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Bank of Hawaii Corporation Second Quarter 2005 Financial Results

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

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

  • Diluted Earnings Per Share $0.87; Net Income $46.4 Million
  • Board of Directors Declares Dividend of $0.33 Per Share

Bank of Hawaii Corporation (NYSE:BOH) today reported diluted earnings per share of $0.87 for the second quarter of 2005, an increase from diluted earnings per share of $0.83 in the first quarter of 2005 and an increase from $0.79 in the second quarter of 2004. Net income for the second quarter of 2005 was $46.4 million, up $0.9 million from net income of $45.5 million in the previous quarter and up $2.2 million from $44.2 million reported in the same quarter last year.

Results for the second quarter of 2004 included a return to income of $3.5 million before tax ($2.2 million after tax or $0.04 per diluted share), resulting from the release of a portion of the allowance for loan and lease losses. Excluding the release of reserves, results for the second quarter of 2005 increased $4.4 million or $0.12 per diluted share from the same quarter last year.

Return on average assets for the second quarter of 2005 was 1.87 percent, compared to 1.88 percent in the first quarter of 2005, and 1.80 percent in the second quarter of 2004. Return on average equity was 25.98 percent for the second quarter of 2005, up from 23.66 percent in the previous quarter and up from 24.28 percent in the same quarter last year.

"Bank of Hawaii Corporation completed another quarter of solid financial performance," said Allan R. Landon, Chairman and CEO. "We continued to focus on meeting the financial needs of our customers, which contributed to the growth of our businesses in the second quarter."

For the six months ended June 30, 2005, net income was $92.0 million, up $7.9 million or 9.4 percent from net income of $84.0 million for the same period last year. Diluted earnings per share were $1.69 for the first half of 2005, an increase of 14.2 percent from diluted earnings per share of $1.48 for the first half of 2004. The year-to-date return on average assets was 1.87 percent, up from 1.73 percent for the same six months in 2004. The year-to-date return on average equity was 24.78 percent, up from 22.03 percent for the six months ended June 30, 2004.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the second quarter of 2005 was $101.1 million, up $0.4 million from $100.7 million in the first quarter of 2005 and up $5.2 million from $95.9 million in the second quarter of last year. The increase in net interest income from the second quarter of 2004 was largely due to growth in the loan portfolio. An analysis of the change in net interest income from the previous quarter is included in Table 6.

The net interest margin was 4.36 percent for the second quarter of 2005, a 7 basis point decrease from 4.43 percent in the previous quarter and a 19 basis point increase from 4.17 percent in the second quarter of 2004. The decrease from the previous quarter was primarily due to the effects of the flattening yield curve.

The Company did not recognize a provision for loan and lease losses during the second or first quarters of 2005. As previously mentioned, the Company returned to income $3.5 million from a release of the allowance for loan and lease losses during the second quarter of 2004.

Non-interest income was $50.7 million for the second quarter of 2005, a decrease of $1.6 million or 3.1 percent compared to non-interest income of $52.3 million in the first quarter of 2005. The decrease was largely due to a decline in insurance income, deposit account analysis fees, and personal tax preparation fees which are traditionally higher in the first quarter. Non-interest income was $54.8 million in the same quarter last year, including a partnership distribution of $3.2 million and a gain of $2.5 million on the sale of land. Excluding these items, non-interest income increased $1.5 million or 3.0 percent over the second quarter of 2004.

Non-interest expense was $79.0 million in the second quarter of 2005, down $1.9 million or 2.3 percent from non-interest expense of $80.9 million in the previous quarter and down $6.1 million or 7.2 percent from $85.1 million in the same quarter last year. Included in the second quarter of 2004 were charges of $2.2 million to settle litigation. Excluding these charges, non-interest expense decreased $3.9 million or 4.7 percent largely due to a decline in expenses for salaries and benefits. An analysis of salary and benefit expenses is included in Table 7.

The efficiency ratio for the second quarter of 2005 was 52.07 percent, an improvement from 52.86 percent in the previous quarter and from 56.49 percent in the same quarter last year.

The Company's business segments are defined as Retail Banking, Commercial Banking, Investment Services Group, and Treasury and Other Corporate. Results are determined based on the Company's internal financial management reporting process and organizational structure. Selected financial information for the business segments is included in Tables 11a and 11b.

Asset Quality

Bank of Hawaii Corporation's asset quality continued to improve when compared to prior quarters. Non-performing assets were $10.9 million at the end of the second quarter of 2005, a decrease of $2.4 million, or 18.3 percent, compared to non-performing assets of $13.4 million at the end of the previous quarter and a decrease of $10.2 million, or 48.4 percent, compared to $21.2 million at the end of the same quarter last year. At June 30, 2005 the ratio of non-performing assets to total loans, foreclosed real estate, and other investments was 0.18 percent compared with 0.22 percent at March 31, 2005 and 0.37 percent at June 30, 2004.

Non-accrual loans were $9.9 million at June 30, 2005, a reduction of $2.6 million, or 20.4 percent, from $12.5 million at March 31, 2005 and down $6.3 million, or 38.9 percent, from $16.3 million at June 30, 2004. Non-accrual loans as a percentage of total loans at June 30, 2005 were 0.16 percent, down from 0.21 percent at March 31, 2005 and down from 0.28 percent at June 30, 2004.

Net charge-offs for the second quarter of 2005 were $3.7 million, or 0.25 percent (annualized) of total average loans, unchanged from the first quarter of 2005. During the second quarter of 2004 there was a net recovery of $1.2 million. Net charge-offs in the second quarter of 2005 were comprised of $5.6 million in charge-offs partially offset by recoveries of $1.9 million.

The allowance for loan and lease losses was $101.6 million at June 30, 2005, down from $105.0 million at March 31, 2005 and down from $124.9 million at June 30, 2004. The decrease in the allowance from the previous year is largely due to $10.0 million returned to income from releases of the allowance for loan and lease losses during 2004. In addition, during the fourth quarter of 2004, $6.8 million was reclassified from the allowance for loan and lease losses to other liabilities representing the estimate for losses related to unfunded commitments to extend credit. The $3.4 million decrease in the allowance from the previous quarter was primarily due to net charge-offs. The allowance for unfunded commitments at June 30, 2005 was $4.6 million, down from $4.9 million at March 31, 2005.

The ratio of the allowance for loan and lease losses to total loans was 1.65 percent at June 30, 2005, down slightly from 1.75 percent at March 31, 2005 and down from 2.16 percent at June 30, 2004. If the allowance for unfunded commitments had been reclassified at June 30, 2004, the ratio of the allowance for loan and lease losses to total loans would have been 2.06 percent.

