BANK OF HAWAII CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1 BOH 2Q2015 ER 072715

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8-K - 8-K BOH 2Q2015 ER 07.27.15 - BANK OF HAWAII CORP	boh-2q2015er8k072715.htm

Bank of Hawaii Corporation Second Quarter 2015 Financial Results


•	Diluted Earnings Per Share $0.95


•	Net Income $41.2 Million


•	Board of Directors Declares Dividend of $0.45 Per Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (July 27, 2015) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.95 for the second quarter of 2015, down from diluted earnings per share of $0.97 in the previous quarter and up from diluted earnings per share of $0.94 in the same quarter last year. Net income for the second quarter of 2015 was $41.2 million compared with net income of $42.4 million in the first quarter of 2015 and net income of $41.5 million in the second quarter of 2014. There were no sales of Visa Class B shares during the second quarter of 2015.

Loan and lease balances increased to $7.4 billion at June 30, 2015, up 3.5 percent from March 31, 2015 and up 15.6 percent compared with June 30, 2014. During the quarter the Company resumed sales of mortgages and sold $64.4 million in loans, increasing noninterest income $1.2 million. Deposits remained strong during the quarter, as balances increased to $13.1 billion at June 30, 2015 compared with $13.0 billion at March 31, 2015 and $12.7 billion at June 30, 2014.

“Bank of Hawaii Corporation continued to perform well during the second quarter of 2015,” said Peter Ho, Chairman, President, and CEO. “Loan balances continued to grow, our margin was stable at 2.81 percent, asset quality remains strong, and expenses were well controlled.”

The return on average assets for the second quarter of 2015 was 1.10 percent, down from 1.15 percent in the previous quarter and 1.17 percent in the same quarter last year. The return on average equity for the second quarter of 2015 was 15.33 percent, down from 16.18 percent for the first quarter of 2015 and 15.87 percent in the second quarter of 2014. The efficiency ratio for the second quarter of 2015 was 58.16 percent, an improvement from 58.30 percent in the previous quarter and 58.38 percent in the same quarter last year.

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Bank of Hawaii Corporation Second Quarter 2015 Financial Results Page 2

For the six-month period ended June 30, 2015, net income was $83.6 million, an increase from net income of $80.1 million during the same period last year. Diluted earnings per share were $1.92 for the first half of 2015, up from diluted earnings per share of $1.81 for the first half of 2014. The year-to-date return on average assets for the six-month period ended June 30, 2015 was 1.12 percent compared with 1.14 percent for the same six months in 2014. The year-to-date return on average equity was 15.75 percent, up from 15.51 percent for the six months ended June 30, 2014. The efficiency ratio for the first half of 2015 improved to 58.23 percent compared with 59.46 percent in the same period last year.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the second quarter of 2015 was $100.8 million, up $1.2 million from net interest income of $99.6 million in the first quarter of 2015 and up $3.5 million from net interest income of $97.3 million in the second quarter of 2014. Net interest income for the first half of 2015 was $200.4 million, an increase of $7.1 million compared with $193.3 million for the first half of 2014. Analyses of the changes in net interest income are included in Tables 8a, 8b, and 8c.

The net interest margin was 2.81 percent for the second quarter of 2015, unchanged from the previous quarter and a 5 basis point decrease from the net interest margin of 2.86 percent in the second quarter of 2014. The net interest margin for the first six months of 2015 was 2.81 percent compared with 2.87 percent for the same six-month period last year.

The Company did not record a provision for credit losses during the first half of 2015. A negative provision for credit losses of $2.2 million was recorded during the second quarter of 2014 due to strong credit recoveries and improving asset quality.

Noninterest income was $45.9 million in the second quarter of 2015, a decrease of $6.4 million compared with noninterest income of $52.3 million in the first quarter of 2015, and an increase of $1.4 million compared with noninterest income of $44.5 million in the second quarter of 2014. Mortgage banking income increased to $3.5 million in the second quarter of 2015 compared with $1.7 million in the previous quarter and $1.8 million in the same quarter last year. Noninterest income in the first quarter of 2015 included a net gain of $10.1 million resulting from the sale of 95,000 Visa Class B shares. 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. Noninterest income for the first half of 2015 was $98.2 million, an increase of $9.0 million compared with $89.2 million for the first half of 2014. The increase was primarily due to the timing of the Visa Class B shares sales.

Noninterest expense was $83.6 million in the second quarter of 2015, down $3.3 million compared with noninterest expense of $86.9 million in the first quarter of 2015, and up $2.5 million compared with noninterest expense of $81.1 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. Noninterest expense in the second quarter of 2015 included separation expense of $0.9 million compared with $1.9 million in the previous quarter and $87 thousand in the same quarter last year. An analysis of noninterest expenses related to salaries and benefits is included in Table 9. Noninterest expense for the first half of 2015 was $170.5 million, an increase of $5.9 million compared with $164.6 million for the first half of 2014.

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Bank of Hawaii Corporation Second Quarter 2015 Financial Results Page 3

The effective tax rate for the second quarter of 2015 was 31.56 percent compared with 31.72 percent in the previous quarter and 30.86 percent in the same quarter last year. The effective tax rate for the first half of 2015 was 31.64 percent compared with 30.04 percent during the same period last year. The lower effective tax rate in 2014 was primarily due to the release of reserves 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 asset quality remained strong during the second quarter of 2015. Total non-performing assets were $29.5 million at June 30, 2015, up $0.7 million from non-performing assets of $28.8 million at March 31, 2015 and down $4.9 million from non-performing assets of $34.4 million at June 30, 2014. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.40 percent at the end of the second quarter of 2015, unchanged from the first quarter of 2015, and down from 0.53 percent at the end of the second quarter last year.

Accruing loans and leases past due 90 days or more were $9.7 million at June 30, 2015, up from $8.0 million at March 31, 2015 and down slightly from June 30, 2014. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $48.3 million at June 30, 2015 compared with $43.6 million at June 30, 2014. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loan and lease charge-offs during the second quarter of 2015 were $1.5 million or 0.08 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $3.5 million were partially offset by recoveries of $2.0 million. Net loan and lease charge-offs during the first quarter of 2015 were $1.2 million or 0.07 percent annualized of total average loans and leases outstanding and were comprised of $4.1 million in charge-offs partially offset by recoveries of $2.9 million. Net recoveries in the second quarter of 2014 were $1.9 million and comprised of $4.0 million in charge-offs and recoveries of $5.9 million. Net charge-offs in the first half of 2015 were $2.7 million or 0.08 percent annualized of total average loans and leases outstanding compared with net recoveries of $0.6 million in the first half of 2014.

The allowance for loan and lease losses was reduced to $106.0 million at June 30, 2015. The ratio of the allowance for loan and lease losses to total loans and leases was 1.43 percent at June 30, 2015, 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, 2015 was 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.

