SEC Filing | Bank of Hawaii Corporation

View:

Download DOC

Download PDF

Download XLS

Document

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K/A

(Amendment No. 1)

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934



	Date of Report
	(Date of earliest event reported)		February 28, 2019 (January 28, 2019)

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.

Explanatory Note

This Amendment No. 1 on Form 8-K/A (this "Form 8-K/A") is an amendment to the Current Report of Form 8-K of Bank of Hawaii Corporation, dated January 28, 2019 (the "Original Form 8-K"). This Form 8-K/A is being filed for the purpose of correcting fiscal year end date from 10/24 to 12/31. No other changes were made to the Original Form 8-K. References to the exhibits in this Form 8-K/A are references to the exhibits filed with the Original Form 8-K.

Item 2.02. Results of Operations and Financial Condition.

On January 28, 2019, Bank of Hawaii Corporation announced its results of operations for the quarter ended December 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.

99.1January 28, 2019 Press Release: Bank of Hawaii Corporation Fourth 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: February 28, 2019	Bank of Hawaii Corporation


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

Exhibit

Bank of Hawaii Corporation 2018 Financial Results

•2018 Earnings $5.23 Per Diluted Share

•2018 Net Income $219.6 Million

•Diluted Earnings Per Share $1.30 for the Fourth Quarter of 2018

•Net Income $53.9 Million for the Fourth Quarter of 2018

•Board of Directors Declares Dividend of $0.62 Per Share

•Board of Directors Authorizes Increase in Share Repurchase of $130.0 Million

FOR IMMEDIATE RELEASE

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

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

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

- more -

Bank of Hawaii Corporation 2018 Financial Results Page 2

Financial Highlights

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

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

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

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

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

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

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

- more -

Bank of Hawaii Corporation 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 are determined based on the Company’s internal financial management reporting process and organizational structure. Selected financial information for the business segments is included in Tables 13a and 13b.

Asset Quality

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

Accruing loans and leases past due 90 days or more were $6.6 million at December 31, 2018 compared with $8.1 million at September 30, 2018 and $7.1 million at December 31, 2017. Restructured loans and leases not included in non-accrual loans or accruing loans past due 90 days or more declined to $48.7 million at December 31, 2018 compared with $49.5 million at September 30, 2018 and $55.7 million at December 31, 2017. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net charge-offs for the full year of 2018 were $14.1 million or 0.14 percent of total average loans and leases compared with net charge-offs of $13.8 million or 0.15 percent of total average loans and leases in 2017. Net charge-offs during the fourth quarter of 2018 were $4.0 million or 0.15 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $6.9 million partially offset by recoveries of $2.9 million. Net charge-offs during the third quarter of 2018 were $3.3 million or 0.13 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $6.0 million and recoveries of $2.7 million. Net charge-offs during the fourth quarter of 2017 were $3.8 million or 0.15 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $5.8 million and recoveries of $2.1 million.

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

Other Financial Highlights

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

- more -

Bank of Hawaii Corporation 2018 Financial Results Page 4

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

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

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

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

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

- more -

Bank of Hawaii Corporation 2018 Financial Results Page 5

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

Hawaii Economy

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

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

Conference Call Information

The Company will review its 2018 financial results today at 8:00 a.m. Hawaii Time (1:00 p.m. Eastern Time). The call will be accessible via teleconference and via the investor relations link of Bank of Hawaii Corporation's

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

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2017, which was filed with the U.S. Securities and Exchange Commission. We do not promise to update forward-looking statements to reflect later events or circumstances

Bank of Hawaii Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawaii, American Samoa, and the West Pacific. The Company's principal subsidiary, Bank of Hawaii, was founded in 1897. For more information about Bank of Hawaii Corporation, see the Company’s website, www.boh.com.

# # # #



Bank of Hawaii Corporation and Subsidiaries
Financial Highlights													Table 1
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
(dollars in thousands, except per share amounts)	2018			2018			2017			2018			2017
For the Period:
Operating Results
Net Interest Income	$	123,973		$	122,927		$	118,770		$	486,352		$	457,238
Provision for Credit Losses	2,000			3,800			4,250			13,425			16,900
Total Noninterest Income	42,108			41,482			41,855			168,923			185,417
Total Noninterest Expense	95,911			90,538			92,336			371,624			357,691
Net Income	53,911			56,933			42,953			219,602			184,672
Basic Earnings Per Share	1.30			1.37			1.02			5.26			4.37
Diluted Earnings Per Share	1.30			1.36			1.01			5.23			4.33
Dividends Declared Per Share	0.62			0.60			0.52			2.34			2.04

Performance Ratios
Return on Average Assets	1.26		%	1.33		%	1.00		%	1.29		%	1.10		%
Return on Average Shareholders' Equity	17.05			18.06			13.85			17.63			15.27
Efficiency Ratio ¹	57.75			55.07			57.49			56.71			55.66
Net Interest Margin ²	3.10			3.07			2.98			3.05			2.93
Dividend Payout Ratio ³	47.69			43.80			50.98			44.49			46.68
Average Shareholders' Equity to Average Assets	7.39			7.35			7.20			7.34			7.22

Average Balances
Average Loans and Leases	$	10,320,051		$	10,081,886		$	9,688,710		$	10,043,661		$	9,346,828
Average Assets	16,988,550			17,015,340			17,084,596			16,970,992			16,749,230
Average Deposits	14,779,511			14,820,480			14,813,218			14,757,724			14,505,423
Average Shareholders' Equity	1,254,704			1,250,500			1,230,564			1,245,672			1,209,087

