U N I T E D   S T A T E S
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 22, 2012	 	
 
BANK OF HAWAII CORPORATION
----------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
 
Delaware	 	1-6887	 	99-0148992	
----------------------------	 	----------------------	 	---------------------------	
(State of Incorporation)	 	(Commission	 	(IRS Employer	
 	 	File Number)	 	Identification No.)	

130 Merchant Street, Honolulu, Hawaii	 	96813	
----------------------------------------------------------------------	 	-----------------	
(Address of principal executive offices)	 	(Zip Code)	
 
(Registrant’s telephone number,	 	 	 	
including area code)   	 	 	 	(888) 643-3888	

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

 
Item 2.02.          Results of Operations and Financial Condition.
 
On October 22, 2012, Bank of Hawaii Corporation announced its results of operations for the quarter ended September 30, 2012.  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 22, 2012 Press Release: Bank of Hawaii Corporation Third Quarter 2012 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 22, 2012	BANK OF HAWAII CORPORATION	

 	By	/s/ MARK A. ROSSI	
 	 	Mark A. Rossi	
 	 	Vice Chairman and Corporate Secretary	

Exhibit 99.1

 
 
Bank of Hawaii Corporation Third Quarter 2012 Financial Results
 
·   Diluted Earnings Per Share $0.92
·   Net Income for the Quarter $41.2 Million
·   Board of Directors Declares Dividend of $0.45 Per Share
 
FOR IMMEDIATE RELEASE
 
HONOLULU, HI (October 22, 2012) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.92 for the third quarter of 2012, up $0.02 from diluted earnings per share of $0.90 in the second quarter of 2012 and unchanged from diluted earnings per share of $0.92 in the third quarter of 2011.  Net income for the third quarter was $41.2 million, up $0.5 million compared to net income of $40.7 million in the previous quarter, and down $2.1 million from net income of $43.3 million in the same quarter last year.
 
Loans grew 2.0 percent during the third quarter with loan and lease balances increasing to $5.78 billion at September 30, 2012.  Total deposits declined during the third quarter of 2012 due to management’s planned reduction in government time deposits.  The net interest margin remained stable at 2.98 percent.  The allowance for loan and lease losses decreased by $1.5 million to $131.0 million and represented 2.27 percent of outstanding loans and leases at September 30, 2012.
 
“Bank of Hawaii Corporation had good results for the third quarter of 2012,” said Peter S. Ho, Chairman, President, and CEO.  “We were pleased to see the growth in total loans this quarter and strong mortgage banking results.  Our overall credit quality is improving, which allowed us to further reduce our reserves.  Capital continues to be strong.”
 
The return on average assets for the third quarter of 2012 was 1.22 percent, up from 1.19 percent in the second quarter of 2012.  The return on average equity for the third quarter was 16.02 percent compared to 16.19 percent for the previous quarter.  The efficiency ratio for the third quarter of 2012 was 58.13 percent compared to 56.77 percent in the previous quarter.
 
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Bank of Hawaii Corporation Third Quarter 2012 Financial Results	 	Page 2	
 
For the nine months ended September 30, 2012, net income was $125.8 million, up $5.0 million compared to net income of $120.8 million for the same period last year.  Diluted earnings per share were $2.77 for the nine-month period in 2012, up $0.23 from diluted earnings per share of $2.54 for the same period in 2011.  The year-to-date return on average assets was 1.23 percent compared to 1.24 percent for the same period in 2011.  The year-to-date return on average equity was 16.49 percent, up from 15.85 percent for the nine months ended September 30, 2011.  The efficiency ratio for the nine-month period ended September 30, 2012 was 57.76 percent, down from 58.86 percent for the same period last year.
 
Results for the nine months ended September 30, 2012 included a gain of $3.5 million on the early termination of leveraged leases for two cargo ships offset by a loss of $1.0 million on the sale of an aircraft lease, expenses of $1.2 million for the final phase of a refresh of the Company’s personal computers, and expenses of $1.0 million related to the launch of a new consumer credit card product.  Results for the same period in 2011 included net gains of $6.1 million on the sales of investment securities and a gain of $2.0 million 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 and a $2.0 million donation to the Bank of Hawaii Foundation.
 
Financial Highlights
 
Net interest income, on a taxable-equivalent basis, for the third quarter of 2012 was $96.2 million, down $1.7 million from net interest income of $97.9 million in the second quarter of 2012, and down $0.9 million from net interest income of $97.1 million in the third quarter of 2011.  For the nine months ended September 30, 2012, net interest income, on a taxable-equivalent basis, was $294.0 million compared to $295.1 million for the same period in 2011.  Analyses of the changes in net interest income are included in Tables 8a, 8b and 8c.
 
The net interest margin was 2.98 percent for the third quarter of 2012, unchanged from the second quarter of 2012, and down 11 basis points from the net interest margin of 3.09 percent in the third quarter of 2011.   For the nine months ended September 30, 2012, the net interest margin was 3.01 percent compared to 3.16 percent for the same nine months in 2011.
 
During the third quarter of 2012 the Company did not record a provision for credit losses, although net charge-offs were $1.5 million during the quarter.  During the second quarter of 2012 the provision for credit losses was $0.6 million, or $3.2 million less than net charge-offs.   During the third quarter of 2011 the provision for credit losses was $2.2 million, or $1.6 million less than net charge-offs.  For the nine months ended September 30, 2012, the provision for credit losses was $1.0 million compared to $10.5 million for the same period in 2011.
 
Noninterest income was $52.4 million for the third quarter of 2012; an increase of $5.5 million compared to noninterest income of $46.8 million in the second quarter of 2012, and was up $1.5 million from noninterest income of $50.9 million in the third quarter of 2011.  Mortgage banking produced noninterest income of $11.7 million in the third quarter of 2012 compared to $7.6 million in the second quarter of 2012 and $5.5 million in the third quarter last year.  There were no significant nonrecurring noninterest income items during the third quarter or second quarter of 2012.  Noninterest income in the third quarter of 2011 included a $2.0 million gain related to a contingent payment from the sale of the Company’s proprietary mutual funds in 2010.
 
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Bank of Hawaii Corporation Third Quarter 2012 Financial Results	 	Page 3	
 
Noninterest expense was $84.9 million in the third quarter of 2012, up $4.1 million from noninterest expense of $80.7 million in the previous quarter, and up $0.9 million from noninterest expense of $84.0 million in the same quarter last year.  Noninterest expense in the third quarter of 2012 included an increase in profit sharing and incentive accruals of $1.0 million, which is based in part on higher overall earnings, expenses of $1.0 million related to the launch of a new consumer credit card product, and $1.0 million in separation expense.  In addition, mortgage banking expenses, including overtime and commissions were elevated due to the increased mortgage banking activity.  There were no significant nonrecurring noninterest expense items during the second quarter of 2012.  Noninterest expense in the third quarter of 2011 included a donation of $2.0 million to the Bank of Hawaii Foundation.  An analysis of salary and benefit expenses is included in Table 9.
 
The effective tax rate for the third quarter of 2012 was 32.55 percent compared to 33.04 percent in the previous quarter and 29.58 percent in the same quarter last year.  The effective tax rate for the nine-month period ended September 30, 2012 was 31.06 percent compared to 30.54 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 13a and 13b.
 
Asset Quality
 
The Company’s overall asset quality continued to improve during the third quarter of 2012.  Total non-performing assets were $40.3 million at September 30, 2012, down from $41.5 million at June 30, 2012.  Non-performing assets remain elevated above historical levels due to the lengthy judiciary foreclosure process for residential mortgage loans.  As a percentage of total loans and leases and foreclosed real estate, non-performing assets were 0.70 percent at September 30, 2012, down from 0.73 percent at June 30, 2012 and 0.71 percent at September 30, 2011.
 
Accruing loans and leases past due 90 days or more were $7.5 million at September 30, 2012, up slightly from $7.2 million at June 30, 2012 and down from $10.9 million at September 30, 2011.  Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $31.4 million at September 30, 2012, up slightly from $31.1 million at June 30, 2012 and down from $33.1 million at September 30, 2011.   Restructured loans are 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 11.
 
Net loans and leases charged off during the third quarter of 2012 were $1.5 million or 0.10 percent annualized of total average loans and leases outstanding.  Loan and lease charge-offs of $5.0 million during the quarter were partially offset by recoveries of $3.6 million.  Net charge-offs in the second quarter of 2012 were $3.8 million, or 0.27 percent annualized of total average loans and leases outstanding, and comprised of $5.9 million in charge-offs partially offset by recoveries of $2.1 million.  Net charge-offs during the third quarter of 2011 were $3.7 million or 0.28 percent annualized of total average loans and leases outstanding, and comprised of $10.8 million in charge-offs partially offset by recoveries of $7.0 million.  Net charge-offs during the nine months ended September 30, 2012 were $8.6 million or 0.20 percent annualized compared to $14.4 million or 0.36 percent annualized for the same period in 2011.
 
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Bank of Hawaii Corporation Third Quarter 2012 Financial Results	 	Page 4	
 
The allowance for loan and lease losses was $131.0 million at September 30, 2012, down $1.5 million from the allowance for loan and lease losses of $132.4 million at June 30, 2012 and $143.4 million at September 30, 2011.  The ratio of the allowance for loan and lease losses to total loans and leases was 2.27 percent at September 30, 2012, down from 2.34 percent at June 30, 2012 and 2.68 percent at September 30, 2011.  The reserve for unfunded commitments at September 30, 2012 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 12.
 
