UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
 
FORM 8-K
 
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported) October 24, 2011
 
BANK OF HAWAII CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware
(State of Incorporation)	 	1-6887
(Commission
File Number)	 	99-0148992
(IRS Employer
Identification No.)	
 	 	 	 	 	
130 Merchant Street, Honolulu, Hawaii
(Address of principal executive offices)	 	96813
(Zip Code)	
 
(Registrant’s telephone number, including area code) (888) 643-3888
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o           Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o           Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o           Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o           Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

 

 
Item 2.02.              Results of Operations and Financial Condition.
 
On October 24, 2011, Bank of Hawaii Corporation (the “Company”) announced its results of operations for the quarter ended September 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                          October 24, 2011 Press Release: Bank of Hawaii Corporation Third 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: October 24, 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 Third Quarter 2011 Financial Results
 
·           Diluted Earnings Per Share $0.92
·           Net Income for the Quarter $43.3 Million
·           Board of Directors Declares Dividend of $0.45 Per Share
 
FOR IMMEDIATE RELEASE
 
HONOLULU, HI (October 24, 2011) — Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.92 for the third quarter of 2011, up $0.18 per share from diluted earnings per share of $0.74 in the previous quarter.  Net income for the third quarter of 2011 was $43.3 million, up $8.2 million compared to net income of $35.1 million in the second quarter of 2011.
 
Deposit growth remained strong during the third quarter, increasing to above $10.0 billion at September 30, 2011.  Loan and lease balances were flat for the quarter as growth in commercial lending was offset by weak consumer loan demand.  The allowance for loan and lease losses decreased by $1.6 million to $143.4 million and represents 2.68 percent of outstanding loans and leases.
 
“Bank of Hawaii Corporation had good results for the third quarter of 2011,” said Peter S. Ho, Chairman, President, and CEO.  “We continued to maintain strong expense control in light of the challenging environment.  Mortgage activity was strong during the quarter due to low interest rates.  Our overall credit quality remains stable reflecting the slowly improving Hawaii economy.  Our continued focus on capital and risk management has resulted in a strong balance sheet, an outstanding dividend yield, and increased earnings per share. ”
 
The return on average assets for the third quarter of 2011 was 1.31 percent, up from 1.09 percent in the second quarter.  The return on average equity for the third quarter of 2011 was 16.80 percent compared to 13.86 percent for the previous quarter.  The efficiency ratio for the third quarter of 2011 was 56.87 percent, an improvement from 63.81 percent in the previous quarter.
 
- more -

 

 
For the nine months ended September 30, 2011, net income was $120.8 million compared to net income of $143.4 million for the same period last year.  Diluted earnings per share were $2.54 for the nine-month period in 2011, compared with $2.96 for the same period in 2010.  The year-to-date return on average assets was 1.24 percent compared to 1.52 percent for the same period in 2010.  The year-to-date return on average equity was 15.85 percent, down from 19.28 percent for the nine months ended September 30, 2010.  The efficiency ratio for the nine-month period ended September 30, 2011 was 58.86 percent compared with 50.10 percent for the same period last year.
 
Results for the nine months ended September 30, 2011 included $6.1 million in net gains on investment securities and a $2.0 million gain related to a contingent payment from the sale of the Company’s proprietary mutual funds in 2010.  These gains were offset by a litigation settlement of $9.0 million, $2.3 million for employee stock incentives, and a donation of $2.0 million to the Bank of Hawaii Foundation.  Results for the same period in 2010 included $42.8 million in net gains on investment securities, interest recoveries of $2.8 million, a net gain of $2.9 million on the sale of the Company’s Pacific Capital Funds, and a net gain of $0.9 million related to the sale of the Company’s retail insurance brokerage business.  These gains were partially offset by $5.2 million in early termination costs related to prepayment of debt and $3.3 million for employee cash grants.  Details of these items are included in Table 2.
 
Financial Highlights
 
Net interest income, on a taxable equivalent basis, for the third quarter of 2011 was $97.1 million, down $0.8 million from net interest income of $97.9 million in the second quarter of 2011, and down $1.7 million from net interest income of $98.8 million in the third quarter of 2010.  For the nine months ended September 30, 2011, net interest income, on a taxable-equivalent basis, was $295.1 million compared to $310.9 million for the same period in 2010.  Analyses of the changes in net interest income are included in Tables 7a, 7b and 7c.
 
The net interest margin was 3.09 percent for the third quarter of 2011, a decrease of 7 basis points from the net interest margin of 3.16 percent in the second quarter of 2011, and an 18 basis point decrease from the net interest margin of 3.27 percent in the third quarter of 2010.   For the nine months ended September 30, 2011, the net interest margin was 3.16 percent compared to 3.50 percent for the same nine months in 2010.
 
During the third quarter of 2011 the provision for credit losses was $2.2 million, or $1.6 million less than net charge-offs.  During the second quarter of 2011 the provision for credit losses totaled $3.6 million, or $2.4 million less than net charge-offs.   During the third quarter of 2010 the provision for credit losses of $13.4 million equaled net charge-offs.  For the nine months ended September 30, 2011, the provision for credit losses was $10.5 million compared to $50.0 million for the same period in 2010.
 
Noninterest income was $50.9 million for the third quarter of 2011, an increase of $1.4 million compared to noninterest income of $49.5 million in the second quarter of 2011, and down $2.2 million from noninterest income of $63.1 million in the third quarter of 2010.  Noninterest income in the third quarter of 2011 included the previously mentioned $2.0 million gain related to a contingent payment from the sale of the Company’s proprietary mutual funds in 2010.  Noninterest income in the third quarter of 2010 included net securities gains of $7.9 million, $3.8 million related to the Pacific Capital Funds and insurance business sales, and a loss of $1.4 million related to the disposition of a leveraged lease.
 
2

 
Noninterest expense was $84.0 million in the third quarter of 2011, down $9.8 million from $93.8 million in the previous quarter, and down $5.9 million from $89.9 million in the same quarter last year.  Noninterest expense in the third quarter of 2011 included a previously mentioned donation of $2.0 million to the Bank of Hawaii Foundation.  Noninterest expense in the second quarter of 2011 included a litigation settlement of $9.0 million and $2.0 million for employee stock incentives.  Noninterest expense in the third quarter of 2010 included $5.2 million for the early termination of debt.  An analysis of salary and benefit expenses is included in Table 8.
 
The higher effective tax rate for the third quarter of 2011 compared to the same period in 2010 was primarily due to the sale of the Company’s equity interest in two leveraged leases, which resulted in a $4.4 million credit to the provision for income taxes in the third quarter of 2010.  The effective tax rate for the nine-month period ended September 30, 2011 was 30.54 percent compared with 30.56 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 reflected the improving Hawaii economy during the third quarter of 2011.  Total non-performing assets increased to $37.8 million at September 30, 2011 primarily due to the addition of one commercial loan.  As a percentage of total loans and leases, including loans held for sale and foreclosed real estate, non-performing assets were 0.70 percent at September 30, 2011, up from 0.64 percent as of June 30, 2011, and down from 0.85 percent at September 30, 2010.
 
Accruing consumer loans and leases past due 90 days or more were $10.9 million at September 30, 2011, up from $7.8 million at June 30, 2011 and $10.5 million at September 30, 2010.  Residential first mortgage and home equity delinquencies continue to be centered on neighbor islands.   There were no accruing commercial loans or leases past due 90 days or more at September 30, 2011.  Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $33.1 million at September 30, 2011 and primarily comprised of residential mortgage 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 were $3.8 million or 0.28 percent annualized of total average loans and leases outstanding.  Total charge-offs of $10.8 million were partially offset by total recoveries of $7.0 million.  Net charge-offs during the second quarter of 2011 were $6.0 million or 0.45 percent annualized, and were comprised of charge-offs of $9.0 million and recoveries of $3.0 million.  Net charge-offs in the third quarter of 2010 were $13.4 million, or 0.99 percent annualized, and were comprised of charge-offs of $16.3 million and recoveries of $2.9 million.  Net charge-offs during the nine months ended September 30, 2011 were $14.4 million or 0.36 percent annualized compared with $46.3 million or 1.12 percent annualized for the same period in 2010.
 
3

 
The allowance for loan and lease losses was $143.4 million at September 30, 2011, down $1.6 million from the allowance for loan and lease losses of $145.0 million at June 30, 2011 and $147.4 million at September 30, 2010.  The ratio of the allowance for loan and lease losses to total loans and leases was 2.68 percent at September 30, 2011.  The reserve for unfunded commitments at September 30, 2011 was unchanged at $5.4 million.  Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 11.
 
Other Financial Highlights
 
Total assets were $13.30 billion at September 30, 2011, up from total assets of $13.16 billion at June 30, 2011, and up from $12.72 billion at September 30, 2010.  Average total assets were $13.13 billion during the third quarter of 2011, up from average assets of $12.97 billion during the previous quarter, and up from $12.80 billion during the third quarter last year.
 
