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 26, 2009	
 
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):
 
¨  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨  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 26, 2009, Bank of Hawaii Corporation announced its results of operations for the quarter ending December 31, 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 9.01.            Financial Statements and Exhibits
 
(d)         Exhibits
 
Exhibit No.	 	 	
 	 	 	
99.1	January 26, 2009 Press Release	

2

 
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 26, 2009	 	BANK OF HAWAII CORPORATION	

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

 

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 2008 Financial Results
 
·                  Diluted Earnings Per Share for 2008 Increases to $3.99
·                  Net Income for 2008 Increases to $192.2 Million
·                  Board of Directors Declares Dividend of $0.45 Per Share
 
FOR IMMEDIATE RELEASE
 
HONOLULU, HI (January 26, 2009) — Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share for the full year of 2008 of $3.99, up $0.30 or 8.1 percent from diluted earnings per share of $3.69 in 2007.  Net income for the year was $192.2 million, up $8.5 million or 4.6 percent from net income of $183.7 million in the previous year.  The return on average assets in 2008 was 1.84 percent, up from 1.75 percent in 2007.  The return on average equity for the year was 24.54 percent, down from 25.15 percent in 2007 as the result of an increase in capital levels.
 
“Bank of Hawaii Corporation finished 2008 with solid financial performance.  Our bank has a strong balance sheet with increased deposits, capital, liquidity and reserves,” said Allan R. Landon, Chairman and CEO.  “We anticipate that the challenging  economic environment will continue in 2009.  Bank of Hawaii is safe, balanced and ready to help our customers and communities address the challenges ahead.”
 
Diluted earnings per share for the fourth quarter of 2008 were $0.82, down $0.01 or 1.2 percent from $0.83 per diluted share for the same quarter last year.  Net income in the fourth quarter of 2008 was $39.3 million, down $1.6 million or 3.8 percent from net income of $40.9 million in the fourth quarter last year.
 
Financial Highlights
 
Net interest income, on a taxable equivalent basis, for the fourth quarter of 2008 was $106.1 million, up $6.4 million from net interest income of $99.7 million in the fourth quarter of 2007 and up $2.3 million from net interest income of $103.8 million in the third quarter of 2008.  Net interest income in the third quarter of 2008 included a $4.0 million reduction related to accounting for the pending settlement of income tax issues with the SILO leases.  Net interest
 
- more -
 
130 Merchant Street · PO Box 2900 · Honolulu HI 96846-6000 · Fax 808-694-8440 · Website www.boh.com

 
income, on a taxable equivalent basis, for the full year of 2008 was $419.7 million, up $23.8 million from $395.9 million in 2007.  Analyses of changes in net interest income are included in Tables 7a, 7b and 7c.
 
The net interest margin was 4.43 percent for the fourth quarter of 2008, a 31 basis point increase from 4.12 percent in the fourth quarter of 2007 and a 10 basis point increase from 4.33 percent in the third quarter of 2008.  The net interest margin for the full year of 2008 was 4.33 percent, a 25 basis point increase from 4.08 percent in 2007.
 
Results for the fourth quarter of 2008 included a provision for credit losses of $18.6 million compared to $5.4 million in the fourth quarter of 2007 and $20.4 million in the third quarter of 2008.  As previously mentioned, the provision exceeded net charge offs in the fourth quarter of 2008 by $8.0 million.  The provision for credit losses equaled net charge-offs in the fourth quarter of 2007 and exceeded net charge-offs by $13.0 million in the third quarter of 2008.  The provision for credit losses for the full year of 2008 was $60.5 million compared to $15.5 million in 2007.
 
Noninterest income was $54.5 million for the fourth quarter of 2008, a decrease of $5.8 million or 9.6 percent compared to noninterest income of $60.3 million in the fourth quarter of 2007 and down $2.5 million or 4.4 percent compared to noninterest income of $57.0 million in the third quarter of 2008.  The decrease compared to the previous quarter was largely due to a charge of $7.1 million due to the change in fair value of mortgage servicing rights offset by a $2.6 million increase in the fair value of trading securities, and a reduction of $1.9 million in trust and asset management fees.   Fourth quarter 2007 noninterest income included a gain of $3.1 million on the sale of unused real estate.  Noninterest income for the full year of 2008 was $258.1 million, up $17.6 million or 7.3 percent from noninterest income of $240.5 million in 2007.  Noninterest income for 2008 included a $13.7 million gain on the mandatory redemption of Visa shares and an increase of $9.3 million in gains on the disposal of lease equipment.  These gains were partially offset by a net reduction in the fair value of servicing rights and lower trust and asset management fees.
 
Noninterest expense was $82.7 million in the fourth quarter of 2008, down $9.3 million or 10.1 percent from noninterest expense of $92.0 million in the same quarter last year, and down $4.1 million or 4.7 percent from noninterest expense of $86.8 million in the previous quarter.  The decrease compared with the previous quarters was largely due to a reduction in salary and benefit expenses.  Noninterest expense for the full year of 2008 was $346.8 million, up $11.4 million or 3.4 percent from noninterest expense of $335.4 million in 2007.  The increase compared with the prior year was largely due to an increase in base salaries and employee incentives.  An analysis of salary and benefit expenses is included in Table 8.
 
The efficiency ratio for the fourth quarter of 2008 was 51.58 percent, down from 57.61 percent in the same quarter last year and down from 54.05 percent in the previous quarter.  The efficiency ratio for the full year of 2008 was 51.23 percent compared with 52.78 percent during the full year of 2007.
 
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.
 
2

 
Asset Quality
 
Credit quality reflected the trend of a weakening economy during the fourth quarter of 2008.  Non-accrual loans were $14.5 million at December 31, 2008, up from $5.1 million at December 31, 2007, and up from $5.6 million at September 30, 2008.  As a percentage of total loans and leases, non-accrual loans were 0.22 percent at December 31, 2008.  The increase in non-accrual loans was primarily in the commercial segment.  The largest component of the increase was a commercial construction loan on a residential project located on the mainland, which experienced sluggish sales.  This project is a participation with a mainland bank and one of the two non-Hawaii based projects in the commercial construction and development portfolio.  Total outstandings associated with these two projects were $6.5 million as of December 31, 2008.  The other commercial and industrial non-accrual loans are two Hawaii based companies that are experiencing difficulties due to the slowdown in local economic activity.
 
Net charge-offs during the fourth quarter of 2008 were $10.6 million or 0.64 percent annualized of total average loans and leases compared to $5.4 million in the fourth quarter last year and $7.4 million in the third quarter of 2008.  The increase in the fourth quarter of 2008 compared with the previous quarter reflects higher net losses in commercial credits, which partially offset a reduction in net consumer charge-offs.
 
Full year 2008 net charges-offs of $28.0 million were 0.43 percent of total average loans and leases.  Net charge-offs for 2008 were comprised of gross charge-offs of $35.3 million partially offset by recoveries of $7.3 million.  Net charge-offs for the full year of 2007 were $15.5 million, or 0.24 percent of total average loans and leases, and were comprised of gross charge-offs of $24.9 million partially offset by recoveries of $9.4 million.
 
The Company increased the allowance for loan and lease losses by $32.5 million during 2008, including $8.0 million in the fourth quarter, to reflect increased risk due to the overall softening of the economy, and risk in the credit and financial markets.  The allowance for loan and lease losses was $123.5 million at December 31, 2008, up from $91.0 million at December 31, 2007, and up from $115.5 million at September 30, 2008.  The ratio of the allowance for loan and lease losses to total loans was 1.89 percent at December 31, 2008, up from 1.38 percent at December 31, 2007 and up from 1.77 percent at September 30, 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 $10.76 billion at December 31, 2008, up $291 million from $10.47 billion at December 31, 2007 and up $428 million from $10.34 billion at September 30, 2008.  The growth in assets was largely due to an increase in the Company’s liquidity position in funds sold due to strong deposit generation during the fourth quarter of 2008.
 
Total loans and leases were $6.53 billion at December 31, 2008, down $51 million from $6.58 billion at December 31, 2007 and down $9 million from $6.54 billion at September 30, 2008.  Average loans and leases were $6.54 billion during the fourth quarter of 2008, down $44 million from $6.58 billion during the fourth quarter last year and up $25 million from $6.51 billion during the previous quarter.
 