Other Financial Highlights
 
Total assets were $13.38 billion at September 30, 2012, down from total assets of $13.92 billion at June 30, 2012, and up from $13.30 billion at September 30, 2011.  Average total assets were $13.49 billion during the third quarter of 2012, down from average assets of $13.75 billion during the previous quarter, and up from $13.13 billion during the third quarter last year.
 
Total loans and leases were $5.78 billion at September 30, 2012, up from $5.67 billion at June 30, 2012, and up from $5.35 billion at September 30, 2011 with growth in all categories except lease financing and residential lending.  Average total loans and leases were $5.72 billion during the third quarter of 2012, up from $5.64 billion during the previous quarter, and up from $5.34 billion during the third quarter last year.  Loan and lease portfolio balances, including the higher risk loans outstanding, are summarized in Table 10.
 
Consumer and commercial deposits remained stable during the third quarter of 2012.  Total deposit balances declined to $11.22 billion at September 30, 2012 primarily due to the previously mentioned decrease in public time deposits.  Average total deposits were $11.30 billion in the third quarter of 2012, up from average deposits of $10.62 billion during the previous quarter, and up from $9.87 billion during the third quarter last year.  Deposit balances are summarized in Tables 7a, 7b, and 10.
 
As a result of the reduction in deposits and increase in loans, the investment securities portfolio decreased to $6.60 billion at September 30, 2012, compared to $7.07 billion at June 30, 2012, and $6.97 billion at September 30, 2011.
 
During the third quarter of 2012, the Company repurchased 312.9 thousand shares of common stock at a total cost of $14.5 million under its share repurchase program.  The average cost was $46.62 per share repurchased.  From the beginning of the share repurchase program initiated during July 2001 through September 30, 2012, the Company has repurchased 49.9 million shares and returned over $1.8 billion to shareholders at an average cost of $36.28 per share.  From October 1 through October 19, 2012, the Company repurchased an additional 87.5 thousand shares of common stock at an average cost of $44.83 per share repurchased.  Remaining buyback authority under the share repurchase program was $80.5 million at October 19, 2012.
 
Total shareholders’ equity was $1.02 billion at September 30, 2012, up from $1.00 billion at June 30, 2012 and relatively unchanged from September 30, 2011.  The ratio of tangible common equity to risk-weighted assets was 17.43 percent at September 30, 2012, compared to 17.57 percent at June 30, 2012 and 18.90 percent at September 30, 2011.  The Tier 1 leverage ratio at September 30, 2012 was 6.78 percent, up from 6.57 percent at June 30, 2012 and down from 6.95 percent at September 30, 2011.
 
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Bank of Hawaii Corporation Third Quarter 2012 Financial Results	 	Page 5	
 
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, 2012 to shareholders of record at the close of business on November 30, 2012.
 
Hawaii Economy
 
Hawaii’s economy continued to improve during the third quarter of 2012 primarily due to increasing visitor arrivals and spending.  For the first eight months of 2012, total visitor arrivals increased 10.0 percent and visitor spending increased by 20.0 percent compared to the same period in 2011.  The most significant growth continues to come from international markets.  During 2012, hotel occupancy and revenue per available room also continued to improve.  The statewide seasonally adjusted unemployment rate declined to 5.7% in September 2012, compared to 7.8% nationally.  The median sales price for single-family homes and condominiums as well as closed sales on Oahu have increased through August 2012 compared to the prior year.
 
Conference Call Information
 
The Company will review its third quarter 2012 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 888-299-8538 and international participants should dial 617-786-2902.  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 22, 2012 by dialing 888-286-8010 in the United States or 617-801-6888 internationally and entering the pass code number 71907319 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, 2011, 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 .
 
# # # #

 
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)	 	2012	 	2012	 	2011	 	2012	 	2011	 	
For the Period:	 	 	 	 	 	 	 	 	 	 	 	
Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	93,632	 	$	95,381	 	$	96,766	 	$	286,961	 	$	293,962	 	
Provision for Credit Losses	 	-    	 	628	 	2,180	 	979	 	10,471	 	
Total Noninterest Income	 	52,374	 	46,848	 	50,863	 	147,304	 	154,248	 	
Total Noninterest Expense	 	84,878	 	80,747	 	83,955	 	250,832	 	263,811	 	
Net Income	 	41,232	 	40,747	 	43,306	 	125,789	 	120,814	 	
Basic Earnings Per Share	 	0.92	 	0.90	 	0.93	 	2.78	 	2.55	 	
Diluted Earnings Per Share	 	0.92	 	0.90	 	0.92	 	2.77	 	2.54	 	
Dividends Declared Per Share	 	0.45	 	0.45	 	0.45	 	1.35	 	1.35	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.22	%	1.19	%	1.31	%	1.23	%	1.24	%	
Return on Average Shareholders’ Equity	 	16.02	 	16.19	 	16.80	 	16.49	 	15.85	 	
Efficiency Ratio1	 	58.13	 	56.77	 	56.87	 	57.76	 	58.86	 	
Net Interest Margin2	 	2.98	 	2.98	 	3.09	 	3.01	 	3.16	 	
Dividend Payout Ratio3	 	48.91	 	50.00	 	48.39	 	48.56	 	52.94	 	
Average Shareholders’ Equity to Average Assets	 	7.59	 	7.36	 	7.79	 	7.47	 	7.83	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Balances	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases	 	$	5,716,421	 	$	5,641,588	 	$	5,340,406	 	$	5,640,733	 	$	5,326,209	 	
Average Assets	 	13,490,835	 	13,750,488	 	13,125,077	 	13,640,304	 	13,019,898	 	
Average Deposits	 	11,301,668	 	10,622,420	 	9,871,750	 	10,786,654	 	9,845,269	 	
Average Shareholders’ Equity	 	1,023,804	 	1,012,182	 	1,022,585	 	1,018,903	 	1,019,409	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Market Price Per Share of Common Stock	 	 	 	 	 	 	 	 	 	 	 	
Closing	 	45.62	 	45.95	 	36.40	 	45.62	 	36.40	 	
High	 	48.92	 	49.99	 	47.10	 	49.99	 	49.26	 	
Low	 	45.29	 	44.02	 	35.30	 	44.02	 	35.30	 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	September 30,	 	June 30,	 	December 31,	 	September 30,	 	
 	 	 	 	2012	 	2012	 	2011	 	2011	 	
As of Period End:	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	 	 	$	5,782,304	 	$	5,671,483	 	$	5,538,304	 	$	5,348,472	 	
Total Assets	 	 	 	13,382,425	 	13,915,626	 	13,846,391	 	13,304,758	 	
Total Deposits	 	 	 	11,220,547	 	11,547,993	 	10,592,623	 	10,009,013	 	
Long-Term Debt	 	 	 	28,065	 	28,075	 	30,696	 	30,705	 	
Total Shareholders’ Equity	 	 	 	1,024,562	 	1,003,825	 	1,002,667	 	1,017,775	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Asset Quality	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	 	 	$	130,971	 	$	132,443	 	$	138,606	 	$	143,410	 	
Non-Performing Assets	 	 	 	40,284	 	41,494	 	40,790	 	37,770	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Financial Ratios	 	 	 	 	 	 	 	 	 	 	 	
Allowance to Loans and Leases Outstanding	 	 	 	2.27	%	2.34	%	2.50	%	2.68	%	
Tier 1 Capital Ratio	 	 	 	16.12	 	16.41	 	16.68	 	17.57	 	
Total Capital Ratio	 	 	 	17.39	 	17.67	 	17.95	 	18.83	 	
Tier 1 Leverage Ratio	 	 	 	6.78	 	6.57	 	6.73	 	6.95	 	
Total Shareholders’ Equity to Total Assets	 	 	 	7.66	 	7.21	 	7.24	 	7.65	 	
Tangible Common Equity to Tangible Assets4	 	 	 	7.44	 	7.00	 	7.03	 	7.43	 	
Tangible Common Equity to Risk-Weighted Assets  4	 	 	 	17.43	 	17.57	 	17.93	 	18.90	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Non-Financial Data	 	 	 	 	 	 	 	 	 	 	 	
Full-Time Equivalent Employees	 	 	 	2,304	 	2,312	 	2,370	 	2,381	 	
Branches and Offices	 	 	 	77	 	77	 	81	 	82	 	
ATMs	 	 	 	495	 	494	 	506	 	508	 	
 
1  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
2  Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
3  Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.
4  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	
 
 	 	September 30,	 	June 30,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	2011	 	
 	 	 	 	 	 	 	 	 	 	
Total Shareholders’ Equity	 	$	1,024,562	 	$	1,003,825	 	$	1,002,667	 	$	1,017,775	 	
Less: Goodwill	 	31,517	 	31,517	 	31,517	 	31,517	 	
Intangible Assets	 	46	 	58	 	83	 	96	 	
Tangible Common Equity	 	$	992,999	 	$	972,250	 	$	971,067	 	$	986,162	 	
 	 	 	 	 	 	 	 	 	 	
Total Assets	 	$	13,382,425	 	$	13,915,626	 	$	13,846,391	 	$	13,304,758	 	
Less: Goodwill	 	31,517	 	31,517	 	31,517	 	31,517	 	
Intangible Assets	 	46	 	58	 	83	 	96	 	
Tangible Assets	 	$	13,350,862	 	$	13,884,051	 	$	13,814,791	 	$	13,273,145	 	
 	 	 	 	 	 	 	 	 	 	