Per Share of Common Stock
Book Value	$	30.56		$	29.98		$	29.05		$	30.56		$	29.05
Tangible Book Value	29.80			29.22			28.31			29.80			28.31
Market Value
Closing	67.32			78.91			85.70			67.32			85.70
High	82.80			86.53			88.38			89.09			90.80
Low	63.64			78.30			77.71			63.64			74.72

							December 31,			September 30,			December 31,
							2018			2018			2017
As of Period End:
Balance Sheet Totals
Loans and Leases							$	10,448,774		$	10,231,062		$	9,796,947
Total Assets							17,143,974			16,991,734			17,089,052
Total Deposits							15,027,242			14,843,335			14,883,968
Other Debt							135,643			185,662			260,716
Total Shareholders' Equity							1,268,200			1,253,327			1,231,868

Asset Quality
Non-Performing Assets							$	12,930		$	13,798		$	16,120
Allowance for Loan and Lease Losses							106,693			108,690			107,346
Allowance to Loans and Leases Outstanding							1.02		%	1.06		%	1.10		%

Capital Ratios
Common Equity Tier 1 Capital Ratio							13.07		%	13.20		%	13.24		%
Tier 1 Capital Ratio							13.07			13.20			13.24
Total Capital Ratio							14.21			14.38			14.46
Tier 1 Leverage Ratio							7.60			7.55			7.26
Total Shareholders' Equity to Total Assets							7.40			7.38			7.21
Tangible Common Equity to Tangible Assets ⁴							7.23			7.20			7.04
Tangible Common Equity to Risk-Weighted Assets ⁴							12.52			12.56			12.84

Non-Financial Data
Full-Time Equivalent Employees							2,122			2,143			2,132
Branches							69			69			69
ATMs							382			382			387

¹Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
²Net 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.

⁴Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 “Reconciliation of Non-GAAP Financial Measures."

Note: Common Equity Tier 1 and Tier 1 Capital Ratios were revised from 13.19% and Tangible Common Equity to Risk-Weighted Assets were revised from 12.55% as of September 30, 2018.



Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures								Table 2
		December 31,			September 30,			December 31,
(dollars in thousands)		2018			2018			2017

Total Shareholders' Equity		$	1,268,200		$	1,253,327		$	1,231,868
Less:	Goodwill	31,517			31,517			31,517
Tangible Common Equity		$	1,236,683		$	1,221,810		$	1,200,351

Total Assets		$	17,143,974		$	16,991,734		$	17,089,052
Less:	Goodwill	31,517			31,517			31,517
Tangible Assets		$	17,112,457		$	16,960,217		$	17,057,535

Risk-Weighted Assets, determined in accordance
	with prescribed regulatory requirements	$	9,878,904		$	9,731,082		$	9,348,296

Total Shareholders' Equity to Total Assets		7.40		%	7.38		%	7.21		%
Tangible Common Equity to Tangible Assets (Non-GAAP)		7.23		%	7.20		%	7.04		%

Tier 1 Capital Ratio		13.07		%	13.20		%	13.24		%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)		12.52		%	12.56		%	12.84		%

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



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income													Table 3
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
(dollars in thousands, except per share amounts)	2018			2018			2017			2018			2017
Interest Income
Interest and Fees on Loans and Leases	$	107,404		$	104,248		$	96,974		$	410,597		$	370,441
Income on Investment Securities
Available-for-Sale	13,043			12,588			11,866			50,152			46,772
Held-to-Maturity	21,482			20,821			21,782			84,310			81,740
Deposits	10			10			3			34			15
Funds Sold	727			1,393			717			3,723			3,882
Other	352			364			271			1,357			944
Total Interest Income	143,018			139,424			131,613			550,173			503,794
Interest Expense
Deposits	13,172			10,931			6,980			41,143			22,332
Securities Sold Under Agreements to Repurchase	4,671			4,667			4,664			18,519			19,592
Funds Purchased	440			33			81			609			123
Short-Term Borrowings	88			28			—			145			64
Other Debt	674			838			1,118			3,405			4,445
Total Interest Expense	19,045			16,497			12,843			63,821			46,556
Net Interest Income	123,973			122,927			118,770			486,352			457,238
Provision for Credit Losses	2,000			3,800			4,250			13,425			16,900
Net Interest Income After Provision for Credit Losses	121,973			119,127			114,520			472,927			440,338
Noninterest Income
Trust and Asset Management	10,558			10,782			11,105			43,877			45,430
Mortgage Banking	2,148			1,965			2,593			8,437			12,949
Service Charges on Deposit Accounts	7,562			7,255			8,053			28,811			32,575
Fees, Exchange, and Other Service Charges	14,576			14,173			13,784			57,482			54,845
Investment Securities Gains (Losses), Net	(841		)	(729		)	(617		)	(3,938		)	10,430
Annuity and Insurance	1,409			1,360			1,273			5,822			6,858
Bank-Owned Life Insurance	1,941			1,620			1,609			7,199			6,517
Other	4,755			5,056			4,055			21,233			15,813
Total Noninterest Income	42,108			41,482			41,855			168,923			185,417
Noninterest Expense
Salaries and Benefits	54,856			51,782			51,698			213,208			203,729
Net Occupancy	8,918			8,702			8,510			34,742			32,536
Net Equipment	6,364			6,116			5,454			23,852			22,078
Data Processing	5,151			4,241			4,310			17,846			15,483
Professional Fees	2,467			2,206			3,266			9,992			11,681
FDIC Insurance	1,336			2,057			2,253			7,732			8,666
Other	16,819			15,434			16,845			64,252			63,518
Total Noninterest Expense	95,911			90,538			92,336			371,624			357,691
Income Before Provision for Income Taxes	68,170			70,071			64,039			270,226			268,064
Provision for Income Taxes	14,259			13,138			21,086			50,624			83,392
Net Income	$	53,911		$	56,933		$	42,953		$	219,602		$	184,672
Basic Earnings Per Share	$	1.30		$	1.37		$	1.02		$	5.26		$	4.37
Diluted Earnings Per Share	$	1.30		$	1.36		$	1.01		$	5.23		$	4.33
Dividends Declared Per Share	$	0.62		$	0.60		$	0.52		$	2.34		$	2.04
Basic Weighted Average Shares	41,325,456			41,620,776			42,116,452			41,714,770			42,280,931
Diluted Weighted Average Shares	41,601,649			41,899,401			42,450,191			41,999,399			42,607,057

