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Bank of Hawaii Corporation 2003 Financial Results

HONOLULU--(BUSINESS WIRE)--Jan. 26, 2004--Bank of Hawaii Corporation (NYSE:BOH)

  • 2003 Diluted Earnings Per Share Increase to $2.21, Up 30% From 2002
  • 2003 Net Income $135.2 Million, Up 12% From 2002
  • Board of Directors Declares Dividend of $0.30 Per Share

Bank of Hawaii Corporation (NYSE:BOH) today reported diluted earnings per share for 2003 of $2.21, up $0.51 or 30.0 percent from diluted earnings per share of $1.70 in 2002. Net income for the year was $135.2 million, up $14.0 million or 11.6 percent from $121.2 million in the previous year. The return on average assets in 2003 was 1.44 percent, up from 1.22 percent in 2002. The return on average equity for the year was 15.02 percent, up from 10.24 percent in 2002.

"Our positive financial results for 2003 reflect the hard work and focus of our employees, and I'm proud of their accomplishments," said Michael E. O'Neill, Chairman and CEO. "Last year marked the final phase of our ambitious three-year strategic plan which began in 2001, and I'm pleased to report that we have exceeded all of our key goals. Entering 2004, Hawaii's economy continues its strong pace, and we believe our company is ready to build on its successes. We look forward to continuing the momentum as we prepare to execute our next three-year plan that will guide us through 2006."

Diluted earnings per share for the fourth quarter of 2003 were $0.66, up $0.22 or 50.0 percent from $0.44 per diluted share for the same period last year. Net income in the fourth quarter was $38.7 million, up 33.8 percent from net income of $28.9 million in the fourth quarter last year. The return on average assets for the fourth quarter of 2003 was 1.66 percent, up from 1.53 percent in the previous quarter and up from 1.20 percent in the fourth quarter of 2002. The return on average equity was 18.59 percent during the quarter, up from 16.69 percent in the third quarter of 2003 and up significantly from 10.72 percent in the same quarter last year.

Financial Highlights

Net interest income for the fourth quarter of 2003 was $93.4 million, up $2.3 million from net interest income of $91.1 million in the third quarter of 2003 and up $3.2 million from $90.2 million in the same quarter last year. The increase in net interest income from the previous quarter was largely due to higher yields on investment securities. The increase in net interest income from the fourth quarter of 2002 was primarily due to lower interest rates on deposits and a decline in short-term borrowings. An analysis of the change in net interest income is included in Table 6.

The net interest margin was 4.35 percent for the fourth quarter of 2003, a 20 basis point increase from 4.15 percent in the previous quarter and a 30 basis point increase from 4.05 percent in the fourth quarter of 2002. The net interest margin for the full year of 2003 was 4.23 percent, a 24 basis point increase from 3.99 percent in 2002.

The Company did not recognize a provision for loan and lease losses during the fourth quarter of 2003 and has not recorded a provision for the last six quarters. The allowance for loan and lease losses was reduced $3.6 million from September 30, 2003, which equaled the amount of net charge-offs for the fourth quarter.

Non-interest income was $49.4 million for the quarter, a decrease of $4.4 million or 8.1 percent compared to non-interest income of $53.8 million in the third quarter of 2003. The decrease was primarily due to reduced gains on sales of mortgage loans and lower commercial loan prepayment penalties during the fourth quarter. Non-interest income was down $0.9 million or 1.8 percent from non-interest income of $50.4 million in the fourth quarter of 2002 largely due to a decline in gains on sales of mortgage loans.

Non-interest expense was $83.4 million in the fourth quarter of 2003, down $5.5 million or 6.2 percent from $88.9 million in the previous quarter and down $13.3 million or 13.8 percent from $96.7 million in the same quarter last year. Non-interest expense for the third quarter of 2003 and the fourth quarter of 2002 included $4.4 million and $7.1 million, respectively, in systems replacement costs. The fourth quarter of 2002 also included $0.4 million in net restructuring costs. Excluding these costs, non-interest expense was down $1.1 million compared to the third quarter of 2003. The decrease was primarily due to a gain on the sale of foreclosed property in the fourth quarter and the third quarter donation to the Bank of Hawaii Charitable Foundation, partially offset by increased salaries and benefits related to employee incentives. An analysis of salary and benefit expenses is included in Table 7. Excluding systems replacement and net restructuring costs, non-interest expense decreased $5.9 million or 6.6 percent from the same quarter last year largely due to cost savings associated with the systems replacement project.

The efficiency ratio for the full year of 2003 was 63.4 percent. Excluding systems replacement and net restructuring costs, the efficiency ratio for 2003 was 59.5 percent, a significant improvement compared to 62.1 percent in the previous year. The efficiency ratio for the fourth quarter of 2003 was 58.4 percent compared to 63.5 percent, excluding systems replacement and net restructuring costs, in the fourth quarter last year.

The Company's business segments are defined as Retail Banking, Commercial Banking, Investment Services Group, and Treasury and Other Corporate. Results are determined based on the Company's internal financial management reporting process and organizational structure. Previously reported results have been reclassified to conform to current methodologies. Business segment performance details are summarized in Tables 11a and 11b.

Asset Quality

Bank of Hawaii Corporation's strong credit quality continued to improve during the fourth quarter of 2003. Non-performing assets were $31.7 million at the end of the quarter, a decrease of $8.4 million, or 20.9 percent compared to non-performing assets of $40.1 million at the end of the previous quarter. Contributing to the improvement in non-performing assets was the fourth quarter 2003 sale of a $3.7 million foreclosed property. Non-performing assets declined $22.7 million, or 41.7 percent compared to $54.4 million at the end of the fourth quarter last year. At December 31, 2003 the ratio of non-performing assets to total loans and foreclosed real estate was 0.55 percent compared with 0.72 percent at September 30, 2003 and 1.01 percent at December 31, 2002.

Non-accrual loans were $27.3 million at December 31, 2003, a reduction of $4.1 million, or 13.1 percent, from $31.4 million at September 30, 2003 and down $17.7 million, or 39.3 percent, from $45.0 million at December 31, 2002. Non-accrual loans as a percentage of total loans were 0.47 percent at December 31, 2003, down from 0.56 percent at the end of the previous quarter and down from 0.84 percent at the end of the comparable quarter last year.

Net charge-offs during the fourth quarter of 2003 were $3.6 million, or 0.26 percent (annualized) of total average loans, down from $5.3 million, or 0.38 percent (annualized) of total average loans in the third quarter of 2003. Net charge-offs in the fourth quarter of 2003 were comprised of $6.9 million in charge-offs partially offset by recoveries of $3.3 million. Net charge-offs during the fourth quarter of 2002 were $11.6 million, or 0.88 percent (annualized) of total average loans. Net charge-offs for the full year of 2003 were $13.8 million, or 0.25 percent of total average loans, a decrease of 50.2 percent from net charge-offs of $27.7 million, or 0.51 percent of total average loans in 2002.

The allowance for loan and lease losses was $129.1 million at December 31, 2003. The ratio of the allowance for loan and lease losses to total loans was 2.24 percent at December 31, 2003 down from 2.38 percent at September 30, 2003 and down from 2.67 percent at December 31, 2002.

Concentrations of credit exposure to selected components of the portfolio are summarized in Table 8.

Other Financial Highlights

Total assets were $9.5 billion at December 31, 2003, up from total assets of $9.4 billion at September 30, 2003 and essentially flat compared with total assets of $9.5 billion at December 31, 2002. Total loans were $5.8 billion at December 31, 2003, up from total loans of $5.6 billion at September 30, 2003 and up from total loans of $5.4 billion at December 31, 2002. Total deposits at December 31, 2003 were $7.3 billion, up $231 million from September 30, 2003 and up $413 million from December 31, 2002. The increase in deposits was primarily due to continued growth in demand and savings deposits.

During the fourth quarter of 2003, Bank of Hawaii Corporation repurchased 1.6 million shares of common stock at a total cost of $64.2 million under the share repurchase program. The average cost per share was $40.27 during the quarter. From the beginning of the share repurchase program in July 2001 through December 31, 2003, the Company had repurchased a total of 29.8 million shares and returned a total of $855.0 million to the shareholders at an average cost of $28.68 per share. Through January 23, 2004, the Company repurchased an additional 0.3 million shares of common stock at a cost of $42.79 per share. Remaining buyback authority was $133.2 million at January 23, 2004.

