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Bank of Hawaii Corporation First Quarter 2005 Financial Results

Click here for a printable version of the First Quarter 2005 Financial Results.

HONOLULU, Apr 25, 2005 (BUSINESS WIRE) -- Bank of Hawaii Corporation (NYSE:BOH)

-- Diluted Earnings Per Share $0.83, Up 20% From 2004

-- Net Income $45.5 Million, Up 14% From 2004

-- 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 of $0.83 for the first quarter of 2005, an increase from diluted earnings per share of $0.82 in the fourth quarter of 2004 and an increase from $0.69 in the first quarter of 2004. Net income for the first quarter of 2005 was $45.5 million, down $0.7 million or 1.6 percent from net income of $46.2 million in the previous quarter and up $5.7 million or 14.4 percent from $39.8 million reported in the same quarter last year.

Return on average assets for the first quarter of 2005 was 1.88 percent, down slightly from 1.89 percent in the fourth quarter of 2004, and up from 1.65 percent in the first quarter of 2004. Return on average equity was 23.66 percent for the first quarter of 2005, up from 23.63 percent in the previous quarter and up from 19.98 percent in the same quarter last year.

"I am very pleased with Bank of Hawaii Corporation's strong financial performance during the first quarter of 2005," said Allan R. Landon, Chairman and CEO. "We've been able to continue the momentum we established last year, our businesses are growing and our focus on customer service is really making a difference in building value at Bank of Hawaii."

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 improvement in the Company's credit quality and strong economic conditions. Excluding the release of reserves, results for the first quarter of 2005 increased $3.4 million or $0.08 per diluted share from the previous quarter.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the first quarter of 2005 was $100.7 million, up $0.7 million from $100.0 million in the fourth quarter of 2004 and up $4.6 million from $96.1 million in the first quarter last year. The increase in net interest income from the fourth quarter of 2004 was largely due to growth in total loans. The increase in net interest income from the first quarter of 2004 was largely due to higher volume in the investment portfolio. An analysis of the change in net interest income is included in Table 6.

The net interest margin was 4.43 percent for the first quarter of 2005, a 3 basis point increase from 4.40 percent in the previous quarter and a 13 basis point increase from 4.30 percent in the first quarter of 2004.

The Company did not recognize a provision for loan and lease losses during the first quarter of 2005 or during the first quarter of 2004. As previously mentioned, the Company returned to income $6.5 million from a release of the allowance for loan and lease losses during the fourth quarter of 2004.

Non-interest income was $52.3 million for the first quarter of 2005, an increase of $4.0 million or 8.2 percent compared to non-interest income of $48.4 million in the fourth quarter of 2004. Nearly every category experienced growth during the quarter. Compared to the same quarter last year non-interest income was up $3.5 million or 7.1 percent.

Non-interest expense was $80.9 million in the first quarter of 2005, down $1.2 million or 1.5 percent from non-interest expense of $82.1 million in the previous quarter and down $2.2 million or 2.6 percent from $83.0 million in the same quarter last year. Included in the first quarter of 2005 was a $1.1 million gain on the sale of a foreclosed property. Separately, the Company recognized a $1.3 million impairment of goodwill related to its insurance business. An analysis of salary and benefit expenses is included in Table 7.

The efficiency ratio for the first quarter of 2005 was 52.86 percent, an improvement from 55.37 percent in the previous quarter and from 57.31 percent in the same quarter last year.

The Company's business segments are defined as Retail Banking, Commercial Banking, Investment Services Group, and Treasury and Other Corporate. 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 Table 11.

Asset Quality

Bank of Hawaii Corporation's overall asset quality continued to improve when compared to prior quarters. Non-performing assets were $13.4 million at the end of the first quarter of 2005, a decrease of $0.5 million, or 3.6 percent, compared to non-performing assets of $13.9 million at the end of the previous quarter. Non-performing assets declined $14.5 million, or 52.0 percent, compared to $27.9 million at the end of the same quarter last year. At March 31, 2005 the ratio of non-performing assets to total loans, foreclosed real estate, and other investments was 0.22 percent compared with 0.23 percent at December 31, 2004 and 0.49 percent at March 31, 2004.

Non-accrual loans were $12.5 million at March 31, 2005, a reduction of $1.2 million, or 8.6 percent, from $13.7 million at December 31, 2004 and down $11.0 million, or 46.7 percent, from $23.5 million at March 31, 2004. Non-accrual loans as a percentage of total loans were 0.21 percent at March 31, 2005, down from 0.23 percent at December 31, 2004 and down from 0.41 percent at March 31, 2004.

Net charge-offs for the first quarter of 2005 were $3.7 million, or 0.25 percent (annualized) of total average loans, compared to $4.6 million, or 0.31 percent (annualized) of total average loans in the fourth quarter of 2004. Net charge-offs during the first quarter of 2004 were $1.9 million, or 0.13 percent (annualized) of total average loans. Net charge-offs in the first quarter of 2005 were comprised of $5.8 million in charge-offs partially offset by recoveries of $2.1 million.

The allowance for loan and lease losses was $105.0 million at March 31, 2005, down from $106.8 million at December 31, 2004 and down from $127.2 million at March 31, 2004. The decrease in the allowance from the previous year is largely due to $10.0 million returned to income from releases of the allowance for loan and lease losses during 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 $1.8 million decrease in the allowance from the previous quarter was primarily due to net charge-offs of $3.7 million. The allowance for unfunded commitments at March 31, 2005 was $4.9 million, down from $6.8 million at December 31, 2004.

The ratio of the allowance for loan and lease losses to total loans was 1.75 percent at March 31, 2005, down slightly from 1.78 percent at December 31, 2004 and down from 2.23 percent at March 31, 2004. If the allowance for unfunded commitments had been reclassified at March 31, 2004, the ratio of the allowance for loan and lease losses to total loans would have been 2.12 percent.

Credit exposure to the air transportation industry is summarized in Table 8.

