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 27, 2008	
 
BANK OF HAWAII CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware	 	1-6887	 	99-0148992	
(State of Incorporation)	 	(Commission	 	(IRS Employer	
 	 	File Number)	 	Identification No.)	
 	 	 	 	 	
130 Merchant Street, Honolulu, Hawaii	 	96813	
(Address of principal executive offices)	 	(Zip Code)	
 	 	 	
(Registrant’s telephone number,	 	 	
including area code)	 	(808) 694-8822	
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
¨  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 October 27, 2008, Bank of Hawaii Corporation announced its results of operations for the quarter ending September 30, 2008.  The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
 
Item 9.01.            Financial Statements and Exhibits
 
(d)         Exhibits
 
Exhibit No.	 	 	
 
99.1       October 27, 2008 Press Release

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

Date: October 27, 2008	 	BANK OF HAWAII CORPORATION	

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

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 Third Quarter 2008 Financial Results
 
·                  Diluted Earnings Per Share $0.99
·                  Net Income for the Quarter $47.4 Million
·                  Board of Directors Increases Dividend to $0.45 Per Share
·                  Board of Directors Increases Repurchase Authorization by $50 Million
 
FOR IMMEDIATE RELEASE
 
HONOLULU, HI (October 27, 2008) — Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.99 for the third quarter of 2008, an increase of $0.03 or 3.1 percent from diluted earnings per share of $0.96 in the same quarter last year.  Net income for the third quarter of 2008 was $47.4 million, down slightly from net income of $47.8 million in the third quarter of 2007.  Financial results for the third quarter of 2008 included an $8.9 million net credit related to the Company’s pending resolution of Sale In/Lease Out (“SILO”) leases with the Internal Revenue Service.  The Company also increased the allowance for loan and lease losses by $13.0 million during the quarter.
 
The return on average assets for the third quarter of 2008 was 1.82 percent, up from 1.79 percent during the same quarter last year.  The return on average equity for the third quarter of 2008 was 24.17 percent compared to 26.02 percent for the third quarter of 2007.
 
“Bank of Hawaii Corporation had another good financial performance during the third quarter of 2008 despite a challenging environment for banks,” said Allan R. Landon, Chairman and CEO.  “Asset quality remained solid and we strengthened our capital ratios and reserves during the quarter.  We are preparing for more challenging operating conditions as the Hawaii economy slows and Federal government programs begin to impact our market.”
 
For the nine months ended September 30, 2008, net income was $152.9 million, up $10.1 million or 7.0 percent compared to $142.8 million for the same period last year.  Diluted earnings per share were $3.17 for the nine-month period in 2008, up from $2.86 for the same period in 2007.  The year-to-date return on average assets was 1.95 percent, up from 1.82 percent for the same nine months in 2007.  The year-to-date return on average equity was 26.26 percent, down slightly from 26.43 percent for the same period in 2007 as the Company further strengthened its capital levels in 2008.
 
- more -
 
130 Merchant Street · PO Box 2900 · Honolulu HI 96846-6000 · Fax 808-537-8440 · Website www.boh.com

 
Financial Highlights
 
Net interest income, on a taxable equivalent basis, for the third quarter of 2008 was $103.8 million, up $5.0 million from net interest income of $98.8 million in the third quarter of 2007 and down $3.6 million from net interest income of $107.4 million in the second 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.  For the nine-month period ended September 30, 2008, net interest income on a taxable equivalent basis was $313.6 million compared to $296.3 million for the same period in 2007.  Analyses of the changes in net interest income are included in Tables 7a, 7b and 7c.
 
The net interest margin was 4.33 percent for the third quarter of 2008, a 30 basis point increase from 4.03 percent in the third quarter of 2007 and an 8 basis point decrease from 4.41 percent in the second quarter of 2008.  The decrease in the margin compared with the previous quarter was due to accounting for the proposed settlement of the SILO leases, which reduced the margin by 17 basis points.  For the nine months ended September 30, 2008, the net interest margin was 4.30 percent compared to 4.07 percent for the same nine months in 2007.  The increase in the net interest margin was primarily due to lower funding costs in 2008.
 
Results for the third quarter of 2008 included a provision for credit losses of $20.4 million compared with $4.1 million in the third quarter of 2007 and $7.2 million in the second quarter of 2008.  The provision for credit losses exceeded net charge-offs of $7.4 million by $13.0 million in the third quarter of 2008.  The provision for credit losses equaled net charge-offs in the third quarter of last year and exceeded net charge-offs by $2.5 million in the second quarter of 2008.
 
Noninterest income was $57.0 million for the third quarter of 2008, a decrease of $4.3 million compared to $61.2 million in the third quarter of 2007 and a decrease of $3.6 million compared to $60.5 million in the second quarter of 2008.  The decrease in noninterest income was largely due to accounting volatility in mortgage banking income, the timing of contingent insurance commission income, and lower investment management fees.
 
Noninterest expense was $86.8 million in the third quarter of 2008, up $5.3 million from noninterest expense of $81.5 million in the same quarter last year and up $2.9 million from $83.9 million in the previous quarter.  Noninterest expense in the third quarter of 2008 included an additional accrual of $2.0 million related to employee incentive awards.  An analysis of salary and benefit expenses is included in Table 8.
 
The efficiency ratio for the third quarter of 2008 was 54.05 percent compared to 50.97 percent in the third quarter last year.  For the nine months ended September 30, 2008, the efficiency ratio was 51.12 percent compared to 51.16 percent for the same period in 2007.
 
The 11.24 percent effective tax rate for the third quarter of 2008 includes a net credit of $12.9 million due to the previously mentioned IRS tax settlement.  The effective tax rate was 35.68 percent during the same quarter last year and 37.03 percent in the previous quarter.  For the nine months ended September 30, 2008, the effective tax rate was 27.37 percent compared to 35.75 percent for the same period in 2007.  Adjusted for the SILO tax settlement, the effective tax rate was 32.97 percent for the third quarter of 2008 and 32.89 percent for the nine-month period in 2008.
 
2

 
The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury.  Results are determined based on the Company’s internal financial management reporting process and organizational structure.  Selected financial information for the business segments is included in Tables 12a and 12b.
 
Asset Quality
 
The Company’s overall asset quality remained solid during the three-month period ended September 30, 2008 with low levels of non-performing assets and accruing loans and leases past due 90 days or more.  However, the Company increased the allowance for loan and lease losses by an additional $13.0 million during the quarter due to heightened risk in three specific loan exposures and to general risk from the weakening Hawaii and U.S. mainland economy.
 
Non-accrual loans and leases were $5.6 million at September 30, 2008, up from $4.2 million at September 30, 2007 and down from $6.5 million at June 30, 2008.  As a percentage of total loans and leases, non-accrual loans at September 30, 2008 of 0.09 percent remain near historic lows.
 
Total non-performing assets were $5.9 million at the end of the third quarter of 2008, up from $4.3 million at the end of the same quarter last year and down from $6.7 million at the end of the previous quarter.  The ratio of non-performing assets to total loans and foreclosed real estate at September 30, 2008 was 0.09 percent, up from 0.06 percent at September 30, 2007 and down from 0.10 percent at June 30, 2008.
 
Net charge-offs during the third quarter of 2008 were $7.4 million or 0.45 percent annualized of total average loans and leases.  Net charge-offs increased $3.3 million compared to $4.1 million, or 0.25 percent annualized of total average loans and leases, during the same quarter last year and were up $2.7 million compared to $4.7 million, or 0.29 percent annualized of total average loans and leases, in the previous quarter.  The increase compared to the previous quarter was largely due to higher charge-offs in the unsecured consumer installment portfolio.  Net charge-offs for the nine months ended September 30, 2008 were $17.5 million, or 0.36 percent annualized of total average loans and leases compared to $10.1 million, or 0.21 percent annualized of total average loans and leases for the same period last year.  Net charge-offs for the first nine months of 2007 included a partial recovery of $2.1 million on an aircraft lease charged off in 2005.
 
The allowance for loan and lease losses increased to $115.5 million at September 30, 2008, up from $91.0 million at September 30, 2007 and up from $102.5 million at June 30, 2008.  The ratio of the allowance for loan and lease losses to total loans was 1.77 percent at September 30, 2008, an increase from 1.38 percent at September 30, 2007 and from 1.57 percent at June 30, 2008.  The reserve for unfunded commitments at September 30, 2008 was $5.2 million, unchanged from September 30, 2007 and from June 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 $10.34 billion at September 30, 2008, down $215 million from $10.55 billion at September 30, 2007 and down $36 million from $10.37 billion at June 30, 2008.  The decrease in total assets compared with the prior quarters is largely due to a reduction in investment securities.
 
3

 
Total loans and leases were $6.54 billion at September 30, 2008, down $60 million from $6.60 billion at September 30, 2007 and up $21 million from $6.52 billion at June 30, 2008.  Average loans and leases were $6.51 billion during the third quarter of 2008, down $58 million from $6.57 billion during the third quarter last year and down $19 million from $6.53 billion during the previous quarter.
 