Total loans and leases were $5.35 billion at September 30, 2011, down slightly from June 30, 2011, and up from $5.31 billion at September 30, 2010.  Average total loans and leases were $5.34 billion during the third quarter of 2011, up from $5.33 billion during the previous quarter, and down from $5.37 billion during the third quarter last year.  Loan and lease portfolio balances, including the higher risk loans outstanding, are summarized in Table 9.
 
Deposit growth remained strong during the third quarter of 2011.  Total deposits were $10.01 billion at September 30, 2011, up from $9.98 billion at June 30, 2011, and up from $9.60 billion at September 30, 2010.  Average total deposits were $9.87 billion in the third quarter of 2011, up from average deposits of $9.79 billion during the previous quarter, and up from $9.58 billion during the third quarter last year.  Deposit balances are summarized in Tables 6a, 6b, and 9.
 
As a result of strong deposit growth and weak consumer loan demand, the investment securities portfolio increased to $6.97 billion at September 30, 2011, up from $6.62 billion at June 30, 2011, and up from $6.36 billion at September 30, 2010.
 
During the third quarter of 2011, the Company repurchased 722.9 thousand shares of common stock at a total cost of $30.0 million under its share repurchase program.  The average cost was $41.52 per share repurchased.  From the beginning of the share repurchase program initiated during July 2001 through September 30, 2011, the Company has repurchased 47.8 million shares and returned over $1.7 billion to shareholders at an average cost of $35.90 per share.  From October 1 through October 21, 2011, the Company repurchased an additional 162.1 thousand shares of common stock at an average cost of $37.89 per share repurchased.  Remaining buyback authority under the share repurchase program was $96.9 million at October 21, 2011.
 
Total shareholders’ equity was $1.02 billion at September 30, 2011, up from $1.00 billion at June 30, 2011 and down from $1.04 billion at September 30, 2010.  The ratio of tangible common equity to risk-weighted assets was 18.90 percent at September 30, 2011, compared with 18.95 percent at June 30, 2011 and 19.50 percent at September 30, 2010.  The Tier 1 leverage ratio at September 30, 2011 was 6.95 percent, down from 7.07 percent at June 30, 2011 and 7.15 percent at September 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 December 14, 2011 to shareholders of record at the close of business on November 30, 2011.
 
4

 
Hawaii Economy
 
Hawaii’s economy continued to improve during the third quarter of 2011 primarily due to increasing visitor arrivals and spending.  For the first eight months of 2011, visitor arrivals increased 2.5 percent and visitor spending increased by 14.1 percent compared to the same period in 2010.  Total Japanese visitor expenditures increased 4.9 percent for the first eight months of 2011, despite a decline in Japanese arrivals of 8.2 percent compared to the same period in 2010.  During 2011, hotel occupancy and revenue per available room have generally shown signs of improvement as well.  Overall, state employment has been stable and the statewide seasonally-adjusted unemployment rate was 6.4 percent at the end of September 2011, compared with 9.1 percent nationally.  The median sales price for single-family homes on Oahu has remained flat year-to-date through September 2011, although the volume of single-family home sales began to increase in the third quarter of 2011 compared to the same period in 2010.
 
Conference Call Information
 
The Company will review its third quarter 2011 financial results today at 8:00 a.m. Hawaii Time.  The conference call will be accessible via teleconference and the Investor Relations link of Bank of Hawaii Corporation’s web site, www.boh.com.  Conference call participants in the United States should dial 888-268-4176 and international participants should dial 617-597-5493.  Use the pass code “Bank of Hawaii” to access the call.  A replay of the call will be available for one week beginning Monday, October 24, 2011 by dialing 888-286-8010 in the United States or 617-801-6888 internationally and entering the pass code number 41254996 when prompted.  A replay will also be available via the Investor Relations link of the Company’s web site, www.boh.com.
 
Forward-Looking Statements
 
This news release, and other statements made by the Company in connection with it may contain “forward-looking statements”, such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations.  Do not unduly rely on forward-looking statements.  Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation’s Annual Report on Form 10-K for the year ended December 31, 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	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands, except per share amounts)	 	2011	 	2011	 	2010	 	2011	 	2010	 	
For the Period:	 	 	 	 	 	 	 	 	 	 	 	
Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	96,766	 	$	97,499	 	$	98,626	 	$	293,962	 	$	310,207	 	
Provision for Credit Losses	 	2,180	 	3,600	 	13,359	 	10,471	 	50,009	 	
Total Noninterest Income	 	50,863	 	49,463	 	63,125	 	154,248	 	203,781	 	
Total Noninterest Expense	 	83,955	 	93,774	 	89,890	 	263,811	 	257,514	 	
Net Income	 	43,306	 	35,148	 	44,064	 	120,814	 	143,364	 	
Basic Earnings Per Share	 	0.93	 	0.74	 	0.91	 	2.55	 	2.98	 	
Diluted Earnings Per Share	 	0.92	 	0.74	 	0.91	 	2.54	 	2.96	 	
Dividends Declared Per Share	 	0.45	 	0.45	 	0.45	 	1.35	 	1.35	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.31	%	1.09	%	1.37	%	1.24	%	1.52	%	
Return on Average Shareholders’ Equity	 	16.80	 	13.86	 	16.64	 	15.85	 	19.28	 	
Efficiency Ratio1	 	56.87	 	63.81	 	55.57	 	58.86	 	50.10	 	
Operating Leverage2	 	19.71	 	(21.25	)	(17.29	)	(28.10	)	9.47	 	
Net Interest Margin3	 	3.09	 	3.16	 	3.27	 	3.16	 	3.50	 	
Dividend Payout Ratio4	 	48.39	 	60.81	 	49.45	 	52.94	 	45.30	 	
Average Shareholders’ Equity to Average Assets	 	7.79	 	7.84	 	8.21	 	7.83	 	7.90	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Balances	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases	 	$	5,340,406	 	$	5,326,123	 	$	5,368,177	 	$	5,326,209	 	$	5,524,672	 	
Average Assets	 	13,125,077	 	12,967,232	 	12,797,219	 	13,019,898	 	12,594,282	 	
Average Deposits	 	9,871,750	 	9,790,349	 	9,576,936	 	9,845,269	 	9,452,406	 	
Average Shareholders’ Equity	 	1,022,585	 	1,016,813	 	1,050,535	 	1,019,409	 	994,319	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Market Price Per Share of Common Stock	 	 	 	 	 	 	 	 	 	 	 	
Closing	 	$	36.40	 	$	46.52	 	$	44.92	 	$	36.40	 	$	44.92	 	
High	 	47.10	 	49.26	 	51.60	 	49.26	 	54.10	 	
Low	 	35.30	 	44.90	 	43.77	 	35.30	 	41.60	 	
 
 	 	 	 	September 30,
2011	 	June 30,
2011	 	December 31,
2010	 	September 30,
2010	 	
As of Period End:	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	 	 	$	5,348,472	 	$	5,351,473	 	$	5,335,792	 	$	5,312,054	 	
Total Assets	 	 	 	13,304,758	 	13,161,204	 	13,126,787	 	12,716,603	 	
Total Deposits	 	 	 	10,009,013	 	9,979,034	 	9,888,995	 	9,602,462	 	
Long-Term Debt	 	 	 	30,705	 	30,714	 	32,652	 	40,292	 	
Total Shareholders’ Equity	 	 	 	1,017,775	 	1,003,450	 	1,011,133	 	1,039,561	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Asset Quality	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	 	 	$	143,410	 	$	144,976	 	$	147,358	 	$	147,358	 	
Non-Performing Assets	 	 	 	37,770	 	34,156	 	37,786	 	45,174	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Financial Ratios	 	 	 	 	 	 	 	 	 	 	 	
Allowance to Loans and Leases Outstanding	 	 	 	2.68	%	2.71	%	2.76	%	2.77	%	
Tier 1 Capital Ratio	 	 	 	17.57	 	17.96	 	18.28	 	17.71	 	
Total Capital Ratio	 	 	 	18.83	 	19.23	 	19.55	 	18.98	 	
Tier 1 Leverage Ratio	 	 	 	6.95	 	7.07	 	7.15	 	7.15	 	
Total Shareholders’ Equity to Total Assets	 	 	 	7.65	 	7.62	 	7.70	 	8.17	 	
Tangible Common Equity to Tangible Assets 5	 	 	 	7.43	 	7.40	 	7.48	 	7.95	 	
Tangible Common Equity to Risk-Weighted Assets 5	 	 	 	18.90	 	18.95	 	19.29	 	19.50	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Non-Financial Data	 	 	 	 	 	 	 	 	 	 	 	
Full-Time Equivalent Employees	 	 	 	2,381	 	2,405	 	2,399	 	2,428	 	
Branches and Offices	 	 	 	82	 	82	 	82	 	83	 	
ATMs	 	 	 	508	 	508	 	502	 	492	 	

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  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	
 
