2 0 1 8 A N N U A L R E P O R T
C R E A T I N G M O M E N T S .
delivering dreams. C O N T E N T S
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Chairman’s Message
2018 Financial Summary
Year in Review
Our Community
Our Employees
Client Prof iles
2018 Financial Report
Relative Stock Prices
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Bank of Hawaii Locations
26 Managing Committee
28
Board of Directors
29
Shareholder Information
C R E AT I N G M O M E N T S . D E L I V E R I N G D R E A M S .
Committed to providing convenience and choice, Bank of
Hawaii gives customers the ability to take control of their
f inances and conduct banking when, where and how they
want to. The balance of digital options and exceptional
personal assistance allows customers to have more time
to live the lives they want to lead.
© 2019, Bank of Hawaii Corporation. Bank of Hawaii®, Bankoh®,
SimpliFi Mortgage by Bank of Hawaii®, The Private Bank of Bank of Hawaii®
and the Bank of Hawaii logo are registered trademarks of Bank of Hawaii.
SmartMoney Seminar is a trademark of Bank of Hawaii. Bank of Hawaii is
an equal housing lender and member of FDIC. Bankoh Investment
Services, Inc. is a non-banking subsidiary of Bank of Hawaii, member
FINRA and SIPC. All other trademarks and service marks appearing in this
report, in print or online, are the property of their respective owners and
no claim of ownership is made by their use.
View Bank of Hawaii’s 2018 digital summary annual report, featuring videos
of our Chairman, clients, community and employees at www.boh.com.
Bank of Hawaii had another solid year
in 2018 utilizing the same steady and
conservative measures that are long-
standing hallmarks of our operating
approach. We are well-positioned to
meet our long-term goals.
Our consistent performance is thanks
to our 2,100 hard-working employees
and our dedicated customers, who
helped Bank of Hawaii earn local and
national accolades. We are proud to
have our deposits rated Aa2 by
Moody’s Investor Services, one of the
highest ratings, nationally and globally,
as of Dec. 28, 2018. In 2018, Forbes
magazine named Bank of Hawaii
one of “America’s Best Banks” and
“Best-in-State.” Bank Director
magazine honored us with its national
“Best Board” award, plus several
recognitions in its Western U.S. region
category: Best Corporate Citizen,
Best Technology Strategy, No. 2 Best
Bank and No. 2 Best Bank for Millennial
Employees. Some of our local awards
include being selected a “Best Places
to Work,” for the f ifth consecutive
year, No. 1 Family-Friendly and
No. 1 Healthiest large company by
Hawaii Business magazine; as well as
“Hawaii’s Best Bank” by the Honolulu
Star-Advertiser, Hawaii Tribune-Herald
and The Garden Isle readers.
DEAR FELLOW SHAREHOLDERS, Continued Financial Strengths
Diluted earnings per share reached
a record high of $5.23 for 2018, up
20.8 percent compared to 2017.
We continued to show strong growth
in total loans and leases in 2018, which
were up 6.7 percent, to $10.4 billion,
from $9.8 billion in 2017. Commercial
loans increased 5.7 percent, to $4 billion,
in 2018, compared to $3.8 billion in 2017.
Net income for the year was $219.6
million, an increase of 18.9 percent, or
$34.9 million, from net income of $184.7
million from 2017.
Our net interest margin for 2018 grew to
3.05 percent, from 2.93 percent in 2017.
In 2018, our board of directors approved
an increase in our dividend to $0.62,
from $0.50 at the end of 2017. Our board
also increased the authorization to
repurchase shares by $130 million.
Since the start of the share repurchase
program in July 2001 through December
2018, we repurchased 55.3 million
shares and returned approximately
$2.2 billion to shareholders, at an
average cost of $39.14 per share.
Hawaii’s Economy
Our success is reflective of Hawaii’s
healthy economy, which is supported
by our low unemployment and strong
tourism and real estate industries.
Statewide, Hawaii’s seasonally adjusted
unemployment rate remains among the
lowest in the country at 2.5 percent
in December 2018, compared with
3.9 percent nationally.
Our visitor industry achieved record
arrival and spending results for the sixth
consecutive year. Spending increased
6.8 percent in 2018 to $17.82 billion.
Arrivals increased 5.9 percent to 9.95
million visitors.
The Hawaii real estate market remained
strong in 2018. The median sales price
for single-family homes on Oahu is
$790,000, a 4.6 percent increase from
2017, and $420,000 for condominiums,
a 3.7 percent increase compared to last
year. Sales volume of single-family Oahu
homes decreased 7.7 percent and sales
of Oahu condominiums decreased 2.5
percent in 2018. Inventory of single-
family homes increased by 10.1 percent
and 12.5 percent for condominiums
compared to the previous year, and the
months of inventory on the market
increased slightly for single-family
homes to 2.8 months, and to 2.9 months
for condominiums.
In 2018, Bank of Hawaii continued to make
signif icant investments in our people, policies
and procedures. The following summarizes our
results:
Modernizing Banking
Bank of Hawaii continues to embrace
transformation in order to effectively
respond to digital preferences and
evolving expectations.
One of the ways we are keeping up with
innovation is through our “Branch of
Tomorrow” initiative and off ice
renovations. In 2018, we renovated and
relocated our Pearlridge Branch on Oahu
and refurbished our existing Princeville
Branch on Kauai. In addition to utilizing
photovoltaic solar panels, these projects
incorporate digital enhancements: free
Wi-Fi for customers and employees,
easy-deposit ATMs with Cardless Cash,
digital screens highlighting products and
community news, and tablets for
employees to conduct transactions
anywhere a customer may need help in
the branch.
At our corporate headquarters in
downtown Honolulu, we renovated f ive
floors in 2018. The new open floor plan
encourages forward-thinking
collaboration and expands productivity
among employees by providing
ergonomic workstations and tablets/
laptops in lieu of stationary desktops.
This mobility allows employees to
access information on the go, take
digital notes and collaborate with
colleagues beyond our previous
cubicle-style arrangement. Adopting
this design has allowed us to move
other Oahu-based employees into our
downtown off ice, further reducing our
footprint. Part of this renovation
includes our recently unveiled
penthouse suite of conference rooms,
which houses 13 new technology-
enabled conference rooms, including
our new boardroom.
Enhancing the Customer Experience
The integration of digital technology
with personal interactions delivers
value for our customers. However, we
understand that with change, we must
f irst understand the customer journey
by acknowledging any apprehensions/
concerns before aiming to enhance their
experiences.
At the forefront of digital transformation
is the safety and security of our
customers’ personal information. That is
why we launched debit card Fraud Alerts
in 2018. We review consumer and
business accounts for suspicious
activity and help protect accounts by
immediately alerting customers of
potential fraud on their debit cards
through real-time, two-way texts.
Also in the pipeline is Card Controls,
a mobile-only feature that allows debit
card consumers to manage and monitor
their own transactions. Through our BOH
Mobile Banking app, customers can take
an active role in minimizing fraud with
the ability to switch their debit cards
“on” and “off.” Consumers can also
customize preferences by setting
merchant categories, location regions,
transaction types and spending limits.
SimpliFi Mortgage by Bank of Hawaii®
is another way we are making banking
more secure, convenient and interactive.
Our new online mortgage application
system allows potential borrowers to
complete the entire mortgage
application online, from any mobile
device. Some key capabilities include
uploading documents, the ability to
e-sign, review disclosures and receive
notif ications from loan off icers. We
realize that buying a home, especially for
f irst-time homebuyers, is the biggest
purchase someone will make in their
lifetime, and nothing can replace the
reassurance of that human connection.
While the online process is meant to cut
down on paper and closing times, Bank
of Hawaii still delivers a full banking
experience and peace of mind to
customers, so they may communicate
with our loan off icers in person, on the
phone or via email.
In October, we welcomed our newest
Managing Committee member, Matt
Emerson. With nearly 10 years at the
bank, and 20 in the banking industry,
Matt was promoted to senior executive
vice president and director of
e-commerce. He is now tasked with
identifying new opportunities for digital
conveniences based on evaluating and
researching the customer journey. I look
forward to his leadership, strategic
direction and innovative ideas as we
continue to transform.
BANK OF HAWAII 2018 ANNUAL REPORT | 1
DEAR FELLOW SHAREHOLDERS, C H A I R M A N ’ S M E S S A G E
Making a Difference in Our Community
Sharing time and talents to strengthen
our community is something I have
always been proud of at Bank of Hawaii.
Our employees are generous and active
participants in many causes that are
deeply personal to them. With more
than 166 events and activities in 2018,
our employee volunteers, known as the
Bankoh Blue Crew, gave more than
14,000 hours of their time across the
state of Hawaii, West Pacif ic Region
and American Samoa.
