UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
 
FORM 8-K
 
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of Report               
(Date of earliest event reported) July 27, 2009
 
BANK OF HAWAII CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware	 	1-6887	 	99-0148992	
(State of Incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	
 	 	 	 	 	
130 Merchant Street, Honolulu, Hawaii	 	96813	
(Address of principal executive offices)	 	(Zip Code)	
 
(Registrant’s telephone number, including area code) (808) 694-8822
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

 

 
Item 2.02.	 	 	Results of Operations and Financial Conditions.	
 	 	 	On July 27, 2009, Bank of Hawaii Corporation announced its results of operations for the quarter ending June 30, 2009.  The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.	
 	 	 	 	
Item 9.01.	 	 	Financial Statements and Exhibits	
 	 	 	 	
 	(d)	 	Exhibits	
 	 	 	 	
 	Exhibit No.	 	 	
 	 	 	 	
 	99.1	 	July 27, 2009 Press Release	
 
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 27, 2009	 	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 Second Quarter 2009 Financial Results
 
·     Diluted Earnings Per Share $0.65
·     Net Income for the Quarter $31.0 Million
·     Board of Directors Declares Dividend of $0.45 Per Share
 
FOR IMMEDIATE RELEASE
 
HONOLULU, HI (July 27, 2009) – Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.65 for the second quarter of 2009, down from diluted earnings per share of $1.00 in the same quarter last year.  Net income for the second quarter of 2009 was $31.0 million compared to net income of $48.3 million in the second quarter of 2008.  Results for the second quarter of 2009 included FDIC insurance expense of $9.0 million compared with $0.2 million in the second quarter of 2008.  Second quarter 2009 results also included a provision for credit losses of $28.7 million compared to a provision for credit losses of $7.2 million in the same quarter last year.  The return on average assets for the second quarter of 2009 was 1.06 percent, compared to 1.85 percent during the same quarter last year.  The return on average equity for the second quarter of 2009 was 14.49 percent compared to 24.82 percent for the second quarter of 2008.
 
During the quarter, the Company sold a loan made to a major mall owner, restructured a leveraged lease that involved a bankrupt automobile manufacturer, and wrote down the carrying value of a non-relationship syndicated credit that was subsequently sold.  The result of these three transactions was an increase in net charge-offs of $13.6 million.
 
Average deposits increased $471 million during the second quarter of 2009.  Shareholders’ equity increased $12 million to $846 million at June 30, 2009.  The allowance for loan and lease losses increased $3 million during the second quarter of 2009 and currently represents 2.23 percent of outstanding loans and leases.
 
“We continued to pursue our near-term strategies of maintaining strong liquidity, reserves, and capital during the second quarter of 2009,” said Allan R. Landon, Chairman, and CEO.  “Our profitability during the quarter was helped by increased net interest income.  The Company’s results included an industry-wide FDIC assessment and losses from the resolution of three significant credits.  Bank of Hawaii has a strong balance sheet and is well prepared.”
 
- more -

 

 
For the six months ended June 30, 2009, net income was $67.0 million, down $38.5 million compared to net income of $105.5 million for the same period last year.  Diluted earnings per share were $1.40 for the first half of 2009, down from $2.18 for the first half of 2008.  The year-to-date return on average assets was 1.18 percent, down from 2.01 percent for the same period in 2008.  The year-to-date return on average equity was 16.13 percent, down from 27.33 percent for the six months ended June 30, 2008.
 
Results for the first six months of 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 and expenses for legal contingencies, an industry-wide FDIC assessment, and early debt retirement.  Results for the first half of 2008 included $25.3 million from the redemption of Visa shares and a lessee’s early buy-out of an aircraft lease.  Partially offsetting these prior year gains were expenses for employee incentives, legal contingencies, a call premium on Capital Securities, an increase in the allowance for loan and lease losses, and contributions to the Bank of Hawaii Charitable Foundation.  Details of these items are included in Table 2.
 
Financial Highlights
 
Net interest income, on a taxable equivalent basis, for the second quarter of 2009 was $103.2 million, down $4.2 million from net interest income of $107.4 million in the second quarter of 2008, and up $5.9 million from net interest income of $97.3 million in the first quarter of 2009.  The decrease in net interest income compared to the second quarter of 2008 was largely due to a lower net interest margin resulting from greater liquidity being held at low yields, lower interest rates, and lower levels of loans.  The increase compared to the first quarter of 2009 was mainly due to a higher level of earning assets.  For the six months ended June 30, 2009, net interest income on a taxable-equivalent basis was $200.5 million compared to $209.8 million for the same period in 2008.  Analyses of the changes in net interest income are included in Tables 7a, 7b and 7c.
 
The net interest margin was 3.73 percent for the second quarter of 2009, a 68 basis point decrease from 4.41 percent in the second quarter of 2008 and a decrease of 3 basis points from 3.76 percent in the first quarter of 2009.   For the six months ended June 30, 2009, the net interest margin was 3.75 percent compared to 4.29 percent for the same six months in 2008.  The decrease in the net interest margin was largely the result of lower interest rates and the Company’s strategy to increase liquidity and reduce risk.
 
Results for the second quarter of 2009 included a provision for credit losses of $28.7 million compared with $7.2 million in the second quarter of 2008 and $24.9 million in the first quarter of 2009.  The provision for credit losses exceeded net charge-offs by $3.0 million in the second quarter of 2009.  The provision for credit losses exceeded net charge-offs by $2.5 million in the second quarter of 2008 and exceeded net charge-offs by $10.9 million in the first quarter of 2009.
 
Noninterest income was $59.8 million for the second quarter of 2009, a decrease of $0.7 million compared to $60.5 million in the second quarter of 2008, and a decrease of $10.5 million compared to $70.4 million in the first quarter of 2009.  Noninterest income in the second quarter of 2009 included a gain of $2.8 million related to the Company’s sale of its equity interest in an aircraft lease to a cargo carrier and $0.9 million due to the previously mentioned sale of the retail insurance brokerage business.  Results for the first quarter of 2009 included a gain of $10.0 million related to the disposition of leveraged leases for two watercraft.
 
2

 
Noninterest expense was $89.6 million in the second quarter of 2009, up $5.7 million from $83.9 million in the same quarter last year, and up $1.7 million from $87.9 million in the previous quarter.  Noninterest expense in the second quarter of 2009 included FDIC insurance expense of $9.0 million, including the Company’s $5.7 million share of an industry-wide assessment.  FDIC insurance expense in the second quarter of 2008 was $0.2 million and $1.8 million in the first quarter of 2009.  Salaries and benefits decreased during the second quarter of 2009 primarily due to a reduction in the reserves for medical and dental expenses, and lower payroll taxes.  An analysis of salary and benefit expenses is included in Table 8.
 
The efficiency ratio for the second quarter of 2009 was 55.07 percent, compared with an efficiency ratio of 50.01 percent in the same quarter last year and 52.52 percent in the previous quarter.  The efficiency ratio for the first half of 2009 was 53.78 percent compared with 49.80 percent for the same period last year.
 
The effective tax rate for the second quarter of 2009 was 30.18 percent compared to 37.03 percent during the same quarter last year and 34.00 percent in the previous quarter.  The lower effective tax rate in the second quarter of 2009 was primarily due to accounting for the termination of the leveraged lease that resulted in a $1.6 million income tax benefit.
 
The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury & Other.  Results are determined based on the Company’s internal financial management reporting process and organizational structure.  Selected financial information for the business segments is included in Tables 12a and 12b.
 
Asset Quality
 
Credit quality continued to reflect the weak economy during the second quarter of 2009.  Non-accrual loans and leases were $38.6 million at the end of June 30, 2009, up from $6.5 million at June 30, 2008, and down from $40.0 million at March 31, 2009.  As a percentage of total loans and leases, non-accrual loans and leases were 0.63 percent at June 30, 2009.  The decrease in non-accrual loans and leases compared to the prior quarter was due to the previously mentioned sale of a commercial loan made to a mall owner, which was partially offset by an increase in consumer non-accrual loans.   The increase in non-accrual consumer loans was largely due to land loans, second homes, and investor properties on neighbor islands.  More information on changes in nonperforming assets is presented in Table 10.
 
During the quarter, the Company restructured an existing leveraged lease covering 31 locomotives, which was originally guaranteed by an automotive company that went through bankruptcy proceedings.  The restructured lease is now accounted for as a direct financing lease.  In terminating the existing leveraged lease transaction, the Company removed $17.9 million from lease outstandings, recognized $45.9 million in the new direct financing lease, and recognized $32.4 million in non-recourse debt.  As a result of the restructuring, the Company recorded a $4.4 million charge-off and a $1.6 million income tax benefit.
 
Net charge-offs during the second quarter of 2009 were $25.7 million compared to $4.7 million in the second quarter last year and $14.0 million in the first quarter of 2009.  Net charge-offs for the second quarter of 2009 included $6.9 million for the previously discussed commercial loan sold during the quarter, $4.4 million as a result of the lease restructuring, and $2.3 million related to a syndicated credit that was sold.  The remaining net charge-offs were largely in the consumer portfolio.
 