Total commercial loans were $2.41 billion at September 30, 2008, down $19 million from $2.43 billion at September 30, 2007 and up $34 million from $2.37 billion at June 30, 2008.  The decrease in commercial loans is largely due to the Company’s strategy to reduce construction lending exposure.  Construction loans were $153 million at September 30, 2008, down $101 million from $254 million at September 30, 2007 and down $15 million from $169 million at June 30, 2008.
 
Total consumer loans were $4.13 billion at September 30, 2008, down $42 million from $4.17 billion at September 30, 2007 and down $12 million from $4.14 billion at June 30, 2008.  The decrease in consumer loans compared with the previous quarter was largely due to a reduction in residential first mortgages, automobile lending, and unsecured installment loans.  The trends in the consumer portfolio are consistent with the slowing Hawaii economy and the Company’s disciplined approach to underwriting and credit.  Loan and lease portfolio balances are summarized in Table 9.
 
Total deposits were $7.66 billion at September 30, 2008, down $217 million from $7.88 billion at September 30, 2007 and down $246 million from $7.90 billion at June 30, 2008.  The decrease in total deposits was largely due to a reduction in commercial escrow accounts related to construction projects nearing completion and lower public deposits due to the timing of bond payments.  Average total deposits were $7.77 billion during the third quarter of 2008, down $243 million from $8.02 billion during the third quarter last year and down $186 million from $7.96 billion during the previous quarter.
 
During the third quarter of 2008, the Company repurchased 332.2 thousand shares of common stock at a total cost of $16.2 million under its share repurchase program.  The average cost was $48.74 per share repurchased.  From the beginning of the share repurchase program in July 2001 through September 30, 2008, the Company has repurchased 45.6 million shares and returned over $1.6 billion to shareholders at an average cost of $35.44 per share.  On October 24, 2008 the Company’s Board of Directors increased the authorization under the share repurchase program by an additional $50 million.  This new authorization, combined with the previously announced authorizations of $1.65 billion, brings the total repurchase authority to $1.7 billion.  Remaining buyback authority under the share repurchase program was $85.4 million at October 24, 2008.
 
At September 30, 2008, the Tier 1 leverage ratio was 7.27 percent, up from 6.92 percent at September 30, 2007 and up from 7.01 percent at June 30, 2008.
 
The Company’s Board of Directors declared a quarterly cash dividend of $0.45 per share on the Company’s outstanding shares, up from $0.44 during the previous three quarters.  The dividend will be payable on December 12, 2008 to shareholders of record at the close of business on November 28, 2008.
 
4

 
The Federal government and organizations have announced a number of programs to relieve distress in the financial markets, including the Emergency Economic Stabilization Act of 2008.  The Company is evaluating the programs to determine its level of participation, if any.
 
Hawaii Economy
 
During the third quarter of 2008, Hawaii’s economy continued to slow.  Unemployment increased to 4.5 percent in September 2008 compared with 2.6 percent at the end of 2007.  Visitor arrivals, which were up in the first quarter of 2008 and down slightly through the first half of 2008, decreased 17.3 percent in August compared with 2007.  Oahu single-family median home prices were down slightly compared with home prices last year, and decreased by larger proportions on the neighbor islands.  Reductions in residential building during 2008 continue to be partially offset by military construction.  Nonresidential construction, which was up significantly in the first half of 2008, declined 30.4 percent in August compared to prior year levels.  Inflation in Hawaii was 4.9 percent in the first half of 2008, down slightly from the first half of 2007.  Hawaii real personal income growth remained positive during the first half of 2008, up 0.3 percent from 2007.
 
Conference Call Information
 
The Company will review its third quarter 2008 financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time).  The conference call will be accessible via teleconference and via the Investor Relations link of the Company’s web site, www.boh.com.  The conference call number for participants in the United States is 800-901-5217.  International participants should call 617-786-2964.  No pass code is required.  A replay will be available for one week beginning Monday, October 27, 2008 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the pass code number 74583826 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, filed with the U.S. Securities and Exchange Commission.  We have not committed to update forward-looking statements to reflect later events or circumstances.
 
Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers and governments in Hawaii, American Samoa and the West Pacific.  The Company’s principal subsidiary, Bank of Hawaii, was founded in 1897 and is the largest independent financial institution in Hawaii.  For more information about Bank of Hawaii Corporation, see the Company’s web site, www.boh.com.
 
 # # #
 
5

 
Bank of Hawaii Corporation and Subsidiaries
Financial Highlights (Unaudited)	 	 	 	 	 	 	 	Table 1	
 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands, except per share amounts)	 	2008	 	2008	 	2007	 	2008	 	2007	 	
For the Period:	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	103,575	 	$	107,168	 	$	98,556	 	$	312,923	 	$	295,571	 	
Provision for Credit Losses	 	20,358	 	7,172	 	4,070	 	41,957	 	10,064	 	
Total Noninterest Income	 	56,986	 	60,539	 	61,242	 	203,650	 	180,230	 	
Total Noninterest Expense	 	86,790	 	83,862	 	81,450	 	264,084	 	243,405	 	
Net Income	 	47,409	 	48,282	 	47,779	 	152,906	 	142,843	 	
Basic Earnings Per Share	 	1.00	 	1.01	 	0.98	 	3.20	 	2.90	 	
Diluted Earnings Per Share	 	0.99	 	1.00	 	0.96	 	3.17	 	2.86	 	
Dividends Declared Per Share	 	0.44	 	0.44	 	0.41	 	1.32	 	1.23	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Net Income to Average Total Assets	 	1.82	%	1.85	%	1.79	%	1.95	%	1.82	%	
Net Income to Average Shareholders’ Equity	 	24.17	 	24.82	 	26.02	 	26.26	 	26.43	 	
Efficiency Ratio1	 	54.05	 	50.01	 	50.97	 	51.12	 	51.16	 	
Operating Leverage 2	 	(12.02	)	(11.62	)	1.65	 	8.65	 	2.97	 	
Net Interest Margin3	 	4.33	 	4.41	 	4.03	 	4.30	 	4.07	 	
Dividend Payout Ratio4	 	44.00	 	43.56	 	41.84	 	41.25	 	42.41	 	
Effective Tax Rate	 	11.24	 	37.03	 	35.68	 	27.37	 	35.75	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases	 	$	6,512,453	 	$	6,531,587	 	$	6,570,261	 	$	6,543,871	 	$	6,554,979	 	
Average Assets	 	10,339,490	 	10,504,421	 	10,576,565	 	10,495,367	 	10,480,803	 	
Average Deposits	 	7,772,535	 	7,958,171	 	8,015,594	 	7,893,972	 	7,916,061	 	
Average Shareholders’ Equity	 	780,334	 	782,429	 	728,372	 	777,650	 	722,522	 	
Average Shareholders’ Equity to Average Assets	 	7.55	%	7.45	%	6.89	%	7.41	%	6.89	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Market Price Per Share of Common Stock:	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Closing	 	$	53.45	 	$	47.80	 	$	52.85	 	$	53.45	 	$	52.85	 	
High	 	70.00	 	57.37	 	55.84	 	70.00	 	55.84	 	
Low	 	37.46	 	46.62	 	46.05	 	37.46	 	46.05	 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	September 30,	 	June 30,	 	December 31,	 	September 30,	 	
 	 	 	 	2008 	 	2008 	 	2007 	 	2007 	 	
As of Period End:	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	 	 	$	6,539,458	 	$	6,518,128	 	$	6,580,861	 	$	6,599,915	 	
Total Assets	 	 	 	10,335,047	 	10,371,149	 	10,472,942	 	10,549,595	 	
Total Deposits	 	 	 	7,658,484	 	7,903,990	 	7,942,372	 	7,875,166	 	
Long-Term Debt	 	 	 	204,616	 	205,351	 	235,371	 	235,350	 	
Total Shareholders’ Equity	 	 	 	780,020	 	767,558	 	750,255	 	731,697	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Non-Performing Assets	 	 	 	$	5,927	 	$	6,680	 	$	5,286	 	$	4,260	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Allowance to Loans and Leases Outstanding	 	 	 	1.77	%	1.57	%	1.38	%	1.38	%	
Leverage Ratio5	 	 	 	7.27	 	7.01	 	7.02	 	6.92	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Book Value Per Common Share	 	 	 	$	16.35	 	$	16.01	 	$	15.44	 	$	14.91	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Full-Time Equivalent Employees	 	 	 	2,573	 	2,534	 	2,594	 	2,572	 	
Branches and Offices	 	 	 	84	 	84	 	83	 	83	 	

1	Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).	
2	Operating leverage is defined as the percentage change in income before the provision for credit losses and the provision for income taxes. Measures are presented on a linked quarter basis.	
3	Net interest margin is defined as net interest income, on a taxable equivalent basis, as a percentage of average earning assets.	
4	Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.	
5	Leverage ratio as of June 30, 2008, December 31, 2007, and September 30, 2007 was corrected from 7.04%, 7.04%, and 6.95%, respectively.	

