Bank of Hawaii Annual Report 2015

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FY2015 Annual Report · Bank of Hawaii

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2015 ANNUAL REPORT

New Tomorrows

Bring in g Dre ams to Life

Contents

Chairman’s Message

2015 Financial Summary

Year in Review

Rooted in Our Community

10 Nurturing Our Greatest Assets

Client Profiles

2015 Financial Report

23 Map of Locations

24 Managing Committee and Board of Directors

Bank of Hawaii Locations

Shareholder Information

New Tomorrows—
Bringing Dreams to Life

The Bank of Hawaii canoe was

commissioned and built by master

canoe builder Nakoa Prejean in 2015.

Named Ulu o ka lā, meaning “growing

sun,” the koa canoe pays tribute to

the bank’s 118-year history while

symbolizing the bank’s journey of

meeting the evolving needs of its

customers.

© 2016, 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 and Bankoh Advisors are trademarks of Bank of Hawaii. iPhone® is a registered trademark, and Apple Pay™ is a trademark
of Apple Inc. Android™ is a trademark of Google Inc. Visa and Visa Signature® are registered trademarks 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,
2015 brought yet another year of steady
progress and solid performance. All
sectors of our business showed growth.
We are well situated for 2016. Our
commitment to building shareholder
value remains steadfast. We do this by
staying true to a strategic approach that
leverages our unique opportunities in
our Island economies, where we are
market leaders with exceptional brand
strength and awareness.

We remain well capitalized. Asset
quality remained stable in 2015, and we
continue to maintain our signature focus
on sound risk and capital management
with an eye on controlling expenses.

Diluted earnings per share for the full
year of 2015 were $3.70, up slightly from
diluted earnings per share of $3.69 in
2014. Our balance sheet continued to
strengthen with solid growth in total
loans and leases, up 14.2 percent from
$6.9 billion in 2014 to $7.9 billion in 2015.
Commercial loans were up 11.5 percent
from $2.8 billion in 2014 to $3.2 billion in
2015. Consumer loans increased 16.1
percent to $4.7 billion from $4.1 billion
year over year. Deposit growth remained
strong. Total deposits increased to $13.9
billion, up from total deposits of $12.6
billion at the end of December 2014.

We continued with our share repurchase
plan, returning significant capital to
shareholders while still managing to
grow capital. Our dividend continued at
$1.80 per share. Since the start of the
share repurchase program in July 2001
through the end of 2015, we have
repurchased 52.8 million shares and
returned nearly $2.0 billion to
shareholders, at an average cost of
$37.35 per share.

Our consistent performance is truly due
to our 2,200 employees and hundreds of
thousands of customers. We were once

again rated as Hawaii’s Best Bank by the
Honolulu Star-Advertiser and Honolulu
magazine, and continue to be ranked in
the top 10 performing large U.S. banks,
according to Forbes magazine. Bank of
Hawaii’s deposits are rated Aa2 by
Moody’s Investor Services, one of the
highest ratings nationally and globally.
(as of Dec. 10, 2015)

Hawaii’s Economy

Hawaii’s economy sustained its
momentum from the prior year, setting
another record-breaking year for
tourism in both number of visitors and
dollars spent per visitor. This is the
fourth consecutive year of increases.
Tourism, construction and real estate
were in full stride as the state hit a low
unemployment rate of 3.2 percent at the
end of December, down from 4.1 percent
in January. The median housing price
was $700,000 in Honolulu County in
2015. Housing inventory remains tight.
Honolulu’s $6.6 billion rail project,
estimated to be complete in 2019, is the
state’s largest public works project in
state history.

We anticipate the positive momentum
to continue through 2016. We remain,
however, watchful of a number of
potentially challenging developments in
the global economic and geopolitical
environments. Hawaii’s Department of
Business, Economic Development and
Tourism (DBEDT) projects Hawaii’s
economy to follow a stable growth path
over the next several years. Construction
is strong with private building permits
up roughly 24.2 percent during the first
11 months of 2015 over the same time
period in 2014. Perhaps more impressive
was the increase in value of residential
permits, which jumped 85.5 percent,
followed by commercial and industrial
construction permits which was up
41.0 percent during the first 11 months
of 2015.

Changing Landscape

As the world continues to change, so, too,
is banking. Digital developments make
our world smaller, and customers expect
more options, quicker than ever, and in a
more customized manner than ever.

Bank of Hawaii is well-positioned to
meet the challenges and opportunities
created by emerging trends. While
focused on the future we continue to be
grounded through the legacy of our
118-year history.

Our Strategy

We remain committed to a longstanding
core strategy of creating organic growth
from within the markets we know best,
through delivering exceptional service
and solutions to our customers.

We have existed now in three different
centuries, and our continued success lies
in our ability to keep evolving to an
ever-changing landscape. I am confident
in our ability to:
• Continue to improve and build upon
our role as a trusted advisor and
enabler for people’s financial needs by
helping to make their lives more
financially secure and convenient.
• Ensure what we do is clearly within

the jet stream of how people do things
today. It’s important that what we do
aligns with how people want to do
their banking.

We do this by transitioning from a
technology-capable to a technology-
advantaged organization. Actively using
information will help us provide better
products, services and solutions for our
customers, as well as achieve greater
operational efficiency.

This will affect everything from our
branch designs to more in-depth
integration of new technology. Over
the next five years, plans call for
approximately 30 branch projects.

B A N K O F H A W A I I 2 0 1 5 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

Some will be completely new branches,
some will be renovations to existing
branches and some will be replacement
branches. We are transforming many of
our branches from more traditional,
largely transactional spaces to a modern
system that handles transactions, but is
also much more customer facing and
conducive to serving the various needs of
our customers and communities in a
variety of ways. We believe this will
generate substantial shareholder return.
Perhaps as importantly, though, we
believe this work will ensure our
vibrancy for another 118 years of
successful history.

Our Community

As Hawaii’s largest independent
financial institution, we take our
obligation to community involvement
seriously. We are a reflection of the
communities we serve, and healthy
communities mean a healthy Bank of
Hawaii. In 2015, our employee volunteers,
called the Bankoh Blue Crew, stepped up
with 11,225 hours of their time to lend a
hand at 124 community events. In
addition, many of our employees lend
their expertise to a variety of nonprofit
organizations by serving on boards of
directors. In recognition of their
dedicated efforts, Bank of Hawaii
received the Financial Services
Roundtable’s “Corporate Social
Responsibility Leadership Award” for
the fifth consecutive year.

The generosity of our employees is driven
by the inspirational work of Hawaii’s
nonprofits. We are privileged to partner
with so many outstanding organizations
striving to make a positive difference in
our Islands.

In 2015, Bank of Hawaii was again
honored with the U.S. Small Business
Administration’s Hawaii Lender of the
Year Award for Category 1, which
includes financial institutions with
assets in excess of $9 billion. Bank of
Hawaii provided 50 loans totaling $11
million in Hawaii, Guam and the Mariana
Islands. This is the 11th year out of the
past 13 years that Bank of Hawaii has
earned this recognition.