Together, Bank of Hawaii, our foundation,
employees and retirees donated more
than $3.4 million to over 400 community
organizations in 2018. Employees and
retirees alone contributed nearly
$900,000 in 2018, which includes funds
raised for our Live Kōkua Giving Campaign
and our annual Community Walk.
From serving meals to the homeless
every month to cleaning up our beaches
to teaching f inancial literacy, our
employees help ensure our local
communities thrive by showing their
commitment in a variety of ways.
We honor our commitment to the
community by also honoring everyone in
it, without discrimination or prejudice. In
2018, we expanded our diversity efforts
with activities such as sponsoring, and
marching in, the Honolulu Pride Parade
& Festival; volunteering at the Honolulu
Rainbow Film Festival; and supporting
an equality-themed event at the
Honolulu Museum of Art.
For these efforts and more, Bank
Director magazine honored us with
several awards, including “Best Bank”
in the U.S. for our diverse board of
directors. Directors & Boards magazine
also named one of our directors,
Barbara Tanabe, a “2018 Director to
Watch.” With over 20 years and counting
as a board member, we have come to
rely on Barbara’s solid decision-making,
innovative thinking and leadership, and
are blessed to have her 30-plus years
of expertise in our corner.
Nurturing Our Employees
We are undergoing a transformation on
many levels—a physical transformation
of our spaces, a digital transformation
of our products and processes and a
cultural transformation of our working
environment.
In order to prepare the workforce of
today for the workplace of tomorrow,
our employees must f irst be prepared
to continually improve and model the
change that we seek.
We are on a path that educates and
builds skills for our employees in robust
ways. Our latest bankwide training is
called Fostering Workplace Excellence.
Built on the premise that everyone
deserves respect and a safe, trusting
environment at work, three modules
were specially created to encourage
success at work—Diversity and
Inclusion, Harassment Free Workplace,
and Ethics and Ethical Sales. Combined,
we provided over 40,000 hours of
professional development and training
for our employees in 2018.
We continue education programs for our
employees and their families, such as
our Bank of Hawaii College Assistance
Program, which we enhanced for our
employees in 2018. Employees in the
program now receive 100 percent
reimbursement upfront, versus
50 percent at the start of the program
in 2016. We also increased our
reimbursement, which allows employees
to cover the cost of up to eight courses,
plus textbook expenses, compared to
six courses at the start of the program
in 2016. And f inally, CAP participants are
now entitled to one day off with pay to
study for f inals.
We continue helping employees’ children
and grandchildren through our Bank of
Hawaii Foundation Scholarship. Since
2014, more than 151 children and
grandchildren of employees have
received college scholarships totaling
$533,000 from the Bank of Hawaii
Foundation, including 28 in 2018.
Aloha and Mahalo
We welcomed new board members
John C. Erickson and Josh Feldman, who
joined us in January 2019. John, who
serves on our Audit & Risk Committee
and Nominating & Corporate Governance
Committee, worked with Union Bank in
California for 31 years until 2014. He
served over six years as vice chairman,
and also held the positions of chief risk
off icer and chief corporate banking
off icer. He currently serves on the board
of Luther Burbank Corporation, as a
member of its Audit & Risk Committee
and Compensation Committee.
Josh Feldman, president and CEO of
Tori Richard Ltd., a manufacturer,
wholesaler and retailer of resort apparel,
licensed apparel products, private label
clothing and uniforms, serves on our
HR & Compensation Committee and
Nominating & Corporate Governance
Committee. John and Josh are both
well-accomplished businessmen and
I look forward to the contributions they
will bring to Bank of Hawaii.
I would like to recognize Vice Chair Donna
Tanoue, who retired after 17 years with
Bank of Hawaii. As a member of our board
since 2001, and our Managing Committee
since 2002, Donna’s perspective on
issues and close connections to our local
community were truly an asset. Donna
was instrumental in developing our
signature community events—our Live
Kōkua Giving Campaign, Community Walk
and Community Service Day, as well as
the formation of the Bank of Hawaii
Foundation Scholarship.
We also bid a fond farewell to Vincent
Barf ield, who retired after nearly 27 years,
in January 2019. As a member of our
Managing Committee since 2009, he
served in leadership roles in Commercial
Banking, Retail Banking, Trust Services
and, most recently, The Private Bank.
Senior Executive Vice President Kevin
Sakamoto succeeds Vincent and
transitioned to a new role overseeing our
Consumer Segmentation Group, where
he will manage The Private Bank, Trust
Services, International Client Banking,
Bankoh Investment Services Inc. and our
Branch and Community Banking Division.
In Closing
Looking ahead, our value is in the ability
to successfully pivot to deliver even
greater value through targeted
approaches for our diverse customer
base. This vision relies on the ongoing
support of our dedicated employees,
board of directors and shareholders.
I appreciate your support and look
forward to the successes that lie ahead
in 2019.
Mahalo nui loa,
Peter S. Ho
Chairman, President and CEO
2 0 1 8 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
2018
2017
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
Eff iciency Ratio 2
Market Price Per Share of Common Stock:
Closing
High
Low
AS OF DECEMBER 31
Statements of Condition Highlights and Performance Ratios
Loans and Leases
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 and Off ices
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
Eff iciency Ratio 2
$
$
219,602
5.26
5.23
2.34
1.29 %
17.63 %
3.05 %
56.71 %
67.32
89.09
63.64
$ 10,448,774
17,143,974
15,027,242
135,643
1,268,200
30.56
$
$
1.02 %
2,122
69
53,911
1.30
1.30
1.26 %
17.05 %
3.10 %
57.75 %
$
$
184,672
4.37
4.33
2.04
1.10 %
15.27 %
2.93 %
55.66 %
85.70
90.80
74.72
$
9,796,947
17,089,052
14,883,968
260,716
1,231,868
29.05
$
$
1.10 %
2,132
69
42,953
1.02
1.01
1.00 %
13.85 %
2.98 %
57.49 %
1 Net interest margin is def ined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.
2 Eff iciency ratio is def ined as noninterest expense divided by total revenue (net interest income and total noninterest income).
BANK OF HAWAII 2018 ANNUAL REPORT | 3
Y E A R I N R E V I E W
Bank of Hawaii’s Pearlridge Branch celebrated its grand re-opening in January 2018. The relocated and renovated “Branch of Tomorrow” features
an open floor plan, free Wi-Fi for employees and customers and personal consultation rooms.
Banking for a
BE T T ER TOMORR OW
Bank of Hawaii continues to integrate
technology with the f inancial expertise of
our people to allow customers to handle their
f inances whenever and wherever is most
convenient for them. We invest in bringing
the digital and physical banking experiences
together to increase flexibility and provide
value for our shareholders, customers,
employees and community.
Our achievements are a snapshot of how well we are
doing; here are some of our accolades for 2018:
• For the tenth consecutive year, Forbes magazine has
recognized Bank of Hawaii as one of “America’s Best Banks”
in the country.
• Forbes also ranked Bank of Hawaii “Best-In-State.“
• “Best Board” in the U.S. by Bank Director magazine, as well
as in the Western region: the Second Best Bank,
No. 1 Best Corporate Citizen, No. 1 Best Technology Strategy
and No. 2 Best Bank for Millennial Employees
• Among Hawaii’s 13 Best Places to Work, No. 1 Most Family-
Friendly and No. 1 Healthiest employer among large
companies by Hawaii Business magazine
• “Best Bank” by readers of the Honolulu Star-Advertiser,
Honolulu magazine, Hawaii Tribune-Herald and The Garden Isle
• “Best Mortgage” by readers of The Garden Isle
ENHANCING BANKING EXPERIENCES
THROUGH TECHNOLOGY AND SERVICE
Our focus is on keeping our services
meaningful and intuitive, whether
through our mobile banking app, online,
by phone, ATM or in our branches. That
involves providing the best service,
advice and products to guide our
customers toward living the life of their
dreams, and in continually upgrading
technology to streamline access in
ways that work best for them. Whether
visiting one of our branches, our online
and mobile platforms or our easy-
deposit ATMs, getting expert f inancial
advice and services are now easier
than ever.
Branch and Community Banking
Two branches were transformed in
2018 to reflect our “Branch of
Tomorrow” concept. Our relocated
Pearlridge Branch on Oahu opened in
January, and our modernized
Princeville Branch on Kauai, which
opened in December, is our seventh
“Branch of Tomorrow.” Each branch
transformation has its own unique
charm and integrates technological and
energy-eff icient enhancements with
modern design. The initiative began
with our Pearl City Branch in November
2016, followed by our Hawaii Kai, Kihei,
Main and Mānoa branches.
