Bank Of Hawaii (BOH) AI Stock Analysis

• Market Cap: $3.06B
• Dividend Yield: 3.99%
• Average Volume (3M): 434.35K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.64
• Revenue Growth: 3.40%
• EPS Growth: 23.04%
• Country: US
• Employees: 1,876
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.39
• Shares Outstanding: 39,785,090
• 10 Day Avg. Volume: 402,259
• 30 Day Avg. Volume: 434,348
• PEG Ratio: 0.39
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 2.50
• P/FCF Ratio: 12.41
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 3.01
• Enterprise Value/Ebitda: 7.04
• 1Y Price Target: $82.60
• Price Target Upside: 7.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 5.82
• Revenue Forecast (FY): $801.58M

• Rating: 74 Outperform
• Price Target: $86.00 ▲(11.94% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

BOH scores well primarily due to solid financial fundamentals (improving profitability and much lower leverage) and a constructive, guidance-supported earnings outlook (NIM expansion, strong capital, and higher buybacks). Valuation is supportive with a ~3.6% dividend yield and mid-teens P/E, while neutral momentum and some credit/loan-growth watch items keep the score from being higher.

Positive Factors

Balance-sheet strength

Material deleveraging and above‑well‑capitalized ratios provide durable loss-absorption capacity and regulatory flexibility. Strong equity and Tier 1 capital support continued dividends, repurchases and loan loss shock absorption, reducing tail risk and preserving franchise optionality over the medium term.

Sustained NIM expansion

Consecutive margin expansion driven by deposit remixing, CD rolloffs and hedging improves core net interest income resilience. With hedges and a lower cost deposit base, management can sustainably lift NII without relying solely on loan growth, supporting durable profitability across rate cycles.

Conservative credit profile

High credit quality metrics, low LTVs and strong borrower FICO scores indicate sound underwriting and localized market expertise. A concentrated, well‑underwritten book produces lower loss volatility and supports a stable allowance and capital trajectory, underpinning longer‑term earnings durability.

Negative Factors

Modest loan growth

Subdued loan growth constrains organic revenue scaling and makes earnings more dependent on margin expansion and fee income. If loan origination momentum stalls, NII gains and buybacks may face limits, leaving growth tied to balance-sheet repositioning rather than durable credit expansion.

Earnings and cash-flow volatility

Historic swings in margins and inconsistent free cash flow reduce predictability of capital returns and provisioning. Volatile FCF complicates multi‑quarter planning for buybacks/dividends and may force more conservative capital buffers during stress, limiting shareholder optionality over the medium term.

Early credit deterioration signs

Rising early‑stage delinquencies and a slight drop in ACL coverage reduce the cushion against worsening credit. If trends persist, provisions could rise and compress earnings and capital ratios, creating pressure on returns and potentially slowing planned buybacks or dividend increases over the next several quarters.

Bank Of Hawaii Business Overview & Revenue Model

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.

How the Company Makes Money

Bank 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 Financial Statement Overview

Summary

Fundamentals are solid with improving 2025 profitability and a much stronger leverage position (debt-to-equity ~0.05) plus decent ROE (~11%). Offsetting this are earnings/margin volatility versus 2021–2022 peaks and an uneven free-cash-flow trajectory despite healthy current cash conversion.

Income Statement

Revenue has grown from 2020 to 2025 (2025 up ~3% YoY), with margins rebounding strongly versus 2024 (net margin ~19% in 2025 vs ~15% in 2024). However, profitability is still below the 2021–2022 peak levels, and results have shown some volatility across the cycle (notably the 2023–2024 step-down and then recovery in 2025).

Balance Sheet

Leverage improved materially in 2025 with debt-to-equity dropping to ~0.05 (from ~0.45 in 2024 and higher earlier), and equity has grown over time, supporting balance-sheet resilience. Return on equity is solid in 2025 (~11%), but below prior highs (mid-to-high teens in 2021–2022), suggesting profitability on capital has moderated versus peak years.

