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

Bank of Hawaii Corporation Third Quarter 2013 Financial Results

•Diluted Earnings Per Share $0.85

•Net Income $37.7 Million

•Board of Directors Declares Dividend of $0.45 Per Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (October 28, 2013) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.85 for the third quarter of 2013, unchanged from the previous quarter, and down from $0.92 in the same quarter last year. Net income for the third quarter of 2013 was $37.7 million compared with net income of $37.8 million in the second quarter of 2013 and net income of $41.2 million in the third quarter of 2012.

“Bank of Hawaii Corporation continued to perform well during the third quarter of 2013,” said Peter Ho, Chairman, President and CEO.  “Our loan balances grew 3 percent from the second quarter and 4 percent from the third quarter last year.  Consumer and commercial deposit balances grew 2 percent from the previous quarter and 6 percent from the same quarter from last year.  The Hawaii economy is benefitting from a continued strong visitor industry and growing construction activity. Expenses remained well controlled as did credit costs. Importantly, the steepening yield curve is beginning to have a positive impact on our net interest income and net interest margin.”

The return on average assets for the third quarter of 2013 was 1.09 percent, down from 1.12 percent in the previous quarter and 1.22 percent during the same quarter last year. The return on average equity for the third quarter of 2013 was 15.02 percent, up from 14.64 percent for the second quarter of 2013 and down from 16.02 percent in the third quarter of 2012.

For the nine-month period ended September 30, 2013, net income was $111.4 million, down from net income of $125.8 million for the same period last year. Diluted earnings per share were $2.50 for the nine-month period in 2013 compared with diluted earnings per share of $2.77 for the same period in 2012. The year-to-date return on average assets was 1.09 percent compared with 1.23 percent for the same period in 2012. The year-to-date return on average equity was 14.59 percent compared with 16.49 percent for the nine months ended September 30, 2012.

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Bank of Hawaii Corporation Third Quarter 2013 Financial Results Page 2

Financial Highlights

Net interest income, on a taxable equivalent basis, for the third quarter of 2013 was $93.5 million, up $3.7 million from net interest income of $89.8 million in the second quarter of 2013 and down $2.7 million from net interest income of $96.2 million in the third quarter of 2012. Net interest income for the nine-month period in 2013 was $274.3 million compared with net interest income of $294.0 million for the same period in 2012. Analyses of the changes in net interest income are included in Tables 8a, 8b, and 8c.

The net interest margin was 2.83 percent for the third quarter of 2013, a 6 basis point increase from the net interest margin of 2.77 percent in the second quarter of 2013 and a 15 basis point decrease from the net interest margin of 2.98 percent in the third quarter of 2012. The net interest margin for the first nine months of 2013 was 2.81 percent compared with 3.01 percent for the same nine-month period last year.

Noninterest income was $45.1 million in the third quarter of 2013, a decrease of $2.9 million compared with noninterest income of $48.0 million in the second quarter of 2013, and a decrease of $7.2 million compared with noninterest income of $52.4 million in the third quarter of 2012. Noninterest income included mortgage banking revenue of $4.1 million in the third quarter of 2013 compared with $5.8 million in the previous quarter and $11.7 million in the same quarter last year. Noninterest income for the nine-months ended September 30, 2013 was $140.9 million, a decrease of $6.4 million compared with noninterest income of $147.3 million for the same period in 2012.

Noninterest expense was $83.0 million in the third quarter of 2013, an increase of $1.8 million compared with noninterest expense of $81.2 million in the second quarter of 2013, and a decrease of $1.9 million compared with noninterest expense of $84.9 million in the third quarter last year. Noninterest expense in the third quarter of 2013 included separation expense of $1.8 million. Separation expenses were $0.9 million in the second quarter of 2013 and $1.0 million in the same quarter last year. The components of salaries and benefits are presented in Table 9. Noninterest expense for the nine-months ended September 30, 2013 was $248.5 million, a decrease of $2.3 million compared with noninterest expense of $250.8 million for the same period in 2012.

The efficiency ratio for the third quarter of 2013 was 61.01 percent, up from 59.96 percent in the previous quarter and 58.13 percent in the same quarter last year. The efficiency ratio for the nine-month period ended September 30, 2013 was 60.96 percent, up from 57.76 percent for the same period last year.

The effective tax rate for the third quarter of 2013 was 28.91 percent compared with 30.33 percent in the previous quarter and 32.55 percent during the same quarter last year. The effective tax rate for the nine-month period ended September 30, 2013 was 29.99 percent compared to 31.06 percent for the same period last year. The lower effective tax rates during 2013 were 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.

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Bank of Hawaii Corporation Third Quarter 2013 Financial Results Page 3

Asset Quality

The Company’s asset quality was stable during the third quarter of 2013. Total non-performing assets were $33.8 million at September 30, 2013, down from $36.4 million at June 30, 2013 and $40.3 million at September 30, 2012. Non-performing assets continue to remain above historical levels due to the lengthy judicial foreclosure process for residential mortgage loans. Non-performing assets, as a percentage of total loans and leases and foreclosed real estate, were 0.56 percent at September 30, 2013, down from 0.62 percent at June 30, 2013 and 0.70 percent at September 30, 2012.

Accruing loans and leases past due 90 days or more were $11.4 million at September 30, 2013, up from $10.6 million at June 30, 2013 and $7.5 million at September 30, 2012. The increase in consumer delinquencies was largely due to residential mortgage loans 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 $39.8 million at September 30, 2013. Restructured loans and leases are 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 third quarter of 2013 were $0.9 million or 0.06 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 $3.8 million. Net charge-offs during the second quarter of 2013 were $2.3 million, or 0.16 percent annualized of total average loans and leases outstanding, and were comprised of $4.7 million in charge-offs partially offset by recoveries of $2.4 million. Net charge-offs in the third quarter of 2012 were $1.5 million or 0.10 percent annualized of total average loans and leases outstanding, and were comprised of $5.0 million in charge-offs partially offset by recoveries of $3.6 million. Net charge-offs in the nine-month period ended September 30, 2013 were $5.2 million, or 0.12 percent annualized of total average loans and leases outstanding compared with net charge-offs of $8.6 million, or 0.20 percent annualized of total average loans and leases outstanding for the same period in 2012.

The allowance for loan and lease losses was reduced to $123.7 million at September 30, 2013. The ratio of the allowance for loan and lease losses to loans and leases outstanding was 2.06 percent at September 30, 2013, a decrease of 7 basis points from June 30, 2013. The reserve for unfunded commitments at September 30, 2013 was $6.1 million, an increase of $0.1 million from June 30, 2013 and $0.6 million from September 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.

Other Financial Highlights

Total assets were $13.85 billion at September 30, 2013, an increase from total assets of $13.73 billion at June 30, 2013 and total assets of $13.38 billion at September 30, 2012. Average assets were $13.77 billion during the third quarter of 2013, up from average assets of $13.57 billion during the previous quarter and average assets of $13.49 billion during the same quarter last year.

