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Bank of Hawaii Corporation Third Quarter 2004 Financial Results

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HONOLULU--(BUSINESS WIRE)--Oct. 25, 2004--Bank of Hawaii Corporation (NYSE:BOH)

  • Diluted Earnings Per Share $0.78, Year-to-Date Earnings Per Share $2.26
  • Net Income of $43.1 Million, Year-to-Date Net Income $127.1 Million
  • Board of Directors Declares Dividend of $0.33 Per Share, Up 10 Percent

Bank of Hawaii Corporation (NYSE:BOH) today reported diluted earnings per share of $0.78 for the third quarter of 2004, down $0.01 or 1.3 percent from $0.79 in the second quarter of 2004, and up $0.17 or 27.9 percent from $0.61 reported in the comparable quarter last year. Net income for the third quarter of 2004 was $43.1 million, down $1.2 million or 2.6 percent from $44.2 million in the previous quarter and up $6.4 million or 17.4 percent from $36.7 million reported in the same quarter last year.

Return on average assets for the third quarter of 2004 was 1.77 percent, down slightly from 1.80 percent in the second quarter of 2004, and up from 1.53 percent in the third quarter of 2003. Return on average equity was 23.42 percent for the third quarter of 2004, down from 24.28 percent in the previous quarter and up from 16.69 percent in the same quarter last year.

For nine months ended September 30, 2004, net income was $127.1 million, up $30.6 million or 31.7 percent from net income of $96.5 million for the same period last year. Diluted earnings per share were $2.26 for the first nine months of 2004, an increase of 44.9 percent from diluted earnings per share of $1.56 for the comparable period last year. The year-to-date return on average assets was 1.74 percent, up from 1.37 percent for the same nine months in 2003. The year-to-date return on average equity was 22.48 percent, up from 13.95 percent for the nine-month period ended September 30, 2003.

"Bank of Hawaii had another good quarter and I am pleased by the ongoing improvement demonstrated by our financial results," said Allan R. Landon, Chairman, CEO and President. "The Hawaii economy remains solid and we remain confident that we are well on the way to achieving the goals of our three-year plan."

Financial Highlights

Net interest income, on a taxable equivalent basis, for the third quarter of 2004 was $98.8 million, up $2.9 million from net interest income of $95.9 million in the second quarter of 2004, and up $7.7 million from net interest income of $91.1 million in the third quarter of 2003. An analysis of the change in net interest income is included in Table 6.

The net interest margin was 4.39 percent for the third quarter of 2004, up 22 basis points from the net interest margin of 4.17 percent in the previous quarter and up 24 basis points from 4.15 percent in the same quarter last year. The increase in the net interest margin from the previous quarter was largely due to higher average balances of short-term investments in the second quarter of 2004. In addition, the margin was further improved in the third quarter of 2004 as a result of increased yields on earnings assets, stable interest rates paid on deposits and continuing reductions in short-term borrowings and long-term debt.

Credit quality continued to improve during the quarter. The Company did not recognize a provision for loan and lease losses during the third quarter of 2004. A negative provision of $3.5 million was recognized in the previous quarter. The allowance for loan and lease losses was reduced $0.3 million from June 30, 2004, which equaled the amount of net charge-offs for the third quarter of 2004.

Non-interest income was $53.1 million for the third quarter of 2004 compared to non-interest income of $54.8 million in the second quarter of 2004 and $53.8 million in the third quarter of 2003. Non-interest income in the third quarter of 2004 included a gain of $5.2 million on the sale of assets at the end of a leveraged lease transaction, compared to the previous quarter which included a partnership distribution of $3.2 million and a gain of $2.5 million on the sale of land. Included in the third quarter of 2003 was a $3.1 million prepayment fee on a commercial real estate loan. Excluding these items, non-interest income decreased from the second quarter of 2004 by $1.4 million largely due to a decline in gains on the sale of mortgage loans.

Non-interest expense for the third quarter of 2004 was $84.2 million, down $0.9 million from $85.1 million in the previous quarter and down $4.7 million or 5.3 percent from non-interest expense of $88.9 million in the third quarter of 2003. The decrease from the previous quarter was largely the result of $2.2 million recorded in the second quarter primarily related to a legal settlement. Non-interest expense in the third quarter of 2003 included $4.3 million in systems replacement costs.

The efficiency ratio was 55.45 percent for the third quarter of 2004, down from 56.49 percent in the second quarter of 2004 and 61.34 percent in the third quarter of 2003. Excluding systems replacement costs, the efficiency ratio was 58.34 percent in the third quarter of 2003. For nine months ended September 30, 2004, the efficiency ratio was 56.40 percent compared to 65.06 percent for the same period in 2003. Excluding systems replacement costs, the efficiency ratio was 59.88 percent for the nine-month 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. Business segment performance details are summarized in Table 11a and 11b.

Asset Quality

Non-performing assets declined to $16.0 million at the end of the third quarter of 2004, a decrease of $5.2 million, or 24.5 percent, from non-performing assets of $21.2 million at the end of the second quarter of 2004. Non-performing assets decreased $24.2 million, or 60.2 percent, compared to non-performing assets of $40.1 million at the end of the same quarter last year. At September 30, 2004, the ratio of non-performing assets to total loans and foreclosed real estate was 0.27 percent, down from 0.37 percent at June 30, 2004 and down from 0.72 percent at September 30, 2003.

Non-accrual loans were $15.8 million at September 30, 2004, a reduction of $0.5 million, or 3.1 percent, from $16.3 million at June 30, 2004 and down $15.6 million, or 49.8 percent, from $31.4 million at September 30, 2003. Non-accrual loans as a percentage of total loans were 0.27 percent at September 30, 2004, down from 0.28 percent at the end of the previous quarter and down from 0.56 percent at the end of the comparable quarter last year.

Net charge-offs were $0.3 million in the third quarter of 2004, or 0.02 percent (annualized) of total average loans. Charge-offs of $5.0 million during the third quarter of 2004 were offset by recoveries of $4.7 million. Net charge-offs were in a net recovery position of $1.2 million in the second quarter of 2004 as recoveries of $10.0 million more than offset charge-offs of $8.8 million. Net charge-offs during the third quarter of 2003 were $5.3 million, or 0.38 percent (annualized) of total average loans. Net charge-offs for the first nine months of 2004 were $0.9 million, or 0.02 percent (annualized) of total average loans. In the same period last year, net charge-offs were $10.2 million, or 0.25 percent (annualized) of total average loans.

