Bank of Hawaii Corporation (BOH): PESTLE Analysis [Nov-2025 Updated]

Bank of Hawaii Corporation (BOH) is defintely a story of stability, backed by a strong $24.0 billion in total assets and a forecasted 2025 diluted EPS of $4.40. But for a regional bank with a 14.34% Tier 1 Capital Ratio, the real action isn't on Wall Street-it's in Honolulu, where rising federal compliance costs and unique climate risks fundamentally change the risk profile. You need to see how their core strengths stack up against these specific, local headwinds to make an informed decision.

The political environment for Bank of Hawaii Corporation centers on two things: stability and compliance cost. Hawaii's political stability is a huge plus for regional business confidence. Still, the federal and state regulatory scrutiny on consumer financial products is increasing, and that means higher operating costs. Compliance costs are rising due to new data privacy and security laws, which directly impact the bottom line. It's a cost of doing business, but BOH manages it well with strong corporate governance, including an independent board majority and a 2025 Code of Business Conduct & Ethics.

The cost of oversight is the new tax on regional banking.

BOH's economic story is one of consistent strength, especially in its core market. Hawaii's stable economic conditions keep asset quality high; nonperforming assets were remarkably low at just 12 basis points in Q3 2025. The bank has successfully expanded its Net Interest Margin (NIM) for the sixth consecutive quarter, reaching 2.46% in Q3 2025. This margin expansion is a key profit lever. Total assets stood at $24.0 billion as of September 30, 2025, showing modest, quality growth, and the bank is rock-solid with a Tier 1 Capital Ratio of 14.34%, well above regulatory minimums.

Here's the quick math: A higher NIM directly translates to the forecasted full-year 2025 diluted EPS (Earnings Per Share) of $4.40, up from the prior estimate of $4.14.

The bank's sociological strength is its deep community root, built on the culture of 'Ohana (family) and local presence. This translates directly to market share. BOH holds the leading deposit market share in Hawaii, which actually increased by 40 basis points as of June 30, 2025. They are leveraging this trust to drive future growth. The strategic focus now is on wealth management and high-net-worth segments, which are less rate-sensitive. Plus, BOH reports a positive net impact ratio of 37.4% on sustainability, largely driven by societal infrastructure and job creation in the islands.

Local trust is a moat against competition.

Technology for BOH is about balancing high-touch service with digital efficiency. They are modernizing their broker-dealer platform to 'Bankoh Advisors' to enhance the client experience. Digital adoption is strong; active mobile banking users have increased 29% since 2020. They are also investing in the 'Branch of Tomorrow' design to maximize efficiency and simplify transactions, not just cut costs. Still, cybersecurity risk remains a constant, high-priority threat that demands continuous investment across all digital banking platforms.

You can't skip the digital investment, even in paradise.

The legal environment mandates strict compliance, especially with the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. As a regional bank, BOH is subject to heightened regulatory oversight from the Federal Reserve and other agencies. To be fair, this oversight signals stability when handled correctly. Internal controls and Audit Committee procedures were updated in April 2025 to ensure compliance. The declared dividend payout of $0.70 per common share for Q4 2025 is a clear legal and financial signal of their stability and confidence in future earnings.

Compliance is a mandatory operating expense, not an option.

This is where BOH faces unique, non-traditional banking risks. The bank has direct exposure to climate change risks in Hawaii, including rising sea levels and extreme weather events. Natural disasters like typhoons and wildfires (e.g., Maui) pose a material risk to loan collateral and operations. BOH has integrated a commitment to environmental sustainability into its operations and risk management, which is crucial. They are also focused on reducing energy consumption through initiatives like LED lighting upgrades, but the core risk is external and geographic.

What this estimate hides is the true cost of a catastrophic weather event on the loan book.

Finance: draft 13-week cash view by Friday, focusing on the impact of a 2.46% NIM on Q4 projections.

Bank of Hawaii Corporation (BOH) - PESTLE Analysis: Political factors

The political environment for Bank of Hawaii Corporation (BOH) in 2025 is defined by a dual pressure: escalating federal regulatory costs in the US and the direct economic impact of federal policy uncertainty on its core Hawaii market. Your investment thesis must account for the high, non-negotiable cost of compliance in a post-Dodd-Frank world, plus the localized risk of a mild recession in the state of Hawaii.

Increased federal and state regulatory scrutiny on consumer financial products.

