Financial Performance - Net income for Q3 2025 was $53.3 million, an increase of $13.0 million, or 32%, compared to Q3 2024[132] - Diluted earnings per share for Q3 2025 was $1.20, an increase of $0.27, or 29%, compared to the same period in 2024[132] - The return on average common equity for Q3 2025 was 13.59%, compared to 11.50% in Q3 2024[134] - Noninterest income for Q3 2025 was $46.0 million, an increase of 2% compared to Q3 2024[134] - Total noninterest income increased by $856 thousand or 1.9% for the three months ended September 30, 2025, compared to the same period in 2024[148] - Commercial Banking net income increased by $4.2 million or 14% in Q3 2025 compared to Q3 2024, driven by a $3.6 million or 7% increase in net interest income[190] - Consumer Banking net income decreased by $3.1 million or 9% in Q3 2025 compared to Q3 2024, primarily due to an increase in noninterest expense and a decrease in net interest income[188] Income and Expenses - Net interest income for Q3 2025 was $136.7 million, an increase of 16% compared to Q3 2024[134] - Total noninterest expense increased by $9.96 million or 9.3% in Q3 2025 compared to Q3 2024, and by $27.89 million or 8.7% for the first nine months of 2025 compared to the same period last year[153] - Total salaries and benefits expense rose by $4.3 million or 7.3% in Q3 2025, and by $13.2 million or 7.6% for the first nine months of 2025, primarily due to increases in base salaries and separation expenses[153] - Provision for income taxes was $14.4 million in Q3 2025, an increase of $2.1 million compared to Q3 2024, with an effective tax rate of 21.3%, down from 23.3% in the prior year[158] Assets and Liabilities - Total assets as of September 30, 2025, were $24.0 billion, an increase of 1.8% from December 31, 2024[134] - Total loans and leases were $14.0 billion as of September 30, 2025, a decrease of 0.4% from December 31, 2024[134] - Total deposits were $21.1 billion as of September 30, 2025, compared to $20.6 billion as of December 31, 2024[137] - The carrying value of the investment securities portfolio was $7.6 billion as of September 30, 2025, up from $7.3 billion at the end of 2024, primarily due to the purchase of $738.1 million in available-for-sale securities[161] - Estimated uninsured deposits increased to $10.09 billion as of September 30, 2025, up from $9.75 billion at the end of 2024[181] Loans and Credit Quality - The allowance for credit losses on loans and leases was $148.8 million as of September 30, 2025, with a ratio of 1.06% to total loans and leases outstanding[134] - Non-performing loans and leases were included in the respective average loan and lease balances, indicating a focus on asset quality management[141] - Loans and leases past due 90 days or more and still accruing interest increased by $3.0 million or 37% to $11.3 million as of September 30, 2025, primarily in the residential mortgage portfolio[201] - The provision for loan losses in Consumer Banking decreased by $0.5 million or 16% in Q3 2025, reflecting lower net charge-offs in the auto loan portfolio[188] Capital and Liquidity - Shareholders' equity increased to $1,748.6 million as of September 30, 2025, up from $1,621.9 million a year earlier, reflecting a growth of 7.8%[140] - The company's total regulatory capital was $2,188,937,000 as of September 30, 2025, compared to $2,133,624,000 at December 31, 2024[235] - The company's Common Equity Tier 1 Capital Ratio improved to 11.98% as of September 30, 2025, compared to 11.59% at December 31, 2024[235] - The company had a remaining borrowing capacity of $7.5 billion with the Federal Reserve Discount Window as of September 30, 2025[227] - The company continues to focus on maintaining a strong liquidity position, with an AFS investment securities portfolio valued at $3.3 billion as of September 30, 2025[231] Market and Investment Performance - The net interest margin improved to 2.46% for the three months ended September 30, 2025, compared to 2.18% for the same period in 2024[140] - The interest rate spread widened to 1.86 for the three months ended September 30, 2025, compared to 1.47 in the same period last year, indicating improved profitability on interest-earning assets[140] - Yields on investment securities portfolio increased by 13 basis points for the three months ended September 30, 2025, primarily due to reinvestment into higher current interest rates[145] Other Notable Items - The Company declared a quarterly cash dividend of $0.70 per share, payable on December 12, 2025[137] - A one-time gain of approximately $18 million is expected from the sale of the economic interests of the merchant services portfolio during the quarter ending December 31, 2025[150] - The company has not repurchased any shares in Q3 2025, maintaining a remaining buyback authority of $126 million[237]

