Bank of Hawaii Corporation (BOH): Análise de Pestle [Jan-2025 Atualizada]

No cenário dinâmico do banco havaiano, o Bank of Hawaii Corporation permanece como uma instituição financeira fundamental que navega por forças externas complexas que moldam sua trajetória estratégica. Essa análise abrangente de pestles revela a intrincada rede de fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais que influenciam profundamente o ecossistema operacional do banco. Do ambiente regulatório diferenciado às interrupções tecnológicas emergentes, exploraremos como o Banco do Havaí não apenas se adapta, mas também prospera em meio a um ecossistema financeiro em rápida evolução que exige agilidade, inovação e previsão estratégica.

Bank of Hawaii Corporation (BOH) - Análise de pilão: fatores políticos

Regulamentos bancários locais do Havaí

A partir de 2024, o Havaí mantém Community Reinvestment Act (CRA) Conformidade com diretrizes bancárias regionais específicas. A estrutura regulatória do estado apoia instituições financeiras focadas na comunidade por meio de requisitos direcionados de empréstimos e investimentos.

Métrica regulatória	Valor específico
Agências estaduais de supervisão bancária	Divisão de Instituições Financeiras do Havaí
Exames anuais de conformidade	2 revisões abrangentes obrigatórias
Requisito de empréstimo da comunidade	Investimento mínimo de 60% no mercado local

Impacto do ambiente político

A estabilidade política do Havaí influencia diretamente o desempenho do setor bancário. A governança consistente do estado apóia o crescimento do setor financeiro por meio de ambientes regulatórios previsíveis.

• Índice de Estabilidade Política: 7.4/10
• Apoio ao governo para serviços financeiros: alto
• Pontuação de previsibilidade regulatória: 8.2/10

Influência da política monetária do Federal Reserve

As políticas do Federal Reserve moldam significativamente as estratégias de empréstimos do Banco do Havaí. A taxa atual de fundos federais de 5,25 a 5,50% afeta diretamente os preços de empréstimos e a disponibilidade de crédito do Banco.

Métrica de política federal	2024 Valor
Taxa de fundos federais	5.25-5.50%
Ajuste do portfólio de empréstimos do Banco do Havaí	3,7% de recalibração trimestral

Iniciativas de diversificação econômica do estado

O governo do Havaí promove a diversificação econômica por meio de apoio financeiro direcionado a setores emergentes como tecnologia, energia renovável e serviços relacionados ao turismo.

• Orçamento de diversificação econômica do estado: US $ 127 milhões
• Investimento do setor de tecnologia: US $ 42,3 milhões
• Financiamento de desenvolvimento de energia renovável: US $ 35,6 milhões

Bank of Hawaii Corporation (BOH) - Análise de Pestle: Fatores Econômicos

Impacto de recuperação do turismo na receita do Banco do Havaí

A receita do turismo do Havaí em 2023 atingiu US $ 21,6 bilhões, com os gastos com visitantes aumentando 13,7% em comparação com 2022. O renda líquida do Banco do Havaí para 2023 foi de US $ 684 milhões, correlacionando -se diretamente com o desempenho do setor de turismo.

Ano	Gastos com visitantes	Receita de juros líquidos bancários
2022	US $ 19,0 bilhões	US $ 652 milhões
2023	US $ 21,6 bilhões	US $ 684 milhões

Dinâmica da taxa de juros

A taxa de fundos do Federal Reserve em janeiro de 2024 permaneceu em 5,33%. A carteira de empréstimos do Banco do Havaí totalizou US $ 11,2 bilhões no quarto trimestre 2023, com uma margem de juros líquidos de 2,84%.

Métrica	Valor
Empréstimos totais	US $ 11,2 bilhões
Margem de juros líquidos	2.84%
Taxa de fundos federais	5.33%

Resiliência econômica do Havaí

O PIB do Havaí em 2023 foi de US $ 99,4 bilhões, com taxa de desemprego em 3,6%. Os ativos totais do Banco do Havaí atingiram US $ 21,3 bilhões, demonstrando estabilidade econômica.

Indicador econômico	2023 valor
PIB do estado	US $ 99,4 bilhões
Taxa de desemprego	3.6%
Total de ativos bancários	US $ 21,3 bilhões

Adoção bancária digital

O Bank of Hawaii registrou 78% de penetração bancária digital em 2023. O volume de transações digitais aumentou 22%, reduzindo os custos operacionais em US $ 15,6 milhões.

Métrica bancária digital	2023 valor
Penetração bancária digital	78%
Aumento do volume de transações digitais	22%
Redução de custos operacionais	US $ 15,6 milhões

Bank of Hawaii Corporation (BOH) - Análise de pilão: Fatores sociais

A população envelhecida no Havaí cria um serviço bancário exclusivo e necessidades de planejamento de aposentadoria

De acordo com os dados do US Census Bureau 2020, a população do Havaí com 65 anos ou mais é de 17,3%, em comparação com a média nacional de 16,9%. Até 2030, este grupo demográfico deve atingir 24,5% da população total do Havaí.