You are seeing a continued, aggressive focus from federal regulators, especially the Consumer Financial Protection Bureau (CFPB), on consumer financial products. Since Bank of Hawaii Corporation has total deposits of approximately $21.0 billion as of March 31, 2025, it falls squarely under the CFPB's broad rule-making and supervisory authority. This means more examinations and higher costs.

For example, the CFPB's Regulation Z saw an adjustment to the asset-size exemption threshold for certain insured depository institutions from the escrow requirement for higher-priced mortgage loans, raising it to $12.179 billion, effective January 1, 2025. This is a technical change, but it shows the constant, granular level of regulatory adjustment banks must track. Also, the threshold for higher-priced mortgage loans requiring special appraisal increased to $33,500 for 2025. It's a perpetual game of catch-up. The sheer volume of new rules is the main operational risk here.

Compliance costs rising due to new data privacy and security laws.

Compliance costs are defintely rising, not just from financial product rules but also from new data privacy and security laws. The company's own filings acknowledge that privacy and data breach laws expose it to civil litigation and governmental fines. This is a global trend-by 2025, Gartner estimates that 75% of the world's population will have their personal data covered under modern privacy regulations, which impacts BOH's operations in the West Pacific.

While a specific line item for regulatory fines isn't available, we can see the pressure in the noninterest expense line. Noninterest expense was $110.5 million in the first quarter of 2025 and rose slightly to $110.8 million in the second quarter of 2025. This increase was primarily due to higher FDIC insurance costs, which is a direct regulatory burden, plus the ongoing investment in systems to meet data security and anti-money laundering (AML) requirements.

The biggest near-term battleground is the CFPB's Section 1033 rule on financial data sharing. Banks are fighting this, arguing it forces them to shoulder the financial burden and fallout when a third-party fintech (financial technology) company mishandles consumer data. Compliance for this is expected in summer 2026, but the legal and system preparation is a 2025 cost.

Political stability in Hawaii and the West Pacific directly influences regional business confidence.

The local political climate, heavily influenced by federal policy, is a major headwind for BOH in 2025. The University of Hawai'i Economic Research Organization (UHERO) forecasts a mild recession for the state, primarily driven by expansive federal policy shifts like US import tariffs and overall policy uncertainty. This directly hits business confidence and loan demand.

Here's the quick math on the local economic stress:

• Real visitor spending is projected to see a $1.6 billion reduction by 2026.
• Total visitor arrivals are projected to decline by 4% over the next two years.
• The Honolulu Consumer Price Index (CPI) is forecast to exceed 4% in both 2025 and 2026, increasing inflation risk.

A soft tourism market and high inflation mean less consumer lending and commercial real estate activity, which are BOH's bread and butter. The bank's presence in the West Pacific (Guam, Saipan, Palau) also exposes it to the geopolitical dynamics of the region, though Hawaii's stability remains the primary factor.

Strong corporate governance with a 2025 Code of Business Conduct & Ethics and independent board majority.

On the corporate governance front, Bank of Hawaii Corporation maintains a strong, defensive posture, which is a positive political signal to investors and regulators alike. The Board of Directors is comprised of a majority of independent directors, meeting the NYSE listing standards. All three key Board committees are composed entirely of independent directors.

This structure is formalized in the company's 2025 Code of Business Conduct & Ethics and Corporate Governance Guidelines. This commitment to independence helps mitigate the risk of internal conflicts and provides a credible check on management, a crucial factor when dealing with heightened regulatory scrutiny.

Finance: Track BOH's noninterest expense growth against the Honolulu CPI forecast to gauge the true cost of operating in this politically and economically challenging environment.

Bank of Hawaii Corporation (BOH) - PESTLE Analysis: Economic factors

Hawaii's Stable Economic Conditions Support Asset Quality

The economic environment in Hawaii provides a solid, if geographically concentrated, base for Bank of Hawaii Corporation's (BOH) operations. This stability is most clearly reflected in the bank's exceptional asset quality. You want to see a low level of nonperforming assets (NPA) on the balance sheet, which are loans or leases where the borrower is not making payments. BOH's figure is defintely a positive sign.

As of September 30, 2025, nonperforming assets as a percentage of total loans and leases and foreclosed real estate stood at a mere 0.12%, or 12 basis points. This is a very low figure, suggesting that the local economy-driven by tourism, defense spending, and real estate-is keeping borrowers healthy. Total non-performing assets were just $16.9 million at the end of the third quarter. That's a tiny fraction of their overall loan book.

