| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 1/6 |
| Past Performance | 5/6 |
| Financial Health | 6/6 |
| Dividends | 5/6 |
BOH Stock Overview
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.
Rewards
Risk Analysis
No risks detected for BOH from our risk checks.
Bank of Hawaii Corporation Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$83.82 |
| 52 Week High | US$92.38 |
| 52 Week Low | US$70.89 |
| Beta | 1.11 |
| 1 Month Change | 9.23% |
| 3 Month Change | 11.36% |
| 1 Year Change | -1.38% |
| 3 Year Change | 4.74% |
| 5 Year Change | 4.54% |
| Change since IPO | 657.82% |
Recent News & Updates
Bank of Hawaii: Say Aloha To Recovery And Rebound
Bank of Hawaii Corporation remains sturdy with its stable revenues and margins. It is well-positioned against economic disruptions with its excellent liquidity position. It has an adequate capacity to sustain its market expansion and dividend payments. The stock price has been in a sharp uptrend in the last two months but remains reasonable. Bank of Hawaii Corporation (NYSE: BOH) has seen a lot of macroeconomic downturns. Its recovery and rebound, are a testament to its reliance and growth potential. True to its promises, it is regaining its footing after some slippages in the last two years. It appears more enticing and conservative to hedge the blows of economic uncertainties. Revenues and margins are more stable and consistent with its asset-sensitive Balance Sheet. Its liquidity position remains stellar with its stable cash balances and financial leverage. So, it is no wonder that it can sustain its branch openings and dividend payments. In turn, the stock price adheres to sound fundamentals while remaining reasonable. Company Performance For over a century, Bank of Hawaii Corporation had been through crests and troughs. Economic downturns had a massive impact on many banks, and BOH was never an exemption. Even so, it managed to get through them. In the last two years, another crisis disrupted its flourishing operations. The pandemic limited its potential as interest rates fell to almost zero. It was logical since its loans were more interest-sensitive. Despite all these, it remains the largest bank in the state, with many shareholders living in the area. It is also one of those with the largest deposits in the state. It has become more conservative amidst the influx of willing borrowers in the last two years. Now, its prudence is paying off as it expands amidst inflation. Its interest income amounts to $139.56 million, a 7% year-over-year growth. Thanks to its conservative loan balance to capitalize on the rising interest rates. Its loans are more responsive to interest rate changes. A massive bulk of loans are from mortgages and home equity. Commercial and industrial loans are also interest-sensitive. So, the growth in loans is driving higher interest income. Both loan segments are larger today. But, its increased focus on more secure loans, such as commercial loans is vital for its stability. Its investment decisions are also wise, allowing it to derive more dividend income. Its securities are decreasing their appeal and value amidst the interest rate hikes. It is reasonable since higher interest rates affect mortgage-backed securities. Even so, its asset-sensitive Balance Sheet is working better in a high-interest environment. Its assets are well-positioned with a strong capital base and liquidity. It shows its impressive asset quality. In fact, ROAA is 1% vs 0.97%, showing it yields more returns today. ROAE is 18% vs 15% in the comparative quarter. Deleveraging is another core strength of the company. Borrowings are lower than in the comparative time series. It has a partial offsetting impact on the decrease in deposits. As such, interest expenses are lower at $6.7 million vs $7.9 million despite the interest rate hikes. Interest Income and Interest Expense (MarketWatch) Despite its robust performance, the company remains conservative to remain liquid. I will discuss more of its Balance Sheet in the succeeding part. With its high-yielding assets and well-managed borrowings, its revenues and expenses are stable. Its net interest margin without credit loan provisions is 95% vs 94% in 2Q 2021. Its non-interest segment remains stable so its operating margin without provisions of 52%. Operating Margin and Operating Margin Without Provisions (MarketWatch) Macroeconomic Factors Bank of Hawaii Corporation faces more external pressures as the economy reopens. The high-inflation environment has become more evident in the second quarter. In June, it had another all-time high at 9.1%. The pent-up demand and the disturbances in Europe are the primary driving forces. The supply chain disruptions also raise prices. To make it simple, the US economy sees a combination of pent-up demand and shortages. So, it raised the price further in the first half. But now, inflation seems to be going into a summer lull as it stays lower at 8.5%. Inflation may be affecting the demand elasticity as more consumers adjust their spending. Even so, I still project the inflation rate to reach 9.6%, given the uncertainty. In the following years, I expect the pandemic fears to subside. I expect the economy to be more flexible, so inflation may decrease from 9% to 5.2%. It is still higher than pre-pandemic levels, which is still logical. The interest and mortgage rates are going in the same direction. A series of hikes are expected to stabilize inflation. Also, the Fed has already raised 75 basis points in June. It may speed up in the second half as shortages become more evident, raising prices