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Bank of Hawaii Corporation 2004 Financial Results

Click here for a printable version of the Fourth Quarter 2004 Financial Results.

HONOLULU--(BUSINESS WIRE)--Jan. 24, 2005--Bank of Hawaii Corporation (NYSE:BOH)

  • 2004 Diluted Earnings Per Share $3.08, Up 39% From 2003
  • 2004 Net Income $173.3 Million, Up 28% From 2003
  • Board of Directors Increases Share Repurchase Authorization $100 Million
  • Board of Directors Declares Dividend of $0.33 Per Share

Bank of Hawaii Corporation (NYSE:BOH) today reported diluted earnings per share for 2004 of $3.08, up $0.87 or 39.4 percent from diluted earnings per share of $2.21 in 2003. Net income for the year was $173.3 million, up $38.1 million or 28.2 percent from $135.2 million in the previous year. The return on average assets in 2004 was 1.78 percent, up from 1.44 percent in 2003. The return on average equity for the year was 22.78 percent, up from 15.02 percent in 2003.

"I am very pleased with Bank of Hawaii Corporation's financial performance in 2004. We exceeded the financial objectives of the first year of our three-year plan," said Allan R. Landon, Chairman and CEO. "Additionally, we grew our businesses, improved our processes, and maintained excellent asset quality. The Hawaii economy remains solid and we are optimistic about 2005."

Diluted earnings per share for the fourth quarter of 2004 were $0.82, up $0.16 or 24.2 percent from $0.66 per diluted share for the same period last year. Net income in the fourth quarter of 2004 was $46.2 million, up $7.6 million or 19.6 percent from net income of $38.7 million in the fourth quarter last year. Results for the fourth quarter of 2004 included a return to income of $6.5 million before tax ($4.1 million after tax or $0.07 per diluted share), resulting from a release of the allowance for loan and lease losses due to further improvement in the Company's credit quality and continued strong economic conditions. The return on average assets for the fourth quarter of 2004 was 1.89 percent, up from 1.66 percent in the fourth quarter of 2003. The return on average equity was 23.63 percent for the quarter, up from 18.59 percent in the same quarter last year.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the fourth quarter of 2004 was $100.0 million, up $1.2 million from $98.8 million in the third quarter of 2004 and up $6.6 million from $93.4 million in the fourth quarter last year. The increase in net interest income from the previous quarter was largely due to an increase in average earning assets. An analysis of the change in net interest income for the full year of 2004 is included in Table 6.

The net interest margin was 4.40 percent for the fourth quarter of 2004, a 1 basis point increase from 4.39 percent in the previous quarter and a 5 basis point increase from 4.35 percent in the fourth quarter of 2003. The net interest margin for the full year of 2004 was 4.32 percent, a 9 basis point increase from 4.23 percent in 2003.

The Company returned to income $6.5 million of the allowance for loan and lease losses during the fourth quarter of 2004. This was attributable to further improvement in the credit quality of the loan portfolio, lower than anticipated net charge-offs during 2004, management's ongoing assessment of the portfolio, and continued strength in the economic environment. In addition, the Company revised its allocation of the components of the allowance for loan and lease losses as a result of current accounting interpretations.

Non-interest income was $48.4 million for the fourth quarter, a decrease of $4.7 million or 8.9 percent compared to non-interest income of $53.1 million in the third quarter of 2004. Non-interest income in the third quarter of 2004 included a gain of $5.2 million on the sale of assets at the end of a leveraged lease transaction. Excluding this gain, non-interest income increased $0.5 million as growth in trust and asset management fees and service charges on deposits offset losses on the sale of investment securities and a decline in insurance income. Non-interest income was down $1.1 million or 2.2 percent from non-interest income of $49.4 million in the fourth quarter of 2003 largely due to a decline in gains on sales of mortgage loans.

Non-interest expense was $82.1 million in the fourth quarter of 2004, down $2.1 million or 2.5 percent from $84.2 million in the previous quarter and down $1.3 million or 1.6 percent from $83.4 million in the same quarter last year. The decrease for both periods was due to a reduction in salaries and benefits related to incentive compensation and separation expenses. In addition, the fourth quarter of 2003 included higher stock-based compensation expense that was offset by a curtailment gain on post-retirement benefits. An analysis of salary and benefit expenses is included in Table 7.

The efficiency ratio for the fourth quarter of 2004 was 55.37 percent, an improvement from 55.45 percent in the previous quarter and from 58.41 percent in the same quarter last year. The efficiency ratio for the full year of 2004 was 56.14 percent compared to 63.38 percent for 2003. Excluding systems replacement costs, the efficiency ratio for 2003 was 59.51 percent.

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 2004. Non-performing assets were $13.9 million at the end of the quarter, a decrease of $2.1 million, or 13.3 percent, compared to non-performing assets of $16.0 million at the end of the previous quarter. Non-performing assets declined $17.9 million, or 56.3 percent, compared to $31.7 million at the end of 2003. At December 31, 2004 the ratio of non-performing assets to total loans and foreclosed real estate was 0.23 percent compared with 0.27 percent at September 30, 2004 and 0.55 percent at December 31, 2003.

Non-accrual loans were $13.7 million at December 31, 2004, a reduction of $2.1 million, or 13.3 percent, from $15.8 million at September 30, 2004 and down $13.7 million, or 50.0 percent, from $27.3 million at December 31, 2003. Non-accrual loans as a percentage of total loans were 0.23 percent at December 31, 2004, down from 0.27 percent at the end of the previous quarter and down from 0.48 percent at the end of 2003.

Net charge-offs during the fourth quarter of 2004 were $4.6 million, or 0.31 percent (annualized) of total average loans, compared to $0.3 million, or 0.02 percent (annualized) of total average loans in the third quarter of 2004. Net charge-offs in the fourth quarter of 2004 were comprised of $6.7 million in charge-offs partially offset by recoveries of $2.1 million. Net charge-offs during the fourth quarter of 2003 were $3.6 million, or 0.26 percent (annualized) of total average loans. Net charge-offs for the full year of 2004 were $5.5 million, or 0.09 percent of total average loans, a decrease of $8.3 million, or 60.2 percent, from net charge-offs of $13.8 million, or 0.25 percent of total average loans in 2003.

The allowance for loan and lease losses was $106.8 million at December 31, 2004 down from $124.7 million at September 30, 2004 and down from $129.1 million at December 31, 2003. The decrease in the allowance from the previous quarter was partially due to the previously mentioned $6.5 million return to income from the allowance for loan and lease losses. The decrease from the previous year also reflects a $3.5 million return to income from the allowance for loan and lease losses during the second quarter of 2004. In addition, during the fourth quarter of 2004 $6.8 million was reclassified from the allowance for loan and lease losses to other liabilities representing the estimate for probable credit losses inherent in unfunded commitments to extend credit. The process used to determine the reserve for unfunded commitments remains consistent with the process for determining the allowance for loan and lease losses. The allowance for unfunded commitments at December 31, 2004 was up from $6.7 million at September 30, 2004 and down from $6.9 million at December 31, 2003.

