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Bank of Hawaii Corporation Third Quarter 2005 Financial Results

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

HONOLULU--(BUSINESS WIRE)--Oct. 24, 2005--Bank of Hawaii Corporation (NYSE:BOH)

  • Diluted Earnings Per Share $0.85; Net Income $44.8 Million


  • Board of Directors Increases Dividend to $0.37 Per Share


Bank of Hawaii Corporation (NYSE:BOH) today reported diluted earnings per share of $0.85 for the third quarter of 2005, an increase from diluted earnings per share of $0.78 in the third quarter of 2004 and a decrease from $0.87 in the second quarter of 2005. Net income for the third quarter of 2005 was $44.8 million, up $1.8 million from net income of $43.1 million in the third quarter of 2004 and down $1.6 million from net income of $46.4 million in the second quarter of 2005. Net income for the third quarter of 2005 included a provision for credit losses of $3.0 million ($1.9 million after tax or $0.04 per diluted share).

Return on average assets for the third quarter of 2005 was 1.74 percent, compared to 1.77 percent in the third quarter of 2004 and 1.87 percent in the second quarter of 2005. Return on average equity was 24.61 percent for the third quarter of 2005, up from 23.42 percent in the same quarter last year and down from 25.98 percent in the previous quarter.

"We are pleased with Bank of Hawaii Corporation's financial performance for the third quarter of 2005," said Allan R. Landon, Chairman and CEO. "We increased revenue, loans and deposits, and maintained reasonable expense levels. Although we returned to provisioning for credit losses during the quarter, our credit quality and the Hawaii economy remain strong."

For the nine months ended September 30, 2005, net income was $136.8 million, up $9.7 million or 7.6 percent from net income of $127.1 million for the same period last year. Diluted earnings per share were $2.55 for the first nine months of 2005, an increase from $2.26 for the first nine months of 2004. Year-to-date results for 2005 include the previously mentioned $3.0 million provision for credit losses compared to a return to income of $3.5 million in the same period last year resulting from the release of a portion of the allowance for loan and lease losses.

The return on average assets for the nine months ended September 30, 2005 was 1.83 percent, up from 1.74 percent for the same period in 2004. The year-to-date return on average equity was 24.72 percent, up from 22.48 percent for the nine months ended September 30, 2004.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the third quarter of 2005 was $102.0 million, up $3.2 million from $98.8 million in the third quarter of 2004 and up $0.9 million from $101.1 million in the second quarter of 2005. The increase in net interest income was largely due to growth in loans and higher average yields on the investment securities and loan portfolios. Partially offsetting the positive increase in interest income was an increase in interest expense resulting from selective rate increases on interest-bearing deposits. An analysis of the change in net interest income from the previous quarter is included in Table 6.

The net interest margin was 4.30 percent for the third quarter of 2005, a 9 basis point decrease from 4.39 percent in the prior year quarter and a 6 basis point decrease from 4.36 percent in the second quarter of 2005. The decrease in the net interest margin compared to the previous quarter was largely due to a higher level of liquidity. The decrease in the net interest margin compared to the same quarter last year was largely due to the effects of the flattening yield curve.

As previously mentioned, the Company recorded a provision for credit losses of $3.0 million in the third quarter of 2005. Charge-offs during the quarter of $15.3 million included a $10.0 million write-off of a fully reserved aircraft lease and were partially offset by recoveries of $2.3 million. The Company did not recognize a provision for credit losses during the third quarter of 2004 or during the second quarter of 2005.

Non-interest income was $55.5 million for the third quarter of 2005, an increase of $2.5 million or 4.6 percent compared to non-interest income of $53.1 million in the third quarter of 2004. Non-interest income in the third quarters of 2005 and 2004 included gains of $3.4 million and $5.2 million, respectively, on the sale of assets at the end of leveraged leases. Excluding these items, non-interest income increased $4.3 million or 9.0 percent over the same quarter last year. Non-interest income increased $4.8 million or 9.6 percent compared to $50.7 million in the second quarter of 2005.

Non-interest expense was $84.6 million in the third quarter of 2005, up $0.4 million or 0.5 percent from non-interest expense of $84.2 million in the same quarter last year and up $5.6 million or 7.1 percent from $79.0 million in the second quarter of 2005. Included in the third quarter of 2005 were previously announced charges of $3.8 million for legal and other expenses related to the mutual fund business. An analysis of salary and benefit expenses is included in Table 7.

The efficiency ratio for the third quarter of 2005 was 53.72 percent, an improvement from 55.45 percent in the same quarter last year and up from 52.07 percent in the previous quarter.

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

Asset Quality

Overall asset quality remained strong and stable during the third quarter of 2005. Non-performing assets were $8.3 million at the end of the third quarter of 2005, a decrease of $2.7 million, or 24.5 percent, compared to non-performing assets of $10.9 million at the end of the previous quarter and a decrease of $7.7 million, or 48.4 percent, compared to $16.0 million at the end of the same quarter last year. At September 30, 2005 the ratio of non-performing assets to total loans, foreclosed real estate, and other investments was 0.13 percent compared with 0.18 percent at June 30, 2005 and 0.27 percent at September 30, 2004.

Non-accrual loans were $7.2 million at September 30, 2005, a reduction of $2.8 million, or 28.1 percent, from $9.9 million at June 30, 2005 and down $8.6 million, or 54.6 percent, from $15.8 million at September 30, 2004. Non-accrual loans as a percentage of total loans were 0.12 percent at September 30, 2005, down from 0.16 percent at June 30, 2005 and from 0.27 percent at September 30, 2004.

Net charge-offs for the third quarter of 2005 were $13.0 million, or 0.84 percent (annualized) of total average loans, including the previously mentioned write-off of an aircraft lease. Net charge-offs in the previous quarter were $3.7 million, or 0.25 percent (annualized) of total average loans. In the third quarter of 2004, net charge-offs were $0.3 million, or 0.02 percent (annualized) of total average loans. Net charge-offs for the first nine months of 2005 were $20.4 million, or 0.45 percent (annualized) of total average loans compared to $0.9 million or 0.02 percent (annualized) of total average loans in the same period last year. Net charge-offs in the first nine months of 2004 included a $6.0 million recovery of a previously charged-off loan from the divested Asia business.

