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Bank of Hawaii Corporation First Quarter 2006 Financial Results

Click here for a printable version of the First Quarter 2006 Financial Results.

HONOLULU--(BUSINESS WIRE)--April 24, 2006--Bank of Hawaii Corporation (NYSE:BOH):

  • Diluted Earnings Per Share $0.87
  • Net Income $45.4 Million
  • Board of Directors Declares Dividend of $0.37 Per Share

Bank of Hawaii Corporation (NYSE:BOH) today reported diluted earnings per share of $0.87 for the first quarter of 2006, an increase from diluted earnings per share of $0.83 in the same quarter last year and an increase from diluted earnings per share of $0.86 in the previous quarter. Net income for the first quarter of 2006 was $45.4 million, essentially unchanged from $45.5 million in the first quarter of 2005, and up from $44.8 million in the fourth quarter of 2005.

The return on average assets for the first quarter of 2006 was 1.82 percent compared to 1.88 percent for the first quarter of 2005 and 1.76 percent in the fourth quarter of 2005. The return on average equity for the first quarter of 2006 was 26.13 percent, up from 23.66 percent for the first quarter of 2005 and up from 25.19 percent in the fourth quarter of 2005.

"Bank of Hawaii had a good start in 2006 with solid performance in the first quarter," said Allan R. Landon, Chairman and CEO. "We've had good loan origination volumes, our deposits continue to be strong and the Hawaii economy remains solid. We are optimistic about achieving our goals for the remainder of the year."

Results for the first quarter of 2006 included a provision for credit losses of $2.8 million compared to $1.6 million in the fourth quarter of 2005. The Company did not record a provision for credit losses during the first quarter of 2005.

Financial Highlights

The net interest margin for the first quarter of 2006 was stable at 4.41 percent compared to previous quarters. Net interest income, on a taxable equivalent basis, for the first quarter of 2006 was $102.2 million, up $1.5 million from $100.7 million in the first quarter last year and down $1.3 million from $103.5 million in the fourth quarter of 2005. The increase in net interest income compared to the same quarter last year was primarily due to an increase in the yield on earning assets which was partially offset by a rise in deposit and short term borrowing rates. The decrease in net interest income compared to the previous quarter was largely due to fewer days in the first quarter and a shift in the funding mix. An analysis of the change in net interest income is included in Table 6.

As previously mentioned, the provision for credit losses during the first quarter of 2006 was $2.8 million and equaled net charge-offs for the quarter.

Non-interest income was $52.6 million for the first quarter of 2006, an increase of $0.3 million compared to non-interest income of $52.3 million in the same quarter last year and an increase of $1.8 million compared to non-interest income of $50.8 million in the fourth quarter of 2005.

Non-interest expense was $80.8 million in the first quarter of 2006, essentially flat with non-interest expense of $80.9 million in the first quarter of 2005 and a decrease of $2.4 million from non-interest expense of $83.2 million in the previous quarter. Non-interest expense in the first quarter of 2005 included a gain of $1.1 million on the sale of a foreclosed property largely offset by a goodwill impairment charge of $1.3 million related to the Company's insurance business. The decrease from the fourth quarter was largely due to a reduction in legal expenses which was partially offset by an accrual for legal claims. An analysis of salaries and benefit expenses is included in Table 7.

The efficiency ratio for the first quarter of 2006 was 52.22 percent, an improvement from 52.86 percent in the same quarter last year and from 53.92 percent in the previous quarter.

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. Business segment performance details are summarized in Table 11.

Asset Quality

Non-performing assets declined to $5.9 million and the ratio of non-performing assets to total loans and leases, foreclosed real estate, and other investments decreased to 0.09 percent at March 31, 2006. Non-accrual loans and leases were $5.2 million at the end of the first quarter of 2006, resulting in a decrease in the ratio of non-accrual loans and leases as a percentage of total loans and leases to 0.08 percent at March 31, 2006. An analysis of asset quality is presented in Table 9.

Net charge-offs for the first quarter of 2006 were $2.8 million, or 0.18 percent annualized, of total average loans and leases compared to net charge-offs of $3.7 million, or 0.25 percent annualized, of total average loans and leases in the same quarter last year. Net charge-offs in the fourth quarter of 2005 were $1.6 million, including a recovery of $3.0 million, or 0.10 percent annualized, of total average loans and leases. Details of the reserve for credit losses are summarized in Table 10.

The allowance for loan and lease losses was $91.1 million at March 31, 2006, down from $105.0 at March 31, 2005 and essentially unchanged from December 31, 2005. The ratio of the allowance for loan and lease losses to total loans and leases was 1.46 percent at March 31, 2006, down from 1.75 percent at March 31, 2005 and down from 1.48 percent at December 31, 2005.

Other Financial Highlights

Total assets were $10.53 billion at March 31, 2006, up $620 million from $9.91 billion at March 31, 2005 and up $341 million from $10.19 billion at December 31, 2005. Total loans and leases were $6.25 billion at March 31, 2006, up $230 million from $6.02 billion at March 31, 2005 and up $78 million from $6.17 billion at December 31, 2005. Loan and lease portfolio balances are included in Table 8.

Total deposits at March 31, 2006 were $8.15 billion, up $386 million from $7.76 billion at March 31, 2005 and up $240 million from $7.91 billion at December 31, 2005.

During the first quarter of 2006, Bank of Hawaii Corporation repurchased 0.7 million shares of common stock at a total cost of $34.7 million under its share repurchase program. The average cost was $53.22 per share repurchased. From the beginning of the repurchase program in July 2001 through March 31, 2006, the Company repurchased a total of 40.6 million shares and returned nearly $1.37 billion to the shareholders at an average cost of $33.63 per share. From April 1, 2006 through April 21, 2006, the Company repurchased an additional 130 thousand shares of common stock at an average cost of $53.18 per share. Remaining buyback authority under the share repurchase program was $76.4 million at April 21, 2006.

At March 31, 2006 the Tier 1 leverage ratio was 7.19 percent compared to 7.42 percent at March 31, 2005 and 7.14 percent at December 31, 2005.