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

Other Financial Highlights

Total assets were $10.06 billion at June 30, 2005, up from $9.91 billion at March 31, 2005 and up from $9.69 billion at June 30, 2004. Total loans and leases were $6.15 billion at June 30, 2005, up from $6.02 billion at March 31, 2005 and up from $5.79 billion at June 30, 2004. Commercial loans were $2.20 billion at June 30, 2005, up from $2.10 billion at March 31, 2005 and $2.02 billion at June 30, 2004 as commercial loan originations strengthened during the quarter and outpaced payoff activity. Consumer loans were $3.95 billion at June 30, 2005, up from $3.91 billion at March 31, 2005 and $3.76 billion at June 30, 2004 primarily as a result of increases in home equity outstandings from successful loan promotions in a strong Hawaii residential real estate market.

Total deposits at June 30, 2005 were $7.73 billion, slightly down from $7.76 billion at March 31, 2005 and up from $7.47 billion at June 30, 2004. On a linked quarter basis, balances in interest-bearing checking accounts decreased, despite an increase in the number of accounts, mostly due to customers who transferred excess account balances to higher rate time deposits resulting in a growth in time deposits on a linked quarter and year-to-date comparison.

During the second quarter of 2005, Bank of Hawaii Corporation repurchased 1.3 million shares of common stock at a total cost of $60.8 million under its share repurchase program. The average cost was $47.22 per share repurchased. From the beginning of the share repurchase program in July 2001 through June 30, 2005, the Company has repurchased a total of 38.6 million shares and returned a total of $1.3 billion to the shareholders at an average cost of $32.67 per share. From July 1, 2005 through July 22, 2005, the Company repurchased an additional 0.1 million shares of common stock at an average cost of $52.90 per share. Remaining buyback authority under the share repurchase program was $85.1 million at July 22, 2005.

The Company's capital and liquidity remain strong. At June 30, 2005 the Tier 1 leverage ratio was 7.18 percent compared to 7.42 percent at March 31, 2005 and 7.16 percent at June 30, 2004.

The Company's Board of Directors has declared a quarterly cash dividend of $0.33 per share on the Company's outstanding shares. The dividend will be payable on September 15, 2005 to shareholders of record at the close of business on August 29, 2005.

Financial Outlook

Bank of Hawaii Corporation's earnings estimate of approximately $176.0 million to $179.0 million in net income for the full year of 2005 remains unchanged. The Company performs a quarterly analysis of credit quality to determine the adequacy of the reserve for credit losses. The results of this analysis determine the timing and amount of the provision for loan and lease losses. Earnings per share and return on equity projections continue to be dependent upon, among other things, the terms and timing of share repurchases.

Economy

Hawaii continued to experience record high tourism volumes, home prices and employment during the second quarter of 2005. Unemployment declined to 2.7 percent in the quarter, job growth remained strong and Hawaii personal income growth was 6.0 percent (3.0 percent after adjusting for inflation). Construction continued to grow during the second quarter of 2005, including private and military housing initiatives.

Conference Call Information

The Company will review its second quarter 2005 financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The presentation will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation's web site, www.boh.com. The conference call number is 800-573-4842 in the United States or 617-224-4327 for international callers. No confirmation code is required to access the call. A replay will be available for one week beginning Monday, July 25, 2005 by calling 888-286-8010 in the United States or 617-801-6888 for international callers and entering the number 37453795 when prompted. A replay of the presentation will also be available via the Investor Relations link of the Company's web site.

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

Forward-Looking Statements

This news release, including the statements under the caption "Financial Outlook," contains forward-looking statements concerning, among other things, the economic and business environment in our service area and elsewhere, credit quality, the expected level of loan and lease loss provisioning, anticipated net income and other financial and business matters in future periods. Our forward-looking statements are based on numerous assumptions, any of which could prove to be inaccurate and actual results may differ materially from those projected for a variety of reasons, including, but not limited to: 1) unanticipated changes in business and economic conditions, the competitive environment, fiscal and monetary policies, legislation in Hawaii and the other markets we serve, or the timing and interpretation of accounting standards; 2) changes in our credit quality or risk profile which may increase or decrease the required level of reserve for credit losses; 3) changes in market interest rates that may affect our credit markets and ability to maintain our net interest margin; 4) changes to the amount and timing of our proposed equity repurchases and repayment of maturing debt; 5) real or threatened acts of war or terrorist activity affecting business conditions; and 6) 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     Three Months Ended        Six Months Ended
 except per share              June 30,                June 30,
 amounts)                  2005        2004        2005        2004
----------------------------------------------------------------------

For the Period:
Interest Income        $  124,105  $  111,490  $  244,263  $  223,246
Net Interest Income       101,039      95,849     201,697     191,880
Net Income                 46,429      44,232      91,951      84,031
Basic Earnings Per
 Share                       0.90        0.84        1.75        1.57
Diluted Earnings Per
 Share                       0.87        0.79        1.69        1.48
Dividends Declared Per
 Share                       0.33        0.30        0.66        0.60

Net Income to Average
 Total Assets (ROA)          1.87%       1.80%       1.87%       1.73%
Net Income to Average
 Shareholders' Equity
 (ROE)                      25.98       24.28       24.78       22.03
Net Interest Margin (1)      4.36        4.17        4.39        4.23
Efficiency Ratio (2)        52.07       56.49       52.47       56.89

Average Assets         $9,969,243  $9,893,303  $9,907,845  $9,785,603
Average Loans and
 Leases                 6,090,149   5,772,926   6,045,609   5,757,647
Average Deposits        7,747,331   7,371,388   7,717,729   7,345,645
Average Shareholders'
 Equity                   716,767     732,652     748,344     766,950
Average Equity to
 Average Assets              7.19%       7.41%       7.55%       7.84%

                                                       June 30,
                                                   2005       2004
----------------------------------------------------------------------
At Period End:
Net Loans                                     $  6,049,831 $5,662,410
Total Assets                                    10,059,690  9,688,769
Deposits                                         7,726,758  7,469,288
Long-Term Debt                                     242,674    297,600
Shareholders' Equity                               712,169    699,438

Allowance to Loans and
 Leases Outstanding                                   1.65%      2.16%
Dividend Payout Ratio                                37.71      38.22
Leverage Ratio                                        7.18       7.16

Book Value Per Common
 Share                                        $      13.73 $    13.34

Employees (FTE)                                      2,561      2,683
Branches and offices                                    86         89

Market Price Per Share
 of Common Stock for
 the Quarter Ended:
                                     Closing  $      50.75 $    45.22
                                        High         51.30      46.84
                                         Low         43.82      40.97

(1) The net interest margin is defined as net interest income, on a
    fully-taxable equivalent basis, as a percentage of average earning
    assets.
(2) The efficiency ratio is defined as non-interest expense divided by
    total revenue (net interest income and non-interest income).



