Bank Of Hawaii Stock Earnings Reports

Bank of Hawaii reported a solid Q1 2026 driven by continued NIM expansion and lower deposit costs. NIM rose 13 bps (eighth consecutive quarter of expansion) as the bank remixed $643M of fixed-rate loans/investments (roll-off ~4% to roll-on ~5.6%) and benefited from a 17 bp decline in average total deposit cost (deposit beta ~36%). Management reiterated the goal of approaching ~2.9% NIM by year-end and said the bank’s fixed-asset repricing engine should add roughly 20 bps of NIM annually; longer-term terminal NIM could be in the ~3.25%–3.50% range absent rate cuts. Credit remains strong: net charge-offs were immaterial ($1.1M), nonperforming assets declined, ACL coverage steady at 1.04% (ACL $147M) and management reserved a $3.2M qualitative overlay for ~15–20 property exposures related to recent storms. Loan growth guidance is for low-single-digit growth for the year (overall portfolio), with consumer/residential trends mixed (purchase activity fine; HELOC and indirect lending softer). Wealth management is a strategic priority with near-term improvements from Bankoh Advisors but more meaningful upside expected into 2027. Expenses included seasonal payroll/tax items plus a $3.5M accelerated stock-vesting charge; normalized noninterest expense guidance is ~$112M for Q2 and annual overhead growth guidance trimmed to ~2.5%–3%. Capital and liquidity are strong: well-capitalized ratios (Tier 1 14.4%), dividend of $0.70 declared, and ongoing share repurchases (management plans an additional $15M–$20M in Q2; ~$106M buyback capacity remains). Management is monitoring external risks (Middle East tensions, energy costs, recent local storms) but affirmed disciplined, relationship-driven lending concentrated in Hawaii.