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 23, 2012
 
BANK OF HAWAII CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware	 	1-6887	 	99-0148992	
(State of Incorporation)	 	(Commission	 	(IRS Employer	
 	 	File Number)	 	Identification No.)	
 
130 Merchant Street, Honolulu, Hawaii	 	96813	
(Address of principal executive offices)	 	(Zip Code)	
 
(Registrant’s telephone number, including area code)  (888) 643-3888
 
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))

 

 
Item 2.02.                                       Results of Operations and Financial Condition.
 
On July 23, 2012, Bank of Hawaii Corporation announced its results of operations for the quarter ended June 30, 2012.  The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and incorporated herein by reference.
 
Item 9.01.             Financial Statements and Exhibits.
 
(d)	Exhibits	
 
Exhibit No.	 	
 
99.1	July 23, 2012 Press Release: Bank of Hawaii Corporation Second Quarter 2012 Financial Results. Any internet addresses provided in this release are for informational purposes only and are not intended to be hyperlinks. Furnished herewith.	
 
2

 
SIGNATURES
 
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.

Date: July 23, 2012	 	BANK OF HAWAII CORPORATION	

 	 	 	By	/s/ MARK A. ROSSI	
 	 	 	 	     Mark A. Rossi	
 	 	 	 	     Vice Chairman and Corporate Secretary	
 
3

Exhibit 99.1

 
Bank of Hawaii Corporation Second Quarter 2012 Financial Results
 
·                 Diluted Earnings Per Share $0.90
·                 Net Income $40.7 Million
·                 Board of Directors Declares Dividend of $0.45 Per Share
·                 Board of Directors Increases Repurchase Authorization by $75.0 Million
 
FOR IMMEDIATE RELEASE
 
HONOLULU, HI (July 23, 2012) — Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.90 for the second quarter of 2012, down from $0.95 in the previous quarter, and up from $0.74 in the same quarter last year.  Net income for the second quarter of 2012 was $40.7 million, a decrease of $3.1 million or 7.0 percent compared with net income of $43.8 million in the first quarter of 2012, and up $5.6 million or 15.9 percent from net income of $35.1 million in the second quarter of 2011.
 
Loan and lease balances increased to $5.7 billion during the second quarter of 2012, up 1.3 percent compared with the end of the first quarter of 2012 and up 6.0 percent compared with the end of the same quarter last year.  Deposit growth continued, increasing to $11.5 billion at June 30, 2012.  The allowance for loan and lease losses declined to $132.4 million and currently represents 2.34 percent of outstanding loans and leases.
 
“Bank of Hawaii Corporation continued to perform well in the second quarter of 2012,” said Peter Ho, Chairman, President and CEO.  “Loan balances continued to grow and deposits remained strong.  The net interest margin declined however due to continuing low interest rates.  We remain committed to risk and expense management and were pleased to see continued improvement in these areas in the second quarter.”
 
The return on average assets for the second quarter of 2012 was 1.19 percent, down from 1.29 percent in the previous quarter, and up from 1.09 percent for the same quarter last year.  The return on average equity for the second quarter of 2012 was 16.19 percent compared with 17.26 percent for the first quarter of 2012 and 13.86 percent in the second quarter of 2011. The efficiency ratio for the second quarter of 2012 was 56.77 percent, an improvement from 58.35 percent in the previous quarter and 63.81 percent in the same quarter last year.
 
- more -

 

 
For the six month period ended June 30, 2012, net income was $84.6 million, up from net income of $77.5 million for the same period last year.  Net income in the first half of 2011 included net gains of $6.1 million on the sales of investment securities which was offset by a litigation settlement of $9.0 million.  Diluted earnings per share were $1.85 for the first half of 2012, up from diluted earnings per share of $1.62 for the first half of 2011.  The year-to-date return on average assets was 1.24 percent, up from 1.21 percent for the same six months in 2011.  The year-to-date return on average equity was 16.73 percent, up from 15.36 percent for the six months ended June 30, 2011.  The efficiency ratio for the first half of 2012 was 57.57 percent compared with 59.84 percent in the same period last year.
 
Financial Highlights
 
Net interest income, on a taxable equivalent basis, for the second quarter of 2012 was $97.9 million, down $2.1 million from net interest income of $100.0 million in the first quarter of 2012 and essentially flat with the second quarter of 2011.  Net interest income for the first half of 2012 was $197.9 million compared with net interest income of $198.0 million for the first half of 2011.  Analyses of the changes in net interest income are included in Tables 8a, 8b, and 8c.
 
The net interest margin was 2.98 percent for the second quarter of 2012, an 8 basis point decrease from the net interest margin of 3.06 percent in the first quarter of 2012 and an 18 basis point decrease from 3.16 percent in the second quarter of 2011.  The net interest margin for the first six months of 2012 was 3.02 percent compared with 3.20 percent for the same six-month period last year primarily due to increased levels of liquidity and lower yields on loans and investment securities.
 
Results for the second quarter of 2012 included a provision for credit losses of $0.6 million, or $3.2 million less than net charge-offs.  The provision for credit losses during the first quarter of 2012 was $0.4 million, or $3.0 million less than net charge-offs.  The provision for credit losses during the second quarter of 2011 was $3.6 million, or $2.4 million less than net charge-offs.
 
Noninterest income was $46.8 million for the second quarter of 2012, a decrease of $1.2 million compared with noninterest income of $48.1 million in the first quarter of 2012, and a decrease of $2.6 million compared with noninterest income of $49.5 million in the second quarter of 2011.  Mortgage banking continues to be strong and produced income of $7.6 million in the second quarter of 2012 compared with $5.1 million in the first quarter of 2012 and $2.7 million in the second quarter last year.  There were no significant nonrecurring noninterest income items during the second quarter of 2012 and 2011. Noninterest income in the first quarter of 2012 included a gain of $3.5 million on the early termination of leveraged leases for two cargo ships and a loss of $1.0 million on the sale and termination of an aircraft lease.  Noninterest income for the first half of 2012 was $94.9 million compared with noninterest income of $103.4 million for the first half of 2011.
 
Noninterest expense was $80.7 million for the second quarter of 2012, down $4.5 million from noninterest expense of $85.2 million in the first quarter of 2012, and down $13.0 million from noninterest expense of $93.8 million in the same quarter last year.  There were no significant nonrecurring noninterest expense items during the second quarter of 2012.  Noninterest expense in the first quarter of 2012 included an expense of $1.2 million related to the final phase of a refresh of the Company’s personal computers.  Noninterest expense in the second quarter of 2011 included a litigation settlement of $9.0 million related to overdraft claims.  Noninterest expense for the first
 
- more -
 
2

 
half of 2012 was $166.0 million, a decrease of $13.9 million compared with noninterest expense of $179.9 million for the first half of 2011.  An analysis of noninterest expenses related to salaries and benefits is included in Table 9.
 
The effective tax rate for the second quarter of 2012 was 33.04 percent compared with 27.55 percent in the previous quarter and 29.12 percent during the same quarter last year.  The lower effective tax rate in the first quarter of 2012 was due to a $2.7 million credit related to the early termination of leveraged leases.  The lower effective tax rate for the second quarter of 2011 was primarily due to the release of reserves related to the closing of Internal Revenue Service audits.
 
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 13a and 13b.
 
Asset Quality
 
The Company’s overall asset quality remained strong during the second quarter of 2012 and reflects the improving Hawaii economy.  Total non-performing assets were $41.5 million at June 30, 2012, up slightly from $41.4 million at March 31, 2012.  Non-performing assets continue to be impacted by the lengthy judiciary foreclosure process for residential mortgage loans.  As a percentage of total loans and leases and foreclosed real estate, non-performing assets were 0.73 percent at June 30, 2012, down slightly from 0.74 percent at March 31, 2012 and up from 0.64 percent at June 30, 2011.
 
Accruing loans and leases past due 90 days or more were $7.2 million at June 30, 2012, down from $10.1 million at March 31, 2012 and $7.8 million at June 30, 2011.  Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $31.1 million at June 30, 2012 and was primarily comprised of residential mortgage loans with lowered monthly payments to accommodate the borrowers’ financial needs for a period of time.  More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.
 
Net loans and leases charged off during the second quarter of 2012 were $3.8 million or 0.27 percent annualized of total average loans and leases outstanding.  Loan and lease charge-offs of $5.9 million during the quarter were partially offset by recoveries of $2.1 million.  Net charge-offs in the first quarter of 2012 were $3.4 million, or 0.24 percent annualized of total average loans and leases outstanding, and were comprised of $7.8 million in charge-offs partially offset by recoveries of $4.4 million.  Net charge-offs during the second quarter of 2011 were $6.0 million or 0.45 percent annualized of total average loans and leases outstanding, and were comprised of $9.0 million in charge-offs partially offset by recoveries of $3.0 million.  Net charge-offs in the first half of 2012 were $7.1 million, or 0.26 percent annualized of total average loans and leases outstanding compared with net charge-offs of $10.7 million , or 0.40 percent annualized of total average loans and leases outstanding for the first half of 2011.
 
The allowance for loan and lease losses was reduced to $132.4 million at June 30, 2012.  The ratio of the allowance for loan and lease losses to total loans and leases was 2.34 percent at June 30, 2012, a decrease of 8 basis points from the previous quarter, commensurate with improvements in credit quality and a generally improving Hawaii economy.  The reserve for
 
- more -
 
3

 
unfunded commitments at June 30, 2012 was unchanged at $5.4 million.  Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.
 
