Bank of Hawaii (BOH) 8-K Results of Operations and Financial Condition

Exhibit 99.1

	Media Inquiries Stafford Kiguchi Telephone: 808-694-8580 Mobile: 808-265-6367 E-mail: Stafford.Kiguchi@boh.com
	Investor/Analyst Inquiries Cindy Wyrick Telephone: 808-694-8430 E-mail: Cindy.Wyrick @boh.com

Bank of Hawaii Corporation 2007 Financial Results

·Diluted Earnings Per Share for 2007 Increases to $3.69

·Net Income for 2007 Increases to $183.7 Million

·Board of Directors Declares Dividend of $0.44 Per Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (January 28, 2008) — Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share for the fourth quarter of 2007 of $0.83, down $0.18 or 17.8 percent from $1.01 per diluted share for the same quarter last year.  Net income in the fourth quarter of 2007 was $40.9 million, down $10.1 million or 19.7 percent from net income of $50.9 million in the fourth quarter last year.  Results for the fourth quarter of 2007 were significantly reduced by pretax charges of $5.6 million, or $0.07 per diluted share, which represent the Company’s share of litigation liabilities, as a member bank of Visa U.S.A. Inc., related to antitrust lawsuits.   Results for the fourth quarter of 2006 were increased by tax accrual adjustments of $6.2 million, or $0.12 per diluted share, for tax matters that were resolved during the quarter.

Diluted earnings per share for the full year of 2007 were $3.69 up $0.17 or 4.8 percent from diluted earnings per share of $3.52 in 2006.  Net income for the year was $183.7 million, up $3.3 million or 1.9 percent from net income of $180.4 million in the previous year.  The return on average assets in 2007 was 1.75 percent, down slightly from 1.76 percent in 2006.  The return on average equity for the year was 25.15 percent, down from 25.90 percent in 2006.

“The Bank of Hawaii Corporation’s financial performance for 2007 was solid,” said Allan R. Landon, Chairman and CEO.  “The Company achieved its primary performance objectives for 2007 in spite of the increased expenses recognized in the fourth quarter.  Our discipline in the market has served us well.   The Company’s credit quality and balance sheet remain strong.  The Hawaii economy appears stronger than other regions of the U. S. economy and, as we begin 2008, the Bank of Hawaii is well positioned to address the challenges ahead.”

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130 Merchant Street · PO Box 2900 · Honolulu HI 96846-0000 · Fax 808-537-8440 · Website www.boh.com

Bank of Hawaii Corporation 2007 Financial Results

Financial Highlights

Net interest income, on a taxable equivalent basis, for the fourth quarter of 2007 was $99.7 million, down $0.7 million from net interest income of $100.4 million in the fourth quarter of 2006 and up $0.9 million from net interest income of $98.8 million in the third quarter of 2007.  The increase in net interest income in the fourth quarter reflects an increase in net interest margin partially offset by lower levels of earning assets.  Net interest income, on a taxable equivalent basis, for the full year of 2007 was $395.9 million, down $7.4 million from $403.3 million in 2006 primarily due to increased funding costs and a change in the funding mix as some customers shifted deposit balances into higher yielding accounts.  Analyses of changes in net interest income are included in Tables 6a, 6b and 6c.

The net interest margin was 4.12 percent for the fourth quarter of 2007, a 3 basis point decrease from 4.15 percent in the fourth quarter of 2006 and a 9 basis point increase from 4.03 percent in the third quarter of 2007.  The net interest margin for the full year of 2007 was 4.08 percent, a 17 basis point decrease from 4.25 percent in 2006.

Results for the fourth quarter of 2007 included a provision for credit losses of $5.4 million compared to $3.1 million in the fourth quarter of 2006 and $4.1 million in the third quarter of 2007.  The provision for credit losses equaled net charge offs in the fourth quarter of 2007 and the prior comparable quarters.  The provision for credit losses for the full year of 2007 was $15.5 million compared to $10.8 million in 2006.  Increased provisions primarily relate to charge offs of automotive and unsecured consumer loans.

Noninterest income was $60.3 million for the fourth quarter of 2007, an increase of $6.7 million or 12.6 percent compared to noninterest income of $53.5 million in the fourth quarter of 2006 and down $1.0 million or 1.6 percent compared to noninterest income of $61.2 million in the third quarter of 2007.  The increase compared to the same quarter last year was the result of growth in nearly all categories of noninterest revenue.  Fourth quarter 2007 revenue included a gain of $3.1 million on the sale of unused real estate.  The decrease compared to the previous quarter was largely due to a seasonal reduction in contingent insurance commissions of $2.9 million and $1.9 million due to rebalancing securities used to hedge the fair value of mortgage servicing rights.  Noninterest income for the full year of 2007 was $240.5 million, up $24.3 million or 11.2 percent from noninterest income of $216.2 million in 2006.

Noninterest expense was $92.0 million in the fourth quarter of 2007, up $10.4 million or 12.8 percent from noninterest expense of $81.6 million in the same quarter last year and up $10.6 million or 13.0 percent from $81.5 million in the previous quarter.  The increase in noninterest expense compared to the prior quarters was largely due to the previously mentioned Visa charges of $5.6 million, $1.7 million due to a fraud loss, $600 thousand of professional fees, and an increase in personnel expense.  An analysis of salary and benefit expenses is included in Table 7.  Noninterest expense for the full year of 2007 was $335.4 million, up $14.4 million or 4.5 percent from noninterest expense of $321.0 million in 2006.

The efficiency ratio for the fourth quarter of 2007 was 57.61 percent, up from 53.08 percent in the same quarter last year and from 50.97 percent in the previous quarter.  The efficiency ratio for the full year of 2007 was 52.78 percent compared with 51.87 percent during the full year of 2006.

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The effective tax rate for the fourth quarter of 2007 was 34.37 percent compared to 26.19 percent during the same quarter last year and 35.68 percent in the previous quarter.  The lower rate in the fourth quarter of 2006 was primarily due to the previously discussed tax accrual adjustments.  The effective tax rate for the full year of 2007 was 35.45 percent compared to 37.17 percent during 2006.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury.  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 11a and 11b.

Asset Quality

Credit quality remained strong and stable throughout 2007 reflecting disciplined commercial and retail underwriting and portfolio management and the stable economic environment in the market.

Non-accrual loans and leases were $5.1 million at December 31, 2007, down from $5.9 million at December 31, 2006 and up from $4.2 million at September 30, 2007.  As a percentage of total loans and leases, non-accrual loans remain at historic lows of 0.08 percent at December 31, 2007.

The quarterly increase of $0.9 million in non-accrual loans was primarily in the home equity portfolio.  The credit risk profile of the home equity portfolio is strong. The non-accrual home equity loans have a current weighted average loan-to-value ratio of 61 percent.

Net charge-offs during the fourth quarter of 2007 were $5.4 million or 0.33 percent annualized of total average loans and leases compared to $3.1 million in the fourth quarter last year and $4.1 million in the third quarter.  The increase in the fourth quarter reflects higher net losses in consumer installment and unsecured revolving credit products, consistent with seasonal trends and the continued inflationary pressures on consumer income.

