U N I T E D   S T A T E S
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

FORM 8-K
 
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
 	Date of Report	 	
 	(Date of earliest event reported)	 	January 30, 2013	
 
BANK OF HAWAII CORPORATION
--------------------------------------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
 
 	Delaware	 	1-6887	 	99-0148992	
 	--------------------	 	--------------	 	------------------	
 	(State of Incorporation)	 	(Commission	 	(IRS Employer	
 	 	 	File Number)	 	Identification No.)	

 	130 Merchant Street, Honolulu, Hawaii	 	96813	
 	-----------------------------------------------	 	------------	
 	(Address of principal executive offices)	 	(Zip Code)	
 
 	(Registrant’s telephone number,	 	 	
 	including area code)	 	(888) 643-3888	
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
Item 2.02.                             Results of Operations and Financial Condition.
 
On January 30, 2013, Bank of Hawaii Corporation announced its results of operations for the quarter ended December 31, 2012.  The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and incorporated herein by reference.
 
Item 5.02(e).   Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
 
On January 25, 2013, the Human Resources and Compensation Committee of the Board of Directors of the Company (the “Committee”) granted the following restricted stock awards under the 2004 Stock and Incentive Compensation Plan (the “Plan”) to Peter S. Ho, Chairman, CEO and President, Kent T. Lucien, Vice Chairman and Chief Financial Officer, Mark A. Rossi, Vice Chairman, Chief Administrative Officer, General Counsel and Corporate Secretary, and Mary E. Sellers, Vice Chairman and Chief Risk Officer:
 
GRANTEE	 	NUMBER OF SHARES	 	
Peter S. Ho	 	31,580	 	
Kent T. Lucien	 	10,530	 	
Mark A. Rossi	 	10,530	 	
Mary E. Sellers	 	10,530	 	
 
The referenced restricted stock awards were made pursuant to individual Restricted Stock Grant Agreements, which provide for the restricted stock to vest in one-third blocks on March 3, 2014,  January 30, 2015 and January 29, 2016, provided that certain conditions of employment and Company performance objectives relating to the Company’s Net Income, Return on Assets, Return on Equity or Stock Price to Book Ratio, as compared to designated Peer Group performance, are achieved and certified by the Committee. Vesting is accelerated upon a change of control of the Company or upon the holder’s death or termination of employment with the Company due to disability.  A copy of the form 2013 Restricted Stock Grant Agreement referenced above is attached hereto as Exhibit 10.1 and incorporated herein by reference.
 
On January 25, 2013, the Committee approved increases to 2013 base salary, effective April 1, 2013, for Peter S. Ho, Chairman, CEO and President in the amount of $150,000, for a total base salary of $900,000; Wayne Y. Hamano, Vice Chairman and Chief Commercial Officer in the amount of $25,000, for a total base salary of $350,000;  Kent T. Lucien, Vice Chairman and Chief Financial Officer in the amount of $25,000, for a total base salary of $450,000; Mark A. Rossi, Vice Chairman, Chief Administrative Officer, General Counsel and Corporate Secretary in the amount of $25,000, for a total base salary of $450,000; and Mary E. Sellers, Vice Chairman and Chief Risk Officer in the amount of $50,000, for a total base salary of $425,000.

 
Item 9.01.                             Financial Statements and Exhibits.
 
(d)                             Exhibits
 
Exhibit No.
 
10.1                    2013 Restricted Stock Grant Agreement
99.1                    January 30, 2013 Press Release: Bank of Hawaii Corporation 2012 Financial Results.  Any internet addresses provided in this release are for informational purposes only and are not intended to be hyperlinks.  Furnished herewith.
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: January 30, 2013	BANK OF HAWAII CORPORATION	

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

Exhibit 10.1
 
BANK OF HAWAII CORPORATION
2004 STOCK AND INCENTIVE COMPENSATION PLAN
 
2013 RESTRICTED STOCK GRANT AGREEMENT
 
This Restricted Stock Grant Agreement (“Agreement”) dated January 25, 2013 (“Grant Date”), between Bank of Hawaii Corporation, a Delaware corporation (“Company”), with its registered office at 130 Merchant Street, Honolulu, Hawaii 96813, and the executive of the Company or subsidiary of the Company (“Grantee”) who is specified in the “Notice of 2013 Restricted Stock Grant” (“Notice”) attached hereto.
 
1.         Grant of Restricted Shares.  Effective as of the Grant Date, the Human Resources and Compensation Committee of the Company’s Board of Directors (“Committee”) has granted to Grantee the number of shares of the Company’s common stock (“Restricted Shares”) as specified in the Notice pursuant to the Bank of Hawaii Corporation 2004 Stock and Incentive Compensation Plan, as amended (“Plan”).  The grant of Restricted Shares evidenced by this Agreement is made subject to the terms and conditions of the Plan and of this Agreement.  In case of conflict between the provisions of the Plan and the provisions of this Agreement, the provisions of the Plan shall control.  Certain terms defined in the Plan are used in this Agreement with the meanings given to them in the Plan.
 
2.         Restrictions During Period of Restriction.  Restricted Shares shall be subject to forfeiture by Grantee until the “Restriction Period” terminates as to such Restricted Shares and the Restricted Shares shall vest in Grantee (up to the maximum shares granted under this Agreement) in accordance with the terms of the Plan (including, but not limited to, conditions and restrictions imposed pursuant to Section 8.4 of the Plan) and this Agreement.
 
a.         Restriction Period.  For purposes of this Agreement and with respect to a designated block of Restricted Shares granted under this Agreement, the term “Restriction Period” shall mean the period that commences on the Grant Date and terminates following achievement of the service and financial performance objectives applicable to the block of Restricted Shares as described below.
 
(1)        Component Conditioned on Service
 
One-third of the total Restricted Shares granted hereunder shall be subject to the termination of the Restriction Period under this Section 2.a(1) that is conditioned on service and the achievement of positive net income (which one-third block is referred to hereunder as the “Service Shares”) as follows:
 
(a)        On March 3, 2014, with respect to one-third of the Service Shares provided that (I) Grantee remains an Employee through March 3, 2014, and (II) the Committee shall have certified with respect to the fiscal year ending December 31, 2013, that the Company has achieved positive net income as publicly announced by the Company in its earnings release for that period (“Net Income Performance Objective”).

 
(b)        On January 30, 2015, with respect to one-third of the Service Shares provided that (I) Grantee remains an Employee through January 30, 2015, and (II) the Net Income Performance Objective is satisfied.
 
(c)        On January 29, 2016, with respect to one-third of the Service Shares provided that (I) Grantee remains an Employee through January 29, 2016, and (II) the Net Income Performance Objective is satisfied.
 
(2)        Component Conditioned on First-Tier Performance
 
One-third of the total Restricted Shares granted hereunder shall be subject to the termination of the Restriction Period under this Section 2.a(2) that is conditioned on service and the achievement of financial performance criteria at no less than the second-tier peer group level (which one-third block is referred to hereunder as the “First-Tier Shares”) as follows:
 
(a)        On March 3, 2014 with respect to one-third of the First-Tier Shares provided that (I) Grantee remains an Employee through March 3, 2014, and (II) the Committee shall have certified with respect to the fiscal year ending December 31, 2013, that the Company’s “Return on Assets”, or “Return on Equity”, or “Stock Price to Book Ratio v. Peers” falls within the top two quartiles of the 2013 Regional Bank Index or the 2013 U.S. Bank Index that has been designated by the Committee on or before the Grant Date and as the same may be revised from time to time to delete organizations that cease to be publicly-held (“First-Tier Performance Objective”).
 
For purposes of this Agreement the terms “Return on Assets”, “Return on Equity”, and “Stock Price to Book Ratio vs. Peers” shall mean such terms as determined and reported with respect to the Company for purposes of placement under designated 2013 Regional Bank Index and the 2013 U.S. Bank Index.
 
(b)        On January 30, 2015, with respect to one-third of the First-Tier Shares provided that (I) Grantee remains an Employee through January 30, 2015, and (II) the First-Tier Performance Objective is satisfied.
 
(c)        On January 29, 2016, with respect to one-third of the First-Tier Shares provided that (I) Grantee remains an Employee through January 29, 2016 and (II) the First-Tier Performance Objective is satisfied.
 
(3)        Component Conditioned on Second-Tier Performance
 
One-third of the total Restricted Shares granted hereunder shall be subject to the termination of the Restriction Period under this Section 2.a(3) that is conditioned on service and the achievement of financial performance criteria at the first-tier peer group level (which one-third block is referred to hereunder as the “Second-Tier Shares”) as follows:
 
2.

 
(a)        On March 3, 2014, with respect to one-third of the Second-Tier Shares provided that (I) Grantee remains an Employee through March 3, 2014, and (II) the Committee shall have certified with respect to the fiscal year ending December 31, 2013, that the Company’s “Return on Assets”, or “Return on Equity”, or “Stock Price to Book Ratio vs. Peers” falls within the top quartile of the 2013 Regional Bank Index or the 2013 U.S. Bank Index that has been designated by the Committee on or before the Grant Date and as the same may be revised from time to time to delete organizations that cease to be publicly-held (“Second-Tier Performance Objective”).
 
(b)        On January 30, 2015, with respect to one-third of the Second-Tier Shares provided that (I) Grantee remains an Employee through January 30, 2015, and (II) the Second-Tier Performance Objective is satisfied.
 
(c)        On January 29, 2016, with respect to one-third of the Second-Tier Shares provided that (I) Grantee remains an Employee through January 29, 2016, and (II) the Second-Tier Performance Objective is satisfied.
 
b.         Committee Determinations. This Agreement shall be interpreted in a manner consistent with the requirements of the performance-based compensation exception under Code Section 162(m).  The Committee shall endeavor to certify whether the service and financial performance objectives described in Section 2.a of this Agreement have been satisfied on or prior to the scheduled time of vesting as specified in Section 2.a.  In the event that the Committee has not done so, it shall make such determination as soon thereafter as possible and, if the satisfaction of the service and financial performance objectives have been certified, the Restricted Shares subject to vesting shall vest at the time of the making of such certification.
 
c.         Other Termination of Restriction Period.  The Restriction Period shall terminate and all theretofore unvested and unforfeited Restricted Shares shall vest in Grantee upon the earliest to occur of the following:  (i) the death of Grantee; (ii) the Grantee is no longer an Employee due to “disability” within the meaning of that term under Code Section 409A and the regulations promulgated thereunder; or (iii) the occurrence of a “Change in Control” in accordance with Article 15 of the Plan.
 
d.         Forfeiture of Unvested Restricted Shares.  Each block of Restricted Shares that remains unvested and unforfeited shall be forfeited and transferred to the Company upon the first to occur of: (i) except as provided in Section 2.c of this Agreement, Grantee’s ceasing to be an Employee for any reason, whether voluntary or involuntary; and (ii) the making of the determination that the financial performance objective applicable to the block of Restricted Shares has not been satisfied for such block under Section 2.a of this Agreement.  Grantee’s employment shall not be treated as terminated in the case of a transfer of employment within the Company and its subsidiaries or in the case of sick leave and other approved leaves of absence.
 
3.

 
e.         Transfer Restriction.  During the Period of Restriction for a particular Restricted Share, such Restricted Share shall be subject to the restrictions on transferability set forth in Section 8.3 of the Plan.
 