The Company's Board of Directors has declared a quarterly cash dividend of $0.37 per share on the Company's outstanding shares. The dividend will be payable on June 14, 2006 to shareholders of record at the close of business on May 31, 2006.

Financial Outlook

Bank of Hawaii Corporation's previous earnings estimate of net income for the full year of 2006 remains unchanged at approximately $187 million, including a $17 million provision for credit losses. An analysis of credit quality is performed quarterly to determine the adequacy of the reserve for credit losses. This analysis determines the timing and amount of the provision for credit losses.

Conference Call Information

The Company will review its first quarter 2006 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) 510-9661 in the United States or (617) 614-3452 for international callers. No passcode is required to access the call. A replay will be available for one week beginning Monday, April 24, 2006 by calling (888) 286-8010 in the United States or (617) 801-6888 for international callers and entering the number 67899656 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 bank holding company providing a broad range of financial products and services to customers in Hawaii and the Pacific Islands (Guam, nearby islands and American Samoa). 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 contains, and other statements made by the Company may contain, forward-looking statements concerning, among other things, the economic and business environment in our service area and elsewhere, credit quality, 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, taxing authority interpretations, legislation in Hawaii and the other markets we serve, or the timing and interpretation of proposed accounting standards; 2) changes in our credit quality or risk profile that may increase or decrease the required level of reserve for credit losses; 3) changes in market interest rates that may affect our credit markets and ability to maintain our net interest margin; 4) unpredictable costs and other consequences of legal, tax or regulatory matters involving the Company; 5) changes to the amount and timing of our proposed equity repurchases; 6) real or threatened acts of war or terrorist activity affecting business conditions; and 7) adverse weather, public health and other natural conditions impacting the Company and its customers' operations. For further discussion of these and other risks and uncertainties that could cause actual results to differ materially from such forward-looking statements, please refer to the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2005 filed with the U.S. Securities and Exchange Commission. We do not undertake an obligation to update forward-looking statements to reflect later events or circumstances.

Bank of Hawaii Corporation and Subsidiaries
Highlights (Unaudited)                                        Table 1
----------------------------------------------------------------------
                                         Three Months Ended
                                March 31,   December 31,  March 31,
(dollars in thousands
 except per share
 amounts)                          2006         2005       2005 (1)
----------------------------------------------------------------------
For the Period:
Interest Income                $   135,403  $   132,945  $   120,158
Net Interest Income                102,202      103,456      100,658
Net Income                          45,350       44,781       45,522
Basic Earnings Per
 Share                                0.89         0.88         0.85
Diluted Earnings Per
 Share                                0.87         0.86         0.83
Dividends Declared Per
 Share                                0.37         0.37         0.33

Net Income to Average
 Total Assets (ROA)                   1.82 %       1.76 %       1.88 %
Net Income to Average
 Shareholders' Equity
 (ROE)                               26.13        25.19        23.66
Net Interest Margin (2)               4.41         4.42         4.42
Efficiency Ratio (3)                 52.22        53.92        52.86

Average Assets                 $10,091,665  $10,079,483  $ 9,845,765
Average Loans and
 Leases                          6,181,697    6,177,424    6,000,572
Average Deposits                 7,742,623    7,795,381    7,687,798
Average Shareholders'
 Equity                            703,856      705,428      780,271
Average Equity to
 Average Assets                       6.97 %       7.00 %       7.92 %

Market Price Per Share
 of Common Stock:      Closing $     53.31  $     51.54  $     45.26
                       High          55.15        53.19        50.95
                       Low           51.40        47.21        44.33

                                  March 31,  December 31,   March 31,
                                   2006         2005         2005
----------------------------------------------------------------------
At Period End:
Net Loans and Leases           $ 6,155,061  $ 6,077,446  $ 5,910,784
Total Assets                    10,528,049   10,187,038    9,908,030
Deposits                         8,147,101    7,907,468    7,760,662
Long-Term Debt                     242,730      242,703      242,656
Shareholders' Equity               681,078      693,352      716,656

Ratio of Allowance for Loan and
 Lease Losses to Loans and
 Leases Outstanding                   1.46 %       1.48 %       1.75 %
Dividend Payout
 Ratio (4)                           41.57        42.05        38.82
Leverage Capital Ratio                7.19         7.14         7.42

Book Value Per Common
 Share                         $     13.36  $     13.52  $     13.57

Full-Time Equivalent
 Employees                           2,561        2,585        2,593
Branches and Offices                    85           85           87

(1)Certain prior period information has been reclassified to conform
 to current presentation.
(2) The net interest margin is defined as net interest income, on a
 fully-taxable equivalent basis, as a percentage of average earning
 assets.
(3) The efficiency ratio is defined as non-interest expense divided by
 total revenue (net interest income and non-interest income).
(4) Dividend payout ratio is defined as dividends declared per share
 divided by basic earnings per share for the quarter.