Other Financial Highlights
 
Total assets increased to $13.92 billion at June 30, 2012, up from total assets of $13.76 billion at March 31, 2012 and total assets of $13.16 billion at June 30, 2011.  Average total assets were $13.75 billion during the second quarter of 2012, up from $13.68 billion during the previous quarter and $12.97 billion during the same quarter last year.
 
The total investment securities portfolio totaled $7.07 billion at June 30, 2012, down from $7.25 billion at March 31, 2012, and up from $6.62 billion at June 30, 2011.  The portfolio remains largely comprised of securities issued by U.S. government agencies.
 
Total loans and leases increased to $5.67 billion at June 30, 2012, up from total loans and leases of $5.60 billion at March 31, 2012 and $5.35 billion at June 30, 2011.  Average total loans and leases were $5.64 billion during the second quarter of 2012, up from $5.56 billion during the previous quarter, and up from $5.33 billion during the same quarter last year.  Loan and lease portfolio balances, including the higher risk loans outstanding, are summarized in Table 10.
 
Total deposits increased to $11.55 billion at June 30, 2012, up from total deposits of $10.62 billion at March 31, 2012 and total deposits of $9.98 billion at June 30, 2011.  The growth was primarily due to a $720.3 million increase in public time deposits, mainly the result of local government entities transferring funds from repurchase agreements to time deposits.  Average total deposits were $10.62 billion in the second quarter of 2012, up from average deposits of $10.43 billion during the previous quarter, and up from average deposits of $9.79 billion during the same quarter last year.
 
During the second quarter of 2012, the Company repurchased 424.9 thousand shares of common stock at a total cost of $20.0 million under its share repurchase program.  The average cost was $46.97 per share repurchased.  From the beginning of the share repurchase program initiated during July 2001 through June 30, 2012, the Company has repurchased 49.6 million shares and returned $1.8 billion to shareholders at an average cost of $36.22 per share.
 
The Company’s Board of Directors increased the authorization under the share repurchase program by an additional $75.0 million.  This authorization, combined with previously announced authorizations of $1.82 billion, brings the total repurchase authority to $1.90 billion.  From July 2 through July 20, 2012, the Company repurchased an additional 70.0 thousand shares of common stock at an average cost of $46.10 per share repurchased.  Remaining buyback authority under the share repurchase program was $95.8 million at July 20, 2012.
 
Total shareholders’ equity was $1.0 billion at June 30, 2012, up from total shareholders’ equity of $995.9 million at March 31, 2012 and essentially flat with shareholders’ equity of $1.0 billion at June 30, 2011.  The ratio of tangible common equity to risk-weighted assets was 17.57 percent at the end of the second quarter of 2012, compared with 17.62 percent at the end of the first quarter of 2012, and 18.95 percent at the end of the same quarter last year.  The Tier 1 leverage ratio at June 30, 2012 was 6.57 percent, unchanged from March 31, 2012, and down from 7.07 percent at June 30, 2011.
 
- more -
 
4

 
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 17, 2012 to shareholders of record at the close of business on August 31, 2012.
 
Hawaii Economy
 
Hawaii’s economy was stable during the second quarter with continued improvement in tourism, the State’s largest industry.  For the first five months of 2012, total visitor arrivals increased by 10.0% and visitor spending increased by 16.8% compared to the same period in 2011.  The increase in visitor spending was primarily due to strong growth from international visitors.  Hotel occupancy and revenue per available room also continued to improve.  Statewide seasonally adjusted unemployment was 6.4% in June 2012, compared to 8.2% nationally.  For the first six months of 2012, the volume of single-family home sales on Oahu was relatively unchanged from the same period in 2011, while the median price of single-family homes sold was 8.7% higher compared to the same period in 2011.  Single-family home inventory on Oahu continued to shrink and was at approximately four months as of June 30, 2012.  More information on current Hawaii economic trends is presented in Table 15.
 
Conference Call Information
 
The Company will review its second quarter 2012 financial results today at 8:00 a.m. Hawaii 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.  Conference call participants located in the United States should dial 800-237-9752.  International participants should dial 617-847-8706.  Use the pass code “Bank of Hawaii” to access the call.  A replay will be available for one week beginning Monday, July 23, 2012 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the pass code number 86421715 when prompted.  A replay will also be available via the Investor Relations link 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, 2011, 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.
 
# # # #
 
5

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Financial Highlights	 	Table 1a	
 
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands, except per share amounts)	 	2012	 	2012	 	2011	 	2012	 	2011	 	
For the Period:	 	 	 	 	 	 	 	 	 	 	 	
Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	95,381	 	$	97,948	 	$	97,499	 	$	193,329	 	$	197,196	 	
Provision for Credit Losses	 	628	 	351	 	3,600	 	979	 	8,291	 	
Total Noninterest Income	 	46,848	 	48,082	 	49,463	 	94,930	 	103,385	 	
Total Noninterest Expense	 	80,747	 	85,207	 	93,774	 	165,954	 	179,856	 	
Net Income	 	40,747	 	43,810	 	35,148	 	84,557	 	77,508	 	
Basic Earnings Per Share	 	0.90	 	0.96	 	0.74	 	1.86	 	1.63	 	
Diluted Earnings Per Share	 	0.90	 	0.95	 	0.74	 	1.85	 	1.62	 	
Dividends Declared Per Share	 	0.45	 	0.45	 	0.45	 	0.90	 	0.90	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.19	%	1.29	%	1.09	%	1.24	%	1.21	%	
Return on Average Shareholders’ Equity	 	16.19	 	17.26	 	13.86	 	16.73	 	15.36	 	
Efficiency Ratio (1)	 	56.77	 	58.35	 	63.81	 	57.57	 	59.84	 	
Net Interest Margin (2)	 	2.98	 	3.06	 	3.16	 	3.02	 	3.20	 	
Dividend Payout Ratio (3)	 	50.00	 	46.88	 	60.81	 	48.39	 	55.21	 	
Average Shareholders’ Equity to Average Assets	 	7.36	 	7.46	 	7.84	 	7.41	 	7.85	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Balances	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases	 	$	5,641,588	 	$	5,563,358	 	$	5,326,123	 	$	5,602,473	 	$	5,318,993	 	
Average Assets	 	13,750,488	 	13,681,229	 	12,967,232	 	13,715,859	 	12,966,437	 	
Average Deposits	 	10,622,420	 	10,430,215	 	9,790,349	 	10,526,317	 	9,831,809	 	
Average Shareholders’ Equity	 	1,012,182	 	1,020,668	 	1,016,813	 	1,016,425	 	1,017,795	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Market Price Per Share of Common Stock	 	 	 	 	 	 	 	 	 	 	 	
Closing	 	$	45.95	 	$	48.35	 	$	46.52	 	$	45.95	 	$	46.52	 	
High	 	49.99	 	48.75	 	49.26	 	49.99	 	49.26	 	
Low	 	44.02	 	44.08	 	44.90	 	44.02	 	44.32	 	
 
 	 	 	 	June 30,	 	March 31,	 	December 31,	 	June 30,	 	
 	 	 	 	2012	 	2012	 	2011	 	2011	 	
As of Period End:	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	 	 	$	5,671,483	 	$	5,598,932	 	$	5,538,304	 	$	5,351,473	 	
Total Assets	 	 	 	13,915,626	 	13,759,409	 	13,846,391	 	13,161,204	 	
Total Deposits	 	 	 	11,547,993	 	10,621,170	 	10,592,623	 	9,979,034	 	
Long-Term Debt	 	 	 	28,075	 	30,687	 	30,696	 	30,714	 	
Total Shareholders’ Equity	 	 	 	1,003,825	 	995,897	 	1,002,667	 	1,003,450	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Asset Quality	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	 	 	$	132,443	 	$	135,606	 	$	138,606	 	$	144,976	 	
Non-Performing Assets	 	 	 	41,494	 	41,406	 	40,790	 	34,156	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Financial Ratios	 	 	 	 	 	 	 	 	 	 	 	
Allowance to Loans and Leases Outstanding	 	 	 	2.34	%	2.42	%	2.50	%	2.71	%	
Tier 1 Capital Ratio	 	 	 	16.41	 	16.50	 	16.68	 	17.96	 	
Total Capital Ratio	 	 	 	17.67	 	17.76	 	17.95	 	19.23	 	
Tier 1 Leverage Ratio	 	 	 	6.57	 	6.57	 	6.73	 	7.07	 	
Total Shareholders’ Equity to Total Assets	 	 	 	7.21	 	7.24	 	7.24	 	7.62	 	
Tangible Common Equity to Tangible Assets (4)	 	 	 	7.00	 	7.02	 	7.03	 	7.40	 	
Tangible Common Equity to Risk-Weighted Assets (4)	 	 	 	17.57	 	17.62	 	17.93	 	18.95	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Non-Financial Data	 	 	 	 	 	 	 	 	 	 	 	
Full-Time Equivalent Employees	 	 	 	2,312	 	2,318	 	2,370	 	2,405	 	
Branches and Offices	 	 	 	77	 	81	 	81	 	82	 	
ATMs	 	 	 	494	 	498	 	506	 	508	 	

(1)  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
 
(2)  Net interest margin is defined as net interest income, on a taxable equivalent basis, as a percentage of average earning assets.
 
