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Bank of Hawaii Corporation Second Quarter 2004 Financial Results
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HONOLULU--(BUSINESS WIRE)--July 26, 2004--Bank of Hawaii Corporation (NYSE:BOH)

  • Diluted Earnings Per Share Increases to $0.79, Up 65 Percent
  • Net Income of $44.2 Million for the Quarter, Up 47 Percent
  • Additional Share Repurchase Authorization of $100 Million
  • Board of Directors Declares Dividend of $0.30 Per Share

Bank of Hawaii Corporation (NYSE:BOH) today reported diluted earnings per share of $0.79 for the second quarter of 2004, up $0.10 or 14.5 percent from $0.69 in the first quarter of 2004, and up $0.31 or 64.6 percent from $0.48 in the comparable quarter last year. Net income for the second quarter of 2004 was $44.2 million, up $4.4 million or 11.1 percent from $39.8 million in the previous quarter and up $14.2 million or 47.3 percent from $30.0 million reported in the same quarter last year.

Return on average assets for the second quarter of 2004 was 1.80 percent, up from 1.65 percent in the first quarter of 2004, and up from 1.27 percent in the second quarter of 2003. Return on average equity was 24.28 percent for the second quarter of 2004, up from 19.98 percent in the previous quarter and a significant improvement from 12.93 percent in the same quarter last year.

For six months ended June 30, 2004, net income was $84.0 million, up $24.2 million or 40.4 percent from net income of $59.8 million for the same period last year. Diluted earnings per share were $1.48 for the first half of 2004, an increase of 55.8 percent from diluted earnings per share of $0.95 for the first half of 2003. The year-to-date return on average assets was 1.73 percent, up from 1.29 percent for the same six months in 2003. The year-to-date return on average equity was 22.03 percent, up from 12.67 percent for the six months ended June 30, 2003.

"I am pleased to report that we continue to make solid progress in improving our operating efficiency, asset quality and customer service levels," said Michael E. O'Neill, Chairman and CEO. "The Hawaii economy continues to strengthen, and our leadership team remains keenly focused on growing our businesses in our key markets and achieving the goals of our new three-year plan."

In a separate news release issued today, Bank of Hawaii Corporation announced that the Board of Directors elected Allan Landon, President and COO, to succeed Michael E. O'Neill as Chairman and CEO on September 1, 2004. Mr. O'Neill will be leaving Bank of Hawaii.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the second quarter of 2004 was $95.9 million, down $0.2 million from net interest income of $96.1 million in the first quarter of 2004, and up $5.4 million from net interest income of $90.5 million in the second quarter of 2003. The increase from the previous year was largely the result of lower interest rates paid on deposits and a reduction in long-term debt. An analysis of the change in net interest income is included in Table 6.

The net interest margin was 4.17 percent for the second quarter of 2004, down 13 basis points from the net interest margin of 4.30 percent in the previous quarter and up 5 basis points from 4.12 percent in the same quarter last year. The decrease in the net interest margin compared to the previous quarter was largely due to a decrease in the average yield on the loan portfolio.

Credit quality continued to improve during the second quarter of 2004. The Company recognized a $3.5 million negative provision for loan and lease losses during the quarter and did not record a provision for the previous seven quarters. The allowance for loan and lease losses was reduced $2.3 million from March 31, 2004, reflecting the reduced credit risk profile.

Non-interest income was $54.8 million for the second quarter of 2004 compared to non-interest income of $48.8 million in the first quarter of 2004 and $50.7 million in the second quarter of 2003. The improvement from the previous quarter was largely due to a partnership distribution of $3.2 million, a gain of $2.5 million on the sale of land, and increased mortgage banking income. Growth in fee income, including annuity and brokerage fees, was partially offset by a seasonal decline in tax service income and service charges on deposits.

Non-interest expense for the second quarter of 2004 was $85.1 million, up $2.1 million from $83.0 million in the previous quarter and down $10.3 million or 10.8 percent from non-interest expense of $95.4 million in the second quarter of 2003. The increase from the previous quarter was largely the result of charges of $2.2 million to settle litigation and a contribution of $1.0 million to the Bank of Hawaii Charitable Foundation. Non-interest expense in the second quarter of 2003 included $10.1 million in systems replacement costs. Excluding these items, non-interest expense in the second quarter of 2004 was down $2.8 million or 3.3 percent from the same quarter last year.

The efficiency ratio was 56.5 percent for the second quarter of 2004, down from 57.3 percent in the first quarter of 2004. Excluding systems replacement costs, the efficiency ratio was 60.4 percent in the second quarter of 2003. For six months ended June 30, 2004, the efficiency ratio was 56.9 percent compared to 67.0 percent for the same period in 2003. Excluding systems replacement costs, the efficiency ratio was 60.7 percent for the first six months of last year.

The Company's business segments are defined as Retail Banking, Commercial Banking, Investment Services Group, and Treasury and Other Corporate. Results are determined based on the Company's internal financial management reporting process and organizational structure. Business segment performance details are summarized in Table 11a and 11b.

Asset Quality

Bank of Hawaii Corporation's credit quality remained strong during the second quarter of 2004. Non-performing assets declined to $21.2 million at the end of the second quarter of 2004, a decrease of $6.7 million, or 24.1 percent, from non-performing assets of $27.9 million at the end of the first quarter of 2004. Non-performing assets decreased $20.8 million, or 49.6 percent, compared to non-performing assets of $42.0 million at the end of the same quarter last year. At June 30, 2004, the ratio of non-performing assets to total loans and foreclosed real estate was 0.37 percent, down from 0.49 percent at March 31, 2004 and down from 0.77 percent at June 30, 2003.

Non-accrual loans were $16.3 million at June 30, 2004, a reduction of $7.2 million, or 30.6 percent, from $23.5 million at March 31, 2004 and down $16.4 million, or 50.2 percent, from $32.7 million at June 30, 2003. Non-accrual loans as a percentage of total loans were 0.28 percent at June 30, 2004, down from 0.41 percent at the end of the previous quarter and down from 0.60 percent at the end of the comparable quarter last year.

Net charge-offs were in a net recovery position of $1.2 million in the second quarter of 2004 as charge-offs of $8.8 million were more than offset by recoveries of $10.0 million. Net charge-offs in the first quarter of 2004 were $1.9 million, or 0.13 percent (annualized) of total average loans. Net charge-offs during the second quarter of 2003 were $2.1 million, or 0.15 percent (annualized) of total average loans. Net charge-offs for the first six months of 2004 were $0.7 million, or 0.02 percent (annualized) of total average loans compared to $4.9 million, or 0.18 percent (annualized) of total average loans for the same period last year.

The allowance for loan and lease losses was $124.9 million at June 30, 2004. The ratio of the allowance for loan and lease losses to total loans was 2.16 percent at June 30, 2004 compared with 2.23 percent at March 31, 2004 and 2.52 percent at the end of the same quarter last year.

