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 28, 2003	
 
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) 537-8430

 
Item 12.       Results of Operations and Financial Conditions
 
(a)      Exhibit 99.1
 
Press Release: Bank of Hawaii Corporation Second Quarter 2003 Financial Results
 
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 thereunto duly authorized.
 
Date: July 28, 2003	 	BANK OF HAWAII CORPORATION	
 	 	 	
 	 	/s/ Michael E. O’Neill	
 	 	Michael E. O’Neill	
 	 	Chairman, Chief Executive Officer and
President	
 
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EXHIBIT 99.1
 
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

BANK OF HAWAII CORPORATION

EXHIBIT TO CURRENT REPORT ON
FORM 8-K DATED July 28, 2003

Commission File Number 1-6887

 

Bank of Hawaii Corporation Second Quarter 2003 Financial Results
 
•                       Diluted Earnings Per Share Increases to $0.48
•                       Net Income Increases to $30.0 Million for the Quarter
•                       Board of Directors Declares Dividend of $0.19 Per Share
•                       Company Successfully Completes Systems Conversion
 
FOR IMMEDIATE RELEASE
 
HONOLULU, HI (July 28, 2003) — Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.48 for the second quarter of 2003, up 2.1 percent from diluted earnings per share of $0.47 in the first quarter of 2003 and up 14.3 percent from $0.42 in the second quarter last year.  Net income for the second quarter was $30.0 million, up from $29.8 million in the previous quarter and down from $31.0 million in the same quarter last year.  Net income in the second quarter of 2003 included charges of $10.1 million related to the information technology systems replacement project compared to charges of $7.4 million in the first quarter of 2003.
 
The return on average assets for the second quarter of 2003 was 1.27 percent, down from 1.31 percent in the first quarter of 2003 and up from 1.23 percent in the second quarter of 2002.  The return on average equity was 12.93 percent in the second quarter, up 4.1 percent from 12.42 percent in the previous quarter and up 30.1 percent from 9.94 percent in the same quarter last year.
 
“I am encouraged by the Company’s ongoing improvement that is reflected in our second quarter financial results,” said Michael E. O’Neill, Chairman, CEO and President.  “Our systems conversion was completed earlier this month on time and on budget.  Considering the scope and magnitude of this project, we are pleased that it was accomplished without major disruption to customer service.  We continue to look forward to the benefits the new system will provide our customers and shareholders.”
 
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For six months ended June 30, 2003, net income was $59.8 million, down from net income of $62.1 million for the same period last year largely due to $17.5 million in systems replacement costs.  Diluted earnings per share were $0.95 for the first half of 2003, an increase of 14.5 percent from $0.83 per share for the first half of 2002.  The year-to-date return on average assets was 1.29 percent, up from 1.22 percent for the same six months in 2002.  The year-to-date return on average equity was 12.67 percent, a significant improvement from 9.96 percent for the six months ended June 30, 2002.
 
Financial Highlights
 
Net interest income for the second quarter of 2003 on a fully taxable equivalent basis was $90.5 million, down $0.5 million from the first quarter of 2003 and down $2.5 million from net interest income of $93.0 million in the second quarter of 2002.  The decrease in net interest income was primarily due to reductions in interest rates.  An analysis of the change in net interest income is included in Table 6.
 
The net interest margin was 4.12 percent for the second quarter of 2003, a 17 basis point decrease from 4.29 percent in the previous quarter and a 15 basis point increase from 3.97 percent in the same quarter last year.  The decrease in the net interest margin compared with the previous quarter was largely due to strategic de-leveraging of the balance sheet.
 
The Company did not recognize a provision for loan and lease losses during the quarter or the previous quarter.  The allowance for loan and lease losses was reduced $2.1 million from March 31, 2003, which equaled the amount of net charge-offs for the quarter.  Provision for loan and lease losses of $3.3 million in the second quarter of 2002 equaled net charge-offs for that quarter.
 
Non-interest income was $50.7 million for the quarter, an increase of $6.0 million or 13.4 percent compared to non-interest income of $44.8 million in the first quarter of 2003.  The improvement was largely due to increased mortgage banking income, as the Company returned to selling the majority of its mortgage loan production in the second quarter.  Non-interest income was up $2.8 million, or 5.9 percent from non-interest income of $47.9 million in the second quarter of 2002.
 
Non-interest expense was $95.4 million in the second quarter of 2003, including the previously mentioned $10.1 million in system replacement costs.  Non-interest expense for the first quarter of 2003 included $7.4 million in system replacement costs as previously discussed.  Excluding these items, non-interest expense was $85.3 million in the second quarter of 2003, an increase of $2.5 million, or 3.0 percent, compared to the previous quarter and a decrease of $4.1 million, or 4.6 percent, from the same quarter last year.    The increase from the previous quarter was largely due to increased salary expense resulting from vesting of restricted stock, severance accruals and seasonal pay increases.
 
The efficiency ratio was 67.6 percent for the second quarter of 2003.  Excluding systems replacement costs, the efficiency ratio was 60.4 percent in the second quarter, compared to 61.0 percent in the previous quarter and 63.5 percent in the same quarter last year.  For the six months ending June 30, 2003, the efficiency ratio, excluding systems replacement and net restructuring costs was 60.7 percent compared to 61.9 percent in the comparable period last year.
 
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The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services Group, and Treasury and Other Corporate.  Business segment results are determined based on the Company’s internal financial management reporting process and organizational structure.  Business segment performance details are summarized in Tables 11 and 11a.
 
Asset Quality
 
Bank of Hawaii Corporation’s credit quality continued to improve in the second quarter of 2003 as measured by reductions in non-performing assets and internal classifications, and a continued positive trend in the level of net charge-offs.  Non-performing assets were $42.0 million at the end of the quarter, a decrease of $2.2 million, or 5.0 percent, from non-performing assets of $44.2 million at the end of the previous quarter.  Improvements in non-performing assets were largely the result of loans returned to accrual or paid-off.  These reductions were partially offset by the downgrade of a $7.6 million credit to a local company in Hawaii.  Non-performing assets declined $36.8 million, or 46.7 percent compared to $78.8 million at the end of the same quarter last year.  At June 30, 2003 the ratio of non-performing assets to total loans plus foreclosed assets and non-performing loans held for sale was 0.77 percent compared with 0.79 percent at March 31, 2003 and 1.45 percent at June 30, 2002.
 
Non-accrual loans were $32.7 million at June 30, 2003, a reduction of $2.4 million, or 6.8 percent, from $35.1 million at March 31, 2003 and down $28.9 million, or 46.9 percent, from $61.6 million at June 30, 2002.  Non-accrual loans as a percentage of total loans were 0.60 percent at June 30, 2003, down from 0.63 percent at the end of the previous quarter and down significantly from 1.14 percent at the end of the comparable quarter last year.
 
Net charge-offs for the second quarter of 2003 were $2.1 million, or 0.15 percent (annualized) of total average loans, a decrease from $2.8 million, or 0.21 percent (annualized) of total average loans in the first quarter of 2003.  Net charge-offs during the second quarter of 2002 were $3.3 million, or 0.24 percent (annualized) of total average loans.  Net charge-offs during the second quarter of 2003 were comprised of $5.7 million in charge-offs partially offset by recoveries of $3.6 million.  Net charge-offs for the first half of 2003 were $4.9 million, or 0.18 percent (annualized) of total average loans, a decrease from $11.6 million, or 0.42 percent (annualized) of total average loans in the comparable period last year.
 
The allowance for loan and lease losses was $138.0 million at June 30, 2003.  The ratio of the allowance for loan and lease losses to total loans was 2.52 percent at June 30, 2003 unchanged from March 31, 2003 and down from 2.94 percent at June 30, 2002.
 
Concentrations of credit exposure to selected components of the portfolio are summarized in Table 7.
 
Other Financial Highlights
 
Total assets were $9.6 billion at June 30, 2003, up from $9.5 billion at December 31, 2002 and down from $9.8 billion at June 30, 2002.  The increase from December 31, 2002 was largely due to growth in loans offset by reductions in non-earning assets.  Compared to the previous year, total assets decreased $273 million due to reductions in short-term investments as excess liquidity was utilized for share repurchases and debt reduction that offset loan growth.
 
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Total assets increased $141 million compared to March 31, 2003 largely due to growth in investment securities that offset a net decrease in loans.  Commercial loans declined slightly from the previous quarter as managed reductions in syndicated lending and lease financing offset growth in Hawaii commercial lending.  The decrease in consumer loans was largely the result of reductions in residential mortgages as the Company returned to selling new loan originations in the secondary market during the second quarter of 2003.  Loan portfolio balances are summarized in Table 7.
 
