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)	January 24, 2011	 	
 
BANK OF HAWAII CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware	 	1-6887	 	99-0148992	
(State of Incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	
 
130 Merchant Street, Honolulu, Hawaii	 	96813	
(Address of principal executive offices)	 	(Zip Code)	
 
(Registrant’s telephone number, including area code) (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 January 24, 2011, Bank of Hawaii Corporation announced its results of operations for the quarter ended December 30, 2010.  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                         January 24, 2011 Press Release: Bank of Hawaii Corporation 2010 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: January 24, 2011	 	 	     BANK OF HAWAII CORPORATION	
 	 	 	 	
 	 	By	/s/ MARK A. ROSSI	
 	 	Mark A. Rossi	 	
 	 	Vice Chairman and Corporate Secretary	

2

Exhibit 99.1

 
Bank of Hawaii Corporation 2010 Financial Results
 
·           2010 Diluted Earnings Per Share $3.80
·           2010 Net Income $183.9 Million
·           Diluted Earnings Per Share for the Fourth Quarter of 2010 $0.84
·           Net Income for the Fourth Quarter of 2010 $40.6 Million
·           Board of Directors Declares Dividend of $0.45 Per Share
 
FOR IMMEDIATE RELEASE
 
HONOLULU, HI (January 24, 2011) — Bank of Hawaii Corporation (NYSE: BOH) today reported net income of $40.6 million or $0.84 per diluted share for the fourth quarter of 2010 compared with $40.5 million or $0.84 per diluted share for the fourth quarter of 2009.  Net income for the full year of 2010 was $183.9 million or $3.80 per diluted share, up from net income of $144.0 million or $3.00 per diluted share in the previous year.
 
“Bank of Hawaii Corporation finished 2010 with solid financial performance,” said Peter S. Ho, Chairman, CEO, and President.  “During the quarter we continued to see strong core deposit growth.  Our loan portfolio grew slightly compared with the third quarter of 2010.  Our balance sheet remained strong with high levels of liquidity, reserves, and capital.  Credit quality continues to improve.  The Hawaii economy is continuing to recover due, in part, to improving arrival and spend statistics in our visitor industry.  Bank of Hawaii is well positioned to meet the needs of our marketplace as conditions improve.”
 
The return on average assets for the fourth quarter of 2010 was 1.24 percent and the return on average equity for the quarter was 15.08 percent.  The return on average assets in 2010 was 1.45 percent, up from 1.22 percent in 2009.  The return on average equity for the year was 18.16 percent, up from 16.42 percent in 2009.
 
Financial Highlights
 
Net interest income, on a taxable equivalent basis, for the fourth quarter of 2010 was $96.6 million, down $7.2 million from net interest income of $103.8 million in the fourth quarter of 2009 and down $2.2 million from net interest income of $98.8 million in the third quarter of 2010.  Net interest income, on a taxable equivalent basis, for the full year of 2010 was $407.5 million, down $6.0 million from net interest income of $413.5 million in 2009.  Analyses of changes in net interest income are included in Tables 7a, 7b and 7c.
 
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The net interest margin was 3.15 percent for the fourth quarter of 2010, a 42 basis point decrease from the same quarter last year and a 12 basis point decrease from the previous quarter. The net interest margin for the full year of 2010 was 3.41 percent, a 31 basis point decrease from 3.72 percent in 2009.  The reduction in the net interest margin was largely the result of higher levels of liquidity, lower interest rates, and lower loan balances.
 
Results for the fourth quarter of 2010 included a provision for credit losses of $5.3 million compared with $26.8 million in the fourth quarter of 2009 and $13.4 million in the third quarter of 2010.  The provision for credit losses equaled net charge-offs in the fourth and third quarters of 2010.  The provision for credit losses exceeded net charge-offs by $1.0 million in the fourth quarter of 2009.  The provision for credit losses for the full year of 2010 was $55.3 million compared with $107.9 million in 2009.
 
Noninterest income was $51.5 million for the fourth quarter of 2010, compared with $80.8 million in the fourth quarter of 2009 and $63.1 million in the third quarter of 2010. Noninterest income in the fourth quarter of 2009 included net gains of $25.7 million on sales of investment securities and net gains of $2.5 million related to the sale of the Company’s insurance subsidiary and the disposal of leased assets.  Noninterest income in the third quarter of 2010 included net gains of $7.9 million on the sales of investment securities, $3.8 million related to asset sales, and a loss of $1.4 million related to the disposition of a leveraged lease.  Noninterest income for the full year of 2010 was $255.3 million compared with noninterest income of $267.8 million in 2009.
 
Noninterest expense was $88.7 million in the fourth quarter of 2010, up slightly from noninterest expense of $88.5 million in the fourth quarter of 2009, and down $1.2 million compared with $89.9 million in the previous quarter.  Noninterest expense in the fourth quarter of 2010 included $1.9 million for employee incentives, $1.2 million for a refresh of personal computers, and a donation of $1.0 million to the Bank of Hawaii Foundation.  Partially offsetting these expenses were a $1.3 million gain on the sale of foreclosed real estate and a $1.0 million settlement gain on the extinguishment of retiree life insurance obligations.  Noninterest expense in the fourth quarter of 2009 included $4.1 million for employee grants to purchase company stock, $2.0 million for employee incentives, and a donation of $1.0 million to the Bank of Hawaii Foundation.  Noninterest expense in the third quarter of 2010 included $5.2 million for the early termination of securities sold under agreements to repurchase.  Full year salaries and benefits expense in 2010 decreased $2.9 million, or 1.5 percent compared to 2009.  An analysis of salary and benefit expenses is included in Table 8.  Noninterest expense for the full year of 2010 was $346.2 million, down $3.8 million from 2009.
 
The efficiency ratio for the fourth quarter of 2010 was 60.05 percent compared with 48.02 percent in the same quarter last year and 55.57 percent in the previous quarter.  The efficiency ratio for the full year of 2010 was 52.32 percent, up slightly from 51.46 percent during the full year of 2009.
 
The effective tax rate for the fourth quarter of 2010 was 24.5 percent compared with 41.3 percent in the same quarter last year and 24.7 percent in the previous quarter.  The lower effective tax rate for the fourth quarter of 2010 compared to the fourth quarter of 2009 was primarily due to an adjustment to tax reserves determined during the quarter.  The effective tax rate for the full year of 2010 was 29.3 percent compared with 35.2 percent for the full year of 2009.  The lower effective tax rate for 2010 was primarily due to a first quarter adjustment in the expected utilization of capital losses on the sale of a low-income housing investment, the disposition of two leveraged leases in the third quarter, and the previously discussed adjustment in the fourth quarter.
 
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The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury & Other.  Results are determined based on the Company’s internal financial management reporting process and organizational structure.  Selected financial information for the business segments is included in Tables 12a and 12b.
 
Asset Quality
 
The Company’s overall asset quality reflects the improving Hawaii economy.  Non-performing assets were $37.8 million at December 31, 2010, down from $48.3 million at December 31, 2009, and down from $45.2 million at September 30, 2010.  As a percentage of total loans and leases, including loans held for sale and foreclosed real estate, non-performing assets were 0.71 percent at December 31, 2010.  Non-accrual loans and leases declined to $35.9 million at December 31, 2010, representing 0.67 percent of total loans and leases.  Accruing loans and leases past due 90 days or more decreased to $7.6 million during the fourth quarter of 2010.  More information on non-performing assets and accruing loans and leases past due 90 days is presented in Table 10.
 
Net charge-offs during the fourth quarter of 2010 were $5.3 million or 0.40 percent annualized of total average loans and leases, down from $25.8 million in the fourth quarter of 2009, and $13.4 million in the third quarter of 2010.  Net charge-offs for the fourth quarter of 2010 included recoveries of $7.3 million on two commercial construction loans.  Net charge-offs for the full year of 2010 were $51.6 million, or 0.94 percent annualized of total average loans and leases, down from $87.7 million, or 1.43 percent annualized of total average loans and leases in 2009.
 
The allowance for loan and lease losses was $147.4 million at December 31, 2010, unchanged from September 30, 2010, and up from $143.7 million at December 31, 2009.  The ratio of the allowance for loan and lease losses to total loans and leases was 2.76 percent at December 31, 2010.  The reserve for unfunded commitments at December 31, 2010 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 $13.13 billion at December 31, 2010, an increase from total assets of $12.41 billion at December 31, 2009, and up from total assets of $12.72 billion at September 30, 2010.  Growth in investment securities during 2010 offset a decline in loan balances due to reduced demand, payoffs, and loan sales to reduce portfolio risk.  Total loans and leases were $5.33 billion at December 31, 2010, down from $5.76 billion at December 31, 2009, and up from $5.31 billion at September 30, 2010.  Loan and lease portfolio balances, including the higher risk loans outstanding, are summarized in Table 9.
 
Deposit generation continued to remain strong during the fourth quarter of 2010.  Total deposits increased to $9.89 billion at December 31, 2010, higher than total deposits of $9.41 billion at December 31, 2009, and up from $9.60 billion at September 30, 2010.  Average total deposits were $9.68 billion in the fourth quarter of 2010, higher than average deposits of $9.32 billion during the same quarter last year, and up from average deposits of $9.58 billion during the previous quarter.
 
