B A N K O F H A W A I I 2 0 1 2 A N N U A L R E P O R T
C O M M I T M E N T
C O N T E N T S
1 Chairman’s Message
3 2 01 2 Financial Summary
4 Year in Review
8 Client Profiles
16 Committed to Our Employees
18 Committed to Our Island Communities
20 2012 Financial Tables
24 Managing Committee and Board of Directors
27 Bank of Hawaii Locations
28 Shareholder Information
O N T H E C O V E R
Haleakalā Silversword
Famous for its beautiful silver color, the Haleakalā
‘ahinahina, or silversword, is an endangered species
unique to Hawaii. Symbolic of the Hawaiian proverb,
kulia i ka nu‘u or “strive for the summit,” silverswords
grow only at high altitudes where they have adapted
to the harsh environments of the volcanic slopes of
Haleakalā, Mauna Kea and Mauna Loa.
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C H A I R M A N ’ S M E S S A G E
DE A R F ELLOW SH A R EHOLDER S ,
We are pleased to report
that Bank of Hawaii had
another solid year in 2012.
Perhaps more importantly,
in 2012 we furthered our
quest to enhance the
value of our franchise
for the long term through
thoughtful investment in
our people, our customers
and our community.
islands and spending $14.3 billion. Of note,
international visitors accounted for 45% of overall
visitor spending in 2012. Unemployment improved
to 5.2% at year end compared to 7.8% nationally.
Single-family home prices on Oahu rose 7.8%
in 2012 while sales volume rose 6.5%. Both
single-family and condominium median prices
are close to pre-recession levels. Single-family
home and condominium inventories are now at
historically low levels.
Fully diluted earnings per share were $3.67,
an 8.3% increase over 2011. Loans and deposits
grew during the year. Credit quality improved.
Capital and reserves remained at healthy and
prudential levels.
The Guam economy experienced a strong year in
2012. Visitor arrivals were up 12.8% over the prior
year and revenue per available room was up 26%.
Unemployment improved to 10.9%, down from a
peak of 14% in 2011.
The national economy continued its trajectory
of recovery marked by slow growth, improving
but high unemployment, stabilizing housing
markets and tepid but improving consumer
demand and business investment. The Hawaii
and Guam markets performed better and I’ll touch
on that further in a bit.
The community banking industry, while improved
in 2012, is certainly not without its challenges.
While the improved economy has allowed for loan
and deposit growth, our net interest margin has
been hampered by a historically low interest rate
environment. Enhanced regulatory requirements
resulting from the financial crisis have added
complexity and costs to our operations.
As you might guess, our approach to these
challenges has been to take a balanced approach
and to double down our efforts on making our
operation even more effective, efficient and
relevant to our customers.
The Hawaiian Economy
As we mentioned earlier, the Hawaiian economy
performed relatively better than the broader
national economy in 2012. Our visitor industry had
a record year in both arrivals and visitor spending
with nearly eight million visitors enjoying our
American Samoa
In November of last year, we announced we will
be closing our two branches in American Samoa.
This was a decision not made lightly, especially
following more than 40 years of operating in the
region. However, it is the only operation we now
have in the South Pacific and its geographic
isolation and other factors posed operational
challenges. We worked closely with the other
financial institution on the island to transition
our accounts and accommodate customers.
Shareholder Value
Despite the challenging margin environment,
we increased fully diluted earnings per share
to $3.67 in 2012. We achieved this growth in
part through improved credit quality, through
controlled expenses and through exceptional
results in our mortgage banking operation. For
the year, we originated almost $1.5 billion in
residential mortgages. More than any other
local lender in the Hawaii market.
We paid a dividend of $1.80 per share in 2012,
extending our record practice of more than
70 consecutive years of delivering consistent
cash dividends. Stock repurchases for the year
totaled $79.5 million.
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As at year end, our price-to-book ratio was 1.92,
giving us an enviable valuation and a testament
to the perceived long-term value of our franchise
in the eyes of our investors.
Late in the year, Forbes Magazine rated our bank
the second best performing bank in the country
in its annual ranking. In the four years that Forbes
has been conducting the rankings, Bank of Hawaii
has finished either first or second in each of the
years measured.
Our Employees
It is our employees who differentiate the Bank
of Hawaii brand from others. They develop and
nurture the relationships and build the trust that
has earned Bank of Hawaii its premier reputation
within the community for exceptional service as
a financial services provider. We must ensure our
ability to hire, retain and develop our professional
talent to keep us a leader in the marketplace.
Over the past couple of years we have
accelerated and enhanced our employee training
and development programs. This renewed focus
on building employee engagement throughout
the company is grounded in an exciting program
we term “Grow Connect Thrive.” Aimed at
positively increasing employees’ experiences
in the workplace, the program combines elements
of professional and personal development. In 2012,
we continued to build on this culture of learning
with the addition of series on leadership training
and skills building as well as exercise, fitness
and health.
Our Customers
The test of our merit comes in our ability to offer
sound banking products and services that meet
the financial services demands of our customers
in a convenient and effective way. Since 2001 we
have conducted quarterly quantitative market
research to measure customer satisfaction levels
and are gratified that customers rate Bank of
Hawaii at the highest levels for both customer
service and overall satisfaction since we initiated
the surveys.
In the third quarter of 2012 we introduced a new
credit card product called MyBankoh Rewards
designed to complement our existing Hawaiian
Airlines Visa card. The new card provides
customers with an extensive rewards program
that allows a high degree of flexibility when
redeeming rewards points for any purchase over
$25. It also features year-end bonus rewards based
on amount spent during the year. Plus, there are no
caps or expiration on points. Initial response rates
following the third quarter “soft” launch exceeded
goals. We moved to a more aggressive marketing
campaign in January 2013.
While traditional branches remain an important
part of our network, experience tells us more and
more people prefer the convenience of combining
their banking with other errands such as grocery
shopping or simply relying on electronic channels
such as the internet and mobile banking. As a
result, we invest in technology and continue
our branch optimization strategy, which is an
efficiency and customer-driven approach to ensure
our branches are in the most convenient locations
and appropriately sized to leverage opportunities
in those communities.
Our Community
Taking care of the community is a core value at
Bank of Hawaii. In 2012 nearly 1,800 volunteers
participated in one or more of our 78 community
events. In addition we held 125 Bank of Hawaii
Smart Money Seminars that included a wide
range of topics from budgeting and planning for
retirement to helping senior citizens guard against
fraud. These seminars, which are facilitated by a
pool of 166 specially trained employees, are held
as a public service and are free to the public.
Also in 2012 we were named SBA Lender of the
Year. This is the eighth year Bank of Hawaii has
earned this recognition.
Bank of Hawaii became the first financial
institution to introduce the Hawaiian language
onto its ATM network. We worked in cooperation
with the Hawaii Tourism Authority and the Office
of Hawaiian Affairs to ensure the integrity of all
translations. We believe that by incorporating
this into common everyday usage, it will help
perpetuate and preserve the importance of our
native Hawaiian language.
