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 25, 2011	
 
BANK OF HAWAII CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware	 	1-6887	 	99-0148992	
(State of Incorporation)	 	(Commission	 	(IRS Employer	
 	 	File Number)	 	Identification No.)	
 
130 Merchant Street, Honolulu, Hawaii	 	96813	
(Address of principal executive offices)	 	(Zip Code)	
 
(Registrant’s telephone number, including area code)	 	(888) 643-3888	
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o           Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o           Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o           Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o           Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

 

 
Item 2.02.            Results of Operations and Financial Condition.
 
On July 25, 2011, Bank of Hawaii Corporation (the “Company”) announced its results of operations for the quarter ended June 30, 2011.  The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and incorporated herein by reference.
 
Item 9.01.            Financial Statements and Exhibits.
 
(d)          Exhibits
 
Exhibit No.	 	 	
 	 	 	
99.1	 	July 25, 2011 Press Release: Bank of Hawaii Corporation Second Quarter 2011 Financial Results. Any internet addresses provided in this release are for informational purposes only and are not intended to be hyperlinks. Furnished herewith.	

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

Date:	July 25, 2011	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 2011 Financial Results
 
·                 Diluted Earnings Per Share $0.74
·                 Net Income $35.1 Million
·                 Board of Directors Declares Dividend of $0.45 Per Share
·                 Board of Directors Increases Share Repurchase Authorization by $120.0 Million
 
FOR IMMEDIATE RELEASE
 
HONOLULU, HI (July 25, 2011) — Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.74 for the second quarter of 2011, down from $0.88 in the previous quarter.  Net income for the second quarter of 2011 was $35.1 million, down $7.2 million compared to net income of $42.4 million in the first quarter of 2011 primarily due to the previously announced tentative settlement agreement regarding the Company’s overdraft practices.
 
Loan and lease balances increased to $5.4 billion due to growth in both commercial and consumer loan demand.  Deposit growth remained strong during the second quarter, increasing to $10.0 billion at June 30, 2011.  The allowance for loan and lease losses decreased by $2.4 million to $145.0 million due to the improving Hawaii economy and represents 2.71 percent of outstanding loans and leases.
 
“Bank of Hawaii’s operating results were solid in the second quarter of 2011, excluding the one-time impact of a legal settlement,” said Peter S. Ho, Chairman, President and CEO.  “Loan growth was modestly higher both on an average and period end basis.  Expenses were controlled.  Credit quality remained stable and continued to improve from prior year levels.  The Hawaii economy remains steady with improved unemployment statistics and continued growth in visitor arrivals and spending.  Japan arrivals, as expected, have been muted by the effects of the March earthquake and resulting tsunami.  The downturn in arrivals from Japan however has been less severe than anticipated and has been more than offset by visitors from other market segments both domestic and international.”
 
The return on average assets for the second quarter of 2011 was 1.09 percent, down from 1.32 percent in the first quarter.  The return on average equity for the second quarter of 2011 was 13.86 percent compared to 16.86 percent for the previous quarter.  The efficiency ratio for the second quarter of 2011 was 63.81 percent compared to 56.04 percent in the previous quarter.
 
- more -

 

 
Bank of Hawaii Corporation Second Quarter 2011 Financial Results
 
For the six months ended June 30, 2011, net income was $77.5 million, down from net income of $99.3 million for the same period last year.  Net income in the first half of 2011 included net gains of $6.1 million on the sales of investment securities compared with net gains of $35.0 million for the first six months of 2010.  Diluted earnings per share were $1.62 for the first half of 2011, down from diluted earnings per share of $2.05 for the first half of 2010.  The year-to-date return on average assets was 1.21 percent, down from 1.60 percent for the same six months in 2010.  The year-to-date return on average equity was 15.36 percent, down from 20.73 percent for the six months ended June 30, 2010.  The efficiency ratio for the first half of 2011 was 59.84 percent compared with 47.59 percent in the same period last year.
 
Financial Highlights
 
Net interest income, on a taxable equivalent basis, for the second quarter of 2011 was $97.9 million, down $2.2 million from net interest income of $100.1 million in the first quarter of 2011 and down $6.3 million from net interest income of $104.2 million in the second quarter of 2010.  Net interest income for the first half of 2011 was $198.0, down $14.1 million compared with net interest income of $212.1 million for the first half of 2010.  Analyses of the changes in net interest income are included in Tables 7a, 7b, and 7c.
 
The net interest margin was 3.16 percent for the second quarter of 2011, a decrease of 8 basis points from the net interest margin of 3.24 percent in the first quarter of 2011 and a 35 basis point decrease from the net interest margin of 3.51 percent in the second quarter of 2010.  The net interest margin for the six months ended June 30, 2011 was 3.20 percent compared with 3.61 percent for the same period last year.  The decrease in the net interest margin was largely the result of lower interest rates and the Company’s strategy to maintain strong liquidity and reduce risk.
 
During the second quarter of 2011 the provision for credit losses totaled $3.6 million, or $2.4 million less than net charge-offs, and reflects the improving Hawaii economy and asset quality of the loan portfolio. The provision for credit losses equaled net charge-offs of $4.7 million during the first quarter of 2011.  During the second quarter of 2010 the provision for credit losses of $15.9 million exceeded net charge-offs of $14.9 million.
 
Noninterest income was $49.5 million for the second quarter of 2011, a decrease of $4.5 million compared to noninterest income of $53.9 million in the first quarter of 2011, and a decrease of $19.4 million compared to noninterest income of $68.9 million in the second quarter of 2010.  Noninterest income in the first quarter of 2011 included net gains of $6.1 million on the sales of investment securities.  Noninterest income in the second quarter of 2010 included $15.0 million in net gains on the sales of investment securities.  Excluding the gains on securities sales, the decrease compared with the previous year was largely due to a reduction in overdraft fees, which were $5.0 million lower than the second quarter of 2010.  Noninterest income for the first half of 2011 was $103.4 million compared with noninterest income of $140.7 million for the first half of 2010.
 
Noninterest expense was $93.8 million in the second quarter of 2011, up $7.7 million from noninterest expense of $86.1 million in the first quarter of 2011, and up $7.9 million from noninterest expense of $85.9 million in the same quarter last year.  Noninterest expense in the second quarter of 2011 included the previously mentioned litigation settlement of $9.0 million and $2.0 million for employee stock incentives.  Noninterest expense in the second quarter of 2010 included $3.3 million for employee incentives.  Noninterest expense for the first half of 2011 was $179.9 million compared with noninterest expense of $167.6 million for the first half of 2010.  An analysis of salary and benefit expenses is included in Table 8.
 
2

 
Bank of Hawaii Corporation Second Quarter 2011 Financial Results
 
The effective tax rate for the second quarter of 2011 was 29.12 percent compared to 32.60 percent in the previous quarter and 34.37 percent during the same quarter last year.  The lower effective tax rate for the second quarter of 2011 compared to the same period in 2010 was primarily due to a benefit recorded in the second quarter of 2011 for the release of reserves due to the closing of Internal Revenue Service audits for certain prior years.  The effective tax rate for the first half of 2011 was 31.06 percent compared with 32.89 percent for the same period last year.
 
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
 
The Company’s overall credit quality continues to improve and reflects the recovering Hawaii economy.  Non-performing assets decreased to $34.2 million at June 30, 2011, compared with $34.6 million at March 31, 2011 and $43.2 million at June 30, 2010.  As a percentage of total loans and leases, including loans held for sale and foreclosed real estate, non-performing assets were 0.64 percent at June 30, 2011, down from 0.65 percent as of March 31, 2011, and down from 0.79 percent at June 30, 2010.
 
Accruing consumer loans and leases past due 90 days or more were $7.8 million at June 30, 2011, up from $5.6 million at March 31, 2011, and down from $12.9 million at June 30, 2010.  The increase compared with the previous quarter is largely due to the addition of two residential first mortgage loans.  There were no accruing commercial loans or leases past due 90 days or more at June 30, 2011.  Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $28.2 million at June 30, 2011 and primarily comprised of loans with lowered monthly payments to accommodate the borrowers’ financial needs for a period of time.  More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 10.
 
Net charge-offs during the second quarter of 2011 were $6.0 million or 0.45 percent annualized of total average loans and leases outstanding.  Charge-offs of $9.0 million during the quarter were partially offset by recoveries of $3.0 million.  Net charge-offs in the first quarter of 2011 were $4.7 million, or 0.36 percent annualized of total average loans and leases outstanding, and were comprised of charge-offs of $7.4 million and recoveries of $2.7 million.  Net charge-offs during the second quarter of 2010 were $14.9 million, or 1.09 percent annualized of total average loans and leases outstanding, and were comprised of charge-offs of $17.1 million and recoveries of $2.2 million.  Net charge-offs during the first six months of 2011 were $10.7 million or 0.40 percent annualized of total average loans and leases outstanding compared with $33.0 million or 1.19 percent for the first half of 2010.  Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 11.
 
The allowance for loan and lease losses was $145.0 million at June 30, 2011, down $2.4 million from the allowance for loan and lease losses of $147.4 at March 31, 2011 and at June 30, 2010.  The reduction is a reflection of the gradually improving Hawaii economy and its impact on the mortgage-related consumer lending and commercial portfolios.  The ratio of the allowance for loan and lease losses to total loans and leases was 2.71 percent at June 30, 2011.  The reserve for unfunded commitments at June 30, 2011 was unchanged at $5.4 million.
 
