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)	 	October 24, 2005	
 
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)	 	(808) 537-8430	

 
 
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 Conditions.
 
On October 24, 2005, Bank of Hawaii Corporation announced its results of operations for the quarter ending September 30, 2005.  The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
 
Item 9.01.                                              Financial Statements and Exhibits
 
(c)                                  Exhibits
 
Exhibit No.	 	 	
 	 	 	
99.1	 	October 24, 2005 Press Release	
 
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.

Date October 26, 2005	BANK OF HAWAII CORPORATION	

 	/s/ Cynthia G. Wyrick	 	
 	Cynthia G. Wyrick	
 	Senior Vice President and	
 	Corporate Secretary	
 
2

Exhibit 99.1

 
Bank of Hawaii Corporation Third Quarter 2005 Financial Results
 
•      Diluted Earnings Per Share $0.85; Net Income $44.8 Million
•      Board of Directors Increases Dividend to $0.37 Per Share
 
FOR IMMEDIATE RELEASE
 
HONOLULU, HI (October 24, 2005) — Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.85 for the third quarter of 2005, an increase from diluted earnings per share of $0.78 in the third quarter of 2004 and a decrease from $0.87 in the second quarter of 2005.  Net income for the third quarter of 2005 was $44.8 million, up $1.8 million from net income of $43.1 million in the third quarter of 2004 and down $1.6 million from net income of $46.4 million in the second quarter of 2005.  Net income for the third quarter of 2005 included a provision for credit losses of $3.0 million ($1.9 million after tax or $0.04 per diluted share).
 
Return on average assets for the third quarter of 2005 was 1.74 percent, compared to 1.77 percent in the third quarter of 2004 and 1.87 percent in the second quarter of 2005 .  Return on  average equity was 24.61 percent for the third quarter of 2005, up from 23.42 percent in the same quarter last year and down from 25.98 percent in the previous quarter.
 
“We are pleased with Bank of Hawaii Corporation’s financial performance for the third quarter of 2005,” said Allan R. Landon, Chairman and CEO.  “We increased revenue, loans and deposits, and maintained reasonable expense levels.  Although we returned to provisioning for credit losses during the quarter, our credit quality and the Hawaii economy remain strong.”
 
For the nine months ended September 30, 2005, net income was $136.8 million, up $9.7 million or 7.6 percent from net income of $127.1 million for the same period last year.  Diluted earnings per share were $2.55 for the first nine months of 2005, an increase from $2.26 for the first nine months of 2004.  Year-to-date results for 2005 include the previously mentioned $3.0 million provision for credit losses compared to a return to income of $3.5 million in the same period last year resulting from the release of a portion of the allowance for loan and lease losses.
 
The return on average assets for the nine months ended September 30, 2005 was 1.83 percent, up from 1.74 percent for the same period in 2004.  The year-to-date return on average equity was 24.72 percent, up from 22.48 percent for the nine months ended September 30, 2004.
 
- more -
 
130 Merchant Street • PO Box 2900 • Honolulu HI 96846-6000 • Fax 808-537-8440 • Website www.boh.com

 
Financial Highlights
 
Net interest income, on a taxable equivalent basis, for the third quarter of 2005 was $102.0 million, up $3.2 million from $98.8 million in the third quarter of 2004 and up $0.9 million from $101.1 million in the second quarter of 2005.  The increase in net interest income was largely due to growth in loans and higher average yields on the investment securities and loan portfolios.  Partially offsetting the positive increase in interest income was an increase in interest expense resulting from selective rate increases on interest-bearing deposits.  An analysis of the change in net interest income from the previous quarter is included in Table 6.
 
The net interest margin was 4.30 percent for the third quarter of 2005, a 9 basis point decrease from 4.39 percent in the prior year quarter and a 6 basis point decrease from 4.36 percent in the second quarter of 2005.  The decrease in the net interest margin compared to the previous quarter was largely due to a higher level of liquidity.  The decrease in the net interest margin compared to the same quarter last year was largely due to the effects of the flattening yield curve.
 
As previously mentioned, the Company recorded a provision for credit losses of $3.0 million in the third quarter of 2005.  Charge-offs during the quarter of $15.3 million included a $10.0 million write-off of a fully reserved aircraft lease and were partially offset by recoveries of $2.3 million. The Company did not recognize a provision for credit losses during the third quarter of 2004 or during the second quarter of 2005.
 
Non-interest income was $55.5 million for the third quarter of 2005, an increase of $2.5 million or 4.6 percent compared to non-interest income of $53.1 million in the third quarter of 2004.  Non-interest income in the third quarters of 2005 and 2004 included gains of $3.4 million and $5.2 million, respectively, on the sale of assets at the end of leveraged leases.  Excluding these items, non-interest income increased $4.3 million or 9.0 percent over the same quarter last year.  Non-interest income increased $4.8 million or 9.6 percent compared to $50.7 million in the second quarter of 2005.
 
Non-interest expense was $84.6 million in the third quarter of 2005, up $0.4 million or 0.5 percent from non-interest expense of $84.2 million in the same quarter last year and up $5.6 million or 7.1 percent from $79.0 million in the second quarter of 2005.  Included in the third quarter of 2005 were previously announced charges of $3.8 million for legal and other expenses related to the mutual fund business.  An analysis of salary and benefit expenses is included in Table 7.
 
The efficiency ratio for the third quarter of 2005 was 53.72 percent, an improvement from 55.45 percent in the same quarter last year and up from 52.07 percent in the previous quarter.
 
The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services Group, and Treasury and Other Corporate.  Results are determined based on the Company’s internal financial management reporting process and organizational structure.  Selected financial information for the business segments is included in Tables 11a and 11b.
 
2

 
Asset Quality
 
Overall asset quality remained strong and stable during the third quarter of 2005.  Non-performing assets were $8.3 million at the end of the third quarter of 2005, a decrease of $2.7 million, or 24.5 percent, compared to non-performing assets of $10.9 million at the end of the previous quarter and a decrease of $7.7 million, or 48.4 percent, compared to $16.0 million at the end of the same quarter last year.  At September 30, 2005 the ratio of non-performing assets to total loans, foreclosed real estate, and other investments was 0.13 percent compared with 0.18 percent at June 30, 2005 and 0.27 percent at September 30, 2004.
 
Non-accrualloans were $7.2 million at September 30, 2005, a reduction of $2.8 million, or 28.1 percent, from $9.9 million at June 30, 2005 and down $8.6 million, or 54.6 percent, from $15.8 million at September 30, 2004.  Non-accrual loans as a percentage of total loans were 0.12 percent at September 30, 2005, down from 0.16 percent at June 30, 2005 and from 0.27 percent at September 30, 2004.
 
Net charge-offs for the third quarter of 2005 were $13.0 million, or 0.84 percent (annualized) of total average loans, including the previously mentioned write-off of an aircraft lease.  Net charge-offs in the previous quarter were $3.7 million, or 0.25 percent (annualized) of total average loans.  In the third quarter of 2004, net charge-offs were $0.3 million, or 0.02 percent (annualized) of total average loans.  Net charge-offs for the first nine months of 2005 were $20.4 million, or 0.45 percent (annualized) of total average loans compared to $0.9 million or 0.02 percent (annualized) of total average loans in the same period last year.  Net charge-offs in the first nine months of 2004 included a $6.0 million recovery of a previously charged-off loan from the divested Asia business.
 