We look forward to continuing to
address the changing banking habits of
today’s customers through this modern
design, with more branch
transformations planned throughout
2019. In addition, plans were
announced to construct a new branch/
off ice building in Tamuning, Guam to
serve as our West Pacif ic regional
headquarters. The building will include
energy-eff icient features, such as
multi-zone air conditioning and light
sensors, and construction is
anticipated to be completed in 2020.
Bank of Hawaii is committed to
reducing energy consumption, and has
made this an integral part of
modernizing our branches and other
locations. Currently, 14 facilities have
solar installations. Solar power plus
other energy conservation tactics,
such as building management systems
that optimize ventilation, lighting and
power systems, have reduced our
overall energy consumption by 15
percent. Bank of Hawaii is also
considering energy storage systems
for the future to help us get to net zero
energy usage.
Modernizing Our Workplace
Our commitment to innovative
workspaces extends to all of our
facilities. At our branches, new break
rooms and large-screen LED monitors
allow employees to attend meetings
and training sessions online.
Our corporate headquarters on Oahu,
at Financial Plaza of the Pacif ic,
is currently undergoing renovations.
Five floors were renovated in 2018,
and the entire project is scheduled
to be completed by 2020.
In addition to energy conservation
strategies like high performance
window tinting, LED lighting and high
eff iciency air conditioning systems,
other features have been designed for
the way employees work today. The
penthouse is being transformed to
include 13 conference rooms for use
by employees. Individual workstations
on other floors incorporate ergonomic
features, including sit-stand desks,
and desktop computers are being
converted to laptops or tablets to
promote mobility. All of these
enhancements and more create an
open, comfortable and collaborative
off ice environment.
Digital Banking Solutions
Digital banking upgrades offer
customers more choices and improve
their experiences while protecting their
data. These upgrades require a large
investment in time and other resources
for both customer-facing and behind-
the-scenes technology, and sometimes
take years of testing before
implementation.
To provide our customers with
secure online access, Bank of Hawaii
continually upgrades its systems.
Our most recent customer-facing
technology enhancement was
to add an additional layer of security
to consumer and business debit cards.
To help minimize fraud, Bank of Hawaii
launched debit card Fraud Alerts.
Cardholders are alerted to suspicious
activities on their debit cards through
real-time, two-way texts, which have
the potential to help them reduce or
stop further f inancial loss.
Mortgage, Consumer and Dealer
Indirect Lending
Because buying or constructing a new
home, and utilizing that equity, are
cornerstones for people to build better
futures, we continue to invest in
making the process of obtaining a
mortgage or ref inancing as easy and
accessible as possible. Technological
enhancements have also made the
lending process quicker and more
eff icient. In 2018, we launched a new
and secure online mortgage application
called SimpliFi Mortgage by Bank of
Hawaii®, which uses the latest software
to allow borrowers to complete a digital
application, upload documents, read
disclosures, check its status 24/7, and
more, from any mobile device.
Bank of Hawaii remains Hawaii’s No. 1
residential lender for the sixth year in a
row, in both number of residential loans
recorded and total dollars loaned in
2018. We are also the top home equity
lender in the state. We’ve accomplished
this by providing the best solutions to
meet our customers’ unique needs. The
process has never been easier with our
extensive branch network, professional
experts and 24/7 Call Center.
Mortgage lending in Guam has also
reached a new high in 2018, both in
number of residential loans recorded
and total dollars loaned.
Our flexible, eff icient auto loan
servicing, which is all handled locally,
helps us grow our partnerships with
Hawaii auto dealers. We continue to be
the No. 2 auto lender in the state of
Hawaii, and our combined auto loan and
leasing portfolios grew to more than
$730 million in 2018.
BANK OF HAWAII 2018 ANNUAL REPORT | 5
Y E A R I N R E V I E W
THE PRIVATE BANK
The Private Bank at Bank of Hawaii
provides personalized wealth
management services through every
life cycle stage. The expanded array
of tailored services include customized
lending; investments; insurance;
f inancial, estate and tax planning;
charitable giving and trust services in
addition to basic banking. With new
technology and increased collaboration
with partners across the bank to
enhance client offerings, The Private
Bank team is a trusted ally in
anticipating and meeting the complex
and unique needs of high-value clients.
Some of the tailored services and
products for The Private Bank clients in
2018 included specialized pricing, line
limits and loan-to-value ratios for home
equity loans. And when the largest tax
reform in decades went into effect, our
Private Bank team responded to
clients’ questions by presenting tax
seminars across the state.
Bank of Hawaii signed a unique
agreement with SMBC Trust Bank in
Japan in May 2018 to provide access
to select private banking services for
Japan clients entering Hawaii. Bank of
Hawaii now offers SMBC Trust Bank’s
Japanese clientele enhanced personal
services, including access to Bank of
Hawaii’s Japanese-speaking private
banking staff and to its trust and real
estate specialists. Benef its of the
agreement also include discounted wire
transfer services, seminar offerings
and development of other products and
services, such as trust planning, loan
and real estate solutions. In return,
SMBC Trust Bank now assists Bank of
Hawaii Private Bank clients seeking
special banking services in Japan.
Trust, Estate and Financial Planning
The Private Bank team creates a
personalized plan to help each client
meet his or her immediate and
long-term f inancial goals, offering
guidance in analyzing assets and
tax implications, and investment
opportunities to optimize returns.
In 2018, we provided estate planning
seminars to clients in Guam. Through
Guam Private Banking, our clients are
able to access Hawaii-based wealth
management solutions.
We also help individuals ensure that a
legacy is preserved, protected and
transferred to the people and
institutions of their choice. As part
of this planning process, we offer
personalized planning and advice for
heirs in future generations so that they
can continue a legacy in the way that is
most fulf illing for them. For example,
we can help with business development
advice for an heir who may want to
expand a family business in a new
direction in the future.
As the largest administrator of trusts
in the state with nearly $2 billion in
assets under management, Bank of
Hawaii has the depth of expertise
necessary to handle every aspect of
our clients’ trust accounts.
Taking care of our kupuna is an
important part of our island culture, but
f inding the right services can be very
time-consuming. A new service
launched on The Private Bank section
of our website identif ies elder care
resources by location. From f inding a
ride to a medical appointment or
grocery shopping to help with
downsizing, information is available to
help meet the needs of seniors and
provide peace of mind for those who
care for them.
Estate settlement can take up to two
years to complete, and our assistance
to heirs during this process continues
to be well-received. In addition to
having a dedicated trust settlement
team in place for Private Bank clients,
we also provide education and support
to other clients through our branch
network whenever there’s a death in a
family.
One of our services includes setting up
and administering nonprof it
foundations to preserve legacies. Many
of these nonprof its distribute grants,
and our Charitable Foundation Services
group is responsible for overseeing
grant requests, reviews and
distributions. Through leveraging
technology, grant applicants may apply
online for grants from organizations
utilizing our Grant Administration
services. Charitable Foundation
Services simplif ies the foundation
administration process for our clients.
Above: Bank of Hawaii’s Pearlridge Branch
has been serving the f inancial needs of our
customers in Aiea for 45 years.
Commercial Real Estate Lending
Our support for Aloha United Way’s
ALICE (Asset Limited Income
Constrained, Employed) Report is
helping us to sharpen our focus on
how best to help meet the need for
affordable housing. Across Hawaii
and the Western Pacif ic, our team
continues to partner with developers
to f inance affordable and workforce
housing options for families and
individuals as well as address housing
needs for the elderly and those with
special needs. Almost 650 affordable
housing units commenced or
completed construction in 2018,
thanks in part to Bank of Hawaii.
The bank helped f inance 82 units of
affordable housing for Maui seniors at
Kahului Lani-Phase I, developed by
Catholic Charities Housing
Development Corp. The bank also
supported an additional 75 units for the
elderly at Phase III of Meheula Vista in
Mililani on Oahu and 48 units for
families at Artridge Village, Saipan,
through investments.
With 876 units in the pipeline for 2019,
Bank of Hawaii remains actively
committed to looking for new
opportunities to partner with
developers to meet the community’s
long-term needs for affordable
housing.
Bank of Hawaii continues to lead in
serving Hawaii’s captive insurance
industry, and has been providing a
comprehensive range of banking and
investment services to presently more
than 90 diverse captive clients since
the industry f irst formed in Hawaii.
