UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report               

(Date of earliest event reported) July 27, 2009

BANK OF HAWAII CORPORATION

(Exact name of registrant as specified in its charter)

(Registrant’s telephone number, including area code) (808) 694-8822

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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Exhibit 99.1

Bank of Hawaii Corporation Second Quarter 2009 Financial Results

·      Diluted Earnings Per Share $0.65

·      Net Income for the Quarter $31.0 Million

·      Board of Directors Declares Dividend of $0.45 Per Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (July 27, 2009) – Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.65 for the second quarter of 2009, down from diluted earnings per share of $1.00 in the same quarter last year.  Net income for the second quarter of 2009 was $31.0 million compared to net income of $48.3 million in the second quarter of 2008.  Results for the second quarter of 2009 included FDIC insurance expense of $9.0 million compared with $0.2 million in the second quarter of 2008.  Second quarter 2009 results also included a provision for credit losses of $28.7 million compared to a provision for credit losses of $7.2 million in the same quarter last year.  The return on average assets for the second quarter of 2009 was 1.06 percent, compared to 1.85 percent during the same quarter last year.  The return on average equity for the second quarter of 2009 was 14.49 percent compared to 24.82 percent for the second quarter of 2008.

During the quarter, the Company sold a loan made to a major mall owner, restructured a leveraged lease that involved a bankrupt automobile manufacturer, and wrote down the carrying value of a non-relationship syndicated credit that was subsequently sold.  The result of these three transactions was an increase in net charge-offs of $13.6 million.

Average deposits increased $471 million during the second quarter of 2009.  Shareholders’ equity increased $12 million to $846 million at June 30, 2009.  The allowance for loan and lease losses increased $3 million during the second quarter of 2009 and currently represents 2.23 percent of outstanding loans and leases.

“We continued to pursue our near-term strategies of maintaining strong liquidity, reserves, and capital during the second quarter of 2009,” said Allan R. Landon, Chairman, and CEO.  “Our profitability during the quarter was helped by increased net interest income.  The Company’s results included an industry-wide FDIC assessment and losses from the resolution of three significant credits.  Bank of Hawaii has a strong balance sheet and is well prepared.”

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For the six months ended June 30, 2009, net income was $67.0 million, down $38.5 million compared to net income of $105.5 million for the same period last year.  Diluted earnings per share were $1.40 for the first half of 2009, down from $2.18 for the first half of 2008.  The year-to-date return on average assets was 1.18 percent, down from 2.01 percent for the same period in 2008.  The year-to-date return on average equity was 16.13 percent, down from 27.33 percent for the six months ended June 30, 2008.

Results for the first six months of 2009 included gains of $13.7 million from the disposition of leased equipment and the sale of the Company’s retail insurance brokerage business.  These gains were offset by increases in the allowance for loan and lease losses and expenses for legal contingencies, an industry-wide FDIC assessment, and early debt retirement.  Results for the first half of 2008 included $25.3 million from the redemption of Visa shares and a lessee’s early buy-out of an aircraft lease.  Partially offsetting these prior year gains were expenses for employee incentives, legal contingencies, a call premium on Capital Securities, an increase in the allowance for loan and lease losses, and contributions to the Bank of Hawaii Charitable Foundation.  Details of these items are included in Table 2.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the second quarter of 2009 was $103.2 million, down $4.2 million from net interest income of $107.4 million in the second quarter of 2008, and up $5.9 million from net interest income of $97.3 million in the first quarter of 2009.  The decrease in net interest income compared to the second quarter of 2008 was largely due to a lower net interest margin resulting from greater liquidity being held at low yields, lower interest rates, and lower levels of loans.  The increase compared to the first quarter of 2009 was mainly due to a higher level of earning assets.  For the six months ended June 30, 2009, net interest income on a taxable-equivalent basis was $200.5 million compared to $209.8 million for the same period in 2008.  Analyses of the changes in net interest income are included in Tables 7a, 7b and 7c.

The net interest margin was 3.73 percent for the second quarter of 2009, a 68 basis point decrease from 4.41 percent in the second quarter of 2008 and a decrease of 3 basis points from 3.76 percent in the first quarter of 2009.   For the six months ended June 30, 2009, the net interest margin was 3.75 percent compared to 4.29 percent for the same six months in 2008.  The decrease in the net interest margin was largely the result of lower interest rates and the Company’s strategy to increase liquidity and reduce risk.

