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Bank of Hawaii Corporation Third Quarter 2003 Financial Results

HONOLULU--(BUSINESS WIRE)--Oct. 27, 2003--Bank of Hawaii Corporation (NYSE:BOH)

  • Diluted Earnings Per Share Increases to $0.61
  • Net Income Increases to $36.7 Million for the Quarter
  • Board of Directors Increases Quarterly Dividend 58% to $0.30 Per Share

Bank of Hawaii Corporation (NYSE:BOH) today reported diluted earnings per share of $0.61 for the third quarter of 2003, up 27.1 percent from diluted earnings per share of $0.48 in the second quarter of 2003 and up 41.9 percent from $0.43 in the third quarter last year. Net income for the quarter was $36.7 million, up 22.2 percent from $30.0 million in the previous quarter and up 21.5 percent from $30.2 million in the same quarter last year.

The return on average assets for the third quarter of 2003 was 1.53 percent, up from 1.27 percent in the second quarter of 2003 and up from 1.22 percent in the third quarter of 2002. The return on average equity was 16.69 percent during the quarter, up 29.1 percent from 12.93 percent in the previous quarter and up 60.5 percent from 10.40 percent in the same quarter last year.

"I am pleased by the Company's third quarter financial results," said Michael E. O'Neill, Chairman, CEO and President. "Our credit quality measures continued to improve, our margin increased, total revenue was up and our expenses are coming down. The Hawaii economy is strengthening and, importantly, our businesses are growing. This gives us the confidence to increase our quarterly dividend from $0.19 per share to $0.30 per share."

For nine months ended September 30, 2003, net income was $96.5 million, up $4.2 million or 4.6 percent from net income of $92.3 million for the same period last year. Diluted earnings per share were $1.56 for the first nine months of 2003, up 23.8 percent from diluted earnings per share of $1.26 for the comparable period last year. The year-to-date return on average assets was 1.37 percent, up from 1.22 percent for the same nine months in 2002. The year-to-date return on average equity was 13.95 percent, up from 10.10 percent for the nine-month period ended September 30, 2002.

Financial Highlights

Net interest income for the third quarter of 2003 on a fully taxable equivalent basis was $91.1 million, up $0.6 million from the second quarter of 2003 and down $1.1 million from net interest income of $92.2 million in the third quarter of 2002. The decrease in net interest income from the previous year was largely due to reductions in interest rates. An analysis of the change in net interest income is included in Table 6.

The net interest margin was 4.15 percent for the third quarter of 2003, a 3 basis point increase from 4.12 percent in the previous quarter and a 12 basis point increase from 4.03 percent in the same quarter last year.

The Company did not recognize a provision for loan and lease losses during the third quarter of 2003 and has not recorded a provision for the last five quarters. The allowance for loan and lease losses was reduced $5.3 million from June 30, 2003, which equaled the amount of net charge-offs for the third quarter of 2003.

Non-interest income was $53.8 million for the quarter, an increase of $3.1 million or 6.0 percent compared to non-interest income of $50.7 million in the second quarter of 2003. This improvement was primarily due to a prepayment penalty on a commercial real estate loan and higher insurance income. Non-interest income was up $6.8 million, or 14.4 percent from non-interest income of $47.0 million in the third quarter of 2002. The improvement from the prior year quarter was largely due to higher levels of service charge and fee income, growth in insurance revenue and increased mortgage banking income.

Non-interest expense was $88.9 million in the third quarter of 2003, including $4.4 million in systems replacement costs. Non-interest expense for the second quarter of 2003 included $10.1 million in systems replacement costs. Excluding these costs, non-interest expense was $84.5 million in the third quarter of 2003, down $0.8 million compared to the previous quarter as reductions in salary and equipment expenses related to the systems replacement project were partially offset by a contribution to the Bank of Hawaii Charitable Foundation. Non-interest expense for the third quarter of 2002 included $6.6 million in systems replacement costs. Excluding these costs, non-interest expense decreased $0.6 million from the same quarter last year.

The efficiency ratio was 61.3 percent for the third quarter of 2003. Excluding systems replacement costs, the efficiency ratio was 58.3 percent, a significant improvement compared to 60.4 percent in the previous quarter and 61.2 percent in the same quarter last year. For the nine-month period ended September 30, 2003, the efficiency ratio, excluding systems replacement and net restructuring costs was 59.9 percent compared to 61.7 percent in the comparable period last year.

The Company's business segments are defined as Retail Banking, Commercial Banking, Investment Services Group, and Treasury and Other Corporate. Results are determined based on the Company's internal financial management reporting process and organizational structure. Previously reported results have been reclassified to conform to current methodology for allocating interest income among the segments. Business segment performance details are summarized in Tables 11 and 11a.

Asset Quality

Bank of Hawaii Corporation's credit quality continued to improve during the third quarter of 2003. Non-performing assets were $40.1 million at the end of the quarter, a decrease of $1.9 million, or 4.5 percent, from non-performing assets of $42.0 million at the end of the previous quarter. Non-performing assets declined $23.2 million, or 36.7 percent compared to $63.3 million at the end of the third quarter last year. At September 30, 2003 the ratio of non-performing assets to total loans and foreclosed real estate was 0.72 percent compared with 0.77 percent at June 30, 2003 and 1.20 percent at September 30, 2002.

Non-accrual loans were $31.4 million at September 30, 2003, a reduction of $1.3 million, or 4.0 percent, from $32.7 million at June 30, 2003 and down $14.3 million, or 31.3 percent, from $45.7 million at September 30, 2002. Non-accrual loans as a percentage of total loans were 0.56 percent at September 30, 2003, down from 0.60 percent at the end of the previous quarter and down from 0.87 percent at the end of the comparable quarter last year.

Net charge-offs during the third quarter of 2003 were $5.3 million, or 0.38 percent (annualized) of total average loans, up from $2.1 million, or 0.15 percent (annualized) of total average loans in the second quarter of 2003. The increase in net charge-offs from the previous quarter was largely due to $3.6 million in net charge-offs, primarily consumer loans, remaining from the Pacific Island branches closed last year. Net charge-offs during the third quarter of 2002 were $4.5 million, or 0.33 percent (annualized) of total average loans. Net charge-offs for the first nine months of 2003 were $10.2 million, or 0.25 percent (annualized) of total average loans, a decrease from $16.1 million, or 0.39 percent (annualized) of total average loans in the comparable period last year.

The allowance for loan and lease losses was $132.7 million at September 30, 2003. The ratio of the allowance for loan and lease losses to total loans was 2.38 percent at September 30, 2003 down from 2.52 percent at June 30, 2003 and down from 2.94 percent at September 30, 2002.

Concentrations of credit exposure to selected components of the portfolio are summarized in Table 7.

Other Financial Highlights

Total assets were $9.4 billion at September 30, 2003, down slightly from total assets of $9.5 billion at December 31, 2002 and down from total assets of $9.7 billion at September 30, 2002. Total assets were down $180 million from June 30, 2003. The decrease from the prior periods was largely due to net loan growth that was offset by reductions in short-term investments as excess liquidity was utilized for share repurchases.

Total deposits at September 30, 2003 were $7.1 billion, up $182 million from December 31, 2002 and up $474 million from September 30, 2002 primarily due to continued growth in demand and savings deposits. Total deposits decreased slightly from June 30, 2003.

During the third quarter of 2003, Bank of Hawaii Corporation repurchased 3.1 million shares of common stock at a total cost of $103.5 million under the share repurchase program. The average cost per share was $33.85 during the quarter. From the beginning of the share repurchase program in July 2001 through September 30, 2003, the Company had repurchased a total of 28.2 million shares and returned a total of $790.8 million to the shareholders at an average cost of $28.02 per share. Through October 24, 2003, the Company repurchased an additional 0.2 million shares of common stock at a cost of $35.62 per share. Remaining buyback authority, which was increased in September 2003, was $202.7 million at October 24, 2003.

The Company's capital and liquidity remains exceptionally strong. At September 30, 2003 the Tier 1 leverage ratio was 8.52 percent compared to 9.29 percent at June 30, 2003 and 11.07 percent at September 30, 2002.

Dividend Increase

The Company's Board of Directors declared an increased quarterly cash dividend of $0.30 per share on the Company's outstanding shares. The dividend will be payable on December 12, 2003 to shareholders of record at the close of business on November 21, 2003.