(3)  Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.
 
(4) Tangible common equity, a non-GAAP financial measure, is defined by the Company as shareholders’ equity minus goodwill and intangible assets.  Intangible assets are included as a component of other assets in the Consolidated Statements of Condition.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Reconciliation of Non-GAAP Financial Measures	 	Table 1b	
 
 	 	June 30,	 	March 31,	 	December 31,	 	June 30,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	2011	 	
 	 	 	 	 	 	 	 	 	 	
Total Shareholders’ Equity	 	$	1,003,825	 	$	995,897	 	$	1,002,667	 	$	1,003,450	 	
Less: Goodwill	 	31,517	 	31,517	 	31,517	 	31,517	 	
Intangible Assets	 	58	 	71	 	83	 	108	 	
Tangible Common Equity	 	$	972,250	 	$	964,309	 	$	971,067	 	$	971,825	 	
 	 	 	 	 	 	 	 	 	 	
Total Assets	 	$	13,915,626	 	$	13,759,409	 	$	13,846,391	 	$	13,161,204	 	
Less: Goodwill	 	31,517	 	31,517	 	31,517	 	31,517	 	
Intangible Assets	 	58	 	71	 	83	 	108	 	
Tangible Assets	 	$	13,884,051	 	$	13,727,821	 	$	13,814,791	 	$	13,129,579	 	
 	 	 	 	 	 	 	 	 	 	
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements	 	$	5,532,285	 	$	5,473,661	 	$	5,414,481	 	$	5,128,368	 	
 	 	 	 	 	 	 	 	 	 	
Total Shareholders’ Equity to Total Assets	 	7.21	%	7.24	%	7.24	%	7.62	%	
Tangible Common Equity to Tangible Assets (Non-GAAP)	 	7.00	%	7.02	%	7.03	%	7.40	%	
 	 	 	 	 	 	 	 	 	 	
Tier 1 Capital Ratio	 	16.41	%	16.50	%	16.68	%	17.96	%	
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)	 	17.57	%	17.62	%	17.93	%	18.95	%	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Net Significant Income (Expense) Items	 	Table 2	
 
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	2012	 	2011	 	
Investment Securities Gains, Net	 	—	 	—	 	—	 	—	 	6,084	 	
Gains (Losses) on Disposal of Leased Equipment	 	—	 	2,473	 	—	 	2,473	 	—	 	
Decrease in Allowance for Loan and Lease Losses	 	3,163	 	3,000	 	2,382	 	6,163	 	2,382	 	
PC Refresh	 	—	 	(1,163	)	—	 	(1,163	)	—	 	
Legal Settlement Related to OD Claims	 	—	 	—	 	(9,000	)	—	 	(9,000	)	
Significant Income (Expense) Items Before the Provision (Benefit) for Income Taxes	 	3,163	 	4,310	 	(6,618	)	7,473	 	(534	)	
Income Taxes Impact Related to Lease Transactions	 	—	 	(2,733	)	—	 	(2,733	)	—	 	
Income Tax Impact	 	1,107	 	293	 	(2,316	)	1,400	 	(187	)	
Net Significant Income (Expense) Items	 	$	2,056	 	$	6,750	 	$	(4,302	)	$	8,806	 	$	(347	)	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Income	 	Table 3	
 
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands, except per share amounts)	 	2012	 	2012	 	2011	 	2012	 	2011	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	63,910	 	$	64,691	 	$	65,542	 	$	128,601	 	$	132,135	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	16,988	 	17,713	 	23,490	 	34,701	 	61,159	 	
Held-to-Maturity	 	25,054	 	26,413	 	20,553	 	51,467	 	28,186	 	
Deposits	 	1	 	2	 	2	 	3	 	—	 	
Funds Sold	 	119	 	129	 	297	 	248	 	548	 	
Other	 	281	 	280	 	279	 	561	 	558	 	
Total Interest Income	 	106,353	 	109,228	 	110,163	 	215,581	 	222,586	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	3,219	 	3,473	 	4,792	 	6,692	 	10,024	 	
Securities Sold Under Agreements to Repurchase	 	7,250	 	7,304	 	7,338	 	14,554	 	14,379	 	
Funds Purchased	 	5	 	5	 	5	 	10	 	11	 	
Long-Term Debt	 	498	 	498	 	529	 	996	 	976	 	
Total Interest Expense	 	10,972	 	11,280	 	12,664	 	22,252	 	25,390	 	
Net Interest Income	 	95,381	 	97,948	 	97,499	 	193,329	 	197,196	 	
Provision for Credit Losses	 	628	 	351	 	3,600	 	979	 	8,291	 	
Net Interest Income After Provision for Credit Losses	 	94,753	 	97,597	 	93,899	 	192,350	 	188,905	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	11,195	 	10,918	 	11,427	 	22,113	 	23,233	 	
Mortgage Banking	 	7,581	 	5,050	 	2,661	 	12,631	 	5,783	 	
Service Charges on Deposit Accounts	 	9,225	 	9,591	 	9,375	 	18,816	 	19,307	 	
Fees, Exchange, and Other Service Charges	 	12,326	 	12,399	 	16,662	 	24,725	 	31,607	 	
Investment Securities Gains (Losses), Net	 	—	 	(90	)	—	 	(90	)	6,084	 	
Insurance	 	2,399	 	2,278	 	3,210	 	4,677	 	5,981	 	
Other	 	4,122	 	7,936	 	6,128	 	12,058	 	11,390	 	
Total Noninterest Income	 	46,848	 	48,082	 	49,463	 	94,930	 	103,385	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	44,037	 	47,024	 	46,800	 	91,061	 	93,582	 	
Net Occupancy	 	10,058	 	10,516	 	10,476	 	20,574	 	20,803	 	
Net Equipment	 	4,669	 	5,826	 	4,741	 	10,495	 	9,439	 	
Professional Fees	 	2,386	 	2,132	 	2,294	 	4,518	 	4,452	 	
FDIC Insurance	 	2,088	 	2,071	 	2,010	 	4,159	 	5,254	 	
Other	 	17,509	 	17,638	 	27,453	 	35,147	 	46,326	 	
Total Noninterest Expense	 	80,747	 	85,207	 	93,774	 	165,954	 	179,856	 	
Income Before Provision for Income Taxes	 	60,854	 	60,472	 	49,588	 	121,326	 	112,434	 	
Provision for Income Taxes	 	20,107	 	16,662	 	14,440	 	36,769	 	34,926	 	
Net Income	 	$	40,747	 	$	43,810	 	$	35,148	 	$	84,557	 	$	77,508	 	
Basic Earnings Per Share	 	$	0.90	 	$	0.96	 	$	0.74	 	$	1.86	 	$	1.63	 	
Diluted Earnings Per Share	 	$	0.90	 	$	0.95	 	$	0.74	 	$	1.85	 	$	1.62	 	
Dividends Declared Per Share	 	$	0.45	 	$	0.45	 	$	0.45	 	$	0.90	 	$	0.90	 	
Basic Weighted Average Shares	 	45,221,293	 	45,709,936	 	47,428,718	 	45,465,910	 	47,638,752	 	
Diluted Weighted Average Shares	 	45,347,368	 	45,875,238	 	47,607,814	 	45,610,489	 	47,837,778	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Comprehensive Income	 	Table 4	
 
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	2012	 	2011	 	
Net Income	 	$	40,747	 	$	43,810	 	$	35,148	 	$	84,557	 	$	77,508	 	
Other Comprehensive Income (Loss), Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	
Net Unrealized Gains (Losses) on Investment Securities	 	3,387	 	(6,454	)	19,265	 	(3,067	)	(235	)	
Defined Benefit Plans	 	153	 	153	 	577	 	306	 	1,048	 	
Other Comprehensive Income (Loss)	 	3,540	 	(6,301	)	19,842	 	(2,761	)	813	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive Income	 	$	44,287	 	$	37,509	 	$	54,990	 	$	81,796	 	$	78,321	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Condition	 	Table 5	
 
 	 	June 30,	 	March 31,	 	December 31,	 	June 30,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	2011	 	
Assets	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	3,057	 	$	3,333	 	$	3,036	 	$	4,796	 	
Funds Sold	 	499,338	 	213,458	 	512,384	 	449,042	 	
Investment Securities	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	3,339,472	 	3,469,260	 	3,451,885	 	4,112,601	 	
Held to Maturity (Fair Value of $3,828,954; $3,877,269; $3,754,206; and $2,566,621)	 	3,729,665	 	3,779,272	 	3,657,796	 	2,512,024	 	
Loans Held for Sale	 	14,223	 	10,655	 	18,957	 	13,157	 	
Loans and Leases	 	5,671,483	 	5,598,932	 	5,538,304	 	5,351,473	 	
Allowance for Loan and Lease Losses	 	(132,443	)	(135,606	)	(138,606	)	(144,976	)	
Net Loans and Leases	 	5,539,040	 	5,463,326	 	5,399,698	 	5,206,497	 	
Total Earning Assets	 	13,124,795	 	12,939,304	 	13,043,756	 	12,298,117	 	
Cash and Noninterest-Bearing Deposits	 	131,845	 	154,100	 	154,489	 	203,326	 	
Premises and Equipment	 	107,421	 	106,543	 	103,550	 	105,785	 	
Customers’ Acceptances	 	176	 	117	 	476	 	882	 	
Accrued Interest Receivable	 	45,044	 	48,032	 	43,510	 	40,957	 	
Foreclosed Real Estate	 	2,569	 	3,530	 	3,042	 	2,590	 	
Mortgage Servicing Rights	 	23,254	 	23,915	 	24,279	 	25,072	 	
Goodwill	 	31,517	 	31,517	 	31,517	 	31,517	 	
Other Assets	 	449,005	 	452,351	 	441,772	 	452,958	 	
Total Assets	 	$	13,915,626	 	$	13,759,409	 	$	13,846,391	 	$	13,161,204	 	
 	 	 	 	 	 	 	 	 	 	
