Bank of Hawaii Corporation Second Quarter 2016 Financial Results

• Diluted Earnings Per Share $1.03
• Net Income $44.2 Million
• Board of Directors Declares Dividend of $0.48 Per Share

HONOLULU--(BUSINESS WIRE)-- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $1.03 for the second quarter of 2016, down from diluted earnings per share of $1.16 in the previous quarter and up from diluted earnings per share of $0.95 in the same quarter last year. Net income for the second quarter of 2016 was $44.2 million compared with net income of $50.2 million in the first quarter of 2016 and net income of $41.2 million in the second quarter of 2015. Income for the first quarter of 2016 included sales of $11.2 million in Visa Class B shares. There were no sales of Visa shares during the second quarter of 2016 or the second quarter of 2015.

Loan and lease balances increased to $8.3 billion at June 30, 2016, up 3.3 percent from March 31, 2016 and up 12.2 percent compared with June 30, 2015. Deposits grew 1.1 percent during the quarter, as balances increased to $13.6 billion at June 30, 2016 compared with $13.5 billion at March 31, 2016 and $13.1 billion at June 30, 2015.

“Bank of Hawaii Corporation continued to perform well during the second quarter of 2016,” said Peter Ho, Chairman, President and CEO. “Loan balances continued to grow, our margin was stable and asset quality remains strong. We continued to make progress on our many initiatives and completed the installation of 116 smart ATM machines during the quarter. By the end of the second quarter consumer deposit transactions from these new ATMs and our mobile application have increased to approximately 30% of consumer deposit transactions enabling our branch staff to spend more time serving our customers.”

The return on average assets for the second quarter of 2016 was 1.14 percent, down from 1.30 percent in the previous quarter and up from 1.10 percent in the same quarter last year. The return on average equity for the second quarter of 2016 was 15.56 percent, down from 17.88 percent for the first quarter of 2016 and up from 15.33 percent in the second quarter of 2015. The efficiency ratio for the second quarter of 2016 was 57.35 percent compared with 54.88 percent in the previous quarter and 58.16 percent in the same quarter last year.

For the six-month period ended June 30, 2016, net income was $94.5 million, an increase of $10.9 million from net income of $83.6 million during the same period last year. Diluted earnings per share were $2.19 for the first half of 2016, up from $1.92 for the first half of 2015. The return on average assets for the six-month period ended June 30, 2016 was 1.22 percent compared with 1.12 percent for the same six months in 2015. The year-to-date return on average equity was 16.71 percent, up from 15.75 percent for the six months ended June 30, 2015. The efficiency ratio for the first half of 2016 improved to 56.08 percent compared with 58.23 percent in the same period last year.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the second quarter of 2016 was $106.5 million, an increase of $0.5 million compared with net interest income of $106.0 million in the first quarter of 2016 and an increase of $5.7 million compared with net interest income of $100.8 million in the second quarter of 2015. Net interest income in the second quarter of 2016 included interest recoveries of $1.0 million. The first quarter of 2016 included interest recoveries of $1.3 million. Net interest income for the first half of 2016 was $212.6 million, an increase of $12.2 million compared with net interest income of $200.4 million for the first half of 2015. Analyses of the changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin was 2.85 percent for the second quarter of 2016, down from 2.86 percent in the previous quarter and a 4 basis point increase from the net interest margin of 2.81 percent in the second quarter of 2015. The net interest margin for the first six months of 2016 was 2.86 percent compared with 2.81 percent for the same six-month period last year.

Results for the second quarter of 2016 included a provision for credit losses of $1.0 million due to the continued strong growth of loans and leases partially offset by improved credit metrics. Results for the first quarter of 2016 included a negative provision for credit losses of $2.0 million largely due to the full recovery of loans previously charged off. There was no provision for credit losses during the second quarter of 2015.

Noninterest income was $46.5 million in the second quarter of 2016, a decrease of $9.7 million compared with noninterest income of $56.2 million in the first quarter of 2016 and an increase of $0.6 million compared with noninterest income of $45.9 million in the second quarter of 2015. Noninterest income in the second quarter of 2016 included a service fee of $1.2 million resulting from the sale of trust real estate. Mortgage banking income increased to $4.1 million in the second quarter of 2016 due to higher loan production and increased sales of conforming loans. The increase in gains on loan sales was partially offset by a $2.6 million valuation impairment to our mortgage servicing rights primarily due to the recent decline in interest rates. Noninterest income in the first quarter of 2016 included a net gain of $11.2 million resulting from the sale of Visa Class B shares and net gains of $1.9 million related to sales of previously leased assets. Noninterest income in the second quarter of 2015 included a fee of $0.5 million related to the transition of services provided to some institutional 401k plans. Noninterest income for the first half of 2016 was $102.7 million, an increase of $4.5 million compared with noninterest income of $98.2 million for the first half of 2015.

Noninterest expense was $86.1 million in the second quarter of 2016, down $1.3 million compared with noninterest expense of $87.4 million in the first quarter of 2016 and up $2.5 million compared with noninterest expense of $83.6 million in the second quarter last year. Noninterest expense in the second quarter of 2016 included higher incentive compensation compared with the second quarter last year due to continued strong business growth, an increase of $1.0 million in medical costs from the previous quarter and separation expense of $0.4 million. Second quarter expenses were partially offset by a net gain of $1.3 million from the sale of bank-owned real estate property. Noninterest expense in the first quarter of 2016 included seasonal payroll-related expenses, higher incentive compensation compared with the previous year, and an increase of $0.5 million to the provision for unfunded commitments. First quarter expenses were partially offset by a net gain of $1.5 million from the sale of a real estate property. Noninterest expense in the second quarter of 2015 included separation expense of $0.9 million. An analysis of noninterest expenses related to salaries and benefits is included in Table 9. Noninterest expense for the first half of 2016 was $173.5 million, an increase of $3.0 million compared with noninterest expense of $170.5 million for the first half of 2015.

The effective tax rate for the second quarter of 2016 was 29.77 percent compared with 32.01 percent in the previous quarter and 31.56 percent in the same quarter last year. The lower effective tax rate in second quarter of 2016 was primarily due to the release of state tax reserves due to the lapse in the statute of limitations related to prior tax years. The effective tax rate for the first half of 2016 was 30.98 percent compared with 31.64 percent during the same period last year.

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 2016. Total non-performing assets declined to $16.3 million at June 30, 2016, down $5.7 million from non-performing assets of $22.0 million at March 31, 2016 and down $13.2 million from non-performing assets of $29.5 million at June 30, 2015. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.20 percent at the end of the second quarter of 2016, down from 0.27 percent at the end of the first quarter of 2016, and down from 0.40 percent at the end of the second quarter last year.