The allowance for loan and lease losses was $124.7 million at September 30, 2004. The ratio of the allowance for loan and lease losses to total loans was 2.14 percent at September 30, 2004 compared with 2.16 percent at June 30, 2004 and 2.38 percent at the end of the same quarter last year.

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

Other Financial Highlights

Total assets were $9.59 billion at September 30, 2004, a decrease from total assets of $9.69 billion at June 30, 2004 and an increase from total assets of $9.37 billion at September 30, 2003. The decrease from the previous quarter was largely due to a reduction in short-term assets that were utilized to pay down debt. Total loans and leases were $5.82 billion at September 30, 2004, up from $5.79 billion at June 30, 2004 and $5.57 billion at September 30, 2003. The increase in total loans and leases is due to ongoing growth in consumer lending. Commercial loan originations remain strong, but were offset by loan prepayments during the quarter.

Total deposits at September 30, 2004 were $7.41 billion, down from total deposits of $7.47 billion at June 30, 2004 and up from total deposits of $7.10 billion at September 30, 2003. The decrease from the previous quarter was mostly due to a reduction in custodial deposits related to mortgage banking activity and a continuation of the decline in time deposits. The Company had a net increase of approximately 2,000 non-interest bearing checking accounts during the quarter.

During the third quarter of 2004, Bank of Hawaii Corporation repurchased 0.7 million shares of common stock at a total cost of $31.4 million under its share repurchase program. The average cost was $46.08 per share repurchased during the quarter. From the beginning of the share repurchase program in July 2001 through September 30, 2004, the Company repurchased a total of 33.9 million shares and returned a total of $1,037.1 million to the shareholders at an average cost of $30.59 per share. From October 1, 2004 through October 22, 2004, the Company repurchased an additional 0.1 million shares of common stock at an average cost of $49.11 per share. Remaining buyback authority under the share repurchase program was $108.9 million at October 22, 2004.

The Company's capital and liquidity remain strong. At September 30, 2004, the Tier 1 leverage ratio was 7.69 percent compared to 7.16 percent at June 30, 2004 and 8.52 percent at September 30, 2003.

The Company's Board of Directors has declared a quarterly cash dividend of $0.33 per share on the Company's outstanding shares, an increase of $0.03 per share or 10.0 percent. The dividend will be payable on December 14, 2004 to shareholders of record at the close of business on November 29, 2004.

Economic Outlook

Hawaii's economy continued to grow during the third quarter of 2004. Tourism remains strong and is on track to establish 2004 as a record year in terms of total visitors. Hawaii's unemployment rate fell below 3.0 percent, the lowest in the country, as job growth continued in excess of 2.0 percent. Real estate transactions and valuations continued to increase and military housing privatization initiatives are expected to augment private construction growth, beginning in the fourth quarter of 2004. These trends are expected to drive capital spending forward for several more years. A rise in core inflation in the Honolulu consumer price index (CPI) from around 1.5 percent to 3.0 percent during the first half of 2004 may indicate the state economy is approaching full employment. However, Hawaii's real personal income growth remains stable at 2.0 percent to 3.0 percent in 2004, as it has since 1997.

Earnings Outlook

Bank of Hawaii Corporation currently anticipates net income for the full year of 2004 will be approximately $166 million to $168 million. Based on present conditions, the Company does not expect to record a provision for loan and lease losses during the fourth quarter of 2004. However, the actual amount of the provision for loan and lease losses depends on determinations of credit risk that are made near the end of each quarter. Earnings per share and return on average equity projections continue to be dependent upon the terms and timing of share repurchases.

Conference Call Information

The Company will review its third quarter 2004 financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The presentation will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation's web site, www.boh.com. The conference call number is 800-599-9795 in the United States or 617-786-2905 for international callers. No confirmation code is required to access the call. A replay will be available for one week beginning Monday, October 25, 2004 by calling 888-286-8010 in the United States or 617-801-6888 for international callers and entering the number 83955183 when prompted. A replay of the presentation will also be available via the Investor Relations link of the Company's web site.

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

Forward-Looking Statements

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


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

Net Income                       $43,067  $36,687   $127,098  $96,522
Basic Earnings Per Share            0.82     0.64       2.40     1.63
Diluted Earnings Per Share          0.78     0.61       2.26     1.56
Cash Dividends                    15,904   10,887     48,126   33,819
Net Income to Average Total
 Assets (ROA)                       1.77%    1.53%      1.74%    1.37%
Net Income to Average
 Shareholders' Equity (ROE)        23.42%   16.69%     22.48%   13.95%
Net Interest Margin                 4.39%    4.15%      4.29%    4.19%
Efficiency Ratio (1)               55.45%   61.34%     56.40%   65.06%
Efficiency Ratio excluding
 Systems Replacement Costs         55.45%   58.34%     56.40%   59.88%


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


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

Total Assets                                   $9,594,809  $9,370,755
Net Loans                                       5,690,924   5,437,730
Total Deposits                                  7,413,240   7,102,116
Total Shareholders' Equity                        756,707     823,760

Book Value Per Common Share                        $14.27      $14.71
Allowance / Loans and Leases
 Outstanding                                         2.14%       2.38%
Average Equity / Average Assets                      7.75%       9.82%
Employees (FTE)                                     2,655       2,764
Branches and offices                                   88          89

Market Price Per Share of Common
 Stock for the Quarter Ended:
                                     Closing       $47.25      $33.58
                                     High          $48.07      $35.55
                                     Low           $43.55      $32.92