(dollars in thousands)	 	September 30,
2011	 	June 30,
2011	 	December 31,
2010	 	September 30,
2010	 	
 	 	 	 	 	 	 	 	 	 	
Total Shareholders’ Equity	 	$	1,017,775	 	$	1,003,450	 	$	1,011,133	 	$	1,039,561	 	
Less:   Goodwill	 	31,517	 	31,517	 	31,517	 	31,517	 	
Intangible Assets	 	96	 	108	 	154	 	177	 	
Tangible Common Equity	 	$	986,162	 	$	971,825	 	$	979,462	 	$	1,007,867	 	
 	 	 	 	 	 	 	 	 	 	
Total Assets	 	$	13,304,758	 	$	13,161,204	 	$	13,126,787	 	$	12,716,603	 	
Less:   Goodwill	 	31,517	 	31,517	 	31,517	 	31,517	 	
Intangible Assets	 	96	 	108	 	154	 	177	 	
Tangible Assets	 	$	13,273,145	 	$	13,129,579	 	$	13,095,116	 	$	12,684,909	 	
 	 	 	 	 	 	 	 	 	 	
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements	 	$	5,218,651	 	$	5,128,368	 	$	5,076,909	 	$	5,167,838	 	
 	 	 	 	 	 	 	 	 	 	
Total Shareholders’ Equity to Total Assets	 	7.65	%	7.62	%	7.70	%	8.17	%	
Tangible Common Equity to Tangible Assets (Non-GAAP)	 	7.43	%	7.40	%	7.48	%	7.95	%	
 	 	 	 	 	 	 	 	 	 	
Tier 1 Capital Ratio	 	17.57	%	17.96	%	18.28	%	17.71	%	
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)	 	18.90	%	18.95	%	19.29	%	19.50	%	

 

 
Bank of  Hawaii Corporation and Subsidiaries
Net Significant Income (Expense) Items	 	Table 2	
 
 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	2011	 	2010	 	
Cash Basis Interest Recoveries	 	$	—	 	$	—	 	$	—	 	$	—	 	$	2,832	 	
Investment Securities Gains, Net	 	—	 	—	 	7,877	 	6,084	 	42,849	 	
Gain on Mutual Fund Sale	 	1,956	 	—	 	2,852	 	1,956	 	2,852	 	
Gains (Loss) on Disposal of Leased Equipment	 	—	 	—	 	(1,449	)	—	 	(260	)	
Gain on Sale of Insurance Subsidiary	 	—	 	—	 	904	 	—	 	904	 	
Decrease (Increase) in Allowance for Loan and Lease Losses	 	1,566	 	2,382	 	—	 	3,948	 	(3,700	)	
Cash Grants for the Purchase of Company Stock	 	—	 	—	 	—	 	—	 	(3,250	)	
Bank of Hawaii Charitable Foundation	 	(2,000	)	—	 	—	 	(2,000	)	—	 	
Legal Settlement Related to OD Claims	 	—	 	(9,000	)	—	 	(9,000	)	—	 	
REPO Early Termination Expense	 	—	 	—	 	(5,189	)	—	 	(5,189	)	
Significant Income (Expense) Items Before the Provision (Benefit) for Income Taxes	 	1,522	 	(6,618	)	4,995	 	988	 	37,038	 	
Income Tax Impact Related to Lease Transactions	 	—	 	—	 	(4,003	)	—	 	(3,541	)	
Income Tax Impact	 	533	 	(2,316	)	2,256	 	346	 	13,055	 	
Net Significant Income (Expense) Items	 	$	989	 	$	(4,302	)	$	6,742	 	$	642	 	$	27,524	 	

 
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income	 	Table 3	
 
 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands, except per share amounts)	 	2011	 	2011	 	2010	 	2011	 	2010	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	65,344	 	$	65,542	 	$	70,198	 	$	197,479	 	$	219,466	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	23,097	 	23,490	 	40,775	 	84,256	 	129,605	 	
Held-to-Maturity	 	20,344	 	20,553	 	1,553	 	48,530	 	5,116	 	
Deposits	 	6	 	2	 	5	 	6	 	21	 	
Funds Sold	 	160	 	297	 	211	 	708	 	916	 	
Other	 	279	 	279	 	278	 	837	 	832	 	
Total Interest Income	 	109,230	 	110,163	 	113,020	 	331,816	 	355,956	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	4,561	 	4,792	 	7,041	 	14,585	 	23,278	 	
Securities Sold Under Agreements to Repurchase	 	7,400	 	7,338	 	6,670	 	21,779	 	19,571	 	
Funds Purchased	 	4	 	5	 	10	 	15	 	23	 	
Long-Term Debt	 	499	 	529	 	673	 	1,475	 	2,877	 	
Total Interest Expense	 	12,464	 	12,664	 	14,394	 	37,854	 	45,749	 	
Net Interest Income	 	96,766	 	97,499	 	98,626	 	293,962	 	310,207	 	
Provision for Credit Losses	 	2,180	 	3,600	 	13,359	 	10,471	 	50,009	 	
Net Interest Income After Provision for Credit Losses	 	94,586	 	93,899	 	85,267	 	283,491	 	260,198	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	10,788	 	11,427	 	10,534	 	34,021	 	33,699	 	
Mortgage Banking	 	5,480	 	2,661	 	6,811	 	11,263	 	14,027	 	
Service Charges on Deposit Accounts	 	9,820	 	9,375	 	12,737	 	29,127	 	41,407	 	
Fees, Exchange, and Other Service Charges	 	16,219	 	16,662	 	15,500	 	47,826	 	45,810	 	
Investment Securities Gains, Net	 	—	 	—	 	7,877	 	6,084	 	42,849	 	
Insurance	 	2,664	 	3,210	 	2,646	 	8,645	 	7,652	 	
Other	 	5,892	 	6,128	 	7,020	 	17,282	 	18,337	 	
Total Noninterest Income	 	50,863	 	49,463	 	63,125	 	154,248	 	203,781	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	44,307	 	46,800	 	46,840	 	137,889	 	138,904	 	
Net Occupancy	 	11,113	 	10,476	 	10,186	 	31,916	 	30,484	 	
Net Equipment	 	4,662	 	4,741	 	4,545	 	14,101	 	13,469	 	
Professional Fees	 	2,245	 	2,294	 	905	 	6,697	 	4,988	 	
FDIC Insurance	 	2,065	 	2,010	 	3,159	 	7,319	 	9,366	 	
Other	 	19,563	 	27,453	 	24,255	 	65,889	 	60,303	 	
Total Noninterest Expense	 	83,955	 	93,774	 	89,890	 	263,811	 	257,514	 	
Income Before Provision for Income Taxes	 	61,494	 	49,588	 	58,502	 	173,928	 	206,465	 	
Provision for Income Taxes	 	18,188	 	14,440	 	14,438	 	53,114	 	63,101	 	
Net Income	 	$	43,306	 	$	35,148	 	$	44,064	 	$	120,814	 	$	143,364	 	
Basic Earnings Per Share	 	$	0.93	 	$	0.74	 	$	0.91	 	$	2.55	 	$	2.98	 	
Diluted Earnings Per Share	 	$	0.92	 	$	0.74	 	$	0.91	 	$	2.54	 	$	2.96	 	
Dividends Declared Per Share	 	$	0.45	 	$	0.45	 	$	0.45	 	$	1.35	 	$	1.35	 	
Basic Weighted Average Shares	 	46,806,439	 	47,428,718	 	48,189,358	 	47,358,049	 	48,062,385	 	
Diluted Weighted Average Shares	 	46,934,140	 	47,607,814	 	48,462,154	 	47,531,066	 	48,386,647	 	

 
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition	 	Table 4	
 
 	 	September 30,	 	June 30,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	2010	 	
Assets	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	3,543	 	$	4,796	 	$	3,472	 	$	2,641	 	
Funds Sold	 	242,062	 	449,042	 	438,327	 	174,288	 	
Investment Securities	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	4,448,898	 	4,112,601	 	6,533,874	 	6,213,949	 	
Held-to-Maturity (Fair Value of $2,610,081; $2,566,621; $134,028; and $148,631)	 	2,520,422	 	2,512,024	 	127,249	 	141,192	 	
Loans Held for Sale	 	12,745	 	13,157	 	17,564	 	18,765	 	
Loans and Leases	 	5,348,472	 	5,351,473	 	5,335,792	 	5,312,054	 	
Allowance for Loan and Lease Losses	 	(143,410	)	(144,976	)	(147,358	)	(147,358	)	
Net Loans and Leases	 	5,205,062	 	5,206,497	 	5,188,434	 	5,164,696	 	
Total Earning Assets	 	12,432,732	 	12,298,117	 	12,308,920	 	11,715,531	 	
Cash and Noninterest-Bearing Deposits	 	206,875	 	203,326	 	165,748	 	267,597	 	
Premises and Equipment	 	104,509	 	105,785	 	108,170	 	108,855	 	
Customers’ Acceptances	 	749	 	882	 	437	 	1,087	 	
Accrued Interest Receivable	 	43,319	 	40,957	 	41,151	 	40,606	 	
Foreclosed Real Estate	 	3,341	 	2,590	 	1,928	 	5,910	 	
Mortgage Servicing Rights	 	23,990	 	25,072	 	25,379	 	24,316	 	
Goodwill	 	31,517	 	31,517	 	31,517	 	31,517	 	
Other Assets	 	457,726	 	452,958	 	443,537	 	521,184	 	
Total Assets	 	$	13,304,758	 	$	13,161,204	 	$	13,126,787	 	$	12,716,603	 	
 	 	 	 	 	 	 	 	 	 	