Other Financial Highlights

Total assets were $9.91 billion at March 31, 2005, up from $9.77 billion at December 31, 2004 and down from $10.01 billion at March 31, 2004. Total loans and leases were $6.02 billion at March 31, 2005, up from $5.99 billion at December 31, 2004 and up from $5.71 billion at March 31, 2004. Commercial loans outstanding decreased slightly from the previous quarter as payoffs exceeded originations due to the continued strong economy and liquidity in the Hawaii market. Total commercial loans were $2.10 billion at March 31, 2005, down from $2.11 billion at December 31, 2004 and up from $2.04 billion at March 31, 2004. Consumer lending remained strong during the quarter. Total consumer loans were $3.91 billion at March 31, 2005, up from $3.87 billion at the end of the previous quarter and up from $3.68 billion at March 31, 2004. Total deposits at March 31, 2005 were $7.76 billion, up from $7.56 billion at December 31, 2004 and up from $7.36 billion at March 31, 2004.

During the first quarter of 2005, Bank of Hawaii Corporation repurchased 2.4 million shares of common stock at a total cost of $112.6 million under its share repurchase program. The average cost was $47.52 per share. From the beginning of the share repurchase program in July 2001 through March 31, 2005, the Company repurchased a total of 37.3 million shares and returned a total of $1.2 billion to the shareholders at an average cost of $32.17 per share.

The Company's Board of Directors has increased the authorization under the share repurchase program by an additional $100 million. This new authorization, combined with the previously announced authorizations of $1.25 billion, brings the total repurchase authority to $1.35 billion. From April 1, 2005 through April 22, 2005, the Company repurchased an additional 0.5 million shares of common stock at an average cost of $45.16 per share. Remaining buyback authority under the share repurchase program was $127.2 million at April 22, 2005.

The Company's capital and liquidity remain strong. At March 31, 2005 the Tier 1 leverage ratio was 7.42 percent compared to 8.29 percent at December 31, 2004 and 7.88 percent at March 31, 2004.

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 June 14, 2005 to shareholders of record at the close of business on May 31, 2005.

Financial Outlook

Bank of Hawaii Corporation revised its earnings estimate and now believes that net income for the full year of 2005 should be approximately $176 million to $179 million. 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 first quarter 2005 financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The presentation will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation's web site, www.boh.com. The conference call number is 800-599-9829 in the United States or 617-847-8703 for international callers. No confirmation code is required to access the call. A replay will be available for one week beginning Monday, April 25, 2005 by calling 888-286-8010 in the United States or 617-801-6888 for international callers and entering the number 47730945 when prompted. A replay of the presentation will also be available via the Investor Relations link of the Company's web site.

Economy

Hawaii experienced new record heights for tourism volumes, home prices and payroll employment during the first quarter of 2005. Unemployment held steady at a seasonally-adjusted 3.0 percent. Inflation for 2004 was reported to be 3.3 percent, only slightly higher than the national rate. Renewed tourism growth in early 2005 augmented continuing strength in residential investment.

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 "Financial 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, 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 improvements; 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)                                           2005         2004
----------------------------------------------------------------------

At March 31,
------------
Balance Sheet Totals
Total Assets                                  $9,908,030  $10,013,442
Net Loans                                      5,910,784    5,587,811
Deposits                                       7,760,662    7,363,922
Long-Term Debt                                   242,656      319,833
Shareholders' Equity                             716,656      785,768

Average Assets                                 9,845,765    9,677,903
Average Loans and Leases                       6,000,572    5,742,368
Average Deposits                               7,687,798    7,319,902
Average Shareholders' Equity                     780,271      801,247

Three Months Ended March 31,
----------------------------
Operating Results
Interest Income                                 $120,158     $111,756
Net Interest Income                              100,658       96,031
Net Income                                        45,522       39,799
Basic Earnings Per Share                            0.85         0.73
Diluted Earnings Per Share                          0.83         0.69
Dividends Declared Per Share                        0.33         0.30

Performance Ratios
Net Income to Average Total Assets (ROA)            1.88%        1.65%
Net Income to Average Shareholders' Equity
 (ROE)                                             23.66        19.98
Net Interest Margin (1)                             4.43         4.30
Efficiency Ratio (2)                               52.86        57.31
Allowance for Loan and Lease Losses to Loans
 and Leases Outstanding                             1.75         2.23
Dividend Payout Ratio                              38.82        41.10
Book Value Per Common Share                        13.57        14.49
Average Equity to Average Assets                    7.92         8.28
Leverage Ratio                                      7.42         7.88

Employees (FTE)                                    2,593        2,703
Branches and offices                                  87           89

Market Price Per Share of Common Stock for
 the Quarter Ended:
                                      Closing     $45.26       $46.33
                                         High     $50.95       $47.45
                                          Low     $44.33       $41.75

(1) The net interest margin is defined as net interest income,
    annualized and on a fully-taxable equivalent basis, as a
    percentage of average earning assets.

(2) 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
----------------------------------------------------------------------
                                                 Three Months Ended
                                                      March 31,
(dollars in thousands except per share amounts)    2005      2004 (1)
----------------------------------------------------------------------
Interest Income
   Interest and Fees on Loans and Leases          $86,467     $81,428
   Income on Investment Securities - Available
    for Sale                                       27,319      20,846
   Income on Investment Securities - Held to
    Maturity                                        5,825       6,976
   Deposits                                            23       1,231
   Funds Sold                                          75         417
   Other                                              449         858
----------------------------------------------------------------------
Total Interest Income                             120,158     111,756
----------------------------------------------------------------------
Interest Expense
   Deposits                                        11,604       9,200
   Securities Sold Under Agreements to
    Repurchase                                      3,325       1,926
   Funds Purchased                                    733         231
   Short-Term Borrowings                               32          15
   Long-Term Debt                                   3,806       4,353
----------------------------------------------------------------------
Total Interest Expense                             19,500      15,725
----------------------------------------------------------------------
Net Interest Income                               100,658      96,031
Provision for Loan and Lease Losses                     -           -
----------------------------------------------------------------------
Net Interest Income After Provision for Loan
 and Lease Losses                                 100,658      96,031
----------------------------------------------------------------------
Non-Interest Income
   Trust and Asset Management                      14,622      13,864
   Mortgage Banking                                 2,590       1,977
   Service Charges on Deposit Accounts             10,179       9,950
   Fees, Exchange, and Other Service Charges       13,836      13,239
   Insurance                                        5,788       4,658
   Other                                            5,300       5,154
----------------------------------------------------------------------
Total Non-Interest Income                          52,315      48,842
----------------------------------------------------------------------
Non-Interest Expense
   Salaries and Benefits                           44,769      46,001
   Net Occupancy Expense                            9,545       9,386
   Net Equipment Expense                            5,471       5,964
   Other                                           21,078      21,671
----------------------------------------------------------------------
Total Non-Interest Expense                         80,863      83,022
----------------------------------------------------------------------
Income Before Income Taxes                         72,110      61,851
Provision for Income Taxes                         26,588      22,052
----------------------------------------------------------------------
Net Income                                        $45,522     $39,799
======================================================================
Basic Earnings Per Share                            $0.85       $0.73
Diluted Earnings Per Share                          $0.83       $0.69
Dividends Declared Per Share                        $0.33       $0.30
Basic Weighted Average Shares                  53,401,787  54,286,648
Diluted Weighted Average Shares                55,020,050  57,746,520
======================================================================

