Core Viewpoint - Bank of Hawaii (BOH) is experiencing solid improvement in earnings estimates, which is likely to positively impact its stock price momentum [1][2]. Earnings Estimates - Analysts are increasingly optimistic about Bank of Hawaii's earnings prospects, leading to higher estimates that should reflect in the stock price [2]. - For the current quarter, the expected earnings per share (EPS) is $1.02, representing an increase of +18.6% from the previous year [6]. - The consensus estimate for the full year is projected at $4.16 per share, indicating a year-over-year change of +17.85% [7]. Estimate Revisions - Over the past 30 days, one estimate has been revised upward for the current quarter, with no negative revisions, resulting in a 6.28% increase in the Zacks Consensus Estimate [6]. - For the current year, three estimates have moved up with no negative revisions, contributing to a positive trend in consensus estimates [7]. Zacks Rank - Bank of Hawaii currently holds a Zacks Rank 2 (Buy), reflecting favorable estimate revisions and a strong potential for outperformance compared to the S&P 500 [8]. - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks averaging an annual return of +25% since 2008 [3]. Stock Performance - Bank of Hawaii shares have increased by 13% over the past four weeks, indicating investor confidence in its earnings growth prospects [9].

Financial Performance - Net income for Q1 2025 was $44.0 million, an increase of $7.6 million or 21% compared to Q1 2024[136] - Diluted earnings per common share for Q1 2025 was $0.97, an increase of $0.10 or 11% compared to Q1 2024[136] - Net interest income for Q1 2025 was $125.8 million, an increase of 10% compared to the same period last year[138] - Noninterest income was $44.1 million in Q1 2025, an increase of 4% compared to the same period last year[138] - The return on average common equity for Q1 2025 was 11.80%, compared with 11.20% in Q1 2024[136] - The effective tax rate for Q1 2025 was 21.67%, down from 24.76% in the same period last year[138] Assets and Liabilities - Total assets were $23.9 billion as of March 31, 2025, an increase of 1.2% from December 31, 2024[138] - Total loans and leases were $14.1 billion as of March 31, 2025, an increase of 0.3% from December 31, 2024[138] - Total deposits were $21.0 billion as of March 31, 2025, compared to $20.6 billion as of December 31, 2024[138] - Average balance of earning assets increased by $286.3 million, or 1%, to $22,023.9 million for the three months ended March 31, 2025 compared to the same period last year[144] - Average balance of interest-bearing liabilities increased by $322.9 million, or 2%, to $16,010.1 million for the three months ended March 31, 2025 compared to the same period last year[145] Income and Expense - Total noninterest expense increased by $4.6 million or 4% in Q1 2025 compared to Q1 2024, reaching $110.5 million[152] - Total salaries and benefits expense rose by $4.7 million or 8% in Q1 2025, primarily due to increases in incentive compensation and medical, dental, and life insurance expenses[152] - Net interest income increased by $12.7 million, driven by a change in interest income of $4.8 million and a decrease in interest expense of $7.9 million[142] Credit Quality - Nonperforming assets and accruing loans and leases past due 90 days or more were monitored closely to manage credit risk effectively[183] - The provision for credit losses in Consumer Banking increased by $1 million or 44% due to higher net charge-offs in auto and installment loans[180] - Total Non-Performing Assets decreased to $17.451 million as of March 31, 2025, down from $19.300 million as of December 31, 2024, representing a reduction of $1.849 million or 9.6%[186] - The Allowance for Credit Losses was $147.707 million as of March 31, 2025, or 1.05% of total loans and leases outstanding, compared to $148.528 million or 1.06% as of December 31, 2024[192] Dividends and Shareholder Returns - The Company declared a quarterly cash dividend of $0.70 per share on outstanding common shares, payable on June 13, 2025[138] - No shares of common stock were repurchased in Q1 2025, with a total of 58.2 million shares repurchased since the program's inception, returning $2.4 billion to shareholders[224] Operational Risk Management - The Company has established an Operational Risk Committee (ORC) to oversee and assess significant operational risks, including cybersecurity risks[228] - The Company continuously strengthens its internal controls to minimize operational risks, although there is no assurance that operational losses will not occur[229] - Management's oversight of operational risk is crucial for achieving the Company's goals and objectives[229] Liquidity and Capital - Shareholders' equity increased by $37.2 million (2%) to $1.7 billion as of March 31, 2025, driven by net income of $44.0 million and other comprehensive income of $25.0 million[223] - The ratio of readily available liquidity to uninsured deposits improved to 129% as of March 31, 2025, up from 116% at December 31, 2024, due to increased cash and cash equivalents and borrowing capacity[213] - Total regulatory capital as of March 31, 2025, was $2,144,280 thousand, with a Common Equity Tier 1 Capital Ratio of 11.58%[221]