3

 
Bank of Hawaii Corporation Second Quarter 2011 Financial Results
 
Other Financial Highlights
 
Total assets were $13.2 billion at June 30, 2011, up from total assets of $13.0 billion at March 31, 2011, and up from total assets of $12.9 billion at June 30, 2010.  Average total assets were $13.0 billion during the second quarter of 2011, up slightly compared to average total assets in the previous quarter, and up from average assets of $12.6 billion during the second quarter last year.
 
As of June 30, 2011, the total carrying value of the investment securities portfolio was $6.6 billion, up from $6.5 billion at March 31, 2011, and up from $6.1 billion at June 30, 2010.  The available for sale securities portfolio increased to $4.1 billion and securities held to maturity increased to $2.5 billion at June 30, 2011.
 
Total loans and leases were $5.4 billion at June 30, 2011, up $24.5 million or 0.5 percent from March 31, 2011 as growth in commercial lending and residential mortgages offset declines in home equity, auto lending, and other consumer loans.  Average total loans and leases were $5.3 billion during the second quarter of 2011, up $14.3 million from the previous quarter, and down from average loans and leases of $5.5 billion during the second quarter last year.
 
Total deposits increased to $10.0 billion at June 30, 2011, up $66.6 million from March 31, 2011, and up $654.4 million from total deposits of $9.3 billion at June 30, 2010.  Average total deposits were $9.8 billion during the second quarter of 2011, down slightly from the previous quarter, and up from $9.4 billion during the second quarter last year.
 
During the second quarter of 2011, the Company repurchased 636.4 thousand shares of common stock at a total cost of $30.0 million under its share repurchase program.  The average cost was $47.15 per share repurchased.  From the beginning of the share repurchase program initiated during July 2001 through June 30, 2011, the Company has repurchased 47.1 million shares and returned $1.69 billion to shareholders at an average cost of $35.82 per share.
 
The Company’s Board of Directors has increased the authorization under the share repurchase program by an additional $120.0 million.  This new authorization, combined with the previously announced authorizations of $1.70 billion, brings the total repurchase authority to $1.82 billion.  From July 1 through July 22, 2011, the Company repurchased an additional 152.5 thousand shares of common stock at an average cost of $46.08 per share repurchased.  Remaining buyback authority under the share repurchase program was $126.1 million at July 22, 2011.
 
Total shareholders’ equity was $1.00 billion at June 30, 2011, compared to $996.2 million at March 31, 2011 and $1.01 billion at June 30, 2010.  The ratio of tangible common equity to risk-weighted assets was 18.95 percent at June 30, 2011, compared with 19.04 percent at March 31, 2011 and 18.57 percent at June 30, 2010.  The Tier 1 leverage ratio at June 30, 2011 was 7.07 percent, down from 7.16 percent at March 31, 2011 and down from 7.09 percent at June 30, 2010.
 
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, 2011 to shareholders of record at the close of business on August 31, 2011.
 
4

 
Bank of Hawaii Corporation Second Quarter 2011 Financial Results
 
Hawaii Economy
 
Hawaii’s economy continued to improve during the second quarter of 2011 due to increasing visitor arrivals and spending.  For the first five months of 2011, visitor arrivals increased 6.7% and visitor spending rose 15.3% compared to the same period in 2010.  As expected, Japanese visitor arrivals and spending decreased following the March 2011 natural disasters in Japan.  However, this was more than offset by continued strong visitor arrivals and spending from the U.S. Mainland and Canada.  Hotel occupancy and revenue per available room have also continued to show signs of improvement.  Overall, state job growth has begun to stabilize as the statewide seasonally-adjusted unemployment rate declined to 6.0% at the end of June 2011.  The volume and median price for single-family home sales on Oahu was lower for the first six months of 2011 compared to the same period in 2010.  The housing market on Oahu remains stable, with some continued softness on the neighbor islands.
 
Conference Call Information
 
The Company will review its second quarter 2011 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.  Conference call participants within the United States should dial 800-299-8538.  International participants should dial 617-786-2902.  Use the pass code “Bank of Hawaii” to access the call.  A replay will be available for one week beginning Monday, July 25, 2011 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the pass code 97148859 when prompted.  A replay will also be available via the Investor Relations link 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, 2010, which was filed with the U.S. Securities and Exchange Commission.  We have not committed to update forward-looking statements to reflect later events or circumstances.
 
Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers and governments in Hawaii, American Samoa and the West Pacific.  The Company’s principal subsidiary, Bank of Hawaii, was founded in 1897 and is the largest independent financial institution in Hawaii.  For more information about Bank of Hawaii Corporation, see the Company’s web site, www.boh.com.
 
# # # #
 
5

 
Bank of Hawaii Corporation and Subsidiaries	 	
Financial Highlights	Table 1a	
 
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands, except per share amounts)	 	2011	 	2011	 	2010	 	2011	 	2010	 	
For the Period:	 	 	 	 	 	 	 	 	 	 	 	
Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	97,499	 	$	99,697	 	$	103,928	 	$	197,196	 	$	211,581	 	
Provision for Credit Losses	 	3,600	 	4,691	 	15,939	 	8,291	 	36,650	 	
Total Noninterest Income	 	49,463	 	53,922	 	68,874	 	103,385	 	140,656	 	
Total Noninterest Expense	 	93,774	 	86,082	 	85,918	 	179,856	 	167,624	 	
Net Income	 	35,148	 	42,360	 	46,564	 	77,508	 	99,300	 	
Basic Earnings Per Share	 	0.74	 	0.89	 	0.97	 	1.63	 	2.07	 	
Diluted Earnings Per Share	 	0.74	 	0.88	 	0.96	 	1.62	 	2.05	 	
Dividends Declared Per Share	 	0.45	 	0.45	 	0.45	 	0.90	 	0.90	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.09	%	1.32	%	1.48	%	1.21	%	1.60	%	
Return on Average Shareholders’ Equity	 	13.86	 	16.86	 	19.01	 	15.36	 	20.73	 	
Efficiency Ratio1	 	63.81	 	56.04	 	49.72	 	59.84	 	47.59	 	
Operating Leverage2	 	(21.25	)	14.42	 	(11.10	)	(34.61	)	20.98	 	
Net Interest Margin3	 	3.16	 	3.24	 	3.51	 	3.20	 	3.61	 	
Dividend Payout Ratio4	 	60.81	 	50.56	 	46.39	 	55.21	 	43.48	 	
Average Shareholders’ Equity to Average Assets	 	7.84	 	7.86	 	7.79	 	7.85	 	7.73	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Balances	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases	 	$	5,326,123	 	$	5,311,781	 	$	5,522,423	 	$	5,318,993	 	$	5,604,218	 	
Average Assets	 	12,967,232	 	12,965,633	 	12,603,233	 	12,966,437	 	12,491,132	 	
Average Deposits	 	9,790,349	 	9,873,727	 	9,387,621	 	9,831,809	 	9,389,110	 	
Average Shareholders’ Equity	 	1,016,813	 	1,018,788	 	982,233	 	1,017,795	 	965,745	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Market Price Per Share of Common Stock	 	 	 	 	 	 	 	 	 	 	 	
Closing	 	$	46.52	 	$	47.82	 	$	48.35	 	$	46.52	 	$	48.35	 	
High	 	49.26	 	49.23	 	54.10	 	49.26	 	54.10	 	
Low	 	44.90	 	44.32	 	45.00	 	44.32	 	41.60	 	
 
 	 	June 30,	 	March 31,	 	December 31,	 	June 30,	 	
 	 	2011	 	2011	 	2010	 	2010	 	
As of Period End:	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	$	5,351,473	 	$	5,326,929	 	$	5,335,792	 	$	5,440,911	 	
Total Assets	 	13,161,204	 	12,962,304	 	13,126,787	 	12,855,845	 	
Total Deposits	 	9,979,034	 	9,912,391	 	9,888,995	 	9,324,659	 	
Long-Term Debt	 	30,714	 	32,643	 	32,652	 	40,300	 	
Total Shareholders’ Equity	 	1,003,450	 	996,225	 	1,011,133	 	1,013,011	 	
 	 	 	 	 	 	 	 	 	 	
Asset Quality	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	144,976	 	$	147,358	 	$	147,358	 	$	147,358	 	
Non-Performing Assets5	 	34,156	 	34,592	 	37,786	 	43,241	 	
 	 	 	 	 	 	 	 	 	 	
Financial Ratios	 	 	 	 	 	 	 	 	 	
Allowance to Loans and Leases Outstanding	 	2.71	%	2.77	%	2.76	%	2.71	%	
Tier 1 Capital Ratio	 	17.96	 	18.41	 	18.28	 	16.92	 	
Total Capital Ratio	 	19.23	 	19.68	 	19.55	 	18.19	 	
Tier 1 Leverage Ratio	 	7.07	 	7.16	 	7.15	 	7.09	 	
Total Shareholders’ Equity to Total Assets	 	7.62	 	7.69	 	7.70	 	7.88	 	
Tangible Common Equity to Tangible Assets6	 	7.40	 	7.46	 	7.48	 	7.65	 	
Tangible Common Equity to Risk-Weighted Assets6	 	18.95	 	19.04	 	19.29	 	18.57	 	
 	 	 	 	 	 	 	 	 	 	
