Bank of Hawaii (BOH) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $53.3 million, up 32% year-over-year, with diluted EPS of $1.20, a 29% increase, and return on average common equity at 13.59%.

• Net interest margin expanded for the sixth consecutive quarter to 2.46%, with net interest income reaching $136.7 million, up 16% year-over-year.

• Credit quality remains strong, with net charge-offs at 0.07% annualized, non-performing assets at 0.12%, and allowance for credit losses at 1.06% of loans.

• Wealth management initiatives and talent additions are underway, including integration with Cetera and a new broker-dealer platform.

• Total assets reached $24.0 billion, and average deposits grew 7% annualized.

Financial highlights

• Net interest income was $136.7 million, up from $129.7 million sequentially and $117.6 million year-over-year; net interest margin increased by 7 bps to 2.46%.

• Noninterest income was $46.0 million, with normalized growth after adjusting for one-time items; noninterest expense was $112.4 million, including $2.1 million in severance charges.

• Provision for credit losses was $2.5 million, down from $3.3 million in the prior quarter.

• Total deposits grew to $21.1 billion, up 1.4% sequentially; loans and leases ended at $14.0 billion.

• Allowance for credit losses on loans and leases was $148.8 million (1.06% of loans/leases), flat from year-end 2024.

Outlook and guidance

• NIM expected to expand further, with a base case of 25 basis points improvement per year; ongoing NII expansion supported by balance sheet remix.

• Loan growth outlook remains in the low single digits, with improving pipelines.

• Normalized noninterest income for Q4 expected between $42–$43 million; noninterest expense around $109 million.

• 2026 expense growth projected in the 3%+ range, with Q1 slightly higher due to seasonal payroll.

• Expect a one-time gain of ~$18 million from the sale of merchant services and a $16–17 million loss on AFS securities repositioning in Q4 2025.