Is BOH a Buy? What to Consider in 2026

Last updated July 2026

Short answer

The bull case for Bank of Hawaii Corporation (BOH) rests on Recovering net interest margin: BOH's margin was compressed when funding costs rose, but it has been expanding again as deposit costs decline. Full-Year 2025 Diluted EPS is ~$4.63. If you believe that thesis holds, the real questions become position sizing and overlap, not timing. The main risk to that view: BOH is geographically concentrated in Hawaii, Guam, and the Pacific, so a downturn in Hawaii tourism, employment, or real estate would hit loan demand, credit quality, and deposits harder than it would a diversified national bank. Whether BOH is a buy comes down to whether you believe the thesis. This is informational, not a recommendation, and Walnut is not an investment adviser.

Bank of Hawaii Corporation (NYSE: BOH) is the holding company for Bank of Hawaii, a financial institution founded in 1897 that serves customers in Hawaii, Guam, and other Pacific islands. The bank operates through three segments: Consumer Banking (residential mortgages, home equity lines, auto loans, credit cards, deposit accounts, private banking, and trust and investment management), Commercial Banking (corporate lending, commercial real estate loans, lease financing, treasury and merchant services), and Treasury (the securities portfolio and balance-sheet management). Like most banks, BOH earns money in two main ways: net interest income, the spread between what it earns on loans and securities and what it pays on deposits, plus noninterest fee income from cards, trust and wealth services, and deposit-related fees. The investment picture is defined by BOH's entrenched position in a concentrated market: since 2005 the bank has grown Hawaii market share by roughly 600 basis points, more than any other competitor, giving it a low-cost, sticky deposit base. After a period of margin compression during the higher-rate environment, its net interest margin has been recovering as deposit costs fall, with Q1 2026 net interest income of about $151.0 million and a margin of about 2.74%. Full-year 2025 net income was about $205.9 million with diluted EPS of about $4.63. The stock is valued as a steady, dividend-paying regional bank, and its fortunes are tied to interest rates, the Hawaii and Pacific economies (heavily influenced by tourism and real estate), and the credit cycle.

What's the case for buying BOH?

1. Recovering net interest margin.

BOH's margin was compressed when funding costs rose, but it has been expanding again as deposit costs decline. Q1 2026 net interest income rose to about $151.0 million from about $125.8 million a year earlier, and the net interest margin improved to roughly 2.74%. Management has pointed to continued repricing of the securities and loan books plus falling deposit costs (the average cost of total deposits fell 17 basis points in Q1 2026) as tailwinds to spread income.

2. Dominant, low-cost deposit franchise.

With about $21 billion of total deposits and a market-leading share in Hawaii, BOH funds itself with a large, sticky base of consumer and commercial deposits. That franchise supports a low cost of funds and stable liquidity, which matters for a bank whose earnings hinge on the deposit-to-loan spread. The bank has grown Hawaii market share by roughly 600 basis points since 2005, more than any local competitor.

3. Steady dividend and shareholder returns.

BOH pays a quarterly common dividend of about $0.70 per share, for a yield in the mid-3% range at recent prices, and reaffirmed the dividend alongside Q1 2026 results. The bank also has preferred stock outstanding. For income-oriented investors the payout is a central part of the total-return story, though it depends on continued earnings and adequate capital.

4. Improving credit and expense trends.

Credit metrics have stayed benign: the Q1 2026 provision for credit losses eased to about $1.8 million and net charge-offs fell to about $4.1 million, low levels for a bank of BOH's size. Combined with expense discipline and a lower efficiency ratio versus the prior year, stable credit supports earnings power if the local economy holds up.

What are the risks to BOH?

BOH is geographically concentrated in Hawaii, Guam, and the Pacific, so a downturn in Hawaii tourism, employment, or real estate would hit loan demand, credit quality, and deposits harder than it would a diversified national bank. Its loan book skews toward residential and commercial real estate, leaving it exposed to property-value declines and rising vacancies. As a bank, it is highly rate-sensitive: the margin recovery depends on the path of interest rates and deposit repricing, and a sharp move in either direction could compress spread income. The securities portfolio carries unrealized losses common across regional banks that rose with rates, which can pressure tangible book value. Broader risks include the credit cycle, deposit competition, regulatory and capital requirements, and any renewed stress in the regional-banking sector.

