Financial Performance - Diluted earnings per common share for Q1 2025 were $0.97, up 14.1% from the linked quarter and up 11.5% from the same period last year[3] - Net income for Q1 2025 was $44.0 million, representing a 12.3% increase from the linked quarter and a 20.9% increase year-over-year[3] - Basic earnings per common share increased to $0.98 in Q1 2025, up from $0.86 in Q4 2024 and $0.87 in Q1 2024[32] - Net income for Q1 2025 reached $43,985,000, representing a 12.5% increase from $39,162,000 in Q4 2024 and a 20.9% increase from $36,391,000 in Q1 2024[32] - Net income for the three months ended March 31, 2025, was $43.985 million, compared to $36.391 million for the same period in 2024, representing an increase of 20.5%[46] Income and Expenses - Net interest income for Q1 2025 was $125.8 million, an increase of 4.7% from the linked quarter and 10.4% from the same period last year[4] - Noninterest income was $44.1 million in Q1 2025, a 2.3% increase from the linked quarter and a 4.2% increase year-over-year[8] - Total noninterest income for Q1 2025 was $44,058,000, a slight increase from $43,047,000 in Q4 2024 and $42,285,000 in Q1 2024[32] - Total noninterest expense rose to $110,459,000 in Q1 2025, compared to $107,931,000 in Q4 2024 and $105,859,000 in Q1 2024[32] - The efficiency ratio improved to 65.03% in Q1 2025 from 66.12% in Q4 2024 and 67.76% in Q1 2024[30] Assets and Liabilities - Total assets reached $23.9 billion at March 31, 2025, up 1.2% from December 31, 2024, and up 2.0% from March 31, 2024[16] - Total assets as of March 31, 2025, were $23,885,056,000, an increase from $23,601,114,000 in Q4 2024 and $23,420,860,000 in Q1 2024[30] - Total liabilities stood at $22,180,121 thousand, an increase from $21,933,340 thousand, representing a growth of 1.1%[34] - Shareholders' equity increased to $1,704,935 thousand, up from $1,667,774 thousand, marking a growth of 2.2%[35] Loans and Deposits - Total loans and leases were $14.1 billion at March 31, 2025, an increase of 0.3% from the linked quarter and 1.9% year-over-year[18] - Total deposits amounted to $21.0 billion at March 31, 2025, reflecting a 1.8% increase from December 31, 2024, and a 1.6% increase from March 31, 2024[19] - Total loans and leases increased to $14,115,323 thousand as of March 31, 2025, up from $14,075,980 thousand at December 31, 2024, representing a growth of 0.28%[41] - Total deposits rose to $21,008,217 thousand as of March 31, 2025, compared to $20,633,037 thousand at December 31, 2024, marking an increase of 1.82%[42] Capital Ratios - The Tier 1 Capital Ratio was 13.93% at March 31, 2025, slightly down from 13.95% at December 31, 2024, but up from 12.74% a year ago[21] - The common equity tier 1 capital ratio was 11.58% as of March 31, 2025, slightly down from 11.59% in Q4 2024 but up from 11.50% in Q1 2024[31] Credit Quality - Non-performing assets decreased to $17,451,000 in Q1 2025 from $19,300,000 in Q4 2024, but increased from $11,838,000 in Q1 2024[30] - The ratio of non-performing assets to total assets was 0.07% as of March 31, 2025, unchanged from the previous quarter[44] - The allowance for credit losses decreased to $147,707 thousand from $148,528 thousand, reflecting a reduction of 0.5%[34] - Total provision for credit losses for the first quarter of 2025 was $3.250 million, a decrease from $3.750 million in the previous quarter[45] Market Conditions - The unemployment rate in Hawaii was 2.9% as of March 31, 2025, down from 3.0% in December 2024, indicating a positive trend in the labor market[48]

