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Bank of Hawaii Corporation Second Quarter 2002 Financial Results

HONOLULU--(BUSINESS WIRE)--July 22, 2002--Bank of Hawaii Corporation (NYSE:BOH):

  • Net Income $31.0 Million, or $0.42 Per Share
  • Board of Directors Declares Dividend of $0.18 Per Share
  • Shares Repurchases Total 3.9 Million During the Quarter
  • Company Signs Agreement with Metavante for Key Technology Services

Bank of Hawaii Corporation (NYSE:BOH) today reported diluted earnings per share of $0.42 for the second quarter of 2002, up 31.3 percent from $0.32 in the second quarter of 2001. Net income for the second quarter was $31.0 million, up 16.0 percent from $26.7 million in the comparable quarter last year. The return on average assets for the quarter was 1.23 percent, up from 0.83 percent in the same period last year. The return on average equity was 9.94 percent for the quarter, compared to 7.69 percent in the second quarter of 2001.

"Our financial results in the second quarter continue to show progress and we remain encouraged by the improving Hawaii economy," said Michael E. O'Neill, Chairman, CEO and President. "Our recent decision to move key technology services to Metavante in 2003 will improve our operating efficiency and allow us to focus attention on better serving our customers."

For the first six months of 2002, net income was $62.1 million, up 2.7 percent from net income of $60.4 million for the same period last year. Diluted earnings per share were $0.83 for the first half of 2002, up 12.2 percent from $0.74 per share for the same period last year. The year-to-date return on average assets was 1.22 percent, up from 0.91 percent for the first six months of 2001. The year-to-date return on average equity was 9.96 percent versus 9.0 percent for the first half of 2001.

There were no non-core items in the second quarter of 2002; however, the presence of non-core items and the effects of business divestitures in prior quarters continue to have a significant impact on the comparability of results. Included in the first quarter of 2002 were restructuring costs of $2.0 million related to completion of the Company's previously announced divestiture plan. Non-core items in the second quarter of 2001 included gains of $24.8 million related to the divestitures and $11.1 million from sales of investments. Restructuring and other non-core expenses of $38.9 million offset these gains. Supplemental information has been provided in Table 9 summarizing the continuing core business results for the last six quarters.

Financial Highlights

Net interest income for the second quarter of 2002 on a fully taxable equivalent basis was $93.0 million, down $1.9 million, or 2.0 percent from the previous quarter largely due to expected decreases in the amount of mortgage loans held for sale. Net interest income was down $23.7 million from the prior year quarter primarily due to asset sales related to the divestitures, the exit of the Asia business and the managed reduction of loans to reduce credit risk.

Bank of Hawaii Corporation's net interest margin was 3.97 percent for the second quarter of 2002, a 6 basis point increase from 3.91 percent in the second quarter last year and up 4 basis points from 3.93 percent in the previous quarter. The improvement was primarily due to reductions in short-term borrowings and time deposits, which lowered the Company's cost of funds.

The provision for loan and lease losses was $3.3 million for the second quarter of 2002, down $3.1 million, or 48.2 percent from $6.4 million in the same quarter last year and down $5.0 million, or 59.9 percent from $8.3 million in the previous quarter. The provision in the second quarter of 2002 equaled net charge-offs for the quarter.

Non-interest income was $48.9 million for the quarter, down $5.1 million or 9.4 percent from $54.0 million in the first quarter of 2002 primarily due to the anticipated decrease in revenue from mortgage banking activities. The second quarter of 2001 included $35.9 million in previously mentioned gains. Adjusted for these items, non-interest income decreased $13.1 million from the previous year largely due to sales of the Company's South Pacific entities and Pacific Century Bank branch franchise in California.

Non-interest expense for the second quarter of 2002 was $90.4 million compared to $92.4 million in the previous quarter, which included $2.0 million in restructuring costs. Non-interest expense in the second quarter of 2001 included restructuring and other related costs of $38.9 million. Adjusting for these items, non-interest expense declined $32.0 million or 26.2 percent from the same quarter last year and was unchanged from the previous quarter. The most significant reductions were in Salaries and Other Operating Expenses, which were down $10.8 million and $9.8 million, respectively, and were largely associated with the divested businesses. Other Operating Expenses were up compared to the previous quarter as the Company increased its investment in employee education and processes, primarily related to customer sales and service initiatives.

The efficiency ratio was 63.7 percent for the second quarter of 2002 compared to 62.1 percent in the previous quarter and 75.2 percent in the same quarter last year. For the first six months of 2002, the efficiency ratio improved to 62.9 percent from 66.7 percent in the same period last year.

The 35.6 percent effective tax rate for the first six months of 2002 is a decrease from the prior year as the effective tax rate in 2001 reflected the impact of divestitures and foreign taxes.

Asset Quality

Bank of Hawaii Corporation's credit quality continued to benefit from an improving Hawaii economy during the second quarter of 2002. Asset quality as measured by the Company's internal credit risk ratings improved during the quarter, including its exposure to air transportation and hotel companies.

Non-performing assets were $78.8 million at the end of the second quarter 2002, down 13.1 percent from $90.7 million at the end of the first quarter 2002. Compared to the same quarter last year, non-performing assets were down $40.1 million, or 33.7 percent. At June 30, 2002 the ratio of non-performing assets to total loans plus foreclosed assets was 1.45 percent, down from 1.61 percent at March 31, 2002 and 1.55 percent at June 30, 2001. The decrease in non-performing assets was largely due to sales of a nationally syndicated credit and one Hawaii loan held for sale as well as the return to accrual of two Hawaii based credits. These reductions were partially offset by the addition of two credits in the West Pacific region.

Non-accrual loans were $61.6 million at June 30, 2002 down from $63.7 million at March 31, 2002 due to the previously mentioned activity in non-performing assets. Non-accrual loans at June 30, 2002 were down $5.7 million, or 8.5 percent from June 30, 2001. Non-accrual loans as a percentage of total loans were 1.14 percent at June 30, 2002, unchanged from the previous quarter and up from 0.88 percent in the same period last year. The increase in the ratio from the prior year is mainly due to a $2.2 billion decrease in loans outstanding resulting from the divestiture of operations in the South Pacific, Asia and California in the prior year, and significant reductions in national syndications.

Net charge-offs for the second quarter of 2002 were $3.3 million or 0.24 percent of total average loans (annualized). Charge-offs of $7.5 million were partially offset by recoveries of $4.2 million. The allowance for loan and lease losses of $159.0 million at June 30, 2002 was unchanged from March 31, 2002 and down $40.8 million from June 30, 2001.

The ratio of the allowance for loan and lease losses to total loans was 2.94 percent at the end of the second quarter of 2002, up from 2.84 percent at the end of the first quarter of 2002 and up from 2.62 percent at the end of the same quarter last year. The ratio of the allowance for loan and lease losses to non-accrual loans was 258 percent, up slightly from 249 percent in the previous quarter and down from 297 percent last year.