Financial Data and Key Metrics Changes - Fully diluted earnings per share were $1.20, a 29% increase year-over-year and a 13% increase from the previous quarter [3] - Net interest margin improved for the sixth consecutive quarter, rising by seven basis points to 2.46% [3] - Return on common equity improved to 13.6% for the quarter [3] - Average deposits increased by 7% annualized [3] Business Line Data and Key Metrics Changes - Average balance of deposits contributed to the growth in net interest income, which increased by $7 million [15] - Noninterest income rose to $46 million, up from $44.8 million in the previous quarter, driven by higher customer derivative activity and trust earnings [19] - Noninterest expense was $112.4 million, compared to $110.8 million in the prior quarter, influenced by a severance-related charge [20] Market Data and Key Metrics Changes - Bank of Hawaii advanced its number one deposit market share position in Hawaii by 40 basis points as of June 30, 2025 [4] - The loan portfolio is predominantly secured, with 86% of the consumer portfolio consisting of residential mortgage or home equity [9] - The commercial real estate portfolio is well diversified, with no sector representing more than 7% of total loans [10] Company Strategy and Development Direction - The company aims to leverage its dominant market position and brand strength to build wealth market share, particularly in the affluent segment [6][7] - A partnership with Saterra is expected to modernize the broker-dealer platform, enhancing client experience and attracting advisors [7] - The company is focused on improving coordination between commercial and wealth teams to drive cross-marketing opportunities [7] Management's Comments on Operating Environment and Future Outlook - Management anticipates further expansion of net interest margin for several quarters moving forward [5] - The outlook for loan growth remains in the low single digits, with expectations for improvement in the pipeline [32] - Management is optimistic about the potential for capital deployment into share repurchases in the near future [42] Other Important Information - The allowance for credit losses on loans and leases ended the quarter at $148.8 million, with a ratio of 1.06% [14] - The company declared a dividend of $0.70 per common share for the fourth quarter of 2025 [24] Q&A Session Summary Question: Spot rate on total deposits - Total spot rate on deposits is 154 basis points [27] Question: Outlook for achieving 3% NIM - Management believes a 25 basis point increase in NIM per year is reasonable, with potential upside as Fed Funds rates decrease [30][31] Question: Commentary on loan growth outlook - Management expects low single-digit growth to continue, with Q4 anticipated to be better than Q3 [32][33] Question: Changes in wealth management strategy - The partnership with Saterra is progressing well, and the company is focused on enhancing client experience and attracting top advisors [36][38] Question: Capital return and buyback plans - Management is considering share repurchases and is satisfied with current capital levels [41][42] Question: Impact of de-risking on growth - De-risking has not been a headwind for growth, and current portfolios are not expected to impede future growth [46] Question: Expense growth outlook for 2026 - Expected expense growth for 2026 is projected to be in the 3% range [50]

Financial Data and Key Metrics Changes - Fully diluted earnings per share were $1.20, a 29% increase year-over-year and a 13% increase from the previous quarter [3] - Net interest margin improved for the sixth consecutive quarter, rising by seven basis points to 2.46% [3] - Return on common equity improved to 13.6% for the quarter [3] - Average deposits increased by 7% annualized [3] Business Line Data and Key Metrics Changes - The loan portfolio is balanced between consumer and commercial, with consumer loans representing 57% or $7.9 billion of total loans [9] - Commercial loans accounted for $6.1 billion, or 43% of total loans, with 73% secured by real estate [9] - Noninterest income increased to $46 million during the quarter, compared to $44.8 million in the linked quarter [19] Market Data and Key Metrics Changes - Bank of Hawaii advanced its number one deposit market share position in Hawaii by 40 basis points as of June 30, 2025 [4] - The bank's market share has grown by 600 basis points since 2005, outperforming competitors in the Hawaii market [4] Company Strategy and Development Direction - The company aims to leverage its dominant market position and brand strength to build wealth market share, particularly in the affluent segment [6][7] - A partnership with Saterra is expected to modernize the broker-dealer platform, enhancing client experience and attracting top advisors [7] - The bank is focused on improving coordination between commercial and wealth teams to capitalize on cross-marketing opportunities [7] Management's Comments on Operating Environment and Future Outlook - Management anticipates