Information Technology Systems Replacement Project

Bank of Hawaii Corporation completed the conversion of its core computer hardware and software systems to the Metavante platform on July 7, 2003 and has been successfully operating on Metavante since the conversion. In connection with this project, the Company incurred transition charges of $35.5 million over the five-quarter conversion period that ended during the third quarter of 2003 and all costs have been incurred as of September 30, 2003. Costs totaling $4.4 million were recognized during the third quarter of 2003. The lower cost platform is expected to provide annual cost savings of over $17 million compared to second quarter 2002 technology expense levels. Additional details on this project may be found in Table 10.

Economic Update

The Hawaii economy remained strong during the third quarter of 2003. The construction and real estate investment sectors continued to surge over the summer months, especially in the neighbor island residential markets. Tourism, as measured by passenger arrivals, also increased during the quarter. August 2003 was a record month for Hawaii tourism. Hawaii's seasonally-adjusted unemployment increased slightly to 4.3 percent in August, while nonagricultural payrolls rose more than 2 percent in August 2003 from the prior year level. For more economic information, visit the Company's web site http://www.boh.com/econ/.

Earnings Outlook

The Company now believes that its earnings for 2003 should exceed the previously published earnings guidance of $131 million. Based on current conditions, the Company does not expect to record a provision for loan and lease losses in 2003. 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 third quarter 2003 financial results today at 8:00 a.m. Hawaii Time (1:00 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) 915-4836 in the United States or (973) 317-5319 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 (3:00 p.m. Eastern Time) on Monday, October 27, 2003 by calling (800) 428-6051 in the United States or (973) 709-2089 for international callers and entering the number 273140 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.

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, anticipated costs and annual savings of our information technology systems replacement project, and anticipated dividends, revenues and expenses during the remainder of 2003. We believe the assumptions underlying our forward-looking statements are reasonable. However, any of the assumptions could prove to be inaccurate and actual results may differ materially from those projected for a variety of reasons, including, but not limited to: 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 deteriorate 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 information technology systems replacement project and other business process changes due to adverse changes in implementation processes or costs, operational savings, or timing; 6) actions by the United States military and real or threatened 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 any forward-looking statements to reflect later events or circumstances.

Bank of Hawaii Corporation and Subsidiaries
Highlights  (Unaudited)                                        Table 1
----------------------------------------------------------------------
(dollars in thousands except per share amounts)

                              Three Months Ended   Nine Months Ended
Earnings Highlights and         September 30,        September 30,
 Performance Ratios            2003     2002(1)   2003         2002(1)
----------------------------------------------------------------------

Net Income                    $36,687  $30,200     $96,522    $92,272
Basic Earnings Per Share         0.64     0.44        1.63       1.30
Diluted Earnings Per Share       0.61     0.43        1.56       1.26
Cash Dividends                 10,887   12,197      33,819     38,442
Return on Average Assets         1.53%    1.22%       1.37%      1.22%
Return on Average Equity        16.69%   10.40%      13.95%     10.10%
Net Interest Margin              4.15%    4.03%       4.19%      3.97%
Efficiency Ratio                61.34%   65.90%      65.06%     63.68%
Efficiency Ratio excluding
 ITSRP and Restructuring
 Costs                          58.34%   61.18%      59.88%     61.68%
----------------------------------------------------------------------

Statement of Condition Highlights and                September 30,
 Performance Ratios                               2003         2002(1)
--------------------------------------         -----------------------

Total Assets                                    $9,370,755 $9,702,700
Net Loans                                        5,437,730  5,104,857
Total Deposits                                   7,102,116  6,627,673
Total Shareholders' Equity                         823,760  1,100,706

Book Value Per Common Share                         $14.71     $16.67
Allowance / Loans Outstanding                         2.38%      2.94%
Average Equity / Average
 Assets                                               9.82%     12.10%
Employees (FTE)                                      2,764      2,934
Branches and offices                                    89         97

Market Price Per Share of Common Stock
 for the Quarter Ended:
                                      Closing       $33.58     $27.90
                                      High          $35.55     $30.00
                                      Low           $32.92     $22.79

(1) Certain 2002 information has been reclassified to conform to 2003
    presentation.



Bank of Hawaii Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)                  Table 2
----------------------------------------------------------------------
(dollars in thousands     Three Months Ended       Nine Months Ended
 except per share            September 30,           September 30,
 amounts)                 2003       2002(1)      2003       2002(1)
----------------------------------------------------------------------
Interest Income
   Interest and Fees
    on Loans and
    Leases                $82,715     $89,335    $254,442    $280,421
   Income on
    Investment
    Securities - Held
    to Maturity             6,407       3,963      11,773      13,652
   Income on
    Investment
    Securities -
    Available for Sale     16,483      26,175      58,761      80,173
   Deposits                 1,179       5,384       3,647      16,442
   Funds Sold                 248         914       1,834       2,669
   Other                    1,032       1,575       3,237       4,302
----------------------------------------------------------------------
Total Interest Income     108,064     127,346     333,694     397,659
Interest Expense
   Deposits                10,284      20,547      38,040      66,691
   Security Repurchase
    Agreements              1,947       7,039       6,580      25,588
   Funds Purchased            271         299         695         775
   Short-Term
    Borrowings                 26         334          75       1,272
   Long-Term Debt           4,431       6,946      15,714      23,320
----------------------------------------------------------------------
Total Interest Expense     16,959      35,165      61,104     117,646
----------------------------------------------------------------------
Net Interest Income        91,105      92,181     272,590     280,013
Provision for Loan and
 Lease Losses                   -           -           -      11,616
----------------------------------------------------------------------
Net Interest Income
 After Provision for
 Loan and Lease Losses     91,105      92,181     272,590     268,397
Non-Interest Income
   Trust and Asset
    Management             12,511      13,655      38,237      42,648
   Mortgage Banking         5,888       3,669      12,232      14,468
   Service Charges on
    Deposit Accounts        8,901       7,925      26,496      24,291
   Fees, Exchange, and
    Other Service
    Charges                16,034      13,114      42,496      38,631
   Investment
    Securities Gains          639           -       1,809           3
   Insurance                3,988       2,677      10,083       7,839
   Other                    5,830       5,997      17,930      20,100
----------------------------------------------------------------------
Total Non-Interest
 Income                    53,791      47,037     149,283     147,980
Non-Interest Expense
   Salaries                36,873      37,994     112,564     115,065
   Pensions and Other
    Employee Benefits       8,858       7,377      27,307      26,764
   Net Occupancy
    Expense                 9,806       9,597      29,047      28,511
   Net Equipment
    Expense                 7,301      10,058      26,257      30,176
   Restructuring and
    Other Related
    Costs                       -           -           -       1,979
   Information
    Technology Systems
    Replacement
    Project                 4,349       6,576      21,871       6,576
   Other                   21,690      20,141      57,425      63,465
----------------------------------------------------------------------
Total Non-Interest
 Expense                   88,877      91,743     274,471     272,536
----------------------------------------------------------------------
Income Before Income
 Taxes                     56,019      47,475     147,402     143,841
Provision for Income
 Taxes                     19,332      17,275      50,880      51,569
----------------------------------------------------------------------
Net Income                $36,687     $30,200     $96,522     $92,272
======================================================================
Basic Earnings Per
 Share                      $0.64       $0.44       $1.63       $1.30
Diluted Earnings Per
 Share                      $0.61       $0.43       $1.56       $1.26
Dividends Declared Per
 Share                      $0.19       $0.19       $0.57       $0.73
Basic Weighted Average
 Shares                57,195,570  67,893,086  59,337,319  71,148,663
Diluted Weighted
 Average Shares        59,961,823  69,910,264  61,911,794  73,158,354
======================================================================
(1) Certain 2002 information has been reclassified to conform to 2003
    presentation.


