8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report
(Date of earliest event reported)	July 25, 2008

BANK OF HAWAII CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-6887	99-0148992
(State of Incorporation)	(Commission	(IRS Employer
	File Number)	Identification No.)
130 Merchant Street, Honolulu, Hawaii		96813
(Address of principal executive offices)		(Zip Code)

(Registrant’s telephone number,
including area code)	(808) 694-8822

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

Item 2.02.Results of Operations and Financial Conditions.

On July 28, 2008, Bank of Hawaii Corporation announced its results of operations for the quarter ending June 30, 2008.  The public announcement was made by means of a press release, the text of which is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.

Item 5.02Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(e)  On April 25, 2008, stockholders approved an amendment to the Articles of Incorporation to eliminate the classified board of directors.  As a result of that change, each director serves a one year term, or until his or her successor is elected and qualified.

The Board has concluded that that it is appropriate to realign the Board’s equity compensation program to reflect the change in Board structure.  Prior to 2005, awards of restricted stock to Directors generally vested when the Director’s last term expires.  In the case of Director option grants prior to the 2005, the stock issued upon exercise was restricted stock subject to the same vesting conditions as awards of restricted stock.

Stockholders approved an amendment and restatement of the Director Stock Compensation Plan (the “Plan”) at the 2005 annual meeting.  Restricted stock awards issued in 2005 through 2007 under the Plan have included a three-year cliff vesting provision; restricted stock awards beginning in 2008 have a one-year vesting provision.  Stock options have not been granted to Directors under the Plan since 2006.  The stock options granted under the Plan between 2005 and 2006 vest in equal annual installments over a three-year period.

On July 25, 2008, the Board approved offering to its Directors the opportunity to amend the terms of restricted stock and option awards granted under the Plan prior to 2005 to (i) accelerate to October 1, 2008 the vesting of any outstanding restricted stock granted prior to 2005 (including any restricted stock that a Director may have acquired pursuant to the exercise of options granted prior to 2005), and (ii) eliminate restrictions on shares received upon exercise of outstanding options granted prior to 2005.

The Company does not expect to recognize any expense as a result of these amendments.

On July 25, 2008, the Company appointed Kent T. Lucien Chief Financial Officer.  Mr. Lucien has served as Chief Financial Officer on an interim basis since April 2008.  In connection with the appointment of Mr. Lucien as Chief Financial Officer, the Human Resources and Compensation Committee approved a restricted stock grant award of 7,500 shares of Bank of Hawaii Corporation common stock under the Bank of Hawaii Corporation 2004 Stock and Incentive Plan.

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Item 9.01.                    Financial Statements and Exhibits

(d)                 Exhibits

Exhibit No.
10.1	Board Resolution for Amendment to Restricted Stock and Option Awards under the Director Stock Compensation Program.
99.1	July 28, 2008 Press Release

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:  July 28, 2008	BANK OF HAWAII CORPORATION
	By:	/s/ Mark A. Rossi
		Mark A. Rossi
		Vice Chairman and Corporate Secretary

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EX-10.1

Exhibit 10.1

RESOLUTION OF

THE BOARD OF DIRECTORS

OF

BANK OF HAWAII CORPORATION

WHEREAS, Bank of Hawaii Corporation (the “Company”) maintains the Bank of Hawaii Corporation Amended and Restated Director Stock Compensation Plan (including any predecessor plan, the “Plan”);

WHEREAS, the Board has determined that it is desirable to amend the terms of restricted stock awards granted under the Plan prior to the Company’s 2005 annual meeting of shareholders that are outstanding as of October 1, 2008 (“Restricted Stock”), including Restricted Stock issued upon the exercise of stock options granted under the Plan prior to the Company’s 2005 annual meeting of shareholders (“Options”), so that all such Restricted Stock, to the extent it has not previously vested, becomes fully vested on October 1, 2008; and

WHEREAS, the Board has further determined that it is desirable to amend the terms of any Options that are outstanding as of October 1, 2008 so that fully vested shares (rather than shares of restricted stock) are issued upon the exercise of such Options;

NOW THEREFORE, BE IT:

RESOLVED, that the officers of the Company be, and each of them hereby is, authorized and empowered to enter into, in the name and on behalf of the Company, amendment agreements with each member of the Board who wishes to do so and who holds shares of Restricted Stock and/or Options to provide that, notwithstanding anything to the contrary in the applicable award agreements:

1.             The “Restriction Period” (as defined in the applicable award agreement) applicable to Restricted Stock (including any Restricted Stock acquired pursuant to the exercise of Options) shall, to the extent it has not previously terminated, terminate on October 1, 2008.

2.             Effective October 1, 2008, no “Restriction Period” shall apply to any shares theretofore or thereafter issued upon the exercise of any Option.

3.             Notwithstanding the provisions of items 1 and 2 above, to the extent the terms of a Restricted Stock or Option award would result in the lapsing of restrictions or the acceleration of vesting (as applicable) on an earlier date than the date provided in such provisions, such restrictions shall lapse on, or such vesting shall accelerate to, such earlier date instead.

FURTHER RESOLVED, that the Plan (including the Company’s Director Stock Compensation Program of which the Plan is a successor) shall be deemed to be, and hereby is, amended to the extent necessary to effectuate the amendments to outstanding award agreements authorized by the foregoing resolution.

FURTHER RESOLVED, that the officers of the Company be, and each of them individually hereby is, authorized and empowered, in the name and on behalf of the Company, to take such actions, and to execute and deliver any and all agreements, instruments and other documents, that such officer or officers deems necessary, appropriate or convenient to effectuate the purpose and intent of the foregoing resolutions.

EX-99.1

Exhibit 99.1

NYSE: BOH

	Media Inquiries
	Stafford Kiguchi
	Telephone: 808-694-8580
	Mobile: 808-265-6367
	E-mail: Stafford.Kiguchi@boh.com
	Investor/Analyst Inquiries
	Cindy Wyrick
	Telephone: 808-694-8430
	E-mail: Cindy.Wyrick@boh.com

Bank of Hawaii Corporation Second Quarter 2008 Financial Results

·Diluted Earnings Per Share $1.00

·Net Income for the Quarter $48.3 Million

·Board of Directors Declares Dividend of $0.44 Per Share

FOR IMMEDIATE RELEASE

HONOLULU, HI (July 28, 2008) — Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $1.00 for the second quarter of 2008, an increase of $0.05 or 5.3 percent from diluted earnings per share of $0.95 in the same quarter last year.  Net income for the second quarter of 2008 was $48.3 million, up $0.6 million or 1.2 percent from net income of $47.7 million in the second quarter of 2007.

The return on average assets for the second quarter of 2008 was 1.85 percent, up from 1.84 percent during the same quarter last year.  The return on average equity for the second quarter of 2008 was 24.82 percent compared to 26.30 percent for the second quarter of 2007.  The efficiency ratio for the second quarter of 2008 was 50.01 percent compared to 50.88 percent in the second quarter last year.

“Financial performance for Bank of Hawaii Corporation during the first half of 2008 continued to be strong,” said Allan R. Landon, Chairman and CEO.  “Our net interest margin expanded, noninterest revenue improved and core expenses remain controlled.  Asset quality remained solid and net charge-offs decreased from the previous quarter.  We further strengthened our reserves as higher oil prices increase the risk in our legacy air transportation leasing portfolio.  We are maintaining our disciplined approach to credit and balance sheet management as the Hawaii economy slows.”

For the six months ended June 30, 2008, net income was $105.5 million, up $10.4 million compared to net income of $95.1 million for the same period last year.  Diluted earnings per share were $2.18 for the first half of 2008, up from diluted earnings per share of $1.89 for the first half of 2007.  Results for 2008 include $25.3 million from the redemption of Visa shares and a lessee’s early buy-out of an aircraft lease, which were recorded in the first quarter of 2008.  Partially offsetting these gains were expenses for employee incentives, legal contingencies, a call premium

- more -

130 Merchant Street · PO Box 2900 · Honolulu HI 96846-6000 · Fax 808-537-8440 · Website www.boh.com

on Capital Securities, an increase in the allowance for loan and lease losses, and contributions to the Bank of Hawaii Charitable Foundation.  The net effect was an increase in net income for 2008 of $9.5 million or $0.20 per diluted share.  Details of these items are included in Table 2.   Financial results for the first half of 2007 included a $1.5 million credit related to resolution with the Internal Revenue Service of a Lease In/Lease Out (“LILO”) leveraged lease.

