Financial Release

• 2018 Earnings $5.23 Per Diluted Share
• 2018 Net Income $219.6 Million
• Diluted Earnings Per Share $1.30 for the Fourth Quarter of 2018
• Net Income $53.9 Million for the Fourth Quarter of 2018
• Board of Directors Declares Dividend of $0.62 Per Share
• Board of Directors Authorizes Increase in Share Repurchase of $130.0 Million

HONOLULU--(BUSINESS WIRE)--Jan. 28, 2019-- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $5.23 for the full year of 2018, up 20.8 percent from diluted earnings per share of $4.33 in 2017. Net income for the year was $219.6 million, up $34.9 million or 18.9 percent from net income of $184.7 million in the previous year. The return on average assets for the full year of 2018 increased to 1.29 percent compared with 1.10 percent in 2017. The return on average equity for the full year of 2018 increased to 17.63 percent compared with 15.27 percent in 2017.

“Bank of Hawaii finished 2018 with solid financial performance,” said Peter Ho, Chairman, President, and CEO. “During the year our loan and deposit balances continued to grow and our net interest margin expanded. Our asset quality, capital and liquidity all remained strong. During the fourth quarter we completed the sale of our MyBankoh Rewards Credit Card portfolio in order to focus on our co-branded Hawaiian Airlines Bank of Hawaii World Elite Mastercard program.”

Diluted earnings per share were $1.30 for the fourth quarter of 2018, down from $1.36 in the third quarter of 2018 and up from $1.01 in the fourth quarter of 2017. Net income for the fourth quarter of 2018 was $53.9 million, down from $56.9 million in the previous quarter and up from $43.0 million in the same quarter last year. The return on average assets for the fourth quarter of 2018 was 1.26 percent, compared with 1.33 percent in the third quarter of 2018 and 1.00 percent in the fourth quarter last year. The return on average equity for the fourth quarter of 2018 was 17.05 percent compared with 18.06 percent in the third quarter of 2018 and 13.85 percent in the fourth quarter last year.

Financial Highlights

Net interest income, on a taxable-equivalent basis, was $491.5 million for the full year of 2018, an increase of $22.4 million from net interest income of $469.1 million in 2017. Net interest income, on a taxable-equivalent basis, for the fourth quarter of 2018 was $125.2 million, an increase of $1.0 million compared with net interest income of $124.2 million in the third quarter of 2018 and up $3.6 million compared with net interest income of $121.6 million in the fourth quarter last year. Analyses of changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin for the full year of 2018 was 3.05 percent, an increase of 12 basis points from the net interest margin of 2.93 percent in 2017. The net interest margin was 3.10 percent in the fourth quarter of 2018, an increase of 3 basis points from the third quarter of 2018 and 12 basis points from the fourth quarter last year. The sale of the credit card portfolio in the fourth quarter of 2018 resulted in a decrease of 2 basis points in the fourth quarter net interest margin.

The provision for credit losses for the full year of 2018 was $13.4 million compared with a provision for credit losses of $16.9 million in 2017. Results for the fourth quarter of 2018 included a provision for credit losses of $2.0 million compared with $3.8 million in the previous quarter and $4.3 million in the same quarter last year.

Noninterest income for the full year of 2018 was $168.9 million compared with noninterest income of $185.4 million in 2017. Results for 2017 included a gain of $12.5 million on the sale of Visa Class B shares compared with a charge of $1.0 million for the adjustment to the conversions ratio in 2018 and $0.9 million in higher fees related to the Visa Class B shares sold. Excluding the Visa sale, the decrease from the previous year was primarily due to a decline in mortgage banking income and service charges on deposits that were partially offset by a gain resulting from a low-income housing investment sale and distribution. Noninterest income was $42.1 million in the fourth quarter of 2018 compared with noninterest income of $41.5 million in the third quarter of 2018 and noninterest income of $41.9 million in the fourth quarter of 2017.

Noninterest expense for the full year of 2018 was $371.6 million compared with noninterest expense of $357.7 million in 2017. Noninterest expense was $95.9 million in the fourth quarter of 2018 and included $4.1 million in one-time significant items related to employee separation, a medical expense, an operational loss, and legal expenses. Noninterest expense was $90.5 million in the third quarter of 2018. There were no significant items in noninterest expense during the third quarter of 2018. Noninterest expense was $92.3 million in the fourth quarter of 2017 and included one-time employee bonuses totaling $2.2 million, including payroll taxes. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The efficiency ratio for the full year of 2018 was 56.71 percent compared with 55.66 percent in 2017. The efficiency ratio for the fourth quarter of 2018 was 57.75 percent compared with 55.07 percent in the previous quarter and 57.49 percent in the same quarter last year.

The effective tax rate for the full year of 2018 was 18.73 percent. The effective tax rate for the full year of 2017 was 31.11 percent, which included a one-time adjustment in the fourth quarter of $3.6 million related to the Tax Cuts and Jobs Act. Excluding this expense, the effective tax rate for the full year of 2017 was 29.78 percent. The lower effective tax rate in 2018 was primarily due to the reduction in the federal corporate tax rate as a result of the tax reform bill. The effective tax rate for the fourth quarter of 2018 was 20.92 percent compared with 18.75 percent in the previous quarter and 32.93 percent during the same quarter last year.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services and Private Banking, and Treasury & Other. Results are determined based on the Company’s internal financial management reporting process and organizational structure. Selected financial information for the business segments is included in Tables 13a and 13b.

Asset Quality

The Company’s overall asset quality continued to remain strong during the fourth quarter of 2018. Total non-performing assets were $12.9 million at December 31, 2018 compared with $13.8 million at September 30, 2018 and $16.1 million at December 31, 2017. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.12 percent at December 31, 2018 compared with 0.13 percent at September 30, 2018 and 0.16 percent at December 31, 2017.

Accruing loans and leases past due 90 days or more were $6.6 million at December 31, 2018 compared with $8.1 million at September 30, 2018 and $7.1 million at December 31, 2017. Restructured loans and leases not included in non-accrual loans or accruing loans past due 90 days or more declined to $48.7 million at December 31, 2018 compared with $49.5 million at September 30, 2018 and $55.7 million at December 31, 2017. 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 for the full year of 2018 were $14.1 million or 0.14 percent of total average loans and leases compared with net charge-offs of $13.8 million or 0.15 percent of total average loans and leases in 2017. Net charge-offs during the fourth quarter of 2018 were $4.0 million or 0.15 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $6.9 million partially offset by recoveries of $2.9 million. Net charge-offs during the third quarter of 2018 were $3.3 million or 0.13 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $6.0 million and recoveries of $2.7 million. Net charge-offs during the fourth quarter of 2017 were $3.8 million or 0.15 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $5.8 million and recoveries of $2.1 million.