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements	 	$	5,697,581	 	$	5,532,285	 	$	5,414,481	 	$	5,218,651	 	
 	 	 	 	 	 	 	 	 	 	
Total Shareholders’ Equity to Total Assets	 	7.66%	 	7.21%	 	7.24%	 	7.65%	 	
Tangible Common Equity to Tangible Assets (Non-GAAP)	 	7.44%	 	7.00%	 	7.03%	 	7.43%	 	
 	 	 	 	 	 	 	 	 	 	
Tier 1 Capital Ratio	 	16.12%	 	16.41%	 	16.68%	 	17.57%	 	
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)	 	17.43%	 	17.57%	 	17.93%	 	18.90%	 	

 
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)	 	2012	 	2012	 	2011	 	 	 	2012	 	2011	 	
Investment Securities Gains, Net	 	-    	 	-    	 	-    	 	 	 	-    	 	6,084	 	
Gain on Mutual Fund Sale	 	-    	 	-    	 	1,956	 	 	 	-    	 	1,956	 	
Gains (Losses) on Disposal of Leased Equipment	 	-    	 	-    	 	-    	 	 	 	2,473	 	-    	 	
Decrease in Allowance for Loan and Lease Losses	 	1,472	 	3,163	 	1,566	 	 	 	7,635	 	3,948	 	
Bank of Hawaii Charitable Foundation	 	-    	 	-    	 	(2,000	)	 	 	-    	 	(2,000	)	
PC Refresh	 	-    	 	-    	 	-    	 	 	 	(1,163	)	-    	 	
Legal Settlement Related to OD Claims	 	-    	 	-    	 	-    	 	 	 	-    	 	(9,000	)	
Significant Income (Expense) Items Before the Provision (Benefit) for Income Taxes	 	1,472	 	3,163	 	1,522	 	 	 	8,945	 	988	 	
Income Taxes Impact Related to Lease Transactions	 	-    	 	-    	 	-    	 	 	 	(2,733	)	-    	 	
Income Tax Impact	 	515	 	1,107	 	533	 	 	 	1,915	 	346	 	
Net Significant Income (Expense) Items	 	$	957	 	$	2,056	 	$	989	 	 	 	$	9,763	 	$	642	 	

 
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)	 	 	2012	 	2012	 	2011	 	 	 	2012	 	2011	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	 	$	64,668	 	$	63,910	 	$	65,344	 	 	 	$	193,269	 	$	197,479	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	 	15,922	 	16,988	 	23,097	 	 	 	50,623	 	84,256	 	
Held-to-Maturity	 	 	23,232	 	25,054	 	20,344	 	 	 	74,699	 	48,530	 	
Deposits	 	 	3	 	1	 	6	 	 	 	6	 	6	 	
Funds Sold	 	 	105	 	119	 	160	 	 	 	353	 	708	 	
Other	 	 	283	 	281	 	279	 	 	 	844	 	837	 	
Total Interest Income	 	 	104,213	 	106,353	 	109,230	 	 	 	319,794	 	331,816	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	 	2,931	 	3,219	 	4,561	 	 	 	9,623	 	14,585	 	
Securities Sold Under Agreements to Repurchase	 	 	7,185	 	7,250	 	7,400	 	 	 	21,739	 	21,779	 	
Funds Purchased	 	 	7	 	5	 	4	 	 	 	17	 	15	 	
Long-Term Debt	 	 	458	 	498	 	499	 	 	 	1,454	 	1,475	 	
Total Interest Expense	 	 	10,581	 	10,972	 	12,464	 	 	 	32,833	 	37,854	 	
Net Interest Income	 	 	93,632	 	95,381	 	96,766	 	 	 	286,961	 	293,962	 	
Provision for Credit Losses	 	 	-    	 	628	 	2,180	 	 	 	979	 	10,471	 	
Net Interest Income After Provision for Credit Losses	 	 	93,632	 	94,753	 	94,586	 	 	 	285,982	 	283,491	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	 	11,050	 	11,195	 	10,788	 	 	 	33,163	 	34,021	 	
Mortgage Banking	 	 	11,745	 	7,581	 	5,480	 	 	 	24,376	 	11,263	 	
Service Charges on Deposit Accounts	 	 	9,346	 	9,225	 	9,820	 	 	 	28,162	 	29,127	 	
Fees, Exchange, and Other Service Charges	 	 	11,907	 	12,326	 	16,219	 	 	 	36,632	 	47,826	 	
Investment Securities Gains (Losses), Net	 	 	13	 	-    	 	-    	 	 	 	(77	)	6,084	 	
Insurance	 	 	2,326	 	2,399	 	2,664	 	 	 	7,003	 	8,645	 	
Other	 	 	5,987	 	4,122	 	5,892	 	 	 	18,045	 	17,282	 	
Total Noninterest Income	 	 	52,374	 	46,848	 	50,863	 	 	 	147,304	 	154,248	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	 	47,231	 	44,037	 	44,307	 	 	 	138,292	 	137,889	 	
Net Occupancy	 	 	10,524	 	10,058	 	11,113	 	 	 	31,098	 	31,916	 	
Net Equipment	 	 	4,523	 	4,669	 	4,662	 	 	 	15,018	 	14,101	 	
Professional Fees	 	 	2,494	 	2,386	 	2,245	 	 	 	7,012	 	6,697	 	
FDIC Insurance	 	 	1,822	 	2,088	 	2,065	 	 	 	5,981	 	7,319	 	
Other	 	 	18,284	 	17,509	 	19,563	 	 	 	53,431	 	65,889	 	
Total Noninterest Expense	 	 	84,878	 	80,747	 	83,955	 	 	 	250,832	 	263,811	 	
Income Before Provision for Income Taxes	 	 	61,128	 	60,854	 	61,494	 	 	 	182,454	 	173,928	 	
Provision for Income Taxes	 	 	19,896	 	20,107	 	18,188	 	 	 	56,665	 	53,114	 	
Net Income	 	 	$	41,232	 	$	40,747	 	$	43,306	 	 	 	$	125,789	 	$	120,814	 	
Basic Earnings Per Share	 	 	$	0.92	 	$	0.90	 	$	0.93	 	 	 	$	2.78	 	$	2.55	 	
Diluted Earnings Per Share	 	 	$	0.92	 	$	0.90	 	$	0.92	 	 	 	$	2.77	 	$	2.54	 	
Dividends Declared Per Share	 	 	$	0.45	 	$	0.45	 	$	0.45	 	 	 	$	1.35	 	$	1.35	 	
Basic Weighted Average Shares	 	 	44,913,348	 	45,221,293	 	46,806,439	 	 	 	45,280,541	 	47,358,049	 	
Diluted Weighted Average Shares	 	 	45,050,638	 	45,347,368	 	46,934,140	 	 	 	45,421,624	 	47,531,066	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Comprehensive Income	 	Table 4 	
 
 	 	Three Months Ended	 	 	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	 	 	September 30,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	 	 	2012	 	2011	 	
Net Income	 	$	41,232	 	$	40,747	 	$	43,306	 	 	 	$	125,789	 	$	120,814	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Unrealized Gains on Investment Securities	 	9,770	 	3,387	 	18,611	 	 	 	6,703	 	18,376	 	
Defined Benefit Plans	 	152	 	153	 	365	 	 	 	458	 	1,413	 	
Other Comprehensive Income	 	9,922	 	3,540	 	18,976	 	 	 	7,161	 	19,789	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive Income	 	$	51,154	 	$	44,287	 	$	62,282	 	 	 	$	132,950	 	$	140,603	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Condition	 	Table 5 	
 
 	 	September 30,	 	June 30,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	2011	 	
Assets	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	4,673	 	$	3,057	 	$	3,036	 	$	3,543	 	
Funds Sold	 	251,664	 	499,338	 	512,384	 	242,062	 	
Investment Securities	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	3,124,209	 	3,339,472	 	3,451,885	 	4,448,898	 	
Held to Maturity (Fair Value of $3,587,997; $3,828,954; $3,754,206; and $2,610,081)	 	3,475,259	 	3,729,665	 	3,657,796	 	2,520,422	 	
Loans Held for Sale	 	25,971	 	14,223	 	18,957	 	12,745	 	
Loans and Leases	 	5,782,304	 	5,671,483	 	5,538,304	 	5,348,472	 	
Allowance for Loan and Lease Losses	 	(130,971	)	(132,443	)	(138,606	)	(143,410	)	
Net Loans and Leases	 	5,651,333	 	5,539,040	 	5,399,698	 	5,205,062	 	
Total Earning Assets	 	12,533,109	 	13,124,795	 	13,043,756	 	12,432,732	 	
Cash and Noninterest-Bearing Deposits	 	153,599	 	131,845	 	154,489	 	206,875	 	
Premises and Equipment	 	107,144	 	107,421	 	103,550	 	104,509	 	
Customers’ Acceptances	 	242	 	176	 	476	 	749	 	
Accrued Interest Receivable	 	47,192	 	45,044	 	43,510	 	43,319	 	
Foreclosed Real Estate	 	3,067	 	2,569	 	3,042	 	3,341	 	
Mortgage Servicing Rights	 	23,980	 	23,254	 	24,279	 	23,990	 	
Goodwill	 	31,517	 	31,517	 	31,517	 	31,517	 	
Other Assets	 	482,575	 	449,005	 	441,772	 	457,726	 	
Total Assets	 	$	13,382,425	 	$	13,915,626	 	$	13,846,391	 	$	13,304,758	 	
 	 	 	 	 	 	 	 	 	 	