As a result of the strong deposit growth, the investment portfolio grew to $6.66 billion at year-end 2010, compared to $5.51 billion at December 31, 2009 and $6.36 billion at September 30, 2010.
 
During the fourth quarter of 2010, the Company repurchased 258.0 thousand shares of common stock at a total cost of $11.7 million under its share repurchase program.  The average cost was $45.36 per share repurchased.  From January 3 through January 21, 2011, the Company repurchased an additional 63.0 thousand shares of common stock at an average cost of $47.25 per share repurchased.  From the beginning of the share repurchase program initiated during July 2001 through December 31, 2010, the
 
3

 
Company has repurchased 46.0 million shares and returned over $1.6 billion to shareholders at an average cost of $35.55 per share.  Remaining buyback authority under the share repurchase program was $63.9 million at December 31, 2010.
 
Total shareholders’ equity was $1.01 billion at December 31, 2010, compared to $0.90 billion at December 31, 2009, and $1.04 billion at September 30, 2010.  The ratio of tangible common equity to risk-weighted assets was 19.29 percent at December 31, 2010, up from 15.45 percent at December 31, 2009, and down slightly from 19.50 percent at September 30, 2010.  At December 31, 2010, the Tier 1 leverage ratio was 7.15 percent, up from to 6.76 percent at December 31, 2009, and unchanged from September 30, 2010.
 
The Company’s Board of Directors declared a quarterly cash dividend of $0.45 per share on the Company’s outstanding shares.  The dividend will be payable on March 14, 2011 to shareholders of record at the close of business on February 28, 2011.
 
Hawaii Economy
 
Hawaii’s economy continued to recover during the fourth quarter of 2010 due to increasing visitor arrivals and spending.  For the first 11 months of 2010, total visitor arrivals increased 8.6 percent compared to the same period in 2009.  Total visitor spending for the first 11 months of 2010 were up 16 percent compared to the same period last year.  Hotel occupancy continued to improve and revenue per available room has finally begun to show signs of improvement.  Overall, state job growth has begun to stabilize and the statewide unemployment rate remains unchanged for the fifth straight month at 6.4 percent.  Home prices and sales remained fairly stable during the quarter.  More information on Hawaii economic trends is presented in Table 14.
 
Conference Call Information
 
The Company will review its 2010 financial results today at 8:00 a.m. Hawaii Time (1:00 p.m. Eastern Time).  The call will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation’s web site, www.boh.com.  The conference call number for participants in the United States is 866-783-2137.  International participants should call 857-350-1596.  Use the pass code “Bank of Hawaii” to access the call.  A replay of the conference call will be available for one week beginning Monday, January 24, 2011 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the number 57311607 when prompted.  A replay will also be available via the Investor Relations link of the Company’s web site.
 
Forward-Looking Statements
 
This news release, and other statements made by the Company in connection with it may contain “forward-looking statements”, such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations.  Do not unduly rely on forward-looking statements.  Actual results might differ significantly from our forecasts and expectations because of a variety of factors.  More information about these factors is contained in Bank of Hawaii Corporation’s Annual Report on Form 10-K for the year ended December 31, 2009, which was filed with the U.S. Securities and Exchange Commission.  We do not promise 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.
 
# # # #
 
4

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Financial Highlights	 	Table 1a	
 
 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands, except per share amounts)	 	2010	 	2010	 	2009	 	2010	 	2009	 	
For the Period:	 	 	 	 	 	 	 	 	 	 	 	
Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	96,273	 	$	98,626	 	$	103,534	 	$	406,480	 	$	412,334	 	
Provision for Credit Losses	 	5,278	 	13,359	 	26,801	 	55,287	 	107,878	 	
Total Noninterest Income	 	51,477	 	63,125	 	80,811	 	255,258	 	267,808	 	
Total Noninterest Expense	 	88,722	 	89,890	 	88,520	 	346,236	 	350,024	 	
Net Income	 	40,578	 	44,064	 	40,516	 	183,942	 	144,033	 	
Basic Earnings Per Share	 	0.84	 	0.91	 	0.85	 	3.83	 	3.02	 	
Diluted Earnings Per Share	 	0.84	 	0.91	 	0.84	 	3.80	 	3.00	 	
Dividends Declared Per Share	 	0.45	 	0.45	 	0.45	 	1.80	 	1.80	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.24	%	1.37	%	1.31	%	1.45	%	1.22	%	
Return on Average Shareholders’ Equity	 	15.08	 	16.64	 	16.91	 	18.16	 	16.42	 	
Efficiency Ratio1	 	60.05	 	55.57	 	48.02	 	52.32	 	51.46	 	
Operating Leverage2	 	(17.86	)	(17.29	)	17.29	 	(4.43	)	—	 	
Net Interest Margin3	 	3.15	 	3.27	 	3.57	 	3.41	 	3.72	 	
Dividend Payout Ratio4	 	53.57	 	49.45	 	52.94	 	47.00	 	59.60	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Balances	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases	 	$	5,317,815	 	$	5,368,177	 	$	5,847,820	 	$	5,472,534	 	$	6,144,976	 	
Average Assets	 	12,964,973	 	12,797,219	 	12,279,458	 	12,687,717	 	11,783,404	 	
Average Deposits	 	9,677,452	 	9,576,936	 	9,322,632	 	9,509,130	 	9,108,432	 	
Average Shareholders’ Equity	 	1,067,429	 	1,050,535	 	950,833	 	1,012,746	 	877,170	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Market Price Per Share of Common Stock	 	 	 	 	 	 	 	 	 	 	 	
Closing	 	$	47.21	 	$	44.92	 	$	47.06	 	$	47.21	 	$	47.06	 	
High	 	48.27	 	51.60	 	48.14	 	54.10	 	48.14	 	
Low	 	42.94	 	43.77	 	39.43	 	41.60	 	25.33	 	
 
 	 	December 31,	 	September 30,	 	December 31,	 	
 	 	2010	 	2010	 	2009	 	
As of Period End:	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	
Loans and Leases	 	$	5,335,792	 	$	5,312,054	 	$	5,759,785	 	
Total Assets	 	13,126,787	 	12,716,603	 	12,414,827	 	
Total Deposits	 	9,888,995	 	9,602,462	 	9,409,676	 	
Long-Term Debt	 	32,652	 	40,292	 	90,317	 	
Total Shareholders’ Equity	 	1,011,133	 	1,039,561	 	895,973	 	
 	 	 	 	 	 	 	 	
Asset Quality	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	147,358	 	$	147,358	 	$	143,658	 	
Non-Performing Assets5	 	37,786	 	45,174	 	48,331	 	
 	 	 	 	 	 	 	 	
Financial Ratios	 	 	 	 	 	 	 	
Allowance to Loans and Leases Outstanding	 	2.76	%	2.77	%	2.49	%	
Tier 1 Capital Ratio6	 	18.28	 	17.71	 	14.84	 	
Total Capital Ratio6	 	19.55	 	18.98	 	16.11	 	
Tier 1 Leverage Ratio6	 	7.15	 	7.15	 	6.76	 	
Total Shareholders’ Equity to Total Assets	 	7.70	 	8.17	 	7.22	 	
Tangible Common Equity to Tangible Assets7	 	7.48	 	7.95	 	6.98	 	
Tangible Common Equity to Risk-Weighted Assets7	 	19.29	 	19.50	 	15.45	 	
 	 	 	 	 	 	 	 	
Non-Financial Data	 	 	 	 	 	 	 	
Full-Time Equivalent Employees	 	2,399	 	2,428	 	2,418	 	
Branches and Offices	 	82	 	83	 	83	 	
ATMs	 	502	 	492	 	485	 	

1  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
2  Operating leverage is defined as the percentage change in income before the provision for credit losses and the provision for income taxes.  Measures are presented on a linked quarter basis.
3  Net interest margin is defined as net interest income, on a taxable equivalent basis, as a percentage of average earning assets.
4  Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.
5  Excluded from non-performing assets are contractually binding non-accrual loans held for sale of $4.2 million as of December 31, 2009.
6  Tier 1 Capital Ratio, Total Capital Ratio, and Tier 1 Leverage Ratio as of December 31, 2009 were revised from 14.88%, 16.15%, and 6.78%, respectively.
7  Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures.  See reconciliation of Non-GAAP financial measures in Table 1b.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Reconciliation of Non-GAAP Financial Measures	 	Table 1b	
 
 	 	December 31,	 	September 30,	 	December 31,	 	
(dollars in thousands)	 	2010	 	2010	 	2009	 	
 	 	 	 	 	 	 	 	
Total Shareholders’ Equity	 	$	1,011,133	 	$	1,039,561	 	$	895,973	 	
Less: Goodwill	 	31,517	 	31,517	 	31,517	 	
Intangible Assets	 	154	 	177	 	233	 	
Tangible Common Equity	 	$	979,462	 	$	1,007,867	 	$	864,223	 	
 	 	 	 	 	 	 	 	
