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 26, 2009
 
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) (808) 694-8822
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

 

 
Item 2.02.              Results of Operations and Financial Conditions.
On October 26, 2009, Bank of Hawaii Corporation announced its results of operations for the quarter ending September 30, 2009.  The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
 
Item 9.01.              Financial Statements and Exhibits
 
(d)                                Exhibits
 
Exhibit No.	 	 	
 	 	 	
99.1	 	October 26, 2009 Press Release	
 
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 26, 2009	BANK OF HAWAII CORPORATION	

 	By:	/s/ Mark A. Rossi	
 	 	Mark A. Rossi	
 	 	Vice Chairman and Corporate Secretary	
 
2

Exhibit 99.1
 
 	News Release	NYSE: BOH	
 
 	 	Media Inquiries
Stafford Kiguchi
Telephone: 808-694-8580
Mobile: 808-265-6367
E-mail: Stafford.Kiguchi@boh.com
 
Investor/Analyst Inquiries
Cindy Wyrick
Telephone: 808-694-8430
E-mail: Cindy.Wyrick@boh.com	
 
Bank of Hawaii Corporation Third Quarter 2009 Financial Results
 
·   Diluted Earnings Per Share $0.76
·   Net Income for the Quarter $36.5 Million
·   Board of Directors Declares Dividend of $0.45 Per Share
 
FOR IMMEDIATE RELEASE
 
HONOLULU, HI (October 26, 2009) — Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.76 for the third quarter of 2009, up from $0.65 in the previous quarter, and down from $0.99 in the same quarter last year.  Net income for the third quarter of 2009 was $36.5 million compared to net income of $31.0 million in the second quarter of 2009, and $47.4 million in the third quarter of 2008.  Results for the third quarter of 2008 included a net credit of $8.9 million related to the Company’s resolution of Sale In/Lease Out (“SILO”) leases with the Internal Revenue Service.  The return on average assets for the third quarter of 2009 was 1.21 percent, compared to 1.06 percent during the previous quarter, and 1.82 percent during the same quarter last year.  The return on average equity for the third quarter of 2009 was 16.44 percent compared to 14.49 percent for the second quarter of 2009, and 24.17 percent for the third quarter of 2008.
 
“Bank of Hawaii Corporation had good results for the third quarter of 2009 despite continuing economic weakness,” said Allan R. Landon, Chairman, and CEO.  “We were able to increase our liquidity, capital, and reserves, improve profitability, and our Board affirmed our dividend.  Asset quality indicators were mixed this quarter as we continue to address weakened credits.  Bank of Hawaii has a strong balance sheet and remains safe, balanced, and well prepared for the future.”
 
For the nine months, ended September 30, 2009, net income was $103.5 million compared to net income of $152.9 million for the same period last year.  Diluted earnings per share were $2.16 for the nine-month period in 2009, down from $3.17 for the same period in 2008.  The year-to-date return on average assets was 1.19 percent compared to 1.95 percent for the same period in 2008.  The year-to-date return on average equity was 16.24 percent, down from 26.26 percent for the nine months ended September 30, 2008 partially due to the growth in capital.
 
130 Merchant Street • PO Box 2900 • Honolulu HI 96846-6000 • Fax 808-537-8440 • Website www.boh.com
 
- more -

 
Bank of Hawaii Corporation Third Quarter 2009 Financial Results
 
Results for the nine months ended September 30, 2009 included gains of $13.7 million from the disposition of leased equipment and the sale of the Company’s retail insurance brokerage business.  These gains were offset by increases in the allowance for loan and lease losses, expenses for legal contingencies, an industry-wide FDIC special assessment, impairment of a leveraged lease residual value, and early debt retirement.  Results for the same period in 2008 included $31.0 million from the mandatory redemption of Visa shares, a reversal of Visa legal costs, and a lessee’s early buy-out of an aircraft lease.  Partially offsetting these gains were expenses for employee incentives, legal contingencies, a call premium on Capital Securities, increases in the allowance for loan and lease losses, and contributions to the Bank of Hawaii Charitable Foundation.  Details of these items are included in Table 2.
 
Financial Highlights
 
Net interest income, on a taxable equivalent basis, for the third quarter of 2009 was $109.2 million, up $6.0 million from net interest income of $103.2 million in the second quarter of 2009, and up $5.4 million from net interest income of $103.8 million in the third quarter of 2008.  Net interest income in the third quarter of 2009 included a charge of $1.0 million related to impairment of the residual value of an aircraft leveraged lease investment.  The increase in net interest income compared with the second quarter of 2009 was largely due to a higher level of earning assets and a higher net interest margin.  Net interest income in the third quarter of 2008 included a $4.0 million reduction of income related to settlement of the SILO leases.  For the nine months ended September 30, 2009, net interest income, on a taxable-equivalent basis, was $309.7 million compared to $313.6 million for the same period in 2008.  Analyses of the changes in net interest income are included in Tables 7a, 7b and 7c.
 
The net interest margin was 3.85 percent for the third quarter of 2009, a 12 basis point increase from 3.73 percent in the second quarter of 2009, and a 48 basis point decrease from 4.33 percent in the third quarter of 2008.   For the nine months ended September 30, 2009, the net interest margin was 3.78 percent compared to 4.30 percent for the same nine months in 2008.  The decrease in the net interest margin was largely the result of lower interest rates and the Company’s strategy to increase liquidity and reduce risk.
 
Results for the third quarter of 2009 included a provision for credit losses of $27.5 million compared with $28.7 million in the second quarter of 2009 and $20.4 million in the third quarter of 2008.  The provision for credit losses exceeded net charge-offs by $5.2 million in the third quarter of 2009.  The provision for credit losses exceeded net charge-offs by $3.0 million in the second quarter of 2009 and exceeded net charge-offs by $13.0 million in the third quarter of 2008.
 
Noninterest income was $56.8 million for the third quarter of 2009, a decrease of $3.0 million compared to $59.8 million in the second quarter of 2009, and essentially flat with noninterest income of $57.0 million in the third quarter of 2008.  Noninterest income in the second quarter of 2009 included a gain of $2.8 million related to the disposition of leased equipment and $0.9 million due to the previously mentioned sale of the retail insurance brokerage business.
 
Noninterest expense was $84.0 million in the third quarter of 2009, down $5.6 million from $89.6 million in the previous quarter, and down $2.8 million from $86.8 million in the same quarter last year.  Noninterest expense in the second quarter of 2009 included $5.7 million related to an industry-wide FDIC special assessment.  Noninterest expense in the third quarter of 2008 included a $2.0 million broad based employee incentive accrual.  An analysis of salary and benefit expenses is included in Table 8.
 
2

 
Bank of Hawaii Corporation Third Quarter 2009 Financial Results
 
The efficiency ratio for the third quarter of 2009 was 50.69 percent, compared with an efficiency ratio of 55.07 percent in the previous quarter and 54.05 percent in the same quarter last year.  The efficiency ratio for the nine-month period ended September 30, 2009 was 52.74 percent compared with 51.12 percent for the same period last year.
 
The effective tax rate for the third quarter of 2009 was 32.71 percent, compared to 30.18 percent in the previous quarter, and 11.24 percent during the third quarter last year.  Taxes in the third quarter of 2009 included a $0.4 million credit related to the previously mentioned leveraged lease residual value impairment, and taxes in the second quarter of 2009 were reduced by a $1.6 million tax benefit resulting from accounting for the termination of a leveraged lease.  The lower effective tax rate in the third quarter of 2008 was due to a credit of $12.9 million related to the previously mentioned SILO lease settlement.
 
The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury & Other.  Results are determined based on the Company’s internal financial management reporting process and organizational structure.  Selected financial information for the business segments is included in Tables 12a and 12b.
 
Asset Quality
 
Credit quality during the third quarter of 2009 continued to reflect the weak national and local economies.  Non-accrual loans and leases were $48.3 million at the end of September 30, 2009, up from $38.6 million at June 30, 2009, and up from $5.6 million at September 30, 2008.  As a percentage of total loans and leases, non-accrual loans and leases were 0.81 percent at September 30, 2009.  The increase in non-accrual loans was largely in two commercial construction loans.
 
Accruing loans and leases past due 90 days or more increased $2.7 million during the third quarter of 2009 due to the addition of a $3.0 million commercial construction loan on the island of Hawaii, which offset a small decline in delinquent consumer loans.  More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 10.
 
Net charge-offs during the third quarter of 2009 were $22.3 million, down from $25.7 million in the second quarter of 2009, and up from $7.4 million in the third quarter last year.  Net charge-offs for the third quarter of 2009 included $5.8 million in partial charge-offs related to three non-accrual commercial construction loans and $4.0 million in partial charge-offs related to the sale of three syndicated credits.
 
The allowance for loan and lease losses was $142.7 million at September 30, 2009, up from $137.4 million at June 30, 2009 and $115.5 million at September 30, 2008.  The ratio of the allowance for loan and lease losses to total loans and leases increased to 2.41 percent at September 30, 2009.  The reserve for unfunded commitments at September 30, 2009 was unchanged at $5.4 million.  Details of charge-offs, recoveries and the components of the total reserve for credit losses are summarized in Table 11.
 
