Bank of Hawaii Corporation Third Quarter 2009 Financial Results

Diluted Earnings Per Share $0.76

Net Income for the Quarter $36.5 Million

Board of Directors Declares Dividend of $0.45 Per Share

Press Release
Source: Bank of Hawaii Corporation
On 7:00 am EDT, Monday October 26, 2009

HONOLULU--(BUSINESS WIRE)--Bank of Hawaii Corporation (NYSE:BOH - News) today reported diluted earnings per share of $0.76 for the third quarter of 2009, up from $0.65 in the previous quarter, and down from $0.99 in the same quarter last year. Net income for the third quarter of 2009 was $36.5 million compared to net income of $31.0 million in the second quarter of 2009, and $47.4 million in the third quarter of 2008. Results for the third quarter of 2008 included a net credit of $8.9 million related to the Company’s resolution of Sale In/Lease Out (“SILO”) leases with the Internal Revenue Service. The return on average assets for the third quarter of 2009 was 1.21 percent, compared to 1.06 percent during the previous quarter, and 1.82 percent during the same quarter last year. The return on average equity for the third quarter of 2009 was 16.44 percent compared to 14.49 percent for the second quarter of 2009, and 24.17 percent for the third quarter of 2008.

Symbol	Price	Change
BOH	45.72	-0.20

"Bank of Hawaii Corporation had good results for the third quarter of 2009 despite continuing economic weakness," said Allan R. Landon, Chairman, and CEO. "We were able to increase our liquidity, capital, and reserves, improve profitability, and our Board affirmed our dividend. Asset quality indicators were mixed this quarter as we continue to address weakened credits. Bank of Hawaii has a strong balance sheet and remains safe, balanced, and well prepared for the future."

For the nine months, ended September 30, 2009, net income was $103.5 million compared to net income of $152.9 million for the same period last year. Diluted earnings per share were $2.16 for the nine-month period in 2009, down from $3.17 for the same period in 2008. The year-to-date return on average assets was 1.19 percent compared to 1.95 percent for the same period in 2008. The year-to-date return on average equity was 16.24 percent, down from 26.26 percent for the nine months ended September 30, 2008 partially due to the growth in capital.

Results for the nine months ended September 30, 2009 included gains of $13.7 million from the disposition of leased equipment and the sale of the Company’s retail insurance brokerage business. These gains were offset by increases in the allowance for loan and lease losses, expenses for legal contingencies, an industry-wide FDIC special assessment, impairment of a leveraged lease residual value, and early debt retirement. Results for the same period in 2008 included $31.0 million from the mandatory redemption of Visa shares, a reversal of Visa legal costs, and a lessee’s early buy-out of an aircraft lease. Partially offsetting these gains were expenses for employee incentives, legal contingencies, a call premium on Capital Securities, increases in the allowance for loan and lease losses, and contributions to the Bank of Hawaii Charitable Foundation. Details of these items are included in Table 2.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the third quarter of 2009 was $109.2 million, up $6.0 million from net interest income of $103.2 million in the second quarter of 2009, and up $5.4 million from net interest income of $103.8 million in the third quarter of 2008. Net interest income in the third quarter of 2009 included a charge of $1.0 million related to impairment of the residual value of an aircraft leveraged lease investment. The increase in net interest income compared with the second quarter of 2009 was largely due to a higher level of earning assets and a higher net interest margin. Net interest income in the third quarter of 2008 included a $4.0 million reduction of income related to settlement of the SILO leases. For the nine months ended September 30, 2009, net interest income, on a taxable-equivalent basis, was $309.7 million compared to $313.6 million for the same period in 2008. Analyses of the changes in net interest income are included in Tables 7a, 7b and 7c.

The net interest margin was 3.85 percent for the third quarter of 2009, a 12 basis point increase from 3.73 percent in the second quarter of 2009, and a 48 basis point decrease from 4.33 percent in the third quarter of 2008. For the nine months ended September 30, 2009, the net interest margin was 3.78 percent compared to 4.30 percent for the same nine months in 2008. The decrease in the net interest margin was largely the result of lower interest rates and the Company’s strategy to increase liquidity and reduce risk.

Results for the third quarter of 2009 included a provision for credit losses of $27.5 million compared with $28.7 million in the second quarter of 2009 and $20.4 million in the third quarter of 2008. The provision for credit losses exceeded net charge-offs by $5.2 million in the third quarter of 2009. The provision for credit losses exceeded net charge-offs by $3.0 million in the second quarter of 2009 and exceeded net charge-offs by $13.0 million in the third quarter of 2008.

Noninterest income was $56.8 million for the third quarter of 2009, a decrease of $3.0 million compared to $59.8 million in the second quarter of 2009, and essentially flat with noninterest income of $57.0 million in the third quarter of 2008. Noninterest income in the second quarter of 2009 included a gain of $2.8 million related to the disposition of leased equipment and $0.9 million due to the previously mentioned sale of the retail insurance brokerage business.

Noninterest expense was $84.0 million in the third quarter of 2009, down $5.6 million from $89.6 million in the previous quarter, and down $2.8 million from $86.8 million in the same quarter last year. Noninterest expense in the second quarter of 2009 included $5.7 million related to an industry-wide FDIC special assessment. Noninterest expense in the third quarter of 2008 included a $2.0 million broad based employee incentive accrual. An analysis of salary and benefit expenses is included in Table 8.

The efficiency ratio for the third quarter of 2009 was 50.69 percent, compared with an efficiency ratio of 55.07 percent in the previous quarter and 54.05 percent in the same quarter last year. The efficiency ratio for the nine-month period ended September 30, 2009 was 52.74 percent compared with 51.12 percent for the same period last year.

The effective tax rate for the third quarter of 2009 was 32.71 percent, compared to 30.18 percent in the previous quarter, and 11.24 percent during the third quarter last year. Taxes in the third quarter of 2009 included a $0.4 million credit related to the previously mentioned leveraged lease residual value impairment, and taxes in the second quarter of 2009 were reduced by a $1.6 million tax benefit resulting from accounting for the termination of a leveraged lease. The lower effective tax rate in the third quarter of 2008 was due to a credit of $12.9 million related to the previously mentioned SILO lease settlement.

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

Credit quality during the third quarter of 2009 continued to reflect the weak national and local economies. Non-accrual loans and leases were $48.3 million at the end of September 30, 2009, up from $38.6 million at June 30, 2009, and up from $5.6 million at September 30, 2008. As a percentage of total loans and leases, non-accrual loans and leases were 0.81 percent at September 30, 2009. The increase in non-accrual loans was largely in two commercial construction loans.

Accruing loans and leases past due 90 days or more increased $2.7 million during the third quarter of 2009 due to the addition of a $3.0 million commercial construction loan on the island of Hawaii, which offset a small decline in delinquent consumer loans. 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 third quarter of 2009 were $22.3 million, down from $25.7 million in the second quarter of 2009, and up from $7.4 million in the third quarter last year. Net charge-offs for the third quarter of 2009 included $5.8 million in partial charge-offs related to three non-accrual commercial construction loans and $4.0 million in partial charge-offs related to the sale of three syndicated credits.

