii will continue to focus on maintaining high levels of liquidity, strong capital, and reserves, as well as disciplined lending and investment strategies.  The Bank will maintain an emphasis on improved productivity, technology and service enhancements, as well as management of risk and expenses.  Bank of Hawaii remains committed to producing superior financial performance over time with priority given to soundness and service.
 
Conference Call Information
 
The Company will review its 2009 financial results today at 8:00 a.m. Hawaii Time (1:00 p.m. Eastern Time).  The 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 866-543-6407.  International participants should call 617-213-8898.  Use the pass code “Bank of Hawaii” to access the call.  A replay of the conference call will be available for one week beginning Monday, January 25, 2010 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the number 26440784 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, 2008, which was filed with the U.S. Securities and Exchange Commission.  We do not promise 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.
 
# # # #
 
4

 
Bank of Hawaii Corporation and Subsidiaries	 	
Financial Highlights	Table 1	
 
 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands, except per share amounts)	 	2009	 	2009	 	2008	 	2009	 	2008	 	
For the Period:	 	 	 	 	 	 	 	 	 	 	 	
Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	103,534	 	$	108,887	 	$	105,854	 	$	412,334	 	$	418,777	 	
Provision for Credit Losses	 	26,801	 	27,500	 	18,558	 	107,878	 	60,515	 	
Total Noninterest Income	 	80,811	 	56,800	 	54,463	 	267,808	 	258,113	 	
Total Noninterest Expense	 	88,520	 	83,987	 	82,690	 	350,024	 	346,774	 	
Net Income	 	40,516	 	36,471	 	39,307	 	144,033	 	192,213	 	
Basic Earnings Per Share	 	0.85	 	0.76	 	0.83	 	3.02	 	4.03	 	
Diluted Earnings Per Share	 	0.84	 	0.76	 	0.82	 	3.00	 	3.99	 	
Dividends Declared Per Share	 	0.45	 	0.45	 	0.45	 	1.80	 	1.77	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.31	%	1.21	%	1.52	%	1.22	%	1.84	%	
Return on Average Shareholders’ Equity	 	16.91	 	16.44	 	19.56	 	16.42	 	24.54	 	
Efficiency Ratio (1)	 	48.02	 	50.69	 	51.58	 	51.46	 	51.23	 	
Operating Leverage (2)	 	17.29	 	11.77	 	5.23	 	—	 	10.00	 	
Net Interest Margin (3)	 	3.57	 	3.85	 	4.43	 	3.72	 	4.33	 	
Dividend Payout Ratio (4)	 	52.94	 	59.21	 	54.22	 	59.60	 	43.92	 	
Average Shareholders’ Equity to Average Assets	 	7.74	 	7.34	 	7.76	 	7.44	 	7.50	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Balances	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases	 	$	5,847,820	 	$	6,034,956	 	$	6,537,134	 	$	6,144,976	 	$	6,542,178	 	
Average Assets	 	12,279,458	 	11,988,995	 	10,307,814	 	11,783,404	 	10,448,223	 	
Average Deposits	 	9,322,632	 	9,131,064	 	7,724,309	 	9,108,432	 	7,851,327	 	
Average Shareholders’ Equity	 	950,833	 	880,003	 	799,387	 	877,170	 	783,114	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Market Price Per Share of Common Stock	 	 	 	 	 	 	 	 	 	 	 	
Closing	 	$	47.06	 	$	41.54	 	$	45.17	 	$	47.06	 	$	45.17	 	
High	 	48.14	 	42.92	 	57.81	 	48.14	 	70.00	 	
Low	 	39.43	 	33.65	 	36.32	 	25.33	 	36.32	 	
 
 	 	December 31,	 	September 30,	 	December 31,	 	
 	 	2009	 	2009	 	2008	 	
As of Period End:	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	
Loans and Leases	 	$	5,759,785	 	$	5,931,358	 	$	6,530,233	 	
Total Assets	 	12,414,827	 	12,208,025	 	10,763,475	 	
Total Deposits	 	9,409,676	 	9,250,100	 	8,292,098	 	
Long-Term Debt	 	90,317	 	91,424	 	203,285	 	
Total Shareholders’ Equity	 	895,973	 	902,799	 	790,704	 	
 	 	 	 	 	 	 	 	
Asset Quality	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	143,658	 	$	142,658	 	$	123,498	 	
Non-Performing Assets (5)	 	48,331	 	48,536	 	14,949	 	
 	 	 	 	 	 	 	 	
Financial Ratios	 	 	 	 	 	 	 	
Allowance to Loans and Leases Outstanding	 	2.49	%	2.41	%	1.89	%	
Tier 1 Capital Ratio	 	14.88	 	13.43	 	11.24	 	
Total Capital Ratio	 	16.15	 	14.70	 	12.49	 	
Leverage Ratio	 	6.78	 	6.67	 	7.30	 	
Tangible Common Equity to Total Assets (6)	 	6.96	 	7.11	 	7.01	 	
Tangible Common Equity to Risk-Weighted Assets (6)	 	15.45	 	14.56	 	11.28	 	
 	 	 	 	 	 	 	 	
Non-Financial Data	 	 	 	 	 	 	 	
Full-Time Equivalent Employees	 	2,418	 	2,474	 	2,581	 	
Branches and Offices	 	83	 	85	 	85	 	
ATMs	 	485	 	485	 	462	 	

(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.	
(5)	 	Excluded from non-performing assets are contractually binding non-accrual loans held for sale of $4.2 million and $7.7 million as of December 31, 2009 and September 30, 2009, respectively.	
(6)	 	Tangible common equity, a non-GAAP financial measure, is defined by the Company as shareholders’ equity minus goodwill and intangible assets. Intangible assets are included as a component of other assets in the Consolidated Statements of Condition.	

 

 
Bank of Hawaii Corporation and Subsidiaries	 	
Net Significant Income (Expense) Items	Table 2	
 
 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands)	 	2009	 	2009	 	2008	 	2009	 	2008	 	
Leveraged Lease Residual Value Impairment	 	$	—	 	$	(968	)	$	—	 	$	(968	)	$	—	 	
SILO Leveraged Lease	 	—	 	—	 	—	 	—	 	(3,981	)	
Investment Securities Gains, Net	 	25,707	 	—	 	—	 	25,707	 	—	 	
Gain on Disposal of Leased Equipment	 	977	 	—	 	—	 	13,795	 	11,588	 	
Gain on Sale of Insurance Subsidiary	 	1,511	 	—	 	—	 	2,363	 	—	 	
Gain on Mandatory Redemption of Visa Shares	 	—	 	—	 	—	 	—	 	13,737	 	
Increase in Allowance for Loan and Lease Losses	 	(1,000	)	(5,242	)	(8,000	)	(20,160	)	(32,500	)	
FDIC Special Assessment	 	—	 	—	 	—	 	(5,744	)	—	 	
Market Premium on Repurchased Long-Term Privately Placed Debt	 	—	 	—	 	—	 	(875	)	—	 	
Cash Grants for the Purchase of Company Stock	 	(4,100	)	—	 	—	 	(4,100	)	(4,640	)	
Employee Incentive Awards	 	(2,000	)	—	 	—	 	(2,000	)	(2,000	)	
Legal Contingencies	 	1,152	 	(838	)	—	 	(1,007	)	(2,911	)	
Bank of Hawaii Charitable Foundation and Other Contributions	 	(1,000	)	—	 	—	 	(1,000	)	(2,250	)	
Call Premium on Capital Securities	 	—	 	—	 	—	 	—	 	(991	)	
Separation Expense	 	—	 	—	 	—	 	—	 	(615	)	
Reversal of Visa Legal Costs	 	—	 	—	 	—	 	—	 	5,649	 	
Significant Income (Expense) Items Before the Provision (Benefit) for Income Taxes	 	21,247	 	(7,048	)	(8,000	)	6,011	 	(18,914	)	
Income Taxes Impact Related to Lease Transactions	 	568	 	(373	)	—	 	3,781	 	(14,331	)	
Income Tax Impact	 	7,095	 	(2,128	)	(2,800	)	(2,385	)	(9,291	)	
Net Significant Income (Expense) Items	 	$	13,584	 	$	(4,547	)	$	(5,200	)	$	4,615	 	$	4,708	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	
Consolidated Statements of Income	Table 3	
 