further expansion of net interest margin for several quarters [5] - The outlook for loan growth remains in the low single digits, with expectations for improvement in the pipeline [32] - The company is optimistic about the wealth management segment and plans to continue investing in talent and resources [37] Other Important Information - The allowance for credit losses on loans and leases ended the quarter at $148.8 million, with a ratio of 1.06% [14] - The company recorded a provision for credit losses of $2.5 million, down from $3.3 million in the previous quarter [23] - Capital ratios remained above regulatory thresholds, with tier one capital at 14.3% and total risk-based capital at 15.4% [23] Q&A Session Summary Question: Spot rate on total deposits - The spot rate on total deposits is 154 basis points [27] Question: Outlook for net interest margin (NIM) - Management believes achieving a 3% NIM is possible, with a projected increase of 25 basis points per year [30] Question: Commentary on loan growth outlook - The guidance for loan growth remains in the low single digits, with expectations for improvement in Q4 [32] Question: Changes in wealth management strategy - The partnership with Saterra is progressing well, and the bank is focused on enhancing client experience and attracting top advisors [36] Question: Capital return and buybacks - The company is likely to engage in share repurchases in the current quarter and into next year [41] Question: Credit quality in the office sector - A relationship credit in the office space was exited, contributing to the reduction in Central Business District loans [55]

Financial Data and Key Metrics Changes - Fully diluted earnings per share were $1.2, a 29% increase year-over-year and a 13% increase from the previous quarter [4] - Net interest margin improved for the sixth consecutive quarter, up seven basis points to 2.46% [5] - Return on common equity improved to 13.6% for the quarter [5] - Net income for the quarter was $53.3 million, an increase of $5.7 million compared to the linked quarter [20] Business Line Data and Key Metrics Changes - Average deposits increased by 7% annualized, while end-of-period loans increased modestly [5] - Consumer loans represented over half of total loans at 57%, amounting to $7.9 billion [12] - Commercial loans totaled $6.1 billion, accounting for 43% of total loans [13] Market Data and Key Metrics Changes - Bank of Hawaii advanced its number one deposit market share position in Hawaii by 40 basis points as of June 30, 2025 [6] - The bank's market share has grown by 600 basis points since 2005, outperforming competitors in Hawaii [6] Company Strategy and Development Direction - The company aims to leverage its dominant market position and brand strength to build wealth market share, particularly in the affluent segment [9][10] - A partnership with Saterra is expected to modernize the broker-dealer platform, enhancing client experience and investment products [10] - The bank is focused on improving coordination between commercial and wealth teams to drive cross-marketing opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued expansion of net interest margin and expects to achieve $250 million by year-end [35] - The outlook for loan growth remains in the low single digits, with expectations for improvement in the fourth quarter [38] - Management is optimistic about the potential for further NIM improvement as Fed funds rates decrease [36] Other Important Information - Non-interest income increased to $46 million during the quarter, driven by higher customer derivative activity and elevated loan fees [25] - The company recorded a provision for credit losses of $2.5 million, down from $3.3 million in the linked quarter [28] - Capital ratios remained above regulatory thresholds, with Tier one capital improving to 14.3% [29] Q&A Session Summary Question: Spot rate on total deposits - The total spot rate on deposits is 154 basis points [33] Question: Timeline for achieving 3% NIM - Management believes a 25 basis point pickup in NIM per year is reasonable, with potential upside from Fed funds rate reductions [36][37] Question: Outlook for loan growth - The guidance for loan growth remains in the low single digits, with expectations for improvement in the pipeline [38] Question: Changes on the wealth side - The partnership with Saterra is in production, aiming to enhance client experience and attract top advisors [44][46] Question: Capital return and buybacks - Management is likely to engage in share repurchases in the current quarter and into next year, given the current capital levels [51][52]