Cash Flow

Cash generation is generally supportive: operating cash flow covers net income well in 2025 (~2.36x) and free cash flow roughly matches net income (1.0x). The main weakness is consistency—free cash flow growth is negative in 2025 and has swung meaningfully in several prior years, indicating a less stable cash-flow trajectory despite adequate current coverage.

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	218.34M	168.77M	140.82M	304.20M	354.78M
Operating Cash Flow	218.34M	178.45M	150.22M	332.96M	377.15M
Investing Cash Flow	-403.09M	20.99M	562.79M	-1.25B	-2.42B
Financing Cash Flow	367.70M	-436.81M	-113.84M	761.79M	1.99B

Bank Of Hawaii Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 76.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 76.83 is below the 20-day moving average (MA) of 77.15, above the 50-day MA of 73.16, and above the 200-day MA of 67.15, indicating a neutral trend. The MACD of 1.57 indicates Positive momentum. The RSI at 53.22 is Neutral, neither overbought nor oversold. The STOCH value of 49.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BOH.

Bank Of Hawaii Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFS	76 Outperform	$2.86B	9.83	10.72%	4.69%	38.34%	89.73%
BOH	74 Outperform	$3.06B	16.57	11.70%	3.99%	3.40%	23.04%
CVBF	73 Outperform	$2.66B	12.83	21.27%	4.00%	-8.43%	3.75%
PRK	73 Outperform	$3.01B	14.93	13.69%	2.96%	6.29%	28.28%
FBK	72 Outperform	$3.02B	23.07	6.98%	1.34%	10.50%	-6.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SBCF	62 Neutral	$3.17B	20.34	6.33%	2.25%	6.83%	23.44%

Bank Of Hawaii Corporate Events

Bank of Hawaii Updates Executive Incentive and Equity Awards

On February 19, 2026, Bank of Hawaii’s Human Resources and Compensation Committee approved 2025 performance-based Executive Incentive Plan awards and 2026 base salaries for its named executive officers, including Chairman and CEO Peter S. Ho, who will receive a $2,312,500 EIP award and a $925,000 base salary. Other key executives, including the CFO, former CFO, Chief Risk Officer, head of Wealth Management, and Chief Administrative Officer, received EIP awards ranging from $400,000 to $425,000 and base salaries between $462,000 and $500,000, reflecting the bank’s pay-for-performance approach tied to pre-established metrics under its 2024 Stock and Incentive Plan and Executive Incentive Plan.

Also on February 19, 2026, the committee granted restricted stock units to select executives, including 6,330 RSUs to CFO Bradley S. Satenberg, 7,596 to Chief Risk Officer S. Bradley Shairson, and 5,697 each to wealth management head Marco A. Abbruzzese and Chief Administrative Officer Patrick M. McGuirk. These equity awards reinforce long-term alignment between management and shareholders, signaling the bank’s intent to retain key leaders and link compensation more tightly to long-term company performance and shareholder value.

The most recent analyst rating on (BOH) stock is a Hold with a $83.00 price target. To see the full list of analyst forecasts on Bank Of Hawaii stock, see the BOH Stock Forecast page.

Bank of Hawaii announces CEO succession and leadership transition

On February 3, 2026, Bank of Hawai‘i announced that longtime Chairman and Chief Executive Officer Peter S. Ho will retire effective March 31, 2026, after leading the bank since 2010 and more than three decades with the company, and will remain as a consultant through 2027 to support a smooth transition. As part of a long-planned succession process aimed at ensuring continuity for the 128-year-old institution, the board unanimously appointed current President and Chief Banking Officer James C. Polk as Ho’s successor as President and CEO, with Polk joining the board on April 1, while current lead independent director Raymond P. Vara Jr. will become non-executive chairman; the move underscores the bank’s preference for leadership with deep institutional and local market experience, as Polk has held senior roles across commercial, retail and Pacific islands operations, and both executives are noted for strong community engagement, suggesting operational and strategic continuity for customers, employees and other stakeholders.

The most recent analyst rating on (BOH) stock is a Buy with a $91.00 price target. To see the full list of analyst forecasts on Bank Of Hawaii stock, see the BOH Stock Forecast page.