SEC Filing | Bank of Hawaii Corporation

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934



	Date of Report
	(Date of earliest event reported)		April 23, 2018

BANK OF HAWAII CORPORATION

(Exact name of registrant as specified in its charter)



Delaware	1-6887	99-0148992
(State of Incorporation)	(Commission	(IRS Employer
	File Number)	Identification No.)



130 Merchant Street, Honolulu, Hawaii		96813
(Address of principal executive offices)		(Zip Code)



(Registrant's telephone number,
including area code)			(888) 643-3888

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

o Emerging growth company

o If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 2.02. Results of Operations and Financial Condition.

On April 23, 2018, Bank of Hawaii Corporation announced its results of operations for the quarter ended March 31, 2018. The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.


(d)	Exhibits

Exhibit No.

99.1 April 23, 2018 Press Release: Bank of Hawaii Corporation First Quarter 2018 Financial Results. Any internet addresses provided in this release are for informational purposes only and are not intended to be hyperlinks. Furnished herewith.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



Date: April 23, 2018	Bank of Hawaii Corporation


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

Exhibit

Bank of Hawaii Corporation First Quarter 2018 Financial Results

Ÿ Diluted Earnings Per Share $1.28

Ÿ Net Income $54.0 Million

Ÿ Board of Directors Authorizes Increased Dividend of $0.60 Per Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (April 23, 2018) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $1.28 for the first quarter of 2018, up from $1.01 in the previous quarter and up from $1.20 in the same quarter last year. Net income for the first quarter of 2018 was $54.0 million, an increase of $11.0 million compared with net income of $43.0 million in the fourth quarter of 2017 and up $2.8 million from net income of $51.2 million in the first quarter of 2017.

The Company’s Board of Directors declared a quarterly cash dividend of $0.60 per share on the Company’s outstanding shares, an increase of 15.4 percent from the cash dividend of $0.52 per share in the previous quarter. The dividend will be payable on June 14, 2018 to shareholders of record at the close of business on May 31, 2018.

"We were pleased with our financial performance during the first quarter of 2018," said Peter S. Ho, Chairman, President, and CEO. “Our balance sheet remained strong, our net interest margin expanded, asset quality continued its stable trend, and expenses were well controlled. We continue to make solid progress in transforming our branches to the new Branch of Tomorrow concept, with six locations now completed, the most recent being Pearlridge in January.”

The return on average assets for the first quarter of 2018 was 1.29 percent, an increase from 1.00 percent during the previous quarter and 1.26 percent in the same quarter last year. The return on average equity for the first quarter of 2018 was 17.74 percent, up from 13.85 percent in the fourth quarter of 2017 and 17.63 percent in the first quarter of 2017. The efficiency ratio during the first quarter of 2018 was 57.91 percent compared with 57.49 percent in the previous quarter and 53.42 percent in the same quarter last year.

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Bank of Hawaii Corporation First Quarter 2018 Financial Results Page 2

Financial Highlights

Net interest income, on a taxable-equivalent basis, for the first quarter of 2018 was $120.3 million, down $1.3 million from net interest income of $121.6 million in the fourth quarter of 2017 and up $7.4 million from net interest income of $112.9 million in the first quarter of 2017. The net interest margin was 3.00 percent for the first quarter of 2018, up 2 basis points compared with 2.98 percent in the previous quarter and up 11 basis points from 2.89 percent for the first quarter last year. The net interest margin in the first quarter of 2018 was negatively impacted by 4 basis points due to revisions in the tax-equivalent adjustment as a result of the Tax Cuts and Jobs Act. There was no impact on net interest income as a result of this revision. Net interest income, on a reported basis, for the first quarter of 2018 was $119.0 million, up $0.2 million from net interest income of $118.8 million in the fourth quarter of 2017 and up $9.1 million from net interest income of $108.9 million in the first quarter of 2017. Analyses of the changes in net interest income are included in Tables 8a and 8b.

Results for the first quarter of 2018 included a provision for credit losses of $4.1 million compared with a provision for credit losses of $4.3 million in the fourth quarter of 2017 and a provision for credit losses of $4.4 million in the first quarter of 2017.

Noninterest income was $44.0 million in the first quarter of 2018, an increase of $2.1 million compared with noninterest income of $41.9 million in the fourth quarter of 2017 and a decrease of $11.9 million compared with noninterest income of $55.9 million in the first quarter of 2017. Noninterest income in the first quarter of 2018 included $2.8 million resulting from a low-income housing investment sale and distribution. There were no significant items in noninterest income during the fourth quarter of 2017. Noninterest income in the first quarter of 2017 included a gain of $12.5 million resulting from the sale of 90,000 Visa Class B shares.

Noninterest expense was $94.4 million in the first quarter of 2018, an increase of $2.1 million compared with noninterest expense of $92.3 million in the fourth quarter of 2017 and an increase of $5.8 million from noninterest expense of $88.6 million in the same quarter last year. Noninterest expense in the first quarter of 2018 included seasonal payroll expenses of approximately $2.5 million, a legal reserve of $2.0 million, and severance expenses of $1.0 million. Noninterest expense in the fourth quarter of 2017 included one-time employee bonuses of $2.2 million. Noninterest expense in the first quarter of 2017 included seasonal payroll expenses of approximately $2.5 million. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the first quarter of 2018 was 16.19 percent compared with an effective tax rate of 32.93 percent in the previous quarter and 29.72 percent during the same quarter last year. The provision for income taxes was $10.4 million in the first quarter of 2018, a decrease of $10.6 million or 50.5 percent compared with the fourth quarter of 2017 and a decrease of $11.2 million or 51.8 percent compared to the first quarter in 2017. The lower effective tax rate in the first quarter of 2018 was primarily due to the reduction in the federal corporate tax rate from 35 percent to 21 percent as a result of the Tax Cuts and Jobs Act. The tax rate during the first quarter of 2018 was also favorably impacted by a $2.0 million adjustment to the Company’s low-income housing investments. The effective tax rate for the fourth quarter of 2017 included a $3.6 million one-time unfavorable adjustment related to the tax reform bill. The first quarter of 2017 included tax benefits from the exercise of stock options and the vesting of restricted stock which were $1.1 million higher, when compared to the first quarter of 2018.

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Bank of Hawaii Corporation First Quarter 2018 Financial Results Page 3

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

Asset Quality

The Company’s strong asset quality remained stable during the first quarter of 2018. Total non-performing assets decreased to $15.7 million at March 31, 2018, down from non-performing assets of $16.1 million at December 31, 2017 and $19.0 million at March 31, 2017. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.16 percent at the end of the first quarter of 2018, unchanged from the end of the fourth quarter of 2017 and down from 0.21 percent at the end of the first quarter last year.

Accruing loans and leases past due 90 days or more were $8.2 million at March 31, 2018, compared with $7.1 million at December 31, 2017 and $5.9 million at March 31, 2017. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $56.7 million at March 31, 2018, up from $55.7 million at December 31, 2017 and $53.0 million at March 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 loans and leases charged off during the first quarter of 2018 were $3.5 million or 0.15 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $6.0 million during the quarter were partially offset by recoveries of $2.5 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 $5.8 million in charge-offs partially offset by recoveries of $2.1 million. Net charge-offs during the first quarter of 2017 were $3.6 million or 0.16 percent annualized of total average loans and leases outstanding and were comprised of $5.7 million in charge-offs partially offset by recoveries of $2.1 million.

The allowance for loan and lease losses was $107.9 million at March 31, 2018, an increase from $107.3 million at December 31, 2017 and up from $105.1 million at March 31, 2017. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.09 percent at March 31, 2018 compared with 1.10 percent at December 31, 2017 and 1.15 percent at March 31, 2017. The reserve for unfunded commitments was $6.8 million at March 31, 2018, unchanged from December 31, 2017 and up from $6.6 million at March 31, 2017. 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 $17.14 billion at March 31, 2018, up from $17.09 billion at December 31, 2017 and $16.66 billion at March 31, 2017. Average total assets were $16.96 billion during the first quarter of 2018, a decrease from average total assets of $17.08 billion during the previous quarter and an increase from $16.43 billion during the same quarter last year.

The investment securities portfolio was $5.97 billion at March 31, 2018 compared with $6.16 billion at December 31, 2017 and $6.19 billion at March 31, 2017. The portfolio at March 31, 2018 remains largely comprised of securities issued by U. S. government agencies and includes $3.79 billion in securities held to maturity and $2.18 billion in securities available for sale.

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Bank of Hawaii Corporation First Quarter 2018 Financial Results Page 4

Total loans and leases were $9.92 billion at March 31, 2018, up 1.2 percent from $9.80 billion at December 31, 2017 and up 8.8 percent from $9.11 billion at March 31, 2017. Average total loans and leases were $9.80 billion during the first quarter of 2018, up from $9.69 billion during the fourth quarter of 2017 and $9.02 billion during the same quarter last year.

The commercial loan portfolio was $3.79 billion at the end of the first quarter of 2018, up 0.7 percent from commercial loans of $3.77 billion at the end of the fourth quarter of 2017 and up 4.5 percent from $3.63 billion at the end of the same quarter last year. The consumer loan portfolio increased to $6.12 billion at the end of the first quarter of 2018, up 1.5 percent from consumer loans of $6.03 billion at the end of the fourth quarter of 2017 and up 11.7 percent from $5.48 billion at the end of the same quarter last year. Loan and lease portfolio balances are summarized in Table 10.

Total deposits increased to $14.96 billion at March 31, 2018 compared with total deposits of $14.88 billion at December 31, 2017 and $14.48 billion at March 31, 2017. Average total deposits were $14.72 billion during the first quarter of 2018 compared with $14.81 billion during the previous quarter and $14.22 billion during the same quarter last year.

Consumer deposits remained strong, increasing to $7.67 billion at the end of the first quarter of 2018, up 2.5 percent from consumer deposits of $7.48 billion the previous quarter and up 6.5 percent from $7.20 billion in the first quarter last year. Commercial deposits were $5.90 billion at the end of the first quarter of 2018, down 1.3 percent from commercial deposits of $5.97 billion during the previous quarter and down 2.6 percent from $6.05 billion in the first quarter last year. Other deposits, including public funds, were $1.39 billion at the end of the first quarter, down 2.7 percent from other deposits of $1.43 billion in the previous quarter and up 13.5 percent compared with $1.23 billion in the same quarter last year. Deposit balances are summarized in Tables 7 and 10.

Total shareholders’ equity increased to $1.24 billion at March 31, 2018 compared with total shareholder’s equity of $1.23 billion at December 31, 2017 and $1.19 billion at March 31, 2017. The Tier 1 Capital Ratio was 13.37 percent at March 31, 2018 compared with 13.24 percent at December 31, 2017 and 13.41 percent at March 31, 2017. The Tier 1 Leverage Ratio at March 31, 2018 was 7.46 percent compared with 7.26 percent at December 31, 2017 and 7.29 percent at March 31, 2017.

During the first quarter of 2018, the Company repurchased 165.5 thousand shares of common stock at a total cost of $13.9 million under its share repurchase program. The average cost was $84.23 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through March 31, 2018, the Company has repurchased 54.4 million shares and returned over $2.0 billion to shareholders at an average cost of $38.43 per share. Remaining buyback authority under the share repurchase program was $106.1 million at March 31, 2018. From April 1 through April 20, 2018 the Company repurchased an additional 60.0 thousand shares of common stock at an average cost of $82.75 per share.

Hawaii Economy

General economic conditions in Hawaii remained positive during the first quarter of 2018 due to continuation of the strong tourism market, active construction industry, low unemployment, and robust real estate market.

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Bank of Hawaii Corporation First Quarter 2018 Financial Results Page 5

The statewide seasonally-adjusted unemployment rate remains very low at 2.1 percent in March 2018 compared to 4.1 percent nationally. For the first two months of 2018, total visitor arrivals increased 7.7 percent and visitor spending increased 8.5 percent compared to the same period in 2017. All four larger Hawaiian Islands recorded increases in both visitor spending and arrivals compared to last year. For the first quarter of 2018, single-family home sales on Oahu decreased 0.4 percent and condominium sales increased 0.7 percent compared with the same period last year. During the first quarter of 2018, the median sales price of a single-family home on Oahu increased 2.0 percent and the median sales price of a condominium on Oahu increased 9.0 percent compared with the same period last year. As of March 31, 2018, the inventory of single-family homes on Oahu was 2.1 months and the inventory of condominiums was 2.6 months. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its first quarter financial results today at 2:00 p.m. Eastern Daylight Time (8:00 a.m. Hawaii 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 at approximately 11:00 a.m. Hawaii Time on Monday, April 23, 2018. 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 5756239 when prompted. Participants can also dial 1 (800) 585-8367 to access the replay. 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 have not committed 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
	March 31,			December 31,			March 31,
(dollars in thousands, except per share amounts)	2018			2017			2017
For the Period:
Operating Results
Net Interest Income	$	118,956		$	118,770		$	109,872
Provision for Credit Losses	4,125			4,250			4,400
Total Noninterest Income	44,035			41,855			55,916
Total Noninterest Expense	94,384			92,336			88,568
Net Income	54,040			42,953			51,176
Basic Earnings Per Share	1.29			1.02			1.21
Diluted Earnings Per Share	1.28			1.01			1.20
Dividends Declared Per Share	0.52			0.52			0.50

Performance Ratios
Return on Average Assets	1.29		%	1.00		%	1.26		%
Return on Average Shareholders' Equity	17.74			13.85			17.63
Efficiency Ratio ¹	57.91			57.49			53.42
Net Interest Margin ²	3.00			2.98			2.89
Dividend Payout Ratio³	40.31			50.98			41.32
Average Shareholders' Equity to Average Assets	7.29			7.20			7.16

Average Balances
Average Loans and Leases	$	9,803,753		$	9,688,710		$	9,020,351
Average Assets	16,957,430			17,084,596			16,434,606
Average Deposits	14,720,266			14,813,218			14,218,886
Average Shareholders' Equity	1,235,550			1,230,564			1,177,326

Per Share of Common Stock
Book Value	$	29.33		$	29.05		$	27.92
Tangible Book Value	28.59			28.31			27.18
Market Value
Closing	83.10			85.70			82.36
High	89.09			88.38			90.80
Low	78.40			77.71			77.03

	March 31,			December 31,			March 31,
	2018			2017			2017
As of Period End:
Balance Sheet Totals
Loans and Leases	$	9,916,628		$	9,796,947		$	9,113,809
Total Assets	17,136,030			17,089,052			16,664,215
Total Deposits	14,957,133			14,883,968			14,476,533
Other Debt	235,699			260,716			267,921
Total Shareholders' Equity	1,241,193			1,231,868			1,193,137

Asset Quality
Non-Performing Assets	$	15,736		$	16,120		$	19,003
Allowance for Loan and Lease Losses	107,938			107,346			105,064
Allowance to Loans and Leases Outstanding	1.09		%	1.10		%	1.15		%

Capital Ratios
Common Equity Tier 1 Capital Ratio	13.37		%	13.24		%	13.41		%
Tier 1 Capital Ratio	13.37			13.24			13.41
Total Capital Ratio	14.59			14.46			14.66
Tier 1 Leverage Ratio	7.46			7.26			7.29
Total Shareholders' Equity to Total Assets	7.24			7.21			7.16
Tangible Common Equity to Tangible Assets ⁴	7.07			7.04			6.98
Tangible Common Equity to Risk-Weighted Assets⁴	12.80			12.84			13.04

Non-Financial Data
Full-Time Equivalent Employees	2,138			2,132			2,115
Branches	69			69			69
ATMs	377			387			441

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."



Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures								Table 2
		March 31,			December 31,			March 31,
(dollars in thousands)		2018			2017			2017

Total Shareholders' Equity		$	1,241,193		$	1,231,868		$	1,193,137
Less:	Goodwill	31,517			31,517			31,517
Tangible Common Equity		$	1,209,676		$	1,200,351		$	1,161,620

Total Assets		$	17,136,030		$	17,089,052		$	16,664,215
Less:	Goodwill	31,517			31,517			31,517
Tangible Assets		$	17,104,513		$	17,057,535		$	16,632,698

Risk-Weighted Assets, determined in accordance
	with prescribed regulatory requirements	$	9,451,647		$	9,348,296		$	8,908,024

Total Shareholders' Equity to Total Assets		7.24		%	7.21		%	7.16		%
Tangible Common Equity to Tangible Assets (Non-GAAP)		7.07		%	7.04		%	6.98		%

Tier 1 Capital Ratio		13.37		%	13.24		%	13.41		%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)		12.80		%	12.84		%	13.04		%



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income							Table 3
	Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands, except per share amounts)	2018			2017			2017
Interest Income
Interest and Fees on Loans and Leases	$	97,634		$	96,974		$	87,937
Income on Investment Securities
Available-for-Sale	12,141			11,866			11,084
Held-to-Maturity	21,296			21,782			19,706
Deposits	18			3			5
Funds Sold	757			717			890
Other	300			271			230
Total Interest Income	132,146			131,613			119,852
Interest Expense
Deposits	7,581			6,980			3,691
Securities Sold Under Agreements to Repurchase	4,564			4,664			5,185
Funds Purchased	53			81			3
Short-Term Borrowings	16			—			—
Other Debt	976			1,118			1,101
Total Interest Expense	13,190			12,843			9,980
Net Interest Income	118,956			118,770			109,872
Provision for Credit Losses	4,125			4,250			4,400
Net Interest Income After Provision for Credit Losses	114,831			114,520			105,472
Noninterest Income
Trust and Asset Management	11,181			11,105			11,479
Mortgage Banking	2,145			2,593			3,300
Service Charges on Deposit Accounts	7,129			8,053			8,325
Fees, Exchange, and Other Service Charges	14,333			13,784			13,332
Investment Securities Gains (Losses), Net	(666		)	(617		)	12,133
Annuity and Insurance	1,206			1,273			1,995
Bank-Owned Life Insurance	1,842			1,609			1,497
Other	6,865			4,055			3,855
Total Noninterest Income	44,035			41,855			55,916
Noninterest Expense
Salaries and Benefits	54,422			51,698			51,165
Net Occupancy	8,534			8,510			8,168
Net Equipment	5,527			5,454			5,501
Data Processing	3,891			4,310			3,410
Professional Fees	2,773			3,266			2,779
FDIC Insurance	2,157			2,253			2,209
Other	17,080			16,845			15,336
Total Noninterest Expense	94,384			92,336			88,568
Income Before Provision for Income Taxes	64,482			64,039			72,820
Provision for Income Taxes	10,442			21,086			21,644
Net Income	$	54,040		$	42,953		$	51,176
Basic Earnings Per Share	$	1.29		$	1.02		$	1.21
Diluted Earnings Per Share	$	1.28		$	1.01		$	1.20
Dividends Declared Per Share	$	0.52		$	0.52		$	0.50
Basic Weighted Average Shares	42,038,573			42,116,452			42,406,006
Diluted Weighted Average Shares	42,358,425			42,450,191			42,749,866

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
		March 31,			December 31,			March 31,
(dollars in thousands)		2018			2017			2017
Net Income		$	54,040		$	42,953		$	51,176
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities	(9,121		)	(10,430		)	4,894
	Defined Benefit Plans	216			738			146
Other Comprehensive Income (Loss)		(8,905		)	(9,692		)	5,040
Comprehensive Income		$	45,135		$	33,261		$	56,216



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition							Table 5
	March 31,			December 31,			March 31,
(dollars in thousands)	2018			2017			2017
Assets
Interest-Bearing Deposits in Other Banks	$	2,589		$	3,421		$	3,486
Funds Sold	387,766			181,413			620,065
Investment Securities
Available-for-Sale	2,184,187			2,232,979			2,341,570
Held-to-Maturity (Fair Value of $3,711,149; $3,894,121; and $3,848,609)	3,789,092			3,928,170			3,848,088
Loans Held for Sale	23,548			19,231			20,899
Loans and Leases	9,916,628			9,796,947			9,113,809
Allowance for Loan and Lease Losses	(107,938		)	(107,346		)	(105,064		)
Net Loans and Leases	9,808,690			9,689,601			9,008,745
Total Earning Assets	16,195,872			16,054,815			15,842,853
Cash and Due from Banks	174,871			263,017			119,972
Premises and Equipment, Net	137,201			130,926			114,865
Accrued Interest Receivable	52,941			50,485			48,654
Foreclosed Real Estate	2,768			1,040			2,529
Mortgage Servicing Rights	24,493			24,622			24,291
Goodwill	31,517			31,517			31,517
Bank-Owned Life Insurance	280,537			280,034			275,685
Other Assets	235,830			252,596			203,849
Total Assets	$	17,136,030		$	17,089,052		$	16,664,215

Liabilities
Deposits
Noninterest-Bearing Demand	$	4,759,777		$	4,724,300		$	4,593,783
Interest-Bearing Demand	3,028,373			3,082,563			2,886,573
Savings	5,397,291			5,389,013			5,596,080
Time	1,771,692			1,688,092			1,400,097
Total Deposits	14,957,133			14,883,968			14,476,533
Funds Purchased	—			—			4,616
Securities Sold Under Agreements to Repurchase	505,293			505,293			505,292
Other Debt	235,699			260,716			267,921
Retirement Benefits Payable	37,046			37,312			48,436
Accrued Interest Payable	8,229			6,946			6,410
Taxes Payable and Deferred Taxes	29,557			24,009			42,046
Other Liabilities	121,880			138,940			119,824
Total Liabilities	15,894,837			15,857,184			15,471,078
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: March 31, 2018 - 58,051,646 / 42,314,414;
December 31, 2017 - 57,959,074 / 42,401,443;
and March 31, 2017 - 57,962,462 / 42,736,032)	577			576			576
Capital Surplus	563,598			561,161			553,898
Accumulated Other Comprehensive Loss	(51,097		)	(34,715		)	(28,866		)
Retained Earnings	1,551,900			1,512,218			1,444,495
Treasury Stock, at Cost (Shares: March 31, 2018 - 15,737,232;
December 31, 2017 - 15,557,631; and March 31, 2017 - 15,226,430)	(823,785		)	(807,372		)	(776,966		)
Total Shareholders' Equity	1,241,193			1,231,868			1,193,137
Total Liabilities and Shareholders' Equity	$	17,136,030		$	17,089,052		$	16,664,215



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, 2017		42,401,443		$	576	$	561,161	$	(34,715	)	$	1,512,218		$	(807,372	)	$	1,231,868
Net Income		—		—		—		—			54,040			—			54,040
Other Comprehensive Loss		—		—		—		(8,905		)	—			—			(8,905		)
Reclassification of the Income Tax Effects of the
	Tax Cuts and Jobs Act from AOCI	—		—		—		(7,477		)	7,477			—			—
Share-Based Compensation		—		—		1,867		—			—			—			1,867
Common Stock Issued under Purchase and Equity
	Compensation Plans and Related Tax Benefits	121,299		1		570		—			252			1,128			1,951
Common Stock Repurchased		(208,328	)	—		—		—			—			(17,541		)	(17,541		)
Cash Dividends Declared ($0.52 per share)		—		—		—		—			(22,087		)	—			(22,087		)
Balance as of March 31, 2018		42,314,414		$	577	$	563,598	$	(51,097	)	$	1,551,900		$	(823,785	)	$	1,241,193