Financial Data and Key Metrics Changes - Fully diluted earnings per share increased to $1.20, a 29% rise year-over-year and a 13% increase from the previous quarter [3] - Net interest margin improved for the sixth consecutive quarter, rising by seven basis points to 2.46% [3] - Return on common equity improved to 13.6% for the quarter [3] - Average deposits increased by 7% annualized [3] Business Line Data and Key Metrics Changes - Average balance of deposits contributed to the growth in net interest income, which increased by $7 million [14] - Consumer loans represented over half of total loans at 57%, amounting to $7.9 billion, with a focus on secured lending [8] - Commercial loans totaled $6.1 billion, with 73% secured by real estate [8] Market Data and Key Metrics Changes - Bank of Hawaii advanced its number one deposit market share position in Hawaii by 40 basis points as of June 30, 2025 [4] - The bank's market share has grown by 600 basis points since 2005, outperforming competitors in Hawaii [4] Company Strategy and Development Direction - The company aims to leverage its strong brand and market position to enhance its wealth management segment, which has lagged in growth [5][6] - A partnership with Saterra is expected to modernize the broker-dealer platform, enhancing client experience and attracting advisors [6] - The bank is focused on improving coordination between commercial and wealth teams to capitalize on cross-marketing opportunities [6] Management's Comments on Operating Environment and Future Outlook - Management anticipates further expansion of net interest margin in the coming quarters [5] - The bank's credit quality remains strong, with a diversified portfolio and low delinquency rates [11] - The outlook for loan growth is expected to remain in the low single digits, with improving pipelines [30] Other Important Information - Noninterest income increased to $46 million, driven by higher customer derivative activity and trust earnings [18] - The bank's capital ratios remain above regulatory thresholds, with Tier-One Capital at 14.3% [22] - A dividend of $0.70 per common share was declared for the fourth quarter of 2025 [23] Q&A Session Summary Question: Spot rate on total deposits - The total spot rate on deposits is 154 basis points [25] Question: Outlook for net interest margin (NIM) - Management believes achieving a 3% NIM is possible, with a projected increase of 25 basis points per year [26][28] Question: Loan growth outlook - The guidance for loan growth remains in the low single digits, with expectations for improvement in Q4 [30] Question: Wealth management strategy - The partnership with Saterra is progressing well, and the bank is focused on enhancing client experience and attracting top advisors [32][34] Question: Capital return and buybacks - The bank is considering share repurchases and is satisfied with current capital levels [37][38] Question: Credit quality in the office sector - A reduction in loans in the Central Business District was due to exiting a non-core relationship [44]

Bank of Hawai'i Corporation third quarter 2025 financial report forward-looking statements October 27, 2025 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 later events ...

Financial Performance - Diluted earnings per common share for Q3 2025 were $1.20, up 13.2% from the linked quarter and up 29.0% from the same period last year[2] - Net income for Q3 2025 was $53.3 million, representing a 12.0% increase from the linked quarter and a 32.2% increase year-over-year[2] - Net income for the three months ended September 30, 2025, was $53,345,000, representing a 12.5% increase from $47,637,000 in the previous quarter and a 32.2% increase from $40,358,000 year-over-year[28] - Basic earnings per common share for the three months ended September 30, 2025, was $1.21, compared to $0.94 in the same quarter last year, representing a growth of 29%[34] - Net income available to common shareholders for Q3 2025 was $48.1 million, up from $36.9 million in Q3 2024, representing a year-over-year increase of 30.0%[55] Income and Expenses - Net interest income for Q3 2025 was $136.7 million, an increase of 5.4% from the linked quarter and 16.2% from the same period last year[4] - Noninterest income was $46.0 million in Q3 2025, a 2.6% increase from the linked quarter and a 1.9% increase year-over-year[8] - Noninterest expense was $112.4 million in Q3 2025, up 1.4% from the linked quarter and up 4.9% from the same period last year[9] - Total noninterest income for the three months ended September 30, 2025, was $45,966,000, a slight increase from $44,795,000 in the previous quarter and comparable to $45,110,000 in the same period last year[28] - Total noninterest expense for the three months ended September 30, 2025, was $112,387,000, an increase from $107,092,000 in the same quarter last year, indicating a rise of 5%[34] Assets and Liabilities - Total assets were $24.0 billion at September 30, 2025, an increase of 1.3% from June 30, 2025[15] - Total loans and leases were $14.0 billion at September 30, 2025, a slight increase of 0.1% from the linked quarter[17] - Total deposits were $21.1 billion at September 30, 2025, an increase of 1.4% from June 30, 2025[18] - Total