Bank of Hawaii (BOH) 8-K Bank of Hawaii Corporation Third Quarter 2017 Financial Results

Bank of Hawaii Corporation Third Quarter 2017 Financial Results

•Diluted Earnings Per Share $1.08

•Net Income $45.9 Million

•Board of Directors Declares Dividend of $0.52 Per Share

•Board of Directors Increases Share Repurchase Authorization $100 Million

FOR IMMEDIATE RELEASE

HONOLULU, HI (October 23, 2017) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $1.08 for the third quarter of 2017, up from $1.05 in the second quarter of 2017 and $1.02 in the third quarter of 2016. Net income for the third quarter of 2017 was $45.9 million, an increase of $1.2 million from net income of $44.7 million in the previous quarter and an increase of $2.4 million from net income of $43.5 million in the same quarter last year.

Loan and lease balances increased to $9.6 billion at September 30, 2017, up 2.0 percent from June 30, 2017 and up 10.1 percent compared with September 30, 2016. Deposits grew to $15.0 billion at the end of the third quarter of 2017, up 1.8 percent from the previous quarter and up 9.0 percent compared with the same quarter last year.

"Bank of Hawaii’s financial results remained strong through the third quarter of 2017," said Peter S. Ho, Chairman, President and CEO.  “Loan and deposit balances increased, asset quality remained solid, our net interest margin was stable, and our core expenses declined during the quarter.”

The return on average assets for the third quarter of 2017 was 1.07 percent, down from 1.09 percent in the previous quarter and 1.09 percent in the same quarter last year. The return on average equity for the third quarter of 2017 was 14.89 percent, up from 14.87 percent for the second quarter of 2017 and equal to the return on average equity of 14.89 percent in the third quarter of 2016. The efficiency ratio for the third quarter of 2017 was 55.82 percent compared with 55.99 percent in the previous quarter and 57.58 percent in the same quarter last year.

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Bank of Hawaii Corporation Third Quarter 2017 Financial Results     Page 2

For the nine-month period ended September 30, 2017, net income was $141.7 million, an increase of $3.8 million from net income of $137.9 million for the same period last year. Diluted earnings per share were $3.32 for the nine-month period in 2017 compared with diluted earnings per share of $3.21 for the same period in 2016. The 2017 year-to-date return on average assets was 1.14 percent compared with 1.17 percent for the same period in 2016. The 2017 year-to-date return on average equity was 15.77 percent compared with 16.09 percent for the nine months ended September 30, 2016. The efficiency ratio for the nine-month period ended September 30, 2017 declined to 55.05 percent compared with 56.57 percent for the same period last year.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the third quarter of 2017 was $119.2 million, an increase of $3.9 million from net interest income of $115.3 million in the second quarter of 2017 and an increase of $12.3 million from net interest income of $106.9 million in the third quarter of last year. Net interest income in the third quarter of 2016 included a reversal of $0.8 million for an interest recovery previously recorded in the second quarter of 2016. Net interest income for the nine-month period in 2017 was $347.5 million, an increase of $28.1 million from net interest income of $319.4 million for the same period in 2016. Analyses of the changes in net interest income are included in Tables 8a, 8b, and 8c.

The net interest margin was 2.92 percent for the third quarter of 2017, unchanged from the second quarter of 2017 and a 12 basis point increase from the net interest margin of 2.80 percent in the third quarter of 2016. Adjusted for the interest reversal, the net interest margin in the third quarter of 2016 was 2.82 percent. The net interest margin for the first nine months of 2017 was 2.91 percent compared with 2.84 percent for the same nine-month period last year.

Results for the third quarter of 2017 included a provision for credit losses of $4.0 million due to the continued strong growth of loans and leases. Second quarter of 2017 results included a provision for credit losses of $4.3 million. Results for the third quarter of 2016 included a provision for credit losses of $2.5 million. The provision for credit losses during the first nine months of 2017 was $12.7 million compared with $1.5 million during the same period in 2016. Provision expense in 2016 reflected a recovery of $6.6 million related to one commercial client in Guam.

Noninterest income was $42.4 million in the third quarter of 2017, down $2.8 million from noninterest income of $45.2 million in the second quarter of 2017 and down $5.7 million from $48.1 million in the same quarter last year. Mortgage banking income decreased to $3.2 million in the third quarter of 2017 compared with $3.8 million in the second quarter of 2017 and $6.4 million in the third quarter last year. Noninterest income for the nine-months ended September 30, 2017 was $143.6 million compared with noninterest income of $150.8 million for the same period in 2016. The decrease from the previous year was primarily due to the decline in mortgage banking income, lower revenue from the customer derivative program and gains on sales of assets during 2016.

Noninterest expense was $88.6 million in the third quarter of 2017, up $0.4 million from noninterest expense of $88.2 million in the previous quarter and up $1.1 million from $87.5 million in the same quarter last year. Noninterest expense in the third quarter of 2017 included $2.1 million in severance which was partially offset by a reduction of $0.9 million in share-based compensation. Noninterest expense for the nine-months ended September 30, 2017 was $265.4 million compared with noninterest expense of $261.0 million for the same period in 2016. 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 2017 Financial Results     Page 3

The effective tax rate for the third quarter of 2017 was 30.62 percent compared with 31.37 percent in the previous quarter and 29.84 percent during the same quarter last year. Taxes for the third quarter of 2016 included a $0.7 million release of reserves. The effective tax rate for the nine-month period ended September 30, 2017 was 30.54 percent compared with 30.62 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 solid during the third quarter of 2017. Total non-performing assets were $17.0 million at September 30, 2017 compared with $16.4 million at June 30, 2017 and $18.7 million at September 30, 2016. As a percentage of total loans and leases and foreclosed real estate, non-performing assets were 0.18 percent at September 30, 2017 compared with 0.17 percent at June 30, 2017 and 0.21 percent at September 30, 2016.

Accruing loans and leases past due 90 days or more were $6.7 million at September 30, 2017 compared with $7.0 million at June 30, 2017 and $5.6 million at September 30, 2016. Restructured loans and leases not included in non-accrual loans or accruing loans past due 90 days or more were $55.0 million at September 30, 2017 compared with $53.2 million at June 30, 2017 and $52.1 million at September 30, 2016. 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 2017 were $3.5 million or 0.15 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $6.2 million during the quarter were partially offset by recoveries of $2.7 million. Net charge-offs during the second quarter of 2017 were $3.0 million or 0.13 percent annualized of total average loans and leases outstanding and were comprised of $5.5 million in charge-offs partially offset by recoveries of $2.5 million. Net charge-offs during the third quarter of 2016 were $2.4 million or 0.11 percent annualized of total average loans and leases outstanding and were comprised of $4.9 million in charge-offs partially offset by recoveries of $2.5 million. Net charge-offs in the nine-month period ended September 30, 2017 were $10.0 million, or 0.15 percent annualized of total average loans and leases outstanding compared with net charge-offs of $0.3 million, or 0.01 percent annualized of total average loans and leases outstanding for the same period in 2016. The lower charge-off rate during 2016 was largely due to the previously mentioned recovery of previously charged off loans to a commercial client in Guam.

