U N I T E D   S T A T E S
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)	 	January 20, 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):
 
¨  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

 
Item 1.01.       Entry into a Material Definitive Agreement.
 
On January 20, 2012, Bank of Hawaii Corporation (the “Company”) and Bank of Hawaii (the “Bank”) entered into an agreement with Kent T. Lucien (the “Amendment to Retention Agreement”) in connection with his employment with the Company and Bank as Vice Chairman and Chief Financial Officer, extending the date and terms of his employment as set forth in that certain Retention Agreement entered into with Mr. Lucien on June 30, 2010, from January 31, 2013 to January 31, 2014.  A copy of the Amendment to Retention Agreement is attached as Exhibit 10.1 and incorporated herein by reference.
 
Item 2.02.                             Results of Operations and Financial Condition.
 
On January 23, 2012, Bank of Hawaii Corporation announced its results of operations for the quarter ended December 31, 2011.  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 5.02(e).   Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
 
On January 20, 2012, the Human Resources and Compensation Committee of the Board of Directors of the Company (the “Committee”) granted the following restricted stock awards under the 2004 Stock and Incentive Compensation Plan (the “Plan”) to Peter S. Ho, Chairman, CEO and President, Peter M. Biggs, Vice Chairman and Chief Retail Officer, Kent T. Lucien, Vice Chairman and Chief Financial Officer, Mark A. Rossi, Vice Chairman, General Counsel and Corporate Secretary, and Mary E. Sellers, Vice Chairman and Chief Risk Officer:
 
 GRANTEE	 	NUMBER OF SHARES	
Peter S. Ho	 	31,120	
Peter M. Biggs	 	11,120	
Kent T. Lucien	 	11,120	
Mark A. Rossi	 	11,120	
Mary E. Sellers	 	11,120	
 
The referenced restricted stock awards were made pursuant to individual Restricted Stock Grant Agreements, which provide for the restricted stock to vest in one-third blocks on February 28, 2013, December 31, 2013 and December 31, 2014, provided that certain conditions of employment and Company performance objectives relating to the Company’s Return on Assets, Return on Equity or Stock Price to Book Ratio, as compared to designated Peer Group performance, are achieved and certified by the Committee. Vesting is accelerated upon a change of control of the Company or upon the holder’s death or termination of employment with the Company due to disability.  A copy of the form 2012 Restricted Stock Grant Agreement referenced above is attached hereto as Exhibit 10.2 and incorporated herein by reference.

 
On January 20, 2012, the Committee approved a compensation program (the “Program”) for certain executives providing for a conversion of an identified percentage of their 2011 base salary to restricted shares in the Company.  The restricted share grants shall be dated January 20, 2012, with the share price to be determined as of the close of the trading day on January 20, 2012.  Adoption of the Program results in a conversion of 2012 base salary for Peter S. Ho, Chairman, CEO and President in the amount of $75,000, Peter M. Biggs, Vice Chairman and Chief Retail Officer in the amount of $11,500, Kent T. Lucien, Vice Chairman and Chief Financial Officer in the amount of $42,500, Mark a. Rossi, Vice Chairman, General Counsel and Corporate Secretary in the amount of $39,000, and Mary E. Sellers, Vice Chairman and Chief Risk Officer in the amount of $34,000.  The restricted shares awarded to Peter S. Ho, Peter M. Biggs, Mark A. Rossi, and Mary E. Sellers shall vest annually and equally over a 5 year period commencing on January 31, 2013 and ending on January 31, 2017.  The restricted shares awarded to Kent T. Lucien shall vest 20% on January 31, 2013 and 80% on January 31, 2014.  Vesting is accelerated upon a change of control of the Company or upon the holder’s death or termination of employment with the Company due to disability.  A copy of the form 2012 Restricted Stock In Lieu of Base Salary Grant Agreement referenced above is attached as Exhibit 10.3 and incorporated herein by reference.
 
On January 20, 2012, the Committee approved potential total maximum stock option grants available under the Company Share Appreciation Replacement Program for 2012 of 23,333 shares for Peter S. Ho, Chairman, President and CEO and 15,000 shares each for Peter M. Biggs, Vice Chairman and  Chief Retail Officer,  Kent T. Lucien, Vice Chairman and Chief Financial Officer, Mark A. Rossi, Vice Chairman, General Counsel and Corporate Secretary, and  Mary E. Sellers, Vice Chairman and Chief Risk Officer.  The actual number of stock option grants to be awarded for 2012 will be based on achieving certain conditions of employment and Company performance objectives relating to the Company’s Return on Assets, Return on Equity or Stock Price to Book Ratio, as compared to designated Peer Group performance.  A copy of the form 2012 Nonqualified Stock Option Agreement referenced above is attached as Exhibit 10.4 and incorporated herein by reference.
 
Item 9.01.       Financial Statements and Exhibits.
 
(d)                              Exhibits
 
Exhibit No.
 
10.1                    Amendment to Retention Agreement with Kent T. Lucien
10.2                    2012 Restricted Stock Grant Agreement
10.3                    2012 Restricted Stock In Lieu Of Base Salary Grant Agreement
10.4                    2012 Nonqualified Stock Option Agreement
99.1                    January 23, 2012 Press Release: Bank of Hawaii Corporation 2011 Financial Results.  Any internet addresses provided in this release are for informational purposes only and are not intended to be hyperlinks.  Furnished herewith.

 
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:  January 23, 2012	BANK OF HAWAII CORPORATION	

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

Exhibit 10.1
 
FIRST AMENDMENT TO RETENTION AGREEMENT
Between Bank of Hawaii and Kent T. Lucien dated January 20, 2012
 
THIS FIRST AMENDMENT TO RETENTION AGREEMENT (“First Amendment”) is made and entered into on January 20, 2012 (“Effective Date”) by and between Bank of Hawaii Corporation and Bank of Hawaii (collectively “the Bank”) and Kent T. Lucien (“You”).
 
WITNESSETH THAT:
 
WHEREAS, the Bank and You have entered into a certain Retention Agreement dated June 30, 2010 (“Agreement”); and
 
WHEREAS, the Bank and You would like to amend the Agreement by extending your Separation Date from January 31, 2013 to January 31, 2014, and necessarily conforming other contractual terms to such extension;
 
NOW THEREFORE, in consideration of the mutual promises and covenants hereto of the parties, the Bank and You agree to amend the Agreement as follows:
 
1)    The language in Section 1 is deleted in its entirety and replaced with the following:
 
1.   Duties and Compensation until your Departure Date.  You will continue the position of Vice Chair and Chief Financial Officer.  You agree to work diligently in your position (or in any other position to which you may be placed) through January 31, 2014 (“Separation Date”), at which time you will be relieved of all duties and responsibilities.  The Bank may advance your Separation Date to any date before January 31, 2014, or may extend your Separation Date to any date within six (6) months after January 31, 2014.  Any Separation Date after July 31, 2014 will require mutual agreement of the parties in writing.
 
a.    You will be paid your salary and benefits through the Separation Date.
 
b.    You will participate in the Executive Incentive Plan for the calendar years 2012 and 2013, provided you are employed for the duration of the Performance Period as defined in the applicable Plan.
 
c.    The Bank shall recommend that the HR and Compensation Committee authorize your participation in the 2012 Bank of Hawaii Corporation Equity Program at the Vice Chairman level in the first quarter of 2012.

 
Kent T. Lucien
1st Amendment to Retention Agreement
January 20, 2012
Page 2 of 4
 
d.    In the event you voluntarily terminate employment prior to the Separation Date, you will receive only your salary and vested benefits through the date of your termination of employment.
 
e.    You acknowledge and agree that no compensation or other payment except as specified in the Agreement as amended by this First Amendment will be owed to you after the Separation Date.
 
2)    The language in Section 3 is deleted in its entirety and replaced with the following:
 
3.     Retention Payment (“Monetary Consideration”).  If you perform your duties to the Bank’s satisfaction through January 31, 2014, (including attaining Performance and Transition Objectives which shall be deemed to be met unless you are otherwise notified prior to December 31, 2013) and comply with the requirements in Section 1, 2, 3, 6, 7, 8, and 9 of this Agreement, you will receive a Retention Payment of $425,000.00, subject to reduction for tax withholding requirements.  The Retention Payment will be paid by the 60 th  day following January 31, 2014.  After the Separation Date, you will no longer be eligible for contributions or benefit accruals under any of the Bank’s tax-qualified retirement plans or nonqualified deferred compensation plans.  Any outstanding equity grants will expire in accordance with the terms of the applicable agreements.
 
3)    The substantive language in Sections 2(d), 4, 5, 6, 9, 10, 11, and 12 of the Agreement is hereby amended by changing the word “Agreement” to “Agreement as modified by the First Amendment” wherever it appears.
 
4)    The language in Section 14 of the Agreement is deleted in its entirety and replaced with the following:
 
14.Older Workers Benefit Protection Act notice.  The following is required by the Older Workers Benefit Protection Act (OWBPA”):
 
This First Amendment includes a waiver of any claims you may have under the Age Discrimination in Employment Act (“ADEA”) through the Execution Date of the First Amendment.  You have up to twenty-one (21) days from the date of this letter to accept the terms of this First Amendment, although you may accept it at any time within those 21 days.  To properly weigh the advantages and disadvantages of signing this First Amendment and waiving your ADEA claims, you are advised to consult an attorney about this Agreement prior to signing.  If you want to accept the First Amendment prior to the expiration of the 21 days, you will need

 
Kent T. Lucien
1st Amendment to Retention Agreement
January 20, 2012
Page 3 of 4
 
to indicate your waiver of the 21-day consideration period by signing in the space indicated below.
 
5)   Unless amended, modified, supplemented and/or controverted by the Bank and You in this First Amendment, all other terms and conditions of said Agreement shall remain in full force and effect.
 
To accept this First Amendment, please date, sign and return it to the Bank’s Executive Vice President and Director of Human Resources.  ( An extra copy for your file is provided. )  Once you do so, pursuant to the OWBPA, you will still have an additional seven (7) days in which to revoke your acceptance.  To revoke, you must send the Bank’s Executive Vice President and Director of Human Resources a written statement of revocation by registered mail, return receipt requested.  If you revoke your acceptance of this First Amendment, the First Amendment will be void.  If you do not revoke, the eighth (8th) day after the date of your acceptance will be the “Effective Date” of this First Amendment. The First Amendment will not be effective and enforceable until the revocation period has expired.
 
BANK OF HAWAII CORPORATION AND
BANK OF HAWAII

By:	 	 	Date:	 	
 	PETER S. HO	 	 	 	
 	Chairman, President and CEO	 	 	 	

By signing this First Amendment, I acknowledge that I have had the opportunity to review it carefully with an attorney of my choice; that I have read and understand its terms; and that I voluntarily agree to them.
 
Dated:	 	 	 	
 	Kent T. Lucien	

Pursuant to 29 C.F. R. Section 125.22(e)(6), I hereby knowingly and voluntarily waive the twenty-one (21) day pre-execution consideration period set forth in the Older Workers Benefit Protection Act (29 U.S.C. Section 626(f)(1)(F)(i)).
 
Dated:	 	 	 	
 	Kent T. Lucien	

 
Kent T. Lucien
1st Amendment to Retention Agreement
January 20, 2012
Page 4 of 4
 
EXHIBIT A
 
[To be executed on or after Separation Date]
 
WAIVER AND RELEASE OF CLAIMS THROUGH SEPARATION DATE
 
I  agree that all applicable terms and conditions in my Waiver and Release of Claims set forth in Section 6 of the Agreement dated June 30, 2010 as amended by that certain First Amendment to Retention Agreement dated                             apply with respect to the period of my employment with the Bank from the Execution Date of the First Amendment through my Separation Date.

UNDERSTOOD AND AGREED:

Dated:	 	 	 	
 	Kent T. Lucien	

Pursuant to 29 C.F.R. § 1625.22(e)(6), I hereby knowingly and voluntarily waive the twenty-one (21) day pre-execution consideration period set forth in Older Workers Benefit Protection Act (29 U.S.C. § 626(f)(1)(F)(i)).

Dated:	 	 	 	
 	Kent T. Lucien	

Exhibit 10.2
 
BANK OF HAWAII CORPORATION
2004 STOCK AND INCENTIVE COMPENSATION PLAN
 
2012 RESTRICTED STOCK GRANT AGREEMENT
 
This Restricted Stock Grant Agreement (“Agreement”) dated January 20, 2012 (“Grant Date”), between Bank of Hawaii Corporation, a Delaware corporation (“Company”), with its registered office at 130 Merchant Street, Honolulu, Hawaii 96813, and the executive of the Company or subsidiary of the Company (“Grantee”) who is specified in the “Notice of 2012 Restricted Stock Grant” (“Notice”) attached hereto.
 
1.           Grant of Restricted Shares.  Effective as of the Grant Date, the Human Resources and Compensation Committee of the Company’s Board of Directors (“Committee”) has granted to Grantee the number of shares of the Company’s common stock (“Restricted Shares”) as specified in the Notice pursuant to the Bank of Hawaii Corporation 2004 Stock and Incentive Compensation Plan, as amended (“Plan”).  The grant of Restricted Shares evidenced by this Agreement is made subject to the terms and conditions of the Plan and of this Agreement.  In case of conflict between the provisions of the Plan and the provisions of this Agreement, the provisions of the Plan shall control.  Certain terms defined in the Plan are used in this Agreement with the meanings given to them in the Plan.
 
2.           Restrictions During Period of Restriction.  Restricted Shares shall be subject to forfeiture by Grantee until the “Restriction Period” terminates as to such Restricted Shares and the Restricted Shares shall vest in Grantee (up to the maximum shares granted under this Agreement) in accordance with the terms of the Plan (including, but not limited to, conditions and restrictions imposed pursuant to Section 8.4 of the Plan) and this Agreement.
 
a.           Restriction Period.  For purposes of this Agreement and with respect to a designated block of Restricted Shares granted under this Agreement, the term “Restriction Period” shall mean the period that commences on the Grant Date and terminates following achievement of the service and financial performance objectives applicable to the block of Restricted Shares as described below.
 
(1)         Component Conditioned on Service
 
One-third of the total Restricted Shares granted hereunder shall be subject to the termination of the Restriction Period under this Section 2.a(1) that is conditioned on service and the achievement of positive net income (which one-third block is referred to hereunder as the “Service Shares”) as follows:
 
(a)          On February 28, 2013, with respect to one-third of the Service Shares provided that (I) Grantee remains an Employee through December 31, 2012, and (II) the Committee shall have certified with respect to the fiscal year ending December 31, 2012, that the Company has achieved positive net income as publicly announced by the Company in its earnings release for that period (“Net Income Performance Objective”).

 
(b)          On December 31, 2013, with respect to one-third of the Service Shares provided that (I) Grantee remains an Employee through December 31, 2013, and (II) the Net Income Performance Objective is satisfied.
 
(c)          On December 31, 2014, with respect to one-third of the Service Shares provided that (I) Grantee remains an Employee through December 31, 2014, and (II) the Net Income Performance Objective is satisfied.
 
(2)         Component Conditioned on First-Tier Performance
 
One-third of the total Restricted Shares granted hereunder shall be subject to the termination of the Restriction Period under this Section 2.a(2) that is conditioned on service and the achievement of financial performance criteria at no less than the second-tier peer group level (which one-third block is referred to hereunder as the “First-Tier Shares”) as follows:
 
(a)          On February 28, 2013, with respect to one-third of the First-Tier Shares provided that (I) Grantee remains an Employee through December 31, 2012, and (II) the Committee shall have certified with respect to the fiscal year ending December 31, 2012, that the Company’s “Return on Assets”, or “Return on Equity”, or “Stock Price to Book Ratio v. Peers” falls within the top two quartiles of the 2012 Regional Bank Index or the 2012 U.S. Bank Index that has been designated by the Committee on or before the Grant Date and as the same may be revised from time to time to delete organizations that cease to be publicly-held (“First-Tier Performance Objective”).
 