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


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)                  Table 2
----------------------------------------------------------------------
(dollars in thousands    Three Months Ended       Nine Months Ended
 except per share           September 30,           September 30,
 amounts)                 2004        2003        2004        2003
----------------------------------------------------------------------
Interest Income
  Interest and Fees on
   Loans and Leases       $82,079     $82,715    $243,853    $254,442
  Income on Investment
   Securities -
   Available for Sale      24,543      16,483      67,134      58,761
  Income on Investment
   Securities - Held
   to Maturity              6,370       6,407      20,057      11,773
  Deposits                    496       1,179       3,373       3,647
  Funds Sold                  108         248         702       1,834
  Other                       801       1,032       2,524       3,237
----------------------------------------------------------------------
Total Interest Income     114,397     108,064     337,643     333,694
----------------------------------------------------------------------
Interest Expense
  Deposits                  8,990      10,284      26,750      38,040
  Securities Sold
   Under Agreements to
   Repurchase               2,085       1,947       6,233       6,580
  Funds Purchased             683         271       1,420         695
  Short-Term
   Borrowings                  15          26          43          75
  Long-Term Debt            3,845       4,431      12,538      15,714
----------------------------------------------------------------------
Total Interest Expense     15,618      16,959      46,984      61,104
----------------------------------------------------------------------
Net Interest Income        98,779      91,105     290,659     272,590
Provision for Loan and
 Lease Losses                   -           -      (3,500)          -
----------------------------------------------------------------------
Net Interest Income
 After Provision for
 Loan and Lease Losses     98,779      91,105     294,159     272,590
----------------------------------------------------------------------
Non-Interest Income
  Trust and Asset
   Management              12,672      12,511      39,531      38,237
  Mortgage Banking          1,711       5,888       6,496      12,232
  Service Charges on
   Deposit Accounts         9,472       8,901      28,962      26,496
  Fees, Exchange, and
   Other Service
   Charges                 13,741      16,034      41,223      42,496
  Investment
   Securities Gains
   (Losses)                     -         639         (37)      1,809
  Insurance                 3,560       3,988      10,506      10,083
  Other                    11,898       5,830      30,063      17,930
----------------------------------------------------------------------
Total Non-Interest
 Income                    53,054      53,791     156,744     149,283
----------------------------------------------------------------------
Non-Interest Expense
  Salaries and
   Benefits                46,566      45,731     139,256     139,871
  Net Occupancy
   Expense                  9,812       9,806      28,741      29,047
  Net Equipment
   Expense                  5,847       7,301      17,610      26,257
  Information
   Technology Systems
   Replacement Project          -       4,349           -      21,871
  Other                    21,965      21,690      66,730      57,425
----------------------------------------------------------------------
Total Non-Interest
 Expense                   84,190      88,877     252,337     274,471
----------------------------------------------------------------------
Income Before Income
 Taxes                     67,643      56,019     198,566     147,402
Provision for Income
 Taxes                     24,576      19,332      71,468      50,880
----------------------------------------------------------------------
Net Income                $43,067     $36,687    $127,098     $96,522
======================================================================
Basic Earnings Per
 Share                      $0.82       $0.64       $2.40       $1.63
Diluted Earnings Per
 Share                      $0.78       $0.61       $2.26       $1.56
Dividends Declared Per
 Share                      $0.30       $0.19       $0.90       $0.57
Basic Weighted Average
 Shares                52,390,081  57,195,570  53,053,770  59,337,319
Diluted Weighted
 Average Shares        55,472,868  59,961,823  56,297,277  61,911,794
======================================================================


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition                           Table 3
----------------------------------------------------------------------
                                     Sept. 30,    Dec. 31,   Sept. 30,
(dollars in thousands)                   2004        2003        2003
----------------------------------------------------------------------
                                   (Unaudited)             (Unaudited)
Assets
Interest-Bearing Deposits             $29,976    $154,735    $208,712
Investment Securities - Available
 for Sale                           2,328,327   1,991,116   2,027,062
Investment Securities - Held to
 Maturity
  (Market Value of $624,587,
   $720,699, and $749,036)            630,276     727,233     754,659
Funds Sold                             25,000           -           -
Loans Held for Sale                    18,595       9,211      23,144
Loans and Leases                    5,815,575   5,757,175   5,570,405
  Allowance for Loan and Lease
   Losses                            (124,651)   (129,080)   (132,675)
----------------------------------------------------------------------
    Net Loans                       5,690,924   5,628,095   5,437,730
----------------------------------------------------------------------
Total Earning Assets                8,723,098   8,510,390   8,451,307
----------------------------------------------------------------------
Cash and Non-Interest-Bearing
 Deposits                             290,974     363,495     329,705
Premises and Equipment                149,698     160,005     163,277
Customers' Acceptance Liability           920       1,707       1,077
Accrued Interest Receivable            36,074      32,672      33,210
Foreclosed Real Estate                    208       4,377       8,757
Mortgage Servicing Rights              19,995      22,178      23,266
Goodwill                               36,216      36,216      36,216
Other Assets                          337,626     330,607     323,940
----------------------------------------------------------------------
Total Assets                       $9,594,809  $9,461,647  $9,370,755
======================================================================
Liabilities
Deposits
  Non-Interest-Bearing Demand      $1,898,602  $1,933,928  $1,846,030
  Interest-Bearing Demand           1,471,836   1,356,330   1,269,227
  Savings                           2,991,386   2,833,379   2,760,418
  Time                              1,051,416   1,209,142   1,226,441
----------------------------------------------------------------------
Total Deposits                      7,413,240   7,332,779   7,102,116
----------------------------------------------------------------------
Securities Sold Under Agreements
 to Repurchase                        682,630     472,757     646,890
Funds Purchased                        69,755     109,090      90,520
Short-Term Borrowings                  11,939      12,690      14,796
Banker's Acceptances Outstanding          920       1,707       1,077
Retirement Benefits Payable            62,976      61,841      63,281
Accrued Interest Payable                6,162       7,483       7,207
Taxes Payable and Deferred Taxes      249,265     207,101     195,628
Other Liabilities                      88,596     138,999     101,179
Long-Term Debt                        252,619     324,068     324,301
----------------------------------------------------------------------
Total Liabilities                   8,838,102   8,668,515   8,546,995
----------------------------------------------------------------------
Shareholders' Equity
Common Stock ($.01 par value);
 authorized 500,000,000 shares;
 issued / outstanding: September
 2004 - 81,710,695 / 53,021,591,
 December 2003 - 81,647,729 /
 54,928,480, September 2003 -
 81,568,791 / 55,985,364                  813         807         807
Capital Surplus                       413,696     391,701     385,694
Accumulated Other Comprehensive
 Income (Loss)                         (5,698)     (5,711)     (2,799)
Retained Earnings                   1,277,615   1,199,077   1,177,459
Deferred Stock Grants                  (9,490)     (8,309)     (7,466)
Treasury Stock, at Cost (Shares:
 September 2004 - 28,689,104,
 December 2003 - 26,719,249,
 September 2003 - 25,583,427)        (920,229)   (784,433)   (729,935)
----------------------------------------------------------------------
Total Shareholders' Equity            756,707     793,132     823,760
----------------------------------------------------------------------
Total Liabilities and
 Shareholders' Equity              $9,594,809  $9,461,647  $9,370,755
======================================================================