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

Other Financial Highlights

Total assets decreased to $9.7 billion at June 30, 2004, compared to total assets of $10.0 billion at March 31, 2004 and were slightly up from $9.6 billion at June 30, 2003. The decrease in total assets from the previous quarter was primarily due to a lower level of funding resulting from securities sold under agreements to repurchase by public entities.

Total deposits at June 30, 2004 were $7.5 billion, up from total deposits of $7.4 billion at March 31, 2004 and up from total deposits of $7.1 billion at June 30, 2003 due to continued strong growth in demand and savings deposits.

During the second quarter of 2004, Bank of Hawaii Corporation repurchased 2.1 million shares of common stock at a total cost of $92.9 million under the share repurchase program. The average cost per share was $43.91 during the quarter. From the beginning of the share repurchase program in July 2001 through June 30, 2004, the Company repurchased a total of 33.2 million shares and returned a total of $1,005.7 million to the shareholders at an average cost of $30.27 per share.

The Company's Board of Directors has increased the authorization under the share repurchase program by an additional $100 million of common stock. This new authorization, combined with the previously announced authorizations of $1,050 million, brings the total repurchase authority to $1,150 million. From July 1, 2004 through July 23, 2004, the Company repurchased an additional 0.2 million shares of common stock at an average cost of $45.50 per share. Remaining buyback authority was $137.0 million at July 23, 2004.

The Company's capital and liquidity remain strong. At June 30, 2004, the Tier 1 leverage ratio was 7.16 percent compared to 7.88 percent at March 31, 2004 and 9.29 percent at June 30, 2003.

The Company's Board of Directors has declared a quarterly cash dividend of $0.30 per share on the Company's outstanding shares. The dividend will be payable on September 15, 2004 to shareholders of record at the close of business on August 30, 2004.

Economic Outlook

Tourism in Hawaii may reach record levels during the summer of 2004. Total visitor counts were up 9.0 percent year-to-date through May 2004 and up 13.0 percent in June compared to last year. Growth in tourism is a result of the continued strength in domestic visitors to Hawaii and increased international visitors, partially due to the improving Japan economy and favorable yen/dollar exchange rates. Hotel revenues rose 6.0 percent, matched by growth in overall business receipts, during the State fiscal year ending in June 2004.

Hawaii's seasonally-adjusted unemployment rate declined to 3.0 percent in May, one percentage point below a year ago, as labor markets tightened. Seasonally-adjusted payrolls grew at a 1.7 percent annualized rate in the most recent six-month period, and were up 2.1 percent on a year-over-year basis in May 2004.

Hawaii real estate investment continues to dominate near-term growth prospects. Home sales volumes in Honolulu have grown at annual rates of more than 15.0 percent since 1997 and record volumes are expected to be reached this summer. Military housing privatization is anticipated to double annual homebuilding on Oahu beginning in the fourth quarter of 2004. Overall, construction employment is expected to return to early-1990s cyclical peaks.

Honolulu's semiannual inflation rate for the first half of 2004 is expected to repeat the 3.0 percent recorded in the second half of 2003, up from 1.0 percent a year earlier. Strong China, Eastern Asia and Southern California economies, and recoveries in Northern California and the Pacific Northwest, put Hawaii at the center of regional economic strength once again.

Earnings Outlook

Bank of Hawaii Corporation currently anticipates net income for the full year of 2004 will be approximately $163 million to $167 million. Based on present conditions, the Company does not expect to record a provision for loan and lease losses for the remainder of 2004. However, the actual amount of the provision for loan and lease losses depends on determinations of credit risk that are made near the end of each quarter. Earnings per share and return on equity projections continue to be dependent upon the terms and timing of share repurchases.

Conference Call Information

The Company will review its second quarter 2004 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 800-299-9630 in the United States or 617-786-2904 for international callers. No confirmation code is required to access the call. A replay will be available for one week beginning at 10:00 a.m. Hawaii Time (4:00 p.m. Eastern Time) on Monday, July 26, 2004 by calling 888-286-8010 in the United States or 617-801-6888 for international callers and entering the number 11335073 when prompted. A replay of the presentation will also be available via the Investor Relations link of the Company's web site.

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

Forward-Looking Statements

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

Bank of Hawaii Corporation and Subsidiaries
Highlights  (Unaudited)                                        Table 1
----------------------------------------------------------------------
(dollars in thousands
 except per share amounts)  Three Months Ended    Six Months Ended
                                 June 30,             June 30,
Earnings Highlights and
 Performance Ratios          2004      2003       2004        2003
--------------------------- ------------------------------------------

Net Income                  $44,232   $30,034     $84,031     $59,835
Basic Earnings Per Share       0.84      0.50        1.57        0.99
Diluted Earnings Per Share     0.79      0.48        1.48        0.95
Cash Dividends               15,804    11,370      32,222      22,932
Net Income to Average Total
 Assets (ROA)                  1.80%     1.27%       1.73%       1.29%
Net Income to Average
 Shareholders' Equity (ROE)   24.28%    12.93%      22.03%      12.67%
Net Interest Margin            4.17%     4.12%       4.23%       4.21%
Efficiency Ratio (1)          56.49%    67.55%      56.89%      67.01%
Efficiency Ratio excluding
 System Replacement Costs     56.49%    60.39%      56.89%      60.68%


----------------------------------------------------------------------

Statement of Condition Highlights and                 June 30,
 Performance Ratios                               2004        2003
---------------------------------------------- -----------------------

Total Assets                                   $9,688,769  $9,550,934
Net Loans                                       5,662,410   5,333,896
Total Deposits                                  7,469,288   7,140,849
Total Shareholders' Equity                        699,438     913,010

Book Value Per Common Share                        $13.34      $15.50
Allowance / Loans and
 Leases Outstanding                                  2.16%       2.52%
Average Equity / Average
 Assets                                              7.84%      10.16%
Employees (FTE)                                     2,683       2,879
Branches and offices                                   89          91

Market Price Per Share of
 Common Stock for the
 Quarter Ended:
                                      Closing      $45.22      $33.15
                                      High         $46.84      $35.90
                                      Low          $40.97      $30.75

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


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)                 Table 2
----------------------------------------------------------------------
(dollars in thousands    Three Months Ended       Six Months Ended
 except per share             June 30,                June 30,
 amounts)                 2004        2003        2004        2003
----------------------------------------------------------------------
Interest Income
  Interest and Fees on
   Loans and Leases       $80,346     $85,954    $161,774    $171,727
  Income on Investment
   Securities - Held
   to Maturity              6,711       3,083      13,687       5,366
  Income on Investment
   Securities -
   Available for Sale      21,745      19,815      42,591      42,278
  Deposits                  1,646       1,161       2,877       2,468
  Funds Sold                  177         822         594       1,586
  Other                       865       1,016       1,723       2,205
----------------------------------------------------------------------
Total Interest Income     111,490     111,851     223,246     225,630
----------------------------------------------------------------------
Interest Expense
  Deposits                  8,560      13,309      17,760      27,756
  Securities Sold
   Under Agreements to
   Repurchase               2,222       2,391       4,148       4,633
  Funds Purchased             506         219         737         424
  Short-Term
   Borrowings                  13          25          28          49
  Long-Term Debt            4,340       5,422       8,693      11,283
----------------------------------------------------------------------
Total Interest Expense     15,641      21,366      31,366      44,145
----------------------------------------------------------------------
Net Interest Income        95,849      90,485     191,880     181,485
Provision for Loan and
 Lease Losses              (3,500)          -      (3,500)          -
----------------------------------------------------------------------
Net Interest Income
 After Provision for
 Loan and Lease Losses     99,349      90,485     195,380     181,485
----------------------------------------------------------------------
Non-Interest Income
  Trust and Asset
   Management              12,995      12,545      26,859      25,726
  Mortgage Banking          2,808       6,061       4,785       6,344
  Service Charges on
   Deposit Accounts         9,540       8,645      19,490      17,595
  Fees, Exchange, and
   Other Service
   Charges                 14,243      13,473      27,482      26,462
  Investment
   Securities Gains
   (Losses)                   (37)        587         (37)      1,170
  Insurance                 3,303       3,015       6,946       6,095
  Other                    11,996       6,413      18,165      12,100
----------------------------------------------------------------------
Total Non-Interest
 Income                    54,848      50,739     103,690      95,492
----------------------------------------------------------------------
Non-Interest Expense
  Salaries and
   Benefits                46,689      47,711      92,690      94,140
  Net Occupancy
   Expense                  9,543       9,628      18,929      19,241
  Net Equipment
   Expense                  5,799       9,208      11,763      18,956
  Information
   Technology Systems
   Replacement Project          -      10,105           -      17,522
  Other                    23,094      18,742      44,765      35,735
----------------------------------------------------------------------
Total Non-Interest
 Expense                   85,125      95,394     168,147     185,594
----------------------------------------------------------------------
Income Before Income
 Taxes                     69,072      45,830     130,923      91,383
Provision for Income
 Taxes                     24,840      15,796      46,892      31,548
----------------------------------------------------------------------
Net Income                $44,232     $30,034     $84,031     $59,835
======================================================================
Basic Earnings Per
 Share                      $0.84       $0.50       $1.57       $0.99
Diluted Earnings Per
 Share                      $0.79       $0.48       $1.48       $0.95
Dividends Declared Per
 Share                      $0.30       $0.19       $0.60       $0.38
Basic Weighted Average
 Shares                52,491,874  59,566,970  53,389,261  60,425,943
Diluted Weighted
 Average Shares        55,662,415  62,301,337  56,710,653  62,907,697
======================================================================


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition                           Table 3
----------------------------------------------------------------------
                                     June 30,  December 31, June 30,
(dollars in thousands)                 2004       2003        2003
----------------------------------------------------------------------
                                    (Unaudited)            (Unaudited)
Assets
Interest-Bearing Deposits             $179,680    $154,735   $307,552
Investment Securities - Held to
 Maturity (Market Value of $663,534,
 $720,699, and $555,878)               679,382     727,233    548,719
Investment Securities - Available
 for Sale                            2,275,272   1,991,116  2,140,607
Funds Sold                                   -           -    250,000
Loans Held for Sale                      9,565       9,211     71,892
Loans and Leases                     5,787,314   5,757,175  5,471,870
   Allowance for Loan and Lease
    Losses                            (124,904)   (129,080)  (137,974)
----------------------------------------------------------------------
     Net Loans                       5,662,410   5,628,095  5,333,896
----------------------------------------------------------------------
Total Earning Assets                 8,806,309   8,510,390  8,652,666
----------------------------------------------------------------------
Cash and Non-Interest-Bearing
 Deposits                              339,486     363,495    297,868
Premises and Equipment                 149,128     160,005    165,542
Customers' Acceptance Liability          1,213       1,707      1,371
Accrued Interest Receivable             36,378      32,672     35,849
Foreclosed Real Estate                   4,889       4,377      9,285
Mortgage Servicing Rights               20,819      22,178     24,841
Goodwill                                36,216      36,216     36,216
Other Assets                           294,331     330,607    327,296
----------------------------------------------------------------------
Total Assets                        $9,688,769  $9,461,647 $9,550,934
======================================================================
Liabilities
Deposits
   Non-Interest-Bearing Demand      $1,939,580  $1,933,928 $1,843,750
   Interest-Bearing Demand           1,464,207   1,356,330  1,161,409
   Savings                           2,976,108   2,833,379  2,754,607
   Time                              1,089,393   1,209,142  1,381,083
----------------------------------------------------------------------
Total Deposits                       7,469,288   7,332,779  7,140,849
----------------------------------------------------------------------
Securities Sold Under Agreements to
 Repurchase                            687,816     472,757    699,256
Funds Purchased                        139,055     109,090     90,200
Short-Term Borrowings                   11,055      12,690     22,424
Current Maturities of Long-Term Debt    80,000      96,505     34,000
Banker's Acceptances Outstanding         1,213       1,707      1,371
Retirement Benefits Payable             62,821      61,841     62,678
Accrued Interest Payable                 7,169       7,483      9,755
Taxes Payable and Deferred Taxes       225,989     207,101    196,868
Other Liabilities                       87,325     138,999     81,988
Long-Term Debt                         217,600     227,563    298,535
----------------------------------------------------------------------
Total Liabilities                    8,989,331   8,668,515  8,637,924
----------------------------------------------------------------------
Shareholders' Equity
Common Stock ($.01 par value);
 authorized 500,000,000 shares;
 issued / outstanding: June 2004 -
 81,711,599 / 52,426,010, December
 2003 - 81,647,729 / 54,928,480,
 June 2003 - 81,588,394 / 58,896,230       813         807        807
Capital Surplus                        403,150     391,701    386,565
Accumulated Other Comprehensive
 Income (Loss)                         (27,258)     (5,711)    12,412
Retained Earnings                    1,251,689   1,199,077  1,151,623
Deferred Stock Grants                   (9,391)     (8,309)    (8,168)
Treasury Stock, at Cost (Shares:
 June 2004 - 29,285,589, December
 2003 - 26,719,249, June 2003 -
 22,692,164)                          (919,565)   (784,433)  (630,229)
----------------------------------------------------------------------
Total Shareholders' Equity             699,438     793,132    913,010
----------------------------------------------------------------------
Total Liabilities and Shareholders'
 Equity                             $9,688,769  $9,461,647 $9,550,934
======================================================================


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

Balance at December 31, 2003     $793,132    $807   $391,701  $(5,711)
Comprehensive Income:
  Net Income                       84,031       -          -        -
  Other Comprehensive Income,
   Net of Tax:
    Change in Unrealized Gains
     and Losses on Investment
     Securities                   (21,547)      -          -  (21,547)
  Total Comprehensive Income

Common Stock Issued under Stock
 Plans and Related Tax Benefits
 (908,502 shares)                  32,028       6     11,449        -
Treasury Stock Purchased
 (3,527,779 shares)              (155,984)      -          -        -
Cash Dividends Paid               (32,222)      -          -        -
----------------------------------------------------------------------
Balance at June 30, 2004         $699,438    $813   $403,150 $(27,258)
======================================================================

Balance at December 31, 2002   $1,015,759    $806   $372,192  $11,659
Comprehensive Income:
  Net Income                       59,835       -          -        -
  Other Comprehensive Income,
   Net of Tax:
    Change in Unrealized Gains
     and Losses on Investment
     Securities                       753       -          -      753
  Total Comprehensive Income

Common Stock Issued under Stock
 Plans and Related Tax Benefits
 (992,802 shares)                  21,785       1     14,373        -
Treasury Stock Purchased
 (5,107,779 shares)              (162,190)      -          -        -
Cash Dividends Paid               (22,932)      -          -        -
----------------------------------------------------------------------
Balance at June 30, 2003         $913,010    $807   $386,565  $12,412
======================================================================

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

Balance at December 31, 2003   $1,199,077 $(8,309) $(784,433)
Comprehensive Income:
  Net Income                       84,031       -          -  $84,031
  Other Comprehensive Income,
   Net of Tax:
    Change in Unrealized Gains
     and Losses on Investment
     Securities                         -       -          -  (21,547)
                                                             ---------
  Total Comprehensive Income                                  $62,484
                                                             =========

Common Stock Issued under Stock
 Plans and Related Tax Benefits
 (908,502 shares)                     803  (1,082)    20,852
Treasury Stock Purchased
 (3,527,779 shares)                     -       -   (155,984)
Cash Dividends Paid               (32,222)      -          -
-------------------------------------------------------------
Balance at June 30, 2004       $1,251,689 $(9,391) $(919,565)
=============================================================

Balance at December 31, 2002   $1,115,910 $(1,424) $(483,384)
Comprehensive Income:
  Net Income                       59,835       -          -  $59,835
  Other Comprehensive Income,
   Net of Tax:
    Change in Unrealized Gains
     and Losses on Investment
     Securities                         -       -          -      753
                                                             ---------
  Total Comprehensive Income                                  $60,588
                                                             =========

Common Stock Issued under Stock
 Plans and Related Tax Benefits
 (992,802 shares)                  (1,190) (6,744)    15,345
Treasury Stock Purchased
 (5,107,779 shares)                     -       -   (162,190)
Cash Dividends Paid               (22,932)      -          -
-------------------------------------------------------------
Balance at June 30, 2003       $1,151,623 $(8,168) $(630,229)
=============================================================


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, 2004         March 31, 2004
                         Average Income/ Yield/ Average Income/ Yield/
(dollars in millions)    Balance Expense Rate   Balance Expense Rate
----------------------------------------------------------------------
Earning Assets
Interest-Bearing
 Deposits                 $408.8   $1.6   1.62%  $249.6   $1.2   1.98%
Funds Sold                  71.3    0.2   0.99    168.9    0.4   0.99
Investment Securities
  Held to Maturity         709.8    6.8   3.80    719.6    7.0   3.90
  Available for Sale     2,148.9   21.7   4.05  1,988.5   20.8   4.20
Loans Held for Sale         20.7    0.3   5.54     15.4    0.2   5.33
Loans and Leases
  Commercial and
   Industrial              828.0   10.2   4.97    844.4   10.1   4.81
  Construction             100.4    0.9   3.80    100.4    1.1   4.31
  Commercial Mortgage      638.9    8.6   5.39    634.1    8.6   5.45
  Residential Mortgage   2,281.8   32.2   5.65  2,317.5   33.3   5.75
  Installment              700.4   14.5   8.34    651.0   14.3   8.84
  Home Equity              534.6    6.1   4.63    489.2    5.8   4.75
  Purchased Home Equity    178.8    1.9   4.16    204.9    2.7   5.18
  Lease Financing          510.1    5.6   4.38    500.9    5.4   4.33
----------------------------------------------------------------------
Total Loans and Leases   5,773.0   80.0   5.56  5,742.4   81.3   5.68
----------------------------------------------------------------------
Other                       78.1    0.9   4.45     77.5    0.9   4.45
----------------------------------------------------------------------
Total Earning Assets     9,210.6  111.5   4.86  8,961.9  111.8   5.00
----------------------------------------------------------------------
Cash and Non-Interest-
 Bearing Deposits          306.3                  327.6
Other Assets               376.4                  388.4
                        ---------              ---------
Total Assets            $9,893.3               $9,677.9
                        =========              =========

Interest-Bearing
 Liabilities
Interest-Bearing
 Deposits
  Demand                $1,390.2    0.6   0.17 $1,370.0    0.5   0.15
  Savings                2,911.5    3.1   0.43  2,871.6    3.3   0.46
  Time                   1,129.5    4.9   1.74  1,188.8    5.4   1.83
----------------------------------------------------------------------
Total Interest-Bearing
 Deposits                5,431.2    8.6   0.63  5,430.4    9.2   0.68
----------------------------------------------------------------------
Short-Term Borrowings    1,082.5    2.7   1.02    862.3    2.2   1.01
Long-Term Debt             317.3    4.3   5.48    320.9    4.3   5.44
----------------------------------------------------------------------
Total Interest-Bearing
 Liabilities             6,831.0   15.6   0.92  6,613.6   15.7   0.96
----------------------------------------------------------------------
Net Interest Income               $95.9                  $96.1
                                 =======                =======
  Interest Rate Spread                    3.94%                  4.04%
  Net Interest Margin                     4.17%                  4.30%
Non-Interest-Bearing
 Demand Deposits         1,940.2                1,889.5
Other Liabilities          389.4                  373.6
Shareholders' Equity       732.7                  801.2
                        ---------              ---------
Total Liabilities and
 Shareholders' Equity   $9,893.3               $9,677.9
                        =========              =========

                          Three Months Ended      Six Months Ended
                             June 30, 2003          June 30, 2004
                         Average Income/ Yield/ Average Income/ Yield/
(dollars in millions)    Balance Expense Rate   Balance Expense Rate
----------------------------------------------------------------------
Earning Assets
Interest-Bearing
 Deposits                 $212.4   $1.2   2.19%  $329.2   $2.8   1.76%
Funds Sold                 267.3    0.9   1.23    120.1    0.6   0.99
Investment Securities
  Held to Maturity         324.8    3.1   3.85    714.8   13.8   3.85
  Available for Sale     2,316.9   19.8   3.42  2,068.7   42.5   4.12
Loans Held for Sale         81.6    1.1   5.43     18.1    0.5   5.45
Loans and Leases
  Commercial and
   Industrial              834.6   10.0   4.81    836.2   20.3   4.89
  Construction              83.0    0.9   4.50    100.4    2.0   4.05
  Commercial Mortgage      682.5   10.1   5.93    636.5   17.2   5.42
  Residential Mortgage   2,295.1   37.3   6.50  2,299.6   65.5   5.70
  Installment              535.6   13.6  10.18    675.7   28.8   8.58
  Home Equity              442.7    5.6   5.06    511.9   11.9   4.68
  Purchased Home Equity    162.3    2.0   4.96    191.8    4.6   4.70
  Lease Financing          482.6    5.3   4.42    505.5   11.0   4.35
----------------------------------------------------------------------
Total Loans and Leases   5,518.4   84.8   6.16  5,757.6  161.3   5.62
----------------------------------------------------------------------
Other                       75.3    1.0   5.41     77.8    1.8   4.45
----------------------------------------------------------------------
Total Earning Assets     8,796.7  111.9   5.09  9,086.3  223.3   4.93
----------------------------------------------------------------------
Cash and Non-Interest-
 Bearing Deposits          325.6                  316.9
Other Assets               385.9                  382.4
                        ---------              ---------
Total Assets            $9,508.2               $9,785.6
                        =========              =========

Interest-Bearing
 Liabilities
Interest-Bearing
 Deposits
  Demand                $1,169.4    0.7   0.25 $1,380.1    1.1   0.16
  Savings                2,744.1    4.5   0.65  2,891.6    6.4   0.44
  Time                   1,427.1    8.2   2.28  1,159.1   10.3   1.79
----------------------------------------------------------------------
Total Interest-Bearing
 Deposits                5,340.6   13.4   1.00  5,430.8   17.8   0.66
----------------------------------------------------------------------
Short-Term Borrowings      810.2    2.6   1.30    972.4    4.9   1.02
Long-Term Debt             371.5    5.4   5.84    319.1    8.6   5.46
----------------------------------------------------------------------
Total Interest-Bearing
 Liabilities             6,522.3   21.4   1.31  6,722.3   31.3   0.94
----------------------------------------------------------------------
Net Interest Income               $90.5                 $192.0
                                 =======                =======
  Interest Rate Spread                    3.78%                  3.99%
  Net Interest Margin                     4.12%                  4.23%
Non-Interest-Bearing
 Demand Deposits         1,695.3                1,914.8
Other Liabilities          358.7                  381.5
Shareholders' Equity       931.9                  767.0
                        ---------              ---------
Total Liabilities and
 Shareholders' Equity   $9,508.2               $9,785.6
                        =========              =========


Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable
 Equivalent Basis (Unaudited)                                  Table 6
----------------------------------------------------------------------
                                   Three Months Ended June 30, 2004
                                       Compared to March 31, 2004
(dollars in millions)              Volume (1)   Rate (1)      Total
----------------------------------------------------------------------

Change in Interest Income:
Interest-Bearing Deposits                $0.6        $(0.2)      $0.4
Funds Sold                               (0.2)           -       (0.2)
Investment Securities
   Held to Maturity                         -         (0.2)      (0.2)
   Available for Sale                     1.6         (0.7)       0.9
Loans Held for Sale                       0.1            -        0.1
Loans and Leases
   Commercial and Industrial             (0.2)         0.3        0.1
   Construction                             -         (0.2)      (0.2)
   Commercial Mortgage                    0.1         (0.1)         -
   Residential Mortgage                  (0.5)        (0.6)      (1.1)
   Installment                            1.0         (0.8)       0.2
   Home Equity                            0.5         (0.2)       0.3
   Purchased Home Equity                 (0.3)        (0.5)      (0.8)
   Lease Financing                        0.1          0.1        0.2
----------------------------------------------------------------------
Total Loans and Leases                    0.7         (2.0)      (1.3)
----------------------------------------------------------------------
Total Change in Interest Income           2.8         (3.1)      (0.3)
----------------------------------------------------------------------

Change in Interest Expense:
Interest-Bearing Deposits
   Demand                                   -          0.1        0.1
   Savings                                  -         (0.2)      (0.2)
   Time                                  (0.2)        (0.3)      (0.5)
----------------------------------------------------------------------
Total Interest-Bearing Deposits          (0.2)        (0.4)      (0.6)
----------------------------------------------------------------------
Short-Term Borrowings                     0.5            -        0.5
----------------------------------------------------------------------
Total Change in Interest Expense          0.3         (0.4)      (0.1)
----------------------------------------------------------------------

Change in Net Interest Income            $2.5        $(2.7)     $(0.2)
======================================================================

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


Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits (Unaudited)                              Table 7
----------------------------------------------------------------------
                               Three Months Ended   Six Months Ended
                                    June 30,            June 30,
(dollars in thousands)           2004      2003      2004      2003
----------------------------------------------------------------------

Salaries                        $27,904   $29,783   $55,108   $58,297
Incentive Compensation            3,260     2,993     7,076     6,584
Stock Based Compensation          3,233     2,206     6,129     3,324
Commission Expense                2,284     2,925     3,911     5,412
Retirement and Other Benefits     4,214     4,091     8,571     8,542
Payroll Taxes                     3,103     2,708     6,533     6,157
Medical, Dental, and Life
 Insurance                        2,136     1,679     4,240     3,749
Separation Expense                  555     1,326     1,122     2,075
----------------------------------------------------------------------
Total Salaries and Benefits     $46,689   $47,711   $92,690   $94,140
======================================================================


Bank of Hawaii Corporation and Subsidiaries
Loan Portfolio Balances (Unaudited)                            Table 8
----------------------------------------------------------------------
(dollars in                 June 30,  March 31,  Dec. 31,   June 30,
 thousands)                  2004       2004       2003       2003
----------------------------------------------------------------------
Domestic Loans
 Commercial
  Commercial
   and
   Industrial               $776,815   $793,293   $816,246   $808,503
  Commercial
   Mortgage                  643,382    650,566    639,354    689,759
  Construction                98,916     91,002    101,321     83,583
  Lease
   Financing                 447,673    442,590    435,934    416,920
----------------------------------------------------------------------
 Total
  Commercial               1,966,786  1,977,451  1,992,855  1,998,765
----------------------------------------------------------------------
 Consumer
  Residential
   Mortgage                2,257,624  2,254,654  2,320,410  2,222,003
  Home Equity                559,225    510,378    467,019    450,273
  Purchased
   Home Equity               162,730    191,066    212,514    145,588
  Other
   Consumer                  721,386    671,893    658,831    554,795
  Lease
   Financing                  34,676     34,816     35,320     33,972
----------------------------------------------------------------------
 Total Consumer            3,735,641  3,662,807  3,694,094  3,406,631
----------------------------------------------------------------------
Total Domestic
 Loans                     5,702,427  5,640,258  5,686,949  5,405,396
----------------------------------------------------------------------
Foreign Loans                 84,887     74,738     70,226     66,474
----------------------------------------------------------------------
Total Loans and
 Leases                   $5,787,314 $5,714,996 $5,757,175 $5,471,870
======================================================================


