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Bank Of Hawaii
(NYSE:BOH)
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Rating:76Outperform
Price Target:
$78.00
â–²(1.00% Upside)
Action:Reiterated
Date:07/28/26
BOH scores well primarily on healthy financial performance (solid profitability, very low current leverage, and strong cash generation) and a constructive, confidence-building earnings outlook (continued NIM expansion guidance, strong credit, and ongoing buybacks/dividend). The main offsets are weaker near-term technicals (trading below the 20-day average) and funding-related headwinds highlighted on the call (deposit competition and planned runoff of higher-cost public deposits). Valuation is reasonable with a mid-teens P/E and a ~3.5% dividend yield.
Positive Factors
Net interest margin expansion
Sustained NIM expansion indicates improving earning-asset economics and better spread management, supporting net interest income over the next several quarters. Management’s year-end target also suggests the improvement is expected to persist rather than reflect only a single-quarter benefit.
Negative Factors
Deposit competition and runoff
Competitive deposit pricing can keep funding costs elevated and limit future margin gains, even as asset yields improve. Planned runoff of higher-cost public deposits may also temporarily reduce funding available for earning assets and constrain balance-sheet growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Net interest margin expansion
Sustained NIM expansion indicates improving earning-asset economics and better spread management, supporting net interest income over the next several quarters. Management’s year-end target also suggests the improvement is expected to persist rather than reflect only a single-quarter benefit.
Read all positive factors
Bank Of Hawaii (BOH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.73B
Dividend Yield4.12%
Average Volume (3M)388.46K
Price to Earnings (P/E)12.6
Beta (1Y)0.68
Revenue Growth1.90%
EPS Growth41.02%
CountryUS
Employees1,877
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.41
Shares Outstanding39,450,397
10 Day Avg. Volume607,249
30 Day Avg. Volume388,457
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)1.46
Price to Sales (P/S)2.55
P/FCF Ratio14.71
Enterprise Value/Market Cap1.38
Enterprise Value/Revenue3.51
Enterprise Value/Gross Profit5.05
Enterprise Value/Ebitda11.64
Forecast
1Y Price Target
$85.67Price Target Upside10.92% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)5.98
Revenue Forecast (FY)$801.87M
Bank Of Hawaii Business Overview & Revenue Model
Company Description
Bank of Hawaii Corporation (BOH) functions as the holding company for Bank of Hawaii, delivering a comprehensive array of financial products and services across Hawaii, Guam, and the broader Pacific Islands. Its operations are organized into three...
How the Company Makes Money
BOH primarily makes money through (1) net interest income and (2) noninterest (fee-based) income. Net interest income is generated by earning interest on loans and interest-earning assets (such as consumer and commercial loans, residential and com...
Bank Of Hawaii Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive operational and financial trajectory: sequential earnings and EPS growth, continued NIM expansion (ninth consecutive quarter), strong credit metrics, wealth management momentum, disciplined capital returns (dividends and buybacks), and robust capital ratios. Headwinds are manageable and largely tactical — modest seasonal deposit declines, elevated deposit competition and targeted runoff of high-cost public deposits, a one-off increase in criticized assets tied to a single borrower, and expected moderation in consumer loan growth in Q3. Overall, strengths materially outweigh the near-term and manageable challenges.Positive Updates
Earnings and EPS Improvement
Diluted EPS of $1.47 and net income of $63.8 million, up 13% and 11% respectively from the prior quarter; return on average common equity improved to 15.5%.
Negative Updates
Modest Deposit Decline and Elevated Deposit Competition
Average deposits declined modestly in Q2 (seasonal pattern); management noted elevated competitive environment for deposits which may limit near-term deposit cost improvement.
Read all updates
Q2-2026 Updates
Positive
Negative
Earnings and EPS Improvement
Diluted EPS of $1.47 and net income of $63.8 million, up 13% and 11% respectively from the prior quarter; return on average common equity improved to 15.5%.
