Bank of Hawaii Annual Report 2014

FY2014 Annual Report · Bank of Hawaii

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Holo I Mua

MOVING FORWARD TOGETHER

2014 ANNUAL REPORT

Contents

Chairman’s Message
2014 Financial Summary
Year in Review
Client Profiles
Pulling Together to Strengthen Communities
Empowering Employees for Success
2014 Financial Report

1
3
4
8
16
18
20
23 Map of Locations
24 Managing Committee and Board of Directors
27
28 Shareholder Information

Bank of Hawaii Locations

Holo I Mua: Moving For ward Together

Bank of Hawaii’s “Reach Your Dreams” commercial began
airing in 2014, and features a community of highly respected
canoe builders and esteemed paddlers. Similar to the
teamwork required in constructing a canoe, Bank of Hawaii’s
commitment to collaboration is stronger than ever. Bank of
Hawaii employees work together to provide personalized tools
and services for clients, bringing them one step closer to
reaching their financial goals.

© 2015, Bank of Hawaii Corporation. Bank of Hawaii®, Bankoh®, MyBankoh Rewards®, and the Bank of Hawaii logo are
registered trademarks of Bank of Hawaii. SmartMoney Seminars, SimpliSavvy and Bankoh Advisors are trademarks of

Bank of Hawaii. iPhone® is a registered trademark, and Apple Pay™ is a trademark of Apple, Inc. Visa Signature® is a registered

trademark of Visa International Service Association and used pursuant to license from Visa U.S.A. Inc. World Elite MasterCard®

is a registered trademark of MasterCard Worldwide or a subsidiary. American Express® is a registered trademark of the American

Express Company. Hawaiian Airlines® is a registered trademark of Hawaiian Airlines, Inc. All other trademarks and service marks

appearing in this report are the property of their respective owners and no claim of ownership is made by their use.

C H A I R M A N ’ S M E S S A G E

Dear Fellow Shareholders,
Bank of Hawaii performed well again
in 2014. We concluded the year in
sound financial shape. We remain well
capitalized and well positioned for
2015. We continue our strategic
approach to managing your company
with a focus on building shareholder
value over time by leveraging our
unique market knowledge and brand
strength along with sound risk and
capital management and prudent
expense control. Hawaii and the
West Pacific remain our core markets.

Net income for the full year of 2014
was $163 million compared to
$150.5 million the prior year, an
increase of 8.3 percent. Diluted
earnings per share for the full year
of 2014 were up 9.2 percent to $3.69
from $3.38 in 2013. Our balance sheet
continued to strengthen with solid
growth in loans, up 13.2 percent to
$6.9 billion from the prior year.
Deposits were up 6 percent to
$12.6 billion year over year. Credit
quality remained solid and we saw
all key metrics moving in the right
direction throughout the year. Capital
ratios place us in the top quartile
among peer banks. Our equity
valuation, as measured by price-to-
book value, also remained in the top
quartile throughout the year. Expenses
for the full year were down $4.1 million,
or 1.2 percent, to $326.9 million from
$331.0 million in 2013.

Significant to this performance is it
was accomplished amidst a stagnant
interest rate environment. We returned
significant capital to shareholders
through our share repurchase program
while still managing to grow capital

and maintain our annual dividend of
$1.80 per share. Since the start of the
share repurchase program in July 2001
through the end of 2014, we have
repurchased 52.0 million shares and
returned more than $1.9 billion to
shareholders at an average cost of
$36.96 per share. Remaining buyback
authority stands at $73.2 million as of
Dec. 31, 2014.

Economy
In 2014, we were fortunate to benefit
from a relatively strong economy in
the islands. Hawaii’s unemployment
rate of 4 percent is among the lowest
in the nation. Tourism set another
record year in 2014. Visitor arrivals
increased 1.3 percent to nearly
8.3 million and total visitor expendi-
tures grew 2.3 percent to $14.7 billion.
This on top of several very strong
years of growth in the industry.

Hawaii’s housing market continued to
perform well with the median price of
a single-family home on Oahu topping
$700,000. Housing inventory remains
tight on Oahu with single-family
homes on the market for an average
of 23 days at end of 2014 and
condominiums on the market an
average of 22 days. Construction
activity, which had gotten off to a
slightly slower start than anticipated
a couple years ago, is now
accelerating with numerous major
residential condominium projects
underway and more in the pipeline in
Oahu’s urban core. Honolulu’s rail
transit project, currently estimated at
roughly $6 billion and the largest
public works project in the state’s
history, is progressing with an
anticipated completion date in 2019.

The strength of the economy was
clearly reflected in our lending activity.
We experienced broad-based growth
in commercial and consumer lending.
Commercial lending was up
11.9 percent to $2.83 billion compared
to $2.53 billion at the end of 2013.
Consumer loans increased
14.1 percent to $4.07 billion from
$3.57 billion at the end of 2013.

Barring unforeseen geopolitical
factors, we’d expect Hawaii’s
economy to continue its steady
course. However, we will keep an eye
on the broader global economy for

developments in Europe, Asia and
other regions that could have a
potential impact on our local economy.

Our strong performance reflects
the dedicated efforts of our 2,200
employees and the quality of our
customers. We were honored to once
again be recognized nationally for our
exceptional performance. Forbes
magazine ranked us the No. 2 top
performing large bank in the country.
This is the sixth year in a row that
Forbes has ranked Bank of Hawaii
among the top five and we are the
only bank in the country to be ranked
in the top five for all six years that
Forbes has conducted this ranking. In
addition, Bank of Hawaii is rated Aa3
by Moody’s Investor Services, making
it one of the highest-rated financial
institutions globally and nationally
(rating as of Sept. 2014).

Consistent Strategy
We continue to stay the course in
regard to our strategic plan, which has
served us well. Our 2014–2016
strategic plan contains many of the
same core initiatives that make up the
strategic foundation of our prior plan.
Important will be deepening customer
relationships, increasing efficiency,
supporting and engaging our
employees, leveraging our brand
strength and continuing to actively
manage risk and capital. The outcome
of our success will largely depend on
our ability to ensure all these
elements are achieved in harmonious
fashion. All elements are important.

Unique to the 2014–2016 plan will be
expanded emphasis on ensuring we
have the optimal customer delivery
channels for today’s environment,
on fine-tuning our products and
services to the unique needs of our
customers and on leveraging
technology to improve customer
experience and approval.

Customer-Centric Focus
Founded in 1897, we have a deep
history in the markets we serve,
and today have banking relationships
with more than 50 percent of Hawaii
households. As a community bank,
we believe banking should not be
complicated. Our job is to help
customers understand the products
and services in which they have an

B A N K O F H A W A I I 2 0 1 4 A N N U A L R E P O R T

C H A I R M A N ’ S M E S S A G E

interest, helping ensure the choices
are right for them.

The words “fast-paced” and “innovative”
have not traditionally come to mind
when describing the banking industry,
but that’s changing. Customers
already recognize and appreciate our
extensive branch and ATM network,
and we complement that accessibility
with a 24/7 call center and advanced
mobile capability. We continue to see
customers conduct more of their
business online and adopt new
mobile technologies.