The allowance for loan and lease losses was $142.7 million at September 30, 2009, up from $137.4 million at June 30, 2009 and $115.5 million at September 30, 2008. The ratio of the allowance for loan and lease losses to total loans and leases increased to 2.41 percent at September 30, 2009. The reserve for unfunded commitments at September 30, 2009 was unchanged at $5.4 million. Details of charge-offs, recoveries and the components of the total reserve for credit losses are summarized in Table 11.

Other Financial Highlights

Total assets were $12.21 billion at September 30, 2009, up slightly from total assets of $12.19 billion at June 30, 2009, and up $1.87 billion from total assets of $10.34 billion at September 30, 2008. Average total assets were $11.99 billion during the third quarter of 2009, up $235 million from average assets of $11.75 billion during the previous quarter, and up $1.65 billion from average assets of $10.34 billion during the third quarter last year. The growth in assets was primarily in investment securities available for sale and is the result of strong deposit generation.

The Company continued to decrease loans during the quarter due to reduced loan demand along with planned credit exits and payoffs to reduce overall portfolio risk. Also in the third quarter of 2009, the Company sold its position in three syndicated loans totaling $19.5 million. Loan and lease portfolio balances, including elements of higher risk, are summarized in Table 9.

Total deposits were $9.25 billion at September 30, 2009, up $230 million from $9.02 billion at June 30, 2009, and up $1.59 billion from $7.66 billion at September 30, 2008. The increase in deposits was widespread among deposit categories except time deposits. Average total deposits were $9.13 billion in the third quarter of 2009, down $91 million from average deposits of $9.22 billion during the previous quarter, and up $1.36 billion from $7.77 billion during the third quarter last year. The Company slowed deposit growth during the third quarter due to the limited lending opportunities. Deposit balances are summarized in Tables 6a, 6b, and 9.

Consistent with the Company’s strategy to build capital levels, no shares were repurchased during the third quarter of 2009. Remaining buyback authority under the share repurchase program was $85.4 million at September 30, 2009. Total shareholders’ equity increased to $902.8 million at September 30, 2009, compared to $845.9 million at June 30, 2009, and $780.0 million at September 30, 2008.

The ratio of tangible common equity to risk weighted assets was 14.56 percent at September 30, 2009, up from 13.02 percent at June 30, 2009, and up from 11.04 percent at September 30, 2008. At September 30, 2009, the Tier 1 leverage ratio was 6.67 percent compared to 6.66 percent at June 30, 2009, and 7.27 percent at September 30, 2008. The decrease in the Tier 1 leverage ratio compared with the same quarter last year was due to the significant growth in investment securities, primarily Treasury and Ginnie Mae securities.

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 December 14, 2009 to shareholders of record at the close of business on November 30, 2009.

On October 9, 2009, the Company signed an agreement to sell certain assets of the Company’s wholesale insurance business, Triad Insurance Agency, Inc. (“Triad”), to a third party. The agreement precludes the Company from competing directly or indirectly with Triad for a period of five years after the closing date of the sale. In connection with this sale, several employees of Triad were hired by the third party. The sale of Triad closed on October 22, 2009 and resulted in a pre-tax gain of approximately $1.5 million. Net income of Triad for the year ended December 31, 2008 was approximately $4.5 million.

Hawaii Economy

Hawaii’s economy during the third quarter of 2009 continued to reflect weakness primarily the result of slow national economic conditions and lower visitor activity in the state. Visitor arrivals appear to be stabilizing. However, visitor spending continues to decline as a result of discounting. State general fund revenues have declined 14.4 percent during the first eight months of 2009 primarily due to a decline in general excise and use taxes. Total jobs have contracted 3.1 percent from the beginning of the year. The statewide unemployment rate improved slightly to 7.2 percent on a seasonally adjusted basis at the end of September compared with 7.3 percent at the end of June. Residential real estate prices in Hawaii continue to hold their value better than many U. S. mainland markets and months of inventory declined to 5.3 months at the end of September. More information on Hawaii economic trends is presented in Table 14.

Conference Call Information

The Company will review its third quarter 2009 financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time). The conference call will be accessible via teleconference and 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 800-510-0146. International participants should call 617-614-3449. No pass code is required. A replay of the conference call will be available for one week beginning Monday, October 26, 2009 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the pass code number 79433710 when prompted. A replay will also be available on the Company’s web site, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2008, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.

Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers, and governments in Hawaii, American Samoa, and the West Pacific. The Company’s principal subsidiary, Bank of Hawaii, was founded in 1897 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.

Bank of Hawaii Corporation and Subsidiaries
Financial Highlights										Table 1
	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share amounts)	2009			2009			2008			2009			2008
For the Period:
Operating Results
Net Interest Income	$	108,887		$	102,851		$	103,575		$	308,800		$	312,923
Provision for Credit Losses		27,500			28,690			20,358			81,077			41,957
Total Noninterest Income		56,800			59,832			56,986			186,997			203,650
Total Noninterest Expense		83,987			89,584			86,790			261,504			264,084
Net Income		36,471			31,006			47,409			103,517			152,906
Basic Earnings Per Share		0.76			0.65			1.00			2.17			3.20
Diluted Earnings Per Share		0.76			0.65			0.99			2.16			3.17
Dividends Declared Per Share		0.45			0.45			0.44			1.35			1.32

Performance Ratios
Return on Average Assets		1.21	%		1.06	%		1.82	%		1.19	%		1.95	%
Return on Average Shareholders' Equity		16.44			14.49			24.17			16.24			26.26
Efficiency Ratio ¹		50.69			55.07			54.05			52.74			51.12
Operating Leverage ²		11.77			(8.04	)		(12.02	)		(7.21	)		8.65
Net Interest Margin ³		3.85			3.73			4.33			3.78			4.30
Dividend Payout Ratio ⁴		59.21			69.23			44.00			62.21			41.25
Average Shareholders' Equity to Average Assets		7.34			7.30			7.55			7.34			7.41

Average Balances
Average Loans and Leases	$	6,034,956		$	6,258,403		$	6,512,453		$	6,245,117		$	6,543,871
Average Assets		11,988,995			11,753,580			10,339,490			11,616,237			10,495,367
Average Deposits		9,131,064			9,222,130			7,772,535			9,036,247			7,893,972
Average Shareholders' Equity		880,003			858,139			780,334			852,347			777,650

Market Price Per Share of Common Stock
Closing	$	41.54		$	35.83		$	53.45		$	41.54		$	53.45
High		42.92			41.42			70.00			45.24			70.00
Low		33.65			31.35			37.46			25.33			37.46

				September 30,			June 30,			December 31,			September 30,
				2009			2009			2008			2008
As of Period End:
Balance Sheet Totals
Loans and Leases				$	5,931,358		$	6,149,911		$	6,530,233		$	6,539,458
Total Assets					12,208,025			12,194,695			10,763,475			10,335,047
Total Deposits					9,250,100			9,019,661			8,292,098			7,658,484
Long-Term Debt					91,424			91,432			203,285			204,616
Total Shareholders' Equity					902,799			845,885			790,704			780,020