 
Bank of Hawaii Corporation and Subsidiaries
Net Significant Income (Expense) Items (Unaudited)	 	Table 2	
 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	September 30,	 	
(dollars in thousands)	 	2008	 	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	 	
Increase in Allowance for Loan and Lease Losses	 	(13,000	)	(22,000	)	-	 	
Cash for Stock Grants	 	-	 	(4,640	)	-	 	
Employee Incentive Awards	 	(2,000	)	(6,386	)	-	 	
Legal Contingencies	 	-	 	(3,016	)	-	 	
Bank of Hawaii Charitable Foundation and Other Contributions	 	-	 	(2,250	)	-	 	
Call Premium on Capital Securities	 	-	 	(991	)	-	 	
Separation Expense	 	-	 	(615	)	-	 	
Reversal of Visa Legal Costs	 	-	 	5,649	 	-	 	
Significant Income (Expense) Items Before the Provision (Benefit) for Income Taxes	 	(18,981	)	(12,905	)	3,373	 	
Benefit for Income Taxes Related to SILO/LILO Transactions	 	(12,920	)	(12,920	)	(377	)	
Provision (Benefit) for Income Taxes	 	(5,250	)	(8,631	)	827	 	
Net Significant Income (Expense) Items	 	$	(811	)	$	8,646	 	$	2,923	 	

 
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)	Table 3	
 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands, except per share amounts)	 	2008	 	2008	 	2007	 	2008	 	2007	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	92,744	 	$	97,959	 	$	112,787	 	$	295,116	 	$	335,111	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	1,174	 	1,209	 	1,114	 	3,543	 	4,089	 	
Available-for-Sale	 	35,152	 	35,321	 	33,486	 	104,724	 	96,010	 	
Held-to-Maturity	 	2,870	 	3,033	 	3,616	 	9,142	 	11,495	 	
Deposits	 	33	 	204	 	1,086	 	432	 	1,240	 	
Funds Sold	 	141	 	420	 	1,103	 	1,553	 	2,694	 	
Other	 	490	 	489	 	364	 	1,405	 	1,061	 	
Total Interest Income	 	132,604	 	138,635	 	153,556	 	415,915	 	451,700	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	17,736	 	20,238	 	37,613	 	65,439	 	104,689	 	
Securities Sold Under Agreements to Repurchase	 	7,675	 	7,488	 	11,726	 	25,780	 	35,277	 	
Funds Purchased	 	507	 	270	 	1,654	 	1,410	 	4,029	 	
Short-Term Borrowings	 	13	 	12	 	87	 	59	 	265	 	
Long-Term Debt	 	3,098	 	3,459	 	3,920	 	10,304	 	11,869	 	
Total Interest Expense	 	29,029	 	31,467	 	55,000	 	102,992	 	156,129	 	
Net Interest Income	 	103,575	 	107,168	 	98,556	 	312,923	 	295,571	 	
Provision for Credit Losses	 	20,358	 	7,172	 	4,070	 	41,957	 	10,064	 	
Net Interest Income After Provision for Credit Losses	 	83,217	 	99,996	 	94,486	 	270,966	 	285,507	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	14,193	 	15,460	 	15,146	 	44,739	 	47,114	 	
Mortgage Banking	 	621	 	2,738	 	3,848	 	7,656	 	9,698	 	
Service Charges on Deposit Accounts	 	13,045	 	12,411	 	11,919	 	37,539	 	33,958	 	
Fees, Exchange, and Other Service Charges	 	16,991	 	17,176	 	16,465	 	50,268	 	49,082	 	
Investment Securities Gains, Net	 	159	 	157	 	789	 	446	 	1,380	 	
Insurance	 	5,902	 	5,590	 	7,446	 	18,622	 	18,548	 	
Other	 	6,075	 	7,007	 	5,629	 	44,380	 	20,450	 	
Total Noninterest Income	 	56,986	 	60,539	 	61,242	 	203,650	 	180,230	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	46,764	 	45,984	 	44,944	 	148,221	 	134,937	 	
Net Occupancy	 	11,795	 	11,343	 	10,267	 	33,581	 	29,773	 	
Net Equipment	 	4,775	 	4,474	 	4,871	 	13,570	 	14,529	 	
Professional Fees	 	3,270	 	2,588	 	2,369	 	8,471	 	7,511	 	
Other	 	20,186	 	19,473	 	18,999	 	60,241	 	56,655	 	
Total Noninterest Expense	 	86,790	 	83,862	 	81,450	 	264,084	 	243,405	 	
Income Before Provision for Income Taxes	 	53,413	 	76,673	 	74,278	 	210,532	 	222,332	 	
Provision for Income Taxes	 	6,004	 	28,391	 	26,499	 	57,626	 	79,489	 	
Net Income	 	$	47,409	 	$	48,282	 	$	47,779	 	$	152,906	 	$	142,843	 	
Basic Earnings Per Share	 	$	1.00	 	$	1.01	 	$	0.98	 	$	3.20	 	$	2.90	 	
Diluted Earnings Per Share	 	$	0.99	 	$	1.00	 	$	0.96	 	$	3.17	 	$	2.86	 	
Dividends Declared Per Share	 	$	0.44	 	$	0.44	 	$	0.41	 	$	1.32	 	$	1.23	 	
Basic Weighted Average Shares	 	47,518,078	 	47,733,278	 	48,913,293	 	47,738,245	 	49,204,295	 	
Diluted Weighted Average Shares	 	48,057,965	 	48,300,049	 	49,663,049	 	48,295,901	 	50,001,594	 	

 
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition (Unaudited)	 	Table 4	
 	 	September 30,	 	June 30,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2008	 	2008	 	2007	 	2007	 	
Assets	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	13,845	 	$	6,056	 	$	4,870	 	$	35,471	 	
Funds Sold	 	-    	 	-    	 	15,000	 	-    	 	
Investment Securities	 	 	 	 	 	 	 	 	 	
Trading	 	90,993	 	94,347	 	67,286	 	92,831	 	
Available-for-Sale	 	2,572,111	 	2,646,506	 	2,563,190	 	2,591,982	 	
Held-to-Maturity (Fair value of $245,720; $255,905; $287,644; and $299,191)	 	249,083	 	260,592	 	292,577	 	307,653	 	
Loans Held for Sale	 	14,903	 	11,183	 	12,341	 	8,016	 	
Loans and Leases	 	6,539,458	 	6,518,128	 	6,580,861	 	6,599,915	 	
Allowance for Loan and Lease Losses	 	(115,498	)	(102,498	)	(90,998	)	(90,998	)	
Net Loans and Leases	 	6,423,960	 	6,415,630	 	6,489,863	 	6,508,917	 	
Total Earning Assets	 	9,364,895	 	9,434,314	 	9,445,127	 	9,544,870	 	
Cash and Noninterest-Bearing Deposits	 	285,762	 	280,635	 	368,402	 	344,267	 	
Premises and Equipment	 	118,333	 	117,323	 	117,177	 	120,318	 	
Customers’ Acceptances	 	1,250	 	1,856	 	1,112	 	1,967	 	
Accrued Interest Receivable	 	41,061	 	42,295	 	45,261	 	52,652	 	
Foreclosed Real Estate	 	293	 	229	 	184	 	105	 	
Mortgage Servicing Rights	 	 	 	 	 	 	 	 	 	
Measured at Fair Value	 	27,057	 	30,272	 	27,588	 	28,407	 	
Amortized	 	650	 	-    	 	-    	 	-    	 	
Goodwill	 	34,959	 	34,959	 	34,959	 	34,959	 	
Other Assets	 	460,787	 	429,266	 	433,132	 	422,050	 	
Total Assets	 	$	10,335,047	 	$	10,371,149	 	$	10,472,942	 	$	10,549,595	 	
 	 	 	 	 	 	 	 	 	 	