Total Assets	 	$	13,126,787	 	$	12,716,603	 	$	12,414,827	 	
Less: Goodwill	 	31,517	 	31,517	 	31,517	 	
Intangible Assets	 	154	 	177	 	233	 	
Tangible Assets	 	$	13,095,116	 	$	12,684,909	 	$	12,383,077	 	
 	 	 	 	 	 	 	 	
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements	 	$	5,076,909	 	$	5,167,838	 	$	5,594,532	 	
 	 	 	 	 	 	 	 	
Total Shareholders’ Equity to Total Assets	 	7.70	%	8.17	%	7.22	%	
Tangible Common Equity to Tangible Assets (Non-GAAP)	 	7.48	%	7.95	%	6.98	%	
 	 	 	 	 	 	 	 	
Tier 1 Capital Ratio1	 	18.28	%	17.71	%	14.84	%	
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)	 	19.29	%	19.50	%	15.45	%	

1  Tier 1 Capital Ratio as of December 31, 2009 was revised from 14.88%.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Net Significant Income (Expense) Items	 	Table 2	
 
 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands)	 	2010	 	2010	 	2009	 	2010	 	2009	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Cash Basis Interest Recoveries	 	$	—	 	$	—	 	$	—	 	$	2,832	 	$	—	 	
Leveraged Lease Residual Value Impairment	 	—	 	—	 	—	 	—	 	(968	)	
Investment Securities Gains, Net	 	—	 	7,877	 	25,707	 	42,849	 	25,707	 	
Gain on Mutual Fund Sale	 	—	 	2,852	 	—	 	2,852	 	—	 	
Gain on Disposal of Leased Equipment	 	—	 	(1,449	)	977	 	(260	)	13,795	 	
Gain on Sale of Insurance Subsidiaries	 	—	 	904	 	1,511	 	904	 	2,363	 	
Increase in Allowance for Loan and Lease Losses	 	—	 	—	 	(1,000	)	(3,700	)	(20,160	)	
Employee Incentive Awards	 	(1,949	)	—	 	(2,000	)	(1,949	)	(2,000	)	
Cash Grants for the Purchase of Company Stock	 	(196	)	—	 	(4,100	)	(3,446	)	(4,100	)	
Settlement Gain on the Extinguishment of Retiree Life Insurance Obligation	 	951	 	—	 	—	 	951	 	—	 	
PC Refresh	 	(1,192	)	—	 	—	 	(1,192	)	—	 	
FDIC Special Assessment	 	—	 	—	 	—	 	—	 	(5,744	)	
Legal Contingencies	 	—	 	—	 	1,152	 	—	 	(1,148	)	
Gain on Sale of Foreclosed Real Estate	 	1,343	 	—	 	—	 	1,343	 	—	 	
Bank of Hawaii Foundation	 	(1,000	)	—	 	(1,000	)	(1,000	)	(1,000	)	
REPO Early Termination Expense	 	—	 	(5,189	)	—	 	(5,189	)	—	 	
Market Premium on Repurchased Long-Term Privately Placed Debt	 	—	 	—	 	—	 	—	 	(875	)	
Significant Income (Expense) Items Before the Provision (Benefit) for Income Taxes	 	(2,043	)	4,995	 	21,247	 	34,995	 	5,870	 	
Income Tax Impact Related to Lease Transactions	 	—	 	(4,003	)	568	 	(3,541	)	3,781	 	
Income Tax Impact	 	(715	)	2,256	 	7,095	 	12,340	 	(2,434	)	
Net Significant Income (Expense) Items	 	$	(1,328	)	$	6,742	 	$	13,584	 	$	26,196	 	$	4,523	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Income	 	Table 3	
 
 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands, except per share amounts)	 	2010	 	2010	 	2009	 	2010	 	2009	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	67,915	 	$	70,198	 	$	77,457	 	$	287,381	 	$	326,921	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	—	 	—	 	—	 	—	 	594	 	
Available-for-Sale	 	39,546	 	40,775	 	41,369	 	169,151	 	158,244	 	
Held-to-Maturity	 	1,388	 	1,553	 	2,018	 	6,504	 	9,133	 	
Deposits	 	7	 	5	 	2	 	28	 	20	 	
Funds Sold	 	160	 	211	 	353	 	1,076	 	1,776	 	
Other	 	279	 	278	 	277	 	1,111	 	1,106	 	
Total Interest Income	 	109,295	 	113,020	 	121,476	 	465,251	 	497,794	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	5,918	 	7,041	 	10,317	 	29,196	 	54,058	 	
Securities Sold Under Agreements to Repurchase	 	6,425	 	6,670	 	6,411	 	25,996	 	25,934	 	
Funds Purchased	 	7	 	10	 	7	 	30	 	22	 	
Long-Term Debt	 	672	 	673	 	1,207	 	3,549	 	5,446	 	
Total Interest Expense	 	13,022	 	14,394	 	17,942	 	58,771	 	85,460	 	
Net Interest Income	 	96,273	 	98,626	 	103,534	 	406,480	 	412,334	 	
Provision for Credit Losses	 	5,278	 	13,359	 	26,801	 	55,287	 	107,878	 	
Net Interest Income After Provision for Credit Losses	 	90,995	 	85,267	 	76,733	 	351,193	 	304,456	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	11,190	 	10,534	 	11,746	 	44,889	 	46,174	 	
Mortgage Banking	 	4,549	 	6,811	 	4,218	 	18,576	 	22,995	 	
Service Charges on Deposit Accounts	 	11,632	 	12,737	 	14,160	 	53,039	 	54,470	 	
Fees, Exchange, and Other Service Charges	 	15,196	 	15,500	 	14,935	 	61,006	 	60,122	 	
Investment Securities Gains (Losses), Net	 	(1	)	7,877	 	25,707	 	42,848	 	25,770	 	
Insurance	 	2,309	 	2,646	 	2,326	 	9,961	 	20,015	 	
Other	 	6,602	 	7,020	 	7,719	 	24,939	 	38,262	 	
Total Noninterest Income	 	51,477	 	63,125	 	80,811	 	255,258	 	267,808	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	46,809	 	46,840	 	50,973	 	185,713	 	188,568	 	
Net Occupancy	 	10,504	 	10,186	 	10,367	 	40,988	 	41,053	 	
Net Equipment	 	5,902	 	4,545	 	4,393	 	19,371	 	17,713	 	
Professional Fees	 	2,116	 	905	 	3,243	 	7,104	 	12,439	 	
FDIC Insurance	 	3,198	 	3,159	 	3,251	 	12,564	 	17,342	 	
Other	 	20,193	 	24,255	 	16,293	 	80,496	 	72,909	 	
Total Noninterest Expense	 	88,722	 	89,890	 	88,520	 	346,236	 	350,024	 	
Income Before Provision for Income Taxes	 	53,750	 	58,502	 	69,024	 	260,215	 	222,240	 	
Provision for Income Taxes	 	13,172	 	14,438	 	28,508	 	76,273	 	78,207	 	
Net Income	 	$	40,578	 	$	44,064	 	$	40,516	 	$	183,942	 	$	144,033	 	
Basic Earnings Per Share	 	$	0.84	 	$	0.91	 	$	0.85	 	$	3.83	 	$	3.02	 	
Diluted Earnings Per Share	 	$	0.84	 	$	0.91	 	$	0.84	 	$	3.80	 	$	3.00	 	
Dividends Declared Per Share	 	$	0.45	 	$	0.45	 	$	0.45	 	$	1.80	 	$	1.80	 	
Basic Weighted Average Shares	 	48,034,234	 	48,189,358	 	47,813,490	 	48,055,025	 	47,702,500	 	
Diluted Weighted Average Shares	 	48,275,474	 	48,462,154	 	48,223,406	 	48,355,965	 	48,009,277	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Condition	 	Table 4	
 
 	 	December 31,	 	September 30,	 	December 31,	 	
(dollars in thousands)	 	2010	 	2010	 	2009	 	
Assets	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	3,472	 	$	2,641	 	$	8,755	 	
Funds Sold	 	438,327	 	174,288	 	291,546	 	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	6,533,874	 	6,213,949	 	5,330,834	 	
Held-to-Maturity (Fair Value of $134,028; $148,631; and $186,668)	 	127,249	 	141,192	 	181,018	 	
Loans Held for Sale	 	17,564	 	18,765	 	16,544	 	
Loans and Leases	 	5,335,792	 	5,312,054	 	5,759,785	 	
Allowance for Loan and Lease Losses	 	(147,358	)	(147,358	)	(143,658	)	
Net Loans and Leases	 	5,188,434	 	5,164,696	 	5,616,127	 	
Total Earning Assets	 	12,308,920	 	11,715,531	 	11,444,824	 	
Cash and Noninterest-Bearing Deposits	 	165,748	 	267,597	 	254,766	 	
Premises and Equipment	 	108,170	 	108,855	 	110,976	 	
Customers’ Acceptances	 	437	 	1,087	 	1,386	 	
Accrued Interest Receivable	 	41,151	 	40,606	 	45,334	 	
Foreclosed Real Estate	 	1,928	 	5,910	 	3,132	 	
Mortgage Servicing Rights	 	25,379	 	24,316	 	25,970	 	
Goodwill	 	31,517	 	31,517	 	31,517	 	
Other Assets	 	443,537	 	521,184	 	496,922	 	
Total Assets	 	$	13,126,787	 	$	12,716,603	 	$	12,414,827	 	
 	 	 	 	 	 	 	 	