Other Financial Highlights

Total assets were $15.25 billion at June 30, 2015, up from total assets of $15.14 billion at March 31, 2015 and $14.84 billion at June 30, 2014. Average total assets increased to $15.04 billion during the second quarter of 2015, up from $14.95 billion during the previous quarter and $14.25 billion during the same quarter last year.

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Bank of Hawaii Corporation Second Quarter 2015 Financial Results Page 4

The investment securities portfolio was $6.47 billion at June 30, 2015, down from $6.58 billion at March 31, 2015 and $6.91 billion at June 30, 2014. The portfolio remains largely comprised of securities issued by U. S. government agencies and included $4.20 billion in securities held to maturity and $2.28 billion in securities available for sale at June 30, 2015.

Total loans and leases were $7.43 billion at June 30, 2015, up from total loans and leases of $7.18 billion at March 31, 2015 and total loans and leases of $6.43 billion at June 30, 2014. Year-to-date total loan growth in 2015 was 7.7 percent compared with growth of 5.4 percent during the same period last year. Average total loans and leases were $7.30 billion during the second quarter of 2015, up from $7.05 billion during the first quarter of 2015, and up from $6.27 billion during the same quarter last year.

The commercial loan portfolio was $3.04 billion at the end of the second quarter of 2015, an increase of 3.0 percent from commercial loans of $2.96 billion at the end of the first quarter of 2015, and up 13.0 percent from commercial loans of $2.69 billion at the end of the same quarter last year. The consumer loan portfolio was $4.39 billion at the end of the second quarter of 2015, an increase of 3.8 percent from consumer loans of $4.22 billion at the end of the first quarter of 2015 and up 17.5 percent from $3.73 billion at the end of the same quarter last year. Loan and lease portfolio balances are summarized in Table 10.

Total deposits increased to $13.09 billion at June 30, 2015 compared with total deposits of $12.98 billion at March 31, 2015 and total deposits of $12.67 billion at June 30, 2014. Average total deposits were $12.86 billion during the second quarter of 2015, up from $12.79 billion during the previous quarter and $12.03 billion during the same quarter last year.

Consumer deposits were $6.22 billion at June 30, 2015, up slightly from March 31, 2015 and up 4.8 percent compared with June 30, 2014. Commercial deposits were $5.52 billion at June 30, 2015, up 1.5 percent from March 31, 2015 and up 6.1 percent compared with June 30, 2014. Other deposits, including public funds, were $1.34 billion at June 30, 2015, an increase of 2.3 percent from March 31, 2015 and down 11.8 percent compared with June 30, 2014. The decrease in other deposits compared with the end of the second quarter of 2014 was due to short-term public funds. Deposit balances are summarized in Tables 7 and 10.

During the second quarter of 2015, the Company repurchased 183.7 thousand shares of common stock at a total cost of $11.5 million under its share repurchase program. The average cost was $62.46 per share repurchased. From the beginning of the share repurchase program initiated during July of 2001 through June 30, 2015, the Company has repurchased 52.4 million shares and returned over $1.9 billion to shareholders at an average cost of $37.12 per share. From July 1 through July 24, 2015, the Company repurchased an additional 42.5 thousand shares of common stock at an average cost of $66.93 per share. Remaining buyback authority under the share repurchase program was $48.6 million at July 24, 2015.

Total shareholders’ equity was $1.08 billion at June 30, 2015, up slightly from March 31, 2015 and up from $1.05 billion at June 30, 2014. At June 30, 2015, the Tier 1 Capital Ratio was 14.47 percent compared with 14.62 percent at March 31, 2015 and 15.66 percent at June 30, 2014. The Tier 1 leverage ratio at June 30, 2015 was 7.21 percent compared with 7.17 percent at March 31, 2015 and 7.20 percent at June 30, 2014. Capital ratios are calculated under Basel III rules, which became effective January 1, 2015.

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Bank of Hawaii Corporation Second Quarter 2015 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, 2015 to shareholders of record at the close of business on August 31, 2015.

Hawaii Economy

Economic conditions in Hawaii continue to remain positive due to an active construction industry, stable tourism, low unemployment, and a strong real estate market. For the first five months of 2015, total visitor spending increased 2.0 percent and total arrivals increased 4.1 percent compared to the same period in 2014. The statewide seasonally-adjusted unemployment rate was at 4.0 percent in June 2015 compared to 5.3 percent nationally. For the first six months of 2015, the volume of single-family home sales on Oahu increased 3.4 percent compared with the same period in 2014. The volume of condominium sales on Oahu increased 3.3 percent compared with the same period in 2014. During the first half of 2015 the median price of single-family home sales on Oahu was 2.3 percent higher and the median price of a condominium was 2.4 percent higher compared with 2014. As of June 30, 2015, months of inventory of single-family homes and condominiums on Oahu remained low at approximately 3.2 months and 3.5 months, respectively. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its second quarter 2015 financial results today at 2:00 p.m. Eastern Time (8:00 a.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 27, 2015 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 40183653# 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, 2014, 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 1
	Three Months Ended										Six Months Ended
	June 30,			March 31,			June 30,				June 30,
(dollars in thousands, except per share amounts)	2015			2015			2014				2015			2014
For the Period:
Operating Results
Net Interest Income	$	97,782		$	96,770		$	94,412			$	194,552		$	187,645
Provision for Credit Losses	—			—			(2,199		)		—			(2,199		)
Total Noninterest Income	45,925			52,307			44,481				98,232			89,249
Total Noninterest Expense	83,574			86,915			81,082				170,489			164,629
Net Income	41,154			42,442			41,490				83,596			80,082
Basic Earnings Per Share	0.95			0.98			0.94				1.93			1.81
Diluted Earnings Per Share	0.95			0.97			0.94				1.92			1.81
Dividends Declared Per Share	0.45			0.45			0.45				0.90			0.90

Performance Ratios
Return on Average Assets	1.10		%	1.15		%	1.17			%	1.12		%	1.14			%
Return on Average Shareholders' Equity	15.33			16.18			15.87				15.75			15.51
Efficiency Ratio ¹	58.16			58.30			58.38				58.23			59.46
Net Interest Margin ²	2.81			2.81			2.86				2.81			2.87
Dividend Payout Ratio³	47.37			45.92			47.87				46.63			49.72
Average Shareholders' Equity to Average Assets	7.16			7.12			7.36				7.14			7.36

Average Balances
Average Loans and Leases	$	7,300,506		$	7,053,061		$	6,274,595			$	7,177,467		$	6,189,789
Average Assets	15,038,500			14,946,037			14,253,384				14,992,524			14,144,273
Average Deposits	12,863,274			12,786,449			12,030,010				12,825,074			11,922,874
Average Shareholders' Equity	1,076,467			1,064,112			1,048,429				1,070,324			1,040,962

