Is Bank of Hawaii's Improved Profitability and Completed Buyback Changing the Investment Case for BOH?

• Bank of Hawaii Corporation reported higher net interest income and net income for the third quarter ended September 30, 2025, alongside a quarterly cash dividend affirmation and disclosure of stable loan charge-offs during the period.
• An interesting detail is that the bank completed a share repurchase program dating back to 2011, having repurchased over 10.79 million shares for US$695.67 million, representing nearly one-quarter of its shares under that plan.
• We’ll examine how improved profitability and the completion of the share buyback program may affect Bank of Hawaii’s investment outlook.

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Bank of Hawaii Investment Narrative Recap

To be a Bank of Hawaii shareholder, you need to believe in the stability of Hawaii’s economy, the resilience of its real estate market, and the bank’s well-established local franchise. The latest news, highlighting steady net interest income, stable loan charge-offs, and completion of a long-running share buyback, does not materially shift the most important short-term catalyst, which remains credit quality and local loan growth, nor does it diminish the prominent risk of heavy market concentration within Hawaii.

Among the recent announcements, the board’s decision to affirm a quarterly cash dividend of US$0.70 per share is especially relevant for income-focused investors. This continued commitment to capital returns underscores the bank’s confidence in its balance sheet, even as ongoing resilience in net earnings remains the key catalyst for investor sentiment.

In contrast, investors should also be mindful of the concentration risk that comes from having more than 90% of loans tied to Hawaii’s economy…

Read the full narrative on Bank of Hawaii (it's free!)

Bank of Hawaii's narrative projects $850.6 million revenue and $251.7 million earnings by 2028. This requires 9.0% yearly revenue growth and a $99.8 million earnings increase from $151.9 million.

Uncover how Bank of Hawaii's forecasts yield a $70.50 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Two distinct Simply Wall St Community members estimate Bank of Hawaii’s fair value anywhere from US$70.50 up to US$106,031.19. While views diverge sharply, remember that local economic or property downturns could challenge the bullish case for stable earnings and asset quality.

Explore 2 other fair value estimates on Bank of Hawaii - why the stock might be a potential multi-bagger!

Build Your Own Bank of Hawaii Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Bank of Hawaii research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Bank of Hawaii research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Bank of Hawaii's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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