Full year 2007 net charges-offs of $15.5 million were 0.24 percent of total average loans and leases, and were comprised of gross charge-offs of $24.9 million and partially offset by recoveries of $9.4 million.  Net charge-offs for the full year of 2006 were $10.8 million, or 0.17 percent of total average loans and leases, and were comprised of gross charge-offs of $20.7 million partially offset by recoveries of $9.9 million.

The allowance for loan and lease losses was $91.0 million at December 31, 2007, unchanged from December 31, 2006 and from September 30, 2007.  The ratio of the allowance for loan and lease losses to total loans was 1.38 percent at December 31, 2007, up from 1.37 percent at December 31, 2006 and unchanged from September 30, 2007.  The reserve for unfunded commitments at December 31, 2007 was $5.2 million, unchanged from December 31, 2006 and from September 30, 2007.  Details of charge-offs, recoveries and the components of the total reserve for credit losses are summarized in Table 10.

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Other Financial Highlights

Total assets were $10.47 billion at December 31, 2007, down $99 million from $10.57 billion at December 31, 2006 and down $77 million from $10.55 billion at September 30, 2007.  Total loans and leases were $6.58 billion at December 31, 2007, down $42 million from $6.62 billion at December 31, 2006 and down $19 million from $6.60 billion at September 30, 2007. Average loans and leases were $6.58 billion during the fourth quarter of 2007, up $79 million from $6.50 billion during the fourth quarter last year and up $11 million from $6.57 billion during the previous quarter.

Total commercial loans were $2.38 billion at December 31, 2007, down $84 million from $2.46 billion at December 31, 2006 and down $46 million from $2.43 billion at September 30, 2007.  The decreases were largely driven by the Company’s decision to exit commercial credits and by several large commercial paydowns.  During 2007, the Company exited a total of $80.0 million in commercial credits, including $20.0 million in construction loans.  Total consumer loans were $4.20 billion at December 31, 2007, up $41 million from $4.16 billion at December 31, 2006 and up $27 million from $4.17 billion at September 30, 2007.  Loan and lease portfolio balances are summarized in Table 8.

Total deposits at December 31, 2007 were $7.94 billion, down $81 million from $8.02 billion at December 31, 2006 and up $67 million from $7.88 billion at September 30, 2007.  Average deposits were $7.80 billion during the fourth quarter of 2007, up $81 million from the fourth quarter last year and down $213 million from $8.02 billion during the previous quarter.  The decrease in average deposits compared to the previous quarter was largely due to short-term commercial deposits received near the end of the second quarter that were largely withdrawn near the end of the third quarter.

During the fourth quarter of 2007, the Company repurchased 591.1 thousand shares of common stock at a total cost of $30.0 million under its share repurchase program.  The average cost was $50.79 per share repurchased.  From the beginning of the share repurchase program in July 2001 through December 31, 2007, the Company has repurchased 44.3 million shares and returned nearly $1.6 billion to shareholders at an average cost of $35.08 per share.  From January 1, 2008 through January 25, 2008, the Company repurchased an additional 175.0 thousand shares of common stock at an average cost of $46.64 per share.  Remaining buyback authority under the share repurchase program was $86.2 million at January 25, 2008.

At December 31, 2007, the Tier 1 leverage ratio was 7.04 percent compared to 7.06 percent at December 31, 2006 and 6.95 percent at September 30, 2007.

The Company’s Board of Directors has declared a quarterly cash dividend of $0.44 per share on the Company’s outstanding shares.  The dividend will be payable on March 14, 2008 to shareholders of record at the close of business on February 29, 2008.

2007+ Plan

The Company reaffirmed its 2007+ Plan, which emphasizes value-enhancing growth, integration of service delivery and business units, development of people, enhancement of the Bank of Hawaii brand, and discipline in managing risk and financial performance.  Financial objectives include an annual return on assets above 1.7 percent, a return on equity above 25 percent, a 7 percent leverage ratio, positive operating leverage, and an efficiency ratio nearing 50 percent.

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Conference Call Information

The Company will review its 2007 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 web site, www.boh.com.  The conference call number for participants in the United States is 800-706-7748.  International participants should call 617-614-3473.  No passcode is required.  A replay of the conference call will be available for one week beginning Monday, January 28, 2008 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the number 87580740 when prompted.  A replay will also be available via the Investor Relations link of the Company’s web site.

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, 2006, 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 (Unaudited)	Table 1

	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
(dollars in thousands, except per share amounts)	2007			2007			2006			2007			2006
For the Period:
Net Interest Income	$	99,447		$	98,556		$	100,205		$	395,018		$	402,613
Total Noninterest Income	60,257			61,242			53,516			240,487			216,176
Total Noninterest Expense	92,002			81,450			81,597			335,407			320,962
Net Income	40,860			47,779			50,913			183,703			180,359
Basic Earnings Per Share	0.84			0.98			1.03			3.75			3.59
Diluted Earnings Per Share	0.83			0.96			1.01			3.69			3.52
Dividends Declared Per Share	0.44			0.41			0.41			1.67			1.52
Net Income to Average Total Assets	1.55		%	1.79		%	1.94		%	1.75		%	1.76		%
Net Income to Average Shareholders’ Equity	21.51			26.02			28.56			25.15			25.90
Net Interest Margin (1)	4.12			4.03			4.15			4.08			4.25
Operating Leverage (2)	(13.59		)	1.65			(6.86		)	0.76			3.13
Efficiency Ratio (3)	57.61			50.97			53.08			52.78			51.87
Average Assets	$	10,446,262		$	10,576,565		$	10,391,402		$	10,472,097		$	10,241,442
Average Loans and Leases	6,581,183			6,570,261			6,501,868			6,561,584			6,369,200
Average Deposits	7,802,750			8,015,594			7,721,584			7,887,500			7,731,051
Average Shareholders’ Equity	753,499			728,372			707,149			730,330			696,299
Average Shareholders’ Equity to Average Assets	7.21		%	6.89		%	6.81		%	6.97		%	6.80		%
Market Price Per Share of Common Stock:
Closing	$	51.14		$	52.85		$	53.95		$	51.14		$	53.95
High	55.94			55.84			54.59			55.94			55.15
Low	47.56			46.05			47.54			46.05			47.00

	December 31,			September 30,			December 31,
	2007			2007			2006 (4)
As of Period End:
Loans and Leases	$	6,580,861		$	6,599,915		$	6,623,167
Total Assets	10,472,942			10,549,595			10,571,815
Total Deposits	7,942,372			7,875,166			8,023,394
Long-Term Debt	235,371			235,350			260,288
Total Shareholders’ Equity	750,255			731,697			719,420
Non-Performing Assets	$	5,286		$	4,260		$	6,407
Allowance to Loans and Leases Outstanding	1.38		%	1.38		%	1.37		%
Dividend Payout Ratio (5)	44.53			42.41			42.34
Leverage Ratio	7.04			6.95			7.06
Book Value Per Common Share	$	15.44		$	14.91		$	14.45
Full-Time Equivalent Employees	2,594			2,572			2,586
Branches and Offices	84			84			86

(1)	Net interest margin is defined as net interest income, on a taxable equivalent basis, as a percentage of average earning assets.
(2)	Operating leverage is defined as the percentage change in income before provision for credit losses and the provision for income taxes. Three months ended measures are presented on a linked quarter basis.
(3)	Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
(4)	Dividend payout ratio was corrected from 42.11% and leverage ratio from 7.13%.
(5)	Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.