Per Share of Common Stock
Book Value	$	24.88		$	24.63		$	23.72			$	24.88		$	23.72
Tangible Book Value	24.15			23.91			23.01				24.15			23.01
Market Value
Closing	66.68			61.21			58.69				66.68			58.69
High	68.10			62.58			61.73				68.10			61.73
Low	58.70			53.90			53.45				53.90			53.45

				June 30,			March 31,				December 31,			June 30,
				2015			2015				2014			2014
As of Period End:
Balance Sheet Totals
Loans and Leases				$	7,428,438		$	7,178,628			$	6,897,589		$	6,426,353
Total Assets				15,248,043			15,139,179				14,787,208			14,844,505
Total Deposits				13,090,695			12,979,616				12,633,089			12,670,034
Other Debt				170,816			173,898				173,912			173,671
Total Shareholders' Equity				1,082,939			1,075,251				1,055,086			1,050,801

Asset Quality
Non-Performing Assets				$	29,450		$	28,777			$	30,082		$	34,389
Allowance for Loans and Leases				106,006			107,461				108,688			113,838
Allowance to Loans and Leases Outstanding				1.43		%	1.50			%	1.58		%	1.77			%

Capital Ratios
Common Equity Tier 1 Capital Ratio ⁴				14.47		%	14.62			%	n/a			n/a
Tier 1 Capital Ratio⁴				14.47			14.62				14.69		%	15.66			%
Total Capital Ratio ⁴				15.72			15.87				15.94			16.91
Tier 1 Leverage Ratio ⁴				7.21			7.17				7.13			7.20
Total Shareholders' Equity to Total Assets				7.10			7.10				7.14			7.08
Tangible Common Equity to Tangible Assets ⁵				6.91			6.91				6.94			6.88
Tangible Common Equity to Risk-Weighted Assets^{4, 5}				14.03			14.27				14.46			15.54

Non-Financial Data
Full-Time Equivalent Employees				2,166			2,156				2,161			2,194
Branches				71			74				74			74
ATMs				455			456				459			457

¹ Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
² Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
³ Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.
⁴ Capital ratios as of June 30, 2015 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.
⁵ Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 “Reconciliation of Non-GAAP Financial Measures."



Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures											Table 2
		June 30,			March 31,			December 31,			June 30,
(dollars in thousands)		2015			2015			2014			2014
Total Shareholders' Equity		$	1,082,939		$	1,075,251		$	1,055,086		$	1,050,801
Less:	Goodwill	31,517			31,517			31,517			31,517
Tangible Common Equity		$	1,051,422		$	1,043,734		$	1,023,569		$	1,019,284

Total Assets		$	15,248,043		$	15,139,179		$	14,787,208		$	14,844,505
Less:	Goodwill	31,517			31,517			31,517			31,517
Tangible Assets		$	15,216,526		$	15,107,662		$	14,755,691		$	14,812,988

Risk-Weighted Assets, determined in accordance
	with prescribed regulatory requirements ¹	$	7,495,744		$	7,313,682		$	7,077,035		$	6,559,897

Total Shareholders' Equity to Total Assets		7.10		%	7.10		%	7.14		%	7.08		%
Tangible Common Equity to Tangible Assets (Non-GAAP)		6.91		%	6.91		%	6.94		%	6.88		%

Tier 1 Capital Ratio ¹		14.47		%	14.62		%	14.69		%	15.66		%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) ¹		14.03		%	14.27		%	14.46		%	15.54		%


¹ Risk-weighted assets and capital ratios as of June 30, 2015 and March 31, 2015 calculated under Basel III rules, which became effective January 1, 2015.



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)	2015		2015		2014			2015		2014
Interest Income
Interest and Fees on Loans and Leases	$	73,565	$	70,961	$	65,818		$	144,526	$	129,344
Income on Investment Securities
Available-for-Sale	10,273		10,198		10,697			20,471		21,457
Held-to-Maturity	22,832		24,407		26,938			47,239		54,827
Deposits	2		3		1			5		4
Funds Sold	268		259		168			527		305
Other	310		302		302			612		604
Total Interest Income	107,250		106,130		103,924			213,380		206,541
Interest Expense
Deposits	2,405		2,368		2,393			4,773		4,751
Securities Sold Under Agreements to Repurchase	6,440		6,371		6,465			12,811		12,862
Funds Purchased	3		3		4			6		7
Other Debt	620		618		650			1,238		1,276
Total Interest Expense	9,468		9,360		9,512			18,828		18,896
Net Interest Income	97,782		96,770		94,412			194,552		187,645
Provision for Credit Losses	—		—		(2,199		)	—		(2,199		)
Net Interest Income After Provision for Credit Losses	97,782		96,770		96,611			194,552		189,844
Noninterest Income
Trust and Asset Management	12,355		12,180		12,005			24,535		23,857
Mortgage Banking	3,469		1,693		1,804			5,162		3,809
Service Charges on Deposit Accounts	8,203		8,537		8,638			16,740		17,516
Fees, Exchange, and Other Service Charges	13,352		12,897		13,370			26,249		26,309
Investment Securities Gains, Net	86		10,231		2,079			10,317		4,239
Annuity and Insurance	1,885		2,044		1,930			3,929		4,053
Bank-Owned Life Insurance	2,088		1,734		1,519			3,822		3,121
Other	4,487		2,991		3,136			7,478		6,345
Total Noninterest Income	45,925		52,307		44,481			98,232		89,249
Noninterest Expense
Salaries and Benefits	47,610		49,780		45,081			97,390		91,978
Net Occupancy	8,605		9,333		9,254			17,938		18,671
Net Equipment	4,826		5,288		4,669			10,114		9,272
Data Processing	3,673		3,773		3,842			7,446		7,491
Professional Fees	2,265		2,334		2,613			4,599		4,873
FDIC Insurance	2,068		2,140		2,055			4,208		4,131
Other	14,527		14,267		13,568			28,794		28,213
Total Noninterest Expense	83,574		86,915		81,082			170,489		164,629
Income Before Provision for Income Taxes	60,133		62,162		60,010			122,295		114,464
Provision for Income Taxes	18,979		19,720		18,520			38,699		34,382
Net Income	$	41,154	$	42,442	$	41,490		$	83,596	$	80,082
Basic Earnings Per Share	$	0.95	$	0.98	$	0.94		$	1.93	$	1.81
Diluted Earnings Per Share	$	0.95	$	0.97	$	0.94		$	1.92	$	1.81
Dividends Declared Per Share	$	0.45	$	0.45	$	0.45		$	0.90	$	0.90
Basic Weighted Average Shares	43,305,813		43,386,402		44,053,899			43,345,667		44,123,030
Diluted Weighted Average Shares	43,518,349		43,597,504		44,246,431			43,558,664		44,332,838



