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Bank of Hawaii Corporation Third Quarter 2006 Financial Results

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A -- Board of Directors Increases Dividend 11 Percent to $0.41 Per Share

HONOLULU, Oct 23, 2006 (BUSINESS WIRE) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.93 for the third quarter of 2006, up from $0.85 in the third quarter of 2005 and up from $0.73 in the second quarter of 2006. Net income for the third quarter of 2006 was $46.9 million, up $2.1 million from $44.8 million in the third quarter of 2005 and up $9.7 million from $37.2 million in the second quarter of 2006.

The return on average assets for the third quarter of 2006 was 1.81 percent, compared to 1.74 percent in the third quarter of 2005 and 1.47 percent in the second quarter of 2006. The return on average shareholders equity was 27.09 percent for the third quarter of 2006, up from 24.61 percent in the third quarter last year and up from 21.70 percent in the previous quarter.

"Bank of Hawaii Corporation had another solid financial performance during the third quarter of 2006 despite a challenging rate environment," said Allan R. Landon, Chairman and CEO. "Loan growth and asset quality were strong during the third quarter and we were able to stabilize net interest income and overall deposit levels."

For the nine months ended September 30, 2006, net income was $129.4 million, down $7.3 million compared to net income of $136.8 million for the same period last year. Diluted earnings per share were $2.53 for the nine month period in 2006, down from diluted earnings per share of $2.55 for the same period in 2005. Results for 2006 include a charge of $8.8 million, or $0.17 per diluted share, as a result of the May 2006 Tax Increase Prevention and Reconciliation Act ("TIPRA"), which repealed the exclusion from federal income taxation of a portion of the income from foreign sales corporations. Excluding the TIPRA adjustment, results for the nine months ended September 30, 2006 were $138.3 million, an increase of $1.5 million compared with the same period last year. Results for the nine month period in 2006 included a provision for credit losses of $7.6 million compared to a provision for credit losses of $3.0 million during the comparable period in 2005.

The year-to-date return on average assets was 1.70 percent, down from 1.83 percent for the same period in 2005. The year-to-date return on average shareholders equity was 24.99 percent, up from 24.72 percent for the nine months ended September 30, 2005.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the third quarter of 2006 was $100.5 million, down $1.6 million from $102.1 million in the third quarter of 2005 and up $0.5 million from $100.0 million in the second quarter of 2006. An analysis of the change in net interest income from the previous quarter is included in Table 6.

The net interest margin was 4.20 percent for the third quarter of 2006, a 10 basis point decrease from 4.30 percent in the third quarter of 2005 and a 5 basis point decrease from 4.25 percent in the second quarter of 2006. The decrease was primarily due to the effects of the inverted yield curve in the third quarter of 2006 and a continued shift in the funding mix.

Results for the third quarter of 2006 included a provision for credit losses of $2.8 million compared to $3.0 million in the third quarter of 2005 and $2.1 million in the second quarter of 2006.

Noninterest income was $56.9 million for the third quarter of 2006, an increase of $1.4 million or 2.5 percent compared to noninterest income of $55.5 million in the third quarter of 2005 and up $3.7 million or 6.9 percent compared to noninterest income of $53.2 million in the second quarter of 2006.

Noninterest expense was $79.8 million in the third quarter of 2006, down $4.8 million or 5.7 percent from noninterest expense of $84.6 million in the same quarter last year and up $1.1 million or 1.3 percent from $78.7 million in the prior quarter. An analysis of salary and benefit expenses is included in Table 7.

The efficiency ratio for the third quarter of 2006 was 50.75 percent, an improvement from 53.72 percent in the same quarter last year and from 51.45 percent in the previous quarter. For the nine months ended September 30, 2006, the efficiency ratio was 51.47 percent compared to 52.90 percent for the same period in 2005.

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

Asset quality remained strong during the third quarter of 2006. Non-performing assets were $5.4 million at the end of the quarter, down $2.8 million, or 34.0 percent, compared to $8.3 million at the end of the same quarter last year and essentially flat with the end of the previous quarter. The ratio of non-performing assets to total loans, foreclosed real estate, and other investments at September 30, 2006 was 0.08 percent, down from 0.13 percent at September 30, 2005 and unchanged from June 30, 2006.

Non-accrual loans and leases were $5.0 million at September 30, 2006, down $2.2 million or 30.8 percent from $7.2 million at September 30, 2005 and down approximately $0.2 million, or 3.1 percent from $5.1 million at June 30, 2006. Non-accrual loans and leases as a percentage of total loans and leases at September 30, 2006 were 0.08 percent, down from 0.12 percent at September 30, 2005 and unchanged from June 30, 2006.

Net charge-offs for the third quarter of 2006 were $2.8 million or 0.17 percent annualized of total average loans and leases compared to net charge-offs of $13.0 million or 0.84 percent annualized of total average loans and leases in the same quarter last year. Net charge-offs during the third quarter of 2005 included a $10.0 million write-off of a fully reserved aircraft lease. Net charge-offs for the second quarter of 2006 were $2.1 million or 0.13 percent annualized of total average loans and leases. Details of the reserve for credit losses are summarized in Table 10.

The allowance for loan and lease losses was $90.8 million at September 30, 2006, down $0.9 million from $91.7 million at September 30, 2005 and down $0.2 million from $91.0 million at June 30, 2006. The ratio of allowance for loan and lease losses to total loans was 1.40 percent at September 30, 2006, down from 1.48 percent at September 30, 2005 and down from 1.41 percent at June 30, 2006. The reserve for unfunded commitments at September 30, 2006 was $5.4 million, up from $4.5 million at September 30, 2005 and up from $5.1 million at June 30, 2006.

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

Other Financial Highlights

Total assets were $10.37 billion at September 30, 2006, up $286 million from $10.09 billion at September 30, 2005 and up $46 million from $10.33 billion at June 30, 2006. Total loans and leases were $6.49 billion at September 30, 2006, up $287 million from $6.20 billion at September 30, 2005 and up $47 million from $6.44 billion at June 30, 2006. Commercial loans were $2.36 billion at September 30, 2006, up $170 million from $2.19 billion at September 30, 2005 and up $42 million from $2.32 billion at June 30, 2006. Consumer loans were $4.13 billion at September 30, 2006, up $116 million from $4.01 billion at September 30, 2005 and up $6 million from $4.13 billion at June 30, 2006.

Total deposits at September 30, 2006 were $7.69 billion, down $69 million from $7.76 billion at September 30, 2005 and down $79 million from $7.77 billion at June 30, 2006. Despite lower deposit balances, the total number of business and consumer deposit accounts increased compared to June 30, 2006 and September 30, 2005. Average total deposits were $7.73 billion during the third quarter of 2006, down $102 million from the same quarter last year and up $4 million from $7.73 billion during the previous quarter.

During the third quarter of 2006, the Company repurchased 950.0 thousand shares of common stock at a total cost of $46.6 million under its share repurchase program. The average cost was $49.03 per share repurchased. From the beginning of the share repurchase program in July 2001 through September 30, 2006, the Company repurchased a total of 42.1 million shares and returned over $1.4 billion to shareholders at an average cost of $34.22 per share. From October 1, 2006 through October 20, 2006, the Company has repurchased an additional 122.5 thousand shares of common stock at an average cost of $48.36 per share. Remaining buyback authority under the share repurchase program was $102.5 million at October 20, 2006.

At September 30, 2006 the Tier 1 leverage ratio was 6.90 percent compared to 6.98 percent at September 30, 2005 and 7.09 percent at June 30, 2006.

The Company's Board of Directors has declared a quarterly cash dividend of $0.41 per share on the Company's outstanding shares. The dividend will be payable on December 14, 2006 to shareholders of record at the close of business on November 30, 2006.

Financial Outlook

The Company's previous earnings estimate of approximately $178 million in net income for the full year of 2006 remains unchanged. An analysis of credit quality is performed quarterly to determine the adequacy of the reserve for credit losses. This analysis determines the timing and amount of the provision for credit losses.