3

 
The allowance for loan and lease losses was $137.4 million at June 30, 2009, up from $102.5 million at June 30, 2008, and up from $134.4 million at March 31, 2009.  The ratio of the allowance for loan and lease losses to total loans and leases increased to 2.23 percent at June 30, 2009.  The reserve for unfunded commitments at June 30, 2009 was $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 $12.19 billion at June 30, 2009, up $1.82 billion from $10.37 billion at June 30, 2008, and up $747 million from $11.45 billion at March 31, 2009.  Average total assets were $11.75 billion during the second quarter of 2009, up $1.25 billion from $10.50 billion during the second quarter last year, and up $657 million from $11.10 billion during the previous quarter.  The growth in assets was the result of the Company’s strong deposit generation.
 
Total loans and leases were $6.15 billion at June 30, 2009, down $368 million from $6.52 billion at June 30, 2008, and down $189 million compared with $6.34 billion at March 31, 2009.  Average loans and leases were $6.26 billion during the second quarter of 2009, down $273 million from average loans and leases of $6.53 billion during the second quarter last year, and down $188 million from $6.45 billion during the previous quarter.  Total commercial loans were $2.33 billion at June 30, 2009, down $44 million from $2.37 billion at June 30, 2008, and down slightly from March 31, 2009.  Total consumer loans were $3.82 billion at June 30, 2009, down in all loan products compared with previous quarters due to reduced consumer demand.  Loan and lease portfolio balances are summarized in Tables 6a, 6b, and 9.
 
Total deposits were $9.02 billion at June 30, 2009, up $1.12 billion from $7.90 billion at June 30, 2008, and down $193 million from $9.21 billion at March 31, 2009.  The increase in total deposits compared with the same period last year was widespread among deposit categories.  The decrease in deposits compared with the previous quarter was due to a reduction in public funds, partially offset by continued growth in consumer and commercial deposits.  Average total deposits were $9.22 billion during the second quarter of 2009, up $1.26 billion from $7.96 billion during the second quarter last year, and up $471 million from $8.75 billion during the previous quarter.  Deposit balances are summarized in Table 9.
 
Total long-term debt was $91.4 million at June 30, 2009, down $113.9 million from long-term debt of $205.4 million at June 30, 2008, and up $32.4 million from $59.0 million at March 31, 2009.  The decrease compared to the same quarter last year was due to the repayment of $119.0 million in subordinated notes and the early payment of $25.0 million in privately placed notes during the first quarter of 2009.  The increase in long-term debt compared to the previous quarter was due to the accounting for the previously discussed leveraged lease restructure.
 
Consistent with the Company’s plans to build capital levels, no shares were repurchased during the second quarter of 2009.  Remaining buyback authority under the share repurchase program was $85.4 million at June 30, 2009.  Total shareholders’ equity was $845.9 million at June 30, 2009, up from $767.6 million at June 30, 2008, and up from $833.9 million at March 31, 2009.  The ratio of tangible common equity to risk weighted assets was 13.02 percent at June 30, 2009, up from 10.81 percent at June 30, 2008, and up from 12.47 percent at March 31, 2009.  At June 30, 2009, the Tier 1 leverage ratio was 6.66 percent compared to 7.01 percent at June 30, 2008 and 6.94 percent at March 31, 2009.  The decrease in the Tier 1 leverage ratio compared with the prior quarters was due to significant growth in marketable securities.
 
4

 
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 September 15, 2009 to shareholders of record at the close of business on August 31, 2009.
 
Hawaii Economy
 
Hawaii’s economy continued to reflect weakness during the second quarter of 2009.  The statewide unemployment rate increased to 7.4 percent on a seasonally adjusted basis during the quarter and total jobs contracted 3.1 percent from the beginning of the year.  Residential real estate prices in Hawaii have held their value better than many U. S. mainland markets.  While total 30 days-plus mortgage delinquencies in the state of Hawaii rose to 5.64 percent, they remain significantly below the national average of 8.22 percent.  Bank of Hawaii’s 30 days-plus mortgage delinquencies were 1.07 percent at June 30, 2009.  Visitor levels, both arrivals and expenditures, remain below the comparable periods last year, although arrivals from the Pacific states, the largest regional market, rose 5.4 percent in May, the first increase since February 2008.  More information on Hawaii economic trends is presented in Table 14.
 
Conference Call Information
 
The Company will review its second quarter 2009 financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time).  The conference call will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation’s web site, www.boh.com.  The conference call number for participants in the United States is 866-383-8008.  International participants should call 617-597-5341.  No pass code is required.  A replay of the conference call will be available for one week beginning Monday, July 27, 2009 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the pass code number 75775269 when prompted.  A replay will also be available on the Company’s web site.
 
Forward-Looking Statements
 
This news release, and other statements made by the Company in connection with it may contain “forward-looking statements”, such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations.  Do not unduly rely on forward-looking statements.  Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation’s Annual Report on Form 10-K for the year ended December 31, 2008, which was filed with the U.S. Securities and Exchange Commission.  We have not committed to update forward-looking statements to reflect later events or circumstances.
 
Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers, and governments in Hawaii, American Samoa, and the West Pacific.  The Company’s principal subsidiary, Bank of Hawaii, was founded in 1897 and is the largest independent financial institution in Hawaii.  For more information about Bank of Hawaii Corporation, see the Company’s web site, www.boh.com.
 
# # # #
 
5

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Financial Highlights (Unaudited)	 	Table 1	
 
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands, except per share amounts)	 	2009	 	2009	 	2008	 	2009	 	2008	 	
For the Period:	 	 	 	 	 	 	 	 	 	 	 	
Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	102,851	 	$	97,062	 	$	107,168	 	$	199,913	 	$	209,348	 	
Provision for Credit Losses	 	28,690	 	24,887	 	7,172	 	53,577	 	21,599	 	
Total Noninterest Income	 	59,832	 	70,365	 	60,539	 	130,197	 	146,664	 	
Total Noninterest Expense	 	89,584	 	87,933	 	83,862	 	177,517	 	177,294	 	
Net Income	 	31,006	 	36,040	 	48,282	 	67,046	 	105,497	 	
Basic Earnings Per Share	 	0.65	 	0.76	 	1.01	 	1.41	 	2.20	 	
Diluted Earnings Per Share	 	0.65	 	0.75	 	1.00	 	1.40	 	2.18	 	
Dividends Declared Per Share	 	0.45	 	0.45	 	0.44	 	0.90	 	0.88	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.06	%	1.32	%	1.85	%	1.18	%	2.01	%	
Return on Average Shareholders’ Equity	 	14.49	 	17.86	 	24.82	 	16.13	 	27.33	 	
Efficiency Ratio (1)	 	55.07	 	52.52	 	50.01	 	53.78	 	49.80	 	
Operating Leverage (2)	 	(8.04	)	2.41	 	(11.62	)	(14.62	)	16.01	 	
Net Interest Margin (3)	 	3.73	 	3.76	 	4.41	 	3.75	 	4.29	 	
Dividend Payout Ratio (4)	 	69.23	 	59.21	 	43.56	 	63.83	 	40.00	 	
Average Shareholders’ Equity to Average Assets	 	7.30	 	7.37	 	7.45	 	7.34	 	7.34	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Balances	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases	 	$	6,258,403	 	$	6,446,513	 	$	6,531,587	 	$	6,351,938	 	$	6,559,753	 	
Average Assets	 	11,753,580	 	11,096,322	 	10,504,421	 	11,426,766	 	10,574,162	 	
Average Deposits	 	9,222,130	 	8,751,374	 	7,958,171	 	8,988,053	 	7,955,360	 	
Average Shareholders’ Equity	 	858,139	 	818,218	 	782,429	 	838,288	 	776,293	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Market Price Per Share of Common Stock	 	 	 	 	 	 	 	 	 	 	 	
Closing	 	$	35.83	 	$	32.98	 	$	47.80	 	$	35.83	 	$	47.80	 	
High	 	41.42	 	45.24	 	57.37	 	45.24	 	57.37	 	
Low	 	31.35	 	25.33	 	46.62	 	25.33	 	40.95	 	
 	 	 	 	 	 	 	 	 	 	
 	 	June 30,	 	March 31,	 	December 31,	 	June 30,	 	
 	 	2009	 	2009	 	2008	 	2008	 	
As of Period End:	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	$	6,149,911	 	$	6,338,726	 	$	6,530,233	 	$	6,518,128	 	
Total Assets	 	12,194,695	 	11,448,128	 	10,763,475	 	10,371,149	 	
Total Deposits	 	9,019,661	 	9,212,791	 	8,292,098	 	7,903,990	 	
Long-Term Debt	 	91,432	 	59,003	 	203,285	 	205,351	 	
Total Shareholders’ Equity	 	845,885	 	833,935	 	790,704	 	767,558	 	
 	 	 	 	 	 	 	 	 	 	
Asset Quality	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	137,416	 	$	134,416	 	$	123,498	 	$	102,498	 	
Non-Performing Assets	 	39,054	 	40,329	 	14,949	 	6,680	 	
 	 	 	 	 	 	 	 	 	 	
