BANK OF HAWAII CORP - FORM 8-K - EX-99.1 - BOH - 2Q2014 ER 07.28.14

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Bank of Hawaii Corporation Second Quarter 2014 Financial Results

•Diluted Earnings Per Share $0.94

•Net Income $41.5 Million

•Board of Directors Increases Repurchase Authorization by $100.0 Million

•Board of Directors Declares Dividend of $0.45 Per Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (July 28, 2014) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.94 for the second quarter of 2014, up from $0.87 in the previous quarter and $0.85 in the same quarter last year. Net income for the second quarter of 2014 was $41.5 million, an increase of $2.9 million or 7.5 percent compared with net income of $38.6 million in the first quarter of 2014, and up $3.7 million or 9.9 percent from net income of $37.8 million in the second quarter of 2013.

Loan and lease balances increased to $6.4 billion at June 30, 2014, up 3.5 percent from March 31, 2014 and 9.7 percent compared with June 30, 2013. Deposit growth remained strong during the quarter, as balances increased to $12.7 billion at June 30, 2014, up 5.2 percent from March 31, 2014 and 10.7 percent from June 30, 2013.

“Bank of Hawaii Corporation continued to perform well during the second quarter of 2014,” said Peter Ho, Chairman, President, and CEO. “Loan balances grew and we continue to increase customer deposits. Our margin was relatively stable at 2.86 percent, asset quality continued its strong trend, and expenses remain well controlled.”

The return on average assets for the second quarter of 2014 was 1.17 percent, up from 1.12 percent in the previous quarter and during the same quarter last year. The return on average equity for the second quarter of 2014 was 15.87 percent, an increase from 15.15 percent for the first quarter of 2014 and 14.64 percent in the second quarter of 2013.

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Bank of Hawaii Corporation Second Quarter 2014 Financial Results Page 2

For the six-month period ended June 30, 2014, net income was $80.1 million, an increase from net income of $73.7 million during the same period last year. Diluted earnings per share were $1.81 for the first half of 2014, up from diluted earnings per share of $1.65 for the first half of 2013. The year-to-date return on average assets for the six-month period ended June 30, 2014 was 1.14 percent, up from 1.10 percent for the same six months in 2013. The year-to-date return on average equity was 15.51 percent, up from 14.37 percent for the six months ended June 30, 2013.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the second quarter of 2014 was $97.3 million, up $1.2 million from net interest income of $96.1 million in the first quarter of 2014 and up $7.5 million from net interest income of $89.8 million in the second quarter of 2013. Net interest income for the first half of 2014 was $193.3 million, an increase of $12.5 million compared with net interest income of $180.8 million for the first half of 2013. Analyses of the changes in net interest income are included in Tables 8a, 8b, and 8c.

The net interest margin was 2.86 percent for the second quarter of 2014, down 1 basis point from the net interest margin of 2.87 percent in the first quarter of 2014 and a 9 basis point increase from the net interest margin of 2.77 percent in the second quarter of 2013. The net interest margin for the first six months of 2014 was 2.87 percent compared with 2.80 percent for the same six-month period last year.

Due to strong credit recoveries during the quarter and continued stability of asset quality, we recorded a negative provision for credit losses of $2.2 million during the second quarter of 2014. The Company did not record a provision for credit losses during the first quarter of 2014 or the first or second quarters of 2013.

Noninterest income was $44.5 million in the second quarter of 2014, a decrease of $0.3 million compared with noninterest income of $44.8 million in the first quarter of 2014, and a decrease of $3.6 million compared with noninterest income of $48.0 million in the second quarter of 2013. Noninterest income in the second quarter of 2014 included a gain of $2.0 million resulting from the sale of 23,500 Visa Class B shares (9,884 Class A equivalents). The Company also contributed 5,700 Visa Class B shares to the Bank of Hawaii Foundation. Noninterest income in the first quarter of 2014 included a gain of $2.0 million resulting from the sale of 22,000 Visa Class B shares (9,253 Class A equivalents). The contributions had no impact on noninterest expense; however, the contributions did favorably impact the effective tax rate for the first and second quarters of 2014. As of June 30, 2014, the Company has 452,914 Visa Class B shares remaining (190,496 Class A equivalents). Mortgage banking revenue was $1.8 million in the second quarter of 2014 compared with $2.0 million in the previous quarter and $5.8 million in the same quarter last year. Noninterest income for the first half of 2014 was $89.2 million, a decrease of $6.6 million compared with noninterest income of $95.8 million for the first half of 2013. The decrease was primarily due to a reduction of $8.4 million in mortgage banking income which was partially offset by gains of $4.0 million on the sale of 45,500 Visa Class B shares.

Noninterest expense was $81.1 million in the second quarter of 2014, down $2.5 million compared with $83.5 million in the first quarter of 2014, and down $0.1 million compared with $81.2 million in the second quarter last year. First quarter expenses include seasonal payroll-related expenses resulting from annual payments from the Company’s incentive compensation plans and higher payroll taxes. An analysis of noninterest expenses related to salaries and benefits is included in Table 9. Noninterest expense for the first half of 2014 was $164.6 million, a decrease of $1.0 million compared with noninterest expense of $165.6 million for the first half of 2013.

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Bank of Hawaii Corporation Second Quarter 2014 Financial Results Page 3

The efficiency ratio for the second quarter of 2014 was 58.38 percent, an improvement from 60.54 percent in the previous quarter and 59.96 percent in the same quarter last year. The efficiency ratio for the first half of 2014 was 59.46 percent down from 60.93 percent in the same period last year.

The effective tax rate for the second quarter of 2014 was 30.86 percent compared with 29.13 percent in the previous quarter and 30.33 percent during the same quarter last year. The lower effective tax rate in the first quarter of 2014 was primarily due to a $1.2 million credit for the release of reserves due to a settlement with the State of Hawaii related to prior year tax issues.

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 13a and 13b.

Asset Quality

The Company’s overall asset quality remained strong during the second quarter of 2014. Total non-performing assets were $34.4 million at June 30, 2014, down from $37.0 million at March 31, 2014, and down from $36.4 million at June 30, 2013. Non-performing assets remain above historical levels due to the lengthy judicial foreclosure process for residential mortgage loans. As a percentage of total loans and leases and foreclosed real estate, non-performing assets were 0.53 percent at June 30, 2014, down from 0.60 percent at March 31, 2014 and down from 0.62 percent at June 30, 2013.

Accruing loans and leases past due 90 days or more were $9.7 million at June 30, 2014, down slightly from March 31, 2014 and down from $10.6 million at June 30, 2013. Restructured loans and leases not included in non-accrual loans or accruing loans past due 90 days or more were $43.6 million at June 30, 2014 and primarily comprised of residential mortgage loans with lowered monthly payments to accommodate our 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 11.

The Company recorded a net recovery of loans and leases previously charged off of $1.9 million during the second quarter of 2014. Loan and lease charge-offs of $4.0 million during the quarter were more than offset by recoveries of $5.9 million. Net charge-offs during the first quarter of 2014 were $1.3 million, or 0.09 percent annualized of total average loans and leases outstanding, and were comprised of $4.0 million in charge-offs partially offset by recoveries of $2.7 million. Net charge-offs in the second quarter of 2013 were $2.3 million or 0.16 percent annualized of total average loans and leases outstanding, and were comprised of $4.7 million in charge-offs partially offset by recoveries of $2.4 million. Net recoveries in the first half of 2014 were $0.6 million compared with net charge-offs of $4.3 million, or 0.15 percent annualized of total average loans and leases outstanding for the first half of 2013.