Other Financial Highlights
 
Total assets were $12.21 billion at September 30, 2009, up slightly from total assets of $12.19 billion at June 30, 2009, and up $1.87 billion from total assets of $10.34 billion at September 30, 2008.  Average total assets were $11.99 billion during the third quarter of 2009, up $235 million from average assets of $11.75 billion during the previous quarter, and up $1.65 billion
 
3

 
Bank of Hawaii Corporation Third Quarter 2009 Financial Results
 
from average assets of $10.34 billion during the third quarter last year.  The growth in assets was primarily in investment securities available for sale and is the result of strong deposit generation.
 
The Company continued to decrease loans during the quarter due to reduced loan demand along with planned credit exits and payoffs to reduce overall portfolio risk.  Also in the third quarter of 2009, the Company sold its position in three syndicated loans totaling $19.5 million.  Loan and lease portfolio balances, including elements of higher risk, are summarized in Table 9.
 
Total deposits were $9.25 billion at September 30, 2009, up $230 million from $9.02 billion at June 30, 2009, and up $1.59 billion from $7.66 billion at September 30, 2008.  The increase in deposits was widespread among deposit categories except time deposits.  Average total deposits were $9.13 billion in the third quarter of 2009, down $91 million from average deposits of $9.22 billion during the previous quarter, and up $1.36 billion from $7.77 billion during the third quarter last year.  The Company slowed deposit growth during the third quarter due to the limited lending opportunities.  Deposit balances are summarized in Tables 6a, 6b, and 9.
 
Consistent with the Company’s strategy to build capital levels, no shares were repurchased during the third quarter of 2009.  Remaining buyback authority under the share repurchase program was $85.4 million at September 30, 2009.  Total shareholders’ equity increased to $902.8 million at September 30, 2009, compared to $845.9 million at June 30, 2009, and $780.0 million at September 30, 2008.
 
The ratio of tangible common equity to risk weighted assets was 14.56 percent at September 30, 2009, up from 13.02 percent at June 30, 2009, and up from 11.04 percent at September 30, 2008.  At September 30, 2009, the Tier 1 leverage ratio was 6.67 percent compared to 6.66 percent at June 30, 2009, and 7.27 percent at September 30, 2008.  The decrease in the Tier 1 leverage ratio compared with the same quarter last year was due to the significant growth in investment securities, primarily Treasury and Ginnie Mae securities.
 
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, 2009 to shareholders of record at the close of business on November 30, 2009.
 
On October 9, 2009, the Company signed an agreement to sell certain assets of the Company’s wholesale insurance business, Triad Insurance Agency, Inc. (“Triad”), to a third party.  The agreement precludes the Company from competing directly or indirectly with Triad for a period of five years after the closing date of the sale.  In connection with this sale, several employees of Triad were hired by the third party.  The sale of Triad closed on October 22, 2009 and resulted in a pre-tax gain of approximately $1.5 million.  Net income of Triad for the year ended December 31, 2008 was approximately $4.5 million.
 
Hawaii Economy
 
Hawaii’s economy during the third quarter of 2009 continued to reflect weakness primarily the result of slow national economic conditions and lower visitor activity in the state.  Visitor arrivals appear to be stabilizing.  However, visitor spending continues to decline as a result of discounting.  State general fund revenues have declined 14.4 percent during the first eight months of 2009 primarily due to a decline in general excise and use taxes.  Total jobs have contracted 3.1 percent from the beginning of the year.  The statewide unemployment rate improved slightly to 7.2 percent on a seasonally adjusted basis at the end of September compared with 7.3 percent at the
 
4

 
Bank of Hawaii Corporation Third Quarter 2009 Financial Results
 
end of June.  Residential real estate prices in Hawaii continue to hold their value better than many U. S. mainland markets and months of inventory declined to 5.3 months at the end of September.  More information on Hawaii economic trends is presented in Table 14.
 
Conference Call Information
 
The Company will review its third quarter 2009 financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time).  The conference call will be accessible via teleconference and the Investor Relations link of Bank of Hawaii Corporation’s web site, www.boh.com.  The conference call number for participants in the United States is 800-510-0146.  International participants should call 617-614-3449.  No pass code is required.  A replay of the conference call will be available for one week beginning Monday, October 26, 2009 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the pass code number 79433710 when prompted.  A replay will also be available on 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, 2008, which was filed with the U.S. Securities and Exchange Commission.  We have not committed to update forward-looking statements to reflect later events or circumstances.
 
Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers, and governments in Hawaii, American Samoa, and the West Pacific.  The Company’s principal subsidiary, Bank of Hawaii, was founded in 1897 and is the largest independent financial institution in Hawaii.  For more information about Bank of Hawaii Corporation, see the Company’s web site, www.boh.com.
 
# # # #
 
5

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Financial Highlights	 	Table 1	
 
 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands, except per share amounts)	 	2009	 	2009	 	2008	 	2009	 	2008	 	
For the Period:	 	 	 	 	 	 	 	 	 	 	 	
Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	108,887	 	$	102,851	 	$	103,575	 	$	308,800	 	$	312,923	 	
Provision for Credit Losses	 	27,500	 	28,690	 	20,358	 	81,077	 	41,957	 	
Total Noninterest Income	 	56,800	 	59,832	 	56,986	 	186,997	 	203,650	 	
Total Noninterest Expense	 	83,987	 	89,584	 	86,790	 	261,504	 	264,084	 	
Net Income	 	36,471	 	31,006	 	47,409	 	103,517	 	152,906	 	
Basic Earnings Per Share	 	0.76	 	0.65	 	1.00	 	2.17	 	3.20	 	
Diluted Earnings Per Share	 	0.76	 	0.65	 	0.99	 	2.16	 	3.17	 	
Dividends Declared Per Share	 	0.45	 	0.45	 	0.44	 	1.35	 	1.32	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.21	%	1.06	%	1.82	%	1.19	%	1.95	%	
Return on Average Shareholders’ Equity	 	16.44	 	14.49	 	24.17	 	16.24	 	26.26	 	
Efficiency Ratio (1)	 	50.69	 	55.07	 	54.05	 	52.74	 	51.12	 	
Operating Leverage (2)	 	11.77	 	(8.04	)	(12.02	)	(7.21	)	8.65	 	
Net Interest Margin (3)	 	3.85	 	3.73	 	4.33	 	3.78	 	4.30	 	
Dividend Payout Ratio (4)	 	59.21	 	69.23	 	44.00	 	62.21	 	41.25	 	
Average Shareholders’ Equity to Average Assets	 	7.34	 	7.30	 	7.55	 	7.34	 	7.41	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Balances	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases	 	$	6,034,956	 	$	6,258,403	 	$	6,512,453	 	$	6,245,117	 	$	6,543,871	 	
Average Assets	 	11,988,995	 	11,753,580	 	10,339,490	 	11,616,237	 	10,495,367	 	
Average Deposits	 	9,131,064	 	9,222,130	 	7,772,535	 	9,036,247	 	7,893,972	 	
Average Shareholders’ Equity	 	880,003	 	858,139	 	780,334	 	852,347	 	777,650	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Market Price Per Share of Common Stock	 	 	 	 	 	 	 	 	 	 	 	
Closing	 	$	41.54	 	$	35.83	 	$	53.45	 	$	41.54	 	$	53.45	 	
High	 	42.92	 	41.42	 	70.00	 	45.24	 	70.00	 	
Low	 	33.65	 	31.35	 	37.46	 	25.33	 	37.46	 	
 
 	 	 	 	September 30,	 	June 30,	 	December 31,	 	September 30,	 	
 	 	 	 	2009	 	2009	 	2008	 	2008	 	
As of Period End:	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	 	 	$	5,931,358	 	$	6,149,911	 	$	6,530,233	 	$	6,539,458	 	
Total Assets	 	 	 	12,208,025	 	12,194,695	 	10,763,475	 	10,335,047	 	
Total Deposits	 	 	 	9,250,100	 	9,019,661	 	8,292,098	 	7,658,484	 	
Long-Term Debt	 	 	 	91,424	 	91,432	 	203,285	 	204,616	 	
Total Shareholders’ Equity	 	 	 	902,799	 	845,885	 	790,704	 	780,020	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Asset Quality	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	 	 	$	142,658	 	$	137,416	 	$	123,498	 	$	115,498	 	
Non-Performing Assets (5)	 	 	 	48,536	 	39,054	 	14,949	 	5,927	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Financial Ratios	 	 	 	 	 	 	 	 	 	 	 	
Allowance to Loans and Leases Outstanding	 	 	 	2.41	%	2.23	%	1.89	%	1.77	%	
Tier 1 Capital Ratio	 	 	 	13.43	 	12.56	 	11.24	 	11.14	 	
Total Capital Ratio	 	 	 	14.70	 	13.82	 	12.49	 	12.40	 	
Leverage Ratio	 	 	 	6.67	 	6.66	 	7.30	 	7.27	 	
Tangible Common Equity to Total Assets (6)	 	 	 	7.11	 	6.65	 	7.01	 	7.20	 	
Tangible Common Equity to Risk-Weighted Assets (6)	 	 	 	14.56	 	13.02	 	11.28	 	11.04	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Non-Financial Data	 	 	 	 	 	 	 	 	 	 	 	
Full-Time Equivalent Employees	 	 	 	2,474	 	2,533	 	2,581	 	2,573	 	
Branches and Offices	 	 	 	85	 	85	 	85	 	84	 	
ATMs	 	 	 	485	 	486	 	462	 	467	 	