Liabilities	 	 	 	 	 	 	 	 	 	
Deposits	 	 	 	 	 	 	 	 	 	
Noninterest-Bearing Demand	 	$	2,985,561	 	$	3,105,798	 	$	2,850,923	 	$	2,702,296	 	
Interest-Bearing Demand	 	2,034,319	 	2,063,070	 	2,005,983	 	1,745,812	 	
Savings	 	4,480,733	 	4,435,894	 	4,398,638	 	4,449,351	 	
Time	 	1,719,934	 	1,943,231	 	1,337,079	 	1,111,554	 	
Total Deposits	 	11,220,547	 	11,547,993	 	10,592,623	 	10,009,013	 	
Funds Purchased	 	10,942	 	13,756	 	10,791	 	9,882	 	
Short-Term Borrowings	 	-    	 	-    	 	-    	 	6,400	 	
Securities Sold Under Agreements to Repurchase	 	818,080	 	1,065,653	 	1,925,998	 	1,929,266	 	
Long-Term Debt	 	28,065	 	28,075	 	30,696	 	30,705	 	
Banker’s Acceptances	 	242	 	176	 	476	 	749	 	
Retirement Benefits Payable	 	41,872	 	41,812	 	46,949	 	30,704	 	
Accrued Interest Payable	 	5,997	 	5,114	 	5,330	 	6,751	 	
Taxes Payable and Deferred Taxes	 	94,369	 	86,095	 	95,840	 	114,842	 	
Other Liabilities	 	137,749	 	123,127	 	135,021	 	148,671	 	
Total Liabilities	 	12,357,863	 	12,911,801	 	12,843,724	 	12,286,983	 	
Shareholders’ Equity	 	 	 	 	 	 	 	 	 	
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: September 30, 2012 - 57,315,093 / 45,004,813; June 30, 2012 - 57,301,892 / 45,248,277; December 31, 2011 - 57,134,470 / 45,947,116; and September 30, 2011 - 57,132,310 / 46,570,413)	 	571	 	571	 	571	 	571	 	
Capital Surplus	 	513,758	 	511,729	 	507,558	 	503,255	 	
Accumulated Other Comprehensive Income	 	42,424	 	32,502	 	35,263	 	46,754	 	
Retained Earnings	 	1,065,245	 	1,044,588	 	1,003,938	 	986,202	 	
Treasury Stock, at Cost (Shares: September 30, 2012 - 12,310,280; June 30, 2012 - 12,053,615;  December 31, 2011 - 11,187,354; and September 30, 2011 - 10,561,897)	 	(597,436	)	(585,565	)	(544,663	)	(519,007	)	
Total Shareholders’ Equity	 	1,024,562	 	1,003,825	 	1,002,667	 	1,017,775	 	
Total Liabilities and Shareholders’ Equity	 	$	13,382,425	 	$	13,915,626	 	$	13,846,391	 	$	13,304,758	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Shareholders’ Equity	 	Table 6 	
 
 	 	 	 	 	 	 	 	Accum.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Other	 	 	 	 	 	 	 	
 	 	Common Shares	 	Common	 	Capital	 	Comprehensive	 	Retained	 	Treasury	 	 	 	
(dollars in thousands)	 	Outstanding	 	Stock	 	Surplus	 	Income	 	Earnings	 	Stock	 	Total	 	
Balance as of December 31, 2011	 	45,947,116	 	$	571	 	$	507,558	 	$	35,263	 	$	1,003,938	 	$	(544,663	)	$	1,002,667	 	
Net Income	 	-	 	-	 	-	 	-	 	125,789	 	-	 	125,789	 	
Other Comprehensive Income	 	-	 	-	 	-	 	7,161	 	-	 	-	 	7,161	 	
Share-Based Compensation	 	-	 	-	 	5,687	 	-	 	-	 	-	 	5,687	 	
Common Stock Issued under Purchase and Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Compensation Plans and Related Tax Benefits	 	471,104	 	-	 	513	 	-	 	(3,023	)	13,472	 	10,962	 	
Common Stock Repurchased	 	(1,413,407	)	-	 	-	 	-	 	-	 	(66,245	)	(66,245	)	
Cash Dividends Paid ($1.35 per share)	 	-	 	-	 	-	 	-	 	(61,459	)	-	 	(61,459	)	
Balance as of September 30, 2012	 	45,004,813	 	$	571	 	$	513,758	 	$	42,424	 	$	1,065,245	 	$	(597,436	)	$	1,024,562	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance as of December 31, 2010	 	48,097,672	 	$	570	 	$	500,888	 	$	26,965	 	$	932,629	 	$	(449,919	)	$	1,011,133	 	
Net Income	 	-	 	-	 	-	 	-	 	120,814	 	-	 	120,814	 	
Other Comprehensive Income	 	-	 	-	 	-	 	19,789	 	-	 	-	 	19,789	 	
Share-Based Compensation	 	-	 	-	 	2,001	 	-	 	-	 	-	 	2,001	 	
Common Stock Issued under Purchase and Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Compensation Plans and Related Tax Benefits	 	309,108	 	1	 	366	 	-	 	(3,193	)	13,303	 	10,477	 	
Common Stock Repurchased	 	(1,836,367	)	-	 	-	 	-	 	-	 	(82,391	)	(82,391	)	
Cash Dividends Paid ($1.35 per share)	 	-	 	-	 	-	 	-	 	(64,048	)	-	 	(64,048	)	
Balance as of September 30, 2011	 	46,570,413	 	$	571	 	$	503,255	 	$	46,754	 	$	986,202	 	$	(519,007	)	$	1,017,775	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Average Balances and Interest Rates - Taxable-Equivalent Basis	 	Table 7a 	
 
 	 	Three Months Ended	 	 	Three Months Ended	 	Three Months Ended	 	
 	 	September 30, 2012	 	 	 	June 30, 2012	 	September 30, 2011	 	
 	 	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	 	 $	4.0	 	$	-    	 	0.33	%	 	$	3.0	 	$	-    	 	0.12	%	$ 	3.7	 	$	-    	 	0.56	%	
Funds Sold	 	221.5	 	0.1	 	0.19	 	 	237.8	 	0.1	 	0.20	 	309.4	 	0.2	 	0.20	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	3,247.8	 	18.3	 	2.26	 	 	3,410.4	 	19.4	 	2.27	 	4,309.3	 	23.5	 	2.18	 	
Held-to-Maturity	 	3,617.3	 	23.2	 	2.57	 	 	3,788.9	 	25.1	 	2.65	 	2,511.0	 	20.3	 	3.24	 	
Loans Held for Sale	 	15.8	 	0.2	 	4.32	 	 	12.1	 	0.1	 	4.22	 	9.2	 	0.1	 	4.87	 	
Loans and Leases1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	797.2	 	7.7	 	3.86	 	 	786.3	 	7.7	 	3.93	 	815.5	 	8.2	 	3.97	 	
Commercial Mortgage	 	993.2	 	10.8	 	4.32	 	 	953.5	 	10.4	 	4.40	 	876.7	 	10.7	 	4.85	 	
Construction	 	100.1	 	1.3	 	4.97	 	 	99.7	 	1.3	 	5.07	 	74.5	 	1.0	 	5.15	 	
Commercial Lease Financing	 	278.5	 	1.7	 	2.42	 	 	284.5	 	1.7	 	2.36	 	314.6	 	2.0	 	2.61	 	
Residential Mortgage	 	2,391.8	 	28.1	 	4.70	 	 	2,371.7	 	27.9	 	4.71	 	2,129.8	 	27.8	 	5.23	 	
Home Equity	 	770.2	 	8.3	 	4.28	 	 	772.3	 	8.4	 	4.36	 	780.5	 	9.3	 	4.72	 	
Automobile	 	194.9	 	2.9	 	5.90	 	 	193.7	 	2.9	 	6.03	 	191.4	 	3.2	 	6.66	 	
Other2	 	190.5	 	3.9	 	8.09	 	 	179.9	 	3.6	 	8.12	 	157.4	 	3.0	 	7.50	 	
Total Loans and Leases	 	5,716.4	 	64.7	 	4.51	 	 	5,641.6	 	63.9	 	4.54	 	5,340.4	 	65.2	 	4.86	 	
Other	 	80.1	 	0.3	 	1.41	 	 	80.0	 	0.3	 	1.41	 	79.9	 	0.3	 	1.40	 	
Total Earning Assets3	 	12,902.9	 	106.8	 	3.30	 	 	13,173.8	 	108.9	 	3.31	 	12,562.9	 	109.6	 	3.48	 	
Cash and Noninterest-Bearing Deposits	 	134.9	 	 	 	 	 	 	131.7	 	 	 	 	 	135.1	 	 	 	 	 	
Other Assets	 	453.0	 	 	 	 	 	 	445.0	 	 	 	 	 	427.1	 	 	 	 	 	
Total Assets	 	 $	13,490.8	 	 	 	 	 	 	$	13,750.5	 	 	 	 	 	$ 	13,125.1	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	1,968.8	 	0.1	 	0.03	 	 	1,906.1	 	0.1	 	0.03	 	1,772.5	 	0.2	 	0.04	 	
Savings	 	4,456.2	 	1.0	 	0.09	 	 	4,444.5	 	1.1	 	0.10	 	4,497.1	 	1.8	 	0.16	 	
Time	 	1,823.2	 	1.8	 	0.38	 	 	1,253.9	 	2.0	 	0.63	 	1,069.4	 	2.6	 	0.96	 	
Total Interest-Bearing Deposits	 	8,248.2	 	2.9	 	0.14	 	 	7,604.5	 	3.2	 	0.17	 	7,339.0	 	4.6	 	0.25	 	
Short-Term Borrowings	 	18.5	 	-    	 	0.15	 	 	15.0	 	-    	 	0.14	 	19.0	 	-    	 	0.08	 	
Securities Sold Under Agreements to Repurchase	 	853.0	 	7.2	 	3.30	 	 	1,808.5	 	7.3	 	1.59	 	1,908.9	 	7.4	 	1.52	 	
Long-Term Debt	 	28.0	 	0.5	 	6.52	 	 	30.6	 	0.5	 	6.51	 	30.7	 	0.5	 	6.50	 	
Total Interest-Bearing Liabilities	 	9,147.7	 	10.6	 	0.46	 	 	9,458.6	 	11.0	 	0.46	 	9,297.6	 	12.5	 	0.53	 	
Net Interest Income	 	 	 	$	96.2	 	 	 	 	 	 	$	97.9	 	 	 	 	 	$	97.1	 	 	 	
Interest Rate Spread	 	 	 	 	 	2.84	%	 	 	 	 	 	2.85	%	 	 	 	 	2.95	%	
Net Interest Margin	 	 	 	 	 	2.98	%	 	 	 	 	 	2.98	%	 	 	 	 	3.09	%	
Noninterest-Bearing Demand Deposits	 	3,053.5	 	 	 	 	 	 	3,017.9	 	 	 	 	 	2,532.8	 	 	 	 	 	
Other Liabilities	 	265.8	 	 	 	 	 	 	261.8	 	 	 	 	 	272.1	 	 	 	 	 	
Shareholders’ Equity	 	1,023.8	 	 	 	 	 	 	1,012.2	 	 	 	 	 	1,022.6	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	 $	13,490.8	 	 	 	 	 	 	$	13,750.5	 	 	 	 	 	$ 	13,125.1	 	 	 	 	 	