The allowance for loan and lease losses was reduced to $113.8 million at June 30, 2014. The ratio of the allowance for loan and lease losses to total loans and leases was 1.77 percent at June 30, 2014, a decrease of 7 basis points from the previous quarter and commensurate with improvements in credit quality and the Hawaii economy. The reserve for unfunded commitments at June 30, 2013 was relatively unchanged at $5.9 million. Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.

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Bank of Hawaii Corporation Second Quarter 2014 Financial Results Page 4

Other Financial Highlights

Total assets were $14.84 billion at June 30, 2014, up from total assets of $14.26 billion at March 31, 2014 and $13.73 billion at June 30, 2013. Average total assets were $14.25 billion during the second quarter of 2014, up from $14.03 billion during the previous quarter and $13.57 billion during the same quarter last year.

The investment securities portfolio was $6.91 billion at June 30, 2014, down from $6.97 billion at March 31, 2014, and up from $6.84 billion at June 30, 2013. The portfolio remains largely comprised of securities issued by U. S. government agencies and included $4.70 billion in securities held to maturity and $2.21 billion in securities available for sale at June 30, 2014.

Total loans and leases increased to $6.43 billion at June 30, 2014, up from $6.21 billion at March 31, 2014 and $5.86 billion at June 30, 2013. Average total loans and leases were $6.27 billion during the second quarter of 2014, up from $6.10 billion during the first quarter of 2014 and $5.78 billion during the same quarter last year. Commercial loan growth was strong across all major categories during the second quarter of 2014. The total commercial loan portfolio was $2.69 billion at the end of the quarter, up from commercial loans of $2.57 billion at the end of the previous quarter and up from $2.40 billion at the end of the same quarter last year. Total consumer loans increased to $3.73 billion at the end of the second quarter of 2014, up from $3.64 billion at the end of the first quarter of 2014, and up from consumer loans of $3.46 billion at the end of the second quarter of 2013 in all loan categories. Loan and lease portfolio balances, including the higher risk loans and leases outstanding, are summarized in Table 10.

Total deposits were $12.67 billion at June 30, 2014, up from $12.04 billion at March 31, 2014 and $11.45 billion at June 30, 2013. The increase from the previous quarter was largely due to strong growth in short-term public and commercial deposits. Average total deposits were $12.03 billion in the second quarter of 2014, up from $11.81 billion during the previous quarter and $11.24 billion during the same quarter last year.

During the second quarter of 2014, the Company repurchased 220.3 thousand shares of common stock at a total cost of $12.49 million under its share repurchase program. The average cost was $56.70 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through June 30, 2014, the Company has repurchased 51.4 million shares and returned $1.89 billion to shareholders at an average cost of $36.72 per share.

The Company’s Board of Directors increased the authorization under the share repurchase program by an additional $100.0 million. This authorization, combined with previously announced authorizations of $1.90 billion, brings the total repurchase authority to $2.0 billion. From July 1 through July 25, 2014, the Company repurchased an additional 43.0 thousand shares of common stock at an average cost of $57.45per share. Remaining buyback authority under the share repurchase program was $106.5 million at July 25, 2014.

Total shareholders’ equity was $1.05 billion at June 30, 2014, compared with $1.03 billion at March 31, 2014, and $1.0 billion at June 30, 2013. The ratio of tangible common equity to risk-weighted assets was 15.54 percent at the end of the second quarter of 2014, compared with 15.69 percent at the end of the first quarter of 2014 and 15.87 percent at the end of the same quarter last year. The Tier 1 leverage ratio at June 30, 2014 was 7.20 percent, down from 7.22 percent at March 31, 2014 and 7.29 percent at June 30, 2013.

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Bank of Hawaii Corporation Second Quarter 2014 Financial Results Page 5

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 September 15, 2014 to shareholders of record at the close of business on August 29, 2014.

Hawaii Economy

General economic conditions in Hawaii continued to remain positive during the second quarter of 2014 due to an expanding construction industry, stable tourism, low unemployment, and a strong real estate market. For the first five months of 2014, total visitor spending increased 3.0 percent although total arrivals declined 0.5 percent compared to the same period in 2013. The statewide seasonally-adjusted unemployment rate was at 4.4 percent in June 2014 compared to 6.1 percent nationally. For the first six months of 2014, the volume of single-family home sales on Oahu increased 1.6 percent compared with the same period in 2013. The volume of condominium sales on Oahu increased 1.3 percent compared with the same period in 2013. The median price of single-family home sales and condominiums on Oahu was 7.1 percent higher for the first six months of 2014 compared to the same period in 2013. As of June 30, 2014, months of inventory of single-family homes and condominiums on Oahu remained low at approximately 2.8 months and 3.3 months, respectively. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its second quarter 2014 financial results today at 6:00 p.m. Eastern Time (12:00 p.m. Hawaii Time). The conference call will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation’s web site, www.boh.com. Conference call participants located in the United States or Canada should dial 1 (800) 708-4540. Other international conference call participants should dial 1 (847) 619-6397. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning on Monday, July 28, 2014 by dialing 1 (888) 843-7419 in the United States or Canada and 1 (630) 652-3042 from other international locations. Enter the pass code number 37638750# when prompted. A replay of the conference call will also be available via the Investor Relations link on the Company’s website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2013, 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.

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Bank of Hawaii Corporation and Subsidiaries
Financial Highlights															Table 1a
	Three Months Ended										Six Months Ended
	June 30,				March 31,			June 30,			June 30,
(dollars in thousands, except per share amounts)	2014				2014			2013			2014				2013
For the Period:
Operating Results
Net Interest Income	$	94,412			$	93,233		$	87,340		$	187,645			$	175,900
Provision for Credit Losses	(2,199		)		—			—			(2,199		)		—
Total Noninterest Income	44,481				44,768			48,041			89,249				95,819
Total Noninterest Expense	81,082				83,547			81,181			164,629				165,568
Net Income	41,490				38,592			37,763			80,082				73,743
Basic Earnings Per Share	0.94				0.87			0.85			1.81				1.66
Diluted Earnings Per Share	0.94				0.87			0.85			1.81				1.65
Dividends Declared Per Share	0.45				0.45			0.45			0.90				0.90

Performance Ratios
Return on Average Assets	1.17			%	1.12		%	1.12		%	1.14			%	1.10		%
Return on Average Shareholders' Equity	15.87				15.15			14.64			15.51				14.37
Efficiency Ratio ¹	58.38				60.54			59.96			59.46				60.93
Net Interest Margin ²	2.86				2.87			2.77			2.87				2.80
Dividend Payout Ratio³	47.87				51.72			52.94			49.72				54.22
Average Shareholders' Equity to Average Assets	7.36				7.36			7.62			7.36				7.63

Average Balances
Average Loans and Leases	$	6,274,595			$	6,104,041		$	5,781,898		$	6,189,789			$	5,792,641
Average Assets	14,253,384				14,033,949			13,572,329			14,144,273				13,564,885
Average Deposits	12,030,010				11,814,548			11,244,600			11,922,874				11,265,924
Average Shareholders' Equity	1,048,429				1,033,413			1,034,366			1,040,962				1,034,603