Bank of Hawaii Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited) Table 2

	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,
(dollars in thousands, except per share amounts)	2007		2007		2006		2007		2006
Interest Income
Interest and Fees on Loans and Leases	$	111,270	$	112,787	$	111,649	$	446,381	$	425,473
Income on Investment Securities
Trading	814		1,114		—		4,903		—
Available-for-Sale	33,591		33,486		32,807		129,601		126,817
Held-to-Maturity	3,440		3,616		4,282		14,935		18,255
Deposits	309		1,086		63		1,549		211
Funds Sold	356		1,103		406		3,050		767
Other	395		364		333		1,456		1,149
Total Interest Income	150,175		153,556		149,540		601,875		572,672
Interest Expense
Deposits	33,158		37,613		30,924		137,847		103,677
Securities Sold Under Agreements to Repurchase	11,754		11,726		12,538		47,031		42,189
Funds Purchased	1,936		1,654		1,689		5,965		8,504
Short-Term Borrowings	91		87		106		356		318
Long-Term Debt	3,789		3,920		4,078		15,658		15,371
Total Interest Expense	50,728		55,000		49,335		206,857		170,059
Net Interest Income	99,447		98,556		100,205		395,018		402,613
Provision for Credit Losses	5,443		4,070		3,143		15,507		10,758
Net Interest Income After Provision for Credit Losses	94,004		94,486		97,062		379,511		391,855
Noninterest Income
Trust and Asset Management	15,812		15,146		14,949		62,926		58,740
Mortgage Banking	2,027		3,848		2,612		11,725		10,562
Service Charges on Deposit Accounts	12,302		11,919		11,206		46,260		41,756
Fees, Exchange, and Other Service Charges	16,743		16,465		15,775		65,825		62,441
Investment Securities Gains, Net	105		789		153		1,485		172
Insurance	4,629		7,446		3,965		23,177		20,388
Other	8,639		5,629		4,856		29,089		22,117
Total Noninterest Income	60,257		61,242		53,516		240,487		216,176
Noninterest Expense
Salaries and Benefits	45,928		44,944		42,727		180,865		176,457
Net Occupancy	10,300		10,267		9,959		40,073		38,976
Net Equipment	4,745		4,871		5,012		19,274		20,127
Professional Fees	3,695		2,369		1,189		11,206		6,854
Other	27,334		18,999		22,710		83,989		78,548
Total Noninterest Expense	92,002		81,450		81,597		335,407		320,962
Income Before Provision for Income Taxes	62,259		74,278		68,981		284,591		287,069
Provision for Income Taxes	21,399		26,499		18,068		100,888		106,710
Net Income	$	40,860	$	47,779	$	50,913	$	183,703	$	180,359
Basic Earnings Per Share	$	0.84	$	0.98	$	1.03	$	3.75	$	3.59
Diluted Earnings Per Share	$	0.83	$	0.96	$	1.01	$	3.69	$	3.52
Dividends Declared Per Share	$	0.44	$	0.41	$	0.41	$	1.67	$	1.52
Basic Weighted Average Shares	48,525,708		48,913,293		49,493,213		49,033,208		50,176,685
Diluted Weighted Average Shares	49,301,825		49,663,049		50,378,519		49,833,546		51,178,943

Bank of Hawaii Corporation and Subsidiaries

Consolidated Statements of Condition (Unaudited) Table 3

	December 31,			September 30,			December 31,
(dollars in thousands)	2007			2007			2006
Assets
Interest-Bearing Deposits	$	4,870		$	35,471		$	4,990
Funds Sold	15,000			—			50,000
Investment Securities
Trading	67,286			92,831			—
Available-for-Sale
Portfolio	1,912,764			1,935,383			1,846,742
Pledged as Collateral	650,426			656,599			751,135
Held-to-Maturity (Fair Value of $287,644; $299,191; and $360,719)	292,577			307,653			371,344
Loans Held for Sale	12,341			8,016			11,942
Loans and Leases	6,580,861			6,599,915			6,623,167
Allowance for Loan and Lease Losses	(90,998		)	(90,998		)	(90,998		)
Net Loans and Leases	6,489,863			6,508,917			6,532,169
Total Earning Assets	9,445,127			9,544,870			9,568,322
Cash and Noninterest-Bearing Deposits	368,402			344,267			398,342
Premises and Equipment	117,177			120,318			125,925
Customers’ Acceptances	1,112			1,967			1,230
Accrued Interest Receivable	45,261			52,652			49,284
Foreclosed Real Estate	184			105			407
Mortgage Servicing Rights	27,588			28,407			19,437
Goodwill	34,959			34,959			34,959
Other Assets	433,132			422,050			373,909
Total Assets	$	10,472,942		$	10,549,595		$	10,571,815
Liabilities
Deposits
Noninterest-Bearing Demand	$	1,935,639		$	1,894,933		$	1,993,794
Interest-Bearing Demand	1,634,675			1,530,982			1,642,375
Savings	2,630,471			2,711,169			2,690,846
Time	1,741,587			1,738,082			1,696,379
Total Deposits	7,942,372			7,875,166			8,023,394
Funds Purchased	75,400			191,900			60,140
Short-Term Borrowings	10,427			10,749			11,058
Securities Sold Under Agreements to Repurchase	1,029,340			1,087,511			1,047,824
Long-Term Debt	235,371			235,350			260,288
Banker’s Acceptances	1,112			1,967			1,230
Retirement Benefits Payable	29,984			41,125			48,309
Accrued Interest Payable	20,476			18,526			22,718
Taxes Payable and Deferred Taxes	278,218			271,089			277,202
Other Liabilities	99,987			84,515			100,232
Total Liabilities	9,722,687			9,817,898			9,852,395
Shareholders’ Equity
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: December 2007 - 56,995,447 / 48,589,645; September 2007 - 57,005,602 / 49,068,275; and December 2006 - 56,848,609 / 49,777,654)	567			567			566
Capital Surplus	484,790			482,586			475,178
Accumulated Other Comprehensive Loss	(5,091		)	(28,359		)	(39,084		)
Retained Earnings	688,638			671,451			630,660
Treasury Stock, at Cost (Shares: December 2007 - 8,405,802; September 2007 - 7,937,327; and December 2006 - 7,070,955)	(418,649		)	(394,548		)	(347,900		)
Total Shareholders’ Equity	750,255			731,697			719,420
Total Liabilities and Shareholders’ Equity	$	10,472,942		$	10,549,595		$	10,571,815