The allowance for loan and lease losses was $91.7 million at September 30, 2005, down from $101.6 million at June 30, 2005 and down from $124.7 million at September 30, 2004. The $9.9 million decrease in the allowance from the previous quarter was primarily due to net charge-offs.  The decrease from the previous year is largely due to net charges-offs, $6.5 million returned to income from releases of the allowance for loan and lease losses during 2004 and $6.8 million reclassified to other liabilities for potential losses related to unfunded commitments to extend credit.  The allowance for unfunded commitments was $4.5 million at September 30, 2005, down from $4.6 million at June 30, 2005.
 
The ratio of the allowance for loan and lease losses to total loans was 1.48 percent at September 30, 2005.  The decrease from the ratio of 1.65 percent at June 30, 2005 was largely due to the previously mentioned write-off of an aircraft lease.  The ratio of the allowance for loan and lease losses to total loans was 2.14 percent at September 30, 2004.  If the allowance for unfunded commitments had been reclassified at September 30, 2004, the ratio would have been 2.03 percent.
 
Credit exsposure to the air transportation industry is summarized in Table 8.
 
Other Financial Highlights
 
Total assets were $10.09 billion at September 30, 2005, up from $10.06 billion at June 30, 2005 and up from $9.59 billion at September 30, 2004.  Total loans and leases were $6.20 billion at September 30, 2005, up from $6.15 billion at June 30, 2005 and up from $5.82 billion at September 30, 2004.
 
3

 
Commercial loan outstandings were $2.20 billion at September 30, 2005, essentially flat with June 30, 2005 and up from $2.02 billion at September 30, 2004.  Strong commercial loan originations and advances during the third quarter of 2005 were offset by payoff activity.  Consumer loan outstandings were $4.00 billion at September 30, 2005, up from $3.95 billion at June 30, 2005 and up from $3.79 billion at September 30, 2004.  Growth in residential mortgage and home equity lending continues to be supported by robust construction activity and the strong Hawaii housing market.
 
Total deposits at September 30, 2005 were $7.76 billion, up from $7.73 billion at June 30, 2005 and up from $7.41 billion at September 30, 2004.  Non-interest-bearing demand and savings accounts balances decreased during the quarter as customers shifted funds to higher rate interest-bearing accounts and time deposits.
 
During the third quarter of 2005, Bank of Hawaii Corporation repurchased 762.7 thousand shares of common stock at a total cost of $38.8 million under its share repurchase program.  The average cost was $50.85 per share repurchased.  From the beginning of the share repurchase program in July 2001 through September 30, 2005, the Company has repurchased a total of 39.4 million shares and returned $1.3 billion to the shareholders at an average cost of $33.03 per share.  From October 1, 2005 through October 21, 2005, the Company repurchased 75.0 thousand shares of common stock at an average cost of $48.66 per share.  Remaining buyback authority under the share repurchase program was $46.6 million at October 21, 2005.
 
The Company’s capital and liquidity remain strong.  At September 30, 2005 the Tier 1 leverage ratio was 6.98 percent compared to 7.14 percent at June 30, 2005 and 7.69 percent at September 30, 2004.
 
The Company’s Board of Directors declared a quarterly cash dividend of $0.37 per share on the Company’s outstanding shares.  The dividend will be payable on December 14, 2005 to shareholders of record at the close of business on November 30, 2005.
 
Financial Outlook
 
Bank of Hawaii Corporation currently estimates net income for the full year of 2005 will be approximately $179 million to $181 million.  The Company performs a quarterly analysis of credit quality to determine the adequacy of the reserve for credit losses.  The results of this analysis determine the timing and amount of the provision for credit losses.
 
Conference Call Information
 
The Company will review its third quarter 2005 financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time).  The presentation will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation’s web site, www.boh.com.  The conference call number is 866-700-7477 in the United States or 617-213-8840 for international callers.  No confirmation code is required to access the call.  A replay will be available for one week beginning Monday, October 24, 2005 by calling 888-286-8010 in the United States or 617-801-6888 for international callers and entering the number 43957291 when prompted.  A replay of the presentation will also be available via the Investor Relations link of the Company’s web site.
 
4

 
Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers and governments in Hawaii, American Samoa and the West Pacific.   The Company’s principal subsidiary, Bank of Hawaii, was founded in 1897 and is the largest independent financial institution in Hawaii.  For more information about Bank of Hawaii Corporation, see the Company’s web site, www.boh.com .
 
Forward-Looking Statements
 
This news release, including the statements under the caption “Financial Outlook,” contains, and other statements made by the Company may contain, forward-looking statements concerning, among other things, the economic and business environment in our service area and elsewhere, growth in the lending portfolio, credit quality, anticipated net income and other financial and business matters in future periods.  Our forward-looking statements are based on numerous assumptions, any of which could prove to be inaccurate and actual results may differ materially from those projected for a variety of reasons, including, but not limited to:
1) unanticipated changes in business and economic conditions, the competitive environment, fiscal and monetary policies, taxing authority interpretations, legislation in Hawaii and the other markets we serve, or the timing and interpretation of accounting standards; 2) changes in our credit quality or risk profile that may increase or decrease the required level of reserve for credit losses; 3) changes in market interest rates that may affect our credit markets and ability to maintain our net interest margin; 4) unpredictable costs and other consequences of legal or regulatory matters involving the Company; 5) changes to the amount and timing of our proposed equity repurchases; 6) real or threatened acts of war or terrorist activity affecting business conditions; and 7) adverse weather, public health and other natural conditions impacting the Company and its customers’ operations.  We do not undertake an obligation to update forward-looking statements to reflect later events or circumstances.
 
# # # #
 
5

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Highlights (Unaudited)	 	Table 1	
 
 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	September 30,	 	
(dollars in thousands except per share amounts)	 	2005	 	2004	 	2005	 	2004	 	
 	 	 	 	 	 	 	 	 	 	
For the Period:	 	 	 	 	 	 	 	 	 	
Interest Income	 	$	129,234	 	$	114,397	 	$	373,497	 	$	337,643	 	
Net Interest Income	 	101,960	 	98,779	 	303,657	 	290,659	 	
Net Income	 	44,829	 	43,067	 	136,780	 	127,098	 	
Basic Earnings Per Share	 	0.87	 	0.82	 	2.62	 	2.40	 	
Diluted Earnings Per Share	 	0.85	 	0.78	 	2.55	 	2.26	 	
Dividends Declared Per Share	 	0.33	 	0.30	 	0.99	 	0.90	 	
 	 	 	 	 	 	 	 	 	 	
Net Income to Average Total Assets (ROA)	 	1.74%	 	1.77%	 	1.83%	 	1.74%	 	
Net Income to Average Shareholders’ Equity (ROE)	 	24.61	 	23.42	 	24.72	 	22.48	 	
Net Interest Margin 1	 	4.30	 	4.39	 	4.36	 	4.29	 	
Efficiency Ratio 2	 	53.72	 	55.45	 	52.90	 	56.40	 	
 	 	 	 	 	 	 	 	 	 	
