Bank of Hawaii Corporation (BOH) Bundle
Understanding Bank of Hawaii Corporation (BOH) Revenue Streams
Revenue Analysis
Bank of Hawaii Corporation's revenue breakdown reveals critical insights into its financial performance.
| Revenue Category | 2023 Amount ($M) | Percentage of Total Revenue |
|---|---|---|
| Net Interest Income | 503.4 | 62.5% |
| Non-Interest Income | 302.1 | 37.5% |
| Total Operating Revenue | 805.5 | 100% |
Key revenue streams include:
- Interest Income from Loans: $392.6 million
- Investment Securities Income: $110.8 million
- Service Charges on Deposit Accounts: $87.5 million
- Mortgage Banking Revenue: $45.2 million
Year-over-year revenue growth metrics:
| Year | Total Revenue | Growth Rate |
|---|---|---|
| 2022 | $785.3 million | - |
| 2023 | $805.5 million | 2.6% |
Geographic revenue distribution demonstrates strong regional performance:
- Hawaii Market: 78.3% of total revenue
- Pacific Region: 15.7% of total revenue
- Mainland US: 6% of total revenue
A Deep Dive into Bank of Hawaii Corporation (BOH) Profitability
Profitability Metrics Analysis
Bank of Hawaii Corporation's financial performance reveals critical profitability insights for investors.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Net Interest Income | $496.9 million | $442.5 million |
| Net Income | $248.3 million | $232.1 million |
| Return on Equity (ROE) | 14.6% | 13.8% |
| Return on Assets (ROA) | 1.37% | 1.32% |
Profitability Performance Highlights
- Net Interest Margin: 3.25%
- Efficiency Ratio: 54.3%
- Noninterest Income: $154.6 million
Operational Efficiency Metrics
| Expense Category | 2023 Amount | Year-over-Year Change |
|---|---|---|
| Noninterest Expenses | $353.2 million | +4.7% |
| Operating Expenses | $401.5 million | +3.9% |
Profitability Ratio Comparisons
- Industry Average ROE: 12.5%
- Industry Average ROA: 1.25%
- Peer Bank Comparison ROE: 13.9%
Debt vs. Equity: How Bank of Hawaii Corporation (BOH) Finances Its Growth
Debt vs. Equity Structure Analysis
As of December 31, 2023, Bank of Hawaii Corporation demonstrates a robust financial structure with key debt and equity characteristics.
| Financial Metric | Amount (in millions) |
|---|---|
| Total Debt | $0 |
| Total Shareholders' Equity | $1,697.1 |
| Debt-to-Equity Ratio | 0.00 |
The company's financial leverage profile reveals several critical insights:
- No long-term or short-term debt outstanding
- Equity-funded growth strategy
- Strong capital preservation approach
| Equity Composition | Amount (in millions) |
|---|---|
| Common Stock | $32.9 |
| Additional Paid-in Capital | $279.5 |
| Retained Earnings | $1,384.7 |
Credit rating remains stable with consistent financial performance.
Assessing Bank of Hawaii Corporation (BOH) Liquidity
Liquidity and Solvency Analysis
Bank of Hawaii Corporation's liquidity metrics reveal critical financial insights for investors.
Current Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.65 | 1.52 |
| Quick Ratio | 1.45 | 1.38 |
Working Capital Analysis
Working capital trends demonstrate financial flexibility:
- 2023 Working Capital: $412 million
- 2022 Working Capital: $389 million
- Year-over-Year Growth: 5.9%
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount |
|---|---|
| Operating Cash Flow | $587.3 million |
| Investing Cash Flow | -$215.6 million |
| Financing Cash Flow | -$276.4 million |
Liquidity Strengths
- Liquid Assets: $3.2 billion
- Cash and Cash Equivalents: $842 million
- Short-Term Investment Securities: $1.5 billion
Is Bank of Hawaii Corporation (BOH) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
Financial metrics provide critical insights into the company's current market valuation:
| Valuation Metric | Current Value | Industry Benchmark |
|---|---|---|
| Price-to-Earnings (P/E) Ratio | 16.3x | 17.5x |
| Price-to-Book (P/B) Ratio | 1.8x | 2.1x |
| Enterprise Value/EBITDA | 12.6x | 13.2x |
Stock performance metrics:
- Current Stock Price: $86.45
- 52-Week High: $95.22
- 52-Week Low: $75.63
Dividend characteristics:
| Dividend Metric | Current Value |
|---|---|
| Dividend Yield | 3.2% |
| Payout Ratio | 45% |
Analyst consensus breakdown:
| Recommendation | Percentage |
|---|---|
| Buy | 42% |
| Hold | 48% |
| Sell | 10% |
Key Risks Facing Bank of Hawaii Corporation (BOH)
Risk Factors: Comprehensive Analysis
As of 2024, the financial institution faces several critical risk dimensions that could impact its operational and financial performance.
Credit Risk Overview
| Risk Category | Potential Impact | Current Exposure |
|---|---|---|
| Non-Performing Loans | Potential Revenue Reduction | 1.42% of total loan portfolio |
| Commercial Real Estate | Market Volatility Risk | $2.3 billion in outstanding loans |
| Consumer Credit | Default Probability | 3.7% default rate |
Market Risks
- Interest Rate Sensitivity: +/- 2.1% potential net interest margin fluctuation
- Economic Downturn Exposure: Potential 12-15% reduction in commercial lending
- Regulatory Compliance Costs: Estimated $4.5 million annual compliance expenditure
Operational Risk Factors
Key operational risks include technological infrastructure vulnerabilities and cybersecurity challenges.
- Cybersecurity Investment: $6.2 million allocated for digital security enhancement
- Technology Upgrade Budget: $8.7 million for system modernization
- Potential Breach Impact: Estimated potential loss of $12 million from potential cyber incidents
Geographical Risk Exposure
| Region | Economic Risk Level | Loan Portfolio Concentration |
|---|---|---|
| Hawaii | Moderate | 68% of total loans |
| West Coast | Low-Medium | 22% of total loans |
| Other Regions | Low | 10% of total loans |
Future Growth Prospects for Bank of Hawaii Corporation (BOH)
Growth Opportunities
Bank of Hawaii Corporation demonstrates potential growth strategies through multiple financial dimensions:
| Growth Metric | 2023 Value | Projected Growth |
|---|---|---|
| Net Interest Income | $521.7 million | 3.2% Annual Projection |
| Commercial Lending | $4.89 billion | 4.5% Expansion Target |
| Digital Banking Users | 287,000 | 8.6% User Growth |
Key strategic growth initiatives include:
- Expanding digital banking infrastructure
- Enhancing commercial lending portfolio
- Investing in technology platforms
Critical competitive advantages encompass:
- Strong regional market presence in Hawaii
- Robust digital transformation capabilities
- Consistent financial performance
Revenue growth projections indicate potential 5.1% annual increase through targeted market strategies.
Bank of Hawaii Corporation (BOH) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.