Exploring Bank of Hawaii Corporation (BOH) Investor Profile: Who’s Buying and Why?

You're looking at Bank of Hawaii Corporation (BOH) and asking the right question: who exactly is buying this stock, and is their thesis about the regional banking model holding up? Honestly, the investor profile for BOH is a fascinating tension between deep-value hunters and long-term stability seekers, particularly given the unique Hawaii market dynamics. We've seen the bank post strong results in the 2025 fiscal year, with Q3 diluted earnings per common share hitting a solid $1.20 and the Net Interest Margin (NIM) expanding to 2.46%, marking its sixth consecutive quarter of margin growth. So, are the big institutional players like Vanguard Group Inc. and JPMorgan Chase & Co. buying primarily for the defensive moat around its $24.0 billion in total assets, or is the attraction the consistent income from the $2.80 forward annual dividend payout? It defintely matters if they're betting on the pristine credit quality or the regional growth story. Let's map out the buyers and sellers to see who is making the decisive moves right now.

Who Invests in Bank of Hawaii Corporation (BOH) and Why?

You're looking at Bank of Hawaii Corporation (BOH) and want to know who is buying the stock and what their endgame is. The direct takeaway is that BOH is overwhelmingly owned by large, long-term institutions who prize its stability and dividend, but a minority of active funds are now buying in, seeing a value play in its improving net interest margin (NIM).

The investor base is a classic mix for a regional bank with a strong local franchise, but the sheer size of the institutional block means their movements drive the stock price. Here's the quick math on who owns the shares:

• Institutional Investors: Approximately 78.76% of shares outstanding.
• Retail/Individual Investors: An estimated 17.34% of the stock.
• Insiders (Management/Board): Roughly 3.90%, showing good alignment.

Key Investor Types: The Passive Giants and Active Funds

The institutional ownership of Bank of Hawaii Corporation is dominated by the world's largest asset managers, which typically means a focus on passive investing (buying the entire index or market segment). The top three institutional holders alone account for a massive chunk of the company's market capitalization, which was around $2.53 billion as of late 2025.

The largest holders are BlackRock, Inc., with a 14.20% stake (representing about 5.65 million shares), followed by Vanguard Group Inc. at 11.41%, and State Street Corp. at 5.57%. These are primarily index funds and exchange-traded funds (ETFs) that hold the stock because it's a component of the Russell 2000 or other small-cap indices. This passive buying provides a strong, stable floor for the stock price.

Still, you also see hedge funds and active managers moving in. For example, Balyasny Asset Management L.P. increased its position significantly in 2025, now holding about 2.55% of the shares, a quarterly change of +122.3%. This signals a belief that the stock is defintely undervalued and poised for a near-term correction or growth surge.

Investment Motivations: Stability and Income

The core motivation for holding Bank of Hawaii Corporation is its unique combination of stability and income, which is rare in the current financial climate. The bank has maintained dividend payments for an impressive 54 consecutive years, making it a favorite for income-focused investors and retirement funds.

The current dividend yield sits attractively between 4.24% and 4.38%, based on the quarterly payout of $0.70 per common share declared in the second and third quarters of 2025. Plus, the bank's financial health is robust. In the third quarter of 2025, the Return on Average Common Equity (ROACE) hit 13.59%, and its Tier 1 Capital Ratio was a healthy 14.3%, well above regulatory minimums. A Tier 1 Capital Ratio over 12% is a good sign of a strong balance sheet.

The bank's dominant local market position is another key draw. It advanced its #1 deposit market share position in Hawaii as of mid-2025. This local monopoly power gives it a pricing advantage that translates directly into better profits.

Investment Strategies: The Value-Income Play

The dominant strategy among BOH investors is a long-term, value-income approach, but recent performance is attracting growth-oriented players too. The key is to look at how the bank is managing its balance sheet in a changing rate environment.