In Closing
In closing, we want to thank you for your
continued interest and support of Bank of Hawaii.
2012 marked our 115th year as a bank serving
the Hawaii market. Asia and the Pacific continue
to play a more and more vital role in the global
economy and in geopolitical affairs. Hawaii
remains geographically in the center of this trend
and, we believe, is poised to benefit long term
from it.
As we look forward, I have great confidence that
we can build even further on our accomplishments
and achieve even more for our shareholders, our
customers, our community and our employees.
P E T ER S . H O
Chairman, President, and Chief Executive Officer
Bank of Hawaii Corporation and Bank of Hawaii
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2 0 1 2 F I N A N C I A L S U M M A RY
Bank of Hawaii Corporation and Subsidiaries (dollars in thousands, except per-share amounts)
F O R T H E Y E A R E N D E D D E C E M B E R 3 1
2012
2011
Earnings Highlights and Performance Ratios
Net Income
Basic Earnings Per Share
Diluted Earnings Per Share
Dividends Declared Per Share
Net Income to Average Total Assets (ROA)
Net Income to Average Shareholders’ Equity (ROE)
Net Interest Margin1
Efficiency Ratio2
Market Price Per Share of Common Stock:
Closing
High
Low
A S O F D E C E M B E R 3 1
Statement of Condition Highlights and Performance Ratios
Loans and Leases
Total Assets
Total Deposits
Total Shareholders’ Equity
Book Value Per Common Share
Allowance to Loans and Leases Outstanding
Full-Time Equivalent Employees
Branches and Offices
F O R T H E Q U A R T E R E N D E D D E C E M B E R 3 1
Earnings Highlights and Performance Ratios
Net Income
Basic Earnings Per Share
Diluted Earnings Per Share
Net Income to Average Total Assets (ROA)
Net Income to Average Shareholders’ Equity (ROE)
Net Interest Margin1
Efficiency Ratio2
$
$
166,076
3.68
3.67
1.80
1.22 %
16.23 %
2.97 %
57.88 %
44.05
49.99
41.41
$
5,854,521
13,728,372
11,529,482
1,021,665
22.83
2.20 %
$
2,276
76
$
40,287
0.90
0.90
1.19 %
15.47 %
2.87 %
58.24 %
$
$
$
$
$
160,043
3.40
3.39
1.80
1.22 %
15.69 %
3.13 %
59.23 %
44.49
49.26
34.50
5,538,304
13,846,391
10,592,623
1,002,667
21.82
2.50 %
2,370
81
39,229
0.85
0.85
1.17 %
15.23 %
3.04 %
60.42 %
1 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
2 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).
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Y E A R I N R E V I E W
O U R E N D U R I N G C O M M I T M E N T
At Bank of Hawaii we are steadfast in our commitment to deliver the highest value, service
and benefit to our stakeholders: our shareholders, customers, employees, and community.
The way we do business is guided by our commitment to maximize shareholder value over
time, provide our customers the most convenient banking services for their lifetime financial
needs, give our employees every opportunity to connect, grow and thrive—both at work and
in the community, and serve the communities where we live and work.
We do this by adapting to an ever changing
banking environment and delivering the most
convenient service to the people we serve.
How well are we delivering on our commitment
to each of our stakeholders? One indicator is the
judgment of our peers. For the fourth straight year,
Forbes has named Bank of Hawaii one of the top
banks in the country. And for the second
consecutive year, the trade publication ABA
Banking Journal has named Bank of Hawaii the
nation’s top performing bank among the largest
public and private banks and thrifts.
CO M M I T M E N T TO A N E XC E P T I O N A L
C U S TO M E R E X P E R I E N C E
Convenience is key for the Bank of Hawaii
customer experience. In this age of Facebook
and Twitter and the ubiquitous smart phones, we
constantly look for ways to engage with customers
however they prefer and deliver services wherever
they are. For quick and convenient access,
customers can choose from our 24/7 call center,
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our extensive network of ATMs, or the enhanced
functionality of our online and mobile banking
services. For traditional banking, we offer
seven-day-a-week banking through our in-store
branches. For more complex and specialized
banking products and services, we added to our
network of strategically located banking centers.
Online and Mobile Banking
Industry-wide trends show steep increases in
online banking over the last 20 years, and a more
recent rise in mobile banking that is also projected
for rapid growth. Bank of Hawaii is right in line
with these trends. To stay abreast of this shift
in consumer preferences, we have expanded our
e-Bankoh online and mobile banking services.
Customers have become accustomed to the
ease and security of getting online statements,
transferring funds between accounts, reviewing
account transactions, opening new accounts,
and paying bills at www.boh.com. Using a Bankoh
app, customers with an iPhone or Android
smartphone are a part of the growing mobile
banking revolution. Customers can view their
accounts, pay bills, transfer funds, and even
find the nearest ATM or Bank of Hawaii branch.
In another expansion of mobile banking to the
popular tablet platform, we will be launching an
iPad app in 2013.
Social Media
With more than one billion people using Facebook,
and more than 550 million tweeting on Twitter,
these social media platforms have revolutionized
the way we interact with one another. Bank of
Hawaii launched on Twitter in December 2011, and
on Facebook in January 2012, giving us the largest
social media presence of any Hawaii bank, with
nearly 3,000 Twitter followers and more than
10,000 Facebook fans and growing. These platforms
allow us to listen to our followers in real time,
respond to their comments quickly, and promote
our products and services. It’s also a way to
highlight our community service activities and
even alert fans to job openings. Social media is
a valuable way to deepen relationships with
our customers.
ATMs—“Aloha mai”
With nearly 500 ATMs, Bank of Hawaii has the
largest statewide network of automated teller
machines, all with multi-language screens in
Japanese, Chinese and English. At the end of 2012
we introduced a unique new capability—the
Hawaiian language—which we will roll out to our
entire network in 2013. This special initiative
reflects our commitment to being the Bank of
Hawaii by helping to perpetuate the Hawaiian
language and our host culture. The Office of
Hawaiian Affairs and the Hawaii Tourism
Authority provided their expertise to ensure
the accuracy of translations.
Credit Cards
In 2012, we expanded our credit card offerings
by launching our own self-issued credit cards—
the Bank of Hawaii Visa Signature and American
Express MyBankoh Rewards Credit Cards, which
feature generous and flexible rewards programs.
These cards complement our very popular Bank of
Hawaii Hawaiian Airlines Visa Signature Credit
Cards, which we offer through our partnership
with Hawaiian Airlines.