By embracing a customer-centric
approach and using the knowledge
learned from conversations with
customers, we can provide the
appropriate products and levels of
service tailored to their individual
situations and stages in life. Some
customers have basic banking needs
while others—consumers and
businesses—have more complex
requirements. As highlighted in the
theme of this year’s annual report,
our commitment to building strong,
long-lasting, trusted relationships with
our valued customers allows us to
help them navigate toward a successful
and secure financial future.

Employees
We must continually ensure we not
only attract the best employees
but also retain them. We place heavy
emphasis on employee development
and training at all levels across the
organization. Developing talent is the
cornerstone to executing our plans
for the future. A wide breadth of
in-house training opportunities is
available for all levels of employees.
Also provided are specific courses
involving leadership development and
succession planning along with newly
introduced courses on employee
engagement and productivity.

We were proud to be named among
the top 10 best large companies to
work for in Hawaii Business
magazine’s “Best Places To Work”
annual survey. According to the
survey, Bank of Hawaii was also
ranked the No. 1 “Healthiest Company”
and No. 3 for “Most Family-Friendly.”

In January 2014, we launched our
Bank of Hawaii Foundation Scholarship

Fund for employees’ children and
grandchildren. In this inaugural year,
we were proud to provide
26 scholarships worth $91,000
to colleges across the country.
We look forward to expanding the
program in the years to come.

Community
Our roots in the community run deep.
Not just a company mantra, but an
embedded value, we believe in
investing in our local communities—
both with time and funding. Along
with being the state’s largest
independent financial institution
comes not only an obligation but also
an opportunity to make a positive
difference. Healthy banks need
healthy communities and vice versa.
I’m very proud of our “Bankoh Blue
Crew,” a dedicated team of employee
volunteers who are in the community
every week helping out a diverse
group of nonprofit organizations
accomplish their missions.

In 2014, employee volunteers
participated in 109 community-based
events—more than two per week—
investing 6,712 hours of their time.
Employees are encouraged to also
serve on boards of community
organizations and lend their expertise
to help guide these groups and offer
their leadership skills and professional
experience. You can read more
about community activities later in
this report.

We were honored to once again be the
top residential lender in the state in
both number of loans and dollar amount.
We were also proud to be recognized as
the SBA Hawaii top lender for Category 1
(large banks) and Hawaii’s Military Bank
of the Year by the U.S. Department of
the Navy. Additionally, we continue to
maintain our Community Reinvestment
Act “Outstanding” rating from the
Federal Reserve. And, we were proud to
receive for the first time the Community
Commitment Award from the American
Bankers Association.

Aloha and Mahalo to Dave Heenan
I want to wish a fond aloha to director
Dave Heenan, who retires from our
board at our 2015 annual shareholders
meeting. Dave served our organization
well for more than 30 years as a
member of the board. He also served

the past 14 years as chair of our
Human Resources and Compensation
Committee. His keen intellect and razor
sharp wit will certainly be missed, but
absolutely not forgotten. Mahalo Dave
and Nery for a job well done.

Holo I Mua—Moving
Forward Together
For more than a century, our
customers have trusted and
depended on Bank of Hawaii for their
banking needs. It is a trust that we
value and take seriously. Looking
ahead, we are excited about the
future. We have an exceptionally
strong leadership team and highly
dedicated and talented employees.

I’d like to welcome new board member
Victor Nichols, who will also serve on
the board’s Audit and Risk Committee.
He most recently served as Chief
Executive Officer of North America
and President of Global Consumer
Services for Experian, the leading
global information services company
providing data and analytical tools to
clients around the world. Victor’s
professional background and expertise
in strategic planning and information
technology will bring valuable
perspective to our board and his
global experience is well suited for the
rapidly growing role of technology in
the financial services industry.

I’d like to thank our entire board of
directors for their ongoing support,
guidance and involvement. I also want
to thank our shareholders for their
confidence and trust in Bank of Hawaii.
We are proud of our results and the
team that helped make us the
successful organization we are today.
We look forward to 2015 and “moving
forward together.”

With aloha,

Peter S. Ho
Chairman, President,
and Chief Executive Officer
Bank of Hawaii Corporation
and Bank of Hawaii

2014 Financial Summary

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

20 1 4

20 13

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
Long-Term Debt
Total Shareholders’ Equity
Book Value Per Common Share
Allowance to Loans and Leases Outstanding
Full-Time Equivalent Employees
Branches

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

163,0 42
3.7 1
3.69
1.80
1.14 %
15.50 %
2.85 %
58.41 %

59.3 1
6 1.73
52.70

6,897,589
1 4,787,208
12,633,089
1 73,9 12
1,055,086
24.13

1.58 %
2,16 1
74

41,19 1
0.95
0.9 4

1.12 %
15.39 %
2.8 4 %
57.03 %

150,502
3.39
3.38
1.80
1.10 %
1 4 .78 %
2.8 1 %
60.7 1 %

59.1 4
59.92
4 4.88

6,095,387
1 4,08 4,280
1 1,9 1 4,656
1 74,706
1,0 1 1,976
22.75

1.89 %

2,196
74

39,055
0.88
0.88

1.12 %
15.36 %
2.85 %
59.99 %

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).

B A N K O F H A W A I I 2 0 1 4 A N N U A L R E P O R T

Y E A R I N R E V I E W

Navigating Toward Success Together

For more than five generations Bank of Hawaii has been providing trusted expertise
to help thousands of families navigate their own financial waters, to help them
succeed in reaching their individual dreams and goals.

At Bank of Hawaii, we chart our course by looking
ahead to keep pace with emerging trends while we
work together to create lifelong relationships and
long-term growth and success for all of our
shareholders, customers, fellow employees and
community. A shared commitment to excellence is
what drives our dedicated employees from all areas of
our company. They are proud to work for an industry
leader, and to collaborate across the company.

One measure of our ongoing success is our legacy
of accomplishments. Bank of Hawaii continues to be
recognized globally, nationally and locally for our
commitment to excellence. Here are some of the
accolades received in 2014:

• Top Five Performing Banks, sixth consecutive year
by Forbes magazine

• Hawaii SBA Lender of the Year – Category 1
and SBA Veteran Lender of the Year

• Corporate Social Responsibility Leadership Award,
fourth consecutive year by Financial Services
Roundtable

• Military Bank of the Year, by U.S. Department
of the Navy

• Best Bank and Best Mortgage Company,
by Honolulu Star-Advertiser readers

• Best Bank, by Honolulu magazine readers

PROVIDING AN
EXCEPTIONAL CUSTOMER
EXPERIENCE

In an evolving banking industry,
Bank of Hawaii remains community-
based and focused on relationships.
We work hard to be accessible and to
deliver outstanding service online, on
the phone and mobile devices, at our
ATMs and in our branches and in-store
branches. Many of our customers
know our banking representatives by
their first names, and we know them
by theirs.

Online and Mobile Banking
More and more people are utilizing
personal technology for banking at
their convenience. Our mobile banking
experience offers customers an easy
way to conduct secure transactions,
such as viewing accounts, paying bills
and transferring funds. The use of
mobile check deposit capabilities,
introduced in August 2013, grew
steadily in 2014.

