Key Highlights

  • Bank of Hawaii (NYSE:BOH) reported third-quarter 2026 diluted EPS of USD 1.49 on October 26, 2026, against USD 1.47 in the second quarter and USD 1.20 a year earlier, slightly below consensus of USD 1.51.
  • Net interest margin rose 4 basis points to 2.82%, the tenth consecutive quarter of expansion, and net interest income rose 1.6% from the second quarter to USD 156.1 million.
  • Non-performing assets rose USD 31.9 million to USD 43.4 million, or 0.30% of loans, mainly from one commercial mortgage placed on non-accrual for borrower-specific reasons.
  • The board raised the repurchase authorization by USD 200 million to USD 268.7 million after the company bought back USD 20.2 million of stock in the quarter.

Earnings and Margin

Bank of Hawaii reported net income of USD 64.3 million for the quarter, up 0.7% from USD 63.8 million in the second quarter and up from USD 53.3 million a year earlier. Diluted EPS of USD 1.49 was up about 24% from USD 1.20, simple arithmetic on two reported figures. Net interest margin was 2.82% against 2.46% a year earlier. CEO Jim Polk called it a quarter of solid performance supported by continued expense discipline and attributed the margin gain to asset repricing and deposit repricing. The bank also tied results to deposit repricing actions across the quarter. Noninterest expense was USD 112.3 million, flat on USD 112.4 million a year earlier, while noninterest income fell to USD 42.7 million from USD 46.0 million.

Credit, Deposits and Capital

Loans and leases were USD 14.4 billion, up 2.1% since December 31, 2025, and deposits were USD 20.5 billion, down 3.3% over the same period because of runoff in public funds and lower commercial balances. The provision was USD 2.8 million, net charge-offs were USD 3.3 million, or 9 basis points annualized, and the allowance was USD 146.2 million, or 1.02% of loans. Management said the jump in non-performing assets from one commercial mortgage does not signal broader deterioration. The company repurchased 256 thousand shares for USD 20.2 million, with USD 68.7 million of the old authority left at quarter end, and declared a dividend of USD 0.70 per share payable December 14, 2026 to holders of record on November 30, 2026.

Risks and What to Watch

The margin of 2.82% is still low compared with many regional peers, and it depends on deposit costs staying contained while deposits fall. Shrinking deposits and a rise in non-performing assets are the two soft spots in an otherwise steady report. Noninterest income fell, so fee growth is not helping. Investors in Bank of Hawaii (NYSE:BOH) should watch deposit trends, whether the commercial mortgage resolves without a loss, and how fast the larger buyback authorization is used. A margin that keeps widening would support earnings, but the pace of expansion was only 4 basis points this quarter, slower than the year-over-year gain of 36 basis points.

Where Things Stand

The answer is that Bank of Hawaii stretched its margin for a tenth straight quarter because assets and deposits keep repricing, but the 4 basis point gain was small and EPS of USD 1.49 slightly missed consensus of USD 1.51. Credit is sound apart from one non-accrual mortgage, and the USD 200 million buyback increase signals confidence. Bank of Hawaii (NYSE:BOH) faces falling deposits and thin fee growth. The next catalyst is the December 14, 2026 dividend and deposit trends. This is not investment advice.