3

 
Total commercial loans were $2.42 billion at December 31, 2008, up $37 million from $2.38 billion at December 31, 2007 and up $10 million from $2.41 billion at September 30, 2008.  Total consumer loans were $4.11 billion at December 31, 2008, down $88 million from $4.20 billion at December 31, 2007 and down $19 million from $4.13 billion at September 30, 2008.  The decrease in consumer loans during 2008 was largely due to a reduction in residential first mortgages, automobile lending, and unsecured installment loans, which offset growth in home equity lending.  Loan and lease portfolio balances are summarized in Table 9.
 
Total deposits at December 31, 2008 were $8.29 billion, up $350 million from $7.94 billion at December 31, 2007 and up $634 million from $7.66 billion at September 30, 2008.  The increase in deposits was largely due to strong growth in nearly every category during the fourth quarter of 2008.  During the fourth quarter, the net number of deposit accounts increased by approximately 1,600 accounts.
 
Consistent with the Company’s plans to build capital levels, only one thousand shares were repurchased during the fourth quarter of 2008 and no shares have been repurchased since the end of December 2008.  Remaining buyback authority under the share repurchase program was $85.4 million at December 31, 2008.
 
At December 31, 2008, the Tier 1 leverage ratio was 7.30 percent compared to 7.02 percent at December 31, 2007 and 7.27 percent at September 30, 2008.
 
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 13, 2009 to shareholders of record at the close of business on February 27, 2009.
 
Hawaii Economy
 
The Hawaii economy continued to weaken during the fourth quarter of 2008.  Visitor arrivals, which were up in the first quarter of 2008, decreased 11.7 percent during April to November 2008 compared with a year earlier.  Unemployment increased to 5.0 percent in November 2008, up from 2.6 percent at the end of 2007.  Single-family median existing home sales prices in the fourth quarter of 2008 were down 1.5 percent from the fourth quarter of 2007 and down 4.2 percent from the cyclical peak between mid-2006 and mid-2007.  However, home prices in Hawaii were down more modestly in the fourth quarter of 2008 than across the U.S. mainland, and overall mortgage delinquency, at 4.04 percent in the third quarter of 2008, was relatively low compared to the U.S. mainland.
 
Business Outlook
 
Bank of Hawaii begins 2009 with a cautious business plan, given the expectation of continued economic weakness and uncertainty.  The Bank will focus on maintaining high levels of liquidity, strong capital and reserves as well as disciplined lending and investment.  Bank of Hawaii has the resources to increase lending and investment when market conditions improve.  Special emphasis will be given to workforce productivity, technology and service enhancement, and management of risk and expenses.  Given the uncertain business environment, it is impractical to set expectations for returns in 2009.  Bank of Hawaii remains committed to producing superior financial performance over time with priority given to soundness and timely resolution of credit issues.
 
4

 
Conference Call Information
 
The Company will review its 2008 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 866-700-6979.  International participants should call 617-213-8836.  No passcode is required.  A replay of the conference call will be available for one week beginning Monday, January 26, 2009 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the number 18184581 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 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 .
 
# # # #
 
5

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Financial Highlights (Unaudited)	 	Table 1	
 
 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands, except per share amounts)	 	2008	 	2008	 	2007	 	2008	 	2007	 	
For the Period:	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	105,854	 	$	103,575	 	$	99,447	 	$	418,777	 	$	395,018	 	
Provision for Credit Losses	 	18,558	 	20,358	 	5,443	 	60,515	 	15,507	 	
Total Noninterest Income	 	54,463	 	56,986	 	60,257	 	258,113	 	240,487	 	
Total Noninterest Expense	 	82,690	 	86,790	 	92,002	 	346,774	 	335,407	 	
Net Income	 	39,307	 	47,409	 	40,860	 	192,213	 	183,703	 	
Basic Earnings Per Share	 	0.83	 	1.00	 	0.84	 	4.03	 	3.75	 	
Diluted Earnings Per Share	 	0.82	 	0.99	 	0.83	 	3.99	 	3.69	 	
Dividends Declared Per Share	 	0.45	 	0.44	 	0.44	 	1.77	 	1.67	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Net Income to Average Total Assets	 	1.52	%	1.82	%	1.55	%	1.84	%	1.75	%	
Net Income to Average Shareholders’ Equity	 	19.56	 	24.17	 	21.51	 	24.54	 	25.15	 	
Efficiency Ratio1	 	51.58	 	54.05	 	57.61	 	51.23	 	52.78	 	
Operating Leverage2	 	5.23	 	(12.02	)	(13.59	)	10.00	 	0.76	 	
Net Interest Margin3	 	4.43	 	4.33	 	4.12	 	4.33	 	4.08	 	
Dividend Payout Ratio4	 	54.22	 	44.00	 	52.38	 	43.92	 	44.53	 	
Effective Tax Rate	 	33.46	 	11.24	 	34.37	 	28.70	 	35.45	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases	 	$	6,537,134	 	$	6,512,453	 	$	6,581,183	 	$	6,542,178	 	$	6,561,584	 	
Average Assets	 	10,307,814	 	10,339,490	 	10,446,262	 	10,448,223	 	10,472,097	 	
Average Deposits	 	7,724,309	 	7,772,535	 	7,802,750	 	7,851,327	 	7,887,500	 	
Average Shareholders’ Equity	 	799,387	 	780,334	 	753,499	 	783,114	 	730,330	 	
Average Shareholders’ Equity to Average Assets	 	7.76	%	7.55	%	7.21	%	7.50	%	6.97	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Market Price Per Share of Common Stock:	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Closing	 	$	45.17	 	$	53.45	 	$	51.14	 	$	45.17	 	$	51.14	 	
High	 	57.81	 	70.00	 	55.94	 	70.00	 	55.94	 	
Low	 	36.32	 	37.46	 	47.56	 	36.32	 	46.05	 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	December 31,	 	September 30,	 	December 31,	 	
 	 	 	 	 	 	2008	 	2008	 	2007	 	
As of Period End:	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	 	 	 	 	$	6,530,233	 	$	6,539,458	 	$	6,580,861	 	
Total Assets	 	 	 	 	 	10,763,475	 	10,335,047	 	10,472,942	 	
Total Deposits	 	 	 	 	 	8,292,098	 	7,658,484	 	7,942,372	 	
Long-Term Debt	 	 	 	 	 	203,285	 	204,616	 	235,371	 	
Total Shareholders’ Equity	 	 	 	 	 	790,704	 	780,020	 	750,255	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Non-Performing Assets	 	 	 	 	 	$	14,949	 	$	5,927	 	$	5,286	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Allowance to Loans and Leases Outstanding	 	 	 	 	 	1.89	%	1.77	%	1.38	%	
Leverage Ratio5	 	 	 	 	 	7.30	 	7.27	 	7.02	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Book Value Per Common Share	 	 	 	 	 	$	16.56	 	$	16.35	 	$	15.44	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Full-Time Equivalent Employees	 	 	 	 	 	2,581	 	2,573	 	2,594	 	
Branches and Offices	 	 	 	 	 	85	 	84	 	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.
5    Leverage ratio as of December 31, 2007 was corrected from 7.04%.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Net Significant Income (Expense) Items (Unaudited)	 	Table 2	
 
 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands)	 	2008	 	2008	 	2007	 	2008	 	2007	 	
SILO Leveraged Lease	 	$	-	 	$	(3,981	)	$	-	 	$	(3,981	)	$	-	 	
LILO Leveraged Lease	 	-	 	-	 	-	 	-	 	1,098	 	
Gain on Mandatory Redemption of Visa Shares	 	-	 	-	 	-	 	13,737	 	-	 	
Gain on Disposal of Leased Equipment	 	-	 	-	 	-	 	11,588	 	2,275	 	
Gain on Sale of Real Estate	 	-	 	-	 	3,095	 	-	 	3,095	 	
Increase in Allowance for Loan and Lease Losses	 	(8,000	)	(13,000	)	-	 	(30,000	)	-	 	
Cash for Stock Grants	 	-	 	-	 	-	 	(4,640	)	-	 	
Employee Incentive Awards	 	-	 	(2,000	)	-	 	(2,000	)	-	 	
Legal Contingencies and Fraud Loss	 	-	 	-	 	(1,756	)	(3,016	)	(1,756	)	
Bank of Hawaii Charitable Foundation and Other Contributions	 	-	 	-	 	-	 	(2,250	)	-	 	
Call Premium on Capital Securities	 	-	 	-	 	-	 	(991	)	-	 	
Separation Expense	 	-	 	-	 	-	 	(615	)	-	 	
Reversal (Accrual) of Visa Legal Costs	 	-	 	-	 	(5,649	)	5,649	 	(5,649	)	
Significant Income (Expense) Items Before the Benefit for Income Taxes	 	(8,000	)	(18,981	)	(4,310	)	(16,519	)	(937	)	
Benefit for Income Taxes Related to SILO/LILO Transactions	 	-	 	(12,920	)	-	 	(12,920	)	(377	)	
Benefit for Income Taxes	 	(2,800	)	(5,250	)	(1,481	)	(9,864	)	(654	)	
Net Significant Income (Expense) Items	 	$	(5,200	)	$	(811	)	$	(2,829	)	$	6,265	 	$	94	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Income (Unaudited)	 	Table 3	
 
 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands, except per share amounts)	 	2008	 	2008	 	2007	 	2008	 	2007	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	95,598	 	$	92,744	 	$	111,270	 	$	390,714	 	$	446,381	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	1,152	 	1,174	 	814	 	4,695	 	4,903	 	
Available-for-Sale	 	34,352	 	35,152	 	33,591	 	139,076	 	129,601	 	
Held-to-Maturity	 	2,735	 	2,870	 	3,440	 	11,877	 	14,935	 	
Deposits	 	25	 	33	 	309	 	457	 	1,549	 	
Funds Sold	 	48	 	141	 	356	 	1,601	 	3,050	 	
Other	 	276	 	490	 	395	 	1,681	 	1,456	 	
Total Interest Income	 	134,186	 	132,604	 	150,175	 	550,101	 	601,875	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	16,960	 	17,736	 	33,158	 	82,399	 	137,847	 	
Securities Sold Under Agreements to Repurchase	 	7,984	 	7,675	 	11,754	 	33,764	 	47,031	 	
Funds Purchased	 	175	 	507	 	1,936	 	1,585	 	5,965	 	
Short-Term Borrowings	 	103	 	13	 	91	 	162	 	356	 	
Long-Term Debt	 	3,110	 	3,098	 	3,789	 	13,414	 	15,658	 	
Total Interest Expense	 	28,332	 	29,029	 	50,728	 	131,324	 	206,857	 	
Net Interest Income	 	105,854	 	103,575	 	99,447	 	418,777	 	395,018	 	
Provision for Credit Losses	 	18,558	 	20,358	 	5,443	 	60,515	 	15,507	 	
Net Interest Income After Provision for Credit Losses	 	87,296	 	83,217	 	94,004	 	358,262	 	379,511	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	12,275	 	14,193	 	15,812	 	57,014	 	62,926	 	
Mortgage Banking	 	508	 	621	 	2,027	 	8,164	 	11,725	 	
Service Charges on Deposit Accounts	 	13,306	 	13,045	 	12,302	 	50,845	 	46,260	 	
Fees, Exchange, and Other Service Charges	 	16,256	 	16,991	 	16,743	 	66,524	 	65,825	 	
Investment Securities Gains, Net	 	86	 	159	 	105	 	532	 	1,485	 	
Insurance	 	5,953	 	5,902	 	4,629	 	24,575	 	23,177	 	
Other	 	6,079	 	6,075	 	8,639	 	50,459	 	29,089	 	
Total Noninterest Income	 	54,463	 	56,986	 	60,257	 	258,113	 	240,487	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	43,737	 	46,764	 	45,928	 	191,958	 	180,865	 	
Net Occupancy	 	11,548	 	11,795	 	10,300	 	45,129	 	40,073	 	
Net Equipment	 	4,573	 	4,775	 	4,745	 	18,143	 	19,274	 	
Professional Fees	 	3,040	 	3,270	 	3,695	 	11,511	 	11,206	 	
Other	 	19,792	 	20,186	 	27,334	 	80,033	 	83,989	 	
Total Noninterest Expense	 	82,690	 	86,790	 	92,002	 	346,774	 	335,407	 	
Income Before Provision for Income Taxes	 	59,069	 	53,413	 	62,259	 	269,601	 	284,591	 	
Provision for Income Taxes	 	19,762	 	6,004	 	21,399	 	77,388	 	100,888	 	
Net Income	 	$	39,307	 	$	47,409	 	$	40,860	 	$	192,213	 	$	183,703	 	
Basic Earnings Per Share	 	$	0.83	 	$	1.00	 	$	0.84	 	$	4.03	 	$	3.75	 	
Diluted Earnings Per Share	 	$	0.82	 	$	0.99	 	$	0.83	 	$	3.99	 	$	3.69	 	
Dividends Declared Per Share	 	$	0.45	 	$	0.44	 	$	0.44	 	$	1.77	 	$	1.67	 	
Basic Weighted Average Shares	 	47,481,779	 	47,518,078	 	48,525,708	 	47,674,000	 	49,033,208	 	
Diluted Weighted Average Shares	 	47,927,532	 	48,057,965	 	49,301,825	 	48,200,650	 	49,833,546	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Condition (Unaudited)	 	Table 4	
 
 	 	December 31,	 	September 30,	 	December 31,	 	
(dollars in thousands)	 	2008	 	2008 1	 	2007 1	 	
Assets	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	5,094	 	$	13,845	 	$	4,870	 	
Funds Sold	 	405,789	 	-   	 	15,000	 	
Investment Securities	 	 	 	 	 	 	 	
Trading	 	91,500	 	90,993	 	67,286	 	
Available-for-Sale	 	2,519,239	 	2,572,111	 	2,563,190	 	
Held-to-Maturity (Fair value of $242,175; $245,720; and $287,644)	 	239,635	 	249,083	 	292,577	 	
Loans Held for Sale	 	21,540	 	14,903	 	12,341	 	
Loans and Leases	 	6,530,233	 	6,539,458	 	6,580,861	 	
Allowance for Loan and Lease Losses	 	(123,498	)	(115,498	)	(90,998	)	
Net Loans and Leases	 	6,406,735	 	6,423,960	 	6,489,863	 	
Total Earning Assets	 	9,689,532	 	9,364,895	 	9,445,127	 	
Cash and Noninterest-Bearing Deposits	 	385,599	 	285,762	 	368,402	 	
Premises and Equipment	 	116,120	 	118,333	 	117,177	 	
Customers’ Acceptances	 	1,308	 	1,250	 	1,112	 	
Accrued Interest Receivable	 	39,905	 	41,061	 	45,261	 	
Foreclosed Real Estate	 	428	 	293	 	184	 	
Mortgage Servicing Rights	 	21,057	 	27,707	 	27,588	 	
Goodwill	 	34,959	 	34,959	 	34,959	 	
Other Assets	 	474,567	 	460,787	 	433,132	 	
Total Assets	 	$	10,763,475	 	$	10,335,047	 	$	10,472,942	 	
 	 	 	 	 	 	 	 	
Liabilities	 	 	 	 	 	 	 	
Deposits	 	 	 	 	 	 	 	
Noninterest-Bearing Demand	 	$	1,754,724	 	$	1,592,251	 	$	1,935,639	 	
Interest-Bearing Demand	 	1,854,611	 	1,708,183	 	1,576,443	 	
Savings	 	3,104,863	 	2,780,798	 	2,688,703	 	
Time	 	1,577,900	 	1,577,252	 	1,741,587	 	
Total Deposits	 	8,292,098	 	7,658,484	 	7,942,372	 	
Funds Purchased	 	15,734	 	189,700	 	75,400	 	
Short-Term Borrowings	 	4,900	 	10,621	 	10,427	 	
Securities Sold Under Agreements to Repurchase	 	1,028,835	 	1,109,431	 	1,029,340	 	
Long-Term Debt (includes $119,275 and $120,598 carried at fair value as of December 31, 2008 and September 30, 2008, respectively)	 	203,285	 	204,616	 	235,371	 	
Banker’s Acceptances	 	1,308	 	1,250	 	1,112	 	
Retirement Benefits Payable	 	54,776	 	22,438	 	29,984	 	
Accrued Interest Payable	 	13,837	 	12,702	 	20,476	 	
Taxes Payable and Deferred Taxes	 	229,699	 	240,795	 	278,218	 	
Other Liabilities	 	128,299	 	104,990	 	99,987	 	
Total Liabilities	 	9,972,771	 	9,555,027	 	9,722,687	 	
Shareholders’ Equity	 	 	 	 	 	 	 	
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: December 2008 - 57,019,887 / 47,753,371; September 2008 - 57,022,797 / 47,707,629; and December 2007 - 56,995,447 / 48,589,645)	 	568	 	568	 	567	 	
Capital Surplus	 	492,515	 	491,419	 	484,790	 	
Accumulated Other Comprehensive Loss	 	(28,888	)	(18,643	)	(5,091	)	
Retained Earnings	 	787,924	 	770,373	 	688,638	 	
Treasury Stock, at Cost (Shares: December 2008 - 9,266,516; September 2008 - 9,315,168; and December 2007 - 8,405,802)	 	(461,415	)	(463,697	)	(418,649	)	
Total Shareholders’ Equity	 	790,704	 	780,020	 	750,255	 	
Total Liabilities and Shareholders’ Equity	 	$	10,763,475	 	$	10,335,047	 	$	10,472,942	 	
 