Bank of Hawaii Corporation and Subsidiaries

Consolidated Statements of Condition (Unaudited)               Table 3
----------------------------------------------------------------------
                                    Sept. 30,   Dec. 31,    Sept. 30,
(dollars in thousands)                2003        2002       2002(1)
----------------------------------------------------------------------
Assets
Interest-Bearing Deposits            $208,712    $549,978  $1,019,823
Investment Securities - Held to
 Maturity
  (Market Value of $749,036,
   $236,016 and $286,526,
   respectively)                      754,659     229,720     277,856
Investment Securities - Available
 for Sale                           2,027,062   2,287,201   2,241,106
Funds Sold                                  -     195,000      95,000
Loans Held for Sale                    23,144      40,118      30,863
Loans                               5,570,405   5,359,004   5,259,332
   Allowance for Loan and Lease
    Losses                           (132,675)   (142,853)   (154,475)
----------------------------------------------------------------------
     Net Loans                      5,437,730   5,216,151   5,104,857
----------------------------------------------------------------------
Total Earning Assets                8,451,307   8,518,168   8,769,505
Cash and Non-Interest Bearing
 Deposits                             329,705     374,352     331,786
Premises and Equipment                163,277     176,969     182,230
Customers' Acceptance Liability         1,077       2,680       1,106
Accrued Interest Receivable            33,210      36,722      38,839
Foreclosed Real Estate                  8,757       9,434      17,568
Mortgage Servicing Rights              23,266      28,820      29,911
Goodwill                               36,216      36,216      36,216
Other Assets                          323,940     333,057     295,539
----------------------------------------------------------------------
Total Assets                       $9,370,755  $9,516,418  $9,702,700
======================================================================
Liabilities
Domestic Deposits
   Non-Interest Bearing Demand     $1,846,030  $1,719,633  $1,593,766
   Interest Bearing Demand          1,266,530   1,169,128   1,042,937
   Savings                          2,760,418   2,535,219   2,403,209
   Time                             1,178,213   1,461,780   1,549,693
Foreign Deposits
   Time Due to Banks                   20,832       1,130       4,387
   Other Savings and Time              30,093      33,271      33,681
----------------------------------------------------------------------
Total Deposits                      7,102,116   6,920,161   6,627,673
Securities Sold Under Agreements
 to Repurchase                        646,890     735,621   1,089,287
Funds Purchased                        90,520      64,467     116,775
Current Maturities of Long-Term
 Debt                                  96,757     114,781     122,945
Short-Term Borrowings                  14,796      33,420      17,941
Banker's Acceptances Outstanding        1,077       2,680       1,106
Retirement Benefits Payable            63,281      61,385      38,317
Accrued Interest Payable                7,207      13,731      21,870
Taxes Payable                         195,628     196,813     191,519
Other Liabilities                     101,179      82,596      87,736
Long-Term Debt                        227,544     275,004     286,825
----------------------------------------------------------------------
Total Liabilities                   8,546,995   8,500,659   8,601,994
Shareholders' Equity

Common Stock ($.01 par value);
 authorized 500,000,000 shares;
 issued / outstanding: September
 2003 - 81,568,791 / 55,985,364;
 December 2002 - 81,294,730 /
 63,015,442; September 2002 -
 81,310,042 / 66,048,072                  807         806         806
Capital Surplus                       385,694     372,192     371,098
Accumulated Other Comprehensive
 Income (Loss)                         (2,799)     11,659      26,038
Retained Earnings                   1,177,459   1,115,910   1,100,016
Deferred Stock Grants                  (7,466)     (1,424)     (2,886)

Treasury Stock, at Cost (Shares:
 September 2003 - 25,583,427;
 December 2002 - 18,279,288;
 September 2002 - 15,261,970)        (729,935)   (483,384)   (394,366)
----------------------------------------------------------------------
Total Shareholders' Equity            823,760   1,015,759   1,100,706
----------------------------------------------------------------------
Total Liabilities and
 Shareholders' Equity              $9,370,755  $9,516,418  $9,702,700
======================================================================
(1) Certain 2002 information has been reclassified to conform to 2003
    presentation.


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, 2002     $1,015,759   $806  $372,192  $11,659
Comprehensive Income:
     Net Income                      96,522      -         -        -
     Other Comprehensive Income,
      Net of Tax:
         Change in Unrealized
          Gains and Losses on
          Investment Securities     (14,458)     -         -  (14,458)
     Total Comprehensive Income

Common Stock Issued:
   26,311 Retirement Savings
           Plan                         860      -       269        -
  775,872 Stock Option Plan          18,227      -     2,930        -
   67,510 Dividend Reinvestment
           Plan                       2,205      -       696        -

    7,174 Directors' Restricted
           Shares and Deferred
           Compensation Plan             54      1       237        -
  266,400 Employees' Restricted
           Shares                     4,145      -     9,370        -
Treasury Stock Purchased
 (8,166,579 shares)                (265,735)     -         -        -
Cash Dividends Paid                 (33,819)     -         -        -
----------------------------------------------------------------------
Balance at September 30, 2003      $823,760   $807  $385,694  $(2,799)
======================================================================

Balance at December 31, 2001     $1,247,012   $806  $367,672  $22,761
Comprehensive Income:
     Net Income                      92,272      -         -        -
     Other Comprehensive Income,
      Net of Tax:
         Change in Unrealized
          Gains and Losses on
          Investment Securities       3,859      -         -    3,859
         Foreign Currency
          Translation Adjustment       (582)     -         -     (582)
     Total Comprehensive Income

Common Stock Issued:
   33,402 Retirement Savings
           Plan                         933      -       196        -
1,369,679 Stock Option Plan          27,895      -     4,022        -
          Dividend Reinvestment
   77,270  Plan                       2,152      -       439        -

    4,101 Directors' Restricted
           Shares and Deferred
           Compensation Plan             44      -       117        -
 (71,300) Employees' Restricted
           Shares                     3,636      -    (1,348)       -
Treasury Stock Purchased
 (8,581,000 shares)                (238,073)     -         -        -
Cash Dividends Paid                 (38,442)     -         -        -
----------------------------------------------------------------------
Balance at September 30, 2002    $1,100,706   $806  $371,098  $26,038
======================================================================


                                          Deferred             Compre-
                                 Retained    Stock   Treasury  hensive
(dollars in thousands)           Earnings   Grants      Stock   Income
----------------------------------------------------------------------
Balance at December 31, 2002  $1,115,910  $(1,424) $(483,384)
Comprehensive Income:
     Net Income                   96,522        -          -  $96,522
     Other Comprehensive
      Income, Net of Tax:
         Change in Unrealized
          Gains and Losses on
          Investment
          Securities                   -        -          -  (14,458)
                                                              --------
     Total Comprehensive
      Income                                                  $82,064
                                                              ========
Common Stock Issued:
   26,311 Retirement Savings
           Plan                        -        -        591
  775,872 Stock Option Plan       (1,154)    (817)    17,268
   67,510 Dividend
           Reinvestment Plan           -        -      1,509
    7,174 Directors'
           Restricted Shares
           and Deferred
           Compensation Plan           -        -       (184)
          Employees'
  266,400  Restricted Shares           -   (5,225)         -

Treasury Stock Purchased
 (8,166,579 shares)                    -        -   (265,735)
Cash Dividends Paid              (33,819)       -          -
-------------------------------------------------------------
Balance at September 30,
 2003                         $1,177,459  $(7,466) $(729,935)
=============================================================
Balance at December 31, 2001  $1,055,424  $(7,637) $(192,014)

Comprehensive Income:
     Net Income                   92,272        -          -  $92,272
     Other Comprehensive
      Income, Net of Tax:
         Change in Unrealized
          Gains and Losses on
          Investment
          Securities                   -        -          -    3,859
         Foreign Currency
          Translation
          Adjustment                   -        -          -     (582)
                                                              --------
     Total Comprehensive
      Income                                                  $95,549
                                                              ========
Common Stock Issued:
   33,402 Retirement Savings
           Plan                        -        -        737
1,369,679 Stock Option Plan       (9,236)    (233)    33,342
   77,270 Dividend
           Reinvestment Plan          (2)       -      1,715
    4,101 Directors'
           Restricted Shares
           and Deferred
           Compensation Plan           -        -        (73)
 (71,300) Employees'
           Restricted Shares           -    4,984          -
Treasury Stock Purchased
 (8,581,000 shares)                    -        -   (238,073)
Cash Dividends Paid              (38,442)       -          -
-------------------------------------------------------------
Balance at September 30,
 2002                         $1,100,016  $(2,886) $(394,366)
=============================================================