For purposes of this Agreement the terms “Return on Assets”, “Return on Equity”, and “Stock Price to Book Ratio vs. Peers” shall mean such terms as determined and reported with respect to the Company for purposes of placement under designated 2012 Regional Bank Index and the 2012 U.S. Bank Index.
 
(b)          On December 31, 2013, with respect to one-third of the First-Tier Shares provided that (I) Grantee remains an Employee through December 31, 2013, and (II) the First-Tier Performance Objective is satisfied.
 
(c)          On December 31, 2014, with respect to one-third of the First-Tier Shares provided that (I) Grantee remains an Employee through December 31, 2014, and (II) the First-Tier Performance Objective is satisfied.
 
(3)         Component Conditioned on Second-Tier Performance
 
One-third of the total Restricted Shares granted hereunder shall be subject to the termination of the Restriction Period under this Section 2.a(3) that is conditioned on service and the achievement of financial performance criteria at
 
2.

 
the first-tier peer group level (which one-third block is referred to hereunder as the “Second-Tier Shares”) as follows:
 
(a)          On February 28, 2013, with respect to one-third of the Second-Tier Shares provided that (I) Grantee remains an Employee through December 31, 2012, and (II) the Committee shall have certified with respect to the fiscal year ending December 31, 2012, that the Company’s “Return on Assets”, or “Return on Equity”, or “Stock Price to Book Ratio vs. Peers” falls within the top quartile of the 2012 Regional Bank Index or the 2012 U.S. Bank Index that has been designated by the Committee on or before the Grant Date and as the same may be revised from time to time to delete organizations that cease to be publicly-held (“Second-Tier Performance Objective”).
 
(b)          On December 31, 2013, with respect to one-third of the Second-Tier Shares provided that (I) Grantee remains an Employee through December 31, 2013, and (II) the Second-Tier Performance Objective is satisfied.
 
(c)          On December 31, 2014, with respect to one-third of the Second-Tier Shares provided that (I) Grantee remains an Employee through December 31, 2014, and (II) the Second-Tier Performance Objective is satisfied.
 
b.           Committee Determinations. This Agreement shall be interpreted in a manner consistent with the requirements of the performance-based compensation exception under Code Section 162(m).  The Committee shall endeavor to certify whether the service and financial performance objectives described in Section 2.a of this Agreement have been satisfied on or prior to the scheduled time of vesting as specified in Section 2.a.  In the event that the Committee has not done so, it shall make such determination as soon thereafter as possible and, if the satisfaction of the service and financial performance objectives have been certified, the Restricted Shares subject to vesting shall vest at the time of the making of such certification.
 
c.           Other Termination of Restriction Period.  The Restriction Period shall terminate and all theretofore unvested and unforfeited Restricted Shares shall vest in Grantee upon the earliest to occur of the following:  (i) the death of Grantee; (ii) the Grantee is no longer an Employee due to “disability” within the meaning of that term under Code Section 409A and the regulations promulgated thereunder; or (iii) the occurrence of a “Change in Control” in accordance with Article 15 of the Plan.
 
d.           Forfeiture of Unvested Restricted Shares.  Each block of Restricted Shares that remains unvested and unforfeited shall be forfeited and transferred to the Company upon the first to occur of: (i) except as provided in Section 2.c of this Agreement, Grantee’s ceasing to be an Employee for any reason, whether voluntary or involuntary; and (ii) the making of the determination that the financial performance objective applicable to the block of Restricted Shares has not been satisfied for such block under Section 2.a of this Agreement.  Grantee’s employment shall not be treated as
 
3.

 
terminated in the case of a transfer of employment within the Company and its subsidiaries or in the case of sick leave and other approved leaves of absence.
 
e.           Transfer Restriction.  During the Period of Restriction for a particular Restricted Share, such Restricted Share shall be subject to the restrictions on transferability set forth in Section 8.3 of the Plan.
 
3.           Issuance of Shares; Registration; Withholding Taxes.  Restricted Shares shall be issued in Grantee’s name, shall bear the restrictive legend specified in Section 8.5 of the Plan (and such other restrictive legends as are required or deemed advisable by the Company under the provisions of any applicable law), and shall be held by the Company until all restrictions lapse or such shares are forfeited as provided herein.  The Restricted Shares as to which the Restriction Period has terminated shall be delivered to Grantee upon such termination.  The Company may postpone the issuance or delivery of the Shares until (a) the completion of registration or other qualification of such Shares or transaction under any state or federal law, rule or regulation, or any listing on any securities exchange, as the Company shall determine to be necessary or desirable; (b) the receipt by the Company of such written representations or other documentation as the Company deems necessary to establish compliance with all applicable laws, rules and regulations, including applicable federal and state securities laws and listing requirements, if any; and (c) the payment to the Company in accordance with Article 17 of the Plan of any amount required by the Company to satisfy any federal, state or other governmental withholding tax requirements related to the issuance or delivery of the Shares.  Grantee shall comply with any and all legal requirements relating to Grantee’s resale or other disposition of any Shares acquired under this Agreement.
 
4.           Share Adjustments.  The number and kind of Restricted Shares or other property subject to this Agreement shall be subject to adjustment in accordance with Section 4.2 of the Plan.
 
5.           Rights as Shareholder.  Unless otherwise provided herein, Grantee shall be entitled to all of the rights of a shareholder with respect to the Restricted Shares, including the right to vote such Shares and to received dividends and other distributions (not including share adjustments as described in Section 4 above) payable with respect to such Shares from and after the Grant Date.  Grantee’s rights as a shareholder shall terminate with respect to any Restricted Shares forfeited by Grantee.
 
6.           Amendment.  This Agreement may be amended by the Committee at any time based on its determination that the amendment is necessary or advisable in light of any addition to, or change in, the Code or regulations issued thereunder or any federal or state securities law or other law or regulation, or the Plan, or based on any discretionary authority of the Committee under the Plan.  Unless necessary or advisable due to a change in law, any amendment to this Agreement which has a material adverse effect on the interest of Grantee under this Agreement shall be adopted only with the consent of Grantee.
 
7.           Section 83(b) Election.  Grantee shall promptly deliver to the Company a copy of any election filed by Grantee in respect of the Restricted Shares pursuant to Code Section 83(b).
 
4.

 
8.           Notices.  Any notice or other communication made in connection with this Agreement shall be deemed duly given when delivered in person or mailed by certified or registered mail, return receipt requested, to Grantee at Grantee’s address shown on Company records or such other address designated by Grantee by similar notice, or to the Company at its then principal office, to the attention of the Corporate Secretary of the Company.  Furthermore, such notice or other communication shall be deemed duly given when transmitted electronically to Grantee at Grantee’s electronic mail address shown on the Company records or, to the extent that Grantee is an active employee, through the Company’s intranet.
 
9.           Miscellaneous.  This Agreement and the Plan set forth the final and entire agreement between the parties with respect to the subject matter hereof, which shall be governed by and shall be construed in accordance with the laws of the State of Hawaii, to the extent not governed by federal law.  This Agreement shall bind and benefit Grantee, the heirs, distributees and personal representative of Grantee, and the Company and its successors and assigns.  This Agreement may be signed in counterparts, each of which shall be deemed an original, and said counterparts shall together constitute one and the same instrument.  Capitalized terms not herein defined shall have the meanings prescribed to them under the Plan.
 
BY ACCEPTING THE RESTRICTED SHARES GRANTED UNDER THIS 2012 RESTRICTED STOCK GRANT AGREEMENT, GRANTEE AGREES TO ALL THE TERMS AND CONDITIONS DESCRIBED IN THIS AGREEMENT AND IN THE PLAN.
 
5.

Exhibit 10.3
 
BANK OF HAWAII CORPORATION
2004 STOCK AND INCENTIVE COMPENSATION PLAN
 
2012 RESTRICTED STOCK IN LIEU OF BASE SALARY GRANT AGREEMENT
 
This Restricted Stock Grant Agreement (“Agreement”) dated January 20, 2012 (“Grant Date”), between Bank of Hawaii Corporation, a Delaware corporation (“Company”), with its registered office at 130 Merchant Street, Honolulu, Hawaii 96813 and the executive of the Company or subsidiary of the Company (“Grantee”), who is specified in the Notice of 2012 Restricted Stock in Lieu of Base Salary Grant (“Notice”) attached hereto.
 
1.           Grant of Restricted Shares.  Effective as of the Grant Date, the Human Resources and Compensation Committee of the Company’s Board of Directors (“Committee”) has granted to Grantee the number of shares of the Company’s common stock (“Restricted Shares”) as specified in the Notice pursuant to the Bank of Hawaii Corporation 2004 Stock and Incentive Compensation Plan, as amended (“Plan”).  The grant of Restricted Shares evidenced by this Agreement is made subject to the terms and conditions of the Plan and of this Agreement.  In case of conflict between the provisions of the Plan and the provisions of this Agreement, the provisions of the Plan shall control.  Certain terms defined in the Plan are used in this Agreement with the meanings given to them in the Plan.
 
2.           Restrictions During Period of Restriction.  Restricted Shares shall be subject to forfeiture by Grantee until the “Restriction Period” terminates as to such Restricted Shares and the Restricted Shares shall vest in Grantee (up to the maximum shares granted under this Agreement) in accordance with the terms of the Plan (including, but not limited to, conditions and restrictions imposed pursuant to Section 8.4 of the Plan) and this Agreement.
 
a.           Restriction Period.  For purposes of this Agreement and with respect to a designated block of Restricted Shares granted under this Agreement, the term “Restriction Period” shall mean the period that commences on the Grant Date and terminates following achievement of the service objective applicable to the block of Restricted Shares as described below.
 
(1)         Service Objective
 
(a)          On January 31, 2013, with respect to 20% of the total Restricted Shares granted hereunder provided that Grantee remains an Employee through such date.
 
(b)          On January 31, 2014, with respect to 20% of the total Restricted Shares granted hereunder provided that Grantee remains an Employee through such date.
 
(c)          On January 30, 2015, with respect to 20% of the total Restricted Shares granted hereunder provided that Grantee remains an Employee through such date.

 
(d)          On January 29, 2016, with respect to 20% of the total Restricted Shares granted hereunder provided that Grantee remains an Employee through such date.
 
(e)          On January 31, 2017, with respect to 20% of the total Restricted Shares granted hereunder provided that Grantee remains an Employee through such date.
 
(2)         Company’s Determinations. With respect to a designated block of Restricted Shares, the Company’s Human Resources shall endeavor to certify whether the service objective described in Section 2.a(1) of this Agreement has been satisfied on the scheduled time of vesting as specified in Section 2.a(1).  In the event that Human Resources has not done so, it shall make such determination as soon thereafter as possible and, if the satisfaction of the service objective has been certified, the Restricted Shares subject to vesting shall vest at the time of the making of such certification.
 
b.           Other Termination of Restriction Period.  The Restriction Period shall terminate and all theretofore unvested and unforfeited Restricted Shares shall vest in the Grantee upon the earliest to occur of the following:  (i) the death of Grantee; (ii) the Grantee is no longer an Employee due to “disability” within the meaning of that term under Code Section 409A and the regulations promulgated thereunder; (iii) the Grantee is no longer an Employee due to an “involuntary separation from service” without “Cause” (within the meaning of Section 2.7 of the Plan) in accordance with Code Section 409A and the regulations promulgated thereunder; or (iv) the occurrence of a “Change in Control” in accordance with Article 15 of the Plan.
 
c.           Forfeiture of Unvested Restricted Shares.  Each block of Restricted Shares that remains unvested and unforfeited shall be forfeited and transferred to the Company upon Grantee’s ceasing to be an Employee for any reason, whether voluntary or involuntary (except as provided in Section 2.b of this Agreement).
 
d.           Transfer Restriction.  During the Period of Restriction for a particular Restricted Share, such Restricted Share shall be subject to the restrictions on transferability set forth in Section 8.3 of the Plan.
 
3.           Issuance of Shares; Registration; Withholding Taxes.  Certificates for the Restricted Shares shall be issued in Grantee’s name, shall bear the restrictive legend specified in Section 8.5 of the Plan (and such other restrictive legends as are required or deemed advisable by the Company under the provisions of any applicable law) and shall be held by the Company until all restrictions lapse or such shares are forfeited as provided herein.  A certificate or certificates representing the Restricted Shares as to which the Restriction Period has terminated shall be delivered to Grantee upon such termination.  The Company may postpone the issuance or delivery of the Shares until (a) the completion of registration or other qualification of such Shares or transaction under any state or federal law, rule or regulation, or any listing on any securities exchange, as the Company shall determine to be necessary or desirable; (b) the receipt by the Company of such written representations or other documentation as the Company deems necessary to establish compliance with all applicable laws, rules and regulations, including applicable federal and state securities laws and listing requirements, if any; and (c) the payment to the Company in accordance with Article 17 of the Plan of any amount required by the
 
2.

 
Company to satisfy any federal, state or other governmental withholding tax requirements related to the issuance or delivery of the Shares.  Grantee shall comply with any and all legal requirements relating to Grantee’s resale or other disposition of any Shares acquired under this Agreement.
 
4.           Share Adjustments.  The number and kind of Restricted Shares or other property subject to this Agreement shall be subject to adjustment in accordance with Section 4.2 of the Plan.
 
5.           Rights as Shareholder.  Unless otherwise provided herein, Grantee shall be entitled to all of the rights of a shareholder with respect to the Restricted Shares, including the right to vote such Shares and to receive dividends and other distributions (not including share adjustments as described in Section 4 above) payable with respect to such Shares from and after the Grant Date.  Grantee’s rights as a shareholder shall terminate with respect to any Restricted Shares forfeited by Grantee.
 
6.           Amendment.  This Agreement may be amended by the Committee at any time based on its determination that the amendment is necessary or advisable in light of any addition to, or change in, the Code or regulations issued thereunder or any federal or state securities law or other law or regulation, or the Plan, or based on any discretionary authority of the Committee under the Plan.  Unless necessary or advisable due to a change in law, any amendment to this Agreement which has a material adverse effect on the interest of Grantee under this Agreement shall be adopted only with the consent of Grantee.
 
7.           Section 83(b) Election.  Grantee shall promptly deliver to the Company a copy of any election filed by Grantee in respect of the Restricted Shares pursuant to Code Section 83(b).
 
8.           Notices.  Any notice or other communication made in connection with this Agreement shall be deemed duly given when delivered in person or mailed by certified or registered mail, return receipt requested, to Grantee at Grantee’s address shown on Company records or such other address designated by Grantee by similar notice, or to the Company at its then principal office, to the attention of the Corporate Secretary of the Company.  Furthermore, such notice or other communication shall be deemed duly given when transmitted electronically to Grantee at Grantee’s electronic mail address shown on the Company records or, to the extent that Grantee is an active employee, through the Company’s intranet.
 
9.           Miscellaneous.  This Agreement and the Plan set forth the final and entire agreement between the parties with respect to the subject matter hereof, which shall be governed by and shall be construed in accordance with the laws of the State of Hawaii, to the extent not governed by federal law.  This Agreement shall bind and benefit Grantee, the heirs, distributees and personal representative of Grantee, and the Company and its successors and assigns.  This Agreement may be signed in counterparts, each of which shall be deemed an original, and said counterparts shall together constitute one and the same instrument.  Capitalized terms not herein defined shall have the meanings prescribed to them under the Plan.
 
BY ACCEPTING THE RESTRICTED SHARES GRANTED UNDER THIS 2012 RESTRICTED STOCK IN LIEU OF BASE SALARY GRANT AGREEMENT, GRANTEE AGREES TO ALL THE TERMS AND CONDITIONS DESCRIBED IN THIS AGREEMENT AND IN THE PLAN.
 
3.