 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands, except per share amounts)	 	2009	 	2009	 	2008 (1)	 	2009	 	2008 (1)	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	77,457	 	$	79,530	 	$	95,598	 	$	326,921	 	$	390,714	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	—	 	—	 	1,152	 	594	 	4,695	 	
Available-for-Sale	 	41,369	 	46,419	 	34,352	 	158,244	 	139,076	 	
Held-to-Maturity	 	2,018	 	2,179	 	2,735	 	9,133	 	11,877	 	
Deposits	 	2	 	3	 	25	 	20	 	457	 	
Funds Sold	 	353	 	320	 	48	 	1,776	 	1,601	 	
Other	 	277	 	277	 	276	 	1,106	 	1,681	 	
Total Interest Income	 	121,476	 	128,728	 	134,186	 	497,794	 	550,101	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	10,317	 	12,235	 	16,960	 	54,058	 	82,399	 	
Securities Sold Under Agreements to Repurchase	 	6,411	 	6,394	 	7,984	 	25,934	 	33,764	 	
Funds Purchased	 	7	 	5	 	175	 	22	 	1,585	 	
Short-Term Borrowings	 	—	 	—	 	103	 	—	 	162	 	
Long-Term Debt	 	1,207	 	1,207	 	3,110	 	5,446	 	13,414	 	
Total Interest Expense	 	17,942	 	19,841	 	28,332	 	85,460	 	131,324	 	
Net Interest Income	 	103,534	 	108,887	 	105,854	 	412,334	 	418,777	 	
Provision for Credit Losses	 	26,801	 	27,500	 	18,558	 	107,878	 	60,515	 	
Net Interest Income After Provision for Credit Losses	 	76,733	 	81,387	 	87,296	 	304,456	 	358,262	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	11,746	 	10,915	 	12,275	 	46,174	 	57,014	 	
Mortgage Banking	 	4,218	 	4,656	 	508	 	22,995	 	8,164	 	
Service Charges on Deposit Accounts	 	14,160	 	14,014	 	13,306	 	54,470	 	50,845	 	
Fees, Exchange, and Other Service Charges	 	14,935	 	14,801	 	14,897	 	60,122	 	61,995	 	
Investment Securities Gains (Losses), Net	 	25,707	 	(5	)	86	 	25,770	 	532	 	
Insurance	 	2,326	 	7,304	 	5,953	 	20,015	 	24,575	 	
Other	 	7,719	 	5,115	 	7,438	 	38,262	 	54,988	 	
Total Noninterest Income	 	80,811	 	56,800	 	54,463	 	267,808	 	258,113	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	50,973	 	46,387	 	43,737	 	188,568	 	191,958	 	
Net Occupancy	 	10,367	 	10,350	 	11,548	 	41,053	 	45,129	 	
Net Equipment	 	4,393	 	4,502	 	4,573	 	17,713	 	18,143	 	
Professional Fees	 	3,243	 	2,642	 	3,040	 	12,439	 	11,511	 	
FDIC Insurance	 	3,251	 	3,290	 	693	 	17,342	 	1,510	 	
Other	 	16,293	 	16,816	 	19,099	 	72,909	 	78,523	 	
Total Noninterest Expense	 	88,520	 	83,987	 	82,690	 	350,024	 	346,774	 	
Income Before Provision for Income Taxes	 	69,024	 	54,200	 	59,069	 	222,240	 	269,601	 	
Provision for Income Taxes	 	28,508	 	17,729	 	19,762	 	78,207	 	77,388	 	
Net Income	 	$	40,516	 	$	36,471	 	$	39,307	 	$	144,033	 	$	192,213	 	
Basic Earnings Per Share	 	$	0.85	 	$	0.76	 	$	0.83	 	$	3.02	 	$	4.03	 	
Diluted Earnings Per Share	 	$	0.84	 	$	0.76	 	$	0.82	 	$	3.00	 	$	3.99	 	
Dividends Declared Per Share	 	$	0.45	 	$	0.45	 	$	0.45	 	$	1.80	 	$	1.77	 	
Basic Weighted Average Shares	 	47,813,490	 	47,745,375	 	47,481,779	 	47,702,500	 	47,674,000	 	
Diluted Weighted Average Shares	 	48,223,406	 	48,045,873	 	47,927,532	 	48,009,277	 	48,200,650	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	
Consolidated Statements of Condition	Table 4	
 
 	 	December 31,	 	September 30,	 	December 31,	 	
(dollars in thousands)	 	2009	 	2009	 	2008	 	
Assets	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	8,755	 	$	5,863	 	$	5,094	 	
Funds Sold	 	291,546	 	401,200	 	405,789	 	
Investment Securities	 	 	 	 	 	 	 	
Trading	 	—	 	—	 	91,500	 	
Available-for-Sale	 	5,330,834	 	4,827,588	 	2,519,239	 	
Held-to-Maturity (Fair Value of $186,668; $201,118; and $242,175)	 	181,018	 	194,444	 	239,635	 	
Loans Held for Sale	 	16,544	 	19,346	 	21,540	 	
Loans and Leases	 	5,759,785	 	5,931,358	 	6,530,233	 	
Allowance for Loan and Lease Losses	 	(143,658	)	(142,658	)	(123,498	)	
Net Loans and Leases	 	5,616,127	 	5,788,700	 	6,406,735	 	
Total Earning Assets	 	11,444,824	 	11,237,141	 	9,689,532	 	
Cash and Noninterest-Bearing Deposits	 	254,766	 	291,480	 	385,599	 	
Premises and Equipment	 	110,976	 	110,173	 	116,120	 	
Customers’ Acceptances	 	1,386	 	950	 	1,308	 	
Accrued Interest Receivable	 	45,334	 	43,047	 	39,905	 	
Foreclosed Real Estate	 	3,132	 	201	 	428	 	
Mortgage Servicing Rights	 	25,970	 	25,437	 	21,057	 	
Goodwill	 	31,517	 	34,959	 	34,959	 	
Other Assets	 	496,922	 	464,637	 	474,567	 	
Total Assets	 	$	12,414,827	 	$	12,208,025	 	$	10,763,475	 	
 	 	 	 	 	 	 	 	
Liabilities	 	 	 	 	 	 	 	
Deposits	 	 	 	 	 	 	 	
Noninterest-Bearing Demand	 	$	2,252,083	 	$	2,055,872	 	$	1,754,724	 	
Interest-Bearing Demand	 	1,609,413	 	1,588,705	 	1,854,611	 	
Savings	 	4,405,969	 	4,365,257	 	3,104,863	 	
Time	 	1,142,211	 	1,240,266	 	1,577,900	 	
Total Deposits	 	9,409,676	 	9,250,100	 	8,292,098	 	
Funds Purchased	 	8,888	 	8,670	 	15,734	 	
Short-Term Borrowings	 	6,900	 	7,200	 	4,900	 	
Securities Sold Under Agreements to Repurchase	 	1,618,717	 	1,524,755	 	1,028,835	 	
Long-Term Debt (includes $119,275 carried at fair value as of December 31, 2008)	 	90,317	 	91,424	 	203,285	 	
Banker’s Acceptances	 	1,386	 	950	 	1,308	 	
Retirement Benefits Payable	 	37,435	 	43,918	 	54,776	 	
Accrued Interest Payable	 	7,026	 	9,740	 	13,837	 	
Taxes Payable and Deferred Taxes	 	229,140	 	254,375	 	229,699	 	
Other Liabilities	 	109,369	 	114,094	 	128,299	 	
Total Liabilities	 	11,518,854	 	11,305,226	 	9,972,771	 	
 	 	 	 	 	 	 	 	