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Bank of Hawaii Corporation Third Quarter 2013 Financial Results Page 4

The total investment securities portfolio totaled $6.91 billion at September 30, 2013, an increase from total securities of $6.84 billion at June 30, 2013 and $6.60 billion at September 30, 2012. The portfolio remains largely comprised of securities issued by U.S. government agencies and includes $4.63 billion in securities held to maturity and $2.28 billion in securities available for sale. 

Total loans and leases were $6.01 billion at September 30, 2013, up from $5.86 billion at June 30, 2013 and $5.78 billion at September 30, 2012. The commercial loan portfolio was $2.48 billion at the end of the third quarter of 2013, up from commercial loans of $2.40 billion at the end of the second quarter of 2013 and $2.23 billion at the end of the same quarter last year. Consumer loans were $3.53 billion at September 30, 2013, up from consumer loans of $3.46 billion at the end of the second quarter of 2013, and down slightly from $3.55 billion at the end of the third quarter last year. Average total loans and leases were $5.89 billion during the third quarter of 2013, up from $5.78 billion during the previous quarter and $5.72 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 $11.61 billion at September 30, 2013, an increase from total deposits of $11.45 billion at June 30, 2013 and $11.22 billion at September 30, 2012 due to continued growth in consumer and commercial deposits. Average total deposits were $11.48 billion in the third quarter of 2013, up from average deposits of $11.24 billion during the previous quarter, and up from average deposits of $11.30 billion during the same quarter last year.

During the third quarter of 2013, the Company repurchased 164.5 thousand shares of common stock at a total cost of $8.9 million under its share repurchase program. The average cost was $54.18 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through September 30, 2013, the Company has repurchased 50.8 million shares and returned $1.86 billion to shareholders at an average cost of $36.50 per share. The remaining buyback authority under the share repurchase program was $39.0 million at September 30, 2013. From October 1 through October 25, 2013, the Company repurchased an additional 19.0 thousand shares of common stock at an average cost of $55.31 per share.

Total shareholders’ equity was $0.99 billion at September 30, 2013, up slightly from June 30, 2013 and down from $1.02 billion at September 30, 2012. The ratio of tangible common equity to risk-weighted assets was 15.43 percent at the end of the third quarter of 2013, compared with 15.65 percent at the end of the second quarter of 2013, and 17.43 percent at the end of the same quarter last year. The Tier 1 leverage ratio at September 30, 2013 was 6.95 percent, unchanged from June 30, 2013 and up from 6.78 percent at September 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 December 13, 2013 to shareholders of record at the close of business on November 29, 2013.

Hawaii Economy

General economic conditions in Hawaii continued to improve during the third quarter of 2013, led by a strong tourism industry, relatively low unemployment, and rising real estate prices. For the first eight months of 2013, total visitor arrivals and visitor spending both increased by 5.1%

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Bank of Hawaii Corporation Third Quarter 2013 Financial Results Page 5

compared to the same period in 2012. We continue to experience strong visitor spending growth from U.S. Mainland visitors. The statewide seasonally-adjusted unemployment rate was at 4.3% in August 2013, compared to 7.3% nationally. For the first nine months of 2013, the volume of single-family home sales on Oahu was 7.0% higher compared to the same period in 2012 while the volume of condominium sales on Oahu was 16.5% higher compared to the same period in 2012. The median price of single-family home sales on Oahu was 3.3% higher for the first nine months of 2013 compared to same period in 2012, while the median price of condominium sales on Oahu was 5.4% higher compared to the same period in 2012. As of September 30, 2013, months of inventory of single-family homes and condominiums on Oahu remained low at approximately 2.8 months and 3.0 months, respectively.

Conference Call Information

The Company will review its third 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 website, www.boh.com. Conference call participants located in the United States or Canada should dial 1 (800) 447-0521. All other international call participants should dial 1 (847) 413-3238. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning Monday, October 28, 2013 by calling 1 (888) 843-7419 in the United States or Canada and 1 (630) 652-3042 from other international locations and entering the pass code number 35825438# when prompted. A replay will also be available via the Investor Relations link on the Company’s website.

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									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share amounts)	2013			2013			2012			2013				2012
For the Period:
Operating Results
Net Interest Income	$	90,887		$	87,340		$	93,632		$	266,787			$	286,961
Provision for Credit Losses	—			—			—			—				979
Total Noninterest Income	45,126			48,041			52,374			140,945				147,304
Total Noninterest Expense	82,977			81,181			84,878			248,545				250,832
Net Income	37,704			37,763			41,232			111,447				125,789
Basic Earnings Per Share	0.85			0.85			0.92			2.51				2.78
Diluted Earnings Per Share	0.85			0.85			0.92			2.50				2.77
Dividends Declared Per Share	0.45			0.45			0.45			1.35				1.35
Performance Ratios
Return on Average Assets	1.09		%	1.12		%	1.22		%	1.09		%		1.23		%
Return on Average Shareholders' Equity	15.02			14.64			16.02			14.59				16.49
Efficiency Ratio 1	61.01			59.96			58.13			60.96				57.76
Net Interest Margin 2	2.83			2.77			2.98			2.81				3.01
Dividend Payout Ratio 3	52.94			52.94			48.91			53.78				48.56
Average Shareholders' Equity to Average Assets	7.23			7.62			7.59			7.49				7.47
Average Balances
Average Loans and Leases	$	5,892,888		$	5,781,898		$	5,716,421		$	5,826,424			$	5,640,733
Average Assets	13,769,699			13,572,329			13,490,835			13,633,907				13,640,304
Average Deposits	11,479,185			11,244,600			11,301,668			11,337,792				10,786,654
Average Shareholders' Equity	995,661			1,034,366			1,023,804			1,021,480				1,018,903
Per Share of Common Stock
Book Value	$	22.29		$	22.09		$	22.77		$	22.29			$	22.77
Market Value
Closing	54.45			50.32			45.62			54.45				45.62
High	57.13			52.17			48.92			57.13				49.99
Low	50.50			46.04			45.29			44.88				44.02
				September 30,			June 30,			December 31,				September 30,
				2013			2013			2012				2012
As of Period End:
Balance Sheet Totals
Loans and Leases				$	6,006,642		$	5,859,152		$	5,854,521			$	5,782,304
Total Assets				13,848,871			13,733,418			13,728,372				13,382,425
Total Deposits				11,608,134			11,449,198			11,529,482				11,220,547
Long-Term Debt				174,717			174,727			128,055				28,065
Total Shareholders' Equity				992,686			986,368			1,021,665				1,024,562
Asset Quality
Allowance for Loan and Lease Losses				$	123,680		$	124,575		$	128,857			$	130,971
Non-Performing Assets				33,832			36,431			37,083				40,284
Financial Ratios
Allowance to Loans and Leases Outstanding				2.06		%	2.13		%	2.20		%		2.27		%
Tier 1 Capital Ratio				15.42			15.53			16.13				16.12
Total Capital Ratio				16.68			16.79			17.39				17.39
Tier 1 Leverage Ratio				6.95			6.95			6.83				6.78
Total Shareholders' Equity to Total Assets				7.17			7.18			7.44				7.66
Tangible Common Equity to Tangible Assets 4				6.96			6.97			7.23				7.44
Tangible Common Equity to Risk-Weighted Assets 4				15.43			15.65			17.24				17.43
Non-Financial Data
Full-Time Equivalent Employees				2,205			2,227			2,276				2,304
Branches and Offices				74			75			76				77
ATMs				468			486			494				495
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
		September 30,			June 30,			December 31,			September 30,
(dollars in thousands)		2013			2013			2012			2012
Total Shareholders' Equity		$	992,686		$	986,368		$	1,021,665		$	1,024,562
Less:	Goodwill	31,517			31,517			31,517			31,517
	Intangible Assets	—			8			33			46
Tangible Common Equity		$	961,169		$	954,843		$	990,115		$	992,999
Total Assets		$	13,848,871		$	13,733,418		$	13,728,372		$	13,382,425
Less:	Goodwill	31,517			31,517			31,517			31,517
	Intangible Assets	—			8			33			46
Tangible Assets		$	13,817,354		$	13,701,893		$	13,696,822		$	13,350,862
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements		$	6,228,293		$	6,099,770		$	5,744,722		$	5,697,581
Total Shareholders' Equity to Total Assets		7.17		%	7.18		%	7.44		%	7.66		%
Tangible Common Equity to Tangible Assets (Non-GAAP)		6.96		%	6.97		%	7.23		%	7.44		%
Tier 1 Capital Ratio		15.42		%	15.53		%	16.13		%	16.12		%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)		15.43		%	15.65		%	17.24		%	17.43		%