Core Insights - Bank of Hawaii (BOH) reported revenue of $169.87 million for the quarter ended March 2025, reflecting an 8.7% increase year-over-year, with EPS at $0.97 compared to $0.87 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $167.66 million by 1.32%, and the EPS also surpassed the consensus estimate of $0.89 by 8.99% [1] Financial Performance Metrics - Total Non-Performing Assets were reported at $17.45 million, slightly below the average estimate of $17.86 million [4] - Total Non-Accrual Loans and Leases stood at $16.09 million, above the average estimate of $15.20 million [4] - Net Interest Margin was reported at 2.3%, matching the average estimate [4] - Average Balance of Total Interest Earning Assets was $22.02 billion, below the average estimate of $22.31 billion [4] - Net Charge-offs to Average Loans were at 0.1%, consistent with the average estimate [4] - Efficiency Ratio was reported at 65%, better than the average estimate of 67% [4] - Net Interest Income (FTE) was $127.30 million, exceeding the average estimate of $124.33 million [4] - Annuity and Insurance revenue was $1.56 million, above the average estimate of $1.48 million [4] - Bank-Owned Life Insurance revenue was $3.61 million, slightly below the average estimate of $3.68 million [4] - Trust and Asset Management revenue was $11.74 million, below the average estimate of $12.09 million [4] - Mortgage Banking revenue was $0.99 million, below the average estimate of $1.11 million [4] - Net Interest Income was reported at $125.81 million, exceeding the average estimate of $123.01 million [4] Stock Performance - Shares of Bank of Hawaii have returned -5% over the past month, compared to a -5.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - Bank of Hawaii (BOH) reported quarterly earnings of $0.97 per share, exceeding the Zacks Consensus Estimate of $0.89 per share, and up from $0.87 per share a year ago, representing an earnings surprise of 8.99% [1] - The company posted revenues of $169.87 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.32%, compared to year-ago revenues of $156.22 million [2] Group 2: Stock Performance and Outlook - Bank of Hawaii shares have declined approximately 8.8% since the beginning of the year, while the S&P 500 has decreased by 10.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.96 on revenues of $170.3 million, and for the current fiscal year, it is $3.91 on revenues of $687.39 million [7] Group 3: Industry Context - The Zacks Industry Rank for Banks - West is currently in the top 36% of over 250 Zacks industries, indicating that the industry is performing relatively well [8]

Core Viewpoint - Bank of Hawaii (BOH) is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended March 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The earnings report is scheduled for release on April 21, 2025, and could lead to a stock price increase if the reported figures exceed expectations, while missing estimates may result in a decline [2]. - The consensus estimate for BOH's quarterly earnings is $0.89 per share, reflecting a year-over-year change of +2.3%, with expected revenues of $167.66 million, up 7.3% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial projections during this period [4]. - The Most Accurate Estimate for BOH is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.83%, suggesting a bearish outlook from analysts [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model compares the Most Accurate Estimate to the Zacks Consensus Estimate, with a positive Earnings ESP indicating a higher likelihood of an earnings beat, particularly when combined with a strong Zacks Rank [6][8]. - BOH currently holds a Zacks Rank of 3, making it challenging to predict a consensus EPS beat [11]. Historical Performance - In the last reported quarter, BOH was expected to post earnings of $0.87 per share but delivered $0.85, resulting in a surprise of -2.30% [12]. - Over the past four quarters, BOH has surpassed consensus EPS estimates two times [13]. Conclusion - While BOH does not appear to be a strong candidate for an earnings beat, investors should consider other factors when deciding on their investment strategy ahead of the earnings release [16].

Group 1 - The individual has nearly two decades of experience in the logistics sector and almost a decade in stock investing and macroeconomic analysis, focusing on ASEAN and NYSE/NASDAQ stocks, particularly in banks, telecommunications, logistics, and hotels [1] - Since 2014, the individual has been trading on the Philippine stock market, initially investing in blue-chip companies and later diversifying across various industries and market capitalizations [1] - In 2020, the individual entered the US market after gaining experience through a relative's trading account, leading to the decision to open their own account and write for Seeking Alpha to share knowledge [1] Group 2 - The individual holds investments in US banks, hotels, shipping, and logistics companies, utilizing analyses from Seeking Alpha to compare with the Philippine market [1]

