Bank of Hawaii (BOH) 8-K Bank of Hawaii Corporation Second Quarter 2018 Financial Results

Bank of Hawaii Corporation Second Quarter 2018 Financial Results

•Diluted Earnings Per Share $1.30

•Net Income $54.7 Million

•Board of Directors Approves Dividend of $0.60 Per Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (July 23, 2018) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $1.30 for the second quarter of 2018, up from diluted earnings per share of $1.28 in the previous quarter, and up from diluted earnings per share of $1.05 in the same quarter last year. Net income for the second quarter of 2018 was $54.7 million compared with net income of $54.0 million in the first quarter of 2018 and net income of $44.7 million in the second quarter of 2017.

Loan and lease balances increased to $10.1 billion at June 30, 2018, up 1.4 percent from March 31, 2018, and up 7.1 percent compared with June 30, 2017. Total deposits were $14.9 billion at the end of the second quarter, down slightly from March 31, 2018 due to the planned decline in public time deposits. Total deposits were up 1.1 percent compared with June 30, 2017.

“Bank of Hawaii Corporation continued to perform well during the second quarter of 2018,” said Peter Ho, Chairman, President and CEO.  “Loans continued to grow, our margin expanded, asset quality remains strong, and we maintained our disciplined approach to risk and capital management.”

The return on average assets for the second quarter of 2018 was 1.30 percent, up from 1.29 percent in the previous quarter and 1.09 percent in the same quarter last year. The return on average equity for the second quarter of 2018 was 17.68 percent down slightly from 17.74 percent for the first quarter of 2018 and up from 14.87 percent for the second quarter of 2017. The efficiency ratio for the second quarter of 2018 was 56.12 percent compared with 57.91 percent in the previous quarter and 55.99 percent in the same quarter last year.

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Bank of Hawaii Corporation Second Quarter 2018 Financial Results     Page 2

For the six-month period ended June 30, 2018, net income was $108.8 million, an increase of $13.0 million from net income of $95.8 million during the same period last year. Diluted earnings per share were $2.57 for the first half of 2018, an increase from diluted earnings per share of $2.24 for the first half of 2017. The return on average assets for the six-month period ended June 30, 2018 was 1.29 percent compared with 1.17 percent for the same six months in 2017. The year-to-date return on average equity was 17.71 percent for the first half of 2018 compared with 16.22 percent for the six-month period ended June 30, 2017. The efficiency ratio for the first half of 2018 was 57.01 percent compared with 54.67 percent in the same period last year.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the second quarter of 2018 was $121.8 million, an increase of $1.5 million compared with net interest income of $120.3 million in the first quarter of 2018 and an increase of $6.5 million compared with net interest income of $115.3 million in the second quarter of 2017. Net interest income for the first half of 2018 was $242.1 million, an increase of $13.8 million compared with net interest income of $228.3 million for the first half of 2017. Analyses of the changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin was 3.04 percent for the second quarter of 2018, up 4 basis points from the net interest margin of 3.00 percent in the previous quarter and a 12 basis point increase from the net interest margin of 2.92 percent in the second quarter of 2017. The net interest margin for the first six months of 2018 was 3.02 percent compared with 2.90 percent for the same six-month period last year.

Results for the second quarter of 2018 included a provision for credit losses of $3.5 million compared with a provision for credit losses of $4.1 million in the previous quarter and a provision for credit losses of $4.3 million in the same quarter last year. The provision for credit losses during the first half of 2018 was $7.6 million compared with $8.7 million during the same period in 2017.

Noninterest income was $41.3 million in the second quarter of 2018, a decrease of $2.7 million compared with noninterest income of $44.0 million in the first quarter of 2018 and a decrease of $3.9 million compared with noninterest income of $45.2 million in the second quarter of 2017. Noninterest income during the second quarter of 2018 included a negative adjustment of $1.0 million related to a change in the Visa Class B conversion ratio. Noninterest income in the first quarter of 2018 included $2.8 million resulting from a low-income housing investment sale and distribution. There were no significant items in noninterest income during the second quarter of 2017. The decrease compared with the second quarter last year was primarily due to lower mortgage banking income and a decline in service charges. Noninterest income for the first half of 2018 was $85.3 million, a decrease of $15.9 million compared with noninterest income of $101.2 million for the first half of 2017. Noninterest income in the first half of 2017 included a gain of $12.5 million resulting from the sale of 90,000 Visa Class B shares.

Noninterest expense was $90.8 million in the second quarter of 2018, a decrease of $3.6 million compared with noninterest expense of $94.4 million in the first quarter of 2018 and an increase of $2.6 million compared with noninterest expense of $88.2 million in the second quarter last year. There were no significant items in noninterest expense during the second quarter of 2018 or the second quarter of 2017. Noninterest expense in the first quarter of 2018 included seasonal payroll expenses of approximately $2.5 million, a legal reserve of $2.0 million, and severance expenses of $1.0 million. Noninterest expense for the first half of 2018 was $185.2 million, an increase of $8.4 million compared with $176.8 million for the first half of 2017. Adjusted for the legal reserve and severance, the increase is largely related to salaries and benefits, including minimum wage increases. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

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Bank of Hawaii Corporation Second Quarter 2018 Financial Results     Page 3

The effective tax rate for the second quarter of 2018 was 18.94 percent compared with 16.19 percent in the previous quarter and 31.37 percent in the same quarter last year. The lower effective tax rate in the first and second quarters of 2018 was primarily due to the reduction in the federal corporate tax rate from 35 percent to 21 percent as a result of the Tax Cuts and Jobs Act. The tax rate during the first quarter of 2018 was also favorably impacted by a $2.0 million adjustment to the Company’s low-income housing investments. The effective tax rate for the first half of 2018 was 17.60 percent compared with 30.50 percent during the same period last year.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services and Private Banking, and Treasury & Other. Their 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 asset quality continued to remain solid during the second quarter of 2018. Total non-performing assets were $15.2 million at June 30, 2018, down from non-performing assets of $15.7 million at March 31, 2018 and down from non-performing assets of $16.4 million at June 30, 2017. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.15 percent at the end of the second quarter of 2018, down from 0.16 percent at the end of the first quarter of 2018 and down from 0.17 percent at the end of the second quarter last year.

Accruing loans and leases past due 90 days or more were $13.3 million at June 30, 2018, up from $8.2 million at March 31, 2018 and $7.0 million at June 30, 2017. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $50.2 million at June 30, 2018, down from $56.7 million at March 31, 2018 and down from $53.2 million at June 30, 2017. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loan and lease charge-offs during the second quarter of 2018 were $3.3 million or 0.13 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $5.7 million during the quarter were partially offset by recoveries of $2.4 million. Net charge-offs during the first quarter of 2018 were $3.5 million or 0.15 percent annualized of total average loans and leases outstanding and comprised of $6.0 million in charge-offs and recoveries of $2.5 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 comprised of $5.5 million in charge-offs and recoveries of $2.5 million. Net charge-offs during the first half of 2018 were $6.8 million or 0.14 percent annualized of total average loans and leases outstanding compared with net charge-offs of $6.6 million or 0.15 percent annualized of total average loans and leases outstanding for the first half of 2017.