Liabilities	 	 	 	 	 	 	 	
Deposits	 	 	 	 	 	 	 	
Noninterest-Bearing Demand	 	$	2,447,713	 	$	2,290,033	 	$	2,252,083	 	
Interest-Bearing Demand	 	1,871,718	 	1,814,934	 	1,609,413	 	
Savings	 	4,526,893	 	4,423,095	 	4,405,969	 	
Time	 	1,042,671	 	1,074,400	 	1,142,211	 	
Total Deposits	 	9,888,995	 	9,602,462	 	9,409,676	 	
Funds Purchased	 	9,478	 	9,832	 	8,888	 	
Short-Term Borrowings	 	6,200	 	7,100	 	6,900	 	
Securities Sold Under Agreements to Repurchase	 	1,901,084	 	1,616,243	 	1,618,717	 	
Long-Term Debt	 	32,652	 	40,292	 	90,317	 	
Banker’s Acceptances	 	437	 	1,087	 	1,386	 	
Retirement Benefits Payable	 	30,885	 	35,461	 	37,435	 	
Accrued Interest Payable	 	5,007	 	6,492	 	7,026	 	
Taxes Payable and Deferred Taxes	 	121,517	 	219,525	 	229,140	 	
Other Liabilities	 	119,399	 	138,548	 	109,369	 	
Total Liabilities	 	12,115,654	 	11,677,042	 	11,518,854	 	
Shareholders’ Equity	 	 	 	 	 	 	 	
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: December 31, 2010 - 57,115,287 / 48,097,672; September 30, 2010 - 57,115,287 / 48,265,014; and December 31, 2009 - 57,028,239 / 48,018,943)	 	570	 	570	 	569	 	
Capital Surplus	 	500,888	 	499,437	 	494,318	 	
Accumulated Other Comprehensive Income	 	26,965	 	66,953	 	6,925	 	
Retained Earnings	 	932,629	 	914,901	 	843,521	 	
Treasury Stock, at Cost (Shares: December 31, 2010 - 9,017,615; September 30, 2010 - 8,850,273; and December 31, 2009 - 9,009,296)	 	(449,919	)	(442,300	)	(449,360	)	
Total Shareholders’ Equity	 	1,011,133	 	1,039,561	 	895,973	 	
Total Liabilities and Shareholders’ Equity	 	$	13,126,787	 	$	12,716,603	 	$	12,414,827	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Shareholders’ Equity	 	Table 5	
 
 	 	 	 	 	 	 	 	Accum.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Other	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Comprehensive	 	 	 	 	 	 	 	
 	 	 	 	Common	 	Capital	 	Income	 	Retained	 	Treasury	 	Comprehensive	 	
(dollars in thousands)	 	Total	 	Stock	 	Surplus	 	(Loss)	 	Earnings	 	Stock	 	Income	 	
Balance as of December 31, 2008	 	$	790,704	 	$	568	 	$	492,515	 	$	(28,888	)	$	787,924	 	$	(461,415	)	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	144,033	 	—	 	—	 	—	 	144,033	 	—	 	$	144,033	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	 	30,567	 	—	 	—	 	30,567	 	—	 	—	 	30,567	 	
Net Gain related to Defined Benefit Plans	 	5,246	 	—	 	—	 	5,246	 	—	 	—	 	5,246	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	179,846	 	
Share-Based Compensation	 	3,552	 	—	 	3,552	 	—	 	—	 	—	 	 	 	
Common Stock Issued under Purchase and Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Compensation Plans and Related Tax Benefits (301,306 shares)	 	9,444	 	1	 	(1,749	)	—	 	(2,200	)	13,392	 	 	 	
Common Stock Repurchased (35,734 shares)	 	(1,337	)	—	 	—	 	—	 	—	 	(1,337	)	 	 	
Cash Dividends Paid	 	(86,236	)	—	 	—	 	—	 	(86,236	)	—	 	 	 	
Balance as of December 31, 2009	 	$	895,973	 	$	569	 	$	494,318	 	$	6,925	 	$	843,521	 	$	(449,360	)	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	183,942	 	—	 	—	 	—	 	183,942	 	—	 	$	183,942	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	 	20,231	 	—	 	—	 	20,231	 	—	 	—	 	20,231	 	
Settlement Gain Related to Defined Benefit Plans	 	(608	)	—	 	—	 	(608	)	—	 	—	 	(608	)	
Net Gain related to Defined Benefit Plans	 	417	 	—	 	—	 	417	 	—	 	—	 	417	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	$	203,982	 	
Share-Based Compensation	 	3,841	 	—	 	3,841	 	—	 	—	 	—	 	 	 	
Common Stock Issued under Purchase and Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Compensation Plans and Related Tax Benefits (617,345 shares)	 	19,141	 	1	 	2,729	 	—	 	(8,011	)	24,422	 	 	 	
Common Stock Repurchased (538,616 shares)	 	(24,981	)	—	 	—	 	—	 	—	 	(24,981	)	 	 	
Cash Dividends Paid	 	(86,823	)	—	 	—	 	—	 	(86,823	)	—	 	 	 	
Balance as of December 31, 2010	 	$	1,011,133	 	$	570	 	$	500,888	 	$	26,965	 	$	932,629	 	$	(449,919	)	 	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Average Balances and Interest Rates - Taxable Equivalent Basis	 	Table 6a	
 
 	 	Three Months Ended	 	Three Months Ended	 	Three Months Ended	 	
 	 	December 31, 2010	 	September 30, 2010	 	December 31, 2009	 	
 	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	
(dollars in millions)	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	3.2	 	$	—	 	0.81	%	$	4.4	 	$	—	 	0.49	%	$	8.2	 	$	—	 	0.09	%	
Funds Sold	 	211.4	 	0.2	 	0.30	 	303.4	 	0.2	 	0.27	 	534.1	 	0.3	 	0.26	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	6,468.5	 	39.8	 	2.46	 	6,158.5	 	41.0	 	2.66	 	4,939.2	 	41.6	 	3.37	 	
Held-to-Maturity	 	134.8	 	1.4	 	4.12	 	148.2	 	1.6	 	4.19	 	188.4	 	2.0	 	4.29	 	
Loans Held for Sale	 	13.2	 	0.1	 	4.77	 	12.7	 	0.1	 	4.59	 	15.6	 	0.2	 	3.95	 	
Loans and Leases1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	752.7	 	7.8	 	4.13	 	750.6	 	7.8	 	4.13	 	820.3	 	8.3	 	4.01	 	
Commercial Mortgage	 	838.0	 	10.5	 	5.00	 	808.8	 	10.4	 	5.10	 	793.9	 	10.2	 	5.09	 	
Construction	 	86.1	 	1.1	 	5.09	 	87.6	 	1.1	 	4.95	 	132.2	 	1.3	 	3.81	 	
Commercial Lease Financing	 	352.6	 	2.3	 	2.57	 	380.1	 	2.6	 	2.79	 	438.0	 	3.6	 	3.34	 	
Residential Mortgage	 	2,078.1	 	28.4	 	5.46	 	2,076.0	 	29.5	 	5.68	 	2,223.3	 	32.1	 	5.77	 	
Home Equity	 	821.3	 	10.3	 	4.95	 	849.4	 	10.7	 	4.99	 	939.2	 	11.9	 	5.05	 	
Automobile	 	214.4	 	4.0	 	7.38	 	229.1	 	4.4	 	7.54	 	291.8	 	5.8	 	7.85	 	
Other2	 	174.6	 	3.4	 	7.68	 	186.6	 	3.5	 	7.55	 	209.1	 	4.1	 	7.76	 	
Total Loans and Leases	 	5,317.8	 	67.8	 	5.07	 	5,368.2	 	70.0	 	5.20	 	5,847.8	 	77.3	 	5.26	 	
Other	 	79.9	 	0.3	 	1.39	 	79.8	 	0.3	 	1.39	 	79.7	 	0.3	 	1.39	 	
Total Earning Assets3	 	12,228.8	 	109.6	 	3.57	 	12,075.2	 	113.2	 	3.74	 	11,613.0	 	121.7	 	4.18	 	
Cash and Noninterest-Bearing Deposits	 	240.3	 	 	 	 	 	227.3	 	 	 	 	 	209.0	 	 	 	 	 	
Other Assets	 	495.9	 	 	 	 	 	494.7	 	 	 	 	 	457.5	 	 	 	 	 	
Total Assets	 	$	12,965.0	 	 	 	 	 	$	12,797.2	 	 	 	 	 	$	12,279.5	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,769.4	 	0.2	 	0.06	 	$	1,770.1	 	0.2	 	0.06	 	$	1,573.7	 	0.2	 	0.06	 	
Savings	 	4,486.7	 	2.6	 	0.23	 	4,460.9	 	3.5	 	0.31	 	4,415.6	 	5.5	 	0.49	 	
Time	 	1,050.9	 	3.1	 	1.18	 	1,075.7	 	3.3	 	1.22	 	1,188.2	 	4.6	 	1.53	 	
Total Interest-Bearing Deposits	 	7,307.0	 	5.9	 	0.32	 	7,306.7	 	7.0	 	0.38	 	7,177.5	 	10.3	 	0.57	 	
Short-Term Borrowings	 	20.1	 	—	 	0.14	 	26.6	 	—	 	0.15	 	27.9	 	—	 	0.10	 	
Securities Sold Under Agreements to Repurchase	 	1,774.8	 	6.4	 	1.42	 	1,706.2	 	6.7	 	1.53	 	1,452.2	 	6.4	 	1.73	 	
Long-Term Debt	 	40.0	 	0.7	 	6.72	 	40.3	 	0.7	 	6.68	 	91.4	 	1.2	 	5.27	 	
Total Interest-Bearing Liabilities	 	9,141.9	 	13.0	 	0.56	 	9,079.8	 	14.4	 	0.63	 	8,749.0	 	17.9	 	0.81	 	
Net Interest Income	 	 	 	$	96.6	 	 	 	 	 	$	98.8	 	 	 	 	 	$	103.8	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.01	%	 	 	 	 	3.11	%	 	 	 	 	3.37	%	
Net Interest Margin	 	 	 	 	 	3.15	%	 	 	 	 	3.27	%	 	 	 	 	3.57	%	
Noninterest-Bearing Demand Deposits	 	2,370.5	 	 	 	 	 	2,270.2	 	 	 	 	 	2,145.2	 	 	 	 	 	
Other Liabilities	 	385.2	 	 	 	 	 	396.7	 	 	 	 	 	434.5	 	 	 	 	 	
Shareholders’ Equity	 	1,067.4	 	 	 	 	 	1,050.5	 	 	 	 	 	950.8	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	12,965.0	 	 	 	 	 	$	12,797.2	 	 	 	 	 	$	12,279.5	 	 	 	 	 	