Here's what the latest 2025 results show is driving the investment thesis:

• Net Interest Margin (NIM) Expansion: The bank achieved its sixth consecutive quarter of NIM expansion, reaching 2.46% in Q3 2025, with Net Interest Income rising to $136.7 million. This is a strong sign of management successfully navigating interest rate changes.
• Pristine Credit Quality: The loan portfolio is low-risk, with 86% of the consumer portfolio secured by real estate, and a weighted average Loan-to-Value (LTV) of just 48%. This credit stability is a major reassurance for value investors who are wary of unexpected loan losses.
• Growth in Earnings: Diluted Earnings Per Share (EPS) for Q3 2025 was $1.20, a significant increase of 29% year-over-year. This is what's attracting the growth-at-a-reasonable-price (GARP) crowd.

What this estimate hides is that the stock's performance is still tied to the overall regional bank sector sentiment, even with the strong fundamentals. You can dive deeper into the bank's operational history and structure here: Bank of Hawaii Corporation (BOH): History, Ownership, Mission, How It Works & Makes Money.

The action item is clear: Monitor the NIM and credit quality metrics closely. If NIM expansion stalls or non-performing assets rise above the Q3 2025 level of $16.9 million, the core value-income thesis will weaken.

Institutional Ownership and Major Shareholders of Bank of Hawaii Corporation (BOH)

You're looking at Bank of Hawaii Corporation (BOH) because you know regional banks, especially those with a unique geographic footprint, often have a distinct investor base. The direct takeaway here is that institutional money overwhelmingly controls BOH, holding 81.35% of the company's stock as of the third quarter of 2025. This high concentration means a few major players have significant sway over the stock's direction and corporate strategy.

This level of institutional ownership-where professional money managers control the vast majority of shares-is typical for a solid, mid-cap company like BOH with a market capitalization of $2.63 billion as of late October 2025. It signals credibility among professional investors, but it also means the stock price can be highly sensitive to their collective trading decisions. You need to know who those players are, and what they've been doing.

Top Institutional Investors: Who Holds the Keys to BOH?

The largest shareholders in Bank of Hawaii Corporation are the index fund giants and major asset managers, which is a common structure for companies in major indices. These firms aren't necessarily making a directional bet on the bank, but rather holding it as part of a broader passive investment strategy (tracking an index). Still, their sheer size gives them immense power in proxy votes and corporate governance.

Here's a snapshot of the top three institutional investors and their approximate stakes, based on filings from the 2025 fiscal year:

• BlackRock, Inc.: Holds approximately 15% of common stock.
• The Vanguard Group, Inc.: Holds approximately 11% of common stock.
• State Street Global Advisors, Inc.: Holds about 5.7% of common stock.

Together, these three firms alone account for over 31% of BOH's outstanding shares. That's a powerful voting bloc. For a deeper dive into the bank's core performance metrics, you should check out Breaking Down Bank of Hawaii Corporation (BOH) Financial Health: Key Insights for Investors.

Recent Shifts: Institutional Buying and Selling in 2025

Analyzing the most recent 13F filings-the quarterly reports of institutional investment managers-from the third quarter of 2025 shows a mixed but active picture. Overall, there was a slight quarter-over-quarter shift in institutional holdings, but the real story is in the specific fund activity. Some funds were aggressively increasing their stakes, while others were trimming positions, suggesting a divergence in opinion on BOH's near-term outlook.

Here's the quick math on two notable funds making a directional bet:

The massive percentage increases from funds like Balyasny Asset Management L.P. and Schonfeld Strategic Advisors LLC are not just noise; they indicate that a few sophisticated hedge funds see a compelling opportunity in BOH, likely tied to its strong capital levels and Q3 2025 net interest income of $136.7 million. Conversely, some smaller regional trust divisions decreased their holdings, showing a localized rebalancing.

Impact of Institutional Investors on Stock and Strategy

The role of these large investors is critical. With 81.35% of the stock held by institutions, their collective sentiment drives the stock price, especially in a regional bank where liquidity can sometimes be thinner than money-center banks. If a few large passive funds or a major active manager decide to sell, the stock price can drop fast-a risk you must factor into your valuation models (Discounted Cash Flow, or DCF, analysis).