Average Assets	 	$	10,196,047	 	$	9,668,495	 	$	10,004,968	 	$	9,746,283	 	
Average Loans and Leases	 	6,170,302	 	5,796,350	 	6,087,629	 	5,770,642	 	
Average Deposits	 	7,833,638	 	7,479,776	 	7,756,789	 	7,390,682	 	
Average Shareholders’ Equity	 	722,758	 	731,583	 	739,721	 	755,075	 	
Average Equity to Average Assets	 	7.09%	 	7.57%	 	7.39%	 	7.75%	 	
 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	September 30,	 	
 	 	 	 	 	 	2005	 	2004	 	
At Period End:	 	 	 	 	 	 	 	 	 	
Net Loans	 	 	 	 	 	$	6,110,892	 	$	5,690,924	 	
Total Assets	 	 	 	 	 	10,085,235	 	9,594,809	 	
Deposits	 	 	 	 	 	7,756,586	 	7,413,240	 	
Long-Term Debt	 	 	 	 	 	242,692	 	252,619	 	
Shareholders’ Equity	 	 	 	 	 	696,311	 	756,707	 	
 	 	 	 	 	 	 	 	 	 	
Allowance to Loans and Leases Outstanding	 	 	 	 	 	1.48%	 	2.14%	 	
Dividend Payout Ratio	 	 	 	 	 	37.80	 	37.57	 	
Leverage Ratio	 	 	 	 	 	6.98	 	7.69	 	
 	 	 	 	 	 	 	 	 	 	
Book Value Per Common Share	 	 	 	 	 	$	13.58	 	$	14.27	 	
 	 	 	 	 	 	 	 	 	 	
Employees (FTE)	 	 	 	 	 	2,591	 	2,655	 	
Branches and Offices	 	 	 	 	 	85	 	88	 	
 	 	 	 	 	 	 	 	 	 	
Market Price Per Share of Common Stock for the Quarter Ended:	 	 	 	 	 	 	 	 	 	
 	 	 	 	Closing	 	$	49.22	 	$	47.25	 	
 	 	 	 	High	 	54.44	 	48.07	 	
 	 	 	 	Low	 	47.44	 	43.55	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Income (Unaudited)	 	Table 2	
 
 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands except per share amounts)	 	2005	 	2005	 	20041	 	2005	 	20041	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	94,381	 	$	90,119	 	$	82,079	 	$	270,967	 	$	243,853	 	
Income on Investment Securities - Available for Sale	 	28,482	 	27,987	 	24,543	 	83,788	 	67,134	 	
Income on Investment Securities - Held to Maturity	 	5,109	 	5,527	 	6,370	 	16,461	 	20,057	 	
Deposits	 	57	 	36	 	496	 	116	 	3,373	 	
Funds Sold	 	935	 	165	 	108	 	1,175	 	702	 	
Other	 	270	 	271	 	801	 	990	 	2,524	 	
Total Interest Income	 	129,234	 	124,105	 	114,397	 	373,497	 	337,643	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	15,766	 	13,577	 	8,990	 	40,947	 	26,750	 	
Securities Sold Under Agreements to Repurchase	 	6,796	 	4,562	 	2,085	 	14,683	 	6,233	 	
Funds Purchased	 	901	 	1,151	 	683	 	2,785	 	1,420	 	
Short-Term Borrowings	 	50	 	45	 	15	 	127	 	43	 	
Long-Term Debt	 	3,761	 	3,731	 	3,845	 	11,298	 	12,538	 	
Total Interest Expense	 	27,274	 	23,066	 	15,618	 	69,840	 	46,984	 	
Net Interest Income	 	101,960	 	101,039	 	98,779	 	303,657	 	290,659	 	
Provision for Credit Losses	 	3,000	 	—	 	—	 	3,000	 	(3,500	)	
Net Interest Income After Provision for Credit Losses	 	98,960	 	101,039	 	98,779	 	300,657	 	294,159	 	
Non-Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	14,052	 	14,058	 	12,672	 	42,732	 	39,531	 	
Mortgage Banking	 	2,618	 	2,594	 	1,711	 	7,802	 	6,496	 	
Service Charges on Deposit Accounts	 	10,046	 	9,569	 	9,472	 	29,794	 	28,962	 	
Fees, Exchange, and Other Service Charges	 	15,394	 	15,211	 	13,741	 	44,441	 	41,223	 	
Investment Securities Gains (Losses)	 	8	 	337	 	—	 	345	 	(37	)	
Insurance	 	5,324	 	4,330	 	5,423	 	15,442	 	15,007	 	
Other	 	8,074	 	4,575	 	10,035	 	17,949	 	25,562	 	
Total Non-Interest Income	 	55,516	 	50,674	 	53,054	 	158,505	 	156,744	 	
Non-Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	44,366	 	43,856	 	46,566	 	132,991	 	139,256	 	
Net Occupancy	 	9,896	 	9,189	 	9,812	 	28,630	 	28,741	 	
Net Equipment	 	5,335	 	5,377	 	5,847	 	16,183	 	17,610	 	
Professional Fees	 	5,689	 	2,905	 	3,428	 	11,645	 	10,632	 	
Other	 	19,310	 	17,677	 	18,537	 	55,014	 	56,098	 	
Total Non-Interest Expense	 	84,596	 	79,004	 	84,190	 	244,463	 	252,337	 	
Income Before Income Taxes	 	69,880	 	72,709	 	67,643	 	214,699	 	198,566	 	
Provision for Income Taxes	 	25,051	 	26,280	 	24,576	 	77,919	 	71,468	 	
Net Income	 	$	44,829	 	$	46,429	 	$	43,067	 	$	136,780	 	$	127,098	 	
Basic Earnings Per Share	 	$	0.87	 	$	0.90	 	$	0.82	 	$	2.62	 	$	2.40	 	
Diluted Earnings Per Share	 	$	0.85	 	$	0.87	 	$	0.78	 	$	2.55	 	$	2.26	 	
Dividends Declared Per Share	 	$	0.33	 	$	0.33	 	$	0.30	 	$	0.99	 	$	0.90	 	
Basic Weighted Average Shares	 	51,385,840	 	51,873,772	 	52,390,081	 	52,221,345	 	53,053,770	 	
Diluted Weighted Average Shares	 	52,844,961	 	53,403,781	 	55,472,868	 	53,745,612	 	56,297,277	 	

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

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Statements of Shareholders’ Equity (Unaudited)	 	Table 4	
 