3.         Issuance of Shares; Registration; Withholding Taxes.  Restricted Shares shall be issued in Grantee’s name, shall bear the restrictive legend specified in Section 8.5 of the Plan (and such other restrictive legends as are required or deemed advisable by the Company under the provisions of any applicable law), and shall be held by the Company until all restrictions lapse or such shares are forfeited as provided herein.  The Restricted Shares as to which the Restriction Period has terminated shall be delivered to Grantee upon such termination.  The Company may postpone the issuance or delivery of the Shares until (a) the completion of registration or other qualification of such Shares or transaction under any state or federal law, rule or regulation, or any listing on any securities exchange, as the Company shall determine to be necessary or desirable; (b) the receipt by the Company of such written representations or other documentation as the Company deems necessary to establish compliance with all applicable laws, rules and regulations, including applicable federal and state securities laws and listing requirements, if any; and (c) the payment to the Company in accordance with Article 17 of the Plan of any amount required by the Company to satisfy any federal, state or other governmental withholding tax requirements related to the issuance or delivery of the Shares.  Grantee shall comply with any and all legal requirements relating to Grantee’s resale or other disposition of any Shares acquired under this Agreement.
 
4.         Share Adjustments.  The number and kind of Restricted Shares or other property subject to this Agreement shall be subject to adjustment in accordance with Section 4.2 of the Plan.
 
5.         Rights as Shareholder.  Unless otherwise provided herein, Grantee shall be entitled to all of the rights of a shareholder with respect to the Restricted Shares, including the right to vote such Shares and to receive dividends and other distributions (not including share adjustments as described in Section 4 above) payable with respect to such Shares from and after the Grant Date.  Grantee’s rights as a shareholder shall terminate with respect to any Restricted Shares forfeited by Grantee.
 
6.         Amendment.  This Agreement may be amended by the Committee at any time based on its determination that the amendment is necessary or advisable in light of any addition to, or change in, the Code or regulations issued thereunder or any federal or state securities law or other law or regulation, or the Plan, or based on any discretionary authority of the Committee under the Plan.  Unless necessary or advisable due to a change in law, any amendment to this Agreement which has a material adverse effect on the interest of Grantee under this Agreement shall be adopted only with the consent of Grantee.
 
7.         Section 83(b) Election.  Grantee shall promptly deliver to the Company a copy of any election filed by Grantee in respect of the Restricted Shares pursuant to Code Section 83(b).
 
4.

 
8.         Notices.  Any notice or other communication made in connection with this Agreement shall be deemed duly given when delivered in person or mailed by certified or registered mail, return receipt requested, to Grantee at Grantee’s address shown on Company records or such other address designated by Grantee by similar notice, or to the Company at its then principal office, to the attention of the Corporate Secretary of the Company.  Furthermore, such notice or other communication shall be deemed duly given when transmitted electronically to Grantee at Grantee’s electronic mail address shown on the Company records or, to the extent that Grantee is an active employee, through the Company’s intranet.
 
9.         Miscellaneous.  This Agreement and the Plan set forth the final and entire agreement between the parties with respect to the subject matter hereof, which shall be governed by and shall be construed in accordance with the laws of the State of Hawaii, to the extent not governed by federal law.  This Agreement shall bind and benefit Grantee, the heirs, distributees and personal representative of Grantee, and the Company and its successors and assigns.  This Agreement may be signed in counterparts, each of which shall be deemed an original, and said counterparts shall together constitute one and the same instrument.  Capitalized terms not herein defined shall have the meanings prescribed to them under the Plan.
 
BY ACCEPTING THE RESTRICTED SHARES GRANTED UNDER THIS 2013 RESTRICTED STOCK GRANT AGREEMENT, GRANTEE AGREES TO ALL THE TERMS AND CONDITIONS DESCRIBED IN THIS AGREEMENT AND IN THE PLAN.
 
5.

Exhibit 99.1

 
Bank of Hawaii Corporation 2012 Financial Results
 
·          2012 Diluted Earnings Per Share $3.67
 
·          2012 Net Income $166.1 Million
 
·          Diluted Earnings Per Share for the Fourth Quarter of 2012 $0.90
 
·          Net Income for the Fourth Quarter of 2012 $40.3 Million
 
·          Board of Directors Declares Dividend of $0.45 Per Share
 
FOR IMMEDIATE RELEASE
 
HONOLULU, HI (January 30, 2013) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.90 for the fourth quarter of 2012, down from $0.92 per share in the previous quarter, and up from $0.85 per share in the same quarter last year.  Net income for the fourth quarter of 2012 was $40.3 million, compared to net income of $41.2 million in the third quarter of 2012 and $39.2 million in the same quarter last year.
 
Loan and lease balances were $5.9 billion at December 31, 2012, up 5.7 percent compared with December 31, 2011.  Deposit growth remained strong during the quarter, increasing 8.8 percent to $11.5 billion at December 31, 2012.  The allowance for loan and lease losses decreased by $2.1 million from the third quarter to $128.9 million at December 31, 2012 and represents 2.20 percent of outstanding loans and leases.
 
“We are very pleased with the continued stability and strength of our earnings,” said Peter S. Ho, Chairman, President, and CEO.  “During the quarter loan balances increased across most categories and deposits continued to grow.  Credit quality remained solid, our balance sheet and capital ratios are strong, and we maintained our focus on disciplined expense management.”
 
The return on average assets for the fourth quarter of 2012 was 1.19 percent, compared with 1.22 percent in the previous quarter and 1.17 percent in the same quarter last year.  The return on average equity for the fourth quarter of 2012 was 15.47 percent, compared with 16.02 percent in the previous quarter and 15.23 percent in the same quarter last year.  The return on average assets for the full year of 2012 was 1.22 percent, unchanged from 2011.  The return on average equity for the full year of 2012 was 16.23 percent, an increase from the return on average equity of 15.69 percent in 2011.
 
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Bank of Hawaii Corporation 2012 Financial Results	 	Page 2	
 
Financial Highlights
 
Net interest income, on a taxable-equivalent basis, for the fourth quarter of 2012 was $92.7 million, down $3.5 million from net interest income of $96.2 million in the third quarter of 2012 and down $4.5 million from net interest income of $97.2 million in the fourth quarter last year.  Net interest income, on a taxable-equivalent basis, for the full year of 2012 was $386.7 million, a decrease of $5.6 million from net interest income of $392.3 million in 2011.  Analyses of changes in net interest income are included in Tables 8a, 8b and 8c.
 
The net interest margin was 2.87 percent for the fourth quarter of 2012, an 11 basis point decrease from the previous quarter and a 17 basis point decrease from the same quarter last year. The net interest margin for the full year of 2012 was 2.97 percent, a 16 basis point decrease from 3.13 percent in 2011.  The reduction in the net interest margin was largely the result of lower interest rates which resulted in decreased yields on loans and investments.
 
During the fourth and third quarters of 2012, the Company did not record a provision for credit losses.  Net loans and leases charged-off were $2.1 million in the fourth quarter of 2012 and $1.5 million in the third quarter of 2012.  During the fourth quarter of 2011 the provision for credit losses was $2.2 million, or $4.8 million less than net charge-offs.  The provision for credit losses for the full year of 2012 was $1.0 million compared with $12.7 million in 2011.
 
Noninterest income was $53.0 million for the fourth quarter of 2012, up $0.6 million or 1.2 percent compared with noninterest income of $52.4 million in the third quarter of 2012 and up $9.6 million or 22.1 percent compared with noninterest income of $43.4 million in the fourth quarter of 2011.  The increase compared with the prior year quarter was largely due to strong mortgage banking revenue of $11.3 million during the fourth quarter of 2012 compared with $3.4 million in the fourth quarter last year.  Noninterest income for the full year of 2012 was $200.3 million compared with noninterest income of $197.7 million in 2011.
 
Noninterest expense was $83.5 million in the fourth quarter of 2012, down $1.4 million or 1.7 percent from noninterest expense of $84.9 million in the third quarter of 2012, and down $0.9 million or 1.1 percent from noninterest expenses of $84.4 million in the fourth quarter of 2011.  Noninterest expense in the fourth quarter of 2012 included total charges of $1.5 million related to the Company’s previously announced plans to close two branches in American Samoa.  Noninterest expense in the third quarter of 2012 included an increase in profit sharing and incentive accruals of $1.0 million, $1.0 million related to the launch of a new consumer credit card product, and $1.0 million in separation expense. There were no significant noninterest expense items in the fourth quarter of 2011.  Noninterest expense for the full year of 2012 was $334.3 million, down $13.9 million from noninterest expense of $348.2 million in 2011.  Results for 2011 included a second quarter litigation settlement of $9.0 million.
 
The efficiency ratio for the fourth quarter of 2012 was 58.24 percent compared with 58.13 percent in the previous quarter and 60.42 percent in the same quarter last year.  The efficiency ratio for the full year of 2012 was 57.88 percent compared with 59.23 percent during the full year of 2011.
 
The effective tax rate for the fourth quarter of 2012 was 32.67 percent compared with 32.55 percent in the previous quarter and 26.06 percent in the same quarter last year.  The effective tax rate for the full year of 2012 was 31.46 percent compared with 29.49 percent for the full year of 2011.  The effective tax rate for the fourth quarter of 2011 was favorably impacted by the release of tax reserves determined during the quarter.
 
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Bank of Hawaii Corporation 2012 Financial Results	 	Page 3	
 
The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury & Other.  Results are determined based on the Company’s internal financial management reporting process and organizational structure.  Selected financial information for the business segments is included in Tables 13a and 13b.
 
Asset Quality
 
The Company’s overall asset quality in the fourth quarter of 2012 reflects the improving Hawaii economy.  Total non-performing assets decreased to $37.1 million at December 31, 2012 compared with $40.3 million at September 30, 2012 and $40.8 million at December 31, 2011.  As a percentage of total loans and leases, including foreclosed real estate; non-performing assets were 0.63 percent at the end of the fourth quarter of 2012, down from 0.70 percent as of the end of the third quarter and 0.74 percent at the end of the fourth quarter last year.
 
Accruing loans and leases past due 90 days or more were $10.4 million at December 31, 2012, up from $7.5 million at September 30, 2012 and $9.2 million at December 30, 2011.  The increase in accruing loan and leases past due compared with the prior quarter is in residential mortgages and are three loans that are expected to return to current status.  Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $31.8 million at December 31, 2012, up slightly from $31.4 million at September 30, 2012, and down from $33.7 million at December 31, 2011.   Restructured loans are primarily comprised of residential mortgage loans with lowered monthly payments to accommodate the borrowers’ financial needs for a period of time.  More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.
 
Net charge-offs during the fourth quarter of 2012 were $2.1 million or 0.15 percent annualized of total average loans and leases outstanding.  Loan and lease charge-offs of $5.4 million during the quarter were partially offset by recoveries of $3.3 million.  Net charge-offs during the third quarter of 2012 were $1.5 million or 0.10 percent annualized, and were comprised of charge-offs of $5.0 million and recoveries of $3.5 million.  Net charge-offs during the fourth quarter of 2011 were $7.0 million, or 0.51 percent annualized, and were comprised of charge-offs of $9.6 million and recoveries of $2.6 million.  Net charge-offs for the full year of 2012 were $10.7 million, or 0.19 percent of total average loans and leases, down from $21.4 million, or 0.40 percent of total average loans and leases in 2011.
 
The allowance for loan and lease losses was $128.9 million at December 31, 2012, down $2.1 million from the allowance for loan and lease losses of $131.0 million at September 30, 2012 and down $9.7 million from the allowance for loan and lease losses of $138.6 million at December 31, 2011.  The ratio of the allowance for loan and lease losses to total loans and leases was 2.20 percent at December 31, 2012, a decrease of 7 basis points from the previous quarter and 30 basis points from the same quarter last year.  The reserve for unfunded commitments at December 31, 2012 was unchanged from September 30, 2012 and remained at $5.4 million.  Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.
 
