BANK OF HAWAII CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1 BOH 4Q2015 ER 01.25.16

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8-K - 8-K BOH 4Q2015 ER 01.25.16 - BANK OF HAWAII CORP	boh-4q2015er8k012516.htm

Bank of Hawaii Corporation 2015 Financial Results


•	Diluted Earnings Per Share $0.99 for the Fourth Quarter of 2015


•	Net Income $42.8 Million for the Fourth Quarter of 2015


•	2015 Diluted Earnings Per Share $3.70


•	2015 Net Income $160.7 Million


•	Board of Directors Declares Dividend of $0.45 Per Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (January 25, 2016) -- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $0.99 for the fourth quarter of 2015, up from $0.79 per share in the previous quarter, and up from $0.94 per share in the same quarter last year. Net income for the fourth quarter of 2015 was $42.8 million, compared to net income of $34.3 million in the third quarter of 2015 and $41.2 million in the same quarter last year. The return on average assets for the fourth quarter of 2015 was 1.11 percent, compared with 0.89 percent in the third quarter of 2015 and 1.12 percent in the fourth quarter last year. The return on average equity for the fourth quarter of 2015 was 15.41 percent, compared with 12.45 percent in the third quarter of 2015 and 15.39 percent in the fourth quarter last year.

Loan and lease balances were $7.9 billion at December 31, 2015, up 2.5 percent from September 30, 2015 and up 14.2 percent compared with December 31, 2014. Deposit growth remained strong during the fourth quarter, increasing 2.4 percent from September 30, 2015 and 4.9 percent from December 31, 2014. The net interest margin was 2.85 percent during the fourth quarter of 2015 compared with 2.77 percent in the previous quarter and 2.84 percent in the same quarter last year. The net interest margin for the full year of 2015 was 2.81 percent, down 4 basis points from the net interest margin of 2.85 percent in 2014.

“Bank of Hawaii finished 2015 with another year of solid financial performance," said Peter Ho, Chairman, President and CEO. “During the fourth quarter our loan balances and deposits continued to grow and we returned to provisioning due to our high level of loan production. During 2015, our net interest margin was relatively stable, asset quality remained solid, capital and liquidity remains strong, core expenses were well controlled, and we maintained our strategic and disciplined approach to grow our businesses.

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Bank of Hawaii Corporation 2015 Financial Results Page 2

Diluted earnings per share for the full year of 2015 were $3.70, up slightly from diluted earnings per share of $3.69 in 2014. Net income for the year was $160.7 million, down $2.3 million or 1.4 percent from net income of $163.0 million in the previous year. The return on average assets for the full year of 2015 was 1.06 percent compared with 1.14 percent in 2014. The return on average equity for the full year of 2015 was 14.82 percent compared with 15.50 percent in 2014.

Financial Highlights

Net interest income, on a taxable-equivalent basis, for the fourth quarter of 2015 was $104.7 million, an increase of $3.8 million compared with $100.9 million in the third quarter of 2015 and up $5.2 million compared with $99.5 million in the fourth quarter last year. Net interest income, on a taxable-equivalent basis, for the full year of 2015 was $406.0 million, an increase of $14.9 million from net interest income of $391.1 million in 2014. Analyses of changes in net interest income are included in Tables 8a, 8b and 8c.

Results for the fourth quarter of 2015 included a provision for credit losses of $1.0 million due to the continued strong growth of loans and leases during the year offset by improved credit metrics. There were no provisions for credit losses during the previous three quarters in 2015. 2014 financial results included a negative provision for credit losses of $4.9 million.

Noninterest income was $44.8 million in the fourth quarter of 2015, an increase of $1.6 million compared with $43.2 million in the third quarter of 2015 and a decrease of $1.0 million compared with $45.8 million in the fourth quarter of 2014. Noninterest income in the fourth quarter of 2015 included a gain of $1.0 million due to a distribution from a low-income housing partnership. Noninterest income in the third quarter of 2015 included a loss of $1.0 million on the sale of an aircraft lease. Noninterest income in the fourth quarter of 2014 included a gain of $2.0 million from the sale of 22,000 Visa Class B shares. Noninterest income for the full year of 2015 was $186.2 million compared with noninterest income of $180.0 million in 2014. The increase in noninterest income compared with the previous year was primarily the result of higher mortgage banking income which totaled $11.6 million in 2015 compared with $7.6 million in 2014 and increased gains on the sales of Visa Class B shares which totaled $10.1 million in 2015 compared with $7.9 million in 2014.

Noninterest expense was $85.7 million in the fourth quarter of 2015, down $6.2 million compared with $91.9 million in the third quarter of 2015 and up $4.5 million compared with $81.2 million in the fourth quarter of 2014. Noninterest expense in the fourth quarter of 2015 included net gains of $3.9 million related to the disposal of two branches which was partially offset by expenses of $1.3 million for the roll-out of chip-enabled debit cards, operating losses of $1.1 million, and severance expenses of $0.5 million. Noninterest expenses in the third quarter of 2015 included a $9.5 million impairment on the residual values of six aircraft in which the leases had expired. Noninterest expense in the fourth quarter of 2014 included an insurance reserve reduction of $2.0 million. Noninterest expense for the full year of 2015 was $348.1 million compared with noninterest expense of $326.9 million in 2014.

The efficiency ratio for the fourth quarter of 2015 was 58.55 percent compared with 65.12 percent in the previous quarter and 57.03 percent in the same quarter last year. The efficiency ratio for the full year of 2015 was 59.99 percent compared with 58.41 percent during the full year of 2014.

The effective tax rate for the fourth quarter of 2015 was 28.23 percent compared with 30.37 percent in the previous quarter and 32.71 percent in the same quarter last year. The lower effective tax rate during the fourth quarter of 2015 was due to the release of a valuation allowance related to the sale of a low-income housing investment. The effective tax rate for the full year of 2015 was 30.49 percent compared with 31.39 percent for the full year of 2014.

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Bank of Hawaii Corporation 2015 Financial Results Page 3

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 continued to remain strong during the fourth quarter of 2015. Total non-performing assets decreased to $28.8 million at December 31, 2015, down from $29.5 million at September 30, 2015 and $30.1 million at December 31, 2014. Non-performing assets, as a percentage of total loans and leases and foreclosed real estate, were 0.37 percent at December 31, 2015, down from 0.38 percent at September 30, 2015 and 0.44 percent at December 31, 2014.

Accruing loans and leases past due 90 days or more were $7.6 million at December 31, 2015, down from $8.1 million at September 30, 2015 and $8.7 million at December 31, 2014. Restructured loans and leases not included in non-accrual loans or accruing loans past due 90 days or more were $49.4 million at December 31, 2015 compared with $49.5 million at September 30, 2015 and $45.5 million at December 31, 2014. 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 2015 were $2.2 million or 0.11 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $4.5 million during the quarter were partially offset by recoveries of $2.3 million. Net charge-offs during the third quarter of 2015 were $2.0 million or 0.10 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $4.4 million and recoveries of $2.4 million. Net charge-offs during the fourth quarter of 2014 were $1.7 million or 0.10 percent annualized of total average loans and leases outstanding and were comprised of charge-offs of $3.7 million and recoveries of $2.1 million. Net charge-offs for the full year of 2015 were $6.8 million or 0.09 percent of total average loans and leases compared with $1.9 million or 0.03 percent of total average loans and leases in 2014.