Read all positive updates
Company Guidance
Management guided to an exit NIM of about 2.90% by year‑end (Q2 NIM was 2.78%, up 4 bps q/q) assuming one 25‑bp hike in mid‑September, with NII of $153.6M in Q2 (up $2.6M q/q) and yield on earning assets improving ~5 bps; they expect deposit costs to settle around 1.25%–1.30% (Q2 cost 127 bps; spot ~126 bps) and an ultimate deposit beta near 34% (this quarter ~35.5%), with roughly 10%–15% of ~$2B public deposits running off in Q3; full‑year loan growth is still expected in the lower mid‑single digits (Q2 loans +$94M, annualized ~2.6%), ACL was $147M (ACL/loans 1.03%) with a PCL of $3.6M this quarter, net charge‑offs annualized ~10 bps, NPAs 8 bps and delinquencies 41 bps; Q3 normalized non‑interest income is forecast ~ $43M, normalized non‑interest expense ~ $112.5M, roughly $20M of buybacks planned for Q3 (another ~$20M penciled for Q4) with $89M remaining authorization, a declared common dividend of $0.70, and capital ratios well above regulatory minimums (Tier 1 14.5%, total risk‑based 15.5%).Bank Of Hawaii Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
83
Very Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.08B | 1.06B | 1.03B | 965.77M | 754.91M | 689.41M |
| Gross Profit | 749.23M | 699.83M | 621.19M | 643.42M | 705.90M | 710.49M |
| EBITDA | 324.96M | 292.36M | 229.37M | 260.11M | 323.85M | 358.13M |
| Net Income | 235.51M | 205.90M | 149.99M | 171.20M | 225.80M | 253.37M |
Balance Sheet | ||||||
| Total Assets | 23.84B | 24.18B | 23.60B | 23.73B | 23.61B | 22.78B |
| Cash, Cash Equivalents and Short-Term Investments | 452.81M | 946.52M | 2.62B | 3.41B | 3.17B | 4.47B |
| Total Debt | 93.57M | 92.40M | 747.07M | 805.37M | 1.24B | 564.09M |
| Total Liabilities | 21.97B | 22.33B | 21.93B | 22.32B | 22.29B | 21.17B |
| Stockholders Equity | 1.88B | 1.85B | 1.67B | 1.41B | 1.32B | 1.61B |
Cash Flow | ||||||
| Free Cash Flow | 264.79M | 184.28M | 168.77M | 140.82M | 304.20M | 354.78M |
| Operating Cash Flow | 255.85M | 218.34M | 178.45M | 150.22M | 332.96M | 377.15M |
| Investing Cash Flow | -459.81M | -403.09M | 20.99M | 562.79M | -1.25B | -2.42B |
| Financing Cash Flow | -133.98M | 367.70M | -436.81M | -113.84M | 761.79M | 1.99B |
Bank Of Hawaii Technical Analysis
Negative
77.23
Price Trends
76.04
Negative
77.46
Negative
75.43
Negative
Market Momentum
-2.12
Positive
27.73
Positive
19.78
Positive
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 77.23 is above the 20-day moving average (MA) of 72.99, above the 50-day MA of 76.04, and above the 200-day MA of 75.43, indicating a bearish trend. The MACD of -2.12 indicates Positive momentum. The RSI at 27.73 is Positive, neither overbought nor oversold. The STOCH value of 19.78 is Positive, 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 31 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 | $2.73B | 12.57 | 12.78% | 4.12% | 1.90% | 41.02% | |
76 Outperform | $937.72M | 11.57 | 14.00% | 3.19% | 5.05% | 39.76% | |
69 Neutral | $3.07B | 10.79 | 10.27% | 4.15% | 1.51% | 19.06% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $3.43B | 10.96 | 9.55% | 5.28% | -5.41% | 45.98% | |
65 Neutral | $2.28B | 9.23 | 8.50% | 3.58% | -4.62% | 21.13% | |
51 Neutral | $2.81B | -42.80 | -0.62% | 2.62% | -12.90% | -161.70% |
* Financial Sector Average
BOH
Bank Of Hawaii
68.03
4.74
7.50%
CPF
Central Pacific Financial
36.34
6.79
22.98%
FIBK
First Interstate Bancsystem
35.62
5.24
17.25%
BANC
Banc of California
17.55
0.18
1.01%
WAFD
Washington Federal
30.17
1.20
4.14%
FHB
First Hawaiian
25.04
1.20
5.02%
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.