Bank of Hawaii Corporation and Subsidiaries
Net Significant Items															Table 2
	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 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	896			2,303			1,472			5,178			7,635
Separation Expense	(1,753		)	(864		)	(1,016		)	(4,092		)	(1,838			)
PC Refresh	—			—			—			—			(1,163			)
Significant Items Before the Provision (Benefit)
for Income Taxes	(857		)	1,439			456			1,086			7,107
Income Taxes Impact Related to Lease Transactions	—			—			—			—			(2,733			)
Release of Tax Reserve	(1,267		)	(1,090		)	—			(2,357		)	—
Income Tax Impact	(300		)	504			159			380			1,271
Net Significant Items	$	710		$	2,025		$	297		$	3,063		$	8,569

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income											Table 3
	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
(dollars in thousands, except per share amounts)	2013		2013		2012		2013		2012
Interest Income
Interest and Fees on Loans and Leases	$	63,918	$	62,729	$	64,668	$	189,467	$	193,269
Income on Investment Securities
Available-for-Sale	12,038		15,073		15,922		42,962		50,623
Held-to-Maturity	24,137		19,189		23,232		63,180		74,699
Deposits	3		1		3		7		6
Funds Sold	177		74		105		310		353
Other	301		285		283		870		844
Total Interest Income	100,574		97,351		104,213		296,796		319,794
Interest Expense
Deposits	2,500		2,579		2,931		7,725		9,623
Securities Sold Under Agreements to Repurchase	6,551		6,751		7,185		20,307		21,739
Funds Purchased	4		10		7		36		17
Long-Term Debt	632		671		458		1,941		1,454
Total Interest Expense	9,687		10,011		10,581		30,009		32,833
Net Interest Income	90,887		87,340		93,632		266,787		286,961
Provision for Credit Losses	—		—		—		—		979
Net Interest Income After Provision for Credit Losses	90,887		87,340		93,632		266,787		285,982
Noninterest Income
Trust and Asset Management	11,717		12,089		11,050		35,692		33,163
Mortgage Banking	4,132		5,820		11,745		16,363		24,376
Service Charges on Deposit Accounts	9,385		9,112		9,346		27,798		28,162
Fees, Exchange, and Other Service Charges	12,732		13,133		11,907		37,799		36,632
Investment Securities Gains (Losses), Net	—		—		13		—		(77			)
Insurance	2,177		2,393		2,326		6,895		7,003
Bank-Owned Life Insurance	1,365		1,335		2,028		3,997		5,248
Other	3,618		4,159		3,959		12,401		12,797
Total Noninterest Income	45,126		48,041		52,374		140,945		147,304
Noninterest Expense
Salaries and Benefits	46,552		45,341		47,231		140,568		138,292
Net Occupancy	9,847		9,661		10,524		29,143		31,098
Net Equipment	4,572		4,380		4,523		13,529		15,018
Data Processing	3,697		3,050		3,397		10,013		10,144
Professional Fees	2,119		2,391		2,494		6,736		7,012
FDIC Insurance	1,913		1,949		1,822		5,811		5,981
Other	14,277		14,409		14,887		42,745		43,287
Total Noninterest Expense	82,977		81,181		84,878		248,545		250,832
Income Before Provision for Income Taxes	53,036		54,200		61,128		159,187		182,454
Provision for Income Taxes	15,332		16,437		19,896		47,740		56,665
Net Income	$	37,704	$	37,763	$	41,232	$	111,447	$	125,789
Basic Earnings Per Share	$	0.85	$	0.85	$	0.92	$	2.51	$	2.78
Diluted Earnings Per Share	$	0.85	$	0.85	$	0.92	$	2.50	$	2.77
Dividends Declared Per Share	$	0.45	$	0.45	$	0.45	$	1.35	$	1.35
Basic Weighted Average Shares	44,267,356		44,493,069		44,913,348		44,433,967		45,280,541
Diluted Weighted Average Shares	44,479,472		44,608,497		45,050,638		44,588,777		45,421,624

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)										Table 4
		Three Months Ended								Nine Months Ended
		September 30,			June 30,			September 30,		September 30,
(dollars in thousands)		2013			2013			2012		2013			2012
Net Income		$	37,704		$	37,763		$	41,232	$	111,447		$	125,789
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities	(6,986		)	(46,572		)	9,770		(63,199		)	6,703
	Defined Benefit Plans	202			201			152		481			458
Total Other Comprehensive Income (Loss)		(6,784		)	(46,371		)	9,922		(62,718		)	7,161
Comprehensive Income (Loss)		$	30,920		$	(8,608	)	$	51,154	$	48,729		$	132,950