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income                            Table 2
 (Unaudited)
----------------------------------------------------------------------
                                           Three Months Ended
                                   March 31,  December 31, March 31,
(dollars in thousands except per
 share amounts)                      2006        2005        2005
----------------------------------------------------------------------
Interest Income
   Interest and Fees on Loans and
    Leases                        $    99,371 $    97,697 $    86,467
   Income on Investment Securities
    - Available for Sale               30,835      29,820      27,319
   Income on Investment Securities
    - Held to Maturity                  4,757       4,899       5,825
   Deposits                                43         103          23
   Funds Sold                             125         154          75
   Other                                  272         272         449
----------------------------------------------------------------------
Total Interest Income                 135,403     132,945     120,158
----------------------------------------------------------------------
Interest Expense
   Deposits                            19,633      17,479      11,604
   Securities Sold Under
    Agreements to Repurchase            7,890       6,504       3,325
   Funds Purchased                      1,893       1,730         733
   Short-Term Borrowings                   57          61          32
   Long-Term Debt                       3,728       3,715       3,806
----------------------------------------------------------------------
Total Interest Expense                 33,201      29,489      19,500
----------------------------------------------------------------------
Net Interest Income                   102,202     103,456     100,658
Provision for Credit Losses             2,761       1,588           -
----------------------------------------------------------------------
Net Interest Income After
 Provision for Credit Losses           99,441     101,868     100,658
----------------------------------------------------------------------
Non-Interest Income
   Trust and Asset Management          14,848      14,098      14,622
   Mortgage Banking                     2,987       2,597       2,590
   Service Charges on Deposit
    Accounts                           10,132      10,151      10,179
   Fees, Exchange, and Other
    Service Charges                    14,767      15,147      13,836
   Investment Securities Gains
    (Losses)                                -          (4)          -
   Insurance                            5,019       4,201       5,788
   Other                                4,819       4,619       5,300
----------------------------------------------------------------------
Total Non-Interest Income              52,572      50,809      52,315
----------------------------------------------------------------------
Non-Interest Expense
   Salaries and Benefits               45,786      43,319      44,769
   Net Occupancy                        9,643       9,643       9,545
   Net Equipment                        5,028       5,358       5,471
   Professional Fees                      438       4,057       3,051
   Other                               19,923      20,802      18,027
----------------------------------------------------------------------
Total Non-Interest Expense             80,818      83,179      80,863
----------------------------------------------------------------------
Income Before Income Taxes             71,195      69,498      72,110
Provision for Income Taxes             25,845      24,717      26,588
----------------------------------------------------------------------
Net Income                        $    45,350 $    44,781 $    45,522
======================================================================
Basic Earnings Per Share          $      0.89 $      0.88 $      0.85
Diluted Earnings Per Share        $      0.87 $      0.86 $      0.83
Dividends Declared Per Share      $      0.37 $      0.37 $      0.33
Basic Weighted Average Shares      50,785,244  50,743,172  53,401,787
Diluted Weighted Average Shares    52,106,954  52,042,845  55,020,050
======================================================================



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of                                     Table 3
 Condition (Unaudited)
----------------------------------------------------------------------
                                   March 31,  December 31, March 31,
(dollars in thousands)                2006        2005        2005
----------------------------------------------------------------------
Assets
Interest-Bearing Deposits         $     5,171 $     4,893 $     5,897
Funds Sold                            328,000           -      70,000
Investment Securities - Available
 for Sale
   Held in Portfolio                2,268,644   2,333,417   2,495,447
   Pledged as Collateral              280,560     204,798           -
Investment Securities - Held to
 Maturity (Fair Value of $417,938,
 $442,989, and $547,764)              433,021     454,240     558,834
Loans Held for Sale                    22,754      17,915      20,897
Loans and Leases                    6,246,125   6,168,536   6,015,790
   Allowance for Loan and Lease
    Losses                            (91,064)    (91,090)   (105,006)
----------------------------------------------------------------------
     Net Loans and Leases           6,155,061   6,077,446   5,910,784
----------------------------------------------------------------------
Total Earning Assets                9,493,211   9,092,709   9,061,859
----------------------------------------------------------------------
Cash and Non-Interest-Bearing
 Deposits                             422,436     493,825     306,852
Premises and Equipment                143,392     133,913     141,615
Customers' Acceptance Liability           729       1,056       1,054
Accrued Interest Receivable            44,149      43,033      38,427
Foreclosed Real Estate                    358         358         183
Mortgage Servicing Rights              18,468      18,010      18,510
Goodwill                               34,959      34,959      34,959
Other Assets                          370,347     369,175     304,571
----------------------------------------------------------------------
Total Assets                      $10,528,049 $10,187,038 $ 9,908,030
======================================================================
Liabilities
Deposits
   Non-Interest-Bearing Demand    $ 2,377,355 $ 2,134,916 $ 1,943,616
   Interest-Bearing Demand          1,674,294   1,678,454   1,702,158
   Savings                          2,716,572   2,819,258   2,968,624
   Time                             1,378,880   1,274,840   1,146,264
----------------------------------------------------------------------
Total Deposits                      8,147,101   7,907,468   7,760,662
----------------------------------------------------------------------
Funds Purchased                        55,930     268,110      76,100
Short-Term Borrowings                   2,025       9,447       8,376
Securities Sold Under Agreements
 to Repurchase                        957,166     609,380     664,206
Long-Term Debt                        242,730     242,703     242,656
Banker's Acceptances Outstanding          729       1,056       1,054
Retirement Benefits Payable            71,708      71,116      66,233
Accrued Interest Payable               11,882      10,910       7,669
Taxes Payable and Deferred Taxes      273,088     269,094     274,164
Other Liabilities                      84,612     104,402      90,254
----------------------------------------------------------------------
Total Liabilities                   9,846,971   9,493,686   9,191,374
----------------------------------------------------------------------
Shareholders' Equity
Common Stock ($.01 par value);
 authorized 500,000,000 shares;
 issued / outstanding: March 2006
  - 56,858,558 / 50,970,829,
  December 2005 - 56,827,483 /
  51,276,286, March 2005 -
  81,711,752 / 52,826,818                 566         565         815
Capital Surplus                       467,678     473,338     453,227
Accumulated Other Comprehensive
 Income (Loss)                        (65,668)    (47,818)    (33,469)
Retained Earnings                     565,702     546,591   1,310,070
Deferred Stock Grants                       -     (11,080)     (8,145)

Treasury Stock, at Cost (Shares:
 March 2006 - 5,887,729, December
 2005 - 5,551,197, March 2005 -
 28,884,934)                         (287,200)   (268,244) (1,005,842)
----------------------------------------------------------------------
Total Shareholders' Equity            681,078     693,352     716,656
----------------------------------------------------------------------
Total Liabilities and
 Shareholders' Equity             $10,528,049 $10,187,038 $ 9,908,030
======================================================================



