Bank of Hawaii (BOH) 8-K Bank of Hawaii Corporation 2011 Financial Results

Exhibit 99.1

Bank of Hawaii Corporation 2011 Financial Results

·2011 Diluted Earnings Per Share $3.39

·2011 Net Income $160.0 Million

·Diluted Earnings Per Share for the Fourth Quarter of 2011 $0.85

·Net Income for the Fourth Quarter of 2011 $39.2 Million

·Board of Directors Declares Dividend of $0.45 Per Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (January 23, 2012) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.85 for the fourth quarter of 2011, down from $0.92 per share in the previous quarter, and up from $0.84 per share in the same quarter last year.  Net income for the fourth quarter of 2011 was $39.2 million, compared to net income of $43.3 million in the third quarter of 2011 and $40.6 million in the same quarter last year.

Loan and lease balances grew to $5.5 billion during the fourth quarter of 2011, increasing by 3.5 percent compared with the third quarter of 2011.  Deposit growth remained strong, growing by 5.8 percent to $10.6 billion at December 31, 2011.  As a result of continued strength in asset quality and an improving Hawaii economy, the allowance for loan and lease losses decreased by $4.8 million to $138.6 million, representing 2.50 percent of outstanding loans and leases.

“Bank of Hawaii finished 2011with solid financial performance,” said Peter S. Ho, Chairman, President, and CEO.  “During the quarter, we were pleased that our loan balances increased across most categories and deposit growth remained strong.  Credit quality remained strong during the quarter.  Our balance sheet remains solid, with high levels of liquidity, capital, and reserves due to our continued focus on disciplined capital and risk management.  During the quarter we reduced our shares outstanding by 1.3 percent and maintained our quarterly dividend of $0.45 per share.”

The return on average assets for the fourth quarter of 2011 was 1.17 percent, compared with 1.31 percent in the previous quarter and 1.24 percent in the same quarter last year.  The return on average equity for the fourth quarter of 2011 was 15.23 percent, compared with 16.80 percent in the previous quarter and 15.08 percent in the same quarter last year.  The return on average assets for the full year of 2011 was 1.22 percent, down from 1.45 percent in 2010.  The return on average equity for the full year of 2011 was 15.69 percent compared with 18.16 percent in 2010.

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Bank of Hawaii Corporation 2011 Financial Results Page 2

Financial Highlights

Net interest income, on a taxable equivalent basis, for the fourth quarter of 2011 was $97.2 million, up slightly from net interest income of $97.1 million in the third quarter of 2011 and up $0.6 million from net interest income of $96.6 million in the fourth quarter of 2010.  Net interest income, on a taxable equivalent basis, for the full year of 2011 was $392.3 million, down $15.2 million from net interest income of $407.5 million in 2010.  Analyses of changes in net interest income are included in Tables 7a, 7b and 7c.

The net interest margin was 3.04 percent for the fourth quarter of 2011, a 5 basis point decrease from the previous quarter and an 11 basis point decrease from the same quarter last year. The net interest margin for the full year of 2011 was 3.13 percent, a 28 basis point decrease from 3.41 percent in 2010.  The reduction in the net interest margin was largely the result of higher levels of liquidity, lower average loan balances, and lower interest rates which resulted in lower yields on loans and investments.

During the fourth quarter of 2011 the provision for credit losses was $2.2 million, or $4.8 million less than net charge-offs.  The provision for credit losses during the third quarter of 2011 was $2.2 million, or $1.6 million less than net charge-offs.  The provision for credit losses during the fourth quarter of 2010 was $5.3 million and equaled net charge-offs.  The provision for credit losses for the full year of 2011 was $12.7 million compared with $55.3 million in 2010.

Noninterest income was $43.4 million for the fourth quarter of 2011, compared with $50.9 million in the third quarter of 2011 and $51.5 million in the fourth quarter of 2010.  There were no significant noninterest revenue items in the fourth quarter of 2011 or the fourth quarter of 2010.  Noninterest income in the third quarter of 2011 included a $2.0 million contingent payment received from the sale of the Company’s proprietary mutual funds in 2010.  The decline in noninterest revenue compared with the previous quarter is primarily due to lower debit card revenue resulting from implementation of the Durbin Amendment.  Mortgage Banking revenue also declined compared to the prior quarters due to the Company’s decision to portfolio some saleable mortgages.  Noninterest income for the full year of 2011 was $197.7 million compared with noninterest income of $255.3 million in 2010.  Results for 2011 included $6.4 million in gains on the sales of investment securities compared with similar gains of $42.8 million in 2010. Excluding the securities gains, noninterest revenue declined in 2011 compared with 2010 primarily due to reduced overdraft fees.

Noninterest expense was $84.4 million in the fourth quarter of 2011, up slightly from noninterest expense of $84.0 million in the third quarter of 2011, and down from $88.7 million in the fourth quarter of 2010.  There were no significant noninterest expense items in the fourth quarter of 2011.  Noninterest expense in the third quarter of 2011 included a donation of $2.0 million to the Bank of Hawaii Foundation.  Noninterest expense in the fourth quarter of 2010 included $1.9 million for employee incentives, $1.2 million for a refresh of personal computers, and a donation of $1.0 million to the Bank of Hawaii Foundation.  In the fourth quarter of 2010 these items were partially offset by a $1.3 million gain on the sale of foreclosed real estate and a $1.0 million settlement gain on the extinguishment of retiree life insurance obligations.  Noninterest expense for the full year of 2011 was $348.2 million, up slightly from noninterest expense of $346.2 million in 2010.  Results for 2011 included a second quarter litigation settlement of $9.0 million.

The efficiency ratio for the fourth quarter of 2011 was 60.42 percent compared with 56.87 percent in the previous quarter and 60.05 percent in the same quarter last year.  The efficiency ratio for the full year of 2011 was 59.23 percent compared with 52.32 percent during the full year of 2010.

The effective tax rate for the fourth quarter of 2011 was 26.1 percent compared with 29.6 percent in the previous quarter and 24.5 percent in the same quarter last year.  The effective tax rate for the full

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Bank of Hawaii Corporation 2011 Financial Results Page 3

year of 2011 was 29.5 percent compared with 29.3 percent for the full year of 2010.  The effective tax rate for the fourth quarters of 2011 and 2010 were favorably impacted by the release of tax reserves determined during the quarter.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury & Other.  Results are determined based on the Company’s internal financial management reporting process and organizational structure.  Selected financial information for the business segments is included in Tables 12a and 12b.

Asset Quality

The Company’s overall asset quality reflects the gradually improving Hawaii economy despite continuing weakness in the construction sector.  Total non-performing assets increased to $40.8 million at December 31, 2011 primarily due to the addition of one $2.1 million construction loan and are centered in residential mortgage loans which are taking longer to resolve through the judiciary foreclosure process.  As a percentage of total loans and leases, including loans held for sale and foreclosed real estate, non-performing assets were 0.73 percent at December 31, 2011, up from 0.70 percent as of September 30, 2011 and 0.71 percent at December 31, 2010.

Accruing loans and leases past due 90 days or more were $9.2 million at December 31, 2011, down from $10.9 million at September 30, 2011, and up from $7.6 million at December 31, 2010.  Delinquencies in residential first mortgage and home equity loans continue to be primarily on neighbor island properties.   Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $33.7 million at December 31, 2011 and was primarily comprised of residential mortgage loans with lowered monthly payments to accommodate the borrowers’ financial needs for a period of time.  More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 10.

