BOH

The market expects Bank of Hawaii (BOH) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 26, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This bank holding company is expected to post quarterly earnings of $1.52 per share in its upcoming report, which represents a year-over-year change of +26.7%. Revenues are expected to be $203.16 million, up 11.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.79% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Bank of Hawaii, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.17%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Bank of Hawaii will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Bank of Hawaii would post earnings of $1.46 per share when it actually produced earnings of $1.47, delivering a surprise of +0.68%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Bank of Hawaii doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Banks - West industry, First Hawaiian (FHB), is soon expected to post earnings of $0.6 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +1.7%. This quarter's revenue is expected to be $229.71 million, up 1.5% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for First Hawaiian has been revised 7.5% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that First Hawaiian will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 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 Bank of Hawaii Corporation (BOH) : Free Stock Analysis Report First Hawaiian, Inc. (FHB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Northrim BanCorp (NRIM) came out with quarterly earnings of $0.6 per share, missing the Zacks Consensus Estimate of $0.71 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -15.49%. A quarter ago, it was expected that this holding company for Northrim Bank would post earnings of $0.61 per share when it actually produced earnings of $0.68, delivering a surprise of +11.48%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Northrim, which belongs to the Zacks Banks - West industry, posted revenues of $57.41 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 2.89%. This compares to year-ago revenues of $66.58 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Northrim shares have lost about 9.4% since the beginning of the year versus the S&P 500's gain of 12.8%. While Northrim has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Northrim was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.64 on $54.6 million in revenues for the coming quarter and $2.68 on $215.1 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Bank of Hawaii (BOH), has yet to report results for the quarter ended September 2026. The results are expected to be released on October 26. This bank holding company is expected to post quarterly earnings of $1.52 per share in its upcoming report, which represents a year-over-year change of +26.7%. The consensus EPS estimate for the quarter has been revised 1.8% higher over the last 30 days to the current level. Bank of Hawaii's revenues are expected to be $203.16 million, up 11.2% from the year-ago quarter. 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 Northrim BanCorp Inc (NRIM) : Free Stock Analysis Report Bank of Hawaii Corporation (BOH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bank of Hawaii has delivered a 61.5% gain over the past three years, even though shorter term returns have been more muted. With the stock now around US$68.72, the key issue is whether that price still lines up with the earnings power of this regional bank. - A 61.5% return over three years puts longer term shareholders in a strong position and raises the question of how much of Bank of Hawaii's earnings strength is already reflected in the share price. - The group's model as a regional lender, with a focus on interest income, credit quality and fee-based services, can shape how durable its earnings are across different rate and credit cycles. - The analysts covering Bank of Hawaii have run their own numbers. See what analysts think Bank of Hawaii's shares could be worth. The stock's next move may depend on whether Bank of Hawaii's current earnings justify paying around US$68.72 today. If you are weighing whether Bank of Hawaii's earnings justify today's valuation, it can help to compare that question across a wider set of 28 high quality undervalued stocks. The P/E ratio is a useful anchor for a lender like Bank of Hawaii because earnings are the core driver of long term value for a traditional bank model. Bank of Hawaii currently trades on a P/E of 12.6x, which is slightly above the Banks industry average of 11.5x but well below the broader peer group average of 23.7x. That mix of signals indicates the stock is not being priced as a bargain basement regional bank, yet it is also not being treated like the higher multiple financials in the wider peer set. The implied Fair Ratio suggests what a tailored P/E might look like once you factor in Bank of Hawaii's profitability profile, balance sheet strength and risk picture. The current 12.6x