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 $300,000, $199,000, and $251,000 for the three months ended December 31, 2010, September 30, 2010, and December 31, 2009, respectively.

 
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable Equivalent Basis	Table 6b	
 
 	 	Year Ended
 December 31, 2010	 	Year Ended
 December 31, 2009	 	
(dollars in millions)	 	Average
 Balance	 	Income/
 Expense	 	Yield/
Rate	 	Average
 Balance	 	Income/
Expense	 	Yield/
Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	4.7	 	$	—	 	0.59	%	$	5.8	 	$	—	 	0.34	%	
Funds Sold	 	390.2	 	1.1	 	0.28	 	690.9	 	1.8	 	0.26	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trading	 	—	 	—	 	—	 	12.0	 	0.6	 	4.94	 	
Available-for-Sale	 	5,854.1	 	170.1	 	2.91	 	3,938.2	 	159.4	 	4.05	 	
Held-to-Maturity	 	154.2	 	6.5	 	4.22	 	211.2	 	9.1	 	4.33	 	
Loans Held for Sale	 	10.8	 	0.9	 	8.51	 	21.7	 	0.8	 	3.85	 	
Loans and Leases1	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	764.2	 	33.7	 	4.41	 	929.4	 	37.6	 	4.05	 	
Commercial Mortgage	 	827.7	 	42.0	 	5.07	 	769.1	 	39.9	 	5.19	 	
Construction	 	95.4	 	4.8	 	5.08	 	142.9	 	5.7	 	3.97	 	
Commercial Lease Financing	 	385.1	 	11.3	 	2.92	 	453.7	 	13.8	 	3.04	 	
Residential Mortgage	 	2,105.6	 	118.7	 	5.64	 	2,322.6	 	136.1	 	5.86	 	
Home Equity	 	863.7	 	43.2	 	4.99	 	982.3	 	49.9	 	5.08	 	
Automobile	 	241.2	 	18.3	 	7.58	 	319.3	 	25.3	 	7.91	 	
Other2	 	189.6	 	14.5	 	7.66	 	225.7	 	17.8	 	7.87	 	
Total Loans and Leases	 	5,472.5	 	286.5	 	5.23	 	6,145.0	 	326.1	 	5.31	 	
Other	 	79.8	 	1.1	 	1.39	 	79.7	 	1.1	 	1.39	 	
Total Earning Assets3	 	11,966.3	 	466.2	 	3.90	 	11,104.5	 	498.9	 	4.49	 	
Cash and Noninterest-Bearing Deposits	 	229.6	 	 	 	 	 	214.8	 	 	 	 	 	
Other Assets	 	491.8	 	 	 	 	 	464.1	 	 	 	 	 	
Total Assets	 	$	12,687.7	 	 	 	 	 	$	11,783.4	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,715.8	 	1.1	 	0.06	 	$	1,747.7	 	1.1	 	0.06	 	
Savings	 	4,465.0	 	14.7	 	0.33	 	4,046.7	 	28.1	 	0.69	 	
Time	 	1,088.7	 	13.4	 	1.23	 	1,320.1	 	24.9	 	1.88	 	
Total Interest-Bearing Deposits	 	7,269.5	 	29.2	 	0.40	 	7,114.5	 	54.1	 	0.76	 	
Short-Term Borrowings	 	23.3	 	—	 	0.13	 	20.3	 	—	 	0.11	 	
Securities Sold Under Agreements to Repurchase	 	1,700.2	 	26.0	 	1.53	 	1,257.0	 	25.9	 	2.06	 	
Long-Term Debt	 	61.0	 	3.5	 	5.81	 	100.4	 	5.4	 	5.43	 	
Total Interest-Bearing Liabilities	 	9,054.0	 	58.7	 	0.65	 	8,492.2	 	85.4	 	1.01	 	
Net Interest Income	 	 	 	$	407.5	 	 	 	 	 	$	413.5	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.25	%	 	 	 	 	3.48	%	
Net Interest Margin	 	 	 	 	 	3.41	%	 	 	 	 	3.72	%	
Noninterest-Bearing Demand Deposits	 	2,239.6	 	 	 	 	 	1,993.9	 	 	 	 	 	
Other Liabilities	 	381.4	 	 	 	 	 	420.1	 	 	 	 	 	
Shareholders’ Equity	 	1,012.7	 	 	 	 	 	877.2	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	12,687.7	 	 	 	 	 	$	11,783.4	 	 	 	 	 	

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 $975,000 and 1,137,000 for the years ended December 31, 2010 and 2009, respectively.

 
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable Equivalent Basis	Table 7a	
 
 	 	Three Months Ended December 31, 2010
Compared to September 30, 2010	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	(0.1	)	$	0.1	 	$	—	 	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	2.0	 	(3.2	)	(1.2	)	
Held-to-Maturity	 	(0.1	)	(0.1	)	(0.2	)	
Loans and Leases	 	 	 	 	 	 	 	
Commercial Mortgage	 	0.3	 	(0.2	)	0.1	 	
Commercial Lease Financing	 	(0.1	)	(0.2	)	(0.3	)	
Residential Mortgage	 	—	 	(1.1	)	(1.1	)	
Home Equity	 	(0.3	)	(0.1	)	(0.4	)	
Automobile	 	(0.3	)	(0.1	)	(0.4	)	
Other2	 	(0.2	)	0.1	 	(0.1	)	
Total Loans and Leases	 	(0.6	)	(1.6	)	(2.2	)	
Total Change in Interest Income	 	1.2	 	(4.8	)	(3.6	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Savings	 	0.1	 	(1.0	)	(0.9	)	
Time	 	(0.1	)	(0.1	)	(0.2	)	
Total Interest-Bearing Deposits	 	—	 	(1.1	)	(1.1	)	
Securities Sold Under Agreements to Repurchase	 	0.2	 	(0.5	)	(0.3	)	
Total Change in Interest Expense	 	0.2	 	(1.6	)	(1.4	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	1.0	 	$	(3.2	)	$	(2.2	)	

1   The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume 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  7b	
 
 	 	Three Months Ended December 31, 2010
Compared to December 31, 2009	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	(0.2	)	$	0.1	 	$	(0.1	)	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	11.1	 	(12.9	)	(1.8	)	
Held-to-Maturity	 	(0.5	)	(0.1	)	(0.6	)	
Loans Held for Sale	 	(0.1	)	—	 	(0.1	)	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	(0.7	)	0.2	 	(0.5	)	
Commercial Mortgage	 	0.5	 	(0.2	)	0.3	 	
Construction	 	(0.5	)	0.3	 	(0.2	)	
Commercial Lease Financing	 	(0.6	)	(0.7	)	(1.3	)	
Residential Mortgage	 	(2.0	)	(1.7	)	(3.7	)	
Home Equity	 	(1.4	)	(0.2	)	(1.6	)	
Automobile	 	(1.5	)	(0.3	)	(1.8	)	
Other2	 	(0.7	)	—	 	(0.7	)	
Total Loans and Leases	 	(6.9	)	(2.6	)	(9.5	)	
Total Change in Interest Income	 	3.4	 	(15.5	)	(12.1	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Savings	 	0.1	 	(3.0	)	(2.9	)	
Time	 	(0.5	)	(1.0	)	(1.5	)	
Total Interest-Bearing Deposits	 	(0.4	)	(4.0	)	(4.4	)	
Securities Sold Under Agreements to Repurchase	 	1.3	 	(1.3	)	—	 	
Long-Term Debt	 	(0.8	)	0.3	 	(0.5	)	
Total Change in Interest Expense	 	0.1	 	(5.0	)	(4.9	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	3.3	 	$	(10.5	)	$	(7.2	)	