Net charge-offs during the fourth quarter of 2011 were $7.0 million or 0.51 percent annualized of total average loans and leases outstanding.  Total charge-offs of $9.6 million were partially offset by total recoveries of $2.6 million.  Net charge-offs during the third quarter of 2011 were $3.8 million or 0.28 percent annualized, and were comprised of charge-offs of $10.8 million and recoveries of $7.0 million.  Net charge-offs in the fourth quarter of 2010 were $5.3 million, or 0.39 percent annualized, and were comprised of charge-offs of $15.7 million and recoveries of $10.4 million.  Net charge-offs for the full year of 2011 were $21.4 million, or 0.40 percent of total average loans and leases, down from $51.6 million, or 0.94 percent of total average loans and leases in 2010.

The allowance for loan and lease losses was $138.6 million at December 31, 2011, down $4.8 million from the allowance for loan and lease losses of $143.4 million at September 30, 2011 and $147.4 million at December 31, 2010.  The ratio of the allowance for loan and lease losses to total loans and leases was 2.50 percent at December 31, 2011, a decrease of 18 basis points from the previous quarter.  The reserve for unfunded commitments at December 31, 2011 was unchanged at $5.4 million.  Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 11.

Other Financial Highlights

Total assets increased to $13.85 billion at December 31, 2011, up from total assets of $13.30 billion at September 30, 2011, and up from total assets of $13.13 billion at December 31, 2010.  Average total assets were $13.36 billion during the fourth quarter of 2011, up from average total assets of $13.13 billion during the third quarter of 2011, and up from average total assets of $12.96 billion during the fourth quarter of 2010.

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Bank of Hawaii Corporation 2011 Financial Results Page 4

Total loans and leases grew to $5.54 billion at December 31, 2011, up from $5.35 billion at September 30, 2011, and up from $5.34 billion at December 31, 2010.  Average total loans and leases were $5.42 billion during the fourth quarter of 2011, up from $5.34 billion during the previous quarter, and up from $5.32 billion during the same quarter last year.  Loan and lease portfolio balances, including the higher risk loans outstanding, are summarized in Table 9.

Deposit generation continued to remain strong during the fourth quarter of 2011, increasing to $10.59 billion at December 31, 2011, up from $10.01 billion at September 30, 2011, and up from $9.89 billion at December 31, 2010.  Average total deposits were $10.16 billion in the fourth quarter of 2011, higher than average deposits of $9.87 billion during the previous quarter, and up from average deposits of $9.68 billion during the same quarter last year.

As a result of the strong deposit growth, which exceeded loan growth during the fourth quarter, the investment portfolio grew to $7.11 billion at year-end 2011, compared to $6.97 billion at September 30, 2011 and $6.66 billion at December 31, 2010.   The Company’s municipal bond portfolio increased by $247 million during the fourth quarter of 2011, which represents 6.0 percent of the total securities portfolio at December 31, 2011.  The investment portfolio remains largely comprised of securities issued by U. S. government agencies.

During the fourth quarter of 2011, the Company repurchased 702.3 thousand shares of common stock at a total cost of $29.1 million under its share repurchase program.  The average cost was $41.44 per share repurchased.  From January 3 through January 20, 2012, the Company repurchased an additional 70.0 thousand shares of common stock at an average cost of $46.28 per share repurchased.  From the beginning of the share repurchase program initiated during July 2001 through December 31, 2011, the Company has repurchased 48.5 million shares and returned over $1.7 billion to shareholders at an average cost of $35.98 per share.  Remaining buyback authority under the share repurchase program was $74.0 million at December 31, 2011.

Total shareholders’ equity was $1.00 billion at December 31, 2011, down slightly from $1.02 billion at September 30, 2011 and $1.01 billion at December 31, 2010.  The ratio of tangible common equity to risk-weighted assets was 17.93 percent at December 31, 2011, compared with 18.90 percent at September 30, 2011 and 19.29 percent at December 31, 2010.  The Tier 1 leverage ratio at December 31, 2011 was 6.73 percent, down from 6.95 percent at September 30, 2011 and 7.15 percent at December 31, 2010.

The Company’s Board of Directors declared a quarterly cash dividend of $0.45 per share on the Company’s outstanding shares.  The dividend will be payable on March 14, 2012 to shareholders of record at the close of business on February 29, 2012.

Hawaii Economy

Hawaii’s economy continued to slowly recover during the fourth quarter of 2011 due to increasing visitor arrivals and spending.  For the first 11 months of 2011, total visitor arrivals increased 3.4 percent compared to the same period in 2010.  Total visitor spending for the first 11 months of 2011 increased 15.1 percent compared to the same period last year primarily due to strong spending growth from international visitors from the Asia-Pacific region, Canada, Australia, and New Zealand.  Hotel occupancy continued to improve and revenue per available room reflects signs of improvement.  Overall, employment continues to be stable.  The statewide unemployment rate remains significantly below the national average at 6.5 percent for the month of November.  More information on current Hawaii economic trends is presented in Table 14.

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Bank of Hawaii Corporation 2011 Financial Results Page 5

Conference Call Information

The Company will review its 2011 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 800-901-5231.  International participants should call 617-786-2961.  Use the pass code “Bank of Hawaii” to access the call.  A replay of the conference call will be available for one week beginning Monday, January 23, 2012 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the number 83186423 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, 2010, which was filed with the U.S. Securities and Exchange Commission.  We do not promise to update forward-looking statements to reflect later events or circumstances

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

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Bank of Hawaii Corporation and Subsidiaries
Financial Highlights													Table 1a
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
(dollars in thousands, except per share amounts)	2011			2011			2010			2011			2010
For the Period:
Operating Results
Net Interest Income	$	96,246		$	96,766		$	96,273		$	390,208		$	406,480
Provision for Credit Losses	2,219			2,180			5,278			12,690			55,287
Total Noninterest Income	43,407			50,863			51,477			197,655			255,258
Total Noninterest Expense	84,382			83,955			88,722			348,193			346,236
Net Income	39,229			43,306			40,578			160,043			183,942
Basic Earnings Per Share	0.85			0.93			0.84			3.40			3.83
Diluted Earnings Per Share	0.85			0.92			0.84			3.39			3.80
Dividends Declared Per Share	0.45			0.45			0.45			1.80			1.80
Performance Ratios
Return on Average Assets	1.17		%	1.31		%	1.24		%	1.22		%	1.45		%
Return on Average Shareholders’ Equity	15.23			16.80			15.08			15.69			18.16
Efficiency Ratio 1	60.42			56.87			60.05			59.23			52.32
Net Interest Margin 2	3.04			3.09			3.15			3.13			3.41
Dividend Payout Ratio 3	52.94			48.39			53.57			52.94			47.00
Average Shareholders’ Equity to Average Assets	7.65			7.79			8.23			7.78			7.98
Average Balances
Average Loans and Leases	$	5,420,352		$	5,340,406		$	5,317,815		$	5,349,938		$	5,472,534
Average Assets	13,357,646			13,125,077			12,964,973			13,105,029			12,687,717
Average Deposits	10,160,392			9,871,750			9,677,452			9,924,697			9,509,130
Average Shareholders’ Equity	1,022,012			1,022,585			1,067,429			1,020,065			1,012,746
Market Price Per Share of Common Stock
Closing	$	44.49		$	36.40		$	47.21		$	44.49		$	47.21
High	45.13			47.10			48.27			49.26			54.10
Low	34.50			35.30			42.94			34.50			41.60
							December 31,			September 30,			December 31,
							2011			2011			2010
As of Period End:
Balance Sheet Totals
Loans and Leases							$	5,538,304		$	5,348,472		$	5,335,792
Total Assets							13,846,391			13,304,758			13,126,787
Total Deposits							10,592,623			10,009,013			9,888,995
Long-Term Debt							30,696			30,705			32,652
Total Shareholders’ Equity							1,002,667			1,017,775			1,011,133
Asset Quality
Allowance for Loan and Lease Losses							$	138,606		$	143,410		$	147,358
Non-Performing Assets							40,790			37,770			37,786
Financial Ratios
Allowance to Loans and Leases Outstanding							2.50		%	2.68		%	2.76		%
Tier 1 Capital Ratio							16.68			17.57			18.28
Total Capital Ratio							17.95			18.83			19.55
Tier 1 Leverage Ratio							6.73			6.95			7.15
Total Shareholders’ Equity to Total Assets							7.24			7.65			7.70
Tangible Common Equity to Tangible Assets 4							7.03			7.43			7.48
Tangible Common Equity to Risk-Weighted Assets 4							17.93			18.90			19.29
Non-Financial Data
Full-Time Equivalent Employees							2,370			2,381			2,399
Branches and Offices							81			82			82
ATMs							506			508			502

