Bank of Hawai‘i Corporation Reports Q2 with EPS Beat

Bank of Hawai‘i Corporation (NYSE: BOH) has released its financial results for the second quarter of 2025, presenting a strong performance that surpassed market expectations. This article delves into the company’s quarterly performance and the guidance it has provided for the future.

BOH Reports $129.7 Million in Q2 Net Interest Income, Up 12.9% y/y

Bank of Hawai‘i Corporation reported diluted earnings per share (EPS) of $1.06 for the second quarter of 2025, surpassing the market’s expectation of $1.04. The company also exceeded its revenue expectation, achieving $169.08 million. This performance marks an improvement from both the previous quarter and the same period last year, where EPS stood at $0.97 and $0.81, respectively. The company’s net income reached $47.6 million, reflecting an 8.3% increase from the prior quarter and a 39.8% rise from the same period in 2024. This growth was driven by a consistent expansion in net interest income and margin, as well as disciplined expense management.

Net interest income for the quarter was $129.7 million, a 3.1% increase from the previous quarter and a 12.9% increase from the same period last year. The net interest margin stood at 2.39%, up from 2.32% in the prior quarter and 2.15% a year ago. The improvement in net interest income was primarily due to higher earning asset yields and a favorable shift in deposit mix.

Noninterest income also saw a modest increase, reaching $44.8 million, up 1.7% from the linked quarter and 6.4% from a year ago. This growth was partially offset by a decrease in customer derivative activity and mortgage banking income.

The company’s asset quality remained strong, with a provision for credit losses at $3.3 million, unchanged from the previous quarter but up from $2.4 million a year ago. Total non-performing assets were $17.9 million, slightly higher than the previous quarter’s $17.5 million and up from $15.2 million a year ago. Despite these increases, the ratio of non-performing assets to total loans and leases remained stable, indicating effective risk management.

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BOH Focused on Maintaining Stability and Growth

Looking ahead, Bank of Hawai‘i Corporation has provided guidance that reflects its strategic focus on maintaining financial stability and growth. The company announced a quarterly cash dividend of $0.70 per common share, consistent with the previous quarter, signaling confidence in its ongoing financial performance. Furthermore, the Board of Directors declared dividends for its preferred stock series, with payments scheduled for August and September 2025.

The company’s capital levels remain robust, with a Tier 1 Capital Ratio of 14.17% as of June 30, 2025, up from 13.93% in the previous quarter. This increase was supported by retained earnings growth and a decrease in risk-weighted assets. Bank of Hawai‘i’s Tier 1 Leverage Ratio also improved, reaching 8.46% from 8.36% in the prior quarter, highlighting a strong capital position to support future growth initiatives.

Bank of Hawai‘i Corporation continues to focus on managing its balance sheet effectively, with total assets at $23.7 billion as of June 30, 2025. The company has seen a slight decrease in assets from the previous quarter, primarily due to reductions in cash and cash equivalents and loans.

However, these were partially offset by an increase in investment securities. The company’s strategic approach to asset management and capital allocation positions it well for sustained growth and resilience in the future.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.