Shareholders’ Equity	 	 	 	 	 	 	 	
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: December 31, 2009 - 57,028,239 / 48,018,943; September 30, 2009 - 57,028,554 / 47,937,543; and December 31, 2008 - 57,019,887 / 47,753,371)	 	569	 	569	 	568	 	
Capital Surplus	 	494,318	 	492,346	 	492,515	 	
Accumulated Other Comprehensive Income (Loss)	 	6,925	 	37,307	 	(28,888	)	
Retained Earnings	 	843,521	 	825,709	 	787,924	 	
Treasury Stock, at Cost (Shares: December 31, 2009 - 9,009,296; September 30, 2009 - 9,091,011; and December 31, 2008 - 9,266,516)	 	(449,360	)	(453,132	)	(461,415	)	
Total Shareholders’ Equity	 	895,973	 	902,799	 	790,704	 	
Total Liabilities and Shareholders’ Equity	 	$	12,414,827	 	$	12,208,025	 	$	10,763,475	 	

 

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Shareholders’ Equity	 	Table 5	
 
(dollars in thousands)	 	Total	 	Common
Stock	 	Capital
Surplus	 	Accum.
Other
Comprehensive
(Loss)
Income	 	Retained
Earnings	 	Treasury
Stock	 	Comprehensive
Income	 	
Balance as of December 31, 2008	 	$	790,704	 	$	568	 	$	492,515	 	$	(28,888	)	$	787,924	 	$	(461,415	)	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	144,033	 	—	 	—	 	—	 	144,033	 	—	 	$	144,033	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	 	30,567	 	—	 	—	 	30,567	 	—	 	—	 	30,567	 	
Unamortized Gain Related to Defined Benefit Plans	 	3,750	 	—	 	—	 	3,750	 	—	 	—	 	3,750	 	
Amortization of Net Loss Related to Pension and Postretirement Benefit Plans	 	1,496	 	—	 	—	 	1,496	 	—	 	—	 	1,496	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	179,846	 	
Share-Based Compensation	 	3,552	 	—	 	3,552	 	—	 	—	 	—	 	 	 	
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (301,306 shares)	 	9,444	 	1	 	(1,749	)	—	 	(2,200	)	13,392	 	 	 	
Common Stock Repurchased (35,734 shares)	 	(1,337	)	—	 	—	 	—	 	—	 	(1,337	)	 	 	
Cash Dividends Paid	 	(86,236	)	—	 	—	 	—	 	(86,236	)	—	 	 	 	
Balance as of December 31, 2009	 	$	895,973	 	$	569	 	$	494,318	 	$	6,925	 	$	843,521	 	$	(449,360	)	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adoption of Accounting Standards Related to the Fair Value Option	 	(2,736	)	—	 	—	 	—	 	(2,736	)	—	 	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	192,213	 	—	 	—	 	—	 	192,213	 	—	 	$	192,213	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	 	(2,889	)	—	 	—	 	(2,889	)	—	 	—	 	(2,889	)	
Unamortized Loss Related to Defined Benefit Plans	 	(20,967	)	—	 	—	 	(20,967	)	—	 	—	 	(20,967	)	
Amortization of Net Loss Related to Pension and Postretirement Benefit Plans	 	59	 	—	 	—	 	59	 	—	 	—	 	59	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	168,416	 	
Share-Based Compensation	 	5,808	 	—	 	5,808	 	—	 	—	 	—	 	 	 	
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (431,254 shares)	 	15,831	 	1	 	1,917	 	—	 	(5,336	)	19,249	 	 	 	
Common Stock Repurchased (1,267,528 shares)	 	(62,015	)	—	 	—	 	—	 	—	 	(62,015	)	 	 	
Cash Dividends Paid	 	(84,855	)	—	 	—	 	—	 	(84,855	)	—	 	 	 	
Balance as of December 31, 2008	 	$	790,704	 	$	568	 	$	492,515	 	$	(28,888	)	$	787,924	 	$	(461,415	)	 	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Average Balances and Interest Rates - Taxable Equivalent Basis	 	Table 6a	
 
 	 	Three Months Ended	 	Three Months Ended	 	Three Months Ended	 	
 	 	December 31, 2009	 	September 30, 2009	 	December 31, 2008	 	
 	 	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	 	$	8.2	 	$	—	 	0.09	%	$	5.1	 	$	—	 	0.28	%	$	13.9	 	$	—	 	0.71	%	
Funds Sold	 	534.1	 	0.3	 	0.26	 	489.7	 	0.3	 	0.26	 	66.6	 	—	 	0.28	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	—	 	—	 	—	 	—	 	—	 	—	 	90.6	 	1.2	 	5.09	 	
Available-for-Sale	 	4,939.2	 	41.6	 	3.37	 	4,491.2	 	46.7	 	4.16	 	2,535.6	 	34.6	 	5.46	 	
Held-to-Maturity	 	188.4	 	2.0	 	4.29	 	202.0	 	2.2	 	4.31	 	244.7	 	2.7	 	4.47	 	
Loans Held for Sale	 	15.6	 	0.2	 	3.95	 	25.2	 	0.2	 	2.95	 	8.8	 	0.1	 	5.54	 	
Loans and Leases (1)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	820.3	 	8.3	 	4.01	 	884.4	 	9.0	 	4.06	 	1,071.1	 	13.7	 	5.08	 	
Commercial Mortgage	 	793.9	 	10.2	 	5.09	 	787.0	 	10.2	 	5.14	 	724.6	 	10.8	 	5.94	 	
Construction	 	132.2	 	1.3	 	3.81	 	140.9	 	1.4	 	3.81	 	155.7	 	2.1	 	5.37	 	
Commercial Lease Financing	 	438.0	 	3.6	 	3.34	 	464.0	 	3.0	 	2.56	 	466.1	 	4.9	 	4.21	 	
Residential Mortgage	 	2,223.3	 	32.1	 	5.77	 	2,273.8	 	33.0	 	5.81	 	2,468.1	 	37.2	 	6.02	 	
Home Equity	 	939.2	 	11.9	 	5.05	 	963.3	 	12.3	 	5.08	 	1,019.6	 	13.9	 	5.41	 	
Automobile	 	291.8	 	5.8	 	7.85	 	304.5	 	6.1	 	7.88	 	382.3	 	7.7	 	8.02	 	
Other (2)	 	209.1	 	4.1	 	7.76	 	217.1	 	4.3	 	7.95	 	249.6	 	5.2	 	8.36	 	
Total Loans and Leases	 	5,847.8	 	77.3	 	5.26	 	6,035.0	 	79.3	 	5.24	 	6,537.1	 	95.5	 	5.82	 	
Other	 	79.7	 	0.3	 	1.39	 	79.7	 	0.3	 	1.39	 	79.7	 	0.3	 	1.38	 	
Total Earning Assets(3)	 	11,613.0	 	121.7	 	4.18	 	11,327.9	 	129.0	 	4.54	 	9,577.0	 	134.4	 	5.60	 	
Cash and Noninterest-Bearing Deposits	 	209.0	 	 	 	 	 	203.5	 	 	 	 	 	252.3	 	 	 	 	 	
Other Assets	 	457.5	 	 	 	 	 	457.6	 	 	 	 	 	478.5	 	 	 	 	 	
Total Assets	 	$	12,279.5	 	 	 	 	 	$	11,989.0	 	 	 	 	 	$	10,307.8	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,573.7	 	0.2	 	0.06	 	$	1,625.6	 	0.2	 	0.06	 	$	1,747.3	 	0.7	 	0.16	 	
Savings	 	4,415.6	 	5.5	 	0.49	 	4,190.2	 	6.6	 	0.63	 	2,827.9	 	6.4	 	0.90	 	
Time	 	1,188.2	 	4.6	 	1.53	 	1,264.7	 	5.4	 	1.69	 	1,561.6	 	9.8	 	2.51	 	
Total Interest-Bearing Deposits	 	7,177.5	 	10.3	 	0.57	 	7,080.5	 	12.2	 	0.69	 	6,136.8	 	16.9	 	1.10	 	
Short-Term Borrowings	 	27.9	 	—	 	0.10	 	18.1	 	—	 	0.12	 	166.4	 	0.3	 	0.66	 	
Securities Sold Under Agreements to Repurchase	 	1,452.2	 	6.4	 	1.73	 	1,464.3	 	6.4	 	1.71	 	1,032.2	 	8.0	 	3.04	 	
Long-Term Debt	 	91.4	 	1.2	 	5.27	 	91.4	 	1.2	 	5.26	 	204.0	 	3.1	 	6.09	 	
Total Interest-Bearing Liabilities	 	8,749.0	 	17.9	 	0.81	 	8,654.3	 	19.8	 	0.91	 	7,539.4	 	28.3	 	1.49	 	
Net Interest Income	 	 	 	$	103.8	 	 	 	 	 	$	109.2	 	 	 	 	 	$	106.1	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.37	%	 	 	 	 	3.63	%	 	 	 	 	4.11	%	
Net Interest Margin	 	 	 	 	 	3.57	%	 	 	 	 	3.85	%	 	 	 	 	4.43	%	
Noninterest-Bearing Demand Deposits	 	2,145.2	 	 	 	 	 	2,050.5	 	 	 	 	 	1,587.5	 	 	 	 	 	
Other Liabilities	 	434.5	 	 	 	 	 	404.2	 	 	 	 	 	381.5	 	 	 	 	 	
Shareholders’ Equity	 	950.8	 	 	 	 	 	880.0	 	 	 	 	 	799.4	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	12,279.5	 	 	 	 	 	$	11,989.0	 	 	 	 	 	$	10,307.8	 	 	 	 	 	