1   The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume 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	
 
 	 	Year Ended December 31, 2010
Compared to December 31, 2009	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	(0.8	)	$	0.1	 	$	(0.7	)	
Investment Securities	 	 	 	 	 	 	 	
Trading	 	(0.3	)	(0.3	)	(0.6	)	
Available-for-Sale	 	63.7	 	(53.0	)	10.7	 	
Held-to-Maturity	 	(2.4	)	(0.2	)	(2.6	)	
Loans Held for Sale	 	(0.6	)	0.7	 	0.1	 	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	(7.1	)	3.2	 	(3.9	)	
Commercial Mortgage	 	3.0	 	(0.9	)	2.1	 	
Construction	 	(2.2	)	1.3	 	(0.9	)	
Commercial Lease Financing	 	(2.0	)	(0.5	)	(2.5	)	
Residential Mortgage	 	(12.4	)	(5.0	)	(17.4	)	
Home Equity	 	(5.8	)	(0.9	)	(6.7	)	
Automobile	 	(6.0	)	(1.0	)	(7.0	)	
Other2	 	(2.8	)	(0.5	)	(3.3	)	
Total Loans and Leases	 	(35.3	)	(4.3	)	(39.6	)	
Total Change in Interest Income	 	24.3	 	(57.0	)	(32.7	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Savings	 	2.6	 	(16.0	)	(13.4	)	
Time	 	(3.9	)	(7.6	)	(11.5	)	
Total Interest-Bearing Deposits	 	(1.3	)	(23.6	)	(24.9	)	
Securities Sold Under Agreements to Repurchase	 	7.7	 	(7.6	)	0.1	 	
Long-Term Debt	 	(2.3	)	0.4	 	(1.9	)	
Total Change in Interest Expense	 	4.1	 	(30.8	)	(26.7	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	20.2	 	$	(26.2	)	$	(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 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	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands)	 	2010	 	2010	 	2009	 	2010	 	2009	 	
Salaries	 	$	30,350	 	$	30,080	 	$	29,323	 	$	119,515	 	$	119,888	 	
Incentive Compensation	 	5,248	 	3,403	 	5,465	 	15,544	 	17,688	 	
Share-Based Compensation and Cash Grants for the Purchase of Company Stock	 	1,220	 	1,045	 	5,789	 	6,805	 	7,775	 	
Commission Expense	 	2,225	 	1,836	 	1,543	 	6,666	 	7,071	 	
Retirement and Other Benefits	 	3,564	 	4,178	 	4,040	 	15,708	 	16,425	 	
Payroll Taxes	 	2,033	 	2,287	 	1,952	 	10,084	 	9,972	 	
Medical, Dental, and Life Insurance	 	1,018	 	2,263	 	2,482	 	8,242	 	9,001	 	
Separation Expense	 	1,151	 	1,748	 	379	 	3,149	 	748	 	
Total Salaries and Benefits	 	$	46,809	 	$	46,840	 	$	50,973	 	$	185,713	 	$	188,568	 	

 
Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances	Table 9	
 
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands)	 	2010	 	2010	 	2010	 	2010	 	2009	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	772,624	 	$	736,385	 	$	758,851	 	$	782,298	 	$	795,167	 	
Commercial Mortgage	 	863,385	 	817,752	 	816,165	 	834,086	 	841,431	 	
Construction	 	80,325	 	88,671	 	88,823	 	104,349	 	108,395	 	
Lease Financing	 	334,997	 	353,962	 	399,744	 	398,939	 	412,933	 	
Total Commercial	 	2,051,331	 	1,996,770	 	2,063,583	 	2,119,672	 	2,157,926	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	2,094,189	 	2,073,340	 	2,087,380	 	2,138,094	 	2,190,677	 	
Home Equity	 	807,479	 	836,990	 	861,196	 	892,109	 	921,571	 	
Automobile	 	209,008	 	221,265	 	238,671	 	260,472	 	283,937	 	
Other1	 	173,785	 	183,689	 	190,081	 	199,734	 	205,674	 	
Total Consumer	 	3,284,461	 	3,315,284	 	3,377,328	 	3,490,409	 	3,601,859	 	
Total Loans and Leases	 	$	5,335,792	 	$	5,312,054	 	$	5,440,911	 	$	5,610,081	 	$	5,759,785	 	
 
Higher Risk Loans Outstanding
 
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands)	 	2010	 	2010	 	2010	 	2010	 	2009	 	
Residential Home Building2	 	$	14,964	 	$	18,444	 	$	18,993	 	$	29,475	 	$	31,067	 	
Residential Land Loans3	 	23,745	 	28,149	 	30,262	 	33,514	 	37,873	 	
Home Equity Loans4	 	23,179	 	23,957	 	25,055	 	24,595	 	28,076	 	
Air Transportation5	 	37,879	 	38,611	 	39,165	 	39,743	 	50,426	 	
Total Higher Risk Loans	 	$	99,767	 	$	109,161	 	$	113,475	 	$	127,327	 	$	147,442	 	

1  Comprised of other revolving credit, installment, and lease financing.
2  Residential home building loans were $34.1 million as of December 31, 2010. Higher risk loans within this segment are defined as those loans with a well-defined weakness or weaknesses that jeopardizes the orderly repayment of the loan.
3  We consider all of our residential land loans, which are consumer loans secured by unimproved lots, to be of higher risk due to the volatility in the value of the underlying collateral.
4  Higher risk home equity loans are defined as those loans originated in 2005 or later, with current monitoring credit scores below 600, and with original loan-to-value ratios greater than 70%.
5  We consider all of our air transportation leases to be of higher risk due to the weak financial profile of the industry.
 
Deposits
 
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands)	 	2010	 	2010	 	2010	 	2010 6	 	2009 6	 	
Consumer	 	$	5,082,802	 	$	4,976,317	 	$	4,925,579	 	$	4,940,576	 	$	4,926,567	 	
Commercial	 	4,292,108	 	4,053,306	 	4,036,679	 	4,126,287	 	4,115,286	 	
Public and Other	 	514,085	 	572,839	 	362,401	 	427,221	 	367,823	 	
Total Deposits	 	$	9,888,995	 	$	9,602,462	 	$	9,324,659	 	$	9,494,084	 	$	9,409,676	 	

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

 
Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More	Table 10	
 
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands)	 	2010	 	2010	 	2010	 	2010	 	2009	 	
Non-Performing Assets1	 	 	 	 	 	 	 	 	 	 	 	
Non-Accrual Loans and Leases	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	1,642	 	$	1,287	 	$	741	 	$	3,342	 	$	6,646	 	
Commercial Mortgage	 	3,503	 	5,071	 	3,476	 	1,662	 	1,167	 	
Construction	 	288	 	3,569	 	5,640	 	7,297	 	8,154	 	
Lease Financing	 	19	 	117	 	63	 	73	 	631	 	
Total Commercial	 	5,452	 	10,044	 	9,920	 	12,374	 	16,598	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	28,152	 	26,917	 	27,491	 	23,214	 	19,893	 	
Home Equity	 	2,254	 	2,303	 	2,638	 	2,844	 	5,153	 	
Other2	 	—	 	—	 	—	 	—	 	550	 	
Total Consumer	 	30,406	 	29,220	 	30,129	 	26,058	 	25,596	 	
Total Non-Accrual Loans and Leases	 	35,858	 	39,264	 	40,049	 	38,432	 	42,194	 	
Non-Accrual Loans Held for Sale	 	—	 	—	 	—	 	—	 	3,005	 	
Foreclosed Real Estate	 	1,928	 	5,910	 	3,192	 	3,192	 	3,132	 	
Total Non-Performing Assets	 	$	37,786	 	$	45,174	 	$	43,241	 	$	41,624	 	$	48,331	 	
 
