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

Bank of Hawaii Corporation 2017 Financial Results

•2017 Earnings Reaches Record of $4.33 Per Diluted Share

•2017 Net Income $184.7 Million

•Diluted Earnings Per Share $1.01 for the Fourth Quarter of 2017

•Net Income $43.0 Million for the Fourth Quarter of 2017

FOR IMMEDIATE RELEASE

HONOLULU, HI (January 22, 2018) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $4.33 for the full year of 2017, up 2.4 percent from diluted earnings per share of $4.23 in 2016. Net income for the year was $184.7 million, up $3.2 million or 1.8 percent from net income of $181.5 million in the previous year. The financial results for 2017 included an additional income tax expense of $3.6 million as a result of the Tax Cuts and Jobs Act, a tax reform bill, signed into law during December 2017. The return on average assets for the full year of 2017 was 1.10 percent compared with 1.15 percent in 2016. The return on average equity for the full year of 2017 was 15.27 percent compared with 15.79 percent in 2016.

“Bank of Hawaii finished 2017 with solid financial performance," said Peter Ho, Chairman, President and CEO. “During the year our loan and deposit balances continued to grow and our net interest margin expanded due to increased rates and the positive remixing of our balance sheet. Expenses were well controlled and our asset quality, capital and liquidity all remained strong.”

Diluted earnings per share were $1.01 for the fourth quarter of 2017, down from $1.08 in the third quarter of 2017 and down from $1.02 in the fourth quarter of 2016. Net income for the fourth quarter of 2017 was $43.0 million, down from $45.9 million in the previous quarter and down from $43.5 million in the same quarter last year. Net income in the fourth quarter of 2017 included the previously mentioned additional income tax expense of $3.6 million. The return on average assets for the fourth quarter of 2017 was 1.00 percent, compared with 1.07 percent in the third quarter of 2017 and 1.07 percent in the fourth quarter last year. The return on average equity for the fourth quarter of 2017 was 13.85 percent compared with 14.89 percent in the third quarter of 2017 and 14.90 percent in the fourth quarter last year.

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Bank of Hawaii Corporation 2017 Financial Results     Page 2

Financial Highlights

Net interest income, on a taxable-equivalent basis, was $469.1 million for the full year of 2017, an increase of $39.5 million from net interest income of $429.6 million in 2016. Net interest income, on a taxable-equivalent basis, for the fourth quarter of 2017 was $121.6 million, an increase of $2.4 million compared with net interest income of $119.2 million in the third quarter of 2017 and up $11.5 million compared with net interest income of $110.1 million in the fourth quarter last year. Analyses of changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin for the full year of 2017 was 2.93 percent, an increase of 10 basis points from the net interest margin of 2.83 percent in 2016. The net interest margin was 2.98 percent in the fourth quarter of 2017, an increase of 6 basis points from the third quarter of 2017 and 15 basis points from the fourth quarter last year.

The provision for credit losses for the full year of 2017 was $16.9 million compared with a provision for credit losses of $4.8 million in 2016. Provision expense in 2016 reflected a recovery of $6.6 million related to one commercial client in Guam. Results for the fourth quarter of 2017 included a provision for credit losses of $4.3 million compared with $4.0 million in the previous quarter and $3.3 million in the same quarter last year.

Noninterest income for the full year of 2017 was $185.4 million compared with noninterest income of $197.3 million 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 the sales of assets during 2016. Noninterest income was $41.9 million in the fourth quarter of 2017 compared with noninterest income of $42.4 million in the third quarter of 2017 and noninterest income of $46.5 million in the fourth quarter of 2016.

Noninterest expense for the full year of 2017 was $357.7 million compared with noninterest expense of $350.6 million in 2016. Noninterest expense in 2017 included one-time employee bonuses totaling $2.2 million, including payroll taxes. Noninterest expense in 2016 included net gains of $3.7 million on the disposition of real estate. Adjusted for these items, noninterest expense increased $1.2 million, or 0.3 percent in 2017 compared with the prior year. Noninterest expense was $92.3 million in the fourth quarter of 2017, including the one-time bonuses. Noninterest expense was $88.6 million in the third quarter of 2017 and included $2.1 million in severance which was partially offset by a reduction of $0.9 million in share-based compensation. Noninterest expense was $89.6 million in the fourth quarter of 2016 and included expenses of $1.3 million in compensation related to the significant increase in the stock price during the quarter which was partially offset by a net gain of $1.0 million on the sale of a branch building. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The efficiency ratio for the full year of 2017 was 55.66 percent compared with 57.01 percent in 2016. The efficiency ratio for the fourth quarter of 2017 was 57.49 percent compared with 55.82 percent in the previous quarter and 58.33 percent in the same quarter last year.

The effective tax rate for the full year of 2017 was 31.11 percent, which included the previously mentioned $3.6 million one-time adjustment related to the tax reform bill. Excluding this expense, the effective tax rate for the full year of 2017 was 29.78 percent compared with 30.10 percent for the full year of 2016. The effective tax rate for the fourth quarter of 2017 was 32.93 percent. Excluding the tax reform expense, the effective tax rate for the fourth quarter of 2017 was 27.37 percent compared with 30.62 percent in the previous quarter and 28.38 percent in the same quarter last year. The lower effective tax rate excluding the tax reform expense was primarily due to the release of a valuation allowance for the sale of low income housing investments.

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Bank of Hawaii Corporation 2017 Financial Results     Page 3

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services and Private Banking, 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 continued to remain strong during the fourth quarter of 2017. Total non-performing assets were $16.1 million at December 31, 2017 compared with $17.0 million at September 30, 2017 and $19.8 million at December 31, 2016. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.16 percent at December 31, 2017 compared with 0.18 percent at September 30, 2017 and 0.22 percent at December 31, 2016.

Accruing loans and leases past due 90 days or more were $7.1 million at December 31, 2017 compared with $6.7 million at September 30, 2017 and $7.1 million at December 31, 2016. Restructured loans and leases not included in non-accrual loans or accruing loans past due 90 days or more were $55.7 million at December 31, 2017 compared with $55.0 million at September 30, 2017 and $52.2 million at December 31, 2016. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net charge-offs for the full year of 2017 were $13.8 million or 0.15 percent of total average loans and leases compared with net charge-offs of $3.4 million or 0.04 percent of total average loans and leases in 2016. The lower charge-off rate during 2016 was largely due to the previously mentioned recovery of charged off loans to a commercial client in Guam. Net charge-offs during the fourth quarter of 2017 were $3.8 million or 0.15 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $5.8 million partially offset by recoveries of $2.1 million. Net charge-offs during the third quarter of 2017 were $3.5 million or 0.15 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $6.2 million and recoveries of $2.7 million. Net charge-offs during the fourth quarter of 2016 were $3.0 million or 0.14 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $5.0 million and recoveries of $1.9 million.