Mortgage Lending
Once again, Bank of Hawaii was named the #1
residential lending market share leader for 2012
among local Hawaii banks, based on executing
the greatest number of loans and the highest
dollar amount—more than $1 billion. What this
means is that we helped thousands of families to
improve their lives by refinancing their loan or by
purchasing a new home. This kind of success relies
on teamwork, and to improve our overall efficiency
we moved our back office staff from Kapolei to the
same downtown Honolulu location as many of our
loan officers. The success of the entire team was
reflected in Bank of Hawaii being awarded the
Honolulu Star-Advertiser people’s choice award
for Best Mortgage Company of the year.
Our Consumer Lending Department also increased
its volume of home equity credit lines with the
introduction of the HELOC PV product, our
home equity credit line that makes it easy for
homeowners to purchase a photovoltaic system
and take advantage of attractive tax credits.
In-Store Branches
As online and mobile banking have become
increasingly popular, there has been a steady
decrease in traditional branch banking. At the
same time, customers are doing more banking at
in-store branches, thanks to the convenience of
being able to bank where they shop. This trend led
to a repositioning of our branch network through
consolidation of some traditional branches, and
strategically migrating branch services to in-store
branches. In 2012, we replaced the Ewa Beach
Branch with an in-store branch with extended
hours at the brand new Safeway in Ewa Beach’s
Laulani Village Shopping Center. We also renovated
the Safeway Piilani In-Store Branch, which is the
second Maui in-store branch.
Branches and Banking Centers
Despite the decrease in their use, banking
experts agree that traditional branches will not
go away completely, as they are still an important
channel for developing relationships with
customers, growing sales, and helping customers
find solutions to more complex financial needs.
They will evolve from transactions-based
destinations to a financial solutions destination.
A number of our branches also serve as banking
centers, where experts in Mortgage Banking,
Investment Services, Personal Banking, and
Business Banking are on hand to provide these
specialized financial services. These banking
centers are located in branches that serve major
metropolitan markets—Ala Moana, Kailua, Kapolei,
Main Branch in Downtown Honolulu, Pearlridge,
Waialae-Kahala, and Waikiki on Oahu, and Kona
on Hawaii Island.
5
improving resiliency to protect data centers
from events like power outages. We continued
to strengthen security and data protection to be
responsive to elevated threats faced by financial
institutions. We also continued to use cloud-based
virtualization technology to reduce technology
infrastructure cost.
We rolled out automation tools and collaboration
software that makes it easier for our business
groups to work together and share information
companywide. This allows us to access databases
and reports that help us serve customer needs
in a more comprehensive way as well as use the
information to develop new business opportunities.
CO M P R E H E N S I V E W E A LT H
M A N AG E M E N T S E RV I C E S
For more than a century, Bank of Hawaii has helped
generations of families preserve and grow their
wealth through our tailored, comprehensive wealth
management services. Our team approach provides
a complete range of highly personalized financial
services including investment management;
financial, estate and charitable planning; trust
and probate administration; income tax services;
and fiduciary real estate management services.
Investment Services
The bank’s Investment Services Group (ISG) is
the largest Hawaii-based provider of fiduciary
and investment services in the state. For example,
Hawaiian Tax-Free Trust, which is managed by
our investment team and is the first and largest
municipal bond fund in the state, reached record
asset levels in 2012 reflecting investor confidence
in the fund and the expertise of our investment
group. This expertise is applied in serving ISG’s
wealth management clients with a full range of
investment solutions.
Because we set extremely high standards for our
team of wealth management advisors, we invest in
their continuing education. Currently our staff has
more than 50 accreditations—Certified Wealth
Strategist (CWS), Certified Trust & Financial
Advisor (CTFA), Certified Investment Management
Analyst (CIMA), Certified Financial Planner (CFP),
Certified Public Accountant (CPA), and Chartered
Financial Analyst (CFA)—that carry the highest
degree of professional skills and technical
expertise. Our commitment to our team’s ongoing
education enables us to provide our clients with
the most current and comprehensive financial
information to assist them in achieving their goals.
In 2012, we made enhancements to our financial
planning program, allowing us to better identify
our clients’ life goals so that we can continue to
meet and exceed their individual financial needs.
At Bank of Hawaii, our commitment
to our customers is a shared trust—
one that springs from the confidence
placed in us, and our determination
to honor that trust in every aspect
of our service.
As a part of this trend, in 2012 we closed or
consolidated several branches including Aikahi
Park Branch, Ewa Beach Branch, Laie Branch, and
Waikele Branch on Oahu, and Kohala Branch on
Hawaii Island. We also relocated our Kona Branch
to the new Kona Banking Center, the first of its
kind on the neighbor islands. In 2013, we will
relocate our Ward Plaza branch to new ground
floor facilities at Hokua at 1288 Ala Moana. We
will also close our two American Samoa branches
as a way of centralizing our footprint back to our
core Hawaii and Guam markets.
O U R T EC H N O LO GY SYS T E M S
There’s an unseen but critical side to the bank’s
ability to deliver a full range of financial products
and services efficiently, quickly and securely—
our technology systems.
Essentially, we serve two audiences—our
customers who expect financial services that
are convenient, comprehensive, easy to access
and secure, and our staff who are committed
to delivering them with the highest level of
professionalism and service. In today’s technology
driven world, the interface between the two is
our technology systems.
Information Technology
In 2012, we made significant investments in
upgrading our infrastructure to improve the
bank’s data center network—from adding capacity
to provide more functionality to our users, to
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We also expanded our service that allows Chinese
businesses, investors and visitors to use their
China UnionPay (CUP) debit and credit cards to
withdraw cash at any Bank of Hawaii ATM and
make purchases at our merchant terminals. We
did this by adding more merchant service terminal
customers accepting the CUP card, including the
entire University of Hawaii system.
Because of IBD’s language skills and cultural
knowledge, we also serve as relationship managers
for our Asian clients, helping to facilitate services
from our other business units.
At Bank of Hawaii, our commitment to our
customers is a shared trust—one that springs
from the confidence placed in us, and our
determination to honor that trust in every aspect
of our service.
On the following pages, some of our customers
talk about their experiences in the many
ways we do business with them—providing
the highest value, service and benefit to meet
their expectations and needs.
Clients have positively responded to these
customized solutions that utilize both our open
architecture investment platform and creative
lending programs.
G E T T I N G D OW N TO B U S I N E S S
Whatever the business, it’s our business to help
it grow and prosper. Whether a sole proprietor,
a small- or medium-sized enterprise, a large
corporation, or an international business, we
are committed to providing the services needed
to help them reach their financial goals.
Commercial/Corporate Banking
Our Commercial Banking Group continues to
build and support longstanding relationships
with mid-sized companies and large corporations
in Hawaii. Our experienced team of commercial
and corporate bankers provides sophisticated
funding solutions and recommendations for a broad
range of needs—from commercial real estate and
construction loans to equipment financing and
cash management solutions. The team works
closely with other business units across the bank,
such as Private Client Services, Business Banking,
and Investment Services to help clients meet all
their financial goals.