Accruing loans and leases past due 90 days or more were $8.8 million at June 30, 2016, up from $7.9 million at March 31, 2016 and down from $9.7 million at June 30, 2015. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $52.2 million at June 30, 2016, up from $50.7 million at March 31, 2016 and $48.3 million at June 30, 2015. 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 2016 were $1.7 million or 0.09 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $3.7 million were partially offset by recoveries of $2.0 million. The Company recorded a net recovery of loans and leases previously charged off of $3.8 million during the first quarter of 2016 as charge-offs of $4.9 million were more than offset by recoveries of $8.7 million. Net charge-offs in the second quarter of 2015 were $1.5 million and comprised of $3.5 million in charge-offs and recoveries of $2.0 million. Net recoveries in the first half of 2016 were $2.1 million compared with net charge-offs of $2.7 million, or 0.08 percent annualized of total average loans and leases outstanding for the first half of 2015.

The allowance for loan and lease losses was reduced to $103.9 million at June 30, 2016. The ratio of the allowance for loan and lease losses to total loans and leases was 1.25 percent at June 30, 2016, a decrease of 5 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, 2016 was unchanged at $6.6 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 $15.86 billion at June 30, 2016, up from $15.65 billion at March 31, 2016 and $15.25 billion at June 30, 2015. Average total assets increased to $15.64 billion during the second quarter of 2016, up from $15.54 billion during the previous quarter and $15.04 billion during the same quarter last year.

The investment securities portfolio was $6.10 billion at June 30, 2016, down from $6.21 billion at March 31, 2016 and $6.47 billion at June 30, 2015 as loan growth continues to outpace deposit growth. The portfolio remains largely comprised of securities issued by U. S. government agencies and included $3.80 billion in securities held to maturity and $2.30 billion in securities available for sale at June 30, 2016.

Total loans and leases were $8.33 billion at June 30, 2016, up from $8.07 billion at March 31, 2016 and up from $7.43 billion at June 30, 2015. Average total loans and leases were $8.21 billion during the second quarter of 2016, up from $7.94 billion during the first quarter of 2016, and up from $7.30 billion during the same quarter last year.

The commercial loan portfolio was $3.31 billion at the end of the second quarter of 2016, an increase of 1.5 percent from commercial loans of $3.26 billion at the end of the first quarter of 2016, and up 8.6 percent from commercial loans of $3.04 billion at the end of the same quarter last year. The consumer loan portfolio was $5.03 billion at the end of the second quarter of 2016, an increase of 4.5 percent from consumer loans of $4.81 billion at the end of the first quarter of 2016 and up 14.6 percent from $4.39 billion at the end of the same quarter last year. Loan and lease portfolio balances are summarized in Table 10.

Total deposits increased to $13.64 billion at June 30, 2016 compared with $13.49 billion at March 31, 2016 and $13.09 billion at June 30, 2015. Average total deposits were $13.45 billion during the second quarter of 2016, up from $13.33 billion during the previous quarter and $12.86 billion during the same quarter last year.

Consumer deposits were $6.62 billion at June 30, 2016, up from $6.57 billion at March 31, 2016 and up from $6.22 billion at June 30, 2015. Commercial deposits were $5.70 billion at June 30, 2016, up from $5.68 billion at March 31, 2016 and up from $5.52 billion at June 30, 2015. Other deposits, including public funds, were $1.33 billion at June 30, 2016, up from $1.24 billion at March 31, 2016 and down slightly from $1.34 billion at June 30, 2015. Deposit balances are summarized in Tables 7 and 10.

During the second quarter of 2016, the Company repurchased 213.0 thousand shares of common stock at a total cost of $14.6 million under its share repurchase program. The average cost was $68.71 per share repurchased. From the beginning of the share repurchase program initiated during July of 2001 through June 30, 2016, the Company has repurchased 53.3 million shares and returned over $2.0 billion to shareholders at an average cost of $37.62 per share. From July 1 through July 22, 2016, the Company repurchased an additional 60.0 thousand shares of common stock at an average cost of $68.65 per share. Remaining buyback authority under the share repurchase program was $85.6 million at July 22, 2016.

Total shareholders’ equity was $1.16 billion at June 30, 2016, up from $1.14 billion at March 31, 2016 and up from $1.08 billion at June 30, 2015. At June 30, 2016, the Tier 1 Capital Ratio was 13.66 percent compared with 13.85 percent at March 31, 2016 and 14.47 percent at June 30, 2015. The Tier 1 leverage ratio at June 30, 2016 was 7.29 percent compared with 7.25 percent at March 31, 2016 and 7.21 percent at June 30, 2015.

The Company’s Board of Directors declared a quarterly cash dividend of $0.48 per share on the Company’s outstanding shares. The dividend will be payable on September 15, 2016 to shareholders of record at the close of business on August 31, 2016.

Hawaii Economy

Economic conditions in Hawaii continue to remain positive during the second quarter of 2016 due to an active construction industry, stable tourism, low unemployment, and a strong real estate market. For the first five months of 2016, total visitor spending increased 1.0 percent and total arrivals increased 3.1 percent compared to the same period in 2015. The statewide seasonally-adjusted unemployment rate in Hawaii was 3.3 percent in June 2016 compared to 4.9 percent nationally. For the first six months of 2016, the volume of single-family home sales on Oahu increased 7.8 percent compared with the same period in 2015. The volume of condominium sales on Oahu increased 10.7 percent compared with the same period in 2015. During the first half of 2016 the median sales price of single-family homes on Oahu was 6.1 percent higher and the median sales price of a condominium was 7.4 percent higher compared with 2015. As of June 30, 2016, months of inventory of single-family homes and condominiums on Oahu remained low at approximately 3.0 months and 3.1 months, respectively. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its second quarter 2016 financial results today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time). The call will be accessible via teleconference and via the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. The toll-free number is 1 (877) 783-7534 in the United States and 1 (530) 379-4714 for international callers. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, July 25, 2016. The replay number is 1 (855) 859-2056 in the United States and 1 (404) 537-3406 from international locations. Enter the pass code 40106598 when prompted. Participants can also dial 1 (800) 585-8367 to access the replay. In addition, a replay will be available 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, 2015, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.