Financial Ratios	 	 	 	 	 	 	 	 	 	
Allowance to Loans and Leases Outstanding	 	2.23	%	2.12	%	1.89	%	1.57	%	
Tier 1 Capital Ratio	 	12.56	 	12.02	 	11.24	 	10.86	 	
Total Capital Ratio	 	13.82	 	13.28	 	12.49	 	12.12	 	
Leverage Ratio (5)	 	6.66	 	6.94	 	7.30	 	7.01	 	
Tangible Common Equity to Total Assets (6)	 	6.65	 	6.97	 	7.01	 	7.06	 	
Tangible Common Equity to Risk-Weighted Assets (6)	 	13.02	 	12.47	 	11.28	 	10.81	 	
 	 	 	 	 	 	 	 	 	 	
Non-Financial Data	 	 	 	 	 	 	 	 	 	
Full-Time Equivalent Employees	 	2,533	 	2,587	 	2,581	 	2,534	 	
Branches and Offices	 	85	 	85	 	85	 	84	 	
ATMs	 	486	 	463	 	462	 	417	 	

(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 was revised from 7.04%.	
(6)	Tangible common equity, a non-GAAP financial measure, is defined by the Company as shareholders’ equity minus goodwill and intangible assets. Intangible assets are included as a component of other assets in the Consolidated Statements of Condition (Unaudited).	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Net Significant Income (Expense) Items (Unaudited)	 	Table 2	
 
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands)	 	2009	 	2009	 	2008	 	2009	 	2008	 	
Gain on Disposal of Leased Equipment	 	$	2,782	 	$	10,036	 	$	—	 	$	12,818	 	$	11,588	 	
Gain on Sale of BOHIS	 	852	 	—	 	—	 	852	 	—	 	
Gain on Mandatory Redemption of Visa Shares	 	—	 	—	 	—	 	—	 	13,737	 	
Increase in Allowance for Loan and Lease Losses	 	(3,000	)	(10,918	)	(2,500	)	(13,918	)	(11,500	)	
FDIC Special Assessment	 	(5,744	)	—	 	—	 	(5,744	)	—	 	
Market Premium on Repurchased Long-Term Privately Placed Debt	 	—	 	(875	)	—	 	(875	)	—	 	
Cash Grants for the Purchase of Company Stock	 	—	 	—	 	—	 	—	 	(4,640	)	
Employee Incentive Awards	 	—	 	—	 	—	 	—	 	(4,386	)	
Legal Contingencies	 	—	 	(1,500	)	—	 	(1,500	)	(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 Benefit for Income Taxes	 	(5,110	)	(3,257	)	(2,500	)	(8,367	)	3,576	 	
Benefit for Income Taxes	 	(1,472	)	(780	)	(875	)	(2,252	)	(4,256	)	
Net Significant Income (Expense) Items	 	$	(3,638	)	$	(2,477	)	$	(1,625	)	$	(6,115	)	$	7,832	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Income (Unaudited)	 	Table 3	
 
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands, except per share amounts)	 	2009	 	2009	 	2008 (1)	 	2009	 	2008 (1)	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	83,342	 	$	86,592	 	$	97,959	 	$	169,934	 	$	202,372	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	—	 	594	 	1,209	 	594	 	2,369	 	
Available-for-Sale	 	38,155	 	32,301	 	35,321	 	70,456	 	69,572	 	
Held-to-Maturity	 	2,369	 	2,567	 	3,033	 	4,936	 	6,272	 	
Deposits	 	5	 	10	 	204	 	15	 	399	 	
Funds Sold	 	526	 	577	 	420	 	1,103	 	1,412	 	
Other	 	276	 	276	 	489	 	552	 	915	 	
Total Interest Income	 	124,673	 	122,917	 	138,635	 	247,590	 	283,311	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	14,481	 	17,025	 	20,238	 	31,506	 	47,703	 	
Securities Sold Under Agreements to Repurchase	 	6,477	 	6,652	 	7,488	 	13,129	 	18,105	 	
Funds Purchased	 	5	 	5	 	270	 	10	 	903	 	
Short-Term Borrowings	 	—	 	—	 	12	 	—	 	46	 	
Long-Term Debt	 	859	 	2,173	 	3,459	 	3,032	 	7,206	 	
Total Interest Expense	 	21,822	 	25,855	 	31,467	 	47,677	 	73,963	 	
Net Interest Income	 	102,851	 	97,062	 	107,168	 	199,913	 	209,348	 	
Provision for Credit Losses	 	28,690	 	24,887	 	7,172	 	53,577	 	21,599	 	
Net Interest Income After Provision for Credit Losses	 	74,161	 	72,175	 	99,996	 	146,336	 	187,749	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	11,881	 	11,632	 	15,460	 	23,513	 	30,546	 	
Mortgage Banking	 	5,443	 	8,678	 	2,738	 	14,121	 	7,035	 	
Service Charges on Deposit Accounts	 	12,910	 	13,386	 	12,411	 	26,296	 	24,494	 	
Fees, Exchange, and Other Service Charges	 	15,410	 	14,976	 	16,103	 	30,386	 	31,494	 	
Investment Securities Gains, Net	 	12	 	56	 	157	 	68	 	287	 	
Insurance	 	4,744	 	5,641	 	5,590	 	10,385	 	12,720	 	
Other	 	9,432	 	15,996	 	8,080	 	25,428	 	40,088	 	
Total Noninterest Income	 	59,832	 	70,365	 	60,539	 	130,197	 	146,664	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	44,180	 	47,028	 	45,984	 	91,208	 	101,457	 	
Net Occupancy	 	10,008	 	10,328	 	11,343	 	20,336	 	21,786	 	
Net Equipment	 	4,502	 	4,316	 	4,474	 	8,818	 	8,795	 	
Professional Fees	 	4,005	 	2,549	 	2,588	 	6,554	 	5,201	 	
FDIC Insurance	 	8,987	 	1,814	 	247	 	10,801	 	496	 	
Other	 	17,902	 	21,898	 	19,226	 	39,800	 	39,559	 	
Total Noninterest Expense	 	89,584	 	87,933	 	83,862	 	177,517	 	177,294	 	
Income Before Provision for Income Taxes	 	44,409	 	54,607	 	76,673	 	99,016	 	157,119	 	
Provision for Income Taxes	 	13,403	 	18,567	 	28,391	 	31,970	 	51,622	 	
Net Income	 	$	31,006	 	$	36,040	 	$	48,282	 	$	67,046	 	$	105,497	 	
Basic Earnings Per Share	 	$	0.65	 	$	0.76	 	$	1.01	 	$	1.41	 	$	2.20	 	
Diluted Earnings Per Share	 	$	0.65	 	$	0.75	 	$	1.00	 	$	1.40	 	$	2.18	 	
Dividends Declared Per Share	 	$	0.45	 	$	0.45	 	$	0.44	 	$	0.90	 	$	0.88	 	
Basic Weighted Average Shares	 	47,682,604	 	47,566,005	 	47,733,278	 	47,624,521	 	47,849,945	 	
Diluted Weighted Average Shares	 	47,948,531	 	47,802,249	 	48,300,049	 	47,876,509	 	48,423,619	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Condition (Unaudited)	 	Table 4	
 
 	 	June 30,	 	March 31,	 	December 31,	 	June 30,	 	
(dollars in thousands)	 	2009	 	2009	 	2008	 	2008 (1)	 	
Assets	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	4,537	 	$	5,031	 	$	5,094	 	$	6,056	 	
Funds Sold	 	656,000	 	895,595	 	405,789	 	—	 	
Investment Securities	 	 	 	 	 	 	 	 	 	
Trading	 	—	 	—	 	91,500	 	94,347	 	
Available-for-Sale	 	4,292,911	 	3,106,608	 	2,519,239	 	2,646,506	 	
Held-to-Maturity (Fair Value of $214,484; $233,633; $242,175; and $255,905)	 	209,807	 	228,177	 	239,635	 	260,592	 	
Loans Held for Sale	 	40,994	 	24,121	 	21,540	 	11,183	 	
Loans and Leases	 	6,149,911	 	6,338,726	 	6,530,233	 	6,518,128	 	
Allowance for Loan and Lease Losses	 	(137,416	)	(134,416	)	(123,498	)	(102,498	)	
Net Loans and Leases	 	6,012,495	 	6,204,310	 	6,406,735	 	6,415,630	 	
Total Earning Assets	 	11,216,744	 	10,463,842	 	9,689,532	 	9,434,314	 	
Cash and Noninterest-Bearing Deposits	 	294,022	 	299,393	 	385,599	 	280,635	 	
Premises and Equipment	 	112,681	 	114,536	 	116,120	 	117,323	 	
Customers’ Acceptances	 	2,084	 	822	 	1,308	 	1,856	 	
Accrued Interest Receivable	 	43,042	 	36,928	 	39,905	 	42,295	 	
Foreclosed Real Estate	 	438	 	346	 	428	 	229	 	
Mortgage Servicing Rights	 	24,731	 	23,528	 	21,057	 	30,272	 	
Goodwill	 	34,959	 	34,959	 	34,959	 	34,959	 	
Other Assets	 	465,994	 	473,774	 	474,567	 	429,266	 	
Total Assets	 	$	12,194,695	 	$	11,448,128	 	$	10,763,475	 	$	10,371,149	 	
 	 	 	 	 	 	 	 	 	 	
