Bank of Hawaii Corporation (NYSE:BOH) reported second-quarter earnings that slightly exceeded Wall Street expectations, with higher net income and continued improvement in net interest margin supporting quarterly performance.
The lender posted diluted earnings per share of $1.47 for the quarter, topping analysts’ consensus estimate of $1.46 by one cent. Shares were little changed in after-hours trading following the earnings release.
Net interest income and profitability improve
Net income increased 11.1% from the previous quarter to $63.8 million, while net interest income rose 1.7% to $153.6 million.
Net interest margin expanded by four basis points to 2.78%, marking the ninth consecutive quarter of improvement as the bank continued to benefit from the repricing of interest-earning assets.
Total loans and leases grew 1.5% from December 31, 2025, reaching $14.3 billion.
“Bank of Hawai’i delivered solid second quarter results reflecting steady execution and disciplined balance sheet management,” said Jim Polk, President and CEO. “Net interest margin expanded for the ninth consecutive quarter, supported by the ongoing repricing of cash flows.”
Deposits edge lower while credit quality remains solid
Total deposits declined 1.4% from the end of 2025 to $20.9 billion, with noninterest-bearing deposits accounting for 26.7% of the total deposit base.
Average deposits also slipped 0.7% during the quarter to $20.8 billion.
The provision for credit losses increased to $3.6 million from $1.8 million in the first quarter, primarily reflecting higher net charge-offs of $3.4 million.
Despite the increase in provisions, asset quality remained strong. Non-performing assets fell to $11.5 million, representing just 0.08% of total loans and leases.
Share buybacks and dividend continue
During the quarter, Bank of Hawaii repurchased approximately 216,000 shares for a total cost of $17.0 million as part of its capital return strategy.
The board of directors also declared a quarterly dividend of $0.70 per common share, which will be paid on September 15, 2026.
Bank of Hawaii Corp stock price