1    Certain prior period information has been reclassified to conform to current presentation.

 
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	 	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 for Pension and Postretirement Benefit Plans	 	59	 	-	 	-	 	59	 	-	 	-	 	59	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	168,416	 	
Share-Based Compensation	 	5,808	 	-	 	5,808	 	-	 	-	 	-	 	 	 	
Net Tax Benefits related to Share-Based Compensation	 	1,694	 	-	 	1,694	 	-	 	-	 	-	 	 	 	
Common Stock Issued under Purchase and Equity Compensation Plans (431,254 shares)	 	14,137	 	1	 	223	 	-	 	(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	)	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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	 	183,703	 	-	 	-	 	-	 	183,703	 	-	 	$	183,703	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	 	20,824	 	-	 	-	 	20,824	 	-	 	-	 	20,824	 	
Unamortized Gain Related to Defined Benefit Plans	 	7,034	 	-	 	-	 	7,034	 	-	 	-	 	7,034	 	
Amortization of Net Loss for Pension and Postretirement Benefit Plans	 	856	 	-	 	-	 	856	 	-	 	-	 	856	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	212,417	 	
Share-Based Compensation	 	5,724	 	-	 	5,724	 	-	 	-	 	-	 	 	 	
Net Tax Benefits related to Share-Based Compensation	 	3,491	 	-	 	3,491	 	-	 	-	 	-	 	 	 	
Common Stock Issued under Purchase and Equity Compensation Plans (749,327 shares)	 	20,457	 	1	 	397	 	-	 	(8,848	)	28,907	 	 	 	
Common Stock Repurchased (1,933,964 shares)	 	(99,656	)	-	 	-	 	-	 	-	 	(99,656	)	 	 	
Cash Dividends Paid	 	(82,371	)	-	 	-	 	-	 	(82,371	)	-	 	 	 	 	
Balance as of December 31, 2007	 	$	750,255	 	$	567	 	$	484,790	 	$	(5,091	)	$	688,638	 	$	(418,649	)	 	 	 	

 
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	 	
 	 	December 31, 2008	 	September 30, 2008 1	 	December 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	 	$	13.9	 	$	-   	 	0.71	%	$	6.4	 	$	-   	 	2.06	%	$	24.1	 	$	0.3	 	5.03	%	
Funds Sold	 	66.6	 	-   	 	0.28	 	28.4	 	0.1	 	1.96	 	33.3	 	0.4	 	4.19	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	90.6	 	1.2	 	5.09	 	92.6	 	1.2	 	5.07	 	81.0	 	0.8	 	4.02	 	
Available-for-Sale	 	2,535.6	 	34.6	 	5.46	 	2,601.2	 	35.4	 	5.44	 	2,568.2	 	33.9	 	5.27	 	
Held-to-Maturity	 	244.7	 	2.7	 	4.47	 	255.4	 	2.9	 	4.50	 	300.4	 	3.4	 	4.58	 	
Loans Held for Sale	 	8.8	 	0.1	 	5.54	 	6.6	 	0.1	 	6.34	 	8.0	 	0.1	 	6.52	 	
Loans and Leases2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	1,071.1	 	13.7	 	5.08	 	1,049.7	 	13.8	 	5.23	 	1,041.2	 	19.1	 	7.28	 	
Commercial Mortgage	 	724.6	 	10.8	 	5.94	 	695.3	 	10.5	 	6.04	 	633.4	 	10.8	 	6.79	 	
Construction	 	155.7	 	2.1	 	5.37	 	161.4	 	2.3	 	5.67	 	238.6	 	4.5	 	7.50	 	
Commercial Lease Financing	 	466.1	 	4.9	 	4.21	 	472.9	 	0.2	 	0.15	 	478.1	 	4.0	 	3.32	 	
Residential Mortgage	 	2,468.1	 	37.2	 	6.02	 	2,480.7	 	37.6	 	6.05	 	2,487.6	 	38.2	 	6.14	 	
Home Equity	 	1,019.6	 	13.9	 	5.41	 	994.6	 	14.4	 	5.77	 	982.8	 	18.1	 	7.33	 	
Automobile	 	382.3	 	7.7	 	8.02	 	403.6	 	8.2	 	8.09	 	444.4	 	9.2	 	8.23	 	
Other3	 	249.6	 	5.2	 	8.36	 	254.3	 	5.6	 	8.80	 	275.1	 	7.2	 	10.33	 	
Total Loans and Leases	 	6,537.1	 	95.5	 	5.82	 	6,512.5	 	92.6	 	5.67	 	6,581.2	 	111.1	 	6.72	 	
Other	 	79.7	 	0.3	 	1.38	 	79.6	 	0.5	 	2.46	 	79.5	 	0.4	 	1.99	 	
Total Earning Assets4	 	9,577.0	 	134.4	 	5.60	 	9,582.7	 	132.8	 	5.53	 	9,675.7	 	150.4	 	6.19	 	
Cash and Noninterest-Bearing Deposits	 	252.3	 	 	 	 	 	274.3	 	 	 	 	 	284.9	 	 	 	 	 	
Other Assets	 	478.5	 	 	 	 	 	482.5	 	 	 	 	 	485.7	 	 	 	 	 	
Total Assets	 	$	10,307.8	 	 	 	 	 	$	10,339.5	 	 	 	 	 	$	10,446.3	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,747.3	 	0.7	 	0.16	 	$	1,793.0	 	1.5	 	0.32	 	$	1,487.0	 	3.1	 	0.84	 	
Savings	 	2,827.9	 	6.4	 	0.90	 	2,790.3	 	6.3	 	0.90	 	2,735.2	 	13.0	 	1.88	 	
Time	 	1,561.6	 	9.8	 	2.51	 	1,594.8	 	9.9	 	2.48	 	1,731.7	 	17.0	 	3.91	 	
Total Interest-Bearing Deposits	 	6,136.8	 	16.9	 	1.10	 	6,178.1	 	17.7	 	1.14	 	5,953.9	 	33.1	 	2.21	 	
Short-Term Borrowings	 	166.4	 	0.3	 	0.66	 	116.7	 	0.5	 	1.74	 	175.2	 	2.0	 	4.53	 	
Securities Sold Under Agreements to Repurchase	 	1,032.2	 	8.0	 	3.04	 	1,077.4	 	7.7	 	2.80	 	1,052.8	 	11.8	 	4.40	 	
Long-Term Debt	 	204.0	 	3.1	 	6.09	 	205.1	 	3.1	 	6.04	 	235.4	 	3.8	 	6.43	 	
Total Interest-Bearing Liabilities	 	7,539.4	 	28.3	 	1.49	 	7,577.3	 	29.0	 	1.52	 	7,417.3	 	50.7	 	2.71	 	
Net Interest Income	 	 	 	$	106.1	 	 	 	 	 	$	103.8	 	 	 	 	 	$	99.7	 	 	 	
Interest Rate Spread	 	 	 	 	 	4.11	%	 	 	 	 	4.01	%	 	 	 	 	3.48	%	
Net Interest Margin	 	 	 	 	 	4.43	%	 	 	 	 	4.33	%	 	 	 	 	4.12	%	
Noninterest-Bearing Demand Deposits	 	1,587.5	 	 	 	 	 	1,594.4	 	 	 	 	 	1,848.9	 	 	 	 	 	
Other Liabilities	 	381.5	 	 	 	 	 	387.5	 	 	 	 	 	426.6	 	 	 	 	 	
Shareholders’ Equity	 	799.4	 	 	 	 	 	780.3	 	 	 	 	 	753.5	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	10,307.8	 	 	 	 	 	$	10,339.5	 	 	 	 	 	$	10,446.3	 	 	 	 	 	
 
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 $234,000, $234,000, and $237,000 for the three months ended December 31, 2008, September 30, 2008, and December 31, 2007, respectively.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Average Balances and Interest Rates - Taxable Equivalent Basis (Unaudited)	 	Table 6b	
 