Selected Concentrations of Credit Exposure (Unaudited)
----------------------------------------------------------------------
                         June 30, 2004           Dec. 31,   June 30,
                                                 2003 (1)   2003 (1)
(dollars in    Outstanding  Unused      Total      Total      Total
 thousands)               Commitments  Exposure   Exposure   Exposure
----------------------------------------------------------------------

Air
 Transportation
 United States
  Regional
  Passenger
  Carriers        $45,308    $13,183    $58,491    $59,231    $59,702
 United States
  National
  Passenger
  Carriers         37,581          -     37,581     37,259     37,557
 Passenger
  Carriers
  Based Outside
  United States    30,325          -     30,325     31,549     31,794
 Cargo Carriers    14,122          -     14,122     14,405     14,739
----------------------------------------------------------------------
Total Air
 Transportation  $127,336    $13,183   $140,519   $142,444   $143,792
======================================================================

Guam
 Hotel            $15,614         $-    $15,614    $17,733    $42,806
 Other
  Commercial      146,872     42,441    189,313    184,129    183,765
 Consumer         306,002     12,075    318,077    288,831    265,851
----------------------------------------------------------------------
Total Guam       $468,488    $54,516   $523,004   $490,693   $492,422
======================================================================

Syndicated
 Exposure        $265,908   $636,293   $902,201   $912,896   $930,118
======================================================================

Other Large
 Borrowers (2)    $62,734   $216,048   $278,782   $336,748   $372,924
======================================================================

Exposure includes loans, leveraged leases and operating leases.

(1) For three borrowers, reclassifications have occurred between
    Regional and National Carriers. Syndicated Exposure has been
    restated to include a purchased participation.

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


Bank of Hawaii Corporation and Subsidiaries
Consolidated Non-Performing Assets and Accruing Loans Past
 Due 90 Days or More (Unaudited)                               Table 9
----------------------------------------------------------------------
(dollars in     June 30,   March 31,  Dec. 31,   Sept. 30,  June 30,
 thousands)       2004       2004       2003       2003       2003
----------------------------------------------------------------------

Non-Performing
 Assets
Non-Accrual
 Loans
 Commercial
  Commercial
   and
   Industrial        $680     $6,009     $6,015     $7,856     $8,832
  Commercial
   Mortgage         5,649      7,388      9,337     10,977     11,216
  Lease
   Financing        1,948      1,962      2,181      2,388      2,423
----------------------------------------------------------------------
 Total
  Commercial        8,277     15,359     17,533     21,221     22,471
----------------------------------------------------------------------
 Consumer
  Residential
   Mortgage         7,688      7,685      9,354      9,669     10,196
  Home Equity         306        406        460        497          -
----------------------------------------------------------------------
 Total Consumer     7,994      8,091      9,814     10,166     10,196
----------------------------------------------------------------------
Total Non-
 Accrual Loans     16,271     23,450     27,347     31,387     32,667
----------------------------------------------------------------------
Foreclosed Real
 Estate             4,889      4,416      4,377      8,757      9,285
----------------------------------------------------------------------
Total Non-
 Performing
 Assets           $21,160    $27,866    $31,724    $40,144    $41,952
======================================================================

Accruing Loans
 Past Due 90
 Days or More
 Commercial
  Commercial
   and
   Industrial         $19       $707       $725       $695       $523
  Commercial
   Mortgage           693        702          -          -          -
  Lease
   Financing            -          -        117          -          -
----------------------------------------------------------------------
 Total
  Commercial          712      1,409        842        695        523
----------------------------------------------------------------------
 Consumer
  Residential
   Mortgage           698        595      1,430      2,027      1,817
  Home Equity           -          -          -          -         84
  Purchased
   Home Equity         32        107          -        107         98
  Other
   Consumer         1,142      1,180      1,210      1,059        368
  Lease
   Financing           57          -          -          -         19
----------------------------------------------------------------------
 Total Consumer     1,929      1,882      2,640      3,193      2,386
----------------------------------------------------------------------
Total Accruing
 and Past Due      $2,641     $3,291     $3,482     $3,888     $2,909
======================================================================

Total Loans and
 Leases        $5,787,314 $5,714,996 $5,757,175 $5,570,405 $5,471,870
======================================================================

Ratio of Non-
 Accrual Loans
 to Total Loans      0.28%      0.41%      0.48%      0.56%      0.60%
----------------------------------------------------------------------


Ratio of Non-
 Performing
 Assets to
 Total Loans
 and Foreclosed
 Real Estate         0.37%      0.49%      0.55%      0.72%      0.77%
----------------------------------------------------------------------


Ratio of Non-
 Performing
 Assets and
 Accruing Loans
 Past Due 90
 Days or More
 to Total Loans      0.41%      0.55%      0.61%      0.79%      0.82%
----------------------------------------------------------------------

Quarter to
 Quarter
 Changes in
 Non-Performing
 Assets
Balance at
 Beginning of
 Quarter          $27,866    $31,724    $40,144    $41,952    $44,217
 Additions          3,909      3,293      2,340      3,199     11,603
 Reductions
  Payments         (4,232)    (4,555)    (3,416)    (1,782)    (4,279)
  Return to
   Accrual         (2,700)    (1,444)      (839)    (1,464)    (7,556)
  Sales of
   Foreclosed
   Assets            (147)      (310)    (4,418)    (1,025)      (672)
  Charge-
   offs/Write-
   downs           (3,536)      (842)    (2,087)      (736)    (1,361)
----------------------------------------------------------------------
 Total
  Reductions      (10,615)    (7,151)   (10,760)    (5,007)   (13,868)
----------------------------------------------------------------------
Balance at End
 of Quarter       $21,160    $27,866    $31,724    $40,144    $41,952
======================================================================