Our Captive Insurance Services team
continues to strongly support the
Hawaii domicile, as it has done since
its inception in 1986. The team helps
businesses identify the right insurance
professionals to conduct the detailed
analysis necessary to determine if
owners and operators are suited for,
and will likely benef it from, captive
insurance. Once a captive is licensed,
Bank of Hawaii helps in evaluating the
business’s current risk and f inancing
structures, and in developing prudent
portfolio routes for current and future
reserve investments. As clients’
insurance reserve portfolios grow
and risks are well-managed, their
core capital can allow for increased
insurance coverage options, improved
internal corporate cash flow, further
portfolio diversif ication and ongoing
sound total risk and expense
management. Previously, captives
were the purview of predominantly
Fortune 500-sized companies, but
more recently businesses from a wide
range of sizes and industries are using
captives, including a growing number
of Hawaii-based corporations. Bank of
Hawaii currently oversees more than
$1 billion in investment assets and
deposits for Hawaii domiciled captives.
Business Banking
In 2018, Bank of Hawaii earned the U.S.
Small Business Administration’s HEDCO
(Hawaii Economic Development
Corporation) Award, for recording
10 SBA loans processed through the
504 Loan Program. We are proud to
have achieved this award.
Our bankers understand the unique
challenges of doing business in Hawaii.
Whether it’s f inding the best merchant
services or storefront lease option,
or helping a customer apply for an
SBA or Hawaii Green Energy Market
Securitization Program loan, Bank of
Hawaii is helping small businesses
succeed and grow.
Bank of Hawaii f inished renovations to its Princeville Branch on Kauai in December 2018.
Above are Princeville employees Pam Alaibilla, Donna Sharma, Brandon Sassone, Agnes Haohao
and Shay Palmeira.
Investment and Insurance Services
Bank of Hawaii continues to be the
premiere provider of f iduciary and
investment services in Hawaii and the
Pacif ic. Our trusted team of certif ied
f inancial planners (CFP) and certif ied
f inancial analysts (CFA) manages
almost $9.8 billion in assets through a
wide array of advisory and broker
services.
The recent increase in the short-term
interest rate environment presented an
opportunity to introduce a new “Pacif ic
Capital U.S. Government Money Market
Fund” to commercial customers who
can benef it from higher returns for
excess deposits in sweep accounts.
This is only one of our broadened
investment options. A number of
different deposit, interest-bearing
instruments and ultra-short-term
money market funds and f ixed
annuities are now available to meet our
clients’ short-term liquidity and longer
term investment needs as we go
through the current phase of the rate
change cycle.
In 2018, Bankoh Investment Services
Inc. (BISI) expanded their insurance
capabilities to include disability
insurance options to help protect
clients who are in the crucial earning
stages of their wealth management life
cycle. This was added to the already
robust suite of life insurance products,
including term, whole life, universal
and LTC hybrid policies successfully
launched in 2017. With more than 20
different product solutions from nine
well-respected and vetted insurance
carriers, our f inancial advisors are able
to help clients shop the market for
comprehensive and competitive
options to meet their f inancial needs.
BANKING FOR BUSINESS
Bank of Hawaii understands the unique
needs of doing business in Hawaii.
It has been helping businesses of all
sizes grow for generations. From small,
family-owned businesses to
corporations, from local healthcare
and legal practices to international
businesses, we have the expertise and
products to help them all succeed.
Commercial/Corporate Banking
The deep f inancial knowledge of our
commercial and corporate bankers
combined with their keen
understanding of the market allow
them to come up with competitive
solutions for our clients. The team is
highly experienced in working with
many different industries and works
closely with other f inancial services
experts across the bank to help
provide tailored strategies and
recommendations for a broad range
of needs, including real estate and
construction loans, liquidity
management and equipment f inancing.
We have established a reputation
as the f inancial partner of choice in
several areas, including commercial
real estate and captive insurance.
In 2018, we continued to be the largest
commercial mortgage lender in the
state of Hawaii. One example is our
$50 million f inancing of Waihonu Solar
Farm, Oahu’s largest active solar farm.
Our team f inds customized f inancial
solutions for owners, developers and
investors with multi-family, retail,
industrial, off ice and mixed-use
properties.
BANK OF HAWAII 2018 ANNUAL REPORT | 7
O U R C O M M U N I T Y
Bank of Hawaii,
its Foundation and employees
contributed approximately
$3,470,000
IN 2018 TO
400 ORGANIZATIONS
COMING TOGETHER For a Better Community
We care about helping everyone in our community build a better
future. For almost half of our residents, Hawaii’s high cost of living
continues to keep many dreams out of reach. In order to understand
f inancial hardship in Hawaii, and to be able to channel resources
to assist, Bank of Hawaii was pleased to partner with Hawai‘i
Community Foundation and Kamehameha Schools to help fund
the research and publication of Aloha United Way’s ALICE Report.
(ALICE stands for Asset Limited, Income Constrained, Employed.)
This is only one example of our commitment to the community. Whether
through sponsorships of important programs, funding affordable housing
projects, hands-on partnerships of our Bankoh Blue Crew volunteers with
local nonprof its or raising funds to support organizations in accomplishing
their vision, providing support is part of our DNA. We’ve been helping the
community for more than 120 years, and we’re committed to f inding new
ways to make a difference.
Our community support in 2018 reflected the wide range of interests of
our employees and the needs of our community. On the following pages
are three examples.
• TOTAL EMPLOYEE GIVING
MORE THAN $7 million
since 2007 to more than
400 local nonprof its
• Community Walk 2018
$138,043
12 nonprof its
including neighbor islands
and Guam
• Giving Campaign 2018
$760,132
23 nonprof its
• Volunteerism
14,318 hours
166 events
LIVE KŌKUA
At left: On June 2, more than 600 bank
employees, family and friends gathered
at the Hawaii Convention Center for the
12th annual Live Kōkua Community Walk
on Oahu to benef it Helping Hands Hawai‘i,
Honolulu Theatre for Youth and Women’s
Fund of Hawai‘i.
Above, clockwise: BOH employees
Shilla Lee and Walter Villalba march in
the 2018 Honolulu Pride Parade & Festival
in October.
BOH employee David Kedzie was one
of many flagbearers during the parade.
BOH employees at an equality-themed
event hosted by the Honolulu Museum of
Art. From left: Chris Acacio, Elyse Rosen,
Leonardo Hartomo, Kanani Thon, Kristen
Konishi, Joy Ishiara and Momi Akimseu.
BOH employees Justin Prestidge (far left)
and Andy Downes (far right) present
a $10,000 check to PRIDE Planning
Committee members Joe Bock and
Jim Miller (center).
B A N K O F H AWA I I F O U N D AT I O N G R A N T S & S P O N S O R S H I P S
S U P P O R T I N G D I V E R S I T Y A N D I N C L U S I O N
Bank of Hawaii recognizes that our diversity makes us stronger and is essential to our
ability to serve our clients, fulf ill our purpose and drive responsible growth. We also
recognize the potential of every employee by actively encouraging a diverse and inclusive
workplace — in thought, style, sexual orientation, gender identity, race, ethnicity,
disability, culture and experience.
During Pride Month, we celebrated the impact LGBTQ+ individuals have had on our company and
the communities we serve by sponsoring the Honolulu Pride Parade & Festival, in which 300 bank
employees, family and friends marched along with the bank’s float. The Honolulu Pride Parade &
Festival is Hawaii’s largest LGBTQ event, a culmination of two weeks of festivities for the LGBTQ
community, friends, families and allies.
In addition, the bank continued its sponsorship of the annual Honolulu Rainbow Film Festival (HRFF),
which promotes LGBTQ equality by creating, sharing and protecting LGBTQ stories for the screen.
In August, the bank sponsored an equality-themed event at the Honolulu Museum of Art, complete
with giant #PRIDE letters.
The bank’s diverse and inclusive workplace has always been a key part of its success and makes us
better at what we do.
BANK OF HAWAII 2018 ANNUAL REPORT | 9
O U R C O M M U N I T Y
L I V E K Ō K U A V O L U N T E E R P R O G R A M
S U P P O R T I N G S U S T A I N A B I L I T Y
Caring for our island environment while moving forward in a sustainable way so that people and nature can
thrive is important to the bank, to our customers and to our employees. Not only does Bank of Hawaii
implement energy eff iciencies in its facilities, but our Bankoh Blue Crew volunteers regularly partner in
activities to improve the environment. In 2018, two of these Live Kōkua community service projects inspired a
big turnout of employees who made a positive impact.
In June, more than 110 BOH volunteers were joined by Hawaiian Airlines employees for a day of community work at Paepae
o He‘eia Fishpond. From building up the f ishpond walls to weeding invasive mangroves, the volunteers worked to preserve
the 800-year-old f ishpond so it can be used and sustained for another 800 years.