The allowance for loan and lease losses was $106.7 million at December 31, 2018, a decrease from $108.7 million at September 30, 2018 and $107.3 million at December 31, 2017. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.02 percent at December 31, 2018, a decrease of 4 basis points from September 30, 2018 and 8 basis points from December 31, 2017. The reduction in the provision for the allowance for loan and lease losses compared with the net charge-offs during the fourth quarter of 2018 was largely due to the release of credit loss reserves related to the credit card portfolio. The total reserve for unfunded commitments of $6.8 million at December 31, 2018 was unchanged from the prior quarter and the same quarter last year. Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets were $17.1 billion at December 31, 2018, an increase of $152.2 million from total assets of $17.0 billion at September 30, 2018 and an increase of $54.9 million from total assets of $17.1 billion at December 31, 2017. Average total assets were $17.0 billion during the fourth quarter of 2018, a decrease of $26.8 million compared with average total assets of $17.0 billion during the previous quarter and a decrease of $96.0 million compared with average total assets of $17.1 billion during the same quarter last year.

The investment securities portfolio was $5.5 billion at December 31, 2018, a decrease of $224.1 million from total securities of $5.7 billion at September 30, 2018 and a decrease of $671.1 million from total securities of $6.2 billion at December 31, 2017. The investment securities portfolio remains largely comprised of securities issued by U.S. government agencies and included $3.5 billion in securities held to maturity and $2.0 billion in securities available for sale at December 31, 2018.

Total loans and leases increased to $10.4 billion at December 31, 2018, an increase of $217.7 million or 2.1 percent from total loans and leases of $10.2 billion at September 30, 2018 and up $651.8 million or 6.7 percent from total loans and leases of $9.8 billion at December 31, 2017. The commercial portfolio increased to $4.0 billion at the end of the fourth quarter of 2018, up $79.5 million or 2.0 percent from commercial loans of $3.9 billion at the end of the third quarter of 2018 and up $213.3 million or 5.7 percent from commercial loans of $3.8 billion at the end of the fourth quarter last year. Consumer loans grew to $6.5 billion at December 31, 2018, up $138.2 million or 2.2 percent from consumer loans of $6.3 billion at the end of the third quarter of 2018 and up $438.5 million or 7.3 percent from consumer loans of $6.0 billion at the end of the fourth quarter last year. The previously mentioned sale of the credit card portfolio during the fourth quarter of 2018 reduced the consumer loan portfolio by $51.6 million in outstanding balances. Average total loans and leases were $10.3 billion during the fourth quarter of 2018, an increase of 2.4 percent from average loans and leases of $10.1 billion during the previous quarter and up 6.5 percent from average loans and leases of $9.7 billion during the same quarter last year. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $15.0 billion at December 31, 2018, up $183.9 million or 1.2 percent from total deposits of $14.8 billion at September 30, 2018 and up $143.3 million or 1.0 percent from total deposits of $14.9 billion at December 31, 2017. Consumer deposits increased to $7.7 billion at December 31, 2018, up $99.2 million or 1.3 percent from consumer deposits of $7.6 billion at the end of the third quarter of 2018 and up $248.5 million or 3.3 percent from $7.5 billion at the end of the fourth quarter last year. Commercial deposits increased to $6.1 billion at the end of the fourth quarter of 2018, up $130.8 million or 2.2 percent from $6.0 billion at the end of the third quarter of 2018 and up $124.4 million or 2.1 percent from $6.0 billion at the end of the fourth quarter last year. Other deposits, including public funds, were $1.2 billion at December 31, 2018, down slightly from $1.2 billion at September 30, 2018 and down from $1.4 billion at December 31, 2017 largely due to the strategic decision to continue the reduction of public time deposits. Average total deposits were $14.8 billion during the fourth quarter of 2018, a decrease of $41.0 million compared with average total deposits of $14.8 billion during the previous quarter and a decrease of $33.7 million compared with average total deposits of $14.8 billion during the same quarter last year. Deposit balances are summarized in Tables 7a, 7b, and 10.

During the fourth quarter of 2018, the Company repurchased 325.4 thousand shares of common stock at a total cost of $24.9 million under its share repurchase program. The average cost was $76.63 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through December 31, 2018, the Company has repurchased 55.3 million shares and returned nearly $2.2 billion to shareholders at an average cost of $39.14 per share. From January 2 through January 25, 2019 the Company repurchased an additional 178.0 thousand shares of common stock at an average cost of $72.68 per share repurchased. The Company’s Board of Directors increased the authorization under the share repurchase program by an additional $130.0 million. Remaining buyback authority under the share repurchase program was $148.8 million at January 25, 2019.

Total shareholders’ equity was $1.27 billion at December 31, 2018, up from $1.25 billion at September 30, 2018, and up from $1.23 billion at December 31, 2017. The Tier 1 Capital Ratio was 13.07 percent at December 31, 2018 compared with 13.20 percent at September 30, 2018 and 13.24 percent at December 31, 2017. The Tier 1 Leverage Ratio at December 31, 2018 was 7.60 percent compared with 7.55 percent at September 30, 2018 and 7.26 percent at December 31, 2017.

The Company’s Board of Directors declared a quarterly cash dividend of $0.62 per share on the Company’s outstanding shares. The dividend will be payable on March 14, 2019 to shareholders of record at the close of business on February 28, 2019.

Hawaii Economy

General economic conditions in Hawaii remained healthy during 2018, led by record-high visitors, low unemployment, rising real estate prices, and an active construction industry. For the first eleven months of 2018 total visitor arrivals increased 6.1 percent and visitor spending increased 8.0 percent compared to the same period in 2017. The statewide seasonally-adjusted unemployment rate remains low at 2.5 percent in December 2018 compared with 3.9 percent nationally.