Liabilities	 	 	 	 	 	 	 	 	 	
Deposits	 	 	 	 	 	 	 	 	 	
Noninterest-Bearing Demand	 	$	3,105,798	 	$	2,964,372	 	$	2,850,923	 	$	2,507,358	 	
Interest-Bearing Demand	 	2,063,070	 	1,964,487	 	2,005,983	 	2,023,937	 	
Savings	 	4,435,894	 	4,440,674	 	4,398,638	 	4,413,390	 	
Time	 	1,943,231	 	1,251,637	 	1,337,079	 	1,034,349	 	
Total Deposits	 	11,547,993	 	10,621,170	 	10,592,623	 	9,979,034	 	
Funds Purchased	 	13,756	 	11,024	 	10,791	 	9,882	 	
Short-Term Borrowings	 	—	 	—	 	—	 	6,800	 	
Securities Sold Under Agreements to Repurchase	 	1,065,653	 	1,825,646	 	1,925,998	 	1,873,286	 	
Long-Term Debt	 	28,075	 	30,687	 	30,696	 	30,714	 	
Banker’s Acceptances	 	176	 	117	 	476	 	882	 	
Retirement Benefits Payable	 	41,812	 	41,862	 	46,949	 	30,588	 	
Accrued Interest Payable	 	5,114	 	6,318	 	5,330	 	5,457	 	
Taxes Payable and Deferred Taxes	 	86,095	 	104,259	 	95,840	 	106,244	 	
Other Liabilities	 	123,127	 	122,429	 	135,021	 	114,867	 	
Total Liabilities	 	12,911,801	 	12,763,512	 	12,843,724	 	12,157,754	 	
Shareholders’ Equity	 	 	 	 	 	 	 	 	 	
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2012 - 57,301,892 / 45,248,277; March 31, 2012 - 57,290,145 / 45,605,881; December 31, 2011 - 57,134,470 / 45,947,116; and June 30, 2011 - 57,132,830 / 47,225,303)	 	571	 	571	 	571	 	571	 	
Capital Surplus	 	511,729	 	509,860	 	507,558	 	502,777	 	
Accumulated Other Comprehensive Income	 	32,502	 	28,962	 	35,263	 	27,778	 	
Retained Earnings	 	1,044,588	 	1,024,736	 	1,003,938	 	964,420	 	
Treasury Stock, at Cost (Shares: June 30, 2012 - 12,053,615; March 31, 2012 - 11,684,264; December 31, 2011 - 11,187,354; and June 30, 2011 - 9,907,527)	 	(585,565	)	(568,232	)	(544,663	)	(492,096	)	
Total Shareholders’ Equity	 	1,003,825	 	995,897	 	1,002,667	 	1,003,450	 	
Total Liabilities and Shareholders’ Equity	 	$	13,915,626	 	$	13,759,409	 	$	13,846,391	 	$	13,161,204	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Shareholders’ Equity	 	Table 6	
 
 	 	 	 	 	 	 	 	Accum.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Other	 	 	 	 	 	 	 	
 	 	Common Shares	 	Common	 	Capital	 	Comprehensive	 	Retained	 	Treasury	 	 	 	
(dollars in thousands)	 	Outstanding	 	Stock	 	Surplus	 	Income	 	Earnings	 	Stock	 	Total	 	
Balance as of December 31, 2011	 	45,947,116	 	$	571	 	$	507,558	 	$	35,263	 	$	1,003,938	 	$	(544,663	)	$	1,002,667	 	
Net Income	 	—	 	—	 	—	 	—	 	84,557	 	—	 	84,557	 	
Other Comprehensive Loss	 	—	 	—	 	—	 	(2,761	)	—	 	—	 	(2,761	)	
Share-Based Compensation	 	—	 	—	 	3,723	 	—	 	—	 	—	 	3,723	 	
Common Stock Issued under Purchase and Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Compensation Plans and Related Tax Benefits	 	400,094	 	—	 	448	 	—	 	(2,758	)	10,684	 	8,374	 	
Common Stock Repurchased	 	(1,098,933	)	—	 	—	 	—	 	—	 	(51,586	)	(51,586	)	
Cash Dividends Paid ($0.90 per share)	 	—	 	—	 	—	 	—	 	(41,149	)	—	 	(41,149	)	
Balance as of June 30, 2012	 	45,248,277	 	$	571	 	$	511,729	 	$	32,502	 	$	1,044,588	 	$	(585,565	)	$	1,003,825	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance as of December 31, 2010	 	48,097,672	 	$	570	 	$	500,888	 	$	26,965	 	$	932,629	 	$	(449,919	)	$	1,011,133	 	
Net Income	 	—	 	—	 	—	 	—	 	77,508	 	—	 	77,508	 	
Other Comprehensive Income	 	—	 	—	 	—	 	813	 	—	 	—	 	813	 	
Share-Based Compensation	 	—	 	—	 	1,360	 	—	 	—	 	—	 	1,360	 	
Common Stock Issued under Purchase and Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Compensation Plans and Related Tax Benefits	 	237,619	 	1	 	529	 	—	 	(2,752	)	10,051	 	7,829	 	
Common Stock Repurchased	 	(1,109,988	)	—	 	—	 	—	 	—	 	(52,228	)	(52,228	)	
Cash Dividends Paid ($0.90 per share)	 	—	 	—	 	—	 	—	 	(42,965	)	—	 	(42,965	)	
Balance as of June 30, 2011	 	47,225,303	 	$	571	 	$	502,777	 	$	27,778	 	$	964,420	 	$	(492,096	)	$	1,003,450	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Average Balances and Interest Rates - Taxable Equivalent Basis	 	Table 7a	
 
 	 	Three Months Ended	 	Three Months Ended	 	Three Months Ended	 	
 	 	June 30, 2012	 	March 31, 2012	 	June 30, 2011	 	
 	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	
(dollars in millions)	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	3.0	 	$	—	 	0.12	%	$	3.2	 	$	—	 	0.25	%	$	5.3	 	$	—	 	0.15	%	
Funds Sold	 	237.8	 	0.1	 	0.20	 	262.4	 	0.1	 	0.19	 	518.4	 	0.3	 	0.23	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	3,410.4	 	19.4	 	2.27	 	3,451.6	 	19.7	 	2.28	 	4,061.4	 	23.9	 	2.35	 	
Held-to-Maturity	 	3,788.9	 	25.1	 	2.65	 	3,737.3	 	26.4	 	2.83	 	2,418.0	 	20.6	 	3.40	 	
Loans Held for Sale	 	12.1	 	0.1	 	4.22	 	12.0	 	0.1	 	4.22	 	11.5	 	0.1	 	3.25	 	
Loans and Leases (1)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	786.3	 	7.7	 	3.93	 	805.9	 	8.1	 	4.03	 	772.4	 	7.8	 	4.02	 	
Commercial Mortgage	 	953.5	 	10.4	 	4.40	 	941.6	 	10.5	 	4.50	 	890.9	 	10.8	 	4.87	 	
Construction	 	99.7	 	1.3	 	5.07	 	103.5	 	1.4	 	5.34	 	79.3	 	1.0	 	5.24	 	
Commercial Lease Financing	 	284.5	 	1.7	 	2.36	 	294.3	 	1.7	 	2.33	 	329.5	 	2.3	 	2.79	 	
Residential Mortgage	 	2,371.7	 	27.9	 	4.71	 	2,264.4	 	27.7	 	4.90	 	2,113.3	 	27.7	 	5.25	 	
Home Equity	 	772.3	 	8.4	 	4.36	 	778.9	 	8.6	 	4.43	 	785.3	 	9.5	 	4.83	 	
Automobile	 	193.7	 	2.9	 	6.03	 	193.1	 	3.0	 	6.20	 	192.8	 	3.3	 	6.92	 	
Other (2)	 	179.9	 	3.6	 	8.12	 	181.6	 	3.7	 	8.08	 	162.6	 	3.0	 	7.50	 	
Total Loans and Leases	 	5,641.6	 	63.9	 	4.54	 	5,563.3	 	64.7	 	4.66	 	5,326.1	 	65.4	 	4.92	 	
Other	 	80.0	 	0.3	 	1.41	 	79.9	 	0.3	 	1.40	 	79.9	 	0.3	 	1.40	 	
Total Earning Assets(3)	 	13,173.8	 	108.9	 	3.31	 	13,109.7	 	111.3	 	3.40	 	12,420.6	 	110.6	 	3.56	 	
Cash and Noninterest-Bearing Deposits	 	131.7	 	 	 	 	 	137.2	 	 	 	 	 	129.3	 	 	 	 	 	
Other Assets	 	445.0	 	 	 	 	 	434.3	 	 	 	 	 	417.3	 	 	 	 	 	
Total Assets	 	$	13,750.5	 	 	 	 	 	$	13,681.2	 	 	 	 	 	$	12,967.2	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	1,906.1	 	0.1	 	0.03	 	1,867.1	 	0.1	 	0.02	 	1,769.6	 	0.2	 	0.04	 	
Savings	 	4,444.5	 	1.1	 	0.10	 	4,439.0	 	1.3	 	0.12	 	4,523.0	 	1.9	 	0.17	 	
Time	 	1,253.9	 	2.0	 	0.63	 	1,260.2	 	2.1	 	0.66	 	1,009.5	 	2.7	 	1.07	 	
Total Interest-Bearing Deposits	 	7,604.5	 	3.2	 	0.17	 	7,566.3	 	3.5	 	0.18	 	7,302.1	 	4.8	 	0.26	 	
Short-Term Borrowings	 	15.0	 	—	 	0.14	 	15.7	 	—	 	0.12	 	16.2	 	—	 	0.13	 	
Securities Sold Under Agreements to Repurchase	 	1,808.5	 	7.3	 	1.59	 	1,916.0	 	7.3	 	1.51	 	1,862.4	 	7.4	 	1.56	 	
Long-Term Debt	 	30.6	 	0.5	 	6.51	 	30.7	 	0.5	 	6.49	 	32.6	 	0.5	 	6.49	 	
Total Interest-Bearing Liabilities	 	9,458.6	 	11.0	 	0.46	 	9,528.7	 	11.3	 	0.47	 	9,213.3	 	12.7	 	0.55	 	
Net Interest Income	 	 	 	$	97.9	 	 	 	 	 	$	100.0	 	 	 	 	 	$	97.9	 	 	 	
Interest Rate Spread	 	 	 	 	 	2.85	%	 	 	 	 	2.93	%	 	 	 	 	3.01	%	
Net Interest Margin	 	 	 	 	 	2.98	%	 	 	 	 	3.06	%	 	 	 	 	3.16	%	
Noninterest-Bearing Demand Deposits	 	3,017.9	 	 	 	 	 	2,864.0	 	 	 	 	 	2,488.2	 	 	 	 	 	
Other Liabilities	 	261.8	 	 	 	 	 	267.8	 	 	 	 	 	248.9	 	 	 	 	 	
Shareholders’ Equity	 	1,012.2	 	 	 	 	 	1,020.7	 	 	 	 	 	1,016.8	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	13,750.5	 	 	 	 	 	$	13,681.2	 	 	 	 	 	$	12,967.2	 	 	 	 	 	

