Bank Of Hawaii Stock Earnings Reports

Bank of Hawaii reported Q3 2025 diluted EPS of $1.20 (+29% YoY, +13% QoQ) on continued NII and NIM expansion. NIM improved 7 bps to 2.46 (sixth consecutive quarter of expansion) and management believes 2.50% NIM by year-end is reasonably possible with further expansion expected over multiple quarters. ROCE was 13.6%. Average deposits increased at a 7% annualized rate; loans grew modestly with management expecting low-single-digit loan growth into 2026. Credit quality remains strong: net charge-offs were immaterial, NPAs and delinquencies improved, ACL was $148.8M (1.06% of loans). Strategic initiatives include an upgraded wealth platform (Banco Advisors, via Saterra) to capture wealth market share in Hawaii and tighter coordination between commercial and wealth teams. The bank repositioned its interest rate swap book (ending the quarter with $1.4B pay-fixed swaps and $600M forward starting) and sold its merchant services business (one-time gain ~ $18M) while replacing ~$200M of low-yield securities with higher-rate securities (expected +$1.7M quarterly NII). Management expects two Fed cuts this year (modeled) with an initial small hit to NII per cut but eventual net benefit as CDs reprice. Capital remains strong (Tier 1 14.3%); dividend declared at $0.70 per share and management signaled likely share repurchases in Q4 and into next year. Expense guidance: Q4 normalized non-interest expense ~ $109M; 2026 expense growth expected modestly above 2025's plan (management referenced about mid-single-digit modeling vs prior guidance).