The allowance for loan and lease losses increased to $106.9 million at September 30, 2017 due to continued strong loan growth. The allowance for loan and lease losses was $106.4 million at June 30, 2017 and $104.0 million at September 30, 2016. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.12 percent at September 30, 2017, a decrease of 1 basis point from the previous quarter and down 8 basis points from the end of the same quarter last year. The reserve for unfunded commitments at September 30, 2017 of $6.8 million was unchanged from June 30, 2017 and up from $6.6 million at September 30, 2016. 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 2017 Financial Results     Page 4

Other Financial Highlights

Total assets were $17.3 billion at September 30, 2017, an increase of $287.0 million from total assets of $17.0 billion at June 30, 2017 and $1.3 billion from total assets of $16.0 billion at September 30, 2016. Average total assets were $17.0 billion during the third quarter of 2017 compared with $16.5 billion during the previous quarter and $15.9 billion during the same quarter last year.

The investment securities portfolio was $6.3 billion at September 30, 2017, reflecting increases of $183.8 million from total securities of $6.1 billion at June 30, 2017 and $253.9 million from total securities of $6.0 billion at September 30, 2016. The portfolio remains largely comprised of securities issued by U. S. government agencies and included $4.0 billion in securities held to maturity and $2.3 billion in securities available for sale at September 30, 2017. 

Total loans and leases were $9.6 billion at September 30, 2017, an increase of $186.3 million from total loans and leases of $9.4 billion at June 30, 2017 and $879.9 million from total loans and leases of $8.7 billion at September 30, 2016. Average total loans and leases increased to $9.5 billion during the third quarter of 2017 compared with $9.2 billion during the second quarter of 2017 and $8.5 billion during the same quarter last year. The commercial loan portfolio increased to $3.7 billion at the end of the third quarter of 2017, up slightly from the end of the previous quarter and up from $3.5 billion at the end of the same quarter last year. Total consumer loans increased to $5.8 billion at the end of the third quarter of 2017, up from $5.7 billion at the end of the second quarter of 2017 and $5.2 billion at the end of the third quarter of 2016. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $15.0 billion at September 30, 2017, an increase of $263.5 million from total deposits of $14.8 billion at June 30, 2017 and $1.2 billion from total deposits of $13.8 billion at September 30, 2016. Average total deposits increased to $14.7 billion during the third quarter of 2017 compared with $14.3 billion during the previous quarter and $13.7 billion during the same quarter last year. Consumer deposits were $7.3 billion at the end of the third quarter of 2017, up slightly from the end of the previous quarter and up from $6.8 billion at the end of the same quarter last year. Commercial deposits were $6.1 billion at the end of the third quarter of 2017, up from $5.9 billion at the end of the previous quarter and up from $5.8 billion at the end of the same quarter last year. Other deposits, including public funds, were $1.7 billion at the end of the third quarter of 2017, up from $1.6 billion at the end of the previous quarter and up from $1.3 billion at the end of the same quarter last year. Deposit balances are summarized in Tables 7 and 10.

During the third quarter of 2017, the Company repurchased 183.5 thousand shares of common stock at a total cost of $14.8 million under its share repurchase program. The average cost was $80.89 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through September 30, 2017, the Company repurchased 54.1 million shares and returned nearly $2.1 billion to shareholders at an average cost of $38.19 per share. The Company’s Board of Directors increased the authorization under the share repurchase program by an additional $100.0 million. From October 2 through October 20, 2017 the Company repurchased an additional 44.5 thousand shares of common stock at an average cost of $83.97 per share. Remaining buyback authority under the share repurchase program was $126.9 million at October 20, 2017.

Total shareholders’ equity was $1.2 billion at September 30, 2017. The Tier 1 Capital Ratio was 13.27 percent at September 30, 2017 compared with 13.34 percent at June 30, 2017 and 13.40 percent at September 30, 2016. The Tier 1 leverage ratio at September 30, 2017 was 7.24 percent compared with 7.37 percent at June 30, 2017 and 7.25 percent at September 30, 2016.

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Bank of Hawaii Corporation Third Quarter 2017 Financial Results     Page 5

The Company’s Board of Directors has declared a quarterly cash dividend of $0.52 per share on the Company’s outstanding shares. The dividend will be payable on December 14, 2017 to shareholders of record at the close of business on November 30, 2017.