Liabilities	 	 	 	 	 	 	 	 	 	
Deposits	 	 	 	 	 	 	 	 	 	
Noninterest-Bearing Demand	 	$	2,109,270	 	$	1,970,041	 	$	1,754,724	 	$	1,876,782	 	
Interest-Bearing Demand	 	1,589,300	 	1,926,576	 	1,854,611	 	1,631,586	 	
Savings	 	4,054,039	 	3,905,709	 	3,104,863	 	2,816,222	 	
Time	 	1,267,052	 	1,410,465	 	1,577,900	 	1,579,400	 	
Total Deposits	 	9,019,661	 	9,212,791	 	8,292,098	 	7,903,990	 	
Funds Purchased	 	8,670	 	9,665	 	15,734	 	69,400	 	
Short-Term Borrowings	 	10,000	 	10,000	 	4,900	 	10,180	 	
Securities Sold Under Agreements to Repurchase	 	1,799,794	 	844,283	 	1,028,835	 	1,028,518	 	
Long-Term Debt (includes $119,275 and $121,326 carried at fair value as of December 31, 2008 and June 30, 2008, respectively)	 	91,432	 	59,003	 	203,285	 	205,351	 	
Banker’s Acceptances	 	2,084	 	822	 	1,308	 	1,856	 	
Retirement Benefits Payable	 	54,286	 	54,450	 	54,776	 	29,478	 	
Accrued Interest Payable	 	7,765	 	10,010	 	13,837	 	13,588	 	
Taxes Payable and Deferred Taxes	 	226,936	 	258,505	 	229,699	 	250,125	 	
Other Liabilities	 	128,182	 	154,664	 	128,299	 	91,105	 	
Total Liabilities	 	11,348,810	 	10,614,193	 	9,972,771	 	9,603,591	 	
Shareholders’ Equity	 	 	 	 	 	 	 	 	 	
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2009 - 57,028,940 / 47,881,083; March 31, 2009 - 57,019,595 / 47,803,544; December 31, 2008 - 57,019,887 / 47,753,371; and June 30, 2008 - 57,016,182 / 47,941,409)	 	569	 	569	 	568	 	568	 	
Capital Surplus	 	491,784	 	491,352	 	492,515	 	489,335	 	
Accumulated Other Comprehensive Loss	 	(1,870	)	(1,319	)	(28,888	)	(15,813	)	
Retained Earnings	 	811,121	 	802,195	 	787,924	 	745,244	 	
Treasury Stock, at Cost (Shares: June 30, 2009 - 9,147,857; March 31, 2009 - 9,216,051; December 31, 2008 - 9,266,516; and June 30, 2008 - 9,074,773)	 	(455,719	)	(458,862	)	(461,415	)	(451,776	)	
Total Shareholders’ Equity	 	845,885	 	833,935	 	790,704	 	767,558	 	
Total Liabilities and Shareholders’ Equity	 	$	12,194,695	 	$	11,448,128	 	$	10,763,475	 	$	10,371,149	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Shareholders’ Equity (Unaudited)	 	Table 5	

 	 	 	 	 	 	 	 	Accum.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Other	 	 	 	 	 	 	 	
 	 	 	 	Common	 	Capital	 	Comprehensive	 	Retained	 	Treasury	 	Comprehensive	 	
(dollars in thousands)	 	Total	 	Stock	 	Surplus	 	Loss	 	Earnings	 	Stock	 	Income	 	
Balance as of December 31, 2008	 	$	790,704	 	$	568	 	$	492,515	 	$	(28,888	)	$	787,924	 	$	(461,415	)	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	67,046	 	—	 	—	 	—	 	67,046	 	—	 	$	67,046	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	 	26,302	 	—	 	—	 	26,302	 	—	 	—	 	26,302	 	
Amortization of Net Loss Related to Pension and Postretirement Benefit Plans	 	716	 	—	 	—	 	716	 	—	 	—	 	716	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	94,064	 	
Share-Based Compensation	 	944	 	—	 	944	 	—	 	—	 	—	 	 	 	
Net Tax Benefits related to Share-Based Compensation	 	(430	)	—	 	(430	)	—	 	—	 	—	 	 	 	
Common Stock Issued under Purchase and Equity Compensation Plans (152,582 shares)	 	4,517	 	1	 	(1,245	)	—	 	(791	)	6,552	 	 	 	
Common Stock Repurchased (24,870 shares)	 	(856	)	—	 	—	 	—	 	—	 	(856	)	 	 	
Cash Dividends Paid	 	(43,058	)	—	 	—	 	—	 	(43,058	)	—	 	 	 	
Balance as of June 30, 2009	 	$	845,885	 	$	569	 	$	491,784	 	$	(1,870	)	$	811,121	 	$	(455,719	)	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance as of December 31, 2007	 	$	750,255	 	$	567	 	$	484,790	 	$	(5,091	)	$	688,638	 	$	(418,649	)	 	 	
Cumulative-Effect Adjustment of a Change in Accounting Principle, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities, including an amendment of FASB Statement No. 115”	 	(2,736	)	—	 	—	 	—	 	(2,736	)	—	 	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	105,497	 	—	 	—	 	—	 	105,497	 	—	 	$	105,497	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	 	(10,820	)	—	 	—	 	(10,820	)	—	 	—	 	(10,820	)	
Amortization of Net Loss Related to Pension and Postretirement Benefit Plans	 	98	 	—	 	—	 	98	 	—	 	—	 	98	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	94,775	 	
Share-Based Compensation	 	3,072	 	—	 	3,072	 	—	 	—	 	—	 	 	 	
Net Tax Benefits related to Share-Based Compensation	 	1,304	 	—	 	1,304	 	—	 	—	 	—	 	 	 	
Common Stock Issued under Purchase and Equity Compensation Plans (276,946 shares)	 	8,478	 	1	 	169	 	—	 	(3,812	)	12,120	 	 	 	
Common Stock Repurchased (923,330 shares)	 	(45,247	)	—	 	—	 	—	 	—	 	(45,247	)	 	 	
Cash Dividends Paid	 	(42,343	)	—	 	—	 	—	 	(42,343	)	—	 	 	 	
Balance as of June 30, 2008	 	$	767,558	 	$	568	 	$	489,335	 	$	(15,813	)	$	745,244	 	$	(451,776	)	 	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Average Balances and Interest Rates - Taxable Equivalent Basis (Unaudited)	 	Table 6a	
 
 	 	Three Months Ended	 	Three Months Ended	 	Three Months Ended	 	
 	 	June 30, 2009	 	March 31, 2009	 	June 30, 2008 (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	 	$	5.2	 	$	—	 	0.36	%	$	4.9	 	$	—	 	0.84	%	$	33.0	 	$	0.2	 	2.45	%	
Funds Sold	 	833.2	 	0.5	 	0.25	 	912.9	 	0.6	 	0.25	 	81.9	 	0.4	 	2.03	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	—	 	—	 	—	 	48.8	 	0.6	 	4.87	 	97.6	 	1.2	 	4.96	 	
Available-for-Sale	 	3,662.1	 	38.5	 	4.21	 	2,628.7	 	32.5	 	4.95	 	2,649.9	 	35.6	 	5.37	 	
Held-to-Maturity	 	219.9	 	2.4	 	4.31	 	235.0	 	2.6	 	4.37	 	269.6	 	3.1	 	4.50	 	
Loans Held for Sale	 	24.1	 	0.2	 	4.21	 	21.8	 	0.2	 	4.41	 	9.3	 	0.1	 	5.78	 	
Loans and Leases (2)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	984.1	 	9.9	 	4.02	 	1,031.3	 	10.4	 	4.11	 	1,060.7	 	14.3	 	5.42	 	
Commercial Mortgage	 	763.8	 	9.9	 	5.22	 	730.6	 	9.6	 	5.32	 	663.0	 	10.1	 	6.15	 	
Construction	 	144.5	 	1.5	 	4.03	 	154.1	 	1.6	 	4.21	 	177.3	 	2.5	 	5.76	 	
Commercial Lease Financing	 	450.2	 	3.5	 	3.13	 	462.9	 	3.7	 	3.16	 	470.6	 	4.1	 	3.50	 	
Residential Mortgage	 	2,359.0	 	34.6	 	5.88	 	2,437.4	 	36.3	 	5.96	 	2,494.1	 	38.0	 	6.09	 	
Home Equity	 	999.3	 	12.6	 	5.07	 	1,028.7	 	13.0	 	5.13	 	983.7	 	14.3	 	5.85	 	
Automobile	 	325.5	 	6.5	 	7.96	 	356.3	 	7.0	 	7.94	 	423.1	 	8.6	 	8.16	 	
Other (3)	 	232.0	 	4.6	 	7.89	 	245.2	 	4.8	 	7.86	 	259.1	 	5.9	 	9.11	 	
Total Loans and Leases	 	6,258.4	 	83.1	 	5.32	 	6,446.5	 	86.4	 	5.40	 	6,531.6	 	97.8	 	6.01	 	
Other	 	79.7	 	0.3	 	1.39	 	79.7	 	0.3	 	1.39	 	79.6	 	0.5	 	2.46	 	
Total Earning Assets (4)	 	11,082.6	 	125.0	 	4.52	 	10,378.3	 	123.2	 	4.77	 	9,752.5	 	138.9	 	5.71	 	
Cash and Noninterest-Bearing Deposits	 	203.9	 	 	 	 	 	243.4	 	 	 	 	 	272.9	 	 	 	 	 	
Other Assets	 	467.1	 	 	 	 	 	474.6	 	 	 	 	 	479.0	 	 	 	 	 	
Total Assets	 	$	11,753.6	 	 	 	 	 	$	11,096.3	 	 	 	 	 	$	10,504.4	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,907.7	 	0.3	 	0.07	 	$	1,888.6	 	0.3	 	0.06	 	$	1,561.2	 	1.2	 	0.29	 	
Savings	 	4,036.9	 	7.8	 	0.77	 	3,533.0	 	8.2	 	0.94	 	2,861.3	 	6.5	 	0.92	 	
Time	 	1,330.6	 	6.4	 	1.92	 	1,500.8	 	8.5	 	2.30	 	1,646.5	 	12.5	 	3.07	 	
Total Interest-Bearing Deposits	 	7,275.2	 	14.5	 	0.80	 	6,922.4	 	17.0	 	1.00	 	6,069.0	 	20.2	 	1.34	 	
Short-Term Borrowings	 	16.4	 	—	 	0.12	 	18.7	 	—	 	0.11	 	61.2	 	0.3	 	1.82	 	
Securities Sold Under Agreements to Repurchase	 	1,168.2	 	6.5	 	2.20	 	935.4	 	6.7	 	2.85	 	1,060.2	 	7.5	 	2.81	 	
Long-Term Debt	 	71.1	 	0.8	 	4.84	 	148.2	 	2.2	 	5.88	 	224.3	 	3.5	 	6.18	 	
Total Interest-Bearing Liabilities	 	8,530.9	 	21.8	 	1.02	 	8,024.7	 	25.9	 	1.30	 	7,414.7	 	31.5	 	1.70	 	
Net Interest Income	 	 	 	$	103.2	 	 	 	 	 	$	97.3	 	 	 	 	 	$	107.4	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.50	%	 	 	 	 	3.47	%	 	 	 	 	4.01	%	
Net Interest Margin	 	 	 	 	 	3.73	%	 	 	 	 	3.76	%	 	 	 	 	4.41	%	
Noninterest-Bearing Demand Deposits	 	1,946.9	 	 	 	 	 	1,829.0	 	 	 	 	 	1,889.2	 	 	 	 	 	
Other Liabilities	 	417.7	 	 	 	 	 	424.4	 	 	 	 	 	418.1	 	 	 	 	 	
Shareholders’ Equity	 	858.1	 	 	 	 	 	818.2	 	 	 	 	 	782.4	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	11,753.6	 	 	 	 	 	$	11,096.3	 	 	 	 	 	$	10,504.4	 	 	 	 	 	