Group 1 - The macro environment for the Bank of Hawaii (BOH) has improved significantly since the last update, with interest rate cuts positively impacting the bank's performance [1] - The bank's previous balance sheet dynamics have been a concern, but recent changes indicate a more favorable outlook [1] Group 2 - The investment strategy focuses on a long-term, buy-and-hold approach, particularly favoring stocks that can deliver sustainable high-quality earnings [1] - The emphasis is on dividend and income stocks, with a specific interest in US and Canadian equities as well as UK names [1]

Group 1 - The stock of Bank of Hawaii (BOH) is experiencing significant attention due to high implied volatility in the options market, particularly the Apr 17, 2025 $55.00 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Bank of Hawaii's stock price, potentially due to an upcoming event [2] - Bank of Hawaii currently holds a Zacks Rank 1 (Strong Buy) in the Banks-West industry, which is in the top 11% of the Zacks Industry Rank, indicating strong analyst sentiment [3] Group 2 - Over the past 60 days, two analysts have raised their earnings estimates for Bank of Hawaii for the current quarter, resulting in a consensus estimate increase from 80 cents per share to 89 cents per share [3] - The high implied volatility may indicate a trading opportunity, as options traders often seek to sell premium on options with high implied volatility, hoping the stock does not move as much as expected by expiration [4]

Group 1: Urban Outfitters, Inc. (URBN) - Urban Outfitters has a Zacks Rank 1 and the Zacks Consensus Estimate for its current year earnings increased by 8.1% over the last 60 days [1] - The company's shares gained 9.9% over the last three months, while the S&P 500 declined by 5.3% [1] - Urban Outfitters possesses a Momentum Score of A [1] Group 2: Matson, Inc. (MATX) - Matson has a Zacks Rank 1 and the Zacks Consensus Estimate for its current year earnings increased by 14.4% over the last 60 days [2] - The company's shares gained 6.2% over the last six months, compared to the S&P 500's advance of 4.8% [2] - Matson possesses a Momentum Score of A [2] Group 3: Bank of Hawaii Corporation (BOH) - Bank of Hawaii has a Zacks Rank 1 and the Zacks Consensus Estimate for its current year earnings increased by 14.9% over the last 60 days [3] - The company's shares gained 8.5% over the last six months, while the S&P 500 advanced by 4.8% [3] - Bank of Hawaii possesses a Momentum Score of A [3]

Group 1 - Sonoco Products Company (SON) has seen a Zacks Consensus Estimate for its current year earnings increase by 8.7% over the last 60 days and offers a dividend yield of 4.5%, significantly higher than the industry average of 2.3% [1] - Bank of Hawaii Corporation (BOH) has experienced a 14.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days, with a dividend yield of 4%, compared to the industry average of 2.8% [2] - Hancock Whitney Corporation (HWC) has had a 6.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]

