|
|
|
|
|||||
|
|
|
It has been about a month since the last earnings report for Bank of Hawaii (BOH). Shares have added about 2.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Bank of Hawaii due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Bank of Hawaii Corporation before we dive into how investors and analysts have reacted as of late.
Bank of Hawaii reported fourth-quarter 2025 earnings per share of $1.39, which beat the Zacks Consensus Estimate of $1.25. The bottom line compared favorably with 85 cents in the year-ago quarter.
Results benefited from an increase in net interest income and fee income growth. Also, higher loan and deposit balances, along with lower provisions, were encouraging. However, an increase in expenses acted as a key spoilsport.
The company’s net income (GAAP basis) came in at $60.9 million, up 55.6% year over year.
For 2025, EPS was $4.63, which surpassed the Zacks Consensus Estimate of $4.50. This compares favorably with $3.46 reported in 2024. The company reported a net income (GAAP basis) of $205.9 million, which rose 37.3% year over year.
The company’s quarterly revenues increased 16.2% year over year to $189.6 million. The top line surpassed the Zacks Consensus Estimate by 3.9%.
Full-year revenues were $716.6 million, which increased 12.1% year over year. The top line surpassed the Zacks Consensus Estimate of $714.1 million.
NII was $145.4 million, up 20.9% year over year. NIM increased 42 basis points to 2.61%. Our estimate for NII and NIM was pegged at $135.8 million and 2.54%, respectively.
Non-interest income came in at $44.3 million, up 2.8% year over year. This included an $18.1 million gain from the sale of the merchant services portfolio, a $16.8 million loss on the sale of investments and a $0.8 million charge related to a Visa Class B share conversion ratio change. Adjusted for these items, non-interest income increased 3.1% year over year. This rise was primarily driven by higher trust and asset management income and other loan fees.
Non-interest expenses rose 1.5% year over year to $109.5 million. It included a $1.4 million reduction in the FDIC special assessment charge, a $1.1 million donation to the Bank of Hawai‘i Foundation, and approximately $2.2 million in non-recurring Merchant Services expenses. Adjusted for these items, non-interest expense increased 3.9% from adjusted non-interest expenses recorded in the year-ago quarter. The increase was primarily driven by higher salaries and benefits and other expenses, partially offset by lower professional fees.
The efficiency ratio was 57.75%, down from 66.12% in the year-ago period. A fall in the efficiency ratio reflects increased profitability.
As of Dec. 31, 2025, total loans and leases increased slightly from the prior-quarter end to $14.1 billion.
Total deposits rose marginally on a sequential basis to $21.2 billion.
As of Dec. 31, 2025, non-performing assets were $14.2 million, which declined 26.6% year over year.
Net loan and lease charge-offs were $4.1 million, up $0.7 million from the year-ago quarter.
Provision for credit losses was $2.5 million, down 33.3% from the year-ago quarter.
The allowance for credit losses declined 1.2% to $146.8 million.
As of Dec. 31, 2025, the Tier 1 capital ratio was 14.49%, up from 13.95% as of Dec. 31, 2024. The total capital ratio was 15.54%, which rose from 15.00% in the year-ago period.
The ratio of tangible common equity to risk-weighted assets was 10.35%, which increased from 9.08% at the end of the year-ago quarter.
Return on average assets was 1.01% at the end of the fourth quarter of 2025, which increased from 0.66% in the prior-year quarter. Return on average shareholders' equity was 13.33%, up from 9.42% as of Dec. 31, 2024.
Q1 2026
NIM is expected to expand further from the December exit level of 2.67%, supported by lower deposit costs and ongoing fixed asset repricing.
Normalized non-interest income is projected to be in the range of $42 million to $43 million.
Normalized non-interest expense is anticipated to be approximately $113 million, reflecting seasonal payroll taxes and incentive-related costs.
2026
Loans are expected to grow in the mid-single-digit range.
NIM is projected to approach 2.90% by the end of 2026, driven by fixed asset repricing, improving deposit mix and benefits from prior rate cuts.
Expenses are expected to increase 3% to 3.5% from the normalized 2025 base.
The effective tax rate is anticipated to be close to 23%.
Share repurchases are expected to increase to $15–$20 million per quarter, subject to growth conditions and capital levels.
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 6.57% due to these changes.
At this time, Bank of Hawaii has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Bank of Hawaii has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Bank of Hawaii is part of the Zacks Banks - West industry. Over the past month, Columbia Banking (COLB), a stock from the same industry, has gained 3.1%. The company reported its results for the quarter ended December 2025 more than a month ago.
Columbia Banking reported revenues of $717 million in the last reported quarter, representing a year-over-year change of +47.2%. EPS of $0.82 for the same period compares with $0.71 a year ago.
Columbia Banking is expected to post earnings of $0.68 per share for the current quarter, representing a year-over-year change of +1.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.4%.
Columbia Banking has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 2 hours | |
| 4 hours | |
| Feb-23 | |
| Feb-23 | |
| Feb-23 | |
| Feb-20 | |
| Feb-13 | |
| Feb-11 | |
| Feb-09 | |
| Feb-05 | |
| Feb-04 | |
| Feb-03 | |
| Feb-03 | |
| Feb-03 | |
| Feb-03 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite