Bank of Hawaii Corporation 2012 Financial Results

  Bank of Hawaii Corporation 2012 Financial Results

  *2012 Diluted Earnings Per Share $3.67
  *2012 Net Income $166.1 Million
  *Diluted Earnings Per Share for the Fourth Quarter of 2012 $0.90
  *Net Income for the Fourth Quarter of 2012 $40.3 Million
  *Board of Directors Declares Dividend of $0.45 Per Share

Business Wire

HONOLULU -- January 30, 2013

Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per
share of $0.90 for the fourth quarter of 2012, down from $0.92 per share in
the previous quarter, and up from $0.85 per share in the same quarter last
year. Net income for the fourth quarter of 2012 was $40.3 million, compared to
net income of $41.2 million in the third quarter of 2012 and $39.2 million in
the same quarter last year.

Loan and lease balances were $5.9 billion at December 31, 2012, up 5.7 percent
compared with December 31, 2011. Deposit growth remained strong during the
quarter, increasing 8.8 percent to $11.5 billion at December 31, 2012. The
allowance for loan and lease losses decreased by $2.1 million from the third
quarter to $128.9 million at December 31, 2012 and represents 2.20 percent of
outstanding loans and leases.

“We are very pleased with the continued stability and strength of our
earnings," said Peter S. Ho, Chairman, President, and CEO. “During the quarter
loan balances increased across most categories and deposits continued to grow.
Credit quality remained solid, our balance sheet and capital ratios are
strong, and we maintained our focus on disciplined expense management.”

The return on average assets for the fourth quarter of 2012 was 1.19 percent,
compared with 1.22 percent in the previous quarter and 1.17 percent in the
same quarter last year. The return on average equity for the fourth quarter of
2012 was 15.47 percent, compared with 16.02 percent in the previous quarter
and 15.23 percent in the same quarter last year. The return on average assets
for the full year of 2012 was 1.22 percent, unchanged from 2011. The return on
average equity for the full year of 2012 was 16.23 percent, an increase from
the return on average equity of 15.69 percent in 2011.

Financial Highlights

Net interest income, on a taxable-equivalent basis, for the fourth quarter of
2012 was $92.7 million, down $3.5 million from net interest income of $96.2
million in the third quarter of 2012 and down $4.5 million from net interest
income of $97.2 million in the fourth quarter last year. Net interest income,
on a taxable-equivalent basis, for the full year of 2012 was $386.7 million, a
decrease of $5.6 million from net interest income of $392.3 million in 2011.
Analyses of changes in net interest income are included in Tables 8a, 8b and
8c.

The net interest margin was 2.87 percent for the fourth quarter of 2012, an 11
basis point decrease from the previous quarter and a 17 basis point decrease
from the same quarter last year. The net interest margin for the full year of
2012 was 2.97 percent, a 16 basis point decrease from 3.13 percent in 2011.
The reduction in the net interest margin was largely the result of lower
interest rates which resulted in decreased yields on loans and investments.

During the fourth and third quarters of 2012, the Company did not record a
provision for credit losses. Net loans and leases charged-off were $2.1
million in the fourth quarter of 2012 and $1.5 million in the third quarter of
2012. During the fourth quarter of 2011 the provision for credit losses was
$2.2 million, or $4.8 million less than net charge-offs. The provision for
credit losses for the full year of 2012 was $1.0 million compared with $12.7
million in 2011.

Noninterest income was $53.0 million for the fourth quarter of 2012, up $0.6
million or 1.2 percent compared with noninterest income of $52.4 million in
the third quarter of 2012 and up $9.6 million or 22.1 percent compared with
noninterest income of $43.4 million in the fourth quarter of 2011. The
increase compared with the prior year quarter was largely due to strong
mortgage banking revenue of $11.3 million during the fourth quarter of 2012
compared with $3.4 million in the fourth quarter last year. Noninterest income
for the full year of 2012 was $200.3 million compared with noninterest income
of $197.7 million in 2011.

Noninterest expense was $83.5 million in the fourth quarter of 2012, down $1.4
million or 1.7 percent from noninterest expense of $84.9 million in the third
quarter of 2012, and down $0.9 million or 1.1 percent from noninterest
expenses of $84.4 million in the fourth quarter of 2011. Noninterest expense
in the fourth quarter of 2012 included total charges of $1.5 million related
to the Company’s previously announced plans to close two branches in American
Samoa. Noninterest expense in the third quarter of 2012 included an increase
in profit sharing and incentive accruals of $1.0 million, $1.0 million related
to the launch of a new consumer credit card product, and $1.0 million in
separation expense. There were no significant noninterest expense items in the
fourth quarter of 2011. Noninterest expense for the full year of 2012 was
$334.3 million, down $13.9 million from noninterest expense of $348.2 million
in 2011. Results for 2011 included a second quarter litigation settlement of
$9.0 million.

The efficiency ratio for the fourth quarter of 2012 was 58.24 percent compared
with 58.13 percent in the previous quarter and 60.42 percent in the same
quarter last year. The efficiency ratio for the full year of 2012 was 57.88
percent compared with 59.23 percent during the full year of 2011.

The effective tax rate for the fourth quarter of 2012 was 32.67 percent
compared with 32.55 percent in the previous quarter and 26.06 percent in the
same quarter last year. The effective tax rate for the full year of 2012 was
31.46 percent compared with 29.49 percent for the full year of 2011. The
effective tax rate for the fourth quarter of 2011 was favorably impacted by
the release of tax reserves determined during the quarter.

The Company’s business segments are defined as Retail Banking, Commercial
Banking, Investment Services, and Treasury & Other. Results are determined
based on the Company’s internal financial management reporting process and
organizational structure. Selected financial information for the business
segments is included in Tables 13a and 13b.

Asset Quality

The Company’s overall asset quality in the fourth quarter of 2012 reflects the
improving Hawaii economy. Total non-performing assets decreased to $37.1
million at December 31, 2012 compared with $40.3 million at September 30, 2012
and $40.8 million at December 31, 2011. As a percentage of total loans and
leases, including foreclosed real estate; non-performing assets were 0.63
percent at the end of the fourth quarter of 2012, down from 0.70 percent as of
the end of the third quarter and 0.74 percent at the end of the fourth quarter
last year.

Accruing loans and leases past due 90 days or more were $10.4 million at
December 31, 2012, up from $7.5 million at September 30, 2012 and $9.2 million
at December 30, 2011. The increase in accruing loan and leases past due
compared with the prior quarter is in residential mortgages and are three
loans that are expected to return to current status. Restructured loans not
included in non-accrual loans or accruing loans past due 90 days or more were
$31.8 million at December 31, 2012, up slightly from $31.4 million at
September 30, 2012, and down from $33.7 million at December 31, 2011.
Restructured loans are primarily comprised of residential mortgage loans with
lowered monthly payments to accommodate the borrowers’ financial needs for a
period of time. More information on non-performing assets and accruing loans
and leases past due 90 days or more is presented in Table 11.