Bank of Hawaii Corporation and Subsidiaries

Consolidated Statements of Shareholders’ Equity (Unaudited) Table 4

									Accum.
									Other
									Compre-						Deferred							Compre-
				Common		Capital			hensive			Retained			Stock				Treasury			hensive
(dollars in thousands)	Total			Stock		Surplus			Loss			Earnings			Grants				Stock			Income
Balance as of December 31, 2006	$	719,420		$	566	$	475,178		$	(39,084	)	$	630,660		$		—		$	(347,900	)
Cumulative-Effect Adjustment of a Change in Accounting Principle,
Net of Tax:
SFAS No. 156, “Accounting for Servicing of Financial Assets, an amendment of FASB Statement No. 140”	5,126			—		—			5,279			(153		)	—				—
FSP No. 13-2, “Accounting for a Change or Projected Change in the Timing of Cash Flows Relating to Income Taxes Generated by a Leveraged Lease Transaction”	(27,106		)	—		—			—			(27,106		)	—				—
FIN 48, “Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109”	(7,247		)	—		—			—			(7,247		)	—				—
Comprehensive Income:
Net Income	183,703			—		—			—			183,703			—				—			$			183,703
Other Comprehensive Income, Net of Tax:
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	20,824			—		—			20,824			—			—				—			20,824
Gain Arising During Period for Defined Benefit Plans	7,034			—		—			7,034			—			—				—			7,034
Amortization of Prior Service Credit and Net Actuarial Loss	856			—		—			856			—			—				—			856
Total Comprehensive Income																						$			212,417
Share-Based Compensation	5,724			—		5,724			—			—			—				—
Net Tax Benefits related to Share-Based Compensation	3,491			—		3,491			—			—			—				—
Common Stock Issued under Purchase and Equity Compensation Plans (749,327 shares)	20,457			1		397			—			(8,848		)	—				28,907
Common Stock Repurchased (1,933,964 shares)	(99,656		)	—		—			—			—			—				(99,656		)
Cash Dividends Paid	(82,371		)	—		—			—			(82,371		)	—				—
Balance as of December 31, 2007	$	750,255		$	567	$	484,790		$	(5,091	)	$	688,638		$		—		$	(418,649	)
Balance as of December 31, 2005	$	693,352		$	565	$	473,338		$	(47,818	)	$	546,591		$	(11,080		)	$	(268,244	)
Comprehensive Income:
Net Income	180,359			—		—			—			180,359			—				—			$	180,359
Other Comprehensive Income, Net of Tax:
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	(196		)	—		—			(196		)	—			—				—			(196				)
Change in Minimum Pension Liability Adjustments	1,972			—		—			1,972			—			—				—			1,972
Total Comprehensive Income																						$		182,135
Adjustment to Initially Apply FASB Statement No. 158, Net of Tax	6,958			—		—			6,958			—			—				—
Share-Based Compensation	4,956			—		4,956			—			—			—				—
Net Tax Benefits related to Share-Based Compensation	7,634			—		7,634			—			—			—				—
Common Stock Issued under Purchase and Equity Compensation Plans (1,044,951 shares)	30,859			1		(10,750		)	—			(19,543		)	11,080				50,071
Common Stock Repurchased (2,540,130 shares)	(129,727		)	—		—			—			—			—				(129,727		)
Cash Dividends Paid	(76,747		)	—		—			—			(76,747		)	—				—
Balance as of December 31, 2006	$	719,420		$	566	$	475,178		$	(39,084	)	$	630,660		$		—		$	(347,900	)

Bank of Hawaii Corporation and Subsidiaries

Average Balances and Interest Rates - Taxable Equivalent Basis (Unaudited) Table 5a

	Three Months Ended						Three Months Ended						Three Months Ended
	December 31, 2007						September 30, 2007 (1)						December 31, 2006 (1)
	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	$	24.1	$	0.3	5.03	%	$	79.8	$	1.1	5.35	%	$	5.7	$	0.1	4.43	%
Funds Sold	33.3		0.4		4.19		86.2		1.1		5.01		30.5		0.4		5.21
Investment Securities
Trading	81.0		0.8		4.02		111.3		1.1		4.00		—		—		—
Available-for-Sale	2,568.2		33.9		5.27		2,556.7		33.7		5.28		2,657.8		33.0		4.97
Held-to-Maturity	300.4		3.4		4.58		318.0		3.6		4.55		384.7		4.3		4.45
Loans Held for Sale	8.0		0.1		6.52		7.3		0.1		6.78		10.0		0.2		6.79
Loans and Leases (2)
Commercial and Industrial	1,041.2		19.1		7.28		1,048.9		19.7		7.45		1,025.8		19.6		7.59
Commercial Mortgage	633.4		10.8		6.79		627.7		10.8		6.82		608.9		10.7		6.97
Construction	238.6		4.5		7.50		262.2		5.3		8.00		236.4		4.9		8.24
Residential Mortgage	2,508.8		38.5		6.15		2,502.3		38.5		6.15		2,474.6		37.6		6.08
Home Equity	961.5		17.8		7.33		946.2		18.3		7.67		943.8		18.2		7.66
Other Revolving Credit and Installment	703.3		16.1		9.06		685.8		16.2		9.35		697.3		16.1		9.18
Lease Financing	494.4		4.3		3.47		497.2		3.9		3.15		515.1		4.3		3.31
Total Loans and Leases	6,581.2		111.1		6.72		6,570.3		112.7		6.82		6,501.9		111.4		6.82
Other	79.5		0.4		1.99		79.4		0.4		1.83		79.4		0.3		1.68
Total Earning Assets (3)	9,675.7		150.4		6.19		9,809.0		153.8		6.25		9,670.0		149.7		6.17
Cash and Noninterest-Bearing Deposits	284.9						285.3						272.9
Other Assets	485.7						482.3						448.5
Total Assets	$	10,446.3					$	10,576.6					$	10,391.4
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	1,542.5	3.2		0.81		$	1,557.7	4.0		1.01		$	1,577.6	4.2		1.06
Savings	2,679.7		12.9		1.92		2,837.5		15.9		2.23		2,626.4		11.1		1.68
Time	1,731.7		17.0		3.91		1,742.0		17.7		4.03		1,650.0		15.6		3.74
Total Interest-Bearing Deposits	5,953.9		33.1		2.21		6,137.2		37.6		2.43		5,854.0		30.9		2.10
Short-Term Borrowings	175.2		2.0		4.53		138.8		1.8		4.91		135.0		1.8		5.21
Securities Sold Under Agreements to Repurchase	1,052.8		11.8		4.40		1,016.5		11.7		4.54		1,091.6		12.5		4.52
Long-Term Debt	235.4		3.8		6.43		251.9		3.9		6.21		264.7		4.1		6.15
Total Interest-Bearing Liabilities	7,417.3		50.7		2.71		7,544.4		55.0		2.89		7,345.3		49.3		2.66
Net Interest Income			$	99.7					$	98.8					$	100.4
Interest Rate Spread					3.48	%					3.36	%					3.51	%
Net Interest Margin					4.12	%					4.03	%					4.15	%
Noninterest-Bearing Demand Deposits	1,848.9						1,878.4						1,867.6
Other Liabilities	426.6						425.4						471.4
Shareholders’ Equity	753.5						728.4						707.1
Total Liabilities and Shareholders’ Equity	$	10,446.3					$	10,576.6					$	10,391.4

(1)	Certain prior period information has been reclassified to conform to current presentation.
(2)	Non-performing loans and leases are included in the respective category of average loans and leases outstanding. Income, if any, on such loans and leases is recognized on a cash basis.
(3)	Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $237,000, $237,000, and $186,000 for the three months ended December 31, 2007, September 30, 2007, and December 31, 2006, respectively.