The allowance for loan and lease losses was $107.3 million at December 31, 2017, an increase from $106.9 million at September 30, 2017 and $104.3 million at December 31, 2016. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.10 percent at December 31, 2017, a decrease of 2 basis points from September 30, 2017 and 7 basis points from December 31, 2016. The decrease in the ratio of the allowance for loan and lease losses to total loans and leases outstanding is due to significant loan growth during the year and is commensurate with the Company’s strong asset quality and the Hawaii economy. The total reserve for unfunded commitments of $6.8 million at December 31, 2017 was unchanged from the prior quarter and up from at $6.6 million at December 31, 2016. Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets were $17.1 billion at December 31, 2017, a decrease of $179.3 million from total assets of $17.3 billion at September 30, 2017 and an increase of $596.7 million from total assets of $16.5 billion at December 31, 2016. Average total assets were $17.1 billion during the fourth quarter of 2017, an increase of $112.4 million compared with average total assets of $17.0 billion during the previous quarter and an increase of $871.7 million compared with average total assets of $16.2 billion during the same quarter last year.

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Bank of Hawaii Corporation 2017 Financial Results     Page 4

The investment securities portfolio was $6.2 billion at December 31, 2017, a decrease of $122.1 million from total securities of $6.3 billion at September 30, 2017 and up $142.1 million from total securities of $6.0 billion at December 31, 2016. The investment securities portfolio remains largely comprised of securities issued by U. S. government agencies and included $3.9 billion in securities held to maturity and $2.2 billion in securities available for sale at December 31, 2017. 

Total loans and leases increased to $9.8 billion at December 31, 2017, an increase of $223.0 million or 2.3 percent from total loans and leases of $9.6 billion at September 30, 2017 and up $847.2 million or 9.5 percent from total loans and leases of $8.9 billion at December 31, 2016. The commercial portfolio increased to $3.8 billion at the end of the fourth quarter of 2017, up 0.7 percent from commercial loans of $3.7 billion at the end of the third quarter of 2017 and up 4.1 percent from commercial loans of $3.6 billion at the end of the fourth quarter last year. Consumer loans grew to $6.0 billion at December 31, 2017, up 3.4 percent from consumer loans of $5.8 billion at the end of the third quarter of 2017 and up 13.1 percent from consumer loans of $5.3 billion at the end of the fourth quarter last year. Average total loans and leases were $9.7 billion during the fourth quarter of 2017, an increase of 2.5 percent from average loans and leases of $9.5 billion during the previous quarter and up 9.9 percent from average loans and leases of $8.8 billion during the same quarter last year. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $14.9 billion at December 31, 2017, down $164.2 million or 1.1 percent from total deposits of $15.0 billion at September 30, 2017 and up $563.7 million or 3.9 percent from total deposits of $14.3 billion at December 31, 2016. Consumer deposits increased to $7.5 billion at December 31, 2017, up $174.7 million or 2.4 percent from consumer deposits of $7.3 billion at the end of the third quarter of 2017 and up $480.7 million or 6.9 percent from $7.0 billion at the end of the fourth quarter last year. Growth remained strong in all consumer deposit categories. Commercial deposits were $6.0 billion at the end of the fourth quarter of 2017, down $118.0 million or 1.9 percent from $6.1 billion at the end of the third quarter of 2017 and down $136.4 million or 2.2 percent from $6.1 billion at the end of the fourth quarter last year. The decrease was largely due to reductions in escrow deposits related to construction projects that were completed during the year. Other deposits declined to $1.4 billion at December 31, 2017, down $220.8 million or 13.4 percent from $1.7 billion at September 30, 2017 and up $219.4 million or 18.1 percent from $1.2 billion at December 31, 2016. The decrease compared with the prior quarter was the result of a reduction in public time deposits due to increased pricing competition. Average total deposits were $14.8 billion in the fourth quarter of 2017, up from average total deposits of $14.7 billion in the previous quarter and up from average total deposits of $14.0 billion during the same quarter last year. Deposit balances are summarized in Tables 7a, 7b, and 10.

During the fourth quarter of 2017, the Company repurchased 128.6 thousand shares of common stock at a total cost of $10.6 million under its share repurchase program. The average cost was $82.60 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through December 31, 2017, the Company has repurchased 54.2 million shares and returned over $2.0 billion to shareholders at an average cost of $38.29 per share. Remaining buyback authority under the share repurchase program was $20.0 million at December 31, 2017. From January 2 through January 19, 2018 the Company repurchased an additional 19.5 thousand shares of common stock at an average cost of $86.75 per share repurchased.

Total shareholders’ equity was $1.23 billion at December 31, 2017, up slightly from September 30, 2017 and up from $1.16 billion at December 31, 2016. The Tier 1 Capital Ratio was 13.24 percent at December 31, 2017 compared with 13.27 percent at September 30, 2017 and 13.24 percent at December 31, 2016. The Tier 1 Leverage Ratio at December 31, 2017 was 7.26 percent compared with 7.24 percent at September 30, 2017 and 7.21 percent at December 31, 2016.

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Bank of Hawaii Corporation 2017 Financial Results     Page 5

The Company’s Board of Directors declared a quarterly cash dividend of $0.52 per share on the Company’s outstanding shares. The dividend will be payable on March 14, 2018 to shareholders of record at the close of business on February 28, 2018.

Hawaii Economy

General economic conditions in Hawaii remained healthy during 2017, led by continued strength in the tourism industry, low unemployment, rising real estate prices, and an active construction industry. For the first eleven months of 2017 total visitor arrivals increased 4.9 percent and visitor spending increased 6.6 percent compared to the same period in 2016. The statewide seasonally-adjusted unemployment rate remains low at 2.0 percent in November 2017 compared with 4.1 percent nationally.

Real estate prices on Oahu continue to reach new records. The volume of single-family home sales on Oahu increased 6.3 percent in 2017 and the volume of condominium sales increased 6.9 percent compared with sales in 2016.  The median price of single-family homes on Oahu increased 2.7 percent and the median price of condominiums increased 3.8 percent compared with 2016.  As of December 31, 2017, months of inventory of single-family homes and condominiums on Oahu declined to 2.1 months and 2.3 months, respectively.  More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its 2017 financial results today at 8:00 a.m. Hawaii Time (1:00 p.m. Eastern Time). The call will be accessible via teleconference and via the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. The toll-free number is 1 (844) 543-5235 in the United States and Canada and 1 (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, January 22, 2018. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the pass code 3667149 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 do not promise to update forward-looking statements to reflect later events or circumstances

