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Bank of Hawaii Receives "Outstanding" Rating from the Federal Reserve Bank for Community Reinvestment Programs

Monday, June 18, 2007

Honolulu, Hawaii (June 18, 2007) - Bank of Hawaii has received an “Outstanding” rating from the Federal Reserve Bank of San Francisco for its performance under the Community Reinvestment Act (CRA).  The bank has received this top rating for its past five consecutive biannual evaluations.

Bank of Hawaii Chairman and CEO Allan R. Landon said, “I’d like to thank our employees for helping us achieve this top rating.  This outstanding rating is consistent with Bank of Hawaii’s commitment to providing quality financial services to our diverse community and our belief that when we support our communities, we all benefit.”

The Federal Reserve Bank rated Bank of Hawaii “Outstanding” on all three CRA tests: lending, investment, and service. 

In the area of lending, Bank of Hawaii was recognized for its “excellent record of serving businesses and borrowers, regardless of revenue size or income level.”

The bank provided more than $148 million in community development loans.  In addition, Bank of Hawaii provided significant support and grants to non-profit organizations in the area of affordable housing such as Hawaii HomeOwnership Center, Self Help Housing and Nanakuli Housing Corporation.

In regard to investment, the evaluation stated, “The bank made an excellent level of community development investments and grants, acting in a leadership capacity, that are not routinely provided by private investors.  These investments exhibited excellent responsiveness to community development credit needs such as affordable housing and the provision of micro loans to small businesses.” 

Relating to service, the Federal Reserve Bank found, “The bank’s overall performance is outstanding based on the enhanced accessibility of banking services and the excellent level of community development services.  Employees performed over 1,600 services totaling approximately 11,000 service hours.”

The 1977 Community Reinvestment Act is a federal law that requires regulating agencies to examine banks and savings and loans to make sure they help meet the credit needs of the communities they serve — including low- and moderate-income communities — based on safe and sound business practices.

The Federal Reserve Bank evaluation performance categories include:  Outstanding, High Satisfactory, Low Satisfactory, Needs to Improve, and Substantial Noncompliance.   Bank of Hawaii received its evaluation for the timeframe between April 2004 and December 2006.

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, visit the company’s website: www.boh.com.