1	Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.	
2	Comprised of other consumer revolving credit, installment, and consumer lease financing.	
3	Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $2,529,000, $2,481,000, and $364,000 for the three months ended September 30, 2012, June 30, 2012, and September 30, 2011, respectively.	

 
Bank of Hawaii Corporation and Subsidiaries	 	
Average Balances and Interest Rates - Taxable-Equivalent Basis	Table 7b 	
 
 	 	Nine Months Ended	 	 	Nine Months Ended	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	September 30, 2012	 	 	September 30, 2011	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Average	 	 	Income/	 	 	Yield/	 	 	Average	 	 	Income/	 	Yield/	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(dollars in millions)	 	Balance	 	 	Expense	 	 	Rate	 	 	Balance	 	 	Expense	 	Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	3.4	 	 	$	-    	 	 	0.24	%	 	$	4.4	 	 	$	-    	 	0.18	%	
Funds Sold	 	240.5	 	 	0.4	 	 	0.19	 	 	427.8	 	 	0.7	 	0.22	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	3,369.5	 	 	57.4	 	 	2.27	 	 	4,667.6	 	 	85.4	 	2.44	 	
Held-to-Maturity	 	3,714.2	 	 	74.7	 	 	2.68	 	 	1,949.2	 	 	48.6	 	3.32	 	
Loans Held for Sale	 	13.3	 	 	0.4	 	 	4.26	 	 	9.7	 	 	0.3	 	4.46	 	
Loans and Leases1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial 	 	796.5	 	 	23.5	 	 	3.94	 	 	788.0	 	 	23.8	 	4.03	 	
Commercial Mortgage	 	962.9	 	 	31.7	 	 	4.40	 	 	873.1	 	 	31.9	 	4.88	 	
Construction	 	101.1	 	 	3.9	 	 	5.13	 	 	78.1	 	 	3.0	 	5.14	 	
Commercial Lease Financing	 	285.7	 	 	5.1	 	 	2.37	 	 	325.8	 	 	6.6	 	2.72	 	
Residential Mortgage	 	2,342.8	 	 	83.8	 	 	4.77	 	 	2,114.7	 	 	84.2	 	5.31	 	
Home Equity	 	773.8	 	 	25.2	 	 	4.35	 	 	787.2	 	 	28.4	 	4.82	 	
Automobile	 	193.9	 	 	8.8	 	 	6.05	 	 	195.7	 	 	10.1	 	6.91	 	
Other2	 	184.0	 	 	11.2	 	 	8.10	 	 	163.6	 	 	9.2	 	7.51	 	
Total Loans and Leases	 	5,640.7	 	 	193.2	 	 	4.57	 	 	5,326.2	 	 	197.2	 	4.94	 	
Other	 	80.0	 	 	0.8	 	 	1.41	 	 	79.9	 	 	0.8	 	1.40	 	
Total Earning Assets3	 	13,061.6	 	 	326.9	 	 	3.34	 	 	12,464.8	 	 	333.0	 	3.56	 	
Cash and Noninterest-Bearing Deposits	 	134.6	 	 	 	 	 	 	 	 	133.0	 	 	 	 	 	 	
Other Assets	 	444.1	 	 	 	 	 	 	 	 	422.1	 	 	 	 	 	 	
Total Assets	 	$	13,640.3	 	 	 	 	 	 	 	 	$	13,019.9	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	1,914.2	 	 	0.3	 	 	0.03	 	 	1,782.2	 	 	0.6	 	0.04	 	
Savings	 	4,446.6	 	 	3.5	 	 	0.10	 	 	4,518.9	 	 	5.9	 	0.18	 	
Time	 	1,447.1	 	 	5.8	 	 	0.53	 	 	1,041.7	 	 	8.1	 	1.04	 	
Total Interest-Bearing Deposits	 	7,807.9	 	 	9.6	 	 	0.16	 	 	7,342.8	 	 	14.6	 	0.27	 	
Short-Term Borrowings	 	16.4	 	 	-    	 	 	0.14	 	 	17.4	 	 	-    	 	0.12	 	
Securities Sold Under Agreements to Repurchase	 	1,523.4	 	 	21.8	 	 	1.88	 	 	1,844.7	 	 	21.8	 	1.56	 	
Long-Term Debt	 	29.8	 	 	1.5	 	 	6.51	 	 	32.0	 	 	1.5	 	6.15	 	
Total Interest-Bearing Liabilities	 	9,377.5	 	 	32.9	 	 	0.46	 	 	9,236.9	 	 	37.9	 	0.54	 	
Net Interest Income	 	 	 	 	$	294.0	 	 	 	 	 	 	 	 	$	295.1	 	 	 	
Interest Rate Spread	 	 	 	 	 	 	 	2.88	%	 	 	 	 	 	 	3.02	%	
Net Interest Margin	 	 	 	 	 	 	 	3.01	%	 	 	 	 	 	 	3.16	%	
Noninterest-Bearing Demand Deposits	 	2,978.8	 	 	 	 	 	 	 	 	2,502.5	 	 	 	 	 	 	
Other Liabilities	 	265.1	 	 	 	 	 	 	 	 	261.1	 	 	 	 	 	 	
Shareholders’ Equity	 	1,018.9	 	 	 	 	 	 	 	 	1,019.4	 	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	13,640.3	 	 	 	 	 	 	 	 	$	13,019.9	 	 	 	 	 	 	

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 $7,080,000 and $1,142,000 for the nine months ended September 30, 2012 and 2011, respectively.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	 	
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis	 	Table 8a 	
 
 	 	Three Months Ended September 30, 2012	 	
 	 	 	 	
 	 	Compared to June 30, 2012	 	
 	 	 	 	 	 	 	 	 	 	
(dollars in millions)	 	Volume 1	 	 	Rate 1	 	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	 	 	
Investment Securities	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	$	(0.9	)	 	$	(0.2	)	 	$	(1.1	)	
Held-to-Maturity	 	(1.2	)	 	(0.7	)	 	(1.9	)	
Loans Held for Sale	 	0.1	 	 	-    	 	 	0.1	 	
Loans and Leases	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	0.1	 	 	(0.1	)	 	-    	 	
Commercial Mortgage	 	0.6	 	 	(0.2	)	 	0.4	 	
Residential Mortgage	 	0.2	 	 	-    	 	 	0.2	 	
Home Equity	 	-    	 	 	(0.1	)	 	(0.1	)	
Other2	 	0.3	 	 	-    	 	 	0.3	 	
Total Loans and Leases	 	1.2	 	 	(0.4	)	 	0.8	 	
Total Change in Interest Income	 	(0.8	)	 	(1.3	)	 	(2.1	)	
 	 	 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	
Savings	 	-    	 	 	(0.1	)	 	(0.1	)	
Time	 	0.7	 	 	(0.9	)	 	(0.2	)	
Total Interest-Bearing Deposits	 	0.7	 	 	(1.0	)	 	(0.3	)	
Securities Sold Under Agreements to Repurchase	 	(5.2	)	 	5.1	 	 	(0.1	)	
Total Change in Interest Expense	 	(4.5	)	 	4.1	 	 	(0.4	)	
 	 	 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	3.7	 	 	$	(5.4	)	 	$	(1.7	)	

1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
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 8b 	
 