Asset Quality
Allowance for Loan and Lease Losses				$	142,658		$	137,416		$	123,498		$	115,498
Non-Performing Assets ⁵					48,536			39,054			14,949			5,927

Financial Ratios
Allowance to Loans and Leases Outstanding					2.41	%		2.23	%		1.89	%		1.77	%
Tier 1 Capital Ratio					13.43			12.56			11.24			11.14
Total Capital Ratio					14.70			13.82			12.49			12.40
Leverage Ratio					6.67			6.66			7.30			7.27
Tangible Common Equity to Total Assets ⁶					7.11			6.65			7.01			7.20
Tangible Common Equity to Risk-Weighted Assets ⁶					14.56			13.02			11.28			11.04

Non-Financial Data
Full-Time Equivalent Employees					2,474			2,533			2,581			2,573
Branches and Offices					85			85			85			84
ATMs					485			486			462			467

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

² Operating leverage is defined as the percentage change in income before the provision for credit losses and the provision for income taxes. Measures are presented on a linked quarter basis.

³ Net interest margin is defined as net interest income, on a taxable equivalent basis, as a percentage of average earning assets.

⁴ Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.

⁵ Excluded from non-performing assets are non-accrual loans held for sale of $7.7 million and $5.2 million as of September 30, 2009 and June 30, 2009, respectively.

⁶ 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
Net Significant Income (Expense) Items										Table 2
	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands)	2009			2009			2008			2009			2008
Leveraged Lease Residual Value Impairment	$	(968	)	$	-		$	-		$	(968	)	$	-
SILO Leveraged Lease		-			-			(3,981	)		-			(3,981	)
Gain on Disposal of Leased Equipment		-			2,782			-			12,818			11,588
Gain on Sale of Insurance Subsidiary		-			852			-			852			-
Gain on Mandatory Redemption of Visa Shares		-			-			-			-			13,737
Increase in Allowance for Loan and Lease Losses		(5,242	)		(3,000	)		(13,000	)		(19,160	)		(24,500	)
FDIC Special Assessment		-			(5,744	)		-			(5,744	)		-
Market Premium on Repurchased Long-Term Privately Placed Debt		-			-			-			(875	)		-
Cash Grants for the Purchase of Company Stock		-			-			-			-			(4,640	)
Employee Incentive Awards		-			-			(2,000	)		-			(6,386	)
Legal Contingencies		-			-			-			(1,500	)		(3,016	)
Bank of Hawaii Charitable Foundation and Other Contributions		-			-			-			-			(2,250	)
Call Premium on Capital Securities		-			-			-			-			(991	)
Separation Expense		-			-			-			-			(615	)
Reversal of Visa Legal Costs		-			-			-			-			5,649
Significant Income (Expense) Items Before the Benefit for Income Taxes		(6,210	)		(5,110	)		(18,981	)		(14,577	)		(15,405	)
Income Tax Impact Related to Lease Transactions		(373	)		(286	)		(12,920	)		3,213			(14,331	)
Income Tax Impact		(1,835	)		(2,762	)		(5,250	)		(9,249	)		(8,095	)
Net Significant Income (Expense) Items	$	(4,002	)	$	(2,062	)	$	(811	)	$	(8,541	)	$	7,021

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income								Table 3
	Three Months Ended							Nine Months Ended
	September 30,			June 30,		September 30,		September 30,
(dollars in thousands, except per share amounts)	2009			2009		2008 ¹		2009		2008 ¹
Interest Income
Interest and Fees on Loans and Leases	$	79,530		$	83,342	$	92,744	$	249,464	$	295,116
Income on Investment Securities
Trading		-			-		1,174		594		3,543
Available-for-Sale		46,419			38,155		35,152		116,875		104,724
Held-to-Maturity		2,179			2,369		2,870		7,115		9,142
Deposits		3			5		33		18		432
Funds Sold		320			526		141		1,423		1,553
Other		277			276		490		829		1,405
Total Interest Income		128,728			124,673		132,604		376,318		415,915
Interest Expense
Deposits		12,235			14,481		17,736		43,741		65,439
Securities Sold Under Agreements to Repurchase		6,394			6,477		7,675		19,523		25,780
Funds Purchased		5			5		507		15		1,410
Short-Term Borrowings		-			-		13		-		59
Long-Term Debt		1,207			859		3,098		4,239		10,304
Total Interest Expense		19,841			21,822		29,029		67,518		102,992
Net Interest Income		108,887			102,851		103,575		308,800		312,923
Provision for Credit Losses		27,500			28,690		20,358		81,077		41,957
Net Interest Income After Provision for Credit Losses		81,387			74,161		83,217		227,723		270,966
Noninterest Income
Trust and Asset Management		10,915			11,881		14,193		34,428		44,739
Mortgage Banking		4,656			5,443		621		18,777		7,656
Service Charges on Deposit Accounts		14,014			12,910		13,045		40,310		37,539
Fees, Exchange, and Other Service Charges		14,801			15,410		15,604		45,187		47,098
Investment Securities Gains (Losses), Net		(5	)		12		159		63		446
Insurance		7,304			4,744		5,902		17,689		18,622
Other		5,115			9,432		7,462		30,543		47,550
Total Noninterest Income		56,800			59,832		56,986		186,997		203,650
Noninterest Expense
Salaries and Benefits		46,387			44,180		46,764		137,595		148,221
Net Occupancy		10,350			10,008		11,795		30,686		33,581
Net Equipment		4,502			4,502		4,775		13,320		13,570
Professional Fees		2,642			4,005		3,270		9,196		8,471
FDIC Insurance		3,290			8,987		321		14,091		817
Other		16,816			17,902		19,865		56,616		59,424
Total Noninterest Expense		83,987			89,584		86,790		261,504		264,084
Income Before Provision for Income Taxes		54,200			44,409		53,413		153,216		210,532
Provision for Income Taxes		17,729			13,403		6,004		49,699		57,626
Net Income	$	36,471		$	31,006	$	47,409	$	103,517	$	152,906
Basic Earnings Per Share	$	0.76		$	0.65	$	1.00	$	2.17	$	3.20
Diluted Earnings Per Share	$	0.76		$	0.65	$	0.99	$	2.16	$	3.17
Dividends Declared Per Share	$	0.45		$	0.45	$	0.44	$	1.35	$	1.32
Basic Weighted Average Shares		47,745,375			47,682,604		47,518,078		47,665,146		47,738,245
Diluted Weighted Average Shares		48,045,873			47,948,531		48,057,965		47,930,271		48,295,901