This year, the bank launched mobile
banking apps for both the Android
tablet and the Kindle Fire HD, making
it easier to bank on the go. The apps
feature layouts optimized for a tablet
screen, monthly cash flow charts,
dashboard displays of all accounts
plus detail screens for individual
transactions, and the ability to
deposit checks using a device’s
camera.

Credit Cards
In partnership with Hawaiian Airlines
and Barclays, we relaunched our
Hawaiian Airlines credit cards for
consumers and businesses in 2014.
The Hawaiian Airlines Bank of Hawaii
World Elite and Business MasterCards
offer special benefits designed to
appeal to travelers, such as bonus
HawaiianMiles, the absence of foreign

transaction fees and an EMV chip that
offers additional security against
potential fraud while authenticating
credit transactions. This is the first
chip card offered by a Hawaii bank.

In November 2014, we began offering
access to Apple Pay with our
Hawaiian Airlines Bank of Hawaii World
Elite MasterCards. It is the latest
technology for mobile payments, a
safe, secure and private way to pay
with a simple touch on an iPhone 6
or iPhone 6 Plus. We are currently
looking into offering Apple Pay for
our debit and other credit cards.

Our popular Bank of Hawaii Visa
Signature and American Express
MyBankoh Rewards Credit Cards
feature a unique and flexible rewards
program. In 2014, the number of
cardholders grew by 67 percent.

In 2014, Bank of Hawaii became the
first financial institution in Hawaii, and
one of the first in the nation, to offer
free FICO scores via a special
customer service website, which
provides service for all our consumer
credit cards.

Social Media
To work together effectively, we need
to stay in touch. Bank of Hawaii
continues to have the largest social
media presence of any local bank,
with followers on Facebook, Twitter,
Instagram, LinkedIn, Google+ and
YouTube. Our social media activities
continue to expand, and the growing
number of fans who “like” and share
our messages via these channels
demonstrate their relevance and
value to customers and the general
public. In addition to providing
information on our products and
services, we also use the platforms
to respond to customer questions,

Hawaiian Airlines Bank of Hawaii World
Elite MasterCard, plus the Bank of Hawaii
MyBankoh Rewards Credit Cards: American
Express and Visa Signature.

share the latest Bankoh job opportu-
nities and highlight our community
service activities and corporate
partnerships. This year, we also
introduced SimpliSavvy, a free mobile
game that garnered local and national
attention while demonstrating the
flexibility of our MyBankoh Rewards
credit card program.

Our dedication to the growing social
space, as well as creative content like
SimpliSavvy, helped name Bank of
Hawaii as one of the Top 50
Community Bank Leaders in social
media by the Independent Community
Bankers of America (ICBA) in 2014.
The ranking was based on fans/
followers, engagement, content and
frequency of posts. Bank of Hawaii
was the only Hawaii-based bank to be
named from 6,500 eligible banks
across the nation.

Branches, In-Store Branches
and Banking Centers
While increasing numbers of
customers choose to do their banking
online or via mobile devices, many
continue to appreciate the
opportunity to do their banking in
person. Our extensive branch network
is an important channel for deepening
customer relationships by helping
them find solutions to more complex
financial needs.

Our in-store branches, which offer
banking services seven days a week,
where customers shop, are extremely
popular. Some of our traditional
branches serve as banking centers,
where specialists in Mortgage Banking,
Investment Services, Personal
Banking and Business Banking are
available to provide these specific
financial services. These banking
centers are located in branches that
serve major metropolitan markets.

In 2014, the bank announced plans
to build a new banking center in
Kahului on Maui, which is expected to
be completed in the first half of this
year. Construction on the new
13,500-square-foot branch began last
year, and will be among the five
largest branches in our network. The
Kahului Banking Center will feature
state-of-the-art technology, including
biometric authentication to access
safe deposit boxes, adding a secured
layer of protection for customers. The
new banking center will also feature
envelope-free deposits at its ATMs.

B A N K O F H A W A I I 2 0 1 4 A N N U A L R E P O R T

Y E A R I N R E V I E W

A rendering of Bank of Hawaii’s Kahului
Banking Center on Maui, scheduled for
completion this year.

Mortgage Lending
For the second consecutive year,
Bank of Hawaii was named the No. 1
residential lending market share leader
in Hawaii. Our team executed the
highest dollar amount loaned in the
state and the greatest number of
loans. What this means is that the
bank helped thousands of families
pursue homeownership, home
improvement, purchase a new home or
improve their budgets by refinancing.

Purchasing or refinancing a home is
complicated. Bank of Hawaii does
more than find the right financing; we
do our best to ensure that the
mortgage experience is a good one.
Our loan officers offer regular
seminars for first-time homebuyers,
and educate people through the
prequalification process so that they
better understand their financing
before they start shopping. This
information is now available on our
boh.com website.

We also offer specialized financing
options, such as government loans,
home equity credit lines, construction
loans and customized programs for
Native Hawaiians.

COMPREHENSIVE WEALTH
MANAGEMENT SERVICES

At Bank of Hawaii we take a customer-
focused, relationship-based approach
to helping clients grow, manage and
protect their wealth. Our experienced
wealth advisors incorporate a process
we call “navigation” to help clients
achieve their financial goals. With a
philosophy based on trust, expertise
and client experience, we provide
clients a single point of contact to
help simplify their financial lives. We
strive to reduce uncertainty and
create a personalized financial
strategy designed to identify and
assess each customers’ unique
financial needs and requirements.

Through Bankoh Advisors, clients
receive the highest quality service
from our brokerage team of experts to
change jobs, prepare for a comfortable
retirement or leave a legacy. Our team
of Financial Advisors is dedicated to
simplifying the complexity in
navigating financial decisions that
affect generations, and offers
specialized products and services
through strategic partnerships with
well-established investment firms.

In addition, Bank of Hawaii’s trust
services bring a high level of
knowledge to clients to ensure that
hard-earned success is preserved,
protected and transferred in a way
that supports the people and
institutions our clients care about. Our
dedicated staff specializes in areas,
such as advanced planning,
personalized tax-managed investment
solutions, real estate management,
closely held businesses and tax
services. As the largest provider of
trust, investment and estate
administrative services in Hawaii and
with more than 100 years in the
business, Bank of Hawaii’s capable
trust and estate administration team
includes specialists who tailor
strategies to each special
circumstance, which may include
addressing probate, minimizing or
eliminating estate taxes or providing
owner succession planning for

businesses. With our clients’ priorities
as a guide, we create sophisticated
wealth transfer strategies that allow
them to maintain a current lifestyle
while providing for their loved ones
and giving back to the community.

As well as offering a full spectrum of
investment solutions, and with more
than $6 billion of assets under
management, Bank of Hawaii is also
the largest manager of Hawaii
municipal bonds in the state. With
over $1 billion in Hawaii municipal bond
assets under management, we are
able to leverage our market-leading
position to offer our clients access
and preferred pricing to Hawaii
municipal bonds that provide tax-
exempt income.

It takes tremendous skills to help our
customers pursue a lifetime of
financial success. Bank of Hawaii
invests in ongoing training and
certification for our wealth
management staff, who hold a wide
range of designations that are most
respected and recognized by the
financial industry. With certifications
in the fields of accounting, finance,
tax and trust, our wealth management
staff offer mastery of their field and
credibility to each of their clients.