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)                  Table 2
----------------------------------------------------------------------
(dollars in thousands      Three Months Ended       Six Months Ended
 except per share              June 30,                June 30,
 amounts)                  2005      2004 (1)      2005      2004 (1)
----------------------------------------------------------------------
Interest Income
  Interest and Fees
   on Loans and Leases $   90,119  $   80,346  $  176,586  $  161,774
  Income on Investment
   Securities -
   Available for Sale      27,987      21,745      55,306      42,591
  Income on Investment
   Securities - Held
   to Maturity              5,527       6,711      11,352      13,687
  Deposits                     36       1,646          59       2,877
  Funds Sold                  165         177         240         594
  Other                       271         865         720       1,723
----------------------------------------------------------------------
Total Interest Income     124,105     111,490     244,263     223,246
----------------------------------------------------------------------
Interest Expense
  Deposits                 13,577       8,560      25,181      17,760
  Securities Sold
   Under Agreements
   to Repurchase            4,562       2,222       7,887       4,148
  Funds Purchased           1,151         506       1,884         737
  Short-Term Borrowings        45          13          77          28
  Long-Term Debt            3,731       4,340       7,537       8,693
----------------------------------------------------------------------
Total Interest Expense     23,066      15,641      42,566      31,366
----------------------------------------------------------------------
Net Interest Income       101,039      95,849     201,697     191,880
Provision for Loan and
 Lease Losses                   -      (3,500)          -      (3,500)
----------------------------------------------------------------------
Net Interest Income
 After Provision for
 Loan and Lease Losses    101,039      99,349     201,697     195,380
----------------------------------------------------------------------
Non-Interest Income
  Trust and Asset
   Management              14,058      12,995      28,680      26,859
  Mortgage Banking          2,594       2,808       5,184       4,785
  Service Charges on
   Deposit Accounts         9,569       9,540      19,748      19,490
  Fees, Exchange, and
   Other Service Charges   15,211      14,243      29,047      27,482
  Investment Securities
   Gains (Losses)             337         (37)        337         (37)
  Insurance                 4,330       4,926      10,118       9,584
  Other                     4,575      10,373       9,875      15,527
----------------------------------------------------------------------
Total Non-Interest
 Income                    50,674      54,848     102,989     103,690
----------------------------------------------------------------------
Non-Interest Expense
  Salaries and Benefits    43,856      46,689      88,625      92,690
  Net Occupancy Expense     9,189       9,543      18,734      18,929
  Net Equipment Expense     5,377       5,799      10,848      11,763
  Other                    20,582      23,094      41,660      44,765
----------------------------------------------------------------------
Total Non-Interest
 Expense                   79,004      85,125     159,867     168,147
----------------------------------------------------------------------
Income Before Income
 Taxes                     72,709      69,072     144,819     130,923
Provision for Income
 Taxes                     26,280      24,840      52,868      46,892
----------------------------------------------------------------------
Net Income             $   46,429  $   44,232  $   91,951  $   84,031
======================================================================
Basic Earnings Per
 Share                 $     0.90  $     0.84  $     1.75  $     1.57
Diluted Earnings Per
 Share                 $     0.87  $     0.79  $     1.69  $     1.48
Dividends Declared Per
 Share                 $     0.33  $     0.30  $     0.66  $     0.60
Basic Weighted Average
 Shares                51,873,772  52,491,874  52,646,022  53,389,261
Diluted Weighted
 Average Shares        53,403,781  55,662,415  54,250,018  56,710,653
======================================================================

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


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition (Unaudited)               Table 3
----------------------------------------------------------------------
                                   June 30,    Dec. 31,     June 30,
(dollars in thousands)               2005        2004         2004
----------------------------------------------------------------------

Assets
Interest-Bearing Deposits       $     4,825  $     4,592  $   179,680
Investment Securities -
 Available for Sale
   Held in Portfolio              2,396,204    2,483,719    2,275,272
   Pledged as Collateral            117,947            -            -
Investment Securities - Held to
 Maturity
 (Fair Value of $522,993,
  $585,836, and $663,534)           526,767      589,908      679,382
Funds Sold                           50,000       21,000            -
Loans Held for Sale                  17,435       17,642        9,565
Loans and Leases                  6,151,418    5,986,930    5,787,314
   Allowance for Loan and Lease
    Losses                         (101,587)    (106,796)    (124,904)
----------------------------------------------------------------------
     Net Loans                    6,049,831    5,880,134    5,662,410
----------------------------------------------------------------------
Total Earning Assets              9,163,009    8,996,995    8,806,309
----------------------------------------------------------------------
Cash and Non-Interest-Bearing
 Deposits                           293,115      225,359      339,486
Premises and Equipment              137,907      146,095      149,128
Customers' Acceptance Liability       1,598        1,406        1,213
Accrued Interest Receivable          38,540       36,044       36,378
Foreclosed Real Estate                  292          191        4,889
Mortgage Servicing Rights            18,239       18,769       20,819
Goodwill                             34,959       36,216       36,216
Other Assets                        372,031      305,116      294,331
----------------------------------------------------------------------
Total Assets                    $10,059,690  $ 9,766,191  $ 9,688,769
======================================================================
Liabilities
Deposits
   Non-Interest-Bearing Demand  $ 1,918,749  $ 1,977,703  $ 1,939,580
   Interest-Bearing Demand        1,641,873    1,536,323    1,464,207
   Savings                        2,967,993    2,960,351    2,976,108
   Time                           1,198,143    1,090,290    1,089,393
----------------------------------------------------------------------
Total Deposits                    7,726,758    7,564,667    7,469,288
----------------------------------------------------------------------
Securities Sold Under
 Agreements to Repurchase           861,233      568,981      687,816
Funds Purchased                      63,565      149,635      139,055
Short-Term Borrowings                 9,894       15,000       11,055
Banker's Acceptances Outstanding      1,598        1,406        1,213
Retirement Benefits Payable          66,638       65,708       62,821
Accrued Interest Payable              8,617        7,021        7,169
Taxes Payable and Deferred Taxes    283,082      229,928      225,989
Other Liabilities                    83,462       96,373       87,325
Long-Term Debt                      242,674      252,638      297,600
----------------------------------------------------------------------
Total Liabilities                 9,347,521    8,951,357    8,989,331
----------------------------------------------------------------------
Shareholders' Equity
Common Stock ($.01 par value);
 authorized 500,000,000 shares;
 issued / outstanding: June
 2005 - 81,721,733 / 51,853,734,
 December 2004 - 81,711,752 /
 54,960,857, June 2004 -
 81,711,599 / 52,426,010                815          813          813
Capital Surplus                     457,280      450,998      403,150
Accumulated Other Comprehensive
 Income (Loss)                      (18,471)     (12,917)     (27,258)
Retained Earnings                 1,339,119    1,282,425    1,251,689
Deferred Stock Grants                (7,166)      (8,433)      (9,391)
Treasury Stock, at Cost
 (Shares: June 2005 -
 29,867,999, December 2004
 - 26,750,895, June 2004 -
  29,285,589)                    (1,059,408)    (898,052)    (919,565)
----------------------------------------------------------------------
Total Shareholders' Equity          712,169      814,834      699,438
----------------------------------------------------------------------
Total Liabilities and
 Shareholders' Equity           $10,059,690  $ 9,766,191  $ 9,688,769
======================================================================


