Bank of Hawaii Corporation First Quarter 2003 Financial Results

April 28, 2003

HONOLULU, Apr 28, 2003 (BUSINESS WIRE) -- Bank of Hawaii Corporation (NYSE:BOH):

  • Diluted Earnings Per Share Increases to $0.47
  • Net Income of $29.8 Million for the Quarter
  • Board of Directors Declares Dividend of $0.19 Per Share

Bank of Hawaii Corporation (NYSE:BOH) today reported diluted earnings per share of $0.47 for the first quarter of 2003, up from diluted earnings per share of $0.44 in the fourth quarter of 2002 and up from $0.41 in the comparable quarter last year. Net income for the first quarter was $29.8 million, up from $28.9 million in the previous quarter and down slightly from $31.1 million reported in the same quarter last year.

The return on average assets for the first quarter of 2003 was 1.31 percent, up from 1.20 percent in the fourth quarter of 2002 and up from 1.21 percent in the first quarter of 2002. The return on average equity was 12.42 percent in the first quarter, up from 10.72 percent in the previous quarter and a significant improvement from 9.97 percent in the same quarter last year.

"We are encouraged by the first quarter results for 2003," said Michael E. O'Neill, Chairman and CEO. "Despite weak financial market conditions, our net interest income and margin are up, credit losses and other credit quality indicators have improved, and our expenses are coming down. We are pleased to see growth in both loans and deposits. The Hawaii economy has held up well in the face of uncertainty. Our system conversion is on schedule and on budget, and we are looking forward to the benefits it will create for both our customers and our shareholders."

Net income in the first quarter of 2003 included charges of $7.4 million related to the information technology systems replacement project. Included in the fourth quarter of 2002 were charges of $7.0 million related to the information technology systems replacement project and $0.4 million in net restructuring expenses related to the divestiture program. Non-core items in the first quarter of 2002 included net restructuring expenses of $2.0 million.

Financial Highlights

Net interest income for the first quarter of 2003 on a fully taxable equivalent basis was $91.0 million, up $0.8 million from the fourth quarter of 2002, primarily due to increased loan volumes and a reduction in rates on deposits and borrowings. An analysis of the change in net interest income is included in Table 6. Net interest income was down $3.9 million from the first quarter of 2002 primarily due to lower interest rates.

The net interest margin was 4.29 percent for the first quarter of 2003, a 24 basis point increase from 4.05 percent in the previous quarter and a 37 basis point increase from 3.92 percent in the same quarter last year. The significant improvement in the net interest margin was largely due to lengthening the maturities of certain short-term investments, an improved earning asset mix, and reductions in short-term borrowings and time deposits, as well as debt repurchases in 2002, which lowered the Company's cost of funds.

Bank of Hawaii Corporation's credit quality continued to improve during the first quarter of 2003. As a result, the Company did not recognize a provision for loan and lease losses during the quarter. The allowance for loan and lease losses was reduced by $2.8 million from December 31, 2002, which equaled the amount of net charge-offs for the quarter. The Company did not recognize a provision for loan and lease losses during the fourth quarter of 2002. The provision for loan and lease losses was $8.3 million in the first quarter of 2002, which equaled net charge-offs for that quarter.

Non-interest income was $44.8 million for the quarter compared to non-interest income of $50.4 million in the fourth quarter of 2002 and $53.0 million in the first quarter of 2002. The decrease was largely due to a reduction in gains on sales of mortgage loans resulting from the decision at the end of 2002 to hold the majority of first quarter 2003 mortgage loan originations in the portfolio rather than selling them in the secondary market. The decrease in sales gains offset growth in other non-interest revenue, including tax preparation fees, service charges on deposits and other service fee income.

Non-interest expense for the first quarter of 2003 was $90.2 million, including the previously mentioned $7.4 million in information technology system replacement costs. Non-interest expense for the fourth quarter of 2002 also included a combined $7.4 million in information technology system replacement and net restructuring costs, as discussed above. By comparison, non-interest expense in the first quarter of 2002 included net restructuring costs of $2.0 million. Excluding these items, non-interest expense was $82.8 million in the first quarter of 2003, a decrease of $6.5 million, or 7.3 percent, compared to the previous quarter and a decrease of $6.7 million, or 7.4 percent, from the same quarter last year.

The efficiency ratio was 66.4 percent for the first quarter of 2003. Excluding systems replacement project costs and non-core items, the efficiency ratio was 61.0 percent in the first quarter, compared to 63.5 percent in the previous quarter and 60.5 percent in the same quarter last year.

The Company's business segments are defined as Retail Banking, Commercial Banking, Investment Services Group, and Treasury and Other Corporate. Business segment results are determined based on the Company's internal financial management reporting process and organizational structure. Business segment performance details are summarized in Table 11.

Asset Quality

Bank of Hawaii Corporation's credit quality reflected continued improvement in the first quarter of 2003. Non-performing assets were $44.2 million at the end of the quarter, a decrease of $10.2 million, or 18.8 percent, from non-performing assets of $54.4 million at the end of the fourth quarter. Compared to the same period last year, non-performing assets declined $46.5 million, or 51.3 percent. At March 31, 2003 the ratio of non-performing assets to total loans plus foreclosed assets and non-performing loans held for sale was 0.79 percent down from 1.01 percent at December 31, 2002 and down from 1.61 percent at March 31, 2002.

Non-accrual loans were $35.1 million at March 31, 2003, a reduction of $9.9 million, or 22.0 percent, from $45.0 million at December 31, 2002 and down $28.6 million, or 44.9 percent, from $63.7 million at March 31, 2002. Non-accrual loans as a percentage of total loans were 0.63 percent at March 31, 2003 down from 0.84 percent at the end of the previous quarter and down from 1.14 percent at the end of the comparable quarter last year.

Net charge-offs for the first quarter of 2003 were $2.8 million, or 0.21 percent (annualized) of total average loans. Charge-offs during the quarter of $6.1 million were partially offset by recoveries of $3.3 million. Net charge-offs in the fourth quarter of 2002 were $11.6 million, or 0.88 percent (annualized) of total average loans. Net charge-offs during the first quarter of 2002 were $8.3 million, or 0.60 percent (annualized) of total average loans.

The allowance for loan and lease losses was $140.0 million at March 31, 2003. The ratio of the allowance for loan and lease losses to total loans was 2.52 percent at March 31, 2003 compared with 2.67 percent at December 31, 2002 and 2.84 percent at the end of the same quarter last year.

Concentrations of credit exposure to selected components of the portfolio are summarized in Table 7.

Other Financial Highlights

Total assets were $9.4 billion at the end of March 31, 2003, down slightly from $9.5 billion at the end of December 31, 2002 and down from $10.2 billion at the end of March 31, 2002. The decrease of $106 million from the previous quarter was largely due to reductions in short-term investments. Partially offsetting the decrease in short-term investments was growth in loans, which increased $206 million from December 31, 2002. Compared to the previous year, the decrease in total assets was largely due to reductions in short-term investments as excess liquidity was utilized for share repurchases and debt reduction.