Net charge-offs during the fourth quarter of 2012 were $2.1 million or 0.15
percent annualized of total average loans and leases outstanding. Loan and
lease charge-offs of $5.4 million during the quarter were partially offset by
recoveries of $3.3 million. Net charge-offs during the third quarter of 2012
were $1.5 million or 0.10 percent annualized, and were comprised of
charge-offs of $5.0 million and recoveries of $3.5 million. Net charge-offs
during the fourth quarter of 2011 were $7.0 million, or 0.51 percent
annualized, and were comprised of charge-offs of $9.6 million and recoveries
of $2.6 million. Net charge-offs for the full year of 2012 were $10.7 million,
or 0.19 percent of total average loans and leases, down from $21.4 million, or
0.40 percent of total average loans and leases in 2011.

The allowance for loan and lease losses was $128.9 million at December 31,
2012, down $2.1 million from the allowance for loan and lease losses of $131.0
million at September 30, 2012 and down $9.7 million from the allowance for
loan and lease losses of $138.6 million at December 31, 2011. The ratio of the
allowance for loan and lease losses to total loans and leases was 2.20 percent
at December 31, 2012, a decrease of 7 basis points from the previous quarter
and 30 basis points from the same quarter last year. The reserve for unfunded
commitments at December 31, 2012 was unchanged from September 30, 2012 and
remained at $5.4 million. Details of loan and lease charge-offs, recoveries,
and the components of the total reserve for credit losses are summarized in
Table 12.

Other Financial Highlights

Total assets increased to $13.73 billion at December 31, 2012, up $345.9
million from total assets of $13.38 billion at September 30, 2012, and down
$118.0 million from total assets of $13.85 billion at December 31, 2011.
Average total assets were $13.52 billion during the fourth quarter of 2012, up
$25.7 million from average total assets of $13.49 billion during the third
quarter of 2012, and up $158.9 million from average total assets of $13.36
billion during the fourth quarter of 2011.

Total loans and leases grew to $5.85 billion at December 31, 2012, up $72.2
million or 1.2 percent from total loans and leases of $5.78 billion at the end
of the previous quarter, and up $316.2 million or 5.7 percent from total loans
and leases of $5.54 billion at December 31, 2011. Average total loans and
leases were $5.80 billion during the fourth quarter of 2012, up from $5.72
billion during the previous quarter, and up from $5.42 billion during the same
quarter last year. Loan and lease portfolio balances, including the higher
risk loans outstanding, are summarized in Table 10.

Deposit generation continued to remain strong during the fourth quarter of
2012, increasing to $11.53 billion at December 31, 2012, up $308.9 million or
2.8 percent from total deposits of $11.22 billion at September 30, 2012, and
up $936.9 million or 8.8 percent from total deposits of $10.59 billion at
December 31, 2011. Securities sold under agreements to repurchase were $758.9
million at December 31, 2012, down $59.1 million from $818.1 million at
September 30, 2012, and down $1.17 billion from $1.93 billion at December 31,
2011. Average total deposits were $11.38 billion in the fourth quarter of
2012, higher than average deposits of $11.30 billion during the previous
quarter, and up from average deposits of $10.16 billion during the same
quarter last year. Deposit balances are summarized in Tables 7a, 7b, and 10.

Long-term debt was $128.1 million at December 31, 2012, up from $28.1 million
at September 30, 2012 and $30.7 million at December 31, 2011. The increase in
long-term debt was primarily for asset/liability management purposes.

As a result of the strong deposit growth, which exceeded loan growth during
the fourth quarter, the investment portfolio increased to $6.96 billion at
December 31, 2012, compared to $6.60 billion at September 30, 2012, and was
down slightly from $7.11 billion at December 31, 2011. The investment
portfolio remains largely comprised of securities issued by U. S. government
agencies.

During the fourth quarter of 2012, the Company repurchased 339.0 thousand
shares of common stock at a total cost of $14.9 million under its share
repurchase program. The average cost was $44.06 per share repurchased. From
January 2 through January 25, 2013, the Company repurchased an additional 34.0
thousand shares of common stock at an average cost of $46.60 per share
repurchased. From the beginning of the share repurchase program initiated
during July 2001 through December 31, 2012, the Company has repurchased 50.3
million shares and returned over $1.8 billion to shareholders at an average
cost of $36.34 per share. Remaining buyback authority under the share
repurchase program was $67.9 million at January 25, 2013.

Total shareholders’ equity was $1.02 billion at December 31, 2012, down
slightly from September 30, 2012, and up from $1.00 billion at December 31,
2011. The ratio of tangible common equity to risk-weighted assets was 17.24
percent at December 31, 2012 compared with 17.43 percent at September 30, 2012
and 17.93 percent at December 31, 2011. The Tier 1 leverage ratio at December
31, 2012 was 6.83 percent, up from 6.78 percent at September 30, 2012 and 6.73
percent at December 31, 2011.

The Company’s Board of Directors declared a quarterly cash dividend of $0.45
per share on the Company’s outstanding shares. The dividend will be payable on
March 14, 2013 to shareholders of record at the close of business on February
28, 2013.

Hawaii Economy

Hawaii’s economy continued to improve during the fourth quarter of 2012
primarily due to a strong visitor industry. A record 8.0 million total
visitors arrived in Hawaii during 2012, up 9.6 percent compared with 2011, and
exceeding the previous high of 7.6 million visitors during 2006. Total visitor
spending reached a record high of $14.3 billion in 2012, up 18.7 percent
compared with 2011, and was largely due to strong spending by international
visitors. The statewide seasonally-adjusted unemployment rate continued to
decline during the fourth quarter of 2012 to 5.2% in December compared with
7.8% nationally. Median sales prices for single-family homes and condominiums
as well as closed sales on Oahu increased during 2012 compared with the prior
year. Months of inventory at December 31, 2012 for single-family homes on Oahu
declined to 2.5 and 3.0 for condominiums. More information on current Hawaii
economic trends is presented in Table 15.

