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)	 October 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) (888) 643-3888
 
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 Condition.
 
On October 25, 2010, Bank of Hawaii Corporation (the “Company”) announced its results of operations for the quarter ended September 30, 2010.  The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and incorporated herein by reference.
 
Item 9.01.      Financial Statements and Exhibits.
 
(d)                                Exhibits
 
Exhibit No.	 	 	
 	 	 	
99.1	 	October 25, 2010 Press Release: Bank of Hawaii Corporation Third Quarter 2010 Financial Results. Any internet addresses provided in this release are for informational purposes only and are not intended to be hyperlinks. Furnished herewith.	
 
SIGNATURES
 
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: October 25, 2010	 	BANK OF HAWAII CORPORATION	

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

Exhibit 99.1

 
Bank of Hawaii Corporation Third Quarter 2010 Financial Results
 
·           Diluted Earnings Per Share $0.91
·           Net Income for the Quarter $44.1 Million
·           Board of Directors Declares Dividend of $0.45 Per Share
 
FOR IMMEDIATE RELEASE
 
HONOLULU, HI (October 25, 2010) — Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.91 for the third quarter of 2010, up $0.15 or 20 percent from diluted earnings per share of $0.76 in the same quarter last year.  Net income for the third quarter of 2010 was $44.1 million compared to net income of $36.5 million in the third quarter of 2009.  The return on average assets for the third quarter of 2010 was 1.37 percent compared to 1.21 percent during the same quarter last year.  The return on average equity for the third quarter of 2010 was 16.64 percent compared to 16.44 percent for the third quarter of 2009.
 
Average total deposits increased to $9.6 billion during the third quarter of 2010 compared to average deposits of $9.4 billion in the second quarter of 2010.  Shareholders’ equity increased to $1.04 billion at the end of the quarter.  The allowance for loan and lease losses was unchanged at $147.4 million, representing 2.77 percent of outstanding loans and leases.
 
“Bank of Hawaii Corporation had good results for the third quarter of 2010,” said Peter S. Ho, Chairman, CEO, and President.  “We were able to increase our capital, maintain our profitability, and our Board affirmed our dividend.  During the quarter, we repurchased 208.5 thousand shares of common stock at a total cost of $9.8 million.    The Hawaii economy remains stable and we are pleased with our year-to-date financial results, including our improved credit quality.  We are hopeful that our loan balances will begin to stabilize in the near future although we remain cautious about revenue headwinds resulting from financial reform legislation, the possibility of lower interest rates, and the ability to generate sustained future loan growth.”
 
For the nine months ended September 30, 2010, net income was $143.4 million compared to net income of $103.5 million for the same period last year.  Diluted earnings per share were $2.96 for the nine-month period in 2010, up from $2.16 for the same period in 2009.  The year-to-date return on average assets was 1.52 percent compared to 1.19 percent for the same period in 2009.  The year-to-date return on average equity was 19.28 percent, up from 16.24 percent for the nine months ended September 30, 2009.
 
- more -

 

 
Results for the nine months ended September 30, 2010 included $42.8 million in net gains on investment securities, interest recoveries of $2.8 million, a net gain of $2.9 million on the sale of the Company’s Pacific Capital Funds, and a gain of $0.9 million from a contingent payment received in the third quarter of 2010 related to the sale of the Company’s retail insurance brokerage business in 2009.  These gains were partially offset by $5.2 million in early termination costs related to prepayment of $75.0 million in debt (securities sold under agreements to repurchase), a $3.7 million increase in the allowance for loan and lease losses, and $3.3 million for employee cash grants for the purchase of Company stock.  Results for the same period in 2009 included gains of $13.7 million from the disposition of leased equipment and the sale of the Company’s retail insurance brokerage business.  These gains were offset by increases in the allowance for loan and lease losses, an industry-wide FDIC special assessment, expenses for legal contingencies, an impairment of a leveraged lease residual value, and early debt retirement.  Details of these items are included in Table 2.
 
Financial Highlights
 
Net interest income, on a taxable equivalent basis, for the third quarter of 2010 was $98.8 million, down $5.3 million from net interest income of $104.2 million in the second quarter of 2010, and down $10.4 million from net interest income of $109.2 million in the third quarter of 2009.  The decrease compared to the previous quarter was largely due to lower interest rates and lower loan balances.  For the nine months ended September 30, 2010, net interest income, on a taxable-equivalent basis, was $310.9 million compared to $309.7 million for the same period in 2009.  Analyses of the changes in net interest income are included in Tables 7a, 7b and 7c.
 
The net interest margin was 3.27 percent for the third quarter of 2010, a decrease of 24 basis points from 3.51 percent in the second quarter of 2010, and a 58 basis point decrease from 3.85 percent in the third quarter of 2009.   For the nine months ended September 30, 2010, the net interest margin was 3.50 percent compared to 3.78 percent for the same nine months in 2009.  The decrease in the net interest margin was largely the result of lower interest rates, a change in the balance sheet mix due to the higher percentage of investment securities compared with loans, and the Company’s strategy to maintain a lower risk investment portfolio.
 
Results for the third quarter of 2010 included a provision for credit losses of $13.4 million compared with $15.9 million in the second quarter of 2010 and $27.5 million in the third quarter of 2009.  The provision for credit losses equaled net charge-offs in the third quarter of 2010.  The provision for credit losses exceeded net charge-offs by $1.0 million in the second quarter of 2010 and $5.2 million in the third quarter of 2009.
 
Noninterest income was $63.1 million for the third quarter of 2010, a decrease of $5.7 million compared to $68.9 million in the second quarter of 2010, and up $6.3 million from $56.8 million in the third quarter of 2009.  Noninterest income in the third quarter of 2010 included net securities gains of $7.9 million, $3.8 million related to the previously mentioned Pacific Capital Funds and insurance business sales, and a loss of $1.4 million related to the disposition of a leveraged lease.  Noninterest income in the second quarter of 2010 included net securities gains of $15.0 million and a gain of $1.2 million related to the disposition of leased equipment.
 
Noninterest expense was $89.9 million in the third quarter of 2010, up $4.0 million from $85.9 million in the previous quarter, and up $5.9 million from $84.0 million in the same quarter last year.  Noninterest expense in the third quarter of 2010 included $5.2 million for the early termination of debt (securities sold under agreements to repurchase).  Noninterest expense in the second quarter of 2010 included $3.3 million for the previously mentioned employee cash grants.  An analysis of salary and benefit expenses is included in Table 8.
 
2

 
The efficiency ratio for the third quarter of 2010 was 55.57 percent, compared with an efficiency ratio of 49.72 percent in the previous quarter and 50.69 percent in the same quarter last year.  The efficiency ratio for the nine-month period ended September 30, 2010 was 50.10 percent compared with 52.74 percent for the same period last year.
 
The effective tax rate for the third quarter of 2010 was 24.68 percent, compared to 34.37 percent in the previous quarter, and 32.71 percent during the third quarter last year.  Taxes in the third quarter of 2010 included a $4.4 million net credit related to the disposition of two leveraged leases.
 
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
 
Overall credit quality reflected the slowly improving Hawaii economy during the third quarter of 2010.  Non-performing assets were $45.2 million at September 30, 2010, up from $43.2 million at June 30, 2010, and down from $48.5 million at September 30, 2009.  As a percentage of total loans and leases, including loans held for sale and foreclosed real estate, non-performing assets were 0.85 percent at September 30, 2010.  Non-performing assets remain at elevated levels primarily due to the lengthy resolution process on residential mortgages.  Non-accrual loans and leases declined to $39.3 million at September 30, 2010, representing 0.74 percent of total loans and leases.  Accruing loans and leases past due 90 days or more decreased to $10.5 million during the third quarter.  More information on non-performing assets and accruing loans and leases past due 90 days is presented in Table 10.
 
Net charge-offs during the third quarter of 2010 were $13.4 million or 0.99 percent annualized of total average loans and leases, down from $14.9 million in the second quarter of 2010, and down from $22.3 million in the third quarter last year.  Net charge-offs for the nine months ended September 30, 2010 were $46.3 million, or 1.12 percent annualized of total average loans and leases, down from $61.9 million, or 1.33 percent annualized of total average loans and leases for the same period last year.
 
The allowance for loan and lease losses was $147.4 million at September 30, 2010, unchanged from June 30, 2010, and up from $142.7 million at September 30, 2009.  The ratio of the allowance for loan and lease losses to total loans and leases increased to 2.77 percent at September 30, 2010.  The reserve for unfunded commitments at September 30, 2010 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 $12.72 billion at September 30, 2010, down slightly from total assets of $12.86 billion at June 30, 2010, and up from $12.21 billion at September 30, 2009.  Average total assets were $12.80 billion during the third quarter of 2010, up from average assets of $12.60 billion during the previous quarter, and up from $11.99 billion during the third quarter last year.
 
3

 
Total loans and leases were $5.31 billion at September 30, 2010, down from $5.44 billion at June 30, 2010, and down from $5.93 billion at September 30, 2009 primarily due to lower demand.  Loan and lease portfolio balances, including the higher risk loans outstanding, are summarized in Table 9.
 