Air transportation exposure totaled $154 million at June 30, 2002 and consisted of $136 million in equity interests in leveraged leases and $18 million in lending exposure, of which $7 million was undrawn. This exposure included $15 million to an air cargo carrier. All of the Company's air transportation exposures remain current.

Exposure to national hotel companies declined to $104 million at June 30, 2002 with undrawn commitments of $73 million. Exposure to Hawaii-based hotel companies totaled $137 million at June 30, 2002 including undrawn commitments of $32 million. In the West Pacific, loans outstanding to hotel companies totaled $43 million at the end of second quarter 2002. All of the Company's hotel exposures remain current.

Bank of Hawaii Corporation's commitments to telecommunications companies totaled $45 million at June 30, 2002. The Company's outstanding exposure was $8 million at the end of second quarter, including $6 million in performing loans and venture investments of $2 million.

Syndicated loans outstanding decreased to $348 million during the second quarter of 2002. Total syndicated exposure, consisting of loans and undrawn commitments, declined $256 million from the prior quarter to $1.1 billion at June 30, 2002.

Other Financial Highlights

Total assets were $9.8 billion at the end of June 30, 2002, down from $10.6 billion at December 31, 2001 and down from $12.8 billion at the end of June 30, 2001. The most significant reductions were in commercial loans and foreign loans resulting from the divestitures and strategic risk reductions in the portfolio. In addition, the Company significantly reduced its loans held for sale.

Deposits at June 30, 2002 were $6.5 billion, down slightly from $6.7 billion at December 31, 2001 and down $1.7 billion from the end of June 30, 2001. The decline from the previous year was primarily due to sales of the Pacific Century Bank branch franchise in California and South Pacific operations, as well as a managed reduction in foreign deposits resulting from the decision to exit Asia. The Company continues to manage down its higher cost funds, including time deposits, purchased funds, short-term borrowings and long-term debt.

During the second quarter of 2002, Bank of Hawaii Corporation repurchased 3.9 million shares of common stock at an average cost of $28.53, totaling $111.5 million. At June 30, 2002, the Company had repurchased a total of 12.9 million shares under its previously announced share repurchase programs. Through June 30, 2002 a total of $324.4 million has been returned to the shareholder at an average cost of $25.12 per share. Since June 30, 2002 another 1.0 million shares have been repurchased at an average cost of $27.33 per share. Remaining buyback authority under the existing repurchase programs was $218.1 million at July 19, 2002.

Capital and liquidity remain exceptionally strong at the Company. At June 30, 2002, the Tier 1 leverage ratio was 12.11 percent compared to 12.64 percent at March 31, 2002 and 10.47 percent at June 30, 2001.

Bank of Hawaii Corporation's Board of Directors declared a quarterly cash dividend of $0.18 per share on the Company's outstanding shares. The dividend will be payable on September 16, 2002 to shareholders of record at the close of business on August 23, 2002.

Key Systems Replacement Project

In an effort to reduce its operating costs over the long term, Bank of Hawaii Corporation also announced today that it has signed an agreement with Metavante Corporation, which will serve as the bank's primary technology systems provider. Metavante currently provides services to over 5,100 clients, including the largest 20 banks in the United States. Bank of Hawaii will convert its key systems, including loans and deposits, to Metavante's state-of-the-industry computer system. The new systems are intended to enhance customer service and convenience, as well as improve the Bank of Hawaii's efficiency. This seven-year outsourcing arrangement is similar to those used by other Hawaii banks and is expected to be operational in the third quarter of 2003.

In connection with this decision, the Company estimates that it will recognize mainframe system transition charges of approximately $35 million over the next five quarters. These estimated charges are comprised of $12 million in conversion and implementation costs, $11 million in accelerated depreciation on the existing systems and other equipment costs, $6 million in outplacement and severance, and $6 million in other costs. The rescale of the Company's key technology and operations services is anticipated to result over the next year in a reduction of approximately 250 employees. Beginning in the third quarter of 2003, the conversion should provide annual cost savings of over $17 million compared to current expense levels.

Economic Outlook

Hawaii's economy has recovered from the adverse impact of last year's terrorist attack. While May jobs remain down 0.5 percent from one year ago, annualized 2002 job growth of 5.0 percent through May points to a rapid employment recovery. Real estate and construction activity continues to lead the Hawaii economy, with volumes and valuations reaching new highs in some categories. Hawaii seasonally adjusted unemployment returned to 4.2 percent during May 2002, one-tenth of a point below third quarter 2001 and down from the November 2001 peak of 5.6 percent.

Domestic visitor arrivals during May 2002 were up 0.4 percent from one year ago and visitor days rose 3.1 percent, a record setting pace. International visitors, who normally represent approximately one-quarter of total visitors, remained down nearly 10 percent in recent months. Recent strengthening of yen-dollar exchange rates and other currency trends are boosting the foreign travel recovery, a shortfall already offset by the rebound in domestic travel.

Earnings Outlook

Bank of Hawaii Corporation continues its previous earnings guidance of $120 million in net income for the year 2002. Given the improvement in the Hawaii economy and recent encouraging trends in credit losses, the Company expects to reduce its allowance for loan losses. The amount and timing of the reduction will be based on evaluations of credit risk. However, based on current conditions, the Company does not expect to continue to record a provision for loan losses equal to the amount of loan losses.

The cost to convert its key systems will be incurred during the conversion period beginning next quarter and continuing through the third quarter of 2003. Under new accounting standards included in SFAS 146, severance costs will be recognized throughout the conversion period. The costs of abandoning software and hardware assets will be reflected as accelerated amortization and depreciation over the conversion period. Costs of conversion services and other related costs will be recognized as incurred. The Company will disclose system conversion costs on a separate line of the income statement in future periods.

For the third quarter of 2002, operating income is expected to approximate the levels of second quarter. Incremental system conversion costs, which will be separately identified, are estimated to be approximately $7.8 million for the third quarter. The amount of the provision for loan losses, if any, will depend on determinations of credit risk that will be made near the end of the quarter. Earnings per share and return on equity projections are dependent upon the terms and timing of share repurchases.

Conference Call Information

The Company will review its Second Quarter 2002 earnings today at 2:00 p.m. ET. 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) 997-8642 in the U.S. or (973) 694-2225 for international callers. A replay of the call will be available for one week beginning at 6:00 p.m. ET on Monday, July 22, 2002 by calling (800) 428-6051 in the U.S. or (973) 709-2089 for international callers and entering the number 248890 when prompted. A replay of the presentation will be also available on the Company's web site.

Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers and governments in Hawaii, American Samoa and the West Pacific. The Company's principal subsidiary, Bank of Hawaii, was founded in 1897 and is the leading commercial bank in the state of Hawaii.