Non-Financial Data	 	 	 	 	 	 	 	 	 	
Full-Time Equivalent Employees	 	2,405	 	2,381	 	2,399	 	2,427	 	
Branches and Offices	 	82	 	82	 	82	 	83	 	
ATMs	 	508	 	506	 	502	 	487	 	

1                  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
2                  Operating leverage is defined as the percentage change in income before the provision for credit losses and the provision for income taxes.  Measures are presented on a linked quarter basis.
3                  Net interest margin is defined as net interest income, on a taxable equivalent basis, as a percentage of average earning assets.
4                  Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.
5                  Excluded from non-performing assets are contractually binding non-accrual loans held for sale of $7.5 million as of March 31, 2011.
6                  Tangible common equity, a non-GAAP financial measure, is defined by the Company as shareholders’ equity minus goodwill and intangible assets.  Intangible assets are included as a component of other assets in the Consolidated Statements of Condition.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Reconciliation of Non-GAAP Financial Measures	 	Table 1b	
 
 	 	June 30,	 	March 31,	 	December 31,	 	June 30,	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	2010	 	
 	 	 	 	 	 	 	 	 	 	
Total Shareholders’ Equity	 	$	1,003,450	 	$	996,225	 	$	1,011,133	 	$	1,013,011	 	
Less:	Goodwill	 	31,517	 	31,517	 	31,517	 	31,517	 	
 	Intangible Assets	 	108	 	131	 	154	 	196	 	
Tangible Common Equity	 	$	971,825	 	$	964,577	 	$	979,462	 	$	981,298	 	
 	 	 	 	 	 	 	 	 	 	
Total Assets	 	$	13,161,204	 	$	12,962,304	 	$	13,126,787	 	$	12,855,845	 	
Less:	Goodwill	 	31,517	 	31,517	 	31,517	 	31,517	 	
 	Intangible Assets	 	108	 	131	 	154	 	196	 	
Tangible Assets	 	$	13,129,579	 	$	12,930,656	 	$	13,095,116	 	$	12,824,132	 	
 	 	 	 	 	 	 	 	 	 	
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements	 	$	5,128,368	 	$	5,065,817	 	$	5,076,909	 	$	5,283,996	 	
 	 	 	 	 	 	 	 	 	 	
Total Shareholders’ Equity to Total Assets	 	7.62	%	7.69	%	7.70	%	7.88	%	
Tangible Common Equity to Tangible Assets (Non-GAAP)	 	7.40	%	7.46	%	7.48	%	7.65	%	
 	 	 	 	 	 	 	 	 	 	
Tier 1 Capital Ratio	 	17.96	%	18.41	%	18.28	%	16.92	%	
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)	 	18.95	%	19.04	%	19.29	%	18.57	%	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Net Significant Income (Expense) Items	 	Table 2	
 
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	2011	 	2010	 	
Cash Basis Interest Recoveries	 	$	—	 	$	—	 	$	—	 	$	—	 	$	2,832	 	
Investment Securities Gains, Net	 	—	 	6,084	 	14,951	 	6,084	 	34,972	 	
Gain on Disposal of Leased Equipment	 	—	 	—	 	1,189	 	—	 	1,189	 	
Decrease (Increase) in Allowance for Loan and Lease Losses	 	2,382	 	—	 	(1,000	)	2,382	 	(3,700	)	
Cash Grants for the Purchase of Company Stock	 	—	 	—	 	(3,250	)	—	 	(3,250	)	
Legal Settlement Related to OD Claims	 	(9,000	)	—	 	—	 	(9,000	)	—	 	
Significant Income (Expense) Items Before the Provision (Benefit) for Income Taxes	 	(6,618	)	6,084	 	11,890	 	(534	)	32,043	 	
Income Taxes Impact Related to Lease Transactions	 	—	 	—	 	462	 	—	 	462	 	
Income Tax Impact	 	(2,316	)	2,129	 	3,745	 	(187	)	10,799	 	
Net Significant Income (Expense) Items	 	$	(4,302	)	$	3,955	 	$	7,683	 	$	(347	)	$	20,782	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Income	 	Table 3	
 
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands, except per share amounts)	 	2011	 	2011	 	2010	 	2011	 	2010	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	65,542	 	$	66,593	 	$	71,997	 	$	132,135	 	$	149,268	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	23,490	 	37,669	 	44,989	 	61,159	 	88,830	 	
Held-to-Maturity	 	20,553	 	7,633	 	1,700	 	28,186	 	3,563	 	
Deposits	 	2	 	(2	)	3	 	—	 	16	 	
Funds Sold	 	297	 	251	 	396	 	548	 	705	 	
Other	 	279	 	279	 	277	 	558	 	554	 	
Total Interest Income	 	110,163	 	112,423	 	119,362	 	222,586	 	242,936	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	4,792	 	5,232	 	7,930	 	10,024	 	16,237	 	
Securities Sold Under Agreements to Repurchase	 	7,338	 	7,041	 	6,472	 	14,379	 	12,901	 	
Funds Purchased	 	5	 	6	 	6	 	11	 	13	 	
Long-Term Debt	 	529	 	447	 	1,026	 	976	 	2,204	 	
Total Interest Expense	 	12,664	 	12,726	 	15,434	 	25,390	 	31,355	 	
Net Interest Income	 	97,499	 	99,697	 	103,928	 	197,196	 	211,581	 	
Provision for Credit Losses	 	3,600	 	4,691	 	15,939	 	8,291	 	36,650	 	
Net Interest Income After Provision for Credit Losses	 	93,899	 	95,006	 	87,989	 	188,905	 	174,931	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	11,427	 	11,806	 	11,457	 	23,233	 	23,165	 	
Mortgage Banking	 	2,661	 	3,122	 	3,752	 	5,783	 	7,216	 	
Service Charges on Deposit Accounts	 	9,375	 	9,932	 	14,856	 	19,307	 	28,670	 	
Fees, Exchange, and Other Service Charges	 	16,662	 	14,945	 	15,806	 	31,607	 	30,310	 	
Investment Securities Gains, Net	 	—	 	6,084	 	14,951	 	6,084	 	34,972	 	
Insurance	 	3,210	 	2,771	 	2,291	 	5,981	 	5,006	 	
Other	 	6,128	 	5,262	 	5,761	 	11,390	 	11,317	 	
Total Noninterest Income	 	49,463	 	53,922	 	68,874	 	103,385	 	140,656	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	46,800	 	46,782	 	47,500	 	93,582	 	92,064	 	
Net Occupancy	 	10,476	 	10,327	 	10,154	 	20,803	 	20,298	 	
Net Equipment	 	4,741	 	4,698	 	4,366	 	9,439	 	8,924	 	
Professional Fees	 	2,294	 	2,158	 	2,091	 	4,452	 	4,083	 	
FDIC Insurance	 	2,010	 	3,244	 	3,107	 	5,254	 	6,207	 	
Other	 	27,453	 	18,873	 	18,700	 	46,326	 	36,048	 	
Total Noninterest Expense	 	93,774	 	86,082	 	85,918	 	179,856	 	167,624	 	
Income Before Provision for Income Taxes	 	49,588	 	62,846	 	70,945	 	112,434	 	147,963	 	
Provision for Income Taxes	 	14,440	 	20,486	 	24,381	 	34,926	 	48,663	 	
Net Income	 	$	35,148	 	$	42,360	 	$	46,564	 	$	77,508	 	$	99,300	 	
Basic Earnings Per Share	 	$	0.74	 	$	0.89	 	$	0.97	 	$	1.63	 	$	2.07	 	
Diluted Earnings Per Share	 	$	0.74	 	$	0.88	 	$	0.96	 	$	1.62	 	$	2.05	 	
Dividends Declared Per Share	 	$	0.45	 	$	0.45	 	$	0.45	 	$	0.90	 	$	0.90	 	
Basic Weighted Average Shares	 	47,428,718	 	47,851,612	 	48,080,485	 	47,638,752	 	47,997,996	 	
Diluted Weighted Average Shares	 	47,607,814	 	48,074,656	 	48,415,602	 	47,837,778	 	48,352,082	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Condition	 	Table 4	
 
 	 	June 30,	 	March 31,	 	December 31,	 	June 30,	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	2010	 	
Assets	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	4,796	 	$	5,394	 	$	3,472	 	$	4,062	 	
Funds Sold	 	449,042	 	419,379	 	438,327	 	355,891	 	
Investment Securities	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	4,112,601	 	4,045,096	 	6,533,874	 	5,980,759	 	
Held-to-Maturity (Fair Value of $2,566,621; $2,437,803; $134,028; and $161,441)	 	2,512,024	 	2,426,710	 	127,249	 	153,190	 	
Loans Held for Sale	 	13,157	 	16,160	 	17,564	 	13,179	 	
Loans and Leases	 	5,351,473	 	5,326,929	 	5,335,792	 	5,440,911	 	
Allowance for Loan and Lease Losses	 	(144,976	)	(147,358	)	(147,358	)	(147,358	)	
Net Loans and Leases	 	5,206,497	 	5,179,571	 	5,188,434	 	5,293,553	 	
Total Earning Assets	 	12,298,117	 	12,092,310	 	12,308,920	 	11,800,634	 	
Cash and Noninterest-Bearing Deposits	 	203,326	 	223,068	 	165,748	 	343,514	 	
Premises and Equipment	 	105,785	 	106,729	 	108,170	 	108,394	 	
Customers’ Acceptances	 	882	 	779	 	437	 	412	 	
Accrued Interest Receivable	 	40,957	 	41,309	 	41,151	 	41,420	 	
Foreclosed Real Estate	 	2,590	 	2,793	 	1,928	 	3,192	 	
Mortgage Servicing Rights	 	25,072	 	25,919	 	25,379	 	25,646	 	
Goodwill	 	31,517	 	31,517	 	31,517	 	31,517	 	
Other Assets	 	452,958	 	437,880	 	443,537	 	501,116	 	
Total Assets	 	$	13,161,204	 	$	12,962,304	 	$	13,126,787	 	$	12,855,845	 	
 	 	 	 	 	 	 	 	 	 	