(1)        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.
 
(2)        Comprised of other consumer revolving credit, installment, and consumer lease financing.
 
(3)        Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $2,481,000, $2,070,000 and $395,000 for the three months ended June 30, 2012, March 31, 2012, and June 30, 2011, respectively.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Average Balances and Interest Rates - Taxable Equivalent Basis	 	Table 7b	
 
 	 	Six Months Ended	 	Six Months Ended	 	
 	 	June 30, 2012	 	June 30, 2011	 	
 	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	
(dollars in millions)	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	3.1	 	$	—	 	0.19	%	$	4.7	 	$	—	 	0.02	%	
Funds Sold	 	250.1	 	0.2	 	0.20	 	488.0	 	0.6	 	0.22	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	3,431.0	 	39.0	 	2.28	 	4,849.8	 	61.9	 	2.56	 	
Held-to-Maturity	 	3,763.1	 	51.5	 	2.74	 	1,663.6	 	28.2	 	3.39	 	
Loans Held for Sale	 	12.0	 	0.3	 	4.22	 	10.0	 	0.2	 	4.26	 	
Loans and Leases (1)	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	796.1	 	15.8	 	3.98	 	774.1	 	15.6	 	4.07	 	
Commercial Mortgage	 	947.6	 	21.0	 	4.45	 	871.2	 	21.2	 	4.90	 	
Construction	 	101.6	 	2.6	 	5.21	 	80.0	 	2.0	 	5.14	 	
Commercial Lease Financing	 	289.4	 	3.4	 	2.35	 	331.5	 	4.6	 	2.77	 	
Residential Mortgage	 	2,318.0	 	55.7	 	4.80	 	2,107.0	 	56.3	 	5.34	 	
Home Equity	 	775.6	 	16.9	 	4.39	 	790.6	 	19.1	 	4.87	 	
Automobile	 	193.4	 	5.9	 	6.12	 	197.9	 	6.9	 	7.03	 	
Other (2)	 	180.8	 	7.3	 	8.10	 	166.7	 	6.2	 	7.52	 	
Total Loans and Leases	 	5,602.5	 	128.6	 	4.60	 	5,319.0	 	131.9	 	4.98	 	
Other	 	80.0	 	0.6	 	1.40	 	79.9	 	0.6	 	1.40	 	
Total Earning Assets(3)	 	13,141.8	 	220.2	 	3.36	 	12,415.0	 	223.4	 	3.61	 	
Cash and Noninterest-Bearing Deposits	 	134.5	 	 	 	 	 	131.9	 	 	 	 	 	
Other Assets	 	439.6	 	 	 	 	 	419.5	 	 	 	 	 	
Total Assets	 	$	13,715.9	 	 	 	 	 	$	12,966.4	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	1,886.6	 	0.2	 	0.03	 	1,787.2	 	0.4	 	0.04	 	
Savings	 	4,441.8	 	2.4	 	0.11	 	4,529.9	 	4.1	 	0.18	 	
Time	 	1,257.0	 	4.1	 	0.64	 	1,027.6	 	5.5	 	1.08	 	
Total Interest-Bearing Deposits	 	7,585.4	 	6.7	 	0.18	 	7,344.7	 	10.0	 	0.28	 	
Short-Term Borrowings	 	15.3	 	—	 	0.13	 	16.6	 	—	 	0.13	 	
Securities Sold Under Agreements to Repurchase	 	1,862.3	 	14.6	 	1.55	 	1,812.2	 	14.4	 	1.58	 	
Long-Term Debt	 	30.7	 	1.0	 	6.50	 	32.6	 	1.0	 	5.99	 	
Total Interest-Bearing Liabilities	 	9,493.7	 	22.3	 	0.47	 	9,206.1	 	25.4	 	0.55	 	
Net Interest Income	 	 	 	$	197.9	 	 	 	 	 	$	198.0	 	 	 	
Interest Rate Spread	 	 	 	 	 	2.89	%	 	 	 	 	3.06	%	
Net Interest Margin	 	 	 	 	 	3.02	%	 	 	 	 	3.20	%	
Noninterest-Bearing Demand Deposits	 	2,940.9	 	 	 	 	 	2,487.0	 	 	 	 	 	
Other Liabilities	 	264.9	 	 	 	 	 	255.5	 	 	 	 	 	
Shareholders’ Equity	 	1,016.4	 	 	 	 	 	1,017.8	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	13,715.9	 	 	 	 	 	$	12,966.4	 	 	 	 	 	

(1)        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.
 
(2)        Comprised of other consumer revolving credit, installment, and consumer lease financing.
 
(3)        Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $4,551,000 and $778,000 for the six months ended June 30, 2012 and 2011, respectively.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Analysis of Change in Net Interest Income - Taxable Equivalent Basis	 	Table 8a	
 
 	 	Three Months Ended June 30, 2012	 	
 	 	Compared to March 31, 2012	 	
(dollars in millions)	 	Volume (1)	 	Rate (1)	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	$	(0.2	)	$	(0.1	)	$	(0.3	)	
Held-to-Maturity	 	0.4	 	(1.7	)	(1.3	)	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	(0.2	)	(0.2	)	(0.4	)	
Commercial Mortgage	 	0.1	 	(0.2	)	(0.1	)	
Construction	 	—	 	(0.1	)	(0.1	)	
Residential Mortgage	 	1.3	 	(1.1	)	0.2	 	
Home Equity	 	(0.1	)	(0.1	)	(0.2	)	
Automobile	 	—	 	(0.1	)	(0.1	)	
Other (2)	 	(0.1	)	—	 	(0.1	)	
Total Loans and Leases	 	1.0	 	(1.8	)	(0.8	)	
Total Change in Interest Income	 	1.2	 	(3.6	)	(2.4	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Savings	 	—	 	(0.2	)	(0.2	)	
Time	 	—	 	(0.1	)	(0.1	)	
Total Interest-Bearing Deposits	 	—	 	(0.3	)	(0.3	)	
Securities Sold Under Agreements to Repurchase	 	(0.4	)	0.4	 	—	 	
Total Change in Interest Expense	 	(0.4	)	0.1	 	(0.3	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	1.6	 	$	(3.7	)	$	(2.1	)	

(1)        The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
 
(2)        Comprised of other consumer revolving credit, installment, and consumer lease financing.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Analysis of Change in Net Interest Income - Taxable Equivalent Basis	 	Table 8b	
 