(1)	 	Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).	
(2)	 	Operating leverage is defined as the percentage change in income before the provision for credit losses and the provision for income taxes. Measures are presented on a linked quarter basis.	
(3)	 	Net interest margin is defined as net interest income, on a taxable equivalent basis, as a percentage of average earning assets.	
(4)	 	Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.	
(5)	 	Excluded from non-performing assets are non-accrual loans held for sale of $7.7 million and $5.2 million as of September 30, 2009 and June 30, 2009, respectively.	
(6)	 	Tangible common equity, a non-GAAP financial measure, is defined by the Company as shareholders’ equity minus goodwill and intangible assets. Intangible assets are included as a component of other assets in the Consolidated Statements of Condition.	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Net Significant Income (Expense) Items	 	Table 2	
 
 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands)	 	2009	 	2009	 	2008	 	2009	 	2008	 	
Leveraged Lease Residual Value Impairment	 	$	(968	)	$	—	 	$	—	 	$	(968	)	$	—	 	
SILO Leveraged Lease	 	—	 	—	 	(3,981	)	—	 	(3,981	)	
Gain on Disposal of Leased Equipment	 	—	 	2,782	 	—	 	12,818	 	11,588	 	
Gain on Sale of Insurance Subsidiary	 	—	 	852	 	—	 	852	 	—	 	
Gain on Mandatory Redemption of Visa Shares	 	—	 	—	 	—	 	—	 	13,737	 	
Increase in Allowance for Loan and Lease Losses	 	(5,242	)	(3,000	)	(13,000	)	(19,160	)	(24,500	)	
FDIC Special Assessment	 	—	 	(5,744	)	—	 	(5,744	)	—	 	
Market Premium on Repurchased Long-Term Privately Placed Debt	 	—	 	—	 	—	 	(875	)	—	 	
Cash Grants for the Purchase of Company Stock	 	—	 	—	 	—	 	—	 	(4,640	)	
Employee Incentive Awards	 	—	 	—	 	(2,000	)	—	 	(6,386	)	
Legal Contingencies	 	—	 	—	 	—	 	(1,500	)	(3,016	)	
Bank of Hawaii Charitable Foundation and Other Contributions	 	—	 	—	 	—	 	—	 	(2,250	)	
Call Premium on Capital Securities	 	—	 	—	 	—	 	—	 	(991	)	
Separation Expense	 	—	 	—	 	—	 	—	 	(615	)	
Reversal of Visa Legal Costs	 	—	 	—	 	—	 	—	 	5,649	 	
Significant Income (Expense) Items Before the Benefit for Income Taxes	 	(6,210	)	(5,110	)	(18,981	)	(14,577	)	(15,405	)	
Income Tax Impact Related to Lease Transactions	 	(373	)	(286	)	(12,920	)	3,213	 	(14,331	)	
Income Tax Impact	 	(1,835	)	(2,762	)	(5,250	)	(9,249	)	(8,095	)	
Net Significant Income (Expense) Items	 	$	(4,002	)	$	(2,062	)	$	(811	)	$	(8,541	)	$	7,021	 	

 
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)	 	2009	 	2009	 	2008 (1)	 	2009	 	2008 (1)	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	79,530	 	$	83,342	 	$	92,744	 	$	249,464	 	$	295,116	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	—	 	—	 	1,174	 	594	 	3,543	 	
Available-for-Sale	 	46,419	 	38,155	 	35,152	 	116,875	 	104,724	 	
Held-to-Maturity	 	2,179	 	2,369	 	2,870	 	7,115	 	9,142	 	
Deposits	 	3	 	5	 	33	 	18	 	432	 	
Funds Sold	 	320	 	526	 	141	 	1,423	 	1,553	 	
Other	 	277	 	276	 	490	 	829	 	1,405	 	
Total Interest Income	 	128,728	 	124,673	 	132,604	 	376,318	 	415,915	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	12,235	 	14,481	 	17,736	 	43,741	 	65,439	 	
Securities Sold Under Agreements to Repurchase	 	6,394	 	6,477	 	7,675	 	19,523	 	25,780	 	
Funds Purchased	 	5	 	5	 	507	 	15	 	1,410	 	
Short-Term Borrowings	 	—	 	—	 	13	 	—	 	59	 	
Long-Term Debt	 	1,207	 	859	 	3,098	 	4,239	 	10,304	 	
Total Interest Expense	 	19,841	 	21,822	 	29,029	 	67,518	 	102,992	 	
Net Interest Income	 	108,887	 	102,851	 	103,575	 	308,800	 	312,923	 	
Provision for Credit Losses	 	27,500	 	28,690	 	20,358	 	81,077	 	41,957	 	
Net Interest Income After Provision for Credit Losses	 	81,387	 	74,161	 	83,217	 	227,723	 	270,966	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	10,915	 	11,881	 	14,193	 	34,428	 	44,739	 	
Mortgage Banking	 	4,656	 	5,443	 	621	 	18,777	 	7,656	 	
Service Charges on Deposit Accounts	 	14,014	 	12,910	 	13,045	 	40,310	 	37,539	 	
Fees, Exchange, and Other Service Charges	 	14,801	 	15,410	 	15,604	 	45,187	 	47,098	 	
Investment Securities Gains (Losses), Net	 	(5	)	12	 	159	 	63	 	446	 	
Insurance	 	7,304	 	4,744	 	5,902	 	17,689	 	18,622	 	
Other	 	5,115	 	9,432	 	7,462	 	30,543	 	47,550	 	
Total Noninterest Income	 	56,800	 	59,832	 	56,986	 	186,997	 	203,650	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	46,387	 	44,180	 	46,764	 	137,595	 	148,221	 	
Net Occupancy	 	10,350	 	10,008	 	11,795	 	30,686	 	33,581	 	
Net Equipment	 	4,502	 	4,502	 	4,775	 	13,320	 	13,570	 	
Professional Fees	 	2,642	 	4,005	 	3,270	 	9,196	 	8,471	 	
FDIC Insurance	 	3,290	 	8,987	 	321	 	14,091	 	817	 	
Other	 	16,816	 	17,902	 	19,865	 	56,616	 	59,424	 	
Total Noninterest Expense	 	83,987	 	89,584	 	86,790	 	261,504	 	264,084	 	
Income Before Provision for Income Taxes	 	54,200	 	44,409	 	53,413	 	153,216	 	210,532	 	
Provision for Income Taxes	 	17,729	 	13,403	 	6,004	 	49,699	 	57,626	 	
Net Income	 	$	36,471	 	$	31,006	 	$	47,409	 	$	103,517	 	$	152,906	 	
Basic Earnings Per Share	 	$	0.76	 	$	0.65	 	$	1.00	 	$	2.17	 	$	3.20	 	
Diluted Earnings Per Share	 	$	0.76	 	$	0.65	 	$	0.99	 	$	2.16	 	$	3.17	 	
Dividends Declared Per Share	 	$	0.45	 	$	0.45	 	$	0.44	 	$	1.35	 	$	1.32	 	
Basic Weighted Average Shares	 	47,745,375	 	47,682,604	 	47,518,078	 	47,665,146	 	47,738,245	 	
Diluted Weighted Average Shares	 	48,045,873	 	47,948,531	 	48,057,965	 	47,930,271	 	48,295,901	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	
Consolidated Statements of Condition	Table 4	
 
 	 	September 30,	 	June 30,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2009	 	2009	 	2008	 	2008 (1)	 	
Assets	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	 5,863	 	$	 4,537	 	$	 5,094	 	$	 13,845	 	
Funds Sold	 	401,200	 	656,000	 	405,789	 	—	 	
Investment Securities	 	 	 	 	 	 	 	 	 	
Trading	 	—	 	—	 	91,500	 	90,993	 	
Available-for-Sale	 	4,827,588	 	4,292,911	 	2,519,239	 	2,572,111	 	
Held-to-Maturity (Fair Value of $201,118; $214,484; $242,175; and $245,720)	 	194,444	 	209,807	 	239,635	 	249,083	 	
Loans Held for Sale	 	19,346	 	40,994	 	21,540	 	14,903	 	
Loans and Leases	 	5,931,358	 	6,149,911	 	6,530,233	 	6,539,458	 	
Allowance for Loan and Lease Losses	 	(142,658	)	(137,416	)	(123,498	)	(115,498	)	
Net Loans and Leases	 	5,788,700	 	6,012,495	 	6,406,735	 	6,423,960	 	
Total Earning Assets	 	11,237,141	 	11,216,744	 	9,689,532	 	9,364,895	 	
Cash and Noninterest-Bearing Deposits	 	291,480	 	294,022	 	385,599	 	285,762	 	
Premises and Equipment	 	110,173	 	112,681	 	116,120	 	118,333	 	
Customers’ Acceptances	 	950	 	2,084	 	1,308	 	1,250	 	
Accrued Interest Receivable	 	43,047	 	43,042	 	39,905	 	41,061	 	
Foreclosed Real Estate	 	201	 	438	 	428	 	293	 	
Mortgage Servicing Rights	 	25,437	 	24,731	 	21,057	 	27,707	 	
Goodwill	 	34,959	 	34,959	 	34,959	 	34,959	 	
Other Assets	 	464,637	 	465,994	 	474,567	 	460,787	 	
Total Assets	 	$	 12,208,025	 	$	 12,194,695	 	$	 10,763,475	 	$	 10,335,047	 	
 	 	 	 	 	 	 	 	 	 	