Forward-Looking Statements

This news release contains, and other statements made by the Company in connection with this earnings release may contain, forward-looking statements concerning, among other things, the economic and business environment in our service area and elsewhere, 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, taxing authority interpretations, legislation in Hawaii and the other markets we serve, or the timing and interpretation of proposed 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, tax 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 hazards or conditions impacting the Company and its customers' operations. For further discussion of these and other risks and uncertainties that could cause actual results to differ materially from such forward-looking statements, please refer to the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2005 filed with the U.S. Securities and Exchange Commission. We do not undertake an obligation to update forward-looking statements to reflect later events or circumstances.

Conference Call Information

The Company will review its third quarter 2006 financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The presentation will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation's web site, www.boh.com. The conference call number is 800-299-7928 in the United States or 617-614-3926 for international callers. No passcode is required to access the call. A replay will be available for one week beginning Monday, October 23, 2006 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the number 97074126 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.

Bank of Hawaii Corporation and Subsidiaries
Highlights (Unaudited)                                         Table 1
----------------------------------------------------------------------

                                       Three Months Ended
                             ---------------------------------------
                             September 30,   June 30,   September 30,
(dollars in thousands, except
 per share amounts)               2006         2006         2005
----------------------------------------------------------------------
For the Period:
Interest Income               $   146,960  $   140,769  $   129,234
Net Interest Income               100,350       99,856      101,960
Net Income                         46,920       37,176       44,829
Basic Earnings Per Share             0.95         0.74         0.87
Diluted Earnings Per Share           0.93         0.73         0.85
Dividends Declared Per Share         0.37         0.37         0.33

Net Income to Average Total
 Assets (ROA)                        1.81 %       1.47 %       1.74 %
Net Income to Average
 Shareholders' Equity (ROE)         27.09        21.70        24.61
Net Interest Margin (1)              4.20         4.25         4.30
Efficiency Ratio (2)                50.75        51.45        53.72

Average Assets                $10,309,314  $10,169,341  $10,196,047
Average Loans and Leases        6,470,862    6,317,623    6,170,302
Average Deposits                7,731,993    7,728,227    7,833,638
Average Shareholders' Equity      687,172      687,083      722,758
Average Shareholders' Equity
 to Average Assets                   6.67 %       6.76 %       7.09 %

Market Price Per Share of
 Common Stock:
                      Closing $     48.16  $     49.60  $     49.22
                         High       50.75        54.51        54.44
                          Low       47.00        48.33        47.44


                                               Nine Months Ended
                                           --------------------------
                                                 September 30,
(dollars in thousands, except per share
 amounts)                                       2006         2005
---------------------------------------------------------------------
For the Period:
Interest Income                             $   423,132  $   373,497
Net Interest Income                             302,408      303,657
Net Income                                      129,446      136,780
Basic Earnings Per Share                           2.58         2.62
Diluted Earnings Per Share                         2.53         2.55
Dividends Declared Per Share                       1.11         0.99

Net Income to Average Total Assets (ROA)           1.70 %       1.83 %
Net Income to Average Shareholders' Equity
 (ROE)                                            24.99        24.72
Net Interest Margin (1)                            4.29         4.36
Efficiency Ratio (2)                              51.47        52.90

Average Assets                              $10,190,904  $10,004,968
Average Loans and Leases                      6,324,454    6,087,629
Average Deposits                              7,734,242    7,756,789
Average Shareholders' Equity                    692,643      739,721
Average Shareholders' Equity to Average
 Assets                                            6.80 %       7.39 %

Market Price Per Share of Common Stock:
                                    Closing $     48.16  $     49.22
                                       High       55.15        54.44
                                        Low       47.00        43.82


                               September 30,  June 30,   September 30,
                                  2006          2006       2005 (3)
---------------------------------------------------------------------
At Period End:
Net Loans and Leases          $ 6,398,262   $ 6,350,590  $ 6,110,892
Total Assets                   10,371,215    10,325,190   10,085,235
Deposits                        7,687,123     7,766,033    7,756,586
Long-Term Debt                    265,268       242,749      242,692
Shareholders' Equity              683,472       666,728      696,311

Ratio of Allowance for Loan
 and Lease Losses to Loans and
 Leases Outstanding                  1.40 %        1.41 %       1.48 %
Dividend Payout Ratio (4)           38.95         50.00        37.93
Leverage Capital Ratio               6.90          7.09         6.98

Book Value Per Common
 Share                        $     13.72   $     13.18  $     13.58

Full-Time Equivalent
 Employees                          2,589         2,563        2,591
Branches and Offices                   86            86           85



(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 noninterest expense divided by
 total revenue (net interest income and noninterest income).
(3) Certain prior period information has been reclassified to conform
 to current presentation.
(4) Dividend payout ratio is defined as dividends declared per share
 divided by basic earnings per share for the quarter.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)                  Table 2
----------------------------------------------------------------------

                                          Three Months Ended
                                September 30,  June 30,  September 30,
(dollars in thousands, except
 per share amounts)                 2006         2006        2005
----------------------------------------------------------------------
Interest Income
   Interest and Fees on Loans
    and Leases                  $    110,065 $   104,388 $     94,381
   Income on Investment
    Securities - Available-for-
    Sale                              31,949      31,226       28,482
   Income on Investment
    Securities - Held-to-
    Maturity                           4,558       4,658        5,109
   Deposits                               50          55           57
   Funds Sold                             66         170          935
   Other                                 272         272          270
----------------------------------------------------------------------
Total Interest Income                146,960     140,769      129,234
----------------------------------------------------------------------
Interest Expense
   Deposits                           28,464      24,656       15,766
   Securities Sold Under
    Agreements to Repurchase          11,959       9,802        6,796
   Funds Purchased                     2,270       2,652          901
   Short-Term Borrowings                  82          73           50
   Long-Term Debt                      3,835       3,730        3,761
----------------------------------------------------------------------
Total Interest Expense                46,610      40,913       27,274
----------------------------------------------------------------------
Net Interest Income                  100,350      99,856      101,960
Provision for Credit Losses            2,785       2,069        3,000
----------------------------------------------------------------------
Net Interest Income After
 Provision for Credit Losses          97,565      97,787       98,960
----------------------------------------------------------------------
Noninterest Income
   Trust and Asset Management         14,406      14,537       14,052
   Mortgage Banking                    2,394       2,569        2,618
   Service Charges on Deposit
    Accounts                          10,723       9,695       10,046
   Fees, Exchange, and Other
    Service Charges                   16,266      15,633       15,394
   Investment Securities Gains,
    Net                                   19           -            8
   Insurance                           6,713       4,691        5,324
   Other                               6,366       6,076        8,074
----------------------------------------------------------------------
Total Noninterest Income              56,887      53,201       55,516
----------------------------------------------------------------------
Noninterest Expense
   Salaries and Benefits              43,133      44,811       44,366
   Net Occupancy                       9,998       9,376        9,896
   Net Equipment                       5,285       4,802        5,335
   Professional Fees                   2,638       2,589        5,689
   Other                              18,751      17,164       19,310
----------------------------------------------------------------------
Total Noninterest Expense             79,805      78,742       84,596
----------------------------------------------------------------------
Income Before Provision for
 Income Taxes                         74,647      72,246       69,880
Provision for Income Taxes            27,727      35,070       25,051
----------------------------------------------------------------------
Net Income                      $     46,920 $    37,176 $     44,829
======================================================================
Basic Earnings Per Share        $       0.95 $      0.74 $       0.87
Diluted Earnings Per Share      $       0.93 $      0.73 $       0.85
Dividends Declared Per Share    $       0.37 $      0.37 $       0.33
Basic Weighted Average Shares     49,586,947  50,181,817   51,385,840
Diluted Weighted Average Shares   50,506,267  51,217,281   52,844,961
======================================================================