Conference Call Information

The Company will review its 2012 financial results today at 8:00 a.m. Hawaii
Time (1:00 p.m. Eastern Time). The call will be accessible via teleconference
and via the Investor Relations link of Bank of Hawaii Corporation’s web site,
www.boh.com. The conference call number for participants in the United States
is 800-299-9086. International participants should call 617-786-2903. Use the
pass code “Bank of Hawaii” to access the call. A replay of the conference call
will be available for one week beginning Wednesday, January 30, 2013 by
calling 888-286-8010 in the United States or 617-801-6888 internationally and
entering the number 46643910 when prompted. A replay will also be available
via the Investor Relations link of the Company’s web site.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with
it may contain "forward-looking statements", such as forecasts of our
financial results and condition, expectations for our operations and business
prospects, and our assumptions used in those forecasts and expectations. Do
not unduly rely on forward-looking statements. Actual results might differ
significantly from our forecasts and expectations because of a variety of
factors. More information about these factors is contained in Bank of Hawaii
Corporation's Annual Report on Form 10-K for the year ended December 31, 2011,
which was filed with the U.S. Securities and Exchange Commission. We do not
promise to update forward-looking statements to reflect later events or
circumstances

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

Bank of Hawaii Corporation and Subsidiaries
Financial       Table 1a
Highlights
                Three Months Ended                           Year Ended
                 December 31,   September      December 31,   December 31,
                                30,
(dollars in
thousands,      2012          2012          2011          2012          2011
except per
share amounts)
For the
Period:
Operating
Results
Net Interest     $ 90,310       $ 93,632       $ 96,246       $ 377,271      $ 390,208
Income
Provision for      -           -           2,219          979            12,690
Credit Losses
Total
Noninterest        52,982         52,374         43,407         200,286        197,655
Income
Total
Noninterest        83,456         84,878         84,382         334,288        348,193
Expense
Net Income         40,287         41,232         39,229         166,076        160,043
Basic Earnings     0.90           0.92           0.85           3.68           3.40
Per Share
Diluted
Earnings Per       0.90           0.92           0.85           3.67           3.39
Share
Dividends
Declared Per       0.45           0.45           0.45           1.80           1.80
Share
                                                                                          
Performance
Ratios
Return on          1.19       %   1.22       %   1.17       %   1.22       %   1.22       %
Average Assets
Return on
Average            15.47          16.02          15.23          16.23          15.69
Shareholders'
Equity
Efficiency         58.24          58.13          60.42          57.88          59.23
Ratio ^1
Net Interest       2.87           2.98           3.04           2.97           3.13
Margin ^2
Dividend
Payout Ratio       50.00          48.91          52.94          48.91          52.94
^3
Average
Shareholders'      7.67           7.59           7.65           7.52           7.78
Equity to
Average Assets
                                                                                          
Average
Balances
Average Loans    $ 5,798,057    $ 5,716,421    $ 5,420,352    $ 5,680,279    $ 5,349,938
and Leases
Average Assets     13,516,519     13,490,835     13,357,646     13,609,188     13,105,029
Average            11,376,875     11,301,668     10,160,392     10,935,016     9,924,697
Deposits
Average
Shareholders'      1,036,223      1,023,804      1,022,012      1,023,256      1,020,065
Equity
                                                                                          
Per Share of
Common Stock
Book Value       $ 22.83        $ 22.77        $ 21.82        $ 22.83        $ 21.82
Market Price
Closing            44.05          45.62          44.49          44.05          44.49
High               46.38          48.92          45.13          49.99          49.26
Low                41.41          45.29          34.50          41.41          34.50
                                                                                          
                                               December 31,   September      December 31,
                                                              30,
                                         2012          2012          2011
As of Period
End:
Balance Sheet
Totals
Loans and                                      $ 5,854,521    $ 5,782,304    $ 5,538,304
Leases
Total Assets                                     13,728,372     13,382,425     13,846,391
Total Deposits                                   11,529,482     11,220,547     10,592,623
Long-Term Debt                                   128,055        28,065         30,696
Total
Shareholders'                                    1,021,665      1,024,562      1,002,667
Equity
                                                                                          
Asset Quality
Allowance for
Loan and Lease                                 $ 128,857      $ 130,971      $ 138,606
Losses
Non-Performing                                   37,083         40,284         40,790
Assets
                                                                                          
Financial
Ratios
Allowance to
Loans and                                        2.20       %   2.27       %   2.50       %
Leases
Outstanding
Tier 1 Capital                                   16.13          16.12          16.68
Ratio
Total Capital                                    17.39          17.39          17.95
Ratio
Tier 1                                           6.83           6.78           6.73
Leverage Ratio
Total
Shareholders'                                    7.44           7.66           7.24
Equity to
Total Assets
Tangible
Common Equity                                    7.23           7.44           7.03
to Tangible
Assets ^4
Tangible
Common Equity
to                                               17.24          17.43          17.93
Risk-Weighted
Assets ^ 4
                                                                                          
Non-Financial
Data
Full-Time
Equivalent                                       2,276          2,304          2,370
Employees
Branches and                                     76             77             81
Offices
ATMs                                             494            495            506
                                                                                          
                                                                                          
^1 Efficiency ratio is defined as noninterest expense divided by total revenue (net
interest income and total noninterest income).
^2 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as
a percentage of average earning assets.
^3 Dividend payout ratio is defined as dividends declared per share divided by basic
earnings per share.
^4 Tangible common equity, a non-GAAP financial measure, is defined by the Company as
shareholders' equity minus goodwill and intangible assets. Intangible assets are included
as a component of other assets in the Consolidated Statements of Condition.


                                                            
Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP   Table 1b
Financial Measures
                              December 31,     September 30,    December 31,
(dollars in thousands)       2012            2012            2011
                                                                
Total Shareholders' Equity    $ 1,021,665      $ 1,024,562      $ 1,002,667
Less:Goodwill                   31,517           31,517           31,517
Intangible Assets             33            46            83         
Tangible Common Equity       $ 990,115      $ 992,999      $ 971,067    
                                                                
Total Assets                  $ 13,728,372     $ 13,382,425     $ 13,846,391
Less:Goodwill                   31,517           31,517           31,517
Intangible Assets             33            46            83         
Tangible Assets              $ 13,696,822   $ 13,350,862   $ 13,814,791 
                                                                
Risk-Weighted Assets,
determined in accordance      $ 5,744,722      $ 5,697,581      $ 5,414,481
with prescribed regulatory
requirements
                                                                
Total Shareholders' Equity      7.44       %     7.66       %     7.24       %
to Total Assets
Tangible Common Equity to       7.23       %     7.44       %     7.03       %
Tangible Assets (Non-GAAP)
                                                                
Tier 1 Capital Ratio            16.13      %     16.12      %     16.68      %
Tangible Common Equity to
Risk-Weighted Assets            17.24      %     17.43      %     17.93      %
(Non-GAAP)
                                                                

