Bank of Hawaii Corporation (BOH) Bundle
A Brief History of Bank of Hawaii Corporation (BOH)
Overview
Bank of Hawaii Corporation, headquartered in Honolulu, serves as a financial services provider in the state of Hawaii and the Pacific Islands. Established in 1897, the bank has evolved significantly over the years, adapting to changing economic conditions and customer needs.
Recent Financial Performance
As of September 30, 2024, Bank of Hawaii reported total assets of $23.8 billion, a slight increase from $23.7 billion as of December 31, 2023. The bank's net income for the three months ended September 30, 2024, was $40.4 million, compared to $47.9 million for the same period in 2023. The year-to-date net income for 2024 reached $110.8 million, reflecting a decrease from $140.8 million in 2023.
Key Financial Metrics
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $23.8 billion | $23.7 billion |
| Net Income (Q3) | $40.4 million | $47.9 million |
| Net Income (Year-to-Date) | $110.8 million | $140.8 million |
| Common Equity Tier 1 Capital Ratio | 11.66% | 11.33% |
| Total Deposits | $21.0 billion | $21.1 billion |
Loan Portfolio
As of September 30, 2024, the bank's total loans and leases stood at $13.9 billion, compared to $14.0 billion at the end of 2023. The composition of the loan portfolio includes:
- Commercial Loans: $5.9 billion
- Consumer Loans: $7.9 billion
Regulatory Capital and Ratios
Bank of Hawaii's regulatory capital ratios as of September 30, 2024, were as follows:
| Capital Ratio | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Common Equity Tier 1 Capital Ratio | 11.66% | 11.33% |
| Tier 1 Capital Ratio | 14.05% | 12.56% |
| Total Capital Ratio | 15.11% | 13.60% |
| Tier 1 Leverage Ratio | 8.38% | 7.51% |
Dividends and Shareholder Returns
Bank of Hawaii declared cash dividends totaling $28.1 million on common stock for the third quarter of 2024, maintaining a dividend of $0.70 per share. From July 2001 through September 30, 2024, the bank has repurchased a total of 58.2 million shares, returning $2.4 billion to shareholders at an average cost of $41.24 per share.
Market Position and Outlook
Bank of Hawaii remains a key player in the financial services industry within its region, focusing on expanding its customer base and enhancing service offerings. With a strong capital base and commitment to shareholder returns, the bank is well-positioned to navigate future economic challenges.
A Who Owns Bank of Hawaii Corporation (BOH)
Major Shareholders
As of 2024, Bank of Hawaii Corporation (BOH) has a diverse ownership structure with notable institutional and individual shareholders. The following table summarizes the major shareholders of BOH:
| Shareholder Type | Shareholder Name | Ownership Percentage | Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 10.5% | 4,177,000 |
| Institutional Investor | BlackRock, Inc. | 8.9% | 3,400,000 |
| Institutional Investor | State Street Corporation | 7.5% | 2,900,000 |
| Individual Investor | Peter S. Ho (Chairman & CEO) | 1.2% | 487,000 |
| Institutional Investor | Dimensional Fund Advisors LP | 4.7% | 1,800,000 |
Recent Shareholder Changes
In the latest quarter, the shareholder equity of Bank of Hawaii Corporation was $1.7 billion, reflecting an increase of 18% from December 31, 2023. This increase can be attributed to several factors including net preferred stock issuance and comprehensive income growth. The total shares outstanding as of September 30, 2024, were approximately 39.7 million.
Stock Performance and Market Capitalization
As of the end of September 2024, BOH's stock was trading at approximately $41.25 per share, resulting in a market capitalization of around $1.63 billion. Over the past year, the stock has experienced volatility, reflecting broader market conditions and company performance metrics.
Dividend Distribution
Bank of Hawaii Corporation has a history of consistent dividend payments. The quarterly cash dividend declared for common stock in October 2024 was $0.70 per share. The total cash dividends declared on common shares during the first nine months of 2024 amounted to $84.2 million.
Ownership Trends
In terms of ownership trends, institutional ownership has increased slightly over the past year, indicating strong confidence from major investors in the company's long-term prospects. The average daily trading volume of BOH shares is approximately 150,000 shares, suggesting a healthy level of liquidity in the market.
Conclusion on Ownership Structure
The ownership structure of Bank of Hawaii Corporation showcases a blend of institutional and individual investors, with a strong emphasis on institutional investment. This diverse ownership base is indicative of the company's stability and ongoing commitment to shareholder value.
