Bank of Hawaii knows there's no place like home. The corporation is the holding company for Bank of Hawaii (familiarly known as Bankoh), which has about 70 branches in its home state, plus an additional dozen in American Samoa, Guam, Palau, and Saipan. Founded in 1897, the bank operates through four business segments: retail banking for consumers and small businesses in Hawaii; commercial banking, including property/casualty insurance, for middle-market and large corporations (this segment also includes the bank's activities beyond the state); investment services such as trust, asset management, and private banking; and treasury, which performs corporate asset and liability management services.
Banking in paradise isn't always easy: Hawaii is known for its high cost of living and its reliance upon the tourism industry. As the second-largest bank on the archipelago, Bankoh's performance often mirrors that of the state since loans secured by homes and new home construction represent the largest portion of the company's lending. Due the recent economic environment in the state, the bank has curtailed its lending activities, which cut into its bottom line. Its 2011 results were also negatively impacted by a federal law that went into effect the previous year that puts caps on overdraft fees.
The company's growth -- limited by geography -- comes methodically. Bankoh has more than 500 ATMs in its market and continuously looks for ways to expand. It has installed some 60 ATMs inside McDonald's restaurants throughout Hawaii, and in 2009 it introduced ATMs inside McDonald's restaurants in Guam. In addition to growing its ATM network, Bankoh has also introduced a special mobile banking fleet, which includes shuttle-sized vehicles that offer ATMs and wireless technology inside.