 	 	 	 	 	 	 	 	Accum.	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Other	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Comprehensive	 	 	 	Deferred	 	 	 	 	 	
 	 	 	 	Common	 	Capital	 	Income	 	Retained	 	Stock	 	Treasury	 	Comprehensive	 	
(dollars in thousands)	 	Total	 	Stock	 	Surplus	 	(Loss)	 	Earnings	 	Grants	 	Stock	 	Income	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2004	 	$	814,834	 	$	813	 	$	450,998	 	$	(12,917	)	$	1,282,425	 	$	(8,433	)	$	(898,052	)	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	136,780	 	—	 	—	 	—	 	136,780	 	—	 	—	 	$	136,780	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Unrealized Gains and Losses on Investment Securities	 	(21,780	)	—	 	—	 	(21,780	)	—	 	—	 	—	 	(21,780	)	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	115,000	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common Stock Issued under Stock Plans and Related Tax Benefits (803,278 shares)	 	33,268	 	2	 	12,086	 	—	 	(1,353	)	2,459	 	20,074	 	 	 	
Treasury Stock Purchased (4,478,932 shares)	 	(214,997	)	—	 	—	 	—	 	—	 	—	 	(214,997	)	 	 	
Cash Dividends Paid	 	(51,794	)	—	 	—	 	—	 	(51,794	)	—	 	—	 	 	 	
Balance at September 30, 2005	 	$	696,311	 	$	815	 	$	463,084	 	$	(34,697	)	$	1,366,058	 	$	(5,974	)	$	(1,092,975	)	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2003	 	$	793,132	 	$	807	 	$	391,701	 	$	(5,711	)	$	1,199,077	 	$	(8,309	)	$	(784,433	)	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	127,098	 	—	 	—	 	—	 	127,098	 	—	 	—	 	$	127,098	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Unrealized Gains and Losses on Investment Securities	 	13	 	—	 	—	 	13	 	—	 	—	 	—	 	13	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	127,111	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common Stock Issued under Stock Plans and Related Tax Benefits (2,305,545 shares)	 	71,984	 	6	 	21,995	 	—	 	(434	)	(1,181	)	51,598	 	 	 	
Treasury Stock Purchased (4,209,363 shares)	 	(187,394	)	—	 	—	 	—	 	—	 	—	 	(187,394	)	 	 	
Cash Dividends Paid	 	(48,126	)	—	 	—	 	—	 	(48,126	)	—	 	—	 	 	 	
Balance at September 30, 2004	 	$	756,707	 	$	813	 	$	413,696	 	$	(5,698	)	$	1,277,615	 	$	(9,490	)	$	(920,229	)	 	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Average Balances and Interest Rates - Taxable Equivalent Basis (Unaudited)	 	Table 5	
 
 	 	Three Months Ended	 	Three Months Ended	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30, 2005	 	June 30, 2005	 	September 30, 2004 1	 	September 30, 2005	 	
 	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	Average	 	Income/	 	Yield/	 	
(dollars in millions)	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	Balance	 	Expense	 	Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	6.4	 	$	0.1	 	3.55%	 	$	6.0	 	$	—	 	2.36%	 	$	82.6	 	$	0.5	 	2.39%	 	$	5.8	 	$	0.1	 	2.69%	 	
Funds Sold	 	105.7	 	0.9	 	3.54	 	23.1	 	0.2	 	2.86	 	28.6	 	0.1	 	1.51	 	47.5	 	1.2	 	3.30	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available for Sale	 	2,574.2	 	28.5	 	4.43	 	2,542.5	 	28.0	 	4.41	 	2,325.5	 	24.6	 	4.23	 	2,536.3	 	83.9	 	4.41	 	
Held to Maturity	 	507.5	 	5.1	 	4.03	 	544.1	 	5.5	 	4.06	 	659.0	 	6.3	 	3.87	 	541.8	 	16.5	 	4.05	 	
Loans Held for Sale	 	17.0	 	0.3	 	5.82	 	15.1	 	0.2	 	5.72	 	11.3	 	0.2	 	5.74	 	15.1	 	0.6	 	 	 	
Loans and Leases 2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	984.2	 	15.8	 	6.38	 	945.0	 	14.3	 	6.07	 	815.1	 	10.7	 	5.27	 	946.6	 	43.3	 	6.12	 	
Construction	 	186.4	 	3.0	 	6.35	 	140.9	 	2.1	 	5.91	 	81.1	 	1.0	 	5.01	 	150.7	 	6.7	 	5.97	 	
Commercial Mortgage	 	560.2	 	8.4	 	5.95	 	599.3	 	8.8	 	5.89	 	658.9	 	8.8	 	5.29	 	588.3	 	25.8	 	5.85	 	
Residential Mortgage	 	2,352.3	 	33.7	 	5.73	 	2,343.9	 	33.1	 	5.64	 	2,280.8	 	32.1	 	5.62	 	2,341.0	 	99.3	 	5.65	 	
Other Revolving Credit and Installment	 	742.6	 	15.9	 	8.52	 	739.6	 	15.4	 	8.37	 	705.6	 	15.1	 	8.53	 	739.7	 	46.4	 	8.39	 	
Home Equity	 	758.2	 	12.2	 	6.40	 	719.0	 	10.8	 	6.01	 	583.7	 	7.1	 	4.83	 	718.9	 	32.5	 	6.04	 	
Purchased Home Equity	 	88.7	 	0.6	 	2.71	 	103.3	 	0.8	 	3.06	 	155.2	 	1.7	 	4.29	 	102.8	 	2.4	 	3.15	 	
Lease Financing	 	497.7	 	4.5	 	3.55	 	499.2	 	4.7	 	3.74	 	516.0	 	5.4	 	4.17	 	499.6	 	13.9	 	3.72	 	
Total Loans and Leases	 	6,170.3	 	94.1	 	6.07	 	6,090.2	 	90.0	 	5.91	 	5,796.4	 	81.9	 	5.63	 	6,087.6	 	270.3	 	5.93	 	
Other	 	79.4	 	0.3	 	1.35	 	66.3	 	0.3	 	1.64	 	78.7	 	0.8	 	4.05	 	66.6	 	1.0	 	1.99	 	
Total Earning Assets3	 	9,460.5	 	129.3	 	5.44	 	9,287.3	 	124.2	 	5.35	 	8,982.1	 	114.4	 	5.08	 	9,300.7	 	373.6	 	5.36	 	
Cash and Non-Interest-Bearing Deposits	 	316.1	 	 	 	 	 	305.8	 	 	 	 	 	316.9	 	 	 	 	 	312.5	 	 	 	 	 	
Other Assets	 	419.4	 	 	 	 	 	376.1	 	 	 	 	 	369.5	 	 	 	 	 	391.8	 	 	 	 	 	
Total Assets	 	$	10,196.0	 	 	 	 	 	$	9,969.2	 	 	 	 	 	$	9,668.5	 	 	 	 	 	$	10,005.0	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,730.7	 	2.9	 	0.66	 	$	1,667.3	 	2.4	 	0.58	 	$	1,471.0	 	0.9	 	0.24	 	$	1,672.5	 	6.9	 	0.56	 	
Savings	 	2,890.2	 	5.3	 	0.73	 	2,970.8	 	4.8	 	0.65	 	2,998.4	 	3.2	 	0.43	 	2,944.1	 	14.5	 	0.66	 	
Time	 	1,241.9	 	7.6	 	2.42	 	1,159.0	 	6.4	 	2.20	 	1,078.4	 	4.9	 	1.81	 	1,172.3	 	19.5	 	2.22	 	
Total Interest-Bearing Deposits	 	5,862.8	 	15.8	 	1.07	 	5,797.1	 	13.6	 	0.94	 	5,547.8	 	9.0	 	0.64	 	5,788.9	 	40.9	 	0.95	 	
Short-Term Borrowings	 	953.2	 	7.7	 	3.22	 	822.9	 	5.8	 	2.81	 	816.9	 	2.8	 	1.36	 	828.4	 	17.6	 	 	 	
Long-Term Debt	 	242.7	 	3.8	 	6.19	 	242.7	 	3.7	 	6.16	 	246.8	 	3.8	 	6.22	 	244.7	 	11.3	 	6.16	 	
Total Interest-Bearing Liabilities	 	7,058.7	 	27.3	 	1.53	 	6,862.7	 	23.1	 	1.35	 	6,611.5	 	15.6	 	0.94	 	6,862.0	 	69.8	 	1.36	 	
Net Interest Income	 	 	 	$	102.0	 	 	 	 	 	$	101.1	 	 	 	 	 	$	98.8	 	 	 	 	 	$	303.8	 	 	 	
Interest Rate Spread	 	 	 	 	 	3.91%	 	 	 	 	 	4.00%	 	 	 	 	 	4.14%	 	 	 	 	 	4.00%	 	
Net Interest Margin	 	 	 	 	 	4.30%	 	 	 	 	 	4.36%	 	 	 	 	 	4.39%	 	 	 	 	 	4.36%	 	
Non-Interest-Bearing Demand Deposits	 	1,970.9	 	 	 	 	 	1,950.2	 	 	 	 	 	1,932.0	 	 	 	 	 	1,967.9	 	 	 	 	 	
Other Liabilities	 	443.7	 	 	 	 	 	439.5	 	 	 	 	 	393.4	 	 	 	 	 	435.4	 	 	 	 	 	
Shareholders’ Equity	 	722.7	 	 	 	 	 	716.8	 	 	 	 	 	731.6	 	 	 	 	 	739.7	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	10,196.0	 	 	 	 	 	$	9,969.2	 	 	 	 	 	$	9,668.5	 	 	 	 	 	$	10,005.0	 	 	 	 	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Analysis of Change in Net Interest Income - Taxable Equivalent Basis (Unaudited)	 	Table 6	
 