Liabilities	 	 	 	 	 	 	 	 	 	
Deposits	 	 	 	 	 	 	 	 	 	
Noninterest-Bearing Demand	 	$	2,507,358	 	$	2,568,942	 	$	2,447,713	 	$	2,214,803	 	
Interest-Bearing Demand	 	2,023,937	 	1,811,705	 	1,871,718	 	1,615,464	 	
Savings	 	4,413,390	 	4,515,921	 	4,526,893	 	4,423,473	 	
Time	 	1,034,349	 	1,015,823	 	1,042,671	 	1,070,919	 	
Total Deposits	 	9,979,034	 	9,912,391	 	9,888,995	 	9,324,659	 	
Funds Purchased	 	9,882	 	9,478	 	9,478	 	9,832	 	
Short-Term Borrowings	 	6,800	 	6,900	 	6,200	 	7,000	 	
Securities Sold Under Agreements to Repurchase	 	1,873,286	 	1,745,083	 	1,901,084	 	2,081,393	 	
Long-Term Debt	 	30,714	 	32,643	 	32,652	 	40,300	 	
Banker’s Acceptances	 	882	 	779	 	437	 	412	 	
Retirement Benefits Payable	 	30,588	 	30,707	 	30,885	 	35,669	 	
Accrued Interest Payable	 	5,457	 	6,605	 	5,007	 	5,078	 	
Taxes Payable and Deferred Taxes	 	106,244	 	124,774	 	121,517	 	228,660	 	
Other Liabilities	 	114,867	 	96,719	 	119,399	 	109,831	 	
Total Liabilities	 	12,157,754	 	11,966,079	 	12,115,654	 	11,842,834	 	
Shareholders’ Equity	 	 	 	 	 	 	 	 	 	
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2011 - 57,132,830 / 47,225,303; March 31, 2011 - 57,120,240 / 47,760,878; December 31, 2010 - 57,115,287 / 48,097,672; and June 30, 2010 - 57,100,287 / 48,264,157)	 	571	 	570	 	570	 	570	 	
Capital Surplus	 	502,777	 	502,029	 	500,888	 	497,082	 	
Accumulated Other Comprehensive Income	 	27,778	 	7,936	 	26,965	 	61,220	 	
Retained Earnings	 	964,420	 	951,817	 	932,629	 	895,565	 	
Treasury Stock, at Cost (Shares: June 30, 2011 - 9,907,527; March 31, 2011 - 9,359,362; December 31, 2010 - 9,017,615; and June 30, 2010 - 8,836,130)	 	(492,096	)	(466,127	)	(449,919	)	(441,426	)	
Total Shareholders’ Equity	 	1,003,450	 	996,225	 	1,011,133	 	1,013,011	 	
Total Liabilities and Shareholders’ Equity	 	$	13,161,204	 	$	12,962,304	 	$	13,126,787	 	$	12,855,845	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Shareholders’ Equity	 	Table 5	
 
 	 	 	 	 	 	 	 	Accum.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Other	 	 	 	 	 	 	 	
 	 	 	 	Common	 	Capital	 	Comprehensive	 	Retained	 	Treasury	 	Comprehensive	 	
(dollars in thousands)	 	Total	 	Stock	 	Surplus	 	Income	 	Earnings	 	Stock	 	Income	 	
Balance as of December 31, 2010	 	$	1,011,133	 	$	570	 	$	500,888	 	$	26,965	 	$	932,629	 	$	(449,919	)	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	77,508	 	—	 	—	 	—	 	77,508	 	—	 	$	77,508	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Unrealized Losses on Investment Securities, Net of Reclassification Adjustment	 	(235	)	—	 	—	 	(235	)	—	 	—	 	(235	)	
Amortization of Net Losses Related to Defined Benefit Plans	 	1,048	 	—	 	—	 	1,048	 	—	 	—	 	1,048	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	78,321	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Share-Based Compensation	 	1,360	 	—	 	1,360	 	—	 	—	 	—	 	 	 	
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (237,619 shares)	 	7,829	 	1	 	529	 	—	 	(2,752	)	10,051	 	 	 	
Common Stock Repurchased (1,109,988 shares)	 	(52,228	)	—	 	—	 	—	 	—	 	(52,228	)	 	 	
Cash Dividends Paid ($0.90 per share)	 	(42,965	)	—	 	—	 	—	 	(42,965	)	—	 	 	 	
Balance as of June 30, 2011	 	$	1,003,450	 	$	571	 	$	502,777	 	$	27,778	 	$	964,420	 	$	(492,096	)	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance as of December 31, 2009	 	$	895,973	 	$	569	 	$	494,318	 	$	6,925	 	$	843,521	 	$	(449,360	)	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	99,300	 	—	 	—	 	—	 	99,300	 	—	 	$	99,300	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Unrealized Gains on Investment Securities, Net of Reclassification Adjustment	 	53,534	 	—	 	—	 	53,534	 	—	 	—	 	53,534	 	
Amortization of Net Losses Related to Defined Benefit Plans	 	761	 	—	 	—	 	761	 	—	 	—	 	761	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	153,595	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Share-Based Compensation	 	1,545	 	—	 	1,545	 	—	 	—	 	—	 	 	 	
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (312,707 shares)	 	8,532	 	1	 	1,219	 	—	 	(3,902	)	11,214	 	 	 	
Common Stock Repurchased (67,493 shares)	 	(3,280	)	—	 	—	 	—	 	—	 	(3,280	)	 	 	
Cash Dividends Paid ($0.90 per share)	 	(43,354	)	—	 	—	 	—	 	(43,354	)	—	 	 	 	
Balance as of June 30, 2010	 	$	1,013,011	 	$	570	 	$	497,082	 	$	61,220	 	$	895,565	 	$	(441,426	)	 	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Average Balances and Interest Rates - Taxable Equivalent Basis	 	Table 6a	
 
