Bank of Hawaii (BOH) 8-K Bank of Hawaii Corporation Third Quarter 2015 Financial Results

Bank of Hawaii Corporation Third Quarter 2015 Financial Results

• Diluted Earnings Per Share $0.79

• Net Income $34.3 Million

• Board of Directors Declares Dividend of $0.45 Per Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (October 26, 2015) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.79 for the third quarter of 2015, down from $0.95 in the second quarter of 2015 and $0.95 in the third quarter of 2014. Net income for the third quarter of 2015 was $34.3 million, down from net income of $41.2 million in the previous quarter and $41.8 million in the same quarter last year. The decrease was primarily due to the previously announced impairment charges totaling $6.5 million, net of tax, related to the decision to dispose of all of its remaining aircraft leases. Table 3b summarizes the components of the impairment charges.

"Bank of Hawaii’s operating results were strong in the third quarter of 2015, excluding the one-time impact of the aircraft impairment charges," said Peter S. Ho, Chairman, President and CEO.  “Loan balances grew 3.5 percent from the previous quarter and average deposits grew 1.1 percent.  Asset quality continued to be strong during the quarter and our core expenses were well controlled.”

The return on average assets for the third quarter of 2015 was 0.89 percent, down from 1.10 percent in the previous quarter and 1.15 percent in the same quarter last year. The return on average equity for the third quarter of 2015 was 12.45 percent, down from 15.33 percent for the second quarter of 2015 and 15.57 percent in the third quarter of 2014. The efficiency ratio for the third quarter of 2015 was 65.12 percent compared with 58.16 percent in the previous quarter and 57.74 percent in the same quarter last year. Adjusted for the lease impairment charges, the return on average assets for the third quarter of 2015 was 1.06 percent, the return on average equity was 14.80 percent, and the efficiency ratio was 58.0 percent.

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Bank of Hawaii Corporation Third Quarter 2015 Financial Results     Page 2

For the nine-month period ended September 30, 2015, net income was $117.9 million, a decrease from net income of $121.9 million for the same period last year. Diluted earnings per share were $2.71 for the nine-month period in 2015 compared with diluted earnings per share of $2.75 for the same period in 2014. The 2015 year-to-date return on average assets was 1.05 percent compared with 1.15 percent for the same period in 2014. The 2015 year-to-date return on average equity was 14.62 percent compared with 15.53 percent for the nine months ended September 30, 2014. The efficiency ratio for the nine-month period ended September 30, 2015 was 60.47 percent compared with 58.88 percent for the same period last year. Adjusted for the lease impairment charges, the return on average assets for the nine-month period ended September 30, 2015 was 1.10 percent, the return on average equity was 15.42 percent, and the efficiency ratio was 58.15 percent.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the third quarter of 2015 was $100.9 million, up slightly from net interest income of $100.8 million in the second quarter of 2015 and up from net interest income of $98.3 million in the third quarter of 2014. Net interest income for the nine-month period in 2015 was $301.4 million compared with net interest income of $291.6 million for the same period in 2014. 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 third quarter of 2015, a 4 basis point decrease from the net interest margin of 2.81 percent in the second quarter of 2015, and an 8 basis point decrease from the net interest margin of 2.85 percent in the third quarter of 2014. The net interest margin for the first nine months of 2015 was 2.79 percent compared with 2.86 percent for the same nine-month period last year.

The Company did not record a provision for credit losses during the nine-month period ended September 30, 2015. The first nine months of 2014 included a negative provision for credit losses of $4.9 million. The negative provision reflected continued strength of the credit risk profile, several large commercial loan recoveries, as well as a reduction of $2.7 million in the specific reserve related to one commercial client during the third quarter of 2014.

Noninterest income was $43.2 million in the third quarter of 2015, down from $45.9 million in the second quarter of 2015 and down from $45.0 million in the third quarter of 2014. Noninterest income in the third quarter of 2015 included a $1.0 million estimated loss on the pending sale of an aircraft lease. See Table 3b. Noninterest income in the third quarter of 2014 included a net gain of $1.9 million resulting from the sale of 23,000 Visa Class B shares. There were no sales of Visa Class B shares in the second or third quarters of 2015.  Noninterest income for the nine-months ended September 30, 2015 was $141.5 million compared with noninterest income of $134.2 million for the same period in 2014. The increase was primarily due to the timing of Visa Class B shares sales and an increase in mortgage banking income.

Noninterest expense was $91.9 million in the third quarter of 2015, up from $83.6 million in the previous quarter and up from $81.0 million in the same quarter last year. The increase was primarily due to a $9.5 million impairment of the residual values on aircraft in which the leases have expired. See Table 3b. Noninterest expense for the nine-months ended September 30, 2015 was $262.4 million, compared with noninterest expense of $245.7 million for the same period in 2014. The increase was primarily due to the impairment charges, higher separation expense, an increase in compensation related to higher business activity, and an increase inamortization expense related to our solar energy partnership investments. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

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Bank of Hawaii Corporation Third Quarter 2015 Financial Results              Page 3

The effective tax rate for the third quarter of 2015 was 30.37 percent compared with 31.56 percent in the previous quarter and 32.59 percent during the same quarter last year. Taxes for the third quarter of 2015 included a benefit of $4.0 million related to the aircraft impairment charges. See Table 3b. The effective tax rate for the nine-month period ended September 30, 2015 was 31.28 percent compared to 30.93 percent for the same period last year.

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 third quarter of 2015. Total non-performing assets were $29.5 million at September 30, 2015, flat with non-performing assets of $29.5 million at June 30, 2015 and down from non-performing assets of $33.3 million at September 30, 2014. As a percentage of total loans and leases and foreclosed real estate, non-performing assets were 0.38 percent at September 30, 2015, down from 0.40 percent at June 30, 2015 and 0.50 percent at September 30, 2014.

Accruing loans and leases past due 90 days or more were $8.1 million at September 30, 2015, down from $9.7 million at June 30, 2015 and $9.1 million at September 30, 2014. Restructured loans and leases not included in non-accrual loans or accruing loans past due 90 days or more were $49.5 million at September 30, 2015 compared with $48.3 million at June 30, 2015 and $45.2 million at September 30, 2014. 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 2015 were $2.0 million or 0.10 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $4.4 million during the quarter were partially offset by recoveries of $2.4 million. Net charge-offs during the second quarter of 2015 were $1.5 million or 0.08 percent annualized of total average loans and leases outstanding and were comprised of $3.5 million in charge-offs partially offset by recoveries of $2.0 million. Net charge-offs during the third quarter of 2014 were $0.8 million or 0.05 percent annualized of total average loans and leases outstanding and were comprised of $3.7 million in charge-offs partially offset by recoveries of $2.9 million. Net charge-offs in the nine-month period ended September 30, 2015 were $4.7 million, or 0.09 percent annualized of total average loans and leases outstanding compared with net charge-offs of $0.2 million, or 0.00 percent annualized of total average loans and leases outstanding for the same period in 2014.