(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 35%, of $251,000, $329,000, and $234,000 for the three months ended December 31, 2009, September 30, 2009, and December 31, 2008, respectively.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Average Balances and Interest Rates - Taxable Equivalent Basis	 	Table 6b	
 
 	 	Year Ended	 	Year Ended	 	
 	 	December 31, 2009	 	December 31, 2008	 	
 	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	
(dollars in millions)	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	5.8	 	$	—	 	0.34	%	$	20.1	 	$	0.4	 	2.27	%	
Funds Sold	 	690.9	 	1.8	 	0.26	 	78.6	 	1.6	 	2.04	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	12.0	 	0.6	 	4.94	 	94.1	 	4.7	 	4.99	 	
Available-for-Sale	 	3,938.2	 	159.4	 	4.05	 	2,604.4	 	140.0	 	5.38	 	
Held-to-Maturity	 	211.2	 	9.1	 	4.33	 	263.7	 	11.9	 	4.50	 	
Loans Held for Sale	 	21.7	 	0.8	 	3.85	 	8.8	 	0.5	 	5.72	 	
Loans and Leases (1)	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	929.4	 	37.6	 	4.05	 	1,061.7	 	58.4	 	5.50	 	
Commercial Mortgage	 	769.1	 	39.9	 	5.19	 	683.1	 	41.9	 	6.14	 	
Construction	 	142.9	 	5.7	 	3.97	 	173.4	 	10.3	 	5.93	 	
Commercial Lease Financing	 	453.7	 	13.8	 	3.04	 	471.8	 	13.2	 	2.80	 	
Residential Mortgage	 	2,322.6	 	136.1	 	5.86	 	2,484.9	 	150.9	 	6.07	 	
Home Equity	 	982.3	 	49.9	 	5.08	 	997.9	 	58.9	 	5.90	 	
Automobile	 	319.3	 	25.3	 	7.91	 	411.8	 	33.4	 	8.11	 	
Other (2)	 	225.7	 	17.8	 	7.87	 	257.6	 	23.2	 	9.01	 	
Total Loans and Leases	 	6,145.0	 	326.1	 	5.31	 	6,542.2	 	390.2	 	5.96	 	
Other	 	79.7	 	1.1	 	1.39	 	79.6	 	1.7	 	2.11	 	
Total Earning Assets(3)	 	11,104.5	 	498.9	 	4.49	 	9,691.5	 	551.0	 	5.69	 	
Cash and Noninterest-Bearing Deposits	 	214.8	 	 	 	 	 	273.3	 	 	 	 	 	
Other Assets	 	464.1	 	 	 	 	 	483.4	 	 	 	 	 	
Total Assets	 	$	11,783.4	 	 	 	 	 	$	10,448.2	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,747.7	 	1.1	 	0.06	 	$	1,663.7	 	5.5	 	0.33	 	
Savings	 	4,046.7	 	28.1	 	0.69	 	2,808.7	 	28.6	 	1.02	 	
Time	 	1,320.1	 	24.9	 	1.88	 	1,637.2	 	48.3	 	2.95	 	
Total Interest-Bearing Deposits	 	7,114.5	 	54.1	 	0.76	 	6,109.6	 	82.4	 	1.35	 	
Short-Term Borrowings	 	20.3	 	—	 	0.11	 	106.2	 	1.7	 	1.65	 	
Securities Sold Under Agreements to Repurchase	 	1,257.0	 	25.9	 	2.06	 	1,083.3	 	33.8	 	3.12	 	
Long-Term Debt	 	100.4	 	5.4	 	5.43	 	218.2	 	13.4	 	6.15	 	
Total Interest-Bearing Liabilities	 	8,492.2	 	85.4	 	1.01	 	7,517.3	 	131.3	 	1.75	 	
Net Interest Income	 	 	 	$	413.5	 	 	 	 	 	$	419.7	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.48	%	 	 	 	 	3.94	%	
Net Interest Margin	 	 	 	 	 	3.72	%	 	 	 	 	4.33	%	
Noninterest-Bearing Demand Deposits	 	1,993.9	 	 	 	 	 	1,741.8	 	 	 	 	 	
Other Liabilities	 	420.1	 	 	 	 	 	406.0	 	 	 	 	 	
Shareholders’ Equity	 	877.2	 	 	 	 	 	783.1	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	11,783.4	 	 	 	 	 	$	10,448.2	 	 	 	 	 	

(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 35%, of $1,137,000 and $945,000 for the year ended December 31, 2009 and 2008, respectively.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Analysis of Change in Net Interest Income - Taxable Equivalent Basis	 	Table 7a	
 