Deposit generation remained strong during the third quarter of 2010.  Total deposits were $9.60 billion at September 30, 2010, up from $9.32 billion at June 30, 2010, and up from $9.25 billion at September 30, 2009.  The increase in deposits was widespread among deposit categories.  Average total deposits were $9.58 billion in the third quarter of 2010, up from average deposits of $9.39 billion during the previous quarter, and up from $9.13 billion during the third quarter last year.  Deposit balances are summarized in Tables 6a, 6b, and 9.
 
As a result of strong deposits and weak loan demand, the investment securities portfolio increased to $6.36 billion at September 30, 2010, up from $6.13 billion at June 30, 2010, and up from $5.02 billion at September 30, 2009.
 
During the third quarter of 2010, the Company repurchased 208.5 thousand shares of common stock at a total cost of $9.8 million under its share repurchase program.  The average cost was $46.93 per share repurchased.  From October 1, 2010 through October 22, 2010, the Company repurchased an additional 65.5 thousand shares of common stock at an average cost of $45.68 per share.  From the beginning of the share repurchase program initiated during July 2001 through September 30, 2010, the Company has repurchased 45.8 million shares and returned over $1.6 billion to shareholders at an average cost of $35.47 per share.  Remaining buyback authority under the share repurchase program was $75.6 million at September 30, 2010.
 
Total shareholders’ equity increased to $1.04 billion at September 30, 2010, compared to $1.01 billion at June 30, 2010, and $902.8 million at September 30, 2009.  The ratio of tangible common equity to risk-weighted assets was 19.50 percent at September 30, 2010, up from 18.57 percent at June 30, 2010, and up from 14.56 percent at September 30, 2009.  At September 30, 2010, the Tier 1 leverage ratio increased to 7.15 percent, up from to 7.09 percent at June 30, 2010, and 6.65 percent at September 30, 2009.
 
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 December 14, 2010 to shareholders of record at the close of business on November 30, 2010.
 
Hawaii Economy
 
Hawaii’s economy continued to recover during the third quarter of 2010 due to a stronger visitor industry.  During April through July, total visitor arrivals increased 8.4 percent compared with the same period last year and were widespread among counties.  Hotel occupancy improved to 74 percent and visitor spending is trending upward.  Overall, state job growth in July 2010 was 1.0 percent as visitor industry gains offset declines in other sectors.  Construction continues to be the industry most impacted with 9.3 percent fewer jobs in July compared with the previous year.  The September statewide unemployment rate declined slightly to 6.3 percent on a seasonally adjusted basis.  Home prices and sales remained fairly strong during the quarter.  More information on Hawaii economic trends is presented in Table 14.
 
4

 
Conference Call Information
 
The Company will review its third quarter 2010 financial results today at 8:00 a.m. Hawaii Time.  The conference call will be accessible via teleconference and the Investor Relations link of Bank of Hawaii Corporation’s web site, www.boh.com.  Conference call participants in the United States should dial 866-543-6405.  International participants should dial 617-213-8897.  Use the pass code “Bank of Hawaii” to access the call.  A replay will be available for one week beginning Monday, October 25, 2010 by dialing 888-286-8010 in the United States or 617-801-6888 internationally and entering the pass code number 44496791 when prompted.  A replay will also be available via the Investor Relations link of the Company’s web site, www.boh.com.
 
Forward-Looking Statements
 
This news release, and other statements made by the Company in connection with it may contain “forward-looking statements”, such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations.  Do not unduly rely on forward-looking statements.  Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation’s Annual Report on Form 10-K for the year ended December 31, 2009, which was filed with the U.S. Securities and Exchange Commission.  We have not committed to update forward-looking statements to reflect later events or circumstances.
 
Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers, and governments in Hawaii, American Samoa, and the West Pacific.  The Company’s principal subsidiary, Bank of Hawaii, was founded in 1897 and is the largest independent financial institution in Hawaii.  For more information about Bank of Hawaii Corporation, see the Company’s web site, www.boh.com.
 
# # # #
 
5

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Financial Highlights	 	Table 1	
 
 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands, except per share amounts)	 	2010	 	2010	 	2009	 	2010	 	2009	 	
For the Period:	 	 	 	 	 	 	 	 	 	 	 	
Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	98,626	 	$	103,928	 	$	108,887	 	$	310,207	 	$	308,800	 	
Provision for Credit Losses	 	13,359	 	15,939	 	27,500	 	50,009	 	81,077	 	
Total Noninterest Income	 	63,125	 	68,874	 	56,800	 	203,781	 	186,997	 	
Total Noninterest Expense	 	89,890	 	85,918	 	83,987	 	257,514	 	261,504	 	
Net Income	 	44,064	 	46,564	 	36,471	 	143,364	 	103,517	 	
Basic Earnings Per Share	 	0.91	 	0.97	 	0.76	 	2.98	 	2.17	 	
Diluted Earnings Per Share	 	0.91	 	0.96	 	0.76	 	2.96	 	2.16	 	
Dividends Declared Per Share	 	0.45	 	0.45	 	0.45	 	1.35	 	1.35	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.37	%	1.48	%	1.21	%	1.52	%	1.19	%	
Return on Average Shareholders’ Equity	 	16.64	 	19.01	 	16.44	 	19.28	 	16.24	 	
Efficiency Ratio1	 	55.57	 	49.72	 	50.69	 	50.10	 	52.74	 	
Operating Leverage2	 	(17.29	)	(11.10	)	11.77	 	9.47	 	(7.21	)	
Net Interest Margin3	 	3.27	 	3.51	 	3.85	 	3.50	 	3.78	 	
Dividend Payout Ratio4	 	49.45	 	46.39	 	59.21	 	45.30	 	62.21	 	
Average Shareholders’ Equity to Average Assets	 	8.21	 	7.79	 	7.34	 	7.90	 	7.34	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Balances	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases	 	$	5,368,177	 	$	5,522,423	 	$	6,034,956	 	$	5,524,672	 	$	6,245,117	 	
Average Assets	 	12,797,219	 	12,603,233	 	11,988,995	 	12,594,282	 	11,616,237	 	
Average Deposits	 	9,576,936	 	9,387,621	 	9,131,064	 	9,452,406	 	9,036,247	 	
Average Shareholders’ Equity	 	1,050,535	 	982,233	 	880,003	 	994,319	 	852,347	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Market Price Per Share of Common Stock	 	 	 	 	 	 	 	 	 	 	 	
Closing	 	$	44.92	 	$	48.35	 	$	41.54	 	$	44.92	 	$	41.54	 	
High	 	51.60	 	54.10	 	42.92	 	54.10	 	45.24	 	
Low	 	43.77	 	45.00	 	33.65	 	41.60	 	25.33	 	
 
 	 	September 30,	 	June 30,	 	December 31,	 	September 30,	 	
 	 	2010	 	2010	 	2009	 	2009	 	
As of Period End:	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	$	5,312,054	 	$	5,440,911	 	$	5,759,785	 	$	5,931,358	 	
Total Assets	 	12,716,603	 	12,855,845	 	12,414,827	 	12,208,025	 	
Total Deposits	 	9,602,462	 	9,324,659	 	9,409,676	 	9,250,100	 	
Long-Term Debt	 	40,292	 	40,300	 	90,317	 	91,424	 	
Total Shareholders’ Equity	 	1,039,561	 	1,013,011	 	895,973	 	902,799	 	
 	 	 	 	 	 	 	 	 	 	
Asset Quality	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	147,358	 	$	147,358	 	$	143,658	 	$	142,658	 	
Non-Performing Assets5	 	45,174	 	43,241	 	48,331	 	48,536	 	
 	 	 	 	 	 	 	 	 	 	
Financial Ratios	 	 	 	 	 	 	 	 	 	
Allowance to Loans and Leases Outstanding	 	2.77	%	2.71	%	2.49	%	2.41	%	
Tier 1 Capital Ratio6	 	17.71	 	16.92	 	14.84	 	13.39	 	
Total Capital Ratio7	 	18.98	 	18.19	 	16.11	 	14.66	 	
Leverage Ratio8	 	7.15	 	7.09	 	6.76	 	6.65	 	
Tangible Common Equity to Total Assets9	 	7.93	 	7.63	 	6.96	 	7.11	 	
Tangible Common Equity to Risk-Weighted Assets 9	 	19.50	 	18.57	 	15.45	 	14.56	 	
 	 	 	 	 	 	 	 	 	 	
Non-Financial Data	 	 	 	 	 	 	 	 	 	
Full-Time Equivalent Employees	 	2,428	 	2,427	 	2,418	 	2,474	 	
Branches and Offices	 	83	 	83	 	83	 	85	 	
ATMs	 	492	 	487	 	485	 	485	 	