Our Employees

Our employees are key to our success.
We assign tremendous importance to
our ability to attract and retain top
talent. While this can become
increasingly challenging in such a low
unemployment rate environment, we
nonetheless are committed to the effort.
We do this through ongoing training at
all levels throughout our organization,
including a variety of employee
engagement activities, leadership
training and programs.

We were once again proud to be named
among Hawaii’s “Best Places to Work”
as ranked by Hawaii Business magazine,
and the No. 3 “Most Family Friendly”
large company in the state.

We are in our second year of our Bank
of Hawaii Foundation Scholarship.
Thirty-two deserving children of bank
employees shared $112,000 in scholar-
ships to colleges across the country.

Our Customers

Bank of Hawaii is proud to say we have
a banking relationship with more than
50 percent of Hawaii households.

Meeting customers’ expectations can be
a challenge. The bar is set high for those
expectations. Not by other banks, but by
other industries. If one thing is clear, it is
people do not want their banking to be
complicated. They want it simple and
convenient. Our goal is to enable people
to bank however they want, whenever
they want, wherever they want.

Figuring out how to distribute our
products through more than just our
teller lines is an important endeavor. Our
goal is to enable our digital devices to do
everything that can be done with the
physical wallet. Our mobile banking
business has grown dramatically to
5 percent of consumer deposits today
from none two years ago.

We are known for conducting quality
financial seminars open to the public at
no charge. We intend to increase their
frequency and concentrate on helpful
seminar topics, such as retirement,
long-term care insurance, estate

B A N K O F H A W A I I 2 0 1 5 A N N U A L R E P O R T

planning and financing college. It’s a
great way to utilize our branches, and
convenient for the community to join us
at locations all across the state.

Aloha and Mahalo to Directors
Don Takaki and Marty Stein

I’d like to thank two of our longstanding
directors who will be retiring from our
board in 2016. Donald Takaki served on
the BOH board from April 1990 and on
the BOHC board from April 1997. During
his tenure, Don has served on the
Fiduciary & Investment Management
Committee (FIMC) and Benefit Plans
Committee. Martin Stein served on the
BOH board from May 1999 and on the
BOHC board from April 1999. Marty has
served on our HR & Compensation
Committee and currently serves on the
Audit & Risk Committee. Their
contributions, voices and perspectives
have been valued and appreciated and
will certainly be missed. We wish them
both a fond aloha.

I’d also like to thank and acknowledge
our entire board of directors for its
support, involvement and guidance and
you, our shareholders, for your continued
confidence in Bank of Hawaii.

I Mua (Hawaiian for “moving
forward”)

Early this year, we launched a new ad
campaign entitled, Welcome to
Tomorrow. Key to the theme is the notion
of tomorrow. As we see it, banking is
really all about helping people receive,
plan for and adjust to tomorrow.
Whether it’s helping our customers
utilize convenient technology to create a
little more time for tomorrow or helping
our customers plan and prepare for a
fuller tomorrow, we believe firmly that
focusing on tomorrow will yield
handsome results for our key stake-
holders—our community, our customers,
our shareholders and our employees.

Aloha,

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

2 0 1 5 F I N A N C I A L S U M M A R Y

Bank of Hawaii Corporation and Subsidiaries (dollars in thousands, except per share amounts)

FOR THE YEAR ENDED DECEMBER 31

2015

2014

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 Margin 1

Efficiency Ratio 2

Market Price Per Share of Common Stock:

Closing

High

Low

160,704

163,042

3.72

3.70

1.80

1.06 %

14.82 %

2.81 %

59.99 %

62.90

70.07

53.90

3.71

3.69

1.80

1.14 %

15.50 %

2.85 %

58.41 %

59.31

61.73

52.70

AS OF DECEMBER 31
Statements of Condition Highlights and Performance Ratios
Loans and Leases

7,878,985

6,897,589

Total Assets

Total Deposits

Other Debt

Total Shareholders’ Equity

Book Value Per Common Share

Allowance to Loans and Leases Outstanding

Full-Time Equivalent Employees

Branches

FOR THE QUARTER ENDED DECEMBER 31
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 Margin 1

Efficiency Ratio 2

15,455,016

13,251,103

245,786

1,116,260

25.79

1.31 %

2,164

42,832

1.00

0.99

1.11 %

15.41 %

2.85 %

58.55 %

14,787,208

12,633,089

173,912

1,055,086

24.13

1.58 %

2,161

41,191

0.95

0.94

1.12 %

15.39 %

2.84 %

57.03 %

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 5 A N N U A L R E P O R T

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

Personal Service

And Performance that Matters

Creating a bright future for our shareholders, customers,

employees and community is what Bank of Hawaii is all about.

While technology is bringing global changes to our
lives, Bank of Hawaii continues to adhere to its
timeless values of excellence and innovation. We are
proud to be leaders in adopting timesaving technology
to improve service for our customers, while
maintaining our focus on expertise and providing
a personal touch.

Our bankers have been trusted experts for generations
of families and businesses across the Pacific. One
measure of our success is the local and national
recognition that we continue to receive. Here are some
received for 2015:

• Corporate Social Responsibility Leadership Award,

fifth consecutive year by Financial Services
Roundtable

• Hawaii SBA Lender of the Year — Category 1

• Best Bank, by Honolulu Star-Advertiser readers

• Best Bank, by Honolulu magazine readers

EMPOWERING CUSTOMERS WITH
ENHANCED SERVICE

We know that time is valuable to our customers.
To help them do their banking whenever and
wherever works best for them, Bank of Hawaii
continually assesses products and services across
multiple channels to be sure that we are bringing our
customers what they need. We utilize the latest
technology and tools for secure online and mobile

banking options, offer easy deposit ATMs, extended
hours at supermarket branches and specialized
services at our banking centers. What counts isn’t
simply the number of our ATMs or branches, but how
all of our channels work together for our customers’
convenience.

Online and Mobile Banking

In August 2015, customers in Guam, Saipan and Palau
gained access to our free mobile deposit service. Using
the Bank of Hawaii app for iPhone, iPad or Android
devices, our West Pacific region customers can now
deposit checks by simply snapping a photo of them.
The usage of Bank of Hawaii’s mobile deposit
capabilities has increased steadily since its
introduction in August 2013. In addition, the next-day
availability of funds deposited through mobile
deposits was increased to $1,000.

In March 2015, our online and mobile banking services
were enhanced to allow customers access to 18 months
or 540 days of their line-of-credit and loan activities
via their transaction history.

Banking online remains one of the most popular
methods for our customers. In 2015, we boosted online
service with a new feature called “Click to Call.” With
the click of a button on our website, customers are
connected to a representative in our 24-hour Call
Center who can answer questions and help them apply
for products or services over the phone.

B A N K O F H A W A I I 2 0 1 5 A N N U A L R E P O R T

Tori Lafayette at one of

the first easy deposit

ATMs installed at Bank

of Hawaii’s Main

Banking Center in

downtown Honolulu.