Loan Portfolio and Credit Quality - The company's loan portfolio is significantly secured by real estate, with residential mortgage loans totaling $4.6 billion (32.9% of total loans) and commercial mortgage loans at approximately $4.0 billion (28.6% of total loans) as of December 31, 2024[64]. - Non-performing assets were reported at $19.3 million, or 0.14% of total loans and leases, while criticized loans amounted to $296.2 million, or 2.10% of total loans and leases as of December 31, 2024[75]. - The company's loans and leases portfolio totaled $14.1 billion with an allowance for credit losses of $148.5 million as of December 31, 2024[331]. - The total loans and leases as of December 31, 2024, amounted to $14,075.9 million, an increase from $13,965.0 million in 2023, reflecting a growth of approximately 0.79%[441]. - The total commercial loans reached $6,125.4 million in 2024, up from $5,777.48 million in 2023, representing an increase of about 6%[441]. - Consumer loans totaled $7,950.57 million in 2024, compared to $8,187.54 million in 2023, showing a decrease of approximately 2.9%[441]. - Residential mortgage loans were $4,628.28 million in 2024, slightly down from $4,684.17 million in 2023, a decline of about 1.2%[441]. - The total amount of classified residential mortgage loans was $3,995,000[436]. - The company reported a total of 9,566 non-accrual loans in the consumer segment for 2024, compared to 6,726 in 2023, marking an increase of approximately 42%[443]. Economic and Regulatory Environment - The company is closely monitoring the economic conditions in Hawaiʻi and the West Pacific, as these factors significantly impact loan origination and repayment capabilities[63]. - A prolonged period of high inflation could adversely affect the company's profitability and operational costs, particularly due to the reliance on imported goods[66]. - The company faces risks from potential reductions in U.S. military spending, which is a critical component of the economies in Hawaiʻi and the West Pacific[70]. - Changes in interest rates are expected to influence the company's earnings, as they affect the spread between interest earned on loans and interest paid on deposits[71]. - The Company is subject to extensive regulation by federal bank regulatory agencies, which affects its lending practices, capital structure, and growth[85]. - Increased compliance costs due to the Dodd-Frank Act and other consumer protection laws may adversely affect the Company's financial condition[86]. - The Company is evaluating the potential impact of regulatory proposals on its liquidity and capital management strategies, particularly those under the Dodd-Frank Act[83]. Financial Performance - Net income for 2024 was $149.99 million, a decrease of 12.3% compared to $171.20 million in 2023[338]. - Total interest income increased to $863.8 million in 2024, up from $810.4 million in 2023, reflecting a growth of approximately 6.6%[337]. - The net interest income after provision for credit losses was $455.43 million in 2024, down from $488.03 million in 2023, a decrease of approximately 6.7%[337]. - Basic earnings per common share decreased to $3.48 in 2024 from $4.16 in 2023, a decline of about 16.4%[337]. - Total assets decreased slightly to $23.60 billion in 2024 from $23.73 billion in 2023[336]. - Total deposits fell to $20.63 billion in 2024, down from $21.06 billion in 2023, representing a decline of about 2.0%[336]. - The provision for credit losses was $11.15 million in 2024, compared to $9 million in 2023, indicating a rise of approximately 23.9%[337]. Dividends and Shareholder Equity - The company paid cash dividends of $112.3 million on common shares during 2024, with a quarterly cash dividend of $0.70 per share declared in January 2025[82]. - The company’s ability to declare dividends is subject to regulatory limitations and the financial performance of the bank[81]. - Total shareholders' equity increased to $1.67 billion in 2024 from $1.41 billion in 2023, reflecting a growth of approximately 18.0%[336]. Risk Management and Compliance - The company has expressed concerns regarding the impact of climate change on its operations and the financial condition of its customers, which could lead to increased credit losses[68]. - Cybersecurity threats and attacks pose significant risks to the Company's operations and could result in financial losses and reputational damage[100]. - The Company is subject to greater regulatory scrutiny, which could lead to increased costs and potential reputational harm if compliance is not met[87]. - Changes in capital, leverage, and liquidity requirements could materially affect the Company's future operations and ability to conduct certain activities[91]. - The Company may face penalties or be required to repurchase mortgages if it fails to meet servicing obligations or if servicing standards change[106]. Investment Securities - As of December 31, 2024, the total fair value of the company's investment securities was $2.69 billion, with an amortized cost of $2.95 billion, resulting in gross unrealized losses of $259.14 million[419]. - The company reported net losses on sales of investment securities amounting to $7.51 million for the year ended December 31, 2024, compared to net losses of $11.46 million in 2023[423]. - The company's held-to-maturity investment securities had a total fair value of $3.82 billion as of December 31, 2024, with an amortized cost of $4.62 billion, reflecting gross unrealized losses of $743.73 million[421]. - The company does not believe that the unrealized losses in AFS debt securities represent credit loss impairment, as they are primarily due to interest rate changes[424]. - The company intends to hold the investment securities in unrealized loss positions until recovery of their amortized cost basis, indicating a long-term investment strategy[424]. Loan Modifications and Foreclosures - Loan modifications for borrowers experiencing financial difficulty included term extensions and interest rate reductions, aimed at minimizing economic loss[446]. - The company continues to focus on strategies to manage non-accrual loans and enhance loan performance through various modification options[446]. - Foreclosure proceedings for consumer mortgage loans totaled $6.8 million as of December 31, 2024, compared to $4.9 million in 2023[454].