                                                Nine Months Ended
                                                  September 30,
(dollars in thousands, except per share
 amounts)                                       2006         2005
----------------------------------------------------------------------
Interest Income
   Interest and Fees on Loans and Leases    $    313,824 $    270,967
   Income on Investment Securities -
    Available-for-Sale                            94,010       83,788
   Income on Investment Securities - Held-
    to-Maturity                                   13,973       16,461
   Deposits                                          148          116
   Funds Sold                                        361        1,175
   Other                                             816          990
----------------------------------------------------------------------
Total Interest Income                            423,132      373,497
----------------------------------------------------------------------
Interest Expense
   Deposits                                       72,753       40,947
   Securities Sold Under Agreements to
    Repurchase                                    29,651       14,683
   Funds Purchased                                 6,815        2,785
   Short-Term Borrowings                             212          127
   Long-Term Debt                                 11,293       11,298
----------------------------------------------------------------------
Total Interest Expense                           120,724       69,840
----------------------------------------------------------------------
Net Interest Income                              302,408      303,657
Provision for Credit Losses                        7,615        3,000
----------------------------------------------------------------------
Net Interest Income After Provision for
 Credit Losses                                   294,793      300,657
----------------------------------------------------------------------
Noninterest Income
   Trust and Asset Management                     43,791       42,732
   Mortgage Banking                                7,950        7,802
   Service Charges on Deposit Accounts            30,550       29,794
   Fees, Exchange, and Other Service Charges      46,666       44,441
   Investment Securities Gains, Net                   19          345
   Insurance                                      16,423       15,442
   Other                                          17,261       17,949
----------------------------------------------------------------------
Total Noninterest Income                         162,660      158,505
----------------------------------------------------------------------
Noninterest Expense
   Salaries and Benefits                         133,730      132,991
   Net Occupancy                                  29,017       28,630
   Net Equipment                                  15,115       16,183
   Professional Fees                               5,665       11,645
   Other                                          55,838       55,014
----------------------------------------------------------------------
Total Noninterest Expense                        239,365      244,463
----------------------------------------------------------------------
Income Before Provision for Income Taxes         218,088      214,699
Provision for Income Taxes                        88,642       77,919
----------------------------------------------------------------------
Net Income                                  $    129,446 $    136,780
======================================================================
Basic Earnings Per Share                    $       2.58 $       2.62
Diluted Earnings Per Share                  $       2.53 $       2.55
Dividends Declared Per Share                $       1.11 $       0.99
Basic Weighted Average Shares                 50,180,280   52,221,345
Diluted Weighted Average Shares               51,226,763   53,745,612
======================================================================

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition (Unaudited)               Table 3
----------------------------------------------------------------------

                                            September 30,  June 30,
(dollars in thousands)                          2006         2006
----------------------------------------------------------------------
Assets
Interest-Bearing Deposits                    $     5,238 $     4,145
Funds Sold                                             -           -
Investment Securities - Available-for-Sale
   Held in Portfolio                           1,973,719   2,177,220
   Pledged as Collateral                         678,914     334,947
Investment Securities - Held-to-Maturity
 (Fair Value of $385,891; $408,203;
 $442,989; and $475,884)                         397,520     426,910
Loans Held for Sale                               15,336      15,506
Loans and Leases                               6,489,057   6,441,625
   Allowance for Loan and Lease Losses           (90,795)    (91,035)
----------------------------------------------------------------------
     Net Loans and Leases                      6,398,262   6,350,590
----------------------------------------------------------------------
Total Earning Assets                           9,468,989   9,309,318
----------------------------------------------------------------------
Cash and Noninterest-Bearing Deposits            283,621     397,061
Premises and Equipment                           127,521     130,435
Customers' Acceptances                               673         646
Accrued Interest Receivable                       49,339      45,343
Foreclosed Real Estate                               409         188
Mortgage Servicing Rights                         18,995      18,750
Goodwill                                          34,959      34,959
Other Assets                                     386,709     388,490
----------------------------------------------------------------------
Total Assets                                 $10,371,215 $10,325,190
======================================================================
Liabilities
Deposits
   Noninterest-Bearing Demand                $ 1,879,644 $ 1,976,051
   Interest-Bearing Demand                     1,608,774   1,602,914
   Savings                                     2,596,940   2,691,029
   Time                                        1,601,765   1,496,039
----------------------------------------------------------------------
Total Deposits                                 7,687,123   7,766,033
----------------------------------------------------------------------
Funds Purchased                                  160,600     353,700
Short-Term Borrowings                             11,290      12,100
Securities Sold Under Agreements to
 Repurchase                                    1,099,260     835,563
Long-Term Debt                                   265,268     242,749
Banker's Acceptances                                 673         646
Retirement Benefits Payable                       72,651      72,192
Accrued Interest Payable                          18,659      13,023
Taxes Payable and Deferred Taxes                 280,611     274,146
Other Liabilities                                 91,608      88,310
----------------------------------------------------------------------
Total Liabilities                              9,687,743   9,658,462
----------------------------------------------------------------------
Shareholders' Equity


   Common Stock ($.01 par value); authorized
    500,000,000 shares; issued /
    outstanding: September 2006 - 56,848,799
    / 49,809,709; June 2006 - 56,855,346 /
    50,570,697; December 2005 - 56,827,483 /
    51,276,286; and September 2005 -
    81,722,233 / 51,282,537                          566         566
Capital Surplus                                  471,908     469,461
Accumulated Other Comprehensive Loss             (49,422)    (76,204)
Retained Earnings                                605,976     581,406
Deferred Stock Grants                                  -           -

Treasury Stock, at Cost (Shares: September
 2006 - 7,039,090; June 2006 - 6,284,649;
 December 2005 - 5,551,197; and September
 2005 - 30,439,696)                             (345,556)   (308,501)
----------------------------------------------------------------------
Total Shareholders' Equity                       683,472     666,728
----------------------------------------------------------------------
Total Liabilities and Shareholders' Equity   $10,371,215 $10,325,190
======================================================================

                                            December 31, September 30,
(dollars in thousands)                          2005          2005
----------------------------------------------------------------------
Assets
Interest-Bearing Deposits                   $     4,893   $    10,119
Funds Sold                                            -        10,000
Investment Securities - Available-for-Sale
   Held in Portfolio                          2,333,417     2,381,462
   Pledged as Collateral                        204,798       172,500
Investment Securities - Held-to-Maturity
 (Fair Value of $385,891; $408,203;
 $442,989; and $475,884)                        454,240       485,041
Loans Held for Sale                              17,915        18,095
Loans and Leases                              6,168,536     6,202,546
   Allowance for Loan and Lease Losses          (91,090)      (91,654)
----------------------------------------------------------------------
     Net Loans and Leases                     6,077,446     6,110,892
----------------------------------------------------------------------
Total Earning Assets                          9,092,709     9,188,109
----------------------------------------------------------------------
Cash and Noninterest-Bearing Deposits           493,825       296,152
Premises and Equipment                          133,913       135,952
Customers' Acceptances                            1,056         1,081
Accrued Interest Receivable                      43,033        40,898
Foreclosed Real Estate                              358           413
Mortgage Servicing Rights                        18,010        18,049
Goodwill                                         34,959        34,959
Other Assets                                    369,175       369,622
----------------------------------------------------------------------
Total Assets                                $10,187,038   $10,085,235
======================================================================
Liabilities
Deposits
   Noninterest-Bearing Demand               $ 2,134,916   $ 1,890,904
   Interest-Bearing Demand                    1,678,454     1,716,306
   Savings                                    2,819,258     2,880,066
   Time                                       1,274,840     1,269,310
----------------------------------------------------------------------
Total Deposits                                7,907,468     7,756,586
----------------------------------------------------------------------
Funds Purchased                                 268,110       172,365
Short-Term Borrowings                             9,447         8,537
Securities Sold Under Agreements to
 Repurchase                                     609,380       756,407
Long-Term Debt                                  242,703       242,692
Banker's Acceptances                              1,056         1,081
Retirement Benefits Payable                      71,116        67,136
Accrued Interest Payable                         10,910         9,416
Taxes Payable and Deferred Taxes                269,094       276,678
Other Liabilities                               104,402        98,026
----------------------------------------------------------------------
Total Liabilities                             9,493,686     9,388,924
----------------------------------------------------------------------
Shareholders' Equity