Other Financial Highlights
 
Total assets increased to $13.73 billion at December 31, 2012, up $345.9 million from total assets of $13.38 billion at September 30, 2012, and down $118.0 million from total assets of $13.85 billion at December 31, 2011.  Average total assets were $13.52 billion during the fourth quarter of 2012, up $25.7 million from average total assets of $13.49 billion during the third quarter of 2012, and up $158.9 million from average total assets of $13.36 billion during the fourth quarter of 2011.
 
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Bank of Hawaii Corporation 2012 Financial Results	 	Page 4	
 
Total loans and leases grew to $5.85 billion at December 31, 2012, up $72.2 million or 1.2 percent from total loans and leases of $5.78 billion at the end of the previous quarter, and up $316.2 million or 5.7 percent from total loans and leases of $5.54 billion at December 31, 2011.  Average total loans and leases were $5.80 billion during the fourth quarter of 2012, up from $5.72 billion during the previous quarter, and up from $5.42 billion during the same quarter last year.  Loan and lease portfolio balances, including the higher risk loans outstanding, are summarized in Table 10.
 
Deposit generation continued to remain strong during the fourth quarter of 2012, increasing to $11.53 billion at December 31, 2012, up $308.9 million or 2.8 percent from total deposits of $11.22 billion at September 30, 2012, and up $936.9 million or 8.8 percent from total deposits of $10.59 billion at December 31, 2011.  Securities sold under agreements to repurchase were $758.9 million at December 31, 2012, down $59.1 million from $818.1 million at September 30, 2012, and down $1.17 billion from $1.93 billion at December 31, 2011.  Average total deposits were $11.38 billion in the fourth quarter of 2012, higher than average deposits of $11.30 billion during the previous quarter, and up from average deposits of $10.16 billion during the same quarter last year.  Deposit balances are summarized in Tables 7a, 7b, and 10.
 
Long-term debt was $128.1 million at December 31, 2012, up from $28.1 million at September 30, 2012 and $30.7 million at December 31, 2011.  The increase in long-term debt was primarily for asset/liability management purposes.
 
As a result of the strong deposit growth, which exceeded loan growth during the fourth quarter, the investment portfolio increased to $6.96 billion at December 31, 2012, compared to $6.60 billion at September 30, 2012, and was down slightly from $7.11 billion at December 31, 2011.  The investment portfolio remains largely comprised of securities issued by U. S. government agencies.
 
During the fourth quarter of 2012, the Company repurchased 339.0 thousand shares of common stock at a total cost of $14.9 million under its share repurchase program.  The average cost was $44.06 per share repurchased.  From January 2 through January 25, 2013, the Company repurchased an additional 34.0 thousand shares of common stock at an average cost of $46.60 per share repurchased.  From the beginning of the share repurchase program initiated during July 2001 through December 31, 2012, the Company has repurchased 50.3 million shares and returned over $1.8 billion to shareholders at an average cost of $36.34 per share.  Remaining buyback authority under the share repurchase program was $67.9 million at January 25, 2013.
 
Total shareholders’ equity was $1.02 billion at December 31, 2012, down slightly from September 30, 2012, and up from $1.00 billion at December 31, 2011.  The ratio of tangible common equity to risk-weighted assets was 17.24 percent at December 31, 2012 compared with 17.43 percent at September 30, 2012 and 17.93 percent at December 31, 2011.  The Tier 1 leverage ratio at December 31, 2012 was 6.83 percent, up from 6.78 percent at September 30, 2012 and 6.73 percent at December 31, 2011.
 
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, 2013 to shareholders of record at the close of business on February 28, 2013.
 
Hawaii Economy
 
Hawaii’s economy continued to improve during the fourth quarter of 2012 primarily due to a strong visitor industry.  A record 8.0 million total visitors arrived in Hawaii during 2012, up 9.6 percent compared with 2011, and exceeding the previous high of 7.6 million visitors during 2006.  Total visitor spending reached a record high of $14.3 billion in 2012, up 18.7 percent compared with 2011, and was
 
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Bank of Hawaii Corporation 2012 Financial Results	 	Page 5	
 
largely due to strong spending by international visitors.  The statewide seasonally-adjusted unemployment rate continued to decline during the fourth quarter of 2012 to 5.2% in December compared with 7.8% nationally.  Median sales prices for single-family homes and condominiums as well as closed sales on Oahu increased during 2012 compared with the prior year.  Months of inventory at December 31, 2012 for single-family homes on Oahu declined to 2.5 and 3.0 for condominiums.  More information on current Hawaii economic trends is presented in Table 15.
 
Conference Call Information
 
The Company will review its 2012 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 800-299-9086.  International participants should call 617-786-2903.  Use the pass code “Bank of Hawaii” to access the call.  A replay of the conference call will be available for one week beginning Wednesday, January 30, 2013 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the number 46643910 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, 2011, 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 .
 
# # # #

 
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)	 	 	2012	 	2012	 	2011	 	 	2012	 	2011	 	 	
For the Period:	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	 90,310	 	$	 93,632	 	$	 96,246	 	$	 377,271	 	$	 390,208	 	
Provision for Credit Losses	 	-	 	-	 	2,219	 	979	 	12,690	 	
Total Noninterest Income	 	52,982	 	52,374	 	43,407	 	200,286	 	197,655	 	
Total Noninterest Expense	 	83,456	 	84,878	 	84,382	 	334,288	 	348,193	 	
Net Income	 	40,287	 	41,232	 	39,229	 	166,076	 	160,043	 	
Basic Earnings Per Share	 	0.90	 	0.92	 	0.85	 	3.68	 	3.40	 	
Diluted Earnings Per Share	 	0.90	 	0.92	 	0.85	 	3.67	 	3.39	 	
Dividends Declared Per Share	 	0.45	 	0.45	 	0.45	 	1.80	 	1.80	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.19	  %	1.22	  %	1.17	  %	1.22	  %	1.22	 	%	
Return on Average Shareholders’ Equity	 	15.47	 	16.02	 	15.23	 	16.23	 	15.69	 	
Efficiency Ratio1	 	58.24	 	58.13	 	60.42	 	57.88	 	59.23	 	
Net Interest Margin2	 	2.87	 	2.98	 	3.04	 	2.97	 	3.13	 	
Dividend Payout Ratio3	 	50.00	 	48.91	 	52.94	 	48.91	 	52.94	 	
Average Shareholders’ Equity to Average Assets	 	7.67	 	7.59	 	7.65	 	7.52	 	7.78	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Balances	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases	 	$	 5,798,057	 	$	 5,716,421	 	$	 5,420,352	 	$	 5,680,279	 	$	 5,349,938	 	
Average Assets	 	13,516,519	 	13,490,835	 	13,357,646	 	13,609,188	 	13,105,029	 	
Average Deposits	 	11,376,875	 	11,301,668	 	10,160,392	 	10,935,016	 	9,924,697	 	
Average Shareholders’ Equity	 	1,036,223	 	1,023,804	 	1,022,012	 	1,023,256	 	1,020,065	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Per Share of Common Stock	 	 	 	 	 	 	 	 	 	 	 	
Book Value	 	$	 22.83	 	$	 22.77	 	$	 21.82	 	$	 22.83	 	$	 21.82	 	
Market Price	 	 	 	 	 	 	 	 	 	 	 	
Closing	 	44.05	 	45.62	 	44.49	 	44.05	 	44.49	 	
High	 	46.38	 	48.92	 	45.13	 	49.99	 	49.26	 	
Low	 	41.41	 	45.29	 	34.50	 	41.41	 	34.50	 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	December 31,	 	September 30,	 	December 31,	 	
 	 	 	 	 	 	2012	 	2012	 	2011	 	 	
As of Period End:	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	 	 	 	 	$	 5,854,521	 	$	 5,782,304	 	$	 5,538,304	 	
Total Assets	 	 	 	 	 	13,728,372	 	13,382,425	 	13,846,391	 	
Total Deposits	 	 	 	 	 	11,529,482	 	11,220,547	 	10,592,623	 	
Long-Term Debt	 	 	 	 	 	128,055	 	28,065	 	30,696	 	
Total Shareholders’ Equity	 	 	 	 	 	1,021,665	 	1,024,562	 	1,002,667	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Asset Quality	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	 	 	 	 	$	 128,857	 	$	 130,971	 	$	 138,606	 	
Non-Performing Assets	 	 	 	 	 	37,083	 	40,284	 	40,790	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Financial Ratios	 	 	 	 	 	 	 	 	 	 	 	
Allowance to Loans and Leases Outstanding	 	 	 	 	 	2.20	  %	2.27	  %	2.50	 	%	
Tier 1 Capital Ratio	 	 	 	 	 	16.13	 	16.12	 	16.68	 	
Total Capital Ratio	 	 	 	 	 	17.39	 	17.39	 	17.95	 	
Tier 1 Leverage Ratio	 	 	 	 	 	6.83	 	6.78	 	6.73	 	
Total Shareholders’ Equity to Total Assets	 	 	 	 	 	7.44	 	7.66	 	7.24	 	
Tangible Common Equity to Tangible Assets 4	 	 	 	 	 	7.23	 	7.44	 	7.03	 	
Tangible Common Equity to Risk-Weighted Assets 4	 	 	 	17.24	 	17.43	 	17.93	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Non-Financial Data	 	 	 	 	 	 	 	 	 	 	 	
Full-Time Equivalent Employees	 	 	 	 	 	2,276	 	2,304	 	2,370	 	
Branches and Offices	 	 	 	 	 	76	 	77	 	81	 	
ATMs	 	 	 	 	 	494	 	495	 	506	 	

1  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
 
2  Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
 
3  Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.
 
4 Tangible common equity, a non-GAAP financial measure, is defined by the Company as shareholders’ equity minus goodwill and intangible assets.  Intangible assets are included as a component of other assets in the Consolidated Statements of Condition.
 
