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Bank Of Hawaii Corp. (BOH)
NYSE:BOH
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Bank Of Hawaii
(NYSE:BOH)
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Rating:71Outperform
Price Target:
$78.00
â–²(1.67% Upside)
Action:ReiteratedDate:10/29/25
Bank Of Hawaii's overall stock score reflects its strong financial performance and promising earnings call results, which highlight growth in key areas such as earnings per share and net interest margin. The valuation is fair, with an attractive dividend yield. Technical analysis suggests a neutral trend, with some caution advised due to potential downward momentum. The company should continue to monitor loan growth and expense management closely.
Positive Factors
Net Interest Margin Expansion
Six consecutive quarters of NIM expansion to 2.46% indicate durable improvement in core lending economics. Sustained NIM gains raise net interest income per asset, bolster margins and ROE, and provide recurring earnings tailwinds that reduce dependence on rapid balance-sheet growth.
Local Deposit Franchise
A stronger deposit franchise—reflected by a 40 bps market share gain—provides a durable, low‑cost funding base. Local market leadership improves funding stability, supports sustainable loan growth, and limits reliance on volatile wholesale funding across economic cycles.
Free Cash Flow Generation
A 51.2% TTM rise in free cash flow demonstrates solid cash generation capacity. Strong FCF supports dividends, buybacks and investment in wealth management initiatives, providing financial flexibility to pursue strategic priorities without materially increasing leverage.
Negative Factors
Modest Loan Growth
Sustained low single-digit loan growth constrains long-term earning scalability for a regional bank. With limited asset expansion, the bank must rely on margin improvement or fee income to drive revenue, which can limit long-term EPS upside and capital deployment flexibility.
Rising Non-Interest Expenses
Higher non-interest expenses, including severance charges, erode net margins and reduce operating leverage. If expense growth persists, it can offset NIM gains and pressure net profit margins, limiting capital available for reinvestment or shareholder returns over multiple quarters.
Cash Conversion Inefficiency
A 0.83% operating cash flow to net income ratio suggests weak earnings-to-cash conversion, which can indicate timing or quality issues in accruals. Persistent conversion inefficiency may constrain liquidity, impair ability to fund loans or dividends, and raise funding risk in stress periods.
Bank Of Hawaii (BOH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.15B
Dividend Yield3.99%
Average Volume (3M)432.75K
Price to Earnings (P/E)17.1
Beta (1Y)0.64
Revenue Growth3.40%
EPS Growth23.04%
CountryUS
Employees1,876
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.39
Shares Outstanding39,785,090
10 Day Avg. Volume418,796
30 Day Avg. Volume432,750
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)1.46
Price to Sales (P/S)2.50
P/FCF Ratio0.00
Enterprise Value/Market Cap0.70
Enterprise Value/Revenue2.03
Enterprise Value/Gross Profit3.01
Enterprise Value/Ebitda7.03
Forecast
1Y Price Target
$82.60Price Target Upside7.66% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Bank Of Hawaii Business Overview & Revenue Model
Company DescriptionBank 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.
How the Company Makes MoneyBank of Hawaii generates revenue through various streams, primarily from net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. The bank offers a range of loan products, including consumer loans, mortgages, and commercial loans, which contribute significantly to its interest income. Additionally, BOH earns non-interest income through fees and commissions associated with account services, wealth management, and investment advisory services. The bank may also engage in mortgage servicing and investment in securities, which provide further revenue. Strategic partnerships, such as collaborations with local businesses and community organizations, enhance BOH's market presence and customer loyalty, contributing to its overall financial performance.
Bank Of Hawaii Earnings Call Summary
Earnings Call Date:Jan 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive operational and financial picture: robust EPS and net interest margin expansion, improved funding costs, disciplined credit with low losses, strong capital and resumed buybacks. Headwinds include modest increases in early-stage delinquencies and criticized loans, a small decline in ACL coverage, one-time noninterest income/expense items, and still-modest loan growth. On balance, highlights outweigh the lowlights.Q4-2025 Updates
Positive Updates
Strong Earnings and EPS Growth
Net income of $60.9M and diluted EPS of $1.39, up 63% year-over-year and 16% sequentially.
Net Interest Margin Expansion
NIM expanded for the seventh consecutive quarter, rising 15 basis points in the quarter (reported at 2.61%) with a December/spot read of ~2.67%; management expects NIM could approach ~2.90% in 2026.
Net Interest Income and Drivers
NII expansion was $8.7M in the quarter (largest gain in the seven-quarter stretch), driven by fixed-asset repricing, a $200M securities repositioning, and favorable deposit remix.
Deposit and Funding Improvements
Noninterest-bearing demand deposits grew 6.6% sequentially; interest-bearing deposit costs improved ~20 bps and total cost of funds improved ~16 bps; deposit beta improved from 28% to 31% and spot deposit rate was 1.3% (13 bps lower than quarter average).