Total deposits at June 30, 2003 were $7.1 billion, up $221 million from December 31, 2002 and up $685 million from June 30, 2002 as growth in demand and savings deposits continued to offset managed decreases in time and foreign deposits.
 
During the second quarter of 2003, Bank of Hawaii Corporation repurchased 2.2 million shares of common stock at a total cost of $73.0 million under the share repurchase program.  The average cost per share was $33.70 during the quarter.  From the beginning of the program through June 30, 2003, the Company had repurchased a total of 25.2 million shares and returned a total of $687.2 million to the shareholders at an average cost of $27.31 per share.  Through July 25, 2003, the Company repurchased an additional 0.24 million shares of common stock at a cost of $34.15 per share.  Remaining buyback authority was $104.7 million at July 25, 2003.
 
The Company’s capital and liquidity remains exceptionally strong.  At June 30, 2003 the Tier 1 leverage ratio was 9.29 percent compared to 10.03 percent at March 31, 2003 and 12.11 percent at June 30, 2002.
 
The Company’s Board of Directors declared a quarterly cash dividend of $0.19 per share on the Company’s outstanding shares.  The dividend will be payable on September 15, 2003 to shareholders of record at the close of business on August 22, 2003.  The Company’s dividend level is currently under review and it is anticipated that an increase will be announced in the third quarter earnings release.
 
Information Technology Systems Replacement Project
 
Bank of Hawaii Corporation signed a seven-year outsourcing agreement with Metavante Corporation in July of 2002 to serve as the Company’s primary technology systems provider.  The conversion to Metavante was completed on July 7, 2003.  The Company has been successfully operating on the Metavante platform since the conversion.  This lower cost platform is expected to provide annual cost savings of over $17 million compared to second quarter 2002 technology expense levels.  In connection with this project, the Company estimates that it will recognize transition charges of approximately $35 million over the five-quarter conversion period that ends during the third quarter of 2003.  During the second quarter of 2003, $10.1 million in costs were incurred, bringing the total project-to-date cost to $31.1 million.  The remaining system conversion cost of approximately $4.4 million is expected to be recognized in the third quarter of 2003.  Additional details on this project may be found in Table 10.
 
Economic Outlook
 
Economic expansion continued in Hawaii during the second quarter of 2003.  Hawaii personal income during the first quarter of 2003 increased 5.5 percent from the prior year period in nominal terms.  Adjusted for inflation, Hawaii real personal income grew at a 3.5 percent compound annual rate during the eight quarters ended in the first quarter of 2003, a pace that is expected to continue through 2003.  Hawaii seasonally-adjusted unemployment rose from 3.0
 
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percent in February 2003 to 4.1 percent in June 2003, the same unemployment rate as one year earlier in June 2002.  A resurgence of payroll employment growth after the Iraq conflict suggested that unemployment rates had only temporarily increased.  Domestic travel—comprising more than 80 percent of passenger volumes—rose 4.8 percent during the second quarter of 2003 from the same quarter last year.  International travel to Hawaii fell to 30.8 percent below second quarter 2002 volumes.  The resulting 3.8 percent decline in overall passenger volumes during the second quarter of 2003 from same quarter last year was reversed in July 2003 as Asian arrivals increased.  For more economic information, visit the Company’s web site http://www.boh.com/econ/.
 
Earnings Outlook
 
The Company continues to believe that its previously published earnings guidance of $131 million in net income for the full year of 2003 remains realistic.  Based on current conditions, the Company does not expect to record a provision for loan and lease losses in 2003.  However, the actual amount of the provision for loan and lease losses depends on determinations of credit risk that are made near the end of each quarter.  Earnings per share and return on equity projections continue to be dependent upon the terms and timing of share repurchases.
 
Conference Call Information
 
The Company will review its second quarter 2003 financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time).  The presentation 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 is (800) 915-4836 in the United States or (973) 317-5319 for international callers.  No confirmation code is required to access the call.  A replay will be available for one week beginning at 10:00 a.m. Hawaii Time (4:00 p.m. Eastern Time) on Monday, July 28, 2003 by calling (800) 428-6051 in the United States or (973) 709-2089 for international callers and entering the number 273139 when prompted.  A replay of the presentation will also be available via the Investor Relations link of the Company’s web site.
 
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.
 
This news release contains forward-looking statements concerning, among other things, the likelihood of an increase in dividend, the expected level of loan loss provisioning, anticipated costs and annual savings of our technology systems replacement project, and anticipated revenues and expenses in 2003 and beyond.  We believe the assumptions underlying our forward-looking statements are reasonable.  However, any of the assumptions could prove to be inaccurate and actual results may differ materially from those projected for a variety of reasons, including, but not limited to: 1) unanticipated changes in business and economic conditions, the competitive environment, fiscal and monetary policies, or legislation in Hawaii and the other markets we serve; 2) changes in our credit quality or risk profile which may increase or decrease the required level of allowance for loan and lease losses; 3) changes in market interest rates that may deteriorate our credit markets and ability to maintain our net interest margin; 4) changes to the amount and timing of our proposed equity repurchases; 5) inability to achieve expected benefits of our technology outsourcing project and other business process changes due to adverse changes in implementation processes or costs, operational savings, or timing; 6) actions by the United States military and real or threatened terrorist activity affecting business conditions; and 7) adverse weather and other natural conditions impacting our and our customers’ operations.  We do not undertake any obligation to update any forward-looking statements to reflect later events or circumstances.
 
# # # #
 
5

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Highlights  (Unaudited)	 	Table 1	
 
(dollars in thousands except per share amounts)
Earnings Highlights and Performance Ratios	 	Three Months Ended
June 30,	 	Six Months Ended
June 30,	 	 	
 	 	2003	 	2002 (1)	 	2003	 	2002 (1)	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	$	30,034	 	$	31,016	 	$	59,835	 	$	62,072	 	 	
Basic Earnings Per Share	 	0.50	 	0.43	 	0.99	 	0.85	 	 	
Diluted Earnings Per Share	 	0.48	 	0.42	 	0.95	 	0.83	 	 	
Cash Dividends	 	11,370	 	13,068	 	22,932	 	26,245	 	 	
Return on Average Assets	 	1.27	%	1.23	%	1.29	%	1.22	%	 	
Return on Average Equity	 	12.93	%	9.94	%	12.67	%	9.96	%	 	
Net Interest Margin	 	4.12	%	3.97	%	4.20	%	3.95	%	 	
Efficiency Ratio	 	67.55	%	63.45	%	67.01	%	62.61	%	 	
Efficiency Ratio excluding ITSRP and Restructuring Costs	 	60.39	%	63.45	%	60.68	%	61.92	%	 	

Statement of Condition Highlights and Performance Ratios	 	June 30,	 	 	
 	 	2003	 	2002 (1)	 	 	 	
 	 	 	 	 	 	 	 	
Total Assets	 	$	9,550,934	 	$	9,824,065	 	 	 	
Net Loans	 	5,333,896	 	5,250,216	 	 	 	
Total Deposits	 	7,140,849	 	6,455,981	 	 	 	
Total Shareholders’ Equity	 	913,010	 	1,191,072	 	 	 	
 	 	 	 	 	 	 	 	
Book Value Per Common Share	 	$	15.50	 	$	17.05	 	 	 	
Allowance / Loans Outstanding	 	2.52	%	2.94	%	 	 	
Average Equity / Average Assets	 	10.16	%	12.27	%	 	 	
Employees (FTE)	 	2,879	 	2,983	 	 	 	
Branches and offices	 	91	 	97	 	 	 	
 	 	 	 	 	 	 	 	
Market Price Per Share of Common Stock for the Quarter Ended:	 	 	 	 	 	 	 	
 	Closing	 	$	33.15	 	$	28.00	 	 	 	
 	High	 	$	35.90	 	$	29.86	 	 	 	
 	Low	 	$	30.75	 	$	25.45	 	 	 	

(1)  Certain 2002 information has been reclassified to conform to 2003 presentation.
 