6

 
Bank of Hawaii Corporation and Subsidiaries
 
Reconciliation of Non-GAAP Financial Measures	 	Table 1b	 	
 
 	 	December 31,	 	September 30,	 	December 31,	 	
 	 	 	 	 	 	 	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	
 	 	 	 	 	 	 	 	
Total Shareholders’ Equity	 	$	 1,021,665	 	$	 1,024,562	 	$	 1,002,667	 	
Less: Goodwill	 	31,517	 	31,517	 	31,517	 	
Intangible Assets	 	33	 	46	 	83	 	
Tangible Common Equity	 	$	 990,115	 	$	 992,999	 	$	 971,067	 	
 	 	 	 	 	 	 	 	
Total Assets	 	$	 13,728,372	 	$	 13,382,425	 	$	 13,846,391	 	
Less: Goodwill	 	31,517	 	31,517	 	31,517	 	
Intangible Assets	 	33	 	46	 	83	 	
Tangible Assets	 	$	 13,696,822	 	$	 13,350,862	 	$	 13,814,791	 	
 	 	 	 	 	 	 	 	
Risk-Weighted Assets, determined in accordance with prescribed	 	 	 	 	 	 	 	 	 	 	
regulatory requirements	 	$	 5,744,722	 	$	 5,697,581	 	$	 5,414,481	 	
 	 	 	 	 	 	 	 	
Total Shareholders’ Equity to Total Assets	 	7.44	%	7.66	%	7.24	%	
Tangible Common Equity to Tangible Assets (Non-GAAP)	 	7.23	%	7.44	%	7.03	%	
 	 	 	 	 	 	 	 	
Tier 1 Capital Ratio	 	16.13	%	16.12	%	16.68	%	
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)	 	17.24	%	17.43	%	17.93	%	
 
7

 
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)	 	 	2012	 	2012	 	2011	 	 	2012	 	2011	
Investment Securities Gains, Net	 	 	$	-	 	$	 -	 	$	 -	 	 	$	 -	 	$	 6,366	
Gain on Mutual Fund Sale	 	 	-	 	-	 	-	 	 	-	 	1,956	
Gains (Losses) on Disposal of Leased Equipment	 	 	-	 	-	 	-	 	 	2,473	 	-	
Decrease in Allowance for Loan and Lease Losses	 	 	2,114	 	1,472	 	4,804	 	 	9,749	 	8,752	
Planned Branch Closures in American Samoa	 	 	(1,465)	 	-	 	-	 	 	(1,465)	 	-	
Bank of Hawaii Charitable Foundation	 	 	-	 	-	 	-	 	 	-	 	(2,000)	
PC Refresh	 	 	-	 	-	 	-	 	 	(1,163)	 	-    	
Settlement Related to Overdraft Claims	 	 	-	 	-	 	-	 	 	-	 	(9,000)	
Significant Income (Expense) Items Before the Provision (Benefit) for Income Taxes	 	 	649	 	1,472	 	4,804	 	 	9,594	 	6,074	
Income Taxes Impact Related to Lease Transactions	 	 	-	 	-	 	-	 	 	(3,083)	 	-	
Income Tax Impact	 	 	227	 	515	 	1,681	 	 	2,492	 	2,126	
Net Significant Income (Expense) Items	 	 	$	 422	 	$	 957	 	$	 3,123	 	 	$	 10,185	 	$	 3,948	
 
8

 
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)	 	 	2012	 	2012	 	2011	 	 	 	2012	 	2011	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	 	$	64,627	 	$	64,668	 	$	64,760	 	 	 	$	257,896	 	$	262,239	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	 	15,349	 	15,922	 	19,107	 	 	 	65,972	 	103,363	 	
Held-to-Maturity	 	 	20,253	 	23,232	 	23,608	 	 	 	94,952	 	72,138	 	
Deposits	 	 	3	 	3	 	2	 	 	 	9	 	8	 	
Funds Sold	 	 	180	 	105	 	120	 	 	 	533	 	828	 	
Other	 	 	283	 	283	 	280	 	 	 	1,127	 	1,117	 	
Total Interest Income	 	 	100,695	 	104,213	 	107,877	 	 	 	420,489	 	439,693	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	 	2,753	 	2,931	 	3,736	 	 	 	12,376	 	18,321	 	
Securities Sold Under Agreements to Repurchase	 	 	7,158	 	7,185	 	7,392	 	 	 	28,897	 	29,171	 	
Funds Purchased	 	 	4	 	7	 	5	 	 	 	21	 	20	 	
Long-Term Debt	 	 	470	 	458	 	498	 	 	 	1,924	 	1,973	 	
Total Interest Expense	 	 	10,385	 	10,581	 	11,631	 	 	 	43,218	 	49,485	 	
Net Interest Income	 	 	90,310	 	93,632	 	96,246	 	 	 	377,271	 	390,208	 	
Provision for Credit Losses	 	 	-    	 	-    	 	2,219	 	 	 	979	 	12,690	 	
Net Interest Income After Provision for Credit Losses	 	 	90,310	 	93,632	 	94,027	 	 	 	376,292	 	377,518	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	 	12,066	 	11,050	 	11,025	 	 	 	45,229	 	45,046	 	
Mortgage Banking	 	 	11,268	 	11,745	 	3,401	 	 	 	35,644	 	14,664	 	
Service Charges on Deposit Accounts	 	 	9,459	 	9,346	 	9,606	 	 	 	37,621	 	38,733	 	
Fees, Exchange, and Other Service Charges	 	 	12,333	 	11,907	 	12,401	 	 	 	48,965	 	60,227	 	
Investment Securities Gains (Losses), Net	 	 	-    	 	13	 	282	 	 	 	(77	)	6,366	 	
Insurance	 	 	2,550	 	2,326	 	2,312	 	 	 	9,553	 	10,957	 	
Other	 	 	5,306	 	5,987	 	4,380	 	 	 	23,351	 	21,662	 	
Total Noninterest Income	 	 	52,982	 	52,374	 	43,407	 	 	 	200,286	 	197,655	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	 	46,116	 	47,231	 	44,927	 	 	 	184,408	 	182,816	 	
Net Occupancy	 	 	11,867	 	10,524	 	11,253	 	 	 	42,965	 	43,169	 	
Net Equipment	 	 	4,705	 	4,523	 	4,748	 	 	 	19,723	 	18,849	 	
Professional Fees	 	 	2,611	 	2,494	 	1,926	 	 	 	9,623	 	8,623	 	
FDIC Insurance	 	 	1,892	 	1,822	 	2,027	 	 	 	7,873	 	9,346	 	
Other	 	 	16,265	 	18,284	 	19,501	 	 	 	69,696	 	85,390	 	
Total Noninterest Expense	 	 	83,456	 	84,878	 	84,382	 	 	 	334,288	 	348,193	 	
Income Before Provision for Income Taxes	 	 	59,836	 	61,128	 	53,052	 	 	 	242,290	 	226,980	 	
Provision for Income Taxes	 	 	19,549	 	19,896	 	13,823	 	 	 	76,214	 	66,937	 	
Net Income	 	 	$	40,287	 	$	41,232	 	$	39,229	 	 	 	$	166,076	 	$	160,043	 	
Basic Earnings Per Share	 	 	$	0.90	 	$	0.92	 	$	0.85	 	 	 	$	3.68	 	$	3.40	 	
Diluted Earnings Per Share	 	 	$	0.90	 	$	0.92	 	$	0.85	 	 	 	$	3.67	 	$	3.39	 	
Dividends Declared Per Share	 	 	$	0.45	 	$	0.45	 	$	0.45	 	 	 	$	1.80	 	$	1.80	 	
Basic Weighted Average Shares	 	 	44,623,823	 	44,913,348	 	46,195,147	 	 	 	45,115,441	 	47,064,925	 	
Diluted Weighted Average Shares	 	 	44,740,109	 	45,050,638	 	46,324,734	 	 	 	45,249,300	 	47,224,981	 	
 
9

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Comprehensive Income	 	Table 4 	
 
 	 	Three Months Ended	 	 	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	 	 	December 31,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	 	 	2012	 	2011	 	
Net Income	 	  $	40,287	 	  $	41,232	 	  $	39,229	 	 	 	$	166,076	 	$	160,043	 	
Other Comprehensive Income (Loss), Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Unrealized Gains (Losses) on Investment Securities	 	(9,858	)	9,770	 	(1,965	)	 	 	(3,155	)	16,411	 	
Defined Benefit Plans	 	(3,358	)	152	 	(9,526	)	 	 	(2,900	)	(8,113	)	
Other Comprehensive Income (Loss)	 	(13,216	)	9,922	 	(11,491	)	 	 	(6,055	)	8,298	 	
Comprehensive Income	 	 $	27,071	 	 $	51,154	 	 $	27,738	 	 	 	$	160,021	 	$	168,341	 	
 
10

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Condition	 	Table 5 	
 
 	 	December 31,	 	September 30,	 	December 31,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	
Assets	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	3,393	 	$	4,673	 	$	3,036	 	
Funds Sold	 	185,682	 	251,664	 	512,384	 	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	3,367,557	 	3,124,209	 	3,451,885	 	
Held to Maturity (Fair Value of $3,687,676; $3,587,997; and $3,754,206)	 	3,595,065	 	3,475,259	 	3,657,796	 	
Loans Held for Sale	 	21,374	 	25,971	 	18,957	 	
Loans and Leases	 	5,854,521	 	5,782,304	 	5,538,304	 	
Allowance for Loan and Lease Losses	 	(128,857	)	(130,971	)	(138,606	)	
Net Loans and Leases	 	5,725,664	 	5,651,333	 	5,399,698	 	
Total Earning Assets	 	12,898,735	 	12,533,109	 	13,043,756	 	
Cash and Noninterest-Bearing Deposits	 	163,786	 	153,599	 	154,489	 	
Premises and Equipment	 	105,005	 	107,144	 	103,550	 	
Customers’ Acceptances	 	173	 	242	 	476	 	
Accrued Interest Receivable	 	43,077	 	47,192	 	43,510	 	
Foreclosed Real Estate	 	3,887	 	3,067	 	3,042	 	
Mortgage Servicing Rights	 	25,240	 	23,980	 	24,279	 	
Goodwill	 	31,517	 	31,517	 	31,517	 	
Other Assets	 	456,952	 	482,575	 	441,772	 	
Total Assets	 	$	13,728,372	 	$	13,382,425	 	$	13,846,391	 	
 	 	 	 	 	 	 	 	
Liabilities	 	 	 	 	 	 	 	
Deposits	 	 	 	 	 	 	 	
Noninterest-Bearing Demand	 	$	3,367,185	 	$	2,985,561	 	$	2,850,923	 	
Interest-Bearing Demand	 	2,163,473	 	2,034,319	 	2,005,983	 	
Savings	 	4,399,316	 	4,480,733	 	4,398,638	 	
Time	 	1,599,508	 	1,719,934	 	1,337,079	 	
Total Deposits	 	11,529,482	 	11,220,547	 	10,592,623	 	
Funds Purchased	 	11,296	 	10,942	 	10,791	 	
Securities Sold Under Agreements to Repurchase	 	758,947	 	818,080	 	1,925,998	 	
Long-Term Debt	 	128,055	 	28,065	 	30,696	 	
Banker’s Acceptances	 	173	 	242	 	476	 	
Retirement Benefits Payable	 	47,658	 	41,872	 	46,949	 	
Accrued Interest Payable	 	4,776	 	5,997	 	5,330	 	
Taxes Payable and Deferred Taxes	 	88,014	 	94,369	 	95,840	 	
Other Liabilities	 	138,306	 	137,749	 	135,021	 	
Total Liabilities	 	12,706,707	 	12,357,863	 	12,843,724	 	
Shareholders’ Equity	 	 	 	 	 	 	 	
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: December 31, 2012 - 57,319,352 / 44,754,835; September 30, 2012 - 57,315,093 / 45,004,813; and December 31, 2011 - 57,134,470 / 45,947,116)	 	571	 	571	 	571	 	
Capital Surplus	 	515,619	 	513,758	 	507,558	 	
Accumulated Other Comprehensive Income	 	29,208	 	42,424	 	35,263	 	
Retained Earnings	 	1,084,477	 	1,065,245	 	1,003,938	 	
Treasury Stock, at Cost (Shares: December 31, 2012 - 12,564,517; September 30, 2012 - 12,310,280; and December 31, 2011 - 11,187,354)	 	(608,210	)	(597,436	)	(544,663	)	
Total Shareholders’ Equity	 	1,021,665	 	1,024,562	 	1,002,667	 	
Total Liabilities and Shareholders’ Equity	 	$	13,728,372	 	$	13,382,425	 	$	13,846,391	 	
 