(1) Certain 2004 information has been reclassified to conform to 2005
    presentation.


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition (Unaudited)               Table 3
----------------------------------------------------------------------
                                    March 31,    Dec. 31,    March 31,
(dollars in thousands)                  2005        2004         2004
----------------------------------------------------------------------

Assets
Interest-Bearing Deposits             $5,897      $4,592     $479,882
Investment Securities - Available
 for Sale                          2,495,447   2,483,719    1,995,713
Investment Securities - Held to
 Maturity
   (Market Value of $547,764,
    $585,836, and $719,308)          558,834     589,908      717,867
Funds Sold                            70,000      21,000      255,000
Loans Held for Sale                   20,897      17,642       67,328
Loans and Leases                   6,015,790   5,986,930    5,714,996
   Allowance for Loan and Lease
    Losses                          (105,006)   (106,796)    (127,185)
----------------------------------------------------------------------
     Net Loans                     5,910,784   5,880,134    5,587,811
----------------------------------------------------------------------
Total Earning Assets               9,061,859   8,996,995    9,103,601
----------------------------------------------------------------------
Cash and Non-Interest-Bearing
 Deposits                            306,852     225,359      313,090
Premises and Equipment               141,615     146,095      155,488
Customers' Acceptance Liability        1,054       1,406        1,844
Accrued Interest Receivable           38,427      36,044       34,658
Foreclosed Real Estate                   183         191        4,416
Mortgage Servicing Rights             18,510      18,769       21,138
Goodwill                              34,959      36,216       36,216
Other Assets                         304,571     305,116      342,991
----------------------------------------------------------------------
Total Assets                      $9,908,030  $9,766,191  $10,013,442
======================================================================
Liabilities
Deposits
   Non-Interest-Bearing Demand    $1,943,616  $1,977,703   $1,915,678
   Interest-Bearing Demand         1,702,158   1,536,323    1,407,494
   Savings                         2,968,624   2,960,351    2,888,877
   Time                            1,146,264   1,090,290    1,151,873
----------------------------------------------------------------------
Total Deposits                     7,760,662   7,564,667    7,363,922
----------------------------------------------------------------------
Securities Sold Under Agreements
 to Repurchase                       664,206     568,981    1,039,204
Funds Purchased                       76,100     149,635       98,370
Short-Term Borrowings                  8,376      15,000       11,349
Banker's Acceptances Outstanding       1,054       1,406        1,844
Retirement Benefits Payable           66,233      65,708       62,298
Accrued Interest Payable               7,669       7,021        6,978
Taxes Payable and Deferred Taxes     274,164     229,928      228,785
Other Liabilities                     90,254      96,373       95,091
Long-Term Debt                       242,656     252,638      319,833
----------------------------------------------------------------------
Total Liabilities                  9,191,374   8,951,357    9,227,674
----------------------------------------------------------------------
Shareholders' Equity
Common Stock ($.01 par value);
 authorized 500,000,000 shares;
 issued / outstanding: March 2005
 - 81,711,752 / 52,826,818,
 December 2004 - 81,711,752 /
 54,960,857, March 2004 -
 81,641,545 / 54,216,350                 815         813          807
Capital Surplus                      453,227     450,998      396,335
Accumulated Other Comprehensive
 Income (Loss)                       (33,469)    (12,917)       4,289
Retained Earnings                  1,310,070   1,282,425    1,222,602
Deferred Stock Grants                 (8,145)     (8,433)      (7,594)
Treasury Stock, at Cost (Shares:
 March 2005 - 28,884,934,
 December 2004 - 26,750,895,
 March 2004 - 27,425,195)         (1,005,842)   (898,052)    (830,671)
Total Shareholders' Equity           716,656     814,834      785,768
----------------------------------------------------------------------
Total Liabilities and
 Shareholders' Equity             $9,908,030  $9,766,191  $10,013,442
======================================================================


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, 2004      $814,834   $813  $450,998  $(12,917)
Comprehensive Income:
  Net Income                        45,522      -         -         -
  Other Comprehensive Income, Net
   of Tax:
    Change in Unrealized Gains
     and Losses on Investment
     Securities                    (20,552)     -         -   (20,552)
  Total Comprehensive Income

Common Stock Issued under Stock
 Plans and Related Tax Benefits
 (278,339 shares)                    9,027      2     2,229         -
Treasury Stock Purchased
 (2,411,752 shares)               (114,580)     -         -         -
Cash Dividends Paid                (17,595)     -         -         -
----------------------------------------------------------------------
Balance at March 31, 2005         $716,656   $815  $453,227  $(33,469)
======================================================================

Balance at December 31, 2003      $793,132   $807  $391,701   $(5,711)
Comprehensive Income:
  Net Income                        39,799      -         -         -
  Other Comprehensive Income, Net
   of Tax:
    Change in Unrealized Gains
     and Losses on Investment
     Securities                     10,000      -         -    10,000
  Total Comprehensive Income