 	 	Three Months Ended September 30, 2005 Compared to June 30, 2005	 	
(dollars in millions)	 	Volume1	 	Rate1	 	Time1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	—	 	$	0.1	 	$	—	 	$	0.1	 	
Funds Sold	 	0.7	 	—	 	—	 	0.7	 	
Investment Securities	 	 	 	 	 	 	 	 	 	
Available for Sale	 	0.4	 	0.1	 	—	 	0.5	 	
Held to Maturity	 	(0.4	)	—	 	—	 	(0.4	)	
Loans Held for Sale	 	0.1	 	—	 	—	 	0.1	 	
Loans and Leases	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	0.6	 	0.7	 	0.2	 	1.5	 	
Construction	 	0.7	 	0.2	 	—	 	0.9	 	
Commercial Mortgage	 	(0.6	)	0.1	 	0.1	 	(0.4	)	
Residential Mortgage	 	0.1	 	0.5	 	—	 	0.6	 	
Other Revolving Credit and Installment	 	0.1	 	0.2	 	0.2	 	0.5	 	
Home Equity	 	0.6	 	0.7	 	0.1	 	1.4	 	
Purchased Home Equity	 	(0.1	)	(0.1	)	—	 	(0.2	)	
Lease Financing	 	—	 	(0.3	)	0.1	 	(0.2	)	
Total Loans and Leases	 	1.4	 	2.0	 	0.7	 	4.1	 	
Total Change in Interest Income	 	2.2	 	2.2	 	0.7	 	5.1	 	
 	 	 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	
Demand	 	0.1	 	0.4	 	—	 	0.5	 	
Savings	 	(0.2	)	0.6	 	0.1	 	0.5	 	
Time	 	0.5	 	0.6	 	0.1	 	1.2	 	
Total Interest-Bearing Deposits	 	0.4	 	1.6	 	0.2	 	2.2	 	
Short-Term Borrowings	 	1.1	 	0.8	 	—	 	1.9	 	
Long-Term Debt	 	—	 	0.1	 	—	 	0.1	 	
Total Change in Interest Expense	 	1.5	 	2.5	 	0.2	 	4.2	 	
 	 	 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	0.7	 	$	(0.3	)	$	0.5	 	$	0.9	 	

1       The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume, rate, or time for that category.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Salaries and Benefits (Unaudited)	 	Table 7	
 
 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	June 30,	 	September 30,	 	September 30,	 	
(dollars in thousands)	 	2005	 	2005 1	 	20041	 	2005	 	20041	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Salaries	 	$	27,652	 	$	26,758	 	$	27,993	 	$	80,521	 	$	83,307	 	
Incentive Compensation	 	4,385	 	3,725	 	4,383	 	12,078	 	11,459	 	
Stock Based Compensation	 	1,855	 	1,828	 	2,671	 	5,398	 	8,800	 	
Commission Expense	 	1,864	 	2,281	 	1,780	 	6,397	 	5,691	 	
Retirement and Other Benefits	 	4,512	 	4,437	 	4,099	 	13,717	 	12,670	 	
Payroll Taxes	 	2,091	 	2,205	 	2,415	 	7,749	 	8,948	 	
Medical, Dental, and Life Insurance	 	1,805	 	1,823	 	2,064	 	5,859	 	6,304	 	
Separation Expense	 	202	 	799	 	1,161	 	1,272	 	2,077	 	
Total Salaries and Benefits	 	$	44,366	 	$	43,856	 	$	46,566	 	$	132,991	 	$	139,256	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Loan Portfolio Balances (Unaudited)	 	Table 8	
 
 	 	September 30,	 	June 30,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2005	 	20051	 	20041	 	20041	 	
Commercial	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	968,146	 	$	1,000,554	 	$	911,843	 	$	792,400	 	
Commercial Mortgage	 	574,034	 	563,581	 	602,678	 	648,991	 	
Construction	 	190,603	 	165,772	 	122,103	 	104,457	 	
Lease Financing	 	468,378	 	471,600	 	479,100	 	479,063	 	
Total Commercial	 	2,201,161	 	2,201,507	 	2,115,724	 	2,024,911	 	
Consumer	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	2,370,717	 	2,345,483	 	2,324,058	 	2,290,940	 	
Home Equity	 	778,723	 	739,161	 	657,164	 	609,981	 	
Purchased Home Equity	 	81,076	 	93,806	 	122,728	 	143,300	 	
Other Revolving Credit and Installment	 	743,764	 	742,834	 	734,721	 	712,647	 	
Lease Financing	 	27,105	 	28,627	 	32,535	 	33,796	 	
Total Consumer	 	4,001,385	 	3,949,911	 	3,871,206	 	3,790,664	 	
Total Loans and Leases	 	$	6,202,546	 	$	6,151,418	 	$	5,986,930	 	$	5,815,575	 	
 