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

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition							Table 4
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands)	2009			2009			2008			2008 ¹
Assets
Interest-Bearing Deposits	$	5,863		$	4,537		$	5,094		$	13,845
Funds Sold		401,200			656,000			405,789			-
Investment Securities
Trading		-			-			91,500			90,993
Available-for-Sale		4,827,588			4,292,911			2,519,239			2,572,111
Held-to-Maturity (Fair Value of $201,118; $214,484; $242,175; and $245,720)		194,444			209,807			239,635			249,083
Loans Held for Sale		19,346			40,994			21,540			14,903
Loans and Leases		5,931,358			6,149,911			6,530,233			6,539,458
Allowance for Loan and Lease Losses		(142,658	)		(137,416	)		(123,498	)		(115,498	)
Net Loans and Leases		5,788,700			6,012,495			6,406,735			6,423,960
Total Earning Assets		11,237,141			11,216,744			9,689,532			9,364,895
Cash and Noninterest-Bearing Deposits		291,480			294,022			385,599			285,762
Premises and Equipment		110,173			112,681			116,120			118,333
Customers' Acceptances		950			2,084			1,308			1,250
Accrued Interest Receivable		43,047			43,042			39,905			41,061
Foreclosed Real Estate		201			438			428			293
Mortgage Servicing Rights		25,437			24,731			21,057			27,707
Goodwill		34,959			34,959			34,959			34,959
Other Assets		464,637			465,994			474,567			460,787
Total Assets	$	12,208,025		$	12,194,695		$	10,763,475		$	10,335,047

Liabilities
Deposits
Noninterest-Bearing Demand	$	2,055,872		$	2,109,270		$	1,754,724		$	1,592,251
Interest-Bearing Demand		1,588,705			1,589,300			1,854,611			1,708,183
Savings		4,365,257			4,054,039			3,104,863			2,780,798
Time		1,240,266			1,267,052			1,577,900			1,577,252
Total Deposits		9,250,100			9,019,661			8,292,098			7,658,484
Funds Purchased		8,670			8,670			15,734			189,700
Short-Term Borrowings		7,200			10,000			4,900			10,621
Securities Sold Under Agreements to Repurchase		1,524,755			1,799,794			1,028,835			1,109,431
Long-Term Debt (includes $119,275 and $120,598 carried at fair value as of December 31, 2008 and September 30, 2008, respectively)		91,424			91,432			203,285			204,616
Banker's Acceptances		950			2,084			1,308			1,250
Retirement Benefits Payable		43,918			54,286			54,776			22,438
Accrued Interest Payable		9,740			7,765			13,837			12,702
Taxes Payable and Deferred Taxes		254,375			226,936			229,699			240,795
Other Liabilities		114,094			128,182			128,299			104,990
Total Liabilities		11,305,226			11,348,810			9,972,771			9,555,027
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: September 30, 2009 - 57,028,554 / 47,937,543; June 30, 2009 - 57,028,940 / 47,881,083; December 31, 2008 - 57,019,887 / 47,753,371; and September 30, 2008 - 57,022,797 / 47,707,629)		569			569			568			568
Capital Surplus		492,346			491,784			492,515			491,419
Accumulated Other Comprehensive Income (Loss)		37,307			(1,870	)		(28,888	)		(18,643	)
Retained Earnings		825,709			811,121			787,924			770,373
Treasury Stock, at Cost (Shares: September 30, 2009 - 9,091,011; June 30, 2009 - 9,147,857; December 31, 2008 - 9,266,516; and September 30, 2008 - 9,315,168)		(453,132	)		(455,719	)		(461,415	)		(463,697	)
Total Shareholders' Equity		902,799			845,885			790,704			780,020
Total Liabilities and Shareholders' Equity	$	12,208,025		$	12,194,695		$	10,763,475		$	10,335,047

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

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity															Table 5
									Accum.
									Other
									Compre-
									hensive									Compre-
				Common		Capital			(Loss)			Retained			Treasury			hensive
(dollars in thousands)	Total			Stock		Surplus			Income			Earnings			Stock			Income
Balance as of December 31, 2008	$	790,704		$	568	$	492,515		$	(28,888	)	$	787,924		$	(461,415	)
Comprehensive Income:
Net Income		103,517			-		-			-			103,517			-		$	103,517
Other Comprehensive Income, Net of Tax:
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale		65,121			-		-			65,121			-			-			65,121
Amortization of Net Loss Related to Pension and Postretirement Benefit Plans		1,074			-		-			1,074			-			-			1,074
Total Comprehensive Income																		$	169,712
Share-Based Compensation		1,700			-		1,700			-			-			-
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (209,847 shares)		6,202			1		(1,869	)		-			(1,101	)		9,171
Common Stock Repurchased (25,675 shares)		(888	)		-		-			-			-			(888	)
Cash Dividends Paid		(64,631	)		-		-			-			(64,631	)		-
Balance as of September 30, 2009	$	902,799		$	569	$	492,346		$	37,307		$	825,709		$	(453,132	)

Balance as of December 31, 2007	$	750,255		$	567	$	484,790		$	(5,091	)	$	688,638		$	(418,649	)
Cumulative-Effect Adjustment of a Change in Accounting Principle, Net of Tax:
Adoption of Accounting Principles Related to the Fair Value Option		(2,736	)		-		-			-			(2,736	)		-
Comprehensive Income:
Net Income		152,906			-		-			-			152,906			-		$	152,906
Other Comprehensive Income, Net of Tax:
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale		(13,699	)		-		-			(13,699	)		-			-			(13,699	)
Amortization of Net Loss Related to Pension and Postretirement Benefit Plans		147			-		-			147			-			-			147
Total Comprehensive Income																		$	139,354
Share-Based Compensation		4,480			-		4,480			-			-			-
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits (378,382 shares)		13,728			1		2,149			-			(5,075	)		16,653
Common Stock Repurchased (1,260,398 shares)		(61,701	)		-		-			-			-			(61,701	)
Cash Dividends Paid		(63,360	)		-		-			-			(63,360	)		-
Balance as of September 30, 2008	$	780,020		$	568	$	491,419		$	(18,643	)	$	770,373		$	(463,697	)

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
	September 30, 2009						June 30, 2009						September 30, 2008 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	$	5.1	$	-	0.28	%	$	5.2	$	-	0.36	%	$	6.4	$	-	2.06	%
Funds Sold		489.7		0.3	0.26			833.2		0.5	0.25			28.4		0.1	1.96
Investment Securities
Trading		-		-	-			-		-	-			92.6		1.2	5.07
Available-for-Sale		4,491.2		46.7	4.16			3,662.1		38.5	4.21			2,601.2		35.4	5.44
Held-to-Maturity		202.0		2.2	4.31			219.9		2.4	4.31			255.4		2.9	4.50
Loans Held for Sale		25.2		0.2	2.95			24.1		0.2	4.21			6.6		0.1	6.34
Loans and Leases ²
Commercial and Industrial		884.4		9.0	4.06			984.1		9.9	4.02			1,049.7		13.8	5.23
Commercial Mortgage		787.0		10.2	5.14			763.8		9.9	5.22			695.3		10.5	6.04
Construction		140.9		1.4	3.81			144.5		1.5	4.03			161.4		2.3	5.67
Commercial Lease Financing		464.0		3.0	2.56			450.2		3.5	3.13			472.9		0.2	0.15
Residential Mortgage		2,273.8		33.0	5.81			2,359.0		34.6	5.88			2,480.7		37.6	6.05
Home Equity		963.3		12.3	5.08			999.3		12.6	5.07			994.6		14.4	5.77
Automobile		304.5		6.1	7.88			325.5		6.5	7.96			403.6		8.2	8.09
Other ³		217.1		4.3	7.95			232.0		4.6	7.89			254.3		5.6	8.80
Total Loans and Leases		6,035.0		79.3	5.24			6,258.4		83.1	5.32			6,512.5		92.6	5.67
Other		79.7		0.3	1.39			79.7		0.3	1.39			79.6		0.5	2.46
Total Earning Assets ⁴		11,327.9		129.0	4.54			11,082.6		125.0	4.52			9,582.7		132.8	5.53
Cash and Noninterest-Bearing Deposits		203.5						203.9						274.3
Other Assets		457.6						467.1						482.5
Total Assets	$	11,989.0					$	11,753.6					$	10,339.5