Another benefit offered to our wealth
management clients is access to
exclusive events and seminars. In
addition to financial services, Bank of
Hawaii offers clients the opportunity
to stay connected, keep informed and
make confident financial decisions on
a broad range of topics, including
economic trends, investment markets,
retirement and real estate investing.

HELPING BUSINESSES–ALL
SIZES–SUCCEED

Whether our clients own small
businesses, international businesses
or large corporations, Bank of Hawaii
has the expertise, talent and
resources to meet their strategic
objectives and satisfy all of their
financial needs.

Mohalu II, located in Pearl City, Oahu,
and 801 South Street, which was the
first major workforce housing
development to come to the Kakaako
area. The bank assisted in financing
Phase I of 801 South Street in 2013,
and the 635-unit building is scheduled
for completion in 2015. Construction
began on Phase II in late 2014, which
will result in an additional 410 units.
To date, Hale Mohalu Family
Apartments has increased that
neighborhood’s affordable housing
inventory by 332 units.

As part of its commitment to support
the community, Bank of Hawaii was
proud to partner with Kina‘ole Capital
and Patagonia in 2014 to make solar
energy more accessible to Hawaii
residents. The bank contributed to
the $27 million Kina‘ole Hawaii Solar
Fund, which provides residents and
businesses low-cost solar energy,
enabling customers to save on their
electric bill by purchasing solar
energy directly from Kina‘ole Capital.
Bank of Hawaii is the only local lender
that has put together a broad-based
consumer fund of this scale for
residential solar energy.

Bank of Hawaii is a leader in the
captive insurance market, overseeing
nearly $1 billion in assets and deposits
of captives, statewide. We provide a
full range of banking and investment
products to over 80 diverse captive
clients, with more than 40 percent of
the market share, whose businesses
includes healthcare, energy, retail and
construction, across the U.S. and Asia.

Entrepreneurs and small businesses
play key roles in the continued
growth and recovery of Hawaii’s
economy. Bank of Hawaii has served
small businesses and their owners
since 1897, so we know how to
provide for their unique financial
needs. From providing loans to
growing a business, setting up
acceptance of credit and debit card
payments, managing employee payroll
services, or creating a retirement
plan for business owners and their
employees, we have the expertise to

help businesses succeed through
every stage of growth.

Bank of Hawaii was honored with the
2014 U.S. Small Business
Administration’s Lender of the Year
Award for Category 1, which includes
financial institutions with assets in
excess of $9 billion. The bank provided
55 loans totaling $5.7 million in Hawaii,
Guam and the Northern Mariana
Islands. We are proud to have received
this prestigious award for 10 out of
the past 12 years. Bank of Hawaii also
received the SBA Veteran Lender of
the Year Award for providing the most
loans to veterans.

International Banking
Our International Banking team serves
clients from Asian countries such as
China, Japan and Korea who have
financial interests in Hawaii and the
Pacific. In addition to banking
products and services that are
specially tailored to our international
clientele, we also play a key role in
connecting business leaders in Asia
with their counterparts in a broad
cross-section of Hawaii’s business
community.

In 2014, we were proud to host a
number of receptions for delegations
from China, including two groups from
the Tsinghua CEO Club seeking
opportunities to invest in Hawaii in
fields such as education, clean energy,
senior care and real estate
development. The 5,000 members of
this club are executives of medium- to
large-size companies in a wide range
of industries. We also hosted upper
management executives from the
GreenTree Inns Hotel Management
Group of Shanghai. GreenTree owns
and operates more than 1,700 inns
and hotels in China and the
continental U.S.

On the following pages, several
customers share their experiences in
working with our dedicated teams who
provide the highest quality financial
services customized to meet their needs.

B A N K O F H A W A I I 2 0 1 4 A N N U A L R E P O R T

801 South Street in Kakaako, scheduled
for completion in 2015.

Commercial/Corporate Banking
Our team of commercial and corporate
bankers continues to build and
support long-term relationships with
Hawaii’s mid-size companies and large
corporations. Our bankers are among
Hawaii’s most experienced financial
services teams, providing both simple
and complex financing and treasury
management solutions to fit every
situation, from maintaining day-to-day
operations to looking for funding to
pursue plans for growth.

Bank of Hawaii is committed to
supporting Hawaii’s commercial real
estate market, and is well equipped
to customize financing solutions for
a variety of property types. The bank
helps developers navigate the
complexity of funding programs and
tax credits while also strengthening
the Hawaii community by supporting
projects for low- or moderate-income
households as well as workforce
housing.

A strong construction market in
2014 led to a 38 percent increase in
commercial real estate lending activity
for the bank. Among the projects were
801 South Street, Hale Mohalu II, The
Collection and Kapolei Lofts. Bank of
Hawaii served as lead lender for Hale

P R O F I L E : C O M M E R C I A L B A N K I N G C L I E N T

The Watumull Family
Watumull Brothers, Watumull Properties Corp., American T-Shirt Company and Happy Shirts

Gulab Watumull: My father, Jhamandas Watumull,
started our business as an import shop on Fort Street in
downtown Honolulu in 1914. We’ve just celebrated 100
years of our family business in Hawaii, and Bank of
Hawaii has always been an important banking partner.

JD: We value the relationships we have at the bank for
their expertise. They can give you an answer quickly
and are very responsive to our needs. Bank of Hawaii is
a good sounding board and provides insight into the
broader business environment.

When I came to Hawaii in 1948, my intention was to
continue my education. Because U.S. laws at the time
barred foreign students in technical colleges, I joined the
family business. We grew the chain of retail stores and
became the largest purveyor of Hawaiian family wear in
the state. We were one of the original tenants at Ala
Moana Center.

It wasn’t until the 1980s that we started borrowing
money as part of a change in our business to focus on
real estate.

JD Watumull: My father’s investments in Hawaii real
estate gave the company a new direction. Today, we still
do our cash management through Bank of Hawaii in
addition to more complex services, such as lines of credit
to handle our real estate asset purchases. New mobile
deposit technology has been very helpful.

I’ve always heard that Hawaii is capital restrained, but
I’ve never experienced that. Because of our relationship
with Bank of Hawaii, it’s never been an issue for us. If
they can’t handle the facility, they will partner with other
lenders to help us get a deal done.

Gulab: I’ve built relationships with many of Bank
of Hawaii’s
leaders through the years. Now I’m
semi-retired, and it’s my son JD’s turn to handle the
banking affairs.

Our long-time banker is Wayne Hamano; he was my
first banker and has been our guide and advisor for years.
It’s reassuring to have such a long-time relationship, as
he understands our business goals and the family.

Carole Lau is our current banking officer, and she is very
knowledgeable and dedicated. With our fast-paced
business, if we need something done yesterday, she’ll get
it done yesterday!

The Watumull Family has supported education and
culture and the arts in Hawaii for decades. Another
reason we appreciate doing business with Bank of Hawaii
is that they share with us the same corporate value of
taking care of the community.

Gulab: Our relationship isn’t just about the business.
In 1959, I was approved for my very first home mortgage
with Bank of Hawaii. The terms were for an eight-year
loan for the entire amount. When that loan expired, they
simply had me come
loan.
And now my grandson, Jared, the fourth generation in
our business, got his first home mortgage through
Bank of Hawaii.

in and renew

the

We have a very good relationship with Bank of Hawaii,
and I’m glad they will continue to be there for the
business and for new generations of Watumulls.