 	 	Three Months Ended June 30, 2012	 	
 	 	Compared to June 30, 2011	 	
(dollars in millions)	 	Volume (1)	 	Rate (1)	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	(0.2	)	$	—	 	$	(0.2	)	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	(3.7	)	(0.8	)	(4.5	)	
Held-to-Maturity	 	9.8	 	(5.3	)	4.5	 	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	0.1	 	(0.2	)	(0.1	)	
Commercial Mortgage	 	0.7	 	(1.1	)	(0.4	)	
Construction	 	0.3	 	—	 	0.3	 	
Commercial Lease Financing	 	(0.3	)	(0.3	)	(0.6	)	
Residential Mortgage	 	3.2	 	(3.0	)	0.2	 	
Home Equity	 	(0.2	)	(0.9	)	(1.1	)	
Automobile	 	—	 	(0.4	)	(0.4	)	
Other (2)	 	0.4	 	0.2	 	0.6	 	
Total Loans and Leases	 	4.2	 	(5.7	)	(1.5	)	
Total Change in Interest Income	 	10.1	 	(11.8	)	(1.7	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	—	 	(0.1	)	(0.1	)	
Savings	 	(0.1	)	(0.7	)	(0.8	)	
Time	 	0.6	 	(1.3	)	(0.7	)	
Total Interest-Bearing Deposits	 	0.5	 	(2.1	)	(1.6	)	
Securities Sold Under Agreements to Repurchase	 	(0.2	)	0.1	 	(0.1	)	
Total Change in Interest Expense	 	0.3	 	(2.0	)	(1.7	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	9.8	 	$	(9.8	)	$	—	 	

(1)        The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
 
(2)        Comprised of other consumer revolving credit, installment, and consumer lease financing.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Analysis of Change in Net Interest Income - Taxable Equivalent Basis	 	Table 8c	
 
 	 	Six Months Ended June 30, 2012	 	
 	 	Compared to June 30, 2011	 	
(dollars in millions)	 	Volume (1)	 	Rate (1)	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	(0.3	)	(0.1	)	(0.4	)	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	(16.7	)	(6.2	)	(22.9	)	
Held-to-Maturity	 	29.6	 	(6.3	)	23.3	 	
Loans Held for Sale	 	0.1	 	—	 	0.1	 	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	0.5	 	(0.3	)	0.2	 	
Commercial Mortgage	 	1.8	 	(2.0	)	(0.2	)	
Construction	 	0.6	 	—	 	0.6	 	
Commercial Lease Financing	 	(0.5	)	(0.7	)	(1.2	)	
Residential Mortgage	 	5.4	 	(6.0	)	(0.6	)	
Home Equity	 	(0.4	)	(1.8	)	(2.2	)	
Automobile	 	(0.2	)	(0.8	)	(1.0	)	
Other (2)	 	0.6	 	0.5	 	1.1	 	
Total Loans and Leases	 	7.8	 	(11.1	)	(3.3	)	
Total Change in Interest Income	 	20.5	 	(23.7	)	(3.2	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	—	 	(0.2	)	(0.2	)	
Savings	 	(0.1	)	(1.6	)	(1.7	)	
Time	 	1.1	 	(2.5	)	(1.4	)	
Total Interest-Bearing Deposits	 	1.0	 	(4.3	)	(3.3	)	
Securities Sold Under Agreements to Repurchase	 	0.5	 	(0.3	)	0.2	 	
Long-Term Debt	 	(0.1	)	0.1	 	—	 	
Total Change in Interest Expense	 	1.4	 	(4.5	)	(3.1	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	19.1	 	(19.2	)	(0.1	)	

(1)        The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
 
(2)        Comprised of other consumer revolving credit, installment, and consumer lease financing.

 
Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits	Table 9	
 
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	2012	 	2011	 	
Salaries	 	$	27,831	 	$	28,687	 	$	29,142	 	$	56,518	 	$	58,217	 	
Incentive Compensation	 	4,132	 	4,054	 	4,243	 	8,186	 	7,709	 	
Share-Based Compensation and Cash Grants for the Purchase of Company Stock	 	1,758	 	1,685	 	2,483	 	3,443	 	3,158	 	
Commission Expense	 	1,754	 	1,536	 	1,553	 	3,290	 	3,216	 	
Retirement and Other Benefits	 	3,481	 	4,390	 	3,804	 	7,871	 	8,766	 	
Payroll Taxes	 	2,437	 	3,818	 	2,335	 	6,255	 	6,374	 	
Medical, Dental, and Life Insurance	 	2,239	 	2,437	 	2,438	 	4,676	 	4,661	 	
Separation Expense	 	405	 	417	 	802	 	822	 	1,481	 	
Total Salaries and Benefits	 	$	44,037	 	$	47,024	 	$	46,800	 	$	91,061	 	$	93,582	 	

 
Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances	Table 10	
 
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	2011	 	2011	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	781,688	 	$	788,718	 	$	817,170	 	$	790,294	 	$	815,912	 	
Commercial Mortgage	 	961,984	 	948,196	 	938,250	 	922,075	 	872,283	 	
Construction	 	97,668	 	110,184	 	98,669	 	69,635	 	81,432	 	
Lease Financing	 	281,020	 	285,860	 	311,928	 	312,159	 	316,776	 	
Total Commercial	 	2,122,360	 	2,132,958	 	2,166,017	 	2,094,163	 	2,086,403	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	2,401,331	 	2,319,485	 	2,215,892	 	2,130,589	 	2,130,335	 	
Home Equity	 	766,839	 	773,643	 	780,691	 	775,105	 	783,582	 	
Automobile	 	194,339	 	193,851	 	192,506	 	191,497	 	191,739	 	
Other (1)	 	186,614	 	178,995	 	183,198	 	157,118	 	159,414	 	
Total Consumer	 	3,549,123	 	3,465,974	 	3,372,287	 	3,254,309	 	3,265,070	 	
Total Loans and Leases	 	$	5,671,483	 	$	5,598,932	 	$	5,538,304	 	$	5,348,472	 	$	5,351,473	 	
 
Higher Risk Loans Outstanding
 
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	2011	 	2011	 	
Residential Home Building (2)	 	$	8,777	 	$	13,148	 	$	13,475	 	$	15,379	 	$	16,186	 	
Residential Land Loans (3)	 	16,703	 	17,602	 	18,163	 	18,305	 	19,960	 	
Home Equity Loans (4)	 	22,029	 	21,359	 	21,413	 	22,321	 	21,778	 	
Air Transportation (5)	 	27,633	 	27,548	 	36,144	 	36,511	 	36,961	 	
Total Higher Risk Loans	 	$	75,142	 	$	79,657	 	$	89,195	 	$	92,516	 	$	94,885	 	

(1)	Comprised of other revolving credit, installment, and lease financing.	
 	 	
(2)	Residential home building loans were $48.6 million as of June 30, 2012. Higher risk loans within this segment are defined as those loans with a well-defined weakness or weaknesses that jeopardizes the orderly repayment of the loan.	
 	 	
(3)	We consider all of our residential land loans, which are consumer loans secured by unimproved lots, to be of higher risk due to the volatility in the value of the underlying collateral.	
 	 	
(4)	Higher risk home equity loans are defined as those loans originated in 2005 or later, with current monitoring credit scores below 600, and with original loan-to-value ratios greater than 70%.	
 	 	
(5)	We consider all of our air transportation leases to be of higher risk due to the weak financial profile of the industry.	
 
Deposits
 
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	2011	 	2011	 	
Consumer	 	$	5,360,325	 	$	5,377,804	 	$	5,241,827	 	$	5,137,548	 	$	5,073,101	 	
Commercial	 	4,403,095	 	4,307,931	 	4,320,712	 	4,275,915	 	4,165,435	 	
Public and Other	 	1,784,573	 	935,435	 	1,030,084	 	595,550	 	740,498	 	
Total Deposits	 	$	11,547,993	 	$	10,621,170	 	$	10,592,623	 	$	10,009,013	 	$	9,979,034	 	