multiple sits very close to that reference point, which means the market price is roughly in line with what this framework would expect you to pay for each dollar of earnings. For an investor, the next step is to decide whether the quality and durability of those earnings justify paying that kind of earnings multiple today. Explore the numbers behind Bank of Hawaii's P/E valuation. Simply Wall St Narratives for Bank of Hawaii pick up where the valuation puzzle leaves off by spelling out which paths for future growth, profitability and earnings would need to hold for the stock to trade meaningfully higher or lower than today's level. Each view ties its number to a concrete stance on where Bank of Hawaii's growth, margins and risk profile could head next, giving you a reference point you can revisit as fresh information comes through on the Community page. One of the top community narratives on Bank of Hawaii: 21% undervalued "Deepening customer relationships and expansion in wealth management and trust services are leveraging the aging and increasingly affluent population..." Discover why this Narrative puts Bank of Hawaii at 21% undervalued. Price and profits only tell part of the story for Bank of Hawaii, because recent trading by its own insiders can offer a very different kind of signal. See the recent insider selling flagged for Bank of Hawaii. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BOH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Let's dig into the relative performance of Bank of Hawaii (NYSE:BOH) and its peers as we unravel the now-completed Q2 regional banks earnings season. Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges. The 94 regional banks stocks we track reported a mixed Q2. As a group, revenues were in line with analysts' consensus estimates. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.9% since the latest earnings results. Founded in 1897 as a financial anchor for the newly annexed Hawaiian territory, Bank of Hawaii (NYSE:BOH) is a financial institution providing banking, investment, and insurance services primarily to customers in Hawaii, Guam, and other Pacific Islands. Bank of Hawaii reported revenues of $199.3 million, up 13.2% year on year. This print was in line with analysts' expectations, but overall, it was a slower quarter for the company with a miss of analysts' net interest income estimates and EPS in line with analysts' estimates. "Bank of Hawai'i delivered solid second quarter results reflecting steady execution and disciplined balance sheet management," said Jim Polk, President and CEO. The market seems disappointed with the results as the stock is down 16.2% since reporting and currently trades at $70.33. Read our full report on Bank of Hawaii here, it's free. Originally founded in 1964 as a federal savings and loan institution, OFG Bancorp (NYSE:OFG) provides banking and financial services including commercial and consumer lending, wealth management, insurance, and trust services primarily in Puerto Rico and the U.S. Virgin Islands. OFG Bancorp reported revenues of $190.3 million, up 4.4% year on year, outperforming analysts' expectations by 3.9%. The business had an exceptional quarter with a beat of analysts' EPS estimates and an impressive beat of analysts' net interest income estimates. The market seems content with the results as the stock is up 3.2% since reporting. It currently trades at $51.62. Is now the time to buy OFG Bancorp? Access our full analysis of the earnings results here, it's free. Originally established in 1941 and now operating with a tech-forward approach that includes its SmartStreet platform for homeowner associations, Banc of California (NYSE:BANC) is a California-based bank holding company that provides banking services to small and middle-market businesses, entrepreneurs, and individuals. Banc of California reported revenues of $285.7 million, up 4.7% year on year, falling short of analysts' expectations by 3.1%. It was a disappointing quarter as it posted a significant miss of analysts' tangible book value per share estimates and a significant miss of analysts' net interest income estimates. As expected, the stock is down 15% since the results and currently trades at $18.00. Read our full analysis of Banc of California's results here. Founded during the 2008 financial crisis with a vision to reimagine small business banking through technology, Live Oak Bancshares (NYSE:LOB) is a bank holding company that specializes in providing online banking services and SBA-guaranteed loans to small businesses across targeted industries nationwide. Live Oak Bancshares reported revenues of $160.1 million, up 11.4% year on year. This print topped analysts' expectations by 3.2%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts' net interest income estimates and a beat of analysts' EPS estimates. The stock is down 9.6% since reporting and currently trades at $37.11. Read our full, actionable report on Live Oak Bancshares here, it's free. Dating back to 1858 as Hawaii's oldest bank with deep roots in