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1. Company Snapshot

1.a. Company Description

Bank of Hawaii Corporation operates as the bank holding company for Bank of Hawaii that provides various financial products and services in Hawaii, Guam, and other Pacific Islands.It operates in three segments: Consumer Banking, Commercial Banking, and Treasury and Other.The Consumer Banking segment offers checking, savings, and time deposit accounts; residential mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, small business loans and leases, and credit cards; private and international client banking, investment, credit, and trust services to individuals and families, and high-net-worth individuals; investment management; institutional investment advisory services to corporations, government entities, and foundations; and brokerage offerings, including equities, mutual funds, life insurance, and annuity products.


This segment operates 54 branch locations and 307 ATMs throughout Hawaii and the Pacific Islands, and a customer service center, as well as through online and mobile banking.The Commercial Banking segment provides corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products.It offers commercial lending and deposit products to middle-market and large companies, and government entities; commercial real estate mortgages to investors, developers, and builders; and international banking and merchant services.


The Treasury and Other segment offers corporate asset and liability management services, including interest rate risk management and foreign exchange services.Bank of Hawaii Corporation was founded in 1897 and is headquartered in Honolulu, Hawaii.

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1.b. Last Insights on BOH

Bank of Hawaii Corporation's recent performance was driven by strong Q2 2025 earnings and revenue beat, with diluted earnings per common share of $1.06, surpassing the Zacks Consensus Estimate of $1.04. Net income for the second quarter of 2025 was $47.6 million, up 8.3% from the linked quarter and 39.8% from the same period last year. The company's return on average common equity for the second quarter of 2025 was 12.50%, compared to 11.80% previously. Additionally, Bank of Hawaii has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. The company's fixed-rate asset repricing continues to drive net interest margin expansion and earnings growth, and this should continue.

1.c. Company Highlights

2. Bank of Hawaii's Q3 2025 Earnings: A Strong Performance

Bank of Hawaii Corporation reported a robust financial performance for the third quarter of 2025, with fully diluted earnings per share (EPS) of $1.20, representing a 29% year-over-year increase and a 13% sequential rise. Net interest margin (NIM) improved for the sixth consecutive quarter, reaching 2.46%, driven by fixed asset repricing and growth in average deposits. The company's net income stood at $53.3 million, up $5.7 million sequentially, while non-interest income increased to $46 million, fueled by higher customer derivative activity, trust and asset management earnings, and elevated loan fees.

Publication Date: Oct -27

📋 Highlights
  • Earnings Surge: Fully diluted EPS rose 29% YoY to $1.20, with sequential growth of 13%.
  • Net Interest Margin Expansion: NIM hit 2.46%, up for the sixth quarter, with guidance to reach 2.50% by year-end and 3% long-term.
  • Deposit Growth & Credit Quality: Average deposits grew 7% annualized; 93% of loans are Hawaii-based, 86% consumer loans secured by real estate.
  • Strategic Wealth Management Overhaul: Partnered with Saterra to enhance Banco Advisors platform, targeting market share growth via tech upgrades.
  • Strong Capital Position: Tier 1 capital at 14.3%, total risk-based capital at 15.4%, both above regulatory thresholds.

Segment Performance

The company's wealth management segment, Banco Advisors, lagged behind consumer and commercial businesses, but it sees an opportunity to leverage its dominant market position and brand strength to build wealth market share. Bank of Hawaii has teamed with Saterra to modernize its broker-dealer platform, which is expected to offer improved technology, client experience, and investment products.

Outlook and Guidance

The company expects its NIM to expand further, potentially reaching 2.50% by year-end and 3% in the future, driven by fixed asset accretion and growth in average deposits. Management also expects low single-digit loan growth, with an improving pipeline, and is maintaining its guidance for 2025 expenses to be around 3% to 4%. The actual EPS of $1.33 beat estimates of $1.13, indicating a strong underlying performance.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of 1.46, the stock appears reasonably valued. The Dividend Yield stands at 4.37%, providing a relatively attractive return for income investors. The bank's capital ratios remained above regulatory thresholds, with Tier one capital and total risk-based capital at 14.3% and 15.4%, respectively, indicating a strong capital position.