11

 
Bank of Hawaii Corporation and Subsidiaries	 	
 	 	
Consolidated Statements of Shareholders’ Equity	Table 6	
 
 	 	 	 	 	 	 	 	Accum.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Other	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Compre-	 	 	 	 	 	 	 	
 	 	Common Shares	 	Common	 	Capital	 	hensive	 	Retained	 	Treasury	 	 	 	
(dollars in thousands)	 	Outstanding	 	Stock	 	Surplus	 	Income	 	Earnings	 	Stock	 	Total	 	
Balance as of December 31, 2010	 	48,097,672	 	$	570	 	$	500,888	 	$	26,965	 	$	932,629	 	$	(449,919	)	$	1,011,133	 	
Net Income	 	-	 	-	 	-	 	-	 	160,043	 	-	 	160,043	 	
Other Comprehensive Income	 	-	 	-	 	-	 	8,298	 	-	 	-	 	8,298	 	
Share-Based Compensation	 	-	 	-	 	6,216	 	-	 	-	 	-	 	6,216	 	
Common Stock Issued under Purchase and Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Compensation Plans and Related Tax Benefits	 	389,470	 	1	 	454	 	-	 	(3,843	)	16,800	 	13,412	 	
Common Stock Repurchased	 	(2,540,026	)	-	 	-	 	-	 	-	 	(111,544	)	(111,544	)	
Cash Dividends Paid ($1.80 per share)	 	-	 	-	 	-	 	-	 	(84,891	)	-	 	(84,891	)	
Balance as of December 31, 2011	 	45,947,116	 	$	571	 	$	507,558	 	$	35,263	 	$	1,003,938	 	$	(544,663	)	$	1,002,667	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	-	 	-	 	-	 	-	 	166,076	 	-	 	166,076	 	
Other Comprehensive Loss	 	-	 	-	 	-	 	(6,055	)	-	 	-	 	(6,055	)	
Share-Based Compensation	 	-	 	-	 	7,537	 	-	 	-	 	-	 	7,537	 	
Common Stock Issued under Purchase and Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Compensation Plans and Related Tax Benefits	 	565,956	 	-	 	524	 	-	 	(3,892	)	17,897	 	14,529	 	
Common Stock Repurchased	 	(1,758,237	)	-	 	-	 	-	 	-	 	(81,444	)	(81,444	)	
Cash Dividends Paid ($1.80 per share)	 	-	 	-	 	-	 	-	 	(81,645	)	-	 	(81,645	)	
Balance as of December 31, 2012	 	44,754,835	 	$	571	 	$	515,619	 	$	29,208	 	$	1,084,477	 	$	(608,210	)	$	1,021,665	 	
 
12

 
Bank of Hawaii Corporation and Subsidiaries	 	
 	 	
Average Balances and Interest Rates - Taxable-Equivalent Basis	Table 7a	
 
 	 	Three Months Ended	 	 	Three Months Ended	 	Three Months Ended	 	
 	 	 	 	 	 	 	 	 	
 	 	December 31, 2012	 	 	 	September 30, 2012	 	December 31, 2011	 	
 	 	Average	 	Income/	 	Yield/	 	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	
                                                                                                              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(dollars in millions)	 	Balance	 	Expense	 	Rate	 	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	  $	4.4	 	  $	-	 	0.29	  %	 	  $	4.0	 	  $	-	 	0.33	  %	  $	3.9	 	  $	-	 	0.23	  %	
Funds Sold	 	332.1	 	0.2	 	0.21	 	 	221.5	 	0.1	 	0.19	 	239.0	 	0.1	 	0.20	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	3,277.2	 	17.6	 	2.15	 	 	3,247.8	 	18.3	 	2.26	 	3,763.7	 	19.9	 	2.12	 	
Held-to-Maturity	 	3,406.3	 	20.3	 	2.38	 	 	3,617.3	 	23.2	 	2.57	 	3,259.8	 	23.6	 	2.90	 	
Loans Held for Sale	 	18.9	 	0.2	 	4.36	 	 	15.8	 	0.2	 	4.32	 	14.7	 	0.2	 	4.73	 	
Loans and Leases1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	811.3	 	7.8	 	3.84	 	 	797.2	 	7.7	 	3.86	 	798.3	 	8.0	 	3.99	 	
Commercial Mortgage	 	1,063.6	 	11.2	 	4.18	 	 	993.2	 	10.8	 	4.32	 	929.0	 	10.9	 	4.66	 	
Construction	 	104.5	 	1.2	 	4.77	 	 	100.1	 	1.3	 	4.97	 	85.7	 	1.1	 	4.84	 	
Commercial Lease Financing	 	275.9	 	1.7	 	2.46	 	 	278.5	 	1.7	 	2.42	 	311.0	 	2.1	 	2.68	 	
Residential Mortgage	 	2,369.5	 	27.5	 	4.64	 	 	2,391.8	 	28.1	 	4.70	 	2,163.1	 	27.3	 	5.05	 	
Home Equity	 	771.3	 	8.1	 	4.18	 	 	770.2	 	8.3	 	4.28	 	778.1	 	9.0	 	4.57	 	
Automobile	 	205.6	 	3.0	 	5.73	 	 	194.9	 	2.9	 	5.90	 	190.7	 	3.1	 	6.40	 	
Other2	 	196.4	 	4.0	 	8.15	 	 	190.5	 	3.9	 	8.09	 	164.5	 	3.2	 	7.76	 	
Total Loans and Leases	 	5,798.1	 	64.5	 	4.44	 	 	5,716.4	 	64.7	 	4.51	 	5,420.4	 	64.7	 	4.75	 	
Other	 	79.5	 	0.3	 	1.43	 	 	80.1	 	0.3	 	1.41	 	79.9	 	0.3	 	1.40	 	
Total Earning Assets3	 	12,916.5	 	103.1	 	3.19	 	 	12,902.9	 	106.8	 	3.30	 	12,781.4	 	108.8	 	3.40	 	
Cash and Noninterest-Bearing Deposits	 	144.8	 	 	 	 	 	 	134.9	 	 	 	 	 	142.2	 	 	 	 	 	
Other Assets	 	455.2	 	 	 	 	 	 	453.0	 	 	 	 	 	434.0	 	 	 	 	 	
Total Assets	 	  $	13,516.5	 	 	 	 	 	 	  $	13,490.8	 	 	 	 	 	  $	13,357.6	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	2,011.2	 	0.1	 	0.03	 	 	1,968.8	 	0.1	 	0.03	 	1,799.9	 	0.1	 	0.03	 	
Savings	 	4,451.4	 	1.0	 	0.09	 	 	4,456.2	 	1.0	 	0.09	 	4,447.8	 	1.4	 	0.13	 	
Time	 	1,755.6	 	1.6	 	0.36	 	 	1,823.2	 	1.8	 	0.38	 	1,145.4	 	2.2	 	0.76	 	
Total Interest-Bearing Deposits	 	8,218.2	 	2.7	 	0.13	 	 	8,248.2	 	2.9	 	0.14	 	7,393.1	 	3.7	 	0.20	 	
Short-Term Borrowings	 	11.0	 	-	 	0.14	 	 	18.5	 	-	 	0.15	 	20.4	 	-	 	0.08	 	
Securities Sold Under Agreements to Repurchase	 	776.8	 	7.2	 	3.61	 	 	853.0	 	7.2	 	3.30	 	1,848.9	 	7.4	 	1.57	 	
Long-Term Debt	 	36.7	 	0.5	 	5.12	 	 	28.0	 	0.5	 	6.52	 	30.7	 	0.5	 	6.49	 	
Total Interest-Bearing Liabilities	 	9,042.7	 	10.4	 	0.45	 	 	9,147.7	 	10.6 	 	0.46	 	9,293.1	 	11.6	 	0.49	 	
Net Interest Income	 	 	 	  $	92.7	 	 	 	 	 	 	  $	96.2	 	 	 	 	 	  $	97.2	 	 	 	
Interest Rate Spread	 	 	 	 	 	2.74	  %	 	 	 	 	 	2.84	  %	 	 	 	 	2.91	  %	
Net Interest Margin	 	 	 	 	 	2.87	  %	 	 	 	 	 	2.98	  %	 	 	 	 	3.04	  %	
Noninterest-Bearing Demand Deposits	 	3,158.7	 	 	 	 	 	 	3,053.5	 	 	 	 	 	2,767.3	 	 	 	 	 	
Other Liabilities	 	278.9	 	 	 	 	 	 	265.8	 	 	 	 	 	275.2	 	 	 	 	 	
Shareholders’ Equity	 	1,036.2	 	 	 	 	 	 	 	1,023.8	 	 	 	 	 	1,022.0	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	  $	13,516.5	 	 	 	 	 	 	 	  $	13,490.8	 	 	 	 	 	  $	13,357.6	 	 	 	 	 	

1  Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
 
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.
 
3  Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $2,394,000, $2,529,000 and $938,000 for the three months ended December 31, 2012, September 30, 2012, and December 31, 2011, respectively.
 
13

 
Bank of Hawaii Corporation and Subsidiaries	 	
Average Balances and Interest Rates - Taxable-Equivalent Basis	Table 7b	 	
 	 	 	 	 	 	 	 	
 	 	Year Ended	 	 	Year Ended	 	 	
 	 	December 31, 2012	 	 	December 31, 2011	 	 	
 	 	Average	 	 	Income/	 	 	Yield/	 	 	Average	 	 	Income/	 	Yield/	 	 	
(dollars in millions)	 	Balance	 	 	Expense	 	 	Rate	 	 	Balance	 	 	Expense	 	Rate	 	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	  $	3.7	 	 	  $	-	 	 	0.26	  %	 	  $	4.2	 	 	  $	-	 	0.19	 	%	
Funds Sold	 	263.5	 	 	0.5	 	 	0.20	 	 	380.2	 	 	0.8  	 	0.22	 	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	3,346.3	 	 	75.0	 	 	2.24	 	 	4,439.8	 	 	105.4	 	2.37	 	 	
Held-to-Maturity	 	3,636.7	 	 	95.0	 	 	2.61	 	 	2,279.6	 	 	72.2	 	3.16	 	 	
Loans Held for Sale	 	14.7	 	 	0.6	 	 	4.29	 	 	11.0	 	 	0.5	 	4.54	 	 	
Loans and Leases1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	800.2	 	 	31.3	 	 	3.91	 	 	790.6	 	 	31.8	 	4.02	 	 	
Commercial Mortgage	 	988.2	 	 	42.9	 	 	4.34	 	 	887.1	 	 	42.8	 	4.82	 	 	
Construction	 	101.9	 	 	5.1	 	 	5.04	 	 	80.1	 	 	4.0	 	5.06	 	 	
Commercial Lease Financing	 	283.3	 	 	6.8	 	 	2.39	 	 	322.1	 	 	8.7	 	2.71	 	 	
Residential Mortgage	 	2,349.6	 	 	111.3	 	 	4.74	 	 	2,126.9	 	 	111.5	 	5.24	 	 	
Home Equity	 	773.2	 	 	33.4	 	 	4.31	 	 	784.9	 	 	37.4	 	4.76	 	 	
Automobile	 	196.8	 	 	11.7	 	 	5.96	 	 	194.4	 	 	13.2	 	6.78	 	 	
Other2	 	187.1	 	 	15.2	 	 	8.11	 	 	163.8	 	 	12.4	 	7.57	 	 	
Total Loans and Leases	 	5,680.3	 	 	257.7	 	 	4.54	 	 	5,349.9	 	 	261.8	 	4.89	 	 	
Other	 	79.9	 	 	1.1	 	 	1.41	 	 	79.9	 	 	1.1	 	1.40	 	 	
Total Earning Assets3	 	13,025.1	 	 	429.9	 	 	3.30	 	 	12,544.6	 	 	441.8	 	3.52	 	 	
Cash and Noninterest-Bearing Deposits	 	137.2	 	 	 	 	 	 	 	 	135.3	 	 	 	 	 	 	 	
Other Assets	 	446.9	 	 	 	 	 	 	 	 	425.1	 	 	 	 	 	 	 	
Total Assets	 	  $	13,609.2	 	 	 	 	 	 	 	 	  $	13,105.0	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	1,938.6	 	 	0.5	 	 	0.03	 	 	1,786.7	 	 	0.7	 	0.04	 	 	
Savings	 	4,447.8	 	 	4.5	 	 	0.10	 	 	4,501.0	 	 	7.3	 	0.16	 	 	
Time	 	1,524.6	 	 	7.4	 	 	0.48	 	 	1,067.8	 	 	10.3	 	0.96	 	 	
Total Interest-Bearing Deposits	 	7,911.0	 	 	12.4	 	 	0.16	 	 	7,355.5	 	 	18.3	 	0.25	 	 	
Short-Term Borrowings	 	15.1	 	 	-	 	 	0.14	 	 	18.2	 	 	-	 	0.11	 	 	
Securities Sold Under Agreements to Repurchase	 	1,335.7	 	 	28.9	 	 	2.16	 	 	1,845.8	 	 	29.2	 	1.58	 	 	
Long-Term Debt	 	31.5	 	 	1.9	 	 	6.10	 	 	31.6	 	 	2.0	 	6.23	 	 	
Total Interest-Bearing Liabilities	 	9,293.3	 	 	43.2	 	 	0.47	 	 	9,251.1	 	 	49.5 	 	0.53	 	 	
Net Interest Income	 	 	 	 	  $	386.7	 	 	 	 	 	 	 	 	  $	392.3	 	 	 	 	
Interest Rate Spread	 	 	 	 	 	 	 	2.83	  %	 	 	 	 	 	 	2.99	 	%	
Net Interest Margin	 	 	 	 	 	 	 	2.97	  %	 	 	 	 	 	 	3.13	 	%	
Noninterest-Bearing Demand Deposits	 	3,024.0	 	 	 	 	 	 	 	 	2,569.2	 	 	 	 	 	 	
Other Liabilities	 	268.6	 	 	 	 	 	 	 	 	264.6	 	 	 	 	 	 	
Shareholders’ Equity	 	1,023.3	 	 	 	 	 	 	 	 	1,020.1	 	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	  $	13,609.2	 	 	 	 	 	 	 	 	  $	13,105.0	 	 	 	 	 	 	