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, 2005   $ 693,352 $    565 $ 473,338 $ (47,818)
Comprehensive Income:
 Net Income                       45,350        -         -         -
 Other Comprehensive Income,
  Net of Tax:
  Change in Unrealized Gains
  and Losses on Investment
  Securities                     (17,850)       -         -   (17,850)
 Total Comprehensive Income
Common Stock Issued under Stock
 Plans and Related Tax Benefits
 (393,036 shares)                 16,014        1    (5,660)        -
Treasury Stock Purchased
 (697,974 shares)                (36,848)       -         -         -
Cash Dividends Paid              (18,940)       -         -         -
------------------------------- --------- -------- --------- ---------
Balance at March 31, 2006      $ 681,078 $    566 $ 467,678 $ (65,668)
=============================== ========= ======== ========= =========
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)
=============================== ========= ======== ========= =========


                                        Deferred              Compre-
                              Retained    Stock    Treasury   hensive
(dollars in thousands)        Earnings   Grants     Stock     Income
----------------------------------------------------------------------
Balance at December 31, 2005 $  546,591 $(11,080)$  (268,244)
Comprehensive Income:
 Net Income                      45,350        -           - $ 45,350
Other Comprehensive Income,
 Net of Tax:
  Change in Unrealized Gains
   and Losses on Investment
   Securities                         -        -           -  (17,850)
                                                              --------
 Total Comprehensive Income                                  $ 27,500
                                                              ========
Common Stock Issued under
 Stock Plans and Related Tax
 Benefits (393,036 shares)       (7,299)  11,080      17,892
Treasury Stock Purchased
 (697,974 shares)                     -        -     (36,848)
Cash Dividends Paid             (18,940)       -           -
----------------------------- ---------- -------- -----------
Balance at March 31, 2006    $  565,702 $      - $  (287,200)
============================= ========== ======== ===========
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)
============================= ========== ======== ===========



Bank of Hawaii Corporation and Subsidiaries
Consolidated Average Balances and Interest Rates - Taxable Equivalent
 Basis (Unaudited)                                             Table 5
----------------------------------------------------------------------
                                               Three Months Ended
                                                 March 31, 2006
                                            Average   Income/  Yield/
(dollars in millions)                       Balance   Expense   Rate
----------------------------------------------------------------------
Earning Assets
Interest-Bearing Deposits                 $      5.3 $      -    3.30%
Funds Sold                                      11.0      0.1    4.61
Investment Securities
 Available for Sale                          2,589.4     30.9    4.78
 Held to Maturity                              443.7      4.7    4.29
Loans Held for Sale                             12.0      0.2    6.02
Loans and Leases (2)
 Commercial and Industrial                     931.9     16.2    7.05
 Construction                                  142.6      2.8    8.03
 Commercial Mortgage                           571.9      9.2    6.50
 Residential Mortgage                        2,436.4     35.7    5.85
 Other Revolving Credit and Installment        725.7     15.9    8.89
 Home Equity                                   880.7     15.2    7.01
 Lease Financing                               492.5      4.2    3.42
----------------------------------------------------------------------
Total Loans and Leases                       6,181.7     99.2    6.47
----------------------------------------------------------------------
Other                                           79.4      0.3    1.39
----------------------------------------------------------------------
Total Earning Assets (3)                     9,322.5    135.4    5.85
----------------------------------------------------------------------
Cash and Non-Interest-Bearing Deposits         331.8
Other Assets                                   437.4
                                           ----------
Total Assets                              $ 10,091.7
                                           ==========

Interest-Bearing Liabilities
Interest-Bearing Deposits
 Demand                                   $  1,654.7      3.3    0.82
 Savings                                     2,756.2      7.2    1.06
 Time                                        1,309.7      9.1    2.82
----------------------------------------------------------------------
Total Interest-Bearing Deposits              5,720.6     19.6    1.39
----------------------------------------------------------------------
Short-Term Borrowings                          178.0      2.0    4.44
Securities Sold Under Agreements to
 Repurchase                                    772.0      7.9    4.15
Long-Term Debt                                 242.7      3.7    6.16
----------------------------------------------------------------------
Total Interest-Bearing Liabilities           6,913.3     33.2    1.95
----------------------------------------------------------------------
Net Interest Income                                  $  102.2
                                                      ========
 Interest Rate Spread                                            3.90%
 Net Interest Margin                                             4.41%
Non-Interest-Bearing Demand Deposits         2,022.0
Other Liabilities                              452.5
Shareholders' Equity                           703.9
                                           ----------         --------
Total Liabilities and Shareholders'
 Equity                                   $ 10,091.7
                                           ==========         ========


                                              Three Months Ended
                                            December 31, 2005 (1)
                                          Average    Income/ Yield/
(dollars in millions)                     Balance    Expense  Rate
----------------------------------------------------------------------
Earning Assets
Interest-Bearing Deposits               $      11.2 $    0.1   3.64  %
Funds Sold                                     15.1      0.1   4.05
Investment Securities
 Available for Sale                         2,573.2     29.9   4.64
 Held to Maturity                             469.9      4.9   4.17
Loans Held for Sale                            12.8      0.2   5.67
Loans and Leases (2)
 Commercial and Industrial                    943.7     16.0   6.74
 Construction                                 161.3      2.9   7.22
 Commercial Mortgage                          565.7      9.0   6.33
 Residential Mortgage                       2,406.3     34.7   5.77
 Other Revolving Credit and Installment       738.8     16.2   8.70
 Home Equity                                  868.1     14.3   6.53
 Lease Financing                              493.5      4.4   3.53
----------------------------------------------------------------------
Total Loans and Leases                      6,177.4     97.5   6.28
----------------------------------------------------------------------
Other                                          79.4      0.3   1.36
----------------------------------------------------------------------
Total Earning Assets (3)                    9,339.0    133.0   5.67
----------------------------------------------------------------------
Cash and Non-Interest-Bearing Deposits        314.7
Other Assets                                  425.8
                                         -----------
Total Assets                            $  10,079.5
                                         ===========