   Common Stock ($.01 par value);
    authorized 500,000,000 shares; issued /
    outstanding: September 2006 -
    56,848,799 / 49,809,709; June 2006 -
    56,855,346 / 50,570,697; December 2005
    - 56,827,483 / 51,276,286; and
    September 2005 - 81,722,233 /
    51,282,537                                      565           815
Capital Surplus                                 473,338       463,084
Accumulated Other Comprehensive Loss            (47,818)      (34,697)
Retained Earnings                               546,591     1,366,058
Deferred Stock Grants                           (11,080)       (5,974)

Treasury Stock, at Cost (Shares: September
 2006 - 7,039,090; June 2006 - 6,284,649;
 December 2005 - 5,551,197; and September
 2005 - 30,439,696)                            (268,244)   (1,092,975)
----------------------------------------------------------------------
Total Shareholders' Equity                      693,352       696,311
----------------------------------------------------------------------
Total Liabilities and Shareholders' Equity  $10,187,038   $10,085,235
======================================================================

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity (Unaudited)    Table 4
----------------------------------------------------------------------

                                                                Accum.
                                                                 Other
                                                               Compre-
                                            Common   Capital   hensive
(dollars in thousands)               Total   Stock   Surplus      Loss
----------------------------------------------------------------------
Balance at December 31, 2005    $ 693,352 $   565 $ 473,338 $ (47,818)
Comprehensive Income:
 Net Income                       129,446       -         -         -
 Other Comprehensive Income, Net
  of Tax:
  Change in Unrealized Gains and
   Losses on Investment
   Securities - Available-for-
   Sale                            (1,604)      -         -    (1,604)
 Total Comprehensive Income
Common Stock Issued under Share-
 Based Compensation Plans and
 Related Tax Benefits (730,432
 shares)                           30,766       1    (1,430)        -
Common Stock Repurchased
 (2,194,534 shares)              (112,191)      -         -         -
Cash Dividends Paid               (56,297)      -         -         -
----------------------------------------------------------------------
Balance at September 30, 2006   $ 683,472 $   566 $ 471,908 $ (49,422)
======================================================================

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 - Available-for-
   Sale                           (21,780)      -         -   (21,780)
 Total Comprehensive Income
Common Stock Issued under Share-
 Based Compensation Plans and
 Related Tax Benefits (803,278
 shares)                           33,268       2    12,086         -
Common Stock Repurchased
 (4,478,932 shares)              (214,997)      -         -         -
Cash Dividends Paid               (51,794)      -         -         -
----------------------------------------------------------------------
Balance at September 30, 2005   $ 696,311 $   815 $ 463,084 $ (34,697)
======================================================================



                                        Deferred               Compre-
                              Retained     Stock    Treasury   hensive
(dollars in thousands)        Earnings    Grants       Stock    Income
----------------------------------------------------------------------
Balance at December 31,
 2005                      $  546,591 $ (11,080)$  (268,244)
Comprehensive Income:
 Net Income                   129,446         -           - $ 129,446
 Other Comprehensive
  Income, Net of Tax:
  Change in Unrealized
   Gains and Losses on
   Investment Securities -
   Available-for-Sale               -         -           -    (1,604)
                                                            ----------
 Total Comprehensive Income                                 $ 127,842
                                                            ==========
Common Stock Issued under
 Share-Based Compensation
 Plans and Related Tax
 Benefits (730,432 shares)    (13,764)   11,080      34,879
Common Stock Repurchased
 (2,194,534 shares)                 -         -    (112,191)
Cash Dividends Paid           (56,297)        -           -
------------------------------------------------------------
Balance at September 30,
 2006                      $  605,976 $       - $  (345,556)
============================================================

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 -
   Available-for-Sale               -         -           -   (21,780)
                                                            ----------
 Total Comprehensive Income                                 $ 115,000
                                                            ==========
Common Stock Issued under
 Share-Based Compensation
 Plans and Related Tax
 Benefits (803,278 shares)     (1,353)    2,459      20,074
Common Stock Repurchased
 (4,478,932 shares)                 -         -    (214,997)
Cash Dividends Paid           (51,794)        -           -
------------------------------------------------------------
Balance at September 30,
 2005                      $1,366,058 $  (5,974)$(1,092,975)
============================================================

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, 2006      June 30, 2006 (1)
                     Average  Income/ Yield/  Average  Income/ Yield/
(dollars in          Balance  Expense Rate    Balance  Expense Rate
 millions)
----------------------------------------------------------------------
Earning Assets
Interest-Bearing
 Deposits           $     4.9 $  0.1  4.12 % $     5.7 $  0.1  3.82 %
Funds Sold                5.1    0.1  5.16        13.9    0.2  4.89
Investment
 Securities
 Available-for-Sale   2,583.0   32.1  4.97     2,564.2   31.4  4.90
 Held-to-Maturity       413.3    4.5  4.41       429.5    4.6  4.34
Loans Held for Sale       8.1    0.1  6.43         8.9    0.1  6.25
Loans and Leases(2)
 Commercial and
  Industrial          1,024.3   19.3  7.46       967.5   17.6  7.29
 Construction           232.2    4.9  8.30       176.7    3.5  8.08
 Commercial Mortgage    614.0   10.5  6.77       598.8    9.9  6.66
 Residential
  Mortgage            2,454.6   36.8  6.01     2,449.1   36.4  5.94
 Other Revolving
  Credit and
  Installment           705.6   16.4  9.21       718.0   16.3  9.10
 Home Equity            937.2   17.9  7.59       912.8   16.8  7.39
 Lease Financing        503.0    4.1  3.27       494.7    3.7  2.99
----------------------------------------------------------------------
Total Loans and
 Leases               6,470.9  109.9  6.76     6,317.6  104.2  6.61
----------------------------------------------------------------------
Other                    79.4    0.3  1.37        79.4    0.3  1.37
----------------------------------------------------------------------
Total Earning
 Assets(3)            9,564.7  147.1  6.13     9,419.2  140.9  5.99
----------------------------------------------------------------------
Cash and
 Noninterest-Bearing
 Deposits               296.5                    304.3
Other Assets            448.1                    445.8
                    ----------              -----------
Total Assets        $10,309.3                $10,169.3
                    ==========              ===========

Interest-Bearing
 Liabilities
Interest-Bearing
 Deposits
 Demand             $ 1,618.9    4.1  1.01   $ 1,611.7    3.9  0.97
 Savings              2,641.4   10.6  1.59     2,699.0    9.4  1.39
 Time                 1,542.7   13.8  3.53     1,432.6   11.4  3.20
----------------------------------------------------------------------
Total Interest-
 Bearing Deposits     5,803.0   28.5  1.95     5,743.3   24.7  1.72
----------------------------------------------------------------------
Short-Term
 Borrowings             179.1    2.4  5.21       219.0    2.7  4.99
Securities Sold
 Under Agreements to
 Repurchase           1,005.8   11.9  4.69       855.9    9.8  4.57
Long-Term Debt          248.7    3.8  6.16       242.7    3.7  6.15
----------------------------------------------------------------------
Total Interest-
 Bearing Liabilities  7,236.6   46.6  2.55     7,060.9   40.9  2.32
----------------------------------------------------------------------
Net Interest Income           $100.5                   $100.0
                              =======                  =======
 Interest Rate
  Spread                              3.58 %                   3.67 %
 Net Interest Margin                  4.20 %                   4.25
Noninterest-Bearing
 Demand Deposits      1,929.0                  1,984.9
Other Liabilities       456.5                    436.4
Shareholders' Equity    687.2                    687.1
                    ----------             ------------
Total Liabilities
 and Shareholders'
 Equity             $10,309.3                $10,169.3
                    ==========             ============