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

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Bank of Hawaii Corporation and Subsidiaries
Financial Highlights													Table 1
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
(dollars in thousands, except per share amounts)	2017			2017			2016			2017			2016
For the Period:
Operating Results
Net Interest Income	$	118,770		$	116,317		$	107,093		$	457,238		$	417,579
Provision for Credit Losses	4,250			4,000			3,250			16,900			4,750
Total Noninterest Income	41,855			42,410			46,503			185,417			197,343
Total Noninterest Expense	92,336			88,598			89,589			357,691			350,578
Net Income	42,953			45,881			43,513			184,672			181,461
Basic Earnings Per Share	1.02			1.09			1.03			4.37			4.26
Diluted Earnings Per Share	1.01			1.08			1.02			4.33			4.23
Dividends Declared Per Share	0.52			0.52			0.48			2.04			1.89
Performance Ratios
Return on Average Assets	1.00		%	1.07		%	1.07		%	1.10		%	1.15		%
Return on Average Shareholders' Equity	13.85			14.89			14.90			15.27			15.79
Efficiency Ratio 1	57.49			55.82			58.33			55.66			57.01
Net Interest Margin 2	2.98			2.92			2.83			2.93			2.83
Dividend Payout Ratio 3	50.98			47.71			46.60			46.68			44.37
Average Shareholders' Equity to Average Assets	7.20			7.21			7.17			7.22			7.26
Average Balances
Average Loans and Leases	$	9,688,710		$	9,451,972		$	8,813,755		$	9,346,828		$	8,362,210
Average Assets	17,084,596			16,972,202			16,212,940			16,749,230			15,825,381
Average Deposits	14,813,218			14,727,469			13,997,318			14,505,423			13,619,476
Average Shareholders' Equity	1,230,564			1,222,885			1,161,967			1,209,087			1,149,335
Per Share of Common Stock
Book Value	$	29.05		$	28.88		$	27.24		$	29.05		$	27.24
Tangible Book Value	28.31			28.14			26.50			28.31			26.50
Market Value
Closing	85.70			83.36			88.69			85.70			88.69
High	88.38			86.19			89.72			90.80			89.72
Low	77.71			74.72			71.73			74.72			54.55
							December 31,			September 30,			December 31,
							2017			2017			2016
As of Period End:
Balance Sheet Totals
Loans and Leases							$	9,796,947		$	9,573,956		$	8,949,785
Total Assets							17,089,052			17,268,302			16,492,367
Total Deposits							14,883,968			15,048,160			14,320,240
Other Debt							260,716			267,887			267,938
Total Shareholders' Equity							1,231,868			1,227,893			1,161,537
Asset Quality
Non-Performing Assets							$	16,120		$	17,035		$	19,761
Allowance for Loan and Lease Losses							107,346			106,881			104,273
Allowance to Loans and Leases Outstanding							1.10		%	1.12		%	1.17		%
Capital Ratios
Common Equity Tier 1 Capital Ratio							13.24		%	13.27		%	13.24		%
Tier 1 Capital Ratio							13.24			13.27			13.24
Total Capital Ratio							14.46			14.51			14.49
Tier 1 Leverage Ratio							7.26			7.24			7.21
Total Shareholders' Equity to Total Assets							7.21			7.11			7.04
Tangible Common Equity to Tangible Assets 4							7.04			6.94			6.86
Tangible Common Equity to Risk-Weighted Assets 4							12.84			12.96			12.81
Non-Financial Data
Full-Time Equivalent Employees							2,132			2,120			2,122
Branches							69			69			69
ATMs							387			388			449
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
		December 31,			September 30,			December 31,
(dollars in thousands)		2017			2017			2016
Total Shareholders' Equity		$	1,231,868		$	1,227,893		$	1,161,537
Less:	Goodwill	31,517			31,517			31,517
Tangible Common Equity		$	1,200,351		$	1,196,376		$	1,130,020
Total Assets		$	17,089,052		$	17,268,302		$	16,492,367
Less:	Goodwill	31,517			31,517			31,517
Tangible Assets		$	17,057,535		$	17,236,785		$	16,460,850
Risk-Weighted Assets, determined in accordance
with prescribed regulatory requirements1		$	9,348,296		$	9,234,050		$	8,823,485
Total Shareholders' Equity to Total Assets		7.21		%	7.11		%	7.04		%
Tangible Common Equity to Tangible Assets (Non-GAAP)		7.04		%	6.94		%	6.86		%
Tier 1 Capital Ratio		13.24		%	13.27		%	13.24		%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)		12.84		%	12.96		%	12.81		%
1Risk-weighted assets as of September 30,2017 was revised from $9,233,969.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income												Table 3
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
(dollars in thousands, except per share amounts)	2017			2017			2016			2017		2016
Interest Income
Interest and Fees on Loans and Leases	$	96,974		$	94,621		$	86,532		$	370,441	$	333,239
Income on Investment Securities
Available-for-Sale	11,866			11,987			10,244			46,772		41,892
Held-to-Maturity	21,782			20,334			19,213			81,740		79,087
Deposits	3			5			2			15		9
Funds Sold	717			1,579			795			3,882		2,861
Other	271			235			281			944		812
Total Interest Income	131,613			128,761			117,067			503,794		457,900
Interest Expense
Deposits	6,980			6,663			3,448			22,332		12,647
Securities Sold Under Agreements to Repurchase	4,664			4,664			5,406			19,592		23,406
Funds Purchased	81			—			3			123		12
Short-Term Borrowings	—			—			—			64		—
Other Debt	1,118			1,117			1,117			4,445		4,256
Total Interest Expense	12,843			12,444			9,974			46,556		40,321
Net Interest Income	118,770			116,317			107,093			457,238		417,579
Provision for Credit Losses	4,250			4,000			3,250			16,900		4,750
Net Interest Income After Provision for Credit Losses	114,520			112,317			103,843			440,338		412,829
Noninterest Income
Trust and Asset Management	11,105			11,050			11,232			45,430		46,203
Mortgage Banking	2,593			3,237			6,256			12,949		19,895
Service Charges on Deposit Accounts	8,053			8,188			8,537			32,575		33,654
Fees, Exchange, and Other Service Charges	13,784			13,764			13,731			54,845		55,176
Investment Securities Gains (Losses), Net	(617		)	(566		)	(337		)	10,430		10,203
Annuity and Insurance	1,273			1,429			1,457			6,858		7,017
Bank-Owned Life Insurance	1,609			1,861			1,551			6,517		6,561
Other	4,055			3,447			4,076			15,813		18,634
Total Noninterest Income	41,855			42,410			46,503			185,417		197,343
Noninterest Expense
Salaries and Benefits	52,195			51,626			50,622			205,536		201,150
Net Occupancy	8,510			7,727			7,581			32,536		30,252
Net Equipment	5,454			5,417			5,191			22,078		20,578
Data Processing	4,310			3,882			3,665			15,483		15,208
Professional Fees	3,266			3,044			2,990			11,681		10,072
FDIC Insurance	2,253			2,107			2,015			8,666		8,615
Other	16,348			14,795			17,525			61,711		64,703
Total Noninterest Expense	92,336			88,598			89,589			357,691		350,578
Income Before Provision for Income Taxes	64,039			66,129			60,757			268,064		259,594
Provision for Income Taxes	21,086			20,248			17,244			83,392		78,133
Net Income	$	42,953		$	45,881		$	43,513		$	184,672	$	181,461
Basic Earnings Per Share	$	1.02		$	1.09		$	1.03		$	4.37	$	4.26
Diluted Earnings Per Share	$	1.01		$	1.08		$	1.02		$	4.33	$	4.23
Dividends Declared Per Share	$	0.52		$	0.52		$	0.48		$	2.04	$	1.89
Basic Weighted Average Shares	42,116,452			42,251,541			42,386,480			42,280,931		42,644,100
Diluted Weighted Average Shares	42,450,191			42,565,364			42,672,470			42,607,057		42,879,783