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	1,625.6		0.2	0.06		$	1,907.7		0.3	0.07		$	1,793.0		1.5	0.32
Savings		4,190.2		6.6	0.63			4,036.9		7.8	0.77			2,790.3		6.3	0.90
Time		1,264.7		5.4	1.69			1,330.6		6.4	1.92			1,594.8		9.9	2.48
Total Interest-Bearing Deposits		7,080.5		12.2	0.69			7,275.2		14.5	0.80			6,178.1		17.7	1.14
Short-Term Borrowings		18.1		-	0.12			16.4		-	0.12			116.7		0.5	1.74
Securities Sold Under Agreements to Repurchase		1,464.3		6.4	1.71			1,168.2		6.5	2.20			1,077.4		7.7	2.80
Long-Term Debt		91.4		1.2	5.26			71.1		0.8	4.84			205.1		3.1	6.04
Total Interest-Bearing Liabilities		8,654.3		19.8	0.91			8,530.9		21.8	1.02			7,577.3		29.0	1.52
Net Interest Income			$	109.2					$	103.2					$	103.8
Interest Rate Spread					3.63	%					3.50	%					4.01	%
Net Interest Margin					3.85	%					3.73	%					4.33	%
Noninterest-Bearing Demand Deposits		2,050.5						1,946.9						1,594.4
Other Liabilities		404.2						417.7						387.5
Shareholders' Equity		880.0						858.1						780.3
Total Liabilities and Shareholders' Equity	$	11,989.0					$	11,753.6					$	10,339.5

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

² Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

³ Comprised of other consumer revolving credit, installment, and consumer lease financing.

⁴ Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $329,000, $331,000, and $234,000 for the three months ended September 30, 2009, June 30, 2009, and September 30, 2008, respectively.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable Equivalent Basis									Table 6b
	Nine Months Ended						Nine Months Ended
	September 30, 2009						September 30, 2008 ¹
	Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits	$	5.0	$	-	0.49	%	$	22.2	$	0.4	2.56	%
Funds Sold		743.7		1.4	0.25			82.6		1.6	2.47
Investment Securities
Trading		16.1		0.6	4.92			95.3		3.5	4.96
Available-for-Sale		3,600.8		117.8	4.36			2,627.5		105.5	5.35
Held-to-Maturity		218.9		7.1	4.33			270.1		9.1	4.51
Loans Held for Sale		23.7		0.7	3.82			8.8		0.4	5.79
Loans and Leases ²
Commercial and Industrial		966.1		29.4	4.06			1,058.5		44.6	5.64
Commercial Mortgage		760.7		29.7	5.23			669.2		31.1	6.21
Construction		146.5		4.4	4.02			179.4		8.2	6.09
Commercial Lease Financing		459.0		10.1	2.95			473.8		8.3	2.33
Residential Mortgage		2,356.1		104.0	5.89			2,490.5		113.7	6.09
Home Equity		996.9		38.0	5.09			990.6		45.1	6.07
Automobile		328.6		19.5	7.93			421.7		25.7	8.14
Other ³		231.3		13.7	7.90			260.2		18.0	9.22
Total Loans and Leases		6,245.2		248.8	5.32			6,543.9		294.7	6.01
Other		79.7		0.8	1.39			79.6		1.4	2.35
Total Earning Assets ⁴		10,933.1		377.2	4.60			9,730.0		416.6	5.71
Cash and Noninterest-Bearing Deposits		216.8						280.4
Other Assets		466.3						485.0
Total Assets	$	11,616.2					$	10,495.4

Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	1,806.4		0.9	0.06		$	1,635.6		4.9	0.40
Savings		3,922.4		22.6	0.77			2,802.2		22.1	1.06
Time		1,364.5		20.3	1.98			1,662.6		38.4	3.09
Total Interest-Bearing Deposits		7,093.3		43.8	0.82			6,100.4		65.4	1.43
Short-Term Borrowings		17.7		-	0.11			86.0		1.5	2.25
Securities Sold Under Agreements to Repurchase		1,191.2		19.5	2.16			1,100.5		25.8	3.10
Long-Term Debt		103.4		4.2	5.47			223.0		10.3	6.16
Total Interest-Bearing Liabilities		8,405.6		67.5	1.07			7,509.9		103.0	1.83
Net Interest Income			$	309.7					$	313.6
Interest Rate Spread					3.53	%					3.88	%
Net Interest Margin					3.78	%					4.30	%
Noninterest-Bearing Demand Deposits		1,943.0						1,793.5
Other Liabilities		415.3						414.3
Shareholders' Equity		852.3						777.7
Total Liabilities and Shareholders' Equity	$	11,616.2					$	10,495.4

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

² Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

³ Comprised of other consumer revolving credit, installment, and consumer lease financing.

⁴ Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $886,000 and $711,000 for the nine months ended September 30, 2009 and 2008, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable Equivalent Basis									Table 7a
	Three Months Ended September 30, 2009
	Compared to June 30, 2009
(dollars in millions)	Volume ¹			Rate ¹			Time ¹			Total
Change in Interest Income:
Funds Sold	$	(0.2	)	$	-		$	-		$	(0.2	)
Investment Securities
Available-for-Sale		8.4			(0.5	)		0.3			8.2
Held-to-Maturity		(0.2	)		-			-			(0.2	)
Loans and Leases
Commercial and Industrial		(1.1	)		0.1			0.1			(0.9	)
Commercial Mortgage		0.3			(0.1	)		0.1			0.3
Construction		-			(0.1	)		-			(0.1	)
Commercial Lease Financing		0.1			(0.6	)		-			(0.5	)
Residential Mortgage		(1.5	)		(0.5	)		0.4			(1.6	)
Home Equity		(0.3	)		-			-			(0.3	)
Automobile		(0.4	)		(0.1	)		0.1			(0.4	)
Other ²		(0.3	)		-			-			(0.3	)
Total Loans and Leases		(3.2	)		(1.3	)		0.7			(3.8	)
Total Change in Interest Income		4.8			(1.8	)		1.0			4.0

Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.1	)		-			-			(0.1	)
Savings		0.3			(1.5	)		-			(1.2	)
Time		(0.3	)		(0.8	)		0.1			(1.0	)
Total Interest-Bearing Deposits		(0.1	)		(2.3	)		0.1			(2.3	)
Securities Sold Under Agreements to Repurchase		1.5			(1.7	)		0.1			(0.1	)
Long-Term Debt		0.3			0.1			-			0.4
Total Change in Interest Expense		1.7			(3.9	)		0.2			(2.0	)

Change in Net Interest Income	$	3.1		$	2.1		$	0.8		$	6.0

¹ The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume, rate, and time 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 September 30, 2009
	Compared to September 30, 2008
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	0.4		$	(0.2	)	$	0.2
Investment Securities
Trading		(0.6	)		(0.6	)		(1.2	)
Available-for-Sale		21.1			(9.8	)		11.3
Held-to-Maturity		(0.6	)		(0.1	)		(0.7	)
Loans Held for Sale		0.2			(0.1	)		0.1
Loans and Leases
Commercial and Industrial		(2.0	)		(2.8	)		(4.8	)
Commercial Mortgage		1.3			(1.6	)		(0.3	)
Construction		(0.2	)		(0.7	)		(0.9	)
Commercial Lease Financing		-			2.8			2.8
Residential Mortgage		(3.1	)		(1.5	)		(4.6	)
Home Equity		(0.4	)		(1.7	)		(2.1	)
Automobile		(1.9	)		(0.2	)		(2.1	)
Other ²		(0.8	)		(0.5	)		(1.3	)
Total Loans and Leases		(7.1	)		(6.2	)		(13.3	)
Other		-			(0.2	)		(0.2	)
Total Change in Interest Income		13.4			(17.2	)		(3.8	)

Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.2	)		(1.1	)		(1.3	)
Savings		2.6			(2.3	)		0.3
Time		(1.8	)		(2.7	)		(4.5	)
Total Interest-Bearing Deposits		0.6			(6.1	)		(5.5	)
Short-Term Borrowings		(0.2	)		(0.3	)		(0.5	)
Securities Sold Under Agreements to Repurchase		2.2			(3.5	)		(1.3	)
Long-Term Debt		(1.5	)		(0.4	)		(1.9	)
Total Change in Interest Expense		1.1			(10.3	)		(9.2	)

Change in Net Interest Income	$	12.3		$	(6.9	)	$	5.4

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.

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
	Nine Months Ended September 30, 2009
	Compared to September 30, 2008
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Interest-Bearing Deposits	$	(0.2	)	$	(0.2	)	$	(0.4	)
Funds Sold		2.3			(2.5	)		(0.2	)
Investment Securities
Trading		(2.9	)		-			(2.9	)
Available-for-Sale		34.2			(21.9	)		12.3
Held-to-Maturity		(1.7	)		(0.3	)		(2.0	)
Loans Held for Sale		0.5			(0.2	)		0.3
Loans and Leases
Commercial and Industrial		(3.5	)		(11.7	)		(15.2	)
Commercial Mortgage		3.9			(5.3	)		(1.4	)
Construction		(1.3	)		(2.5	)		(3.8	)
Commercial Lease Financing		(0.3	)		2.1			1.8
Residential Mortgage		(6.1	)		(3.6	)		(9.7	)
Home Equity		0.3			(7.4	)		(7.1	)
Automobile		(5.6	)		(0.6	)		(6.2	)
Other ²		(1.9	)		(2.4	)		(4.3	)
Total Loans and Leases		(14.5	)		(31.4	)		(45.9	)
Other		-			(0.6	)		(0.6	)
Total Change in Interest Income		17.7			(57.1	)		(39.4	)

Change in Interest Expense:
Interest-Bearing Deposits
Demand		0.5			(4.5	)		(4.0	)
Savings		7.5			(7.0	)		0.5
Time		(6.1	)		(12.0	)		(18.1	)
Total Interest-Bearing Deposits		1.9			(23.5	)		(21.6	)
Short-Term Borrowings		(0.7	)		(0.8	)		(1.5	)
Securities Sold Under Agreements to Repurchase		2.0			(8.3	)		(6.3	)
Long-Term Debt		(5.0	)		(1.1	)		(6.1	)
Total Change in Interest Expense		(1.8	)		(33.7	)		(35.5	)

Change in Net Interest Income	$	19.5		$	(23.4	)	$	(3.9	)

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.

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

Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits							Table 8
	Three Months Ended							Nine Months Ended
	September 30,		June 30,		September 30,			September 30,
(dollars in thousands)	2009		2009		2008			2009		2008
Salaries	$	29,988	$	30,732	$	30,190		$	90,565	$	89,112
Incentive Compensation		5,524		3,407		5,969			12,223		16,358
Share-Based Compensation and Cash Grants for the Purchase of Company Stock		595		604		1,180			1,986		8,592
Commission Expense		1,523		1,750		1,653			5,528		5,518
Retirement and Other Benefits		3,962		3,804		3,097			12,385		11,822
Payroll Taxes		2,176		2,344		2,162			8,020		8,067
Medical, Dental, and Life Insurance		2,619		1,236		2,452			6,519		7,421
Separation Expense		-		303		61			369		1,331
Total Salaries and Benefits	$	46,387	$	44,180	$	46,764		$	137,595	$	148,221

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances								Table 9
		September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)		2009		2009		2009		2008		2008 (1)
Commercial
	Commercial and Industrial	$	845,056	$	932,444	$	1,000,640	$	1,053,781	$	1,077,314
	Commercial Mortgage		777,498		788,226		726,193		740,779		708,961
	Construction		137,414		140,455		153,754		153,952		153,364
	Lease Financing		458,696		468,030		454,822		468,140		467,279
Total Commercial			2,218,664		2,329,155		2,335,409		2,416,652		2,406,918
Consumer
	Residential Mortgage		2,246,729		2,309,971		2,402,061		2,461,824		2,478,925
	Home Equity		952,076		977,632		1,016,381		1,033,221		1,004,437
	Automobile		299,657		309,877		343,642		369,789		395,015
	Other ²		214,232		223,276		241,233		248,747		254,163
Total Consumer			3,712,694		3,820,756		4,003,317		4,113,581		4,132,540
Total Loans and Leases		$	5,931,358	$	6,149,911	$	6,338,726	$	6,530,233	$	6,539,458


Higher Risk Loans Outstanding
		September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)		2009		2009		2009		2008		2008
Residential Home Building ³		$	38,592	$	22,850	$	8,536	$	5,001	$	6,944
Residential Land Loans ⁴			43,128		47,871		50,663		54,483		58,401
Home Equity Loans ⁵			24,339		21,832		19,431		14,917		14,028
Air Transportation ⁶			60,996		62,148		76,303		79,692		79,758


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

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

³ Residential home building loans are collateralized by residential developments and comprised 62% of total commercial construction as of September 30, 2009. Higher risk exposures represent 45% of total residential home building and include $16,462 outside of Oahu and $10,282 in non-performing assets as of September 30, 2009.

⁴ Included in residential mortgage, residential land loans are collateralized by land and includes $36,613 outside of Oahu as of September 30, 2009.

⁵ Current FICO of 600 or less and original LTV above 70%, all originated after 2004.