Interest-Bearing Liabilities
Interest-Bearing Deposits
 Demand                                 $   1,650.9      3.1   0.75
 Savings                                    2,882.4      6.1   0.83
 Time                                       1,273.6      8.3   2.59
----------------------------------------------------------------------
Total Interest-Bearing Deposits             5,806.9     17.5   1.19
----------------------------------------------------------------------
Short-Term Borrowings                         178.1      1.8   3.99
Securities Sold Under Agreements to
 Repurchase                                   710.5      6.5   3.63
Long-Term Debt                                242.7      3.7   6.11
----------------------------------------------------------------------
Total Interest-Bearing Liabilities          6,938.2     29.5   1.69
----------------------------------------------------------------------
Net Interest Income                                 $  103.5
                                                     ========
 Interest Rate Spread                                          3.98  %
 Net Interest Margin                               %           4.42  %
Non-Interest-Bearing Demand Deposits        1,988.5
Other Liabilities                             447.4
Shareholders' Equity                          705.4
                                         -----------                --
Total Liabilities and Shareholders'
 Equity                                 $  10,079.5
                                         ===========                ==


                                               Three Months Ended
                                               March 31, 2005 (1)
                                            Average   Income/ Yield/
(dollars in millions)                       Balance   Expense  Rate
----------------------------------------------------------------------
Earning Assets
Interest-Bearing Deposits                 $      4.8  $    -    1.93 %
Funds Sold                                      12.6     0.1    2.40
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                     918.8    13.4    5.89
 Construction                                  106.7     1.4    5.38
 Commercial Mortgage                           605.9     8.5    5.73
 Residential Mortgage                        2,333.8    32.6    5.59
 Other Revolving Credit and Installment        738.0    15.1    8.27
 Home Equity                                   795.6    10.5    5.34
 Lease Financing                               501.8     4.8    3.82
----------------------------------------------------------------------
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                          128.6     0.8    2.41
Securities Sold Under Agreements to
 Repurchase                                    577.6     3.3    2.33
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                                %           4.42 %
Non-Interest-Bearing Demand Deposits         1,982.7
Other Liabilities                              422.8
Shareholders' Equity                           780.3
                                           ----------
Total Liabilities and Shareholders'
 Equity                                   $  9,845.8
                                           ==========

(1) Certain prior period information has been reclassified to conform
 to current presentation.
(2) Non-performing loans and leases are included in the respective
 average loan and lease balances.  Income, if any, on such loans and
 leases is recognized on a cash basis.
(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, 2006
                                      compared to December 31, 2005
(dollars in millions)             Volume (1) Rate (1) Time (1) Total
----------------------------------------------------------------------
Change in Interest Income:
Interest-Bearing Deposits          $   (0.1) $     -   $    -   $(0.1)
Investment Securities
   Available for Sale                   0.2      0.9     (0.1)    1.0
   Held to Maturity                    (0.3)     0.1        -    (0.2)
Loans and Leases
   Commercial and Industrial           (0.2)     0.7     (0.3)    0.2
   Construction                        (0.4)     0.3        -    (0.1)
   Commercial Mortgage                  0.1      0.3     (0.2)    0.2
   Residential Mortgage                 0.5      0.5        -     1.0
   Other Revolving Credit and
    Installment                        (0.3)     0.4     (0.4)   (0.3)
   Home Equity                          0.2      1.0     (0.3)    0.9
   Lease Financing                        -     (0.2)       -    (0.2)
----------------------------------------------------------------------
Total Loans and Leases                 (0.1)     3.0     (1.2)    1.7
----------------------------------------------------------------------
Total Change in Interest Income        (0.3)     4.0     (1.3)    2.4
----------------------------------------------------------------------

Change in Interest Expense:
Interest-Bearing Deposits
   Demand                                 -      0.3     (0.1)    0.2
   Savings                             (0.4)     1.6     (0.1)    1.1
   Time                                 0.3      0.5        -     0.8
----------------------------------------------------------------------
Total Interest-Bearing Deposits        (0.1)     2.4     (0.2)    2.1
----------------------------------------------------------------------
Short-Term Borrowings                     -      0.2        -     0.2
Securities Sold Under Agreements
 to Repurchase                          0.6      0.9     (0.1)    1.4
----------------------------------------------------------------------
Total Change in Interest Expense        0.5      3.5     (0.3)    3.7
----------------------------------------------------------------------

Change in Net Interest Income      $   (0.8) $   0.5   $ (1.0)  $(1.3)
======================================================================

(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, December 31, March 31,
(dollars in thousands)                  2006         2005     2005 (1)
----------------------------------------------------------------------
Salaries                              $ 26,724     $ 27,765  $ 26,111
Incentive Compensation                   4,321        4,067     3,968
Share-Based Compensation                 1,481          720     1,715
Commission Expense                       1,922        1,715     2,252
Retirement and Other Benefits            5,235        4,245     4,768
Payroll Taxes                            3,385        1,999     3,453
Medical, Dental, and Life Insurance      2,161        2,168     2,231
Separation Expense                         557          640       271
----------------------------------------------------------------------
Total Salaries and Benefits           $ 45,786     $ 43,319  $ 44,769
======================================================================

(1) Certain prior period information has been reclassified to conform
 to current presentation.




Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances (Unaudited)                  Table 8
----------------------------------------------------------------------
                                    March 31, December 31,   March 31,
(dollars in thousands)               2006        2005 (1)    2005 (1)
----------------------------------------------------------------------
Commercial
Commercial and Industrial         $  957,893   $  918,842  $  932,978
Commercial Mortgage                  591,770      558,346     609,689
Construction                         154,737      153,682      88,769
Lease Financing                      467,688      470,155     468,349
----------------------------------------------------------------------
Total Commercial                   2,172,088    2,101,025   2,099,785
----------------------------------------------------------------------
Consumer
Residential Mortgage               2,441,664    2,431,198   2,345,182
Home Equity                          888,528      874,400     803,893
Other Revolving Credit and
 Installment                         719,553      736,364     736,250
Lease Financing                       24,292       25,549      30,680
----------------------------------------------------------------------
Total Consumer                     4,074,037    4,067,511   3,916,005
----------------------------------------------------------------------
Total Loans and Leases            $6,246,125   $6,168,536  $6,015,790
======================================================================