(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 $331,000, $226,000, and $239,000 for the three months ended June 30, 2009, March 31, 2009, and June 30, 2008, respectively.	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Average Balances and Interest Rates - Taxable Equivalent Basis (Unaudited)	 	Table 6b	
 
 	 	Six Months Ended	 	Six Months Ended	 	
 	 	June 30, 2009	 	June 30, 2008 (1)	 	
 	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	
(dollars in millions)	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	5.0	 	$	—	 	0.59	%	$	30.2	 	$	0.4	 	2.62	%	
Funds Sold	 	872.8	 	1.1	 	0.25	 	110.1	 	1.4	 	2.54	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	24.3	 	0.6	 	4.90	 	96.7	 	2.4	 	4.90	 	
Available-for-Sale	 	3,148.3	 	71.0	 	4.51	 	2,640.8	 	70.0	 	5.31	 	
Held-to-Maturity	 	227.4	 	4.9	 	4.34	 	277.5	 	6.3	 	4.52	 	
Loans Held for Sale	 	23.0	 	0.5	 	4.30	 	9.9	 	0.3	 	5.59	 	
Loans and Leases (2)	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	1,007.6	 	20.3	 	4.06	 	1,062.9	 	30.9	 	5.84	 	
Commercial Mortgage	 	747.3	 	19.5	 	5.27	 	656.0	 	20.5	 	6.30	 	
Construction	 	149.3	 	3.1	 	4.12	 	188.5	 	5.9	 	6.27	 	
Commercial Lease Financing	 	456.5	 	7.2	 	3.14	 	474.2	 	8.1	 	3.43	 	
Residential Mortgage	 	2,398.0	 	71.0	 	5.92	 	2,495.4	 	76.2	 	6.11	 	
Home Equity	 	1,013.9	 	25.6	 	5.10	 	988.6	 	30.7	 	6.23	 	
Automobile	 	340.8	 	13.4	 	7.95	 	430.9	 	17.5	 	8.17	 	
Other (3)	 	238.5	 	9.3	 	7.88	 	263.3	 	12.3	 	9.43	 	
Total Loans and Leases	 	6,351.9	 	169.4	 	5.36	 	6,559.8	 	202.1	 	6.18	 	
Other	 	79.7	 	0.6	 	1.39	 	79.5	 	0.9	 	2.30	 	
Total Earning Assets (4)	 	10,732.4	 	248.1	 	4.64	 	9,804.5	 	283.8	 	5.80	 	
Cash and Noninterest-Bearing Deposits	 	223.6	 	 	 	 	 	283.5	 	 	 	 	 	
Other Assets	 	470.8	 	 	 	 	 	486.2	 	 	 	 	 	
Total Assets	 	$	11,426.8	 	 	 	 	 	$	10,574.2	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,898.2	 	0.6	 	0.07	 	$	1,556.1	 	3.4	 	0.44	 	
Savings	 	3,786.4	 	16.0	 	0.85	 	2,808.2	 	15.8	 	1.13	 	
Time	 	1,415.2	 	14.9	 	2.12	 	1,696.9	 	28.5	 	3.38	 	
Total Interest-Bearing Deposits	 	7,099.8	 	31.5	 	0.89	 	6,061.2	 	47.7	 	1.58	 	
Short-Term Borrowings	 	17.6	 	—	 	0.11	 	70.4	 	1.0	 	2.67	 	
Securities Sold Under Agreements to Repurchase	 	1,052.4	 	13.1	 	2.48	 	1,112.2	 	18.1	 	3.24	 	
Long-Term Debt	 	109.4	 	3.0	 	5.56	 	232.0	 	7.2	 	6.22	 	
Total Interest-Bearing Liabilities	 	8,279.2	 	47.6	 	1.16	 	7,475.8	 	74.0	 	1.98	 	
Net Interest Income	 	 	 	$	200.5	 	 	 	 	 	$	209.8	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.48	%	 	 	 	 	3.82	%	
Net Interest Margin	 	 	 	 	 	3.75	%	 	 	 	 	4.29	%	
Noninterest-Bearing Demand Deposits	 	1,888.3	 	 	 	 	 	1,894.2	 	 	 	 	 	
Other Liabilities	 	421.0	 	 	 	 	 	427.9	 	 	 	 	 	
Shareholders’ Equity	 	838.3	 	 	 	 	 	776.3	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	11,426.8	 	 	 	 	 	$	10,574.2	 	 	 	 	 	

(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 $557,000 and $477,000 for the six months ended June 30, 2009 and 2008, respectively.	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Analysis of Change in Net Interest Income - Taxable Equivalent Basis (Unaudited)	 	Table 7a	
 
 	 	Three Months Ended June 30, 2009	 	
 	 	Compared to March 31, 2009	 	
(dollars in millions)	 	Volume (1)	 	Rate (1)	 	Time (1)	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	 	 	
Funds Sold	 	$	(0.1	)	$	—	 	$	—	 	$	(0.1	)	
Investment Securities	 	 	 	 	 	 	 	 	 	
Trading	 	(0.3	)	(0.3	)	—	 	(0.6	)	
Available-for-Sale	 	11.2	 	(5.5	)	0.3	 	6.0	 	
Held-to-Maturity	 	(0.2	)	(0.1	)	0.1	 	(0.2	)	
Loans and Leases	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(0.4	)	(0.2	)	0.1	 	(0.5	)	
Commercial Mortgage	 	0.4	 	(0.2	)	0.1	 	0.3	 	
Construction	 	(0.1	)	—	 	—	 	(0.1	)	
Commercial Lease Financing	 	(0.1	)	(0.1	)	—	 	(0.2	)	
Residential Mortgage	 	(1.5	)	(0.6	)	0.4	 	(1.7	)	
Home Equity	 	(0.3	)	(0.1	)	—	 	(0.4	)	
Automobile	 	(0.6	)	—	 	0.1	 	(0.5	)	
Other (2)	 	(0.2	)	—	 	—	 	(0.2	)	
Total Loans and Leases	 	(2.8	)	(1.2	)	0.7	 	(3.3	)	
Total Change in Interest Income	 	7.8	 	(7.1	)	1.1	 	1.8	 	
 	 	 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	
Savings	 	1.1	 	(1.6	)	0.1	 	(0.4	)	
Time	 	(0.9	)	(1.3	)	0.1	 	(2.1	)	
Total Interest-Bearing Deposits	 	0.2	 	(2.9	)	0.2	 	(2.5	)	
Securities Sold Under Agreements to Repurchase	 	1.4	 	(1.7	)	0.1	 	(0.2	)	
Long-Term Debt	 	(1.0	)	(0.4	)	—	 	(1.4	)	
Total Change in Interest Expense	 	0.6	 	(5.0	)	0.3	 	(4.1	)	
 	 	 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	7.2	 	$	(2.1	)	$	0.8	 	$	5.9	 	

