Key Takeaways BOH stock rose nearly 6% after Q4 2025 EPS of $1.39 beat estimates and exceeded the year-ago quarter.Bank of Hawaii benefited from higher net interest income, a wider NIM and growth in fee-based income.BOH reported stable loans and deposits, lower credit provisions and a better efficiency ratio. Shares of Bank of Hawaii Corporation (BOH) gained nearly 6.1% in yesterday’s trading session after reporting better-than-expected results. The company posted fourth-quarter 2025 earnings per share (EPS ...

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Management said loans and deposits grew modestly during the quarter, with notable strength in non-interest-bearing demand deposits. Ho said non-interest-bearing demand deposits increased 6.6% on a linked-quarter basis. On funding costs, Ho noted interest-bearing deposit costs improved by 20 basis points , while total cost of funds improved by 16 basis points .In the Q&A, management clarified that the “near 290” view refers to an end-of-period level. CFO Brad Satenberg added that the bank finished the year a ...

Today, we continue our Q4 regional bank coverage with a real specialized name in Bank of Hawaii Corporation ( BOH ). As the name implies, it serves businesses and consumers in the Hawaiian Islands. What we knowThe Pioneer Of Seeking Alpha's BAD BEAT Investing, Quad 7 Capital is a team of 7 analysts with a wide range of experience sharing investment opportunities for nearly 12 years. They are best known for their February 2020 call to sell everything & go short, & have been on average 95% long 5% short since ...

Financial Data and Key Metrics Changes - Fully diluted earnings per share was $1.39, 63% higher year-over-year and 16% higher quarter-over-quarter [3] - Net interest margin improved for the seventh consecutive quarter, up 15 basis points to 2.61% [3] - Return on common equity improved to 15% [3] - Net income for the quarter was $60.9 million, an increase of $7.6 million compared to the linked quarter [11] Business Line Data and Key Metrics Changes - Loans and deposits both grew modestly in the quarter, with non-interest-bearing demand deposits growing 6.6% on a linked basis [3] - Consumer loans represent 57% of total loans, approximately $8 billion, with 86% consisting of residential mortgage and home equity loans [7] - Commercial lending portfolio totals $6.1 billion, representing 43% of total loans, with 73% secured by real estate [7] Market Data and Key Metrics Changes - Bank of Hawaii's market share growth continued in 2025, advancing another 40 basis points [4] - The bank is the clear deposit market share leader in Hawaii [4] - Approximately 93% of loans are based in Hawaii, with 4% in the Western Pacific and 3% on the mainland [6] Company Strategy and Development Direction - The company aims to achieve a net interest margin of near 290 by the end of 2026, driven by fixed asset repricing and improving deposit remix [5] - The bank's unique business model leverages its core Hawaii market and dominant brand position to create superior risk-adjusted returns [4] - The company is focused on enhancing its digital service, marketing, and commerce capabilities to maintain its competitive advantage [4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of non-interest-bearing deposits, although they expect growth to moderate from the 6% increase seen in Q4 [24] - The outlook for loan growth in 2026 is projected to be mid-single digits, with expectations for improved pipelines in both consumer and commercial lending [29][54] - Management noted that credit quality remains pristine, with a positive economic outlook for Hawaii supporting a reduction in the allowance for credit losses [39] Other Important Information - Noninterest income was $44.3 million during the quarter, impacted by a gain on the sale of the merchant services portfolio and a loss from investment portfolio repositioning [15] - The company resumed its stock repurchase program, purchasing approximately $5 million of common shares at an average price of $65 per share [19] - Capital ratios remained above regulatory thresholds, with Tier 1 capital at 14.5% and total risk-based capital at 15.5% [19] Q&A Session Summary Question: Can you provide insight on non-interest-bearing deposit growth? - Management indicated that the 6% growth in non-interest-bearing deposits may not continue at the same rate, attributing some growth to seasonality and balanced contributions from business segments [24] Question: What is the outlook for loan growth? - Management expressed a positive outlook for loan pipelines, expecting mid-single-digit growth in 2026, with contributions from both consumer and commercial sectors [29][54] Question: What is the status of special mention and classified balances? - Special mention at the end of Q4 was $63.4 million, down from the previous year, with total classified at $298.5 million [38] Question: Can you elaborate on margin expectations? - Management confirmed that the margin target of near 290 is based on year-end projections, not just Q4 averages, and highlighted the importance of fixed asset repricing [33] Question: What is the strategy for capital return and buybacks? - Management plans to increase stock repurchases to the $15 million-$20 million range per quarter, contingent on growth remaining stable [67]