In September, more than 930 volunteers from Bank of Hawaii, Hawaiian Airlines, Sustainable Coastlines Hawaii and other
local nonprof its partnered to sift out micro-plastics from beach sand, and cleaned debris from miles of beaches and canals
along the Waimanalo coastline of Oahu. Bank of Hawaii’s 13th annual Community Service Day was the biggest community
service project in the program’s history, including employees, families and friends across the state and West Pacif ic
Region, who participated in coastal cleanup initiatives in their areas. Together, 6,240 pounds of trash, debris and
micro-plastics were removed from the shorelines.
Bankoh Blue Crew volunteers are out in the community almost every weekend, and donated more than 14,000 hours
of their time to 166 community service projects in 2018.
Above, clockwise: Bank of Hawaii and Hawaiian Airlines employees gather for a day of community work at Paepae o He‘eia Fishpond in June.
BOH employees sift micro-plastics at Waimanalo. From left: Kainoa McDonald, Elliott Khlopin, Joan Pagaragan, Tayler Higgins, Samson Dang,
Julie Li, Reggie Lo and Michael Chapman. Volunteers create an assembly line to help build the f ishpond wall at Paepae o He‘eia.
2 0 1 8 F I N A N C I A L E D U C AT I O N / C O M M U N I T Y R E I N V E S T M E N T A C T (C R A )
M E N T O R I N G S T U D E N T S A T C E N T R A L M I D D L E S C H O O L
For one week in June, 26 BOH employees helped prepare for the implementation of a unique online f inancial
education program, which Bank of Hawaii made available to eighth-grade students at Central Middle School.
The bank partnered with EVERFI, an innovative education technology company, to provide a nine module
f inancial education program with interactive lessons that covers the basics of budgeting and saving,
as well as how to manage money while in college and beyond.
In preparation for the upcoming lessons, BOH volunteers helped set up new Chromebooks at Central Middle School
for the students and introduced the EVERFI lesson plans. Bank of Hawaii also made this digital learning experience
available to students at McKinley and Kaimuki high schools.
In 2018, BOH employees volunteered more than 6,500 hours to provide f inancial education outreach to students in
elementary, middle school and high school classrooms across Hawaii and the Western Pacif ic, plus time served on nonprof it
boards. Providing customized f inancial education is one of the many ways that we focus our efforts to meet the community
development needs in the places we serve, earning us an “outstanding” rating in consecutive CRA evaluations from the
Federal Reserve Board since 1997.
Above, clockwise: BOH employee Leighton Genobia helps a fourth-grade student through a f inancial lesson at Princess Kaiulani Elementary
on Teach Children to Save Day. BOH employees Barbara McKay, Debbie Crowell, Mike Wu, Mike Matthew Keller and Nicoelle Marciel prep
Chromebooks at Central Middle School. BOH employees Rita Jugo (far left) and Brian Bliss (far right) take a group photo with their class at J.Q.
San Miguel Elementary School in Guam after their Teach Children to Save Day f inancial lesson. Nearly 200 Chromebooks ready to be prepped.
BANK OF HAWAII 2018 ANNUAL REPORT | 11
O U R E M P L O Y E E S
Above: A modern workforce needs a modern workplace. Bank of Hawaii is renovating its downtown Honolulu headquarters, where renovations
of all 21 floors will feature open floor plans, collaborative spaces, charging stations, corporate WiFi and laptops and tablets to promote easy
collaboration and mobility. Above, corporate trainer Karen Block (center) of People Services leads an informational session to (clockwise)
Hayley Musashi, Chris Acacio, Kristen Konishi and Chris Bland on the bank’s refreshed Performance Management Process, called
Let’s Talk Story, in which employees and managers have open discussions about goals, career aspirations and development opportunities.
EMPOWERING EMPLOYEES for a Better Future
Bank of Hawaii continues to take a leading role in keeping up with today’s rapidly changing
environment. This commitment goes beyond investing in emerging technology and modern branches.
It involves investing in our people, and in a work culture that’s in tune with how people live and work
today and into the future. That’s because Bank of Hawaii has always recognized that investing in the
success of our people is the key to the future success of our business, our customers and our
community.
We’re proud that, once again, Bank of Hawaii was voted as one of Hawaii’s “Best Places to Work” in 2018.
A more relaxed dress code, birthdays off, college scholarships for children and grandchildren, family-friendly
celebrations, free gym classes and free access to its three Oahu f itness centers are some of the reasons that
the bank earned top recognition as the healthiest and most family-friendly among large companies.
Bank of Hawaii recognizes that a
diverse and inclusive workforce
fosters an environment where
everyone can thrive and feel valued
and respected. That’s why we have
always supported the unique talents
and diverse backgrounds of our team
members. In 2018, Bank of Hawaii
continued to promote inclusiveness in
the workplace with several programs,
including a new bankwide training
series called Fostering Workplace
Excellence. The training addressed
the topics of Diversity and Inclusion,
Harassment Free Workplace, and
Ethics and Ethical Sales, and aligned
to Bank of Hawaii’s core values of
excellence, integrity, respect,
innovation, commitment and
teamwork.
Bank of Hawaii believes in the power
of education to transform lives.
One of the bank’s biggest ongoing
investments is in the personal and
professional development of its
people. With today’s lightning-paced
changes in f inancial services, the
bank’s leadership, skills and
management training offer employees
not only the opportunity to stay up to
date on evolving trends, but also
enable them to be more effective
when working with clients and with
each other. In 2018, more than 40,000
hours of training was provided by
Bank of Hawaii.
Bank of Hawaii is committed to helping
people develop their talent and
potential beyond their job descriptions,
and for future generations. Since
2014, more than 151 children and
grandchildren of employees have
received college scholarships totaling
$533,000 from the Bank of Hawaii
Foundation, including 28 in 2018.
Bank of Hawaii’s College Assistance
Program (CAP) was introduced in
August 2016 to provide employees
without a bachelor’s degree a way to
start on their own path to a college
education. In partnership with
Chaminade University of Honolulu,
the degree offers employees the
opportunity to choose from select
majors outside of their current job
description. In October 2018,
37 employees were enrolled for the
fall term. We continue to support the
f inancial needs of CAP participants,
and in 2018, launched three new
enhancements: 100 percent
reimbursement upfront, versus
50 percent paid at the beginning of
the term; increased reimbursement
to cover up to eight courses plus
textbook expenses versus six
at the start of the program, and a
brand-new perk of one paid day off
to focus on f inals.
As the banking industry evolves, Bank
of Hawaii continues to invest in the
immediate and long-term success and
wellbeing of its people. Professional
and personal growth opportunities
through education and training are just
one part of being on the leading edge
of Bank of Hawaii’s workforce of
tomorrow.
By the Numbers (Since 2010)
SUMMER INTERN PROGRAM
Eight-week program is designed
to attract and develop emerging talent.
BANK ASSOCIATES PROGRAM
Six-month program aimed at developing
recent college graduates for banking roles.
3,446
total applicants
3,467
total applicants
191
total college
interns
60
colleges
80
total Bank
Associates
35
colleges
represented
PATHWAYS TO PROFESSIONAL
EXCELLENCE PROGRAM
Six-month development program
provides employees with an overview
of the bank, exposure to each
business segment and development
on how to be an effective leader
203
total participants
22
development
sessions
23
states
represented
17,190
hours
of training
80,000
hours of training
more than
40,000
hours of training
BANK OF HAWAII 2018 ANNUAL REPORT | 13
P R O F I L E : T H E P R I V A T E B A N K C L I E N T
Marilyn Carlsmith
Marilyn Carlsmith: I am a practicing
vegan. Climate change is the most
important issue of our time; it’s an
existential threat to us and our way
of life on the earth. Eating animals
also results in the cruelty of
industrial animal farming and chronic
health problems for those who eat
them.
I have been a client of Bank of Hawaii
for over 50 years. After so many
years, the bank knows me well
enough to understand what I’m doing.
If I ask Bank of Hawaii to make sure
that none of my investments are in
petrochemical stocks, they respect
my request, no rolled eyes.
Rachel Carson f irst awakened
my interest in caring for the
environment. I vividly remember lying
on my bed in Hilo and reading her
Silent Spring when it f irst came out.
That alerted me to what we were
doing to the environment, even
beyond DDT.
I have grandchildren and I fear what
their world is going to be like when
they are 80. If everybody were
concerned about their impact on
climate we wouldn’t have the problem
we now have with climate change. If
everybody were vegan we wouldn’t
have the greenhouse gases from
cutting down forests to make
pastures, and all the emissions from
animal husbandry practices. Of
course, everybody isn’t going to
become vegan. So many people are
in denial, but if you care about your
grandkids, you just can’t be.
Bank of Hawaii is supportive
of everything I’m trying to do.
They helped with f inancing the
photovoltaics on my rooftop and the
expansion of my Tantalus home.