Business Banking
Since small businesses account for more than
95 percent of companies in Hawaii, we continue
to serve this important market by providing a
wide range of deposit and loan products, including
government-guaranteed loans; merchant services;
and convenient phone and online access to
accounts. Once again in 2012, we led all lenders
in the state with 103 SBA guaranteed loans, which
earned us the U.S. Small Business Administration’s
Lender of the Year Award for Hawaii. We are proud
to have received this prestigious award in eight out
of the past ten years.
International Banking
As the only local bank with an International
Banking Division (IBD), we serve clients from
Asian countries such as China, Japan and Korea
who have financial interests in Hawaii and the
Pacific. Through IBD, we are in a unique position
to connect business leaders in Asia with their
counterparts in a broad cross-section of Hawaii’s
business community. For example, in 2012, we
hosted a mini Hawaii-China Business Leader
Forum for 17 top Hawaii business leaders and
11 Chinese CEOs. Round-table sessions allowed
them to meet one-on-one to introduce their
companies to each other and explore potential
business opportunities. As a result, several
business leads and new accounts were generated.
We plan to host more seminars for other groups
to help them connect with the Asian market.
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B U S I N E S S B A N K I N G C L I E N T
KOMODA STOR E & BA K ERY
Calvin Shibuya: Like Bank of
Hawaii, our fourth-generation
business has been around for a
long time and has evolved over
the years. In 1916 my wife Betty’s
grandparents, Takezo and Shigeri
Komoda, opened a general store,
selling everything from chicken
feed to clothing. No such thing as
“big box” chains back then. Maui
families relied on us for their dry
goods and fresh produce.
Later, in the early ‘50s, we started
a bakery and sold bread, cakes
and donuts. We quickly became
known for our popular cream
puffs and stick donuts (five donut
holes on a skewer), which remain
omiyage favorites. Everything was
made with quality ingredients by
hand, like it is today. In fact our
chief baker, who is in his eighties,
continues to amaze us and serves
as an inspiration to everyone.
Bank of Hawaii has been our
partner since 1999. My daughter
Michele used to work at the bank
on Oahu before transferring to
the Kahului branch, where she
was an assistant branch manager
for several years before joining
our business.
I really like working with the
bank. They make it easier for
me to run our company. They
handle our payroll through
Ceridian, which has been a big
relief—allowing me more time
as a manager and baker.
About two years ago, our
company got its first loan ever.
We had been paying cash for
everything before then. But
when I decided to upgrade our
old refrigerator and freezer units
with more cost-efficient Energy
Star appliances, and install a
photovoltaic system to save
on energy costs, we turned to
Bank of Hawaii. Taking out a
loan was a brand new experience,
and Greg Knue made it easy by
walking us through the process.
The PV system is currently being
installed, and we look forward to
the cost savings.
Another way the bank has been
invaluable is through the social
events they host on Maui a few
times a year. They do a lot to say
“thank you” to their customers.
At these events we are able to
meet Bank of Hawaii specialists
and other business people in our
community and exchange ideas,
suggestions and experiences
to help our business grow.
We really enjoy working with
everyone at the bank, including
Lolita Feliciano, in Personal
Banking at the Kahului branch,
and all of the employees at the
Pukalani branch.
I also work with Joan Martin
of Private Client Services for
my personal investments and
financial needs. She takes good
care of me. I like the fact that all
of these services are handled by
one institution—a one-stop shop.
I also recently used the bank’s
income tax services, which was
a tremendous help.
We are fortunate to have this
relationship with Bank of Hawaii.
They are very professional and
provide us with good advice. I
can’t think of any other banking
institution that cares about our
company like Bank of Hawaii does.
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From left: Calvin Shibuya, Betty
Shibuya, Kyoko Komoda, Ikuo
Komoda, and Michelle Shibuya.
9
Dr. Bobby Baker with Pacific
Cancer Institute’s new sterotactic
radiosurgery system.
10
C O M M E R C I A L B A N K I N G A N D P R I V A T E C L I E N T S E R V I C E S C L I E N T
DR . BOBBY BA K ER
As founder and president of
the Pacific Cancer Institute of
Maui, I’ve learned that having
a financial partner that I can
trust and rely on is critical
to the growth and success of
our business.
I’ve been a client of Bank of
Hawaii since moving to Maui
in 1994. At the time, I had
already started four cancer
centers across the U.S. and
Guam but was new to the islands.
The late Mike Lyons, who was
then the bank’s Maui district
manager, introduced me to
many leaders in the community
and this allowed me to establish
relationships that were necessary
to build our cancer center.
What I really like about
working with Bank of Hawaii
is having a team of astute,
capable professionals that I know
I can count on. They are always
readily available to answer my
questions and help me take care
of financial matters on both the
business side and personal side.
Institute’s financial services
needs. They are knowledgeable
and very personable, and I
consider them as friends, more
than just bankers.
Much of the banking we do
at the Institute is electronic—
everything from payroll to
accounts payable and receivable—
and Bank of Hawaii makes the
process easy and efficient.
As a board-certified radiation
oncologist, I value precision.
I’m a perfectionist for my patients,
and I always seek to minimize
risk. That’s my forte, and it’s one
of the reasons the Pacific Cancer
Institute of Maui recently
established a stereotactic
radiosurgery program (SRS/
SBRT). This state-of-the-art
medical technology enables us
to treat small tumors in the brain,
lung, liver, pancreas and other
areas that were previously hard
to precisely target. It is one of the
most precise cancer treatments
in the world, and we’re proud to
introduce it in Hawaii.
Galen Nakamura and Karen
Frampton, of Commercial
Banking, assist me with the
When you are precision based,
you also tend to be conservative.
That’s why I like Bank of Hawaii.
It is prudent in its operations and
provides safety and security for
its clients. It’s comforting to see
the bank consistently recognized
as one of the top financial
institutions in the country. I like
to tell my friends on the mainland
to consider moving their money
to Bank of Hawaii.
In terms of our personal finances,
my wife Julie and I enjoy working
with our private banker Joan
Martin. She knows our family
and is always there to assist.
Whether it’s helping us transfer
funds to our son who is away
at college or assisting us with
investment decisions, she
understands our needs and
relates with us on a personal level.
Maui is a small, close-knit
community, and I like that. I was
born and raised in a Kentucky
town of 3,000 residents. I enjoy
being active in the community,
and it’s nice to know that my
bank shares those same values
and supports some of the same
nonprofit organizations that
I do, including the Boy Scouts
of America, United Way and the
Pacific Cancer Foundation.
11
C O R P O R A T E B A N K I N G C L I E N T
T HE QUEEN ’ S HE A LT H S YST EMS
Art Ushijima: The Queen’s
Health Systems has been a
longtime Bank of Hawaii client.
Our relationship with the bank
dates back to the 1950s. As our
organization has grown, the
bank has been there to support
us. In 1985 we established The
Queen’s Health Systems as a
not-for-profit parent corporation
to bring expanded healthcare
capabilities to the people of
Hawaii and the Pacific Basin.
