Bank of Hawaii (BOH) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $44.0 million, up 21% year-over-year and 12.3% from the previous quarter; diluted EPS was $0.97, up from $0.87 in Q1 2024.

• Return on average common equity reached 11.80%, up from 11.20% a year ago.

• Net interest margin expanded to 2.32%, marking the fourth consecutive quarterly increase.

• Credit quality remained strong, with net charge-offs at 0.13% and non-performing assets at 0.12%.

• The company maintained strong capital and liquidity positions, with regulatory capital ratios well above required thresholds.

Financial highlights

• Net interest income was $125.8 million, up 10% year-over-year and 4.7% sequentially.

• Noninterest income was $44.1 million, up 4% year-over-year; noninterest expense was $110.5 million, up 4.3% year-over-year.

• Total deposits grew 1.8% year-over-year to $21.0 billion; loans and leases up 1.9% to $14.1 billion.

• Allowance for credit losses on loans and leases was $147.7 million (1.05% of loans/leases), down slightly from year-end.

• Board declared a $0.70 per share dividend for Q2 2025; no common stock repurchases in Q1 2025, with $126 million buyback authority remaining.

Outlook and guidance

• Management expects stable economic conditions in Hawai'i, with ongoing construction activity and a recovering Maui economy.

• Margin target of 2.50% by year-end remains attainable, contingent on deposit management and potential rate cuts.

• Core expenses projected to rise 2-3% from 2024, with initiatives expected to lower costs in the second half.

• Loan growth guidance remains low single digits, with a solid commercial pipeline and increased consumer applications.

• Forward-looking statements caution about risks and uncertainties impacting future results.