The allowance for loan and lease losses was $102.9 million at December 31, 2015, down $1.1 million compared with $104.0 million at September 30, 2015 and down $5.8 million compared with $108.7 million at December 31, 2014. The ratio of the allowance for loan and lease losses to total loans and leases outstanding was 1.31 percent at December 31, 2015, a decrease of 4 basis points from September 30, 2015 and down 27 basis points from December 31, 2014. The decrease in the allowance for loan and lease losses is commensurate with the continued improvement in credit quality and the Hawaii economy. The total reserve for unfunded commitments at December 31, 2015 was unchanged from the prior quarter and remained at $6.1 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

The Company’s total assets increased to $15.5 billion at December 31, 2015, up $290.9 million from total assets of $15.2 billion at September 30, 2015 and up $667.8 million from total assets of $14.8 billion at December 31, 2014. Average total assets were $15.3 billion during the fourth quarter of 2015, up $114.9 million from average total assets of $15.2 billion during the third quarter of 2015 and up $732.1 million from average total assets of $14.6 billion during the fourth quarter of 2014.

The investment portfolio was $6.2 billion at December 31, 2015 compared to $6.4 billion at September 30, 2015 and $6.8 billion at December 31, 2014. The investment portfolio remains largely comprised of securities issued by U. S. government agencies and includes $4.0 billion in securities held to maturity and $2.2 billion in securities available for sale.

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Bank of Hawaii Corporation 2015 Financial Results Page 4

Total loans and leases increased to $7.9 billion at December 31, 2015, up from $7.7 billion at September 30, 2015 and up from $6.9 billion at December 31, 2014. The commercial loan portfolio was $3.2 billion at the end of the fourth quarter of 2015, up 1.0 percent from commercial loans of $3.1 billion at the end of the third quarter of 2015 and up 11.5 percent from commercial loans of $2.8 billion at the end of the fourth quarter last year. Consumer loans increased to $4.7 billion at December 31, 2015, up 3.5 percent from consumer loans of $4.6 billion at the end of the third quarter of 2015 and up 16.1 percent from consumer loans of $4.1 billion at the end of the fourth quarter last year. Average total loans and leases were $7.8 billion during the fourth quarter of 2015, up from $7.5 billion during the previous quarter and $6.7 billion during the same quarter last year. Loan and lease portfolio balances are summarized in Table 10.

Deposit generation continued to remain strong during the fourth quarter of 2015. Total deposits increased to $13.3 billion at December 31, 2015, up from total deposits of $12.9 billion at September 30, 2015 and $12.6 billion at December 31, 2014. Average total deposits were $13.0 billion in the fourth quarter of 2015, up slightly from the previous quarter and up from $12.4 billion during the same quarter last year. Deposit balances are summarized in Tables 7a, 7b, and 10.

During the fourth quarter of 2015, the Company repurchased 214.0 thousand shares of common stock at a total cost of $13.9 million under its share repurchase program. The average cost was $65.08 per share repurchased. From the beginning of the share repurchase program initiated during July 2001 through December 31, 2015, the Company has repurchased 52.8 million shares and returned nearly $2.0 billion to shareholders at an average cost of $37.35 per share. Remaining buyback authority under the share repurchase program was $23.0 million at December 31, 2015. From January 4 through January 22, 2016, the Company repurchased an additional 62.5 thousand shares of common stock at an average cost of $58.81 per share repurchased.

Total shareholders’ equity was $1.12 billion at December 31, 2015, up from $1.10 billion at September 30, 2015 and $1.06 billion at December 31, 2014. The Tier 1 Capital Ratio was 13.97 percent at December 31, 2015 compared with 14.11 percent at September 30, 2015 and 14.69 percent at December 31, 2014. The Tier 1 Leverage Ratio at December 31, 2015 was 7.26 percent compared with 7.18 percent at September 30, 2015 and 7.13 percent at December 31, 2014.

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, 2016 to shareholders of record at the close of business on February 29, 2016.

Hawaii Economy

General economic conditions in Hawaii continued to be healthy during the fourth quarter of 2015, led by a strong tourism industry, relatively low unemployment, rising real estate prices, and an active construction industry. For the first eleven months of 2015, total visitor arrivals increased by 4.2 percent and visitor spending increased by 2.2 percent compared to the same period in 2014. The statewide seasonally-adjusted unemployment rate declined to 3.2 percent in November 2015 compared to 5.0 percent nationally. Real estate prices on Oahu reached new records during 2015. The volume of single-family home sales on Oahu during the year increased 5.2 percent and the volume of condominium sales on Oahu increased 4.5 percent compared with 2014. The median price of single-family homes on Oahu increased 3.7 percent and the median price of condominiums on Oahu increased 2.9 percent compared with sales during 2014. As of December 31, 2015, months of inventory of single-family homes and condominiums on Oahu declined to 2.6 months and 2.9 months, respectively. More information on current Hawaii economic trends is presented in Table 15.

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Bank of Hawaii Corporation 2015 Financial Results Page 5

Conference Call Information

The Company will review its 2015 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 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, January 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 21670681 when prompted. Participants may also dial 1 (800) 585-8367 to access the replay. A replay will also be available via the investor relations link of the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the U.S. Securities and Exchange Commission. We 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.

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Bank of Hawaii Corporation and Subsidiaries
Financial Highlights													Table 1
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
(dollars in thousands, except per share amounts)	2015			2015			2014			2015			2014
For the Period:
Operating Results
Net Interest Income	$	101,644		$	97,891		$	96,632		$	394,087		$	379,656
Provision for Credit Losses	1,000			—			—			1,000			(4,864		)
Total Noninterest Income	44,766			43,221			45,818			186,219			180,017
Total Noninterest Expense	85,727			91,888			81,240			348,104			326,899
Net Income	42,832			34,276			41,191			160,704			163,042
Basic Earnings Per Share	1.00			0.79			0.95			3.72			3.71
Diluted Earnings Per Share	0.99			0.79			0.94			3.70			3.69
Dividends Declared Per Share	0.45			0.45			0.45			1.80			1.80

Performance Ratios
Return on Average Assets	1.11		%	0.89		%	1.12		%	1.06		%	1.14			%
Return on Average Shareholders' Equity	15.41			12.45			15.39			14.82			15.50
Efficiency Ratio ¹	58.55			65.12			57.03			59.99			58.41
Net Interest Margin ²	2.85			2.77			2.84			2.81			2.85
Dividend Payout Ratio³	45.00			56.96			47.37			48.39			48.52
Average Shareholders' Equity to Average Assets	7.19			7.18			7.27			7.16			7.35