The allowance for loan and lease losses increased to $108.2 million at June 30, 2018 compared with $107.9 million at March 31, 2018 and $106.4 million at June 30, 2017. The ratio of the allowance for loan and lease losses to total loans and leases was 1.08 percent at June 30, 2018, a decrease of 1 basis point from the previous quarter and 5 basis points from the second quarter last year. The allowance for loan and lease losses at June 30, 2018 is commensurate with the Company’s strong asset quality and the Hawaii economy. The reserve for unfunded commitments of $6.8 million at June 30, 2018 was unchanged from March 31, 2018 and June 30, 2017. Details of loan and lease charge-offs, recoveries and the components of the total reserve for credit losses are summarized in Table 12.

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Bank of Hawaii Corporation Second Quarter 2018 Financial Results     Page 4

Other Financial Highlights

Total assets were $17.12 billion at June 30, 2018, down slightly from total assets of $17.14 billion at March 31, 2018 and up from total assets of $16.98 billion at June 30, 2017. Average total assets were $16.92 billion during the second quarter of 2018 compared with $16.96 billion during the previous quarter and $16.50 billion during the same quarter last year.

The investment securities portfolio was $5.69 billion at June 30, 2018, down from $5.97 billion at March 31, 2018 and $6.10 billion at June 30, 2017. The portfolio remains largely comprised of securities issued by U.S. government agencies and included $3.60 billion in securities held to maturity and $2.09 billion in securities available for sale at June 30, 2018.

Total loans and leases were $10.05 billion at June 30, 2018, up from total loans and leases of $9.92 billion at March 31, 2018, and up from total loans and leases of $9.39 billion at June 30, 2017. Average total loans and leases increased to $9.96 billion during the second quarter of 2018 from $9.80 billion during the previous quarter and $9.22 billion during the same quarter last year.

The commercial loan portfolio was $3.82 billion at June 30, 2018, up from $3.79 billion at March 31, 2018, and up from $3.70 billion at June 30, 2017. The consumer loan portfolio increased to $6.24 billion at June 30, 2018 compared with $6.12 billion at March 31, 2018 and $5.68 billion at June 30, 2017. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $14.94 billion at June 30, 2018, down from total deposits of $14.96 billion at March 31, 2018 and up from total deposits of $14.78 billion at June 30, 2017. Average total deposits were $14.71 billion during the second quarter of 2018, down slightly from $14.72 billion during the previous quarter and up from total deposits of $14.25 billion during the same quarter last year.

Consumer deposits of $7.67 billion at June 30, 2018 were up slightly from March 31, 2018 and up from $7.28 billion at June 30, 2017. Commercial deposits of $5.92 billion at June 30, 2018 also reflected a small increase from commercial deposits of $5.90 billion at March 31, 2018 and June 30, 2017. Other deposits, including public funds, were $1.35 billion at June 30, 2018, down from $1.39 billion at March 31, 2018 and $1.60 billion at June 30, 2017 largely due to the decline in public time deposits. Deposit balances are summarized in Tables 7a, 7b, and 10.

During the second quarter of 2018, the Company repurchased 292.0 thousand shares of common stock at a total cost of $24.8 million under its share repurchase program. The average cost was $84.93 per share repurchased. From the beginning of the share repurchase program initiated during July of 2001 through June 30, 2018, the Company has repurchased 54.6 million shares and returned over $2.1 billion to shareholders at an average cost of $38.68 per share. Remaining buyback authority under the share repurchase program was $81.3 million at June 30, 2018. From July 2 through July 20, 2018, the Company repurchased an additional 68.0 thousand shares of common stock at an average cost of $84.55 per share.

Total shareholders’ equity increased to $1.25 billion at June 30, 2018 compared with $1.24 billion at March 31, 2018 and $1.21 billion at June 30, 2017. The Tier 1 Capital Ratio at June 30, 2018 was 13.27 percent compared with 13.37 percent at March 31, 2018 and 13.34 percent at June 30, 2017. The Tier 1 leverage ratio at June 30, 2018 was 7.53 percent compared with 7.46 percent at March 31, 2018 and 7.37 percent at June 30, 2017.

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Bank of Hawaii Corporation Second Quarter 2018 Financial Results     Page 5

The Company’s Board of Directors declared a quarterly cash dividend of $0.60 per share on the Company’s outstanding shares. The dividend will be payable on September 17, 2018 to shareholders of record at the close of business on August 31, 2018.

Hawaii Economy

Economic conditions in Hawaii continue to remain positive due to growing tourism, healthy construction activity, record low unemployment, and a strong real estate market.  The statewide seasonally-adjusted unemployment rate in Hawaii continues to remain among the lowest in the United States at 2.1 percent in June 2018 compared to 4.0 percent nationally. For the first five months of 2018, total visitor spending increased 10.9 percent and visitor arrivals increased 8.4 percent compared to the same period in 2017. For the first five months of 2018, all four of Hawaii’s largest visitor markets, U.S. West, U.S. East, Japan, and Canada, have reported strong growth compared with the first five months of 2017. For the first six months of 2018, the volume of single-family home sales on Oahu decreased 1.6 percent while the median sales price increased 3.9 percent compared with the same period in 2017. The volume of condominium sales during the first half of 2018 on Oahu increased 1.3 percent and the median sales price was 6.5 percent higher compared with 2017. As of June 30, 2018, months of inventory of single-family homes and condominiums on Oahu remained low at 2.7 months and 3.0 months, respectively. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its second quarter 2018 financial results today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii 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, July 23, 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 2584747 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, 2017, which was filed with the U.S. Securities and Exchange Commission.  We have not committed to update forward-looking statements to reflect later events or circumstances.

Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers, and governments in Hawaii, American Samoa, and the West Pacific. The Company’s principal subsidiary, Bank of Hawaii, was founded in 1897. 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									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands, except per share amounts)	2018			2018			2017			2018			2017
For the Period:
Operating Results
Net Interest Income	$	120,496		$	118,956		$	112,279		$	239,452		$	222,151
Provision for Credit Losses	3,500			4,125			4,250			7,625			8,650
Total Noninterest Income	41,298			44,035			45,236			85,333			101,152
Total Noninterest Expense	90,791			94,384			88,189			185,175			176,757
Net Income	54,718			54,040			44,662			108,758			95,838
Basic Earnings Per Share	1.31			1.29			1.05			2.59			2.26
Diluted Earnings Per Share	1.30			1.28			1.05			2.57			2.24
Dividends Declared Per Share	0.60			0.52			0.50			1.12			1.00
Performance Ratios
Return on Average Assets	1.30		%	1.29		%	1.09		%	1.29		%	1.17		%
Return on Average Shareholders' Equity	17.68			17.74			14.87			17.71			16.22
Efficiency Ratio 1	56.12			57.91			55.99			57.01			54.67
Net Interest Margin 2	3.04			3.00			2.92			3.02			2.90
Dividend Payout Ratio 3	45.80			40.31			47.62			43.24			44.25
Average Shareholders' Equity to Average Assets	7.34			7.29			7.30			7.31			7.23
Average Balances
Average Loans and Leases	$	9,962,860		$	9,803,753		$	9,217,779		$	9,883,746		$	9,119,610
Average Assets	16,921,820			16,957,430			16,495,925			16,939,527			16,465,435
Average Deposits	14,709,299			14,720,266			14,253,149			14,714,752			14,236,112
Average Shareholders' Equity	1,241,672			1,235,550			1,204,837			1,238,628			1,191,157
Per Share of Common Stock
Book Value	$	29.65		$	29.33		$	28.45		$	29.65		$	28.45
Tangible Book Value	28.90			28.59			27.72			28.90			27.72
Market Value
Closing	83.42			83.10			82.97			83.42			82.97
High	88.92			89.09			84.99			89.09			90.80
Low	80.20			78.40			75.92			78.40			75.92
				June 30,			March 31,			December 31,			June 30,
				2018			2018			2017			2017
As of Period End:
Balance Sheet Totals
Loans and Leases				$	10,053,323		$	9,916,628		$	9,796,947		$	9,387,613
Total Assets				17,124,162			17,136,030			17,089,052			16,981,292
Total Deposits				14,943,358			14,957,133			14,883,968			14,784,649
Other Debt				235,681			235,699			260,716			267,904
Total Shareholders' Equity				1,247,717			1,241,193			1,231,868			1,213,757
Asset Quality
Non-Performing Assets				$	15,157		$	15,736		$	16,120		$	16,368
Allowance for Loan and Lease Losses				108,188			107,938			107,346			106,353
Allowance to Loans and Leases Outstanding				1.08		%	1.09		%	1.10		%	1.13		%
Capital Ratios
Common Equity Tier 1 Capital Ratio				13.27		%	13.37		%	13.24		%	13.34		%
Tier 1 Capital Ratio				13.27			13.37			13.24			13.34
Total Capital Ratio				14.47			14.58			14.46			14.58
Tier 1 Leverage Ratio				7.53			7.46			7.26			7.37
Total Shareholders' Equity to Total Assets				7.29			7.24			7.21			7.15
Tangible Common Equity to Tangible Assets 4				7.12			7.07			7.04			6.97
Tangible Common Equity to Risk-Weighted Assets 4				12.68			12.80			12.84			13.01
Non-Financial Data
Full-Time Equivalent Employees				2,173			2,138			2,132			2,142
Branches				69			69			69			69
ATMs				385			377			387			388
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."
Note: Total Capital Ratio as of March 31, 2018 was revised from 14.59%.

Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures											Table 2
		June 30,			March 31,			December 31,			June 30,
(dollars in thousands)		2018			2018			2017			2017
Total Shareholders' Equity		$	1,247,717		$	1,241,193		$	1,231,868		$	1,213,757
Less:	Goodwill	31,517			31,517			31,517			31,517
Tangible Common Equity		$	1,216,200		$	1,209,676		$	1,200,351		$	1,182,240
Total Assets		$	17,124,162		$	17,136,030		$	17,089,052		$	16,981,292
Less:	Goodwill	31,517			31,517			31,517			31,517
Tangible Assets		$	17,092,645		$	17,104,513		$	17,057,535		$	16,949,775
Risk-Weighted Assets, determined in accordance
	with prescribed regulatory requirements	$	9,593,242		$	9,452,847		$	9,348,296		$	9,087,057
Total Shareholders' Equity to Total Assets		7.29		%	7.24		%	7.21		%	7.15		%
Tangible Common Equity to Tangible Assets (Non-GAAP)		7.12		%	7.07		%	7.04		%	6.97		%
Tier 1 Capital Ratio		13.27		%	13.37		%	13.24		%	13.34		%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)		12.68		%	12.80		%	12.84		%	13.01		%
Note: Risk-Weighted Assets as of March 31, 2018 was revised from $9,451,647.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income													Table 3
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands, except per share amounts)	2018			2018			2017			2018			2017
Interest Income
Interest and Fees on Loans and Leases	$	101,311		$	97,634		$	90,909		$	198,945		$	178,846
Income on Investment Securities
Available-for-Sale	12,380			12,141			11,835			24,521			22,919
Held-to-Maturity	20,711			21,296			19,918			42,007			39,624
Deposits	(4		)	18			2			14			7
Funds Sold	846			757			696			1,603			1,586
Other	341			300			208			641			438
Total Interest Income	135,585			132,146			123,568			267,731			243,420
Interest Expense
Deposits	9,459			7,581			4,998			17,040			8,689
Securities Sold Under Agreements to Repurchase	4,617			4,564			5,079			9,181			10,264
Funds Purchased	83			53			39			136			42
Short-Term Borrowings	13			16			64			29			64
Other Debt	917			976			1,109			1,893			2,210
Total Interest Expense	15,089			13,190			11,289			28,279			21,269
Net Interest Income	120,496			118,956			112,279			239,452			222,151
Provision for Credit Losses	3,500			4,125			4,250			7,625			8,650
Net Interest Income After Provision for Credit Losses	116,996			114,831			108,029			231,827			213,501
Noninterest Income
Trust and Asset Management	11,356			11,181			11,796			22,537			23,275
Mortgage Banking	2,179			2,145			3,819			4,324			7,119
Service Charges on Deposit Accounts	6,865			7,129			8,009			13,994			16,334
Fees, Exchange, and Other Service Charges	14,400			14,333			13,965			28,733			27,297
Investment Securities Gains (Losses), Net	(1,702		)	(666		)	(520		)	(2,368		)	11,613
Annuity and Insurance	1,847			1,206			2,161			3,053			4,156
Bank-Owned Life Insurance	1,796			1,842			1,550			3,638			3,047
Other	4,557			6,865			4,456			11,422			8,311
Total Noninterest Income	41,298			44,035			45,236			85,333			101,152
Noninterest Expense
Salaries and Benefits	52,148			54,422			49,676			106,570			100,841
Net Occupancy	8,588			8,534			8,131			17,122			16,299
Net Equipment	5,845			5,527			5,706			11,372			11,207
Data Processing	4,563			3,891			3,881			8,454			7,291
Professional Fees	2,546			2,773			2,592			5,319			5,371
FDIC Insurance	2,182			2,157			2,097			4,339			4,306
Other	14,919			17,080			16,106			31,999			31,442
Total Noninterest Expense	90,791			94,384			88,189			185,175			176,757
Income Before Provision for Income Taxes	67,503			64,482			65,076			131,985			137,896
Provision for Income Taxes	12,785			10,442			20,414			23,227			42,058
Net Income	$	54,718		$	54,040		$	44,662		$	108,758		$	95,838
Basic Earnings Per Share	$	1.31		$	1.29		$	1.05		$	2.59		$	2.26
Diluted Earnings Per Share	$	1.30		$	1.28		$	1.05		$	2.57		$	2.24
Dividends Declared Per Share	$	0.60		$	0.52		$	0.50		$	1.12		$	1.00
Basic Weighted Average Shares	41,884,221			42,038,573			42,353,976			41,960,743			42,379,730
Diluted Weighted Average Shares	42,152,200			42,358,425			42,658,885			42,252,900			42,704,010
Note: Certain prior period information has been reclassified to conform to current presentation.

