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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

Breaking News: Bank of Hawaii Corporation recently saw Bleakley Financial Group LLC purchase a new position in the company, acquiring 10419 shares valued at approximately $684000. Additionally, the company has been added to several strong buy lists, including Zacks Rank #1, alongside TTMI, ALSN, KALU, and ENVA. BOH, along with PINE and ASBFY, also made it to the Zacks Rank #1 income stocks list. Analysts at Zacks recommend a buy for the stock.

1.c. Company Highlights

2. Bank of Hawaii Corporation Posts Strong Q4 2025 Earnings

Bank of Hawaii Corporation reported robust financial performance in the fourth quarter of 2025, with fully diluted earnings per share (EPS) of $1.39, significantly beating estimates of $1.25. This represented a 63% increase from the previous year and a 16% rise from the last quarter. The net interest margin (NIM) improved for the seventh consecutive quarter, reaching 2.61%, up 15 basis points. The return on common equity also saw a significant improvement, rising to 15%. Loans and deposits experienced modest growth, with noninterest-bearing demand deposits increasing by 6.6%. The company's net interest income continued to expand, driven by successful deposit repricing, securities repositioning, and a shift in deposit mix.

Publication Date: Feb -16

📋 Highlights
  • Earnings Surge: Fully diluted EPS rose 63% YoY to $1.39, with 16% QoQ growth.
  • Net Interest Margin Expansion: NIM hit 2.61% (+15 bps), driven by deposit mix shifts and cost reductions.
  • Deposit Growth: Noninterest-bearing demand deposits climbed 6.6%, boosting low-cost funding.
  • Capital Strength: Tier 1 capital at 14.5%, total risk-based at 15.5%, exceeding regulatory thresholds.
  • Future Margin Outlook: NIM expected to reach near $2.90 in 2026, fueled by asset repricing and rate cuts.

Net Interest Income and Margin Expansion

The yield on interest-earning assets declined slightly, but the cost of interest-bearing liabilities improved by 19 basis points. The company's deposit beta rose from 28% to 31%, and the spot rate on deposits was 1.3%, 13 basis points lower than the average cost during the quarter. The net interest margin is expected to continue expanding, driven by fixed asset repricing, rate cuts, and a mix shift in deposits. The company expects its NIM to reach near the $2.90 range in 2026.

Credit Quality and Capital Position

The company's credit quality remained strong, with net charge-offs totaling $4.1 million, or 12 basis points annualized. Nonperforming assets declined to 10 basis points, and criticized loans increased to 2.12% of total loans. The allowance for credit losses on loans and leases ended the quarter at $146.8 million, down $2 million from the linked quarter. The company's capital ratios remained above well-capitalized regulatory thresholds, with Tier 1 capital and total risk-based capital improving to 14.5% and 15.5%, respectively.

Valuation and Outlook

Given the current Price-to-Tangible Book Value (P/TBV) of 1.67 and a Dividend Yield of 3.58%, the stock appears reasonably valued. Analysts estimate revenue growth at 7.8% for the next year. With the company's strong capital position, it plans to deploy capital into buybacks, targeting $15-20 million per quarter. The guidance for 2026 indicates continued expansion in net interest margin and a normalized expense base.

Business Growth Drivers

The bank's demand deposit account (DDA) growth was driven by market share gains, with a strong quarter indicating potential for future growth. Commercial loan pipelines have built nicely, with growth in commercial real estate and middle market businesses. The residential mortgage side had a solid Q4, driven by increased purchase activity.

3. NewsRoom

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New Strong Buy Stocks for February 26th

Feb -26

Source: zacks.com

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Best Income Stocks to Buy for February 26th

Feb -26

Source: zacks.com

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Bleakley Financial Group LLC Buys New Holdings in Bank of Hawaii Corporation $BOH

Feb -26

Source: defenseworld.net

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BOH Shares Gain Nearly 16% in 3 Months: Should You Buy the Stock Now?

Feb -25

Source: zacks.com

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New Strong Buy Stocks for February 23rd

Feb -23

Source: zacks.com

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Best Income Stocks to Buy for February 23rd

Feb -23

Source: zacks.com

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Bank of Hawaii Director Sells All Shares in His Trust After CEO Announces Retirement

Feb -22

Source: fool.com

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Envestnet Asset Management Inc. Decreases Stock Position in Bank of Hawaii Corporation $BOH

Feb -19

Source: defenseworld.net

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

Stock-Card
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

1-Year Total Return ->

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Wintrust Financial

A-Score: 6.2/10

Value: 6.7

Growth: 6.9

Quality: 7.2

Yield: 4.0

Momentum: 5.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
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

1-Year Total Return ->

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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

1-Year Total Return ->

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Stock-Card
UMB

A-Score: 5.4/10

Value: 5.9

Growth: 5.8

Quality: 6.3

Yield: 4.0

Momentum: 3.5

Volatility: 7.0

1-Year Total Return ->

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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

78.17$

Current Price

78.17$

Potential

-0.00%

Expected Cash-Flows