Credit and Debit Cards

ATMs

Following our 2014 rollout of Apple Pay
with our Hawaiian Airlines Bank of
Hawaii World Elite MasterCard, we
launched Apple Pay to all debit card
consumers with accounts in the state of
Hawaii in March 2015. A safe and secure
way to pay for in-store purchases at more
than 700,000 locations nationwide,
payment information is kept protected
while users have the convenience of
making purchases with a simple touch.

In April, Bank of Hawaii became the first
and only local bank to introduce a new,
low-fee alternative to traditional
checking accounts. EASE by Bank of
Hawaii offers Hawaii customers no
overdraft fees, no paper checks,
a Visa debit card, access to more than
400 ATMs plus online and mobile
banking.

Bank of Hawaii added another layer of
security to customer transactions by
embedding EMV chip technology in all
Bank of Hawaii debit cards starting in
August 2015, replacing existing cards
with new ones containing an encrypted
microchip. Chip technology is among the
most fraud-resistant payment methods
available to date.

In July 2015, we began rolling out our easy
deposit ATMs across the state of Hawaii.
By the end of the year, we were
approximately 60 percent complete with
installation at most branches and
a handful of offsite locations. These
envelope- and deposit slip-free ATMs
have the ability to scan up to 30 checks or
bills, giving more customers the option to
make deposits at their convenience. In
2016, we plan to have our easy deposit
ATMs installed in branches systemwide.

Branches, In-Store Branches and
Banking Centers

While our customers’ use of online and
mobile technology for banking steadily
increases, our extensive branch network
continues to provide vital assistance with
more complex financial services. Bank of
Hawaii strives to make banking simpler
by maintaining the right balance between
new technology and personal banking
services.

In April 2015, we opened our newest
banking center in Kahului, our first on
Maui. The 13,500-square-foot facility puts
all of our key operations under one roof,
where experts in mortgage banking,
investment services, personal banking
and commercial banking are on hand to
provide these specialized financial
services. This new banking center utilizes
the latest technology, such as self-service
access to safe deposit boxes and easy
deposit ATMs to provide added
convenience for our customers. The
state-of-the-art facility also takes
advantage of eco-friendly innovations,

including low-energy HVAC units,
water-efficient plumbing, LED lighting,
a pervious concrete parking lot that
reduces storm water runoff and pollution,
and electric vehicle charging stations.

Bank of Hawaii also opened a new
in-store branch on Kauai at the Lihue
Safeway in September, our first
seven-day-a-week branch on the island.
On Oahu, our historic Haleiwa Branch
was renovated, and we leased land on
East Manoa Road to develop a new
Manoa Valley branch in 2016.

Mortgage, Consumer and Dealer
Indirect Lending

For the third year in a row, Bank of
Hawaii was named the No. 1 lender in the
state for number of residential loans
recorded and total dollars loaned. Our
personalized service and care enabled
thousands of first-time homebuyers to
realize their dreams, while thousands
more homeowners improved their
property and budgets through
refinancing. One of our strengths is our
ability to integrate our expertise across
our many lines of business, and we
continue to develop specialized lending
products and services for investors.

Bank of Hawaii’s extensive branch
network makes us the most convenient
mortgage lender in the state. To
maximize our convenience for customers,
we increased our staff and invested in
new technology that accelerates the
mortgage process with electronic
signatures. This investment in expertise
and technology helped enhance our
lending execution, especially for large

Kahului Banking Center

opened for business in

April 2015.

Our business is built on

relationships and trust.

The more we can help our

clients define and achieve

their financial objectives,

the more trust they will place

in us to continue to meet

their investment goals and

strengthen the relationship.

Phase II of 801

South St. in

Kakaako is

scheduled for

completion in 2017.

developments that have a high volume
of applications for home loans at the
same time.

Working in partnership with developers
Downtown Affordable and Tradewind
Capital, Bank of Hawaii was the lead
financer for 801 South St., the largest
workforce housing project in urban
Honolulu. We continue to help families
reach their dreams of homeownership by
providing mortgages, many to first-time
homeowners, of Phase I, as well as
assisting with financing for future
residents of Phase II, which is scheduled
for completion in 2017. The project
brought a total of 1,045 units to Kakaako
targeted toward workforce housing.

Our Consumer Lending Department
offers clients the flexibility to meet their
current and future aspirations through
our Bankoh Home Equity Line. Bank of
Hawaii remains the number one home
equity lender in Hawaii for 2015 by
helping our clients achieve their dreams,
whether it is for higher education for
their children, tackling home
improvement projects or saving money
with debt consolidation options.

The bank’s Dealer Indirect Lending
Department provides auto loan and lease
product lines with a commitment to
personal service, building dealer
relationships and flexible financing
programs. We expanded our auto loan
portfolio by more than $55 million (over

16 percent) and grew our leasing portfolio
by over 50 percent, from $21 million in
2014 to more than $33 million in 2015.

PRIVATE BANKING

For more than five generations,
customers have relied on the sound
advice from Bank of Hawaii to help
navigate their own financial waters and
take thoughtful action to turn dreams
into reality. Bank of Hawaii’s Private
Banking provides an individualized
approach to each client’s unique situation
and life stage. Our priority is to make
customers’ finances worry-free, so they
may live the life of their dreams. We do
this by providing a personal relationship
manager, a single contact who
understands our clients and cares for
everything from basic banking services
to customized lending to bringing in
experts in investments, financial, estate
and tax planning, charitable giving and
trust services. For busy professionals,
Private Banking combines the expertise
of business and personal banking with
the convenience and simplicity of one
relationship manager.

Bankoh Advisors

Our business is built on relationships and
trust. The more we can help our clients
define and achieve their financial
objectives, the more trust they will place
in us to continue to meet their investment
goals and strengthen the relationship.
Bank of Hawaii’s team of Financial
Advisors helps our clients achieve these
goals at every stage of their lives, offering
retirement, investment and education
planning, managed money, annuities,
insurance and brokerage services.

In 2015, we made enhancements to our
financial planning process, allowing us to
better identify our clients’ financial goals
and continue to improve our relationship-

based approach to providing investment
services. Additionally, 2015 marked the
first full year for our Managed Account
Portfolio Solutions (MAPS) program,
offering our clients over 80 actively
managed fund strategies. Whether
a client is trying to plan for retirement or
to leave a legacy, our Financial Advisors
can create and implement a personalized
financial plan to help achieve their
unique investment goals.

Estate Planning and Trust Services

As the largest administrator of
irrevocable trusts in the state, Bank of
Hawaii knows that estate planning is
a vital part of our customers’ overall
financial planning, giving them greater
control in leaving more of a legacy to
loved ones and to the community. With
a wealth of specialized trust
administration and planning knowledge
available, our experts serve as a resource
to our dedicated relationship officers.

