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Bank of Hawaii Q1 Earnings Miss on Lower Fee Income, Expenses Rise Y/Y
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Key Takeaways
BOH reported Q1 EPS of $1.30, missing estimates, as lower fee income and higher expenses hurt results.
Bank of Hawaii's NII rose 20% Y/Y, supported by margin expansion and higher loan balances.
BOH's credit quality improved with lower provisions and NPAs, though deposits declined sequentially.
Bank of Hawaii Corporation (BOH - Free Report) reported first-quarter 2026 earnings per share (EPS) of $1.30, which missed the Zacks Consensus Estimate of $1.33. The bottom line compared favorably with 97 cents in the year-ago quarter.
BOH’s results were affected by an increase in expenses and lower fee income. A decline in deposit balances also acted as a headwind. However, higher net interest income (NII), along with increased loan balances and lower provisions, offered some support.
The company’s net income (GAAP basis) came in at $57.4 million, up 31% year over year.
Bank of Hawaii’s Quarterly Revenues & Expenses Rise
BOH’s quarterly revenues increased 13% year over year to $192.3 million. The top line matched the Zacks Consensus Estimate.
NII was $150.9 million, up 20% year over year. NIM increased 42 basis points to 2.74%. Our estimate for NII and NIM was pegged at $146.3 million and 2.70%, respectively.
Non-interest income came in at $41.3 million, down 6% year over year. The decline was mainly due to lower fees, exchange and other service charges, as well as reduced annuity and insurance fees and mortgage banking income. Our estimate for the metric was pinned at $43.2 million.
Non-interest expenses rose 5% year over year to $116.1 million. The increase was mainly driven by higher salaries and benefits, occupancy and equipment expenses and data processing fees. Our estimate for the metric was pinned at $113.7 million.
The efficiency ratio was 60.35%, down from 65.03% in the year-ago period. A fall in the efficiency ratio reflects increased profitability.
BOH’s Loans Increase, Deposits Decline
As of March 31, 2026, total loans and leases increased nearly 1% from the prior-quarter end to $14.2 billion. Our estimate for total loans and leases was $14.7 billion.
Total deposits decreased 1% on a sequential basis to $21 billion. Our estimate for total deposits was $21.8 billion.
Bank of Hawaii’s Credit Quality Improves
As of March 31, 2026, non-performing assets were $12.1 million, which declined 31% year over year. Our estimate for the metric was $18.5 million.
Net loan and lease charge-offs were $1.1 million, down $3.3 million from the year-ago quarter. Our estimate for the metric was $4.3 million.
Provision for credit losses was $1.7 million, down 46% from the year-ago quarter. Our estimate for the metric was $3.1 million.
The allowance for credit losses declined marginally to $147 million. Our estimate for the metric was $145.5 million.
BOH’s Capital Ratios Improve
As of March 31, 2026, the Tier 1 capital ratio was 14.40%, up from 13.93% as of March 31, 2025. The total capital ratio was 15.44%, which rose from 14.97% in the year-ago period.
The ratio of tangible common equity to risk-weighted assets was 10.28%, which increased from 9.28% at the end of the year-ago quarter.
Bank of Hawaii’s Profitability Ratios Improve
Return on average assets was 0.97% at the end of the first quarter of 2026, which increased from 0.75% in the prior-year quarter. Return on average shareholders' equity was 12.47%, up from 10.65% in the year-ago quarter.
BOH's Share Repurchase Update
In the reported quarter, Bank of Hawaii repurchased 194.1 thousand shares of common stock at a total cost of $15.1 million. As of March 31, 2026, the total remaining buyback authority under the share repurchase program was $105.9 million.
Our View on Bank of Hawaii
A rise in NII and margin expansion will support revenue growth. Strong credit quality, a solid capital position and higher loan balances remain tailwinds. However, declining fee income, lower deposits and rising expenses are likely to weigh on overall performance.
Bank of Hawaii Corporation Price, Consensus and EPS Surprise
Regions Financial Corporation (RF - Free Report) has posted first-quarter 2026 earnings of 62 cents per share, beating the Zacks Consensus Estimate of 61 cents. Also, this compares favorably with earnings of 54 cents per share in the year-ago quarter.
Increases in non-interest income, NII, and higher deposit balances, along with lower provisions, supported RF’s results. However, higher non-interest expenses played spoilsport.
U.S. Bancorp (USB - Free Report) has reported first-quarter 2026 earnings per share of $1.18, topping the Zacks Consensus Estimate by 3.4%. The bottom line increased 14.6% from $1.03 in the year-ago quarter.