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  Tier 1 Capital Ratio as of December 31, 2009 and September 30, 2009 was revised from 14.88% and 13.43%, respectively.
7  Total Capital Ratio as of December 31, 2009 and September 30, 2009 was revised from 16.15% and 14.70%, respectively.
8  Leverage Ratio as of December 31, 2009 and September 30, 2009 was revised from 6.78% and 6.67%, respectively.
9  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	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands)	 	2010	 	2010	 	2009	 	2010	 	2009	 	
Cash Basis Interest Recoveries	 	$	—	 	$	—	 	$	—	 	$	2,832	 	$	—	 	
Leveraged Lease Residual Value Impairment	 	—	 	—	 	(968	)	—	 	(968	)	
Investment Securities Gains, Net	 	7,877	 	14,951	 	—	 	42,849	 	—	 	
Gain on Mutual Fund Sale	 	2,852	 	—	 	—	 	2,852	 	—	 	
Gains (Losses) on Disposal of Leased Equipment	 	(1,449	)	1,189	 	—	 	(260	)	12,818	 	
Gain on Sale of Insurance Subsidiary	 	904	 	—	 	—	 	904	 	852	 	
Increase in Allowance for Loan and Lease Losses	 	—	 	(1,000	)	(5,242	)	(3,700	)	(19,160	)	
Cash Grants for the Purchase of Company Stock	 	—	 	(3,250	)	—	 	(3,250	)	—	 	
FDIC Special Assessment	 	—	 	—	 	—	 	—	 	(5,744	)	
REPO Early Termination Expense	 	(5,189	)	—	 	—	 	(5,189	)	—	 	
Legal Contingencies	 	—	 	—	 	(800	)	—	 	(2,300	)	
Market Premium on Repurchased Long-Term Privately Placed Debt	 	—	 	—	 	—	 	—	 	(875	)	
Significant Income (Expense) Items Before the Provision (Benefit) for Income Taxes	 	4,995	 	11,890	 	(7,010	)	37,038	 	(15,377	)	
Income Tax Impact Related to Lease Transactions	 	(4,003	)	462	 	(373	)	(3,541	)	3,213	 	
Income Tax Impact	 	2,256	 	3,745	 	(2,115	)	13,055	 	(9,529	)	
Net Significant Income (Expense) Items	 	$	6,742	 	$	7,683	 	$	(4,522	)	$	27,524	 	$	(9,061	)	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Income	 	Table 3	
 
 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands, except per share amounts)	 	2010	 	2010	 	2009	 	2010	 	2009	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	70,198	 	$	71,997	 	$	79,530	 	$	219,466	 	$	249,464	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	—	 	—	 	—	 	—	 	594	 	
Available-for-Sale	 	40,775	 	44,989	 	46,419	 	129,605	 	116,875	 	
Held-to-Maturity	 	1,553	 	1,700	 	2,179	 	5,116	 	7,115	 	
Deposits	 	5	 	3	 	3	 	21	 	18	 	
Funds Sold	 	211	 	396	 	320	 	916	 	1,423	 	
Other	 	278	 	277	 	277	 	832	 	829	 	
Total Interest Income	 	113,020	 	119,362	 	128,728	 	355,956	 	376,318	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	7,041	 	7,930	 	12,235	 	23,278	 	43,741	 	
Securities Sold Under Agreements to Repurchase	 	6,670	 	6,472	 	6,394	 	19,571	 	19,523	 	
Funds Purchased	 	10	 	6	 	5	 	23	 	15	 	
Long-Term Debt	 	673	 	1,026	 	1,207	 	2,877	 	4,239	 	
Total Interest Expense	 	14,394	 	15,434	 	19,841	 	45,749	 	67,518	 	
Net Interest Income	 	98,626	 	103,928	 	108,887	 	310,207	 	308,800	 	
Provision for Credit Losses	 	13,359	 	15,939	 	27,500	 	50,009	 	81,077	 	
Net Interest Income After Provision for Credit Losses	 	85,267	 	87,989	 	81,387	 	260,198	 	227,723	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	10,534	 	11,457	 	10,915	 	33,699	 	34,428	 	
Mortgage Banking	 	6,811	 	3,752	 	4,656	 	14,027	 	18,777	 	
Service Charges on Deposit Accounts	 	12,737	 	14,856	 	14,014	 	41,407	 	40,310	 	
Fees, Exchange, and Other Service Charges	 	15,500	 	15,806	 	14,801	 	45,810	 	45,187	 	
Investment Securities Gains (Losses), Net	 	7,877	 	14,951	 	(5	)	42,849	 	63	 	
Insurance	 	2,646	 	2,291	 	7,304	 	7,652	 	17,689	 	
Other	 	7,020	 	5,761	 	5,115	 	18,337	 	30,543	 	
Total Noninterest Income	 	63,125	 	68,874	 	56,800	 	203,781	 	186,997	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	46,840	 	47,500	 	46,387	 	138,904	 	137,595	 	
Net Occupancy	 	10,186	 	10,154	 	10,350	 	30,484	 	30,686	 	
Net Equipment	 	4,545	 	4,366	 	4,502	 	13,469	 	13,320	 	
Professional Fees	 	905	 	2,091	 	2,642	 	4,988	 	9,196	 	
FDIC Insurance	 	3,159	 	3,107	 	3,290	 	9,366	 	14,091	 	
Other	 	24,255	 	18,700	 	16,816	 	60,303	 	56,616	 	
Total Noninterest Expense	 	89,890	 	85,918	 	83,987	 	257,514	 	261,504	 	
Income Before Provision for Income Taxes	 	58,502	 	70,945	 	54,200	 	206,465	 	153,216	 	
Provision for Income Taxes	 	14,438	 	24,381	 	17,729	 	63,101	 	49,699	 	
Net Income	 	$	44,064	 	$	46,564	 	$	36,471	 	$	143,364	 	$	103,517	 	
Basic Earnings Per Share	 	$	0.91	 	$	0.97	 	$	0.76	 	$	2.98	 	$	2.17	 	
Diluted Earnings Per Share	 	$	0.91	 	$	0.96	 	$	0.76	 	$	2.96	 	$	2.16	 	
Dividends Declared Per Share	 	$	0.45	 	$	0.45	 	$	0.45	 	$	1.35	 	$	1.35	 	
Basic Weighted Average Shares	 	48,189,358	 	48,080,485	 	47,745,375	 	48,062,385	 	47,665,146	 	
Diluted Weighted Average Shares	 	48,462,154	 	48,415,602	 	48,045,873	 	48,386,647	 	47,930,271	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Condition	 	Table 4	
 
 	 	September 30,	 	June 30,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2010	 	2010	 	2009	 	2009	 	
Assets	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	2,641	 	$	4,062	 	$	8,755	 	$	5,863	 	
Funds Sold	 	174,288	 	355,891	 	291,546	 	401,200	 	
Investment Securities	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	6,213,949	 	5,980,759	 	5,330,834	 	4,827,588	 	
Held-to-Maturity (Fair Value of $148,631; $161,441; $186,668; and $201,118)	 	141,192	 	153,190	 	181,018	 	194,444	 	
Loans Held for Sale	 	18,765	 	13,179	 	16,544	 	19,346	 	
Loans and Leases	 	5,312,054	 	5,440,911	 	5,759,785	 	5,931,358	 	
Allowance for Loan and Lease Losses	 	(147,358	)	(147,358	)	(143,658	)	(142,658	)	
Net Loans and Leases	 	5,164,696	 	5,293,553	 	5,616,127	 	5,788,700	 	
Total Earning Assets	 	11,715,531	 	11,800,634	 	11,444,824	 	11,237,141	 	
Cash and Noninterest-Bearing Deposits	 	267,597	 	343,514	 	254,766	 	291,480	 	
Premises and Equipment	 	108,855	 	108,394	 	110,976	 	110,173	 	
Customers’ Acceptances	 	1,087	 	412	 	1,386	 	950	 	
Accrued Interest Receivable	 	40,606	 	41,420	 	45,334	 	43,047	 	
Foreclosed Real Estate	 	5,910	 	3,192	 	3,132	 	201	 	
Mortgage Servicing Rights	 	24,316	 	25,646	 	25,970	 	25,437	 	
Goodwill	 	31,517	 	31,517	 	31,517	 	34,959	 	
Other Assets	 	521,184	 	501,116	 	496,922	 	464,637	 	
Total Assets	 	$	12,716,603	 	$	12,855,845	 	$	12,414,827	 	$	12,208,025	 	
 	 	 	 	 	 	 	 	 	 	