Balance Sheet Actions
Remixed $659M of fixed-rate loans and investments from a 4% roll-off into a 5.8% roll-on; CDs average cost declined 22 bps to 3.18% and ~52% of CDs maturing in next 3 months have an avg rate of 3.1% expected to renew at ~2.25%-3%.
Resilient Credit Portfolio and Asset Quality
Portfolio concentrated in core markets (93% Hawaii); consumer loans ~57% (~$8B) with 86% residential/home equity (Wtd avg LTV 48%, Wtd avg FICO 799); commercial $6.1B (43%) with CRE $4.2B (30%) and CRE Wtd avg LTVs below 60% and only 1.6% of CRE >80% LTV.
Low Losses and Stable Reserves
Net charge-offs were $4.1M (12 bps annualized); nonperforming assets declined to 10 bps; allowance for credit losses ended at $146.8M (ACL/loans = 1.04%).
Capital, Shareholder Returns, and Buybacks
Tier 1 capital 14.5% and total risk-based capital 15.5% (both above well-capitalized thresholds); dividends paid ($28M common, $5.3M preferred); resumed buybacks with ~$5M repurchased in Q4 at $65 avg and $121M remaining under plan (management expects to increase repurchases).
Operating Efficiency and Expense Guidance
Noninterest expense declined to $109.5M from $112.4M sequentially (quarter included certain nonrecurring items); management expects 2026 expenses to increase ~3.0%-3.5% vs normalized 2025 and Q1 normalized noninterest expense ~ $113M.
Wealth and Fee Income Momentum
Noninterest income was $44.3M (flat after adjusting for one-offs); wealth fees showing positive traction with quarter-over-quarter fee growth and management expecting continued momentum toward prior longer-term targets.
Negative Updates
Rising Early-Stage Credit Metrics
Delinquencies rose to 36 bps (up 7 bps sequentially and 2 bps YoY); criticized loans increased to 2.12% (up 7 bps sequentially).
Modest Increase in Net Charge-Offs
Net charge-offs of $4.1M (12 bps annualized) were up 5 bps sequentially and 2 bps YoY, driven in part by a ~$1M idiosyncratic charge-off.
Slight Reduction in ACL Coverage
Allowance for credit losses declined $2M sequentially to $146.8M and the ACL/loans ratio dropped 2 bps to 1.04% — management cites improved UHERO outlook as rationale, but coverage is slightly lower.
Noninterest Income One-Offs and Losses
Noninterest income impacted by an $18.1M gain on merchant services sale partly offset by a $16.8M loss from investment portfolio repositioning and a ~$0.77M Visa conversion charge; these items reduce comparability and create near-term volatility in fee income.
Loan Growth Remains Modest
Loans were essentially flat for 2025 (end-of-period) and management expects only low-to-mid single-digit loan growth in 2026 — pipeline improving but growth not yet robust.
Seasonality and Uncertainty in Deposit Stickiness
Management flagged that the 6.6% sequential increase in noninterest-bearing deposits may be partially seasonal and possibly outsized, so sustainability at that clip is uncertain.
Higher Tax Rate and Near-Term Expense Pressures
Effective tax rate in Q4 was 21.5% and is expected to be closer to ~23% in 2026 due to discrete items; Q1 normalized expenses are seasonally higher and actualized normalized noninterest expense was higher than prior forecast due to additional incentives.