Three generations of Watumulls at the Jhamandas Watumull Gallery of Indian Art at the Honolulu Museum of Art. Seated: Chairman
Gulab Watumull and his wife, Indru; standing, from left: President JD Watumull, Happy Shirts COO Vik Watumull, Watumull Properties Corp.
Vice President Jared Watumull and American T-Shirt Co. COO Jojo Watumull.

B A N K O F H A W A I I 2 0 1 4 A N N U A L R E P O R T

P R O F I L E : P E R S O N A L B A N K I N G A N D I N V E S T M E N T S E R V I C E S C L I E N T

Kyle Day and Frank Barros

Last year, I helped my father move out of the house he
had lived in for 50 years, into assisted living. We
remodeled the house and then sold it. When the bank
needed more papers to help with the sale, I was here in
Texas. So Summerset drove to the house, and under my
directions found the final documents she needed to
process the sale.

Dad made a nice profit from selling his house. When I
asked him what he wanted to do with the money, he
said, “I want to put everything with Bank of Hawaii; I
trust them.” And everything is there; all our investments
are in Hawaii. Kyle Kagimoto was wonderful in helping
to set up the investments.

From all these experiences in caring for my dad, I’ve
learned so much about the importance of financial
planning for when we get older. I can’t say enough good
things about Bank of Hawaii’s help in so many ways.

Kyle Day: I’d like to thank the bank for being there, for
helping me take care of my dad, Frank Barros. Our
personal banking services give me peace of mind as I
manage his care from 5,000 miles away in Texas.

My relationship began with Bank of Hawaii as a child,
so it just means home to me. My dad’s had a great
relationship with the bank for a lot longer. He worked for
the bank providing security in downtown Honolulu for
15 years. It was his life. Now Dad is 97 years old, and
visiting the Kahala Branch with his caretaker to cash a
check has become a regular outing for him. He knows
the people at the branch, and they are very nice to him.

If you have a good relationship with a personal banker, it
makes all the difference. With Bank of Hawaii, my dad
and I go directly to Summerset Lovett, who knows us
and understands our situation. She delivers very special
customer service. If I have any questions about Dad’s
account, I can just give her a call.

Just recently, my father got nervous about his checking
account. So Summerset picked him up, took him out to
lunch and talked things over to help alleviate his anxiety.
When someone goes to all that trouble to reassure him
and make him feel comfortable, that’s special.

Even from Texas, it’s convenient to do my banking at
Bank of Hawaii. I access my account online, so with the
time difference, I can do my banking even when the
bank is closed. I also use mobile banking so I can pay
Dad’s caregivers easily in Hawaii.

Kyle Day, with her father, Frank Barros, retired HPD police officer and retired Bank of Hawaii corporate security officer.

B A N K O F H A W A I I 2 0 1 4 A N N U A L R E P O R T

P R O F I L E : P R I V A T E B A N K I N G C L I E N T

Cully Judd and Carol Silva
The Solaray Corporation

Cully Judd: I’ve been a client of Bank of Hawaii for
over 50 years—I opened my first checking account there
before I went to college. We’ve always stayed with Bank
of Hawaii for all of our banking needs.

No one (including me) thought that my solar business
would become as large as it has. When I started, I had
no employees. Now it’s the oldest solar energy company
in the U.S. under the same management. The bank was
there for us through 40-plus years, even the lean years
when federal tax credits expired.

I look for speed and flexibility in banking. I like being
able to pick up the phone and make a funds transfer
without having to come in and meet with someone
at the bank. I appreciate the evolution of trust over
the years.

Carol Silva: What I look for in a banker is someone
who recognizes me as Cully’s proxy—I do almost all the
financial management. I need to take care of things
when Cully is out of town or unavailable. So developing
a relationship and working with the same banker is
important in understanding our business and our
banking needs.

Beth Fong was Cully’s mother’s trust officer. As Cully’s
mother got older, and more frail, Beth worked with our
daughters’ trust and other matters. If I needed to get
something resolved, I could call Beth for assistance. And
now Beth has been helping our private banker, Mike
Chisick, get to know us better.

Cully: You know who’s great too, is Verna Felipe.
She is sharp!

Carol: The backup people—that’s one of the things
about Bankoh that I love. All of the important people
that you deal with at the bank have super staff. They
know your name and provide great service, although
they never see you. It says wonderful things about the
way Bankoh trains its people.

Cully: With a lot of help from Bank of Hawaii, and two
other major banks, in 2014 we transferred ownership of
The Solaray Corporation to the employees. They are
now the owners. This was the biggest ESOP (employee
stock ownership plan) conversion in Hawaii for the year.
It was an extremely complex deal, and Bank of Hawaii
was an integral player.

Everybody wins with the ESOP. The company goes into
a tax-advantaged status, can pay down its loans and be
more competitive. The employees have the ownership
that they never would have.

Carol: Cully built the company to make Hawaii a better
place to live through solar energy. Now the business can
continue this vision in the hands of the people who
helped build it.

Cully: Now that the ESOP is finalized, I’m getting
some positive pressure from the bank’s investment
team to make financial plans for the future. I appreciate
their counsel.

We love our commercial banker Miki Ikeda. She’s very
responsive even when she’s out of town. Cully will call
her for information, and she’ll get an answer for him
right away.

Carol: That’s the thing about staying with the bank you
start with. As you grow, and grow older, you have a
valuable relationship. We were born and raised here.
Why would you bank anywhere else?

Among the solar panels at The Solaray Corporation warehouse: Cully Judd, The Solaray Corporation founder, with his life partner,
Carol Silva, The Solaray Corporation corporate treasurer.

B A N K O F H A W A I I 2 0 1 4 A N N U A L R E P O R T

P R O F I L E : C O M M U N I T Y B A N K I N G C L I E N T

Kimberly Koide Iwao and Regan Iwao

I also see it as a place for building important relationships
and connections. When I was growing up people knew
me as Tom Koide’s daughter, and everyone felt like
family. I felt very included in the Bank of Hawaii ‘ohana.

Kevin Sakamoto has been a tremendous help for me. He’s
a great networker, and he’s my go-to banker. Anytime I
need help with a loan or our mortgage, he’s got answers.

Jill Higa is a close family friend, and a personal mentor.
I’ve always seen her as a role model, especially for
community service and career aspirations. She’s made an
impact in decisions I’ve made in my life; she’s inspiring.

Regan: The bank is the manager of our 401(k), and we
trust them to manage it carefully while we watch it grow
for our family’s future.

Kim: I appreciate the convenience and customer service,
and all the relationships I’ve built at Bank of Hawaii
over the years.

Regan: We’ll be continuing the banking tradition with
Jacie, our little girl, when she gets a little older.

Kimberly Koide Iwao: I’ve been a Bank of Hawaii
customer for over 20 years—as long as I can remember.
I opened my first savings account at the supermarket
branch in Kahala Mall with my mom and dad. My dad,
Tom Koide, was a loyal Bank of Hawaii employee who
led the Hawaii Branch Division for many years, and
there really wasn’t a question about where to bank.