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income													Table 4
		Three Months Ended								Six Months Ended
		June 30,			March 31,			June 30,		June 30,
(dollars in thousands)		2018			2018			2017		2018			2017
Net Income		$	54,718		$	54,040		$	44,662	$	108,758		$	95,838
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities	(2,974		)	(9,121		)	3,106		(12,095		)	8,000
	Defined Benefit Plans	216			216			147		432			293
Other Comprehensive Income (Loss)		(2,758		)	(8,905		)	3,253		(11,663		)	8,293
Comprehensive Income		$	51,960		$	45,135		$	47,915	$	97,095		$	104,131

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands)	2018			2018			2017			2017
Assets
Interest-Bearing Deposits in Other Banks	$	3,524		$	2,589		$	3,421		$	3,913
Funds Sold	361,933			387,766			181,413			742,221
Investment Securities
Available-for-Sale	2,092,870			2,184,187			2,232,979			2,316,728
Held-to-Maturity (Fair Value of $3,500,497; $3,711,149; $3,894,121; and $3,785,641)	3,595,891			3,789,092			3,928,170			3,782,702
Loans Held for Sale	16,025			23,548			19,231			20,354
Loans and Leases	10,053,323			9,916,628			9,796,947			9,387,613
Allowance for Loan and Lease Losses	(108,188		)	(107,938		)	(107,346		)	(106,353		)
Net Loans and Leases	9,945,135			9,808,690			9,689,601			9,281,260
Total Earning Assets	16,015,378			16,195,872			16,054,815			16,147,178
Cash and Due from Banks	312,303			174,871			263,017			128,093
Premises and Equipment, Net	142,791			137,201			130,926			119,569
Accrued Interest Receivable	50,594			52,941			50,485			46,595
Foreclosed Real Estate	2,926			2,768			1,040			1,991
Mortgage Servicing Rights	24,583			24,493			24,622			24,471
Goodwill	31,517			31,517			31,517			31,517
Bank-Owned Life Insurance	281,018			280,537			280,034			277,235
Other Assets	263,052			235,830			252,596			204,643
Total Assets	$	17,124,162		$	17,136,030		$	17,089,052		$	16,981,292
Liabilities
Deposits
Noninterest-Bearing Demand	$	4,729,203		$	4,759,777		$	4,724,300		$	4,706,962
Interest-Bearing Demand	3,111,069			3,028,373			3,082,563			3,029,549
Savings	5,389,763			5,397,291			5,389,013			5,364,191
Time	1,713,323			1,771,692			1,688,092			1,683,947
Total Deposits	14,943,358			14,957,133			14,883,968			14,784,649
Short-Term Borrowings	330			—			—			—
Securities Sold Under Agreements to Repurchase	504,193			505,293			505,293			505,292
Other Debt	235,681			235,699			260,716			267,904
Retirement Benefits Payable	36,730			37,046			37,312			48,346
Accrued Interest Payable	7,395			8,229			6,946			5,105
Taxes Payable and Deferred Taxes	15,136			29,557			24,009			31,444
Other Liabilities	133,622			121,880			138,940			124,795
Total Liabilities	15,876,445			15,894,837			15,857,184			15,767,535
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: June 30, 2018 - 58,070,285 / 42,084,066;
March 31, 2018 - 58,051,646 / 42,314,414; December 31, 2017 - 57,959,074 / 42,401,443;
and June 30, 2017 - 57,972,647 / 42,655,954)	577			577			576			576
Capital Surplus	566,436			563,598			561,161			556,409
Accumulated Other Comprehensive Loss	(53,855		)	(51,097		)	(34,715		)	(25,613		)
Retained Earnings	1,581,168			1,551,900			1,512,218			1,468,328
Treasury Stock, at Cost (Shares: June 30, 2018 - 15,986,219; March 31, 2018 - 15,737,232;
December 31, 2017 - 15,557,631; and June 30, 2017 - 15,316,693)	(846,609		)	(823,785		)	(807,372		)	(785,943		)
Total Shareholders' Equity	1,247,717			1,241,193			1,231,868			1,213,757
Total Liabilities and Shareholders' Equity	$	17,124,162		$	17,136,030		$	17,089,052		$	16,981,292

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, 2017		42,401,443		$	576	$	561,161	$	(34,715	)	$	1,512,218		$	(807,372	)	$	1,231,868
Net Income		—		—		—		—			108,758			—			108,758
Other Comprehensive Loss		—		—		—		(11,663		)	—			—			(11,663		)
Reclassification of the Income Tax Effects of the
	Tax Cuts and Jobs Act from AOCI	—		—		—		(7,477		)	7,477			—			—
Share-Based Compensation		—		—		4,055		—			—			—			4,055
Common Stock Issued under Purchase and Equity
	Compensation Plans	179,644		1		1,220		—			166			2,992			4,379
Common Stock Repurchased		(497,021	)	—		—		—			—			(42,229		)	(42,229		)
Cash Dividends Declared ($1.12 per share)		—		—		—		—			(47,451		)	—			(47,451		)
Balance as of June 30, 2018		42,084,066		$	577	$	566,436	$	(53,855	)	$	1,581,168		$	(846,609	)	$	1,247,717
Balance as of December 31, 2016		42,635,978		$	576	$	551,628	$	(33,906	)	$	1,415,440		$	(772,201	)	$	1,161,537
Net Income		—		—		—		—			95,838			—			95,838
Other Comprehensive Income		—		—		—		8,293			—			—			8,293
Share-Based Compensation		—		—		3,726		—			—			—			3,726
Common Stock Issued under Purchase and Equity
	Compensation Plans	275,605		—		1,055		—			(162		)	7,545			8,438
Common Stock Repurchased		(255,629	)	—		—		—			—			(21,287		)	(21,287		)
Cash Dividends Declared ($1.00 per share)		—		—		—		—			(42,788		)	—			(42,788		)
Balance as of June 30, 2017		42,655,954		$	576	$	556,409	$	(25,613	)	$	1,468,328		$	(785,943	)	$	1,213,757