Today we encompass a family
of 10 healthcare-related
companies, and we continue
to rely on the bank for our
financial services needs.
We appreciate the fact that
Bank of Hawaii consistently
ranks among the top banks in
the country. That’s important
to us because it illustrates the
focus that the bank places on
its business and how it serves its
customers and the community.
We are all fortunate to have
a financial institution of this
caliber here in Hawaii.
Rick Keene: As a local
organization, we try to work
with local companies to the
extent that we can. When we
do work with large firms and
vendors outside of the state, our
relationship with Bank of Hawaii
and its stature and credibility are
an asset.
The bank provides us with a
wide range of services, including:
corporate banking, commercial
lending, refinancing, cash
management, investment
management, merchant services,
employee benefits-related
services and ATMs.
Donovan Koki, in Corporate
Banking, is my primary contact
and a great “go-to” guy. He is
diligent, hard working and
extremely responsive. Whenever
I call him with a question or an
issue—whether it involves his
immediate area or a different
department—he is readily
available to assist me. In fact he
is so responsive, I have to remind
him that it’s okay to get away
from his desk from time to time.
Having previously worked at
Bank of Hawaii and now being
a client of the bank, I have a
great deal of respect for the
organization and its people.
I think it’s a high quality
institution, and I am proud
to have worked there and to
do business with it today.
Art: Serving the Hawaii
community is an integral part of
the role of The Queen’s Health
Systems. The Queen’s Medical
Center, founded by Queen Emma
and King Kamehameha IV in 1859,
is the oldest and largest private
hospital in the state, serving more
than 24,000 inpatient admissions
and nearly 300,000 outpatients
annually. Our mission is to serve
the healthcare needs of Native
Hawaiians and all of the people
of Hawaii. This is consistent
with the bank’s focus on Hawaii
and the work they do in our
community.
Rick: Bank of Hawaii and its
employees care about our
community. One of the ways
they demonstrate this is through
the bank’s annual employee
giving campaign, in which staff
members select several nonprofit
organizations to support. This
past year, The Queen’s Medical
Center was extremely pleased
and honored to be among the
recipients of this fundraising
effort. It was another reminder
to us of the commitment we share
with the bank and its people to
work together to strengthen the
communities we serve.
12
From right: Art Ushijima, President
& Chief Executive Officer, and
Rick Keene, Senior Vice President
& Chief Financial Officer.
13
David, Cheree and Caleb Wee
at their Kapolei home on Oahu.
14
R E T A I L C L I E N T
DAV ID W EE A ND FA MILY
Bank of Hawaii has been a
part of my life since childhood.
My parents were dedicated
customers, and they taught me
about the importance of saving
and managing money. When I was
in eighth grade, my father helped
me open a checking account at
the Mililani Safeway branch, and
I’m proud to say that I’ve been a
loyal Bank of Hawaii customer
ever since.
I’m a fabric worker at Pearl
Harbor Naval Shipyard, and
my wife Cheree is a speech
therapist/rehab manager at
a nursing facility in Honolulu
and a real estate agent. We
have very busy schedules, and
the bank makes it easy for us to
manage our money. Their online
banking service enables me
to keep track of our checking
and savings accounts. My wife
especially likes to use Bank of
Hawaii’s ATMs for withdrawals
and deposits.
In this digital age, I’ve come
to really appreciate the service
we receive in the branches.
Recently we moved to Kapolei
and quickly fell in love with the
branch there. What I like is that
the staff treats you like you are
a $40 million customer. They are
extremely friendly, attentive and
helpful. I can tell they really care
about the people they serve.
In particular, Debbie Staples
of the Kapolei Banking Center
has been fantastic. When
Cheree and I decided to invest
in a photovoltaic (PV) system
for our home, we were anxious
to take advantage of the bank’s
new home equity line of credit
specifically tailored for PV
systems. Debbie did a great
job of explaining everything
and made the process seamless.
I am happy with our new system,
but I am really happy with how
Bank of Hawaii structured this
special credit line. They really
researched this from an industry
and tax standpoint and designed
an ideal payback plan. As a result,
our payments won’t start until our
tax refund arrives—which is a
huge help for our finances.
Bank of Hawaii has always been
there for us. When my father
unexpectedly passed away at
work two and a half years ago,
it was the hardest time in my life.
He and my mother had worked
together as physicians in
private practice. Thankfully,
the Mililani Branch Manager
Wayne Takahashi and Consumer
Banking Representative Jessica
Weaver helped us tremendously
with all of the financial paperwork
for the medical practice. That was
over the course of a year and a
half. They took care of our family
during a tough time, and that
kind of relationship is rare in
today’s world.
I wouldn’t trade the relationship
that I have with my bank for
anything. You can get all of the
financial services at Bank of
Hawaii that the mainland banks
offer plus incredible personal
service. We plan on encouraging
our son Caleb to start saving
money with Bank of Hawaii as
soon as he is old enough. I’m a
satisfied customer, and I feel
extremely honored to share
my story.
15
Clockwise from top: Pumping iron in the
downtown gym are first-time marathon finisher
Stacey Ouchi of Accounting Services and
Carolyn Yoshihara of Centralized Administrative
Services; processing deposits: Edgar Valenzuela
and Gerry Ancog-Thompson of Transaction
Processing Operations; lunching at Café Blue:
Sherry Serrano of Executive Administration,
Austin Bunag of Loan Origination, and Piper
Hites-Ferrell of Residential Loan Origination;
Innovation Manager Jamie Champagne
facilitates a Design Thinking training session
with Tracy Tom of Automated Clearinghouse
Operations and Noreen Dunn of Lockbox
Operations; Tina Murphy of Training & Support
Center oversees a teller training session with
Rico Yabut of Main Banking Center, Suzy Brady
of Safeway Kaneohe In-Store Branch, and Chase
Lee of Main Banking Center.
C O M M I T T E D T O O U R E M P L O Y E E S
Providing Opportunities for Our
Employees to Grow, Connect and Thrive
At Bank of Hawaii we believe that
our people are the foundation of
our business and our greatest
asset. Our employees’ talents
and passion drive innovation and
customer value, which propel new
levels of excellence and financial
success. We are committed to a
culture of learning, engagement,
and exceptional performance that
help our employees grow, connect
and thrive throughout their
careers at the bank.
To attract and retain the most
talented people for our business,
we recognize the need to invest
in their personal and professional
development. Our robust training
curriculum ensures that everyone
who works with us has access to
development opportunities to
pursue their career aspirations
and personal dreams. In 2012,
we launched a senior leader
development series and Design
Thinking sessions to foster a
higher level of innovation at
the bank.