The ratio of the allowance for loan and lease losses to total loans was 1.78 percent at December 31, 2004, down from 2.14 percent at September 30, 2004 and down from 2.24 percent at December 31, 2003. If the allowance for unfunded commitments had been reclassified at either September 30, 2004 or at December 31, 2003, the ratio of the allowance for loan and lease losses to total loans would have been 2.03 percent and 2.12 percent, respectively.

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

Other Financial Highlights

Total assets were $9.77 billion at December 31, 2004, up from $9.59 billion at September 30, 2004 and up from $9.46 billion at December 31, 2003. Total loans and leases were $5.99 billion at December 31, 2004, up from $5.82 billion at September 30, 2004 and up from $5.76 billion at December 31, 2003. Commercial lending increased during the quarter. Total commercial loans were $2.04 billion at December 31, 2004, up $87 million compared to $1.96 billion at September 30, 2004 and up $51 million from $1.99 billion at December 31, 2003. Consumer lending continued its solid pace in the fourth quarter. Total consumer loans were $3.86 billion at December 31, 2004, up $79 million compared to $3.78 billion at the end of the previous quarter and up $163 million compared to $3.69 billion at the end of 2003.

Total deposits at December 31, 2004 were $7.56 billion, up $151 million from total deposits of $7.41 billion at September 30, 2004 and up $232 million from total deposits of $7.33 billion at December 31, 2003. Non-interest bearing demand deposits were $1.98 billion at December 31, 2004, up $79 million compared to $1.90 billion at September 30, 2004 and up $44 million from $1.93 billion at December 31, 2003.

During the fourth quarter of 2004, Bank of Hawaii Corporation repurchased 1.0 million shares of common stock at a total cost of $50.3 million under its share repurchase program. The average cost was $49.01 per share repurchased during the quarter. From the beginning of the share repurchase program in July 2001 through December 31, 2004, the Company repurchased a total of 34.9 million shares and returned a total of $1,087.5 million to the shareholders at an average cost of $31.13 per share.

The Company's Board of Directors has increased the authorization under the share repurchase program by an additional $100 million of common stock. This new authorization, combined with the previously announced authorizations of $1,150 million, brings the total repurchase authority to $1,250 million. From January 1, 2005 through January 21, 2005, the Company repurchased an additional 0.4 million shares of common stock at an average cost of $48.98 per share. Remaining buyback authority under the share repurchase program was $141.7 million at January 21, 2005.

The Company's capital and liquidity remain strong. At December 31, 2004 the Tier 1 leverage ratio was 8.29 percent compared to 7.69 percent at September 30, 2004 and 8.43 percent at December 31, 2003.

The Company's Board of Directors has declared a quarterly cash dividend of $0.33 per share on the Company's outstanding shares. The dividend will be payable on March 14, 2005 to shareholders of record at the close of business on February 28, 2005.

Outlook

Hawaii enters 2005 with continued payroll growth, low unemployment, nominal personal income growth approaching 6.0 percent, reasonable inflation, and tourism at record levels. The dollar's continuing weakness and solid economic growth in Asia should contribute to further increases in international tourism. Construction and real estate investment are expected to remain strong drivers of growth in the Hawaii economy.

Bank of Hawaii Corporation currently estimates that its net income for 2005 should be approximately $174 million to $177 million. Based on current economic conditions, the Company expects further credit quality improvement and, as a result, the allowance for loan and lease losses may be further reduced. Net income estimates for 2005 include a $10 million provision for loan and lease losses. An analysis of credit quality is performed quarterly to determine the adequacy of the allowance for loan and lease losses. The results of this analysis determine the timing and amount of the provision for loan and lease losses. Earnings per share and return on equity projections continue to be dependent upon, among other things, the terms and timing of share repurchases.

Conference Call Information

The Company will review its fourth quarter 2004 financial results 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 800-573-4752 in the United States or 617-224-4324 for international callers. No confirmation code is required to access the call. A replay will be available for one week beginning Monday, January 24, 2005 by calling 888-286-8010 in the United States or 617-801-6888 for international callers and entering the number 60030955 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.

Forward-Looking Statements

This news release, including the statements under the caption "Outlook," contains forward-looking statements concerning, among other things, the economic and business environment in our service area and elsewhere, credit quality, the expected level of loan and lease loss provisioning, and anticipated net income and other financial and business matters in future periods. Our forward-looking statements are based on numerous assumptions, any of which 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 and repayment of maturing debt; 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             Year
                                   Ended                Ended
Earnings Highlights and        December 31,         December 31,
 Performance Ratios           2004     2003       2004        2003
----------------------------------------------------------------------

Net Income                   $46,241  $38,673    $173,339    $135,195
Basic Earnings Per Share        0.86     0.70        3.26        2.32
Diluted Earnings Per Share      0.82     0.66        3.08        2.21
Cash Dividends                18,200   16,770      66,326      50,589
Net Income to Average Total
 Assets (ROA)                   1.89%    1.66%       1.78%       1.44%
Net Income to Average
 Shareholders' Equity (ROE)    23.63%   18.59%      22.78%      15.02%
Net Interest Margin             4.40%    4.35%       4.32%       4.23%
Efficiency Ratio (1)           55.37%   58.41%      56.14%      63.38%
Efficiency Ratio excluding
 System Replacement Costs      55.37%   58.41%      56.14%      59.51%


----------------------------------------------------------------------
Statement of Condition Highlights and               December 31,
 Performance Ratios                               2004        2003
-------------------------------------         ------------------------

Total Assets                                   $9,766,191  $9,461,647
Net Loans                                       5,880,134   5,628,095
Total Deposits                                  7,564,667   7,332,779
Total Shareholders' Equity                        814,834     793,132

Book Value Per Common Share                        $14.83      $14.44
Allowance / Loans and Leases
 Outstanding                                         1.78%       2.24%
Average Equity / Average
 Assets                                              7.81%       9.60%
Employees (FTE)                                     2,623       2,702
Branches and offices                                   87          89

Market Price Per Share of Common
 Stock for the Quarter Ended:
                                      Closing      $50.74      $42.20
                                      High         $51.10      $42.99
                                      Low          $46.80      $33.69

(1) The efficiency ratio is defined as non-interest expense divided by
    total revenue (net interest income and non-interest income).