Air Transportation Credit Exposure 2 (Unaudited)
 
 	 	September 30, 2005	 	Dec. 31, 2004 1	 	Sept. 30, 2004	 	
 	 	 	 	Unused	 	Total	 	Total	 	Total	 	
(dollars in thousands)	 	Outstanding	 	Commitments	 	Exposure	 	Exposure	 	Exposure	 	
United States Regional Passenger Carriers	 	$	41,206	 	$	1,656	 	$	42,862	 	$	54,981	 	$	57,505	 	
United States National Passenger Carriers	 	27,816	 	—	 	27,816	 	37,377	 	37,771	 	
Passenger Carriers Based Outside United States	 	21,573	 	—	 	21,573	 	25,910	 	28,540	 	
Cargo Carriers	 	13,240	 	—	 	13,240	 	13,771	 	13,771	 	
Total Air Transportation	 	$	103,835	 	$	1,656	 	$	105,491	 	$	132,039	 	$	137,587	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Non-Performing Assets and Accruing Loans Past Due 90 Days or More (Unaudited)	 	Table 9	
 
 	 	September 30,	 	June 30,	 	December 31,	 	September 30,	 	
(dollars in thousands)	 	2005	 	2005	 	2004	 	2004	 	
 	 	 	 	 	 	 	 	 	 	
Non-Performing Assets	 	 	 	 	 	 	 	 	 	
Non-Accrual Loans	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	471	 	$	430	 	$	683	 	$	775	 	
Commercial Mortgage	 	1,555	 	1,739	 	2,106	 	5,552	 	
Lease Financing	 	4	 	1,586	 	2,973	 	1,913	 	
Total Commercial	 	2,030	 	3,755	 	5,762	 	8,240	 	
Consumer	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	5,083	 	6,034	 	7,688	 	7,278	 	
Home Equity	 	41	 	156	 	218	 	251	 	
Total Consumer	 	5,124	 	6,190	 	7,906	 	7,529	 	
Total Non-Accrual Loans	 	7,154	 	9,945	 	13,668	 	15,769	 	
Foreclosed Real Estate	 	413	 	292	 	191	 	208	 	
Other Investments	 	683	 	683	 	—	 	—	 	
Total Non-Performing Assets	 	$	8,250	 	$	10,920	 	$	13,859	 	$	15,977	 	
 	 	 	 	 	 	 	 	 	 	
Accruing Loans Past Due 90 Days or More	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	—	 	$	9	 	$	52	 	$	65	 	
Commercial Mortgage	 	—	 	2,213	 	—	 	688	 	
Total Commercial	 	—	 	2,222	 	52	 	753	 	
Consumer	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	1,545	 	1,310	 	387	 	2,588	 	
Purchased Home Equity	 	83	 	—	 	183	 	97	 	
Other Revolving Credit and Installment	 	1,479	 	1,417	 	1,433	 	1,533	 	
Lease Financing	 	51	 	—	 	30	 	32	 	
Total Consumer	 	3,158	 	2,727	 	2,033	 	4,250	 	
Total Accruing Loans Past Due 90 Days or More	 	$	3,158	 	$	4,949	 	$	2,085	 	$	5,003	 	
 	 	 	 	 	 	 	 	 	 	
Total Loans and Leases	 	$	6,202,546	 	$	6,151,418	 	$	5,986,930	 	$	5,815,575	 	
 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Accrual Loans to Total Loans	 	0.12%	 	0.16%	 	0.23%	 	0.27%	 	
 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets to Total Loans, Foreclosed Real Estate and Other Investments	 	0.13%	 	0.18%	 	0.23%	 	0.27%	 	
 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets and Accruing Loans Past Due 90 Days or More to Total Loans	 	0.18%	 	0.26%	 	0.27%	 	0.36%	 	
 	 	 	 	 	 	 	 	 	 	
Quarter to Quarter Changes in Non-Performing Assets	 	 	 	 	 	 	 	 	 	
Balance at Beginning of Quarter	 	$	10,920	 	$	13,365	 	$	15,977	 	$	21,160	 	
Additions	 	919	 	3,088	 	5,164	 	2,094	 	
Reductions	 	 	 	 	 	 	 	 	 	
Payments	 	(1,326	)	(5,097	)	(6,435	)	(1,386	)	
Return to Accrual	 	(2,007	)	(392	)	(456	)	(1,122	)	
Sales of Foreclosed Assets	 	—	 	—	 	(206	)	(682	)	
Charge-offs/Write-downs	 	(256	)	(44	)	(185	)	(88	)	
Transfer to Premises	 	—	 	—	 	—	 	(3,999	)	
Total Reductions	 	(3,589	)	(5,533	)	(7,282	)	(7,277	)	
Balance at End of Quarter	 	$	8,250	 	$	10,920	 	$	13,859	 	$	15,977	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Consolidated Reserve for Credit Losses (Unaudited)	 	Table 10	
 
 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	September 30,	 	September 30,	 	
(dollars in thousands)	 	2005	 	2004	 	2005	 	2004	 	
 	 	 	 	 	 	 	 	 	 	
Balance at Beginning of Period	 	$	106,163	 	$	124,904	 	$	113,596	 	$	129,080	 	
Loans Charged-Off	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	620	 	227	 	1,775	 	3,942	 	
Commercial Mortgage	 	—	 	—	 	—	 	574	 	
Lease Financing	 	10,049	 	—	 	10,049	 	607	 	
Consumer	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	130	 	226	 	512	 	690	 	
Home Equity	 	—	 	11	 	—	 	20	 	
Purchased Home Equity	 	26	 	173	 	723	 	464	 	
Other Revolving Credit and Installment	 	4,488	 	4,268	 	13,617	 	13,487	 	
Lease Financing	 	6	 	45	 	69	 	109	 	
Total Loans Charged-Off	 	15,319	 	4,950	 	26,745	 	19,893	 	
Recoveries on Loans Previously Charged-Off	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	528	 	1,206	 	1,281	 	3,431	 	
Commercial Mortgage	 	146	 	1,093	 	240	 	1,933	 	
Construction	 	—	 	94	 	—	 	529	 	
Lease Financing	 	—	 	2	 	162	 	18	 	
Consumer	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	190	 	207	 	485	 	805	 	
Home Equity	 	4	 	14	 	34	 	154	 	
Purchased Home Equity	 	126	 	51	 	281	 	108	 	
Other Revolving Credit and Installment	 	1,322	 	1,502	 	3,775	 	4,868	 	
Lease Financing	 	7	 	9	 	58	 	80	 	
Foreign	 	—	 	519	 	—	 	7,038	 	
Total Recoveries on Loans Previously Charged-Off	 	2,323	 	4,697	 	6,316	 	18,964	 	
Net Loan Charge-Offs	 	(12,996	)	(253	)	(20,429	)	(929	)	
Provision for Credit Losses	 	3,000	 	—	 	3,000	 	(3,500	)	
Balance at End of Period 1	 	$	96,167	 	$	124,651	 	$	96,167	 	$	124,651	 	
 	 	 	 	 	 	 	 	 	 	