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

Balance at December
 31, 2004             $814,834   $813  $450,998  $(12,917) $1,282,425
Comprehensive Income:
     Net Income         91,951      -         -         -      91,951
     Other
      Comprehensive
      Income, Net of
      Tax:
         Change in
          Unrealized
          Gains and
          Losses on
          Investment
          Securities    (5,554)     -         -    (5,554)          -
     Total
      Comprehensive
      Income

Common Stock Issued
 under Stock Plans and
 Related Tax Benefits
 (605,364 shares)       21,499      2     6,282         -        (610)
Treasury Stock
 Purchased (3,710,379
 shares)              (175,914)     -         -         -           -
Cash Dividends Paid    (34,647)     -         -         -     (34,647)
----------------------------------------------------------------------
Balance at June 30,
 2005                 $712,169   $815  $457,280  $(18,471) $1,339,119
======================================================================

Balance at December
 31, 2003             $793,132   $807  $391,701  $ (5,711) $1,199,077
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)     -         -   (21,547)          -
     Total
      Comprehensive
      Income

Common Stock Issued
 under Stock Plans and
 Related Tax Benefits
 (908,502 shares)       32,028      6    11,449         -         803
Treasury Stock
 Purchased (3,527,779
 shares)              (155,984)     -         -         -           -
Cash Dividends Paid    (32,222)     -         -         -     (32,222)
----------------------------------------------------------------------
Balance at June 30,
 2004                 $699,438   $813  $403,150  $(27,258) $1,251,689
======================================================================

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

Balance at December 31, 2004        $(8,433) $  (898,052)
Comprehensive Income:
     Net Income                           -            -      $91,951
     Other Comprehensive
      Income, Net of Tax:
         Change in Unrealized
          Gains and Losses on
          Investment Securities           -            -       (5,554)
                                                          ------------
     Total Comprehensive
      Income                                                  $86,397
                                                          ============

Common Stock Issued under Stock
 Plans and Related Tax Benefits
 (605,364 shares)                     1,267       14,558
Treasury Stock Purchased
 (3,710,379 shares)                       -     (175,914)
Cash Dividends Paid                       -            -
---------------------------------------------------------
Balance at June 30, 2005            $(7,166) $(1,059,408)
=========================================================

Balance at December 31, 2003        $(8,309) $  (784,433)
Comprehensive Income:
     Net Income                           -            -      $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)                    (1,082)      20,852
Treasury Stock Purchased
 (3,527,779 shares)                       -     (155,984)
Cash Dividends Paid                       -            -
---------------------------------------------------------
Balance at June 30, 2004            $(9,391) $  (919,565)
=========================================================



Bank of Hawaii Corporation and Subsidiaries
Consolidated Average Balances and Interest Rates - Taxable Equivalent
 Basis (Unaudited)                                             Table 5
----------------------------------------------------------------------
                                              Three Months Ended
                                                 June 30, 2005
                                         Average    Income/    Yield/
(dollars in millions)                    Balance    Expense      Rate
----------------------------------------------------------------------
Earning Assets
Interest-Bearing Deposits              $    6.0   $      -       2.36%
Funds Sold                                 23.1        0.2       2.86
Investment Securities
 Available for Sale                     2,542.5       28.0       4.41
 Held to Maturity                         544.1        5.5       4.06
Loans Held for Sale                        15.1        0.2       5.72
Loans and Leases (2)
 Commercial and Industrial                945.0       14.3       6.07
 Construction                             140.9        2.1       5.91
 Commercial Mortgage                      599.3        8.8       5.89
 Residential Mortgage                   2,343.9       33.1       5.64
 Other Revolving Credit and
  Installment                             739.6       15.4       8.37
 Home Equity                              719.0       10.8       6.01
 Purchased Home Equity                    103.3        0.8       3.06
 Lease Financing                          499.2        4.7       3.74
----------------------------------------------------------------------
Total Loans and Leases                  6,090.2       90.0       5.91
----------------------------------------------------------------------
Other                                      66.3        0.3       1.64
----------------------------------------------------------------------
Total Earning Assets (3)                9,287.3      124.2       5.35
----------------------------------------------------------------------
Cash and Non-Interest-Bearing
 Deposits                                 305.8
Other Assets                              376.1
                                      ----------
Total Assets                           $9,969.2
                                      ==========

Interest-Bearing Liabilities
Interest-Bearing Deposits
 Demand                                $1,667.3        2.4       0.58
 Savings                                2,970.8        4.8       0.65
 Time                                   1,159.0        6.4       2.20
----------------------------------------------------------------------
Total Interest-Bearing Deposits         5,797.1       13.6       0.94
----------------------------------------------------------------------
Short-Term Borrowings                     822.9        5.8       2.81
Long-Term Debt                            242.7        3.7       6.16
----------------------------------------------------------------------
Total Interest-Bearing Liabilities      6,862.7       23.1       1.35
----------------------------------------------------------------------
Net Interest Income                               $  101.1
                                                 ==========
 Interest Rate Spread                                            4.00%
 Net Interest Margin                                             4.36%
Non-Interest-Bearing Demand Deposits    1,950.2
Other Liabilities                         439.5
Shareholders' Equity                      716.8
                                      ----------
Total Liabilities and Shareholders'
 Equity                                $9,969.2
                                      ==========

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

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

                                              Three Months Ended
                                               June 30, 2004 (1)
                                         Average    Income/    Yield/
(dollars in millions)                    Balance    Expense      Rate
----------------------------------------------------------------------
Earning Assets
Interest-Bearing Deposits              $  408.8   $    1.6       1.62%
Funds Sold                                 71.3        0.2       0.99
Investment Securities
 Available for Sale                     2,148.9       21.8       4.06
 Held to Maturity                         709.8        6.7       3.78
Loans Held for Sale                        20.7        0.3       5.54
Loans and Leases (2)
 Commercial and Industrial                845.2       10.3       4.90
 Construction                             100.4        0.9       3.80
 Commercial Mortgage                      638.9        8.6       5.39
 Residential Mortgage                   2,281.8       32.2       5.65
 Other Revolving Credit and
  Installment                             683.2       14.4       8.51
 Home Equity                              534.6        6.1       4.63
 Purchased Home Equity                    178.8        1.9       4.16
 Lease Financing                          510.1        5.6       4.38
----------------------------------------------------------------------
Total Loans and Leases                  5,773.0       80.0       5.56
----------------------------------------------------------------------
Other                                      78.1        0.9       4.45
----------------------------------------------------------------------
Total Earning Assets (3)                9,210.6      111.5       4.86
----------------------------------------------------------------------
Cash and Non-Interest-Bearing
 Deposits                                 306.3
Other Assets                              376.4
                                      ----------
Total Assets                           $9,893.3
                                      ==========