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

Balance at December 31, 2003   $793,132     $807   $391,701   $(5,711)
Comprehensive Income:
  Net Income                    127,098        -          -         -
  Other Comprehensive
   Income, Net of Tax:
    Change in Unrealized
     Gains and Losses on
     Investment Securities           13        -          -        13
  Total Comprehensive Income

Common Stock Issued under
 Stock Plans and Related Tax
 Benefits (2,305,545 shares)     71,984        6     21,995         -
Treasury Stock Purchased
 (4,209,363 shares)            (187,394)       -          -         -
Cash Dividends Paid             (48,126)       -          -         -
----------------------------------------------------------------------
Balance at September 30,
 2004                          $756,707     $813   $413,696   $(5,698)
======================================================================

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 under
 Stock Plans and Related
 Tax Benefits (1,143,267
 shares)                         25,491        1     13,502         -
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)
======================================================================


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

Balance at December 31, 2003 $1,199,077  $(8,309) $(784,433)
Comprehensive Income:
  Net Income                    127,098        -          -  $127,098
  Other Comprehensive
   Income, Net of Tax:
    Change in Unrealized
     Gains and Losses on
     Investment Securities            -        -          -        13
                                                             ---------
  Total Comprehensive Income                                 $127,111
                                                             =========

Common Stock Issued under
 Stock Plans and Related Tax
 Benefits (2,305,545 shares)       (434)  (1,181)    51,598
Treasury Stock Purchased
 (4,209,363 shares)                   -        -   (187,394)
Cash Dividends Paid             (48,126)       -          -
------------------------------------------------------------
Balance at September 30,
 2004                        $1,277,615  $(9,490) $(920,229)
============================================================

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 under
 Stock Plans and Related
 Tax Benefits (1,143,267
 shares)                         (1,154)  (6,042)    19,184
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)
============================================================


Bank of Hawaii Corporation and Subsidiaries
Consolidated Average Balances and Interest Rates - Taxable
 Equivalent Basis (Unaudited)                                  Table 5
----------------------------------------------------------------------
                        Three Months Ended       Three Months Ended
                        September 30, 2004         June 30, 2004
(dollars in            Average Income/ Yield/   Average Income/ Yield/
 millions)             Balance Expense   Rate   Balance Expense   Rate
----------------------------------------------------------------------
Earning Assets
Interest-Bearing
 Deposits               $82.6    $0.5   2.39%   $408.8    $1.6   1.62%
Funds Sold               28.6     0.1   1.51      71.3     0.2   0.99
Investment
 Securities
  Available for Sale  2,325.5    24.6   4.23   2,148.9    21.8   4.06
  Held to Maturity      659.0     6.3   3.87     709.8     6.7   3.78
Loans Held for Sale      11.3     0.2   5.74      20.7     0.3   5.54
Loans and Leases
  Commercial and
   Industrial           796.2    10.6   5.34     828.0    10.2   4.97
  Construction           81.1     1.0   5.01     100.4     0.9   3.80
  Commercial
   Mortgage             658.9     8.8   5.29     638.9     8.6   5.39
  Residential
   Mortgage           2,282.6    32.1   5.62   2,281.8    32.2   5.65
  Installment           722.7    15.2   8.38     700.4    14.5   8.34
  Home Equity           583.7     7.1   4.83     534.6     6.1   4.63
  Purchased Home
   Equity               155.2     1.7   4.29     178.8     1.9   4.16
  Lease Financing       516.0     5.4   4.17     510.1     5.6   4.38
----------------------------------------------------------------------
Total Loans and
 Leases               5,796.4    81.9   5.63   5,773.0    80.0   5.56
----------------------------------------------------------------------
Other                    78.7     0.8   4.05      78.1     0.9   4.45
----------------------------------------------------------------------
Total Earning Assets  8,982.1   114.4   5.08   9,210.6   111.5   4.86
----------------------------------------------------------------------
Cash and Non-
 Interest-Bearing
 Deposits               316.9                    306.3
Other Assets            369.5                    376.4
                     ---------                ---------
Total Assets         $9,668.5                 $9,893.3
                     =========                =========

Interest-Bearing
 Liabilities
Interest-Bearing
 Deposits
  Demand             $1,471.0     0.9   0.24  $1,390.2     0.6   0.17
  Savings             2,998.4     3.2   0.43   2,911.5     3.1   0.43
  Time                1,078.4     4.9   1.81   1,129.5     4.9   1.74
----------------------------------------------------------------------
Total Interest-
 Bearing Deposits     5,547.8     9.0   0.64   5,431.2     8.6   0.63
----------------------------------------------------------------------
Short-Term
 Borrowings             816.9     2.8   1.36   1,082.5     2.7   1.02
Long-Term Debt          246.8     3.8   6.22     317.3     4.3   5.48
----------------------------------------------------------------------
Total Interest-
 Bearing Liabilities  6,611.5    15.6   0.94   6,831.0    15.6   0.92
----------------------------------------------------------------------
Net Interest Income             $98.8                    $95.9
                               =======                  =======
  Interest Rate
   Spread                               4.14%                    3.94%
  Net Interest
   Margin                               4.39%                    4.17%
Non-Interest-Bearing
 Demand Deposits      1,932.0                  1,940.2
Other Liabilities       393.4                    389.4
Shareholders' Equity    731.6                    732.7
                     ---------                ---------
Total Liabilities
 and Shareholders'
 Equity              $9,668.5                 $9,893.3
                     =========                =========