USB’s results were supported by higher NII and solid fee revenue growth, while the company has posted positive operating leverage of 440 basis points. However, a rise in provision was concerning.
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Bank of Hawaii Q1 Earnings Miss on Lower Fee Income, Expenses Rise Y/Y
Key Takeaways
Bank of Hawaii Corporation (BOH - Free Report) reported first-quarter 2026 earnings per share (EPS) of $1.30, which missed the Zacks Consensus Estimate of $1.33. The bottom line compared favorably with 97 cents in the year-ago quarter.
BOH’s results were affected by an increase in expenses and lower fee income. A decline in deposit balances also acted as a headwind. However, higher net interest income (NII), along with increased loan balances and lower provisions, offered some support.
The company’s net income (GAAP basis) came in at $57.4 million, up 31% year over year.
Bank of Hawaii’s Quarterly Revenues & Expenses Rise
BOH’s quarterly revenues increased 13% year over year to $192.3 million. The top line matched the Zacks Consensus Estimate.
NII was $150.9 million, up 20% year over year. NIM increased 42 basis points to 2.74%. Our estimate for NII and NIM was pegged at $146.3 million and 2.70%, respectively.
Non-interest income came in at $41.3 million, down 6% year over year. The decline was mainly due to lower fees, exchange and other service charges, as well as reduced annuity and insurance fees and mortgage banking income. Our estimate for the metric was pinned at $43.2 million.
Non-interest expenses rose 5% year over year to $116.1 million. The increase was mainly driven by higher salaries and benefits, occupancy and equipment expenses and data processing fees. Our estimate for the metric was pinned at $113.7 million.
The efficiency ratio was 60.35%, down from 65.03% in the year-ago period. A fall in the efficiency ratio reflects increased profitability.
BOH’s Loans Increase, Deposits Decline
As of March 31, 2026, total loans and leases increased nearly 1% from the prior-quarter end to $14.2 billion. Our estimate for total loans and leases was $14.7 billion.
Total deposits decreased 1% on a sequential basis to $21 billion. Our estimate for total deposits was $21.8 billion.
Bank of Hawaii’s Credit Quality Improves
As of March 31, 2026, non-performing assets were $12.1 million, which declined 31% year over year. Our estimate for the metric was $18.5 million.
Net loan and lease charge-offs were $1.1 million, down $3.3 million from the year-ago quarter. Our estimate for the metric was $4.3 million.
Provision for credit losses was $1.7 million, down 46% from the year-ago quarter. Our estimate for the metric was $3.1 million.
The allowance for credit losses declined marginally to $147 million. Our estimate for the metric was $145.5 million.
BOH’s Capital Ratios Improve
As of March 31, 2026, the Tier 1 capital ratio was 14.40%, up from 13.93% as of March 31, 2025. The total capital ratio was 15.44%, which rose from 14.97% in the year-ago period.
The ratio of tangible common equity to risk-weighted assets was 10.28%, which increased from 9.28% at the end of the year-ago quarter.
Bank of Hawaii’s Profitability Ratios Improve
Return on average assets was 0.97% at the end of the first quarter of 2026, which increased from 0.75% in the prior-year quarter. Return on average shareholders' equity was 12.47%, up from 10.65% in the year-ago quarter.
BOH's Share Repurchase Update
In the reported quarter, Bank of Hawaii repurchased 194.1 thousand shares of common stock at a total cost of $15.1 million. As of March 31, 2026, the total remaining buyback authority under the share repurchase program was $105.9 million.
Our View on Bank of Hawaii
A rise in NII and margin expansion will support revenue growth. Strong credit quality, a solid capital position and higher loan balances remain tailwinds. However, declining fee income, lower deposits and rising expenses are likely to weigh on overall performance.
Bank of Hawaii Corporation Price, Consensus and EPS Surprise
Bank of Hawaii Corporation price-consensus-eps-surprise-chart | Bank of Hawaii Corporation Quote
Currently, BOH carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Banks
Regions Financial Corporation (RF - Free Report) has posted first-quarter 2026 earnings of 62 cents per share, beating the Zacks Consensus Estimate of 61 cents. Also, this compares favorably with earnings of 54 cents per share in the year-ago quarter.
Increases in non-interest income, NII, and higher deposit balances, along with lower provisions, supported RF’s results. However, higher non-interest expenses played spoilsport.
U.S. Bancorp (USB - Free Report) has reported first-quarter 2026 earnings per share of $1.18, topping the Zacks Consensus Estimate by 3.4%. The bottom line increased 14.6% from $1.03 in the year-ago quarter.
USB’s results were supported by higher NII and solid fee revenue growth, while the company has posted positive operating leverage of 440 basis points. However, a rise in provision was concerning.