 
Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More	Table 11	
 
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	2011	 	2011	 	
Non-Performing Assets	 	 	 	 	 	 	 	 	 	 	 	
Non-Accrual Loans and Leases	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	5,778	 	$	5,852	 	$	6,243	 	$	6,593	 	$	1,839	 	
Commercial Mortgage	 	2,737	 	2,113	 	2,140	 	2,188	 	3,290	 	
Construction	 	1,182	 	1,482	 	2,080	 	—	 	288	 	
Lease Financing	 	—	 	4	 	5	 	6	 	8	 	
Total Commercial	 	9,697	 	9,451	 	10,468	 	8,787	 	5,425	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	26,803	 	26,356	 	25,256	 	23,779	 	23,970	 	
Home Equity	 	2,425	 	2,069	 	2,024	 	1,863	 	2,155	 	
Other (1)	 	—	 	—	 	—	 	—	 	16	 	
Total Consumer	 	29,228	 	28,425	 	27,280	 	25,642	 	26,141	 	
Total Non-Accrual Loans and Leases	 	38,925	 	37,876	 	37,748	 	34,429	 	31,566	 	
Foreclosed Real Estate	 	2,569	 	3,530	 	3,042	 	3,341	 	2,590	 	
Total Non-Performing Assets	 	$	41,494	 	$	41,406	 	$	40,790	 	$	37,770	 	$	34,156	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Accruing Loans and Leases Past Due 90 Days or More  	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	1	 	$	2	 	$	1	 	$	—	 	$	—	 	
Total Commercial	 	1	 	2	 	1	 	—	 	—	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	4,229	 	6,590	 	6,422	 	7,664	 	5,854	 	
Home Equity	 	2,445	 	2,829	 	2,194	 	2,639	 	1,147	 	
Automobile	 	98	 	124	 	170	 	138	 	167	 	
Other (1)	 	395	 	543	 	435	 	414	 	604	 	
Total Consumer	 	7,167	 	10,086	 	9,221	 	10,855	 	7,772	 	
Total Accruing Loans and Leases Past Due 90 Days or More	 	$	7,168	 	$	10,088	 	$	9,222	 	$	10,855	 	$	7,772	 	
Restructured Loans on Accrual Status and Not Past Due 90 Days or More	 	$	31,124	 	$	29,539	 	$	33,703	 	$	33,140	 	$	28,193	 	
Total Loans and Leases	 	$	5,671,483	 	$	5,598,932	 	$	5,538,304	 	$	5,348,472	 	$	5,351,473	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	 	0.69	%	0.68	%	0.68	%	0.64	%	0.59	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate	 	0.73	%	0.74	%	0.74	%	0.71	%	0.64	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate	 	0.51	%	0.53	%	0.56	%	0.52	%	0.34	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate	 	0.87	%	0.87	%	0.85	%	0.82	%	0.83	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases and Foreclosed Real Estate	 	0.86	%	0.92	%	0.90	%	0.91	%	0.78	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Quarter to Quarter Changes in Non-Performing Assets	 	 	 	 	 	 	 	 	 	 	 	
Balance at Beginning of Quarter	 	$	41,406	 	$	40,790	 	$	37,770	 	$	34,156	 	$	34,592	 	
Additions	 	7,574	 	5,334	 	8,653	 	8,552	 	6,079	 	
Reductions	 	 	 	 	 	 	 	 	 	 	 	
Payments	 	(2,942	)	(2,524	)	(1,173	)	(3,237	)	(2,363	)	
Return to Accrual Status	 	(2,085	)	(535	)	(2,421	)	(401	)	(3,226	)	
Sales of Foreclosed Real Estate	 	(2,247	)	(1,049	)	(1,320	)	(157	)	(497	)	
Charge-offs/Write-downs	 	(212	)	(610	)	(719	)	(1,143	)	(429	)	
Total Reductions	 	(7,486	)	(4,718	)	(5,633	)	(4,938	)	(6,515	)	
Balance at End of Quarter	 	$	41,494	 	$	41,406	 	$	40,790	 	$	37,770	 	$	34,156	 	

(1) Comprised of other revolving credit, installment, and lease financing.

 
Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses	Table 12	
 
 	 	Three Months Ended	 	Six Months Ended	 	
 	 	June 30,	 	March 31,	 	June 30,	 	June 30,	 	June 30,	 	
(dollars in thousands)	 	2012	 	2012	 	2011	 	2012	 	2011	 	
Balance at Beginning of Period	 	$	141,025	 	$	144,025	 	$	152,777	 	$	144,025	 	$	152,777	 	
Loans and Leases Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(1,078	)	(1,431	)	(1,507	)	(2,509	)	(3,164	)	
Construction	 	—	 	(330	)	—	 	(330	)	—	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	(1,369	)	(1,580	)	(1,977	)	(2,949	)	(3,728	)	
Home Equity	 	(1,657	)	(2,441	)	(3,252	)	(4,098	)	(4,611	)	
Automobile	 	(438	)	(526	)	(797	)	(964	)	(1,826	)	
Other (1)	 	(1,394	)	(1,451	)	(1,488	)	(2,845	)	(3,052	)	
Total Loans and Leases Charged-Off	 	(5,936	)	(7,759	)	(9,021	)	(13,695	)	(16,381	)	
Recoveries on Loans and Leases Previously Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	524	 	1,933	 	399	 	2,457	 	971	 	
Commercial Mortgage	 	10	 	24	 	—	 	34	 	—	 	
Lease Financing	 	11	 	72	 	44	 	83	 	94	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	376	 	666	 	622	 	1,042	 	881	 	
Home Equity	 	165	 	570	 	750	 	735	 	1,089	 	
Automobile	 	482	 	538	 	652	 	1,020	 	1,301	 	
Other (1)	 	577	 	605	 	572	 	1,182	 	1,372	 	
Total Recoveries on Loans and Leases Previously Charged-Off	 	2,145	 	4,408	 	3,039	 	6,553	 	5,708	 	
Net Loans and Leases Charged-Off	 	(3,791	)	(3,351	)	(5,982	)	(7,142	)	(10,673	)	
Provision for Credit Losses	 	628	 	351	 	3,600	 	979	 	8,291	 	
Balance at End of Period(2)	 	$	137,862	 	$	141,025	 	$	150,395	 	$	137,862	 	$	150,395	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Components	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	132,443	 	$	135,606	 	$	144,976	 	$	132,443	 	$	144,976	 	
Reserve for Unfunded Commitments	 	5,419	 	5,419	 	5,419	 	5,419	 	5,419	 	
Total Reserve for Credit Losses	 	$	137,862	 	$	141,025	 	$	150,395	 	$	137,862	 	$	150,395	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases Outstanding	 	$	5,641,588	 	$	5,563,358	 	$	5,326,123	 	$	5,602,473	 	$	5,318,993	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)	 	0.27	%	0.24	%	0.45	%	0.26	%	0.40	%	
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding	 	2.34	%	2.42	%	2.71	%	2.34	%	2.71	%	

(1)	Comprised of other revolving credit, installment, and lease financing.	
 	 	
(2)	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 Segments Selected Financial Information	Table 13a	
 
 	 	Retail	 	Commercial	 	Investment	 	Treasury	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	and Other	 	Total	 	
Three Months Ended June 30, 2012	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	38,680	 	$	30,817	 	$	3,585	 	$	22,299	 	$	95,381	 	
Provision for Credit Losses	 	3,334	 	157	 	301	 	(3,164	)	628	 	
Net Interest Income After Provision for Credit Losses	 	35,346	 	30,660	 	3,284	 	25,463	 	94,753	 	
Noninterest Income	 	21,389	 	8,552	 	15,058	 	1,849	 	46,848	 	
Noninterest Expense	 	(43,797	)	(21,597	)	(13,875	)	(1,478	)	(80,747	)	
Income Before Provision for Income Taxes	 	12,938	 	17,615	 	4,467	 	25,834	 	60,854	 	
Provision for Income Taxes	 	(4,787	)	(6,035	)	(1,653	)	(7,632	)	(20,107	)	
Net Income	 	8,151	 	11,580	 	2,814	 	18,202	 	40,747	 	
Total Assets as of June 30, 2012	 	$	3,246,917	 	$	2,289,516	 	$	287,669	 	$	8,091,524	 	$	13,915,626	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended June 30, 2011(1)	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	43,890	 	$	34,686	 	$	3,792	 	$	15,131	 	$	97,499	 	
Provision for Credit Losses	 	5,585	 	397	 	—	 	(2,382	)	3,600	 	
Net Interest Income After Provision for Credit Losses	 	38,305	 	34,289	 	3,792	 	17,513	 	93,899	 	
Noninterest Income	 	21,697	 	9,741	 	15,234	 	2,791	 	49,463	 	
Noninterest Expense	 	(52,268	)	(24,236	)	(15,043	)	(2,227	)	(93,774	)	
Income Before Provision for Income Taxes	 	7,734	 	19,794	 	3,983	 	18,077	 	49,588	 	
Provision for Income Taxes	 	(2,861	)	(6,946	)	(1,474	)	(3,159	)	(14,440	)	
Net Income	 	4,873	 	12,848	 	2,509	 	14,918	 	35,148	 	
Total Assets as of June 30, 2011	 	$	3,058,041	 	$	2,266,089	 	$	221,347	 	$	7,615,727	 	$	13,161,204	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	
Business Segments Selected Financial Information	Table 13b	
 
 	 	Retail	 	Commercial	 	Investment	 	Treasury	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	and Other	 	Total	 	
Six Months Ended June 30, 2012	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	78,649	 	$	62,259	 	$	7,131	 	$	45,290	 	$	193,329	 	
Provision for Credit Losses	 	7,364	 	(511	)	290	 	(6,164	)	979	 	
Net Interest Income After Provision for Credit Losses	 	71,285	 	62,770	 	6,841	 	51,454	 	192,350	 	
Noninterest Income	 	40,525	 	20,129	 	29,132	 	5,144	 	94,930	 	
Noninterest Expense	 	(88,304	)	(45,127	)	(29,006	)	(3,517	)	(165,954	)	
Income Before Provision for Income Taxes	 	23,506	 	37,772	 	6,967	 	53,081	 	121,326	 	
Provision for Income Taxes	 	(8,697	)	(9,052	)	(2,578	)	(16,442	)	(36,769	)	
Net Income	 	14,809	 	28,720	 	4,389	 	36,639	 	84,557	 	
Total Assets as of June 30, 2012	 	$	3,246,917	 	$	2,289,516	 	$	287,669	 	$	8,091,524	 	$	13,915,626	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Six Months Ended June 30, 2011(1)	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	88,314	 	$	69,689	 	$	7,655	 	$	31,538	 	$	197,196	 	
Provision for Credit Losses	 	10,628	 	209	 	(140	)	(2,406	)	8,291	 	
Net Interest Income After Provision for Credit Losses	 	77,686	 	69,480	 	7,795	 	33,944	 	188,905	 	
Noninterest Income	 	41,817	 	18,797	 	30,283	 	12,488	 	103,385	 	
Noninterest Expense	 	(96,087	)	(48,738	)	(30,447	)	(4,584	)	(179,856	)	
Income Before Provision for Income Taxes	 	23,416	 	39,539	 	7,631	 	41,848	 	112,434	 	
Provision for Income Taxes	 	(8,664	)	(13,748	)	(2,824	)	(9,690	)	(34,926	)	
Net Income	 	14,752	 	25,791	 	4,807	 	32,158	 	77,508	 	
Total Assets as of June 30, 2011	 	$	3,058,041	 	$	2,266,089	 	$	221,347	 	$	7,615,727	 	$	13,161,204	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	
Selected Quarterly Financial Data	Table 14	
 