The allowance for loan and lease losses was $91.7 million at September 30, 2005, down from $101.6 million at June 30, 2005 and down from $124.7 million at September 30, 2004. The $9.9 million decrease in the allowance from the previous quarter was primarily due to net charge-offs. The decrease from the previous year is largely due to net charges-offs, $6.5 million returned to income from releases of the allowance for loan and lease losses during 2004 and $6.8 million reclassified to other liabilities for potential losses related to unfunded commitments to extend credit. The allowance for unfunded commitments was $4.5 million at September 30, 2005, down from $4.6 million at June 30, 2005.

The ratio of the allowance for loan and lease losses to total loans was 1.48 percent at September 30, 2005. The decrease from the ratio of 1.65 percent at June 30, 2005 was largely due to the previously mentioned write-off of an aircraft lease. The ratio of the allowance for loan and lease losses to total loans was 2.14 percent at September 30, 2004. If the allowance for unfunded commitments had been reclassified at September 30, 2004, the ratio would have been 2.03 percent.

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

Other Financial Highlights

Total assets were $10.09 billion at September 30, 2005, up from $10.06 billion at June 30, 2005 and up from $9.59 billion at September 30, 2004. Total loans and leases were $6.20 billion at September 30, 2005, up from $6.15 billion at June 30, 2005 and up from $5.82 billion at September 30, 2004.

Commercial loan outstandings were $2.20 billion at September 30, 2005, essentially flat with June 30, 2005 and up from $2.02 billion at September 30, 2004. Strong commercial loan originations and advances during the third quarter of 2005 were offset by payoff activity. Consumer loan outstandings were $4.00 billion at September 30, 2005, up from $3.95 billion at June 30, 2005 and up from $3.79 billion at September 30, 2004. Growth in residential mortgage and home equity lending continues to be supported by robust construction activity and the strong Hawaii housing market.

Total deposits at September 30, 2005 were $7.76 billion, up from $7.73 billion at June 30, 2005 and up from $7.41 billion at September 30, 2004. Non-interest-bearing demand and savings accounts balances decreased during the quarter as customers shifted funds to higher rate interest-bearing accounts and time deposits.

During the third quarter of 2005, Bank of Hawaii Corporation repurchased 762.7 thousand shares of common stock at a total cost of $38.8 million under its share repurchase program. The average cost was $50.85 per share repurchased. From the beginning of the share repurchase program in July 2001 through September 30, 2005, the Company has repurchased a total of 39.4 million shares and returned $1.3 billion to the shareholders at an average cost of $33.03 per share. From October 1, 2005 through October 21, 2005, the Company repurchased 75.0 thousand shares of common stock at an average cost of $48.66 per share. Remaining buyback authority under the share repurchase program was $46.6 million at October 21, 2005.

The Company's capital and liquidity remain strong. At September 30, 2005 the Tier 1 leverage ratio was 6.98 percent compared to 7.14 percent at June 30, 2005 and 7.69 percent at September 30, 2004.

The Company's Board of Directors declared a quarterly cash dividend of $0.37 per share on the Company's outstanding shares. The dividend will be payable on December 14, 2005 to shareholders of record at the close of business on November 30, 2005.

Financial Outlook

Bank of Hawaii Corporation currently estimates net income for the full year of 2005 will be approximately $179 million to $181 million. The Company performs a quarterly analysis of credit quality to determine the adequacy of the reserve for credit losses. The results of this analysis determine the timing and amount of the provision for credit losses.

Conference Call Information

The Company will review its third quarter 2005 financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The presentation will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation's web site, www.boh.com. The conference call number is 866-700-7477 in the United States or 617-213-8840 for international callers. No confirmation code is required to access the call. A replay will be available for one week beginning Monday, October 24, 2005 by calling 888-286-8010 in the United States or 617-801-6888 for international callers and entering the number 43957291 when prompted. A replay of the presentation will also be available via the Investor Relations link of the Company's web site.

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

Forward-Looking Statements

This news release, including the statements under the caption "Financial Outlook," contains, and other statements made by the Company may contain, forward-looking statements concerning, among other things, the economic and business environment in our service area and elsewhere, growth in the lending portfolio, credit quality, anticipated net income and other financial and business matters in future periods. Our forward-looking statements are based on numerous assumptions, any of which could prove to be inaccurate and actual results may differ materially from those projected for a variety of reasons, including, but not limited to: 1) unanticipated changes in business and economic conditions, the competitive environment, fiscal and monetary policies, taxing authority interpretations, legislation in Hawaii and the other markets we serve, or the timing and interpretation of accounting standards; 2) changes in our credit quality or risk profile that may increase or decrease the required level of reserve for credit losses; 3) changes in market interest rates that may affect our credit markets and ability to maintain our net interest margin; 4) unpredictable costs and other consequences of legal or regulatory matters involving the Company; 5) changes to the amount and timing of our proposed equity repurchases; 6) real or threatened acts of war or terrorist activity affecting business conditions; and 7) adverse weather, public health and other natural conditions impacting the Company and its customers' operations. We do not undertake an obligation to update forward-looking statements to reflect later events or circumstances.

Bank of Hawaii Corporation and Subsidiaries
Highlights (Unaudited)                                         Table 1
----------------------------------------------------------------------
(dollars in thousands      Three Months Ended      Nine Months Ended
 except per share             September 30,          September 30,
 amounts)                    2005       2004        2005       2004
----------------------------------------------------------------------

For the Period:
Interest Income            $129,234   $114,397    $373,497   $337,643
Net Interest Income         101,960     98,779     303,657    290,659
Net Income                   44,829     43,067     136,780    127,098
Basic Earnings Per Share       0.87       0.82        2.62       2.40
Diluted Earnings Per
 Share                         0.85       0.78        2.55       2.26
Dividends Declared Per
 Share                         0.33       0.30        0.99       0.90

Net Income to Average
 Total Assets (ROA)            1.74%      1.77%       1.83%      1.74%
Net Income to Average
 Shareholders' Equity
 (ROE)                        24.61      23.42       24.72      22.48
Net Interest Margin (1)        4.30       4.39        4.36       4.29
Efficiency Ratio(2)           53.72      55.45       52.90      56.40

Average Assets          $10,196,047 $9,668,495 $10,004,968 $9,746,283
Average Loans and Leases  6,170,302  5,796,350   6,087,629  5,770,642
Average Deposits          7,833,638  7,479,776   7,756,789  7,390,682
Average Shareholders'
 Equity                     722,758    731,583     739,721    755,075
Average Equity to
 Average Assets                7.09%      7.57%       7.39%      7.75%