(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 June 30, 2009	 	
 	 	Compared to June 30, 2008	 	
(dollars in millions)	 	Volume (1)	 	Rate (1)	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	(0.1	)	$	(0.1	)	$	(0.2	)	
Funds Sold	 	0.8	 	(0.7	)	0.1	 	
Investment Securities	 	 	 	 	 	 	 	
Trading	 	(0.6	)	(0.6	)	(1.2	)	
Available-for-Sale	 	11.7	 	(8.8	)	2.9	 	
Held-to-Maturity	 	(0.6	)	(0.1	)	(0.7	)	
Loans Held for Sale	 	0.2	 	(0.1	)	0.1	 	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	(0.9	)	(3.5	)	(4.4	)	
Commercial Mortgage	 	1.4	 	(1.6	)	(0.2	)	
Construction	 	(0.4	)	(0.6	)	(1.0	)	
Commercial Lease Financing	 	(0.2	)	(0.4	)	(0.6	)	
Residential Mortgage	 	(2.0	)	(1.4	)	(3.4	)	
Home Equity	 	0.2	 	(1.9	)	(1.7	)	
Automobile	 	(1.9	)	(0.2	)	(2.1	)	
Other (2)	 	(0.6	)	(0.7	)	(1.3	)	
Total Loans and Leases	 	(4.4	)	(10.3	)	(14.7	)	
Other	 	—	 	(0.2	)	(0.2	)	
Total Change in Interest Income	 	7.0	 	(20.9	)	(13.9	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	0.2	 	(1.1	)	(0.9	)	
Savings	 	2.4	 	(1.1	)	1.3	 	
Time	 	(2.1	)	(4.0	)	(6.1	)	
Total Interest-Bearing Deposits	 	0.5	 	(6.2	)	(5.7	)	
Short-Term Borrowings	 	(0.1	)	(0.2	)	(0.3	)	
Securities Sold Under Agreements to Repurchase	 	0.7	 	(1.7	)	(1.0	)	
Long-Term Debt	 	(2.0	)	(0.7	)	(2.7	)	
Total Change in Interest Expense	 	(0.9	)	(8.8	)	(9.7	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	7.9	 	$	(12.1	)	$	(4.2	)	

(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	 	 	
Analysis of Change in Net Interest Income - Taxable Equivalent Basis (Unaudited)	 	Table 7c	
 
 	 	Six Months Ended June 30, 2009	 	
 	 	Compared to June 30, 2008	 	
(dollars in millions)	 	Volume (1)	 	Rate (1)	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	(0.2	)	$	(0.2	)	$	(0.4	)	
Funds Sold	 	2.0	 	(2.3	)	(0.3	)	
Investment Securities	 	 	 	 	 	 	 	
Trading	 	(1.8	)	—	 	(1.8	)	
Available-for-Sale	 	12.4	 	(11.4	)	1.0	 	
Held-to-Maturity	 	(1.1	)	(0.3	)	(1.4	)	
Loans Held for Sale	 	0.3	 	(0.1	)	0.2	 	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	(1.5	)	(9.1	)	(10.6	)	
Commercial Mortgage	 	2.6	 	(3.6	)	(1.0	)	
Construction	 	(1.0	)	(1.8	)	(2.8	)	
Commercial Lease Financing	 	(0.3	)	(0.6	)	(0.9	)	
Residential Mortgage	 	(2.9	)	(2.3	)	(5.2	)	
Home Equity	 	0.7	 	(5.8	)	(5.1	)	
Automobile	 	(3.6	)	(0.5	)	(4.1	)	
Other (2)	 	(1.1	)	(1.9	)	(3.0	)	
Total Loans and Leases	 	(7.1	)	(25.6	)	(32.7	)	
Other	 	—	 	(0.3	)	(0.3	)	
Total Change in Interest Income	 	4.5	 	(40.2	)	(35.7	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	0.6	 	(3.4	)	(2.8	)	
Savings	 	4.7	 	(4.5	)	0.2	 	
Time	 	(4.2	)	(9.4	)	(13.6	)	
Total Interest-Bearing Deposits	 	1.1	 	(17.3	)	(16.2	)	
Short-Term Borrowings	 	(0.4	)	(0.6	)	(1.0	)	
Securities Sold Under Agreements to Repurchase	 	(0.9	)	(4.1	)	(5.0	)	
Long-Term Debt	 	(3.5	)	(0.7	)	(4.2	)	
Total Change in Interest Expense	 	(3.7	)	(22.7	)	(26.4	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	8.2	 	$	(17.5	)	$	(9.3	)	

(1)	 	The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume and rate for that category.	
(2)	 	Comprised of other consumer revolving credit, installment, and consumer lease financing.	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Salaries and Benefits (Unaudited)	 	Table 8	
 
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands)	 	2009	 	2009	 	2008	 	2009	 	2008	 	
Salaries	 	$	30,732	 	$	29,845	 	$	30,019	 	$	60,577	 	$	58,922	 	
Incentive Compensation	 	3,407	 	3,292	 	4,122	 	6,699	 	10,389	 	
Share-Based Compensation and Cash Grants for the Purchase of Company Stock	 	604	 	787	 	1,124	 	1,391	 	7,412	 	
Commission Expense	 	1,750	 	2,255	 	1,992	 	4,005	 	3,865	 	
Retirement and Other Benefits	 	3,804	 	4,619	 	3,499	 	8,423	 	8,725	 	
Payroll Taxes	 	2,344	 	3,500	 	2,491	 	5,844	 	5,905	 	
Medical, Dental, and Life Insurance	 	1,236	 	2,664	 	2,470	 	3,900	 	4,969	 	
Separation Expense	 	303	 	66	 	267	 	369	 	1,270	 	
Total Salaries and Benefits	 	$	44,180	 	$	47,028	 	$	45,984	 	$	91,208	 	$	101,457	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Loan and Lease Portfolio Balances (Unaudited)	 	Table 9	
 
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands)	 	2009	 	2009	 	2008	 	2008 (1)	 	2008 (1)	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	932,444	 	$	1,000,640	 	$	1,053,781	 	$	1,077,314	 	$	1,052,319	 	
Commercial Mortgage	 	788,226	 	726,193	 	740,779	 	708,961	 	680,784	 	
Construction	 	140,455	 	153,754	 	153,952	 	153,364	 	168,678	 	
Lease Financing	 	468,030	 	454,822	 	468,140	 	467,279	 	471,443	 	
Total Commercial	 	2,329,155	 	2,335,409	 	2,416,652	 	2,406,918	 	2,373,224	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	2,309,971	 	2,402,061	 	2,461,824	 	2,478,925	 	2,485,558	 	
Home Equity	 	977,632	 	1,016,381	 	1,033,221	 	1,004,437	 	989,683	 	
Automobile	 	309,877	 	343,642	 	369,789	 	395,015	 	413,338	 	
Other (2)	 	223,276	 	241,233	 	248,747	 	254,163	 	256,325	 	
Total Consumer	 	3,820,756	 	4,003,317	 	4,113,581	 	4,132,540	 	4,144,904	 	
Total Loans and Leases	 	$	6,149,911	 	$	6,338,726	 	$	6,530,233	 	$	6,539,458	 	$	6,518,128	 	
 
Air Transportation Credit Exposure (3) (Unaudited)
 
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands)	 	2009	 	2009	 	2008	 	2008	 	2008	 	
Passenger Carriers Based In the United States	 	$	56,774	 	$	56,876	 	$	60,189	 	$	60,260	 	$	60,603	 	
Passenger Carriers Based Outside the United States	 	5,374	 	5,433	 	5,672	 	5,809	 	7,161	 	
Cargo Carriers	 	—	 	13,994	 	13,831	 	13,689	 	13,568	 	
Total Air Transportation Credit Exposure	 	$	62,148	 	$	76,303	 	$	79,692	 	$	79,758	 	$	81,332	 	
 
Deposits (Unaudited)
 
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands)	 	2009	 	2009	 	2008	 	2008	 	2008	 	
Consumer	 	4,747,612	 	4,702,494	 	4,593,248	 	4,460,965	 	4,463,632	 	
Commercial	 	3,828,521	 	3,645,842	 	3,221,668	 	2,835,699	 	3,013,234	 	
Public and Other	 	443,528	 	864,455	 	477,182	 	361,820	 	427,124	 	
Total Deposits	 	$	9,019,661	 	$	9,212,791	 	$	8,292,098	 	$	7,658,484	 	$	7,903,990	 	

(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 leveraged leases and a direct financing lease.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More (Unaudited)	 	Table 10	
 