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income												Table 4
		Three Months Ended							Six Months Ended
		June 30,			March 31,		June 30,		June 30,
(dollars in thousands)		2015			2015		2014		2015			2014
Net Income		$	41,154		$	42,442	$	41,490	$	83,596		$	80,082
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities	(7,610		)	5,294		8,617		(2,316		)	14,888
	Defined Benefit Plans	220			220		156		440			312
Total Other Comprehensive Income (Loss)		(7,390		)	5,514		8,773		(1,876		)	15,200
Comprehensive Income		$	33,764		$	47,956	$	50,263	$	81,720		$	95,282



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands)	2015			2015			2014			2014
Assets
Interest-Bearing Deposits in Other Banks	$	3,420		$	3,383		$	2,873		$	4,552
Funds Sold	602,598			620,331			360,577			796,275
Investment Securities
Available-for-Sale	2,275,361			2,271,186			2,289,190			2,209,763
Held-to-Maturity (Fair Value of $4,240,732; $4,378,007; $4,504,495; and $4,743,012)	4,199,121			4,306,353			4,466,679			4,704,551
Loans Held for Sale	18,483			1,951			5,136			3,678
Loans and Leases	7,428,438			7,178,628			6,897,589			6,426,353
Allowance for Loan and Lease Losses	(106,006		)	(107,461		)	(108,688		)	(113,838		)
Net Loans and Leases	7,322,432			7,071,167			6,788,901			6,312,515
Total Earning Assets	14,421,415			14,274,371			13,913,356			14,031,334
Cash and Due from Banks	150,874			151,793			172,126			141,950
Premises and Equipment, Net	108,439			109,223			109,854			108,116
Accrued Interest Receivable	44,475			47,017			44,654			44,311
Foreclosed Real Estate	1,989			2,095			2,311			3,944
Mortgage Servicing Rights	23,426			23,643			24,695			26,397
Goodwill	31,517			31,517			31,517			31,517
Bank-Owned Life Insurance	265,133			264,228			262,807			260,403
Other Assets	200,775			235,292			225,888			196,533
Total Assets	$	15,248,043		$	15,139,179		$	14,787,208		$	14,844,505

Liabilities
Deposits
Noninterest-Bearing Demand	$	4,156,847		$	4,047,334		$	3,832,943		$	4,070,334
Interest-Bearing Demand	2,699,517			2,608,664			2,559,570			2,566,240
Savings	5,044,711			5,014,686			4,806,575			4,525,593
Time	1,189,620			1,308,932			1,434,001			1,507,867
Total Deposits	13,090,695			12,979,616			12,633,089			12,670,034
Funds Purchased	8,459			8,459			8,459			8,467
Securities Sold Under Agreements to Repurchase	672,310			672,329			688,601			745,626
Other Debt	170,816			173,898			173,912			173,671
Retirement Benefits Payable	55,181			55,197			55,477			35,017
Accrued Interest Payable	5,254			5,836			5,148			5,099
Taxes Payable and Deferred Taxes	26,244			46,987			27,777			42,131
Other Liabilities	136,145			121,606			139,659			113,659
Total Liabilities	14,165,104			14,063,928			13,732,122			13,793,704
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: June 30, 2015 - 57,745,324 / 43,535,020;
March 31, 2015 - 57,733,267 / 43,652,628; December 31, 2014 - 57,634,755 / 43,724,208;
and June 30, 2014 - 57,631,552 / 44,297,228)	575			575			574			573
Capital Surplus	536,782			534,141			531,932			527,284
Accumulated Other Comprehensive Loss	(28,562		)	(21,172		)	(26,686		)	(16,623		)
Retained Earnings	1,278,672			1,257,341			1,234,801			1,191,512
Treasury Stock, at Cost (Shares: June 30, 2015 - 14,210,304; March 31, 2015 - 14,080,639;
December 31, 2014 - 13,910,547; and June 30, 2014 - 13,334,324)	(704,528		)	(695,634		)	(685,535		)	(651,945		)
Total Shareholders' Equity	1,082,939			1,075,251			1,055,086			1,050,801
Total Liabilities and Shareholders' Equity	$	15,248,043		$	15,139,179		$	14,787,208		$	14,844,505



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, 2014		43,724,208		$	574	$	531,932	$	(26,686	)	$	1,234,801		$	(685,535	)	$	1,055,086
Net Income		—		—		—		—			83,596			—			83,596
Other Comprehensive Loss		—		—		—		(1,876		)	—			—			(1,876		)
Share-Based Compensation		—		—		3,731		—			—			—			3,731
Common Stock Issued under Purchase and Equity
	Compensation Plans and Related Tax Benefits	213,289		1		1,119		—			(408		)	5,394			6,106
Common Stock Repurchased		(402,477	)	—		—		—			—			(24,387		)	(24,387		)
Cash Dividends Declared ($0.90 per share)		—		—		—		—			(39,317		)	—			(39,317		)
Balance as of June 30, 2015		43,535,020		$	575	$	536,782	$	(28,562	)	$	1,278,672		$	(704,528	)	$	1,082,939

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 Declared ($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



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, 2015						March 31, 2015						June 30, 2014
		Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	3.5	$	—	0.17	%	$	3.1	$	—	0.44	%	$	4.0	$	—	0.12	%
Funds Sold		473.5		0.3		0.22		484.3		0.2		0.21		308.3		0.2		0.22
Investment Securities
	Available-for-Sale
	Taxable	1,558.6		6.5		1.68		1,560.8		6.5		1.67		1,525.1		7.0		1.84
	Non-Taxable	725.8		5.8		3.17		723.3		5.7		3.16		701.6		5.7		3.25
	Held-to-Maturity
	Taxable	4,006.4		21.3		2.12		4,140.9		22.8		2.21		4,505.0		25.3		2.25
	Non-Taxable	248.2		2.4		3.93		249.1		2.5		3.94		251.8		2.5		3.96
Total Investment Securities		6,539.0		36.0		2.20		6,674.1		37.5		2.25		6,983.5		40.5		2.32
Loans Held for Sale		11.1		0.1		3.66		3.1		—		3.63		3.6		—		4.33
Loans and Leases ¹
	Commercial and Industrial	1,156.3		9.1		3.16		1,130.5		8.9		3.18		950.2		8.1		3.42
	Commercial Mortgage	1,499.7		14.4		3.85		1,449.5		13.7		3.83		1,302.2		12.7		3.91
	Construction	126.0		1.5		4.85		103.8		1.1		4.39		103.2		1.2		4.48
	Commercial Lease Financing	225.1		2.0		3.47		225.9		1.9		3.42		241.2		1.7		2.80
	Residential Mortgage	2,736.2		28.3		4.14		2,631.3		27.5		4.18		2,323.5		25.4		4.38
	Home Equity	906.8		8.1		3.60		878.5		8.1		3.72		805.9		7.9		3.93
	Automobile	344.4		4.5		5.20		331.5		4.3		5.25		280.6		3.7		5.33
	Other ²	306.0		5.7		7.51		302.1		5.5		7.36		267.8		5.1		7.65
Total Loans and Leases		7,300.5		73.6		4.04		7,053.1		71.0		4.06		6,274.6		65.8		4.20
Other		51.6		0.3		2.40		66.0		0.3		1.83		74.1		0.3		1.63
Total Earning Assets ³		14,379.2		110.3		3.07		14,283.7		109.0		3.07		13,648.1		106.8		3.13
Cash and Due from Banks		125.8						136.5						138.3
Other Assets		533.5						525.8						467.0
Total Assets		$	15,038.5					$	14,946.0					$	14,253.4

Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,611.9	0.2		0.03		$	2,577.1	0.2		0.03		$	2,359.2	0.2		0.03
	Savings	5,023.5		1.1		0.09		4,941.0		1.1		0.09		4,540.3		1.0		0.09
	Time	1,256.6		1.1		0.35		1,378.3		1.1		0.33		1,506.5		1.2		0.33
Total Interest-Bearing Deposits		8,892.0		2.4		0.11		8,896.4		2.4		0.11		8,406.0		2.4		0.11
Short-Term Borrowings		8.5		—		0.14		8.5		—		0.14		9.3		—		0.14
Securities Sold Under Agreements to Repurchase		672.2		6.5		3.79		678.0		6.4		3.76		789.9		6.5		3.24
Other Debt		173.9		0.6		1.43		173.9		0.6		1.43		175.3		0.6		1.49
Total Interest-Bearing Liabilities		9,746.6		9.5		0.39		9,756.8		9.4		0.39		9,380.5		9.5		0.40
Net Interest Income				$	100.8					$	99.6					$	97.3
	Interest Rate Spread					2.68	%					2.68	%					2.73	%
	Net Interest Margin					2.81	%					2.81	%					2.86	%
Noninterest-Bearing Demand Deposits		3,971.3						3,890.0						3,624.0
Other Liabilities		244.1						235.1						200.5
Shareholders' Equity		1,076.5						1,064.1						1,048.4
Total Liabilities and Shareholders' Equity		$	15,038.5					$	14,946.0					$	14,253.4


¹ Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
² Comprised of other consumer revolving credit, installment, and consumer lease financing.
³ Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $3,008,000, $2,878,000 and $2,874,000 for the three months ended
	June 30, 2015, March 31, 2015, and June 30, 2014, 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, 2015						June 30, 2014
		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	3.2	$	—	0.30	%	$	4.8	$	—	0.18	%
Funds Sold		478.9		0.5		0.22		289.5		0.3		0.21
Investment Securities
	Available-for-Sale
	Taxable	1,559.7		13.0		1.67		1,536.9		14.2		1.85
	Non-Taxable	724.6		11.5		3.17		689.6		11.2		3.26
	Held-to-Maturity
	Taxable	4,073.2		44.0		2.17		4,503.3		51.6		2.29
	Non-Taxable	248.7		4.9		3.94		252.2		4.9		3.96
Total Investment Securities		6,606.2		73.4		2.23		6,982.0		81.9		2.35
Loans Held for Sale		7.1		0.1		3.65		3.9		0.1		4.52
Loans and Leases ¹
	Commercial and Industrial	1,143.5		18.0		3.17		937.1		15.9		3.42
	Commercial Mortgage	1,474.8		28.1		3.84		1,276.2		25.4		4.01
	Construction	115.0		2.6		4.64		100.3		2.2		4.45
	Commercial Lease Financing	225.5		3.9		3.44		243.5		3.1		2.56
	Residential Mortgage	2,684.0		55.8		4.16		2,305.3		49.8		4.32
	Home Equity	892.7		16.2		3.66		793.9		15.6		3.95
	Automobile	338.0		8.8		5.23		272.0		7.2		5.36
	Other ²	304.0		11.2		7.43		261.5		10.1		7.77
Total Loans and Leases		7,177.5		144.6		4.05		6,189.8		129.3		4.20
Other		58.8		0.6		2.08		75.5		0.6		1.60
Total Earning Assets ³		14,331.7		219.2		3.07		13,545.5		212.2		3.14
Cash and Due from Banks		131.1						140.4
Other Assets		529.7						458.4
Total Assets		$	14,992.5					$	14,144.3

Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,594.6	0.4		0.03		$	2,342.6	0.4		0.03
	Savings	4,982.5		2.2		0.09		4,528.0		1.9		0.09
	Time	1,317.1		2.2		0.34		1,440.2		2.5		0.35
Total Interest-Bearing Deposits		8,894.2		4.8		0.11		8,310.8		4.8		0.12
Short-Term Borrowings		8.4		—		0.14		9.6		—		0.14
Securities Sold Under Agreements to Repurchase		675.2		12.8		3.77		792.2		12.8		3.23
Other Debt		173.9		1.2		1.43		175.0		1.3		1.46
Total Interest-Bearing Liabilities		9,751.7		18.8		0.39		9,287.6		18.9		0.41
Net Interest Income				$	200.4					$	193.3
	Interest Rate Spread					2.68	%					2.73	%
	Net Interest Margin					2.81	%					2.87	%
Noninterest-Bearing Demand Deposits		3,930.9						3,612.1
Other Liabilities		239.6						203.6
Shareholders' Equity		1,070.3						1,041.0
Total Liabilities and Shareholders' Equity		$	14,992.5					$	14,144.3


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 $5,886,000 and $5,698,000 for the six months ended
	June 30, 2015 and June 30, 2014, respectively.



Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended June 30, 2015
	Compared to March 31, 2015
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	—		$	0.1		$	0.1
Investment Securities
Available-for-Sale
Non-Taxable	—			0.1			0.1
Held-to-Maturity
Taxable	(0.7		)	(0.8		)	(1.5		)
Non-Taxable	—			(0.1		)	(0.1		)
Total Investment Securities	(0.7		)	(0.8		)	(1.5		)
Loans Held for Sale	0.1			—			0.1
Loans and Leases
Commercial and Industrial	0.3			(0.1		)	0.2
Commercial Mortgage	0.6			0.1			0.7
Construction	0.3			0.1			0.4
Commercial Lease Financing	—			0.1			0.1
Residential Mortgage	1.1			(0.3		)	0.8
Home Equity	0.2			(0.2		)	—
Automobile	0.2			—			0.2
Other ²	0.1			0.1			0.2
Total Loans and Leases	2.8			(0.2		)	2.6
Other	(0.1		)	0.1			—
Total Change in Interest Income	2.1			(0.8		)	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		)	0.2			0.1