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition												Table 5
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands)	2013			2013			2012			2012
Assets
Interest-Bearing Deposits	$	3,048		$	4,635		$	3,393		$	4,673
Funds Sold	254,940			329,922			185,682			251,664
Investment Securities
Available-for-Sale	2,277,136			2,815,408			3,367,557			3,124,209
Held to Maturity (Fair Value of $4,621,491; $4,036,197;
$3,687,676; and $3,587,997)	4,633,399			4,027,829			3,595,065			3,475,259
Loans Held for Sale	18,795			25,880			21,374			25,971
Loans and Leases	6,006,642			5,859,152			5,854,521			5,782,304
Allowance for Loan and Lease Losses	(123,680		)	(124,575		)	(128,857		)	(130,971			)
Net Loans and Leases	5,882,962			5,734,577			5,725,664			5,651,333
Total Earning Assets	13,070,280			12,938,251			12,898,735			12,533,109
Cash and Noninterest-Bearing Deposits	131,228			136,386			163,786			153,599
Premises and Equipment	105,181			105,752			105,005			107,144
Accrued Interest Receivable	46,047			43,375			43,077			47,192
Foreclosed Real Estate	3,036			3,256			3,887			3,067
Mortgage Servicing Rights	28,015			27,631			25,240			23,980
Goodwill	31,517			31,517			31,517			31,517
Other Assets	433,567			447,250			457,125			482,817
Total Assets	$	13,848,871		$	13,733,418		$	13,728,372		$	13,382,425
Liabilities
Deposits
Noninterest-Bearing Demand	$	3,524,638		$	3,396,835		$	3,367,185		$	2,985,561
Interest-Bearing Demand	2,320,452			2,269,196			2,163,473			2,034,319
Savings	4,503,963			4,433,042			4,399,316			4,480,733
Time	1,259,081			1,350,125			1,599,508			1,719,934
Total Deposits	11,608,134			11,449,198			11,529,482			11,220,547
Funds Purchased	9,983			9,983			11,296			10,942
Securities Sold Under Agreements to Repurchase	847,239			866,237			758,947			818,080
Long-Term Debt	174,717			174,727			128,055			28,065
Retirement Benefits Payable	47,338			47,318			47,658			41,872
Accrued Interest Payable	6,040			4,399			4,776			5,997
Taxes Payable and Deferred Taxes	40,364			48,947			88,014			94,369
Other Liabilities	122,370			146,241			138,479			137,991
Total Liabilities	12,856,185			12,747,050			12,706,707			12,357,863
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: September 30, 2013 - 57,487,855 / 44,539,247;
June 30, 2013 - 57,488,745 / 44,644,596;
December 31, 2012 - 57,319,352 / 44,754,835;
��  and September 30, 2012 - 57,315,093 / 45,004,813)	572			572			571			571
Capital Surplus	520,510			518,804			515,619			513,758
Accumulated Other Comprehensive Income (Loss)	(33,510		)	(26,726		)	29,208			42,424
Retained Earnings	1,132,996			1,115,594			1,084,477			1,065,245
Treasury Stock, at Cost (Shares: September 30, 2013 - 12,948,608;
June 30, 2013 - 12,844,149; December 31, 2012 - 12,564,517; and
September 30, 2012 - 12,310,280)	(627,882		)	(621,876		)	(608,210		)	(597,436			)
Total Shareholders' Equity	992,686			986,368			1,021,665			1,024,562
Total Liabilities and Shareholders' Equity	$	13,848,871		$	13,733,418		$	13,728,372		$	13,382,425

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	—		—		—		—			111,447			—			111,447
Other Comprehensive Loss	—		—		—		(62,718		)	—			—			(62,718		)
Share-Based Compensation	—		—		4,226		—			—			—			4,226
Common Stock Issued under
Purchase and Equity
Compensation Plans
and Related Tax Benefits	444,951		1		665		—			(2,458		)	13,521			11,729
Common Stock Repurchased	(660,539	)	—		—		—			—			(33,193		)	(33,193		)
Cash Dividends Paid
($1.35 per share)	—		—		—		—			(60,470		)	—			(60,470		)
Balance as of September 30, 2013	44,539,247		$	572	$	520,510	$	(33,510	)	$	1,132,996		$	(627,882	)	$	992,686
Balance as of December 31, 2011	45,947,116		$	571	$	507,558	$	35,263		$	1,003,938		$	(544,663	)	$	1,002,667
Net Income	—		—		—		—			125,789			—			125,789
Other Comprehensive Income	—		—		—		7,161			—			—			7,161
Share-Based Compensation	—		—		5,687		—			—			—			5,687
Common Stock Issued under
Purchase and Equity
Compensation Plans and
Related Tax Benefits	471,104		—		513		—			(3,023		)	13,472			10,962
Common Stock Repurchased	(1,413,407	)	—		—		—			—			(66,245		)	(66,245		)
Cash Dividends Paid
($1.35 per share)	—		—		—		—			(61,459		)	—			(61,459		)
Balance as of September 30, 2012	45,004,813		$	571	$	513,758	$	42,424		$	1,065,245		$	(597,436	)	$	1,024,562