Liabilities	 	 	 	 	 	 	 	 	 	
Deposits	 	 	 	 	 	 	 	 	 	
Noninterest-Bearing Demand	 	$	2,290,033	 	$	2,214,803	 	$	2,252,083	 	$	2,055,872	 	
Interest-Bearing Demand	 	1,814,934	 	1,615,464	 	1,609,413	 	1,588,705	 	
Savings	 	4,423,095	 	4,423,473	 	4,405,969	 	4,365,257	 	
Time	 	1,074,400	 	1,070,919	 	1,142,211	 	1,240,266	 	
Total Deposits	 	9,602,462	 	9,324,659	 	9,409,676	 	9,250,100	 	
Funds Purchased	 	9,832	 	9,832	 	8,888	 	8,670	 	
Short-Term Borrowings	 	7,100	 	7,000	 	6,900	 	7,200	 	
Securities Sold Under Agreements to Repurchase	 	1,616,243	 	2,081,393	 	1,618,717	 	1,524,755	 	
Long-Term Debt	 	40,292	 	40,300	 	90,317	 	91,424	 	
Banker’s Acceptances	 	1,087	 	412	 	1,386	 	950	 	
Retirement Benefits Payable	 	35,461	 	35,669	 	37,435	 	43,918	 	
Accrued Interest Payable	 	6,492	 	5,078	 	7,026	 	9,740	 	
Taxes Payable and Deferred Taxes	 	219,525	 	228,660	 	229,140	 	254,375	 	
Other Liabilities	 	138,548	 	109,831	 	109,369	 	114,094	 	
Total Liabilities	 	11,677,042	 	11,842,834	 	11,518,854	 	11,305,226	 	
Shareholders’ Equity	 	 	 	 	 	 	 	 	 	
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: September 30, 2010 - 57,115,287 / 48,265,014; June 30, 2010 - 57,100,287 / 48,264,157; December 31, 2009 - 57,028,239 / 48,018,943; and September 30, 2009 - 57,028,554 / 47,937,543)	 	570	 	570	 	569	 	569	 	
Capital Surplus	 	499,437	 	497,082	 	494,318	 	492,346	 	
Accumulated Other Comprehensive Income	 	66,953	 	61,220	 	6,925	 	37,307	 	
Retained Earnings	 	914,901	 	895,565	 	843,521	 	825,709	 	
Treasury Stock, at Cost (Shares: September 30, 2010 - 8,850,273; June 30, 2010 - 8,836,130; December 31, 2009 - 9,009,296; and September 30, 2009 - 9,091,011)	 	(442,300	)	(441,426	)	(449,360	)	(453,132	)	
Total Shareholders’ Equity	 	1,039,561	 	1,013,011	 	895,973	 	902,799	 	
Total Liabilities and Shareholders’ Equity	 	$	12,716,603	 	$	12,855,845	 	$	12,414,827	 	$	12,208,025	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Shareholders’ Equity	 	Table 5	
 
 	 	 	 	 	 	 	 	Accum.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Other	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Comprehensive	 	 	 	 	 	 	 	
 	 	 	 	Common	 	Capital	 	Income	 	Retained	 	Treasury	 	Comprehensive	 	
(dollars in thousands)	 	Total	 	Stock	 	Surplus	 	(Loss)	 	Earnings	 	Stock	 	Income	 	
Balance as of December 31, 2009	 	$	895,973	 	$	569	 	$	494,318	 	$	6,925	 	$	843,521	 	$	(449,360	)	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	143,364	 	—	 	—	 	—	 	143,364	 	—	 	$	143,364	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	 	58,886	 	—	 	—	 	58,886	 	—	 	—	 	58,886	 	
Amortization of Net Losses Related to Defined Benefit Plans	 	1,142	 	—	 	—	 	1,142	 	—	 	—	 	1,142	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	203,392	 	
Share-Based Compensation	 	2,703	 	—	 	2,703	 	—	 	—	 	—	 	 	 	
Common Stock Issued under Purchase and Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Compensation Plans and Related Tax Benefits (522,542 shares)	 	15,716	 	1	 	2,416	 	—	 	(6,850	)	20,149	 	 	 	
Common Stock Repurchased (276,471 shares)	 	(13,089	)	—	 	—	 	—	 	—	 	(13,089	)	 	 	
Cash Dividends Paid	 	(65,134	)	—	 	—	 	—	 	(65,134	)	—	 	 	 	
Balance as of September 30, 2010	 	$	1,039,561	 	$	570	 	$	499,437	 	$	66,953	 	$	914,901	 	$	(442,300	)	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance as of December 31, 2008	 	$	790,704	 	$	568	 	$	492,515	 	$	(28,888	)	$	787,924	 	$	(461,415	)	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	103,517	 	—	 	—	 	—	 	103,517	 	—	 	$	103,517	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	 	65,121	 	—	 	—	 	65,121	 	—	 	—	 	65,121	 	
Amortization of Net Losses Related to Defined Benefit Plans	 	1,074	 	—	 	—	 	1,074	 	—	 	—	 	1,074	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	169,712	 	
Share-Based Compensation	 	1,700	 	—	 	1,700	 	—	 	—	 	—	 	 	 	
Common Stock Issued under Purchase and Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Compensation Plans and Related Tax Benefits (209,847 shares)	 	6,202	 	1	 	(1,869	)	—	 	(1,101	)	9,171	 	 	 	
Common Stock Repurchased (25,675 shares)	 	(888	)	—	 	—	 	—	 	—	 	(888	)	 	 	
Cash Dividends Paid	 	(64,631	)	—	 	—	 	—	 	(64,631	)	—	 	 	 	
Balance as of September 30, 2009	 	$	902,799	 	$	569	 	$	492,346	 	$	37,307	 	$	825,709	 	$	(453,132	)	 	 	

 
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	 	
 	 	September 30, 2010	 	June 30, 2010	 	September 30, 2009	 	
 	 	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	 	$	4.4	 	$	—	 	0.49	%	$	5.3	 	$	—	 	0.17	%	$	5.1	 	$	—	 	0.28	%	
Funds Sold	 	303.4	 	0.2	 	0.27	 	586.8	 	0.4	 	0.27	 	489.7	 	0.3	 	0.26	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	6,158.5	 	41.0	 	2.66	 	5,531.2	 	45.2	 	3.27	 	4,491.2	 	46.7	 	4.16	 	
Held-to-Maturity	 	148.2	 	1.6	 	4.19	 	160.2	 	1.7	 	4.25	 	202.0	 	2.2	 	4.31	 	
Loans Held for Sale	 	12.7	 	0.1	 	4.59	 	8.5	 	0.1	 	4.46	 	25.2	 	0.2	 	2.95	 	
Loans and Leases1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	750.6	 	7.8	 	4.13	 	765.5	 	7.9	 	4.12	 	884.4	 	9.0	 	4.06	 	
Commercial Mortgage	 	808.8	 	10.4	 	5.10	 	826.2	 	10.5	 	5.10	 	787.0	 	10.2	 	5.14	 	
Construction	 	87.6	 	1.1	 	4.95	 	100.3	 	1.3	 	5.28	 	140.9	 	1.4	 	3.81	 	
Commercial Lease Financing	 	380.1	 	2.6	 	2.79	 	400.8	 	3.0	 	2.95	 	464.0	 	3.0	 	2.56	 	
Residential Mortgage	 	2,076.0	 	29.5	 	5.68	 	2,109.1	 	29.9	 	5.66	 	2,273.8	 	33.0	 	5.81	 	
Home Equity	 	849.4	 	10.7	 	4.99	 	875.8	 	10.9	 	5.01	 	963.3	 	12.3	 	5.08	 	
Automobile	 	229.1	 	4.4	 	7.54	 	249.4	 	4.7	 	7.63	 	304.5	 	6.1	 	7.88	 	
Other2	 	186.6	 	3.5	 	7.55	 	195.3	 	3.7	 	7.63	 	217.1	 	4.3	 	7.95	 	
Total Loans and Leases	 	5,368.2	 	70.0	 	5.20	 	5,522.4	 	71.9	 	5.22	 	6,035.0	 	79.3	 	5.24	 	
Other	 	79.8	 	0.3	 	1.39	 	79.8	 	0.3	 	1.39	 	79.7	 	0.3	 	1.39	 	
Total Earning Assets3	 	12,075.2	 	113.2	 	3.74	 	11,894.2	 	119.6	 	4.03	 	11,327.9	 	129.0	 	4.54	 	
Cash and Noninterest-Bearing Deposits	 	227.3	 	 	 	 	 	221.0	 	 	 	 	 	203.5	 	 	 	 	 	
Other Assets	 	494.7	 	 	 	 	 	488.0	 	 	 	 	 	457.6	 	 	 	 	 	
Total Assets	 	$	12,797.2	 	 	 	 	 	$	12,603.2	 	 	 	 	 	$	11,989.0	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,770.1	 	0.2	 	0.06	 	$	1,659.8	 	0.3	 	0.06	 	$	1,625.6	 	0.2	 	0.06	 	
Savings	 	4,460.9	 	3.5	 	0.31	 	4,477.8	 	4.2	 	0.38	 	4,190.2	 	6.6	 	0.63	 	
Time	 	1,075.7	 	3.3	 	1.22	 	1,093.0	 	3.4	 	1.24	 	1,264.7	 	5.4	 	1.69	 	
Total Interest-Bearing Deposits	 	7,306.7	 	7.0	 	0.38	 	7,230.6	 	7.9	 	0.44	 	7,080.5	 	12.2	 	0.69	 	
Short-Term Borrowings	 	26.6	 	—	 	0.15	 	17.7	 	—	 	0.13	 	18.1	 	—	 	0.12	 	
Securities Sold Under Agreements to Repurchase	 	1,706.2	 	6.7	 	1.53	 	1,785.2	 	6.5	 	1.44	 	1,464.3	 	6.4	 	1.71	 	
Long-Term Debt	 	40.3	 	0.7	 	6.68	 	74.4	 	1.0	 	5.52	 	91.4	 	1.2	 	5.26	 	
Total Interest-Bearing Liabilities	 	9,079.8	 	14.4	 	0.63	 	9,107.9	 	15.4	 	0.68	 	8,654.3	 	19.8	 	0.91	 	
Net Interest Income	 	 	 	$	98.8	 	 	 	 	 	$	104.2	 	 	 	 	 	$	109.2	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.11	%	 	 	 	 	3.35	%	 	 	 	 	3.63	%	
Net Interest Margin	 	 	 	 	 	3.27	%	 	 	 	 	3.51	%	 	 	 	 	3.85	%	
Noninterest-Bearing Demand Deposits	 	2,270.2	 	 	 	 	 	2,157.0	 	 	 	 	 	2,050.5	 	 	 	 	 	
Other Liabilities	 	396.7	 	 	 	 	 	356.1	 	 	 	 	 	404.2	 	 	 	 	 	
Shareholders’ Equity	 	1,050.5	 	 	 	 	 	982.2	 	 	 	 	 	880.0	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	12,797.2	 	 	 	 	 	$	12,603.2	 	 	 	 	 	$	11,989.0	 	 	 	 	 	