Exhibit 10.4
 
STOCK OPTION GRANT UNDER THE
BANK OF HAWAII CORPORATION
2004 STOCK AND INCENTIVE COMPENSATION PLAN
 
2012 NONQUALIFIED STOCK OPTION AGREEMENT
 
This Agreement dated January 20, 2012, between Bank of Hawaii Corporation, a Delaware corporation (“Company”), with its registered office at 130 Merchant Street, Honolulu, Hawaii 96813, and the executive of the Company or subsidiary of the Company (“Optionee”) who is specified in the “Notice of 2012 Nonqualified Stock Option Grant” (“Notice”) attached hereto.
 
1.         Grant of Option.  The Company hereby grants to Optionee, effective as of January 20, 2012 (“Grant Date”), the right and option (“Option”, in the aggregate or singularly as the context implies) to purchase from the Company, for a price equal to the exercise price as specified in the Notice (“Exercise Price”), up to the number of shares of Company common stock (“Company Stock” or “Shares”) as specified in the Notice.  This grant of Option shall be subject to the applicable terms and conditions set forth below and is being granted pursuant to the Bank of Hawaii Corporation 2004 Stock and Incentive Compensation Plan (“Plan”) in accordance with the authority and direction of the Human Resources and Compensation Committee (“Committee”) of the Company’s Board of Directors.  The Option shall constitute a nonqualified stock option which is not a qualified stock option as defined in Section 422 of the Internal Revenue Code of 1986, as amended (“Code”).
 
2.         Primary Terms and Conditions of Option
 
a.         Exercise Price.  The Exercise Price shall be the price per Share as specified in the Notice, which is the fair market value per Share on the Grant Date as determined in accordance with the Plan.
 
b.         Term of Option.  The term of the Option over which the Option is in effect shall commence on the Grant Date and shall terminate on the tenth anniversary of the Grant Date.  The Option shall not be exercisable after the term of the Option.
 
c.         Vesting Based on Service and Performance.
 
The Option for the purchase of Shares is conditioned upon the achievement of service and financial performance objectives applicable to the Option.  Except as otherwise provided hereunder, the Option shall be forfeited by the Optionee and treated as null and void under the Plan to the extent that any vesting condition applicable to the Option is not satisfied. The Option shall not be exercisable prior to the vesting of the Option.
 
(1)        Component Conditioned on Service
 
One-third of the total Option granted hereunder shall be subject to vesting under this Section 2.c(1) conditioned on service and the achievement of positive net income (which one-third block is referred to hereunder as the “Service Options”).  Specifically, the Service Options shall become vested on

 
February 28, 2013, provided that (I) Grantee remains an Employee through December 31, 2012, and (II) the Committee shall have certified with respect to the fiscal year ending December 31, 2012, that the Company has achieved positive net income as publicly announced by the Company in its earnings release for that period (“Net Income Performance Objective”).
 
(2)        Component Conditioned on First-Tier Performance
 
One-third of the total Option granted hereunder shall be subject to vesting under this Section 2.c(2) conditioned on service and the achievement of financial performance criteria at no less than the first-tier peer group level (which one-third block is referred to hereunder as the “First-Tier Options”).  Specifically, the First-Tier Options shall become vested on February 28, 2013, provided that (I) Grantee remains an Employee through December 31, 2012, and (II) the Committee shall have certified with respect to the fiscal year ending December 31, 2012, that the Company’s “Return on Assets”, or “Return on Equity”, or “Stock Price to Book Ratio v. Peers” falls within the top two quartiles of the 2012 Regional Bank Index or the 2012 U.S. Bank Index that has been designated by the Committee on or before the Grant Date and as the same may be revised from time to time to delete organizations that cease to be publicly-held (“First-Tier Performance Objective”).
 
For purposes of this Agreement the terms “Return on Assets”, “Return on Equity”, and “Stock Price to Book Ratio vs. Peers” shall mean such terms as determined and reported with respect to the Company for purposes of placement under designated 2012 Regional Bank Index and the 2012 U.S. Bank Index.
 
(3)        Component Conditioned on Second-Tier Performance
 
One-third of the total Options granted hereunder shall be subject to vesting under this Section 2.c(3) conditioned on service and the achievement of financial performance criteria at the second-tier peer group level (which one-third block is referred to hereunder as the “Second-Tier Options”).  Specifically, the Second-Tier Options shall become vested on February 28, 2013, provided that (I) Grantee remains an Employee through December 31, 2012, and (II) the Committee shall have certified with respect to the fiscal year ending December 31, 2012, that the Company’s “Return on Assets”, or “Return on Equity”, or “Stock Price to Book Ratio vs. Peers” falls within the top quartile of the 2012 Regional Bank Index or the 2012 U.S. Bank Index that has been designated by the Committee on or before the Grant Date and as the same may be revised from time to time to delete organizations that cease to be publicly-held (“Second-Tier Performance Objective”).
 
d.         Exercisability of Option.  Except as otherwise provided hereunder, the Option shall be exercisable on or after February 28, 2013, to the extent that the Option becomes vested. The Committee shall endeavor to certify whether the service and financial performance objectives described in Section 2.c of this Agreement have been satisfied on or prior to the scheduled time of vesting on February 28, 2013.  However,
 
2.

 
in the event that the Committee has not done so, it shall make such determination as soon thereafter as possible and, if the satisfaction of the service and financial performance objectives have been certified, the Option shall become vested and exercisable at the time of the making of such certification.  In addition, the Option shall be exercisable upon the occurrence of a “Change in Control” of the Company (as described in Section 2.8 of the Plan).
 
3.         Exercisability Following Termination of Employment
 
a.         Generally.  This Section 3 applies to an Option that is otherwise vested and exercisable in accordance with Section 2 above. Except as other provided hereunder, such Option shall terminate and shall not be exercisable following Optionee’s termination of employment.
 
If Optionee’s employment with the Company or any subsidiary terminates for a reason other than described in the below Sections 3.b, 3.c, and 3.d, the Option shall continue to be exercisable for a period of 120 days following such termination, but the Option shall not be exercisable after the original term of the Option.
 
For purposes of this Section 3, Optionee’s employment shall not be treated as terminated in the case of continued employment with the Company or any of its subsidiaries, or a transfer of employment within or between the Company and its subsidiaries, or in the case of sick leave or other approved leaves of absences.
 
To the extent provided under the Notice to Optionee, in lieu of the 120-day period applicable to a termination of employment under this Section 3.a, the Option shall continue to be exercisable for the entire duration of the original term of the Option following such termination of employment.
 
b.         Death or Disability. If Optionee’s employment with the Company or any subsidiary terminates because of Optionee’s death or “disability” within the meaning of Code Section 409A, the Option shall continue to be exercisable for a period of 12 months following such termination, but the Option shall not be exercisable after the original term of the Option.
 
c.         Retirement. If Optionee’s employment with the Company or any subsidiary terminates on or after the attainment of Early Retirement Age or Normal Retirement Age as defined by the Employees’ Retirement Plan of Bank of Hawaii (“ERP”) (whether or not Optionee is actually eligible under the ERP, and disregarding eligibility for an immediate payment of a mandatory cashout under the ERP), the Option shall continue to be exercisable for the entire duration of the original term of the Option.
 
d.         Cause.  If Optionee’s employment with the Company or any subsidiary terminates for “Cause” (as described in Section 2.7 of the Plan), the Option shall immediately terminate at such time.
 
4.         Exercise of Option.  An Option may be exercised from time to time with respect to all or any portion of the number of Shares with respect to which the Option has become exercisable by written notice to the Corporate Secretary of the Company or other authorized personnel of the Company.
 
3.

 
When Optionee gives notice of exercise of the Option, Optionee must pay the full Exercise Price for the Option Shares being purchased.  Optionee may make payment: (i) by certified check or bank check payable to the order of the Company; or (ii) by delivering (either by actual delivery or attestation) previously acquired shares of Company common stock held by Optionee for at least six months or acquired by Optionee on the open market and having an aggregate fair market value at the time of exercise equal to the full Exercise Price; or (iii) by a combination thereof.  In addition, with the approval of the Committee, the Company may cooperate with Optionee in arranging a “cashless exercise” of the Option through a broker approved by the Company, under which the broker will sell shares acquired by Optionee upon exercise of the Option and remit to the Company a sufficient portion of the sales proceeds to pay the full Exercise Price and any tax withholding required upon such exercise.
 
The Option shall not be exercised for any fractional Shares and no fractional Shares shall be issued or delivered.  If Optionee fails to pay for any Option Shares specified in the notice of exercise or fails to accept delivery of the Option Shares, the Company may terminate Optionee’s rights to purchase the Option Shares.
 
5.         Issuance of Shares; Registration; Withholding Taxes.  As soon as practicable after the exercise date of the Option, the Company shall cause to be issued and delivered to Optionee, or for Optionee’s account the Option Shares purchased.
 
The Company may postpone the issuance or delivery of the Shares until (a) the completion of registration or other qualification of such Shares or transaction under any state or federal law, rule or regulation, or any listing on any securities exchange, as the Company shall determine to be necessary or desirable; (b) the receipt by the Company of such written representations or other documentation as the Company deems necessary to establish compliance with all applicable laws, rules and regulations, including applicable federal and state securities laws and listing requirements, if any; and (c) the payment to the Company, upon its demand, of any amount requested by the Company to satisfy any federal, state or other governmental withholding tax requirements related to the exercise of the Option. The Company shall have the right to withhold with respect to the payment of any Option Shares any taxes required to be withheld because of such payment, including the withholding of Shares otherwise payable due to exercise of the Option.  Optionee shall comply with any and all legal requirements relating to Optionee’s resale or other disposition of any Shares acquired under this Agreement.  Any certificate representing the Shares acquired pursuant to the Option may bear such legend as described in Section 9 or other legend as counsel to the Company otherwise deems appropriate to assure compliance with applicable law.
 
6.         Nontransferability of Options.  The Option and this Agreement shall not be assignable or transferable by Optionee other than by will or by the laws of descent and distribution.  During Optionee’s lifetime, the Option and all rights of Optionee under this Agreement may be exercised only by Optionee (or by his or her legal guardian or legal representative).  If the Option is exercised after Optionee’s death, the Committee may require evidence reasonably satisfactory to it of the appointment and qualification of Optionee’s personal representatives and their authority and of the right of any heir or distributee to exercise the Option.  Any purported transfer or assignment of the Option shall be void and of no effect, and shall give the Company the right to terminate the Option as of the date of such purported transfer or assignment.  Notwithstanding the foregoing, with the approval of the Committee, Optionee
 
4.

 
may transfer the Option to a revocable trust under which Optionee is both the trustee and beneficiary.
 
7.         Share Adjustments.  The number of Shares subject to the Option and the Exercise Price shall be adjusted proportionately for any increase or decrease in the number of issued shares of common stock by reason of a merger, reorganization, recapitalization, reclassification, stock split, stock dividend, or other capital adjustments under Section 4.2 of the Plan.  The adjustment required shall be made by the Committee, whose determination shall be conclusive.  In no event shall the adjusted Exercise Price be less than the fair market value of the adjusted shares on the Grant Date in accordance with the requirements of Code Section 409A.
 
8.         No Rights as Shareholder.  Optionee shall acquire none of the rights of a shareholder of the Company with respect to the Shares until the Shares are issued to Optionee upon the exercise of the Option.  Except as otherwise provided in Section 7 above, no adjustments shall be made for dividends, distributions or other rights (whether ordinary or extraordinary, and whether in cash, securities or other property) for which the record date is prior to the date such Shares are issued.
 
9.         Registration of Shares.  If a registration statement under the Securities Act of 1933 with respect to the shares issuable upon exercise of any option granted under the Plan is not in effect at the time of exercise, or if a registration statement with respect to said shares to Optionee is in effect but not with respect to Optionee’s resale thereof and Optionee is an “affiliate” of the Company, then, in either such case, (a) as a condition of the issuance of the shares the person exercising such Option shall give the Company a written statement, satisfactory in form and substance to the Company, acknowledging that said shares may be reoffered or resold by Optionee only pursuant to Rule 144 under the Securities Act of 1933 or pursuant to a separate registration statement under said Act and (b) the Company may place upon any stock certificate for shares issuable upon exercise of such Option the following legend or such other legend as the Company may prescribe to prevent disposition of the shares in violation of the Securities Act of 1933:
 
THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO THEM UNDER THE ACT OR THE AVAILABILITY OF AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS.  FURTHERMORE, NO OFFER, SALE, TRANSFER, PLEDGE, OR HYPOTHECATION MAY BE MADE WITHOUT APPROVAL OF COUNSEL FOR BANK OF HAWAII CORPORATION, AFFIXED TO THIS CERTIFICATE.  THE STOCK TRANSFER AGENT HAS BEEN ORDERED TO EFFECTUATE TRANSFERS OF THIS CERTIFICATE ONLY IN ACCORDANCE WITH THE ABOVE INSTRUCTIONS.
 
10.       Optionee Bound by Plan.  Optionee hereby acknowledges receipt of a copy of the Plan and acknowledges that Optionee shall be bound by its terms, regardless of whether such terms have been set forth in the Agreement.  Notwithstanding the foregoing, if there is an inconsistency between the terms of the Plan and the terms of this Agreement,
 
5.

 
Optionee shall be bound by the terms of the Plan, which terms are incorporated herein by reference.
 
11.       Employment Rights.  Neither the Plan nor the granting of the Option shall be a contract of employment with the Company or any of its subsidiaries. Optionee may be discharged from employment at any time by the employing Company or subsidiary.
 
12.       Amendment.  Generally, this Agreement may be amended, at any time and from time to time, at the sole and complete discretion of the Committee.  Thus, this Agreement may be amended by the Committee at any time based on its determination that the amendment is necessary or advisable in light of any addition to, or change in, the Code or in regulations issued thereunder, or any federal or state securities law or other law or regulation, or based on any discretionary authority of the Committee under the Plan. However, unless necessary or advisable due to a change in law, any amendment to this Agreement which has a material adverse effect on the interest of Optionee under this Agreement shall be adopted only with the consent of Optionee.
 
13.       Notices.  Any notice or other communication made in connection with this Agreement shall be deemed duly given when delivered in person or mailed by certified or registered mail, return receipt requested, to Optionee at Optionee’s address shown on Company records or such other address designated by Optionee by similar notice, or to the Company at its then principal office, to the attention of the Corporate Secretary of the Company.  Further, such notice or other communication shall be deemed duly given when transmitted electronically to Optionee at Optionee’s electronic mail address shown on Company records or, to the extent that Optionee is an active employee, through the Company’s intranet.
 
14.       No Advice, Warranties, or Representations.  The Company is not providing Optionee with advice, warranties, or representations regarding any of the legal or tax effects to Optionee with respect to the Option.  Optionee is responsible to seek legal and tax advice from Optionee’s own legal and tax advisors as may be appropriate or desirable.
 
15.       Code Section 162(m).  This grant of Option has been structured and is intended to meet the requirements of a nonqualified stock option that constitutes “performance-based compensation” that is excepted from the applicable deduction limitation under Code Section 162(m) pursuant to Treasury Regulation Section 162-27(e)(2)(vi).
 
16.       Code Section 409A.  This grant of Option has been structured and is intended to meet the requirements for a nonqualified stock option that does not provide for a “deferral of compensation” in accordance with Code Section 409A and Treasury Regulation Section 1.409A-1(b)(5)(i)(A).
 
17.       Miscellaneous. This Agreement and the Plan set forth the final and entire agreement between the parties with respect to the subject matter hereof, which shall be governed by and shall be construed in accordance with the laws of the State of Delaware. This Agreement shall bind and benefit Optionee, the heirs, distributees and personal representative of Optionee, and the Company and its successors and assigns.
 
BY ACCEPTING THIS OPTION GRANTED UNDER THIS 2012 NONQUALIFIED STOCK OPTION AGREEMENT, GRANTEE AGREES TO ALL THE TERMS AND CONDITIONS DESCRIBED IN THIS AGREEMENT AND IN THE PLAN.
 