Net Interest Margin (NIM) Expansion and Profitability

A major tailwind for BOH's economic performance is the continued expansion of its Net Interest Margin (NIM), which is the difference between the interest income generated and the amount of interest paid out. This is the core profitability engine for any bank, and it's been running efficiently.

The NIM reached 2.46% in the third quarter of 2025, marking the sixth consecutive quarter of expansion. This growth is primarily due to the bank's fixed-rate assets repricing at higher current interest rates and lower interest-bearing deposit rates, a classic benefit in a rising or sustained higher-rate environment. For the quarter, net interest income climbed to $136.7 million.

Full-Year 2025 Diluted EPS Forecast

When analysts boost their earnings outlook, it signals confidence in the bank's ability to translate those strong NIM and asset quality metrics into shareholder value. Zacks Research, for example, recently revised its full-year 2025 diluted Earnings Per Share (EPS) forecast upward.

The new forecast from Zacks Research is for BOH to post an EPS of $4.40 per share for the full year 2025, a significant increase from their prior estimate of $4.14. This is well above the broader consensus estimate of $3.97 per share. For context, the bank's actual Q3 2025 diluted EPS was already strong at $1.20, beating the consensus estimate of $1.13.

Balance Sheet Strength and Capitalization

A bank's total assets and capital ratios are the bedrock of its economic stability. You want to see modest growth in assets and capital levels that far exceed regulatory minimums-this is your buffer against any unexpected economic shocks.

BOH's balance sheet remains robust and well-capitalized:

• Total assets stood at $24.0 billion as of September 30, 2025, showing modest growth of 1.3% from the linked quarter.
• The bank's Tier 1 Capital Ratio was 14.34% at the end of Q3 2025. This is a key metric, and this level is significantly higher than the regulatory well-capitalized minimums, giving management flexibility.

Here's the quick math on the key Q3 2025 economic indicators:

The takeaway is simple: BOH is financially sound, growing its core profitability, and benefiting from a low-risk local economy. The next step is to monitor if the NIM expansion can continue into Q4 2025, especially given the Zacks Q4 2025 EPS estimate of $1.17.

Bank of Hawaii Corporation (BOH) - PESTLE Analysis: Social factors

You're looking at Bank of Hawaii Corporation (BOH) not just as a financial entity, but as a deeply embedded social institution in Hawaii. The social factors here are critical, as BOH's entire competitive moat is built on local trust and cultural connection. Their ability to maintain a leading deposit share and execute their wealth management strategy hinges on this social license to operate.

Leading deposit market share in Hawaii, which increased by 40 basis points as of June 30, 2025.

BOH's local dominance is a direct result of decades of social and community presence. As of June 30, 2025, the bank solidified its number one deposit market share position in Hawaii, increasing it by an impressive 40 basis points from the prior year's FDIC Summary of Deposits. This growth is a clear indicator of local customer defintely choosing a familiar, trusted institution over mainland competitors.

The strength of this local preference is quantifiable. Total deposits stood at $20.8 billion at the end of the second quarter of 2025. Since 2005, BOH has grown its market share by a cumulative 600 basis points, a growth rate that significantly outpaces any other competitor in the Hawaiian market. This isn't just a financial metric; it's a social one-it shows where the community stores its wealth.

Deeply rooted community focus with a culture built on 'Ohana (family) and local presence.

The bank's culture is intrinsically linked to the Hawaiian concept of 'Ohana (family), which translates into a strong, relationship-based business model. This commitment is not just marketing; it's a core value that has been cultivated since the bank's founding in 1897. This deep local tie-in gives BOH an unmatched brand awareness in the islands.

In a blind study commissioned by the bank, unaided brand awareness in Hawaii stood at 82% for BOH, which is an extremely high figure for any financial institution. This level of recognition and trust is a substantial barrier to entry for outside banks. The community focus also extends to philanthropic efforts, which totaled nearly $3.4 million in 2022 (the latest full year data available) through the bank, its employees, and the Bank of Hawaii Foundation, supporting social causes and community infrastructure. This is how they earn their social capital.

• Unaided Brand Awareness: 82% in Hawaii, a measure of social mindshare.
• Cultural Foundation: 'Ohana (family) and kuleana (responsibility) guide community approach.
• Longevity: Operating in Hawaii since 1897, providing stability through economic cycles.