6

 
Bank of Hawaii Corporation and Subsidiaries	
Consolidated Statements of Income (Unaudited)	Table 2	
 
 	 	Three Months Ended
June 30,	 	Six Months Ended
June 30,	 	
(dollars in thousands except per share amounts)	 	2003	 	2002 (1)	 	2003	 	2002 (1)	 	
Interest Income	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	85,954	 	$	92,441	 	$	171,727	 	$	191,086	 	
Income on Investment Securities - Held to Maturity	 	3,083	 	4,544	 	5,366	 	9,689	 	
Income on Investment Securities - Available for Sale	 	19,815	 	26,805	 	42,278	 	53,998	 	
Deposits	 	1,161	 	6,011	 	2,468	 	11,058	 	
Funds Sold and Security Resale Agreements	 	822	 	752	 	1,586	 	1,755	 	
Other	 	1,016	 	1,395	 	2,205	 	2,727	 	
Total Interest Income	 	111,851	 	131,948	 	225,630	 	270,313	 	
Interest Expense	 	 	 	 	 	 	 	 	 	
Deposits	 	13,309	 	22,166	 	27,756	 	46,144	 	
Security Repurchase Agreements	 	2,391	 	8,256	 	4,633	 	18,549	 	
Funds Purchased	 	219	 	245	 	424	 	476	 	
Short-Term Borrowings	 	25	 	289	 	49	 	938	 	
Long-Term Debt	 	5,422	 	8,055	 	11,283	 	16,374	 	
Total Interest Expense	 	21,366	 	39,011	 	44,145	 	82,481	 	
Net Interest Income	 	90,485	 	92,937	 	181,485	 	187,832	 	
Provision for Loan and Lease Losses	 	—	 	3,324	 	—	 	11,616	 	
Net Interest Income After Provision for Loan and Lease Losses	 	90,485	 	89,613	 	181,485	 	176,216	 	
Non-Interest Income	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	12,545	 	14,175	 	25,726	 	28,993	 	
Mortgage Banking	 	6,061	 	2,842	 	6,344	 	10,799	 	
Service Charges on Deposit Accounts	 	8,645	 	7,956	 	17,595	 	16,366	 	
Fees, Exchange, and Other Service Charges	 	13,473	 	13,065	 	26,462	 	25,517	 	
Investment Securities Gains	 	587	 	3	 	1,170	 	3	 	
Insurance	 	2,991	 	2,563	 	5,973	 	5,162	 	
Other	 	6,437	 	7,314	 	12,222	 	14,103	 	
Total Non-Interest Income	 	50,739	 	47,918	 	95,492	 	100,943	 	
Non-Interest Expense	 	 	 	 	 	 	 	 	 	
Salaries	 	39,232	 	37,884	 	75,691	 	77,071	 	
Pensions and Other Employee Benefits	 	8,479	 	9,391	 	18,449	 	19,387	 	
Net Occupancy Expense	 	9,628	 	9,321	 	19,241	 	18,914	 	
Net Equipment Expense	 	9,208	 	9,997	 	18,956	 	20,118	 	
Restructuring and Other Related Costs	 	—	 	—	 	—	 	1,979	 	
Information Technology Systems Replacement Project	 	10,105	 	—	 	17,522	 	—	 	
Other	 	18,742	 	22,777	 	35,735	 	43,324	 	
Total Non-Interest Expense	 	95,394	 	89,370	 	185,594	 	180,793	 	
Income Before Income Taxes	 	45,830	 	48,161	 	91,383	 	96,366	 	
Provision for Income Taxes	 	15,796	 	17,145	 	31,548	 	34,294	 	
Net Income	 	$	30,034	 	$	31,016	 	$	59,835	 	$	62,072	 	
Basic Earnings Per Share	 	$	0.50	 	$	0.43	 	$	0.99	 	$	0.85	 	
Diluted Earnings Per Share	 	$	0.48	 	$	0.42	 	$	0.95	 	$	0.83	 	
Dividends Per Share	 	$	0.19	 	$	0.18	 	$	0.38	 	$	0.36	 	
Basic Weighted Average Shares	 	59,566,970	 	72,299,850	 	60,425,943	 	72,803,414	 	
Diluted Weighted Average Shares	 	62,301,337	 	74,486,987	 	62,907,697	 	74,815,508	 	

(1)  Certain 2002 information has been reclassified to conform to 2003 presentation.
 
7

 
Bank of Hawaii Corporation and Subsidiaries	 	 	 	
Consolidated Statements of Condition (Unaudited)	 	Table 3	
 
(dollars in thousands)	 	June 30,
2003	 	December 31,
2002	 	June 30,
2002 (1)	 	
Assets	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	307,552	 	$	549,978	 	$	1,346,014	 	
Investment Securities - Held to Maturity (Market Value of $555,878, $236,016 and $323,722, respectively)	 	548,719	 	229,720	 	312,467	 	
Investment Securities - Available for Sale	 	2,140,607	 	2,287,201	 	1,806,384	 	
Funds Sold	 	250,000	 	195,000	 	125,000	 	
Loans Held for Sale	 	71,892	 	40,118	 	48,416	 	
Loans	 	5,471,870	 	5,359,004	 	5,409,195	 	
Allowance for Loan and Lease Losses	 	(137,974	)	(142,853	)	(158,979	)	
Net Loans	 	5,333,896	 	5,216,151	 	5,250,216	 	
Total Earning Assets	 	8,652,666	 	8,518,168	 	8,888,497	 	
Cash and Non-Interest Bearing Deposits	 	297,868	 	374,352	 	304,595	 	
Premises and Equipment	 	165,542	 	176,969	 	188,128	 	
Customers’ Acceptance Liability	 	1,371	 	2,680	 	1,657	 	
Accrued Interest Receivable	 	35,849	 	36,722	 	38,425	 	
Foreclosed Real Estate	 	9,285	 	9,434	 	17,223	 	
Mortgage Servicing Rights	 	24,841	 	28,820	 	30,244	 	
Goodwill	 	36,216	 	36,216	 	36,216	 	
Other Assets	 	327,296	 	333,057	 	319,080	 	
Total Assets	 	$	9,550,934	 	$	9,516,418	 	$	9,824,065	 	
Liabilities	 	 	 	 	 	 	 	
Domestic Deposits	 	 	 	 	 	 	 	
Non-Interest Bearing Demand	 	$	1,843,750	 	$	1,719,633	 	$	1,466,092	 	
Interest Bearing Demand	 	1,157,801	 	1,169,128	 	986,546	 	
Savings	 	2,754,607	 	2,535,219	 	2,292,395	 	
Time	 	1,352,413	 	1,461,780	 	1,652,805	 	
Foreign Deposits	 	 	 	 	 	 	 	
Time Due to Banks	 	—	 	1,130	 	16,777	 	
Other Savings and Time	 	32,278	 	33,271	 	41,366	 	
Total Deposits	 	7,140,849	 	6,920,161	 	6,455,981	 	
Securities Sold Under Agreements to Repurchase	 	699,256	 	735,621	 	1,257,808	 	
Funds Purchased	 	90,200	 	64,467	 	60,243	 	
Current Maturities of Long-Term Debt	 	14,000	 	114,781	 	173,259	 	
Short-Term Borrowings	 	22,424	 	33,420	 	16,935	 	
Banker’s Acceptances Outstanding	 	1,371	 	2,680	 	1,657	 	
Retirement Benefits Payable	 	62,678	 	61,385	 	37,642	 	
Accrued Interest Payable	 	9,755	 	13,731	 	23,427	 	
Taxes Payable	 	196,868	 	196,813	 	181,826	 	
Other Liabilities	 	81,988	 	82,596	 	80,158	 	
Long-Term Debt	 	318,535	 	275,004	 	344,057	 	
Total Liabilities	 	8,637,924	 	8,500,659	 	8,632,993	 	
Shareholders’ Equity	 	 	 	 	 	 	 	
Common Stock ($.01 par value); authorized 500,000,000 shares; issued / outstanding: June 2003 - 81,588,394 / 58,896,230; December 2002 - 81,294,730 / 63,015,442; June 2002 - 81,329,346 / 69,856,075	 	807	 	806	 	806	 	
Capital Surplus	 	386,565	 	372,192	 	370,947	 	
Accumulated Other Comprehensive Income	 	12,412	 	11,659	 	29,931	 	
Retained Earnings	 	1,151,623	 	1,115,910	 	1,082,421	 	
Deferred Stock Grants	 	(8,168	)	(1,424	)	(4,182	)	
Treasury Stock, at Cost (Shares: June 2003 - 22,692,164; December 2002 - 18,279,288; June 2002 - 11,473,271)	 	(630,229	)	(483,384	)	(288,851	)	
Total Shareholders’ Equity	 	913,010	 	1,015,759	 	1,191,072	 	
Total Liabilities and Shareholders’ Equity	 	$	9,550,934	 	$	9,516,418	 	$	9,824,065	 	

(1)  Certain 2002 information has been reclassified to conform to 2003 presentation.
 