Liabilities	 	 	 	 	 	 	 	 	 	
Deposits	 	 	 	 	 	 	 	 	 	
Noninterest-Bearing Demand	 	$	 2,055,872	 	$	 2,109,270	 	$	 1,754,724	 	$	 1,592,251	 	
Interest-Bearing Demand	 	1,588,705	 	1,589,300	 	1,854,611	 	1,708,183	 	
Savings	 	4,365,257	 	4,054,039	 	3,104,863	 	2,780,798	 	
Time	 	1,240,266	 	1,267,052	 	1,577,900	 	1,577,252	 	
Total Deposits	 	9,250,100	 	9,019,661	 	8,292,098	 	7,658,484	 	
Funds Purchased	 	8,670	 	8,670	 	15,734	 	189,700	 	
Short-Term Borrowings	 	7,200	 	10,000	 	4,900	 	10,621	 	
Securities Sold Under Agreements to Repurchase	 	1,524,755	 	1,799,794	 	1,028,835	 	1,109,431	 	
Long-Term Debt (includes $119,275 and $120,598 carried at fair value as of December 31, 2008 and September 30, 2008, respectively)	 	91,424	 	91,432	 	203,285	 	204,616	 	
Banker’s Acceptances	 	950	 	2,084	 	1,308	 	1,250	 	
Retirement Benefits Payable	 	43,918	 	54,286	 	54,776	 	22,438	 	
Accrued Interest Payable	 	9,740	 	7,765	 	13,837	 	12,702	 	
Taxes Payable and Deferred Taxes	 	254,375	 	226,936	 	229,699	 	240,795	 	
Other Liabilities	 	114,094	 	128,182	 	128,299	 	104,990	 	
Total Liabilities	 	11,305,226	 	11,348,810	 	9,972,771	 	9,555,027	 	
 	 	 	 	 	 	 	 	 	 	
Shareholders’ Equity	 	 	 	 	 	 	 	 	 	
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: September 30, 2009 - 57,028,554 / 47,937,543; June 30, 2009 - 57,028,940 / 47,881,083; December 31, 2008 - 57,019,887 / 47,753,371; and September 30, 2008 - 57,022,797 / 47,707,629)	 	569	 	569	 	568	 	568	 	
Capital Surplus	 	492,346	 	491,784	 	492,515	 	491,419	 	
Accumulated Other Comprehensive Income (Loss)	 	37,307	 	(1,870	)	(28,888	)	(18,643	)	
Retained Earnings	 	825,709	 	811,121	 	787,924	 	770,373	 	
Treasury Stock, at Cost (Shares: September 30, 2009 - 9,091,011; June 30, 2009 - 9,147,857; December 31, 2008 - 9,266,516; and September 30, 2008 - 9,315,168)	 	(453,132	)	(455,719	)	(461,415	)	(463,697	)	
Total Shareholders’ Equity	 	902,799	 	845,885	 	790,704	 	780,020	 	
Total Liabilities and Shareholders’ Equity	 	$	12,208,025	 	$	12,194,695	 	$	10,763,475	 	$	10,335,047	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	
Consolidated Statements of Shareholders’ Equity	Table 5	
 
(dollars in thousands)	 	Total	 	Common
Stock	 	Capital
Surplus	 	Accum.
Other
Comprehensive
(Loss)
Income	 	Retained
Earnings	 	Treasury
Stock	 	Comprehensive
Income	 	
Balance as of December 31, 2008	 	$	 790,704	 	$	 568	 	$	492,515	 	$	 (28,888	)	$	787,924	 	$	(461,415	)	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	103,517	 	—	 	—	 	—	 	103,517	 	—	 	$	103,517	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	 	65,121	 	—	 	—	 	65,121	 	—	 	—	 	65,121	 	
Amortization of Net Loss Related to Pension and Postretirement Benefit Plans	 	1,074	 	—	 	—	 	1,074	 	—	 	—	 	1,074	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	169,712	 	
Share-Based Compensation	 	1,700	 	—	 	1,700	 	—	 	—	 	—	 	 	 	
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (209,847 shares)	 	6,202	 	1	 	(1,869	)	—	 	(1,101	)	9,171	 	 	 	
Common Stock Repurchased (25,675 shares)	 	(888	)	—	 	—	 	—	 	—	 	(888	)	 	 	
Cash Dividends Paid	 	(64,631	)	—	 	—	 	—	 	(64,631	)	—	 	 	 	
Balance as of September 30, 2009	 	$	 902,799	 	$	 569	 	$	492,346	 	$	 37,307	 	$	825,709	 	$	(453,132	)	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance as of December 31, 2007	 	$	 750,255	 	$	 567	 	$	484,790	 	$	 (5,091	)	$	688,638	 	$	(418,649	)	 	 	
Cumulative-Effect Adjustment of a Change in Accounting Principle, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adoption of Accounting Principles Related to the Fair Value Option	 	(2,736	)	—	 	—	 	—	 	(2,736	)	—	 	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	152,906	 	—	 	—	 	—	 	152,906	 	—	 	$	152,906	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	 	(13,699	)	—	 	—	 	(13,699	)	—	 	—	 	(13,699	)	
Amortization of Net Loss Related to Pension and Postretirement Benefit Plans	 	147	 	—	 	—	 	147	 	—	 	—	 	147	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	139,354	 	
Share-Based Compensation	 	4,480	 	—	 	4,480	 	—	 	—	 	—	 	 	 	
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (378,382 shares)	 	13,728	 	1	 	2,149	 	—	 	(5,075	)	16,653	 	 	 	
Common Stock Repurchased (1,260,398 shares)	 	(61,701	)	—	 	—	 	—	 	—	 	(61,701	)	 	 	
Cash Dividends Paid	 	(63,360	)	—	 	—	 	—	 	(63,360	)	—	 	 	 	
Balance as of September 30, 2008	 	$	 780,020	 	$	 568	 	$	491,419	 	$	 (18,643	)	$	770,373	 	$	(463,697	)	 	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	
Average Balances and Interest Rates - Taxable Equivalent Basis	Table 6a	
 
 	 	Three Months Ended
September 30, 2009	 	Three Months Ended
June 30, 2009	 	Three Months Ended
September 30, 2008 (1)	 	
 	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	
(dollars in millions)	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	5.1	 	$	—	 	0.28	%	$	5.2	 	$	—	 	0.36	%	$	6.4	 	$	—	 	2.06	%	
Funds Sold	 	489.7	 	0.3	 	0.26	 	833.2	 	0.5	 	0.25	 	28.4	 	0.1	 	1.96	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	—	 	—	 	—	 	—	 	—	 	—	 	92.6	 	1.2	 	5.07	 	
Available-for-Sale	 	4,491.2	 	46.7	 	4.16	 	3,662.1	 	38.5	 	4.21	 	2,601.2	 	35.4	 	5.44	 	
Held-to-Maturity	 	202.0	 	2.2	 	4.31	 	219.9	 	2.4	 	4.31	 	255.4	 	2.9	 	4.50	 	
Loans Held for Sale	 	25.2	 	0.2	 	2.95	 	24.1	 	0.2	 	4.21	 	6.6	 	0.1	 	6.34	 	
Loans and Leases (2)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	884.4	 	9.0	 	4.06	 	984.1	 	9.9	 	4.02	 	1,049.7	 	13.8	 	5.23	 	
Commercial Mortgage	 	787.0	 	10.2	 	5.14	 	763.8	 	9.9	 	5.22	 	695.3	 	10.5	 	6.04	 	
Construction	 	140.9	 	1.4	 	3.81	 	144.5	 	1.5	 	4.03	 	161.4	 	2.3	 	5.67	 	
Commercial Lease Financing	 	464.0	 	3.0	 	2.56	 	450.2	 	3.5	 	3.13	 	472.9	 	0.2	 	0.15	 	
Residential Mortgage	 	2,273.8	 	33.0	 	5.81	 	2,359.0	 	34.6	 	5.88	 	2,480.7	 	37.6	 	6.05	 	
Home Equity	 	963.3	 	12.3	 	5.08	 	999.3	 	12.6	 	5.07	 	994.6	 	14.4	 	5.77	 	
Automobile	 	304.5	 	6.1	 	7.88	 	325.5	 	6.5	 	7.96	 	403.6	 	8.2	 	8.09	 	
Other (3)	 	217.1	 	4.3	 	7.95	 	232.0	 	4.6	 	7.89	 	254.3	 	5.6	 	8.80	 	
Total Loans and Leases	 	6,035.0	 	79.3	 	5.24	 	6,258.4	 	83.1	 	5.32	 	6,512.5	 	92.6	 	5.67	 	
Other	 	79.7	 	0.3	 	1.39	 	79.7	 	0.3	 	1.39	 	79.6	 	0.5	 	2.46	 	
Total Earning Assets(4)	 	11,327.9	 	129.0	 	4.54	 	11,082.6	 	125.0	 	4.52	 	9,582.7	 	132.8	 	5.53	 	
Cash and Noninterest-Bearing Deposits	 	203.5	 	 	 	 	 	203.9	 	 	 	 	 	274.3	 	 	 	 	 	
Other Assets	 	457.6	 	 	 	 	 	467.1	 	 	 	 	 	482.5	 	 	 	 	 	
Total Assets	 	$	11,989.0	 	 	 	 	 	$	11,753.6	 	 	 	 	 	$	10,339.5	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,625.6	 	0.2	 	0.06	 	$	1,907.7	 	0.3	 	0.07	 	$	1,793.0	 	1.5	 	0.32	 	
Savings	 	4,190.2	 	6.6	 	0.63	 	4,036.9	 	7.8	 	0.77	 	2,790.3	 	6.3	 	0.90	 	
Time	 	1,264.7	 	5.4	 	1.69	 	1,330.6	 	6.4	 	1.92	 	1,594.8	 	9.9	 	2.48	 	
Total Interest-Bearing Deposits	 	7,080.5	 	12.2	 	0.69	 	7,275.2	 	14.5	 	0.80	 	6,178.1	 	17.7	 	1.14	 	
Short-Term Borrowings	 	18.1	 	—	 	0.12	 	16.4	 	—	 	0.12	 	116.7	 	0.5	 	1.74	 	
Securities Sold Under Agreements to Repurchase	 	1,464.3	 	6.4	 	1.71	 	1,168.2	 	6.5	 	2.20	 	1,077.4	 	7.7	 	2.80	 	
Long-Term Debt	 	91.4	 	1.2	 	5.26	 	71.1	 	0.8	 	4.84	 	205.1	 	3.1	 	6.04	 	
Total Interest-Bearing Liabilities	 	8,654.3	 	19.8	 	0.91	 	8,530.9	 	21.8	 	1.02	 	7,577.3	 	29.0	 	1.52	 	
Net Interest Income	 	 	 	$	109.2	 	 	 	 	 	$	103.2	 	 	 	 	 	$	103.8	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.63	%	 	 	 	 	3.50	%	 	 	 	 	4.01	%	
Net Interest Margin	 	 	 	 	 	3.85	%	 	 	 	 	3.73	%	 	 	 	 	4.33	%	
Noninterest-Bearing Demand Deposits	 	2,050.5	 	 	 	 	 	1,946.9	 	 	 	 	 	1,594.4	 	 	 	 	 	
Other Liabilities	 	404.2	 	 	 	 	 	417.7	 	 	 	 	 	387.5	 	 	 	 	 	
Shareholders’ Equity	 	880.0	 	 	 	 	 	858.1	 	 	 	 	 	780.3	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	11,989.0	 	 	 	 	 	$	11,753.6	 	 	 	 	 	$	10,339.5	 	 	 	 	 	