                       Three Months Ended        Nine Months Ended
                     September 30, 2005 (1)     September 30, 2006
                     Average  Income/  Yield/  Average  Income/ Yield/
(dollars in          Balance  Expense  Rate    Balance  Expense Rate
 millions)
----------------------------------------------------------------------
Earning Assets
Interest-Bearing
 Deposits           $     6.4 $   0.1  3.55 % $     5.3 $  0.1  3.74 %
Funds Sold              105.7     0.9  3.51        10.0    0.4  4.83
Investment
 Securities
 Available-for-Sale   2,574.2    28.6  4.44     2,578.9   94.5  4.89
 Held-to-Maturity       507.5     5.1  4.03       428.7   14.0  4.35
Loans Held for Sale      17.0     0.3  5.82         9.6    0.5  6.21
Loans and Leases(2)
 Commercial and
  Industrial            992.9    15.9  6.37       975.0   53.0  7.27
 Construction           164.5     2.7  6.42       184.2   11.2  8.16
 Commercial
  Mortgage              560.2     8.4  5.95       595.1   29.6  6.65
 Residential
  Mortgage            2,352.3    33.7  5.73     2,442.2  108.7  5.93
 Other Revolving
  Credit and
  Installment           744.0    15.9  8.50       716.3   48.6  9.07
 Home Equity            858.7    13.0  6.02       914.9   50.2  7.33
 Lease Financing        497.7     4.5  3.58       496.8   12.0  3.23
----------------------------------------------------------------------
Total Loans and
 Leases               6,170.3    94.1  6.07     6,324.5  313.3  6.62
-------------------------------------- ------------------------ -----
Other                    79.4     0.3  1.36        79.4    0.8  1.37
----------------------------------------------------------------------
Total Earning
 Assets(3)            9,460.5   129.4  5.45     9,436.4  423.6  5.99
----------------------------------------------------------------------
Cash and
 Noninterest-
 Bearing Deposits       316.1                     310.7
Other Assets            419.4                     443.8
                   -----------               -----------
Total Assets        $10,196.0                 $10,190.9
                   ===========               ===========

Interest-Bearing
 Liabilities
Interest-Bearing
 Deposits
 Demand             $ 1,730.7     2.9  0.66   $ 1,628.3   11.4  0.93
 Savings              2,890.2     5.3  0.73     2,698.5   27.1  1.34
 Time                 1,241.9     7.6  2.42     1,429.1   34.3  3.20
----------------------------------------------------------------------
Total Interest-
 Bearing Deposits     5,862.8    15.8  1.07     5,755.9   72.8  1.69
-------------------------------------- ------------------------ -----
Short-Term
 Borrowings             107.4     1.0  3.52       192.1    7.0  4.89
Securities Sold
 Under Agreements
 to Repurchase          845.8     6.7  3.18       878.8   29.6  4.49
Long-Term Debt          242.7     3.8  6.19       244.7   11.3  6.16
----------------------------------------------------------------------
Total Interest-
 Bearing
 Liabilities          7,058.7    27.3  1.53     7,071.5  120.7  2.28
----------------------------------------------------------------------
Net Interest Income           $ 102.1                   $302.9
                              ========                  =======
 Interest Rate
  Spread                               3.92 %                   3.71 %
 Net Interest
  Margin                               4.30 %                   4.29 %
Noninterest-Bearing
 Demand Deposits      1,970.8                   1,978.3
Other Liabilities       443.7                     448.5
Shareholders'
 Equity                 722.8                     692.6
                   -----------               -----------
Total Liabilities
 and Shareholders'
 Equity             $10,196.0                 $10,190.9
                   ===========               ===========

(1) Certain prior period information has been reclassified to conform
 to current presentation.
(2) Non-performing loans and leases are included in the respective
 average loan and lease balances. Income, if any, on such loans and
 leases is recognized on a cash basis.
(3) Interest income includes a 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,
                                      2006 Compared to June 30, 2006
(dollars in millions)              Volume(1) Rate(1) Time(1)   Total
----------------------------------------------------------------------
Change in Interest Income:
Funds Sold                           $ (0.1)  $    -  $    -   $ (0.1)
Investment Securities
   Available-for-Sale                   0.2      0.4     0.1      0.7
   Held-to-Maturity                    (0.2)     0.1       -     (0.1)
Loans and Leases
   Commercial and Industrial            1.1      0.4     0.2      1.7
   Construction                         1.2      0.2       -      1.4
   Commercial Mortgage                  0.3      0.2     0.1      0.6
   Residential Mortgage                   -      0.4       -      0.4
   Other Revolving Credit and
    Installment                        (0.3)     0.2     0.2      0.1
   Home Equity                          0.4      0.5     0.2      1.1
   Lease Financing                      0.1      0.3       -      0.4
----------------------------------------------------------------------
Total Loans and Leases                  2.8      2.2     0.7      5.7
----------------------------------------------------------------------
Total Change in Interest Income         2.7      2.7     0.8      6.2
----------------------------------------------------------------------

Change in Interest Expense:
Interest-Bearing Deposits
   Demand                                 -      0.2       -      0.2
   Savings                             (0.2)     1.3     0.1      1.2
   Time                                 0.9      1.3     0.2      2.4
----------------------------------------------------------------------
Total Interest-Bearing Deposits         0.7      2.8     0.3      3.8
----------------------------------------------------------------------
Short-Term Borrowings                  (0.4)     0.1       -     (0.3)
Securities Sold Under Agreements to
 Repurchase                             1.7      0.3     0.1      2.1
Long-Term Debt                          0.1        -       -      0.1
----------------------------------------------------------------------
Total Change in Interest Expense        2.1      3.2     0.4      5.7
----------------------------------------------------------------------

Change in Net Interest Income        $  0.6   $ (0.5) $  0.4   $  0.5
======================================================================

(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, June 30, September 30,  September 30,
(dollars in
 thousands)         2006       2006       2005        2006     2005
----------------------------------------------------------------------
Salaries             $27,829  $27,727      $27,652   $82,280  $80,521
Incentive
 Compensation          3,697    3,844        4,385    11,862   12,078
Share-Based
 Compensation          1,211    1,631        1,855     4,323    5,398
Commission
 Expense               1,721    1,833        1,864     5,476    6,397
Retirement and
 Other Benefits        4,454    4,833        4,512    14,522   13,717
Payroll Taxes          2,117    2,297        2,091     7,799    7,749
Medical, Dental,
 and Life
 Insurance             1,620    2,185        1,805     5,966    5,859
Separation
 Expense                 484      461          202     1,502    1,272
----------------------------------------------------------------------
Total Salaries
 and Benefits        $43,133  $44,811      $44,366  $133,730 $132,991
======================================================================

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances (Unaudited)                  Table 8
----------------------------------------------------------------------
               September 30,  June 30,   December 31, September 30,
(dollars in
 thousands)        2006        2006 (1)    2005 (1)       2005 (1)
----------------------------------------------------------------------
Commercial
  Commercial and
   Industrial    $  994,531  $1,008,618  $   918,842       $  975,688
  Commercial
   Mortgage         635,552     619,839      558,346          574,034
  Construction      238,995     212,490      153,682          170,030
  Lease Financing   489,183     475,549      470,155          468,378
----------------------------------------------------------------------
Total Commercial  2,358,261   2,316,496    2,101,025        2,188,130
----------------------------------------------------------------------
Consumer
  Residential
   Mortgage       2,464,240   2,457,867    2,417,523        2,370,391
  Home Equity       942,743     929,386      888,075          871,771
  Other Revolving
   Credit and
   Installment      701,759     714,617      736,364          745,149
  Lease Financing    22,054      23,259       25,549           27,105
----------------------------------------------------------------------
Total Consumer    4,130,796   4,125,129    4,067,511        4,014,416
----------------------------------------------------------------------
Total Loans and
 Leases          $6,489,057  $6,441,625  $ 6,168,536       $6,202,546
======================================================================

Air Transportation Credit Exposure (2) (Unaudited)
----------------------------------------------------------------------
                         September 30,            June 30,  Sept. 30,
                              2006                  2006       2005
               -------------------------------------------------------
                                 Unused     Total     Total      Total
(dollars in     Outstanding Commitments  Exposure  Exposure   Exposure
 thousands)
----------------------------------------------------------------------
Passenger
 Carriers Based
 In the United
 States        $    68,045  $        -  $ 68,045  $ 68,213  $  70,678
Passenger
 Carriers Based
 Outside the
 United States      19,475           -    19,475    19,542     21,573
Cargo Carriers      13,240           -    13,240    13,240     13,240
----------------------------------------------------------------------
Total Air
 Transportation
 Credit
 Exposure      $   100,760  $        -  $100,760  $100,995  $ 105,491
======================================================================