Total deposits at March 31, 2003 were $7.0 billion, up $67 million from December 31, 2002 and up $444 million from March 31, 2002 as growth in demand and savings deposits continued to offset managed decreases in time and foreign deposits. During the first quarter of 2003 the number of checking and savings accounts increased in response to deposit promotions and other initiatives. Offsetting the deposit growth were decreases in short-term borrowings, which reflected the lower funding needs of the Company.

During the first quarter of 2003, Bank of Hawaii Corporation repurchased 2.9 million shares of common stock at a total cost of $86.3 million under the share repurchase program. The average cost per share was $30.22 during the quarter. From the beginning of the program through March 31, 2003, the Company had repurchased a total of 23.0 million shares and returned a total of $614.2 million to the shareholder at an average cost of $26.71 per share. Through April 25, 2003, the Company repurchased an additional 0.14 million shares of common stock at a cost of $31.87 per share. Remaining buyback authority was $181.3 million at April 25, 2003.

The Company's capital and liquidity remained exceptionally strong during the first quarter of 2003. At March 31, 2003 the Tier 1 leverage ratio was 10.03 percent compared to 10.34 percent at December 31, 2002 and 12.64 percent at March 31, 2002.

The Company's Board of Directors declared a quarterly cash dividend of $0.19 per share on the Company's outstanding shares. The dividend will be payable on June 13, 2003 to shareholders of record at the close of business on May 23, 2003.

Information Technology Systems Replacement Project

Bank of Hawaii Corporation signed an agreement with Metavante Corporation in July 2002 to serve as the Company's primary technology systems provider. The seven-year outsourcing arrangement remains on schedule to be operational in the third quarter of 2003 and is expected to provide annual cost savings of over $17 million compared to 2002 expense levels. In connection with this project, the Company estimates that it will recognize transition charges of approximately $35 million over the five-quarter conversion period that began in the third quarter of 2002. During the first quarter of 2003, $7.4 million in transition costs were incurred, bringing the total project-to-date cost to $21.0 million. System conversion costs are estimated to be approximately $10.2 million in the second quarter of 2003. Additional details on this project may be found in Table 10.

Economic Outlook

The Hawaii economy remained relatively strong during the first quarter of 2003 and is forecast to remain healthy during the remainder of the year. The construction and real estate investment sectors continue to lead the Hawaii economy. Tourism, as measured by passenger arrivals, was up 4.1 percent in the first quarter of 2003 compared to the same quarter last year. The recent conflict in Iraq had minimal effects on Hawaii tourism. Unemployment in Hawaii declined to 3.0 percent during the quarter, about half the national unemployment level. Job growth in the state is projected to be approximately 2.0 percent for 2003 and real income is forecast to grow about 3.0 percent. Inflation expectations remain relatively low at 1.5 percent. For more economic information, visit the Company's web site http://www.boh.com/econ/.

Earnings Outlook

The Company's previously published earnings guidance of $131 million in net income for the full year of 2003 remains unchanged. Based on current conditions, the Company does not expect to record a provision for loan losses in 2003. However, the actual amount of the provision for loan losses will depend on determinations of credit risk that will be made near the end of each quarter. Earnings per share and return on equity projections continue to be dependent upon the terms and timing of share repurchases.

Conference Call Information

The Company will review its first quarter 2003 financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The presentation 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 is (800) 915-4836 in the U.S. or (973) 317-5319 for international callers. A replay will be available for one week beginning at 9:00 a.m. Hawaii Time (3:00 p.m. Eastern Time) on Monday, April 28, 2003 by calling (800) 428-6051 in the U.S or (973) 709-2089 for international and entering the number 273138 when prompted. A replay of the presentation will be also available on the Company's web site.

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.

This news release contains forward-looking statements concerning the expected efficiency ratio, expected level of loan loss provisioning, anticipated costs and annual savings of our technology systems replacement project, and anticipated revenues and expenses in 2003 and beyond. We believe the assumptions underlying our forward-looking statements are reasonable. However, any of the assumptions could prove to be inaccurate and actual results may differ materially from those projected for a variety of reasons, including, but not limited to: 1) unanticipated changes in business and economic conditions, the competitive environment, fiscal and monetary policies, or legislation in Hawaii and the other markets we serve; 2) changes in our credit quality or risk profile which may increase or decrease the required level of allowance for loan and lease losses; 3) changes in market interest rates may deteriorate our credit markets and ability to maintain our net interest margin; 4) changes to the amount and timing of our proposed equity repurchases; 5) inability to achieve expected benefits of our technology outsourcing project and other business process changes due to adverse changes in implementation processes or costs, operational savings, or timing; 6) actions by the United States military and real or threatened terrorist activity affecting business conditions; and 7) adverse weather and other natural conditions impacting our and customers' operations. We do not undertake any obligation to update any forward-looking statements to reflect later events or circumstances.

Bank of Hawaii Corporation and Subsidiaries
Highlights  (Unaudited)                                       Table 1
----------------------------------------------------------------------
(dollars in thousands except per share amounts)


                                                  Three Months Ended
                                                 March 31,   March 31,
Earnings Highlights and Performance Ratios         2003       2002 (1)
--------------------------------------------- ------------------------

Net Income                                       $29,801      $31,056
Basic Earnings Per Share                            0.49         0.42
Diluted Earnings Per Share                          0.47         0.41
Cash Dividends                                    11,562       13,177
Return on Average Assets                            1.31%        1.21%
Return on Average Equity                           12.42%        9.97%
Net Interest Margin                                 4.29%        3.92%
Efficiency Ratio                                   66.44%       61.81%
Efficiency Ratio excluding ITSRP and
 Restructuring Costs                               60.98%       60.47%

----------------------------------------------------------------------

Statement of Condition Highlights and            March 31,   March 31,
 Performance Ratios                                 2003      2002 (1)
--------------------------------------------- ------------------------

Total Assets                                  $9,410,210  $10,245,021
Net Loans                                      5,425,343    5,442,601
Total Deposits                                 6,987,331    6,543,781
Total Shareholders' Equity                       952,007    1,265,907

Book Value Per Common Share                       $15.76       $17.24
Allowance / Loans Outstanding                       2.52%        2.84%
Average Equity / Average Assets                    10.53%       12.13%
Employees (FTE)                                    2,891        3,082
Branches and offices                                  91          104

Market Price Per Share of Common
 Stock for the Quarter Ended:
                                      Closing     $30.80       $26.06
                                      High        $31.50       $27.79
                                      Low         $29.25       $23.79


(1) Certain 2002 information has been reclassified to conform to
2003 presentation.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)                 Table 2
----------------------------------------------------------------------