Bank of Hawaii Corporation and Subsidiaries

Consolidated Average Balances and Interest Rates - Taxable
 Equivalent Basis (Unaudited)                                  Table 5
----------------------------------------------------------------------

                                               Three Months Ended
                                               September 30, 2003
                                            Average   Income/  Yield/
(dollars in millions)                       Balance   Expense   Rate
----------------------------------------------------------------------
Earning Assets
Interest Bearing Deposits                    $224.7      $1.2    2.08%
Funds Sold                                    102.4       0.3    0.97
Investment Securities
 Held to Maturity                             675.1       6.4    3.82
 Available for Sale                         2,090.6      16.5    3.15
Loans Held for Sale                            52.2       0.7    5.45
Loans and Lease Financing
 Commercial and Industrial                    862.8      10.8    4.95
 Construction                                  87.8       0.9    4.26
 Commercial Mortgage                          670.6       9.4    5.56
 Residential Mortgage                       2,298.8      36.2    6.30
 Installment                                  558.6      12.8    9.09
 Home Equity                                  448.1       5.6    4.99
 Purchased Home Equity                        132.6       0.7    2.20
 Lease Financing                              487.2       5.6    4.52
----------------------------------------------------------------------
Total Loans and Lease Financing             5,546.5      82.0    5.89
Other                                          76.1       1.0    5.38
----------------------------------------------------------------------
Total Earning Assets                        8,767.6     108.1    4.91
Cash and Non-interest Bearing Deposits        333.2
Other Assets                                  399.2
                                           ---------
Total Assets                               $9,500.0
                                           =========

Interest Bearing Liabilities
Interest Bearing Deposits
 Domestic Deposits
    Demand                                 $1,242.7      $0.5    0.15%
    Savings                                 2,754.6       3.4    0.49
    Time                                    1,249.9       6.3    2.01
----------------------------------------------------------------------
 Total Domestic Deposits                    5,247.2      10.2    0.77
 Foreign Deposits
    Time Due to Banks                           5.3         -       -
    Other Time and Savings                     33.6       0.1    0.63
----------------------------------------------------------------------
 Total Foreign Deposits                        38.9       0.1    0.78
----------------------------------------------------------------------
Total Interest Bearing Deposits             5,286.1      10.3    0.77
Short-Term Borrowings                         827.8       2.3    1.08
Long-Term Debt                                325.7       4.4    5.40
----------------------------------------------------------------------
Total Interest Bearing Liabilities          6,439.6      17.0    1.04
----------------------------------------------------------------------
Net Interest Income                                     $91.1
                                                     =========
 Interest Rate Spread                                            3.87%
 Net Interest Margin                                             4.15%
Non-Interest Bearing Demand Deposits
 (Domestic)                                 1,844.4
Other Liabilities                             344.1
Shareholders' Equity                          871.9
                                           ---------
Total Liabilities and Shareholders' Equity $9,500.0
                                           =========


                                               Three Months Ended
                                                  June 30, 2003
                                            Average   Income/  Yield/
(dollars in millions)                       Balance   Expense   Rate
----------------------------------------------------------------------
Earning Assets
Interest Bearing Deposits                    $212.4      $1.2    2.19%
Funds Sold                                    267.3       0.9    1.23
Investment Securities
 Held to Maturity                             324.8       3.1    3.85
 Available for Sale                         2,316.9      19.8    3.42
Loans Held for Sale                            81.6       1.1    5.43
Loans and Lease Financing
 Commercial and Industrial                    834.6      10.0    4.81
 Construction                                  83.0       0.9    4.50
 Commercial Mortgage                          682.5      10.1    5.93
 Residential Mortgage                       2,295.1      37.3    6.50
 Installment                                  535.6      13.6   10.18
 Home Equity                                  442.7       5.6    5.06
 Purchased Home Equity                        162.3       2.0    4.96
 Lease Financing                              482.6       5.3    4.42
----------------------------------------------------------------------
Total Loans and Lease Financing             5,518.4      84.8    6.16
Other                                          75.3       1.0    5.41
----------------------------------------------------------------------
Total Earning Assets                        8,796.7     111.9    5.09
Cash and Non-interest Bearing Deposits        325.6
Other Assets                                  385.9
                                           ---------
Total Assets                               $9,508.2
                                           =========

Interest Bearing Liabilities
Interest Bearing Deposits
 Domestic Deposits
    Demand                                 $1,164.8      $0.7    0.25%
    Savings                                 2,744.1       4.5    0.65
    Time                                    1,401.4       8.1    2.31
----------------------------------------------------------------------
 Total Domestic Deposits                    5,310.3      13.3    1.00
 Foreign Deposits
    Time Due to Banks                             -         -       -
    Other Time and Savings                     30.3       0.1    0.91
----------------------------------------------------------------------
 Total Foreign Deposits                        30.3       0.1    0.91
----------------------------------------------------------------------
Total Interest Bearing Deposits             5,340.6      13.4    1.00
Short-Term Borrowings                         810.2       2.6    1.30
Long-Term Debt                                371.5       5.4    5.85
----------------------------------------------------------------------
Total Interest Bearing Liabilities          6,522.3      21.4    1.31
----------------------------------------------------------------------
Net Interest Income                                     $90.5
                                                     =========
 Interest Rate Spread                                            3.78%
 Net Interest Margin                                             4.12%
Non-Interest Bearing Demand Deposits
 (Domestic)                                 1,695.3
Other Liabilities                             358.7
Shareholders' Equity                          931.9
                                           ---------
Total Liabilities and Shareholders' Equity $9,508.2
                                           =========


                                              Three Months Ended(1)
                                               September 30, 2002
                                            Average   Income/  Yield/
(dollars in millions)                       Balance   Expense   Rate
----------------------------------------------------------------------
Earning Assets
Interest Bearing Deposits                  $1,142.3      $5.4    1.87%
Funds Sold                                    210.2       0.9    1.74
Investment Securities
 Held to Maturity                             296.9       4.1    5.45
 Available for Sale                         2,009.5      26.2    5.21
Loans Held for Sale                            40.0       0.6    6.24
Loans and Lease Financing
 Commercial and Industrial                    978.0      12.8    5.19
 Construction                                 147.7       2.1    5.57
 Commercial Mortgage                          571.5       9.8    6.84
 Residential Mortgage                       2,333.9      40.5    6.94
 Installment                                  406.8      11.3   11.01
 Home Equity                                  411.3       5.9    5.70
 Purchased Home Equity                            -         -       -
 Lease Financing                              500.8       6.3    4.98
----------------------------------------------------------------------
Total Loans and Lease Financing             5,350.0      88.7    6.60
Other                                          99.6       1.5    6.28
----------------------------------------------------------------------
Total Earning Assets                        9,148.5     127.4    5.55
Cash and Non-interest Bearing Deposits        300.2
Other Assets                                  355.7
                                           ---------
Total Assets                               $9,804.4
                                           =========

Interest Bearing Liabilities
Interest Bearing Deposits
 Domestic Deposits
    Demand                                 $1,021.5      $0.9    0.37%
    Savings                                 2,360.7       8.1    1.35
    Time                                    1,600.0      11.4    2.82
----------------------------------------------------------------------
 Total Domestic Deposits                    4,982.2      20.4    1.62
 Foreign Deposits
    Time Due to Banks                           9.6         -       -
    Other Time and Savings                     38.3       0.2    1.68
----------------------------------------------------------------------
 Total Foreign Deposits                        47.9       0.2    1.59
----------------------------------------------------------------------
Total Interest Bearing Deposits             5,030.1      20.6    1.62
Short-Term Borrowings                       1,301.3       7.7    2.34
Long-Term Debt                                451.6       6.9    6.10
----------------------------------------------------------------------
Total Interest Bearing Liabilities          6,783.0      35.2    2.06
----------------------------------------------------------------------
Net Interest Income                                     $92.2
                                                     =========
 Interest Rate Spread                                            3.49%
 Net Interest Margin                                             4.03%
Non-Interest Bearing Demand Deposits
 (Domestic)                                 1,547.5
Other Liabilities                             321.6
Shareholders' Equity                        1,152.3
                                           ---------
Total Liabilities and Shareholders' Equity $9,804.4
                                           =========