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)                  Table 2
----------------------------------------------------------------------
(dollars in thousands    Three Months Ended          Year Ended
 except per share           December 31,            December 31,
  amounts)                2004        2003        2004        2003
----------------------------------------------------------------------
Interest Income
  Interest and Fees on
   Loans and Leases       $84,100     $80,351    $327,953    $334,793
  Income on Investment
   Securities -
   Available for Sale      26,394      19,032      93,528      77,793
  Income on Investment
   Securities - Held
   to Maturity              6,147       7,183      26,204      18,956
  Deposits                    107       1,169       3,480       4,816
  Funds Sold                  356          85       1,058       1,919
  Other                       267       1,007       2,791       4,244
----------------------------------------------------------------------
Total Interest Income     117,371     108,827     455,014     442,521
----------------------------------------------------------------------
Interest Expense
  Deposits                  9,993       9,433      36,743      47,473
  Securities Sold
   Under Agreements to
   Repurchase               3,120       1,359       9,353       7,939
  Funds Purchased             395         249       1,815         944
  Short-Term
   Borrowings                  39          17          82          92
  Long-Term Debt            3,893       4,417      16,431      20,131
----------------------------------------------------------------------
Total Interest Expense     17,440      15,475      64,424      76,579
----------------------------------------------------------------------
Net Interest Income        99,931      93,352     390,590     365,942
Provision for Loan and
 Lease Losses              (6,500)          -     (10,000)          -
----------------------------------------------------------------------
Net Interest Income
 After Provision for
 Loan and Lease Losses    106,431      93,352     400,590     365,942
----------------------------------------------------------------------
Non-Interest Income
  Trust and Asset
   Management              13,934      12,759      53,465      50,996
  Mortgage Banking          1,516       3,324       8,012      15,556
  Service Charges on
   Deposit Accounts        10,155       9,442      39,117      35,938
  Fees, Exchange, and
   Other Service
   Charges                 13,684      13,725      54,907      56,221
  Investment
   Securities Gains
   (Losses)                  (757)        (20)       (794)      1,789
  Insurance                 4,234       4,762      19,241      19,145
  Other                     5,584       5,445      31,146      19,075
----------------------------------------------------------------------
Total Non-Interest
 Income                    48,350      49,437     205,094     198,720
----------------------------------------------------------------------
Non-Interest Expense
  Salaries and
   Benefits                45,043      46,409     184,299     186,280
  Net Occupancy
   Expense                  9,606       9,933      38,347      38,980
  Net Equipment
   Expense                  6,316       7,395      23,926      33,652
  Information
   Technology Systems
   Replacement Project          -           -           -      21,871
  Other                    21,138      19,667      87,868      77,092
----------------------------------------------------------------------
Total Non-Interest
 Expense                   82,103      83,404     334,440     357,875
----------------------------------------------------------------------
Income Before Income
 Taxes                     72,678      59,385     271,244     206,787
Provision for Income
 Taxes                     26,437      20,712      97,905      71,592
----------------------------------------------------------------------
Net Income                $46,241     $38,673    $173,339    $135,195
======================================================================
Basic Earnings Per
 Share                      $0.86       $0.70       $3.26       $2.32
Diluted Earnings Per
 Share                      $0.82       $0.66       $3.08       $2.21
Dividends Declared Per
 Share                      $0.33       $0.30       $1.23       $0.87
Basic Weighted Average
 Shares                53,766,057  55,374,874  53,232,815  58,338,566
Diluted Weighted
 Average Shares        56,055,531  58,570,941  56,241,044  61,085,567
======================================================================



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition (Unaudited)               Table 3
----------------------------------------------------------------------
                                             December 31, December 31,
(dollars in thousands)                          2004         2003
----------------------------------------------------------------------

Assets
Interest-Bearing Deposits                         $4,592     $154,735
Investment Securities - Available for Sale     2,483,719    1,991,116
Investment Securities - Held to Maturity
 (Market Value of $585,836 and $720,699)         589,908      727,233
Funds Sold                                        21,000            -
Loans Held for Sale                               17,642        9,211
Loans and Leases                               5,986,930    5,757,175
  Allowance for Loan and Lease Losses           (106,796)    (129,080)
----------------------------------------------------------------------
    Net Loans                                  5,880,134    5,628,095
----------------------------------------------------------------------
Total Earning Assets                           8,996,995    8,510,390
----------------------------------------------------------------------
Cash and Non-Interest-Bearing Deposits           225,359      363,495
Premises and Equipment                           146,095      160,005
Customers' Acceptance Liability                    1,406        1,707
Accrued Interest Receivable                       36,044       32,672
Foreclosed Real Estate                               191        4,377
Mortgage Servicing Rights                         18,769       22,178
Goodwill                                          36,216       36,216
Other Assets                                     305,116      330,607
----------------------------------------------------------------------
Total Assets                                  $9,766,191   $9,461,647
======================================================================
Liabilities
Deposits
  Non-Interest-Bearing Demand                 $1,977,703   $1,933,928
  Interest-Bearing Demand                      1,536,323    1,356,330
  Savings                                      2,960,351    2,833,379
  Time                                         1,090,290    1,209,142
----------------------------------------------------------------------
Total Deposits                                 7,564,667    7,332,779
----------------------------------------------------------------------
Securities Sold Under Agreements to
 Repurchase                                      568,981      472,757
Funds Purchased                                  149,635      109,090
Short-Term Borrowings                             15,000       12,690
Banker's Acceptances Outstanding                   1,406        1,707
Retirement Benefits Payable                       65,708       61,841
Accrued Interest Payable                           7,021        7,483
Taxes Payable and Deferred Taxes                 229,928      207,101
Other Liabilities                                 96,373      138,999
Long-Term Debt                                   252,638      324,068
----------------------------------------------------------------------
Total Liabilities                              8,951,357    8,668,515
----------------------------------------------------------------------
Shareholders' Equity
Common Stock ($.01 par value); authorized
 500,000,000 shares; issued / outstanding:
 December 2004 - 81,711,752 / 54,960,857,
 December 2003 - 81,647,729 / 54,928,480,            813          807
Capital Surplus                                  450,998      391,701
Accumulated Other Comprehensive Income
 (Loss)                                          (12,917)      (5,711)
Retained Earnings                              1,282,425    1,199,077
Deferred Stock Grants                             (8,433)      (8,309)
Treasury Stock, at Cost (Shares: December
 2004 - 26,750,895, December 2003 -
 26,719,249)                                    (898,052)    (784,433)
----------------------------------------------------------------------
Total Shareholders' Equity                       814,834      793,132
----------------------------------------------------------------------
Total Liabilities and Shareholders' Equity    $9,766,191   $9,461,647
======================================================================



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, 2003   $793,132     $807   $391,701   $(5,711)
Comprehensive Income:
  Net Income                    173,339        -          -         -
  Other Comprehensive
   Income, Net of Tax:
    Change in Unrealized
     Gains and Losses on
     Investment Securities       (5,519)       -          -    (5,519)
    Change in Pension
     Liability Adjustments       (1,687)       -          -    (1,687)
  Total Comprehensive Income

Common Stock Issued under
 Stock Plans and Related Tax
 Benefits (5,280,205 shares)    159,972        6     59,297         -
Treasury Stock Purchased
 (5,243,458 shares)            (238,077)       -          -         -
Cash Dividends Paid             (66,326)       -          -         -
----------------------------------------------------------------------
Balance at December 31, 2004   $814,834     $813   $450,998  $(12,917)
======================================================================

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)
    Change in Pension
     Liability Adjustments         (936)       -          -      (936)
  Total Comprehensive Income

Common Stock Issued under
 Stock Plans and Related Tax
 Benefits (1,683,424 shares)     40,115        1     19,509         -
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)
======================================================================