The allowance for loan and lease losses was reduced to $104.0 million at September 30, 2015. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.35 percent at September 30, 2015, a decrease of 8 basis points from the previous quarter and commensurate with continued improvements in credit quality and the Hawaii economy. The reserve for unfunded commitments at September 30, 2015 was $6.1 million. 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 Third Quarter 2015 Financial Results      Page 4

Other Financial Highlights

Total assets were $15.16 billion at September 30, 2015, down slightly from total assets of $15.25 billion at June 30, 2015 and up from $14.51 billion at September 30, 2014. Average total assets were $15.22 billion during the third quarter of 2015, up from $15.04 billion during the previous quarter and $14.37 billion during the same quarter last year.

The investment securities portfolio was $6.40 billion at September 30, 2015, down from $6.47 billion at June 30, 2015 and $6.78 billion at September 30, 2014. The portfolio remains largely comprised of securities issued by U. S. government agencies and included $4.12 billion in securities held to maturity and $2.28 billion in securities available for sale at September 30, 2015. 

Total loans and leases increased to $7.69 billion at September 30, 2015, up from $7.43 billion at June 30, 2015 and $6.61 billion at September 30, 2014. Average total loans and leases were $7.55 billion during the third quarter of 2015, up from $7.30 billion during the second quarter of 2015 and $6.49 billion during the same quarter last year. The commercial loan portfolio increased to $3.12 billion at the end of the quarter, up from commercial loans of $3.04 billion at the end of the previous quarter, and up from $2.73 billion at the end of the same quarter last year. Total consumer loans increased to $4.57 billion at the end of the third quarter of 2015, up from $4.39 billion at the end of the second quarter of 2015, and up from $3.88 billion at the end of the third quarter of 2014. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $12.94 billion at September 30, 2015, down from $13.09 billion at June 30, 2015, and up from $12.36 billion at September 30, 2014. Average total deposits were $13.01 billion during the third quarter of 2015, up from $12.86 billion during the previous quarter and $12.20 billion during the same quarter last year.

During the third quarter of 2015, the Company repurchased 226.0 thousand shares of common stock at a total cost of $14.5 million under its share repurchase program. The average cost was $64.25 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through September 30, 2015, the Company has repurchased 52.6 million shares and returned $2.0 billion to shareholders at an average cost of $37.24 per share. Remaining buyback authority under the share repurchase program was $36.9 million at September 30, 2015. From October 1 through October 23, 2015, the Company repurchased an additional 63.0 thousand shares of common stock at an average cost of $64.47 per share.

Total shareholders’ equity was $1.10 billion at September 30, 2015, compared with $1.08 billion at June 30, 2015, and $1.06 billion at September 30, 2014. The Tier 1 Capital Ratio was 14.11 percent at the end of the third quarter of 2015 compared with 14.47 percent at the end of the second quarter of 2015 and 15.32 percent at the end of the same quarter last year. The Tier 1 leverage ratio at September 30, 2015 was 7.18 percent compared with 7.21 percent at June 30, 2015 and 7.19 percent at September 30, 2014.

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 14, 2015 to shareholders of record at the close of business on November 30, 2015.

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Bank of Hawaii Corporation Third Quarter 2015 Financial Results      Page 5

Hawaii Economy

General economic conditions in Hawaii continued to remain positive during the third quarter of 2015 due to an active construction industry, stable tourism, low unemployment, and a strong real estate market.  For the first eight months of 2015, total visitor spending increased 3.1 percent and total visitor arrivals increased 4.1 percent compared to the same period in 2014.  The statewide seasonally-adjusted unemployment rate was 3.4 percent in September 2015 compared to 5.1 percent nationally.  For the first nine months of 2015, the volume of single-family home sales on Oahu increased 4.9 percent and the volume of condominium sales on Oahu increased 5.1 percent compared with the same period in 2014.  The median price of single-family homes on Oahu increased 4.0 percent and the median price of condominiums on Oahu increased 1.4 percent for the first nine months of 2015 compared to the same nine-month period in 2014.  As of September 30, 2015, months of inventory of single-family homes and condominiums on Oahu remained low at 3.2 months and 3.5 months, respectively.  More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its third quarter 2015 financial results today at 2:00 p.m. Eastern Time (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. The toll-free number is 1 (877) 783-7534 in the United States and 1 (530) 379-4714 for international callers. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, October 26, 2015. The replay number is 1 (855) 859-2056 in the United States and 1 (404) 537-3406 from international locations. In addition to the toll-free numbers listed above, participants can also call 1 (800) 585-8367 to access the replay. Enter the pass code 56039793 when prompted. A replay will also be available on the Company's website, www.boh.com.

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, 2014, 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 1
	Three Months Ended										Nine Months Ended
	September 30,			June 30,			September 30,				September 30,
(dollars in thousands, except per share amounts)	2015			2015			2014				2015			2014
For the Period:
Operating Results
Net Interest Income	$	97,891		$	97,782		$	95,379			$	292,443		$	283,024
Provision for Credit Losses	—			—			(2,665		)		—			(4,864		)
Total Noninterest Income	43,221			45,925			44,950				141,453			134,199
Total Noninterest Expense	91,888			83,574			81,030				262,377			245,659
Net Income	34,276			41,154			41,769				117,872			121,851
Basic Earnings Per Share	0.79			0.95			0.95				2.72			2.77
Diluted Earnings Per Share	0.79			0.95			0.95				2.71			2.75
Dividends Declared Per Share	0.45			0.45			0.45				1.35			1.35
Performance Ratios
Return on Average Assets	0.89		%	1.10		%	1.15			%	1.05		%	1.15			%
Return on Average Shareholders' Equity	12.45			15.33			15.57				14.62			15.53
Efficiency Ratio 1	65.12			58.16			57.74				60.47			58.88
Net Interest Margin 2	2.77			2.81			2.85				2.79			2.86
Dividend Payout Ratio 3	56.96			47.37			47.37				49.63			48.74
Average Shareholders' Equity to Average Assets	7.18			7.16			7.41				7.15			7.38
Average Balances
Average Loans and Leases	$	7,545,985		$	7,300,506		$	6,488,780			$	7,301,656		$	6,290,548
Average Assets	15,220,660			15,038,500			14,372,375				15,069,405			14,221,143
Average Deposits	13,008,890			12,863,274			12,200,654				12,887,019			12,016,485
Average Shareholders' Equity	1,092,592			1,076,467			1,064,589				1,077,828			1,048,924
Per Share of Common Stock
Book Value	$	25.34		$	24.88		$	24.04			$	25.34		$	24.04
Tangible Book Value	24.61			24.15			23.32				24.61			23.32
Market Value
Closing	63.49			66.68			56.81				63.49			56.81
High	69.00			68.10			60.75				69.00			61.73
Low	58.53			58.70			55.55				53.90			53.45
				September 30,			June 30,				December 31,			September 30,
				2015			2015				2014			2014
As of Period End:
Balance Sheet Totals
Loans and Leases				$	7,689,772		$	7,428,438			$	6,897,589		$	6,606,350
Total Assets				15,164,123			15,248,043				14,787,208			14,510,166
Total Deposits				12,936,962			13,090,695				12,633,089			12,361,441
Other Debt				270,801			170,816				173,912			173,926
Total Shareholders' Equity				1,098,354			1,082,939				1,055,086			1,057,413
Asset Quality
Non-Performing Assets				$	29,545		$	29,450			$	30,082		$	33,307
Allowance for Loan and Lease Losses				104,038			106,006				108,688			110,362
Allowance to Loans and Leases Outstanding				1.35		%	1.43			%	1.58		%	1.67			%
Capital Ratios
Common Equity Tier 1 Capital Ratio 4				14.11		%	14.47			%	n/a			n/a
Tier 1 Capital Ratio 4				14.11			14.47				14.69		%	15.32			%
Total Capital Ratio 4				15.37			15.72				15.94			16.57
Tier 1 Leverage Ratio 4				7.18			7.21				7.13			7.19
Total Shareholders' Equity to Total Assets				7.24			7.10				7.14			7.29
Tangible Common Equity to Tangible Assets 5				7.05			6.91				6.94			7.09
Tangible Common Equity to Risk-Weighted Assets 4, 5				13.78			14.03				14.46			15.23
Non-Financial Data
Full-Time Equivalent Employees				2,154			2,166				2,161			2,170
Branches				72			71				74			74
ATMs				455			455				459			459
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  Capital ratios as of September 30, 2015 and June 30, 2015 calculated under Basel III rules, which became effective January 1, 2015.
5  Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 “Reconciliation of Non-GAAP Financial Measures."

Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures											Table 2
		September 30,			June 30,			December 31,			September 30,
(dollars in thousands)		2015			2015			2014			2014
Total Shareholders' Equity		$	1,098,354		$	1,082,939		$	1,055,086		$	1,057,413
Less:	Goodwill	31,517			31,517			31,517			31,517
Tangible Common Equity		$	1,066,837		$	1,051,422		$	1,023,569		$	1,025,896
Total Assets		$	15,164,123		$	15,248,043		$	14,787,208		$	14,510,166
Less:	Goodwill	31,517			31,517			31,517			31,517
Tangible Assets		$	15,132,606		$	15,216,526		$	14,755,691		$	14,478,649
Risk-Weighted Assets, determined in accordance
	with prescribed regulatory requirements 1	$	7,740,028		$	7,495,744		$	7,077,035		$	6,737,853
Total Shareholders' Equity to Total Assets		7.24		%	7.10		%	7.14		%	7.29		%
Tangible Common Equity to Tangible Assets (Non-GAAP)		7.05		%	6.91		%	6.94		%	7.09		%
Tier 1 Capital Ratio 1		14.11		%	14.47		%	14.69		%	15.32		%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1		13.78		%	14.03		%	14.46		%	15.23		%
1  Risk-weighted assets and capital ratios were calculated under Basel III rules, which became effective January 1, 2015.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income										Table 3a
	Three Months Ended							Nine Months Ended
	September 30,		June 30,		September 30,			September 30,
(dollars in thousands, except per share amounts)	2015		2015		2014			2015		2014
Interest Income
Interest and Fees on Loans and Leases	$	75,874	$	73,565	$	68,089		$	220,400	$	197,433
Income on Investment Securities
Available-for-Sale	10,192		10,273		10,286			30,663		31,743
Held-to-Maturity	20,689		22,832		26,067			67,928		80,894
Deposits	2		2		3			7		7
Funds Sold	291		268		176			818		481
Other	312		310		302			924		906
Total Interest Income	107,360		107,250		104,923			320,740		311,464
Interest Expense
Deposits	2,410		2,405		2,391			7,183		7,142
Securities Sold Under Agreements to Repurchase	6,307		6,440		6,523			19,118		19,385
Funds Purchased	3		3		3			9		10
Other Debt	749		620		627			1,987		1,903
Total Interest Expense	9,469		9,468		9,544			28,297		28,440
Net Interest Income	97,891		97,782		95,379			292,443		283,024
Provision for Credit Losses	—		—		(2,665		)	—		(4,864		)
Net Interest Income After Provision for Credit Losses	97,891		97,782		98,044			292,443		287,888
Noninterest Income
Trust and Asset Management	11,907		12,355		11,716			36,442		35,573
Mortgage Banking	3,291		3,469		1,646			8,453		5,455
Service Charges on Deposit Accounts	8,669		8,203		9,095			25,409		26,611
Fees, Exchange, and Other Service Charges	13,340		13,352		13,390			39,589		39,699
Investment Securities Gains, Net	24		86		1,858			10,341		6,097
Annuity and Insurance	1,721		1,885		2,348			5,650		6,401
Bank-Owned Life Insurance	1,609		2,088		1,644			5,431		4,765
Other	2,660		4,487		3,253			10,138		9,598
Total Noninterest Income	43,221		45,925		44,950			141,453		134,199
Noninterest Expense
Salaries and Benefits	46,576		47,610		45,530			143,966		137,508
Net Occupancy	7,403		8,605		9,334			25,341		28,005
Net Equipment	4,804		4,826		4,473			14,918		13,745
Data Processing	3,920		3,673		3,665			11,366		11,156
Professional Fees	2,258		2,265		1,835			6,857		6,708
FDIC Insurance	2,139		2,068		1,750			6,347		5,881
Other	24,788		14,527		14,443			53,582		42,656
Total Noninterest Expense	91,888		83,574		81,030			262,377		245,659
Income Before Provision for Income Taxes	49,224		60,133		61,964			171,519		176,428
Provision for Income Taxes	14,948		18,979		20,195			53,647		54,577
Net Income	$	34,276	$	41,154	$	41,769		$	117,872	$	121,851
Basic Earnings Per Share	$	0.79	$	0.95	$	0.95		$	2.72	$	2.77
Diluted Earnings Per Share	$	0.79	$	0.95	$	0.95		$	2.71	$	2.75
Dividends Declared Per Share	$	0.45	$	0.45	$	0.45		$	1.35	$	1.35
Basic Weighted Average Shares	43,181,233		43,305,813		43,859,396			43,290,137		44,034,047
Diluted Weighted Average Shares	43,427,730		43,518,349		44,088,553			43,514,898		44,250,033

Bank of Hawaii Corporation and Subsidiaries
Aircraft Impairment	Table 3b
	Three Months Ended
	September 30,
(dollars in thousands)	2015
Noninterest Income
Estimated Loss on Pending Sale of Aircraft Lease	$	(1,019	)
Noninterest Expense
Estimated Impairment of Residual Value on Aircraft in which Leases have Matured	9,453
Loss Before Income Tax Benefit	(10,472		)
Income Tax Benefit	3,999
Impact on Net Income	$	(6,473	)

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income											Table 4
		Three Months Ended							Nine Months Ended
		September 30,		June 30,			September 30,		September 30,
(dollars in thousands)		2015		2015			2014		2015		2014
Net Income		$	34,276	$	41,154		$	41,769	$	117,872	$	121,851
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities	7,051		(7,610		)	403		4,735		15,291
	Defined Benefit Plans	219		220			157		659		469
Total Other Comprehensive Income (Loss)		7,270		(7,390		)	560		5,394		15,760
Comprehensive Income		$	41,546	$	33,764		$	42,329	$	123,266	$	137,611