Beyond price volatility, institutional investors influence corporate strategy through shareholder engagement. They push for things like capital return (dividends and buybacks), prudent credit risk management (especially given the allowance for credit losses on loans was $148.8 million at September 30, 2025), and environmental, social, and governance (ESG) initiatives. Their focus is on maximizing long-term shareholder value, and their high ownership stake ensures the board listens. They are defintely a key determinant of the bank's future trajectory.

Key Investors and Their Impact on Bank of Hawaii Corporation (BOH)

You want to know who is driving the ownership of Bank of Hawaii Corporation (BOH) and what their intentions are. The direct takeaway is that BOH is overwhelmingly controlled by large, passive institutional money, which means the focus is less on activist pressure and more on stable corporate governance and consistent capital returns like dividends.

Institutional investors hold about 78.76% of the company's common stock, a high concentration that anchors the stock's stability but also limits the influence of smaller, individual investors. The top holders are the behemoths of the index fund world, whose investment is primarily driven by BOH's inclusion in major market indices (like the S&P Small-Cap ETF) rather than a specific, active investment thesis.

The Dominance of Passive Giants: BlackRock and Vanguard

The investor profile for Bank of Hawaii Corporation (BOH) is defined by the massive stakes held by a few passive asset managers. These are not funds looking to break up the company; they are tracking the market. Their sheer size, however, makes them the defintely most influential voting bloc.

As of the most recent public filings (Q2 2025), the top three institutional holders collectively own over a quarter of the company. Here's the quick math on the major players:

• BlackRock, Inc.: Holds the largest stake at 14.42%, representing 5,735,109 shares.
• The Vanguard Group, Inc.: Owns 11.45%, translating to 4,552,926 shares.
• State Street Global Advisors, Inc.: Holds 5.59%, or 2,223,625 shares.

Their influence centers on environmental, social, and governance (ESG) matters, board composition, and executive compensation, rather than operational strategy. They want the regional bank to maintain a fortress balance sheet and keep returning capital, especially given the company's history of financial stability. You can learn more about the foundation of this stability at Bank of Hawaii Corporation (BOH): History, Ownership, Mission, How It Works & Makes Money.

Investor Influence: Stability Over Activism

The primary role of these top investors is to ensure long-term, non-volatile performance. Since they are index trackers, they cannot simply sell out of their position without changing the structure of their funds. This creates a stable floor for the stock, but it also means management faces less pressure for radical change.

Still, you do see some active money involved. Firms like Balyasny Asset Management LP and Citadel Advisors LLC are also listed among the top institutional holders. These are hedge funds, and their presence suggests a more active, short-term trading interest, often focused on macroeconomic shifts or specific catalysts, such as potential Federal Reserve rate cuts or regional banking sector volatility. For a regional bank with $24.0 billion in total assets as of September 30, 2025 [cite: 4 in step 1], the interplay between passive stability and active trading interest is key to understanding daily stock movements.

Recent Moves and Market Expectations for 2025

Looking at recent activity, the market is pricing in a significant event. As of November 4, 2025, the options market for Bank of Hawaii Corporation (BOH) showed some of the highest implied volatility of all equity options, suggesting traders are expecting a big move in the near future. This expectation likely stems from the strong Q3 2025 results-diluted earnings per share (EPS) hit $1.20, with net income at $53.3 million [cite: 4 in step 1]-but also from the ongoing capital management decisions.

The company continues to prioritize its dividend, declaring a $0.70 per common share dividend for the fourth quarter of 2025 [cite: 6 in step 1]. However, management did not repurchase any common shares during Q3 2025, choosing to conserve capital, even though $126 million remains available under the current buyback plan [cite: 6 in step 1]. What this estimate hides is that insiders have been net sellers over the last 12 months, which is a signal of caution that active investors are watching. The lack of buybacks, coupled with insider selling, suggests that while the bank is profitable, management is being realistic about near-term economic risks and is keeping capital dry.

