Jan 30, 2013, 5:00am

Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.90 for the fourth quarter of 2012, down from $0.92 per share in the previous quarter, and up from $0.85 per share in the same quarter last year. Net income for the fourth quarter of 2012 was $40.3 million, compared to net income of $41.2 million in the third quarter of 2012 and $39.2 million in the same quarter last year.

Loan and lease balances were $5.9 billion at December 31, 2012, up 5.7 percent compared with December 31, 2011. Deposit growth remained strong during the quarter, increasing 8.8 percent to $11.5 billion at December 31, 2012. The allowance for loan and lease losses decreased by $2.1 million from the third quarter to $128.9 million at December 31, 2012 and represents 2.20 percent of outstanding loans and leases.

“We are very pleased with the continued stability and strength of our earnings," said Peter S. Ho, Chairman, President, and CEO. “During the quarter loan balances increased across most categories and deposits continued to grow. Credit quality remained solid, our balance sheet and capital ratios are strong, and we maintained our focus on disciplined expense management.”

The return on average assets for the fourth quarter of 2012 was 1.19 percent, compared with 1.22 percent in the previous quarter and 1.17 percent in the same quarter last year. The return on average equity for the fourth quarter of 2012 was 15.47 percent, compared with 16.02 percent in the previous quarter and 15.23 percent in the same quarter last year. The return on average assets for the full year of 2012 was 1.22 percent, unchanged from 2011. The return on average equity for the full year of 2012 was 16.23 percent, an increase from the return on average equity of 15.69 percent in 2011.

Financial Highlights

Net interest income, on a taxable-equivalent basis, for the fourth quarter of 2012 was $92.7 million, down $3.5 million from net interest income of $96.2 million in the third quarter of 2012 and down $4.5 million from net interest income of $97.2 million in the fourth quarter last year. Net interest income, on a taxable-equivalent basis, for the full year of 2012 was $386.7 million, a decrease of $5.6 million from net interest income of $392.3 million in 2011. Analyses of changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin was 2.87 percent for the fourth quarter of 2012, an 11 basis point decrease from the previous quarter and a 17 basis point decrease from the same quarter last year. The net interest margin for the full year of 2012 was 2.97 percent, a 16 basis point decrease from 3.13 percent in 2011. The reduction in the net interest margin was largely the result of lower interest rates which resulted in decreased yields on loans and investments.

During the fourth and third quarters of 2012, the Company did not record a provision for credit losses. Net loans and leases charged-off were $2.1 million in the fourth quarter of 2012 and $1.5 million in the third quarter of 2012. During the fourth quarter of 2011 the provision for credit losses was $2.2 million, or $4.8 million less than net charge-offs. The provision for credit losses for the full year of 2012 was $1.0 million compared with $12.7 million in 2011.

Noninterest income was $53.0 million for the fourth quarter of 2012, up $0.6 million or 1.2 percent compared with noninterest income of $52.4 million in the third quarter of 2012 and up $9.6 million or 22.1 percent compared with noninterest income of $43.4 million in the fourth quarter of 2011. The increase compared with the prior year quarter was largely due to strong mortgage banking revenue of $11.3 million during the fourth quarter of 2012 compared with $3.4 million in the fourth quarter last year. Noninterest income for the full year of 2012 was $200.3 million compared with noninterest income of $197.7 million in 2011.

Noninterest expense was $83.5 million in the fourth quarter of 2012, down $1.4 million or 1.7 percent from noninterest expense of $84.9 million in the third quarter of 2012, and down $0.9 million or 1.1 percent from noninterest expenses of $84.4 million in the fourth quarter of 2011. Noninterest expense in the fourth quarter of 2012 included total charges of $1.5 million related to the Company’s previously announced plans to close two branches in American Samoa. Noninterest expense in the third quarter of 2012 included an increase in profit sharing and incentive accruals of $1.0 million, $1.0 million related to the launch of a new consumer credit card product, and $1.0 million in separation expense. There were no significant noninterest expense items in the fourth quarter of 2011. Noninterest expense for the full year of 2012 was $334.3 million, down $13.9 million from noninterest expense of $348.2 million in 2011. Results for 2011 included a second quarter litigation settlement of $9.0 million.

The efficiency ratio for the fourth quarter of 2012 was 58.24 percent compared with 58.13 percent in the previous quarter and 60.42 percent in the same quarter last year. The efficiency ratio for the full year of 2012 was 57.88 percent compared with 59.23 percent during the full year of 2011.

The effective tax rate for the fourth quarter of 2012 was 32.67 percent compared with 32.55 percent in the previous quarter and 26.06 percent in the same quarter last year. The effective tax rate for the full year of 2012 was 31.46 percent compared with 29.49 percent for the full year of 2011. The effective tax rate for the fourth quarter of 2011 was favorably impacted by the release of tax reserves determined during the quarter.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury & Other. Results are determined based on the Company’s internal financial management reporting process and organizational structure. Selected financial information for the business segments is included in Tables 13a and 13b.

Asset Quality

The Company’s overall asset quality in the fourth quarter of 2012 reflects the improving Hawaii economy. Total non-performing assets decreased to $37.1 million at December 31, 2012 compared with $40.3 million at September 30, 2012 and $40.8 million at December 31, 2011. As a percentage of total loans and leases, including foreclosed real estate; non-performing assets were 0.63 percent at the end of the fourth quarter of 2012, down from 0.70 percent as of the end of the third quarter and 0.74 percent at the end of the fourth quarter last year.

Accruing loans and leases past due 90 days or more were $10.4 million at December 31, 2012, up from $7.5 million at September 30, 2012 and $9.2 million at December 30, 2011. The increase in accruing loan and leases past due compared with the prior quarter is in residential mortgages and are three loans that are expected to return to current status. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $31.8 million at December 31, 2012, up slightly from $31.4 million at September 30, 2012, and down from $33.7 million at December 31, 2011. Restructured loans are primarily comprised of residential mortgage loans with lowered monthly payments to accommodate the borrowers’ financial needs for a period of time. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net charge-offs during the fourth quarter of 2012 were $2.1 million or 0.15 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $5.4 million during the quarter were partially offset by recoveries of $3.3 million. Net charge-offs during the third quarter of 2012 were $1.5 million or 0.10 percent annualized, and were comprised of charge-offs of $5.0 million and recoveries of $3.5 million. Net charge-offs during the fourth quarter of 2011 were $7.0 million, or 0.51 percent annualized, and were comprised of charge-offs of $9.6 million and recoveries of $2.6 million. Net charge-offs for the full year of 2012 were $10.7 million, or 0.19 percent of total average loans and leases, down from $21.4 million, or 0.40 percent of total average loans and leases in 2011.