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income													Table 4
		Three Months Ended								Year Ended
		December 31,			September 30,		December 31,			December 31,
(dollars in thousands)		2017			2017		2016			2017			2016
Net Income		$	42,953		$	45,881	$	43,513		$	184,672		$	181,461
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities	(10,430		)	444		(18,641		)	(1,986		)	(10,318		)
	Defined Benefit Plans	738			146		(453		)	1,177			(31		)
Other Comprehensive Income (Loss)		(9,692		)	590		(19,094		)	(809		)	(10,349		)
Comprehensive Income		$	33,261		$	46,471	$	24,419		$	183,863		$	171,112

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition							Table 5
	December 31,			September 30,			December 31,
(dollars in thousands)	2017			2017			2016
Assets
Interest-Bearing Deposits in Other Banks	$	3,421		$	3,161		$	3,187
Funds Sold	181,413			512,868			707,343
Investment Securities
Available-for-Sale	2,232,979			2,322,668			2,186,041
Held-to-Maturity (Fair Value of $3,894,121; $3,960,956; and $3,827,527)	3,928,170			3,960,598			3,832,997
Loans Held for Sale	19,231			9,752			62,499
Loans and Leases	9,796,947			9,573,956			8,949,785
Allowance for Loan and Lease Losses	(107,346		)	(106,881		)	(104,273		)
Net Loans and Leases	9,689,601			9,467,075			8,845,512
Total Earning Assets	16,054,815			16,276,122			15,637,579
Cash and Due from Banks	263,017			245,487			169,077
Premises and Equipment, Net	130,926			125,162			113,505
Accrued Interest Receivable	50,485			51,526			46,444
Foreclosed Real Estate	1,040			1,393			1,686
Mortgage Servicing Rights	24,622			24,436			23,663
Goodwill	31,517			31,517			31,517
Bank-Owned Life Insurance	280,034			278,425			274,188
Other Assets	252,596			234,234			194,708
Total Assets	$	17,089,052		$	17,268,302		$	16,492,367
Liabilities
Deposits
Noninterest-Bearing Demand	$	4,724,300		$	4,825,643		$	4,772,727
Interest-Bearing Demand	3,082,563			2,896,559			2,934,107
Savings	5,389,013			5,363,866			5,395,699
Time	1,688,092			1,962,092			1,217,707
Total Deposits	14,883,968			15,048,160			14,320,240
Funds Purchased	—			—			9,616
Securities Sold Under Agreements to Repurchase	505,293			505,293			523,378
Other Debt	260,716			267,887			267,938
Retirement Benefits Payable	37,312			38,308			48,451
Accrued Interest Payable	6,946			6,717			5,334
Taxes Payable and Deferred Taxes	24,009			31,360			21,674
Other Liabilities	138,940			142,684			134,199
Total Liabilities	15,857,184			16,040,409			15,330,830
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2017 - 57,959,074 / 42,401,443;
September 30, 2017 - 57,958,200 / 42,513,348;
and December 31, 2016 - 57,856,672 / 42,635,978)	576			576			576
Capital Surplus	561,161			558,530			551,628
Accumulated Other Comprehensive Loss	(34,715		)	(25,023		)	(33,906		)
Retained Earnings	1,512,218			1,491,830			1,415,440
Treasury Stock, at Cost (Shares: December 31, 2017 - 15,557,631;
September 30, 2017 - 15,444,852; and December 31, 2016 - 15,220,694)	(807,372		)	(798,020		)	(772,201		)
Total Shareholders' Equity	1,231,868			1,227,893			1,161,537
Total Liabilities and Shareholders' Equity	$	17,089,052		$	17,268,302		$	16,492,367

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, 2015		43,282,153		$	575	$	542,041	$	(23,557	)	$	1,316,260		$	(719,059	)	$	1,116,260
Net Income		—		—		—		—			181,461			—			181,461
Other Comprehensive Loss		—		—		—		(10,349		)	—			—			(10,349		)
Share-Based Compensation		—		—		6,786		—			—			—			6,786
Common Stock Issued under Purchase and Equity
	Compensation Plans and Related Tax Benefits	259,985		1		2,801		—			(1,124		)	8,665			10,343
Common Stock Repurchased		(906,160	)	—		—		—			—			(61,807		)	(61,807		)
Cash Dividends Declared ($1.89 per share)		—		—		—		—			(81,157		)	—			(81,157		)
Balance as of December 31, 2016		42,635,978		$	576	$	551,628	$	(33,906	)	$	1,415,440		$	(772,201	)	$	1,161,537
Net Income		—		—		—		—			184,672			—			184,672
Other Comprehensive Loss		—		—		—		(809		)	—			—			(809		)
Share-Based Compensation		—		—		7,369		—			—			—			7,369
Common Stock Issued under Purchase and Equity
	Compensation Plans and Related Tax Benefits	337,091		—		2,164		—			(828		)	11,905			13,241
Common Stock Repurchased		(571,626	)	—		—		—			—			(47,076		)	(47,076		)
Cash Dividends Declared ($2.04 per share)		—		—		—		—			(87,066		)	—			(87,066		)
Balance as of December 31, 2017		42,401,443		$	576	$	561,161	$	(34,715	)	$	1,512,218		$	(807,372	)	$	1,231,868