                                                              
Bank of Hawaii
Corporation
and
Subsidiaries
Net
Significant
Income          Table 2
(Expense)
Items
                 Three Months Ended         Year Ended
                 December 31,   September   December   December 31,
                                30,         31,
(dollars in     2012          2012       2011      2012        2011
thousands)
Investment
Securities       $  -           $  -        $  -       $ -          $ 6,366
Gains, Net
Gain on Mutual      -              -           -         -            1,956
Fund Sale
Gains (Losses)
on Disposal of      -              -           -         2,473        -
Leased
Equipment
Decrease in
Allowance for       2,114          1,472       4,804     9,749        8,752
Loan and Lease
Losses
Planned Branch
Closures in         (1,465  )      -           -         (1,465 )     -
American Samoa
Bank of Hawaii
Charitable          -              -           -         -            (2,000 )
Foundation
PC Refresh          -              -           -         (1,163 )     -
Settlement
Related to        -           -         -       -         (9,000 )
Overdraft
Claims
Significant
Income
(Expense)
Items Before      649         1,472     4,804   9,594     6,074  
the Provision
(Benefit) for
Income Taxes
Income Taxes
Impact Related      -              -           -         (3,083 )     -
to Lease
Transactions
Income Tax        227         515       1,681   2,492     2,126  
Impact
Net
Significant
Income          $  422       $  957     $  3,123  $ 10,185   $ 3,948  
(Expense)
Items
                                                                    


Bank of Hawaii Corporation and Subsidiaries
Consolidated
Statements of       Table 3
Income
                    Three Months Ended                          Year Ended
                     December 31,  September     December 31,   December 31,
                                    30,
(dollars in
thousands, except   2012          2012          2011          2012            2011
per share amounts)
Interest Income                                                                  
Interest and Fees
on Loans and         $ 64,627       $ 64,668       $ 64,760       $ 257,896        $ 262,239
Leases
Income on
Investment
Securities
Available-for-Sale     15,349         15,922         19,107         65,972           103,363
Held-to-Maturity       20,253         23,232         23,608         94,952           72,138
Deposits               3              3              2              9                8
Funds Sold             180            105            120            533              828
Other                283          283          280          1,127         1,117
Total Interest       100,695      104,213      107,877      420,489       439,693
Income
Interest Expense
Deposits               2,753          2,931          3,736          12,376           18,321
Securities Sold
Under Agreements       7,158          7,185          7,392          28,897           29,171
to Repurchase
Funds Purchased        4              7              5              21               20
Long-Term Debt       470          458          498          1,924         1,973
Total Interest       10,385       10,581       11,631       43,218        49,485
Expense
Net Interest           90,310         93,632         96,246         377,271          390,208
Income
Provision for        -         -         2,219        979           12,690
Credit Losses
Net Interest
Income After         90,310       93,632       94,027       376,292       377,518
Provision for
Credit Losses
Noninterest Income
Trust and Asset        12,066         11,050         11,025         45,229           45,046
Management
Mortgage Banking       11,268         11,745         3,401          35,644           14,664
Service Charges on     9,459          9,346          9,606          37,621           38,733
Deposit Accounts
Fees, Exchange,
and Other Service      12,333         11,907         12,401         48,965           60,227
Charges
Investment
Securities Gains       -           13             282            (77        )     6,366
(Losses), Net
Insurance              2,550          2,326          2,312          9,553            10,957
Other                5,306        5,987        4,380        23,351        21,662
Total Noninterest    52,982       52,374       43,407       200,286       197,655
Income
Noninterest
Expense
Salaries and           46,116         47,231         44,927         184,408          182,816
Benefits
Net Occupancy          11,867         10,524         11,253         42,965           43,169
Net Equipment          4,705          4,523          4,748          19,723           18,849
Professional Fees      2,611          2,494          1,926          9,623            8,623
FDIC Insurance         1,892          1,822          2,027          7,873            9,346
Other                16,265       18,284       19,501       69,696        85,390
Total Noninterest    83,456       84,878       84,382       334,288       348,193
Expense
Income Before
Provision for          59,836         61,128         53,052         242,290          226,980
Income Taxes
Provision for        19,549       19,896       13,823       76,214        66,937
Income Taxes
Net Income          $ 40,287      $ 41,232      $ 39,229      $ 166,076      $ 160,043
Basic Earnings Per   $ 0.90         $ 0.92         $ 0.85         $ 3.68           $ 3.40
Share
Diluted Earnings     $ 0.90         $ 0.92         $ 0.85         $ 3.67           $ 3.39
Per Share
Dividends Declared   $ 0.45         $ 0.45         $ 0.45         $ 1.80           $ 1.80
Per Share
Basic Weighted         44,623,823     44,913,348     46,195,147     45,115,441       47,064,925
Average Shares
Diluted Weighted     44,740,109   45,050,638   46,324,734   45,249,300    47,224,981
Average Shares
                                                                                     

                                                                
Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income        Table 4
                Three Months Ended                      Year Ended
                December      September   December      December 31,
                31,           30,         31,
(dollars in    2012         2012       2011         2012         2011
thousands)
Net Income      $ 40,287      $  41,232   $ 39,229      $ 166,076     $ 160,043
Other
Comprehensive
Income
(Loss), Net
of Tax:
Net
Unrealized
Gains             (9,858  )      9,770      (1,965  )     (3,155  )     16,411
(Losses) on
Investment
Securities
Defined         (3,358  )    152      (9,526  )   (2,900  )   (8,113  )
Benefit Plans
Other
Comprehensive   (13,216 )    9,922    (11,491 )   (6,055  )   8,298   
Income (Loss)
Comprehensive  $ 27,071    $  51,154  $ 27,738    $ 160,021   $ 168,341 
Income
                                                                      

                                                            
Bank of Hawaii
Corporation and
Subsidiaries
Consolidated
Statements of                                              Table 5
Condition
(dollars in            December 31, 2012  September 30,      December 31,
thousands)                                  2012                2011
Assets
Interest-Bearing        $  3,393            $  4,673            $ 3,036
Deposits
Funds Sold                 185,682             251,664            512,384
Investment Securities
Available-for-Sale         3,367,557           3,124,209          3,451,885
Held to Maturity
(Fair Value of
$3,687,676;                3,595,065           3,475,259          3,657,796
$3,587,997; and
$3,754,206)
Loans Held for Sale        21,374              25,971             18,957
Loans and Leases           5,854,521           5,782,304          5,538,304
Allowance for Loan       (128,857    )     (130,971    )    (138,606   )
and Lease Losses
Net Loans and Leases     5,725,664        5,651,333       5,399,698  
Total Earning Assets     12,898,735       12,533,109      13,043,756 
Cash and
Noninterest-Bearing        163,786             153,599            154,489
Deposits
Premises and               105,005             107,144            103,550
Equipment
Customers'                 173                 242                476
Acceptances
Accrued Interest           43,077              47,192             43,510
Receivable
Foreclosed Real            3,887               3,067              3,042
Estate
Mortgage Servicing         25,240              23,980             24,279
Rights
Goodwill                   31,517              31,517             31,517
Other Assets             456,952          482,575         441,772    
Total Assets           $  13,728,372     $  13,382,425     $ 13,846,391 
                                                                
