Bank of Hawaii Corp. today announced that it does not plan to participate in the Treasury's Capital Purchase Program created to strengthen the banking system by providing banks with additional capital to increase lending capabilities.

"After careful consideration by management and our board of directors, we have decided not to participate in the Capital Purchase Program," said Allan R. Landon, the bank's chairman and chief executive officer.

"Bank of Hawaii has the resources to meet the needs of our customers and support our growth. We believe that Bank of Hawaii is safe, balanced and prepared to face the challenging operating conditions as the economy slows without government investment."

As of Sept. 30 the bank's capital position was "well capitalized" by all regulatory standards, Landon said. Its leverage ratio was 7.27 percent and the tier 1 capital ratio was 11.14 percent.

The bank said that as a benefit to customers it is voluntarily participating in the FDIC's fee-based expanded insurance program that provides, without limitation, a guarantee on all of Bank of Hawaii's transaction accounts through Dec. 31, 2009.

Central Pacific Bank on Dec. 9 said it would take advantage of the federal government's bank bailout plan, making it the first Hawai'i bank to do so.

Parent company Central Pacific Financial Corp. said it received preliminary approval for a $135 million infusion from the U.S. Treasury Department's $700 billion Troubled Asset Relief Program.

The bank said it expects to obtain the financing during the first quarter 2009 and will use the money to shore up its balance sheets, which has been hit hard by troubled loans to California homebuilders.