 	 	Three Months Ended September 30, 2012	 	
 	 	 	 	
 	 	Compared to September 30, 2011	 	
 	 	 	 	
(dollars in millions)	 	Volume 1	 	 	Rate 1	 	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	 	 	
Funds Sold	 	$	(0.1	)	 	$	-    	 	 	$	(0.1	)	
Investment Securities	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	(6.0	)	 	0.8	 	 	(5.2	)	
Held-to-Maturity	 	7.7	 	 	(4.8	)	 	2.9	 	
Loans Held for Sale	 	0.1	 	 	-    	 	 	0.1	 	
Loans and Leases	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(0.2	)	 	(0.3	)	 	(0.5	)	
Commercial Mortgage	 	1.3	 	 	(1.2	)	 	0.1	 	
Construction	 	0.3	 	 	-    	 	 	0.3	 	
Commercial Lease Financing	 	(0.2	)	 	(0.1	)	 	(0.3	)	
Residential Mortgage	 	3.3	 	 	(3.0	)	 	0.3	 	
Home Equity	 	(0.1	)	 	(0.9	)	 	(1.0	)	
Automobile	 	0.1	 	 	(0.4	)	 	(0.3	)	
Other2	 	0.7	 	 	0.2	 	 	0.9	 	
Total Loans and Leases	 	5.2	 	 	(5.7	)	 	(0.5	)	
Total Change in Interest Income	 	6.9	 	 	(9.7	)	 	(2.8	)	
 	 	 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	
Demand	 	-    	 	 	(0.1	)	 	(0.1	)	
Savings	 	-    	 	 	(0.8	)	 	(0.8	)	
Time	 	1.2	 	 	(2.0	)	 	(0.8	)	
Total Interest-Bearing Deposits	 	1.2	 	 	(2.9	)	 	(1.7	)	
Securities Sold Under Agreements to Repurchase	 	(5.6	)	 	5.4	 	 	(0.2	)	
Total Change in Interest Expense	 	(4.4	)	 	2.5	 	 	(1.9	)	
 	 	 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	11.3	 	 	$	(12.2	)	 	$	(0.9	)	

1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
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 8c 	
 
 	 	Nine Months Ended September 30, 2012	 	
 	 	 	 	
 	 	Compared to September 30, 2011	 	
 	 	 	 	
(dollars in millions)	 	Volume 1	 	 	Rate 1	 	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	 	 	
Funds Sold	 	$	(0.2	)	 	$	(0.1	)	 	$	(0.3	)	
Investment Securities	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	(22.4	)	 	(5.6	)	 	(28.0	)	
Held-to-Maturity	 	36.9	 	 	(10.8	)	 	26.1	 	
Loans Held for Sale	 	0.1	 	 	-    	 	 	0.1	 	
Loans and Leases	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	0.3	 	 	(0.6	)	 	(0.3	)	
Commercial Mortgage	 	3.1	 	 	(3.3	)	 	(0.2	)	
Construction	 	0.9	 	 	-    	 	 	0.9	 	
Commercial Lease Financing	 	(0.8	)	 	(0.7	)	 	(1.5	)	
Residential Mortgage	 	8.6	 	 	(9.0	)	 	(0.4	)	
Home Equity	 	(0.5	)	 	(2.7	)	 	(3.2	)	
Automobile	 	(0.1	)	 	(1.2	)	 	(1.3	)	
Other2	 	1.2	 	 	0.8	 	 	2.0	 	
Total Loans and Leases	 	12.7	 	 	(16.7	)	 	(4.0	)	
Total Change in Interest Income	 	27.1	 	 	(33.2	)	 	(6.1	)	
 	 	 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	
Demand	 	-    	 	 	(0.3	)	 	(0.3	)	
Savings	 	(0.1	)	 	(2.3	)	 	(2.4	)	
Time	 	2.5	 	 	(4.8	)	 	(2.3	)	
Total Interest-Bearing Deposits	 	2.4	 	 	(7.4	)	 	(5.0	)	
Securities Sold Under Agreements to Repurchase	 	(4.1	)	 	4.1	 	 	-    	 	
Long-Term Debt	 	(0.1	)	 	0.1	 	 	-    	 	
Total Change in Interest Expense	 	(1.8	)	 	(3.2	)	 	(5.0	)	
 	 	 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	28.9	 	 	(30.0	)	 	(1.1	)	

 
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Salaries and Benefits	 	Table 9 	
 
 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	2012	 	2011	 	
Salaries	 	 $	29,312	 	$	27,831	 	$	28,965 	 	 $	85,830	 	$	87,182	 	
Incentive Compensation	 	4,492	 	4,132	 	4,777 	 	12,678	 	12,486	 	
Share-Based Compensation and Cash Grants for the Purchase of Company Stock	 	1,817	 	1,758	 	743 	 	5,260	 	3,901	 	
Commission Expense	 	1,750	 	1,754	 	1,572 	 	5,040	 	4,788	 	
Retirement and Other Benefits	 	4,322	 	3,481	 	3,634 	 	12,193	 	12,400	 	
Payroll Taxes	 	2,267	 	2,437	 	2,241 	 	8,522	 	8,615	 	
Medical, Dental, and Life Insurance	 	2,255	 	2,239	 	2,056 	 	6,931	 	6,717	 	
Separation Expense	 	1,016	 	405	 	319 	 	1,838	 	1,800	 	
Total Salaries and Benefits	 	 $	47,231	 	$	44,037	 	$	44,307 	 	 $	138,292	 	$	137,889	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Loan and Lease Portfolio Balances	 	Table 10 	
 
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2012	 	2012	 	2012	 	2011	 	2011	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	808,621	 	$	781,688	 	$	788,718	 	$	817,170	 	$	790,294	 	
Commercial Mortgage	 	1,039,556	 	961,984	 	948,196	 	938,250	 	922,075	 	
Construction	 	101,818	 	97,668	 	110,184	 	98,669	 	69,635	 	
Lease Financing	 	277,328	 	281,020	 	285,860	 	311,928	 	312,159	 	
Total Commercial	 	2,227,323	 	2,122,360	 	2,132,958	 	2,166,017	 	2,094,163	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	2,392,871	 	2,401,331	 	2,319,485	 	2,215,892	 	2,130,589	 	
Home Equity	 	770,284	 	766,839	 	773,643	 	780,691	 	775,105	 	
Automobile	 	200,788	 	194,339	 	193,851	 	192,506	 	191,497	 	
Other1	 	191,038	 	186,614	 	178,995	 	183,198	 	157,118	 	
Total Consumer	 	3,554,981	 	3,549,123	 	3,465,974	 	3,372,287	 	3,254,309	 	
Total Loans and Leases	 	$	5,782,304	 	$	5,671,483	 	$	5,598,932	 	$	5,538,304	 	$	5,348,472	 	

Higher Risk Loans Outstanding	 	 	
 
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2012	 	2012	 	2012	 	2011	 	2011	 	
Residential Land Loans2	 	16,513	 	16,703	 	17,602	 	18,163	 	18,305	 	
Home Equity Loans3	 	19,774	 	22,029	 	21,359	 	21,413	 	22,321	 	
Air Transportation4	 	27,765	 	27,633	 	27,548	 	36,144	 	36,511	 	
Total Higher Risk Loans	 	$	64,052	 	$	66,365	 	$	66,509	 	$	75,720	 	$	77,137	 	

 

1         Comprised of other revolving credit, installment, and lease financing.
 
2         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.
 
3         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%.
 
4         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)	 	2012	 	2012	 	2012	 	2011	 	2011	 	
Consumer	 	$	5,369,724	 	$	5,360,325	 	$	5,377,804	 	$	5,241,827	 	$	5,137,548	 	
Commercial	 	4,394,745	 	4,403,095	 	4,307,931	 	4,320,712	 	4,275,915	 	
Public and Other	 	1,456,078	 	1,784,573	 	935,435	 	1,030,084	 	595,550	 	
Total Deposits	 	$	11,220,547	 	$	11,547,993	 	$	10,621,170	 	$	10,592,623	 	$	10,009,013	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
 	 	 	