Balance as of December 31, 2016		42,635,978		$	576	$	551,628	$	(33,906	)	$	1,415,440		$	(772,201	)	$	1,161,537
Net Income		—		—		—		—			51,176			—			51,176
Other Comprehensive Income		—		—		—		5,040			—			—			5,040
Share-Based Compensation		—		—		1,735		—			—			—			1,735
Common Stock Issued under Purchase and Equity
	Compensation Plans and Related Tax Benefits	235,803		—		535		—			(702		)	6,744			6,577
Common Stock Repurchased		(135,749	)	—		—		—			—			(11,509		)	(11,509		)
Cash Dividends Declared ($0.50 per share)		—		—		—		—			(21,419		)	—			(21,419		)
Balance as of March 31, 2017		42,736,032		$	576	$	553,898	$	(28,866	)	$	1,444,495		$	(776,966	)	$	1,193,137



Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																Table 7
		Three Months Ended						Three Months Ended						Three Months Ended
		March 31, 2018						December 31, 2017						March 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		$	3.0	$	—	2.34	%	$	3.2	$	—	0.46	%	$	3.3	$	—	0.57	%
Funds Sold		204.7		0.8		1.48		221.0		0.7		1.27		544.1		0.9		0.65
Investment Securities
	Available-for-Sale
	Taxable	1,595.1		8.9		2.23		1,669.7		8.5		2.05		1,625.4		7.5		1.87
	Non-Taxable	604.7		4.1		2.74		619.0		5.1		3.29		660.7		5.4		3.26
	Held-to-Maturity
	Taxable	3,631.2		19.8		2.18		3,775.6		20.3		2.15		3,589.8		18.2		2.03
	Non-Taxable	238.0		1.9		3.18		239.0		2.3		3.87		241.8		2.4		3.89
Total Investment Securities		6,069.0		34.7		2.29		6,303.3		36.2		2.30		6,117.7		33.5		2.19
Loans Held for Sale		14.1		0.1		3.76		15.9		0.2		4.02		30.4		0.3		3.99
Loans and Leases ¹
	Commercial and Industrial	1,280.9		11.8		3.73		1,284.5		11.7		3.62		1,263.7		10.5		3.38
	Commercial Mortgage	2,096.4		20.6		3.99		2,063.2		20.2		3.89		1,881.5		17.5		3.76
	Construction	189.4		2.1		4.45		213.8		2.6		4.78		259.1		2.9		4.54
	Commercial Lease Financing	179.6		1.0		2.21		202.6		1.3		2.56		208.7		1.1		2.18
	Residential Mortgage	3,478.2		33.3		3.83		3,420.0		32.6		3.81		3,201.7		30.9		3.86
	Home Equity	1,595.4		14.6		3.70		1,552.4		14.3		3.65		1,367.4		12.0		3.56
	Automobile	541.5		5.6		4.19		516.3		5.8		4.43		461.7		5.8		5.04
	Other ²	442.4		8.6		7.91		435.9		8.5		7.80		376.6		7.3		7.89
Total Loans and Leases		9,803.8		97.6		4.02		9,688.7		97.0		3.98		9,020.4		88.0		3.94
Other		40.7		0.3		2.95		40.6		0.3		2.67		40.1		0.2		2.30
Total Earning Assets ³		16,135.3		133.5		3.33		16,272.7		134.4		3.29		15,756.0		122.9		3.14
Cash and Due from Banks		228.6						229.5						132.2
Other Assets		593.5						582.4						546.4
Total Assets		$	16,957.4					$	17,084.6					$	16,434.6

Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,978.1	0.8		0.10		$	2,877.7	0.5		0.06		$	2,866.4	0.3		0.04
	Savings	5,366.3		2.1		0.16		5,396.9		1.9		0.14		5,406.2		1.3		0.09
	Time	1,713.5		4.7		1.11		1,767.9		4.6		1.03		1,313.7		2.1		0.65
Total Interest-Bearing Deposits		10,057.9		7.6		0.31		10,042.5		7.0		0.28		9,586.3		3.7		0.16
Short-Term Borrowings		19.1		0.1		1.45		25.0		0.1		1.27		9.5		—		0.15
Securities Sold Under Agreements to Repurchase		505.3		4.5		3.61		505.3		4.6		3.61		512.2		5.2		4.05
Other Debt		257.1		1.0		1.54		267.6		1.1		1.66		267.9		1.1		1.66
Total Interest-Bearing Liabilities		10,839.4		13.2		0.49		10,840.4		12.8		0.47		10,375.9		10.0		0.39
Net Interest Income				$	120.3					$	121.6					$	112.9
	Interest Rate Spread					2.84	%					2.82	%					2.75	%
	Net Interest Margin					3.00	%					2.98	%					2.89	%
Noninterest-Bearing Demand Deposits		4,662.4						4,770.7						4,632.6
Other Liabilities		220.0						242.9						248.8
Shareholders' Equity		1,235.6						1,230.6						1,177.3
Total Liabilities and Shareholders' Equity		$	16,957.4					$	17,084.6					$	16,434.6


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 $1,344,000 for the three months ended
	March 31, 2018 and $2,808,000 and $3,061,000 for the three months ended December 31, 2017 and March 31, 2017, respectively.



Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended March 31, 2018
	Compared to December 31, 2017
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	—		$	0.1		$	0.1
Investment Securities
Available-for-Sale
Taxable	(0.4		)	0.8			0.4
Non-Taxable	(0.1		)	(0.9		)	(1.0		)
Held-to-Maturity
Taxable	(0.8		)	0.3			(0.5		)
Non-Taxable	—			(0.4		)	(0.4		)
Total Investment Securities	(1.3		)	(0.2		)	(1.5		)
Loans Held for Sale	(0.1		)	—			(0.1		)
Loans and Leases
Commercial and Industrial	—			0.1			0.1
Commercial Mortgage	0.1			0.3			0.4
Construction	(0.3		)	(0.2		)	(0.5		)
Commercial Lease Financing	(0.1		)	(0.2		)	(0.3		)
Residential Mortgage	0.5			0.2			0.7
Home Equity	0.2			0.1			0.3
Automobile	0.2			(0.4		)	(0.2		)
Other ²	—			0.1			0.1
Total Loans and Leases	0.6			—			0.6
Total Change in Interest Income	(0.8		)	(0.1		)	(0.9		)