Liabilities
Deposits
Noninterest-Bearing     $  3,367,185        $  2,985,561        $ 2,850,923
Demand
Interest-Bearing           2,163,473           2,034,319          2,005,983
Demand
Savings                    4,399,316           4,480,733          4,398,638
Time                     1,599,508        1,719,934       1,337,079  
Total Deposits           11,529,482       11,220,547      10,592,623 
Funds Purchased            11,296              10,942             10,791
Securities Sold Under
Agreements to              758,947             818,080            1,925,998
Repurchase
Long-Term Debt             128,055             28,065             30,696
Banker's Acceptances       173                 242                476
Retirement Benefits        47,658              41,872             46,949
Payable
Accrued Interest           4,776               5,997              5,330
Payable
Taxes Payable and          88,014              94,369             95,840
Deferred Taxes
Other Liabilities        138,306          137,749         135,021    
Total Liabilities        12,706,707       12,357,863      12,843,724 
Shareholders' Equity
Common Stock ($.01
par value; authorized
500,000,000 shares;
issued / outstanding:
December 31, 2012 -
57,319,352 /               571                 571                571
44,754,835; September
30, 2012 - 57,315,093
/ 45,004,813; and
December 31, 2011 -
57,134,470 /
45,947,116)
Capital Surplus            515,619             513,758            507,558
Accumulated Other          29,208              42,424             35,263
Comprehensive Income
Retained Earnings          1,084,477           1,065,245          1,003,938
Treasury Stock, at
Cost (Shares:
December 31, 2012 -
12,564,517; September    (608,210    )     (597,436    )    (544,663   )
30, 2012 -
12,310,280; and
December 31, 2011 -
11,187,354)
Total Shareholders'      1,021,665        1,024,562       1,002,667  
Equity
Total Liabilities and  $  13,728,372     $  13,382,425     $ 13,846,391 
Shareholders' Equity
                                                                


Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity                                 Table 6
                                                Accum.                                  
                                                    Other
                                                    Compre-
                Common         Common   Capital     hensive      Retained        Treasury
                Shares
(dollars in    Outstanding   Stock   Surplus    Income      Earnings       Stock         Total
thousands)
Balance as of
December 31,    48,097,672     $  570   $ 500,888   $ 26,965     $ 932,629       $ (449,919 )   $ 1,011,133
2010
Net Income      -                 -       -           -            160,043         -              160,043
Other
Comprehensive   -                 -       -           8,298        -               -              8,298
Income
Share-Based     -                 -       6,216       -            -               -              6,216
Compensation
Common Stock
Issued under
Purchase and
Equity
Compensation
Plans and       389,470           1       454         -            (3,843    )     16,800         13,412
Related Tax
Benefits
Common Stock    (2,540,026 )      -       -           -            -               (111,544 )     (111,544  )
Repurchased
Cash
Dividends      -              -     -         -         (84,891   )   -           (84,891   )
Paid ($1.80
per share)
Balance as of
December 31,   45,947,116   $  571  $ 507,558  $ 35,263   $ 1,003,938   $ (544,663 )  $ 1,002,667 
2011
                                                                                                
Net Income      -                 -       -           -            166,076         -              166,076
Other
Comprehensive   -                 -       -           (6,055 )     -               -              (6,055    )
Loss
Share-Based     -                 -       7,537       -            -               -              7,537
Compensation
Common Stock
Issued under
Purchase and
Equity
Compensation
Plans and       565,956           -       524         -            (3,892    )     17,897         14,529
Related Tax
Benefits
Common Stock    (1,758,237 )      -       -           -            -               (81,444  )     (81,444   )
Repurchased
Cash
Dividends      -              -     -         -         (81,645   )   -           (81,645   )
Paid ($1.80
per share)
Balance as of
December 31,   44,754,835   $  571  $ 515,619  $ 29,208   $ 1,084,477   $ (608,210 )  $ 1,021,665 
2012
                                                                                                            

                                                                                       
Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis                           Table 7a
                     Three Months Ended                Three Months Ended                Three Months Ended
                      December 31, 2012                 September 30, 2012                December 31, 2011
                      Average     Income/  Yield/     Average     Income/  Yield/     Average     Income/  Yield/
(dollars in          Balance     Expense  Rate     Balance     Expense  Rate     Balance     Expense  Rate
millions)
Earning Assets
Interest-Bearing      $ 4.4        $ -       0.29   %   $ 4.0        $ -       0.33   %   $ 3.9        $ -       0.23   %
Deposits
Funds Sold              332.1        0.2     0.21         221.5        0.1     0.19         239.0        0.1     0.20
Investment
Securities
Available-for-Sale      3,277.2      17.6    2.15         3,247.8      18.3    2.26         3,763.7      19.9    2.12
Held-to-Maturity        3,406.3      20.3    2.38         3,617.3      23.2    2.57         3,259.8      23.6    2.90
Loans Held for Sale     18.9         0.2     4.36         15.8         0.2     4.32         14.7         0.2     4.73
Loans and Leases ^1
Commercial and          811.3        7.8     3.84         797.2        7.7     3.86         798.3        8.0     3.99
Industrial
Commercial Mortgage     1,063.6      11.2    4.18         993.2        10.8    4.32         929.0        10.9    4.66
Construction            104.5        1.2     4.77         100.1        1.3     4.97         85.7         1.1     4.84
Commercial Lease        275.9        1.7     2.46         278.5        1.7     2.42         311.0        2.1     2.68
Financing
Residential             2,369.5      27.5    4.64         2,391.8      28.1    4.70         2,163.1      27.3    5.05
Mortgage
Home Equity             771.3        8.1     4.18         770.2        8.3     4.28         778.1        9.0     4.57
Automobile              205.6        3.0     5.73         194.9        2.9     5.90         190.7        3.1     6.40
Other ^2              196.4      4.0    8.15      190.5      3.9    8.09      164.5      3.2    7.76
Total Loans and       5,798.1    64.5   4.44      5,716.4    64.7   4.51      5,420.4    64.7   4.75
Leases
Other                 79.5       0.3    1.43      80.1       0.3    1.41      79.9       0.3    1.40
Total Earning         12,916.5   103.1  3.19      12,902.9   106.8  3.30      12,781.4   108.8  3.40
Assets ^3
Cash and
Noninterest-Bearing     144.8                             134.9                             142.2
Deposits
Other Assets           455.2                            453.0                            434.0
Total Assets          $ 13,516.5                        $ 13,490.8                        $ 13,357.6
                                                                                                                        