Components	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	91,654	 	$	124,651	 	$	91,654	 	$	124,651	 	
Reserve for Unfunded Commitments2	 	4,513	 	—	 	4,513	 	—	 	
Total Reserve for Credit Losses	 	$	96,167	 	$	124,651	 	$	96,167	 	$	124,651	 	
 	 	 	 	 	 	 	 	 	 	
Average Loans Outstanding	 	$	6,170,302	 	$	5,796,350	 	$	6,087,629	 	$	5,770,642	 	
 	 	 	 	 	 	 	 	 	 	
Ratio of Net Loan Charge-Offs to Average Loans Outstanding (annualized)	 	0.84%	 	0.02%	 	0.45%	 	0.02%	 	
Ratio of Allowance to Loans and Leases Outstanding2	 	1.48%	 	2.14%	 	1.48%	 	2.14%	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Business Segment Selected Financial Information (Unaudited)	 	Table 11a	
 
 	 	 	 	 	 	Investment	 	Treasury	 	 	 	
 	 	Retail	 	Commercial	 	Services	 	and Other	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Group	 	Corporate	 	Total	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended September 30, 2005	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	56,549	 	$	36,017	 	$	3,223	 	$	6,171	 	$	101,960	 	
Provision for Credit Losses	 	2,946	 	10,564	 	—	 	(10,510	)	3,000	 	
Net Interest Income After Provision for Credit Losses	 	53,603	 	25,453	 	3,223	 	16,681	 	98,960	 	
Non-Interest Income	 	25,595	 	13,385	 	14,097	 	2,439	 	55,516	 	
 	 	79,198	 	38,838	 	17,320	 	19,120	 	154,476	 	
Non-Interest Expense	 	(44,517	)	(22,025	)	(15,683	)	(2,371	)	(84,596	)	
Income Before Income Taxes	 	34,681	 	16,813	 	1,637	 	16,749	 	69,880	 	
Provision for Income Taxes	 	(12,832	)	(6,327	)	(606	)	(5,286	)	(25,051	)	
Allocated Net Income	 	21,849	 	10,486	 	1,031	 	11,463	 	44,829	 	
Allowance Funding Value	 	(178	)	(586	)	(5	)	769	 	—	 	
GAAP Provision	 	2,946	 	10,564	 	—	 	(10,510	)	3,000	 	
Economic Provision	 	(3,364	)	(2,410	)	(105	)	(1	)	(5,880	)	
Tax Effect of Adjustments	 	221	 	(2,800	)	41	 	3,604	 	1,066	 	
Income Before Capital Charge	 	21,474	 	15,254	 	962	 	5,325	 	43,015	 	
Capital Charge	 	(5,569	)	(4,645	)	(1,548	)	(8,113	)	(19,875	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	15,905	 	$	10,609	 	$	(586	)	$	(2,788	)	$	23,140	 	
 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	42%	 	36%	 	7%	 	16%	 	25%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets at September 30, 2005	 	$	3,829,656	 	$	2,538,084	 	$	184,757	 	$	3,532,738	 	$	10,085,235	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Three Months Ended September 30, 2004 1	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	51,329	 	$	33,967	 	$	2,889	 	$	10,594	 	$	98,779	 	
Provision for Credit Losses	 	2,121	 	(847	)	(1	)	(1,273	)	—	 	
Net Interest Income After Provision for Credit Losses	 	49,208	 	34,814	 	2,890	 	11,867	 	98,779	 	
Non-Interest Income	 	22,430	 	15,350	 	12,812	 	2,462	 	53,054	 	
 	 	71,638	 	50,164	 	15,702	 	14,329	 	151,833	 	
Non-Interest Expense	 	(43,605	)	(23,019	)	(13,632	)	(3,934	)	(84,190	)	
Income Before Income Taxes	 	28,033	 	27,145	 	2,070	 	10,395	 	67,643	 	
Provision for Income Taxes	 	(10,372	)	(10,069	)	(766	)	(3,369	)	(24,576	)	
Allocated Net Income	 	17,661	 	17,076	 	1,304	 	7,026	 	43,067	 	
Allowance Funding Value	 	(166	)	(621	)	(6	)	793	 	—	 	
GAAP Provision	 	2,121	 	(847	)	(1	)	(1,273	)	—	 	
Economic Provision	 	(3,584	)	(2,467	)	(86	)	(1	)	(6,138	)	
Tax Effect of Adjustments	 	602	 	1,456	 	34	 	179	 	2,271	 	
Income Before Capital Charge	 	16,634	 	14,597	 	1,245	 	6,724	 	39,200	 	
Capital Charge	 	(5,441	)	(4,824	)	(1,344	)	(8,515	)	(20,124	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	11,193	 	$	9,773	 	$	(99	)	$	(1,791	)	$	19,076	 	
 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	33%	 	33%	 	10%	 	20%	 	23%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets at September 30, 2004	 	$	3,711,048	 	$	2,295,901	 	$	124,943	 	$	3,462,917	 	$	9,594,809	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Business Segment Selected Financial Information (Unaudited)	 	Table 11b	
 