Liabilities	 	 	 	 	 	 	 	 	 	
Deposits	 	 	 	 	 	 	 	 	 	
Noninterest-Bearing Demand	 	$	1,592,251	 	$	1,876,782	 	$	1,935,639	 	$	1,894,933	 	
Interest-Bearing Demand	 	1,750,297	 	1,666,726	 	1,634,675	 	1,530,982	 	
Savings	 	2,738,684	 	2,781,082	 	2,630,471	 	2,711,169	 	
Time	 	1,577,252	 	1,579,400	 	1,741,587	 	1,738,082	 	
Total Deposits	 	7,658,484	 	7,903,990	 	7,942,372	 	7,875,166	 	
Funds Purchased	 	189,700	 	69,400	 	75,400	 	191,900	 	
Short-Term Borrowings	 	10,621	 	10,180	 	10,427	 	10,749	 	
Securities Sold Under Agreements to Repurchase	 	1,109,431	 	1,028,518	 	1,029,340	 	1,087,511	 	
Long-Term Debt (includes $120,598 and $121,326 carried at fair value as of September 30, 2008 and June 30, 2008, respectively)	 	204,616	 	205,351	 	235,371	 	235,350	 	
Banker’s Acceptances	 	1,250	 	1,856	 	1,112	 	1,967	 	
Retirement Benefits Payable	 	22,438	 	29,478	 	29,984	 	41,125	 	
Accrued Interest Payable	 	12,702	 	13,588	 	20,476	 	18,526	 	
Taxes Payable and Deferred Taxes	 	240,795	 	250,125	 	278,218	 	271,089	 	
Other Liabilities	 	104,990	 	91,105	 	99,987	 	84,515	 	
Total Liabilities	 	9,555,027	 	9,603,591	 	9,722,687	 	9,817,898	 	
Shareholders’ Equity	 	 	 	 	 	 	 	 	 	
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: September 2008 - 57,022,797 / 47,707,629; June 2008 - 57,016,182 / 47,941,409; December 2007 - 56,995,447 / 48,589,645; and September 2007 - 57,005,602 / 49,068,275)	 	568	 	568	 	567	 	567	 	
Capital Surplus	 	491,419	 	489,335	 	484,790	 	482,586	 	
Accumulated Other Comprehensive Loss	 	(18,643	)	(15,813	)	(5,091	)	(28,359	)	
Retained Earnings	 	770,373	 	745,244	 	688,638	 	671,451	 	
Treasury Stock, at Cost (Shares: September 2008 - 9,315,168; June 2008 - 9,074,773; December 2007 - 8,405,802; and September 2007 - 7,937,327)	 	(463,697	)	(451,776	)	(418,649	)	(394,548	)	
Total Shareholders’ Equity	 	780,020	 	767,558	 	750,255	 	731,697	 	
Total Liabilities and Shareholders’ Equity	 	$	10,335,047	 	$	10,371,149	 	$	10,472,942	 	$	10,549,595	 	

 
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	 	152,906	 	-	 	-	 	-	 	152,906	 	-	 	$	152,906	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	 	(13,699	)	-	 	-	 	(13,699	)	-	 	-	 	(13,699	)	
Amortization of Net Loss for Pension Plans and Postretirement Benefit Plan	 	147	 	-	 	-	 	147	 	-	 	-	 	147	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	139,354	 	
Share-Based Compensation	 	4,480	 	-	 	4,480	 	-	 	-	 	-	 	 	 	
Net Tax Benefits related to Share-Based Compensation	 	1,728	 	-	 	1,728	 	-	 	-	 	-	 	 	 	
Common Stock Issued under Purchase and Equity Compensation Plans (378,382 shares)	 	12,000	 	1	 	421	 	-	 	(5,075	)	16,653	 	 	 	
Common Stock Repurchased (1,260,398 shares)	 	(61,701	)	-	 	-	 	-	 	-	 	(61,701	)	 	 	
Cash Dividends Paid	 	(63,360	)	-	 	-	 	-	 	(63,360	)	-	 	 	 	
Balance as of September 30, 2008	 	$	780,020	 	$	568	 	$	491,419	 	$	(18,643	)	$	770,373	 	$	(463,697	)	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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	 	142,843	 	-	 	-	 	-	 	142,843	 	-	 	$	142,843	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	 	4,809	 	-	 	-	 	4,809	 	-	 	-	 	4,809	 	
Amortization of Net Loss for Pension Plans and Postretirement Benefit Plan	 	637	 	-	 	-	 	637	 	-	 	-	 	637	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	148,289	 	
Share-Based Compensation	 	4,464	 	-	 	4,464	 	-	 	-	 	-	 	 	 	
Net Tax Benefits related to Share-Based Compensation	 	2,624	 	-	 	2,624	 	-	 	-	 	-	 	 	 	
Common Stock Issued under Purchase and Equity Compensation Plans (628,252 shares)	 	16,321	 	1	 	320	 	-	 	(6,611	)	22,611	 	 	 	
Common Stock Repurchased (1,335,305 shares)	 	(69,259	)	-	 	-	 	-	 	-    	 	(69,259	)	 	 	
Cash Dividends Paid	 	(60,935	)	-	 	-	 	-	 	(60,935	)	-	 	 	 	
Balance as of September 30, 2007	 	$	731,697	 	$	567	 	$	482,586	 	$	(28,359	)	$	671,451	 	$	(394,548	)	 	 	

 
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable Equivalent Basis (Unaudited)	 	Table 6a	
 
 	 	Three Months Ended
September 30, 2008	 	Three Months Ended
June 30, 2008	 	Three Months Ended
September 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	 	$	6.4	 	$	-   	 	2.06	%	$	33.0	 	$	0.2	 	2.45	%	$	79.8	 	$	1.1	 	5.35	%	
Funds Sold	 	28.4	 	0.1	 	1.96	 	81.9	 	0.4	 	2.03	 	86.2	 	1.1	 	5.01	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	92.6	 	1.2	 	5.07	 	97.6	 	1.2	 	4.96	 	111.3	 	1.1	 	4.00	 	
Available-for-Sale	 	2,601.2	 	35.4	 	5.44	 	2,649.9	 	35.6	 	5.37	 	2,556.7	 	33.7	 	5.28	 	
Held-to-Maturity	 	255.4	 	2.9	 	4.50	 	269.6	 	3.1	 	4.50	 	318.0	 	3.6	 	4.55	 	
Loans Held for Sale	 	6.6	 	0.1	 	6.34	 	9.3	 	0.1	 	5.78	 	7.3	 	0.1	 	6.78	 	
Loans and Leases2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	1,049.7	 	13.8	 	5.23	 	1,060.7	 	14.3	 	5.42	 	1,048.9	 	19.7	 	7.45	 	
Commercial Mortgage	 	695.3	 	10.5	 	6.04	 	663.0	 	10.1	 	6.15	 	627.8	 	10.8	 	6.82	 	
Construction	 	161.4	 	2.3	 	5.67	 	177.3	 	2.5	 	5.76	 	262.2	 	5.3	 	8.00	 	
Commercial Lease Financing	 	472.9	 	0.2	 	0.15	 	470.6	 	4.1	 	3.50	 	479.4	 	3.6	 	2.98	 	
Residential Mortgage	 	2,500.0	 	37.8	 	6.04	 	2,509.1	 	38.2	 	6.09	 	2,502.2	 	38.5	 	6.15	 	
Home Equity	 	975.3	 	14.2	 	5.79	 	968.7	 	14.1	 	5.86	 	946.2	 	18.3	 	7.67	 	
Automobile	 	403.6	 	8.2	 	8.09	 	423.1	 	8.6	 	8.16	 	433.0	 	9.0	 	8.23	 	
Other3	 	254.3	 	5.6	 	8.80	 	259.1	 	5.9	 	9.11	 	270.6	 	7.5	 	11.05	 	
Total Loans and Leases	 	6,512.5	 	92.6	 	5.67	 	6,531.6	 	97.8	 	6.01	 	6,570.3	 	112.7	 	6.82	 	
Other	 	79.6	 	0.5	 	2.46	 	79.6	 	0.5	 	2.46	 	79.4	 	0.4	 	1.83	 	
Total Earning Assets4	 	9,582.7	 	132.8	 	5.53	 	9,752.5	 	138.9	 	5.71	 	9,809.0	 	153.8	 	6.25	 	
Cash and Noninterest-Bearing Deposits	 	274.3	 	 	 	 	 	272.9	 	 	 	 	 	285.3	 	 	 	 	 	
Other Assets	 	482.5	 	 	 	 	 	479.0	 	 	 	 	 	482.3	 	 	 	 	 	
Total Assets	 	$	10,339.5	 	 	 	 	 	$	10,504.4	 	 	 	 	 	$	10,576.6	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,827.9	 	1.5	 	0.32	 	$	1,617.0	 	1.2	 	0.29	 	$	1,557.7	 	4.0	 	1.01	 	
Savings	 	2,755.4	 	6.3	 	0.91	 	2,805.5	 	6.5	 	0.94	 	2,837.5	 	15.9	 	2.23	 	
Time	 	1,594.8	 	9.9	 	2.48	 	1,646.5	 	12.5	 	3.07	 	1,742.0	 	17.7	 	4.03	 	
Total Interest-Bearing Deposits	 	6,178.1	 	17.7	 	1.14	 	6,069.0	 	20.2	 	1.34	 	6,137.2	 	37.6	 	2.43	 	
Short-Term Borrowings	 	116.7	 	0.5	 	1.74	 	61.2	 	0.3	 	1.82	 	138.8	 	1.8	 	4.91	 	
Securities Sold Under Agreements to Repurchase	 	1,077.4	 	7.7	 	2.80	 	1,060.2	 	7.5	 	2.81	 	1,016.5	 	11.7	 	4.54	 	
Long-Term Debt	 	205.1	 	3.1	 	6.04	 	224.3	 	3.5	 	6.18	 	251.9	 	3.9	 	6.22	 	
Total Interest-Bearing Liabilities	 	7,577.3	 	29.0	 	1.52	 	7,414.7	 	31.5	 	1.70	 	7,544.4	 	55.0	 	2.89	 	
Net Interest Income	 	 	 	$	103.8	 	 	 	 	 	$	107.4	 	 	 	 	 	$	98.8	 	 	 	
Interest Rate Spread	 	 	 	 	 	4.01	%	 	 	 	 	4.01	%	 	 	 	 	3.36	%	
Net Interest Margin	 	 	 	 	 	4.33	%	 	 	 	 	4.41	%	 	 	 	 	4.03	%	
Noninterest-Bearing Demand Deposits	 	1,594.4	 	 	 	 	 	1,889.2	 	 	 	 	 	1,878.4	 	 	 	 	 	
Other Liabilities	 	387.5	 	 	 	 	 	418.1	 	 	 	 	 	425.4	 	 	 	 	 	
Shareholders’ Equity	 	780.3	 	 	 	 	 	782.4	 	 	 	 	 	728.4	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	10,339.5	 	 	 	 	 	$	10,504.4	 	 	 	 	 	$	10,576.6	 	 	 	 	 	
 
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, $239,000, and $237,000 for the three months ended September 30, 2008, June 30, 2008, and September 30, 2007, respectively.	