Bank of Hawaii Corporation and Subsidiaries

Average Balances and Interest Rates - Taxable Equivalent Basis (Unaudited) Table 5b

	Year Ended						Year Ended
	December 31, 2007						December 31, 2006
	Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits	$	29.3	$	1.5	5.28	%	$	5.4	$	0.2	3.92	%
Funds Sold	60.3		3.1		5.06		15.2		0.8		5.06
Investment Securities
Trading	122.6		4.9		4.00		—		—		—
Available-for-Sale	2,516.7		130.5		5.19		2,598.8		127.5		4.91
Held-to-Maturity	329.5		14.9		4.53		417.6		18.3		4.37
Loans Held for Sale	9.0		0.6		6.43		9.7		0.6		6.38
Loans and Leases (1)
Commercial and Industrial	1,054.8		78.1		7.40		987.8		72.7		7.36
Commercial Mortgage	624.5		42.5		6.81		598.5		40.3		6.73
Construction	250.1		19.6		7.86		197.3		16.2		8.19
Residential Mortgage	2,501.7		153.6		6.14		2,450.4		146.3		5.97
Home Equity	947.9		71.6		7.56		922.2		68.4		7.42
Other Revolving Credit and Installment	693.9		64.0		9.22		711.6		64.7		9.09
Lease Financing	488.7		16.4		3.36		501.4		16.3		3.25
Total Loans and Leases	6,561.6		445.8		6.79		6,369.2		424.9		6.67
Other	79.4		1.5		1.83		79.4		1.1		1.45
Total Earning Assets (2)	9,708.4		602.8		6.21		9,495.3		573.4		6.04
Cash and Noninterest-Bearing Deposits	288.9						301.2
Other Assets	474.8						444.9
Total Assets	$	10,472.1					$	10,241.4
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	1,570.7	15.4		0.98		$	1,615.5	15.6		0.96
Savings	2,696.8		54.0		2.00		2,680.3		38.3		1.43
Time	1,728.4		68.4		3.96		1,484.8		49.8		3.35
Total Interest-Bearing Deposits	5,995.9		137.8		2.30		5,780.6		103.7		1.79
Short-Term Borrowings	127.9		6.3		4.94		177.7		8.8		4.97
Securities Sold Under Agreements to Repurchase	1,044.8		47.0		4.50		932.4		42.2		4.52
Long-Term Debt	251.9		15.8		6.22		249.8		15.4		6.15
Total Interest-Bearing Liabilities	7,420.5		206.9		2.79		7,140.5		170.1		2.38
Net Interest Income			$	395.9					$	403.3
Interest Rate Spread					3.42	%					3.66	%
Net Interest Margin					4.08	%					4.25	%
Noninterest-Bearing Demand Deposits	1,891.6						1,950.4
Other Liabilities	429.7						454.2
Shareholders’ Equity	730.3						696.3
Total Liabilities and Shareholders’ Equity	$	10,472.1					$	10,241.4

(1)	Non-performing loans and leases are included in the respective category of average loans and leases outstanding. Income, if any, on such loans and leases is recognized on a cash basis.
(2)	Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $923,000 and $696,000 for the year ended December 31, 2007 and 2006, respectively.

Bank of Hawaii Corporation and Subsidiaries

Analysis of Change in Net Interest Income - Taxable Equivalent Basis (Unaudited) Table 6a

	Three Months Ended December 31, 2007
	compared to September 30, 2007
(dollars in millions)	Volume (1)			Rate (1)			Total
Change in Interest Income:
Interest-Bearing Deposits	$	(0.7	)	$	(0.1	)	$	(0.8	)
Funds Sold	(0.6		)	(0.1		)	(0.7		)
Investment Securities
Trading	(0.3		)	—			(0.3		)
Available-for-Sale	0.2			—			0.2
Held-to-Maturity	(0.2		)	—			(0.2		)
Loans and Leases
Commercial and Industrial	(0.1		)	(0.5		)	(0.6		)
Commercial Mortgage	0.1			(0.1		)	—
Construction	(0.5		)	(0.3		)	(0.8		)
Home Equity	0.3			(0.8		)	(0.5		)
Other Revolving Credit and Installment	0.4			(0.5		)	(0.1		)
Lease Financing	—			0.4			0.4
Total Loans and Leases	0.2			(1.8		)	(1.6		)
Total Change in Interest Income	(1.4		)	(2.0		)	(3.4		)
Change in Interest Expense:
Interest-Bearing Deposits
Demand	—			(0.8		)	(0.8		)
Savings	(0.9		)	(2.1		)	(3.0		)
Time	(0.1		)	(0.6		)	(0.7		)
Total Interest-Bearing Deposits	(1.0		)	(3.5		)	(4.5		)
Short-Term Borrowings	0.4			(0.2		)	0.2
Securities Sold Under Agreements to Repurchase	0.4			(0.3		)	0.1
Long-Term Debt	(0.2		)	0.1			(0.1		)
Total Change in Interest Expense	(0.4		)	(3.9		)	(4.3		)
Change in Net Interest Income	$	(1.0	)	$	1.9		$	0.9

(1) The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume and rate for that category.

Bank of Hawaii Corporation and Subsidiaries

Analysis of Change in Net Interest Income - Taxable Equivalent Basis (Unaudited) Table 6b

	Year Ended December 31, 2007
	compared to December 31, 2006
(dollars in millions)	Volume (1)			Rate (1)			Total
Change in Interest Income:
Interest-Bearing Deposits	$	1.2		$	0.1		$	1.3
Funds Sold	2.3			—			2.3
Investment Securities
Trading	4.9			—			4.9
Available-for-Sale	(4.1		)	7.1			3.0
Held-to-Maturity	(4.0		)	0.6			(3.4		)
Loans and Leases
Commercial and Industrial	5.0			0.4			5.4
Commercial Mortgage	1.7			0.5			2.2
Construction	4.1			(0.7		)	3.4
Residential Mortgage	3.1			4.2			7.3
Home Equity	1.9			1.3			3.2
Other Revolving Credit and Installment	(1.6		)	0.9			(0.7		)
Lease Financing	(0.4		)	0.5			0.1
Total Loans and Leases	13.8			7.1			20.9
Other	—			0.4			0.4
Total Change in Interest Income	14.1			15.3			29.4
Change in Interest Expense:
Interest-Bearing Deposits
Demand	(0.5		)	0.3			(0.2		)
Savings	0.2			15.5			15.7
Time	8.8			9.8			18.6
Total Interest-Bearing Deposits	8.5			25.6			34.1
Short-Term Borrowings	(2.4		)	(0.1		)	(2.5		)
Securities Sold Under Agreements to Repurchase	5.0			(0.2		)	4.8
Long-Term Debt	0.2			0.2			0.4
Total Change in Interest Expense	11.3			25.5			36.8
Change in Net Interest Income	$	2.8		$	(10.2	)	$	(7.4	)

(1) The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume and rate for that category.