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

Balance at December 31, 2003 $1,199,077  $(8,309) $(784,433)
Comprehensive Income:
  Net Income                    173,339        -          -  $173,339
  Other Comprehensive
   Income, Net of Tax:
    Change in Unrealized
     Gains and Losses on
     Investment Securities            -        -          -    (5,519)
    Change in Pension
     Liability Adjustments            -        -          -    (1,687)
                                                            ----------
  Total Comprehensive Income                                 $166,133
                                                            ==========

Common Stock Issued under
 Stock Plans and Related Tax
 Benefits (5,280,205 shares)    (23,665)    (124)   124,458
Treasury Stock Purchased
 (5,243,458 shares)                   -        -   (238,077)
Cash Dividends Paid             (66,326)       -          -
-------------------------------------------------------------
Balance at December 31, 2004 $1,282,425  $(8,433) $(898,052)
=============================================================

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)
    Change in Pension
     Liability Adjustments            -        -          -      (936)
                                                            ----------
  Total Comprehensive Income                                 $117,825
                                                            ==========

Common Stock Issued under
 Stock Plans and Related Tax
 Benefits (1,683,424 shares)     (1,439)  (6,885)    28,929
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)
=============================================================



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, 2004      September 30, 2004
                        Average Income/ Yield/  Average Income/ Yield/
(dollars in millions)   Balance Expense  Rate   Balance Expense  Rate
----------------------------------------------------------------------
Earning Assets
Interest-Bearing
 Deposits                 $21.0   $0.1   2.05%    $82.6   $0.5   2.39%
Funds Sold                 74.3    0.4   1.92      28.6    0.1   1.51
Investment Securities
  Available for Sale    2,444.9   26.4   4.32   2,325.5   24.6   4.23
  Held to Maturity        615.1    6.1   4.00     659.0    6.3   3.87
Loans Held for Sale        15.9    0.2   5.72      11.3    0.2   5.74
Loans and Leases
  Commercial and
   Industrial             773.6   11.2   5.78     796.2   10.6   5.34
  Construction            115.2    1.5   5.10      81.1    1.0   5.01
  Commercial Mortgage     624.4    8.6   5.47     658.9    8.8   5.29
  Residential Mortgage  2,304.9   32.3   5.61   2,282.6   32.1   5.62
  Installment             738.2   15.6   8.38     722.7   15.2   8.38
  Home Equity             632.6    8.4   5.25     583.7    7.1   4.83
  Purchased Home
   Equity                 134.4    1.2   3.71     155.2    1.7   4.29
  Lease Financing         511.1    5.1   3.97     516.0    5.4   4.17
----------------------------------------------------------------------
Total Loans and Leases  5,834.4   83.9   5.73   5,796.4   81.9   5.63
----------------------------------------------------------------------
Other                      60.7    0.3   1.74      78.7    0.8   4.05
----------------------------------------------------------------------
Total Earning Assets    9,066.3  117.4   5.17   8,982.1  114.4   5.08
----------------------------------------------------------------------
Cash and Non-Interest-
 Bearing Deposits         307.5                   316.9
Other Assets              369.2                   369.5
                       ---------               ---------
Total Assets           $9,743.0                $9,668.5
                       =========               =========

Interest-Bearing
 Liabilities
Interest-Bearing
 Deposits
  Demand               $1,500.0   $1.3   0.33% $1,471.0   $0.9   0.24%
  Savings               2,998.5    3.6   0.48   2,998.4    3.2   0.43
  Time                  1,063.7    5.1   1.92   1,078.4    4.9   1.81
----------------------------------------------------------------------
Total Interest-Bearing
 Deposits               5,562.2   10.0   0.71   5,547.8    9.0   0.64
----------------------------------------------------------------------
Short-Term Borrowings     776.0    3.5   1.82     816.9    2.8   1.36
Long-Term Debt            252.6    3.9   6.16     246.8    3.8   6.22
----------------------------------------------------------------------
Total Interest-Bearing
 Liabilities            6,590.8   17.4   1.05   6,611.5   15.6   0.94
----------------------------------------------------------------------
Net Interest Income             $100.0                   $98.8
                                =======                 =======
  Interest Rate Spread                   4.12%                   4.14%
  Net Interest Margin                    4.40%                   4.39%
Non-Interest-Bearing
 Demand Deposits        1,954.2                 1,932.0
Other Liabilities         419.4                   393.4
Shareholders' Equity      778.6                   731.6
                       ---------               ---------
Total Liabilities and
 Shareholders' Equity  $9,743.0                $9,668.5
                       =========               =========

-----------------------------------------------
                          Three Months Ended
                          December 31, 2003
                        Average Income/ Yield/
(dollars in millions)   Balance Expense  Rate
-----------------------------------------------
Earning Assets
Interest-Bearing
 Deposits                $218.6   $1.2    2.12%
Funds Sold                 34.3    0.1    0.99
Investment Securities
 Available for Sale     1,900.2   19.0    4.01
 Held to Maturity         740.5    7.2    3.88
Loans Held for Sale        13.9    0.2    6.21
Loans and Leases
 Commercial and
  Industrial              858.2   10.6    4.90
 Construction              99.2    1.1    4.30
 Commercial Mortgage      627.4    8.9    5.62
 Residential Mortgage   2,336.3   34.5    5.90
 Installment              598.1   13.4    8.89
 Home Equity              453.0    5.6    4.89
 Purchased Home Equity    104.7    0.6    2.24
 Lease Financing          494.0    5.5    4.44
-----------------------------------------------
Total Loans and Leases  5,570.9   80.2    5.73
-----------------------------------------------
Other                      76.8    1.0    5.20
-----------------------------------------------
Total Earning Assets    8,555.2  108.9    5.07
-----------------------------------------------
Cash and Non-Interest-
 Bearing Deposits         323.5
Other Assets              379.1
                       ---------
Total Assets           $9,257.8
                       =========

Interest-Bearing
 Liabilities
Interest-Bearing
 Deposits
 Demand                $1,293.8    0.5    0.16%
 Savings                2,786.6    3.2    0.46
 Time                   1,227.9    5.7    1.83
-----------------------------------------------
Total Interest-Bearing
 Deposits               5,308.3    9.4    0.71
-----------------------------------------------
Short-Term Borrowings     608.0    1.7    1.06
Long-Term Debt            324.2    4.4    5.43
-----------------------------------------------
Total Interest-Bearing
 Liabilities            6,240.5   15.5    0.99
-----------------------------------------------
Net Interest Income              $93.4
                                =======
 Interest Rate Spread                     4.08%
 Net Interest Margin                      4.35%
Non-Interest-Bearing
 Demand Deposits        1,836.4
Other Liabilities         355.7
Shareholders' Equity      825.2
                       ---------
Total Liabilities and
 Shareholders' Equity  $9,257.8
                       =========