                                                Nine Months Ended
                                               September 30, 2003
                                            Average   Income/  Yield/
(dollars in millions)                       Balance   Expense   Rate
----------------------------------------------------------------------
Earning Assets
Interest Bearing Deposits                    $230.2      $3.7    2.12%
Funds Sold                                    206.2       1.8    1.19
Investment Securities
 Held to Maturity                             402.4      11.9    3.94
 Available for Sale                         2,224.5      58.8    3.52
Loans Held for Sale                            48.1       1.9    5.40
Loans and Lease Financing
 Commercial and Industrial                    861.2      31.3    4.86
 Construction                                  95.3       3.3    4.65
 Commercial Mortgage                          650.6      28.6    5.87
 Residential Mortgage                       2,281.1     111.2    6.50
 Installment                                  532.2      39.2    9.85
 Home Equity                                  441.8      16.9    5.11
 Purchased Home Equity                        158.2       5.3    4.51
 Lease Financing                              488.5      16.7    4.58
----------------------------------------------------------------------
Total Loans and Lease Financing             5,508.9     252.5    6.12
Other                                          75.3       3.2    5.75
----------------------------------------------------------------------
Total Earning Assets                        8,695.6     333.8    5.12
Cash and Non-interest Bearing Deposits        330.1
Other Assets                                  392.3
                                           ---------
Total Assets                               $9,418.0
                                           =========

Interest Bearing Liabilities
Interest Bearing Deposits
 Domestic Deposits
    Demand                                 $1,185.9      $1.9    0.22%
    Savings                                 2,702.8      12.5    0.62
    Time                                    1,364.2      23.4    2.30
----------------------------------------------------------------------
 Total Domestic Deposits                    5,252.9      37.8    0.96
 Foreign Deposits
    Time Due to Banks                           2.1         -       -
    Other Time and Savings                     31.5       0.2    0.91
----------------------------------------------------------------------
 Total Foreign Deposits                        33.6       0.2    0.92
----------------------------------------------------------------------
Total Interest Bearing Deposits             5,286.5      38.0    0.96
Short-Term Borrowings                         763.3       7.4    1.29
Long-Term Debt                                362.3      15.7    5.80
----------------------------------------------------------------------
Total Interest Bearing Liabilities          6,412.1      61.1    1.27
----------------------------------------------------------------------
Net Interest Income                                    $272.7
                                                     =========
 Interest Rate Spread                                            3.85%
 Net Interest Margin                                             4.19%
Non-Interest Bearing Demand Deposits
 (Domestic)                                 1,726.2
Other Liabilities                             354.4
Shareholders' Equity                          925.3
                                           ---------
Total Liabilities and Shareholders' Equity $9,418.0
                                           =========

(1) Certain 2002 information has been reclassified to conform to 2003
    presentation.


Bank of Hawaii Corporation and Subsidiaries

Analysis of Change in Net Interest Income -- Tax
 Equivalent Basis (Unaudited)                                  Table 6
----------------------------------------------------------------------
                                 Three Months Ended September 30, 2003
                                       Compared to June 30, 2003
(dollars in millions)             Volume(1)   Rate(1)  Time(1)   Total
----------------------------------------------------------------------

Change in Interest Income:
Interest Bearing Deposits             $0.1     $(0.1)      $-      $-
Funds Sold                            (0.4)     (0.2)       -    (0.6)
Investment Securities
   Held to Maturity                    3.4      (0.1)       -     3.3
   Available for Sale                 (1.8)     (1.8)     0.3    (3.3)
Loans Held for Sale                   (0.4)        -        -    (0.4)
Loans and Lease Financing
   Commercial and Industrial           0.4       0.3      0.1     0.8
   Construction                        0.1      (0.1)       -       -
   Commercial Mortgage                (0.2)     (0.6)     0.1    (0.7)
   Residential Mortgage                0.1      (1.2)       -    (1.1)
   Installment                         0.5      (1.4)     0.1    (0.8)
   Home Equity                           -      (0.1)     0.1       -
   Purchased Home Equity              (0.2)     (1.1)       -    (1.3)
   Lease Financing                     0.1       0.1      0.1     0.3
----------------------------------------------------------------------
Total Loans and Lease Financing        0.8      (4.1)     0.5    (2.8)

Total Change in Interest Income        1.7      (6.3)     0.8    (3.8)
----------------------------------------------------------------------

Change in Interest Expense:
Interest Bearing Deposits
 (Domestic)
   Demand                              0.1      (0.3)       -    (0.2)
   Savings                               -      (1.1)       -    (1.1)
   Time                               (0.8)     (1.1)     0.1    (1.8)
----------------------------------------------------------------------
Total Interest Bearing Deposits       (0.7)     (2.5)     0.1    (3.1)
Short-Term Borrowings                  0.1      (0.5)     0.1    (0.3)
Long-Term Debt                        (0.7)     (0.4)     0.1    (1.0)
----------------------------------------------------------------------

Total Change in Interest Expense      (1.3)     (3.4)     0.3    (4.4)
----------------------------------------------------------------------

Change in Net Interest Income         $3.0     $(2.9)    $0.5    $0.6
======================================================================

(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

Loan Portfolio Balances (Unaudited)                            Table 7
----------------------------------------------------------------------
                             Sept. 30,   June 30,   Dec. 31, Sept. 30,
(dollars in millions)            2003       2003       2002    2002(1)
----------------------------------------------------------------------
Domestic
  Commercial
      Commercial and
       Industrial              $843.9     $808.5     $875.0    $863.3
      Commercial Mortgage       629.2      689.7      591.1     616.5
      Construction               92.3       83.6      127.5     146.3
      Lease Financing           426.9      416.9      427.3     433.6
----------------------------------------------------------------------
  Total Commercial            1,992.3    1,998.7    2,020.9   2,059.7
  Consumer
      Residential Mortgage    2,329.4    2,222.0    2,131.4   2,259.8
      Home Equity               446.0      450.3      428.2     419.2
      Purchased Home
       Equity                   109.8      145.6      185.8         -
      Other Consumer            582.9      554.8      493.3     421.6
      Lease Financing            35.3       34.0       34.5      36.5
----------------------------------------------------------------------
  Total Consumer              3,503.4    3,406.7    3,273.2   3,137.1
----------------------------------------------------------------------
Total Domestic                5,495.7    5,405.4    5,294.1   5,196.8
----------------------------------------------------------------------
Foreign                          74.7       66.5       64.9      62.5
----------------------------------------------------------------------
Total Loans                  $5,570.4   $5,471.9   $5,359.0  $5,259.3
======================================================================


Selected Concentrations of Credit Exposure (Unaudited)
----------------------------------------------------------------------
                       September 30, 2003         Dec. 31,  Sept. 30,
                                                       2002    2002(1)
(dollars in                      Unused    Total      Total      Total
 millions)      Outstanding Commitments Exposure   Exposure   Exposure
----------------------------------------------------------------------
Air
 Transportation
 Regional
  Passenger
  Carriers           $45.1       $12.5    $57.6      $57.3      $57.2
 United States
  Based
  Passenger
  Carriers            39.9           -     39.9       39.6       48.3
 International
  Based
  Passenger
  Carriers            31.7           -     31.7       32.1       32.2
 Cargo Carriers       14.4           -     14.4       15.0       15.0
----------------------------------------------------------------------
Total Air
 Transportation     $131.1       $12.5   $143.6     $144.0     $152.7
======================================================================
Guam
 Hotel               $17.8          $-    $17.8      $44.4     $104.7
 Other
  Commercial         147.2        35.9    183.1      166.0      134.6
 Consumer            271.0         6.5    277.5      257.4      250.6
----------------------------------------------------------------------
Total Guam          $436.0       $42.4   $478.4     $467.8     $489.9
======================================================================
Syndicated
 Exposure           $249.1      $624.4   $873.5   $1,002.1   $1,075.8
======================================================================

    Exposure includes loans, leveraged leases and operating leases.

(1) Certain 2002 information has been reclassified to conform to 2003
    presentation.