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

Bank of Hawaii Corporation and Subsidiaries
Financial Highlights																		Table 1
			Three Months Ended															Six Months Ended
			June 30,					March 31,					June 30,					June 30,
(dollars in thousands, except per share amounts)			2016					2016					2015					2016					2015
For the Period:
Operating Results
Net Interest Income			$	103,550				$	103,024				$	97,782				$	206,574				$	194,552
Provision for Credit Losses				1,000					(2,000	)				-					(1,000	)				-
Total Noninterest Income				46,519					56,207					45,925					102,726					98,232
Total Noninterest Expense				86,071					87,386					83,574					173,457					170,489
Net Income				44,245					50,210					41,154					94,455					83,596
Basic Earnings Per Share				1.04					1.17					0.95					2.21					1.93
Diluted Earnings Per Share				1.03					1.16					0.95					2.19					1.92
Dividends Declared Per Share				0.48					0.45					0.45					0.93					0.90
Performance Ratios
Return on Average Assets				1.14		%			1.30		%			1.10		%			1.22		%			1.12		%
Return on Average Shareholders' Equity				15.56					17.88					15.33					16.71					15.75
Efficiency Ratio 1				57.35					54.88					58.16					56.08					58.23
Net Interest Margin 2				2.85					2.86					2.81					2.86					2.81
Dividend Payout Ratio 3				46.15					38.46					47.37					42.08					46.63
Average Shareholders' Equity to Average Assets				7.31					7.27					7.16					7.29					7.14
Average Balances
Average Loans and Leases			$	8,205,104				$	7,940,097				$	7,300,506				$	8,072,600				$	7,177,467
Average Assets				15,639,596					15,537,073					15,038,500					15,588,335					14,992,524
Average Deposits				13,453,953					13,334,550					12,863,274					13,394,251					12,825,074
Average Shareholders' Equity				1,143,884					1,129,561					1,076,467					1,136,722					1,070,324
Per Share of Common Stock
Book Value			$	26.96				$	26.43				$	24.88				$	26.96				$	24.88
Tangible Book Value				26.23					25.70					24.15					26.23					24.15
Market Value
Closing				68.80					68.28					66.68					68.80					66.68
High				72.77					69.37					68.10					72.77					68.10
Low				64.96					54.55					58.70					54.55					53.90
								June 30,					March 31,					December 31,					June 30,
								2016					2016					2015					2015
As of Period End:
Balance Sheet Totals
Loans and Leases								$	8,331,469				$	8,065,610				$	7,878,985				$	7,428,438
Total Assets									15,860,901					15,654,695					15,455,016					15,248,043
Total Deposits									13,643,807					13,488,892					13,251,103					13,090,695
Other Debt									267,970					220,771					245,786					170,816
Total Shareholders' Equity									1,157,219					1,138,753					1,116,260					1,082,939
Asset Quality
Non-Performing Assets								$	16,280				$	22,015				$	28,801				$	29,450
Allowance for Loan and Lease Losses									103,932					104,677					102,880					106,006
Allowance to Loans and Leases Outstanding									1.25		%			1.30		%			1.31		%			1.43		%
Capital Ratios
Common Equity Tier 1 Capital Ratio									13.66		%			13.85		%			13.97		%			14.47		%
Tier 1 Capital Ratio									13.66					13.85					13.97					14.47
Total Capital Ratio									14.91					15.10					15.22					15.72
Tier 1 Leverage Ratio									7.29					7.25					7.26					7.21
Total Shareholders' Equity to Total Assets									7.30					7.27					7.22					7.10
Tangible Common Equity to Tangible Assets 4									7.11					7.09					7.03					6.91
Tangible Common Equity to Risk-Weighted Assets 4									13.49					13.62					13.62					14.03
Non-Financial Data
Full-Time Equivalent Employees									2,136					2,139					2,164					2,166
Branches									70					70					70					71
ATMs									451					452					456					455

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 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)						2016					2016					2015					2015
Total Shareholders' Equity						$	1,157,219				$	1,138,753				$	1,116,260				$	1,082,939
Less: Goodwill							31,517					31,517					31,517					31,517
Tangible Common Equity						$	1,125,702				$	1,107,236				$	1,084,743				$	1,051,422
Total Assets						$	15,860,901				$	15,654,695				$	15,455,016				$	15,248,043
Less: Goodwill							31,517					31,517					31,517					31,517
Tangible Assets						$	15,829,384				$	15,623,178				$	15,423,499				$	15,216,526
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements						$	8,341,990				$	8,130,093				$	7,962,484				$	7,495,744
Total Shareholders' Equity to Total Assets							7.30	%				7.27	%				7.22	%				7.10	%
Tangible Common Equity to Tangible Assets (Non-GAAP)							7.11	%				7.09	%				7.03	%				6.91	%
Tier 1 Capital Ratio							13.66	%				13.85	%				13.97	%				14.47	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)							13.49	%				13.62	%				13.62	%				14.03	%

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)				2016				2016				2015				2016				2015
Interest Income
Interest and Fees on Loans and Leases				$	82,323			$	80,895			$	73,565			$	163,218			$	144,526
Income on Investment Securities
Available-for-Sale					10,521				10,814				10,273				21,335				20,471
Held-to-Maturity					20,168				20,391				22,832				40,559				47,239
Deposits					2				4				2				6				5
Funds Sold					618				753				268				1,371				527
Other					153				212				310				365				612
Total Interest Income					113,785				113,069				107,250				226,854				213,380
Interest Expense
Deposits					3,081				2,886				2,405				5,967				4,773
Securities Sold Under Agreements to Repurchase					6,134				6,153				6,440				12,287				12,811
Funds Purchased					3				3				3				6				6
Other Debt					1,017				1,003				620				2,020				1,238
Total Interest Expense					10,235				10,045				9,468				20,280				18,828
Net Interest Income					103,550				103,024				97,782				206,574				194,552
Provision for Credit Losses					1,000				(2,000	)			-				(1,000	)			-
Net Interest Income After Provision for Credit Losses					102,550				105,024				97,782				207,574				194,552
Noninterest Income
Trust and Asset Management					12,707				11,256				12,355				23,963				24,535
Mortgage Banking					4,088				3,189				3,469				7,277				5,162
Service Charges on Deposit Accounts					8,150				8,443				8,203				16,593				16,740
Fees, Exchange, and Other Service Charges					13,978				13,444				13,352				27,422				26,249
Investment Securities Gains (Losses), Net					(312	)			11,180				86				10,868				10,317
Annuity and Insurance					2,006				1,901				1,885				3,907				3,929
Bank-Owned Life Insurance					1,551				1,548				2,088				3,099				3,822
Other					4,351				5,246				4,487				9,597				7,478
Total Noninterest Income					46,519				56,207				45,925				102,726				98,232
Noninterest Expense
Salaries and Benefits					50,289				50,514				47,610				100,803				97,390
Net Occupancy					7,158				7,003				8,605				14,161				17,938
Net Equipment					5,065				5,409				4,826				10,474				10,114
Data Processing					3,972				3,951				3,673				7,923				7,446
Professional Fees					2,047				2,639				2,265				4,686				4,599
FDIC Insurance					2,144				2,352				2,068				4,496				4,208
Other					15,396				15,518				14,527				30,914				28,794
Total Noninterest Expense					86,071				87,386				83,574				173,457				170,489
Income Before Provision for Income Taxes					62,998				73,845				60,133				136,843				122,295
Provision for Income Taxes					18,753				23,635				18,979				42,388				38,699
Net Income				$	44,245			$	50,210			$	41,154			$	94,455			$	83,596
Basic Earnings Per Share				$	1.04			$	1.17			$	0.95			$	2.21			$	1.93
Diluted Earnings Per Share				$	1.03			$	1.16			$	0.95			$	2.19			$	1.92
Dividends Declared Per Share				$	0.48			$	0.45			$	0.45			$	0.93			$	0.90
Basic Weighted Average Shares					42,729,731				42,920,794				43,305,813				42,825,369				43,345,667
Diluted Weighted Average Shares					42,942,960				43,126,526				43,518,349				43,033,199				43,558,664