6.

Exhibit 99.1

 
Bank of Hawaii Corporation 2011 Financial Results
 
·          2011 Diluted Earnings Per Share $3.39
·          2011 Net Income $160.0 Million
·          Diluted Earnings Per Share for the Fourth Quarter of 2011 $0.85
·          Net Income for the Fourth Quarter of 2011 $39.2 Million
·          Board of Directors Declares Dividend of $0.45 Per Share
 
FOR IMMEDIATE RELEASE
 
HONOLULU, HI (January 23, 2012) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.85 for the fourth quarter of 2011, down from $0.92 per share in the previous quarter, and up from $0.84 per share in the same quarter last year.  Net income for the fourth quarter of 2011 was $39.2 million, compared to net income of $43.3 million in the third quarter of 2011 and $40.6 million in the same quarter last year.
 
Loan and lease balances grew to $5.5 billion during the fourth quarter of 2011, increasing by 3.5 percent compared with the third quarter of 2011.  Deposit growth remained strong, growing by 5.8 percent to $10.6 billion at December 31, 2011.  As a result of continued strength in asset quality and an improving Hawaii economy, the allowance for loan and lease losses decreased by $4.8 million to $138.6 million, representing 2.50 percent of outstanding loans and leases.
 
“Bank of Hawaii finished 2011with solid financial performance,” said Peter S. Ho, Chairman, President, and CEO.  “During the quarter, we were pleased that our loan balances increased across most categories and deposit growth remained strong.  Credit quality remained strong during the quarter.  Our balance sheet remains solid, with high levels of liquidity, capital, and reserves due to our continued focus on disciplined capital and risk management.  During the quarter we reduced our shares outstanding by 1.3 percent and maintained our quarterly dividend of $0.45 per share.”
 
The return on average assets for the fourth quarter of 2011 was 1.17 percent, compared with 1.31 percent in the previous quarter and 1.24 percent in the same quarter last year.  The return on average equity for the fourth quarter of 2011 was 15.23 percent, compared with 16.80 percent in the previous quarter and 15.08 percent in the same quarter last year.  The return on average assets for the full year of 2011 was 1.22 percent, down from 1.45 percent in 2010.  The return on average equity for the full year of 2011 was 15.69 percent compared with 18.16 percent in 2010.
 
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Bank of Hawaii Corporation 2011 Financial Results	 	Page 2	
 
Financial Highlights
 
Net interest income, on a taxable equivalent basis, for the fourth quarter of 2011 was $97.2 million, up slightly from net interest income of $97.1 million in the third quarter of 2011 and up $0.6 million from net interest income of $96.6 million in the fourth quarter of 2010.  Net interest income, on a taxable equivalent basis, for the full year of 2011 was $392.3 million, down $15.2 million from net interest income of $407.5 million in 2010.  Analyses of changes in net interest income are included in Tables 7a, 7b and 7c.
 
The net interest margin was 3.04 percent for the fourth quarter of 2011, a 5 basis point decrease from the previous quarter and an 11 basis point decrease from the same quarter last year. The net interest margin for the full year of 2011 was 3.13 percent, a 28 basis point decrease from 3.41 percent in 2010.  The reduction in the net interest margin was largely the result of higher levels of liquidity, lower average loan balances, and lower interest rates which resulted in lower yields on loans and investments.
 
During the fourth quarter of 2011 the provision for credit losses was $2.2 million, or $4.8 million less than net charge-offs.  The provision for credit losses during the third quarter of 2011 was $2.2 million, or $1.6 million less than net charge-offs.  The provision for credit losses during the fourth quarter of 2010 was $5.3 million and equaled net charge-offs.  The provision for credit losses for the full year of 2011 was $12.7 million compared with $55.3 million in 2010.
 
Noninterest income was $43.4 million for the fourth quarter of 2011, compared with $50.9 million in the third quarter of 2011 and $51.5 million in the fourth quarter of 2010.  There were no significant noninterest revenue items in the fourth quarter of 2011 or the fourth quarter of 2010.  Noninterest income in the third quarter of 2011 included a $2.0 million contingent payment received from the sale of the Company’s proprietary mutual funds in 2010.  The decline in noninterest revenue compared with the previous quarter is primarily due to lower debit card revenue resulting from implementation of the Durbin Amendment.  Mortgage Banking revenue also declined compared to the prior quarters due to the Company’s decision to portfolio some saleable mortgages.  Noninterest income for the full year of 2011 was $197.7 million compared with noninterest income of $255.3 million in 2010.  Results for 2011 included $6.4 million in gains on the sales of investment securities compared with similar gains of $42.8 million in 2010. Excluding the securities gains, noninterest revenue declined in 2011 compared with 2010 primarily due to reduced overdraft fees.
 
Noninterest expense was $84.4 million in the fourth quarter of 2011, up slightly from noninterest expense of $84.0 million in the third quarter of 2011, and down from $88.7 million in the fourth quarter of 2010.  There were no significant noninterest expense items in the fourth quarter of 2011.  Noninterest expense in the third quarter of 2011 included a donation of $2.0 million to the Bank of Hawaii Foundation.  Noninterest expense in the fourth quarter of 2010 included $1.9 million for employee incentives, $1.2 million for a refresh of personal computers, and a donation of $1.0 million to the Bank of Hawaii Foundation.  In the fourth quarter of 2010 these items were partially offset by a $1.3 million gain on the sale of foreclosed real estate and a $1.0 million settlement gain on the extinguishment of retiree life insurance obligations.  Noninterest expense for the full year of 2011 was $348.2 million, up slightly from noninterest expense of $346.2 million in 2010.  Results for 2011 included a second quarter litigation settlement of $9.0 million.
 
The efficiency ratio for the fourth quarter of 2011 was 60.42 percent compared with 56.87 percent in the previous quarter and 60.05 percent in the same quarter last year.  The efficiency ratio for the full year of 2011 was 59.23 percent compared with 52.32 percent during the full year of 2010.
 
The effective tax rate for the fourth quarter of 2011 was 26.1 percent compared with 29.6 percent in the previous quarter and 24.5 percent in the same quarter last year.  The effective tax rate for the full
 
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Bank of Hawaii Corporation 2011 Financial Results	 	Page 3	
 
year of 2011 was 29.5 percent compared with 29.3 percent for the full year of 2010.  The effective tax rate for the fourth quarters of 2011 and 2010 were favorably impacted by the release of tax reserves determined during the quarter.
 
The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury & Other.  Results are determined based on the Company’s internal financial management reporting process and organizational structure.  Selected financial information for the business segments is included in Tables 12a and 12b.
 
Asset Quality
 
The Company’s overall asset quality reflects the gradually improving Hawaii economy despite continuing weakness in the construction sector.  Total non-performing assets increased to $40.8 million at December 31, 2011 primarily due to the addition of one $2.1 million construction loan and are centered in residential mortgage loans which are taking longer to resolve through the judiciary foreclosure process.  As a percentage of total loans and leases, including loans held for sale and foreclosed real estate, non-performing assets were 0.73 percent at December 31, 2011, up from 0.70 percent as of September 30, 2011 and 0.71 percent at December 31, 2010.
 
Accruing loans and leases past due 90 days or more were $9.2 million at December 31, 2011, down from $10.9 million at September 30, 2011, and up from $7.6 million at December 31, 2010.  Delinquencies in residential first mortgage and home equity loans continue to be primarily on neighbor island properties.   Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $33.7 million at December 31, 2011 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 10.
 
Net charge-offs during the fourth quarter of 2011 were $7.0 million or 0.51 percent annualized of total average loans and leases outstanding.  Total charge-offs of $9.6 million were partially offset by total recoveries of $2.6 million.  Net charge-offs during the third quarter of 2011 were $3.8 million or 0.28 percent annualized, and were comprised of charge-offs of $10.8 million and recoveries of $7.0 million.  Net charge-offs in the fourth quarter of 2010 were $5.3 million, or 0.39 percent annualized, and were comprised of charge-offs of $15.7 million and recoveries of $10.4 million.  Net charge-offs for the full year of 2011 were $21.4 million, or 0.40 percent of total average loans and leases, down from $51.6 million, or 0.94 percent of total average loans and leases in 2010.
 
The allowance for loan and lease losses was $138.6 million at December 31, 2011, down $4.8 million from the allowance for loan and lease losses of $143.4 million at September 30, 2011 and $147.4 million at December 31, 2010.  The ratio of the allowance for loan and lease losses to total loans and leases was 2.50 percent at December 31, 2011, a decrease of 18 basis points from the previous quarter.  The reserve for unfunded commitments at December 31, 2011 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 11.
 
Other Financial Highlights
 
Total assets increased to $13.85 billion at December 31, 2011, up from total assets of $13.30 billion at September 30, 2011, and up from total assets of $13.13 billion at December 31, 2010.  Average total assets were $13.36 billion during the fourth quarter of 2011, up from average total assets of $13.13 billion during the third quarter of 2011, and up from average total assets of $12.96 billion during the fourth quarter of 2010.
 
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Bank of Hawaii Corporation 2011 Financial Results	 	Page 4	
 
Total loans and leases grew to $5.54 billion at December 31, 2011, up from $5.35 billion at September 30, 2011, and up from $5.34 billion at December 31, 2010.  Average total loans and leases were $5.42 billion during the fourth quarter of 2011, up from $5.34 billion during the previous quarter, and up from $5.32 billion during the same quarter last year.  Loan and lease portfolio balances, including the higher risk loans outstanding, are summarized in Table 9.
 
Deposit generation continued to remain strong during the fourth quarter of 2011, increasing to $10.59 billion at December 31, 2011, up from $10.01 billion at September 30, 2011, and up from $9.89 billion at December 31, 2010.  Average total deposits were $10.16 billion in the fourth quarter of 2011, higher than average deposits of $9.87 billion during the previous quarter, and up from average deposits of $9.68 billion during the same quarter last year.
 
As a result of the strong deposit growth, which exceeded loan growth during the fourth quarter, the investment portfolio grew to $7.11 billion at year-end 2011, compared to $6.97 billion at September 30, 2011 and $6.66 billion at December 31, 2010.   The Company’s municipal bond portfolio increased by $247 million during the fourth quarter of 2011, which represents 6.0 percent of the total securities portfolio at December 31, 2011.  The investment portfolio remains largely comprised of securities issued by U. S. government agencies.
 
During the fourth quarter of 2011, the Company repurchased 702.3 thousand shares of common stock at a total cost of $29.1 million under its share repurchase program.  The average cost was $41.44 per share repurchased.  From January 3 through January 20, 2012, the Company repurchased an additional 70.0 thousand shares of common stock at an average cost of $46.28 per share repurchased.  From the beginning of the share repurchase program initiated during July 2001 through December 31, 2011, the Company has repurchased 48.5 million shares and returned over $1.7 billion to shareholders at an average cost of $35.98 per share.  Remaining buyback authority under the share repurchase program was $74.0 million at December 31, 2011.
 
Total shareholders’ equity was $1.00 billion at December 31, 2011, down slightly from $1.02 billion at September 30, 2011 and $1.01 billion at December 31, 2010.  The ratio of tangible common equity to risk-weighted assets was 17.93 percent at December 31, 2011, compared with 18.90 percent at September 30, 2011 and 19.29 percent at December 31, 2010.  The Tier 1 leverage ratio at December 31, 2011 was 6.73 percent, down from 6.95 percent at September 30, 2011 and 7.15 percent at December 31, 2010.
 
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 March 14, 2012 to shareholders of record at the close of business on February 29, 2012.
 
Hawaii Economy
 
Hawaii’s economy continued to slowly recover during the fourth quarter of 2011 due to increasing visitor arrivals and spending.  For the first 11 months of 2011, total visitor arrivals increased 3.4 percent compared to the same period in 2010.  Total visitor spending for the first 11 months of 2011 increased 15.1 percent compared to the same period last year primarily due to strong spending growth from international visitors from the Asia-Pacific region, Canada, Australia, and New Zealand.  Hotel occupancy continued to improve and revenue per available room reflects signs of improvement.  Overall, employment continues to be stable.  The statewide unemployment rate remains significantly below the national average at 6.5 percent for the month of November.  More information on current Hawaii economic trends is presented in Table 14.
 
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Bank of Hawaii Corporation 2011 Financial Results	 	Page 5	
 
Conference Call Information
 
The Company will review its 2011 financial results today at 8:00 a.m. Hawaii Time (1:00 p.m. Eastern Time).  The call will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation’s web site,  www.boh.com .  The conference call number for participants in the United States is 800-901-5231.  International participants should call 617-786-2961.  Use the pass code “Bank of Hawaii” to access the call.  A replay of the conference call will be available for one week beginning Monday, January 23, 2012 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the number 83186423 when prompted.  A replay will also be available via the Investor Relations link of 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, 2010, which was filed with the U.S. Securities and Exchange Commission.  We do not promise 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 .
 
# # # #

 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Bank of Hawaii Corporation and Subsidiaries	 	 	 	 	 	
Financial Highlights	 	 	Table 1a	 	 	
 	 	Three Months Ended	 	 	Year Ended	 	 	
 	 	December 31,	 	 	September 30,	 	 	December 31,	 	 	December 31,	 	 	
(dollars in thousands, except per share amounts)	 	2011	 	 	2011	 	 	2010	 	 	2011	 	 	2010	 	 	
For the Period:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Results	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	96,246	 	 	$	96,766	 	 	$	96,273	 	 	$	390,208	 	 	$	406,480	 	 	
Provision for Credit Losses	 	2,219	 	 	2,180	 	 	5,278	 	 	12,690	 	 	55,287	 	 	
Total Noninterest Income	 	43,407	 	 	50,863	 	 	51,477	 	 	197,655	 	 	255,258	 	 	
Total Noninterest Expense	 	84,382	 	 	83,955	 	 	88,722	 	 	348,193	 	 	346,236	 	 	
Net Income	 	39,229	 	 	43,306	 	 	40,578	 	 	160,043	 	 	183,942	 	 	
Basic Earnings Per Share	 	0.85	 	 	0.93	 	 	0.84	 	 	3.40	 	 	3.83	 	 	
Diluted Earnings Per Share	 	0.85	 	 	0.92	 	 	0.84	 	 	3.39	 	 	3.80	 	 	
Dividends Declared Per Share	 	0.45	 	 	0.45	 	 	0.45	 	 	1.80	 	 	1.80	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.17	 	%	1.31	 	%	1.24	 	%	1.22	 	%	1.45	 	%	
Return on Average Shareholders’ Equity	 	15.23	 	 	16.80	 	 	15.08	 	 	15.69	 	 	18.16	 	 	
Efficiency Ratio1	 	60.42	 	 	56.87	 	 	60.05	 	 	59.23	 	 	52.32	 	 	
Net Interest Margin2	 	3.04	 	 	3.09	 	 	3.15	 	 	3.13	 	 	3.41	 	 	
Dividend Payout Ratio3	 	52.94	 	 	48.39	 	 	53.57	 	 	52.94	 	 	47.00	 	 	
Average Shareholders’ Equity to Average Assets	 	7.65	 	 	7.79	 	 	8.23	 	 	7.78	 	 	7.98	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Balances	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases	 	$	5,420,352	 	 	$	5,340,406	 	 	$	5,317,815	 	 	$	5,349,938	 	 	$	5,472,534	 	 	
Average Assets	 	13,357,646	 	 	13,125,077	 	 	12,964,973	 	 	13,105,029	 	 	12,687,717	 	 	
Average Deposits	 	10,160,392	 	 	9,871,750	 	 	9,677,452	 	 	9,924,697	 	 	9,509,130	 	 	
Average Shareholders’ Equity	 	1,022,012	 	 	1,022,585	 	 	1,067,429	 	 	1,020,065	 	 	1,012,746	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Market Price Per Share of Common Stock	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Closing	 	$	44.49	 	 	$	36.40	 	 	$	47.21	 	 	$	44.49	 	 	$	47.21	 	 	
High	 	45.13	 	 	47.10	 	 	48.27	 	 	49.26	 	 	54.10	 	 	
Low	 	34.50	 	 	35.30	 	 	42.94	 	 	34.50	 	 	41.60	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	December 31,	 	 	September 30,	 	 	December 31,	 	 	
 	 	 	 	 	 	 	 	2011	 	 	2011	 	 	2010	 	 	
As of Period End:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	 	 	 	 	 	 	$	5,538,304	 	 	$	5,348,472	 	 	$	5,335,792	 	 	
Total Assets	 	 	 	 	 	 	 	13,846,391	 	 	13,304,758	 	 	13,126,787	 	 	
Total Deposits	 	 	 	 	 	 	 	10,592,623	 	 	10,009,013	 	 	9,888,995	 	 	
Long-Term Debt	 	 	 	 	 	 	 	30,696	 	 	30,705	 	 	32,652	 	 	
Total Shareholders’ Equity	 	 	 	 	 	 	 	1,002,667	 	 	1,017,775	 	 	1,011,133	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asset Quality	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	 	 	 	 	 	 	$	138,606	 	 	$	143,410	 	 	$	147,358	 	 	
Non-Performing Assets	 	 	 	 	 	 	 	40,790	 	 	37,770	 	 	37,786	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Financial Ratios	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance to Loans and Leases Outstanding	 	 	 	 	 	 	 	2.50	 	%	2.68	 	%	2.76	 	%	
Tier 1 Capital Ratio	 	 	 	 	 	 	 	16.68	 	 	17.57	 	 	18.28	 	 	
Total Capital Ratio	 	 	 	 	 	 	 	17.95	 	 	18.83	 	 	19.55	 	 	
Tier 1 Leverage Ratio	 	 	 	 	 	 	 	6.73	 	 	6.95	 	 	7.15	 	 	
Total Shareholders’ Equity to Total Assets	 	 	 	 	 	 	 	7.24	 	 	7.65	 	 	7.70	 	 	
Tangible Common Equity to Tangible Assets4	 	 	 	 	 	 	 	7.03	 	 	7.43	 	 	7.48	 	 	
Tangible Common Equity to Risk-Weighted Assets 4	 	 	 	 	 	 	 	17.93	 	 	18.90	 	 	19.29	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-Financial Data	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Full-Time Equivalent Employees	 	 	 	 	 	 	 	2,370	 	 	2,381	 	 	2,399	 	 	
Branches and Offices	 	 	 	 	 	 	 	81	 	 	82	 	 	82	 	 	
ATMs	 	 	 	 	 	 	 	506	 	 	508	 	 	502	 	 	