Liabilities	 	 	 	 	 	 	 	 	 	
Deposits	 	 	 	 	 	 	 	 	 	
Noninterest-Bearing Demand	 	$	2,702,296	 	$	2,507,358	 	$	2,447,713	 	$	2,290,033	 	
Interest-Bearing Demand	 	1,745,812	 	2,023,937	 	1,871,718	 	1,814,934	 	
Savings	 	4,449,351	 	4,413,390	 	4,526,893	 	4,423,095	 	
Time	 	1,111,554	 	1,034,349	 	1,042,671	 	1,074,400	 	
Total Deposits	 	10,009,013	 	9,979,034	 	9,888,995	 	9,602,462	 	
Funds Purchased	 	9,882	 	9,882	 	9,478	 	9,832	 	
Short-Term Borrowings	 	6,400	 	6,800	 	6,200	 	7,100	 	
Securities Sold Under Agreements to Repurchase	 	1,929,266	 	1,873,286	 	1,901,084	 	1,616,243	 	
Long-Term Debt	 	30,705	 	30,714	 	32,652	 	40,292	 	
Banker’s Acceptances	 	749	 	882	 	437	 	1,087	 	
Retirement Benefits Payable	 	30,704	 	30,588	 	30,885	 	35,461	 	
Accrued Interest Payable	 	6,751	 	5,457	 	5,007	 	6,492	 	
Taxes Payable and Deferred Taxes	 	114,842	 	106,244	 	121,517	 	219,525	 	
Other Liabilities	 	148,671	 	114,867	 	119,399	 	138,548	 	
Total Liabilities	 	12,286,983	 	12,157,754	 	12,115,654	 	11,677,042	 	
Shareholders’ Equity	 	 	 	 	 	 	 	 	 	
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: September 30, 2011 - 57,132,310 / 46,570,413; June 30, 2011 - 57,132,830 / 47,225,303; December 31, 2010 - 57,115,287 / 48,097,672; and September 30, 2010 - 57,115,287 / 48,265,014)	 	571	 	571	 	570	 	570	 	
Capital Surplus	 	503,255	 	502,777	 	500,888	 	499,437	 	
Accumulated Other Comprehensive Income	 	46,754	 	27,778	 	26,965	 	66,953	 	
Retained Earnings	 	986,202	 	964,420	 	932,629	 	914,901	 	
Treasury Stock, at Cost (Shares: September 30, 2011 - 10,561,897; June 30, 2011 - 9,907,527; December 31, 2010 - 9,017,615; and September 30, 2010 - 8,850,273)	 	(519,007	)	(492,096	)	(449,919	)	(442,300	)	
Total Shareholders’ Equity	 	1,017,775	 	1,003,450	 	1,011,133	 	1,039,561	 	
Total Liabilities and Shareholders’ Equity	 	$	13,304,758	 	$	13,161,204	 	$	13,126,787	 	$	12,716,603	 	

 
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	 	120,814	 	—	 	—	 	—	 	120,814	 	—	 	$	120,814	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Unrealized Gains on Investment Securities, Net of Reclassification Adjustment	 	18,376	 	—	 	—	 	18,376	 	—	 	—	 	18,376	 	
Amortization of Net Losses Related to Defined Benefit Plans	 	1,413	 	—	 	—	 	1,413	 	—	 	—	 	1,413	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	140,603	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Share-Based Compensation	 	2,001	 	—	 	2,001	 	—	 	—	 	—	 	 	 	
Common Stock Issued under Purchase and Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Compensation Plans and Related Tax Benefits (309,108 shares)	 	10,477	 	1	 	366	 	—	 	(3,193	)	13,303	 	 	 	
Common Stock Repurchased (1,836,367 shares)	 	(82,391	)	—	 	—	 	—	 	—	 	(82,391	)	 	 	
Cash Dividends Paid ($1.35 per share)	 	(64,048	)	—	 	—	 	—	 	(64,048	)	—	 	 	 	
Balance as of September 30, 2011	 	$	1,017,775	 	$	571	 	$	503,255	 	$	46,754	 	$	986,202	 	$	(519,007	)	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance as of December 31, 2009	 	$	895,973	 	$	569	 	$	494,318	 	$	6,925	 	$	843,521	 	$	(449,360	)	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	143,364	 	—	 	—	 	—	 	143,364	 	—	 	$	143,364	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Unrealized Gains on Investment Securities, Net of Reclassification Adjustment	 	58,886	 	—	 	—	 	58,886	 	—	 	—	 	58,886	 	
Amortization of Net Losses Related to Defined Benefit Plans	 	1,142	 	—	 	—	 	1,142	 	—	 	—	 	1,142	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	203,392	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Share-Based Compensation	 	2,703	 	—	 	2,703	 	—	 	—	 	—	 	 	 	
Common Stock Issued under Purchase and Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Compensation Plans and Related Tax Benefits (522,542 shares)	 	15,716	 	1	 	2,416	 	—	 	(6,850	)	20,149	 	 	 	
Common Stock Repurchased (276,471 shares)	 	(13,089	)	—	 	—	 	—	 	—	 	(13,089	)	 	 	
Cash Dividends Paid ($1.35 per share)	 	(65,134	)	—	 	—	 	—	 	(65,134	)	—	 	 	 	
Balance as of September 30, 2010	 	$	1,039,561	 	$	570	 	$	499,437	 	$	66,953	 	$	914,901	 	$	(442,300	)	 	 	

 

 
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable Equivalent Basis	 	Table 6a	
 
 	 	Three Months Ended	 	Three Months Ended	 	Three Months Ended	 	
 	 	September 30, 2011	 	June 30, 2011	 	September 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	 	$	3.7	 	$	—	 	0.56	%	$	5.3	 	$	—	 	0.15	%	$	4.4	 	$	—	 	0.49	%	
Funds Sold	 	309.4	 	0.2	 	0.20	 	518.4	 	0.3	 	0.23	 	303.4	 	0.2	 	0.27	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	4,309.3	 	23.5	 	2.18	 	4,061.4	 	23.9	 	2.35	 	6,158.5	 	41.0	 	2.66	 	
Held-to-Maturity	 	2,511.0	 	20.3	 	3.24	 	2,418.0	 	20.6	 	3.40	 	148.2	 	1.6	 	4.19	 	
Loans Held for Sale	 	9.2	 	0.1	 	4.87	 	11.5	 	0.1	 	3.25	 	12.7	 	0.1	 	4.59	 	
Loans and Leases1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	815.5	 	8.2	 	3.97	 	772.4	 	7.8	 	4.02	 	750.6	 	7.8	 	4.13	 	
Commercial Mortgage	 	876.7	 	10.7	 	4.85	 	890.9	 	10.8	 	4.87	 	808.8	 	10.4	 	5.10	 	
Construction	 	74.5	 	1.0	 	5.15	 	79.3	 	1.0	 	5.24	 	87.6	 	1.1	 	4.95	 	
Commercial Lease Financing	 	314.6	 	2.0	 	2.61	 	329.5	 	2.3	 	2.79	 	380.1	 	2.6	 	2.79	 	
Residential Mortgage	 	2,129.8	 	27.8	 	5.23	 	2,113.3	 	27.7	 	5.25	 	2,076.0	 	29.5	 	5.68	 	
Home Equity	 	780.5	 	9.3	 	4.72	 	785.3	 	9.5	 	4.83	 	849.4	 	10.7	 	4.99	 	
Automobile	 	191.4	 	3.2	 	6.66	 	192.8	 	3.3	 	6.92	 	229.1	 	4.4	 	7.54	 	
Other2	 	157.4	 	3.0	 	7.50	 	162.6	 	3.0	 	7.50	 	186.6	 	3.5	 	7.55	 	
Total Loans and Leases	 	5,340.4	 	65.2	 	4.86	 	5,326.1	 	65.4	 	4.92	 	5,368.2	 	70.0	 	5.20	 	
Other	 	79.9	 	0.3	 	1.40	 	79.9	 	0.3	 	1.40	 	79.8	 	0.3	 	1.39	 	
Total Earning Assets3	 	12,562.9	 	109.6	 	3.48	 	12,420.6	 	110.6	 	3.56	 	12,075.2	 	113.2	 	3.74	 	
Cash and Noninterest-Bearing Deposits	 	135.1	 	 	 	 	 	129.3	 	 	 	 	 	227.3	 	 	 	 	 	
Other Assets	 	427.1	 	 	 	 	 	417.3	 	 	 	 	 	494.7	 	 	 	 	 	
Total Assets	 	$	13,125.1	 	 	 	 	 	$	12,967.2	 	 	 	 	 	$	12,797.2	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,772.5	 	0.2	 	0.04	 	$	1,769.6	 	0.2	 	0.04	 	$	1,770.1	 	0.2	 	0.06	 	
Savings	 	4,497.1	 	1.8	 	0.16	 	4,523.0	 	1.9	 	0.17	 	4,460.9	 	3.5	 	0.31	 	
Time	 	1,069.4	 	2.6	 	0.96	 	1,009.5	 	2.7	 	1.07	 	1,075.7	 	3.3	 	1.22	 	
Total Interest-Bearing Deposits	 	7,339.0	 	4.6	 	0.25	 	7,302.1	 	4.8	 	0.26	 	7,306.7	 	7.0	 	0.38	 	
Short-Term Borrowings	 	19.0	 	—	 	0.08	 	16.2	 	—	 	0.13	 	26.6	 	—	 	0.15	 	
Securities Sold Under Agreements to Repurchase	 	1,908.9	 	7.4	 	1.52	 	1,862.4	 	7.4	 	1.56	 	1,706.2	 	6.7	 	1.53	 	
Long-Term Debt	 	30.7	 	0.5	 	6.50	 	32.6	 	0.5	 	6.49	 	40.3	 	0.7	 	6.68	 	
Total Interest-Bearing Liabilities	 	9,297.6	 	12.5	 	0.53	 	9,213.3	 	12.7	 	0.55	 	9,079.8	 	14.4	 	0.63	 	
Net Interest Income	 	 	 	$	97.1	 	 	 	 	 	$	97.9	 	 	 	 	 	$	98.8	 	 	 	
Interest Rate Spread	 	 	 	 	 	2.95	%	 	 	 	 	3.01	%	 	 	 	 	3.11	%	
Net Interest Margin	 	 	 	 	 	3.09	%	 	 	 	 	3.16	%	 	 	 	 	3.27	%	
Noninterest-Bearing Demand Deposits	 	2,532.8	 	 	 	 	 	2,488.2	 	 	 	 	 	2,270.2	 	 	 	 	 	
Other Liabilities	 	272.1	 	 	 	 	 	248.9	 	 	 	 	 	396.7	 	 	 	 	 	
Shareholders’ Equity	 	1,022.6	 	 	 	 	 	1,016.8	 	 	 	 	 	1,050.5	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	13,125.1	 	 	 	 	 	$	12,967.2	 	 	 	 	 	$	12,797.2	 	 	 	 	 	

