Bank of Hawaii (BOH) 8-K Bank of Hawaii Corporation Second Quarter 2013 Financial Results

Exhibit 99.1

Bank of Hawaii Corporation Second Quarter 2013 Financial Results

•Diluted Earnings Per Share $0.85

•Net Income $37.8 Million

•Board of Directors Declares Dividend of $0.45 Per Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (July 22, 2013) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.85 for the second quarter of 2013, up from $0.81 in the previous quarter, and down from $0.90 in the same quarter last year. Net income for the second quarter of 2013 was $37.8 million, an increase of $1.8 million or 5.0 percent compared with net income of $36.0 million in the first quarter of 2013, and down $3.0 million or 7.3 percent from net income of $40.7 million in the second quarter of 2012.

“Bank of Hawaii Corporation continued its trend of solid performance in the second quarter of 2013,” said Peter Ho, Chairman, President and CEO.  “Overall loan balances grew 3% from the same quarter last year as strong commercial, indirect automobile and certain other consumer loan growth was partially offset by refinance sensitive loan categories namely residential mortgage and home equity loans.  The organization continues to attract quality deposits with consumer and commercial deposit balances up 4% in the quarter from last year.  Asset quality continued its trend of improvement in the quarter with lower levels of non-performing assets and a lower ratio of net charge offs to loans.  Expenses remained controlled.  The recent trend in higher interest rates should positively impact our operating earnings over time through improved net interest margin.  We would note, however, that nearer term, we will likely see a meaningful slowing in our mortgage banking business as the refinance market potentially slows and the purchase market remains impacted by exceptionally tight housing inventory.”

The return on average assets for the second quarter of 2013 was 1.12 percent, up from 1.08 percent in the previous quarter, and down from 1.19 percent during the same quarter last year. The return on average equity for the second quarter of 2013 was 14.64 percent compared with 14.10 percent for the first quarter of 2013 and 16.19 percent in the second quarter of 2012.

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Bank of Hawaii Corporation Second Quarter 2013 Financial Results             Page 2

For the six-month period ended June 30, 2013, net income was $73.7 million, down from net income of $84.6 million for the same period last year. Diluted earnings per share were $1.65 for the first half of 2013, down from diluted earnings per share of $1.85 for the first half of 2012. The year-to-date return on average assets was 1.10 percent, down from 1.24 percent for the same six months in 2012. The year-to-date return on average equity was 14.37 percent, down from 16.73 percent for the six months ended June 30, 2012.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the second quarter of 2013 was $89.8 million, down $1.2 million from net interest income of $91.0 million in the first quarter of 2013 and down $8.1 million from net interest income of $97.9 million in the second quarter of 2012. Net interest income for the first half of 2013 was $180.8 million compared with net interest income of $197.9 million for the first half of 2012. Analyses of the changes in net interest income are included in Tables 8a, 8b, and 8c.

The net interest margin was 2.77 percent for the second quarter of 2013, a 5 basis point decrease from the net interest margin of 2.82 percent in the first quarter of 2013 and a 21 basis point decrease from the net interest margin of 2.98 percent in the second quarter of 2012. The net interest margin for the first six months of 2013 was 2.80 percent compared with 3.02 percent for the same six-month period last year. The decrease in the net interest margin was primarily due to increased levels of liquidity and lower yields on loans and investment securities.

The Company did not record a provision for credit losses during the first or second quarters of 2013. Net loans and leases charged-off were $2.3 million in the second quarter of 2013 and $2.0 million in the first quarter of 2013. The provision for credit losses during the second quarter of 2012 was $0.6 million, or $3.2 million less than net charge-offs.

Noninterest income was $48.0 million in the second quarter of 2013, an increase of $0.3 million compared with noninterest income of $47.8 million in the first quarter of 2013, and an increase of $1.2 million compared with noninterest income of $46.8 million in the second quarter of 2012. Noninterest income included mortgage banking revenue of $5.8 million in the second quarter of 2013 compared with $6.4 million in the previous quarter and $7.6 million in the same quarter last year. Noninterest income for the first half of 2013 was $95.8 million, an increase of $0.9 million compared with noninterest income of $94.9 million for the first half of 2012.

Noninterest expense was $81.2 million in the second quarter of 2013, down $3.2 million compared with $84.4 million in the first quarter of 2013, and up $0.4 million compared with $80.7 million in the second quarter last year. Noninterest expense in the first quarter of 2013 included seasonal payroll-related expenses of approximately $3.0 million and separation expense of $1.5 million. Separation expenses were $0.9 million in the second quarter of 2013 and $0.4 million in the same quarter last year. An analysis of noninterest expenses related to salaries and benefits is included in Table 9. Noninterest expense for the first half of 2013 was $165.6 million, a decrease of $0.4 million compared with noninterest expense of $166.0 million for the first half of 2012.

The efficiency ratio for the second quarter of 2013 was 59.96 percent, down from 61.90 percent in the previous quarter and up from 56.77 percent in the same quarter last year. The efficiency ratio for the first half of 2013 was 60.93 percent compared with 57.57 percent in the same period last year.

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Bank of Hawaii Corporation Second Quarter 2013 Financial Results         Page 3

The effective tax rate for the second quarter of 2013 was 30.33 percent compared with 30.74 percent in the previous quarter and 33.04 percent during the same quarter last year. The lower effective tax rates during 2013 are due to the release of tax reserves and low-income housing and other tax credits.

The Company's business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury & Other. Results are determined based on the Company's internal financial management reporting process and organizational structure. Selected financial information for the business segments is included in Tables 13a and 13b.

Asset Quality

The Company's overall asset quality remained strong during the second quarter of 2013. Total non-performing assets were $36.4 million at June 30, 2013, down from $38.4 million at March 31, 2013 and down from $41.5 million at June 30, 2012. Non-performing assets remain above historical levels due to the lengthy judicial foreclosure process for residential mortgage loans. As a percentage of total loans and leases and foreclosed real estate, non-performing assets were 0.62 percent at June 30, 2013, down from 0.66 percent at March 31, 2013 and down from 0.73 percent at June 30, 2012.

Accruing loans and leases past due 90 days or more were $10.6 million at June 30, 2013, down from $11.7 million at March 31, 2013 and up from $7.2 million at June 30, 2012. The increase in consumer delinquencies compared with the prior year was largely due to residential mortgage loans and home equity loans, primarily on neighbor island properties. Restructured loans and leases not included in non-accrual loans or accruing loans that are past due 90 days or more were $39.2 million at June 30, 2013 and primarily comprised of residential mortgage loans with lowered monthly payments to accommodate the borrowers' financial needs for a period of time. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loans and leases charged off during the second quarter of 2013 were $2.3 million or 0.16 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $4.7 million during the quarter were partially offset by recoveries of $2.4 million. Net charge-offs during the first quarter of 2013 were $2.0 million, or 0.14 percent annualized of total average loans and leases outstanding, and were comprised of $5.3 million in charge-offs partially offset by recoveries of $3.3 million. Net charge-offs in the second quarter of 2012 were $3.8 million or 0.27 percent annualized of total average loans and leases outstanding, and were comprised of $5.9 million in charge-offs partially offset by recoveries of $2.1 million. Net charge-offs in the first half of 2013 were $4.3 million, or 0.15 percent annualized of total average loans and leases outstanding compared with net charge-offs of $7.1 million, or 0.26 percent annualized of total average loans and leases outstanding for the first half of 2012.