Bank of Hawaii Corporation and Subsidiaries

Consolidated Non-Performing Assets and Accruing Loans Past
 Due 90 Days or More  (Unaudited)                              Table 8
----------------------------------------------------------------------
                      Sept. 30, June 30, March 31,  Dec. 31, Sept. 30,
(dollars in millions)    2003      2003      2003      2002    2002(1)
----------------------------------------------------------------------
Non-Performing
 Assets
Non-Accrual Loans
    Commercial
       Commercial
        and
        Industrial       $7.8      $8.8      $2.4      $5.9      $6.4
       Commercial
        Mortgage         11.0      11.2      17.9      20.3      18.1
       Construction         -         -         -       0.5       0.9
       Lease
        Financing         2.4       2.5       3.2       4.1       5.7
----------------------------------------------------------------------
    Total Commercial     21.2      22.5      23.5      30.8      31.1
    Consumer
       Residential
        Mortgage          9.7      10.2      11.5      13.9      14.3
       Home Equity        0.5         -       0.1       0.3       0.2
       Other
        Consumer            -         -         -         -       0.1
----------------------------------------------------------------------
    Total Consumer       10.2      10.2      11.6      14.2      14.6
----------------------------------------------------------------------
Total Non-Accrual
 Loans                   31.4      32.7      35.1      45.0      45.7
----------------------------------------------------------------------
Foreclosed Real
 Estate                   8.7       9.3       9.1       9.4      17.6
----------------------------------------------------------------------
Total Non-Performing
 Assets                 $40.1     $42.0     $44.2     $54.4     $63.3
======================================================================

Accruing Loans Past
 Due 90 Days or More
    Commercial
       Commercial
        and
        Industrial       $0.7      $0.5        $-      $0.2        $-
       Commercial
        Mortgage            -         -       0.4       0.3         -
----------------------------------------------------------------------
    Total Commercial      0.7       0.5       0.4       0.5         -
    Consumer
       Residential
        Mortgage          2.0       1.8       1.6       0.6       1.4
       Home Equity          -       0.1         -         -         -
       Purchased
        Home Equity       0.1       0.1         -         -         -
       Other
        Consumer          1.1       0.4       2.3       0.7       0.3
----------------------------------------------------------------------
    Total Consumer        3.2       2.4       3.9       1.3       1.7
----------------------------------------------------------------------
Total Accruing and
 Past Due                $3.9      $2.9      $4.3      $1.8      $1.7
======================================================================
Total Loans          $5,570.4  $5,471.9  $5,565.4  $5,359.0  $5,259.3
======================================================================
Ratio of Non-Accrual
 Loans to Total
 Loans                   0.56%     0.60%     0.63%     0.84%     0.87%
----------------------------------------------------------------------
Ratio of Non-Performing Assets
 to Total Loans and
 Foreclosed Real
 Estate                  0.72%     0.77%     0.79%     1.01%     1.20%
----------------------------------------------------------------------
Ratio of Non-Performing Assets
 and Accruing Loans
 Past Due 90 Days or
 More to Total Loans     0.79%     0.82%     0.87%     1.05%     1.24%
----------------------------------------------------------------------

Quarter to Quarter Changes in
 Non-Performing Assets
 Balance at Beginning
 of Quarter             $42.0     $44.2     $54.4     $63.3     $78.8
    Additions             3.2      11.6       4.8      12.0       7.0
    Reductions
      Payments and
       Sales of
       Loans             (1.8)     (4.3)     (5.6)     (6.9)     (8.5)
      Return to
       Accrual           (1.5)     (7.5)     (5.6)     (1.9)     (9.1)
      Sales of
       Foreclosed
       Assets            (1.0)     (0.7)     (1.1)     (9.4)     (1.4)
      Charge-offs        (0.8)     (1.3)     (2.7)     (2.7)     (3.5)
----------------------------------------------------------------------
    Total Reductions     (5.1)    (13.8)    (15.0)    (20.9)    (22.5)

----------------------------------------------------------------------
Balance at End of
 Quarter                $40.1     $42.0     $44.2     $54.4     $63.3
======================================================================

(1) Certain 2002 information has been reclassified to conform to 2003
    presentation.


Bank of Hawaii Corporation and Subsidiaries

Consolidated Allowance for Loan and Lease Losses (Unaudited)   Table 9
----------------------------------------------------------------------
                           Three Months Ended       Nine Months Ended
                      Sept. 30, June 30,  Sept. 30,     Sept. 30,
(dollars in millions)     2003      2003    2002(1)     2003   2002(1)
----------------------------------------------------------------------

Balance at Beginning
 of Period              $138.0    $140.0    $159.0    $142.9   $159.0
Loans Charged-Off
   Commercial
     Commercial and
      Industrial          (1.1)     (0.6)     (0.9)     (3.3)   (11.0)
     Commercial
      Mortgage            (0.2)     (0.4)     (2.5)     (0.6)    (2.9)
     Construction            -         -         -      (0.5)    (0.5)
     Lease Financing         -      (0.3)     (0.1)     (0.3)    (0.3)
   Consumer
     Residential
      Mortgage            (0.2)     (0.7)     (0.6)     (1.5)    (3.0)
     Home Equity             -         -         -      (0.1)    (0.2)
     Other Consumer       (6.8)     (3.6)     (3.0)    (13.5)    (9.7)
     Lease Financing         -         -      (0.1)     (0.2)    (0.2)
----------------------------------------------------------------------
Total Charge-Offs         (8.3)     (5.7)     (7.2)    (20.0)   (27.8)
Recoveries on Loans
 Previously Charged-
 Off
   Commercial
     Commercial and
      Industrial           0.6       1.8       0.7       3.0      3.4
     Commercial
      Mortgage               -       0.1         -       0.1      2.0
     Construction            -       0.1         -       1.0        -
   Consumer
     Residential
      Mortgage             0.5       0.3       0.1       0.9      0.8
     Home Equity             -         -         -       0.1      0.1
     Other Consumer        1.5       1.3       1.5       4.2      4.8
     Lease Financing         -         -         -         -        -
   Foreign                 0.4         -       0.4       0.5      0.7
----------------------------------------------------------------------
Total Recoveries           3.0       3.6       2.7       9.8     11.7
----------------------------------------------------------------------
Net Loan Charge-Offs      (5.3)     (2.1)     (4.5)    (10.2)   (16.1)
Provision for Loan and
 Lease Losses                -         -         -         -     11.6
----------------------------------------------------------------------
Balance at End of
 Period                 $132.7    $138.0    $154.5    $132.7   $154.5
======================================================================
Average Loans
 Outstanding          $5,546.5  $5,518.4  $5,350.0  $5,508.9 $5,479.1
======================================================================

Ratio of Net Charge-
 Offs to Average Loans
 Outstanding
 (annualized)             0.38%     0.15%     0.33%     0.25%    0.39%

Ratio of Allowance to
 Loans Outstanding        2.38%     2.52%     2.94%     2.38%    2.94%


(1) Certain 2002 information has been reclassified to conform to 2003
    presentation.

Totals may not add due to rounding.



Bank of Hawaii Corporation and Subsidiaries

Information Technology Systems Replacement Project
 (Unaudited)                                                  Table 10
----------------------------------------------------------------------
                               Employee                   Other
(dollars in    Professional Termination  Accelerated Associated
 millions)             Fees    Benefits Depreciation   Costs(1)  Total
----------------------------------------------------------------------

Costs
 Incurred:
Three Months
 Ended:
   Sept. 30,
    2002              $1.9        $1.0         $3.2       $0.5   $6.6
   Dec. 31,
    2002               3.2         0.2          2.2        1.4    7.0
----------------------------------------------------------------------
Year Ended
 December 31,
 2002                  5.1         1.2          5.4        1.9   13.6
Three Months
 Ended:
   March 31,
    2003               3.5         0.4          2.0        1.5    7.4
   June 30,
    2003               2.9         2.6          1.8        2.8   10.1
   Sept. 30,
    2003               1.4         0.7          0.1        2.2    4.4
----------------------------------------------------------------------
Nine Months
 Ended Sept. 30,
 2003                  7.8         3.7          3.9        6.5   21.9
----------------------------------------------------------------------
Total Costs
 Incurred            $12.9        $4.9         $9.3       $8.4  $35.5
======================================================================

Total Expected
 Project Costs       $12.9        $4.9         $9.3       $8.4  $35.5
======================================================================

(1) Includes contract termination, equipment, excise tax and other
    costs.


