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Bank of Hawaii (BOH) Down 1.7% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Bank of Hawaii (BOH - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Bank of Hawaii due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Bank of Hawaii Q1 Earnings Miss on Lower Fee Income, Expenses Rise Y/Y
Bank of Hawaii 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.
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, along with increased loan balances and lower provisions, offered some support.
The company’s net income (GAAP basis) came in at $60.9 million, up 55.6% year over year.
Quarterly Revenues & Expenses Rise
The company’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%.
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.
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.
The efficiency ratio was 60.35%, down from 65.03% in the year-ago period. A fall in the efficiency ratio reflects increased profitability.
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.
Total deposits decreased 1% on a sequential basis to $21 billion.
Credit Quality Improves
As of March 31, 2026, non-performing assets were $12.1 million, which declined 31% year over year.
Net loan and lease charge-offs were $1.1 million, down $3.3 million from the year-ago quarter.
Provision for credit losses was $1.7 million, down 46% from the year-ago quarter.
The allowance for credit losses declined marginally to $147 million.
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.
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.
Outlook
Q2 2026
NIM is expected to continue expanding as deposit costs reprice lower and fixed asset repricing remains a steady contributor.
Noninterest income is expected to be approximately $42 million.
Normalized noninterest expense is expected to be approximately $112 million.
2026
Loans are expected to grow in the mid-single-digit range.
NIM is projected to approach 2.90% by the end of 2026, driven by fixed asset repricing, improving deposit mix and benefits from prior rate cuts.
Management is now expecting full-year overhead expense growth of 2.5% to 3.0% from the normalized 2025 base, compared with its previous 3.0% to 3.5% outlook.
The effective tax rate is anticipated to be close to 23%.
Share repurchases are expected to increase to $15–$20 million per quarter, subject to growth conditions and capital levels.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM Scores
Currently, Bank of Hawaii has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Bank of Hawaii has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Bank of Hawaii (BOH) Down 1.7% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Bank of Hawaii (BOH - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Bank of Hawaii due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Bank of Hawaii Q1 Earnings Miss on Lower Fee Income, Expenses Rise Y/Y
Bank of Hawaii 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.
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, along with increased loan balances and lower provisions, offered some support.
The company’s net income (GAAP basis) came in at $60.9 million, up 55.6% year over year.
Quarterly Revenues & Expenses Rise
The company’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%.
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.
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.
The efficiency ratio was 60.35%, down from 65.03% in the year-ago period. A fall in the efficiency ratio reflects increased profitability.
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.
Total deposits decreased 1% on a sequential basis to $21 billion.
Credit Quality Improves
As of March 31, 2026, non-performing assets were $12.1 million, which declined 31% year over year.
Net loan and lease charge-offs were $1.1 million, down $3.3 million from the year-ago quarter.
Provision for credit losses was $1.7 million, down 46% from the year-ago quarter.
The allowance for credit losses declined marginally to $147 million.
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.
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.
Outlook
Q2 2026
NIM is expected to continue expanding as deposit costs reprice lower and fixed asset repricing remains a steady contributor.
Noninterest income is expected to be approximately $42 million.
Normalized noninterest expense is expected to be approximately $112 million.
2026
Loans are expected to grow in the mid-single-digit range.
NIM is projected to approach 2.90% by the end of 2026, driven by fixed asset repricing, improving deposit mix and benefits from prior rate cuts.
Management is now expecting full-year overhead expense growth of 2.5% to 3.0% from the normalized 2025 base, compared with its previous 3.0% to 3.5% outlook.
The effective tax rate is anticipated to be close to 23%.
Share repurchases are expected to increase to $15–$20 million per quarter, subject to growth conditions and capital levels.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM Scores
Currently, Bank of Hawaii has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Bank of Hawaii has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.