Strategic focus on wealth management and high-net-worth segments for future growth.

While BOH dominates the mass-market deposit space, its next big social opportunity lies in capturing the high-net-worth segment. Hawaii is a uniquely wealthy market, boasting the highest average net worth per household in the U.S. at $260,000, which is far above the national average of $71,000. This is a massive pool of local capital they need to capture.

Currently, BOH holds only about 3% of the wealth management market in Hawaii. To address this, they launched a new platform, Bankoh Advisors, in the mass affluent space, partnering with Cetera to modernize their broker-dealer platform. This move directly targets the local high-net-worth individuals (HNWI) who are looking for a trusted, local partner to manage their wealth, especially given the upcoming reduction in the federal estate tax exemption in 2026, which will spur demand for wealth transfer planning. This is a clear, actionable growth vector.

Positive net impact ratio of 37.4% on sustainability, driven by societal infrastructure and job creation.

BOH's commitment to social sustainability is formally measured, providing a clear metric for its positive societal contribution. The bank has a net impact ratio of 37.4%, according to The Upright Project, which quantifies a company's holistic value creation. This is a strong positive signal for socially conscious investors and local stakeholders.

The largest positive impacts driving this ratio are directly related to social and economic factors in the islands. The top three value categories BOH creates are Societal infrastructure, Taxes, and Jobs. This means the core business-lending for local projects, paying taxes into the local system, and employing residents-is the primary engine of its positive social footprint. What this estimate hides, of course, is the negative impact from things like scarce human capital and GHG emissions, but the net result is still strongly positive.

Bank of Hawaii Corporation (BOH) - PESTLE Analysis: Technological factors

The technological landscape for Bank of Hawaii Corporation (BOH) in 2025 is defined by a dual strategy: aggressive digital modernization to meet customer demand and a physical branch redesign that integrates technology for efficiency. This is not about simply keeping up; it is about using technology to fundamentally change the customer experience (CX) and drive down operational friction.

Honest assessment: You cannot be a regional leader in 2025 without a mobile-first approach, and BOH is spending to make that happen. They're also smart to use technology to make their physical branches more relevant, not obsolete, in a geographically dispersed market like Hawaii.

Modernization of the broker-dealer platform to 'Bankoh Advisors' for enhanced client experience.

BOH is executing a critical upgrade of its wealth management arm, Bankoh Investment Services, Inc. (BISI), by partnering with Cetera to launch the new Bankoh Advisors platform. This move is a direct response to the industry's need for faster, more seamless client onboarding and transaction processing. The old system was clunky and time-intensive, creating unnecessary friction for high-value clients.

The core benefit is a massive reduction in the time it takes for clients to get started and execute trades. This is a game-changer for the mass affluent space, where BISI had approximately $2.5 billion in assets under administration (AUA) as of February 28, 2025. Plus, the bank expects to increase its number of financial advisors by more than 50%, leveraging the new platform's efficiency to scale their human capital.

Continued digital adoption; active mobile banking users increased 29% since 2020.

Digital adoption continues to be a central growth driver, reflecting the broader market trend where 77% of U.S. consumers prefer to manage their accounts via a mobile app or computer. BOH rolled out major enhancements to its mobile and online platforms in the back half of 2024, providing a seamless experience across devices. The mobile app is highly rated, boasting 4.8 stars based on over 11,000 ratings in the iOS app store. This is a defintely strong indicator of user satisfaction.

Here's the quick math on digital engagement:

• 245,000 customers upgraded to the new app experience in the first few months of its launch.
• The bank processed 7.3 million transactions via digital wallets (Apple Pay, Google Pay, etc.) in 2024, demonstrating a clear shift to contactless payments.

This digital momentum is critical for maintaining market share against mainland competitors and fintechs (financial technology companies) that are increasingly targeting the Hawaiian market.

Ongoing investment in 'Branch of Tomorrow' design to maximize efficiency and simplify transactions.

While digital is paramount, BOH understands the need for a modernized physical presence in its island communities. The 'Branch of Tomorrow' initiative is an investment in this hybrid model, focusing on smaller, more efficient spaces that prioritize consultation over simple transactions. New branches are being opened or renovated across the islands in 2025.