Change in Interest Expense:
Interest-Bearing Deposits
Demand	—			0.3			0.3
Savings	—			0.2			0.2
Time	(0.2		)	0.3			0.1
Total Interest-Bearing Deposits	(0.2		)	0.8			0.6
Securities Sold Under Agreements to Repurchase	—			(0.1		)	(0.1		)
Other Debt	—			(0.1		)	(0.1		)
Total Change in Interest Expense	(0.2		)	0.6			0.4

Change in Net Interest Income	$	(0.6	)	$	(0.7	)	$	(1.3	)


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 March 31, 2018
	Compared to March 31, 2017
(dollars in millions)	Volume ¹			Rate¹			Total
Change in Interest Income:
Funds Sold	$	(0.8	)	$	0.7		$	(0.1	)
Investment Securities
Available-for-Sale
Taxable	—			1.4			1.4
Non-Taxable	(0.5		)	(0.8		)	(1.3		)
Held-to-Maturity
Taxable	0.2			1.4			1.6
Non-Taxable	—			(0.5		)	(0.5		)
Total Investment Securities	(0.3		)	1.5			1.2
Loans Held for Sale	(0.2		)	—			(0.2		)
Loans and Leases
Commercial and Industrial	0.2			1.1			1.3
Commercial Mortgage	2.0			1.1			3.1
Construction	(0.8		)	—			(0.8		)
Commercial Lease Financing	(0.1		)	—			(0.1		)
Residential Mortgage	2.6			(0.2		)	2.4
Home Equity	2.1			0.5			2.6
Automobile	0.9			(1.1		)	(0.2		)
Other ²	1.3			—			1.3
Total Loans and Leases	8.2			1.4			9.6
Other	—			0.1			0.1
Total Change in Interest Income	6.9			3.7			10.6

Change in Interest Expense:
Interest-Bearing Deposits
Demand	—			0.5			0.5
Savings	—			0.8			0.8
Time	0.8			1.8			2.6
Total Interest-Bearing Deposits	0.8			3.1			3.9
Short-Term Borrowings	—			0.1			0.1
Securities Sold Under Agreements to Repurchase	(0.1		)	(0.6		)	(0.7		)
Other Debt	—			(0.1		)	(0.1		)
Total Change in Interest Expense	0.7			2.5			3.2

Change in Net Interest Income	$	6.2		$	1.2		$	7.4


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
	March 31,		December 31,		March 31,
(dollars in thousands)	2018		2017		2017
Salaries	$	32,704	$	31,132	$	29,425
Incentive Compensation	5,178		7,078		5,774
Share-Based Compensation	2,081		3,040		2,303
Commission Expense	954		1,427		1,836
Retirement and Other Benefits	4,841		4,178		4,604
Payroll Taxes	4,172		2,301		3,944
Medical, Dental, and Life Insurance	3,461		2,503		3,279
Separation Expense	1,031		39		—
Total Salaries and Benefits	$	54,422	$	51,698	$	51,165


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
		March 31,		December 31,		September 30,		June 30,		March 31,
(dollars in thousands)		2018		2017		2017		2017		2017
Commercial
	Commercial and Industrial	$	1,329,096	$	1,279,347	$	1,252,238	$	1,241,953	$	1,250,006
	Commercial Mortgage	2,097,339		2,103,967		2,050,998		2,009,886		1,909,064
	Construction	186,530		202,253		232,487		248,030		262,660
	Lease Financing	179,771		180,931		204,240		205,043		208,765
Total Commercial		3,792,736		3,766,498		3,739,963		3,704,912		3,630,495
Consumer
	Residential Mortgage	3,505,239		3,466,773		3,366,634		3,317,179		3,224,206
	Home Equity	1,601,698		1,585,455		1,528,353		1,473,123		1,411,489
	Automobile	558,468		528,474		506,102		484,092		468,078
	Other ¹	458,487		449,747		432,904		408,307		379,541
Total Consumer		6,123,892		6,030,449		5,833,993		5,682,701		5,483,314
Total Loans and Leases		$	9,916,628	$	9,796,947	$	9,573,956	$	9,387,613	$	9,113,809


Deposits
		March 31,		December 31,		September 30,		June 30,		March 31,
(dollars in thousands)		2018		2017		2017		2017		2017
Consumer		$	7,665,926	$	7,478,228	$	7,303,546	$	7,278,536	$	7,196,781
Commercial		5,897,194		5,973,763		6,091,800		5,903,639		6,051,721
Public and Other		1,394,013		1,431,977		1,652,814		1,602,474		1,228,031
Total Deposits		$	14,957,133	$	14,883,968	$	15,048,160	$	14,784,649	$	14,476,533


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
			March 31,			December 31,			September 30,			June 31,			March 31,
(dollars in thousands)			2018			2017			2017			2017			2017
Non-Performing Assets
Non-Accrual Loans and Leases
	Commercial
		Commercial and Industrial	$	986		$	448		$	901		$	175		$	228
		Commercial Mortgage	1,367			1,398			1,425			1,460			973
	Total Commercial		2,353			1,846			2,326			1,635			1,201
	Consumer
		Residential Mortgage	6,725			9,243			9,188			9,337			11,756
		Home Equity	3,890			3,991			4,128			3,405			3,517
	Total Consumer		10,615			13,234			13,316			12,742			15,273
Total Non-Accrual Loans and Leases			12,968			15,080			15,642			14,377			16,474
Foreclosed Real Estate			2,768			1,040			1,393			1,991			2,529
Total Non-Performing Assets			$	15,736		$	16,120		$	17,035		$	16,368		$	19,003

