Global Finance News
26 Oct 2026, 18:59
Bank of Hawai‘i Slips 0.3% as Higher Nonperforming Assets Offset Margin Expansion
Bank of Hawai‘i (NYSE: BOH) shares fell about 0.3% after the company reported modest sequential earnings growth and another quarter of net interest margin expansion, but also a sharp increase in nonperforming assets.
Third-quarter net income was $64.3 million, up 0.7% from the prior quarter, while diluted EPS increased to $1.49 from $1.47. Net interest income rose 1.6% sequentially to $156.1 million, and net interest margin improved by 4 basis points to 2.82%, marking the tenth consecutive quarterly increase.
Loan growth remained positive, with total loans and leases reaching $14.4 billion, up 2.1% from year-end 2025. Commercial loans increased 3.8%, while the bank continued to benefit from fixed-rate asset repricing and new loan production at higher rates.
The main area of concern was asset quality. Nonperforming assets climbed to $43.4 million from $11.5 million in the prior quarter, pushing the nonperforming asset ratio to 0.30% from 0.08%. Management attributed the increase primarily to a single commercial mortgage placed on non-accrual status and said it did not indicate broader portfolio deterioration.
Capital remained strong, and the company repurchased $20.2 million of shares during the quarter. Its board subsequently increased the share repurchase authorization by $200 million to $268.7 million and maintained the quarterly common dividend at $0.70 per share.
The slight 0.3% decline appears to reflect a mixed reaction: improving margins, loan growth and stronger capital returns were balanced by the sizable increase in nonperforming assets and continued deposit pressure.
Bank of Hawai‘i (NYSE: BOH) shares fell about 0.3% after the company reported modest sequential earnings growth and another quarter of net interest margin expansion, but also a sharp increase in nonperforming assets.
Third-quarter net income was $64.3 million, up 0.7% from the prior quarter, while diluted EPS increased to $1.49 from $1.47. Net interest income rose 1.6% sequentially to $156.1 million, and net interest margin improved by 4 basis points to 2.82%, marking the tenth consecutive quarterly increase.
Loan growth remained positive, with total loans and leases reaching $14.4 billion, up 2.1% from year-end 2025. Commercial loans increased 3.8%, while the bank continued to benefit from fixed-rate asset repricing and new loan production at higher rates.
The main area of concern was asset quality. Nonperforming assets climbed to $43.4 million from $11.5 million in the prior quarter, pushing the nonperforming asset ratio to 0.30% from 0.08%. Management attributed the increase primarily to a single commercial mortgage placed on non-accrual status and said it did not indicate broader portfolio deterioration.
Capital remained strong, and the company repurchased $20.2 million of shares during the quarter. Its board subsequently increased the share repurchase authorization by $200 million to $268.7 million and maintained the quarterly common dividend at $0.70 per share.
The slight 0.3% decline appears to reflect a mixed reaction: improving margins, loan growth and stronger capital returns were balanced by the sizable increase in nonperforming assets and continued deposit pressure.