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



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income														Table 4
		Three Months Ended									Year Ended
		December 31,			September 30,			December 31,			December 31,
(dollars in thousands)		2018			2018			2017			2018			2017
Net Income		$	53,911		$	56,933		$	42,953		$	219,602		$	184,672
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities	11,169			(5,599		)	(10,430		)	(6,525		)	(1,986		)
	Defined Benefit Plans	(2,974		)	216			738			(2,326		)	1,177
Other Comprehensive Income (Loss)		8,195			(5,383		)	(9,692		)	(8,851		)	(809		)
Comprehensive Income		$	62,106		$	51,550		$	33,261		$	210,751		$	183,863



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition							Table 5
	December 31,			September 30,			December 31,
(dollars in thousands)	2018			2018			2017
Assets
Interest-Bearing Deposits in Other Banks	$	3,028		$	3,725		$	3,421
Funds Sold	198,860			104,199			181,413
Investment Securities
Available-for-Sale	2,007,942			2,049,687			2,232,979
Held-to-Maturity (Fair Value of $3,413,994; $3,549,235; and $3,894,121)	3,482,092			3,664,487			3,928,170
Loans Held for Sale	10,987			18,063			19,231
Loans and Leases	10,448,774			10,231,062			9,796,947
Allowance for Loan and Lease Losses	(106,693		)	(108,690		)	(107,346		)
Net Loans and Leases	10,342,081			10,122,372			9,689,601
Total Earning Assets	16,044,990			15,962,533			16,054,815
Cash and Due from Banks	324,081			227,049			263,017
Premises and Equipment, Net	151,837			142,928			130,926
Accrued Interest Receivable	51,230			54,839			50,485
Foreclosed Real Estate	1,356			1,909			1,040
Mortgage Servicing Rights	24,310			24,463			24,622
Goodwill	31,517			31,517			31,517
Bank-Owned Life Insurance	283,771			282,637			280,034
Other Assets	230,882			263,859			252,596
Total Assets	$	17,143,974		$	16,991,734		$	17,089,052

Liabilities
Deposits
Noninterest-Bearing Demand	$	4,739,596		$	4,678,981		$	4,724,300
Interest-Bearing Demand	3,002,925			2,975,069			3,082,563
Savings	5,539,199			5,444,053			5,389,013
Time	1,745,522			1,745,232			1,688,092
Total Deposits	15,027,242			14,843,335			14,883,968
Short-Term Borrowings	199			629			—
Securities Sold Under Agreements to Repurchase	504,296			504,293			505,293
Other Debt	135,643			185,662			260,716
Retirement Benefits Payable	40,494			36,288			37,312
Accrued Interest Payable	8,253			7,689			6,946
Taxes Payable and Deferred Taxes	19,736			15,549			24,009
Other Liabilities	139,911			144,962			138,940
Total Liabilities	15,875,774			15,738,407			15,857,184
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2018 - 58,063,689 / 41,499,898;
September 30, 2018 - 58,070,578 / 41,809,551;
and December 31, 2017 - 57,959,074 / 42,401,443)	577			577			576
Capital Surplus	571,704			569,223			561,161
Accumulated Other Comprehensive Loss	(51,043		)	(59,238		)	(34,715		)
Retained Earnings	1,641,314			1,612,998			1,512,218
Treasury Stock, at Cost (Shares: December 31, 2018 - 16,563,791;
September 30, 2018 - 16,261,027; and December 31, 2017 - 15,557,631)	(894,352		)	(870,233		)	(807,372		)
Total Shareholders' Equity	1,268,200			1,253,327			1,231,868
Total Liabilities and Shareholders' Equity	$	17,143,974		$	16,991,734		$	17,089,052



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																	Table 6
								Accum.
								Other
								Compre-
								hensive
		Common Shares		Common		Capital		Income			Retained			Treasury
(dollars in thousands)		Outstanding		Stock		Surplus		(Loss)			Earnings			Stock			Total
Balance as of December 31, 2016		42,635,978		$	576	$	551,628	$	(33,906	)	$	1,415,440		$	(772,201	)	$	1,161,537
Net Income		—		—		—		—			184,672			—			184,672
Other Comprehensive Loss		—		—		—		(809		)	—			—			(809		)
Share-Based Compensation		—		—		7,369		—			—			—			7,369
Common Stock Issued under Purchase and Equity
	Compensation Plans and Related Tax Benefits	337,091		—		2,164		—			(828		)	11,905			13,241
Common Stock Repurchased		(571,626	)	—		—		—			—			(47,076		)	(47,076		)
Cash Dividends Declared ($2.04 per share)		—		—		—		—			(87,066		)	—			(87,066		)
Balance as of December 31, 2017		42,401,443		$	576	$	561,161	$	(34,715	)	$	1,512,218		$	(807,372	)	$	1,231,868