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 $199,000, $237,000, and $329,000 for the three months ended September 30, 2010, June 30, 2010, and Septmeber 30, 2009, respectively.	

 
Bank of Hawaii Corporation and Subsidiaries	 	
Average Balances and Interest Rates - Taxable Equivalent Basis	Table 6b	
 
 	 	Nine Months Ended	 	Nine Months Ended	 	
 	 	September 30, 2010	 	September 30, 2009	 	
 	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	
(dollars in millions)	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	5.2	 	$	—	 	0.54	%	$	5.0	 	$	—	 	0.49	%	
Funds Sold	 	450.5	 	0.9	 	0.27	 	743.7	 	1.4	 	0.25	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	—	 	—	 	—	 	16.1	 	0.6	 	4.92	 	
Available-for-Sale	 	5,646.9	 	130.3	 	3.08	 	3,600.8	 	117.8	 	4.36	 	
Held-to-Maturity	 	160.7	 	5.1	 	4.24	 	218.9	 	7.1	 	4.33	 	
Loans Held for Sale	 	10.0	 	0.8	 	10.16	 	23.7	 	0.7	 	3.82	 	
Loans and Leases1	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	768.1	 	25.9	 	4.50	 	966.1	 	29.4	 	4.06	 	
Commercial Mortgage	 	824.2	 	31.4	 	5.10	 	760.7	 	29.7	 	5.23	 	
Construction	 	98.6	 	3.7	 	5.08	 	146.5	 	4.4	 	4.02	 	
Commercial Lease Financing	 	396.0	 	9.0	 	3.03	 	459.0	 	10.1	 	2.95	 	
Residential Mortgage	 	2,114.9	 	90.3	 	5.69	 	2,356.1	 	104.0	 	5.89	 	
Home Equity	 	878.0	 	32.9	 	5.01	 	996.9	 	38.0	 	5.09	 	
Automobile	 	250.2	 	14.3	 	7.64	 	328.6	 	19.5	 	7.93	 	
Other2	 	194.7	 	11.2	 	7.65	 	231.3	 	13.7	 	7.90	 	
Total Loans and Leases	 	5,524.7	 	218.7	 	5.29	 	6,245.2	 	248.8	 	5.32	 	
Other	 	79.8	 	0.8	 	1.39	 	79.7	 	0.8	 	1.39	 	
Total Earning Assets3	 	11,877.8	 	356.6	 	4.01	 	10,933.1	 	377.2	 	4.60	 	
Cash and Noninterest-Bearing Deposits	 	226.1	 	 	 	 	 	216.8	 	 	 	 	 	
Other Assets	 	490.4	 	 	 	 	 	466.3	 	 	 	 	 	
Total Assets	 	$	12,594.3	 	 	 	 	 	$	11,616.2	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,697.7	 	0.8	 	0.06	 	$	1,806.4	 	0.9	 	0.06	 	
Savings	 	4,457.7	 	12.2	 	0.37	 	3,922.4	 	22.6	 	0.77	 	
Time	 	1,101.5	 	10.3	 	1.25	 	1,364.5	 	20.3	 	1.98	 	
Total Interest-Bearing Deposits	 	7,256.9	 	23.3	 	0.43	 	7,093.3	 	43.8	 	0.82	 	
Short-Term Borrowings	 	24.3	 	—	 	0.12	 	17.7	 	—	 	0.11	 	
Securities Sold Under Agreements to Repurchase	 	1,675.0	 	19.5	 	1.54	 	1,191.2	 	19.5	 	2.16	 	
Long-Term Debt	 	68.2	 	2.9	 	5.63	 	103.4	 	4.2	 	5.47	 	
Total Interest-Bearing Liabilities	 	9,024.4	 	45.7	 	0.67	 	8,405.6	 	67.5	 	1.07	 	
Net Interest Income	 	 	 	$	310.9	 	 	 	 	 	$	309.7	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.34	%	 	 	 	 	3.53	%	
Net Interest Margin	 	 	 	 	 	3.50	%	 	 	 	 	3.78	%	
Noninterest-Bearing Demand Deposits	 	2,195.5	 	 	 	 	 	1,943.0	 	 	 	 	 	
Other Liabilities	 	380.1	 	 	 	 	 	415.3	 	 	 	 	 	
Shareholders’ Equity	 	994.3	 	 	 	 	 	852.3	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	12,594.3	 	 	 	 	 	$	11,616.2	 	 	 	 	 	

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 $675,000 and $886,000 for the nine months ended September 30, 2010 and 2009, respectively.

 
Bank of Hawaii Corporation and Subsidiaries	 	
Analysis of Change in Net Interest Income - Taxable Equivalent Basis	Table 7a	
 
 	 	Three Months Ended September 30, 2010	 	
 	 	Compared to June 30, 2010	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Time 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	 	 	
Funds Sold	 	$	(0.2	)	$	—	 	$	—	 	$	(0.2	)	
Investment Securities	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	4.8	 	(9.0	)	—	 	(4.2	)	
Held-to-Maturity	 	(0.1	)	—	 	—	 	(0.1	)	
Loans and Leases	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(0.2	)	—	 	0.1	 	(0.1	)	
Commercial Mortgage	 	(0.2	)	—	 	0.1	 	(0.1	)	
Construction	 	(0.1	)	(0.1	)	—	 	(0.2	)	
Commercial Lease Financing	 	(0.2	)	(0.2	)	—	 	(0.4	)	
Residential Mortgage	 	(0.5	)	0.1	 	—	 	(0.4	)	
Home Equity	 	(0.3	)	—	 	0.1	 	(0.2	)	
Automobile	 	(0.4	)	—	 	0.1	 	(0.3	)	
Other2	 	(0.2	)	(0.1	)	0.1	 	(0.2	)	
Total Loans and Leases	 	(2.1	)	(0.3	)	0.5	 	(1.9	)	
Total Change in Interest Income	 	2.4	 	(9.3	)	0.5	 	(6.4	)	
 	 	 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	
Demand	 	(0.1	)	—	 	—	 	(0.1	)	
Savings	 	—	 	(0.8	)	0.1	 	(0.7	)	
Time	 	—	 	(0.1	)	—	 	(0.1	)	
Total Interest-Bearing Deposits	 	(0.1	)	(0.9	)	0.1	 	(0.9	)	
Securities Sold Under Agreements to Repurchase	 	(0.3	)	0.4	 	0.1	 	0.2	 	
Long-Term Debt	 	(0.5	)	0.2	 	—	 	(0.3	)	
Total Change in Interest Expense	 	(0.9	)	(0.3	)	0.2	 	(1.0	)	
 	 	 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	3.3	 	$	(9.0	)	$	0.3	 	$	(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, rate, and time 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 September 30, 2010	 	
 	 	Compared to September 30, 2009	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	(0.1	)	$	—	 	$	(0.1	)	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	14.2	 	(19.9	)	(5.7	)	
Held-to-Maturity	 	(0.6	)	—	 	(0.6	)	
Loans Held for Sale	 	(0.1	)	—	 	(0.1	)	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	(1.4	)	0.2	 	(1.2	)	
Commercial Mortgage	 	0.3	 	(0.1	)	0.2	 	
Construction	 	(0.6	)	0.3	 	(0.3	)	
Commercial Lease Financing	 	(0.7	)	0.3	 	(0.4	)	
Residential Mortgage	 	(2.8	)	(0.7	)	(3.5	)	
Home Equity	 	(1.4	)	(0.2	)	(1.6	)	
Automobile	 	(1.4	)	(0.3	)	(1.7	)	
Other2	 	(0.6	)	(0.2	)	(0.8	)	
Total Loans and Leases	 	(8.6	)	(0.7	)	(9.3	)	
Total Change in Interest Income	 	4.8	 	(20.6	)	(15.8	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Savings	 	0.4	 	(3.5	)	(3.1	)	
Time	 	(0.7	)	(1.4	)	(2.1	)	
Total Interest-Bearing Deposits	 	(0.3	)	(4.9	)	(5.2	)	
Securities Sold Under Agreements to Repurchase	 	1.0	 	(0.7	)	0.3	 	
Long-Term Debt	 	(0.8	)	0.3	 	(0.5	)	
Total Change in Interest Expense	 	(0.1	)	(5.3	)	(5.4	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	4.9	 	$	(15.3	)	$	(10.4	)	