Real estate prices on Oahu remained strong during 2018. The volume of single-family home and condominium sales on Oahu decreased compared with 2017, with single-family home sales down 7.7 percent and condominium sales down 2.5 percent. The median sales prices continued to increase during the year, with the median sales price of a single-family home in 2018 up 4.6 percent and the median sales price of a condominium up 3.7 percent compared with 2017. As of December 31, 2018, months of inventory of single-family homes and condominiums on Oahu were 2.8 months and 2.9 months, respectively. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its 2018 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 website, www.boh.com. The toll-free number is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, January 28, 2019. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the pass code 6070839 when prompted. In addition, a replay will be available on the Company’s website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain “forward-looking statements”, such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation’s Annual Report on Form 10-K for the year ended December 31, 2017, 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 an independent 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.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 1
		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,
(dollars in thousands, except per share amounts)		2018				2018				2017				2018				2017
For the Period:
Operating Results
Net Interest Income		$	123,973			$	122,927			$	118,770			$	486,352			$	457,238
Provision for Credit Losses			2,000				3,800				4,250				13,425				16,900
Total Noninterest Income			42,108				41,482				41,855				168,923				185,417
Total Noninterest Expense			95,911				90,538				92,336				371,624				357,691
Net Income			53,911				56,933				42,953				219,602				184,672
Basic Earnings Per Share			1.30				1.37				1.02				5.26				4.37
Diluted Earnings Per Share			1.30				1.36				1.01				5.23				4.33
Dividends Declared Per Share			0.62				0.60				0.52				2.34				2.04
Performance Ratios
Return on Average Assets			1.26	%			1.33	%			1.00	%			1.29	%			1.10	%
Return on Average Shareholders' Equity			17.05				18.06				13.85				17.63				15.27
Efficiency Ratio 1			57.75				55.07				57.49				56.71				55.66
Net Interest Margin 2			3.10				3.07				2.98				3.05				2.93
Dividend Payout Ratio 3			47.69				43.80				50.98				44.49				46.68
Average Shareholders' Equity to Average Assets			7.39				7.35				7.20				7.34				7.22
Average Balances
Average Loans and Leases		$	10,320,051			$	10,081,886			$	9,688,710			$	10,043,661			$	9,346,828
Average Assets			16,988,550				17,015,340				17,084,596				16,970,992				16,749,230
Average Deposits			14,779,511				14,820,480				14,813,218				14,757,724				14,505,423
Average Shareholders' Equity			1,254,704				1,250,500				1,230,564				1,245,672				1,209,087
Per Share of Common Stock
Book Value		$	30.56			$	29.98			$	29.05			$	30.56			$	29.05
Tangible Book Value			29.80				29.22				28.31				29.80				28.31
Market Value
Closing			67.32				78.91				85.70				67.32				85.70
High			82.80				86.53				88.38				89.09				90.80
Low			63.64				78.30				77.71				63.64				74.72
										December 31,				September 30,				December 31,
										2018				2018				2017
As of Period End:
Balance Sheet Totals
Loans and Leases										$	10,448,774			$	10,231,062			$	9,796,947
Total Assets											17,143,974				16,991,734				17,089,052
Total Deposits											15,027,242				14,843,335				14,883,968
Other Debt											135,643				185,662				260,716
Total Shareholders' Equity											1,268,200				1,253,327				1,231,868
Asset Quality
Non-Performing Assets										$	12,930			$	13,798			$	16,120
Allowance for Loan and Lease Losses											106,693				108,690				107,346
Allowance to Loans and Leases Outstanding											1.02	%			1.06	%			1.10	%
Capital Ratios
Common Equity Tier 1 Capital Ratio											13.07	%			13.20	%			13.24	%
Tier 1 Capital Ratio											13.07				13.20				13.24
Total Capital Ratio											14.21				14.38				14.46
Tier 1 Leverage Ratio											7.60				7.55				7.26
Total Shareholders' Equity to Total Assets											7.40				7.38				7.21
Tangible Common Equity to Tangible Assets 4											7.23				7.20				7.04
Tangible Common Equity to Risk-Weighted Assets 4											12.52				12.56				12.84
Non-Financial Data
Full-Time Equivalent Employees											2,122				2,143				2,132
Branches											69				69				69
ATMs											382				382				387

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 to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 "Reconciliation of Non-GAAP Financial Measures."
Note: Common Equity Tier 1 and Tier 1 Capital Ratios were revised from 13.19% and Tangible Common Equity to Risk-Weighted Assets were revised from 12.55% as of September 30, 2018.

Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures												Table 2
				December 31,				September 30,				December 31,
(dollars in thousands)				2018				2018				2017
Total Shareholders' Equity				$	1,268,200			$	1,253,327			$	1,231,868
Less: Goodwill					31,517				31,517				31,517
Tangible Common Equity				$	1,236,683			$	1,221,810			$	1,200,351
Total Assets				$	17,143,974			$	16,991,734			$	17,089,052
Less: Goodwill					31,517				31,517				31,517
Tangible Assets				$	17,112,457			$	16,960,217			$	17,057,535
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements				$	9,878,904			$	9,731,082			$	9,348,296
Total Shareholders' Equity to Total Assets					7.40	%			7.38	%			7.21	%
Tangible Common Equity to Tangible Assets (Non-GAAP)					7.23	%			7.20	%			7.04	%
Tier 1 Capital Ratio					13.07	%			13.20	%			13.24	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)					12.52	%			12.56	%			12.84	%

Note: Risk-Weighted Assets was revised from $9,732,618, Tier 1 Capital Ratio was revised from 13.19%, and Tangible Common Equity to Risk-Weighted Assets was revised from 12.55% as of September 30, 2018.

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)		2018				2018				2017				2018				2017
Interest Income
Interest and Fees on Loans and Leases		$	107,404			$	104,248			$	96,974			$	410,597			$	370,441
Income on Investment Securities
Available-for-Sale			13,043				12,588				11,866				50,152				46,772
Held-to-Maturity			21,482				20,821				21,782				84,310				81,740
Deposits			10				10				3				34				15
Funds Sold			727				1,393				717				3,723				3,882
Other			352				364				271				1,357				944
Total Interest Income			143,018				139,424				131,613				550,173				503,794
Interest Expense
Deposits			13,172				10,931				6,980				41,143				22,332
Securities Sold Under Agreements to Repurchase			4,671				4,667				4,664				18,519				19,592
Funds Purchased			440				33				81				609				123
Short-Term Borrowings			88				28				-				145				64
Other Debt			674				838				1,118				3,405				4,445
Total Interest Expense			19,045				16,497				12,843				63,821				46,556
Net Interest Income			123,973				122,927				118,770				486,352				457,238
Provision for Credit Losses			2,000				3,800				4,250				13,425				16,900
Net Interest Income After Provision for Credit Losses			121,973				119,127				114,520				472,927				440,338
Noninterest Income
Trust and Asset Management			10,558				10,782				11,105				43,877				45,430
Mortgage Banking			2,148				1,965				2,593				8,437				12,949
Service Charges on Deposit Accounts			7,562				7,255				8,053				28,811				32,575
Fees, Exchange, and Other Service Charges			14,576				14,173				13,784				57,482				54,845
Investment Securities Gains (Losses), Net			(841	)			(729	)			(617	)			(3,938	)			10,430
Annuity and Insurance			1,409				1,360				1,273				5,822				6,858
Bank-Owned Life Insurance			1,941				1,620				1,609				7,199				6,517
Other			4,755				5,056				4,055				21,233				15,813
Total Noninterest Income			42,108				41,482				41,855				168,923				185,417
Noninterest Expense
Salaries and Benefits			54,856				51,782				51,698				213,208				203,729
Net Occupancy			8,918				8,702				8,510				34,742				32,536
Net Equipment			6,364				6,116				5,454				23,852				22,078
Data Processing			5,151				4,241				4,310				17,846				15,483
Professional Fees			2,467				2,206				3,266				9,992				11,681
FDIC Insurance			1,336				2,057				2,253				7,732				8,666
Other			16,819				15,434				16,845				64,252				63,518
Total Noninterest Expense			95,911				90,538				92,336				371,624				357,691
Income Before Provision for Income Taxes			68,170				70,071				64,039				270,226				268,064
Provision for Income Taxes			14,259				13,138				21,086				50,624				83,392
Net Income		$	53,911			$	56,933			$	42,953			$	219,602			$	184,672
Basic Earnings Per Share		$	1.30			$	1.37			$	1.02			$	5.26			$	4.37
Diluted Earnings Per Share		$	1.30			$	1.36			$	1.01			$	5.23			$	4.33
Dividends Declared Per Share		$	0.62			$	0.60			$	0.52			$	2.34			$	2.04
Basic Weighted Average Shares			41,325,456				41,620,776				42,116,452				41,714,770				42,280,931
Diluted Weighted Average Shares			41,601,649				41,899,401				42,450,191				41,999,399				42,607,057