The allowance for loan and lease losses was $128.9 million at December 31, 2012, down $2.1 million from the allowance for loan and lease losses of $131.0 million at September 30, 2012 and down $9.7 million from the allowance for loan and lease losses of $138.6 million at December 31, 2011. The ratio of the allowance for loan and lease losses to total loans and leases was 2.20 percent at December 31, 2012, a decrease of 7 basis points from the previous quarter and 30 basis points from the same quarter last year. The reserve for unfunded commitments at December 31, 2012 was unchanged from September 30, 2012 and remained at $5.4 million. Details of loan and lease charge-offs, recoveries, and the components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets increased to $13.73 billion at December 31, 2012, up $345.9 million from total assets of $13.38 billion at September 30, 2012, and down $118.0 million from total assets of $13.85 billion at December 31, 2011. Average total assets were $13.52 billion during the fourth quarter of 2012, up $25.7 million from average total assets of $13.49 billion during the third quarter of 2012, and up $158.9 million from average total assets of $13.36 billion during the fourth quarter of 2011.

Total loans and leases grew to $5.85 billion at December 31, 2012, up $72.2 million or 1.2 percent from total loans and leases of $5.78 billion at the end of the previous quarter, and up $316.2 million or 5.7 percent from total loans and leases of $5.54 billion at December 31, 2011. Average total loans and leases were $5.80 billion during the fourth quarter of 2012, up from $5.72 billion during the previous quarter, and up from $5.42 billion during the same quarter last year. Loan and lease portfolio balances, including the higher risk loans outstanding, are summarized in Table 10.

Deposit generation continued to remain strong during the fourth quarter of 2012, increasing to $11.53 billion at December 31, 2012, up $308.9 million or 2.8 percent from total deposits of $11.22 billion at September 30, 2012, and up $936.9 million or 8.8 percent from total deposits of $10.59 billion at December 31, 2011. Securities sold under agreements to repurchase were $758.9 million at December 31, 2012, down $59.1 million from $818.1 million at September 30, 2012, and down $1.17 billion from $1.93 billion at December 31, 2011. Average total deposits were $11.38 billion in the fourth quarter of 2012, higher than average deposits of $11.30 billion during the previous quarter, and up from average deposits of $10.16 billion during the same quarter last year. Deposit balances are summarized in Tables 7a, 7b, and 10.

Long-term debt was $128.1 million at December 31, 2012, up from $28.1 million at September 30, 2012 and $30.7 million at December 31, 2011. The increase in long-term debt was primarily for asset/liability management purposes.

As a result of the strong deposit growth, which exceeded loan growth during the fourth quarter, the investment portfolio increased to $6.96 billion at December 31, 2012, compared to $6.60 billion at September 30, 2012, and was down slightly from $7.11 billion at December 31, 2011. The investment portfolio remains largely comprised of securities issued by U. S. government agencies.

During the fourth quarter of 2012, the Company repurchased 339.0 thousand shares of common stock at a total cost of $14.9 million under its share repurchase program. The average cost was $44.06 per share repurchased. From January 2 through January 25, 2013, the Company repurchased an additional 34.0 thousand shares of common stock at an average cost of $46.60 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through December 31, 2012, the Company has repurchased 50.3 million shares and returned over $1.8 billion to shareholders at an average cost of $36.34 per share. Remaining buyback authority under the share repurchase program was $67.9 million at January 25, 2013.

Total shareholders’ equity was $1.02 billion at December 31, 2012, down slightly from September 30, 2012, and up from $1.00 billion at December 31, 2011. The ratio of tangible common equity to risk-weighted assets was 17.24 percent at December 31, 2012 compared with 17.43 percent at September 30, 2012 and 17.93 percent at December 31, 2011. The Tier 1 leverage ratio at December 31, 2012 was 6.83 percent, up from 6.78 percent at September 30, 2012 and 6.73 percent at December 31, 2011.

The Company’s Board of Directors declared a quarterly cash dividend of $0.45 per share on the Company’s outstanding shares. The dividend will be payable on March 14, 2013 to shareholders of record at the close of business on February 28, 2013.

Hawaii Economy

Hawaii’s economy continued to improve during the fourth quarter of 2012 primarily due to a strong visitor industry. A record 8.0 million total visitors arrived in Hawaii during 2012, up 9.6 percent compared with 2011, and exceeding the previous high of 7.6 million visitors during 2006. Total visitor spending reached a record high of $14.3 billion in 2012, up 18.7 percent compared with 2011, and was largely due to strong spending by international visitors. The statewide seasonally-adjusted unemployment rate continued to decline during the fourth quarter of 2012 to 5.2% in December compared with 7.8% nationally. Median sales prices for single-family homes and condominiums as well as closed sales on Oahu increased during 2012 compared with the prior year. Months of inventory at December 31, 2012 for single-family homes on Oahu declined to 2.5 and 3.0 for condominiums. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its 2012 financial results today at 8:00 a.m. Hawaii Time (1:00 p.m. Eastern Time). The call will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation’s web site, www.boh.com. The conference call number for participants in the United States is 800-299-9086. International participants should call 617-786-2903. Use the pass code “Bank of Hawaii” to access the call. A replay of the conference call will be available for one week beginning Wednesday, January 30, 2013 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the number 46643910 when prompted. A replay will also be available via the Investor Relations link of the Company’s web site.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2011, which was filed with the U.S. Securities and Exchange Commission. We do not promise to update forward-looking statements to reflect later events or circumstances

