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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:
$74.00
â–²(20.17% Upside)
Bank of Hawaii's overall score is driven by a strong financial foundation and positive earnings call sentiment, highlighting earnings and margin growth. However, technical indicators suggest mixed momentum, and challenges in loan growth and deposit management present risks.
Positive Factors
Earnings and Margin Growth
Consistent growth in earnings and margins indicates strong financial performance and effective cost management, supporting long-term profitability.
Strong Credit Performance
Effective credit risk management ensures asset quality and minimizes potential losses, contributing to financial stability and investor confidence.
Improved Capital Ratios
Strong capitalization provides a buffer against economic downturns and supports growth initiatives, enhancing the bank's resilience and strategic flexibility.
Negative Factors
Disappointing Commercial Loan Growth
Stagnant commercial loan growth limits revenue potential and reflects challenges in expanding business lending, impacting future income streams.
Deposit Fluctuations
Fluctuating deposits can affect liquidity and interest income, posing risks to financial stability and operational efficiency in the long term.
Challenges in C&I Lending
Declines in C&I lending indicate difficulties in capturing business opportunities, potentially hindering revenue diversification and growth prospects.
Bank Of Hawaii (BOH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.46B
Dividend Yield4.54%
Average Volume (3M)406.80K
Price to Earnings (P/E)16.2
Beta (1Y)0.79
Revenue Growth2.74%
EPS Growth7.24%
CountryUS
Employees1,876
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.06
Shares Outstanding39,767,510
10 Day Avg. Volume476,807
30 Day Avg. Volume406,795
Financial Highlights & Ratios
PEG Ratio-1.15
Price to Book (P/B)1.69
Price to Sales (P/S)2.73
P/FCF Ratio16.65
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue2.85
Enterprise Value/Gross Profit4.58
Enterprise Value/Ebitda11.83
Forecast
1Y Price Target
$70.75Price Target Upside14.89% Upside
Rating ConsensusHold
Number of Analyst Covering4
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 several key streams. The primary source of income is net interest income, which comes from the interest earned on loans and investments, minus the interest paid on deposits and borrowings. This includes personal loans, mortgages, and commercial loans. Additionally, the bank earns non-interest income through fees for banking services, such as account maintenance fees, ATM fees, and transaction fees. Wealth management services also contribute to revenue through advisory fees and commissions. The bank has strategic partnerships, such as with investment firms and technology providers, that enhance its service offerings and customer reach, thus contributing to its overall earnings.
Bank Of Hawaii Earnings Call Summary
Earnings Call Date:Jul 28, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a solid performance with consecutive improvements in earnings and margins, strong credit performance, and robust capital ratios. However, it was tempered by challenges in commercial loan growth, deposit fluctuations, and C&I lending. The overall sentiment is cautiously optimistic with a need to address specific growth challenges.Q2-2025 Updates
Positive Updates
Earnings and Margin Growth
Earnings per share advanced for the fourth consecutive quarter. Net interest income and net interest margin expanded for the fifth consecutive quarter, indicating a positive trend in financial performance.
Strong Credit Performance
The loan portfolio remains strong with net charge-offs at just $2.6 million, down from the previous quarter. Nonperforming assets are stable, and the allowance for credit losses increased slightly, reflecting effective credit risk management.
Improved Capital Ratios
Capital ratios improved with Tier 1 capital at 14.2% and total risk-based capital at 15.2%, indicating strong capitalization.
Local Market Strength
The Hawaii employment picture continues to outperform the broader U.S. economy. Visitor expenditures are up 6.5% year-to-date, and residential real estate remains stable.
Negative Updates
Disappointing Commercial Loan Growth
The commercial loan growth was flat compared to the previous quarter, with a 6% year-on-year growth. This was driven by market uncertainty and higher prepayments.
Deposit Fluctuations
The deposit mix shift has been a challenge, with a $59 million shift impacting net interest income negatively. Deposits were down this quarter, attributed to seasonality.
Challenges in C&I Lending
Commercial and Industrial (C&I) lending showed a decline due to uncertainty in the market and unusually high prepayments.