Interest-Bearing Liabilities
Interest-Bearing Deposits
 Demand                                $1,390.2        0.6       0.17
 Savings                                2,911.5        3.1       0.43
 Time                                   1,129.5        4.9       1.74
----------------------------------------------------------------------
Total Interest-Bearing Deposits         5,431.2        8.6       0.63
----------------------------------------------------------------------
Short-Term Borrowings                   1,082.5        2.7       1.02
Long-Term Debt                            317.3        4.3       5.48
----------------------------------------------------------------------
Total Interest-Bearing Liabilities      6,831.0       15.6       0.92
----------------------------------------------------------------------
Net Interest Income                               $   95.9
                                                 ==========
 Interest Rate Spread                                            3.94%
 Net Interest Margin                                             4.17%
Non-Interest-Bearing Demand Deposits    1,940.2
Other Liabilities                         389.4
Shareholders' Equity                      732.7
                                      ----------
Total Liabilities and Shareholders'
 Equity                                $9,893.3
                                      ==========

                                              Six Months Ended
                                                June 30, 2005
                                        Average    Income/     Yield/
(dollars in millions)                   Balance    Expense       Rate
----------------------------------------------------------------------
Earning Assets
Interest-Bearing Deposits              $    5.4   $    0.1       2.17%
Funds Sold                                 17.9        0.2       2.68
Investment Securities
 Available for Sale                     2,517.0       55.4       4.41
 Held to Maturity                         559.3       11.4       4.06
Loans Held for Sale                        14.1        0.4       5.57
Loans and Leases (2)
 Commercial and Industrial                924.8       27.5       5.99
 Construction                             132.5        3.7       5.69
 Commercial Mortgage                      602.6       17.4       5.81
 Residential Mortgage                   2,338.0       65.7       5.62
 Other Revolving Credit and
  Installment                             738.2       30.5       8.32
 Home Equity                              699.0       20.2       5.83
 Purchased Home Equity                    110.0        1.8       3.32
 Lease Financing                          500.5        9.4       3.81
----------------------------------------------------------------------
Total Loans and Leases                  6,045.6      176.2       5.86
----------------------------------------------------------------------
Other                                      60.1        0.7       2.42
----------------------------------------------------------------------
Total Earning Assets (3)                9,219.4      244.4       5.32
----------------------------------------------------------------------
Cash and Non-Interest-Bearing
 Deposits                                 310.6
Other Assets                              377.8
                                      ---------
Total Assets                           $9,907.8
                                      =========

Interest-Bearing Liabilities
Interest-Bearing Deposits
 Demand                                $1,642.9        4.1       0.50
 Savings                                2,971.5        9.2       0.62
 Time                                   1,137.0       11.9       2.11
----------------------------------------------------------------------
Total Interest-Bearing Deposits         5,751.4       25.2       0.88
----------------------------------------------------------------------
Short-Term Borrowings                     764.9        9.9       2.60
Long-Term Debt                            245.6        7.5       6.15
----------------------------------------------------------------------
Total Interest-Bearing Liabilities      6,761.9       42.6       1.27
----------------------------------------------------------------------
Net Interest Income                               $  201.8
                                                 ==========
 Interest Rate Spread                                            4.05%
 Net Interest Margin                                             4.39%
Non-Interest-Bearing Demand Deposits    1,966.4
Other Liabilities                         431.2
Shareholders' Equity                      748.3
                                      ---------
Total Liabilities and Shareholders'
 Equity                                $9,907.8
                                      =========

(1) Certain 2004 information has been reclassified to conform to 2005
    presentation.
(2) Non-performing loans are included in the respective average loan
    balances. Income, if any, on such loans is recognized on a cash
    basis.
(3) Interest income includes taxable-equivalent basis adjustment based
    upon a statutory tax rate of 35%.



Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable Equivalent Basis
 (Unaudited)                                                   Table 6
----------------------------------------------------------------------
                            Three Months Ended June 30, 2005 Compared
                                         to March 31, 2005
(dollars in millions)       Volume (1)   Rate (1)   Time (1)     Total
----------------------------------------------------------------------
Change in Interest Income:
Funds Sold                     $ 0.1      $   -      $   -      $ 0.1
Investment Securities
   Available for Sale            0.5        0.1          -        0.6
   Held to Maturity             (0.3)         -          -       (0.3)
Loans and Leases
   Commercial and Industrial     0.6        0.4        0.1        1.1
   Construction                  0.3        0.1          -        0.4
   Commercial Mortgage          (0.1)       0.3        0.1        0.3
   Residential Mortgage          0.2        0.3          -        0.5
   Other Revolving Credit
    and Installment                -        0.2        0.2        0.4
   Home Equity                   0.6        0.6        0.1        1.3
   Purchased Home Equity        (0.1)      (0.1)         -       (0.2)
   Lease Financing                 -       (0.2)       0.1       (0.1)
----------------------------------------------------------------------
Total Loans and Leases           1.5        1.6        0.6        3.7
----------------------------------------------------------------------
Other                            0.1       (0.2)         -       (0.1)
----------------------------------------------------------------------
Total Change in Interest
 Income                          1.9        1.5        0.6        4.0
----------------------------------------------------------------------

Change in Interest Expense:
Interest-Bearing Deposits
   Demand                        0.1        0.6          -        0.7
   Savings                         -        0.4          -        0.4
   Time                          0.3        0.5        0.1        0.9
----------------------------------------------------------------------
Total Interest-Bearing
 Deposits                        0.4        1.5        0.1        2.0
----------------------------------------------------------------------
Short-Term Borrowings            0.8        0.8        0.1        1.7
Long-Term Debt                  (0.1)         -          -       (0.1)
----------------------------------------------------------------------
Total Change in Interest
 Expense                         1.1        2.3        0.2        3.6
----------------------------------------------------------------------

Change in Net Interest
 Income                        $ 0.8      $(0.8)     $ 0.4      $ 0.4
======================================================================

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


Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits (Unaudited)                              Table 7
----------------------------------------------------------------------
                                Three Months Ended   Six Months Ended
                                     June 30,            June 30,
(dollars in thousands)            2005     2004        2005     2004
----------------------------------------------------------------------