                                                Three Months Ended (1)
                                                  March 31,  March 31,
(dollars in thousands except per share amounts)     2003       2002
----------------------------------------------------------------------
Interest Income
   Interest and Fees on Loan and Leases            $85,773    $98,645
   Income on Investment Securities - Held to
    Maturity                                         2,283      5,145
   Income on Investment Securities - Available
    for Sale                                        22,463     27,193
   Deposits                                          1,307      5,047
   Funds Sold and Security Resale Agreements           764      1,003
   Other                                             1,189      1,332
----------------------------------------------------------------------
Total Interest Income                              113,779    138,365
Interest Expense
   Deposits                                         14,447     23,978
   Security Repurchase Agreements                    2,242     10,293
   Funds Purchased                                     205        231
   Short-Term Borrowings                                24        649
   Long-Term Debt                                    5,861      8,319
----------------------------------------------------------------------
Total Interest Expense                              22,779     43,470
----------------------------------------------------------------------
Net Interest Income                                 91,000     94,895
Provision for Loan and Lease Losses                      -      8,292
----------------------------------------------------------------------
Net Interest Income After Provision for Loan and
 Lease Losses                                       91,000     86,603
Non-Interest Income
   Trust and Asset Management                       13,190     14,818
   Mortgage Banking                                    283      7,957
   Service Charges on Deposit Accounts               8,950      8,410
   Fees, Exchange, and Other Service Charges        12,980     12,452
   Investment Securities Gains                         583          -
   Insurance                                         2,982      2,599
   Other                                             5,785      6,789
----------------------------------------------------------------------
Total Non-Interest Income                           44,753     53,025
Non-Interest Expense
   Salaries                                         36,459     39,187
   Pensions and Other Employee Benefits              9,970      9,996
   Net Occupancy Expense                             9,613      9,593
   Net Equipment Expense                             9,748     10,121
   Restructuring and Other Related Costs                 -      1,979
   Information Technology Systems Replacement
    Project                                          7,417          -
   Other                                            16,993     20,547
----------------------------------------------------------------------
Total Non-Interest Expense                          90,200     91,423
----------------------------------------------------------------------
Income Before Income Taxes                          45,553     48,205
Provision for Income Taxes                          15,752     17,149
----------------------------------------------------------------------
Net Income                                         $29,801    $31,056
======================================================================
Basic Earnings Per Share                             $0.49      $0.42
Diluted Earnings Per Share                           $0.47      $0.41
Dividends Per Share                                  $0.19      $0.18
Basic Weighted Average Shares                   61,294,460 73,312,573
Diluted Weighted Average Shares                 63,535,609 75,199,181
======================================================================

(1) Certain 2002 information has been reclassified to conform to
2003 presentation.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition (Unaudited)              Table 3
----------------------------------------------------------------------
                                      March 31,  Dec. 31,    March 31,
(dollars in thousands)                  2003       2002       2002 (1)
----------------------------------------------------------------------
Assets
Interest-Bearing Deposits             $157,067   $549,978  $1,347,611
Investment Securities - Held to
 Maturity (Market Value of $180,043,
   $236,016 and $354,187,
   respectively)                       175,600    229,720     344,723
Investment Securities - Available
 for Sale                            2,497,508  2,287,201   1,980,378
Funds Sold                             175,000    195,000     135,000
Loans Held for Sale                     47,269     40,118      99,773
Loans                                5,565,371  5,359,004   5,601,580
  Allowance for Loan and Lease
   Losses                             (140,028)  (142,853)   (158,979)
----------------------------------------------------------------------
      Net Loans                      5,425,343  5,216,151   5,442,601
----------------------------------------------------------------------
Total Earning Assets                 8,477,787  8,518,168   9,350,086
Cash and Non-Interest Bearing
 Deposits                              331,994    374,352     248,307
Premises and Equipment                 170,696    176,969     192,291
Customers' Acceptance Liability          1,372      2,680       1,007
Accrued Interest Receivable             36,845     36,722      40,940
Foreclosed Real Estate                   9,097      9,434      19,181
Mortgage Servicing Rights               25,801     28,820      30,501
Goodwill                                36,216     36,216      36,216
Other Assets                           320,402    333,057     326,492
----------------------------------------------------------------------
Total Assets                        $9,410,210 $9,516,418 $10,245,021
======================================================================
Liabilities
Domestic Deposits
   Non-Interest Bearing Demand      $1,714,601 $1,719,633  $1,592,955
   Interest Bearing Demand           1,162,202  1,169,128     933,801
   Savings                           2,669,409  2,535,219   2,089,257
   Time                              1,416,860  1,461,780   1,807,015
Foreign Deposits
   Time Due to Banks                       276      1,130      42,261
   Other Savings and Time               23,983     33,271      78,492
----------------------------------------------------------------------
Total Deposits                       6,987,331  6,920,161   6,543,781
Securities Sold Under Agreements to
 Repurchase                            646,317    735,621   1,544,718
Funds Purchased                         69,890     64,467      43,485
Current Maturities of Long-Term Debt   118,792    114,781      64,975
Short-Term Borrowings                   12,096     33,420      20,644
Banker's Acceptances Outstanding         1,372      2,680       1,007
Retirement Benefits Payable             62,091     61,385      37,055
Accrued Interest Payable                12,761     13,731      27,983
Taxes Payable                          206,139    196,813     146,360
Other Liabilities                       70,644     82,596      84,874
Long-Term Debt                         270,770    275,004     464,232
----------------------------------------------------------------------
Total Liabilities                    8,458,203  8,500,659   8,979,114
Shareholders' Equity
Common Stock ($.01 par value);
 authorized 500,000,000 shares;
   issued / outstanding:  March 2003
    - 81,276,420 / 60,418,539;
   December 2002 - 81,294,730 /
    63,015,442; March 2002 -
    81,346,027 / 73,409,966                807        806         806
Capital Surplus                        372,887    372,192     369,541
Accumulated Other Comprehensive
 Income                                  8,273     11,659      20,389
Retained Earnings                    1,133,642  1,115,910   1,065,706
Deferred Stock Grants                       74     (1,424)     (4,933)
Treasury Stock, at Cost (Shares:
 March 2003 - 20,857,881;
 December 2002 - 18,279,288;
  March 2002 - 7,936,061)             (563,676)  (483,384)   (185,602)
----------------------------------------------------------------------
Total Shareholders' Equity             952,007  1,015,759   1,265,907
----------------------------------------------------------------------
Total Liabilities and Shareholders'
 Equity                             $9,410,210 $9,516,418 $10,245,021
======================================================================

(1) Certain 2002 information has been reclassified to conform to
2003 presentation.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity
(Unaudited)                                                   Table 4
----------------------------------------------------------------------


                                                                Accum.
                                                                 Other
                                                               Compre-
                                               Common  Capital hensive
(dollars in thousands)                 Total    Stock  Surplus  Income
----------------------------------------------------------------------

Balance at December 31, 2002        $1,015,759  $806 $372,192 $11,659
Comprehensive Income
     Net Income                         29,801     -        -       -
     Other Comprehensive
      Income, Net of Tax
       Unrealized Gain on
        Investment Securities           (3,386)    -        -  (3,386)
     Total Comprehensive Income