 
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 $9,473,000 and $2,080,000 for the year ended December 31, 2012 and 2011, respectively.
 
14

 
Bank of Hawaii Corporation and Subsidiaries	 	
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis	Table 8a	
 
 	Three Months Ended December 31, 2012	
 	 	Compared to September 30, 2012	 	
(dollars in millions)	 	Volume	 1	Rate	 1	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	0.1	 	$	-	 	$	0.1	 	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	0.2	 	(0.9	)	(0.7	)	
Held-to-Maturity	 	(1.3	)	(1.6	)	(2.9	)	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	0.1	 	-	 	0.1	 	
Commercial Mortgage	 	0.7	 	(0.3	)	0.4	 	
Construction	 	0.1	 	(0.2	)	(0.1	)	
Residential Mortgage	 	(0.3	)	(0.3	)	(0.6	)	
Home Equity	 	-	 	(0.2	)	(0.2	)	
Automobile	 	0.2	 	(0.1	)	0.1	 	
Other2	 	0.1	 	-	 	0.1	 	
Total Loans and Leases	 	0.9	 	(1.1	)	(0.2	)	
Total Change in Interest Income	 	(0.1	)	(3.6	)	(3.7	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Time	 	(0.1	)	(0.1	)	(0.2	)	
Total Interest-Bearing Deposits	 	(0.1	)	(0.1	)	(0.2	)	
Securities Sold Under Agreements to Repurchase	 	(0.6	)	0.6	 	-	 	
Long-Term Debt	 	0.1	 	(0.1	)	-	 	
Total Change in Interest Expense	 	(0.6	)	0.4	 	(0.2	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	0.5	 	$	(4.0	)	$	(3.5	)	

1    The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
 
2    Comprised of other consumer revolving credit, installment, and consumer lease financing.
 
15

 
Bank of Hawaii Corporation and Subsidiaries	 	
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis	Table 8b	
 
 	 	Three Months Ended December 31, 2012	 	
 	 	Compared to December 31, 2011	 	
(dollars in millions)	 	Volume	 1	Rate	 1	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	0.1	 	$	-	 	$	0.1	 	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	(2.6	)	0.3	 	(2.3	)	
Held-to-Maturity	 	1.1	 	(4.4	)	(3.3	)	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	0.1	 	(0.3	)	(0.2	)	
Commercial Mortgage	 	1.5	 	(1.2	)	0.3	 	
Construction	 	0.2	 	(0.1	)	0.1	 	
Commercial Lease Financing	 	(0.2	)	(0.2	)	(0.4	)	
Residential Mortgage	 	2.5	 	(2.3	)	0.2	 	
Home Equity	 	(0.1	)	(0.8	)	(0.9	)	
Automobile	 	0.2	 	(0.3	)	(0.1	)	
Other2	 	0.6	 	0.2	 	0.8	 	
Total Loans and Leases	 	4.8	 	(5.0	)	(0.2	)	
Total Change in Interest Income	 	3.4	 	(9.1	)	(5.7	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Savings	 	-	 	(0.4	)	(0.4	)	
Time	 	0.9	 	(1.5	)	(0.6	)	
Total Interest-Bearing Deposits	 	0.9	 	(1.9	)	(1.0	)	
Securities Sold Under Agreements to Repurchase	 	(6.0	)	5.8	 	(0.2	)	
Long-Term Debt	 	0.1	 	(0.1	)	-	 	
Total Change in Interest Expense	 	(5.0	)	3.8	 	(1.2	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	8.4	 	$	(12.9	)	$	(4.5	)	

1    The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

2    Comprised of other consumer revolving credit, installment, and consumer lease financing.
 
16

 
Bank of Hawaii Corporation and Subsidiaries	 	
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis	Table 8c	
 
 	 	Year Ended December 31, 2012	 	
 	 	Compared to December 31, 2011	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	(0.2	)	$	(0.1	)	$	(0.3	)	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	(24.8	)	(5.6	)	(30.4	)	
Held-to-Maturity	 	37.1	 	(14.3	)	22.8	 	
Loans Held for Sale	 	0.1	 	-   	 	0.1	 	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	0.4	 	(0.9	)	(0.5	)	
Commercial Mortgage	 	4.6	 	(4.5	)	0.1	 	
Construction	 	1.1	 	-   	 	1.1	 	
Commercial Lease Financing	 	(1.0	)	(0.9	)	(1.9	)	
Residential Mortgage	 	11.1	 	(11.3	)	(0.2	)	
Home Equity	 	(0.5	)	(3.5	)	(4.0	)	
Automobile	 	0.1	 	(1.6	)	(1.5	)	
Other2	 	1.9	 	0.9	 	2.8	 	
Total Loans and Leases	 	17.7	 	(21.8	)	(4.1	)	
Total Change in Interest Income	 	29.9	 	(41.8	)	(11.9	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	0.1	 	(0.3	)	(0.2	)	
Savings	 	(0.1	)	(2.7	)	(2.8	)	
Time	 	3.4	 	(6.3	)	(2.9	)	
Total Interest-Bearing Deposits	 	3.4	 	(9.3	)	(5.9	)	
Securities Sold Under Agreements to Repurchase	 	(9.4	)	9.1	 	(0.3	)	
Long-Term Debt	 	-   	 	(0.1	)	(0.1	)	
Total Change in Interest Expense	 	(6.0	)	(0.3	)	(6.3	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	35.9	 	$	(41.5	)	$	(5.6	)	

1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
 
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
 
17

 
Bank of Hawaii Corporation and Subsidiaries	 	
Salaries and Benefits	Table 9	
 
 	 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	2012	 	2011	 	
Salaries	 	$	29,378	 	$	29,312	 	$	28,330	 	$	115,208	 	$	115,512	 	
Incentive Compensation	 	4,248	 	4,492	 	3,881	 	16,926	 	16,367	 	
Share-Based Compensation and Cash Grants for the Purchase of Company Stock	 	1,701	 	1,817	 	1,819	 	6,961	 	5,720	 	
Commission Expense	 	1,953	 	1,750	 	1,701	 	6,993	 	6,489	 	
Retirement and Other Benefits	 	3,821	 	4,322	 	4,429	 	16,014	 	16,829	 	
Payroll Taxes	 	2,071	 	2,267	 	2,030	 	10,593	 	10,645	 	
Medical, Dental, and Life Insurance	 	2,388	 	2,255	 	2,322	 	9,319	 	9,039	 	
Separation Expense	 	556	 	1,016	 	415	 	2,394	 	2,215	 	
Total Salaries and Benefits	 	$	46,116	 	$	47,231	 	$	44,927	 	$	184,408	 	$	182,816	 	
 
18

 
Bank of Hawaii Corporation and Subsidiaries	 	
Loan and Lease Portfolio Balances	Table 10	
 
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands)	 	2012	 	2012	 	2012	 	2012	 	2011	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	829,512	 	$	808,621	 	$	781,688	 	$	788,718	 	$	817,170	 	
Commercial Mortgage	 	1,097,425	 	1,039,556	 	961,984	 	948,196	 	938,250	 	
Construction	 	113,987	 	101,818	 	97,668	 	110,184	 	98,669	 	
Lease Financing	 	274,969	 	277,328	 	281,020	 	285,860	 	311,928	 	
Total Commercial	 	2,315,893	 	2,227,323	 	2,122,360	 	2,132,958	 	2,166,017	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	2,349,916	 	2,392,871	 	2,401,331	 	2,319,485	 	2,215,892	 	
Home Equity	 	770,376	 	770,284	 	766,839	 	773,643	 	780,691	 	
Automobile	 	209,832	 	200,788	 	194,339	 	193,851	 	192,506	 	
Other1	 	208,504	 	191,038	 	186,614	 	178,995	 	183,198	 	
Total Consumer	 	3,538,628	 	3,554,981	 	3,549,123	 	3,465,974	 	3,372,287	 	
Total Loans and Leases	 	$	5,854,521	 	$	5,782,304	 	$	5,671,483	 	$	5,598,932	 	$	5,538,304	 	

Higher Risk Loans and Leases Outstanding
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands)	 	2012	 	2012	 	2012	 	2012	 	2011	 	
Residential Land Loans2	 	$	14,984	 	$	16,513	 	$	16,703	 	$	17,602	 	$	18,163	 	
Home Equity Loans3	 	19,914	 	19,774	 	22,029	 	21,359	 	21,413	 	
Air Transportation4	 	27,782	 	27,765	 	27,633	 	27,548	 	36,144	 	
Total Higher Risk Loans	 	$	62,680	 	$	64,052	 	$	66,365	 	$	66,509	 	$	75,720	 	
 
1      Comprised of other revolving credit, installment, and lease financing.
2      We consider all of our residential land loans, which are consumer loans secured by unimproved lots, to be of higher risk due to the volatility in the value of the underlying collateral.
3      Higher risk home equity loans are defined as those loans originated in 2005 or later, with current monitoring credit scores below 600, and with original loan-to-value ratios greater than 70%.
4      We consider all of our air transportation leases to be of higher risk due to the weak financial profile of the industry.