 	 	Year Ended	 	Year Ended	 	
 	 	December 31, 2008	 	December 31, 2007 1	 	
 	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	
(dollars in millions)	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	20.1	 	$	0.4	 	2.27	%	$	29.3	 	$	1.5	 	5.28	%	
Funds Sold	 	78.6	 	1.6	 	2.04	 	60.3	 	3.1	 	5.06	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	94.1	 	4.7	 	4.99	 	122.6	 	4.9	 	4.00	 	
Available-for-Sale	 	2,604.4	 	140.0	 	5.38	 	2,516.7	 	130.5	 	5.19	 	
Held-to-Maturity	 	263.7	 	11.9	 	4.50	 	329.5	 	14.9	 	4.53	 	
Loans Held for Sale	 	8.8	 	0.5	 	5.72	 	9.0	 	0.6	 	6.43	 	
Loans and Leases2	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	1,061.7	 	58.4	 	5.50	 	1,054.8	 	78.1	 	7.40	 	
Commercial Mortgage	 	683.1	 	41.9	 	6.14	 	624.5	 	42.5	 	6.81	 	
Construction	 	173.4	 	10.3	 	5.93	 	250.1	 	19.6	 	7.86	 	
Commercial Lease Financing	 	471.8	 	13.2	 	2.80	 	470.3	 	15.0	 	3.19	 	
Residential Mortgage	 	2,484.9	 	150.9	 	6.07	 	2,488.2	 	152.5	 	6.13	 	
Home Equity	 	997.9	 	58.9	 	5.90	 	961.4	 	72.7	 	7.56	 	
Automobile	 	411.8	 	33.4	 	8.11	 	432.0	 	35.3	 	8.18	 	
Other3	 	257.6	 	23.2	 	9.01	 	280.3	 	30.1	 	10.72	 	
Total Loans and Leases	 	6,542.2	 	390.2	 	5.96	 	6,561.6	 	445.8	 	6.79	 	
Other	 	79.6	 	1.7	 	2.11	 	79.4	 	1.5	 	1.83	 	
Total Earning Assets 4	 	9,691.5	 	551.0	 	5.69	 	9,708.4	 	602.8	 	6.21	 	
Cash and Noninterest-Bearing Deposits	 	273.3	 	 	 	 	 	288.9	 	 	 	 	 	
Other Assets	 	483.4	 	 	 	 	 	474.8	 	 	 	 	 	
Total Assets	 	$	10,448.2	 	 	 	 	 	$	10,472.1	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,663.7	 	5.5	 	0.33	 	$	1,521.7	 	15.3	 	1.01	 	
Savings	 	2,808.7	 	28.6	 	1.02	 	2,745.8	 	54.1	 	1.97	 	
Time	 	1,637.2	 	48.3	 	2.95	 	1,728.4	 	68.4	 	3.96	 	
Total Interest-Bearing Deposits	 	6,109.6	 	82.4	 	1.35	 	5,995.9	 	137.8	 	2.30	 	
Short-Term Borrowings	 	106.2	 	1.7	 	1.65	 	127.9	 	6.3	 	4.94	 	
Securities Sold Under Agreements to Repurchase	 	1,083.3	 	33.8	 	3.12	 	1,044.8	 	47.0	 	4.50	 	
Long-Term Debt	 	218.2	 	13.4	 	6.15	 	251.9	 	15.8	 	6.22	 	
Total Interest-Bearing Liabilities	 	7,517.3	 	131.3	 	1.75	 	7,420.5	 	206.9	 	2.79	 	
Net Interest Income	 	 	 	$	419.7	 	 	 	 	 	$	395.9	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.94	%	 	 	 	 	3.42	%	
Net Interest Margin	 	 	 	 	 	4.33	%	 	 	 	 	4.08	%	
Noninterest-Bearing Demand Deposits	 	1,741.8	 	 	 	 	 	1,891.6	 	 	 	 	 	
Other Liabilities	 	406.0	 	 	 	 	 	429.7	 	 	 	 	 	
Shareholders’ Equity	 	783.1	 	 	 	 	 	730.3	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	10,448.2	 	 	 	 	 	$	10,472.1	 	 	 	 	 	
 
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 $945,000 and $923,000 for the year ended December 31, 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 December 31, 2008	 	
 	 	Compared to September 30, 2008	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	0.1	 	$	(0.2	)	$	(0.1	)	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	(0.9	)	0.1	 	(0.8	)	
Held-to-Maturity	 	(0.1	)	(0.1	)	(0.2	)	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	0.3	 	(0.4	)	(0.1	)	
Commercial Mortgage	 	0.4	 	(0.1	)	0.3	 	
Construction	 	(0.1	)	(0.1	)	(0.2	)	
Commercial Lease Financing	 	-	 	4.7	 	4.7	 	
Residential Mortgage	 	(0.2	)	(0.2	)	(0.4	)	
Home Equity	 	0.4	 	(0.9	)	(0.5	)	
Automobile	 	(0.4	)	(0.1	)	(0.5	)	
Other2	 	(0.1	)	(0.3	)	(0.4	)	
Total Loans and Leases	 	0.3	 	2.6	 	2.9	 	
Other	 	-	 	(0.2	)	(0.2	)	
Total Change in Interest Income	 	(0.6	)	2.2	 	1.6	 	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	(0.1	)	(0.7	)	(0.8	)	
Savings	 	0.1	 	-	 	0.1	 	
Time	 	(0.2	)	0.1	 	(0.1	)	
Total Interest-Bearing Deposits	 	(0.2	)	(0.6	)	(0.8	)	
Short-Term Borrowings	 	0.2	 	(0.4	)	(0.2	)	
Securities Sold Under Agreements to Repurchase	 	(0.3	)	0.6	 	0.3	 	
Total Change in Interest Expense	 	(0.3	)	(0.4	)	(0.7	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	(0.3	)	$	2.6	 	$	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 (Unaudited)	 	Table 7b	
 
 	 	Three Months Ended December 31, 2008	 	
 	 	Compared to December 31, 2007	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	(0.1	)	$	(0.2	)	$	(0.3	)	
Funds Sold	 	0.2	 	(0.6	)	(0.4	)	
Investment Securities	 	 	 	 	 	 	 	
Trading	 	0.1	 	0.3	 	0.4	 	
Available-for-Sale	 	(0.4	)	1.1	 	0.7	 	
Held-to-Maturity	 	(0.6	)	(0.1	)	(0.7	)	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	0.5	 	(5.9	)	(5.4	)	
Commercial Mortgage	 	1.4	 	(1.4	)	-	 	
Construction	 	(1.3	)	(1.1	)	(2.4	)	
Commercial Lease Financing	 	(0.1	)	1.0	 	0.9	 	
Residential Mortgage	 	(0.3	)	(0.7	)	(1.0	)	
Home Equity	 	0.7	 	(4.9	)	(4.2	)	
Automobile	 	(1.3	)	(0.2	)	(1.5	)	
Other2	 	(0.7	)	(1.3	)	(2.0	)	
Total Loans and Leases	 	(1.1	)	(14.5	)	(15.6	)	
Other	 	-	 	(0.1	)	(0.1	)	
Total Change in Interest Income	 	(1.9	)	(14.1	)	(16.0	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	0.5	 	(2.9	)	(2.4	)	
Savings	 	0.4	 	(7.0	)	(6.6	)	
Time	 	(1.6	)	(5.6	)	(7.2	)	
Total Interest-Bearing Deposits	 	(0.7	)	(15.5	)	(16.2	)	
Short-Term Borrowings	 	(0.1	)	(1.6	)	(1.7	)	
Securities Sold Under Agreements to Repurchase	 	(0.2	)	(3.6	)	(3.8	)	
Long-Term Debt	 	(0.5	)	(0.2	)	(0.7	)	
Total Change in Interest Expense	 	(1.5	)	(20.9	)	(22.4	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	(0.4	)	$	6.8	 	$	6.4	 	
 