Air Transportation Credit Exposure (2) (Unaudited)
----------------------------------------------------------------------
                              March 31,             Dec. 31, March 31,
                                 2006                 2005     2005
                   -------------------------------- ------------------
                                    Unused    Total     Total    Total
(dollars in        Outstanding Commitments Exposure  Exposure Exposure
 thousands)
--------------------------------------------------- ------------------
Passenger Carriers
 Based In the
 United States        $ 68,609    $     - $ 68,609  $ 68,829 $ 90,353
Passenger Carriers
 Based Outside the
 United States          20,613          -   20,613    20,678   24,888
Cargo Carriers          13,240          -   13,240    13,240   13,475
--------------------------------------------------- ------------------
Total Air
 Transportation
 Credit Exposure      $102,462    $     - $102,462  $102,747 $128,716
=================================================== ==================

(1) Certain prior period information has been reclassified to conform
 to current presentation.
(2) Exposure includes loans, leveraged leases and operating leases.



Bank of Hawaii Corporation and Subsidiaries
Consolidated Non-Performing Assets and Accruing Loans and Leases Past
 Due 90 Days or More (Unaudited)                               Table 9
----------------------------------------------------------------------
                                 March 31, December 31, September 30,
(dollars in thousands)            2006       2005 (1)      2005 (1)
----------------------------------------------------------------------
Non-Performing Assets
Non-Accrual Loans and Leases
 Commercial
  Commercial and Industrial    $      236 $        212 $          471
  Commercial Mortgage                  52          130          1,617
Lease Financing                         -            -              4
----------------------------------------------------------------------
 Total Commercial                     288          342          2,092
----------------------------------------------------------------------
 Consumer
  Residential Mortgage              4,922        5,439          5,021
  Home Equity                          38           39             41
----------------------------------------------------------------------
 Total Consumer                     4,960        5,478          5,062
----------------------------------------------------------------------
Total Non-Accrual Loans and
 Leases                             5,248        5,820          7,154
----------------------------------------------------------------------
Foreclosed Real Estate                358          358            413
Other Investments                     300          300            683
----------------------------------------------------------------------
Total Non-Performing Assets    $    5,906 $      6,478 $        8,250
======================================================================

Accruing Loans and Leases Past
 Due 90 Days or More
 Commercial
  Commercial and Industrial    $        - $          - $            -
  Commercial Mortgage                   -            -              -
----------------------------------------------------------------------
 Total Commercial                       -            -              -
----------------------------------------------------------------------
 Consumer
  Residential Mortgage                464        1,132          1,545
  Home Equity                          85          185             83
  Other Revolving Credit and
   Installment                      1,390        1,504          1,479
  Lease Financing                      18           29             51
----------------------------------------------------------------------
 Total Consumer                     1,957        2,850          3,158
----------------------------------------------------------------------
Total Accruing Loans and Leases
 Past Due 90 Days or More      $    1,957 $      2,850 $        3,158
======================================================================

Total Loans and Leases         $6,246,125 $  6,168,536 $    6,202,546
======================================================================

Ratio of Non-Accrual Loans and
 Leases to Total Loans and
 Leases                              0.08%        0.09%          0.12%
----------------------------------------------------------------------
Ratio of Non-Performing Assets
 to Total Loans and Leases,
 Foreclosed Real Estate and
 Other Investments                   0.09%        0.11%          0.13%
----------------------------------------------------------------------

Ratio of Non-Performing Assets and
 Accruing Loans and Leases
 Past Due 90 Days or More to
  Total Loans and Leases             0.13%        0.15%          0.18%
----------------------------------------------------------------------

Quarter to Quarter Changes in Non-
 Performing Assets
Balance at Beginning of Quarter$    6,478 $      8,250 $       10,920
 Additions                            907        1,191            919
 Reductions
  Payments                           (445)      (2,345)        (1,326)
  Return to Accrual                  (985)        (231)        (2,007)
  Sales of Foreclosed Assets            -         (122)             -
  Charge-offs/Write-downs             (49)        (265)          (256)
----------------------------------------------------------------------
 Total Reductions                  (1,479)      (2,963)        (3,589)
----------------------------------------------------------------------
Balance at End of Quarter      $    5,906 $      6,478 $        8,250
======================================================================


                                                 June 30,   March 31,
(dollars in thousands)                            2005 (1)   2005 (1)
----------------------------------------------------------------------
Non-Performing Assets
Non-Accrual Loans and Leases
 Commercial
  Commercial and Industrial                     $      430 $      470
  Commercial Mortgage                                1,805      1,994
 Lease Financing                                     1,586      2,418
----------------------------------------------------------------------
 Total Commercial                                    3,821      4,882
----------------------------------------------------------------------
 Consumer
  Residential Mortgage                               5,968      7,432
  Home Equity                                          156        185
----------------------------------------------------------------------
 Total Consumer                                      6,124      7,617
----------------------------------------------------------------------
Total Non-Accrual Loans and Leases                   9,945     12,499
----------------------------------------------------------------------
Foreclosed Real Estate                                 292        183
Other Investments                                      683        683
----------------------------------------------------------------------
Total Non-Performing Assets                     $   10,920 $   13,365
======================================================================
Accruing Loans and Leases Past
 Due 90 Days or More
 Commercial
  Commercial and Industrial                     $        9 $       29
  Commercial Mortgage                                2,213      2,243
----------------------------------------------------------------------
 Total Commercial                                    2,222      2,272
----------------------------------------------------------------------
 Consumer
  Residential Mortgage                               1,310        604
  Home Equity                                            -         70
  Other Revolving Credit and Installment             1,417      1,417
  Lease Financing                                        -          -
----------------------------------------------------------------------
 Total Consumer                                      2,727      2,091
----------------------------------------------------------------------
Total Accruing Loans and Leases Past Due 90 Days
 or More                                        $    4,949 $    4,363
======================================================================

======================================================================
Total Loans and Leases                          $6,151,418 $6,015,790
======================================================================

Ratio of Non-Accrual Loans and Leases to Total
 Loans and Leases                                     0.16%      0.21%
----------------------------------------------------------------------