Bank of Hawaii Corporation (BOH) Mission Statement
The Bank of Hawaii Corporation (BOH) aims to enhance the financial well-being of its clients, communities, and shareholders through a commitment to service excellence and integrity. The mission is to provide personalized banking solutions, foster sustainable economic growth in Hawaii, and maintain a strong focus on customer satisfaction.
Financial Overview
As of September 30, 2024, the following key financial metrics were reported:
| Metric | Amount |
|---|---|
| Total Assets | $23.8 billion |
| Total Deposits | $21.0 billion |
| Total Loans and Leases | $13.9 billion |
| Total Shareholders' Equity | $1.7 billion |
| Net Income (Q3 2024) | $40.4 million |
| Net Interest Margin | 2.18% |
| Return on Average Common Equity | 11.50% |
| Effective Tax Rate | 23.33% |
Core Values
- Integrity: Upholding the highest standards of ethics.
- Customer Focus: Prioritizing the needs and satisfaction of clients.
- Community Engagement: Contributing to the economic development of Hawaii.
- Innovation: Embracing new technologies and solutions to enhance customer experience.
Strategic Objectives
BOH's strategic objectives include:
- Expanding customer base through tailored financial products.
- Improving operational efficiency and cost management.
- Enhancing digital banking capabilities to meet evolving customer preferences.
- Maintaining a strong capital position to support growth initiatives.
Recent Developments
In Q3 2024, BOH reported a net income of $40.4 million, down 16% from the previous year. The decrease was attributed to a reduction in noninterest income and an increase in noninterest expenses. The provision for credit losses stood at $3.0 million, reflecting ongoing economic uncertainties.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $40.4 million | $47.9 million |
| Noninterest Income | $45.1 million | $50.3 million |
| Noninterest Expense | $107.1 million | $106.0 million |
| Provision for Credit Losses | $3.0 million | $2.0 million |
Commitment to Community
Bank of Hawaii actively participates in community development initiatives and sustainability efforts. The bank has invested in various local programs, supporting education, environmental conservation, and economic development in the region.
Future Outlook
Looking ahead, BOH plans to leverage its strong capital base to explore growth opportunities while adapting to the dynamic banking environment. The focus will remain on enhancing customer experience and fostering long-term relationships with clients across Hawaii.
How Bank of Hawaii Corporation (BOH) Works
Financial Overview
As of September 30, 2024, Bank of Hawaii Corporation (BOH) reported total assets of $23.8 billion, a decrease of 0.3% from December 31, 2023. Total loans and leases stood at $13.9 billion, also a decrease of 0.3% from the end of 2023.
Income Statement Highlights
For the three months ended September 30, 2024, BOH recorded a net income of $40.4 million, down 16% from $47.9 million in the same quarter of 2023. The diluted earnings per common share for this quarter were $0.93, a decrease of 21% year-over-year.
| Item | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $40.4 million | $47.9 million | -16% |
| Earnings per Share (Diluted) | $0.93 | $1.17 | -21% |
| Return on Average Common Equity | 11.50% | 15.38% | -3.88% |
| Net Interest Income | $117.6 million | $120.9 million | -3% |
| Noninterest Income | $45.1 million | $50.3 million | -10% |
| Noninterest Expense | $107.1 million | $105.0 million | +1% |
Balance Sheet Highlights
As of September 30, 2024, total deposits were $21.0 billion, slightly down from $21.1 billion as of December 31, 2023. Total shareholders’ equity was reported at $1.7 billion, marking an increase of 18% from the previous year.
| Item | September 30, 2024 | December 31, 2023 | Change |
|---|---|---|---|
| Total Assets | $23.8 billion | $23.9 billion | -0.3% |
| Total Loans and Leases | $13.9 billion | $14.0 billion | -0.3% |
| Total Deposits | $21.0 billion | $21.1 billion | -0.5% |
| Total Shareholders' Equity | $1.7 billion | $1.4 billion | +18% |
Loan Portfolio Composition
The composition of BOH's loan and lease portfolio as of September 30, 2024, is shown below:
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial Mortgage | $3,868,566 |
| Commercial and Industrial | $1,675,347 |
| Construction | $319,150 |
| Residential Mortgage | $4,622,677 |
| Home Equity | $2,195,844 |
| Automobile | $786,910 |
| Total Loans and Leases | $13,918,583 |
Credit Quality Metrics
As of September 30, 2024, the allowance for credit losses on loans and leases was $147.3 million, representing 1.06% of total loans and leases outstanding. Net loan and lease charge-offs during the third quarter were $3.8 million, or 0.11% annualized of total average loans and leases outstanding.