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, a non-GAAP financial measure, is defined by the Company as shareholders’ equity minus goodwill and intangible assets. Intangible assets are included as a component of other assets in the Consolidated Statements of Condition.

Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures					Table 1b
	December 31,		September 30,		December 31,
(dollars in thousands)	2011		2011		2010
Total Shareholders’ Equity	$	1,002,667	$	1,017,775	$	1,011,133
Less: Goodwill	31,517		31,517		31,517
Intangible Assets	83		96		154
Tangible Common Equity	$	971,067	$	986,162	$	979,462
Total Assets	$	13,846,391	$	13,304,758	$	13,126,787
Less: Goodwill	31,517		31,517		31,517
Intangible Assets	83		96		154
Tangible Assets	$	13,814,791	$	13,273,145	$	13,095,116
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements	$	5,414,481	$	5,218,651	$	5,076,909
Total Shareholders’ Equity to Total Assets	7.24%		7.65%		7.70%
Tangible Common Equity to Tangible Assets (Non-GAAP)	7.03%		7.43%		7.48%
Tier 1 Capital Ratio	16.68%		17.57%		18.28%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)	17.93%		18.90%		19.29%

Bank of Hawaii Corporation and Subsidiaries
Net Significant Income (Expense) Items	Table 2

	Three Months Ended								Year Ended
	December 31,		September 30,			December 31,			December 31,
(dollars in thousands)	2011		2011			2010			2011			2010
Cash Basis Interest Recoveries	$	-	$	-		$	-		$	-		$	2,832
Investment Securities Gains, Net	-		-			-			6,366			42,848
Gain on Mutual Fund Sale	-		1,956			-			1,956			2,852
Gains (Loss) on Disposal of Leased Equipment	-		-			-			-			(260		)
Gain on Sale of Insurance Subsidiary	-		-			-			-			904
Decrease (Increase) in Allowance for Loan and Lease Losses	4,804		1,566			-			8,752			(3,700		)
Employee Incentive Awards	-		-			(1,949		)	-			(1,949		)
Cash Grants for the Purchase of Company Stock	-		-			(196		)	-			(3,446		)
Settlement Gain on the Extinguishment of Retiree Life Insurance Obligation	-		-			951			-			951
PC Refresh	-		-			(1,192		)	-			(1,192		)
Settlement Related to Overdraft Claims	-		-			-			(9,000		)	-
Bank of Hawaii Charitable Foundation	-		(2,000		)	(1,000		)	(2,000		)	(1,000		)
Gain on Sale of Foreclosed Real Estate	-		-			1,343			-			1,343
REPO Early Termination Expense	-		-			-			-			(5,189		)
Significant Income (Expense) Items Before the Provision (Benefit) for Income Taxes	4,804		1,522			(2,043		)	6,074			34,994
Income Taxes Impact Related to Lease Transactions	-		-			-			-			(3,541		)
Income Tax Impact	1,681		533			(715		)	2,126			12,340
Net Significant Income (Expense) Items	$	3,123	$	989		$	(1,328	)	$	3,948		$	26,195

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income	Table 3

	Three Months Ended							Year Ended
	December 31,		September 30,		December 31,			December 31,
(dollars in thousands, except per share amounts)	2011		2011		2010			2011		2010
Interest Income
Interest and Fees on Loans and Leases	$	64,760	$	65,344	$	67,915		$	262,239	$	287,381
Income on Investment Securities
Available-for-Sale	19,107		23,097		39,546			103,363		169,151
Held-to-Maturity	23,608		20,344		1,388			72,138		6,504
Deposits	2		6		7			8		28
Funds Sold	120		160		160			828		1,076
Other	280		279		279			1,117		1,111
Total Interest Income	107,877		109,230		109,295			439,693		465,251
Interest Expense
Deposits	3,736		4,561		5,918			18,321		29,196
Securities Sold Under Agreements to Repurchase	7,392		7,400		6,425			29,171		25,996
Funds Purchased	5		4		7			20		30
Long-Term Debt	498		499		672			1,973		3,549
Total Interest Expense	11,631		12,464		13,022			49,485		58,771
Net Interest Income	96,246		96,766		96,273			390,208		406,480
Provision for Credit Losses	2,219		2,180		5,278			12,690		55,287
Net Interest Income After Provision for Credit Losses	94,027		94,586		90,995			377,518		351,193
Noninterest Income
Trust and Asset Management	11,025		10,788		11,190			45,046		44,889
Mortgage Banking	3,401		5,480		4,549			14,664		18,576
Service Charges on Deposit Accounts	9,606		9,820		11,632			38,733		53,039
Fees, Exchange, and Other Service Charges	12,401		16,219		15,196			60,227		61,006
Investment Securities Gains (Losses), Net	282		-		(1		)	6,366		42,848
Insurance	2,312		2,664		2,309			10,957		9,961
Other	4,380		5,892		6,602			21,662		24,939
Total Noninterest Income	43,407		50,863		51,477			197,655		255,258
Noninterest Expense
Salaries and Benefits	44,927		44,307		46,809			182,816		185,713
Net Occupancy	11,253		11,113		10,504			43,169		40,988
Net Equipment	4,748		4,662		5,902			18,849		19,371
Professional Fees	1,926		2,245		2,116			8,623		7,104
FDIC Insurance	2,027		2,065		3,198			9,346		12,564
Other	19,501		19,563		20,193			85,390		80,496
Total Noninterest Expense	84,382		83,955		88,722			348,193		346,236
Income Before Provision for Income Taxes	53,052		61,494		53,750			226,980		260,215
Provision for Income Taxes	13,823		18,188		13,172			66,937		76,273
Net Income	$	39,229	$	43,306	$	40,578		$	160,043	$	183,942
Basic Earnings Per Share	$	0.85	$	0.93	$	0.84		$	3.40	$	3.83
Diluted Earnings Per Share	$	0.85	$	0.92	$	0.84		$	3.39	$	3.80
Dividends Declared Per Share	$	0.45	$	0.45	$	0.45		$	1.80	$	1.80
Basic Weighted Average Shares	46,195,147		46,806,439		48,034,234			47,064,925		48,055,025
Diluted Weighted Average Shares	46,324,734		46,934,140		48,275,474			47,224,981		48,355,965