Ratio of Non-Performing Assets to Total Loans
 and Leases, Foreclosed Real Estate and Other
 Investments                                          0.18%      0.22%
----------------------------------------------------------------------
Ratio of Non-Performing Assets and Accruing
 Loans and Leases
 Past Due 90 Days or More to Total Loans and
  Leases                                              0.26%      0.29%
----------------------------------------------------------------------
Quarter to Quarter Changes in Non-
 Performing Assets
Balance at Beginning of Quarter                 $   13,365 $   13,859
 Additions                                           3,088      2,796
 Reductions
  Payments                                          (5,097)    (2,202)
  Return to Accrual                                   (392)      (698)
  Sales of Foreclosed Assets                             -       (129)
  Charge-offs/Write-downs                              (44)      (261)
----------------------------------------------------------------------
 Total Reductions                                   (5,533)    (3,290)
----------------------------------------------------------------------
Balance at End of Quarter                       $   10,920 $   13,365
======================================================================
(1) Certain prior period information has been reclassified to
conform to current presentation.



Bank of Hawaii Corporation and Subsidiaries
Consolidated Reserve for Credit Losses (Unaudited)
                                                             Table 10
----------------------------------------------------------------------
                                             Three Months Ended
                                    March 31,  December 31,  March 31,
(dollars in thousands)                2006        2005         2005
----------------------------------------------------------------------
Balance at Beginning of Period       $96,167     $96,167     $113,596
Loans and Leases Charged-Off
 Commercial
  Commercial and Industrial             (382)       (732)        (574)
 Consumer
  Residential Mortgage                   (10)       (134)        (315)
  Home Equity                           (141)       (236)        (292)
  Other Revolving Credit
   and Installment                    (4,254)     (5,651)      (4,582)
  Lease Financing                        (12)        (35)         (34)
----------------------------------------------------------------------
Total Loans and Leases Charged-Off    (4,799)     (6,788)      (5,797)
----------------------------------------------------------------------
Recoveries on Loans and Leases
 Previously Charged-Off
 Commercial
  Commercial and Industrial              295         470          541
  Commercial Mortgage                     89       3,006           62
  Lease Financing                          -          26           32
 Consumer
  Residential Mortgage                   122         156          106
  Home Equity                             61          97           60
  Other Revolving Credit
   and Installment                     1,462       1,440        1,287
  Lease Financing                          9           5           19
----------------------------------------------------------------------
Total Recoveries on Loans and
 Leases Previously Charged-Off         2,038       5,200        2,107
----------------------------------------------------------------------
Net Loan and Lease Charge-Offs        (2,761)     (1,588)      (3,690)
Provision for Credit Losses            2,761       1,588            -
----------------------------------------------------------------------
Balance at End of Period (1)         $96,167     $96,167     $109,906
======================================================================

Components
Allowance for Loan and Lease Losses  $91,064     $91,090     $105,006
Reserve for Unfunded Commitments       5,103       5,077        4,900
----------------------------------------------------------------------
Total Reserve for Credit Losses      $96,167     $96,167     $109,906
======================================================================

Average Loans and Leases
 Outstanding                      $6,181,697  $6,177,424   $6,000,572
======================================================================

Ratio of Net Loan and Lease
 Charge-Offs to Average Loans and
  Leases Outstanding (annualized)       0.18%       0.10%        0.25%
Ratio of Allowance for Loan and
 Lease Losses to Loans and Leases
  Outstanding                           1.46%       1.48%        1.75%

(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.



Bank of Hawaii Corporation and Subsidiaries
Business Segment Selected Financial
 Information (Unaudited)                                      Table 11
----------------------------------------------------------------------
                                     Investment  Treasury
                 Retail   Commercial  Services     and    Consolidated
(dollars in      Banking   Banking     Group      Other       Total
 thousands)                                      Corporate
----------------------------------------------------------------------
Three Months
 Ended March
  31, 2006
Net Interest
 Income           $57,659  $34,777    $3,404      $6,362     $102,202
Provision for
 Credit Losses      2,494      421         -        (154)       2,761
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Credit Losses     55,165   34,356     3,404       6,516       99,441
Non-Interest
 Income            23,038    9,808    17,422       2,304       52,572
----------------------------------------------------------------------
                   78,203   44,164    20,826       8,820      152,013
Non-Interest
 Expense          (40,897) (21,894)  (16,214)     (1,813)     (80,818)
----------------------------------------------------------------------
Income Before
 Income Taxes      37,306   22,270     4,612       7,007       71,195
Provision for
 Income Taxes     (13,803)  (8,187)   (1,706)     (2,149)     (25,845)
----------------------------------------------------------------------
Allocated Net
 Income            23,503   14,083     2,906       4,858       45,350
----------------------------------------------------------------------
Allowance
 Funding Value       (189)    (546)       (8)        743            -
Provision for
 Credit Losses      2,494      421         -        (154)       2,761
Economic
 Provision         (3,160)  (2,283)     (102)          -       (5,545)
Tax Effect of
 Adjustments          316      891        41        (218)       1,030
----------------------------------------------------------------------
Income Before
 Capital Charge    22,964   12,566     2,837       5,229       43,596
Capital Charge     (5,392)  (4,415)   (1,583)     (7,977)     (19,367)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $17,572   $8,151    $1,254     $(2,748)     $24,229
======================================================================

RAROC (ROE for
 the Company)          48%      32%       20%         17%          26%
======================================================================

Total Assets at
 March 31,
  2006         $3,874,845 $2,542,730  $189,084  $3,921,390 $10,528,049
======================================================================