Bank of Hawaii Corporation and Subsidiaries
Consolidated Average Balances and Interest Rates - Taxable
 Equivalent Basis (Unaudited)                                 Table 5b
----------------------------------------------------------------------
                             Year Ended              Year Ended
                          December 31, 2004       December 31, 2003
                        Average Income/ Yield/  Average Income/ Yield/
(dollars in millions)   Balance Expense  Rate   Balance Expense  Rate
----------------------------------------------------------------------
Earning Assets
Interest-Bearing
 Deposits                $189.7   $3.5   1.83%   $227.3   $4.8   2.12%
Funds Sold                 85.6    1.0   1.24     162.9    1.9   1.18
Investment Securities
  Available for Sale    2,227.8   93.7   4.21   2,142.8   77.9   3.64
  Held to Maturity        675.7   26.2   3.88     487.6   19.0   3.89
Loans Held for Sale        15.8    0.9   5.58      39.5    2.2   5.48
Loans and Leases
  Commercial and
   Industrial             810.4   42.3   5.22     860.3   41.9   4.87
  Construction             99.3    4.5   4.56      96.3    4.4   4.56
  Commercial Mortgage     639.1   34.5   5.40     644.8   37.4   5.81
  Residential Mortgage  2,296.7  129.9   5.66   2,295.0  145.6   6.34
  Installment             703.2   59.6   8.47     548.8   52.6   9.59
  Home Equity             560.3   27.4   4.88     444.6   22.5   5.05
  Purchased Home Equity   168.2    7.4   4.41     144.7    5.9   4.10
  Lease Financing         509.5   21.5   4.21     489.9   22.3   4.55
----------------------------------------------------------------------
Total Loans and Leases  5,786.7  327.1   5.65   5,524.4  332.6   6.02
----------------------------------------------------------------------
Other                      73.8    2.8   3.78      75.7    4.3   5.61
----------------------------------------------------------------------
Total Earning Assets    9,055.1  455.2   5.03   8,660.2  442.7   5.11
----------------------------------------------------------------------
Cash and Non-Interest-
 Bearing Deposits         314.6                   328.4
Other Assets              375.8                   388.9
                       ---------               ---------
Total Assets           $9,745.5                $9,377.5
                       =========               =========

Interest-Bearing
 Liabilities
Interest-Bearing
 Deposits
  Demand               $1,433.1   $3.2   0.22% $1,215.7   $2.5   0.20%
  Savings               2,945.3   13.2   0.45   2,723.9   15.7   0.58
  Time                  1,114.8   20.3   1.82   1,352.3   29.3   2.17
----------------------------------------------------------------------
Total Interest-Bearing
 Deposits               5,493.2   36.7   0.67   5,291.9   47.5   0.90
----------------------------------------------------------------------
Short-Term Borrowings     884.0   11.3   1.27     724.2    9.0   1.24
Long-Term Debt            284.2   16.4   5.78     352.7   20.1   5.71
----------------------------------------------------------------------
Total Interest-Bearing
 Liabilities            6,661.4   64.4   0.97   6,368.8   76.6   1.20
----------------------------------------------------------------------
Net Interest Income             $390.8                  $366.1
                                =======                 =======
  Interest Rate Spread                   4.06%                   3.91%
  Net Interest Margin                    4.32%                   4.23%
Non-Interest-Bearing
 Demand Deposits        1,929.1                 1,753.9
Other Liabilities         394.0                   354.7
Shareholders' Equity      761.0                   900.1
                       ---------               ---------
Total Liabilities and
 Shareholders' Equity  $9,745.5                $9,377.5
                       =========               =========



Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable Equivalent
 Basis (Unaudited)                                             Table 6
----------------------------------------------------------------------
                                       Year Ended December 31, 2004
                                       Compared to December 31, 2003
(dollars in millions)                 Volume (1)  Rate (1)    Total
----------------------------------------------------------------------

Change in Interest Income:
Interest-Bearing Deposits                 $(0.7)     $(0.6)     $(1.3)
Funds Sold                                 (1.0)       0.1       (0.9)
Investment Securities
  Available for Sale                        3.2       12.6       15.8
  Held to Maturity                          7.2          -        7.2
Loans Held for Sale                        (1.3)         -       (1.3)
Loans and Leases
  Commercial and Industrial                (2.5)       2.9        0.4
  Construction                              0.1          -        0.1
  Commercial Mortgage                      (0.3)      (2.6)      (2.9)
  Residential Mortgage                      0.1      (15.8)     (15.7)
  Installment                              13.6       (6.6)       7.0
  Home Equity                               5.7       (0.8)       4.9
  Purchased Home Equity                     1.0        0.5        1.5
  Lease Financing                           0.9       (1.7)      (0.8)
----------------------------------------------------------------------
Total Loans and Leases                     18.6      (24.1)      (5.5)
----------------------------------------------------------------------
Other                                      (0.1)      (1.4)      (1.5)
----------------------------------------------------------------------
Total Change in Interest Income            25.9      (13.4)      12.5
----------------------------------------------------------------------

Change in Interest Expense:
Interest-Bearing Deposits
  Demand                                    0.5        0.2        0.7
  Savings                                   1.2       (3.7)      (2.5)
  Time                                     (4.7)      (4.3)      (9.0)
----------------------------------------------------------------------
Total Interest-Bearing Deposits            (3.0)      (7.8)     (10.8)
----------------------------------------------------------------------
Short-Term Borrowings                       2.1        0.2        2.3
Long-Term Debt                             (3.9)       0.2       (3.7)
----------------------------------------------------------------------
Total Change in Interest Expense           (4.8)      (7.4)     (12.2)
----------------------------------------------------------------------

Change in Net Interest Income             $30.7      $(6.0)     $24.7
======================================================================

(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.



Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits (Unaudited)                              Table 7
----------------------------------------------------------------------
                                   Three Months           Year
                                       Ended              Ended
                                   December 31,       December 31,
(dollars in thousands)            2004     2003      2004      2003
----------------------------------------------------------------------

Salaries                         $27,947  $27,972  $110,851  $114,376
Incentive Compensation             3,999    5,130    15,458    15,747
Stock-Based Compensation           2,926    5,128    11,726     9,215
Commission Expense                 1,991    1,833     7,682    10,797
Retirement and Other Benefits      3,230      882    15,900    14,353
Payroll Taxes                      2,115    2,009    11,063    10,454
Medical, Dental, and Life
 Insurance                         2,050    1,981     8,354     7,371
Separation Expense                   785    1,474     3,265     3,967
----------------------------------------------------------------------
Total Salaries and Benefits      $45,043  $46,409  $184,299  $186,280
======================================================================