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

Bank of Hawaii Corporation and Subsidiaries
Financial Highlights		Table 1a
		Three Months Ended									Year Ended
		December 31,			September 30,			December 31,			December 31,
(dollars in thousands, except per share amounts)		2012			2012			2011			2012			2011
For the Period:
Operating Results
Net Interest Income		$	90,310		$	93,632		$	96,246		$	377,271		$	390,208
Provision for Credit Losses			-			-			2,219			979			12,690
Total Noninterest Income			52,982			52,374			43,407			200,286			197,655
Total Noninterest Expense			83,456			84,878			84,382			334,288			348,193
Net Income			40,287			41,232			39,229			166,076			160,043
Basic Earnings Per Share			0.90			0.92			0.85			3.68			3.40
Diluted Earnings Per Share			0.90			0.92			0.85			3.67			3.39
Dividends Declared Per Share			0.45			0.45			0.45			1.80			1.80
Performance Ratios
Return on Average Assets			1.19	%		1.22	%		1.17	%		1.22	%		1.22	%
Return on Average Shareholders' Equity			15.47			16.02			15.23			16.23			15.69
Efficiency Ratio 1			58.24			58.13			60.42			57.88			59.23
Net Interest Margin 2			2.87			2.98			3.04			2.97			3.13
Dividend Payout Ratio 3			50.00			48.91			52.94			48.91			52.94
Average Shareholders' Equity to Average Assets			7.67			7.59			7.65			7.52			7.78
Average Balances
Average Loans and Leases		$	5,798,057		$	5,716,421		$	5,420,352		$	5,680,279		$	5,349,938
Average Assets			13,516,519			13,490,835			13,357,646			13,609,188			13,105,029
Average Deposits			11,376,875			11,301,668			10,160,392			10,935,016			9,924,697
Average Shareholders' Equity			1,036,223			1,023,804			1,022,012			1,023,256			1,020,065
Per Share of Common Stock
Book Value		$	22.83		$	22.77		$	21.82		$	22.83		$	21.82
Market Price
Closing			44.05			45.62			44.49			44.05			44.49
High			46.38			48.92			45.13			49.99			49.26
Low			41.41			45.29			34.50			41.41			34.50
								December 31,			September 30,			December 31,
								2012			2012			2011
As of Period End:
Balance Sheet Totals
Loans and Leases								$	5,854,521		$	5,782,304		$	5,538,304
Total Assets									13,728,372			13,382,425			13,846,391
Total Deposits									11,529,482			11,220,547			10,592,623
Long-Term Debt									128,055			28,065			30,696
Total Shareholders' Equity									1,021,665			1,024,562			1,002,667
Asset Quality
Allowance for Loan and Lease Losses								$	128,857		$	130,971		$	138,606
Non-Performing Assets									37,083			40,284			40,790
Financial Ratios
Allowance to Loans and Leases Outstanding									2.20	%		2.27	%		2.50	%
Tier 1 Capital Ratio									16.13			16.12			16.68
Total Capital Ratio									17.39			17.39			17.95
Tier 1 Leverage Ratio									6.83			6.78			6.73
Total Shareholders' Equity to Total Assets									7.44			7.66			7.24
Tangible Common Equity to Tangible Assets 4									7.23			7.44			7.03
Tangible Common Equity to Risk-Weighted Assets 4									17.24			17.43			17.93
Non-Financial Data
Full-Time Equivalent Employees									2,276			2,304			2,370
Branches and Offices									76			77			81
ATMs									494			495			506
1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
2 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
3 Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.
4 Tangible common equity, a non-GAAP financial measure, is defined by the Company as shareholders' equity minus goodwill and intangible assets. Intangible assets are included as a component of other assets in the Consolidated Statements of Condition.

Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures		Table 1b
		December 31,				September 30,				December 31,
(dollars in thousands)		2012				2012				2011
Total Shareholders' Equity		$	1,021,665			$	1,024,562			$	1,002,667
Less:Goodwill			31,517				31,517				31,517
Intangible Assets			33				46				83
Tangible Common Equity		$	990,115			$	992,999			$	971,067
Total Assets		$	13,728,372			$	13,382,425			$	13,846,391
Less:Goodwill			31,517				31,517				31,517
Intangible Assets			33				46				83
Tangible Assets		$	13,696,822			$	13,350,862			$	13,814,791
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements		$	5,744,722			$	5,697,581			$	5,414,481
Total Shareholders' Equity to Total Assets			7.44	%			7.66	%			7.24	%
Tangible Common Equity to Tangible Assets (Non-GAAP)			7.23	%			7.44	%			7.03	%
Tier 1 Capital Ratio			16.13	%			16.12	%			16.68	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)			17.24	%			17.43	%			17.93	%

Bank of Hawaii Corporation and Subsidiaries
Net Significant Income (Expense) Items		Table 2
		Three Months Ended							Year Ended
		December 31,				September 30,			December 31,			December 31,
(dollars in thousands)		2012				2012			2011			2012				2011
Investment Securities Gains, Net		$	-			$	-		$	-		$	-			$	6,366
Gain on Mutual Fund Sale			-				-			-			-				1,956
Gains (Losses) on Disposal of Leased Equipment			-				-			-			2,473				-
Decrease in Allowance for Loan and Lease Losses			2,114				1,472			4,804			9,749				8,752
Planned Branch Closures in American Samoa			(1,465	)			-			-			(1,465	)			-
Bank of Hawaii Charitable Foundation			-				-			-			-				(2,000	)
PC Refresh			-				-			-			(1,163	)			-
Settlement Related to Overdraft Claims			-				-			-			-				(9,000	)
Significant Income (Expense) Items Before the Provision (Benefit) for Income Taxes			649				1,472			4,804			9,594				6,074
Income Taxes Impact Related to Lease Transactions			-				-			-			(3,083	)			-
Income Tax Impact			227				515			1,681			2,492				2,126
Net Significant Income (Expense) Items		$	422			$	957		$	3,123		$	10,185			$	3,948

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income		Table 3
		Three Months Ended									Year Ended
		December 31,			September 30,			December 31,			December 31,
(dollars in thousands, except per share amounts)		2012			2012			2011			2012				2011
Interest Income
Interest and Fees on Loans and Leases		$	64,627		$	64,668		$	64,760		$	257,896			$	262,239
Income on Investment Securities
Available-for-Sale			15,349			15,922			19,107			65,972				103,363
Held-to-Maturity			20,253			23,232			23,608			94,952				72,138
Deposits			3			3			2			9				8
Funds Sold			180			105			120			533				828
Other			283			283			280			1,127				1,117
Total Interest Income			100,695			104,213			107,877			420,489				439,693
Interest Expense
Deposits			2,753			2,931			3,736			12,376				18,321
Securities Sold Under Agreements to Repurchase			7,158			7,185			7,392			28,897				29,171
Funds Purchased			4			7			5			21				20
Long-Term Debt			470			458			498			1,924				1,973
Total Interest Expense			10,385			10,581			11,631			43,218				49,485
Net Interest Income			90,310			93,632			96,246			377,271				390,208
Provision for Credit Losses			-			-			2,219			979				12,690
Net Interest Income After Provision for Credit Losses			90,310			93,632			94,027			376,292				377,518
Noninterest Income
Trust and Asset Management			12,066			11,050			11,025			45,229				45,046
Mortgage Banking			11,268			11,745			3,401			35,644				14,664
Service Charges on Deposit Accounts			9,459			9,346			9,606			37,621				38,733
Fees, Exchange, and Other Service Charges			12,333			11,907			12,401			48,965				60,227
Investment Securities Gains (Losses), Net			-			13			282			(77	)			6,366
Insurance			2,550			2,326			2,312			9,553				10,957
Other			5,306			5,987			4,380			23,351				21,662
Total Noninterest Income			52,982			52,374			43,407			200,286				197,655
Noninterest Expense
Salaries and Benefits			46,116			47,231			44,927			184,408				182,816
Net Occupancy			11,867			10,524			11,253			42,965				43,169
Net Equipment			4,705			4,523			4,748			19,723				18,849
Professional Fees			2,611			2,494			1,926			9,623				8,623
FDIC Insurance			1,892			1,822			2,027			7,873				9,346
Other			16,265			18,284			19,501			69,696				85,390
Total Noninterest Expense			83,456			84,878			84,382			334,288				348,193
Income Before Provision for Income Taxes			59,836			61,128			53,052			242,290				226,980
Provision for Income Taxes			19,549			19,896			13,823			76,214				66,937
Net Income		$	40,287		$	41,232		$	39,229		$	166,076			$	160,043
Basic Earnings Per Share		$	0.90		$	0.92		$	0.85		$	3.68			$	3.40
Diluted Earnings Per Share		$	0.90		$	0.92		$	0.85		$	3.67			$	3.39
Dividends Declared Per Share		$	0.45		$	0.45		$	0.45		$	1.80			$	1.80
Basic Weighted Average Shares			44,623,823			44,913,348			46,195,147			45,115,441				47,064,925
Diluted Weighted Average Shares			44,740,109			45,050,638			46,324,734			45,249,300				47,224,981