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

Balance at
 Beginning of
 Period         $127,185   $129,080   $140,028    $129,080   $142,853
Loans Charged-
 Off
 Commercial
  Commercial
   and
   Industrial      3,328        387        565       3,715      2,182
  Commercial
   Mortgage            -        574        400         574        400
  Construction         -          -          -           -        529
  Lease
   Financing         379        228        325         607        340
 Consumer
  Residential
   Mortgage          319        145        687         464      1,376
  Home Equity          9          -          7           9         89
  Purchased
   Home Equity       201         90          -         291          -
  Other
   Consumer        4,564      4,655      3,619       9,219      6,708
  Lease
   Financing          28         36         50          64        117
----------------------------------------------------------------------
Total Loans
 Charged-Off       8,828      6,115      5,653      14,943     11,741
----------------------------------------------------------------------
Recoveries on
 Loans
 Previously
 Charged-Off
 Commercial
  Commercial
   and
   Industrial      1,245        954      1,819       2,199      2,391
  Commercial
   Mortgage          151        689         57         840         74
  Construction         -        435         55         435        955
  Lease
   Financing           1         15          -          16         17
 Consumer
  Residential
   Mortgage          304        294        254         598        457
  Home Equity        101         39         50         140        103
  Purchased
   Home Equity        57          -          -          57          -
  Other
   Consumer        1,703      1,663      1,342       3,366      2,669
  Lease
   Financing          16         55          8          71         53
 Foreign           6,469         76         14       6,545        143
----------------------------------------------------------------------
Total
 Recoveries on
 Loans
 Previously
 Charged-Off      10,047      4,220      3,599      14,267      6,862
----------------------------------------------------------------------
Net Loan
 Recoveries
 (Charge-Offs)     1,219     (1,895)    (2,054)       (676)    (4,879)
Provision for
 Loan and
 Lease Losses     (3,500)         -          -      (3,500)         -
----------------------------------------------------------------------
Balance at End
 of Period      $124,904   $127,185   $137,974    $124,904   $137,974
======================================================================

Average Loans
 Outstanding  $5,772,926 $5,742,368 $5,518,401  $5,757,647 $5,489,783
======================================================================

Ratio of Net
 Loan Charge-
 Offs to
 Average Loans
 Outstanding
 (annualized)     (0.08)%      0.13%      0.15%       0.02%      0.18%
Ratio of
 Allowance to
 Loans and
 Leases
 Outstanding        2.16%      2.23%      2.52%       2.16%      2.52%


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

Three Months
 Ended June 30,
 2004

Net Interest
 Income           $49,568    $33,607    $2,844     $9,830     $95,849
Provision for
 Loan and Lease
 Losses             2,587      2,730        (1)    (8,816)     (3,500)
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and Lease
 Losses            46,981     30,877     2,845     18,646      99,349
Non-Interest
 Income            24,388     12,188    12,938      5,334      54,848
----------------------------------------------------------------------
                   71,369     43,065    15,783     23,980     154,197
Non-Interest
 Expense          (44,560)   (23,009)  (13,145)    (4,411)    (85,125)
----------------------------------------------------------------------
Income Before
 Income Taxes      26,809     20,056     2,638     19,569      69,072
Provision for
 Income Taxes      (9,919)    (7,421)     (976)    (6,524)    (24,840)
----------------------------------------------------------------------
Allocated Net
 Income            16,890     12,635     1,662     13,045      44,232
----------------------------------------------------------------------
Allowance
 Funding Value       (148)      (688)       (6)       842           -
GAAP Provision      2,587      2,730        (1)    (8,816)     (3,500)
Economic
 Provision         (3,510)    (2,821)      (99)        (3)     (6,433)
Tax Effect of
 Adjustments          396        288        39      2,951       3,674
----------------------------------------------------------------------
Income Before
 Capital Charge    16,215     12,144     1,595      8,019      37,973
Capital Charge     (5,485)    (5,134)   (1,302)    (8,231)    (20,152)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $10,730     $7,010      $293      $(212)    $17,821
======================================================================

RAROC (ROE for
 the Company)          33%        26%       14%        28%         24%
======================================================================

Total Assets at
 June 30, 2004 $3,693,382 $2,331,968  $114,021 $3,549,398  $9,688,769
======================================================================


Three Months
 Ended June 30,
 2003 (1)

Net Interest
 Income           $53,139    $34,394    $2,635       $317     $90,485
Provision for
 Loan and Lease
 Losses             1,321      1,022         -     (2,343)          -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and Lease
 Losses            51,818     33,372     2,635      2,660      90,485
Non-Interest
 Income            26,613      8,302    12,355      3,469      50,739
----------------------------------------------------------------------
                   78,431     41,674    14,990      6,129     141,224
Information
 Technology
 Systems
 Replacement
 Project             (368)         -       (90)    (9,647)    (10,105)
Non-Interest
 Expense          (45,238)   (23,884)  (12,145)    (4,022)    (85,289)
----------------------------------------------------------------------
Income (Loss)
 Before Income
 Taxes             32,825     17,790     2,755     (7,540)     45,830
Provision for
 Income Taxes     (12,145)    (6,465)   (1,019)     3,833     (15,796)
----------------------------------------------------------------------
Allocated Net
 Income (Loss)     20,680     11,325     1,736     (3,707)     30,034
----------------------------------------------------------------------
Allowance
 Funding Value       (161)    (1,100)       (7)     1,268           -
GAAP Provision      1,321      1,022         -     (2,343)          -
Economic
 Provision         (2,901)    (3,031)     (108)        (5)     (6,045)
Tax Effect of
 Adjustments          644      1,150        42        401       2,237
----------------------------------------------------------------------
Income (Loss)
 Before Capital
 Charge            19,583      9,366     1,663     (4,386)     26,226
Capital Charge     (5,683)    (5,418)   (1,255)   (13,275)    (25,631)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $13,900     $3,948      $408   $(17,661)       $595
======================================================================

RAROC (ROE for
 the Company)          38%        19%       15%      (12)%         13%
======================================================================

Total Assets at
 June 30, 2003 $3,487,565 $2,242,905   $97,414 $3,723,050  $9,550,934
======================================================================

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


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

Six Months
 Ended June 30,
 2004

Net Interest
 Income           $99,807    $67,671    $5,679    $18,723    $191,880
Provision for
 Loan and Lease
 Losses             5,334      2,477        48    (11,359)     (3,500)
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and Lease
 Losses            94,473     65,194     5,631     30,082     195,380
Non-Interest
 Income            45,403     22,660    27,338      8,289     103,690
----------------------------------------------------------------------
                  139,876     87,854    32,969     38,371     299,070
Non-Interest
 Expense          (87,777)   (46,247)  (26,082)    (8,041)   (168,147)
----------------------------------------------------------------------
Income Before
 Income Taxes      52,099     41,607     6,887     30,330     130,923
Provision for
 Income Taxes     (19,277)   (15,376)   (2,548)    (9,691)    (46,892)
----------------------------------------------------------------------
Allocated Net
 Income            32,822     26,231     4,339     20,639      84,031
----------------------------------------------------------------------
Allowance
 Funding Value       (277)    (1,425)      (14)     1,716           -
GAAP Provision      5,334      2,477        48    (11,359)     (3,500)
Economic
 Provision         (6,906)    (5,598)     (193)        (5)    (12,702)
Tax Effect of
 Adjustments          684      1,682        59      3,570       5,995
----------------------------------------------------------------------
Income Before
 Capital Charge    31,657     23,367     4,239     14,561      73,824
Capital Charge    (11,255)   (10,405)   (2,580)   (17,950)    (42,190)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $20,402    $12,962    $1,659    $(3,389)    $31,634
======================================================================