The new design maximizes efficiency by integrating self-service technology:

• New branches, such as the 464 sq. ft. Hana Branch and the 1,920 sq. ft. Ka'ū Branch, feature a smaller footprint.
• They include private Pili rooms for in-person or virtual consultations with advisors.
• The installation of 24/7 Easy Deposit ATMs simplifies basic transactions, freeing up staff for complex customer needs.

In 2025 alone, BOH opened or completed renovations on several key locations, including Lahaina, Maui (May 12, 2025), Tamuning, Guam (July 14, 2025), and Ka'ū, Hawaii Island (November 3, 2025).

Cybersecurity risk remains a constant, high-priority threat for all digital banking platforms.

The downside of digital transformation is the elevated and persistent threat of cyberattacks (cybersecurity risk). For a bank that handles large volumes of customer data, including personally identifiable information, the protection and integrity of that data is a top-tier risk management priority. The Board of Directors dedicates significant time to the oversight of this risk, integrating it into the overall Enterprise Risk framework.

BOH is making significant investments in security system enhancements, policies, and continuous employee training. While a specific 2025 cybersecurity budget is not public, BOH's Q1 2025 expense projections included an allocation of 1% of expenses for revenue-enhancing technology initiatives, which includes security. This aligns with the industry trend: a 2025 survey of U.S. bank executives showed that 86% considered cybersecurity a top concern and their biggest area for budget increases, with 88% planning to increase their IT spending by at least 10%.

Bank of Hawaii Corporation (BOH) - PESTLE Analysis: Legal factors

The legal and regulatory framework for Bank of Hawaii Corporation (BOH) is an incredibly tight constraint, but also a source of competitive strength. As a regional bank, you are under constant, heightened scrutiny from federal and state agencies. The key takeaway is that BOH's financial metrics for 2025 show they are not just compliant, but operating with a significant capital buffer, which is the defintely the best defense against regulatory risk.

Strict compliance with Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations is mandatory.

For any bank, strict adherence to the Bank Secrecy Act (BSA) and its anti-money laundering (AML) protocols is non-negotiable. This isn't just a paperwork exercise; it's the core defense against financial crime, and failure here results in massive fines and reputational damage. The legal requirement is to maintain a risk-based program, which for BOH means continuously monitoring transactions in its unique Hawaii market.

The complexity of compliance is always increasing, especially with FinCEN (Financial Crimes Enforcement Network) updates, which require financial institutions to still collect Beneficial Ownership Information (BOI) from customers under the Customer Due Diligence (CDD) Final Rule, even with other recent changes to the Corporate Transparency Act (CTA).

This means BOH must invest heavily in technology and training to manage the constant flow of Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs). You can't cut corners on this.

Subject to heightened regulatory oversight from the Federal Reserve and other agencies for regional banks.

As a Bank Holding Company (BHC), Bank of Hawaii Corporation is subject to extensive regulation, primarily from the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Hawaii Division of Financial Institutions. These regulations are designed to protect the integrity of the U.S. banking system, not just shareholders.

The key metric here is capital adequacy. BOH has consistently maintained capital levels well above the regulatory 'well-capitalized' minimums, which is a strong signal to regulators and the market. For example, the Tier 1 Capital Ratio was a robust 14.34% as of September 30, 2025, and the Tier 1 Leverage Ratio was 8.44%. This fortress-like capital structure is what allows the bank to operate with confidence.

Here's a quick snapshot of the capital position as of Q3 2025:

Internal controls and Audit Committee procedures updated in April 2025 to ensure compliance with laws and regulations.

The company's commitment to internal governance is formally documented, with the Audit Committee updating its 'Complaints and Concerns Procedures for Accounting and Internal Control Matters' on April 25, 2025. This procedure is crucial because it establishes a formal, non-retaliatory channel for employees to report concerns about accounting, auditing, or internal controls, ensuring compliance with laws like the Sarbanes-Oxley Act of 2002.

The Audit Committee's role is to oversee the receipt and treatment of these complaints, which directly impacts the reliability of financial reporting and compliance with applicable laws. Furthermore, shareholders ratified Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, at the annual meeting held on the same day.

Key governance actions in 2025 include:

• Updated Audit Committee Procedures on April 25, 2025.
• Approval of the 2025 Director Stock Compensation Plan.
• Ratification of the independent registered public accounting firm for the 2025 fiscal year.

Dividend payout of $0.70 per common share declared for Q4 2025, demonstrating financial stability.