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																	Table 7a
		Three Months Ended							Three Months Ended						Three Months Ended
		June 30, 2018							March 31, 2018						June 30, 2017
		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		$	2.9	$	—	(0.52	)	%	$	3.0	$	—	2.34	%	$	3.6	$	—	0.29	%
Funds Sold		185.2		0.8		1.81			204.7		0.8		1.48		353.5		0.7		0.78
Investment Securities
	Available-for-Sale
	Taxable	1,564.5		9.2		2.35			1,595.1		8.9		2.23		1,683.4		8.4		1.98
	Non-Taxable	583.6		4.0		2.78			604.7		4.1		2.74		658.9		5.4		3.26
	Held-to-Maturity
	Taxable	3,471.7		19.2		2.22			3,631.2		19.8		2.18		3,596.1		18.4		2.05
	Non-Taxable	237.1		1.9		3.17			238.0		1.9		3.18		240.9		2.3		3.88
Total Investment Securities		5,856.9		34.3		2.35			6,069.0		34.7		2.29		6,179.3		34.5		2.23
Loans Held for Sale		14.8		0.2		4.44			14.1		0.1		3.76		23.8		0.2		4.04
Loans and Leases 1
	Commercial and Industrial	1,307.6		12.8		3.92			1,280.9		11.8		3.73		1,251.2		10.9		3.51
	Commercial Mortgage	2,123.5		21.9		4.13			2,096.4		20.6		3.99		1,946.3		18.4		3.80
	Construction	183.4		2.2		4.82			189.4		2.1		4.45		240.0		2.8		4.70
	Commercial Lease Financing	179.4		1.0		2.24			179.6		1.0		2.21		208.0		1.2		2.27
	Residential Mortgage	3,526.9		33.6		3.81			3,478.2		33.3		3.83		3,272.7		31.1		3.80
	Home Equity	1,612.7		15.1		3.76			1,595.4		14.6		3.70		1,445.8		13.1		3.62
	Automobile	573.6		5.7		3.97			541.5		5.6		4.19		474.1		5.9		4.97
	Other 2	455.8		8.9		7.86			442.4		8.6		7.91		379.7		7.6		8.06
Total Loans and Leases		9,962.9		101.2		4.07			9,803.8		97.6		4.02		9,217.8		91.0		3.96
Other		39.8		0.4		3.43			40.7		0.3		2.95		41.0		0.2		2.03
Total Earning Assets 3		16,062.5		136.9		3.41			16,135.3		133.5		3.33		15,819.0		126.6		3.21
Cash and Due from Banks		251.0							228.6						120.8
Other Assets		608.3							593.5						556.1
Total Assets		$	16,921.8						$	16,957.4					$	16,495.9
Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,969.8	1.2		0.16			$	2,978.1	0.8		0.10		$	2,862.7	0.5		0.07
	Savings	5,392.2		3.1		0.23			5,366.3		2.1		0.16		5,376.9		1.6		0.12
	Time	1,705.7		5.2		1.21			1,713.5		4.7		1.11		1,480.5		2.9		0.78
Total Interest-Bearing Deposits		10,067.7		9.5		0.38			10,057.9		7.6		0.31		9,720.1		5.0		0.21
Short-Term Borrowings		21.0		0.1		1.80			19.1		0.1		1.45		36.5		0.1		1.10
Securities Sold Under Agreements to Repurchase		505.1		4.6		3.62			505.3		4.5		3.61		505.3		5.1		3.98
Other Debt		235.7		0.9		1.56			257.1		1.0		1.54		267.9		1.1		1.66
Total Interest-Bearing Liabilities		10,829.5		15.1		0.56			10,839.4		13.2		0.49		10,529.8		11.3		0.43
Net Interest Income				$	121.8						$	120.3					$	115.3
	Interest Rate Spread					2.85		%					2.84	%					2.78	%
	Net Interest Margin					3.04		%					3.00	%					2.92	%
Noninterest-Bearing Demand Deposits		4,641.6							4,662.4						4,533.0
Other Liabilities		209.0							220.0						228.3
Shareholders' Equity		1,241.7							1,235.6						1,204.8
Total Liabilities and Shareholders' Equity		$	16,921.8						$	16,957.4					$	16,495.9
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 21% for 2018 and 35% for 2017, of $1,298,000 for the three months ended
	June 30, 2018, $1,344,000 for the three months ended March 31, 2018, and $3,054,000 for the three months ended June 30, 2017.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis												Table 7b
		Six Months Ended						Six Months Ended
		June 30, 2018						June 30, 2017
		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	2.9	$	—	0.94	%	$	3.5	$	—	0.42	%
Funds Sold		194.9		1.6		1.64		448.3		1.6		0.70
Investment Securities
	Available-for-Sale
	Taxable	1,579.7		18.0		2.29		1,654.6		15.9		1.93
	Non-Taxable	594.1		8.2		2.76		659.8		10.7		3.26
	Held-to-Maturity
	Taxable	3,551.0		39.0		2.20		3,592.9		36.6		2.04
	Non-Taxable	237.6		3.8		3.17		241.4		4.7		3.88
Total Investment Securities		5,962.4		69.0		2.32		6,148.7		67.9		2.21
Loans Held for Sale		14.5		0.3		4.11		27.1		0.6		4.01
Loans and Leases 1
	Commercial and Industrial	1,294.3		24.6		3.83		1,257.4		21.5		3.44
	Commercial Mortgage	2,110.0		42.4		4.06		1,914.1		35.9		3.78
	Construction	186.4		4.3		4.63		249.5		5.7		4.62
	Commercial Lease Financing	179.5		2.0		2.22		208.3		2.3		2.22
	Residential Mortgage	3,502.6		66.9		3.82		3,237.4		62.0		3.83
	Home Equity	1,604.1		29.7		3.73		1,406.8		25.0		3.59
	Automobile	557.7		11.3		4.08		467.9		11.6		5.01
	Other 2	449.1		17.6		7.88		378.2		15.0		7.98
Total Loans and Leases		9,883.7		198.8		4.04		9,119.6		179.0		3.95
Other		40.3		0.7		3.19		40.5		0.4		2.16
Total Earning Assets 3		16,098.7		270.4		3.37		15,787.7		249.5		3.17
Cash and Due from Banks		239.9						126.5
Other Assets		600.9						551.2
Total Assets		$	16,939.5					$	16,465.4
Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,974.0	1.9		0.13		$	2,864.6	0.8		0.06
	Savings	5,379.3		5.3		0.20		5,391.4		2.9		0.11
	Time	1,709.6		9.8		1.16		1,397.5		5.0		0.72
Total Interest-Bearing Deposits		10,062.9		17.0		0.34		9,653.5		8.7		0.18
Short-Term Borrowings		20.0		0.2		1.64		23.1		0.1		0.91
Securities Sold Under Agreements to Repurchase		505.2		9.2		3.61		508.8		10.2		4.01
Other Debt		246.3		1.9		1.55		267.9		2.2		1.66
Total Interest-Bearing Liabilities		10,834.4		28.3		0.52		10,453.3		21.2		0.41
Net Interest Income				$	242.1					$	228.3
	Interest Rate Spread					2.85	%					2.76	%
	Net Interest Margin					3.02	%					2.90	%
Noninterest-Bearing Demand Deposits		4,651.9						4,582.6
Other Liabilities		214.6						238.3
Shareholders' Equity		1,238.6						1,191.2
Total Liabilities and Shareholders' Equity		$	16,939.5					$	16,465.4
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 21% for 2018 and 35% for 2017, of $2,642,000 for the six months ended
	June 30, 2018 and $6,115,000 for the six months ended June 30, 2017.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended June 30, 2018
	Compared to March 31, 2018
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	(0.1	)	$	0.1		$	—
Investment Securities
Available-for-Sale
Taxable	(0.2		)	0.5			0.3
Non-Taxable	(0.1		)	—			(0.1		)
Held-to-Maturity
Taxable	(0.9		)	0.3			(0.6		)
Total Investment Securities	(1.2		)	0.8			(0.4		)
Loans Held for Sale	—			0.1			0.1
Loans and Leases
Commercial and Industrial	0.3			0.7			1.0
Commercial Mortgage	0.3			1.0			1.3
Construction	(0.1		)	0.2			0.1
Residential Mortgage	0.5			(0.2		)	0.3
Home Equity	0.2			0.3			0.5
Automobile	0.4			(0.3		)	0.1
Other 2	0.3			—			0.3
Total Loans and Leases	1.9			1.7			3.6
Other	—			0.1			0.1
Total Change in Interest Income	0.6			2.8			3.4
Change in Interest Expense:
Interest-Bearing Deposits
Demand	—			0.4			0.4
Savings	—			1.0			1.0
Time	—			0.5			0.5
Total Interest-Bearing Deposits	—			1.9			1.9
Securities Sold Under Agreements to Repurchase	—			0.1			0.1
Other Debt	(0.1		)	—			(0.1		)
Total Change in Interest Expense	(0.1		)	2.0			1.9
Change in Net Interest Income	$	0.7		$	0.8		$	1.5
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 8b
	Three Months Ended June 30, 2018
	Compared to June 30, 2017
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	(0.5	)	$	0.6		$	0.1
Investment Securities
Available-for-Sale
Taxable	(0.6		)	1.4			0.8
Non-Taxable	(0.6		)	(0.8		)	(1.4		)
Held-to-Maturity
Taxable	(0.7		)	1.5			0.8
Non-Taxable	—			(0.4		)	(0.4		)
Total Investment Securities	(1.9		)	1.7			(0.2		)
Loans Held for Sale	(0.1		)	0.1			—
Loans and Leases
Commercial and Industrial	0.6			1.3			1.9
Commercial Mortgage	1.8			1.7			3.5
Construction	(0.7		)	0.1			(0.6		)
Commercial Lease Financing	(0.2		)	—			(0.2		)
Residential Mortgage	2.4			0.1			2.5
Home Equity	1.5			0.5			2.0
Automobile	1.1			(1.3		)	(0.2		)
Other 2	1.5			(0.2		)	1.3
Total Loans and Leases	8.0			2.2			10.2
Other	—			0.2			0.2
Total Change in Interest Income	5.5			4.8			10.3
Change in Interest Expense:
Interest-Bearing Deposits
Demand	—			0.7			0.7
Savings	—			1.5			1.5
Time	0.5			1.8			2.3
Total Interest-Bearing Deposits	0.5			4.0			4.5
Short-Term Borrowings	(0.1		)	0.1			—
Securities Sold Under Agreements to Repurchase	—			(0.5		)	(0.5		)
Other Debt	(0.1		)	(0.1		)	(0.2		)
Total Change in Interest Expense	0.3			3.5			3.8
Change in Net Interest Income	$	5.2		$	1.3		$	6.5
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
	Six Months Ended June 30, 2018
	Compared to June 30, 2017
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	(1.3	)	$	1.3		$	—
Investment Securities
Available-for-Sale
Taxable	(0.8		)	2.9			2.1
Non-Taxable	(1.0		)	(1.5		)	(2.5		)
Held-to-Maturity
Taxable	(0.4		)	2.8			2.4
Non-Taxable	(0.1		)	(0.8		)	(0.9		)
Total Investment Securities	(2.3		)	3.4			1.1
Loans Held for Sale	(0.3		)	—			(0.3		)
Loans and Leases
Commercial and Industrial	0.6			2.5			3.1
Commercial Mortgage	3.8			2.7			6.5
Construction	(1.4		)	—			(1.4		)
Commercial Lease Financing	(0.3		)	—			(0.3		)
Residential Mortgage	5.0			(0.1		)	4.9
Home Equity	3.6			1.1			4.7
Automobile	2.0			(2.3		)	(0.3		)
Other 2	2.8			(0.2		)	2.6
Total Loans and Leases	16.1			3.7			19.8
Other	—			0.3			0.3
Total Change in Interest Income	12.2			8.7			20.9
Change in Interest Expense:
Interest-Bearing Deposits
Demand	—			1.1			1.1
Savings	—			2.4			2.4
Time	1.3			3.5			4.8
Total Interest-Bearing Deposits	1.3			7.0			8.3
Short-Term Borrowings	—			0.1			0.1
Securities Sold Under Agreements to Repurchase	(0.1		)	(0.9		)	(1.0		)
Other Debt	(0.2		)	(0.1		)	(0.3		)
Total Change in Interest Expense	1.0			6.1			7.1
Change in Net Interest Income	$	11.2		$	2.6		$	13.8
1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
2 Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits									Table 9
	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,
(dollars in thousands)	2018		2018		2017		2018		2017
Salaries	$	33,269	$	32,704	$	30,553	$	65,973	$	59,978
Incentive Compensation	4,416		5,178		5,125		9,594		10,899
Share-Based Compensation	2,423		2,081		2,879		4,504		5,182
Commission Expense	1,272		954		1,791		2,226		3,627
Retirement and Other Benefits	4,178		4,841		3,722		9,019		8,326
Payroll Taxes	2,568		4,172		2,427		6,740		6,371
Medical, Dental, and Life Insurance	3,820		3,461		3,136		7,281		6,415
Separation Expense	202		1,031		43		1,233		43
Total Salaries and Benefits	$	52,148	$	54,422	$	49,676	$	106,570	$	100,841
Note: Certain prior period information has been reclassified to conform to current presentation.