Bank of Hawaii Corporation and Subsidiaries

Business Segment Selected Financial Information
 (Unaudited)                                                  Table 11
----------------------------------------------------------------------
                                    Investment    Treasury    Consoli-
(dollars in       Retail  Commercial  Services   and Other       dated
 thousands)      Banking     Banking     Group   Corporate       Total
----------------------------------------------------------------------
Three Months Ended
 Sept. 30, 2003

Net Interest
 Income         $51,317     $33,958    $3,001      $2,829     $91,105
Provision for
 Loan and
 Lease Losses    (2,451)     (3,549)        5       5,995           -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision
 for Loan and
 Lease Losses    48,866      30,409     3,006       8,824      91,105
Non-Interest
 Income          23,044      12,148    15,288       3,311      53,791
----------------------------------------------------------------------
                 71,910      42,557    18,294      12,135     144,896
Information
 Technology
 Systems
 Replacement
 Project            (36)          -         -      (4,313)     (4,349)
Non-Interest
 Expense        (44,240)    (22,313)  (15,763)     (2,212)    (84,528)
----------------------------------------------------------------------
Income Before
 Income Taxes    27,634      20,244     2,531       5,610      56,019
Provision for
 Income Taxes   (10,224)     (7,357)     (937)       (814)    (19,332)
----------------------------------------------------------------------
Allocated Net
 Income          17,410      12,887     1,594       4,796      36,687
----------------------------------------------------------------------
Allowance
 Funding
 Value             (152)       (940)       (7)      1,099           -
GAAP
 Provision        2,451       3,549        (5)     (5,995)          -
Economic
 Provision       (3,014)     (3,139)     (106)        (12)     (6,271)
Tax Effect of
 Adjustments        265         196        44       1,815       2,320
----------------------------------------------------------------------
Income Before
 Capital
 Charge          16,960      12,553     1,520       1,703      32,736
Capital
 Charge          (5,614)     (5,586)   (1,493)    (11,270)    (23,963)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital
 Charge
 (NIACC)        $11,346      $6,967       $27     $(9,567)     $8,773
======================================================================

RAROC (ROE
 for the
 Company)            33%         25%       11%          1%         17%
======================================================================

Total Assets
 at Sept. 30,
 2003        $3,507,960  $2,226,160  $140,735  $3,495,900  $9,370,755
======================================================================
Three Months Ended
 Sept. 30, 2002(1)

Net Interest
 Income         $49,432     $35,738    $3,219      $3,792     $92,181
Provision for
 Loan and
 Lease Losses      (722)     (4,456)      (76)      5,254           -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision
 for Loan and
 Lease Losses    48,710      31,282     3,143       9,046      92,181
Non-Interest
 Income          19,897       8,295    16,640       2,205      47,037
----------------------------------------------------------------------
                 68,607      39,577    19,783      11,251     139,218
Information
 Technology
 Systems
 Replacement
 Project           (587)          -         -      (5,989)     (6,576)
Non-Interest
 Expense        (42,628)    (24,260)  (15,711)     (2,568)    (85,167)
----------------------------------------------------------------------
Income Before
 Income Taxes    25,392      15,317     4,072       2,694      47,475
Provision for
 Income Taxes    (9,395)     (5,587)   (1,507)       (786)    (17,275)
----------------------------------------------------------------------
Allocated Net
 Income          15,997       9,730     2,565       1,908      30,200
----------------------------------------------------------------------
Allowance
 Funding
 Value             (201)     (1,507)       (8)      1,716           -
GAAP
 Provision          722       4,456        76      (5,254)          -
Economic
 Provision       (3,128)     (3,340)     (121)         (7)     (6,596)
Tax Effect of
 Adjustments        965         144        20       1,312       2,441
----------------------------------------------------------------------
Income (Loss)
 Before
 Capital
 Charge          14,355       9,483     2,532        (325)     26,045
Capital
 Charge          (5,216)     (5,814)   (1,475)    (19,176)    (31,681)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital
 Charge
 (NIACC)         $9,139      $3,669    $1,057    $(19,501)    $(5,636)
======================================================================

RAROC (ROE
 for the
 Company)            30%         18%       19%          0%         10%
======================================================================

Total Assets
 at Sept. 30,
 2002        $3,135,752  $2,325,782  $118,625  $4,122,541  $9,702,700
======================================================================

(1) Certain 2002 information has been reclassified to conform to 2003
    presentation.


Bank of Hawaii Corporation and Subsidiaries

Business Segment Selected Financial Information
(Unaudited)                                                  Table 11a
----------------------------------------------------------------------
                                    Investment    Treasury    Consoli-
(dollars in       Retail  Commercial  Services   and Other       dated
 thousands)      Banking     Banking     Group   Corporate       Total
----------------------------------------------------------------------
Nine Months Ended
 Sept. 30, 2003

Net Interest
 Income        $156,518    $102,981    $9,664      $3,427    $272,590
Provision for
 Loan and
 Lease Losses    (4,620)     (6,721)        5      11,336           -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision
 for Loan and
 Lease Losses   151,898      96,260     9,669      14,763     272,590
Non-Interest
 Income          64,328      28,507    46,396      10,052     149,283
----------------------------------------------------------------------
                216,226     124,767    56,065      24,815     421,873
Information
 Technology
 Systems
 Replacement
 Project           (986)        (23)     (333)    (20,529)    (21,871)
Non-Interest
 Expense       (127,035)    (68,237)  (47,604)     (9,724)   (252,600)
----------------------------------------------------------------------
Income (Loss)
 Before
 Income Taxes    88,205      56,507     8,128      (5,438)    147,402
Provision for
 Income Taxes   (32,636)    (20,560)   (3,007)      5,323     (50,880)
----------------------------------------------------------------------
Allocated Net
 Income
 (Loss)          55,569      35,947     5,121        (115)     96,522
----------------------------------------------------------------------
Allowance
 Funding
 Value             (465)     (3,181)      (23)      3,669           -
GAAP
 Provision        4,620       6,721        (5)    (11,336)          -
Economic
 Provision       (8,623)     (9,225)     (350)        (22)    (18,220)
Tax Effect of
 Adjustments      1,653       2,103       140       2,845       6,741
----------------------------------------------------------------------
Income (Loss)
 Before
 Capital
 Charge          52,754      32,365     4,883      (4,959)     85,043
Capital
 Charge         (16,500)    (16,314)   (4,523)    (39,008)    (76,345)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital
 Charge
 (NIACC)        $36,254     $16,051      $360    $(43,967)     $8,698
======================================================================

RAROC (ROE
 for the
 Company)            35%         22%       12%        (1)%         14%
======================================================================

Total Assets
 at Sept. 30,
 2003        $3,507,960  $2,226,160  $140,735  $3,495,900  $9,370,755
======================================================================
Nine Months  Ended
 Sept. 30, 2002(1)

Net Interest
 Income        $153,306    $108,380    $9,640      $8,687    $280,013
Provision for
 Loan and
 Lease Losses    (3,213)    (14,061)      (76)      5,734     (11,616)
----------------------------------------------------------------------
Net Interest
 Income After
 Provision
 for Loan and
 Lease Losses   150,093      94,319     9,564      14,421     268,397
Non-Interest
 Income          62,384      25,681    51,840       8,075     147,980
----------------------------------------------------------------------
                212,477     120,000    61,404      22,496     416,377
Restructuring
 and Other
 Related
 Costs                -           -         -      (1,979)     (1,979)
Information
 Technology
 Systems
 Replacement
 Project           (587)          -         -      (5,989)     (6,576)
Non-Interest
 Expense       (133,454)    (73,604)  (49,830)     (7,093)   (263,981)
----------------------------------------------------------------------
Income Before
 Income Taxes    78,436      46,396    11,574       7,435     143,841
Provision for
 Income Taxes   (29,021)    (16,927)   (4,283)     (1,338)    (51,569)
----------------------------------------------------------------------
Allocated Net
 Income          49,415      29,469     7,291       6,097      92,272
----------------------------------------------------------------------
Allowance
 Funding
 Value             (672)     (4,656)      (19)      5,347           -
GAAP
 Provision        3,213      14,061        76      (5,734)     11,616
Economic
 Provision       (8,536)    (11,247)     (372)         (9)    (20,164)
Tax Effect of
 Adjustments      2,218         682       117         146       3,163
----------------------------------------------------------------------
Income Before
 Capital
 Charge          45,638      28,309     7,093       5,847      86,887
Capital
 Charge         (15,787)    (18,423)   (4,596)    (62,026)   (100,832)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital
 Charge
 (NIACC)        $29,851      $9,886    $2,497    $(56,179)   $(13,945)
======================================================================

RAROC (ROE
 for the
 Company)            32%         17%       17%         13%         10%
======================================================================

Total Assets
 at Sept. 30,
 2002        $3,135,752  $2,325,782  $118,625  $4,122,541  $9,702,700
======================================================================

(1) Certain 2002 information has been reclassified to conform to 2003
    presentation.