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands)	2015			2015			2014			2014
Assets
Interest-Bearing Deposits in Other Banks	$	3,609		$	3,420		$	2,873		$	3,883
Funds Sold	274,873			602,598			360,577			377,303
Investment Securities
Available-for-Sale	2,279,722			2,275,361			2,289,190			2,220,913
Held-to-Maturity (Fair Value of $4,181,613; $4,240,732; $4,504,495; and $4,576,396)	4,121,768			4,199,121			4,466,679			4,557,614
Loans Held for Sale	3,222			18,483			5,136			2,382
Loans and Leases	7,689,772			7,428,438			6,897,589			6,606,350
Allowance for Loan and Lease Losses	(104,038		)	(106,006		)	(108,688		)	(110,362		)
Net Loans and Leases	7,585,734			7,322,432			6,788,901			6,495,988
Total Earning Assets	14,268,928			14,421,415			13,913,356			13,658,083
Cash and Due from Banks	208,601			150,874			172,126			172,386
Premises and Equipment, Net	108,987			108,439			109,854			107,560
Accrued Interest Receivable	47,512			44,475			44,654			46,641
Foreclosed Real Estate	1,392			1,989			2,311			3,562
Mortgage Servicing Rights	23,301			23,426			24,695			25,559
Goodwill	31,517			31,517			31,517			31,517
Bank-Owned Life Insurance	266,568			265,133			262,807			261,862
Other Assets	207,317			200,775			225,888			202,996
Total Assets	$	15,164,123		$	15,248,043		$	14,787,208		$	14,510,166
Liabilities
Deposits
Noninterest-Bearing Demand	$	4,102,713		$	4,156,847		$	3,832,943		$	3,824,544
Interest-Bearing Demand	2,631,542			2,699,517			2,559,570			2,369,434
Savings	5,016,462			5,044,711			4,806,575			4,738,364
Time	1,186,245			1,189,620			1,434,001			1,429,099
Total Deposits	12,936,962			13,090,695			12,633,089			12,361,441
Funds Purchased	8,459			8,459			8,459			8,459
Securities Sold Under Agreements to Repurchase	632,138			672,310			688,601			700,203
Other Debt	270,801			170,816			173,912			173,926
Retirement Benefits Payable	54,978			55,181			55,477			35,152
Accrued Interest Payable	5,869			5,254			5,148			6,086
Taxes Payable and Deferred Taxes	25,294			26,244			27,777			42,468
Other Liabilities	131,268			136,145			139,659			125,018
Total Liabilities	14,065,769			14,165,104			13,732,122			13,452,753
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: September 30, 2015 - 57,749,071 / 43,342,940;
June 30, 2015 - 57,745,324 / 43,535,020; December 31, 2014 - 57,634,755 / 43,724,208;
and September 30, 2014 - 57,633,855 / 43,993,729)	575			575			574			573
Capital Surplus	539,112			536,782			531,932			529,530
Accumulated Other Comprehensive Loss	(21,292		)	(28,562		)	(26,686		)	(16,063		)
Retained Earnings	1,293,416			1,278,672			1,234,801			1,213,339
Treasury Stock, at Cost (Shares: September 30, 2015 - 14,406,131; June 30, 2015 - 14,210,304;
December 31, 2014 - 13,910,547; and September 30, 2014 - 13,640,126)	(713,457		)	(704,528		)	(685,535		)	(669,966		)
Total Shareholders' Equity	1,098,354			1,082,939			1,055,086			1,057,413
Total Liabilities and Shareholders' Equity	$	15,164,123		$	15,248,043		$	14,787,208		$	14,510,166

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																	Table 6
								Accum.
								Other
								Compre-
								hensive
	Common Shares			Common		Capital		Income			Retained			Treasury
(dollars in thousands)		Outstanding		Stock		Surplus		(Loss)			Earnings			Stock			Total
Balance as of December 31, 2014		43,724,208		$	574	$	531,932	$	(26,686	)	$	1,234,801		$	(685,535	)	$	1,055,086
Net Income		—		—		—		—			117,872			—			117,872
Other Comprehensive Income		—		—		—		5,394			—			—			5,394
Share-Based Compensation		—		—		5,698		—			—			—			5,698
Common Stock Issued under Purchase and Equity
	Compensation Plans and Related Tax Benefits	246,851		1		1,482		—			(376		)	11,011			12,118
Common Stock Repurchased		(628,119	)	—		—		—			—			(38,933		)	(38,933		)
Cash Dividends Declared ($1.35 per share)		—		—		—		—			(58,881		)	—			(58,881		)
Balance as of September 30, 2015		43,342,940		$	575	$	539,112	$	(21,292	)	$	1,293,416		$	(713,457	)	$	1,098,354
Balance as of December 31, 2013		44,490,385		$	572	$	522,505	$	(31,823	)	$	1,151,754		$	(631,032	)	$	1,011,976
Net Income		—		—		—		—			121,851			—			121,851
Other Comprehensive Income		—		—		—		15,760			—			—			15,760
Share-Based Compensation		—		—		5,831		—			—			—			5,831
Common Stock Issued under Purchase and Equity
	Compensation Plans and Related Tax Benefits	314,579		1		1,194		—			(318		)	7,976			8,853
Common Stock Repurchased		(811,235	)	—		—		—			—			(46,910		)	(46,910		)
Cash Dividends Declared ($1.35 per share)		—		—		—		—			(59,948		)	—			(59,948		)
Balance as of September 30, 2014		43,993,729		$	573	$	529,530	$	(16,063	)	$	1,213,339		$	(669,966	)	$	1,057,413