                                                     September 30,
                                                    2005       2004
----------------------------------------------------------------------
At Period End:
Net Loans                                       $6,110,892 $5,690,924
Total Assets                                    10,085,235  9,594,809
Deposits                                         7,756,586  7,413,240
Long-Term Debt                                     242,692    252,619
Shareholders' Equity                               696,311    756,707

Allowance to Loans and
 Leases Outstanding                                   1.48%      2.14%
Dividend Payout Ratio                                37.80      37.57
Leverage Ratio                                        6.98       7.69

Book Value Per Common
 Share                                              $13.58     $14.27

Employees (FTE)                                      2,591      2,655
Branches and Offices                                    85         88

Market Price Per Share of Common
 Stock for the Quarter Ended:
                                        Closing     $49.22     $47.25
                                           High      54.44      48.07
                                            Low      47.44      43.55

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


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)                  Table 2
----------------------------------------------------------------------
(dollars in
 thousands            Three Months Ended           Nine Months Ended
 except per     September     June    September        September
 share             30,         30,       30,              30,
 amounts)         2005        2005      2004 (1)     2005     2004 (1)
----------------------------------------------------------------------
Interest Income
  Interest and
   Fees on Loans
   and Leases    $94,381    $90,119    $82,079    $270,967   $243,853
  Income on
   Investment
   Securities -
   Available
   for Sale       28,482     27,987     24,543      83,788     67,134
  Income on
   Investment
   Securities -
   Held to
   Maturity        5,109      5,527      6,370      16,461     20,057
  Deposits            57         36        496         116      3,373
  Funds Sold         935        165        108       1,175        702
  Other              270        271        801         990      2,524
----------------------------------------------------------------------
Total Interest
 Income          129,234    124,105    114,397     373,497    337,643
----------------------------------------------------------------------
Interest Expense
  Deposits        15,766     13,577      8,990      40,947     26,750
  Securities
   Sold Under
   Agreements to
   Repurchase      6,796      4,562      2,085      14,683      6,233
  Funds Purchased    901      1,151        683       2,785      1,420
  Short-Term
   Borrowings         50         45         15         127         43
  Long-Term Debt   3,761      3,731      3,845      11,298     12,538
----------------------------------------------------------------------
Total Interest
 Expense          27,274     23,066     15,618      69,840     46,984
----------------------------------------------------------------------
Net Interest
 Income          101,960    101,039     98,779     303,657    290,659
Provision for
 Credit Losses     3,000          -          -       3,000     (3,500)
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Credit Losses    98,960    101,039     98,779     300,657    294,159
----------------------------------------------------------------------
Non-Interest Income
  Trust and Asset
   Management     14,052     14,058     12,672      42,732     39,531
  Mortgage
   Banking         2,618      2,594      1,711       7,802      6,496
  Service Charges
   on Deposit
   Accounts       10,046      9,569      9,472      29,794     28,962
  Fees, Exchange,
   and Other
   Service
   Charges        15,394     15,211     13,741      44,441     41,223
  Investment
   Securities
   Gains (Losses)      8        337          -         345        (37)
  Insurance        5,324      4,330      5,423      15,442     15,007
  Other            8,074      4,575     10,035      17,949     25,562
----------------------------------------------------------------------
Total Non-
 Interest Income  55,516     50,674     53,054     158,505    156,744
----------------------------------------------------------------------
Non-Interest Expense
  Salaries and
   Benefits       44,366     43,856     46,566     132,991    139,256
  Net Occupancy    9,896      9,189      9,812      28,630     28,741
  Net Equipment    5,335      5,377      5,847      16,183     17,610
  Professional
   Fees            5,689      2,905      3,428      11,645     10,632
  Other           19,310     17,677     18,537      55,014     56,098
----------------------------------------------------------------------
Total Non-
 Interest Expense 84,596     79,004     84,190     244,463    252,337
----------------------------------------------------------------------
Income Before
 Income Taxes     69,880     72,709     67,643     214,699    198,566
Provision for
 Income Taxes     25,051     26,280     24,576      77,919     71,468
----------------------------------------------------------------------
Net Income       $44,829    $46,429    $43,067    $136,780   $127,098
======================================================================
Basic Earnings
 Per Share         $0.87      $0.90      $0.82       $2.62      $2.40
Diluted Earnings
 Per Share         $0.85      $0.87      $0.78       $2.55      $2.26
Dividends
 Declared Per
 Share             $0.33      $0.33      $0.30       $0.99      $0.90
Basic Weighted
 Average
 Shares       51,385,840 51,873,772 52,390,081  52,221,345 53,053,770
Diluted
 Weighted
 Average
 Shares       52,844,961 53,403,781 55,472,868  53,745,612 56,297,277
======================================================================