Bank of Hawaii Corporation and Subsidiaries

Analysis of Change in Net Interest Income - Taxable Equivalent Basis (Unaudited) Table 6c

	Three Months Ended December 31, 2007
	compared to December 31, 2006
(dollars in millions)	Volume (1)			Rate (1)			Total
Change in Interest Income:
Interest-Bearing Deposits	$	0.2		$	—		$	0.2
Investment Securities
Trading	0.8			—			0.8
Available-for-Sale	(1.1		)	2.0			0.9
Held-to-Maturity	(1.0		)	0.1			(0.9		)
Loans Held for Sale	—			(0.1		)	(0.1		)
Loans and Leases
Commercial and Industrial	0.3			(0.8		)	(0.5		)
Commercial Mortgage	0.4			(0.3		)	0.1
Construction	—			(0.4		)	(0.4		)
Residential Mortgage	0.5			0.4			0.9
Home Equity	0.4			(0.8		)	(0.4		)
Other Revolving Credit and Installment	0.2			(0.2		)	—
Lease Financing	(0.2		)	0.2			—
Total Loans and Leases	1.6			(1.9		)	(0.3		)
Other	—			0.1			0.1
Total Change in Interest Income	0.5			0.2			0.7
Change in Interest Expense:
Interest-Bearing Deposits
Demand	(0.1		)	(0.9		)	(1.0		)
Savings	0.2			1.6			1.8
Time	0.8			0.6			1.4
Total Interest-Bearing Deposits	0.9			1.3			2.2
Short-Term Borrowings	0.5			(0.3		)	0.2
Securities Sold Under Agreements to Repurchase	(0.4		)	(0.3		)	(0.7		)
Long-Term Debt	(0.5		)	0.2			(0.3		)
Total Change in Interest Expense	0.5			0.9			1.4
Change in Net Interest Income	$	—		$	(0.7	)	$	(0.7	)

(1) The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume and rate for that category.

Bank of Hawaii Corporation and Subsidiaries

Salaries and Benefits (Unaudited) Table 7

	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,
(dollars in thousands)	2007		2007		2006		2007		2006
Salaries	$	30,653	$	28,882	$	27,923	$	116,879	$	110,203
Incentive Compensation	4,424		4,364		5,288		16,201		17,150
Share-Based Compensation	1,146		1,601		999		5,307		5,322
Commission Expense	1,744		1,546		1,692		7,444		7,168
Retirement and Other Benefits	3,436		3,865		2,690		14,435		17,212
Payroll Taxes	2,025		2,116		1,992		9,910		9,791
Medical, Dental, and Life Insurance	2,464		2,324		1,934		9,289		7,900
Separation Expense	36		246		209		1,400		1,711
Total Salaries and Benefits	$	45,928	$	44,944	$	42,727	$	180,865	$	176,457

Bank of Hawaii Corporation and Subsidiaries

Loan and Lease Portfolio Balances (Unaudited) Table 8

	December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)	2007		2007 (1)		2007		2007		2006
Commercial
Commercial and Industrial	$	1,054,355	$	1,065,258	$	1,065,155	$	1,042,174	$	1,093,392
Commercial Mortgage	634,483		627,329		619,668		611,784		611,334
Construction	208,670		254,062		261,478		245,951		249,263
Lease Financing	481,882		478,988		480,358		460,837		508,997
Total Commercial	2,379,390		2,425,637		2,426,659		2,360,746		2,462,986
Consumer
Residential Mortgage	2,508,261		2,510,313		2,505,073		2,495,141		2,493,110
Home Equity	972,995		953,713		938,261		938,135		944,873
Other Revolving Credit and Installment	704,747		693,058		677,750		693,132		700,896
Lease Financing	15,468		17,194		18,383		19,998		21,302
Total Consumer	4,201,471		4,174,278		4,139,467		4,146,406		4,160,181
Total Loans and Leases	$	6,580,861	$	6,599,915	$	6,566,126	$	6,507,152	$	6,623,167

Air Transportation Credit Exposure (2) (Unaudited)

	December 31, 2007						Sept. 30, 2007		Dec. 31, 2006
			Unused		Total		Total		Total
(dollars in thousands)	Outstanding		Commitments		Exposure		Exposure		Exposure
Passenger Carriers Based In the United States	$	64,947	$	—	$	64,947	$	64,867	$	68,035
Passenger Carriers Based Outside the United States	19,078		—		19,078		19,162		19,406
Cargo Carriers	13,390		—		13,390		13,326		13,240
Total Air Transportation Credit Exposure	$	97,415	$	—	$	97,415	$	97,355	$	100,681

(1)	Certain prior period information has been reclassified to conform to current presentation.
(2)	Exposure includes loans, leveraged leases and operating leases.

Bank of Hawaii Corporation and Subsidiaries

Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More (Unaudited) Table 9

	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	2007			2007			2007			2007			2006
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial	$	598		$	359		$	265		$	273		$	769
Commercial Mortgage	112			123			130			38			40
Lease Financing	297			—			914			—			31
Total Commercial	1,007			482			1,309			311			840
Consumer
Residential Mortgage	2,681			3,237			3,844			4,345			4,914
Home Equity	1,414			436			899			476			164
Other Revolving Credit and Installment	—			—			214			242			—
Total Consumer	4,095			3,673			4,957			5,063			5,078
Total Non-Accrual Loans and Leases	5,102			4,155			6,266			5,374			5,918
Foreclosed Real Estate	184			105			48			462			407
Other Investments	—			—			—			—			82
Total Non-Performing Assets	$	5,286		$	4,260		$	6,314		$	5,836		$	6,407
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Lease Financing	$	—		$	—		$	—		$	4		$	—
Consumer
Residential Mortgage	4,884			639			188			706			519
Home Equity	413			115			60			219			331
Other Revolving Credit and Installment	2,221			1,678			1,158			1,441			1,954
Lease Financing	65			—			—			10			10
Total Consumer	7,583			2,432			1,406			2,376			2,814
Total Accruing Loans and Leases Past Due 90 Days or More	$	7,583		$	2,432		$	1,406		$	2,380		$	2,814
Total Loans and Leases	$	6,580,861		$	6,599,915		$	6,566,126		$	6,507,152		$	6,623,167
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	0.08		%	0.06		%	0.10		%	0.08		%	0.09		%
Ratio of Non-Performing Assets to Total Loans and Leases, Foreclosed Real Estate, and Other Investments	0.08		%	0.06		%	0.10		%	0.09		%	0.10		%
Ratio of Commercial Non-Performing Assets To Total Commercial Loans and Leases and Other Investments	0.04		%	0.02		%	0.05		%	0.01		%	0.04		%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Foreclosed Real Estate	0.10		%	0.09		%	0.12		%	0.13		%	0.13		%
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases	0.20		%	0.10		%	0.12		%	0.13		%	0.14		%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter	$	4,260		$	6,314		$	5,836		$	6,407		$	5,442
Additions	1,866			662			2,279			1,548			2,427
Reductions
Payments	(256		)	(1,741		)	(804		)	(1,150		)	(255		)
Return to Accrual Status	(214		)	(787		)	(473		)	(435		)	(897		)
Sales of Foreclosed Real Estate	(161		)	(48		)	(326		)	(56		)	(112		)
Charge-offs/Write-downs	(209		)	(140		)	(198		)	(478		)	(198		)
Total Reductions	(840		)	(2,716		)	(1,801		)	(2,119		)	(1,462		)
Balance at End of Quarter	$	5,286		$	4,260		$	6,314		$	5,836		$	6,407