assets as of September 30, 2025, were $24,014,609,000, compared to $23,799,174,000 as of September 30, 2024[54] - Total deposits increased to $21.1 billion in Q3 2025, up from $21.0 billion in Q3 2024, showing a growth of 0.3%[55] Capital and Ratios - The Tier 1 Capital Ratio was 14.34% at September 30, 2025, up from 14.17% at June 30, 2025[20] - The tangible common equity to tangible assets ratio was 5.90% as of September 30, 2025, compared to 5.77% in the previous quarter and 5.48% year-over-year[31] - The return on average assets was 0.88% for the three months ended September 30, 2025, up from 0.81% in the previous quarter and 0.69% in the same period last year[28] - The return on average shareholders' equity increased to 12.10% for the three months ended September 30, 2025, compared to 11.21% in the previous quarter and 9.90% year-over-year[28] Credit Quality - The provision for credit losses decreased to $2,500,000 for the three months ended September 30, 2025, down from $3,250,000 in the previous quarter and $3,000,000 in the same period last year[28] - Non-performing assets totaled $16,864 as of September 30, 2025, a decrease from $17,881 in June 2025, representing a reduction of approximately 5.67%[52] - The ratio of non-performing assets to total loans and leases and foreclosed real estate was 0.12% as of September 30, 2025, unchanged from the previous quarter[52] - The total reserve for credit losses at the end of the period was $150,051,000, compared to $150,325,000 at the end of September 2024[53] Interest Income and Expense - Total interest income for the three months ended September 30, 2025, was $227,708,000, compared to $220,648,000 in the same quarter last year, reflecting a growth of 3%[34] - The total interest expense for the three months ended September 30, 2025, was $91,033,000, a decrease from $103,030,000 in the same quarter last year, reflecting a decline of 12%[34] - Net interest income after provision for credit losses for the nine months ended September 30, 2025, was $383,165,000, up 13% from $339,002,000 for the same period last year[34] - The total change in interest income for the three months ended September 30, 2025, was $9.2 million, with a volume increase of $5.7 million and a rate increase of $3.5 million compared to June 30, 2025[43]

Core Insights - Bank of Hawaii (BOH) reported a revenue of $182.64 million for the quarter ended September 2025, reflecting a year-over-year increase of 12.2% [1] - Earnings per share (EPS) for the quarter was $1.20, up from $0.93 in the same quarter last year, with an EPS surprise of +6.19% compared to the consensus estimate of $1.13 [1] Financial Performance Metrics - Total Non-Performing Assets were reported at $16.86 million, lower than the average estimate of $20.31 million [4] - Total Non-Accrual Loans and Leases stood at $16.74 million, compared to the estimated $19.98 million [4] - Net Interest Margin was reported at 2.5%, matching the average estimate [4] - Average Balance of Total Interest Earning Assets was $22.38 billion, exceeding the average estimate of $21.24 billion [4] - Net charge-offs to average loans were at 0.1%, consistent with the average estimate [4] - Efficiency Ratio was reported at 61.5%, slightly better than the average estimate of 61.8% [4] - Net Interest Income (FTE) was $138.3 million, surpassing the average estimate of $132.58 million [4] - Annuity and Insurance revenue was $1.1 million, below the average estimate of $1.58 million [4] - Bank-Owned Life Insurance revenue was $3.68 million, exceeding the average estimate of $3.28 million [4] - Trust and Asset Management revenue was $12.6 million, slightly above the average estimate of $12.16 million [4] - Mortgage Banking revenue was $0.91 million, below the average estimate of $0.99 million [4] - Overall Net Interest Income was reported at $136.68 million, higher than the average estimate of $130.96 million [4] Stock Performance - Bank of Hawaii shares have returned -2.9% over the past month, contrasting with the Zacks S&P 500 composite's +2.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Bank of Hawai'i Corporation reported diluted earnings per common share of $1.20 for Q3 2025, an increase from $1.06 in the previous quarter and $0.93 in the same period last year [1] - The net income for Q3 2025 was $53.3 million, reflecting a 12.0% increase from the linked quarter and a 32.2% increase from the same period last year [1] - The return on average common equity for Q3 2025 was 13.59%, compared to 12.50% in the previous quarter [1]

Group 1 - Bank of Hawai'i Corporation will release its third quarter 2025 financial results on October 27, 2025, before the market opens [1] - The quarterly conference call will take place at 2:00 p.m. Eastern Time (8:00 a.m. Hawai'i Time) on the same day [1] - The live call will include a slide presentation and will be accessible via the investor relations link on the Company's website [1]