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


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition (Unaudited)               Table 3
----------------------------------------------------------------------
                           September      June     December  September
                               30,         30,        31,        30,
(dollars in thousands)        2005        2005       2004       2004
----------------------------------------------------------------------
Assets
Interest-Bearing Deposits   $10,119      $4,825     $4,592    $29,976
Investment Securities -
 Available for Sale
   Held in Portfolio      2,381,462   2,396,204  2,483,719  2,328,327
   Pledged as Collateral    172,500     117,947          -          -
Investment Securities -
 Held to Maturity
   (Fair Value of
    $475,884, $522,993,
    $585,836, and
    $624,587)               485,041     526,767    589,908    630,276
Funds Sold                   10,000      50,000     21,000     25,000
Loans Held for Sale          18,095      17,435     17,642     18,595
Loans and Leases          6,202,546   6,151,418  5,986,930  5,815,575
   Allowance for Loan
    and Lease Losses        (91,654)   (101,587)  (106,796)  (124,651)
----------------------------------------------------------------------
     Net Loans            6,110,892   6,049,831  5,880,134  5,690,924
----------------------------------------------------------------------
Total Earning Assets      9,188,109   9,163,009  8,996,995  8,723,098
----------------------------------------------------------------------
Cash and Non-Interest-
 Bearing Deposits           296,152     293,115    225,359    290,974
Premises and Equipment      135,952     137,907    146,095    149,698
Customers' Acceptance
 Liability                    1,081       1,598      1,406        920
Accrued Interest
 Receivable                  40,898      38,540     36,044     36,074
Foreclosed Real Estate          413         292        191        208
Mortgage Servicing
 Rights                      18,049      18,239     18,769     19,995
Goodwill                     34,959      34,959     36,216     36,216
Other Assets                369,622     372,031    305,116    337,626
----------------------------------------------------------------------
Total Assets            $10,085,235 $10,059,690 $9,766,191 $9,594,809
======================================================================
Liabilities
Deposits
   Non-Interest-Bearing
    Demand               $1,890,904  $1,918,749 $1,977,703 $1,898,602
   Interest-Bearing
    Demand                1,716,306   1,641,873  1,536,323  1,471,836
   Savings                2,880,066   2,967,993  2,960,351  2,991,386
   Time                   1,269,310   1,198,143  1,090,290  1,051,416
----------------------------------------------------------------------
Total Deposits            7,756,586   7,726,758  7,564,667  7,413,240
----------------------------------------------------------------------
Securities Sold Under
 Agreements to Repurchase   756,407     861,233    568,981    682,630
Funds Purchased             172,365      63,565    149,635     69,755
Short-Term Borrowings         8,537       9,894     15,000     11,939
Banker's Acceptances
 Outstanding                  1,081       1,598      1,406        920
Retirement Benefits
 Payable                     67,136      66,638     65,708     62,976
Accrued Interest Payable      9,416       8,617      7,021      6,162
Taxes Payable and
 Deferred Taxes             276,678     283,082    229,928    249,265
Other Liabilities            98,026      83,462     96,373     88,596
Long-Term Debt              242,692     242,674    252,638    252,619
----------------------------------------------------------------------
Total Liabilities         9,388,924   9,347,521  8,951,357  8,838,102
----------------------------------------------------------------------
Shareholders' Equity
 Common Stock ($.01 par
 value); authorized
 500,000,000 shares;
 issued / outstanding:
 September 2005 -
 81,722,233 / 51,282,537,
 June 2005 - 81,721,733 /
 51,853,734, December 2004
 - 81,711,752 / 54,960,857,
 September 2004 -
 81,710,695 / 53,021,591        815         815        813        813
Capital Surplus             463,084     457,280    450,998    413,696
Accumulated Other
 Comprehensive Income
 (Loss)                     (34,697)    (18,471)   (12,917)    (5,698)
Retained Earnings         1,366,058   1,339,119  1,282,425  1,277,615
Deferred Stock Grants        (5,974)     (7,166)    (8,433)    (9,490)
Treasury Stock, at Cost
 (Shares: September 2005 -
 30,439,696, June 2005 -
 29,867,999, December
 2004 - 26,750,895,
 September 2004 -
 28,689,104)             (1,092,975) (1,059,408)  (898,052)  (920,229)
----------------------------------------------------------------------
Total Shareholders'
 Equity                     696,311     712,169    814,834    756,707
----------------------------------------------------------------------
Total Liabilities and
 Shareholders' Equity   $10,085,235 $10,059,690 $9,766,191 $9,594,809
======================================================================


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, 2004    $814,834    $813    $450,998 $(12,917)
Comprehensive Income:
   Net Income                    136,780       -           -        -
   Other Comprehensive Income,
    Net of Tax:
      Change in Unrealized
       Gains and Losses on
       Investment Securities     (21,780)      -           -  (21,780)
   Total Comprehensive Income

Common Stock Issued under
 Stock Plans and
 Related Tax Benefits
 (803,278 shares)                 33,268       2      12,086        -
Treasury Stock Purchased
 (4,478,932 shares)             (214,997)      -           -        -
Cash Dividends Paid              (51,794)      -           -        -
----------------------------------------------------------------------
Balance at September 30, 2005   $696,311    $815    $463,084 $(34,697)
======================================================================

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)
======================================================================

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

Balance at December 31, 2004  $1,282,425 $(8,433)  $(898,052)
Comprehensive Income:
   Net Income                    136,780       -           - $136,780
   Other Comprehensive Income,
    Net of Tax:
      Change in Unrealized
       Gains and Losses on
       Investment Securities           -       -           -  (21,780)
                                                             ---------
   Total Comprehensive Income                                $115,000
                                                             =========

Common Stock Issued under Stock
 Plans and Related Tax Benefits
 (803,278 shares)                 (1,353)  2,459      20,074
Treasury Stock Purchased
 (4,478,932 shares)                    -       -    (214,997)
Cash Dividends Paid              (51,794)      -           -
-------------------------------------------------------------
Balance at September 30, 2005 $1,366,058 $(5,974)$(1,092,975)
=============================================================

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)
=============================================================


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, 2005        June 30, 2005
                         Average Income/ Yield/ Average Income/ Yield/
(dollars in millions)    Balance Expense  Rate  Balance Expense  Rate
----------------------------------------------------------------------
Earning Assets
Interest-Bearing Deposits    $6.4    $0.1  3.55%    $6.0  $   -  2.36%
Funds Sold                  105.7     0.9  3.54     23.1    0.2  2.86
Investment Securities
  Available for Sale      2,574.2    28.5  4.43  2,542.5   28.0  4.41
  Held to Maturity          507.5     5.1  4.03    544.1    5.5  4.06
Loans Held for Sale          17.0     0.3  5.82     15.1    0.2  5.72
Loans and Leases (2)
  Commercial and
   Industrial               984.2    15.8  6.38    945.0   14.3  6.07
  Construction              186.4     3.0  6.35    140.9    2.1  5.91
  Commercial Mortgage       560.2     8.4  5.95    599.3    8.8  5.89
  Residential Mortgage    2,352.3    33.7  5.73  2,343.9   33.1  5.64
  Other Revolving Credit
   and Installment          742.6    15.9  8.52    739.6   15.4  8.37
  Home Equity               758.2    12.2  6.40    719.0   10.8  6.01
  Purchased Home Equity      88.7     0.6  2.71    103.3    0.8  3.06
  Lease Financing           497.7     4.5  3.55    499.2    4.7  3.74
----------------------------------------------------------------------
Total Loans and Leases    6,170.3    94.1  6.07  6,090.2   90.0  5.91
----------------------------------------------------------------------
Other                        79.4     0.3  1.35     66.3    0.3  1.64
----------------------------------------------------------------------
Total Earning Assets (3)  9,460.5   129.3  5.44  9,287.3  124.2  5.35
----------------------------------------------------------------------
Cash and Non-Interest-
 Bearing Deposits           316.1                  305.8
Other Assets                419.4                  376.1
                        ----------              ---------
Total Assets            $10,196.0               $9,969.2
                        ==========              =========