Common Stock Issued
  9,930 Profit Sharing Plan                216     -        -       -
245,213 Stock Option Plan                5,834     -    1,083       -
 24,969 Dividend Reinvestment Plan         543     -        -       -
    690 Directors' Restricted Shares
         and Deferred Compensation Plan     (6)    1       20       -
(19,000)Employees' Restricted Shares     1,134     -     (408)      -
Treasury Stock Purchased
 (2,856,600 shares)                    (86,326)    -        -       -
Cash Dividends Paid                    (11,562)    -        -       -
----------------------------------------------------------------------
Balance at March 31, 2003             $952,007  $807 $372,887  $8,273
======================================================================



                                            Deferred           Compre-
                                    Retained   Stock  Treasury hensive
(dollars in thousands)              Earnings  Grants     Stock  Income
----------------------------------------------------------------------

Balance at December 31, 2002      $1,115,910 $(1,424)$(483,384)
Comprehensive Income
     Net Income                       29,801       -         - $29,801
     Other Comprehensive
      Income, Net of Tax
       Unrealized Gain on
        Investment Securities              -       -         - (3,386)
                                                              --------
     Total Comprehensive Income                               $26,415
                                                              ========

Common Stock Issued
  9,930 Profit Sharing Plan                -       -       216
245,213 Stock Option Plan               (507)    (44)    5,302
 24,969 Dividend Reinvestment Plan         -       -       543
    690 Directors' Restricted Shares
        and Deferred Compensation Plan     -       -       (27)
(19,000)Employees' Restricted Shares       -   1,542         -
Treasury Stock Purchased
 (2,856,600 shares)                        -       -   (86,326)
Cash Dividends Paid                  (11,562)      -         -
--------------------------------------------------------------
Balance at March 31, 2003         $1,133,642     $74 $(563,676)
==============================================================


                                                                Accum.
                                                                 Other
                                                               Compre-
                                               Common  Capital hensive
(dollars in thousands)                 Total    Stock  Surplus  Income
----------------------------------------------------------------------

Balance at December 31, 2001        $1,247,012  $806 $367,672 $22,761
Comprehensive Income
     Net Income                         31,056     -        -       -
     Other Comprehensive
      Income, Net of Tax
       Unrealized Gain on
        Investment Securities           (1,913)    -        -  (1,913)
       Foreign Currency
        Translation Adjustment            (459)    -        -    (459)
     Total Comprehensive Income

Common Stock Issued
 12,113 Profit Sharing Plan                325     -       37       -
884,893 Stock Option Plan               18,237     -    2,455       -
 27,454 Dividend Reinvestment Plan         731     -       77       -
   (114)Directors' Restricted Shares
         and Deferred Compensation Plan    (16)    -       (1)      -
(31,100)Employees' Restricted Shares     1,259     -     (699)      -
Treasury Stock Purchased
 (701,000 shares)                      (17,148)    -        -       -
Cash Dividends Paid                    (13,177)    -        -       -
----------------------------------------------------------------------
Balance at March 31, 2002           $1,265,907  $806 $369,541 $20,389
======================================================================



                                            Deferred           Compre-
                                    Retained   Stock  Treasury hensive
(dollars in thousands)              Earnings  Grants     Stock  Income
----------------------------------------------------------------------

Balance at December 31, 2001     $1,055,424 $(7,637)$(192,014)
Comprehensive Income
     Net Income                      31,056       -         - $31,056
     Other Comprehensive
      Income, Net of Tax
       Unrealized Gain on
        Investment Securities             -       -         -  (1,913)
      Foreign Currency
        Translation Adjustment            -       -         -    (459)
                                                              --------
     Total Comprehensive Income                               $28,684
                                                              ========

Common Stock Issued
 12,113 Profit Sharing Plan               -       -       288
884,893 Stock Option Plan            (7,595)    746    22,631
 27,454 Dividend Reinvestment Plan       (2)      -       656
   (114)Directors' Restricted Shares
         and Deferred Compensation Plan   -       -       (15)
(31,100)Employees' Restricted Shares      -   1,958         -
Treasury Stock Purchased
 (701,000 shares)                         -       -   (17,148)
Cash Dividends Paid                 (13,177)      -         -
--------------------------------------------------------------
Balance at March 31, 2002        $1,065,706 $(4,933)$(185,602)
==============================================================

Bank of Hawaii Corporation and Subsidiaries
Consolidated Average Balances and Interest Rates -
Taxable Equivalent Basis (Unaudited)                          Table 5
----------------------------------------------------------------------
                                                  Three Months Ended
                                                    March 31, 2003
                                               Average  Income/ Yield/
(dollars in millions)                          Balance  Expense  Rate
----------------------------------------------------------------------
Earning Assets
Interest Bearing Deposits                        $253.8   $1.3  2.09%
Funds Sold                                        250.5    0.8  1.22
Investment Securities
 -  Held-to-Maturity                              202.0    2.3  4.61
 -  Available for Sale                          2,268.1   22.5  3.96
Loans Held for Sale                                10.1    0.1  5.16
Net Loans and Lease Financing
 Domestic
  -  Commercial and Industrial                    871.7   10.7  4.96
  -  Construction                                 115.4    1.4  5.08
  -  Commercial Mortgage                          597.8    9.0  6.14
  -  Residential Mortgage                       2,249.0   37.7  6.70
  -  Installment                                  501.9   12.6 10.21
  -  Home Equity                                  434.5    5.7  5.28
  -  Purchased Home Equity                        180.2    2.6  5.78
  -  Lease Financing                              495.6    5.9  4.81
----------------------------------------------------------------------
 Total Domestic Loans                           5,446.1   85.6  6.33
 Foreign                                           14.7      -     -
----------------------------------------------------------------------
Total Loans                                     5,460.8   85.6  6.32
Other                                              74.6    1.2  6.47
----------------------------------------------------------------------
Total Earning Assets                            8,519.9  113.8  5.38
Cash and Non-interest Bearing Deposits            331.6
Other Assets                                      391.5
                                               ---------
Total Assets                                   $9,243.0
                                               =========

Interest Bearing Liabilities
Interest Bearing Deposits
 Domestic Deposits
 -  Demand                                     $1,149.2    0.7  0.26
 -  Savings                                     2,608.2    4.6  0.71
 -  Time                                        1,443.3    9.1  2.55
----------------------------------------------------------------------
 Total Domestic Deposits                        5,200.7   14.4  1.12
 Foreign Deposits
 -  Time Due to Banks                               1.0      -     -
 -  Other Time and Savings                         30.5    0.1  1.23
----------------------------------------------------------------------
 Total Foreign Deposits                            31.5    0.1  1.11
----------------------------------------------------------------------
Total Interest Bearing Deposits                 5,232.2   14.5  1.12
Short-Term Borrowings                             649.8    2.5  1.54
Long-Term Debt                                    390.4    5.8  6.09
----------------------------------------------------------------------
Total Interest Bearing Liabilities              6,272.4   22.8  1.47
----------------------------------------------------------------------
Net Interest Income                                      $91.0
                                                        =======
       Interest Rate Spread                                     3.91%
       Net Interest Margin                                      4.29%
Non-Interest Bearing Demand Deposits (Domestic) 1,636.8
Other Liabilities                                 360.7
Shareholders' Equity                              973.1
                                               ---------
Total Liabilities and Shareholders' Equity     $9,243.0
                                               =========