 	 	 	 	 	 	Investment	 	Treasury	 	 	 	
 	 	Retail	 	Commercial	 	Services	 	and Other	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Group	 	Corporate	 	Total	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Nine Months Ended September 30, 2005	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	163,111	 	$	106,105	 	$	9,334	 	$	25,107	 	$	303,657	 	
Provision for Credit Losses	 	9,962	 	11,216	 	(1	)	(18,177	)	3,000	 	
Net Interest Income After Provision for Credit Losses	 	153,149	 	94,889	 	9,335	 	43,284	 	300,657	 	
Non-Interest Income	 	74,917	 	33,651	 	42,952	 	6,985	 	158,505	 	
 	 	228,066	 	128,540	 	52,287	 	50,269	 	459,162	 	
Non-Interest Expense	 	(130,135	)	(65,604	)	(42,594	)	(6,130	)	(244,463	)	
Income Before Income Taxes	 	97,931	 	62,936	 	9,693	 	44,139	 	214,699	 	
Provision for Income Taxes	 	(36,235	)	(23,326	)	(3,586	)	(14,772	)	(77,919	)	
Allocated Net Income	 	61,696	 	39,610	 	6,107	 	29,367	 	136,780	 	
Allowance Funding Value	 	(509	)	(1,788	)	(17	)	2,314	 	—	 	
GAAP Provision	 	9,962	 	11,216	 	(1	)	(18,177	)	3,000	 	
Economic Provision	 	(10,304	)	(7,300	)	(298	)	(3	)	(17,905	)	
Tax Effect of Adjustments	 	315	 	(787	)	117	 	5,871	 	5,516	 	
Income Before Capital Charge	 	61,160	 	40,951	 	5,908	 	19,372	 	127,391	 	
Capital Charge	 	(16,449	)	(13,842	)	(4,317	)	(26,436	)	(61,044	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	44,711	 	$	27,109	 	$	1,591	 	$	(7,064	)	$	66,347	 	
 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	41%	 	33%	 	15%	 	16%	 	25%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets at September 30, 2005	 	$	3,829,656	 	$	2,538,084	 	$	184,757	 	$	3,532,738	 	$	10,085,235	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Nine Months Ended September 30, 2004 1	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	151,010	 	$	101,569	 	$	8,533	 	$	29,547	 	$	290,659	 	
Provision for Credit Losses	 	7,455	 	1,630	 	47	 	(12,632	)	(3,500	)	
Net Interest Income After Provision for Credit Losses	 	143,555	 	99,939	 	8,486	 	42,179	 	294,159	 	
Non-Interest Income	 	67,833	 	37,923	 	40,238	 	10,750	 	156,744	 	
 	 	211,388	 	137,862	 	48,724	 	52,929	 	450,903	 	
Non-Interest Expense	 	(131,382	)	(69,092	)	(39,888	)	(11,975	)	(252,337	)	
Income Before Income Taxes	 	80,006	 	68,770	 	8,836	 	40,954	 	198,566	 	
Provision for Income Taxes	 	(29,602	)	(25,450	)	(3,269	)	(13,147	)	(71,468	)	
Allocated Net Income	 	50,404	 	43,320	 	5,567	 	27,807	 	127,098	 	
Allowance Funding Value	 	(442	)	(2,045	)	(20	)	2,507	 	—	 	
GAAP Provision	 	7,455	 	1,630	 	47	 	(12,632	)	(3,500	)	
Economic Provision	 	(10,489	)	(8,065	)	(279	)	(6	)	(18,839	)	
Tax Effect of Adjustments	 	1,286	 	3,138	 	93	 	3,749	 	8,266	 	
Income Before Capital Charge	 	48,214	 	37,978	 	5,408	 	21,425	 	113,025	 	
Capital Charge	 	(16,696	)	(15,218	)	(3,934	)	(26,465	)	(62,313	)	
Net Income (Loss) After Capital Charge (NIACC)	 	$	31,518	 	$	22,760	 	$	1,474	 	$	(5,040	)	$	50,712	 	
 	 	 	 	 	 	 	 	 	 	 	 	
RAROC (ROE for the Company)	 	32%	 	27%	 	15%	 	24%	 	22%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets at September 30, 2004	 	$	3,711,048	 	$	2,295,901	 	$	124,943	 	$	3,462,917	 	$	9,594,809	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
Quarterly Summary of Selected Consolidated Financial Data (Unaudited)	 	Table 12	
 
 	 	Three Months Ended	 	
 	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	September 30,	 	
(dollars in thousands except per share amounts)	 	2005	 	2005	 	2005	 	2004	 	2004 1	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Quarterly Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	94,381	 	$	90,119	 	$	86,467	 	$	84,100	 	$	82,079	 	
Income on Investment Securities - Available for Sale	 	28,482	 	27,987	 	27,319	 	26,394	 	24,543	 	
Income on Investment Securities - Held to Maturity	 	5,109	 	5,527	 	5,825	 	6,147	 	6,370	 	
Deposits	 	57	 	36	 	23	 	107	 	496	 	
Funds Sold	 	935	 	165	 	75	 	356	 	108	 	
Other	 	270	 	271	 	449	 	267	 	801	 	
Total Interest Income	 	129,234	 	124,105	 	120,158	 	117,371	 	114,397	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	15,766	 	13,577	 	11,604	 	9,993	 	8,990	 	
Securities Sold Under Agreements to Repurchase	 	6,796	 	4,562	 	3,325	 	3,120	 	2,085	 	
Funds Purchased	 	901	 	1,151	 	733	 	395	 	683	 	
Short-Term Borrowings	 	50	 	45	 	32	 	39	 	15	 	
Long-Term Debt	 	3,761	 	3,731	 	3,806	 	3,893	 	3,845	 	
Total Interest Expense	 	27,274	 	23,066	 	19,500	 	17,440	 	15,618	 	
Net Interest Income	 	101,960	 	101,039	 	100,658	 	99,931	 	98,779	 	
Provision for Credit Losses	 	3,000	 	—	 	—	 	(6,500	)	—	 	
Net Interest Income After Provision for Credit Losses	 	98,960	 	101,039	 	100,658	 	106,431	 	98,779	 	
Non-Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	14,052	 	14,058	 	14,622	 	13,934	 	12,672	 	
Mortgage Banking	 	2,618	 	2,594	 	2,590	 	1,516	 	1,711	 	
Service Charges on Deposit Accounts	 	10,046	 	9,569	 	10,179	 	10,155	 	9,472	 	
Fees, Exchange, and Other Service Charges	 	15,394	 	15,211	 	13,836	 	13,684	 	13,741	 	
Investment Securities Gains (Losses)	 	8	 	337	 	—	 	(757	)	—	 	
Insurance	 	5,324	 	4,330	 	5,788	 	4,234	 	5,423	 	
Other	 	8,074	 	4,575	 	5,300	 	5,584	 	10,035	 	
Total Non-Interest Income	 	55,516	 	50,674	 	52,315	 	48,350	 	53,054	 	
Non-Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	44,366	 	43,856	 	44,769	 	45,043	 	46,566	 	
Net Occupancy	 	9,896	 	9,189	 	9,545	 	9,606	 	9,812	 	
Net Equipment	 	5,335	 	5,377	 	5,471	 	6,316	 	5,847	 	
Professional Fees	 	5,689	 	2,905	 	3,051	 	3,580	 	3,428	 	
Other	 	19,310	 	17,677	 	18,027	 	17,558	 	18,537	 	
Total Non-Interest Expense	 	84,596	 	79,004	 	80,863	 	82,103	 	84,190	 	
Income Before Income Taxes	 	69,880	 	72,709	 	72,110	 	72,678	 	67,643	 	
Provision for Income Taxes	 	25,051	 	26,280	 	26,588	 	26,437	 	24,576	 	
Net Income	 	$	44,829	 	$	46,429	 	$	45,522	 	$	46,241	 	$	43,067	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Basic Earnings Per Share	 	$	0.87	 	$	0.90	 	$	0.85	 	$	0.86	 	$	0.82	 	
Diluted Earnings Per Share	 	$	0.85	 	$	0.87	 	$	0.83	 	$	0.82	 	$	0.78	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Total Assets	 	$	10,085,235	 	$	10,059,690	 	$	9,908,030	 	$	9,766,191	 	$	9,594,809	 	
Net Loans	 	6,110,892	 	6,049,831	 	5,910,784	 	5,880,134	 	5,690,924	 	
Total Deposits	 	7,756,586	 	7,726,758	 	7,760,662	 	7,564,667	 	7,413,240	 	
Total Shareholders’ Equity	 	696,311	 	712,169	 	716,656	 	814,834	 	756,707	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Net Income to Average Total Assets (ROA)	 	1.74%	 	1.87%	 	1.88%	 	1.89%	 	1.77%	 	
Net Income to Average Shareholders’ Equity (ROE)	 	24.61	 	25.98	 	23.66	 	23.63	 	23.42	 	
Efficiency Ratio 2	 	53.72	 	52.07	 	52.86	 	55.37	 	55.45	 	

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