 	 	Three Months Ended December 31, 2009	 	
 	 	Compared to September 30, 2009	 	
(dollars in millions)	 	Volume (1)	 	Rate (1)	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	$	4.4	 	$	(9.5	)	$	(5.1	)	
Held-to-Maturity	 	(0.2	)	—	 	(0.2	)	
Loans Held for Sale	 	(0.1	)	0.1	 	—	 	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	(0.6	)	(0.1	)	(0.7	)	
Commercial Mortgage	 	0.1	 	(0.1	)	—	 	
Construction	 	(0.1	)	—	 	(0.1	)	
Commercial Lease Financing	 	(0.2	)	0.8	 	0.6	 	
Residential Mortgage	 	(0.7	)	(0.2	)	(0.9	)	
Home Equity	 	(0.3	)	(0.1	)	(0.4	)	
Automobile	 	(0.3	)	—	 	(0.3	)	
Other (2)	 	(0.1	)	(0.1	)	(0.2	)	
Total Loans and Leases	 	(2.2	)	0.2	 	(2.0	)	
Total Change in Interest Income	 	1.9	 	(9.2	)	(7.3	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Savings	 	0.4	 	(1.5	)	(1.1	)	
Time	 	(0.3	)	(0.5	)	(0.8	)	
Total Interest-Bearing Deposits	 	0.1	 	(2.0	)	(1.9	)	
Securities Sold Under Agreements to Repurchase	 	(0.1	)	0.1	 	—	 	
Total Change in Interest Expense	 	—	 	(1.9	)	(1.9	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	1.9	 	$	(7.3	)	$	(5.4	)	

(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	 	Table 7b	
 
 	 	Three Months Ended December 31, 2009	 	
 	 	Compared to December 31, 2008	 	
(dollars in millions)	 	Volume (1)	 	Rate (1)	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	0.3	 	$	—	 	$	0.3	 	
Investment Securities	 	 	 	 	 	 	 	
Trading	 	(0.6	)	(0.6	)	(1.2	)	
Available-for-Sale	 	23.9	 	(16.9	)	7.0	 	
Held-to-Maturity	 	(0.6	)	(0.1	)	(0.7	)	
Loans Held for Sale	 	0.1	 	—	 	0.1	 	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	(2.8	)	(2.6	)	(5.4	)	
Commercial Mortgage	 	1.0	 	(1.6	)	(0.6	)	
Construction	 	(0.3	)	(0.5	)	(0.8	)	
Commercial Lease Financing	 	(0.3	)	(1.0	)	(1.3	)	
Residential Mortgage	 	(3.6	)	(1.5	)	(5.1	)	
Home Equity	 	(1.0	)	(1.0	)	(2.0	)	
Automobile	 	(1.8	)	(0.1	)	(1.9	)	
Other (2)	 	(0.8	)	(0.3	)	(1.1	)	
Total Loans and Leases	 	(9.6	)	(8.6	)	(18.2	)	
Total Change in Interest Income	 	13.5	 	(26.2	)	(12.7	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	(0.1	)	(0.4	)	(0.5	)	
Savings	 	2.7	 	(3.6	)	(0.9	)	
Time	 	(1.9	)	(3.3	)	(5.2	)	
Total Interest-Bearing Deposits	 	0.7	 	(7.3	)	(6.6	)	
Short-Term Borrowings	 	(0.2	)	(0.1	)	(0.3	)	
Securities Sold Under Agreements to Repurchase	 	2.6	 	(4.2	)	(1.6	)	
Long-Term Debt	 	(1.5	)	(0.4	)	(1.9	)	
Total Change in Interest Expense	 	1.6	 	(12.0	)	(10.4	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	11.9	 	$	(14.2	)	$	(2.3	)	

(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	 	Table 7c	
 
 	 	Year Ended December 31, 2009	 	
 	 	Compared to December 31, 2008	 	
(dollars in millions)	 	Volume (1)	 	Rate (1)	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	(0.2	)	$	(0.2	)	$	(0.4	)	
Funds Sold	 	2.7	 	(2.5	)	0.2	 	
Investment Securities	 	 	 	 	 	 	 	
Trading	 	(4.1	)	—	 	(4.1	)	
Available-for-Sale	 	59.9	 	(40.5	)	19.4	 	
Held-to-Maturity	 	(2.3	)	(0.5	)	(2.8	)	
Loans Held for Sale	 	0.5	 	(0.2	)	0.3	 	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	(6.7	)	(14.1	)	(20.8	)	
Commercial Mortgage	 	4.9	 	(6.9	)	(2.0	)	
Construction	 	(1.6	)	(3.0	)	(4.6	)	
Commercial Lease Financing	 	(0.5	)	1.1	 	0.6	 	
Residential Mortgage	 	(9.7	)	(5.1	)	(14.8	)	
Home Equity	 	(0.9	)	(8.1	)	(9.0	)	
Automobile	 	(7.3	)	(0.8	)	(8.1	)	
Other (2)	 	(2.7	)	(2.7	)	(5.4	)	
Total Loans and Leases	 	(24.5	)	(39.6	)	(64.1	)	
Other	 	—	 	(0.6	)	(0.6	)	
Total Change in Interest Income	 	32.0	 	(84.1	)	(52.1	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	0.3	 	(4.7	)	(4.4	)	
Savings	 	10.4	 	(10.9	)	(0.5	)	
Time	 	(8.2	)	(15.2	)	(23.4	)	
Total Interest-Bearing Deposits	 	2.5	 	(30.8	)	(28.3	)	
Short-Term Borrowings	 	(0.8	)	(0.9	)	(1.7	)	
Securities Sold Under Agreements to Repurchase	 	4.9	 	(12.8	)	(7.9	)	
Long-Term Debt	 	(6.6	)	(1.4	)	(8.0	)	
Total Change in Interest Expense	 	—	 	(45.9	)	(45.9	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	32.0	 	$	(38.2	)	$	(6.2	)	

(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
Salaries and Benefits	 	Table 8	
 
 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands)	 	2009	 	2009	 	2008	 	2009	 	2008	 	
Salaries	 	$	29,323	 	$	29,988	 	$	31,328	 	$	119,888	 	$	120,440	 	
Incentive Compensation	 	5,465	 	5,524	 	3,011	 	17,688	 	19,369	 	
Share-Based Compensation and Cash Grants for the Purchase of Company Stock	 	5,789	 	595	 	1,097	 	7,775	 	9,689	 	
Commission Expense	 	1,543	 	1,523	 	1,423	 	7,071	 	6,941	 	
Retirement and Other Benefits	 	4,040	 	3,962	 	2,838	 	16,425	 	14,660	 	
Payroll Taxes	 	1,952	 	2,176	 	2,108	 	9,972	 	10,175	 	
Medical, Dental, and Life Insurance	 	2,482	 	2,619	 	1,589	 	9,001	 	9,010	 	
Separation Expense	 	379	 	—	 	343	 	748	 	1,674	 	
Total Salaries and Benefits	 	$	50,973	 	$	46,387	 	$	43,737	 	$	188,568	 	$	191,958	 	

 
Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances	 	Table 9	
 
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands)	 	2009	 	2009	 	2009	 	2009	 	2008	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	795,167	 	$	845,056	 	$	932,444	 	$	1,000,640	 	$	1,053,781	 	
Commercial Mortgage	 	841,431	 	777,498	 	788,226	 	726,193	 	740,779	 	
Construction	 	108,395	 	137,414	 	140,455	 	153,754	 	153,952	 	
Lease Financing	 	412,933	 	458,696	 	468,030	 	454,822	 	468,140	 	
Total Commercial	 	2,157,926	 	2,218,664	 	2,329,155	 	2,335,409	 	2,416,652	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	2,190,677	 	2,246,729	 	2,309,971	 	2,402,061	 	2,461,824	 	
Home Equity	 	921,571	 	952,076	 	977,632	 	1,016,381	 	1,033,221	 	
Automobile	 	283,937	 	299,657	 	309,877	 	343,642	 	369,789	 	
Other (1)	 	205,674	 	214,232	 	223,276	 	241,233	 	248,747	 	
Total Consumer	 	3,601,859	 	3,712,694	 	3,820,756	 	4,003,317	 	4,113,581	 	
Total Loans and Leases	 	$	5,759,785	 	$	5,931,358	 	$	6,149,911	 	$	6,338,726	 	$	6,530,233	 	
 