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 7c	
 
 	 	Nine Months Ended September 30, 2010	 	
 	 	Compared to September 30, 2009	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	(0.6	)	$	0.1	 	$	(0.5	)	
Investment Securities	 	 	 	 	 	 	 	
Trading	 	(0.3	)	(0.3	)	(0.6	)	
Available-for-Sale	 	53.8	 	(41.3	)	12.5	 	
Held-to-Maturity	 	(1.9	)	(0.1	)	(2.0	)	
Loans Held for Sale	 	(0.6	)	0.7	 	0.1	 	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	(6.4	)	2.9	 	(3.5	)	
Commercial Mortgage	 	2.5	 	(0.8	)	1.7	 	
Construction	 	(1.7	)	1.0	 	(0.7	)	
Commercial Lease Financing	 	(1.4	)	0.3	 	(1.1	)	
Residential Mortgage	 	(10.3	)	(3.4	)	(13.7	)	
Home Equity	 	(4.5	)	(0.6	)	(5.1	)	
Automobile	 	(4.5	)	(0.7	)	(5.2	)	
Other2	 	(2.1	)	(0.4	)	(2.5	)	
Total Loans and Leases	 	(28.4	)	(1.7	)	(30.1	)	
Total Change in Interest Income	 	22.0	 	(42.6	)	(20.6	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	(0.1	)	—	 	(0.1	)	
Savings	 	2.7	 	(13.1	)	(10.4	)	
Time	 	(3.4	)	(6.6	)	(10.0	)	
Total Interest-Bearing Deposits	 	(0.8	)	(19.7	)	(20.5	)	
Securities Sold Under Agreements to Repurchase	 	6.6	 	(6.6	)	—	 	
Long-Term Debt	 	(1.5	)	0.2	 	(1.3	)	
Total Change in Interest Expense	 	4.3	 	(26.1	)	(21.8	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	17.7	 	$	(16.5	)	$	1.2	 	

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	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands)	 	2010	 	2010	 	2009	 	2010	 	2009	 	
Salaries	 	$	30,080	 	$	29,942	 	$	29,988	 	$	89,165	 	$	90,565	 	
Incentive Compensation	 	3,403	 	3,447	 	5,524	 	10,296	 	12,223	 	
Share-Based Compensation and Cash Grants for the Purchase of Company Stock	 	1,045	 	3,984	 	595	 	5,585	 	1,986	 	
Commission Expense	 	1,836	 	1,259	 	1,523	 	4,441	 	5,528	 	
Retirement and Other Benefits	 	4,178	 	3,857	 	3,962	 	12,144	 	12,385	 	
Payroll Taxes	 	2,287	 	2,331	 	2,176	 	8,051	 	8,020	 	
Medical, Dental, and Life Insurance	 	2,263	 	2,481	 	2,619	 	7,224	 	6,519	 	
Separation Expense	 	1,748	 	199	 	—	 	1,998	 	369	 	
Total Salaries and Benefits	 	$	46,840	 	$	47,500	 	$	46,387	 	$	138,904	 	$	137,595	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Loan and Lease Portfolio Balances	 	Table 9	
 
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2010	 	2010	 	2010	 	2009	 	2009	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	736,385	 	$	758,851	 	$	782,298	 	$	795,167	 	$	845,056	 	
Commercial Mortgage	 	817,752	 	816,165	 	834,086	 	841,431	 	777,498	 	
Construction	 	88,671	 	88,823	 	104,349	 	108,395	 	137,414	 	
Lease Financing	 	353,962	 	399,744	 	398,939	 	412,933	 	458,696	 	
Total Commercial	 	1,996,770	 	2,063,583	 	2,119,672	 	2,157,926	 	2,218,664	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	2,073,340	 	2,087,380	 	2,138,094	 	2,190,677	 	2,246,729	 	
Home Equity	 	836,990	 	861,196	 	892,109	 	921,571	 	952,076	 	
Automobile	 	221,265	 	238,671	 	260,472	 	283,937	 	299,657	 	
Other1	 	183,689	 	190,081	 	199,734	 	205,674	 	214,232	 	
Total Consumer	 	3,315,284	 	3,377,328	 	3,490,409	 	3,601,859	 	3,712,694	 	
Total Loans and Leases	 	$	5,312,054	 	$	5,440,911	 	$	5,610,081	 	$	5,759,785	 	$	5,931,358	 	
 
Higher Risk Loans Outstanding
 
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2010	 	2010	 	2010	 	2009	 	2009	 	
Residential Home Building2	 	$	18,444	 	$	18,993	 	$	29,475	 	$	31,067	 	$	38,592	 	
Residential Land Loans3	 	28,149	 	30,262	 	33,514	 	37,873	 	43,128	 	
Home Equity Loans4	 	23,957	 	25,055	 	24,595	 	28,076	 	24,339	 	
Air Transportation5	 	38,611	 	39,165	 	39,743	 	50,426	 	60,996	 	
Total Higher Risk Loans	 	$	109,161	 	$	113,475	 	$	127,327	 	$	147,442	 	$	167,055	 	

1   Comprised of other revolving credit, installment, and lease financing.
2   Residential home building loans were $39.7 million as of September 30, 2010. Higher risk loans within this segment are defined as those loans with a well-defined weakness or weaknesses that jeopardizes the orderly repayment of the loan.
3   We consider all of our residential land loans, which are consumer loans secured by unimproved lots, to be of higher risk due to the volatility in the value of the underlying collateral.
4   Higher risk home equity loans are defined as those loans originated in 2005 or later, with current monitoring credit scores below 600, and with original loan-to-value ratios greater than 70%.
5   We consider all of our air transportation leases to be of higher risk due to the weak financial profile of the industry.
 
Deposits
 
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2010	 	2010	 	2010 6	 	2009 6	 	2009 6	 	
Consumer	 	$	4,976,317	 	$	4,925,579	 	$	4,940,576	 	$	4,926,567	 	$	4,776,626	 	
Commercial	 	4,053,306	 	4,036,679	 	4,126,287	 	4,115,286	 	4,002,619	 	
Public and Other	 	572,839	 	362,401	 	427,221	 	367,823	 	470,855	 	
Total Deposits	 	$	9,602,462	 	$	9,324,659	 	$	9,494,084	 	$	9,409,676	 	$	9,250,100	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More	 	Table 10	
 
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2010	 	2010	 	2010	 	2009	 	2009	 	
Non-Performing Assets1	 	 	 	 	 	 	 	 	 	 	 	
Non-Accrual Loans and Leases	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	1,287	 	$	741	 	$	3,342	 	$	6,646	 	$	9,924	 	
Commercial Mortgage	 	5,071	 	3,476	 	1,662	 	1,167	 	1,193	 	
Construction	 	3,569	 	5,640	 	7,297	 	8,154	 	15,534	 	
Lease Financing	 	117	 	63	 	73	 	631	 	690	 	
Total Commercial	 	10,044	 	9,920	 	12,374	 	16,598	 	27,341	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	26,917	 	27,491	 	23,214	 	19,893	 	16,718	 	
Home Equity	 	2,303	 	2,638	 	2,844	 	5,153	 	3,726	 	
Other 2	 	—	 	—	 	—	 	550	 	550	 	
Total Consumer	 	29,220	 	30,129	 	26,058	 	25,596	 	20,994	 	
Total Non-Accrual Loans and Leases	 	39,264	 	40,049	 	38,432	 	42,194	 	48,335	 	
Non-Accrual Loans Held for Sale	 	—	 	—	 	—	 	3,005	 	—	 	
Foreclosed Real Estate	 	5,910	 	3,192	 	3,192	 	3,132	 	201	 	
Total Non-Performing Assets	 	$	45,174	 	$	43,241	 	$	41,624	 	$	48,331	 	$	48,536	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Accruing Loans and Leases Past Due 90 Days or More	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	62	 	$	—	 	$	2,192	 	$	623	 	$	137	 	
Construction	 	—	 	—	 	2,170	 	—	 	3,005	 	
Lease Financing	 	—	 	—	 	—	 	120	 	—	 	
Total Commercial	 	62	 	—	 	4,362	 	743	 	3,142	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	8,031	 	9,019	 	8,136	 	8,979	 	5,951	 	
Home Equity	 	1,246	 	2,256	 	1,608	 	2,210	 	1,698	 	
Automobile	 	348	 	464	 	571	 	875	 	749	 	
Other 2	 	857	 	1,161	 	1,345	 	886	 	739	 	
Total Consumer	 	10,482	 	12,900	 	11,660	 	12,950	 	9,137	 	
Total Accruing Loans and Leases Past Due 90 Days or More	 	$	10,544	 	$	12,900	 	$	16,022	 	$	13,693	 	$	12,279	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Loans and Leases	 	$	5,312,054	 	$	5,440,911	 	$	5,610,081	 	$	5,759,785	 	$	5,931,358	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	 	0.74	%	0.74	%	0.69	%	0.73	%	0.81	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets to Total Loans and Leases, Loans Held for Sale, and Foreclosed Real Estate	 	0.85	%	0.79	%	0.74	%	0.84	%	0.82	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases, Commercial Loans Held for Sale, and Commercial Foreclosed Real Estate	 	0.75	%	0.62	%	0.72	%	1.03	%	1.23	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate	 	0.91	%	0.90	%	0.76	%	0.72	%	0.57	%	
 	 	 	 	 	 	 	 	 	 	 	 	