Hawaii Economy

General economic conditions in Hawaii remained positive during the third quarter of 2017.  The statewide seasonally-adjusted unemployment rate continues to remain low, declining to 2.5 percent in September 2017 compared to 4.2 percent nationally.  Tourism remained robust through the first eight months of 2017. Total visitor spending increased 8.5 percent due to growth of 4.7 percent in visitor arrivals and an increase of 3.9 percent in daily spending compared to the same eight-month period in 2016.  The real estate market also remains strong. For the first nine months of 2017, the volume of single-family home sales on Oahu increased 5.0 percent and the volume of condominium sales on Oahu increased 5.8 percent compared with the same period in 2016.  The median sales price of a single-family home on Oahu increased 3.4 percent and the median price of a condominium on Oahu increased 5.4 percent for the first nine months of 2017 compared to the same nine-month period in 2016.  As of September 30, 2017, months of inventory of single-family homes and condominiums on Oahu were 2.4 months and 2.6 months, respectively.  More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its third quarter 2017 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 website, www.boh.com. The toll-free number is (844) 543-5235 in the United States and Canada and (703) 318-2209 for other 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 23, 2017. The replay number is (855) 859-2056 in the United States and Canada and (404) 537-3406 from other international locations. Enter the pass code 95696390 when prompted. Participants can also dial 1 (800) 585-8367 to access the replay. In addition, a replay will 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, 2016, 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 an independent 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. 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)	2017			2017			2016			2017			2016
For the Period:
Operating Results
Net Interest Income	$	116,317		$	112,279		$	103,912		$	338,468		$	310,486
Provision for Credit Losses	4,000			4,250			2,500			12,650			1,500
Total Noninterest Income	42,410			45,236			48,114			143,562			150,840
Total Noninterest Expense	88,598			88,189			87,532			265,355			260,989
Net Income	45,881			44,662			43,493			141,719			137,948
Basic Earnings Per Share	1.09			1.05			1.02			3.35			3.23
Diluted Earnings Per Share	1.08			1.05			1.02			3.32			3.21
Dividends Declared Per Share	0.52			0.50			0.48			1.52			1.41
Performance Ratios
Return on Average Assets	1.07		%	1.09		%	1.09		%	1.14		%	1.17		%
Return on Average Shareholders' Equity	14.89			14.87			14.89			15.77			16.09
Efficiency Ratio 1	55.82			55.99			57.58			55.05			56.57
Net Interest Margin 2	2.92			2.92			2.80			2.91			2.84
Dividend Payout Ratio 3	47.71			47.62			47.06			45.37			43.65
Average Shareholders' Equity to Average Assets	7.21			7.30			7.30			7.22			7.30
Average Balances
Average Loans and Leases	$	9,451,972		$	9,217,779		$	8,483,588		$	9,231,615		$	8,210,596
Average Assets	16,972,202			16,495,925			15,906,760			16,636,213			15,695,251
Average Deposits	14,727,469			14,253,149			13,687,186			14,401,698			13,492,609
Average Shareholders' Equity	1,222,885			1,204,837			1,161,655			1,201,850			1,145,094
Per Share of Common Stock
Book Value	$	28.88		$	28.45		$	27.24		$	28.88		$	27.24
Tangible Book Value	28.14			27.72			26.50			28.14			26.50
Market Value
Closing	83.36			82.97			72.62			83.36			72.62
High	86.19			84.99			73.44			90.80			73.44
Low	74.72			75.92			65.19			74.72			54.55
				September 30,			June 30,			December 31,			September 30,
				2017			2017			2016			2016
As of Period End:
Balance Sheet Totals
Loans and Leases				$	9,573,956		$	9,387,613		$	8,949,785		$	8,694,097
Total Assets				17,268,302			16,981,292			16,492,367			16,014,643
Total Deposits				15,048,160			14,784,649			14,320,240			13,808,365
Other Debt				267,887			267,904			267,938			267,954
Total Shareholders' Equity				1,227,893			1,213,757			1,161,537			1,163,859
Asset Quality
Non-Performing Assets				$	17,035		$	16,368		$	19,761		$	18,672
Allowance for Loan and Lease Losses				106,881			106,353			104,273			104,033
Allowance to Loans and Leases Outstanding				1.12		%	1.13		%	1.17		%	1.20		%
Capital Ratios
Common Equity Tier 1 Capital Ratio				13.27		%	13.34		%	13.24		%	13.40		%
Tier 1 Capital Ratio				13.27			13.34			13.24			13.40
Total Capital Ratio				14.51			14.58			14.49			14.65
Tier 1 Leverage Ratio				7.24			7.37			7.21			7.25
Total Shareholders' Equity to Total Assets				7.11			7.15			7.04			7.27
Tangible Common Equity to Tangible Assets 4				6.94			6.97			6.86			7.08
Tangible Common Equity to Risk-Weighted Assets 4				12.96			13.01			12.81			13.18
Non-Financial Data
Full-Time Equivalent Employees				2,120			2,142			2,122			2,125
Branches				69			69			69			70
ATMs				388			388			449			450
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 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)		2017			2017			2016			2016
Total Shareholders' Equity		$	1,227,893		$	1,213,757		$	1,161,537		$	1,163,859
Less:	Goodwill	31,517			31,517			31,517			31,517
Tangible Common Equity		$	1,196,376		$	1,182,240		$	1,130,020		$	1,132,342
Total Assets		$	17,268,302		$	16,981,292		$	16,492,367		$	16,014,643
Less:	Goodwill	31,517			31,517			31,517			31,517
Tangible Assets		$	17,236,785		$	16,949,775		$	16,460,850		$	15,983,126
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements		$	9,233,969		$	9,087,057		$	8,823,485		$	8,591,440
Total Shareholders' Equity to Total Assets		7.11		%	7.15		%	7.04		%	7.27		%
Tangible Common Equity to Tangible Assets (Non-GAAP)		6.94		%	6.97		%	6.86		%	7.08		%
Tier 1 Capital Ratio		13.27		%	13.34		%	13.24		%	13.40		%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)		12.96		%	13.01		%	12.81		%	13.18		%

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)	2017			2017			2016			2017		2016
Interest Income
Interest and Fees on Loans and Leases	$	94,621		$	90,909		$	83,489		$	273,467	$	246,707
Income on Investment Securities
Available-for-Sale	11,987			11,835			10,313			34,906		31,648
Held-to-Maturity	20,334			19,918			19,315			59,958		59,874
Deposits	5			2			1			12		7
Funds Sold	1,579			696			695			3,165		2,066
Other	235			208			166			673		531
Total Interest Income	128,761			123,568			113,979			372,181		340,833
Interest Expense
Deposits	6,663			4,998			3,232			15,352		9,199
Securities Sold Under Agreements to Repurchase	4,664			5,079			5,713			14,928		18,000
Funds Purchased	—			39			3			42		9
Short-Term Borrowings	—			64			—			64		—
Other Debt	1,117			1,109			1,119			3,327		3,139
Total Interest Expense	12,444			11,289			10,067			33,713		30,347
Net Interest Income	116,317			112,279			103,912			338,468		310,486
Provision for Credit Losses	4,000			4,250			2,500			12,650		1,500
Net Interest Income After Provision for Credit Losses	112,317			108,029			101,412			325,818		308,986
Noninterest Income
Trust and Asset Management	11,050			11,796			11,008			34,325		34,971
Mortgage Banking	3,237			3,819			6,362			10,356		13,639
Service Charges on Deposit Accounts	8,188			8,009			8,524			24,522		25,117
Fees, Exchange, and Other Service Charges	13,764			13,965			14,023			41,061		41,445
Investment Securities Gains (Losses), Net	(566		)	(520		)	(328		)	11,047		10,540
Annuity and Insurance	1,429			2,161			1,653			5,585		5,560
Bank-Owned Life Insurance	1,861			1,550			1,911			4,908		5,010
Other	3,447			4,456			4,961			11,758		14,558
Total Noninterest Income	42,410			45,236			48,114			143,562		150,840
Noninterest Expense
Salaries and Benefits	51,626			50,113			49,725			153,341		150,528
Net Occupancy	7,727			8,131			8,510			24,026		22,671
Net Equipment	5,417			5,706			4,913			16,624		15,387
Data Processing	3,882			3,881			3,620			11,173		11,543
Professional Fees	3,044			2,592			2,396			8,415		7,082
FDIC Insurance	2,107			2,097			2,104			6,413		6,600
Other	14,795			15,669			16,264			45,363		47,178
Total Noninterest Expense	88,598			88,189			87,532			265,355		260,989
Income Before Provision for Income Taxes	66,129			65,076			61,994			204,025		198,837
Provision for Income Taxes	20,248			20,414			18,501			62,306		60,889
Net Income	$	45,881		$	44,662		$	43,493		$	141,719	$	137,948
Basic Earnings Per Share	$	1.09		$	1.05		$	1.02		$	3.35	$	3.23
Diluted Earnings Per Share	$	1.08		$	1.05		$	1.02		$	3.32	$	3.21
Dividends Declared Per Share	$	0.52		$	0.50		$	0.48		$	1.52	$	1.41
Basic Weighted Average Shares	42,251,541			42,353,976			42,543,122			42,336,441		42,730,571
Diluted Weighted Average Shares	42,565,364			42,658,885			42,778,346			42,662,163		42,947,059

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)		2017		2017		2016			2017		2016
Net Income		$	45,881	$	44,662	$	43,493		$	141,719	$	137,948
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities	444		3,106		(5,528		)	8,444		8,323
	Defined Benefit Plans	146		147		140			439		422
Total Other Comprehensive Income (Loss)		590		3,253		(5,388		)	8,883		8,745
Comprehensive Income		$	46,471	$	47,915	$	38,105		$	150,602	$	146,693