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 (Unaudited)	 	Table 7c	
 
 	 	Year Ended December 31, 2008	 	
 	 	Compared to December 31, 2007	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Time 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	(0.4	)	$	(0.7	)	$	-	 	$	(1.1	)	
Funds Sold	 	0.7	 	(2.2	)	-	 	(1.5	)	
Investment Securities	 	 	 	 	 	 	 	 	 	
Trading	 	(1.3	)	1.1	 	-	 	(0.2	)	
Available-for-Sale	 	4.6	 	4.9	 	-	 	9.5	 	
Held-to-Maturity	 	(2.9	)	(0.1	)	-	 	(3.0	)	
Loans Held for Sale	 	-	 	(0.1	)	-	 	(0.1	)	
Loans and Leases	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	0.5	 	(20.4	)	0.2	 	(19.7	)	
Commercial Mortgage	 	3.7	 	(4.4	)	0.1	 	(0.6	)	
Construction	 	(5.2	)	(4.2	)	0.1	 	(9.3	)	
Commercial Lease Financing	 	0.1	 	(1.9	)	-	 	(1.8	)	
Residential Mortgage	 	(0.2	)	(1.4	)	-	 	(1.6	)	
Home Equity	 	2.6	 	(16.6	)	0.2	 	(13.8	)	
Automobile	 	(1.7	)	(0.3	)	0.1	 	(1.9	)	
Other2	 	(2.3	)	(4.7	)	0.1	 	(6.9	)	
Total Loans and Leases	 	(2.5	)	(53.9	)	0.8	 	(55.6	)	
Other	 	-	 	0.2	 	-	 	0.2	 	
Total Change in Interest Income	 	(1.8	)	(50.8	)	0.8	 	(51.8	)	
 	 	 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	
Demand	 	1.4	 	(11.2	)	-	 	(9.8	)	
Savings	 	1.2	 	(26.9	)	0.2	 	(25.5	)	
Time	 	(3.5	)	(16.8	)	0.2	 	(20.1	)	
Total Interest-Bearing Deposits	 	(0.9	)	(54.9	)	0.4	 	(55.4	)	
Short-Term Borrowings	 	(0.9	)	(3.7	)	-	 	(4.6	)	
Securities Sold Under Agreements to Repurchase	 	1.7	 	(15.0	)	0.1	 	(13.2	)	
Long-Term Debt	 	(2.2	)	(0.2	)	-	 	(2.4	)	
Total Change in Interest Expense	 	(2.3	)	(73.8	)	0.5	 	(75.6	)	
 	 	 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	0.5	 	$	23.0	 	$	0.3	 	$	23.8	 	
 
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	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands)	 	2008	 	2008	 	2007 1	 	2008	 	2007 1	 	
Salaries	 	$	31,328	 	$	30,190	 	$	29,630	 	$	120,440	 	$	115,856	 	
Incentive Compensation	 	3,011	 	5,969	 	3,728	 	19,369	 	15,505	 	
Cash for Stock Grants	 	-	 	-	 	-	 	4,640	 	-	 	
Share-Based Compensation	 	1,097	 	1,180	 	2,169	 	5,049	 	6,330	 	
Commission Expense	 	1,423	 	1,653	 	1,744	 	6,941	 	7,444	 	
Retirement and Other Benefits	 	2,838	 	3,097	 	4,132	 	14,660	 	15,131	 	
Payroll Taxes	 	2,108	 	2,162	 	2,025	 	10,175	 	9,910	 	
Medical, Dental, and Life Insurance	 	1,589	 	2,452	 	2,464	 	9,010	 	9,289	 	
Separation Expense	 	343	 	61	 	36	 	1,674	 	1,400	 	
Total Salaries and Benefits	 	$	43,737	 	$	46,764	 	$	45,928	 	$	191,958	 	$	180,865	 	
 
1    Certain prior period information has been reclassified to conform to current presentation.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Loan and Lease Portfolio Balances (Unaudited)	 	Table 9	
 
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands)	 	2008	 	2008 1	 	2008 1	 	2008 1	 	2007 1	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	1,053,781	 	$	1,077,314	 	$	1,052,319	 	$	1,079,772	 	$	1,054,355	 	
Commercial Mortgage	 	740,779	 	708,961	 	680,784	 	650,638	 	634,483	 	
Construction	 	153,952	 	153,364	 	168,678	 	190,521	 	208,670	 	
Lease Financing	 	468,140	 	467,279	 	471,443	 	465,945	 	481,882	 	
Total Commercial	 	2,416,652	 	2,406,918	 	2,373,224	 	2,386,876	 	2,379,390	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	2,461,824	 	2,478,925	 	2,485,558	 	2,506,594	 	2,486,284	 	
Home Equity	 	1,033,221	 	1,004,437	 	989,683	 	990,759	 	994,972	 	
Automobile	 	369,789	 	395,015	 	413,338	 	430,920	 	443,011	 	
Other2	 	248,747	 	254,163	 	256,325	 	264,188	 	277,204	 	
Total Consumer	 	4,113,581	 	4,132,540	 	4,144,904	 	4,192,461	 	4,201,471	 	
Total Loans and Leases	 	$	6,530,233	 	$	6,539,458	 	$	6,518,128	 	$	6,579,337	 	$	6,580,861	 	
 
Air Transportation Credit Exposure3 (Unaudited)	

 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands)	 	2008	 	2008	 	2008	 	2008	 	2007	 	
Passenger Carriers Based In the United States	 	$	60,189	 	$	60,260	 	$	60,603	 	$	61,190	 	$	64,947	 	
Passenger Carriers Based Outside the United States	 	5,672	 	5,809	 	7,161	 	7,258	 	19,078	 	
Cargo Carriers	 	13,831	 	13,689	 	13,568	 	13,472	 	13,390	 	
Total Air Transportation Credit Exposure	 	$	79,692	 	$	79,758	 	$	81,332	 	$	81,920	 	$	97,415	 	
 
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	
 
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands)	 	2008	 	2008	 	2008	 	2008	 	2007 1	 	
Non-Performing Assets	 	 	 	 	 	 	 	 	 	 	 	
Non-Accrual Loans and Leases	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	3,869	 	$	574	 	$	1,119	 	$	794	 	$	598	 	
Commercial Mortgage	 	-	 	-	 	-	 	-	 	112	 	
Construction	 	5,001	 	-	 	-	 	-	 	-	 	
Lease Financing	 	133	 	149	 	329	 	504	 	297	 	
Total Commercial	 	9,003	 	723	 	1,448	 	1,298	 	1,007	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	3,904	 	3,749	 	3,784	 	3,235	 	2,681	 	
Home Equity	 	1,614	 	1,162	 	1,189	 	1,187	 	1,414	 	
Other2	 	-	 	-	 	30	 	31	 	-	 	
Total Consumer	 	5,518	 	4,911	 	5,003	 	4,453	 	4,095	 	
Total Non-Accrual Loans and Leases	 	14,521	 	5,634	 	6,451	 	5,751	 	5,102	 	
Foreclosed Real Estate	 	428	 	293	 	229	 	294	 	184	 	
Total Non-Performing Assets	 	$	14,949	 	$	5,927	 	$	6,680	 	$	6,045	 	$	5,286	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Accruing Loans and Leases Past Due 90 Days or More	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	6,785	 	$	-	 	$	-	 	$	24	 	$	-	 	
Lease Financing	 	268	 	-	 	-	 	-	 	-	 	
Total Commercial	 	7,053	 	-	 	-	 	24	 	-	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	4,192	 	3,455	 	2,601	 	3,892	 	4,884	 	
Home Equity	 	1,077	 	296	 	201	 	328	 	413	 	
Automobile	 	743	 	758	 	625	 	865	 	1,174	 	
Other2	 	1,134	 	926	 	756	 	725	 	1,112	 	
Total Consumer	 	7,146	 	5,435	 	4,183	 	5,810	 	7,583	 	
Total Accruing Loans and Leases Past Due 90 Days or More	 	$	14,199	 	$	5,435	 	$	4,183	 	$	5,834	 	$	7,583	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Loans and Leases	 	$	6,530,233	 	$	6,539,458	 	$	6,518,128	 	$	6,579,337	 	$	6,580,861	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	 	0.22	%	0.09	%	0.10	%	0.09	%	0.08	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate	 	0.23	%	0.09	%	0.10	%	0.09	%	0.08	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases	 	0.37	%	0.03	%	0.06	%	0.05	%	0.04	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Foreclosed Real Estate	 	0.14	%	0.13	%	0.13	%	0.11	%	0.10	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases	 	0.45	%	0.17	%	0.17	%	0.18	%	0.20	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Quarter to Quarter Changes in Non-Performing Assets Balance at Beginning of Quarter	 	$	5,927	 	$	6,680	 	$	6,045	 	$	5,286	 	$	4,260	 	
Additions	 	15,464	 	1,355	 	2,900	 	2,614	 	1,866	 	
Reductions	 	 	 	 	 	 	 	 	 	 	 	
Payments	 	(2,440	)	(955	)	(630	)	(386	)	(256	)	
Return to Accrual Status	 	(1,468	)	(756	)	(943	)	(944	)	(214	)	
Sales of Foreclosed Real Estate	 	-	 	-	 	-	 	-	 	(161	)	
Charge-offs/Write-downs	 	(2,534	)	(397	)	(692	)	(525	)	(209	)	
Total Reductions	 	(6,442	)	(2,108	)	(2,265	)	(1,855	)	(840	)	
Balance at End of Quarter	 	$	14,949	 	$	5,927	 	$	6,680	 	$	6,045	 	$	5,286	 	
 