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 $364,000, $395,000, and $199,000 for the three months ended September 30, 2011, June 30, 2011, and September 30, 2010, respectively.

 
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable Equivalent Basis	 	Table 6b	
 
 	 	Nine Months Ended	 	Nine Months Ended	 	
 	 	September 30, 2011	 	September 30, 2010	 	
 	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	
(dollars in millions)	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	4.4	 	$	—	 	0.18	%	$	5.2	 	$	—	 	0.54	%	
Funds Sold	 	427.8	 	0.7	 	0.22	 	450.5	 	0.9	 	0.27	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	4,667.6	 	85.4	 	2.44	 	5,646.9	 	130.3	 	3.08	 	
Held-to-Maturity	 	1,949.2	 	48.6	 	3.32	 	160.7	 	5.1	 	4.24	 	
Loans Held for Sale	 	9.7	 	0.3	 	4.46	 	10.0	 	0.8	 	10.16	 	
Loans and Leases1	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	788.0	 	23.8	 	4.03	 	768.1	 	25.9	 	4.50	 	
Commercial Mortgage	 	873.1	 	31.9	 	4.88	 	824.2	 	31.4	 	5.10	 	
Construction	 	78.1	 	3.0	 	5.14	 	98.6	 	3.7	 	5.08	 	
Commercial Lease Financing	 	325.8	 	6.6	 	2.72	 	396.0	 	9.0	 	3.03	 	
Residential Mortgage	 	2,114.7	 	84.2	 	5.31	 	2,114.9	 	90.3	 	5.69	 	
Home Equity	 	787.2	 	28.4	 	4.82	 	878.0	 	32.9	 	5.01	 	
Automobile	 	195.7	 	10.1	 	6.91	 	250.2	 	14.3	 	7.64	 	
Other2	 	163.6	 	9.2	 	7.51	 	194.7	 	11.2	 	7.65	 	
Total Loans and Leases	 	5,326.2	 	197.2	 	4.94	 	5,524.7	 	218.7	 	5.29	 	
Other	 	79.9	 	0.8	 	1.40	 	79.8	 	0.8	 	1.39	 	
Total Earning Assets3	 	12,464.8	 	333.0	 	3.56	 	11,877.8	 	356.6	 	4.01	 	
Cash and Noninterest-Bearing Deposits	 	133.0	 	 	 	 	 	226.1	 	 	 	 	 	
Other Assets	 	422.1	 	 	 	 	 	490.4	 	 	 	 	 	
Total Assets	 	$	13,019.9	 	 	 	 	 	$	12,594.3	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,782.2	 	0.6	 	0.04	 	$	1,697.7	 	0.8	 	0.06	 	
Savings	 	4,518.9	 	5.9	 	0.18	 	4,457.7	 	12.2	 	0.37	 	
Time	 	1,041.7	 	8.1	 	1.04	 	1,101.5	 	10.3	 	1.25	 	
Total Interest-Bearing Deposits	 	7,342.8	 	14.6	 	0.27	 	7,256.9	 	23.3	 	0.43	 	
Short-Term Borrowings	 	17.4	 	—	 	0.12	 	24.3	 	—	 	0.12	 	
Securities Sold Under Agreements to Repurchase	 	1,844.7	 	21.8	 	1.56	 	1,675.0	 	19.5	 	1.54	 	
Long-Term Debt	 	32.0	 	1.5	 	6.15	 	68.2	 	2.9	 	5.63	 	
Total Interest-Bearing Liabilities	 	9,236.9	 	37.9	 	0.54	 	9,024.4	 	45.7	 	0.67	 	
Net Interest Income	 	 	 	$	295.1	 	 	 	 	 	$	310.9	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.02	%	 	 	 	 	3.34	%	
Net Interest Margin	 	 	 	 	 	3.16	%	 	 	 	 	3.50	%	
Noninterest-Bearing Demand Deposits	 	2,502.5	 	 	 	 	 	2,195.5	 	 	 	 	 	
Other Liabilities	 	261.1	 	 	 	 	 	380.1	 	 	 	 	 	
Shareholders’ Equity	 	1,019.4	 	 	 	 	 	994.3	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	13,019.9	 	 	 	 	 	$	12,594.3	 	 	 	 	 	

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 $1,142,000 and $675,000 for the nine months ended September 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 September 30, 2011	 	
 	 	Compared to June 30, 2011	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Time 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	 	 	
Funds Sold	 	$	(0.1	)	$	—	 	$	—	 	$	(0.1	)	
Investment Securities	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	1.4	 	(1.8	)	—	 	(0.4	)	
Held-to-Maturity	 	0.7	 	(1.0	)	—	 	(0.3	)	
Loans and Leases	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	0.4	 	(0.1	)	0.1	 	0.4	 	
Commercial Mortgage	 	(0.2	)	—	 	0.1	 	(0.1	)	
Commercial Lease Financing	 	(0.1	)	(0.2	)	—	 	(0.3	)	
Residential Mortgage	 	0.2	 	(0.1	)	—	 	0.1	 	
Home Equity	 	(0.1	)	(0.2	)	0.1	 	(0.2	)	
Automobile	 	—	 	(0.1	)	—	 	(0.1	)	
Other2	 	(0.1	)	—	 	0.1	 	—	 	
Total Loans and Leases	 	0.1	 	(0.7	)	0.4	 	(0.2	)	
Total Change in Interest Income	 	2.1	 	(3.5	)	0.4	 	(1.0	)	
 	 	 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	
Savings	 	—	 	(0.1	)	—	 	(0.1	)	
Time	 	0.2	 	(0.3	)	—	 	(0.1	)	
Total Interest-Bearing Deposits	 	0.2	 	(0.4	)	—	 	(0.2	)	
Securities Sold Under Agreements to Repurchase	 	0.1	 	(0.2	)	0.1	 	—	 	
Total Change in Interest Expense	 	0.3	 	(0.6	)	0.1	 	(0.2	)	
 	 	 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	1.8	 	$	(2.9	)	$	0.3	 	$	(0.8	)	

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

 
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable Equivalent Basis	 	Table 7b	
 