 
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable Equivalent Basis (Unaudited)	 	Table 6b	
 
 	 	Nine Months Ended
September 30, 2008	 	Nine Months Ended
September 30, 2007  1	 	
 	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	
(dollars in millions)	 	Balance	 	Expense	 	Rate 	 	Balance	 	Expense	 	Rate 	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	22.2	 	$	0.4	 	2.56	%	$	31.1	 	$	1.2	 	5.29	%	
Funds Sold	 	82.6	 	1.6	 	2.47	 	69.3	 	2.7	 	5.12	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	95.3	 	3.5	 	4.96	 	136.6	 	4.1	 	3.99	 	
Available-for-Sale	 	2,627.5	 	105.5	 	5.35	 	2,499.3	 	96.7	 	5.16	 	
Held-to-Maturity	 	270.1	 	9.1	 	4.51	 	339.3	 	11.5	 	4.52	 	
Loans Held for Sale	 	8.8	 	0.4	 	5.79	 	9.4	 	0.5	 	6.41	 	
Loans and Leases2	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	1,058.5	 	44.6	 	5.64	 	1,059.3	 	59.0	 	7.45	 	
Commercial Mortgage	 	669.2	 	31.1	 	6.21	 	621.5	 	31.7	 	6.82	 	
Construction	 	179.4	 	8.2	 	6.09	 	253.9	 	15.1	 	7.97	 	
Commercial Lease Financing	 	473.8	 	8.3	 	2.33	 	467.7	 	11.0	 	3.15	 	
Residential Mortgage	 	2,509.5	 	114.5	 	6.09	 	2,499.4	 	114.9	 	6.13	 	
Home Equity	 	971.6	 	44.3	 	6.09	 	943.3	 	53.9	 	7.64	 	
Automobile	 	421.7	 	25.7	 	8.14	 	427.9	 	26.1	 	8.16	 	
Other3	 	260.2	 	18.0	 	9.22	 	282.0	 	22.9	 	10.85	 	
Total Loans and Leases	 	6,543.9	 	294.7	 	6.01	 	6,555.0	 	334.6	 	6.82	 	
Other	 	79.6	 	1.4	 	2.35	 	79.4	 	1.1	 	1.78	 	
Total Earning Assets4	 	9,730.0	 	416.6	 	5.71	 	9,719.4	 	452.4	 	6.21	 	
Cash and Noninterest-Bearing Deposits	 	280.4	 	 	 	 	 	290.3	 	 	 	 	 	
Other Assets	 	485.0	 	 	 	 	 	471.1	 	 	 	 	 	
Total Assets	 	$	10,495.4	 	 	 	 	 	$	10,480.8	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,686.9	 	4.9	 	0.39	 	$	1,580.2	 	12.3	 	1.04	 	
Savings	 	2,750.9	 	22.1	 	1.07	 	2,702.5	 	41.1	 	2.03	 	
Time	 	1,662.6	 	38.4	 	3.09	 	1,727.3	 	51.3	 	3.97	 	
Total Interest-Bearing Deposits	 	6,100.4	 	65.4	 	1.43	 	6,010.0	 	104.7	 	2.33	 	
Short-Term Borrowings	 	86.0	 	1.5	 	2.25	 	112.0	 	4.3	 	5.06	 	
Securities Sold Under Agreements to Repurchase	 	1,100.5	 	25.8	 	3.10	 	1,042.1	 	35.2	 	4.49	 	
Long-Term Debt	 	223.0	 	10.3	 	6.16	 	257.5	 	11.9	 	6.15	 	
Total Interest-Bearing Liabilities	 	7,509.9	 	103.0	 	1.83	 	7,421.6	 	156.1	 	2.81	 	
Net Interest Income	 	 	 	$	313.6	 	 	 	 	 	$	296.3	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.88	%	 	 	 	 	3.40	%	
Net Interest Margin	 	 	 	 	 	4.30	%	 	 	 	 	4.07	%	
Noninterest-Bearing Demand Deposits	 	1,793.5	 	 	 	 	 	1,906.0	 	 	 	 	 	
Other Liabilities	 	414.3	 	 	 	 	 	430.7	 	 	 	 	 	
Shareholders’ Equity	 	777.7	 	 	 	 	 	722.5	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	10,495.4	 	 	 	 	 	$	10,480.8	 	 	 	 	 	
 
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 $711,000 and $686,000 for the nine months ended September 30, 2008 and 2007, respectively.	

 
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable Equivalent Basis (Unaudited)	 	Table 7a	
 
 	 	Three Months Ended September 30, 2008	 	
 	 	Compared to June 30, 2008	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Time 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	(0.2	)	$	-	 	$	-	 	$	(0.2	)	
Funds Sold	 	(0.3	)	-	 	-	 	(0.3	)	
Investment Securities	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	(0.7	)	0.5	 	-	 	(0.2	)	
Held-to-Maturity	 	(0.2	)	-	 	-	 	(0.2	)	
Loans and Leases	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(0.2	)	(0.5	)	0.2	 	(0.5	)	
Commercial Mortgage	 	0.5	 	(0.2	)	0.1	 	0.4	 	
Construction	 	(0.2	)	-	 	-	 	(0.2	)	
Commercial Lease Financing	 	-	 	(4.0	)	0.1	 	(3.9	)	
Residential Mortgage	 	(0.1	)	(0.3	)	-	 	(0.4	)	
Home Equity	 	0.1	 	(0.2	)	0.2	 	0.1	 	
Automobile	 	(0.4	)	(0.1	)	0.1	 	(0.4	)	
Other2	 	(0.1	)	(0.2	)	-	 	(0.3	)	
Total Loans and Leases	 	(0.4	)	(5.5	)	0.7	 	(5.2	)	
Total Change in Interest Income	 	(1.8	)	(5.0	)	0.7	 	(6.1	)	
 	 	 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	
Demand	 	0.2	 	0.1	 	-	 	0.3	 	
Savings	 	(0.1	)	(0.2	)	0.1	 	(0.2	)	
Time	 	(0.4	)	(2.3	)	0.1	 	(2.6	)	
Total Interest-Bearing Deposits	 	(0.3	)	(2.4	)	0.2	 	(2.5	)	
Short-Term Borrowings	 	0.2	 	-	 	-	 	0.2	 	
Securities Sold Under Agreements to Repurchase	 	0.1	 	-	 	0.1	 	0.2	 	
Long-Term Debt	 	(0.3	)	(0.1	)	-	 	(0.4	)	
Total Change in Interest Expense	 	(0.3	)	(2.5	)	0.3	 	(2.5	)	
 	 	 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	(1.5	)	$	(2.5	)	$	0.4	 	$	(3.6	)	
 
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 (Unaudited)	 	Table  7b	
 	 	Three Months Ended September 30, 2008
Compared to September 30, 2007	 	
(dollars in millions)	 	Volume1	 	Rate1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	(0.7	)	$	(0.4	)	$	(1.1	)	
Funds Sold	 	(0.5	)	(0.5	)	(1.0	)	
Investment Securities	 	 	 	 	 	 	 	
Trading	 	(0.2	)	0.3	 	0.1	 	
Available-for-Sale	 	0.6	 	1.1	 	1.7	 	
Held-to-Maturity	 	(0.7	)	-	 	(0.7	)	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	-	 	(5.9	)	(5.9	)	
Commercial Mortgage	 	1.0	 	(1.3	)	(0.3	)	
Construction	 	(1.7	)	(1.3	)	(3.0	)	
Commercial Lease Financing	 	-	 	(3.4	)	(3.4	)	
Residential Mortgage	 	-	 	(0.7	)	(0.7	)	
Home Equity	 	0.5	 	(4.6	)	(4.1	)	
Automobile	 	(0.6	)	(0.2	)	(0.8	)	
Other2	 	(0.4	)	(1.5	)	(1.9	)	
Total Loans and Leases	 	(1.2	)	(18.9	)	(20.1	)	
Other	 	-	 	0.1	 	0.1	 	
Total Change in Interest Income	 	(2.7	)	(18.3	)	(21.0	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	0.6	 	(3.1	)	(2.5	)	
Savings	 	(0.4	)	(9.2	)	(9.6	)	
Time	 	(1.5	)	(6.3	)	(7.8	)	
Total Interest-Bearing Deposits	 	(1.3	)	(18.6	)	(19.9	)	
Short-Term Borrowings	 	(0.3	)	(1.0	)	(1.3	)	
Securities Sold Under Agreements to Repurchase	 	0.7	 	(4.7	)	(4.0	)	
Long-Term Debt	 	(0.7	)	(0.1	)	(0.8	)	
Total Change in Interest Expense	 	(1.6	)	(24.4	)	(26.0	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	(1.1	)	$	6.1	 	$	5.0	 	
 
1         The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume and rate for that category.
2         Comprised of other consumer revolving credit, installment, and consumer lease financing.