                        Three Months Ended       Nine Months Ended
                        September 30, 2003       September 30, 2004
(dollars in            Average Income/ Yield/   Average Income/ Yield/
 millions)             Balance Expense   Rate   Balance Expense   Rate
----------------------------------------------------------------------
Earning Assets
Interest-Bearing
 Deposits              $224.7    $1.2   2.08%   $246.4    $3.4   1.83%
Funds Sold              102.4     0.3   0.97      89.4     0.7   1.05
Investment
 Securities
  Available for Sale  2,090.6    16.5   3.16   2,154.9    67.2   4.16
  Held to Maturity      675.1     6.4   3.80     696.1    20.1   3.84
Loans Held for Sale      52.2     0.7   5.45      15.8     0.7   5.53
Loans and Leases
  Commercial and
   Industrial           862.4    10.8   4.95     822.8    31.0   5.04
  Construction           87.8     0.9   4.26      93.9     3.0   4.33
  Commercial
   Mortgage             670.6     9.4   5.56     644.0    25.9   5.38
  Residential
   Mortgage           2,298.8    36.2   6.30   2,293.9    97.6   5.67
  Installment           558.6    12.8   9.09     691.5    44.1   8.51
  Home Equity           448.1     5.6   4.99     536.0    19.0   4.74
  Purchased Home
   Equity               132.6     0.7   2.20     179.5     6.2   4.59
  Lease Financing       487.2     5.6   4.52     509.0    16.4   4.29
----------------------------------------------------------------------
Total Loans and
 Leases               5,546.1    82.0   5.89   5,770.6   243.2   5.63
----------------------------------------------------------------------
Other                    76.1     1.0   5.38      78.1     2.5   4.32
----------------------------------------------------------------------
Total Earning Assets  8,767.2   108.1   4.91   9,051.3   337.8   4.98
----------------------------------------------------------------------
Cash and Non-
 Interest-Bearing
 Deposits               333.2                    316.9
Other Assets            399.2                    378.1
                     ---------                ---------
Total Assets         $9,499.6                 $9,746.3
                     =========                =========

Interest-Bearing
 Liabilities
Interest-Bearing
 Deposits
  Demand             $1,245.8     0.5   0.15  $1,410.6     1.9   0.19
  Savings             2,754.6     3.4   0.49   2,927.5     9.6   0.44
  Time                1,285.7     6.4   1.97   1,132.0    15.3   1.79
----------------------------------------------------------------------
Total Interest-
 Bearing Deposits     5,286.1    10.3   0.77   5,470.1    26.8   0.65
----------------------------------------------------------------------
Short-Term
 Borrowings             827.8     2.3   1.08     920.2     7.7   1.12
Long-Term Debt          325.7     4.4   5.43     294.8    12.5   5.67
----------------------------------------------------------------------
Total Interest-
 Bearing Liabilities  6,439.6    17.0   1.05   6,685.1    47.0   0.94
----------------------------------------------------------------------
Net Interest Income             $91.1                   $290.8
                               =======                  =======
  Interest Rate
   Spread                               3.86%                    4.04%
  Net Interest
   Margin                               4.15%                    4.29%
Non-Interest-Bearing
 Demand Deposits      1,844.0                  1,920.6
Other Liabilities       344.1                    385.5
Shareholders' Equity    871.9                    755.1
                     ---------                ---------
Total Liabilities
 and Shareholders'
 Equity              $9,499.6                 $9,746.3
                     =========                =========


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

Change in Interest Income:
Interest-Bearing Deposits            $(1.9)    $0.8       $-    $(1.1)
Funds Sold                            (0.2)     0.1        -     (0.1)
Investment Securities
  Available for Sale                   1.9      0.9        -      2.8
  Held to Maturity                    (0.5)     0.1        -     (0.4)
Loans Held for Sale                   (0.1)       -        -     (0.1)
Loans and Leases
  Commercial and Industrial           (0.4)     0.7      0.1      0.4
  Construction                        (0.2)     0.3        -      0.1
  Commercial Mortgage                  0.2     (0.1)     0.1      0.2
  Residential Mortgage                   -     (0.1)       -     (0.1)
  Installment                          0.4      0.1      0.2      0.7
  Home Equity                          0.6      0.3      0.1      1.0
  Purchased Home Equity               (0.3)     0.1        -     (0.2)
  Lease Financing                      0.1     (0.3)       -     (0.2)
----------------------------------------------------------------------
Total Loans and Leases                 0.4      1.0      0.5      1.9
----------------------------------------------------------------------
Other                                    -     (0.1)       -     (0.1)
----------------------------------------------------------------------
Total Change in Interest Income       (0.4)     2.8      0.5      2.9
----------------------------------------------------------------------

Change in Interest Expense:
Interest-Bearing Deposits
  Demand                                 -      0.3        -      0.3
  Savings                              0.1        -        -      0.1
  Time                                (0.2)     0.2        -        -
----------------------------------------------------------------------
Total Interest-Bearing Deposits       (0.1)     0.5        -      0.4
----------------------------------------------------------------------
Short-Term Borrowings                 (0.9)     0.9      0.1      0.1
Long-Term Debt                        (1.1)     0.6        -     (0.5)
----------------------------------------------------------------------
Total Change in Interest Expense      (2.1)     2.0      0.1        -
----------------------------------------------------------------------

Change in Net Interest Income         $1.7     $0.8     $0.4     $2.9
======================================================================

(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   Nine Months Ended
                                  September 30,       September 30,
(dollars in thousands)           2004      2003      2004      2003
----------------------------------------------------------------------

Salaries                        $27,796   $28,107   $82,904   $86,404
Incentive Compensation            4,383     4,033    11,459    10,617
Stock Based Compensation          2,671       763     8,800     4,087
Commission Expense                1,780     3,552     5,691     8,964
Retirement and Other Benefits     4,099     4,929    12,670    13,471
Payroll Taxes                     2,415     2,288     8,948     8,445
Medical, Dental, and Life
 Insurance                        2,064     1,641     6,304     5,390
Separation Expense                1,358       418     2,480     2,493
----------------------------------------------------------------------
Total Salaries and Benefits     $46,566   $45,731  $139,256  $139,871
======================================================================


Bank of Hawaii Corporation and Subsidiaries
Loan Portfolio Balances (Unaudited)                            Table 8
----------------------------------------------------------------------
                         Sept. 30,    June 30,    Dec. 31,   Sept. 30,
(dollars in thousands)       2004        2004        2003        2003
----------------------------------------------------------------------
Domestic Loans
  Commercial
    Commercial and
     Industrial          $755,455    $776,815    $816,246    $843,895
    Commercial
     Mortgage             648,991     643,382     639,354     629,225
    Construction          104,709      98,916     101,321      92,343
    Lease Financing       447,005     447,673     435,934     426,839
----------------------------------------------------------------------
  Total Commercial      1,956,160   1,966,786   1,992,855   1,992,302
----------------------------------------------------------------------
  Consumer
    Residential
     Mortgage           2,261,814   2,257,624   2,320,410   2,329,321
    Home Equity           609,981     559,225     467,019     446,032
    Purchased Home
     Equity               143,300     162,730     212,514     109,814
    Other Consumer        729,747     721,386     658,831     582,934
    Lease Financing        33,796      34,676      35,320      35,347
----------------------------------------------------------------------
  Total Consumer        3,778,638   3,735,641   3,694,094   3,503,448
----------------------------------------------------------------------
Total Domestic Loans    5,734,798   5,702,427   5,686,949   5,495,750
----------------------------------------------------------------------
Foreign Loans              80,777      84,887      70,226      74,655
----------------------------------------------------------------------
Total Loans and Leases $5,815,575  $5,787,314  $5,757,175  $5,570,405
======================================================================