For instance, in order to install the
photovoltaics I needed to do it before
the end of the tax year, so I could
take advantage of tax credits. The
bank was very helpful in making the
necessary capital available when
I needed it, and then I paid it back
when I received the tax credits.
I see my f inancial advisors at the
bank and talk to them more often
now than I ever did in the past.
Cori Weston and her staff have
become friends. Their service is very
personal, very responsive, very
sensitive. They also ask questions
and give advice when they should.
They think of little things to make
it easy to do business. When I need
to handle some of my f inances, all
I need to do is pick up the phone
and talk to Cori Weston and her team,
and it is done.
Bank of Hawaii is supporting me by
making banking easier. They are
freeing me up to do what I think is
important in the world. I like to check
my account balance online, and I’ve
set up a lot of payments as direct
deposits so that everything is taken
care of when I’m traveling.
Bank of Hawaii has been here so
long, it has a history and knowledge
of the past and understands the
flavor of Hawaii. It is an important
part of the community, supporting
so many good causes, and that’s
essential for a community.
Having lived here for almost 80
years, I’ve seen huge changes that
have come about both with the
influx in population and with the
environment. It’s really good to have
an old, local established company
that does such a good job, that you
can rely on and provides such good
service. It’s pono in Hawaii; it’s as it
should be.
Marilyn Carlsmith with her poodle KonaKai in their energy eff icient Tantalus home.
BANK OF HAWAII 2018 ANNUAL REPORT | 15
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 S
Garrett Marrero AND Melanie Oxley
M A U I B R E W I N G C O M P A N Y
Garrett Marrero: Maui Brewing
Company is the f irst brewery making
craft beers on Maui to succeed.
We’ve been growing exponentially
since our start in 2005 in our Kahana
location when we took over a
functioning brew house in a
restaurant. Our Waikiki location
opened in February 2017, and we
completed our third expansion at our
Kihei facilities in February 2018.
Most recently we opened our fourth
location in Kailua on Oahu.
We are proud of the partnerships
we’ve built with local retailers as well.
We sell a little over 80 percent of our
beer here in Hawaii. In 2005, we
produced 320 barrels of beer; in 2018,
we produced about 55,000 barrels.
One barrel in the U.S. is 31 gallons.
Our simple vision was to make
authentic, local, high-quality
Hawaiian craft beer using a lot of
local agriculture, whether that be
fruits or spices. The reason we’ve
become the biggest brewery in the
islands is that we weren’t willing to
compromise our vision. We weren’t
willing to yield local production; we
wanted to build local jobs. Investing
in the community, being good
neighbors, supporting philanthropic
pursuits are all part of who we are as
a company.
Melanie Oxley: We have found it
incredibly important that our bank
understands our business. The craft
brewing industry was small when our
company started, and with that came
uncertainty, and possible risk. Our
commercial banking off icers have
continually made it a point to not just
understand what we do, but
understand what is going on in our
markets globally.
Bank of Hawaii has been a critical
player in helping to facilitate our
growth by securing f inancing
necessary for our brewery projects,
and some of the restaurant projects.
With growth has come eff iciencies
and higher revenues that have
allowed us to set aggressive
sustainability goals. The successes
allow us the opportunity to increase
our employee wages and benef its,
creating a better future for the
company and its people. We aren’t
here just to make a quality beer;
we’re here to make a positive impact
here on our island community.
Garrett: One of our goals is to be a
leader in sustainable manufacturing,
and really lead by example. You can
manufacture in Hawaii, do it
responsibly and still be prof itable.
By leading the charge, we hope to
encourage others to this same
pursuit.
In 2018 we completed the third
expansion of our Kihei site; it’s now
about 82,000 square feet. It has
about 1.2 megawatts of solar power,
3.5 megawatt hours of battery
storage, 600 KW of biodiesel
generators, and CO2 recovery
systems. We’ll be grid-independent
in 2019.
BOH helped with the entire facility.
One of the lots we bought was REO
from Bank of Hawaii, and we bought
the second lot next door. Bank of
Hawaii f inanced everything from the
ground up. The solar was a
partnership between Bank of Hawaii
and Hawaii’s Green Energy Market
Securitization (GEMS) program.
I value the fact that Bank of Hawaii’s
Maui team and the executive team on
Oahu have our backs. I don’t doubt
for a minute that they believe in
everything that we’re doing, and that
they share our vision. We have a
relationship with all of them that’s
been nurtured over the years.
Melanie: We have not only created
a strong working relationship, but we
feel a real sense of camaraderie. Our
professional and personal banking
relationship with Greg Knue is
wonderful. The care and friendliness
of everyone at the bank—for not just
our business, but also our personal
well-being—is such a pleasure.
Garrett: Melanie and I have worked
very hard to get to where we are
today, but Maui Brewing Company
isn’t about two people. It’s about the
almost 800 people on our team.
We’re always indebted to our
#TeamMBC for living the vision and
helping us grow every day.
And a big nod also goes to Bank of
Hawaii for believing in our ideas;
they’ve done a great job in helping
us grow.
Maui Brewing Company was honored with the national Small Business Administration’s “Persons of the Year” award in 2017.
Left: CEO and co-founder Garrett Marrero and COO and co-founder Melanie Oxley.
BANK OF HAWAII 2018 ANNUAL REPORT | 17
P R O F I L E : C H A R I T A B L E F O U N D A T I O N S C L I E N T
Al Castle
S A M U E L N . A N D M A R Y C A S T L E F O U N D A T I O N
Al Castle: The history of our
relationship with Bank of Hawaii goes
back to the very beginning, as the
Castles were some of the bank’s
original depositors in the 19th
century. The work of our foundation
started in the 1830s, but the entity
wasn’t incorporated until his widow
established it after the death of my
great-great grandfather, Samuel
Northrup Castle, in 1894. Samuel
Castle was a founder of Castle &
Cooke Corporation, which helped
establish the f inancial base for the
foundation’s ongoing philanthropy.
We have used the services of Bank
of Hawaii to help oversee the
foundation’s investments since soon
after it was f irst set up.
My great-great grandmother, Mary
Tenney Castle, came to Hawaii as
Samuel N. Castle’s second wife.
Before coming to Hawaii she fought
for all kinds of social reforms. She
was college educated, an abolitionist,
a suffragette, a temperance
advocate, a feminist and an early-
childhood education reformer.
The foundation’s efforts focus on
creating greater social equality and
opportunity through access to
high-quality early education. In the
early days, that meant access to
kindergarten. As an abolitionist 130
years ago, Mary Castle insisted that
no race or ethnicity should be
factored into the work of the Samuel
N. and Mary Castle Foundation, and
her values and her vision for social
reform still inform our decisions.
Our greatest gift to the people of
Hawaii has been the kindergartens.
The early kindergartens were
intended for all residents of Hawaii,
but had a special impact on Native
Hawaiians and immigrants. The
Castle Kindergartens were always
open to children of all ethnicities.
They were set up on a sliding
payment scale so that the poorest
people paid nothing or very little to
give their children a good start to
their education. To ensure that
Hawaii’s children had the very best
early educational opportunities, the
foundation invested in teacher
training from the very beginning and
still does to this day.
Today, we see a demographic bump
in three-year-olds, and are leveraging
resources to help increase facilities
and training so that good quality
early education for this age group
is more available across the state.
By funding the research and writing
of a grant application in 2015, we
were able to help bring $15 million
in federal funds to Hawaii to add
tuition-free preschools to existing
culturally based charter schools,
especially in rural areas.
We set up the foundation’s off ice in
its current location mainly because
of its close proximity to Bank of
Hawaii. We see the relationship as an
important partnership in helping us
with our mission. The bank has
historically been the chief
investment off icer for the
foundation, managing our f ixed
income and our equity selections.
With only two employees, the
foundation is open seven days a
week so that we can be available
when it’s convenient for the teachers
and directors of the schools we
support. Bank of Hawaii helps us be
cost effective. Carol Tom and her
team oversee all of our f inancial
record keeping, our bill paying and
our annual audit. With their help,
there’s a seamless approach to our
accounting and our work in the public
in making our grants.
I appreciate the bank as a partner.
We’re very grateful to Carol and her
team, and everyone at Bank of
Hawaii. They are easy to work with,
and very smart about what needs to
be done to keep the foundation
operating at an optimal level so that
we can continue to provide high-
quality early education opportunities
to new generations of Hawaii’s
children.
Samuel N. and Mary Castle Foundation Executive Director Al Castle.
BANK OF HAWAII 2018 ANNUAL REPORT | 19
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
Malcolm Yorkston
H A W A I I A N R A I N B O W B E E S L L C
Malcolm Yorkston: Hawaiian Rainbow
Bees is the second largest honey
manufacturer in Hawaii. Our honey
goes straight from the bee to the
bottle.
also developed our lifestyle honey
pouch that you can take anywhere.