Common Stock Issued under Stock
 Plans and Related Tax Benefits
 (611,820 shares)                   18,482      -     4,634         -
Treasury Stock Purchased
 (1,323,050 shares)                (59,227)     -         -         -
Cash Dividends Paid                (16,418)     -         -         -
----------------------------------------------------------------------
Balance at March 31, 2004         $785,768   $807  $396,335    $4,289
======================================================================

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

Balance at December 31,
 2004                       $1,282,425  $(8,433)   $(898,052)
Comprehensive Income:
  Net Income                    45,522        -            -  $45,522
  Other Comprehensive
   Income, Net of Tax:
    Change in Unrealized
     Gains and Losses on
     Investment Securities           -        -            -  (20,552)
                                                             ---------
  Total Comprehensive
   Income                                                     $24,970
                                                             =========

Common Stock Issued under
 Stock Plans and Related
 Tax Benefits (278,339
 shares)                          (282)     288        6,790
Treasury Stock Purchased
 (2,411,752 shares)                  -        -     (114,580)
Cash Dividends Paid            (17,595)       -            -
-------------------------------------------------------------
Balance at March 31, 2005   $1,310,070  $(8,145) $(1,005,842)
=============================================================

Balance at December 31,
 2003                       $1,199,077  $(8,309)   $(784,433)
Comprehensive Income:
  Net Income                    39,799        -            -  $39,799
  Other Comprehensive
   Income, Net of Tax:
    Change in Unrealized
     Gains and Losses on
     Investment Securities           -        -            -   10,000
                                                             ---------
  Total Comprehensive
   Income                                                     $49,799
                                                             =========

Common Stock Issued under
 Stock Plans and Related
 Tax Benefits (611,820
 shares)                           144      715       12,989
Treasury Stock Purchased
 (1,323,050 shares)                  -        -      (59,227)
Cash Dividends Paid            (16,418)       -            -
-------------------------------------------------------------
Balance at March 31, 2004   $1,222,602  $(7,594)   $(830,671)
=============================================================


Bank of Hawaii Corporation and Subsidiaries
Consolidated Average Balances and Interest Rates - Taxable
 Equivalent Basis (Unaudited)                                  Table 5
----------------------------------------------------------------------
                                                Three Months Ended
                                                  March 31, 2005
                                              Average  Income/ Yield/
(dollars in millions)                         Balance  Expense  Rate
----------------------------------------------------------------------
Earning Assets
Interest-Bearing Deposits                         $4.8      $-   1.93%
Funds Sold                                        12.6     0.1   2.37
Investment Securities
 Available for Sale                            2,491.1    27.4   4.40
 Held to Maturity                                574.6     5.8   4.06
Loans Held for Sale                               13.2     0.2   5.40
Loans and Leases (2)
 Commercial and Industrial                       904.3    13.2   5.90
 Construction                                    124.1     1.7   5.44
 Commercial Mortgage                             605.9     8.5   5.73
 Residential Mortgage                          2,332.1    32.6   5.59
 Installment                                     736.8    15.0   8.27
 Home Equity                                     678.8     9.5   5.65
 Purchased Home Equity                           116.8     1.0   3.54
 Lease Financing                                 501.8     4.8   3.88
----------------------------------------------------------------------
Total Loans and Leases                         6,000.6    86.3   5.80
----------------------------------------------------------------------
Other                                             53.9     0.4   3.38
----------------------------------------------------------------------
Total Earning Assets (3)                       9,150.8   120.2   5.29
----------------------------------------------------------------------
Cash and Non-Interest-Bearing Deposits           315.6
Other Assets                                     379.4
                                             ----------
Total Assets                                  $9,845.8
                                             ==========

Interest-Bearing Liabilities
Interest-Bearing Deposits
 Demand                                       $1,618.1     1.7   0.42
 Savings                                       2,972.3     4.4   0.60
 Time                                          1,114.7     5.5   2.02
----------------------------------------------------------------------
Total Interest-Bearing Deposits                5,705.1    11.6   0.82
----------------------------------------------------------------------
Short-Term Borrowings                            706.2     4.1   2.35
Long-Term Debt                                   248.7     3.8   6.14
----------------------------------------------------------------------
Total Interest-Bearing Liabilities             6,660.0    19.5   1.19
----------------------------------------------------------------------
Net Interest Income                                     $100.7
                                                       ========
 Interest Rate Spread                                            4.10%
 Net Interest Margin                                             4.43%
Non-Interest-Bearing Demand Deposits           1,982.7
Other Liabilities                                422.8
Shareholders' Equity                             780.3
                                             ----------
Total Liabilities and Shareholders' Equity    $9,845.8
                                             ==========

                                                Three Months Ended
                                               December 31, 2004 (1)
                                              Average  Income/ Yield/
(dollars in millions)                         Balance  Expense  Rate
----------------------------------------------------------------------
Earning Assets
Interest-Bearing Deposits                        $21.0    $0.1   2.05%
Funds Sold                                        74.3     0.4   1.92
Investment Securities
 Available for Sale                            2,444.9    26.4   4.32
 Held to Maturity                                615.1     6.1   4.00
Loans Held for Sale                               15.9     0.2   5.72
Loans and Leases (2)
 Commercial and Industrial                       790.7    11.4   5.71
 Construction                                    115.2     1.5   5.10
 Commercial Mortgage                             624.4     8.6   5.47
 Residential Mortgage                          2,304.9    32.3   5.61
 Installment                                     721.1    15.4   8.51
 Home Equity                                     632.6     8.4   5.25
 Purchased Home Equity                           134.4     1.2   3.71
 Lease Financing                                 511.1     5.1   3.97
----------------------------------------------------------------------
Total Loans and Leases                         5,834.4    83.9   5.73
----------------------------------------------------------------------
Other                                             60.7     0.3   1.74
----------------------------------------------------------------------
Total Earning Assets (3)                       9,066.3   117.4   5.17
----------------------------------------------------------------------
Cash and Non-Interest-Bearing Deposits           307.5
Other Assets                                     369.2
                                             ----------
Total Assets                                  $9,743.0
                                             ==========