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
		December 31, 2017						September 30, 2017						December 31, 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		$	3.2	$	—	0.46	%	$	3.5	$	—	0.48	%	$	4.0	$	—	0.10	%
Funds Sold		221.0		0.7		1.27		575.2		1.6		1.07		622.8		0.8		0.50
Investment Securities
	Available-for-Sale
	Taxable	1,669.7		8.5		2.05		1,658.2		8.6		2.08		1,533.8		6.7		1.76
	Non-Taxable	619.0		5.1		3.29		636.7		5.2		3.26		668.7		5.4		3.21
	Held-to-Maturity
	Taxable	3,775.6		20.3		2.15		3,631.1		18.8		2.07		3,579.1		17.7		1.97
	Non-Taxable	239.0		2.3		3.87		239.9		2.4		3.87		242.7		2.4		3.89
Total Investment Securities		6,303.3		36.2		2.30		6,165.9		35.0		2.27		6,024.3		32.2		2.13
Loans Held for Sale		15.9		0.2		4.02		20.6		0.2		3.88		39.1		0.3		3.61
Loans and Leases 1
	Commercial and Industrial	1,284.5		11.7		3.62		1,251.5		11.3		3.58		1,223.6		10.0		3.25
	Commercial Mortgage	2,063.2		20.2		3.89		2,015.0		19.6		3.87		1,833.8		17.0		3.68
	Construction	213.8		2.6		4.78		241.0		2.9		4.73		276.0		3.0		4.36
	Commercial Lease Financing	202.6		1.3		2.56		204.7		1.2		2.30		204.0		1.1		2.17
	Residential Mortgage	3,420.0		32.6		3.81		3,333.3		31.8		3.82		3,139.4		30.6		3.90
	Home Equity	1,552.4		14.3		3.65		1,502.9		13.8		3.65		1,317.1		11.7		3.54
	Automobile	516.3		5.8		4.43		493.2		5.9		4.71		446.0		5.8		5.14
	Other 2	435.9		8.5		7.80		410.4		8.2		7.98		373.9		7.3		7.76
Total Loans and Leases		9,688.7		97.0		3.98		9,452.0		94.7		3.99		8,813.8		86.5		3.91
Other		40.6		0.3		2.67		40.2		0.2		2.34		40.1		0.3		2.80
Total Earning Assets 3		16,272.7		134.4		3.29		16,257.4		131.7		3.23		15,544.1		120.1		3.08
Cash and Due from Banks		229.5						151.2						131.5
Other Assets		582.4						563.6						537.3
Total Assets		$	17,084.6					$	16,972.2					$	16,212.9
Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,877.7	0.5		0.06		$	2,880.0	0.5		0.07		$	2,760.5	0.3		0.04
	Savings	5,396.9		1.9		0.14		5,374.4		1.8		0.13		5,339.5		1.2		0.09
	Time	1,767.9		4.6		1.03		1,788.2		4.4		0.97		1,322.7		2.0		0.60
Total Interest-Bearing Deposits		10,042.5		7.0		0.28		10,042.6		6.7		0.26		9,422.7		3.5		0.15
Short-Term Borrowings		25.0		0.1		1.27		—		—		—		9.6		—		0.15
Securities Sold Under Agreements to Repurchase		505.3		4.6		3.61		505.3		4.7		3.61		533.7		5.4		3.96
Other Debt		267.6		1.1		1.66		267.9		1.1		1.66		267.9		1.1		1.66
Total Interest-Bearing Liabilities		10,840.4		12.8		0.47		10,815.8		12.5		0.45		10,233.9		10.0		0.38
Net Interest Income				$	121.6					$	119.2					$	110.1
	Interest Rate Spread					2.82	%					2.78	%					2.70	%
	Net Interest Margin					2.98	%					2.92	%					2.83	%
Noninterest-Bearing Demand Deposits		4,770.7						4,684.9						4,574.6
Other Liabilities		242.9						248.6						242.4
Shareholders' Equity		1,230.6						1,222.9						1,162.0
Total Liabilities and Shareholders' Equity		$	17,084.6					$	16,972.2					$	16,212.9
1  Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
2  Comprised of other consumer revolving credit, installment, and consumer lease financing.
3  Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $2,808,000, $2,920,000 and $3,034,000 for the three months
	ended December 31, 2017, September 30, 2017, and December 31, 2016, respectively.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis												Table 7b
		Year Ended						Year Ended
		December 31, 2017						December 31, 2016
		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	3.4	$	—	0.45	%	$	4.1	$	—	0.22	%
Funds Sold		423.0		3.9		0.92		595.9		2.8		0.48
Investment Securities
	Available-for-Sale
	Taxable	1,659.3		33.1		2.00		1,579.1		27.7		1.75
	Non-Taxable	643.7		21.0		3.27		690.6		21.9		3.17
	Held-to-Maturity
	Taxable	3,648.6		75.7		2.07		3,615.2		72.9		2.02
	Non-Taxable	240.4		9.3		3.88		244.1		9.5		3.90
Total Investment Securities		6,192.0		139.1		2.25		6,129.0		132.0		2.15
Loans Held for Sale		22.6		0.9		3.99		32.3		1.2		3.59
Loans and Leases 1
	Commercial and Industrial	1,262.8		44.5		3.52		1,179.9		40.3		3.42
	Commercial Mortgage	1,977.1		75.7		3.83		1,735.2		64.5		3.72
	Construction	238.4		11.2		4.69		224.2		10.0		4.43
	Commercial Lease Financing	205.9		4.8		2.32		198.6		4.8		2.40
	Residential Mortgage	3,307.6		126.4		3.82		3,037.0		120.6		3.97
	Home Equity	1,467.7		53.2		3.62		1,211.9		43.7		3.61
	Automobile	486.5		23.2		4.78		416.8		21.5		5.16
	Other 2	400.8		31.8		7.93		358.6		27.7		7.72
Total Loans and Leases		9,346.8		370.8		3.97		8,362.2		333.1		3.98
Other		40.5		0.9		2.33		39.2		0.8		2.07
Total Earning Assets 3		16,028.3		515.6		3.22		15,162.7		469.9		3.10
Cash and Due from Banks		158.7						129.0
Other Assets		562.2						533.7
Total Assets		$	16,749.2					$	15,825.4
Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,871.7	1.7		0.06		$	2,757.6	0.9		0.03
	Savings	5,388.5		6.7		0.12		5,217.9		4.6		0.09
	Time	1,589.4		13.9		0.88		1,254.9		7.1		0.57
Total Interest-Bearing Deposits		9,849.6		22.3		0.23		9,230.4		12.6		0.14
Short-Term Borrowings		17.7		0.2		1.05		8.4		—		0.15
Securities Sold Under Agreements to Repurchase		507.0		19.6		3.86		569.8		23.4		4.11
Other Debt		267.9		4.4		1.66		248.8		4.3		1.71
Total Interest-Bearing Liabilities		10,642.2		46.5		0.44		10,057.4		40.3		0.40
Net Interest Income				$	469.1					$	429.6
	Interest Rate Spread					2.78	%					2.70	%
	Net Interest Margin					2.93	%					2.83	%
Noninterest-Bearing Demand Deposits		4,655.8						4,389.1
Other Liabilities		242.1						229.6
Shareholders' Equity		1,209.1						1,149.3
Total Liabilities and Shareholders' Equity		$	16,749.2					$	15,825.4
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 $11,843,000 and $11,991,000 for the years
	ended December 31, 2017 and December 31, 2016, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended December 31, 2017
	Compared to September 30, 2017
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	(1.1	)	$	0.2		$	(0.9	)
Investment Securities
Available-for-Sale
Taxable	—			(0.1		)	(0.1		)
Non-Taxable	(0.2		)	0.1			(0.1		)
Held-to-Maturity
Taxable	0.8			0.7			1.5
Non-Taxable	(0.1		)	—			(0.1		)
Total Investment Securities	0.5			0.7			1.2
Loans and Leases
Commercial and Industrial	0.3			0.1			0.4
Commercial Mortgage	0.5			0.1			0.6
Construction	(0.3		)	—			(0.3		)
Commercial Lease Financing	—			0.1			0.1
Residential Mortgage	0.8			—			0.8
Home Equity	0.5			—			0.5
Automobile	0.3			(0.4		)	(0.1		)
Other 2	0.5			(0.2		)	0.3
Total Loans and Leases	2.6			(0.3		)	2.3
Other	—			0.1			0.1
Total Change in Interest Income	2.0			0.7			2.7
Change in Interest Expense:
Interest-Bearing Deposits
Savings	—			0.1			0.1
Time	(0.1		)	0.3			0.2
Total Interest-Bearing Deposits	(0.1		)	0.4			0.3
Short-Term Borrowings	0.1			—			0.1
Securities Sold Under Agreements to Repurchase	—			(0.1		)	(0.1		)
Total Change in Interest Expense	—			0.3			0.3
Change in Net Interest Income	$	2.0		$	0.4		$	2.4
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 December 31, 2017
	Compared to December 31, 2016
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	(0.8	)	$	0.7		$	(0.1	)
Investment Securities
Available-for-Sale
Taxable	0.6			1.2			1.8
Non-Taxable	(0.4		)	0.1			(0.3		)
Held-to-Maturity
Taxable	1.0			1.6			2.6
Non-Taxable	—			(0.1		)	(0.1		)
Total Investment Securities	1.2			2.8			4.0
Loans Held for Sale	(0.2		)	0.1			(0.1		)
Loans and Leases
Commercial and Industrial	0.5			1.2			1.7
Commercial Mortgage	2.2			1.0			3.2
Construction	(0.7		)	0.3			(0.4		)
Commercial Lease Financing	—			0.2			0.2
Residential Mortgage	2.7			(0.7		)	2.0
Home Equity	2.2			0.4			2.6
Automobile	0.9			(0.9		)	—
Other 2	1.2			—			1.2
Total Loans and Leases	9.0			1.5			10.5
Total Change in Interest Income	9.2			5.1			14.3
Change in Interest Expense:
Interest-Bearing Deposits
Demand	—			0.2			0.2
Savings	—			0.7			0.7
Time	0.8			1.8			2.6
Total Interest-Bearing Deposits	0.8			2.7			3.5
Short-Term Borrowings	—			0.1			0.1
Securities Sold Under Agreements to Repurchase	(0.3		)	(0.5		)	(0.8		)
Total Change in Interest Expense	0.5			2.3			2.8
Change in Net Interest Income	$	8.7		$	2.8		$	11.5
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
	Year Ended December 31, 2017
	Compared to December 31, 2016
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	(1.0	)	$	2.1		$	1.1
Investment Securities
Available-for-Sale
Taxable	1.4			4.0			5.4
Non-Taxable	(1.5		)	0.6			(0.9		)
Held-to-Maturity
Taxable	0.7			2.1			2.8
Non-Taxable	(0.1		)	(0.1		)	(0.2		)
Total Investment Securities	0.5			6.6			7.1
Loans Held for Sale	(0.4		)	0.1			(0.3		)
Loans and Leases
Commercial and Industrial	2.9			1.3			4.2
Commercial Mortgage	9.2			2.0			11.2
Construction	0.6			0.6			1.2
Commercial Lease Financing	0.2			(0.2		)	—
Residential Mortgage	10.5			(4.7		)	5.8
Home Equity	9.3			0.2			9.5
Automobile	3.4			(1.7		)	1.7
Other 2	3.3			0.8			4.1
Total Loans and Leases	39.4			(1.7		)	37.7
Other	—			0.1			0.1
Total Change in Interest Income	38.5			7.2			45.7
Change in Interest Expense:
Interest-Bearing Deposits
Demand	0.1			0.7			0.8
Savings	0.2			1.9			2.1
Time	2.2			4.6			6.8
Total Interest-Bearing Deposits	2.5			7.2			9.7
Short-Term Borrowings	—			0.2			0.2
Securities Sold Under Agreements to Repurchase	(2.5		)	(1.3		)	(3.8		)
Other Debt	0.3			(0.2		)	0.1
Total Change in Interest Expense	0.3			5.9			6.2
Change in Net Interest Income	$	38.2		$	1.3		$	39.5
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						Year Ended
	December 31,		September 30,		December 31,		December 31,
(dollars in thousands)	2017		2017		2016		2017		2016
Salaries	$	31,132	$	31,224	$	29,382	$	122,334	$	116,721
Incentive Compensation	7,078		4,857		5,784		22,834		23,409
Share-Based Compensation	3,040		1,962		4,126		10,184		12,150
Commission Expense	1,427		1,439		1,955		6,493		7,514
Retirement and Other Benefits	4,675		4,279		4,350		18,154		17,262
Payroll Taxes	2,301		2,353		2,044		11,025		10,133
Medical, Dental, and Life Insurance	2,503		3,444		2,908		12,362		13,038
Separation Expense	39		2,068		73		2,150		923
Total Salaries and Benefits	$	52,195	$	51,626	$	50,622	$	205,536	$	201,150