8

 
Bank of Hawaii Corporation and Subsidiaries	
Consolidated Statements of Shareholders’ Equity (Unaudited)	 	Table 4	
 
(dollars in thousands)	 	Total	 	Common
Stock	 	Capital
Surplus	 	Accum.
Other
Compre-
hensive
Income	 	Retained
Earnings	 	Deferred
Stock
Grants	 	Treasury
Stock	 	Compre-hensive
Income	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2002	 	$	1,015,759	 	$	806	 	$	372,192	 	$	11,659	 	$	1,115,910	 	$	(1,424	)	$	(483,384	)	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	59,835	 	—	 	—	 	—	 	59,835	 	—	 	—	 	$	59,835	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unrealized Gain on Investment Securities	 	753	 	—	 	—	 	753	 	—	 	—	 	—	 	753	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	60,588	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common Stock Issued:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
18,147	 	Retirement Savings Plan	 	585	 	—	 	184	 	—	 	—	 	—	 	401	 	 	 	
635,660	 	Stock Option Plan	 	16,215	 	—	 	3,660	 	—	 	(1,190	)	(280	)	14,025	 	 	 	
45,518	 	Dividend Reinvestment Plan	 	1,463	 	—	 	459	 	—	 	—	 	—	 	1,004	 	 	 	
6,777	 	Directors’ Restricted Shares and Deferred Compensation Plan	 	140	 	1	 	224	 	—	 	—	 	—	 	(85	)	 	 	
286,700	 	Employees’ Restricted Shares	 	3,382	 	—	 	9,846	 	—	 	—	 	(6,464	)	—	 	 	 	
Treasury Stock Purchased (5,107,779 shares)	 	(162,190	)	—	 	—	 	—	 	—	 	—	 	(162,190	)	 	 	
Cash Dividends Paid	 	(22,932	)	—	 	—	 	—	 	(22,932	)	—	 	—	 	 	 	
Balance at June 30, 2003	 	$	913,010	 	$	807	 	$	386,565	 	$	12,412	 	$	1,151,623	 	$	(8,168	)	$	(630,229	)	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2001	 	$	1,247,012	 	$	806	 	$	367,672	 	$	22,761	 	$	1,055,424	 	$	(7,637	)	$	(192,014	)	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	62,072	 	—	 	—	 	—	 	62,072	 	—	 	—	 	$	62,072	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unrealized Gain on Investment Securities	 	7,547	 	—	 	—	 	7,547	 	—	 	—	 	—	 	7,547	 	
Foreign Currency Translation Adjustment	 	(377	)	—	 	—	 	(377	)	—	 	—	 	—	 	(377	)	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	69,242	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common Stock Issued:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
22,894	 	Retirement Savings Plan	 	632	 	—	 	119	 	—	 	—	 	—	 	513	 	 	 	
1,222,308	 	Stock Option Plan	 	25,142	 	—	 	3,727	 	—	 	(8,828	)	48	 	30,195	 	 	 	
53,227	 	Dividend Reinvestment Plan	 	1,464	 	—	 	264	 	—	 	(2	)	—	 	1,202	 	 	 	
3,605	 	Directors’ Restricted Shares and Deferred Compensation Plan	 	50	 	—	 	103	 	—	 	—	 	—	 	(53	)	 	 	
(51,500)	 	Employees’ Restricted Shares	 	2,469	 	—	 	(938	)	—	 	—	 	3,407	 	—	 	 	 	
Treasury Stock Purchased (4,610,800 shares)	 	(128,694	)	—	 	—	 	—	 	—	 	—	 	(128,694	)	 	 	
Cash Dividends Paid	 	(26,245	)	—	 	—	 	—	 	(26,245	)	—	 	—	 	 	 	
Balance at June 30, 2002	 	$	1,191,072	 	$	806	 	$	370,947	 	$	29,931	 	$	1,082,421	 	$	(4,182	)	$	(288,851	)	 	 	
 
9

 
Bank of Hawaii Corporation and Subsidiaries	
Consolidated Average Balances and Interest Rates - Taxable Equivalent Basis (Unaudited)	 	Table 5	
 
 	 	Three Months Ended
June 30, 2003	 	Three Months Ended
March 31, 2003	 	Three Months Ended (1)
June 30, 2002	 	Six Months Ended
June 30, 2003	 	
(dollars in millions)	 	Average
Balance	 	Income/
Expense	 	Yield/
Rate	 	Average
Balance	 	Income/
Expense	 	Yield/
Rate	 	Average
Balance	 	Income/
Expense	 	Yield/
Rate	 	Average
Balance	 	Income/
Expense	 	Yield/
Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Bearing Deposits	 	$	212.4	 	$	1.2	 	2.19	%	$	253.8	 	$	1.3	 	2.09	%	$	1,310.0	 	$	6.0	 	1.84	%	$	233.0	 	$	2.5	 	2.14	%	
Funds Sold	 	267.3	 	0.9	 	1.23	 	250.5	 	0.8	 	1.22	 	173.3	 	0.8	 	1.74	 	259.0	 	1.6	 	1.22	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
-  Held to Maturity	 	324.8	 	3.1	 	3.85	 	202.0	 	2.3	 	4.61	 	328.6	 	4.7	 	5.63	 	263.7	 	5.4	 	4.14	 	
-  Available for Sale	 	2,316.9	 	19.8	 	3.42	 	2,268.1	 	22.5	 	3.96	 	1,890.3	 	26.8	 	5.67	 	2,292.6	 	42.3	 	3.69	 	
Loans Held for Sale	 	81.6	 	1.1	 	5.43	 	10.1	 	0.1	 	5.16	 	65.2	 	1.1	 	6.88	 	46.0	 	1.2	 	5.38	 	
Net Loans and Lease Financing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Domestic	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
-  Commercial and Industrial	 	819.8	 	10.0	 	4.87	 	871.7	 	10.5	 	4.87	 	1,061.1	 	13.4	 	5.07	 	845.6	 	20.4	 	4.87	 	
-  Construction	 	83.0	 	0.9	 	4.50	 	115.4	 	1.4	 	5.08	 	157.5	 	2.2	 	5.72	 	99.1	 	2.4	 	4.83	 	
-  Commercial Mortgage	 	682.5	 	10.1	 	5.93	 	597.8	 	9.0	 	6.14	 	587.5	 	9.9	 	6.73	 	640.5	 	19.2	 	6.03	 	
-  Residential Mortgage	 	2,295.1	 	37.3	 	6.50	 	2,249.0	 	37.7	 	6.70	 	2,399.0	 	42.5	 	7.08	 	2,272.1	 	75.0	 	6.60	 	
-  Installment	 	535.6	 	13.6	 	10.18	 	501.9	 	12.8	 	10.36	 	392.0	 	11.0	 	11.23	 	518.8	 	26.4	 	10.27	 	
-  Home Equity	 	442.7	 	5.6	 	5.06	 	434.5	 	5.7	 	5.28	 	391.1	 	5.7	 	5.90	 	438.6	 	11.2	 	5.17	 	
-  Purchased Home Equity	 	162.3	 	2.0	 	4.96	 	180.2	 	2.6	 	5.78	 	—	 	—	 	—	 	171.2	 	4.6	 	5.39	 	
-  Lease Financing	 	482.6	 	5.3	 	4.42	 	495.6	 	5.9	 	4.81	 	502.2	 	6.6	 	5.25	 	489.1	 	11.2	 	4.62	 	
Total Domestic Loans	 	5,503.6	 	84.8	 	6.17	 	5,446.1	 	85.6	 	6.33	 	5,490.4	 	91.3	 	6.66	 	5,475.0	 	170.4	 	6.25	 	
Foreign	 	14.8	 	—	 	—	 	14.7	 	—	 	—	 	14.1	 	—	 	—	 	14.8	 	0.1	 	1.39	 	
Total Loans	 	5,518.4	 	84.8	 	6.16	 	5,460.8	 	85.6	 	6.32	 	5,504.5	 	91.3	 	6.65	 	5,489.8	 	170.5	 	6.24	 	
Other	 	75.3	 	1.0	 	5.41	 	74.6	 	1.2	 	6.47	 	99.2	 	1.3	 	5.64	 	74.9	 	2.2	 	5.93	 	
Total Earning Assets	 	8,796.7	 	111.9	 	5.09	 	8,519.9	 	113.8	 	5.38	 	9,371.1	 	132.0	 	5.64	 	8,659.0	 	225.7	 	5.23	 	
Cash and Non-interest Bearing Deposits	 	325.6	 	 	 	 	 	331.6	 	 	 	 	 	343.6	 	 	 	 	 	328.6	 	 	 	 	 	
Other Assets	 	385.9	 	 	 	 	 	391.5	 	 	 	 	 	365.3	 	 	 	 	 	388.7	 	 	 	 	 	
Total Assets	 	$	9,508.2	 	 	 	 	 	$	9,243.0	 	 	 	 	 	$	10,080.0	 	 	 	 	 	$	9,376.3	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Domestic Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
–  Demand	 	$	1,164.8	 	0.7	 	0.25	 	$	1,149.2	 	0.7	 	0.26	 	$	965.1	 	1.1	 	0.45	 	$	1,157.0	 	1.5	 	0.25	 	
–  Savings	 	2,744.1	 	4.5	 	0.65	 	2,608.2	 	4.6	 	0.71	 	2,173.5	 	7.8	 	1.44	 	2,676.5	 	9.0	 	0.68	 	
–  Time	 	1,401.4	 	8.1	 	2.31	 	1,443.3	 	9.1	 	2.55	 	1,732.0	 	12.9	 	2.98	 	1,422.2	 	17.1	 	2.43	 	
Total Domestic Deposits	 	5,310.3	 	13.3	 	1.00	 	5,200.7	 	14.4	 	1.12	 	4,870.6	 	21.8	 	1.79	 	5,255.7	 	27.6	 	1.06	 	
Foreign Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
–  Time Due to Banks	 	—	 	—	 	—	 	1.0	 	—	 	—	 	37.3	 	0.1	 	1.47	 	0.5	 	—	 	—	 	
–  Other Time and Savings	 	30.3	 	0.1	 	0.91	 	30.5	 	0.1	 	1.23	 	59.1	 	0.3	 	1.67	 	30.4	 	0.1	 	1.07	 	
Total Foreign Deposits	 	30.3	 	0.1	 	0.91	 	31.5	 	0.1	 	1.11	 	96.4	 	0.4	 	1.59	 	30.9	 	0.1	 	1.01	 	
Total Interest Bearing Deposits	 	5,340.6	 	13.4	 	1.00	 	5,232.2	 	14.5	 	1.12	 	4,967.0	 	22.2	 	1.79	 	5,286.6	 	27.7	 	1.06	 	
Short-Term Borrowings	 	810.2	 	2.6	 	1.30	 	649.8	 	2.5	 	1.54	 	1,475.9	 	8.8	 	2.39	 	730.5	 	5.1	 	1.41	 	
Long-Term Debt	 	371.5	 	5.4	 	5.85	 	390.4	 	5.8	 	6.09	 	507.1	 	8.0	 	6.37	 	380.9	 	11.3	 	5.97	 	
Total Interest Bearing Liabilities	 	6,522.3	 	21.4	 	1.31	 	6,272.4	 	22.8	 	1.47	 	6,950.0	 	39.0	 	2.25	 	6,398.0	 	44.1	 	1.39	 	
Net Interest Income	 	 	 	$	90.5	 	 	 	 	 	$	91.0	 	 	 	 	 	$	93.0	 	 	 	 	 	$	181.6	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.78	%	 	 	 	 	3.91	%	 	 	 	 	3.39	%	 	 	 	 	3.84	%	
Net Interest Margin	 	 	 	 	 	4.12	%	 	 	 	 	4.29	%	 	 	 	 	3.97	%	 	 	 	 	4.20	%	
Non-Interest Bearing Demand Deposits (Domestic)	 	1,695.3	 	 	 	 	 	1,636.8	 	 	 	 	 	1,566.7	 	 	 	 	 	1,666.2	 	 	 	 	 	
Other Liabilities	 	358.7	 	 	 	 	 	360.7	 	 	 	 	 	312.3	 	 	 	 	 	359.7	 	 	 	 	 	
Shareholders’ Equity	 	931.9	 	 	 	 	 	973.1	 	 	 	 	 	1,251.0	 	 	 	 	 	952.4	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	9,508.2	 	 	 	 	 	$	9,243.0	 	 	 	 	 	$	10,080.0	 	 	 	 	 	$	9,376.3	 	 	 	 	 	