Bank of Hawaii Corporation and Subsidiaries
Loan Portfolio Balances (Unaudited)                            Table 8
----------------------------------------------------------------------
                December   September    June       March    December
(dollars in        31,        30,        30,        31,        31,
 thousands)       2004       2004       2004       2004       2003
----------------------------------------------------------------------
Domestic Loans
 Commercial
  Commercial
   and
   Industrial    $871,485   $755,455   $776,815   $793,293   $816,246
  Commercial
   Mortgage       602,678    648,991    643,382    650,566    639,354
  Construction    122,355    104,709     98,916     91,002    101,321
  Lease
   Financing      446,937    447,005    447,673    442,590    435,934
----------------------------------------------------------------------
 Total
  Commercial    2,043,455  1,956,160  1,966,786  1,977,451  1,992,855
----------------------------------------------------------------------
 Consumer
  Residential
   Mortgage     2,293,202  2,261,814  2,257,624  2,254,654  2,320,410
  Home Equity     657,164    609,981    559,225    510,378    467,019
  Purchased
   Home Equity    122,728    143,300    162,730    191,066    212,514
  Other
   Consumer       751,821    729,747    721,386    671,893    658,831
  Lease
   Financing       32,535     33,796     34,676     34,816     35,320
----------------------------------------------------------------------
 Total Consumer 3,857,450  3,778,638  3,735,641  3,662,807  3,694,094
----------------------------------------------------------------------
Total Domestic
 Loans          5,900,905  5,734,798  5,702,427  5,640,258  5,686,949
----------------------------------------------------------------------
Foreign Loans      86,025     80,777     84,887     74,738     70,226
----------------------------------------------------------------------
Total Loans and
 Leases        $5,986,930 $5,815,575 $5,787,314 $5,714,996 $5,757,175
======================================================================


Selected Concentrations of Credit Exposure (Unaudited)
----------------------------------------------------------------------
                         December 31, 2004         Sept. 30, Dec. 31,
                                                      2004    2003 (1)
(dollars in                    Unused      Total     Total     Total
 thousands)      Outstanding Commitments Exposure  Exposure  Exposure
----------------------------------------------------------------------
Air
 Transportation
 United States
  Regional
  Passenger
  Carriers          $41,057     $11,707   $52,764   $57,505   $59,231
 United States
  National
  Passenger
  Carriers           39,594           -    39,594    37,771    37,259
 Passenger
  Carriers Based
  Outside United
  States             25,910           -    25,910    28,540    31,549
 Cargo Carriers      13,771           -    13,771    13,771    14,405
----------------------------------------------------------------------
Total Air
 Transportation    $120,332     $11,707  $132,039  $137,587  $142,444
======================================================================

Guam
 Hotel               $6,014          $-    $6,014    $9,348   $17,733
 Other Commercial   143,819      42,467   186,286   197,460   184,129
 Consumer           376,948      13,486   390,434   321,657   288,831
----------------------------------------------------------------------
Total Guam         $526,781     $55,953  $582,734  $528,465  $490,693
======================================================================

Syndicated
 Exposure          $201,359    $588,399  $789,758  $790,354  $925,864
======================================================================

Other Large
 Borrowers (2)     $109,921    $192,481  $302,402  $298,026  $336,748
======================================================================

Exposure includes loans, leveraged leases and operating leases.

(1) For three borrowers, reclassifications occurred between Regional
    and National Carriers. Syndicated Exposure was restated.

(2) Other Large Borrowers is defined as exposure with commitments of
    $25 million and greater, excluding those collateralized by cash
    and those separately identified as Air Transportation, Guam, and
    Syndicated Exposure.



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
(dollars in        31,        30,        30,        31,        31,
 thousands)       2004       2004       2004       2004       2003
----------------------------------------------------------------------

Non-Performing
 Assets
Non-Accrual
 Loans
 Commercial
  Commercial
   and
   Industrial        $683       $775       $680     $6,009     $6,015
  Commercial
   Mortgage         2,106      5,552      5,649      7,388      9,337
  Lease
   Financing        2,973      1,913      1,948      1,962      2,181
----------------------------------------------------------------------
 Total
  Commercial        5,762      8,240      8,277     15,359     17,533
----------------------------------------------------------------------
 Consumer
  Residential
   Mortgage         7,688      7,278      7,688      7,685      9,354
  Home Equity         218        251        306        406        460
----------------------------------------------------------------------
 Total Consumer     7,906      7,529      7,994      8,091      9,814
----------------------------------------------------------------------
Total Non-
 Accrual Loans     13,668     15,769     16,271     23,450     27,347
----------------------------------------------------------------------
Foreclosed Real
 Estate               191        208      4,889      4,416      4,377
----------------------------------------------------------------------
Total Non-
 Performing
 Assets           $13,859    $15,977    $21,160    $27,866    $31,724
======================================================================

Accruing Loans
 Past Due 90
 Days or More
 Commercial
  Commercial
   and
   Industrial         $52        $65        $19       $707       $725
  Commercial
   Mortgage             -        688        693        702          -
  Lease
   Financing            -          -          -          -        117
----------------------------------------------------------------------
 Total
  Commercial           52        753        712      1,409        842
----------------------------------------------------------------------
 Consumer
  Residential
   Mortgage           387      2,588        698        595      1,430
  Purchased
   Home Equity        183         97         32        107          -
  Other
   Consumer         1,433      1,533      1,142      1,180      1,210
  Lease
   Financing           30         32         57          -          -
----------------------------------------------------------------------
 Total Consumer     2,033      4,250      1,929      1,882      2,640
----------------------------------------------------------------------
Total Accruing
 and Past Due      $2,085     $5,003     $2,641     $3,291     $3,482
======================================================================

Total Loans and
 Leases        $5,986,930 $5,815,575 $5,787,314 $5,714,996 $5,757,175
======================================================================

Ratio of Non-
 Accrual Loans
 to Total Loans      0.23%      0.27%      0.28%      0.41%      0.48%
----------------------------------------------------------------------

Ratio of Non-
 Performing
 Assets to
 Total Loans
 and Foreclosed
 Real Estate         0.23%      0.27%      0.37%      0.49%      0.55%
----------------------------------------------------------------------

Ratio of Non-
 Performing
 Assets and
 Accruing Loans
 Past Due 90
 Days or More
 to Total Loans      0.27%      0.36%      0.41%      0.55%      0.61%
----------------------------------------------------------------------

Quarter to
 Quarter
 Changes in
 Non-Performing
 Assets
Balance at
 Beginning of
 Quarter          $15,977    $21,160    $27,866    $31,724    $40,144
 Additions          7,178      2,094      3,909      3,293      2,340
 Reductions
  Payments         (8,449)    (1,386)    (4,232)    (4,555)    (3,416)
  Return to
   Accrual           (456)    (1,122)    (2,700)    (1,444)      (839)
  Sales of
   Foreclosed
   Assets            (206)      (682)      (147)      (310)    (4,418)
  Charge-
   offs/Write-
   downs             (185)       (88)    (3,536)      (842)    (2,087)
  Transfer to
   Premises             -     (3,999)         -          -          -
----------------------------------------------------------------------
 Total
  Reductions       (9,296)    (7,277)   (10,615)    (7,151)   (10,760)
----------------------------------------------------------------------
Balance at End
 of Quarter       $13,859    $15,977    $21,160    $27,866    $31,724
======================================================================



Bank of Hawaii Corporation and Subsidiaries
Consolidated Allowance for Loan and Lease Losses (Unaudited)  Table 10
----------------------------------------------------------------------
                     Three Months Ended               Year Ended
                December  September   December         December
(dollars in      31,        30,        31,               31,
 thousands)      2004       2004       2003        2004       2003
----------------------------------------------------------------------