Company Guidance
Management guided to continued NIM expansion — finishing the year at 2.67% and targeting near 2.90% by year‑end 2026 with further Q1 upside — alongside a move toward mid‑single‑digit loan growth in 2026; deposit dynamics should remain favorable (noninterest bearing deposits +6.6% linked‑quarter, interest‑bearing deposit cost down 20 bps, total cost of funds down 16 bps, spot deposit rate 1.30% vs. quarter average 13 bps higher, deposit beta improved to 31% with a target ≥35% at terminal Fed funds), CD book average cost fell to 3.18% (52% of CDs maturing in three months at a 3.1% average expected to reprice mostly to ~2.25–3.0%), and hedges include $1.5B of active pay‑fixed receive swaps at a 3.5% weighted rate plus $500M of forward swaps at 3.1%; 2026 operating assumptions: Q1 normalized noninterest income $42–43M, Q1 normalized noninterest expense ≈ $113M and full‑year expense up 3–3.5% vs. 2025 (2025 normalized ≈ $441M), provision for credit losses modest ($2.5M in Q4) with ACL $146.8M (ACL/loans 1.04%), asset quality metrics remaining strong (NPAs 10 bps, NCOs $4.1M or 12 bps annualized, delinquencies 36 bps, criticized loans 2.12%), an anticipated ~23% effective tax rate for 2026, strong capital (Tier 1 14.5%, total risk‑based 15.5%), and continued shareholder returns (Q4 repurchases ~$5M at $65, $121M available under the plan and management expecting to increase buybacks toward roughly $15–20M per quarter).Bank Of Hawaii Financial Statement Overview
Summary
Bank Of Hawaii demonstrates strong financial performance with consistent revenue growth and effective cost management. The balance sheet is stable with improved leverage ratios, and cash flow generation is robust despite some conversion inefficiencies. The company is well-positioned in the regional banking sector, though it should monitor net profit margins and cash conversion closely.Income Statement
Bank Of Hawaii has shown consistent revenue growth over the years, with a TTM revenue growth rate of 2.98%. The gross profit margin remains strong at 65.15% TTM, indicating effective cost management. However, the net profit margin has decreased from previous years, currently at 17.17% TTM, which may suggest rising expenses or increased competition. EBIT and EBITDA margins have improved over the last year, reflecting operational efficiency.75
Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 0.40 TTM, indicating a stable leverage position compared to previous years. Return on equity is at 10.09% TTM, showing a slight decline but still demonstrating effective use of equity. The equity ratio remains stable, suggesting a balanced asset structure. Overall, the balance sheet reflects a solid financial position with manageable debt levels.70
Positive
Cash Flow
Free cash flow has grown significantly by 51.2% TTM, indicating strong cash generation capabilities. However, the operating cash flow to net income ratio is low at 0.83%, which could suggest potential issues in converting income into cash. The free cash flow to net income ratio is healthy at 89.10%, showing efficient cash utilization. Despite some fluctuations, the cash flow position remains robust.65
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.08B | 1.03B | 965.77M | 754.91M | 689.41M |
| Gross Profit | 730.70M | 621.19M | 643.42M | 705.90M | 710.49M |
| EBITDA | 312.73M | 229.37M | 260.11M | 323.85M | 358.13M |
| Net Income | 205.90M | 149.99M | 171.20M | 225.80M | 253.37M |
Balance Sheet | |||||
| Total Assets | 24.18B | 23.60B | 23.73B | 23.61B | 22.78B |
| Cash, Cash Equivalents and Short-Term Investments | 946.52M | 2.62B | 3.41B | 3.17B | 4.47B |
| Total Debt | 92.40M | 747.07M | 805.37M | 1.24B | 564.09M |
| Total Liabilities | 22.33B | 21.93B | 22.32B | 22.29B | 21.17B |
| Stockholders Equity | 1.85B | 1.67B | 1.41B | 1.32B | 1.61B |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 168.77M | 140.82M | 304.20M | 354.78M |
| Operating Cash Flow | 0.00 | 178.45M | 150.22M | 332.96M | 377.15M |
| Investing Cash Flow | 0.00 | 20.99M | 562.79M | -1.25B | -2.42B |
| Financing Cash Flow | 0.00 | -436.81M | -113.84M | 761.79M | 1.99B |
Bank Of Hawaii Technical Analysis
Positive
76.72
Price Trends
73.02
Positive
68.58
Positive
67.09
Positive
Market Momentum
1.79
Positive
52.85
Neutral
63.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BOH, the sentiment is Positive. The current price of 76.72 is below the 20-day moving average (MA) of 77.06, above the 50-day MA of 73.02, and above the 200-day MA of 67.09, indicating a neutral trend. The MACD of 1.79 indicates Positive momentum. The RSI at 52.85 is Neutral, neither overbought nor oversold. The STOCH value of 63.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BOH.
Bank Of Hawaii Risk Analysis
Bank Of Hawaii disclosed 29 risk factors in its most recent earnings report. Bank Of Hawaii reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bank Of Hawaii Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.00B | 10.30 | 10.72% | 4.69% | 38.34% | 89.73% | |
73 Outperform | $2.81B | 13.61 | 21.27% | 4.00% | -8.43% | 3.75% | |
73 Outperform | $3.14B | 15.62 | 13.69% | 2.96% | 6.29% | 28.28% | |
72 Outperform | $3.13B | 23.90 | 6.98% | 1.34% | 10.50% | -6.22% | |
71 Outperform | $3.15B | 17.08 | 11.70% | 3.99% | 3.40% | 23.04% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $3.29B | 21.28 | 6.33% | 2.25% | 6.83% | 23.44% |
* Financial Sector Average
BOH
Bank Of Hawaii
76.72
9.32
13.83%
CVBF
Cvb Financial
19.50
0.66
3.49%
PRK
Park National
165.88
9.34
5.96%
PFS
Provident Financial Services
21.93
5.04
29.82%
SBCF
Seacoast Banking Of Florida
32.14
4.94
18.17%
FBK
FB Financial
56.52
7.93
16.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.