further. So, the interest rate may peak at 3.4% this year. It is already higher than the previous estimations. Meanwhile, the mortgage rate is at 5.7%, which is already higher than the estimation of 5.1-5.3%. With that, analysts expect it to be even higher at 7%. But in the following years, I expect them to have a gradual decrease as inflation may become lower. Although higher than pre-pandemic levels, they may become more stable. Inflation Rate, Interest Rate, and Mortgage Rate (Author Estimation, Barron's, and Forbes) Fortunately, BOH is working better in the high inflation environment. It capitalizes on higher interest and mortgage rates to generate more returns. Its interest-sensitive assets are generating more returns except for its securities. But, its stable deposits and borrowings enhance its risk tolerance and capital preservation. Currently, it continues to take the lead in Hawaii as its primary market. SMEs are also bouncing back, one of the primary markets. The housing and automobile boom persists despite the slight decrease in spending. Transactions are more client-facing with improved digital capabilities. It allows it to manage its operating capacity and cater to more customers. It is also in line with its expansion and enhanced user experience. Why Bank of Hawaii Corporation May Remain Sturdy The performance of BOH appears to be more robust this year. Its rebound is more sustainable, matched with its expansion. It continues to diversify and improve the quality of its asset-sensitive portfolio. It has a better liquidity position and risk tolerance. The uptrend in the C&I and mortgage segment allows it to take advantage of higher rates. Also, its enhanced digital market presence may help it capture and keep more clients. It also enjoys its high-yielding loans, especially mortgage and housing equity loans. As such, it is logical for it to take advantage of the situation and raise its loan volume. Even better, it has an excellent liquidity position with a loan-to-deposit ratio of only 61%. It is way lower than the average ratio of 70-90%, making it more conservative. It has more room to loan out to more borrowers without risking its liquidity. Also, its loan provision is 1.16%. Although it is lower than the comparative quarter, it remains ideal for banks of its size. Likewise, deposits are higher but stable, which is ideal in a high-interest environment. Loans, Deposits, and Loan-to-Deposit Ratio (MarketWatch) Meanwhile, cash and investments comprise 41% of the total assets, so it is very liquid. Its cash levels are stable, allowing it to sustain its operations. Deleveraging is another attribute of its impressive liquidity. The total borrowings today are 26% lower than in 2Q 2021. So, the percentage of cash and cash equivalents to borrowings is 49% vs 38% in 2Q 2021. Its Net Debt/EBITDA is only about 1.4x, so the bank earns enough to cover its borrowings. Cash and Cash Equivalents and Borrowings (MarketWatch) Given its stellar Balance Sheet, BOH is well-positioned against economic disruptions. It can sustain its current size and expansion while remaining liquid and viable. In fact, it made another branch open in the state, increasing its operating capacity. Stock Price Assessment The stock price of Bank of Hawaii Corporation has been in a sharp uptrend in the last two months. It is already the same as the price at the start of the year, making it reasonable. At $84.03, it is 17% higher than the most recent dip. But, it still appears reasonable at an earnings multiple of 14x. Its Price-to-Cash Flow Ratio is 10.47.
Bank of Hawaii (NYSE:BOH) Will Pay A Dividend Of $0.70
Bank of Hawaii Corporation's ( NYSE:BOH ) investors are due to receive a payment of $0.70 per share on 15th of...
Shareholder Returns
| BOH | US Banks | US Market | |
|---|---|---|---|
| 7D | -0.06% | 1.6% | 1.4% |
| 1Y | -1.4% | -7.2% | -8.4% |
Return vs Industry: BOH exceeded the US Banks industry which returned -7.2% over the past year.
Return vs Market: BOH exceeded the US Market which returned -8.4% over the past year.
Price Volatility
| BOH volatility | |
|---|---|
| BOH Average Weekly Movement | 3.4% |
| Banks Industry Average Movement | 3.6% |
| Market Average Movement | 7.6% |
| 10% most volatile stocks in US Market | 17.1% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: BOH is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: BOH's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1897 | 5,110 | Peter Ho | https://www.boh.com |
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.
Bank of Hawaii Corporation Fundamentals Summary
| BOH fundamental statistics | |
|---|---|
| Market Cap | US$3.37b |
| Earnings (TTM) | US$230.67m |
| Revenue (TTM) | US$705.02m |
14.6x
P/E Ratio2.9x
P/B RatioIs BOH overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| BOH income statement (TTM) | |
|---|---|
| Revenue | US$705.02m |
| Cost of Revenue | US$0 |
| Gross Profit | US$705.02m |
| Other Expenses | US$474.35m |
| Earnings | US$230.67m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 5.74 |
| Gross Margin | 100.00% |
| Net Profit Margin | 32.72% |
| Debt/Equity Ratio | 39.5% |
How did BOH perform over the long term?
See historical performance and comparisonDividends
3.3%
Current Dividend Yield48%
Payout RatioDoes BOH pay a reliable dividends?
See BOH dividend history and benchmarks| Bank of Hawaii dividend dates | |
|---|---|
| Ex Dividend Date | Aug 30 2022 |
| Dividend Pay Date | Sep 15 2022 |
| Days until Ex dividend | 10 days |
| Days until Dividend pay date | 26 days |
Does BOH pay a reliable dividends?
See BOH dividend history and benchmarks