Company Guidance
During the Bank of Hawaii's second-quarter 2025 earnings call, guidance was provided with a focus on several key metrics. The bank's earnings per share (EPS) increased for the fourth consecutive quarter, and both net interest income (NII) and net interest margin (NIM) expanded for the fifth consecutive quarter. The bank's capital improved to 14.2% on a Tier 1 basis, and return on common equity (ROCE) was at 12.5%. The bank has been successful in managing its deposit mix, maintaining stable overall deposit levels, and reducing the cost of interest-bearing deposits. A notable achievement was the cash flow from fixed/variable assets, which rolled off at a 4% rate and rolled on at a 6.3% rate. Additionally, the bank reported a net income of $47.6 million and a diluted EPS of $1.06, with noninterest income increasing to $44.8 million. Noninterest expenses were slightly up, including a severance-related charge of $1.4 million, with a forecasted increase of 2% to 3% for the year. The allowance for credit losses (ACL) ended at $148.5 million, and the effective tax rate was 21.2%. The bank's capital priorities included maintaining a hold on share buybacks and focusing on building demand deposit accounts (DDAs) for higher margins.Bank Of Hawaii Financial Statement Overview
Summary
Bank of Hawaii exhibits a solid financial foundation with consistent revenue growth and effective cost management. However, declining profitability margins and fluctuating cash flow growth present challenges. The balance sheet reflects a conservative financial strategy with low leverage, supporting long-term stability.Income Statement
Bank of Hawaii has demonstrated consistent revenue growth, with a notable increase in the TTM period. The gross profit margin remains strong, indicating efficient cost management. However, there is a declining trend in net profit margin and EBIT margin over the years, suggesting potential challenges in maintaining profitability levels.75
Positive
Balance Sheet
The company maintains a low debt-to-equity ratio in the TTM period, reflecting prudent financial leverage. Return on equity has decreased compared to previous years, indicating reduced profitability from shareholders' equity. The equity ratio remains stable, suggesting a solid capital structure.70
Positive
Cash Flow
Operating cash flow has shown improvement in the TTM period, with a strong operating cash flow to net income ratio. However, free cash flow growth has been volatile, and the free cash flow to net income ratio indicates that cash generation from operations is not fully translating into free cash flow.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.04B | 1.03B | 965.77M | 754.91M | 689.41M | 730.83M |
| Gross Profit | 648.76M | 621.19M | 643.42M | 705.90M | 710.49M | 562.93M |
| EBITDA | 251.20M | 229.37M | 260.11M | 323.85M | 358.13M | 221.61M |
| Net Income | 171.14M | 149.99M | 171.20M | 225.80M | 253.37M | 153.80M |
Balance Sheet | ||||||
| Total Assets | 23.71B | 23.60B | 23.73B | 23.61B | 22.78B | 20.60B |
| Cash, Cash Equivalents and Short-Term Investments | 3.08B | 2.62B | 3.41B | 3.17B | 4.47B | 4.07B |
| Total Debt | 700.61M | 747.07M | 805.37M | 1.24B | 564.09M | 768.48M |
| Total Liabilities | 21.97B | 21.93B | 22.32B | 22.29B | 21.17B | 19.23B |
| Stockholders Equity | 1.74B | 1.67B | 1.41B | 1.32B | 1.61B | 1.37B |
Cash Flow | ||||||
| Free Cash Flow | 155.30M | 168.77M | 140.82M | 304.20M | 354.78M | 113.13M |
| Operating Cash Flow | 174.29M | 178.45M | 150.22M | 332.96M | 377.15M | 146.42M |
| Investing Cash Flow | -540.20M | 20.99M | 562.79M | -1.25B | -2.42B | -2.37B |
| Financing Cash Flow | 209.25M | -436.81M | -113.84M | 761.79M | 1.99B | 2.28B |
Bank Of Hawaii Technical Analysis
Negative
61.58
Price Trends
65.69
Negative
65.70
Negative
66.57
Negative
Market Momentum
-1.27
Positive
38.58
Neutral
38.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BOH, the sentiment is Negative. The current price of 61.58 is below the 20-day moving average (MA) of 63.85, below the 50-day MA of 65.69, and below the 200-day MA of 66.57, indicating a bearish trend. The MACD of -1.27 indicates Positive momentum. The RSI at 38.58 is Neutral, neither overbought nor oversold. The STOCH value of 38.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $2.44B | 10.54 | 8.78% | 5.10% | 66.96% | 67.27% | |
72 Outperform | $2.66B | 17.96 | 6.31% | 2.39% | 5.70% | 18.72% | |
71 Outperform | $2.46B | 16.19 | 10.20% | 4.54% | 2.74% | 7.24% | |
71 Outperform | $2.58B | 12.82 | 9.30% | 4.30% | -5.14% | -0.70% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $2.57B | 15.53 | 13.49% | 2.99% | 10.28% | 22.73% | |
64 Neutral | $2.92B | 25.37 | 5.85% | 1.36% | 10.80% | -6.22% |
* Financial Sector Average
BOH
Bank Of Hawaii
61.58
-2.52
-3.93%
CVBF
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18.62
-0.19
-1.01%
PRK
Park National
159.45
-6.79
-4.08%
PFS
Provident Financial Services
18.82
0.70
3.86%
SBCF
Seacoast Banking Of Florida
30.11
3.74
14.18%
FBK
FB Financial
54.52
6.61
13.80%
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.