The Company's capital and liquidity remain strong. At December 31, 2003 the Tier 1 leverage ratio was 8.43 percent compared to 8.52 percent at September 30, 2003 and 10.34 percent at December 31, 2002.

The Company's Board of Directors has declared a quarterly cash dividend of $0.30 per share on the Company's outstanding shares. The dividend will be payable on March 12, 2004 to shareholders of record at the close of business on March 1, 2004.

Economic Update

During the fourth quarter of 2003, Hawaii's economy continued to outperform the national average. Hawaii's 4.0 percent fourth quarter unemployment rate, employment growth rate of 4.5 percent (persons), and job growth rate of 2.0 percent (payrolls) ranked among the top five states nationwide. Travel volumes continued to grow at 3-4 percent overall during the fourth quarter, recovering from SARS effects in the second quarter of 2003. Tourism is expected to reach record volumes for domestic travelers during 2003, and an all-time high for overall visitor days (arrivals times stay length) for the year. International travel prospects were enhanced during the fourth quarter by the strengthening yen against the US dollar. Home sales reached record high volumes with record high prices during the quarter. Construction spending, up 40 percent over the last four years, headed into the fourth quarter of 2003 running ahead of prior year volumes 4-5 percent. For more economic information, visit the Company's web site http://www.boh.com/econ/.

Business and Earnings Outlook -- Plan for 2004 to 2006

In 2001, the Company announced a three-year plan designed to refocus on maximizing shareholder value over time, which continues to be our governing objective. That plan was successfully completed in 2003. The new three-year plan for 2004-2006 continues to build on the winning strategy of that plan. There are five key elements of the new plan: 1) accelerate revenue growth in island markets; 2) better integrate our business segments; 3) develop our management teams; 4) improve efficiency; and 5) maintain a discipline of dependable risk and capital management. Bank of Hawaii Corporation currently estimates that its net income for 2004 should be approximately $157 million. Based on current conditions, the Company does not expect to record a provision for loan and lease losses in 2004. However, the actual amount of the provision for loan and lease losses depends on determinations of credit risk that are made near the end of each quarter. Earnings per share and return on equity projections continue to be dependent upon the terms and timing of share repurchases. A summary of the Company's financial targets for 2004-2006 are included in Table 13.

Conference Call Information

The Company will review its 2003 financial results and discuss the new 2004-2006 plan today at 8:00 a.m. Hawaii Time (1:00 p.m. Eastern Time). The presentation will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation's web site, www.boh.com. The conference call number is 800-299-7635 in the United States or 617-786-2901 for international callers. No confirmation code is required to access the call. A replay will be available for one week beginning at 10:00 a.m. Hawaii Time (3:00 p.m. Eastern Time) on Monday, January 26, 2004 by calling 888-286-8010 in the United States or 617-801-6888 for international callers and entering the number 54443887 when prompted. A replay of the presentation will also be available via the Investor Relations link of the Company's web site.

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

This news release contains forward-looking statements concerning, among other things, the economic environment in our service area, the expected level of loan loss provisioning, anticipated savings of our systems replacement project, the effect of our new three-year plan, and anticipated dividends, revenues and expenses during 2004 and beyond. We believe the assumptions underlying our forward-looking statements are reasonable. However, any of the assumptions could prove to be inaccurate and actual results may differ materially from those projected for a variety of reasons, including, but not limited to: 1) unanticipated changes in business and economic conditions, the competitive environment, fiscal and monetary policies, or legislation in Hawaii and the other markets we serve; 2) changes in our credit quality or risk profile which may increase or decrease the required level of allowance for loan and lease losses; 3) changes in market interest rates that may affect our credit markets and ability to maintain our net interest margin; 4) changes to the amount and timing of our proposed equity repurchases; 5) inability to achieve expected benefits of our business process changes due to adverse changes in implementation processes or costs, operational savings, or timing; 6) real or threatened acts of war or terrorist activity affecting business conditions; and 7) adverse weather and other natural conditions impacting our and our customers' operations. We do not undertake any obligation to update forward-looking statements to reflect later events or circumstances.

Bank of Hawaii Corporation and Subsidiaries
Highlights (Unaudited)                                         Table 1
----------------------------------------------------------------------
(dollars in thousands except per
 share amounts)
                             Three Months Ended       Year Ended
Earnings Highlights and          December 31,         December 31,
 Performance Ratios            2003    2002 (1)     2003      2002 (1)
---------------------------- -----------------------------------------
Net Income                   $38,673   $28,908    $135,195   $121,180
Basic Earnings Per Share        0.70      0.45        2.32       1.75
Diluted Earnings Per Share      0.66      0.44        2.21       1.70
Cash Dividends                16,770    12,193      50,589     50,635
Return on Average Assets        1.66%     1.20%       1.44%      1.22%
Return on Average Equity       18.59%    10.72%      15.02%     10.24%
Net Interest Margin             4.35%     4.05%       4.23%      3.99%
Efficiency Ratio               58.41%    68.80%      63.38%     64.94%
Efficiency Ratio excluding
 ITSRP and Restructuring
 Costs                         58.41%    63.51%      59.51%     62.13%
----------------------------------------------------------------------

Statement of Condition Highlights and                 December 31,
 Performance Ratios                                 2003       2002
-------------------------------------           ----------------------

Total Assets                                    $9,461,647 $9,516,418
Net Loans                                        5,628,095  5,216,151
Total Deposits                                   7,332,779  6,920,161
Total Shareholders' Equity                         793,132  1,015,759

Book Value Per Common Share                         $14.44     $16.12
Allowance / Loans and Leases
 Outstanding                                          2.24%      2.67%
Average Equity / Average
 Assets                                               9.60%     11.88%
Employees (FTE)                                      2,702      2,891
Branches and offices                                    89         93

Market Price Per Share of Common
 Stock for the Quarter Ended:
                                      Closing       $42.20     $30.39
                                      High          $42.99     $31.05
                                      Low           $33.69     $25.40

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


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)                  Table 2
----------------------------------------------------------------------
                             Three Months Ended       Year Ended
(dollars in thousands           December 31,          December 31,
 except per share amounts)    2003     2002 (1)     2003     2002 (1)
----------------------------------------------------------------------
Interest Income
   Interest and Fees on
    Loans and Leases         $80,351    $85,945   $334,793   $366,366
   Income on Investment
    Securities - Held to
    Maturity                   7,183      3,122     18,956     16,774
   Income on Investment
    Securities - Available
    for Sale                  19,032     24,088     77,793    104,261
   Deposits                    1,169      3,578      4,816     20,020
   Funds Sold                     85        834      1,919      3,503
   Other                       1,007      1,312      4,244      5,614
----------------------------------------------------------------------
Total Interest Income        108,827    118,879    442,521    516,538
Interest Expense
   Deposits                    9,433     17,657     47,473     84,348
   Security Repurchase
    Agreements                 1,359      4,585      7,939     30,173
   Funds Purchased               249        255        944      1,030
   Short-Term Borrowings          17        217         92      1,489
   Long-Term Debt              4,417      5,947     20,131     29,267
----------------------------------------------------------------------
Total Interest Expense        15,475     28,661     76,579    146,307
----------------------------------------------------------------------
Net Interest Income           93,352     90,218    365,942    370,231
Provision for Loan and
 Lease Losses                      -          -          -     11,616
----------------------------------------------------------------------
Net Interest Income After
 Provision for Loan and
  Lease Losses                93,352     90,218    365,942    358,615
Non-Interest Income
   Trust and Asset
    Management                12,759     13,085     50,996     55,733
   Mortgage Banking            3,324      4,398     15,556     18,866
   Service Charges on
    Deposit Accounts           9,442      8,326     35,938     32,617
   Fees, Exchange, and
    Other Service Charges     13,725     12,963     56,221     51,594
   Investment Securities
    Gains (Losses)               (20)       612      1,789        615
   Insurance                   3,597      3,099     13,680     10,938
   Other                       6,610      7,872     24,540     27,972
----------------------------------------------------------------------
Total Non-Interest Income     49,437     50,355    198,720    198,335
Non-Interest Expense
   Salaries and Benefits      46,409     44,734    186,280    186,563
   Net Occupancy Expense       9,933     10,638     38,980     39,149
   Net Equipment Expense       7,395     11,077     33,652     41,253
   Restructuring and Other
    Related Costs                  -        385          -      2,364
   Information Technology
    Systems Replacement
    Project                        -      7,052     21,871     13,628
   Other                      19,667     22,827     77,092     86,292
----------------------------------------------------------------------
Total Non-Interest Expense    83,404     96,713    357,875    369,249
----------------------------------------------------------------------
Income Before Income Taxes    59,385     43,860    206,787    187,701
Provision for Income Taxes    20,712     14,952     71,592     66,521
----------------------------------------------------------------------
Net Income                   $38,673    $28,908   $135,195   $121,180
======================================================================
Basic Earnings Per Share       $0.70      $0.45      $2.32      $1.75
Diluted Earnings Per Share     $0.66      $0.44      $2.21      $1.70
Dividends Declared Per
 Share                         $0.30      $0.00      $0.87      $0.73
Basic Weighted Average
 Shares                   55,374,874 64,154,477 58,338,566 69,385,745
Diluted Weighted Average
 Shares                   58,570,941 66,378,208 61,085,567 71,447,333
======================================================================