Higher Risk Loans Outstanding
 
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands)	 	2009	 	2009	 	2009	 	2009	 	2008	 	
Residential Home Building (2)	 	$	31,067	 	$	38,592	 	$	22,850	 	$	8,536	 	$	5,001	 	
Residential Land Loans (3)	 	37,873	 	43,128	 	47,871	 	50,663	 	54,483	 	
Home Equity Loans (4)	 	28,076	 	24,339	 	21,832	 	19,431	 	14,917	 	
Air Transportation (5)	 	50,426	 	60,996	 	62,148	 	76,303	 	79,692	 	

(1)         Comprised of other revolving credit, installment, and lease financing.
(2)         Residential home building loans are collateralized by residential developments and comprised 51% of total commercial construction as of December 31, 2009. Higher risk exposures represent 54% of total residential home building and include $9,219 outside of Oahu and $6,285 in non-accrual loans, inclusive of $3,005 in non-accrual loans held for sale, as of December 31, 2009.
(3)         Included in residential mortgage, residential land loans are collateralized by land in the state of Hawaii and includes $32,454 outside of Oahu as of December 31, 2009.
(4)         Included in home equity, home equity loans in the state of Hawaii with current FICO scores less than 600 and original LTV above 70%, all originated after 2004.
(5)         Equity in seven leases, five of which are leveraged, all to passenger carriers, one of which is based outside the United States as of December 31, 2009.
 
Deposits
 
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands)	 	2009	 	2009	 	2009	 	2009	 	2008	 	
Consumer	 	$	4,926,567	 	$	4,776,626	 	$	4,747,612	 	$	4,702,494	 	$	4,593,248	 	
Commercial	 	4,114,583	 	4,002,068	 	3,828,521	 	3,645,842	 	3,221,668	 	
Public and Other	 	368,526	 	471,406	 	443,528	 	864,455	 	477,182	 	
Total Deposits	 	$	9,409,676	 	$	9,250,100	 	$	9,019,661	 	$	9,212,791	 	$	8,292,098	 	

 
Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More	 	Table 10	
 
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands)	 	2009	 	2009	 	2009	 	2009	 	2008	 	
Non-Performing Assets(1)	 	 	 	 	 	 	 	 	 	 	 	
Non-Accrual Loans and Leases	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	6,646	 	$	9,924	 	$	10,511	 	$	21,839	 	$	3,869	 	
Commercial Mortgage	 	1,167	 	1,193	 	1,219	 	—	 	—	 	
Construction	 	8,154	 	15,534	 	6,548	 	5,001	 	5,001	 	
Lease Financing	 	631	 	690	 	956	 	910	 	133	 	
Total Commercial	 	16,598	 	27,341	 	19,234	 	27,750	 	9,003	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	19,893	 	16,718	 	16,265	 	9,230	 	3,904	 	
Home Equity	 	5,153	 	3,726	 	2,567	 	1,620	 	1,614	 	
Other(2)	 	550	 	550	 	550	 	1,383	 	—	 	
Total Consumer	 	25,596	 	20,994	 	19,382	 	12,233	 	5,518	 	
Total Non-Accrual Loans and Leases	 	42,194	 	48,335	 	38,616	 	39,983	 	14,521	 	
Non-Accrual Loans Held for Sale	 	3,005	 	—	 	—	 	—	 	—	 	
Foreclosed Real Estate	 	3,132	 	201	 	438	 	346	 	428	 	
Total Non-Performing Assets	 	$	48,331	 	$	48,536	 	$	39,054	 	$	40,329	 	$	14,949	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Accruing Loans and Leases Past Due 90 Days or More	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	623	 	$	137	 	$	13	 	$	—	 	$	6,785	 	
Construction	 	—	 	3,005	 	—	 	—	 	—	 	
Lease Financing	 	120	 	—	 	—	 	257	 	268	 	
Total Commercial	 	743	 	3,142	 	13	 	257	 	7,053	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	8,979	 	5,951	 	4,657	 	4,794	 	4,192	 	
Home Equity	 	2,210	 	1,698	 	2,879	 	1,720	 	1,077	 	
Automobile	 	875	 	749	 	769	 	776	 	743	 	
Other(2)	 	886	 	739	 	1,270	 	1,100	 	1,134	 	
Total Consumer	 	12,950	 	9,137	 	9,575	 	8,390	 	7,146	 	
Total Accruing Loans and Leases Past Due 90 Days or More	 	$	13,693	 	$	12,279	 	$	9,588	 	$	8,647	 	$	14,199	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Restructured Loans Not Included in Non-Accrual Loans and Accruing Loans Past Due 90 Days or More	 	$	7,274	 	$	7,578	 	$	2,307	 	$	—	 	$	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Loans and Leases	 	$	5,759,785	 	$	5,931,358	 	$	6,149,911	 	$	6,338,726	 	$	6,530,233	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	 	0.73	%	0.81	%	0.63	%	0.63	%	0.22	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets to Total Loans and Leases, Loans Held for Sale, and Foreclosed Real Estate	 	0.84	%	0.82	%	0.63	%	0.63	%	0.23	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases, Commercial Loans Held for Sale, and Commercial Foreclosed Real Estate	 	1.03	%	1.23	%	0.82	%	1.19	%	0.37	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate	 	0.72	%	0.57	%	0.52	%	0.31	%	0.14	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases, Loans Held for Sale, and Foreclosed Real Estate	 	1.07	%	1.02	%	0.79	%	0.77	%	0.44	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Quarter to Quarter Changes in Non-Performing Assets (1)	 	 	 	 	 	 	 	 	 	 	 	
Balance at Beginning of Quarter	 	$	48,536	 	$	39,054	 	$	40,329	 	$	14,949	 	$	5,927	 	
Additions	 	14,874	 	22,856	 	22,459	 	29,164	 	15,464	 	
Reductions	 	 	 	 	 	 	 	 	 	 	 	
Payments	 	(4,128	)	(6,899	)	(15,593	)	(874	)	(2,440	)	
Return to Accrual Status	 	(1,818	)	(3,373	)	(230	)	(768	)	(1,468	)	
Sales of Foreclosed Real Estate	 	(38	)	(237	)	—	 	(82	)	—	 	
Charge-offs/Write-downs	 	(9,095	)	(2,865	)	(7,911	)	(2,060	)	(2,534	)	
Total Reductions	 	(15,079	)	(13,374	)	(23,734	)	(3,784	)	(6,442	)	
Balance at End of Quarter	 	$	48,331	 	$	48,536	 	$	39,054	 	$	40,329	 	$	14,949	 	

(1)         Excluded from non-accrual loans held for sale are contractually binding non-accrual loans held for sale of $4.2 million, $7.7 million, and $5.2 million as of December 31, 2009, September 30, 2009, and June 30, 2009, respectively.
(2)         Comprised of other revolving credit, installment, and lease financing.