(1)  Certain 2002 information has been reclassified to conform to 2003 presentation.
 
10

 
Bank of Hawaii Corporation and Subsidiaries	 	
Analysis of Change in Net Interest Income - Taxable Equivalent Basis (Unaudited)	 	Table 6	

(dollars in millions)	 	Three Months Ended June 30, 2003 Compared to March 31, 2003	 	 	
 	 	Volume (1)	 	Rate (1)	 	Time (1)	 	Total	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Change in Interest Income:	 	 	 	 	 	 	 	 	 	 	
Interest Bearing Deposits	 	$	(0.2	)	$	0.1	 	$	—	 	$	(0.1	)	 	
Funds Sold	 	0.1	 	—	 	—	 	0.1	 	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	
Held to Maturity	 	1.2	 	(0.4	)	—	 	0.8	 	 	
Available for Sale	 	0.4	 	(3.1	)	—	 	(2.7	)	 	
Loans Held for Sale	 	1.0	 	—	 	—	 	1.0	 	 	
Net Loans and Lease Financing (Domestic)	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(0.6	)	—	 	0.1	 	(0.5	)	 	
Construction	 	(0.3	)	(0.2	)	—	 	(0.5	)	 	
Commercial Mortgage	 	1.3	 	(0.3	)	0.1	 	1.1	 	 	
Residential Mortgage	 	0.7	 	(1.1	)	—	 	(0.4	)	 	
Installment	 	0.8	 	(0.2	)	0.2	 	0.8	 	 	
Home Equity	 	0.1	 	(0.2	)	—	 	(0.1	)	 	
Purchased Home Equity	 	(0.2	)	(0.4	)	—	 	(0.6	)	 	
Lease Financing	 	(0.2	)	(0.5	)	0.1	 	(0.6	)	 	
Total Loans	 	1.6	 	(2.9	)	0.5	 	(0.8	)	 	
Other	 	—	 	(0.2	)	—	 	(0.2	)	 	
 	 	 	 	 	 	 	 	 	 	 	
Total Change in Interest Income	 	4.1	 	(6.5	)	0.5	 	(1.9	)	 	
 	 	 	 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	 	 	 	
Interest Bearing Deposits (Domestic)	 	 	 	 	 	 	 	 	 	 	
Savings	 	0.2	 	(0.4	)	0.1	 	(0.1	)	 	
Time	 	(0.2	)	(0.9	)	0.1	 	(1.0	)	 	
Total Interest Bearing Deposits	 	—	 	(1.3	)	0.2	 	(1.1	)	 	
Short-Term Borrowings	 	0.5	 	(0.4	)	—	 	0.1	 	 	
Long-Term Debt	 	(0.3	)	(0.2	)	0.1	 	(0.4	)	 	
 	 	 	 	 	 	 	 	 	 	 	
Total Change in Interest Expense	 	0.2	 	(1.9	)	0.3	 	(1.4	)	 	
 	 	 	 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	3.9	 	$	(4.6	)	$	0.2	 	$	(0.5	)	 	

(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 or time for that category.
 
11

 
Bank of Hawaii Corporation and Subsidiaries	
Loan Portfolio Balances (Unaudited)	 	 	 	 	 	 	 	 	 	Table 7	
 
(dollars in millions)	 	June 30,
2003	 	March 31,
2003	 	December 31,
2002	 	June 30,
2002 (1)	 	
Domestic	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	808.5	 	$	824.9	 	$	875.0	 	$	993.4	 	
Commercial Mortgage	 	689.7	 	691.7	 	591.1	 	562.5	 	
Construction	 	83.6	 	86.7	 	127.5	 	148.6	 	
Lease Financing	 	416.9	 	430.4	 	427.3	 	432.7	 	
Total Commercial	 	1,998.7	 	2,033.7	 	2,020.9	 	2,137.2	 	
Consumer	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	2,222.0	 	2,305.3	 	2,131.4	 	2,361.2	 	
Home Equity	 	450.3	 	439.1	 	428.2	 	404.2	 	
Purchased Home Equity	 	145.6	 	170.9	 	185.8	 	—	 	
Other Consumer	 	554.8	 	518.5	 	493.3	 	403.2	 	
Lease Financing	 	34.0	 	33.8	 	34.5	 	37.3	 	
Total Consumer	 	3,406.7	 	3,467.6	 	3,273.2	 	3,205.9	 	
Total Domestic	 	5,405.4	 	5,501.3	 	5,294.1	 	5,343.1	 	
Foreign	 	66.5	 	64.1	 	64.9	 	66.1	 	
Total Loans	 	$	5,471.9	 	$	5,565.4	 	$	5,359.0	 	$	5,409.2	 	
 