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More	 	Table 11	
 
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2012	 	2012	 	2012	 	2011	 	2011	 	
Non-Performing Assets	 	 	 	 	 	 	 	 	 	 	 	
Non-Accrual Loans and Leases	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	5,635	 	$	5,778	 	$	5,852	 	$	6,243	 	$	6,593	 	
Commercial Mortgage	 	2,671	 	2,737	 	2,113	 	2,140	 	2,188	 	
Construction	 	953	 	1,182	 	1,482	 	2,080	 	-	 	
Lease Financing	 	-	 	-	 	4	 	5	 	6	 	
Total Commercial	 	9,259	 	9,697	 	9,451	 	10,468	 	8,787	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	25,456	 	26,803	 	26,356	 	25,256	 	23,779	 	
Home Equity	 	2,502	 	2,425	 	2,069	 	2,024	 	1,863	 	
Total Consumer	 	27,958	 	29,228	 	28,425	 	27,280	 	25,642	 	
Total Non-Accrual Loans and Leases	 	37,217	 	38,925	 	37,876	 	37,748	 	34,429	 	
Foreclosed Real Estate	 	3,067	 	2,569	 	3,530	 	3,042	 	3,341	 	
Total Non-Performing Assets	 	$	40,284	 	$	41,494	 	$	41,406	 	$	40,790	 	$	37,770	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Accruing Loans and Leases Past Due 90 Days or More	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	-	 	$	1	 	$	2	 	$	1	 	$	-	 	
Total Commercial	 	-	 	1	 	2	 	1	 	-	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	3,988	 	4,229	 	6,590	 	6,422	 	7,664	 	
Home Equity	 	2,755	 	2,445	 	2,829	 	2,194	 	2,639	 	
Automobile	 	154	 	98	 	124	 	170	 	138	 	
Other 1	 	578	 	395	 	543	 	435	 	414	 	
Total Consumer	 	7,475	 	7,167	 	10,086	 	9,221	 	10,855	 	
Total Accruing Loans and Leases Past Due 90 Days or More	 	$	7,475	 	$	7,168	 	$	10,088	 	$	9,222	 	$	10,855	 	
Restructured Loans on Accrual Status and Not Past Due 90 Days or More	 	$	31,426	 	$	31,124	 	$	29,539	 	$	33,703	 	$	33,140	 	
Total Loans and Leases	 	$	5,782,304	 	$	5,671,483	 	$	5,598,932	 	$	5,538,304	 	$	5,348,472	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	 	0.64%	 	0.69%	 	0.68%	 	0.68%	 	0.64%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate	 	0.70%	 	0.73%	 	0.74%	 	0.74%	 	0.71%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate	 	0.46%	 	0.51%	 	0.53%	 	0.56%	 	0.52%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate	 	0.84%	 	0.87%	 	0.87%	 	0.85%	 	0.82%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases and Foreclosed Real Estate	 	0.83%	 	0.86%	 	0.92%	 	0.90%	 	0.91%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Quarter to Quarter Changes in Non-Performing Assets Balance at Beginning of Quarter	 	$	41,494	 	$	41,406	 	$	40,790	 	$	37,770	 	$	34,156	 	
Additions	 	2,878	 	7,574	 	5,334	 	8,653	 	8,552	 	
Reductions	 	 	 	 	 	 	 	 	 	 	 	
Payments	 	(2,408)	 	(2,942)	 	(2,524)	 	(1,173)	 	(3,237)	 	
Return to Accrual Status	 	(1,083)	 	(2,085)	 	(535)	 	(2,421)	 	(401)	 	
Sales of Foreclosed Real Estate	 	(424)	 	(2,247)	 	(1,049)	 	(1,320)	 	(157)	 	
Charge-offs/Write-downs	 	(173)	 	(212)	 	(610)	 	(719)	 	(1,143)	 	
Total Reductions	 	(4,088)	 	(7,486)	 	(4,718)	 	(5,633)	 	(4,938)	 	
Balance at End of Quarter	 	$	40,284	 	$	41,494	 	$	41,406	 	$	40,790	 	$	37,770	 	

1Comprised of other revolving credit, installment, and lease financing.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	 	 	
Reserve for Credit Losses	 	Table 12 	 	
 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Nine Months Ended	 	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	2012	 	2011	 	 	
Balance at Beginning of Period	 	$	137,862	 	$	141,025	 	$	150,395	 	$	144,025	 	$	152,777	 	 	
Loans and Leases Charged-Off	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(519	)	(1,078	)	(4,215	)	(3,028	)	(7,379	)	 	
Construction	 	-	 	-	 	-	 	(330	)	-	 	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	(628	)	(1,369	)	(1,558	)	(3,577	)	(5,286	)	 	
Home Equity	 	(1,061	)	(1,657	)	(2,528	)	(5,159	)	(7,139	)	 	
Automobile	 	(472	)	(438	)	(715	)	(1,436	)	(2,541	)	 	
Other1	 	(2,354	)	(1,394	)	(1,755	)	(5,199	)	(4,807	)	 	
Total Loans and Leases Charged-Off	 	(5,034	)	(5,936	)	(10,771	)	(18,729	)	(27,152	)	 	
Recoveries on Loans and Leases Previously Charged-Off	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	578	 	524	 	994	 	3,035	 	1,965	 	 	
Commercial Mortgage	 	14	 	10	 	530	 	48	 	530	 	 	
Construction	 	3	 	-	 	-	 	3	 	-	 	 	
Lease Financing	 	83	 	11	 	3,405	 	166	 	3,499	 	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	739	 	376	 	740	 	1,781	 	1,621	 	 	
Home Equity	 	258	 	165	 	137	 	993	 	1,226	 	 	
Automobile	 	433	 	482	 	650	 	1,453	 	1,951	 	 	
Other1	 	1,454	 	577	 	569	 	2,636	 	1,941	 	 	
Total Recoveries on Loans and Leases Previously Charged-Off	 	3,562	 	2,145	 	7,025	 	10,115	 	12,733	 	 	
Net Loans and Leases Charged-Off	 	(1,472	)	(3,791	)	(3,746	)	(8,614	)	(14,419	)	 	
Provision for Credit Losses	 	-	 	628	 	2,180	 	979	 	10,471	 	 	
Balance at End of Period 2	 	$	136,390	 	$	137,862	 	$	148,829	 	$	136,390	 	$	148,829	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Components	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	130,971	 	$	132,443	 	$	143,410	 	$	130,971	 	$	143,410	 	 	
Reserve for Unfunded Commitments	 	5,419	 	5,419	 	5,419	 	5,419	 	5,419	 	 	
Total Reserve for Credit Losses	 	$	136,390	 	$	137,862	 	$	148,829	 	$	136,390	 	$	148,829	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases Outstanding	 	$	5,716,421	 	$	5,641,588	 	$	5,340,406	 	$	5,640,733	 	$	5,326,209	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Net Loans and Leases Charged-Off to	 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases Outstanding (annualized)	 	0.10%	 	0.27%	 	0.28%	 	0.20%	 	0.36%	 	 	
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding	 	2.27%	 	2.34%	 	2.68%	 	2.27%	 	2.68%	 	 	

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 13a	 	
 
 	 	Retail	 	Commercial	Investment	Treasury	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	Services	and Other	Total	 	
Three Months Ended September 30, 2012	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	38,530	 	 	$	30,811	 	 	$	3,607	 	 	$	20,684	 	 	$	93,632	 	 	
Provision for Credit Losses	 	1,677	 	 	(180	)	 	(24	)	 	(1,473	)	 	-	 	 	
Net Interest Income After Provision for Credit Losses	 	36,853	 	 	30,991	 	 	3,631	 	 	22,157	 	 	93,632	 	 	
Noninterest Income	 	24,918	 	 	8,687	 	 	15,350	 	 	3,419	 	 	52,374	 	 	
Noninterest Expense	 	(45,454	)	 	(22,120	)	 	(14,519	)	 	(2,785	)	 	(84,878	)	 	
Income Before Provision for Income Taxes	 	16,317	 	 	17,558	 	 	4,462	 	 	22,791	 	 	61,128	 	 	
Provision for Income Taxes	 	(6,038	)	 	(6,051	)	 	(1,651	)	 	(6,156	)	 	(19,896	)	 	
Net Income	 	10,279	 	 	11,507	 	 	2,811	 	 	16,635	 	 	41,232	 	 	
Total Assets as of September 30, 2012	 	$	3,242,817	 	 	$	2,397,307	 	 	$	321,273	 	 	$	7,421,028	 	 	$	13,382,425	 	 	

Three Months Ended September 30, 2011 1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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	 	(45,026	)	 	(22,626	)	 	(14,615	)	 	(1,688	)	 	(83,955	)	 	
Income Before Provision for Income Taxes	 	18,508	 	 	21,670	 	 	4,849	 	 	16,467	 	 	61,494	 	 	
Provision for Income Taxes	 	(6,848	)	 	(7,468	)	 	(1,794	)	 	(2,078	)	 	(18,188	)	 	
Net Income	 	11,660	 	 	14,202	 	 	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	 	 	

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 13b	 	
 
 	 	Retail	 	Commercial	Investment	Treasury	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	Services	and Other	Total	 	
Nine Months Ended September 30, 2012	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	117,179	 	 	$	93,069	 	 	$	10,738	 	 	$	65,975	 	 	$	286,961	 	 	
Provision for Credit Losses	 	9,041	 	 	(691	)	 	265	 	 	(7,636	)	 	979	 	 	
Net Interest Income After Provision for Credit Losses	 	108,138	 	 	93,760	 	 	10,473	 	 	73,611	 	 	285,982	 	 	
Noninterest Income	 	65,443	 	 	28,816	 	 	44,482	 	 	8,563	 	 	147,304	 	 	
Noninterest Expense	 	(133,758	)	 	(67,247	)	 	(43,524	)	 	(6,303	)	 	(250,832	)	 	
Income Before Provision for Income Taxes	 	39,823	 	 	55,329	 	 	11,431	 	 	75,871	 	 	182,454	 	 	
Provision for Income Taxes	 	(14,735	)	 	(15,103	)	 	(4,229	)	 	(22,598	)	 	(56,665	)	 	
Net Income	 	25,088	 	 	40,226	 	 	7,202	 	 	53,273	 	 	125,789	 	 	
Total Assets as of September 30, 2012	 	$	3,242,817	 	 	$	2,397,307	 	 	$	321,273	 	 	$	7,421,028	 	 	$	13,382,425	 	 	

Nine Months Ended September 30, 2011 1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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	 	(141,114	)	 	(71,363	)	 	(45,062	)	 	(6,272	)	 	(263,811	)	 	
Income Before Provision for Income Taxes	 	41,923	 	 	61,211	 	 	12,482	 	 	58,312	 	 	173,928	 	 	
Provision for Income Taxes	 	(15,512	)	 	(21,215	)	 	(4,618	)	 	(11,769	)	 	(53,114	)	 	
Net Income	 	26,411	 	 	39,996	 	 	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	 	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Selected Quarterly Financial Data	Table 14 	 	
 
