Bank of Hawai‘i beats Q2 estimates as earnings, net interest margin, loan growth, and credit quality improve.
Stock Earnings Results
July 27, 2026
Table of Contents
July 27, 2026
Bank of Hawai‘i Corporation (NYSE: BOH) reported second-quarter 2026 results above expectations, supported by higher earnings, expanded net interest margin, loan growth, strong credit quality, and share repurchases.
Bank of Hawai‘i is an independent regional financial services company serving businesses, consumers, and governments in Hawai‘i and the West Pacific. Its principal subsidiary, Bank of Hawai‘i, was founded in 1897.
The company reported diluted EPS of $1.47, above estimates of $1.46, representing a 0.7% earnings surprise. Revenue came in at $269.42 million, above estimates of $198.31 million, with revenue growth of 2.3%.
Net income was $63.8 million, up 11.1% from the linked quarter.
Diluted earnings per common share were $1.47, compared with $1.30 in the first quarter.
Net income available to common shareholders was $58.5 million.
Net interest income was $153.6 million, up 1.7% from the linked quarter.
Noninterest income was $43.3 million, up 4.8% from the linked quarter.
Pre-provision net revenue was $85.7 million, compared with $76.3 million in the linked quarter.
Net interest margin increased to 2.78%.
That was up 4 basis points from the prior quarter.
Management said the improvement reflected higher earning asset yields as fixed-rate assets rolled off and were reinvested at higher rates.
The average yield on total earning assets increased to 4.08%.
The average yield on loans and leases increased to 4.79%.
Loan originations during the quarter had an average rate of 5.90%.
Noninterest expense was $111.2 million, down 4.2% from the linked quarter.
The decline was helped by lower compensation-related items.
Adjusted for restricted stock and separation expense items, noninterest expense decreased 0.2% from the linked quarter.
The efficiency ratio improved to 56.47%, compared with 60.35% in the first quarter.
That improvement suggests the bank benefited from stronger revenue and tighter expense control.
Provision for credit losses was $3.6 million, up from $1.8 million in the linked quarter.
The increase was mainly driven by higher net loan and lease charge-offs.
Total non-performing assets were $11.5 million at quarter-end, down from $12.1 million at March 31.
Non-performing assets were 0.08% of total loans and leases and foreclosed real estate.
The allowance for credit losses on loans and leases was $147.0 million.
The allowance ratio was 1.03% of total loans and leases outstanding.
Total loans and leases were $14.3 billion at June 30, up 1.5% from December 31.
Commercial loans increased 2.6% from year-end.
Consumer loans increased 0.6% from year-end.
Total deposits were $20.9 billion, down 1.4% from December 31.
Noninterest-bearing deposits made up 26.7% of total deposits at quarter-end, down from 27.2% at year-end.
Average total deposits were $20.8 billion, down 0.7% from December 31.
Bank of Hawai‘i repurchased 216,000 shares for $17.0 million during the quarter.
The company had $88.9 million remaining under its share repurchase program at quarter-end.
The board declared a quarterly cash dividend of $0.70 per share.
The dividend is payable September 15, 2026, to shareholders of record as of August 31.
The company said capital levels remained well above regulatory well-capitalized minimums.
Bank of Hawai‘i delivered a solid regional bank quarter.
EPS beat estimates, net income improved from the prior quarter, net interest margin expanded for the ninth consecutive quarter, and credit quality remained strong. The company also continued returning capital through buybacks and dividends.
The key question is whether Bank of Hawai‘i can keep expanding margin while managing deposit costs, maintaining credit quality, and growing loans in a competitive banking environment.
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