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands)	 	2009	 	2009	 	2008	 	2008	 	2008	 	
Non-Performing Assets	 	 	 	 	 	 	 	 	 	 	 	
Non-Accrual Loans and Leases (1)	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	10,511	 	$	21,839	 	$	3,869	 	$	574	 	$	1,119	 	
Commercial Mortgage	 	1,219	 	—	 	—	 	—	 	—	 	
Construction	 	6,548	 	5,001	 	5,001	 	—	 	—	 	
Lease Financing	 	956	 	910	 	133	 	149	 	329	 	
Total Commercial	 	19,234	 	27,750	 	9,003	 	723	 	1,448	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	16,265	 	9,230	 	3,904	 	3,749	 	3,784	 	
Home Equity	 	2,567	 	1,620	 	1,614	 	1,162	 	1,189	 	
Other (2)	 	550	 	1,383	 	—	 	—	 	30	 	
Total Consumer	 	19,382	 	12,233	 	5,518	 	4,911	 	5,003	 	
Total Non-Accrual Loans and Leases	 	38,616	 	39,983	 	14,521	 	5,634	 	6,451	 	
Foreclosed Real Estate	 	438	 	346	 	428	 	293	 	229	 	
Total Non-Performing Assets	 	$	39,054	 	$	40,329	 	$	14,949	 	$	5,927	 	$	6,680	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Accruing Loans and Leases Past Due 90 Days or More ( 1)	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	13	 	$	—	 	$	6,785	 	$	—	 	$	—	 	
Lease Financing	 	—	 	257	 	268	 	—	 	—	 	
Total Commercial	 	13	 	257	 	7,053	 	—	 	—	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	4,657	 	4,794	 	4,192	 	3,455	 	2,601	 	
Home Equity	 	2,879	 	1,720	 	1,077	 	296	 	201	 	
Automobile	 	769	 	776	 	743	 	758	 	625	 	
Other (2)	 	1,270	 	1,100	 	1,134	 	926	 	756	 	
Total Consumer	 	9,575	 	8,390	 	7,146	 	5,435	 	4,183	 	
Total Accruing Loans and Leases Past Due 90 Days or More	 	$	9,588	 	$	8,647	 	$	14,199	 	$	5,435	 	$	4,183	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Loans and Leases	 	$	6,149,911	 	$	6,338,726	 	$	6,530,233	 	$	6,539,458	 	$	6,518,128	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	 	0.63	%	0.63	%	0.22	%	0.09	%	0.10	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate	 	0.63	%	0.64	%	0.23	%	0.09	%	0.10	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases	 	0.83	%	1.19	%	0.37	%	0.03	%	0.06	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Foreclosed Real Estate	 	0.52	%	0.31	%	0.14	%	0.13	%	0.13	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases	 	0.79	%	0.77	%	0.45	%	0.17	%	0.17	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Quarter to Quarter Changes in Non-Performing Assets	 	 	 	 	 	 	 	 	 	 	 	
Balance at Beginning of Quarter	 	$	40,329	 	$	14,949	 	$	5,927	 	$	6,680	 	$	6,045	 	
Additions	 	22,459	 	29,164	 	15,464	 	1,355	 	2,900	 	
Reductions	 	 	 	 	 	 	 	 	 	 	 	
Payments	 	(15,593	)	(874	)	(2,440	)	(955	)	(630	)	
Return to Accrual Status	 	(230	)	(768	)	(1,468	)	(756	)	(943	)	
Sales of Foreclosed Real Estate	 	—	 	(82	)	—	 	—	 	—	 	
Charge-offs/Write-downs	 	(7,911	)	(2,060	)	(2,534	)	(397	)	(692	)	
Total Reductions	 	(23,734	)	(3,784	)	(6,442	)	(2,108	)	(2,265	)	
Balance at End of Quarter	 	$	39,054	 	$	40,329	 	$	14,949	 	$	5,927	 	$	6,680	 	

(1)	 	As of June 30, 2009, troubled debt restructurings which were not included in non-accrual loans and accruing loans past due 90 days or more were $2.3 million.	
(2)	 	Comprised of other revolving credit, installment, and lease financing.	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Reserve for Credit Losses (Unaudited)	 	Table 11	
 
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands)	 	2009	 	2009	 	2008	 	2009	 	2008	 	
Balance at Beginning of Period	 	$	139,835	 	$	128,667	 	$	105,167	 	$	128,667	 	$	96,167	 	
Loans and Leases Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(12,249	)	(6,464	)	(1,396	)	(18,713	)	(2,785	)	
Lease Financing	 	(4,473	)	(20	)	(142	)	(4,493	)	(276	)	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	(1,814	)	(827	)	(133	)	(2,641	)	(133	)	
Home Equity	 	(3,303	)	(2,316	)	(473	)	(5,619	)	(1,279	)	
Automobile	 	(2,121	)	(2,982	)	(2,187	)	(5,103	)	(5,102	)	
Other (1)	 	(3,643	)	(3,577	)	(1,954	)	(7,220	)	(4,757	)	
Total Loans and Leases Charged-Off	 	(27,603	)	(16,186	)	(6,285	)	(43,789	)	(14,332	)	
Recoveries on Loans and Leases Previously Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	228	 	542	 	201	 	770	 	1,187	 	
Lease Financing	 	30	 	2	 	2	 	32	 	5	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	126	 	145	 	17	 	271	 	95	 	
Home Equity	 	76	 	96	 	26	 	172	 	47	 	
Automobile	 	735	 	727	 	700	 	1,462	 	1,496	 	
Other (1)	 	718	 	705	 	667	 	1,423	 	1,403	 	
Total Recoveries on Loans and Leases Previously Charged-Off	 	1,913	 	2,217	 	1,613	 	4,130	 	4,233	 	
Net Loans and Leases Charged-Off	 	(25,690	)	(13,969	)	(4,672	)	(39,659	)	(10,099	)	
Provision for Credit Losses	 	28,690	 	24,887	 	7,172	 	53,577	 	21,599	 	
Provision for Unfunded Commitments	 	—	 	250	 	—	 	250	 	—	 	
Balance at End of Period (2)	 	$	142,835	 	$	139,835	 	$	107,667	 	$	142,835	 	$	107,667	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Components	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	137,416	 	$	134,416	 	$	102,498	 	$	137,416	 	$	102,498	 	
Reserve for Unfunded Commitments	 	5,419	 	5,419	 	5,169	 	5,419	 	5,169	 	
Total Reserve for Credit Losses	 	$	142,835	 	$	139,835	 	$	107,667	 	$	142,835	 	$	107,667	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases Outstanding	 	$	6,258,403	 	$	6,446,513	 	$	6,531,587	 	$	6,351,938	 	$	6,559,753	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)	 	1.65	%	0.88	%	0.29	%	1.26	%	0.31	%	
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding	 	2.23	%	2.12	%	1.57	%	2.23	%	1.57	%	

(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 (Unaudited).	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Business Segments Selected Financial Information (Unaudited)	 	Table 12a	
 
 	 	Retail	 	Commercial	 	Investment	 	Treasury	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	and Other	 	Total	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended June 30, 2009	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	53,631	 	$	43,376	 	$	4,326	 	$	1,518	 	$	102,851	 	
Provision for Credit Losses	 	11,465	 	16,480	 	746	 	(1	)	28,690	 	
Net Interest Income After Provision for Credit Losses	 	42,166	 	26,896	 	3,580	 	1,519	 	74,161	 	
Noninterest Income	 	25,169	 	16,774	 	14,615	 	3,274	 	59,832	 	
Noninterest Expense	 	(42,587	)	(29,119	)	(15,797	)	(2,081	)	(89,584	)	
Income Before Provision for Income Taxes	 	24,748	 	14,551	 	2,398	 	2,712	 	44,409	 	
Provision for Income Taxes	 	(9,170	)	(5,205	)	(887	)	1,859	 	(13,403	)	
Net Income	 	$	15,578	 	$	9,346	 	$	1,511	 	$	4,571	 	$	31,006	 	
Total Assets as of June 30, 2009	 	$	3,299,113	 	$	2,939,637	 	$	267,546	 	$	5,688,399	 	$	12,194,695	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended June 30, 2008 (1)	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	59,529	 	$	43,285	 	$	3,938	 	$	416	 	$	107,168	 	
Provision for Credit Losses	 	2,571	 	4,652	 	(1	)	(50	)	7,172	 	
Net Interest Income After Provision for Credit Losses	 	56,958	 	38,633	 	3,939	 	466	 	99,996	 	
Noninterest Income	 	23,644	 	13,623	 	19,019	 	4,253	 	60,539	 	
Noninterest Expense	 	(40,380	)	(26,195	)	(16,363	)	(924	)	(83,862	)	
Income Before Provision for Income Taxes	 	40,222	 	26,061	 	6,595	 	3,795	 	76,673	 	
Provision for Income Taxes	 	(14,882	)	(9,655	)	(2,440	)	(1,414	)	(28,391	)	
Net Income	 	$	25,340	 	$	16,406	 	$	4,155	 	$	2,381	 	$	48,282	 	
Total Assets as of June 30, 2008 (1)	 	$	3,638,301	 	$	3,008,887	 	$	242,443	 	$	3,481,518	 	$	10,371,149	 	