Balance at
 Beginning of
 Period         $124,651   $124,904   $132,675    $129,080   $142,853
Loans Charged-
 Off
 Commercial
  Commercial
   and
   Industrial        465        227      1,997       4,408      5,311
  Commercial
   Mortgage            -          -          -         575        548
  Construction         -          -          -           -        529
  Lease
   Financing         774          -          -       1,381        353
 Consumer
  Residential
   Mortgage          128        226        462         819      1,877
  Home Equity          -         11        250          20        339
  Purchased
   Home Equity       343        173        143         807        257
  Other
   Consumer        4,903      4,268      3,919      18,390     17,412
  Lease
   Financing          47         45        100         155        267
----------------------------------------------------------------------
Total Loans
 Charged-Off       6,660      4,950      6,871      26,555     26,893
----------------------------------------------------------------------
Recoveries on
 Loans
 Previously
 Charged-Off
 Commercial
  Commercial
   and
   Industrial        542      1,206        936       3,973      3,878
  Commercial
   Mortgage          119      1,093         23       2,052        129
  Construction         -         94          3         529        958
  Lease
   Financing           1          2         88          19        106
 Consumer
  Residential
   Mortgage          109        207        115         915      1,027
  Home Equity          5         14          4         158          -
  Purchased
   Home Equity        16         51          -         125        133
  Other
   Consumer        1,267      1,502      2,015       6,136      6,177
  Lease
   Financing          23          9         30         103         82
 Foreign              23        519         62       7,061        630
----------------------------------------------------------------------
Total
 Recoveries on
 Loans
 Previously
 Charged-Off       2,105      4,697      3,276      21,071     13,120
----------------------------------------------------------------------
Net Loan
 Recoveries
 (Charge-Offs)    (4,555)      (253)    (3,595)     (5,484)   (13,773)
Provision for
 Loan and
 Lease Losses     (6,500)         -          -     (10,000)         -
Other
 Adjustments      (6,800)         -          -      (6,800)         -
----------------------------------------------------------------------
Balance at End
 of Period      $106,796   $124,651   $129,080    $106,796   $129,080
======================================================================

Average Loans
 Outstanding  $5,834,379 $5,796,350 $5,570,844  $5,786,663 $5,524,423
======================================================================

Ratio of Net
 Loan Charge-
 Offs to
 Average Loans
 Outstanding
 (annualized)       0.31%      0.02%      0.26%       0.09%      0.25%
Ratio of
 Allowance to
 Loans and
 Leases
 Outstanding        1.78%      2.14%      2.24%       1.78%      2.24%



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, 2004
Net Interest
 Income           $52,531    $33,905    $2,995    $10,500     $99,931
Provision for
 Loan and Lease
 Losses             2,991      1,602         -    (11,093)     (6,500)
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and Lease
 Losses            49,540     32,303     2,995     21,593     106,431
Non-Interest
 Income            22,590      9,410    13,747      2,603      48,350
----------------------------------------------------------------------
                   72,130     41,713    16,742     24,196     154,781
Non-Interest
 Expense          (43,287)   (21,758)  (12,377)    (4,681)    (82,103)
----------------------------------------------------------------------
Income Before
 Income Taxes      28,843     19,955     4,365     19,515      72,678
Provision for
 Income Taxes     (10,672)    (7,379)   (1,615)    (6,771)    (26,437)
----------------------------------------------------------------------
Allocated Net
 Income            18,171     12,576     2,750     12,744      46,241
----------------------------------------------------------------------
Allowance
 Funding Value       (162)      (608)       (6)       776           -
GAAP Provision      2,991      1,602         -    (11,093)     (6,500)
Economic
 Provision         (3,565)    (2,463)      (91)        (1)     (6,120)
Tax Effect of
 Adjustments          272        544        36      3,817       4,669
----------------------------------------------------------------------
Income Before
 Capital Charge    17,707     11,651     2,689      6,243      38,290
Capital Charge     (5,461)    (4,672)   (1,289)    (9,992)    (21,414)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $12,246     $6,979    $1,400    $(3,749)    $16,876
======================================================================

RAROC (ROE for
 the Company)          35%        27%       23%        16%         24%
======================================================================

Total Assets at
 December 31,
 2004          $3,773,950 $2,376,776  $117,602 $3,497,863  $9,766,191
======================================================================


Three Months
 Ended December
 31, 2003 (1)
Net Interest
 Income           $49,691    $33,685    $2,888     $7,088     $93,352
Provision for
 Loan and Lease
 Losses             2,288      1,694         -     (3,982)          -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and Lease
 Losses            47,403     31,991     2,888     11,070      93,352
Non-Interest
 Income            23,229     11,218    12,461      2,529      49,437
----------------------------------------------------------------------
                   70,632     43,209    15,349     13,599     142,789
Non-Interest
 Expense          (44,340)   (21,102)  (12,716)    (5,246)    (83,404)
----------------------------------------------------------------------
Income Before
 Income Taxes      26,292     22,107     2,633      8,353      59,385
Provision for
 Income Taxes      (9,728)    (8,049)     (974)    (1,961)    (20,712)
----------------------------------------------------------------------
Allocated Net
 Income            16,564     14,058     1,659      6,392      38,673
----------------------------------------------------------------------
Allowance
 Funding Value       (130)      (806)       (8)       944           -
GAAP Provision      2,288      1,694         -     (3,982)          -
Economic
 Provision         (3,309)    (2,879)      (98)        (4)     (6,290)
Tax Effect of
 Adjustments          426        737        39      1,126       2,328
----------------------------------------------------------------------
Income Before
 Capital Charge    15,839     12,804     1,592      4,476      34,711
Capital Charge     (5,663)    (5,367)   (1,271)   (10,396)    (22,697)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $10,176     $7,437      $321    $(5,920)    $12,014
======================================================================

RAROC (ROE for
 the Company)          31%        26%       14%        21%         19%
======================================================================

Total Assets at
 December 31,
 2003          $3,667,095 $2,323,267  $109,003 $3,362,282  $9,461,647
======================================================================

(1) Certain 2003 information has been reclassified to conform to 2004
    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,
 2004
Net Interest
 Income          $203,541   $135,477   $11,524    $40,048    $390,590
Provision for
 Loan and Lease
 Losses            10,446      3,232        47    (23,725)    (10,000)
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and Lease
 Losses           193,095    132,245    11,477     63,773     400,590
Non-Interest
 Income            90,424     47,470    53,847     13,353     205,094
----------------------------------------------------------------------
                  283,519    179,715    65,324     77,126     605,684
Non-Interest
 Expense         (174,670)   (91,097)  (52,018)   (16,655)   (334,440)
----------------------------------------------------------------------
Income Before
 Income Taxes     108,849     88,618    13,306     60,471     271,244
Provision for
 Income Taxes     (40,274)   (32,790)   (4,924)   (19,917)    (97,905)
----------------------------------------------------------------------
Allocated Net
 Income            68,575     55,828     8,382     40,554     173,339
----------------------------------------------------------------------
Allowance
 Funding Value       (605)    (2,653)      (25)     3,283           -
GAAP Provision     10,446      3,232        47    (23,725)    (10,000)
Economic
 Provision        (14,054)   (10,528)     (370)        (8)    (24,960)
Tax Effect of
 Adjustments        1,559      3,681       129      7,566      12,935
----------------------------------------------------------------------
Income Before
 Capital Charge    65,921     49,560     8,163     27,670     151,314
Capital Charge    (22,157)   (19,905)   (5,209)   (36,458)    (83,729)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $43,764    $29,655    $2,954    $(8,788)    $67,585
======================================================================