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, 2015						June 30, 2015						September 30, 2014
		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 in Other Banks		$	3.4	$	—	0.22	%	$	3.5	$	—	0.17	%	$	4.1	$	—	0.24	%
Funds Sold		508.2		0.3		0.22		473.5		0.3		0.22		326.2		0.2		0.21
Investment Securities
	Available-for-Sale
	Taxable	1,524.4		6.5		1.69		1,558.6		6.5		1.68		1,508.0		6.6		1.75
	Non-Taxable	719.4		5.8		3.19		725.8		5.8		3.17		704.0		5.7		3.22
	Held-to-Maturity
	Taxable	3,953.3		19.1		1.93		4,006.4		21.3		2.12		4,390.2		24.4		2.23
	Non-Taxable	247.3		2.4		3.93		248.2		2.4		3.93		250.9		2.5		3.95
Total Investment Securities		6,444.4		33.8		2.09		6,539.0		36.0		2.20		6,853.1		39.2		2.29
Loans Held for Sale		13.4		0.1		3.82		11.1		0.1		3.66		2.0		—		4.03
Loans and Leases 1
	Commercial and Industrial	1,166.7		9.3		3.15		1,156.3		9.1		3.16		980.8		8.9		3.61
	Commercial Mortgage	1,568.2		15		3.79		1,499.7		14.4		3.85		1,350.6		13.3		3.89
	Construction	124.5		1.5		4.93		126.0		1.5		4.85		126.2		1.3		4.20
	Commercial Lease Financing	216.2		1.9		3.50		225.1		2.0		3.47		235.1		2.0		3.33
	Residential Mortgage	2,832.4		28.8		4.07		2,736.2		28.3		4.14		2,396.7		25.3		4.22
	Home Equity	961.3		8.6		3.58		906.8		8.1		3.60		823.3		8.1		3.92
	Automobile	359.2		4.7		5.18		344.4		4.5		5.20		296.6		4.0		5.29
	Other 2	317.5		6.1		7.60		306.0		5.7		7.51		279.5		5.2		7.45
Total Loans and Leases		7,546.0		75.9		4.00		7,300.5		73.6		4.04		6,488.8		68.1		4.18
Other		37.5		0.3		3.33		51.6		0.3		2.40		71.4		0.3		1.69
Total Earning Assets 3		14,552.9		110.4		3.02		14,379.2		110.3		3.07		13,745.6		107.8		3.13
Cash and Due from Banks		131.6						125.8						152.4
Other Assets		536.2						533.5						474.4
Total Assets		$	15,220.7					$	15,038.5					$	14,372.4
Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,622.4	0.2		0.03		$	2,611.9	0.2		0.03		$	2,417.4	0.2		0.03
	Savings	5,067.8		1.1		0.09		5,023.5		1.1		0.09		4,591.4		1.0		0.09
	Time	1,201.3		1.1		0.36		1,256.6		1.1		0.35		1,440.1		1.2		0.34
Total Interest-Bearing Deposits		8,891.5		2.4		0.11		8,892.0		2.4		0.11		8,448.9		2.4		0.11
Short-Term Borrowings		8.5		—		0.14		8.5		—		0.14		9.3		—		0.14
Securities Sold Under Agreements to Repurchase		643.3		6.3		3.84		672.2		6.5		3.79		715.6		6.5		3.57
Other Debt		223.2		0.8		1.34		173.9		0.6		1.43		173.8		0.6		1.44
Total Interest-Bearing Liabilities		9,766.5		9.5		0.38		9,746.6		9.5		0.39		9,347.6		9.5		0.40
Net Interest Income				$	100.9					$	100.8					$	98.3
	Interest Rate Spread					2.64	%					2.68	%					2.73	%
	Net Interest Margin					2.77	%					2.81	%					2.85	%
Noninterest-Bearing Demand Deposits		4,117.4						3,971.3						3,751.8
Other Liabilities		244.2						244.1						208.4
Shareholders' Equity		1,092.6						1,076.5						1,064.6
Total Liabilities and Shareholders' Equity		$	15,220.7					$	15,038.5					$	14,372.4
1  Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.
3  Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $3,035,000, $3,008,000 and $2,873,000 for the three months ended
	September 30, 2015, June 30, 2015, and September 30, 2014, 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, 2015						September 30, 2014
		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	3.3	$	—	0.27	%	$	4.6	$	—	0.20	%
Funds Sold		488.8		0.8		0.22		301.9		0.5		0.21
Investment Securities
	Available-for-Sale
	Taxable	1,547.8		19.5		1.68		1,527.2		20.7		1.81
	Non-Taxable	722.8		17.2		3.18		694.4		16.9		3.24
	Held-to-Maturity
	Taxable	4,032.8		63.2		2.09		4,465.2		76.0		2.27
	Non-Taxable	248.2		7.3		3.93		251.7		7.5		3.96
Total Investment Securities		6,551.6		107.2		2.18		6,938.5		121.1		2.33
Loans Held for Sale		9.2		0.3		3.72		3.3		0.1		4.43
Loans and Leases 1
	Commercial and Industrial	1,151.3		27.2		3.16		951.8		24.8		3.48
	Commercial Mortgage	1,506.3		43.0		3.82		1,301.3		38.6		3.97
	Construction	118.2		4.2		4.75		109.0		3.6		4.35
	Commercial Lease Financing	222.4		5.8		3.46		240.6		5.1		2.81
	Residential Mortgage	2,734.0		84.6		4.13		2,336.1		75.1		4.29
	Home Equity	915.8		24.9		3.63		803.8		23.7		3.94
	Automobile	345.1		13.5		5.21		280.3		11.2		5.33
	Other 2	308.6		17.3		7.49		267.6		15.3		7.66
Total Loans and Leases		7,301.7		220.5		4.03		6,290.5		197.4		4.19
Other		51.6		0.9		2.39		74.1		0.9		1.63
Total Earning Assets 3		14,406.2		329.7		3.05		13,612.9		320.0		3.14
Cash and Due from Banks		131.3						144.5
Other Assets		531.9						463.7
Total Assets		$	15,069.4					$	14,221.1
Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,604.0	0.6		0.03		$	2,367.8	0.5		0.03
	Savings	5,011.2		3.3		0.09		4,549.4		2.9		0.09
	Time	1,278.1		3.3		0.35		1,440.1		3.7		0.35
Total Interest-Bearing Deposits		8,893.3		7.2		0.11		8,357.3		7.1		0.11
Short-Term Borrowings		8.5		—		0.14		9.5		—		0.14
Securities Sold Under Agreements to Repurchase		664.4		19.1		3.79		766.4		19.4		3.34
Other Debt		190.5		2.0		1.39		174.6		1.9		1.45
Total Interest-Bearing Liabilities		9,756.7		28.3		0.38		9,307.8		28.4		0.40
Net Interest Income				$	301.4					$	291.6
	Interest Rate Spread					2.67	%					2.74	%
	Net Interest Margin					2.79	%					2.86	%
Noninterest-Bearing Demand Deposits		3,993.7						3,659.2
Other Liabilities		241.2						205.2
Shareholders' Equity		1,077.8						1,048.9
Total Liabilities and Shareholders' Equity		$	15,069.4					$	14,221.1
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 $8,921,000 and $8,571,000 for the nine months ended
	September 30, 2015 and September 30, 2014, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended September 30, 2015
	Compared to June 30, 2015
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Investment Securities
Available-for-Sale
Taxable	$	(0.1	)	$	0.1		$	—
Non-Taxable	(0.1		)	0.1			—
Held-to-Maturity
Taxable	(0.3		)	(1.9		)	(2.2		)
Total Investment Securities	(0.5		)	(1.7		)	(2.2		)
Loans and Leases
Commercial and Industrial	0.2			—			0.2
Commercial Mortgage	0.8			(0.2		)	0.6
Commercial Lease Financing	(0.1		)	—			(0.1		)
Residential Mortgage	1.0			(0.5		)	0.5
Home Equity	0.5			—			0.5
Automobile	0.2			—			0.2
Other 2	0.3			0.1			0.4
Total Loans and Leases	2.9			(0.6		)	2.3
Other	(0.1		)	0.1			—
Total Change in Interest Income	2.3			(2.2		)	0.1
Change in Interest Expense:
Securities Sold Under Agreements to Repurchase	(0.3		)	0.1			(0.2		)
Other Debt	0.2			—			0.2
Total Change in Interest Expense	(0.1		)	0.1			—
Change in Net Interest Income	$	2.4		$	(2.3	)	$	0.1
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8b
	Three Months Ended September 30, 2015
	Compared to September 30, 2014
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	0.1		$	—		$	0.1
Investment Securities
Available-for-Sale
Taxable	0.1			(0.2		)	(0.1		)
Non-Taxable	0.1			—			0.1
Held-to-Maturity
Taxable	(2.3		)	(3.0		)	(5.3		)
Non-Taxable	—			(0.1		)	(0.1		)
Total Investment Securities	(2.1		)	(3.3		)	(5.4		)
Loans Held for Sale	0.1			—			0.1
Loans and Leases
Commercial and Industrial	1.6			(1.2		)	0.4
Commercial Mortgage	2.1			(0.4		)	1.7
Construction	—			0.2			0.2
Commercial Lease Financing	(0.2		)	0.1			(0.1		)
Residential Mortgage	4.4			(0.9		)	3.5
Home Equity	1.2			(0.7		)	0.5
Automobile	0.8			(0.1		)	0.7
Other 2	0.8			0.1			0.9
Total Loans and Leases	10.7			(2.9		)	7.8
Other	(0.2		)	0.2			—
Total Change in Interest Income	8.6			(6.0		)	2.6
Change in Interest Expense:
Interest-Bearing Deposits
Savings	0.1			—			0.1
Time	(0.2		)	0.1			(0.1		)
Total Interest-Bearing Deposits	(0.1		)	0.1			—
Securities Sold Under Agreements to Repurchase	(0.7		)	0.5			(0.2		)
Other Debt	0.2			—			0.2
Total Change in Interest Expense	(0.6		)	0.6			—
Change in Net Interest Income	$	9.2		$	(6.6	)	$	2.6
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, 2015
	Compared to September 30, 2014
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	0.3		$	—		$	0.3
Investment Securities
Available-for-Sale
Taxable	0.3			(1.5		)	(1.2		)
Non-Taxable	0.7			(0.4		)	0.3
Held-to-Maturity
Taxable	(7.0		)	(5.8		)	(12.8		)
Non-Taxable	(0.1		)	(0.1		)	(0.2		)
Total Investment Securities	(6.1		)	(7.8		)	(13.9		)
Loans Held for Sale	0.2			—			0.2
Loans and Leases
Commercial and Industrial	4.9			(2.5		)	2.4
Commercial Mortgage	5.9			(1.5		)	4.4
Construction	0.3			0.3			0.6
Commercial Lease Financing	(0.4		)	1.1			0.7
Residential Mortgage	12.4			(2.9		)	9.5
Home Equity	3.1			(1.9		)	1.2
Automobile	2.5			(0.2		)	2.3
Other 2	2.3			(0.3		)	2.0
Total Loans and Leases	31.0			(7.9		)	23.1
Other	(0.3		)	0.3			—
Total Change in Interest Income	25.1			(15.4		)	9.7
Change in Interest Expense:
Interest-Bearing Deposits
Demand	0.1			—			0.1
Savings	0.3			0.1			0.4
Time	(0.4		)	—			(0.4		)
Total Interest-Bearing Deposits	—			0.1			0.1
Securities Sold Under Agreements to Repurchase	(2.8		)	2.5			(0.3		)
Other Debt	0.2			(0.1		)	0.1
Total Change in Interest Expense	(2.6		)	2.5			(0.1		)
Change in Net Interest Income	$	27.7		$	(17.9	)	$	9.8
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits									Table 9
	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
(dollars in thousands)	2015		2015		2014		2015		2014
Salaries	$	28,905	$	28,214	$	28,990	$	85,033	$	85,448
Incentive Compensation	4,223		4,959		4,242		13,696		12,832
Share-Based Compensation	2,616		2,751		2,226		7,712		6,466
Commission Expense	1,639		1,927		1,283		5,158		3,448
Retirement and Other Benefits	4,064		4,117		4,056		12,912		12,853
Payroll Taxes	2,200		2,278		2,162		8,063		7,909
Medical, Dental, and Life Insurance	2,870		2,449		2,557		8,503		7,902
Separation Expense	59		915		14		2,889		650
Total Salaries and Benefits	$	46,576	$	47,610	$	45,530	$	143,966	$	137,508