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands)	2017			2017			2016			2016
Assets
Interest-Bearing Deposits in Other Banks	$	3,161		$	3,913		$	3,187		$	4,181
Funds Sold	512,868			742,221			707,343			506,604
Investment Securities
Available-for-Sale	2,322,668			2,316,728			2,186,041			2,213,482
Held-to-Maturity (Fair Value of $3,960,956; $3,785,641; $3,827,527; and $3,893,542)	3,960,598			3,782,702			3,832,997			3,815,915
Loans Held for Sale	9,752			20,354			62,499			68,066
Loans and Leases	9,573,956			9,387,613			8,949,785			8,694,097
Allowance for Loan and Lease Losses	(106,881		)	(106,353		)	(104,273		)	(104,033		)
Net Loans and Leases	9,467,075			9,281,260			8,845,512			8,590,064
Total Earning Assets	16,276,122			16,147,178			15,637,579			15,198,312
Cash and Due from Banks	245,487			128,093			169,077			127,326
Premises and Equipment, Net	125,162			119,569			113,505			110,288
Accrued Interest Receivable	51,526			46,595			46,444			46,925
Foreclosed Real Estate	1,393			1,991			1,686			1,747
Mortgage Servicing Rights	24,436			24,471			23,663			20,991
Goodwill	31,517			31,517			31,517			31,517
Bank-Owned Life Insurance	278,425			277,235			274,188			272,637
Other Assets	234,234			204,643			194,708			204,900
Total Assets	$	17,268,302		$	16,981,292		$	16,492,367		$	16,014,643
Liabilities
Deposits
Noninterest-Bearing Demand	$	4,825,643		$	4,706,962		$	4,772,727		$	4,437,963
Interest-Bearing Demand	2,896,559			3,029,549			2,934,107			2,777,095
Savings	5,363,866			5,364,191			5,395,699			5,306,880
Time	1,962,092			1,683,947			1,217,707			1,286,427
Total Deposits	15,048,160			14,784,649			14,320,240			13,808,365
Funds Purchased	—			—			9,616			9,616
Securities Sold Under Agreements to Repurchase	505,293			505,292			523,378			551,683
Other Debt	267,887			267,904			267,938			267,954
Retirement Benefits Payable	38,308			48,346			48,451			47,522
Accrued Interest Payable	6,717			5,105			5,334			6,115
Taxes Payable and Deferred Taxes	31,360			31,444			21,674			24,922
Other Liabilities	142,684			124,795			134,199			134,607
Total Liabilities	16,040,409			15,767,535			15,330,830			14,850,784
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: September 30, 2017 - 57,958,200 / 42,513,348;
June 30, 2017 - 57,972,647 / 42,655,954; December 31, 2016 - 57,856,672 / 42,635,978;
and September 30, 2016 - 57,854,843 / 42,733,513)	576			576			576			576
Capital Surplus	558,530			556,409			551,628			549,064
Accumulated Other Comprehensive Loss	(25,023		)	(25,613		)	(33,906		)	(14,812		)
Retained Earnings	1,491,830			1,468,328			1,415,440			1,393,231
Treasury Stock, at Cost (Shares: September 30, 2017 - 15,444,852; June 30, 2017 - 15,316,693;
December 31, 2016 - 15,220,694; and September 30, 2016 - 15,121,330)	(798,020		)	(785,943		)	(772,201		)	(764,200		)
Total Shareholders' Equity	1,227,893			1,213,757			1,161,537			1,163,859
Total Liabilities and Shareholders' Equity	$	17,268,302		$	16,981,292		$	16,492,367		$	16,014,643

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, 2016		42,635,978		$	576	$	551,628	$	(33,906	)	$	1,415,440		$	(772,201	)	$	1,161,537
Net Income		—		—		—		—			141,719			—			141,719
Other Comprehensive Income		—		—		—		8,883			—			—			8,883
Share-Based Compensation		—		—		5,332		—			—			—			5,332
Common Stock Issued under Purchase and Equity
	Compensation Plans and Related Tax Benefits	319,377		—		1,570		—			(383		)	10,552			11,739
Common Stock Repurchased		(442,007	)	—		—		—			—			(36,371		)	(36,371		)
Cash Dividends Declared ($1.52 per share)		—		—		—		—			(64,946		)	—			(64,946		)
Balance as of September 30, 2017		42,513,348		$	576	$	558,530	$	(25,023	)	$	1,491,830		$	(798,020	)	$	1,227,893
Balance as of December 31, 2015		43,282,153		$	575	$	542,041	$	(23,557	)	$	1,316,260		$	(719,059	)	$	1,116,260
Net Income		—		—		—		—			137,948			—			137,948
Other Comprehensive Income		—		—		—		8,745			—			—			8,745
Share-Based Compensation		—		—		5,020		—			—			—			5,020
Common Stock Issued under Purchase and Equity
	Compensation Plans and Related Tax Benefits	224,018		1		2,003		—			(314		)	6,224			7,914
Common Stock Repurchased		(772,658	)	—		—		—			—			(51,365		)	(51,365		)
Cash Dividends Declared ($1.41 per share)		—		—		—		—			(60,663		)	—			(60,663		)
Balance as of September 30, 2016		42,733,513		$	576	$	549,064	$	(14,812	)	$	1,393,231		$	(764,200	)	$	1,163,859