Interest-Bearing Liabilities
Interest-Bearing Deposits
  Demand                 $1,730.7     2.9  0.66 $1,667.3    2.4  0.58
  Savings                 2,890.2     5.3  0.73  2,970.8    4.8  0.65
  Time                    1,241.9     7.6  2.42  1,159.0    6.4  2.20
----------------------------------------------------------------------
Total Interest-Bearing
 Deposits                 5,862.8    15.8  1.07  5,797.1   13.6  0.94
----------------------------------------------------------------------
Short-Term Borrowings       953.2     7.7  3.22    822.9    5.8  2.81
Long-Term Debt              242.7     3.8  6.19    242.7    3.7  6.16
----------------------------------------------------------------------
Total Interest-Bearing
 Liabilities              7,058.7    27.3  1.53  6,862.7   23.1  1.35
----------------------------------------------------------------------
Net Interest Income                $102.0                $101.1
                                  ========               =======
  Interest Rate Spread                     3.91%                 4.00%
  Net Interest Margin                      4.30%                 4.36%
Non-Interest-Bearing
 Demand Deposits          1,970.9                1,950.2
Other Liabilities           443.7                  439.5
Shareholders' Equity        722.7                  716.8
                        ----------              ---------
Total Liabilities and
 Shareholders' Equity   $10,196.0               $9,969.2
                        ==========              =========

                         Three Months Ended        Nine Months Ended
                         September 30, 2004 (1)   September 30, 2005
                        Average Income/ Yield/  Average Income/ Yield/
(dollars in millions)   Balance Expense  Rate   Balance Expense   Rate
----------------------------------------------------------------------
Earning Assets
Interest-Bearing Deposits  $82.6    $0.5  2.39%     $5.8   $0.1  2.69%
Funds Sold                  28.6     0.1  1.51      47.5    1.2  3.30
Investment Securities
  Available for Sale     2,325.5    24.6  4.23   2,536.3   83.9  4.41
  Held to Maturity         659.0     6.3  3.87     541.8   16.5  4.05
Loans Held for Sale         11.3     0.2  5.74      15.1    0.6  5.66
Loans and Leases (2)
  Commercial and
   Industrial              815.1    10.7  5.27     946.6   43.3  6.12
  Construction              81.1     1.0  5.01     150.7    6.7  5.97
  Commercial Mortgage      658.9     8.8  5.29     588.3   25.8  5.85
  Residential Mortgage   2,280.8    32.1  5.62   2,341.0   99.3  5.65
  Other Revolving Credit
   and Installment         705.6    15.1  8.53     739.7   46.4  8.39
  Home Equity              583.7     7.1  4.83     718.9   32.5  6.04
  Purchased Home Equity    155.2     1.7  4.29     102.8    2.4  3.15
  Lease Financing          516.0     5.4  4.17     499.6   13.9  3.72
----------------------------------------------------------------------
Total Loans and Leases   5,796.4    81.9  5.63   6,087.6  270.3  5.93
----------------------------------------------------------------------
Other                       78.7     0.8  4.05      66.6    1.0  1.99
----------------------------------------------------------------------
Total Earning Assets (3) 8,982.1   114.4  5.08   9,300.7  373.6  5.36
----------------------------------------------------------------------
Cash and Non-Interest-
 Bearing Deposits          316.9                   312.5
Other Assets               369.5                   391.8
                        ---------              ----------
Total Assets            $9,668.5               $10,005.0
                        =========              ==========

Interest-Bearing Liabilities
Interest-Bearing Deposits
  Demand                $1,471.0     0.9  0.24  $1,672.5    6.9  0.56
  Savings                2,998.4     3.2  0.43   2,944.1   14.5  0.66
  Time                   1,078.4     4.9  1.81   1,172.3   19.5  2.22
----------------------------------------------------------------------
Total Interest-Bearing
 Deposits                5,547.8     9.0  0.64   5,788.9   40.9  0.95
----------------------------------------------------------------------
Short-Term Borrowings      816.9     2.8  1.36     828.4   17.6  2.84
Long-Term Debt             246.8     3.8  6.22     244.7   11.3  6.16
----------------------------------------------------------------------
Total Interest-Bearing
 Liabilities             6,611.5    15.6  0.94   6,862.0   69.8  1.36
----------------------------------------------------------------------
Net Interest Income                $98.8                 $303.8
                                 ========                =======
  Interest Rate Spread                    4.14%                  4.00%
  Net Interest Margin                     4.39%                  4.36%
Non-Interest-Bearing
 Demand Deposits         1,932.0                 1,967.9
Other Liabilities          393.4                   435.4
Shareholders' Equity       731.6                   739.7
                        ---------              ----------
Total Liabilities and
 Shareholders' Equity   $9,668.5               $10,005.0
                        =========              ==========

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


Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable
 Equivalent Basis (Unaudited)                                  Table 6
----------------------------------------------------------------------
                                Three Months Ended September 30, 2005
                                       Compared to June 30, 2005
(dollars in millions)           Volume (1)  Rate (1)  Time (1)   Total
----------------------------------------------------------------------

Change in Interest Income:
Interest-Bearing Deposits     $       - $    0.1 $        - $     0.1
Funds Sold                          0.7        -          -       0.7
Investment Securities
   Available for Sale               0.4      0.1          -       0.5
   Held to Maturity                (0.4)       -          -      (0.4)
Loans Held for Sale                 0.1        -          -       0.1
Loans and Leases
   Commercial and Industrial        0.6      0.7        0.2       1.5
   Construction                     0.7      0.2          -       0.9
   Commercial Mortgage             (0.6)     0.1        0.1      (0.4)
   Residential Mortgage             0.1      0.5          -       0.6
   Other Revolving Credit and
    Installment                     0.1      0.2        0.2       0.5
   Home Equity                      0.6      0.7        0.1       1.4
   Purchased Home Equity           (0.1)    (0.1)         -      (0.2)
   Lease Financing                    -     (0.3)       0.1      (0.2)
----------------------------------------------------------------------
Total Loans and Leases              1.4      2.0        0.7       4.1
----------------------------------------------------------------------
Total Change in Interest Income     2.2      2.2        0.7       5.1
----------------------------------------------------------------------

Change in Interest Expense:
Interest-Bearing Deposits
   Demand                           0.1      0.4          -       0.5
   Savings                         (0.2)     0.6        0.1       0.5
   Time                             0.5      0.6        0.1       1.2
----------------------------------------------------------------------
Total Interest-Bearing Deposits     0.4      1.6        0.2       2.2
----------------------------------------------------------------------
Short-Term Borrowings               1.1      0.8          -       1.9
Long-Term Debt                        -      0.1          -       0.1
----------------------------------------------------------------------
Total Change in Interest Expense    1.5      2.5        0.2       4.2
----------------------------------------------------------------------