 

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Reserve for Credit Losses	 	Table 11	
 
 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands)	 	2009	 	2009	 	2008	 	2009	 	2008	 	
Balance at Beginning of Period	 	$	148,077	 	$	142,835	 	$	120,667	 	$	128,667	 	$	96,167	 	
Loans and Leases Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(3,148	)	(4,769	)	(3,490	)	(26,641	)	(8,059	)	
Commercial Mortgage	 	—	 	(2,092	)	—	 	(2,092	)	—	 	
Construction	 	(4,515	)	(5,845	)	(1,932	)	(10,360	)	(1,932	)	
Lease Financing	 	(9,409	)	(120	)	—	 	(14,022	)	(304	)	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	(2,697	)	(2,430	)	(192	)	(7,768	)	(723	)	
Home Equity	 	(3,489	)	(3,614	)	(732	)	(12,722	)	(2,530	)	
Automobile	 	(2,209	)	(2,602	)	(3,277	)	(9,903	)	(11,236	)	
Other (1)	 	(2,981	)	(3,032	)	(2,363	)	(13,233	)	(10,564	)	
Total Loans and Leases Charged-Off	 	(28,448	)	(24,504	)	(11,986	)	(96,741	)	(35,348	)	
Recoveries on Loans and Leases Previously Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	189	 	252	 	227	 	1,211	 	1,634	 	
Commercial Mortgage	 	45	 	—	 	—	 	45	 	—	 	
Construction	 	476	 	—	 	—	 	476	 	—	 	
Lease Financing	 	50	 	49	 	3	 	131	 	10	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	340	 	448	 	13	 	1,059	 	175	 	
Home Equity	 	125	 	67	 	25	 	364	 	108	 	
Automobile	 	842	 	849	 	622	 	3,153	 	2,817	 	
Other (1)	 	580	 	581	 	538	 	2,584	 	2,589	 	
Total Recoveries on Loans and Leases Previously Charged-Off	 	2,647	 	2,246	 	1,428	 	9,023	 	7,333	 	
Net Loans and Leases Charged-Off	 	(25,801	)	(22,258	)	(10,558	)	(87,718	)	(28,015	)	
Provision for Credit Losses	 	26,801	 	27,500	 	18,558	 	107,878	 	60,515	 	
Provision for Unfunded Commitments	 	—	 	—	 	—	 	250	 	—	 	
Balance at End of Period(2)	 	$	149,077	 	$	148,077	 	$	128,667	 	$	149,077	 	$	128,667	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Components	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	143,658	 	$	142,658	 	$	123,498	 	$	143,658	 	$	123,498	 	
Reserve for Unfunded Commitments	 	5,419	 	5,419	 	5,169	 	5,419	 	5,169	 	
Total Reserve for Credit Losses	 	$	149,077	 	$	148,077	 	$	128,667	 	$	149,077	 	$	128,667	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases Outstanding	 	$	5,847,820	 	$	6,034,956	 	$	6,537,134	 	$	6,144,976	 	$	6,542,178	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)	 	1.75	%	1.46	%	0.64	%	1.43	%	0.43	%	
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding	 	2.49	%	2.41	%	1.89	%	2.49	%	1.89	%	

(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 12a	
 
 	 	Retail	 	Commercial	 	Investment	 	Treasury	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	and Other	 	Total	 	
Three Months Ended December 31, 2009	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	51,510	 	$	39,480	 	$	4,349	 	$	8,195	 	$	103,534	 	
Provision for Credit Losses	 	11,886	 	14,439	 	489	 	(13	)	26,801	 	
Net Interest Income After Provision for Credit Losses	 	39,624	 	25,041	 	3,860	 	8,208	 	76,733	 	
Noninterest Income	 	25,103	 	12,249	 	14,646	 	28,813	 	80,811	 	
Noninterest Expense	 	(44,590	)	(24,943	)	(16,775	)	(2,212	)	(88,520	)	
Income Before Income Taxes	 	20,137	 	12,347	 	1,731	 	34,809	 	69,024	 	
Provision for Income Taxes	 	(7,483	)	(3,770	)	(640	)	(16,615	)	(28,508	)	
Net Income	 	12,654	 	8,577	 	1,091	 	18,194	 	40,516	 	
Total Assets as of December 31, 2009	 	$	3,340,804	 	$	2,465,128	 	$	212,145	 	$	6,396,750	 	$	12,414,827	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended December 31, 2008 (1)	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	59,409	 	$	36,903	 	$	3,912	 	$	5,630	 	$	105,854	 	
Provision for Credit Losses	 	5,933	 	12,625	 	—	 	—	 	18,558	 	
Net Interest Income After Provision for Credit Losses	 	53,476	 	24,278	 	3,912	 	5,630	 	87,296	 	
Noninterest Income	 	25,707	 	14,112	 	14,713	 	(69	)	54,463	 	
Noninterest Expense	 	(42,182	)	(24,226	)	(14,891	)	(1,391	)	(82,690	)	
Income Before Income Taxes	 	37,001	 	14,164	 	3,734	 	4,170	 	59,069	 	
Provision for Income Taxes	 	(13,696	)	(4,955	)	(1,382	)	271	 	(19,762	)	
Net Income	 	23,305	 	9,209	 	2,352	 	4,441	 	39,307	 	
Total Assets as of December 31, 2008 (1)	 	$	3,994,532	 	$	2,729,738	 	$	278,748	 	$	3,760,457	 	$	10,763,475	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Business Segments Selected Financial Information	 	Table 12b	
 
 	 	Retail	 	Commercial	 	Investment	 	Treasury	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	and Other	 	Total	 	
Year Ended December 31, 2009	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	218,681	 	$	158,259	 	$	16,942	 	$	18,452	 	$	412,334	 	
Provision for Credit Losses	 	56,807	 	49,308	 	2,073	 	(310	)	107,878	 	
Net Interest Income After Provision for Credit Losses	 	161,874	 	108,951	 	14,869	 	18,762	 	304,456	 	
Noninterest Income	 	103,864	 	67,282	 	57,732	 	38,930	 	267,808	 	
Noninterest Expense	 	(174,755	)	(103,396	)	(64,085	)	(7,788	)	(350,024	)	
Income Before Income Taxes	 	90,983	 	72,837	 	8,516	 	49,904	 	222,240	 	
Provision for Income Taxes	 	(34,096	)	(25,734	)	(3,151	)	(15,226	)	(78,207	)	
Net Income	 	56,887	 	47,103	 	5,365	 	34,678	 	144,033	 	
Total Assets as of December 31, 2009	 	$	3,340,804	 	$	2,465,128	 	$	212,145	 	$	6,396,750	 	$	12,414,827	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Year Ended December 31, 2008(1)	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	245,768	 	$	149,472	 	$	15,643	 	$	7,894	 	$	418,777	 	
Provision for Credit Losses	 	27,347	 	32,915	 	1,088	 	(835	)	60,515	 	
Net Interest Income After Provision for Credit Losses	 	218,421	 	116,557	 	14,555	 	8,729	 	358,262	 	
Noninterest Income	 	98,795	 	66,524	 	69,452	 	23,342	 	258,113	 	
Noninterest Expense	 	(169,917	)	(99,537	)	(64,917	)	(12,403	)	(346,774	)	
Income Before Income Taxes	 	147,299	 	83,544	 	19,090	 	19,668	 	269,601	 	
Provision for Income Taxes	 	(54,545	)	(32,088	)	(7,063	)	16,308	 	(77,388	)	
Net Income	 	92,754	 	51,456	 	12,027	 	35,976	 	192,213	 	
Total Assets as of December 31, 2008 (1)	 	$	3,994,532	 	$	2,729,738	 	$	278,748	 	$	3,760,457	 	$	10,763,475	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Selected Quarterly Financial Data	 	Table 13	
 