This news release contains forward-looking statements concerning anticipated revenues and expenses in 2002 and beyond. We believe the assumptions underlying our forward-looking statements are reasonable. However, any of the assumptions could prove to be inaccurate and actual results may differ materially from those projected for a variety of reasons including, but not limited to: the Hawaii economy may not continue at the pace we anticipate; our refocused emphasis on our Hawaii market may not achieve the customer and revenue gains we anticipate; our credit markets may deteriorate and our credit quality may fall short of our goals; we may not achieve the expense reductions we expect; we may not be able to maintain our net interest margin; we may not be able to implement our proposed equity repurchases in the amount or at the times planned; the economics or timing, or both, of our technology outsourcing project may not result in the expected benefits; unanticipated difficulties or delays in the conversion of our data processing to outsourcing may result in the reduction or delay of anticipated cost savings or increased cost of conversion; the technology outsourcing project may not be able to achieve the projected reductions in staffing; we may encounter unanticipated difficulties or costs in exiting existing data processing agreements with third parties; the required level of reserves for loan and lease losses may increase or decrease due to changes in our credit quality or risk profile; there may be economic volatility in the markets we serve; and there may be changes in business and economic conditions, competition, fiscal and monetary policies or legislation. We do not undertake any obligation to update any 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)                       

                                  Quarter Ended      Six Months Ended 
Earnings Highlights and          June 30,  June 30,  June 30, June 30,
 Performance Ratios               2002      2001      2002      2001
-------------------------------------------------- -------------------

Net Income                     $ 31,016  $ 26,739  $ 62,072  $ 60,416 
Basic Earnings Per Share           0.43      0.33      0.85      0.75 
Diluted Earnings Per Share         0.42      0.32      0.83      0.74 
Cash Dividends                   13,068    14,427    26,245    28,790 
Return on Average Assets           1.23%     0.83%     1.22%     0.91%
Return on Average Equity           9.94%     7.69%     9.96%     9.00%
Net Interest Margin                3.97%     3.91%     3.95%     3.94%
Efficiency Ratio                  63.71%    75.15%    62.86%    66.69%


Statement of Condition Highlights             June 30,      June 30,
 and Performance Ratios                         2002         2001     
-----------------------------------         --------------------------

Total Assets                                $ 9,823,348  $ 12,755,507 
Net Loans                                     5,249,498     7,418,006 
Total Deposits                                6,455,268     8,108,468 
Total Shareholders' Equity                    1,191,072     1,395,731 

Book Value Per Common Share                 $     17.05  $      17.24 
Allowance / Loans Outstanding                      2.94%         2.62%
Average Equity / Average Assets                   12.27%        10.08%
Employees (FTE)                                   2,983         4,197 
Branches and offices                                 97           163 

Market Price Per Share of Common                                      
 Stock for the Quarter Ended:                                         
                                    Closing      $28.00        $25.79 
                                    High         $29.86        $25.80 
                                    Low          $25.45        $19.38 


Bank of Hawaii Corporation and subsidiaries                           
Consolidated Statements of Income (Unaudited)                  Table 2
----------------------------------------------------------------------
                             Three Months Ended     Six Months Ended  
(dollars in thousands              June 30              June 30       
 except per share amounts)     2002      2001       2002       2001 
----------------------------------------------------------------------
Interest Income                                                       
  Interest and Fees on                                                
   Loan and Leases          $ 92,441  $ 163,622  $ 191,086  $ 352,527 
  Income on Investment                                                
   Securities - Held to                                               
   Maturity                    4,894      9,097     10,092     19,114 
  Income on Investment                                                
   Securities - Available                                             
   for Sale                   26,455     36,750     53,595     76,591 
  Deposits                     6,011      4,941     11,058     10,325 
  Funds Sold and Security                                             
   Resale Agreements             752      1,352      1,755      2,450 
  Other                        1,395      1,347      2,727      2,564 
----------------------------------------------------------------------
    Total Interest Income    131,948    217,109    270,313    463,571 
Interest Expense                                                      
  Deposits                    22,166     60,021     46,144    132,002 
  Security Repurchase                                                 
   Agreements                  8,256     20,843     18,549     45,473 
  Funds Purchased                245      2,334        476      8,456 
  Short-Term Borrowings          289      2,763        938      5,993 
  Long-Term Debt               8,055     14,459     16,374     29,773 
----------------------------------------------------------------------
    Total Interest Expense    39,011    100,420     82,481    221,697 
----------------------------------------------------------------------
Net Interest Income           92,937    116,689    187,832    241,874 
Provision for Loan and                                                
 Lease Losses                  3,324      6,413     11,616     58,878 
----------------------------------------------------------------------
    Net Interest Income                                               
     After Provision for                                              
     Loan and Lease Losses    89,613    110,276    176,216    182,996 
Non-Interest Income                                                   
  Trust and Asset                                                     
   Management                 14,175     15,247     28,993     31,042 
  Mortgage Banking             3,080      4,673     11,263      9,781 
  Service Charges on                                                  
   Deposit Accounts            7,956      9,878     16,366     19,817 
  Fees, Exchange, and                                                 
   Other Service Charges      13,065     19,784     25,517     43,250 
  Gain on Sales of Banking                                            
   Operations, Net of                                                 
   Venture Investment                                                 
   Losses                          -     24,794          -     96,908 
  Investment Securities                                               
   Gains                           3     11,776          3     31,979 
  Other                       10,643     11,823     20,794     25,659 
----------------------------------------------------------------------
    Total Non-Interest                                                
     Income                   48,922     97,975    102,936    258,436 
Non-Interest Expense                                                  
  Salaries                    38,650     49,469     78,600     99,451 
  Pensions and Other                                                  
   Employee Benefits           9,391     11,506     19,387     24,424 
  Net Occupancy Expense        9,321     11,898     18,914     24,025 
  Net Equipment Expense        9,997     13,103     20,118     26,486 
  Goodwill Amortization            -      3,634          -      7,583 
  Restructuring and Other                                             
   Related Costs                   -     38,904      1,979     83,343 
  Other                       23,015     32,807     43,788     68,329 
----------------------------------------------------------------------
    Total Non-Interest                                                
     Expense                  90,374    161,321    182,786    333,641 
----------------------------------------------------------------------
Income Before Income Taxes    48,161     46,930     96,366    107,791 
Provision for Income Taxes    17,145     20,191     34,294     47,375 
----------------------------------------------------------------------
    Net Income              $ 31,016   $ 26,739   $ 62,072   $ 60,416 
======================================================================
Basic Earnings Per Share       $0.43      $0.33      $0.85      $0.75 
Diluted Earnings Per Share     $0.42      $0.32      $0.83      $0.74 
Dividends Declared Per Share   $0.18      $0.18      $0.36      $0.36 
Basic Weighted Average                                                
 Shares                   72,299,850 80,516,216 72,803,414 80,120,449 
Diluted Weighted Average                                              
 Shares                   74,486,987 82,975,267 74,815,508 82,030,085 
======================================================================