The year-to-date return on average assets was 2.01 percent, up from 1.84 percent for the same six months in 2007.  The year-to-date return on average equity was 27.33 percent, up from 26.64 percent for the six months ended June 30, 2007.  The efficiency ratio for the first half of 2008 was 49.80 percent, down from 51.25 percent in the same period last year.  Adjusted for the income and expense items previously discussed, the efficiency ratio for the first half of 2008 was 50.51 percent.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the second quarter of 2008 was $107.4 million, up $8.3 million from net interest income of $99.1 million in the second quarter of 2007 and up $5.0 million from net interest income of $102.4 million in the first quarter of 2008.  Net interest income in the second quarter of 2007 included a $1.1 million credit related to the previously mentioned settlement of the LILO leveraged lease.  For the six-month period ended June 30, 2008, net interest income, on a taxable equivalent basis, was $209.8 million compared to $197.5 million for the same period in 2007.  Analyses of the changes in net interest income are included in Tables 7a, 7b and 7c.

The net interest margin was 4.41 percent for the second quarter of 2008, a 29 basis point increase from 4.12 percent in the second quarter of 2007 and a 24 basis point increase from 4.17 percent in the first quarter of 2008.   For the six months ended June 30, 2008, the net interest margin was 4.29 percent compared to 4.09 percent for the same six months in 2007.  The increase in the net interest margin was primarily due to lower funding costs in 2008.

Results for the second quarter of 2008 included a provision for credit losses of $7.2 million compared with $3.4 million in the second quarter of 2007 and $14.4 million in the first quarter of 2008.  The provision for credit losses exceeded net charge-offs of $4.7 million by $2.5 million in the second quarter of 2008.  The provision for credit losses equaled net charge-offs in the second quarter of last year and exceeded net charge-offs by $9.0 million in the first quarter of 2008.

Noninterest income was $60.5 million for the second quarter of 2008, an increase of $2.5 million compared to $58.0 million in the second quarter of 2007 and a decrease of $25.6 million compared to $86.1 million in the first quarter of 2008.  Noninterest income in the first quarter of 2008 included the previously mentioned gains of $25.3 million related to the Visa share redemption and the disposition of an aircraft lease.

Noninterest expense was $83.9 million in the second quarter of 2008, up $4.0 million from noninterest expense of $79.8 million in the same quarter last year and down $9.6 million from $93.4 million in the previous quarter.  Noninterest expense in the first quarter of 2008 included a reversal of $5.6 million related to Visa litigation, accruals of $9.0 million for employee incentives, $3.0 million for legal contingencies, $2.3 million for charitable contributions, $1.0 million for the call premium, and $0.6 million for separation costs.  Adjusted for these items, noninterest expense was $83.2 million in the first quarter of 2008.  An analysis of salary and benefit expenses is included in Table 8.

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The effective tax rate for the second quarter of 2008 was 37.03 percent compared to 35.25 percent during the same quarter last year and 28.88 percent in the previous quarter.  The lower effective tax rate in the first quarter of 2008 was primarily due to the disposition of an aircraft lease.  The effective tax rate for the second quarter of 2007 included a $0.4 million net credit due to the previously mentioned IRS tax settlement.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services, and Treasury.  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 12a and 12b.

Asset Quality

The Company’s overall asset quality remained solid during the three months ended June 30, 2008 with low levels of non-performing assets and a reduction in accruing loans and leases past due 90 days or more.

Non-accrual loans and leases were $6.5 million at June 30, 2008, up from $6.3 million at June 30, 2007 and up from $5.8 million at March 31, 2008.  As a percentage of total loans and leases, non-accrual loans at June 30, 2008 of 0.10 percent remain near historic lows.

Total non-performing assets were $6.7 million at the end of the second quarter of 2008, up from $6.3 million at the end of the same quarter last year and up from $6.0 million at the end of the previous quarter.  The ratio of non-performing assets to total loans and foreclosed real estate at June 30, 2008 was 0.10 percent, unchanged from June 30, 2007 and up from 0.09 percent at March 31, 2008.

Accruing loans and leases past due 90 days or more were $4.2 million at June 30, 2008, up from $1.4 million at June 30, 2007 and down from $5.8 million at March 31, 2008. The ratio of total non-performing assets and loans 90 days or more past due to total loans at June 30, 2008 was 0.17 percent, up from 0.12 percent at June 30, 2007 and down from 0.18 percent at March 31, 2008.  Details of non-performing assets and accruing loans and leases past due 90 days or more are summarized in Table 10.

Net charge-offs during the second quarter of 2008 were $4.7 million or 0.29 percent annualized of total average loans and leases.  Net charge-offs increased $1.3 million compared to $3.4 million, or 0.21 percent annualized, during the same quarter last year and were down $0.8 million compared to $5.4 million, or 0.33 percent annualized, in the previous quarter.  The decrease compared to the previous quarter was largely due to lower charge-offs in the indirect automobile and unsecured consumer installment portfolios.  Net charge-offs for the six months ended June 30, 2008 were $10.1 million, or 0.31 percent annualized of total average loans and leases compared to $6.0 million, or 0.18 percent annualized of total average loans and leases for the same period last year.  Net charge-offs for the first six months of 2007 included a partial recovery of $2.1 million on an aircraft lease, which was charged off in 2005.

The allowance for loan and lease losses increased to $102.5 million at June 30, 2008, up from $91.0 million at June 30, 2007 and up from $100.0 million at March 31, 2008.  The ratio of the allowance for loan and lease losses to total loans was 1.57 percent at June 30, 2008, an increase from 1.39 percent at June 30, 2007 and from 1.52 percent at March 31, 2008.  The increase in the

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allowance for loan and lease losses from March 31, 2008 reflects elevated risk in the Company’s air transportation exposure due to the unprecedented rise in oil prices.  The reserve for unfunded commitments at June 30, 2008 was $5.2 million, unchanged from June 30, 2007 and from March 31, 2008.  Details of charge-offs, recoveries and the components of the total reserve for credit losses are summarized in Table 11.

Other Financial Highlights

Total assets were $10.37 billion at June 30, 2008, down $351 million from $10.72 billion at June 30, 2007 and down $452 million from $10.82 billion at March 31, 2008.  The decrease compared with the previous quarters was largely due to a reduction in funds sold.

Total loans and leases were $6.52 billion at June 30, 2008, down $48 million from $6.57 billion at June 30, 2007 and down $61 million from $6.58 billion at March 31, 2008.  Average loans and leases were $6.53 billion during the second quarter of 2008, essentially unchanged from the second quarter last year and down $56 million from $6.59 billion during the previous quarter.

Total commercial loans were $2.37 billion at June 30, 2008, down $53 million from $2.43 billion at June 30, 2007 and down $14 million from $2.39 billion at March 31, 2008.  The decrease was largely due to a reduction in construction lending.  Construction loans were $169 million at June 30, 2008, down $93 million from $261 million at June 30, 2007 and down $22 million from $191 million at March 31, 2008.

Total consumer loans were $4.14 billion at June 30, 2008, essentially unchanged from June 30, 2007 and down $48 million from $4.19 billion at March 31, 2008.  The decrease compared with the previous quarter was largely due to a reduction in residential first mortgages, automobile loans and unsecured consumer installment loans.  Loan and lease portfolio balances are summarized in Table 9.

Total deposits were $7.90 billion at June 30, 2008, down $410 million from $8.31 billion at June 30, 2007 and down $199 million from $8.10 billion at March 31, 2008.  Total deposits decreased near the end of the second quarter largely due to the release of escrow deposits following completion of a large construction project.  Average deposits were $7.96 billion during the second quarter of 2008, up $148 million from $7.81 billion during the second quarter last year and up $6 million from $7.95 billion during the previous quarter.

