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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 Q4 earnings, fueled by higher net interest income and fee growth. The company's net interest margin expanded for the seventh consecutive quarter, fueling positive operating leverage and robust earnings growth. Institutional investors, such as Bleakley Financial Group LLC and Federated Hermes Inc., have recently acquired positions in the company. Additionally, Bank of Hawaii was added to the Zacks Rank #1 (Strong Buy) List, citing strong growth prospects and climbing earnings estimates.

1.c. Company Highlights

2. Bank of Hawaii Q1 2026: NIM Gains, Credit Strength, and Steady Returns

Bank of Hawaii Corporation posted net income of $57.4 million, translating to earnings per share of $1.30—slightly below the $1.33 consensus estimate—while revenue climbed to $140 million, up 4.2% year‑over‑year. The bank’s net interest income rose 8.5%, and its net interest margin (NIM) expanded by 13 basis points to 2.75%, nudging the institution toward its 2.90% year‑end target. With a P/E of 14.44 and a dividend yield of 1.75%, the stock trades near the mid‑range of the peer group, reflecting modest valuation upside. The ROE of 12.12% and ROIC of 29.22% underscore efficient capital deployment, while a negative Net Debt/EBITDA of –1.03 signals a solid liquidity buffer. Staff noted the sustained NIM growth as a key driver of profitability. <span>[Staff]</span>

Publication Date: Apr -21

📋 Highlights
  • Net Income & EPS Growth:: Q1 2026 net income rose to $57.4M, EPS hit $1.30, up from prior periods, driven by expanded net interest income and margin.
  • Net Interest Margin (NIM) Expansion:: NIM grew 13 bps to 2.89%, with a target of 2.9% by year-end, supported by fixed-rate repricing and lower deposit costs.
  • Strong Credit Portfolio:: Net charge-offs at 3 bps annualized, nonperforming assets fell to 9 bps, and criticized loans remained stable at 2.12% of total loans.
  • Deposit Cost Reduction:: Average deposit cost dropped 17 bps to 2.89%, with a beta of 36%, and time deposit spot rate at 2.8%, offering future repricing opportunities.
  • Capital Returns & Management:: Paid $28M in dividends and repurchased $15M in shares at $77/share, while capital ratios (Tier 1: 14.4%, Total: 15.4%) remained above well-capitalized thresholds.

Interest Income & NIM

The bank’s net interest margin widened for the eighth consecutive quarter, driven by a repricing of fixed‑rate loans and a 17‑basis‑point decline in total deposit costs. Net interest income increased by 8.5%, while the overall yield on earning assets rose following the $643 million remixed in fixed‑rate loans and investments. Management projects a terminal NIM in the 3.25%–3.50% range by 2028, contingent on prevailing rate environments.

Credit Quality

Credit metrics remained robust: net charge‑offs were $1.1 million (3 bps annualized), nonperforming assets fell to 9 bps, and critic‑rated loans held steady at 2.12% of total loans. The allowance for credit losses edged up modestly to $147 million, reflecting conservative provisioning. These figures support the bank’s low default risk profile and a stable loan portfolio.

Noninterest Income & Expense

Noninterest income dipped to $41.3 million, down $2.3 million from the prior quarter, largely due to lower fee earnings and a decline in the wealth‑management division. Noninterest expense totaled $116.1 million, including a seasonal payroll tax of $2.8 million and a $3.5 million nonrecurring charge tied to accelerated stock‑award vesting. The bank anticipates normalized noninterest expense of roughly $112 million for Q2, indicating a potential margin recovery.

Capital & Liquidity

Tier 1 capital and total risk‑based capital ratios stood at 14.4% and 15.4%, comfortably above regulatory thresholds. The bank’s capital ratios could improve by 50–100 bps under forthcoming regulatory changes, further bolstering its balance‑sheet resilience.

Growth Outlook

Consumer book growth remains moderate, while home‑equity and indirect books present headwinds. The bank is deploying direct mailing and digital contracting initiatives to stabilize these segments. Loan growth is projected to stay in the low single‑digit range, with a robust pipeline in residential and commercial lending.

Dividend & Share Repurchase

Bank of Hawaii distributed $28 million in common dividends and $5.3 million in preferred dividends, and repurchased $15 million of common stock at an average price of $77. The Board declared a $0.70 per share dividend for Q2, with no immediate plans for an increase. Additional capital returns are expected to arise primarily through share buybacks.

Deposit Dynamics

Deposit growth was flat in Q1, aided by the runoff of high‑cost public monies and escrow funds. The average cost of total deposits fell 17 bps to 2.89%, and the bank anticipates flat to low single‑digit growth in Q2. The bank’s CD book, largely in the three‑month portfolio, presents repricing opportunities with renewal rates projected between 2.25% and 3%.

3. NewsRoom

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Bank of Hawaii Corporation (BOH) Shareholder/Analyst Call Prepared Remarks Transcript

Apr -24

Source: seekingalpha.com

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Bank of Hawaii Corporation (NYSE:BOH) Receives $83.80 Consensus Target Price from Analysts

Apr -24

Source: defenseworld.net

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Bank of Hawaii Q1 Earnings Miss on Lower Fee Income, Expenses Rise Y/Y

Apr -21

Source: zacks.com

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These Analysts Increase Their Forecasts On Bank of Hawaii After Q1 Earnings

Apr -21

Source: benzinga.com

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Bank of Hawaii: Improved Earnings, But Series B Preferred Is Still The Best Investment

Apr -21

Source: seekingalpha.com

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Bank of Hawaii Corporation (BOH) Q1 2026 Earnings Call Transcript

Apr -20

Source: seekingalpha.com

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Bank of Hawaii Stock Is Worth The Premium Valuation

Apr -20

Source: seekingalpha.com

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Bank of Hawaii (BOH) Reports Q1 Earnings: What Key Metrics Have to Say

Apr -20

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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Texas Capital Bancshares

A-Score: 6.7/10

Value: 7.2

Growth: 5.2

Quality: 7.2

Yield: 5.0

Momentum: 6.0

Volatility: 9.7

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Wintrust Financial

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Growth: 6.9

Quality: 7.2

Yield: 4.0

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Bank of Hawaii

A-Score: 6.0/10

Value: 6.0

Growth: 3.7

Quality: 7.5

Yield: 8.0

Momentum: 3.0

Volatility: 8.0

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SouthState

A-Score: 5.5/10

Value: 5.3

Growth: 5.4

Quality: 6.9

Yield: 5.0

Momentum: 2.5

Volatility: 7.7

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UMB

A-Score: 5.4/10

Value: 5.9

Growth: 5.8

Quality: 6.3

Yield: 4.0

Momentum: 3.5

Volatility: 7.0

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Eastern Bank

A-Score: 5.4/10

Value: 3.8

Growth: 5.8

Quality: 6.1

Yield: 5.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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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

79.51$

Current Price

79.51$

Potential

-0.00%

Expected Cash-Flows