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition	Table 4

	December 31,			September 30,			December 31,
(dollars in thousands)	2011			2011			2010
Assets
Interest-Bearing Deposits	$	3,036		$	3,543		$	3,472
Funds Sold	512,384			242,062			438,327
Investment Securities
Available-for-Sale	3,451,885			4,448,898			6,533,874
Held-to-Maturity (Fair Value of $3,754,206; $2,610,081; and $134,028)	3,657,796			2,520,422			127,249
Loans Held for Sale	18,957			12,745			17,564
Loans and Leases	5,538,304			5,348,472			5,335,792
Allowance for Loan and Lease Losses	(138,606		)	(143,410		)	(147,358		)
Net Loans and Leases	5,399,698			5,205,062			5,188,434
Total Earning Assets	13,043,756			12,432,732			12,308,920
Cash and Noninterest-Bearing Deposits	154,489			206,875			165,748
Premises and Equipment	103,550			104,509			108,170
Customers’ Acceptances	476			749			437
Accrued Interest Receivable	43,510			43,319			41,151
Foreclosed Real Estate	3,042			3,341			1,928
Mortgage Servicing Rights	24,279			23,990			25,379
Goodwill	31,517			31,517			31,517
Other Assets	441,772			457,726			443,537
Total Assets	$	13,846,391		$	13,304,758		$	13,126,787
Liabilities
Deposits
Noninterest-Bearing Demand	$	2,850,923		$	2,702,296		$	2,447,713
Interest-Bearing Demand	2,005,983			1,745,812			1,871,718
Savings	4,398,638			4,449,351			4,526,893
Time	1,337,079			1,111,554			1,042,671
Total Deposits	10,592,623			10,009,013			9,888,995
Funds Purchased	10,791			9,882			9,478
Short-Term Borrowings	-			6,400			6,200
Securities Sold Under Agreements to Repurchase	1,925,998			1,929,266			1,901,084
Long-Term Debt	30,696			30,705			32,652
Banker’s Acceptances	476			749			437
Retirement Benefits Payable	46,949			30,704			30,885
Accrued Interest Payable	5,330			6,751			5,007
Taxes Payable and Deferred Taxes	95,840			114,842			121,517
Other Liabilities	135,021			148,671			119,399
Total Liabilities	12,843,724			12,286,983			12,115,654
Shareholders’ Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2011 - 57,134,470 / 45,947,116;
September 30, 2011 - 57,132,310 / 46,570,413;
and December 31, 2010 - 57,115,287 / 48,097,672)	571			571			570
Capital Surplus	507,558			503,255			500,888
Accumulated Other Comprehensive Income	35,263			46,754			26,965
Retained Earnings	1,003,938			986,202			932,629
Treasury Stock, at Cost (Shares: December 31, 2011 - 11,187,354;
September 30, 2011 - 10,561,897; and December 31, 2010 - 9,017,615)	(544,663		)	(519,007		)	(449,919		)
Total Shareholders’ Equity	1,002,667			1,017,775			1,011,133
Total Liabilities and Shareholders’ Equity	$	13,846,391		$	13,304,758		$	13,126,787

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders’ Equity	Table 5

							Accum.
							Other
							Comprehensive
			Common		Capital		Income		Retained		Treasury		Comprehensive
(dollars in thousands)	Total		Stock		Surplus		(Loss)		Earnings		Stock		Income
Balance as of December 31, 2009	$	895,973	$	569	$	494,318	$	6,925	$	843,521	$	(449,360)
Comprehensive Income:
Net Income	183,942		-		-		-		183,942		-		$	183,942
Other Comprehensive Income, Net of Tax:
Net Unrealized Gains on Investment Securities,
Net of Reclassification Adjustment	20,231		-		-		20,231		-		-		20,231
Settlement Gain Related to Defined Benefit Plan	(608)		-		-		(608)		-		-		(608)
Net Gains related to Defined Benefit Plans	417		-		-		417		-		-		417
Total Comprehensive Income													$	203,982
Share-Based Compensation	3,841		-		3,841		-		-		-
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits (617,345 shares)	19,141		1		2,729		-		(8,011)		24,422
Common Stock Repurchased (538,616 shares)	(24,981)		-		-		-		-		(24,981)
Cash Dividends Paid ($1.80 per share)	(86,823)		-		-		-		(86,823)		-
Balance as of December 31, 2010	$	1,011,133	$	570	$	500,888	$	26,965	$	932,629	$	(449,919)
Comprehensive Income:
Net Income	160,043		-		-		-		160,043		-		$	160,043
Other Comprehensive Income, Net of Tax:
Net Unrealized Gains on Investment Securities,
Net of Reclassification Adjustment	16,411		-		-		16,411		-		-		16,411
Net Losses related to Defined Benefit Plans	(8,113)		-		-		(8,113)		-		-		(8,113)
Total Comprehensive Income													$	168,341
Share-Based Compensation	6,216		-		6,216		-		-		-
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits (389,470 shares)	13,412		1		454		-		(3,843)		16,800
Common Stock Repurchased (2,540,026 shares)	(111,544)		-		-		-		-		(111,544)
Cash Dividends Paid ($1.80 per share)	(84,891)		-		-		-		(84,891)		-
Balance as of December 31, 2011	$	1,002,667	$	571	$	507,558	$	35,263	$	1,003,938	$	(544,663)

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable Equivalent Basis	Table 6a

	Three Months Ended						Three Months Ended						Three Months Ended
	December 31, 2011						September 30, 2011						December 31, 2010
	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	$	3.9	$	-	0.23	%	$	3.7	$	-	0.56	%	$	3.2	$	-	0.81	%
Funds Sold	239.0		0.1		0.20		309.4		0.2		0.20		211.4		0.2		0.30
Investment Securities
Available-for-Sale	3,763.7		19.9		2.12		4,309.3		23.5		2.18		6,468.5		39.8		2.46
Held-to-Maturity	3,259.8		23.6		2.90		2,511.0		20.3		3.24		134.8		1.4		4.12
Loans Held for Sale	14.7		0.2		4.73		9.2		0.1		4.87		13.2		0.1		4.77
Loans and Leases 1
Commercial and Industrial	798.3		8.0		3.99		815.5		8.2		3.97		752.7		7.8		4.13
Commercial Mortgage	929.0		10.9		4.66		876.7		10.7		4.85		838.0		10.5		5.00
Construction	85.7		1.1		4.84		74.5		1.0		5.15		86.1		1.1		5.09
Commercial Lease Financing	311.0		2.1		2.68		314.6		2.0		2.61		352.6		2.3		2.57
Residential Mortgage	2,163.1		27.3		5.05		2,129.8		27.8		5.23		2,078.1		28.4		5.46
Home Equity	778.1		9.0		4.57		780.5		9.3		4.72		821.3		10.3		4.95
Automobile	190.7		3.1		6.40		191.4		3.2		6.66		214.4		4.0		7.38
Other 2	164.5		3.2		7.76		157.4		3.0		7.50		174.6		3.4		7.68
Total Loans and Leases	5,420.4		64.7		4.75		5,340.4		65.2		4.86		5,317.8		67.8		5.07
Other	79.9		0.3		1.40		79.9		0.3		1.40		79.9		0.3		1.39
Total Earning Assets 3	12,781.4		108.8		3.40		12,562.9		109.6		3.48		12,228.8		109.6		3.57
Cash and Noninterest-Bearing Deposits	142.2						135.1						240.3
Other Assets	434.0						427.1						495.9
Total Assets	$	13,357.6					$	13,125.1					$	12,965.0
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	1,799.9	0.1		0.03		$	1,772.5	0.2		0.04		$	1,769.4	0.2		0.06
Savings	4,447.8		1.4		0.13		4,497.1		1.8		0.16		4,486.7		2.6		0.23
Time	1,145.4		2.2		0.76		1,069.4		2.6		0.96		1,050.9		3.1		1.18
Total Interest-Bearing Deposits	7,393.1		3.7		0.20		7,339.0		4.6		0.25		7,307.0		5.9		0.32
Short-Term Borrowings	20.4		-		0.08		19.0		-		0.08		20.1		-		0.14
Securities Sold Under Agreements to Repurchase	1,848.9		7.4		1.57		1,908.9		7.4		1.52		1,774.8		6.4		1.42
Long-Term Debt	30.7		0.5		6.49		30.7		0.5		6.50		40.0		0.7		6.72
Total Interest-Bearing Liabilities	9,293.1		11.6		0.49		9,297.6		12.5		0.53		9,141.9		13.0		0.56
Net Interest Income			$	97.2					$	97.1					$	96.6
Interest Rate Spread					2.91	%					2.95	%					3.01	%
Net Interest Margin					3.04	%					3.09	%					3.15	%
Noninterest-Bearing Demand Deposits	2,767.3						2,532.8						2,370.5
Other Liabilities	275.2						272.1						385.2
Shareholders’ Equity	1,022.0						1,022.6						1,067.4
Total Liabilities and Shareholders’ Equity	$	13,357.6					$	13,125.1					$	12,965.0