Accruing Loans and Leases Past Due 90 Days or More	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	—	 	$	62	 	$	—	 	$	2,192	 	$	623	 	
Construction	 	—	 	—	 	—	 	2,170	 	—	 	
Lease Financing	 	—	 	—	 	—	 	—	 	120	 	
Total Commercial	 	—	 	62	 	—	 	4,362	 	743	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	5,399	 	8,031	 	9,019	 	8,136	 	8,979	 	
Home Equity	 	1,067	 	1,246	 	2,256	 	1,608	 	2,210	 	
Automobile	 	410	 	348	 	464	 	571	 	875	 	
Other2	 	707	 	857	 	1,161	 	1,345	 	886	 	
Total Consumer	 	7,583	 	10,482	 	12,900	 	11,660	 	12,950	 	
Total Accruing Loans and Leases Past Due 90 Days or More	 	$	7,583	 	$	10,544	 	$	12,900	 	$	16,022	 	$	13,693	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Loans and Leases	 	$	5,335,792	 	$	5,312,054	 	$	5,440,911	 	$	5,610,081	 	$	5,759,785	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	 	0.67	%	0.74	%	0.74	%	0.69	%	0.73	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets to Total Loans and Leases, Loans Held for Sale, and Foreclosed Real Estate	 	0.71	%	0.85	%	0.79	%	0.74	%	0.84	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases, Commercial Loans Held for Sale, and Commercial Foreclosed Real Estate	 	0.31	%	0.75	%	0.62	%	0.72	%	1.03	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate	 	0.95	%	0.91	%	0.90	%	0.76	%	0.72	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases, Loans Held for Sale, and Foreclosed Real Estate	 	0.85	%	1.04	%	1.03	%	1.02	%	1.07	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Quarter to Quarter Changes in Non-Performing Assets 1	 	 	 	 	 	 	 	 	 	 	 	
Balance at Beginning of Quarter	 	$	45,174	 	$	43,241	 	$	41,624	 	$	48,331	 	$	48,536	 	
Additions	 	8,175	 	10,606	 	10,761	 	9,533	 	14,874	 	
Reductions	 	 	 	 	 	 	 	 	 	 	 	
Payments	 	(5,019	)	(3,432	)	(4,414	)	(5,689	)	(4,128	)	
Return to Accrual Status	 	(1,250	)	(964	)	—	 	(3,505	)	(1,818	)	
Transfer to Foreclosed Real Estate	 	(1,133	)	(2,070	)	—	 	—	 	—	 	
Sales of Foreclosed Real Estate	 	(5,427	)	(700	)	—	 	—	 	(38	)	
Charge-offs/Write-downs	 	(2,734	)	(1,507	)	(4,730	)	(7,046	)	(9,095	)	
Total Reductions	 	(15,563	)	(8,673	)	(9,144	)	(16,240	)	(15,079	)	
Balance at End of Quarter	 	$	37,786	 	$	45,174	 	$	43,241	 	$	41,624	 	$	48,331	 	

1  Excluded from non-performing assets were contractually binding non-accrual loans held for sale of $4.2 million as of December 31, 2009.
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	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands)	 	2010	 	2010	 	2009	 	2010	 	2009	 	
Balance at Beginning of Period	 	$	152,777	 	$	152,777	 	$	148,077	 	$	149,077	 	$	128,667	 	
Loans and Leases Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(6,528	)	(7,635	)	(3,148	)	(21,125	)	(26,641	)	
Commercial Mortgage	 	(745	)	—	 	—	 	(2,048	)	(2,092	)	
Construction	 	—	 	—	 	(4,515	)	(2,274	)	(10,360	)	
Lease Financing	 	(95	)	(108	)	(9,409	)	(500	)	(14,022	)	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	(3,182	)	(1,325	)	(2,697	)	(12,139	)	(7,768	)	
Home Equity	 	(1,859	)	(2,871	)	(3,489	)	(15,052	)	(12,722	)	
Automobile	 	(1,116	)	(1,530	)	(2,209	)	(6,425	)	(9,903	)	
Other1	 	(2,137	)	(2,826	)	(2,981	)	(10,315	)	(13,233	)	
Total Loans and Leases Charged-Off	 	(15,662	)	(16,295	)	(28,448	)	(69,878	)	(96,741	)	
Recoveries on Loans and Leases Previously Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	424	 	433	 	189	 	2,082	 	1,211	 	
Commercial Mortgage	 	44	 	—	 	45	 	68	 	45	 	
Construction	 	7,321	 	—	 	476	 	7,321	 	476	 	
Lease Financing	 	118	 	28	 	50	 	158	 	131	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	190	 	696	 	340	 	1,544	 	1,059	 	
Home Equity	 	967	 	333	 	125	 	1,597	 	364	 	
Automobile	 	727	 	822	 	842	 	3,128	 	3,153	 	
Other1	 	593	 	624	 	580	 	2,393	 	2,584	 	
Total Recoveries on Loans and Leases Previously Charged-Off	 	10,384	 	2,936	 	2,647	 	18,291	 	9,023	 	
Net Loans and Leases Charged-Off	 	(5,278	)	(13,359	)	(25,801	)	(51,587	)	(87,718	)	
Provision for Credit Losses	 	5,278	 	13,359	 	26,801	 	55,287	 	107,878	 	
Provision for Unfunded Commitments	 	—	 	—	 	—	 	—	 	250	 	
Balance at End of Period2	 	$	152,777	 	$	152,777	 	$	149,077	 	$	152,777	 	$	149,077	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Components	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	147,358	 	$	147,358	 	$	143,658	 	$	147,358	 	$	143,658	 	
Reserve for Unfunded Commitments	 	5,419	 	5,419	 	5,419	 	5,419	 	5,419	 	
Total Reserve for Credit Losses	 	$	152,777	 	$	152,777	 	$	149,077	 	$	152,777	 	$	149,077	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases Outstanding	 	$	5,317,815	 	$	5,368,177	 	$	5,847,820	 	$	5,472,534	 	$	6,144,976	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)	 	0.39	%	0.99	%	1.75	%	0.94	%	1.43	%	
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding	 	2.76	%	2.77	%	2.49	%	2.76	%	2.49	%	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Business Segments Selected Financial Information	 	Table 12a	
 
 	 	Retail	 	Commercial	 	Investment	 	Treasury	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	and Other	 	Total	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended December 31, 2010	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	44,388	 	$	34,333	 	$	3,985	 	$	13,567	 	$	96,273	 	
Provision for Credit Losses	 	6,861	 	(1,383	)	(199	)	(1	)	5,278	 	
Net Interest Income After Provision for Credit Losses	 	37,527	 	35,716	 	4,184	 	13,568	 	90,995	 	
Noninterest Income	 	23,537	 	9,843	 	14,134	 	3,963	 	51,477	 	
Noninterest Expense	 	(46,461	)	(24,015	)	(15,017	)	(3,229	)	(88,722	)	
Income Before Provision for Income Taxes	 	14,603	 	21,544	 	3,301	 	14,302	 	53,750	 	
Provision for Income Taxes	 	(5,403	)	(7,531	)	(1,221	)	983	 	(13,172	)	
Net Income	 	9,200	 	14,013	 	2,080	 	15,285	 	40,578	 	
Total Assets as of December 31, 2010	 	$	3,077,795	 	$	2,244,883	 	$	196,466	 	$	7,607,643	 	$	13,126,787	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended December 31, 2009 1	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	50,958	 	$	40,008	 	$	4,349	 	$	8,219	 	$	103,534	 	
Provision for Credit Losses	 	11,886	 	14,439	 	489	 	(13	)	26,801	 	
Net Interest Income After Provision for Credit Losses	 	39,072	 	25,569	 	3,860	 	8,232	 	76,733	 	
Noninterest Income	 	25,103	 	12,249	 	14,646	 	28,813	 	80,811	 	
Noninterest Expense	 	(44,590	)	(24,943	)	(16,775	)	(2,212	)	(88,520	)	
Income Before Provision for Income Taxes	 	19,585	 	12,875	 	1,731	 	34,833	 	69,024	 	
Provision for Income Taxes	 	(7,279	)	(4,534	)	(640	)	(16,055	)	(28,508	)	
Net Income	 	12,306	 	8,341	 	1,091	 	18,778	 	40,516	 	
Total Assets as of December 31, 20091	 	$	3,340,790	 	$	2,464,157	 	$	212,145	 	$	6,397,735	 	$	12,414,827	 	

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	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Year Ended December 31, 2010	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	188,700	 	$	147,014	 	$	16,567	 	$	54,199	 	$	406,480	 	
Provision for Credit Losses	 	38,377	 	17,085	 	(129	)	(46	)	55,287	 	
Net Interest Income After Provision for Credit Losses	 	150,323	 	129,929	 	16,696	 	54,245	 	351,193	 	
Noninterest Income	 	100,859	 	41,304	 	59,948	 	53,147	 	255,258	 	
Noninterest Expense	 	(175,621	)	(96,225	)	(58,467	)	(15,923	)	(346,236	)	
Income Before Provision for Income Taxes	 	75,561	 	75,008	 	18,177	 	91,469	 	260,215	 	
Provision for Income Taxes	 	(27,958	)	(22,272	)	(6,726	)	(19,317	)	(76,273	)	
Net Income	 	47,603	 	52,736	 	11,451	 	72,152	 	183,942	 	
Total Assets as of December 31, 2010	 	$	3,077,795	 	$	2,244,883	 	$	196,466	 	$	7,607,643	 	$	13,126,787	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Year Ended December 31, 20091	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	215,476	 	$	161,353	 	$	16,942	 	$	18,563	 	$	412,334	 	
Provision for Credit Losses	 	56,807	 	49,308	 	2,073	 	(310	)	107,878	 	
Net Interest Income After Provision for Credit Losses	 	158,669	 	112,045	 	14,869	 	18,873	 	304,456	 	
Noninterest Income	 	103,048	 	68,098	 	57,732	 	38,930	 	267,808	 	
Noninterest Expense	 	(173,969	)	(104,182	)	(64,085	)	(7,788	)	(350,024	)	
Income Before Provision for Income Taxes	 	87,748	 	75,961	 	8,516	 	50,015	 	222,240	 	
Provision for Income Taxes	 	(32,548	)	(30,671	)	(3,151	)	(11,837	)	(78,207	)	
Net Income	 	55,200	 	45,290	 	5,365	 	38,178	 	144,033	 	
Total Assets as of December 31, 20091	 	$	3,340,790	 	$	2,464,157	 	$	212,145	 	$	6,397,735	 	$	12,414,827	 	