Bank of Hawaii Corporation and Subsidiaries

Reserve for Credit Losses (Unaudited) Table 10

	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
(dollars in thousands)	2007			2007			2006			2007			2006
Balance at Beginning of Period	$	96,167		$	96,167		$	96,167		$	96,167		$	96,167
Loans and Leases Charged-Off
Commercial
Commercial and Industrial	(1,008		)	(715		)	(720		)	(3,266		)	(2,373		)
Lease Financing	—			(123		)	—			(145		)	—
Consumer
Residential Mortgage	(122		)	—			(93		)	(169		)	(132		)
Home Equity	(333		)	(422		)	(195		)	(1,097		)	(633		)
Other Revolving Credit and Installment	(5,717		)	(4,597		)	(4,756		)	(20,223		)	(17,459		)
Lease Financing	(3		)	(7		)	(30		)	(10		)	(60		)
Total Loans and Leases Charged-Off	(7,183		)	(5,864		)	(5,794		)	(24,910		)	(20,657		)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial	285			326			1,445			1,203			3,509
Commercial Mortgage	—			35			—			156			509
Lease Financing	3			2			2			2,092			3
Consumer
Residential Mortgage	18			14			—			221			464
Home Equity	170			69			1			359			309
Other Revolving Credit and Installment	1,261			1,345			1,191			5,355			5,062
Lease Financing	3			3			12			17			43
Total Recoveries on Loans and Leases Previously Charged-Off	1,740			1,794			2,651			9,403			9,899
Net Loans and Leases Charged-Off	(5,443		)	(4,070		)	(3,143		)	(15,507		)	(10,758		)
Provision for Credit Losses	5,443			4,070			3,143			15,507			10,758
Balance at End of Period (1)	$	96,167		$	96,167		$	96,167		$	96,167		$	96,167
Components
Allowance for Loan and Lease Losses	$	90,998		$	90,998		$	90,998		$	90,998		$	90,998
Reserve for Unfunded Commitments	5,169			5,169			5,169			5,169			5,169
Total Reserve for Credit Losses	$	96,167		$	96,167		$	96,167		$	96,167		$	96,167
Average Loans and Leases Outstanding	$	6,581,183		$	6,570,261		$	6,501,868		$	6,561,584		$	6,369,200
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)	0.33		%	0.25		%	0.19		%	0.24		%	0.17		%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding	1.38		%	1.38		%	1.37		%	1.38		%	1.37		%

(1) 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 (Unaudited).

Bank of Hawaii Corporation and Subsidiaries

Business Segments Selected Financial Information (Unaudited) Table 11a

	Retail			Commercial			Investment									Consolidated
(dollars in thousands)	Banking			Banking			Services			Total			Treasury			Total
Three Months Ended December 31, 2007
Net Interest Income (Loss)	$	60,813		$	36,207		$	5,924		$	102,944		$	(3,497	)	$	99,447
Provision for Credit Losses	4,082			1,167			259			5,508			(65		)	5,443
Net Interest Income (Loss) After Provision for Credit Losses	56,731			35,040			5,665			97,436			(3,432		)	94,004
Noninterest Income	27,106			8,039			19,174			54,319			5,938			60,257
Noninterest Expense	(43,895		)	(22,972		)	(18,097		)	(84,964		)	(7,038		)	(92,002		)
Income (Loss) Before Income Taxes	39,942			20,107			6,742			66,791			(4,532		)	62,259
Provision for Income Taxes	(14,778		)	(7,436		)	(2,495		)	(24,709		)	3,310			(21,399		)
Allocated Net Income (Loss)	25,164			12,671			4,247			42,082			(1,222		)	40,860
Allowance Funding Value	(275		)	(761		)	(13		)	(1,049		)	1,049			—
Provision for Credit Losses	4,082			1,167			259			5,508			(65		)	5,443
Economic Provision	(3,115		)	(2,137		)	(84		)	(5,336		)	—			(5,336		)
Tax Effect of Adjustments	(256		)	640			(60		)	324			(364		)	(40		)
Income (Loss) Before Capital Charge	25,600			11,580			4,349			41,529			(602		)	40,927
Capital Charge	(5,550		)	(4,163		)	(1,699		)	(11,412		)	(9,311		)	(20,723		)
Net Income (Loss) After Capital Charge (NIACC)	$	20,050		$	7,417		$	2,650		$	30,117		$	(9,913	)	$	20,204
RAROC (ROE for the Company)	50		%	30		%	28		%	40		%	(2		)%	22		%
Total Assets as of December 31, 2007	$	4,056,718		$	2,712,139		$	272,311		$	7,041,168		$	3,431,774		$	10,472,942

	Retail			Commercial			Investment									Consolidated
(dollars in thousands)	Banking			Banking			Services			Total			Treasury			Total
Three Months Ended December 31, 2006 (1)
Net Interest Income	$	58,525		$	34,839		$	5,548		$	98,912		$	1,293		$	100,205
Provision for Credit Losses	3,525			747			(1,000		)	3,272			(129		)	3,143
Net Interest Income After Provision for Credit Losses	55,000			34,092			6,548			95,640			1,422			97,062
Noninterest Income	26,144			7,178			17,763			51,085			2,431			53,516
Noninterest Expense	(43,853		)	(19,733		)	(16,265		)	(79,851		)	(1,746		)	(81,597		)
Income Before Income Taxes	37,291			21,537			8,046			66,874			2,107			68,981
Provision for Income Taxes	(13,799		)	(7,960		)	(2,977		)	(24,736		)	6,668			(18,068		)
Allocated Net Income	23,492			13,577			5,069			42,138			8,775			50,913
Allowance Funding Value	(202		)	(686		)	(9		)	(897		)	897			—
Provision for Credit Losses	3,525			747			(1,000		)	3,272			(129		)	3,143
Economic Provision	(3,125		)	(2,190		)	(100		)	(5,415		)	—			(5,415		)
Tax Effect of Adjustments	(73		)	788			410			1,125			(284		)	841
Income Before Capital Charge	23,617			12,236			4,370			40,223			9,259			49,482
Capital Charge	(5,486		)	(3,982		)	(1,564		)	(11,032		)	(8,416		)	(19,448		)
Net Income After Capital Charge (NIACC)	$	18,131		$	8,254		$	2,806		$	29,191		$	843		$	30,034
RAROC (ROE for the Company)	47		%	34		%	30		%	40		%	23		%	29		%
Total Assets as of December 31, 2006 (1)	$	3,972,919		$	2,795,509		$	213,506		$	6,981,934		$	3,589,881		$	10,571,815

(1)  Certain prior period information has been reclassified to conform to the current presentation.