Regan Iwao: I’ve also been a client for years and years.
My parents had their mortgage at Bank of Hawaii, and
their accounts there. I generally defer to Kim to handle
most of the family banking, and as a good son-in-law I’m
glad to continue the Bank of Hawaii tradition.

Kim: For me it’s really important to bank here in the
Islands, to be able to talk with someone face-to-face.

I also appreciate Bank of Hawaii’s convenience and the
great customer service. I’ve probably used every single
banking service—supermarket branches, online, ATMs.
Even over the phone. I really appreciate the mobile
banking app. It offers me time savings, allowing me to do
my banking where and when it’s convenient for me. I can
even deposit checks by taking a photo with my phone—I
don’t need to go in to make a deposit. Regan and I are
both attorneys, plus we have a toddler, and our schedules
are very busy. So it’s really helpful and convenient to snap
a photo of a check and deposit it that way.

For me, Bank of Hawaii stands for excellence and
stability. It has been ranked the best bank—not only in
Hawaii, but nationally—for the past five years.

The Iwao family: Regan Iwao, partner at Goodsill, Anderson, Quinn & Stifel, with daughter Jacie, and wife Kimberly Koide Iwao,
associate corporate counsel and director of legal and regulatory affairs at ProService Hawaii, and their dogs, Precious and Sera.

B A N K O F H A W A I I 2 0 1 4 A N N U A L R E P O R T

S T R E N G T H E N I N G O U R C O M M U N I T I E S

Pulling Together to Strengthen Communities

Bank of Hawaii employees invest in the community by donating their time and connecting with those in need
across the state and the Pacific Islands.

It takes all of us working together

to create changes that benefit the

most vulnerable in the communities

we serve. Our commitment to

community service is at the heart

of our ‘ohana, and is reflected in our

ongoing partnerships with dedicated

not-for-profits. In total this year,

Bank of Hawaii, its foundation

and bank employees donated

approximately $3 million to more

than 400 community organizations.

Employees and retirees alone

contributed more than $740,000,

which includes funds raised through

the Live Kōkua Giving Campaign and

the Live Kōkua Community Walk.

Serving the Community
Our commitment to creating positive
change includes more than
fundraising. Each year, employees
and their families contribute time
and expertise to hundreds of
organizations and community
projects. This year, we contributed
more than 6,700 hours of personal
time to 109 community service
projects as part of the Live Kōkua
Volunteer Program. Whether it’s
cleaning a school, staffing a book
swap or pulling weeds to restore the
productivity of a wetland lo‘i (taro
field), our ‘ohana is always ready to
help out.

Investing in Future Generations
Our employees enjoy collaborating on
special projects, especially those
that give families and individuals
the tools to improve their lives
through financial education. In 2014,
employees across the company went
into nearby schools to reach 3,300
elementary students with lessons
about the importance of savings, and
2,000 teens with lessons about the
prudent use of credit and how to
protect their identity when using
social media.

Award-Winning Performance
Bank of Hawaii was one of nine
banks in the country, and the only
one in Hawaii, to be selected by the
Federal Deposit Insurance Corp. for
an innovative pilot youth savings
program for 400 10th-graders on
Oahu. The program reinforces
practical financial skills as part of the
school curriculum, and links it with
special youth savings accounts for
the students.

Our ongoing volunteerism, community
service and financial education was
recognized with two national awards
this year. The American Bankers
Association awarded the 2014 ABA
Community Commitment Award for
helping youth successfully transition
from foster care to adulthood with
our matched savings accounts. The
other award was the Corporate
Social Responsibility Leadership
Award, presented to the bank from
the Financial Services Roundtable for
the fourth year in a row.

Our employees on 10 islands across
the Pacific continue to remain deeply
involved in helping to improve the
communities where we live and work.

(Opposite page) 1: For the 8th annual Bank of Hawaii Live Kōkua Community Walk, employees selected the walk’s beneficiaries, and then
raised a total of $114,556, which was equally divided among the American Diabetes Association-Hawaii Chapter, Big Brothers Big Sisters
Hawaii, Helping Hands Hawaii and Make-A-Wish Hawaii. 2: In October, 153 bank employees joined Aiea High School students and faculty, and
members of the Hickam Non-Commissioned Officers Academy to spruce up the campus by painting, gardening, mopping and much more.
3: Danny Kim teaches the value of money and the importance of saving to two first-grade students at Lanakila Elementary. In April, our
“Teach Children to Save” initiative reached 3,300 students through the commitment of 240 bankers across the state, and on American
Samoa, Guam, Saipan and Palau. 4: Lisa Y. Goo, Momi Akimseu and Julia Ishado were just some of our Bankoh Blue Crew volunteers who
were knee-deep in a community workday that had them pulling invasive weeds, planting vegetables and digging irrigation channels. This
work supported Kākoʻ‘o ‘ʻŌiwi, a nonprofit restoring agricultural productivity to 405 acres within the wetlands of He‘ʻeia, Oahu.

B A N K O F H A W A I I 2 0 1 4 A N N U A L R E P O R T

S U P P O R T I N G O U R E M P L O Y E E S

Empowering Employees for Success

Bank of Hawaii is committed to providing resources to enhance our employees’ talents, knowledge
and experiences for a brighter future.

A company is only as strong as its

people. And we couldn’t be more proud

of ours. Bank of Hawaii employees are

some of the best and brightest in the

financial industry; they are the

foundation of our success as we

continue to move forward together.

We strive to attract, develop and

retain talented, dedicated and caring

people, people who can partner across

the company to do their utmost for

Bank of Hawaii, our customers and the

community. Because some of our best

employees come to the bank through

referrals from other employees, in

2014 we updated our talent referral

program to leverage additional social

media channels. Now, employees can

more easily share BOH job openings

with their networks of family, friends

and business associates and refer top

talent to be part of the Bankoh ‘ohana.

In addition to our competitive benefits,
which include a great retirement plan,
we continue to invest in employee
development, engagement and
well-being through our diverse “Grow.
Connect. Thrive.” employee programs.
These programs feature a robust
curriculum of professional and
leadership development classes,
plus health education and activities
to promote a healthy lifestyle. This
includes free gym access at our three
Oahu fitness centers (which offers a
free session with a personal trainer),
and subsidized fitness and wellness
classes. Deeply discounted boot camp,
yoga, Zumba, BoxFit and core
strengthening sessions are also
popular.

Employee fitness is also promoted
through special team activities such
as the Summer Slimdown, a 12-week
campaign that promotes healthy
eating and exercise habits. In its
second year, 225 participating
employees lost a total of 1,691 pounds
— that’s 85 big bags of rice!

Friendly competition is a fun tradition
that engages everyone at Bankoh.
This includes our annual Bank of
Hawaii Genius Bowl, a team contest
that tests competitors’ knowledge of
our many products and services for
consumers and businesses. Anticipa-
tion builds during the eight weeks of
tournament rounds, and the final four
teams have big turnouts of their
fellow employees cheering them on
during the live playoffs. This was the
third year of the Bowl, which included
637 competitors — the largest
number ever.