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	 	
 	 	December 31,	 	September 30,	 	December 31,	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	
Total Shareholders’ Equity	 	$	1,002,667	 	$	1,017,775	 	$	1,011,133	 	
Less: Goodwill	 	31,517	 	31,517	 	31,517	 	
Intangible Assets	 	83	 	96	 	154	 	
Tangible Common Equity	 	$	971,067	 	$	986,162	 	$	979,462	 	
 	 	 	 	 	 	 	 	
Total Assets	 	$	13,846,391	 	$	13,304,758	 	$	13,126,787	 	
Less: Goodwill	 	31,517	 	31,517	 	31,517	 	
Intangible Assets	 	83	 	96	 	154	 	
Tangible Assets	 	$	13,814,791	 	$	13,273,145	 	$	13,095,116	 	
 	 	 	 	 	 	 	 	
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements	 	$	5,414,481	 	$	5,218,651	 	$	5,076,909	 	
 	 	 	 	 	 	 	 	
Total Shareholders’ Equity to Total Assets	 	7.24%	 	7.65%	 	7.70%	 	
Tangible Common Equity to Tangible Assets (Non-GAAP)	 	7.03%	 	7.43%	 	7.48%	 	
 	 	 	 	 	 	 	 	
Tier 1 Capital Ratio	 	16.68%	 	17.57%	 	18.28%	 	
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)	 	17.93%	 	18.90%	 	19.29%	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	
Net Significant Income (Expense) Items	 	 	Table 2	 	

 	 	Three Months Ended	 	Year Ended	 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
 	 	 	 	 	 	 	 	 	 	 	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	2011	 	2010	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Cash Basis Interest Recoveries	 	$	-    	 	$	-    	 	$	-    	 	$	-    	 	$	2,832	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Investment Securities Gains, Net	 	-    	 	-    	 	-    	 	6,366	 	42,848	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Gain on Mutual Fund Sale	 	-    	 	1,956	 	-    	 	1,956	 	2,852	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Gains (Loss) on Disposal of Leased Equipment	 	-    	 	-    	 	-    	 	-    	 	(260	)	
 	 	 	 	 	 	 	 	 	 	 	 	
Gain on Sale of Insurance Subsidiary	 	-    	 	-    	 	-    	 	-    	 	904	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Decrease (Increase) in Allowance for Loan and Lease Losses	 	4,804	 	1,566	 	-    	 	8,752	 	(3,700	)	
 	 	 	 	 	 	 	 	 	 	 	 	
Employee Incentive Awards	 	-    	 	-    	 	(1,949	)	-    	 	(1,949	)	
 	 	 	 	 	 	 	 	 	 	 	 	
Cash Grants for the Purchase of Company Stock	 	-    	 	-    	 	(196	)	-    	 	(3,446	)	
 	 	 	 	 	 	 	 	 	 	 	 	
Settlement Gain on the Extinguishment of Retiree Life Insurance Obligation	 	-    	 	-    	 	951	 	-    	 	951	 	
 	 	 	 	 	 	 	 	 	 	 	 	
PC Refresh	 	-    	 	-    	 	(1,192	)	-    	 	(1,192	)	
 	 	 	 	 	 	 	 	 	 	 	 	
Settlement Related to Overdraft Claims	 	-    	 	-    	 	-    	 	(9,000	)	-    	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Bank of Hawaii Charitable Foundation	 	-    	 	(2,000	)	(1,000	)	(2,000	)	(1,000	)	
 	 	 	 	 	 	 	 	 	 	 	 	
Gain on Sale of Foreclosed Real Estate	 	-    	 	-    	 	1,343	 	-    	 	1,343	 	
 	 	 	 	 	 	 	 	 	 	 	 	
REPO Early Termination Expense	 	-    	 	-    	 	-    	 	-    	 	(5,189	)	
 	 	 	 	 	 	 	 	 	 	 	 	
Significant Income (Expense) Items Before the Provision (Benefit) for Income Taxes	 	4,804	 	1,522	 	(2,043	)	6,074	 	34,994	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Income Taxes Impact Related to Lease Transactions	 	-    	 	-    	 	-    	 	-    	 	(3,541	)	
 	 	 	 	 	 	 	 	 	 	 	 	
Income Tax Impact	 	1,681	 	533	 	(715	)	2,126	 	12,340	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Net Significant Income (Expense) Items	 	$	3,123	 	$	989	 	$	(1,328	)	$	3,948	 	$	26,195	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
 	 	 	
Consolidated Statements of Income	 	Table 3	
 
 	 	Three Months Ended	 	Year Ended	 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
 	 	 	 	 	 	 	 	 	 	 	 	
(dollars in thousands, except per share amounts)	 	2011	 	2011	 	2010	 	2011	 	2010	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	64,760	 	$	65,344	 	$	67,915	 	$	262,239	 	$	287,381	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	19,107	 	23,097	 	39,546	 	103,363	 	169,151	 	
Held-to-Maturity	 	23,608	 	20,344	 	1,388	 	72,138	 	6,504	 	
Deposits	 	2	 	6	 	7	 	8	 	28	 	
Funds Sold	 	120	 	160	 	160	 	828	 	1,076	 	
Other	 	280	 	279	 	279	 	1,117	 	1,111	 	
Total Interest Income	 	107,877	 	109,230	 	109,295	 	439,693	 	465,251	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	3,736	 	4,561	 	5,918	 	18,321	 	29,196	 	
Securities Sold Under Agreements to Repurchase	 	7,392	 	7,400	 	6,425	 	29,171	 	25,996	 	
Funds Purchased	 	5	 	4	 	7	 	20	 	30	 	
Long-Term Debt	 	498	 	499	 	672	 	1,973	 	3,549	 	
Total Interest Expense	 	11,631	 	12,464	 	13,022	 	49,485	 	58,771	 	
Net Interest Income	 	96,246	 	96,766	 	96,273	 	390,208	 	406,480	 	
Provision for Credit Losses	 	2,219	 	2,180	 	5,278	 	12,690	 	55,287	 	
Net Interest Income After Provision for Credit Losses	 	94,027	 	94,586	 	90,995	 	377,518	 	351,193	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	11,025	 	10,788	 	11,190	 	45,046	 	44,889	 	
Mortgage Banking	 	3,401	 	5,480	 	4,549	 	14,664	 	18,576	 	
Service Charges on Deposit Accounts	 	9,606	 	9,820	 	11,632	 	38,733	 	53,039	 	
Fees, Exchange, and Other Service Charges	 	12,401	 	16,219	 	15,196	 	60,227	 	61,006	 	
Investment Securities Gains (Losses), Net	 	282	 	-    	 	(1	)	6,366	 	42,848	 	
Insurance	 	2,312	 	2,664	 	2,309	 	10,957	 	9,961	 	
Other	 	4,380	 	5,892	 	6,602	 	21,662	 	24,939	 	
Total Noninterest Income	 	43,407	 	50,863	 	51,477	 	197,655	 	255,258	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	44,927	 	44,307	 	46,809	 	182,816	 	185,713	 	
Net Occupancy	 	11,253	 	11,113	 	10,504	 	43,169	 	40,988	 	
Net Equipment	 	4,748	 	4,662	 	5,902	 	18,849	 	19,371	 	
Professional Fees	 	1,926	 	2,245	 	2,116	 	8,623	 	7,104	 	
FDIC Insurance	 	2,027	 	2,065	 	3,198	 	9,346	 	12,564	 	
Other	 	19,501	 	19,563	 	20,193	 	85,390	 	80,496	 	
Total Noninterest Expense	 	84,382	 	83,955	 	88,722	 	348,193	 	346,236	 	
Income Before Provision for Income Taxes	 	53,052	 	61,494	 	53,750	 	226,980	 	260,215	 	
Provision for Income Taxes	 	13,823	 	18,188	 	13,172	 	66,937	 	76,273	 	
Net Income	 	$	39,229	 	$	43,306	 	$	40,578	 	$	160,043	 	$	183,942	 	
Basic Earnings Per Share	 	$	0.85	 	$	0.93	 	$	0.84	 	$	3.40	 	$	3.83	 	
Diluted Earnings Per Share	 	$	0.85	 	$	0.92	 	$	0.84	 	$	3.39	 	$	3.80	 	
Dividends Declared Per Share	 	$	0.45	 	$	0.45	 	$	0.45	 	$	1.80	 	$	1.80	 	
Basic Weighted Average Shares	 	46,195,147	 	46,806,439	 	48,034,234	 	47,064,925	 	48,055,025	 	
Diluted Weighted Average Shares	 	46,324,734	 	46,934,140	 	48,275,474	 	47,224,981	 	48,355,965	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
 	 	 	
Consolidated Statements of Condition	 	Table 4	
 
 	 	December 31,	 	September 30,	 	December 31,	 	
 	 	 	 	 	 	 	 	 	 	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	
Assets	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	3,036	 	$	3,543	 	$	3,472	 	
Funds Sold	 	512,384	 	242,062	 	438,327	 	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	3,451,885	 	4,448,898	 	6,533,874	 	
Held-to-Maturity (Fair Value of $3,754,206; $2,610,081; and $134,028)	 	3,657,796	 	2,520,422	 	127,249	 	
Loans Held for Sale	 	18,957	 	12,745	 	17,564	 	
Loans and Leases	 	5,538,304	 	5,348,472	 	5,335,792	 	
Allowance for Loan and Lease Losses	 	(138,606	)	(143,410	)	(147,358	)	
Net Loans and Leases	 	5,399,698	 	5,205,062	 	5,188,434	 	
Total Earning Assets	 	13,043,756	 	12,432,732	 	12,308,920	 	
Cash and Noninterest-Bearing Deposits	 	154,489	 	206,875	 	165,748	 	
Premises and Equipment	 	103,550	 	104,509	 	108,170	 	
Customers’ Acceptances	 	476	 	749	 	437	 	
Accrued Interest Receivable	 	43,510	 	43,319	 	41,151	 	
Foreclosed Real Estate	 	3,042	 	3,341	 	1,928	 	
Mortgage Servicing Rights	 	24,279	 	23,990	 	25,379	 	
Goodwill	 	31,517	 	31,517	 	31,517	 	
Other Assets	 	441,772	 	457,726	 	443,537	 	
Total Assets	 	$	13,846,391	 	$	13,304,758	 	$	13,126,787	 	
 	 	 	 	 	 	 	 	
Liabilities	 	 	 	 	 	 	 	
Deposits	 	 	 	 	 	 	 	
Noninterest-Bearing Demand	 	$	2,850,923	 	$	2,702,296	 	$	2,447,713	 	
Interest-Bearing Demand	 	2,005,983	 	1,745,812	 	1,871,718	 	
Savings	 	4,398,638	 	4,449,351	 	4,526,893	 	
Time	 	1,337,079	 	1,111,554	 	1,042,671	 	
Total Deposits	 	10,592,623	 	10,009,013	 	9,888,995	 	
Funds Purchased	 	10,791	 	9,882	 	9,478	 	
Short-Term Borrowings	 	-    	 	6,400	 	6,200	 	
Securities Sold Under Agreements to Repurchase	 	1,925,998	 	1,929,266	 	1,901,084	 	
Long-Term Debt	 	30,696	 	30,705	 	32,652	 	
Banker’s Acceptances	 	476	 	749	 	437	 	
Retirement Benefits Payable	 	46,949	 	30,704	 	30,885	 	
Accrued Interest Payable	 	5,330	 	6,751	 	5,007	 	
Taxes Payable and Deferred Taxes	 	95,840	 	114,842	 	121,517	 	
Other Liabilities	 	135,021	 	148,671	 	119,399	 	
Total Liabilities	 	12,843,724	 	12,286,983	 	12,115,654	 	
Shareholders’ Equity	 	 	 	 	 	 	 	
Common Stock ($.01 par value; authorized 500,000,000 shares;	 	 	 	 	 	 	 	
issued / outstanding: December 31, 2011 - 57,134,470 / 45,947,116;	 	 	 	 	 	 	 	
September 30, 2011 - 57,132,310 / 46,570,413;	 	 	 	 	 	 	 	
and December 31, 2010 - 57,115,287 / 48,097,672)	 	571	 	571	 	570	 	
Capital Surplus	 	507,558	 	503,255	 	500,888	 	
Accumulated Other Comprehensive Income	 	35,263	 	46,754	 	26,965	 	
Retained Earnings	 	1,003,938	 	986,202	 	932,629	 	
Treasury Stock, at Cost (Shares: December 31, 2011 - 11,187,354;	 	 	 	 	 	 	 	
September 30, 2011 - 10,561,897; and December 31, 2010 - 9,017,615)	 	(544,663	)	(519,007	)	(449,919	)	
Total Shareholders’ Equity	 	1,002,667	 	1,017,775	 	1,011,133	 	
Total Liabilities and Shareholders’ Equity	 	$	13,846,391	 	$	13,304,758	 	$	13,126,787	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
 	 	 	