Bank of Hawaii Corporation and Subsidiaries

Business Segments Selected Financial Information (Unaudited) Table 11b

	Retail			Commercial			Investment									Consolidated
(dollars in thousands)	Banking			Banking			Services			Total			Treasury			Total
Year Ended December 31, 2007
Net Interest Income (Loss)	$	237,715		$	140,235		$	22,585		$	400,535		$	(5,517	)	$	395,018
Provision for Credit Losses	12,949			2,576			258			15,783			(276		)	15,507
Net Interest Income (Loss) After Provision for Credit Losses	224,766			137,659			22,327			384,752			(5,241		)	379,511
Noninterest Income	106,667			38,134			76,592			221,393			19,094			240,487
Noninterest Expense	(172,874		)	(83,302		)	(67,828		)	(324,004		)	(11,403		)	(335,407		)
Income Before Income Taxes	158,559			92,491			31,091			282,141			2,450			284,591
Provision for Income Taxes	(58,668		)	(34,050		)	(11,504		)	(104,222		)	3,334			(100,888		)
Allocated Net Income	99,891			58,441			19,587			177,919			5,784			183,703
Allowance Funding Value	(983		)	(2,924		)	(44		)	(3,951		)	3,951			—
Provision for Credit Losses	12,949			2,576			258			15,783			(276		)	15,507
Economic Provision	(12,015		)	(8,464		)	(335		)	(20,814		)	(1		)	(20,815		)
Tax Effect of Adjustments	18			3,260			45			3,323			(1,360		)	1,963
Income Before Capital Charge	99,860			52,889			19,511			172,260			8,098			180,358
Capital Charge	(21,957		)	(16,119		)	(6,484		)	(44,560		)	(35,765		)	(80,325		)
Net Income (Loss) After Capital Charge (NIACC)	$	77,903		$	36,770		$	13,027		$	127,700		$	(27,667	)	$	100,033
RAROC (ROE for the Company)	50		%	36		%	33		%	43		%	7		%	25		%
Total Assets as of December 31, 2007	$	4,056,718		$	2,712,139		$	272,311		$	7,041,168		$	3,431,774		$	10,472,942

	Retail			Commercial			Investment									Consolidated
(dollars in thousands)	Banking			Banking			Services			Total			Treasury			Total
Year Ended December 31, 2006 (1)
Net Interest Income	$	231,162		$	135,564		$	21,864		$	388,590		$	14,023		$	402,613
Provision for Credit Losses	10,491			1,965			(1		)	12,455			(1,697		)	10,758
Net Interest Income After Provision for Credit Losses	220,671			133,599			21,865			376,135			15,720			391,855
Noninterest Income	100,294			35,421			70,413			206,128			10,048			216,176
Noninterest Expense	(170,705		)	(78,625		)	(65,151		)	(314,481		)	(6,481		)	(320,962		)
Income Before Income Taxes	150,260			90,395			27,127			267,782			19,287			287,069
Provision for Income Taxes	(55,596		)	(42,222		)	(10,028		)	(107,846		)	1,136			(106,710		)
Allocated Net Income	94,664			48,173			17,099			159,936			20,423			180,359
Allowance Funding Value	(792		)	(2,496		)	(34		)	(3,322		)	3,322			—
Provision for Credit Losses	10,491			1,965			(1		)	12,455			(1,697		)	10,758
Economic Provision	(12,466		)	(8,818		)	(386		)	(21,670		)	(1		)	(21,671		)
Tax Effect of Adjustments	1,024			3,459			156			4,639			(601		)	4,038
Income Before Capital Charge	92,921			42,283			16,834			152,038			21,446			173,484
Capital Charge	(21,744		)	(16,264		)	(6,291		)	(44,299		)	(32,307		)	(76,606		)
Net Income (Loss) After Capital Charge (NIACC)	$	71,177		$	26,019		$	10,543		$	107,739		$	(10,861	)	$	96,878
RAROC (ROE for the Company)	47		%	29		%	29		%	38		%	15		%	26		%
Total Assets as of December 31, 2006 (1)	$	3,972,919		$	2,795,509		$	213,506		$	6,981,934		$	3,589,881		$	10,571,815

(1)  Certain prior period information has been reclassified to conform to the current presentation.

Bank of Hawaii Corporation and Subsidiaries

Quarterly Summary of Selected Financial Data (Unaudited) Table 12

	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands, except per share amounts)	2007			2007			2007			2007			2006
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	111,270		$	112,787		$	112,026		$	110,298		$	111,649
Income on Investment Securities
Trading	814			1,114			1,357			1,618			—
Available-for-Sale	33,591			33,486			31,563			30,961			32,807
Held-to-Maturity	3,440			3,616			3,827			4,052			4,282
Deposits	309			1,086			96			58			63
Funds Sold	356			1,103			533			1,058			406
Other	395			364			364			333			333
Total Interest Income	150,175			153,556			149,766			148,378			149,540
Interest Expense
Deposits	33,158			37,613			33,701			33,375			30,924
Securities Sold Under Agreements to Repurchase	11,754			11,726			11,665			11,886			12,538
Funds Purchased	1,936			1,654			1,452			923			1,689
Short-Term Borrowings	91			87			91			87			106
Long-Term Debt	3,789			3,920			3,979			3,970			4,078
Total Interest Expense	50,728			55,000			50,888			50,241			49,335
Net Interest Income	99,447			98,556			98,878			98,137			100,205
Provision for Credit Losses	5,443			4,070			3,363			2,631			3,143
Net Interest Income After Provision for Credit Losses	94,004			94,486			95,515			95,506			97,062
Noninterest Income
Trust and Asset Management	15,812			15,146			16,135			15,833			14,949
Mortgage Banking	2,027			3,848			2,479			3,371			2,612
Service Charges on Deposit Accounts	12,302			11,919			11,072			10,967			11,206
Fees, Exchange, and Other Service Charges	16,743			16,465			16,556			16,061			15,775
Investment Securities Gains, Net	105			789			575			16			153
Insurance	4,629			7,446			4,887			6,215			3,965
Other	8,639			5,629			6,324			8,497			4,856
Total Noninterest Income	60,257			61,242			58,028			60,960			53,516
Noninterest Expense
Salaries and Benefits	45,928			44,944			44,587			45,406			42,727
Net Occupancy	10,300			10,267			9,695			9,811			9,959
Net Equipment	4,745			4,871			4,871			4,787			5,012
Professional Fees	3,695			2,369			2,599			2,543			1,189
Other	27,334			18,999			18,080			19,576			22,710
Total Noninterest Expense	92,002			81,450			79,832			82,123			81,597
Income Before Provision for Income Taxes	62,259			74,278			73,711			74,343			68,981
Provision for Income Taxes	21,399			26,499			25,982			27,008			18,068
Net Income	$	40,860		$	47,779		$	47,729		$	47,335		$	50,913
Basic Earnings Per Share	$	0.84		$	0.98		$	0.97		$	0.96		$	1.03
Diluted Earnings Per Share	$	0.83		$	0.96		$	0.95		$	0.94		$	1.01
Balance Sheet Totals
Total Assets	$	10,472,942		$	10,549,595		$	10,722,568		$	10,491,957		$	10,571,815
Loans and Leases	6,580,861			6,599,915			6,566,126			6,507,152			6,623,167
Total Deposits	7,942,372			7,875,166			8,314,404			7,952,937			8,023,394
Total Shareholders’ Equity	750,255			731,697			708,806			711,031			719,420
Performance Ratios
Net Income to Average Total Assets	1.55		%	1.79		%	1.84		%	1.83		%	1.94		%
Net Income to Average Shareholders’ Equity	21.51			26.02			26.30			27.00			28.56
Net Interest Margin (1)	4.12			4.03			4.12			4.07			4.15
Efficiency Ratio (2)	57.61			50.97			50.88			51.62			53.08

(1)  Net interest margin is defined as net interest income, on a taxable equivalent basis, as a percentage of average earning assets.

(2)  Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).