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


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition (Unaudited)               Table 3
----------------------------------------------------------------------
                                            December 31, December 31,
(dollars in thousands)                          2003         2002
----------------------------------------------------------------------
Assets
Interest-Bearing Deposits                       $154,735     $549,978
Investment Securities - Held to Maturity
   (Market Value of $720,699 and $236,016)       727,233      229,720
Investment Securities - Available for Sale     1,991,116    2,287,201
Funds Sold                                             -      195,000
Loans Held for Sale                                9,211       40,118
Loans                                          5,757,175    5,359,004
   Allowance for Loan and Lease Losses          (129,080)    (142,853)
----------------------------------------------------------------------
     Net Loans                                 5,628,095    5,216,151
----------------------------------------------------------------------
Total Earning Assets                           8,510,390    8,518,168
Cash and Non-Interest Bearing Deposits           363,495      374,352
Premises and Equipment                           160,005      176,969
Customers' Acceptance Liability                    1,707        2,680
Accrued Interest Receivable                       32,672       36,722
Foreclosed Real Estate                             4,377        9,434
Mortgage Servicing Rights                         22,178       28,820
Goodwill                                          36,216       36,216
Other Assets                                     330,607      333,057
----------------------------------------------------------------------
Total Assets                                  $9,461,647   $9,516,418
======================================================================
Liabilities
Deposits
   Non-Interest Bearing Demand                $1,933,928   $1,719,633
   Interest Bearing Demand                     1,356,330    1,171,832
   Savings                                     2,833,379    2,535,219
   Time                                        1,209,142    1,493,477
----------------------------------------------------------------------
Total Deposits                                 7,332,779    6,920,161
Securities Sold Under Agreements to
 Repurchase                                      472,757      735,621
Funds Purchased                                  109,090       64,467
Short-Term Borrowings                             12,690       33,420
Current Maturities of Long-Term Debt              96,505      114,781
Banker's Acceptances Outstanding                   1,707        2,680
Retirement Benefits Payable                       61,841       61,385
Accrued Interest Payable                           7,483       13,731
Taxes Payable                                    207,101      196,813
Other Liabilities                                138,999       82,596
Long-Term Debt                                   227,563      275,004
----------------------------------------------------------------------
Total Liabilities                              8,668,515    8,500,659
Shareholders' Equity
Common Stock ($.01 par value); authorized
 500,000,000 shares;
   issued / outstanding: December 2003 -
    81,647,729 / 54,928,480,
   December 2002 - 81,294,730 / 63,015,442           807          806
Capital Surplus                                  391,701      372,192
Accumulated Other Comprehensive Income (Loss)     (5,711)      11,659
Retained Earnings                              1,199,077    1,115,910
Deferred Stock Grants                             (8,309)      (1,424)
Treasury Stock, at Cost (Shares: December
 2003 - 26,719,249, December 2002 -
 18,279,288)                                    (784,433)    (483,384)
----------------------------------------------------------------------
Total Shareholders' Equity                       793,132    1,015,759
----------------------------------------------------------------------
Total Liabilities and Shareholders' Equity    $9,461,647   $9,516,418
======================================================================


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity (Unaudited)    Table 4
----------------------------------------------------------------------
                                                              Accum.
                                                              Other
                                                              Compre-
                                                              hensive
                                              Common Capital  Income
(dollars in thousands)                 Total  Stock  Surplus  (Loss)
----------------------------------------------------------------------

Balance at December 31, 2002        $1,015,759  $806 $372,192 $11,659
Comprehensive Income:
  Net Income                           135,195     -        -       -
     Other Comprehensive Income, Net
      of Tax:
         Change in Unrealized Gains
          and Losses on Investment
          Securities                   (16,434)    -        - (16,434)
         Pension Liability
          Adjustment                      (936)    -        -    (936)
     Total Comprehensive Income

Common Stock Issued:
   38,928 Retirement Savings Plan        1,370     -      526       -
1,213,303 Stock Option Plan             28,712     -    5,380       -
   94,511 Dividend Reinvestment Plan     3,292     -    1,237       -
    8,482 Directors' Restricted
           Shares and Deferred
           Compensation Plan                48     1      286       -
  328,200 Employees' Restricted
           Shares                        6,693     -   12,080       -
Treasury Stock Purchased  (9,762,079
 shares)                              (329,978)    -        -       -
Cash Dividends Paid                    (50,589)    -        -       -
----------------------------------------------------------------------
Balance at December 31, 2003          $793,132  $807 $391,701 $(5,711)
======================================================================

Balance at December 31, 2001        $1,247,012  $806 $367,672 $22,761
Comprehensive Income:
  Net Income                           121,180     -        -       -
     Other Comprehensive Income, Net
      of Tax:
         Change in Unrealized Gains
          and Losses on Investment
          Securities                     4,237     -        -   4,237
         Foreign Currency
          Translation Adjustment          (582)    -        -    (582)
         Pension Liability
          Adjustment                   (14,757)    -        - (14,757)
     Total Comprehensive Income

Common Stock Issued:
   43,449 Profit Sharing Plan            1,240     -      288       -
1,581,876 Stock Option Plan             32,279     -    5,352       -
  101,796 Dividend Reinvestment Plan     2,893     -      656       -
    4,792 Directors' Restricted
           Shares and Deferred
           Compensation Plan                20     -      141       -
  (81,600)Employees' Restricted
           Shares                        5,089     -   (1,917)      -
Treasury Stock Purchased
 (11,838,800 shares)                  (332,217)    -        -       -
Cash Dividends Paid                    (50,635)    -        -       -
----------------------------------------------------------------------
Balance at December 31, 2002        $1,015,759  $806 $372,192 $11,659
======================================================================

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

Balance at December 31, 2002   $1,115,910 $(1,424) $(483,384)
Comprehensive Income:
  Net Income                      135,195       -          - $135,195
     Other Comprehensive
      Income, Net of Tax:
         Change in Unrealized
          Gains and Losses on
          Investment Securities         -       -          -  (16,434)
         Pension Liability
          Adjustment                    -       -          -     (936)
                                                             ---------
     Total Comprehensive Income                              $117,825
                                                             =========

Common Stock Issued:
   38,928 Retirement Savings
           Plan                         -       -        844
1,213,303 Stock Option Plan        (1,439) (1,498)    26,269
   94,511 Dividend Reinvestment
           Plan                         -       -      2,055
    8,482 Directors' Restricted
           Shares and Deferred
           Compensation Plan            -       -       (239)
  328,200 Employees' Restricted
           Shares                       -  (5,387)         -
Treasury Stock Purchased
 (9,762,079 shares)                     -       -   (329,978)
Cash Dividends Paid               (50,589)      -          -
-------------------------------------------------------------
Balance at December 31, 2003   $1,199,077 $(8,309) $(784,433)
=============================================================