 	 	Three Months Ended September 30, 2011	 	
 	 	Compared to September 30, 2010	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	$	(10.9	)	$	(6.6	)	$	(17.5	)	
Held-to-Maturity	 	19.1	 	(0.4	)	18.7	 	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	0.7	 	(0.3	)	0.4	 	
Commercial Mortgage	 	0.8	 	(0.5	)	0.3	 	
Construction	 	(0.2	)	0.1	 	(0.1	)	
Commercial Lease Financing	 	(0.4	)	(0.2	)	(0.6	)	
Residential Mortgage	 	0.7	 	(2.4	)	(1.7	)	
Home Equity	 	(0.8	)	(0.6	)	(1.4	)	
Automobile	 	(0.7	)	(0.5	)	(1.2	)	
Other2	 	(0.5	)	—	 	(0.5	)	
Total Loans and Leases	 	(0.4	)	(4.4	)	(4.8	)	
Total Change in Interest Income	 	7.8	 	(11.4	)	(3.6	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Savings	 	—	 	(1.7	)	(1.7	)	
Time	 	—	 	(0.7	)	(0.7	)	
Total Interest-Bearing Deposits	 	—	 	(2.4	)	(2.4	)	
Securities Sold Under Agreements to Repurchase	 	0.8	 	(0.1	)	0.7	 	
Long-Term Debt	 	(0.2	)	—	 	(0.2	)	
Total Change in Interest Expense	 	0.6	 	(2.5	)	(1.9	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	7.2	 	$	(8.9	)	$	(1.7	)	

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

 
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable Equivalent Basis	 	Table 7c	
 
 	 	Nine Months Ended September 30, 2011	 	
 	 	Compared to September 30, 2010	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	—	 	$	(0.2	)	$	(0.2	)	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	(20.5	)	(24.4	)	(44.9	)	
Held-to-Maturity	 	44.8	 	(1.3	)	43.5	 	
Loans Held for Sale	 	(0.1	)	(0.4	)	(0.5	)	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	0.7	 	(2.8	)	(2.1	)	
Commercial Mortgage	 	1.8	 	(1.3	)	0.5	 	
Construction	 	(0.7	)	—	 	(0.7	)	
Commercial Lease Financing	 	(1.5	)	(0.9	)	(2.4	)	
Residential Mortgage	 	—	 	(6.1	)	(6.1	)	
Home Equity	 	(3.3	)	(1.2	)	(4.5	)	
Automobile	 	(2.9	)	(1.3	)	(4.2	)	
Other2	 	(1.8	)	(0.2	)	(2.0	)	
Total Loans and Leases	 	(7.7	)	(13.8	)	(21.5	)	
Total Change in Interest Income	 	16.5	 	(40.1	)	(23.6	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	—	 	(0.2	)	(0.2	)	
Savings	 	0.1	 	(6.4	)	(6.3	)	
Time	 	(0.5	)	(1.7	)	(2.2	)	
Total Interest-Bearing Deposits	 	(0.4	)	(8.3	)	(8.7	)	
Securities Sold Under Agreements to Repurchase	 	2.0	 	0.3	 	2.3	 	
Long-Term Debt	 	(1.6	)	0.2	 	(1.4	)	
Total Change in Interest Expense	 	—	 	(7.8	)	(7.8	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	16.5	 	$	(32.3	)	$	(15.8	)	

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

 
Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits	 	Table 8	
 
 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	2011	 	2010	 	
Salaries	 	$	28,965	 	$	29,142	 	$	30,080	 	$	87,182	 	$	89,165	 	
Incentive Compensation	 	4,777	 	4,243	 	3,403	 	12,486	 	10,296	 	
Share-Based Compensation and Cash Grants for the Purchase of Company Stock	 	743	 	2,483	 	1,045	 	3,901	 	5,585	 	
Commission Expense	 	1,572	 	1,553	 	1,836	 	4,788	 	4,441	 	
Retirement and Other Benefits	 	3,634	 	3,804	 	4,178	 	12,400	 	12,144	 	
Payroll Taxes	 	2,241	 	2,335	 	2,287	 	8,615	 	8,051	 	
Medical, Dental, and Life Insurance	 	2,056	 	2,438	 	2,263	 	6,717	 	7,224	 	
Separation Expense	 	319	 	802	 	1,748	 	1,800	 	1,998	 	
Total Salaries and Benefits	 	$	44,307	 	$	46,800	 	$	46,840	 	$	137,889	 	$	138,904	 	

 

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Loan and Lease Portfolio Balances	 	Table 9	
 
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2011	 	2011	 	2011	 	2010	 	2010	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	790,294	 	$	815,912	 	$	771,923	 	$	772,624	 	$	736,385	 	
Commercial Mortgage	 	922,075	 	872,283	 	883,360	 	863,385	 	817,752	 	
Construction	 	69,635	 	81,432	 	80,360	 	80,325	 	88,671	 	
Lease Financing	 	312,159	 	316,776	 	331,491	 	334,997	 	353,962	 	
Total Commercial	 	2,094,163	 	2,086,403	 	2,067,134	 	2,051,331	 	1,996,770	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	2,130,589	 	2,130,335	 	2,108,376	 	2,094,189	 	2,073,340	 	
Home Equity	 	775,105	 	783,582	 	787,179	 	807,479	 	836,990	 	
Automobile	 	191,497	 	191,739	 	196,649	 	209,008	 	221,265	 	
Other1	 	157,118	 	159,414	 	167,591	 	173,785	 	183,689	 	
Total Consumer	 	3,254,309	 	3,265,070	 	3,259,795	 	3,284,461	 	3,315,284	 	
Total Loans and Leases	 	$	5,348,472	 	$	5,351,473	 	$	5,326,929	 	$	5,335,792	 	$	5,312,054	 	
 
Higher Risk Loans Outstanding	
 
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2011	 	2011	 	2011	 	2010	 	2010	 	
Residential Home Building2	 	$	15,379	 	$	16,186	 	$	14,744	 	$	14,964	 	$	18,444	 	
Residential Land Loans3	 	18,285	 	19,960	 	21,595	 	23,745	 	28,149	 	
Home Equity Loans4	 	22,321	 	21,778	 	23,783	 	23,179	 	23,957	 	
Air Transportation5	 	36,511	 	36,961	 	37,440	 	37,879	 	38,611	 	
Total Higher Risk Loans	 	$	92,496	 	$	94,885	 	$	97,562	 	$	99,767	 	$	109,161	 	

1  Comprised of other revolving credit, installment, and lease financing.	
2  Residential home building loans were $31.1 million as of September 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	
 
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2011	 	2011	 	2011	 	2010	 	2010	 	
Consumer	 	$	5,137,548	 	$	5,073,101	 	$	5,097,056	 	$	5,082,802	 	$	4,976,317	 	
Commercial	 	4,275,915	 	4,165,435	 	4,326,495	 	4,292,108	 	4,053,306	 	
Public and Other	 	595,550	 	740,498	 	488,840	 	514,085	 	572,839	 	
Total Deposits	 	$	10,009,013	 	$	9,979,034	 	$	9,912,391	 	$	9,888,995	 	$	9,602,462	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More	 	Table 10	
 
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2011	 	2011	 	2011	 	2010	 	2010	 	
Non-Performing Assets1	 	 	 	 	 	 	 	 	 	 	 	
Non-Accrual Loans and Leases	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	6,593	 	$	1,839	 	$	1,107	 	$	1,642	 	$	1,287	 	
Commercial Mortgage	 	2,188	 	3,290	 	3,421	 	3,503	 	5,071	 	
Construction	 	—	 	288	 	288	 	288	 	3,569	 	
Lease Financing	 	6	 	8	 	9	 	19	 	117	 	
Total Commercial	 	8,787	 	5,425	 	4,825	 	5,452	 	10,044	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	23,779	 	23,970	 	24,372	 	28,152	 	26,917	 	
Home Equity	 	1,863	 	2,155	 	2,602	 	2,254	 	2,303	 	
Other2	 	—	 	16	 	—	 	—	 	—	 	
Total Consumer	 	25,642	 	26,141	 	26,974	 	30,406	 	29,220	 	
Total Non-Accrual Loans and Leases	 	34,429	 	31,566	 	31,799	 	35,858	 	39,264	 	
Foreclosed Real Estate	 	3,341	 	2,590	 	2,793	 	1,928	 	5,910	 	
Total Non-Performing Assets	 	$	37,770	 	$	34,156	 	$	34,592	 	$	37,786	 	$	45,174	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Accruing Loans and Leases Past Due 90 Days or More	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	—	 	$	—	 	$	—	 	$	—	 	$	62	 	
Total Commercial	 	—	 	—	 	—	 	—	 	62	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	7,664	 	5,854	 	3,614	 	5,399	 	8,031	 	
Home Equity	 	2,639	 	1,147	 	1,100	 	1,067	 	1,246	 	
Automobile	 	138	 	167	 	260	 	410	 	348	 	
Other2	 	414	 	604	 	578	 	707	 	857	 	
Total Consumer	 	10,855	 	7,772	 	5,552	 	7,583	 	10,482	 	
Total Accruing Loans and Leases Past Due 90 Days or More	 	$	10,855	 	$	7,772	 	$	5,552	 	$	7,583	 	$	10,544	 	
Restructured Loans on Accrual Status and Not Past Due 90 Days or More	 	$	33,140	 	$	28,193	 	$	29,513	 	$	23,724	 	$	23,021	 	
Total Loans and Leases	 	$	5,348,472	 	$	5,351,473	 	$	5,326,929	 	$	5,335,792	 	$	5,312,054	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	 	0.64	%	0.59	%	0.60	%	0.67	%	0.74	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets to Total Loans and Leases, Loans Held for Sale, and Foreclosed Real Estate	 	0.70	%	0.64	%	0.65	%	0.71	%	0.85	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases, Commercial Loans Held for Sale, and Commercial Foreclosed Real Estate	 	0.52	%	0.34	%	0.31	%	0.31	%	0.75	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate	 	0.82	%	0.83	%	0.86	%	0.95	%	0.91	%	
 	 	 	 	 	 	 	 	 	 	 	 	