                                                Three Months Ended (1)
                                                 December 31, 2002
                                               Average  Income/ Yield/
(dollars in millions)                          Balance  Expense  Rate
----------------------------------------------------------------------
Earning Assets
Interest Bearing Deposits                        $796.6   $3.6  1.78%
Funds Sold                                        234.5    0.8  1.42
Investment Securities
 -  Held-to-Maturity                              253.8    3.2  4.98
 -  Available for Sale                          2,273.3   24.1  4.24
Loans Held for Sale                                38.9    0.6  5.88
Net Loans and Lease Financing
 Domestic
  -  Commercial and Industrial                    867.7   11.4  5.20
  -  Construction                                 131.5    1.8  5.30
  -  Commercial Mortgage                          610.5    9.9  6.40
  -  Residential Mortgage                       2,212.6   38.5  6.97
  -  Installment                                  443.3   11.5 10.38
  -  Home Equity                                  422.2    5.9  5.50
  -  Purchased Home Equity                         10.1      -     -
  -  Lease Financing                              498.5    6.3  5.03
----------------------------------------------------------------------
 Total Domestic Loans                           5,196.4   85.3  6.54
 Foreign                                           14.0      -     -
----------------------------------------------------------------------
Total Loans                                     5,210.4   85.3  6.52
Other                                              78.7    1.3  6.62
----------------------------------------------------------------------
Total Earning Assets                            8,886.2  118.9  5.33
Cash and Non-interest Bearing Deposits            305.2
Other Assets                                      363.4
                                               ---------
Total Assets                                   $9,554.8
                                               =========

Interest Bearing Liabilities
Interest Bearing Deposits
 Domestic Deposits
 -  Demand                                     $1,099.9    1.1  0.38
 -  Savings                                     2,468.2    6.4  1.03
 -  Time                                        1,501.1   10.1  2.66
----------------------------------------------------------------------
 Total Domestic Deposits                        5,069.2   17.6  1.37
 Foreign Deposits
 -  Time Due to Banks                               2.9      -     -
 -  Other Time and Savings                         39.4    0.1  1.38
----------------------------------------------------------------------
 Total Foreign Deposits                            42.3    0.1  1.29
----------------------------------------------------------------------
Total Interest Bearing Deposits                 5,111.5   17.7  1.37
Short-Term Borrowings                           1,053.5    5.1  1.90
Long-Term Debt                                    389.9    5.9  6.05
----------------------------------------------------------------------
Total Interest Bearing Liabilities              6,554.9   28.7  1.73
----------------------------------------------------------------------
Net Interest Income                                      $90.2
                                                        =======
       Interest Rate Spread                                     3.60%
       Net Interest Margin                                      4.05%
Non-Interest Bearing Demand Deposits (Domestic) 1,601.0
Other Liabilities                                 329.3
Shareholders' Equity                            1,069.6
                                               ---------
Total Liabilities and Shareholders' Equity     $9,554.8
                                               =========


                                                Three Months Ended (1)
                                                   March 31, 2002
                                               Average  Income/ Yield/
(dollars in millions)                          Balance  Expense  Rate
----------------------------------------------------------------------
Earning Assets
Interest Bearing Deposits                       $1,154.7   $5.0  1.77%
Funds Sold                                         237.3    1.0  1.69
Investment Securities
 -  Held-to-Maturity                               368.7    5.2  5.66
 -  Available for Sale                           1,939.1   27.2  5.61
Loans Held for Sale                                340.9    5.7  6.66
Net Loans and Lease Financing
 Domestic
  -  Commercial and Industrial                   1,150.9   14.5  5.11
  -  Construction                                  169.8    2.2  5.20
  -  Commercial Mortgage                           625.9   10.5  6.77
  -  Residential Mortgage                        2,394.0   42.8  7.15
  -  Installment                                   390.6   11.0 11.46
  -  Home Equity                                   347.9    5.3  6.22
  -  Purchased Home Equity                             -      -     -
  -  Lease Financing                               492.0    6.6  5.46
----------------------------------------------------------------------
 Total Domestic Loans                            5,571.1   92.9  6.72
 Foreign                                            14.3    0.1  1.71
----------------------------------------------------------------------
Total Loans                                      5,585.4   93.0  6.71
Other                                               88.4    1.3  6.12
----------------------------------------------------------------------
Total Earning Assets                             9,714.5  138.4  5.73
Cash and Non-interest Bearing Deposits             304.0
Other Assets                                       398.3
                                               ----------
Total Assets                                   $10,416.8
                                               ==========

Interest Bearing Liabilities
Interest Bearing Deposits
 Domestic Deposits
 -  Demand                                        $926.4    1.0  0.45
 -  Savings                                      2,045.5    7.2  1.43
 -  Time                                         1,891.0   14.8  3.17
----------------------------------------------------------------------
 Total Domestic Deposits                         4,862.9   23.0  1.92
 Foreign Deposits
 -  Time Due to Banks                              118.7    0.6  2.09
 -  Other Time and Savings                          83.9    0.4  1.70
----------------------------------------------------------------------
 Total Foreign Deposits                            202.6    1.0  1.93
----------------------------------------------------------------------
Total Interest Bearing Deposits                  5,065.5   24.0  1.92
Short-Term Borrowings                            1,738.8   11.2  2.61
Long-Term Debt                                     538.2    8.3  6.27
----------------------------------------------------------------------
Total Interest Bearing Liabilities               7,342.5   43.5  2.40
----------------------------------------------------------------------
Net Interest Income                                       $94.9
                                                         =======
       Interest Rate Spread                                      3.33%
       Net Interest Margin                                       3.92%
Non-Interest Bearing Demand Deposits (Domestic)  1,508.9
Other Liabilities                                  301.9
Shareholders' Equity                             1,263.5
                                               ----------
Total Liabilities and Shareholders' Equity     $10,416.8
                                               ==========

(1) Certain 2002 information has been reclassified to conform to
2003 presentation.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income
- Tax Equivalent Basis (Unaudited)                            Table 6
 ---------------------------------------------------------------------
                                     Three Months Ended March 31, 2003
                                     Compared to December 31, 2002 (2)
(dollars in millions)                Volume(1) Rate(1)  Time(1)  Total
----------------------------------------------------------------------