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	 	1.04	%	1.03	%	1.02	%	1.07	%	1.02	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Quarter to Quarter Changes in Non-Performing Assets 1	 	 	 	 	 	 	 	 	 	 	 	
Balance at Beginning of Quarter	 	$	43,241	 	$	41,624	 	$	48,331	 	$	48,536	 	$	39,054	 	
Additions	 	10,606	 	10,761	 	9,533	 	14,874	 	22,856	 	
Reductions	 	 	 	 	 	 	 	 	 	 	 	
Payments	 	(3,432	)	(4,414	)	(5,689	)	(4,128	)	(6,899	)	
Return to Accrual Status	 	(964	)	—	 	(3,505	)	(1,818	)	(3,373	)	
Transfer to Foreclosed Real Estate	 	(2,070	)	—	 	—	 	—	 	—	 	
Sales of Foreclosed Real Estate	 	(700	)	—	 	—	 	(38	)	(237	)	
Charge-offs/Write-downs	 	(1,507	)	(4,730	)	(7,046	)	(9,095	)	(2,865	)	
Total Reductions	 	(8,673	)	(9,144	)	(16,240	)	(15,079	)	(13,374	)	
Balance at End of Quarter	 	$	45,174	 	$	43,241	 	$	41,624	 	$	48,331	 	$	48,536	 	

1	Excluded from non-performing assets were 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.	
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	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands)	 	2010	 	2010	 	2009	 	2010	 	2009	 	
Balance at Beginning of Period	 	$	 152,777	 	$	 151,777	 	$	 142,835	 	$	 149,077	 	$	 128,667	 	
Loans and Leases Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(7,635	)	(3,056	)	(4,769	)	(14,597	)	(23,493	)	
Commercial Mortgage	 	—	 	(1,000	)	(2,092	)	(1,303	)	(2,092	)	
Construction	 	—	 	(1,417	)	(5,845	)	(2,274	)	(5,845	)	
Lease Financing	 	(108	)	(107	)	(120	)	(405	)	(4,613	)	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	(1,325	)	(4,377	)	(2,430	)	(8,957	)	(5,071	)	
Home Equity	 	(2,871	)	(2,886	)	(3,614	)	(13,193	)	(9,233	)	
Automobile	 	(1,530	)	(1,752	)	(2,602	)	(5,309	)	(7,694	)	
Other1	 	(2,826	)	(2,530	)	(3,032	)	(8,178	)	(10,252	)	
Total Loans and Leases Charged-Off	 	(16,295	)	(17,125	)	(24,504	)	(54,216	)	(68,293	)	
Recoveries on Loans and Leases Previously Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	433	 	367	 	252	 	1,658	 	1,022	 	
Commercial Mortgage	 	—	 	—	 	—	 	24	 	—	 	
Lease Financing	 	28	 	11	 	49	 	40	 	81	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	696	 	236	 	448	 	1,354	 	719	 	
Home Equity	 	333	 	197	 	67	 	630	 	239	 	
Automobile	 	822	 	826	 	849	 	2,401	 	2,311	 	
Other1	 	624	 	549	 	581	 	1,800	 	2,004	 	
Total Recoveries on Loans and Leases Previously Charged-Off	 	2,936	 	2,186	 	2,246	 	7,907	 	6,376	 	
Net Loans and Leases Charged-Off	 	(13,359	)	(14,939	)	(22,258	)	(46,309	)	(61,917	)	
Provision for Credit Losses	 	13,359	 	15,939	 	27,500	 	50,009	 	81,077	 	
Provision for Unfunded Commitments	 	—	 	—	 	—	 	—	 	250	 	
Balance at End of Period2	 	$	 152,777	 	$	 152,777	 	$	 148,077	 	$	 152,777	 	$	 148,077	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Components	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	 147,358	 	$	 147,358	 	$	 142,658	 	$	 147,358	 	$	 142,658	 	
Reserve for Unfunded Commitments	 	5,419	 	5,419	 	5,419	 	5,419	 	5,419	 	
Total Reserve for Credit Losses	 	$	 152,777	 	$	 152,777	 	$	 148,077	 	$	 152,777	 	$	 148,077	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases Outstanding	 	$	 5,368,177	 	$	 5,522,423	 	$	 6,034,956	 	$	 5,524,672	 	$	 6,245,117	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)	 	0.99	%	1.09	%	1.46	%	1.12	%	1.33	%	
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding	 	2.77	%	2.71	%	2.41	%	2.77	%	2.41	%	

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 September 30, 2010	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	46,746	 	$	35,236	 	$	4,043	 	$	12,601	 	$	98,626	 	
Provision for Credit Losses	 	6,288	 	7,121	 	(19	)	(31	)	13,359	 	
Net Interest Income After Provision for Credit Losses	 	40,458	 	28,115	 	4,062	 	12,632	 	85,267	 	
Noninterest Income	 	28,049	 	9,745	 	16,478	 	8,853	 	63,125	 	
Noninterest Expense	 	(43,391	)	(23,370	)	(13,851	)	(9,278	)	(89,890	)	
Income Before Provision for Income Taxes	 	25,116	 	14,490	 	6,689	 	12,207	 	58,502	 	
Provision for Income Taxes	 	(9,293	)	(421	)	(2,475	)	(2,249	)	(14,438	)	
Net Income	 	15,823	 	14,069	 	4,214	 	9,958	 	44,064	 	
Total Assets as of September 30, 2010	 	$	3,094,047	 	$	2,251,004	 	$	242,312	 	$	7,129,240	 	$	12,716,603	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended September 30, 2009 1	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	53,441	 	$	40,232	 	$	4,275	 	$	10,939	 	$	108,887	 	
Provision for Credit Losses	 	15,599	 	11,918	 	33	 	(50	)	27,500	 	
Net Interest Income After Provision for Credit Losses	 	37,842	 	28,314	 	4,242	 	10,989	 	81,387	 	
Noninterest Income	 	25,095	 	14,668	 	14,026	 	3,011	 	56,800	 	
Noninterest Expense	 	(42,380	)	(25,072	)	(14,952	)	(1,583	)	(83,987	)	
Income Before Provision for Income Taxes	 	20,557	 	17,910	 	3,316	 	12,417	 	54,200	 	
Provision for Income Taxes	 	(7,636	)	(6,037	)	(1,227	)	(2,829	)	(17,729	)	
Net Income	 	12,921	 	11,873	 	2,089	 	9,588	 	36,471	 	
Total Assets as of September 30, 20091	 	$	3,441,050	 	$	2,547,978	 	$	253,580	 	$	5,965,417	 	$	12,208,025	 	

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	 	
Nine Months Ended September 30, 2010	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	144,311	 	$	112,682	 	$	12,582	 	$	40,632	 	$	310,207	 	
Provision for Credit Losses	 	31,516	 	18,468	 	69	 	(44	)	50,009	 	
Net Interest Income After Provision for Credit Losses	 	112,795	 	94,214	 	12,513	 	40,676	 	260,198	 	
Noninterest Income	 	77,322	 	31,461	 	45,814	 	49,184	 	203,781	 	
Noninterest Expense	 	(129,160	)	(72,210	)	(43,450	)	(12,694	)	(257,514	)	
Income Before Provision for Income Taxes	 	60,957	 	53,465	 	14,877	 	77,166	 	206,465	 	
Provision for Income Taxes	 	(22,554	)	(14,742	)	(5,505	)	(20,300	)	(63,101	)	
Net Income	 	38,403	 	38,723	 	9,372	 	56,866	 	143,364	 	
Total Assets as of September 30, 2010	 	$	3,094,047	 	$	2,251,004	 	$	242,312	 	$	7,129,240	 	$	12,716,603	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Nine Months Ended September 30, 2009 1	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	164,534	 	$	121,328	 	$	12,593	 	$	10,345	 	$	308,800	 	
Provision for Credit Losses	 	44,921	 	34,868	 	1,583	 	(295	)	81,077	 	
Net Interest Income After Provision for Credit Losses	 	119,613	 	86,460	 	11,010	 	10,640	 	227,723	 	
Noninterest Income	 	78,761	 	55,032	 	43,086	 	10,118	 	186,997	 	
Noninterest Expense	 	(130,165	)	(78,453	)	(47,309	)	(5,577	)	(261,504	)	
Income Before Provision for Income Taxes	 	68,209	 	63,039	 	6,787	 	15,181	 	153,216	 	
Provision for Income Taxes	 	(25,287	)	(26,120	)	(2,511	)	4,219	 	(49,699	)	
Net Income	 	42,922	 	36,919	 	4,276	 	19,400	 	103,517	 	
Total Assets as of September 30, 20091	 	$	3,441,050	 	$	2,547,978	 	$	253,580	 	$	5,965,417	 	$	12,208,025	 	