Average Balances
Average Loans and Leases	$	7,785,346		$	7,545,985		$	6,746,332		$	7,423,572		$	6,405,431
Average Assets	15,335,574			15,220,660			14,603,493			15,136,494			14,317,516
Average Deposits	13,038,637			13,008,890			12,435,692			12,925,235			12,122,148
Average Shareholders' Equity	1,102,548			1,092,592			1,061,900			1,084,059			1,052,195

Per Share of Common Stock
Book Value	$	25.79		$	25.34		$	24.13		$	25.79		$	24.13
Tangible Book Value	25.06			24.61			23.41			25.06			23.41
Market Value
Closing	62.90			63.49			59.31			62.90			59.31
High	70.07			69.00			61.00			70.07			61.73
Low	60.55			58.53			52.70			53.90			52.70

							December 31,			September 30,			December 31,
							2015			2015			2014
As of Period End:
Balance Sheet Totals
Loans and Leases							$	7,878,985		$	7,689,772		$	6,897,589
Total Assets							15,455,016			15,164,123			14,787,208
Total Deposits							13,251,103			12,936,962			12,633,089
Other Debt							245,786			270,801			173,912
Total Shareholders' Equity							1,116,260			1,098,354			1,055,086

Asset Quality
Non-Performing Assets							$	28,801		$	29,545		$	30,082
Allowance for Loan and Lease Losses							102,880			104,038			108,688
Allowance to Loans and Leases Outstanding							1.31		%	1.35		%	1.58			%

Capital Ratios
Common Equity Tier 1 Capital Ratio ⁴							13.97		%	14.11			n/a
Tier 1 Capital Ratio⁴							13.97			14.11		%	14.69			%
Total Capital Ratio ⁴							15.22			15.37			15.94
Tier 1 Leverage Ratio ⁴							7.26			7.18			7.13
Total Shareholders' Equity to Total Assets							7.22			7.24			7.14
Tangible Common Equity to Tangible Assets ⁵							7.03			7.05			6.94
Tangible Common Equity to Risk-Weighted Assets^{4, 5}							13.62			13.78			14.46

Non-Financial Data
Full-Time Equivalent Employees							2,164			2,154			2,161
Branches							70			72			74
ATMs							456			455			459

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



Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures								Table 2
		December 31,			September 30,			December 31,
(dollars in thousands)		2015			2015			2014
Total Shareholders' Equity		$	1,116,260		$	1,098,354		$	1,055,086
Less:	Goodwill	31,517			31,517			31,517
Tangible Common Equity		$	1,084,743		$	1,066,837		$	1,023,569

Total Assets		$	15,455,016		$	15,164,123		$	14,787,208
Less:	Goodwill	31,517			31,517			31,517
Tangible Assets		$	15,423,499		$	15,132,606		$	14,755,691

Risk-Weighted Assets, determined in accordance
	with prescribed regulatory requirements ¹	$	7,962,484		$	7,740,028		$	7,077,035

Total Shareholders' Equity to Total Assets		7.22		%	7.24		%	7.14		%
Tangible Common Equity to Tangible Assets (Non-GAAP)		7.03		%	7.05		%	6.94		%

Tier 1 Capital Ratio ¹		13.97		%	14.11		%	14.69		%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) ¹		13.62		%	13.78		%	14.46		%


¹ Risk-weighted assets and capital ratios were calculated under Basel III rules, which became effective January 1, 2015.



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income										Table 3
	Three Months Ended							Year Ended
	December 31,			September 30,		December 31,		December 31,
(dollars in thousands, except per share amounts)	2015			2015		2014		2015		2014
Interest Income
Interest and Fees on Loans and Leases	$	78,122		$	75,874	$	69,974	$	298,522	$	267,407
Income on Investment Securities
Available-for-Sale	10,829			10,192		10,732		41,492		42,475
Held-to-Maturity	21,722			20,689		24,966		89,650		105,860
Deposits	1			2		2		8		9
Funds Sold	315			291		192		1,133		673
Other	381			312		303		1,305		1,209
Total Interest Income	111,370			107,360		106,169		432,110		417,633
Interest Expense
Deposits	2,443			2,410		2,392		9,626		9,534
Securities Sold Under Agreements to Repurchase	6,246			6,307		6,520		25,364		25,905
Funds Purchased	3			3		3		12		13
Other Debt	1,034			749		622		3,021		2,525
Total Interest Expense	9,726			9,469		9,537		38,023		37,977
Net Interest Income	101,644			97,891		96,632		394,087		379,656
Provision for Credit Losses	1,000			—		—		1,000		(4,864		)
Net Interest Income After Provision for Credit Losses	100,644			97,891		96,632		393,087		384,520
Noninterest Income
Trust and Asset Management	11,243			11,907		12,225		47,685		47,798
Mortgage Banking	3,130			3,291		2,116		11,583		7,571
Service Charges on Deposit Accounts	8,663			8,669		9,058		34,072		35,669
Fees, Exchange, and Other Service Charges	13,764			13,340		13,702		53,353		53,401
Investment Securities Gains, Net	(181		)	24		1,966		10,160		8,063
Annuity and Insurance	2,014			1,721		1,664		7,664		8,065
Bank-Owned Life Insurance	1,608			1,609		1,874		7,039		6,639
Other	4,525			2,660		3,213		14,663		12,811
Total Noninterest Income	44,766			43,221		45,818		186,219		180,017
Noninterest Expense
Salaries and Benefits	47,997			46,576		45,520		191,963		183,028
Net Occupancy	4,876			7,403		9,291		30,217		37,296
Net Equipment	5,244			4,804		4,734		20,162		18,479
Data Processing	5,106			3,920		3,823		16,472		14,979
Professional Fees	2,803			2,258		3,086		9,660		9,794
FDIC Insurance	2,322			2,139		2,055		8,669		7,936
Other	17,379			24,788		12,731		70,961		55,387
Total Noninterest Expense	85,727			91,888		81,240		348,104		326,899
Income Before Provision for Income Taxes	59,683			49,224		61,210		231,202		237,638
Provision for Income Taxes	16,851			14,948		20,019		70,498		74,596
Net Income	$	42,832		$	34,276	$	41,191	$	160,704	$	163,042
Basic Earnings Per Share	$	1.00		$	0.79	$	0.95	$	3.72	$	3.71
Diluted Earnings Per Share	$	0.99		$	0.79	$	0.94	$	3.70	$	3.69
Dividends Declared Per Share	$	0.45		$	0.45	$	0.45	$	1.80	$	1.80
Basic Weighted Average Shares	43,003,191			43,181,233		43,499,627		43,217,818		43,899,208
Diluted Weighted Average Shares	43,275,377			43,427,730		43,758,873		43,454,877		44,125,456



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)		2015			2015		2014			2015			2014
Net Income		$	42,832		$	34,276	$	41,191		$	160,704		$	163,042
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities	(6,860		)	7,051		1,567			(2,125		)	16,858
	Defined Benefit Plans	4,595			219		(12,190		)	5,254			(11,721		)
Total Other Comprehensive Income (Loss)		(2,265		)	7,270		(10,623		)	3,129			5,137
Comprehensive Income		$	40,567		$	41,546	$	30,568		$	163,833		$	168,179