The allowance for loan and lease losses was reduced to $124.6 million at June 30, 2013. The ratio of the allowance for loan and lease losses to total loans and leases was 2.13 percent at June 30, 2013, a decrease of 6 basis points from the previous quarter and commensurate with improvements in credit quality and the Hawaii economy. The reserve for unfunded commitments at June 30, 2013 was $5.9 million, an increase of $0.5 million or 9% from the balance at March 31, 2013 and June 30, 2012. The increase in the reserve for unfunded commitments was primarily due to growth in commercial commitments. Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.

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Bank of Hawaii Corporation Second Quarter 2013 Financial Results         Page 4

Other Financial Highlights

Total assets were $13.73 billion at June 30, 2013, up from total assets of $13.53 billion at March 31, 2013 and down from total assets of $13.92 billion at June 30, 2012. Average total assets were $13.57 billion during the second quarter of 2013, up from $13.56 billion during the previous quarter and down from $13.75 billion during the same quarter last year.

The total investment securities portfolio totaled $6.84 billion at June 30, 2013, down from $6.89 billion at March 31, 2013 and $7.07 billion at June 30, 2012. The portfolio remains largely comprised of securities issued by U.S. government agencies. 

Total loans and leases were $5.86 billion at June 30, 2013, up from $5.78 billion at March 31, 2013 and $5.67 billion at June 30, 2012. The commercial loan portfolio was $2.40 billion at the end of the second quarter of 2013, up from commercial loans of $2.33 billion at the end of the first quarter of 2013 and $2.12 billion at the end of the same quarter last year. Consumer loans were $3.46 billion at the end of the second quarter of 2013, up slightly from the end of the first quarter of 2013, and down from $3.55 billion at the end of the second quarter of 2012 due to a decline in the residential mortgage and home equity loan portfolios that offset growth in other consumer lending. Average total loans and leases were $5.78 billion during the second quarter of 2013, down from $5.80 billion during the first quarter of 2013 and up from average total loans and leases of $5.64 billion during the same quarter last year. Loan and lease portfolio balances, including the higher risk loans and leases outstanding, are summarized in Table 10.

Total deposits were $11.45 billion at June 30, 2013, up from $11.25 billion at March 31, 2013 due to growth in nearly all deposit categories. Total deposits were down from $11.55 billion at June 30, 2012 primarily due to a reduction in public deposits. Average total deposits were $11.24 billion in the second quarter of 2013, down from average deposits of $11.29 billion during the previous quarter, and up from average deposits of $10.62 billion during the same quarter last year.

During the second quarter of 2013, the Company repurchased 304.6 thousand shares of common stock at a total cost of $15.0 million under its share repurchase program. The average cost was $49.22 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through June 30, 2013, the Company has repurchased 50.7 million shares and returned over $1.8 billion to shareholders at an average cost of $36.44 per share. Remaining buyback authority under the share repurchase program was $47.9 million at June 30, 2013. From July 1 through July 19, 2013, the Company has repurchased an additional 70.0 thousand shares of common stock at an average cost of $53.51 per share.

Total shareholders' equity was $0.99 billion at June 30, 2013, compared with $1.03 billion at March 31, 2013 and $1.0 billion at June 30, 2012. The ratio of tangible common equity to risk-weighted assets was 15.65 percent at the end of the second quarter of 2013, compared with 17.04 percent at the end of the first quarter of 2013, and 17.57 percent at the end of the same quarter last year. The Tier 1 leverage ratio at June 30, 2013 was 6.95 percent, up from 6.90 percent at March 31, 2013 and 6.57 percent at June 30, 2012.

The Company's Board of Directors declared a quarterly cash dividend of $0.45 per share on the Company's outstanding shares. The dividend will be payable on September 16, 2013 to shareholders of record at the close of business on August 30, 2013.

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Bank of Hawaii Corporation Second Quarter 2013 Financial Results         Page 5

Hawaii Economy

Hawaii's economy continued to improve during the second quarter of 2013 led by tourism, the State's largest industry. For the first five months of 2013, total visitor arrivals increased by 5.7% and visitor spending increased by 5.1% compared to the same period in 2012. The statewide seasonally-adjusted unemployment rate was 4.6% in June 2013, compared to 5.1 percent at year-end and 7.6% nationally. For the first six months of 2013, the volume of single-family home sales on Oahu was 11.6% higher compared to the same period in 2012 and the volume of condominium sales on Oahu was 18.8% higher compared to the same period in 2012. As of June 30, 2013 Oahu single-family home inventory was 2.7 months compared to 3.9 months at June 30, 2012. Oahu condominium inventory was 2.7 months at June 30, 2013 compared to 4.2 months last year. Oahu median single-family home prices increased 9.2 percent in June compared to last year and 0.8 percent year-to-date. Oahu median condominium home prices increased 11.1 percent in June compared to last year and 6.8 percent year-to-date. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its second quarter 2013 financial results today at 8:00 a.m. Hawaii Time. The conference call will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation's web site, www.boh.com. Conference call participants located in the United States should dial (866) 788-0542. International participants should dial (857) 350-1680. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning Monday, July 22, 2013 by calling (888) 286-8010 in the United States or (617) 801-6888 internationally and entering the pass code number 45894681 when prompted. A replay will also be available via the Investor Relations link on the Company's web site.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations.  Do not unduly rely on forward-looking statements.  Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2012, which was filed with the U.S. Securities and Exchange Commission.  We have not committed to update forward-looking statements to reflect later events or circumstances.

Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers and governments in Hawaii, American Samoa and the West Pacific. The Company's principal subsidiary, Bank of Hawaii, was founded in 1897 and is the largest independent financial institution in Hawaii. For more information about Bank of Hawaii Corporation, see the Company's web site, www.boh.com.