Interest-Bearing Liabilities
Interest-Bearing Deposits
 Demand                                       $1,500.0     1.3   0.33
 Savings                                       2,998.5     3.6   0.48
 Time                                          1,063.7     5.1   1.92
----------------------------------------------------------------------
Total Interest-Bearing Deposits                5,562.2    10.0   0.71
----------------------------------------------------------------------
Short-Term Borrowings                            776.0     3.5   1.82
Long-Term Debt                                   252.6     3.9   6.16
----------------------------------------------------------------------
Total Interest-Bearing Liabilities             6,590.8    17.4   1.05
----------------------------------------------------------------------
Net Interest Income                                     $100.0
                                                       ========
 Interest Rate Spread                                            4.12%
 Net Interest Margin                                             4.40%
Non-Interest-Bearing Demand Deposits           1,954.2
Other Liabilities                                419.4
Shareholders' Equity                             778.6
                                             ----------
Total Liabilities and Shareholders' Equity    $9,743.0
                                             ==========

                                                Three Months Ended
                                                March 31, 2004 (1)
                                              Average  Income/ Yield/
(dollars in millions)                         Balance  Expense  Rate
----------------------------------------------------------------------
Earning Assets
Interest-Bearing Deposits                       $249.6    $1.2   1.98%
Funds Sold                                       168.9     0.4   0.99
Investment Securities
 Available for Sale                            1,988.5    20.8   4.20
 Held to Maturity                                719.6     7.0   3.88
Loans Held for Sale                               15.4     0.2   5.33
Loans and Leases (2)
 Commercial and Industrial                       844.5    10.1   4.81
 Construction                                    100.4     1.1   4.31
 Commercial Mortgage                             634.1     8.6   5.45
 Residential Mortgage                          2,317.5    33.3   5.75
 Installment                                     650.9    14.3   8.84
 Home Equity                                     489.2     5.8   4.75
 Purchased Home Equity                           204.9     2.7   5.18
 Lease Financing                                 500.9     5.4   4.33
----------------------------------------------------------------------
Total Loans and Leases                         5,742.4    81.3   5.68
----------------------------------------------------------------------
Other                                             77.5     0.9   4.45
----------------------------------------------------------------------
Total Earning Assets (3)                       8,961.9   111.8   5.00
----------------------------------------------------------------------
Cash and Non-Interest-Bearing Deposits           327.6
Other Assets                                     388.4
                                             ----------
Total Assets                                  $9,677.9
                                             ==========

Interest-Bearing Liabilities
Interest-Bearing Deposits
 Demand                                       $1,370.0     0.5   0.15
 Savings                                       2,871.6     3.3   0.46
 Time                                          1,188.8     5.4   1.83
----------------------------------------------------------------------
Total Interest-Bearing Deposits                5,430.4     9.2   0.68
----------------------------------------------------------------------
Short-Term Borrowings                            862.3     2.2   1.01
Long-Term Debt                                   320.9     4.3   5.44
----------------------------------------------------------------------
Total Interest-Bearing Liabilities             6,613.6    15.7   0.96
----------------------------------------------------------------------
Net Interest Income                                      $96.1
                                                       ========
 Interest Rate Spread                                            4.04%
 Net Interest Margin                                             4.30%
Non-Interest-Bearing Demand Deposits           1,889.5
Other Liabilities                                373.6
Shareholders' Equity                             801.2
                                             ----------
Total Liabilities and Shareholders' Equity    $9,677.9
                                             ==========

(1) Certain 2004 information has been reclassified to conform to 2005
    presentation.

(2) Non-performing loans are included in the respective average loan
    balances. Income, if any, on such loans is recognized on a cash
    basis.

(3) Interest income includes taxable-equivalent basis adjustment based
    upon a statutory tax rate of 35%.


Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable
 Equivalent Basis (Unaudited)                                  Table 6
----------------------------------------------------------------------
                                  Three Months Ended March 31, 2005
                                     Compared to December 31, 2004
(dollars in millions)            Volume (1) Rate (1) Time (1)    Total
----------------------------------------------------------------------
Change in Interest Income:
Interest-Bearing Deposits            $(0.1)      $-       $-    $(0.1)
Funds Sold                            (0.4)     0.1        -     (0.3)
Investment Securities
  Available for Sale                   0.5      0.5        -      1.0
  Held to Maturity                    (0.4)     0.1        -     (0.3)
Loans and Leases
  Commercial and Industrial            1.7      0.3     (0.2)     1.8
  Construction                         0.1      0.1        -      0.2
  Commercial Mortgage                 (0.3)     0.4     (0.2)    (0.1)
  Residential Mortgage                 0.4     (0.1)       -      0.3
  Installment                          0.3     (0.4)    (0.3)    (0.4)
  Home Equity                          0.7      0.6     (0.2)     1.1
  Purchased Home Equity               (0.2)       -        -     (0.2)
  Lease Financing                     (0.1)    (0.1)    (0.1)    (0.3)
----------------------------------------------------------------------
Total Loans and Leases                 2.6      0.8     (1.0)     2.4
----------------------------------------------------------------------
Other                                 (0.1)     0.2        -      0.1
----------------------------------------------------------------------
Total Change in Interest Income        2.1      1.7     (1.0)     2.8
----------------------------------------------------------------------

Change in Interest Expense:
Interest-Bearing Deposits
  Demand                               0.1      0.3        -      0.4
  Savings                                -      0.9     (0.1)     0.8
  Time                                 0.2      0.3     (0.1)     0.4
----------------------------------------------------------------------
Total Interest-Bearing Deposits        0.3      1.5     (0.2)     1.6
----------------------------------------------------------------------
Short-Term Borrowings                 (0.3)     1.0     (0.1)     0.6
Long-Term Debt                        (0.1)       -        -     (0.1)
----------------------------------------------------------------------
Total Change in Interest Expense      (0.1)     2.5     (0.3)     2.1
----------------------------------------------------------------------

Change in Net Interest Income         $2.2    $(0.8)   $(0.7)    $0.7
======================================================================

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


Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits (Unaudited)                              Table 7
----------------------------------------------------------------------
                                                   Three Months Ended
                                                       March 31,
(dollars in thousands)                               2005      2004
----------------------------------------------------------------------