During the second quarter of 2008, the Company repurchased 220.0 thousand shares of common stock at a total cost of $11.4 million under its share repurchase program.  The average cost was $51.70 per share repurchased.  From the beginning of the share repurchase program in July 2001 through June 30, 2008, the Company had repurchased 45.2 million shares and returned nearly $1.6 billion to shareholders at an average cost of $35.35 per share.  From July 1, 2008 through July 25, 2008, the Company repurchased an additional 181.0 thousand shares of common stock at an average cost of $45.19 per share.  Remaining buyback authority under the share repurchase program was $43.4 million at July 25, 2008.

On May 15, 2008, the Company exercised its option to call the remaining $26.4 million of Capital Securities, previously qualified as Tier I Capital.  At June 30, 2008, the Tier 1 leverage ratio was 7.04 percent, up slightly from 7.02 percent at June 30, 2007 and up from 6.99 percent at March 31, 2008.

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The Company’s Board of Directors declared a quarterly cash dividend of $0.44 per share on the Company’s outstanding shares, consistent with the prior three quarters.  The dividend will be payable on September 15, 2008 to shareholders of record at the close of business on August 29, 2008.

Hawaii Economy

During the second quarter of 2008, Hawaii’s economic activity slowed.  The State’s unemployment rate increased to 3.5 percent, still among the lowest in the United States.  Visitor arrivals during April and May decreased approximately 7.0 percent, largely due to the shutdown of two airlines and reduced cruise ship activity.  Single-family home prices were down slightly on Oahu and showed further decline on Neighbor Islands.  Oahu home prices during the quarter averaged 4.4 percent below prices one year ago and were essentially unchanged from the same period in 2006.  Residential and commercial construction appears to be softening.  Inflation in Hawaii likely increased during the quarter because of rising energy and food costs.

Conference Call Information

The Company will review its second quarter 2008 financial results today at 8:00 a.m. Hawaii Time (2:00 p.m. Eastern Time).  The conference call will be accessible via teleconference and via the Investor Relations link of Bank of Hawaii Corporation’s web site, www.boh.com.  The conference call number for participants in the United States is 866-700-5192.  International participants should call 617-213-8833.  No pass code is required.  A replay of the conference call will be available for one week beginning Monday, July 28, 2008 by calling 888-286-8010 in the United States or 617-801-6888 internationally and entering the pass code number 40631649 when prompted.  A replay will also be available via the Investor Relations link of the Company’s web site.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain “forward-looking statements”, such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations.  Do not unduly rely on forward-looking statements.  Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation’s Annual Report on Form 10-K for the year ended December 31, 2007, which was filed with the U.S. Securities and Exchange Commission.  We have not committed to update forward-looking statements to reflect later events or circumstances.

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

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Bank of Hawaii Corporation and Subsidiaries

Financial Highlights (Unaudited)										Table 1
	Three Months Ended							Six Months Ended
	June 30,			March 31,		June 30,		June 30,
(dollars in thousands, except per share amounts)	2008			2008		2007		2008		2007
For the Period:
Net Interest Income	$	107,168		$	102,180	$	98,878	$	209,348	$	197,015
Total Noninterest Income	60,539			86,125		58,028		146,664		118,988
Total Noninterest Expense	83,862			93,432		79,832		177,294		161,955
Net Income	48,282			57,215		47,729		105,497		95,064
Basic Earnings Per Share	1.01			1.19		0.97		2.20		1.93
Diluted Earnings Per Share	1.00			1.18		0.95		2.18		1.89
Dividends Declared Per Share	0.44			0.44		0.41		0.88		0.82
Net Income to Average Total Assets	1.85%			2.16%		1.84%		2.01%		1.84%
Net Income to Average Shareholders’ Equity	24.82			29.88		26.30		27.33		26.64
Efficiency Ratio 1	50.01			49.62		50.88		49.80		51.25
Operating Leverage 2	(11.62		)	40.13		0.13		16.01		3.90
Net Interest Margin 3	4.41			4.17		4.12		4.29		4.09
Dividend Payout Ratio 4	43.56			36.97		42.27		40.00		42.49
Average Loans and Leases	$	6,531,587		$	6,587,918	$	6,532,736	$	6,559,753	$	6,547,212
Average Assets	10,504,421			10,643,904		10,383,030		10,574,162		10,432,130
Average Deposits	7,958,171			7,952,546		7,810,089		7,955,360		7,865,469
Average Shareholders’ Equity	782,429			770,157		727,887		776,293		719,549
Average Shareholders’ Equity to Average Assets	7.45%			7.24%		7.01%		7.34%		6.90%
Market Price Per Share of Common Stock:
Closing	$	47.80		$	49.56	$	51.64	$	47.80	$	51.64
High	57.37			52.93		55.00		57.37		55.00
Low	46.62			40.95		50.64		40.95		50.11

	June 30,		March 31,		December 31,		June 30,
	2008		2008		2007		2007
As of Period End:
Loans and Leases	$	6,518,128	$	6,579,337	$	6,580,861	$	6,566,126
Total Assets	10,371,149		10,822,801		10,472,942		10,722,568
Total Deposits	7,903,990		8,102,855		7,942,372		8,314,404
Long-Term Debt	205,351		239,389		235,371		260,329
Total Shareholders’ Equity	767,558		766,747		750,255		708,806
Non-Performing Assets	$	6,680	$	6,045	$	5,286	$	6,314
Allowance to Loans and Leases Outstanding	1.57%		1.52%		1.38%		1.39%
Leverage Ratio	7.04		6.99		7.04		7.02
Book Value Per Common Share	$	16.01	$	15.98	$	15.44	$	14.34
Full-Time Equivalent Employees	2,534		2,538		2,594		2,571
Branches and Offices	84		83		83		83

1Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).

2Operating leverage is defined as the percentage change in income before the provision for credit losses and the provision for income taxes.  Measures are presented on a linked quarter basis.

3Net interest margin is defined as net interest income, on a taxable equivalent basis, as a percentage of average earning assets.

4Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.

Bank of Hawaii Corporation and Subsidiaries

Net Significant Income Items (Unaudited)	Table 2
	Three Months Ended
	March 31,
(dollars in thousands)	2008
Gain on Mandatory Redemption of Visa Shares	$	13,737
Gain on Disposal of Leased Equipment	11,588
Increase in Allowance for Loan and Lease Losses	(9,000		)
Cash for Stock Grants	(4,640		)
Employee Incentive Awards	(4,386		)
Legal Contingencies	(3,016		)
Bank of Hawaii Charitable Foundation and Other Contributions	(2,250		)
Call Premium on Capital Securities	(991		)
Separation Expense	(615		)
Reversal of Visa Legal Costs	5,649
Significant Income Items Before the Benefit for Income Taxes	6,076
Benefit for Income Taxes	(3,381		)
Net Significant Income Items	$	9,457

Bank of Hawaii Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)									Table 3
	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,
(dollars in thousands, except per share amounts)	2008		2008		2007		2008		2007
Interest Income
Interest and Fees on Loans and Leases	$	97,959	$	104,413	$	112,026	$	202,372	$	222,324
Income on Investment Securities
Trading	1,209		1,160		1,357		2,369		2,975
Available-for-Sale	35,321		34,251		31,563		69,572		62,524
Held-to-Maturity	3,033		3,239		3,827		6,272		7,879
Deposits	204		195		96		399		154
Funds Sold	420		992		533		1,412		1,591
Other	489		426		364		915		697
Total Interest Income	138,635		144,676		149,766		283,311		298,144
Interest Expense
Deposits	20,238		27,465		33,701		47,703		67,076
Securities Sold Under Agreements to Repurchase	7,488		10,617		11,665		18,105		23,551
Funds Purchased	270		633		1,452		903		2,375
Short-Term Borrowings	12		34		91		46		178
Long-Term Debt	3,459		3,747		3,979		7,206		7,949
Total Interest Expense	31,467		42,496		50,888		73,963		101,129
Net Interest Income	107,168		102,180		98,878		209,348		197,015
Provision for Credit Losses	7,172		14,427		3,363		21,599		5,994
Net Interest Income After Provision for Credit Losses	99,996		87,753		95,515		187,749		191,021
Noninterest Income
Trust and Asset Management	15,460		15,086		16,135		30,546		31,968
Mortgage Banking	2,738		4,297		2,479		7,035		5,850
Service Charges on Deposit Accounts	12,411		12,083		11,072		24,494		22,039
Fees, Exchange, and Other Service Charges	17,176		16,101		16,556		33,277		32,617
Investment Securities Gains, Net	157		130		575		287		591
Insurance	5,590		7,130		4,887		12,720		11,102
Other	7,007		31,298		6,324		38,305		14,821
Total Noninterest Income	60,539		86,125		58,028		146,664		118,988
Noninterest Expense
Salaries and Benefits	45,984		55,473		44,587		101,457		89,993
Net Occupancy	11,343		10,443		9,695		21,786		19,506
Net Equipment	4,474		4,321		4,871		8,795		9,658
Professional Fees	2,588		2,613		2,599		5,201		5,142
Other	19,473		20,582		18,080		40,055		37,656
Total Noninterest Expense	83,862		93,432		79,832		177,294		161,955
Income Before Provision for Income Taxes	76,673		80,446		73,711		157,119		148,054
Provision for Income Taxes	28,391		23,231		25,982		51,622		52,990
Net Income	$	48,282	$	57,215	$	47,729	$	105,497	$	95,064
Basic Earnings Per Share	$	1.01	$	1.19	$	0.97	$	2.20	$	1.93
Diluted Earnings Per Share	$	1.00	$	1.18	$	0.95	$	2.18	$	1.89
Dividends Declared Per Share	$	0.44	$	0.44	$	0.41	$	0.88	$	0.82
Basic Weighted Average Shares	47,733,278		47,965,722		49,276,820		47,849,945		49,351,959
Diluted Weighted Average Shares	48,300,049		48,628,427		50,077,219		48,423,619		50,173,856