In 2014, Bank of Hawaii was
recognized as one of the “Best Places
to Work.” In addition to ranking among
Hawaii’s top 10 large companies who
received this distinction, Bank of
Hawaii was proud to also be ranked
No. 1 in the “Healthiest Companies”
and No. 3 in the “Most Family-Friendly”
categories.

Because we understand the
importance of investing for the
future, Bank of Hawaii Foundation
(BOHF) established a new program
this year. The BOHF Scholarship was
established to help bridge the gap of
higher education costs for college-
bound children and grandchildren of
Bank of Hawaii employees. The
scholarship is administered by the
Hawaii Community Foundation, and in
July, the first 26 recipients were
announced for this inaugural year.

Recognizing and rewarding
exceptional individuals and teams is
an important part of the Bankoh
culture, and through our Step Up To
Excellence program, employees are
invited to highlight exceptional
contributions of their colleagues.
Nominations are submitted each
quarter, and awardees are celebrated
by their coworkers and presented
with valuable options and the
opportunity to arrange paid time off
from work. More than 80 awards
have been presented since the
program started in 2003.

Our dedicated employees are the
key to our success. By placing an
emphasis on our employees’
professional development, personal
growth and general well-being,
they are better equiped to provide
unparalleled service to our
customers for their journey ahead.

1: The Bank of Hawaii Foundation’s inaugural scholarship recipients included 26 children of bank employees. Seated, from left: Natalie Hajinelian,
Kelsie Park, Mary Elizabeth Pascual, Melanie Tomita-Cadavona, Cassie Dizon, Eun-hae Whang, Jennifer Takahashi, Kathy Takahashi, Tori
Teramae and Keri Teramae. Standing, from left: Amy Yagi, Kylie Nishino, Micah Miyasato, Nicholas Young, William Young, Brittany Wheatman,
Dylan Matsuda, Deja Ceruti, Ken Takahashi, Emma Ayau, Chanelle Maldonado and Tyler Nishino. Not pictured: Lauren Furushima, Daphne
Pe‘a, Nicole Wheatman and Abcde Zoller. 2: Winners of the 3rd annual Bank of Hawaii Genius Bowl in 2014 were members of the Pearlridge
Banking Center. From left: Susan Marciel, Lori Lopez, Natalie Phillips and Mina Escano. 3: In September, Bank of Hawaii senior leadership
recognized winners of the 2nd annual Summer Slimdown Challenge at an awards luncheon. Seated, from left: Sr. Executive Vice President
and Mortgage Banking Manager Jim Polk, EVP and Director of Human Resources Jean Hamakawa, Individual Grand Prize Winner Kevin Floyd,
Chairman, President and CEO Peter Ho and Vice Chair Mark Rossi. Standing, from left: EVP and Direct Lending Manager Ed Kim; Team Grand
Prize Winners Phillip Mendel, Gregg Tokunaga, Nanako McShane, Hiroko Stroble, Steven Yeung; and SVP and Dealer Indirect Lending Manager
James Moniz. Missing: Clarissa Kerr. 4: In April 2014, eight employees were honored as the 2013 Bank of Hawaii Step Up To Excellence
awardees for demonstrating the ideals of Bank of Hawaii’s vision and core values. Seated, from left: Kuka Faleafine of Mapunapuna Branch,
Ashley Wilson of Commercial Banking, Joanne Lopes of Commercial Banking and Lyn Sakamoto of Trust Services Group Administration.
Standing, from left: Frank Scarpinito of Main Banking Center, Roger Toledo of Credit Portfolio Reporting and Analysis, Bob Gilfoy of
Merchant Services and Jason Mukaida of Private Wealth Administrative. 5: Bank of Hawaii’s Summer Slam is one of the bank’s annual
employee engagement traditions. In July, employees enjoyed free lunch from local food trucks at our three Oahu locations, and a basketball
final four free-throw competition in downtown Honolulu. Steven Nakahara takes a shot, with his “Moneyballers” teammates Jason L. Smith
and Justin Wong looking on.

B A N K O F H A W A I I 2 0 1 4 A N N U A L R E P O R T

2 0 1 4 F I N A N C I A L R E P O R T

Consolidated Statements of Income

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

2014

2013

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
Short-Term Borrowings
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, Net
Annuity and Insurance
Bank-Owned Life Insurance
Other
Total Noninterest Income

Noninterest Expense

Salaries and Benefits
Net Occupancy
Net Equipment
Data Processing
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

267,407

253,276

42,475
105,860
9
673
1,209
417,633

9,534
25,905
13
–
2,525
37,977
379,656
(4,864)
384,520

47,798
7,571
35,669
53,401
8,063
8,065
6,639
12,811
180,017

183,028
37,296
18,479
14,979
9,794
7,936
55,387
326,899
237,638
74,596

53,570
90,062
10
415
1,172
398,505

10,143
26,837
44
2
2,572
39,598
358,907
–
358,907

47,932
19,186
37,124
50,469
–
9,190
5,892
16,430
186,223

184,211
38,745
18,366
13,840
9,405
7,765
58,637
330,969
214,161
63,659

$
$
$

163,042

3.71
3.69
1.80
43,899,208
44,125,456

$
$
$

150,502

3.39
3.38
1.80
44,380,948
44,572,725

Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 for the Consolidated Financial Statements,
including Report of Independent Registered Public Accounting Firm, thereon.

Consolidated Statements of Condition

Bank of Hawaii Corporation and Subsidiaries (dollars in thousands)

A S O F D E C E M B E R 3 1

2014

2013

Assets
Interest-Bearing Deposits in Other Banks
Funds Sold
Investment Securities

Available-for-Sale
Held-to-Maturity (Fair Value of $4,504,495 and $4,697,587)

Loans Held for Sale
Loans and Leases

Allowance for Loan and Lease Losses
Net Loans and Leases

Total Earning Assets
Cash and Due from Banks
Premises and Equipment, Net
Accrued Interest Receivable
Foreclosed Real Estate
Mortgage Servicing Rights
Goodwill
Bank-Owned Life Insurance
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
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, 2014 - 57,634,755 / 43,724,208;
and December 31, 2013 - 57,480,846 / 44,490,385)

Capital Surplus
Accumulated Other Comprehensive Loss
Retained Earnings
Treasury Stock, at Cost (Shares: December 31, 2014 - 13,910,547;

and December 31, 2013 - 12,990,461)

Total Shareholders’ Equity
Total Liabilities and Shareholders’ Equity

2,873
360,577

3,617
271,414

2,289,190
4,466,679
5,136
6,897,589
(108,688)
6,788,901
13,913,356
172,126
109,854
44,654
2,311
24,695
31,517
262,807
225,888
$ 14,787,208

3,832,943
2,559,570
4,806,575
1,434,001
12,633,089
8,459
688,601
173,912
55,477
5,148
27,777
139,659
13,732,122

574
531,932
(26,686)
1,234,801

(685,535)
1,055,086
$ 14,787,208

2,243,697
4,744,519
6,435
6,095,387
(115,454)
5,979,933
13,249,615
188,715
108,636
43,930
3,205
28,123
31,517
223,246
207,293
$ 14,084,280

3,681,128
2,355,608
4,560,150
1,317,770
11,914,656
9,982
770,049
174,706
34,965
4,871
34,907
128,168
13,072,304