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
		September 30, 2013						June 30, 2013						September 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		$	4.3	$	—	0.30	%	$	4.5	$	—	0.06	%	$	4.0		$	—	0.33	%
Funds Sold		335.3		0.2		0.21		168.3		0.1		0.18		221.5			0.1		0.19
Investment Securities
	Available-for-Sale	2,495.9		13.7		2.18		3,212.2		17.4		2.17		3,247.8			18.3		2.26
	Held-to-Maturity	4,385.5		25.0		2.28		3,714.3		19.2		2.07		3,617.3			23.2		2.57
Loans Held for Sale		16.7		0.2		4.42		22.9		0.2		3.87		15.8			0.2		4.32
Loans and Leases 1
	Commercial and Industrial	877.3		7.7		3.49		855.5		7.8		3.65		797.2			7.7		3.86
	Commercial Mortgage	1,164.9		12.1		4.12		1,114.8		11.3		4.08		993.2			10.8		4.32
	Construction	120.1		1.4		4.71		107.5		1.2		4.61		100.1			1.3		4.97
	Commercial Lease Financing	253.0		1.5		2.32		265.2		1.6		2.36		278.5			1.7		2.42
	Residential Mortgage	2,255.9		25.3		4.49		2,252.1		25.5		4.53		2,391.8			28.1		4.70
	Home Equity	757.6		7.9		4.13		752.9		7.8		4.15		770.2			8.3		4.28
	Automobile	240.6		3.3		5.43		225.0		3.1		5.51		194.9			2.9		5.90
	Other 2	223.5		4.6		8.23		208.9		4.3		8.22		190.5			3.9		8.09
Total Loans and Leases		5,892.9		63.8		4.31		5,781.9		62.6		4.34		5,716.4			64.7		4.51
Other		78.1		0.3		1.54		78.6		0.3		1.45		80.1			0.3		1.41
Total Earning Assets 3		13,208.7		103.2		3.11		12,982.7		99.8		3.08		12,902.9			106.8		3.30
Cash and Noninterest-Bearing Deposits		140.3						136.8						134.9
Other Assets		420.7						452.8						453.0
Total Assets		$	13,769.7					$	13,572.3					$	13,490.8
Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,147.8	0.1		0.03		$	2,106.0	0.2		0.03		$	1,968.8		0.1		0.03
	Savings	4,485.3		1.0		0.09		4,451.1		1.0		0.09		4,456.2			1.0		0.09
	Time	1,401.5		1.4		0.38		1,381.4		1.4		0.42		1,823.2			1.8		0.38
Total Interest-Bearing Deposits		8,034.6		2.5		0.12		7,938.5		2.6		0.13		8,248.2			2.9		0.14
Short-Term Borrowings		11.7		—		0.14		29.4		—		0.12		18.5			—		0.15
Securities Sold Under Agreements
to Repurchase		847.2		6.6		3.03		800.1		6.7		3.34		853.0			7.2		3.30
Long-Term Debt		174.7		0.6		1.44		177.3		0.7		1.52		28.0			0.5		6.52
Total Interest-Bearing Liabilities		9,068.2		9.7		0.42		8,945.3		10.0		0.44		9,147.7			10.6		0.46
Net Interest Income				$	93.5					$	89.8						$	96.2
	Interest Rate Spread					2.69	%					2.64	%						2.84	%
	Net Interest Margin					2.83	%					2.77	%						2.98	%
Noninterest-Bearing Demand Deposits		3,444.6						3,306.1						3,053.5
Other Liabilities		261.2						286.5						265.8
Shareholders' Equity		995.7						1,034.4						1,023.8
Total Liabilities and Shareholders' Equity		$	13,769.7					$	13,572.3					$	13,490.8
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 $2,597,000, $2,490,000 and $2,529,000 for the three months ended September 30, 2013, June 30, 2013, and September 30, 2012, respectively.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis													Table 7b
		Nine Months Ended						Nine Months Ended
		September 30, 2013						September 30, 2012
		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits		$	4.2	$	—	0.22	%	$	3.4	$	—	0.24		%
Funds Sold		220.7		0.3		0.19		240.5		0.4		0.19
Investment Securities
	Available-for-Sale	3,007.0		49.2		2.18		3,369.5		57.4		2.27
	Held-to-Maturity	3,895.6		64.1		2.19		3,714.2		74.7		2.68
Loans Held for Sale		19.3		0.6		4.05		13.3		0.4		4.26
Loans and Leases 1
	Commercial and Industrial	852.1		23.1		3.62		796.5		23.5		3.94
	Commercial Mortgage	1,124.6		34.5		4.10		962.9		31.7		4.40
	Construction	114.4		4.1		4.79		101.1		3.9		5.13
	Commercial Lease Financing	263.6		4.7		2.36		285.7		5.1		2.37
	Residential Mortgage	2,273.0		76.8		4.51		2,342.8		83.8		4.77
	Home Equity	759.4		23.6		4.14		773.8		25.2		4.35
	Automobile	226.6		9.3		5.51		193.9		8.8		6.05
	Other 2	212.7		13.1		8.26		184.0		11.2		8.10
Total Loans and Leases		5,826.4		189.2		4.34		5,640.7		193.2		4.57
Other		78.6		0.9		1.48		80.0		0.8		1.41
Total Earning Assets 3		13,051.8		304.3		3.11		13,061.6		326.9		3.34
Cash and Noninterest-Bearing Deposits		139.7						134.6
Other Assets		442.4						444.1
Total Assets		$	13,633.9					$	13,640.3
Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,105.1	0.4		0.03		$	1,914.2	0.3		0.03
	Savings	4,448.5		3.0		0.09		4,446.6		3.5		0.10
	Time	1,431.6		4.3		0.41		1,447.1		5.8		0.53
Total Interest-Bearing Deposits		7,985.2		7.7		0.13		7,807.9		9.6		0.16
Short-Term Borrowings		32.9		—		0.14		16.4		—		0.14
Securities Sold Under Agreements to Repurchase		801.5		20.3		3.34		1,523.4		21.8		1.88
Long-Term Debt		169.7		2.0		1.53		29.8		1.5		6.51
Total Interest-Bearing Liabilities		8,989.3		30.0		0.44		9,377.5		32.9		0.46
Net Interest Income				$	274.3					$	294.0
	Interest Rate Spread					2.67	%					2.88		%
	Net Interest Margin					2.81	%					3.01		%
Noninterest-Bearing Demand Deposits		3,352.6						2,978.8
Other Liabilities		270.5						265.1
Shareholders' Equity		1,021.5						1,018.9
Total Liabilities and Shareholders' Equity		$	13,633.9					$	13,640.3
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 $7,498,000 and $7,080,000 for the nine months ended    September 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 September 30, 2013
	Compared to June 30, 2013
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	0.1		$	—		$	0.1
Investment Securities
Available-for-Sale	(3.8		)	0.1			(3.7		)
Held-to-Maturity	3.7			2.1			5.8
Loans and Leases
Commercial and Industrial	0.2			(0.3		)	(0.1		)
Commercial Mortgage	0.7			0.1			0.8
Construction	0.2			—			0.2
Commercial Lease Financing	(0.1		)	—			(0.1		)
Residential Mortgage	—			(0.2		)	(0.2		)
Home Equity	0.1			—			0.1
Automobile	0.2			—			0.2
Other 2	0.3			—			0.3
Total Loans and Leases	1.6			(0.4		)	1.2
Total Change in Interest Income	1.6			1.8			3.4
Change in Interest Expense:
Interest-Bearing Deposits
Demand	—			(0.1		)	(0.1		)
Time	0.1			(0.1		)	—
Total Interest-Bearing Deposits	0.1			(0.2		)	(0.1		)
Securities Sold Under Agreements to Repurchase	0.4			(0.5		)	(0.1		)
Long-Term Debt	—			(0.1		)	(0.1		)
Total Change in Interest Expense	0.5			(0.8		)	(0.3		)
Change in Net Interest Income	$	1.1		$	2.6		$	3.7
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 September 30, 2013
	Compared to September 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	(4.1		)	(0.5		)	(4.6			)
Held-to-Maturity	4.6			(2.8		)	1.8
Loans and Leases
Commercial and Industrial	0.8			(0.8		)	—
Commercial Mortgage	1.8			(0.5		)	1.3
Construction	0.2			(0.1		)	0.1
Commercial Lease Financing	(0.1		)	(0.1		)	(0.2			)
Residential Mortgage	(1.6		)	(1.2		)	(2.8			)
Home Equity	(0.1		)	(0.3		)	(0.4			)
Automobile	0.6			(0.2		)	0.4
Other 2	0.6			0.1			0.7
Total Loans and Leases	2.2			(3.1		)	(0.9			)
Total Change in Interest Income	2.8			(6.4		)	(3.6			)
Change in Interest Expense:
Interest-Bearing Deposits
Savings	0.1			(0.1		)	—
Time	(0.4		)	—			(0.4			)
Total Interest-Bearing Deposits	(0.3		)	(0.1		)	(0.4			)
Securities Sold Under Agreements to Repurchase	(0.1		)	(0.5		)	(0.6			)
Long-Term Debt	0.7			(0.6		)	0.1
Total Change in Interest Expense	0.3			(1.2		)	(0.9			)
Change in Net Interest Income	$	2.5		$	(5.2	)	$	(2.7		)
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
	Nine Months Ended September 30, 2013
	Compared to September 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	(6.0		)	(2.2		)	(8.2			)
Held-to-Maturity	3.5			(14.1		)	(10.6			)
Loans Held for Sale	0.2			—			0.2
Loans and Leases
Commercial and Industrial	1.6			(2.0		)	(0.4			)
Commercial Mortgage	5.1			(2.3		)	2.8
Construction	0.5			(0.3		)	0.2
Commercial Lease Financing	(0.4		)	—			(0.4			)
Residential Mortgage	(2.5		)	(4.5		)	(7.0			)
Home Equity	(0.4		)	(1.2		)	(1.6			)
Automobile	1.3			(0.8		)	0.5
Other 2	1.7			0.2			1.9
Total Loans and Leases	6.9			(10.9		)	(4.0			)
Other	—			0.1			0.1
Total Change in Interest Income	4.5			(27.1		)	(22.6			)
Change in Interest Expense:
Interest-Bearing Deposits
Demand	—			0.1			0.1
Savings	—			(0.5		)	(0.5			)
Time	(0.1		)	(1.4		)	(1.5			)
Total Interest-Bearing Deposits	(0.1		)	(1.8		)	(1.9			)
Securities Sold Under Agreements to Repurchase	(13.3		)	11.8			(1.5			)
Long-Term Debt	2.3			(1.8		)	0.5
Total Change in Interest Expense	(11.1		)	8.2			(2.9			)
Change in Net Interest Income	$	15.6		$	(35.3	)	$	(19.7		)
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						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
(dollars in thousands)	2013		2013		2012		2013		2012
Salaries	$	28,985	$	28,690	$	29,312	$	86,753	$	85,830
Incentive Compensation	4,242		3,861		4,492		11,887		12,678
Share-Based Compensation	1,333		1,305		1,817		3,774		5,260
Commission Expense	1,888		1,983		1,750		5,652		5,040
Retirement and Other Benefits	4,144		3,594		4,322		12,106		12,193
Payroll Taxes	2,335		2,576		2,267		9,151		8,522
Medical, Dental, and Life Insurance	1,872		2,468		2,255		7,153		6,931
Separation Expense	1,753		864		1,016		4,092		1,838
Total Salaries and Benefits	$	46,552	$	45,341	$	47,231	$	140,568	$	138,292