Bank of Hawaii Corporation and Subsidiaries

Consolidated Statements of Condition (Unaudited)			Table 4
	June 30,				March 31,			December 31,			June 30,
(dollars in thousands)	2008				2008			2007			2007
Assets
Interest-Bearing Deposits	$	6,056			$	55,916		$	4,870		$	130,732
Funds Sold	-				240,000			15,000			200,000
Investment Securities
Trading	94,347				99,966			67,286			123,591
Available-for-Sale	2,646,506				2,672,286			2,563,190			2,455,668
Held-to-Maturity (Fair Value of $255,905; $277,536; $287,644; and $313,589)	260,592				277,256			292,577			327,118
Loans Held for Sale	11,183				13,096			12,341			13,527
Loans and Leases	6,518,128				6,579,337			6,580,861			6,566,126
Allowance for Loan and Lease Losses	(102,498			)	(99,998		)	(90,998		)	(90,998		)
Net Loans and Leases	6,415,630				6,479,339			6,489,863			6,475,128
Total Earning Assets	9,434,314				9,837,859			9,445,127			9,725,764
Cash and Noninterest-Bearing Deposits	280,635				314,863			368,402			345,226
Premises and Equipment	117,323				116,683			117,177			122,929
Customers’ Acceptances	1,856				992			1,112			2,234
Accrued Interest Receivable	42,295				46,316			45,261			49,121
Foreclosed Real Estate	229				294			184			48
Mortgage Servicing Rights	30,272				27,149			27,588			29,112
Goodwill	34,959				34,959			34,959			34,959
Other Assets	429,266				443,686			433,132			413,175
Total Assets	$	10,371,149			$	10,822,801		$	10,472,942		$	10,722,568
Liabilities
Deposits
Noninterest-Bearing Demand	$	1,876,782			$	2,000,226		$	1,935,639		$	1,896,335
Interest-Bearing Demand	1,666,726				1,649,705			1,634,675			1,755,646
Savings	2,781,082				2,728,873			2,630,471			2,923,168
Time	1,579,400				1,724,051			1,741,587			1,739,255
Total Deposits	7,903,990				8,102,855			7,942,372			8,314,404
Funds Purchased	69,400				23,800			75,400			90,650
Short-Term Borrowings	10,180				9,726			10,427			15,644
Securities Sold Under Agreements to Repurchase	1,028,518				1,231,962			1,029,340			910,302
Long-Term Debt (includes $121,326 and $128,932 carried at fair value as of June 30, 2008 and March 31, 2008, respectively)	205,351				239,389			235,371			260,329
Banker’s Acceptances	1,856				992			1,112			2,234
Retirement Benefits Payable	29,478				29,755			29,984			43,892
Accrued Interest Payable	13,588				18,322			20,476			18,292
Taxes Payable and Deferred Taxes	250,125				300,188			278,218			277,516
Other Liabilities	91,105				99,065			99,987			80,499
Total Liabilities	9,603,591				10,056,054			9,722,687			10,013,762
Shareholders’ Equity
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 2008 - 57,016,182 / 47,941,409; March 2008 - 56,995,352 / 47,990,432; December 2007 - 56,995,447 / 48,589,645; and June 2007 - 56,927,022 / 49,440,204)	568				568			567			566
Capital Surplus	489,335				487,139			484,790			480,389
Accumulated Other Comprehensive Income (Loss)	(15,813			)	5,553			(5,091		)	(45,705		)
Retained Earnings	745,244				720,540			688,638			645,149
Treasury Stock, at Cost (Shares: June 2008 - 9,074,773; March 2008 - 9,004,920; December 2007 - 8,405,802; and June 2007 - 7,486,818)	(451,776			)	(447,053		)	(418,649		)	(371,593		)
Total Shareholders’ Equity	767,558				766,747			750,255			708,806
Total Liabilities and Shareholders’ Equity	$	10,371,149			$	10,822,801		$	10,472,942		$	10,722,568

Bank of Hawaii Corporation and Subsidiaries

Consolidated Statements of Shareholders’ Equity (Unaudited)																			Table 5
								Accum.
								Other
								Compre-									Compre-
				Common		Capital		hensive			Retained			Treasury			hensive
(dollars in thousands)	Total			Stock		Surplus		Loss			Earnings			Stock			Income
Balance as of December 31, 2007	$	750,255		$	567	$	484,790	$	(5,091	)	$	688,638		$	(418,649	)
Cumulative-Effect Adjustment of a Change in Accounting Principle, Net of Tax:
SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities, including an amendment of FASB Statement No. 115”	(2,736		)	-		-		-			(2,736		)	-
Comprehensive Income:
Net Income	105,497			-		-		-			105,497			-			$	105,497
Other Comprehensive Income, Net of Tax:
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	(10,820		)	-		-		(10,820		)	-			-			(10,820			)
Amortization of Net Loss for Pension Plans and Postretirement Benefit Plan	98			-		-		98			-			-			98
Total Comprehensive Income																	$	94,775
Share-Based Compensation	3,072			-		3,072		-			-			-
Net Tax Benefits related to Share-Based Compensation	1,304			-		1,304		-			-			-
Common Stock Issued under Purchase and Equity Compensation Plans (276,946 shares)	8,478			1		169		-			(3,812		)	12,120
Common Stock Repurchased (923,330 shares)	(45,247		)	-		-		-			-			(45,247		)
Cash Dividends Paid	(42,343		)	-		-		-			(42,343		)	-
Balance as of June 30, 2008	$	767,558		$	568	$	489,335	$	(15,813	)	$	745,244		$	(451,776	)
Balance as of December 31, 2006	$	719,420		$	566	$	475,178	$	(39,084	)	$	630,660		$	(347,900	)
Cumulative-Effect Adjustment of a Change in Accounting Principle, Net of Tax:
SFAS No. 156, “Accounting for Servicing of Financial Assets, an amendment of FASB Statement No. 140”	5,126			-		-		5,279			(153		)	-
FSP No. 13-2, “Accounting for a Change or Projected Change in the Timing of Cash Flows Relating to Income Taxes Generated by a Leveraged Lease Transaction”	(27,106		)	-		-		-			(27,106		)	-
FIN 48, “Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109”	(7,247		)	-		-		-			(7,247		)	-
Comprehensive Income:
Net Income	95,064			-		-		-			95,064			-			$	95,064
Other Comprehensive Income, Net of Tax:
Change in Unrealized Gains and Losses on Investment Securities Available-for-Sale	(12,316		)	-		-		(12,316		)	-			-			(12,316			)
Amortization of Net Loss for Pension Plans and Postretirement Benefit Plan	416			-		-		416			-			-			416
Total Comprehensive Income																	$	83,164
Share-Based Compensation	2,748			-		2,748		-			-			-
Net Tax Benefits related to Share-Based Compensation	2,208			-		2,208		-			-			-
Common Stock Issued under Purchase and Equity Compensation Plans (444,008 shares)	12,407			-		255		-			(5,312		)	17,464
Common Stock Repurchased (779,689 shares)	(41,157		)	-		-		-			-			(41,157		)
Cash Dividends Paid	(40,757		)	-		-		-			(40,757		)	-
Balance as of June 30, 2007	$	708,806		$	566	$	480,389	$	(45,705	)	$	645,149		$	(371,593	)