 
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable Equivalent Basis (Unaudited)	 	Table  7c	
 	 	Nine Months Ended September 30, 2008	
 	 	Compared to September 30, 2007	
(dollars in millions)	 	Volume1	 	Rate1	 	Time1	 	Total	
Change in Interest Income:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	(0.3	)	$	(0.5	)	$	-	 	$	(0.8	)	
Funds Sold	 	0.5	 	(1.6	)	-	 	(1.1	)	
Investment Securities	 	 	 	 	 	 	 	 	 	
Trading	 	(1.4	)	0.8	 	-	 	(0.6	)	
Available-for-Sale	 	5.1	 	3.7	 	-	 	8.8	 	
Held-to-Maturity	 	(2.4	)	-	 	-	 	(2.4	)	
Loans Held for Sale	 	-	 	(0.1	)	-	 	(0.1	)	
Loans and Leases	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(0.1	)	(14.5	)	0.2	 	(14.4	)	
Commercial Mortgage	 	2.3	 	(3.0	)	0.1	 	(0.6	)	
Construction	 	(3.9	)	(3.1	)	0.1	 	(6.9	)	
Commercial Lease Financing	 	0.1	 	(2.8	)	-	 	(2.7	)	
Residential Mortgage	 	0.4	 	(0.8	)	-	 	(0.4	)	
Home Equity	 	1.6	 	(11.4	)	0.2	 	(9.6	)	
Automobile	 	(0.4	)	(0.1	)	0.1	 	(0.4	)	
Other2	 	(1.7	)	(3.3	)	0.1	 	(4.9	)	
Total Loans and Leases	 	(1.7	)	(39.0	)	0.8	 	(39.9	)	
Other	 	-	 	0.3	 	-	 	0.3	 	
Total Change in Interest Income	 	(0.2	)	(36.4	)	0.8	 	(35.8	)	
 	 	 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	
Demand	 	0.8	 	(8.2	)	-	 	(7.4	)	
Savings	 	0.7	 	(19.9	)	0.2	 	(19.0	)	
Time	 	(1.9	)	(11.2	)	0.2	 	(12.9	)	
Total Interest-Bearing Deposits	 	(0.4	)	(39.3	)	0.4	 	(39.3	)	
Short-Term Borrowings	 	(0.8	)	(2.0	)	-	 	(2.8	)	
Securities Sold Under Agreements to Repurchase	 	1.9	 	(11.4	)	0.1	 	(9.4	)	
Long-Term Debt	 	(1.6	)	-	 	-	 	(1.6	)	
Total Change in Interest Expense	 	(0.9	)	(52.7	)	0.5	 	(53.1	)	
 	 	 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	0.7	 	$	16.3	 	$	0.3	 	$	17.3	 	
 
1         The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume, rate, and time for that category.
2         Comprised of other consumer revolving credit, installment, and consumer lease financing.

 
Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits (Unaudited)	 	 	 	 	 	 	 	Table 8	
 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands)	 	2008	 	2008	 	2007	 	2008	 	2007	 	
Salaries	 	$	30,190	 	$	30,019	 	$	28,882	 	$	89,112	 	$	86,226	 	
Incentive Compensation	 	5,969	 	4,122	 	4,364	 	16,358	 	11,777	 	
Cash for Stock Grants	 	-	 	-	 	-	 	4,640	 	-	 	
Share-Based Compensation	 	1,180	 	1,124	 	1,601	 	3,952	 	4,161	 	
Commission Expense	 	1,653	 	1,992	 	1,546	 	5,518	 	5,700	 	
Retirement and Other Benefits	 	3,097	 	3,499	 	3,865	 	11,822	 	10,999	 	
Payroll Taxes	 	2,162	 	2,491	 	2,116	 	8,067	 	7,885	 	
Medical, Dental, and Life Insurance	 	2,452	 	2,470	 	2,324	 	7,421	 	6,825	 	
Separation Expense	 	61	 	267	 	246	 	1,331	 	1,364	 	
Total Salaries and Benefits	 	$	46,764	 	$	45,984	 	$	44,944	 	$	148,221	 	$	134,937	 	

 
Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances (Unaudited)	 	 	 	 	 	Table 9	
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2008	 	2008	 	2008	 	20071	 	20071	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	1,077,314	 	$	1,052,319	 	$	1,079,772	 	$	1,054,355	 	$	1,065,258	 	
Commercial Mortgage	 	708,961	 	680,784	 	650,638	 	634,483	 	627,329	 	
Construction	 	153,364	 	168,678	 	190,521	 	208,670	 	254,062	 	
Lease Financing	 	467,279	 	471,443	 	465,945	 	481,882	 	478,988	 	
Total Commercial	 	2,406,918	 	2,373,224	 	2,386,876	 	2,379,390	 	2,425,637	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	2,496,983	 	2,509,133	 	2,530,207	 	2,508,261	 	2,510,313	 	
Home Equity	 	986,379	 	966,108	 	967,146	 	972,995	 	953,713	 	
Automobile	 	395,015	 	413,338	 	430,920	 	443,011	 	440,525	 	
Other2	 	254,163	 	256,325	 	264,188	 	277,204	 	269,727	 	
Total Consumer	 	4,132,540	 	4,144,904	 	4,192,461	 	4,201,471	 	4,174,278	 	
Total Loans and Leases	 	$	6,539,458	 	$	6,518,128	 	$	6,579,337	 	$	6,580,861	 	$	6,599,915	 	
 
Air Transportation Credit Exposure3 (Unaudited)	 	 	 	 	 	 	
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2008	 	2008	 	2008	 	2007 	 	2007 	 	
Passenger Carriers Based In the United States	 	$	60,260	 	$	60,603	 	$	61,190	 	$	64,947	 	$	64,867	 	
Passenger Carriers Based Outside the United States	 	5,809	 	7,161	 	7,258	 	19,078	 	19,162	 	
Cargo Carriers	 	13,689	 	13,568	 	13,472	 	13,390	 	13,326	 	
Total Air Transportation Credit Exposure	 	$	79,758	 	$	81,332	 	$	81,920	 	$	97,415	 	$	97,355	 	
 
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	
 	 	September 30,	 	June 30,	 	March 31,	 	December 31, 	 	September 30, 	 	
(dollars in thousands)	 	2008	 	2008	 	2008	 	20071	 	20071	 	
Non-Performing Assets	 	 	 	 	 	 	 	 	 	 	 	
Non-Accrual Loans and Leases	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	574	 	$	1,119	 	$	794	 	$	598	 	$	359	 	
Commercial Mortgage	 	-	 	-	 	-	 	112	 	123	 	
Lease Financing	 	149	 	329	 	504	 	297	 	-	 	
Total Commercial	 	723	 	1,448	 	1,298	 	1,007	 	482	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	3,749	 	3,784	 	3,235	 	2,681	 	3,237	 	
Home Equity	 	1,162	 	1,189	 	1,187	 	1,414	 	436	 	
Other2	 	-	 	30	 	31	 	-	 	-	 	
Total Consumer	 	4,911	 	5,003	 	4,453	 	4,095	 	3,673	 	
Total Non-Accrual Loans and Leases	 	5,634	 	6,451	 	5,751	 	5,102	 	4,155	 	
Foreclosed Real Estate	 	293	 	229	 	294	 	184	 	105	 	
Total Non-Performing Assets	 	$	5,927	 	$	6,680	 	$	6,045	 	$	5,286	 	$	4,260	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Accruing Loans and Leases Past Due 90 Days or More	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	-	 	$	-	 	$	24	 	$	-	 	$	-	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	3,455	 	2,601	 	3,892	 	4,884	 	639	 	
Home Equity	 	296	 	201	 	328	 	413	 	115	 	
Automobile	 	758	 	625	 	865	 	1,174	 	734	 	
Other2	 	926	 	756	 	725	 	1,112	 	944	 	
Total Consumer	 	5,435	 	4,183	 	5,810	 	7,583	 	2,432	 	
Total Accruing Loans and Leases Past Due 90 Days or More	 	$	5,435	 	$	4,183	 	$	5,834	 	$	7,583	 	$	2,432	 	
Total Loans and Leases	 	$	6,539,458	 	$	6,518,128	 	$	6,579,337	 	$	6,580,861	 	$	6,599,915	 	
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	 	0.09	%	0.10	%	0.09	%	0.08	%	0.06	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate	 	0.09	%	0.10	%	0.09	%	0.08	%	0.06	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases	 	0.03	%	0.06	%	0.05	%	0.04	%	0.02	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Foreclosed Real Estate	 	0.13	%	0.13	%	0.11	%	0.10	%	0.09	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases	 	0.17	%	0.17	%	0.18	%	0.20	%	0.10	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Quarter to Quarter Changes in Non-Performing Assets Balance at Beginning of Quarter	 	$	6,680	 	$	6,045	 	$	5,286	 	$	4,260	 	$	6,314	 	
Additions	 	1,355	 	2,900	 	2,614	 	1,866	 	662	 	
Reductions	 	 	 	 	 	 	 	 	 	 	 	
Payments	 	(955	)	(630	)	(386	)	(256	)	(1,741	)	
Return to Accrual Status	 	(756	)	(943	)	(944	)	(214	)	(787	)	
Sales of Foreclosed Real Estate	 	-	 	-	 	-	 	(161	)	(48	)	
Charge-offs/Write-downs	 	(397	)	(692	)	(525	)	(209	)	(140	)	
Total Reductions	 	(2,108	)	(2,265	)	(1,855	)	(840	)	(2,716	)	
Balance at End of Quarter	 	$	5,927	 	$	6,680	 	$	6,045	 	$	5,286	 	$	4,260	 	

