BOH Stock Jumps 6% as Q4 Earnings Beat on Higher NII & Fee Income

Core Insights - Bank of Hawaii Corporation (BOH) shares rose nearly 6.1% after reporting better-than-expected fourth-quarter 2025 earnings per share (EPS) of $1.39, exceeding the Zacks Consensus Estimate of $1.25 and up from 85 cents in the same quarter last year [1][10] Financial Performance - The company's net income (GAAP basis) for Q4 2025 was $60.9 million, reflecting a 55.6% year-over-year increase [2] - For the full year 2025, EPS was $4.63, surpassing the Zacks Consensus Estimate of $4.50 and up from $3.46 in 2024. The net income for the year was $205.9 million, a 37.3% increase year over year [3] - Quarterly revenues increased by 16.2% year over year to $189.6 million, exceeding the Zacks Consensus Estimate by 3.9%. Full-year revenues reached $716.6 million, up 12.1% year over year, also surpassing estimates [4] Income and Expenses - Net interest income (NII) for Q4 was $145.4 million, a 20.9% increase year over year, with net interest margin (NIM) rising 42 basis points to 2.61% [4] - Non-interest income was $44.3 million, up 2.8% year over year, driven by higher trust and asset management income [5] - Non-interest expenses rose 1.5% year over year to $109.5 million, with adjusted expenses increasing 3.9% from the previous year [6] Efficiency and Credit Quality - The efficiency ratio improved to 57.75%, down from 66.12% in the prior year, indicating increased profitability [7] - As of December 31, 2025, non-performing assets decreased by 26.6% year over year to $14.2 million, while net loan and lease charge-offs increased to $4.1 million [11] Capital Ratios and Profitability - The Tier 1 capital ratio improved to 14.49%, up from 13.95% a year earlier, and the total capital ratio rose to 15.54% from 15.00% [13] - Return on average assets was 1.01%, up from 0.66% in the prior year, and return on average shareholders' equity increased to 13.33% from 9.42% [14] Share Repurchase - In the reported quarter, Bank of Hawaii repurchased 76.5 thousand shares at a total cost of $5 million, with remaining buyback authority of $121 million [15] Overall Outlook - The rise in NII and fee income is expected to support top-line growth, alongside a solid capital position and higher loan and deposit balances. However, rising expenses remain a concern for overall performance [16]