(1)         Certain prior period information has been reclassified to conform to current presentation.
(2)         Non-performing loans and leases are included in the respective average loan and lease balances.  Income, if any, on such loans and leases is recognized on a cash basis.
(3)         Comprised of other consumer revolving credit, installment, and consumer lease financing.
(4)         Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $329,000, $331,000, and $234,000 for the three months ended September 30, 2009, June 30, 2009, and September 30, 2008, respectively.

 
Bank of Hawaii Corporation and Subsidiaries	 	
Average Balances and Interest Rates - Taxable Equivalent Basis	Table 6b	
 
 	 	Nine Months Ended
September 30, 2009	 	Nine Months Ended
September 30, 2008 (1)	 	
 	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	
(dollars in millions)	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	5.0	 	$	—	 	0.49	%	$	22.2	 	$	0.4	 	2.56	%	
Funds Sold	 	743.7	 	1.4	 	0.25	 	82.6	 	1.6	 	2.47	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	16.1	 	0.6	 	4.92	 	95.3	 	3.5	 	4.96	 	
Available-for-Sale	 	3,600.8	 	117.8	 	4.36	 	2,627.5	 	105.5	 	5.35	 	
Held-to-Maturity	 	218.9	 	7.1	 	4.33	 	270.1	 	9.1	 	4.51	 	
Loans Held for Sale	 	23.7	 	0.7	 	3.82	 	8.8	 	0.4	 	5.79	 	
Loans and Leases (2)	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	966.1	 	29.4	 	4.06	 	1,058.5	 	44.6	 	5.64	 	
Commercial Mortgage	 	760.7	 	29.7	 	5.23	 	669.2	 	31.1	 	6.21	 	
Construction	 	146.5	 	4.4	 	4.02	 	179.4	 	8.2	 	6.09	 	
Commercial Lease Financing	 	459.0	 	10.1	 	2.95	 	473.8	 	8.3	 	2.33	 	
Residential Mortgage	 	2,356.1	 	104.0	 	5.89	 	2,490.5	 	113.7	 	6.09	 	
Home Equity	 	996.9	 	38.0	 	5.09	 	990.6	 	45.1	 	6.07	 	
Automobile	 	328.6	 	19.5	 	7.93	 	421.7	 	25.7	 	8.14	 	
Other (3)	 	231.3	 	13.7	 	7.90	 	260.2	 	18.0	 	9.22	 	
Total Loans and Leases	 	6,245.2	 	248.8	 	5.32	 	6,543.9	 	294.7	 	6.01	 	
Other	 	79.7	 	0.8	 	1.39	 	79.6	 	1.4	 	2.35	 	
Total Earning Assets(4)	 	10,933.1	 	377.2	 	4.60	 	9,730.0	 	416.6	 	5.71	 	
Cash and Noninterest-Bearing Deposits	 	216.8	 	 	 	 	 	280.4	 	 	 	 	 	
Other Assets	 	466.3	 	 	 	 	 	485.0	 	 	 	 	 	
Total Assets	 	$	11,616.2	 	 	 	 	 	$	10,495.4	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,806.4	 	0.9	 	0.06	 	$	1,635.6	 	4.9	 	0.40	 	
Savings	 	3,922.4	 	22.6	 	0.77	 	2,802.2	 	22.1	 	1.06	 	
Time	 	1,364.5	 	20.3	 	1.98	 	1,662.6	 	38.4	 	3.09	 	
Total Interest-Bearing Deposits	 	7,093.3	 	43.8	 	0.82	 	6,100.4	 	65.4	 	1.43	 	
Short-Term Borrowings	 	17.7	 	—	 	0.11	 	86.0	 	1.5	 	2.25	 	
Securities Sold Under Agreements to Repurchase	 	1,191.2	 	19.5	 	2.16	 	1,100.5	 	25.8	 	3.10	 	
Long-Term Debt	 	103.4	 	4.2	 	5.47	 	223.0	 	10.3	 	6.16	 	
Total Interest-Bearing Liabilities	 	8,405.6	 	67.5	 	1.07	 	7,509.9	 	103.0	 	1.83	 	
Net Interest Income	 	 	 	$	309.7	 	 	 	 	 	$	313.6	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.53	%	 	 	 	 	3.88	%	
Net Interest Margin	 	 	 	 	 	3.78	%	 	 	 	 	4.30	%	
Noninterest-Bearing Demand Deposits	 	1,943.0	 	 	 	 	 	1,793.5	 	 	 	 	 	
Other Liabilities	 	415.3	 	 	 	 	 	414.3	 	 	 	 	 	
Shareholders’ Equity	 	852.3	 	 	 	 	 	777.7	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	11,616.2	 	 	 	 	 	$	10,495.4	 	 	 	 	 	

(1)         Certain prior period information has been reclassified to conform to current presentation.
(2)         Non-performing loans and leases are included in the respective average loan and lease balances.  Income, if any, on such loans and leases is recognized on a cash basis.
(3)         Comprised of other consumer revolving credit, installment, and consumer lease financing.
(4)         Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $886,000 and $711,000 for the nine months ended September 30, 2009 and 2008, respectively.

 
Bank of Hawaii Corporation and Subsidiaries	 	
Analysis of Change in Net Interest Income - Taxable Equivalent Basis	Table 7a	
 
 	 	Three Months Ended September 30, 2009	 	
 	 	Compared to June 30, 2009	 	
(dollars in millions)	 	Volume (1)	 	Rate (1)	 	Time (1)	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	 	 	
Funds Sold	 	$	(0.2	)	$	—	 	$	—	 	$	(0.2	)	
Investment Securities	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	8.4	 	(0.5	)	0.3	 	8.2	 	
Held-to-Maturity	 	(0.2	)	—	 	—	 	(0.2	)	
Loans and Leases	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(1.1	)	0.1	 	0.1	 	(0.9	)	
Commercial Mortgage	 	0.3	 	(0.1	)	0.1	 	0.3	 	
Construction	 	—	 	(0.1	)	—	 	(0.1	)	
Commercial Lease Financing	 	0.1	 	(0.6	)	—	 	(0.5	)	
Residential Mortgage	 	(1.5	)	(0.5	)	0.4	 	(1.6	)	
Home Equity	 	(0.3	)	—	 	—	 	(0.3	)	
Automobile	 	(0.4	)	(0.1	)	0.1	 	(0.4	)	
Other (2)	 	(0.3	)	—	 	—	 	(0.3	)	
Total Loans and Leases	 	(3.2	)	(1.3	)	0.7	 	(3.8	)	
Total Change in Interest Income	 	4.8	 	(1.8	)	1.0	 	4.0	 	
 	 	 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	
Demand	 	(0.1	)	—	 	—	 	(0.1	)	
Savings	 	0.3	 	(1.5	)	—	 	(1.2	)	
Time	 	(0.3	)	(0.8	)	0.1	 	(1.0	)	
Total Interest-Bearing Deposits	 	(0.1	)	(2.3	)	0.1	 	(2.3	)	
Securities Sold Under Agreements to Repurchase	 	1.5	 	(1.7	)	0.1	 	(0.1	)	
Long-Term Debt	 	0.3	 	0.1	 	—	 	0.4	 	
Total Change in Interest Expense	 	1.7	 	(3.9	)	0.2	 	(2.0	)	
 	 	 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	3.1	 	$	2.1	 	$	0.8	 	$	6.0	 	