Three Months
 Ended March
 31, 2005 (1)
Net Interest
 Income           $52,310  $34,562    $2,929     $10,857     $100,658
Provision for
 Credit Losses      3,485      416         -      (3,901)           -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Credit Losses     48,825   34,146     2,929      14,758      100,658
Non-Interest
 Income            21,528   11,531    17,340       1,916       52,315
----------------------------------------------------------------------
                   70,353   45,677    20,269      16,674      152,973
Non-Interest
 Expense          (40,273) (22,560)  (15,995)     (2,035)     (80,863)
----------------------------------------------------------------------
Income Before
 Income Taxes      30,080   23,117     4,274      14,639       72,110
Provision for
 Income Taxes     (11,130)  (8,598)   (1,582)     (5,278)     (26,588)
----------------------------------------------------------------------
Allocated Net
 Income            18,950   14,519     2,692       9,361       45,522
----------------------------------------------------------------------
Allowance
 Funding Value       (162)    (602)       (6)        770            -
Provision for
 Credit Losses      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    18,835   12,853     2,632       7,387       41,707
Capital Charge     (5,288)  (4,636)   (1,510)    (10,027)     (21,461)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $13,547   $8,217    $1,122     $(2,640)     $20,246
======================================================================

RAROC (ROE for
 the Company)          40%      31%       19%         20%          24%
======================================================================

Total Assets at
 March 31,
 2005          $3,791,538 $2,390,204  $142,619  $3,583,669  $9,908,030
======================================================================

(1) Certain prior period information has been reclassified to
conform to current presentation.



Bank of Hawaii Corporation and Subsidiaries
Quarterly Summary of Selected
 Consolidated Financial Data (Unaudited)                      Table 12
----------------------------------------------------------------------
(dollars in
 thousands                       Three Months Ended
 except per    March 31, December 31, September 30, June 30, March 31,
 share amounts)  2006       2005          2005        2005    2005 (1)
----------------------------------------------------------------------
Quarterly
 Operating
 Results
Interest Income
 Interest and
  Fees on
  Loans and
  Leases        $99,371    $97,697       $94,381     $90,119   $86,467
 Income on
  Investment
  Securities
  - Available
  for Sale       30,835     29,820        28,482      27,987    27,319
 Income on
  Investment
  Securities
  - Held to
  Maturity        4,757      4,899         5,109       5,527     5,825
  Deposits           43        103            57          36        23
  Funds Sold        125        154           935         165        75
  Other             272        272           270         271       449
----------------------------------------------------------------------
Total Interest
 Income         135,403    132,945       129,234     124,105   120,158
----------------------------------------------------------------------
Interest Expense
 Deposits        19,633     17,479        15,766      13,577    11,604
 Securities
  Sold Under
  Agreements
  to Repurchase   7,890      6,504         6,796       4,562     3,325
 Funds
  Purchased       1,893      1,730           901       1,151       733
 Short-Term
  Borrowings         57         61            50          45        32
 Long-Term
  Debt            3,728      3,715         3,761       3,731     3,806
----------------------------------------------------------------------
Total Interest
 Expense         33,201     29,489        27,274      23,066    19,500
----------------------------------------------------------------------
Net Interest
 Income         102,202    103,456       101,960     101,039   100,658
Provision for
 Credit Losses    2,761      1,588         3,000           -         -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Credit Losses   99,441    101,868        98,960     101,039   100,658
----------------------------------------------------------------------
Non-Interest Income
 Trust and
  Asset
  Management     14,848     14,098        14,052      14,058    14,622
 Mortgage
  Banking         2,987      2,597         2,618       2,594     2,590
 Service
  Charges on
  Deposit
  Accounts       10,132     10,151        10,046       9,569    10,179
 Fees,
  Exchange,
  and Other
  Service
  Charges        14,767     15,147        15,394      15,211    13,836
 Investment
  Securities
  Gains
  (Losses)            -         (4)            8         337         -
 Insurance        5,019      4,201         5,324       4,330     5,788
 Other            4,819      4,619         8,074       4,575     5,300
----------------------------------------------------------------------
Total Non-
 Interest
 Income          52,572     50,809        55,516      50,674    52,315
----------------------------------------------------------------------
Non-Interest Expense
 Salaries and
  Benefits       45,786     43,319        44,366      43,856    44,769
 Net
  Occupancy       9,643      9,643         9,896       9,189     9,545
 Net Equipment    5,028      5,358         5,335       5,377     5,471
 Professional
  Fees              438      4,057         5,689       2,905     3,051
 Other           19,923     20,802        19,310      17,677    18,027
----------------------------------------------------------------------
Total Non-
 Interest
 Expense         80,818     83,179        84,596      79,004    80,863
----------------------------------------------------------------------
Income Before
 Income Taxes    71,195     69,498        69,880      72,709    72,110
Provision for
 Income Taxes    25,845     24,717        25,051      26,280    26,588
----------------------------------------------------------------------
Net Income      $45,350    $44,781       $44,829     $46,429   $45,522
======================================================================

Basic Earnings
 Per Share        $0.89      $0.88         $0.87       $0.90     $0.85
Diluted
 Earnings Per
 Share            $0.87      $0.86         $0.85       $0.87     $0.83

Balance Sheet Totals
Total
 Assets     $10,528,049 $10,187,038 $10,085,235 $10,059,690 $9,908,030
Net Loans
 and Leases   6,155,061   6,077,446   6,110,892   6,049,831  5,910,784
Total
 Deposits     8,147,101   7,907,468   7,756,586   7,726,758  7,760,662
Total
 Shareholders'
 Equity         681,078    693,352       696,311     712,169   716,656

Performance Ratios
Net Income to
 Average Total
 Assets (ROA)    1.82 %     1.76 %        1.74 %      1.87 %    1.88 %
Net Income to
 Average
 Shareholders'
 Equity (ROE)     26.13      25.19         24.61       25.98     23.66
Net Interest
 Margin (2)        4.41       4.42          4.30        4.36      4.42
Efficiency
 Ratio (3)        52.22      53.92         53.72       52.07     52.86

(1) Certain prior period information has been reclassified to
conform to current presentation.
(2) The net interest margin is defined as net interest income, on
a fully-taxable equivalent basis, as a percentage of average earning
assets.
(3) 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) Mobile: 808-265-6367 skiguchi@boh.com Cindy Wyrick, 808-537-8430 (Investors/Analysts) cwyrick@boh.com SOURCE: Bank of Hawaii Corporation