the Pacific island communities, First Hawaiian (NASDAQ:FHB) operates a full-service community bank providing deposit accounts, commercial and consumer loans, credit cards, and wealth management services across Hawaii, Guam, and Saipan. First Hawaiian Bank reported revenues of $228.5 million, up 5% year on year. This result was in line with analysts' expectations. Aside from that, it was a slower quarter as it recorded a slight miss of analysts' net interest income estimates and a narrow beat of analysts' EPS estimates. The stock is down 13.5% since reporting and currently trades at $24.78. Read our full, actionable report on First Hawaiian Bank here, it's free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market's biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market's primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market's dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Bank of Hawaii’s second quarter results were met with a negative market reaction, as revenue growth came in below Wall Street expectations despite a solid 12% year-over-year increase. Management attributed the shortfall to seasonally lower deposits and persistent competition for funding, which limited opportunities for deposit cost improvement. CEO Jim Polk emphasized that net interest margin expanded for the ninth consecutive quarter, driven by ongoing repricing of fixed assets and disciplined deposit pricing, but acknowledged that the deposit environment remains highly competitive. Polk described the bank’s core deposit franchise as a critical strength supporting stability, though he noted that “the competitive environment for deposits remains elevated as customers continue to prioritize yield.” Is now the time to buy BOH? Find out in our full research report (it’s free). Revenue: $199.1 million vs analyst estimates of $199.7 million (13.2% year-on-year growth, in line) Adjusted EPS: $1.47 vs analyst estimates of $1.46 (in line) Market Capitalization: $3.15 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jeff Rulis (D.A. Davidson) asked about the sustainability of wealth management growth without market tailwinds. CEO Jim Polk responded that fee growth is supported by both ongoing production and recent investments, making it sustainable even if markets soften. Matthew Clark (Piper Sandler) inquired about deposit pricing competition and the need for promotional rates. CFO Brad Satenberg said competition has led to some upward movement in CD rates, but exception pricing remains limited and manageable. Jared Shaw (Barclays) sought clarity on the expected pace of share repurchases. Satenberg indicated $20 million per quarter in the near term, with further plans to be reevaluated going into 2027. Andrew Terrell (Stephens) questioned the drivers behind the loan growth outlook, particularly on commercial lending. Polk explained that a healthy pipeline and delayed project closings give confidence in meeting low- to mid-single digit loan growth targets. Kelly Motta (KBW) asked about expense discipline and the impact of public deposit runoff. Satenberg confirmed that expense guidance remains unchanged and that the runoff targets higher-cost public deposits, which should help manage funding costs. In the coming quarters, the StockStory team will be watching (1) whether Bank of Hawaii can sustain net interest margin expansion amid heightened deposit competition, (2) the pace of commercial loan growth and the successful closing of projects in the pipeline, and (3) the impact of strategic runoff of high-cost public deposits on overall funding costs. Progress in wealth management and continued credit stability will also be important signposts. Bank of Hawaii currently trades at $79.90, down from $83.97 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Bank of Hawaii Corporation BOH reported second-quarter 2026 earnings per share (EPS) of $1.47, which beat the Zacks Consensus Estimate of $1.46. The bottom line also improved from $1.06 in the year-ago quarter. Shares of the company lost 4.7% in yesterday’s trading session despite posting better-than-expected results. BOH’s results benefited from higher net interest income (NII), margin expansion, solid loan growth and strong credit quality. However, lower fee income and a decline in deposit balances remained headwinds. The company’s net income (GAAP basis) came in at $63.8 million, up 34% year over year. BOH’s quarterly revenues increased 13% year over year to $196.9 million. The top line missed the Zacks Consensus Estimate of $198.3 million. NII was $153.6 million, up 18% year over year. Net interest margin (NIM) increased 39 basis points to 2.78%. Our estimate for NII and NIM was $154.8 million and 2.80%, respectively. Non-interest income was $43.3 million, down 3% year over year. The decline was mainly due to lower fees, exchange and other service charges and higher net investment securities losses, partially offset by higher trust and asset management fees, annuity and insurance income and bank-owned life insurance income. Our estimate for