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Bank of Hawaii Corporation and Subsidiaries
Financial Highlights													Table 1a
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands, except per share amounts)	2013			2013			2012			2013			2012
For the Period:
Operating Results
Net Interest Income	$	87,340		$	88,560		$	95,381		$	175,900		$	193,329
Provision for Credit Losses	—			—			628			—			979
Total Noninterest Income	48,041			47,778			46,848			95,819			94,930
Total Noninterest Expense	81,181			84,387			80,747			165,568			165,954
Net Income	37,763			35,980			40,747			73,743			84,557
Basic Earnings Per Share	0.85			0.81			0.90			1.66			1.86
Diluted Earnings Per Share	0.85			0.81			0.90			1.65			1.85
Dividends Declared Per Share	0.45			0.45			0.45			0.90			0.90
Performance Ratios
Return on Average Assets	1.12		%	1.08		%	1.19		%	1.10		%	1.24		%
Return on Average Shareholders' Equity	14.64			14.10			16.19			14.37			16.73
Efficiency Ratio 1	59.96			61.90			56.77			60.93			57.57
Net Interest Margin 2	2.77			2.82			2.98			2.80			3.02
Dividend Payout Ratio 3	52.94			55.56			50.00			54.22			48.39
Average Shareholders' Equity to Average Assets	7.62			7.63			7.36			7.63			7.41
Average Balances
Average Loans and Leases	$	5,781,898		$	5,803,503		$	5,641,588		$	5,792,641		$	5,602,473
Average Assets	13,572,329			13,557,358			13,750,488			13,564,885			13,715,859
Average Deposits	11,244,600			11,287,485			10,622,420			11,265,924			10,526,317
Average Shareholders' Equity	1,034,366			1,034,843			1,012,182			1,034,603			1,016,425
Per Share of Common Stock
Book Value	$	22.09		$	22.87		$	22.18		$	22.09		$	22.18
Market Value
Closing	50.32			50.81			45.95			50.32			45.95
High	52.17			50.91			49.99			52.17			49.99
Low	46.04			44.88			44.02			44.88			44.02
				June 30,			March 31,			December 31,			June 30,
				2013			2013			2012			2012
As of Period End:
Balance Sheet Totals
Loans and Leases				$	5,859,152		$	5,782,969		$	5,854,521		$	5,671,483
Total Assets				13,733,418			13,525,667			13,728,372			13,915,626
Total Deposits				11,449,198			11,251,860			11,529,482			11,547,993
Long-Term Debt				174,727			177,427			128,055			28,075
Total Shareholders' Equity				986,368			1,026,104			1,021,665			1,003,825
Asset Quality
Allowance for Loan and Lease Losses				$	124,575		$	126,878		$	128,857		$	132,443
Non-Performing Assets				36,431			38,374			37,083			41,494
Financial Ratios
Allowance to Loans and Leases Outstanding				2.13		%	2.19		%	2.20		%	2.34		%
Tier 1 Capital Ratio				15.53			16.12			16.13			16.41
Total Capital Ratio				16.79			17.38			17.39			17.67
Tier 1 Leverage Ratio				6.95			6.90			6.83			6.57
Total Shareholders' Equity to Total Assets				7.18			7.59			7.44			7.21
Tangible Common Equity to Tangible Assets 4				6.97			7.37			7.23			7.00
Tangible Common Equity to Risk-Weighted Assets 4				15.65			17.04			17.24			17.57
Non-Financial Data
Full-Time Equivalent Employees				2,227			2,269			2,276			2,312
Branches and Offices				75			75			76			77
ATMs				486			489			494			494
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 to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 1b “Reconciliation of Non-GAAP Financial Measures."

Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures											Table 1b
		June 30,			March 31,			December 31,			June 30,
(dollars in thousands)		2013			2013			2012			2012
Total Shareholders' Equity		$	986,368		$	1,026,104		$	1,021,665		$	1,003,825
Less:	Goodwill	31,517			31,517			31,517			31,517
	Intangible Assets	8			21			33			58
Tangible Common Equity		$	954,843		$	994,566		$	990,115		$	972,250
Total Assets		$	13,733,418		$	13,525,667		$	13,728,372		$	13,915,626
Less:	Goodwill	31,517			31,517			31,517			31,517
	Intangible Assets	8			21			33			58
Tangible Assets		$	13,701,893		$	13,494,129		$	13,696,822		$	13,884,051
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements		$	6,099,770		$	5,836,354		$	5,744,722		$	5,532,285
Total Shareholders' Equity to Total Assets		7.18		%	7.59		%	7.44		%	7.21		%
Tangible Common Equity to Tangible Assets (Non-GAAP)		6.97		%	7.37		%	7.23		%	7.00		%
Tier 1 Capital Ratio		15.53		%	16.12		%	16.13		%	16.41		%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)		15.65		%	17.04		%	17.24		%	17.57		%

Bank of Hawaii Corporation and Subsidiaries
Net Significant Income Items															Table 2
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands)	2013			2013			2012			2013			2012
Net Gains on Disposal of Leased Equipment	$	—		$	—		$	—		$	—		$	2,473
Decrease in Allowance for Loan and Lease Losses	2,303			1,979			3,163			4,282			6,163
Separation Expense	(864		)	(1,475		)	(405		)	(2,339		)	(822			)
PC Refresh	—			—			—			—			(1,163			)
Significant Income Items Before the Provision for Income Taxes	1,439			504			2,758			1,943			6,651
Income Taxes Impact Related to Lease Transactions	—			—			—			—			(2,733			)
Release of Tax Reserve	(1,090		)	—			—			(1,090		)	—
Income Tax Impact	504			176			965			680			1,112
Net Significant Income Items	$	2,025		$	328		$	1,793		$	2,353		$	8,272

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income									Table 3
	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,
(dollars in thousands, except per share amounts)	2013		2013		2012		2013			2012
Interest Income
Interest and Fees on Loans and Leases	$	62,729	$	62,820	$	63,910	$	125,549		$	128,601
Income on Investment Securities
Available-for-Sale	15,073		15,851		16,988		30,924			34,701
Held-to-Maturity	19,189		19,854		25,054		39,043			51,467
Deposits	1		3		1		4			3
Funds Sold	74		59		119		133			248
Other	285		284		281		569			561
Total Interest Income	97,351		98,871		106,353		196,222			215,581
Interest Expense
Deposits	2,579		2,646		3,219		5,225			6,692
Securities Sold Under Agreements to Repurchase	6,751		7,005		7,250		13,756			14,554
Funds Purchased	10		22		5		32			10
Long-Term Debt	671		638		498		1,309			996
Total Interest Expense	10,011		10,311		10,972		20,322			22,252
Net Interest Income	87,340		88,560		95,381		175,900			193,329
Provision for Credit Losses	—		—		628		—			979
Net Interest Income After Provision for Credit Losses	87,340		88,560		94,753		175,900			192,350
Noninterest Income
Trust and Asset Management	12,089		11,886		11,195		23,975			22,113
Mortgage Banking	5,820		6,411		7,581		12,231			12,631
Service Charges on Deposit Accounts	9,112		9,301		9,225		18,413			18,816
Fees, Exchange, and Other Service Charges	13,133		11,934		12,326		25,067			24,725
Investment Securities Losses, Net	—		—		—		—			(90		)
Insurance	2,393		2,325		2,399		4,718			4,677
Bank-Owned Life Insurance	1,335		1,297		1,739		2,632			3,220
Other	4,159		4,624		2,383		8,783			8,838
Total Noninterest Income	48,041		47,778		46,848		95,819			94,930
Noninterest Expense
Salaries and Benefits	45,341		48,675		44,037		94,016			91,061
Net Occupancy	9,661		9,635		10,058		19,296			20,574
Net Equipment	4,380		4,577		4,669		8,957			10,495
Data Processing	3,050		3,266		3,160		6,316			6,747
Professional Fees	2,391		2,226		2,386		4,617			4,518
FDIC Insurance	1,949		1,949		2,088		3,898			4,159
Other	14,409		14,059		14,349		28,468			28,400
Total Noninterest Expense	81,181		84,387		80,747		165,568			165,954
Income Before Provision for Income Taxes	54,200		51,951		60,854		106,151			121,326
Provision for Income Taxes	16,437		15,971		20,107		32,408			36,769
Net Income	$	37,763	$	35,980	$	40,747	$	73,743		$	84,557
Basic Earnings Per Share	$	0.85	$	0.81	$	0.90	$	1.66		$	1.86
Diluted Earnings Per Share	$	0.85	$	0.81	$	0.90	$	1.65		$	1.85
Dividends Declared Per Share	$	0.45	$	0.45	$	0.45	$	0.90		$	0.90
Basic Weighted Average Shares	44,493,069		44,545,092		45,221,293		44,518,629			45,465,910
Diluted Weighted Average Shares	44,608,497		44,686,632		45,347,368		44,644,348			45,610,489