Consolidated Statements of Shareholders’ Equity	 	Table 5	
 
 	 	 	 	 	 	 	 	Accum.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Other	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Comprehensive	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Common	 	Capital	 	Income	 	Retained	 	Treasury	 	Comprehensive	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(dollars in thousands)	 	Total	 	Stock	 	Surplus	 	(Loss)	 	Earnings	 	Stock	 	Income	 	
Balance as of December 31, 2009	 	$	895,973	 	$	569	 	$	494,318	 	$	6,925	 	$	843,521	 	$	(449,360)	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	183,942	 	-	 	-	 	-	 	183,942	 	-	 	  $	183,942	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Unrealized Gains on Investment Securities,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net of Reclassification Adjustment	 	20,231	 	-	 	-	 	20,231	 	-	 	-	 	20,231	 	
Settlement Gain Related to Defined Benefit Plan	 	(608)	 	-	 	-	 	(608)	 	-	 	-	 	(608)	 	
Net Gains related to Defined Benefit Plans	 	417	 	-	 	-	 	417	 	-	 	-	 	417	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	  $	203,982	 	
Share-Based Compensation	 	3,841	 	-	 	3,841	 	-	 	-	 	-	 	 	 	
Common Stock Issued under Purchase and Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Compensation Plans and Related Tax Benefits (617,345 shares)	 	19,141	 	1	 	2,729	 	-	 	(8,011)	 	24,422	 	 	 	
Common Stock Repurchased (538,616 shares)	 	(24,981)	 	-	 	-	 	-	 	-	 	(24,981)	 	 	 	
Cash Dividends Paid ($1.80 per share)	 	(86,823)	 	-	 	-	 	-	 	(86,823)	 	-	 	 	 	
Balance as of December 31, 2010	 	$	1,011,133	 	$	570	 	$	500,888	 	$	26,965	 	$	932,629	 	$	(449,919)	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	160,043	 	-	 	-	 	-	 	160,043	 	-	 	  $	160,043	 	
Other Comprehensive Income, Net of Tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Unrealized Gains on Investment Securities,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net of Reclassification Adjustment	 	16,411	 	-	 	-	 	16,411	 	-	 	-	 	16,411	 	
Net Losses related to Defined Benefit Plans	 	(8,113)	 	-	 	-	 	(8,113)	 	-	 	-	 	(8,113)	 	
Total Comprehensive Income	 	 	 	 	 	 	 	 	 	 	 	 	 	  $	168,341	 	
Share-Based Compensation	 	6,216	 	-	 	6,216	 	-	 	-	 	-	 	 	 	
Common Stock Issued under Purchase and Equity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Compensation Plans and Related Tax Benefits (389,470 shares)	 	13,412	 	1	 	454	 	-	 	(3,843)	 	16,800	 	 	 	
Common Stock Repurchased (2,540,026 shares)	 	(111,544)	 	-	 	-	 	-	 	-	 	(111,544)	 	 	 	
Cash Dividends Paid ($1.80 per share)	 	(84,891)	 	-	 	-	 	-	 	(84,891)	 	-	 	 	 	
Balance as of December 31, 2011	 	$	1,002,667	 	$	571	 	$	507,558	 	$	35,263	 	$	1,003,938	 	$	(544,663)	 	 	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
 	 	 	
Average Balances and Interest Rates - Taxable Equivalent Basis	 	Table 6a	
 
 	 	Three Months Ended	 	Three Months Ended	 	Three Months Ended	 	
 	 	 	 	 	 	 	 	
 	 	December 31, 2011	 	September 30, 2011	 	December 31, 2010	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	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	 	$	3.9	 	  $	-   	 	0.23	  %	 $	3.7	 	  $	-   	 	0.56	  %	 $	3.2	 	  $	-   	 	0.81	  %	
Funds Sold	 	239.0	 	0.1	 	0.20	 	309.4	 	0.2	 	0.20	 	211.4	 	0.2	 	0.30	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	3,763.7	 	19.9	 	2.12	 	4,309.3	 	23.5	 	2.18	 	6,468.5	 	39.8	 	2.46	 	
Held-to-Maturity	 	3,259.8	 	23.6	 	2.90	 	2,511.0	 	20.3	 	3.24	 	134.8	 	1.4	 	4.12	 	
Loans Held for Sale	 	14.7	 	0.2	 	4.73	 	9.2	 	0.1	 	4.87	 	13.2	 	0.1	 	4.77	 	
Loans and Leases1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	798.3	 	8.0	 	3.99	 	815.5	 	8.2	 	3.97	 	752.7	 	7.8	 	4.13	 	
Commercial Mortgage	 	929.0	 	10.9	 	4.66	 	876.7	 	10.7	 	4.85	 	838.0	 	10.5	 	5.00	 	
Construction	 	85.7	 	1.1	 	4.84	 	74.5	 	1.0	 	5.15	 	86.1	 	1.1	 	5.09	 	
Commercial Lease Financing	 	311.0	 	2.1	 	2.68	 	314.6	 	2.0	 	2.61	 	352.6	 	2.3	 	2.57	 	
Residential Mortgage	 	2,163.1	 	27.3	 	5.05	 	2,129.8	 	27.8	 	5.23	 	2,078.1	 	28.4	 	5.46	 	
Home Equity	 	778.1	 	9.0	 	4.57	 	780.5	 	9.3	 	4.72	 	821.3	 	10.3	 	4.95	 	
Automobile	 	190.7	 	3.1	 	6.40	 	191.4	 	3.2	 	6.66	 	214.4	 	4.0	 	7.38	 	
Other2	 	164.5	 	3.2	 	7.76	 	157.4	 	3.0	 	7.50	 	174.6	 	3.4	 	7.68	 	
Total Loans and Leases	 	5,420.4	 	64.7	 	4.75	 	5,340.4	 	65.2	 	4.86	 	5,317.8	 	67.8	 	5.07	 	
Other	 	79.9	 	0.3	 	1.40	 	79.9	 	0.3	 	1.40	 	79.9	 	0.3	 	1.39	 	
Total Earning Assets3	 	12,781.4	 	108.8	 	3.40	 	12,562.9	 	109.6	 	3.48	 	12,228.8	 	109.6	 	3.57	 	
Cash and Noninterest-Bearing Deposits	 	142.2	 	 	 	 	 	135.1	 	 	 	 	 	240.3	 	 	 	 	 	
Other Assets	 	434.0	 	 	 	 	 	427.1	 	 	 	 	 	495.9	 	 	 	 	 	
Total Assets	 	$	13,357.6	 	 	 	 	 	 $	 13,125.1	 	 	 	 	 	$	12,965.0	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,799.9	 	0.1	 	0.03	 	 $	1,772.5	 	0.2	 	0.04	 	 $	1,769.4	 	0.2	 	0.06	 	
Savings	 	4,447.8	 	1.4	 	0.13	 	4,497.1	 	1.8	 	0.16	 	4,486.7	 	2.6	 	0.23	 	
Time	 	1,145.4	 	2.2	 	0.76	 	1,069.4	 	2.6	 	0.96	 	1,050.9	 	3.1	 	1.18	 	
Total Interest-Bearing Deposits	 	7,393.1	 	3.7	 	0.20	 	7,339.0	 	4.6	 	0.25	 	7,307.0	 	5.9	 	0.32	 	
Short-Term Borrowings	 	20.4	 	-   	 	0.08	 	19.0	 	-   	 	0.08	 	20.1	 	-   	 	0.14	 	
Securities Sold Under Agreements to Repurchase	 	1,848.9	 	7.4	 	1.57	 	1,908.9	 	7.4	 	1.52	 	1,774.8	 	6.4	 	1.42	 	
Long-Term Debt	 	30.7	 	0.5	 	6.49	 	30.7	 	0.5	 	6.50	 	40.0	 	0.7	 	6.72	 	
Total Interest-Bearing Liabilities	 	9,293.1	 	11.6	 	0.49	 	9,297.6	 	12.5	 	0.53	 	9,141.9	 	13.0	 	0.56	 	
Net Interest Income	 	 	 	  $	97.2	 	 	 	 	 	  $	97.1	 	 	 	 	 	  $	96.6	 	 	 	
Interest Rate Spread	 	 	 	 	 	2.91	  %	 	 	 	 	2.95	  %	 	 	 	 	3.01	  %	
Net Interest Margin	 	 	 	 	 	3.04	  %	 	 	 	 	3.09	  %	 	 	 	 	3.15	  %	
Noninterest-Bearing Demand Deposits	 	2,767.3	 	 	 	 	 	2,532.8	 	 	 	 	 	2,370.5	 	 	 	 	 	
Other Liabilities	 	275.2	 	 	 	 	 	272.1	 	 	 	 	 	385.2	 	 	 	 	 	
Shareholders’ Equity	 	1,022.0	 	 	 	 	 	1,022.6	 	 	 	 	 	1,067.4	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	13,357.6	 	 	 	 	 	 $	 13,125.1	 	 	 	 	 	$	12,965.0	 	 	 	 	 	

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 $938,000, $364,000, and $300,000 for the three months ended December 31, 2011, September 30, 2011, and December 31, 2010, respectively.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
 	 	 	
Average Balances and Interest Rates - Taxable Equivalent Basis	 	Table 6b	
 
 	 	Year Ended	 	 	Year Ended	 	
 	 	 	 	 	 	 	
 	 	December 31, 2011	 	 	December 31, 2010	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Average	 	 	Income/	 	 	Yield/	 	 	Average	 	 	Income/	 	Yield/	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(dollars in millions)	 	Balance	 	 	Expense	 	 	Rate	 	 	Balance	 	 	Expense	 	Rate	 	
Earning Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	$	4.2	 	 	$	-    	 	 	0.19	  %	 	$	4.7	 	 	$	-    	 	0.59	  %	
Funds Sold	 	380.2	 	 	0.8	 	 	0.22	 	 	390.2	 	 	1.1	 	0.28	 	
Investment Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	4,439.8	 	 	105.4	 	 	2.37	 	 	5,854.1	 	 	170.1	 	2.91	 	
Held-to-Maturity	 	2,279.6	 	 	72.2	 	 	3.16	 	 	154.2	 	 	6.5	 	4.22	 	
Loans Held for Sale	 	11.0	 	 	0.5	 	 	4.54	 	 	10.8	 	 	0.9	 	8.51	 	
Loans and Leases1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	790.6	 	 	31.8	 	 	4.02	 	 	764.2	 	 	33.7	 	4.41	 	
Commercial Mortgage	 	887.1	 	 	42.8	 	 	4.82	 	 	827.7	 	 	42.0	 	5.07	 	
Construction	 	80.1	 	 	4.0	 	 	5.06	 	 	95.4	 	 	4.8	 	5.08	 	
Commercial Lease Financing	 	322.1	 	 	8.7	 	 	2.71	 	 	385.1	 	 	11.3	 	2.92	 	
Residential Mortgage	 	2,126.9	 	 	111.5	 	 	5.24	 	 	2,105.6	 	 	118.7	 	5.64	 	
Home Equity	 	784.9	 	 	37.4	 	 	4.76	 	 	863.7	 	 	43.2	 	4.99	 	
Automobile	 	194.4	 	 	13.2	 	 	6.78	 	 	241.2	 	 	18.3	 	7.58	 	
Other2	 	163.8	 	 	12.4	 	 	7.57	 	 	189.6	 	 	14.5	 	7.66	 	
Total Loans and Leases	 	5,349.9	 	 	261.8	 	 	4.89	 	 	5,472.5	 	 	286.5	 	5.23	 	
Other	 	79.9	 	 	1.1	 	 	1.40	 	 	79.8	 	 	1.1	 	1.39	 	
Total Earning Assets3	 	12,544.6	 	 	441.8	 	 	3.52	 	 	11,966.3	 	 	466.2	 	3.90	 	
Cash and Noninterest-Bearing Deposits	 	135.3	 	 	 	 	 	 	 	 	229.6	 	 	 	 	 	 	
Other Assets	 	425.1	 	 	 	 	 	 	 	 	491.8	 	 	 	 	 	 	
Total Assets	 	$	13,105.0	 	 	 	 	 	 	 	 	$	12,687.7	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Demand	 	$	1,786.7	 	 	0.7	 	 	0.04	 	 	$	1,715.8	 	 	1.1	 	0.06	 	
Savings	 	4,501.0	 	 	7.3	 	 	0.16	 	 	4,465.0	 	 	14.7	 	0.33	 	
Time	 	1,067.8	 	 	10.3	 	 	0.96	 	 	1,088.7	 	 	13.4	 	1.23	 	
Total Interest-Bearing Deposits	 	7,355.5	 	 	18.3	 	 	0.25	 	 	7,269.5	 	 	29.2	 	0.40	 	
Short-Term Borrowings	 	18.2	 	 	-    	 	 	0.11	 	 	23.3	 	 	-    	 	0.13	 	
Securities Sold Under Agreements to Repurchase	 	1,845.8	 	 	29.2	 	 	1.58	 	 	1,700.2	 	 	26.0	 	1.53	 	
Long-Term Debt	 	31.6	 	 	2.0	 	 	6.23	 	 	61.0	 	 	3.5	 	5.81	 	
Total Interest-Bearing Liabilities	 	9,251.1	 	 	49.5	 	 	0.53	 	 	9,054.0	 	 	58.7	 	0.65	 	
Net Interest Income	 	 	 	 	$	392.3	 	 	 	 	 	 	 	 	$	407.5	 	 	 	
Interest Rate Spread	 	 	 	 	 	 	 	2.99	  %	 	 	 	 	 	 	3.25	  %	
Net Interest Margin	 	 	 	 	 	 	 	3.13	  %	 	 	 	 	 	 	3.41	  %	
Noninterest-Bearing Demand Deposits	 	2,569.2	 	 	 	 	 	 	 	 	2,239.6	 	 	 	 	 	 	
Other Liabilities	 	264.6	 	 	 	 	 	 	 	 	381.4	 	 	 	 	 	 	
Shareholders’ Equity	 	1,020.1	 	 	 	 	 	 	 	 	1,012.7	 	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	13,105.0	 	 	 	 	 	 	 	 	$	12,687.7	 	 	 	 	 	 	

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 $2,080,000 and $975,000 for the year ended December 31, 2011 and 2010, respectively.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
 	 	 	
Analysis of Change in Net Interest Income - Taxable Equivalent Basis	 	Table 7a	
 
 	 	Three Months Ended December 31, 2011	 	
 	 	 	 	
 	 	Compared to September 30, 2011	 	
 	 	 	 	 	 	 	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	(0.1	)	$	-    	 	$	(0.1	)	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	(2.9	)	(0.7	)	(3.6	)	
Held-to-Maturity	 	5.6	 	(2.3	)	3.3	 	
Loans Held for Sale	 	0.1	 	-    	 	0.1	 	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	(0.2	)	-    	 	(0.2	)	
Commercial Mortgage	 	0.6	 	(0.4	)	0.2	 	
Construction	 	0.2	 	(0.1	)	0.1	 	
Commercial Lease Financing	 	-    	 	0.1	 	0.1	 	
Residential Mortgage	 	0.4	 	(0.9	)	(0.5	)	
Home Equity	 	-    	 	(0.3	)	(0.3	)	
Automobile	 	-    	 	(0.1	)	(0.1	)	
Other2	 	0.1	 	0.1	 	0.2	 	
Total Loans and Leases	 	1.1	 	(1.6	)	(0.5	)	
Total Change in Interest Income	 	3.8	 	(4.6	)	(0.8	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	-    	 	(0.1	)	(0.1	)	
Savings	 	-    	 	(0.4	)	(0.4	)	
Time	 	0.1	 	(0.5	)	(0.4	)	
Total Interest-Bearing Deposits	 	0.1	 	(1.0	)	(0.9	)	
Securities Sold Under Agreements to Repurchase	 	(0.2	)	0.2	 	-    	 	
Total Change in Interest Expense	 	(0.1	)	(0.8	)	(0.9	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	3.9	 	$	(3.8	)	$	0.1	 	

1  The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume and rate for that category.
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 7b	
 