Net Income		—		—		—		—			219,602			—			219,602
Other Comprehensive Loss		—		—		—		(8,851		)	—			—			(8,851		)
Reclassification of the Income Tax Effects of the
Tax Cuts and Jobs Act from AOCI		—		—		—		(7,477		)	7,477			—			—
Share-Based Compensation		—		—		8,146		—			—			—			8,146
Common Stock Issued under Purchase and Equity
	Compensation Plans and Related Tax Benefits	219,210		1		2,397		—			513			5,008			7,919
Common Stock Repurchased		(1,120,755	)	—		—		—			—			(91,988		)	(91,988		)
Cash Dividends Declared ($2.34 per share)		—		—		—		—			(98,496		)	—			(98,496		)
Balance as of December 31, 2018		41,499,898		$	577	$	571,704	$	(51,043	)	$	1,641,314		$	(894,352	)	$	1,268,200



Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																Table 7a
		Three Months Ended						Three Months Ended						Three Months Ended
		December 31, 2018						September 30, 2018						December 31, 2017
		Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	3.3	$	—	1.21	%	$	3.6	$	—	1.09	%	$	3.2	$	—	0.46	%
Funds Sold		128.2		0.7		2.22		281.9		1.4		1.93		221.0		0.7		1.27
Investment Securities
	Available-for-Sale
	Taxable	1,480.5		10.0		2.70		1,512.1		9.5		2.51		1,669.7		8.5		2.05
	Non-Taxable	556.4		3.8		2.77		567.5		3.9		2.75		619.0		5.1		3.29
	Held-to-Maturity
	Taxable	3,360.5		20.0		2.38		3,413.7		19.3		2.26		3,775.6		20.3		2.15
	Non-Taxable	235.1		1.9		3.16		236.1		1.9		3.16		239.0		2.3		3.87
Total Investment Securities		5,632.5		35.7		2.53		5,729.4		34.6		2.41		6,303.3		36.2		2.30
Loans Held for Sale		12.1		0.2		4.63		14.9		0.2		4.45		15.9		0.2		4.02
Loans and Leases ¹
	Commercial and Industrial	1,351.1		14.3		4.21		1,279.4		13.0		4.04		1,284.5		11.7		3.62
	Commercial Mortgage	2,256.0		24.2		4.25		2,180.5		23.0		4.19		2,063.2		20.2		3.89
	Construction	179.8		2.2		4.79		187.0		2.2		4.65		213.8		2.6		4.78
	Commercial Lease Financing	173.2		1.0		2.42		175.0		1.0		2.30		202.6		1.3		2.56
	Residential Mortgage	3,615.8		35.1		3.88		3,563.5		34.0		3.82		3,420.0		32.6		3.81
	Home Equity	1,652.4		15.7		3.78		1,622.4		15.7		3.83		1,552.4		14.3		3.65
	Automobile	641.8		6.0		3.73		606.3		5.9		3.84		516.3		5.8		4.43
	Other²	450.0		8.8		7.72		467.8		9.3		7.90		435.9		8.5		7.80
Total Loans and Leases		10,320.1		107.3		4.14		10,081.9		104.1		4.11		9,688.7		97.0		3.98
Other		36.8		0.4		3.82		38.9		0.4		3.74		40.6		0.3		2.67
Total Earning Assets ³		16,133.0		144.3		3.56		16,150.6		140.7		3.47		16,272.7		134.4		3.29
Cash and Due from Banks		234.3						252.1						229.5
Other Assets		621.3						612.6						582.4
Total Assets		$	16,988.6					$	17,015.3					$	17,084.6

Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,888.3	1.5		0.20		$	2,999.5	1.3		0.17		$	2,877.7	0.5		0.06
	Savings	5,494.5		4.5		0.32		5,482.4		3.8		0.28		5,396.9		1.9		0.14
	Time	1,800.7		7.2		1.59		1,683.0		5.8		1.37		1,767.9		4.6		1.03
Total Interest-Bearing Deposits		10,183.5		13.2		0.51		10,164.9		10.9		0.43		10,042.5		7.0		0.28
Short-Term Borrowings		89.6		0.5		2.31		11.6		0.1		2.06		25.0		0.1		1.27
Securities Sold Under Agreements to Repurchase		504.3		4.7		3.62		504.3		4.7		3.62		505.3		4.6		3.61
Other Debt		145.2		0.7		1.85		208.5		0.8		1.60		267.6		1.1		1.66
Total Interest-Bearing Liabilities		10,922.6		19.1		0.69		10,889.3		16.5		0.60		10,840.4		12.8		0.47
Net Interest Income				$	125.2					$	124.2					$	121.6
	Interest Rate Spread					2.87	%					2.87	%					2.82	%
	Net Interest Margin					3.10	%					3.07	%					2.98	%
Noninterest-Bearing Demand Deposits		4,596.0						4,655.6						4,770.7
Other Liabilities		215.3						219.9						242.9
Shareholders' Equity		1,254.7						1,250.5						1,230.6
Total Liabilities and Shareholders' Equity		$	16,988.6					$	17,015.3					$	17,084.6


¹ Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
² Comprised of other consumer revolving credit, installment, and consumer lease financing.
³ Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21% for 2018 and 35% for 2017, of $1,263,000 for the three months ended
	December 31, 2018, $1,265,000 for the three months ended September 30, 2018, and $2,808,000 for the three months ended December 31, 2017.



Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis												Table 7b
		Year Ended						Year Ended
		December 31, 2018						December 31, 2017
		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	3.2	$	—	1.05	%	$	3.4	$	—	0.45	%
Funds Sold		200.0		3.7		1.86		423.0		3.9		0.92
Investment Securities
	Available-for-Sale
	Taxable	1,537.7		37.6		2.44		1,659.3		33.1		2.00
	Non-Taxable	577.9		15.9		2.76		643.7		21.0		3.27
	Held-to-Maturity
	Taxable	3,468.4		78.4		2.26		3,648.6		75.7		2.07
	Non-Taxable	236.5		7.5		3.17		240.4		9.3		3.88
Total Investment Securities		5,820.5		139.4		2.39		6,192.0		139.1		2.25
Loans Held for Sale		14.0		0.6		4.31		22.6		0.9		3.99
Loans and Leases ¹
	Commercial and Industrial	1,304.8		51.9		3.98		1,262.8		44.5		3.52
	Commercial Mortgage	2,164.6		89.7		4.14		1,977.1		75.7		3.83
	Construction	184.9		8.6		4.68		238.4		11.2		4.69
	Commercial Lease Financing	176.8		4.1		2.29		205.9		4.8		2.32
	Residential Mortgage	3,546.5		136.0		3.84		3,307.6		126.4		3.82
	Home Equity	1,620.8		61.1		3.77		1,467.7		53.2		3.62
	Automobile	591.2		23.2		3.92		486.5		23.2		4.78
	Other²	454.1		35.6		7.85		400.8		31.8		7.93
Total Loans and Leases		10,043.7		410.2		4.08		9,346.8		370.8		3.97
Other		39.0		1.4		3.48		40.5		0.9		2.33
Total Earning Assets ³		16,120.4		555.3		3.44		16,028.3		515.6		3.22
Cash and Due from Banks		241.6						158.7
Other Assets		609.0						562.2
Total Assets		$	16,971.0					$	16,749.2

Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,958.8	4.7		0.16		$	2,871.7	1.7		0.06
	Savings	5,434.3		13.6		0.25		5,388.5		6.7		0.12
	Time	1,725.9		22.8		1.32		1,589.4		13.9		0.88
Total Interest-Bearing Deposits		10,119.0		41.1		0.41		9,849.6		22.3		0.23
Short-Term Borrowings		35.5		0.8		2.13		17.7		0.2		1.05
Securities Sold Under Agreements to Repurchase		504.7		18.5		3.67		507.0		19.6		3.86
Other Debt		211.3		3.4		1.61		267.9		4.4		1.66
Total Interest-Bearing Liabilities		10,870.5		63.8		0.59		10,642.2		46.5		0.44
Net Interest Income				$	491.5					$	469.1
	Interest Rate Spread					2.85	%					2.78	%
	Net Interest Margin					3.05	%					2.93	%
Noninterest-Bearing Demand Deposits		4,638.7						4,655.8
Other Liabilities		216.1						242.1
Shareholders' Equity		1,245.7						1,209.1
Total Liabilities and Shareholders' Equity		$	16,971.0					$	16,749.2


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



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

Change in Interest Expense:
Interest-Bearing Deposits
Demand	—			0.2			0.2
Savings	—			0.7			0.7
Time	0.4			1.0			1.4
Total Interest-Bearing Deposits	0.4			1.9			2.3
Short-Term Borrowings	0.4			—			0.4
Other Debt	(0.2		)	0.1			(0.1		)
Total Change in Interest Expense	0.6			2.0			2.6

Change in Net Interest Income	$	0.1		$	0.9		$	1.0


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



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

Change in Interest Expense:
Interest-Bearing Deposits
Demand	—			1.0			1.0
Savings	—			2.6			2.6
Time	0.1			2.5			2.6
Total Interest-Bearing Deposits	0.1			6.1			6.2
Short-Term Borrowings	0.3			0.1			0.4
Securities Sold Under Agreements to Repurchase	—			0.1			0.1
Other Debt	(0.5		)	0.1			(0.4		)
Total Change in Interest Expense	(0.1		)	6.4			6.3

Change in Net Interest Income	$	2.1		$	1.5		$	3.6


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



Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8c
	Year Ended December 31, 2018
	Compared to December 31, 2017
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	(2.8	)	$	2.6		$	(0.2	)
Investment Securities
Available-for-Sale
Taxable	(2.5		)	7.0			4.5
Non-Taxable	(2.0		)	(3.1		)	(5.1		)
Held-to-Maturity
Taxable	(3.9		)	6.6			2.7
Non-Taxable	(0.1		)	(1.7		)	(1.8		)
Total Investment Securities	(8.5		)	8.8			0.3
Loans Held for Sale	(0.4		)	0.1			(0.3		)
Loans and Leases
Commercial and Industrial	1.5			5.9			7.4
Commercial Mortgage	7.6			6.4			14.0
Construction	(2.5		)	(0.1		)	(2.6		)
Commercial Lease Financing	(0.7		)	—			(0.7		)
Residential Mortgage	9.1			0.5			9.6
Home Equity	5.7			2.2			7.9
Automobile	4.5			(4.5		)	—
Other ²	4.1			(0.3		)	3.8
Total Loans and Leases	29.3			10.1			39.4
Other	0.1			0.4			0.5
Total Change in Interest Income	17.7			22.0			39.7

Change in Interest Expense:
Interest-Bearing Deposits
Demand	0.1			2.9			3.0
Savings	0.1			6.8			6.9
Time	1.3			7.6			8.9
Total Interest-Bearing Deposits	1.5			17.3			18.8
Short-Term Borrowings	0.3			0.3			0.6
Securities Sold Under Agreements to Repurchase	(0.1		)	(1.0		)	(1.1		)
Other Debt	(0.9		)	(0.1		)	(1.0		)
Total Change in Interest Expense	0.8			16.5			17.3