Change in Net Interest Income	$	2.2		$	(1.0	)	$	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, 2015
	Compared to June 30, 2014
(dollars in millions)	Volume ¹			Rate¹			Total
Change in Interest Income:
Funds Sold	$	0.1		$	—		$	0.1
Investment Securities
Available-for-Sale
Taxable	0.1			(0.6		)	(0.5		)
Non-Taxable	0.2			(0.1		)	0.1
Held-to-Maturity
Taxable	(2.7		)	(1.3		)	(4.0		)
Non-Taxable	—			(0.1		)	(0.1		)
Total Investment Securities	(2.4		)	(2.1		)	(4.5		)
Loans Held for Sale	0.1			—			0.1
Loans and Leases
Commercial and Industrial	1.7			(0.7		)	1.0
Commercial Mortgage	1.9			(0.2		)	1.7
Construction	0.3			—			0.3
Commercial Lease Financing	(0.1		)	0.4			0.3
Residential Mortgage	4.3			(1.4		)	2.9
Home Equity	0.9			(0.7		)	0.2
Automobile	0.8			—			0.8
Other ²	0.7			(0.1		)	0.6
Total Loans and Leases	10.5			(2.7		)	7.8
Other	(0.1		)	0.1			—
Total Change in Interest Income	8.2			(4.7		)	3.5

Change in Interest Expense:
Interest-Bearing Deposits
Savings	0.1			—			0.1
Time	(0.2		)	0.1			(0.1		)
Total Interest-Bearing Deposits	(0.1		)	0.1			—
Securities Sold Under Agreements to Repurchase	(1.0		)	1.0			—
Total Change in Interest Expense	(1.1		)	1.1			—

Change in Net Interest Income	$	9.3		$	(5.8	)	$	3.5


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, 2015
	Compared to June 30, 2014
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	0.2		$	—		$	0.2
Investment Securities
Available-for-Sale
Taxable	0.2			(1.4		)	(1.2		)
Non-Taxable	0.6			(0.3		)	0.3
Held-to-Maturity
Taxable	(4.8		)	(2.8		)	(7.6		)
Total Investment Securities	(4.0		)	(4.5		)	(8.5		)
Loans Held for Sale	0.1			(0.1		)	—
Loans and Leases
Commercial and Industrial	3.3			(1.2		)	2.1
Commercial Mortgage	3.8			(1.1		)	2.7
Construction	0.3			0.1			0.4
Commercial Lease Financing	(0.2		)	1.0			0.8
Residential Mortgage	7.9			(1.9		)	6.0
Home Equity	1.8			(1.2		)	0.6
Automobile	1.7			(0.1		)	1.6
Other ²	1.6			(0.5		)	1.1
Total Loans and Leases	20.2			(4.9		)	15.3
Other	(0.2		)	0.2			—
Total Change in Interest Income	16.3			(9.3		)	7.0

Change in Interest Expense:
Interest-Bearing Deposits
Savings	0.2			0.1			0.3
Time	(0.2		)	(0.1		)	(0.3		)
Total Interest-Bearing Deposits	—			—			—
Securities Sold Under Agreements to Repurchase	(2.0		)	2.0			—
Other Debt	(0.1		)	—			(0.1		)
Total Change in Interest Expense	(2.1		)	2.0			(0.1		)

Change in Net Interest Income	$	18.4		$	(11.3	)	$	7.1


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)	2015		2015		2014		2015		2014
Salaries	$	28,214	$	27,914	$	28,544	$	56,128	$	56,458
Incentive Compensation	4,959		4,514		4,359		9,473		8,590
Share-Based Compensation	2,751		2,345		2,271		5,096		4,240
Commission Expense	1,927		1,592		1,106		3,519		2,165
Retirement and Other Benefits	4,117		4,731		3,811		8,848		8,797
Payroll Taxes	2,278		3,585		2,179		5,863		5,747
Medical, Dental, and Life Insurance	2,449		3,184		2,724		5,633		5,345
Separation Expense	915		1,915		87		2,830		636
Total Salaries and Benefits	$	47,610	$	49,780	$	45,081	$	97,390	$	91,978



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)		2015		2015		2014		2014		2014
Commercial
	Commercial and Industrial	$	1,173,259	$	1,141,408	$	1,055,243	$	991,157	$	988,940
	Commercial Mortgage	1,528,685		1,477,902		1,437,513		1,373,289		1,345,549
	Construction	118,714		111,381		109,183		132,097		121,434
	Lease Financing	222,113		224,419		226,189		232,381		237,585
Total Commercial		3,042,771		2,955,110		2,828,128		2,728,924		2,693,508
Consumer
	Residential Mortgage	2,787,847		2,699,434		2,571,090		2,444,989		2,355,085
	Home Equity	931,191		884,742		866,688		838,206		811,180
	Automobile	352,128		339,686		323,848		306,003		287,794
	Other ¹	314,501		299,656		307,835		288,228		278,786
Total Consumer		4,385,667		4,223,518		4,069,461		3,877,426		3,732,845
Total Loans and Leases		$	7,428,438	$	7,178,628	$	6,897,589	$	6,606,350	$	6,426,353


Deposits
		June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)		2015		2015		2014		2014		2014
Consumer		$	6,221,691	$	6,220,391	$	6,092,929	$	5,972,435	$	5,938,123
Commercial		5,524,153		5,444,814		5,163,352		5,070,080		5,207,026
Public and Other		1,344,851		1,314,411		1,376,808		1,318,926		1,524,885
Total Deposits		$	13,090,695	$	12,979,616	$	12,633,089	$	12,361,441	$	12,670,034


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



Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More															Table 11
			June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)			2015			2015			2014			2014			2014
Non-Performing Assets
Non-Accrual Loans and Leases
	Commercial
		Commercial and Industrial	$	8,299		$	8,641		$	9,088		$	8,952		$	10,437
		Commercial Mortgage	716			732			745			1,366			1,403
	Total Commercial		9,015			9,373			9,833			10,318			11,840
	Consumer
		Residential Mortgage	14,918			14,344			14,841			16,756			15,818
		Home Equity	3,528			2,965			3,097			2,671			2,787
	Total Consumer		18,446			17,309			17,938			19,427			18,605
Total Non-Accrual Loans and Leases			27,461			26,682			27,771			29,745			30,445
Foreclosed Real Estate			1,989			2,095			2,311			3,562			3,944
Total Non-Performing Assets			$	29,450		$	28,777		$	30,082		$	33,307		$	34,389

Accruing Loans and Leases Past Due 90 Days or More
Commercial
	Commercial and Industrial		$	750		$	—		$	2		$	14		$	—
Total Commercial			750			—			2			14			—
Consumer
	Residential Mortgage		4,789			3,914			4,506			4,819			6,082
	Home Equity		2,395			2,425			2,596			2,816			2,505
	Automobile		323			537			616			612			236
	Other ¹		1,395			1,078			941			842			844
Total Consumer			8,902			7,954			8,659			9,089			9,667
Total Accruing Loans and Leases Past Due 90 Days or More			$	9,652		$	7,954		$	8,661		$	9,103		$	9,667
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More			$	48,339		$	46,639		$	45,474		$	45,169		$	43,625
Total Loans and Leases			$	7,428,438		$	7,178,628		$	6,897,589		$	6,606,350		$	6,426,353

