Bank of Hawaii Corporation (BOH): Marketing Mix Analysis [Dec-2025 Updated]

You're looking for a sharp, current read on Bank of Hawaii Corporation's (BOH) market strategy, so here is the four P's analysis based on late 2025 financial and operational data. Honestly, digging into their mix shows a bank doubling down on its Hawaii roots-think 66 total branches-while aggressively growing digital services for its 250,000 active mobile users. The real story, though, is in the numbers: a 2.46% Net Interest Margin in Q3 2025 and a core lending portfolio that's still 56% consumer real estate, all while they push Wealth Management. Let's break down exactly how their Product, Place, Promotion, and Price stack up right now; you'll see the near-term opportunities clearly below.

Bank of Hawaii Corporation (BOH) - Marketing Mix: Product

You're looking at the core offerings of Bank of Hawaii Corporation, which are fundamentally services delivered across distinct client groups. The product structure is segmented to address the specific financial needs of the local economy, primarily operating through three main segments: Consumer Banking, Commercial Banking, and Treasury and Other.

The strategic direction emphasizes deepening relationships within specific high-value areas. For high-net-worth individuals, the focus is on expanding Wealth Management services. This is being executed through a modernized broker-dealer platform named Bankoh Advisors, recently teamed up with Cetera, designed to bring technology, client experience, and investment product enhancements to the mass affluent space. The overall product suite is designed to support the entire economic spectrum of the local market.

The core lending portfolio demonstrates a clear balance, with the Consumer Banking segment forming the largest part of the credit book. As of mid-2025, the core lending portfolio is 56% consumer, which translates to approximately $7.9 billion in total consumer loans. The Commercial Banking segment accounts for the remaining 44%, totaling about $6.1 billion in commercial loans. The performance of these products is reflected in the Return on Common Equity, which reached 13.6% in Q3 2025.

The composition of the consumer lending product set is heavily weighted toward secured assets, which speaks to the bank's risk-conscious product design. You can see the detailed breakdown here:

• Residential mortgage or home equity makes up 86% of the consumer portfolio.
• This secured consumer lending carries a weighted average Loan-to-Value (LTV) of just 48%.
• The combined weighted average FICO score for these secured loans is 800.
• The remaining 14% consists of auto and personal loans, with average FICO scores of 731 and 760, respectively.

The Commercial Banking segment supports businesses, including specialized services for the local Tourism Industry and Agricultural Lending through its commercial and industrial loans and commercial real estate mortgages. Loan production within the construction portfolio was a key driver of commercial loan growth in early 2025. The overall loan portfolio is geographically concentrated, with 93% of loans located in Hawaii.

Here is the summary of the total loan portfolio structure as of Q2 2025:

The bank offers a full suite of digital banking solutions to enhance product accessibility. As of Q1 2025, over 245,000 customers adopted the new mobile app, which features budgeting tools and mobile wallet integration. This digital offering allows clients to manage their accounts, including checking and savings, and utilize services like mobile check deposit and real-time alerts.

Bank of Hawaii Corporation (BOH) - Marketing Mix: Place

Place, or distribution, for Bank of Hawaii Corporation centers on maintaining a dominant physical footprint across its core markets while aggressively expanding digital accessibility. This strategy ensures that its services are available where and when the intended consumers need them, balancing traditional branch banking with modern digital channels.

Bank of Hawaii Corporation maintains a strong local market presence across Hawaii and the West Pacific region. The physical network is substantial, comprising a network of 66 total branches, with 56 of those located across the Hawaiian Islands. This density in the local market is a key differentiator for Bank of Hawaii Corporation.

The distribution strategy is actively evolving through the ongoing Branch of Tomorrow modernization program in 2025. This initiative focuses on updating physical locations to a modern, technology-focused concept. For example, the new Hana, Maui location, which received its blessing in August 2025, is a 464 sq. ft. space featuring a 24/7 Easy Deposit ATM.

The expansion into the broader region is marked by significant infrastructure investment. Bank of Hawaii Corporation opened its new West Pacific Regional Headquarters in Tamuning, Guam, in July 2025. This 18,361 sq. ft. headquarters houses a new Tamuning Branch, which is the first in the West Pacific to reflect the Branch of Tomorrow concept, featuring 5,147 sq. ft. of dedicated branch space.

Distribution is also heavily reliant on digital reach, supplementing the physical network. This includes extensive digital access via online banking platforms and a network of 93 ATM locations available to customers.

The Branch of Tomorrow modernization program is a multi-year investment across the footprint. Here's a look at the recent and near-term physical distribution upgrades:

• Eleele, Kauai: Opened March 11, 2024.
• Lahaina, Maui: Opened May 12, 2025.
• Tamuning, Guam: Opened July 14, 2025.
• Kau, Hawaii Island: Scheduled for 2025.
• Kona, Hawaii Island: Scheduled for 2025.
• Lanai: Scheduled for 2026.
• Kaunakakai, Molokai: Scheduled for 2026.

The physical distribution points are being strategically updated to enhance customer interaction and service delivery. The following table summarizes key details for the newest Branch of Tomorrow locations:

The multi-channel approach ensures accessibility. You can access Bank of Hawaii Corporation services through:

• Physical branch locations across Hawaii and the West Pacific.
• A network of 93 ATM locations.
• Online banking platforms.
• Mobile banking applications.