Bank of Hawaii Corporation and Subsidiaries

Average Balances and Interest Rates - Taxable Equivalent Basis (Unaudited)															Table 6a
	Three Months Ended					Three Months Ended					Three Months Ended
	June 30, 2008					March 31, 2008					June 30, 2007 1
	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	$	33.0	$	0.2	2.45%	$	27.5	$	0.2	2.82%	$	8.0	$	0.1	4.83%
Funds Sold	81.9		0.4		2.03	138.2		1.0		2.84	40.6		0.5		5.19
Investment Securities
Trading	97.6		1.2		4.96	95.7		1.2		4.85	137.1		1.4		3.96
Available-for-Sale	2,649.9		35.6		5.37	2,631.6		34.5		5.24	2,486.9		31.8		5.11
Held-to-Maturity	269.6		3.1		4.50	285.6		3.2		4.54	339.3		3.8		4.51
Loans Held for Sale	9.3		0.1		5.78	10.5		0.1		5.43	13.6		0.2		6.34
Loans and Leases 2
Commercial and Industrial	1,060.7		14.3		5.42	1,065.1		16.6		6.26	1,053.3		19.5		7.43
Commercial Mortgage	663.0		10.1		6.15	649.1		10.4		6.45	620.0		10.6		6.85
Construction	177.3		2.5		5.76	199.5		3.3		6.73	253.8		5.0		7.93
Commercial Lease Financing	470.6		4.1		3.50	477.9		4.0		3.35	461.3		4.4		3.77
Residential Mortgage	2,509.1		38.2		6.09	2,519.3		38.6		6.13	2,499.5		38.3		6.12
Home Equity	968.7		14.1		5.86	970.8		16.0		6.61	941.4		17.9		7.62
Automobile	423.1		8.6		8.16	438.7		8.9		8.18	424.2		8.6		8.16
Other 3	259.1		5.9		9.11	267.4		6.5		9.73	279.2		7.5		10.83
Total Loans and Leases	6,531.6		97.8		6.01	6,587.8		104.3		6.35	6,532.7		111.8		6.86
Other	79.6		0.5		2.46	79.5		0.4		2.15	79.4		0.4		1.83
Total Earning Assets 4	9,752.5		138.9		5.71	9,856.4		144.9		5.89	9,637.6		150.0		6.23
Cash and Noninterest-Bearing Deposits	272.9					294.1					275.3
Other Assets	479.0					493.4					470.1
Total Assets	$	10,504.4				$	10,643.9				$	10,383.0
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	1,617.0	1.2		0.29	$	1,614.3	2.3		0.57	$	1,581.0	4.1		1.03
Savings	2,805.5		6.5		0.94	2,691.8		9.2		1.38	2,627.8		12.6		1.93
Time	1,646.5		12.5		3.07	1,747.2		16.0		3.67	1,707.9		17.0		3.99
Total Interest-Bearing Deposits	6,069.0		20.2		1.34	6,053.3		27.5		1.82	5,916.7		33.7		2.28
Short-Term Borrowings	61.2		0.3		1.82	79.7		0.7		3.31	116.9		1.5		5.23
Securities Sold Under Agreements to Repurchase	1,060.2		7.5		2.81	1,164.2		10.6		3.63	1,040.6		11.7		4.46
Long-Term Debt	224.3		3.5		6.18	239.8		3.7		6.26	260.3		4.0		6.12
Total Interest-Bearing Liabilities	7,414.7		31.5		1.70	7,537.0		42.5		2.26	7,334.5		50.9		2.78
Net Interest Income			$	107.4				$	102.4				$	99.1
Interest Rate Spread					4.01%					3.63%					3.45%
Net Interest Margin					4.41%					4.17%					4.12%
Noninterest-Bearing Demand Deposits	1,889.2					1,899.2					1,893.4
Other Liabilities	418.1					437.5					427.2
Shareholders’ Equity	782.4					770.2					727.9
Total Liabilities and Shareholders’ Equity	$	10,504.4				$	10,643.9				$	10,383.0

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

2  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.

3  Comprised of other consumer revolving credit, installment, and consumer lease financing.

4  Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $239,000 $238,000, and $236,000 for the three months ended June 30, 2008.

March 31, 2008, and June 30, 2007, respectively.

Bank of Hawaii Corporation and Subsidiaries

Average Balances and Interest Rates - Taxable Equivalent Basis (Unaudited)										Table 6b
	Six Months Ended					Six Months Ended
	June 30, 2008					June 30, 2007 1
	Average		Income/		Yield/	Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate	Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits	$	30.2	$	0.4	2.62%	$	6.3	$	0.2	4.89%
Funds Sold	110.1		1.4		2.54	60.8		1.6		5.20
Investment Securities
Trading	96.7		2.4		4.90	149.5		3.0		3.98
Available-for-Sale	2,640.8		70.0		5.31	2,470.1		62.9		5.10
Held-to-Maturity	277.5		6.3		4.52	350.1		7.9		4.50
Loans Held for Sale	9.9		0.3		5.59	10.5		0.3		6.27
Loans and Leases 2
Commercial and Industrial	1,062.9		30.9		5.84	1,064.6		39.3		7.44
Commercial Mortgage	656.0		20.5		6.30	618.3		20.9		6.82
Construction	188.5		5.9		6.27	249.7		9.8		7.95
Commercial Lease Financing	474.2		8.1		3.43	461.8		7.5		3.23
Residential Mortgage	2,514.2		76.8		6.11	2,497.9		76.5		6.12
Home Equity	969.8		30.1		6.24	941.8		35.6		7.62
Automobile	430.9		17.5		8.17	425.3		17.1		8.12
Other 3	263.3		12.3		9.43	287.8		15.3		10.75
Total Loans and Leases	6,559.8		202.1		6.18	6,547.2		222.0		6.82
Other	79.5		0.9		2.30	79.4		0.7		1.76
Total Earning Assets 4	9,804.5		283.8		5.80	9,673.9		298.6		6.20
Cash and Noninterest-Bearing Deposits	283.5					292.8
Other Assets	486.2					465.4
Total Assets	$	10,574.2				$	10,432.1
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	1,615.7	3.4		0.43	$	1,591.7	8.3		1.05
Savings	2,748.6		15.8		1.15	2,633.8		25.1		1.92
Time	1,696.9		28.5		3.38	1,719.9		33.7		3.94
Total Interest-Bearing Deposits	6,061.2		47.7		1.58	5,945.4		67.1		2.28
Short-Term Borrowings	70.4		1.0		2.67	98.4		2.6		5.17
Securities Sold Under Agreements to Repurchase	1,112.2		18.1		3.24	1,055.1		23.5		4.46
Long-Term Debt	232.0		7.2		6.22	260.3		7.9		6.12
Total Interest-Bearing Liabilities	7,475.8		74.0		1.98	7,359.2		101.1		2.76
Net Interest Income			$	209.8				$	197.5
Interest Rate Spread					3.82%					3.44%
Net Interest Margin					4.29%					4.09%
Noninterest-Bearing Demand Deposits	1,894.2					1,920.1
Other Liabilities	427.9					433.3
Shareholders’ Equity	776.3					719.5
Total Liabilities and Shareholders’ Equity	$	10,574.2				$	10,432.1

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

2  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.

3  Comprised of other consumer revolving credit, installment, and consumer lease financing.

4  Interest income includes taxable equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of $477,000 and $449,000 for the six months ended June 30, 2008 and 2007, respectively.

