Bank Of Hawaii Stock Earnings Reports

Bank of Hawaii reported a solid Q1 2026: net interest income and net interest margin expanded for the eighth consecutive quarter (NIM +13 bps in Q1) driven by continued fixed-rate asset repricing and materially lower deposit costs (average cost of total deposits down 17 bps; deposit beta ~36%). Management remains on track to approach a ~2.90% NIM by year-end and sees longer-term structural NIM in the ~3.25%–3.50% range absent rate cuts. Normalized EPS was $1.39; reported EPS was $1.30 and net income was $57.4M (Q1 includes seasonal payroll taxes and some one-time compensation/severance charges). Loan growth guidance is modest: management is targeting low single-digit loan growth for the year (overall), waiting for more macro clarity before upgrading to mid-single-digits. Credit quality is excellent: net charge-offs were immaterial ($1.1M), nonperforming assets remain very low, ACL coverage steady at 1.04% (ACL $147M) and includes a $3.2M qualitative overlay for ~15–20 storm-impacted properties. Management emphasized minimal exposure to private credit and negligible nonbank intermediary lending. Capital is strong (Tier 1 = 14.4%), the board declared a $0.70 quarterly common dividend, the company repurchased ~$15M of stock in Q1 and plans another $15M–$20M in Q2 ( ~$106M remains available under the plan). Strategic priorities include expanding wealth management capabilities (Bankoh Advisors, Cetera partnership, Center for Family Business & Entrepreneurs), continued investment in people and technology (including AI use cases) and disciplined capital deployment. Key risks flagged: geopolitical tensions, energy/inflation pressures, tourism sensitivity, and early assessment of typhoon/storm impacts.