Deposits
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands)	 	2012	 	2012	 	2012	 	2012	 	2011	 	
Consumer	 	$	5,537,624	 	$	5,369,724	 	$	5,360,325	 	$	5,377,804	 	$	5,241,827	 	
Commercial	 	4,576,410	 	4,394,745	 	4,403,095	 	4,307,931	 	4,320,712	 	
Public and Other	 	1,415,448	 	1,456,078	 	1,784,573	 	935,435	 	1,030,084	 	
Total Deposits	 	$	11,529,482	 	$	11,220,547	 	$	11,547,993	 	$	10,621,170	 	$	10,592,623	 	
 
19

 
Bank of Hawaii Corporation and Subsidiaries	 	 	 	
 	 	 	 	
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More	 	Table 11	 	
 
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands)	 	2012	 	2012	 	2012	 	2012	 	2011	 	
Non-Performing Assets	 	 	 	 	 	 	 	 	 	 	 	
Non-Accrual Loans and Leases	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	5,534	 	$	5,635	 	$	5,778	 	$	5,852	 	$	6,243	 	
Commercial Mortgage	 	3,030	 	2,671	 	2,737	 	2,113	 	2,140	 	
Construction	 	833	 	953	 	1,182	 	1,482	 	2,080	 	
Lease Financing	 	-	 	-	 	-	 	4	 	5	 	
Total Commercial	 	9,397	 	9,259	 	9,697	 	9,451	 	10,468	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	21,725	 	25,456	 	26,803	 	26,356	 	25,256	 	
Home Equity	 	2,074	 	2,502	 	2,425	 	2,069	 	2,024	 	
Total Consumer	 	23,799	 	27,958	 	29,228	 	28,425	 	27,280	 	
Total Non-Accrual Loans and Leases	 	33,196	 	37,217	 	38,925	 	37,876	 	37,748	 	
Foreclosed Real Estate	 	3,887	 	3,067	 	2,569	 	3,530	 	3,042	 	
Total Non-Performing Assets	 	$	37,083	 	$	40,284	 	$	41,494	 	$	41,406	 	$	40,790	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Accruing Loans and Leases Past Due 90 Days or More	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	27	 	$	-	 	$	1	 	$	2	 	$	1	 	
Total Commercial	 	27	 	-	 	1	 	2	 	1	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	6,908	 	3,988	 	4,229	 	6,590	 	6,422	 	
Home Equity	 	2,701	 	2,755	 	2,445	 	2,829	 	2,194	 	
Automobile	 	186	 	154	 	98	 	124	 	170	 	
Other 1	 	587	 	578	 	395	 	543	 	435	 	
Total Consumer	 	10,382	 	7,475	 	7,167	 	10,086	 	9,221	 	
Total Accruing Loans and Leases Past Due 90 Days or More	 	$	10,409	 	$	7,475	 	$	7,168	 	$	10,088	 	$	9,222	 	
Restructured Loans on Accrual Status	 	 	 	 	 	 	 	 	 	 	 	
and Not Past Due 90 Days or More	 	$	31,844	 	$	31,426	 	$	31,124	 	$	29,539	 	$	33,703	 	
Total Loans and Leases	 	$	5,854,521	 	$	5,782,304	 	$	5,671,483	 	$	5,598,932	 	$	5,538,304	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	 	0.57%	 	0.64%	 	0.69%	 	0.68%	 	0.68%	
 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets to Total Loans and Leases, and Foreclosed Real Estate	 	0.63%	 	0.70%	 	0.73%	 	0.74%	 	0.74%	
 	 	 	 	 	 	 	 	 	 	 	
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases, and Commercial Foreclosed Real Estate	 	0.45%	 	0.46%	 	0.51%	 	0.53%	 	0.56%	
 	 	 	 	 	 	 	 	 	 	 	
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate	 	0.75%	 	0.84%	 	0.87%	 	0.87%	 	0.85%	
 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases, and Foreclosed Real Estate	 	0.81%	 	0.83%	 	0.86%	 	0.92%	 	0.90%	
 	 	 	 	 	 	 	 	 	 	 	 	
Quarter to Quarter Changes in Non-Performing Assets	 	 	 	 	 	 	 	 	 	 	 	
Balance at Beginning of Quarter	 	$	40,284	 	$	41,494	 	$	41,406	 	$	40,790	 	$	37,770	 	
Additions	 	3,837	 	2,878	 	7,574	 	5,334	 	8,653	 	
Reductions	 	 	 	 	 	 	 	 	 	 	 	
Payments	 	(3,994	)	(2,408	)	(2,942	)	(2,524	)	(1,173	)	
Return to Accrual Status	 	(728	)	(1,083	)	(2,085	)	(535	)	(2,421	)	
Sales of Foreclosed Real Estate	 	(1,354	)	(424	)	(2,247	)	(1,049	)	(1,320	)	
Charge-offs/Write-downs	 	(962	)	(173	)	(212	)	(610	)	(719	)	
Total Reductions	 	(7,038	)	(4,088	)	(7,486	)	(4,718	)	(5,633	)	
Balance at End of Quarter	 	$	37,083	 	$	40,284	 	$	41,494	 	$	41,406	 	$	40,790	 	

1  Comprised of other revolving credit, installment, and lease financing.
 
20

 
Bank of Hawaii Corporation and Subsidiaries	 	 	 	
 	 	 	 	
Reserve for Credit Losses	 	Table 12	 	
 
 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	2012	 	2011	 	
Balance at Beginning of Period	 	$	136,390	 	$	137,862	 	$	148,829	 	$	144,025	 	$	152,777	 	
Loans and Leases Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(589	)	(519	)	(733	)	(3,617	)	(8,112	)	
Construction	 	-	 	-	 	-	 	(330	)	-	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	(831	)	(628	)	(2,888	)	(4,408	)	(8,174	)	
Home Equity	 	(1,558	)	(1,061	)	(3,714	)	(6,717	)	(10,853	)	
Automobile	 	(646	)	(472	)	(688	)	(2,082	)	(3,229	)	
Other1	 	(1,806	)	(2,354	)	(1,585	)	(7,005	)	(6,392	)	
Total Loans and Leases Charged-Off	 	(5,430	)	(5,034	)	(9,608	)	(24,159	)	(36,760	)	
Recoveries on Loans and Leases Previously Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	904	 	578	 	469	 	3,939	 	2,434	 	
Commercial Mortgage	 	19	 	14	 	8	 	67	 	538	 	
Construction	 	5	 	3	 	-	 	8	 	-	 	
Lease Financing	 	11	 	83	 	29	 	177	 	3,528	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	1,039	 	739	 	531	 	2,820	 	2,152	 	
Home Equity	 	342	 	258	 	469	 	1,335	 	1,695	 	
Automobile	 	478	 	433	 	528	 	1,931	 	2,479	 	
Other1	 	518	 	1,454	 	551	 	3,154	 	2,492	 	
Total Recoveries on Loans and Leases Previously	 	 	 	 	 	 	 	 	 	 	 	
Charged-Off	 	3,316	 	3,562	 	2,585	 	13,431	 	15,318	 	
Net Loans and Leases Charged-Off	 	(2,114	)	(1,472	)	(7,023	)	(10,728	)	(21,442	)	
Provision for Credit Losses	 	-	 	-	 	2,219	 	979	 	12,690	 	
Balance at End of Period2	 	$	134,276	 	$	136,390	 	$	144,025	 	$	134,276	 	$	144,025	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Components	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	128,857	 	$	130,971	 	$	138,606	 	$	128,857	 	$	138,606	 	
Reserve for Unfunded Commitments	 	5,419	 	5,419	 	5,419	 	5,419	 	5,419	 	
Total Reserve for Credit Losses	 	$	134,276	 	$	136,390	 	$	144,025	 	$	134,276	 	$	144,025	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases Outstanding	 	$	5,798,057	 	$	5,716,421	 	$	5,420,352	 	$	5,680,279	 	$	5,349,938	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)	 	0.15%	 	0.10%	 	0.51%	 	0.19%	 	0.40%	 	
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding	 	2.20%	 	2.27%	 	2.50%	 	2.20%	 	2.50%	 	

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.
 
21

 
Bank of Hawaii Corporation and Subsidiaries	 	 	 	
 	 	 	 	
Business Segments Selected Financial Information	 	Table 13a	 	
 
 	 	Retail	 	Commercial	 	Investment	 	Treasury	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	and Other	 	Total	 	
Three Months Ended December 31, 2012	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	38,487	 	$	30,842	 	$	2,955	 	$	18,026	 	$	90,310	 	
Provision for Credit Losses	 	2,403	 	(219	)	(70	)	(2,114	)	-	 	
Net Interest Income After Provision for Credit Losses	 	36,084	 	31,061	 	3,025	 	20,140	 	90,310	 	
Noninterest Income	 	25,664	 	8,764	 	15,347	 	3,207	 	52,982	 	
Noninterest Expense	 	(44,403	)	(22,863	)	(13,438	)	(2,752	)	(83,456	)	
Income Before Provision for Income Taxes	 	17,345	 	16,962	 	4,934	 	20,595	 	59,836	 	
Provision for Income Taxes	 	(6,418	)	(5,838	)	(1,825	)	(5,468	)	(19,549	)	
Net Income	 	10,927	 	11,124	 	3,109	 	15,127	 	40,287	 	
Total Assets as of December 31, 2012	 	$	3,365,123	 	$	2,497,642	 	$	190,383	 	$	7,675,224	 	$	13,728,372	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended December 31, 20111	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	42,333	 	$	33,727	 	$	3,784	 	$	16,402	 	$	96,246	 	
Provision for Credit Losses	 	7,236	 	(212	)	(1	)	(4,804	)	2,219	 	
Net Interest Income After Provision for Credit Losses	 	35,097	 	33,939	 	3,785	 	21,206	 	94,027	 	
Noninterest Income	 	17,513	 	8,907	 	13,636	 	3,351	 	43,407	 	
Noninterest Expense	 	(45,447	)	(22,572	)	(14,124	)	(2,239	)	(84,382	)	
Income Before Provision for Income Taxes	 	7,163	 	20,274	 	3,297	 	22,318	 	53,052	 	
Provision for Income Taxes	 	(2,651	)	(7,070	)	(1,219	)	(2,883	)	(13,823	)	
Net Income	 	4,512	 	13,204	 	2,078	 	19,435	 	39,229	 	
Total Assets as of December 31, 20111	 	$	3,147,765	 	$	2,337,214	 	$	218,088	 	$	8,143,324	 	$	13,846,391	 	

1 Certain prior period information has been reclassified to conform to current presentation.
 
22

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Business Segments Selected Financial Information	Table 13b	 	
 