The opening of the West Pacific Regional Headquarters in Tamuning on July 14, 2025, signals a clear commitment to enhancing the distribution and service infrastructure in key international markets like Guam, Saipan, and Palau. Finance: review Q3 2025 branch transaction volume vs. digital adoption rate by end of Q4.

Bank of Hawaii Corporation (BOH) - Marketing Mix: Promotion

The promotion strategy for Bank of Hawaii Corporation centers on a dual approach, balancing extensive digital reach with deep, tangible local community involvement. This approach supports the brand messaging that emphasizes over 125 years of local connection and trust, stemming from its founding in 1897.

The emphasis on digital outreach is supported by industry trends showing digital channels now represent nearly 62% of bank marketing budgets, compared to 38% for offline channels in the 2025 period. Bank of Hawaii Corporation already reported a mobile banking app with 250,000+ active users and an online platform supporting 95% of banking transactions based on 2023 figures.

Data-driven personalization and targeted digital advertising campaigns are a core component. Specific digital advertising expenditure in 2023 totaled $1.8 million, broken down across platforms for focused reach.

The local community engagement aspect is reinforced through direct financial support and strategic partnerships. In 2023, Bank of Hawaii Corporation sponsored 42 local events, representing an investment of $1.1 million in community engagement, including Cultural Festivals ($500,000 investment across 18 events).

The support for local businesses is formalized through key collaborations, such as the ongoing partnership with Mana Up. Bank of Hawaii Corporation serves as the exclusive banking partner at the Founder Level for the Mana Up accelerator program, which has supported 95 entrepreneurs through its program as of late 2025. This partnership includes creating a new executive mentorship program.

Specific product promotions are deployed to drive customer acquisition and deposit growth. The current checking account offer provides a significant incentive for new customers to establish primary banking relationships.

• Bankohana II or III Checking Account Bonus: Up to $400 cash bonus.
• Initial Deposit Requirement: At least $500.
• Direct Deposit Requirement: $3,500 in Qualifying Direct Deposits within 60 days of account opening.
• Bonus Payout Window: Within 120 days from account opening.
• Offer Expiration: Noted as 12/31/2025.

The overall strength of the brand, which underpins these promotional efforts, is reflected in its market position; Bank of Hawaii Corporation advanced its number one deposit market share position in Hawaii by 40 basis points as of 6/30/2025, achieving fully diluted earnings per share of $1.20 in Q3 2025.

Bank of Hawaii Corporation (BOH) - Marketing Mix: Price

When you look at Bank of Hawaii Corporation (BOH) pricing, you're really looking at how they manage the spread between what they earn on assets and what they pay for funding, which is the core of their interest-based revenue strategy. This involves setting competitive loan yields while optimizing deposit costs to maximize the Net Interest Margin (NIM). This element of the marketing mix involves strategizing on pricing policies, discounts, financing options, and potential credit terms that would make the product competitively attractive and accessible to the target market.

The results from Q3 2025 clearly show this strategy is working, with the Net Interest Margin (NIM) expanding for the sixth consecutive quarter to 2.46% in Q3 2025. That's up from 2.39% in Q2 2025 and a significant jump from 2.18% in Q3 2024. This expansion is directly reflected in the top-line interest income figures.

Here's a quick look at the key interest-related performance metrics for the third quarter of 2025:

You can see the impact of asset repricing in the NII growth. The Q3 2025 Net Interest Income was $136.7 million, which reflects higher earning asset yields as fixed-rate assets rolled off at lower rates and were reinvested at higher current rates. Also, the average yield on loans and leases stood at 4.86% in Q3 2025.

On the funding side, the bank's deposit strategy is shifting towards higher-yielding deposits to optimize funding costs, even as the average quarterly rate of total deposits was 1.59% in Q3 2025, down 28 basis points from the same period last year. Average deposit balances increased by 7.1% annualized from the linked quarter, reaching $21.068 billion as of Q3 2025.

For specific lending products, Bank of Hawaii Corporation sets its pricing based on loan type and size. For instance, you'll find that they offer a 30-year fixed Jumbo mortgage rate of 5.750% (5.843% APR) as of late 2025, based on a 45-day lock for a purchase transaction. This rate is for loan amounts greater than $999,999, with a maximum loan amount for these specific terms being $1,209,750.

Pricing for deposit services involves specific fee structures designed to encourage certain behaviors, like maintaining balances or using direct deposit. For example, Bank of Hawaii Corporation charges an early closing fee of $40 for Convenience Checking accounts closed within 180 days of account opening. This contrasts with the $70 early closing fee assessed on Bankohana Accounts closed within the same 180-day window.

Pricing for shareholders is also evident in the dividend policy. The Board of Directors declared a quarterly cash dividend of $0.70 per common share, payable on December 12, 2025. That's a concrete return component of the overall financial pricing structure.

You should review the following specific pricing elements:

• 30-year fixed Jumbo Interest Rate: 5.750%
• 30-year fixed Jumbo Annual Percentage Rate (APR): 5.843%
• Convenience Checking Early Closing Fee: $40
• Quarterly Common Share Dividend: $0.70

Finance: draft 13-week cash view by Friday.