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income													Table 4
		Three Months Ended											Year Ended
		December 31,				September 30,			December 31,				December 31,
(dollars in thousands)		2012				2012			2011				2012				2011
Net Income		$	40,287			$	41,232		$	39,229			$	166,076			$	160,043
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities			(9,858	)			9,770			(1,965	)			(3,155	)			16,411
Defined Benefit Plans			(3,358	)			152			(9,526	)			(2,900	)			(8,113	)
Other Comprehensive Income (Loss)			(13,216	)			9,922			(11,491	)			(6,055	)			8,298
Comprehensive Income		$	27,071			$	51,154		$	27,738			$	160,021			$	168,341

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
(dollars in thousands)		December 31, 2012				September 30, 2012				December 31, 2011
Assets
Interest-Bearing Deposits		$	3,393			$	4,673			$	3,036
Funds Sold			185,682				251,664				512,384
Investment Securities
Available-for-Sale			3,367,557				3,124,209				3,451,885
Held to Maturity (Fair Value of $3,687,676; $3,587,997; and $3,754,206)			3,595,065				3,475,259				3,657,796
Loans Held for Sale			21,374				25,971				18,957
Loans and Leases			5,854,521				5,782,304				5,538,304
Allowance for Loan and Lease Losses			(128,857	)			(130,971	)			(138,606	)
Net Loans and Leases			5,725,664				5,651,333				5,399,698
Total Earning Assets			12,898,735				12,533,109				13,043,756
Cash and Noninterest-Bearing Deposits			163,786				153,599				154,489
Premises and Equipment			105,005				107,144				103,550
Customers' Acceptances			173				242				476
Accrued Interest Receivable			43,077				47,192				43,510
Foreclosed Real Estate			3,887				3,067				3,042
Mortgage Servicing Rights			25,240				23,980				24,279
Goodwill			31,517				31,517				31,517
Other Assets			456,952				482,575				441,772
Total Assets		$	13,728,372			$	13,382,425			$	13,846,391
Liabilities
Deposits
Noninterest-Bearing Demand		$	3,367,185			$	2,985,561			$	2,850,923
Interest-Bearing Demand			2,163,473				2,034,319				2,005,983
Savings			4,399,316				4,480,733				4,398,638
Time			1,599,508				1,719,934				1,337,079
Total Deposits			11,529,482				11,220,547				10,592,623
Funds Purchased			11,296				10,942				10,791
Securities Sold Under Agreements to Repurchase			758,947				818,080				1,925,998
Long-Term Debt			128,055				28,065				30,696
Banker's Acceptances			173				242				476
Retirement Benefits Payable			47,658				41,872				46,949
Accrued Interest Payable			4,776				5,997				5,330
Taxes Payable and Deferred Taxes			88,014				94,369				95,840
Other Liabilities			138,306				137,749				135,021
Total Liabilities			12,706,707				12,357,863				12,843,724
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: December 31, 2012 - 57,319,352 / 44,754,835; September 30, 2012 - 57,315,093 / 45,004,813; and December 31, 2011 - 57,134,470 / 45,947,116)			571				571				571
Capital Surplus			515,619				513,758				507,558
Accumulated Other Comprehensive Income			29,208				42,424				35,263
Retained Earnings			1,084,477				1,065,245				1,003,938
Treasury Stock, at Cost (Shares: December 31, 2012 - 12,564,517; September 30, 2012 - 12,310,280; and December 31, 2011 - 11,187,354)			(608,210	)			(597,436	)			(544,663	)
Total Shareholders' Equity			1,021,665				1,024,562				1,002,667
Total Liabilities and Shareholders' Equity		$	13,728,372			$	13,382,425			$	13,846,391

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																			Table 6
											Accum.
											Other
											Compre-
		Common Shares			Common			Capital			hensive				Retained				Treasury
(dollars in thousands)		Outstanding			Stock			Surplus			Income				Earnings				Stock				Total
Balance as of December 31, 2010		48,097,672			$	570		$	500,888		$	26,965			$	932,629			$	(449,919	)		$	1,011,133
Net Income		-				-			-			-				160,043				-				160,043
Other Comprehensive Income		-				-			-			8,298				-				-				8,298
Share-Based Compensation		-				-			6,216			-				-				-				6,216
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits		389,470				1			454			-				(3,843	)			16,800				13,412
Common Stock Repurchased		(2,540,026	)			-			-			-				-				(111,544	)			(111,544	)
Cash Dividends Paid ($1.80 per share)		-				-			-			-				(84,891	)			-				(84,891	)
Balance as of December 31, 2011		45,947,116			$	571		$	507,558		$	35,263			$	1,003,938			$	(544,663	)		$	1,002,667
Net Income		-				-			-			-				166,076				-				166,076
Other Comprehensive Loss		-				-			-			(6,055	)			-				-				(6,055	)
Share-Based Compensation		-				-			7,537			-				-				-				7,537
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits		565,956				-			524			-				(3,892	)			17,897				14,529
Common Stock Repurchased		(1,758,237	)			-			-			-				-				(81,444	)			(81,444	)
Cash Dividends Paid ($1.80 per share)		-				-			-			-				(81,645	)			-				(81,645	)
Balance as of December 31, 2012		44,754,835			$	571		$	515,619		$	29,208			$	1,084,477			$	(608,210	)		$	1,021,665