It stands up by itself, and is very
convenient for travel, sports and
f itness.
The majority of our honey comes
from about 1,500 hives on the Big
Island. I’m a beekeeper myself, and
have about 50 hives on Oahu.
I originally started this company for
my health. I have severe allergies,
and I had heard that raw honey could
be a natural way to help. Turns out
that raw, minimally treated honey has
three natural enzymes: two aid
digestion, and the other is an
antibacterial.
When I started taking honey, I found
that my allergy symptoms were
mitigated. It was also giving me
energy throughout the day, more
health and more mental clarity.
Honey was really helping me, so I
decided to keep bees.
Today, we sell four different kinds
of honey. We have a multi-floral that
comes from both islands, and we
have macadamia nut, lehua and
Christmas berry honeys that come
from the Big Island.
Our iconic packaging says “aloha”
from Hawaii. With help from a hula
halau, and imagery from the Bishop
Museum, and the “Place of Refuge”
on the Big Island, we developed our
signature tiki bottle. Recently we
I opened my business accounts with
Bank of Hawaii because I found their
lending practices were better for my
business. As I spent more time with
my bank representatives, they got
to know me and became my friends.
Rowena Pingol, Summerset Lovett
and all of the staff at the Mānoa
Branch know me by name and
provide great service.
It’s essential to work with a bank
located here in the islands. My
bankers are working as my partners,
giving me professional support
through their f inancial expertise.
I recently applied for a loan at
Bank of Hawaii to buy my own
business location. We’re renting our
current warehouse location, and it’s
one of the properties that’s in the
path of the rail project. To protect the
company, we purchased a property
in an industrial mixed-use zone, a
two-bedroom home in Kalihi that we
can fall back to, if necessary. Right
now, we’re using it for storage,
housing and income. So we’re saving
money and able to grow.
Matt Luga was my loan off icer for
the mortgage. He was great at
navigating me through the process,
visited properties with me, and
helped me analyze them to see if
they were really going to work.
I see my business growing, and Bank
of Hawaii as an important partner in
that growth. In the f irst four years of
the company we grew from
$100,000 in sales to over $1 million
in sales. To continue growing, my
vision is to look outward and also to
sell more deeply to the local market.
That includes supplying local
bakeries, breweries and smaller
shops, and looking into custom
branding.
We want to make Hawaiian Rainbow
Bees honey, Hawaii’s honey. We’re
doing stronger sales in Japan, and
we’re excited to grow in other places
in Asia by working with Chinese and
Taiwanese distributors. We also want
to move more honey to California and
the West Coast. We have honey in
San Francisco now, and we’re really
close to doing more business
nationally. This is all very exciting.
We have the honey for this
expansion; there are more
beekeepers here who want to work
with us. So, I see we’re all going to
grow, and we’re going to grow with
Bank of Hawaii.
Hawaiian Rainbow Bees LLC owner and founder Malcolm Yorkston. In 2018, the company was recognized as exporter of the year by the
U.S. Small Business Administration for both the state of Hawaii and for District 9, which includes California, Arizona and Nevada.
BANK OF HAWAII 2018 ANNUAL REPORT | 21
2 0 1 8 F I N A N C I A L R E P O R T
C O N S O L I D A T E D S T A T E M E N T S O F I N C O M E
Bank of Hawaii Corporation and Subsidiaries (dollars in thousands, except per-share amounts)
FOR THE YEAR ENDED DECEMBER 31
2018
2017
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
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 (Losses), Net
Annuity and Insurance
Bank-Owned Life Insurance
Other
Total Noninterest Income
Noninterest Expense
Salaries and Benef its
Net Occupancy
Net Equipment
Data Processing
Professional Fees
FDIC Insurance
Other
Total Noninterest Expense
Income Before Provision for Income Taxes
Provision for Income Taxes
$ 410,597
$ 370,441
50,152
84,310
34
3,723
1,357
550,173
41,143
18,519
609
145
3,405
63,821
486,352
13,425
472,927
43,877
8,437
28,811
57,482
(3,938)
5,822
7,199
21,233
168,923
213,208
34,742
23,852
17,846
9,992
7,732
64,252
371,624
270,226
50,624
46,772
81,740
15
3,882
944
503,794
22,332
19,592
123
64
4,445
46,556
457,238
16,900
440,338
45,430
12,949
32,575
54,845
10,430
6,858
6,517
15,813
185,417
203,729
32,536
22,078
15,483
11,681
8,666
63,518
357,691
268,064
83,392
Net Income
$ 219,602
$ 184,672
Basic Earnings Per Share
Diluted Earnings Per Share
Dividends Declared Per Share
Basic Weighted Average Shares
Diluted Weighted Average Shares
5.26
$
5.23
$
$
2.34
41,714,770
41,999,399
4.37
$
4.33
$
$
2.04
42,280,931
42,607,057
Refer to the Company's Annual Report on Form 10-K for the f iscal year ended December 31, 2018 for the
Consolidated Financial Statements, including the related Report of Independent Registered Public Accounting Firm, thereon.
Note: Certain prior period information has been reclassif ied to conform to current presentation.
C O N S O L I D A T E D S T A T E M E N T S O F C O N D I T I O N
Bank of Hawaii Corporation and Subsidiaries (dollars in thousands)
AS OF DECEMBER 31
2018
2017
ASSETS
Interest-Bearing Deposits in Other Banks
Funds Sold
Investment Securities
Available-for-Sale
Held-to-Maturity (Fair Value of $3,413,994 and $3,894,121)
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
Short-Term Borrowings
Securities Sold Under Agreements to Repurchase
Other Debt
Retirement Benef its Payable
Accrued Interest Payable
Taxes Payable and Deferred Taxes
Other Liabilities
Total Liabilities
$
3,028
198,860
$
3,421
181,413
2,007,942
3,482,092
10,987
10,448,774
(106,693)
10,342,081
16,044,990
324,081
151,837
51,230
1,356
24,310
31,517
283,771
230,882
17,143,974
$
$ 4,739,596
3,002,925
5,539,199
1,745,522
15,027,242
199
504,296
135,643
40,494
8,253
19,736
139,911
15,875,774
2,232,979
3,928,170
19,231
9,796,947
(107,346)
9,689,601
16,054,815
263,017
130,926
50,485
1,040
24,622
31,517
280,034
252,596
17,089,052
4,724,300
3,082,563
5,389,013
1,688,092
14,883,968
—
505,293
260,716
37,312
6,946
24,009
138,940
15,857,184
$
$
SHAREHOLDERS’ EQUITY
Common Stock ($.01 par value; authorized 500,000,000 shares;
issued / outstanding: December 31, 2018 - 58,063,689 / 41,499,898
and December 31, 2017 - 57,959,074 / 42,401,443)
Capital Surplus
Accumulated Other Comprehensive Loss
Retained Earnings
Treasury Stock, at Cost (Shares: December 31, 2018 - 16,563,791
and December 31, 2017 - 15,557,631)
Total Shareholders’ Equity
Total Liabilities and Shareholders’ Equity
577
571,704
(51,043)
1,641,314
576
561,161
(34,715)
1,512,218
(894,352)
1,268,200
17,143,974
$
(807,372)
1,231,868
17,089,052
$
Refer to the Company's Annual Report on Form 10-K for the f iscal year ended December 31, 2018 for the
Consolidated Financial Statements, including the related Report of Independent Registered Public Accounting Firm, thereon.