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances										Table 10
		June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)		2018		2018		2017		2017		2017
Commercial
	Commercial and Industrial	$	1,282,967	$	1,329,096	$	1,279,347	$	1,252,238	$	1,241,953
	Commercial Mortgage	2,169,357		2,097,339		2,103,967		2,050,998		2,009,886
	Construction	185,350		186,530		202,253		232,487		248,030
	Lease Financing	178,598		179,771		180,931		204,240		205,043
Total Commercial		3,816,272		3,792,736		3,766,498		3,739,963		3,704,912
Consumer
	Residential Mortgage	3,548,444		3,505,239		3,466,773		3,366,634		3,317,179
	Home Equity	1,622,314		1,601,698		1,585,455		1,528,353		1,473,123
	Automobile	592,705		558,468		528,474		506,102		484,092
	Other 1	473,588		458,487		449,747		432,904		408,307
Total Consumer		6,237,051		6,123,892		6,030,449		5,833,993		5,682,701
Total Loans and Leases		$	10,053,323	$	9,916,628	$	9,796,947	$	9,573,956	$	9,387,613
Deposits
		June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)		2018		2018		2017		2017		2017
Consumer		$	7,672,435	$	7,665,926	$	7,478,228	$	7,303,546	$	7,278,536
Commercial		5,921,414		5,897,194		5,973,763		6,091,800		5,903,639
Public and Other		1,349,509		1,394,013		1,431,977		1,652,814		1,602,474
Total Deposits		$	14,943,358	$	14,957,133	$	14,883,968	$	15,048,160	$	14,784,649
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
			June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)			2018			2018			2017			2017			2017
Non-Performing Assets
Non-Accrual Loans and Leases
	Commercial
		Commercial and Industrial	$	917		$	986		$	448		$	901		$	175
		Commercial Mortgage	659			1,367			1,398			1,425			1,460
	Total Commercial		1,576			2,353			1,846			2,326			1,635
	Consumer
		Residential Mortgage	6,722			6,725			9,243			9,188			9,337
		Home Equity	3,933			3,890			3,991			4,128			3,405
	Total Consumer		10,655			10,615			13,234			13,316			12,742
Total Non-Accrual Loans and Leases			12,231			12,968			15,080			15,642			14,377
Foreclosed Real Estate			2,926			2,768			1,040			1,393			1,991
Total Non-Performing Assets			$	15,157		$	15,736		$	16,120		$	17,035		$	16,368
Accruing Loans and Leases Past Due 90 Days or More
Commercial
	Commercial and Industrial		$	2		$	—		$	—		$	5		$	—
	Commercial Mortgage		5,680			—			—			—			—
Total Commercial			5,682			—			—			5			—
Consumer
	Residential Mortgage		$	2,281		$	2,927		$	2,703		$	2,933		$	2,269
	Home Equity		3,016			3,013			1,624			1,392			2,343
	Automobile		674			333			886			806			539
	Other 1		1,660			1,895			1,934			1,528			1,859
Total Consumer			7,631			8,168			7,147			6,659			7,010
Total Accruing Loans and Leases Past Due 90 Days or More			$	13,313		$	8,168		$	7,147		$	6,664		$	7,010
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More			$	50,212		$	56,743		$	55,672		$	55,038		$	53,158
Total Loans and Leases			$	10,053,323		$	9,916,628		$	9,796,947		$	9,573,956		$	9,387,613
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.12		%	0.13		%	0.15		%	0.16		%	0.15		%
Ratio of Non-Performing Assets to Total Loans and Leases
	and Foreclosed Real Estate		0.15		%	0.16		%	0.16		%	0.18		%	0.17		%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans
	and Leases and Commercial Foreclosed Real Estate		0.04		%	0.06		%	0.05		%	0.06		%	0.04		%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans
	and Leases and Consumer Foreclosed Real Estate		0.22		%	0.22		%	0.24		%	0.25		%	0.26		%
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		0.28		%	0.24		%	0.24		%	0.25		%	0.25		%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter			$	15,736		$	16,120		$	17,035		$	16,368		$	19,003
Additions			1,949			2,332			2,109			2,212			1,572
Reductions
	Payments		(1,847		)	(1,251		)	(368		)	(199		)	(497		)
	Return to Accrual Status		(126		)	(1,270		)	(1,779		)	(305		)	(1,370		)
	Sales of Foreclosed Real Estate		(421		)	—			(353		)	(951		)	(1,883		)
	Charge-offs/Write-downs		(134		)	(195		)	(524		)	(90		)	(457		)
Total Reductions			(2,528		)	(2,716		)	(3,024		)	(1,545		)	(4,207		)
Balance at End of Quarter			$	15,157		$	15,736		$	16,120		$	17,035		$	16,368
1 Comprised of other revolving credit, installment, and lease financing.

Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses															Table 12
			Three Months Ended									Six Months Ended
			June 30,			March 31,			June 30,			June 30,
(dollars in thousands)			2018			2018			2017			2018			2017
Balance at Beginning of Period			$	114,760		$	114,168		$	111,636		$	114,168		$	110,845
Loans and Leases Charged-Off
	Commercial
		Commercial and Industrial	(485		)	(206		)	(124		)	(691		)	(298		)
	Consumer
		Residential Mortgage	(3		)	(97		)	(506		)	(100		)	(689		)
		Home Equity	(44		)	(91		)	(282		)	(135		)	(645		)
		Automobile	(1,515		)	(2,254		)	(1,512		)	(3,769		)	(3,802		)
		Other 1	(3,614		)	(3,340		)	(3,063		)	(6,954		)	(5,757		)
Total Loans and Leases Charged-Off			(5,661		)	(5,988		)	(5,487		)	(11,649		)	(11,191		)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
		Commercial and Industrial	366			328			265			694			601
		Lease Financing	—			—			1			—			1
	Consumer
		Residential Mortgage	214			220			264			434			368
		Home Equity	451			625			838			1,076			1,346
		Automobile	738			599			607			1,337			1,227
		Other 1	642			683			551			1,325			1,078
Total Recoveries on Loans and Leases Previously Charged-Off			2,411			2,455			2,526			4,866			4,621
Net Loans and Leases Charged-Off			(3,250		)	(3,533		)	(2,961		)	(6,783		)	(6,570		)
Provision for Credit Losses			3,500			4,125			4,250			7,625			8,650
Provision for Unfunded Commitments			—			—			250			—			250
Balance at End of Period 2			$	115,010		$	114,760		$	113,175		$	115,010		$	113,175
Components
Allowance for Loan and Lease Losses			$	108,188		$	107,938		$	106,353		$	108,188		$	106,353
Reserve for Unfunded Commitments			6,822			6,822			6,822			6,822			6,822
Total Reserve for Credit Losses			$	115,010		$	114,760		$	113,175		$	115,010		$	113,175
Average Loans and Leases Outstanding			$	9,962,860		$	9,803,753		$	9,217,779		$	9,883,746		$	9,119,610
Ratio of Net Loans and Leases Charged-Off to
	Average Loans and Leases Outstanding (annualized)		0.13		%	0.15		%	0.13		%	0.14		%	0.15		%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding			1.08		%	1.09		%	1.13		%	1.08		%	1.13		%
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 June 30, 2018
Net Interest Income	$	65,683		$	44,010		$	10,526		$	277		$	120,496
Provision for Credit Losses	3,445			(194		)	—			249			3,500
Net Interest Income After Provision for Credit Losses	62,238			44,204			10,526			28			116,996
Noninterest Income	19,598			5,512			14,745			1,443			41,298
Noninterest Expense	(51,939		)	(19,858		)	(16,400		)	(2,594		)	(90,791		)
Income Before Provision for Income Taxes	29,897			29,858			8,871			(1,123		)	67,503
Provision for Income Taxes	(7,473		)	(6,740		)	(2,338		)	3,766			(12,785		)
Net Income	$	22,424		$	23,118		$	6,533		$	2,643		$	54,718
Total Assets as of June 30, 2018	$	6,142,457		$	3,799,535		$	342,464		$	6,839,706		$	17,124,162
Three Months Ended June 30, 2017
Net Interest Income	$	66,348		$	41,737		$	6,714		$	(2,520	)	$	112,279
Provision for Credit Losses	3,099			(132		)	(6		)	1,289			4,250
Net Interest Income After Provision for Credit Losses	63,249			41,869			6,720			(3,809		)	108,029
Noninterest Income	21,920			5,876			15,247			2,193			45,236
Noninterest Expense	(52,018		)	(18,407		)	(15,295		)	(2,469		)	(88,189		)
Income Before Provision for Income Taxes	33,151			29,338			6,672			(4,085		)	65,076
Provision for Income Taxes	(11,741		)	(10,325		)	(2,469		)	4,121			(20,414		)
Net Income	$	21,410		$	19,013		$	4,203		$	36		$	44,662
Total Assets as of June 30, 2017	$	5,626,767		$	3,658,867		$	307,529		$	7,388,129		$	16,981,292