 	 	Three Months Ended	 	
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands, except per share amounts)	 	2012	 	2012	 	2012	 	2011	 	2011	 	
Quarterly Operating Results	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	64,668	 	 	$	63,910	 	 	$	64,691	 	 	$	64,760	 	 	$	65,344	 	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	15,922	 	 	16,988	 	 	17,713	 	 	19,107	 	 	23,097	 	 	
Held-to-Maturity	 	23,232	 	 	25,054	 	 	26,413	 	 	23,608	 	 	20,344	 	 	
Deposits	 	3	 	 	1	 	 	2	 	 	2	 	 	6	 	 	
Funds Sold	 	105	 	 	119	 	 	129	 	 	120	 	 	160	 	 	
Other	 	283	 	 	281	 	 	280	 	 	280	 	 	279	 	 	
Total Interest Income	 	104,213	 	 	106,353	 	 	109,228	 	 	107,877	 	 	109,230	 	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	2,931	 	 	3,219	 	 	3,473	 	 	3,736	 	 	4,561	 	 	
Securities Sold Under Agreements to Repurchase	 	7,185	 	 	7,250	 	 	7,304	 	 	7,392	 	 	7,400	 	 	
Funds Purchased	 	7	 	 	5	 	 	5	 	 	5	 	 	4	 	 	
Long-Term Debt	 	458	 	 	498	 	 	498	 	 	498	 	 	499	 	 	
Total Interest Expense	 	10,581	 	 	10,972	 	 	11,280	 	 	11,631	 	 	12,464	 	 	
Net Interest Income	 	93,632	 	 	95,381	 	 	97,948	 	 	96,246	 	 	96,766	 	 	
Provision for Credit Losses	 	-    	 	 	628	 	 	351	 	 	2,219	 	 	2,180	 	 	
Net Interest Income After Provision for Credit Losses	 	93,632	 	 	94,753	 	 	97,597	 	 	94,027	 	 	94,586	 	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	11,050	 	 	11,195	 	 	10,918	 	 	11,025	 	 	10,788	 	 	
Mortgage Banking	 	11,745	 	 	7,581	 	 	5,050	 	 	3,401	 	 	5,480	 	 	
Service Charges on Deposit Accounts	 	9,346	 	 	9,225	 	 	9,591	 	 	9,606	 	 	9,820	 	 	
Fees, Exchange, and Other Service Charges	 	11,907	 	 	12,326	 	 	12,399	 	 	12,401	 	 	16,219	 	 	
Investment Securities Gains (Losses), Net	 	13	 	 	-    	 	 	(90	)	 	282	 	 	-    	 	 	
Insurance	 	2,326	 	 	2,399	 	 	2,278	 	 	2,312	 	 	2,664	 	 	
Other	 	5,987	 	 	4,122	 	 	7,936	 	 	4,380	 	 	5,892	 	 	
Total Noninterest Income	 	52,374	 	 	46,848	 	 	48,082	 	 	43,407	 	 	50,863	 	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	47,231	 	 	44,037	 	 	47,024	 	 	44,927	 	 	44,307	 	 	
Net Occupancy	 	10,524	 	 	10,058	 	 	10,516	 	 	11,253	 	 	11,113	 	 	
Net Equipment	 	4,523	 	 	4,669	 	 	5,826	 	 	4,748	 	 	4,662	 	 	
Professional Fees	 	2,494	 	 	2,386	 	 	2,132	 	 	1,926	 	 	2,245	 	 	
FDIC Insurance	 	1,822	 	 	2,088	 	 	2,071	 	 	2,027	 	 	2,065	 	 	
Other	 	18,284	 	 	17,509	 	 	17,638	 	 	19,501	 	 	19,563	 	 	
Total Noninterest Expense	 	84,878	 	 	80,747	 	 	85,207	 	 	84,382	 	 	83,955	 	 	
Income Before Provision for Income Taxes	 	61,128	 	 	60,854	 	 	60,472	 	 	53,052	 	 	61,494	 	 	
Provision for Income Taxes	 	19,896	 	 	20,107	 	 	16,662	 	 	13,823	 	 	18,188	 	 	
Net Income	 	$	41,232	 	 	$	40,747	 	 	$	43,810	 	 	$	39,229	 	 	$	43,306	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic Earnings Per Share	 	0.92	 	 	0.90	 	 	0.96	 	 	0.85	 	 	0.93	 	 	
Diluted Earnings Per Share	 	0.92	 	 	0.90	 	 	0.95	 	 	0.85	 	 	0.92	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	$	5,782,304	 	 	$	5,671,483	 	 	$	5,598,932	 	 	$	5,538,304	 	 	$	5,348,472	 	 	
Total Assets	 	13,382,425	 	 	13,915,626	 	 	13,759,409	 	 	13,846,391	 	 	13,304,758	 	 	
Total Deposits	 	11,220,547	 	 	11,547,993	 	 	10,621,170	 	 	10,592,623	 	 	10,009,013	 	 	
Total Shareholders’ Equity	 	1,024,562	 	 	1,003,825	 	 	995,897	 	 	1,002,667	 	 	1,017,775	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.22	 	%	1.19	 	%	1.29	 	%	1.17	 	%	1.31	 	%	
Return on Average Shareholders’ Equity	 	16.02	 	 	16.19	 	 	17.26	 	 	15.23	 	 	16.80	 	 	
Efficiency Ratio1	 	58.13	 	 	56.77	 	 	58.35	 	 	60.42	 	 	56.87	 	 	
Net Interest Margin2	 	2.98	 	 	2.98	 	 	3.06	 	 	3.04	 	 	3.09	 	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Hawaii Economic Trends	Table 15 	
 
 	 	Eight Months Ended	 	Year Ended	 	 	
($ in millions; jobs in thousands)	 	August 31, 2012	 	December 31, 2011	 	 	December 31, 2010	 	 	
Hawaii Economic Trends1	 	 	 	 	 	 	 	 	 	 	 	 	 	
State General Fund Revenues	 	$	3,513.6	 	13.1	%	 	$	4,662.5	8.1	%	$	4,314.1	7.4	 	%	
General Excise and Use Tax Revenue	 	$	1,915.1	 	9.5	 	 	$	2,588.5	8.8	 	$	2,379.9	3.6	 	 	
Jobs	 	596.8	 	1.2	 	 	592.1	0.9	 	586.8	(0.8	)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	September 30,	 	June 30,	 	December 31,	 	
(spot rates)	 	2012	 	2012	 	2011	 	2010	 	2009	 	
Unemployment1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Statewide, seasonally adjusted	 	5.7	 	%	6.4	 	%	6.2	%	6.3	 	%	6.9	 	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Oahu	 	5.0	 	 	6.4	 	 	5.4	 	4.8	 	 	5.4	 	 	
Island of Hawaii	 	7.9	 	 	10.1	 	 	8.9	 	8.6	 	 	9.5	 	 	
Maui	 	6.0	 	 	7.5	 	 	7.1	 	7.4	 	 	8.8	 	 	
Kauai	 	6.8	 	 	8.7	 	 	7.8	 	7.8	 	 	8.7	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	September 30,	 	June 30,	 	December 31,	 	
(percentage change, except months of inventory)	 	2012	 	2012	 	2011	 	2010	 	2009	 	
Housing Trends (Single Family Oahu) 2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Median Home Price	 	8.8	 	%	8.7	 	%	(3.0	)	%	3.1	 	%	(7.3	)	%	
Home Sales Volume (units)	 	3.5	 	%	0.4	 	%	(2.7	)	%	13.4	 	%	(1.8	)	%	
Months of Inventory	 	3.3	 	 	3.9	 	 	4.8	 	 	6.0	 	 	6.8	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Monthly Visitor Arrivals,	 	Percentage Change	 	 	
(in thousands)	 	Seasonally Adjusted	 	from Previous Month	 	 	
Tourism3	 	 	 	 	 	 	
 	 	 	 	 	 	 	
July 31, 2012	 	634.9	 	(1.9	)	%	
June 30, 2012	 	647.2	 	(0.8	)	 	
May 31, 2012	 	652.4	 	2.7	 	 	
April 30, 2012	 	635.0	 	(4.8	)	 	
March 31, 2012	 	666.7	 	4.9	 	 	
February 29, 2012	 	635.5	 	(2.4	)	 	
January 31, 2012	 	651.1	 	3.1	 	 	
December 31, 2011	 	631.3	 	2.6	 	 	
November 30, 2011	 	615.2	 	1.7	 	 	
October 31, 2011	 	604.8	 	(1.2	)	 	
September 30, 2011	 	612.0	 	3.8	 	 	
August 31, 2011	 	589.8	 	0.9	 	 	
July 31, 2011	 	584.3	 	1.3	 	 	
June 30, 2011	 	577.0	 	(0.1	)	 	
May 31, 2011	 	577.8	 	(0.7	)	 	
April 30, 2011	 	581.9	 	(0.9	)	 	
March 31, 2011	 	587.4	 	(3.0	)	 	
February 28, 2011	 	605.5	 	(0.3	)	 	
January 31, 2011	 	607.5	 	2.5	 	 	
December 31, 2010	 	592.6	 	-  	 	 	
November 30, 2010	 	592.9	 	(1.5	)	 	
October 31, 2010	 	601.7	 	2.5	 	 	
September 30, 2010	 	587.3	 	1.0	 	 	
August 31, 2010	 	581.7	 	(2.5	)	 	

 
1 Source:  Hawaii Department of Business, Economic Development & Tourism.
2 Source:  Honolulu Board of REALTORS.
3 Source:  University of Hawaii Economic Research Organization.
  Note:  Certain prior period seasonally adjusted information has been revised.