 	 	Three Months Ended	 	Three Months Ended	 	Three Months Ended	 	
 	 	June 30, 2011	 	March 31, 2011	 	June 30, 2010	 	
 	 	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	 	$	5.3	 	$	—	 	0.15	%	$	4.0	 	$	—	 	(0.16	)%	$	5.3	 	$	—	 	0.17	%	
Funds Sold	 	518.4	 	0.3	 	0.23	 	457.2	 	0.3	 	0.22	 	586.8	 	0.4	 	0.27	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	4,061.4	 	23.9	 	2.35	 	5,646.9	 	38.0	 	2.70	 	5,531.2	 	45.2	 	3.27	 	
Held-to-Maturity	 	2,418.0	 	20.6	 	3.40	 	901.0	 	7.6	 	3.39	 	160.2	 	1.7	 	4.25	 	
Loans Held for Sale	 	11.5	 	0.1	 	3.25	 	8.5	 	0.1	 	5.65	 	8.5	 	0.1	 	4.46	 	
Loans and Leases1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	772.4	 	7.8	 	4.02	 	775.8	 	7.9	 	4.11	 	765.5	 	7.9	 	4.12	 	
Commercial Mortgage	 	890.9	 	10.8	 	4.87	 	851.2	 	10.3	 	4.93	 	826.2	 	10.5	 	5.10	 	
Construction	 	79.3	 	1.0	 	5.24	 	80.6	 	1.0	 	5.05	 	100.3	 	1.3	 	5.28	 	
Commercial Lease Financing	 	329.5	 	2.3	 	2.79	 	333.6	 	2.3	 	2.75	 	400.8	 	3.0	 	2.95	 	
Residential Mortgage	 	2,113.3	 	27.7	 	5.25	 	2,100.6	 	28.6	 	5.44	 	2,109.1	 	29.9	 	5.66	 	
Home Equity	 	785.3	 	9.5	 	4.83	 	796.0	 	9.6	 	4.91	 	875.8	 	10.9	 	5.01	 	
Automobile	 	192.8	 	3.3	 	6.92	 	203.1	 	3.6	 	7.14	 	249.4	 	4.7	 	7.63	 	
Other2	 	162.6	 	3.0	 	7.50	 	170.9	 	3.2	 	7.53	 	195.3	 	3.7	 	7.63	 	
Total Loans and Leases	 	5,326.1	 	65.4	 	4.92	 	5,311.8	 	66.5	 	5.04	 	5,522.4	 	71.9	 	5.22	 	
Other	 	79.9	 	0.3	 	1.40	 	79.9	 	0.3	 	1.40	 	79.8	 	0.3	 	1.39	 	
Total Earning Assets3	 	12,420.6	 	110.6	 	3.56	 	12,409.3	 	112.8	 	3.65	 	11,894.2	 	119.6	 	4.03	 	
Cash and Noninterest-Bearing Deposits	 	129.3	 	 	 	 	 	134.5	 	 	 	 	 	221.0	 	 	 	 	 	
Other Assets	 	417.3	 	 	 	 	 	421.8	 	 	 	 	 	488.0	 	 	 	 	 	
Total Assets	 	$	12,967.2	 	 	 	 	 	$	12,965.6	 	 	 	 	 	$	12,603.2	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,769.6	 	0.2	 	0.04	 	$	1,805.0	 	0.2	 	0.04	 	$	1,659.8	 	0.3	 	0.06	 	
Savings	 	4,523.0	 	1.9	 	0.17	 	4,536.9	 	2.2	 	0.20	 	4,477.8	 	4.2	 	0.38	 	
Time	 	1,009.5	 	2.7	 	1.07	 	1,045.9	 	2.8	 	1.10	 	1,093.0	 	3.4	 	1.24	 	
Total Interest-Bearing Deposits	 	7,302.1	 	4.8	 	0.26	 	7,387.8	 	5.2	 	0.29	 	7,230.6	 	7.9	 	0.44	 	
Short-Term Borrowings	 	16.2	 	—	 	0.13	 	17.1	 	—	 	0.13	 	17.7	 	—	 	0.13	 	
Securities Sold Under Agreements to Repurchase	 	1,862.4	 	7.4	 	1.56	 	1,761.2	 	7.1	 	1.60	 	1,785.2	 	6.5	 	1.44	 	
Long-Term Debt	 	32.6	 	0.5	 	6.49	 	32.7	 	0.4	 	5.48	 	74.4	 	1.0	 	5.52	 	
Total Interest-Bearing Liabilities	 	9,213.3	 	12.7	 	0.55	 	9,198.8	 	12.7	 	0.56	 	9,107.9	 	15.4	 	0.68	 	
Net Interest Income	 	 	 	$	97.9	 	 	 	 	 	$	100.1	 	 	 	 	 	$	104.2	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.01	%	 	 	 	 	3.09	%	 	 	 	 	3.35	%	
Net Interest Margin	 	 	 	 	 	3.16	%	 	 	 	 	3.24	%	 	 	 	 	3.51	%	
Noninterest-Bearing Demand Deposits	 	2,488.2	 	 	 	 	 	2,485.8	 	 	 	 	 	2,157.0	 	 	 	 	 	
Other Liabilities	 	248.9	 	 	 	 	 	262.2	 	 	 	 	 	356.1	 	 	 	 	 	
Shareholders’ Equity	 	1,016.8	 	 	 	 	 	1,018.8	 	 	 	 	 	982.2	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	12,967.2	 	 	 	 	 	$	12,965.6	 	 	 	 	 	$	12,603.2	 	 	 	 	 	

1  Non-performing loans and leases are included in the respective average loan and lease balances.  Income, if any, on such loans and leases is recognized on a cash basis.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.
3  Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $395,000, $383,000, and $237,000 for the three months ended June 30, 2011, March 31, 2011, and June 30, 2010, respectively.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Average Balances and Interest Rates - Taxable Equivalent Basis	 	Table 6b	
 
 	 	Six Months Ended	 	Six Months Ended	 	
 	 	June 30, 2011	 	June 30, 2010	 	
 	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	
(dollars in millions)	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	4.7	 	$	—	 	0.02	%	$	5.6	 	$	—	 	0.56	%	
Funds Sold	 	488.0	 	0.6	 	0.22	 	525.2	 	0.7	 	0.27	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	4,849.8	 	61.9	 	2.56	 	5,386.9	 	89.3	 	3.32	 	
Held-to-Maturity	 	1,663.6	 	28.2	 	3.39	 	167.1	 	3.6	 	4.26	 	
Loans Held for Sale	 	10.0	 	0.2	 	4.26	 	8.7	 	0.6	 	14.27	 	
Loans and Leases1	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	774.1	 	15.6	 	4.07	 	776.9	 	18.1	 	4.69	 	
Commercial Mortgage	 	871.2	 	21.2	 	4.90	 	832.1	 	21.0	 	5.10	 	
Construction	 	80.0	 	2.0	 	5.14	 	104.1	 	2.7	 	5.13	 	
Commercial Lease Financing	 	331.5	 	4.6	 	2.77	 	404.1	 	6.3	 	3.14	 	
Residential Mortgage	 	2,107.0	 	56.3	 	5.34	 	2,134.7	 	60.8	 	5.70	 	
Home Equity	 	790.6	 	19.1	 	4.87	 	892.5	 	22.2	 	5.01	 	
Automobile	 	197.9	 	6.9	 	7.03	 	260.9	 	9.9	 	7.68	 	
Other2	 	166.7	 	6.2	 	7.52	 	198.9	 	7.6	 	7.70	 	
Total Loans and Leases	 	5,319.0	 	131.9	 	4.98	 	5,604.2	 	148.6	 	5.33	 	
Other	 	79.9	 	0.6	 	1.40	 	79.8	 	0.6	 	1.39	 	
Total Earning Assets3	 	12,415.0	 	223.4	 	3.61	 	11,777.5	 	243.4	 	4.15	 	
Cash and Noninterest-Bearing Deposits	 	131.9	 	 	 	 	 	225.4	 	 	 	 	 	
Other Assets	 	419.5	 	 	 	 	 	488.2	 	 	 	 	 	
Total Assets	 	$	12,966.4	 	 	 	 	 	$	12,491.1	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,787.2	 	0.4	 	0.04	 	$	1,660.8	 	0.5	 	0.07	 	
Savings	 	4,529.9	 	4.1	 	0.18	 	4,456.1	 	8.7	 	0.39	 	
Time	 	1,027.6	 	5.5	 	1.08	 	1,114.7	 	7.0	 	1.27	 	
Total Interest-Bearing Deposits	 	7,344.7	 	10.0	 	0.28	 	7,231.6	 	16.2	 	0.45	 	
Short-Term Borrowings	 	16.6	 	—	 	0.13	 	23.2	 	—	 	0.11	 	
Securities Sold Under Agreements to Repurchase	 	1,812.2	 	14.4	 	1.58	 	1,659.2	 	12.9	 	1.55	 	
Long-Term Debt	 	32.6	 	1.0	 	5.99	 	82.3	 	2.2	 	5.37	 	
Total Interest-Bearing Liabilities	 	9,206.1	 	25.4	 	0.55	 	8,996.3	 	31.3	 	0.70	 	
Net Interest Income	 	 	 	$	198.0	 	 	 	 	 	$	212.1	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.06	%	 	 	 	 	3.45	%	
Net Interest Margin	 	 	 	 	 	3.20	%	 	 	 	 	3.61	%	
Noninterest-Bearing Demand Deposits	 	2,487.0	 	 	 	 	 	2,157.5	 	 	 	 	 	
Other Liabilities	 	255.5	 	 	 	 	 	371.6	 	 	 	 	 	
Shareholders’ Equity	 	1,017.8	 	 	 	 	 	965.7	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	12,966.4	 	 	 	 	 	$	12,491.1	 	 	 	 	 	

1  Non-performing loans and leases are included in the respective average loan and lease balances.  Income, if any, on such loans and leases is recognized on a cash basis.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.
3  Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $778,000 and $476,000 for the six months ended June 30, 2011 and 2010, respectively.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Analysis of Change in Net Interest Income - Taxable Equivalent Basis	 	Table 7a	
 
 	 	Three Months Ended June 30, 2011	 	
 	 	Compared to March 31, 2011	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Time 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	 	 	
Investment Securities	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	$	(9.7	)	$	(4.5	)	$	0.1	 	$	(14.1	)	
Held-to-Maturity	 	12.9	 	0.1	 	—	 	13.0	 	
Loans Held for Sale	 	0.1	 	(0.1	)	—	 	—	 	
Loans and Leases	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	—	 	(0.2	)	0.1	 	(0.1	)	
Commercial Mortgage	 	0.5	 	(0.1	)	0.1	 	0.5	 	
Residential Mortgage	 	0.1	 	(1.0	)	—	 	(0.9	)	
Home Equity	 	(0.1	)	(0.1	)	0.1	 	(0.1	)	
Automobile	 	(0.2	)	(0.1	)	—	 	(0.3	)	
Other2	 	(0.2	)	—	 	—	 	(0.2	)	
Total Loans and Leases	 	0.1	 	(1.5	)	0.3	 	(1.1	)	
Total Change in Interest Income	 	3.4	 	(6.0	)	0.4	 	(2.2	)	
 	 	 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	
Savings	 	—	 	(0.3	)	—	 	(0.3	)	
Time	 	(0.1	)	—	 	—	 	(0.1	)	
Total Interest-Bearing Deposits	 	(0.1	)	(0.3	)	—	 	(0.4	)	
Securities Sold Under Agreements to Repurchase	 	0.4	 	(0.2	)	0.1	 	0.3	 	
Long-Term Debt	 	—	 	0.1	 	—	 	0.1	 	
Total Change in Interest Expense	 	0.3	 	(0.4	)	0.1	 	—	 	
 	 	 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	3.1	 	$	(5.6	)	$	0.3	 	$	(2.2	)	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Analysis of Change in Net Interest Income - Taxable Equivalent Basis	 	Table 7b	
 
