Bank of Hawaii (NYSE:BOH) Releases Quarterly Earnings Results, Misses Expectations By $0.03 EPS

Key Points

• Quarterly miss: Bank of Hawaii reported Q1 GAAP EPS of $1.30, missing consensus by $0.03, and revenue of $192.3M, creating near‑term headline risk as net income and ROE eased.
• NIM and funding improvements: Net interest margin rose 13 bps (eighth straight quarter) and management targets ~2.9% NIM by year‑end with a longer‑term midpoint near 3.25%–3.50%, while average deposit costs fell 17 bps and many CDs are set to reprice higher soon.
• Strong credit, capital and shareholder returns: Credit metrics remain healthy (annualized net charge‑offs ~3 bps, NPAs 9 bps) with Tier‑1 capital at 14.4%, a declared quarterly dividend of $0.70, and ongoing buybacks (≈$15M repurchased in Q1; $15M–$20M planned in Q2).

Bank of Hawaii (NYSE:BOH - Get Free Report) announced its earnings results on Monday. The bank reported $1.30 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.33 by ($0.03), Briefing.com reports. The company had revenue of $192.32 million for the quarter, compared to the consensus estimate of $193.53 million. Bank of Hawaii had a return on equity of 14.42% and a net margin of 19.30%.During the same period last year, the firm posted $0.97 EPS.

Here are the key takeaways from Bank of Hawaii's conference call:

• NIM expansion remained a key driver — NIM rose 13 bps (eighth consecutive quarter) as the bank remixed $643 million of fixed-rate loans/investments to higher yields and reiterated an objective of approaching 2.9% NIM by year-end with a longer-term midpoint view near 3.25%-3.50%.
• Funding costs improved — average cost of total deposits declined 17 bps to 1.26% with a deposit beta of 36%, and over half of CDs will mature in ~3 months and are expected to reprice mostly into the 2.25%–3.0% range.
• Credit metrics remain very strong — annualized net charge-offs were only 3 bps, NPAs fell to 9 bps, and the ACL coverage ratio stayed at 1.04% (which includes a $3.2M qualitative overlay for Kona storm exposures) while management monitors potential Typhoon Sinlaku effects.
• Capital and shareholder returns intact — Tier 1 capital of 14.4%, the board declared a $0.70 common dividend, the bank repurchased ~$15M of stock in Q1 and plans an additional $15M–$20M in Q2, with ~$106M remaining on the buyback authorization.

Bank of Hawaii Stock Performance

NYSE BOH opened at $80.07 on Tuesday. Bank of Hawaii has a twelve month low of $59.36 and a twelve month high of $82.74. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.37. The stock has a market cap of $3.18 billion, a P/E ratio of 17.33, a PEG ratio of 0.74 and a beta of 0.72. The company's 50-day simple moving average is $76.18 and its 200 day simple moving average is $70.92.

Bank of Hawaii Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Investors of record on Friday, May 29th will be paid a $0.70 dividend. The ex-dividend date of this dividend is Friday, May 29th. This represents a $2.80 dividend on an annualized basis and a yield of 3.5%. Bank of Hawaii's payout ratio is presently 60.61%.

Institutional Investors Weigh In On Bank of Hawaii

A number of institutional investors have recently added to or reduced their stakes in BOH. Royal Bank of Canada lifted its position in shares of Bank of Hawaii by 16.4% during the 1st quarter. Royal Bank of Canada now owns 26,241 shares of the bank's stock worth $1,808,000 after buying an additional 3,689 shares during the period. AQR Capital Management LLC lifted its holdings in shares of Bank of Hawaii by 177.5% during the first quarter. AQR Capital Management LLC now owns 23,818 shares of the bank's stock valued at $1,617,000 after acquiring an additional 15,234 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Bank of Hawaii by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 23,272 shares of the bank's stock valued at $1,605,000 after purchasing an additional 1,027 shares in the last quarter. Intech Investment Management LLC boosted its stake in shares of Bank of Hawaii by 35.8% in the 1st quarter. Intech Investment Management LLC now owns 19,808 shares of the bank's stock valued at $1,366,000 after purchasing an additional 5,227 shares in the last quarter. Finally, Strs Ohio bought a new stake in shares of Bank of Hawaii in the 1st quarter worth about $41,000. 82.18% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Bank of Hawaii

Here are the key news stories impacting Bank of Hawaii this week:

• Positive Sentiment: Declared a quarterly cash dividend of $0.70 per share (annualized yield ~3.5%), supporting income investors and signaling capital return confidence.
• Positive Sentiment: Management is targeting a higher net interest margin (~2.9%) by year-end 2026 and lowered overhead growth guidance to 2.5%–3%, which could improve profitability going forward. Bank of Hawaii targets ~2.9% NIM by year-end 2026 while lowering overhead growth outlook to 2.5%-3%
• Neutral Sentiment: Earnings call commentary described a “resilient core” business and management walked through drivers behind the quarter and outlook — useful context but not a major catalyst by itself. Bank of Hawaii Earnings Call Highlights Resilient Core
• Neutral Sentiment: Full earnings and call transcripts are available for detail on margin drivers, credit trends and expense plans. Bank of Hawaii (BOH) Q1 2026 Earnings Transcript
• Negative Sentiment: Q1 GAAP EPS of $1.30 missed consensus (~$1.34) and revenue of $192.3M slightly missed estimates; net income fell to $57.4M and ROE declined versus the linked quarter — near-term headline risk for the stock. Bank of Hawai‘i Corporation First Quarter 2026 Financial Results
• Negative Sentiment: The EPS and revenue misses (albeit small) may keep pressure on short-term sentiment until confirmation that NIM expansion and expense control offset topline softness. Bank of Hawaii GAAP EPS of $1.30 misses by $0.02, revenue of $192.32M misses by $2.07M

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the stock. DA Davidson upped their price objective on shares of Bank of Hawaii from $73.00 to $81.00 and gave the company a "neutral" rating in a research report on Tuesday, January 27th. Weiss Ratings raised Bank of Hawaii from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 30th. Stephens restated an "overweight" rating on shares of Bank of Hawaii in a research note on Tuesday, January 27th. Piper Sandler cut their price target on Bank of Hawaii from $84.00 to $78.00 and set a "neutral" rating for the company in a report on Thursday, April 2nd. Finally, Keefe, Bruyette & Woods upgraded Bank of Hawaii from a "market perform" rating to an "outperform" rating and raised their price objective for the stock from $75.00 to $91.00 in a research report on Tuesday, January 27th. Three research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $83.80.

About Bank of Hawaii

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.