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

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)			2018				2018				2017				2018				2017
Net Income			$	53,911			$	56,933			$	42,953			$	219,602			$	184,672
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities				11,169				(5,599	)			(10,430	)			(6,525	)			(1,986	)
Defined Benefit Plans				(2,974	)			216				738				(2,326	)			1,177
Other Comprehensive Income (Loss)				8,195				(5,383	)			(9,692	)			(8,851	)			(809	)
Comprehensive Income			$	62,106			$	51,550			$	33,261			$	210,751			$	183,863

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
		December 31,				September 30,				December 31,
(dollars in thousands)		2018				2018				2017
Assets
Interest-Bearing Deposits in Other Banks		$	3,028			$	3,725			$	3,421
Funds Sold			198,860				104,199				181,413
Investment Securities
Available-for-Sale			2,007,942				2,049,687				2,232,979
Held-to-Maturity (Fair Value of $3,413,994; $3,549,235; and $3,894,121)			3,482,092				3,664,487				3,928,170
Loans Held for Sale			10,987				18,063				19,231
Loans and Leases			10,448,774				10,231,062				9,796,947
Allowance for Loan and Lease Losses			(106,693	)			(108,690	)			(107,346	)
Net Loans and Leases			10,342,081				10,122,372				9,689,601
Total Earning Assets			16,044,990				15,962,533				16,054,815
Cash and Due from Banks			324,081				227,049				263,017
Premises and Equipment, Net			151,837				142,928				130,926
Accrued Interest Receivable			51,230				54,839				50,485
Foreclosed Real Estate			1,356				1,909				1,040
Mortgage Servicing Rights			24,310				24,463				24,622
Goodwill			31,517				31,517				31,517
Bank-Owned Life Insurance			283,771				282,637				280,034
Other Assets			230,882				263,859				252,596
Total Assets		$	17,143,974			$	16,991,734			$	17,089,052
Liabilities
Deposits
Noninterest-Bearing Demand		$	4,739,596			$	4,678,981			$	4,724,300
Interest-Bearing Demand			3,002,925				2,975,069				3,082,563
Savings			5,539,199				5,444,053				5,389,013
Time			1,745,522				1,745,232				1,688,092
Total Deposits			15,027,242				14,843,335				14,883,968
Short-Term Borrowings			199				629				-
Securities Sold Under Agreements to Repurchase			504,296				504,293				505,293
Other Debt			135,643				185,662				260,716
Retirement Benefits Payable			40,494				36,288				37,312
Accrued Interest Payable			8,253				7,689				6,946
Taxes Payable and Deferred Taxes			19,736				15,549				24,009
Other Liabilities			139,911				144,962				138,940
Total Liabilities			15,875,774				15,738,407				15,857,184
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: December 31, 2018 - 58,063,689 / 41,499,898; September 30, 2018 - 58,070,578 / 41,809,551; and December 31, 2017 - 57,959,074 / 42,401,443)			577				577				576
Capital Surplus			571,704				569,223				561,161
Accumulated Other Comprehensive Loss			(51,043	)			(59,238	)			(34,715	)
Retained Earnings			1,641,314				1,612,998				1,512,218
Treasury Stock, at Cost (Shares: December 31, 2018 - 16,563,791; September 30, 2018 - 16,261,027; and December 31, 2017 - 15,557,631)			(894,352	)			(870,233	)			(807,372	)
Total Shareholders' Equity			1,268,200				1,253,327				1,231,868
Total Liabilities and Shareholders' Equity		$	17,143,974			$	16,991,734			$	17,089,052

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																							Table 6
											Accum.
											Other
											Compre-
											hensive
		Common Shares			Common			Capital			Income				Retained				Treasury
(dollars in thousands)		Outstanding			Stock			Surplus			(Loss)				Earnings				Stock				Total
Balance as of December 31, 2016		42,635,978			$	576		$	551,628		$	(33,906	)		$	1,415,440			$	(772,201	)		$	1,161,537
Net Income		-				-			-			-				184,672				-				184,672
Other Comprehensive Loss		-				-			-			(809	)			-				-				(809	)
Share-Based Compensation		-				-			7,369			-				-				-				7,369
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits		337,091				-			2,164			-				(828	)			11,905				13,241
Common Stock Repurchased		(571,626	)			-			-			-				-				(47,076	)			(47,076	)
Cash Dividends Declared ($2.04 per share)		-				-			-			-				(87,066	)			-				(87,066	)
Balance as of December 31, 2017		42,401,443			$	576		$	561,161		$	(34,715	)		$	1,512,218			$	(807,372	)		$	1,231,868
Net Income		-				-			-			-				219,602				-				219,602
Other Comprehensive Loss		-				-			-			(8,851	)			-				-				(8,851	)
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from AOCI		-				-			-			(7,477	)			7,477				-				-
Share-Based Compensation		-				-			8,146			-				-				-				8,146
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits		219,210				1			2,397			-				513				5,008				7,919
Common Stock Repurchased		(1,120,755	)			-			-			-				-				(91,988	)			(91,988	)
Cash Dividends Declared ($2.34 per share)		-				-			-			-				(98,496	)			-				(98,496	)
Balance as of December 31, 2018		41,499,898			$	577		$	571,704		$	(51,043	)		$	1,641,314			$	(894,352	)		$	1,268,200