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, 2017						June 30, 2017						September 30, 2016
		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		$	3.5	$	—	0.48	%	$	3.6	$	—	0.29	%	$	4.1	$	—	0.19	%
Funds Sold		575.2		1.6		1.07		353.5		0.7		0.78		585.9		0.7		0.46
Investment Securities
	Available-for-Sale
	Taxable	1,658.2		8.6		2.08		1,683.4		8.4		1.98		1,574.9		6.8		1.72
	Non-Taxable	636.7		5.2		3.26		658.9		5.4		3.26		687.1		5.4		3.16
	Held-to-Maturity
	Taxable	3,631.1		18.8		2.07		3,596.1		18.4		2.05		3,563.8		17.8		1.99
	Non-Taxable	239.9		2.4		3.87		240.9		2.3		3.88		243.7		2.4		3.90
Total Investment Securities		6,165.9		35.0		2.27		6,179.3		34.5		2.23		6,069.5		32.4		2.13
Loans Held for Sale		20.6		0.2		3.88		23.8		0.2		4.04		57.7		0.5		3.52
Loans and Leases 1
	Commercial and Industrial	1,251.5		11.3		3.58		1,251.2		10.9		3.51		1,192.0		9.8		3.26
	Commercial Mortgage	2,015.0		19.6		3.87		1,946.3		18.4		3.80		1,730.2		15.4		3.55
	Construction	241.0		2.9		4.73		240.0		2.8		4.70		239.4		2.6		4.38
	Commercial Lease Financing	204.7		1.2		2.30		208.0		1.2		2.27		195.1		1.2		2.38
	Residential Mortgage	3,333.3		31.8		3.82		3,272.7		31.1		3.80		3,082.9		30.4		3.94
	Home Equity	1,502.9		13.8		3.65		1,445.8		13.1		3.62		1,254.4		11.3		3.59
	Automobile	493.2		5.9		4.71		474.1		5.9		4.97		426.2		5.5		5.15
	Other 2	410.4		8.2		7.98		379.7		7.6		8.06		363.4		7.0		7.69
Total Loans and Leases		9,452.0		94.7		3.99		9,217.8		91.0		3.96		8,483.6		83.2		3.91
Other		40.2		0.2		2.34		41.0		0.2		2.03		39.9		0.1		1.66
Total Earning Assets 3		16,257.4		131.7		3.23		15,819.0		126.6		3.21		15,240.7		116.9		3.06
Cash and Due from Banks		151.2						120.8						133.2
Other Assets		563.6						556.1						532.9
Total Assets		$	16,972.2					$	16,495.9					$	15,906.8
Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,880.0	0.5		0.07		$	2,862.7	0.5		0.07		$	2,770.2	0.2		0.03
	Savings	5,374.4		1.8		0.13		5,376.9		1.6		0.12		5,208.3		1.1		0.09
	Time	1,788.2		4.4		0.97		1,480.5		2.9		0.78		1,272.6		1.9		0.59
Total Interest-Bearing Deposits		10,042.6		6.7		0.26		9,720.1		5.0		0.21		9,251.1		3.2		0.14
Short-Term Borrowings		—		—		—		36.5		0.1		1.10		8.7		—		0.13
Securities Sold Under Agreements to Repurchase		505.3		4.7		3.61		505.3		5.1		3.98		556.5		5.7		4.02
Other Debt		267.9		1.1		1.66		267.9		1.1		1.66		268.0		1.1		1.66
Total Interest-Bearing Liabilities		10,815.8		12.5		0.45		10,529.8		11.3		0.43		10,084.3		10.0		0.39
Net Interest Income				$	119.2					$	115.3					$	106.9
	Interest Rate Spread					2.78	%					2.78	%					2.67	%
	Net Interest Margin					2.92	%					2.92	%					2.80	%
Noninterest-Bearing Demand Deposits		4,684.9						4,533.0						4,436.1
Other Liabilities		248.6						228.3						224.7
Shareholders' Equity		1,222.9						1,204.8						1,161.7
Total Liabilities and Shareholders' Equity		$	16,972.2					$	16,495.9					$	15,906.8
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 $2,920,000, $3,054,000 and $2,967,000 for the three months
	ended September 30, 2017, June 30, 2017, and September 30, 2016, 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, 2017						September 30, 2016
		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	3.5	$	—	0.44	%	$	4.2	$	—	0.26	%
Funds Sold		491.1		3.2		0.85		586.8		2.0		0.46
Investment Securities
	Available-for-Sale
	Taxable	1,655.8		24.6		1.98		1,594.3		20.9		1.75
	Non-Taxable	652.0		15.9		3.26		697.9		16.5		3.16
	Held-to-Maturity
	Taxable	3,605.8		55.4		2.05		3,627.4		55.2		2.03
	Non-Taxable	240.9		7.0		3.88		244.6		7.2		3.91
Total Investment Securities		6,154.5		102.9		2.23		6,164.2		99.8		2.16
Loans Held for Sale		24.9		0.7		3.98		30.0		0.8		3.58
Loans and Leases 1
	Commercial and Industrial	1,255.4		32.7		3.49		1,165.2		30.3		3.48
	Commercial Mortgage	1,948.1		55.5		3.81		1,702.1		47.5		3.73
	Construction	246.7		8.6		4.66		206.9		6.9		4.47
	Commercial Lease Financing	207.1		3.5		2.25		196.8		3.7		2.48
	Residential Mortgage	3,269.7		93.8		3.82		3,002.6		90.0		4.00
	Home Equity	1,439.2		38.9		3.61		1,176.5		32.0		3.63
	Automobile	476.4		17.5		4.90		407.0		15.8		5.17
	Other 2	389.0		23.2		7.98		353.5		20.4		7.70
Total Loans and Leases		9,231.6		273.7		3.96		8,210.6		246.6		4.01
Other		40.4		0.7		2.22		38.8		0.5		1.83
Total Earning Assets 3		15,946.0		381.2		3.19		15,034.6		349.7		3.10
Cash and Due from Banks		134.8						128.2
Other Assets		555.4						532.5
Total Assets		$	16,636.2					$	15,695.3
Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,869.7	1.3		0.06		$	2,756.7	0.7		0.03
	Savings	5,385.7		4.7		0.12		5,177.0		3.4		0.09
	Time	1,529.2		9.4		0.82		1,232.1		5.1		0.55
Total Interest-Bearing Deposits		9,784.6		15.4		0.21		9,165.8		9.2		0.13
Short-Term Borrowings		15.3		0.1		0.91		7.9		—		0.14
Securities Sold Under Agreements to Repurchase		507.7		14.9		3.88		582.0		18.0		4.06
Other Debt		267.9		3.3		1.66		242.5		3.1		1.73
Total Interest-Bearing Liabilities		10,575.5		33.7		0.42		9,998.2		30.3		0.40
Net Interest Income				$	347.5					$	319.4
	Interest Rate Spread					2.77	%					2.70	%
	Net Interest Margin					2.91	%					2.84	%
Noninterest-Bearing Demand Deposits		4,617.1						4,326.8
Other Liabilities		241.7						225.2
Shareholders' Equity		1,201.9						1,145.1
Total Liabilities and Shareholders' Equity		$	16,636.2					$	15,695.3
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 $9,035,000 and $8,957,000 for the nine months
	ended September 30, 2017 and September 30, 2016, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended September 30, 2017
	Compared to June 30, 2017
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	0.6		$	0.3		$	0.9
Investment Securities
Available-for-Sale
Taxable	(0.2		)	0.4			0.2
Non-Taxable	(0.2		)	—			(0.2		)
Held-to-Maturity
Taxable	0.2			0.2			0.4
Non-Taxable	—			0.1			0.1
Total Investment Securities	(0.2		)	0.7			0.5
Loans and Leases
Commercial and Industrial	—			0.4			0.4
Commercial Mortgage	0.8			0.4			1.2
Construction	—			0.1			0.1
Residential Mortgage	0.6			0.1			0.7
Home Equity	0.6			0.1			0.7
Automobile	0.3			(0.3		)	—
Other 2	0.7			(0.1		)	0.6
Total Loans and Leases	3.0			0.7			3.7
Total Change in Interest Income	3.4			1.7			5.1
Change in Interest Expense:
Interest-Bearing Deposits
Savings	—			0.2			0.2
Time	0.7			0.8			1.5
Total Interest-Bearing Deposits	0.7			1.0			1.7
Short-Term Borrowings	(0.1		)	—			(0.1		)
Securities Sold Under Agreements to Repurchase	—			(0.4		)	(0.4		)
Total Change in Interest Expense	0.6			0.6			1.2
Change in Net Interest Income	$	2.8		$	1.1		$	3.9
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, 2017
	Compared to September 30, 2016
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	—		$	0.9		$	0.9
Investment Securities
Available-for-Sale
Taxable	0.4			1.4			1.8
Non-Taxable	(0.4		)	0.2			(0.2		)
Held-to-Maturity
Taxable	0.3			0.7			1.0
Total Investment Securities	0.3			2.3			2.6
Loans Held for Sale	(0.4		)	0.1			(0.3		)
Loans and Leases
Commercial and Industrial	0.5			1.0			1.5
Commercial Mortgage	2.7			1.5			4.2
Construction	0.1			0.2			0.3
Commercial Lease Financing	0.1			(0.1		)	—
Residential Mortgage	2.4			(1.0		)	1.4
Home Equity	2.3			0.2			2.5
Automobile	0.9			(0.5		)	0.4
Other 2	0.9			0.3			1.2
Total Loans and Leases	9.9			1.6			11.5
Other	—			0.1			0.1
Total Change in Interest Income	9.8			5.0			14.8
Change in Interest Expense:
Interest-Bearing Deposits
Demand	0.1			0.2			0.3
Savings	—			0.7			0.7
Time	1.0			1.5			2.5
Total Interest-Bearing Deposits	1.1			2.4			3.5
Securities Sold Under Agreements to Repurchase	(0.5		)	(0.5		)	(1.0		)
Total Change in Interest Expense	0.6			1.9			2.5
Change in Net Interest Income	$	9.2		$	3.1		$	12.3
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, 2017
	Compared to September 30, 2016
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	(0.4	)	$	1.6		$	1.2
Investment Securities
Available-for-Sale
Taxable	0.9			2.8			3.7
Non-Taxable	(1.1		)	0.5			(0.6		)
Held-to-Maturity
Taxable	(0.3		)	0.5			0.2
Non-Taxable	(0.1		)	(0.1		)	(0.2		)
Total Investment Securities	(0.6		)	3.7			3.1
Loans Held for Sale	(0.2		)	0.1			(0.1		)
Loans and Leases
Commercial and Industrial	2.3			0.1			2.4
Commercial Mortgage	6.9			1.1			8.0
Construction	1.4			0.3			1.7
Commercial Lease Financing	0.2			(0.4		)	(0.2		)
Residential Mortgage	7.8			(4.0		)	3.8
Home Equity	7.1			(0.2		)	6.9
Automobile	2.6			(0.9		)	1.7
Other 2	2.1			0.7			2.8
Total Loans and Leases	30.4			(3.3		)	27.1
Other	—			0.2			0.2
Total Change in Interest Income	29.2			2.3			31.5
Change in Interest Expense:
Interest-Bearing Deposits
Demand	0.1			0.5			0.6
Savings	0.1			1.2			1.3
Time	1.5			2.8			4.3
Total Interest-Bearing Deposits	1.7			4.5			6.2
Short-Term Borrowings	—			0.1			0.1
Securities Sold Under Agreements to Repurchase	(2.3		)	(0.8		)	(3.1		)
Other Debt	0.3			(0.1		)	0.2
Total Change in Interest Expense	(0.3		)	3.7			3.4
Change in Net Interest Income	$	29.5		$	(1.4	)	$	28.1
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits									Table 9
	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
(dollars in thousands)	2017		2017		2016		2017		2016
Salaries	$	31,224	$	30,553	$	29,401	$	91,202	$	87,339
Incentive Compensation	4,857		5,125		5,743		15,756		17,625
Share-Based Compensation	1,962		2,879		2,968		7,144		8,024
Commission Expense	1,439		1,791		2,051		5,066		5,559
Retirement and Other Benefits	4,279		4,159		3,866		13,479		12,912
Payroll Taxes	2,353		2,427		2,224		8,724		8,089
Medical, Dental, and Life Insurance	3,444		3,136		3,366		9,859		10,130
Separation Expense	2,068		43		106		2,111		850
Total Salaries and Benefits	$	51,626	$	50,113	$	49,725	$	153,341	$	150,528

