Bank of Hawaii Corp
NYSE:BOH
Bank of Hawaii Corp
The story of Bank of Hawaii Corp is deeply woven into the economic and cultural fabric of Hawaii. Established in 1897, this venerable institution has grown alongside the islands, navigating economic ebbs and flows while maintaining its commitment to the community. As Hawaii's oldest and largest locally-owned bank, its operations are primarily concentrated in retail and commercial banking, delivering a wide array of financial services across not just Hawaii, but also select Pacific Islands. This includes offering checking and savings accounts, loans, and extensive wealth management and investment services.
The company's business model thrives on a robust deposit base, which enables it to Fund its lending activities. Loans range from personal and mortgage loans to commercial borrowing for local businesses. Critical to Bank of Hawaii's success is its focus on understanding local market dynamics and customer needs, an approach that allows it to build substantial customer loyalty. Through maintaining a strong focus on risk management and tailoring its offerings to the cultural nuances of the region, the company ensures steady profitability while fostering local economic growth. With a solid blend of tradition and innovation, Bank of Hawaii continues to be a pivotal player in the financial landscape of the region.
The story of Bank of Hawaii Corp is deeply woven into the economic and cultural fabric of Hawaii. Established in 1897, this venerable institution has grown alongside the islands, navigating economic ebbs and flows while maintaining its commitment to the community. As Hawaii's oldest and largest locally-owned bank, its operations are primarily concentrated in retail and commercial banking, delivering a wide array of financial services across not just Hawaii, but also select Pacific Islands. This includes offering checking and savings accounts, loans, and extensive wealth management and investment services.
The company's business model thrives on a robust deposit base, which enables it to Fund its lending activities. Loans range from personal and mortgage loans to commercial borrowing for local businesses. Critical to Bank of Hawaii's success is its focus on understanding local market dynamics and customer needs, an approach that allows it to build substantial customer loyalty. Through maintaining a strong focus on risk management and tailoring its offerings to the cultural nuances of the region, the company ensures steady profitability while fostering local economic growth. With a solid blend of tradition and innovation, Bank of Hawaii continues to be a pivotal player in the financial landscape of the region.
EPS Growth: Diluted EPS reached $1.39, up 63% year-over-year and 16% from last quarter, driven by margin improvement and net interest income expansion.
Net Interest Margin: Net interest margin improved for the seventh straight quarter to 2.61%, with management aiming for 2.90% by end of 2026.
Deposit Strength: Noninterest-bearing demand deposits grew 6.6% quarter-over-quarter, and deposit costs fell by 16 basis points.
Credit Quality: Credit metrics remain very strong, with low net charge-offs, declining nonperforming assets, and a diversified loan portfolio mostly secured by real estate.
Expense Outlook: Normalized noninterest expenses are forecast to rise 3% to 3.5% in 2026, with Q1 typically higher due to seasonality.
Shareholder Returns: Dividend of $0.70 per share declared, $5 million of stock repurchases in Q4 with plans to increase buybacks to $15–20 million per quarter.