Change in Net Interest Income  $    0.7 $   (0.3) $     0.5 $     0.9
======================================================================

(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 June  September     September
                              30,    30,     30,           30,
(dollars in thousands)       2005   2005(1) 2004(1)    2005   2004(1)
----------------------------------------------------------------------

Salaries                   $27,652 $26,758 $27,993   $80,521  $83,307
Incentive Compensation       4,385   3,725   4,383    12,078   11,459
Stock Based Compensation     1,855   1,828   2,671     5,398    8,800
Commission Expense           1,864   2,281   1,780     6,397    5,691
Retirement and Other
 Benefits                    4,512   4,437   4,099    13,717   12,670
Payroll Taxes                2,091   2,205   2,415     7,749    8,948
Medical, Dental, and Life
 Insurance                   1,805   1,823   2,064     5,859    6,304
Separation Expense             202     799   1,161     1,272    2,077
----------------------------------------------------------------------
Total Salaries and
 Benefits                  $44,366 $43,856 $46,566  $132,991 $139,256
======================================================================

(1) Certain prior information has been reclassified to conform to
    current presentation.


Bank of Hawaii Corporation and Subsidiaries
Loan Portfolio Balances (Unaudited)                            Table 8
----------------------------------------------------------------------
                          September   June      December    September
                             30,       30,         31,         30,
(dollars in thousands)      2005      2005 (1)    2004 (1)    2004 (1)
----------------------------------------------------------------------
Commercial
   Commercial and
    Industrial            $968,146 $1,000,554    $911,843    $792,400
   Commercial Mortgage     574,034    563,581     602,678     648,991
   Construction            190,603    165,772     122,103     104,457
   Lease Financing         468,378    471,600     479,100     479,063
----------------------------------------------------------------------
Total Commercial         2,201,161  2,201,507   2,115,724   2,024,911
----------------------------------------------------------------------
Consumer
   Residential Mortgage  2,370,717  2,345,483   2,324,058   2,290,940
   Home Equity             778,723    739,161     657,164     609,981
   Purchased Home Equity    81,076     93,806     122,728     143,300
   Other Revolving Credit
    and Installment        743,764    742,834     734,721     712,647
   Lease Financing          27,105     28,627      32,535      33,796
----------------------------------------------------------------------
Total Consumer           4,001,385  3,949,911   3,871,206   3,790,664
----------------------------------------------------------------------
Total Loans and Leases  $6,202,546 $6,151,418  $5,986,930  $5,815,575
======================================================================

Air Transportation Credit Exposure(2) (Unaudited)
----------------------------------------------------------------------
                           September 30,           Dec. 31,  Sept. 30,
                               2005                  2004(1)    2004
                   ------------------------------- --------- ---------
(dollars in                       Unused    Total     Total     Total
 thousands)       Outstanding Commitments Exposure  Exposure  Exposure
----------------------------------------------------------------------
United States
 Regional Passenger
 Carriers             $41,206     $1,656  $42,862   $54,981   $57,505
United States
 National Passenger
 Carriers              27,816          -   27,816    37,377    37,771
Passenger Carriers
 Based Outside United
 States                21,573          -   21,573    25,910    28,540
Cargo Carriers         13,240          -   13,240    13,771    13,771
----------------------------------------------------------------------
Total Air
 Transportation      $103,835     $1,656 $105,491  $132,039  $137,587
======================================================================

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


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

Non-Performing Assets
Non-Accrual Loans
  Commercial
    Commercial and
     Industrial                 $471       $430       $683       $775
    Commercial Mortgage        1,555      1,739      2,106      5,552
    Lease Financing                4      1,586      2,973      1,913
----------------------------------------------------------------------
  Total Commercial             2,030      3,755      5,762      8,240
----------------------------------------------------------------------
  Consumer
    Residential Mortgage       5,083      6,034      7,688      7,278
    Home Equity                   41        156        218        251
----------------------------------------------------------------------
  Total Consumer               5,124      6,190      7,906      7,529
----------------------------------------------------------------------
Total Non-Accrual Loans        7,154      9,945     13,668     15,769
----------------------------------------------------------------------
Foreclosed Real Estate           413        292        191        208
Other Investments                683        683          -          -
----------------------------------------------------------------------
Total Non-Performing Assets   $8,250    $10,920    $13,859    $15,977
======================================================================

Accruing Loans Past Due 90 Days or More
  Commercial
    Commercial and Industrial     $-         $9        $52        $65
    Commercial Mortgage            -      2,213          -        688
----------------------------------------------------------------------
  Total Commercial                 -      2,222         52        753
----------------------------------------------------------------------
  Consumer
    Residential Mortgage       1,545      1,310        387      2,588
    Purchased Home Equity         83          -        183         97
    Other Revolving Credit
     and Installment           1,479      1,417      1,433      1,533
    Lease Financing               51          -         30         32
----------------------------------------------------------------------
  Total Consumer               3,158      2,727      2,033      4,250
----------------------------------------------------------------------
Total Accruing Loans Past
 Due 90 Days or More          $3,158     $4,949     $2,085     $5,003
======================================================================

Total Loans and Leases    $6,202,546 $6,151,418 $5,986,930 $5,815,575
======================================================================

Ratio of Non-Accrual Loans
 to Total Loans                 0.12%      0.16%      0.23%      0.27%
----------------------------------------------------------------------

Ratio of Non-Performing
 Assets to Total Loans,
 Foreclosed Real Estate
 and Other Investments          0.13%      0.18%      0.23%      0.27%
----------------------------------------------------------------------

Ratio of Non-Performing
 Assets and Accruing Loans
 Past Due 90 Days or More
 to Total Loans                 0.18%      0.26%      0.27%      0.36%
----------------------------------------------------------------------

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of
 Quarter                     $10,920    $13,365    $15,977    $21,160
  Additions                      919      3,088      5,164      2,094
  Reductions
    Payments                  (1,326)    (5,097)    (6,435)    (1,386)
    Return to Accrual         (2,007)      (392)      (456)    (1,122)
    Sales of Foreclosed
     Assets                        -          -       (206)      (682)
    Charge-offs/Write-downs     (256)       (44)      (185)       (88)
    Transfer to Premises           -          -          -     (3,999)
----------------------------------------------------------------------
  Total Reductions            (3,589)    (5,533)    (7,282)    (7,277)
----------------------------------------------------------------------
Balance at End of Quarter     $8,250    $10,920    $13,859    $15,977
======================================================================