The next step for you is to monitor the upcoming Q4 2025 earnings call for any changes in the buyback strategy. If the company restarts repurchases, it would signal a significant shift in management's confidence in the near-term economic outlook for Hawaii and the West Pacific region.

Market Impact and Investor Sentiment

The investor sentiment toward Bank of Hawaii Corporation (BOH) right now is defintely positive, largely driven by the bank's consistent execution and its sixth consecutive quarter of Net Interest Margin (NIM) expansion. That's the key takeaway. The market is rewarding BOH's ability to grow earnings in a tough rate environment, even as the broader regional bank sector faces headwinds.

You can see this positive shift clearly in the stock's reaction to the Q3 2025 earnings release. Following the report, which showed diluted earnings per share (EPS) of $1.20-a beat on analyst forecasts-the stock jumped 5.01% in pre-market trading. This is a strong signal that investors are focused on the bank's core profitability and its robust capital position, with a Tier 1 Capital Ratio of 14.34% as of September 30, 2025.

Still, the market reaction isn't always one-sided. Back in Q2 2025, the stock fell 5.21% post-earnings, despite a slight EPS beat, because revenue of $174.48 million missed expectations. This shows the market's realism: investors expect flawless performance from a regional bank with a concentrated geographic footprint like Bank of Hawaii Corporation (BOH).

• Q3 2025 Net Income: $53.3 million
• Q3 2025 NIM: 2.46% (Sixth consecutive quarterly expansion)
• Q3 2025 Return on Average Common Equity (ROACE): 13.6%
• Recent 3-Month Stock Climb: 5.8% (as of early November 2025)

Who's Buying and Why: The Institutional Base

Bank of Hawaii Corporation (BOH) is overwhelmingly owned by institutions, with this group holding around 79% of the company's shares. This means the big players-the index funds and money managers-are the ones dictating long-term price stability and major trading volume. The investment thesis for these large holders is simple: stability, capital return, and a dominant local market position.

The top three institutional holders are the behemoths of passive investing, which is typical for a stable regional bank. BlackRock, Inc. is the largest shareholder with an ownership of 15%, followed by The Vanguard Group, Inc. at 11%, and State Street Global Advisors, Inc. holding about 5.7% of common stock. These passive stakes provide a strong, sticky base for the stock. You can read more about the company's foundation and market position here: Bank of Hawaii Corporation (BOH): History, Ownership, Mission, How It Works & Makes Money.

However, recent 13F filings for Q3 2025 show a slight institutional pullback, with overall holdings decreasing by 3.04% quarter-over-quarter. This is a minor shift, but it signals that some active managers are taking profits or rebalancing. The company's consistent quarterly cash dividend of $0.70 per common share, which was declared for the fourth quarter of 2025, is a major draw for income-focused investors, which is why the stock is appealing to these large, long-term holders.

Analyst Consensus and Future Outlook

The analyst community views Bank of Hawaii Corporation (BOH) with a moderate-to-bullish outlook, largely because its credit quality remains 'pristine' and its core market dominance is unmatched. The consensus is that the bank is undervalued, with fair value estimates ranging from $70.50 to an 'Excess Returns-based intrinsic value' of $104.15 per share. This creates a solid margin of safety for new investors.

Analysts from firms like Barclays and Piper Sandler & Co. are tracking the bank's continued success in managing its balance sheet. They project Q4 2025 diluted EPS to be approximately $1.23 on revenue of around $185.3 million. The core opportunity is the continued re-pricing of fixed-rate assets, where the bank has been rolling off older loans and investments at a lower rate (e.g., 4.1%) and reinvesting them at a higher rate (e.g., 6.3%), which directly drives the NIM expansion.

Here's the quick math: the bank's remaining buyback authority is substantial at $126.0 million as of September 30, 2025. This unused authorization acts as a potential catalyst for future EPS growth and is a clear signal of management's confidence in the stock's value, which is a major positive for all shareholders.