Bank of Hawaii Corporation and Subsidiaries

Analysis of Change in Net Interest Income - Taxable Equivalent Basis (Unaudited)							Table 7a
	Three Months Ended June 30, 2008
	Compared to March 31, 2008
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	(0.4	)	$	(0.2	)	$	(0.6	)
Investment Securities
Available-for-Sale	0.3			0.8			1.1
Held-to-Maturity	(0.1		)	-			(0.1		)
Loans and Leases
Commercial and Industrial	(0.1		)	(2.2		)	(2.3		)
Commercial Mortgage	0.2			(0.5		)	(0.3		)
Construction	(0.3		)	(0.5		)	(0.8		)
Commercial Lease Financing	(0.1		)	0.2			0.1
Residential Mortgage	(0.1		)	(0.3		)	(0.4		)
Home Equity	(0.1		)	(1.8		)	(1.9		)
Automobile	(0.3		)	-			(0.3		)
Other 2	(0.2		)	(0.4		)	(0.6		)
Total Loans and Leases	(1.0		)	(5.5		)	(6.5		)
Other	-			0.1			0.1
Total Change in Interest Income	(1.2		)	(4.8		)	(6.0		)
Change in Interest Expense:
Interest-Bearing Deposits
Demand	-			(1.1		)	(1.1		)
Savings	0.4			(3.1		)	(2.7		)
Time	(1.0		)	(2.5		)	(3.5		)
Total Interest-Bearing Deposits	(0.6		)	(6.7		)	(7.3		)
Short-Term Borrowings	(0.1		)	(0.3		)	(0.4		)
Securities Sold Under Agreements to Repurchase	(0.9		)	(2.2		)	(3.1		)
Long-Term Debt	(0.2		)	-			(0.2		)
Total Change in Interest Expense	(1.8		)	(9.2		)	(11.0		)
Change in Net Interest Income	$	0.6		$	4.4		$	5.0

1  The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume and rate for that category.

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 (Unaudited)							Table 7b
	Three Months Ended June 30, 2008
	Compared to June 30, 2007
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Interest-Bearing Deposits	$	0.2		$	(0.1	)	$	0.1
Funds Sold	0.3			(0.4		)	(0.1		)
Investment Securities
Trading	(0.5		)	0.3			(0.2		)
Available-for-Sale	2.2			1.6			3.8
Held-to-Maturity	(0.7		)	-			(0.7		)
Loans Held for Sale	(0.1		)	-			(0.1		)
Loans and Leases
Commercial and Industrial	0.1			(5.3		)	(5.2		)
Commercial Mortgage	0.7			(1.2		)	(0.5		)
Construction	(1.3		)	(1.2		)	(2.5		)
Commercial Lease Financing	-			(0.3		)	(0.3		)
Residential Mortgage	0.1			(0.2		)	(0.1		)
Home Equity	0.5			(4.3		)	(3.8		)
Other 2	(0.5		)	(1.1		)	(1.6		)
Total Loans and Leases	(0.4		)	(13.6		)	(14.0		)
Other	-			0.1			0.1
Total Change in Interest Income	1.0			(12.1		)	(11.1		)
Change in Interest Expense:
Interest-Bearing Deposits
Demand	0.1			(3.0		)	(2.9		)
Savings	0.8			(6.9		)	(6.1		)
Time	(0.6		)	(3.9		)	(4.5		)
Total Interest-Bearing Deposits	0.3			(13.8		)	(13.5		)
Short-Term Borrowings	(0.5		)	(0.7		)	(1.2		)
Securities Sold Under Agreements to Repurchase	0.2			(4.4		)	(4.2		)
Long-Term Debt	(0.6		)	0.1			(0.5		)
Total Change in Interest Expense	(0.6		)	(18.8		)	(19.4		)
Change in Net Interest Income	$	1.6		$	6.7		$	8.3

1  The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume and rate for that category.

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 (Unaudited)									Table  7c
	Six Months Ended June 30, 2008
	Compared to June 30, 2007
(dollars in millions)	Volume 1			Rate 1			Time 1		Total
Change in Interest Income:
Interest-Bearing Deposits	$	0.3		$	(0.1	)	$	-	$	0.2
Funds Sold	0.9			(1.1		)	-		(0.2		)
Investment Securities
Trading	(1.2		)	0.6			-		(0.6		)
Available-for-Sale	4.4			2.7			-		7.1
Held-to-Maturity	(1.6		)	-			-		(1.6		)
Loans and Leases
Commercial and Industrial	(0.1		)	(8.5		)	0.2		(8.4		)
Commercial Mortgage	1.2			(1.7		)	0.1		(0.4		)
Construction	(2.1		)	(1.9		)	0.1		(3.9		)
Commercial Lease Financing	0.2			0.4			-		0.6
Residential Mortgage	0.5			(0.2		)	-		0.3
Home Equity	1.0			(6.7		)	0.2		(5.5		)
Automobile	0.2			0.1			0.1		0.4
Other 2	(1.3		)	(1.8		)	0.1		(3.0		)
Total Loans and Leases	(0.4		)	(20.3		)	0.8		(19.9		)
Other	-			0.2			-		0.2
Total Change in Interest Income	2.4			(18.0		)	0.8		(14.8		)
Change in Interest Expense:
Interest-Bearing Deposits
Demand	0.1			(5.1		)	0.1		(4.9		)
Savings	1.1			(10.5		)	0.1		(9.3		)
Time	(0.4		)	(5.0		)	0.2		(5.2		)
Total Interest-Bearing Deposits	0.8			(20.6		)	0.4		(19.4		)
Short-Term Borrowings	(0.6		)	(1.0		)	-		(1.6		)
Securities Sold Under Agreements to Repurchase	1.2			(6.7		)	0.1		(5.4		)
Long-Term Debt	(0.9		)	0.2			-		(0.7		)
Total Change in Interest Expense	0.5			(28.1		)	0.5		(27.1		)
Change in Net Interest Income	$	1.9		$	10.1		$	0.3	$	12.3

1 The changes for each category of interest income and expense are allocated between the portion of changes attributable to the variance in volume, rate, and time for that category.

2  Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawaii Corporation and Subsidiaries

Salaries and Benefits (Unaudited)									Table 8
	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,
(dollars in thousands)	2008		2008		2007		2008		2007
Salaries	$	30,019	$	28,903	$	29,220	$	58,922	$	57,344
Incentive Compensation	4,122		6,267		3,794		10,389		7,413
Cash for Stock Grants	-		4,640		-		4,640		-
Share-Based Compensation	1,124		1,648		1,333		2,772		2,560
Commission Expense	1,992		1,873		2,161		3,865		4,154
Retirement and Other Benefits	3,499		5,226		3,365		8,725		7,134
Payroll Taxes	2,491		3,414		2,247		5,905		5,769
Medical, Dental, and Life Insurance	2,470		2,499		2,263		4,969		4,501
Separation Expense	267		1,003		204		1,270		1,118
Total Salaries and Benefits	$	45,984	$	55,473	$	44,587	$	101,457	$	89,993

Bank of Hawaii Corporation and Subsidiaries

Loan and Lease Portfolio Balances (Unaudited)									Table 9
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)	2008		2008		2007 1		2007 1		2007 1
Commercial
Commercial and Industrial	$	1,052,319	$	1,079,772	$	1,054,355	$	1,065,258	$	1,065,155
Commercial Mortgage	680,784		650,638		634,483		627,329		619,668
Construction	168,678		190,521		208,670		254,062		261,478
Lease Financing	471,443		465,945		481,882		478,988		480,358
Total Commercial	2,373,224		2,386,876		2,379,390		2,425,637		2,426,659
Consumer
Residential Mortgage	2,509,133		2,530,207		2,508,261		2,510,313		2,505,073
Home Equity	966,108		967,146		972,995		953,713		938,261
Automobile	413,338		430,920		443,011		440,525		425,672
Other 2	256,325		264,188		277,204		269,727		270,461
Total Consumer	4,144,904		4,192,461		4,201,471		4,174,278		4,139,467
Total Loans and Leases	$	6,518,128	$	6,579,337	$	6,580,861	$	6,599,915	$	6,566,126

Air Transportation Credit Exposure 3 (Unaudited)
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)	2008		2008		2007		2007		2007
Passenger Carriers Based In the United States	$	60,603	$	61,190	$	64,947	$	64,867	$	65,607
Passenger Carriers Based Outside the United States	7,161		7,258		19,078		19,162		19,246
Cargo Carriers	13,568		13,472		13,390		13,326		13,279
Total Air Transportation Credit Exposure	$	81,332	$	81,920	$	97,415	$	97,355	$	98,132