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
		December 31, 2012									September 30, 2012									December 31, 2011
		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		$	4.4		$	-		0.29	%		$	4.0		$	-		0.33	%		$	3.9		$	-		0.23	%
Funds Sold			332.1			0.2		0.21				221.5			0.1		0.19				239.0			0.1		0.20
Investment Securities
Available-for-Sale			3,277.2			17.6		2.15				3,247.8			18.3		2.26				3,763.7			19.9		2.12
Held-to-Maturity			3,406.3			20.3		2.38				3,617.3			23.2		2.57				3,259.8			23.6		2.90
Loans Held for Sale			18.9			0.2		4.36				15.8			0.2		4.32				14.7			0.2		4.73
Loans and Leases 1
Commercial and Industrial			811.3			7.8		3.84				797.2			7.7		3.86				798.3			8.0		3.99
Commercial Mortgage			1,063.6			11.2		4.18				993.2			10.8		4.32				929.0			10.9		4.66
Construction			104.5			1.2		4.77				100.1			1.3		4.97				85.7			1.1		4.84
Commercial Lease Financing			275.9			1.7		2.46				278.5			1.7		2.42				311.0			2.1		2.68
Residential Mortgage			2,369.5			27.5		4.64				2,391.8			28.1		4.70				2,163.1			27.3		5.05
Home Equity			771.3			8.1		4.18				770.2			8.3		4.28				778.1			9.0		4.57
Automobile			205.6			3.0		5.73				194.9			2.9		5.90				190.7			3.1		6.40
Other 2			196.4			4.0		8.15				190.5			3.9		8.09				164.5			3.2		7.76
Total Loans and Leases			5,798.1			64.5		4.44				5,716.4			64.7		4.51				5,420.4			64.7		4.75
Other			79.5			0.3		1.43				80.1			0.3		1.41				79.9			0.3		1.40
Total Earning Assets 3			12,916.5			103.1		3.19				12,902.9			106.8		3.30				12,781.4			108.8		3.40
Cash and Noninterest-Bearing Deposits			144.8									134.9									142.2
Other Assets			455.2									453.0									434.0
Total Assets		$	13,516.5								$	13,490.8								$	13,357.6
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand			2,011.2			0.1		0.03				1,968.8			0.1		0.03				1,799.9			0.1		0.03
Savings			4,451.4			1.0		0.09				4,456.2			1.0		0.09				4,447.8			1.4		0.13
Time			1,755.6			1.6		0.36				1,823.2			1.8		0.38				1,145.4			2.2		0.76
Total Interest-Bearing Deposits			8,218.2			2.7		0.13				8,248.2			2.9		0.14				7,393.1			3.7		0.20
Short-Term Borrowings			11.0			-		0.14				18.5			-		0.15				20.4			-		0.08
Securities Sold Under Agreements to Repurchase			776.8			7.2		3.61				853.0			7.2		3.30				1,848.9			7.4		1.57
Long-Term Debt			36.7			0.5		5.12				28.0			0.5		6.52				30.7			0.5		6.49
Total Interest-Bearing Liabilities			9,042.7			10.4		0.45				9,147.7			10.6		0.46				9,293.1			11.6		0.49
Net Interest Income					$	92.7								$	96.2								$	97.2
Interest Rate Spread								2.74	%								2.84	%								2.91	%
Net Interest Margin								2.87	%								2.98	%								3.04	%
Noninterest-Bearing Demand Deposits			3,158.7									3,053.5									2,767.3
Other Liabilities			278.9									265.8									275.2
Shareholders' Equity			1,036.2									1,023.8									1,022.0
Total Liabilities and Shareholders' Equity		$	13,516.5								$	13,490.8								$	13,357.6
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 $2,394,000, $2,529,000 and $938,000 for the three months ended December 31, 2012, September 30, 2012, and December 31, 2011, respectively.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis														Table 7b
		Year Ended									Year Ended
		December 31, 2012									December 31, 2011
		Average			Income/			Yield/			Average			Income/			Yield/
(dollars in millions)		Balance			Expense			Rate			Balance			Expense			Rate
Earning Assets
Interest-Bearing Deposits		$	3.7		$	-		0.26	%		$	4.2		$	-		0.19	%
Funds Sold			263.5			0.5		0.20				380.2			0.8		0.22
Investment Securities
Available-for-Sale			3,346.3			75.0		2.24				4,439.8			105.4		2.37
Held-to-Maturity			3,636.7			95.0		2.61				2,279.6			72.2		3.16
Loans Held for Sale			14.7			0.6		4.29				11.0			0.5		4.54
Loans and Leases 1
Commercial and Industrial			800.2			31.3		3.91				790.6			31.8		4.02
Commercial Mortgage			988.2			42.9		4.34				887.1			42.8		4.82
Construction			101.9			5.1		5.04				80.1			4.0		5.06
Commercial Lease Financing			283.3			6.8		2.39				322.1			8.7		2.71
Residential Mortgage			2,349.6			111.3		4.74				2,126.9			111.5		5.24
Home Equity			773.2			33.4		4.31				784.9			37.4		4.76
Automobile			196.8			11.7		5.96				194.4			13.2		6.78
Other 2			187.1			15.2		8.11				163.8			12.4		7.57
Total Loans and Leases			5,680.3			257.7		4.54				5,349.9			261.8		4.89
Other			79.9			1.1		1.41				79.9			1.1		1.40
Total Earning Assets 3			13,025.1			429.9		3.30				12,544.6			441.8		3.52
Cash and Noninterest-Bearing Deposits			137.2									135.3
Other Assets			446.9									425.1
Total Assets		$	13,609.2								$	13,105.0
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand			1,938.6			0.5		0.03				1,786.7			0.7		0.04
Savings			4,447.8			4.5		0.10				4,501.0			7.3		0.16
Time			1,524.6			7.4		0.48				1,067.8			10.3		0.96
Total Interest-Bearing Deposits			7,911.0			12.4		0.16				7,355.5			18.3		0.25
Short-Term Borrowings			15.1			-		0.14				18.2			-		0.11
Securities Sold Under Agreements to Repurchase			1,335.7			28.9		2.16				1,845.8			29.2		1.58
Long-Term Debt			31.5			1.9		6.10				31.6			2.0		6.23
Total Interest-Bearing Liabilities			9,293.3			43.2		0.47				9,251.1			49.5		0.53
Net Interest Income					$	386.7								$	392.3
Interest Rate Spread								2.83	%								2.99	%
Net Interest Margin								2.97	%								3.13	%
Noninterest-Bearing Demand Deposits			3,024.0									2,569.2
Other Liabilities			268.6									264.6
Shareholders' Equity			1,023.3									1,020.1
Total Liabilities and Shareholders' Equity		$	13,609.2								$	13,105.0
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 $9,473,000 and $2,080,000 for the year ended December 31, 2012 and 2011, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis										Table 8a
		Three Months Ended December 31, 2012
		Compared to September 30, 2012
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	0.1			$	-			$	0.1
Investment Securities
Available-for-Sale			0.2				(0.9	)			(0.7	)
Held-to-Maturity			(1.3	)			(1.6	)			(2.9	)
Loans and Leases
Commercial and Industrial			0.1				-				0.1
Commercial Mortgage			0.7				(0.3	)			0.4
Construction			0.1				(0.2	)			(0.1	)
Residential Mortgage			(0.3	)			(0.3	)			(0.6	)
Home Equity			-				(0.2	)			(0.2	)
Automobile			0.2				(0.1	)			0.1
Other 2			0.1				-				0.1
Total Loans and Leases			0.9				(1.1	)			(0.2	)
Total Change in Interest Income			(0.1	)			(3.6	)			(3.7	)
Change in Interest Expense:
Interest-Bearing Deposits
Time			(0.1	)			(0.1	)			(0.2	)
Total Interest-Bearing Deposits			(0.1	)			(0.1	)			(0.2	)
Securities Sold Under Agreements to Repurchase			(0.6	)			0.6				-
Long-Term Debt			0.1				(0.1	)			-
Total Change in Interest Expense			(0.6	)			0.4				(0.2	)
Change in Net Interest Income		$	0.5			$	(4.0	)		$	(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 8b
		Three Months Ended December 31, 2012
		Compared to December 31, 2011
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	0.1			$	-			$	0.1
Investment Securities
Available-for-Sale			(2.6	)			0.3				(2.3	)
Held-to-Maturity			1.1				(4.4	)			(3.3	)
Loans and Leases
Commercial and Industrial			0.1				(0.3	)			(0.2	)
Commercial Mortgage			1.5				(1.2	)			0.3
Construction			0.2				(0.1	)			0.1
Commercial Lease Financing			(0.2	)			(0.2	)			(0.4	)
Residential Mortgage			2.5				(2.3	)			0.2
Home Equity			(0.1	)			(0.8	)			(0.9	)
Automobile			0.2				(0.3	)			(0.1	)
Other 2			0.6				0.2				0.8
Total Loans and Leases			4.8				(5.0	)			(0.2	)
Total Change in Interest Income			3.4				(9.1	)			(5.7	)
Change in Interest Expense:
Interest-Bearing Deposits
Savings			-				(0.4	)			(0.4	)
Time			0.9				(1.5	)			(0.6	)
Total Interest-Bearing Deposits			0.9				(1.9	)			(1.0	)
Securities Sold Under Agreements to Repurchase			(6.0	)			5.8				(0.2	)
Long-Term Debt			0.1				(0.1	)			-
Total Change in Interest Expense			(5.0	)			3.8				(1.2	)
Change in Net Interest Income		$	8.4			$	(12.9	)		$	(4.5	)
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
		Year Ended December 31, 2012
		Compared to December 31, 2011
(dollars in millions)		Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold		$	(0.2	)		$	(0.1	)		$	(0.3	)
Investment Securities
Available-for-Sale			(24.8	)			(5.6	)			(30.4	)
Held-to-Maturity			37.1				(14.3	)			22.8
Loans Held for Sale			0.1				-				0.1
Loans and Leases
Commercial and Industrial			0.4				(0.9	)			(0.5	)
Commercial Mortgage			4.6				(4.5	)			0.1
Construction			1.1				-				1.1
Commercial Lease Financing			(1.0	)			(0.9	)			(1.9	)
Residential Mortgage			11.1				(11.3	)			(0.2	)
Home Equity			(0.5	)			(3.5	)			(4.0	)
Automobile			0.1				(1.6	)			(1.5	)
Other 2			1.9				0.9				2.8
Total Loans and Leases			17.7				(21.8	)			(4.1	)
Total Change in Interest Income			29.9				(41.8	)			(11.9	)
Change in Interest Expense:
Interest-Bearing Deposits
Demand			0.1				(0.3	)			(0.2	)
Savings			(0.1	)			(2.7	)			(2.8	)
Time			3.4				(6.3	)			(2.9	)
Total Interest-Bearing Deposits			3.4				(9.3	)			(5.9	)
Securities Sold Under Agreements to Repurchase			(9.4	)			9.1				(0.3	)
Long-Term Debt			-				(0.1	)			(0.1	)
Total Change in Interest Expense			(6.0	)			(0.3	)			(6.3	)
Change in Net Interest Income		$	35.9			$	(41.5	)		$	(5.6	)
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									Year Ended
		December 31,			September 30,			December 31,			December 31,
(dollars in thousands)		2012			2012			2011			2012			2011
Salaries		$	29,378		$	29,312		$	28,330		$	115,208		$	115,512
Incentive Compensation			4,248			4,492			3,881			16,926			16,367
Share-Based Compensation and Cash Grants for the Purchase of Company Stock			1,701			1,817			1,819			6,961			5,720
Commission Expense			1,953			1,750			1,701			6,993			6,489
Retirement and Other Benefits			3,821			4,322			4,429			16,014			16,829
Payroll Taxes			2,071			2,267			2,030			10,593			10,645
Medical, Dental, and Life Insurance			2,388			2,255			2,322			9,319			9,039
Separation Expense			556			1,016			415			2,394			2,215
Total Salaries and Benefits		$	46,116		$	47,231		$	44,927		$	184,408		$	182,816