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	 	0.91	%	0.78	%	0.75	%	0.85	%	1.04	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Quarter to Quarter Changes in Non-Performing Assets 1	 	 	 	 	 	 	 	 	 	 	 	
Balance at Beginning of Quarter	 	$	34,156	 	$	34,592	 	$	37,786	 	$	45,174	 	$	43,241	 	
Additions	 	9,093	 	6,079	 	5,799	 	8,175	 	10,606	 	
Reductions	 	 	 	 	 	 	 	 	 	 	 	
Payments	 	(3,237	)	(2,363	)	(2,164	)	(5,019	)	(3,432	)	
Return to Accrual Status	 	(401	)	(3,226	)	(6,408	)	(1,250	)	(964	)	
Transfer to Foreclosed Real Estate	 	(541	)	—	 	(208	)	(1,133	)	(2,070	)	
Sales of Foreclosed Real Estate	 	(157	)	(497	)	—	 	(5,427	)	(700	)	
Charge-offs/Write-downs	 	(1,143	)	(429	)	(213	)	(2,734	)	(1,507	)	
Total Reductions	 	(5,479	)	(6,515	)	(8,993	)	(15,563	)	(8,673	)	
Balance at End of Quarter	 	$	37,770	 	$	34,156	 	$	34,592	 	$	37,786	 	$	45,174	 	

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	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	2011	 	2010	 	
Balance at Beginning of Period	 	$	150,395	 	$	152,777	 	$	152,777	 	$	152,777	 	$	149,077	 	
Loans and Leases Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(4,215	)	(1,507	)	(7,635	)	(7,379	)	(14,597	)	
Commercial Mortgage	 	—	 	—	 	—	 	—	 	(1,303	)	
Construction	 	—	 	—	 	—	 	—	 	(2,274	)	
Lease Financing	 	—	 	—	 	(108	)	—	 	(405	)	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	(1,558	)	(1,977	)	(1,325	)	(5,286	)	(8,957	)	
Home Equity	 	(2,528	)	(3,252	)	(2,871	)	(7,139	)	(13,193	)	
Automobile	 	(715	)	(797	)	(1,530	)	(2,541	)	(5,309	)	
Other1	 	(1,755	)	(1,488	)	(2,826	)	(4,807	)	(8,178	)	
Total Loans and Leases Charged-Off	 	(10,771	)	(9,021	)	(16,295	)	(27,152	)	(54,216	)	
Recoveries on Loans and Leases Previously Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	994	 	399	 	433	 	1,965	 	1,658	 	
Commercial Mortgage	 	530	 	—	 	—	 	530	 	24	 	
Lease Financing	 	3,405	 	44	 	28	 	3,499	 	40	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	740	 	622	 	696	 	1,621	 	1,354	 	
Home Equity	 	137	 	750	 	333	 	1,226	 	630	 	
Automobile	 	650	 	652	 	822	 	1,951	 	2,401	 	
Other1	 	569	 	572	 	624	 	1,941	 	1,800	 	
Total Recoveries on Loans and Leases Previously Charged-Off	 	7,025	 	3,039	 	2,936	 	12,733	 	7,907	 	
Net Loans and Leases Charged-Off	 	(3,746	)	(5,982	)	(13,359	)	(14,419	)	(46,309	)	
Provision for Credit Losses	 	2,180	 	3,600	 	13,359	 	10,471	 	50,009	 	
Balance at End of Period2	 	$	148,829	 	$	150,395	 	$	152,777	 	$	148,829	 	$	152,777	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Components	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	143,410	 	$	144,976	 	$	147,358	 	$	143,410	 	$	147,358	 	
Reserve for Unfunded Commitments	 	5,419	 	5,419	 	5,419	 	5,419	 	5,419	 	
Total Reserve for Credit Losses	 	$	148,829	 	$	150,395	 	$	152,777	 	$	148,829	 	$	152,777	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases Outstanding	 	$	5,340,406	 	$	5,326,123	 	$	5,368,177	 	$	5,326,209	 	$	5,524,672	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)	 	0.28	%	0.45	%	0.99	%	0.36	%	1.12	%	
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding	 	2.68	%	2.71	%	2.77	%	2.68	%	2.77	%	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Business Segments Selected Financial Information	 	Table 12a	
 
 	 	Retail	 	Commercial	 	Investment	 	Treasury	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	and Other	 	Total	 	
Three Months Ended September 30, 2011	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	43,334	 	$	33,935	 	$	3,698	 	$	15,799	 	$	96,766	 	
Provision for Credit Losses	 	4,477	 	(935	)	205	 	(1,567	)	2,180	 	
Net Interest Income After Provision for Credit Losses	 	38,857	 	34,870	 	3,493	 	17,366	 	94,586	 	
Noninterest Income	 	24,677	 	9,426	 	15,971	 	789	 	50,863	 	
Noninterest Expense	 	(45,105	)	(22,547	)	(14,615	)	(1,688	)	(83,955	)	
Income Before Provision for Income Taxes	 	18,429	 	21,749	 	4,849	 	16,467	 	61,494	 	
Provision for Income Taxes	 	(6,819	)	(7,497	)	(1,794	)	(2,078	)	(18,188	)	
Net Income	 	11,610	 	14,252	 	3,055	 	14,389	 	43,306	 	
Total Assets as of September 30, 2011	 	$	3,050,418	 	$	2,249,890	 	$	212,914	 	$	7,791,536	 	$	13,304,758	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended September 30, 2010 1	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	46,740	 	$	35,236	 	$	4,043	 	$	12,607	 	$	98,626	 	
Provision for Credit Losses	 	6,288	 	7,121	 	(19	)	(31	)	13,359	 	
Net Interest Income After Provision for Credit Losses	 	40,452	 	28,115	 	4,062	 	12,638	 	85,267	 	
Noninterest Income	 	28,049	 	9,745	 	16,478	 	8,853	 	63,125	 	
Noninterest Expense	 	(43,391	)	(23,370	)	(13,851	)	(9,278	)	(89,890	)	
Income Before Provision for Income Taxes	 	25,110	 	14,490	 	6,689	 	12,213	 	58,502	 	
Provision for Income Taxes	 	(9,291	)	(421	)	(2,475	)	(2,251	)	(14,438	)	
Net Income	 	15,819	 	14,069	 	4,214	 	9,962	 	44,064	 	
Total Assets as of September 30, 20101	 	$	3,095,006	 	$	2,251,004	 	$	242,312	 	$	7,128,281	 	$	12,716,603	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Business Segments Selected Financial Information	 	Table 12b	
 
 	 	Retail	 	Commercial	 	Investment	 	Treasury	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	and Other	 	Total	 	
Nine Months Ended September 30, 2011	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	131,648	 	$	103,624	 	$	11,353	 	$	47,337	 	$	293,962	 	
Provision for Credit Losses	 	15,105	 	(726	)	65	 	(3,973	)	10,471	 	
Net Interest Income After Provision for Credit Losses	 	116,543	 	104,350	 	11,288	 	51,310	 	283,491	 	
Noninterest Income	 	66,494	 	28,224	 	46,256	 	13,274	 	154,248	 	
Noninterest Expense	 	(141,349	)	(71,128	)	(45,062	)	(6,272	)	(263,811	)	
Income Before Provision for Income Taxes	 	41,688	 	61,446	 	12,482	 	58,312	 	173,928	 	
Provision for Income Taxes	 	(15,425	)	(21,302	)	(4,618	)	(11,769	)	(53,114	)	
Net Income	 	26,263	 	40,144	 	7,864	 	46,543	 	120,814	 	
Total Assets as of September 30, 2011	 	$	3,050,418	 	$	2,249,890	 	$	212,914	 	$	7,791,536	 	$	13,304,758	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Nine Months Ended September 30, 2010 1	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	144,290	 	$	112,682	 	$	12,582	 	$	40,653	 	$	310,207	 	
Provision for Credit Losses	 	31,516	 	18,468	 	69	 	(44	)	50,009	 	
Net Interest Income After Provision for Credit Losses	 	112,774	 	94,214	 	12,513	 	40,697	 	260,198	 	
Noninterest Income	 	77,322	 	31,461	 	45,814	 	49,184	 	203,781	 	
Noninterest Expense	 	(129,160	)	(72,210	)	(43,450	)	(12,694	)	(257,514	)	
Income Before Provision for Income Taxes	 	60,936	 	53,465	 	14,877	 	77,187	 	206,465	 	
Provision for Income Taxes	 	(22,546	)	(14,742	)	(5,505	)	(20,308	)	(63,101	)	
Net Income	 	38,390	 	38,723	 	9,372	 	56,879	 	143,364	 	
Total Assets as of September 30, 20101	 	$	3,095,006	 	$	2,251,004	 	$	242,312	 	$	7,128,281	 	$	12,716,603	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Selected Quarterly Financial Data	 	Table 13	
 