For the complex advanced planning
needs of wealthier clients, Bank of
Hawaii’s trust services team can help
ensure that hard-earned financial
success is preserved, protected and
transferred in a way that supports the
people and institutions that our
customers designate. With their priorities
as a guide, we cultivate relationships as
trusted resources and partners to not
only the customers, but also to their
advisors, family members and
beneficiaries. Our capable trust and
estate administration team includes
planning, tax and investment
professionals who can transition gifts
in tax-efficient ways. With more than
$3 billion in assets under management,
Bank of Hawaii has the depth of expertise
and knowledge necessary to handle every
aspect of our clients’ trust accounts.

B A N K O F H A W A I I 2 0 1 5 A N N U A L R E P O R T

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

Bank of Hawaii’s new

debit cards with chip

technology: Bank of

Hawaii Visa Debit Card,

Bank of Hawaii Black

Visa Debit Card,

Bankoh Hawaiian

Airlines Visa Debit

Card; EASE by Bank of

Hawaii Visa Debit Card,

Bank of Hawaii

Visa Debit Card for

Business. All debit

cards, except for EASE

by Bank of Hawaii

Visa Debit Card, were

Richard Ltd.

designed for multi-generational families
in East Kapolei. The building is currently
under construction, and when completed
will consist of 188 low-income rental
units.

In 2015, Bank of Hawaii partnered with
a nationally recognized retirement plan
fiduciary to help our corporate and
commercial clients design and manage
401(k) plans in an increasingly stringent
regulatory environment. Our customers
are enjoying the benefits from improved
risk management from this specialist
and, in many cases, reduced costs.

Bank of Hawaii continues as the
established leader in the local captive
insurance market, overseeing more than
$1 billion in investment assets and
deposits. Bank of Hawaii provides a full
range of banking and investment
products to more than 80 diverse local,
national and international captive clients,
with more than 40 percent of the market
share. Their businesses come from
a range of geographies and industries,
including healthcare, hospitality, energy,
retail, construction and technology.

In addition to being the first local
financial services institution to license
a captive with the State of Hawaii
Insurance Division, Bank of Hawaii has
strongly supported the Hawaii Captive
Insurance Council (HCIC), a 501c3
industry trade association since its
inception in 2011. As competition for
captive insurance business increases
among mainland and global domiciles,
Bank of Hawaii (through HCIC) is helping
the state of Hawaii maintain and grow its
overall market share by supporting
domicile business development efforts at
local conferences as well as at mainland
and Japan industry marketing events.

BANKING FOR BUSINESS

Bank of Hawaii invests in the success and
growth of our community through
helping businesses grow, compete and
thrive. The bank offers a wide spectrum
of financial services and products to
meet the needs of first-time business
owners as well as the sophisticated needs
of large corporations or international
business owners. Bank of Hawaii has the
expertise, talent and resources to help
them all succeed.

Commercial/Corporate Banking

Our team of commercial and corporate
bankers continues to take a leadership
role in partnering with Hawaii’s mid-size
companies and large corporations to help
them succeed. Our bankers are among
Hawaii’s most experienced financial
services teams. They excel at helping
corporate and commercial account
holders maximize the productivity of
capital and optimize business cash flow
through an array of cash management
services, such as reconciliation, positive
pay, ACH debit block and origination,
payroll, imaging, electronic data
interchange and tax payment
processing.

With a focus on bringing affordable
housing to market, Bank of Hawaii’s
experts in its Commercial Real Estate
Lending Division assist developers in
effectively navigating the intricacies of
acquisition and financing. In addition to
801 South St., the bank financed the
construction for Phase I of Meheula
Vista, a 75-unit affordable housing rental
project for seniors in Mililani Mauka and
Phase II of Ko‘oloa‘ula, a property

Business Banking

Small businesses and entrepreneurs
make up the backbone of Hawaii’s
economy, and Bank of Hawaii remains
dedicated to serving them by providing
a comprehensive range of deposit and
loan products and services. Our local
business bankers and relationship
managers understand the unique
challenges of doing business in Hawaii,
and are available to counsel and support
small business owners, helping them
move forward now and for years to come.

In 2015, we once again led all lenders in
state SBA guaranteed loans, recording 50
loans in Hawaii and Guam valued at $11
million, which earned us the U.S. Small
Business Administration’s Lender of the
Year Award for Category 1. We are proud
to have received this prestigious award in
11 out of the past 13 years.

Our Technology Systems

Our technology systems are unseen, but
they remain critical to our ability to
deliver exceptional service efficiently,
quickly and securely. In an environment
where financial institutions remain on
alert against increasingly sophisticated
threats, focus on cybersecurity is one of
our highest ongoing priorities. As use of
our electronic transactions, services and
applications continues to grow, we
continuously upgrade and update our
systems to keep pace with the demand,
making sure that customers’ financial
information remains secure.

Rooted in Our Community

Rea ching for the Sk y

R O O T E D I N O U R C O M M U N I T Y

At Bank of Hawaii, our roots of community support run deep. With year-round

philanthropic efforts through event sponsorships, Bank of Hawaii Foundation

grants and the generosity of our employee volunteers (known as the Bankoh

Blue Crew), we partner with hundreds of local nonprofits that are addressing

a wide spectrum of causes and finding creative solutions to enhance the

quality of life in our communities.

Our commitment to community is
at the heart of our ‘ohana, and our
culture of giving is perpetuated in
our three signature community
activities—the annual walk, annual
giving campaign and volunteer
program. We are proud of our work
in 2015 to support the people of
Hawaii.

Each year, employees and their
families contribute their time and
expertise to hundreds of community
projects through our Live Kōkua
Volunteer Program. In 2015, our
Bankoh Blue Crew contributed
11,225 hours of their personal time,
participating in 124 community
service events.

In total this year, bank employees
and retirees raised approximately
$774,000 through our annual walk
and giving campaign.

Our ongoing volunteerism,
community service and financial
education was recognized with
the national Corporate Social
Responsibility Leadership Award,
presented to the bank from the
Financial Services Roundtable for
the fifth year in a row in 2015.

At Bank of Hawaii, we recognize that
small changes can have a big impact.
By partnering together, we have the
power to improve the communities
where we work and live.

For the ninth year in a row,
approximately 2,000 employees and
their families showed their support
for the Bank of Hawaii Live Kōkua
Community Walk on Oahu in April.
This year’s beneficiaries were Hawaii
Meals on Wheels, Hawaiian Humane
Society and American Cancer
Society-Hawaii Chapter. Since the
walk’s inception, Bank of Hawaii
employees have raised more than
$1 million for 31 nonprofits.

Our Live Kōkua Giving Campaign
was developed to offer our
employees and retirees more
choices for their annual giving.
Over a five-week period in 2015, we
raised a record-breaking $667,889 in
donations for 23 local organizations.
Since its inception in 2010, Bank of
Hawaii employees and retirees have
raised approximately $3.4 million for
111 local organizations.

At left: In December 2015, Bank
of Hawaii employees planted 30

koa trees on the slopes of

Mauna Kea on Hawaii Island to

symbolically replace the wood

used to build the Bank of Hawaii

koa canoe, Ulu o ka lā, created by

master canoe builder Nakoa

Prejean. Meaning "growing sun,"

Ulu o ka lā refers to the first light

of the sun on the horizon. It is

a symbol of our commitment to

meet the opportunities of

tomorrow through the timeless

values that sustain Bank of Hawaii

and our community.

Bottom Left: The Bankoh Blue
Crew volunteered to spruce up Ala

Moana Beach Park for Community

Service Day (left) and restore

He‘eia stream with native plants in

support of nonprofit Papahana

Kuaoloa.

B A N K O F H A W A I I 2 0 1 5 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

Nurturing

O ur G reatest A sset s

Employees’ motivation and commitment to timeless values are central to our

ongoing growth. While the financial services industry continues to evolve

and innovate through new technology, we know that the most vital factor for

our success is our employees. Their commitment to exceptional service for

customers and colleagues, combined with our culture of ‘ohana, are what set

us apart in the marketplace.

Bank of Hawaii strives to hire the
best and brightest talent we can
find, and we are committed to
investing in our employees’ personal
and professional development and
growth throughout their careers.
This keeps them engaged and drives
the company forward. We offer
a wide variety of courses each year,
ranging from training in CPR and
first aid to people skills and
leadership development. In 2015,
2,800 participants enrolled in over
150 sessions offered across the
bank.

For more than 50 years, Bank of
Hawaii has been developing
leadership potential through its
Bank Associate (BA) program,
a structured rotational learning
program that introduces specially
hired individuals to different
business areas. Through exposure
to various functions and roles
outside of their own, participants
develop a better understanding of
how they interconnect when
executing strategies. They also
receive valuable business and
project management skills training,
and develop relationships with
assigned mentors and senior
management that can help enrich
their careers.

The ongoing success of the BA
program inspired the development
of an equivalent program for
employees with leadership potential.
Since the six-month Pathways to
Professional Excellence (PPE)
program was first introduced in
2007, more than 200 employees
have graduated. Similar to the
BA program, through specialized
training, participants gain a broader
understanding of the complexity of
the bank network and deepen their
knowledge, skills and abilities to
better serve customers and work
with colleagues.

Our employees are honored to be
part of the 118-year legacy of the
Bank “of Hawaii.” By coming
together as one ‘ohana to learn
more about timeless Polynesian
traditions that are reflected in the
bank’s core values of excellence,
integrity, respect, innovation and
teamwork, employees gain a deeper
appreciation of Hawaiian heritage
and the community we serve. In
2015, Bank of Hawaii commissioned
master canoe builder Nakoa Prejean
to build a canoe, wa‘a in Hawaiian,
giving employees and their family
members multiple hands-on
opportunities to learn more about

Polynesian canoe building and
navigation. After months of
meticulous construction utilizing
traditional and new building
techniques, the wa‘a was blessed
and named Ulu o ka lā in January
2016. Meaning "growing sun,"
Ulu o ka lā refers to the first light of
the sun on the horizon, and serves
as a reminder of both our past and
as a symbol of our future journey
together, as employees rise to bring
innovative solutions to our
customers.

In 2015, Bank of Hawaii was once
again recognized as one of the “Best
Places to Work.” In addition to
ranking among Hawaii’s top 15 large
companies who received this
distinction, Bank of Hawaii was also
ranked No. 3 in the “Most Family-
Friendly” category.

Our most important asset is our
people. Through our ongoing
investment in the growth and
development of our employees
over the span of their careers,
Bank of Hawaii continues to enhance
a culture of engaged, innovative
teams who are energized to delight
our customers and build for
tomorrow.

10 B A N K O F H A W A I I 2 0 1 5 A N N U A L R E P O R T

O ur G reatest A sset s

Left: Bank of Hawaii Foundation awarded
32 scholarships to children of bank

employees. Seated, first row, from left:

Cheyenne Koki, Kelsey Morihara,
Pu‘uwaialoha Medina, Destiny Holani,
Natalie Hajinelian, Nadine Yokotake and
Mary Pascual. Seated, second row, from
left: Kylie Nishino, Ashlynn Shiraishi,
Jennifer Takahashi, Stephanie Balais,
Nicole Wheatman, Kelli Nakashima,
Teigher Gella and Ennah Cabading.
Standing, from left: Eleu Akimseu, Dylan
Matsuda, Nicholas Young, Keegan
McCrary, Micah Miyasato, Devin Jandoc,
Tyler Trent, Deja Ceruti, Adriana Jones
and Abcde Zoller. Not pictured:
Emma Ayau, Lily Ayau, Anela Mattson,

Tori Teramae, Megan Togami, Melanie

Tomita-Cadavona and Brittany Wheatman.

Above: Bank of Hawaii’s Chairman, President and CEO
Peter Ho; Chief Marketing Officer Susan Ing; Chief Financial
Officer Kent Lucien and canoe builder Nakoa Prejean sail
aboard Ulu o ka lā for an inaugural ride around Kaneohe Bay.

Above: Twenty-three Bank of Hawaii employees graduated from the
2015 Pathways to Professional Excellence (PPE) program. First row,

from left: Olivia Marumoto, Beejay Quang, Silnia “Shyll” Domingo,
Christopher Hodges, Sarah Venzon, Liz Carlson and Kyle Bischoff.
Second row: Richmond Lee, Mike Ernst, Lyndy Lien, Marianne
Pedro, Kelli Henmi, Courtney Kim, Eric Masumori and Matthew
Pollard. Third row: Cameron Carter, Joe Lecocq, Lale Turcan,
Landon Santos, Jimmy Field and Michael Foster. Missing from
photo: Guillaume Dommergues.

Left: Yoga is one of many “Thrive” classes offered through Bank of
Hawaii’s “Grow. Connect. Thrive” program that allows employees the

opportunity to improve their fitness and overall well-being. Left:

Instructor Matt Meko (center), Midori Ono, Juvy Sunahara, Merleen
Lee and Janis Loventhal. In back: Val Ito and Jonna Wickesser.

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

Tim Moore, Michael Moore and Robert Aguiar

H OA L O H A N A E H A I N C . D B A O L D L A H A I N A L UAU

N A H OA L O H A E KO L U LT D . D B A S TA R N O O D L E ; A L O H A M I X E D P L AT E ; L E O DA’ S K I T C H E N & P I E S H O P

TI M M OO R E : We started our
relationship with Bank of Hawaii
about three or four years ago with
the refinancing of our personal
property. A couple of years prior to
that, we had a casual conversation
about the terms of our mortgage,
and they did some calculations and
determined that they weren’t able
to help us improve the financing at
that time.

I had completely forgotten that
conversation when they called
about 18 months later to offer us
some creative and enticing
financing options. It really amazed
me that they kept us in mind, and I
began to realize this is a very
different relationship with Bank of
Hawaii than we’d experienced with
any bank before.

Historically, our relationship with
a bank has been as a lender that
approves or disapproves based
on our meeting all of their
requirements. With Bank of Hawaii,
our relationship transitioned to one
of coaching and understanding.
Eventually, it became beneficial
to have all of our personal and
business financial services with
Bank of Hawaii, including the
checking and credit card services
for all of our businesses.