 	 	Three Months Ended June 30, 2011	 	
 	 	Compared to June 30, 2010	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	—	 	$	(0.1	)	$	(0.1	)	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	(10.3	)	(11.0	)	(21.3	)	
Held-to-Maturity	 	19.2	 	(0.3	)	18.9	 	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	0.1	 	(0.2	)	(0.1	)	
Commercial Mortgage	 	0.8	 	(0.5	)	0.3	 	
Construction	 	(0.3	)	—	 	(0.3	)	
Commercial Lease Financing	 	(0.5	)	(0.2	)	(0.7	)	
Residential Mortgage	 	—	 	(2.2	)	(2.2	)	
Home Equity	 	(1.1	)	(0.3	)	(1.4	)	
Automobile	 	(1.0	)	(0.4	)	(1.4	)	
Other2	 	(0.6	)	(0.1	)	(0.7	)	
Total Loans and Leases	 	(2.6	)	(3.9	)	(6.5	)	
Total Change in Interest Income	 	6.3	 	(15.3	)	(9.0	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	—	 	(0.1	)	(0.1	)	
Savings	 	0.1	 	(2.4	)	(2.3	)	
Time	 	(0.3	)	(0.4	)	(0.7	)	
Total Interest-Bearing Deposits	 	(0.2	)	(2.9	)	(3.1	)	
Securities Sold Under Agreements to Repurchase	 	0.3	 	0.6	 	0.9	 	
Long-Term Debt	 	(0.7	)	0.2	 	(0.5	)	
Total Change in Interest Expense	 	(0.6	)	(2.1	)	(2.7	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	6.9	 	$	(13.2	)	$	(6.3	)	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Analysis of Change in Net Interest Income - Taxable Equivalent Basis	 	Table 7c	
 
 	 	Six Months Ended June 30, 2011	 	
 	 	Compared to June 30, 2010	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	—	 	$	(0.1	)	$	(0.1	)	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	(8.3	)	(19.1	)	(27.4	)	
Held-to-Maturity	 	25.5	 	(0.9	)	24.6	 	
Loans Held for Sale	 	0.1	 	(0.5	)	(0.4	)	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	(0.1	)	(2.4	)	(2.5	)	
Commercial Mortgage	 	1.0	 	(0.8	)	0.2	 	
Construction	 	(0.7	)	—	 	(0.7	)	
Commercial Lease Financing	 	(1.0	)	(0.7	)	(1.7	)	
Residential Mortgage	 	(0.8	)	(3.7	)	(4.5	)	
Home Equity	 	(2.5	)	(0.6	)	(3.1	)	
Automobile	 	(2.2	)	(0.8	)	(3.0	)	
Other2	 	(1.2	)	(0.2	)	(1.4	)	
Total Loans and Leases	 	(7.5	)	(9.2	)	(16.7	)	
Total Change in Interest Income	 	9.8	 	(29.8	)	(20.0	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	0.1	 	(0.2	)	(0.1	)	
Savings	 	0.1	 	(4.7	)	(4.6	)	
Time	 	(0.5	)	(1.0	)	(1.5	)	
Total Interest-Bearing Deposits	 	(0.3	)	(5.9	)	(6.2	)	
Securities Sold Under Agreements to Repurchase	 	1.2	 	0.3	 	1.5	 	
Long-Term Debt	 	(1.4	)	0.2	 	(1.2	)	
Total Change in Interest Expense	 	(0.5	)	(5.4	)	(5.9	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	10.3	 	$	(24.4	)	$	(14.1	)	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Salaries and Benefits	 	Table 8	
 
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	2011	 	2010	 	
Salaries	 	$	29,142	 	$	29,075	 	$	29,942	 	$	58,217	 	$	59,085	 	
Incentive Compensation	 	4,243	 	3,466	 	3,447	 	7,709	 	6,893	 	
Share-Based Compensation and Cash Grants for the Purchase of Company Stock	 	2,483	 	675	 	3,984	 	3,158	 	4,540	 	
Commission Expense	 	1,553	 	1,663	 	1,259	 	3,216	 	2,605	 	
Retirement and Other Benefits	 	3,804	 	4,962	 	3,857	 	8,766	 	7,966	 	
Payroll Taxes	 	2,335	 	4,039	 	2,331	 	6,374	 	5,764	 	
Medical, Dental, and Life Insurance	 	2,438	 	2,223	 	2,481	 	4,661	 	4,961	 	
Separation Expense	 	802	 	679	 	199	 	1,481	 	250	 	
Total Salaries and Benefits	 	$	46,800	 	$	46,782	 	$	47,500	 	$	93,582	 	$	92,064	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Loan and Lease Portfolio Balances	 	Table 9	
 
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	2010	 	2010	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	815,912	 	$	771,923	 	$	772,624	 	$	736,385	 	$	758,851	 	
Commercial Mortgage	 	872,283	 	883,360	 	863,385	 	817,752	 	816,165	 	
Construction	 	81,432	 	80,360	 	80,325	 	88,671	 	88,823	 	
Lease Financing	 	316,776	 	331,491	 	334,997	 	353,962	 	399,744	 	
Total Commercial	 	2,086,403	 	2,067,134	 	2,051,331	 	1,996,770	 	2,063,583	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	2,130,335	 	2,108,376	 	2,094,189	 	2,073,340	 	2,087,380	 	
Home Equity	 	783,582	 	787,179	 	807,479	 	836,990	 	861,196	 	
Automobile	 	191,739	 	196,649	 	209,008	 	221,265	 	238,671	 	
Other1	 	159,414	 	167,591	 	173,785	 	183,689	 	190,081	 	
Total Consumer	 	3,265,070	 	3,259,795	 	3,284,461	 	3,315,284	 	3,377,328	 	
Total Loans and Leases	 	$	5,351,473	 	$	5,326,929	 	$	5,335,792	 	$	5,312,054	 	$	5,440,911	 	
 
Higher Risk Loans Outstanding
 
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	2010	 	2010	 	
Residential Home Building2	 	$	16,186	 	$	14,744	 	$	14,964	 	$	18,444	 	$	18,993	 	
Residential Land Loans3	 	19,960	 	21,595	 	23,745	 	28,149	 	30,262	 	
Home Equity Loans4	 	21,778	 	23,783	 	23,179	 	23,957	 	25,055	 	
Air Transportation5	 	36,961	 	37,440	 	37,879	 	38,611	 	39,165	 	
Total Higher Risk Loans	 	$	94,885	 	$	97,562	 	$	99,767	 	$	109,161	 	$	113,475	 	

1  Comprised of other revolving credit, installment, and lease financing.
2  Residential home building loans were $35.6 million as of June 30, 2011.  Higher risk loans within this segment are defined as those loans with a well-defined weakness or weaknesses that jeopardizes the orderly repayment of the loan.
3  We consider all of our residential land loans, which are consumer loans secured by unimproved lots, to be of higher risk due to the volatility in the value of the underlying collateral.
4  Higher risk home equity loans are defined as those loans originated in 2005 or later, with current monitoring credit scores below 600, and with original loan-to-value ratios greater than 70%.
5  We consider all of our air transportation leases to be of higher risk due to the weak financial profile of the industry.
 
Deposits
 
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	2010	 	2010	 	
Consumer	 	$	5,073,101	 	$	5,097,056	 	$	5,082,802	 	$	4,976,317	 	$	4,925,579	 	
Commercial	 	4,165,435	 	4,326,495	 	4,292,108	 	4,053,306	 	4,036,679	 	
Public and Other	 	740,498	 	488,840	 	514,085	 	572,839	 	362,401	 	
Total Deposits	 	$	9,979,034	 	$	9,912,391	 	$	9,888,995	 	$	9,602,462	 	$	9,324,659	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More	 	Table 10	
 