Selected Concentrations of Credit Exposure (Unaudited)
 
 	 	June 30, 2003	 	Dec. 31, 2002	 	June 30, 2002	 	
(dollars in millions)	 	Outstanding	 	Unused
Commitments	 	Total
Exposure	 	Total
Exposure	 	Total
Exposure	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Air Transportation	 	 	 	 	 	 	 	 	 	 	 	
Regional Passenger Carriers	 	$	45.8	 	$	11.7	 	$	57.5	 	$	57.3	 	$	58.0	 	
United States Based Passenger Carriers	 	39.8	 	—	 	39.8	 	39.6	 	49.0	 	
International Based Passenger Carriers	 	31.8	 	—	 	31.8	 	32.1	 	32.0	 	
Cargo Carriers	 	14.7	 	—	 	14.7	 	15.0	 	15.0	 	
Total Air Transportation	 	$	132.1	 	$	11.7	 	$	143.8	 	$	144.0	 	$	154.0	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Guam	 	 	 	 	 	 	 	 	 	 	 	
Hotel (2)	 	$	42.8	 	$	-	 	$	42.8	 	$	44.4	 	$	43.0	 	
Other Commercial	 	148.3	 	35.5	 	183.8	 	166.0	 	230.2	 	
Consumer	 	259.0	 	6.8	 	265.8	 	257.4	 	283.3	 	
Total Guam	 	$	450.1	 	$	42.3	 	$	492.4	 	$	467.8	 	$	556.5	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Syndicated Exposure	 	$	278.3	 	$	606.8	 	$	885.1	 	$	1,002.1	 	$	1,096.2	 	
 
Exposure includes loans, leveraged leases and operating leases.

(1)               Certain 2002 information has been reclassified to conform to 2003 presentation.
(2)               A $25.0 million payment-in-full was received in mid-July reducing Hotel exposure to $17.8 million.
 
12

 
Bank of Hawaii Corporation and Subsidiaries	
Consolidated Non-Performing Assets and Accruing Loans Past Due 90 Days or More  (Unaudited)	 	Table 8	
 
(dollars in millions)	 	June 30,
2003	 	March 31,
2003	 	December 31,
2002	 	September 30,
2002 (1)	 	June 30,
2002 (1)	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Non-Performing Assets	 	 	 	 	 	 	 	 	 	 	 	
Non-Accrual Loans	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	8.8	 	$	2.4	 	$	5.9	 	$	6.4	 	$	14.4	 	
Commercial Mortgage	 	11.2	 	17.9	 	20.3	 	18.1	 	25.3	 	
Construction	 	—	 	—	 	0.5	 	0.9	 	0.7	 	
Lease Financing	 	2.5	 	3.2	 	4.1	 	5.7	 	6.9	 	
Total Commercial	 	22.5	 	23.5	 	30.8	 	31.1	 	47.3	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	10.2	 	11.5	 	13.9	 	14.3	 	14.2	 	
Home Equity	 	—	 	0.1	 	0.3	 	0.2	 	0.1	 	
Other Consumer	 	—	 	—	 	—	 	0.1	 	—	 	
Total Consumer	 	10.2	 	11.6	 	14.2	 	14.6	 	14.3	 	
Total Non-Accrual Loans	 	32.7	 	35.1	 	45.0	 	45.7	 	61.6	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Foreclosed Real Estate	 	9.3	 	9.1	 	9.4	 	17.6	 	17.2	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Non-Performing Assets	 	$	42.0	 	$	44.2	 	$	54.4	 	$	63.3	 	$	78.8	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Accruing Loans Past Due 90 Days or More	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	0.5	 	$	—	 	$	0.2	 	$	—	 	$	—	 	
Commercial Mortgage	 	—	 	0.4	 	0.3	 	—	 	—	 	
Total Commercial	 	0.5	 	0.4	 	0.5	 	—	 	—	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	1.8	 	1.6	 	0.6	 	1.4	 	0.9	 	
Home Equity	 	0.1	 	—	 	—	 	—	 	—	 	
Purchased Home Equity	 	0.1	 	—	 	—	 	—	 	—	 	
Other Consumer	 	0.4	 	2.3	 	0.7	 	0.3	 	0.5	 	
Lease Financing	 	—	 	—	 	—	 	—	 	0.1	 	
Tota1 Consumer	 	2.4	 	3.9	 	1.3	 	1.7	 	1.5	 	
Total Accruing and Past Due	 	$	2.9	 	$	4.3	 	$	1.8	 	$	1.7	 	$	1.5	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Loans	 	$	5,471.9	 	$	5,565.4	 	$	5,359.0	 	$	5,259.3	 	$	5,409.2	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Accrual Loans to Total Loans	 	0.60	%	0.63	%	0.84	%	0.87	%	1.14	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets to Total Loans, Foreclosed Real Estate and Non-Performing Loans Held for Sale	 	0.77	%	0.79	%	1.01	%	1.20	%	1.45	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets and Accruing Loans Past Due 90 Days or More to Total Loans	 	0.82	%	0.87	%	1.05	%	1.24	%	1.48	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Quarter to Quarter Changes in Non-Performing Assets	 	 	 	 	 	 	 	 	 	 	 	
Balance at Beginning of Quarter	 	$	44.2	 	$	54.4	 	$	63.3	 	$	78.8	 	$	90.7	 	
Additions	 	11.6	 	4.8	 	12.0	 	7.0	 	20.5	 	
Reductions	 	 	 	 	 	 	 	 	 	 	 	
Payments and Sales of Loans	 	(4.3	)	(5.6	)	(6.9	)	(8.5	)	(20.6	)	
Return to Accrual	 	(7.5	)	(5.6	)	(1.9	)	(9.1	)	(6.2	)	
Sales of Foreclosed Assets	 	(0.7	)	(1.1	)	(9.4	)	(1.4	)	(3.5	)	
Charge-offs	 	(1.3	)	(2.7	)	(2.7	)	(3.5	)	(2.1	)	
Total Reductions	 	(13.8	)	(15.0	)	(20.9	)	(22.5	)	(32.4	)	
 	 	 	 	 	 	 	 	 	 	 	 	
Balance at End of Quarter	 	$	42.0	 	$	44.2	 	$	54.4	 	$	63.3	 	$	78.8	 	

(1)               Certain 2002 information has been reclassified to conform to 2003 presentation.
 
13

 
Bank of Hawaii Corporation and Subsidiaries	
Consolidated Allowance for Loan and Lease Losses (Unaudited)	 	 	 	 	Table 9	 	
 
 	 	Three Months Ended	 	Six Months Ended
June 30,	 	
(dollars in millions)	 	June 30,
2003	 	March 31,
2003	 	June 30,
2002 (1)	 	2003	 	2002 (1)	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Balance at Beginning of Period	 	$	140.0	 	$	142.9	 	$	159.0	 	$	142.9	 	$	159.0	 	
Loans Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(0.6	)	(1.6	)	(2.8	)	(2.2	)	(10.1	)	
Commercial Mortgage	 	(0.4	)	—	 	(0.4	)	(0.4	)	(0.4	)	
Construction	 	—	 	(0.5	)	—	 	(0.5	)	(0.5	)	
Lease Financing	 	(0.3	)	—	 	(0.1	)	(0.3	)	(0.1	)	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	(0.7	)	(0.7	)	(1.0	)	(1.4	)	(2.4	)	
Home Equity	 	—	 	(0.1	)	(0.1	)	(0.1	)	(0.2	)	
Other Consumer	 	(3.6	)	(3.1	)	(3.0	)	(6.7	)	(6.7	)	
Lease Financing	 	—	 	(0.1	)	(0.1	)	(0.1	)	(0.2	)	
Total Charge-Offs	 	(5.7	)	(6.1	)	(7.5	)	(11.7	)	(20.6	)	
Recoveries on Loans Previously Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	1.8	 	0.6	 	2.1	 	2.4	 	2.8	 	
Commercial Mortgage	 	0.1	 	—	 	0.1	 	0.1	 	1.9	 	
Construction	 	0.1	 	0.9	 	—	 	1.0	 	—	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	0.3	 	0.2	 	0.4	 	0.5	 	0.7	 	
Home Equity	 	—	 	0.1	 	—	 	0.1	 	0.1	 	
Other Consumer	 	1.3	 	1.3	 	1.5	 	2.6	 	3.3	 	
Lease Financing	 	—	 	0.1	 	—	 	0.1	 	—	 	
Foreign	 	—	 	0.1	 	0.1	 	0.1	 	0.2	 	
Total Recoveries	 	3.6	 	3.3	 	4.2	 	6.9	 	9.0	 	
Net Loan Charge-Offs	 	(2.1	)	(2.8	)	(3.3	)	(4.9	)	(11.6	)	
Provision for Loan and Lease Losses	 	—	 	—	 	3.3	 	—	 	11.6	 	
Balance at End of Period	 	$	138.0	 	$	140.0	 	$	159.0	 	$	138.0	 	$	159.0	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans Outstanding	 	$	5,518.4	 	$	5,460.8	 	$	5,504.5	 	$	5,489.8	 	$	5,544.7	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Net Charge-Offs to Average Loans Outstanding (annualized)	 	0.15	%	0.21	%	0.24	%	0.18	%	0.42	%	
Ratio of Allowance to Loans Outstanding	 	2.52	%	2.52	%	2.94	%	2.52	%	2.94	%	

(1)     Certain 2002 information has been reclassified to conform to 2003 presentation.
 