Balance at December 31, 2001   $1,055,424 $(7,637) $(192,014)
Comprehensive Income:
  Net Income                      121,180       -          - $121,180
     Other Comprehensive
      Income, Net of Tax:
         Change in Unrealized
          Gains and Losses on
          Investment Securities         -       -          -    4,237
         Foreign Currency
          Translation
          Adjustment                    -       -          -     (582)
         Pension Liability
          Adjustment                    -       -          -  (14,757)
                                                             ---------
     Total Comprehensive Income                              $110,078
                                                             =========

Common Stock Issued:
   43,449 Profit Sharing Plan           -       -        952
1,581,876 Stock Option Plan       (10,057)   (793)    37,777
  101,796 Dividend Reinvestment
           Plan                        (2)      -      2,239
    4,792 Directors' Restricted
           Shares and Deferred
           Compensation Plan            -       -       (121)
  (81,600)Employees' Restricted
           Shares                       -   7,006          -
Treasury Stock Purchased
 (11,838,800 shares)                    -       -   (332,217)
Cash Dividends Paid               (50,635)      -          -
-------------------------------------------------------------
Balance at December 31, 2002   $1,115,910 $(1,424) $(483,384)
=============================================================


Bank of Hawaii Corporation and Subsidiaries
Consolidated Average Balances and Interest Rates - Taxable
 Equivalent Basis (Unaudited)                                 Table 5a
----------------------------------------------------------------------
                        Three Months Ended      Three Months Ended
                         December 31, 2003      September 30, 2003
                       Average Income/ Yield/  Average Income/ Yield/
(dollars in millions)  Balance Expense  Rate   Balance Expense  Rate
----------------------------------------------------------------------
Earning Assets
Interest Bearing
 Deposits                $218.6   $1.2   2.12%   $224.7   $1.2   2.08%
Funds Sold                 34.3    0.1   0.99     102.4    0.3   0.97
Investment Securities
 Held to Maturity         742.1    7.2   3.89     675.1    6.4   3.82
 Available for Sale     1,898.6   19.0   4.01   2,090.6   16.5   3.15
Loans Held for Sale        13.9    0.2   6.21      52.2    0.7   5.45
Loans and Lease
 Financing
 Commercial and
  Industrial              858.2   10.6   4.90     862.8   10.8   4.95
 Construction              99.2    1.1   4.30      87.8    0.9   4.26
 Commercial Mortgage      627.4    8.9   5.62     670.6    9.4   5.56
 Residential Mortgage   2,336.3   34.5   5.90   2,298.8   36.2   6.30
 Installment              598.1   13.4   8.89     558.6   12.8   9.09
 Home Equity              453.0    5.6   4.89     448.1    5.6   4.99
 Purchased Home Equity    104.7    0.6   2.24     132.6    0.7   2.20
 Lease Financing          494.0    5.5   4.44     487.2    5.6   4.52
----------------------------------------------------------------------
Total Loans and Lease
 Financing              5,570.9   80.2   5.73   5,546.5   82.0   5.89
Other                      76.8    1.0   5.20      76.1    1.0   5.38
----------------------------------------------------------------------
Total Earning Assets    8,555.2  108.9   5.07   8,767.6  108.1   4.91
Cash and Non-Interest
 Bearing Deposits         323.5                   333.2
Other Assets              379.1                   399.2
                       --------                --------
Total Assets           $9,257.8                $9,500.0
                       ========                ========

Interest Bearing
 Liabilities
Interest Bearing
 Deposits
 Demand                $1,293.8   $0.5   0.16% $1,245.8   $0.5   0.15%
 Savings                2,786.6    3.2   0.46   2,754.6    3.4   0.49
 Time                   1,227.9    5.7   1.83   1,285.7    6.4   1.97
----------------------------------------------------------------------
Total Interest Bearing
 Deposits               5,308.3    9.4   0.71   5,286.1   10.3   0.77
Short-Term Borrowings     608.0    1.7   1.06     827.8    2.3   1.08
Long-Term Debt            324.2    4.4   5.41     325.7    4.4   5.40
----------------------------------------------------------------------
Total Interest Bearing
 Liabilities            6,240.5   15.5   0.98   6,439.6   17.0   1.04
----------------------------------------------------------------------
Net Interest Income              $93.4                   $91.1
                                ======                  ======
 Interest Rate Spread                    4.09%                   3.87%
 Net Interest Margin                     4.35%                   4.15%
Non-Interest Bearing
 Demand Deposits        1,836.4                 1,844.4
Other Liabilities         355.7                   344.1
Shareholders' Equity      825.2                   871.9
                       --------                --------
Total Liabilities and
 Shareholders' Equity  $9,257.8                $9,500.0
                       ========                ========

                                               Three Months Ended
                                             December 31, 2002 (1)
                                         Average    Income/   Yield/
(dollars in millions)                    Balance    Expense    Rate
---------------------------------------------------------------------
Earning Assets
Interest Bearing Deposits                  $796.6      $3.6     1.78%
Funds Sold                                  234.5       0.8     1.42
Investment Securities
 Held to Maturity                           253.8       3.2     4.98
 Available for Sale                       2,273.3      24.1     4.24
Loans Held for Sale                          38.9       0.6     5.88
Loans and Lease Financing
 Commercial and Industrial                  881.7      11.3     5.07
 Construction                               131.5       1.8     5.30
 Commercial Mortgage                        610.5       9.9     6.40
 Residential Mortgage                     2,212.7      38.5     6.97
 Installment                                443.3      11.7    10.53
 Home Equity                                422.1       5.8     5.50
 Purchased Home Equity                       10.1         -        -
 Lease Financing                            498.5       6.3     5.03
---------------------------------------------------------------------
Total Loans and Lease Financing           5,210.4      85.3     6.52
Other                                        78.7       1.3     6.62
---------------------------------------------------------------------
Total Earning Assets                      8,886.2     118.9     5.33
Cash and Non-Interest Bearing Deposits      305.2
Other Assets                                363.4
                                         --------
Total Assets                             $9,554.8
                                         ========

Interest Bearing Liabilities
Interest Bearing Deposits
 Demand                                  $1,105.1      $1.1     0.39%
 Savings                                  2,468.2       6.4     1.03
 Time                                     1,538.2      10.2     2.63
---------------------------------------------------------------------
Total Interest Bearing Deposits           5,111.5      17.7     1.37
Short-Term Borrowings                     1,053.5       5.1     1.90
Long-Term Debt                              389.9       5.9     6.05
---------------------------------------------------------------------
Total Interest Bearing Liabilities        6,554.9      28.7     1.73
---------------------------------------------------------------------
Net Interest Income                                   $90.2
                                                     ======
 Interest Rate Spread                                           3.60%
 Net Interest Margin                                            4.05%
Non-Interest Bearing Demand Deposits      1,601.0
Other Liabilities                           329.3
Shareholders' Equity                      1,069.6
                                         --------
Total Liabilities and Shareholders'
 Equity                                  $9,554.8
                                         ========

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


Bank of Hawaii Corporation and Subsidiaries
Consolidated Average Balances and Interest
 Rates - Taxable Equivalent Basis (Unaudited)                 Table 5b
----------------------------------------------------------------------
                             Year Ended              Year Ended
                          December 31, 2003    December 31, 2002 (1)
                       Average Income/ Yield/  Average Income/ Yield/
(dollars in millions)  Balance Expense  Rate   Balance Expense  Rate
----------------------------------------------------------------------
Earning Assets
Interest Bearing
 Deposits                $227.3   $4.8   2.12% $1,100.0  $20.0   1.82%
Funds Sold                162.9    1.9   1.18     213.8    3.5   1.64
Investment Securities
 Held to Maturity         488.0   19.1   3.92     311.7   17.0   5.47
 Available for Sale     2,142.4   77.8   3.63   2,028.9  104.3   5.14
Loans Held for Sale        39.5    2.2   5.48     120.2    8.0   6.65
Loans and Lease
 Financing
 Commercial and
  Industrial              860.3   41.9   4.87   1,024.1   52.0   5.08
 Construction              96.3    4.4   4.56     151.5    8.3   5.45
 Commercial Mortgage      644.8   37.4   5.81     598.7   40.0   6.68
 Residential Mortgage   2,295.0  145.6   6.34   2,334.4  164.3   7.04
 Installment              548.8   52.6   9.59     408.3   45.1  11.05
 Home Equity              444.6   22.5   5.05     393.4   22.9   5.81
 Purchased Home Equity    144.7    5.9   4.10       2.5      -      -
 Lease Financing          489.9   22.3   4.55     498.4   25.8   5.17
----------------------------------------------------------------------
Total Loans and Lease
 Financing              5,524.4  332.6   6.02   5,411.3  358.4   6.62
Other                      75.7    4.3   5.61      91.5    5.6   6.14
----------------------------------------------------------------------
Total Earning Assets    8,660.2  442.7   5.11   9,277.4  516.8   5.57
Cash and Non-Interest
 Bearing Deposits         328.4                   313.2
Other Assets              388.9                   370.6
                       --------                --------
Total Assets           $9,377.5                $9,961.2
                       ========                ========