Salaries                         $26,616  $27,904    $52,669  $55,108
Incentive Compensation             3,725    3,260      7,693    7,076
Stock Based Compensation           1,828    3,233      3,543    6,129
Commission Expense                 2,281    2,284      4,533    3,911
Retirement and Other Benefits      4,437    4,214      9,205    8,571
Payroll Taxes                      2,205    3,103      5,658    6,533
Medical, Dental, and Life
 Insurance                         1,823    2,136      4,054    4,240
Separation Expense                   941      555      1,270    1,122
----------------------------------------------------------------------
Total Salaries and Benefits      $43,856  $46,689    $88,625  $92,690
======================================================================


Bank of Hawaii Corporation and Subsidiaries
Loan Portfolio Balances (Unaudited)                            Table 8
----------------------------------------------------------------------
                          June 30,   March 31,    Dec. 31,    June 30,
(dollars in thousands)      2005       2005       2004 (1)    2004 (1)
----------------------------------------------------------------------

Commercial
  Commercial and
   Industrial          $  997,762  $  918,878  $  909,264  $  800,893
  Commercial Mortgage     563,979     609,689     602,678     643,382
  Construction            165,772     107,403     122,355      98,916
  Lease Financing         471,600     468,349     479,100     479,488
----------------------------------------------------------------------
Total Commercial        2,199,113   2,104,319   2,113,397   2,022,679
----------------------------------------------------------------------
Consumer
  Residential Mortgage  2,347,877   2,342,062   2,326,385   2,286,618
  Home Equity             739,161     694,261     657,164     559,225
  Purchased Home Equity    93,806     109,632     122,728     162,730
  Other Revolving
   Credit and
   Installment            742,834     734,836     734,721     721,386
  Lease Financing          28,627      30,680      32,535      34,676
----------------------------------------------------------------------
Total Consumer          3,952,305   3,911,471   3,873,533   3,764,635
----------------------------------------------------------------------
Total Loans and Leases $6,151,418  $6,015,790  $5,986,930  $5,787,314
======================================================================


Air Transportation Credit
 Exposure (2) (Unaudited)
----------------------------------------------------------------------
                              June 30,              Dec. 31,  June 30,
                                 2005               2004 (1)    2004
                                Unused      Total     Total     Total
(dollars in    Outstanding  Commitments  Exposure  Exposure  Exposure
 thousands)
----------------------------------------------------------------------
Air
 Transportation
  United States
   Regional
   Passenger
   Carriers       $ 41,556    $  7,191   $ 48,747  $ 54,981  $ 58,491
  United States
   National
   Passenger
   Carriers         37,638           -     37,638    37,377    37,581
  Passenger
   Carriers
   Based Outside
   United States    22,249           -     22,249    25,910    30,325
  Cargo Carriers    13,475           -     13,475    13,771    14,122
----------------------------------------------------------------------
Total Air
 Transportation   $114,918    $  7,191   $122,109  $132,039  $140,519
======================================================================

(1) Certain 2004 information has been reclassified to conform to 2005
    presentation.
(2) Exposure includes loans, leveraged leases and operating leases.



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

Non-Performing Assets
Non-Accrual Loans
  Commercial
    Commercial and
     Industrial        $      430  $      470  $      683  $      680
    Commercial Mortgage     1,739       1,922       2,106       5,649
    Lease Financing         1,586       2,418       2,973       1,948
----------------------------------------------------------------------
  Total Commercial          3,755       4,810       5,762       8,277
----------------------------------------------------------------------
  Consumer
    Residential
     Mortgage               6,035       7,503       7,688       7,688
    Home Equity               156         185         218         306
----------------------------------------------------------------------
  Total Consumer            6,191       7,688       7,906       7,994
----------------------------------------------------------------------
Total Non-Accrual Loans     9,946      12,498      13,668      16,271
----------------------------------------------------------------------
Foreclosed Real Estate        292         183         191       4,889
Other Investments             682         684           -           -
----------------------------------------------------------------------
Total Non-Performing
 Assets                $   10,920  $   13,365  $   13,859  $   21,160
======================================================================

Accruing Loans Past Due
 90 Days or More
  Commercial
    Commercial and
     Industrial        $        9  $       29  $       52  $       19
    Commercial Mortgage     2,213       2,243           -         693
----------------------------------------------------------------------
  Total Commercial          2,222       2,272          52         712
----------------------------------------------------------------------
  Consumer
    Residential
     Mortgage               1,310         604         387         698
    Purchased Home
     Equity                     -          70         183          32
    Other Revolving
     Credit and
     Installment            1,417       1,417       1,433       1,142
    Lease Financing             -           -          30          57
----------------------------------------------------------------------
  Total Consumer            2,727       2,091       2,033       1,929
----------------------------------------------------------------------
Total Accruing Loans
 Past Due 90 Days or
 More                  $    4,949  $    4,363  $    2,085  $    2,641
======================================================================

Total Loans and Leases $6,151,418  $6,015,790  $5,986,930  $5,787,314
======================================================================

Ratio of Non-Accrual
 Loans to Total Loans        0.16%       0.21%       0.23%       0.28%
----------------------------------------------------------------------

Ratio of Non-Performing
 Assets to Total Loans,
 Foreclosed Real Estate
 and Other Investments       0.18%       0.22%       0.23%       0.37%
----------------------------------------------------------------------

Ratio of Non-Performing
 Assets and Accruing
 Loans Past Due 90 Days
 or More to Total Loans      0.26%       0.29%       0.27%       0.41%
----------------------------------------------------------------------

Quarter to Quarter
 Changes in Non-
 Performing Assets
Balance at Beginning
 of Quarter            $   13,365  $   13,859  $   15,977  $   27,866
  Additions                 3,088       2,796       5,164       3,909
  Reductions
    Payments               (5,097)     (2,202)     (6,435)     (4,232)
      Return to Accrual      (392)       (698)       (456)     (2,700)
      Sales of
       Foreclosed
       Assets                   -        (129)       (206)       (147)
      Charge-offs/Write-
       downs                  (44)       (261)       (185)     (3,536)
----------------------------------------------------------------------
  Total Reductions         (5,533)     (3,290)     (7,282)    (10,615)
----------------------------------------------------------------------
Balance at End of
 Quarter               $   10,920  $   13,365  $   13,859  $   21,160
======================================================================



Bank of Hawaii Corporation and Subsidiaries
Consolidated Reserve for Credit Losses (Unaudited)            Table 10
----------------------------------------------------------------------
                          Three Months Ended       Six Months Ended
                              June 30,                June 30,
(dollars in thousands)     2005        2004        2005        2004
----------------------------------------------------------------------