Core Viewpoint - Bank of Hawaii Corporation (BOH) reported strong first-quarter 2025 results, with adjusted earnings per share (EPS) of 97 cents, exceeding the Zacks Consensus Estimate of 89 cents and up from 87 cents in the prior year [1] Financial Performance - The company's net income (GAAP basis) was $43.9 million, reflecting a year-over-year increase of 20.9% [2] - Quarterly revenues rose 8.8% year over year to $169.9 million, surpassing the Zacks Consensus Estimate by 1.3% [3] - Net interest income (NII) reached $125.8 million, up 10.4% year over year, with net interest margin (NIM) increasing by 21 basis points to 2.32% [3] - Non-interest income was $44.1 million, a 4.2% increase year over year, driven by growth in trust and asset management income, service charges, and insurance income [4] Expense and Efficiency - Non-interest expenses increased by 4.3% to $110.5 million, primarily due to higher salaries and benefits, partially offset by lower FDIC insurance and professional fees [5] - The efficiency ratio improved to 65.03%, down from 67.76% in the previous year, indicating enhanced profitability [5] Loans and Deposits - Total loans and leases as of March 31, 2025, were $14.1 billion, slightly above the prior quarter's end [6] - Total deposits increased by 1.8% sequentially to $21 billion [6] Credit Quality - Non-performing assets rose to $17.5 million, a 47.4% increase year over year [7] - Net loans and lease charge-offs were $4.4 million, up $2.3 million from the previous year [7] - Provision for credit losses increased by 62.5% year over year to $3.3 million [7] Capital Ratios - The Tier 1 capital ratio improved to 13.93%, up from 12.74% a year ago [9] - The total capital ratio rose to 14.97%, compared to 13.81% in the prior year [9] - The ratio of tangible common equity to risk-weighted assets increased to 9.28% from 8.70% [9] Profitability Ratios - Return on average assets was 0.75%, up from 0.63% in the prior year [10] - Return on average shareholders' equity improved to 10.65%, compared to 10.34% as of March 31, 2024 [10] Share Repurchase - In the reported quarter, Bank of Hawaii did not repurchase any shares, with a remaining buyback authority of $126 million as of March 31, 2025 [11] Overall Assessment - The rise in NII and fee income supports top-line growth, alongside a solid capital position and increased loan and deposit balances. However, weak credit quality and rising expenses present near-term concerns [12]

Financial Performance - Diluted earnings per common share were $0.97, with a net income of $44.0 million[7] - Net interest margin expanded for the fourth consecutive quarter, reaching 2.32% from 2.19%[7] - Return on average common equity was 11.80%[7] - Total revenue increased to $169.9 million, compared to $156.2 million in 1Q 2024[96] Balance Sheet & Credit Quality - Total deposits increased by 7.3% annualized, and total loans and leases increased by 1.1% annualized[7] - Tier 1 capital ratio stood at 13.93%, and the total capital ratio was 14.97%[7] - Net charge-off rate remained low at 0.13%, with non-performing assets at 0.12%[7] - 79% of the loan portfolio is real estate-secured, with a combined weighted average LTV of 51%[7] Market Position - Bank of Hawai'i holds a 33.5% market share of bank deposits in Hawai'i[9]

Financial Data and Key Metrics Changes - Bank of Hawaii reported net interest income of $120.2 million, an increase of $2.6 million or 2.2% from the previous quarter [24] - Net interest margin (NIM) expanded to 2.19%, with a further improvement to 2.26% by December [24][25] - Non-interest income totaled $43 million, adjusted to $45.4 million after excluding a one-time charge related to Visa Class B shares [34] - Net income for the fourth quarter was $39.2 million, with earnings per common share at $0.85 [38] Business Line Data and Key Metrics Changes - Average deposits grew by 1.3% to $20.8 billion, while average loans increased by 1.1% to $14 billion [8] - The loan portfolio is balanced with consumer loans representing 56% and commercial loans 44% [14] - The consumer portfolio is predominantly secured against real estate, with 85% being residential mortgage or home equity [15] Market Data and Key Metrics Changes - Bank of Hawaii holds the number one position in market share in Hawaii, with stable economic conditions and unemployment below the national average [10][11] - The visitor market remains stable, although impacted by the Maui market [12] Company Strategy and Development Direction - The company focuses on maintaining strong credit performance through long-standing relationships, with 60% of clients having been with the bank for over 10 years [13] - There is an emphasis on enhancing revenue through strategic investments in commercial and wealth management areas [68][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in loan growth, particularly in the commercial sector, while consumer loan growth is expected to remain stable [50][92] - The company anticipates continued improvement in net interest income driven by asset repricing and deposit growth [94] Other Important Information - The company maintained a tier one capital ratio of 13.95% and a total capital ratio of 15% [40] - The board declared a dividend of 70 cents per common share for the first quarter of 2025 [41] Q&A Session Summary Question: Is the December margin of 2.26 a good starting point for the first quarter? - Management confirmed that the December margin is a clean number and a good starting point for the first quarter [47] Question: What is the outlook for loan growth and the impact of M&A activity? - Management indicated reasonable loan growth expectations, particularly in commercial loans, with no significant changes in competition anticipated [50][51] Question: What is the current allocation of the $2 billion in swaps between the securities and loan portfolios? - The allocation is approximately $600 million against the securities portfolio and $1.3 billion against the loan portfolio [76] Question: What initiatives are included in the revenue-enhancing strategies? - The initiatives are directed at commercial and wealth areas, aimed at enhancing the earning stream [68] Question: What is the current offering rate for CDs and expected repricing? - The current offering rate is around 3%, with expectations for repricing as rates adjust [83][84]

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]