(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	 	Treasury	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	and Other	 	Total	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Six Months Ended June 30, 2009	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income (Loss)	 	$	107,021	 	$	84,966	 	$	8,318	 	$	(392	)	$	199,913	 	
Provision for Credit Losses	 	25,981	 	26,291	 	1,550	 	(245	)	53,577	 	
Net Interest Income (Loss) After Provision for Credit Losses	 	81,040	 	58,675	 	6,768	 	(147	)	146,336	 	
Noninterest Income	 	53,444	 	40,891	 	29,060	 	6,802	 	130,197	 	
Noninterest Expense	 	(84,895	)	(56,656	)	(32,357	)	(3,609	)	(177,517	)	
Income Before Provision for Income Taxes	 	49,589	 	42,910	 	3,471	 	3,046	 	99,016	 	
Provision for Income Taxes	 	(18,360	)	(15,676	)	(1,284	)	3,350	 	(31,970	)	
Net Income	 	$	31,229	 	$	27,234	 	$	2,187	 	$	6,396	 	$	67,046	 	
Total Assets as of June 30, 2009	 	$	3,299,113	 	$	2,939,637	 	$	267,546	 	$	5,688,399	 	$	12,194,695	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Six Months Ended June 30, 2008 (1)	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income (Loss)	 	$	117,922	 	$	86,144	 	$	7,808	 	$	(2,526	)	$	209,348	 	
Provision for Credit Losses	 	10,523	 	11,878	 	(1	)	(801	)	21,599	 	
Net Interest Income (Loss) After Provision for Credit Losses	 	107,399	 	74,266	 	7,809	 	(1,725	)	187,749	 	
Noninterest Income	 	48,491	 	39,570	 	37,280	 	21,323	 	146,664	 	
Noninterest Expense	 	(80,997	)	(53,721	)	(33,226	)	(9,350	)	(177,294	)	
Income Before Provision for Income Taxes	 	74,893	 	60,115	 	11,863	 	10,248	 	157,119	 	
Provision for Income Taxes	 	(27,710	)	(22,295	)	(4,389	)	2,772	 	(51,622	)	
Net Income	 	$	47,183	 	$	37,820	 	$	7,474	 	$	13,020	 	$	105,497	 	
Total Assets as of June 30, 2008 (1)	 	$	3,638,301	 	$	3,008,887	 	$	242,443	 	$	3,481,518	 	$	10,371,149	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Selected Quarterly Financial Data (Unaudited)	 	Table 13	
 
 	 	Three Months Ended	 	
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands, except per share amounts)	 	2009	 	2009	 	2008 (1)	 	2008 (1)	 	2008 (1)	 	
Quarterly Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	83,342	 	$	86,592	 	$	95,598	 	$	92,744	 	$	97,959	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	—	 	594	 	1,152	 	1,174	 	1,209	 	
Available-for-Sale	 	38,155	 	32,301	 	34,352	 	35,152	 	35,321	 	
Held-to-Maturity	 	2,369	 	2,567	 	2,735	 	2,870	 	3,033	 	
Deposits	 	5	 	10	 	25	 	33	 	204	 	
Funds Sold	 	526	 	577	 	48	 	141	 	420	 	
Other	 	276	 	276	 	276	 	490	 	489	 	
Total Interest Income	 	124,673	 	122,917	 	134,186	 	132,604	 	138,635	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	14,481	 	17,025	 	16,960	 	17,736	 	20,238	 	
Securities Sold Under Agreements to Repurchase	 	6,477	 	6,652	 	7,984	 	7,675	 	7,488	 	
Funds Purchased	 	5	 	5	 	175	 	507	 	270	 	
Short-Term Borrowings	 	—	 	—	 	103	 	13	 	12	 	
Long-Term Debt	 	859	 	2,173	 	3,110	 	3,098	 	3,459	 	
Total Interest Expense	 	21,822	 	25,855	 	28,332	 	29,029	 	31,467	 	
Net Interest Income	 	102,851	 	97,062	 	105,854	 	103,575	 	107,168	 	
Provision for Credit Losses	 	28,690	 	24,887	 	18,558	 	20,358	 	7,172	 	
Net Interest Income After Provision for Credit Losses	 	74,161	 	72,175	 	87,296	 	83,217	 	99,996	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	11,881	 	11,632	 	12,275	 	14,193	 	15,460	 	
Mortgage Banking	 	5,443	 	8,678	 	508	 	621	 	2,738	 	
Service Charges on Deposit Accounts	 	12,910	 	13,386	 	13,306	 	13,045	 	12,411	 	
Fees, Exchange, and Other Service Charges	 	15,410	 	14,976	 	14,897	 	15,604	 	16,103	 	
Investment Securities Gains, Net	 	12	 	56	 	86	 	159	 	157	 	
Insurance	 	4,744	 	5,641	 	5,953	 	5,902	 	5,590	 	
Other	 	9,432	 	15,996	 	7,438	 	7,462	 	8,080	 	
Total Noninterest Income	 	59,832	 	70,365	 	54,463	 	56,986	 	60,539	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	44,180	 	47,028	 	43,737	 	46,764	 	45,984	 	
Net Occupancy	 	10,008	 	10,328	 	11,548	 	11,795	 	11,343	 	
Net Equipment	 	4,502	 	4,316	 	4,573	 	4,775	 	4,474	 	
Professional Fees	 	4,005	 	2,549	 	3,040	 	3,270	 	2,588	 	
FDIC Insurance	 	8,987	 	1,814	 	693	 	321	 	247	 	
Other	 	17,902	 	21,898	 	19,099	 	19,865	 	19,226	 	
Total Noninterest Expense	 	89,584	 	87,933	 	82,690	 	86,790	 	83,862	 	
Income Before Provision for Income Taxes	 	44,409	 	54,607	 	59,069	 	53,413	 	76,673	 	
Provision for Income Taxes	 	13,403	 	18,567	 	19,762	 	6,004	 	28,391	 	
Net Income	 	$	31,006	 	$	36,040	 	$	39,307	 	$	47,409	 	$	48,282	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Basic Earnings Per Share	 	$	0.65	 	$	0.76	 	$	0.83	 	$	1.00	 	$	1.01	 	
Diluted Earnings Per Share	 	$	0.65	 	$	0.75	 	$	0.82	 	$	0.99	 	$	1.00	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	$	6,149,911	 	$	6,338,726	 	$	6,530,233	 	$	6,539,458	 	$	6,518,128	 	
Total Assets	 	12,194,695	 	11,448,128	 	10,763,475	 	10,335,047	 	10,371,149	 	
Total Deposits	 	9,019,661	 	9,212,791	 	8,292,098	 	7,658,484	 	7,903,990	 	
Total Shareholders’ Equity	 	845,885	 	833,935	 	790,704	 	780,020	 	767,558	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.06	%	1.32	%	1.52	%	1.82	%	1.85	%	
Return on Average Shareholders’ Equity	 	14.49	 	17.86	 	19.56	 	24.17	 	24.82	 	
Efficiency Ratio (2)	 	55.07	 	52.52	 	51.58	 	54.05	 	50.01	 	
Net Interest Margin (3)	 	3.73	 	3.76	 	4.43	 	4.33	 	4.41	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Hawaii Economic Trends (Unaudited)	 	Table 14	
 
 	 	Five Months Ended	 	Year Ended	 	
 	 	May 31,	 	December 31,	 	
(percentage change)	 	2009	 	2008	 	2007	 	
Hawaii Economic Trends	 	 	 	 	 	 	 	
State General Fund Revenues (1)	 	(9.9	)%	(1.5	)%	3.6	%	
General Excise and Use Tax Revenue (2)	 	(13.9	)	(2.0	)	6.8	 	
Jobs (1)	 	(3.1	)	(0.7	)	1.0	 	
 
 	 	June 30,	 	December 31,	 	
(annual percentage, except June)	 	2009	 	2008	 	2007	 	
Unemployment (3)	 	 	 	 	 	 	 	
Statewide, seasonally adjusted	 	7.4	%	4.0	%	2.6	%	
 	 	 	 	 	 	 	 	
Oahu	 	6.9	 	3.5	 	2.5	 	
Island of Hawaii	 	11.5	 	5.5	 	3.3	 	
Maui	 	9.7	 	4.5	 	2.8	 	
Kauai	 	11.1	 	4.4	 	2.5	 	
 
 	 	June 30,	 	December 31,	 	
(percentage change, except months of inventory)	 	2009	 	2008	 	2007	 	
Housing Trends (Single Family Oahu) (4)	 	 	 	 	 	 	 	
Median Home Price	 	(9.0	)%	(3.0	)%	2.1	%	
Home Sales Volume (units)	 	9.5	 	(24.4	)	(10.2	)	
Months of Inventory	 	7.6	 	8.0	 	6.0	 	
 
 	 	May 31,	 	April 30,	 	March 31,	 	February 28,	 	January 31,	 	December 31,	 	
(in thousands)	 	2009	 	2009	 	2009	 	2009	 	2009	 	2008	 	
Tourism (1)	 	 	 	 	 	 	 	 	 	 	 	 	 	
Monthly Visitor Arrivals, seasonally adjusted	 	554.5	 	555.1	 	509.6	 	549.4	 	540.0	 	517.4	 	
Percentage change from previous month	 	(0.1	)%	8.9	%	(7.2	)%	1.7	%	4.4	%	(4.1	)%	

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