Totals may not add due to rounding.
 
14

 
Bank of Hawaii Corporation and Subsidiaries	
Information Technology Systems Replacement Project (Unaudited)	 	 	 	 	 	Table 10	
 
(dollars in millions)	 	Professional
Fees	 	Employee
Termination
Benefits	 	Accelerated
Depreciation	 	Other
Associated
Costs (1)	 	Total	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Costs Incurred:	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended:	 	 	 	 	 	 	 	 	 	 	 	
September 30, 2002	 	$	1.9	 	$	1.0	 	$	3.2	 	$	0.5	 	$	6.6	 	
December 31, 2002	 	3.2	 	0.2	 	2.2	 	1.4	 	7.0	 	
Year Ended December 31, 2002	 	5.1	 	1.2	 	5.4	 	1.9	 	13.6	 	
Three Months Ended:	 	 	 	 	 	 	 	 	 	 	 	
March 31, 2003	 	3.5	 	0.4	 	2.0	 	1.5	 	7.4	 	
June 30, 2003	 	2.9	 	2.6	 	1.8	 	2.8	 	10.1	 	
Six Months Ended June 30, 2003	 	6.4	 	3.0	 	3.8	 	4.3	 	17.5	 	
Total Costs Incurred	 	$	11.5	 	$	4.2	 	$	9.2	 	$	6.2	 	$	31.1	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Expected Project Costs	 	$	12.6	 	$	5.3	 	$	9.2	 	$	8.4	 	$	35.5	 	

(1)               Includes contract termination, equipment, excise tax and other costs.
 
15

 
Bank of Hawaii Corporation and Subsidiaries	
Business Segment Selected Financial Information (Unaudited)	Table 11	
 
(dollars in thousands)	 	Retail
Banking	 	Commercial
Banking	 	Investment
Services
Group	 	Treasury
and Other
Corporate	 	Consolidated
Total	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended June 30, 2003	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	57,375	 	$	36,382	 	$	3,332	 	$	(6,604	)	$	90,485	 	
Provision for Loan and Lease Losses	 	(1,321	)	(1,022	)	—	 	2,343	 	—	 	
Net Interest Income After Provision for Loan and Lease Losses	 	56,054	 	35,360	 	3,332	 	(4,261	)	90,485	 	
Non-Interest Income	 	23,899	 	7,944	 	15,428	 	3,468	 	50,739	 	
 	 	79,953	 	43,304	 	18,760	 	(793	)	141,224	 	
Information Technology Systems Replacement Project	 	(368	)	—	 	(90	)	(9,647	)	(10,105	)	
Non-Interest Expense	 	(42,126	)	(23,205	)	(15,937	)	(4,021	)	(85,289	)	
Income Before Income Taxes	 	37,459	 	20,099	 	2,733	 	(14,461	)	45,830	 	
Provision for Income Taxes	 	(13,860	)	(7,319	)	(1,011	)	6,394	 	(15,796	)	
Allocated Net Income (Loss)	 	23,599	 	12,780	 	1,722	 	(8,067	)	30,034	 	
Allowance Funding Value	 	(161	)	(1,100	)	(7	)	1,268	 	—	 	
GAAP Provision	 	1,321	 	1,022	 	—	 	(2,343	)	—	 	
Economic Provision	 	(2,901	)	(3,027	)	(112	)	(5	)	(6,045	)	
Tax Effect of Adjustments	 	644	 	1,149	 	44	 	400	 	2,237	 	
Income Before Capital Charge	 	22,502	 	10,824	 	1,647	 	(8,747	)	26,226	 	
Capital Charge	 	(5,494	)	(5,350	)	(1,512	)	(13,275	)	(25,631	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	17,008	 	$	5,474	 	$	135	 	$	(22,022	)	$	595	 	
 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	45	%	22	%	12	%	(7	)%	13	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets at June 30, 2003	 	$	3,482,754	 	$	2,207,816	 	$	127,894	 	$	3,732,470	 	$	9,550,934	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended June 30, 2002	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	48,996	 	$	34,705	 	$	3,140	 	$	6,096	 	$	92,937	 	
Provision for Loan and Lease Losses	 	(549	)	(3,096	)	—	 	321	 	(3,324	)	
Net Interest Income After Provision for Loan and Lease Losses	 	48,447	 	31,609	 	3,140	 	6,417	 	89,613	 	
Non-Interest Income	 	18,435	 	8,752	 	17,376	 	3,355	 	47,918	 	
 	 	66,882	 	40,361	 	20,516	 	9,772	 	137,531	 	
Non-Interest Expense	 	(44,512	)	(24,372	)	(18,059	)	(2,427	)	(89,370	)	
Income Before Income Taxes	 	22,370	 	15,989	 	2,457	 	7,345	 	48,161	 	
Provision for Income Taxes	 	(8,277	)	(5,834	)	(909	)	(2,125	)	(17,145	)	
Allocated Net Income	 	14,093	 	10,155	 	1,548	 	5,220	 	31,016	 	
Allowance Funding Value	 	(204	)	(1,597	)	(4	)	1,805	 	—	 	
GAAP Provision	 	549	 	3,096	 	—	 	(321	)	3,324	 	
Economic Provision	 	(2,905	)	(3,667	)	(124	)	—	 	(6,696	)	
Tax Effect of Adjustments	 	947	 	802	 	47	 	(548	)	1,248	 	
Income Before Capital Charge	 	12,480	 	8,789	 	1,467	 	6,156	 	28,892	 	
Capital Charge	 	(5,248	)	(6,044	)	(1,620	)	(21,490	)	(34,402	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	7,232	 	$	2,745	 	$	(153	)	$	(15,334	)	$	(5,510	)	
 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	26	%	16	%	10	%	28	%	10	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets at June 30, 2002	 	$	3,217,645	 	$	2,392,041	 	$	115,119	 	$	4,099,260	 	$	9,824,065	 	
 