1Non-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.

2Comprised of other consumer revolving credit, installment, and consumer lease financing.

3Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $938,000, $364,000, and $300,000 for the three months ended December 31, 2011, September 30, 2011, and December 31, 2010, respectively.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable Equivalent Basis	Table 6b

	Year Ended						Year Ended
	December 31, 2011						December 31, 2010
	Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits	$	4.2	$	-	0.19	%	$	4.7	$	-	0.59	%
Funds Sold	380.2		0.8		0.22		390.2		1.1		0.28
Investment Securities
Available-for-Sale	4,439.8		105.4		2.37		5,854.1		170.1		2.91
Held-to-Maturity	2,279.6		72.2		3.16		154.2		6.5		4.22
Loans Held for Sale	11.0		0.5		4.54		10.8		0.9		8.51
Loans and Leases 1
Commercial and Industrial	790.6		31.8		4.02		764.2		33.7		4.41
Commercial Mortgage	887.1		42.8		4.82		827.7		42.0		5.07
Construction	80.1		4.0		5.06		95.4		4.8		5.08
Commercial Lease Financing	322.1		8.7		2.71		385.1		11.3		2.92
Residential Mortgage	2,126.9		111.5		5.24		2,105.6		118.7		5.64
Home Equity	784.9		37.4		4.76		863.7		43.2		4.99
Automobile	194.4		13.2		6.78		241.2		18.3		7.58
Other 2	163.8		12.4		7.57		189.6		14.5		7.66
Total Loans and Leases	5,349.9		261.8		4.89		5,472.5		286.5		5.23
Other	79.9		1.1		1.40		79.8		1.1		1.39
Total Earning Assets 3	12,544.6		441.8		3.52		11,966.3		466.2		3.90
Cash and Noninterest-Bearing Deposits	135.3						229.6
Other Assets	425.1						491.8
Total Assets	$	13,105.0					$	12,687.7
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	1,786.7	0.7		0.04		$	1,715.8	1.1		0.06
Savings	4,501.0		7.3		0.16		4,465.0		14.7		0.33
Time	1,067.8		10.3		0.96		1,088.7		13.4		1.23
Total Interest-Bearing Deposits	7,355.5		18.3		0.25		7,269.5		29.2		0.40
Short-Term Borrowings	18.2		-		0.11		23.3		-		0.13
Securities Sold Under Agreements to Repurchase	1,845.8		29.2		1.58		1,700.2		26.0		1.53
Long-Term Debt	31.6		2.0		6.23		61.0		3.5		5.81
Total Interest-Bearing Liabilities	9,251.1		49.5		0.53		9,054.0		58.7		0.65
Net Interest Income			$	392.3					$	407.5
Interest Rate Spread					2.99	%					3.25	%
Net Interest Margin					3.13	%					3.41	%
Noninterest-Bearing Demand Deposits	2,569.2						2,239.6
Other Liabilities	264.6						381.4
Shareholders’ Equity	1,020.1						1,012.7
Total Liabilities and Shareholders’ Equity	$	13,105.0					$	12,687.7

1Non-performing loans and leases are included in the respective average loan and lease balances.  Income, if any, on such loans and leases is recognized on a cash basis.

2  Comprised of other consumer revolving credit, installment, and consumer lease financing.

3  Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $2,080,000 and $975,000 for the year ended December 31, 2011 and 2010, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable Equivalent Basis	Table 7a

	Three Months Ended December 31, 2011
	Compared to September 30, 2011
(dollars in millions)	Volume1			Rate1			Total
Change in Interest Income:
Funds Sold	$	(0.1	)	$	-		$	(0.1	)
Investment Securities
Available-for-Sale	(2.9		)	(0.7		)	(3.6		)
Held-to-Maturity	5.6			(2.3		)	3.3
Loans Held for Sale	0.1			-			0.1
Loans and Leases
Commercial and Industrial	(0.2		)	-			(0.2		)
Commercial Mortgage	0.6			(0.4		)	0.2
Construction	0.2			(0.1		)	0.1
Commercial Lease Financing	-			0.1			0.1
Residential Mortgage	0.4			(0.9		)	(0.5		)
Home Equity	-			(0.3		)	(0.3		)
Automobile	-			(0.1		)	(0.1		)
Other 2	0.1			0.1			0.2
Total Loans and Leases	1.1			(1.6		)	(0.5		)
Total Change in Interest Income	3.8			(4.6		)	(0.8		)
Change in Interest Expense:
Interest-Bearing Deposits
Demand	-			(0.1		)	(0.1		)
Savings	-			(0.4		)	(0.4		)
Time	0.1			(0.5		)	(0.4		)
Total Interest-Bearing Deposits	0.1			(1.0		)	(0.9		)
Securities Sold Under Agreements to Repurchase	(0.2		)	0.2			-
Total Change in Interest Expense	(0.1		)	(0.8		)	(0.9		)
Change in Net Interest Income	$	3.9		$	(3.8	)	$	0.1

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.