M I CHAE L M OO R E : Moving to
Bank of Hawaii felt like they were
not only working to understand our
business and our financial needs,
but also that they were anticipating

our needs by making suggestions.
Their proactive approach lets us
know they are looking out for our
best interests.

TI M : Creating this type of
relationship is unusual; to have
a bank as a partner in your financial
planning, coaching you and helping
you move forward to reach new
goals—I don’t think we even knew to
expect that. All of this came with
our move to Bank of Hawaii.

M I CHAE L : When we initially
started the Old Lahaina Luau in
1986, the bankers we met were
reluctant to lend to us because they
immediately categorized us as
a restaurant. Banks didn’t seem to
understand the financial operations
of a luau, including paying
commissions and carrying an
accounts receivable, is completely
different from a restaurant. It took
many years for other banks to
understand our business model.
Now, we have a relationship with
a bank that understands our
business and its needs.

RO B E RT AG U IAR : Hawaii’s visitor
and entertainment industries are
unique, and Bank of Hawaii has
taken pains to learn more about
these areas, and to understand our
businesses and the curves that we
take. Their people work hard around
the islands to understand the
differences between their clients.

TI M : It’s very important to us to
work with a bank with a footprint
here in the islands. Bank of Hawaii
is really integrated into the
community, just as we try to be as
well. The people we work with—
Galen Nakamura, Annalena Zanolini
and Jon Fujimoto—are all really
active in the community outside of
banking.

RO B E RT: Galen, Annalena and
Jon’s advocacy, expertise and
knowledge of the Maui community
are really important ingredients.
They are easy to be around as
people; they talk our language.
They seem like friends; we can
catch up on Maui life when we’re
with them. We appreciate
relationship banking—to us it’s not
just a marketing term; it really works
for us.

TI M : We appreciate having this
relationship with Bank of Hawaii,
and the bank is fortunate to have
Galen, Jon and Annalena working
for them.

Owners (from left) Tim Moore,

Michael Moore and Robert Aguiar on

the grounds of the Old Lahaina Luau

on Maui.

B A N K O F H A W A I I 2 0 1 5 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 A N D B U S I N E S S B A N K I N G C L I E N T S

Marian Lee and Matt Leo

M O J O B A R B E R S H O P & S O C I A L C L U B ; M O J O M c C U L LY

MAT T LEO : I’m a welder and car
fabricator, but Mojo Barbershop
was my idea. When we moved back
to Hawaii from Portland, Ore. in
2009, I missed my regular barber
and the whole barbershop
experience. I would go there every
two weeks in Portland, and when
we returned to Hawaii there was
nothing like it here.

MAR IAN LE E : It took us about
a year from having the idea to
leasing the space, creating the
business plan, getting everything
approved by the bank, and hiring
people. Bank of Hawaii helped
finance our first downtown location
and our second one, which recently
opened in McCully.

For the first location, Bank of Hawaii
was with us from the start. We were
aware of SBA loans, but the bank
was very helpful in explaining what
we could qualify for, and how to go
about it. As first-time business
owners, we really didn’t know what
to expect, but the bank walked us
through it step-by-step. They
reviewed our business plan,
reviewed our financials, gave us
good advice and spent a lot of time
with us.

We’ve been in business for four
years now, and we had to turn away
customers every day. We realized
that in order to keep up with
demand, we needed to open up

a new location serving different
clients. Reid Hinaga and Jenny
Kajioka helped us with the new
financing. The second time around
was more straightforward because
of the relationships that had already
been built.

Our newest location is in the historic
McCully Chop Sui building; I’m
grateful that the relationship with
Bank of Hawaii was already
established so that we could move
on this rare opportunity.

Bank of Hawaii is the major bank of
Hawaii, and having that level of
backing is very important to us. It’s
also important that the bank that
we bank with understands the
needs of a small, local business, and
can provide a personal touch. For
example, Chris Otto has been very
helpful in handling our personal
investments, and he’s also given us
a lot of personal encouragement
and support by referring our
services to others.

MAT T: Marian does most of the
banking for our family as well as the
business. Whenever I go into
a branch, the people are always
helpful and friendly, always willing
to go the extra mile. It feels like
family when you go in to Bank of
Hawaii. Our daughter Olivia and son
Ari will become customers when
they get older too.

MAR IAN : My background is
finance, and I handle the day-to-day
operations of the business. Either
my receptionists or I make the daily
deposits and get change, and it’s
always a pleasant experience. We
also frequently use online banking
to check on deposits and balances,
both for our business and for our
family finances.

For me, Bank of Hawaii sets the
standard of excellence in what you
expect from a bank. When you think
of Bank of Hawaii, you think of
experts and exceptional customer
service. Because of the relationships
we’ve built with everyone—from
personal banker, to business banker,
to investment banker, to tellers—
there’s a lot of trust that’s been
developed. We know them, and
they know our business and they
know us.

We wouldn’t think of banking
anywhere else because of the
special relationships and trust that
we’ve built. It doesn’t make sense to
try to build that anywhere else.

Owners Matt Leo and Marian Lee in their

newly opened Mojo McCully Barbershop,

located in the historic McCully Chop Sui

Building.

B A N K O F H A W A I I 2 0 1 5 A N N U A L R E P O R T

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

Colbert Matsumoto and Franklin Tokioka

I S L A N D H O L D I N G S : I S L A N D I N S U R A N C E C O M PA N I E S ; AT L A S I N S U R A N C E AG E N C Y I N C . ; I C I N T E R N AT I O N A L ;

PAC X A ; A N D T R A D E W I N D C A P I TA L G R O U P I N C .

CO LB E RT MATS U M OTO : Our
relationship with Bank of Hawaii
began in 1939 when Island
Insurance was first established. That
was during the plantation era. Bank
of Hawaii has been our bank since
then and has played an important
role in enabling our growth to
become one of the largest locally
owned enterprises in Hawaii.

FR AN K LI N TO K IO K A : My family
has been a customer for over 80
years, even before Island Insurance
was started.

In the early days, Island Insurance
relied on a draft system that was
basically a line of credit. Claims
were paid using drafts that were
honored by the bank, which would
then call us for payment. Since they
were advancing funds, the system
required a high level of confidence
that they would be repaid. Bank of
Hawaii gave us that trust from our
start, and we are grateful for that.

In addition to our longstanding
relationship, we value Bank of
Hawaii for its local roots.

CO LB E RT: For example, over the
last three years Bank of Hawaii was
the lead construction lender for the
801 South St. workforce housing

development, which we have been
developing along with Downtown
Affordable. When we first
approached the bank, we described
our goal to develop housing for
Hawaii’s young working families to
help them get started in life with
the purchase of their first home.
This resonated with the bank’s
executive team. Because they care
deeply about our community they
immediately endorsed our goals.
We felt good to be working with
a bank that shared the social
objective we sought to achieve
through this project.

FR AN K LI N : The bank can share
our pride in knowing that close to
100 percent of the units were sold
to local families.