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	2010	 	2010	 	
Non-Performing Assets1	 	 	 	 	 	 	 	 	 	 	 	
Non-Accrual Loans and Leases	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	1,839	 	$	1,107	 	$	1,642	 	$	1,287	 	$	741	 	
Commercial Mortgage	 	3,290	 	3,421	 	3,503	 	5,071	 	3,476	 	
Construction	 	288	 	288	 	288	 	3,569	 	5,640	 	
Lease Financing	 	8	 	9	 	19	 	117	 	63	 	
Total Commercial	 	5,425	 	4,825	 	5,452	 	10,044	 	9,920	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	23,970	 	24,372	 	28,152	 	26,917	 	27,491	 	
Home Equity	 	2,155	 	2,602	 	2,254	 	2,303	 	2,638	 	
Other2	 	16	 	—	 	—	 	—	 	—	 	
Total Consumer	 	26,141	 	26,974	 	30,406	 	29,220	 	30,129	 	
Total Non-Accrual Loans and Leases	 	31,566	 	31,799	 	35,858	 	39,264	 	40,049	 	
Foreclosed Real Estate	 	2,590	 	2,793	 	1,928	 	5,910	 	3,192	 	
Total Non-Performing Assets	 	$	34,156	 	$	34,592	 	$	37,786	 	$	45,174	 	$	43,241	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Accruing Loans and Leases Past Due 90 Days or More	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	—	 	$	—	 	$	—	 	$	62	 	$	—	 	
Total Commercial	 	—	 	—	 	—	 	62	 	—	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	5,854	 	3,614	 	5,399	 	8,031	 	9,019	 	
Home Equity	 	1,147	 	1,100	 	1,067	 	1,246	 	2,256	 	
Automobile	 	167	 	260	 	410	 	348	 	464	 	
Other2	 	604	 	578	 	707	 	857	 	1,161	 	
Total Consumer	 	7,772	 	5,552	 	7,583	 	10,482	 	12,900	 	
Total Accruing Loans and Leases Past Due 90 Days or More	 	$	7,772	 	$	5,552	 	$	7,583	 	$	10,544	 	$	12,900	 	
Restructured Loans on Accrual Status and Not Past Due 90 Days or More	 	$	28,193	 	$	29,513	 	$	23,724	 	$	23,021	 	$	13,558	 	
Total Loans and Leases	 	$	5,351,473	 	$	5,326,929	 	$	5,335,792	 	$	5,312,054	 	$	5,440,911	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	 	0.59	%	0.60	%	0.67	%	0.74	%	0.74	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets to Total Loans and Leases, Loans Held for Sale, and Foreclosed Real Estate	 	0.64	%	0.65	%	0.71	%	0.85	%	0.79	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases, Commercial Loans Held for Sale, and Commercial Foreclosed Real Estate	 	0.34	%	0.31	%	0.31	%	0.75	%	0.62	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate	 	0.83	%	0.86	%	0.95	%	0.91	%	0.90	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases, Loans Held for Sale, and Foreclosed Real Estate	 	0.78	%	0.75	%	0.85	%	1.04	%	1.03	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Quarter to Quarter Changes in Non-Performing Assets 1	 	 	 	 	 	 	 	 	 	 	 	
Balance at Beginning of Quarter	 	$	34,592	 	$	37,786	 	$	45,174	 	$	43,241	 	$	41,624	 	
Additions	 	6,079	 	5,799	 	8,175	 	10,606	 	10,761	 	
Reductions	 	 	 	 	 	 	 	 	 	 	 	
Payments	 	(2,363	)	(2,164	)	(5,019	)	(3,432	)	(4,414	)	
Return to Accrual Status	 	(3,226	)	(6,408	)	(1,250	)	(964	)	—	 	
Transfer to Foreclosed Real Estate	 	—	 	(208	)	(1,133	)	(2,070	)	—	 	
Sales of Foreclosed Real Estate	 	(497	)	—	 	(5,427	)	(700	)	—	 	
Charge-offs/Write-downs	 	(429	)	(213	)	(2,734	)	(1,507	)	(4,730	)	
Total Reductions	 	(6,515	)	(8,993	)	(15,563	)	(8,673	)	(9,144	)	
Balance at End of Quarter	 	$	34,156	 	$	34,592	 	$	37,786	 	$	45,174	 	$	43,241	 	

1  Excluded from non-performing assets was a contractually binding non-accrual loan held for sale of $7.5 million as of March 31, 2011
2  Comprised of other revolving credit, installment, and lease financing.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Reserve for Credit Losses	 	Table 11	
 
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	June 30,	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	2011	 	2010	 	
Balance at Beginning of Period	 	$	152,777	 	$	152,777	 	$	151,777	 	$	152,777	 	$	149,077	 	
Loans and Leases Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(1,507	)	(1,657	)	(3,056	)	(3,164	)	(6,962	)	
Commercial Mortgage	 	—	 	—	 	(1,000	)	—	 	(1,303	)	
Construction	 	—	 	—	 	(1,417	)	—	 	(2,274	)	
Lease Financing	 	—	 	—	 	(107	)	—	 	(297	)	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	(1,977	)	(1,751	)	(4,377	)	(3,728	)	(7,632	)	
Home Equity	 	(3,252	)	(1,359	)	(2,886	)	(4,611	)	(10,322	)	
Automobile	 	(797	)	(1,029	)	(1,752	)	(1,826	)	(3,779	)	
Other1	 	(1,488	)	(1,564	)	(2,530	)	(3,052	)	(5,352	)	
Total Loans and Leases Charged-Off	 	(9,021	)	(7,360	)	(17,125	)	(16,381	)	(37,921	)	
Recoveries on Loans and Leases Previously Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	399	 	572	 	367	 	971	 	1,225	 	
Commercial Mortgage	 	—	 	—	 	—	 	—	 	24	 	
Lease Financing	 	44	 	50	 	11	 	94	 	12	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	622	 	259	 	236	 	881	 	658	 	
Home Equity	 	750	 	339	 	197	 	1,089	 	297	 	
Automobile	 	652	 	649	 	826	 	1,301	 	1,579	 	
Other1	 	572	 	800	 	549	 	1,372	 	1,176	 	
Total Recoveries on Loans and Leases Previously Charged-Off	 	3,039	 	2,669	 	2,186	 	5,708	 	4,971	 	
Net Loans and Leases Charged-Off	 	(5,982	)	(4,691	)	(14,939	)	(10,673	)	(32,950	)	
Provision for Credit Losses	 	3,600	 	4,691	 	15,939	 	8,291	 	36,650	 	
Balance at End of Period2	 	$	150,395	 	$	152,777	 	$	152,777	 	$	150,395	 	$	152,777	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Components	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	144,976	 	$	147,358	 	$	147,358	 	$	144,976	 	$	147,358	 	
Reserve for Unfunded Commitments	 	5,419	 	5,419	 	5,419	 	5,419	 	5,419	 	
Total Reserve for Credit Losses	 	$	150,395	 	$	152,777	 	$	152,777	 	$	150,395	 	$	152,777	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases Outstanding	 	$	5,326,123	 	$	5,311,781	 	$	5,522,423	 	$	5,318,993	 	$	5,604,218	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)	 	0.45	%	0.36	%	1.09	%	0.40	%	1.19	%	
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding	 	2.71	%	2.77	%	2.71	%	2.71	%	2.71	%	

1  Comprised of other revolving credit, installment, and lease financing.
2  Included in this analysis is activity related to the Company’s reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Business Segments Selected Financial Information	 	Table 12a	
 
 	 	Retail	 	Commercial	 	Investment	 	Treasury	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	and Other	 	Total	 	
Three Months Ended June 30, 2011	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	43,890	 	$	34,686	 	$	3,792	 	$	15,131	 	$	97,499	 	
Provision for Credit Losses	 	5,585	 	397	 	—	 	(2,382	)	3,600	 	
Net Interest Income After Provision for Credit Losses	 	38,305	 	34,289	 	3,792	 	17,513	 	93,899	 	
Noninterest Income	 	21,697	 	9,741	 	15,234	 	2,791	 	49,463	 	
Noninterest Expense	 	(52,345	)	(24,159	)	(15,043	)	(2,227	)	(93,774	)	
Income Before Provision for Income Taxes	 	7,657	 	19,871	 	3,983	 	18,077	 	49,588	 	
Provision for Income Taxes	 	(2,833	)	(6,974	)	(1,474	)	(3,159	)	(14,440	)	
Net Income	 	4,824	 	12,897	 	2,509	 	14,918	 	35,148	 	
Total Assets as of June 30, 2011	 	$	3,058,041	 	$	2,266,089	 	$	221,347	 	$	7,615,727	 	$	13,161,204	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended June 30, 20101	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	48,246	 	$	36,319	 	$	4,215	 	$	15,148	 	$	103,928	 	
Provision for Credit Losses	 	9,871	 	6,206	 	(127	)	(11	)	15,939	 	
Net Interest Income After Provision for Credit Losses	 	38,375	 	30,113	 	4,342	 	15,159	 	87,989	 	
Noninterest Income	 	25,806	 	11,697	 	14,310	 	17,061	 	68,874	 	
Noninterest Expense	 	(43,436	)	(24,977	)	(15,553	)	(1,952	)	(85,918	)	
Income Before Provision for Income Taxes	 	20,745	 	16,833	 	3,099	 	30,268	 	70,945	 	
Provision for Income Taxes	 	(7,676	)	(6,322	)	(1,147	)	(9,236	)	(24,381	)	
Net Income	 	13,069	 	10,511	 	1,952	 	21,032	 	46,564	 	
Total Assets as of June 30, 20101	 	$	3,156,403	 	$	2,326,589	 	$	312,676	 	$	7,060,177	 	$	12,855,845	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Business Segments Selected Financial Information	 	Table 12b	
 