Interest Bearing
 Liabilities
Interest Bearing
 Deposits
 Demand                $1,215.7   $2.5   0.20% $1,014.7   $4.3   0.42%
 Savings                2,723.9   15.7   0.58   2,263.4   29.4   1.30
 Time                   1,352.3   29.3   2.17   1,765.5   50.6   2.87
----------------------------------------------------------------------
Total Interest Bearing
 Deposits               5,291.9   47.5   0.90   5,043.6   84.3   1.67
Short-Term Borrowings     724.2    9.0   1.24   1,390.2   32.7   2.35
Long-Term Debt            352.7   20.1   5.71     471.3   29.3   6.21
----------------------------------------------------------------------
Total Interest Bearing
 Liabilities            6,368.8   76.6   1.20   6,905.1  146.3   2.12
----------------------------------------------------------------------
Net Interest Income             $366.1                  $370.5
                                ======                  ======
 Interest Rate Spread                    3.91%                   3.45%
 Net Interest Margin                     4.23%                   3.99%
Non-Interest Bearing
 Demand Deposits        1,753.9                 1,556.3
Other Liabilities         354.7                   316.3
Shareholders' Equity      900.1                 1,183.5
                       --------                --------
Total Liabilities and
 Shareholders' Equity  $9,377.5                $9,961.2
                       ========                ========

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


Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income -
 Tax Equivalent Basis (Unaudited)                             Table 6
---------------------------------------------------------------------
                                         Year Ended December 31, 2003
                                              Compared to 2002 (2)
(dollars in millions)                     Volume(1)  Rate(1)   Total
---------------------------------------------------------------------
Change in Interest Income:
Interest Bearing Deposits                    $(18.0)    $2.8  $(15.2)
Funds Sold                                     (0.7)    (0.9)   (1.6)
Investment Securities
   Held to Maturity                             7.8     (5.7)    2.1
   Available for Sale                           5.6    (32.1)  (26.5)
Loans Held for Sale                            (4.6)    (1.2)   (5.8)
Loans and Lease Financing
   Commercial and Industrial                   (8.0)    (2.1)  (10.1)
   Construction                                (2.7)    (1.2)   (3.9)
   Commercial Mortgage                          2.8     (5.4)   (2.6)
   Residential Mortgage                        (2.7)   (16.0)  (18.7)
   Installment                                 14.0     (6.5)    7.5
   Home Equity                                  2.8     (3.2)   (0.4)
   Purchased Home Equity                        0.1      5.8     5.9
   Lease Financing                             (0.4)    (3.1)   (3.5)
---------------------------------------------------------------------
Total Loans and Lease Financing                 5.9    (31.7)  (25.8)
Other                                          (0.9)    (0.4)   (1.3)
---------------------------------------------------------------------

Total Change in Interest Income                (4.9)   (69.2)  (74.1)
---------------------------------------------------------------------

Change in Interest Expense:
Interest Bearing Deposits
   Demand                                       0.7     (2.5)   (1.8)
   Savings                                      5.1    (18.8)  (13.7)
   Time                                       (10.4)   (10.9)  (21.3)
---------------------------------------------------------------------
Total Interest Bearing Deposits                (4.6)   (32.2)  (36.8)
Short-Term Borrowings                         (11.9)   (11.8)  (23.7)
Long-Term Debt                                 (6.9)    (2.3)   (9.2)
---------------------------------------------------------------------

Total Change in Interest Expense              (23.4)   (46.3)  (69.7)
---------------------------------------------------------------------

Change in Net Interest Income                 $18.5   $(22.9)  $(4.4)
=====================================================================

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

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


Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits (Unaudited)                             Table 7
---------------------------------------------------------------------
                              Three Months Ended      Year Ended
                                  December 31,        December 31,
(dollars in thousands)          2003      2002      2003      2002
---------------------------------------------------------------------
Salaries                        $27,972  $30,300  $114,376  $123,601
Incentive Compensation            5,130    3,333    15,747    12,871
Stock Based Compensation          5,128    1,330     9,215     4,553
Commission Expense                1,833    2,809    10,797     9,113
Retirement and Other Benefits       882    2,115    14,353    14,134
Payroll Taxes                     2,009    2,159    10,454    10,894
Medical, Dental, and Life
 Insurance                        1,981    1,998     7,371     8,008
Separation Expense                1,474      690     3,967     3,389
---------------------------------------------------------------------
Total Salaries and Benefits     $46,409  $44,734  $186,280  $186,563
=====================================================================


Bank of Hawaii Corporation and Subsidiaries
Loan Portfolio Balances  (Unaudited)                           Table 8
----------------------------------------------------------------------
                      December  September   June     March   December
                         31,       30,       30,       31,      31,
(dollars in  millions)  2003      2003      2003      2003     2002
----------------------------------------------------------------------
Domestic
 Commercial
    Commercial and
     Industrial         $816.2     $843.9   $808.5    $824.9   $875.0
    Commercial
     Mortgage            639.4      629.2    689.7     691.7    591.1
    Construction         101.3       92.3     83.6      86.7    127.5
    Lease Financing      435.8      426.9    416.9     430.4    427.3
----------------------------------------------------------------------
 Total Commercial      1,992.7    1,992.3  1,998.7   2,033.7  2,020.9
 Consumer
    Residential
     Mortgage          2,320.5    2,329.4  2,222.0   2,305.3  2,131.4
    Home Equity          467.0      446.0    450.3     439.1    428.2
    Purchased Home
     Equity              212.5      109.8    145.6     170.9    185.8
    Other Consumer       658.8      582.9    554.8     518.5    493.3
    Lease Financing       35.3       35.3     34.0      33.8     34.5
----------------------------------------------------------------------
 Total Consumer        3,694.1    3,503.4  3,406.7   3,467.6  3,273.2
----------------------------------------------------------------------
Total Domestic         5,686.8    5,495.7  5,405.4   5,501.3  5,294.1
----------------------------------------------------------------------
Foreign                   70.4       74.7     66.5      64.1     64.9
----------------------------------------------------------------------
Total Loans           $5,757.2   $5,570.4 $5,471.9  $5,565.4 $5,359.0
======================================================================

Selected Concentrations of Credit Exposure (Unaudited)
----------------------------------------------------------------------
                                                    Sep. 30, Dec. 31,
                          December 31, 2003            2003     2002
                                   Unused    Total    Total    Total
(dollars in        Outstanding Commitments Exposure Exposure Exposure
 millions)
----------------------------------------------------------------------
Air Transportation
 Regional Passenger
  Carriers               $44.0      $12.5    $56.5     $57.6    $57.3
 United States Based
  Passenger Carriers      40.0          -     40.0      39.9     39.6
 International Based
  Passenger Carriers      31.5          -     31.5      31.7     32.1
 Cargo Carriers           14.4          -     14.4      14.4     15.0
----------------------------------------------------------------------
Total Air
 Transportation         $129.9      $12.5   $142.4    $143.6   $144.0
======================================================================

Guam
 Hotel                   $17.7         $-    $17.7     $17.8    $44.4
 Other Commercial        135.4       48.8    184.2     183.1    166.0
 Consumer                282.5        6.3    288.8     277.5    257.4
----------------------------------------------------------------------
Total Guam              $435.6      $55.1   $490.7    $478.4   $467.8
======================================================================

Syndicated Exposure     $244.5     $623.4   $867.9    $873.5 $1,002.1
======================================================================

Exposure includes loans, leveraged leases and operating leases.