Salaries                                            $26,053   $27,204
Incentive Compensation                                3,968     3,816
Stock-Based Compensation                              1,715     2,896
Commission Expense                                    2,252     1,627
Retirement and Other Benefits                         4,768     4,357
Payroll Taxes                                         3,453     3,430
Medical, Dental, and Life Insurance                   2,231     2,104
Separation Expense                                      329       567
----------------------------------------------------------------------
Total Salaries and Benefits                         $44,769   $46,001
======================================================================


Bank of Hawaii Corporation and Subsidiaries
Loan Portfolio Balances (Unaudited)                            Table 8
----------------------------------------------------------------------
                                    March 31, December 31,   March 31,
(dollars in thousands)                  2005      2004 (1)    2004 (1)
----------------------------------------------------------------------

Commercial
  Commercial and Industrial         $918,878     $909,264    $822,655
  Commercial Mortgage                609,689      602,678     650,565
  Construction                       107,403      122,355      91,002
  Lease Financing                    468,349      479,100     474,288
----------------------------------------------------------------------
Total Commercial                   2,104,319    2,113,397   2,038,510
----------------------------------------------------------------------
Consumer
  Residential Mortgage             2,342,062    2,326,385   2,273,333
  Home Equity                        694,261      657,164     510,378
  Purchased Home Equity              109,632      122,728     191,066
  Other Consumer                     734,836      734,721     666,893
  Lease Financing                     30,680       32,535      34,816
----------------------------------------------------------------------
Total Consumer                     3,911,471    3,873,533   3,676,486
----------------------------------------------------------------------
Total Loans and Leases            $6,015,790   $5,986,930  $5,714,996
======================================================================


Air Transportation Credit Exposure (Unaudited)
----------------------------------------------------------------------
                               March 31,           Dec. 31,  Mar. 31,
                                   2005               2004      2004
                                 Unused     Total    Total     Total
(dollars in     Outstanding Commitments  Exposure Exposure  Exposure
 thousands)
----------------------------------------------------------------------
Air
 Transportation
  United States
   Regional
   Passenger
   Carriers         $40,388     $10,131   $50,519   $52,764   $58,176
  United States
   National
   Passenger
   Carriers          39,834           -    39,834    39,594    37,413
  Passenger
   Carriers
   Based Outside
   United States     24,888           -    24,888    25,910    30,475
  Cargo Carriers     13,475           -    13,475    13,771    14,122
----------------------------------------------------------------------
Total Air
 Transportation    $118,585     $10,131  $128,716  $132,039  $140,186
======================================================================

Exposure includes loans, leveraged leases and operating leases.

(1) Certain 2004 information has been reclassified to conform to 2005
    presentation.


Bank of Hawaii Corporation and Subsidiaries
Consolidated Non-Performing Assets and Accruing Loans
 Past Due 90 Days or More  (Unaudited)                         Table 9
----------------------------------------------------------------------
(dollars in      March 31,   Dec. 31,  Sept. 30,   June 30,  March 31,
 thousands)          2005       2004       2004       2004       2004
----------------------------------------------------------------------

Non-Performing
 Assets
Non-Accrual
 Loans
  Commercial
    Commercial
     and
     Industrial      $470       $683       $775       $680     $6,009
    Commercial
     Mortgage       1,922      2,106      5,552      5,649      7,388
    Lease
     Financing      2,418      2,973      1,913      1,948      1,962
----------------------------------------------------------------------
  Total
   Commercial       4,810      5,762      8,240      8,277     15,359
----------------------------------------------------------------------
  Consumer
    Residential
     Mortgage       7,503      7,688      7,278      7,688      7,685
    Home Equity       185        218        251        306        406
----------------------------------------------------------------------
  Total
   Consumer         7,688      7,906      7,529      7,994      8,091
----------------------------------------------------------------------
Total Non-
 Accrual Loans     12,498     13,668     15,769     16,271     23,450
----------------------------------------------------------------------
Foreclosed Real
 Estate               183        191        208      4,889      4,416
Other
 Investments          684          -          -          -          -
----------------------------------------------------------------------
Total Non-
 Performing
 Assets           $13,365    $13,859    $15,977    $21,160    $27,866
======================================================================

Accruing Loans
 Past Due 90
 Days or More
  Commercial
    Commercial
     and
     Industrial       $29        $52        $65        $19       $707
    Commercial
     Mortgage       2,243          -        688        693        702
----------------------------------------------------------------------
  Total
   Commercial       2,272         52        753        712      1,409
----------------------------------------------------------------------
  Consumer
    Residential
     Mortgage         604        387      2,588        698        595
    Purchased
     Home
     Equity            70        183         97         32        107
    Other
     Consumer       1,417      1,433      1,533      1,142      1,180
    Lease
     Financing          -         30         32         57          -
----------------------------------------------------------------------
  Total
   Consumer         2,091      2,033      4,250      1,929      1,882
----------------------------------------------------------------------
Total Accruing
 Loans Past Due
 90 Days or
 More              $4,363     $2,085     $5,003     $2,641     $3,291
======================================================================

Total Loans and
 Leases        $6,015,790 $5,986,930 $5,815,575 $5,787,314 $5,714,996
======================================================================

Ratio of Non-
 Accrual Loans
 to Total Loans      0.21%      0.23%      0.27%      0.28%      0.41%
----------------------------------------------------------------------

Ratio of Non-
 Performing
 Assets to
 Total Loans,
 Foreclosed
 Real Estate
 and Other
 Investments         0.22%      0.23%      0.27%      0.37%      0.49%
----------------------------------------------------------------------

Ratio of Non-
 Performing
 Assets and
 Accruing Loans
 Past Due 90
 Days or More
 to Total Loans      0.29%      0.27%      0.36%      0.41%      0.55%
----------------------------------------------------------------------