Interest-Bearing
Liabilities
Interest-Bearing
Deposits
Demand                  2,011.2      0.1     0.03         1,968.8      0.1     0.03         1,799.9      0.1     0.03
Savings                 4,451.4      1.0     0.09         4,456.2      1.0     0.09         4,447.8      1.4     0.13
Time                  1,755.6    1.6    0.36      1,823.2    1.8    0.38      1,145.4    2.2    0.76
Total
Interest-Bearing      8,218.2    2.7    0.13      8,248.2    2.9    0.14      7,393.1    3.7    0.20
Deposits
Short-Term              11.0         -       0.14         18.5         -       0.15         20.4         -       0.08
Borrowings
Securities Sold
Under Agreements to     776.8        7.2     3.61         853.0        7.2     3.30         1,848.9      7.4     1.57
Repurchase
Long-Term Debt        36.7       0.5    5.12      28.0       0.5    6.52      30.7       0.5    6.49
Total
Interest-Bearing      9,042.7    10.4   0.45      9,147.7    10.6   0.46      9,293.1    11.6   0.49
Liabilities
Net Interest Income                $ 92.7                            $ 96.2                            $ 97.2
Interest Rate                                2.74   %                          2.84   %                          2.91   %
Spread
Net Interest Margin                          2.87   %                          2.98   %                          3.04   %
Noninterest-Bearing     3,158.7                           3,053.5                           2,767.3
Demand Deposits
Other Liabilities       278.9                             265.8                             275.2
Shareholders'          1,036.2                          1,023.8                          1,022.0
Equity
Total Liabilities
and Shareholders'     $ 13,516.5                        $ 13,490.8                        $ 13,357.6
Equity
                                                                                                                        
                                                                                                                        
^1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on
such loans and leases is recognized on a cash basis.
^2 Comprised of other consumer revolving credit, installment, and consumer lease financing.
^3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 35%, of
$2,394,000, $2,529,000 and $938,000 for the three months ended December 31, 2012, September 30, 2012, and December 31,
2011, respectively.
                                                                                                                        


Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates -                             Table 7b
Taxable-Equivalent Basis
                     Year Ended                       Year Ended
                      December 31, 2012                 December 31, 2011
                      Average     Income/  Yield/     Average     Income/  Yield/
(dollars in          Balance     Expense  Rate     Balance     Expense  Rate
millions)
Earning Assets
Interest-Bearing      $ 3.7        $ -       0.26   %   $ 4.2        $ -       0.19   %
Deposits
Funds Sold              263.5        0.5     0.20         380.2        0.8     0.22
Investment
Securities
Available-for-Sale      3,346.3      75.0    2.24         4,439.8      105.4   2.37
Held-to-Maturity        3,636.7      95.0    2.61         2,279.6      72.2    3.16
Loans Held for Sale     14.7         0.6     4.29         11.0         0.5     4.54
Loans and Leases ^1
Commercial and          800.2        31.3    3.91         790.6        31.8    4.02
Industrial
Commercial Mortgage     988.2        42.9    4.34         887.1        42.8    4.82
Construction            101.9        5.1     5.04         80.1         4.0     5.06
Commercial Lease        283.3        6.8     2.39         322.1        8.7     2.71
Financing
Residential             2,349.6      111.3   4.74         2,126.9      111.5   5.24
Mortgage
Home Equity             773.2        33.4    4.31         784.9        37.4    4.76
Automobile              196.8        11.7    5.96         194.4        13.2    6.78
Other ^2              187.1      15.2   8.11      163.8      12.4   7.57
Total Loans and       5,680.3    257.7  4.54      5,349.9    261.8  4.89
Leases
Other                 79.9       1.1    1.41      79.9       1.1    1.40
Total Earning         13,025.1   429.9  3.30      12,544.6   441.8  3.52
Assets ^3
Cash and
Noninterest-Bearing     137.2                             135.3
Deposits
Other Assets           446.9                            425.1
Total Assets          $ 13,609.2                        $ 13,105.0
                                                                                      
Interest-Bearing
Liabilities
Interest-Bearing
Deposits
Demand                  1,938.6      0.5     0.03         1,786.7      0.7     0.04
Savings                 4,447.8      4.5     0.10         4,501.0      7.3     0.16
Time                  1,524.6    7.4    0.48      1,067.8    10.3   0.96
Total
Interest-Bearing      7,911.0    12.4   0.16      7,355.5    18.3   0.25
Deposits
Short-Term              15.1         -       0.14         18.2         -       0.11
Borrowings
Securities Sold
Under Agreements to     1,335.7      28.9    2.16         1,845.8      29.2    1.58
Repurchase
Long-Term Debt        31.5       1.9    6.10      31.6       2.0    6.23
Total
Interest-Bearing      9,293.3    43.2   0.47      9,251.1    49.5   0.53
Liabilities
Net Interest Income                $ 386.7                           $ 392.3
Interest Rate                                2.83   %                          2.99   %
Spread
Net Interest Margin                          2.97   %                          3.13   %
Noninterest-Bearing     3,024.0                           2,569.2
Demand Deposits
Other Liabilities       268.6                             264.6
Shareholders'          1,023.3                          1,020.1
Equity
Total Liabilities
and Shareholders'     $ 13,609.2                        $ 13,105.0
Equity
                                                                                      
                                                                                      
^1 Non-performing loans and leases are included in the respective average loan and
lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
^2 Comprised of other consumer revolving credit, installment, and consumer lease
financing.
^3 Interest income includes taxable-equivalent basis adjustments, based upon a federal
statutory tax rate of 35%, of $9,473,000 and $2,080,000 for the year ended December 31,
2012 and 2011, respectively.



Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent    Table 8a
Basis
                             Three Months Ended December 31, 2012
                              Compared to September 30, 2012
(dollars in millions)        Volume ^1         Rate ^1          Total
Change in Interest                                             
Income:
Funds Sold                    $   0.1            $   -             $  0.1
Investment Securities
Available-for-Sale                0.2                (0.9   )         (0.7  )
Held-to-Maturity                  (1.3   )           (1.6   )         (2.9  )
Loans and Leases
Commercial and Industrial         0.1                -                0.1
Commercial Mortgage               0.7                (0.3   )         0.4
Construction                      0.1                (0.2   )         (0.1  )
Residential Mortgage              (0.3   )           (0.3   )         (0.6  )
Home Equity                       -                  (0.2   )         (0.2  )
Automobile                        0.2                (0.1   )         0.1
Other ^2                        0.1             -             0.1   
Total Loans and Leases          0.9             (1.1   )       (0.2  )
Total Change in Interest        (0.1   )         (3.6   )       (3.7  )
Income
                                                                   
Change in Interest
Expense:
Interest-Bearing Deposits
Time                            (0.1   )         (0.1   )       (0.2  )
Total Interest-Bearing          (0.1   )         (0.1   )       (0.2  )
Deposits
Securities Sold Under           (0.6   )         0.6           -     
Agreements to Repurchase
Long-Term Debt                  0.1             (0.1   )       -     
Total Change in Interest        (0.6   )         0.4           (0.2  )
Expense
                                                                   
Change in Net Interest       $   0.5          $   (4.0   )     $  (3.5  )
Income
                                                                   
                                                                   
^1 The change in interest income and expense not solely due to changes in
volume or rate has been allocated on a pro-rata basis to the volume and rate
columns.
^2 Comprised of other consumer revolving credit, installment, and consumer
lease financing.


                                                              
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent    Table 8b
Basis
                              Three Months Ended December 31, 2012
                              Compared to December 31, 2011
(dollars in millions)        Volume ^1         Rate ^1          Total
Change in Interest
Income:
Funds Sold                    $   0.1            $   -             $  0.1
Investment Securities
Available-for-Sale                (2.6   )           0.3              (2.3  )
Held-to-Maturity                  1.1                (4.4    )        (3.3  )
Loans and Leases
Commercial and Industrial         0.1                (0.3    )        (0.2  )
Commercial Mortgage               1.5                (1.2    )        0.3
Construction                      0.2                (0.1    )        0.1
Commercial Lease                  (0.2   )           (0.2    )        (0.4  )
Financing
Residential Mortgage              2.5                (2.3    )        0.2
Home Equity                       (0.1   )           (0.8    )        (0.9  )
Automobile                        0.2                (0.3    )        (0.1  )
Other ^2                        0.6             0.2           0.8   
Total Loans and Leases          4.8             (5.0    )      (0.2  )
Total Change in Interest        3.4             (9.1    )      (5.7  )
Income
                                                                   
Change in Interest
Expense:
Interest-Bearing Deposits
Savings                           -                  (0.4    )        (0.4  )
Time                            0.9             (1.5    )      (0.6  )
Total Interest-Bearing          0.9             (1.9    )      (1.0  )
Deposits
Securities Sold Under             (6.0   )           5.8              (0.2  )
Agreements to Repurchase
Long-Term Debt                  0.1             (0.1    )      -     
Total Change in Interest        (5.0   )         3.8           (1.2  )
Expense
                                                                   
Change in Net Interest       $   8.4          $   (12.9   )    $  (4.5  )
Income
                                                                   
                                                                   
^1 The change in interest income and expense not solely due to changes in
volume or rate has been allocated on a pro-rata basis to the volume and rate
columns.
^2 Comprised of other consumer revolving credit, installment, and consumer
lease financing.

                                                             
Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent   Table 8c
Basis
                             Year Ended December 31, 2012
                             Compared to December 31, 2011
(dollars in millions)       Volume ^1          Rate ^1         Total
Change in Interest
Income:
Funds Sold                   $   (0.2    )       $   (0.1   )     $  (0.3   )
Investment Securities
Available-for-Sale               (24.8   )           (5.6   )        (30.4  )
Held-to-Maturity                 37.1                (14.3  )        22.8
Loans Held for Sale              0.1                 -               0.1
Loans and Leases
Commercial and                   0.4                 (0.9   )        (0.5   )
Industrial
Commercial Mortgage              4.6                 (4.5   )        0.1
Construction                     1.1                 -               1.1
Commercial Lease                 (1.0    )           (0.9   )        (1.9   )
Financing
Residential Mortgage             11.1                (11.3  )        (0.2   )
Home Equity                      (0.5    )           (3.5   )        (4.0   )
Automobile                       0.1                 (1.6   )        (1.5   )
Other ^2                       1.9              0.9          2.8    
Total Loans and Leases         17.7             (21.8  )      (4.1   )
Total Change in Interest       29.9             (41.8  )      (11.9  )
Income
                                                                  
Change in Interest
Expense:
Interest-Bearing
Deposits
Demand                           0.1                 (0.3   )        (0.2   )
Savings                          (0.1    )           (2.7   )        (2.8   )
Time                           3.4              (6.3   )      (2.9   )
Total Interest-Bearing         3.4              (9.3   )      (5.9   )
Deposits
Securities Sold Under            (9.4    )           9.1             (0.3   )
Agreements to Repurchase
Long-Term Debt                 -                (0.1   )      (0.1   )
Total Change in Interest       (6.0    )         (0.3   )      (6.3   )
Expense
                                                                  
Change in Net Interest      $   35.9          $   (41.5  )    $  (5.6   )
Income
                                                                  
                                                                  
^1 The change in interest income and expense not solely due to changes in
volume or rate has been allocated on a pro-rata basis to the volume and rate
columns.
^2 Comprised of other consumer revolving credit, installment, and consumer
lease financing.
                                                                  


Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits                                   Table 9
                 Three Months Ended                    Year Ended
                  December    September   December     December 31,
                  31,          30,          31,
(dollars in      2012        2012        2011        2012       2011
thousands)
Salaries          $  29,378    $  29,312    $  28,330    $ 115,208  $ 115,512
Incentive            4,248        4,492        3,881       16,926      16,367
Compensation
Share-Based
Compensation
and Cash Grants      1,701        1,817        1,819       6,961       5,720
for the
Purchase of
Company Stock
Commission           1,953        1,750        1,701       6,993       6,489
Expense
Retirement and       3,821        4,322        4,429       16,014      16,829
Other Benefits
Payroll Taxes        2,071        2,267        2,030       10,593      10,645
Medical,
Dental, and          2,388        2,255        2,322       9,319       9,039
Life Insurance
Separation         556        1,016      415       2,394     2,215
Expense
Total Salaries   $  46,116   $  47,231   $  44,927   $ 184,408  $ 182,816
and Benefits
                                                                     


Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances                                           Table 10
                December 31,  September     June 30,      March 31,     December 31,
                                30,
(dollars in     2012          2012          2012          2012          2011
thousands)
Commercial
Commercial and   $ 829,512      $ 808,621      $ 781,688      $ 788,718      $ 817,170
Industrial
Commercial         1,097,425      1,039,556      961,984        948,196        938,250
Mortgage
Construction       113,987        101,818        97,668         110,184        98,669
Lease            274,969      277,328      281,020      285,860      311,928
Financing
Total            2,315,893    2,227,323    2,122,360    2,132,958    2,166,017
Commercial
Consumer
Residential        2,349,916      2,392,871      2,401,331      2,319,485      2,215,892
Mortgage
Home Equity        770,376        770,284        766,839        773,643        780,691
Automobile         209,832        200,788        194,339        193,851        192,506
Other ^1         208,504      191,038      186,614      178,995      183,198
Total Consumer   3,538,628    3,554,981    3,549,123    3,465,974    3,372,287
Total Loans     $ 5,854,521   $ 5,782,304   $ 5,671,483   $ 5,598,932   $ 5,538,304
and Leases
                                                                             
                                                                             
Higher Risk Loans and Leases Outstanding
                 December 31,   September      June 30,       March 31,      December 31,
                                30,
(dollars in     2012          2012          2012          2012          2011
thousands)
Residential      $ 14,984       $ 16,513       $ 16,703       $ 17,602       $ 18,163
Land Loans ^2
Home Equity        19,914         19,774         22,029         21,359         21,413
Loans ^3
Air
Transportation   27,782       27,765       27,633       27,548       36,144
^4
Total Higher    $ 62,680      $ 64,052      $ 66,365      $ 66,509      $ 75,720
Risk Loans
                                                                             
^1 Comprised of other revolving credit, installment, and lease financing.
^2 We consider all of our residential land loans, which are consumer loans secured by
unimproved lots, to be of higher risk due to the volatility in the value of the
underlying collateral.
^3 Higher risk home equity loans are defined as those loans originated in 2005 or later,
with current monitoring credit scores below 600, and with original loan-to-value ratios
greater than 70%.
^4 We consider all of our air transportation leases to be of higher risk due to the weak
financial profile of the industry.
                                                                             
                                                                             
Deposits
                 December 31,   September      June 30,       March 31,      December 31,
                                30,
(dollars in     2012          2012          2012          2012          2011
thousands)
Consumer         $ 5,537,624    $ 5,369,724    $ 5,360,325    $ 5,377,804    $ 5,241,827
Commercial         4,576,410      4,394,745      4,403,095      4,307,931      4,320,712
Public and       1,415,448    1,456,078    1,784,573    935,435      1,030,084
Other
Total Deposits  $ 11,529,482  $ 11,220,547  $ 11,547,993  $ 10,621,170  $ 10,592,623
                                                                               

<td class="bwpadl0 bwnowrap bwp*Story too large*

Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More             Table 11
                         December 31,   September 30,  June 30,       March 31,      December 31,
(dollars in thousands)   2012           2012           2012           2012           2011
Non-Performing Assets
Non-Accrual Loans and
Leases
Commercial
Commercial and            $ 5,534         $ 5,635         $ 5,778         $ 5,852         $ 6,243
Industrial
Commercial Mortgage         3,030           2,671           2,737           2,113           2,140
Construction                833             953             1,182           1,482           2,080
Lease Financing           -            -            -            4            5         
Total Commercial          9,397        9,259        9,697        9,451        10,468    
Consumer
Residential Mortgage        21,725          25,456          26,803          26,356          25,256
Home Equity               2,074        2,502        2,425        2,069        2,024     
Total Consumer            23,799       27,958       29,228       28,425       27,280    
Total Non-Accrual Loans   33,196       37,217       38,925       37,876       37,748    
and Leases
Foreclosed Real Estate    3,887        3,067        2,569        3,530        3,042     
Total Non-Performing     $ 37,083      $ 40,284      $ 41,494      $ 41,406      $ 40,790    
Assets
                                                                                          
Accruing Loans and
Leases Past Due 90 Days
or More
Commercial
Commercial and           $ 27          $ -           $ 1           $ 2           $ 1         
Industrial
Total Commercial          27           -            1            2            1         
Consumer
Residential Mortgage        6,908           3,988           4,229           6,590           6,422
Home Equity                 2,701           2,755           2,445           2,829           2,194
Automobile                  186             154             98              124             170
Other ^ 1                 587          578          395          543          435       
Total Consumer            10,382       7,475        7,167        10,086       9,221     
Total Accruing Loans
and Leases Past Due 90   $ 10,409      $ 7,475       $ 7,168       $ 10,088      $ 9,222     
Days or More
Restructured Loans on
Accrual Status and Not    $ 31,844        $ 31,426        $ 31,124        $ 29,539        $ 33,703
Past Due 90 Days or
More
Total Loans and Leases   $ 5,854,521   $ 5,782,304   $ 5,671,483   $ 5,598,932   $ 5,538,304 
                                                                                          
Ratio of Non-Accrual
Loans and Leases to       0.57      %   0.64      %   0.69      %   0.68      %   0.68      %
Total Loans and Leases
                                                                                          
Ratio of Non-Performing
Assets to Total Loans       0.63      %     0.70      %     0.73      %     0.74      %     0.74      %
and Leases, and
Foreclosed Real Estate
                                                                                          
Ratio of Commercial
Non-Performing Assets
to Total Commercial         0.45      %     0.46      %     0.51      %     0.53      %     0.56      %
Loans and Leases, and
Commercial Foreclosed
Real Estate
                                                                                          
Ratio of Consumer
Non-Performing Assets
to Total Consumer Loans     0.75      %     0.84      %     0.87      %     0.87      %     0.85      %
and Leases and Consumer
Foreclosed Real Estate
                                                                                          
Ratio of Non-Performing
Assets and Accruing
Loans and Leases Past
Due 90 Days or More to      0.81      %     0.83      %     0.86      %     0.92      %     0.90      %
Total Loans and Leases,
and Foreclosed Real
Estate
                                                                                          
Quarter to Quarter
Changes in
Non-Performing Assets
Balance at Beginning of   $ 40,284        $ 41,494        $ 41,406        $ 40,790        $ 37,770
Quarter
Additions                   3,837           2,878           7,574           5,334           8,653
Reductions
Payments                    (3,994    )     (2,408    )     (2,942    )     (2,524    )     (1,173    )
Return to Accrual           (728      )     (1,083    )     (2,085    )     (535      )     (2,421    )
Status
Sales of Foreclosed         (1,354    )     (424      )     (2,247    )     (1,049    )     (1,320    )
Real Estate
Charge-offs/Write-downs   (962      )   (173      )   (212      )   (610      )   (719      )
Total Reductions          (7,038    )   (4,088    )   (7,486    )   (4,718    )   (5,633    )
Balance at End of        $ 37,083      $ 40,284      $ 41,494      $ 41,406      $
Quarter

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