Faixa etária	Porcentagem no Havaí	Média de economia de aposentadoria
65-74 anos	10.2%	$426,070
75 anos ou mais	7.1%	$294,350

O crescente grupo demográfico multicultural requer abordagens bancárias culturalmente sensíveis

A composição demográfica do Havaí em 2020: 37,6% branca, 37,2% asiática, 10,1% nas ilhas havaianas e do Pacífico, 2,4% preto, 10,7% duas ou mais raças.

Grupo étnico	Porcentagem populacional	Renda familiar média
Asiático	37.2%	$88,550
Branco	37.6%	$92,300
Ilhas havaianas/do Pacífico nativas	10.1%	$65,420

Aumentando a preferência por bancos digitais e móveis entre gerações mais jovens

Uso bancário móvel no Havaí: 78% dos millennials e 65% da geração Z usam regularmente plataformas bancárias móveis.

Geração	Adoção bancária móvel	Frequência de transação on -line
Millennials	78%	24 transações/mês
Gen Z	65%	18 transações/mês

Tendências de trabalho remotas que influenciam o comportamento bancário do consumidor e as expectativas de serviço

Estatísticas do trabalho remoto do Havaí: 42% dos funcionários trabalham remotamente em período integral ou meio período a partir de 2023.

Acordo de trabalho	Porcentagem de trabalhadores	Uso bancário digital médio
Controle remoto em tempo integral	18%	32 Transações/mês
Híbrido	24%	26 transações/mês

Bank of Hawaii Corporation (BOH) - Análise de Pestle: Fatores tecnológicos

Investimentos avançados de segurança cibernética para proteger plataformas bancárias digitais

O Banco do Havaí alocou US $ 12,4 milhões para infraestrutura de segurança cibernética em 2023, representando 3,7% do seu orçamento total de tecnologia. O banco implementou sistemas de autenticação multifatorial com uma taxa de proteção de 99,8% contra acesso não autorizado.

Métrica de segurança cibernética	2023 dados
Investimento anual de segurança cibernética	US $ 12,4 milhões
Taxa de prevenção de acesso não autorizada	99.8%
Incidentes de ameaça cibernética detectada	127
Mitigações de ameaça bem -sucedidas	126

Inteligência artificial e aprendizado de máquina Aprimorando os recursos de atendimento ao cliente

O Banco do Havaí implantou chatbots movidos a IA, lidando com 42% das interações de atendimento ao cliente, reduzindo os tempos de resposta em 67% e os custos operacionais em US $ 3,2 milhões anualmente.

Métrica de atendimento ao cliente da IA	2023 desempenho
Interações com o cliente tratadas pela IA	42%
Redução do tempo de resposta	67%
Economia anual de custos	US $ 3,2 milhões

Transformação digital contínua para competir com os serviços bancários on -line e fintech

O Bank of Hawaii investiu US $ 18,6 milhões em iniciativas de transformação digital, expandindo os recursos da plataforma bancária móvel com 247.000 usuários de banco digital ativo representando 63% da base total de clientes.

Métrica de transformação digital	2023 dados
Investimento de transformação digital	US $ 18,6 milhões
Usuários de bancos digitais ativos	247,000
Porcentagem de base de clientes	63%

Infraestrutura de computação em nuvem Melhorando a flexibilidade operacional e o gerenciamento de dados

O Banco do Havaí migrou 87% de sua infraestrutura de dados para plataformas em nuvem, alcançando 99,99% de tempo de atividade do sistema e reduzindo os custos de infraestrutura operacional em US $ 4,5 milhões.

Métrica de infraestrutura em nuvem	2023 desempenho
Migração da infraestrutura em nuvem	87%
Tempo de atividade do sistema	99.99%
Redução anual de custo de infraestrutura	US $ 4,5 milhões

Bank of Hawaii Corporation (BOH) - Análise de pilão: fatores legais

Conformidade estrita com regulamentos bancários federais e leis de proteção ao consumidor

O Bank of Hawaii Corporation adere a vários requisitos regulatórios federais, incluindo:

Estrutura regulatória	Detalhes da conformidade
Reforma de Dodd-Frank Wall Street	Implementação completa de todas as 5 principais seções regulatórias
Lei de Sigilo Banco	100% relatando conformidade para transações suspeitas
Diretrizes do Departamento de Proteção Financeira do Consumidor	Zero Violações de reclamações substanciadas do consumidor em 2023

Adaptação contínua aos requisitos de lavagem anti-dinheiro e relatórios financeiros

Investimento de conformidade regulatória: US $ 3,2 milhões alocados para atualizações tecnológicas de lavagem de dinheiro em 2024.