BANK OF HAWAII 2018 ANNUAL REPORT | 23
R E L A T I V E S T O C K P R I C E S
R E L A T I V E P R I C E P E R F O R M A N C E
For the Year Ended December 31, 2018
BOH
S&P Banks
KBW Regional Bank Index
S&P 500
$115
$110
$105
$100
$95
$90
$85
$80
$75
MARCH 31
JUNE 30
SEPTEMBER 30
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
Bank of Hawaii Corporation
RECESSION
RECESSION
FINANCIAL CRISES
Historical dividends adjusted for stock splits
$2.25
$2.00
$1.75
$1.50
$1.25
$1.00
$0.75
$0.50
$0.25
$0.00
1988
1993
1998
2003
2008
2013
2018
B A N K O F H A W A I I L O C A T I O N S / E C O N O M I C I N F O R M A T I O N
FA C T S : H AWA I I , W E S T PA C I F I C R E G I O N A N D A M E R I C A N S A M O A
H AWA I I
Hawaii business establishments in 2017: 98.1 percent have fewer
than 100 employees, 95.2 percent have fewer than 50 employees,
and 57.3 percent have fewer than f ive employees.1
Hawaii gross domestic product in 2017: $88.4 billion (in current dollars)2
19.9% Government (federal civilian & military, and state and local)
20.3% Real estate, rental and leasing
8.8% Accommodation and food services
6.6% Retail trade
6.7% Health care and social assistance
5.9% Construction
5.6%
4.1%
3.3%
Transportation and warehousing
Professional, scientif ic and technical services
Finance and insurance
Tourism’s direct and indirect impact on Hawaii gross domestic product
(in current dollars) in 2017: 16.7%3
B A N K O F H AWA I I
B R A N C H E S A N D AT M S
As of December 31, 2018
B R A N C H E S A N D
I N - S T O R E
B R A N C H E S
State of Hawaii
Island of Oahu
Island of Hawaii
Island of Maui
Island of Kauai
Island of Lanai
Island of Molokai
West Pacif ic
Guam
CNMI/Saipan
Palau
American Samoa
64
36
11
10
5
1
1
4
2
1
1
1
AT M S
338
239
44
31
22
1
1
36
29
4
3
5
State of Hawaii resident population as of July 1, 2017: 1,420,4914
Total
69
379
G U A M
- U.S. Territory
- Capital: Hagatna
- Resident population: July 2018 estimate 167,7725
- Main industries: U.S. military and tourism
C O M M O N W E A LT H O F T H E N O R T H E R N M A R I A N A I S L A N D S
- Commonwealth in political union with the U.S.
- Capital: Saipan
- Resident population: July 2018 estimate 51,9945
- Main industries: tourism, banking, construction, f ishing, handicrafts
PA L A U
- Constitutional government in free association with the U.S.
- Capital: Melekeok
- Resident population: July 2018 estimate 21,5165
- Main industries: tourism, f ishing, subsistence agriculture
A M E R I C A N S A M O A
- U.S. Territory
- Capital: Pago Pago
- Resident population: July 2018 estimate 50,8265
- Main industries: tuna canneries and handicrafts
1 Hawaii Department of Labor & Industrial Relations,
2017 Employment and Payrolls in Hawaii: https://
www.hiwi.org/admin/gsipub/htmlarea/uploads/
LFR_QCEW_ES17FIRM.pdf
2 Hawaii DBEDT State of Hawaii Data Book 2017, Table
13.05, http://f iles.hawaii.gov/dbedt/economic/
databook/2017-individual/13/130517.xls from the
U.S. North American Industry Classif ication
3 Hawaii DBEDT State of Hawaii Data Book 2017,
Tables 7.34, http://f iles.hawaii.gov/dbedt/economic/
databook/2017-individual/07/073417.xls
4 Hawaii DBEDT, Hawaii State Data Center, Latest
Population Estimates Data, 2018 State Population
Estimates http://census.hawaii.gov/whats-new-
releases/2018-state-population-estimates/ and
http://f iles.hawaii.gov/dbedt/census/popestimate/
2018_state_pop_hi/nst-est2018-01.xlsx
5 Central Intelligence Agency (CIA), The World
Factbook: https://www.cia.gov/library/publications/
the-world-factbook/
BANK OF HAWAII 2018 ANNUAL REPORT | 25
M A N A G I N G C O M M I T T E E
B A N K O F H AWA I I C O R P O R AT I O N / B A N K O F H AWA I I (as of Dec. 31, 2018)
Top left photo:
Mary E. Sellers, Peter S. Ho,
Kent T. Lucien and Mark A. Rossi
Top right photo:
Vincent E. Barf ield,
Susan L. Ing, David Oyadomari,
Kevin T. Sakamoto and
Tony Mizuno
Bottom left photo:
Jill F.S. Higa, James C. Polk,
Matthew Emerson and
Wayne Y. Hamano
Bottom right photo:
Dean Y. Shigemura,
Sheh Bertram, Alton T. Kuioka
and Sharon M. Crofts
Peter S. Ho
Chairman, President
and Chief Executive Off icer
Sharon M. Crofts
Vice Chair
Client Solutions Group
Wayne Y. Hamano
Vice Chair
and Chief Commercial Off icer
Alton T. Kuioka
Vice Chair of Board of Directors
of Bank of Hawaii
Kent T. Lucien
Vice Chair
and Chief Strategy Off icer
James C. Polk
Vice Chair
Retail Lending & Deposit Product Group
Mark A. Rossi
Vice Chair, Chief Administrative Off icer,
General Counsel & Corporate Secretary
Mary E. Sellers
Vice Chair
and Chief Risk Off icer
Dean Y. Shigemura
Vice Chair
and Chief Financial Off icer
Vincent E. Barf ield
Senior Executive Vice President
The Private Bank
Sheh Bertram
Senior Executive Vice President
and Chief Information Off icer
Matthew Emerson
Senior Executive Vice President
and Director of E-Commerce
Jill F.S. Higa
Senior Executive Vice President
Branch and Community Banking
Susan L. Ing
Senior Executive Vice President
and Chief Marketing Off icer
Tony Mizuno
Senior Executive Vice President
Commercial Banking Group
David Oyadomari
Senior Executive Vice President
Digital Channels Division
Kevin T. Sakamoto
Senior Executive Vice President
Consumer Banking
BANK OF HAWAII 2018 ANNUAL REPORT | 27
B O A R D O F D I R E C T O R S
Board of Directors (seated, from left): Victor K. Nichols, S. Haunani Apoliona, Peter S. Ho, Mary G.F. Bitterman and Kent T. Lucien.
Standing from left: Robert A. Huret, Alton T. Kuioka, Mark A. Burak, Robert W. Wo, Raymond P. Vara, Alicia E. Moy, Clinton R. Churchill
and Barbara J. Tanabe.
B A N K O F H AWA I I C O R P O R AT I O N / B A N K O F H AWA I I (as of Dec. 31, 2018)
S. Haunani Apoliona*
Former Trustee
Off ice of Hawaiian Affairs
Mary G.F. Bitterman*
President and Director
The Bernard Osher Foundation
Mark A. Burak*
Retired Executive Vice President
Bank of America
Kent T. Lucien*
Vice Chair and Chief Strategy Off icer
Bank of Hawaii Corporation and
Bank of Hawaii
Alicia E. Moy
President and Chief Executive Off icer
of Hawai‘i Gas
Victor K. Nichols*
CEO of Hartland Clarke Holdings
Clinton R. Churchill*
Former Trustee
The Estate of James Campbell
Barbara J. Tanabe*
Owner and Partner
Ho‘akea Communications LLC
Peter S. Ho*
Chairman, President
and Chief Executive Off icer
Bank of Hawaii Corporation
and Bank of Hawaii
Robert A. Huret*
Founding Partner Emeritus,
FTV Capital
Alton T. Kuioka
Vice Chair
Client Relations
Bank of Hawaii
Raymond P. Vara*
President and Chief Executive Off icer
Hawai‘i Pacif ic Health
Robert W. Wo*
Owner and Director
C.S. Wo & Sons, Ltd.
*Bank of Hawaii Corporation Board of Directors
S H A R E H O L D E R I N F O R M A T I O N
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 f inancial 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 f inancial 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”) and the Economic Growth,
Regulatory Relief and Consumer Protection Act of 2018; 5) changes in f iscal 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, including Public Law 115-97, commonly known as the
Tax Cuts and Jobs Act, or the interpretation of such laws and regulations; 10) changes in our
credit quality or risk prof ile 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 or negatively impacting the tourism industry in
Hawaii. Given these risks and uncertainties, investors should not place undue reliance on
forward-looking statements, as a prediction of actual results. 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, 2018, 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 an independent regional f inancial services company
serving businesses, consumers and governments in Hawaii, American Samoa, and the
West Pacif ic. The Company’s principal subsidiary, Bank of Hawaii, was founded in 1897.
For more information about Bank of Hawaii Corporation, see the Company’s website,
www.boh.com.
CORPORATE HEADQUARTERS
Bank of Hawaii Corporation
130 Merchant Street
Honolulu, Hawaii 96813
ANNUAL MEETING
The annual meeting of shareholders will be held
on Friday, April 26, 2019, at 8:30am at the
Bank of Hawaii Main Off ice, 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
f inancial publications as “Bank of Hawaii.”
DIVIDEND REINVESTMENT
& STOCK PURCHASE PLAN (DRP)
Bank of Hawaii Corporation’s 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 f ive
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 certif icates. Fees are
assessed on the sale of shares in the DRP.
Detailed information about Bank of Hawaii
Corporation’s DRP can be found online at www.boh.
com or by calling Computershare Investor Services
LLC at 1-888-660-5443.
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 7:00am and 5:00pm
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
BANK OF HAWAII 2018 ANNUAL REPORT | 29
BANK OF HAWAII CORPORATION
P.O. Box 2900 • Honolulu, Hawaii 96846