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

Balance at Beginning of
 Period                     $106,163   $124,904   $113,596   $129,080
Loans Charged-Off
  Commercial
    Commercial and Industrial    620        227      1,775      3,942
    Commercial Mortgage            -          -          -        574
    Lease Financing           10,049          -     10,049        607
  Consumer
    Residential Mortgage         130        226        512        690
    Home Equity                    -         11          -         20
    Purchased Home Equity         26        173        723        464
    Other Revolving Credit
     and Installment           4,488      4,268     13,617     13,487
    Lease Financing                6         45         69        109
----------------------------------------------------------------------
Total Loans Charged-Off       15,319      4,950     26,745     19,893
----------------------------------------------------------------------
Recoveries on Loans Previously Charged-Off
  Commercial
    Commercial and Industrial    528      1,206      1,281      3,431
    Commercial Mortgage          146      1,093        240      1,933
    Construction                   -         94          -        529
    Lease Financing                -          2        162         18
  Consumer
    Residential Mortgage         190        207        485        805
    Home Equity                    4         14         34        154
    Purchased Home Equity        126         51        281        108
    Other Revolving Credit
     and Installment           1,322      1,502      3,775      4,868
    Lease Financing                7          9         58         80
  Foreign                          -        519          -      7,038
----------------------------------------------------------------------
Total Recoveries on Loans
 Previously Charged-Off        2,323      4,697      6,316     18,964
----------------------------------------------------------------------
Net Loan Charge-Offs         (12,996)      (253)   (20,429)      (929)
Provision for Credit Losses    3,000          -      3,000     (3,500)
----------------------------------------------------------------------
Balance at End of Period (1) $96,167   $124,651    $96,167   $124,651
======================================================================

Components
Allowance for Loan and
 Lease Losses                $91,654   $124,651    $91,654   $124,651
Reserve for Unfunded
 Commitments (2)               4,513          -      4,513          -
----------------------------------------------------------------------
Total Reserve for Credit
 Losses                      $96,167   $124,651    $96,167   $124,651
======================================================================

Average Loans
 Outstanding              $6,170,302 $5,796,350 $6,087,629 $5,770,642
======================================================================

Ratio of Net Loan Charge-
 Offs to Average Loans
 Outstanding (annualized)       0.84%      0.02%      0.45%      0.02%
Ratio of Allowance to Loans
 and Leases Outstanding (2)     1.48%      2.14%      1.48%      2.14%

(1) Included in this analysis is activity related to the Company's
    reserve for unfunded commitments, which is separately recorded in
    other liabilities in the Consolidated Statements of Condition.
(2) The reclassification of the reserve for unfunded commitments to
    other liabilities occurred in the fourth quarter of 2004 on a
    prospective basis. Thus, September 30, 2004 allowance for loan and
    lease losses and reserve for unfunded commitments were reported
    together. At September 30, 2004, the reserve for unfunded
    commitments was $6.7 million.


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

Three Months
 Ended
 September 30,
 2005
Net Interest
 Income           $56,549    $36,017    $3,223     $6,171    $101,960
Provision for
 Credit Losses      2,946     10,564         -    (10,510)      3,000
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Credit Losses     53,603     25,453     3,223     16,681      98,960
Non-Interest
 Income            25,595     13,385    14,097      2,439      55,516
----------------------------------------------------------------------
                   79,198     38,838    17,320     19,120     154,476
Non-Interest
 Expense          (44,517)   (22,025)  (15,683)    (2,371)    (84,596)
----------------------------------------------------------------------
Income Before
 Income Taxes      34,681     16,813     1,637     16,749      69,880
Provision for
 Income Taxes     (12,832)    (6,327)     (606)    (5,286)    (25,051)
----------------------------------------------------------------------
Allocated Net
 Income            21,849     10,486     1,031     11,463      44,829
----------------------------------------------------------------------
Allowance
 Funding Value       (178)      (586)       (5)       769           -
GAAP Provision      2,946     10,564         -    (10,510)      3,000
Economic
 Provision         (3,364)    (2,410)     (105)        (1)     (5,880)
Tax Effect of
 Adjustments          221     (2,800)       41      3,604       1,066
----------------------------------------------------------------------
Income Before
 Capital Charge    21,474     15,254       962      5,325      43,015
Capital Charge     (5,569)    (4,645)   (1,548)    (8,113)    (19,875)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $15,905    $10,609     $(586)   $(2,788)    $23,140
======================================================================

RAROC (ROE for
 the Company)          42%        36%        7%        16%         25%
======================================================================

Total Assets at
 September 30,
 2005          $3,829,656 $2,538,084  $184,757 $3,532,738 $10,085,235
======================================================================


Three Months
 Ended
 September 30,
 2004 (1)
Net Interest
 Income           $51,329    $33,967    $2,889    $10,594     $98,779
Provision for
 Credit Losses      2,121       (847)       (1)    (1,273)          -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Credit Losses     49,208     34,814     2,890     11,867      98,779
Non-Interest
 Income            22,430     15,350    12,812      2,462      53,054
----------------------------------------------------------------------
                   71,638     50,164    15,702     14,329     151,833
Non-Interest
 Expense          (43,605)   (23,019)  (13,632)    (3,934)    (84,190)
----------------------------------------------------------------------
Income Before
 Income Taxes      28,033     27,145     2,070     10,395      67,643
Provision for
 Income Taxes     (10,372)   (10,069)     (766)    (3,369)    (24,576)
----------------------------------------------------------------------
Allocated Net
 Income            17,661     17,076     1,304      7,026      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    16,634     14,597     1,245      6,724      39,200
Capital Charge     (5,441)    (4,824)   (1,344)    (8,515)    (20,124)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $11,193     $9,773      $(99)   $(1,791)    $19,076
======================================================================

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

Total Assets at
 September 30,
 2004          $3,711,048 $2,295,901  $124,943 $3,462,917  $9,594,809
======================================================================