Change in Net Interest Income	$	16.9		$	5.5		$	22.4


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



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


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



Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances										Table 10
		December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)		2018		2018		2018		2018		2017
Commercial
	Commercial and Industrial	$	1,331,149	$	1,314,609	$	1,282,967	$	1,329,096	$	1,279,347
	Commercial Mortgage	2,302,356		2,237,020		2,169,357		2,097,339		2,103,967
	Construction	170,061		176,447		185,350		186,530		202,253
	Lease Financing	176,226		172,232		178,598		179,771		180,931
Total Commercial		3,979,792		3,900,308		3,816,272		3,792,736		3,766,498
Consumer
	Residential Mortgage	3,673,796		3,596,627		3,548,444		3,505,239		3,466,773
	Home Equity	1,681,442		1,625,208		1,622,314		1,601,698		1,585,455
	Automobile	658,133		625,086		592,705		558,468		528,474
	Other ¹	455,611		483,833		473,588		458,487		449,747
Total Consumer		6,468,982		6,330,754		6,237,051		6,123,892		6,030,449
Total Loans and Leases		$	10,448,774	$	10,231,062	$	10,053,323	$	9,916,628	$	9,796,947


Deposits
		December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)		2018		2018		2018		2018		2017
Consumer		$	7,726,731	$	7,627,527	$	7,672,435	$	7,665,926	$	7,478,228
Commercial		6,098,186		5,967,343		5,921,414		5,897,194		5,973,763
Public and Other		1,202,325		1,248,465		1,349,509		1,394,013		1,431,977
Total Deposits		$	15,027,242	$	14,843,335	$	14,943,358	$	14,957,133	$	14,883,968


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



Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More															Table 11
			December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)			2018			2018			2018			2018			2017
Non-Performing Assets
Non-Accrual Loans and Leases
	Commercial
		Commercial and Industrial	$	542		$	1,205		$	917		$	986		$	448
		Commercial Mortgage	2,040			652			659			1,367			1,398
	Total Commercial		2,582			1,857			1,576			2,353			1,846
	Consumer
		Residential Mortgage	5,321			6,359			6,722			6,725			9,243
		Home Equity	3,671			3,673			3,933			3,890			3,991
	Total Consumer		8,992			10,032			10,655			10,615			13,234
Total Non-Accrual Loans and Leases			11,574			11,889			12,231			12,968			15,080
Foreclosed Real Estate			1,356			1,909			2,926			2,768			1,040
Total Non-Performing Assets			$	12,930		$	13,798		$	15,157		$	15,736		$	16,120

Accruing Loans and Leases Past Due 90 Days or More
Commercial
	Commercial and Industrial		$	10		$	—		$	2		$	—		$	—
	Commercial Mortgage		—			—			5,680			—			—
Total Commercial			10			—			5,682			—			—
Consumer
	Residential Mortgage		$	2,446		$	2,426		$	2,281		$	2,927		$	2,703
	Home Equity		2,684			3,112			3,016			3,013			1,624
	Automobile		513			829			674			333			886
	Other ¹		914			1,727			1,660			1,895			1,934
Total Consumer			6,557			8,094			7,631			8,168			7,147
Total Accruing Loans and Leases Past Due 90 Days or More			$	6,567		$	8,094		$	13,313		$	8,168		$	7,147
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More			$	48,731		$	49,462		$	50,212		$	56,743		$	55,672
Total Loans and Leases			$	10,448,774		$	10,231,062		$	10,053,323		$	9,916,628		$	9,796,947

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.11		%	0.12		%	0.12		%	0.13		%	0.15		%

Ratio of Non-Performing Assets to Total Loans and Leases
	and Foreclosed Real Estate		0.12		%	0.13		%	0.15		%	0.16		%	0.16		%

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

Ratio of Consumer Non-Performing Assets to Total Consumer Loans
	and Leases and Consumer Foreclosed Real Estate		0.16		%	0.19		%	0.22		%	0.22		%	0.24		%

Ratio of Non-Performing Assets and Accruing Loans and Leases
	Past Due 90 Days or More to Total Loans and Leases
	and Foreclosed Real Estate		0.19		%	0.21		%	0.28		%	0.24		%	0.24		%

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter			$	13,798		$	15,157		$	15,736		$	16,120		$	17,035
Additions			4,509			2,030			1,949			2,332			2,109
Reductions
	Payments		(3,759		)	(415		)	(1,847		)	(1,251		)	(368		)
	Return to Accrual Status		(605		)	(1,420		)	(126		)	(1,270		)	(1,779		)
	Sales of Foreclosed Real Estate		(653		)	(1,301		)	(421		)	—			(353		)
	Charge-offs/Write-downs		(360		)	(253		)	(134		)	(195		)	(524		)
Total Reductions			(5,377		)	(3,389		)	(2,528		)	(2,716		)	(3,024		)
Balance at End of Quarter			$	12,930		$	13,798		$	15,157		$	15,736		$	16,120


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



Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses															Table 12
			Three Months Ended									Year Ended
			December 31,			September 30,			December 31,			December 31,
(dollars in thousands)			2018			2018			2017			2018			2017
Balance at Beginning of Period			$	115,512		$	115,010		$	113,703		$	114,168		$	110,845
Loans and Leases Charged-Off
	Commercial
		Commercial and Industrial	(365		)	(449		)	(499		)	(1,505		)	(1,408		)
	Consumer
		Residential Mortgage	(1		)	—			(4		)	(101		)	(729		)
		Home Equity	(406		)	(124		)	(221		)	(665		)	(995		)
		Automobile	(2,335		)	(2,114		)	(2,014		)	(8,218		)	(7,737		)
		Other ¹	(3,781		)	(3,340		)	(3,108		)	(14,075		)	(12,386		)
Total Loans and Leases Charged-Off			(6,888		)	(6,027		)	(5,846		)	(24,564		)	(23,255		)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
		Commercial and Industrial	803			542			284			2,039			1,482
		Lease Financing	—			—			1			—			3
	Consumer
		Residential Mortgage	112			261			182			807			639
		Home Equity	367			558			498			2,001			2,681
		Automobile	949			616			576			2,902			2,495
		Other ¹	660			752			520			2,737			2,128
Total Recoveries on Loans and Leases Previously Charged-Off			2,891			2,729			2,061			10,486			9,428
Net Loans and Leases Charged-Off			(3,997		)	(3,298		)	(3,785		)	(14,078		)	(13,827		)
Provision for Credit Losses			2,000			3,800			4,250			13,425			16,900
Provision for Unfunded Commitments			—			—			—			—			250
			$	113,515		$	115,512		$	114,168		$	113,515		$	114,168