⁶ Equity in nine leases, eight of which are leveraged, all to passenger carriers, one of which is based outside the United States as of September 30, 2009.


Deposits
		September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)		2009		2009		2009		2008		2008
Consumer		$	4,776,626	$	4,747,612	$	4,702,494	$	4,593,248	$	4,460,965
Commercial			4,002,068		3,828,521		3,645,842		3,221,668		2,835,699
Public and Other			471,406		443,528		864,455		477,182		361,820
Total Deposits		$	9,250,100	$	9,019,661	$	9,212,791	$	8,292,098	$	7,658,484

Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More												Table 10
			September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)			2009			2009			2009			2008			2008
Non-Performing Assets ¹
Non-Accrual Loans and Leases
	Commercial
		Commercial and Industrial	$	9,924		$	10,511		$	21,839		$	3,869		$	574
		Commercial Mortgage		1,193			1,219			-			-			-
		Construction		15,534			6,548			5,001			5,001			-
		Lease Financing		690			956			910			133			149
	Total Commercial			27,341			19,234			27,750			9,003			723
	Consumer
		Residential Mortgage		16,718			16,265			9,230			3,904			3,749
		Home Equity		3,726			2,567			1,620			1,614			1,162
		Other ²		550			550			1,383			-			-
	Total Consumer			20,994			19,382			12,233			5,518			4,911
Total Non-Accrual Loans and Leases				48,335			38,616			39,983			14,521			5,634
Foreclosed Real Estate				201			438			346			428			293
Total Non-Performing Assets			$	48,536		$	39,054		$	40,329		$	14,949		$	5,927

Accruing Loans and Leases Past Due 90 Days or More
Commercial
	Commercial and Industrial		$	137		$	13		$	-		$	6,785		$	-
	Construction			3,005			-			-			-			-
	Lease Financing			-			-			257			268			-
Total Commercial				3,142			13			257			7,053			-
Consumer
	Residential Mortgage			5,951			4,657			4,794			4,192			3,455
	Home Equity			1,698			2,879			1,720			1,077			296
	Automobile			749			769			776			743			758
	Other ²			739			1,270			1,100			1,134			926
Total Consumer				9,137			9,575			8,390			7,146			5,435
Total Accruing Loans and Leases Past Due 90 Days or More			$	12,279		$	9,588		$	8,647		$	14,199		$	5,435

Restructured Loans Not Included in Non-Accrual Loans and Accruing Loans Past Due 90 Days or More			$	7,578		$	2,307		$	-		$	-		$	-

Total Loans and Leases			$	5,931,358		$	6,149,911		$	6,338,726		$	6,530,233		$	6,539,458

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases				0.81	%		0.63	%		0.63	%		0.22	%		0.09	%

Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate				0.82	%		0.63	%		0.64	%		0.23	%		0.09	%

Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases				1.23	%		0.83	%		1.19	%		0.37	%		0.03	%

Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Foreclosed Real Estate				0.57	%		0.52	%		0.31	%		0.14	%		0.13	%

Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases and Foreclosed Real Estate				1.03	%		0.79	%		0.77	%		0.45	%		0.17	%

Quarter to Quarter Changes in Non-Performing Assets ¹
Balance at Beginning of Quarter			$	39,054		$	40,329		$	14,949		$	5,927		$	6,680
Additions				22,856			22,459			29,164			15,464			1,355
Reductions
	Payments			(6,899	)		(15,593	)		(874	)		(2,440	)		(955	)
	Return to Accrual Status			(3,373	)		(230	)		(768	)		(1,468	)		(756	)
	Sales of Foreclosed Real Estate			(237	)		-			(82	)		-			-
	Charge-offs/Write-downs			(2,865	)		(7,911	)		(2,060	)		(2,534	)		(397	)
Total Reductions				(13,374	)		(23,734	)		(3,784	)		(6,442	)		(2,108	)
Balance at End of Quarter			$	48,536		$	39,054		$	40,329		$	14,949		$	5,927


¹ Excluded from non-performing assets are non-accrual loans held for sale of $7.7 million and $5.2 million as of September 30, 2009 and June 30, 2009, respectively.
² Comprised of other revolving credit, installment, and lease financing.

Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses												Table 11
			Three Months Ended									Nine Months Ended
			September 30,			June 30,			September 30,			September 30,
(dollars in thousands)			2009			2009 ¹			2008			2009			2008
Balance at Beginning of Period			$	142,835		$	139,835		$	107,667		$	128,667		$	96,167
Loans and Leases Charged-Off
	Commercial
		Commercial and Industrial		(4,769	)		(12,260	)		(1,783	)		(23,493	)		(4,568	)
		Commercial Mortgage		(2,092	)		-			-			(2,092	)		-
		Construction		(5,845	)		-			-			(5,845	)		-
		Lease Financing		(120	)		(4,473	)		(27	)		(4,613	)		(303	)
	Consumer
		Residential Mortgage		(2,430	)		(1,814	)		(398	)		(5,071	)		(531	)
		Home Equity		(3,614	)		(3,303	)		(519	)		(9,233	)		(1,798	)
		Automobile		(2,602	)		(2,110	)		(2,858	)		(7,694	)		(7,960	)
		Other ²		(3,032	)		(3,643	)		(3,444	)		(10,252	)		(8,202	)
Total Loans and Leases Charged-Off				(24,504	)		(27,603	)		(9,029	)		(68,293	)		(23,362	)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
		Commercial and Industrial		252			228			220			1,022			1,407
		Lease Financing		49			30			2			81			7
	Consumer
		Residential Mortgage		448			126			67			719			162
		Home Equity		67			76			36			239			83
		Automobile		849			735			699			2,311			2,195
		Other ²		581			718			647			2,004			2,051
Total Recoveries on Loans and Leases Previously Charged-Off				2,246			1,913			1,671			6,376			5,905
Net Loans and Leases Charged-Off				(22,258	)		(25,690	)		(7,358	)		(61,917	)		(17,457	)
Provision for Credit Losses				27,500			28,690			20,358			81,077			41,957
Provision for Unfunded Commitments				-			-			-			250			-
Balance at End of Period ³			$	148,077		$	142,835		$	120,667		$	148,077		$	120,667

Components
Allowance for Loan and Lease Losses			$	142,658		$	137,416		$	115,498		$	142,658		$	115,498
Reserve for Unfunded Commitments				5,419			5,419			5,169			5,419			5,169
Total Reserve for Credit Losses			$	148,077		$	142,835		$	120,667		$	148,077		$	120,667

Average Loans and Leases Outstanding			$	6,034,956		$	6,258,403		$	6,512,453		$	6,245,117		$	6,543,871

Ratio of Net Loans and Leases Charged-Off to
	Average Loans and Leases Outstanding (annualized)			1.46	%		1.65	%		0.45	%		1.33	%		0.36	%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding				2.41	%		2.23	%		1.77	%		2.41	%		1.77	%