(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, 2009	 	
 	 	Compared to September 30, 2008	 	
(dollars in millions)	 	Volume (1)	 	Rate (1)	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	0.4	 	$	(0.2	)	$	0.2	 	
Investment Securities	 	 	 	 	 	 	 	
Trading	 	(0.6	)	(0.6	)	(1.2	)	
Available-for-Sale	 	21.1	 	(9.8	)	11.3	 	
Held-to-Maturity	 	(0.6	)	(0.1	)	(0.7	)	
Loans Held for Sale	 	0.2	 	(0.1	)	0.1	 	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	(2.0	)	(2.8	)	(4.8	)	
Commercial Mortgage	 	1.3	 	(1.6	)	(0.3	)	
Construction	 	(0.2	)	(0.7	)	(0.9	)	
Commercial Lease Financing	 	—	 	2.8	 	2.8	 	
Residential Mortgage	 	(3.1	)	(1.5	)	(4.6	)	
Home Equity	 	(0.4	)	(1.7	)	(2.1	)	
Automobile	 	(1.9	)	(0.2	)	(2.1	)	
Other (2)	 	(0.8	)	(0.5	)	(1.3	)	
Total Loans and Leases	 	(7.1	)	(6.2	)	(13.3	)	
Other	 	—	 	(0.2	)	(0.2	)	
Total Change in Interest Income	 	13.4	 	(17.2	)	(3.8	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	(0.2	)	(1.1	)	(1.3	)	
Savings	 	2.6	 	(2.3	)	0.3	 	
Time	 	(1.8	)	(2.7	)	(4.5	)	
Total Interest-Bearing Deposits	 	0.6	 	(6.1	)	(5.5	)	
Short-Term Borrowings	 	(0.2	)	(0.3	)	(0.5	)	
Securities Sold Under Agreements to Repurchase	 	2.2	 	(3.5	)	(1.3	)	
Long-Term Debt	 	(1.5	)	(0.4	)	(1.9	)	
Total Change in Interest Expense	 	1.1	 	(10.3	)	(9.2	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	12.3	 	$	(6.9	)	$	5.4	 	

(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, 2009	 	
 	 	Compared to September 30, 2008	 	
(dollars in millions)	 	Volume (1)	 	Rate (1)	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	(0.2	)	$	(0.2	)	$	(0.4	)	
Funds Sold	 	2.3	 	(2.5	)	(0.2	)	
Investment Securities	 	 	 	 	 	 	 	
Trading	 	(2.9	)	—	 	(2.9	)	
Available-for-Sale	 	34.2	 	(21.9	)	12.3	 	
Held-to-Maturity	 	(1.7	)	(0.3	)	(2.0	)	
Loans Held for Sale	 	0.5	 	(0.2	)	0.3	 	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	(3.5	)	(11.7	)	(15.2	)	
Commercial Mortgage	 	3.9	 	(5.3	)	(1.4	)	
Construction	 	(1.3	)	(2.5	)	(3.8	)	
Commercial Lease Financing	 	(0.3	)	2.1	 	1.8	 	
Residential Mortgage	 	(6.1	)	(3.6	)	(9.7	)	
Home Equity	 	0.3	 	(7.4	)	(7.1	)	
Automobile	 	(5.6	)	(0.6	)	(6.2	)	
Other (2)	 	(1.9	)	(2.4	)	(4.3	)	
Total Loans and Leases	 	(14.5	)	(31.4	)	(45.9	)	
Other	 	—	 	(0.6	)	(0.6	)	
Total Change in Interest Income	 	17.7	 	(57.1	)	(39.4	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	0.5	 	(4.5	)	(4.0	)	
Savings	 	7.5	 	(7.0	)	0.5	 	
Time	 	(6.1	)	(12.0	)	(18.1	)	
Total Interest-Bearing Deposits	 	1.9	 	(23.5	)	(21.6	)	
Short-Term Borrowings	 	(0.7	)	(0.8	)	(1.5	)	
Securities Sold Under Agreements to Repurchase	 	2.0	 	(8.3	)	(6.3	)	
Long-Term Debt	 	(5.0	)	(1.1	)	(6.1	)	
Total Change in Interest Expense	 	(1.8	)	(33.7	)	(35.5	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	19.5	 	$	(23.4	)	$	(3.9	)	

(1)         The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume 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)	 	2009	 	2009	 	2008	 	2009	 	2008	 	
Salaries	 	$	29,988	 	$	30,732	 	$	30,190	 	$	90,565	 	$	89,112	 	
Incentive Compensation	 	5,524	 	3,407	 	5,969	 	12,223	 	16,358	 	
Share-Based Compensation and Cash Grants for the Purchase of Company Stock	 	595	 	604	 	1,180	 	1,986	 	8,592	 	
Commission Expense	 	1,523	 	1,750	 	1,653	 	5,528	 	5,518	 	
Retirement and Other Benefits	 	3,962	 	3,804	 	3,097	 	12,385	 	11,822	 	
Payroll Taxes	 	2,176	 	2,344	 	2,162	 	8,020	 	8,067	 	
Medical, Dental, and Life Insurance	 	2,619	 	1,236	 	2,452	 	6,519	 	7,421	 	
Separation Expense	 	—	 	303	 	61	 	369	 	1,331	 	
Total Salaries and Benefits	 	$	46,387	 	$	44,180	 	$	46,764	 	$	137,595	 	$	148,221	 	

 
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)	 	2009	 	2009	 	2009	 	2008	 	2008 (1)	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	845,056	 	$	932,444	 	$	1,000,640	 	$	1,053,781	 	$	1,077,314	 	
Commercial Mortgage	 	777,498	 	788,226	 	726,193	 	740,779	 	708,961	 	
Construction	 	137,414	 	140,455	 	153,754	 	153,952	 	153,364	 	
Lease Financing	 	458,696	 	468,030	 	454,822	 	468,140	 	467,279	 	
Total Commercial	 	2,218,664	 	2,329,155	 	2,335,409	 	2,416,652	 	2,406,918	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	2,246,729	 	2,309,971	 	2,402,061	 	2,461,824	 	2,478,925	 	
Home Equity	 	952,076	 	977,632	 	1,016,381	 	1,033,221	 	1,004,437	 	
Automobile	 	299,657	 	309,877	 	343,642	 	369,789	 	395,015	 	
Other (2)	 	214,232	 	223,276	 	241,233	 	248,747	 	254,163	 	
Total Consumer	 	3,712,694	 	3,820,756	 	4,003,317	 	4,113,581	 	4,132,540	 	
Total Loans and Leases	 	$	5,931,358	 	$	6,149,911	 	$	6,338,726	 	$	6,530,233	 	$	6,539,458	 	
 
Higher Risk Loans Outstanding
 
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2009	 	2009	 	2009	 	2008	 	2008	 	
Residential Home Building (3)	 	$	38,592	 	$	22,850	 	$	8,536	 	$	5,001	 	$	6,944	 	
Residential Land Loans (4)	 	43,128	 	47,871	 	50,663	 	54,483	 	58,401	 	
Home Equity Loans (5)	 	24,339	 	21,832	 	19,431	 	14,917	 	14,028	 	
Air Transportation (6)	 	60,996	 	62,148	 	76,303	 	79,692	 	79,758	 	

(1)         Certain prior period information has been reclassified to conform to current presentation.
(2)         Comprised of other revolving credit, installment, and lease financing.
(3)         Residential home building loans are collateralized by residential developments and comprised 62% of total commercial construction as of September 30, 2009. Higher risk exposures represent 45% of total residential home building and include $16,462 outside of Oahu and $10,282 in non-performing assets as of September 30, 2009.
(4)         Included in residential mortgage, residential land loans are collateralized by land and includes $36,613 outside of Oahu as of September 30, 2009.
(5)         Current FICO of 600 or less and original LTV above 70%, all originated after 2004.
(6)         Equity in nine leases, eight of which are leveraged, all to passenger carriers, one of which is based outside the United States as of September 30, 2009.
 