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)		2015		2015		2015		2014		2014
Commercial
	Commercial and Industrial	$	1,169,817	$	1,173,259	$	1,141,408	$	1,055,243	$	991,157
	Commercial Mortgage	1,622,119		1,528,685		1,477,902		1,437,513		1,373,289
	Construction	129,254		118,714		111,381		109,183		132,097
	Lease Financing	202,055		222,113		224,419		226,189		232,381
Total Commercial		3,123,245		3,042,771		2,955,110		2,828,128		2,728,924
Consumer
	Residential Mortgage	2,875,605		2,787,847		2,699,434		2,571,090		2,444,989
	Home Equity	993,817		931,191		884,742		866,688		838,206
	Automobile	367,640		352,128		339,686		323,848		306,003
	Other 1	329,465		314,501		299,656		307,835		288,228
Total Consumer		4,566,527		4,385,667		4,223,518		4,069,461		3,877,426
Total Loans and Leases		$	7,689,772	$	7,428,438	$	7,178,628	$	6,897,589	$	6,606,350
Deposits
		September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)		2015		2015		2015		2014		2014
Consumer		$	6,254,862	$	6,221,691	$	6,220,391	$	6,092,929	$	5,972,435
Commercial		5,397,857		5,524,153		5,444,814		5,163,352		5,070,080
Public and Other		1,284,243		1,344,851		1,314,411		1,376,808		1,318,926
Total Deposits		$	12,936,962	$	13,090,695	$	12,979,616	$	12,633,089	$	12,361,441
1  Comprised of other revolving credit, installment, and lease financing.