Bank of Hawaii Corporation and Subsidiaries
Consolidated Non-Performing Assets and Accruing Loans Past
 Due 90 Days or More  (Unaudited)                              Table 9
----------------------------------------------------------------------
                        December September   June    March    December
                           31,      30,       30,      31,       31,
(dollars in millions)     2003     2003      2003     2003      2002
----------------------------------------------------------------------
Non-Performing Assets
Non-Accrual Loans
 Commercial
  Commercial and
   Industrial               $6.0     $7.8      $8.8     $2.4     $5.9
  Commercial Mortgage        9.3     11.0      11.2     17.9     20.3
  Construction                 -        -         -        -      0.5
  Lease Financing            2.2      2.4       2.5      3.2      4.1
----------------------------------------------------------------------
 Total Commercial           17.5     21.2      22.5     23.5     30.8
 Consumer
  Residential Mortgage       9.3      9.7      10.2     11.5     13.9
  Home Equity                0.5      0.5         -      0.1      0.3
----------------------------------------------------------------------
 Total Consumer              9.8     10.2      10.2     11.6     14.2
----------------------------------------------------------------------
Total Non-Accrual Loans     27.3     31.4      32.7     35.1     45.0
----------------------------------------------------------------------

Foreclosed Real Estate       4.4      8.7       9.3      9.1      9.4

----------------------------------------------------------------------
Total Non-Performing
 Assets                    $31.7    $40.1     $42.0    $44.2    $54.4
======================================================================

Accruing Loans Past Due
 90 Days or More
 Commercial
  Commercial and
   Industrial               $0.7     $0.7      $0.5       $-     $0.2
  Commercial Mortgage          -        -         -      0.4      0.3
  Lease Financing            0.1        -         -        -        -
----------------------------------------------------------------------
 Total Commercial            0.8      0.7       0.5      0.4      0.5
 Consumer
  Residential Mortgage       1.4      2.0       1.8      1.6      0.6
  Home Equity                  -        -       0.1        -        -
  Purchased Home Equity        -      0.1       0.1        -        -
  Other Consumer             1.3      1.1       0.4      2.3      0.7
----------------------------------------------------------------------
 Total Consumer              2.7      3.2       2.4      3.9      1.3
----------------------------------------------------------------------
Total Accruing and Past
 Due                        $3.5     $3.9      $2.9     $4.3     $1.8
======================================================================

Total Loans             $5,757.2 $5,570.4  $5,471.9 $5,565.4 $5,359.0
======================================================================

Ratio of Non-Accrual
 Loans to Total Loans       0.47%    0.56%     0.60%    0.63%    0.84%
----------------------------------------------------------------------

Ratio of Non-Performing
 Assets to Total Loans
 and Foreclosed
Real Estate                 0.55%    0.72%     0.77%    0.79%    1.01%
----------------------------------------------------------------------

Ratio of Non-Performing Assets
 and Accruing Loans
Past Due 90 Days or More
 to Total Loans             0.61%    0.79%     0.82%    0.87%    1.05%
----------------------------------------------------------------------

Quarter to Quarter Changes
 in Non-Performing Assets
Balance at Beginning of
 Quarter                   $40.1    $42.0     $44.2    $54.4    $63.3
 Additions                   2.3      3.2      11.6      4.8     12.0
 Reductions
  Payments and Sales of
   Loans                    (3.4)    (1.8)     (4.3)    (5.6)    (6.9)
  Return to Accrual         (0.8)    (1.5)     (7.5)    (5.6)    (1.9)
  Sales of Foreclosed
   Assets                   (4.4)    (1.0)     (0.7)    (1.1)    (9.4)
  Charge-offs/Write-
   downs                    (2.1)    (0.8)     (1.3)    (2.7)    (2.7)
----------------------------------------------------------------------
 Total Reductions          (10.7)    (5.1)    (13.8)   (15.0)   (20.9)

----------------------------------------------------------------------
Balance at End of
 Quarter                   $31.7    $40.1     $42.0    $44.2    $54.4
======================================================================


Bank of Hawaii Corporation and Subsidiaries
Consolidated Allowance for Loan and Lease
 Losses (Unaudited)                                           Table 10
----------------------------------------------------------------------
                            Three Months Ended
                       December September December      Year Ended
                           31,      30,      31,       December 31,
(dollars in millions)     2003     2003     2002      2003     2002
----------------------------------------------------------------------
Balance at Beginning of
 Period                   $132.7   $138.0   $154.5    $142.9   $159.0
Loans Charged-Off
  Commercial
    Commercial and
     Industrial             (2.0)    (1.1)    (2.0)     (5.3)   (13.0)
    Commercial Mortgage        -     (0.2)       -      (0.6)    (2.9)
    Construction               -        -        -      (0.5)    (0.5)
    Lease Financing            -        -     (9.6)     (0.3)    (9.9)
  Consumer
   Residential Mortgage     (0.5)    (0.1)    (0.4)     (1.9)    (3.5)
   Home Equity              (0.3)       -     (0.1)     (0.4)    (0.2)
   Purchased Home Equity    (0.1)    (0.1)       -      (0.2)       -
   Other Consumer           (3.9)    (6.8)    (2.8)    (17.4)   (12.5)
   Lease Financing          (0.1)       -     (0.1)     (0.3)    (0.3)
----------------------------------------------------------------------
Total Charge-Offs           (6.9)    (8.3)   (15.0)    (26.9)   (42.8)
Recoveries on Loans
 Previously Charged-Off
  Commercial
    Commercial and
     Industrial              0.9      0.6      1.4       3.9      4.7
    Commercial Mortgage        -        -      0.1       0.1      2.1
    Construction               -        -      0.2       1.0      0.2
   Lease Financing           0.1        -        -       0.1        -
  Consumer
   Residential Mortgage      0.1      0.5      0.3       1.0      1.1
   Home Equity                 -        -        -       0.1      0.1
   Other Consumer            2.0      1.5      1.3       6.2      6.1
   Lease Financing             -        -      0.1       0.1      0.1
  Foreign                    0.1      0.4        -       0.6      0.7
----------------------------------------------------------------------
Total Recoveries             3.3      3.0      3.4      13.1     15.1
----------------------------------------------------------------------
Net Loan Charge-Offs        (3.6)    (5.3)   (11.6)    (13.8)   (27.7)
Provision for Loan and
 Lease Losses                  -        -        -         -     11.6
----------------------------------------------------------------------
Balance at End of Period  $129.1   $132.7   $142.9    $129.1   $142.9
======================================================================

Average Loans
 Outstanding            $5,570.9 $5,546.5 $5,210.4  $5,524.4 $5,411.3
======================================================================

Ratio of Net Charge-Offs
 to Average Loans
 Outstanding
 (annualized)               0.26%    0.38%    0.88%     0.25%    0.51%
Ratio of Allowance to
 Loans and Leases
 Outstanding                2.24%    2.38%    2.67%     2.24%    2.67%

Totals may not add due to rounding.