 	 	Three Months Ended	 	
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands, except per share amounts)	 	2011	 	2011	 	2011	 	2010	 	2010	 	
Quarterly Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	65,344	 	$	65,542	 	$	66,593	 	$	67,915	 	$	70,198	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	23,097	 	23,490	 	37,669	 	39,546	 	40,775	 	
Held-to-Maturity	 	20,344	 	20,553	 	7,633	 	1,388	 	1,553	 	
Deposits	 	6	 	2	 	(2	)	7	 	5	 	
Funds Sold	 	160	 	297	 	251	 	160	 	211	 	
Other	 	279	 	279	 	279	 	279	 	278	 	
Total Interest Income	 	109,230	 	110,163	 	112,423	 	109,295	 	113,020	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	4,561	 	4,792	 	5,232	 	5,918	 	7,041	 	
Securities Sold Under Agreements to Repurchase	 	7,400	 	7,338	 	7,041	 	6,425	 	6,670	 	
Funds Purchased	 	4	 	5	 	6	 	7	 	10	 	
Long-Term Debt	 	499	 	529	 	447	 	672	 	673	 	
Total Interest Expense	 	12,464	 	12,664	 	12,726	 	13,022	 	14,394	 	
Net Interest Income	 	96,766	 	97,499	 	99,697	 	96,273	 	98,626	 	
Provision for Credit Losses	 	2,180	 	3,600	 	4,691	 	5,278	 	13,359	 	
Net Interest Income After Provision for Credit Losses	 	94,586	 	93,899	 	95,006	 	90,995	 	85,267	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	10,788	 	11,427	 	11,806	 	11,190	 	10,534	 	
Mortgage Banking	 	5,480	 	2,661	 	3,122	 	4,549	 	6,811	 	
Service Charges on Deposit Accounts	 	9,820	 	9,375	 	9,932	 	11,632	 	12,737	 	
Fees, Exchange, and Other Service Charges	 	16,219	 	16,662	 	14,945	 	15,196	 	15,500	 	
Investment Securities Gains (Losses), Net	 	—	 	—	 	6,084	 	(1	)	7,877	 	
Insurance	 	2,664	 	3,210	 	2,771	 	2,309	 	2,646	 	
Other	 	5,892	 	6,128	 	5,262	 	6,602	 	7,020	 	
Total Noninterest Income	 	50,863	 	49,463	 	53,922	 	51,477	 	63,125	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	44,307	 	46,800	 	46,782	 	46,809	 	46,840	 	
Net Occupancy	 	11,113	 	10,476	 	10,327	 	10,504	 	10,186	 	
Net Equipment	 	4,662	 	4,741	 	4,698	 	5,902	 	4,545	 	
Professional Fees	 	2,245	 	2,294	 	2,158	 	2,116	 	905	 	
FDIC Insurance	 	2,065	 	2,010	 	3,244	 	3,198	 	3,159	 	
Other	 	19,563	 	27,453	 	18,873	 	20,193	 	24,255	 	
Total Noninterest Expense	 	83,955	 	93,774	 	86,082	 	88,722	 	89,890	 	
Income Before Provision for Income Taxes	 	61,494	 	49,588	 	62,846	 	53,750	 	58,502	 	
Provision for Income Taxes	 	18,188	 	14,440	 	20,486	 	13,172	 	14,438	 	
Net Income	 	$	43,306	 	$	35,148	 	$	42,360	 	$	40,578	 	$	44,064	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Basic Earnings Per Share	 	$	0.93	 	$	0.74	 	$	0.89	 	$	0.84	 	$	0.91	 	
Diluted Earnings Per Share	 	$	0.92	 	$	0.74	 	$	0.88	 	$	0.84	 	$	0.91	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	$	5,348,472	 	$	5,351,473	 	$	5,326,929	 	$	5,335,792	 	$	5,312,054	 	
Total Assets	 	13,304,758	 	13,161,204	 	12,962,304	 	13,126,787	 	12,716,603	 	
Total Deposits	 	10,009,013	 	9,979,034	 	9,912,391	 	9,888,995	 	9,602,462	 	
Total Shareholders’ Equity	 	1,017,775	 	1,003,450	 	996,225	 	1,011,133	 	1,039,561	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.31	%	1.09	%	1.32	%	1.24	%	1.37	%	
Return on Average Shareholders’ Equity	 	16.80	 	13.86	 	16.86	 	15.08	 	16.64	 	
Efficiency Ratio1	 	56.87	 	63.81	 	56.04	 	60.05	 	55.57	 	
Net Interest Margin2	 	3.09	 	3.16	 	3.24	 	3.15	 	3.27	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Hawaii Economic Trends	 	Table 14	
 
 	 	Eight Months Ended	 	Year Ended	 	
($ in millions; jobs in thousands)	 	August 31, 2011	 	December 31, 2010	 	December 31, 2009	 	
Hawaii Economic Trends	 	 	 	 	 	 	 	
State General Fund Revenues1	 	$	3,103.3	 	9.4	%	$	4,314.1	 	7.4	%	$	4,018.2	 	(12.8	)%	
General Excise and Use Tax Revenue 1	 	$	1,749.0	 	9.6	 	$	2,379.9	 	3.6	 	$	2,296.3	 	(10.6	)	
Jobs2 	 	591.8	 	1.3	 	586.8	 	(0.8	)	591.7	 	(4.4	)	
 
 	 	August 31,	 	December 31,	 	September 30,	 	December 31,	 	
(annual percentage, except 2010 and 2011)	 	2011	 	2010	 	2010	 	2009	 	2008	 	
Unemployment3	 	 	 	 	 	 	 	 	 	 	 	
Statewide, seasonally adjusted	 	6.2	%	6.3	%	6.5	%	6.9	%	5.6	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Oahu	 	5.5	 	4.8	 	5.6	 	5.4	 	4.3	 	
Island of Hawaii	 	9.6	 	8.6	 	9.8	 	9.5	 	7.4	 	
Maui	 	7.5	 	7.4	 	8.3	 	8.8	 	6.9	 	
Kauai	 	8.6	 	7.8	 	8.9	 	8.7	 	7.8	 	
 
 	 	September 30,	 	December 31,	 	
(percentage change, except months of inventory)	 	2011	 	2010	 	2009	 	
Housing Trends (Single Family Oahu)4	 	 	 	 	 	 	 	
Median Home Price	 	(4.7	)%	3.1	%	(7.3	)%	
Home Sales Volume (units)	 	(2.3	)%	13.4	%	(1.8	)%	
Months of Inventory	 	5.9	 	6.0	 	6.8	 	

 	 	Monthly Visitor Arrivals,	 	Percentage Change	 	
(in thousands)	 	Seasonally Adjusted	 	from Previous Month	 	
Tourism2	 	 	 	 	 	
 	 	 	 	 	 	
July 31, 2011	 	585.4	 	2.4	%	
June 30, 2011	 	572.0	 	(0.1	)	
May 31, 2011	 	572.5	 	(2.2	)	
April 30, 2011	 	585.3	 	1.9	 	
March 31, 2011	 	574.4	 	(4.5	)	
February 28, 2011	 	601.6	 	(0.5	)	
January 31, 2011	 	604.7	 	1.1	 	
December 31, 2010	 	598.2	 	(2.0	)	
November 30, 2010	 	610.6	 	1.0	 	
October 31, 2010	 	604.5	 	0.9	 	
September 30, 2010	 	598.9	 	(1.1	)	
August 31, 2010	 	605.9	 	1.3	 	
July 31, 2010	 	597.9	 	1.2	 	
June 30, 2010	 	590.9	 	3.1	 	
May 31, 2010	 	572.9	 	1.4	 	
April 30, 2010	 	564.8	 	1.8	 	
March 31, 2010	 	554.9	 	2.6	 	
February 28, 2010	 	540.6	 	(0.3	)	
January 31, 2010	 	542.5	 	(0.1	)	

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.