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)				2016			2016			2015					2016			2015
Net Income				$	44,245		$	50,210		$	41,154				$	94,455		$	83,596
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities					5,157			8,694			(7,610	)				13,851			(2,316	)
Defined Benefit Plans					141			141			220					282			440
Total Other Comprehensive Income (Loss)					5,298			8,835			(7,390	)				14,133			(1,876	)
Comprehensive Income				$	49,543		$	59,045		$	33,764				$	108,588		$	81,720

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition															Table 5
				June 30,				March 31,				December 31,				June 30,
(dollars in thousands)				2016				2016				2015				2015
Assets
Interest-Bearing Deposits in Other Banks				$	3,819			$	4,453			$	4,130			$	3,420
Funds Sold					615,395				626,206				592,892				602,598
Investment Securities
Available-for-Sale					2,299,638				2,293,751				2,256,818				2,275,361
Held-to-Maturity (Fair Value of $3,890,220; $3,981,830; $4,006,412; and $4,240,732)					3,798,200				3,911,703				3,982,736				4,199,121
Loans Held for Sale					105,824				16,854				4,808				18,483
Loans and Leases					8,331,469				8,065,610				7,878,985				7,428,438
Allowance for Loan and Lease Losses					(103,932	)			(104,677	)			(102,880	)			(106,006	)
Net Loans and Leases					8,227,537				7,960,933				7,776,105				7,322,432
Total Earning Assets					15,050,413				14,813,900				14,617,489				14,421,415
Cash and Due from Banks					133,836				164,012				158,699				150,874
Premises and Equipment, Net					109,832				111,086				111,199				108,439
Accrued Interest Receivable					45,709				47,504				44,719				44,475
Foreclosed Real Estate					1,728				1,728				824				1,989
Mortgage Servicing Rights					19,631				22,663				23,002				23,426
Goodwill					31,517				31,517				31,517				31,517
Bank-Owned Life Insurance					271,274				269,723				268,175				265,133
Other Assets					196,961				192,562				199,392				200,775
Total Assets				$	15,860,901			$	15,654,695			$	15,455,016			$	15,248,043
Liabilities
Deposits
Noninterest-Bearing Demand				$	4,383,496			$	4,329,321			$	4,286,331			$	4,156,847
Interest-Bearing Demand					2,838,744				2,759,357				2,761,930				2,699,517
Savings					5,165,808				5,172,206				5,025,191				5,044,711
Time					1,255,759				1,228,008				1,177,651				1,189,620
Total Deposits					13,643,807				13,488,892				13,251,103				13,090,695
Funds Purchased					7,333				7,333				7,333				8,459
Short-Term Borrowings					-				408				-				-
Securities Sold Under Agreements to Repurchase					586,785				586,785				628,857				672,310
Other Debt					267,970				220,771				245,786				170,816
Retirement Benefits Payable					47,438				47,408				47,374				55,181
Accrued Interest Payable					5,532				5,661				5,032				5,254
Taxes Payable and Deferred Taxes					20,979				43,134				17,737				26,244
Other Liabilities					123,838				115,550				135,534				136,145
Total Liabilities					14,703,682				14,515,942				14,338,756				14,165,104
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2016 - 57,856,419 / 42,916,163; March 31, 2016 - 57,849,536 / 43,080,503; December 31, 2015 - 57,749,071 / 43,282,153; and June 30, 2015 - 57,745,324 / 43,535,020)					576				576				575				575
Capital Surplus					546,928				544,267				542,041				536,782
Accumulated Other Comprehensive Loss					(9,424	)			(14,722	)			(23,557	)			(28,562	)
Retained Earnings					1,370,308				1,347,374				1,316,260				1,278,672
Treasury Stock, at Cost (Shares: June 30, 2016 - 14,940,256; March 31, 2016 - 14,769,033; December 31, 2015 - 14,466,918; and June 30, 2015 - 14,210,304)					(751,169	)			(738,742	)			(719,059	)			(704,528	)
Total Shareholders' Equity					1,157,219				1,138,753				1,116,260				1,082,939
Total Liabilities and Shareholders' Equity				$	15,860,901			$	15,654,695			$	15,455,016			$	15,248,043

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, 2015				43,282,153			$	575		$	542,041		$	(23,557	)		$	1,316,260			$	(719,059	)		$	1,116,260
Net Income				-				-			-			-				94,455				-				94,455
Other Comprehensive Income				-				-			-			14,133				-				-				14,133
Share-Based Compensation				-				-			3,314			-				-				-				3,314
Common Stock Issued under Purchase and Equity
Compensation Plans and Related Tax Benefits				201,445				1			1,573			-				(277	)			4,900				6,197
Common Stock Repurchased				(567,435	)			-			-			-				-				(37,010	)			(37,010	)
Cash Dividends Declared ($0.93 per share)				-				-			-			-				(40,130	)			-				(40,130	)
Balance as of June 30, 2016				42,916,163			$	576		$	546,928		$	(9,424	)		$	1,370,308			$	(751,169	)		$	1,157,219
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