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

Air
 Transportation
  United States
   Regional
   Passenger
   Carriers         $44,602     $12,903   $57,505   $59,231   $59,866
  United States
   National
   Passenger
   Carriers          37,771           -    37,771    37,259    37,684
  Passenger
   Carriers
   Based Outside
   United States     28,540           -    28,540    31,549    31,670
  Cargo Carriers     13,771           -    13,771    14,405    14,405
----------------------------------------------------------------------
Total Air
 Transportation    $124,684     $12,903  $137,587  $142,444  $143,625
======================================================================

Guam
  Hotel              $9,348          $-    $9,348   $17,733   $17,768
  Other
   Commercial       156,592      40,868   197,460   184,129   183,115
  Consumer          308,689      12,968   321,657   288,831   277,521
----------------------------------------------------------------------
Total Guam         $474,629     $53,836  $528,465  $490,693  $478,404
======================================================================

Syndicated
 Exposure          $186,214    $604,141  $790,354  $925,864  $918,503
======================================================================

Other Large
 Borrowers (2)      $81,394    $216,632  $298,026  $336,748  $350,897
======================================================================

Exposure includes loans, leveraged leases and operating leases.

(1) For three borrowers, reclassifications occurred between Regional
    and National Carriers. Syndicated Exposure was restated.

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


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

Non-Performing
 Assets
Non-Accrual
 Loans
  Commercial
    Commercial
     and
     Industrial      $775       $680     $6,009     $6,015     $7,856
    Commercial
     Mortgage       5,552      5,649      7,388      9,337     10,977
    Lease
     Financing      1,913      1,948      1,962      2,181      2,388
----------------------------------------------------------------------
  Total
   Commercial       8,240      8,277     15,359     17,533     21,221
----------------------------------------------------------------------
  Consumer
    Residential
     Mortgage       7,278      7,688      7,685      9,354      9,669
    Home Equity       251        306        406        460        497
----------------------------------------------------------------------
  Total
   Consumer         7,529      7,994      8,091      9,814     10,166
----------------------------------------------------------------------
Total Non-
 Accrual Loans     15,769     16,271     23,450     27,347     31,387
----------------------------------------------------------------------
Foreclosed Real
 Estate               208      4,889      4,416      4,377      8,757
----------------------------------------------------------------------
Total Non-
 Performing
 Assets           $15,977    $21,160    $27,866    $31,724    $40,144
======================================================================

Accruing Loans
 Past Due 90
 Days or More
  Commercial
    Commercial
     and
     Industrial       $65        $19       $707       $725       $695
    Commercial
     Mortgage         688        693        702          -          -
    Lease
     Financing          -          -          -        117          -
----------------------------------------------------------------------
  Total
   Commercial         753        712      1,409        842        695
----------------------------------------------------------------------
  Consumer
    Residential
     Mortgage       2,588        698        595      1,430      2,027
    Purchased
     Home
     Equity            97         32        107          -        107
    Other
     Consumer       1,533      1,142      1,180      1,210      1,059
    Lease
     Financing         32         57          -          -          -
----------------------------------------------------------------------
  Total
   Consumer         4,250      1,929      1,882      2,640      3,193
----------------------------------------------------------------------
Total Accruing
 and Past Due      $5,003     $2,641     $3,291     $3,482     $3,888
======================================================================

Total Loans and
 Leases        $5,815,575 $5,787,314 $5,714,996 $5,757,175 $5,570,405
======================================================================

Ratio of Non-
 Accrual Loans
 to Total Loans      0.27%      0.28%      0.41%      0.48%      0.56%
----------------------------------------------------------------------

Ratio of Non-
 Performing
 Assets to
 Total Loans
 and Foreclosed
 Real Estate         0.27%      0.37%      0.49%      0.55%      0.72%
----------------------------------------------------------------------

Ratio of Non-
 Performing
 Assets and
 Accruing Loans
   Past Due 90
    Days or
    More to
    Total Loans      0.36%      0.41%      0.55%      0.61%      0.79%
----------------------------------------------------------------------

Quarter to
 Quarter
 Changes in
 Non-Performing
 Assets
Balance at
 Beginning of
 Quarter          $21,160    $27,866    $31,724    $40,144    $41,952
  Additions         2,094      3,909      3,293      2,340      3,199
  Reductions
    Payments       (1,386)    (4,232)    (4,555)    (3,416)    (1,782)
    Return to
     Accrual       (1,122)    (2,700)    (1,444)      (839)    (1,464)
    Sales of
     Foreclosed
     Assets          (682)      (147)      (310)    (4,418)    (1,025)
    Charge-offs/
     Write-downs      (88)    (3,536)      (842)    (2,087)      (736)
    Transfer to
     Premises      (3,999)         -          -          -          -
----------------------------------------------------------------------
  Total
   Reductions      (7,277)   (10,615)    (7,151)   (10,760)    (5,007)
----------------------------------------------------------------------
Balance at End
 of Quarter       $15,977    $21,160    $27,866    $31,724    $40,144
======================================================================


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

Balance at
 Beginning of
 Period          $124,904   $127,185   $137,974   $129,080   $142,853
Loans Charged-
 Off
  Commercial
    Commercial
     and
     Industrial       227      3,328      1,132      3,942      3,314
    Commercial
     Mortgage           -          -        149        574        549
    Construction        -          -          -          -        529
    Lease
     Financing          -        379         12        607        352
  Consumer
    Residential
     Mortgage         226        319         39        690      1,416
    Home Equity        11          9          -         20         89
    Purchased
     Home
     Equity           173        201        114        464        114
    Other
     Consumer       4,268      4,564      6,784     13,487     13,492
    Lease
     Financing         45         28         50        109        167
----------------------------------------------------------------------
 Total Loans
  Charged-Off       4,950      8,828      8,280     19,893     20,022
----------------------------------------------------------------------
Recoveries on
 Loans
 Previously
 Charged-Off
  Commercial
    Commercial
     and
     Industrial     1,206      1,245        551      3,431      2,942
    Commercial
     Mortgage       1,093        151         31      1,933        105
    Construction       94          -          -        529        955
    Lease
     Financing          2          1          1         18         18
  Consumer
    Residential
     Mortgage         207        304        455        805        912
    Home Equity        14        101         25        154        129
    Purchased
     Home
     Equity            51         57          -        108          -
    Other
     Consumer       1,502      1,703      1,494      4,868      4,163
    Lease
     Financing          9         16          -         80         52
  Foreign             519      6,469        424      7,038        568
----------------------------------------------------------------------
Total
 Recoveries on
 Loans
 Previously
 Charged-Off        4,697     10,047      2,981     18,964      9,844
----------------------------------------------------------------------
Net Loan
 Recoveries
 (Charge-Offs)       (253)     1,219     (5,299)      (929)   (10,178)
Provision for
 Loan and Lease
 Losses                 -     (3,500)         -     (3,500)         -
----------------------------------------------------------------------
Balance at End
 of Period       $124,651   $124,904   $132,675   $124,651   $132,675
======================================================================