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	 	
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands, except per share amounts)	 	2010	 	2010	 	2010	 	2009	 	2009	 	
Quarterly Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	70,198	 	$	71,997	 	$	77,271	 	$	77,457	 	$	79,530	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	40,775	 	44,989	 	43,841	 	41,369	 	46,419	 	
Held-to-Maturity	 	1,553	 	1,700	 	1,863	 	2,018	 	2,179	 	
Deposits	 	5	 	3	 	13	 	2	 	3	 	
Funds Sold	 	211	 	396	 	309	 	353	 	320	 	
Other	 	278	 	277	 	277	 	277	 	277	 	
Total Interest Income	 	113,020	 	119,362	 	123,574	 	121,476	 	128,728	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	7,041	 	7,930	 	8,307	 	10,317	 	12,235	 	
Securities Sold Under Agreements to Repurchase	 	6,670	 	6,472	 	6,429	 	6,411	 	6,394	 	
Funds Purchased	 	10	 	6	 	7	 	7	 	5	 	
Long-Term Debt	 	673	 	1,026	 	1,178	 	1,207	 	1,207	 	
Total Interest Expense	 	14,394	 	15,434	 	15,921	 	17,942	 	19,841	 	
Net Interest Income	 	98,626	 	103,928	 	107,653	 	103,534	 	108,887	 	
Provision for Credit Losses	 	13,359	 	15,939	 	20,711	 	26,801	 	27,500	 	
Net Interest Income After Provision for Credit Losses	 	85,267	 	87,989	 	86,942	 	76,733	 	81,387	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	10,534	 	11,457	 	11,708	 	11,746	 	10,915	 	
Mortgage Banking	 	6,811	 	3,752	 	3,464	 	4,218	 	4,656	 	
Service Charges on Deposit Accounts	 	12,737	 	14,856	 	13,814	 	14,160	 	14,014	 	
Fees, Exchange, and Other Service Charges	 	15,500	 	15,806	 	14,504	 	14,935	 	14,801	 	
Investment Securities Gains (Losses), Net	 	7,877	 	14,951	 	20,021	 	25,707	 	(5	)	
Insurance	 	2,646	 	2,291	 	2,715	 	2,326	 	7,304	 	
Other	 	7,020	 	5,761	 	5,556	 	7,719	 	5,115	 	
Total Noninterest Income	 	63,125	 	68,874	 	71,782	 	80,811	 	56,800	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	46,840	 	47,500	 	44,564	 	50,973	 	46,387	 	
Net Occupancy	 	10,186	 	10,154	 	10,144	 	10,367	 	10,350	 	
Net Equipment	 	4,545	 	4,366	 	4,558	 	4,393	 	4,502	 	
Professional Fees	 	905	 	2,091	 	1,992	 	3,243	 	2,642	 	
FDIC Insurance	 	3,159	 	3,107	 	3,100	 	3,251	 	3,290	 	
Other	 	24,255	 	18,700	 	17,348	 	16,293	 	16,816	 	
Total Noninterest Expense	 	89,890	 	85,918	 	81,706	 	88,520	 	83,987	 	
Income Before Provision for Income Taxes	 	58,502	 	70,945	 	77,018	 	69,024	 	54,200	 	
Provision for Income Taxes	 	14,438	 	24,381	 	24,282	 	28,508	 	17,729	 	
Net Income	 	$	44,064	 	$	46,564	 	$	52,736	 	$	40,516	 	$	36,471	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Basic Earnings Per Share	 	$	0.91	 	$	0.97	 	$	1.10	 	$	0.85	 	$	0.76	 	
Diluted Earnings Per Share	 	$	0.91	 	$	0.96	 	$	1.09	 	$	0.84	 	$	0.76	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	$	5,312,054	 	$	5,440,911	 	$	5,610,081	 	$	5,759,785	 	$	5,931,358	 	
Total Assets	 	12,716,603	 	12,855,845	 	12,435,670	 	12,414,827	 	12,208,025	 	
Total Deposits	 	9,602,462	 	9,324,659	 	9,494,084	 	9,409,676	 	9,250,100	 	
Total Shareholders’ Equity	 	1,039,561	 	1,013,011	 	939,372	 	895,973	 	902,799	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.37	%	1.48	%	1.73	%	1.31	%	1.21	%	
Return on Average Shareholders’ Equity	 	16.64	 	19.01	 	22.54	 	16.91	 	16.44	 	
Efficiency Ratio1	 	55.57	 	49.72	 	45.54	 	48.02	 	50.69	 	
Net Interest Margin2	 	3.27	 	3.51	 	3.72	 	3.57	 	3.85	 	

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.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Hawaii Economic Trends	 	Table 14	
 
 	 	Eight Months Ended	 	Year Ended	 	
($ in millions; jobs in thousands)	 	August 31, 2010	 	December 31, 2009	 	December 31, 2008	 	
Hawaii Economic Trends	 	 	 	 	 	 	 	 	 	 	 	 	 	
State General Fund Revenues1	 	$	2,836.2	 	7.2	%	$	4,018.2	 	(12.8	)%	$	4,608.6	 	(1.6	)%	
General Excise and Use Tax Revenue 1	 	$	1,596.4	 	2.1	 	$	2,296.3	 	(10.6	)%	$	2,567.8	 	(2.1	)%	
Jobs, seasonally adjusted2	 	586.5	 	0.1	 	586.1	 	(3.2	)	605.6	 	(3.5	)	
 
 	 	September 30,	 	December 31,	 	September 30,	 	December 31,	 	
(annual percentage, except 2009 and 2010)	 	2010	 	2009	 	2009	 	2008	 	2007	 	
Unemployment3	 	 	 	 	 	 	 	 	 	 	 	
Statewide, seasonally adjusted	 	6.3	%	6.8	%	7.0	%	5.6	%	3.0	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Oahu	 	5.3	 	5.3	 	6.2	 	3.5	 	2.5	 	
Island of Hawaii	 	9.5	 	9.6	 	10.4	 	5.5	 	3.3	 	
Maui	 	7.9	 	8.8	 	9.3	 	4.5	 	2.8	 	
Kauai	 	8.6	 	8.9	 	9.2	 	4.4	 	2.5	 	
 
 	 	September 30,	 	
(percentage change, except months of inventory)	 	2010	 	2009	 	
Housing Trends (Single Family Oahu)4	 	 	 	 	 	
Median Home Price	 	4.2	%	(8.0	)%	
Home Sales Volume (units)	 	20.4	%	(12.4	)%	
Months of Inventory	 	6.3	 	8.6	 	
 
 	 	Monthly Visitor Arrivals,	 	Percentage Change	 	
(in thousands)	 	Seasonally Adjusted	 	from Previous Month	 	
Tourism2	 	 	 	 	 	
 	 	 	 	 	 	
July 31, 2010	 	598.4	 	1.5	%	
June 30, 2010	 	589.6	 	1.8	 	
May 31, 2010	 	579.3	 	5.0	 	
April 30, 2010	 	551.7	 	(2.8	)	
March 31, 2010	 	567.7	 	4.7	 	
February 28, 2010	 	542.2	 	(0.6	)	
January 31, 2010	 	545.5	 	1.1	 	
December 31, 2009	 	539.5	 	1.5	 	
November 30, 2009	 	531.5	 	(0.4	)	
October 31, 2009	 	533.6	 	(3.5	)	
September 30, 2009	 	552.8	 	3.5	 	
August 31, 2009	 	534.1	 	(1.0	)	
July 31, 2009	 	539.5	 	5.3	 	
June 30, 2009	 	512.4	 	(5.7	)	
May 31, 2009	 	543.6	 	(0.6	)	
April 30, 2009	 	546.8	 	6.7	 	
March 31, 2009	 	512.7	 	(4.8	)	
February 28, 2009	 	538.4	 	0.5	 	
January 31, 2009	 	535.5	 	2.6	 	

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.
Note:  Certain prior period seasonally adjusted information has been revised.