Accruing Loans and Leases Past Due 90 Days or More
Commercial
	Commercial and Industrial		$	—		$	—		$	5		$	—		$	—
Total Commercial			—			—			5			—			—
Consumer
	Residential Mortgage		$	2,927		$	2,703		$	2,933		$	2,269		$	2,313
	Home Equity		3,013			1,624			1,392			2,343			1,133
	Automobile		333			886			806			539			673
	Other ¹		1,895			1,934			1,528			1,859			1,738
Total Consumer			8,168			7,147			6,659			7,010			5,857
Total Accruing Loans and Leases Past Due 90 Days or More			$	8,168		$	7,147		$	6,664		$	7,010		$	5,857
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More			$	56,743		$	55,672		$	55,038		$	53,158		$	52,965
Total Loans and Leases			$	9,916,628		$	9,796,947		$	9,573,956		$	9,387,613		$	9,113,809

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.13		%	0.15		%	0.16		%	0.15		%	0.18		%

Ratio of Non-Performing Assets to Total Loans and Leases
	and Foreclosed Real Estate		0.16		%	0.16		%	0.18		%	0.17		%	0.21		%

Ratio of Commercial Non-Performing Assets to Total Commercial Loans
	and Leases and Commercial Foreclosed Real Estate		0.06		%	0.05		%	0.06		%	0.04		%	0.03		%

Ratio of Consumer Non-Performing Assets to Total Consumer Loans
	and Leases and Consumer Foreclosed Real Estate		0.22		%	0.24		%	0.25		%	0.26		%	0.32		%

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		0.24		%	0.24		%	0.25		%	0.25		%	0.27		%

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter			$	16,120		$	17,035		$	16,368		$	19,003		$	19,761
Additions			2,332			2,109			2,212			1,572			1,221
Reductions
	Payments		(1,251		)	(368		)	(199		)	(497		)	(1,017		)
	Return to Accrual Status		(1,270		)	(1,779		)	(305		)	(1,370		)	(645		)
	Sales of Foreclosed Real Estate		—			(353		)	(951		)	(1,883		)	—
	Charge-offs/Write-downs		(195		)	(524		)	(90		)	(457		)	(317		)
Total Reductions			(2,716		)	(3,024		)	(1,545		)	(4,207		)	(1,979		)
Balance at End of Quarter			$	15,736		$	16,120		$	17,035		$	16,368		$	19,003


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
			March 31,			December 31,			March 31,
(dollars in thousands)			2018			2017			2017
Balance at Beginning of Period			$	114,168		$	113,703		$	110,845
Loans and Leases Charged-Off
	Commercial
		Commercial and Industrial	(206		)	(499		)	(174		)
	Consumer
		Residential Mortgage	(97		)	(4		)	(183		)
		Home Equity	(91		)	(221		)	(363		)
		Automobile	(2,254		)	(2,014		)	(2,290		)
		Other ¹	(3,340		)	(3,108		)	(2,694		)
Total Loans and Leases Charged-Off			(5,988		)	(5,846		)	(5,704		)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
		Commercial and Industrial	328			284			336
		Lease Financing	—			1			—
	Consumer
		Residential Mortgage	220			182			104
		Home Equity	625			498			508
		Automobile	599			576			620
		Other ¹	683			520			527
Total Recoveries on Loans and Leases Previously Charged-Off			2,455			2,061			2,095
Net Loans and Leases Charged-Off			(3,533		)	(3,785		)	(3,609		)
Provision for Credit Losses			4,125			4,250			4,400
Provision for Unfunded Commitments			—			—			—
Balance at End of Period ²			$	114,760		$	114,168		$	111,636

Components
Allowance for Loan and Lease Losses			$	107,938		$	107,346		$	105,064
Reserve for Unfunded Commitments			6,822			6,822			6,572
Total Reserve for Credit Losses			$	114,760		$	114,168		$	111,636

Average Loans and Leases Outstanding			$	9,803,753		$	9,688,710		$	9,020,351

Ratio of Net Loans and Leases Charged-Off to
	Average Loans and Leases Outstanding (annualized)		0.15		%	0.15		%	0.16		%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding			1.09		%	1.10		%	1.15		%


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 13
							Investment
							Services and
	Retail			Commercial			Private			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Banking			and Other			Total
Three Months Ended March 31, 2018
Net Interest Income	$	64,397		$	42,898		$	9,887		$	1,774		$	118,956
Provision for Credit Losses	3,743			(151		)	(60		)	593			4,125
Net Interest Income After Provision for Credit Losses	60,654			43,049			9,947			1,181			114,831
Noninterest Income	19,253			5,642			13,670			5,470			44,035
Noninterest Expense	(54,599		)	(20,332		)	(16,207		)	(3,246		)	(94,384		)
Income Before Provision for Income Taxes	25,308			28,359			7,410			3,405			64,482
Provision for Income Taxes	(6,291		)	(6,824		)	(1,954		)	4,627			(10,442		)
Net Income	$	19,017		$	21,535		$	5,456		$	8,032		$	54,040
Total Assets as of March 31, 2018	$	6,041,271		$	3,771,678		$	332,454		$	6,990,627		$	17,136,030


Three Months Ended March 31, 2017
Net Interest Income	$	65,158		$	41,931		$	6,650		$	(3,867	)	$	109,872
Provision for Credit Losses	3,801			(188		)	(5		)	792			4,400
Net Interest Income After Provision for Credit Losses	61,357			42,119			6,655			(4,659		)	105,472
Noninterest Income	20,925			5,438			14,549			15,004			55,916
Noninterest Expense	(52,260		)	(18,355		)	(15,471		)	(2,482		)	(88,568		)
Income Before Provision for Income Taxes	30,022			29,202			5,733			7,863			72,820
Provision for Income Taxes	(10,673		)	(10,256		)	(2,121		)	1,406			(21,644		)
Net Income	$	19,349		$	18,946		$	3,612		$	9,269		$	51,176
Total Assets as of March 31, 2017	$	5,438,421		$	3,577,524		$	288,178		$	7,360,092		$	16,664,215



Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data																	Table 14
	Three Months Ended
	March 31,				December 31,				September 30,				June 30,				March 31,
(dollars in thousands, except per share amounts)	2018				2017				2017				2017				2017
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	97,634			$	96,974			$	94,621			$	90,909			$	87,937
Income on Investment Securities
Available-for-Sale	12,141				11,866				11,987				11,835				11,084
Held-to-Maturity	21,296				21,782				20,334				19,918				19,706
Deposits	18				3				5				2				5
Funds Sold	757				717				1,579				696				890
Other	300				271				235				208				230
Total Interest Income	132,146				131,613				128,761				123,568				119,852
Interest Expense
Deposits	7,581				6,980				6,663				4,998				3,691
Securities Sold Under Agreements to Repurchase	4,564				4,664				4,664				5,079				5,185
Funds Purchased	53				81				—				39				3
Short-Term Borrowings	16				—				—				64				—
Other Debt	976				1,118				1,117				1,109				1,101
Total Interest Expense	13,190				12,843				12,444				11,289				9,980
Net Interest Income	118,956				118,770				116,317				112,279				109,872
Provision for Credit Losses	4,125				4,250				4,000				4,250				4,400
Net Interest Income After Provision for Credit Losses	114,831				114,520				112,317				108,029				105,472
Noninterest Income
Trust and Asset Management	11,181				11,105				11,050				11,796				11,479
Mortgage Banking	2,145				2,593				3,237				3,819				3,300
Service Charges on Deposit Accounts	7,129				8,053				8,188				8,009				8,325
Fees, Exchange, and Other Service Charges	14,333				13,784				13,764				13,965				13,332
Investment Securities Gains (Losses), Net	(666		)		(617		)		(566		)		(520		)		12,133
Annuity and Insurance	1,206				1,273				1,429				2,161				1,995
Bank-Owned Life Insurance	1,842				1,609				1,861				1,550				1,497
Other	6,865				4,055				3,447				4,456				3,855
Total Noninterest Income	44,035				41,855				42,410				45,236				55,916
Noninterest Expense
Salaries and Benefits	54,422				51,698				51,190				49,676				51,165
Net Occupancy	8,534				8,510				7,727				8,131				8,168
Net Equipment	5,527				5,454				5,417				5,706				5,501
Data Processing	3,891				4,310				3,882				3,881				3,410
Professional Fees	2,773				3,266				3,044				2,592				2,779
FDIC Insurance	2,157				2,253				2,107				2,097				2,209
Other	17,080				16,845				15,231				16,106				15,336
Total Noninterest Expense	94,384				92,336				88,598				88,189				88,568
Income Before Provision for Income Taxes	64,482				64,039				66,129				65,076				72,820
Provision for Income Taxes	10,442				21,086				20,248				20,414				21,644
Net Income	$	54,040			$	42,953			$	45,881			$	44,662			$	51,176

Basic Earnings Per Share	$	1.29			$	1.02			$	1.09			$	1.05			$	1.21
Diluted Earnings Per Share	$	1.28			$	1.01			$	1.08			$	1.05			$	1.20

Balance Sheet Totals
Loans and Leases	$	9,916,628			$	9,796,947			$	9,573,956			$	9,387,613			$	9,113,809
Total Assets	17,136,030				17,089,052				17,268,302				16,981,292				16,664,215
Total Deposits	14,957,133				14,883,968				15,048,160				14,784,649				14,476,533
Total Shareholders' Equity	1,241,193				1,231,868				1,227,893				1,213,757				1,193,137

Performance Ratios
Return on Average Assets	1.29			%	1.00			%	1.07			%	1.09			%	1.26		%
Return on Average Shareholders' Equity	17.74				13.85				14.89				14.87				17.63
Efficiency Ratio ¹	57.91				57.49				55.82				55.99				53.42
Net Interest Margin ²	3.00				2.98				2.92				2.92				2.89

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
	Two Months Ended				Year Ended
($ in millions; jobs in thousands)	February 28, 2018				December 31, 2017						December 31, 2016
Hawaii Economic Trends
State General Fund Revenues ¹	$	1,233.5	10.4	%	$	6,485.5			4.3	%	$	6,215.4		3.6	%
General Excise and Use Tax Revenue ¹	$	675.8	17.3	%	$	3,349.8			4.5	%	$	3,205.7		2.0	%
Jobs ²	669.4				668.2						669.4

									March 31,		December 31,
(spot rates)									2018		2017			2016
Unemployment ³
Statewide, seasonally adjusted									2.1	%	2.1		%	2.9	%

Oahu									1.8		1.7			2.4
Island of Hawaii									2.1		2.0			3.1
Maui									2.0		1.8			2.7
Kauai									1.7		1.7			2.8

					March 31,				December 31,
(percentage change, except months of inventory)					2018				2017		2016			2015
Housing Trends (Single Family Oahu) ⁴
Median Home Price					2.0			%	2.7	%	5.0		%	3.7	%
Home Sales Volume (units)					(0.4		)	%	6.3	%	6.5		%	5.2	%
Months of Inventory					2.1				2.1		2.5			2.6

					Monthly Visitor Arrivals,						Percentage Change
(in thousands)					Not Seasonally Adjusted						from Previous Year
Tourism 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									748.3					7.3
October 31, 2017									737.0					2.8
September 30, 2017									701.8					5.1
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
December 31, 2016									828.2					3.6
November 30, 2016									697.1					4.7
October 31, 2016									717.0					4.3
September 30, 2016									667.6					3.1
August 31, 2016									780.7					3.1
July 31, 2016									835.4					2.1
June 30, 2016									800.3					4.2
May 31, 2016									718.9					1.3
April 30, 2016									700.6					3.4
March 31, 2016									786.3					0.8
February 29, 2016									688.8					4.1
January 31, 2016									721.0					6.2

¹ Source: Hawaii Department of Business, Economic Development & Tourism
² Source: U. S. Bureau of Labor
³ Source: Hawaii Department of Labor and Industrial Relations, County jobs data as of February 28, 2018 and not seasonally adjusted.
⁴ Source: Honolulu Board of REALTORS
⁵ Source: Hawaii Tourism Authority
Note: Certain prior period seasonally adjusted information has been revised.