(1) Certain prior period 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 and
 Leases Past Due 90 Days or More (Unaudited)                   Table 9
----------------------------------------------------------------------

                                   September 30, June 30,   March 31,
(dollars in thousands)                  2006       2006       2006
----------------------------------------------------------------------
Non-Performing Assets
Non-Accrual Loans and Leases
 Commercial
  Commercial and Industrial          $      400 $      227 $      236
  Commercial Mortgage                        44         48         52
  Lease Financing                             -          -          -
----------------------------------------------------------------------
 Total Commercial                           444        275        288
----------------------------------------------------------------------
 Consumer
  Residential Mortgage                    4,253      4,628      4,922
  Home Equity                               254        204         38
----------------------------------------------------------------------
 Total Consumer                           4,507      4,832      4,960
----------------------------------------------------------------------
Total Non-Accrual Loans and Leases        4,951      5,107      5,248
----------------------------------------------------------------------
Foreclosed Real Estate                      409        188        358
Other Investments                            82         82        300
----------------------------------------------------------------------
Total Non-Performing Assets          $    5,442 $    5,377 $    5,906
======================================================================

Accruing Loans and Leases Past Due
 90 Days or More
Residential Mortgage                 $      882 $    1,157 $      464
Home Equity                                  62         86         85
Other Revolving Credit and
 Installment                              2,044      1,561      1,390
Lease Financing                               -          -         18
----------------------------------------------------------------------
Total Accruing Loans and Leases
 Past Due 90 Days or More            $    2,988 $    2,804 $    1,957
======================================================================

Total Loans and Leases               $6,489,057 $6,441,625 $6,246,125
======================================================================

Ratio of Non-Accrual Loans and
 Leases to Total Loans and Leases          0.08%      0.08%      0.08%
----------------------------------------------------------------------

Ratio of Non-Performing Assets to
 Total Loans and Leases, Foreclosed
 Real Estate and Other Investments         0.08%      0.08%      0.09%
----------------------------------------------------------------------

Ratio of Non-Performing Assets and
 Accruing Loans and Leases Past Due
 90 Days or More to Total Loans and
 Leases                                    0.13%      0.13%      0.13%
----------------------------------------------------------------------

Quarter to Quarter Changes in Non-
 Performing Assets
Balance at Beginning of Quarter      $    5,377 $    5,906 $    6,478
 Additions                                1,507      1,509        907
 Reductions
  Payments                                 (848)    (1,347)      (445)
  Return to Accrual                        (382)      (260)      (985)
  Sales of Foreclosed Assets                (20)       (99)         -
  Charge-offs/Write-downs                  (192)      (332)       (49)
----------------------------------------------------------------------
 Total Reductions                        (1,442)    (2,038)    (1,479)
----------------------------------------------------------------------
Balance at End of Quarter            $    5,442 $    5,377 $    5,906
======================================================================

                                            December 31, September 30,
(dollars in thousands)                          2005 (1)     2005 (1)
----------------------------------------------------------------------
Non-Performing Assets
Non-Accrual Loans and Leases
  Commercial
   Commercial and Industrial                  $      212   $      471
   Commercial Mortgage                               130        1,617
   Lease Financing                                     -            4
----------------------------------------------------------------------
  Total Commercial                                   342        2,092
----------------------------------------------------------------------
  Consumer
   Residential Mortgage                            5,439        5,021
   Home Equity                                        39           41
----------------------------------------------------------------------
  Total Consumer                                   5,478        5,062
----------------------------------------------------------------------
Total Non-Accrual Loans and Leases                 5,820        7,154
----------------------------------------------------------------------
Foreclosed Real Estate                               358          413
Other Investments                                    300          683
----------------------------------------------------------------------
Total Non-Performing Assets                   $    6,478   $    8,250
======================================================================

Accruing Loans and Leases Past Due 90 Days
 or More
Residential Mortgage                          $    1,132   $    1,545
Home Equity                                          185           83
Other Revolving Credit and Installment             1,504        1,479
Lease Financing                                       29           51
----------------------------------------------------------------------
Total Accruing Loans and Leases Past Due 90
 Days or More                                 $    2,850   $    3,158
======================================================================

Total Loans and Leases                        $6,168,536   $6,202,546
======================================================================

Ratio of Non-Accrual Loans and Leases to
 Total Loans and Leases                             0.09%        0.12%
----------------------------------------------------------------------

Ratio of Non-Performing Assets to Total
 Loans and Leases, Foreclosed Real Estate
 and Other Investments                              0.11%        0.13%
----------------------------------------------------------------------

Ratio of Non-Performing Assets and Accruing
 Loans and Leases Past Due 90 Days or More
 to Total Loans and Leases                          0.15%        0.18%
----------------------------------------------------------------------

Quarter to Quarter Changes in Non-
 Performing Assets
Balance at Beginning of Quarter               $    8,250   $   10,920
  Additions                                        1,191          919
  Reductions
   Payments                                       (2,345)      (1,326)
   Return to Accrual                                (231)      (2,007)
   Sales of Foreclosed Assets                       (122)           -
   Charge-offs/Write-downs                          (265)        (256)
----------------------------------------------------------------------
  Total Reductions                                (2,963)      (3,589)
----------------------------------------------------------------------
Balance at End of Quarter                     $    6,478   $    8,250
======================================================================

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

Bank of Hawaii Corporation and Subsidiaries
Consolidated Reserve for Credit Losses (Unaudited)            Table 10
----------------------------------------------------------------------

                                         Three Months Ended
                               September 30,   June 30,  September 30,
(dollars in thousands)              2006         2006        2005
----------------------------------------------------------------------
Balance at Beginning of Period $      96,167  $   96,167 $    106,163
Loans and Leases Charged-Off
 Commercial
  Commercial and Industrial             (593)       (677)        (620)
  Lease Financing                          -           -      (10,049)
 Consumer
  Residential Mortgage                     -         (29)        (130)
  Home Equity                           (211)        (86)         (26)
  Other Revolving Credit and
   Installment                        (3,982)     (4,467)      (4,488)
  Lease Financing                        (18)          -           (6)
----------------------------------------------------------------------
Total Loans and Leases
 Charged-Off                          (4,804)     (5,259)     (15,319)
----------------------------------------------------------------------
Recoveries on Loans and Leases
 Previously Charged-Off
 Commercial
  Commercial and Industrial              325       1,445          528
  Commercial Mortgage                     84         335          146
  Lease Financing                          1           -            -
 Consumer
  Residential Mortgage                   223         119          190
  Home Equity                            120         127          130
  Other Revolving Credit and
   Installment                         1,250       1,158        1,322
  Lease Financing                         16           6            7
----------------------------------------------------------------------
Total Recoveries on Loans and
 Leases Previously Charged-Off         2,019       3,190        2,323
----------------------------------------------------------------------
Net Loan and Lease Charge-Offs        (2,785)     (2,069)     (12,996)
Provision for Credit Losses            2,785       2,069        3,000
----------------------------------------------------------------------
Balance at End of Period (1)   $      96,167  $   96,167 $     96,167
======================================================================

Components
 Allowance for Loan and Lease
  Losses                       $      90,795  $   91,035 $     91,654
 Reserve for Unfunded
  Commitments                          5,372       5,132        4,513
----------------------------------------------------------------------
Total Reserve for Credit
 Losses                        $      96,167  $   96,167 $     96,167
======================================================================

Average Loans and Leases
 Outstanding                   $   6,470,862  $6,317,623 $  6,170,302
======================================================================

Ratio of Net Loan and Lease
 Charge-Offs to Average Loans
 and Leases Outstanding
 (annualized)                           0.17%       0.13%        0.84%
Ratio of Allowance for Loans
 and Lease Losses to Loans and
 Leases Outstanding                     1.40%       1.41%        1.48%