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 7b

	Three Months Ended December 31, 2011
	Compared to December 31, 2010
(dollars in millions)	Volume1			Rate1			Total
Change in Interest Income:
Funds Sold	$	-		$	(0.1	)	$	(0.1	)
Investment Securities
Available-for-Sale	(15.0		)	(4.9		)	(19.9		)
Held-to-Maturity	22.7			(0.5		)	22.2
Loans Held for Sale	0.1			-			0.1
Loans and Leases
Commercial and Industrial	0.5			(0.3		)	0.2
Commercial Mortgage	1.1			(0.7		)	0.4
Commercial Lease Financing	(0.3		)	0.1			(0.2		)
Residential Mortgage	1.1			(2.2		)	(1.1		)
Home Equity	(0.5		)	(0.8		)	(1.3		)
Automobile	(0.4		)	(0.5		)	(0.9		)
Other 2	(0.2		)	-			(0.2		)
Total Loans and Leases	1.3			(4.4		)	(3.1		)
Total Change in Interest Income	9.1			(9.9		)	(0.8		)
Change in Interest Expense:
Interest-Bearing Deposits
Demand	-			(0.1		)	(0.1		)
Savings	(0.1		)	(1.1		)	(1.2		)
Time	0.3			(1.2		)	(0.9		)
Total Interest-Bearing Deposits	0.2			(2.4		)	(2.2		)
Securities Sold Under Agreements to Repurchase	0.3			0.7			1.0
Long-Term Debt	(0.1		)	(0.1		)	(0.2		)
Total Change in Interest Expense	0.4			(1.8		)	(1.4		)
Change in Net Interest Income	$	8.7		$	(8.1	)	$	0.6

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.

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 7c

	Year Ended December 31, 2011
	Compared to December 31, 2010
(dollars in millions)	Volume1			Rate1			Total
Change in Interest Income:
Funds Sold	$	-		$	(0.3	)	$	(0.3	)
Investment Securities
Available-for-Sale	(36.5		)	(28.2		)	(64.7		)
Held-to-Maturity	67.7			(2.0		)	65.7
Loans Held for Sale	-			(0.4		)	(0.4		)
Loans and Leases
Commercial and Industrial	1.1			(3.0		)	(1.9		)
Commercial Mortgage	2.9			(2.1		)	0.8
Construction	(0.8		)	-			(0.8		)
Commercial Lease Financing	(1.8		)	(0.8		)	(2.6		)
Residential Mortgage	1.2			(8.4		)	(7.2		)
Home Equity	(3.8		)	(2.0		)	(5.8		)
Automobile	(3.3		)	(1.8		)	(5.1		)
Other 2	(1.9		)	(0.2		)	(2.1		)
Total Loans and Leases	(6.4		)	(18.3		)	(24.7		)
Total Change in Interest Income	24.8			(49.2		)	(24.4		)
Change in Interest Expense:
Interest-Bearing Deposits
Demand	-			(0.4		)	(0.4		)
Savings	0.1			(7.5		)	(7.4		)
Time	(0.2		)	(2.9		)	(3.1		)
Total Interest-Bearing Deposits	(0.1		)	(10.8		)	(10.9		)
Securities Sold Under Agreements to Repurchase	2.3			0.9			3.2
Long-Term Debt	(1.8		)	0.3			(1.5		)
Total Change in Interest Expense	0.4			(9.6		)	(9.2		)
Change in Net Interest Income	$	24.4		$	(39.6	)	$	(15.2	)

1The 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.

2Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits	Table 8

	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,
(dollars in thousands)	2011		2011		2010		2011		2010
Salaries	$	28,330	$	28,965	$	30,350	$	115,512	$	119,515
Incentive Compensation	3,881		4,777		5,248		16,367		15,544
Share-Based Compensation and Cash Grants for the Purchase of Company Stock	1,819		743		1,220		5,720		6,805
Commission Expense	1,701		1,572		2,225		6,489		6,666
Retirement and Other Benefits	4,429		3,634		3,564		16,829		15,708
Payroll Taxes	2,030		2,241		2,033		10,645		10,084
Medical, Dental, and Life Insurance	2,322		2,056		1,018		9,039		8,242
Separation Expense	415		319		1,151		2,215		3,149
Total Salaries and Benefits	$	44,927	$	44,307	$	46,809	$	182,816	$	185,713

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances	Table 9

	December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)	2011		2011		2011		2011		2010
Commercial
Commercial and Industrial	$	817,170	$	790,294	$	815,912	$	771,923	$	772,624
Commercial Mortgage	938,250		922,075		872,283		883,360		863,385
Construction	98,669		69,635		81,432		80,360		80,325
Lease Financing	311,928		312,159		316,776		331,491		334,997
Total Commercial	2,166,017		2,094,163		2,086,403		2,067,134		2,051,331
Consumer
Residential Mortgage	2,215,892		2,130,589		2,130,335		2,108,376		2,094,189
Home Equity	780,691		775,105		783,582		787,179		807,479
Automobile	192,506		191,497		191,739		196,649		209,008
Other 1	183,198		157,118		159,414		167,591		173,785
Total Consumer	3,372,287		3,254,309		3,265,070		3,259,795		3,284,461
Total Loans and Leases	$	5,538,304	$	5,348,472	$	5,351,473	$	5,326,929	$	5,335,792

Higher Risk Loans Outstanding

	December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)	2011		2011		2011		2011		2010
Residential Home Building 2	$	13,475	$	15,379	$	16,186	$	14,744	$	14,964
Residential Land Loans 3	18,163		18,305		19,960		21,595		23,745
Home Equity Loans 4	21,413		22,321		21,778		23,783		23,179
Air Transportation 5	36,144		36,511		36,961		37,440		37,879
Total Higher Risk Loans	$	89,195	$	92,516	$	94,885	$	97,562	$	99,767

1Comprised of other revolving credit, installment, and lease financing.

2 Residential home building loans were $29.0 million as of December 31, 2011.  Higher risk loans within this segment are defined as those loans with a well-defined weakness or weaknesses that jeopardizes the orderly repayment of the loan.

3  We consider all of our residential land loans, which are consumer loans secured by unimproved lots, to be of higher risk due to the volatility in the value of the underlying collateral. Residential Land Loans were revised from $18,285 as of September 30, 2011.

4 Higher risk home equity loans are defined as those loans originated in 2005 or later, with current monitoring credit scores below 600, and with original loan-to-value ratios greater than 70%.

5  We consider all of our air transportation leases to be of higher risk due to the weak financial profile of the industry.

Deposits

	December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)	2011		2011		2011		2011		2010
Consumer	$	5,241,827	$	5,137,548	$	5,073,101	$	5,097,056	$	5,082,802
Commercial	4,320,712		4,275,915		4,165,435		4,326,495		4,292,108
Public and Other	1,030,084		595,550		740,498		488,840		514,085
Total Deposits	$	10,592,623	$	10,009,013	$	9,979,034	$	9,912,391	$	9,888,995

Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More	Table 10

	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	2011			2011			2011			2011			2010
Non-Performing Assets 1
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial	$	6,243		$	6,593		$	1,839		$	1,107		$	1,642
Commercial Mortgage	2,140			2,188			3,290			3,421			3,503
Construction	2,080			-			288			288			288
Lease Financing	5			6			8			9			19
Total Commercial	10,468			8,787			5,425			4,825			5,452
Consumer
Residential Mortgage	25,256			23,779			23,970			24,372			28,152
Home Equity	2,024			1,863			2,155			2,602			2,254
Other2	-			-			16			-			-
Total Consumer	27,280			25,642			26,141			26,974			30,406
Total Non-Accrual Loans and Leases	37,748			34,429			31,566			31,799			35,858
Foreclosed Real Estate	3,042			3,341			2,590			2,793			1,928
Total Non-Performing Assets	$	40,790		$	37,770		$	34,156		$	34,592		$	37,786
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial	$	1		$	-		$	-		$	-		$	-
Total Commercial	1			-			-			-			-
Consumer
Residential Mortgage	6,422			7,664			5,854			3,614			5,399
Home Equity	2,194			2,639			1,147			1,100			1,067
Automobile	170			138			167			260			410
Other2	435			414			604			578			707
Total Consumer	9,221			10,855			7,772			5,552			7,583
Total Accruing Loans and Leases Past Due 90 Days or More	$	9,222		$	10,855		$	7,772		$	5,552		$	7,583
Restructured Loans on Accrual Status and Not Past Due 90 Days or More	$	33,703		$	33,140		$	28,193		$	29,513		$	23,724
Total Loans and Leases	$	5,538,304		$	5,348,472		$	5,351,473		$	5,326,929		$	5,335,792
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	0.68%			0.64%			0.59%			0.60%			0.67%
Ratio of Non-Performing Assets to Total Loans and Leases, Loans Held for Sale, and Foreclosed Real Estate	0.73%			0.70%			0.64%			0.65%			0.71%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases, Commercial Loans Held for Sale, and Commercial Foreclosed Real Estate	0.56%			0.52%			0.34%			0.31%			0.31%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate	0.85%			0.82%			0.83%			0.86%			0.95%
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases, Loans Held for Sale, and Foreclosed Real Estate	0.90%			0.91%			0.78%			0.75%			0.85%
Quarter to Quarter Changes in Non-Performing Assets1
Balance at Beginning of Quarter	$	37,770		$	34,156		$	34,592		$	37,786		$	45,174
Additions	8,653			8,552			6,079			5,591			7,042
Reductions
Payments	(1,173		)	(3,237		)	(2,363		)	(2,164		)	(5,019		)
Return to Accrual Status	(2,421		)	(401		)	(3,226		)	(6,408		)	(1,250		)
Sales of Foreclosed Real Estate	(1,320		)	(157		)	(497		)	-			(5,427		)
Charge-offs/Write-downs	(719		)	(1,143		)	(429		)	(213		)	(2,734		)
Total Reductions	(5,633		)	(4,938		)	(6,515		)	(8,785		)	(14,430		)
Balance at End of Quarter	$	40,790		$	37,770		$	34,156		$	34,592		$	37,786

1Excluded from non-performing assets was a contractually binding non-accrual loan held for sale of $7.5 million as of March 31, 2011.

2Comprised of other revolving credit, installment, and lease financing.

Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses	Table 11

	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
(dollars in thousands)	2011			2011			2010			2011			2010
Balance at Beginning of Period	$	148,829		$	150,395		$	152,777		$	152,777		$	149,077
Loans and Leases Charged-Off
Commercial
Commercial and Industrial	(733		)	(4,215		)	(6,528		)	(8,112		)	(21,125		)
Commercial Mortgage	-			-			(745		)	-			(2,048		)
Construction	-			-			-			-			(2,274		)
Lease Financing	-			-			(95		)	-			(500		)
Consumer
Residential Mortgage	(2,888		)	(1,558		)	(3,182		)	(8,174		)	(12,139		)
Home Equity	(3,714		)	(2,528		)	(1,859		)	(10,853		)	(15,052		)
Automobile	(688		)	(715		)	(1,116		)	(3,229		)	(6,425		)
Other 1	(1,585		)	(1,755		)	(2,137		)	(6,392		)	(10,315		)
Total Loans and Leases Charged-Off	(9,608		)	(10,771		)	(15,662		)	(36,760		)	(69,878		)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial	469			994			424			2,434			2,082
Commercial Mortgage	8			530			44			538			68
Construction	-			-			7,321			-			7,321
Lease Financing	29			3,405			118			3,528			158
Consumer
Residential Mortgage	531			740			190			2,152			1,544
Home Equity	469			137			967			1,695			1,597
Automobile	528			650			727			2,479			3,128
Other 1	551			569			593			2,492			2,393
Total Recoveries on Loans and Leases Previously Charged-Off	2,585			7,025			10,384			15,318			18,291
Net Loans and Leases Charged-Off	(7,023		)	(3,746		)	(5,278		)	(21,442		)	(51,587		)
Provision for Credit Losses	2,219			2,180			5,278			12,690			55,287
Balance at End of Period 2	$	144,025		$	148,829		$	152,777		$	144,025		$	152,777
Components
Allowance for Loan and Lease Losses	$	138,606		$	143,410		$	147,358		$	138,606		$	147,358
Reserve for Unfunded Commitments	5,419			5,419			5,419			5,419			5,419
Total Reserve for Credit Losses	$	144,025		$	148,829		$	152,777		$	144,025		$	152,777
Average Loans and Leases Outstanding	$	5,420,352		$	5,340,406		$	5,317,815		$	5,349,938		$	5,472,534
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)	0.51%			0.28%			0.39%			0.40%			0.94%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding	2.50%			2.68%			2.76%			2.50%			2.76%

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 12a

	Retail		Commercial		Investment		Treasury		Consolidated
(dollars in thousands)	Banking		Banking		Services		and Other		Total
Three Months Ended December 31, 2011
Net Interest Income	$	42,333	$	33,727	$	3,784	$	16,402	$	96,246
Provision for Credit Losses	7,236		(212)		(1)		(4,804)		2,219
Net Interest Income After Provision for Credit Losses	35,097		33,939		3,785		21,206		94,027
Noninterest Income	17,513		8,907		13,636		3,351		43,407
Noninterest Expense	(45,523)		(22,494)		(14,125)		(2,240)		(84,382)
Income Before Provision for Income Taxes	7,087		20,352		3,296		22,317		53,052
Provision for Income Taxes	(2,622)		(7,099)		(1,219)		(2,883)		(13,823)
Net Income	4,465		13,253		2,077		19,434		39,229
Total Assets as of December 31, 2011	$	3,147,760	$	2,337,214	$	218,088	$	8,143,329	$	13,846,391
Three Months Ended December 31, 20101
Net Interest Income	$	44,382	$	34,333	$	3,985	$	13,573	$	96,273
Provision for Credit Losses	6,861		(1,383)		(199)		(1)		5,278
Net Interest Income After Provision for Credit Losses	37,521		35,716		4,184		13,574		90,995
Noninterest Income	23,537		9,843		14,134		3,963		51,477
Noninterest Expense	(46,461)		(24,015)		(15,017)		(3,229)		(88,722)
Income Before Provision for Income Taxes	14,597		21,544		3,301		14,308		53,750
Provision for Income Taxes	(5,401)		(7,531)		(1,221)		981		(13,172)
Net Income	9,196		14,013		2,080		15,289		40,578
Total Assets as of December 31, 20101	$	3,078,747	$	2,244,788	$	196,466	$	7,606,786	$	13,126,787