In 2012, we introduced a friendly
competition among our branch
staff as a fun way to promote
customer service standards and
product knowledge. The Bankoh
Genius Bowl was a hit, with the
entire company cheering on their
favorite teams in the live, final
playoff. The competition was so
successful that all employees will
be invited to compete in 2013.
Using social media techniques
and tools, in 2012 we invested
in creating a more interactive
experience on our intranet to
increase information flow and
collaboration across the company.
We added video capability and
other features to make the site
more compelling and user-centric.
Bank of Hawaii also provides our
employees with the opportunity
to take charge of managing and
improving their health and
general wellbeing. In May 2012 we
reopened our renovated downtown
cafeteria—Café Blue—with a new
name, look, vibe and a new menu
that includes fresh and healthy
dining options at a discount for
employees. Beyond the image
of the conventional cafeteria,
Café Blue is a place to rev up
the morning with a cup of coffee,
connect with friends, and even
get a little business done.
The 2011 opening of a gym in our
downtown location that is free
to all employees proved to be so
popular we extended the hours
for the more than 850 members.
We’ve also introduced regular
“Thrive Thursday” sessions
during the lunch hour where
employees can choose to learn
from experts on a variety of
health and wellbeing topics such
as disease management, elder care
options, healthy eating choices,
fitness activities and relaxation
techniques. For those who prefer
an after-work workout, for a fee,
our employees may enroll in yoga,
Zumba, and boot camp classes.
We also provide free gym access
for employees at our Kapolei
facility, and because of our
employees’ response to care for
their health, a new gym is being
planned for our Central Processing
Facility in 2013.
Our employees are the reason
for our success and the future
of our company. Investment in
our employees’ development,
engagement and wellbeing is an
investment in the long-term future
of Bank of Hawaii.
17
C O M M I T T E D T O O U R I S L A N D C O M M U N I T I E S
Raising Hope for a Better Tomorrow
Our employees also donate their
own funds to local organizations
through our annual Employee
Giving Campaign and Bank of
Hawaii Community Walk, which
raises funds for organizations that
lack resources to hold a walk of
their own. In 2012, our employees
raised more than $617,000 for
the community through these
two fundraisers.
The total contributions to the
community by Bank of Hawaii
and its employees and retirees,
and Bank of Hawaii Foundation,
was $2.5 million.
At Bank of Hawaii we put our
actions where our hearts are, to
help brighten the future for us all.
At Bank of Hawaii we recognize
the importance of supporting our
communities and assisting those
in need. We focus on ways we
can consistently make a positive
impact in the communities where
we live, work and raise our families.
Our most important resource—
our employees, retirees and their
families—volunteer thousands
of hours of their time each year
through company-sponsored
events to help meet community
needs. In 2012, our volunteers
participated in 78 community
service events, donating 5,950
hours of their time.
We have a special affinity for
supporting programs providing
educational opportunities and
accessible resources that help
families achieve financial security.
Our volunteers spend hundreds
of hours each year participating
in programs that range from
teaching elementary students the
value of saving, to providing free
income tax preparation services
to low- to moderate-income
families, to teaching our kupuna
how to protect themselves from
financial fraud.
18
Clockwise from top: Nearly 2,000 of our Bank of Hawaii ‘ohana
turned out for our 2012 Bank of Hawaii Community Walk on
Oahu that benefited Honolulu Zoo Society, Ronald McDonald
House Charities of Hawaii, and Variety School of Hawaii; retiree
Elsie Miyamura and Lisa Goo of Kaimuki Branch were among
the volunteers who helped the Hawaii Public Housing Authority
refurbish 10 vacant units at Waimaha housing complex in Waianae;
Senior Vice President and Metro Windward Oahu Regional
Manager Danny Kim teaching a third grader at Jefferson
Elementary about the importance of saving; Tia Lewis (daughter
of Paula Lewis of Deposit Maintenance Center), Christine Tamura
of ATM Servicing, and Walter Villalba of Operations Group
Administration prepare the 2012 Bank of Hawaii Book Swap
seeded with more than 4,000 books donated by bank employees.
19
F I N A N C I A L S
C O N S O L I DAT E D S TAT E M E N T S O F I N C O M E
Bank of Hawaii Corporation and Subsidiaries (dollars in thousands, except per-share amounts)
F O R T H E Y E A R E N D E D D E C E M B E R 3 1
2012
2011
Interest Income
Interest and Fees on Loans and Leases
Income on Investment Securities
Available-for-Sale
Held-to-Maturity
Deposits
Funds Sold
Other
Total Interest Income
Interest Expense
Deposits
Securities Sold Under Agreements to Repurchase
Funds Purchased
Long-Term Debt
Total Interest Expense
Net Interest Income
Provision for Credit Losses
Net Interest Income After Provision for Credit Losses
Noninterest Income
Trust and Asset Management
Mortgage Banking
Service Charges on Deposit Accounts
Fees, Exchange, and Other Service Charges
Investment Securities Gains (Losses), Net
Insurance
Other
Total Noninterest Income
Noninterest Expense
Salaries and Benefits
Net Occupancy
Net Equipment
Professional Fees
FDIC Insurance
Other
Total Noninterest Expense
Income Before Provision for Income Taxes
Provision for Income Taxes
Net Income
Basic Earnings Per Share
Diluted Earnings Per Share
Dividends Declared Per Share
Basic Weighted Average Shares
Diluted Weighted Average Shares
$
257,896
$
262,239
65,972
94,952
9
533
1,127
420,489
12,376
28,897
21
1,924
43,218
377,271
979
376,292
45,229
35,644
37,621
48,965
(77)
9,553
23,351
200,286
184,408
42,965
19,723
9,623
7,873
69,696
334,288
242,290
76,214
103,363
72,138
8
828
1,117
439,693
18,321
29,171
20
1,973
49,485
390,208
12,690
377,518
45,046
14,664
38,733
60,227
6,366
10,957
21,662
197,655
182,816
43,169
18,849
8,623
9,346
85,390
348,193
226,980
66,937
$
$
$
$
166,076
3.68
3.67
1.80
45,115,441
45,249,300
$
$
$
$
160,043
3.40
3.39
1.80
47,064,925
47,224,981
Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012 for the
20
Consolidated Financial Statements, including Report of Independent Registered Public Accounting Firm, thereon.