Bank of Hawaii Corporation and Subsidiaries

Quarterly Summary of Selected Consolidated Financial Data
 (Unaudited)                                                  Table 12
----------------------------------------------------------------------
                                           Three Months Ended (1)
(dollars in thousands except per       Sept. 30,   June 30,  March 31,
 share amounts)                            2003       2003       2003
----------------------------------------------------------------------
Quarterly Operating Results
Interest Income
   Interest and Fees on Loans and
    Leases                              $82,715    $85,954    $85,773
   Income on Investment Securities -
    Held to Maturity                      6,407      3,083      2,283
   Income on Investment Securities -
    Available for Sale                   16,483     19,815     22,463
   Deposits                               1,179      1,161      1,307
   Funds Sold                               248        822        764
   Other                                  1,032      1,016      1,189
----------------------------------------------------------------------
Total Interest Income                   108,064    111,851    113,779
Interest Expense
   Deposits                              10,284     13,309     14,447
   Security Repurchase Agreements         1,947      2,391      2,242
   Funds Purchased                          271        219        205
   Short-Term Borrowings                     26         25         24
   Long-Term Debt                         4,431      5,422      5,861
----------------------------------------------------------------------
Total Interest Expense                   16,959     21,366     22,779
----------------------------------------------------------------------
Net Interest Income                      91,105     90,485     91,000
Provision for Loan and Lease Losses           -          -          -
----------------------------------------------------------------------
Net Interest Income After Provision
 for Loan and Lease Losses               91,105     90,485     91,000
Non-Interest Income
   Trust and Asset Management            12,511     12,545     13,181
   Mortgage Banking                       5,888      6,061        283
   Service Charges on Deposit
    Accounts                              8,901      8,645      8,950
   Fees, Exchange, and Other Service
    Charges                              16,034     13,473     12,989
   Investment Securities Gains              639        587        583
   Insurance                              3,988      3,015      3,080
   Other                                  5,830      6,413      5,687
----------------------------------------------------------------------
Total Non-Interest Income                53,791     50,739     44,753
Non-Interest Expense
   Salaries                              36,873     39,232     36,459
   Pensions and Other Employee
    Benefits                              8,858      8,479      9,970
   Net Occupancy Expense                  9,806      9,628      9,613
   Net Equipment Expense                  7,301      9,208      9,748
   Restructuring and Other Related
    Costs                                     -          -          -
   Information Technology Systems
    Replacement Project                   4,349     10,105      7,417
   Other                                 21,690     18,742     16,993
----------------------------------------------------------------------
Total Non-Interest Expense               88,877     95,394     90,200
----------------------------------------------------------------------
Income Before Income Taxes               56,019     45,830     45,553
Provision for Income Taxes               19,332     15,796     15,752
----------------------------------------------------------------------
Net Income                              $36,687    $30,034    $29,801
======================================================================

Basic Earnings Per Share                  $0.64      $0.50      $0.49
Diluted Earnings Per Share                $0.61      $0.48      $0.47

Balance Sheet Totals
Total Assets                          9,370,755  9,550,934  9,410,210
Net Loans                             5,437,730  5,333,896  5,425,343
Total Deposits                        7,102,116  7,140,849  6,987,331
Total Shareholders' Equity              823,760    913,010    952,007

Performance Ratios
Return on Average Assets                   1.53%      1.27%      1.31%
Return on Average Equity                  16.69%     12.93%     12.42%
Efficiency Ratio                          61.34%     67.55%     66.44%
Efficiency Ratio excluding ITSRP and
 Restructuring Costs                      58.34%     60.39%     60.98%



(dollars in thousands                 Three Months Ended (1)
 except per share           Dec. 31,  Sept. 30,   June 30,   March 31,
 amounts)                      2002       2002       2002        2002
----------------------------------------------------------------------
Quarterly Operating
 Results
Interest Income
   Interest and Fees on
    Loans and Leases        $85,945    $89,335    $92,441     $98,645
   Income on Investment
    Securities - Held to
    Maturity                  3,122      3,963      4,544       5,145
   Income on Investment
    Securities -
    Available for Sale       24,088     26,175     26,805      27,193
   Deposits                   3,578      5,384      6,011       5,047
   Funds Sold                   834        914        752       1,003
   Other                      1,312      1,575      1,395       1,332
----------------------------------------------------------------------
Total Interest Income       118,879    127,346    131,948     138,365
Interest Expense
   Deposits                  17,657     20,547     22,166      23,978
   Security Repurchase
    Agreements                4,585      7,039      8,256      10,293
   Funds Purchased              255        299        245         231
   Short-Term Borrowings        217        334        289         649
   Long-Term Debt             5,947      6,946      8,055       8,319
----------------------------------------------------------------------
Total Interest Expense       28,661     35,165     39,011      43,470
----------------------------------------------------------------------
Net Interest Income          90,218     92,181     92,937      94,895
Provision for Loan and
 Lease Losses                     -          -      3,324       8,292
----------------------------------------------------------------------
Net Interest Income After
 Provision for Loan and
 Lease Losses                90,218     92,181     89,613      86,603
Non-Interest Income
   Trust and Asset
    Management               13,085     13,655     14,175      14,818
   Mortgage Banking           4,398      3,669      2,842       7,957
   Service Charges on
    Deposit Accounts          8,326      7,925      7,956       8,410
   Fees, Exchange, and
    Other Service Charges    12,963     13,114     13,065      12,452
   Investment Securities
    Gains                       612          -          3           -
   Insurance                  3,099      2,677      2,563       2,599
   Other                      7,872      5,997      7,314       6,789
----------------------------------------------------------------------
Total Non-Interest Income    50,355     47,037     47,918      53,025
Non-Interest Expense
   Salaries                  38,462     37,994     37,884      39,187
   Pensions and Other
    Employee Benefits         6,272      7,377      9,391       9,996
   Net Occupancy Expense     10,638      9,597      9,321       9,593
   Net Equipment Expense     11,077     10,058      9,997      10,121
   Restructuring and
    Other Related Costs         385          -          -       1,979
   Information Technology
    Systems Replacement
    Project                   7,052      6,576          -           -
   Other                     22,827     20,141     22,777      20,547
----------------------------------------------------------------------
Total Non-Interest
 Expense                     96,713     91,743     89,370      91,423
----------------------------------------------------------------------
Income Before Income
 Taxes                       43,860     47,475     48,161      48,205
Provision for Income
 Taxes                       14,952     17,275     17,145      17,149
----------------------------------------------------------------------
Net Income                  $28,908    $30,200    $31,016     $31,056
======================================================================

Basic Earnings Per Share      $0.45      $0.44      $0.43       $0.42
Diluted Earnings Per
 Share                        $0.44      $0.43      $0.42       $0.41

Balance Sheet Totals
Total Assets              9,516,418  9,702,700  9,824,065  10,245,021
Net Loans                 5,216,151  5,104,857  5,250,216   5,442,601
Total Deposits            6,920,161  6,627,673  6,455,981   6,543,781
Total Shareholders'
 Equity                   1,015,759  1,100,706  1,191,072   1,265,907

Performance Ratios
Return on Average Assets       1.20%      1.22%      1.23%       1.21%
Return on Average Equity      10.72%     10.40%      9.94%       9.97%
Efficiency Ratio              68.80%     65.90%     63.45%      61.81%
Efficiency Ratio
 excluding ITSRP and
 Restructuring Costs          63.51%     61.18%     63.45%      60.47%

(1) Certain 2002 information has been reclassified to conform to 2003
    presentation.

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