Bank of Hawaii Corporation and subsidiaries                           
Consolidated Statements of Condition (Unaudited)               Table 3
----------------------------------------------------------------------
                                   June 30    December 31    June 30
(dollars in thousands)               2002         2001         2001 
----------------------------------------------------------------------
Assets                                                                
Interest-Bearing Deposits       $ 1,346,014  $ 1,101,974    $ 458,696 
Investment Securities - Held to                                       
 Maturity                                                             
 (Market Value of $323,722,                                        
  $407,838, and $542,795,                                          
   respectively)                    312,467      396,216      530,815 
Investment Securities -                                               
 Available for Sale               1,806,384    2,001,420    2,200,965 
Securities Purchased Under                                            
 Agreements to Resell                     -            -        7,688 
Funds Sold                          125,000      115,000      318,182 
Loans Held for Sale                  48,416      456,709      571,395 
Loans                             5,408,477    5,652,518    7,617,806 
  Allowance for Loan and Lease                                        
   Losses                          (158,979)    (158,979)    (199,800)
----------------------------------------------------------------------
      Net Loans                   5,249,498    5,493,539    7,418,006 
----------------------------------------------------------------------
    Total Earning Assets          8,887,779    9,564,858   11,505,747 
Cash and Non-Interest Bearing                                         
 Deposits                           314,541      405,981      391,552 
Premises and Equipment              188,128      196,171      242,040 
Customers' Acceptance Liability       1,657          593        4,184 
Accrued Interest Receivable          38,425       42,687       61,702 
Foreclosed Real Estate               17,223       17,174       40,078 
Mortgage Service Rights              30,244       27,291       19,282 
Goodwill                             36,216       36,216      138,233 
Other Assets                        309,135      336,826      352,689 
----------------------------------------------------------------------
    Total Assets                $ 9,823,348 $ 10,627,797 $ 12,755,507 
======================================================================
Liabilities                                                           
Domestic Deposits                                                     
  Demand - Non-Interest Bearing $ 1,465,378  $ 1,548,322  $ 1,591,824 
         - Interest Bearing       2,002,926    1,926,018    1,914,474 
  Savings                         1,276,016      967,825      758,262 
  Time                            1,652,805    1,927,778    2,602,035 
Foreign Deposits                                                      
  Demand-Non-Interest Bearing             -            2      319,165 
  Time Due to Banks                  16,777      230,247       53,968 
  Other Savings and Time             41,366       73,404      868,740 
----------------------------------------------------------------------
    Total Deposits                6,455,268    6,673,596    8,108,468 
Securities Sold Under Agreements                                      
 to Repurchase                    1,257,808    1,643,444    1,632,774 
Funds Purchased                      60,243       55,800      176,768 
Current Maturities of Long-Term                                       
 Debt                                50,000      100,670      316,670 
Short-Term Borrowings                29,910      134,222      227,280 
Banker's Acceptances Outstanding      1,657          593        4,184 
Retirement Expense Payable           37,642       36,175       36,010 
Accrued Interest Payable             23,427       29,762       59,558 
Taxes Payable                       181,826      138,366      170,811 
Other Liabilities                    80,154       98,422       97,571 
Long-Term Debt                      454,341      469,735      529,682 
----------------------------------------------------------------------
    Total Liabilities             8,632,276    9,380,785   11,359,776 
Shareholders' Equity                                                  
Common Stock ($.01 par value),                                        
 authorized 500,000,000 shares;                                       
 issued / outstanding:  June                                        
 2002 - 81,329,346 / 69,856,075                                       
 Dec. 2001 - 81,377,241 /                                           
 73,218,326; June 2001 -                                           
 81,368,629 / 80,948,825                806          806          806 
Capital Surplus                     370,947      367,672      367,390 
Accumulated Other Comprehensive                                       
 Income                              29,931       22,761       25,033 
Retained Earnings                 1,082,421    1,055,424    1,028,036 
Deferred Stock Grants                (4,182)      (7,637)     (17,038)
Treasury Stock, at Cost (Shares:                                      
  June 2002 - 11,473,271;                                             
  December 2001 - 8,158,915;                                         
  June 2001 - 419,804)             (288,851)    (192,014)      (8,496)
----------------------------------------------------------------------
    Total Shareholders' Equity    1,191,072    1,247,012    1,395,731 
----------------------------------------------------------------------
    Total Liabilities and                                             
     Shareholders' Equity       $ 9,823,348 $ 10,627,797 $ 12,755,507 
======================================================================

Bank of Hawaii Corporation and subsidiaries                           
Consolidated Statements of Shareholders' Equity (Unaudited)    Table 4
----------------------------------------------------------------------
                                                                Accum.
                                                                 Other
                                                               Compre-
                                             Common  Capital   hensive
(dollars in thousands)              Total    Stock   Surplus    Income
----------------------------------------------------------------------
For the Six Months 
Ended June 30, 2002                                
--------------------------------------------         
Balance at December 31, 2001    $ 1,247,012 $ 806 $ 367,672  $ 22,761 
Comprehensive Income                                                  
 Net Income                          62,072     -         -         - 
 Other Comprehensive Income, 
  Net of Tax                           
   Investment Securities              7,547     -         -     7,547 
   Foreign Currency                                             
    Translation Adjustment             (377)    -         -      (377)
  Total Comprehensive Income                                       

Common Stock Issued                                                   
    22,894 Profit Sharing Plan          632     -       119         - 
 1,222,308 Stock Option Plan         25,142     -     3,727         - 
    53,227 Dividend Reinvestment
           Plan                       1,464     -       264         - 
     3,605 Directors' Restricted 
           Shares and Deferred                                        
           Compensation Plan             50     -       103         - 
   (51,500) Employees' Restricted
             Shares                   2,469     -      (938)        - 
Treasury Stock Purchased                                              
 (4,610,800 shares)                (128,694)    -         -         - 
Cash Dividends Paid                 (26,245)    -         -         - 
----------------------------------------------------------------------
Balance at June 30, 2002        $ 1,191,072 $ 806 $ 370,947  $ 29,931 
======================================================================

Bank of Hawaii Corporation and subsidiaries                           
Consolidated Statements of Shareholders' Equity (Unaudited)   

                                          Deferred             Compre-
                               Retained     Stock   Treasury   hensive
(dollars in thousands)         Earnings    Grants     Stock    Income
----------------------------------------------------------------------
For the Six Months                                                    
Ended June 30, 2002                                                  
---------------------                                                 
Balance at December                                                   
 31, 2001                   $ 1,055,424  $ (7,637)$ (192,014)         
Comprehensive Income                                                  
 Net Income                      62,072         -          -  $62,072 
 Other Comprehensive                                                  
  Income, Net of Tax                                                  
   Investment Securities              -         -          -    7,547 
   Foreign Currency                                             
   Translation Adjustment             -         -          -     (377)
                                                             ---------
  Total Comprehensive                                                 
   Income                                                     $69,242 
                                                             =========
Common Stock Issued                                                   
   22,894 Profit Sharing Plan         -         -        513          
1,222,308 Stock Option Plan      (8,828)       48     30,195          
   53,227 Dividend Reinvestment 
           Plan                      (2)        -      1,202          
    3,605 Directors' Restricted                                       
          Shares and Deferred                                         
          Compensation Plan           -         -        (53)         
  (51,500) Employees' Restricted 
            Shares                    -     3,407                     
Treasury Stock Purchased                                              
 (4,610,800 shares)                   -         -   (128,694)         
Cash Dividends Paid             (26,245)        -          -          
-------------------------------------------------------------         
Balance at June 30, 2002    $ 1,082,421  $ (4,182)$ (288,851)         
=============================================================         