Métrica de relatório	Porcentagem de conformidade
Relatórios de atividades suspeitas	99,8% de taxa de envio oportuna
Relatórios de transação em moeda	100% de precisão em 2023

Mantendo estruturas robustas de governança corporativa

A estrutura de governança corporativa inclui:

• 9 membros do conselho independentes
• 4 comitês de conformidade no nível da placa
• Auditoria anual de governança corporativa conduzida por consultores externos

Navegando ao ambiente regulatório complexo para inovações de tecnologia financeira

Área de conformidade tecnológica	Status regulatório
Plataformas bancárias digitais	Totalmente compatível com as diretrizes de segurança cibernética do FFIEC
Segurança bancária móvel	Certificação SoC 2 Tipo II obtida
Monitoramento de transações blockchain	Mecanismos de relatórios alinhados a FinCen implementaram

Orçamento de conformidade legal para 2024: US $ 7,5 milhões dedicados à tecnologia regulatória e infraestrutura legal.

Bank of Hawaii Corporation (BOH) - Análise de Pestle: Fatores Ambientais

Compromisso com práticas bancárias sustentáveis ​​e opções de investimento verde

O Banco do Havaí alocou US $ 50 milhões em iniciativas de financiamento verde a partir de 2023. O portfólio de investimentos sustentável do banco atingiu US $ 275 milhões, representando um aumento de 12,4% em relação ao ano anterior.

Categoria de investimento verde	Valor total do investimento	Porcentagem de portfólio
Projetos de energia renovável	US $ 125 milhões	45.5%
Tecnologia limpa	US $ 85 milhões	30.9%
Agricultura sustentável	US $ 65 milhões	23.6%

Apoiando a conservação ambiental local

O Bank of Hawaii forneceu US $ 22,3 milhões em produtos financeiros direcionados para conservação ambiental no Havaí. Empréstimos de conservação específicos incluídos:

• Projetos de restauração de recifes de coral: US $ 5,7 milhões
• Preservação do ecossistema nativo: US $ 8,6 milhões
• Iniciativas de agricultura sustentável: US $ 7,4 milhões

Reduzindo a pegada de carbono

As transações bancárias digitais aumentaram para 87,3% do total de transações em 2023. Redução do consumo de energia alcançado 16,2% através de medidas de eficiência.

Métrica de eficiência energética	2023 desempenho	Mudança de ano a ano
Consumo de eletricidade	2,1 milhões de kWh	-14.5%
Emissões de carbono	1.450 toneladas métricas	-18.3%

Estratégias de avaliação de risco climático

O Bank of Hawaii implementou uma estrutura abrangente de avaliação de risco climática, cobrindo US $ 3,2 bilhões em carteiras de empréstimos e investimentos. As estratégias de mitigação de riscos identificaram possíveis impactos financeiros relacionados ao clima entre os setores.

Setor	Exposição total	Classificação de risco climático
Imobiliária	US $ 1,4 bilhão	Moderado
Turismo	US $ 750 milhões	Alto
Agricultura	US $ 350 milhões	Alto

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.

Metric	Value (as of June 30, 2025)	Significance
Deposit Market Share	34.5%	#1 position in Hawaii market
Market Share Increase (YoY)	40 basis points	Demonstrates continued local customer trust and growth
Total Deposits	$20.8 billion	Scale of community funds held by BOH

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.

Metric	Former BISI Platform (Pre-2025)	New Bankoh Advisors Platform (Post-2025)
Client Account Opening Time	~2 hours	~15 minutes
Trade/Money Movement Request Time	~5-7 minutes (via phone)	~1 minute (online)
Product Offerings	Limited	Expanded (including SMAs, broader insurance, 401K)
Assets Under Administration (AUA)	~$2.5 billion (as of Feb 2025)	Targeted for significant growth

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:

Capital Metric	Value (September 30, 2025)	Regulatory Status
Tier 1 Capital Ratio	14.34%	Well Above Minimums
Tier 1 Leverage Ratio	8.44%	Well Above Minimums
Return on Average Common Equity (Q3 2025)	13.59%	Strong Performance

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:

Metric / Factor	Value (Closest to 2025 FY)	Strategic Implication
Physical Assets 'Stressed' by 2030 (Third-Party)	91.9% of 62 assets	Requires continuous capital planning for resilience/relocation.
Commitment to Renewable Energy Initiatives (as of Dec. 31, 2023)	$159 million	Dual benefit: supports state decarbonization and diversifies loan portfolio.
Maximum Loan Forbearance Offered (Post-Maui Wildfires)	Up to 6 months	Directly manages credit risk and prevents mass defaults after a disaster.
Owned Branches/Buildings with Photovoltaic (PV) Installations	Over 60%	Reduces operational expense volatility from Hawaii's high electricity costs.

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.