 	 	Three Months Ended December 31, 2011	 	
 	 	 	 	
 	 	Compared to December 31, 2010	 	
 	 	 	 	 	 	 	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	-    	 	$	(0.1	)	$	(0.1	)	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	(15.0	)	(4.9	)	(19.9	)	
Held-to-Maturity	 	22.7	 	(0.5	)	22.2	 	
Loans Held for Sale	 	0.1	 	-    	 	0.1	 	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	0.5	 	(0.3	)	0.2	 	
Commercial Mortgage	 	1.1	 	(0.7	)	0.4	 	
Commercial Lease Financing	 	(0.3	)	0.1	 	(0.2	)	
Residential Mortgage	 	1.1	 	(2.2	)	(1.1	)	
Home Equity	 	(0.5	)	(0.8	)	(1.3	)	
Automobile	 	(0.4	)	(0.5	)	(0.9	)	
Other2	 	(0.2	)	-    	 	(0.2	)	
Total Loans and Leases	 	1.3	 	(4.4	)	(3.1	)	
Total Change in Interest Income	 	9.1	 	(9.9	)	(0.8	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	-    	 	(0.1	)	(0.1	)	
Savings	 	(0.1	)	(1.1	)	(1.2	)	
Time	 	0.3	 	(1.2	)	(0.9	)	
Total Interest-Bearing Deposits	 	0.2	 	(2.4	)	(2.2	)	
Securities Sold Under Agreements to Repurchase	 	0.3	 	0.7	 	1.0	 	
Long-Term Debt	 	(0.1	)	(0.1	)	(0.2	)	
Total Change in Interest Expense	 	0.4	 	(1.8	)	(1.4	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	8.7	 	$	(8.1	)	$	0.6	 	

1  The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume and rate for that category.
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 7c	
 
 	 	Year Ended December 31, 2011	 	
 	 	 	 	
 	 	Compared to December 31, 2010	 	
 	 	 	 	 	 	 	 	
(dollars in millions)	 	Volume 1	 	Rate 1	 	Total	 	
Change in Interest Income:	 	 	 	 	 	 	 	
Funds Sold	 	$	-   	 	$	(0.3	)	$	(0.3	)	
Investment Securities	 	 	 	 	 	 	 	
Available-for-Sale	 	(36.5	)	(28.2	)	(64.7	)	
Held-to-Maturity	 	67.7	 	(2.0	)	65.7	 	
Loans Held for Sale	 	-   	 	(0.4	)	(0.4	)	
Loans and Leases	 	 	 	 	 	 	 	
Commercial and Industrial	 	1.1	 	(3.0	)	(1.9	)	
Commercial Mortgage	 	2.9	 	(2.1	)	0.8	 	
Construction	 	(0.8	)	-   	 	(0.8	)	
Commercial Lease Financing	 	(1.8	)	(0.8	)	(2.6	)	
Residential Mortgage	 	1.2	 	(8.4	)	(7.2	)	
Home Equity	 	(3.8	)	(2.0	)	(5.8	)	
Automobile	 	(3.3	)	(1.8	)	(5.1	)	
Other2	 	(1.9	)	(0.2	)	(2.1	)	
Total Loans and Leases	 	(6.4	)	(18.3	)	(24.7	)	
Total Change in Interest Income	 	24.8	 	(49.2	)	(24.4	)	
 	 	 	 	 	 	 	 	
Change in Interest Expense:	 	 	 	 	 	 	 	
Interest-Bearing Deposits	 	 	 	 	 	 	 	
Demand	 	-   	 	(0.4	)	(0.4	)	
Savings	 	0.1	 	(7.5	)	(7.4	)	
Time	 	(0.2	)	(2.9	)	(3.1	)	
Total Interest-Bearing Deposits	 	(0.1	)	(10.8	)	(10.9	)	
Securities Sold Under Agreements to Repurchase	 	2.3	 	0.9	 	3.2	 	
Long-Term Debt	 	(1.8	)	0.3	 	(1.5	)	
Total Change in Interest Expense	 	0.4	 	(9.6	)	(9.2	)	
 	 	 	 	 	 	 	 	
Change in Net Interest Income	 	$	24.4	 	$	(39.6	)	$	(15.2	)	

1 The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume and rate for that category.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
 	 	 	
Salaries and Benefits	 	Table 8	
 
 	 	Three Months Ended	 	Year Ended	 	
 	 	 	 	 	 	 	 	 	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
 	 	 	 	 	 	 	 	 	 	 	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	2011	 	2010	 	
Salaries	 	$	28,330	 	$	28,965	 	$	30,350	 	$	115,512	 	$	119,515	 	
Incentive Compensation	 	3,881	 	4,777	 	5,248	 	16,367	 	15,544	 	
Share-Based Compensation and Cash Grants for the Purchase of Company Stock	 	1,819	 	743	 	1,220	 	5,720	 	6,805	 	
Commission Expense	 	1,701	 	1,572	 	2,225	 	6,489	 	6,666	 	
Retirement and Other Benefits	 	4,429	 	3,634	 	3,564	 	16,829	 	15,708	 	
Payroll Taxes	 	2,030	 	2,241	 	2,033	 	10,645	 	10,084	 	
Medical, Dental, and Life Insurance	 	2,322	 	2,056	 	1,018	 	9,039	 	8,242	 	
Separation Expense	 	415	 	319	 	1,151	 	2,215	 	3,149	 	
Total Salaries and Benefits	 	$	44,927	 	$	44,307	 	$	46,809	 	$	182,816	 	$	185,713	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
 	 	 	
Loan and Lease Portfolio Balances	 	Table 9	
 
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
 	 	 	 	 	 	 	 	 	 	 	 	
(dollars in thousands)	 	2011	 	2011	 	2011	 	2011	 	2010	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	817,170	 	$	790,294	 	$	815,912	 	$	771,923	 	$	772,624	 	
Commercial Mortgage	 	938,250	 	922,075	 	872,283	 	883,360	 	863,385	 	
Construction	 	98,669	 	69,635	 	81,432	 	80,360	 	80,325	 	
Lease Financing	 	311,928	 	312,159	 	316,776	 	331,491	 	334,997	 	
Total Commercial	 	2,166,017	 	2,094,163	 	2,086,403	 	2,067,134	 	2,051,331	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	2,215,892	 	2,130,589	 	2,130,335	 	2,108,376	 	2,094,189	 	
Home Equity	 	780,691	 	775,105	 	783,582	 	787,179	 	807,479	 	
Automobile	 	192,506	 	191,497	 	191,739	 	196,649	 	209,008	 	
Other1	 	183,198	 	157,118	 	159,414	 	167,591	 	173,785	 	
Total Consumer	 	3,372,287	 	3,254,309	 	3,265,070	 	3,259,795	 	3,284,461	 	
Total Loans and Leases	 	$	5,538,304	 	$	5,348,472	 	$	5,351,473	 	$	5,326,929	 	$	5,335,792	 	

Higher Risk Loans Outstanding

 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
 	 	 	 	 	 	 	 	 	 	 	 	
(dollars in thousands)	 	2011	 	2011	 	2011	 	2011	 	2010	 	
Residential Home Building2	 	$	13,475	 	$	15,379	 	$	16,186	 	$	14,744	 	$	14,964	 	
Residential Land Loans3	 	18,163	 	18,305	 	19,960	 	21,595	 	23,745	 	
Home Equity Loans4	 	21,413	 	22,321	 	21,778	 	23,783	 	23,179	 	
Air Transportation5	 	36,144	 	36,511	 	36,961	 	37,440	 	37,879	 	
Total Higher Risk Loans	 	$	89,195	 	$	92,516	 	$	94,885	 	$	97,562	 	$	99,767	 	

1 Comprised of other revolving credit, installment, and lease financing.
2 Residential home building loans were $29.0 million as of December 31, 2011.  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. Residential Land Loans were revised from $18,285 as of September 30, 2011.
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

 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
 	 	 	 	 	 	 	 	 	 	 	 	
(dollars in thousands)	 	2011	 	2011	 	2011	 	2011	 	2010	 	
Consumer	 	$	5,241,827	 	$	5,137,548	 	$	5,073,101	 	$	5,097,056	 	$	5,082,802	 	
Commercial	 	4,320,712	 	4,275,915	 	4,165,435	 	4,326,495	 	4,292,108	 	
Public and Other	 	1,030,084	 	595,550	 	740,498	 	488,840	 	514,085	 	
Total Deposits	 	$	10,592,623	 	$	10,009,013	 	$	9,979,034	 	$	9,912,391	 	$	9,888,995	 	

 
Bank of Hawaii Corporation and Subsidiaries	 	
 	 	
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More	Table 10	
 
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
(dollars in thousands)	 	2011	 	2011	 	2011	 	2011	 	2010	 	
Non-Performing Assets1	 	 	 	 	 	 	 	 	 	 	 	
Non-Accrual Loans and Leases	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	6,243	 	$	6,593	 	$	1,839	 	$	1,107	 	$	1,642	 	
Commercial Mortgage	 	2,140	 	2,188	 	3,290	 	3,421	 	3,503	 	
Construction	 	2,080	 	-	 	288	 	288	 	288	 	
Lease Financing	 	5	 	6	 	8	 	9	 	19	 	
Total Commercial	 	10,468	 	8,787	 	5,425	 	4,825	 	5,452	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	25,256	 	23,779	 	23,970	 	24,372	 	28,152	 	
Home Equity	 	2,024	 	1,863	 	2,155	 	2,602	 	2,254	 	
Other2	 	-	 	-	 	16	 	-	 	-	 	
Total Consumer	 	27,280	 	25,642	 	26,141	 	26,974	 	30,406	 	
Total Non-Accrual Loans and Leases	 	37,748	 	34,429	 	31,566	 	31,799	 	35,858	 	
Foreclosed Real Estate	 	3,042	 	3,341	 	2,590	 	2,793	 	1,928	 	
Total Non-Performing Assets	 	$	40,790	 	$	37,770	 	$	34,156	 	$	34,592	 	$	37,786	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Accruing Loans and Leases Past Due 90 Days or More	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	$	1	 	$	-	 	$	-	 	$	-	 	$	-	 	
Total Commercial	 	1	 	-	 	-	 	-	 	-	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	6,422	 	7,664	 	5,854	 	3,614	 	5,399	 	
Home Equity	 	2,194	 	2,639	 	1,147	 	1,100	 	1,067	 	
Automobile	 	170	 	138	 	167	 	260	 	410	 	
Other2	 	435	 	414	 	604	 	578	 	707	 	
Total Consumer	 	9,221	 	10,855	 	7,772	 	5,552	 	7,583	 	
Total Accruing Loans and Leases Past Due 90 Days or More	 	$	9,222	 	$	10,855	 	$	7,772	 	$	5,552	 	$	7,583	 	
Restructured Loans on Accrual Status and Not Past Due 90 Days or More	 	$	33,703	 	$	33,140	 	$	28,193	 	$	29,513	 	$	23,724	 	
Total Loans and Leases	 	$	5,538,304	 	$	5,348,472	 	$	5,351,473	 	$	5,326,929	 	$	5,335,792	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	 	0.68%	 	0.64%	 	0.59%	 	0.60%	 	0.67%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets to Total Loans and Leases, Loans Held for Sale, and Foreclosed Real Estate	 	0.73%	 	0.70%	 	0.64%	 	0.65%	 	0.71%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases, Commercial Loans Held for Sale, and Commercial Foreclosed Real Estate	 	0.56%	 	0.52%	 	0.34%	 	0.31%	 	0.31%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate	 	0.85%	 	0.82%	 	0.83%	 	0.86%	 	0.95%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases, Loans Held for Sale, and Foreclosed Real Estate	 	0.90%	 	0.91%	 	0.78%	 	0.75%	 	0.85%	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Quarter to Quarter Changes in Non-Performing Assets1	 	 	 	 	 	 	 	 	 	 	 	
Balance at Beginning of Quarter	 	$	37,770	 	$	34,156	 	$	34,592	 	$	37,786	 	$	45,174	 	
Additions	 	8,653	 	8,552	 	6,079	 	5,591	 	7,042	 	
Reductions	 	 	 	 	 	 	 	 	 	 	 	
Payments	 	(1,173	)	(3,237	)	(2,363	)	(2,164	)	(5,019	)	
Return to Accrual Status	 	(2,421	)	(401	)	(3,226	)	(6,408	)	(1,250	)	
Sales of Foreclosed Real Estate	 	(1,320	)	(157	)	(497	)	-	 	(5,427	)	
Charge-offs/Write-downs	 	(719	)	(1,143	)	(429	)	(213	)	(2,734	)	
Total Reductions	 	(5,633	)	(4,938	)	(6,515	)	(8,785	)	(14,430	)	
Balance at End of Quarter	 	$	40,790	 	$	37,770	 	$	34,156	 	$	34,592	 	$	37,786	 	

1  Excluded from non-performing assets was a contractually binding non-accrual loan held for sale of $7.5 million as of March 31, 2011.
2  Comprised of other revolving credit, installment, and lease financing.

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
 	 	 	
Reserve for Credit Losses	 	Table 11	
 
 	 	Three Months Ended	 	Year Ended	 	
 	 	December 31,	 	September 30,	 	December 31,	 	December 31,	 	
(dollars in thousands)	 	2011	 	2011	 	2010	 	2011	 	2010	 	
Balance at Beginning of Period	 	$	148,829	 	$	150,395	 	$	152,777	 	$	152,777	 	$	149,077	 	
Loans and Leases Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	(733	)	(4,215	)	(6,528	)	(8,112	)	(21,125	)	
Commercial Mortgage	 	-	 	-	 	(745	)	-	 	(2,048	)	
Construction	 	-	 	-	 	-	 	-	 	(2,274	)	
Lease Financing	 	-	 	-	 	(95	)	-	 	(500	)	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	(2,888	)	(1,558	)	(3,182	)	(8,174	)	(12,139	)	
Home Equity	 	(3,714	)	(2,528	)	(1,859	)	(10,853	)	(15,052	)	
Automobile	 	(688	)	(715	)	(1,116	)	(3,229	)	(6,425	)	
Other 1	 	(1,585	)	(1,755	)	(2,137	)	(6,392	)	(10,315	)	
Total Loans and Leases Charged-Off	 	(9,608	)	(10,771	)	(15,662	)	(36,760	)	(69,878	)	
Recoveries on Loans and Leases Previously Charged-Off	 	 	 	 	 	 	 	 	 	 	 	
Commercial	 	 	 	 	 	 	 	 	 	 	 	
Commercial and Industrial	 	469	 	994	 	424	 	2,434	 	2,082	 	
Commercial Mortgage	 	8	 	530	 	44	 	538	 	68	 	
Construction	 	-	 	-	 	7,321	 	-	 	7,321	 	
Lease Financing	 	29	 	3,405	 	118	 	3,528	 	158	 	
Consumer	 	 	 	 	 	 	 	 	 	 	 	
Residential Mortgage	 	531	 	740	 	190	 	2,152	 	1,544	 	
Home Equity	 	469	 	137	 	967	 	1,695	 	1,597	 	
Automobile	 	528	 	650	 	727	 	2,479	 	3,128	 	
Other1	 	551	 	569	 	593	 	2,492	 	2,393	 	
Total Recoveries on Loans and Leases Previously Charged-Off	 	2,585	 	7,025	 	10,384	 	15,318	 	18,291	 	
Net Loans and Leases Charged-Off	 	(7,023	)	(3,746	)	(5,278	)	(21,442	)	(51,587	)	
Provision for Credit Losses	 	2,219	 	2,180	 	5,278	 	12,690	 	55,287	 	
Balance at End of Period2	 	$	144,025	 	$	148,829	 	$	152,777	 	$	144,025	 	$	152,777	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Components	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan and Lease Losses	 	$	138,606	 	$	143,410	 	$	147,358	 	$	138,606	 	$	147,358	 	
Reserve for Unfunded Commitments	 	5,419	 	5,419	 	5,419	 	5,419	 	5,419	 	
Total Reserve for Credit Losses	 	$	144,025	 	$	148,829	 	$	152,777	 	$	144,025	 	$	152,777	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases Outstanding	 	$	5,420,352	 	$	5,340,406	 	$	5,317,815	 	$	5,349,938	 	$	5,472,534	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Ratio of Net Loans and Leases Charged-Off to	 	 	 	 	 	 	 	 	 	 	 	
Average Loans and Leases Outstanding (annualized)	 	0.51%	 	0.28%	 	0.39%	 	0.40%	 	0.94%	 	
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding	 	2.50%	 	2.68%	 	2.76%	 	2.50%	 	2.76%	 	