Bank of Hawaii Corporation and subsidiaries                           
Consolidated Statements of Shareholders' Equity (Unaudited)    
                                                                Accum.
                                                                 Other
                                                               Compre-
                                             Common  Capital   hensive
(dollars in thousands)              Total    Stock   Surplus    Income
----------------------------------------------------------------------
For the Six Months 
Ended June 30, 2001                                                   
-------------------------------                                       
Balance at December 31, 2000    $ 1,301,356 $ 806 $ 346,045 $ (25,079)
Comprehensive Income                                                  
 Net Income                          60,416     -         -         - 
 Other Comprehensive Income,
  Net of Tax                           
   Investment Securities             22,775     -         -    22,775 
   Foreign Currency                                             
    Translation Adjustment           27,496     -         -    27,496 
   Pension Liability Adjustments       (159)    -         -      (159)
     Total Comprehensive Income                                       

Common Stock Issued                                                   
  32,942 Profit Sharing Plan            725     -       180         - 
 416,413 Stock Option Plan            7,926     -       643         - 
  64,791 Dividend Reinvestment Plan   1,419     -       326         - 
   3,672 Directors' Restricted Shares                            
          and Deferred Compensation                                   
          Plan                          343     -        81         - 
 741,000 Employees' Restricted Shares   925     -    18,816         - 
  65,146 Hawaii Insurance Network     1,299     -     1,299         - 
Cash Dividends Paid                 (28,790)    -         -         - 
----------------------------------------------------------------------
Balance at June 30, 2001        $ 1,395,731 $ 806 $ 367,390  $ 25,033 
======================================================================

Bank of Hawaii Corporation and subsidiaries                           
Consolidated Statements of Shareholders' Equity (Unaudited)   

                                          Deferred             Compre-
                               Retained     Stock   Treasury   hensive
(dollars in thousands)         Earnings    Grants     Stock    Income
----------------------------------------------------------------------
For the Six Months                                                    
 Ended June 30, 2001                                                  
---------------------                                                 
Balance at December                                                   
 31, 2000                     $ 996,791       $ -  $ (17,207)         
Comprehensive Income                                                  
 Net Income                      60,416         -          -  $60,416 
 Other Comprehensive Income,                                          
  Net of Tax                                                          
   Investment Securities              -         -          -   22,775 
   Foreign Currency Translation                                       
    Adjustment                        -         -          -   27,496 
   Pension Liability Adjustments      -         -          -     (159)
                                                             ---------
     Total Comprehensive Income                              $110,528 
                                                             =========
Common Stock Issued                                                   
  32,942 Profit Sharing Plan          -         -        545          
 416,413 Stock Option Plan         (381)      853      6,811          
  64,791 Dividend Reinvestment Plan   -         -      1,093          
   3,672 Directors' Restricted Shares                                 
          and Deferred Compensation                                   
          Plan                        -         -        262          
 741,000 Employees' Restricted
          Shares                      -   (17,891)         -          
  65,146 Hawaii Insurance Network     -         -          -          
Cash Dividends Paid             (28,790)        -          -          
-------------------------------------------------------------         
Balance at June 30,                                                   
 2001                       $ 1,028,036 $ (17,038)  $ (8,496)         
=============================================================         

Bank of Hawaii Corporation and subsidiaries                           
Consolidated Average Balances and Interest Rates - 
Taxable Equivalent Basis (Unaudited)                           Table 5
----------------------------------------------------------------------
                          Three Months Ended     Three Months Ended   
                             June 30, 2002         March 31, 2002    
                        Average  Income/ Yield/ Average Income/ Yield/
(dollars in millions)   Balance  Expense Rate   Balance Expense  Rate
----------------------------------------------------------------------
Earning Assets                                                        
 Interest Bearing                                                     
  Deposits             $ 1,310.0  $ 6.0  1.84% $ 1,154.7  $ 5.1  1.77%
 Funds Sold                173.3    0.8  1.74      237.3    1.0  1.69 
 Investment Portfolio                                                 
 -  Held-To-Maturity       328.6    5.0  6.06      368.5    5.3  5.72 
 -  Available for Sale   1,890.3   26.5  5.60    1,939.3   27.1  5.60 
 Loans Held For Sale        65.2    1.1  6.88      340.9    5.7  6.75 
 Net Loans and Lease                                                  
  Financing                                                           
 Domestic                                                             
 -  Commercial and                                                    
     Industrial          1,061.1   13.5  5.12    1,150.8   14.5  5.11 
 -  Construction           157.5    2.3  5.72      169.8    2.2  5.20 
 -  Mortgage             2,985.4   52.3  7.01    3,017.9   53.2  7.07 
 -  Installment            783.2   16.6  8.50      738.5   16.4  8.99 
 -  Lease Financing        502.1    6.6  5.25      492.0    6.6  5.46 
                      ------------------------------------------------
 Total Domestic Loans    5,489.3   91.3  6.66    5,569.0   92.9  6.72 
 Foreign                    14.1      -     -       14.3      -     - 
                      ------------------------------------------------
 Total Loans             5,503.4   91.3  6.65    5,583.3   92.9  6.71 
 Other                      99.2    1.3  5.64       88.4    1.3  6.12 
                      ------------------------------------------------
 Total Earning Assets    9,370.0  132.0  5.64    9,712.4  138.4  5.74 
Cash and Due From                                                     
 Banks                     341.8                   301.9              
Other Assets               367.1                   400.5              
                      -----------             -----------             
 Total Assets         $ 10,078.9              $ 10,414.8              
                      ===========             ===========             