Bank of Hawaii Corporation and Subsidiaries
Business Segment Selected Financial
 Information (Unaudited)                                     Table 11a
----------------------------------------------------------------------
                                     Investment Treasury
(dollars in      Retail   Commercial  Services  and Other Consolidated
 thousands)      Banking    Banking    Group    Corporate    Total
----------------------------------------------------------------------
Three Months
 Ended December
 31, 2003
Net Interest
 Income           $49,617    $33,505    $3,215     $7,015     $93,352
Provision for
 Loan and Lease
 Losses            (2,288)    (1,694)        -      3,982           -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and Lease
 Losses            47,329     31,811     3,215     10,997      93,352
Non-Interest
 Income            21,051     10,654    15,203      2,529      49,437
----------------------------------------------------------------------
                   68,380     42,465    18,418     13,526     142,789
Non-Interest
 Expense          (41,334)   (20,410)  (16,415)    (5,245)    (83,404)
----------------------------------------------------------------------
Income Before
 Income Taxes      27,046     22,055     2,003      8,281      59,385
Provision for
 Income Taxes     (10,007)    (8,032)     (741)    (1,932)    (20,712)
----------------------------------------------------------------------
Allocated Net
 Income            17,039     14,023     1,262      6,349      38,673
----------------------------------------------------------------------
Allowance
 Funding Value       (130)      (806)       (8)       944           -
GAAP Provision      2,288      1,694         -     (3,982)          -
Economic
 Provision         (3,309)    (2,870)     (107)        (3)     (6,289)
Tax Effect of
 Adjustments          444        746        46      1,091       2,327
----------------------------------------------------------------------
Income Before
 Capital Charge    16,332     12,787     1,193      4,399      34,711
Capital Charge     (5,481)    (5,292)   (1,529)   (10,394)    (22,696)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $10,851     $7,495     $(336)   $(5,995)    $12,015
======================================================================

RAROC (ROE for
 the Company)          33%        26%        8%        21%         19%
======================================================================

Total Assets at
 December 31,
 2003          $3,665,571 $2,295,422  $130,206 $3,370,448  $9,461,647
======================================================================

Three Months
 Ended December
 31, 2002 (1)
Net Interest
 Income           $49,998    $35,557    $3,623     $1,040     $90,218
Provision for
 Loan and Lease
 Losses              (848)   (10,841)        -     11,689           -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and Lease
 Losses            49,150     24,716     3,623     12,729      90,218
Non-Interest
 Income            21,486      8,815    15,850      4,204      50,355
----------------------------------------------------------------------
                   70,636     33,531    19,473     16,933     140,573
Restructuring
 and Other
 Related Costs          -          -         -       (385)       (385)
Information
 Technology
 Systems
 Replacement
 Project             (782)         -         -     (6,270)     (7,052)
Non-Interest
 Expense          (43,625)   (27,373)  (16,068)    (2,210)    (89,276)
----------------------------------------------------------------------
Income Before
 Income Taxes      26,229      6,158     3,405      8,068      43,860
Provision for
 Income Taxes      (9,705)    (1,294)   (1,260)    (2,693)    (14,952)
----------------------------------------------------------------------
Allocated Net
 Income            16,524      4,864     2,145      5,375      28,908
----------------------------------------------------------------------
Allowance
 Funding Value       (163)    (1,380)       (9)     1,552           -
GAAP Provision        848     10,841         -    (11,689)          -
Economic
 Provision         (3,218)    (3,135)     (127)        (9)     (6,489)
Tax Effect of
 Adjustments          937     (2,341)       50      3,755       2,401
----------------------------------------------------------------------
Income (Loss)
 Before Capital
 Charge            14,928      8,849     2,059     (1,016)     24,820
Capital Charge     (5,338)    (5,890)   (1,513)   (16,669)    (29,410)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)           $9,590     $2,959      $546   $(17,685)    $(4,590)
======================================================================

RAROC (ROE for
 the Company)          30%        16%       15%       (4)%         11%
======================================================================

Total Assets at
 December 31,
 2002          $3,293,761 $2,242,035  $134,954 $3,845,668  $9,516,418
======================================================================

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


Bank of Hawaii Corporation and Subsidiaries
Business Segment Selected Financial
 Information (Unaudited)                                     Table 11b
----------------------------------------------------------------------
                                    Investment  Treasury
(dollars in        Retail Commercial  Services  and Other Consolidated
 thousands)       Banking    Banking     Group  Corporate        Total
----------------------------------------------------------------------
Year Ended
 December 31,
 2003
Net Interest
 Income          $206,135   $136,486   $12,879    $10,442    $365,942
Provision for
 Loan and Lease
 Losses            (6,909)    (8,415)        5     15,319           -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and Lease
 Losses           199,226    128,071    12,884     25,761     365,942
Non-Interest
 Income            85,380     39,162    61,598     12,580     198,720
----------------------------------------------------------------------
                  284,606    167,233    74,482     38,341     564,662
Information
 Technology
 Systems
 Replacement
 Project             (986)       (23)     (333)   (20,529)    (21,871)
Non-Interest
 Expense         (168,369)   (88,647)  (64,019)   (14,969)   (336,004)
----------------------------------------------------------------------
Income Before
 Income Taxes     115,251     78,563    10,130      2,843     206,787
Provision for
 Income Taxes     (42,643)   (28,592)   (3,748)     3,391     (71,592)
----------------------------------------------------------------------
Allocated Net
 Income            72,608     49,971     6,382      6,234     135,195
----------------------------------------------------------------------
Allowance
 Funding Value       (595)    (3,987)      (32)     4,614           -
GAAP Provision      6,909      8,415        (5)   (15,319)          -
Economic
 Provision        (11,932)   (12,095)     (457)       (25)    (24,509)
Tax Effect of
 Adjustments        2,093      2,848       186      3,941       9,068
----------------------------------------------------------------------
Income (Loss)
 Before Capital
 Charge            69,083     45,152     6,074       (555)    119,754
Capital Charge    (21,980)   (21,606)   (6,051)   (49,404)    (99,041)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $47,103    $23,546       $23   $(49,959)    $20,713
======================================================================

RAROC (ROE for
 the Company)          35%        23%       11%         0%         15%
======================================================================

Total Assets at
 December 31,
 2003          $3,665,571 $2,295,422  $130,206 $3,370,448  $9,461,647
======================================================================

Year Ended
 December 31,
 2002 (1)
Net Interest
 Income          $203,304   $143,937   $13,263     $9,727    $370,231
Provision for
 Loan and Lease
 Losses            (4,061)   (24,902)      (75)    17,422     (11,616)
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and Lease
 Losses           199,243    119,035    13,188     27,149     358,615
Non-Interest
 Income            83,870     34,497    67,691     12,277     198,335
----------------------------------------------------------------------
                  283,113    153,532    80,879     39,426     556,950
Restructuring
 and Other
 Related Costs          -          -         -     (2,364)     (2,364)
Information
 Technology
 Systems
 Replacement
 Project           (1,369)         -         -    (12,259)    (13,628)
Non-Interest
 Expense         (177,079)  (100,977)  (65,898)    (9,303)   (353,257)
----------------------------------------------------------------------
Income Before
 Income Taxes     104,665     52,555    14,981     15,500     187,701
Provision for
 Income Taxes     (38,725)   (18,221)   (5,543)    (4,032)    (66,521)
----------------------------------------------------------------------
Allocated Net
 Income            65,940     34,334     9,438     11,468     121,180
======================================================================
Allowance
 Funding Value       (835)    (6,035)      (28)     6,898           -
GAAP Provision      4,061     24,902        75    (17,422)     11,616
Economic
 Provision        (11,754)   (14,383)     (499)       (17)    (26,653)
Tax Effect of
 Adjustments        3,155     (1,659)      167      3,901       5,564
----------------------------------------------------------------------
Income Before
 Capital Charge    60,567     37,159     9,153      4,828     111,707
Capital Charge    (21,125)    24,229    (6,110)   (78,777)   (130,241)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $39,442    $12,930    $3,043   $(73,949)   $(18,534)
======================================================================

RAROC (ROE for
 the Company)          32%        17%       16%         6%         10%
======================================================================

Total Assets at
 December 31,
 2002          $3,293,761 $2,242,035  $134,954 $3,845,668  $9,516,418
======================================================================