Results for the second quarter of 2009 included a provision for credit losses of $28.7 million compared with $7.2 million in the second quarter of 2008 and $24.9 million in the first quarter of 2009.  The provision for credit losses exceeded net charge-offs by $3.0 million in the second quarter of 2009.  The provision for credit losses exceeded net charge-offs by $2.5 million in the second quarter of 2008 and exceeded net charge-offs by $10.9 million in the first quarter of 2009.

Noninterest income was $59.8 million for the second quarter of 2009, a decrease of $0.7 million compared to $60.5 million in the second quarter of 2008, and a decrease of $10.5 million compared to $70.4 million in the first quarter of 2009.  Noninterest income in the second quarter of 2009 included a gain of $2.8 million related to the Company’s sale of its equity interest in an aircraft lease to a cargo carrier and $0.9 million due to the previously mentioned sale of the retail insurance brokerage business.  Results for the first quarter of 2009 included a gain of $10.0 million related to the disposition of leveraged leases for two watercraft.

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Noninterest expense was $89.6 million in the second quarter of 2009, up $5.7 million from $83.9 million in the same quarter last year, and up $1.7 million from $87.9 million in the previous quarter.  Noninterest expense in the second quarter of 2009 included FDIC insurance expense of $9.0 million, including the Company’s $5.7 million share of an industry-wide assessment.  FDIC insurance expense in the second quarter of 2008 was $0.2 million and $1.8 million in the first quarter of 2009.  Salaries and benefits decreased during the second quarter of 2009 primarily due to a reduction in the reserves for medical and dental expenses, and lower payroll taxes.  An analysis of salary and benefit expenses is included in Table 8.

The efficiency ratio for the second quarter of 2009 was 55.07 percent, compared with an efficiency ratio of 50.01 percent in the same quarter last year and 52.52 percent in the previous quarter.  The efficiency ratio for the first half of 2009 was 53.78 percent compared with 49.80 percent for the same period last year.

The effective tax rate for the second quarter of 2009 was 30.18 percent compared to 37.03 percent during the same quarter last year and 34.00 percent in the previous quarter.  The lower effective tax rate in the second quarter of 2009 was primarily due to accounting for the termination of the leveraged lease that resulted in a $1.6 million income tax benefit.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury & Other.  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 12a and 12b.

Asset Quality

Credit quality continued to reflect the weak economy during the second quarter of 2009.  Non-accrual loans and leases were $38.6 million at the end of June 30, 2009, up from $6.5 million at June 30, 2008, and down from $40.0 million at March 31, 2009.  As a percentage of total loans and leases, non-accrual loans and leases were 0.63 percent at June 30, 2009.  The decrease in non-accrual loans and leases compared to the prior quarter was due to the previously mentioned sale of a commercial loan made to a mall owner, which was partially offset by an increase in consumer non-accrual loans.   The increase in non-accrual consumer loans was largely due to land loans, second homes, and investor properties on neighbor islands.  More information on changes in nonperforming assets is presented in Table 10.

During the quarter, the Company restructured an existing leveraged lease covering 31 locomotives, which was originally guaranteed by an automotive company that went through bankruptcy proceedings.  The restructured lease is now accounted for as a direct financing lease.  In terminating the existing leveraged lease transaction, the Company removed $17.9 million from lease outstandings, recognized $45.9 million in the new direct financing lease, and recognized $32.4 million in non-recourse debt.  As a result of the restructuring, the Company recorded a $4.4 million charge-off and a $1.6 million income tax benefit.

Net charge-offs during the second quarter of 2009 were $25.7 million compared to $4.7 million in the second quarter last year and $14.0 million in the first quarter of 2009.  Net charge-offs for the second quarter of 2009 included $6.9 million for the previously discussed commercial loan sold during the quarter, $4.4 million as a result of the lease restructuring, and $2.3 million related to a syndicated credit that was sold.  The remaining net charge-offs were largely in the consumer portfolio.

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The allowance for loan and lease losses was $137.4 million at June 30, 2009, up from $102.5 million at June 30, 2008, and up from $134.4 million at March 31, 2009.  The ratio of the allowance for loan and lease losses to total loans and leases increased to 2.23 percent at June 30, 2009.  The reserve for unfunded commitments at June 30, 2009 was $5.4 million.  Details of charge-offs, recoveries and the components of the total reserve for credit losses are summarized in Table 11.

Other Financial Highlights

Total assets were $12.19 billion at June 30, 2009, up $1.82 billion from $10.37 billion at June 30, 2008, and up $747 million from $11.45 billion at March 31, 2009.  Average total assets were $11.75 billion during the second quarter of 2009, up $1.25 billion from $10.50 billion during the second quarter last year, and up $657 million from $11.10 billion during the previous quarter.  The growth in assets was the result of the Company’s strong deposit generation.