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	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30, 	 	September 30,	 	
(dollars in thousands)	 	2008	 	2008	 	20071	 	2008	 	20071	 	
Balance at Beginning of Period	 	$	107,667	 	$	105,167	 	$	96,167	 	$	96,167	 	$	96,167	 	
Loans and Leases Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(1,783	)	(1,396	)	(715	)	(4,568	)	(2,258	)	
Lease Financing	 	(27	)	(142	)	(123	)	(303	)	(145	)	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	(398	)	(133	)	-	 	(531	)	(47	)	
Home Equity	 	(519	)	(473	)	(422	)	(1,798	)	(764	)	
Automobile	 	(2,858	)	(2,187	)	(2,215	)	(7,960	)	(7,642	)	
Other2	 	(3,444	)	(1,954	)	(2,389	)	(8,202	)	(6,871	)	
Total Loans and Leases Charged-Off	 	(9,029	)	(6,285	)	(5,864	)	(23,362	)	(17,727	)	
Recoveries on Loans and Leases Previously Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	220	 	201	 	326	 	1,407	 	918	 	
Commercial Mortgage	 	-	 	-	 	35	 	-	 	156	 	
Lease Financing	 	2	 	2	 	2	 	7	 	2,089	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	67	 	17	 	14	 	162	 	203	 	
Home Equity	 	36	 	26	 	69	 	83	 	189	 	
Automobile	 	699	 	700	 	596	 	2,195	 	1,980	 	
Other2	 	647	 	667	 	752	 	2,051	 	2,128	 	
Total Recoveries on Loans and Leases Previously Charged-Off	 	1,671	 	1,613	 	1,794	 	5,905	 	7,663	 	
Net Loans and Leases Charged-Off	 	(7,358	)	(4,672	)	(4,070	)	(17,457	)	(10,064	)	
Provision for Credit Losses	 	20,358	 	7,172	 	4,070	 	41,957	 	10,064	 	
Balance at End of Period3	 	$	120,667	 	$	107,667	 	$	96,167	 	$	120,667	 	$	96,167	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Components	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	115,498	 	$	102,498	 	$	90,998	 	$	115,498	 	$	90,998	 	
Reserve for Unfunded Commitments	 	5,169	 	5,169	 	5,169	 	5,169	 	5,169	 	
Total Reserve for Credit Losses	 	$	120,667	 	$	107,667	 	$	96,167	 	$	120,667	 	$	96,167	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases Outstanding	 	$	6,512,453	 	$	6,531,587	 	$	6,570,261	 	$	6,543,871	 	$	6,554,979	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)	 	0.45	%	0.29	%	0.25	%	0.36	%	0.21	%	
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding	 	1.77	%	1.57	%	1.38	%	1.77	%	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 Segments Selected Financial Information (Unaudited)	 	Table 12a	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	Commercial	 	Investment	 	 	 	 	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	Total	 	Treasury	 	Total	 	
Three Months Ended September 30, 2008	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	58,228	 	$	36,564	 	$	3,922	 	$	98,714	 	$	4,861	 	$	103,575	 	
Provision for Credit Losses	 	5,475	 	13,826	 	1,089	 	20,390	 	(32	)	20,358	 	
Net Interest Income After Provision for Credit Losses	 	52,753	 	22,738	 	2,833	 	78,324	 	4,893	 	83,217	 	
Noninterest Income	 	27,380	 	10,508	 	17,458	 	55,346	 	1,640	 	56,986	 	
Noninterest Expense	 	(43,709	)	(24,488	)	(16,800	)	(84,997	)	(1,793	)	(86,790	)	
Income Before Provision for Income Taxes	 	36,424	 	8,758	 	3,491	 	48,673	 	4,740	 	53,413	 	
Provision for Income Taxes	 	(13,478	)	8,234	 	(1,292	)	(6,536	)	532	 	(6,004	)	
Allocated Net Income	 	22,946	 	16,992	 	2,199	 	42,137	 	5,272	 	47,409	 	
Allowance Funding Value	 	(229	)	(944	)	(16	)	(1,189	)	1,189	 	-	 	
Provision for Credit Losses	 	5,475	 	13,826	 	1,089	 	20,390	 	(32	)	20,358	 	
Economic Provision	 	(1,912	)	(3,222	)	(78	)	(5,212	)	(1	)	(5,213	)	
Tax Effect of Adjustments	 	(1,234	)	(3,574	)	(369	)	(5,177	)	(426	)	(5,603	)	
Income Before Capital Charge	 	25,046	 	23,078	 	2,825	 	50,949	 	6,002	 	56,951	 	
Capital Charge	 	(4,780	)	(4,127	)	(1,465	)	(10,372	)	(9,135	)	(19,507	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	20,266	 	$	18,951	 	$	1,360	 	$	40,577	 	$	(3,133	)	$	37,444	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	52	%	56	%	19	%	49	%	30	%	24	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets as of September 30, 2008	 	$	3,669,924	 	$	3,023,242	 	$	285,497	 	$	6,978,663	 	$	3,356,384	 	$	10,335,047	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended September 30, 2007 1	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income (Loss)	 	$	56,830	 	$	40,352	 	$	3,574	 	$	100,756	 	$	(2,200	)	$	98,556	 	
Provision for Credit Losses	 	1,773	 	2,486	 	(1	)	4,258	 	(188	)	4,070	 	
Net Interest Income (Loss) After Provision for Credit Losses	 	55,057	 	37,866	 	3,575	 	96,498	 	(2,012	)	94,486	 	
Noninterest Income	 	26,346	 	11,442	 	18,068	 	55,856	 	5,386	 	61,242	 	
Noninterest Expense	 	(41,653	)	(22,430	)	(16,074	)	(80,157	)	(1,293	)	(81,450	)	
Income Before Provision for Income Taxes	 	39,750	 	26,878	 	5,569	 	72,197	 	2,081	 	74,278	 	
Provision for Income Taxes	 	(14,707	)	(9,948	)	(2,060	)	(26,715	)	216	 	(26,499	)	
Allocated Net Income	 	25,043	 	16,930	 	3,509	 	45,482	 	2,297	 	47,779	 	
Allowance Funding Value	 	(166	)	(824	)	(11	)	(1,001	)	1,001	 	-	 	
Provision for Credit Losses	 	1,773	 	2,486	 	(1	)	4,258	 	(188	)	4,070	 	
Economic Provision	 	(1,906	)	(3,190	)	(87	)	(5,183	)	-	 	(5,183	)	
Tax Effect of Adjustments	 	111	 	564	 	37	 	712	 	(300	)	412	 	
Income Before Capital Charge	 	24,855	 	15,966	 	3,447	 	44,268	 	2,810	 	47,078	 	
Capital Charge	 	(5,132	)	(4,380	)	(1,572	)	(11,084	)	(8,948	)	(20,032	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	19,723	 	$	11,586	 	$	1,875	 	$	33,184	 	$	(6,138	)	$	27,046	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	53	%	40	%	24	%	44	%	9	%	26	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets as of September 30, 2007 1	 	$	3,651,121	 	$	3,118,106	 	$	216,795	 	$	6,986,022	 	$	3,563,573	 	$	10,549,595	 	
 