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


Bank of Hawaii Corporation and Subsidiaries
Quarterly Summary of Selected Consolidated Financial Data
 (Unaudited)                                                  Table 12
----------------------------------------------------------------------
                                       Three Months Ended (1)
(dollars in thousands except   Dec. 31, Sept. 30,  June 30, March 31,
 per share amounts)              2003      2003      2003     2003
----------------------------------------------------------------------
Quarterly Operating Results
Interest Income
   Interest and Fees on Loans
    and Leases                  $80,351   $82,715   $85,954   $85,773
   Income on Investment
    Securities - Held to
    Maturity                      7,183     6,407     3,083     2,283
   Income on Investment
    Securities - Available for
    Sale                         19,032    16,483    19,815    22,463
   Deposits                       1,169     1,179     1,161     1,307
   Funds Sold                        85       248       822       764
   Other                          1,007     1,032     1,016     1,189
----------------------------------------------------------------------
Total Interest Income           108,827   108,064   111,851   113,779
Interest Expense
   Deposits                       9,433    10,284    13,309    14,447
   Security Repurchase
    Agreements                    1,359     1,947     2,391     2,242
   Funds Purchased                  249       271       219       205
   Short-Term Borrowings             17        26        25        24
   Long-Term Debt                 4,417     4,431     5,422     5,861
----------------------------------------------------------------------
Total Interest Expense           15,475    16,959    21,366    22,779
----------------------------------------------------------------------
Net Interest Income              93,352    91,105    90,485    91,000
Provision for Loan and Lease
 Losses                               -         -         -         -
----------------------------------------------------------------------
Net Interest Income After
 Provision for Loan and Lease
 Losses                          93,352    91,105    90,485    91,000
Non-Interest Income
   Trust and Asset Management    12,759    12,511    12,545    13,181
   Mortgage Banking               3,324     5,888     6,061       283
   Service Charges on Deposit
    Accounts                      9,442     8,901     8,645     8,950
   Fees, Exchange, and Other
    Service Charges              13,725    16,034    13,473    12,989
   Investment Securities Gains
    (Losses)                        (20)      639       587       583
   Insurance                      3,597     3,988     3,015     3,080
   Other                          6,610     5,830     6,413     5,687
----------------------------------------------------------------------
Total Non-Interest Income        49,437    53,791    50,739    44,753
Non-Interest Expense
   Salaries and Benefits         46,409    45,731    47,711    46,429
   Net Occupancy Expense          9,933     9,806     9,628     9,613
   Net Equipment Expense          7,395     7,301     9,208     9,748
   Restructuring and Other
    Related Costs                     -         -         -         -
   Information Technology
    Systems Replacement
    Project                           -     4,349    10,105     7,417
   Other                         19,667    21,690    18,742    16,993
----------------------------------------------------------------------
Total Non-Interest Expense       83,404    88,877    95,394    90,200
----------------------------------------------------------------------
Income Before Income Taxes       59,385    56,019    45,830    45,553
Provision for Income Taxes       20,712    19,332    15,796    15,752
----------------------------------------------------------------------
Net Income                      $38,673   $36,687   $30,034   $29,801
======================================================================

Basic Earnings Per Share          $0.70     $0.64     $0.50     $0.49
Diluted Earnings Per Share        $0.66     $0.61     $0.48     $0.47

Balance Sheet Totals
Total Assets                  9,461,647 9,370,755 9,550,934 9,410,210
Net Loans                     5,628,095 5,437,730 5,333,896 5,425,343
Total Deposits                7,332,779 7,102,116 7,140,849 6,987,331
Total Shareholders' Equity      793,132   823,760   913,010   952,007

Performance Ratios
Return on Average Assets           1.66%     1.53%     1.27%     1.31%
Return on Average Equity          18.59%    16.69%    12.93%    12.42%
Efficiency Ratio                  58.41%    61.34%    67.55%    66.44%
Efficiency Ratio excluding
 ITSRP and Restructuring Costs    58.41%    58.34%    60.39%    60.98%

                                      Three Months Ended (1)
(dollars in thousands except  Dec. 31, Sept. 30,  June 30,  March 31,
 per share amounts)             2002      2002      2002      2002
----------------------------------------------------------------------
Quarterly Operating Results
Interest Income
   Interest and Fees on Loans
    and Leases                 $85,945   $89,335   $92,441    $98,645
   Income on Investment
    Securities - Held to
    Maturity                     3,122     3,963     4,544      5,145
   Income on Investment
    Securities - Available
    for Sale                    24,088    26,175    26,805     27,193
   Deposits                      3,578     5,384     6,011      5,047
   Funds Sold                      834       914       752      1,003
   Other                         1,312     1,575     1,395      1,332
----------------------------------------------------------------------
Total Interest Income          118,879   127,346   131,948    138,365
Interest Expense
   Deposits                     17,657    20,547    22,166     23,978
   Security Repurchase
    Agreements                   4,585     7,039     8,256     10,293
   Funds Purchased                 255       299       245        231
   Short-Term Borrowings           217       334       289        649
   Long-Term Debt                5,947     6,946     8,055      8,319
----------------------------------------------------------------------
Total Interest Expense          28,661    35,165    39,011     43,470
----------------------------------------------------------------------
Net Interest Income             90,218    92,181    92,937     94,895
Provision for Loan and Lease
 Losses                              -         -     3,324      8,292
----------------------------------------------------------------------
Net Interest Income After
 Provision for Loan and Lease
 Losses                         90,218    92,181    89,613     86,603
Non-Interest Income
   Trust and Asset Management   13,085    13,655    14,175     14,818
   Mortgage Banking              4,398     3,669     2,842      7,957
   Service Charges on Deposit
    Accounts                     8,326     7,925     7,956      8,410
   Fees, Exchange, and Other
    Service Charges             12,963    13,114    13,065     12,452
   Investment Securities
    Gains (Losses)                 612         -         3          -
   Insurance                     3,099     2,677     2,563      2,599
   Other                         7,872     5,997     7,314      6,789
----------------------------------------------------------------------
Total Non-Interest Income       50,355    47,037    47,918     53,025
Non-Interest Expense
   Salaries and Benefits        44,734    45,371    47,275     49,183
   Net Occupancy Expense        10,638     9,597     9,321      9,593
   Net Equipment Expense        11,077    10,058     9,997     10,121
   Restructuring and Other
    Related Costs                  385         -         -      1,979
   Information Technology
    Systems Replacement
    Project                      7,052     6,576         -          -
   Other                        22,827    20,141    22,777     20,547
----------------------------------------------------------------------
Total Non-Interest Expense      96,713    91,743    89,370     91,423
----------------------------------------------------------------------
Income Before Income Taxes      43,860    47,475    48,161     48,205
Provision for Income Taxes      14,952    17,275    17,145     17,149
----------------------------------------------------------------------
Net Income                     $28,908   $30,200   $31,016    $31,056
======================================================================

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

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

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

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


Bank of Hawaii Corporation and Subsidiaries
2004-2006 Plan (Unaudited)                                   Table 13
---------------------------------------------------------------------
(dollars in millions, except per share              Year Ended
 amounts)                                     2003    2004     2006
---------------------------------------------------------------------

Anticipated Financial Results
--------------------------------------------

Operating Income                               $229    $243     $301
Information Technology Systems Replacement
 Project                                         22       -        -
Provision for Loan and Lease Losses               -       -       26
Provision for Income Taxes                       72      86       97
---------------------------------------------------------------------
Net Income                                     $135    $157     $178
=====================================================================

Average Assets                               $9,378  $9,941  $10,763
Shareholders' Equity                           $793    $733     $733

Economic Performance:
--------------------------------------------
NIACC                                           $21     $51      $92
RAROC                                            21%     23%      27%

Performance Ratios:
--------------------------------------------
Diluted Earnings Per Share                    $2.21   $2.76    $3.39
Return on Average Assets                       1.44%   1.58%    1.65%
Return on Average Equity                         15%     20%      24%
Net Interest Margin                            4.23%   4.10%    4.12%
Efficiency Ratio excluding ITSRP               59.5%   58.0%    53.0%
Leverage Capital Ratio                          8.4%    7.4%     7.0%
Tier 1 Capital Ratio (1)                       12.6%   11.4%    10.9%

The 2004 and 2006 information presented above represents anticipated
financial results. Achievement of these results is subject to a number
of assumptions, risks, and uncertainties, including those described on
page 5 of this release and those set forth from time to time in the
Company's reports filed with the Securities and Exchange Commission.
Actual results could differ materially from these anticipated
financial results.

(1) Preliminary for 2003.


CONTACT: Bank of Hawaii Corporation
Stafford Kiguchi, 808-537-8580 (Media)
877-849-5423 (pager)
skiguchi@boh.com
Cindy Wyrick, 808-537-8430 (Investors/Analysts)
cwyrick@boh.com

SOURCE: Bank of Hawaii Corporation