Interest Bearing                                                      
 Liabilities                                                          
 Domestic Deposits                                                    
 -  Demand             $ 1,974.6    4.4  0.88  $ 1,935.0    4.3  0.92 
 -  Savings              1,164.0    4.5  1.57    1,037.0    3.9  1.52 
 -  Time                 1,732.0   12.9  2.98    1,909.4   14.8  3.13 
                      ------------------------------------------------
 Total Domestic                                                       
  Deposits               4,870.6   21.8  1.79    4,881.4   23.0  1.91 
 Foreign Deposits                                                     
 -  Time Due to Banks       37.3    0.1  1.47       80.2    0.6  3.10 
 -  Other Time and                                                    
     Savings                59.1    0.3  1.67      104.0    0.4  1.37 
                      ------------------------------------------------
 Total Foreign                                                        
  Deposits                  96.4    0.4  1.59      184.2    1.0  2.12 
                      ------------------------------------------------
 Total Interest                                                       
  Bearing Deposits       4,967.0   22.2  1.79    5,065.6   24.0  1.92 
 Short-Term Borrowings   1,475.9    8.8  2.39    1,738.7   11.2  2.61 
 Long-Term Debt            507.1    8.0  6.37      538.2    8.3  6.27 
                      ------------------------------------------------
 Total Interest                                                       
  Bearing Liabilities    6,950.0   39.0  2.25    7,342.5   43.5  2.40 
                      ------------------------------------------------
 Net Interest Income               93.0                    94.9       
  Interest Rate Spread                   3.39%                   3.34%
  Net Interest Margin                    3.97%                   3.93%
Non-Interest Bearing                                                  
 Demand Deposits                                                      
 -  Demand               1,565.6                 1,506.9              
 -  Foreign                    -                       -              
                      -----------             -----------             
 Total Non-Int Bearing                                                
  Demand Deposits        1,565.6                 1,506.9              
Other Liabilities          312.3                   301.9              
Shareholders' Equity     1,251.0                 1,263.5              
                      -----------             -----------             
Total Liabilities and                                                
 Shareholders' Equity $ 10,078.9              $ 10,414.8              
                      ===========             ===========             

Provision for Loan                                                    
 Losses                             3.3                     8.2       
Net Overhead                       41.5                    38.4       
                                 -------                 -------      
Income Before Income                                                  
 Taxes                             48.2                    48.3       
Provision for Income                                                  
 Taxes                             17.1                    17.1       
Tax-Equivalent                                                        
 Adjustment                         0.1                     0.1       
                                 -------                 -------      
Net Income                       $ 31.0                  $ 31.1       
                                 =======                 =======      


Bank of Hawaii Corporation and subsidiaries                           
Consolidated Average Balances and Interest Rates - 
Taxable Equivalent Basis (Unaudited)                          
----------------------------------------------------------------------
                          Three Months Ended(1)   Six Months Ended    
                             June 30, 2001          June 30, 2002
                         Average Income/ Yield/ Average Income/ Yield/
(dollars in millions)    Balance Expense Rate   Balance Expense  Rate
----------------------------------------------------------------------
Earning Assets                                                        
Interest Bearing                                                      
 Deposits                $ 414.3  $ 4.9  4.78% $ 1,232.8 $ 11.1  1.81%
 Funds Sold                120.3    1.4  4.51      205.1    1.8  1.71 
 Investment Portfolio                                                 
 -  Held-To-Maturity       565.0    9.2  6.51      348.6   10.2  5.88 
 -  Available for Sale   2,318.3   36.8  6.36    1,914.5   53.6  5.60 
 Loans Held For Sale       430.9    7.4  6.88      202.3    6.8  6.72 
 Net Loans and Lease                                                  
  Financing                                                           
 Domestic                                                             
 -  Commercial and                                                    
     Industrial          1,865.5   34.4  7.39    1,105.7   28.0  5.12 
 -  Construction           252.5    5.1  8.11      163.6    4.4  5.45 
 -  Mortgage             3,481.1   68.1  7.85    3,001.5  105.6  7.04 
 -  Installment            766.5   20.9 10.91      761.0   33.0  8.74 
 -  Lease Financing        545.3    8.5  6.22      497.1   13.2  5.35 
                      ------------------------------------------------
 Total Domestic Loans    6,910.9  137.0  7.95    5,528.9  184.2  6.69 
 Foreign                 1,136.9   19.2  6.80       14.3    0.1  1.66 
                      ------------------------------------------------
 Total Loans             8,047.8  156.2  7.79    5,543.2  184.3  6.68 
 Other                      77.1    1.3  7.00       93.8    2.7  5.86 
                      ------------------------------------------------
 Total Earning Assets   11,973.7  217.2  7.28    9,540.3  270.5  5.69 
Cash and Due From                                                     
 Banks                     367.6                   322.0              
Other Assets               655.1                   383.6              
                      -----------             -----------             
 Total Assets         $ 12,996.4              $ 10,245.9              
                      ===========             ===========             

Interest Bearing                                                      
 Liabilities                                                          
 Domestic Deposits                                                    
 -  Demand             $ 1,905.0    9.3  1.95  $ 1,954.9    8.7  0.90 
 -  Savings                698.8    3.7  2.14    1,100.8    8.4  1.54 
 -  Time                 2,654.1   37.3  5.63    1,811.1   27.7  3.08 
                      ------------------------------------------------
 Total Domestic                                                       
  Deposits               5,257.9   50.3  3.83    4,866.8   44.8  1.86 
 Foreign Deposits                                                     
 -  Time Due to Banks      317.4    3.5  4.45       77.8    0.7  1.94 
 -  Other Time and                                                    
     Savings               709.3    6.3  3.55       71.4    0.6  1.68 
                      ------------------------------------------------
 Total Foreign                                                        
  Deposits               1,026.7    9.8  3.83      149.2    1.3  1.82 
                      ------------------------------------------------
 Total Interest                                                       
  Bearing Deposits       6,284.6   60.1  3.83    5,016.0   46.1  1.86 
 Short-Term Borrowings   2,108.2   25.9  4.94    1,606.6   20.0  2.51 
 Long-Term Debt            864.5   14.5  6.71      522.6   16.4  6.32 
                      ------------------------------------------------
 Total Interest                                                       
  Bearing Liabilities    9,257.3  100.5  4.35    7,145.2   82.5  2.33 
                      ------------------------------------------------
 Net Interest Income              116.7                   188.0       
  Interest Rate Spread                   2.93%                   3.36%
  Net Interest Margin                    3.91%                   3.95%
Non-Interest Bearing                                                  
 Demand Deposits                                                      
 -  Demand               1,567.8                 1,536.4              
 -  Foreign                348.4                       -              
                      -----------             -----------             
 Total Non-Int Bearing                                                
  Demand Deposits        1,916.2                 1,536.4              
Other Liabilities          428.5                   307.1              
Shareholders' Equity     1,394.4                 1,257.2              
                      -----------             -----------             
Total Liabilities and                                                
 Shareholders' Equity $ 12,996.4              $ 10,245.9              
                      ===========             ===========             

Provision for Loan                                                    
 Losses                             6.4                    11.6       
Net Overhead                       63.3                    79.9       
                                 -------                 -------      
Income Before Income                                                  
 Taxes                             47.0                    96.5       
Provision for Income                                                  
 Taxes                             20.2                    34.3       
Tax-Equivalent                                                        
 Adjustment                         0.1                     0.1       
                                 -------                 -------      
Net Income                       $ 26.7                  $ 62.1       
                                 =======                 =======      

    (1) Adjusted to reflect the reclassification of other interest
income and certain average balances.
======================================================================