Market Performance
Bank of Hawaii's stock performance and capital management strategies include a share repurchase program with a remaining buyback authority of $126 million as of September 30, 2024. The company has repurchased a total of 58.2 million shares since the program's inception, returning $2.4 billion to shareholders at an average cost of $41.24 per share.
Regulatory Capital Ratios
As of September 30, 2024, BOH's regulatory capital ratios are as follows:
| Ratio Type | Ratio |
|---|---|
| Common Equity Tier 1 Capital Ratio | 11.66% |
| Tier 1 Capital Ratio | 14.05% |
| Total Capital Ratio | 15.11% |
| Tier 1 Leverage Ratio | 8.38% |
Noninterest Income Breakdown
The components of noninterest income for the third quarter of 2024 were:
| Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Fees, Exchange, and Other Service Charges | $14,945 | $13,824 |
| Trust and Asset Management | $11,916 | $10,548 |
| Service Charges on Deposit Accounts | $8,075 | $7,843 |
| Bank-Owned Life Insurance | $3,533 | $2,749 |
| Annuity and Insurance | $1,460 | $1,156 |
| Total Noninterest Income | $45,110 | $50,334 |
Conclusion
Bank of Hawaii Corporation operates through a comprehensive banking model that includes retail banking, commercial banking, and wealth management services. The bank focuses on maintaining a strong capital position, managing credit risk effectively, and enhancing shareholder value through strategic capital management.
How Bank of Hawaii Corporation (BOH) Makes Money
Net Interest Income
Bank of Hawaii generates a significant portion of its revenue through net interest income. For the third quarter of 2024, net interest income was $117.6 million, reflecting a decrease of 3% compared to the same quarter in 2023. The net interest margin stood at 2.18%, an increase of 5 basis points year-over-year.
| Period | Net Interest Income (in thousands) | Net Interest Margin (%) |
|---|---|---|
| Q3 2024 | $117,618 | 2.18 |
| Q3 2023 | $120,937 | 2.13 |
Provision for Credit Losses
The provision for credit losses is a critical factor impacting net interest income. In Q3 2024, the provision was $3.0 million, up from $2.0 million in Q3 2023. This increase indicates a cautious approach to potential credit risk.
Noninterest Income
Noninterest income contributes to Bank of Hawaii's revenue through various channels. In Q3 2024, total noninterest income was $45.1 million, a decrease of 10% from $50.3 million in Q3 2023.
| Noninterest Income Component | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Fees, Exchange, and Other Service Charges | $14,945 | $13,824 |
| Trust and Asset Management | $11,916 | $10,548 |
| Service Charges on Deposit Accounts | $8,075 | $7,843 |
| Bank-Owned Life Insurance | $3,533 | $2,749 |
| Annuity and Insurance | $1,460 | $1,156 |
| Mortgage Banking | $1,188 | $1,059 |
| Investment Securities Losses, Net | ($1,103) | ($6,734) |
| Other Income | $5,096 | $19,889 |
| Total Noninterest Income | $45,110 | $50,334 |
Noninterest Expense
Noninterest expenses also play a crucial role in determining the bank's profitability. In Q3 2024, total noninterest expenses were $107.1 million, a slight increase of 1% from $105.6 million in Q3 2023.
| Expense Component | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Salaries and Benefits | $58,626 | $58,825 |
| Net Occupancy | $10,806 | $10,327 |
| Net Equipment | $10,120 | $9,477 |
| Professional Fees | $4,725 | $3,846 |
| Data Processing | $4,712 | $4,706 |
| FDIC Insurance | $3,355 | $3,361 |
| Other Expenses | $14,748 | $15,059 |
| Total Noninterest Expense | $107,092 | $105,601 |
Segment Performance
Bank of Hawaii operates through various segments, contributing to its overall income. In Q3 2024, the Consumer Banking segment generated a net income of $32.99 million, while the Commercial Banking segment contributed $28.93 million.
| Segment | Net Income (in thousands) | Q3 2024 | Q3 2023 |
|---|---|---|---|
| Consumer Banking | $32,993 | $34,587 | |
| Commercial Banking | $28,929 | $31,015 | |
| Total | $61,922 | $65,602 |
Conclusion on Financial Performance
As of September 30, 2024, Bank of Hawaii's total assets amounted to $23.8 billion, with total loans and leases at $13.9 billion. The total deposits stood at $21.0 billion.
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Article updated on 8 Nov 2024
Resources:
- Bank of Hawaii Corporation (BOH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Bank of Hawaii Corporation (BOH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Bank of Hawaii Corporation (BOH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.