Deposits
 
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2009	 	2009	 	2009	 	2008	 	2008	 	
Consumer	 	$	4,776,626	 	$	4,747,612	 	$	4,702,494	 	$	4,593,248	 	$	4,460,965	 	
Commercial	 	4,002,068	 	3,828,521	 	3,645,842	 	3,221,668	 	2,835,699	 	
Public and Other	 	471,406	 	443,528	 	864,455	 	477,182	 	361,820	 	
Total Deposits	 	$	9,250,100	 	$	9,019,661	 	$	9,212,791	 	$	8,292,098	 	$	7,658,484	 	

 
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)	 	2009	 	2009	 	2009	 	2008	 	2008	 	
Non-Performing Assets(1)	 	 	 	 	 	 	 	 	 	 	 	
Non-Accrual Loans and Leases	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	9,924	 	$	10,511	 	$	21,839	 	$	3,869	 	$	574	 	
Commercial Mortgage	 	1,193	 	1,219	 	—	 	—	 	—	 	
Construction	 	15,534	 	6,548	 	5,001	 	5,001	 	—	 	
Lease Financing	 	690	 	956	 	910	 	133	 	149	 	
Total Commercial	 	27,341	 	19,234	 	27,750	 	9,003	 	723	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	16,718	 	16,265	 	9,230	 	3,904	 	3,749	 	
Home Equity	 	3,726	 	2,567	 	1,620	 	1,614	 	1,162	 	
Other (2)	 	550	 	550	 	1,383	 	—	 	—	 	
Total Consumer	 	20,994	 	19,382	 	12,233	 	5,518	 	4,911	 	
Total Non-Accrual Loans and Leases	 	48,335	 	38,616	 	39,983	 	14,521	 	5,634	 	
Foreclosed Real Estate	 	201	 	438	 	346	 	428	 	293	 	
Total Non-Performing Assets	 	$	48,536	 	$	39,054	 	$	40,329	 	$	14,949	 	$	5,927	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Accruing Loans and Leases Past Due 90 Days or More	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	137	 	$	13	 	$	—	 	$	6,785	 	$	—	 	
Construction	 	3,005	 	—	 	—	 	—	 	—	 	
Lease Financing	 	—	 	—	 	257	 	268	 	—	 	
Total Commercial	 	3,142	 	13	 	257	 	7,053	 	—	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	5,951	 	4,657	 	4,794	 	4,192	 	3,455	 	
Home Equity	 	1,698	 	2,879	 	1,720	 	1,077	 	296	 	
Automobile	 	749	 	769	 	776	 	743	 	758	 	
Other (2)	 	739	 	1,270	 	1,100	 	1,134	 	926	 	
Total Consumer	 	9,137	 	9,575	 	8,390	 	7,146	 	5,435	 	
Total Accruing Loans and Leases Past Due 90 Days or More	 	$	12,279	 	$	9,588	 	$	8,647	 	$	14,199	 	$	5,435	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Restructured Loans Not Included in Non-Accrual Loans and Accruing Loans Past Due 90 Days or More	 	$	7,578	 	$	2,307	 	$	—	 	$	—	 	$	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Loans and Leases	 	$	5,931,358	 	$	6,149,911	 	$	6,338,726	 	$	6,530,233	 	$	6,539,458	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	 	0.81	%	0.63	%	0.63	%	0.22	%	0.09	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate	 	0.82	%	0.63	%	0.64	%	0.23	%	0.09	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases	 	1.23	%	0.83	%	1.19	%	0.37	%	0.03	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Foreclosed Real Estate	 	0.57	%	0.52	%	0.31	%	0.14	%	0.13	%	
 	 	 	 	 	 	 	 	 	 	 	 	
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	 	1.03	%	0.79	%	0.77	%	0.45	%	0.17	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Quarter to Quarter Changes in Non-Performing Assets (1)	 	 	 	 	 	 	 	 	 	 	 	
Balance at Beginning of Quarter	 	$	39,054	 	$	40,329	 	$	14,949	 	$	5,927	 	$	6,680	 	
Additions	 	22,856	 	22,459	 	29,164	 	15,464	 	1,355	 	
Reductions	 	 	 	 	 	 	 	 	 	 	 	
Payments	 	(6,899	)	(15,593	)	(874	)	(2,440	)	(955	)	
Return to Accrual Status	 	(3,373	)	(230	)	(768	)	(1,468	)	(756	)	
Sales of Foreclosed Real Estate	 	(237	)	—	 	(82	)	—	 	—	 	
Charge-offs/Write-downs	 	(2,865	)	(7,911	)	(2,060	)	(2,534	)	(397	)	
Total Reductions	 	(13,374	)	(23,734	)	(3,784	)	(6,442	)	(2,108	)	
Balance at End of Quarter	 	$	48,536	 	$	39,054	 	$	40,329	 	$	14,949	 	$	5,927	 	

(1)         Excluded from non-performing assets are non-accrual loans held for sale of $7.7 million and $5.2 million as of September 30, 2009 and June 30, 2009, respectively.
(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)	 	2009	 	2009 (1)	 	2008	 	2009	 	2008	 	
Balance at Beginning of Period	 	$	142,835	 	$	139,835	 	$	107,667	 	$	128,667	 	$	96,167	 	
Loans and Leases Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(4,769	)	(12,260	)	(1,783	)	(23,493	)	(4,568	)	
Commercial Mortgage	 	(2,092	)	—	 	—	 	(2,092	)	—	 	
Construction	 	(5,845	)	—	 	—	 	(5,845	)	—	 	
Lease Financing	 	(120	)	(4,473	)	(27	)	(4,613	)	(303	)	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	(2,430	)	(1,814	)	(398	)	(5,071	)	(531	)	
Home Equity	 	(3,614	)	(3,303	)	(519	)	(9,233	)	(1,798	)	
Automobile	 	(2,602	)	(2,110	)	(2,858	)	(7,694	)	(7,960	)	
Other (2)	 	(3,032	)	(3,643	)	(3,444	)	(10,252	)	(8,202	)	
Total Loans and Leases Charged-Off	 	(24,504	)	(27,603	)	(9,029	)	(68,293	)	(23,362	)	
Recoveries on Loans and Leases Previously Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	252	 	228	 	220	 	1,022	 	1,407	 	
Lease Financing	 	49	 	30	 	2	 	81	 	7	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	448	 	126	 	67	 	719	 	162	 	
Home Equity	 	67	 	76	 	36	 	239	 	83	 	
Automobile	 	849	 	735	 	699	 	2,311	 	2,195	 	
Other (2)	 	581	 	718	 	647	 	2,004	 	2,051	 	
Total Recoveries on Loans and Leases Previously Charged-Off	 	2,246	 	1,913	 	1,671	 	6,376	 	5,905	 	
Net Loans and Leases Charged-Off	 	(22,258	)	(25,690	)	(7,358	)	(61,917	)	(17,457	)	
Provision for Credit Losses	 	27,500	 	28,690	 	20,358	 	81,077	 	41,957	 	
Provision for Unfunded Commitments	 	—	 	—	 	—	 	250	 	—	 	
Balance at End of Period(3)	 	$	148,077	 	$	142,835	 	$	120,667	 	$	148,077	 	$	120,667	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Components	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	142,658	 	$	137,416	 	$	115,498	 	$	142,658	 	$	115,498	 	
Reserve for Unfunded Commitments	 	5,419	 	5,419	 	5,169	 	5,419	 	5,169	 	
Total Reserve for Credit Losses	 	$	148,077	 	$	142,835	 	$	120,667	 	$	148,077	 	$	120,667	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases Outstanding	 	$	6,034,956	 	$	6,258,403	 	$	6,512,453	 	$	6,245,117	 	$	6,543,871	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)	 	1.46	%	1.65	%	0.45	%	1.33	%	0.36	%	
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding	 	2.41	%	2.23	%	1.77	%	2.41	%	1.77	%	

(1)   Certain prior period information has been reclassified to conform to current presentation.
(2)   Comprised of other revolving credit, installment, and lease financing.
(3)   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, 2009	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	54,059	 	$	39,650	 	$	4,275	 	$	10,903	 	$	108,887	 	
Provision for Credit Losses	 	15,599	 	11,918	 	33	 	(50	)	27,500	 	
Net Interest Income After Provision for Credit Losses	 	38,460	 	27,732	 	4,242	 	10,953	 	81,387	 	
Noninterest Income	 	25,095	 	14,668	 	14,026	 	3,011	 	56,800	 	
Noninterest Expense	 	(42,380	)	(25,072	)	(14,952	)	(1,583	)	(83,987	)	
Income Before Income Taxes	 	21,175	 	17,328	 	3,316	 	12,381	 	54,200	 	
Provision for Income Taxes	 	(7,865	)	(6,195	)	(1,227	)	(2,442	)	(17,729	)	
Net Income	 	13,310	 	11,133	 	2,089	 	9,939	 	36,471	 	
Total Assets as of September 30, 2009	 	$	3,475,273	 	$	2,548,944	 	$	253,580	 	$	5,930,228	 	$	12,208,025	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended September 30, 2008 (1)	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	61,524	 	$	33,280	 	$	3,922	 	$	4,849	 	$	103,575	 	
Provision for Credit Losses	 	7,395	 	11,906	 	1,089	 	(32	)	20,358	 	
Net Interest Income After Provision for Credit Losses	 	54,129	 	21,374	 	2,833	 	4,881	 	83,217	 	
Noninterest Income	 	24,362	 	13,378	 	17,458	 	1,788	 	56,986	 	
Noninterest Expense	 	(42,545	)	(25,164	)	(16,800	)	(2,281	)	(86,790	)	
Income Before Income Taxes	 	35,946	 	9,588	 	3,491	 	4,388	 	53,413	 	
Provision for Income Taxes	 	(13,301	)	(4,993	)	(1,292	)	13,582	 	(6,004	)	
Net Income	 	22,645	 	4,595	 	2,199	 	17,970	 	47,409	 	
Total Assets as of September 30, 2008 (1)	 	$	3,987,651	 	$	2,703,677	 	$	285,497	 	$	3,358,222	 	$	10,335,047	 	