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)															Table 4
		Three Months Ended								Six Months Ended
		June 30,			March 31,			June 30,		June 30,
(dollars in thousands)		2013			2013			2012		2013			2012
Net Income		$	37,763		$	35,980		$	40,747	$	73,743		$	84,557
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities	(46,572		)	(9,641		)	3,387		(56,213		)	(3,067			)
	Defined Benefit Plans	201			78			153		279			306
Total Other Comprehensive Income (Loss)		(46,371		)	(9,563		)	3,540		(55,934		)	(2,761			)
Comprehensive Income (Loss)		$	(8,608	)	$	26,417		$	44,287	$	17,809		$	81,796

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition												Table 5
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands)	2013			2013			2012			2012
Assets
Interest-Bearing Deposits	$	4,635		$	4,840		$	3,393		$	3,057
Funds Sold	329,922			130,734			185,682			499,338
Investment Securities
Available-for-Sale	2,815,408			3,290,850			3,367,557			3,339,472
Held to Maturity (Fair Value of $4,036,197; $3,679,208;
$3,687,676; and $3,828,954)	4,027,829			3,597,810			3,595,065			3,729,665
Loans Held for Sale	25,880			24,015			21,374			14,223
Loans and Leases	5,859,152			5,782,969			5,854,521			5,671,483
Allowance for Loan and Lease Losses	(124,575		)	(126,878		)	(128,857		)	(132,443			)
Net Loans and Leases	5,734,577			5,656,091			5,725,664			5,539,040
Total Earning Assets	12,938,251			12,704,340			12,898,735			13,124,795
Cash and Noninterest-Bearing Deposits	136,386			147,796			163,786			131,845
Premises and Equipment	105,752			104,844			105,005			107,421
Customers' Acceptances	114			152			173			176
Accrued Interest Receivable	43,375			46,183			43,077			45,044
Foreclosed Real Estate	3,256			3,318			3,887			2,569
Mortgage Servicing Rights	27,631			26,540			25,240			23,254
Goodwill	31,517			31,517			31,517			31,517
Other Assets	447,136			460,977			456,952			449,005
Total Assets	$	13,733,418		$	13,525,667		$	13,728,372		$	13,915,626
Liabilities
Deposits
Noninterest-Bearing Demand	$	3,396,835		$	3,336,406		$	3,367,185		$	3,105,798
Interest-Bearing Demand	2,269,196			2,127,550			2,163,473			2,063,070
Savings	4,433,042			4,451,143			4,399,316			4,435,894
Time	1,350,125			1,336,761			1,599,508			1,943,231
Total Deposits	11,449,198			11,251,860			11,529,482			11,547,993
Funds Purchased	9,983			66,296			11,296			13,756
Securities Sold Under Agreements to Repurchase	866,237			748,718			758,947			1,065,653
Long-Term Debt	174,727			177,427			128,055			28,075
Banker's Acceptances	114			152			173			176
Retirement Benefits Payable	47,318			47,423			47,658			41,812
Accrued Interest Payable	4,399			5,772			4,776			5,114
Taxes Payable and Deferred Taxes	48,947			93,906			88,014			86,095
Other Liabilities	146,127			108,009			138,306			123,127
Total Liabilities	12,747,050			12,499,563			12,706,707			12,911,801
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: June 30, 2013 - 57,488,745 / 44,644,596;
March 31, 2013 - 57,465,782 / 44,861,335;
December 31, 2012 - 57,319,352 / 44,754,835;
and June 30, 2012 - 57,301,892 / 45,248,277)	572			572			571			571
Capital Surplus	518,804			517,327			515,619			511,729
Accumulated Other Comprehensive Income (Loss)	(26,726		)	19,645			29,208			32,502
Retained Earnings	1,115,594			1,098,674			1,084,477			1,044,588
Treasury Stock, at Cost (Shares: June 30, 2013 - 12,844,149;
March 31, 2013 - 12,604,447; December 31, 2012 - 12,564,517;
and June 30, 2012 - 12,053,615)	(621,876		)	(610,114		)	(608,210		)	(585,565			)
Total Shareholders' Equity	986,368			1,026,104			1,021,665			1,003,825
Total Liabilities and Shareholders' Equity	$	13,733,418		$	13,525,667		$	13,728,372		$	13,915,626

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																Table 6
							Accum.
							Other
							Compre-
	Common						hensive
	Shares		Common		Capital		Income			Retained			Treasury
(dollars in thousands)	Outstanding		Stock		Surplus		(Loss)			Earnings			Stock			Total
Balance as of December 31, 2012	44,754,835		$	571	$	515,619	$	29,208		$	1,084,477		$	(608,210	)	$	1,021,665
Net Income	—		—		—		—			73,743			—			73,743
Other Comprehensive Loss	—		—		—		(55,934		)	—			—			(55,934		)
Share-Based Compensation	—		—		2,732		—			—			—			2,732
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits	379,870		1		453		—			(2,235		)	10,294			8,513
Common Stock Repurchased	(490,109	)	—		—		—			—			(23,960		)	(23,960		)
Cash Dividends Paid ($0.90 per share)	—		—		—		—			(40,391		)	—			(40,391		)
Balance as of June 30, 2013	44,644,596		$	572	$	518,804	$	(26,726	)	$	1,115,594		$	(621,876	)	$	986,368
Balance as of December 31, 2011	45,947,116		$	571	$	507,558	$	35,263		$	1,003,938		$	(544,663	)	$	1,002,667
Net Income	—		—		—		—			84,557			—			84,557
Other Comprehensive Loss	—		—		—		(2,761		)	—			—			(2,761		)
Share-Based Compensation	—		—		3,723		—			—			—			3,723
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits	400,094		—		448		—			(2,758		)	10,684			8,374
Common Stock Repurchased	(1,098,933	)	—		—		—			—			(51,586		)	(51,586		)
Cash Dividends Paid ($0.90 per share)	—		—		—		—			(41,149		)	—			(41,149		)
Balance as of June 30, 2012	45,248,277		$	571	$	511,729	$	32,502		$	1,044,588		$	(585,565	)	$	1,003,825