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)		2017		2017		2017		2016		2016
Commercial
	Commercial and Industrial	$	1,252,238	$	1,241,953	$	1,250,006	$	1,249,791	$	1,217,849
	Commercial Mortgage	2,050,998		2,009,886		1,909,064		1,889,551		1,807,190
	Construction	232,487		248,030		262,660		270,018		263,079
	Lease Financing	204,240		205,043		208,765		208,332		201,436
Total Commercial		3,739,963		3,704,912		3,630,495		3,617,692		3,489,554
Consumer
	Residential Mortgage	3,366,634		3,317,179		3,224,206		3,163,073		3,098,936
	Home Equity	1,528,353		1,473,123		1,411,489		1,334,163		1,295,993
	Automobile	506,102		484,092		468,078		454,333		437,659
	Other 1	432,904		408,307		379,541		380,524		371,955
Total Consumer		5,833,993		5,682,701		5,483,314		5,332,093		5,204,543
Total Loans and Leases		$	9,573,956	$	9,387,613	$	9,113,809	$	8,949,785	$	8,694,097
Deposits
		September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)		2017		2017		2017		2016		2016
Consumer		$	7,303,546	$	7,278,536	$	7,196,781	$	6,997,482	$	6,781,371
Commercial		6,091,800		5,903,639		6,051,721		6,110,189		5,751,184
Public and Other		1,652,814		1,602,474		1,228,031		1,212,569		1,275,810
Total Deposits		$	15,048,160	$	14,784,649	$	14,476,533	$	14,320,240	$	13,808,365
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 31,			March 31,			December 31,			September 30,
(dollars in thousands)			2017			2017			2017			2016			2016
Non-Performing Assets
Non-Accrual Loans and Leases
	Commercial
		Commercial and Industrial	$	901		$	175		$	228		$	151		$	201
		Commercial Mortgage	1,425			1,460			973			997			1,023
	Total Commercial		2,326			1,635			1,201			1,148			1,224
	Consumer
		Residential Mortgage	9,188			9,337			11,756			13,780			12,735
		Home Equity	4,128			3,405			3,517			3,147			2,966
	Total Consumer		13,316			12,742			15,273			16,927			15,701
Total Non-Accrual Loans and Leases			15,642			14,377			16,474			18,075			16,925
Foreclosed Real Estate			1,393			1,991			2,529			1,686			1,747
Total Non-Performing Assets			$	17,035		$	16,368		$	19,003		$	19,761		$	18,672
Accruing Loans and Leases Past Due 90 Days or More
Commercial
	Commercial and Industrial		$	5		$	—		$	—		$	—		$	—
Total Commercial			5			—			—			—			—
Consumer
	Residential Mortgage		2,933			2,269			2,313			3,127			2,583
	Home Equity		1,392			2,343			1,133			1,457			1,210
	Automobile		806			539			673			894			578
	Other 1		1,528			1,859			1,738			1,592			1,273
Total Consumer			6,659			7,010			5,857			7,070			5,644
Total Accruing Loans and Leases Past Due 90 Days or More			$	6,664		$	7,010		$	5,857		$	7,070		$	5,644
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More			$	55,038		$	53,158		$	52,965		$	52,208		$	52,095
Total Loans and Leases			$	9,573,956		$	9,387,613		$	9,113,809		$	8,949,785		$	8,694,097
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.16		%	0.15		%	0.18		%	0.20		%	0.19		%
Ratio of Non-Performing Assets to Total Loans and Leases
	and Foreclosed Real Estate		0.18		%	0.17		%	0.21		%	0.22		%	0.21		%
Ratio of Commercial Non-Performing Assets to Total Commercial
	Loans and Leases and Commercial Foreclosed Real Estate		0.06		%	0.04		%	0.03		%	0.03		%	0.04		%
Ratio of Consumer Non-Performing Assets to Total Consumer
	Loans and Leases and Consumer Foreclosed Real Estate		0.25		%	0.26		%	0.32		%	0.35		%	0.34		%
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		0.25		%	0.25		%	0.27		%	0.30		%	0.28		%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter			$	16,368		$	19,003		$	19,761		$	18,672		$	16,280
Additions			2,212			1,572			1,221			2,142			3,730
Reductions
	Payments		(199		)	(497		)	(1,017		)	(252		)	(501		)
	Return to Accrual Status		(305		)	(1,370		)	(645		)	(653		)	(701		)
	Sales of Foreclosed Real Estate		(951		)	(1,883		)	—			(61		)	—
	Charge-offs/Write-downs		(90		)	(457		)	(317		)	(87		)	(136		)
Total Reductions			(1,545		)	(4,207		)	(1,979		)	(1,053		)	(1,338		)
Balance at End of Quarter			$	17,035		$	16,368		$	19,003		$	19,761		$	18,672
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)			2017			2017			2016			2017			2016
Balance at Beginning of Period			$	113,175		$	111,636		$	110,504		$	110,845		$	108,952
Loans and Leases Charged-Off
	Commercial
		Commercial and Industrial	(611		)	(124		)	(209		)	(909		)	(670		)
	Consumer
		Residential Mortgage	(36		)	(506		)	(104		)	(725		)	(388		)
		Home Equity	(129		)	(282		)	(222		)	(774		)	(848		)
		Automobile	(1,921		)	(1,512		)	(1,703		)	(5,723		)	(4,635		)
		Other 1	(3,521		)	(3,063		)	(2,678		)	(9,278		)	(7,017		)
Total Loans and Leases Charged-Off			(6,218		)	(5,487		)	(4,916		)	(17,409		)	(13,558		)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
		Commercial and Industrial	597			265			282			1,198			7,552
		Commercial Mortgage	—			—			14			—			42
		Construction	—			—			—			—			23
		Lease Financing	1			1			—			2			2
	Consumer
		Residential Mortgage	89			264			517			457			997
		Home Equity	837			838			618			2,183			1,453
		Automobile	692			607			615			1,919			1,748
		Other 1	530			551			471			1,608			1,394
Total Recoveries on Loans and Leases Previously Charged-Off			2,746			2,526			2,517			7,367			13,211
Net Loans and Leases Charged-Off			(3,472		)	(2,961		)	(2,399		)	(10,042		)	(347		)
Provision for Credit Losses			4,000			4,250			2,500			12,650			1,500
Provision for Unfunded Commitments			—			250			—			250			500
Balance at End of Period 2			$	113,703		$	113,175		$	110,605		$	113,703		$	110,605
Components
Allowance for Loan and Lease Losses			$	106,881		$	106,353		$	104,033		$	106,881		$	104,033
Reserve for Unfunded Commitments			6,822			6,822			6,572			6,822			6,572
Total Reserve for Credit Losses			$	113,703		$	113,175		$	110,605		$	113,703		$	110,605
Average Loans and Leases Outstanding			$	9,451,972		$	9,217,779		$	8,483,588		$	9,231,615		$	8,210,596
Ratio of Net Loans and Leases Charged-Off to
	Average Loans and Leases Outstanding (annualized)		0.15		%	0.13		%	0.11		%	0.15		%	0.01		%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding			1.12		%	1.13		%	1.20		%	1.12		%	1.20		%
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
							Investment
							Services
	Retail			Commercial			Private			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Banking			and Other			Total
Three Months Ended September 30, 2017
Net Interest Income	$	67,128		$	43,438		$	7,321		$	(1,570	)	$	116,317
Provision for Credit Losses	3,512			(35		)	(5		)	528			4,000
Net Interest Income After Provision for Credit Losses	63,616			43,473			7,326			(2,098		)	112,317
Noninterest Income	21,287			5,137			13,593			2,393			42,410
Noninterest Expense	(51,507		)	(17,721		)	(14,925		)	(4,445		)	(88,598		)
Income Before Provision for Income Taxes	33,396			30,889			5,994			(4,150		)	66,129
Provision for Income Taxes	(11,908		)	(10,891		)	(2,218		)	4,769			(20,248		)
Net Income	$	21,488		$	19,998		$	3,776		$	619		$	45,881
Total Assets as of September 30, 2017	$	5,758,799		$	3,695,606		$	305,015		$	7,508,882		$	17,268,302
Three Months Ended September 30, 2016
Net Interest Income	$	61,747		$	38,613		$	6,029		$	(2,477	)	$	103,912
Provision for Credit Losses	2,574			(168		)	(7		)	101			2,500
Net Interest Income After Provision for Credit Losses	59,173			38,781			6,036			(2,578		)	101,412
Noninterest Income	24,786			6,977			13,662			2,689			48,114
Noninterest Expense	(51,892		)	(17,449		)	(14,579		)	(3,612		)	(87,532		)
Income Before Provision for Income Taxes	32,067			28,309			5,119			(3,501		)	61,994
Provision for Income Taxes	(11,329		)	(10,073		)	(1,894		)	4,795			(18,501		)
Net Income	$	20,738		$	18,236		$	3,225		$	1,294		$	43,493
Total Assets as of September 30, 2016	$	5,206,442		$	3,428,424		$	290,207		$	7,089,570		$	16,014,643