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, 2018									September 30, 2018									December 31, 2017
			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 in Other Banks			$	3.3		$	-		1.21	%		$	3.6		$	-		1.09	%		$	3.2		$	-		0.46	%
Funds Sold				128.2			0.7		2.22				281.9			1.4		1.93				221.0			0.7		1.27
Investment Securities
Available-for-Sale
Taxable				1,480.5			10.0		2.70				1,512.1			9.5		2.51				1,669.7			8.5		2.05
Non-Taxable				556.4			3.8		2.77				567.5			3.9		2.75				619.0			5.1		3.29
Held-to-Maturity
Taxable				3,360.5			20.0		2.38				3,413.7			19.3		2.26				3,775.6			20.3		2.15
Non-Taxable				235.1			1.9		3.16				236.1			1.9		3.16				239.0			2.3		3.87
Total Investment Securities				5,632.5			35.7		2.53				5,729.4			34.6		2.41				6,303.3			36.2		2.30
Loans Held for Sale				12.1			0.2		4.63				14.9			0.2		4.45				15.9			0.2		4.02
Loans and Leases 1
Commercial and Industrial				1,351.1			14.3		4.21				1,279.4			13.0		4.04				1,284.5			11.7		3.62
Commercial Mortgage				2,256.0			24.2		4.25				2,180.5			23.0		4.19				2,063.2			20.2		3.89
Construction				179.8			2.2		4.79				187.0			2.2		4.65				213.8			2.6		4.78
Commercial Lease Financing				173.2			1.0		2.42				175.0			1.0		2.30				202.6			1.3		2.56
Residential Mortgage				3,615.8			35.1		3.88				3,563.5			34.0		3.82				3,420.0			32.6		3.81
Home Equity				1,652.4			15.7		3.78				1,622.4			15.7		3.83				1,552.4			14.3		3.65
Automobile				641.8			6.0		3.73				606.3			5.9		3.84				516.3			5.8		4.43
Other 2				450.0			8.8		7.72				467.8			9.3		7.90				435.9			8.5		7.80
Total Loans and Leases				10,320.1			107.3		4.14				10,081.9			104.1		4.11				9,688.7			97.0		3.98
Other				36.8			0.4		3.82				38.9			0.4		3.74				40.6			0.3		2.67
Total Earning Assets 3				16,133.0			144.3		3.56				16,150.6			140.7		3.47				16,272.7			134.4		3.29
Cash and Due from Banks				234.3									252.1									229.5
Other Assets				621.3									612.6									582.4
Total Assets			$	16,988.6								$	17,015.3								$	17,084.6
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand			$	2,888.3			1.5		0.20			$	2,999.5			1.3		0.17			$	2,877.7			0.5		0.06
Savings				5,494.5			4.5		0.32				5,482.4			3.8		0.28				5,396.9			1.9		0.14
Time				1,800.7			7.2		1.59				1,683.0			5.8		1.37				1,767.9			4.6		1.03
Total Interest-Bearing Deposits				10,183.5			13.2		0.51				10,164.9			10.9		0.43				10,042.5			7.0		0.28
Short-Term Borrowings				89.6			0.5		2.31				11.6			0.1		2.06				25.0			0.1		1.27
Securities Sold Under Agreements to Repurchase				504.3			4.7		3.62				504.3			4.7		3.62				505.3			4.6		3.61
Other Debt				145.2			0.7		1.85				208.5			0.8		1.60				267.6			1.1		1.66
Total Interest-Bearing Liabilities				10,922.6			19.1		0.69				10,889.3			16.5		0.60				10,840.4			12.8		0.47
Net Interest Income						$	125.2								$	124.2								$	121.6
Interest Rate Spread									2.87	%								2.87	%								2.82	%
Net Interest Margin									3.10	%								3.07	%								2.98	%
Noninterest-Bearing Demand Deposits				4,596.0									4,655.6									4,770.7
Other Liabilities				215.3									219.9									242.9
Shareholders' Equity				1,254.7									1,250.5									1,230.6
Total Liabilities and Shareholders' Equity			$	16,988.6								$	17,015.3								$	17,084.6

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 21% for 2018 and 35% for 2017, of $1,263,000 for the three months ended December 31, 2018, $1,265,000 for the three months ended September 30, 2018, and $2,808,000 for the three months ended December 31, 2017.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																		Table 7b
			Year Ended									Year Ended
			December 31, 2018									December 31, 2017
			Average			Income/			Yield/			Average			Income/			Yield/
(dollars in millions)			Balance			Expense			Rate			Balance			Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks			$	3.2		$	-		1.05	%		$	3.4		$	-		0.45	%
Funds Sold				200.0			3.7		1.86				423.0			3.9		0.92
Investment Securities
Available-for-Sale
Taxable				1,537.7			37.6		2.44				1,659.3			33.1		2.00
Non-Taxable				577.9			15.9		2.76				643.7			21.0		3.27
Held-to-Maturity
Taxable				3,468.4			78.4		2.26				3,648.6			75.7		2.07
Non-Taxable				236.5			7.5		3.17				240.4			9.3		3.88
Total Investment Securities				5,820.5			139.4		2.39				6,192.0			139.1		2.25
Loans Held for Sale				14.0			0.6		4.31				22.6			0.9		3.99
Loans and Leases 1
Commercial and Industrial				1,304.8			51.9		3.98				1,262.8			44.5		3.52
Commercial Mortgage				2,164.6			89.7		4.14				1,977.1			75.7		3.83
Construction				184.9			8.6		4.68				238.4			11.2		4.69
Commercial Lease Financing				176.8			4.1		2.29				205.9			4.8		2.32
Residential Mortgage				3,546.5			136.0		3.84				3,307.6			126.4		3.82
Home Equity				1,620.8			61.1		3.77				1,467.7			53.2		3.62
Automobile				591.2			23.2		3.92				486.5			23.2		4.78
Other 2				454.1			35.6		7.85				400.8			31.8		7.93
Total Loans and Leases				10,043.7			410.2		4.08				9,346.8			370.8		3.97
Other				39.0			1.4		3.48				40.5			0.9		2.33
Total Earning Assets 3				16,120.4			555.3		3.44				16,028.3			515.6		3.22
Cash and Due from Banks				241.6									158.7
Other Assets				609.0									562.2
Total Assets			$	16,971.0								$	16,749.2
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand			$	2,958.8			4.7		0.16			$	2,871.7			1.7		0.06
Savings				5,434.3			13.6		0.25				5,388.5			6.7		0.12
Time				1,725.9			22.8		1.32				1,589.4			13.9		0.88
Total Interest-Bearing Deposits				10,119.0			41.1		0.41				9,849.6			22.3		0.23
Short-Term Borrowings				35.5			0.8		2.13				17.7			0.2		1.05
Securities Sold Under Agreements to Repurchase				504.7			18.5		3.67				507.0			19.6		3.86
Other Debt				211.3			3.4		1.61				267.9			4.4		1.66
Total Interest-Bearing Liabilities				10,870.5			63.8		0.59				10,642.2			46.5		0.44
Net Interest Income						$	491.5								$	469.1
Interest Rate Spread									2.85	%								2.78	%
Net Interest Margin									3.05	%								2.93	%
Noninterest-Bearing Demand Deposits				4,638.7									4,655.8
Other Liabilities				216.1									242.1
Shareholders' Equity				1,245.7									1,209.1
Total Liabilities and Shareholders' Equity			$	16,971.0								$	16,749.2

1		Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
2		Comprised of other consumer revolving credit, installment, and consumer lease financing.
3		Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21% for 2018 and 35% for 2017, of $5,170,000 for the year ended December 31, 2018 and $11,843,000 for the year ended December 31, 2017.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8a
		Three Months Ended December 31, 2018
		Compared to September 30, 2018
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	(0.9	)		$	0.2			$	(0.7	)
Investment Securities
Available-for-Sale
Taxable			(0.2	)			0.7				0.5
Non-Taxable			(0.1	)			-				(0.1	)
Held-to-Maturity
Taxable			(0.3	)			1.0				0.7
Total Investment Securities			(0.6	)			1.7				1.1
Loans and Leases
Commercial and Industrial			0.8				0.5				1.3
Commercial Mortgage			0.8				0.4				1.2
Construction			(0.1	)			0.1				-
Residential Mortgage			0.5				0.6				1.1
Home Equity			0.2				(0.2	)			-
Automobile			0.3				(0.2	)			0.1
Other 2			(0.3	)			(0.2	)			(0.5	)
Total Loans and Leases			2.2				1.0				3.2
Total Change in Interest Income			0.7				2.9				3.6
Change in Interest Expense:
Interest-Bearing Deposits
Demand			-				0.2				0.2
Savings			-				0.7				0.7
Time			0.4				1.0				1.4
Total Interest-Bearing Deposits			0.4				1.9				2.3
Short-Term Borrowings			0.4				-				0.4
Other Debt			(0.2	)			0.1				(0.1	)
Total Change in Interest Expense			0.6				2.0				2.6
Change in Net Interest Income		$	0.1			$	0.9			$	1.0