the metric was $42.1 million. Non-interest expenses rose marginally year over year to $111.2 million. Higher salaries and benefits, occupancy, equipment, professional fees and FDIC insurance costs were largely offset by lower other expenses. Our estimate for the metric was $112.9 million. The efficiency ratio was 56.47%, down from 63.49% in the year-ago period. A lower efficiency ratio indicates improved profitability. As of June 30, 2026, total loans and leases increased nearly 1% from the prior quarter to $14.3 billion. Our estimate for total loans and leases was $13.9 billion. Total deposits decreased marginally on a sequential basis to $20.9 billion. Our estimate for total deposits was $21.1 billion. As of June 30, 2026, non-performing assets were $11.5 million, down 36% year over year. Our estimate for the metric was $13.9 million. Net loan and lease charge-offs were $3.4 million, up from $2.6 million in the year-ago quarter. Our estimate for the metric was $1.1 million. Provision for credit losses was $3.6 million, up from $3.3 million a year earlier. Our estimate for the metric was $2.7 million. The allowance for credit losses declined 1% year over year to $147 million. Our estimate for the metric was $148.6 million. As of June 30, 2026, the Tier 1 capital ratio was 14.45%, up from 14.17% as of June 30, 2025. The total capital ratio increased to 15.48% from 15.23% a year ago. The ratio of tangible common equity to risk-weighted assets was 10.38%, up from 9.62% at the end of the year-ago quarter. Return on average assets was 1.07% at the end of the second quarter of 2026, up from 0.81% in the prior-year quarter. Return on average shareholders' equity improved to 13.74% from 11.21% a year ago. In the reported quarter, Bank of Hawaii repurchased 216 thousand shares of common stock at a total cost of $17 million. As of June 30, 2026, the total remaining buyback authority under the share repurchase program was $88.9 million. Higher NII, continued margin expansion, healthy loan growth and a strong capital position are expected to support BOH's financial performance. Nonetheless, muted fee income growth, elevated expenses and deposit pressure are likely to remain challenges. Bank of Hawaii Corporation price-consensus-eps-surprise-chart | Bank of Hawaii Corporation Quote Currently, BOH carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Regions Financial Corporation RF has posted adjusted second-quarter 2026 earnings of 68 cents per share, beating the Zacks Consensus Estimate of 64 cents. Also, this compares favorably with earnings of 60 cents in the year-ago quarter. Increases in net interest income, wealth management income, service charges and lower provisions supported RF’s results. However, higher non-interest expenses and securities losses played spoilsport. The PNC Financial Services Group, Inc. PNC delivered adjusted earnings per share of $4.85 in the second quarter of 2026, beating the Zacks Consensus Estimate of $4.51 and up from $3.85 a year ago. PNC’s results reflected higher net interest income, strong fee income growth, an improvement in the net interest margin and solid loan growth. However, higher expenses and a decline in the deposit balance were headwinds. 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 Bank of Hawaii Corporation (BOH) : Free Stock Analysis Report Regions Financial Corporation (RF) : Free Stock Analysis Report The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Diluted Earnings Per Share (EPS): $1.47, up 13% from the prior quarter. Net Income: $63.8 million, up 11% from the prior quarter. Return on Average Common Equity: 15.5%. Net Interest Income (NII): $153.6 million, increased by $2.6 million from the prior quarter. Net Interest Margin (NIM): Expanded by 4 basis points to 2.78%. Average Cost of Deposits: 127 basis points. Total Loans Growth: Increased by $94 million, representing annualized growth of approximately 2.6%. Consumer Loans: 56% of total loans, approximately $8 billion. Commercial Loans: 44% of total loans, totaling $6.2 billion. Nonperforming Assets: Declined to 8 basis points. Net Charge-Offs: $3.4 million, or 10 basis points annualized. Allowance for Credit Losses (ACL): $147 million, ratio of ACL to outstandings at 1.03%. Noninterest Income: $43.3 million, up from $41.3 million in the prior quarter. Noninterest Expense: $111.2 million, down from $116.1 million in the prior quarter. Provision for Credit Losses: $3.6 million. Effective Tax Rate: 22.3%. Common Stock Dividends: $28 million paid. Common Shares Repurchased: $17 million at an average price of approximately $78 per share. Warning! GuruFocus has detected 6 Warning Sign with BOH. Is BOH fairly valued? Test your thesis with our free DCF calculator. Release Date: July 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bank of Hawaii Corp (NYSE:BOH) reported a solid quarter with diluted earnings per share of $1.47 and net income of $63.8 million, reflecting increases of 13% and 11% respectively from the prior quarter. The net interest margin expanded by 4 basis