Bank of Hawaii Corporation and subsidiaries                           
Loan Portfolio Balances (Unaudited)                            Table 6
----------------------------------------------------------------------
                                 June 30  March 31  Dec. 31   June 30
(dollars in millions)              2002     2002      2001     2001 
----------------------------------------------------------------------
Domestic Loans                                                        
  Commercial                    $ 999.6 $ 1,120.5 $ 1,175.5 $ 1,778.0 
  Real Estate                                                         
    Construction                  148.6     161.4     169.6     246.0 
    Mortgage  -- Commercial       562.5     617.6     640.7     866.3 
              -- Residential    2,360.5   2,409.1   2,419.4   2,481.4 
  Installment                     807.4     759.3     729.7     762.3 
  Lease Financing                 500.9     504.7     493.4     550.3 
----------------------------------------------------------------------
   Total Domestic               5,379.5   5,572.6   5,628.3   6,684.3 
----------------------------------------------------------------------
  Foreign Loans                    29.0      28.7      24.2     933.5 
----------------------------------------------------------------------
   Total Loans                $ 5,408.5 $ 5,601.3 $ 5,652.5 $ 7,617.8 
======================================================================

Bank of Hawaii Corporation and subsidiaries                   Table 7
Consolidated Non-Performing Assets and Accruing Loans 
 Past Due 90 Days or More (Unaudited)                                 
----------------------------------------------------------------------
                       June 30   March 31   Dec.31   Sept 30   June 30
(dollars in millions)     2002      2002      2001      2001      2001
----------------------------------------------------------------------

Non-Accrual Loans                                                     
 Commercial            $ 22.3    $ 27.4    $ 18.9    $ 10.5    $ 11.8 
 Real Estate                                                          
  Construction            0.7       1.0       9.3       0.7       5.8 
  Mortgage - Commercial  17.4      15.1      16.3      12.8      14.4 
           - Residential 14.3      15.7      15.4      19.5      16.2 
 Installment                -       0.1       0.1       0.1       0.2 
 Lease Financing          6.9       4.4       0.8       1.0       0.4 
 Foreign                    -         -         -      17.2      18.5 
                     ------------------------------------------------
   Total Non-Accrual                                                  
    Loans                61.6      63.7      60.8      61.8      67.3 

Non-Accrual Loans Held                                                
 For Sale                   -       7.8       1.7       7.4      11.5 

Foreclosed Real Estate                                                
 Domestic                17.2      19.2      17.2      36.9      39.8 
 Foreign                    -         -         -       0.3       0.3 
                     ------------------------------------------------
   Total Foreclosed                                                   
     Real Estate         17.2      19.2      17.2      37.2      40.1 
                     ------------------------------------------------
   Total Non-Performing                                               
     Assets            $ 78.8    $ 90.7    $ 79.7   $ 106.4   $ 118.9 
                     ================================================

Accruing Loans Past Due                                               
 90 Days or More                                                      
  Commercial           $   -     $  0.2    $  0.1   $   0.1   $   0.2 
  Real Estate                                                         
   Mortgage - Commercial   -        1.2         -         -         - 
            - Residential 0.9       2.1       3.8       3.4       3.7 
 Installment              0.5       0.7       0.9       1.0       1.8 
 Lease Financing          0.1       0.1       0.1         -       0.1 
 Foreign                 -           -         -        0.8       0.4 
                        ----------------------------------------------
    Total Accruing and                                                
     Past Due          $  1.5    $  4.3    $  4.9   $   5.3   $   6.2 
                        ==============================================

Total Loans         $ 5,408.5 $ 5,601.3 $ 5,652.5 $ 6,766.6 $ 7,617.8 
                        ==============================================

----------------------------------------------------------------------
Ratio of Non-Accrual                                                  
 Loans to Total Loans    1.14%     1.14%     1.08%     0.91%    0.88%
----------------------------------------------------------------------
Ratio of Non-Performing                                               
 Assets to Total Loans,                                               
  Foreclosed Real Estate                                              
  and Non-Performing                                                  
  Loans Held for Sale     1.45%     1.61%     1.41%     1.56%    1.55%
----------------------------------------------------------------------
Ratio of Non-Performing                                               
 Assets and Accruing Loans 
 Past Due 90 Days or 
 More to Total Loans      1.48%     1.70%     1.50%     1.65%    1.64%
----------------------------------------------------------------------

Quarter to Quarter                                                    
 Changes in Non-Performing
 Assets                                                 
 Balance at Beginning of                                              
  Quarter               $ 90.7    $ 79.7   $ 106.4   $ 118.9  $ 119.5 

 Additions                20.5      36.4      43.8      23.2     23.8 

 Reductions                                                           
  Payments and Sales                                                  
   of Loans              (20.6)    (12.9)    (40.9)    (25.8)   (14.4)
  Return to Accrual       (6.2)     (6.3)     (3.6)     (0.9)    (2.5)
  Sales of                                                            
   Foreclosed Assets      (3.5)     (0.9)    (21.9)     (2.2)    (1.6)
  Charge-offs             (2.1)     (5.3)     (4.1)     (6.8)    (5.9)
                        ----------------------------------------------
 Total Reductions        (32.4)    (25.4)    (70.5)    (35.7)   (24.4)

                        ----------------------------------------------
  Balance at End of                                                   
   Quarter              $ 78.8    $ 90.7    $ 79.7   $ 106.4  $ 118.9 
                        ==============================================


Bank of Hawaii Corporation and subsidiaries                           
Consolidated Allowance for Loan and Lease Losses (Unaudited)   Table 8
----------------------------------------------------------------------
                                   Second      First       Second
                                   Quarter     Quarter     Quarter
(dollars in millions)               2002        2002         2001 
----------------------------------------------------------------------
Balance of Allowance for 
 Loan and Lease Losses                        
  Beginning of Period            $ 159.0      $ 159.0      $ 199.8 
  Loans Charged-Off                                    
   Commercial                       (2.4)        (7.3)        (8.9)
   Real Estate:                                        
    Construction                      -          (0.5)          - 
    Mortgage - Commercial           (0.4)          -          (1.6)
             - Residential          (1.3)        (1.4)        (1.7)
  Installment                       (2.9)        (3.9)        (4.2)
  Foreign                             -            -          (3.9)
  Lease Financing                   (0.5)          -            - 
                                   ---------------------------------
Total Charge-Offs                   (7.5)       (13.1)       (20.3)
Recoveries on Loans 
 Previously Charged-Off                            
  Commercial                         2.3          0.7          4.3 
  Real Estate:                                        
   Mortgage - Commercial             0.1          1.8          0.8 
            - Residential            0.3          0.3          0.3 
  Installment                        1.6          1.9          1.6 
  Foreign                           (0.1)         0.1          6.3 
  Lease Financing                     -            -           0.1 
                                   --------------------------------
Total Recoveries                     4.2          4.8         13.4 
                                   --------------------------------
Net Loan Charge-Offs                (3.3)        (8.3)        (6.9)
Provision for Loan and Lease Losses  3.3          8.3          6.4 
Foreign Currency Translation          -            -           0.5 
                                   --------------------------------
Balance at End of Period          $ 159.0     $ 159.0      $ 199.8 
                                   ================================