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


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

Nine Months
 Ended
 September 30,
 2005
Net Interest
 Income          $163,111   $106,105    $9,334    $25,107    $303,657
Provision for
 Credit Losses      9,962     11,216        (1)   (18,177)      3,000
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Credit Losses    153,149     94,889     9,335     43,284     300,657
Non-Interest
 Income            74,917     33,651    42,952      6,985     158,505
----------------------------------------------------------------------
                  228,066    128,540    52,287     50,269     459,162
Non-Interest
 Expense         (130,135)   (65,604)  (42,594)    (6,130)   (244,463)
----------------------------------------------------------------------
Income Before
 Income Taxes      97,931     62,936     9,693     44,139     214,699
Provision for
 Income Taxes     (36,235)   (23,326)   (3,586)   (14,772)    (77,919)
----------------------------------------------------------------------
Allocated Net
 Income            61,696     39,610     6,107     29,367     136,780
----------------------------------------------------------------------
Allowance
 Funding Value       (509)    (1,788)      (17)     2,314           -
GAAP Provision      9,962     11,216        (1)   (18,177)      3,000
Economic
 Provision        (10,304)    (7,300)     (298)        (3)    (17,905)
Tax Effect of
 Adjustments          315       (787)      117      5,871       5,516
----------------------------------------------------------------------
Income Before
 Capital Charge    61,160     40,951     5,908     19,372     127,391
Capital Charge    (16,449)   (13,842)   (4,317)   (26,436)    (61,044)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $44,711    $27,109    $1,591    $(7,064)    $66,347
======================================================================

RAROC (ROE for
 the Company)          41%        33%       15%        16%         25%
======================================================================

Total Assets at
 September 30,
 2005          $3,829,656 $2,538,084  $184,757 $3,532,738 $10,085,235
======================================================================

Nine Months
 Ended
 September 30,
 2004 (1)
Net Interest
 Income          $151,010   $101,569    $8,533    $29,547    $290,659
Provision for
 Credit Losses      7,455      1,630        47    (12,632)     (3,500)
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Credit Losses    143,555     99,939     8,486     42,179     294,159
Non-Interest
 Income            67,833     37,923    40,238     10,750     156,744
----------------------------------------------------------------------
                  211,388    137,862    48,724     52,929     450,903
Non-Interest
 Expense         (131,382)   (69,092)  (39,888)   (11,975)   (252,337)
----------------------------------------------------------------------
Income Before
 Income Taxes      80,006     68,770     8,836     40,954     198,566
Provision for
 Income Taxes     (29,602)   (25,450)   (3,269)   (13,147)    (71,468)
----------------------------------------------------------------------
Allocated Net
 Income            50,404     43,320     5,567     27,807     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    48,214     37,978     5,408     21,425     113,025
Capital Charge    (16,696)   (15,218)   (3,934)   (26,465)    (62,313)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)          $31,518    $22,760    $1,474    $(5,040)    $50,712
======================================================================

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

Total Assets at
 September 30,
 2004          $3,711,048 $2,295,901  $124,943 $3,462,917  $9,594,809
======================================================================

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


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

Quarterly Operating Results
Interest Income
  Interest
   and Fees on
   Loans and
   Leases        $94,381     $90,119    $86,467    $84,100    $82,079
  Income on
   Investment
   Securities -
   Available
   for Sale       28,482      27,987     27,319     26,394     24,543
  Income on
   Investment
   Securities -
   Held to
   Maturity        5,109       5,527      5,825      6,147      6,370
  Deposits            57          36         23        107        496
  Funds Sold         935         165         75        356        108
  Other              270         271        449        267        801
----------------------------------------------------------------------
Total Interest
 Income          129,234     124,105    120,158    117,371    114,397
----------------------------------------------------------------------
Interest Expense
  Deposits        15,766      13,577     11,604      9,993      8,990
  Securities
   Sold Under
   Agreements to
   Repurchase      6,796       4,562      3,325      3,120      2,085
  Funds
   Purchased         901       1,151        733        395        683
  Short-Term
   Borrowings         50          45         32         39         15
  Long-Term Debt   3,761       3,731      3,806      3,893      3,845
----------------------------------------------------------------------
Total Interest
 Expense          27,274      23,066     19,500     17,440     15,618
----------------------------------------------------------------------
Net Interest
 Income          101,960     101,039    100,658     99,931     98,779
Provision for
 Credit Losses     3,000           -          -     (6,500)         -
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Credit Losses    98,960     101,039    100,658    106,431     98,779
----------------------------------------------------------------------
Non-Interest Income
  Trust and Asset
   Management     14,052      14,058     14,622     13,934     12,672
  Mortgage
   Banking         2,618       2,594      2,590      1,516      1,711
  Service
   Charges on
   Deposit
   Accounts       10,046       9,569     10,179     10,155      9,472
  Fees,
   Exchange,
   and Other
   Service
   Charges        15,394      15,211     13,836     13,684     13,741
  Investment
   Securities
   Gains (Losses)      8         337          -       (757)         -
  Insurance        5,324       4,330      5,788      4,234      5,423
  Other            8,074       4,575      5,300      5,584     10,035
----------------------------------------------------------------------
Total Non-Interest
 Income           55,516      50,674     52,315     48,350     53,054
----------------------------------------------------------------------
Non-Interest Expense
  Salaries and
   Benefits       44,366      43,856     44,769     45,043     46,566
  Net Occupancy    9,896       9,189      9,545      9,606      9,812
  Net Equipment    5,335       5,377      5,471      6,316      5,847
  Professional
   Fees            5,689       2,905      3,051      3,580      3,428
  Other           19,310      17,677     18,027     17,558     18,537
----------------------------------------------------------------------
Total Non-Interest
 Expense          84,596      79,004     80,863     82,103     84,190
----------------------------------------------------------------------
Income Before
 Income Taxes     69,880      72,709     72,110     72,678     67,643
Provision for
 Income Taxes     25,051      26,280     26,588     26,437     24,576
----------------------------------------------------------------------
Net Income       $44,829     $46,429    $45,522    $46,241    $43,067
======================================================================

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

Balance Sheet
 Totals
Total Assets $10,085,235 $10,059,690 $9,908,030 $9,766,191 $9,594,809
Net Loans      6,110,892   6,049,831  5,910,784  5,880,134  5,690,924
Total
 Deposits      7,756,586   7,726,758  7,760,662  7,564,667  7,413,240
Total
 Shareholders'
 Equity          696,311     712,169    716,656    814,834    756,707

Performance
 Ratios
Net Income to
 Average Total
 Assets (ROA)       1.74%       1.87%      1.88%      1.89%      1.77%
Net Income to
 Average
 Shareholders
 Equity (ROE)      24.61       25.98      23.66      23.63      23.42
Efficiency
 Ratio (2)         53.72       52.07      52.86      55.37      55.45

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

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

SOURCE: Bank of Hawaii Corporation