RAROC (ROE for
 the Company)          31%        25%       18%        27%         22%
======================================================================

Total Assets at
 June 30, 2004 $3,693,382 $2,331,968  $114,021 $3,549,398  $9,688,769
======================================================================


Six Months
 Ended June 30,
 2003 (1)

Net Interest
 Income          $105,331    $69,353    $5,955       $846    $181,485
Provision for
 Loan and Lease
 Losses             2,169      3,173         -     (5,342)          -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and Lease
 Losses           103,162     66,180     5,955      6,188     181,485
Non-Interest
 Income            46,310     17,100    25,342      6,740      95,492
----------------------------------------------------------------------
                  149,472     83,280    31,297     12,928     276,977
Information
 Technology
 Systems
 Replacement
 Project             (950)       (23)     (334)   (16,215)    (17,522)
Non-Interest
 Expense          (88,878)   (47,308)  (24,374)    (7,512)   (168,072)
----------------------------------------------------------------------
Income (Loss)
 Before Income
 Taxes             59,644     35,949     6,589    (10,799)     91,383
Provision for
 Income Taxes     (22,068)   (13,087)   (2,438)     6,045     (31,548)
----------------------------------------------------------------------
Allocated Net
 Income (Loss)     37,576     22,862     4,151     (4,754)     59,835
----------------------------------------------------------------------
Allowance
 Funding Value       (313)    (2,241)      (17)     2,571           -
GAAP Provision      2,169      3,173         -     (5,342)          -
Economic
 Provision         (5,609)    (6,094)     (236)       (10)    (11,949)
Tax Effect of
 Adjustments        1,389      1,910        93      1,029       4,421
----------------------------------------------------------------------
Income (Loss)
 Before Capital
 Charge            35,212     19,610     3,991     (6,506)     52,307
Capital Charge    (11,255)   (10,865)   (2,523)   (27,740)    (52,383)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $23,957     $8,745    $1,468   $(34,246)       $(76)
======================================================================

RAROC (ROE for
 the Company)          35%        20%       18%       (9)%         13%
======================================================================

Total Assets at
 June 30, 2003 $3,487,565 $2,242,905   $97,414 $3,723,050  $9,550,934
======================================================================

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


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

Quarterly
 Operating
 Results
Interest
 Income
 Interest and
  Fees on
  Loans and
  Leases         $80,346     $81,428    $80,351    $82,715    $85,954
 Income on
  Investment
  Securities -
  Held to
  Maturity         6,711       6,976      7,183      6,407      3,083
 Income on
  Investment
  Securities -
  Available
  for Sale        21,745      20,846     19,032     16,483     19,815
  Deposits         1,646       1,231      1,169      1,179      1,161
  Funds Sold         177         417         85        248        822
  Other              865         858      1,007      1,032      1,016
----------------------------------------------------------------------
Total Interest
 Income          111,490     111,756    108,827    108,064    111,851
----------------------------------------------------------------------
Interest
 Expense
 Deposits          8,560       9,200      9,433     10,284     13,309
 Securities
  Sold Under
  Agreements
  to
  Repurchase       2,222       1,926      1,359      1,947      2,391
 Funds
  Purchased          506         231        249        271        219
 Short-Term
  Borrowings          13          15         17         26         25
 Long-Term
  Debt             4,340       4,353      4,417      4,431      5,422
----------------------------------------------------------------------
Total Interest
 Expense          15,641      15,725     15,475     16,959     21,366
----------------------------------------------------------------------
Net Interest
 Income           95,849      96,031     93,352     91,105     90,485
Provision for
 Loan and
 Lease Losses     (3,500)          -          -          -          -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and
 Lease Losses     99,349      96,031     93,352     91,105     90,485
----------------------------------------------------------------------
Non-Interest
 Income
 Trust and
  Asset
  Management      12,995      13,864     12,759     12,511     12,545
 Mortgage
  Banking          2,808       1,977      3,324      5,888      6,061
 Service
  Charges on
  Deposit
  Accounts         9,540       9,950      9,442      8,901      8,645
 Fees,
  Exchange,
  and Other
  Service
  Charges         14,243      13,239     13,725     16,034     13,473
 Investment
  Securities
  Gains
  (Losses)           (37)          -        (20)       639        587
 Insurance         3,303       3,643      3,597      3,988      3,015
 Other            11,996       6,169      6,610      5,830      6,413
----------------------------------------------------------------------
Total Non-
 Interest
 Income           54,848      48,842     49,437     53,791     50,739
----------------------------------------------------------------------
Non-Interest
 Expense
 Salaries and
  Benefits        46,689      46,001     46,409     45,731     47,711
 Net Occupancy
  Expense          9,543       9,386      9,933      9,806      9,628
 Net Equipment
  Expense          5,799       5,964      7,395      7,301      9,208
 Information
  Technology
  Systems
  Replacement
  Project              -           -          -      4,349     10,105
 Other            23,094      21,671     19,667     21,690     18,742
----------------------------------------------------------------------
Total Non-
 Interest
 Expense          85,125      83,022     83,404     88,877     95,394
----------------------------------------------------------------------
Income Before
 Income Taxes     69,072      61,851     59,385     56,019     45,830
Provision for
 Income Taxes     24,840      22,052     20,712     19,332     15,796
----------------------------------------------------------------------
Net Income       $44,232     $39,799    $38,673    $36,687    $30,034
======================================================================

Basic Earnings
 Per Share         $0.84       $0.73      $0.70      $0.64      $0.50
Diluted
 Earnings Per
 Share             $0.79       $0.69      $0.66      $0.61      $0.48

Balance Sheet
 Totals
Total Assets  $9,688,769 $10,013,442 $9,461,647 $9,370,755 $9,550,934
Net Loans      5,662,410   5,587,811  5,628,095  5,437,730  5,333,896
Total Deposits 7,469,288   7,363,922  7,332,779  7,102,116  7,140,849
Total
 Shareholders'
 Equity          699,438     785,768    793,132    823,760    913,010

Performance
 Ratios
Net Income to
 Average Total
 Assets (ROA)       1.80%       1.65%      1.66%      1.53%      1.27%
Net Income to
 Average
 Shareholders'
 Equity (ROE)      24.28%      19.98%     18.59%     16.69%     12.93%
Efficiency
 Ratio (1)         56.49%      57.31%     58.41%     61.34%     67.55%
Efficiency
 Ratio
 excluding
 System
 Replacement
 Costs             56.49%      57.31%     58.41%     58.34%     60.39%

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

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

SOURCE: Bank of Hawaii Corporation