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

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

3  Exposure includes loans, leveraged leases and operating leases.

Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More (Unaudited)															Table 10
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)	2008			2008			2007 1			2007 1			2007 1
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial	$	1,119		$	794		$	598		$	359		$	265
Commercial Mortgage	-			-			112			123			130
Lease Financing	329			504			297			-			914
Total Commercial	1,448			1,298			1,007			482			1,309
Consumer
Residential Mortgage	3,784			3,235			2,681			3,237			3,844
Home Equity	1,189			1,187			1,414			436			899
Other 2	30			31			-			-			214
Total Consumer	5,003			4,453			4,095			3,673			4,957
Total Non-Accrual Loans and Leases	6,451			5,751			5,102			4,155			6,266
Foreclosed Real Estate	229			294			184			105			48
Total Non-Performing Assets	$	6,680		$	6,045		$	5,286		$	4,260		$	6,314
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial	$	-		$	24		$	-		$	-		$	-
Consumer
Residential Mortgage	2,601			3,892			4,884			639			188
Home Equity	201			328			413			115			60
Automobile	625			865			1,174			734			397
Other 2	756			725			1,112			944			761
Total Consumer	4,183			5,810			7,583			2,432			1,406
Total Accruing Loans and Leases Past Due 90 Days or More	$	4,183		$	5,834		$	7,583		$	2,432		$	1,406
Total Loans and Leases	$	6,518,128		$	6,579,337		$	6,580,861		$	6,599,915		$	6,566,126
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases	0.10%			0.09%			0.08%			0.06%			0.10%
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate	0.10%			0.09%			0.08%			0.06%			0.10%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases	0.06%			0.05%			0.04%			0.02%			0.05%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Foreclosed Real Estate	0.13%			0.11%			0.10%			0.09%			0.12%
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases	0.17%			0.18%			0.20%			0.10%			0.12%
Quarter to Quarter Changes in Non-Performing Assets Balance at Beginning of Quarter	$	6,045		$	5,286		$	4,260		$	6,314		$	5,836
Additions	2,900			2,614			1,866			662			2,279
Reductions
Payments	(630		)	(386		)	(256		)	(1,741		)	(804			)
Return to Accrual Status	(943		)	(944		)	(214		)	(787		)	(473			)
Sales of Foreclosed Real Estate	-			-			(161		)	(48		)	(326			)
Charge-offs / Write-downs	(692		)	(525		)	(209		)	(140		)	(198			)
Total Reductions	(2,265		)	(1,855		)	(840		)	(2,716		)	(1,801			)
Balance at End of Quarter	$	6,680		$	6,045		$	5,286		$	4,260		$	6,314

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

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

Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses (Unaudited)										Table 11
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands)	2008			2008			2007 1			2008			2007 1
Balance at Beginning of Period	$	105,167		$	96,167		$	96,167		$	96,167		$	96,167
Loans and Leases Charged-Off
Commercial
Commercial and Industrial	(1,396		)	(1,389		)	(738		)	(2,785		)	(1,543		)
Lease Financing	(142		)	(134		)	-			(276		)	(22		)
Consumer
Residential Mortgage	(133		)	-			(47		)	(133		)	(47		)
Home Equity	(473		)	(806		)	(240		)	(1,279		)	(342		)
Automobile	(2,187		)	(2,915		)	(2,346		)	(5,102		)	(5,428		)
Other 2	(1,954		)	(2,803		)	(1,849		)	(4,757		)	(4,481		)
Total Loans and Leases Charged-Off	(6,285		)	(8,047		)	(5,220		)	(14,332		)	(11,863		)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial	201			986			315			1,187			592
Commercial Mortgage	-			-			36			-			121
Lease Financing	2			3			6			5			2,087
Consumer
Residential Mortgage	17			78			54			95			189
Home Equity	26			21			55			47			120
Automobile	700			796			713			1,496			1,384
Other 2	667			736			678			1,403			1,376
Total Recoveries on Loans and Leases Previously Charged-Off	1,613			2,620			1,857			4,233			5,869
Net Loans and Leases Charged-Off	(4,672		)	(5,427		)	(3,363		)	(10,099		)	(5,994		)
Provision for Credit Losses	7,172			14,427			3,363			21,599			5,994
Balance at End of Period 3	$	107,667		$	105,167		$	96,167		$	107,667		$	96,167
Components
Allowance for Loan and Lease Losses	$	102,498		$	99,998		$	90,998		$	102,498		$	90,998
Reserve for Unfunded Commitments	5,169			5,169			5,169			5,169			5,169
Total Reserve for Credit Losses	$	107,667		$	105,167		$	96,167		$	107,667		$	96,167
Average Loans and Leases Outstanding	$	6,531,587		$	6,587,918		$	6,532,736		$	6,559,753		$	6,547,212
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized)	0.29%			0.33%			0.21%			0.31%			0.18%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding	1.57%			1.52%			1.39%			1.57%			1.39%

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

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

3  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 (Unaudited).

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information (Unaudited)																Table 12a
	Retail			Commercial			Investment									Consolidated
(dollars in thousands)	Banking			Banking			Services			Total			Treasury			Total
Three Months Ended June 30, 2008
Net Interest Income	$	59,555		$	43,264		$	3,938		$	106,757		$	411		$	107,168
Provision for Credit Losses	2,571			4,652			(1		)	7,222			(50		)	7,172
Net Interest Income After Provision for Credit Losses	56,984			38,612			3,939			99,535			461			99,996
Noninterest Income	27,270			9,997			19,019			56,286			4,253			60,539
Noninterest Expense	(43,335		)	(23,544		)	(16,363		)	(83,242		)	(620		)	(83,862		)
Income Before Provision for Income Taxes	40,919			25,065			6,595			72,579			4,094			76,673
Provision for Income Taxes	(15,140		)	(9,286		)	(2,440		)	(26,866		)	(1,525		)	(28,391		)
Allocated Net Income	25,779			15,779			4,155			45,713			2,569			48,282
Allowance Funding Value	(221		)	(865		)	(14		)	(1,100		)	1,100			-
Provision for Credit Losses	2,571			4,652			(1		)	7,222			(50		)	7,172
Economic Provision	(1,945		)	(3,257		)	(82		)	(5,284		)	(1		)	(5,285		)
Tax Effect of Adjustments	(150		)	(196		)	36			(310		)	(387		)	(697		)
Income Before Capital Charge	26,034			16,113			4,094			46,241			3,231			49,472
Capital Charge	(4,749		)	(4,036		)	(1,444		)	(10,229		)	(9,328		)	(19,557		)
Net Income (Loss) After Capital Charge (NIACC)	$	21,285		$	12,077		$	2,650		$	36,012		$	(6,097	)	$	29,915
RAROC (ROE for the Company)	55%			40%			28%			45%			19%			25%
Total Assets as of June 30, 2008	$	3,649,376		$	2,998,013		$	242,443		$	6,889,832		$	3,481,317		$	10,371,149
Three Months Ended June 30, 2007 1
Net Interest Income (Loss)	$	55,606		$	40,668		$	3,466		$	99,740		$	(862	)	$	98,878
Provision for Credit Losses	1,258			2,115			-			3,373			(10		)	3,363
Net Interest Income (Loss) After Provision for Credit Losses	54,348			38,553			3,466			96,367			(852		)	95,515
Noninterest Income	26,790			8,033			19,454			54,277			3,751			58,028
Noninterest Expense	(41,109		)	(22,318		)	(15,519		)	(78,946		)	(886		)	(79,832		)
Income Before Provision for Income Taxes	40,029			24,268			7,401			71,698			2,013			73,711
Provision for Income Taxes	(14,812		)	(9,061		)	(2,738		)	(26,611		)	629			(25,982		)
Allocated Net Income	25,217			15,207			4,663			45,087			2,642			47,729
Allowance Funding Value	(155		)	(824		)	(10		)	(989		)	989			-
Provision for Credit Losses	1,258			2,115			-			3,373			(10		)	3,363
Economic Provision	(1,823		)	(3,167		)	(83		)	(5,073		)	-			(5,073		)
Tax Effect of Adjustments	266			694			34			994			(361		)	633
Income Before Capital Charge	24,763			14,025			4,604			43,392			3,260			46,652
Capital Charge	(5,083		)	(4,356		)	(1,529		)	(10,968		)	(9,047		)	(20,015		)
Net Income (Loss) After Capital Charge (NIACC)	$	19,680		$	9,669		$	3,075		$	32,424		$	(5,787	)	$	26,637
RAROC (ROE for the Company)	54%			36%			33%			44%			11%			26%
Total Assets as of June 30, 2007 1	$	3,638,207		$	3,108,240		$	230,134		$	6,976,581		$	3,745,987		$	10,722,568