 	 	Three Months Ended	 	
 	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	June 30,	 	
(dollars in thousands, except per share amounts)	 	2012	 	2012	 	2011	 	2011	 	2011	 	
Quarterly Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	63,910	 	$	64,691	 	$	64,760	 	$	65,344	 	$	65,542	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	16,988	 	17,713	 	19,107	 	23,097	 	23,490	 	
Held-to-Maturity	 	25,054	 	26,413	 	23,608	 	20,344	 	20,553	 	
Deposits	 	1	 	2	 	2	 	6	 	2	 	
Funds Sold	 	119	 	129	 	120	 	160	 	297	 	
Other	 	281	 	280	 	280	 	279	 	279	 	
Total Interest Income	 	106,353	 	109,228	 	107,877	 	109,230	 	110,163	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	3,219	 	3,473	 	3,736	 	4,561	 	4,792	 	
Securities Sold Under Agreements to Repurchase	 	7,250	 	7,304	 	7,392	 	7,400	 	7,338	 	
Funds Purchased	 	5	 	5	 	5	 	4	 	5	 	
Long-Term Debt	 	498	 	498	 	498	 	499	 	529	 	
Total Interest Expense	 	10,972	 	11,280	 	11,631	 	12,464	 	12,664	 	
Net Interest Income	 	95,381	 	97,948	 	96,246	 	96,766	 	97,499	 	
Provision for Credit Losses	 	628	 	351	 	2,219	 	2,180	 	3,600	 	
Net Interest Income After Provision for Credit Losses	 	94,753	 	97,597	 	94,027	 	94,586	 	93,899	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	11,195	 	10,918	 	11,025	 	10,788	 	11,427	 	
Mortgage Banking	 	7,581	 	5,050	 	3,401	 	5,480	 	2,661	 	
Service Charges on Deposit Accounts	 	9,225	 	9,591	 	9,606	 	9,820	 	9,375	 	
Fees, Exchange, and Other Service Charges	 	12,326	 	12,399	 	12,401	 	16,219	 	16,662	 	
Investment Securities Gains (Losses), Net	 	—	 	(90	)	282	 	—	 	—	 	
Insurance	 	2,399	 	2,278	 	2,312	 	2,664	 	3,210	 	
Other	 	4,122	 	7,936	 	4,380	 	5,892	 	6,128	 	
Total Noninterest Income	 	46,848	 	48,082	 	43,407	 	50,863	 	49,463	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	44,037	 	47,024	 	44,927	 	44,307	 	46,800	 	
Net Occupancy	 	10,058	 	10,516	 	11,253	 	11,113	 	10,476	 	
Net Equipment	 	4,669	 	5,826	 	4,748	 	4,662	 	4,741	 	
Professional Fees	 	2,386	 	2,132	 	1,926	 	2,245	 	2,294	 	
FDIC Insurance	 	2,088	 	2,071	 	2,027	 	2,065	 	2,010	 	
Other	 	17,509	 	17,638	 	19,501	 	19,563	 	27,453	 	
Total Noninterest Expense	 	80,747	 	85,207	 	84,382	 	83,955	 	93,774	 	
Income Before Provision for Income Taxes	 	60,854	 	60,472	 	53,052	 	61,494	 	49,588	 	
Provision for Income Taxes	 	20,107	 	16,662	 	13,823	 	18,188	 	14,440	 	
Net Income	 	$	40,747	 	$	43,810	 	$	39,229	 	$	43,306	 	$	35,148	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Basic Earnings Per Share	 	$	0.90	 	$	0.96	 	$	0.85	 	$	0.93	 	$	0.74	 	
Diluted Earnings Per Share	 	$	0.90	 	$	0.95	 	$	0.85	 	$	0.92	 	$	0.74	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	$	5,671,483	 	$	5,598,932	 	$	5,538,304	 	$	5,348,472	 	$	5,351,473	 	
Total Assets	 	13,915,626	 	13,759,409	 	13,846,391	 	13,304,758	 	13,161,204	 	
Total Deposits	 	11,547,993	 	10,621,170	 	10,592,623	 	10,009,013	 	9,979,034	 	
Total Shareholders’ Equity	 	1,003,825	 	995,897	 	1,002,667	 	1,017,775	 	1,003,450	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.19	%	1.29	%	1.17	%	1.31	%	1.09	%	
Return on Average Shareholders’ Equity	 	16.19	 	17.26	 	15.23	 	16.80	 	13.86	 	
Efficiency Ratio (1)	 	56.77	 	58.35	 	60.42	 	56.87	 	63.81	 	
Net Interest Margin (2)	 	2.98	 	3.06	 	3.04	 	3.09	 	3.16	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	
Hawaii Economic Trends	Table 15	
 
 	 	Five Months Ended	 	Year Ended	 	
($ in millions; jobs in thousands)	 	May 31, 2012	 	December 31, 2011	 	December 31, 2010	 	
Hawaii Economic Trends	 	 	 	 	 	 	 	 	 	 	 	 	 	
State General Fund Revenues (1)	 	$	2,188.6	 	10.6	%	$	4,662.5	 	8.1	%	$	4,314.1	 	7.4	%	
General Excise and Use Tax Revenue (1)	 	$	1,190.7	 	7.3	 	$	2,588.5	 	8.8	 	$	2,379.9	 	3.6	 	
Jobs (2) 	 	597.1	 	1.0	 	592.1	 	0.9	 	586.8	 	(0.8	)	
 
 	 	June 30,	 	March 31,	 	December 31,	 	
(spot rates)	 	2012	 	2012	 	2011	 	2010	 	2009	 	
Unemployment(3)	 	 	 	 	 	 	 	 	 	 	 	
Statewide, seasonally adjusted	 	6.4	%	6.4	%	6.2	%	6.3	%	6.9	%	
 	 	 	 	 	 	 	 	 	 	 	 	
Oahu	 	6.4	 	5.7	 	5.4	 	4.8	 	5.4	 	
Island of Hawaii	 	10.1	 	9.2	 	8.9	 	8.6	 	9.5	 	
Maui	 	7.5	 	7.1	 	7.1	 	7.4	 	8.8	 	
Kauai	 	8.7	 	8.1	 	7.8	 	7.8	 	8.7	 	
 
 	 	June 30,	 	March 31,	 	December 31,	 	
(percentage change, except months of inventory)	 	2012	 	2012	 	2011	 	2010	 	2009	 	
Housing Trends (Single Family Oahu)(4)	 	 	 	 	 	 	 	 	 	 	 	
Median Home Price	 	8.7	%	10.4	%	(3.0	)%	3.1	%	(7.3	)%	
Home Sales Volume (units)	 	0.4	%	(1.3	)%	(2.7	)%	13.4	%	(1.8	)%	
Months of Inventory	 	3.9	 	4.0	 	4.8	 	6.0	 	6.8	 	
 
 	 	Monthly Visitor Arrivals,	 	Percentage Change	 	
(in thousands)	 	Seasonally Adjusted	 	from Previous Month	 	
Tourism(2)	 	 	 	 	 	
 	 	 	 	 	 	
April 30, 2012	 	637.2	 	(4.4	)%	
March 31, 2012	 	666.2	 	5.1	 	
February 29, 2012	 	634.1	 	(2.3	)	
January 31, 2012	 	649.2	 	3.0	 	
December 31, 2011	 	630.4	 	2.7	 	
November 30, 2011	 	613.8	 	1.7	 	
October 31, 2011	 	603.4	 	(1.2	)	
September 30, 2011	 	610.6	 	3.8	 	
August 31, 2011	 	588.4	 	0.9	 	
July 31, 2011	 	582.9	 	1.2	 	
June 30, 2011	 	575.9	 	(0.1	)	
May 31, 2011	 	576.6	 	(0.8	)	
April 30, 2011	 	581.5	 	(0.9	)	
March 31, 2011	 	586.9	 	(2.8	)	
February 28, 2011	 	603.8	 	(0.3	)	
January 31, 2011	 	605.4	 	2.2	 	
December 31, 2010	 	592.6	 	—	 	
November 30, 2010	 	592.9	 	(1.5	)	
October 31, 2010	 	601.7	 	2.5	 	
September 30, 2010	 	587.3	 	1.0	 	
August 31, 2010	 	581.7	 	(2.5	)	
July 31, 2010	 	596.6	 	3.7	 	
June 30, 2010	 	575.0	 	0.2	 	
May 31, 2010	 	573.9	 	0.9	 	
April 30, 2010	 	568.9	 	1.9	 	
March 31, 2010	 	558.1	 	2.7	 	

(1) Source:  Hawaii Department of Business, Economic Development & Tourism.
 
(2) Source:  University of Hawaii Economic Research Organization.  Year-to-date figures.
 
(3) Source:  University of Hawaii Economic Research Organization, State of Hawaii Department of Labor and Industrial Relations.
 
(4) Source:  Honolulu Board of REALTORS.
 
      Note:  Certain prior period seasonally adjusted information has been revised.