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, 2016										March 31, 2016										June 30, 2015
				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				$	4.0		$	-		0.17		%		$	4.4		$	-		0.41		%		$	3.5		$	-		0.17		%
Funds Sold					526.8			0.6		0.46					647.7			0.8		0.46					473.5			0.3		0.22
Investment Securities
Available-for-Sale
Taxable					1,619.7			6.9		1.72					1,588.5			7.2		1.80					1,558.6			6.5		1.68
Non-Taxable					691.8			5.5		3.17					715.0			5.6		3.15					725.8			5.8		3.17
Held-to-Maturity
Taxable					3,639.5			18.6		2.05					3,679.6			18.8		2.05					4,006.4			21.3		2.12
Non-Taxable					244.6			2.4		3.91					245.5			2.4		3.91					248.2			2.4		3.93
Total Investment Securities					6,195.6			33.4		2.16					6,228.6			34.0		2.19					6,539.0			36.0		2.20
Loans Held for Sale					19.9			0.2		3.64					12.2			0.1		3.89					11.1			0.1		3.66
Loans and Leases 1
Commercial and Industrial					1,176.0			9.8		3.36					1,127.4			10.8		3.84					1,156.3			9.1		3.16
Commercial Mortgage					1,686.7			16.4		3.91					1,689.2			15.7		3.74					1,499.7			14.4		3.85
Construction					210.8			2.3		4.44					170.0			2.0		4.63					126.0			1.5		4.85
Commercial Lease Financing					196.4			1.2		2.36					198.9			1.3		2.69					225.1			2.0		3.47
Residential Mortgage					3,005.4			30.1		4.01					2,918.5			29.6		4.05					2,736.2			28.3		4.14
Home Equity					1,170.9			10.5		3.61					1,103.5			10.1		3.69					906.8			8.1		3.60
Automobile					405.9			5.2		5.18					388.6			5.0		5.19					344.4			4.5		5.20
Other 2					353.0			6.9		7.78					344.0			6.5		7.64					306.0			5.7		7.51
Total Loans and Leases					8,205.1			82.4		4.03					7,940.1			81.0		4.09					7,300.5			73.6		4.04
Other					38.1			0.1		1.61					38.4			0.2		2.21					51.6			0.3		2.40
Total Earning Assets 3					14,989.5			116.7		3.12					14,871.4			116.1		3.13					14,379.2			110.3		3.07
Cash and Due from Banks					120.4										131.0										125.8
Other Assets					529.7										534.7										533.5
Total Assets				$	15,639.6									$	15,537.1									$	15,038.5
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand				$	2,738.1			0.3		0.04				$	2,761.6			0.3		0.04				$	2,611.9			0.2		0.03
Savings					5,184.8			1.1		0.09					5,137.6			1.1		0.09					5,023.5			1.1		0.09
Time					1,214.8			1.7		0.57					1,208.4			1.5		0.50					1,256.6			1.1		0.35
Total Interest-Bearing Deposits					9,137.7			3.1		0.14					9,107.6			2.9		0.13					8,892.0			2.4		0.11
Short-Term Borrowings					7.3			-		0.15					7.8			-		0.14					8.5			-		0.14
Securities Sold Under Agreements to Repurchase					586.8			6.1		4.14					602.9			6.2		4.04					672.2			6.5		3.79
Other Debt					226.8			1.0		1.80					232.3			1.0		1.73					173.9			0.6		1.43
Total Interest-Bearing Liabilities					9,958.6			10.2		0.41					9,950.6			10.1		0.40					9,746.6			9.5		0.39
Net Interest Income							$	106.5									$	106.0									$	100.8
Interest Rate Spread										2.71		%								2.73		%								2.68		%
Net Interest Margin										2.85		%								2.86		%								2.81		%
Noninterest-Bearing Demand Deposits					4,316.3										4,227.0										3,971.3
Other Liabilities					220.8										229.9										244.1
Shareholders' Equity					1,143.9										1,129.6										1,076.5
Total Liabilities and Shareholders' Equity				$	15,639.6									$	15,537.1									$	15,038.5

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 $2,977,000, $3,013,000 and $3,008,000 for the three months ended June 30, 2016, March 31, 2016, and June 30, 2015, 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, 2016									June 30, 2015
				Average			Income/			Yield/			Average			Income/			Yield/
(dollars in millions)				Balance			Expense			Rate			Balance			Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks				$	4.2		$	-		0.30		%	$	3.2		$	-		0.30		%
Funds Sold					587.3			1.4		0.46				478.9			0.5		0.22
Investment Securities
Available-for-Sale
Taxable					1,604.1			14.1		1.76				1,559.7			13.0		1.67
Non-Taxable					703.4			11.1		3.16				724.6			11.5		3.17
Held-to-Maturity
Taxable					3,659.5			37.5		2.05				4,073.2			44.0		2.17
Non-Taxable					245.1			4.8		3.91				248.7			4.9		3.94
Total Investment Securities					6,212.1			67.5		2.17				6,606.2			73.4		2.23
Loans Held for Sale					16.0			0.3		3.74				7.1			0.1		3.65
Loans and Leases 1
Commercial and Industrial					1,151.7			20.6		3.59				1,143.5			18.0		3.17
Commercial Mortgage					1,687.9			32.1		3.82				1,474.8			28.1		3.84
Construction					190.4			4.3		4.53				115.0			2.6		4.64
Commercial Lease Financing					197.7			2.5		2.53				225.5			3.9		3.44
Residential Mortgage					2,962.0			59.6		4.03				2,684.0			55.8		4.16
Home Equity					1,137.2			20.6		3.65				892.7			16.2		3.66
Automobile					397.2			10.2		5.19				338.0			8.8		5.23
Other 2					348.5			13.4		7.71				304.0			11.2		7.43
Total Loans and Leases					8,072.6			163.3		4.06				7,177.5			144.6		4.05
Other					38.2			0.4		1.91				58.8			0.6		2.08
Total Earning Assets 3					14,930.4			232.9		3.13				14,331.7			219.2		3.07
Cash and Due from Banks					125.7									131.1
Other Assets					532.2									529.7
Total Assets				$	15,588.3								$	14,992.5
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand				$	2,749.9			0.5		0.04			$	2,594.6			0.4		0.03
Savings					5,161.2			2.3		0.09				4,982.5			2.2		0.09
Time					1,211.6			3.2		0.53				1,317.1			2.2		0.34
Total Interest-Bearing Deposits					9,122.7			6.0		0.13				8,894.2			4.8		0.11
Short-Term Borrowings					7.5			-		0.15				8.4			-		0.14
Securities Sold Under Agreements to Repurchase					594.9			12.3		4.09				675.2			12.8		3.77
Other Debt					229.5			2.0		1.77				173.9			1.2		1.43
Total Interest-Bearing Liabilities					9,954.6			20.3		0.41				9,751.7			18.8		0.39
Net Interest Income							$	212.6								$	200.4
Interest Rate Spread										2.72		%							2.68		%
Net Interest Margin										2.86		%							2.81		%
Noninterest-Bearing Demand Deposits					4,271.6									3,930.9
Other Liabilities					225.4									239.6
Shareholders' Equity					1,136.7									1,070.3
Total Liabilities and Shareholders' Equity				$	15,588.3								$	14,992.5

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 $5,990,000 and $5,886,000 for the six months ended June 30, 2016 and June 30, 2015, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis												Table 8a
				Three Months Ended June 30, 2016
				Compared to March 31, 2016
(dollars in millions)				Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold				$	(0.2	)		$	-			$	(0.2	)
Investment Securities
Available-for-Sale
Taxable					0.1				(0.4	)			(0.3	)
Non-Taxable					(0.2	)			0.1				(0.1	)
Held-to-Maturity
Taxable					(0.2	)			-				(0.2	)
Total Investment Securities					(0.3	)			(0.3	)			(0.6	)
Loans Held for Sale					0.1				-				0.1
Loans and Leases
Commercial and Industrial					0.4				(1.4	)			(1.0	)
Commercial Mortgage					-				0.7				0.7
Construction					0.4				(0.1	)			0.3
Commercial Lease Financing					-				(0.1	)			(0.1	)
Residential Mortgage					0.9				(0.4	)			0.5
Home Equity					0.6				(0.2	)			0.4
Automobile					0.2				-				0.2
Other 2					0.3				0.1				0.4
Total Loans and Leases					2.8				(1.4	)			1.4
Other					-				(0.1	)			(0.1	)
Total Change in Interest Income					2.4				(1.8	)			0.6
Change in Interest Expense:
Interest-Bearing Deposits
Time					-				0.2				0.2
Total Interest-Bearing Deposits					-				0.2				0.2
Securities Sold Under Agreements to Repurchase					(0.2	)			0.1				(0.1	)
Total Change in Interest Expense					(0.2	)			0.3				0.1
Change in Net Interest Income				$	2.6			$	(2.1	)		$	0.5