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.37		%	0.37		%	0.40		%	0.45		%	0.47		%

Ratio of Non-Performing Assets to Total Loans and Leases
	and Foreclosed Real Estate		0.40		%	0.40		%	0.44		%	0.50		%	0.53		%

Ratio of Commercial Non-Performing Assets to Total Commercial Loans
	and Leases and Commercial Foreclosed Real Estate		0.32		%	0.34		%	0.38		%	0.42		%	0.48		%

Ratio of Consumer Non-Performing Assets to Total Consumer Loans
	and Leases and Consumer Foreclosed Real Estate		0.45		%	0.44		%	0.47		%	0.56		%	0.57		%

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		0.53		%	0.51		%	0.56		%	0.64		%	0.69		%

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter			$	28,777		$	30,082		$	33,307		$	34,389		$	37,048
Additions			1,909			621			1,885			2,565			2,798
Reductions
	Payments		(1,020		)	(1,427		)	(1,822		)	(2,381		)	(2,753		)
	Return to Accrual Status		—			(187		)	(1,291		)	(704		)	(904		)
	Sales of Foreclosed Real Estate		(83		)	(37		)	(1,480		)	(449		)	(1,782		)
	Charge-offs/Write-downs		(133		)	(275		)	(517		)	(113		)	(18		)
Total Reductions			(1,236		)	(1,926		)	(5,110		)	(3,647		)	(5,457		)
Balance at End of Quarter			$	29,450		$	28,777		$	30,082		$	33,307		$	34,389


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)			2015			2015			2014			2015			2014
Balance at Beginning of Period			$	113,348		$	114,575		$	120,136		$	114,575		$	121,521
Loans and Leases Charged-Off
	Commercial
		Commercial and Industrial	(255		)	(235		)	(749		)	(490		)	(1,568		)
		Lease Financing	—			—			(66		)	—			(66		)
	Consumer
		Residential Mortgage	(54		)	(559		)	(323		)	(613		)	(652		)
		Home Equity	(211		)	(216		)	(553		)	(427		)	(904		)
		Automobile	(1,237		)	(1,428		)	(711		)	(2,665		)	(1,628		)
		Other ¹	(1,739		)	(1,650		)	(1,595		)	(3,389		)	(3,217		)
Total Loans and Leases Charged-Off			(3,496		)	(4,088		)	(3,997		)	(7,584		)	(8,035		)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
		Commercial and Industrial	456			646			2,132			1,102			3,052
		Commercial Mortgage	14			14			15			28			29
		Construction	8			8			8			16			13
		Lease Financing	8			68			1			76			3
	Consumer
		Residential Mortgage	96			342			2,335			438			2,607
		Home Equity	566			881			351			1,447			902
		Automobile	396			494			343			890			788
		Other ¹	497			408			723			905			1,224
Total Recoveries on Loans and Leases Previously Charged-Off			2,041			2,861			5,908			4,902			8,618
Net Loans and Leases Recovered (Charged-Off)			(1,455		)	(1,227		)	1,911			(2,682		)	583
Provision for Credit Losses			—			—			(2,199		)	—			(2,199		)
Provision for Unfunded Commitments			—			—			(123		)	—			(180		)
Balance at End of Period ²			$	111,893		$	113,348		$	119,725		$	111,893		$	119,725

Components
Allowance for Loan and Lease Losses			$	106,006		$	107,461		$	113,838		$	106,006		$	113,838
Reserve for Unfunded Commitments			5,887			5,887			5,887			5,887			5,887
Total Reserve for Credit Losses			$	111,893		$	113,348		$	119,725		$	111,893		$	119,725

Average Loans and Leases Outstanding			$	7,300,506		$	7,053,061		$	6,274,595		$	7,177,467		$	6,189,789

Ratio of Net Loans and Leases Charged-Off (Recovered) to
	Average Loans and Leases Outstanding (annualized)		0.08		%	0.07		%	-0.12		%	0.08		%	-0.02		%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding			1.43		%	1.50		%	1.77		%	1.43		%	1.77		%


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, 2015
Net Interest Income	$	50,550		$	35,880		$	4,335		$	7,017		$	97,782
Provision for Credit Losses	1,727			(266		)	(8		)	(1,453		)	—
Net Interest Income After Provision for Credit Losses	48,823			36,146			4,343			8,470			97,782
Noninterest Income	20,809			5,793			15,680			3,643			45,925
Noninterest Expense	(49,158		)	(16,569		)	(14,572		)	(3,275		)	(83,574		)
Income Before Provision for Income Taxes	20,474			25,370			5,451			8,838			60,133
Provision for Income Taxes	(7,219		)	(8,975		)	(2,017		)	(768		)	(18,979		)
Net Income	$	13,255		$	16,395		$	3,434		$	8,070		$	41,154
Total Assets as of June 30, 2015	$	4,404,619		$	2,984,756		$	204,253		$	7,654,415		$	15,248,043


Three Months Ended June 30, 2014 ¹
Net Interest Income	$	44,094		$	28,222		$	3,679		$	18,417		$	94,412
Provision for Credit Losses	(414		)	(1,269		)	(226		)	(290		)	(2,199		)
Net Interest Income After Provision for Credit Losses	44,508			29,491			3,905			18,707			96,611
Noninterest Income	19,988			5,581			14,411			4,501			44,481
Noninterest Expense	(48,647		)	(16,462		)	(13,342		)	(2,631		)	(81,082		)
Income Before Provision for Income Taxes	15,849			18,610			4,974			20,577			60,010
Provision for Income Taxes	(5,936		)	(6,320		)	(1,844		)	(4,420		)	(18,520		)
Net Income	$	9,913		$	12,290		$	3,130		$	16,157		$	41,490
Total Assets as of June 30, 2014 ¹	$	3,761,140		$	2,633,218		$	194,220		$	8,255,927		$	14,844,505


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, 2015
Net Interest Income	$	98,900		$	70,148		$	8,636		$	16,868		$	194,552
Provision for Credit Losses	3,450			(730		)	(16		)	(2,704		)	—
Net Interest Income After Provision for Credit Losses	95,450			70,878			8,652			19,572			194,552
Noninterest Income	39,915			11,349			30,407			16,561			98,232
Noninterest Expense	(99,498		)	(34,304		)	(29,162		)	(7,525		)	(170,489		)
Income Before Provision for Income Taxes	35,867			47,923			9,897			28,608			122,295
Provision for Income Taxes	(12,744		)	(16,859		)	(3,662		)	(5,434		)	(38,699		)
Net Income	$	23,123		$	31,064		$	6,235		$	23,174		$	83,596
Total Assets as of June 30, 2015	$	4,404,619		$	2,984,756		$	204,253		$	7,654,415		$	15,248,043