C O N S O L I DAT E D S TAT E M E N T S O F C O N D I T I O N
Bank of Hawaii Corporation and Subsidiaries (dollars in thousands)
A S O F D E C E M B E R 3 1
2012
2011
Assets
Interest-Bearing Deposits
Funds Sold
Investment Securities
Available-for-Sale
Held-to-Maturity (Fair Value of $3,687,676 and $3,754,206)
Loans Held for Sale
Loans and Leases
Allowance for Loan and Lease Losses
Net Loans and Leases
Total Earning Assets
Cash and Noninterest-Bearing Deposits
Premises and Equipment
Customers’ Acceptances
Accrued Interest Receivable
Foreclosed Real Estate
Mortgage Servicing Rights
Goodwill
Other Assets
Total Assets
Liabilities
Deposits
Noninterest-Bearing Demand
Interest-Bearing Demand
Savings
Time
Total Deposits
Funds Purchased
Securities Sold Under Agreements to Repurchase
Long-Term Debt
Banker’s Acceptances
Retirement Benefits Payable
Accrued Interest Payable
Taxes Payable and Deferred Taxes
Other Liabilities
Total Liabilities
Shareholders’ Equity
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2012 - 57,319,352 / 44,754,835;
and December 31, 2011 - 57,134,470 / 45,947,116)
Capital Surplus
Accumulated Other Comprehensive Income
Retained Earnings
Treasury Stock, at Cost (Shares: December 31, 2012 - 12,564,517;
and December 31, 2011 - 11,187,354)
Total Shareholders’ Equity
Total Liabilities and Shareholders’ Equity
$
3,393
185,682
$
3,036
512,384
3,367,557
3,595,065
21,374
5,854,521
(128,857)
5,725,664
12,898,735
163,786
105,005
173
43,077
3,887
25,240
31,517
456,952
13,728,372
3,367,185
2,163,473
4,399,316
1,599,508
11,529,482
11,296
758,947
128,055
173
47,658
4,776
88,014
138,306
12,706,707
571
515,619
29,208
1,084,477
(608,210)
1,021,665
13,728,372
3,451,885
3,657,796
18,957
5,538,304
(138,606)
5,399,698
13,043,756
154,489
103,550
476
43,510
3,042
24,279
31,517
441,772
13,846,391
2,850,923
2,005,983
4,398,638
1,337,079
10,592,623
10,791
1,925,998
30,696
476
46,949
5,330
95,840
135,021
12,843,724
$
$
571
507,558
35,263
1,003,938
(544,663)
1,002,667
13,846,391
$
$
$
$
Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012 for the
Consolidated Financial Statements, including Report of Independent Registered Public Accounting Firm, thereon.
21
F I N A N C I A L S
2 0 1 2 R E L AT I V E P R I C E P E R F O R M A N C E
$135
$130
$125
$120
$115
$110
$105
$100
$95
$90
22
M A R C H 3 1
J U N E 3 0
S E P T 3 0
BOH
S&P Bank Index
S&P 500 Index
U N B R O K E N H I S T O R Y O F D I V I D E N D S
R E C E S S I O N
R E C E S S I O N
R E C E S S I O N
$2.00
$1.75
$1.50
$1.25
$1.00
$0.75
$0.50
$0.25
$0.00
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
Historical dividends adjusted for stock splits
23
M A N AG I N G C O M M I T T E E
Bank of Hawaii Corporation / Bank of Hawaii (As of December 31, 2012)
24
Peter S. Ho
Chairman, President, and
Chief Executive Officer
Peter M. Biggs
Vice Chairman and
Chief Retail Officer
Sharon M. Crofts
Vice Chairman
Operations Group
Administration
Wayne Y. Hamano
Vice Chairman and Chief
Commercial Officer
Alton T. Kuioka
Vice Chairman of Board of
Directors of Bank of Hawaii
Kent T. Lucien
Vice Chairman and
Chief Financial Officer
Mark A. Rossi
Vice Chairman, Chief
Administrative Officer,
General Counsel &
Corporate Secretary
Mary E. Sellers
Vice Chairman and
Chief Risk Officer
Donna A. Tanoue
Vice Chairman Client and
Community Relations
Vincent E. Barfield
Senior Executive
Vice President Investment
Services Group
Derek A. Baughman
Senior Executive Vice
President and Chief
Information Officer
Jill F. S. Higa
Senior Executive Vice
President Retail Banking
Derek J. Norris
Senior Executive Vice
President and Controller
James C. Polk
Senior Executive
Vice President
Commercial Banking
Group
Dean Y. Shigemura
Senior Executive Vice
President and Treasurer
(First Row) Peter S. Ho, Donna A. Tanoue, Mark A. Rossi, Alton T. Kuioka, Sharon M. Crofts
(Second Row) Peter M. Biggs, Mary E. Sellers, Wayne Y. Hamano, Kent T. Lucien, Derek J. Norris
(Third Row) James C. Polk, Dean Y. Shigemura, Derek A. Baughman, Jill F. S. Higa, Vincent E. Barfield
25
B OA R D O F D I R E C T O R S
Bank of Hawaii Corporation / Bank of Hawaii (As of December 31, 2012)
S. Haunani
Apoliona*
Trustee
Office of
Hawaiian Affairs
Mary G. F.
Bitterman*
President
and Director
The Bernard Osher
Foundation
Mark A. Burak*
Retired Executive
Vice President
Bank of America
Michael J. Chun*
Retired President
and Headmaster
Kamehameha
Schools-Kapalama
Clinton R.
Churchill*
Trustee
The Estate of
James Campbell
David A. Heenan*
Trustee
The Estate of
James Campbell
Peter S. Ho*
Chairman, President
and Chief Executive
Officer
Bank of Hawaii
Corporation and
Bank of Hawaii
Robert A. Huret*
Managing Member
FTV Management
Company, LP
Alton T. Kuioka
Vice Chairman
Client Relations
Bank of Hawaii
Kent T. Lucien*
Vice Chairman
and Chief
Financial Officer
Bank of Hawaii
Corporation and
Bank of Hawaii
Martin A. Stein*
Partner
RSA Ventures
Donald M. Takaki*
Chairman and CEO
HawkTree
International, Inc.
Barbara J. Tanabe*
Owner and Partner
Ho‘akea
Communications LLC
Donna A. Tanoue
Vice Chairman
Client and
Community Relations
Bank of Hawaii
Robert W. Wo*
Owner and Director
C.S. Wo & Sons, Ltd.
26
*Bank of Hawaii Corporation Board of Directors
B A N K O F H AWA I I L O C AT I O N S
Commonwealth of the
Northern Mariana Islands/Saipan
Kauai
Oahu
Molokai
Maui
Niihau
Guam
Lanai
Kahoolawe
Republic of Palau
Hawaii
State of Hawaii
P A C I F I C O C E A N
Map not shown to scale
American Samoa
Facts: Hawaii, Guam and American Samoa
H AWA I I
Hawaii business establishments: 98 percent
have fewer than 100 employees, 95 percent
have fewer than 50, and 52 percent have fewer
than five.1
Hawaii gross domestic product by state (GSP)
in 2011: $66.9 billion.2
Largest shares of Hawaii gross domestic product:
government (including federal civilian, federal
military, and state and local), 24.7 percent;
real estate, rental and leasing, 16.3 percent;
non-financial professional, technical,
administrative, management and information
services, 8.3 percent; accommodation and food
services, 8.1 percent; retail trade, 6.9 percent;
health care and social assistance, 6.7 percent.