Quarter to
 Quarter
 Changes in
 Non-Performing
 Assets
Balance at
 Beginning of
 Quarter          $13,859    $15,977    $21,160    $27,866    $31,724
  Additions         2,796      5,164      2,094      3,909      3,293
  Reductions
   Payments        (2,202)    (6,435)    (1,386)    (4,232)    (4,555)
    Return to
     Accrual         (698)      (456)    (1,122)    (2,700)    (1,444)
    Sales of
     Foreclosed
     Assets          (129)      (206)      (682)      (147)      (310)
    Charge-
     offs/
     Write-
     downs           (261)      (185)       (88)    (3,536)      (842)
    Transfer to
     Premises           -          -     (3,999)         -          -
----------------------------------------------------------------------
  Total
   Reductions      (3,290)    (7,282)    (7,277)   (10,615)    (7,151)
----------------------------------------------------------------------
Balance at End
 of Quarter       $13,365    $13,859    $15,977    $21,160    $27,866
======================================================================


Bank of Hawaii Corporation and Subsidiaries
Consolidated Reserve for Credit Losses (Unaudited)            Table 10
----------------------------------------------------------------------
                                           Three Months Ended
                                   March 31,    Dec. 31,   March 31,
(dollars in thousands)               2005        2004        2004
----------------------------------------------------------------------

Balance at Beginning of Period       $113,596    $124,651    $129,080
Loans Charged-Off
  Commercial
    Commercial and Industrial             574         465         387
    Commercial Mortgage                     -           -         574
    Lease Financing                         -         774         228
  Consumer
    Residential Mortgage                  315         128         145
    Purchased Home Equity                 292         343          90
    Other Consumer                      4,582       4,903       4,655
    Lease Financing                        34          47          36
----------------------------------------------------------------------
Total Loans Charged-Off                 5,797       6,660       6,115
----------------------------------------------------------------------
Recoveries on Loans Previously
 Charged-Off
  Commercial
    Commercial and Industrial             541         542         980
    Commercial Mortgage                    62         119         689
    Construction                            -           -         435
    Lease Financing                        32           1          15
  Consumer
    Residential Mortgage                  106         109         294
    Home Equity                            25           5          39
    Purchased Home Equity                  35          16           -
    Other Consumer                      1,287       1,267       1,663
    Lease Financing                        19          23          55
  Foreign                                   -          23          50
----------------------------------------------------------------------
Total Recoveries on Loans
 Previously Charged-Off                 2,107       2,105       4,220
----------------------------------------------------------------------
Net Loan Charge-Offs                   (3,690)     (4,555)     (1,895)
Provision for Loan and Lease
 Losses                                     -      (6,500)          -
----------------------------------------------------------------------
Balance at End of Period (1)         $109,906    $113,596    $127,185
======================================================================

Components
  Allowance for Loan and Lease
   Losses                            $105,006    $106,796    $127,185
  Reserve for Unfunded Commitments
   (2)                                  4,900       6,800           -
----------------------------------------------------------------------
Total Reserve for Credit Losses      $109,906    $113,596    $127,185
======================================================================

Average Loans Outstanding          $6,000,572  $5,834,379  $5,742,368
======================================================================

Ratio of Net Loan Charge-Offs to
 Average Loans Outstanding
 (annualized)                            0.25%       0.31%       0.13%
Ratio of Allowance for Loan and
 Lease Losses to Loans and Leases
 Outstanding (2)                         1.75%       1.78%       2.23%

(1) Included in this analysis is activity related to the Company's
    reserve for unfunded commitments, which is separately recorded in
    other liabilities in the Consolidated Statements of Condition.

(2) The reclassification of the reserve for unfunded commitments to
    other liabilities occurred in the fourth quarter of 2004 on a
    prospective basis. Thus, March 31, 2004 allowance for loan and
    lease losses and reserve for unfunded commitments were reported
    together. At March 31, 2004, the reserve for unfunded commitments
    was $6.2 million.


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

Three Months Ended
 March 31, 2005
Net Interest
 Income          $52,351    $34,562    $2,888    $10,857     $100,658
Provision for
 Loan and
 Lease Losses      3,485        416         -     (3,901)           -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision
 for Loan and
 Lease Losses     48,866     34,146     2,888     14,758      100,658
Non-Interest
 Income           24,242     11,531    14,626      1,916       52,315
----------------------------------------------------------------------
                  73,108     45,677    17,514     16,674      152,973
Non-Interest
 Expense         (43,049)   (22,560)  (13,219)    (2,035)     (80,863)
----------------------------------------------------------------------
Income Before
 Income Taxes     30,059     23,117     4,295     14,639       72,110
Provision for
 Income Taxes    (11,122)    (8,598)   (1,590)    (5,278)     (26,588)
----------------------------------------------------------------------
Allocated Net
 Income           18,937     14,519     2,705      9,361       45,522
----------------------------------------------------------------------
Allowance
 Funding
 Value              (162)      (602)       (6)       770            -
GAAP
 Provision         3,485        416         -     (3,901)           -
Economic
 Provision        (3,505)    (2,458)      (90)        (2)      (6,055)
Tax Effect of
 Adjustments          67        978        36      1,159        2,240
----------------------------------------------------------------------
Income Before
 Capital
 Charge           18,822     12,853     2,645      7,387       41,707
Capital
 Charge           (5,456)    (4,636)   (1,341)   (10,027)     (21,460)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital
 Charge
 (NIACC)         $13,366     $8,217    $1,304    $(2,640)     $20,247
======================================================================

RAROC (ROE
 for the
 Company)             38%        31%       22%        20%          24%
======================================================================

Total Assets
 at March 31,
 2005         $3,796,459 $2,390,204  $137,698 $3,583,669   $9,908,030
======================================================================