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances										Table 10
		December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)		2017		2017		2017		2017		2016
Commercial
	Commercial and Industrial	$	1,279,347	$	1,252,238	$	1,241,953	$	1,250,006	$	1,249,791
	Commercial Mortgage	2,103,967		2,050,998		2,009,886		1,909,064		1,889,551
	Construction	202,253		232,487		248,030		262,660		270,018
	Lease Financing	180,931		204,240		205,043		208,765		208,332
Total Commercial		3,766,498		3,739,963		3,704,912		3,630,495		3,617,692
Consumer
	Residential Mortgage	3,466,773		3,366,634		3,317,179		3,224,206		3,163,073
	Home Equity	1,585,455		1,528,353		1,473,123		1,411,489		1,334,163
	Automobile	528,474		506,102		484,092		468,078		454,333
	Other 1	449,747		432,904		408,307		379,541		380,524
Total Consumer		6,030,449		5,833,993		5,682,701		5,483,314		5,332,093
Total Loans and Leases		$	9,796,947	$	9,573,956	$	9,387,613	$	9,113,809	$	8,949,785
Deposits
		December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)		2017		2017		2017		2017		2016
Consumer		$	7,478,228	$	7,303,546	$	7,278,536	$	7,196,781	$	6,997,482
Commercial		5,973,763		6,091,800		5,903,639		6,051,721		6,110,189
Public and Other		1,431,977		1,652,814		1,602,474		1,228,031		1,212,569
Total Deposits		$	14,883,968	$	15,048,160	$	14,784,649	$	14,476,533	$	14,320,240
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
			December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)			2017			2017			2017			2017			2016
Non-Performing Assets
Non-Accrual Loans and Leases
	Commercial
		Commercial and Industrial	$	448		$	901		$	175		$	228		$	151
		Commercial Mortgage	1,398			1,425			1,460			973			997
	Total Commercial		1,846			2,326			1,635			1,201			1,148
	Consumer
		Residential Mortgage	9,243			9,188			9,337			11,756			13,780
		Home Equity	3,991			4,128			3,405			3,517			3,147
	Total Consumer		13,234			13,316			12,742			15,273			16,927
Total Non-Accrual Loans and Leases			15,080			15,642			14,377			16,474			18,075
Foreclosed Real Estate			1,040			1,393			1,991			2,529			1,686
Total Non-Performing Assets			$	16,120		$	17,035		$	16,368		$	19,003		$	19,761
Accruing Loans and Leases Past Due 90 Days or More
Commercial
	Commercial and Industrial		$	—		$	5		$	—		$	—		$	—
Total Commercial			—			5			—			—			—
Consumer
	Residential Mortgage		$	2,703		$	2,933		$	2,269		$	2,313		$	3,127
	Home Equity		1,624			1,392			2,343			1,133			1,457
	Automobile		886			806			539			673			894
	Other 1		1,934			1,528			1,859			1,738			1,592
Total Consumer			7,147			6,659			7,010			5,857			7,070
Total Accruing Loans and Leases Past Due 90 Days or More			$	7,147		$	6,664		$	7,010		$	5,857		$	7,070
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More			$	55,672		$	55,038		$	53,158		$	52,965		$	52,208
Total Loans and Leases			$	9,796,947		$	9,573,956		$	9,387,613		$	9,113,809		$	8,949,785
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.15		%	0.16		%	0.15		%	0.18		%	0.20		%
Ratio of Non-Performing Assets to Total Loans and Leases
	and Foreclosed Real Estate		0.16		%	0.18		%	0.17		%	0.21		%	0.22		%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans
	and Leases and Commercial Foreclosed Real Estate		0.05		%	0.06		%	0.04		%	0.03		%	0.03		%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
	and Leases and Consumer Foreclosed Real Estate		0.24		%	0.25		%	0.26		%	0.32		%	0.35		%
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		0.24		%	0.25		%	0.25		%	0.27		%	0.30		%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter			$	17,035		$	16,368		$	19,003		$	19,761		$	18,672
Additions			2,109			2,212			1,572			1,221			2,142
Reductions
	Payments		(368		)	(199		)	(497		)	(1,017		)	(252		)
	Return to Accrual Status		(1,779		)	(305		)	(1,370		)	(645		)	(653		)
	Sales of Foreclosed Real Estate		(353		)	(951		)	(1,883		)	—			(61		)
	Charge-offs/Write-downs		(524		)	(90		)	(457		)	(317		)	(87		)
Total Reductions			(3,024		)	(1,545		)	(4,207		)	(1,979		)	(1,053		)
Balance at End of Quarter			$	16,120		$	17,035		$	16,368		$	19,003		$	19,761
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									Year Ended
			December 31,			September 30,			December 31,			December 31,
(dollars in thousands)			2017			2017			2016			2017			2016
Balance at Beginning of Period			$	113,703		$	113,175		$	110,605		$	110,845		$	108,952
Loans and Leases Charged-Off
	Commercial
		Commercial and Industrial	(499		)	(611		)	(195		)	(1,408		)	(865		)
	Consumer
		Residential Mortgage	(4		)	(36		)	(335		)	(729		)	(723		)
		Home Equity	(221		)	(129		)	(256		)	(995		)	(1,104		)
		Automobile	(2,014		)	(1,921		)	(1,720		)	(7,737		)	(6,355		)
		Other 1	(3,108		)	(3,521		)	(2,445		)	(12,386		)	(9,462		)
Total Loans and Leases Charged-Off			(5,846		)	(6,218		)	(4,951		)	(23,255		)	(18,509		)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
		Commercial and Industrial	284			597			506			1,482			8,058
		Commercial Mortgage	—			—			11			—			53
		Construction	—			—			—			—			23
		Lease Financing	1			1			1			3			3
	Consumer
		Residential Mortgage	182			89			154			639			1,151
		Home Equity	498			837			323			2,681			1,776
		Automobile	576			692			459			2,495			2,207
		Other 1	520			530			487			2,128			1,881
Total Recoveries on Loans and Leases Previously Charged-Off			2,061			2,746			1,941			9,428			15,152
Net Loans and Leases Charged-Off			(3,785		)	(3,472		)	(3,010		)	(13,827		)	(3,357		)
Provision for Credit Losses			4,250			4,000			3,250			16,900			4,750
Provision for Unfunded Commitments			—			—			—			250			500
Balance at End of Period 2			$	114,168		$	113,703		$	110,845		$	114,168		$	110,845
Components
Allowance for Loan and Lease Losses			$	107,346		$	106,881		$	104,273		$	107,346		$	104,273
Reserve for Unfunded Commitments			6,822			6,822			6,572			6,822			6,572
Total Reserve for Credit Losses			$	114,168		$	113,703		$	110,845		$	114,168		$	110,845
Average Loans and Leases Outstanding			$	9,688,710		$	9,451,972		$	8,813,755		$	9,346,828		$	8,362,210
Ratio of Net Loans and Leases Charged-Off to
	Average Loans and Leases Outstanding (annualized)		0.15		%	0.15		%	0.14		%	0.15		%	0.04		%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding			1.10		%	1.12		%	1.17		%	1.10		%	1.17		%
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 and
	Retail			Commercial			Private			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Banking			and Other			Total
Three Months Ended December 31, 2017
Net Interest Income	$	65,408		$	43,932		$	9,008		$	422		$	118,770
Provision for Credit Losses	3,595			195			(5		)	465			4,250
Net Interest Income After Provision for Credit Losses	61,813			43,737			9,013			(43		)	114,520
Noninterest Income	20,910			5,219			13,716			2,010			41,855
Noninterest Expense	(54,021		)	(19,726		)	(15,982		)	(2,607		)	(92,336		)
Income Before Provision for Income Taxes	28,702			29,230			6,747			(640		)	64,039
Provision for Income Taxes	(10,222		)	(10,325		)	(2,496		)	1,957			(21,086		)
Net Income	$	18,480		$	18,905		$	4,251		$	1,317		$	42,953
Total Assets as of December 31, 2017	$	5,936,568		$	3,742,991		$	336,455		$	7,073,038		$	17,089,052
Three Months Ended December 31, 2016
Net Interest Income	$	63,169		$	40,968		$	6,196		$	(3,240	)	$	107,093
Provision for Credit Losses	3,285			(270		)	(5		)	240			3,250
Net Interest Income After Provision for Credit Losses	59,884			41,238			6,201			(3,480		)	103,843
Noninterest Income	24,460			5,952			13,764			2,327			46,503
Noninterest Expense	(52,998		)	(17,926		)	(14,996		)	(3,669		)	(89,589		)
Income Before Provision for Income Taxes	31,346			29,264			4,969			(4,822		)	60,757
Provision for Income Taxes	(11,109		)	(10,330		)	(1,839		)	6,034			(17,244		)
Net Income	$	20,237		$	18,934		$	3,130		$	1,212		$	43,513
Total Assets as of December 31, 2016	$	5,342,078		$	3,565,912		$	280,410		$	7,303,967		$	16,492,367