Financial Data and Key Metrics Changes - Fully diluted earnings per share was $1.39, 63% higher year-over-year and 16% higher quarter-over-quarter [3] - Net interest margin improved for the seventh consecutive quarter, up 15 basis points to 2.61% [3] - Return on common equity improved to 15% [3] - Net income for the quarter was $60.9 million, an increase of $7.6 million compared to the linked quarter [11] Business Line Data and Key Metrics Changes - Loans and deposits grew modestly in the quarter, with non-interest-bearing demand deposits increasing by 6.6% on a linked basis [3] - Consumer loans represent 57% of total loans, approximately $8 billion, with 86% being residential mortgage and home equity loans [7] - Commercial lending portfolio totals $6.1 billion, representing 43% of total loans, with 73% secured by real estate [7] Market Data and Key Metrics Changes - Bank of Hawaii's market share growth continued in 2025, advancing another 40 basis points [4] - Approximately 93% of loans are based in Hawaii, with 4% in the Western Pacific and 3% on the mainland [6] Company Strategy and Development Direction - The company aims to leverage its unique core Hawaii market and dominant brand position to create superior risk-adjusted returns [4] - The focus remains on improving customer service and understanding market changes to maintain competitive advantages [51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of non-interest-bearing deposits, although growth may not continue at the same rate [24] - The outlook for loan growth in 2026 is expected to be mid-single digits, with a more positive pipeline for both consumer and commercial loans [29][54] Other Important Information - The company reported a provision for credit losses of $2.5 million, unchanged from the linked quarter [17] - Capital ratios remained above regulatory thresholds, with Tier 1 capital at 14.5% and total risk-based capital at 15.5% [19] - The company resumed its stock repurchase program, purchasing approximately $5 million of common shares [19] Q&A Session Summary Question: Non-interest-bearing deposit growth - Management noted a 6% increase in non-interest-bearing deposits, attributing it to a balanced contribution from various business segments, but expects growth to moderate [24] Question: Loan pipeline outlook - Management indicated a generally positive outlook for loan pipelines, with expectations for mid-single-digit growth in 2026 [29][54] Question: Margin update - Management confirmed that the margin target of near 2.90% is based on year-end expectations, not fourth-quarter averages [33] Question: Special mention and classified balances - Special mention balances at the end of the fourth quarter were $63.4 million, down from the previous year, indicating strong credit quality [38] Question: Fee income opportunities - Management highlighted ongoing efforts in wealth management and a strong pipeline for fee income growth, aiming for a 10% increase [75]

Financial Data and Key Metrics Changes - Fully diluted earnings per share was $1.39, a 63% increase year-over-year and a 16% increase from the previous quarter [3] - Net interest margin improved for the seventh consecutive quarter, up 15 basis points to 2.61% [3] - Return on common equity improved to 15% [3] - Net income for the quarter was $60.9 million, an increase of $7.6 million from the previous quarter [12] Business Line Data and Key Metrics Changes - Loans and deposits both grew modestly in the quarter, with non-interest-bearing demand deposits growing 6.6% on a linked basis [3] - Consumer loans represent 57% of total loans, approximately $8 billion, with 86% consisting of residential mortgage and home equity loans [8] - Commercial lending portfolio totals $6.1 billion, representing 43% of total loans, with 73% secured by real estate [8] Market Data and Key Metrics Changes - Bank of Hawaii continues to lead in deposit market share in Hawaii, with market share growth advancing another 40 basis points in 2025 [4] - The average quarterly mix shift of deposits was $25 million compared to $340 million in 2024, indicating a shift from non-interest-bearing to higher-cost deposits [13] Company Strategy and Development Direction - The company aims to leverage its unique core Hawaii market and dominant brand position to create superior risk-adjusted returns [4] - The focus remains on improving customer service and expanding market share, with a strong emphasis on both consumer and commercial segments [51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of non-interest-bearing deposits, although they expect growth rates to moderate from the current quarter's 6% [25] - The outlook for loan growth in 2026 is projected to be mid-single digits, with expectations for improved pipelines in both consumer and commercial lending [29][54] Other Important Information - The company reported a provision for credit losses of $2.5 million, unchanged from the linked quarter, resulting in a coverage ratio of 1.04% [19] - Capital ratios remained above regulatory thresholds, with Tier 1 capital at 14.5% and total risk-based capital at 15.5% [20] Q&A Session Summary Question: Non-interest-bearing deposit growth - Management noted a 6% increase in non-interest-bearing deposits, attributing it to a balanced contribution from business segments, but expects growth to moderate [25] Question: Loan pipeline outlook - Management indicated a positive outlook for loan pipelines, with expectations for mid-single-digit growth in 2026 [29][54] Question: Margin update - Management confirmed that the margin target of near 290 is an end-of-year goal, not a fourth-quarter average [33] Question: Special mention and classified balances - Special mention balances at the end of the fourth quarter were $63.4 million, down from the previous year, indicating strong credit quality [39] Question: Fee income opportunities - Management highlighted growth in wealth management fees and a strong pipeline, with expectations for continued growth [75]

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While it has largely tracked the fortunes of the wider regional banking space, Bank of Hawaii Corporation ( BOH ) has nevertheless been a decent performer of late. Shares of the Aloha State's top deposit gathererI like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK names on 'The UK Income I ...

Bank of Hawai'i Corporation fourth quarter 2025 financial report January 26, 2026 disclosure forward-looking statements this presentation, and other statements made by the Company in connection with it, may contain forward-looking statements concerning, among other things, forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. we have not committed to update forward-looking statements to reflect ...