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

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8b
		Three Months Ended December 31, 2018
		Compared to December 31, 2017
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	(0.4	)		$	0.4			$	-
Investment Securities
Available-for-Sale
Taxable			(1.0	)			2.5				1.5
Non-Taxable			(0.5	)			(0.8	)			(1.3	)
Held-to-Maturity
Taxable			(2.4	)			2.1				(0.3	)
Non-Taxable			-				(0.4	)			(0.4	)
Total Investment Securities			(3.9	)			3.4				(0.5	)
Loans and Leases
Commercial and Industrial			0.6				2.0				2.6
Commercial Mortgage			2.0				2.0				4.0
Construction			(0.4	)			-				(0.4	)
Commercial Lease Financing			(0.2	)			(0.1	)			(0.3	)
Residential Mortgage			1.9				0.6				2.5
Home Equity			0.9				0.5				1.4
Automobile			1.2				(1.0	)			0.2
Other 2			0.4				(0.1	)			0.3
Total Loans and Leases			6.4				3.9				10.3
Other			(0.1	)			0.2				0.1
Total Change in Interest Income			2.0				7.9				9.9
Change in Interest Expense:
Interest-Bearing Deposits
Demand			-				1.0				1.0
Savings			-				2.6				2.6
Time			0.1				2.5				2.6
Total Interest-Bearing Deposits			0.1				6.1				6.2
Short-Term Borrowings			0.3				0.1				0.4
Securities Sold Under Agreements to Repurchase			-				0.1				0.1
Other Debt			(0.5	)			0.1				(0.4	)
Total Change in Interest Expense			(0.1	)			6.4				6.3
Change in Net Interest Income		$	2.1			$	1.5			$	3.6

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.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8c
		Year Ended December 31, 2018
		Compared to December 31, 2017
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	(2.8	)		$	2.6			$	(0.2	)
Investment Securities
Available-for-Sale
Taxable			(2.5	)			7.0				4.5
Non-Taxable			(2.0	)			(3.1	)			(5.1	)
Held-to-Maturity
Taxable			(3.9	)			6.6				2.7
Non-Taxable			(0.1	)			(1.7	)			(1.8	)
Total Investment Securities			(8.5	)			8.8				0.3
Loans Held for Sale			(0.4	)			0.1				(0.3	)
Loans and Leases
Commercial and Industrial			1.5				5.9				7.4
Commercial Mortgage			7.6				6.4				14.0
Construction			(2.5	)			(0.1	)			(2.6	)
Commercial Lease Financing			(0.7	)			-				(0.7	)
Residential Mortgage			9.1				0.5				9.6
Home Equity			5.7				2.2				7.9
Automobile			4.5				(4.5	)			-
Other 2			4.1				(0.3	)			3.8
Total Loans and Leases			29.3				10.1				39.4
Other			0.1				0.4				0.5
Total Change in Interest Income			17.7				22.0				39.7
Change in Interest Expense:
Interest-Bearing Deposits
Demand			0.1				2.9				3.0
Savings			0.1				6.8				6.9
Time			1.3				7.6				8.9
Total Interest-Bearing Deposits			1.5				17.3				18.8
Short-Term Borrowings			0.3				0.3				0.6
Securities Sold Under Agreements to Repurchase			(0.1	)			(1.0	)			(1.1	)
Other Debt			(0.9	)			(0.1	)			(1.0	)
Total Change in Interest Expense			0.8				16.5				17.3
Change in Net Interest Income		$	16.9			$	5.5			$	22.4

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

Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits															Table 9
		Three Months Ended							Year Ended
		December 31,			September 30,				December 31,			December 31,
(dollars in thousands)		2018			2018				2017			2018			2017
Salaries		$	33,603		$	33,308			$	31,132		$	132,884		$	122,334
Incentive Compensation			5,715			5,378				7,078			20,687			22,834
Share-Based Compensation			1,417			2,153				3,040			8,074			10,184
Commission Expense			1,158			1,034				1,427			4,418			6,493
Retirement and Other Benefits			4,369			3,925				4,178			17,313			16,347
Payroll Taxes			2,277			2,372				2,301			11,389			11,025
Medical, Dental, and Life Insurance			5,237			3,616				2,503			16,134			12,362
Separation Expense			1,080			(4	)			39			2,309			2,150
Total Salaries and Benefits		$	54,856		$	51,782			$	51,698		$	213,208		$	203,729

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

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)			2018			2018			2018			2018			2017
Commercial
Commercial and Industrial			$	1,331,149		$	1,314,609		$	1,282,967		$	1,329,096		$	1,279,347
Commercial Mortgage				2,302,356			2,237,020			2,169,357			2,097,339			2,103,967
Construction				170,061			176,447			185,350			186,530			202,253
Lease Financing				176,226			172,232			178,598			179,771			180,931
Total Commercial				3,979,792			3,900,308			3,816,272			3,792,736			3,766,498
Consumer
Residential Mortgage				3,673,796			3,596,627			3,548,444			3,505,239			3,466,773
Home Equity				1,681,442			1,625,208			1,622,314			1,601,698			1,585,455
Automobile				658,133			625,086			592,705			558,468			528,474
Other 1				455,611			483,833			473,588			458,487			449,747
Total Consumer				6,468,982			6,330,754			6,237,051			6,123,892			6,030,449
Total Loans and Leases			$	10,448,774		$	10,231,062		$	10,053,323		$	9,916,628		$	9,796,947
Deposits
			December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)			2018			2018			2018			2018			2017
Consumer			$	7,726,731		$	7,627,527		$	7,672,435		$	7,665,926		$	7,478,228
Commercial				6,098,186			5,967,343			5,921,414			5,897,194			5,973,763
Public and Other				1,202,325			1,248,465			1,349,509			1,394,013			1,431,977
Total Deposits			$	15,027,242		$	14,843,335		$	14,943,358		$	14,957,133		$	14,883,968