                                                  Nine Months Ended
                                                    September 30,
(dollars in thousands)                             2006       2005
----------------------------------------------------------------------
Balance at Beginning of Period                  $   96,167 $  113,596
Loans and Leases Charged-Off
 Commercial
  Commercial and Industrial                         (1,653)    (1,775)
  Lease Financing                                        -    (10,049)
 Consumer
  Residential Mortgage                                 (39)      (512)
  Home Equity                                         (438)      (723)
  Other Revolving Credit and Installment           (12,703)   (13,617)
  Lease Financing                                      (30)       (69)
----------------------------------------------------------------------
Total Loans and Leases Charged-Off                 (14,863)   (26,745)
----------------------------------------------------------------------
Recoveries on Loans and Leases Previously
 Charged-Off
 Commercial
  Commercial and Industrial                          2,064      1,281
  Commercial Mortgage                                  509        240
  Lease Financing                                        1        162
 Consumer
  Residential Mortgage                                 464        485
  Home Equity                                          308        315
  Other Revolving Credit and Installment             3,870      3,775
  Lease Financing                                       32         58
----------------------------------------------------------------------
Total Recoveries on Loans and Leases Previously
 Charged-Off                                         7,248      6,316
----------------------------------------------------------------------
Net Loan and Lease Charge-Offs                      (7,615)   (20,429)
Provision for Credit Losses                          7,615      3,000
----------------------------------------------------------------------
Balance at End of Period (1)                    $   96,167 $   96,167
======================================================================

Components
 Allowance for Loan and Lease Losses            $   90,795 $   91,654
 Reserve for Unfunded Commitments                    5,372      4,513
----------------------------------------------------------------------
Total Reserve for Credit Losses                 $   96,167 $   96,167
======================================================================

Average Loans and Leases Outstanding            $6,324,454 $6,087,629
======================================================================

Ratio of Net Loan and Lease Charge-Offs to
 Average Loans and Leases Outstanding
 (annualized)                                         0.16%      0.45%
Ratio of Allowance for Loans and Lease Losses to
 Loans and Leases Outstanding                         1.40%      1.48%

(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.

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,
 2006
Net Interest
 Income        $   59,397 $   33,996  $  4,293 $    2,664 $   100,350
Provision for
 Credit Losses      2,609        480         -       (304)      2,785
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Credit Losses     56,788     33,516     4,293      2,968      97,565
Noninterest
 Income            25,243     11,929    17,344      2,371      56,887
Noninterest
 Expense          (43,030)   (19,739)  (15,432)    (1,604)    (79,805)
----------------------------------------------------------------------
Income Before
 Provision for
 Income Taxes      39,001     25,706     6,205      3,735      74,647
Provision for
 Income Taxes     (14,430)    (9,682)   (2,296)    (1,319)    (27,727)
----------------------------------------------------------------------
Allocated Net
 Income            24,571     16,024     3,909      2,416      46,920
----------------------------------------------------------------------
Allowance
 Funding Value       (202)      (660)       (9)       871           -
Provision for
 Credit Losses      2,609        480         -       (304)      2,785
Economic
 Provision         (3,105)    (2,158)      (98)         -      (5,361)
Tax Effect of
 Adjustments          258        865        40       (210)        953
----------------------------------------------------------------------
Income Before
 Capital Charge    24,131     14,551     3,842      2,773      45,297
Capital Charge     (5,425)    (3,914)   (1,511)    (8,048)    (18,898)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)       $   18,706 $   10,637  $  2,331 $   (5,275)$    26,399
======================================================================

RAROC (ROE for
 the Company)          49%        41%       28%         7%         27%
======================================================================

Total Assets at
 September 30,
 2006          $3,931,334 $2,692,163  $219,715 $3,528,003 $10,371,215
======================================================================


Three Months
 Ended
 September 30,
 2005 (1)
Net Interest
 Income        $   56,537 $   34,602  $  4,651 $    6,170 $   101,960
Provision for
 Credit Losses      2,946     10,564         -    (10,510)      3,000
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Credit Losses     53,591     24,038     4,651     16,680      98,960
Noninterest
 Income            24,136     12,329    16,611      2,440      55,516
Noninterest
 Expense          (43,068)   (20,155)  (19,002)    (2,371)    (84,596)
----------------------------------------------------------------------
Income Before
 Provision for
 Income Taxes      34,659     16,212     2,260     16,749      69,880
Provision for
 Income Taxes     (12,954)    (5,974)     (836)    (5,287)    (25,051)
----------------------------------------------------------------------
Allocated Net
 Income            21,705     10,238     1,424     11,462      44,829
----------------------------------------------------------------------
Allowance
 Funding Value       (178)      (586)       (5)       769           -
Provision for
 Credit Losses      2,946     10,564         -    (10,510)      3,000
Economic
 Provision         (3,364)    (2,409)     (106)        (1)     (5,880)
Tax Effect of
 Adjustments          221     (2,800)       41      3,604       1,066
----------------------------------------------------------------------
Income Before
 Capital Charge    21,330     15,007     1,354      5,324      43,015
Capital Charge     (5,481)    (4,529)   (1,751)    (8,114)    (19,875)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)       $   15,849 $   10,478  $   (397)$   (2,790)$    23,140
======================================================================

RAROC (ROE for
 the Company)          42%        36%        8%        16%         25%
======================================================================

Total Assets at
 September 30,
 2005          $3,830,473 $2,512,802  $209,222 $3,532,738 $10,085,235
======================================================================
(1) Certain prior period information has been reclassified to conform
 to current 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,
 2006
Net Interest
 Income        $  175,788 $  100,725  $ 13,175 $   12,720 $   302,408
Provision for
 Credit Losses      6,965      1,218       999     (1,567)      7,615
----------------------------------------------------------------------
Net Interest
 Income After
 Provision for
 Credit Losses    168,823     99,507    12,176     14,287     294,793
Noninterest
 Income            74,149     28,242    52,651      7,618     162,660
Noninterest
 Expense         (126,851)   (58,892)  (48,886)    (4,736)   (239,365)
----------------------------------------------------------------------
Income Before
 Provision for
 Income Taxes     116,121     68,857    15,941     17,169     218,088
Provision for
 Income Taxes     (42,965)   (34,263)   (5,889)    (5,525)    (88,642)
----------------------------------------------------------------------
Allocated Net
 Income            73,156     34,594    10,052     11,644     129,446
----------------------------------------------------------------------
Allowance
 Funding Value       (589)    (1,809)      (25)     2,423           -
Provision for
 Credit Losses      6,965      1,218       999     (1,567)      7,615
Economic
 Provision         (9,341)    (6,628)     (286)        (1)    (16,256)
Tax Effect of
 Adjustments        1,097      2,671      (254)      (316)      3,198
----------------------------------------------------------------------
Income Before
 Capital Charge    71,288     30,046    10,486     12,183     124,003
Capital Charge    (16,257)   (12,282)   (4,727)   (23,893)    (57,159)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)       $   55,031 $   17,764  $  5,759 $  (11,710)$    66,844
======================================================================

RAROC (ROE for
 the Company)          48%        27%       24%        12%         25%
======================================================================

Total Assets at
 September 30,
 2006          $3,931,334 $2,692,163  $219,715 $3,528,003 $10,371,215
======================================================================