Per Share of Common Stock
Book Value	$	23.72			$	23.14		$	22.09		$	23.72			$	22.09
Tangible Book Value	23.01				22.43			21.39			23.01				21.39
Market Value
Closing	58.69				60.61			50.32			58.69				50.32
High	61.73				61.36			52.17			61.73				52.17
Low	53.45				54.16			46.04			53.45				44.88

					June 30,			March 31,			December 31,				June 30,
					2014			2014			2013				2013
As of Period End:
Balance Sheet Totals
Loans and Leases					$	6,426,353		$	6,209,857		$	6,095,387			$	5,859,152
Total Assets					14,844,505			14,263,118			14,084,280				13,733,418
Total Deposits					12,670,034			12,044,473			11,914,656				11,449,198
Long-Term Debt					173,671			174,695			174,706				174,727
Total Shareholders' Equity					1,050,801			1,028,904			1,011,976				986,368

Asset Quality
Allowance for Loan and Lease Losses					$	113,838		$	114,126		$	115,454			$	124,575
Non-Performing Assets					34,389			37,048			39,650				36,431

Financial Ratios
Allowance to Loans and Leases Outstanding					1.77		%	1.84		%	1.89			%	2.13		%
Tier 1 Capital Ratio⁴					15.66			15.96			16.05				16.40
Total Capital Ratio ⁴					16.91			17.22			17.31				17.66
Tier 1 Leverage Ratio ⁴					7.20			7.22			7.24				7.29
Total Shareholders' Equity to Total Assets					7.08			7.21			7.19				7.18
Tangible Common Equity to Tangible Assets ⁵					6.88			7.01			6.98				6.97
Tangible Common Equity to Risk-Weighted Assets^{4, 5}					15.54			15.69			15.67				15.87

Non-Financial Data
Full-Time Equivalent Employees					2,194			2,181			2,196				2,227
Branches					74			74			74				75
ATMs					457			458			466				486

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.
⁴Financial ratios for prior periods were revised to conform to the current period calculation.
⁵ Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 1b “Reconciliation of Non-GAAP Financial Measures."



Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures											Table 1b
		June 30,			March 31,			December 31,			June 30,
(dollars in thousands)		2014			2014			2013			2013

Total Shareholders' Equity		$	1,050,801		$	1,028,904		$	1,011,976		$	986,368
Less:	Goodwill	31,517			31,517			31,517			31,517
	Intangible Assets	—			—			—			8
Tangible Common Equity		$	1,019,284		$	997,387		$	980,459		$	954,843

Total Assets		$	14,844,505		$	14,263,118		$	14,084,280		$	13,733,418
Less:	Goodwill	31,517			31,517			31,517			31,517
	Intangible Assets	—			—			—			8
Tangible Assets		$	14,812,988		$	14,231,601		$	14,052,763		$	13,701,893

Risk-Weighted Assets, determined in accordance
	with prescribed regulatory requirements ¹	$	6,559,897		$	6,357,428		$	6,258,178		$	6,015,261

Total Shareholders' Equity to Total Assets		7.08		%	7.21		%	7.19		%	7.18		%
Tangible Common Equity to Tangible Assets (Non-GAAP)		6.88		%	7.01		%	6.98		%	6.97		%

Tier 1 Capital Ratio ¹		15.66		%	15.96		%	16.05		%	16.40		%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) ¹		15.54		%	15.69		%	15.67		%	15.87		%


¹ Risk-weighted assets and financial ratios for prior periods were revised to conform to the current period calculation.



Bank of Hawaii Corporation and Subsidiaries
Net Significant Items													Table 2
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands)	2014			2014			2013			2014			2013
Investment Securities Gains, Net	$	2,079		$	2,160		$	—		$	4,239		$	—
Decrease in Allowance for Loan and Lease Losses	288			1,328			2,303			1,616			4,282
Separation Expense	(87		)	(549		)	(864		)	(636		)	(2,339		)
Operating Losses	—			(730		)	—			(730		)	—
Significant Items Before the Provision (Benefit) for Income Taxes	2,280			2,209			1,439			4,489			1,943
Release of Tax Reserve	—			(1,249		)	(1,090		)	(1,249		)	(1,090		)
Income Tax Impact	894			866			504			1,760			680
Net Significant Items	$	1,386		$	2,592		$	2,025		$	3,978		$	2,353



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income											Table 3
	Three Months Ended							Six Months Ended
	June 30,			March 31,		June 30,		June 30,
(dollars in thousands, except per share amounts)	2014			2014		2013		2014			2013
Interest Income
Interest and Fees on Loans and Leases	$	65,818		$	63,526	$	62,729	$	129,344		$	125,549
Income on Investment Securities
Available-for-Sale	10,697			10,760		15,073		21,457			30,924
Held-to-Maturity	26,938			27,889		19,189		54,827			39,043
Deposits	1			3		1		4			4
Funds Sold	168			137		74		305			133
Other	302			302		285		604			569
Total Interest Income	103,924			102,617		97,351		206,541			196,222
Interest Expense
Deposits	2,393			2,358		2,579		4,751			5,225
Securities Sold Under Agreements to Repurchase	6,465			6,397		6,751		12,862			13,756
Funds Purchased	4			3		10		7			32
Long-Term Debt	650			626		671		1,276			1,309
Total Interest Expense	9,512			9,384		10,011		18,896			20,322
Net Interest Income	94,412			93,233		87,340		187,645			175,900
Provision for Credit Losses	(2,199		)	—		—		(2,199		)	—
Net Interest Income After Provision for Credit Losses	96,611			93,233		87,340		189,844			175,900
Noninterest Income
Trust and Asset Management	12,005			11,852		12,089		23,857			23,975
Mortgage Banking	1,804			2,005		5,820		3,809			12,231
Service Charges on Deposit Accounts	8,638			8,878		9,112		17,516			18,413
Fees, Exchange, and Other Service Charges	13,370			12,939		13,133		26,309			25,067
Investment Securities Gains, Net	2,079			2,160		—		4,239			—
Insurance	1,930			2,123		2,393		4,053			4,718
Bank-Owned Life Insurance	1,519			1,602		1,335		3,121			2,632
Other	3,136			3,209		4,159		6,345			8,783
Total Noninterest Income	44,481			44,768		48,041		89,249			95,819
Noninterest Expense
Salaries and Benefits	45,081			46,897		45,341		91,978			94,016
Net Occupancy	9,254			9,417		9,661		18,671			19,296
Net Equipment	4,669			4,603		4,380		9,272			8,957
Data Processing	3,842			3,649		3,050		7,491			6,316
Professional Fees	2,613			2,260		2,391		4,873			4,617
FDIC Insurance	2,055			2,076		1,949		4,131			3,898
Other	13,568			14,645		14,409		28,213			28,468
Total Noninterest Expense	81,082			83,547		81,181		164,629			165,568
Income Before Provision for Income Taxes	60,010			54,454		54,200		114,464			106,151
Provision for Income Taxes	18,520			15,862		16,437		34,382			32,408
Net Income	$	41,490		$	38,592	$	37,763	$	80,082		$	73,743
Basic Earnings Per Share	$	0.94		$	0.87	$	0.85	$	1.81		$	1.66
Diluted Earnings Per Share	$	0.94		$	0.87	$	0.85	$	1.81		$	1.65
Dividends Declared Per Share	$	0.45		$	0.45	$	0.45	$	0.90		$	0.90
Basic Weighted Average Shares	44,053,899			44,193,267		44,493,069		44,123,030			44,518,629
Diluted Weighted Average Shares	44,246,431			44,420,349		44,608,497		44,332,838			44,644,348