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances												Table 10
		September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)		2013		2013		2013		2012		2012
Commercial
	Commercial and Industrial	$	895,040	$	875,702	$	834,801	$	829,512	$	808,621
	Commercial Mortgage	1,203,670		1,160,977		1,104,718		1,097,425		1,039,556
	Construction	124,230		107,016		117,797		113,987		101,818
	Lease Financing	255,550		257,067		269,107		274,969		277,328
Total Commercial		2,478,490		2,400,762		2,326,423		2,315,893		2,227,323
Consumer
	Residential Mortgage	2,282,305		2,252,117		2,275,209		2,349,916		2,392,871
	Home Equity	765,841		751,790		757,877		770,376		770,284
	Automobile	246,704		233,475		220,362		209,832		200,788
	Other 1	233,302		221,008		203,098		208,504		191,038
Total Consumer		3,528,152		3,458,390		3,456,546		3,538,628		3,554,981
Total Loans and Leases		$	6,006,642	$	5,859,152	$	5,782,969	$	5,854,521	$	5,782,304

Higher Risk Loans and Leases Outstanding
	September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)	2013		2013		2013		2012		2012
Residential Land Loans 2	$	13,635	$	13,708	$	13,996	$	14,984	$	16,513
Home Equity Loans 3	12,588		13,578		20,786		19,914		19,774
Air Transportation 4	26,492		26,436		27,115		27,782		27,765
Total Higher Risk Loans	$	52,715	$	53,722	$	61,897	$	62,680	$	64,052
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
	September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)	2013		2013		2013		2012		2012
Consumer	$	5,707,125	$	5,626,515	$	5,607,862	$	5,537,624	$	5,369,724
Commercial	4,680,370		4,537,120		4,505,835		4,576,410		4,394,745
Public and Other	1,220,639		1,285,563		1,138,163		1,415,448		1,456,078
Total Deposits	$	11,608,134	$	11,449,198	$	11,251,860	$	11,529,482	$	11,220,547

Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More																	Table 11
			September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)			2013			2013			2013			2012			2012
Non-Performing Assets
Non-Accrual Loans and Leases
	Commercial
		Commercial and Industrial	$	5,295		$	4,909		$	5,033		$	5,534		$	5,635
		Commercial Mortgage	2,355			2,772			2,910			3,030			2,671
		Construction	—			—			—			833			953
		Lease Financing	—			16			—			—			—
	Total Commercial		7,650			7,697			7,943			9,397			9,259
	Consumer
		Residential Mortgage	20,637			22,876			24,700			21,725			25,456
		Home Equity	2,509			2,602			2,413			2,074			2,502
	Total Consumer		23,146			25,478			27,113			23,799			27,958
Total Non-Accrual Loans and Leases			30,796			33,175			35,056			33,196			37,217
Foreclosed Real Estate			3,036			3,256			3,318			3,887			3,067
Total Non-Performing Assets			$	33,832		$	36,431		$	38,374		$	37,083		$	40,284
Accruing Loans and Leases Past Due 90 Days or More
Commercial
	Commercial and Industrial		$	8		—			$	230		$	27		$	—
Total Commercial			8			—			230			27			—
Consumer
	Residential Mortgage		7,460			6,876			5,967			6,908			3,988
	Home Equity		2,896			2,768			4,538			2,701			2,755
	Automobile		193			95			241			186			154
	Other 1		841			855			676			587			578
Total Consumer			11,390			10,594			11,422			10,382			7,475
Total Accruing Loans and Leases Past Due 90 Days or More			$	11,398		$	10,594		$	11,652		$	10,409		$	7,475
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More			$	39,845		$	39,154		$	30,065		$	31,844		$	31,426
Total Loans and Leases			$	6,006,642		$	5,859,152		$	5,782,969		$	5,854,521		$	5,782,304
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.51		%	0.57		%	0.61		%	0.57		%	0.64			%
Ratio of Non-Performing Assets to Total Loans and Leases,
	and Foreclosed Real Estate		0.56		%	0.62		%	0.66		%	0.63		%	0.70			%
Ratio of Commercial Non-Performing Assets to Total Commercial
	Loans and Leases, and Commercial Foreclosed Real Estate		0.35		%	0.37		%	0.39		%	0.45		%	0.46			%
Ratio of Consumer Non-Performing Assets to Total Consumer
	Loans and Leases and Consumer Foreclosed Real Estate		0.71		%	0.80		%	0.85		%	0.75		%	0.84			%
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		0.75		%	0.80		%	0.86		%	0.81		%	0.83			%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter			$	36,431		$	38,374		$	37,083		$	40,284		$	41,494
Additions			3,395			2,647			7,304			3,837			2,878
Reductions
	Payments		(2,954		)	(1,306		)	(2,630		)	(3,994		)	(2,408			)
	Return to Accrual Status		(1,166		)	(1,978		)	(1,132		)	(728		)	(1,083			)
	Sales of Foreclosed Real Estate		(1,498		)	(1,257		)	(1,910		)	(1,354		)	(424			)
	Charge-offs/Write-downs		(376		)	(49		)	(341		)	(962		)	(173			)
Total Reductions			(5,994		)	(4,590		)	(6,013		)	(7,038		)	(4,088			)
Balance at End of Quarter			$	33,832		$	36,431		$	38,374		$	37,083		$	40,284
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									Nine Months Ended
			September 30,			June 30,			September 30,			September 30,
(dollars in thousands)			2013			2013			2012			2013			2012
Balance at Beginning of Period			$	130,494		$	132,297		$	137,862		$	134,276		$	144,025
Loans and Leases Charged-Off
	Commercial
		Commercial and Industrial	(607		)	(266		)	(519		)	(1,255		)	(3,028			)
		Construction	—			—			—			—			(330			)
		Lease Financing	(16		)	—			—			(16		)	—
	Consumer
		Residential Mortgage	(405		)	(188		)	(628		)	(1,828		)	(3,577			)
		Home Equity	(1,106		)	(2,016		)	(1,061		)	(4,499		)	(5,159			)
		Automobile	(457		)	(429		)	(472		)	(1,461		)	(1,436			)
		Other 1	(2,083		)	(1,805		)	(2,354		)	(5,618		)	(5,199			)
Total Loans and Leases Charged-Off			(4,674		)	(4,704		)	(5,034		)	(14,677		)	(18,729			)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
		Commercial and Industrial	498			437			578			1,373			3,035
		Commercial Mortgage	519			14			14			543			48
		Construction	11			8			3			357			3
		Lease Financing	11			11			83			33			166
	Consumer
		Residential Mortgage	1,290			634			739			2,712			1,781
		Home Equity	614			335			258			1,697			993
		Automobile	348			456			433			1,265			1,453
		Other 1	488			506			1,454			1,520			2,636
Total Recoveries on Loans and Leases Previously Charged-Off			3,779			2,401			3,562			9,500			10,115
Net Loans and Leases Charged-Off			(895		)	(2,303		)	(1,472		)	(5,177		)	(8,614			)
Provision for Credit Losses			—			—			—			—			979
Provision for Unfunded Commitments			148			500			—			648			—
Balance at End of Period 2			$	129,747		$	130,494		$	136,390		$	129,747		$	136,390
Components
Allowance for Loan and Lease Losses			$	123,680		$	124,575		$	130,971		$	123,680		$	130,971
Reserve for Unfunded Commitments			6,067			5,919			5,419			6,067			5,419
Total Reserve for Credit Losses			$	129,747		$	130,494		$	136,390		$	129,747		$	136,390
Average Loans and Leases Outstanding			$	5,892,888		$	5,781,898		$	5,716,421		$	5,826,424		$	5,640,733
Ratio of Net Loans and Leases Charged-Off to
	Average Loans and Leases Outstanding (annualized)		0.06		%	0.16		%	0.10		%	0.12		%	0.20			%
Ratio of Allowance for Loan and Lease Losses
	to Loans and Leases Outstanding		2.06		%	2.13		%	2.27		%	2.06		%	2.27			%
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 September 30, 2013
Net Interest Income	$	41,404		$	24,671		$	2,574		$	22,238		$	90,887
Provision for Credit Losses	1,629			(691		)	(19		)	(919		)	—
Net Interest Income After Provision for Credit Losses	39,775			25,362			2,593			23,157			90,887
Noninterest Income	21,785			6,411			14,348			2,582			45,126
Noninterest Expense	(50,150		)	(15,746		)	(13,590		)	(3,491		)	(82,977			)
Income Before Income Taxes	11,410			16,027			3,351			22,248			53,036
Provision for Income Taxes	(4,222		)	(5,501		)	(1,240		)	(4,369		)	(15,332			)
Net Income	7,188			10,526			2,111			17,879			37,704
Total Assets as of September 30, 2013	$	3,611,412		$	2,356,723		$	199,556		$	7,681,180		$	13,848,871
Three Months Ended September 30, 2012 1
Net Interest Income	$	44,139		$	25,803		$	3,010		$	20,680		$	93,632
Provision for Credit Losses	1,845			(348		)	(24		)	(1,473		)	—
Net Interest Income After Provision for Credit Losses	42,294			26,151			3,034			22,153			93,632
Noninterest Income	28,816			5,773			14,366			3,419			52,374
Noninterest Expense	(52,609		)	(15,397		)	(13,928		)	(2,944		)	(84,878			)
Income Before Income Taxes	18,501			16,527			3,472			22,628			61,128
Provision for Income Taxes	(6,846		)	(5,669		)	(1,285		)	(6,096		)	(19,896			)
Net Income	11,655			10,858			2,187			16,532			41,232
Total Assets as of September 30, 2012 1	$	3,675,639		$	2,091,517		$	192,250		$	7,423,019		$	13,382,425
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
Nine Months Ended September 30, 2013
Net Interest Income	$	122,442		$	73,528		$	7,938		$	62,879		$	266,787
