Bank of Hawaii Q3 2026 EPS $1.49, Margin Hits 2.82%

Bank of Hawaii Corporation (NYSE: BOH) reported diluted earnings per common share of $1.49 for the third quarter of 2026, a slight increase from $1.47 in the prior quarter. The Honolulu-based lender posted net income of $64.3 million, up 0.7% from the linked quarter, while its net interest margin expanded to 2.82%, marking the tenth consecutive quarter of improvement.

Jim Polk, President and CEO, attributed the results to continued expense discipline and the ongoing benefit of asset repricing. He noted that loan balances increased from the prior quarter and credit quality remained healthy, with the company maintaining a focus on enhancing earnings while preserving financial strength.

Net interest income rose 1.6% to $156.1 million, driven primarily by a 5-basis point increase in earning asset yield as fixed-rate assets rolled off and were reinvested at higher rates. This gain was partially offset by a shift from noninterest-bearing deposits to higher-yielding interest-bearing accounts. The average yield on total earning assets reached 4.13%, while the average yield on loans and leases climbed to 4.82%. Loan originations during the quarter carried a weighted average rate of 5.89%.

Noninterest income declined 1.4% to $42.7 million, largely due to lower gains on leased asset sales and seasonally higher trust-related tax services revenue in the prior period. Adjusted for specific Visa Class B share conversion ratio charges, the decrease was 0.9%. Noninterest expense increased 1.0% to $112.3 million, driven by higher net equipment and occupancy costs.

Asset quality metrics showed minor fluctuations. Total non-performing assets stood at $43.4 million at September 30, 2026, up $31.9 million from June 30, 2026. The increase was primarily due to a single commercial mortgage moving to non-accrual status due to borrower-specific circumstances, which the company stated does not represent broader credit deterioration. Net loan and lease charge-offs were $3.3 million for the quarter.

On the balance sheet, total assets decreased 1.5% from December 31, 2025, to $23.8 billion, reflecting decreases in cash and held-to-maturity securities. Total loans and leases grew 2.1% to $14.4 billion, with commercial loans up 3.8% and consumer loans up 0.7%. Total deposits fell 3.3% to $20.5 billion, driven by a strategic runoff of public funds and lower commercial deposit balances.

The company’s Tier 1 Capital Ratio was 14.41% at September 30, 2026, compared with 14.49% at December 31, 2025. The decrease resulted from an increase in risk-weighted assets and share repurchases, which totaled $20.2 million during the quarter as part of a program increased by $200 million.