points to 2.78%, marking the ninth consecutive quarter of margin expansion. Credit quality remains strong with low delinquencies, nonperforming assets, and net charge-offs, indicating robust asset quality. The Wealth Management division showed strong performance, benefiting from market conditions and increased customer demand for advisory-related services. The bank's strategic initiatives, such as the Center for Family Business and Entrepreneurs, are developing a strong client pipeline, enhancing its advisory capabilities. Average deposits declined modestly from the prior quarter, following a seasonal pattern, which may limit opportunities for deposit cost improvement in the near term. The competitive environment for deposits remains elevated, with customers prioritizing yield, potentially impacting deposit pricing. The criticized asset ratio increased to 2.81% from 2.12%, driven by a single borrower relationship, although the exposure is well secured by real estate. The absence of similar residential project closings is likely to moderate third-quarter growth in consumer lending. The cost of interest-bearing liabilities increased slightly, reflecting the rise in deposit costs and competitive deposit pricing pressures. Q: Can you provide an outlook for the wealth management segment for the rest of the year? A: James Polk, President and CEO, stated that the wealth management segment is expected to sustain its current performance, driven by both market conditions and production. Investments in Bankoh Advisors and the overall wealth platform have been fruitful, with increased efficiency and additional products contributing to growth. Q: What is the expectation for the net interest margin (NIM) by year-end, and what factors contribute to this forecast? A: Bradley Satenberg, CFO, indicated that the NIM is expected to reach approximately 2.90% by the end of the year. This forecast includes a projected rate hike in September and is supported by fixed asset repricing and a moderated deposit mix shift. Q: How are you managing deposit costs and competition in the current environment? A: Bradley Satenberg, CFO, noted that while competition has increased slightly, the bank is strategically managing deposit costs. There is a focus on growing deposits, particularly through CDs, with slight increases in rates for 3 and 12-month categories. Q: What is the outlook for loan growth, particularly in the commercial segment? A: James Polk, President and CEO, expressed confidence in achieving low to mid-single-digit loan growth for the year. The commercial pipeline is healthy, and while consumer growth may moderate, the overall outlook remains positive. Q: How are you approaching public deposits, and what impact might this have on your balance sheet? A: Bradley Satenberg, CFO, mentioned that public deposits are about $2 billion of the total deposit base, with plans to strategically allow 10% to 15% of high-cost public deposits to run off. This approach aims to optimize the balance sheet by reducing reliance on higher-cost funds. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved ninth consecutive quarter of net interest margin expansion, driven by the continuous repricing of fixed-rate assets and disciplined deposit pricing strategies. Performance attribution for the quarter includes a 13% increase in diluted EPS, supported by improved earnings power and a return on average common equity of 15.5%. Loan growth of 2.6% annualized was led by C&I and residential lending, the latter benefiting from the specific closing of a large condominium project. The deposit franchise remains a core structural advantage, with non-interest-bearing deposits maintaining a stable 27% share of the total mix despite seasonal outflows. Wealth management growth was driven equally by favorable market conditions and new production, specifically within trust fees and the Cetera partnership. Hawaii's economy remains resilient with 1.6% real growth projected for 2026, supported by low unemployment and strong military and construction investment. Credit quality remains a hallmark of the franchise, with net charge-offs at 10 basis points and a loan portfolio characterized by high FICO scores and low LTVs. Management maintains a target net interest margin approaching 2.9% by year-end 2026, assuming one 25-basis point rate hike in mid-September. Loan growth for the full year is projected in the lower mid-single digit range, though consumer growth is expected to moderate in Q3 following the completion of major residential projects. The bank plans to strategically allow approximately 10%-15% of higher-cost public deposits (priced between 3.5%-4%) to run off in the third quarter. Capital allocation strategy includes a planned $20 million in share repurchases for both the third and fourth quarters of 2026. Normalized non-interest expense is forecasted at approximately $112.5 million for the third quarter, aligning with a full-year growth target of 3%. The criticized asset ratio increased to 2.81% from 2.12%, though management attributed this entirely to a single, well-secured borrower relationship rather than systemic weakness. The competitive environment for deposits remains elevated as customers prioritize yield, which may limit near-term opportunities for further deposit cost improvements. Non-interest income included recurring charges related to BCP conversion ratio changes, which management treats as normalizing items for performance tracking. CRE refinancing risk is mitigated by the portfolio structure, with over 60% of loans maturing in 2030 or later and weighted average LTVs below 60%. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that if one looked at the performance in Q3 on the wealth management side, the increase in fees was driven probably half by market and half by production. Growth is expected to be sustainable due to investments in the Bankoh Advisors platform and increased efficiency from the Cetera partnership. The 2.90% target is an exit rate for December rather than a quarterly average. The trajectory assumes a 5-basis point improvement per quarter driven by fixed asset repricing and a moderating deposit mix shift. The bank intends to let high-cost public funds (3.5%-4% range) run off to optimize the margin. This strategy is expected to result in a $100 million to $200 million decline in average earning assets in the near term. Management reported that loan spreads remain stable and the market is behaving rationally despite competitive pressures. The bank does not currently see a risk of significant spread compression on incremental reinvestment yields.

Interested in Bank of Hawaii Corporation? Here are five stocks we like better. Strong second-quarter performance: Bank of Hawaii reported net income of $63.8 million, or $1.47 per diluted share, up 11% and 13% sequentially, respectively. Net interest margin expanded four basis points to 2.78%, marking its ninth consecutive quarter of improvement. Margin and lending outlook remains positive: Management expects net interest margin to approach 2.9% by year-end and reiterated full-year loan growth in the lower-middle-single-digit range, supported by commercial and residential lending. However, higher-cost public deposits and some seasonal balances are expected to run off in the third quarter. Credit quality and capital remain solid: Nonperforming assets stayed low at 0.08%, while the rise in criticized assets to 2.81% was attributed to one well-secured borrower relationship. The bank repurchased $17 million of shares, plans additional buybacks, and maintained its $0.70 quarterly dividend. 2 Regional Banks to Buy Amid the Chaos Bank of Hawaii (NYSE:BOH) reported second-quarter 2026 net income of $63.8 million, or $1.47 per diluted share, as net interest income and net interest margin continued to rise. Net income increased 11% from the prior quarter, while diluted earnings per share rose 13%, President and CEO James Polk said on the company’s earnings call. Return on average common equity improved to 15.5%. Net interest income rose to $153.6 million, and net interest margin expanded four basis points sequentially to 2.78%, marking the company’s ninth straight quarter of margin expansion. → MarketBeat Week in Review – 07/20- 07/24 Polk said the margin improvement reflected repricing in the bank’s fixed-rate assets and disciplined deposit pricing. The average cost of deposits was essentially stable at 1.27% during the quarter. Management said it continues to expect net interest margin to approach 2.9% by year-end, based on its interest-rate assumptions. Chief Financial Officer Brad Satenberg said the company’s forecast assumes a 25-basis-point rate increase in mid-September, with December net interest margin expected to be “just about 290.” → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Satenberg said earning-asset yields increased five basis points in the quarter, aided by a $2.8 million contribution from fixed-asset repricing. He expects earning-asset yields to continue improving at a similar pace through the rest of the year if interest rates remain stable. Deposit pricing has become more competitive as customers continue to prioritize yield, executives said. The company’s deposit beta declined slightly to 35.5%, while the cost of deposits was expected to settle in a range of 1.25% to 1.3% in the near term. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Average deposits declined modestly in the second quarter, which Polk characterized as seasonally typical for Bank of Hawaii. Noninterest-bearing deposits represented about 27% of total deposits at quarter-end. During the question-and-answer session, management said the quarter also included outflows of project-related condominium funds and described the decline in noninterest-bearing deposits as part of normal seasonal fluctuations. The bank expects certain higher-cost public deposits to run off in the third quarter. Satenberg said public deposits total approximately $2 billion and that 10% to 15% of that balance could run off during the quarter, primarily deposits carrying rates of roughly 3.5% to 4%. Total loans increased $94 million during the quarter, representing annualized growth of about 2.6%. Commercial and industrial lending and residential mortgages drove the increase, while commercial real estate growth was affected by payoffs and the timing of deal closings. Residential mortgage growth benefited from the completion and closing of a large condominium project. Polk said that without similar projects in the near term, residential lending growth is expected to return to a more organic level in the third quarter. He also cited challenges in indirect auto lending and home-equity lending due to elevated rates and vehicle financing costs. Still, management reiterated its outlook for full-year loan growth in the lower-middle-single-digit range. Polk said the commercial lending pipeline began building early in the year and remains healthy, with some deals expected in the second quarter closing during the third quarter instead. Management said loan spreads have remained stable, with no current indication of significant compression in the approximately 160-basis-point spread between maturing and adjustable-rate cash flows and reinvestment yields. Chief Risk Officer Brad Shairson said credit performance remained strong. Net charge-offs totaled $3.4 million, or 10 basis points annualized, compared with an unusually low three basis points in the first quarter that reflected a large recovery. Nonperforming assets declined one basis point to eight basis points, while delinquency levels increased one basis point to 41 basis points. The criticized asset ratio rose to 2.81% from 2.12%, driven by a single borrower relationship rather than broader portfolio weakness, Shairson said. The associated loans continue to perform and are well secured by real estate. Consumer loans represented 56% of total loans, or about $8 billion. Residential mortgage and home-equity loans accounted for 86% of consumer loans, with a weighted average loan-to-value ratio of 49% and weighted average FICO score of 799. Commercial loans totaled $6.2 billion, or 44% of total loans, with 72% secured by real estate. Commercial real estate loans totaled $4.3 billion, representing 30% of total loans. The allowance for credit losses on loans and leases ended the quarter at $147 million, unchanged from the prior quarter. The allowance-to-loans ratio was 1.03%. Noninterest income increased to $43.3 million from $41.3 million in the first quarter. After adjusting for charges tied to a Visa conversion ratio change, normalized noninterest income rose $2.2 million, driven primarily by wealth management performance, including market gains, higher annuity demand and other advisory fees. Polk said wealth-management fee growth in the third quarter was expected to be supported roughly equally by market performance and production, excluding changes in market conditions. He cited investments in Bankoh Advisors, its partnership with Cetera, additional product availability and new advisers as factors supporting sales activity. Satenberg forecast normalized noninterest income of about $43 million in the third quarter. Noninterest expense totaled $111.2 million, down from $116.1 million in the first quarter, which had included seasonal payroll taxes, benefit expenses and nonrecurring compensation and severance charges. Third-quarter normalized noninterest expense is expected to be about $112.5 million. The company maintained capital ratios above well-capitalized regulatory thresholds, reporting a Tier 1 capital ratio of 14.5% and total risk-based capital ratio of 15.5%. Bank of Hawaii repurchased $17 million of common shares during the second quarter at an average price of about $78 per share and plans to repurchase an additional $20 million in the third quarter. Management also expects another $20 million of repurchases in the fourth quarter before reassessing the program for 2027. The board declared a common dividend of $0.70 per share, payable in the third quarter. Polk said Hawaii’s economy remains resilient, supported by low unemployment, visitor spending, construction activity and military investment. Hawaii’s Department of Business, Economic Development & Tourism projects 1.6% real economic growth in 2026, though the bank said it continues to monitor inflation, energy costs, consumer confidence, travel demand and geopolitical and fiscal developments. Bank of Hawaii (NYSE: BOH) is a regional commercial bank headquartered in Honolulu, Hawaii, with roots tracing back to its founding in 1897 by Charles Montague Cooke and Peter Cushman Jones. As one of the oldest financial institutions in the U.S. West Coast region, the bank has built a reputation for stability and community focus. It operates as the principal subsidiary of Bank of Hawaii Corporation, a publicly traded company on the New York Stock Exchange. The bank offers a comprehensive suite of personal and business banking products and services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Bank of Hawaii Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.