How is BOH valued? (as of July 2026)

Price

$85.79

Market cap

$3.40B

P/E (TTM)

17.30

Forward P/E

12.48

Price / book

2.25

Beta

0.69

52-week range

$59.36 to $86.31

Snapshot for BOH as of July 2026, sourced from Yahoo Finance and may be delayed. Valuation figures move with price and earnings; verify the current numbers with your broker before deciding.

Market Cap: ~$3.4 billion
Full-Year 2025 Net Income: ~$205.9 million
Full-Year 2025 Diluted EPS: ~$4.63
Q1 2026 Net Interest Income: ~$151.0 million (NIM ~2.74%)
Total Deposits / Total Assets: ~$21.0 billion / ~$23.9 billion
Dividend Yield / P/E: ~3.4% yield ($0.70/quarter), P/E ~16-17x

At a recent price near $86 and a P/E in the high-teens, BOH trades at a premium to many regional-bank peers, which the market appears to attribute to its dominant Hawaii franchise and stable deposit base. Earnings improved through 2025 and into 2026 as the net interest margin recovered. Bank valuations also hinge on tangible book value, capital ratios, and credit trends, so figures shift with the rate cycle.

How do you decide if BOH is a buy?

Rather than asking whether BOH is a buy in the abstract, it tends to help to answer four questions:

Thesis: do you believe the case above, and is it still true today?
Time horizon: a single stock can be volatile, so a longer horizon absorbs more of the swings.
Position sizing: a thesis can be right and the sizing still wrong; decide how much of your portfolio one name should be.
Overlap: check whether you already hold BOH indirectly through an index or sector ETF before adding more.

For the full picture, see the BOH stock guide (what the company does, the ETFs that hold it, similar stocks, and the themes it fits). In Walnut you can ask its AI about BOH against your real portfolio and see your actual exposure before deciding.

The bottom line on BOH

The bottom line: Bank of Hawaii Corporation's story right now is Recovering net interest margin, with full-year 2025 diluted eps at ~$4.63. If you believe that narrative continues, the call is about sizing BOH sensibly and checking overlap with what you own; if you doubt it (the risk: bOH is geographically concentrated in Hawaii, Guam, and the Pacific, so a downturn in Hawaii tourism, employment, or real estate would hit loan demand, credit quality, and deposits harder than it would a diversified national bank.), it is not for you. Decide from the thesis, not the ticker. Walnut is not an investment adviser.

Build a basket around BOH with Walnut

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FAQ

Is BOH a good stock to buy right now?

The case for Bank of Hawaii Corporation right now is Recovering net interest margin, with full-year 2025 diluted eps at ~$4.63. If you believe that thesis holds, BOH is a way to own it and the real questions are sizing and overlap, not timing; the main risk to that view is bOH is geographically concentrated in Hawaii, Guam, and the Pacific, so a downturn in Hawaii tourism, employment, or real estate would hit loan demand, credit quality, and deposits harder than it would a diversified national bank. So it comes down to whether you believe the thesis. Walnut is not an investment adviser and this is not a recommendation.

What does Bank of Hawaii Corporation do?

Bank of Hawaii Corporation (NYSE: BOH) is the holding company for Bank of Hawaii, a financial institution founded in 1897 that serves customers in Hawaii, Guam, and other Pacific i

What are the main risks of BOH?

What does Bank of Hawaii do?

It is the holding company for Bank of Hawaii, a regional bank founded in 1897 that takes deposits and makes loans across Hawaii, Guam, and the Pacific islands. It runs Consumer Banking, Commercial Banking, and Treasury segments and earns money mainly from net interest income plus fees.

How do I invest in BOH stock?

BOH trades on the NYSE, so you can buy shares or fractional shares through any major brokerage. Some investors also gain exposure through regional-bank or dividend ETFs that hold it, or by including it as one position in a diversified basket.

Does Bank of Hawaii pay a dividend?

Yes. BOH pays a quarterly common dividend of about $0.70 per share, which works out to a yield in the mid-3% range at recent prices. The dividend was reaffirmed alongside Q1 2026 results, though future payouts depend on earnings and capital.

How did Bank of Hawaii perform in 2025 and early 2026?

Full-year 2025 net income was about $205.9 million with diluted EPS near $4.63. In Q1 2026, net income rose to about $57.4 million as net interest income climbed to about $151.0 million and the net interest margin improved to roughly 2.74%.

Walnut is informational and is not an investment adviser. This page is educational and not a recommendation to buy or sell BOH; figures are approximate and dated, and your own situation, time horizon, and risk tolerance should drive any decision. Verify current data before investing.