Balance at Beginning of
 Period                $  109,906  $  127,185  $  113,596  $  129,080
Loans Charged-Off
  Commercial
    Commercial and
     Industrial               581       3,328       1,155       3,715
    Commercial Mortgage         -           -           -         574
    Lease Financing             -         379           -         607
  Consumer
    Residential
     Mortgage                  67         319         382         464
    Home Equity                 -           9           -           9
    Purchased Home
     Equity                   406         201         698         291
    Other Revolving
     Credit and
     Installment            4,546       4,564       9,128       9,219
    Lease Financing            29          28          63          64
----------------------------------------------------------------------
 Total Loans
  Charged-Off               5,629       8,828      11,426      14,943
----------------------------------------------------------------------
Recoveries on Loans
 Previously Charged-Off
  Commercial
    Commercial and
     Industrial               211       1,245         753       2,199
    Commercial Mortgage        32         151          94         840
    Construction                -           -           -         435
    Lease Financing           130           1         162          16
  Consumer
    Residential
     Mortgage                 189         304         295         598
    Home Equity                 5         101          30         140
    Purchased Home
     Equity                   120          57         154          57
    Other Revolving
     Credit and
     Installment            1,166       1,703       2,453       3,366
    Lease Financing            33          16          52          71
  Foreign                       -       6,469           -       6,545
----------------------------------------------------------------------
Total Recoveries on
 Loans Previously
 Charged-Off                1,886      10,047       3,993      14,267
----------------------------------------------------------------------
Net Loan Recoveries
 (Charge-Offs)             (3,743)      1,219      (7,433)       (676)
Provision for Loan and
 Lease Losses                   -      (3,500)          -      (3,500)
----------------------------------------------------------------------
Balance at End of
 Period (1)            $  106,163  $  124,904  $  106,163  $  124,904
======================================================================

Components
  Allowance for Loan
   and Lease Losses       101,587     124,904     101,587     124,904
  Reserve for Unfunded
   Commitments (2)          4,576           -       4,576           -
----------------------------------------------------------------------
Total Reserve for
 Credit Losses         $  106,163  $  124,904  $  106,163  $  124,904
======================================================================

Average Loans
 Outstanding           $6,090,149  $5,772,926  $6,045,609  $5,757,647
======================================================================

Ratio of Net Loan
 (Recoveries)
 Charge-Offs to
 Average Loans
 Outstanding
 (annualized)                0.25%     (0.08)%       0.25%       0.02%
Ratio of Allowance to
 Loans and Leases
 Outstanding (2)             1.65%       2.16%       1.65%       2.16%


(1) Included in this analysis is activity related to the Company's
    reserve for unfunded commitments, which is separately recorded in
    other liabilities in the Consolidated Statements of Condition.
(2) The reclassification of the reserve for unfunded commitments to
    other liabilities occurred in the fourth quarter of 2004 on a
    prospective basis. Thus, June 30, 2004 allowance for loan and
    lease losses and reserve for unfunded commitments were reported
    together. At June 30, 2004, the reserve for unfunded commitments
    was $5.4 million.


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, 2005
Net Interest
 Income     $   54,212  $   35,525  $   3,222 $    8,080  $   101,039
Provision
 for Loan
 and Lease
 Losses          3,531         236         -      (3,767)           -
----------------------------------------------------------------------
Net Interest
 Income
 After
 Provision
 for Loan
 and Lease
 Losses         50,681      35,289     3,222      11,847      101,039
Non-Interest
 Income         25,080       8,735    14,229       2,630       50,674
----------------------------------------------------------------------
                75,761      44,024    17,451      14,477      151,713
Non-Interest
 Expense       (42,569)    (21,019)  (13,692)     (1,724)     (79,004)
----------------------------------------------------------------------
Income Before
 Income
 Taxes          33,192      23,005     3,759      12,753       72,709
Provision for
 Income Taxes  (12,281)     (8,400)   (1,391)     (4,208)     (26,280)
----------------------------------------------------------------------
Allocated
 Net Income     20,911      14,605     2,368       8,545       46,429
----------------------------------------------------------------------
Allowance
 Funding
 Value            (168)       (601)       (6)        775            -
GAAP
 Provision       3,531         236         -      (3,767)           -
Economic
 Provision      (3,435)     (2,432)     (103)         (1)      (5,971)
Tax Effect of
 Adjustments        27       1,035        40       1,107        2,209
----------------------------------------------------------------------
Income Before
 Capital
 Charge         20,866      12,843     2,299       6,659       42,667
Capital
 Charge         (5,424)     (4,562)   (1,428)     (8,296)     (19,710)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital
 Charge
 (NIACC)    $   15,442  $    8,281  $     871 $   (1,637) $    22,957
======================================================================

RAROC (ROE
 for the
 Company)           42%         31%       18%         14%          26%
======================================================================

Total Assets
 at June 30,
 2005       $3,789,519  $2,533,496  $192,378  $3,544,297  $10,059,690
======================================================================


Three Months Ended
 June 30, 2004 (1)

Net Interest
 Income     $   49,524  $   33,583  $  2,832  $    9,910  $    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         46,937      30,853     2,833      18,726       99,349
Non-Interest
 Income         24,388      12,141    12,985       5,334       54,848
----------------------------------------------------------------------
                71,325      42,994    15,818      24,060      154,197
Non-Interest
 Expense       (44,560)    (22,928)  (13,226)     (4,411)     (85,125)
----------------------------------------------------------------------
Income Before
 Income Taxes   26,765      20,066     2,592      19,649       69,072
Provision for
 Income Taxes   (9,903)     (7,423)     (959)     (6,555)     (24,840)
----------------------------------------------------------------------
Allocated
 Net Income     16,862      12,643     1,633      13,094       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         16,187      12,152     1,566       8,068       37,973
Capital
 Charge         (5,485)     (5,129)   (1,307)     (8,231)     (20,152)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital
 Charge
 (NIACC)    $   10,702  $    7,023  $    259  $     (163) $    17,821
======================================================================

RAROC (ROE
 for the
 Company)           33%         26%       13%         28%          24%
======================================================================

Total Assets
 at June 30,
 2004       $3,693,382  $2,331,951  $114,038  $3,549,398  $ 9,688,769
======================================================================