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)			2015			2015			2015			2014			2014
Non-Performing Assets
Non-Accrual Loans and Leases
	Commercial
		Commercial and Industrial	$	8,532		$	8,299		$	8,641		$	9,088		$	8,952
		Commercial Mortgage	1,058			716			732			745			1,366
	Total Commercial		9,590			9,015			9,373			9,833			10,318
	Consumer
		Residential Mortgage	14,749			14,918			14,344			14,841			16,756
		Home Equity	3,814			3,528			2,965			3,097			2,671
	Total Consumer		18,563			18,446			17,309			17,938			19,427
Total Non-Accrual Loans and Leases			28,153			27,461			26,682			27,771			29,745
Foreclosed Real Estate			1,392			1,989			2,095			2,311			3,562
Total Non-Performing Assets			$	29,545		$	29,450		$	28,777		$	30,082		$	33,307
Accruing Loans and Leases Past Due 90 Days or More
Commercial
	Commercial and Industrial		$	—		$	750		$	—		$	2		$	14
Total Commercial			—			750			—			2			14
Consumer
	Residential Mortgage		5,060			4,789			3,914			4,506			4,819
	Home Equity		1,396			2,395			2,425			2,596			2,816
	Automobile		631			323			537			616			612
	Other 1		1,058			1,395			1,078			941			842
Total Consumer			8,145			8,902			7,954			8,659			9,089
Total Accruing Loans and Leases Past Due 90 Days or More			$	8,145		$	9,652		$	7,954		$	8,661		$	9,103
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More			$	49,506		$	48,339		$	46,639		$	45,474		$	45,169
Total Loans and Leases			$	7,689,772		$	7,428,438		$	7,178,628		$	6,897,589		$	6,606,350
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.37		%	0.37		%	0.37		%	0.40		%	0.45		%
Ratio of Non-Performing Assets to Total Loans and Leases
	and Foreclosed Real Estate		0.38		%	0.40		%	0.40		%	0.44		%	0.50		%
Ratio of Commercial Non-Performing Assets to Total Commercial
	Loans and Leases and Commercial Foreclosed Real Estate		0.31		%	0.32		%	0.34		%	0.38		%	0.42		%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
	and Leases and Consumer Foreclosed Real Estate		0.44		%	0.45		%	0.44		%	0.47		%	0.56		%
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		0.49		%	0.53		%	0.51		%	0.56		%	0.64		%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter			$	29,450		$	28,777		$	30,082		$	33,307		$	34,389
Additions			4,427			1,909			621			1,885			2,565
Reductions
	Payments		(1,191		)	(1,020		)	(1,427		)	(1,822		)	(2,381		)
	Return to Accrual Status		(1,748		)	—			(187		)	(1,291		)	(704		)
	Sales of Foreclosed Real Estate		(1,300		)	(83		)	(37		)	(1,480		)	(449		)
	Charge-offs/Write-downs		(93		)	(133		)	(275		)	(517		)	(113		)
Total Reductions			(4,332		)	(1,236		)	(1,926		)	(5,110		)	(3,647		)
Balance at End of Quarter			$	29,545		$	29,450		$	28,777		$	30,082		$	33,307
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)			2015			2015			2014			2015			2014
Balance at Beginning of Period			$	111,893		$	113,348		$	119,725		$	114,575		$	121,521
Loans and Leases Charged-Off
	Commercial
		Commercial and Industrial	(160		)	(255		)	(229		)	(650		)	(1,797		)
		Lease Financing	—			—			—			—			(66		)
	Consumer
		Residential Mortgage	—			(54		)	(22		)	(613		)	(674		)
		Home Equity	(634		)	(211		)	(475		)	(1,061		)	(1,379		)
		Automobile	(1,476		)	(1,237		)	(957		)	(4,141		)	(2,585		)
		Other 1	(2,123		)	(1,739		)	(1,978		)	(5,512		)	(5,195		)
Total Loans and Leases Charged-Off			(4,393		)	(3,496		)	(3,661		)	(11,977		)	(11,696		)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
		Commercial and Industrial	426			456			1,177			1,528			4,229
		Commercial Mortgage	15			14			14			43			43
		Construction	8			8			8			24			21
		Lease Financing	55			8			3			131			6
	Consumer
		Residential Mortgage	282			96			299			720			2,906
		Home Equity	693			566			531			2,140			1,433
		Automobile	508			396			322			1,398			1,110
		Other 1	438			497			496			1,343			1,720
Total Recoveries on Loans and Leases Previously Charged-Off			2,425			2,041			2,850			7,327			11,468
Net Loans and Leases Charged-Off			(1,968		)	(1,455		)	(811		)	(4,650		)	(228		)
Provision for Credit Losses			—			—			(2,665		)	—			(4,864		)
Provision for Unfunded Commitments			185			—			—			185			(180		)
Balance at End of Period 2			$	110,110		$	111,893		$	116,249		$	110,110		$	116,249
Components
Allowance for Loan and Lease Losses			$	104,038		$	106,006		$	110,362		$	104,038		$	110,362
Reserve for Unfunded Commitments			6,072			5,887			5,887			6,072			5,887
Total Reserve for Credit Losses			$	110,110		$	111,893		$	116,249		$	110,110		$	116,249
Average Loans and Leases Outstanding			$	7,545,985		$	7,300,506		$	6,488,780		$	7,301,656		$	6,290,548
Ratio of Net Loans and Leases Charged-Off to
	Average Loans and Leases Outstanding (annualized)		0.10		%	0.08		%	0.05		%	0.09		%	0.00		%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases       Outstanding			1.35		%	1.43		%	1.67		%	1.35		%	1.67		%
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, 2015
Net Interest Income	$	51,732		$	37,133		$	4,517		$	4,509		$	97,891
Provision for Credit Losses	2,209			(226		)	(20		)	(1,963		)	—
Net Interest Income After Provision for Credit Losses	49,523			37,359			4,537			6,472			97,891
Noninterest Income	21,206			4,777			14,363			2,875			43,221
Noninterest Expense	(49,963		)	(25,482		)	(14,031		)	(2,412		)	(91,888		)
Income Before Provision for Income Taxes	20,766			16,654			4,869			6,935			49,224
Provision for Income Taxes	(7,352		)	(5,586		)	(1,802		)	(208		)	(14,948		)
Net Income	$	13,414		$	11,068		$	3,067		$	6,727		$	34,276
Total Assets as of September 30, 2015	$	4,578,333		$	3,102,549		$	232,641		$	7,250,600		$	15,164,123
Three Months Ended September 30, 2014 1
Net Interest Income	$	45,432		$	31,780		$	3,864		$	14,303		$	95,379
Provision for Credit Losses	1,853			(834		)	(9		)	(3,675		)	(2,665		)
Net Interest Income After Provision for Credit Losses	43,579			32,614			3,873			17,978			98,044
Noninterest Income	20,132			5,818			14,467			4,533			44,950
Noninterest Expense	(48,569		)	(16,410		)	(13,616		)	(2,435		)	(81,030		)
Income Before Provision for Income Taxes	15,142			22,022			4,724			20,076			61,964
Provision for Income Taxes	(5,498		)	(7,599		)	(1,751		)	(5,347		)	(20,195		)
Net Income	$	9,644		$	14,423		$	2,973		$	14,729		$	41,769
Total Assets as of September 30, 2014 1	$	3,896,841		$	2,680,761		$	192,739		$	7,739,825		$	14,510,166
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, 2015
Net Interest Income	$	150,631		$	107,292		$	13,153		$	21,367		$	292,443
Provision for Credit Losses	5,660			(956		)	(36		)	(4,668		)	—
Net Interest Income After Provision for Credit Losses	144,971			108,248			13,189			26,035			292,443
Noninterest Income	61,123			16,125			44,770			19,435			141,453
Noninterest Expense	(149,461		)	(59,786		)	(43,193		)	(9,937		)	(262,377		)
Income Before Provision for Income Taxes	56,633			64,587			14,766			35,533			171,519