Components
Allowance for Loan and Lease Losses			$	106,693		$	108,690		$	107,346		$	106,693		$	107,346
Reserve for Unfunded Commitments			6,822			6,822			6,822			6,822			6,822
Total Reserve for Credit Losses			$	113,515		$	115,512		$	114,168		$	113,515		$	114,168

Average Loans and Leases Outstanding			$	10,320,051		$	10,081,886		$	9,688,710		$	10,043,661		$	9,346,828

Ratio of Net Loans and Leases Charged-Off to
	Average Loans and Leases Outstanding (annualized)		0.15		%	0.13		%	0.15		%	0.14		%	0.15		%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding			1.02		%	1.06		%	1.10		%	1.02		%	1.10		%

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



Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information													Table 13a
							Investment
							Services and
	Retail			Commercial			Private			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Banking			and Other			Total
Three Months Ended December 31, 2018
Net Interest Income	$	67,452		$	46,429		$	10,235		$	(143	)	$	123,973
Provision for Credit Losses	4,481			(484		)	(1		)	(1,996		)	2,000
Net Interest Income After Provision for Credit Losses	62,971			46,913			10,236			1,853			121,973
Noninterest Income	20,339			6,338			13,397			2,034			42,108
Noninterest Expense	(53,417		)	(20,912		)	(17,583		)	(3,999		)	(95,911		)
Income Before Provision for Income Taxes	29,893			32,339			6,050			(112		)	68,170
Provision for Income Taxes	(7,465		)	(7,714		)	(1,595		)	2,515			(14,259		)
Net Income	$	22,428		$	24,625		$	4,455		$	2,403		$	53,911
Total Assets as of December 31, 2018	$	6,365,263		$	3,958,523		$	349,832		$	6,470,356		$	17,143,974


Three Months Ended December 31, 2017
Net Interest Income	$	65,408		$	43,932		$	9,008		$	422		$	118,770
Provision for Credit Losses	3,595			195			(5		)	465			4,250
Net Interest Income After Provision for Credit Losses	61,813			43,737			9,013			(43		)	114,520
Noninterest Income	20,910			5,219			13,716			2,010			41,855
Noninterest Expense	(54,021		)	(19,726		)	(15,982		)	(2,607		)	(92,336		)
Income Before Provision for Income Taxes	28,702			29,230			6,747			(640		)	64,039
Provision for Income Taxes	(10,222		)	(10,325		)	(2,496		)	1,957			(21,086		)
Net Income	$	18,480		$	18,905		$	4,251		$	1,317		$	42,953
Total Assets as of December 31, 2017	$	5,936,568		$	3,742,991		$	336,455		$	7,073,038		$	17,089,052



Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information													Table 13b
							Investment
							Services and
	Retail			Commercial			Private			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Banking			and Other			Total
Year Ended December 31, 2018
Net Interest Income	$	264,459		$	179,577		$	41,222		$	1,094		$	486,352
Provision for Credit Losses	14,898			(760		)	(61		)	(652		)	13,425
Net Interest Income After Provision for Credit Losses	249,561			180,337			41,283			1,746			472,927
Noninterest Income	79,004			23,733			55,338			10,848			168,923
Noninterest Expense	(211,761		)	(81,344		)	(65,847		)	(12,672		)	(371,624		)
Income Before Provision for Income Taxes	116,804			122,726			30,774			(78		)	270,226
Provision for Income Taxes	(29,172		)	(28,496		)	(8,113		)	15,157			(50,624		)
Net Income	$	87,632		$	94,230		$	22,661		$	15,079		$	219,602
Total Assets as of December 31, 2018	$	6,365,263		$	3,958,523		$	349,832		$	6,470,356		$	17,143,974


Year Ended December 31, 2017
Net Interest Income	$	264,041		$	171,038		$	29,693		$	(7,534	)	$	457,238
Provision for Credit Losses	14,008			(160		)	(21		)	3,073			16,900
Net Interest Income After Provision for Credit Losses	250,033			171,198			29,714			(10,607		)	440,338
Noninterest Income	85,042			21,670			57,105			21,600			185,417
Noninterest Expense	(209,807		)	(74,209		)	(61,674		)	(12,001		)	(357,691		)
Income Before Provision for Income Taxes	125,268			118,659			25,145			(1,008		)	268,064
Provision for Income Taxes	(44,545		)	(41,797		)	(9,303		)	12,253			(83,392		)
Net Income	$	80,723		$	76,862		$	15,842		$	11,245		$	184,672
Total Assets as of December 31, 2017	$	5,936,568		$	3,742,991		$	336,455		$	7,073,038		$	17,089,052



Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data																	Table 14
	Three Months Ended
	December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands, except per share amounts)	2018				2018				2018				2018				2017
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	107,404			$	104,248			$	101,311			$	97,634			$	96,974
Income on Investment Securities
Available-for-Sale	13,043				12,588				12,380				12,141				11,866
Held-to-Maturity	21,482				20,821				20,711				21,296				21,782
Deposits	10				10				(4		)		18				3
Funds Sold	727				1,393				846				757				717
Other	352				364				341				300				271
Total Interest Income	143,018				139,424				135,585				132,146				131,613
Interest Expense
Deposits	13,172				10,931				9,459				7,581				6,980
Securities Sold Under Agreements to Repurchase	4,671				4,667				4,617				4,564				4,664
Funds Purchased	440				33				83				53				81
Short-Term Borrowings	88				28				13				16				—
Other Debt	674				838				917				976				1,118
Total Interest Expense	19,045				16,497				15,089				13,190				12,843
Net Interest Income	123,973				122,927				120,496				118,956				118,770
Provision for Credit Losses	2,000				3,800				3,500				4,125				4,250
Net Interest Income After Provision for Credit Losses	121,973				119,127				116,996				114,831				114,520
Noninterest Income
Trust and Asset Management	10,558				10,782				11,356				11,181				11,105
Mortgage Banking	2,148				1,965				2,179				2,145				2,593
Service Charges on Deposit Accounts	7,562				7,255				6,865				7,129				8,053
Fees, Exchange, and Other Service Charges	14,576				14,173				14,400				14,333				13,784
Investment Securities Gains (Losses), Net	(841		)		(729		)		(1,702		)		(666		)		(617		)
Annuity and Insurance	1,409				1,360				1,847				1,206				1,273
Bank-Owned Life Insurance	1,941				1,620				1,796				1,842				1,609
Other	4,755				5,056				4,557				6,865				4,055
Total Noninterest Income	42,108				41,482				41,298				44,035				41,855
Noninterest Expense
Salaries and Benefits	54,856				51,782				52,148				54,422				51,698
Net Occupancy	8,918				8,702				8,588				8,534				8,510
Net Equipment	6,364				6,116				5,845				5,527				5,454
Data Processing	5,151				4,241				4,563				3,891				4,310
Professional Fees	2,467				2,206				2,546				2,773				3,266
FDIC Insurance	1,336				2,057				2,182				2,157				2,253
Other	16,819				15,434				14,919				17,080				16,845
Total Noninterest Expense	95,911				90,538				90,791				94,384				92,336
Income Before Provision for Income Taxes	68,170				70,071				67,503				64,482				64,039
Provision for Income Taxes	14,259				13,138				12,785				10,442				21,086
Net Income	$	53,911			$	56,933			$	54,718			$	54,040			$	42,953

Basic Earnings Per Share	$	1.30			$	1.37			$	1.31			$	1.29			$	1.02
Diluted Earnings Per Share	$	1.30			$	1.36			$	1.30			$	1.28			$	1.01

Balance Sheet Totals
Loans and Leases	$	10,448,774			$	10,231,062			$	10,053,323			$	9,916,628			$	9,796,947
Total Assets	17,143,974				16,991,734				17,124,162				17,136,030				17,089,052
Total Deposits	15,027,242				14,843,335				14,943,358				14,957,133				14,883,968
Total Shareholders' Equity	1,268,200				1,253,327				1,247,717				1,241,193				1,231,868

Performance Ratios
Return on Average Assets	1.26			%	1.33			%	1.30			%	1.29			%	1.00			%
Return on Average Shareholders' Equity	17.05				18.06				17.68				17.74				13.85
Efficiency Ratio ¹	57.75				55.07				56.12				57.91				57.49
Net Interest Margin ²	3.10				3.07				3.04				3.00				2.98

¹ Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
² Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
Note: Certain prior period information has been reclassified to conform to current presentation.



Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends													Table 15
	Eleven Months Ended				Year Ended
($ in millions; jobs in thousands)	November 30, 2018				December 31, 2017						December 31, 2016
Hawaii Economic Trends
State General Fund Revenues¹	$	6,362.7	7.3	%	$	6,485.0			4.3	%	$	6,215.4		3.6	%
General Excise and Use Tax Revenue ¹	$	3,146.1	2.5	%	$	3,349.8			4.5	%	$	3,205.7		2.0	%
Jobs ²	668.8				668.2						669.4

									December 31,
(spot rates)									2018		2017			2016
Unemployment ³
Statewide, seasonally adjusted									2.5	%	2.1		%	2.9	%

Oahu									2.2		1.7			2.4
Island of Hawaii									2.9		2.0			3.1
Maui									2.3		1.8			2.7
Kauai									2.3		1.7			2.8

					December 31,
(percentage change, except months of inventory)					2018				2017		2016			2015
Housing Trends (Single Family Oahu) ⁴
Median Home Price					4.6			%	2.7	%	5.0		%	3.7	%
Home Sales Volume (units)					(7.7		)	%	6.3	%	6.5		%	5.2	%
Months of Inventory					2.8				2.1		2.5			2.6

					Monthly Visitor Arrivals,						Percentage Change
(in thousands)					Not Seasonally Adjusted						from Previous Year
Tourism⁵

November 30, 2018									782.0					4.3
October 31, 2018									770.4					4.4
September 30, 2018									724.9					3.5
August 31, 2018									845.1					3.2
July 31, 2018									939.4					5.3
June 30, 2018									897.1					7.3
May 31, 2018									804.1					7.0
April 30, 2018									803.0					6.6
March 31, 2018									903.6					12.5
February 28, 2018									778.6					10.3
January 31, 2018									796.5					5.4
December 31, 2017									880.4					6.3
November 30, 2017									749.5					7.5
October 31, 2017									737.6					2.9
September 30, 2017									700.5					4.9
August 31, 2017									818.6					4.8
July 31, 2017									891.9					6.8
June 30, 2017									835.9					4.5
May 31, 2017									751.2					4.5
April 30, 2017									753.0					7.5
March 31, 2017									802.8					2.1
February 28, 2017									706.1					2.5
January 31, 2017									756.0					4.9

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