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition							Table 5
	December 31,			September 30,			December 31,
(dollars in thousands)	2015			2015			2014
Assets
Interest-Bearing Deposits in Other Banks	$	4,130		$	3,609		$	2,873
Funds Sold	592,892			274,873			360,577
Investment Securities
Available-for-Sale	2,256,818			2,279,722			2,289,190
Held-to-Maturity (Fair Value of $4,006,412; $4,181,613; and $4,504,495)	3,982,736			4,121,768			4,466,679
Loans Held for Sale	4,808			3,222			5,136
Loans and Leases	7,878,985			7,689,772			6,897,589
Allowance for Loan and Lease Losses	(102,880		)	(104,038		)	(108,688		)
Net Loans and Leases	7,776,105			7,585,734			6,788,901
Total Earning Assets	14,617,489			14,268,928			13,913,356
Cash and Due from Banks	158,699			208,601			172,126
Premises and Equipment, Net	111,199			108,987			109,854
Accrued Interest Receivable	44,719			47,512			44,654
Foreclosed Real Estate	824			1,392			2,311
Mortgage Servicing Rights	23,002			23,301			24,695
Goodwill	31,517			31,517			31,517
Bank-Owned Life Insurance	268,175			266,568			262,807
Other Assets	199,392			207,317			225,888
Total Assets	$	15,455,016		$	15,164,123		$	14,787,208

Liabilities
Deposits
Noninterest-Bearing Demand	$	4,286,331		$	4,102,713		$	3,832,943
Interest-Bearing Demand	2,761,930			2,631,542			2,559,570
Savings	5,025,191			5,016,462			4,806,575
Time	1,177,651			1,186,245			1,434,001
Total Deposits	13,251,103			12,936,962			12,633,089
Funds Purchased	7,333			8,459			8,459
Securities Sold Under Agreements to Repurchase	628,857			632,138			688,601
Other Debt	245,786			270,801			173,912
Retirement Benefits Payable	47,374			54,978			55,477
Accrued Interest Payable	5,032			5,869			5,148
Taxes Payable and Deferred Taxes	17,737			25,294			27,777
Other Liabilities	135,534			131,268			139,659
Total Liabilities	14,338,756			14,065,769			13,732,122
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2015 - 57,749,071 / 43,282,153;
September 30, 2015 - 57,749,071 / 43,342,940;
and December 31, 2014 - 57,634,755 / 43,724,208)	575			575			574
Capital Surplus	542,041			539,112			531,932
Accumulated Other Comprehensive Loss	(23,557		)	(21,292		)	(26,686		)
Retained Earnings	1,316,260			1,293,416			1,234,801
Treasury Stock, at Cost (Shares: December 31, 2015 - 14,466,918;
September 30, 2015 - 14,406,131; and December 31, 2014 - 13,910,547)	(719,059		)	(713,457		)	(685,535		)
Total Shareholders' Equity	1,116,260			1,098,354			1,055,086
Total Liabilities and Shareholders' Equity	$	15,455,016		$	15,164,123		$	14,787,208



Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																	Table 6
								Accum.
								Other
								Compre-
								hensive
	Common Shares			Common		Capital		Income			Retained			Treasury
(dollars in thousands)		Outstanding		Stock		Surplus		(Loss)			Earnings			Stock			Total
Balance as of December 31, 2013		44,490,385		$	572	$	522,505	$	(31,823	)	$	1,151,754		$	(631,032	)	$	1,011,976
Net Income		—		—		—		—			163,042			—			163,042
Other Comprehensive Income		—		—		—		5,137									5,137
Share-Based Compensation		—		—		7,870		—			—			—			7,870
Common Stock Issued under Purchase and Equity
	Compensation Plans and Related Tax Benefits	345,278		2		1,557		—			(335		)	9,543			10,767
Common Stock Repurchased		(1,111,455	)	—		—		—			—			(64,046		)	(64,046		)
Cash Dividends Declared ($1.80 per share)		—		—		—		—			(79,660		)	—			(79,660		)
Balance as of December 31, 2014		43,724,208		$	574	$	531,932	$	(26,686	)	$	1,234,801		$	(685,535	)	$	1,055,086

Net Income		—		—		—		—			160,704			—			160,704
Other Comprehensive Income		—		—		—		3,129			—			—			3,129
Share-Based Compensation		—		—		7,689		—			—			—			7,689
Common Stock Issued under Purchase and Equity
	Compensation Plans and Related Tax Benefits	401,904		1		2,420		—			(878		)	19,457			21,000
Common Stock Repurchased		(843,959	)	—		—		—			—			(52,981		)	(52,981		)
Cash Dividends Paid ($1.80 per share)		—		—		—		—			(78,367		)	—			(78,367		)
Balance as of December 31, 2015		43,282,153		$	575	$	542,041	$	(23,557	)	$	1,316,260		$	(719,059	)	$	1,116,260



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, 2015						September 30, 2015						December 31, 2014
		Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	3.8	$	—	0.10	%	$	3.4	$	—	0.22	%	$	3.4	$	—	0.24	%
Funds Sold		466.3		0.3		0.26		508.2		0.3		0.22		358.8		0.2		0.21
Investment Securities
	Available-for-Sale
	Taxable	1,573.3		7.1		1.81		1,524.4		6.5		1.69		1,563.9		7.0		1.78
	Non-Taxable	718.5		5.7		3.18		719.4		5.8		3.19		715.1		5.8		3.24
	Held-to-Maturity
	Taxable	3,827.9		20.2		2.10		3,953.3		19.1		1.93		4,256.3		23.3		2.19
	Non-Taxable	246.6		2.4		3.92		247.3		2.4		3.93		250.0		2.5		3.95
Total Investment Securities		6,366.3		35.4		2.22		6,444.4		33.8		2.09		6,785.3		38.6		2.27
Loans Held for Sale		7.1		0.1		4.26		13.4		0.1		3.82		2.8		—		3.92
Loans and Leases ¹
	Commercial and Industrial	1,155.2		9.4		3.22		1,166.7		9.3		3.15		1,025.3		8.5		3.30
	Commercial Mortgage	1,653.9		15.5		3.71		1,568.2		15.0		3.79		1,421.3		13.9		3.87
	Construction	140.9		1.7		4.90		124.5		1.5		4.93		110.4		1.2		4.52
	Commercial Lease Financing	204.2		1.8		3.46		216.2		1.9		3.50		228.7		1.9		3.41
	Residential Mortgage	2,895.3		29.2		4.04		2,832.4		28.8		4.07		2,501.8		26.5		4.24
	Home Equity	1,027.4		9.3		3.61		961.3		8.6		3.58		850.5		8.2		3.82
	Automobile	373.7		4.9		5.19		359.2		4.7		5.18		314.0		4.2		5.29
	Other ²	334.7		6.4		7.57		317.5		6.1		7.60		294.3		5.5		7.37
Total Loans and Leases		7,785.3		78.2		4.00		7,546.0		75.9		4.00		6,746.3		69.9		4.13
Other		41.1		0.4		3.71		37.5		0.3		3.33		68.7		0.3		1.76
Total Earning Assets ³		14,669.9		114.4		3.11		14,552.9		110.4		3.02		13,965.3		109.0		3.11
Cash and Due from Banks		126.2						131.6						140.2
Other Assets		539.5						536.2						498.0
Total Assets		$	15,335.6					$	15,220.7					$	14,603.5

Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,653.2	0.2		0.03		$	2,622.4	0.2		0.03		$	2,459.0	0.2		0.03
	Savings	5,028.8		1.1		0.09		5,067.8		1.1		0.09		4,720.7		1.0		0.09
	Time	1,178.2		1.1		0.38		1,201.3		1.1		0.36		1,480.5		1.2		0.32
Total Interest-Bearing Deposits		8,860.2		2.4		0.11		8,891.5		2.4		0.11		8,660.2		2.4		0.11
Short-Term Borrowings		8.1		—		0.14		8.5		—		0.14		8.5		—		0.14
Securities Sold Under Agreements to Repurchase		630.5		6.3		3.88		643.3		6.3		3.84		693.2		6.5		3.68
Other Debt		306.4		1		1.34		223.2		0.8		1.34		173.9		0.6		1.43
Total Interest-Bearing Liabilities		9,805.2		9.7		0.39		9,766.5		9.5		0.38		9,535.8		9.5		0.39
Net Interest Income				$	104.7					$	100.9					$	99.5
	Interest Rate Spread					2.72	%					2.64	%					2.72	%
	Net Interest Margin					2.85	%					2.77	%					2.84	%
Noninterest-Bearing Demand Deposits		4,178.4						4,117.4						3,775.5
Other Liabilities		249.5						244.2						230.3
Shareholders' Equity		1,102.5						1,092.6						1,061.9
Total Liabilities and Shareholders' Equity		$	15,335.6					$	15,220.7					$	14,603.5


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 $3,016,000, $3,035,000 and $2,908,000 for the three months ended
	December 31, 2015, September 30, 2015 and December 31, 2014, respectively.



Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis												Table 7b
		Year Ended						Year Ended
		December 31, 2015						December 31, 2014
		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	3.4	$	—	0.22	%	$	4.3	$	—	0.21	%
Funds Sold		483.1		1.1		0.23		316.2		0.7		0.21
Investment Securities
	Available-for-Sale
	Taxable	1,554.2		26.6		1.71		1,536.5		27.7		1.80
	Non-Taxable	721.7		22.9		3.18		699.6		22.7		3.24
	Held-to-Maturity
	Taxable	3,981.2		83.3		2.09		4,412.5		99.4		2.25
	Non-Taxable	247.8		9.8		3.93		251.3		10.0		3.95
Total Investment Securities		6,504.9		142.6		2.19		6,899.9		159.8		2.32
Loans Held for Sale		8.7		0.3		3.83		3.2		0.1		4.31
Loans and Leases ¹
	Commercial and Industrial	1,152.3		36.6		3.18		970.3		33.3		3.43
	Commercial Mortgage	1,543.5		58.5		3.79		1,331.5		52.5		3.94
	Construction	123.9		5.9		4.79		109.4		4.8		4.40
	Commercial Lease Financing	217.8		7.5		3.46		237.6		7.0		2.96
	Residential Mortgage	2,774.7		113.9		4.10		2,377.9		101.6		4.27
	Home Equity	944.0		34.2		3.63		815.6		31.9		3.91
	Automobile	352.3		18.4		5.21		288.8		15.4		5.32
	Other ²	315.1		23.7		7.51		274.3		20.8		7.58
Total Loans and Leases		7,423.6		298.7		4.02		6,405.4		267.3		4.17
Other		49.0		1.3		2.67		72.7		1.2		1.66
Total Earning Assets ³		14,472.7		444.0		3.07		13,701.7		429.1		3.13
Cash and Due from Banks		130.0						143.4
Other Assets		533.8						472.4
Total Assets		$	15,136.5					$	14,317.5

Interest-Bearing Liabilities
Interest-Bearing Deposits
	Demand	$	2,616.4	0.8		0.03		$	2,390.8	0.7		0.03
	Savings	5,015.6		4.4		0.09		4,592.6		3.9		0.09
	Time	1,252.9		4.4		0.35		1,450.3		4.9		0.34
Total Interest-Bearing Deposits		8,884.9		9.6		0.11		8,433.7		9.5		0.11
Short-Term Borrowings		8.4		—		0.15		9.3		—		0.14
Securities Sold Under Agreements to Repurchase		655.9		25.4		3.87		747.9		25.9		3.46
Other Debt		219.7		3.0		1.37		174.4		2.6		1.45
Total Interest-Bearing Liabilities		9,768.9		38.0		0.39		9,365.3		38.0		0.41
Net Interest Income				$	406.0					$	391.1
	Interest Rate Spread					2.68	%					2.72	%
	Net Interest Margin					2.81	%					2.85	%
Noninterest-Bearing Demand Deposits		4,040.3						3,688.4
Other Liabilities		243.2						211.6
Shareholders' Equity		1,084.1						1,052.2
Total Liabilities and Shareholders' Equity		$	15,136.5					$	14,317.5


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 $11,937,000 and $11,479,000 for the year ended
	December 31, 2015 and December 31, 2014, respectively.



Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended December 31, 2015
	Compared to September 30, 2015
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Investment Securities
Available-for-Sale
Taxable	$	0.2		$	0.4		$	0.6
Non-Taxable	—			(0.1		)	(0.1		)
Held-to-Maturity
Taxable	(0.6		)	1.7			1.1
Total Investment Securities	(0.4		)	2.0			1.6
Loans and Leases
Commercial and Industrial	(0.1		)	0.2			0.1
Commercial Mortgage	0.8			(0.3		)	0.5
Construction	0.2			—			0.2
Commercial Lease Financing	(0.1		)	—			(0.1		)
Residential Mortgage	0.6			(0.2		)	0.4
Home Equity	0.6			0.1			0.7
Automobile	0.2			—			0.2
Other ²	0.3			—			0.3
Total Loans and Leases	2.5			(0.2		)	2.3
Other	—			0.1			0.1
Total Change in Interest Income	2.1			1.9			4.0

Change in Interest Expense:
Securities Sold Under Agreements to Repurchase	(0.1		)	0.1			—
Other Debt	0.2			—			0.2
Total Change in Interest Expense	0.1			0.1			0.2