Six Months Ended June 30, 2014 ¹
Net Interest Income	$	85,538		$	55,144		$	7,234		$	39,729		$	187,645
Provision for Credit Losses	1,041			(1,329		)	(294		)	(1,617		)	(2,199		)
Net Interest Income After Provision for Credit Losses	84,497			56,473			7,528			41,346			189,844
Noninterest Income	39,343			11,799			28,761			9,346			89,249
Noninterest Expense	(98,013		)	(33,424		)	(27,763		)	(5,429		)	(164,629		)
Income Before Provision for Income Taxes	25,827			34,848			8,526			45,263			114,464
Provision for Income Taxes	(9,750		)	(11,740		)	(3,161		)	(9,731		)	(34,382		)
Net Income	$	16,077		$	23,108		$	5,365		$	35,532		$	80,082
Total Assets as of June 30, 2014 ¹	$	3,761,140		$	2,633,218		$	194,220		$	8,255,927		$	14,844,505


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)	2015			2015			2014			2014				2014
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	73,565		$	70,961		$	69,974		$	68,089			$	65,818
Income on Investment Securities
Available-for-Sale	10,273			10,198			10,732			10,286				10,697
Held-to-Maturity	22,832			24,407			24,966			26,067				26,938
Deposits	2			3			2			3				1
Funds Sold	268			259			192			176				168
Other	310			302			303			302				302
Total Interest Income	107,250			106,130			106,169			104,923				103,924
Interest Expense
Deposits	2,405			2,368			2,392			2,391				2,393
Securities Sold Under Agreements to Repurchase	6,440			6,371			6,520			6,523				6,465
Funds Purchased	3			3			3			3				4
Other Debt	620			618			622			627				650
Total Interest Expense	9,468			9,360			9,537			9,544				9,512
Net Interest Income	97,782			96,770			96,632			95,379				94,412
Provision for Credit Losses	—			—			—			(2,665		)		(2,199		)
Net Interest Income After Provision for Credit Losses	97,782			96,770			96,632			98,044				96,611
Noninterest Income
Trust and Asset Management	12,355			12,180			12,225			11,716				12,005
Mortgage Banking	3,469			1,693			2,116			1,646				1,804
Service Charges on Deposit Accounts	8,203			8,537			9,058			9,095				8,638
Fees, Exchange, and Other Service Charges	13,352			12,897			13,702			13,390				13,370
Investment Securities Gains, Net	86			10,231			1,966			1,858				2,079
Annuity and Insurance	1,885			2,044			1,664			2,348				1,930
Bank-Owned Life Insurance	2,088			1,734			1,874			1,644				1,519
Other	4,487			2,991			3,213			3,253				3,136
Total Noninterest Income	45,925			52,307			45,818			44,950				44,481
Noninterest Expense
Salaries and Benefits	47,610			49,780			45,520			45,530				45,081
Net Occupancy	8,605			9,333			9,291			9,334				9,254
Net Equipment	4,826			5,288			4,734			4,473				4,669
Data Processing	3,673			3,773			3,823			3,665				3,842
Professional Fees	2,265			2,334			3,086			1,835				2,613
FDIC Insurance	2,068			2,140			2,055			1,750				2,055
Other	14,527			14,267			12,731			14,443				13,568
Total Noninterest Expense	83,574			86,915			81,240			81,030				81,082
Income Before Provision for Income Taxes	60,133			62,162			61,210			61,964				60,010
Provision for Income Taxes	18,979			19,720			20,019			20,195				18,520
Net Income	$	41,154		$	42,442		$	41,191		$	41,769			$	41,490

Basic Earnings Per Share	$	0.95		$	0.98		$	0.95		$	0.95			$	0.94
Diluted Earnings Per Share	$	0.95		$	0.97		$	0.94		$	0.95			$	0.94

Balance Sheet Totals
Loans and Leases	$	7,428,438		$	7,178,628		$	6,897,589		$	6,606,350			$	6,426,353
Total Assets	15,248,043			15,139,179			14,787,208			14,510,166				14,844,505
Total Deposits	13,090,695			12,979,616			12,633,089			12,361,441				12,670,034
Total Shareholders' Equity	1,082,939			1,075,251			1,055,086			1,057,413				1,050,801

Performance Ratios
Return on Average Assets	1.10		%	1.15		%	1.12		%	1.15			%	1.17			%
Return on Average Shareholders' Equity	15.33			16.18			15.39			15.57				15.87
Efficiency Ratio ¹	58.16			58.30			57.03			57.74				58.38
Net Interest Margin ²	2.81			2.81			2.84			2.85				2.86


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, 2015				December 31, 2014						December 31, 2013
Hawaii Economic Trends
State General Fund Revenues ¹	$	2,489.5	6.3	%	$	5,535.7		1.6		%	$	5,450.6		3.7		%
General Excise and Use Tax Revenue ¹	$	1,308.3	2.1	%	$	2,979.8		2.5		%	$	2,907.6		2.2		%
Jobs ²	648.8				643.7						629.9

								June 30,			December 31,
(spot rates)								2015			2014			2013
Unemployment ³
Statewide, seasonally adjusted								4.0		%	4.0		%	4.7		%

Oahu								4.1			3.5			3.8
Island of Hawaii								5.5			4.7			5.9
Maui								4.4			3.8			4.7
Kauai								4.8			4.3			5.2

					June 30,			December 31,
(percentage change, except months of inventory)					2015			2014			2013			2012
Housing Trends (Single Family Oahu) ⁴
Median Home Price					2.3		%	3.8		%	4.8		%	7.8		%
Home Sales Volume (units)					3.4		%	(0.8	)	%	4.6		%	6.5		%
Months of Inventory					3.2			2.6			2.7			2.5

					Monthly Visitor Arrivals,						Percentage Change
(in thousands)					Not Seasonally Adjusted						from Previous Year
Tourism ⁵
May 31, 2015								709.7						9.3
April 30, 2015								677.8						2.3
March 31, 2015								780.1						7.0
February 28, 2015								661.7						2.3
January 31, 2015								678.9						(0.6	)
December 31, 2014								765.3						6.2
November 30, 2014								637.7						2.2
October 31, 2014								659.8						3.0
September 30, 2014								622.2						4.1
August 31, 2014								730.7						(2.4	)
July 31, 2014								772.1						1.9
June 30, 2014								725.1						1.2
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								720.8						(1.8	)
November 30, 2013								624.1						(4.2	)
October 31, 2013								640.3						(0.1	)
September 30, 2013								597.7						0.5
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, County jobs data not seasonally adjusted.
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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