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances														Table 10
		December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)		2012			2012			2012			2012			2011
Commercial
Commercial and Industrial		$	829,512		$	808,621		$	781,688		$	788,718		$	817,170
Commercial Mortgage			1,097,425			1,039,556			961,984			948,196			938,250
Construction			113,987			101,818			97,668			110,184			98,669
Lease Financing			274,969			277,328			281,020			285,860			311,928
Total Commercial			2,315,893			2,227,323			2,122,360			2,132,958			2,166,017
Consumer
Residential Mortgage			2,349,916			2,392,871			2,401,331			2,319,485			2,215,892
Home Equity			770,376			770,284			766,839			773,643			780,691
Automobile			209,832			200,788			194,339			193,851			192,506
Other 1			208,504			191,038			186,614			178,995			183,198
Total Consumer			3,538,628			3,554,981			3,549,123			3,465,974			3,372,287
Total Loans and Leases		$	5,854,521		$	5,782,304		$	5,671,483		$	5,598,932		$	5,538,304
Higher Risk Loans and Leases Outstanding
		December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)		2012			2012			2012			2012			2011
Residential Land Loans 2		$	14,984		$	16,513		$	16,703		$	17,602		$	18,163
Home Equity Loans 3			19,914			19,774			22,029			21,359			21,413
Air Transportation 4			27,782			27,765			27,633			27,548			36,144
Total Higher Risk Loans		$	62,680		$	64,052		$	66,365		$	66,509		$	75,720
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
		December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)		2012			2012			2012			2012			2011
Consumer		$	5,537,624		$	5,369,724		$	5,360,325		$	5,377,804		$	5,241,827
Commercial			4,576,410			4,394,745			4,403,095			4,307,931			4,320,712
Public and Other			1,415,448			1,456,078			1,784,573			935,435			1,030,084
Total Deposits		$	11,529,482		$	11,220,547		$	11,547,993		$	10,621,170		$	10,592,623

Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More																		Table 11
		December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands)		2012				2012				2012				2012				2011
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial		$	5,534			$	5,635			$	5,778			$	5,852			$	6,243
Commercial Mortgage			3,030				2,671				2,737				2,113				2,140
Construction			833				953				1,182				1,482				2,080
Lease Financing			-				-				-				4				5
Total Commercial			9,397				9,259				9,697				9,451				10,468
Consumer
Residential Mortgage			21,725				25,456				26,803				26,356				25,256
Home Equity			2,074				2,502				2,425				2,069				2,024
Total Consumer			23,799				27,958				29,228				28,425				27,280
Total Non-Accrual Loans and Leases			33,196				37,217				38,925				37,876				37,748
Foreclosed Real Estate			3,887				3,067				2,569				3,530				3,042
Total Non-Performing Assets		$	37,083			$	40,284			$	41,494			$	41,406			$	40,790
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial		$	27			$	-			$	1			$	2			$	1
Total Commercial			27				-				1				2				1
Consumer
Residential Mortgage			6,908				3,988				4,229				6,590				6,422
Home Equity			2,701				2,755				2,445				2,829				2,194
Automobile			186				154				98				124				170
Other 1			587				578				395				543				435
Total Consumer			10,382				7,475				7,167				10,086				9,221
Total Accruing Loans and Leases Past Due 90 Days or More		$	10,409			$	7,475			$	7,168			$	10,088			$	9,222
Restructured Loans on Accrual Status and Not Past Due 90 Days or More		$	31,844			$	31,426			$	31,124			$	29,539			$	33,703
Total Loans and Leases		$	5,854,521			$	5,782,304			$	5,671,483			$	5,598,932			$	5,538,304
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.57	%			0.64	%			0.69	%			0.68	%			0.68	%
Ratio of Non-Performing Assets to Total Loans and Leases, and Foreclosed Real Estate			0.63	%			0.70	%			0.73	%			0.74	%			0.74	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases, and Commercial Foreclosed Real Estate			0.45	%			0.46	%			0.51	%			0.53	%			0.56	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate			0.75	%			0.84	%			0.87	%			0.87	%			0.85	%
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			0.81	%			0.83	%			0.86	%			0.92	%			0.90	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter		$	40,284			$	41,494			$	41,406			$	40,790			$	37,770
Additions			3,837				2,878				7,574				5,334				8,653
Reductions
Payments			(3,994	)			(2,408	)			(2,942	)			(2,524	)			(1,173	)
Return to Accrual Status			(728	)			(1,083	)			(2,085	)			(535	)			(2,421	)
Sales of Foreclosed Real Estate			(1,354	)			(424	)			(2,247	)			(1,049	)			(1,320	)
Charge-offs/Write-downs			(962	)			(173	)			(212	)			(610	)			(719	)
Total Reductions			(7,038	)			(4,088	)			(7,486	)			(4,718	)			(5,633	)
Balance at End of Quarter		$	37,083			$	40,284			$	41,494			$	41,406			$	40,790
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												Year Ended
		December 31,				September 30,				December 31,				December 31,
(dollars in thousands)		2012				2012				2011				2012				2011
Balance at Beginning of Period		$	136,390			$	137,862			$	148,829			$	144,025			$	152,777
Loans and Leases Charged-Off
Commercial
Commercial and Industrial			(589	)			(519	)			(733	)			(3,617	)			(8,112	)
Construction			-				-				-				(330	)			-
Consumer
Residential Mortgage			(831	)			(628	)			(2,888	)			(4,408	)			(8,174	)
Home Equity			(1,558	)			(1,061	)			(3,714	)			(6,717	)			(10,853	)
Automobile			(646	)			(472	)			(688	)			(2,082	)			(3,229	)
Other 1			(1,806	)			(2,354	)			(1,585	)			(7,005	)			(6,392	)
Total Loans and Leases Charged-Off			(5,430	)			(5,034	)			(9,608	)			(24,159	)			(36,760	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial			904				578				469				3,939				2,434
Commercial Mortgage			19				14				8				67				538
Construction			5				3				-				8				-
Lease Financing			11				83				29				177				3,528
Consumer
Residential Mortgage			1,039				739				531				2,820				2,152
Home Equity			342				258				469				1,335				1,695
Automobile			478				433				528				1,931				2,479
Other 1			518				1,454				551				3,154				2,492
Total Recoveries on Loans and Leases Previously Charged-Off			3,316				3,562				2,585				13,431				15,318
Net Loans and Leases Charged-Off			(2,114	)			(1,472	)			(7,023	)			(10,728	)			(21,442	)
Provision for Credit Losses			-				-				2,219				979				12,690
Balance at End of Period 2		$	134,276			$	136,390			$	144,025			$	134,276			$	144,025
Components
Allowance for Loan and Lease Losses		$	128,857			$	130,971			$	138,606			$	128,857			$	138,606
Reserve for Unfunded Commitments			5,419				5,419				5,419				5,419				5,419
Total Reserve for Credit Losses		$	134,276			$	136,390			$	144,025			$	134,276			$	144,025
Average Loans and Leases Outstanding		$	5,798,057			$	5,716,421			$	5,420,352			$	5,680,279			$	5,349,938
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)			0.15	%			0.10	%			0.51	%			0.19	%			0.40	%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding			2.20	%			2.27	%			2.50	%			2.20	%			2.50	%
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 December 31, 2012
Net Interest Income		$	38,487			$	30,842			$	2,955			$	18,026			$	90,310
Provision for Credit Losses			2,403				(219	)			(70	)			(2,114	)			-
Net Interest Income After Provision for Credit Losses			36,084				31,061				3,025				20,140				90,310
Noninterest Income			25,664				8,764				15,347				3,207				52,982
Noninterest Expense			(44,403	)			(22,863	)			(13,438	)			(2,752	)			(83,456	)
Income Before Provision for Income Taxes			17,345				16,962				4,934				20,595				59,836
Provision for Income Taxes			(6,418	)			(5,838	)			(1,825	)			(5,468	)			(19,549	)
Net Income			10,927				11,124				3,109				15,127				40,287
Total Assets as of December 31, 2012		$	3,365,123			$	2,497,642			$	190,383			$	7,675,224			$	13,728,372
Three Months Ended December 31, 2011 1
Net Interest Income		$	42,333			$	33,727			$	3,784			$	16,402			$	96,246
Provision for Credit Losses			7,236				(212	)			(1	)			(4,804	)			2,219
Net Interest Income After Provision for Credit Losses			35,097				33,939				3,785				21,206				94,027
Noninterest Income			17,513				8,907				13,636				3,351				43,407
Noninterest Expense			(45,447	)			(22,572	)			(14,124	)			(2,239	)			(84,382	)
Income Before Provision for Income Taxes			7,163				20,274				3,297				22,318				53,052
Provision for Income Taxes			(2,651	)			(7,070	)			(1,219	)			(2,883	)			(13,823	)
Net Income			4,512				13,204				2,078				19,435				39,229
Total Assets as of December 31, 2011 1		$	3,147,765			$	2,337,214			$	218,088			$	8,143,324			$	13,846,391
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
Year Ended December 31, 2012
Net Interest Income		$	156,911			$	123,911			$	12,448			$	84,001			$	377,271
Provision for Credit Losses			11,443				(909	)			196				(9,751	)			979
Net Interest Income After Provision for Credit Losses			145,468				124,820				12,252				93,752				376,292
Noninterest Income			93,482				37,580				57,454				11,770				200,286