16

 
Table 11a
 
(dollars in thousands)	 	Retail
Banking	 	Commercial
Banking	 	Investment
Services
Group	 	Treasury
and Other
Corporate	 	Consolidated
Total	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Six Months Ended June 30, 2003	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	112,359	 	$	72,769	 	$	7,302	 	$	(10,945	)	$	181,485	 	
Provision for Loan and Lease Losses	 	(2,169	)	(3,173	)	—	 	5,342	 	—	 	
Net Interest Income After Provision for Loan and Lease Losses	 	110,190	 	69,596	 	7,302	 	(5,603	)	181,485	 	
Non-Interest Income	 	41,285	 	16,359	 	31,107	 	6,741	 	95,492	 	
 	 	151,475	 	85,955	 	38,409	 	1,138	 	276,977	 	
Information Technology Systems Replacement Project	 	(950	)	(23	)	(334	)	(16,215	)	(17,522	)	
Non-Interest Expense	 	(82,795	)	(45,924	)	(31,841	)	(7,512	)	(168,072	)	
Income Before Income Taxes	 	67,730	 	40,008	 	6,234	 	(22,589	)	91,383	 	
Provision for Income Taxes	 	(25,060	)	(14,589	)	(2,307	)	10,408	 	(31,548	)	
Allocated Net Income (Loss)	 	42,670	 	25,419	 	3,927	 	(12,181	)	59,835	 	
Allowance Funding Value	 	(313	)	(2,241	)	(17	)	2,571	 	—	 	
GAAP Provision	 	2,169	 	3,173	 	—	 	(5,342	)	—	 	
Economic Provision	 	(5,609	)	(6,086	)	(244	)	(10	)	(11,949	)	
Tax Effect of Adjustments	 	1,389	 	1,907	 	97	 	1,028	 	4,421	 	
Income Before Capital Charge	 	40,306	 	22,172	 	3,763	 	(13,934	)	52,307	 	
Capital Charge	 	(10,886	)	(10,728	)	(3,030	)	(27,739	)	(52,383	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	29,420	 	$	11,444	 	$	733	 	$	(41,673	)	$	(76	)	
 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	41	%	23	%	14	%	(5	)%	13	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets at June 30, 2003	 	$	3,482,754	 	$	2,207,816	 	$	127,894	 	$	3,732,470	 	$	9,550,934	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Six Months Ended June 30, 2002	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	98,552	 	$	70,335	 	$	6,140	 	$	12,805	 	$	187,832	 	
Provision for Loan and Lease Losses	 	(2,491	)	(9,606	)	—	 	481	 	(11,616	)	
Net Interest Income After Provision for Loan and Lease Losses	 	96,061	 	60,729	 	6,140	 	13,286	 	176,216	 	
Non-Interest Income	 	42,487	 	17,373	 	35,200	 	5,883	 	100,943	 	
 	 	138,548	 	78,102	 	41,340	 	19,169	 	277,159	 	
Restructuring and Other Related Costs	 	—	 	—	 	—	 	(1,979	)	(1,979	)	
Non-Interest Expense	 	(90,826	)	(49,327	)	(34,119	)	(4,542	)	(178,814	)	
Income Before Income Taxes	 	47,722	 	28,775	 	7,221	 	12,648	 	96,366	 	
Provision for Income Taxes	 	(17,657	)	(10,489	)	(2,672	)	(3,476	)	(34,294	)	
Allocated Net Income	 	30,065	 	18,286	 	4,549	 	9,172	 	62,072	 	
Allowance Funding Value	 	(471	)	(3,149	)	(11	)	3,631	 	—	 	
GAAP Provision	 	2,491	 	9,606	 	—	 	(481	)	11,616	 	
Economic Provision	 	(5,409	)	(7,905	)	(251	)	(3	)	(13,568	)	
Tax Effect of Adjustments	 	1,254	 	536	 	97	 	(1,165	)	722	 	
Income Before Capital Charge	 	27,930	 	17,374	 	4,384	 	11,154	 	60,842	 	
Capital Charge	 	(10,571	)	(12,603	)	(3,121	)	(42,856	)	(69,151	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	17,359	 	$	4,771	 	$	1,263	 	$	(31,702	)	$	(8,309	)	
 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	29	%	15	%	16	%	26	%	10	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets at June 30, 2002	 	$	3,217,645	 	$	2,392,041	 	$	115,119	 	$	4,099,260	 	$	9,824,065	 	
 
17

 
Bank of Hawaii Corporation and Subsidiaries	
Quarterly Summary of Selected Consolidated Financial Data (Unaudited)	 	Table 12	
 
 	 	Three Months Ended (1)	 	
(dollars in thousands except per share amounts)	 	June 30,
2003	 	March 31,
2003	 	December 31,
2002	 	September 30,
2002	 	June 30,
2002	 	March 31,
2002	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Quarterly Operating Results	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	85,954	 	$	85,773	 	$	85,945	 	$	89,335	 	$	92,441	 	$	98,645	 	
Income on Investment Securities - Held to Maturity	 	3,083	 	2,283	 	3,122	 	3,963	 	4,544	 	5,145	 	
Income on Investment Securities - Available for Sale	 	19,815	 	22,463	 	24,088	 	26,175	 	26,805	 	27,193	 	
Deposits	 	1,161	 	1,307	 	3,578	 	5,384	 	6,011	 	5,047	 	
Funds Sold and Security Resale Agreements	 	822	 	764	 	834	 	914	 	752	 	1,003	 	
Other	 	1,016	 	1,189	 	1,312	 	1,575	 	1,395	 	1,332	 	
Total Interest Income	 	111,851	 	113,779	 	118,879	 	127,346	 	131,948	 	138,365	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	13,309	 	14,447	 	17,657	 	20,547	 	22,166	 	23,978	 	
Security Repurchase Agreements	 	2,391	 	2,242	 	4,585	 	7,039	 	8,256	 	10,293	 	
Funds Purchased	 	219	 	205	 	255	 	299	 	245	 	231	 	
Short-Term Borrowings	 	25	 	24	 	217	 	334	 	289	 	649	 	
Long-Term Debt	 	5,422	 	5,861	 	5,947	 	6,946	 	8,055	 	8,319	 	
Total Interest Expense	 	21,366	 	22,779	 	28,661	 	35,165	 	39,011	 	43,470	 	
Net Interest Income	 	90,485	 	91,000	 	90,218	 	92,181	 	92,937	 	94,895	 	
Provision for Loan and Lease Losses	 	—	 	—	 	—	 	—	 	3,324	 	8,292	 	
Net Interest Income After Provision for Loan and Lease Losses	 	90,485	 	91,000	 	90,218	 	92,181	 	89,613	 	86,603	 	
Non-Interest Income	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	12,545	 	13,181	 	13,085	 	13,655	 	14,175	 	14,818	 	
Mortgage Banking	 	6,061	 	283	 	4,398	 	3,669	 	2,842	 	7,957	 	
Service Charges on Deposit Accounts	 	8,645	 	8,950	 	8,326	 	7,925	 	7,956	 	8,410	 	
Fees, Exchange, and Other Service Charges	 	13,473	 	12,989	 	12,963	 	13,114	 	13,065	 	12,452	 	
Investment Securities Gains	 	587	 	583	 	612	 	—	 	3	 	—	 	
Insurance	 	2,991	 	2,982	 	3,099	 	2,677	 	2,563	 	2,599	 	
Other	 	6,437	 	5,785	 	7,872	 	5,997	 	7,314	 	6,789	 	
Total Non-Interest Income	 	50,739	 	44,753	 	50,355	 	47,037	 	47,918	 	53,025	 	
Non-Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	
Salaries	 	39,232	 	36,459	 	38,462	 	37,994	 	37,884	 	39,187	 	
Pensions and Other Employee Benefits	 	8,479	 	9,970	 	6,272	 	7,377	 	9,391	 	9,996	 	
Net Occupancy Expense	 	9,628	 	9,613	 	10,638	 	9,597	 	9,321	 	9,593	 	
Net Equipment Expense	 	9,208	 	9,748	 	11,077	 	10,058	 	9,997	 	10,121	 	
Restructuring and Other Related Costs	 	—	 	—	 	385	 	—	 	—	 	1,979	 	
Information Technology Systems Replacement Project	 	10,105	 	7,417	 	7,052	 	6,576	 	—	 	—	 	
Other	 	18,742	 	16,993	 	22,827	 	20,141	 	22,777	 	20,547	 	
Total Non-Interest Expense	 	95,394	 	90,200	 	96,713	 	91,743	 	89,370	 	91,423	 	
Income Before Income Taxes	 	45,830	 	45,553	 	43,860	 	47,475	 	48,161	 	48,205	 	
Provision for Income Taxes	 	15,796	 	15,752	 	14,952	 	17,275	 	17,145	 	17,149	 	
Net Income	 	$	30,034	 	$	29,801	 	$	28,908	 	$	30,200	 	$	31,016	 	$	31,056	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic Earnings Per Share	 	$	0.50	 	$	0.49	 	$	0.45	 	$	0.44	 	$	0.43	 	$	0.42	 	
Diluted Earnings Per Share	 	$	0.48	 	$	0.47	 	$	0.44	 	$	0.43	 	$	0.42	 	$	0.41	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets	 	9,550,934	 	9,410,210	 	9,516,418	 	9,702,700	 	9,824,065	 	10,245,021	 	
Net Loans	 	5,333,896	 	5,425,343	 	5,216,151	 	5,104,857	 	5,250,216	 	5,442,601	 	
Total Deposits	 	7,140,849	 	6,987,331	 	6,920,161	 	6,627,673	 	6,455,981	 	6,543,781	 	
Total Shareholders’ Equity	 	913,010	 	952,007	 	1,015,759	 	1,100,706	 	1,191,072	 	1,265,907	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.27	%	1.31	%	1.20	%	1.22	%	1.23	%	1.21	%	
Return on Average Equity	 	12.93	%	12.42	%	10.72	%	10.40	%	9.94	%	9.97	%	
Efficiency Ratio	 	67.55	%	66.44	%	68.80	%	65.90	%	63.45	%	61.81	%	
Efficiency Ratio excluding ITSRP and Restructuring Costs	 	60.39	%	60.98	%	63.51	%	61.18	%	63.45	%	60.47	%	

(1)               Certain 2002 information has been reclassified to conform to 2003 presentation.
 
18