Change in Interest Income:
Interest Bearing Deposits              $(2.8)   $0.6    $(0.1)  $(2.3)
Fed Funds Sold                           0.1    (0.1)       -       -
Investment Securities
   Held-to-Maturity                     (0.6)   (0.3)       -    (0.9)
   Available for Sale                   (0.1)   (1.5)       -    (1.6)
Loans Held for Sale                     (0.4)   (0.1)       -    (0.5)
Loans
   Commercial and Industrial               -    (0.5)    (0.2)   (0.7)
   Construction                         (0.2)   (0.1)    (0.1)   (0.4)
   Commercial Mortgage                  (0.3)   (0.4)    (0.2)   (0.9)
   Residential Mortgage                  0.7    (1.5)       -    (0.8)
   Installment                           1.5    (0.2)    (0.2)    1.1
   Home Equity                           0.2    (0.2)    (0.2)   (0.2)
   Purchased Home Equity                 2.4     0.2        -     2.6
   Lease Financing                         -    (0.3)    (0.1)   (0.4)
----------------------------------------------------------------------
Total Loans                              4.3    (3.0)    (1.0)    0.3
Other                                   (0.1)      -        -    (0.1)
----------------------------------------------------------------------

Total Change in Interest Income          0.4    (4.4)    (1.1)   (5.1)
----------------------------------------------------------------------

Change in Interest Expense:
Interest Bearing Deposits
   Demand                                  -    (0.4)       -    (0.4)
   Savings                               0.2    (1.9)    (0.1)   (1.8)
   Time                                 (0.4)   (0.4)    (0.2)   (1.0)
----------------------------------------------------------------------
Total Interest Bearing Deposits         (0.2)   (2.7)    (0.3)   (3.2)
Short-Term Borrowings                   (1.6)   (0.9)    (0.1)   (2.6)
Long-Term Debt                             -       -     (0.1)   (0.1)
----------------------------------------------------------------------

Total Change in Interest Expense        (1.8)   (3.6)    (0.5)   (5.9)
----------------------------------------------------------------------

Change in Net Interest Income           $2.2   $(0.8)   $(0.6)   $0.8
======================================================================

(1) The changes for each category of interest income and expense are
 allocated between the portion of changes attributable to the variance
 in volume, rate or time for that category.

(2) Certain 2002 information has been reclassified to conform to
 2003 presentation.

Bank of Hawaii Corporation and Subsidiaries
Loan Portfolio Balances (Unaudited)                           Table 7
----------------------------------------------------------------------
                                          March 31, Dec. 31, March 31,
(dollars in millions)                        2003     2002    2002 (1)
----------------------------------------------------------------------
Domestic
  Commercial
     Commercial and Industrial              $824.9    $875.0 $1,114.9
     Commercial Mortgage                     691.7     591.1    617.6
     Construction                             86.7     127.5    161.4
     Lease Financing                         430.4     427.3    436.1
----------------------------------------------------------------------
  Total Commercial                         2,033.7   2,020.9  2,330.0
  Consumer
     Residential Mortgage                  2,305.3   2,131.4  2,409.4
     Home Equity                             439.1     428.2    369.8
     Purchased Home Equity                   170.9     185.8        -
     Other Consumer                          518.5     493.3    389.5
     Lease Financing                          33.8      34.5     37.9
----------------------------------------------------------------------
  Total Consumer                           3,467.6   3,273.2  3,206.6
----------------------------------------------------------------------
Total Domestic                             5,501.3   5,294.1  5,536.6
----------------------------------------------------------------------
Foreign                                       64.1      64.9     65.0
----------------------------------------------------------------------
Total Loans                               $5,565.4  $5,359.0 $5,601.6
======================================================================

(1) Certain 2002 information has been reclassified to conform to
2003 presentation.


Selected Concentrations of Credit Exposure (Unaudited)
----------------------------------------------------------------------
                             March 31,               Dec. 31, Mar. 31,
                               2003                    2002     2002
                                     Unused   Total   Total    Total
                    Outstanding Commitments Exposure Exposure Exposure
(dollars in millions)                          (1)
----------------------------------------------------------------------

Air Transportation
  Regional Passenger
   Carriers               $46.4      $12.3   $58.7     $57.3    $59.8
  United States Based
   Passenger Carriers      39.7          -    39.7      39.6     48.7
  International
   Based Passenger
   Carriers                31.9          -    31.9      32.1     32.4
  Cargo Carriers           14.7          -    14.7      15.0     14.8
----------------------------------------------------------------------
Total Air
 Transportation          $132.7      $12.3  $145.0    $144.0   $155.7
======================================================================

Guam
  Hotels                  $42.8         $-   $42.8     $44.4    $42.8
  Other Commercial        139.6       31.7   171.3     166.0    230.5
  Consumer                254.0        9.9   263.9     257.4    283.2
----------------------------------------------------------------------
Total Guam               $436.4      $41.6  $478.0    $467.8   $556.5
======================================================================

Syndicated Exposure      $319.4     $633.1  $952.5  $1,002.1 $1,352.2
======================================================================

(1)  Exposure includes loans, leveraged and operating leases.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Non-Performing Assets and Accruing Loans
Past Due 90 Days or More (Unaudited)                          Table 8
----------------------------------------------------------------------
                       March 31, Dec. 31, Sept. 30, June 30, March 31,
(dollars in millions)       2003     2002    2002(1)  2002(1)  2002(1)
----------------------------------------------------------------------

Non-Performing Assets
Non-Accrual Loans
  Commercial
     Commercial and
      Industrial             $2.4     $5.9     $6.4    $14.4    $27.4
     Commercial Mortgage     17.9     20.3     18.1     25.3     15.1
     Construction               -      0.5      0.9      0.7      1.0
     Lease Financing          3.2      4.1      5.7      6.9      4.4
----------------------------------------------------------------------
  Total Commercial           23.5     30.8     31.1     47.3     47.9
  Consumer
     Residential Mortgage    11.5     13.9     14.3     14.2     15.3
     Home Equity              0.1      0.3      0.2      0.1      0.4
     Other Consumer             -        -      0.1        -      0.1
----------------------------------------------------------------------
  Total Consumer             11.6     14.2     14.6     14.3     15.8
----------------------------------------------------------------------
Total Non-Accrual Loans      35.1     45.0     45.7     61.6     63.7
----------------------------------------------------------------------

Non-Accrual Loans Held
 for Sale                       -        -        -        -      7.8

Foreclosed Real Estate        9.1      9.4     17.6     17.2     19.2

----------------------------------------------------------------------
Total Non-Performing
 Assets                     $44.2    $54.4    $63.3    $78.8    $90.7
======================================================================

Accruing Loans Past Due
 90 Days or More
  Commercial
     Commercial and
      Industrial               $-     $0.2       $-       $-     $0.2
     Commercial Mortgage      0.4      0.3        -        -      1.2
----------------------------------------------------------------------
  Total Commercial            0.4      0.5        -        -      1.4
  Consumer
     Residential Mortgage     1.6      0.6      1.4      0.9      2.1
     Other Consumer           2.3      0.7      0.3      0.5      0.7
     Lease Financing            -        -        -      0.1      0.1
----------------------------------------------------------------------
  Total Consumer              3.9      1.3      1.7      1.5      2.9
----------------------------------------------------------------------
Total Accruing and Past
 Due                         $4.3     $1.8     $1.7     $1.5     $4.3
======================================================================