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																		Table 7a
		Three Months Ended						Three Months Ended						Three Months Ended
		June 30, 2013						March 31, 2013						June 30, 2012
		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		$	4.5	$	—	0.06	%	$	4.0	$	—	0.32	%	$	3.0	$	—		0.12	%
Funds Sold		168.3		0.1		0.18		156.4		0.1		0.15		237.8		0.1			0.20
Investment Securities
	Available-for-Sale	3,212.2		17.4		2.17		3,322.1		18.2		2.19		3,410.4		19.4			2.27
	Held-to-Maturity	3,714.3		19.2		2.07		3,578.1		19.8		2.22		3,788.9		25.1			2.65
Loans Held for Sale		22.9		0.2		3.87		18.3		0.2		3.94		12.1		0.1			4.22
Loans and Leases 1
	Commercial and Industrial	855.5		7.8		3.65		822.9		7.6		3.75		786.3		7.7			3.93
	Commercial Mortgage	1,114.8		11.3		4.08		1,093.4		11.1		4.10		953.5		10.4			4.40
	Construction	107.5		1.2		4.61		115.5		1.4		5.04		99.7		1.3			5.07
	Commercial Lease Financing	265.2		1.6		2.36		272.7		1.6		2.41		284.5		1.7			2.36
	Residential Mortgage	2,252.1		25.5		4.53		2,311.6		25.9		4.49		2,371.7		27.9			4.71
	Home Equity	752.9		7.8		4.15		767.9		7.9		4.16		772.3		8.4			4.36
	Automobile	225.0		3.1		5.51		214.1		3.0		5.61		193.7		2.9			6.03
	Other 2	208.9		4.3		8.22		205.4		4.2		8.33		179.9		3.6			8.12
Total Loans and Leases		5,781.9		62.6		4.34		5,803.5		62.7		4.36		5,641.6		63.9			4.54
Other		78.6		0.3		1.45		79.1		0.3		1.44		80.0		0.3			1.41
Total Earning Assets 3		12,982.7		99.8		3.08		12,961.5		101.3		3.14		13,173.8		108.9			3.31
Cash and Noninterest-Bearing Deposits		136.8						141.9						131.7
Other Assets		452.8						454.0						445.0
Total Assets		$	13,572.3					$	13,557.4					$	13,750.5
Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,106.0	0.2		0.03		$	2,060.7	0.1		0.03		$	1,906.1	0.1			0.03
	Savings	4,451.1		1.0		0.09		4,408.4		1.0		0.09		4,444.5		1.1			0.10
	Time	1,381.4		1.4		0.42		1,512.9		1.5		0.41		1,253.9		2.0			0.63
Total Interest-Bearing Deposits		7,938.5		2.6		0.13		7,982.0		2.6		0.13		7,604.5		3.2			0.17
Short-Term Borrowings		29.4		—		0.12		58.1		—		0.15		15.0		—			0.14
Securities Sold Under Agreements
to Repurchase		800.1		6.7		3.34		756.1		7.0		3.71		1,808.5		7.3			1.59
Long-Term Debt		177.3		0.7		1.52		157.1		0.7		1.63		30.6		0.5			6.51
Total Interest-Bearing Liabilities		8,945.3		10.0		0.44		8,953.3		10.3		0.46		9,458.6		11.0			0.46
Net Interest Income				$	89.8					$	91.0					$	97.9
	Interest Rate Spread					2.64	%					2.68	%						2.85	%
	Net Interest Margin					2.77	%					2.82	%						2.98	%
Noninterest-Bearing Demand Deposits		3,306.1						3,305.5						3,017.9
Other Liabilities		286.5						263.8						261.8
Shareholders' Equity		1,034.4						1,034.8						1,012.2
Total Liabilities and
Shareholders' Equity		$	13,572.3					$	13,557.4					$	13,750.5
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 $2,490,000, $2,411,000 and $2,481,000 for the three months ended June 30,    2013, March 31, 2013, and June 30, 2012, respectively.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis												Table 7b
		Six Months Ended						Six Months Ended
		June 30, 2013						June 30, 2012
		Average		Income/		Yield/		Average		Income/			Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense			Rate
Earning Assets
Interest-Bearing Deposits		$	4.2	$	—	0.18	%	$	3.1	$	—		0.19	%
Funds Sold		162.4		0.1		0.16		250.1		0.2			0.20
Investment Securities
	Available-for-Sale	3,266.9		35.6		2.18		3,431.0		39.0			2.28
	Held-to-Maturity	3,646.6		39.1		2.14		3,763.1		51.5			2.74
Loans Held for Sale		20.6		0.4		3.90		12.0		0.3			4.22
Loans and Leases 1
	Commercial and Industrial	839.3		15.4		3.70		796.1		15.8			3.98
	Commercial Mortgage	1,104.1		22.4		4.09		947.6		21.0			4.45
	Construction	111.5		2.7		4.83		101.6		2.6			5.21
	Commercial Lease Financing	268.9		3.2		2.38		289.4		3.4			2.35
	Residential Mortgage	2,281.7		51.5		4.51		2,318.0		55.7			4.80
	Home Equity	760.4		15.7		4.15		775.6		16.9			4.39
	Automobile	219.5		6.0		5.56		193.4		5.9			6.12
	Other 2	207.2		8.5		8.28		180.8		7.3			8.10
Total Loans and Leases		5,792.6		125.4		4.35		5,602.5		128.6			4.60
Other		78.8		0.5		1.44		80.0		0.6			1.40
Total Earning Assets 3		12,972.1		201.1		3.11		13,141.8		220.2			3.36
Cash and Noninterest-Bearing Deposits		139.4						134.5
Other Assets		453.4						439.6
Total Assets		$	13,564.9					$	13,715.9
Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,083.4	0.3		0.03		$	1,886.6	0.2			0.03
	Savings	4,429.9		1.9		0.09		4,441.8		2.4			0.11
	Time	1,446.8		3.0		0.42		1,257.0		4.1			0.64
Total Interest-Bearing Deposits		7,960.1		5.2		0.13		7,585.4		6.7			0.18
Short-Term Borrowings		43.7		—		0.14		15.3		—			0.13
Securities Sold Under Agreements to Repurchase		778.2		13.8		3.52		1,862.3		14.6			1.55
Long-Term Debt		167.3		1.3		1.57		30.7		1.0			6.50
Total Interest-Bearing Liabilities		8,949.3		20.3		0.45		9,493.7		22.3			0.47
Net Interest Income				$	180.8					$	197.9
	Interest Rate Spread					2.66	%						2.89	%
	Net Interest Margin					2.80	%						3.02	%
Noninterest-Bearing Demand Deposits		3,305.8						2,940.9
Other Liabilities		275.2						264.9
Shareholders' Equity		1,034.6						1,016.4
Total Liabilities and Shareholders' Equity		$	13,564.9					$	13,715.9
1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.
3  Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $4,901,000 and $4,551,000 for the six months ended June 30,    2013 and 2012, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended June 30, 2013
	Compared to March 31, 2013
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Investment Securities
Available-for-Sale	$	(0.6	)	$	(0.2	)	$	(0.8	)
Held-to-Maturity	0.8			(1.4		)	(0.6		)
Loans and Leases
Commercial and Industrial	0.4			(0.2		)	0.2
Commercial Mortgage	0.3			(0.1		)	0.2
Construction	(0.1		)	(0.1		)	(0.2		)
Residential Mortgage	(0.7		)	0.3			(0.4		)
Home Equity	(0.1		)	—			(0.1		)
Automobile	0.2			(0.1		)	0.1
Other 2	0.1			—			0.1
Total Loans and Leases	0.1			(0.2		)	(0.1		)
Total Change in Interest Income	0.3			(1.8		)	(1.5		)
Change in Interest Expense:
Interest-Bearing Deposits
Demand	—			0.1			0.1
Time	(0.1		)	—			(0.1		)
Total Interest-Bearing Deposits	(0.1		)	0.1			—
Securities Sold Under Agreements to Repurchase	0.4			(0.7		)	(0.3		)
Long-Term Debt	0.1			(0.1		)	—
Total Change in Interest Expense	0.4			(0.7		)	(0.3		)
Change in Net Interest Income	$	(0.1	)	$	(1.1	)	$	(1.2	)
1  The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8b
	Three Months Ended June 30, 2013
	Compared to June 30, 2012
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Investment Securities
Available-for-Sale	$	(1.1	)	$	(0.9	)	$	(2.0	)
Held-to-Maturity	(0.5		)	(5.4		)	(5.9		)
Loans Held for Sale	0.1			—			0.1
Loans and Leases
Commercial and Industrial	0.7			(0.6		)	0.1
Commercial Mortgage	1.7			(0.8		)	0.9
Construction	—			(0.1		)	(0.1		)
Commercial Lease Financing	(0.1		)	—			(0.1		)
Residential Mortgage	(1.4		)	(1.0		)	(2.4		)
Home Equity	(0.2		)	(0.4		)	(0.6		)
Automobile	0.5			(0.3		)	0.2
Other 2	0.6			0.1			0.7
Total Loans and Leases	1.8			(3.1		)	(1.3		)
Total Change in Interest Income	0.3			(9.4		)	(9.1		)
Change in Interest Expense:
Interest-Bearing Deposits
Demand	—			0.1			0.1
Savings	—			(0.1		)	(0.1		)
Time	0.2			(0.8		)	(0.6		)
Total Interest-Bearing Deposits	0.2			(0.8		)	(0.6		)
Securities Sold Under Agreements to Repurchase	(5.5		)	4.9			(0.6		)
Long-Term Debt	0.8			(0.6		)	0.2
Total Change in Interest Expense	(4.5		)	3.5			(1.0		)
Change in Net Interest Income	$	4.8		$	(12.9	)	$	(8.1	)
1  The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8c
	Six Months Ended June 30, 2013
	Compared to June 30, 2012
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	(0.1	)	$	—		$	(0.1	)
Investment Securities
Available-for-Sale	(1.8		)	(1.6		)	(3.4		)
Held-to-Maturity	(1.5		)	(10.9		)	(12.4		)
Loans Held for Sale	0.1			—			0.1
Loans and Leases
Commercial and Industrial	0.8			(1.2		)	(0.4		)
Commercial Mortgage	3.2			(1.8		)	1.4
Construction	0.3			(0.2		)	0.1
Commercial Lease Financing	(0.3		)	0.1			(0.2		)
Residential Mortgage	(0.9		)	(3.3		)	(4.2		)
Home Equity	(0.3		)	(0.9		)	(1.2		)
Automobile	0.7			(0.6		)	0.1
Other 2	1.1			0.1			1.2
Total Loans and Leases	4.6			(7.8		)	(3.2		)
Other	(0.1		)	—			(0.1		)
Total Change in Interest Income	1.2			(20.3		)	(19.1		)
Change in Interest Expense:
Interest-Bearing Deposits
Demand	—			0.1			0.1
Savings	—			(0.5		)	(0.5		)
Time	0.5			(1.6		)	(1.1		)
Total Interest-Bearing Deposits	0.5			(2.0		)	(1.5		)
Securities Sold Under Agreements to Repurchase	(11.8		)	11.0			(0.8		)
Long-Term Debt	1.5			(1.2		)	0.3
Total Change in Interest Expense	(9.8		)	7.8			(2.0		)
Change in Net Interest Income	$	11.0		$	(28.1	)	$	(17.1	)
1  The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits									Table 9
	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,
(dollars in thousands)	2013		2013		2012		2013			2012
Salaries	$	28,690	$	29,078	$	27,831	$	57,768		$	56,518
Incentive Compensation	3,861		3,784		4,132		7,645			8,186
Share-Based Compensation	1,305		1,136		1,758		2,441			3,443
Commission Expense	1,983		1,781		1,754		3,764			3,290
Retirement and Other Benefits	3,594		4,368		3,481		7,962			7,871
Payroll Taxes	2,576		4,240		2,437		6,816			6,255
Medical, Dental, and Life Insurance	2,468		2,813		2,239		5,281			4,676
Separation Expense	864		1,475		405		2,339			822
Total Salaries and Benefits	$	45,341	$	48,675	$	44,037	$	94,016		$	91,061