1  Certain prior period information has been reclassified to conform to current presentation.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	 	
Business Segments Selected Financial Information (Unaudited)	 	Table 12b	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	Commercial	 	Investment	 	 	 	 	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	Total	 	Treasury	 	Total	 	
Nine Months Ended September 30, 2008	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	176,207	 	$	122,663	 	$	11,731	 	$	310,601	 	$	2,322	 	$	312,923	 	
Provision for Credit Losses	 	15,999	 	25,704	 	1,089	 	42,792	 	(835	)	41,957	 	
Net Interest Income After Provision for Credit Losses	 	160,208	 	96,959	 	10,642	 	267,809	 	3,157	 	270,966	 	
Noninterest Income	 	83,196	 	42,753	 	54,738	 	180,687	 	22,963	 	203,650	 	
Noninterest Expense	 	(130,813	)	(72,753	)	(50,026	)	(253,592	)	(10,492	)	(264,084	)	
Income Before Provision for Income Taxes	 	112,591	 	66,959	 	15,354	 	194,904	 	15,628	 	210,532	 	
Provision for Income Taxes	 	(41,660	)	(13,352	)	(5,681	)	(60,693	)	3,067	 	(57,626	)	
Allocated Net Income	 	70,931	 	53,607	 	9,673	 	134,211	 	18,695	 	152,906	 	
Allowance Funding Value	 	(626	)	(2,654	)	(42	)	(3,322	)	3,322	 	-	 	
Provision for Credit Losses	 	15,999	 	25,704	 	1,089	 	42,792	 	(835	)	41,957	 	
Economic Provision	 	(6,000	)	(9,715	)	(243	)	(15,958	)	(2	)	(15,960	)	
Tax Effect of Adjustments	 	(3,468	)	(4,934	)	(297	)	(8,699	)	(920	)	(9,619	)	
Income Before Capital Charge	 	76,836	 	62,008	 	10,180	 	149,024	 	20,260	 	169,284	 	
Capital Charge	 	(14,308	)	(12,260	)	(4,384	)	(30,952	)	(27,421	)	(58,373	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	62,528	 	$	49,748	 	$	5,796	 	$	118,072	 	$	(7,161	)	$	110,911	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	54	%	51	%	23	%	48	%	36	%	26	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets as of September 30, 2008	 	$	3,669,924	 	$	3,023,242	 	$	285,497	 	$	6,978,663	 	$	3,356,384	 	$	10,335,047	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Nine Months Ended September 30, 2007 1	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income (Loss)	 	$	166,855	 	$	120,050	 	$	10,565	 	$	297,470	 	$	(1,899	)	$	295,571	 	
Provision for Credit Losses	 	4,576	 	5,700	 	(1	)	10,275	 	(211	)	10,064	 	
Net Interest Income (Loss) After Provision for Credit Losses	 	162,279	 	114,350	 	10,566	 	287,195	 	(1,688	)	285,507	 	
Noninterest Income	 	78,714	 	31,689	 	56,669	 	167,072	 	13,158	 	180,230	 	
Noninterest Expense	 	(124,096	)	(67,667	)	(47,276	)	(239,039	)	(4,366	)	(243,405	)	
Income Before Provision for Income Taxes	 	116,897	 	78,372	 	19,959	 	215,228	 	7,104	 	222,332	 	
Provision for Income Taxes	 	(43,246	)	(28,881	)	(7,385	)	(79,512	)	23	 	(79,489	)	
Allocated Net Income	 	73,651	 	49,491	 	12,574	 	135,716	 	7,127	 	142,843	 	
Allowance Funding Value	 	(466	)	(2,405	)	(31	)	(2,902	)	2,902	 	-	 	
Provision for Credit Losses	 	4,576	 	5,700	 	(1	)	10,275	 	(211	)	10,064	 	
Economic Provision	 	(5,598	)	(9,629	)	(251	)	(15,478	)	(1	)	(15,479	)	
Tax Effect of Adjustments	 	551	 	2,344	 	104	 	2,999	 	(995	)	2,004	 	
Income Before Capital Charge	 	72,714	 	45,501	 	12,395	 	130,610	 	8,822	 	139,432	 	
Capital Charge	 	(15,300	)	(13,215	)	(4,634	)	(33,149	)	(26,453	)	(59,602	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	57,414	 	$	32,286	 	$	7,761	 	$	97,461	 	$	(17,631	)	$	79,830	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	52	%	38	%	29	%	43	%	9	%	26	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets as of September 30, 2007  1	 	$	3,651,121	 	$	3,118,106	 	$	  216,795	 	$	6,986,022	 	$	3,563,573	 	$	10,549,595	 	
 
1 Certain prior period information has been reclassified to conform to current presentation.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	 	
Selected Quarterly Financial Data (Unaudited)	 	Table 13	
 	 	Three Months Ended	 	
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands, except per share amounts)	 	2008	 	2008	 	2008	 	2007	 	2007	 	
Quarterly Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	92,744	 	$	97,959	 	$	104,413	 	$	111,270	 	$	112,787	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	1,174	 	1,209	 	1,160	 	814	 	1,114	 	
Available-for-Sale	 	35,152	 	35,321	 	34,251	 	33,591	 	33,486	 	
Held-to-Maturity	 	2,870	 	3,033	 	3,239	 	3,440	 	3,616	 	
Deposits	 	33	 	204	 	195	 	309	 	1,086	 	
Funds Sold	 	141	 	420	 	992	 	356	 	1,103	 	
Other	 	490	 	489	 	426	 	395	 	364	 	
Total Interest Income	 	132,604	 	138,635	 	144,676	 	150,175	 	153,556	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	17,736	 	20,238	 	27,465	 	33,158	 	37,613	 	
Securities Sold Under Agreements to Repurchase	 	7,675	 	7,488	 	10,617	 	11,754	 	11,726	 	
Funds Purchased	 	507	 	270	 	633	 	1,936	 	1,654	 	
Short-Term Borrowings	 	13	 	12	 	34	 	91	 	87	 	
Long-Term Debt	 	3,098	 	3,459	 	3,747	 	3,789	 	3,920	 	
Total Interest Expense	 	29,029	 	31,467	 	42,496	 	50,728	 	55,000	 	
Net Interest Income	 	103,575	 	107,168	 	102,180	 	99,447	 	98,556	 	
Provision for Credit Losses	 	20,358	 	7,172	 	14,427	 	5,443	 	4,070	 	
Net Interest Income After Provision for Credit Losses	 	83,217	 	99,996	 	87,753	 	94,004	 	94,486	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	14,193	 	15,460	 	15,086	 	15,812	 	15,146	 	
Mortgage Banking	 	621	 	2,738	 	4,297	 	2,027	 	3,848	 	
Service Charges on Deposit Accounts	 	13,045	 	12,411	 	12,083	 	12,302	 	11,919	 	
Fees, Exchange, and Other Service Charges	 	16,991	 	17,176	 	16,101	 	16,743	 	16,465	 	
Investment Securities Gains, Net	 	159	 	157	 	130	 	105	 	789	 	
Insurance	 	5,902	 	5,590	 	7,130	 	4,629	 	7,446	 	
Other	 	6,075	 	7,007	 	31,298	 	8,639	 	5,629	 	
Total Noninterest Income	 	56,986	 	60,539	 	86,125	 	60,257	 	61,242	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	46,764	 	45,984	 	55,473	 	45,928	 	44,944	 	
Net Occupancy	 	11,795	 	11,343	 	10,443	 	10,300	 	10,267	 	
Net Equipment	 	4,775	 	4,474	 	4,321	 	4,745	 	4,871	 	
Professional Fees	 	3,270	 	2,588	 	2,613	 	3,695	 	2,369	 	
Other	 	20,186	 	19,473	 	20,582	 	27,334	 	18,999	 	
Total Noninterest Expense	 	86,790	 	83,862	 	93,432	 	92,002	 	81,450	 	
Income Before Provision for Income Taxes	 	53,413	 	76,673	 	80,446	 	62,259	 	74,278	 	
Provision for Income Taxes	 	6,004	 	28,391	 	23,231	 	21,399	 	26,499	 	
Net Income	 	$	47,409	 	$	48,282	 	$	57,215	 	$	40,860	 	$	47,779	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Basic Earnings Per Share	 	$	1.00	 	$	1.01	 	$	1.19	 	$	0.84	 	$	0.98	 	
Diluted Earnings Per Share	 	$	0.99	 	$	1.00	 	$	1.18	 	$	0.83	 	$	0.96	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	$	6,539,458	 	$	6,518,128	 	$	6,579,337	 	$	6,580,861	 	$	6,599,915	 	
Total Assets	 	10,335,047	 	10,371,149	 	10,822,801	 	10,472,942	 	10,549,595	 	
Total Deposits	 	7,658,484	 	7,903,990	 	8,102,855	 	7,942,372	 	7,875,166	 	
Total Shareholders’ Equity	 	780,020	 	767,558	 	766,747	 	750,255	 	731,697	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Net Income to Average Total Assets	 	1.82	%	1.85	%	2.16	%	1.55	%	1.79	%	
Net Income to Average Shareholders’ Equity	 	24.17	 	24.82	 	29.88	 	21.51	 	26.02	 	
Efficiency Ratio1	 	54.05	 	50.01	 	49.62	 	57.61	 	50.97	 	
Net Interest Margin2	 	4.33	 	4.41	 	4.17	 	4.12	 	4.03	 	

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.