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)											Table 4
		Three Months Ended							Six Months Ended
		June 30,		March 31,		June 30,			June 30,
(dollars in thousands)		2014		2014		2013			2014		2013
Net Income		$	41,490	$	38,592	$	37,763		$	80,082	$	73,743
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities	8,617		6,271		(46,572		)	14,888		(56,213		)
	Defined Benefit Plans	156		156		201			312		279
Total Other Comprehensive Income (Loss)		8,773		6,427		(46,371		)	15,200		(55,934		)

Comprehensive Income (Loss)		$	50,263	$	45,019	$	(8,608	)	$	95,282	$	17,809



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands)	2014			2014			2013			2013
Assets
Interest-Bearing Deposits	$	4,552		$	4,085		$	3,617		$	4,635
Funds Sold	796,275			382,154			271,414			329,922
Investment Securities
Available-for-Sale	2,209,763			2,188,064			2,243,697			2,815,408
Held-to-Maturity (Fair Value of $4,743,012; $4,774,032; $4,697,587; and $4,036,197)	4,704,551			4,777,494			4,744,519			4,027,829
Loans Held for Sale	3,678			2,437			6,435			25,880
Loans and Leases	6,426,353			6,209,857			6,095,387			5,859,152
Allowance for Loan and Lease Losses	(113,838		)	(114,126		)	(115,454		)	(124,575		)
Net Loans and Leases	6,312,515			6,095,731			5,979,933			5,734,577
Total Earning Assets	14,031,334			13,449,965			13,249,615			12,938,251
Cash and Noninterest-Bearing Deposits	141,950			159,079			188,715			136,386
Premises and Equipment	108,116			107,323			108,636			105,752
Accrued Interest Receivable	44,311			46,431			43,930			43,375
Foreclosed Real Estate	3,944			3,450			3,205			3,256
Mortgage Servicing Rights	26,397			27,378			28,123			27,631
Goodwill	31,517			31,517			31,517			31,517
Other Assets	456,936			437,975			430,539			447,250
Total Assets	$	14,844,505		$	14,263,118		$	14,084,280		$	13,733,418

Liabilities
Deposits
Noninterest-Bearing Demand	$	4,070,334		$	3,679,410		$	3,681,128		$	3,396,835
Interest-Bearing Demand	2,566,240			2,378,414			2,355,608			2,269,196
Savings	4,525,593			4,515,026			4,560,150			4,433,042
Time	1,507,867			1,471,623			1,317,770			1,350,125
Total Deposits	12,670,034			12,044,473			11,914,656			11,449,198
Funds Purchased	8,467			9,982			9,982			9,983
Short-Term Borrowings	—			375			—			—
Securities Sold Under Agreements to Repurchase	745,626			797,213			770,049			866,237
Long-Term Debt	173,671			174,695			174,706			174,727
Retirement Benefits Payable	35,017			35,111			34,965			47,318
Accrued Interest Payable	5,099			5,743			4,871			4,399
Taxes Payable and Deferred Taxes	42,131			45,811			34,907			48,947
Other Liabilities	113,659			120,811			128,168			146,241
Total Liabilities	13,793,704			13,234,214			13,072,304			12,747,050
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: June 30, 2014 - 57,631,552 / 44,297,228;
March 31, 2014 - 57,620,212 / 44,467,593; December 31, 2013 - 57,480,846 / 44,490,385;
and June 30, 2013 - 57,488,745 / 44,644,596)	573			573			572			572
Capital Surplus	527,284			524,912			522,505			518,804
Accumulated Other Comprehensive Loss	(16,623		)	(25,396		)	(31,823		)	(26,726		)
Retained Earnings	1,191,512			1,170,068			1,151,754			1,115,594
Treasury Stock, at Cost (Shares: June 30, 2014 - 13,334,324; March 31, 2014 - 13,152,619;
December 31, 2013 - 12,990,461; and June 30, 2013 - 12,844,149)	(651,945		)	(641,253		)	(631,032		)	(621,876		)
Total Shareholders' Equity	1,050,801			1,028,904			1,011,976			986,368
Total Liabilities and Shareholders' Equity	$	14,844,505		$	14,263,118		$	14,084,280		$	13,733,418



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																	Table 6
								Accum.
								Other
								Compre-
								hensive
	Common Shares			Common		Capital		Income			Retained			Treasury
(dollars in thousands)		Outstanding		Stock		Surplus		(Loss)			Earnings			Stock			Total
Balance as of December 31, 2013		44,490,385		$	572	$	522,505	$	(31,823	)	$	1,151,754		$	(631,032	)	$	1,011,976
Net Income		—		—		—		—			80,082			—			80,082
Other Comprehensive Income		—		—		—		15,200			—			—			15,200
Share-Based Compensation		—		—		3,820		—			—			—			3,820
Common Stock Issued under Purchase and Equity
	Compensation Plans and Related Tax Benefits	274,621		1		959		—			(279		)	6,074			6,755
Common Stock Repurchased		(467,778	)	—		—		—			—			(26,987		)	(26,987		)
Cash Dividends Paid ($0.90 per share)		—		—		—		—			(40,045		)	—			(40,045		)
Balance as of June 30, 2014		44,297,228		$	573	$	527,284	$	(16,623	)	$	1,191,512		$	(651,945	)	$	1,050,801

Balance as of December 31, 2012		44,754,835		$	571	$	515,619	$	29,208		$	1,084,477		$	(608,210	)	$	1,021,665
Net Income		—		—		—		—			73,743			—			73,743
Other Comprehensive Loss		—		—		—		(55,934		)							(55,934		)
Share-Based Compensation		—		—		2,732		—			—			—			2,732
Common Stock Issued under Purchase and Equity
	Compensation Plans and Related Tax Benefits	379,870		1		453		—			(2,235		)	10,294			8,513
Common Stock Repurchased		(490,109	)	—		—		—			—			(23,960		)	(23,960		)
Cash Dividends Paid ($0.90 per share)		—		—		—		—			(40,391		)	—			(40,391		)
Balance as of June 30, 2013		44,644,596		$	572	$	518,804	$	(26,726	)	$	1,115,594		$	(621,876	)	$	986,368



Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																Table 7a
		Three Months Ended						Three Months Ended						Three Months Ended
		June 30, 2014						March 31, 2014						June 30, 2013
		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		$	4.0	$	—	0.12	%	$	5.7	$	—	0.23	%	$	4.5	$	—	0.06	%
Funds Sold		308.3		0.2		0.22		270.5		0.1		0.20		168.3		0.1		0.18
Investment Securities
	Available-for-Sale	2,226.7		12.7		2.28		2,226.4		12.7		2.29		3,212.2		17.4		2.17
	Held-to-Maturity	4,756.8		27.8		2.34		4,754.2		28.8		2.42		3,714.3		19.2		2.07
Loans Held for Sale		3.6		—		4.33		4.2		0.1		4.68		22.9		0.2		3.87
Loans and Leases ¹
	Commercial and Industrial	950.2		8.1		3.42		923.8		7.8		3.41		855.5		7.8		3.65
	Commercial Mortgage	1,302.2		12.7		3.91		1,250.0		12.7		4.12		1,114.8		11.3		4.08
	Construction	103.2		1.2		4.48		97.3		1.1		4.43		107.5		1.2		4.61
	Commercial Lease Financing	241.2		1.7		2.80		245.8		1.4		2.33		265.2		1.6		2.36
	Residential Mortgage	2,323.5		25.4		4.38		2,286.9		24.4		4.27		2,252.1		25.5		4.53
	Home Equity	805.9		7.9		3.93		781.8		7.6		3.97		752.9		7.8		4.15
	Automobile	280.6		3.7		5.33		263.3		3.5		5.39		225.0		3.1		5.51
	Other ²	267.8		5.1		7.65		255.1		5.0		7.90		208.9		4.3		8.22
Total Loans and Leases		6,274.6		65.8		4.20		6,104.0		63.5		4.19		5,781.9		62.6		4.34
Other		74.1		0.3		1.63		76.8		0.3		1.57		78.6		0.3		1.45
Total Earning Assets ³		13,648.1		106.8		3.13		13,441.8		105.5		3.16		12,982.7		99.8		3.08
Cash and Noninterest-Bearing Deposits		138.3						142.5						136.8
Other Assets		467.0						449.6						452.8
Total Assets		$	14,253.4					$	14,033.9					$	13,572.3

Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,359.2	0.2		0.03		$	2,325.8	0.2		0.03		$	2,106.0	0.2		0.03
	Savings	4,540.3		1.0		0.09		4,515.6		1.0		0.09		4,451.1		1.0		0.09
	Time	1,506.5		1.2		0.33		1,373.1		1.2		0.37		1,381.4		1.4		0.42
Total Interest-Bearing Deposits		8,406.0		2.4		0.11		8,214.5		2.4		0.12		7,938.5		2.6		0.13
Short-Term Borrowings		9.3		—		0.14		10.0		—		0.14		29.4		—		0.12
Securities Sold Under Agreements to Repurchase		789.9		6.5		3.24		794.4		6.4		3.22		800.1		6.7		3.34
Long-Term Debt		175.3		0.6		1.49		174.7		0.6		1.44		177.3		0.7		1.52
Total Interest-Bearing Liabilities		9,380.5		9.5		0.40		9,193.6		9.4		0.41		8,945.3		10.0		0.44
Net Interest Income				$	97.3					$	96.1					$	89.8
	Interest Rate Spread					2.73	%					2.75	%					2.64	%
	Net Interest Margin					2.86	%					2.87	%					2.77	%
Noninterest-Bearing Demand Deposits		3,624.0						3,600.0						3,306.1
Other Liabilities		200.5						206.9						286.5
Shareholders' Equity		1,048.4						1,033.4						1,034.4
Total Liabilities and Shareholders' Equity		$	14,253.4					$	14,033.9					$	13,572.3

¹ Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
² Comprised of other consumer revolving credit, installment, and consumer lease financing.
³ Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $2,874,000, $2,824,000, and $2,490,000 for the three months ended
	June 30, 2014, March 31, 2014, and June 30, 2013, respectively.



Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis												Table 7b
		Six Months Ended						Six Months Ended
		June 30, 2014						June 30, 2013
		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits		$	4.8	$	—	0.18	%	$	4.2	$	—	0.18	%
Funds Sold		289.5		0.3		0.21		162.4		0.1		0.16
Investment Securities
	Available-for-Sale	2,226.5		25.4		2.28		3,266.9		35.6		2.18
	Held-to-Maturity	4,755.5		56.5		2.38		3,646.6		39.1		2.14
Loans Held for Sale		3.9		0.1		4.52		20.6		0.4		3.90
Loans and Leases ¹
	Commercial and Industrial	937.1		15.9		3.42		839.3		15.4		3.70
	Commercial Mortgage	1,276.2		25.4		4.01		1,104.1		22.4		4.09
	Construction	100.3		2.2		4.45		111.5		2.7		4.83
	Commercial Lease Financing	243.5		3.1		2.56		268.9		3.2		2.38
	Residential Mortgage	2,305.3		49.8		4.32		2,281.7		51.5		4.51
	Home Equity	793.9		15.6		3.95		760.4		15.7		4.15
	Automobile	272.0		7.2		5.36		219.5		6.0		5.56
	Other ²	261.5		10.1		7.77		207.2		8.5		8.28
Total Loans and Leases		6,189.8		129.3		4.20		5,792.6		125.4		4.35
Other		75.5		0.6		1.60		78.8		0.5		1.44
Total Earning Assets ³		13,545.5		212.2		3.14		12,972.1		201.1		3.11
Cash and Noninterest-Bearing Deposits		140.4						139.4
Other Assets		458.4						453.4
Total Assets		$	14,144.3					$	13,564.9

Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,342.6	0.4		0.03		$	2,083.4	0.3		0.03
	Savings	4,528.0		1.9		0.09		4,429.9		1.9		0.09
	Time	1,440.2		2.5		0.35		1,446.8		3.0		0.42
Total Interest-Bearing Deposits		8,310.8		4.8		0.12		7,960.1		5.2		0.13
Short-Term Borrowings		9.6		—		0.14		43.7		—		0.14
Securities Sold Under Agreements to Repurchase		792.2		12.8		3.23		778.2		13.8		3.52
Long-Term Debt		175.0		1.3		1.46		167.3		1.3		1.57
Total Interest-Bearing Liabilities		9,287.6		18.9		0.41		8,949.3		20.3		0.45
Net Interest Income				$	193.3					$	180.8
	Interest Rate Spread					2.73	%					2.66	%
	Net Interest Margin					2.87	%					2.80	%
Noninterest-Bearing Demand Deposits		3,612.1						3,305.8
Other Liabilities		203.6						275.2
Shareholders' Equity		1,041.0						1,034.6
Total Liabilities and Shareholders' Equity		$	14,144.3					$	13,564.9

¹ Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
² Comprised of other consumer revolving credit, installment, and consumer lease financing.
³ Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $5,698,000 and $4,901,000 for the
	six months ended June 30, 2014 and 2013, respectively.



Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended June 30, 2014
	Compared to March 31, 2014
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	0.1		$	—		$	0.1
Investment Securities
Held-to-Maturity	—			(1.0		)	(1.0		)
Loans Held for Sale	(0.1		)	—			(0.1		)
Loans and Leases
Commercial and Industrial	0.3			—			0.3
Commercial Mortgage	0.6			(0.6		)	—
Construction	0.1			—			0.1
Commercial Lease Financing	—			0.3			0.3
Residential Mortgage	0.4			0.6			1.0
Home Equity	0.4			(0.1		)	0.3
Automobile	0.2			—			0.2
Other ²	0.2			(0.1		)	0.1
Total Loans and Leases	2.2			0.1			2.3
Total Change in Interest Income	2.2			(0.9		)	1.3

Change in Interest Expense:
Interest-Bearing Deposits
Time	0.1			(0.1		)	—
Total Interest-Bearing Deposits	0.1			(0.1		)	—
Securities Sold Under Agreements to Repurchase	—			0.1			0.1
Total Change in Interest Expense	0.1			—			0.1

Change in Net Interest Income	$	2.1		$	(0.9	)	$	1.2

¹ The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
² Comprised of other consumer revolving credit, installment, and consumer lease financing.



Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8b
	Three Months Ended June 30, 2014
	Compared to June 30, 2013
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	0.1		$	—		$	0.1
Investment Securities
Available-for-Sale	(5.6		)	0.9			(4.7		)
Held-to-Maturity	5.9			2.7			8.6
Loans Held for Sale	(0.2		)	—			(0.2		)
Loans and Leases
Commercial and Industrial	0.8			(0.5		)	0.3
Commercial Mortgage	1.9			(0.5		)	1.4
Commercial Lease Financing	(0.2		)	0.3			0.1
Residential Mortgage	0.8			(0.9		)	(0.1		)
Home Equity	0.5			(0.4		)	0.1
Automobile	0.7			(0.1		)	0.6
Other ²	1.1			(0.3		)	0.8
Total Loans and Leases	5.6			(2.4		)	3.2
Total Change in Interest Income	5.8			1.2			7.0

Change in Interest Expense:
Interest-Bearing Deposits
Time	0.1			(0.3		)	(0.2		)
Total Interest-Bearing Deposits	0.1			(0.3		)	(0.2		)
Securities Sold Under Agreements to Repurchase	—			(0.2		)	(0.2		)
Long-Term Debt	(0.1		)	—			(0.1		)
Total Change in Interest Expense	—			(0.5		)	(0.5		)

Change in Net Interest Income	$	5.8		$	1.7		$	7.5

¹ The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
² Comprised of other consumer revolving credit, installment, and consumer lease financing.



Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8c
	Six Months Ended June 30, 2014
	Compared to June 30, 2013
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	0.1		$	0.1		$	0.2
Investment Securities
Available-for-Sale	(11.8		)	1.6			(10.2		)
Held-to-Maturity	12.8			4.6			17.4
Loans Held for Sale	(0.4		)	0.1			(0.3		)
Loans and Leases
Commercial and Industrial	1.7			(1.2		)	0.5
Commercial Mortgage	3.4			(0.4		)	3.0
Construction	(0.2		)	(0.3		)	(0.5		)
Commercial Lease Financing	(0.3		)	0.2			(0.1		)
Residential Mortgage	0.5			(2.2		)	(1.7		)
Home Equity	0.7			(0.8		)	(0.1		)
Automobile	1.4			(0.2		)	1.2
Other ²	2.1			(0.5		)	1.6
Total Loans and Leases	9.3			(5.4		)	3.9
Other	—			0.1			0.1
Total Change in Interest Income	10.0			1.1			11.1

Change in Interest Expense:
Interest-Bearing Deposits
Demand	0.1			—			0.1
Savings	0.1			(0.1		)	—
Time	(0.1		)	(0.4		)	(0.5		)
Total Interest-Bearing Deposits	0.1			(0.5		)	(0.4		)
Securities Sold Under Agreements to Repurchase	0.1			(1.1		)	(1.0		)
Long-Term Debt	0.1			(0.1		)	—
Total Change in Interest Expense	0.3			(1.7		)	(1.4		)

Change in Net Interest Income	$	9.7		$	2.8		$	12.5

¹ The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
² Comprised of other consumer revolving credit, installment, and consumer lease financing.



Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits									Table 9
	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,
(dollars in thousands)	2014		2014		2013		2014		2013
Salaries	$	28,544	$	27,914	$	28,690	$	56,458	$	57,768
Incentive Compensation	4,359		4,231		3,861		8,590		7,645
Share-Based Compensation	2,271		1,969		1,305		4,240		2,441
Commission Expense	1,106		1,059		1,983		2,165		3,764
Retirement and Other Benefits	3,811		4,986		3,594		8,797		7,962
Payroll Taxes	2,179		3,568		2,576		5,747		6,816
Medical, Dental, and Life Insurance	2,724		2,621		2,468		5,345		5,281
Separation Expense	87		549		864		636		2,339
Total Salaries and Benefits	$	45,081	$	46,897	$	45,341	$	91,978	$	94,016



Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances										Table 10
		June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)		2014		2014		2013		2013		2013
Commercial
	Commercial and Industrial	$	988,940	$	955,599	$	911,367	$	895,040	$	875,702
	Commercial Mortgage	1,345,549		1,284,181		1,247,510		1,203,670		1,160,977
	Construction	121,434		91,452		107,349		124,230		107,016
	Lease Financing	237,585		240,931		262,207		255,550		257,067
Total Commercial		2,693,508		2,572,163		2,528,433		2,478,490		2,400,762
Consumer
	Residential Mortgage	2,355,085		2,305,153		2,282,894		2,282,305		2,252,117
	Home Equity	811,180		797,341		773,385		765,841		751,790
	Automobile	287,794		273,553		255,986		246,704		233,475
	Other ¹	278,786		261,647		254,689		233,302		221,008
Total Consumer		3,732,845		3,637,694		3,566,954		3,528,152		3,458,390
Total Loans and Leases		$	6,426,353	$	6,209,857	$	6,095,387	$	6,006,642	$	5,859,152


Higher Risk Loans and Leases Outstanding
		June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)		2014		2014		2013		2013		2013
Residential Land Loans ²		$	10,016	$	11,086	$	11,922	$	13,635	$	13,708
Home Equity Loans ³		11,307		11,846		12,594		12,588		13,578
Air Transportation Leases ⁴		24,917		24,969		26,152		26,492		26,436
Total Higher Risk Loans and Leases		$	46,240	$	47,901	$	50,668	$	52,715	$	53,722

¹ Comprised of other revolving credit, installment, and lease financing.
² 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.
³ 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%.
⁴ We consider all of our air transportation leases to be of higher risk due to the weak financial profile of the industry.

Deposits
		June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)		2014		2014		2013		2013		2013
Consumer		$	5,938,123	$	5,960,485	$	5,829,352	$	5,707,125	$	5,626,515
Commercial		5,207,026		4,742,308		4,814,076		4,680,370		4,537,120
Public and Other		1,524,885		1,341,680		1,271,228		1,220,639		1,285,563
Total Deposits		$	12,670,034	$	12,044,473	$	11,914,656	$	11,608,134	$	11,449,198



Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More															Table 11
			June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)			2014			2014			2013			2013			2013
Non-Performing Assets
Non-Accrual Loans and Leases
	Commercial
		Commercial and Industrial	$	10,437		$	11,239		$	11,929		$	5,295		$	4,909
		Commercial Mortgage	1,403			1,421			2,512			2,355			2,772
		Lease Financing	—			—			—			—			16
	Total Commercial		11,840			12,660			14,441			7,650			7,697
	Consumer
		Residential Mortgage	15,818			19,003			20,264			20,637			22,876
		Home Equity	2,787			1,935			1,740			2,509			2,602
	Total Consumer		18,605			20,938			22,004			23,146			25,478
Total Non-Accrual Loans and Leases			30,445			33,598			36,445			30,796			33,175
Foreclosed Real Estate			3,944			3,450			3,205			3,036			3,256
Total Non-Performing Assets			$	34,389		$	37,048		$	39,650		$	33,832		$	36,431

Accruing Loans and Leases Past Due 90 Days or More
Commercial
	Commercial and Industrial		$	—		$	150		$	1,173		$	8		$	—
Total Commercial			—			150			1,173			8			—
Consumer
	Residential Mortgage		6,082			5,729			4,564			7,460			6,876
	Home Equity		2,505			2,845			3,009			2,896			2,768
	Automobile		236			346			322			193			95
	Other ¹		844			644			790			841			855
Total Consumer			9,667			9,564			8,685			11,390			10,594
Total Accruing Loans and Leases Past Due 90 Days or More			$	9,667		$	9,714		$	9,858		$	11,398		$	10,594
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More			$	43,625		$	44,473		$	51,123		$	39,845		$	39,154
Total Loans and Leases			$	6,426,353		$	6,209,857		$	6,095,387		$	6,006,642		$	5,859,152