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances										Table 10
		June 30,		March 31,		December 31,		September 30,			June 30,
(dollars in thousands)		2013		2013		2012		2012			2012
Commercial
	Commercial and Industrial	$	875,702	$	834,801	$	829,512	$	808,621		$	781,688
	Commercial Mortgage	1,160,977		1,104,718		1,097,425		1,039,556			961,984
	Construction	107,016		117,797		113,987		101,818			97,668
	Lease Financing	257,067		269,107		274,969		277,328			281,020
Total Commercial		2,400,762		2,326,423		2,315,893		2,227,323			2,122,360
Consumer
	Residential Mortgage	2,252,117		2,275,209		2,349,916		2,392,871			2,401,331
	Home Equity	751,790		757,877		770,376		770,284			766,839
	Automobile	233,475		220,362		209,832		200,788			194,339
	Other 1	221,008		203,098		208,504		191,038			186,614
Total Consumer		3,458,390		3,456,546		3,538,628		3,554,981			3,549,123
Total Loans and Leases		$	5,859,152	$	5,782,969	$	5,854,521	$	5,782,304		$	5,671,483
Higher Risk Loans and Leases Outstanding
		June 30,		March 31,		December 31,		September 30,			June 30,
(dollars in thousands)		2013		2013		2012		2012			2012
Residential Land Loans 2		$	13,708	$	13,996	$	14,984	$	16,513		$	16,703
Home Equity Loans 3		13,578		20,786		19,914		19,774			22,029
Air Transportation 4		26,436		27,115		27,782		27,765			27,633
Total Higher Risk Loans		$	53,722	$	61,897	$	62,680	$	64,052		$	66,365
1  Comprised of other revolving credit, installment, and lease financing.
2  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.
3  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%.
4  We consider all of our air transportation leases to be of higher risk due to the weak financial profile of the industry.
Deposits
		June 30,		March 31,		December 31,		September 30,			June 30,
(dollars in thousands)		2013		2013		2012		2012			2012
Consumer		$	5,626,515	$	5,607,862	$	5,537,624	$	5,369,724		$	5,360,325
Commercial		4,537,120		4,505,835		4,576,410		4,394,745			4,403,095
Public and Other		1,285,563		1,138,163		1,415,448		1,456,078			1,784,573
Total Deposits		$	11,449,198	$	11,251,860	$	11,529,482	$	11,220,547		$	11,547,993

Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More																	Table 11
			June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)			2013			2013			2012			2012			2012
Non-Performing Assets
Non-Accrual Loans and Leases
	Commercial
		Commercial and Industrial	$	4,909		$	5,033		$	5,534		$	5,635		$	5,778
		Commercial Mortgage	2,772			2,910			3,030			2,671			2,737
		Construction	—			—			833			953			1,182
		Lease Financing	16			—			—			—			—
	Total Commercial		7,697			7,943			9,397			9,259			9,697
	Consumer
		Residential Mortgage	22,876			24,700			21,725			25,456			26,803
		Home Equity	2,602			2,413			2,074			2,502			2,425
	Total Consumer		25,478			27,113			23,799			27,958			29,228
Total Non-Accrual Loans and Leases			33,175			35,056			33,196			37,217			38,925
Foreclosed Real Estate			3,256			3,318			3,887			3,067			2,569
Total Non-Performing Assets			$	36,431		$	38,374		$	37,083		$	40,284		$	41,494
Accruing Loans and Leases Past Due 90 Days or More
Commercial
	Commercial and Industrial		$	—		$	230		$	27		$	—		$	1
Total Commercial			—			230			27			—			1
Consumer
	Residential Mortgage		6,876			5,967			6,908			3,988			4,229
	Home Equity		2,768			4,538			2,701			2,755			2,445
	Automobile		95			241			186			154			98
	Other 1		855			676			587			578			395
Total Consumer			10,594			11,422			10,382			7,475			7,167
Total Accruing Loans and Leases Past Due 90 Days or More			$	10,594		$	11,652		$	10,409		$	7,475		$	7,168
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More			$	39,154		$	30,065		$	31,844		$	31,426		$	31,124
Total Loans and Leases			$	5,859,152		$	5,782,969		$	5,854,521		$	5,782,304		$	5,671,483
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.57		%	0.61		%	0.57		%	0.64		%	0.69			%
Ratio of Non-Performing Assets to Total Loans and Leases,
	and Foreclosed Real Estate		0.62		%	0.66		%	0.63		%	0.70		%	0.73			%
Ratio of Commercial Non-Performing Assets to Total Commercial
	Loans and Leases, and Commercial Foreclosed Real Estate		0.37		%	0.39		%	0.45		%	0.46		%	0.51			%
Ratio of Consumer Non-Performing Assets to Total Consumer
	Loans and Leases and Consumer Foreclosed Real Estate		0.80		%	0.85		%	0.75		%	0.84		%	0.87			%
Ratio of Non-Performing Assets and Accruing Loans and Leases
	Past Due 90 Days or More to Total Loans and Leases,
	and Foreclosed Real Estate		0.80		%	0.86		%	0.81		%	0.83		%	0.86			%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter			$	38,374		$	37,083		$	40,284		$	41,494		$	41,406
Additions			2,647			7,304			3,837			2,878			7,574
Reductions
	Payments		(1,306		)	(2,630		)	(3,994		)	(2,408		)	(2,942			)
	Return to Accrual Status		(1,978		)	(1,132		)	(728		)	(1,083		)	(2,085			)
	Sales of Foreclosed Real Estate		(1,257		)	(1,910		)	(1,354		)	(424		)	(2,247			)
	Charge-offs/Write-downs		(49		)	(341		)	(962		)	(173		)	(212			)
Total Reductions			(4,590		)	(6,013		)	(7,038		)	(4,088		)	(7,486			)
Balance at End of Quarter			$	36,431		$	38,374		$	37,083		$	40,284		$	41,494
1  Comprised of other revolving credit, installment, and lease financing.

Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses																	Table 12
			Three Months Ended									Six Months Ended
			June 30,			March 31,			June 30,			June 30,
(dollars in thousands)			2013			2013			2012			2013			2012
Balance at Beginning of Period			$	132,297		$	134,276		$	141,025		$	134,276		$	144,025
Loans and Leases Charged-Off
	Commercial
		Commercial and Industrial	(266		)	(382		)	(1,078		)	(648		)	(2,509			)
		Construction	—			—			—			—			(330			)
	Consumer
		Residential Mortgage	(188		)	(1,235		)	(1,369		)	(1,423		)	(2,949			)
		Home Equity	(2,016		)	(1,377		)	(1,657		)	(3,393		)	(4,098			)
		Automobile	(429		)	(575		)	(438		)	(1,004		)	(964			)
		Other 1	(1,805		)	(1,730		)	(1,394		)	(3,535		)	(2,845			)
Total Loans and Leases Charged-Off			(4,704		)	(5,299		)	(5,936		)	(10,003		)	(13,695			)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
		Commercial and Industrial	437			438			524			875			2,457
		Commercial Mortgage	14			10			10			24			34
		Construction	8			338			—			346			—
		Lease Financing	11			11			11			22			83
	Consumer
		Residential Mortgage	634			788			376			1,422			1,042
		Home Equity	335			748			165			1,083			735
		Automobile	456			461			482			917			1,020
		Other 1	506			526			577			1,032			1,182
Total Recoveries on Loans and Leases Previously Charged-Off			2,401			3,320			2,145			5,721			6,553
Net Loans and Leases Charged-Off			(2,303		)	(1,979		)	(3,791		)	(4,282		)	(7,142			)
Provision for Credit Losses			—			—			628			—			979
Provision for Unfunded Commitments			500			—			—			500			—
Balance at End of Period 2			$	130,494		$	132,297		$	137,862		$	130,494		$	137,862
Components
Allowance for Loan and Lease Losses			$	124,575		$	126,878		$	132,443		$	124,575		$	132,443
Reserve for Unfunded Commitments			5,919			5,419			5,419			5,919			5,419
Total Reserve for Credit Losses			$	130,494		$	132,297		$	137,862		$	130,494		$	137,862
Average Loans and Leases Outstanding			$	5,781,898		$	5,803,503		$	5,641,588		$	5,792,641		$	5,602,473
Ratio of Net Loans and Leases Charged-Off to
	Average Loans and Leases Outstanding (annualized)		0.16		%	0.14		%	0.27		%	0.15		%	0.26			%
Ratio of Allowance for Loan and Lease Losses to Loans
	and Leases Outstanding		2.13		%	2.19		%	2.34		%	2.13		%	2.34			%
1  Comprised of other revolving credit, installment, and lease financing.
2  Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements    of Condition.

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information													Table 13a
	Retail			Commercial			Investment			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Services			and Other			Total
Three Months Ended June 30, 2013
Net Interest Income	$	35,725		$	28,554		$	2,594		$	20,467		$	87,340
Provision for Credit Losses	1,857			472			(12		)	(2,317		)	—
Net Interest Income After Provision for Credit Losses	33,868			28,082			2,606			22,784			87,340
Noninterest Income	20,871			9,117			15,288			2,765			48,041
Noninterest Expense	(43,540		)	(22,011		)	(13,135		)	(2,495		)	(81,181		)
Income Before Income Taxes	11,199			15,188			4,759			23,054			54,200
Provision for Income Taxes	(4,144		)	(5,177		)	(1,761		)	(5,355		)	(16,437		)
Net Income	7,055			10,011			2,998			17,699			37,763
Total Assets as of June 30, 2013	$	3,283,634		$	2,567,461		$	188,871		$	7,693,452		$	13,733,418
Three Months Ended June 30, 2012 1
Net Interest Income	$	39,118		$	30,817		$	3,150		$	22,296		$	95,381
Provision for Credit Losses	3,334			157			301			(3,164		)	628
Net Interest Income After Provision for Credit Losses	35,784			30,660			2,849			25,460			94,753
Noninterest Income	22,376			8,552			14,071			1,849			46,848
Noninterest Expense	(44,164		)	(21,577		)	(13,415		)	(1,591		)	(80,747		)
Income Before Income Taxes	13,996			17,635			3,505			25,718			60,854
Provision for Income Taxes	(5,178		)	(6,042		)	(1,297		)	(7,590		)	(20,107		)
Net Income	8,818			11,593			2,208			18,128			40,747
Total Assets as of June 30, 2012 1	$	3,344,319		$	2,289,255		$	189,008		$	8,093,044		$	13,915,626
1 Certain prior period information has been reclassified to conform to current presentation.

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information										Table 13b
	Retail			Commercial			Investment			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Services			and Other			Total
Six Months Ended June 30, 2013
Net Interest Income	$	71,634		$	58,426		$	5,365		$	40,475		$	175,900
Provision for Credit Losses	4,035			301			(33		)	(4,303		)	—
Net Interest Income After Provision for Credit Losses	67,599			58,125			5,398			44,778			175,900
Noninterest Income	41,355			18,517			30,098			5,849			95,819
Noninterest Expense	(87,994		)	(44,895		)	(27,270		)	(5,409		)	(165,568		)
Income Before Income Taxes	20,960			31,747			8,226			45,218			106,151
Provision for Income Taxes	(7,755		)	(10,849		)	(3,044		)	(10,760		)	(32,408		)
Net Income	13,205			20,898			5,182			34,458			73,743
Total Assets as of June 30, 2013	$	3,283,634		$	2,567,461		$	188,871		$	7,693,452		$	13,733,418
Six Months Ended June 30, 2012 1
Net Interest Income	$	79,303		$	62,259		$	6,483		$	45,284		$	193,329
Provision for Credit Losses	7,364			(511		)	289			(6,163		)	979
Net Interest Income After Provision for Credit Losses	71,939			62,770			6,194			51,447			192,350
Noninterest Income	41,916			20,129			27,741			5,144			94,930
Noninterest Expense	(88,776		)	(45,099		)	(28,177		)	(3,902		)	(165,954		)
Income Before Income Taxes	25,079			37,800			5,758			52,689			121,326
Provision for Income Taxes	(9,279		)	(9,063		)	(2,130		)	(16,297		)	(36,769		)
Net Income	15,800			28,737			3,628			36,392			84,557
Total Assets as of June 30, 2012 1	$	3,344,319		$	2,289,255		$	189,008		$	8,093,044		$	13,915,626
1 Certain prior period information has been reclassified to conform to current presentation.

Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data															Table 14
	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands, except per share amounts)	2013			2013			2012			2012			2012
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	62,729		$	62,820		$	64,627		$	64,668		$	63,910
Income on Investment Securities
Available-for-Sale	15,073			15,851			15,349			15,922			16,988
Held-to-Maturity	19,189			19,854			20,253			23,232			25,054
Deposits	1			3			3			3			1
Funds Sold	74			59			180			105			119
Other	285			284			283			283			281
Total Interest Income	97,351			98,871			100,695			104,213			106,353
Interest Expense
Deposits	2,579			2,646			2,753			2,931			3,219
Securities Sold Under Agreements to Repurchase	6,751			7,005			7,158			7,185			7,250
Funds Purchased	10			22			4			7			5
Long-Term Debt	671			638			470			458			498
Total Interest Expense	10,011			10,311			10,385			10,581			10,972
Net Interest Income	87,340			88,560			90,310			93,632			95,381
Provision for Credit Losses	—			—			—			—			628
Net Interest Income After Provision for Credit Losses	87,340			88,560			90,310			93,632			94,753
Noninterest Income
Trust and Asset Management	12,089			11,886			12,066			11,050			11,195
Mortgage Banking	5,820			6,411			11,268			11,745			7,581
Service Charges on Deposit Accounts	9,112			9,301			9,459			9,346			9,225
Fees, Exchange, and Other Service Charges	13,133			11,934			12,333			11,907			12,326
Investment Securities Gains, Net	—			—			—			13			—
Insurance	2,393			2,325			2,550			2,326			2,399
Bank-Owned Life Insurance	1,335			1,297			1,557			2,028			1,739
Other	4,159			4,624			3,749			3,959			2,383
Total Noninterest Income	48,041			47,778			52,982			52,374			46,848
Noninterest Expense
Salaries and Benefits	45,341			48,675			46,116			47,231			44,037
Net Occupancy	9,661			9,635			11,867			10,524			10,058
Net Equipment	4,380			4,577			4,705			4,523			4,669
Data Processing	3,050			3,266			3,058			3,397			3,160
Professional Fees	2,391			2,226			2,611			2,494			2,386
FDIC Insurance	1,949			1,949			1,892			1,822			2,088
Other	14,409			14,059			13,207			14,887			14,349
Total Noninterest Expense	81,181			84,387			83,456			84,878			80,747
Income Before Provision for Income Taxes	54,200			51,951			59,836			61,128			60,854
Provision for Income Taxes	16,437			15,971			19,549			19,896			20,107
Net Income	$	37,763		$	35,980		$	40,287		$	41,232		$	40,747
Basic Earnings Per Share	$	0.85		$	0.81		$	0.90		$	0.92		$	0.90
Diluted Earnings Per Share	$	0.85		$	0.81		$	0.90		$	0.92		$	0.90
Balance Sheet Totals
Loans and Leases	$	5,859,152		$	5,782,969		$	5,854,521		$	5,782,304		$	5,671,483
Total Assets	13,733,418			13,525,667			13,728,372			13,382,425			13,915,626
Total Deposits	11,449,198			11,251,860			11,529,482			11,220,547			11,547,993
Total Shareholders' Equity	986,368			1,026,104			1,021,665			1,024,562			1,003,825
Performance Ratios
Return on Average Assets	1.12		%	1.08		%	1.19		%	1.22		%	1.19			%
Return on Average Shareholders' Equity	14.64			14.10			15.47			16.02			16.19
Efficiency Ratio 1	59.96			61.90			58.24			58.13			56.77
Net Interest Margin 2	2.77			2.82			2.87			2.98			2.98
1  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
2  Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.

Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends													Table 15
	Five Months Ended				Year Ended
($ in millions; jobs in thousands)	May 31, 2013				December 31, 2012						December 31, 2011
Hawaii Economic Trends
State General Fund Revenues 1	$	2,364.1	7.7	%	$	5,259.1			12.8	%	$	4,662.5				8.1		%
General Excise and Use Tax Revenue 1	$	1,282.8	7.7	%	$	2,844.7			9.9	%	$	2,588.5				8.8		%
Jobs 2	615.8				619.3						614.2
			June 30,		March 31,				December 31,
(spot rates)			2013		2013				2012		2011					2010
Unemployment 3
Statewide, seasonally adjusted			4.6	%	5.1			%	5.2	%	6.2				%	6.3		%
Oahu			4.7		4.6				4.3		5.4					4.8
Island of Hawaii			7.5		7.6				6.9		8.9					8.6
Maui			5.4		5.7				5.2		7.1					7.4
Kauai			5.9		6.4				6.0		7.8					7.8
			June 30,		March 31,				December 31,
(percentage change, except months of inventory)			2013		2013				2012		2011					2010
Housing Trends (Single Family Oahu) 4
Median Home Price			0.8	%	(2.7		)	%	7.8	%	(3.0			)	%	3.1		%
Home Sales Volume (units)			11.6	%	6.9			%	6.5	%	(2.7			)	%	13.4		%
Months of Inventory			2.7		2.4				2.5		4.8					6.0
					Monthly Visitor Arrivals,						Percentage Change
(in thousands)					Seasonally Adjusted						from Previous Month
Tourism 5
May 31, 2013									678.3							2.4		%
April 30, 2013									662.1							(5.4	)
March 31, 2013									699.9							4.1
February 28, 2013									672.5							(0.2	)
January 31, 2013									673.5							(0.4	)
December 30, 2012									676.0							(2.6	)
November 30, 2012									693.7							5.5
October 31, 2012									657.4							0.6
September 30, 2012									653.2							(0.4	)
August 31, 2012									656.1							3.1
July 31, 2012									636.4							(2.7	)
June 30, 2012									653.9							0.7
May 30, 2012									649.3							1.5
April 30, 2012									639.5							(2.0	)
March 31, 2012									652.4							3.4
February 29, 2012									631.2							(1.1	)
January 31, 2012									638.2							1.6
December 31, 2011									628.3							2.0
November 30, 2011									616.3							0.9
October 31, 2011									610.8							(1.7	)
September 30, 2011									621.6							5.5
August 31, 2011									589.1							0.4
July 31, 2011									586.8							1.3
June 30, 2011									579.3							0.5
May 31, 2011									576.6							(1.5	)
1 Source: Hawaii Department of Business, Economic Development & Tourism
2 Source: U. S. Bureau of Labor, preliminary figure
3 Source: Hawaii Department of Labor and Industrial Relations
4 Source: Honolulu Board of REALTORS
5 Source: University of Hawaii Economic Research Organization
Note: Certain prior period seasonally adjusted information has been revised.