Provision for Credit Losses	6,775			(1,501		)	(52		)	(5,222		)	—
Net Interest Income After Provision for Credit Losses	115,667			75,029			7,990			68,101			266,787
Noninterest Income	67,686			20,382			44,446			8,431			140,945
Noninterest Expense	(150,838		)	(47,957		)	(40,954		)	(8,796		)	(248,545			)
Income Before Income Taxes	32,515			47,454			11,482			67,736			159,187
Provision for Income Taxes	(12,030		)	(16,247		)	(4,248		)	(15,215		)	(47,740			)
Net Income	20,485			31,207			7,234			52,521			111,447
Total Assets as of September 30, 2013	$	3,611,412		$	2,356,723		$	199,556		$	7,681,180		$	13,848,871
Nine Months Ended September 30, 2012 1
Net Interest Income	$	133,530		$	77,974		$	9,493		$	65,964		$	286,961
Provision for Credit Losses	9,148			(798		)	265			(7,636		)	979
Net Interest Income After Provision for Credit Losses	124,382			78,772			9,228			73,600			285,982
Noninterest Income	76,232			20,402			42,107			8,563			147,304
Noninterest Expense	(154,883		)	(46,999		)	(42,105		)	(6,845		)	(250,832			)
Income Before Income Taxes	45,731			52,175			9,230			75,318			182,454
Provision for Income Taxes	(16,920		)	(13,936		)	(3,415		)	(22,394		)	(56,665			)
Net Income	28,811			38,239			5,815			52,924			125,789
Total Assets as of September 30, 2012 1	$	3,675,639		$	2,091,517		$	192,250		$	7,423,019		$	13,382,425
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
	September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands, except per share amounts)	2013			2013			2013			2012			2012
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	63,918		$	62,729		$	62,820		$	64,627		$	64,668
Income on Investment Securities
Available-for-Sale	12,038			15,073			15,851			15,349			15,922
Held-to-Maturity	24,137			19,189			19,854			20,253			23,232
Deposits	3			1			3			3			3
Funds Sold	177			74			59			180			105
Other	301			285			284			283			283
Total Interest Income	100,574			97,351			98,871			100,695			104,213
Interest Expense
Deposits	2,500			2,579			2,646			2,753			2,931
Securities Sold Under Agreements to Repurchase	6,551			6,751			7,005			7,158			7,185
Funds Purchased	4			10			22			4			7
Long-Term Debt	632			671			638			470			458
Total Interest Expense	9,687			10,011			10,311			10,385			10,581
Net Interest Income	90,887			87,340			88,560			90,310			93,632
Provision for Credit Losses	—			—			—			—			—
Net Interest Income After Provision for Credit Losses	90,887			87,340			88,560			90,310			93,632
Noninterest Income
Trust and Asset Management	11,717			12,089			11,886			12,066			11,050
Mortgage Banking	4,132			5,820			6,411			11,268			11,745
Service Charges on Deposit Accounts	9,385			9,112			9,301			9,459			9,346
Fees, Exchange, and Other Service Charges	12,732			13,133			11,934			12,333			11,907
Investment Securities Gains, Net	—			—			—			—			13
Insurance	2,177			2,393			2,325			2,550			2,326
Bank-Owned Life Insurance	1,365			1,335			1,297			1,557			2,028
Other	3,618			4,159			4,624			3,749			3,959
Total Noninterest Income	45,126			48,041			47,778			52,982			52,374
Noninterest Expense
Salaries and Benefits	46,552			45,341			48,675			46,116			47,231
Net Occupancy	9,847			9,661			9,635			11,867			10,524
Net Equipment	4,572			4,380			4,577			4,705			4,523
Data Processing	3,697			3,050			3,266			3,058			3,397
Professional Fees	2,119			2,391			2,226			2,611			2,494
FDIC Insurance	1,913			1,949			1,949			1,892			1,822
Other	14,277			14,409			14,059			13,207			14,887
Total Noninterest Expense	82,977			81,181			84,387			83,456			84,878
Income Before Provision for Income Taxes	53,036			54,200			51,951			59,836			61,128
Provision for Income Taxes	15,332			16,437			15,971			19,549			19,896
Net Income	$	37,704		$	37,763		$	35,980		$	40,287		$	41,232
Basic Earnings Per Share	$	0.85		$	0.85		$	0.81		$	0.90		$	0.92
Diluted Earnings Per Share	$	0.85		$	0.85		$	0.81		$	0.90		$	0.92
Balance Sheet Totals
Loans and Leases	$	6,006,642		$	5,859,152		$	5,782,969		$	5,854,521		$	5,782,304
Total Assets	13,848,871			13,733,418			13,525,667			13,728,372			13,382,425
Total Deposits	11,608,134			11,449,198			11,251,860			11,529,482			11,220,547
Total Shareholders' Equity	992,686			986,368			1,026,104			1,021,665			1,024,562
Performance Ratios
Return on Average Assets	1.09		%	1.12		%	1.08		%	1.19		%	1.22		%
Return on Average Shareholders' Equity	15.02			14.64			14.10			15.47			16.02
Efficiency Ratio 1	61.01			59.96			61.90			58.24			58.13
Net Interest Margin 2	2.83			2.77			2.82			2.87			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
	Eight Months Ended							Year Ended
($ in millions; jobs in thousands)	August 31, 2013							December 31, 2012							December 31, 2011
Hawaii Economic Trends
State General Fund Revenues 1	$	3,653.7				4.0	%	$	5,259.1				12.8	%	$	4,662.5				8.1	%
General Excise and Use Tax Revenue 1	$	1,937.4				1.2	%	$	2,844.7				9.9	%	$	2,588.5				8.8	%
Jobs 2	614.8							619.3							614.2
	August 31,					June 30,		March 31,					December 31,
(spot rates)	2013					2013		2013					2012		2011					2010
Unemployment 3
Statewide, seasonally adjusted	4.3			%		4.6	%	5.1				%	5.2	%	6.2			%	%	6.3	%
Oahu	3.8					4.7		4.6					4.3		5.4					4.8
Island of Hawaii	5.8					7.5		7.6					6.9		8.9					8.6
Maui	4.5					5.4		5.7					5.2		7.1					7.4
Kauai	4.9					5.9		6.4					6.0		7.8					7.8
	September 30,					June 30,		March 31,					December 31,
(percentage change, except months of inventory)	2013					2013		2013					2012		2011					2010
Housing Trends (Single Family Oahu) 4
Median Home Price	3.3			%		0.8	%	(2.7			)	%	7.8		(3.0			)	%	3.1	%
Home Sales Volume (units)	7.0			%		11.6	%	6.9				%	6.5		(2.7			)	%	13.4	%
Months of Inventory	2.8					2.7		2.4					2.5		4.8					6.0
					Monthly Visitor Arrivals,							Percentage Change
(in thousands)					Seasonally Adjusted							from Previous Month
Tourism 5
July 31, 2013										670.5							(3.2					)%
June 30, 2013										692.9							2.1
May 31, 2013										678.4							2.5
April 30, 2013										662.1							(5.4					)
March 31, 2013										699.8							4.1
February 28, 2013										672.4							(0.2					)
January 31, 2013										673.5							(0.4					)
December 31, 2012										675.9							(2.6					)
November 30, 2012										693.7							5.5
October 31, 2012										657.3							0.6
September 30, 2012										653.2							(0.4					)
August 31, 2012										656.0							3.1
July 31, 2012										636.3							(2.7					)
June 30, 2012										653.9							0.7
May 31, 2012										649.3							1.5
April 30, 2012										639.4							(2.0					)
March 31, 2012										652.4							3.4
February 29, 2012										631.2							(1.1					)
January 31, 2012										638.1							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
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.