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

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information	Table 12b

	Retail		Commercial		Investment		Treasury		Consolidated
(dollars in thousands)	Banking		Banking		Services		and Other		Total
Year Ended December 31, 2011
Net Interest Income	$	173,982	$	137,351	$	15,137	$	63,738	$	390,208
Provision for Credit Losses	22,341		(938)		64		(8,777)		12,690
Net Interest Income After Provision for Credit Losses	151,641		138,289		15,073		72,515		377,518
Noninterest Income	84,008		37,132		59,891		16,624		197,655
Noninterest Expense	(186,872)		(93,623)		(59,187)		(8,511)		(348,193)
Income Before Provision for Income Taxes	48,777		81,798		15,777		80,628		226,980
Provision for Income Taxes	(18,047)		(28,401)		(5,838)		(14,651)		(66,937)
Net Income	30,730		53,397		9,939		65,977		160,043
Total Assets as of December 31, 2011	$	3,147,760	$	2,337,214	$	218,088	$	8,143,329	$	13,846,391
Year Ended December 31, 20101
Net Interest Income	$	188,673	$	147,016	$	16,567	$	54,224	$	406,480
Provision for Credit Losses	38,377		17,085		(129)		(46)		55,287
Net Interest Income After Provision for Credit Losses	150,296		129,931		16,696		54,270		351,193
Noninterest Income	100,859		41,304		59,948		53,147		255,258
Noninterest Expense	(175,621)		(96,225)		(58,467)		(15,923)		(346,236)
Income Before Provision for Income Taxes	75,534		75,010		18,177		91,494		260,215
Provision for Income Taxes	(27,947)		(22,273)		(6,726)		(19,327)		(76,273)
Net Income	47,587		52,737		11,451		72,167		183,942
Total Assets as of December 31, 20101	$	3,078,747	$	2,244,788	$	196,466	$	7,606,786	$	13,126,787

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

Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data	Table 13

	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands, except per share amounts)	2011			2011			2011			2011			2010
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	64,760		$	65,344		$	65,542		$	66,593		$	67,915
Income on Investment Securities
Available-for-Sale	19,107			23,097			23,490			37,669			39,546
Held-to-Maturity	23,608			20,344			20,553			7,633			1,388
Deposits	2			6			2			(2		)	7
Funds Sold	120			160			297			251			160
Other	280			279			279			279			279
Total Interest Income	107,877			109,230			110,163			112,423			109,295
Interest Expense
Deposits	3,736			4,561			4,792			5,232			5,918
Securities Sold Under Agreements to Repurchase	7,392			7,400			7,338			7,041			6,425
Funds Purchased	5			4			5			6			7
Long-Term Debt	498			499			529			447			672
Total Interest Expense	11,631			12,464			12,664			12,726			13,022
Net Interest Income	96,246			96,766			97,499			99,697			96,273
Provision for Credit Losses	2,219			2,180			3,600			4,691			5,278
Net Interest Income After Provision for Credit Losses	94,027			94,586			93,899			95,006			90,995
Noninterest Income
Trust and Asset Management	11,025			10,788			11,427			11,806			11,190
Mortgage Banking	3,401			5,480			2,661			3,122			4,549
Service Charges on Deposit Accounts	9,606			9,820			9,375			9,932			11,632
Fees, Exchange, and Other Service Charges	12,401			16,219			16,662			14,945			15,196
Investment Securities Gains (Losses), Net	282			-			-			6,084			(1		)
Insurance	2,312			2,664			3,210			2,771			2,309
Other	4,380			5,892			6,128			5,262			6,602
Total Noninterest Income	43,407			50,863			49,463			53,922			51,477
Noninterest Expense
Salaries and Benefits	44,927			44,307			46,800			46,782			46,809
Net Occupancy	11,253			11,113			10,476			10,327			10,504
Net Equipment	4,748			4,662			4,741			4,698			5,902
Professional Fees	1,926			2,245			2,294			2,158			2,116
FDIC Insurance	2,027			2,065			2,010			3,244			3,198
Other	19,501			19,563			27,453			18,873			20,193
Total Noninterest Expense	84,382			83,955			93,774			86,082			88,722
Income Before Provision for Income Taxes	53,052			61,494			49,588			62,846			53,750
Provision for Income Taxes	13,823			18,188			14,440			20,486			13,172
Net Income	$	39,229		$	43,306		$	35,148		$	42,360		$	40,578
Basic Earnings Per Share	$0.85			$0.93			$0.74			$0.89			$0.84
Diluted Earnings Per Share	$0.85			$0.92			$0.74			$0.88			$0.84
Balance Sheet Totals
Loans and Leases	$	5,538,304		$	5,348,472		$	5,351,473		$	5,326,929		$	5,335,792
Total Assets	13,846,391			13,304,758			13,161,204			12,962,304			13,126,787
Total Deposits	10,592,623			10,009,013			9,979,034			9,912,391			9,888,995
Total Shareholders’ Equity	1,002,667			1,017,775			1,003,450			996,225			1,011,133
Performance Ratios
Return on Average Assets	1.17		%	1.31		%	1.09		%	1.32		%	1.24
Return on Average Shareholders’ Equity	15.23			16.80			13.86			16.86			15.08
Efficiency Ratio 1	60.42			56.87			63.81			56.04			60.05
Net Interest Margin 2	3.04			3.09			3.16			3.24			3.15

1The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).

2The net interest margin is defined as net interest income, on a fully-taxable equivalent basis, as a percentage of average earning assets.

Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends	Table 14

	Eleven Months Ended				Year Ended
($ in millions; jobs in thousands)	November 30, 2011				December 31, 2010				December 31, 2009
Hawaii Economic Trends
State General Fund Revenues 1	$	4,258.0	7.8	%	$	4,314.1	7.4	%	$	4,018.2	(12.8	)  %
General Excise and Use Tax Revenue 1	$	2,383.1	9.0		$	2,379.9	3.6		$	2,296.3	(10.6	)
Jobs 2	599.7		1.3		586.8		(0.8	)	591.7		(4.4	)

	November 30,		December 31,
(spot rates)	2011		2010		2009		2008
Unemployment 3
Statewide, seasonally adjusted	6.5	%	6.3	%	6.9	%	5.6	%
Oahu	5.7		4.8		5.4		4.3
Island of Hawaii	9.6		8.6		9.5		7.4
Maui	7.7		7.4		8.8		6.9
Kauai	8.8		7.8		8.7		7.8

	December 31,
(percentage change, except months of inventory)	2011		2010		2009
Housing Trends (Single Family Oahu) 4
Median Home Price	(3.0	)  %	3.1	%	(7.3	)  %
Home Sales Volume (units)	(2.7	)  %	13.4	%	(1.8	)  %
Months of Inventory	4.8		6.0		6.8

	Monthly Visitor Arrivals,		Percentage Change
(in thousands)	Seasonally Adjusted		from Previous Month
Tourism 2
October 31, 2011		605.9		(2.8	)  %
September 30, 2011		623.4		7.7
August 31, 2011		578.6		(1.2	)
July 31, 2011		585.4		2.4
June 30, 2011		572.0		(0.1	)
May 31, 2011		572.5		(2.2	)
April 30, 2011		585.3		1.9
March 31, 2011		574.4		(4.5	)
February 28, 2011		601.6		(0.5	)
January 31, 2011		604.7		1.1
December 31, 2010		598.2		(2.0	)
November 30, 2010		610.6		1.0
October 31, 2010		604.5		0.9
September 30, 2010		598.9		(1.1	)
August 31, 2010		605.9		1.3
July 31, 2010		597.9		1.2
June 30, 2010		590.9		3.1
May 31, 2010		572.9		1.4
April 30, 2010		564.8		1.8
March 31, 2010		554.9		2.6
February 28, 2010		540.6		(0.3	)
January 31, 2010		542.5		(0.1	)

1Source:  Hawaii Department of Business, Economic Development & Tourism.

2Source:  University of Hawaii Economic Research Organization.  Year-to-date figures.

3Source:  University of Hawaii Economic Research Organization, State of Hawaii Department of Labor and Industrial Relations.

4Source:  Honolulu Board of REALTORS.

Note:  Certain prior period seasonally adjusted information has been revised.