Bank of Hawaii Corporation (BOH) SEC Filings & Earnings Calls

Hawaii Economic Weakness from Oil Price Shock

“Hawai‘i’s near-term economic outlook has weakened due to the Iran war's impact on oil prices, which is expected to raise inflation, increase travel costs, and slow growth in key visitor source markets.” · word for word

Jet Fuel Cost Impact on Air Travel

“Jet fuel prices have roughly doubled recently, resulting in significant transpacific airfare increases and prompting some airline capacity reductions.” · word for word

Japanese Yen Weakness Constraining Travel Demand

“Japanese travel demand remains constrained by the historically weak yen.” · word for word

Commercial Deposit Outflows

“Commercial deposits decreased by $430.0 million due to decreases of $220.0 million in savings deposits, $203.6 million in noninterest-bearing deposits, and $12.0 million in time deposits.” · word for word

Merchant Services Portfolio Sale Impact on Fee Income

“Fees, exchange, and other service charges decreased by $3.3 million or 23% in the second quarter of 2026 ... primarily due to lower merchant income following the sale of our merchant services portfolio in the fourth quarter of 2025.” · word for word

Net loan and lease charge-offs increased to $3.4M from $1.1M in the linked quarter, driven by higher gross charge-offs.

“Net loan and lease charge-offs during the second quarter of 2026 were $3.4 million or 10 basis points annualized of total average loans and leases outstanding. Compared to the linked quarter, net loan and lease charge-offs increased by $2.3 million or 7 basis points annualized on total average loans and leases outstanding.”

Deposit mix shift from noninterest-bearing to higher-yielding accounts continues to pressure funding costs.

“The increase was primarily driven by a 5 basis point increase in earning asset yield as fixed-rate assets rolled off and were reinvested at higher rates (fixed asset repricing), partially offset by a shift from noninterest-bearing deposits and interest-bearing deposits yielding less than 10 basis points to higher yielding interest-bearing deposits accounts (” · word for word

Hawaii Economic Slowdown

“Hawai‘i’s economy continues to experience slow and uneven growth amid lingering uncertainty.” · word for word

Tourism Demand Weakness

“Tourism conditions have stabilized but remain soft, with visitor volumes flat overall as continued weakness in most international markets offsets a modest recovery from Japan.” · word for word

Tariff and Inflation Pressure

“Inflationary pressures persist as the pass‑through effect of tariffs and tariff uncertainty, as well as the impact of recent military conflict on gasoline and electricity, continues to affect consumer prices.” · word for word

Consumer Confidence Erosion

“uncertainty due to the impact on travel of higher jet fuel prices and other increased travel costs and potential erosion of consumer confidence negatively impacting middle-class tourism demand.” · word for word

Weather Event Risk

“Recent Kona low storm events have also resulted in localized economic stress, with related impacts still evolving.” · word for word

Credit quality remains strong with low non-performing assets.

“Non-performing assets were $12.1 million, down $2.1 million from linked quarter.” · word for word

Hawaii Economic Concentration

“Our commercial and consumer lending activities are concentrated primarily in Hawai‘i and the West Pacific.”

Tourism Dependency

“Tourism conditions have stabilized but remain soft, with visitor volumes flat overall as continued weakness in most international markets offsets a modest recovery from Japan.”

Interest Rate Risk

“Net interest income is expected to increase as interest rates rise.”

Cybersecurity Risk

“The Board devotes significant time and attention to the oversight of artificial intelligence, cybersecurity and information security risk” · word for word

Regional economic concentration

“Our business and operations are primarily concentrated in Hawaiʻi and the Pacific Islands. The local economic conditions in these market areas have a significant impact on the Company’s ability to originate loans, the ability of the borrowers to repay these loans, and the value of the collateral securing these loans.” · word for word

Real estate concentration

“Our loan portfolio is largely secured by real estate, with a particular concentration of real estate located in Hawaiʻi and the West Pacific. As of December 31, 2025, our residential mortgage loans represented $4.8 billion, or 33.9%, of our total loan and lease portfolio and our commercial mortgage loans represented approximately $4.2 billion, or 29.9%, of o” · word for word

Interest rate sensitivity

“Our earnings are highly dependent on the spread between the interest earned on loans, leases, and investment securities and the interest paid on deposits and borrowings.” · word for word

Defense spending dependency

“The U.S. military has a major presence in Hawaiʻi and the West Pacific. As a result, the U.S. military is an important aspect of the economies in which we operate.” · word for word

Tariff/inflation risk

“A prolonged period of inflation or other period of high cost of goods such as a result of tariffs given that Hawaiʻi imports certain goods from Mexico, Canada and other countries that may become subject to tariffs, may impact our profitability.” · word for word

Leadership transition risk, though mitigated by internal promotion and consulting period.

“Ho plans to serve as a consultant to the company following his retirement through the end of 2027.” · word for word

Floating rate asset repricing down in lower rate environment could pressure NIM if deposit costs don't fall proportionally.

“The increase from the linked quarter was primarily driven by lower interest-bearing deposit rates, partially offset by a 1 basis point decline in earning asset yield, as the negative impact from floating rate assets repricing down in a lower rate environment outweighed the benefit from fixed rate assets rolling off at lower interest rates and being reinveste” · word for word

Investment securities unrealized losses

“Net unrealized losses in our AFS and HTM investment securities were $0.8 billion as of September 30, 2025 and $1.1 billion as of December 31, 2024.” · word for word

Loan portfolio concentration in Hawaii

“Our commercial and consumer lending activities are concentrated primarily in Hawai‘i and the West Pacific.” · word for word

Interest rate risk from securities repositioning

“In October 2025, we initiated the process of repositioning a portion of our AFS securities. As a result, we expect to realize a loss on the sale of certain securities during the quarter ending December 31, 2025 that is expected to range from $16 million to $17 million.” · word for word

Credit quality remains strong with low NPA and charge-off levels.

“NPA ratio 0.12%; net charge-offs 7bps annualized; provision $2.5M.”