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
Six Months Ended June 30, 2018
Net Interest Income	$	130,080		$	86,908		$	20,413		$	2,051		$	239,452
Provision for Credit Losses	7,188			(345		)	(60		)	842			7,625
Net Interest Income After Provision for Credit Losses	122,892			87,253			20,473			1,209			231,827
Noninterest Income	38,851			11,154			28,415			6,913			85,333
Noninterest Expense	(106,538		)	(40,190		)	(32,607		)	(5,840		)	(185,175		)
Income Before Provision for Income Taxes	55,205			58,217			16,281			2,282			131,985
Provision for Income Taxes	(13,764		)	(13,564		)	(4,292		)	8,393			(23,227		)
Net Income	$	41,441		$	44,653		$	11,989		$	10,675		$	108,758
Total Assets as of June 30, 2018	$	6,142,457		$	3,799,535		$	342,464		$	6,839,706		$	17,124,162
Six Months Ended June 30, 2017
Net Interest Income	$	131,505		$	83,668		$	13,364		$	(6,386	)	$	222,151
Provision for Credit Losses	6,900			(320		)	(11		)	2,081			8,650
Net Interest Income After Provision for Credit Losses	124,605			83,988			13,375			(8,467		)	213,501
Noninterest Income	42,845			11,314			29,796			17,197			101,152
Noninterest Expense	(104,278		)	(36,762		)	(30,766		)	(4,951		)	(176,757		)
Income Before Provision for Income Taxes	63,172			58,540			12,405			3,779			137,896
Provision for Income Taxes	(22,415		)	(20,581		)	(4,590		)	5,528			(42,058		)
Net Income	$	40,757		$	37,959		$	7,815		$	9,307		$	95,838
Total Assets as of June 30, 2017	$	5,626,767		$	3,658,867		$	307,529		$	7,388,129		$	16,981,292

Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data																	Table 14
	Three Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,
(dollars in thousands, except per share amounts)	2018				2018				2017				2017				2017
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	101,311			$	97,634			$	96,974			$	94,621			$	90,909
Income on Investment Securities
Available-for-Sale	12,380				12,141				11,866				11,987				11,835
Held-to-Maturity	20,711				21,296				21,782				20,334				19,918
Deposits	(4		)		18				3				5				2
Funds Sold	846				757				717				1,579				696
Other	341				300				271				235				208
Total Interest Income	135,585				132,146				131,613				128,761				123,568
Interest Expense
Deposits	9,459				7,581				6,980				6,663				4,998
Securities Sold Under Agreements to Repurchase	4,617				4,564				4,664				4,664				5,079
Funds Purchased	83				53				81				—				39
Short-Term Borrowings	13				16				—				—				64
Other Debt	917				976				1,118				1,117				1,109
Total Interest Expense	15,089				13,190				12,843				12,444				11,289
Net Interest Income	120,496				118,956				118,770				116,317				112,279
Provision for Credit Losses	3,500				4,125				4,250				4,000				4,250
Net Interest Income After Provision for Credit Losses	116,996				114,831				114,520				112,317				108,029
Noninterest Income
Trust and Asset Management	11,356				11,181				11,105				11,050				11,796
Mortgage Banking	2,179				2,145				2,593				3,237				3,819
Service Charges on Deposit Accounts	6,865				7,129				8,053				8,188				8,009
Fees, Exchange, and Other Service Charges	14,400				14,333				13,784				13,764				13,965
Investment Securities Gains (Losses), Net	(1,702		)		(666		)		(617		)		(566		)		(520		)
Annuity and Insurance	1,847				1,206				1,273				1,429				2,161
Bank-Owned Life Insurance	1,796				1,842				1,609				1,861				1,550
Other	4,557				6,865				4,055				3,447				4,456
Total Noninterest Income	41,298				44,035				41,855				42,410				45,236
Noninterest Expense
Salaries and Benefits	52,148				54,422				51,698				51,190				49,676
Net Occupancy	8,588				8,534				8,510				7,727				8,131
Net Equipment	5,845				5,527				5,454				5,417				5,706
Data Processing	4,563				3,891				4,310				3,882				3,881
Professional Fees	2,546				2,773				3,266				3,044				2,592
FDIC Insurance	2,182				2,157				2,253				2,107				2,097
Other	14,919				17,080				16,845				15,231				16,106
Total Noninterest Expense	90,791				94,384				92,336				88,598				88,189
Income Before Provision for Income Taxes	67,503				64,482				64,039				66,129				65,076
Provision for Income Taxes	12,785				10,442				21,086				20,248				20,414
Net Income	$	54,718			$	54,040			$	42,953			$	45,881			$	44,662
Basic Earnings Per Share	$	1.31			$	1.29			$	1.02			$	1.09			$	1.05
Diluted Earnings Per Share	$	1.30			$	1.28			$	1.01			$	1.08			$	1.05
Balance Sheet Totals
Loans and Leases	$	10,053,323			$	9,916,628			$	9,796,947			$	9,573,956			$	9,387,613
Total Assets	17,124,162				17,136,030				17,089,052				17,268,302				16,981,292
Total Deposits	14,943,358				14,957,133				14,883,968				15,048,160				14,784,649
Total Shareholders' Equity	1,247,717				1,241,193				1,231,868				1,227,893				1,213,757
Performance Ratios
Return on Average Assets	1.30			%	1.29			%	1.00			%	1.07			%	1.09			%
Return on Average Shareholders' Equity	17.68				17.74				13.85				14.89				14.87
Efficiency Ratio 1	56.12				57.91				57.49				55.82				55.99
Net Interest Margin 2	3.04				3.00				2.98				2.92				2.92
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.
Note: Certain prior period information has been reclassified to conform to current presentation.

Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends													Table 15
	Five Months Ended				Year Ended
($ in millions; jobs in thousands)	May 31, 2018				December 31, 2017						December 31, 2016
Hawaii Economic Trends
State General Fund Revenues 1	$	3,003.1	12.1	%	$	6,485.5			4.3	%	$	6,215.4		3.6	%
General Excise and Use Tax Revenue 1	$	1,432.5	3.5	%	$	3,349.8			4.5	%	$	3,205.7		2.0	%
Jobs 2	672.8				668.2						669.4
									June 30,		December 31,
(spot rates)									2018		2017			2016
Unemployment 3
Statewide, seasonally adjusted									2.1	%	2.1		%	2.9	%
Oahu									2.6		1.7			2.4
Island of Hawaii									3.4		2.0			3.1
Maui									2.7		1.8			2.7
Kauai									2.9		1.7			2.8
					June 30,				December 31,
(percentage change, except months of inventory)					2018				2017		2016			2015
Housing Trends (Single Family Oahu) 4
Median Home Price					3.9			%	2.7	%	5.0		%	3.7	%
Home Sales Volume (units)					(1.6		)	%	6.3	%	6.5		%	5.2	%
Months of Inventory					2.7				2.1		2.5			2.6
					Monthly Visitor Arrivals,						Percentage Change
(in thousands)					Not Seasonally Adjusted						from Previous Year
Tourism 5
May 31, 2018									804.1					7.0
April 30, 2018									803.0					6.6
March 31, 2018									903.6					12.5
February 28, 2018									778.6					10.3
January 31, 2018									796.5					5.4
December 31, 2017									880.4					6.3
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									706.1					2.5
January 31, 2017									756.0					4.9
December 31, 2016									828.2					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