572
522,505
(31,823)
1,151,754

(631,032)
1,011,976
$ 14,084,280

B A N K O F H A W A I I 2 0 1 4 A N N U A L R E P O R T

2 0 1 4 R E L A T I V E P R I C E P E R F O R M A N C E

$120

$115

$110

$105

$100

$95

$90

$85

MARCH 31

JUNE 30

SEPT 30

BOH

S&P 500

KBW REGIONAL BANK 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

‘86

‘88

‘90

‘92

‘94

‘96

‘98

‘00

‘02

‘04

‘06

‘08

‘10

‘12

‘14

Historical Dividends Adjusted for Stock Splits

$2.00

$1.75

$1.50

$1.25

$1.00

$0.75

$0.50

$0.25

$0.00

B A N K O F H A W A I I L O C A T I O N S

Commonwealth
of the Northern
Mariana Islands/Saipan

Kauai

Oahu

Niihau

Lanai

Molokai

Maui

Kahoolawe

Hawaii

Guam

Republic of Palau

State of Hawaii

American Samoa

Map not shown to scale

B A N K O F H A W A I I 2 0 1 4 A N N U A L R E P O R T

Managing Committee

Bank of Hawaii Corporation / Bank of Hawaii (As of December 31, 2014)

From left: Mark A. Rossi,

Mary E. Sellers, Peter S. Ho

and Kent T. Lucien

From left: James C. Polk,

Donna A. Tanoue and

Derek J. Norris

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

Peter S. Ho
Chairman, President and
Chief Executive Officer

Peter M. Biggs
Vice Chairman and Chief Retail Officer

Sharon M. Crofts
Vice Chairman
Operations, Technology and Facilities

Wayne Y. Hamano
Vice Chairman and
Chief Commercial Officer

From left: Wayne Y. Hamano,

Peter M. Biggs, Jill F.S. Higa

and Vincent E. Barfield

From left: Dean Y. Shigemura,

Sharon M. Crofts and

Alton T. Kuioka

Mary E. Sellers
Vice Chairman and Chief Risk Officer

Derek J. Norris
Vice Chairman
Residential and Consumer Lending Group
Manager

Donna A. Tanoue
Vice Chairman
Client and Community Relations

Vincent E. Barfield
Senior Executive Vice President
Trust Services Group

Jill F. S. Higa
Senior Executive Vice President
Private Banking Group

James C. Polk
Senior Executive Vice President
Mortgage Banking

Dean Y. Shigemura
Senior Executive Vice President
and Controller

B A N K O F H A W A I I 2 0 1 4 A N N U A L R E P O R T

Board of Directors

Bank of Hawaii Corporation / Bank of Hawaii (As of December 31, 2014)

Kent T. Lucien*
Vice Chairman and
Chief Financial Officer
Bank of Hawaii
Corporation and
Bank of Hawaii

Victor K. Nichols*
Former CEO of
North America and
President of Global
Consumer Services
Experian

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

Raymond P. Vara*
President and
Chief Executive Officer
Hawai‘i Pacific Health

Robert W. Wo*
Owner and Director
C.S. Wo & Sons, Ltd.

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

*Bank of Hawaii Corporation Board of Directors

B A N K O F H A W A I I L O C A T I O N S

Facts: Hawaii, Guam, Saipan, Palau and Amercian Samoa

HAWAII
Hawaii business establishments in 2013: 98 percent have fewer than
100 employees, 95 percent have fewer than 50 employees, and 56.5 percent have
fewer than five employees.1

Hawaii gross domestic product in 2013: $75.2 billion (in current dollars)2
- Government: 22.4% (federal civilian and military, and state and local)
- Real estate, Rental and Leasing: 19.8%
- Accommodation and Food services: 8.0%
- Retail trade: 6.8%
- Health care and Social assistance: 6.3%
- Construction: 5.5%
- Transportation and Warehousing: 4.4%
- Professional and Technical services: 4.2%
- Finance and insurance: 3.0%

Tourism’s direct and indirect impact on Hawaii gross domestic product
(in current dollars) in 2013: 16.7% 3

State of Hawaii resident population as of July 1, 2014: 1,419,561 4

GUAM
- U.S. Territory
- Capital: Hagatna (Agana)
- Resident population: July 2014 estimate 161,001 5
- Main industries: U.S. military and tourism.

AMERICAN SAMOA
- U.S. Territory
- Capital: Pago Pago
- Resident population: July 2014 estimate 54,517 5
- Main industries: tuna canneries and handicrafts.

COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS
- Commonwealth in political union with the U.S.
- Capital: Saipan
- Resident population: July 2014 estimate 51,483 5
- Main industries: tourism, banking and construction.

PALAU
- Constitutional government in free association with the U.S.
- Capital: Melekeok
- Resident population: July 2014 estimate 21,186 5
- Main industries: tourism, craft items and construction.

Bank of Hawaii Branches and ATMs
(As of December 31, 2014)

Branches
and In-Store
Branches

State of Hawaii

Island of Oahu
Island of Hawaii
Island of Maui
Island of Kauai
Island of Lanai
Island of Molokai

West Pacific
CNMI/Saipan
Guam
Palau

American Samoa

67
38
11
12
4
1
1

6
2
3
1

ATMs

410
294
48
40
26
1
1

42
6
33
3

Grand Total

459

1 Table 12.29, Hawaii DBEDT State of Hawaii Data
Book 2013, pg 93, Employment and Payrolls in
Hawaii: https://www.hiwi.org/admin/gsipub/
htmlarea/uploads/LFR_QCEW_ES2013.pdf

2 Table 13.05, Hawaii DBEDT State of Hawaii Data

Book 2013, http://files.hawaii.gov/dbedt/
economic/databook/2013-individual/13/130513.xls
from the U.S. Bureau of Economic Analysis,
Gross Domestic Product by Industry 1963 to
2013: www.bea.gov/regional/index.htm

3 Calculation based on Tables 13.05 and 7.32,

Hawaii DBEDT State of Hawaii Data Book 2013,
http://files.hawaii.gov/dbedt/economic/
databook/2013-individual/07/073213.xls
and http://files.hawaii.gov/dbedt/economic/
databook/2013-individual/13/130513.xls

4 Table 1.04, Hawaii DBEDT State of Hawaii Data

Book 2014, http://files.hawaii.gov/dbedt/census/
popestimate/2014_state_pop_hi/
NST-EST2014-01.xls

5 Central Intelligence Agency (CIA),

The World Factbook (2014).

B A N K O F H A W A I I 2 0 1 4 A N N U A L R E P O R T

S H A R E H O L D E R I N F O R M A T 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 24, 2015 at 8:30 a.m. 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
& 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.

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 a.m. and
5:00 p.m. 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

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.

B A N K O F H A W A I I 2 0 1 4 A N N U A L R E P O R T

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 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 failure in or breach of

our operational systems, information systems or infrastructure, or those of our

third party vendors and other service providers; 14) 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; 15) changes to the amount and timing of proposed common stock

repurchases; and 16) natural disasters, public unrest or 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, 2014, 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 the

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.

BANK OF HAWAII CORPORATION

P.O. Box 2900, Honolulu, Hawaii 96846