Bank of Hawaii Corp (NYSE: BOH) is a regional bank holding company that provides banking, investment management, and fee-based financial services primarily in Hawaii and the West Pacific. It earns money through the spread between interest collected on loans, leases, and investment securities and interest paid on deposits and borrowings, supplemented by fee income from investment management and other financial services. The bank relies on customer deposits as its primary source of low-cost funding, with net interest income highly sensitive to changes in market interest rates. Assets under management drive a meaningful share of fee-based revenue, making capital market conditions a secondary earnings variable. The U.S. military presence in Hawaii is a material factor in the regional economy and, by extension, the bank's loan and deposit volumes. Geographic concentration in Hawaii exposes the bank to island-specific risks including climate events, import-cost inflation from tariffs, and a backlog in the state's judicial foreclosure process.

Revenue model

Net interest income from loans, leases, and investment securities (spread over deposit and borrowing costs); fee-based income from investment management (assets-under-management dependent) and other financial services. Customer deposits serve as the primary, low-cost funding source.

Products and services

Commercial and consumer loans and leases; residential mortgage lending and servicing (including mortgage servicing rights); investment securities portfolios; deposit accounts; investment management and assets-under-management services; other fee-based financial services.

Customers and end markets

Consumer and commercial borrowers in Hawaii and the West Pacific; U.S. military personnel and defense-related businesses; investment management clients whose demand is sensitive to capital market conditions; mortgage borrowers subject to Hawaii foreclosure regulations.

Value-chain role

Deposit-taking and credit-intermediation institution; investment manager; mortgage originator and servicer operating in a geographically concentrated regional market.

Geographic exposure

Hawaii (primary market) and the West Pacific; material economic dependence on U.S. federal defense appropriations given the large U.S. military presence in Hawaii.

Source: SEC 10-K, filed 2026-02-24

Industry: State Commercial Banks Peers: Ameris Bancorp Associated Banc-Corp BancFirst Corp First Hawaiian Inc Cathay General Bancorp Community Financial System Inc Investors Bancorp, Inc. PACIFIC PREMIER BANCORP INC PNC Financial Services Group Inc United Community Banks Inc