(1) Certain 2004 information has been reclassified to conform to 2005
    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, 2005
Net Interest
 Income     $  106,562  $   70,087  $  6,111  $   18,937  $   201,697
Provision
 for Loan
 and Lease
 Losses          7,016         652        (1)     (7,667)           -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision
 for Loan
 and Lease
 Losses         99,546      69,435      6,112     26,604      201,697
Non-Interest
 Income         49,322      20,266     28,855      4,546      102,989
----------------------------------------------------------------------
               148,868      89,701     34,967     31,150      304,686
Non-Interest
 Expense       (85,618)    (43,579)   (26,911)    (3,759)    (159,867)
----------------------------------------------------------------------
Income Before
 Income Taxes   63,250      46,122      8,056     27,391      144,819
Provision for
 Income Taxes  (23,403)    (16,999)    (2,981)    (9,485)     (52,868)
----------------------------------------------------------------------
Allocated
 Net Income     39,847      29,123      5,075     17,906       91,951
----------------------------------------------------------------------
Allowance
 Funding
 Value            (331)     (1,202)       (12)     1,545            -
GAAP
 Provision       7,016         652         (1)    (7,667)           -
Economic
 Provision      (6,941)     (4,890)      (193)        (2)     (12,026)
Tax Effect of
 Adjustments        94       2,013         76      2,267        4,450
----------------------------------------------------------------------
Income Before
 Capital
 Charge         39,685      25,696      4,945     14,049       84,375
Capital
 Charge        (10,880)     (9,198)    (2,769)   (18,324)     (41,171)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital
 Charge
 (NIACC)    $   28,805  $   16,498  $   2,176 $   (4,275) $    43,204
======================================================================

RAROC (ROE
 for the
 Company)           40%         31%        20%        17%          25%
======================================================================

Total Assets
 at June 30,
 2005       $3,789,519  $2,533,496  $ 192,378 $3,544,297  $10,059,690
======================================================================


Six Months Ended
 June 30, 2004 (1)
Net Interest
 Income     $   99,681  $   67,602  $   5,645 $   18,952  $   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         94,347      65,125      5,597     30,311      195,380
Non-Interest
 Income         45,403      22,573     27,426      8,288      103,690
----------------------------------------------------------------------
               139,750      87,698     33,023     38,599      299,070
Non-Interest
 Expense       (87,777)    (46,072)   (26,256)    (8,042)    (168,147)
----------------------------------------------------------------------
Income Before
 Income Taxes   51,973      41,626      6,767     30,557      130,923
Provision for
 Income Taxes  (19,230)    (15,381)    (2,504)    (9,777)     (46,892)

----------------------------------------------------------------------
Allocated
 Net Income     32,743      26,245      4,263     20,780       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         31,578      23,381      4,163     14,702       73,824
Capital
 Charge        (11,255)    (10,395)    (2,590)   (17,950)     (42,190)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital
 Charge
 (NIACC)    $   20,323  $   12,986  $   1,573 $   (3,248) $    31,634
======================================================================

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

Total Assets
 at June 30,
 2004       $3,693,382  $2,331,951   $114,038 $3,549,398   $9,688,769
======================================================================

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


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

Quarterly
 Operating
 Results
Interest Income
  Interest
   and Fees
   on Loans
   and Leases $    90,119 $   86,467 $   84,100 $   82,079 $   80,346
   Income on
   Investment
   Securities
   - Available
   for Sale        27,987     27,319     26,394     24,543     21,745
   Income on
    Investment
    Securities
    - Held to
    Maturity        5,527      5,825      6,147      6,370      6,711
  Deposits             36         23        107        496      1,646
  Funds Sold          165         75        356        108        177
  Other               271        449        267        801        865
----------------------------------------------------------------------
Total Interest
 Income           124,105    120,158    117,371    114,397    111,490
----------------------------------------------------------------------
Interest Expense
  Deposits        13,577     11,604      9,993      8,990      8,560
  Securities
   Sold Under
   Agreements
   to
   Repurchase      4,562      3,325      3,120      2,085      2,222
  Funds
   Purchased       1,151        733        395        683        506
  Short-Term
   Borrowings         45         32         39         15         13
  Long-Term
   Debt            3,731      3,806      3,893      3,845      4,340
----------------------------------------------------------------------
Total Interest
 Expense           23,066     19,500     17,440     15,618     15,641
----------------------------------------------------------------------
Net Interest
 Income           101,039    100,658     99,931     98,779     95,849
Provision for
 Loan and
 Lease Losses           -          -     (6,500)         -     (3,500)
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and
 Lease Losses     101,039    100,658    106,431     98,779     99,349
----------------------------------------------------------------------
Non-Interest
 Income
  Trust and
   Asset
   Management      14,058     14,622     13,934     12,672     12,995
  Mortgage
   Banking          2,594      2,590      1,516      1,711      2,808
  Service
   Charges on
   Deposit
   Accounts         9,569     10,179     10,155      9,472      9,540
  Fees,
   Exchange,
   and Other
   Service
   Charges         15,211     13,836     13,684     13,741     14,243
  Investment
   Securities
   Gains
   (Losses)           337          -       (757)         -        (37)
  Insurance         4,330      5,788      4,234      5,423      4,926
  Other             4,575      5,300      5,584     10,035     10,373
----------------------------------------------------------------------
Total Non-
 Interest
 Income            50,674     52,315     48,350     53,054     54,848
----------------------------------------------------------------------
Non-Interest
 Expense
  Salaries and
   Benefits        43,856     44,769     45,043     46,566     46,689
  Net Occupancy
   Expense          9,189      9,545      9,606      9,812      9,543
  Net Equipment
   Expense          5,377      5,471      6,316      5,847      5,799
  Other            20,582     21,078     21,138     21,965     23,094
----------------------------------------------------------------------
Total Non-
 Interest
 Expense           79,004     80,863     82,103     84,190     85,125
----------------------------------------------------------------------
Income Before
 Income Taxes      72,709     72,110     72,678     67,643     69,072
Provision for
 Income Taxes      26,280     26,588     26,437     24,576     24,840
----------------------------------------------------------------------
Net Income    $    46,429 $   45,522 $   46,241 $   43,067 $   44,232
======================================================================

Basic Earnings
 Per Share          $0.90      $0.85      $0.86      $0.82      $0.84
Diluted
 Earnings Per
 Share              $0.87      $0.83      $0.82      $0.78      $0.79

Balance Sheet
 Totals
Total Assets  $10,059,690 $9,908,030 $9,766,191 $9,594,809 $9,688,769
Net Loans       6,049,831  5,910,784  5,880,134  5,690,924  5,662,410
Total Deposits  7,726,758  7,760,662  7,564,667  7,413,240  7,469,288
Total
 Shareholders'
 Equity           712,169    716,656    814,834    756,707    699,438

Performance
 Ratios
Net Income to
 Average Total
 Assets (ROA)        1.87%      1.88%      1.89%      1.77%      1.80%
Net Income to
 Average
 Shareholders'
 Equity (ROE)       25.98      23.66      23.63      23.42      24.28
Efficiency
 Ratio (2)          52.07      52.86      55.37      55.45      56.49

(1) Certain 2004 information has been reclassified to conform to 2005
    presentation.
(2) The efficiency ratio is defined as non-interest expense divided by
    total revenue (net interest income and non-interest income).

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

SOURCE: Bank of Hawaii Corporation