Three Months Ended
 March 31, 2004 (1)
Net Interest
 Income          $50,157    $34,019    $2,812     $9,043      $96,031
Provision for
 Loan and
 Lease Losses      2,747       (253)       49     (2,543)           -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision
 for Loan and
 Lease Losses     47,410     34,272     2,763     11,586       96,031
Non-Interest
 Income           21,016     10,432    14,442      2,952       48,842
----------------------------------------------------------------------
                  68,426     44,704    17,205     14,538      144,873
Non-Interest
 Expense         (43,217)   (23,144)  (13,030)    (3,631)     (83,022)
----------------------------------------------------------------------
Income Before
 Income Taxes     25,209     21,560     4,175     10,907       61,851
Provision for
 Income Taxes     (9,327)    (7,958)   (1,545)    (3,222)     (22,052)
----------------------------------------------------------------------
Allocated Net
 Income           15,882     13,602     2,630      7,685       39,799
----------------------------------------------------------------------
Allowance
 Funding
 Value              (128)      (737)       (8)       873            -
GAAP
 Provision         2,747       (253)       49     (2,543)           -
Economic
 Provision        (3,396)    (2,777)      (94)        (4)      (6,271)
Tax Effect of
 Adjustments         287      1,394        20        620        2,321
----------------------------------------------------------------------
Income Before
 Capital
 Charge           15,392     11,229     2,597      6,631       35,849
Capital
 Charge           (5,771)    (5,266)   (1,283)    (9,720)     (22,040)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital
 Charge
 (NIACC)          $9,621     $5,963    $1,314    $(3,089)     $13,809
======================================================================

RAROC (ROE
 for the
 Company)             29%        24%       22%        25%          20%
======================================================================

Total Assets
 at March 31,
 2004         $3,694,709 $2,295,748  $116,791 $3,906,194  $10,013,442
======================================================================

(1) Certain 2004 information has been reclassified to conform to 2005
    presentation.


Bank of Hawaii Corporation and Subsidiaries
Quarterly Summary of Selected Consolidated Financial Data
 (Unaudited)                                                  Table 12
----------------------------------------------------------------------
(dollars in                      Three Months Ended
thousands
except per      March 31,   Dec. 31,  Sept. 30,   June 30,   March 31,
share amounts)      2005       2004     2004(1)    2004(1)     2004(1)
----------------------------------------------------------------------

Quarterly
 Operating
 Results
Interest
 Income
  Interest and
   Fees on
   Loans and
   Leases        $86,467    $84,100    $82,079    $80,346     $81,428
  Income on
   Investment
   Securities
   - Available
   for Sale       27,319     26,394     24,543     21,745      20,846
  Income on
   Investment
   Securities
   - Held to
   Maturity        5,825      6,147      6,370      6,711       6,976
  Deposits            23        107        496      1,646       1,231
  Funds Sold          75        356        108        177         417
  Other              449        267        801        865         858
----------------------------------------------------------------------
Total Interest
 Income          120,158    117,371    114,397    111,490     111,756
----------------------------------------------------------------------
Interest
 Expense
  Deposits        11,604      9,993      8,990      8,560       9,200
  Securities
   Sold Under
   Agreements
   to
   Repurchase      3,325      3,120      2,085      2,222       1,926
  Funds
   Purchased         733        395        683        506         231
  Short-Term
   Borrowings         32         39         15         13          15
  Long-Term
   Debt            3,806      3,893      3,845      4,340       4,353
----------------------------------------------------------------------
Total Interest
 Expense          19,500     17,440     15,618     15,641      15,725
----------------------------------------------------------------------
Net Interest
 Income          100,658     99,931     98,779     95,849      96,031
Provision for
 Loan and
 Lease Losses          -     (6,500)         -     (3,500)          -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and
 Lease Losses    100,658    106,431     98,779     99,349      96,031
----------------------------------------------------------------------
Non-Interest
 Income
  Trust and
   Asset
   Management     14,622     13,934     12,672     12,995      13,864
  Mortgage
   Banking         2,590      1,516      1,711      2,808       1,977
  Service
   Charges on
   Deposit
   Accounts       10,179     10,155      9,472      9,540       9,950
  Fees,
   Exchange,
   and Other
   Service
   Charges        13,836     13,684     13,741     14,243      13,239
  Investment
   Securities
   Gains
   (Losses)            -       (757)         -        (37)          -
  Insurance        5,788      4,234      5,423      4,926       4,658
  Other            5,300      5,584     10,035     10,373       5,154
----------------------------------------------------------------------
Total Non-
 Interest
 Income           52,315     48,350     53,054     54,848      48,842
----------------------------------------------------------------------
Non-Interest
 Expense
  Salaries and
   Benefits       44,769     45,043     46,566     46,689      46,001
  Net
   Occupancy
   Expense         9,545      9,606      9,812      9,543       9,386
  Net
   Equipment
   Expense         5,471      6,316      5,847      5,799       5,964
  Other           21,078     21,138     21,965     23,094      21,671
----------------------------------------------------------------------
Total Non-
 Interest
 Expense          80,863     82,103     84,190     85,125      83,022
----------------------------------------------------------------------
Income Before
 Income Taxes     72,110     72,678     67,643     69,072      61,851
Provision for
 Income Taxes     26,588     26,437     24,576     24,840      22,052
----------------------------------------------------------------------
Net Income       $45,522    $46,241    $43,067    $44,232     $39,799
======================================================================

Basic Earnings
 Per Share         $0.85      $0.86      $0.82      $0.84       $0.73
Diluted
 Earnings Per
 Share             $0.83      $0.82      $0.78      $0.79       $0.69

Balance Sheet
 Totals
Total Assets  $9,908,030 $9,766,191 $9,594,809 $9,688,769 $10,013,442
Net Loans      5,910,784  5,880,134  5,690,924  5,662,410   5,587,811
Total Deposits 7,760,662  7,564,667  7,413,240  7,469,288   7,363,922
Total
 Shareholders'
 Equity          716,656    814,834    756,707    699,438     785,768

Performance
 Ratios
Net Income to
 Average Total
 Assets (ROA)       1.88%      1.89%      1.77%      1.80%       1.65%
Net Income to
 Average
 Shareholders'
 Equity (ROE)      23.66      23.63      23.42      24.28       19.98
Efficiency
 Ratio (2)         52.86      55.37      55.45      56.49       57.31

(1) Certain 2004 information has been reclassified to conform to 2005
    presentation.

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

SOURCE: Bank of Hawaii Corporation

Bank of Hawaii Corporation
Stafford Kiguchi, 808-537-8580 (Media Inquiries)
Mobile: 808-265-6367
skiguchi@boh.com
Cindy Wyrick, 808-537-8430 (Investor/Analyst Inquiries)
cwyrick@boh.com