Average Loans
 Outstanding   $5,796,350 $5,772,926 $5,546,154 $5,770,642 $5,508,778
======================================================================

Ratio of Net
 Loan Charge-
 Offs to
 Average Loans
 Outstanding
 (annualized)        0.02%    (0.08)%      0.38%      0.02%      0.25%
Ratio of
 Allowance to
 Loans and
 Leases
 Outstanding         2.14%      2.16%      2.38%      2.14%      2.38%


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
 September 30,
 2004
Net Interest
 Income           $51,347    $33,978    $2,893    $10,561     $98,779
Provision for
 Loan and Lease
 Losses             2,121       (847)       (1)    (1,273)          -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and Lease
 Losses            49,226     34,825     2,894     11,834      98,779
Non-Interest
 Income            22,430     15,399    12,762      2,463      53,054
----------------------------------------------------------------------
                   71,656     50,224    15,656     14,297     151,833
Non-Interest
 Expense          (43,605)   (23,092)  (13,559)    (3,934)    (84,190)
----------------------------------------------------------------------
Income Before
 Income Taxes      28,051     27,132     2,097     10,363      67,643
Provision for
 Income Taxes     (10,379)   (10,062)     (776)    (3,359)    (24,576)
----------------------------------------------------------------------
Allocated Net
 Income            17,672     17,070     1,321      7,004      43,067
----------------------------------------------------------------------
Allowance
 Funding Value       (166)      (621)       (6)       793           -
GAAP Provision      2,121       (847)       (1)    (1,273)          -
Economic
 Provision         (3,584)    (2,467)      (86)        (1)     (6,138)
Tax Effect of
 Adjustments          602      1,456        34        179       2,271
----------------------------------------------------------------------
Income Before
 Capital Charge    16,645     14,591     1,262      6,702      39,200
Capital Charge     (5,441)    (4,828)   (1,339)    (8,516)    (20,124)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $11,204     $9,763      $(77)   $(1,814)    $19,076
======================================================================

RAROC (ROE for
 the Company)          33%        33%       10%        20%         23%
======================================================================

Total Assets at
 September 30,
 2004          $3,711,048 $2,295,916  $124,929 $3,462,916  $9,594,809
======================================================================


Three Months
 Ended
 September 30,
 2003 (1)
Net Interest
 Income           $53,167    $34,126    $2,672     $1,140     $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            50,716     30,577     2,677      7,135      91,105
Non-Interest
 Income            25,629     12,656    12,196      3,310      53,791
----------------------------------------------------------------------
                   76,345     43,233    14,873     10,445     144,896
Information
 Technology
 Systems
 Replacement
 Project              (36)         -         -     (4,313)     (4,349)
Non-Interest
 Expense          (47,267)   (22,966)  (12,083)    (2,212)    (84,528)
----------------------------------------------------------------------
Income Before
 Income Taxes      29,042     20,267     2,790      3,920      56,019
Provision for
 Income Taxes     (10,746)    (7,366)   (1,032)      (188)    (19,332)
----------------------------------------------------------------------
Allocated Net
 Income            18,296     12,901     1,758      3,732      36,687
----------------------------------------------------------------------
Allowance
 Funding Value       (152)      (940)       (7)     1,099           -
GAAP Provision      2,451      3,549        (5)    (5,995)          -
Economic
 Provision         (3,014)    (3,147)      (98)       (12)     (6,271)
Tax Effect of
 Adjustments          264        199        41      1,817       2,321
----------------------------------------------------------------------
Income Before
 Capital Charge    17,845     12,562     1,689        641      32,737
Capital Charge     (5,797)    (5,657)   (1,238)   (11,272)    (23,964)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $12,048     $6,905      $451   $(10,631)     $8,773
======================================================================

RAROC (ROE for
 the Company)          34%        24%       15%         2%         17%
======================================================================

Total Assets at
 September 30,
 2003          $3,512,927 $2,257,905  $111,474 $3,488,449  $9,370,755
======================================================================

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


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

Nine Months
 Ended
 September 30,
 2004
Net Interest
 Income          $151,155   $101,648    $8,572    $29,284    $290,659
Provision for
 Loan and Lease
 Losses             7,455      1,630        47    (12,632)     (3,500)
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Loan and Lease
 Losses           143,700    100,018     8,525     41,916     294,159
Non-Interest
 Income            67,833     38,060    40,101     10,750     156,744
----------------------------------------------------------------------
                  211,533    138,078    48,626     52,666     450,903
Non-Interest
 Expense         (131,382)   (69,339)  (39,641)   (11,975)   (252,337)
----------------------------------------------------------------------
Income Before
 Income Taxes      80,151     68,739     8,985     40,691     198,566
Provision for
 Income Taxes     (29,656)   (25,436)   (3,324)   (13,052)    (71,468)
----------------------------------------------------------------------
Allocated Net
 Income            50,495     43,303     5,661     27,639     127,098
----------------------------------------------------------------------
Allowance
 Funding Value       (442)    (2,045)      (20)     2,507           -
GAAP Provision      7,455      1,630        47    (12,632)     (3,500)
Economic
 Provision        (10,489)    (8,065)     (279)        (6)    (18,839)
Tax Effect of
 Adjustments        1,286      3,138        93      3,749       8,266
----------------------------------------------------------------------
Income Before
 Capital Charge    48,305     37,961     5,502     21,257     113,025
Capital Charge    (16,696)   (15,233)   (3,919)   (26,465)    (62,313)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $31,609    $22,728    $1,583    $(5,208)    $50,712
======================================================================