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.47		%	0.54		%	0.60		%	0.51		%	0.57		%

Ratio of Non-Performing Assets to Total Loans and Leases
	and Foreclosed Real Estate		0.53		%	0.60		%	0.65		%	0.56		%	0.62		%

Ratio of Commercial Non-Performing Assets to Total Commercial Loans
	and Leases and Commercial Foreclosed Real Estate		0.48		%	0.53		%	0.61		%	0.35		%	0.37		%

Ratio of Consumer Non-Performing Assets to Total Consumer Loans
	and Leases and Consumer Foreclosed Real Estate		0.57		%	0.64		%	0.68		%	0.71		%	0.80		%

Ratio of Non-Performing Assets and Accruing Loans and Leases
	Past Due 90 Days or More to Total Loans and Leases
	and Foreclosed Real Estate		0.69		%	0.75		%	0.81		%	0.75		%	0.80		%

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter			$	37,048		$	39,650		$	33,832		$	36,431		$	38,374
Additions			2,798			2,491			13,040			3,395			2,647
Reductions
	Payments		(2,753		)	(1,855		)	(932		)	(2,954		)	(1,306		)
	Return to Accrual Status		(904		)	(1,864		)	(2,308		)	(1,166		)	(1,978		)
	Sales of Foreclosed Real Estate		(1,782		)	(737		)	(1,431		)	(1,498		)	(1,257		)
	Charge-offs/Write-downs		(18		)	(637		)	(2,551		)	(376		)	(49		)
Total Reductions			(5,457		)	(5,093		)	(7,222		)	(5,994		)	(4,590		)
Balance at End of Quarter			$	34,389		$	37,048		$	39,650		$	33,832		$	36,431


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



Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses															Table 12
			Three Months Ended									Six Months Ended
			June 30,			March 31,			June 30,			June 30,
(dollars in thousands)			2014			2014			2013			2014			2013
Balance at Beginning of Period			$	120,136		$	121,521		$	132,297		$	121,521		$	134,276
Loans and Leases Charged-Off
	Commercial
		Commercial and Industrial	(749		)	(819		)	(266		)	(1,568		)	(648		)
		Lease Financing	(66		)	—			—			(66		)	—
	Consumer
		Residential Mortgage	(323		)	(329		)	(188		)	(652		)	(1,423		)
		Home Equity	(553		)	(351		)	(2,016		)	(904		)	(3,393		)
		Automobile	(711		)	(917		)	(429		)	(1,628		)	(1,004		)
		Other ¹	(1,595		)	(1,622		)	(1,805		)	(3,217		)	(3,535		)
Total Loans and Leases Charged-Off			(3,997		)	(4,038		)	(4,704		)	(8,035		)	(10,003		)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
		Commercial and Industrial	2,132			920			437			3,052			875
		Commercial Mortgage	15			14			14			29			24
		Construction	8			5			8			13			346
		Lease Financing	1			2			11			3			22
	Consumer
		Residential Mortgage	2,335			272			634			2,607			1,422
		Home Equity	351			551			335			902			1,083
		Automobile	343			445			456			788			917
		Other ¹	723			501			506			1,224			1,032
Total Recoveries on Loans and Leases Previously Charged-Off			5,908			2,710			2,401			8,618			5,721
Net Loans and Leases Recovered (Charged-Off)			1,911			(1,328		)	(2,303		)	583			(4,282		)
Provision for Credit Losses			(2,199		)	—			—			(2,199		)	—
Provision for Unfunded Commitments			(123		)	(57		)	500			(180		)	500
Balance at End of Period ²			$	119,725		$	120,136		$	130,494		$	119,725		$	130,494

Components
Allowance for Loan and Lease Losses			$	113,838		$	114,126		$	124,575		$	113,838		$	124,575
Reserve for Unfunded Commitments			5,887			6,010			5,919			5,887			5,919
Total Reserve for Credit Losses			$	119,725		$	120,136		$	130,494		$	119,725		$	130,494

Average Loans and Leases Outstanding			$	6,274,595		$	6,104,041		$	5,781,898		$	6,189,789		$	5,792,641

Ratio of Net Loans and Leases Charged-Off (Recovered) to
	Average Loans and Leases Outstanding (annualized)		-0.12		%	0.09		%	0.16		%	-0.02		%	0.15		%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding			1.77		%	1.84		%	2.13		%	1.77		%	2.13		%

¹ Comprised of other revolving credit, installment, and lease financing.
² Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the
	Consolidated Statements of Condition.



Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information													Table 13a
	Retail			Commercial			Investment			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Services			and Other			Total
Three Months Ended June 30, 2014
Net Interest Income	$	45,345		$	28,012		$	2,638		$	18,417		$	94,412
Provision for Credit Losses	(414		)	(1,269		)	(226		)	(290		)	(2,199		)
Net Interest Income After Provision for Credit Losses	45,759			29,281			2,864			18,707			96,611
Noninterest Income	20,133			5,443			14,404			4,501			44,481
Noninterest Expense	(49,028		)	(16,258		)	(13,165		)	(2,631		)	(81,082		)
Income Before Provision for Income Taxes	16,864			18,466			4,103			20,577			60,010
Provision for Income Taxes	(6,193		)	(6,389		)	(1,518		)	(4,420		)	(18,520		)
Net Income	$	10,671		$	12,077		$	2,585		$	16,157		$	41,490
Total Assets as of June 30, 2014	$	3,798,785		$	2,595,573		$	194,220		$	8,255,927		$	14,844,505


Three Months Ended June 30, 2013 ¹
Net Interest Income	$	40,334		$	23,874		$	2,594		$	20,538		$	87,340
Provision for Credit Losses	2,534			(205		)	(12		)	(2,317		)	—
Net Interest Income After Provision for Credit Losses	37,800			24,079			2,606			22,855			87,340
Noninterest Income	22,977			7,011			15,288			2,765			48,041
Noninterest Expense	(49,831		)	(15,698		)	(13,181		)	(2,471		)	(81,181		)
Income Before Provision for Income Taxes	10,946			15,392			4,713			23,149			54,200
Provision for Income Taxes	(4,050		)	(5,268		)	(1,744		)	(5,375		)	(16,437		)
Net Income	$	6,896		$	10,124		$	2,969		$	17,774		$	37,763
Total Assets as of June 30, 2013 ¹	$	3,567,718		$	2,275,763		$	188,871		$	7,701,066		$	13,733,418


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 13b
	Retail			Commercial			Investment			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Services			and Other			Total
Six Months Ended June 30, 2014
Net Interest Income	$	87,913		$	54,783		$	5,219		$	39,730		$	187,645
Provision for Credit Losses	1,042			(1,329		)	(294		)	(1,618		)	(2,199		)
Net Interest Income After Provision for Credit Losses	86,871			56,112			5,513			41,348			189,844
Noninterest Income	39,625			11,531			28,747			9,346			89,249
Noninterest Expense	(98,774		)	(33,025		)	(27,400		)	(5,430		)	(164,629		)
Income Before Provision for Income Taxes	27,722			34,618			6,860			45,264			114,464
Provision for Income Taxes	(10,210		)	(11,903		)	(2,538		)	(9,731		)	(34,382		)
Net Income	$	17,512		$	22,715		$	4,322		$	35,533		$	80,082
Total Assets as of June 30, 2014	$	3,798,785		$	2,595,573		$	194,220		$	8,255,927		$	14,844,505