Total Loans              $5,565.4 $5,359.0 $5,259.3 $5,409.2 $5,601.6
======================================================================

Ratio of Non-Accrual
 Loans to Total Loans        0.63%    0.84%    0.87%    1.14%    1.14%
----------------------------------------------------------------------

Ratio of Non-Performing Assets to
 Total Loans, Foreclosed
 Real Estate and
 Non-Performing Loans
  Held for Sale              0.79%    1.01%    1.20%    1.45%    1.61%
----------------------------------------------------------------------

Ratio of Non-Performing Assets
 and Accruing Loans
 Past Due 90 Days or More
 to Total Loans              0.87%    1.05%    1.24%    1.48%    1.70%
----------------------------------------------------------------------

Quarter to Quarter Changes in
 Non-Performing Assets
Balance at Beginning
 of Quarter                 $54.4    $63.3    $78.8    $90.7    $79.7
  Additions                   4.8     12.0      7.0     20.5     36.4
  Reductions
       Payments and Sales
        of Loans             (5.6)    (6.9)    (8.5)   (20.6)   (12.9)
       Return to Accrual     (5.6)    (1.9)    (9.1)    (6.2)    (6.3)
       Sales of
        Foreclosed Assets    (1.1)    (9.4)    (1.4)    (3.5)    (0.9)
       Charge-offs           (2.7)    (2.7)    (3.5)    (2.1)    (5.3)
----------------------------------------------------------------------
  Total Reductions          (15.0)   (20.9)   (22.5)   (32.4)   (25.4)

----------------------------------------------------------------------
Balance at End of Quarter   $44.2    $54.4    $63.3    $78.8    $90.7
======================================================================

(1) Certain 2002 information has been reclassified to conform to
2003 presentation.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Allowance for Loan and Lease Losses (Unaudited)  Table 9
----------------------------------------------------------------------
                                             Three Months Ended(1)
                                          March 31, Dec. 31, March 31,
(dollars in millions)                         2003     2002      2002
----------------------------------------------------------------------

Balance at Beginning of Period               $142.9   $154.5   $159.0
Loans Charged-Off
    Commercial
       Commercial and Industrial               (1.6)    (2.0)    (7.3)
       Construction                            (0.5)       -     (0.5)
       Lease Financing                            -     (9.6)       -
    Consumer
       Residential Mortgage                    (0.7)    (0.4)    (1.4)
       Home Equity                             (0.1)    (0.1)    (0.1)
       Other Consumer                          (3.1)    (2.8)    (3.7)
       Lease Financing                         (0.1)    (0.1)    (0.1)
----------------------------------------------------------------------
Total Charge-Offs                              (6.1)   (15.0)   (13.1)
Recoveries on Loans Previously Charged-Off
    Commercial
       Commercial and Industrial                0.6      1.4      0.7
       Commercial Mortgage                        -      0.1      1.8
       Construction                             0.9      0.2        -
    Consumer
       Residential Mortgage                     0.2      0.3      0.3
       Home Equity                              0.1        -      0.1
       Other Consumer                           1.3      1.3      1.8
       Lease Financing                          0.1      0.1        -
    Foreign                                     0.1        -      0.1
----------------------------------------------------------------------
Total Recoveries                                3.3      3.4      4.8
----------------------------------------------------------------------
Net Loan Charge-Offs                           (2.8)   (11.6)    (8.3)
Provision for Loan and Lease Losses               -        -      8.3
----------------------------------------------------------------------
Balance at End of Period (2)                 $140.0   $142.9   $159.0
======================================================================

Average Loans Outstanding                  $5,460.8 $5,210.4 $5,585.4
======================================================================

Ratio of Net Charge-Offs to Average Loans
 Outstanding (annualized)                      0.21%    0.88%    0.60%
Ratio of Allowance to Loans Outstanding        2.52%    2.67%    2.84%

(1) Certain 2002 information has been reclassified to conform to
2003 presentation.

(2) Totals may not add due to rounding.

Bank of Hawaii Corporation and Subsidiaries
Information Technology Systems Replacement Project
(Unaudited)                                                   Table 10
----------------------------------------------------------------------
                 Professional   Employee  Accelerated    Other   Total
                         Fees Termination Depreciation Associated
(dollars in millions)           Benefits               Costs(1)
----------------------------------------------------------------------

Costs Incurred:
Three Months Ended:
   September 30, 2002   $1.9      $1.0       $3.2        $0.5    $6.6
   December 31, 2002     3.2       0.2        2.2         1.4     7.0
----------------------------------------------------------------------
Year Ended
 December 31, 2002       5.1       1.2        5.4         1.9    13.6
Three Months Ended
 March 31, 2003          3.5       0.4        2.0         1.5     7.4
----------------------------------------------------------------------
Total Costs Incurred    $8.6      $1.6       $7.4        $3.4   $21.0
======================================================================

Total Expected
 Project Costs         $13.1      $5.9       $9.2        $7.3   $35.5
======================================================================


(1) Includes contract termination, equipment, excise tax and other
costs.


Bank of Hawaii Corporation and Subsidiaries
Business Segment Selected Financial Information
(Unaudited)                                                   Table 11
----------------------------------------------------------------------
                                     Investment Treasury
                  Retail  Commercial   Services and Other Consolidated
(dollars in       Banking    Banking      Group Corporate        Total
 thousands)
----------------------------------------------------------------------

Three Months Ended March 31, 2003

Net Interest
 Income           $54,988    $36,383    $3,970    $(4,341)    $91,000
Provision for
 Loan and Lease
 Losses              (848)    (2,151)        -      2,999           -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and Lease
 Losses            54,140     34,232     3,970     (1,342)     91,000
Non-Interest
 Income            17,364      8,415    15,680      3,294      44,753
----------------------------------------------------------------------
                   71,504     42,647    19,650      1,952     135,753
Information
 Technology Systems
 Replacement Project (583)       (23)     (244)    (6,567)     (7,417)
Non-Interest
 Expense          (40,846)   (22,541)  (15,904)    (3,492)    (82,783)
----------------------------------------------------------------------
Income Before
 Income Taxes      30,075     20,083     3,502     (8,107)     45,553
Provision for
 Income Taxes     (11,128)    (7,334)   (1,296)     4,006     (15,752)
----------------------------------------------------------------------
Allocated Net
 Income (Loss)     18,947     12,749     2,206     (4,101)     29,801
----------------------------------------------------------------------
Allowance
 Funding Value       (152)    (1,141)      (10)     1,303           -
GAAP Provision        848      2,151         -     (2,999)          -
Economic
 Provision         (2,708)    (3,058)     (132)        (6)     (5,904)
Tax Effect of
 Adjustments          744        758        53        629       2,184
Capital Charge     (5,403)    (5,367)   (1,517)   (14,464)    (26,751)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $12,276     $6,092      $600   $(19,638)      $(670)
======================================================================