Change in Net Interest Income	$	2.0		$	1.8		$	3.8


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, 2015
	Compared to December 31, 2014
(dollars in millions)	Volume ¹			Rate¹			Total
Change in Interest Income:
Funds Sold	$	0.1		$	—		$	0.1
Investment Securities
Available-for-Sale
Taxable	—			0.1			0.1
Non-Taxable	—			(0.1		)	(0.1		)
Held-to-Maturity
Taxable	(2.3		)	(0.8		)	(3.1		)
Non-Taxable	(0.1		)	—			(0.1		)
Total Investment Securities	(2.4		)	(0.8		)	(3.2		)
Loans Held for Sale	0.1			—			0.1
Loans and Leases
Commercial and Industrial	1.1			(0.2		)	0.9
Commercial Mortgage	2.2			(0.6		)	1.6
Construction	0.4			0.1			0.5
Commercial Lease Financing	(0.1		)	—			(0.1		)
Residential Mortgage	4.0			(1.3		)	2.7
Home Equity	1.6			(0.5		)	1.1
Automobile	0.8			(0.1		)	0.7
Other ²	0.8			0.1			0.9
Total Loans and Leases	10.8			(2.5		)	8.3
Other	(0.2		)	0.3			0.1
Total Change in Interest Income	8.4			(3.0		)	5.4

Change in Interest Expense:
Interest-Bearing Deposits
Savings	0.1			—			0.1
Time	(0.3		)	0.2			(0.1		)
Total Interest-Bearing Deposits	(0.2		)	0.2			—
Securities Sold Under Agreements to Repurchase	(0.5		)	0.3			(0.2		)
Other Debt	0.4			—			0.4
Total Change in Interest Expense	(0.3		)	0.5			0.2

Change in Net Interest Income	$	8.7		$	(3.5	)	$	5.2


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



Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8c
	Year Ended December 31, 2015
	Compared to December 31, 2014
(dollars in millions)	Volume ¹			Rate ¹			Total
Change in Interest Income:
Funds Sold	$	0.3		$	0.1		$	0.4
Investment Securities
Available-for-Sale
Taxable	0.3			(1.4		)	(1.1		)
Non-Taxable	0.7			(0.5		)	0.2
Held-to-Maturity
Taxable	(9.3		)	(6.8		)	(16.1		)
Non-Taxable	(0.1		)	(0.1		)	(0.2		)
Total Investment Securities	(8.4		)	(8.8		)	(17.2		)
Loans Held for Sale	0.2			—			0.2
Loans and Leases
Commercial and Industrial	5.9			(2.6		)	3.3
Commercial Mortgage	8.1			(2.1		)	6.0
Construction	0.7			0.4			1.1
Commercial Lease Financing	(0.6		)	1.1			0.5
Residential Mortgage	16.5			(4.2		)	12.3
Home Equity	4.7			(2.4		)	2.3
Automobile	3.3			(0.3		)	3.0
Other ²	3.1			(0.2		)	2.9
Total Loans and Leases	41.7			(10.3		)	31.4
Other	(0.5		)	0.6			0.1
Total Change in Interest Income	33.3			(18.4		)	14.9

Change in Interest Expense:
Interest-Bearing Deposits
Demand	0.1			—			0.1
Savings	0.4			0.1			0.5
Time	(0.7		)	0.2			(0.5		)
Total Interest-Bearing Deposits	(0.2		)	0.3			0.1
Securities Sold Under Agreements to Repurchase	(3.3		)	2.8			(0.5		)
Other Debt	0.5			(0.1		)	0.4
Total Change in Interest Expense	(3.0		)	3.0			—

Change in Net Interest Income	$	36.3		$	(21.4	)	$	14.9


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)	2015		2015		2014			2015		2014
Salaries	$	29,356	$	28,905	$	28,751		$	114,389	$	114,199
Incentive Compensation	4,971		4,223		4,639			18,667		17,471
Share-Based Compensation	2,678		2,616		2,342			10,390		8,808
Commission Expense	1,375		1,639		1,383			6,533		4,831
Retirement and Other Benefits	4,056		4,064		3,947			16,968		16,800
Payroll Taxes	2,032		2,200		2,007			10,095		9,916
Medical, Dental, and Life Insurance	3,077		2,870		2,653			11,580		10,555
Separation Expense	452		59		(202		)	3,341		448
Total Salaries and Benefits	$	47,997	$	46,576	$	45,520		$	191,963	$	183,028



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)		2015		2015		2015		2015		2014
Commercial
	Commercial and Industrial	$	1,115,168	$	1,169,817	$	1,173,259	$	1,141,408	$	1,055,243
	Commercial Mortgage	1,677,147		1,622,119		1,528,685		1,477,902		1,437,513
	Construction	156,660		129,254		118,714		111,381		109,183
	Lease Financing	204,877		202,055		222,113		224,419		226,189
Total Commercial		3,153,852		3,123,245		3,042,771		2,955,110		2,828,128
Consumer
	Residential Mortgage	2,925,605		2,875,605		2,787,847		2,699,434		2,571,090
	Home Equity	1,069,400		993,817		931,191		884,742		866,688
	Automobile	381,735		367,640		352,128		339,686		323,848
	Other ¹	348,393		329,465		314,501		299,656		307,835
Total Consumer		4,725,133		4,566,527		4,385,667		4,223,518		4,069,461
Total Loans and Leases		$	7,878,985	$	7,689,772	$	7,428,438	$	7,178,628	$	6,897,589


Deposits
		December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)		2015		2015		2015		2015		2014
Consumer		$	6,445,510	$	6,254,862	$	6,221,691	$	6,220,391	$	6,092,929
Commercial		5,502,739		5,397,857		5,524,153		5,444,814		5,163,352
Public and Other		1,302,854		1,284,243		1,344,851		1,314,411		1,376,808
Total Deposits		$	13,251,103	$	12,936,962	$	13,090,695	$	12,979,616	$	12,633,089


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
			December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)			2015			2015			2015			2015			2014
Non-Performing Assets
Non-Accrual Loans and Leases
	Commercial
		Commercial and Industrial	$	5,829		$	8,532		$	8,299		$	8,641		$	9,088
		Commercial Mortgage	3,469			1,058			716			732			745
	Total Commercial		9,298			9,590			9,015			9,373			9,833
	Consumer
		Residential Mortgage	14,598			14,749			14,918			14,344			14,841
		Home Equity	4,081			3,814			3,528			2,965			3,097
	Total Consumer		18,679			18,563			18,446			17,309			17,938
Total Non-Accrual Loans and Leases			27,977			28,153			27,461			26,682			27,771
Foreclosed Real Estate			824			1,392			1,989			2,095			2,311
Total Non-Performing Assets			$	28,801		$	29,545		$	29,450		$	28,777		$	30,082

Accruing Loans and Leases Past Due 90 Days or More
Commercial
	Commercial and Industrial		$	—		$	—		$	750		$	—		$	2
Total Commercial			—			—			750			—			2
Consumer
	Residential Mortgage		4,453			5,060			4,789			3,914			4,506
	Home Equity		1,710			1,396			2,395			2,425			2,596
	Automobile		315			631			323			537			616
	Other ¹		1,096			1,058			1,395			1,078			941
Total Consumer			7,574			8,145			8,902			7,954			8,659
Total Accruing Loans and Leases Past Due 90 Days or More			$	7,574		$	8,145		$	9,652		$	7,954		$	8,661
Restructured Loans on Accrual Status
and Not Past Due 90 Days or More			$	49,430		$	49,506		$	48,339		$	46,639		$	45,474
Total Loans and Leases			$	7,878,985		$	7,689,772		$	7,428,438		$	7,178,628		$	6,897,589

Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.36		%	0.37		%	0.37		%	0.37		%	0.40		%

Ratio of Non-Performing Assets to Total Loans and Leases
	and Foreclosed Real Estate		0.37		%	0.38		%	0.40		%	0.40		%	0.44		%

Ratio of Commercial Non-Performing Assets to Total Commercial
	Loans and Leases and Commercial Foreclosed Real Estate		0.29		%	0.31		%	0.32		%	0.34		%	0.38		%

Ratio of Consumer Non-Performing Assets to Total Consumer
	Loans and Leases and Consumer Foreclosed Real Estate		0.41		%	0.44		%	0.45		%	0.44		%	0.47		%

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		0.46		%	0.49		%	0.53		%	0.51		%	0.56		%

Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter			$	29,545		$	29,450		$	28,777		$	30,082		$	33,307
Additions			2,353			4,427			1,909			621			1,885
Reductions
	Payments		(2,473		)	(1,191		)	(1,020		)	(1,427		)	(1,822		)
	Return to Accrual Status		(24		)	(1,748		)	—			(187		)	(1,291		)
	Sales of Foreclosed Real Estate		(458		)	(1,300		)	(83		)	(37		)	(1,480		)
	Charge-offs/Write-downs		(142		)	(93		)	(133		)	(275		)	(517		)
Total Reductions			(3,097		)	(4,332		)	(1,236		)	(1,926		)	(5,110		)
Balance at End of Quarter			$	28,801		$	29,545		$	29,450		$	28,777		$	30,082


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)			2015			2015			2014			2015			2014
Balance at Beginning of Period			$	110,110		$	111,893		$	116,249		$	114,575		$	121,521
Loans and Leases Charged-Off
	Commercial
		Commercial and Industrial	(304		)	(160		)	(205		)	(954		)	(2,002		)
		Lease Financing	—			—			—			—			(66		)
	Consumer
		Residential Mortgage	—			—			(97		)	(613		)	(771		)
		Home Equity	(269		)	(634		)	(293		)	(1,330		)	(1,672		)
		Automobile	(1,719		)	(1,476		)	(1,376		)	(5,860		)	(3,961		)
		Other ¹	(2,170		)	(2,123		)	(1,772		)	(7,682		)	(6,967		)
Total Loans and Leases Charged-Off			(4,462		)	(4,393		)	(3,743		)	(16,439		)	(15,439		)
Recoveries on Loans and Leases Previously Charged-Off
	Commercial
		Commercial and Industrial	420			426			396			1,948			4,625
		Commercial Mortgage	18			15			14			61			57
		Construction	8			8			8			32			29
		Lease Financing	1			55			4			132			10
	Consumer
		Residential Mortgage	577			282			542			1,297			3,448
		Home Equity	349			693			204			2,489			1,637
		Automobile	519			508			467			1,917			1,577
		Other ¹	412			438			434			1,755			2,154
Total Recoveries on Loans and Leases Previously Charged-Off			2,304			2,425			2,069			9,631			13,537
Net Loans and Leases Charged-Off			(2,158		)	(1,968		)	(1,674		)	(6,808		)	(1,902		)
Provision for Credit Losses			1,000			—			—			1,000			(4,864		)
Provision for Unfunded Commitments			—			185			—			185			(180		)
Balance at End of Period ²			$	108,952		$	110,110		$	114,575		$	108,952		$	114,575

Components
Allowance for Loan and Lease Losses			$	102,880		$	104,038		$	108,688		$	102,880		$	108,688
Reserve for Unfunded Commitments			6,072			6,072			5,887			6,072			5,887
Total Reserve for Credit Losses			$	108,952		$	110,110		$	114,575		$	108,952		$	114,575

Average Loans and Leases Outstanding			$	7,785,346		$	7,545,985		$	6,746,332		$	7,423,572		$	6,405,431

Ratio of Net Loans and Leases Charged-Off to
	Average Loans and Leases Outstanding (annualized)		0.11		%	0.10		%	0.10		%	0.09		%	0.03		%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding			1.31		%	1.35		%	1.58		%	1.31		%	1.58		%


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, 2015
Net Interest Income	$	51,628		$	36,652		$	5,341		$	8,023		$	101,644
Provision for Credit Losses	2,373			(209		)	(7		)	(1,157		)	1,000
Net Interest Income After Provision for Credit Losses	49,255			36,861			5,348			9,180			100,644
Noninterest Income	21,268			5,679			14,065			3,754			44,766
Noninterest Expense	(50,111		)	(17,105		)	(14,659		)	(3,852		)	(85,727		)
Income Before Provision for Income Taxes	20,412			25,435			4,754			9,082			59,683
Provision for Income Taxes	(7,233		)	(9,008		)	(1,759		)	1,149			(16,851		)
Net Income	$	13,179		$	16,427		$	2,995		$	10,231		$	42,832
Total Assets as of December 31, 2015	$	4,680,888		$	3,099,132		$	274,469		$	7,400,527		$	15,455,016


Three Months Ended December 31, 2014 ¹
Net Interest Income	$	47,509		$	32,721		$	4,140		$	12,262		$	96,632
Provision for Credit Losses	1,888			(205		)	(10		)	(1,673		)	—
Net Interest Income After Provision for Credit Losses	45,621			32,926			4,150			13,935			96,632
Noninterest Income	20,089			6,018			14,390			5,321			45,818
Noninterest Expense	(49,673		)	(16,926		)	(13,192		)	(1,449		)	(81,240		)
Income Before Provision for Income Taxes	16,037			22,018			5,348			17,807			61,210
Provision for Income Taxes	(5,831		)	(7,609		)	(1,982		)	(4,597		)	(20,019		)
Net Income	$	10,206		$	14,409		$	3,366		$	13,210		$	41,191
Total Assets as of December 31, 2014 ¹	$	4,088,878		$	2,787,537		$	202,645		$	7,708,148		$	14,787,208


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, 2015
Net Interest Income	$	202,259		$	143,944		$	18,494		$	29,390		$	394,087
Provision for Credit Losses	8,033			(1,165		)	(43		)	(5,825		)	1,000
Net Interest Income After Provision for Credit Losses	194,226			145,109			18,537			35,215			393,087
Noninterest Income	82,391			21,804			58,835			23,189			186,219
Noninterest Expense	(199,572		)	(76,891		)	(57,852		)	(13,789		)	(348,104		)
Income Before Provision for Income Taxes	77,045			90,022			19,520			44,615			231,202
Provision for Income Taxes	(27,330		)	(31,457		)	(7,222		)	(4,489		)	(70,498		)
Net Income	$	49,715		$	58,565		$	12,298		$	40,126		$	160,704
Total Assets as of December 31, 2015	$	4,680,888		$	3,099,132		$	274,469		$	7,400,527		$	15,455,016