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

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)				2018				2018				2018				2018				2017
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial				$	542			$	1,205			$	917			$	986			$	448
Commercial Mortgage					2,040				652				659				1,367				1,398
Total Commercial					2,582				1,857				1,576				2,353				1,846
Consumer
Residential Mortgage					5,321				6,359				6,722				6,725				9,243
Home Equity					3,671				3,673				3,933				3,890				3,991
Total Consumer					8,992				10,032				10,655				10,615				13,234
Total Non-Accrual Loans and Leases					11,574				11,889				12,231				12,968				15,080
Foreclosed Real Estate					1,356				1,909				2,926				2,768				1,040
Total Non-Performing Assets				$	12,930			$	13,798			$	15,157			$	15,736			$	16,120
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial				$	10			$	-			$	2			$	-			$	-
Commercial Mortgage					-				-				5,680				-				-
Total Commercial					10				-				5,682				-				-
Consumer
Residential Mortgage				$	2,446			$	2,426			$	2,281			$	2,927			$	2,703
Home Equity					2,684				3,112				3,016				3,013				1,624
Automobile					513				829				674				333				886
Other 1					914				1,727				1,660				1,895				1,934
Total Consumer					6,557				8,094				7,631				8,168				7,147
Total Accruing Loans and Leases Past Due 90 Days or More				$	6,567			$	8,094			$	13,313			$	8,168			$	7,147
Restructured Loans on Accrual Status and Not Past Due 90 Days or More				$	48,731			$	49,462			$	50,212			$	56,743			$	55,672
Total Loans and Leases				$	10,448,774			$	10,231,062			$	10,053,323			$	9,916,628			$	9,796,947
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases					0.11	%			0.12	%			0.12	%			0.13	%			0.15	%
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate					0.12	%			0.13	%			0.15	%			0.16	%			0.16	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate					0.06	%			0.05	%			0.04	%			0.06	%			0.05	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate					0.16	%			0.19	%			0.22	%			0.22	%			0.24	%
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					0.19	%			0.21	%			0.28	%			0.24	%			0.24	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter				$	13,798			$	15,157			$	15,736			$	16,120			$	17,035
Additions					4,509				2,030				1,949				2,332				2,109
Reductions
Payments					(3,759	)			(415	)			(1,847	)			(1,251	)			(368	)
Return to Accrual Status					(605	)			(1,420	)			(126	)			(1,270	)			(1,779	)
Sales of Foreclosed Real Estate					(653	)			(1,301	)			(421	)			-				(353	)
Charge-offs/Write-downs					(360	)			(253	)			(134	)			(195	)			(524	)
Total Reductions					(5,377	)			(3,389	)			(2,528	)			(2,716	)			(3,024	)
Balance at End of Quarter				$	12,930			$	13,798			$	15,157			$	15,736			$	16,120

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

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)				2018				2018				2017				2018				2017
Balance at Beginning of Period				$	115,512			$	115,010			$	113,703			$	114,168			$	110,845
Loans and Leases Charged-Off
Commercial
Commercial and Industrial					(365	)			(449	)			(499	)			(1,505	)			(1,408	)
Consumer
Residential Mortgage					(1	)			-				(4	)			(101	)			(729	)
Home Equity					(406	)			(124	)			(221	)			(665	)			(995	)
Automobile					(2,335	)			(2,114	)			(2,014	)			(8,218	)			(7,737	)
Other 1					(3,781	)			(3,340	)			(3,108	)			(14,075	)			(12,386	)
Total Loans and Leases Charged-Off					(6,888	)			(6,027	)			(5,846	)			(24,564	)			(23,255	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial					803				542				284				2,039				1,482
Lease Financing					-				-				1				-				3
Consumer
Residential Mortgage					112				261				182				807				639
Home Equity					367				558				498				2,001				2,681
Automobile					949				616				576				2,902				2,495
Other 1					660				752				520				2,737				2,128
Total Recoveries on Loans and Leases Previously Charged-Off					2,891				2,729				2,061				10,486				9,428
Net Loans and Leases Charged-Off					(3,997	)			(3,298	)			(3,785	)			(14,078	)			(13,827	)
Provision for Credit Losses					2,000				3,800				4,250				13,425				16,900
Provision for Unfunded Commitments					-				-				-				-				250
Balance at End of Period 2				$	113,515			$	115,512			$	114,168			$	113,515			$	114,168
Components
Allowance for Loan and Lease Losses				$	106,693			$	108,690			$	107,346			$	106,693			$	107,346
Reserve for Unfunded Commitments					6,822				6,822				6,822				6,822				6,822
Total Reserve for Credit Losses				$	113,515			$	115,512			$	114,168			$	113,515			$	114,168
Average Loans and Leases Outstanding				$	10,320,051			$	10,081,886			$	9,688,710			$	10,043,661			$	9,346,828
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)					0.15	%			0.13	%			0.15	%			0.14	%			0.15	%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding					1.02	%			1.06	%			1.10	%			1.02	%			1.10	%

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

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information																		Table 13a
										Investment
										Services and
		Retail				Commercial				Private				Treasury				Consolidated
(dollars in thousands)		Banking				Banking				Banking				and Other				Total
Three Months Ended December 31, 2018
Net Interest Income		$	67,452			$	46,429			$	10,235			$	(143	)		$	123,973
Provision for Credit Losses			4,481				(484	)			(1	)			(1,996	)			2,000
Net Interest Income After Provision for Credit Losses			62,971				46,913				10,236				1,853				121,973
Noninterest Income			20,339				6,338				13,397				2,034				42,108
Noninterest Expense			(53,417	)			(20,912	)			(17,583	)			(3,999	)			(95,911	)
Income Before Provision for Income Taxes			29,893				32,339				6,050				(112	)			68,170
Provision for Income Taxes			(7,465	)			(7,714	)			(1,595	)			2,515				(14,259	)
Net Income		$	22,428			$	24,625			$	4,455			$	2,403			$	53,911
Total Assets as of December 31, 2018		$	6,365,263			$	3,958,523			$	349,832			$	6,470,356			$	17,143,974
Three Months Ended December 31, 2017
Net Interest Income		$	65,408			$	43,932			$	9,008			$	422			$	118,770
Provision for Credit Losses			3,595				195				(5	)			465				4,250
Net Interest Income After Provision for Credit Losses			61,813				43,737				9,013				(43	)			114,520
Noninterest Income			20,910				5,219				13,716				2,010				41,855
Noninterest Expense			(54,021	)			(19,726	)			(15,982	)			(2,607	)			(92,336	)
Income Before Provision for Income Taxes			28,702				29,230				6,747				(640	)			64,039
Provision for Income Taxes			(10,222	)			(10,325	)			(2,496	)			1,957				(21,086	)
Net Income		$	18,480			$	18,905			$	4,251			$	1,317			$	42,953
Total Assets as of December 31, 2017		$	5,936,568			$	3,742,991			$	336,455			$	7,073,038			$	17,089,052

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information																		Table 13b
										Investment
										Services and
		Retail				Commercial				Private				Treasury				Consolidated
(dollars in thousands)		Banking				Banking				Banking				and Other				Total
Year Ended December 31, 2018
Net Interest Income		$	264,459			$	179,577			$	41,222			$	1,094			$	486,352
Provision for Credit Losses			14,898				(760	)			(61	)			(652	)			13,425
Net Interest Income After Provision for Credit Losses			249,561				180,337				41,283				1,746				472,927
Noninterest Income			79,004				23,733				55,338				10,848				168,923
Noninterest Expense			(211,761	)			(81,344	)			(65,847	)			(12,672	)			(371,624	)
Income Before Provision for Income Taxes			116,804				122,726				30,774				(78	)			270,226
Provision for Income Taxes			(29,172	)			(28,496	)			(8,113	)			15,157				(50,624	)
Net Income		$	87,632			$	94,230			$	22,661			$	15,079			$	219,602
Total Assets as of December 31, 2018		$	6,365,263			$	3,958,523			$	349,832			$	6,470,356			$	17,143,974
Year Ended December 31, 2017
Net Interest Income		$	264,041			$	171,038			$	29,693			$	(7,534	)		$	457,238
Provision for Credit Losses			14,008				(160	)			(21	)			3,073				16,900
Net Interest Income After Provision for Credit Losses			250,033				171,198				29,714				(10,607	)			440,338
Noninterest Income			85,042				21,670				57,105				21,600				185,417
Noninterest Expense			(209,807	)			(74,209	)			(61,674	)			(12,001	)			(357,691	)
Income Before Provision for Income Taxes			125,268				118,659				25,145				(1,008	)			268,064
Provision for Income Taxes			(44,545	)			(41,797	)			(9,303	)			12,253				(83,392	)
Net Income		$	80,723			$	76,862			$	15,842			$	11,245			$	184,672
Total Assets as of December 31, 2017		$	5,936,568			$	3,742,991			$	336,455			$	7,073,038			$	17,089,052