Total loans and leases were $6.15 billion at June 30, 2009, down $368 million from $6.52 billion at June 30, 2008, and down $189 million compared with $6.34 billion at March 31, 2009.  Average loans and leases were $6.26 billion during the second quarter of 2009, down $273 million from average loans and leases of $6.53 billion during the second quarter last year, and down $188 million from $6.45 billion during the previous quarter.  Total commercial loans were $2.33 billion at June 30, 2009, down $44 million from $2.37 billion at June 30, 2008, and down slightly from March 31, 2009.  Total consumer loans were $3.82 billion at June 30, 2009, down in all loan products compared with previous quarters due to reduced consumer demand.  Loan and lease portfolio balances are summarized in Tables 6a, 6b, and 9.

Total deposits were $9.02 billion at June 30, 2009, up $1.12 billion from $7.90 billion at June 30, 2008, and down $193 million from $9.21 billion at March 31, 2009.  The increase in total deposits compared with the same period last year was widespread among deposit categories.  The decrease in deposits compared with the previous quarter was due to a reduction in public funds, partially offset by continued growth in consumer and commercial deposits.  Average total deposits were $9.22 billion during the second quarter of 2009, up $1.26 billion from $7.96 billion during the second quarter last year, and up $471 million from $8.75 billion during the previous quarter.  Deposit balances are summarized in Table 9.

Total long-term debt was $91.4 million at June 30, 2009, down $113.9 million from long-term debt of $205.4 million at June 30, 2008, and up $32.4 million from $59.0 million at March 31, 2009.  The decrease compared to the same quarter last year was due to the repayment of $119.0 million in subordinated notes and the early payment of $25.0 million in privately placed notes during the first quarter of 2009.  The increase in long-term debt compared to the previous quarter was due to the accounting for the previously discussed leveraged lease restructure.

Consistent with the Company’s plans to build capital levels, no shares were repurchased during the second quarter of 2009.  Remaining buyback authority under the share repurchase program was $85.4 million at June 30, 2009.  Total shareholders’ equity was $845.9 million at June 30, 2009, up from $767.6 million at June 30, 2008, and up from $833.9 million at March 31, 2009.  The ratio of tangible common equity to risk weighted assets was 13.02 percent at June 30, 2009, up from 10.81 percent at June 30, 2008, and up from 12.47 percent at March 31, 2009.  At June 30, 2009, the Tier 1 leverage ratio was 6.66 percent compared to 7.01 percent at June 30, 2008 and 6.94 percent at March 31, 2009.  The decrease in the Tier 1 leverage ratio compared with the prior quarters was due to significant growth in marketable securities.

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The Company’s Board of Directors declared a quarterly cash dividend of $0.45 per share on the Company’s outstanding shares.  The dividend will be payable on September 15, 2009 to shareholders of record at the close of business on August 31, 2009.

Hawaii Economy

Hawaii’s economy continued to reflect weakness during the second quarter of 2009.  The statewide unemployment rate increased to 7.4 percent on a seasonally adjusted basis during the quarter and total jobs contracted 3.1 percent from the beginning of the year.  Residential real estate prices in Hawaii have held their value better than many U. S. mainland markets.  While total 30 days-plus mortgage delinquencies in the state of Hawaii rose to 5.64 percent, they remain significantly below the national average of 8.22 percent.  Bank of Hawaii’s 30 days-plus mortgage delinquencies were 1.07 percent at June 30, 2009.  Visitor levels, both arrivals and expenditures, remain below the comparable periods last year, although arrivals from the Pacific states, the largest regional market, rose 5.4 percent in May, the first increase since February 2008.  More information on Hawaii economic trends is presented in Table 14.

Conference Call Information

The Company will review its second quarter 2009 financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time).  The conference call 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 for participants in the United States is 866-383-8008.  International participants should call 617-597-5341.  No pass code is required.  A replay of the conference call will be available for one week beginning Monday, July 27, 2009 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the pass code number 75775269 when prompted.  A replay will also be available on the Company’s web site.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain “forward-looking statements”, such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations.  Do not unduly rely on forward-looking statements.  Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation’s Annual Report on Form 10-K for the year ended December 31, 2008, which was filed with the U.S. Securities and Exchange Commission.  We have not committed to update forward-looking statements to reflect later events or circumstances.

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.

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

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