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information													Table 13b
							Investment
							Services and
	Retail			Commercial			Private			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Banking			and Other			Total
Year Ended December 31, 2017
Net Interest Income	$	264,041		$	171,038		$	29,693		$	(7,534	)	$	457,238
Provision for Credit Losses	14,008			(160		)	(21		)	3,073			16,900
Net Interest Income After Provision for Credit Losses	250,033			171,198			29,714			(10,607		)	440,338
Noninterest Income	85,042			21,670			57,105			21,600			185,417
Noninterest Expense	(209,807		)	(74,209		)	(61,674		)	(12,001		)	(357,691		)
Income Before Provision for Income Taxes	125,268			118,659			25,145			(1,008		)	268,064
Provision for Income Taxes	(44,545		)	(41,797		)	(9,303		)	12,253			(83,392		)
Net Income	$	80,723		$	76,862		$	15,842		$	11,245		$	184,672
Total Assets as of December 31, 2017	$	5,936,568		$	3,742,991		$	336,455		$	7,073,038		$	17,089,052
Year Ended December 31, 2016
Net Interest Income	$	242,967		$	156,080		$	24,714		$	(6,182	)	$	417,579
Provision for Credit Losses	10,700			(7,322		)	(23		)	1,395			4,750
Net Interest Income After Provision for Credit Losses	232,267			163,402			24,737			(7,577		)	412,829
Noninterest Income	91,824			26,967			57,396			21,156			197,343
Noninterest Expense	(208,389		)	(70,405		)	(59,782		)	(12,002		)	(350,578		)
Income Before Provision for Income Taxes	115,702			119,964			22,351			1,577			259,594
Provision for Income Taxes	(41,067		)	(42,667		)	(8,270		)	13,871			(78,133		)
Net Income	$	74,635		$	77,297		$	14,081		$	15,448		$	181,461
Total Assets as of December 31, 2016	$	5,342,078		$	3,565,912		$	280,410		$	7,303,967		$	16,492,367

Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data																Table 14
	Three Months Ended
	December 31,				September 30,				June 30,				March 31,			December 31,
(dollars in thousands, except per share amounts)	2017				2017				2017				2017			2016
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	96,974			$	94,621			$	90,909			$	87,937		$	86,532
Income on Investment Securities
Available-for-Sale	11,866				11,987				11,835				11,084			10,244
Held-to-Maturity	21,782				20,334				19,918				19,706			19,213
Deposits	3				5				2				5			2
Funds Sold	717				1,579				696				890			795
Other	271				235				208				230			281
Total Interest Income	131,613				128,761				123,568				119,852			117,067
Interest Expense
Deposits	6,980				6,663				4,998				3,691			3,448
Securities Sold Under Agreements to Repurchase	4,664				4,664				5,079				5,185			5,406
Funds Purchased	81				—				39				3			3
Short-Term Borrowings	—				—				64				—			—
Other Debt	1,118				1,117				1,109				1,101			1,117
Total Interest Expense	12,843				12,444				11,289				9,980			9,974
Net Interest Income	118,770				116,317				112,279				109,872			107,093
Provision for Credit Losses	4,250				4,000				4,250				4,400			3,250
Net Interest Income After Provision for Credit Losses	114,520				112,317				108,029				105,472			103,843
Noninterest Income
Trust and Asset Management	11,105				11,050				11,796				11,479			11,232
Mortgage Banking	2,593				3,237				3,819				3,300			6,256
Service Charges on Deposit Accounts	8,053				8,188				8,009				8,325			8,537
Fees, Exchange, and Other Service Charges	13,784				13,764				13,965				13,332			13,731
Investment Securities Gains (Losses), Net	(617		)		(566		)		(520		)		12,133			(337		)
Annuity and Insurance	1,273				1,429				2,161				1,995			1,457
Bank-Owned Life Insurance	1,609				1,861				1,550				1,497			1,551
Other	4,055				3,447				4,456				3,855			4,076
Total Noninterest Income	41,855				42,410				45,236				55,916			46,503
Noninterest Expense
Salaries and Benefits	52,195				51,626				50,113				51,602			50,622
Net Occupancy	8,510				7,727				8,131				8,168			7,581
Net Equipment	5,454				5,417				5,706				5,501			5,191
Data Processing	4,310				3,882				3,881				3,410			3,665
Professional Fees	3,266				3,044				2,592				2,779			2,990
FDIC Insurance	2,253				2,107				2,097				2,209			2,015
Other	16,348				14,795				15,669				14,899			17,525
Total Noninterest Expense	92,336				88,598				88,189				88,568			89,589
Income Before Provision for Income Taxes	64,039				66,129				65,076				72,820			60,757
Provision for Income Taxes	21,086				20,248				20,414				21,644			17,244
Net Income	$	42,953			$	45,881			$	44,662			$	51,176		$	43,513
Basic Earnings Per Share	$	1.02			$	1.09			$	1.05			$	1.21		$	1.03
Diluted Earnings Per Share	$	1.01			$	1.08			$	1.05			$	1.20		$	1.02
Balance Sheet Totals
Loans and Leases	$	9,796,947			$	9,573,956			$	9,387,613			$	9,113,809		$	8,949,785
Total Assets	17,089,052				17,268,302				16,981,292				16,664,215			16,492,367
Total Deposits	14,883,968				15,048,160				14,784,649				14,476,533			14,320,240
Total Shareholders' Equity	1,231,868				1,227,893				1,213,757				1,193,137			1,161,537
Performance Ratios
Return on Average Assets	1.00			%	1.07			%	1.09			%	1.26		%	1.07			%
Return on Average Shareholders' Equity	13.85				14.89				14.87				17.63			14.90
Efficiency Ratio 1	57.49				55.82				55.99				53.42			58.33
Net Interest Margin 2	2.98				2.92				2.92				2.89			2.83
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
	Eleven Months Ended				Year Ended
($ in millions; jobs in thousands)	November 30, 2017				December 31, 2016					December 31, 2015
Hawaii Economic Trends
State General Fund Revenues 1	$	5,929.0	3.8	%	$	6,215.4		3.6	%	$	5,998.6		8.4		%
General Excise and Use Tax Revenue 1	$	3,069.2	3.7	%	$	3,205.7		2.0	%	$	3,141.5		5.4		%
Jobs 2	670.3				671.7					657.7
								November 30,		December 31,
(spot rates)								2017		2016			2015
Unemployment 3
Statewide, seasonally adjusted								2.0	%	2.9		%	3.2		%
Oahu								1.9		2.4			2.7
Island of Hawaii								2.4		3.1			3.7
Maui								2.1		2.7			3.1
Kauai								2.0		2.8			3.5
					December 31,
(percentage change, except months of inventory)					2017			2016		2015			2014
Housing Trends (Single Family Oahu) 4
Median Home Price					2.7		%	5.0	%	3.7		%	3.8		%
Home Sales Volume (units)					6.3		%	6.5	%	5.2		%	(0.8	)	%
Months of Inventory					2.1			2.5		2.6			2.6
					Monthly Visitor Arrivals,					Percentage Change
(in thousands)					Not Seasonally Adjusted					from Previous Year
Tourism 5
November 30, 2017								748.3					7.3
October 31, 2017								737.0					2.8
September 30, 2017								701.8					5.1
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								697.1					4.7
October 31, 2016								717.0					4.3
September 30, 2016								667.6					3.1
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
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.