Nine Months
 Ended
 September 30,
 2005 (1)
Net Interest
 Income        $  163,084 $  102,305  $ 13,161 $   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    153,122     91,089    13,162     43,284     300,657
Noninterest
 Income            70,742     29,285    51,493      6,985     158,505
Noninterest
 Expense         (126,816)   (58,457)  (53,059)    (6,131)   (244,463)
----------------------------------------------------------------------
Income Before
 Provision for
 Income Taxes      97,048     61,917    11,596     44,138     214,699
Provision for
 Income Taxes     (35,908)   (22,949)   (4,290)   (14,772)    (77,919)
----------------------------------------------------------------------
Allocated Net
 Income            61,140     38,968     7,306     29,366     136,780
----------------------------------------------------------------------
Allowance
 Funding Value       (509)    (1,788)      (17)     2,314           -
Provision for
 Credit Losses      9,962     11,216        (1)   (18,177)      3,000
Economic
 Provision        (10,304)    (7,295)     (304)        (2)    (17,905)
Tax Effect of
 Adjustments          315       (789)      119      5,871       5,516
----------------------------------------------------------------------
Income Before
 Capital Charge    60,604     40,312     7,103     19,372     127,391
Capital Charge    (16,206)   (13,443)   (4,959)   (26,436)    (61,044)
----------------------------------------------------------------------
Net Income
 (Loss) After
 Capital Charge
 (NIACC)       $   44,398 $   26,869  $  2,144 $   (7,064)$    66,347
======================================================================

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

Total Assets at
 September 30,
 2005          $3,830,473 $2,512,802  $209,222 $3,532,738 $10,085,235
======================================================================

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

Bank of Hawaii Corporation and Subsidiaries
Quarterly Summary of Selected Consolidated Financial Data
 (Unaudited)                                                 Table 12
----------------------------------------------------------------------

                                         Three Months Ended


(dollars in thousands, except September 30,  June 30,     March 31,
 per share amounts)                2006        2006         2006
----------------------------------------------------------------------

Interest Income
   Interest and Fees on Loans
    and Leases                $   110,065  $   104,388  $    99,371
   Income on Investment
    Securities - Available-
    for-Sale                       31,949       31,226       30,835
   Income on Investment
    Securities - Held-to-
    Maturity                        4,558        4,658        4,757
   Deposits                            50           55           43
   Funds Sold                          66          170          125
   Other                              272          272          272
----------------------------------------------------------------------
Total Interest Income             146,960      140,769      135,403
----------------------------------------------------------------------
Interest Expense
   Deposits                        28,464       24,656       19,633
   Securities Sold Under
    Agreements to Repurchase       11,959        9,802        7,890
   Funds Purchased                  2,270        2,652        1,893
   Short-Term Borrowings               82           73           57
   Long-Term Debt                   3,835        3,730        3,728
----------------------------------------------------------------------
Total Interest Expense             46,610       40,913       33,201
----------------------------------------------------------------------
Net Interest Income               100,350       99,856      102,202
Provision for Credit Losses         2,785        2,069        2,761
----------------------------------------------------------------------
Net Interest Income After
 Provision for Credit Losses       97,565       97,787       99,441
----------------------------------------------------------------------
Noninterest Income
   Trust and Asset Management      14,406       14,537       14,848
   Mortgage Banking                 2,394        2,569        2,987
   Service Charges on Deposit
    Accounts                       10,723        9,695       10,132
   Fees, Exchange, and Other
    Service Charges                16,266       15,633       14,767
   Investment Securities Gains
    (Losses), Net                      19            -            -
   Insurance                        6,713        4,691        5,019
   Other                            6,366        6,076        4,819
----------------------------------------------------------------------
Total Noninterest Income           56,887       53,201       52,572
----------------------------------------------------------------------
Noninterest Expense
   Salaries and Benefits           43,133       44,811       45,786
   Net Occupancy                    9,998        9,376        9,643
   Net Equipment                    5,285        4,802        5,028
   Professional Fees                2,638        2,589          438
   Other                           18,751       17,164       19,923
----------------------------------------------------------------------
Total Noninterest Expense          79,805       78,742       80,818
----------------------------------------------------------------------
Income Before Provision for
 Income Taxes                      74,647       72,246       71,195
Provision for Income Taxes         27,727       35,070       25,845
----------------------------------------------------------------------
Net Income                    $    46,920  $    37,176  $    45,350
======================================================================

Basic Earnings Per Share      $      0.95  $      0.74  $      0.89
Diluted Earnings Per Share    $      0.93  $      0.73  $      0.87

Balance Sheet Totals
Total Assets                  $10,371,215  $10,325,190  $10,528,049
Net Loans and Leases            6,398,262    6,350,590    6,155,061
Total Deposits                  7,687,123    7,766,033    8,147,101
Total Shareholders' Equity        683,472      666,728      681,078

Performance Ratios
Net Income to Average Total
 Assets (ROA)                        1.81 %       1.47 %       1.82 %
Net Income to Average
 Shareholders' Equity (ROE)         27.09        21.70        26.13
Net Interest Margin (2)              4.20         4.25         4.41
Efficiency Ratio (3)                50.75        51.45        52.22

                                               Three Months Ended


(dollars in thousands, except per share     December 31, September 30,
 amounts)                                      2005 (1)       2005
----------------------------------------------------------------------

Interest Income
   Interest and Fees on Loans and Leases    $    97,697  $    94,381
   Income on Investment Securities -
    Available-for-Sale                           29,820       28,482
   Income on Investment Securities - Held-
    to-Maturity                                   4,899        5,109
   Deposits                                         103           57
   Funds Sold                                       154          935
   Other                                            272          270
---------------------------------------------------------------------
Total Interest Income                           132,945      129,234
---------------------------------------------------------------------
Interest Expense
   Deposits                                      17,479       15,766
   Securities Sold Under Agreements to
    Repurchase                                    6,504        6,796
   Funds Purchased                                1,730          901
   Short-Term Borrowings                             61           50
   Long-Term Debt                                 3,715        3,761
---------------------------------------------------------------------
Total Interest Expense                           29,489       27,274
---------------------------------------------------------------------
Net Interest Income                             103,456      101,960
Provision for Credit Losses                       1,588        3,000
---------------------------------------------------------------------
Net Interest Income After Provision for
 Credit Losses                                  101,868       98,960
---------------------------------------------------------------------
Noninterest Income
   Trust and Asset Management                    14,098       14,052
   Mortgage Banking                               2,597        2,618
   Service Charges on Deposit Accounts           10,151       10,046
   Fees, Exchange, and Other Service
    Charges                                      15,147       15,394
   Investment Securities Gains (Losses),
    Net                                              (4)           8
   Insurance                                      4,201        5,324
   Other                                          4,619        8,074
---------------------------------------------------------------------
Total Noninterest Income                         50,809       55,516
---------------------------------------------------------------------
Noninterest Expense
   Salaries and Benefits                         43,319       44,366
   Net Occupancy                                  9,643        9,896
   Net Equipment                                  5,358        5,335
   Professional Fees                              4,057        5,689
   Other                                         20,802       19,310
---------------------------------------------------------------------
Total Noninterest Expense                        83,179       84,596
---------------------------------------------------------------------
Income Before Provision for Income Taxes         69,498       69,880
Provision for Income Taxes                       24,717       25,051
---------------------------------------------------------------------
Net Income                                  $    44,781  $    44,829
=====================================================================

Basic Earnings Per Share                    $      0.88  $      0.87
Diluted Earnings Per Share                  $      0.86  $      0.85

Balance Sheet Totals
Total Assets                                $10,187,038  $10,085,235
Net Loans and Leases                          6,077,446    6,110,892
Total Deposits                                7,907,468    7,756,586
Total Shareholders' Equity                      693,352      696,311

Performance Ratios
Net Income to Average Total Assets (ROA)           1.76 %       1.74 %
Net Income to Average Shareholders' Equity
 (ROE)                                            25.19        24.61
Net Interest Margin (2)                            4.43         4.30
Efficiency Ratio (3)                              53.92        53.72

(1) Certain prior period information has been reclassified to conform
 to current presentation.
(2) The net interest margin is defined as net interest income, on a
 fully-taxable equivalent basis, as a percentage of average earning
 assets.
(3) The efficiency ratio is defined as noninterest expense divided by
 total revenue (net interest income and noninterest income).

SOURCE: Bank of Hawaii Corporation

Bank of Hawaii Corporation
Stafford Kiguchi, 808-537-8580 (Media)
Mobile: 808-265-6367
skiguchi@boh.com
Cindy Wyrick, 808-537-8430 (Investors/Analysts)
cwyrick@boh.com