Bank of Hawaii Corp NYSE:BOH Price, Chart, News & Insight

NYSE:BOH

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.

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Global Finance News 10-26-26

Bank of Hawai‘i Stock Falls 4% Despite Strong Earnings as Investors Focus on Deposit Trends

Bank of Hawai‘i (NYSE: BOH) shares fell about 4% on Monday despite reporting stronger second-quarter earnings, as investors looked beyond headline profit growth and focused on softer deposit trends and higher credit loss provisions.

The regional bank reported net income of $63.8 million, up 11.1% from the previous quarter, while diluted earnings per share increased to $1.47 from $1.30. Net interest income rose 1.7% to $153.6 million, supported by continued loan repricing, and net interest margin expanded to 2.78%, marking the ninth consecutive quarter of margin improvement.

Management highlighted steady balance sheet execution, with total loans and leases increasing 1.5% from year-end, driven by growth in commercial lending and residential mortgages. Asset quality also remained healthy, with non-performing assets declining to just 0.08% of total loans and leases.

However, investors appeared to focus on areas of caution within the report. Total deposits declined 1.4% from year-end, while average deposits also edged lower during the quarter. The company also recorded a higher provision for credit losses as net loan charge-offs increased compared with the previous quarter, even though overall credit metrics remained strong.

Bank of Hawai‘i maintained a solid capital position, repurchased $17.0 million of common stock during the quarter, and announced another quarterly common dividend of $0.70 per share. Management said the company remains well capitalized and continues to benefit from disciplined balance sheet management.

The stock's decline suggests investors were looking for stronger balance sheet growth and deposit momentum following the recent rally in regional bank shares. While the earnings report demonstrated improving profitability and expanding net interest margins, the softer funding trends and higher credit provisioning appeared to outweigh the otherwise solid quarterly performance.

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European Investor 07-27-26

Bank of Hawai‘i Corporation reported strong fourth-quarter and full-year 2025 results, driven by continued expansion in net interest income and margin improvement. For the fourth quarter of 2025, the company posted diluted earnings per share of $1.39 and net income of $60.9 million, representing solid growth both quarter-over-quarter and year-over-year. Net interest margin increased to 2.61%, supported primarily by lower deposit costs, while the average quarterly cost of total deposits declined to 1.43%. Share repurchases were also resumed during the quarter.

For the full year 2025, Bank of Hawai‘i delivered diluted earnings per share of $4.63 and net income of $205.9 million, up more than 37% compared with 2024. Return on average common equity rose to 13.29%, reflecting improved profitability and disciplined expense management. Management highlighted consistent growth in net interest income for the seventh consecutive quarter, stable loan and deposit growth, and continued strong credit quality as key contributors to performance.

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WS Investor 01-26-26

Bank of Hawai‘i Reports Strong Q1 2025 Results with Higher Earnings and Dividend

Bank of Hawai‘i Corporation (NYSE: BOH) posted first quarter 2025 net income of $44.0 million, or $0.97 per diluted common share, up from $0.85 in the prior quarter and $0.87 a year ago. The return on average common equity was 11.80%, improving from both the fourth quarter of 2024 and the year-ago period.

Net interest income rose to $125.8 million, a 4.7% increase from the prior quarter and 10.4% year-over-year, driven by lower interest-bearing deposit costs and stronger earning asset yields. Net interest margin improved to 2.32%. Noninterest income was $44.1 million, up 2.3% from the previous quarter, while noninterest expense rose 2.3% to $110.5 million.

Asset quality remained strong. Non-performing assets totaled $17.5 million, 0.12% of loans and leases, and net loan charge-offs were $4.4 million. The allowance for credit losses stood at $147.7 million, or 1.05% of total loans and leases.

Total assets reached $23.9 billion. Loans increased 0.3% to $14.1 billion, while deposits grew 1.8% to $21.0 billion. Commercial loans rose 1.2%, while consumer loans declined slightly.

The Tier 1 Capital Ratio was 13.93%, and the Tier 1 Leverage Ratio was 8.36%. No share repurchases were made during the quarter, with $126.0 million remaining under the buyback program.

The board declared a $0.70 quarterly cash dividend on common shares, payable June 13, 2025. Dividends were also declared for the company’s Series A and Series B preferred shares.

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WS Investor 04-22-25

Bank of Hawaii Corporation filed a Form 8-K on February 27, 2025, reporting compensation decisions for its Named Executive Officers (NEOs). The Human Resources and Compensation Committee approved performance-based bonus awards and salary adjustments for 2025. Chairman and CEO Peter S. Ho received a $1,500,000 bonus and a base salary of $925,000. Other executives, including the CFO and Chief Risk Officer, also received bonuses and salary adjustments.

The company follows a pay-for-performance approach, where executive compensation is tied to pre-established performance goals under the 2024 Stock and Incentive Plan. Restricted Stock Unit (RSU) grants were awarded to certain executives, with Peter S. Ho receiving 33,581 RSUs, and other executives receiving smaller grants.

The filing also included exhibits related to the stock and incentive plan.

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The Investor 03-05-25

The Bank of Hawaii Corporation’s 2024 Stock and Incentive Plan includes a Restricted Stock Unit (RSU) Grant Agreement for eligible executives. Under this agreement, RSUs are awarded with a vesting schedule that requires continuous employment for full vesting. The units are subject to forfeiture if employment is terminated, except in cases of death, disability, or a qualifying termination following a change in control.

The agreement specifies that RSUs will be settled in company shares after vesting, with an option for deferral under the Bank of Hawaii Corporation Executive Base Salary Deferral Plan. During the restriction period, RSUs cannot be transferred or pledged. Dividend equivalents will be credited and paid in cash until the RSUs are settled.

The agreement ensures compliance with tax regulations, including Section 409A of the Internal Revenue Code. Any changes to the agreement due to legal requirements may be made by the company without participant consent, but material adverse changes require approval. The agreement also includes provisions for data privacy and administrative processing.

By accepting the grant, the participant agrees to all terms outlined in the agreement and the broader incentive plan. The document was executed by Patrick M. McGuirk, Vice Chair of the Bank of Hawaii Corporation.

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European Investor 01-31-25

Bank of Hawai‘i Corporation reported strong financial results for 2024, with diluted earnings per share of $3.46 for the year and $0.85 for the fourth quarter. Net income for the year was $150 million, a 12.4% decline from 2023, while fourth-quarter net income reached $39.2 million, reflecting a 28.8% increase year-over-year. Total assets were $23.6 billion at year-end, and total deposits stood at $20.6 billion, with noninterest-bearing deposits comprising 26.3% of the total. The company’s net interest margin for the fourth quarter increased to 2.19%, supported by higher earning asset yields and controlled deposit costs.

Asset quality remained strong, with non-performing assets at $19.3 million, representing 0.14% of total loans and leases. Provision for credit losses for the fourth quarter was $3.8 million, reflecting an increase from prior periods. The allowance for credit losses was $148.5 million, maintaining a ratio of 1.06% to total loans and leases. Meanwhile, total loans and leases grew modestly to $14.1 billion, with a notable 6.0% year-over-year increase in commercial loans, though consumer loans declined.

The company declared a quarterly dividend of $0.70 per common share, payable in March 2025. Capital ratios remained robust, with the Tier 1 Capital Ratio at 13.95%. No share repurchases occurred in the fourth quarter, leaving $126 million in buyback authority. Preferred stock dividends were also announced, reinforcing the company’s commitment to returning value to shareholders while maintaining strong capital and credit quality metrics.

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The Investor 01-27-25

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