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 June 30, 2016
				Compared to June 30, 2015
(dollars in millions)				Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold				$	-			$	0.3			$	0.3
Investment Securities
Available-for-Sale
Taxable					0.2				0.2				0.4
Non-Taxable					(0.3	)			-				(0.3	)
Held-to-Maturity
Taxable					(1.9	)			(0.8	)			(2.7	)
Total Investment Securities					(2.0	)			(0.6	)			(2.6	)
Loans Held for Sale					0.1				-				0.1
Loans and Leases
Commercial and Industrial					0.1				0.6				0.7
Commercial Mortgage					1.8				0.2				2.0
Construction					0.9				(0.1	)			0.8
Commercial Lease Financing					(0.2	)			(0.6	)			(0.8	)
Residential Mortgage					2.7				(0.9	)			1.8
Home Equity					2.4				-				2.4
Automobile					0.7				-				0.7
Other 2					1.0				0.2				1.2
Total Loans and Leases					9.4				(0.6	)			8.8
Other					(0.1	)			(0.1	)			(0.2	)
Total Change in Interest Income					7.4				(1.0	)			6.4
Change in Interest Expense:
Interest-Bearing Deposits
Demand					-				0.1				0.1
Time					-				0.6				0.6
Total Interest-Bearing Deposits					-				0.7				0.7
Securities Sold Under Agreements to Repurchase					(0.9	)			0.5				(0.4	)
Other Debt					0.2				0.2				0.4
Total Change in Interest Expense					(0.7	)			1.4				0.7
Change in Net Interest Income				$	8.1			$	(2.4	)		$	5.7

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, 2016
				Compared to June 30, 2015
(dollars in millions)				Volume 1				Rate 1				Total
Change in Interest Income:
Funds Sold				$	0.2			$	0.7			$	0.9
Investment Securities
Available-for-Sale
Taxable					0.4				0.7				1.1
Non-Taxable					(0.3	)			(0.1	)			(0.4	)
Held-to-Maturity
Taxable					(4.3	)			(2.2	)			(6.5	)
Non-Taxable					(0.1	)			-				(0.1	)
Total Investment Securities					(4.3	)			(1.6	)			(5.9	)
Loans Held for Sale					0.2				-				0.2
Loans and Leases
Commercial and Industrial					0.1				2.5				2.6
Commercial Mortgage					4.1				(0.1	)			4.0
Construction					1.8				(0.1	)			1.7
Commercial Lease Financing					(0.4	)			(1.0	)			(1.4	)
Residential Mortgage					5.6				(1.8	)			3.8
Home Equity					4.4				-				4.4
Automobile					1.5				(0.1	)			1.4
Other 2					1.7				0.5				2.2
Total Loans and Leases					18.8				(0.1	)			18.7
Other					(0.2	)			-				(0.2	)
Total Change in Interest Income					14.7				(1.0	)			13.7
Change in Interest Expense:
Interest-Bearing Deposits
Demand					-				0.1				0.1
Savings					0.1				-				0.1
Time					(0.2	)			1.2				1.0
Total Interest-Bearing Deposits					(0.1	)			1.3				1.2
Securities Sold Under Agreements to Repurchase					(1.5	)			1.0				(0.5	)
Other Debt					0.4				0.4				0.8
Total Change in Interest Expense					(1.2	)			2.7				1.5
Change in Net Interest Income				$	15.9			$	(3.7	)		$	12.2

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
Salaries and Benefits																	Table 9
				Three Months Ended											Six Months Ended
				June 30,			March 31,			June 30,					June 30,
(dollars in thousands)				2016			2016			2015					2016			2015
Salaries				$	28,797		$	29,141		$	28,214				$	57,938		$	56,128
Incentive Compensation					5,917			5,965			4,959					11,882			9,473
Share-Based Compensation					2,746			2,310			2,751					5,056			5,096
Commission Expense					2,151			1,357			1,927					3,508			3,519
Retirement and Other Benefits					4,092			4,954			4,117					9,046			8,848
Payroll Taxes					2,288			3,577			2,278					5,865			5,863
Medical, Dental, and Life Insurance					3,872			2,892			2,449					6,764			5,633
Separation Expense					426			318			915					744			2,830
Total Salaries and Benefits				$	50,289		$	50,514		$	47,610				$	100,803		$	97,390

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)				2016		2016		2015		2015		2015
Commercial
Commercial and Industrial				$ 1,174,879		$ 1,180,341		$ 1,115,168		$ 1,169,817		$ 1,173,259
Commercial Mortgage				1,712,271		1,687,199		1,677,147		1,622,119		1,528,685
Construction				226,062		192,909		156,660		129,254		118,714
Lease Financing				192,630		195,804		204,877		202,055		222,113
Total Commercial				3,305,842		3,256,253		3,153,852		3,123,245		3,042,771
Consumer
Residential Mortgage				3,032,981		2,929,388		2,925,605		2,875,605		2,787,847
Home Equity				1,213,154		1,131,796		1,069,400		993,817		931,191
Automobile				417,017		399,825		381,735		367,640		352,128
Other 1				362,475		348,348		348,393		329,465		314,501
Total Consumer				5,025,627		4,809,357		4,725,133		4,566,527		4,385,667
Total Loans and Leases				$ 8,331,469		$ 8,065,610		$ 7,878,985		$ 7,689,772		$ 7,428,438
Deposits
				June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)				2016		2016		2015		2015		2015
Consumer				$ 6,618,164		$ 6,568,651		$ 6,445,510		$ 6,254,862		$ 6,221,691
Commercial				5,697,490		5,678,987		5,502,739		5,397,857		5,524,153
Public and Other				1,328,153		1,241,254		1,302,854		1,284,243		1,344,851
Total Deposits				$ 13,643,807		$ 13,488,892		$ 13,251,103		$ 12,936,962		$ 13,090,695