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information													Table 13b
							Investment
							Services
	Retail			Commercial			Private			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Banking			and Other			Total
Nine Months Ended September 30, 2017
Net Interest Income	$	198,633		$	127,106		$	20,685		$	(7,956	)	$	338,468
Provision for Credit Losses	10,413			(355		)	(16		)	2,608			12,650
Net Interest Income After Provision for Credit Losses	188,220			127,461			20,701			(10,564		)	325,818
Noninterest Income	64,132			16,451			43,389			19,590			143,562
Noninterest Expense	(155,786		)	(54,483		)	(45,692		)	(9,394		)	(265,355		)
Income Before Provision for Income Taxes	96,566			89,429			18,398			(368		)	204,025
Provision for Income Taxes	(34,323		)	(31,472		)	(6,807		)	10,296			(62,306		)
Net Income	$	62,243		$	57,957		$	11,591		$	9,928		$	141,719
Total Assets as of September 30, 2017	$	5,758,799		$	3,695,606		$	305,015		$	7,508,882		$	17,268,302
Nine Months Ended September 30, 2016
Net Interest Income	$	179,798		$	115,112		$	18,518		$	(2,942	)	$	310,486
Provision for Credit Losses	7,415			(7,052		)	(18		)	1,155			1,500
Net Interest Income After Provision for Credit Losses	172,383			122,164			18,536			(4,097		)	308,986
Noninterest Income	67,364			21,015			43,632			18,829			150,840
Noninterest Expense	(155,391		)	(52,479		)	(44,786		)	(8,333		)	(260,989		)
Income Before Provision for Income Taxes	84,356			90,700			17,382			6,399			198,837
Provision for Income Taxes	(29,958		)	(32,337		)	(6,431		)	7,837			(60,889		)
Net Income	$	54,398		$	58,363		$	10,951		$	14,236		$	137,948
Total Assets as of September 30, 2016	$	5,206,442		$	3,428,424		$	290,207		$	7,089,570		$	16,014,643