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

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information (Unaudited)																Table 12b
	Retail			Commercial			Investment									Consolidated
(dollars in thousands)	Banking			Banking			Services			Total			Treasury			Total
Six Months Ended June 30, 2008
Net Interest Income (Loss)	$	117,979		$	86,099		$	7,808		$	211,886		$	(2,538	)	$	209,348
Provision for Credit Losses	10,523			11,878			(1		)	22,400			(801		)	21,599
Net Interest Income (Loss) After Provision for Credit Losses	107,456			74,221			7,809			189,486			(1,737		)	187,749
Noninterest Income	55,817			32,246			37,280			125,343			21,321			146,664
Noninterest Expense	(87,104		)	(48,265		)	(33,226		)	(168,595		)	(8,699		)	(177,294		)
Income Before Provision for Income Taxes	76,169			58,202			11,863			146,234			10,885			157,119
Provision for Income Taxes	(28,182		)	(21,587		)	(4,389		)	(54,158		)	2,536			(51,622		)
Allocated Net Income	47,987			36,615			7,474			92,076			13,421			105,497
Allowance Funding Value	(397		)	(1,710		)	(27		)	(2,134		)	2,134			-
Provision for Credit Losses	10,523			11,878			(1		)	22,400			(801		)	21,599
Economic Provision	(4,088		)	(6,492		)	(165		)	(10,745		)	(1		)	(10,746		)
Tax Effect of Adjustments	(2,234		)	(1,360		)	71			(3,523		)	(492		)	(4,015		)
Income Before Capital Charge	51,791			38,931			7,352			98,074			14,261			112,335
Capital Charge	(9,528		)	(8,133		)	(2,919		)	(20,580		)	(18,285		)	(38,865		)
Net Income (Loss) After Capital Charge (NIACC)	$	42,263		$	30,798		$	4,433		$	77,494		$	(4,024	)	$	73,470
RAROC (ROE for the Company)	55%			48%			25%			48%			38%			27%
Total Assets as of June 30, 2008	$	3,649,376		$	2,998,013		$	242,443		$	6,889,832		$	3,481,317		$	10,371,149
Six Months Ended June 30, 2007 1
Net Interest Income	$	110,025		$	79,698		$	6,991		$	196,714		$	301		$	197,015
Provision for Credit Losses	2,803			3,213			-			6,016			(22		)	5,994
Net Interest Income After Provision for Credit Losses	107,222			76,485			6,991			190,698			323			191,021
Noninterest Income	52,370			20,246			38,601			111,217			7,771			118,988
Noninterest Expense	(82,443		)	(45,238		)	(31,202		)	(158,883		)	(3,072		)	(161,955		)
Income Before Provision for Income Taxes	77,149			51,493			14,390			143,032			5,022			148,054
Provision for Income Taxes	(28,539		)	(18,935		)	(5,324		)	(52,798		)	(192		)	(52,990		)
Allocated Net Income	48,610			32,558			9,066			90,234			4,830			95,064
Allowance Funding Value	(300		)	(1,582		)	(20		)	(1,902		)	1,902			-
Provision for Credit Losses	2,803			3,213			-			6,016			(22		)	5,994
Economic Provision	(3,692		)	(6,441		)	(164		)	(10,297		)	(1		)	(10,298		)
Tax Effect of Adjustments	440			1,780			68			2,288			(697		)	1,591
Income Before Capital Charge	47,861			29,528			8,950			86,339			6,012			92,351
Capital Charge	(10,167		)	(8,835		)	(3,062		)	(22,064		)	(17,506		)	(39,570		)
Net Income (Loss) After Capital Charge (NIACC)	$	37,694		$	20,693		$	5,888		$	64,275		$	(11,494	)	$	52,781
RAROC (ROE for the Company)	52%			37%			32%			43%			9%			27%
Total Assets as of June 30, 2007 1	$	3,638,207		$	3,108,240		$	230,134		$	6,976,581		$	3,745,987		$	10,722,568

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

Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data (Unaudited)									Table 13
	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands, except per share amounts)	2008		2008		2007		2007		2007
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	97,959	$	104,413	$	111,270	$	112,787	$	112,026
Income on Investment Securities
Trading	1,209		1,160		814		1,114		1,357
Available-for-Sale	35,321		34,251		33,591		33,486		31,563
Held-to-Maturity	3,033		3,239		3,440		3,616		3,827
Deposits	204		195		309		1,086		96
Funds Sold	420		992		356		1,103		533
Other	489		426		395		364		364
Total Interest Income	138,635		144,676		150,175		153,556		149,766
Interest Expense
Deposits	20,238		27,465		33,158		37,613		33,701
Securities Sold Under Agreements to Repurchase	7,488		10,617		11,754		11,726		11,665
Funds Purchased	270		633		1,936		1,654		1,452
Short-Term Borrowings	12		34		91		87		91
Long-Term Debt	3,459		3,747		3,789		3,920		3,979
Total Interest Expense	31,467		42,496		50,728		55,000		50,888
Net Interest Income	107,168		102,180		99,447		98,556		98,878
Provision for Credit Losses	7,172		14,427		5,443		4,070		3,363
Net Interest Income After Provision for Credit Losses	99,996		87,753		94,004		94,486		95,515
Noninterest Income
Trust and Asset Management	15,460		15,086		15,812		15,146		16,135
Mortgage Banking	2,738		4,297		2,027		3,848		2,479
Service Charges on Deposit Accounts	12,411		12,083		12,302		11,919		11,072
Fees, Exchange, and Other Service Charges	17,176		16,101		16,743		16,465		16,556
Investment Securities Gains, Net	157		130		105		789		575
Insurance	5,590		7,130		4,629		7,446		4,887
Other	7,007		31,298		8,639		5,629		6,324
Total Noninterest Income	60,539		86,125		60,257		61,242		58,028
Noninterest Expense
Salaries and Benefits	45,984		55,473		45,928		44,944		44,587
Net Occupancy	11,343		10,443		10,300		10,267		9,695
Net Equipment	4,474		4,321		4,745		4,871		4,871
Professional Fees	2,588		2,613		3,695		2,369		2,599
Other	19,473		20,582		27,334		18,999		18,080
Total Noninterest Expense	83,862		93,432		92,002		81,450		79,832
Income Before Provision for Income Taxes	76,673		80,446		62,259		74,278		73,711
Provision for Income Taxes	28,391		23,231		21,399		26,499		25,982
Net Income	$	48,282	$	57,215	$	40,860	$	47,779	$	47,729
Basic Earnings Per Share	$1.01		$1.19		$0.84		$0.98		$0.97
Diluted Earnings Per Share	$1.00		$1.18		$0.83		$0.96		$0.95
Balance Sheet Totals
Total Assets	$	10,371,149	$	10,822,801	$	10,472,942	$	10,549,595	$	10,722,568
Loans and Leases	6,518,128		6,579,337		6,580,861		6,599,915		6,566,126
Total Deposits	7,903,990		8,102,855		7,942,372		7,875,166		8,314,404
Total Shareholders’ Equity	767,558		766,747		750,255		731,697		708,806
Performance Ratios
Net Income to Average Total Assets	1.85%		2.16%		1.55%		1.79%		1.84%
Net Income to Average Shareholders’ Equity	24.82		29.88		21.51		26.02		26.30
Efficiency Ratio 1	50.01		49.62		57.61		50.97		50.88
Net Interest Margin 2	4.41		4.17		4.12		4.03		4.12

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 fully-taxable equivalent basis, as a percentage of average earning assets.