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)				2016				2016				2015				2015				2015
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial				$	269			$	666			$	5,829			$	8,532			$	8,299
Commercial Mortgage					1,194				3,401				3,469				1,058				716
Total Commercial					1,463				4,067				9,298				9,590				9,015
Consumer
Residential Mortgage					9,979				13,719				14,598				14,749				14,918
Home Equity					3,110				2,501				4,081				3,814				3,528
Total Consumer					13,089				16,220				18,679				18,563				18,446
Total Non-Accrual Loans and Leases					14,552				20,287				27,977				28,153				27,461
Foreclosed Real Estate					1,728				1,728				824				1,392				1,989
Total Non-Performing Assets				$	16,280			$	22,015			$	28,801			$	29,545			$	29,450
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial				$	-			$	-			$	-			$	-			$	750
Total Commercial					-				-				-				-				750
Consumer
Residential Mortgage					5,640				4,219				4,453				5,060				4,789
Home Equity					1,128				2,096				1,710				1,396				2,395
Automobile					464				524				315				631				323
Other 1					1,518				1,099				1,096				1,058				1,395
Total Consumer					8,750				7,938				7,574				8,145				8,902
Total Accruing Loans and Leases Past Due 90 Days or More				$	8,750			$	7,938			$	7,574			$	8,145			$	9,652
Restructured Loans on Accrual Status and Not Past Due 90 Days or More				$	52,173			$	50,707			$	49,430			$	49,506			$	48,339
Total Loans and Leases				$	8,331,469			$	8,065,610			$	7,878,985			$	7,689,772			$	7,428,438
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases					0.17	%			0.25	%			0.36	%			0.37	%			0.37	%
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate					0.20	%			0.27	%			0.37	%			0.38	%			0.40	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate					0.04	%			0.12	%			0.29	%			0.31	%			0.32	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate					0.29	%			0.37	%			0.41	%			0.44	%			0.45	%
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					0.30	%			0.37	%			0.46	%			0.49	%			0.53	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter				$	22,015			$	28,801			$	29,545			$	29,450			$	28,777
Additions					1,300				4,002				2,353				4,427				1,909
Reductions
Payments					(3,401	)			(6,012	)			(2,473	)			(1,191	)			(1,020	)
Return to Accrual Status					(3,560	)			(4,272	)			(24	)			(1,748	)			-
Sales of Foreclosed Real Estate					-				(248	)			(458	)			(1,300	)			(83	)
Charge-offs/Write-downs					(74	)			(256	)			(142	)			(93	)			(133	)
Total Reductions					(7,035	)			(10,788	)			(3,097	)			(4,332	)			(1,236	)
Balance at End of Quarter				$	16,280			$	22,015			$	28,801			$	29,545			$	29,450

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)				2016				2016				2015					2016				2015
Balance at Beginning of Period				$	111,249			$	108,952			$	113,348				$	108,952			$	114,575
Loans and Leases Charged-Off
Commercial
Commercial and Industrial					(204	)			(257	)			(255	)				(461	)			(490	)
Consumer
Residential Mortgage					(79	)			(205	)			(54	)				(284	)			(613	)
Home Equity					17				(643	)			(211	)				(626	)			(427	)
Automobile					(1,372	)			(1,560	)			(1,237	)				(2,932	)			(2,665	)
Other 1					(2,117	)			(2,222	)			(1,739	)				(4,339	)			(3,389	)
Total Loans and Leases Charged-Off					(3,755	)			(4,887	)			(3,496	)				(8,642	)			(7,584	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial					403				6,867				456					7,270				1,102
Commercial Mortgage					14				14				14					28				28
Construction					-				23				8					23				16
Lease Financing					1				1				8					2				76
Consumer
Residential Mortgage					279				201				96					480				438
Home Equity					322				513				566					835				1,447
Automobile					541				592				396					1,133				890
Other 1					450				473				497					923				905
Total Recoveries on Loans and Leases Previously Charged-Off					2,010				8,684				2,041					10,694				4,902
Net Loans and Leases Recovered (Charged-Off)					(1,745	)			3,797				(1,455	)				2,052				(2,682	)
Provision for Credit Losses					1,000				(2,000	)			-					(1,000	)			-
Provision for Unfunded Commitments					-				500				-					500				-
Balance at End of Period 2				$	110,504			$	111,249			$	111,893				$	110,504			$	111,893
Components
Allowance for Loan and Lease Losses				$	103,932			$	104,677			$	106,006				$	103,932			$	106,006
Reserve for Unfunded Commitments					6,572				6,572				5,887					6,572				5,887
Total Reserve for Credit Losses				$	110,504			$	111,249			$	111,893				$	110,504			$	111,893
Average Loans and Leases Outstanding				$	8,205,104			$	7,940,097			$	7,300,506				$	8,072,600			$	7,177,467
Ratio of Net Loans and Leases Charged-Off (Recovered) to Average Loans and Leases Outstanding (annualized)					0.09	%			-0.19	%			0.08	%				-0.05	%			0.08	%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding					1.25	%			1.30	%			1.43	%				1.25	%			1.43	%

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, 2016
Net Interest Income				$	60,041			$	38,151			$	6,037			$	(679	)		$	103,550
Provision for Credit Losses					2,006				(258	)			(5	)			(743	)			1,000
Net Interest Income After Provision for Credit Losses					58,035				38,409				6,042				64				102,550
Noninterest Income					21,771				6,438				15,946				2,364				46,519
Noninterest Expense					(50,758	)			(17,762	)			(14,780	)			(2,771	)			(86,071	)
Income Before Provision for Income Taxes					29,048				27,085				7,208				(343	)			62,998
Provision for Income Taxes					(10,402	)			(9,608	)			(2,667	)			3,924				(18,753	)
Net Income				$	18,646			$	17,477			$	4,541			$	3,581			$	44,245
Total Assets as of June 30, 2016				$	5,076,204			$	3,239,572			$	282,143			$	7,262,982			$	15,860,901
Three Months Ended June 30, 2015 1
Net Interest Income				$	50,550			$	35,886			$	4,335			$	7,011			$	97,782
Provision for Credit Losses					1,727				(266	)			(8	)			(1,453	)			-
Net Interest Income After Provision for Credit Losses					48,823				36,152				4,343				8,464				97,782
Noninterest Income					20,809				5,892				15,680				3,544				45,925
Noninterest Expense					(49,158	)			(16,720	)			(14,572	)			(3,124	)			(83,574	)
Income Before Provision for Income Taxes					20,474				25,324				5,451				8,884				60,133
Provision for Income Taxes					(7,219	)			(8,958	)			(2,017	)			(785	)			(18,979	)
Net Income				$	13,255			$	16,366			$	3,434			$	8,099			$	41,154
Total Assets as of June 30, 2015 1				$	4,404,619			$	2,985,351			$	204,253			$	7,653,820			$	15,248,043