 	 	Retail	 	Commercial	 	Investment	 	Treasury	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	and Other	 	Total	 	
Year Ended December 31, 2012	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	156,911	 	 	$	123,911	 	 	$	12,448	 	 	$	84,001	 	 	$	377,271	 	 	
Provision for Credit Losses	 	11,443	 	 	(909	)	 	196	 	 	(9,751	)	 	979	 	 	
Net Interest Income After Provision for Credit Losses	 	145,468	 	 	124,820	 	 	12,252	 	 	93,752	 	 	376,292	 	 	
Noninterest Income	 	93,482	 	 	37,580	 	 	57,454	 	 	11,770	 	 	200,286	 	 	
Noninterest Expense	 	(179,580	)	 	(90,110	)	 	(55,543	)	 	(9,055	)	 	(334,288	)	 	
Income Before Provision for Income Taxes	 	59,370	 	 	72,290	 	 	14,163	 	 	96,467	 	 	242,290	 	 	
Provision for Income Taxes	 	(21,967	)	 	(20,941	)	 	(5,240	)	 	(28,066	)	 	(76,214	)	 	
Net Income	 	37,403	 	 	51,349	 	 	8,923	 	 	68,401	 	 	166,076	 	 	
Total Assets as of December 31, 2012	 	$	3,365,123	 	 	$	2,497,642	 	 	$	190,383	 	 	$	7,675,224	 	 	$	13,728,372	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Year Ended December 31, 2011 1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	173,979	 	 	$	137,354	 	 	$	15,137	 	 	$	63,738	 	 	$	390,208	 	 	
Provision for Credit Losses	 	22,341	 	 	(938	)	 	64	 	 	(8,777	)	 	12,690	 	 	
Net Interest Income After Provision for Credit Losses	 	151,638	 	 	138,292	 	 	15,073	 	 	72,515	 	 	377,518	 	 	
Noninterest Income	 	84,008	 	 	37,132	 	 	59,891	 	 	16,624	 	 	197,655	 	 	
Noninterest Expense	 	(186,567	)	 	(93,935	)	 	(59,180	)	 	(8,511	)	 	(348,193	)	 	
Income Before Provision for Income Taxes	 	49,079	 	 	81,489	 	 	15,784	 	 	80,628	 	 	226,980	 	 	
Provision for Income Taxes	 	(18,160	)	 	(28,286	)	 	(5,841	)	 	(14,650	)	 	(66,937	)	 	
Net Income	 	30,919	 	 	53,203	 	 	9,943	 	 	65,978	 	 	160,043	 	 	
Total Assets as of December 31, 2011 1	 	$	3,147,765	 	 	$	2,337,214	 	 	$	218,088	 	 	$	8,143,324	 	 	$	13,846,391	 	 	

1 Certain prior period information has been reclassified to conform to current presentation.
 
23

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Selected Quarterly Financial Data	Table 14	 	
 
 	 	Three Months Ended	 	
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands, except per share amounts)	 	2012	 	2012	 	2012	 	2012	 	2011	 	
Quarterly Operating Results	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	64,627	 	 	$	64,668	 	 	$	63,910	 	 	$	64,691	 	 	$	64,760	 	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	15,349	 	 	15,922	 	 	16,988	 	 	17,713	 	 	19,107	 	 	
Held-to-Maturity	 	20,253	 	 	23,232	 	 	25,054	 	 	26,413	 	 	23,608	 	 	
Deposits	 	3	 	 	3	 	 	1	 	 	2	 	 	2	 	 	
Funds Sold	 	180	 	 	105	 	 	119	 	 	129	 	 	120	 	 	
Other	 	283	 	 	283	 	 	281	 	 	280	 	 	280	 	 	
Total Interest Income	 	100,695	 	 	104,213	 	 	106,353	 	 	109,228	 	 	107,877	 	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	2,753	 	 	2,931	 	 	3,219	 	 	3,473	 	 	3,736	 	 	
Securities Sold Under Agreements to Repurchase	 	7,158	 	 	7,185	 	 	7,250	 	 	7,304	 	 	7,392	 	 	
Funds Purchased	 	4	 	 	7	 	 	5	 	 	5	 	 	5	 	 	
Long-Term Debt	 	470	 	 	458	 	 	498	 	 	498	 	 	498	 	 	
Total Interest Expense	 	10,385	 	 	10,581	 	 	10,972	 	 	11,280	 	 	11,631	 	 	
Net Interest Income	 	90,310	 	 	93,632	 	 	95,381	 	 	97,948	 	 	96,246	 	 	
Provision for Credit Losses	 	-    	 	 	-    	 	 	628	 	 	351	 	 	2,219	 	 	
Net Interest Income After Provision for Credit Losses	 	90,310	 	 	93,632	 	 	94,753	 	 	97,597	 	 	94,027	 	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	12,066	 	 	11,050	 	 	11,195	 	 	10,918	 	 	11,025	 	 	
Mortgage Banking	 	11,268	 	 	11,745	 	 	7,581	 	 	5,050	 	 	3,401	 	 	
Service Charges on Deposit Accounts	 	9,459	 	 	9,346	 	 	9,225	 	 	9,591	 	 	9,606	 	 	
Fees, Exchange, and Other Service Charges	 	12,333	 	 	11,907	 	 	12,326	 	 	12,399	 	 	12,401	 	 	
Investment Securities Gains (Losses), Net	 	-   	 	 	13	 	 	-   	 	 	(90	)	 	282	 	 	
Insurance	 	2,550	 	 	2,326	 	 	2,399	 	 	2,278	 	 	2,312	 	 	
Other	 	5,306	 	 	5,987	 	 	4,122	 	 	7,936	 	 	4,380	 	 	
Total Noninterest Income	 	52,982	 	 	52,374	 	 	46,848	 	 	48,082	 	 	43,407	 	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	46,116	 	 	47,231	 	 	44,037	 	 	47,024	 	 	44,927	 	 	
Net Occupancy	 	11,867	 	 	10,524	 	 	10,058	 	 	10,516	 	 	11,253	 	 	
Net Equipment	 	4,705	 	 	4,523	 	 	4,669	 	 	5,826	 	 	4,748	 	 	
Professional Fees	 	2,611	 	 	2,494	 	 	2,386	 	 	2,132	 	 	1,926	 	 	
FDIC Insurance	 	1,892	 	 	1,822	 	 	2,088	 	 	2,071	 	 	2,027	 	 	
Other	 	16,265	 	 	18,284	 	 	17,509	 	 	17,638	 	 	19,501	 	 	
Total Noninterest Expense	 	83,456	 	 	84,878	 	 	80,747	 	 	85,207	 	 	84,382	 	 	
Income Before Provision for Income Taxes	 	59,836	 	 	61,128	 	 	60,854	 	 	60,472	 	 	53,052	 	 	
Provision for Income Taxes	 	19,549	 	 	19,896	 	 	20,107	 	 	16,662	 	 	13,823	 	 	
Net Income	 	$	40,287	 	 	$	41,232	 	 	$	40,747	 	 	$	43,810	 	 	$	39,229	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic Earnings Per Share	 	$0.90	 	 	$0.92	 	 	$0.90	 	 	$0.96	 	 	$0.85	 	 	
Diluted Earnings Per Share	 	$0.90	 	 	$0.92	 	 	$0.90	 	 	$0.95	 	 	$0.85	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	$	5,854,521	 	 	$	5,782,304	 	 	$	5,671,483	 	 	$	5,598,932	 	 	$	5,538,304	 	 	
Total Assets	 	13,728,372	 	 	13,382,425	 	 	13,915,626	 	 	13,759,409	 	 	13,846,391	 	 	
Total Deposits	 	11,529,482	 	 	11,220,547	 	 	11,547,993	 	 	10,621,170	 	 	10,592,623	 	 	
Total Shareholders’ Equity	 	1,021,665	 	 	1,024,562	 	 	1,003,825	 	 	995,897	 	 	1,002,667	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.19	 	%	1.22	 	%	1.19	 	%	1.29	 	%	1.17	 	%	
Return on Average Shareholders’ Equity	 	15.47	 	 	16.02	 	 	16.19	 	 	17.26	 	 	15.23	 	 	
Efficiency Ratio1	 	58.24	 	 	58.13	 	 	56.77	 	 	58.35	 	 	60.42	 	 	
Net Interest Margin2	 	2.87	 	 	2.98	 	 	2.98	 	 	3.06	 	 	3.04	 	 	
 
1  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
2  Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
 
24

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Hawaii Economic Trends	Table 15	
 
 	 	Eleven Months Ended	 	Year Ended	 	 	
($ in millions; jobs in thousands)	 	November 30, 2012	 	December 31, 2011	 	 	December 31, 2010	 	 	
Hawaii Economic Trends	 	 	 	 	 	 	 	 	 	 	 	 	 	
State General Fund Revenues  1	 	$	4,814.8	 	13.0	%	 	$	4,662.5	8.1	%	$	4,314.1	7.4	 	%	
General Excise and Use Tax Revenue  1	 	$	2,620.0	 	9.9	 	 	$	2,588.5	8.8	 	$	2,379.9	3.6	 	 	
Jobs2	 	609.6	 	 	 	 	618.7	 	 	614.1	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	December 31,	 	September 30,	 	December 31,	 	
(spot rates)	 	2012	 	2012	 	2011	 	2010	 	2009	 	
Unemployment 3	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Statewide, seasonally adjusted	 	5.2	 	%	5.7	 	%	6.2	%	6.3	 	%	6.9	 	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Oahu	 	4.3	 	 	5.0	 	 	5.4	 	4.8	 	 	5.4	 	 	
Island of Hawaii	 	6.9	 	 	7.9	 	 	8.9	 	8.6	 	 	9.5	 	 	
Maui	 	5.2	 	 	6.0	 	 	7.1	 	7.4	 	 	8.8	 	 	
Kauai	 	6.0	 	 	6.8	 	 	7.8	 	7.8	 	 	8.7	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	December 31,	 	September 30,	 	December 31,	 	
(percentage change, except months of inventory)	 	2012	 	2012	 	2011	 	2010	 	2009	 	
Housing Trends (Single Family Oahu) 4	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Median Home Price	 	7.8	 	%	8.8	 	%	(3.0	)	%	3.1	 	%	(7.3	)	%	
Home Sales Volume (units)	 	6.5	 	%	3.5	 	%	(2.7	)	%	13.4	 	%	(1.8	)	%	
Months of Inventory	 	2.5	 	 	3.3	 	 	4.8	 	 	6.0	 	 	6.8	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Monthly Visitor Arrivals,	 	Percentage Change	 	 	
(in thousands)	 	Seasonally Adjusted	 	from Previous Month	 	 	
Tourism5	 	 	 	 	 	 	
 	 	 	 	 	 	 	
October 31, 2012	 	648.9	 	1.3	 	%	
September 30, 2012	 	640.9	 	(2.6	)	 	
August 31, 2012	 	657.8	 	3.6	 	 	
July 31, 2012	 	634.9	 	(1.9	)	 	
June 30, 2012	 	647.2	 	(0.8	)	 	
May 30, 2012	 	652.4	 	2.7	 	 	
April 30, 2012	 	635.0	 	(4.8	)	 	
March 31, 2012	 	666.7	 	4.9	 	 	
February 29, 2012	 	635.5	 	(2.4	)	 	
January 31, 2012	 	651.1	 	3.1	 	 	
December 31, 2011	 	631.3	 	2.6	 	 	
November 30, 2011	 	615.2	 	1.7	 	 	
October 31, 2011	 	604.8	 	(1.2	)	 	
September 30, 2011	 	612.0	 	3.8	 	 	
August 31, 2011	 	589.8	 	0.9	 	 	
July 31, 2011	 	584.3	 	1.3	 	 	
June 30, 2011	 	577.0	 	(0.1	)	 	
May 31, 2011	 	577.8	 	(0.7	)	 	
April 30, 2011	 	581.9	 	(0.9	)	 	
March 31, 2011	 	587.4	 	(3.0	)	 	
February 28, 2011	 	605.5	 	(0.3	)	 	
January 31, 2011	 	607.5	 	2.5	 	 	
December 31, 2010	 	592.6	 	-   	 	 	
November 30, 2010	 	592.9	 	(1.5	)	 	

 
1 Source:  Hawaii Department of Business, Economic Development & Tourism.
 
2 Source:  U. S. Bureau of Labor
 
3 Source:  Hawaii Department of Labor and Industrial Relations
 
4 Source:  Honolulu Board of REALTORS.
 
5 Source:  University of Hawaii Economic Research Organization.
 
Note:  Certain prior period seasonally adjusted information has been revised.
 
25