Tourism’s direct and indirect impact on Hawaii
gross domestic product (includes portions of
the above): 15.9 percent.3
State of Hawaii resident population as of
July 1, 2011: 1,374,810.4
G UA M
- U.S. Territory
- Capital: Hagåtña (Agana)
- Resident population: July 2012 estimate 159,9145
- Main industries: U.S. military and tourism.
A M E R I C A N S A M OA
- U.S. Territory
- Capital: Pago Pago
- Resident population: July 2012 estimate 54,9475
- Main industries: tuna fishing and tuna processing
plants; tourism is a promising developing sector.
Bank of Hawaii Branches and ATMs
(As of December 31, 2012)
Branches &
In-Store Branches
ATMs
State of Hawaii
Island of Oahu
Island of Hawaii
Island of Maui
Island of Kauai
Island of Lanai
Island of Molokai
American Samoa
West Pacific
CNMI/Saipan
Guam
Palau
65
37
11
11
4
1
1
2
9
2
6
1
440
320
49
42
27
1
1
7
47
7
38
2
Grand Total
76
494
1 Table 15.18, Hawaii DBEDT State of Hawaii Data Book 2012
from the U.S. Census Bureau “2010 County Business Patterns:
Geographic Area Series: County Business Patterns by
Employment Size Class.”
2 Table 13.05, Hawaii DBEDT State of Hawaii Data Book 2011,
http://hawaii.gov/dbedt/info/economic/databook/db2011/
section13.pdf.
3 Bank of Hawaii calculation based on Tables 13.05 and 7.32,
Hawaii DBEDT State of Hawaii Data Book 2011 (2011 statistics),
http://hawaii.gov/dbedt/info/economic/databook/db2011/
section13.pdf and http://hawaii.gov/dbedt/info/economic/
databook/db2011/section07.pdf.
4 Table 1.06, Hawaii DBEDT State of Hawaii Data Book 2011,
http://hawaii.gov/dbedt/info/economic/databook/db2011/
section01.pdf.
5 Central Intelligence Agency (CIA), The World Factbook (2012).
27
Inquiries
Shareholders with questions about stock
transfer services, share holdings or dividend
reinvestment may contact Computershare
Investor Services, LLC at 1-888-660-5443
between 7:00 am and 5:00 pm Central
Standard Time.
Investors and Analysts Seeking
Financial Information
Cindy Wyrick, Executive Vice President
Investor Relations
Phone: 1-808-694-8430
For General Inquiries
Phone: 1-888-643-3888
www.boh.com
S H A R E H O L D E R I N F O R M AT I O N
Corporate Headquarters
Bank of Hawaii Corporation
130 Merchant Street, Honolulu, Hawaii 96813
Annual Meeting
The annual meeting of shareholders will be held
on Friday, April 26, 2013 at 8:30 am at the Bank of
Hawaii Main Office, 5th Floor, 111 South King Street,
Honolulu, Hawaii.
Transfer Agent and Registrar
Computershare Investor Services, LLC
250 Royall Street, Canton, MA 02021
Common Stock Listing
NYSE: BOH
The common stock of Bank of Hawaii Corporation
is traded on the New York Stock Exchange under
the ticker symbol BOH and is quoted daily in
leading financial publications as “Bank of Hawaii.”
Dividend Reinvestment
and Stock Purchase Plan (DRP)
Bank of Hawaii Corporation’s Dividend
Reinvestment and Stock Purchase Plan (DRP)
allows existing shareholders to purchase common
shares of the company’s stock by either reinvesting
their stock dividends or by optional cash payments.
- Individuals must possess at least one share of
the company’s stock to participate in the DRP.
- Shares are purchased on the 10th business day
of each month based on the average of five trading
days ending on the day of purchase.
- Minimum payment for purchase of shares is $25
and the maximum is $5,000 per calendar quarter.
- There are no fees for purchasing shares or for the
safekeeping of stock certificates. Fees are assessed
on the sale of shares in the DRP.
Detailed information about Bank of Hawaii Corporation’s
DRP can be found online at www.boh.com or by calling
Computershare Investor Services, LLC at 1-888-660-5443.
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Forward-Looking Statements
This report contains forward-looking statements
concerning, among other things, the economic
and business environment in our service area and
elsewhere, credit quality, and other financial and
business matters in future periods. Our forward-
looking statements are based on numerous
assumptions, any of which could prove to be
inaccurate and actual results may differ materially
from those projected because of a variety of risks
and uncertainties, including, but not limited to:
1) general economic conditions either nationally,
internationally, or locally may be different than
expected, and particularly, any event that
negatively impacts the tourism industry in Hawaii;
2) unanticipated changes in the securities markets,
public debt markets, and other capital markets in
the U.S. and internationally; 3) the competitive
pressure among financial services and products;
4) the impact of recent legislative and regulatory
initiatives, particularly the Dodd-Frank Wall
Street Reform and Consumer Protection Act
(the “Dodd-Frank Act”); 5) changes in fiscal and
monetary policies of the markets in which we
operate; 6) the increased cost of maintaining
or the Company’s ability to maintain adequate
liquidity and capital, based on the requirements
adopted by the Basel Committee on Banking
Supervision and U.S. regulators; 7) actual or
alleged conduct which could harm our reputation;
8) changes in accounting standards; 9) changes
in tax laws or regulations or the interpretation
of such laws and regulations; 10) changes in our
credit quality or risk profile that may increase
or decrease the required level of our reserve for
credit losses; 11) changes in market interest rates
that may affect credit markets and our ability to
maintain our net interest margin; 12) the impact
of litigation and regulatory investigations of the
Company, including costs, expenses, settlements,
and judgments; 13) any interruption or breach
of security of our information systems resulting
in failures or disruptions in customer account
management, general ledger processing, and loan
or deposit systems; 14) any failure in or breach of
our operational systems, information systems or
infrastructure, or those of our third party vendors
and other service providers; 15) changes to the
amount and timing of proposed common stock
repurchases; and 16) natural disasters, public
unrest, adverse weather, public health, and
other conditions impacting us and our customers’
operations. For a detailed discussion of these
and other risks and uncertainties that could
cause actual results and events to differ materially
from such forward-looking statements please
refer to the risk factors discussed in our Annual
Report on Form 10-K for the fiscal year ended
December 31, 2012, and any subsequently filed
reports with the U.S. Securities and Exchange
Commission. Words such as “believes,”
“anticipates,” “expects,” “intends,” “targeted,”
and similar expressions are intended to
identify forward-looking statements but are not
exclusive means of identifying such statements.
We undertake no obligation 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. Our subsidiary, Bank of Hawaii, was
founded in 1897 and is the leading independent
financial institution in Hawaii. For more information
about Bank of Hawaii Corporation, visit our website,
www.boh.com.
B A N K O F H A W A I I C O R P O R AT I O N
P.O. Box 2900
Honolulu, Hawaii 96846