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	 	
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands, except per share amounts)	 	2010	 	2010	 	2010	 	2010	 	2009	 	
Quarterly Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	67,915	 	$	70,198	 	$	71,997	 	$	77,271	 	$	77,457	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	39,546	 	40,775	 	44,989	 	43,841	 	41,369	 	
Held-to-Maturity	 	1,388	 	1,553	 	1,700	 	1,863	 	2,018	 	
Deposits	 	7	 	5	 	3	 	13	 	2	 	
Funds Sold	 	160	 	211	 	396	 	309	 	353	 	
Other	 	279	 	278	 	277	 	277	 	277	 	
Total Interest Income	 	109,295	 	113,020	 	119,362	 	123,574	 	121,476	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	5,918	 	7,041	 	7,930	 	8,307	 	10,317	 	
Securities Sold Under Agreements to Repurchase	 	6,425	 	6,670	 	6,472	 	6,429	 	6,411	 	
Funds Purchased	 	7	 	10	 	6	 	7	 	7	 	
Long-Term Debt	 	672	 	673	 	1,026	 	1,178	 	1,207	 	
Total Interest Expense	 	13,022	 	14,394	 	15,434	 	15,921	 	17,942	 	
Net Interest Income	 	96,273	 	98,626	 	103,928	 	107,653	 	103,534	 	
Provision for Credit Losses	 	5,278	 	13,359	 	15,939	 	20,711	 	26,801	 	
Net Interest Income After Provision for Credit Losses	 	90,995	 	85,267	 	87,989	 	86,942	 	76,733	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	11,190	 	10,534	 	11,457	 	11,708	 	11,746	 	
Mortgage Banking	 	4,549	 	6,811	 	3,752	 	3,464	 	4,218	 	
Service Charges on Deposit Accounts	 	11,632	 	12,737	 	14,856	 	13,814	 	14,160	 	
Fees, Exchange, and Other Service Charges	 	15,196	 	15,500	 	15,806	 	14,504	 	14,935	 	
Investment Securities Gains (Losses), Net	 	(1	)	7,877	 	14,951	 	20,021	 	25,707	 	
Insurance	 	2,309	 	2,646	 	2,291	 	2,715	 	2,326	 	
Other	 	6,602	 	7,020	 	5,761	 	5,556	 	7,719	 	
Total Noninterest Income	 	51,477	 	63,125	 	68,874	 	71,782	 	80,811	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	46,809	 	46,840	 	47,500	 	44,564	 	50,973	 	
Net Occupancy	 	10,504	 	10,186	 	10,154	 	10,144	 	10,367	 	
Net Equipment	 	5,902	 	4,545	 	4,366	 	4,558	 	4,393	 	
Professional Fees	 	2,116	 	905	 	2,091	 	1,992	 	3,243	 	
FDIC Insurance	 	3,198	 	3,159	 	3,107	 	3,100	 	3,251	 	
Other	 	20,193	 	24,255	 	18,700	 	17,348	 	16,293	 	
Total Noninterest Expense	 	88,722	 	89,890	 	85,918	 	81,706	 	88,520	 	
Income Before Provision for Income Taxes	 	53,750	 	58,502	 	70,945	 	77,018	 	69,024	 	
Provision for Income Taxes	 	13,172	 	14,438	 	24,381	 	24,282	 	28,508	 	
Net Income	 	$	40,578	 	$	44,064	 	$	46,564	 	$	52,736	 	$	40,516	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Basic Earnings Per Share	 	$	0.84	 	$	0.91	 	$	0.97	 	$	1.10	 	$	0.85	 	
Diluted Earnings Per Share	 	$	0.84	 	$	0.91	 	$	0.96	 	$	1.09	 	$	0.84	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	$	5,335,792	 	$	5,312,054	 	$	5,440,911	 	$	5,610,081	 	$	5,759,785	 	
Total Assets	 	13,126,787	 	12,716,603	 	12,855,845	 	12,435,670	 	12,414,827	 	
Total Deposits	 	9,888,995	 	9,602,462	 	9,324,659	 	9,494,084	 	9,409,676	 	
Total Shareholders’ Equity	 	1,011,133	 	1,039,561	 	1,013,011	 	939,372	 	895,973	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.24	%	1.37	%	1.48	%	1.73	%	1.31	%	
Return on Average Shareholders’ Equity	 	15.08	 	16.64	 	19.01	 	22.54	 	16.91	 	
Efficiency Ratio1	 	60.05	 	55.57	 	49.72	 	45.54	 	48.02	 	
Net Interest Margin2	 	3.15	 	3.27	 	3.51	 	3.72	 	3.57	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Hawaii Economic Trends	 	Table 14	
 
 	 	Eleven Months Ended	 	Year Ended	 	
($ in millions; jobs in thousands)	 	November 30, 2010	 	December 31, 2009	 	December 31, 2008	 	
Hawaii Economic Trends	 	 	 	 	 	 	 	 	 	 	 	 	 	
State General Fund Revenues1	 	$	3,947.6	 	6.8	%	$	4,018.2	 	(12.8	)%	$	4,608.6	 	(1.6	)%	
General Excise and Use Tax Revenue 1	 	$	2,187.1	 	2.9	 	$	2,296.3	 	(10.6	)%	$	2,567.8	 	(2.1	)%	
Jobs, seasonally adjusted2	 	589.6	 	(0.5	)	586.1	 	(3.2	)	605.6	 	(3.5	)	
 
 	 	November 30,	 	December 31,	 	September 30,	 	December 31,	 	
(annual percentage, except 2009 and 2010)	 	2010	 	2009	 	2009	 	2008	 	2007	 	
Unemployment3	 	 	 	 	 	 	 	 	 	 	 	
Statewide, seasonally adjusted	 	6.4	%	6.8	%	7.0	%	5.6	%	3.0	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Oahu	 	5.4	 	5.3	 	6.2	 	4.3	 	2.5	 	
Island of Hawaii	 	9.7	 	9.4	 	10.4	 	7.3	 	3.5	 	
Maui	 	8.1	 	8.7	 	9.3	 	6.8	 	3.4	 	
Kauai	 	8.7	 	8.7	 	9.2	 	7.7	 	3.1	 	
 
 	 	December 31,	 	
(percentage change, except months of inventory)	 	2010	 	2009	 	
Housing Trends (Single Family Oahu)4	 	 	 	 	 	
Median Home Price	 	3.1	%	(7.3	)%	
Home Sales Volume (units)	 	13.4	%	(1.8	)%	
Months of Inventory	 	6.0	 	6.8	 	
 
 	 	Monthly Visitor Arrivals,	 	Percentage Change	 	
(in thousands)	 	Seasonally Adjusted	 	from Previous Month	 	
Tourism2	 	 	 	 	 	
November 30, 2010	 	615.5	 	2.1	%	
October 31, 2010	 	603.0	 	1.2	 	
September 30, 2010	 	596.1	 	(1.1	)	
August 31, 2010	 	603.0	 	0.8	 	
July 31, 2010	 	598.4	 	1.5	 	
June 30, 2010	 	589.6	 	1.8	 	
May 31, 2010	 	579.3	 	5.0	 	
April 30, 2010	 	551.7	 	(2.8	)	
March 31, 2010	 	567.7	 	4.7	 	
February 28, 2010	 	542.2	 	(0.6	)	
January 31, 2010	 	545.5	 	1.1	 	
December 31, 2009	 	539.5	 	1.5	 	
November 30, 2009	 	531.5	 	(0.4	)	
October 31, 2009	 	533.6	 	(3.5	)	
September 30, 2009	 	552.8	 	3.5	 	
August 31, 2009	 	534.1	 	(1.0	)	
July 31, 2009	 	539.5	 	5.3	 	
June 30, 2009	 	512.4	 	(5.7	)	
May 31, 2009	 	543.6	 	(0.6	)	
April 30, 2009	 	546.8	 	6.7	 	
March 31, 2009	 	512.7	 	(4.8	)	
February 28, 2009	 	538.4	 	0.5	 	
January 31, 2009	 	535.5	 	2.6	 	

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.
Note:  Certain prior period seasonally adjusted information has been revised.