A tangible sign that BOH is navigating the legal and economic landscape effectively is its consistent dividend. The Board of Directors declared a quarterly cash dividend of $0.70 per common share on October 27, 2025. This dividend is payable on December 12, 2025, to shareholders of record on November 28, 2025.

This payment demonstrates financial stability because the dividend is well-covered by earnings. The bank's dividend payout ratio is approximately 68%, which is a healthy level that signals sustainability and confidence in future earnings. The annual dividend is $2.80 per share, giving a yield of around 4.4%. This is a clear, concrete action that shows the legal and financial controls are working to support shareholder returns.

Bank of Hawaii Corporation (BOH) - PESTLE Analysis: Environmental factors

You need to see the environmental factors not just as a compliance headache, but as a direct, near-term risk to your balance sheet, especially with a loan portfolio heavily secured by island real estate. The primary takeaway is that Bank of Hawaii Corporation (BOH) faces a High Physical Risk Level for its assets, but it is actively mitigating its own operational footprint and financing the state's transition.

Direct exposure to climate change risks in Hawaii, including rising sea levels and extreme weather events.

The geographic concentration of Bank of Hawaii Corporation's operations makes it defintely more vulnerable to physical climate risks than a mainland bank. The core risk is the potential deterioration of loan collateral value, as a significant portion of the bank's portfolio is secured by real estate in Hawaii and the West Pacific. Climate change impacts like rising sea levels and increased extreme weather events directly threaten this collateral.

A third-party analysis of BOH's physical assets highlights the severity of this exposure. Out of 62 physical assets analyzed, 91.9% are categorized as 'Stressed' and 6.5% are 'Stranded' by the 2030 climate horizon, with Cyclone risk being a top adaptation priority. This isn't a theoretical long-term problem; it's a tangible, near-term threat to asset stability. The bank's ability to manage this will be crucial for maintaining its credit quality, which remains exceptional as of the first quarter of 2025.

Natural disasters like typhoons and wildfires (e.g., Maui) pose a risk to loan collateral and operations.

Natural disasters are a constant operational and credit risk, and the 2023 Maui wildfires provided a real-world stress test. The fire destroyed roughly 2,200 structures-with 85% being homes-and though BOH stated that loans to customers impacted were not material to their total portfolio, the event clearly depressed real estate values in the affected areas.

The bank's immediate response included offering up to 6 months of loan forbearance for residential mortgages and home equity loans to affected customers, which helps mitigate immediate default risk but extends the credit-monitoring period. This response demonstrates an empathetic, community-focused risk management approach, but it also shows the direct link between environmental events and loan servicing costs. BOH is also rebuilding its Lahaina Branch at a new location to restore essential financial services.

Here's the quick math on their climate-related exposure and response:

Commitment to environmental sustainability integrated into operations and risk management.

BOH has formalized its environmental, social, and governance (ESG) focus since 2021, aligning its reporting with the Sustainability Accounting Standards Board (SASB). This commitment is evident in their role as a community leader in financing renewable energy. As of December 31, 2023, the bank had committed $159 million to various renewable energy projects, which is a significant investment that aligns their lending strategy with the state's goal of a zero-emissions economy by 2045.

This integration is not just about lending; it's about enterprise risk management (ERM). Climate-related risk is now a horizontal risk that amplifies traditional risk types like credit and operational risk. Their strategy is to reduce their own impact while strengthening resilience against physical risks.

Focus on reducing energy consumption through initiatives like LED lighting upgrades.

The bank is systematically reducing its operational carbon footprint and exposure to Hawaii's high energy costs. They have installed photovoltaic (PV) systems on over 60% of their owned branches and buildings. This is a smart move, given the high average electricity price in Hawaii.

Specific projects show their dedication to efficiency:

• PV installations on owned facilities include three large systems of 561kW, 350kW, and 100kW.
• The Kahului Branch on Maui features a 40kW carport-mounted PV system, battery storage, and a full-building LED retrofit, intended to annually offset the branch's energy consumption.
• Their disaster recovery data center partner operates on 100% renewable energy, reducing BOH's Scope 3 emissions.

These initiatives not only reduce their carbon footprint but also improve operational resilience, especially when combined with participation in Hawaiian Electric Company's Fast Demand Response program at their two largest O'ahu facilities. They are making their core operations more resilient one branch at a time.

Finance: draft 13-week cash view by Friday, focusing on the impact of a 2.46% NIM on Q4 projections.