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, 2016
Net Interest Income				$	118,051			$	76,499			$	12,489			$	(465	)		$	206,574
Provision for Credit Losses					4,841				(6,884	)			(11	)			1,054				(1,000	)
Net Interest Income After Provision for Credit Losses					113,210				83,383				12,500				(1,519	)			207,574
Noninterest Income					42,578				14,038				29,970				16,140				102,726
Noninterest Expense					(103,499	)			(35,030	)			(30,207	)			(4,721	)			(173,457	)
Income Before Provision for Income Taxes					52,289				62,391				12,263				9,900				136,843
Provision for Income Taxes					(18,629	)			(22,264	)			(4,537	)			3,042				(42,388	)
Net Income				$	33,660			$	40,127			$	7,726			$	12,942			$	94,455
Total Assets as of June 30, 2016				$	5,076,204			$	3,239,572			$	282,143			$	7,262,982			$	15,860,901
Six Months Ended June 30, 2015 1
Net Interest Income				$	98,899			$	70,160			$	8,636			$	16,857			$	194,552
Provision for Credit Losses					3,450				(731	)			(17	)			(2,702	)			-
Net Interest Income After Provision for Credit Losses					95,449				70,891				8,653				19,559				194,552
Noninterest Income					39,917				11,544				30,407				16,364				98,232
Noninterest Expense					(99,498	)			(34,607	)			(29,161	)			(7,223	)			(170,489	)
Income Before Provision for Income Taxes					35,868				47,828				9,899				28,700				122,295
Provision for Income Taxes					(12,745	)			(16,824	)			(3,662	)			(5,468	)			(38,699	)
Net Income				$	23,123			$	31,004			$	6,237			$	23,232			$	83,596
Total Assets as of June 30, 2015 1				$	4,404,619			$	2,985,351			$	204,253			$	7,653,820			$	15,248,043

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)				2016					2016					2015					2015				2015
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases				$	82,323				$	80,895				$	78,122				$	75,874			$	73,565
Income on Investment Securities
Available-for-Sale					10,521					10,814					10,829					10,192				10,273
Held-to-Maturity					20,168					20,391					21,722					20,689				22,832
Deposits					2					4					1					2				2
Funds Sold					618					753					315					291				268
Other					153					212					381					312				310
Total Interest Income					113,785					113,069					111,370					107,360				107,250
Interest Expense
Deposits					3,081					2,886					2,443					2,410				2,405
Securities Sold Under Agreements to Repurchase					6,134					6,153					6,246					6,307				6,440
Funds Purchased					3					3					3					3				3
Other Debt					1,017					1,003					1,034					749				620
Total Interest Expense					10,235					10,045					9,726					9,469				9,468
Net Interest Income					103,550					103,024					101,644					97,891				97,782
Provision for Credit Losses					1,000					(2,000	)				1,000					-				-
Net Interest Income After Provision for Credit Losses					102,550					105,024					100,644					97,891				97,782
Noninterest Income
Trust and Asset Management					12,707					11,256					11,243					11,907				12,355
Mortgage Banking					4,088					3,189					3,130					3,291				3,469
Service Charges on Deposit Accounts					8,150					8,443					8,663					8,669				8,203
Fees, Exchange, and Other Service Charges					13,978					13,444					13,764					13,340				13,352
Investment Securities Gains (Losses), Net					(312	)				11,180					(181	)				24				86
Annuity and Insurance					2,006					1,901					2,014					1,721				1,885
Bank-Owned Life Insurance					1,551					1,548					1,608					1,609				2,088
Other					4,351					5,246					4,525					2,660				4,487
Total Noninterest Income					46,519					56,207					44,766					43,221				45,925
Noninterest Expense
Salaries and Benefits					50,289					50,514					47,997					46,576				47,610
Net Occupancy					7,158					7,003					4,876					7,403				8,605
Net Equipment					5,065					5,409					5,244					4,804				4,826
Data Processing					3,972					3,951					5,106					3,920				3,673
Professional Fees					2,047					2,639					2,803					2,258				2,265
FDIC Insurance					2,144					2,352					2,322					2,139				2,068
Other					15,396					15,518					17,379					24,788				14,527
Total Noninterest Expense					86,071					87,386					85,727					91,888				83,574
Income Before Provision for Income Taxes					62,998					73,845					59,683					49,224				60,133
Provision for Income Taxes					18,753					23,635					16,851					14,948				18,979
Net Income				$	44,245				$	50,210				$	42,832				$	34,276			$	41,154
Basic Earnings Per Share				$	1.04				$	1.17				$	1.00				$	0.79			$	0.95
Diluted Earnings Per Share				$	1.03				$	1.16				$	0.99				$	0.79			$	0.95
Balance Sheet Totals
Loans and Leases				$	8,331,469				$	8,065,610				$	7,878,985				$	7,689,772			$	7,428,438
Total Assets					15,860,901					15,654,695					15,455,016					15,164,123				15,248,043
Total Deposits					13,643,807					13,488,892					13,251,103					12,936,962				13,090,695
Total Shareholders' Equity					1,157,219					1,138,753					1,116,260					1,098,354				1,082,939
Performance Ratios
Return on Average Assets					1.14		%			1.30		%			1.11		%			0.89		%		1.10		%
Return on Average Shareholders' Equity					15.56					17.88					15.41					12.45				15.33
Efficiency Ratio 1					57.35					54.88					58.55					65.12				58.16
Net Interest Margin 2					2.85					2.86					2.85					2.77				2.81

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, 2016								December 31, 2015									December 31, 2014
Hawaii Economic Trends
State General Fund Revenues 1				$	2,601.0			4.4		%		$	5,998.6				8.4		%		$	5,535.7				1.6		%
General Excise and Use Tax Revenue 1				$	1,351.1			3.3		%		$	3,141.5				5.4		%		$	2,979.8				2.5		%
Jobs 2					665.8								658.8									643.7
																	June 30,				December 31,
(spot rates)																	2016				2015					2014
Unemployment 3
Statewide, seasonally adjusted																	3.3		%			3.2		%		4.0		%
Oahu																	3.6					2.7				3.5
Island of Hawaii																	5.0					3.7				4.7
Maui																	3.9					3.1				3.8
Kauai																	4.0					3.5				4.3
												June 30,					December 31,
(percentage change, except months of inventory)												2016					2015				2014					2013
Housing Trends (Single Family Oahu) 4
Median Home Price													6.1		%		3.7		%			3.8		%		4.8		%
Home Sales Volume (units)													7.8		%		5.2		%			(0.8	)	%		4.6		%
Months of Inventory													3.0				2.6					2.6				2.7
												Monthly Visitor Arrivals,									Percentage Change
(in thousands)												Not Seasonally Adjusted									from Previous Year
Tourism 5
May 31, 2016																	718.9									1.3
April 30, 2016																	700.6									3.4
March 31, 2016																	786.3									0.8
February 29, 2016																	688.8									4.1
January 31, 2016																	721.0									6.2
December 31, 2015																	794.2									3.7
November 30, 2015																	661.4									3.7
October 31, 2015																	692.9									4.8
September 30, 2015																	652.6									4.7
August 31, 2015																	755.9									2.9
July 31, 2015																	816.3									5.6
June 30, 2015																	767.9									6.0
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																	766.0									6.3
November 30, 2014																	638.0									2.2
October 31, 2014																	661.0									3.2
September 30, 2014																	623.1									4.2
August 31, 2014																	734.7									(1.9	)
July 31, 2014																	772.8									2.0
June 30, 2014																	724.5									1.1
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

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160725005275/en/

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Source: Bank of Hawaii Corporation