(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, 2009	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	167,166	 	$	118,780	 	$	12,593	 	$	10,261	 	$	308,800	 	
Provision for Credit Losses	 	44,921	 	34,868	 	1,583	 	(295	)	81,077	 	
Net Interest Income After Provision for Credit Losses	 	122,245	 	83,912	 	11,010	 	10,556	 	227,723	 	
Noninterest Income	 	78,761	 	55,032	 	43,086	 	10,118	 	186,997	 	
Noninterest Expense	 	(130,165	)	(78,453	)	(47,309	)	(5,577	)	(261,504	)	
Income Before Income Taxes	 	70,841	 	60,491	 	6,787	 	15,097	 	153,216	 	
Provision for Income Taxes	 	(26,264	)	(21,964	)	(2,511	)	1,040	 	(49,699	)	
Net Income	 	44,577	 	38,527	 	4,276	 	16,137	 	103,517	 	
Total Assets as of September 30, 2009	 	$	3,475,273	 	$	2,548,944	 	$	253,580	 	$	5,930,228	 	$	12,208,025	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Nine Months Ended September 30, 2008 (1)	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	186,336	 	$	112,568	 	$	11,731	 	$	2,288	 	$	312,923	 	
Provision for Credit Losses	 	21,414	 	20,289	 	1,089	 	(835	)	41,957	 	
Net Interest Income After Provision for Credit Losses	 	164,922	 	92,279	 	10,642	 	3,123	 	270,966	 	
Noninterest Income	 	73,090	 	52,411	 	54,738	 	23,411	 	203,650	 	
Noninterest Expense	 	(126,772	)	(75,312	)	(50,026	)	(11,974	)	(264,084	)	
Income Before Income Taxes	 	111,240	 	69,378	 	15,354	 	14,560	 	210,532	 	
Provision for Income Taxes	 	(41,196	)	(27,133	)	(5,681	)	16,384	 	(57,626	)	
Net Income	 	70,044	 	42,245	 	9,673	 	30,944	 	152,906	 	
Total Assets as of September 30, 2008 (1)	 	$	3,987,651	 	$	2,703,677	 	$	285,497	 	$	3,358,222	 	$	10,335,047	 	

(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)	 	2009	 	2009	 	2009	 	2008 (1)	 	2008 (1)	 	
Quarterly Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	79,530	 	$	83,342	 	$	86,592	 	$	95,598	 	$	92,744	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	—	 	—	 	594	 	1,152	 	1,174	 	
Available-for-Sale	 	46,419	 	38,155	 	32,301	 	34,352	 	35,152	 	
Held-to-Maturity	 	2,179	 	2,369	 	2,567	 	2,735	 	2,870	 	
Deposits	 	3	 	5	 	10	 	25	 	33	 	
Funds Sold	 	320	 	526	 	577	 	48	 	141	 	
Other	 	277	 	276	 	276	 	276	 	490	 	
Total Interest Income	 	128,728	 	124,673	 	122,917	 	134,186	 	132,604	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	12,235	 	14,481	 	17,025	 	16,960	 	17,736	 	
Securities Sold Under Agreements to Repurchase	 	6,394	 	6,477	 	6,652	 	7,984	 	7,675	 	
Funds Purchased	 	5	 	5	 	5	 	175	 	507	 	
Short-Term Borrowings	 	—	 	—	 	—	 	103	 	13	 	
Long-Term Debt	 	1,207	 	859	 	2,173	 	3,110	 	3,098	 	
Total Interest Expense	 	19,841	 	21,822	 	25,855	 	28,332	 	29,029	 	
Net Interest Income	 	108,887	 	102,851	 	97,062	 	105,854	 	103,575	 	
Provision for Credit Losses	 	27,500	 	28,690	 	24,887	 	18,558	 	20,358	 	
Net Interest Income After Provision for Credit Losses	 	81,387	 	74,161	 	72,175	 	87,296	 	83,217	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	10,915	 	11,881	 	11,632	 	12,275	 	14,193	 	
Mortgage Banking	 	4,656	 	5,443	 	8,678	 	508	 	621	 	
Service Charges on Deposit Accounts	 	14,014	 	12,910	 	13,386	 	13,306	 	13,045	 	
Fees, Exchange, and Other Service Charges	 	14,801	 	15,410	 	14,976	 	14,897	 	15,604	 	
Investment Securities Gains (Losses), Net	 	(5	)	12	 	56	 	86	 	159	 	
Insurance	 	7,304	 	4,744	 	5,641	 	5,953	 	5,902	 	
Other	 	5,115	 	9,432	 	15,996	 	7,438	 	7,462	 	
Total Noninterest Income	 	56,800	 	59,832	 	70,365	 	54,463	 	56,986	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	46,387	 	44,180	 	47,028	 	43,737	 	46,764	 	
Net Occupancy	 	10,350	 	10,008	 	10,328	 	11,548	 	11,795	 	
Net Equipment	 	4,502	 	4,502	 	4,316	 	4,573	 	4,775	 	
Professional Fees	 	2,642	 	4,005	 	2,549	 	3,040	 	3,270	 	
FDIC Insurance	 	3,290	 	8,987	 	1,814	 	693	 	321	 	
Other	 	16,816	 	17,902	 	21,898	 	19,099	 	19,865	 	
Total Noninterest Expense	 	83,987	 	89,584	 	87,933	 	82,690	 	86,790	 	
Income Before Provision for Income Taxes	 	54,200	 	44,409	 	54,607	 	59,069	 	53,413	 	
Provision for Income Taxes	 	17,729	 	13,403	 	18,567	 	19,762	 	6,004	 	
Net Income	 	$	36,471	 	$	31,006	 	$	36,040	 	$	39,307	 	$	47,409	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Basic Earnings Per Share	 	$	0.76	 	$	0.65	 	$	0.76	 	$	0.83	 	$	1.00	 	
Diluted Earnings Per Share	 	$	0.76	 	$	0.65	 	$	0.75	 	$	0.82	 	$	0.99	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	$	5,931,358	 	$	6,149,911	 	$	6,338,726	 	$	6,530,233	 	$	6,539,458	 	
Total Assets	 	12,208,025	 	12,194,695	 	11,448,128	 	10,763,475	 	10,335,047	 	
Total Deposits	 	9,250,100	 	9,019,661	 	9,212,791	 	8,292,098	 	7,658,484	 	
Total Shareholders’ Equity	 	902,799	 	845,885	 	833,935	 	790,704	 	780,020	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.21	%	1.06	%	1.32	%	1.52	%	1.82	%	
Return on Average Shareholders’ Equity	 	16.44	 	14.49	 	17.86	 	19.56	 	24.17	 	
Efficiency Ratio (2)	 	50.69	 	55.07	 	52.52	 	51.58	 	54.05	 	
Net Interest Margin (3)	 	3.85	 	3.73	 	3.76	 	4.43	 	4.33	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Hawaii Economic Trends	 	Table 14	
 
 	 	Eight Months Ended	 	Year Ended	 	
(in thousands, except jobs)	 	August 31, 2009	 	December 31, 2008	 	December 31, 2007	 	
Hawaii Economic Trends	 	 	 	 	 	 	 	 	 	 	 	 	 	
State General Fund Revenues (1)	 	$	2,643.0	 	(14.4	)%	$	4,611.2	 	(1.5	)%	$	4,683.1	 	3.6	%	
General Excise and Use Tax Revenue (1)	 	$	1,563.7	 	(10.0	)	$	2,570.5	 	(2.0	)	$	2,623.5	 	6.8	 	
Jobs, seasonally adjusted (2)	 	607.5	 	(3.1	)	625.4	 	(0.7	)	630.1	 	1.0	 	
 
 	 	September 30,	 	June 30,	 	December 31,	 	
(annual percentage, except September and June)	 	2009	 	2009	 	2008	 	2007	 	
Unemployment(3)	 	 	 	 	 	 	 	 	 	
Statewide, seasonally adjusted	 	7.2	%	7.3	%	4.0	%	2.6	%	
 	 	 	 	 	 	 	 	 	 	
Oahu	 	6.3	 	6.8	 	3.5	 	2.5	 	
Island of Hawaii	 	10.8	 	11.4	 	5.5	 	3.3	 	
Maui	 	9.7	 	10.0	 	4.5	 	2.8	 	
Kauai	 	9.6	 	11.0	 	4.4	 	2.5	 	
 
 	 	September 30,	 	December 31,	 	
(percentage change, except months of inventory)	 	2009	 	2008	 	2007	 	
Housing Trends (Single Family Oahu) (4)	 	 	 	 	 	 	 	
Median Home Price	 	(8.0	)%	(3.0	)%	2.1	%	
Home Sales Volume (units)	 	(16.2	)	(24.4	)	(10.2	)	
Months of Inventory	 	5.3	 	8.0	 	6.0	 	
 
 	 	Monthly Visitor Arrivals,	 	Percentage Change	 	
(in thousands)	 	Seasonally Adjusted	 	from Previous Month	 	
Tourism(1)	 	 	 	 	 	
August 31, 2009	 	534.4	 	3.2	%	
July 31, 2009	 	517.7	 	2.5	 	
June 30, 2009	 	504.8	 	(9.0	)	
May 31, 2009	 	554.5	 	(0.1	)	
April 30, 2009	 	555.1	 	8.9	 	
March 31, 2009	 	509.6	 	(7.2	)	
February 28, 2009	 	549.4	 	1.7	 	
January 31, 2009	 	540.0	 	4.4	 	
December 31, 2008	 	517.4	 	(4.1	)	

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