Bank of Hawaii (BOH) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on April 21, 2025, might help the stock move higher if these key numbers are better than e ...

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].

Core Viewpoint - Bank of Hawaii (BOH) shows potential as a strong investment opportunity due to significant upward revisions in earnings estimates, indicating a positive earnings outlook and potential for continued stock price appreciation [1][2]. Current-Quarter Estimate Revisions - The expected earnings per share for the current quarter is $0.88, reflecting a year-over-year increase of +1.15% - The Zacks Consensus Estimate for Bank of Hawaii has risen by 11.11% over the past 30 days, with one estimate increasing and no negative revisions [4]. Current-Year Estimate Revisions - For the full year, the expected earnings per share is $3.87, representing a change of +9.63% from the previous year - In the last month, four estimates have been revised upward, contributing to an 11.93% increase in the consensus estimate with no negative revisions [5]. Favorable Zacks Rank - The positive estimate revisions have led to Bank of Hawaii achieving a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance - Research indicates that stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500 [6]. Bottom Line - Strong estimate revisions have resulted in a 6.7% increase in Bank of Hawaii's stock price over the past four weeks, suggesting further upside potential and making it a candidate for portfolio addition [7].

Core Viewpoint - Bank of Hawaii (BOH) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2][4]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, making it a valuable tool for investors [2][3]. - For Bank of Hawaii, the increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to higher stock prices [4]. Earnings Estimate Revisions - Bank of Hawaii is projected to earn $3.77 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 6.8% [7]. - Over the past three months, the Zacks Consensus Estimate for Bank of Hawaii has risen by 11%, indicating a positive trend in earnings expectations [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - The upgrade of Bank of Hawaii to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting strong potential for market-beating returns in the near term [9].

Core Viewpoint - Bank of Hawaii Corporation (BOH) reported mixed financial results for the fourth quarter of 2024, with adjusted earnings per share (EPS) missing estimates, while net income showed year-over-year growth despite a decline in full-year performance [1][2][3]. Financial Performance - Fourth-quarter adjusted EPS was 85 cents, below the Zacks Consensus Estimate of 87 cents, but improved from 72 cents in the same quarter last year [1] - For 2024, adjusted EPS was $3.46, missing the Zacks Consensus Estimate of $3.54 and down from $4.14 in the previous year [2] - Net income on a GAAP basis for the fourth quarter was $39.2 million, up 28.8% year over year, exceeding the estimate of $37.3 million [3] - Full-year net income was $150 million, a decline of 12.4% year over year [3] Revenue and Expenses - Quarterly revenues increased 3.3% year over year to $163.2 million, but fell short of the Zacks Consensus Estimate of $164.4 million [4] - Full-year revenues totaled $466.6 million, down 30.7% year over year, missing the estimate of $640.3 million [4] - Non-interest income was $43 million, up 1.8% year over year, with adjusted figures showing a 7.5% increase [6] - Non-interest expenses decreased 6.9% to $107.9 million, but adjusted expenses increased 4.9% year over year [7] Interest Income and Efficiency - Net interest income (NII) was $117.6 million, up 3.8% year over year, with a net interest margin (NIM) of 2.19%, an increase of 6 basis points [5] - The efficiency ratio improved to 66.12%, down from 73.36% in the prior year, indicating enhanced profitability [8] Loan and Deposit Trends - Total loans and leases increased 1.1% quarter-over-quarter to $14.1 billion, exceeding estimates [9] - Total deposits decreased 1.6% sequentially to $20.6 billion, falling short of estimates [9] Credit Quality - Non-performing assets rose 64.3% year over year to $19.3 million, significantly above estimates [10] - Net loans and lease charge-offs increased to $3.4 million, up $1.7 million from the previous year [10] - Provision for credit losses was $3.8 million, a 50% increase year over year [11] Capital Ratios - Tier 1 capital ratio improved to 13.95%, up from 12.56% a year ago, while the total capital ratio rose to 15% from 13.6% [12] Profitability Ratios - Return on average assets was 0.66%, up from 0.51% in the prior year, and return on average shareholders' equity increased to 9.42% from 8.86% [13] Share Repurchase - No shares were repurchased during the quarter, with a remaining buyback authority of $126 million as of December 31, 2024 [14] Overall Assessment - The rise in NII and fee income supports top-line growth, while lower expenses and a solid capital position are positives; however, weak credit quality remains a concern [15]