Provision for Income Taxes	(20,097		)	(22,449		)	(5,463		)	(5,638		)	(53,647		)
Net Income	$	36,536		$	42,138		$	9,303		$	29,895		$	117,872
Total Assets as of September 30, 2015	$	4,578,333		$	3,102,549		$	232,641		$	7,250,600		$	15,164,123
Nine Months Ended September 30, 2014 1
Net Interest Income	$	130,971		$	86,934		$	11,098		$	54,021		$	283,024
Provision for Credit Losses	2,895			(2,164		)	(303		)	(5,292		)	(4,864		)
Net Interest Income After Provision for Credit Losses	128,076			89,098			11,401			59,313			287,888
Noninterest Income	59,473			17,617			43,228			13,881			134,199
Noninterest Expense	(146,581		)	(49,834		)	(41,379		)	(7,865		)	(245,659		)
Income Before Provision for Income Taxes	40,968			56,881			13,250			65,329			176,428
Provision for Income Taxes	(15,248		)	(19,343		)	(4,912		)	(15,074		)	(54,577		)
Net Income	$	25,720		$	37,538		$	8,338		$	50,255		$	121,851
Total Assets as of September 30, 2014 1	$	3,896,841		$	2,680,761		$	192,739		$	7,739,825		$	14,510,166
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)	2015			2015			2015			2014			2014
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	75,874		$	73,565		$	70,961		$	69,974		$	68,089
Income on Investment Securities
Available-for-Sale	10,192			10,273			10,198			10,732			10,286
Held-to-Maturity	20,689			22,832			24,407			24,966			26,067
Deposits	2			2			3			2			3
Funds Sold	291			268			259			192			176
Other	312			310			302			303			302
Total Interest Income	107,360			107,250			106,130			106,169			104,923
Interest Expense
Deposits	2,410			2,405			2,368			2,392			2,391
Securities Sold Under Agreements to Repurchase	6,307			6,440			6,371			6,520			6,523
Funds Purchased	3			3			3			3			3
Other Debt	749			620			618			622			627
Total Interest Expense	9,469			9,468			9,360			9,537			9,544
Net Interest Income	97,891			97,782			96,770			96,632			95,379
Provision for Credit Losses	—			—			—			—			(2,665		)
Net Interest Income After Provision for Credit Losses	97,891			97,782			96,770			96,632			98,044
Noninterest Income
Trust and Asset Management	11,907			12,355			12,180			12,225			11,716
Mortgage Banking	3,291			3,469			1,693			2,116			1,646
Service Charges on Deposit Accounts	8,669			8,203			8,537			9,058			9,095
Fees, Exchange, and Other Service Charges	13,340			13,352			12,897			13,702			13,390
Investment Securities Gains, Net	24			86			10,231			1,966			1,858
Annuity and Insurance	1,721			1,885			2,044			1,664			2,348
Bank-Owned Life Insurance	1,609			2,088			1,734			1,874			1,644
Other	2,660			4,487			2,991			3,213			3,253
Total Noninterest Income	43,221			45,925			52,307			45,818			44,950
Noninterest Expense
Salaries and Benefits	46,576			47,610			49,780			45,520			45,530
Net Occupancy	7,403			8,605			9,333			9,291			9,334
Net Equipment	4,804			4,826			5,288			4,734			4,473
Data Processing	3,920			3,673			3,773			3,823			3,665
Professional Fees	2,258			2,265			2,334			3,086			1,835
FDIC Insurance	2,139			2,068			2,140			2,055			1,750
Other	24,788			14,527			14,267			12,731			14,443
Total Noninterest Expense	91,888			83,574			86,915			81,240			81,030
Income Before Provision for Income Taxes	49,224			60,133			62,162			61,210			61,964
Provision for Income Taxes	14,948			18,979			19,720			20,019			20,195
Net Income	$	34,276		$	41,154		$	42,442		$	41,191		$	41,769
Basic Earnings Per Share	$	0.79		$	0.95		$	0.98		$	0.95		$	0.95
Diluted Earnings Per Share	$	0.79		$	0.95		$	0.97		$	0.94		$	0.95
Balance Sheet Totals
Loans and Leases	$	7,689,772		$	7,428,438		$	7,178,628		$	6,897,589		$	6,606,350
Total Assets	15,164,123			15,248,043			15,139,179			14,787,208			14,510,166
Total Deposits	12,936,962			13,090,695			12,979,616			12,633,089			12,361,441
Total Shareholders' Equity	1,098,354			1,082,939			1,075,251			1,055,086			1,057,413
Performance Ratios
Return on Average Assets	0.89		%	1.10		%	1.15		%	1.12		%	1.15			%
Return on Average Shareholders' Equity	12.45			15.33			16.18			15.39			15.57
Efficiency Ratio 1	65.12			58.16			58.30			57.03			57.74
Net Interest Margin 2	2.77			2.81			2.81			2.84			2.85
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, 2015				December 31, 2014						December 31, 2013
Hawaii Economic Trends
State General Fund Revenues 1	$	3,965.0	9.5	%	$	5,535.7		1.6		%	$	5,450.6		3.7		%
General Excise and Use Tax Revenue 1	$	2,113.8	5.6	%	$	2,979.8		2.5		%	$	2,907.6		2.2		%
Jobs 2	649.3				643.7						629.9
								September 30,			December 31,
(spot rates)								2015			2014			2013
Unemployment 3
Statewide, seasonally adjusted								3.4		%	4.0		%	4.7		%
Oahu								3.4			3.5			3.8
Island of Hawaii								4.3			4.7			5.9
Maui								3.8			3.8			4.7
Kauai								4.2			4.3			5.2
					September 30,			December 31,
(percentage change, except months of inventory)					2015			2014			2013			2012
Housing Trends (Single Family Oahu) 4
Median Home Price					4.0		%	3.8		%	4.8		%	7.8		%
Home Sales Volume (units)					4.9		%	(0.8	)	%	4.6		%	6.5		%
Months of Inventory					3.2			2.6			2.7			2.5
					Monthly Visitor Arrivals,						Percentage Change
(in thousands)					Not Seasonally Adjusted						from Previous Year
Tourism 5
August 31, 2015								755.9						2.9
July 31, 2015								816.3						5.6
June 30, 2015								767.9						6.0
May 31, 2015								709.7						9.3
April 30, 2015								677.8						2.3
March 31, 2015								780.1						7.0
February 28, 2015								661.7						2.3
January 31, 2015								678.9						(0.6	)
December 31, 2014								765.3						6.2
November 30, 2014								637.7						2.2
October 31, 2014								659.8						3.0
September 30, 2014								622.2						4.1
August 31, 2014								734.7						(1.9	)
July 31, 2014								772.8						2.0
June 30, 2014								724.5						1.1
May 31, 2014								649.1						1.8
April 30, 2014								662.6						(0.7	)
March 31, 2014								728.8						(5.2	)
February 28, 2014								646.8						(4.3	)
January 31, 2014								682.6						0.1
December 31, 2013								720.8						(1.8	)
November 30, 2013								624.1						(4.2	)
October 31, 2013								640.3						(0.1	)
September 30, 2013								597.7						0.5
August 31, 2013								748.8						2.5
July 31, 2013								758.0						4.6
June 30, 2013								716.6						5.5
May 31, 2013								637.5						2.4
April 30, 2013								667.0						3.1
March 31, 2013								769.1						7.6
February 28, 2013								675.5						7.8
January 31, 2013								681.9						5.9
1  Source: Hawaii Department of Business, Economic Development & Tourism
2  Source: U. S. Bureau of Labor
3  Source: Hawaii Department of Labor and Industrial Relations, County jobs data not seasonally adjusted.
4  Source: Honolulu Board of REALTORS
5  Source: Hawaii Tourism Authority
Note: Certain prior period seasonally adjusted information has been revised.