Year Ended December 31, 2014 ¹
Net Interest Income	$	178,480		$	119,655		$	15,238		$	66,283		$	379,656
Provision for Credit Losses	4,783			(2,369		)	(313		)	(6,965		)	(4,864		)
Net Interest Income After Provision for Credit Losses	173,697			122,024			15,551			73,248			384,520
Noninterest Income	79,562			23,635			57,618			19,202			180,017
Noninterest Expense	(196,254		)	(66,760		)	(54,571		)	(9,314		)	(326,899		)
Income Before Provision for Income Taxes	57,005			78,899			18,598			83,136			237,638
Provision for Income Taxes	(21,079		)	(26,952		)	(6,894		)	(19,671		)	(74,596		)
Net Income	$	35,926		$	51,947		$	11,704		$	63,465		$	163,042
Total Assets as of December 31, 2014 ¹	$	4,088,878		$	2,787,537		$	202,645		$	7,708,148		$	14,787,208


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)	2015				2015			2015			2015			2014
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	78,122			$	75,874		$	73,565		$	70,961		$	69,974
Income on Investment Securities
Available-for-Sale	10,829				10,192			10,273			10,198			10,732
Held-to-Maturity	21,722				20,689			22,832			24,407			24,966
Deposits	1				2			2			3			2
Funds Sold	315				291			268			259			192
Other	381				312			310			302			303
Total Interest Income	111,370				107,360			107,250			106,130			106,169
Interest Expense
Deposits	2,443				2,410			2,405			2,368			2,392
Securities Sold Under Agreements to Repurchase	6,246				6,307			6,440			6,371			6,520
Funds Purchased	3				3			3			3			3
Other Debt	1,034				749			620			618			622
Total Interest Expense	9,726				9,469			9,468			9,360			9,537
Net Interest Income	101,644				97,891			97,782			96,770			96,632
Provision for Credit Losses	1,000				—			—			—			—
Net Interest Income After Provision for Credit Losses	100,644				97,891			97,782			96,770			96,632
Noninterest Income
Trust and Asset Management	11,243				11,907			12,355			12,180			12,225
Mortgage Banking	3,130				3,291			3,469			1,693			2,116
Service Charges on Deposit Accounts	8,663				8,669			8,203			8,537			9,058
Fees, Exchange, and Other Service Charges	13,764				13,340			13,352			12,897			13,702
Investment Securities Gains, Net	(181		)		24			86			10,231			1,966
Annuity and Insurance	2,014				1,721			1,885			2,044			1,664
Bank-Owned Life Insurance	1,608				1,609			2,088			1,734			1,874
Other	4,525				2,660			4,487			2,991			3,213
Total Noninterest Income	44,766				43,221			45,925			52,307			45,818
Noninterest Expense
Salaries and Benefits	47,997				46,576			47,610			49,780			45,520
Net Occupancy	4,876				7,403			8,605			9,333			9,291
Net Equipment	5,244				4,804			4,826			5,288			4,734
Data Processing	5,106				3,920			3,673			3,773			3,823
Professional Fees	2,803				2,258			2,265			2,334			3,086
FDIC Insurance	2,322				2,139			2,068			2,140			2,055
Other	17,379				24,788			14,527			14,267			12,731
Total Noninterest Expense	85,727				91,888			83,574			86,915			81,240
Income Before Provision for Income Taxes	59,683				49,224			60,133			62,162			61,210
Provision for Income Taxes	16,851				14,948			18,979			19,720			20,019
Net Income	$	42,832			$	34,276		$	41,154		$	42,442		$	41,191

Basic Earnings Per Share	$	1.00			$	0.79		$	0.95		$	0.98		$	0.95
Diluted Earnings Per Share	$	0.99			$	0.79		$	0.95		$	0.97		$	0.94

Balance Sheet Totals
Loans and Leases	$	7,878,985			$	7,689,772		$	7,428,438		$	7,178,628		$	6,897,589
Total Assets	15,455,016				15,164,123			15,248,043			15,139,179			14,787,208
Total Deposits	13,251,103				12,936,962			13,090,695			12,979,616			12,633,089
Total Shareholders' Equity	1,116,260				1,098,354			1,082,939			1,075,251			1,055,086

Performance Ratios
Return on Average Assets	1.11			%	0.89		%	1.10		%	1.15		%	1.12		%
Return on Average Shareholders' Equity	15.41				12.45			15.33			16.18			15.39
Efficiency Ratio ¹	58.55				65.12			58.16			58.30			57.03
Net Interest Margin ²	2.85				2.77			2.81			2.81			2.84


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, 2015				December 31, 2014						December 31, 2013
Hawaii Economic Trends
State General Fund Revenues ¹	$	5,495.9	8.1	%	$	5,535.7		1.6		%	$	5,450.6		3.7		%
General Excise and Use Tax Revenue ¹	$	2,884.2	4.8	%	$	2,979.8		2.5		%	$	2,907.6		2.2		%
Jobs ²	657.8				643.7						629.9

								November 30,			December 31,
(spot rates)								2015			2014			2013
Unemployment ³
Statewide, seasonally adjusted								3.2		%	4.0		%	4.7		%

Oahu								3.0			3.5			3.8
Island of Hawaii								4.1			4.7			5.9
Maui								3.4			3.8			4.7
Kauai								3.9			4.3			5.2

					December 31,			December 31,
(percentage change, except months of inventory)					2015			2014			2013			2012
Housing Trends (Single Family Oahu) ⁴
Median Home Price					3.7		%	3.8		%	4.8		%	7.8		%
Home Sales Volume (units)					5.2		%	(0.8	)	%	4.6		%	6.5		%
Months of Inventory					2.6			2.6			2.7			2.5

					Monthly Visitor Arrivals,						Percentage Change
(in thousands)					Not Seasonally Adjusted						from Previous Year
Tourism ⁵
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								765.3						6.2
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
December 31, 2013								720.8						(1.8	)
November 30, 2013								624.1						(4.2	)
October 31, 2013								640.3						(0.1	)
September 30, 2013								597.7						0.5
August 31, 2013								748.8						2.5
July 31, 2013								758.0						4.6
June 30, 2013								716.6						5.5
May 31, 2013								637.5						2.4
April 30, 2013								667.0						3.1
March 31, 2013								769.1						7.6
February 28, 2013								675.5						7.8
January 31, 2013								681.9						5.9

¹ Source: Hawaii Department of Business, Economic Development & Tourism
² Source: U. S. Bureau of Labor
³ Source: Hawaii Department of Labor and Industrial Relations, County jobs data not seasonally adjusted.
⁴ Source: Honolulu Board of REALTORS
⁵ Source: Hawaii Tourism Authority
Note: Certain prior period seasonally adjusted information has been revised.

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