CO LB E RT: Bank of Hawaii was on
the front end as the lead
construction lender, and also on the
back end as the principal residential
mortgage lender. While the
mortgage loans weren’t jumbo ones
as with other luxury projects in
Kakaako, Bank of Hawaii stepped
up to meet the financing needs of
our buyers. They had confidence
that these were very good loans
because they were being made to
working people who form the
backbone of our community.

FR AN K LI N : One of the big
challenges for local companies like
ours doing business in Hawaii is the
influx of out-of-state competitors.

CO LB E RT: Yes, all of our
competitors on the insurance side
of our house are now global
companies with tremendous scale.
We distinguish ourselves from our
competition by how we do business.
We work with our customers on
a personal level. They like working
with a local company that is truly
responsive to their situation. Bank
of Hawaii has a similar style of doing
business. Our relationship with
them enables us to tap their
resources to help maintain our
competitive edge.

FR AN K LI N : There’s no question
that we would recommend Bank of
Hawaii. I would tell anyone that they
can bank with confidence with Bank
of Hawaii. It’s a solid financial
institution with a level of sensitivity
and customer service that would
make anyone happy.

Executive Chairman Colbert Matsumoto of

Island Holdings and Chairman Emeritus

Franklin Tokioka inside the Island Insurance

building in downtown Honolulu.

B A N K O F H A W A I I 2 0 1 5 A N N U A L R E P O R T

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

Kim and Wade Lord

K I M LO R D : I was born and raised
in Hilo, and my father took me to
a Bank of Hawaii branch to open my
first savings account about 50 years
ago. We’ve stayed with the bank our
entire lives, and Wade and I started
our two daughters’ banking the
same way, with savings accounts.
Our children are fourth-generation
Bankoh people.

WAD E LO R D : My introduction to
Bank of Hawaii came when I moved
to the islands after college.
I needed to set up a bank account
to establish credit. I opened up
a little account—a very little account.

K I M : Now that our daughters are
over 18 and making their own
financial decisions, they could
choose to open up bank accounts
someplace else, but the bank’s
electronic banking fits their
Millennial lifestyle. They can easily
manage their finances while they’re
away at college.

WAD E : Most of the family banking
is now electronic. I can watch
football and pay bills, transfer
money into savings, and run
different reports if I’m gathering
tax information for our CPA.

K I M : We often see Bank of Hawaii
representatives at the same
charitable events, at chamber of
commerce, or other community
functions. It’s nice to see that the
bank supports its community.

WAD E : It reinforces the reasons
that we’re at the bank. One great
example of a community banker is
Sonia Topenio, who has been our
champion.

K I M : She has become a dear friend,
easing our lives with her support for
our banking needs. With our
two-kid, two-income household,
she has made banking easier for us,
and we’re very grateful for her time,
care and understanding.

WAD E : Because the bank has an
overview of our longtime financial
strategy, they have stayed in
contact about opportunities that fit
our strategy. Jennifer Sandrowski
and the Personal Banking team on
Kauai always keep our goals top of
mind. When interest rates went
down, she proposed refinancing our
mortgage and put us in touch with
a loan officer who also helped us
with a home equity.

K I M : Now that we’re at the stage
where we are thinking more about
retirement, our Personal Banking
team recommended the bank’s
financial advisors. We’re talking to
Ronald Chang in Private Banking
and Iris Okawa in Personal Trust
to revise and fortify our estate
planning.

WAD E : We’ve done our estate
planning, but it’s been many years
since we put it in place. The BOH
team has offered to help us update

it, and take advantage of new laws
that might make for a better plan.
We appreciate the people who’ve
helped and the services that have
been offered to us over the years.
It’s a good feeling to know that they
want to see us be successful.

To me, Bank of Hawaii stands for
financial partnership. I don’t really
look at the bank as a service vendor
as much as I do a partner. The seeds
of that partnership started a long
time ago, have grown over the years,
and it’s now a really deep
relationship.

K I M : I think it’s obvious that for
Wade and me, Bank of Hawaii is our
bank of choice for our personal use.
It’s so interesting that 50 years ago
I went to the bank with my dad with
probably the first money I had, and
today we’re talking about how to
make our family secure for
perpetuity. Our life has changed so
much over the years, but our bank
has so many services that it’s still
able to help and serve us with our
needs 50 years later. That’s
amazing.

Kim and Wade Lord in the Mahiko Lounge

at Gaylord’s at Kilohana, Kauai.

B A N K O F H A W A I I 2 0 1 5 A N N U A L R E P O R T

2 0 1 5 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)

FOR THE YEAR ENDED DECEMBER 31

2015

2014

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

Other 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

298,522

267,407

41,492

89,650

1,133

1,305

432,110

9,626

25,364

3,021

38,023

394,087

1,000

393,087

47,685

11,583

34,072

53,353

10,160

7,664

7,039

14,663

186,219

191,963

30,217

20,162
16,472

9,660

8,669

70,961

348,104

231,202

70,498

160,704

3.72

3.70

1.80

43,217,818

43,454,877

42,475

105,860

673

1,209

417,633

9,534

25,905

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

163,042

3.71

3.69

1.80

43,899,208

44,125,456

Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 for the Consolidated Financial Statements,

including Report of Independent Registerd Public Accounting Firm, thereon.

20 B A N K O F H A W A I I 2 0 1 5 A N N U A L R E P O R T

Consolidated Statements of Condition

Bank of Hawaii Corporation and Subsidiaries (dollars in thousands)

AS OF DECEMBER 31

2015

2014

Assets
Interest-Bearing Deposits in Other Banks

Funds Sold

Investment Securities

Available-for-Sale

Held-to-Maturity (Fair Value of $4,006,412 and $4,504,495)

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

Other 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, 2015 - 57,749,071 / 43,282,153

and December 31, 2014 - 57,634,755 / 43,724,208)

Capital Surplus

Accumulated Other Comprehensive Loss

Retained Earnings

Treasury Stock, at Cost (Shares: December 31, 2015 - 14,466,918

and December 31, 2014 - 13,910,547)

Total Shareholders’ Equity

Total Liabilities and Shareholders’ Equity

4,130

592,892

2,873

360,577

2,256,818

3,982,736

4,808

7,878,985

(102,880)

7,776,105

14,617,489

158,699

111,199

44,719

824

23,002

31,517

268,175

199,392

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

15,455,016

14,787,208

4,286,331

3,832,943

2,761,930

5,025,191

1,177,651

13,251,103

7,333

628,857

245,786

47,374

5,032

17,737

135,534
14,338,756

575

542,041

(23,557)

1,316,260

(719,059)

1,116,260

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

15,455,016

14,787,208

Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 for the Consolidated Financial Statements,

including Report of Independent Registerd Public Accounting Firm, thereon.