RAROC (ROE for
 the Company)          32%        27%       15%        24%         22%
======================================================================

Total Assets at
 September 30,
 2004          $3,711,048 $2,295,916  $124,929 $3,462,916  $9,594,809
======================================================================


Nine Months
 Ended
 September 30,
 2003 (1)
Net Interest
 Income          $158,498   $103,479    $8,627     $1,986    $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           153,878     96,758     8,632     13,322     272,590
Non-Interest
 Income            71,938     29,756    37,537     10,052     149,283
----------------------------------------------------------------------
                  225,816    126,514    46,169     23,374     421,873
Information
 Technology
 Systems
 Replacement
 Project             (986)       (23)     (333)   (20,529)    (21,871)
Non-Interest
 Expense         (136,145)   (70,274)  (36,457)    (9,724)   (252,600)
----------------------------------------------------------------------
Income (Loss)
 Before Income
 Taxes             88,685     56,217     9,379     (6,879)    147,402
Provision for
 Income Taxes     (32,814)   (20,453)   (3,470)     5,857     (50,880)
----------------------------------------------------------------------
Allocated Net
 Income (Loss)     55,871     35,764     5,909     (1,022)     96,522
----------------------------------------------------------------------
Allowance
 Funding Value       (465)    (3,181)      (23)     3,669           -
GAAP Provision      4,620      6,721        (5)   (11,336)          -
Economic
 Provision         (8,623)    (9,241)     (334)       (21)    (18,219)
Tax Effect of
 Adjustments        1,653      2,109       134      2,845       6,741
----------------------------------------------------------------------
Income (Loss)
 Before Capital
 Charge            53,056     32,172     5,681     (5,865)     85,044
Capital Charge    (17,052)   (16,522)   (3,761)   (39,011)    (76,346)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $36,004    $15,650    $1,920   $(44,876)     $8,698
======================================================================

RAROC (ROE for
 the Company)          34%        21%       17%       (6)%         14%
======================================================================

Total Assets at
 September 30,
 2003          $3,512,927 $2,257,905  $111,474 $3,488,449  $9,370,755
======================================================================

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


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

Quarterly Operating
 Results
Interest Income
  Interest and Fees
   on Loans and
   Leases            $82,079   $80,346    $81,428   $80,351   $82,715
  Income on
   Investment
   Securities -
   Available for
   Sale               24,543    21,745     20,846    19,032    16,483
  Income on
   Investment
   Securities -
   Held to Maturity    6,370     6,711      6,976     7,183     6,407
  Deposits               496     1,646      1,231     1,169     1,179
  Funds Sold             108       177        417        85       248
  Other                  801       865        858     1,007     1,032
----------------------------------------------------------------------
Total Interest
 Income              114,397   111,490    111,756   108,827   108,064
----------------------------------------------------------------------
Interest Expense
  Deposits             8,990     8,560      9,200     9,433    10,284
  Securities Sold
   Under Agreements
   to Repurchase       2,085     2,222      1,926     1,359     1,947
  Funds Purchased        683       506        231       249       271
  Short-Term
   Borrowings             15        13         15        17        26
  Long-Term Debt       3,845     4,340      4,353     4,417     4,431
----------------------------------------------------------------------
Total Interest
 Expense              15,618    15,641     15,725    15,475    16,959
----------------------------------------------------------------------
Net Interest Income   98,779    95,849     96,031    93,352    91,105
Provision for Loan
 and Lease Losses          -    (3,500)         -         -         -
----------------------------------------------------------------------
Net Interest Income
 After Provision
 for Loan and Lease
 Losses               98,779    99,349     96,031    93,352    91,105
----------------------------------------------------------------------
Non-Interest Income
  Trust and Asset
   Management         12,672    12,995     13,864    12,759    12,511
  Mortgage Banking     1,711     2,808      1,977     3,324     5,888
  Service Charges
   on Deposit
   Accounts            9,472     9,540      9,950     9,442     8,901
  Fees, Exchange,
   and Other
   Service Charges    13,741    14,243     13,239    13,725    16,034
  Investment
   Securities Gains
   (Losses)                -       (37)         -       (20)      639
  Insurance            3,560     3,303      3,643     3,597     3,988
  Other               11,898    11,996      6,169     6,610     5,830
----------------------------------------------------------------------
Total Non-Interest
 Income               53,054    54,848     48,842    49,437    53,791
----------------------------------------------------------------------
Non-Interest
 Expense
  Salaries and
   Benefits           46,566    46,689     46,001    46,409    45,731
  Net Occupancy
   Expense             9,812     9,543      9,386     9,933     9,806
  Net Equipment
   Expense             5,847     5,799      5,964     7,395     7,301
  Information
   Technology
   Systems
   Replacement
   Project                 -         -          -         -     4,349
  Other               21,965    23,094     21,671    19,667    21,690
----------------------------------------------------------------------
Total Non-Interest
 Expense              84,190    85,125     83,022    83,404    88,877
----------------------------------------------------------------------
Income Before
 Income Taxes         67,643    69,072     61,851    59,385    56,019
Provision for
 Income Taxes         24,576    24,840     22,052    20,712    19,332
----------------------------------------------------------------------
Net Income           $43,067   $44,232    $39,799   $38,673   $36,687
======================================================================

Basic Earnings Per
 Share                 $0.82     $0.84      $0.73     $0.70     $0.64
Diluted Earnings
 Per Share             $0.78     $0.79      $0.69     $0.66     $0.61

Balance Sheet
 Totals
Total Assets       9,594,809 9,688,769 10,013,442 9,461,647 9,370,755
Net Loans          5,690,924 5,662,410  5,587,811 5,628,095 5,437,730
Total Deposits     7,413,240 7,469,288  7,363,922 7,332,779 7,102,116
Total Shareholders'
 Equity              756,707   699,438    785,768   793,132   823,760

Performance Ratios
Net Income to
 Average Total
 Assets (ROA)           1.77%     1.80%      1.65%     1.66%     1.53%
Net Income to
 Average
 Shareholders'
 Equity (ROE)          23.42%    24.28%     19.98%    18.59%    16.69%
Efficiency Ratio
 (1)                   55.45%    56.49%     57.31%    58.41%    61.34%
Efficiency Ratio
 excluding Systems
 Replacement Costs     55.45%    56.49%     57.31%    58.41%    58.34%

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

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

SOURCE: Bank of Hawaii Corporation