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	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands)	 	2008	 	2008	 	20071	 	2008	 	20071	 	
Balance at Beginning of Period	 	$	120,667	 	$	107,667	 	$	96,167	 	$	96,167	 	$	96,167	 	
Loans and Leases Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(3,490	)	(1,783	)	(1,008	)	(8,059	)	(3,266	)	
Construction	 	(1,932	)	-	 	-	 	(1,932	)	-	 	
Lease Financing	 	-	 	(27	)	-	 	(304	)	(145	)	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	(192	)	(398	)	(122	)	(723	)	(169	)	
Home Equity	 	(732	)	(519	)	(333	)	(2,530	)	(1,097	)	
Automobile	 	(3,277	)	(2,858	)	(2,697	)	(11,236	)	(10,340	)	
Other2	 	(2,363	)	(3,444	)	(3,023	)	(10,564	)	(9,893	)	
Total Loans and Leases Charged-Off	 	(11,986	)	(9,029	)	(7,183	)	(35,348	)	(24,910	)	
Recoveries on Loans and Leases Previously Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	227	 	220	 	285	 	1,634	 	1,203	 	
Commercial Mortgage	 	-	 	-	 	-	 	-	 	156	 	
Lease Financing	 	3	 	2	 	3	 	10	 	2,092	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	13	 	67	 	18	 	175	 	221	 	
Home Equity	 	25	 	36	 	170	 	108	 	359	 	
Automobile	 	622	 	699	 	602	 	2,817	 	2,582	 	
Other2	 	538	 	647	 	662	 	2,589	 	2,790	 	
Total Recoveries on Loans and Leases Previously Charged-Off	 	1,428	 	1,671	 	1,740	 	7,333	 	9,403	 	
Net Loans and Leases Charged-Off	 	(10,558	)	(7,358	)	(5,443	)	(28,015	)	(15,507	)	
Provision for Credit Losses	 	18,558	 	20,358	 	5,443	 	60,515	 	15,507	 	
Balance at End of Period3	 	$	128,667	 	$	120,667	 	$	96,167	 	$	128,667	 	$	96,167	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Components	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	123,498	 	$	115,498	 	$	90,998	 	$	123,498	 	$	90,998	 	
Reserve for Unfunded Commitments	 	5,169	 	5,169	 	5,169	 	5,169	 	5,169	 	
Total Reserve for Credit Losses	 	$	128,667	 	$	120,667	 	$	96,167	 	$	128,667	 	$	96,167	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases Outstanding	 	$	6,537,134	 	$	6,512,453	 	$	6,581,183	 	$	6,542,178	 	$	6,561,584	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)	 	0.64	%	0.45	%	0.33	%	0.43	%	0.24	%	
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding	 	1.89	%	1.77	%	1.38	%	1.89	%	1.38	%	

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 Segment Selected Financial Information (Unaudited)	 	Table 12a	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	Commercial	 	Investment	 	 	 	Treasury &	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	Total	 	Other	 	Total	 	
Three Months Ended December 31, 2008	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	56,247	 	$	40,048	 	$	3,912	 	$	100,207	 	$	5,647	 	$	105,854	 	
Provision for Credit Losses	 	3,609	 	14,949	 	-	 	18,558	 	-	 	18,558	 	
Net Interest Income After Provision for Credit Losses	 	52,638	 	25,099	 	3,912	 	81,649	 	5,647	 	87,296	 	
Noninterest Income	 	28,895	 	11,072	 	14,713	 	54,680	 	(217	)	54,463	 	
Noninterest Expense	 	(43,237	)	(23,372	)	(14,891	)	(81,500	)	(1,190	)	(82,690	)	
Income Before Income Taxes	 	38,296	 	12,799	 	3,734	 	54,829	 	4,240	 	59,069	 	
Provision for Income Taxes	 	(14,175	)	(4,450	)	(1,382	)	(20,007	)	245	 	(19,762	)	
Allocated Net Income	 	24,121	 	8,349	 	2,352	 	34,822	 	4,485	 	39,307	 	
Adjustments to Allocated Net Income 1	 	(1,045	)	(1,555	)	(61	)	(2,661	)	3,677	 	1,016	 	
Income Before Capital Charge	 	23,076	 	6,794	 	2,291	 	32,161	 	8,162	 	40,323	 	
Capital Charge	 	(4,732	)	(4,157	)	(1,365	)	(10,254	)	(9,728	)	(19,982	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	18,344	 	$	2,637	 	$	926	 	$	21,907	 	$	(1,566	)	$	20,341	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	48	%	16	%	17	%	31	%	45	%	20	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets as of December 31, 2008	 	$	3,696,518	 	$	3,029,799	 	$	278,748	 	$	7,005,065	 	$	3,758,410	 	$	10,763,475	 	

 	 	Retail	 	Commercial	 	Investment	 	 	 	Treasury &	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	Total	 	Other	 	Total	 	
Three Months Ended December 31, 2007 2	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	57,381	 	$	41,912	 	$	3,651	 	$	102,944	 	$	(3,497	)	$	99,447	 	
Provision for Credit Losses	 	2,480	 	2,769	 	259	 	5,508	 	(65	)	5,443	 	
Net Interest Income After Provision for Credit Losses	 	54,901	 	39,143	 	3,392	 	97,436	 	(3,432	)	94,004	 	
Noninterest Income	 	26,774	 	8,643	 	18,902	 	54,319	 	5,938	 	60,257	 	
Noninterest Expense	 	(42,149	)	(26,419	)	(16,396	)	(84,964	)	(7,038	)	(92,002	)	
Income Before Income Taxes	 	39,526	 	21,367	 	5,898	 	66,791	 	(4,532	)	62,259	 	
Provision for Income Taxes	 	(14,624	)	(7,902	)	(2,183	)	(24,709	)	3,310	 	(21,399	)	
Allocated Net Income	 	24,902	 	13,465	 	3,715	 	42,082	 	(1,222	)	40,860	 	
Adjustments to Allocated Net Income 1	 	(1,169	)	(1,477	)	(25	)	(2,671	)	746	 	(1,925	)	
Income Before Capital Charge	 	23,733	 	11,988	 	3,690	 	39,411	 	(476	)	38,935	 	
Capital Charge	 	(5,162	)	(4,655	)	(1,595	)	(11,412	)	(9,311	)	(20,723	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	18,571	 	$	7,333	 	$	2,095	 	$	27,999	 	$	(9,787	)	$	18,212	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	50	%	28	%	25	%	38	%	-2	%	22	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets as of December 31, 2007 2	 	$	3,690,551	 	$	3,095,861	 	$	254,756	 	$	7,041,168	 	$	3,431,774	 	$	10,472,942	 	
 
1       Adjustments to Allocated Net Income include the replacement of the provision for credit losses (the “GAAP provision”) with the higher of an economic provision or the GAAP provision, the replacement of the hedge effectiveness of the Company’s mortgage servicing rights with an amortization approach, the reversal of an earnings credit related to the allowance for loan and lease losses, as well as the tax effect of these adjustments.
2       Certain prior period information has been reclassified to conform to the current presentation.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	 	
Business Segment Selected Financial Information (Unaudited)	 	Table 12b	