RAROC (ROE for
 the Company)          33%        27%       17%        22%         23%
======================================================================

Total Assets at
 December 31,
 2004          $3,773,950 $2,376,776  $117,602 $3,497,863  $9,766,191
======================================================================


Year Ended
 December 31,
 2003 (1)
Net Interest
 Income          $208,189   $137,164   $11,515     $9,074    $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           201,280    128,749    11,520     24,393     365,942
Non-Interest
 Income            95,168     40,975    49,998     12,579     198,720
----------------------------------------------------------------------
                  296,448    169,724    61,518     36,972     564,662
Information
 Technology
 Systems
 Replacement
 Project             (986)       (23)     (333)   (20,529)    (21,871)
Non-Interest
 Expense         (180,484)   (91,376)  (49,174)   (14,970)   (336,004)
----------------------------------------------------------------------
Income Before
 Income Taxes     114,978     78,325    12,011      1,473     206,787
Provision for
 Income Taxes     (42,542)   (28,502)   (4,444)     3,896     (71,592)
----------------------------------------------------------------------
Allocated Net
 Income            72,436     49,823     7,567      5,369     135,195
----------------------------------------------------------------------
Allowance
 Funding Value       (595)    (3,987)      (32)     4,614           -
GAAP Provision      6,909      8,415        (5)   (15,319)          -
Economic
 Provision        (11,932)   (12,120)     (432)       (25)    (24,509)
Tax Effect of
 Adjustments        2,079      2,846       174      3,969       9,068
----------------------------------------------------------------------
Income (Loss)
 Before Capital
 Charge            68,897     44,977     7,272     (1,392)    119,754
Capital Charge    (22,715)   (21,889)   (5,032)   (49,405)    (99,041)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $46,182    $23,088    $2,240   $(50,797)    $20,713
======================================================================

RAROC (ROE for
 the Company)          33%        23%       16%       (1)%         15%
======================================================================

Total Assets at
 December 31,
 2003          $3,667,095 $2,323,267  $109,003 $3,362,282  $9,461,647
======================================================================

(1) Certain 2003 information has been reclassified to conform to 2004
    presentation.



Bank of Hawaii Corporation and Subsidiaries
Quarterly Summary of Selected Consolidated Financial Data
 (Unaudited)                                                  Table 12
----------------------------------------------------------------------
                                   Three Months Ended
(dollars in         December September   June       March    December
 thousands except     31,       30,       30,        31,        31,
 per share amounts)  2004      2004      2004       2004       2003
----------------------------------------------------------------------

Quarterly Operating
 Results
Interest Income
  Interest and Fees
   on Loans and
   Leases            $84,100   $82,079   $80,346    $81,428   $80,351
  Income on
   Investment
   Securities -
   Available for
   Sale               26,394    24,543    21,745     20,846    19,032
  Income on
   Investment
   Securities -
   Held to Maturity    6,147     6,370     6,711      6,976     7,183
  Deposits               107       496     1,646      1,231     1,169
  Funds Sold             356       108       177        417        85
  Other                  267       801       865        858     1,007
----------------------------------------------------------------------
Total Interest
 Income              117,371   114,397   111,490    111,756   108,827
----------------------------------------------------------------------
Interest Expense
  Deposits             9,993     8,990     8,560      9,200     9,433
  Securities Sold
   Under Agreements
   to Repurchase       3,120     2,085     2,222      1,926     1,359
  Funds Purchased        395       683       506        231       249
  Short-Term
   Borrowings             39        15        13         15        17
  Long-Term Debt       3,893     3,845     4,340      4,353     4,417
----------------------------------------------------------------------
Total Interest
 Expense              17,440    15,618    15,641     15,725    15,475
----------------------------------------------------------------------
Net Interest Income   99,931    98,779    95,849     96,031    93,352
Provision for Loan
 and Lease Losses     (6,500)        -    (3,500)         -         -
----------------------------------------------------------------------
Net Interest Income
 After Provision
 for Loan and Lease
 Losses              106,431    98,779    99,349     96,031    93,352
----------------------------------------------------------------------
Non-Interest Income
  Trust and Asset
   Management         13,934    12,672    12,995     13,864    12,759
  Mortgage Banking     1,516     1,711     2,808      1,977     3,324
  Service Charges
   on Deposit
   Accounts           10,155     9,472     9,540      9,950     9,442
  Fees, Exchange,
   and Other
   Service Charges    13,684    13,741    14,243     13,239    13,725
  Investment
   Securities Gains
   (Losses)             (757)        -       (37)         -       (20)
  Insurance            4,234     5,423     4,926      4,658     4,762
  Other                5,584    10,035    10,373      5,154     5,445
----------------------------------------------------------------------
Total Non-Interest
 Income               48,350    53,054    54,848     48,842    49,437
----------------------------------------------------------------------
Non-Interest
 Expense
  Salaries and
   Benefits           45,043    46,566    46,689     46,001    46,409
  Net Occupancy
   Expense             9,606     9,812     9,543      9,386     9,933
  Net Equipment
   Expense             6,316     5,847     5,799      5,964     7,395
  Other               21,138    21,965    23,094     21,671    19,667
----------------------------------------------------------------------
Total Non-Interest
 Expense              82,103    84,190    85,125     83,022    83,404
----------------------------------------------------------------------
Income Before
 Income Taxes         72,678    67,643    69,072     61,851    59,385
Provision for
 Income Taxes         26,437    24,576    24,840     22,052    20,712
----------------------------------------------------------------------
Net Income           $46,241   $43,067   $44,232    $39,799   $38,673
======================================================================

Basic Earnings Per
 Share                 $0.86     $0.82     $0.84      $0.73     $0.70
Diluted Earnings
 Per Share             $0.82     $0.78     $0.79      $0.69     $0.66

Balance Sheet
 Totals
Total Assets       9,766,191 9,594,809 9,688,769 10,013,442 9,461,647
Net Loans          5,880,134 5,690,924 5,662,410  5,587,811 5,628,095
Total Deposits     7,564,667 7,413,240 7,469,288  7,363,922 7,332,779
Total Shareholders'
 Equity              814,834   756,707   699,438    785,768   793,132

Performance Ratios
Net Income to
 Average Total
 Assets (ROA)           1.89%     1.77%     1.80%      1.65%     1.66%
Net Income to
 Average
 Shareholders'
 Equity (ROE)          23.63%    23.42%    24.28%     19.98%    18.59%
Efficiency Ratio
 (1)                   55.37%    55.45%    56.49%     57.31%    58.41%

(1) The efficiency ratio is defined as non-interest expense divided by
    total revenue (net interest income and non-interest income).

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

SOURCE: Bank of Hawaii Corporation