Six Months Ended June 30, 2013 ¹
Net Interest Income	$	81,039		$	48,856		$	5,365		$	40,640		$	175,900
Provision for Credit Losses	5,146			(810		)	(34		)	(4,302		)	—
Net Interest Income After Provision for Credit Losses	75,893			49,666			5,399			44,942			175,900
Noninterest Income	45,901			13,971			30,098			5,849			95,819
Noninterest Expense	(100,689		)	(32,210		)	(27,364		)	(5,305		)	(165,568		)
Income Before Provision for Income Taxes	21,105			31,427			8,133			45,486			106,151
Provision for Income Taxes	(7,809		)	(10,746		)	(3,009		)	(10,844		)	(32,408		)
Net Income	$	13,296		$	20,681		$	5,124		$	34,642		$	73,743
Total Assets as of June 30, 2013¹	$	3,567,718		$	2,275,763		$	188,871		$	7,701,066		$	13,733,418


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



Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data														Table 14
	Three Months Ended
	June 30,				March 31,			December 31,			September 30,			June 30,
(dollars in thousands, except per share amounts)	2014				2014			2013			2013			2013
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	65,818			$	63,526		$	63,809		$	63,918		$	62,729
Income on Investment Securities
Available-for-Sale	10,697				10,760			10,608			12,038			15,073
Held-to-Maturity	26,938				27,889			26,882			24,137			19,189
Deposits	1				3			3			3			1
Funds Sold	168				137			105			177			74
Other	302				302			302			301			285
Total Interest Income	103,924				102,617			101,709			100,574			97,351
Interest Expense
Deposits	2,393				2,358			2,418			2,500			2,579
Securities Sold Under Agreements to Repurchase	6,465				6,397			6,530			6,551			6,751
Funds Purchased	4				3			8			4			10
Short-Term Borrowings	—				—			2			—			—
Long-Term Debt	650				626			631			632			671
Total Interest Expense	9,512				9,384			9,589			9,687			10,011
Net Interest Income	94,412				93,233			92,120			90,887			87,340
Provision for Credit Losses	(2,199		)		—			—			—			—
Net Interest Income After Provision for Credit Losses	96,611				93,233			92,120			90,887			87,340
Noninterest Income
Trust and Asset Management	12,005				11,852			12,240			11,717			12,089
Mortgage Banking	1,804				2,005			2,823			4,132			5,820
Service Charges on Deposit Accounts	8,638				8,878			9,326			9,385			9,112
Fees, Exchange, and Other Service Charges	13,370				12,939			12,670			12,732			13,133
Investment Securities Gains, Net	2,079				2,160			—			—			—
Insurance	1,930				2,123			2,295			2,177			2,393
Bank-Owned Life Insurance	1,519				1,602			1,895			1,365			1,335
Other	3,136				3,209			4,029			3,618			4,159
Total Noninterest Income	44,481				44,768			45,278			45,126			48,041
Noninterest Expense
Salaries and Benefits	45,081				46,897			43,643			46,552			45,341
Net Occupancy	9,254				9,417			9,602			9,847			9,661
Net Equipment	4,669				4,603			4,837			4,572			4,380
Data Processing	3,842				3,649			3,827			3,697			3,050
Professional Fees	2,613				2,260			2,669			2,119			2,391
FDIC Insurance	2,055				2,076			1,954			1,913			1,949
Other	13,568				14,645			15,892			14,277			14,409
Total Noninterest Expense	81,082				83,547			82,424			82,977			81,181
Income Before Provision for Income Taxes	60,010				54,454			54,974			53,036			54,200
Provision for Income Taxes	18,520				15,862			15,919			15,332			16,437
Net Income	$	41,490			$	38,592		$	39,055		$	37,704		$	37,763

Basic Earnings Per Share	$	0.94			$	0.87		$	0.88		$	0.85		$	0.85
Diluted Earnings Per Share	$	0.94			$	0.87		$	0.88		$	0.85		$	0.85

Balance Sheet Totals
Loans and Leases	$	6,426,353			$	6,209,857		$	6,095,387		$	6,006,642		$	5,859,152
Total Assets	14,844,505				14,263,118			14,084,280			13,848,871			13,733,418
Total Deposits	12,670,034				12,044,473			11,914,656			11,608,134			11,449,198
Total Shareholders' Equity	1,050,801				1,028,904			1,011,976			992,686			986,368

Performance Ratios
Return on Average Assets	1.17			%	1.12		%	1.12		%	1.09		%	1.12		%
Return on Average Shareholders' Equity	15.87				15.15			15.36			15.02			14.64
Efficiency Ratio ¹	58.38				60.54			59.99			61.01			59.96
Net Interest Margin²	2.86				2.87			2.85			2.83			2.77


¹ Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
² Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.



Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends													Table 15
	Five Months Ended					Year Ended
($ in millions; jobs in thousands)	May 31, 2014					December 31, 2013					December 31, 2012
Hawaii Economic Trends
State General Fund Revenues ¹	$	2,340.8	(1.0	)	%	$	5,451.3	3.7		%	$	5,259.1		12.8		%
General Excise and Use Tax Revenue ¹	$	1,281.6	(0.1	)	%	$	2,907.6	2.2		%	$	2,844.7		9.9		%
Jobs ²	632.5					623.1					619.3

								June 30,			December 31,
(spot rates)								2014			2013			2012
Unemployment ³
Statewide, seasonally adjusted								4.4		%	4.7		%	5.1		%

Oahu								4.5			3.8			4.2
Island of Hawaii								6.6			5.9			6.9
Maui								5.1			4.7			5.2
Kauai								5.4			5.2			6.1

								June 30,			December 31,
(percentage change, except months of inventory)								2014			2013			2012
Housing Trends (Single Family Oahu) ⁴
Median Home Price								7.1		%	4.8		%	7.8		%
Home Sales Volume (units)								(0.2	)	%	4.6		%	6.5		%
Months of Inventory								2.8			2.7			2.5

						Monthly Visitor Arrivals,					Percentage Change
(in thousands)						Not Seasonally Adjusted					from Previous Year
Tourism ⁵

May 31, 2014								649.1						1.8
April 30, 2014								662.6						(0.7	)
March 31, 2014								728.8						(5.2	)
February 28, 2014								646.8						(4.3	)
January 31, 2014								682.6						0.1
December 31, 2013								722.4						(1.9	)
November 30, 2013								620.1						(5.5	)
October 31, 2013								636.2						(1.6	)
September 30, 2013								594.2						(1.0	)
August 31, 2013								748.8						2.5
July 31, 2013								758.0						4.6
June 30, 2013								716.6						5.5
May 31, 2013								637.5						2.4
April 30, 2013								667.0						3.1
March 31, 2013								769.1						7.6
February 28, 2013								675.5						7.8
January 31, 2013								681.9						5.9
December 31, 2012								733.7						6.3
November 30, 2012								651.2						14.5
October 31, 2012								640.7						8.6
September 30, 2012								595.0						6.1
August 31, 2012								725.6						11.0
July 31, 2012								720.4						7.8
June 30, 2012								677.2						11.5
May 31, 2012								622.9						12.5

¹ Source: Hawaii Department of Business, Economic Development & Tourism
² Source: U. S. Bureau of Labor
³ Source: Hawaii Department of Labor and Industrial Relations
⁴ Source: Honolulu Board of REALTORS
⁵ Source: Hawaii Tourism Authority
Note: Certain prior period seasonally adjusted information has been revised.

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