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)		2018				2018				2018				2018				2017
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases		$	107,404			$	104,248			$	101,311			$	97,634			$	96,974
Income on Investment Securities
Available-for-Sale			13,043				12,588				12,380				12,141				11,866
Held-to-Maturity			21,482				20,821				20,711				21,296				21,782
Deposits			10				10				(4	)			18				3
Funds Sold			727				1,393				846				757				717
Other			352				364				341				300				271
Total Interest Income			143,018				139,424				135,585				132,146				131,613
Interest Expense
Deposits			13,172				10,931				9,459				7,581				6,980
Securities Sold Under Agreements to Repurchase			4,671				4,667				4,617				4,564				4,664
Funds Purchased			440				33				83				53				81
Short-Term Borrowings			88				28				13				16				-
Other Debt			674				838				917				976				1,118
Total Interest Expense			19,045				16,497				15,089				13,190				12,843
Net Interest Income			123,973				122,927				120,496				118,956				118,770
Provision for Credit Losses			2,000				3,800				3,500				4,125				4,250
Net Interest Income After Provision for Credit Losses			121,973				119,127				116,996				114,831				114,520
Noninterest Income
Trust and Asset Management			10,558				10,782				11,356				11,181				11,105
Mortgage Banking			2,148				1,965				2,179				2,145				2,593
Service Charges on Deposit Accounts			7,562				7,255				6,865				7,129				8,053
Fees, Exchange, and Other Service Charges			14,576				14,173				14,400				14,333				13,784
Investment Securities Gains (Losses), Net			(841	)			(729	)			(1,702	)			(666	)			(617	)
Annuity and Insurance			1,409				1,360				1,847				1,206				1,273
Bank-Owned Life Insurance			1,941				1,620				1,796				1,842				1,609
Other			4,755				5,056				4,557				6,865				4,055
Total Noninterest Income			42,108				41,482				41,298				44,035				41,855
Noninterest Expense
Salaries and Benefits			54,856				51,782				52,148				54,422				51,698
Net Occupancy			8,918				8,702				8,588				8,534				8,510
Net Equipment			6,364				6,116				5,845				5,527				5,454
Data Processing			5,151				4,241				4,563				3,891				4,310
Professional Fees			2,467				2,206				2,546				2,773				3,266
FDIC Insurance			1,336				2,057				2,182				2,157				2,253
Other			16,819				15,434				14,919				17,080				16,845
Total Noninterest Expense			95,911				90,538				90,791				94,384				92,336
Income Before Provision for Income Taxes			68,170				70,071				67,503				64,482				64,039
Provision for Income Taxes			14,259				13,138				12,785				10,442				21,086
Net Income		$	53,911			$	56,933			$	54,718			$	54,040			$	42,953
Basic Earnings Per Share		$	1.30			$	1.37			$	1.31			$	1.29			$	1.02
Diluted Earnings Per Share		$	1.30			$	1.36			$	1.30			$	1.28			$	1.01
Balance Sheet Totals
Loans and Leases		$	10,448,774			$	10,231,062			$	10,053,323			$	9,916,628			$	9,796,947
Total Assets			17,143,974				16,991,734				17,124,162				17,136,030				17,089,052
Total Deposits			15,027,242				14,843,335				14,943,358				14,957,133				14,883,968
Total Shareholders' Equity			1,268,200				1,253,327				1,247,717				1,241,193				1,231,868
Performance Ratios
Return on Average Assets			1.26		%		1.33		%		1.30		%		1.29		%		1.00		%
Return on Average Shareholders' Equity			17.05				18.06				17.68				17.74				13.85
Efficiency Ratio 1			57.75				55.07				56.12				57.91				57.49
Net Interest Margin 2			3.10				3.07				3.04				3.00				2.98

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

Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends																					Table 15
		Eleven Months Ended						Year Ended
($ in millions; jobs in thousands)		November 30, 2018						December 31, 2017								December 31, 2016
Hawaii Economic Trends
State General Fund Revenues 1		$	6,362.7		7.3	%		$	6,485.0				4.3	%		$	6,215.4			3.6	%
General Excise and Use Tax Revenue 1		$	3,146.1		2.5	%		$	3,349.8				4.5	%		$	3,205.7			2.0	%
Jobs 2			668.8						668.2								669.4
													December 31,
(spot rates)													2018			2017				2016
Unemployment 3
Statewide, seasonally adjusted													2.5	%			2.1	%		2.9	%
Oahu													2.2				1.7			2.4
Island of Hawaii													2.9				2.0			3.1
Maui													2.3				1.8			2.7
Kauai													2.3				1.7			2.8
								December 31,
(percentage change, except months of inventory)								2018					2017			2016				2015
Housing Trends (Single Family Oahu) 4
Median Home Price									4.6		%		2.7	%			5.0	%		3.7	%
Home Sales Volume (units)									(7.7	)	%		6.3	%			6.5	%		5.2	%
Months of Inventory									2.8				2.1				2.5			2.6
								Monthly Visitor Arrivals,								Percentage Change
(in thousands)								Not Seasonally Adjusted								from Previous Year
Tourism 5
November 30, 2018													782.0							4.3
October 31, 2018													770.4							4.4
September 30, 2018													724.9							3.5
August 31, 2018													845.1							3.2
July 31, 2018													939.4							5.3
June 30, 2018													897.1							7.3
May 31, 2018													804.1							7.0
April 30, 2018													803.0							6.6
March 31, 2018													903.6							12.5
February 28, 2018													778.6							10.3
January 31, 2018													796.5							5.4
December 31, 2017													880.4							6.3
November 30, 2017													749.5							7.5
October 31, 2017													737.6							2.9
September 30, 2017													700.5							4.9
August 31, 2017													818.6							4.8
July 31, 2017													891.9							6.8
June 30, 2017													835.9							4.5
May 31, 2017													751.2							4.5
April 30, 2017													753.0							7.5
March 31, 2017													802.8							2.1
February 28, 2017													706.1							2.5
January 31, 2017													756.0							4.9

1		Source: Hawaii Department of Business, Economic Development & Tourism
2		Source: U. S. Bureau of Labor Statistics
3		Source: Hawaii Department of Labor and Industrial Relations, County jobs data not seasonally adjusted.
4		Source: Honolulu Board of REALTORS
5		Source: Hawaii Tourism Authority

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20190128005140/en/

Source: Bank of Hawaii Corporation

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