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 12a	
 
 	 	Retail	 	Commercial	 	Investment	 	Treasury	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	and Other	 	Total	 	
Three Months Ended December 31, 2011	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	42,333 	 	$	33,727 	 	$	3,784 	 	$	16,402 	 	$	96,246 	 	
Provision for Credit Losses	 	7,236 	 	(212)	 	(1)	 	(4,804)	 	2,219 	 	
Net Interest Income After Provision for Credit Losses	 	35,097 	 	33,939 	 	3,785 	 	21,206 	 	94,027 	 	
Noninterest Income	 	17,513 	 	8,907 	 	13,636 	 	3,351 	 	43,407 	 	
Noninterest Expense	 	(45,523)	 	(22,494)	 	(14,125)	 	(2,240)	 	(84,382)	 	
Income Before Provision for Income Taxes	 	7,087 	 	20,352 	 	3,296 	 	22,317 	 	53,052 	 	
Provision for Income Taxes	 	(2,622)	 	(7,099)	 	(1,219)	 	(2,883)	 	(13,823)	 	
Net Income	 	4,465 	 	13,253 	 	2,077 	 	19,434 	 	39,229 	 	
Total Assets as of December 31, 2011	 	$	3,147,760 	 	$	2,337,214 	 	$	218,088 	 	$	8,143,329 	 	$	13,846,391 	 	

Three Months Ended December 31, 2010 1	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	44,382 	 	$	34,333 	 	$	3,985 	 	$	13,573 	 	$	96,273 	 	
Provision for Credit Losses	 	6,861 	 	(1,383)	 	(199)	 	(1)	 	5,278 	 	
Net Interest Income After Provision for Credit Losses	 	37,521 	 	35,716 	 	4,184 	 	13,574 	 	90,995 	 	
Noninterest Income	 	23,537 	 	9,843 	 	14,134 	 	3,963 	 	51,477 	 	
Noninterest Expense	 	(46,461)	 	(24,015)	 	(15,017)	 	(3,229)	 	(88,722)	 	
Income Before Provision for Income Taxes	 	14,597 	 	21,544 	 	3,301 	 	14,308 	 	53,750 	 	
Provision for Income Taxes	 	(5,401)	 	(7,531)	 	(1,221)	 	981 	 	(13,172)	 	
Net Income	 	9,196 	 	14,013 	 	2,080 	 	15,289 	 	40,578 	 	
Total Assets as of December 31, 2010 1	 	$	3,078,747 	 	$	2,244,788 	 	$	196,466 	 	$	7,606,786 	 	$	13,126,787 	 	

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 12b	
 
 	 	Retail	 	Commercial	 	Investment	 	Treasury	 	Consolidated	 	
(dollars in thousands)	 	Banking	 	Banking	 	Services	 	and Other	 	Total	 	
Year Ended December 31, 2011	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	173,982 	 	$	137,351 	 	$	15,137 	 	$	63,738 	 	$	390,208 	 	
Provision for Credit Losses	 	22,341 	 	(938)	 	64 	 	(8,777)	 	12,690 	 	
Net Interest Income After Provision for Credit Losses	 	151,641 	 	138,289 	 	15,073 	 	72,515 	 	377,518 	 	
Noninterest Income	 	84,008 	 	37,132 	 	59,891 	 	16,624 	 	197,655 	 	
Noninterest Expense	 	(186,872)	 	(93,623)	 	(59,187)	 	(8,511)	 	(348,193)	 	
Income Before Provision for Income Taxes	 	48,777 	 	81,798 	 	15,777 	 	80,628 	 	226,980 	 	
Provision for Income Taxes	 	(18,047)	 	(28,401)	 	(5,838)	 	(14,651)	 	(66,937)	 	
Net Income	 	30,730 	 	53,397 	 	9,939 	 	65,977 	 	160,043 	 	
Total Assets as of December 31, 2011	 	$	3,147,760 	 	$	2,337,214 	 	$	218,088 	 	$	8,143,329 	 	$	13,846,391 	 	

Year Ended December 31, 2010 1	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	$	188,673 	 	$	147,016 	 	$	16,567 	 	$	54,224 	 	$	406,480 	 	
Provision for Credit Losses	 	38,377 	 	17,085 	 	(129)	 	(46)	 	55,287 	 	
Net Interest Income After Provision for Credit Losses	 	150,296 	 	129,931 	 	16,696 	 	54,270 	 	351,193 	 	
Noninterest Income	 	100,859 	 	41,304 	 	59,948 	 	53,147 	 	255,258 	 	
Noninterest Expense	 	(175,621)	 	(96,225)	 	(58,467)	 	(15,923)	 	(346,236)	 	
Income Before Provision for Income Taxes	 	75,534 	 	75,010 	 	18,177 	 	91,494 	 	260,215 	 	
Provision for Income Taxes	 	(27,947)	 	(22,273)	 	(6,726)	 	(19,327)	 	(76,273)	 	
Net Income	 	47,587 	 	52,737 	 	11,451 	 	72,167 	 	183,942 	 	
Total Assets as of December 31, 2010 1	 	$	3,078,747 	 	$	2,244,788 	 	$	196,466 	 	$	7,606,786 	 	$	13,126,787 	 	

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

 
Bank of Hawaii Corporation and Subsidiaries	 	 	
 	 	 	
Selected Quarterly Financial Data	 	Table 13	
 
 	 	Three Months Ended	 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	December 31,	 	September 30,	 	June 30,	 	March 31,	 	December 31,	 	
 	 	 	 	 	 	 	 	 	 	 	 	
(dollars in thousands, except per share amounts)	 	2011	 	2011	 	2011	 	2011	 	2010	 	
Quarterly Operating Results	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	
Interest and Fees on Loans and Leases	 	$	64,760	 	$	65,344	 	$	65,542	 	$	66,593	 	$	67,915	 	
Income on Investment Securities	 	 	 	 	 	 	 	 	 	 	 	
Available-for-Sale	 	19,107	 	23,097	 	23,490	 	37,669	 	39,546	 	
Held-to-Maturity	 	23,608	 	20,344	 	20,553	 	7,633	 	1,388	 	
Deposits	 	2	 	6	 	2	 	(2	)	7	 	
Funds Sold	 	120	 	160	 	297	 	251	 	160	 	
Other	 	280	 	279	 	279	 	279	 	279	 	
Total Interest Income	 	107,877	 	109,230	 	110,163	 	112,423	 	109,295	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	
Deposits	 	3,736	 	4,561	 	4,792	 	5,232	 	5,918	 	
Securities Sold Under Agreements to Repurchase	 	7,392	 	7,400	 	7,338	 	7,041	 	6,425	 	
Funds Purchased	 	5	 	4	 	5	 	6	 	7	 	
Long-Term Debt	 	498	 	499	 	529	 	447	 	672	 	
Total Interest Expense	 	11,631	 	12,464	 	12,664	 	12,726	 	13,022	 	
Net Interest Income	 	96,246	 	96,766	 	97,499	 	99,697	 	96,273	 	
Provision for Credit Losses	 	2,219	 	2,180	 	3,600	 	4,691	 	5,278	 	
Net Interest Income After Provision for Credit Losses	 	94,027	 	94,586	 	93,899	 	95,006	 	90,995	 	
Noninterest Income	 	 	 	 	 	 	 	 	 	 	 	
Trust and Asset Management	 	11,025	 	10,788	 	11,427	 	11,806	 	11,190	 	
Mortgage Banking	 	3,401	 	5,480	 	2,661	 	3,122	 	4,549	 	
Service Charges on Deposit Accounts	 	9,606	 	9,820	 	9,375	 	9,932	 	11,632	 	
Fees, Exchange, and Other Service Charges	 	12,401	 	16,219	 	16,662	 	14,945	 	15,196	 	
Investment Securities Gains (Losses), Net	 	282	 	-    	 	-    	 	6,084	 	(1	)	
Insurance	 	2,312	 	2,664	 	3,210	 	2,771	 	2,309	 	
Other	 	4,380	 	5,892	 	6,128	 	5,262	 	6,602	 	
Total Noninterest Income	 	43,407	 	50,863	 	49,463	 	53,922	 	51,477	 	
Noninterest Expense	 	 	 	 	 	 	 	 	 	 	 	
Salaries and Benefits	 	44,927	 	44,307	 	46,800	 	46,782	 	46,809	 	
Net Occupancy	 	11,253	 	11,113	 	10,476	 	10,327	 	10,504	 	
Net Equipment	 	4,748	 	4,662	 	4,741	 	4,698	 	5,902	 	
Professional Fees	 	1,926	 	2,245	 	2,294	 	2,158	 	2,116	 	
FDIC Insurance	 	2,027	 	2,065	 	2,010	 	3,244	 	3,198	 	
Other	 	19,501	 	19,563	 	27,453	 	18,873	 	20,193	 	
Total Noninterest Expense	 	84,382	 	83,955	 	93,774	 	86,082	 	88,722	 	
Income Before Provision for Income Taxes	 	53,052	 	61,494	 	49,588	 	62,846	 	53,750	 	
Provision for Income Taxes	 	13,823	 	18,188	 	14,440	 	20,486	 	13,172	 	
Net Income	 	$	39,229	 	$	43,306	 	$	35,148	 	$	42,360	 	$	40,578	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Basic Earnings Per Share	 	$0.85	 	$0.93	 	$0.74	 	$0.89	 	$0.84	 	
Diluted Earnings Per Share	 	$0.85	 	$0.92	 	$0.74	 	$0.88	 	$0.84	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Totals	 	 	 	 	 	 	 	 	 	 	 	
Loans and Leases	 	$	5,538,304	 	$	5,348,472	 	$	5,351,473	 	$	5,326,929	 	$	5,335,792	 	
Total Assets	 	13,846,391	 	13,304,758	 	13,161,204	 	12,962,304	 	13,126,787	 	
Total Deposits	 	10,592,623	 	10,009,013	 	9,979,034	 	9,912,391	 	9,888,995	 	
Total Shareholders’ Equity	 	1,002,667	 	1,017,775	 	1,003,450	 	996,225	 	1,011,133	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Performance Ratios	 	 	 	 	 	 	 	 	 	 	 	
Return on Average Assets	 	1.17	  %	1.31	  %	1.09	  %	1.32	  %	1.24	 	
Return on Average Shareholders’ Equity	 	15.23	 	16.80	 	13.86	 	16.86	 	15.08	 	
Efficiency Ratio1	 	60.42	 	56.87	 	63.81	 	56.04	 	60.05	 	
Net Interest Margin2	 	3.04	 	3.09	 	3.16	 	3.24	 	3.15	 	

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 14	
 
 	 	Eleven Months Ended	 	    Year Ended	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
($ in millions; jobs in thousands)	 	November 30, 2011	 	December 31, 2010	 	December 31, 2009	 	
Hawaii Economic Trends	 	 	 	 	 	 	 	 	 	 	 	 	 	
State General Fund Revenues1	 	$	4,258.0	 	7.8	  % 	$	4,314.1	 	7.4	  % 	$	4,018.2	 	(12.8	)  %	
General Excise and Use Tax Revenue1	 	$	2,383.1	 	9.0	 	$	2,379.9	 	3.6	 	$	2,296.3	 	(10.6	)	
Jobs2	 	599.7	 	1.3	 	586.8	 	(0.8	)	591.7	 	(4.4	)	

 	 	 	 	 	 	November 30,	 	    December 31,	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(spot rates)	 	 	 	 	 	2011	 	2010	 	2009	 	2008	 	
Unemployment3	 	 	 	 	 	 	 	 	 	 	 	 	 	
Statewide, seasonally adjusted	 	 	 	 	 	6.5	  %	6.3	   %	6.9	  %	5.6	   %	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Oahu	 	 	 	 	 	5.7	 	4.8	 	5.4	 	4.3	 	
Island of Hawaii	 	 	 	 	 	9.6	 	8.6	 	9.5	 	7.4	 	
Maui	 	 	 	 	 	7.7	 	7.4	 	8.8	 	6.9	 	
Kauai	 	 	 	 	 	8.8	 	7.8	 	8.7	 	7.8	 	

 	 	 	 	 	 	    December 31,	 	
 	 	 	 	 	 	 	 	 	 	 	 	
(percentage change, except months of inventory)	 	 	 	 	 	2011	 	2010	 	2009	 	
Housing Trends (Single Family Oahu)4	 	 	 	 	 	 	 	 	 	 	 	
Median Home Price	 	 	 	 	 	(3.0	)  %	3.1	  %	(7.3	)  %	
Home Sales Volume (units)	 	 	 	 	 	(2.7	)  %	13.4	  %	(1.8	)  %	
Months of Inventory	 	 	 	 	 	4.8	 	6.0	 	6.8	 	

 	 	 	 	 	 	Monthly Visitor Arrivals,	 	Percentage Change	 	
 	 	 	 	 	 	 	 	 	 	
(in thousands)	 	 	 	 	 	Seasonally Adjusted	 	from Previous Month	 	
Tourism2	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
October 31, 2011	 	 	 	 	 	 	 	605.9	 	 	 	(2.8	)  %	
September 30, 2011	 	 	 	 	 	 	 	623.4	 	 	 	7.7	 	
August 31, 2011	 	 	 	 	 	 	 	578.6	 	 	 	(1.2	)	
July 31, 2011	 	 	 	 	 	 	 	585.4	 	 	 	2.4	 	
June 30, 2011	 	 	 	 	 	 	 	572.0	 	 	 	(0.1	)	
May 31, 2011	 	 	 	 	 	 	 	572.5	 	 	 	(2.2	)	
April 30, 2011	 	 	 	 	 	 	 	585.3	 	 	 	1.9	 	
March 31, 2011	 	 	 	 	 	 	 	574.4	 	 	 	(4.5	)	
February 28, 2011	 	 	 	 	 	 	 	601.6	 	 	 	(0.5	)	
January 31, 2011	 	 	 	 	 	 	 	604.7	 	 	 	1.1	 	
December 31, 2010	 	 	 	 	 	 	 	598.2	 	 	 	(2.0	)	
November 30, 2010	 	 	 	 	 	 	 	610.6	 	 	 	1.0	 	
October 31, 2010	 	 	 	 	 	 	 	604.5	 	 	 	0.9	 	
September 30, 2010	 	 	 	 	 	 	 	598.9	 	 	 	(1.1	)	
August 31, 2010	 	 	 	 	 	 	 	605.9	 	 	 	1.3	 	
July 31, 2010	 	 	 	 	 	 	 	597.9	 	 	 	1.2	 	
June 30, 2010	 	 	 	 	 	 	 	590.9	 	 	 	3.1	 	
May 31, 2010	 	 	 	 	 	 	 	572.9	 	 	 	1.4	 	
April 30, 2010	 	 	 	 	 	 	 	564.8	 	 	 	1.8	 	
March 31, 2010	 	 	 	 	 	 	 	554.9	 	 	 	2.6	 	
February 28, 2010	 	 	 	 	 	 	 	540.6	 	 	 	(0.3	)	
January 31, 2010	 	 	 	 	 	 	 	542.5	 	 	 	(0.1	)	

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.