 	 	Retail	 	Commercial	 	Investment	 	 	 	Treasury &	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	Total	 	Other	 	Total	 	
Year Ended December 31, 2008	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	232,454	 	$	162,711	 	$	15,643	 	$	410,808	 	$	7,969	 	$	418,777	 	
Provision for Credit Losses	 	19,607	 	40,655	 	1,088	 	61,350	 	(835	)	60,515	 	
Net Interest Income After Provision for Credit Losses	 	212,847	 	122,056	 	14,555	 	349,458	 	8,804	 	358,262	 	
Noninterest Income	 	112,091	 	53,826	 	69,452	 	235,369	 	22,744	 	258,113	 	
Noninterest Expense	 	(174,050	)	(96,125	)	(64,917	)	(335,092	)	(11,682	)	(346,774	)	
Income Before Income Taxes	 	150,888	 	79,757	 	19,090	 	249,735	 	19,866	 	269,601	 	
Provision for Income Taxes	 	(55,836	)	(30,723	)	(7,063	)	(93,622	)	16,234	 	(77,388	)	
Allocated Net Income	 	95,052	 	49,034	 	12,027	 	156,113	 	36,100	 	192,213	 	
Adjustments to Allocated Net Income 1	 	(4,707	)	(6,272	)	(208	)	(11,187	)	7,150	 	(4,037	)	
Income Before Capital Charge	 	90,345	 	42,762	 	11,819	 	144,926	 	43,250	 	188,176	 	
Capital Charge	 	(19,040	)	(16,417	)	(5,750	)	(41,207	)	(37,149	)	(78,356	)	
Net Income After Capital Charge (NIACC)	 	$	71,305	 	$	26,345	 	$	6,069	 	$	103,719	 	$	6,101	 	$	109,820	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	47	%	26	%	21	%	35	%	58	%	25	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets as of December 31, 2008	 	$	3,696,518	 	$	3,029,799	 	$	278,748	 	$	7,005,065	 	$	3,758,410	 	$	10,763,475	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	Commercial	 	Investment	 	 	 	Treasury &	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	Total	 	Other	 	Total	 	
Year Ended December 31, 2007 2	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	224,236	 	$	161,962	 	$	14,215	 	$	400,413	 	$	(5,395	)	$	395,018	 	
Provision for Credit Losses	 	7,056	 	8,469	 	258	 	15,783	 	(276	)	15,507	 	
Net Interest Income After Provision for Credit Losses	 	217,180	 	153,493	 	13,957	 	384,630	 	(5,119	)	379,511	 	
Noninterest Income	 	105,490	 	40,332	 	75,571	 	221,393	 	19,094	 	240,487	 	
Noninterest Expense	 	(166,245	)	(94,087	)	(63,672	)	(324,004	)	(11,403	)	(335,407	)	
Income Before Income Taxes	 	156,425	 	99,738	 	25,856	 	282,019	 	2,572	 	284,591	 	
Provision for Income Taxes	 	(57,871	)	(36,784	)	(9,567	)	(104,222	)	3,334	 	(100,888	)	
Allocated Net Income	 	98,554	 	62,954	 	16,289	 	177,797	 	5,906	 	183,703	 	
Adjustments to Allocated Net Income 1	 	(4,902	)	(7,363	)	(203	)	(12,468	)	772	 	(11,696	)	
Income Before Capital Charge	 	93,652	 	55,591	 	16,086	 	165,329	 	6,678	 	172,007	 	
Capital Charge	 	(20,461	)	(17,870	)	(6,229	)	(44,560	)	(35,765	)	(80,325	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	73,191	 	$	37,721	 	$	9,857	 	$	120,769	 	$	(29,087	)	$	91,682	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	50	%	34	%	28	%	41	%	5	%	25	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets as of December 31, 2007 2	 	$	3,690,551	 	$	3,095,861	 	$	254,756	 	$	7,041,168	 	$	3,431,774	 	$	10,472,942	 	

1       Adjustments to Allocated Net Income include the replacement of the provision for credit losses (the “GAAP provision”) with the higher of an economic provision or the GAAP provision, the replacement of the hedge effectiveness of the Company’s mortgage servicing rights with an amortization approach, the reversal of an earnings credit related to the allowance for loan and lease losses, as well as the tax effect of these adjustments.
2       Certain prior period information has been reclassified to conform to the current presentation.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	 	
Selected Quarterly Financial Data (Unaudited)	 	Table 13	
 	 	Three Months Ended	 	
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands, except per share amounts)	 	2008	 	2008	 	2008	 	2008	 	2007	 	
Quarterly Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	95,598	 	$	92,744	 	$	97,959	 	$	104,413	 	$	111,270	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	1,152	 	1,174	 	1,209	 	1,160	 	814	 	
Available-for-Sale	 	34,352	 	35,152	 	35,321	 	34,251	 	33,591	 	
Held-to-Maturity	 	2,735	 	2,870	 	3,033	 	3,239	 	3,440	 	
Deposits	 	25	 	33	 	204	 	195	 	309	 	
Funds Sold	 	48	 	141	 	420	 	992	 	356	 	
Other	 	276	 	490	 	489	 	426	 	395	 	
Total Interest Income	 	134,186	 	132,604	 	138,635	 	144,676	 	150,175	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	16,960	 	17,736	 	20,238	 	27,465	 	33,158	 	
Securities Sold Under Agreements to Repurchase	 	7,984	 	7,675	 	7,488	 	10,617	 	11,754	 	
Funds Purchased	 	175	 	507	 	270	 	633	 	1,936	 	
Short-Term Borrowings	 	103	 	13	 	12	 	34	 	91	 	
Long-Term Debt	 	3,110	 	3,098	 	3,459	 	3,747	 	3,789	 	
Total Interest Expense	 	28,332	 	29,029	 	31,467	 	42,496	 	50,728	 	
Net Interest Income	 	105,854	 	103,575	 	107,168	 	102,180	 	99,447	 	
Provision for Credit Losses	 	18,558	 	20,358	 	7,172	 	14,427	 	5,443	 	
Net Interest Income After Provision for Credit Losses	 	87,296	 	83,217	 	99,996	 	87,753	 	94,004	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	12,275	 	14,193	 	15,460	 	15,086	 	15,812	 	
Mortgage Banking	 	508	 	621	 	2,738	 	4,297	 	2,027	 	
Service Charges on Deposit Accounts	 	13,306	 	13,045	 	12,411	 	12,083	 	12,302	 	
Fees, Exchange, and Other Service Charges	 	16,256	 	16,991	 	17,176	 	16,101	 	16,743	 	
Unrealized Trading Gains, Net	 	-	 	-	 	-	 	-	 	-	 	
Investment Securities Gains, Net	 	86	 	159	 	157	 	130	 	105	 	
Insurance	 	5,953	 	5,902	 	5,590	 	7,130	 	4,629	 	
Other	 	6,079	 	6,075	 	7,007	 	31,298	 	8,639	 	
Total Noninterest Income	 	54,463	 	56,986	 	60,539	 	86,125	 	60,257	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	43,737	 	46,764	 	45,984	 	55,473	 	45,928	 	
Net Occupancy	 	11,548	 	11,795	 	11,343	 	10,443	 	10,300	 	
Net Equipment	 	4,573	 	4,775	 	4,474	 	4,321	 	4,745	 	
Professional Fees	 	3,040	 	3,270	 	2,588	 	2,613	 	3,695	 	
Other	 	19,792	 	20,186	 	19,473	 	20,582	 	27,334	 	
Total Noninterest Expense	 	82,690	 	86,790	 	83,862	 	93,432	 	92,002	 	
Income Before Provision for Income Taxes	 	59,069	 	53,413	 	76,673	 	80,446	 	62,259	 	
Provision for Income Taxes	 	19,762	 	6,004	 	28,391	 	23,231	 	21,399	 	
Net Income	 	$	39,307	 	$	47,409	 	$	48,282	 	$	57,215	 	$	40,860	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Basic Earnings Per Share	 	$	0.83	 	$	1.00	 	$	1.01	 	$	1.19	 	$	0.84	 	
Diluted Earnings Per Share	 	$	0.82	 	$	0.99	 	$	1.00	 	$	1.18	 	$	0.83	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	$	6,530,233	 	$	6,539,458	 	$	6,518,128	 	$	6,579,337	 	$	6,580,861	 	
Total Assets	 	10,763,475	 	10,335,047	 	10,371,149	 	10,822,801	 	10,472,942	 	
Total Deposits	 	8,292,098	 	7,658,484	 	7,903,990	 	8,102,855	 	7,942,372	 	
Total Shareholders’ Equity	 	790,704	 	780,020	 	767,558	 	766,747	 	750,255	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Net Income to Average Total Assets	 	1.52	%	1.82	%	1.85	%	2.16	%	1.55	%	
Net Income to Average Shareholders’ Equity	 	19.56	 	24.17	 	24.82	 	29.88	 	21.51	 	
Efficiency Ratio1	 	51.58	 	54.05	 	50.01	 	49.62	 	57.61	 	
Net Interest Margin2	 	4.43	 	4.33	 	4.41	 	4.17	 	4.12	 	

1       The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
2       The net interest margin is defined as net interest income, on a fully-taxable equivalent basis, as a percentage of average earning assets.