Noninterest Expense			(179,580	)			(90,110	)			(55,543	)			(9,055	)			(334,288	)
Income Before Provision for Income Taxes			59,370				72,290				14,163				96,467				242,290
Provision for Income Taxes			(21,967	)			(20,941	)			(5,240	)			(28,066	)			(76,214	)
Net Income			37,403				51,349				8,923				68,401				166,076
Total Assets as of December 31, 2012		$	3,365,123			$	2,497,642			$	190,383			$	7,675,224			$	13,728,372
Year Ended December 31, 2011 1
Net Interest Income		$	173,979			$	137,354			$	15,137			$	63,738			$	390,208
Provision for Credit Losses			22,341				(938	)			64				(8,777	)			12,690
Net Interest Income After Provision for Credit Losses			151,638				138,292				15,073				72,515				377,518
Noninterest Income			84,008				37,132				59,891				16,624				197,655
Noninterest Expense			(186,567	)			(93,935	)			(59,180	)			(8,511	)			(348,193	)
Income Before Provision for Income Taxes			49,079				81,489				15,784				80,628				226,980
Provision for Income Taxes			(18,160	)			(28,286	)			(5,841	)			(14,650	)			(66,937	)
Net Income			30,919				53,203				9,943				65,978				160,043
Total Assets as of December 31, 2011 1		$	3,147,765			$	2,337,214			$	218,088			$	8,143,324			$	13,846,391
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
		December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands, except per share amounts)		2012				2012				2012				2012				2011
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases		$	64,627			$	64,668			$	63,910			$	64,691			$	64,760
Income on Investment Securities
Available-for-Sale			15,349				15,922				16,988				17,713				19,107
Held-to-Maturity			20,253				23,232				25,054				26,413				23,608
Deposits			3				3				1				2				2
Funds Sold			180				105				119				129				120
Other			283				283				281				280				280
Total Interest Income			100,695				104,213				106,353				109,228				107,877
Interest Expense
Deposits			2,753				2,931				3,219				3,473				3,736
Securities Sold Under Agreements to Repurchase			7,158				7,185				7,250				7,304				7,392
Funds Purchased			4				7				5				5				5
Long-Term Debt			470				458				498				498				498
Total Interest Expense			10,385				10,581				10,972				11,280				11,631
Net Interest Income			90,310				93,632				95,381				97,948				96,246
Provision for Credit Losses			-				-				628				351				2,219
Net Interest Income After Provision for Credit Losses			90,310				93,632				94,753				97,597				94,027
Noninterest Income
Trust and Asset Management			12,066				11,050				11,195				10,918				11,025
Mortgage Banking			11,268				11,745				7,581				5,050				3,401
Service Charges on Deposit Accounts			9,459				9,346				9,225				9,591				9,606
Fees, Exchange, and Other Service Charges			12,333				11,907				12,326				12,399				12,401
Investment Securities Gains (Losses), Net			-				13				-				(90	)			282
Insurance			2,550				2,326				2,399				2,278				2,312
Other			5,306				5,987				4,122				7,936				4,380
Total Noninterest Income			52,982				52,374				46,848				48,082				43,407
Noninterest Expense
Salaries and Benefits			46,116				47,231				44,037				47,024				44,927
Net Occupancy			11,867				10,524				10,058				10,516				11,253
Net Equipment			4,705				4,523				4,669				5,826				4,748
Professional Fees			2,611				2,494				2,386				2,132				1,926
FDIC Insurance			1,892				1,822				2,088				2,071				2,027
Other			16,265				18,284				17,509				17,638				19,501
Total Noninterest Expense			83,456				84,878				80,747				85,207				84,382
Income Before Provision for Income Taxes			59,836				61,128				60,854				60,472				53,052
Provision for Income Taxes			19,549				19,896				20,107				16,662				13,823
Net Income		$	40,287			$	41,232			$	40,747			$	43,810			$	39,229
Basic Earnings Per Share		$	0.90			$	0.92			$	0.90			$	0.96			$	0.85
Diluted Earnings Per Share		$	0.90			$	0.92			$	0.90			$	0.95			$	0.85
Balance Sheet Totals
Loans and Leases		$	5,854,521			$	5,782,304			$	5,671,483			$	5,598,932			$	5,538,304
Total Assets			13,728,372				13,382,425				13,915,626				13,759,409				13,846,391
Total Deposits			11,529,482				11,220,547				11,547,993				10,621,170				10,592,623
Total Shareholders' Equity			1,021,665				1,024,562				1,003,825				995,897				1,002,667
Performance Ratios
Return on Average Assets			1.19	%			1.22	%			1.19	%			1.29	%			1.17	%
Return on Average Shareholders' Equity			15.47				16.02				16.19				17.26				15.23
Efficiency Ratio 1			58.24				58.13				56.77				58.35				60.42
Net Interest Margin 2			2.87				2.98				2.98				3.06				3.04
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
		Eleven Months Ended						Year Ended
($ in millions; jobs in thousands)		November 30, 2012						December 31, 2011								December 31, 2010
Hawaii Economic Trends
State General Fund Revenues 1		$	4,814.8		13.0	%		$	4,662.5			8.1	%			$	4,314.1			7.4	%
General Excise and Use Tax Revenue 1		$	2,620.0		9.9			$	2,588.5			8.8				$	2,379.9			3.6
Jobs 2			609.6						618.7								614.1
					December 31,			September 30,				December 31,
(spot rates)					2012			2012				2011				2010				2009
Unemployment 3
Statewide, seasonally adjusted					5.2	%			5.7	%		6.2	%				6.3	%		6.9	%
Oahu					4.3				5.0			5.4					4.8			5.4
Island of Hawaii					6.9				7.9			8.9					8.6			9.5
Maui					5.2				6.0			7.1					7.4			8.8
Kauai					6.0				6.8			7.8					7.8			8.7
					December 31,			September 30,				December 31,
(percentage change, except months of inventory)					2012			2012				2011				2010				2009
Housing Trends (Single Family Oahu) 4
Median Home Price					7.8	%			8.8	%		(3.0	)%				3.1	%		(7.3	)%
Home Sales Volume (units)					6.5	%			3.5	%		(2.7	)%				13.4	%		(1.8	)%
Months of Inventory					2.5				3.3			4.8					6.0			6.8
								Monthly Visitor Arrivals,								Percentage Change
(in thousands)								Seasonally Adjusted								from Previous Month
Tourism 5
October 31, 2012												648.9								1.3	%
September 30, 2012												640.9								(2.6	)
August 31, 2012												657.8								3.6
July 31, 2012												634.9								(1.9	)
June 30, 2012												647.2								(0.8	)
May 30, 2012												652.4								2.7
April 30, 2012												635.0								(4.8	)
March 31, 2012												666.7								4.9
February 29, 2012												635.5								(2.4	)
January 31, 2012												651.1								3.1
December 31, 2011												631.3								2.6
November 30, 2011												615.2								1.7
October 31, 2011												604.8								(1.2	)
September 30, 2011												612.0								3.8
August 31, 2011												589.8								0.9
July 31, 2011												584.3								1.3
June 30, 2011												577.0								(0.1	)
May 31, 2011												577.8								(0.7	)
April 30, 2011												581.9								(0.9	)
March 31, 2011												587.4								(3.0	)
February 28, 2011												605.5								(0.3	)
January 31, 2011												607.5								2.5
December 31, 2010												592.6								-
November 30, 2010												592.9								(1.5	)
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: University of Hawaii Economic Research Organization.
Note: Certain prior period seasonally adjusted information has been revised.