2 0 1 5 F I N A N C I A L S
2 0 1 5 R E L A T I V E P R I C E P E R F O R M A N C E

2015 Relative Price Performance

$120

$115

$110

$105

$100

$95

$90

$85

MARCH 31

JUNE 30

SEPT 30

BOH

S&P 500

KBW REGIONAL BANK INDEX

Unbroken History of Dividends

R E C E S S I O N

F I N A N C I A L C R I S I S

$2.00

$1.75

$1.50

$1.25

$1.00

$0.75

$0.50

$0.25

$0.00

1985

1990

1995

2000

2005

2010

2015

Historical Dividends Adjusted for Stock Splits

22 B A N K O F H A W A I I 2 0 1 5 A N N U A L R E P O R T

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

N I I H A U

K A U A I
BOH Branches: 5

BOH ATMs: 27

B A N K O F H A W A I I

• 7 0 B R A N C H E S

• 4 5 6 A T M s

O A H U
BOH Branches: 37

BOH ATMs: 289

M O L O K A I

L A N A I

K A H O O L A W E

M A U I C O U N T Y
BOH Branches: 12

BOH ATMs: 43

H A W A I I
BOH Branches: 11

BOH ATMs: 48

S A I P A N
BOH Branches: 1

BOH ATMs: 6

A M E R I C A N S A M O A
BOH Branches: 1

BOH ATMs: 7

G U A M
BOH Branches: 2

BOH ATMs: 33

P A L A U
BOH Branches: 1

BOH ATMs: 3

Map not to scale

M A N A G I N G C O M M I T T E E

Bank of Hawaii Corporation / Bank of Hawaii

From left:

Mary E. Sellers,

Kent T. Lucien,

Peter S. Ho and

Mark A. Rossi

From left:

Derek J. Norris,

Jill F.S. Higa,

James C. Polk,

Donna A. Tanoue and

Wayne Y. Hamano

Peter S. Ho
Chairman, President and Chief Executive Officer

Kent T. Lucien
Vice Chair and Chief Financial Officer

Peter M. Biggs
Vice Chair and Chief Retail Officer

Sharon M. Crofts
Vice Chair
Client Solutions Group

Wayne Y. Hamano
Vice Chair and Chief Commercial Officer

Alton T. Kuioka
Vice Chair of Board of Directors of
Bank of Hawaii

Derek J. Norris
Vice Chair
Residential and Consumer Lending

Mark A. Rossi
Vice Chair, Chief Administrative Officer,
General Counsel & Corporate Secretary

Mary E. Sellers
Vice Chair and Chief Risk Officer

Donna A. Tanoue
Vice Chair
Client and Community Relations

24 B A N K O F H A W A I I 2 0 1 5 A N N U A L R E P O R T

From left:

Kevin T. Sakamoto,

Vincent E. Barfield,

Peter M. Biggs,

Susan L. Ing and

David Oyadomari

From left:

Dean Y. Shigemura,

Sharon M. Crofts,

Alton T. Kuioka and

Sheh Bertram

Vincent E. Barfield
Senior Executive Vice President
Investment Services Group

David Oyadomari
Senior Executive Vice President
Alternative Channels Division

Sheh Bertram
Senior Executive Vice President and
Chief Information Officer

James C. Polk
Senior Executive Vice President
Consumer Banking Group

Jill F.S. Higa
Senior Executive Vice President
Branch and Community Banking

Kevin T. Sakamoto
Senior Executive Vice President
Branch Delivery

Susan L. Ing
Senior Executive Vice President and
Chief Marketing Officer

Dean Y. Shigemura
Senior Executive Vice President and Controller

B O A R D O F D I R E C T O R S

Bank of Hawaii Corporation / Bank of Hawaii

Board of Directors

(seated, from left):

Kent T. Lucien, Barbara J.

Tanabe, Peter S. Ho,

Mary G.F. Bitterman and

Victor K. Nichols. (standing

from left): Robert A. Huret,

Mark A. Burak, Michael J.

Chun, Clinton R. Churchill,

Robert W. Wo, Raymond P.

Vara, S. Haunani Apoliona,

Martin A. Stein, Donald M.

Takaki, Alton T. Kuioka and

Donna A Tanoue.

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

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

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.

26 B A N K O F H A W A I I 2 0 1 5 A N N U A L R E P O R T

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

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

HAWAII
Hawaii gross domestic product in 2014: $77.4 billion
(in current dollars)2
- Government (federal civilian & military,

and state and local): 22.1%

- Real estate, Rental and Leasing: 19.7%
- Accommodation and Food services: 8.3%
- Retail trade: 6.9%
- Health care and Social assistance: 6.4%
- Construction: 5.5%
- Transportation and Warehousing: 4.4%
- Professional and Technical services: 4.1%
- Finance and insurance: 3%

Tourism’s direct and indirect impact on Hawaii gross domestic
product (in current dollars) in 2014: 16.7%3

State of Hawaii resident population as of July 1, 2015: 1,431,6034

GUAM
- U.S. Territory
- Capital: Hagatna (Agana)
- Resident population: July 2015 estimate 161,7855
- Main industries: U.S. military and tourism.

AMERICAN SAMOA
- U.S. Territory
- Capital: Pago Pago
- Resident population: July 2015 estimate 54,3435
- 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 2015 estimate 52,3445
- Main industries: tourism, banking and construction.

PALAU
- Constitutional government in free association with the U.S.
- Capital: Melekeok
- Resident population: July 2015 estimate 21,2655
- Main industries: tourism, craft items and construction.

BANK OF HAWAII BRANCHES AND ATMS
(As of December 31, 2015)

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

Total

Branches
and In-Store
Branches
65
37
11
10
5
1
1

4
1
2
1

ATMs
407
289
48
41
27
1
1

42
6
33
3

456

1 Table 12.29, Hawaii DBEDT State of Hawaii Data Book 2014, pg 89, 2014 Employment and Payrolls in Hawaii:

https://www.hiwi.org/admin/gsipub/htmlarea/uploads/LFR_QCEW_ES2014.pdf

2 Table 13.05, Hawaii DBEDT State of Hawaii Data Book 2014,

http://files.hawaii.gov/dbedt/economic/databook/2014-individual/13/130513.xls from the U.S. Bureau of Economic Analysis, Gross Domestic
Product by Industry 1963 to 2014: www.bea.gov/regional/index.htm

3 Calculation based on Tables 13.05 and 7.32, Hawaii DBEDT State of Hawaii Data Book 2014,

http://files.hawaii.gov/dbedt/economic/databook/2014-individual/07/073213.xls and
http://files.hawaii.gov/dbedt/economic/databook/2014-individual/13/130513.xls

4 Table 1, Hawaii DBEDT State of Hawaii 2015 State Population Estimates,

http://files.hawaii.gov/dbedt/census/popestimate/2015_state_pop_hi/NST-EST2015-01.pdf

5 Central Intelligence Agency (CIA), The World Factbook (2015).

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 29, 2016, 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.

28 B A N K O F H A W A I I 2 0 1 5 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) competitive

pressures in the markets for financial services and products; 4) the

impact of legislative and regulatory initiatives, particularly the
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010

(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 merchants, 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. Given these risks and uncertainties,

investors should not place undue reliance on forward-looking

statements as a prediction of actual results. 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

is included under the section entitled "Risk Factors" in Part I of this

report. 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. 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, 2015, 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