 	 	Retail	 	Commercial	 	Investment	 	Treasury	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	and Other	 	Total	 	
Six Months Ended June 30, 2011	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	88,314	 	$	69,689	 	$	7,655	 	$	31,538	 	$	197,196	 	
Provision for Credit Losses	 	10,628	 	209	 	(140	)	(2,406	)	8,291	 	
Net Interest Income After Provision for Credit Losses	 	77,686	 	69,480	 	7,795	 	33,944	 	188,905	 	
Noninterest Income	 	41,817	 	18,798	 	30,284	 	12,486	 	103,385	 	
Noninterest Expense	 	(96,244	)	(48,581	)	(30,447	)	(4,584	)	(179,856	)	
Income Before Provision for Income Taxes	 	23,259	 	39,697	 	7,632	 	41,846	 	112,434	 	
Provision for Income Taxes	 	(8,606	)	(13,806	)	(2,824	)	(9,690	)	(34,926	)	
Net Income	 	14,653	 	25,891	 	4,808	 	32,156	 	77,508	 	
Total Assets as of June 30, 2011	 	$	3,058,041	 	$	2,266,089	 	$	221,347	 	$	7,615,727	 	$	13,161,204	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Six Months Ended June 30, 20101	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	97,551	 	$	77,446	 	$	8,538	 	$	28,046	 	$	211,581	 	
Provision for Credit Losses	 	25,227	 	11,347	 	88	 	(12	)	36,650	 	
Net Interest Income After Provision for Credit Losses	 	72,324	 	66,099	 	8,450	 	28,058	 	174,931	 	
Noninterest Income	 	49,273	 	21,715	 	29,337	 	40,331	 	140,656	 	
Noninterest Expense	 	(85,769	)	(48,839	)	(29,598	)	(3,418	)	(167,624	)	
Income Before Provision for Income Taxes	 	35,828	 	38,975	 	8,189	 	64,971	 	147,963	 	
Provision for Income Taxes	 	(13,256	)	(14,321	)	(3,031	)	(18,055	)	(48,663	)	
Net Income	 	22,572	 	24,654	 	5,158	 	46,916	 	99,300	 	
Total Assets as of June 30, 20101	 	$	3,156,403	 	$	2,326,589	 	$	312,676	 	$	7,060,177	 	$	12,855,845	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Selected Quarterly Financial Data	 	Table 13	
 
 	 	Three Months Ended	 	
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands, except per share amounts)	 	2011	 	2011	 	2010	 	2010	 	2010	 	
Quarterly Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	65,542	 	$	66,593	 	$	67,915	 	$	70,198	 	$	71,997	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	23,490	 	37,669	 	39,546	 	40,775	 	44,989	 	
Held-to-Maturity	 	20,553	 	7,633	 	1,388	 	1,553	 	1,700	 	
Deposits	 	2	 	(2	)	7	 	5	 	3	 	
Funds Sold	 	297	 	251	 	160	 	211	 	396	 	
Other	 	279	 	279	 	279	 	278	 	277	 	
Total Interest Income	 	110,163	 	112,423	 	109,295	 	113,020	 	119,362	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	4,792	 	5,232	 	5,918	 	7,041	 	7,930	 	
Securities Sold Under Agreements to Repurchase	 	7,338	 	7,041	 	6,425	 	6,670	 	6,472	 	
Funds Purchased	 	5	 	6	 	7	 	10	 	6	 	
Long-Term Debt	 	529	 	447	 	672	 	673	 	1,026	 	
Total Interest Expense	 	12,664	 	12,726	 	13,022	 	14,394	 	15,434	 	
Net Interest Income	 	97,499	 	99,697	 	96,273	 	98,626	 	103,928	 	
Provision for Credit Losses	 	3,600	 	4,691	 	5,278	 	13,359	 	15,939	 	
Net Interest Income After Provision for Credit Losses	 	93,899	 	95,006	 	90,995	 	85,267	 	87,989	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	11,427	 	11,806	 	11,190	 	10,534	 	11,457	 	
Mortgage Banking	 	2,661	 	3,122	 	4,549	 	6,811	 	3,752	 	
Service Charges on Deposit Accounts	 	9,375	 	9,932	 	11,632	 	12,737	 	14,856	 	
Fees, Exchange, and Other Service Charges	 	16,662	 	14,945	 	15,196	 	15,500	 	15,806	 	
Investment Securities Gains (Losses), Net	 	—	 	6,084	 	(1	)	7,877	 	14,951	 	
Insurance	 	3,210	 	2,771	 	2,309	 	2,646	 	2,291	 	
Other	 	6,128	 	5,262	 	6,602	 	7,020	 	5,761	 	
Total Noninterest Income	 	49,463	 	53,922	 	51,477	 	63,125	 	68,874	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	46,800	 	46,782	 	46,809	 	46,840	 	47,500	 	
Net Occupancy	 	10,476	 	10,327	 	10,504	 	10,186	 	10,154	 	
Net Equipment	 	4,741	 	4,698	 	5,902	 	4,545	 	4,366	 	
Professional Fees	 	2,294	 	2,158	 	2,116	 	905	 	2,091	 	
FDIC Insurance	 	2,010	 	3,244	 	3,198	 	3,159	 	3,107	 	
Other	 	27,453	 	18,873	 	20,193	 	24,255	 	18,700	 	
Total Noninterest Expense	 	93,774	 	86,082	 	88,722	 	89,890	 	85,918	 	
Income Before Provision for Income Taxes	 	49,588	 	62,846	 	53,750	 	58,502	 	70,945	 	
Provision for Income Taxes	 	14,440	 	20,486	 	13,172	 	14,438	 	24,381	 	
Net Income	 	$	35,148	 	$	42,360	 	$	40,578	 	$	44,064	 	$	46,564	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Basic Earnings Per Share	 	$	0.74	 	$	0.89	 	$	0.84	 	$	0.91	 	$	0.97	 	
Diluted Earnings Per Share	 	$	0.74	 	$	0.88	 	$	0.84	 	$	0.91	 	$	0.96	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	$	5,351,473	 	$	5,326,929	 	$	5,335,792	 	$	5,312,054	 	$	5,440,911	 	
Total Assets	 	13,161,204	 	12,962,304	 	13,126,787	 	12,716,603	 	12,855,845	 	
Total Deposits	 	9,979,034	 	9,912,391	 	9,888,995	 	9,602,462	 	9,324,659	 	
Total Shareholders’ Equity	 	1,003,450	 	996,225	 	1,011,133	 	1,039,561	 	1,013,011	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.09	%	1.32	%	1.24	%	1.37	%	1.48	%	
Return on Average Shareholders’ Equity	 	13.86	 	16.86	 	15.08	 	16.64	 	19.01	 	
Efficiency Ratio1	 	63.81	 	56.04	 	60.05	 	55.57	 	49.72	 	
Net Interest Margin2	 	3.16	 	3.24	 	3.15	 	3.27	 	3.51	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Hawaii Economic Trends	 	Table 14	
 
 	 	Five Months Ended	 	Year Ended	 	
($ in millions; jobs in thousands)	 	May 31, 2011	 	December 31, 2010	 	December 31, 2009	 	
Hawaii Economic Trends	 	 	 	 	 	 	 	 	 	 	 	 	 	
State General Fund Revenues1	 	$	1,977.1	 	0.9	%	$	4,314.1	 	7.4	%	$	4,018.2	 	(12.8	)%	
General Excise and Use Tax Revenue 1	 	$	1,109.6	 	9.9	 	$	2,379.9	 	3.6	 	$	2,296.3	 	(10.6	)	
Jobs2 	 	593.3	 	1.3	 	586.8	 	(0.8	)	591.7	 	(4.4	)	
 
 	 	June 30,	 	December 31,	 	September 30,	 	December 31,	 	
(annual percentage, except 2010 and 2011)	 	2011	 	2010	 	2010	 	2009	 	2008	 	
Unemployment3	 	 	 	 	 	 	 	 	 	 	 	
Statewide, seasonally adjusted	 	6.0	%	6.3	%	6.5	%	6.9	%	5.6	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Oahu	 	4.9	 	4.8	 	5.6	 	5.4	 	4.3	 	
Island of Hawaii	 	9.2	 	8.6	 	9.8	 	9.5	 	7.4	 	
Maui	 	7.2	 	7.4	 	8.3	 	8.8	 	6.9	 	
Kauai	 	8.2	 	7.8	 	8.9	 	8.7	 	7.8	 	
 
 	 	June 30,	 	December 31,	 	
(percentage change, except months of inventory)	 	2011	 	2010	 	2009	 	
Housing Trends (Single Family Oahu)4	 	 	 	 	 	 	 	
Median Home Price	 	(2.6	)%	3.1	%	(7.3	)%	
Home Sales Volume (units)	 	(7.0	)%	13.4	%	(1.8	)%	
Months of Inventory	 	6.1	 	6.0	 	6.8	 	
 
 	 	Monthly Visitor Arrivals,	 	Percentage Change	 	
(in thousands)	 	Seasonally Adjusted	 	from Previous Month	 	
Tourism2	 	 	 	 	 	
 	 	 	 	 	 	
May 31, 2011	 	582.1	 	(2.8	)%	
April 30, 2011	 	598.7	 	3.4	 	
March 31, 2011	 	579.2	 	(4.7	)	
February 28, 2011	 	607.5	 	(0.9	)	
January 31, 2011	 	613.2	 	2.5	 	
December 31, 2010	 	598.3	 	(1.9	)	
November 30, 2010	 	609.8	 	1.6	 	
October 31, 2010	 	600.3	 	1.1	 	
September 30, 2010	 	593.9	 	(0.9	)	
August 31, 2010	 	599.5	 	1.0	 	
July 31, 2010	 	593.4	 	2.4	 	
June 30, 2010	 	579.4	 	(0.4	)	
May 31, 2010	 	581.8	 	1.8	 	
April 30, 2010	 	571.6	 	2.2	 	
March 31, 2010	 	559.4	 	2.5	 	
February 28, 2010	 	545.9	 	(0.6	)	
January 31, 2010	 	549.3	 	1.2	 	

1  Source:  Hawaii Department of Business, Economic Development & Tourism.
2  Source:  University of Hawaii Economic Research Organization.  Year-to-date figures.
3  Source:  University of Hawaii Economic Research Organization, State of Hawaii Department of Labor and Industrial Relations.
4  Source:  Honolulu Board of REALTORS.
Note:  Certain prior period seasonally adjusted information has been revised.