Future Prospects

The bank's partnership with Saterra is expected to provide a better client experience and attract top talent. With a commitment to the marketplace and a consistent strategy, the bank is poised for continued growth. The guidance for low single-digit loan growth is maintained, but there may be potential upside with more economic clarity. The bank's strong capital position and attractive dividend yield make it an interesting investment opportunity in the financial sector.

3. NewsRoom

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KBRA Comments on South Plains Financial, Inc.'s Proposed Acquisition of BOH Holdings, Inc.

Dec -04

Source: businesswire.com

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Head to Head Review: Bank of Hawaii (NYSE:BOH) versus Summit State Bank (NASDAQ:SSBI)

Dec -02

Source: defenseworld.net

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South Plains Financial, Inc. Deepens its Commitment to the Houston Market with the Acquisition of BOH Holdings, Inc.

Dec -01

Source: globenewswire.com

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Earn 7.6% Yield On Bank Of Hawaii Series B Preferred Shares

Nov -24

Source: seekingalpha.com

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Is the Options Market Predicting a Spike in Bank of Hawaii Stock?

Nov -04

Source: zacks.com

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Bank of Hawaii: Asset Repricing Drives Strong Operating Leverage In Q3

Oct -31

Source: seekingalpha.com

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Is Bank of Hawaii Stock A Buy After Earnings?

Oct -29

Source: benzinga.com

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Bank of Hawaii Q3 Earnings Beat on Strong NII, Provisions Decline Y/Y

Oct -28

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.90%)

6. Segments

Consumer Banking

Expected Growth: 4.55%

The 4.55% growth in Consumer Banking at Bank of Hawaii Corporation is driven by increasing demand for digital banking services, expansion of mortgage lending, and growth in deposit accounts. Additionally, strategic investments in technology and marketing have improved customer acquisition and retention, contributing to the segment's growth.

Commercial Banking

Expected Growth: 5.4%

The 5.4% growth in Commercial Banking at Bank of Hawaii Corporation is driven by a strong Hawaii economy, increased loan demand, and market share gains. Additionally, the bank's focus on digital transformation, customer relationship management, and strategic hiring have contributed to the growth. Furthermore, the bank's diversified commercial loan portfolio and robust risk management practices have also supported this growth.

Treasury and Other

Expected Growth: 5.45%

Treasury and Other segment of Bank of Hawaii Corporation grew 5.45% driven by increased cash management services, higher commercial deposit fees, and growth in investment securities. Additionally, the segment benefited from a favorable interest rate environment, leading to higher investment income and a rise in non-interest income.

7. Detailed Products

Consumer Banking

Provides personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Commercial Banking

Offers financial solutions to businesses, including cash management, commercial lending, and treasury management services.

Investment Services

Provides investment products and services, including brokerage, investment management, and retirement planning.

Mortgage Banking

Offers residential and commercial mortgage lending services, including loan origination and servicing.

Trust Services

Provides trust and estate services, including trust administration, estate planning, and investment management.

Insurance Services

Offers insurance products, including life insurance, long-term care insurance, and annuities.

8. Bank of Hawaii Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Bank of Hawaii Corporation is moderate due to the presence of alternative financial institutions and digital payment systems.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration of buyers and the limited ability of individual customers to influence prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers and the moderate level of differentiation in the industry.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including regulatory hurdles and the need for significant capital investment.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple competitors and the high level of competition in the banking industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.15%
Debt Cost 7.46%
Equity Weight 66.85%
Equity Cost 9.30%
WACC 8.69%
Leverage 49.59%

11. Quality Control: Bank of Hawaii Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 7.0

Quality: 7.0

Yield: 4.0

Momentum: 7.0

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Bank of Hawaii

A-Score: 6.1/10

Value: 6.1

Growth: 3.7

Quality: 7.7

Yield: 8.0

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Yield: 5.0

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Quality: 5.2

Yield: 4.0

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Growth: 5.9

Quality: 5.8

Yield: 5.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

66.62$

Current Price

66.62$

Potential

-0.00%

Expected Cash-Flows