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

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

³ 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 September 30, 2009
Net Interest Income	$	54,059		$	39,650		$	4,275		$	10,903		$	108,887
Provision for Credit Losses		15,599			11,918			33			(50	)		27,500
Net Interest Income After Provision for Credit Losses		38,460			27,732			4,242			10,953			81,387
Noninterest Income		25,095			14,668			14,026			3,011			56,800
Noninterest Expense		(42,380	)		(25,072	)		(14,952	)		(1,583	)		(83,987	)
Income Before Income Taxes		21,175			17,328			3,316			12,381			54,200
Provision for Income Taxes		(7,865	)		(6,195	)		(1,227	)		(2,442	)		(17,729	)
Net Income		13,310			11,133			2,089			9,939			36,471
Total Assets as of September 30, 2009	$	3,475,273		$	2,548,944		$	253,580		$	5,930,228		$	12,208,025


Three Months Ended September 30, 2008 ¹
Net Interest Income	$	61,524		$	33,280		$	3,922		$	4,849		$	103,575
Provision for Credit Losses		7,395			11,906			1,089			(32	)		20,358
Net Interest Income After Provision for Credit Losses		54,129			21,374			2,833			4,881			83,217
Noninterest Income		24,362			13,378			17,458			1,788			56,986
Noninterest Expense		(42,545	)		(25,164	)		(16,800	)		(2,281	)		(86,790	)
Income Before Income Taxes		35,946			9,588			3,491			4,388			53,413
Provision for Income Taxes		(13,301	)		(4,993	)		(1,292	)		13,582			(6,004	)
Net Income		22,645			4,595			2,199			17,970			47,409
Total Assets as of September 30, 2008 ¹	$	3,987,651		$	2,703,677		$	285,497		$	3,358,222		$	10,335,047


¹ Certain 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
Nine Months Ended September 30, 2009
Net Interest Income	$	167,166		$	118,780		$	12,593		$	10,261		$	308,800
Provision for Credit Losses		44,921			34,868			1,583			(295	)		81,077
Net Interest Income After Provision for Credit Losses		122,245			83,912			11,010			10,556			227,723
Noninterest Income		78,761			55,032			43,086			10,118			186,997
Noninterest Expense		(130,165	)		(78,453	)		(47,309	)		(5,577	)		(261,504	)
Income Before Income Taxes		70,841			60,491			6,787			15,097			153,216
Provision for Income Taxes		(26,264	)		(21,964	)		(2,511	)		1,040			(49,699	)
Net Income		44,577			38,527			4,276			16,137			103,517
Total Assets as of September 30, 2009	$	3,475,273		$	2,548,944		$	253,580		$	5,930,228		$	12,208,025


Nine Months Ended September 30, 2008 ¹
Net Interest Income	$	186,336		$	112,568		$	11,731		$	2,288		$	312,923
Provision for Credit Losses		21,414			20,289			1,089			(835	)		41,957
Net Interest Income After Provision for Credit Losses		164,922			92,279			10,642			3,123			270,966
Noninterest Income		73,090			52,411			54,738			23,411			203,650
Noninterest Expense		(126,772	)		(75,312	)		(50,026	)		(11,974	)		(264,084	)
Income Before Income Taxes		111,240			69,378			15,354			14,560			210,532
Provision for Income Taxes		(41,196	)		(27,133	)		(5,681	)		16,384			(57,626	)
Net Income		70,044			42,245			9,673			30,944			152,906
Total Assets as of September 30, 2008 ¹	$	3,987,651		$	2,703,677		$	285,497		$	3,358,222		$	10,335,047


¹ Certain 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
	September 30,			June 30,		March 31,		December 31,		September 30,
(dollars in thousands, except per share amounts)	2009			2009		2009		2008 ¹		2008 ¹
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	79,530		$	83,342	$	86,592	$	95,598	$	92,744
Income on Investment Securities
Trading		-			-		594		1,152		1,174
Available-for-Sale		46,419			38,155		32,301		34,352		35,152
Held-to-Maturity		2,179			2,369		2,567		2,735		2,870
Deposits		3			5		10		25		33
Funds Sold		320			526		577		48		141
Other		277			276		276		276		490
Total Interest Income		128,728			124,673		122,917		134,186		132,604
Interest Expense
Deposits		12,235			14,481		17,025		16,960		17,736
Securities Sold Under Agreements to Repurchase		6,394			6,477		6,652		7,984		7,675
Funds Purchased		5			5		5		175		507
Short-Term Borrowings		-			-		-		103		13
Long-Term Debt		1,207			859		2,173		3,110		3,098
Total Interest Expense		19,841			21,822		25,855		28,332		29,029
Net Interest Income		108,887			102,851		97,062		105,854		103,575
Provision for Credit Losses		27,500			28,690		24,887		18,558		20,358
Net Interest Income After Provision for Credit Losses		81,387			74,161		72,175		87,296		83,217
Noninterest Income
Trust and Asset Management		10,915			11,881		11,632		12,275		14,193
Mortgage Banking		4,656			5,443		8,678		508		621
Service Charges on Deposit Accounts		14,014			12,910		13,386		13,306		13,045
Fees, Exchange, and Other Service Charges		14,801			15,410		14,976		14,897		15,604
Investment Securities Gains (Losses), Net		(5	)		12		56		86		159
Insurance		7,304			4,744		5,641		5,953		5,902
Other		5,115			9,432		15,996		7,438		7,462
Total Noninterest Income		56,800			59,832		70,365		54,463		56,986
Noninterest Expense
Salaries and Benefits		46,387			44,180		47,028		43,737		46,764
Net Occupancy		10,350			10,008		10,328		11,548		11,795
Net Equipment		4,502			4,502		4,316		4,573		4,775
Professional Fees		2,642			4,005		2,549		3,040		3,270
FDIC Insurance		3,290			8,987		1,814		693		321
Other		16,816			17,902		21,898		19,099		19,865
Total Noninterest Expense		83,987			89,584		87,933		82,690		86,790
Income Before Provision for Income Taxes		54,200			44,409		54,607		59,069		53,413
Provision for Income Taxes		17,729			13,403		18,567		19,762		6,004
Net Income	$	36,471		$	31,006	$	36,040	$	39,307	$	47,409

Basic Earnings Per Share	$	0.76		$	0.65	$	0.76	$	0.83	$	1.00
Diluted Earnings Per Share	$	0.76		$	0.65	$	0.75	$	0.82	$	0.99

Balance Sheet Totals
Loans and Leases	$	5,931,358		$	6,149,911	$	6,338,726	$	6,530,233	$	6,539,458
Total Assets		12,208,025			12,194,695		11,448,128		10,763,475		10,335,047
Total Deposits		9,250,100			9,019,661		9,212,791		8,292,098		7,658,484
Total Shareholders' Equity		902,799			845,885		833,935		790,704		780,020

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Bank of Hawaii Corporation Third Quarter 2009 Financial Results

Diluted Earnings Per Share $0.76 Net Income for the Quarter $36.5 Million Board of Directors Declares Dividend of $0.45 Per Share

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Diluted Earnings Per Share $0.76

Net Income for the Quarter $36.5 Million

Board of Directors Declares Dividend of $0.45 Per Share