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)	2017				2017				2017			2016				2016
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	94,621			$	90,909			$	87,937		$	86,532			$	83,489
Income on Investment Securities
Available-for-Sale	11,987				11,835				11,084			10,244				10,313
Held-to-Maturity	20,334				19,918				19,706			19,213				19,315
Deposits	5				2				5			2				1
Funds Sold	1,579				696				890			795				695
Other	235				208				230			281				166
Total Interest Income	128,761				123,568				119,852			117,067				113,979
Interest Expense
Deposits	6,663				4,998				3,691			3,448				3,232
Securities Sold Under Agreements to Repurchase	4,664				5,079				5,185			5,406				5,713
Funds Purchased	—				39				3			3				3
Short-Term Borrowings	—				64				—			—				—
Other Debt	1,117				1,109				1,101			1,117				1,119
Total Interest Expense	12,444				11,289				9,980			9,974				10,067
Net Interest Income	116,317				112,279				109,872			107,093				103,912
Provision for Credit Losses	4,000				4,250				4,400			3,250				2,500
Net Interest Income After Provision for Credit Losses	112,317				108,029				105,472			103,843				101,412
Noninterest Income
Trust and Asset Management	11,050				11,796				11,479			11,232				11,008
Mortgage Banking	3,237				3,819				3,300			6,256				6,362
Service Charges on Deposit Accounts	8,188				8,009				8,325			8,537				8,524
Fees, Exchange, and Other Service Charges	13,764				13,965				13,332			13,731				14,023
Investment Securities Gains (Losses), Net	(566		)		(520		)		12,133			(337		)		(328		)
Annuity and Insurance	1,429				2,161				1,995			1,457				1,653
Bank-Owned Life Insurance	1,861				1,550				1,497			1,551				1,911
Other	3,447				4,456				3,855			4,076				4,961
Total Noninterest Income	42,410				45,236				55,916			46,503				48,114
Noninterest Expense
Salaries and Benefits	51,626				50,113				51,602			50,622				49,725
Net Occupancy	7,727				8,131				8,168			7,581				8,510
Net Equipment	5,417				5,706				5,501			5,191				4,913
Data Processing	3,882				3,881				3,410			3,665				3,620
Professional Fees	3,044				2,592				2,779			2,990				2,396
FDIC Insurance	2,107				2,097				2,209			2,015				2,104
Other	14,795				15,669				14,899			17,525				16,264
Total Noninterest Expense	88,598				88,189				88,568			89,589				87,532
Income Before Provision for Income Taxes	66,129				65,076				72,820			60,757				61,994
Provision for Income Taxes	20,248				20,414				21,644			17,244				18,501
Net Income	$	45,881			$	44,662			$	51,176		$	43,513			$	43,493
Basic Earnings Per Share	$	1.09			$	1.05			$	1.21		$	1.03			$	1.02
Diluted Earnings Per Share	$	1.08			$	1.05			$	1.20		$	1.02			$	1.02
Balance Sheet Totals
Loans and Leases	$	9,573,956			$	9,387,613			$	9,113,809		$	8,949,785			$	8,694,097
Total Assets	17,268,302				16,981,292				16,664,215			16,492,367				16,014,643
Total Deposits	15,048,160				14,784,649				14,476,533			14,320,240				13,808,365
Total Shareholders' Equity	1,227,893				1,213,757				1,193,137			1,161,537				1,163,859
Performance Ratios
Return on Average Assets	1.07			%	1.09			%	1.26		%	1.07			%	1.09			%
Return on Average Shareholders' Equity	14.89				14.87				17.63			14.90				14.89
Efficiency Ratio 1	55.82				55.99				53.42			58.33				57.58
Net Interest Margin 2	2.92				2.92				2.89			2.83				2.80
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, 2017				December 31, 2016					December 31, 2015
Hawaii Economic Trends
State General Fund Revenues 1	$	4,357.2	4.5	%	$	6,215.4		3.6	%	$	5,998.6		8.4		%
General Excise and Use Tax Revenue 1	$	2,250.2	4.8	%	$	3,205.7		2.0	%	$	3,141.5		5.4		%
Jobs 2	672.4				671.7					658.8
								September 30,		December 31,
(spot rates)								2017		2016			2015
Unemployment 3
Statewide, seasonally adjusted								2.5	%	2.9		%	3.2		%
Oahu								2.3		2.4			2.7
Island of Hawaii								2.8		3.1			3.7
Maui								2.5		2.7			3.1
Kauai								2.3		2.8			3.5
					September 30,			December 31,
(percentage change, except months of inventory)					2017			2016		2015			2014
Housing Trends (Single Family Oahu) 4
Median Home Price					3.4		%	5.0	%	3.7		%	3.8		%
Home Sales Volume (units)					5.0		%	6.5	%	5.2		%	(0.8	)	%
Months of Inventory					2.4			2.5		2.6			2.6
					Monthly Visitor Arrivals,					Percentage Change
(in thousands)					Not Seasonally Adjusted					from Previous Year
Tourism 5
August 31, 2017								818.6					4.8
July 31, 2017								891.9					6.8
June 30, 2017								835.9					4.5
May 31, 2017								751.2					4.5
April 30, 2017								753.0					7.5
March 31, 2017								802.8					2.1
February 28, 2017								700.4					1.7
January 31, 2017								756.3					4.9
December 31, 2016								828.5					3.6
November 30, 2016								696.9					4.7
October 31, 2016								717.5					4.3
September 30, 2016								666.6					3.0
August 31, 2016								780.7					3.1
July 31, 2016								835.4					2.1
June 30, 2016								800.3					4.2
May 31, 2016								718.9					1.3
April 30, 2016								700.6					3.4
March 31, 2016								786.3					0.8
February 29, 2016								688.8					4.1
January 31, 2016								721.0					6.2
December 31, 2015								799.5					4.4
November 30, 2015								665.9					4.4
October 31, 2015								687.7					4.0
September 30, 2015								647.2					3.9
August 31, 2015								757.5					3.1
July 31, 2015								818.5					5.9
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	)
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.