Average Loans Outstanding       $ 5,503.4   $ 5,583.3    $ 8,047.8 
Ratio of Net Charge-Offs to
 Average Loans                             
  Outstanding (annualized)           0.24%       0.60%        0.34%
Ratio of Allowance to 
 Loans and Leases                                
 Outstanding                         2.94%       2.84%        2.62%


Bank of Hawaii Corporation and subsidiaries                           
Consolidated Allowance for Loan and Lease Losses        
 (Unaudited)                                                          
----------------------------------------------------------------------
                                                   First Six Months
(dollars in millions)                             2002         2001 
----------------------------------------------------------------------

Balance of Allowance for
 Loan and Lease Losses                        
  Beginning of Period                            $ 159.0      $ 246.2 
  Loans Charged-Off                          
   Commercial                                       (9.7)       (84.4)
   Real Estate:                              
    Construction                                    (0.5)          - 
    Mortgage - Commercial                           (0.4)       (13.5)
             - Residential                          (2.7)        (4.2)
  Installment                                       (6.8)        (9.6)
  Foreign                                             -         (13.9)
  Lease Financing                                   (0.5)        (0.1)
                                                  --------------------
Total Charge-Offs                                  (20.6)      (125.7)
Recoveries on Loans Previously Charged-Off                            
 Commercial                                          3.0          7.0 
 Real Estate:                              
  Mortgage - Commercial                              1.9          1.1 
           - Residential                             0.6          0.5 
  Installment                                        3.5          3.4 
  Foreign                                             -           8.9 
  Lease Financing                                     -           0.2 
                                                  --------------------
Total Recoveries                                     9.0         21.1 
                                                  --------------------
Net Loan Charge-Offs                               (11.6)      (104.6)
Provision for Loan and Lease Losses                 11.6         58.9 
Foreign Currency Translation                          -          (0.7)
                                                  --------------------
Balance at End of Period                         $ 159.0      $ 199.8 
                                                  ====================

Average Loans Outstanding                      $ 5,543.2    $ 8,551.9 
Ratio of Net Charge-Offs to Average Loans                             
 Outstanding (annualized)                           0.42%        2.47%
Ratio of Allowance to Loans and 
 Leases Outstanding                                 2.94%        2.62%
======================================================================

Bank of Hawaii Corporation and subsidiaries                           
Quarterly Summary of Selected Consolidated
 Financial Data (Unaudited)                                    Table 9
----------------------------------------------------------------------

(dollars in millions except per share  June 30    March 31    Dec. 31
 amounts)                                2002       2002       2001 
----------------------------------------------------------------------

Balance Sheet Totals                                                  
Total Assets                          $ 9,823.3 $ 10,244.8 $ 10,627.8 
Net Loans                               5,249.5    5,442.4    5,493.5 
Deposits                                6,455.3    6,543.5    6,673.6 
Shareholders' Equity                    1,191.1    1,265.9    1,247.0 


Quarterly Operating Results                                           
Net Interest Income                      $ 92.9     $ 94.9    $ 106.1 
Provision for Loan and Lease Losses         3.3        8.3       14.5 
Non-Interest Income                        48.9       54.0       51.2 
Gain on Sales of Banking Operations,                                  
 Net of Venture Investment Losses             -          -       28.7 
Non-Interest Expense                       90.4       90.4      122.3 
Restructuring and Other Related Costs         -        2.0       18.5 
Net Income                                 31.0       31.1       26.3 

Basic Earnings Per Share                 $ 0.43     $ 0.42     $ 0.35 
Diluted Earnings Per Share               $ 0.42     $ 0.41     $ 0.34 

Return on Average Assets                   1.23%      1.21%      0.90%
Return on Average Equity                   9.94%      9.97%      8.14%
Efficiency Ratio                          63.71%     62.06%     75.73%


Continuing Business Operating Results (1)                             
Net Interest Income                      $ 92.9     $ 94.9     $ 93.8 
Provision for Loan and Lease Losses         3.3        8.3       16.6 
Non-Interest Income                        48.9       54.0       44.7 
Non-Interest Expense (2)                   90.4       90.4      100.2 
Net Income (2)                             31.0       32.3       21.3 

Diluted Earnings Per Share (2)           $ 0.42     $ 0.43     $ 0.28 

Return on Average Equity (2)               9.94%     10.37%      6.59%
Efficiency Ratio (2)                      63.71%     60.73%     72.36%

----------------------------------------------------------------------
Bank of Hawaii Corporation and subsidiaries                           
Quarterly Summary of Selected Consolidated
 Financial Data (Unaudited)                                    
(dollars in millions except per share   Sept. 30    June 30   March 31
 amounts)                                  2001       2001       2001 
----------------------------------------------------------------------

Balance Sheet Totals                                                  
Total Assets                         $ 11,944.2 $ 12,755.5 $ 13,710.5 
Net Loans                               6,583.5    7,418.0    8,224.6 
Deposits                                7,399.7    8,108.5    8,815.4 
Shareholders' Equity                    1,371.1    1,395.7    1,371.9 


Quarterly Operating Results                                           
Net Interest Income                     $ 111.7    $ 116.7    $ 125.2 
Provision for Loan and Lease Losses         0.9        6.4       52.5 
Non-Interest Income                        65.6       73.2       88.4 
Gain on Sales of Banking Operations,                                  
 Net of Venture Investment Losses          47.8       24.8       72.1 
Non-Interest Expense                      119.6      122.4      127.9 
Restructuring and Other Related Costs       3.0       38.9       44.4 
Net Income                                 31.1       26.7       33.7 

Basic Earnings Per Share                 $ 0.39     $ 0.33     $ 0.42 
Diluted Earnings Per Share               $ 0.37     $ 0.32     $ 0.42 

Return on Average Assets                   1.00%      0.83%      0.99%
Return on Average Equity                   8.88%      7.69%     10.42%
Efficiency Ratio                          54.46%     75.15%     60.33%


Continuing Business Operating                                         
 Results (1)                                                          
Net Interest Income                      $ 91.0     $ 87.8     $ 92.2 
Provision for Loan and Lease Losses         6.4        2.6       12.1 
Non-Interest Income                        53.7       54.9       54.6 
Non-Interest Expense (2)                   88.3       89.3       86.4 
Net Income (2)                             31.4       32.6       28.3 

Diluted Earnings Per Share (2)           $ 0.38     $ 0.39     $ 0.35 

Return on Average Equity (2)               8.96%      9.37%      8.76%
Efficiency Ratio (2)                      61.03%     62.58%     58.88%

    (1) Excludes divested businesses and restructuring and non-core
transactions. 2001 Quarterly information has been reclassified to
conform to December 31, 2001 presentation.

    (2) Adjusted to exclude goodwill amortization expense in 2001.

CONTACT:
Bank of Hawaii
Stafford Kiguchi, 808/537-8580 (Media)
pager: 877/849-5423
E-mail: skiguchi@boh.com
or
Cindy Wyrick, 808/537-8430 (Investor/Analyst)
E-mail: cwyrick@boh.com