 	 	Three Months Ended	 	
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands, except per share amounts)	 	2009	 	2009	 	2009	 	2009	 	2008(1)	 	
Quarterly Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	77,457	 	$	79,530	 	$	83,342	 	$	86,592	 	$	95,598	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	—	 	—	 	—	 	594	 	1,152	 	
Available-for-Sale	 	41,369	 	46,419	 	38,155	 	32,301	 	34,352	 	
Held-to-Maturity	 	2,018	 	2,179	 	2,369	 	2,567	 	2,735	 	
Deposits	 	2	 	3	 	5	 	10	 	25	 	
Funds Sold	 	353	 	320	 	526	 	577	 	48	 	
Other	 	277	 	277	 	276	 	276	 	276	 	
Total Interest Income	 	121,476	 	128,728	 	124,673	 	122,917	 	134,186	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	10,317	 	12,235	 	14,481	 	17,025	 	16,960	 	
Securities Sold Under Agreements to Repurchase	 	6,411	 	6,394	 	6,477	 	6,652	 	7,984	 	
Funds Purchased	 	7	 	5	 	5	 	5	 	175	 	
Short-Term Borrowings	 	—	 	—	 	—	 	—	 	103	 	
Long-Term Debt	 	1,207	 	1,207	 	859	 	2,173	 	3,110	 	
Total Interest Expense	 	17,942	 	19,841	 	21,822	 	25,855	 	28,332	 	
Net Interest Income	 	103,534	 	108,887	 	102,851	 	97,062	 	105,854	 	
Provision for Credit Losses	 	26,801	 	27,500	 	28,690	 	24,887	 	18,558	 	
Net Interest Income After Provision for Credit Losses	 	76,733	 	81,387	 	74,161	 	72,175	 	87,296	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	11,746	 	10,915	 	11,881	 	11,632	 	12,275	 	
Mortgage Banking	 	4,218	 	4,656	 	5,443	 	8,678	 	508	 	
Service Charges on Deposit Accounts	 	14,160	 	14,014	 	12,910	 	13,386	 	13,306	 	
Fees, Exchange, and Other Service Charges	 	14,935	 	14,801	 	15,410	 	14,976	 	14,897	 	
Investment Securities Gains (Losses), Net	 	25,707	 	(5	)	12	 	56	 	86	 	
Insurance	 	2,326	 	7,304	 	4,744	 	5,641	 	5,953	 	
Other	 	7,719	 	5,115	 	9,432	 	15,996	 	7,438	 	
Total Noninterest Income	 	80,811	 	56,800	 	59,832	 	70,365	 	54,463	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	50,973	 	46,387	 	44,180	 	47,028	 	43,737	 	
Net Occupancy	 	10,367	 	10,350	 	10,008	 	10,328	 	11,548	 	
Net Equipment	 	4,393	 	4,502	 	4,502	 	4,316	 	4,573	 	
Professional Fees	 	3,243	 	2,642	 	4,005	 	2,549	 	3,040	 	
FDIC Insurance	 	3,251	 	3,290	 	8,987	 	1,814	 	693	 	
Other	 	16,293	 	16,816	 	17,902	 	21,898	 	19,099	 	
Total Noninterest Expense	 	88,520	 	83,987	 	89,584	 	87,933	 	82,690	 	
Income Before Provision for Income Taxes	 	69,024	 	54,200	 	44,409	 	54,607	 	59,069	 	
Provision for Income Taxes	 	28,508	 	17,729	 	13,403	 	18,567	 	19,762	 	
Net Income	 	$	40,516	 	$	36,471	 	$	31,006	 	$	36,040	 	$	39,307	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Basic Earnings Per Share	 	$	0.85	 	$	0.76	 	$	0.65	 	$	0.76	 	$	0.83	 	
Diluted Earnings Per Share	 	$	0.84	 	$	0.76	 	$	0.65	 	$	0.75	 	$	0.82	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	$	5,759,785	 	$	5,931,358	 	$	6,149,911	 	$	6,338,726	 	$	6,530,233	 	
Total Assets	 	12,414,827	 	12,208,025	 	12,194,695	 	11,448,128	 	10,763,475	 	
Total Deposits	 	9,409,676	 	9,250,100	 	9,019,661	 	9,212,791	 	8,292,098	 	
Total Shareholders’ Equity	 	895,973	 	902,799	 	845,885	 	833,935	 	790,704	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.31	%	1.21	%	1.06	%	1.32	%	1.52	%	
Return on Average Shareholders’ Equity	 	16.91	 	16.44	 	14.49	 	17.86	 	19.56	 	
Efficiency Ratio (2)	 	48.02	 	50.69	 	55.07	 	52.52	 	51.58	 	
Net Interest Margin (3)	 	3.57	 	3.85	 	3.73	 	3.76	 	4.43	 	

(1)	Certain prior period information has been reclassified to conform to current presentation.	
(2)	The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).	
(3)	The net interest margin is defined as net interest income, on a fully-taxable equivalent basis, as a percentage of average earning assets.	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Hawaii Economic Trends	 	Table 14	
 
 	 	Eleven Months Ended	 	Year Ended	 	
(in thousands, except jobs)	 	November 30, 2009	 	December 31, 2008	 	December 31, 2007	 	
Hawaii Economic Trends	 	 	 	 	 	 	 	 	 	 	 	 	 	
State General Fund Revenues (1)	 	$	3,697.1	 	(12.5	)%	$	4,611.2	 	(1.5	)%	$	4,683.1	 	3.6	%	
General Excise and Use Tax Revenue (1)	 	$	2,124.5	 	(9.6	)	$	2,570.5	 	(2.0	)	$	2,623.5	 	6.8	 	
Jobs, seasonally adjusted (2)	 	607.5	 	(3.4	)	625.4	 	(0.7	)	630.1	 	1.0	 	
 
 	 	December 31,	 	September 30,	 	June 30,	 	December 31,	 	
(annual percentage, except 2009)	 	2009	 	2009	 	2009	 	2008	 	2007	 	
Unemployment(3)	 	 	 	 	 	 	 	 	 	 	 	
Statewide, seasonally adjusted	 	6.9	%	7.2	%	7.3	%	4.0	%	2.6	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Oahu	 	5.3	 	6.3	 	6.8	 	3.5	 	2.5	 	
Island of Hawaii	 	9.6	 	10.8	 	11.4	 	5.5	 	3.3	 	
Maui	 	8.8	 	9.7	 	10.0	 	4.5	 	2.8	 	
Kauai	 	8.9	 	9.6	 	11.0	 	4.4	 	2.5	 	
 
 	 	December 31,	 	September 30,	 	December 31,	 	
(percentage change, except months of inventory)	 	2009	 	2009	 	2008	 	2007	 	
Housing Trends (Single Family Oahu)(4)	 	 	 	 	 	 	 	 	 	
Median Home Price	 	(7.9	)%	(8.0	)%	(3.0	)%	2.1	%	
Home Sales Volume (units)	 	(5.7	)	(16.2	)	(24.4	)	(10.2	)	
Months of Inventory	 	4.2	 	5.3	 	8.0	 	6.0	 	
 
 	 	Monthly Visitor Arrivals,	 	Percentage Change	 	
(in thousands)	 	Seasonally Adjusted	 	from Previous Month	 	
Tourism(2)	 	 	 	 	 	
November 30, 2009	 	532.8	 	(0.8	)%	
October 31, 2009	 	537.3	 	(2.2	)	
September 30, 2009	 	549.2	 	2.8	 	
August 31, 2009	 	534.4	 	3.2	 	
July 31, 2009	 	517.7	 	2.5	 	
June 30, 2009	 	504.8	 	(9.0	)	
May 31, 2009	 	554.5	 	(0.1	)	
April 30, 2009	 	555.1	 	8.9	 	
March 31, 2009	 	509.6	 	(7.2	)	
February 28, 2009	 	549.4	 	1.7	 	
January 31, 2009	 	540.0	 	4.4	 	
December 31, 2008	 	517.4	 	(4.1	)	

(1)	Source: Hawaii Department of Business, Economic Development & Tourism.	
(2)	Source: University of Hawaii Economic Research Organization.	
(3)	Source: University of Hawaii Economic Research Organization, State of Hawaii Department of Labor and Industrial Relations.	
(4)	Source: Honolulu Board of REALTORS.