RAROC (ROE for
 the Company)          36%        24%       16%       (4)%         12%
======================================================================

Total Assets at
 March 31, 2003 $3,471,677 $2,242,681 $145,925 $3,549,927   $9,410,210
======================================================================


Three Months Ended March 31, 2002

Net Interest
 Income           $49,556    $35,630    $3,001     $6,708     $94,895
Provision for
 Loan and Lease
 Losses            (1,942)    (6,510)        -        160      (8,292)
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and Lease
 Losses            47,614     29,120     3,001      6,868      86,603
Non-Interest
 Income            24,052      8,621    17,824      2,528      53,025
----------------------------------------------------------------------
                   71,666     37,741    20,825      9,396     139,628
Restructuring
 and Other
 Related Costs          -          -         -     (1,979)     (1,979)
Non-Interest
 Expense          (46,314)   (24,955)  (16,061)    (2,114)    (89,444)
----------------------------------------------------------------------
Income Before
 Income Taxes      25,352     12,786     4,764      5,303      48,205
Provision for
 Income Taxes      (9,380)    (4,655)   (1,763)    (1,351)    (17,149)
----------------------------------------------------------------------
Allocated Net
 Income            15,972      8,131     3,001      3,952      31,056
----------------------------------------------------------------------
Allowance
 Funding Value       (267)    (1,551)       (7)     1,825           -
GAAP Provision      1,942      6,510         -       (160)      8,292
Economic
 Provision         (2,504)    (4,239)     (127)        (1)     (6,871)
Tax Effect of
 Adjustments          307       (266)       50       (617)       (526)
Capital Charge     (5,323)    (6,559)   (1,501)   (21,366)    (34,749)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $10,127     $2,026    $1,416   $(16,367)    $(2,798)
======================================================================

RAROC (ROE for
 the Company)          32%        15%       22%        24%         10%
======================================================================

Total Assets at
 March 31, 2002 $3,243,345 $2,598,482  $113,914 $4,289,280 $10,245,021
======================================================================

Bank of Hawaii Corporation and Subsidiaries
Quarterly Summary of Selected
 Consolidated Financial Data (Unaudited)                     Table 12
----------------------------------------------------------------------
                                  Three Months Ended (1)
(dollars in thousands  March 31, Dec. 31, Sept. 30, June 30, March 31,
except per share amounts)  2003     2002      2002     2002      2002
----------------------------------------------------------------------

Quarterly Operating Results
Interest Income
   Interest and Fees
    on Loan and Leases  $85,773  $85,945   $89,335  $92,441   $98,645
   Income on Investment
    Securities -
    Held to Maturity      2,283    3,122     3,963    4,544     5,145
   Income on Investment
    Securities -
    Available for Sale   22,463   24,088    26,175   26,805    27,193
   Deposits               1,307    3,578     5,384    6,011     5,047
   Funds Sold and
    Security Resale
    Agreements              764      834       914      752     1,003
   Other                  1,189    1,312     1,575    1,395     1,332
------------------- --------------------------------------------------
Total Interest Income   113,779  118,879   127,346  131,948   138,365
Interest Expense
   Deposits              14,447   17,657    20,547   22,166    23,978
   Security Repurchase
    Agreements            2,242    4,585     7,039    8,256    10,293
   Funds Purchased          205      255       299      245       231
   Short-Term Borrowings     24      217       334      289       649
   Long-Term Debt         5,861    5,947     6,946    8,055     8,319
----------------------------------------------------------------------
Total Interest
 Expense                 22,779   28,661    35,165   39,011    43,470
----------------------------------------------------------------------
Net Interest Income      91,000   90,218    92,181   92,937    94,895
Provision for Loan
 and Lease Losses           -         -         -     3,324     8,292
----------------------------------------------------------------------
Net Interest Income
 After Provision for
 Loan and Lease Losses   91,000   90,218    92,181   89,613    86,603
Non-Interest Income
   Trust and Asset
    Management           13,190   13,085    13,655   14,175    14,818
   Mortgage Banking         283    4,398     3,669    2,842     7,957
   Service Charges
    on Deposit Accounts   8,950    8,326     7,925    7,956     8,410
   Fees, Exchange,
    and Other
    Service Charges      12,980   12,963    13,114   13,065    12,452
   Investment
    Securities Gains        583      612         -        3         -
   Insurance              2,982    3,099     2,677    2,563     2,599
   Other                  5,785    7,872     5,997    7,314     6,789
----------------------------------------------------------------------
Total Non-Interest
 Income                  44,753   50,355    47,037   47,918    53,025
Non-Interest Expense
   Salaries              36,459   38,462    37,994   37,884    39,187
   Pensions and
    Other Employee
    Benefits              9,970    6,272     7,377    9,391     9,996
   Net Occupancy Expense  9,613   10,638     9,597    9,321     9,593
   Net Equipment Expense  9,748   11,077    10,058    9,997    10,121
   Restructuring and Other
    Related Costs           -        385         -        -     1,979
   Information Technology
    Systems Replacement
    Project               7,417    7,052     6,576        -        -
   Other                 16,993   22,827    20,141   22,777    20,547
----------------------------------------------------------------------
Total Non-Interest
 Expense                 90,200   96,713    91,743   89,370    91,423
----------------------------------------------------------------------
Income Before
 Income Taxes            45,553   43,860    47,475   48,161    48,205
Provision for
 Income Taxes            15,752   14,952    17,275   17,145    17,149
----------------------------------------------------------------------
Net Income              $29,801  $28,908   $30,200  $31,016   $31,056
======================================================================

Basic Earnings Per Share  $0.49    $0.45     $0.44    $0.43     $0.42
Diluted Earnings
 Per Share                $0.47    $0.44     $0.43    $0.42     $0.41

Balance Sheet Totals
Total Assets        9,410,210 9,516,418 9,702,700 9,824,065 10,245,021
Net Loans           5,425,343 5,216,151 5,104,857 5,250,216  5,442,601
Total Deposits      6,987,331 6,920,161 6,627,673 6,455,981  6,543,781
Total Shareholders'
 Equity               952,007 1,015,759 1,100,706 1,191,072  1,265,907

Performance Ratios
Return on Average Assets   1.31%    1.20%     1.22%    1.23%     1.21%
Return on Average Equity  12.42%   10.72%    10.40%    9.94%     9.97%
Efficiency Ratio          66.44%   68.80%    65.90%   63.45%    61.81%
Efficiency Ratio
 excluding ITSRP
 and Restructuring Costs  60.98%   63.51%    61.18%   63.45%    60.47%


(1) Certain 2002 information has been reclassified to conform to
2003 presentation.

SOURCE:
Bank of Hawaii

Bank of Hawaii Corporation
Stafford Kiguchi, 808/537-8580 (Media)
pager: 877/849-5423
E-mail: skiguchi@boh.com
or
Cindy Wyrick, 808/537-8430 (Investor/Analyst)
E-mail: cwyrick@boh.com

http://www.businesswire.com

Print Page
Email Alerts
RSS Feeds
Request Information