Bank of Hawaii (BOH) Q4 2025 earnings summary

Executive summary

• Diluted EPS for Q4 2025 was $1.39, up 63% year-over-year and 16% sequentially, with net income of $60.9M, driven by NIM expansion and disciplined cost management.

• Return on average common equity improved to 15.03% in Q4 2025.

• Share repurchases resumed in Q4 2025, with $5M in buybacks and $121M remaining under the current plan.

• Loans and deposits grew modestly, with noninterest-bearing demand deposits up 6.6% sequentially.

• Market share advanced 40 bps in 2025, maintaining deposit market leadership in Hawaii.

Financial highlights

• Net interest margin rose to 2.61% in Q4 2025, up 15 bps sequentially and 42 bps year-over-year, marking the seventh consecutive quarter of expansion.

• Net interest income for Q4 2025 was $145.4M, up 6.4% from Q3 and 21% year-over-year.

• Noninterest income was $44.3M, including an $18.1M gain from merchant services sale and a $16.8M investment loss.

• Noninterest expense was $109.5M, down from $112.4M sequentially, with one-time items including a $1.1M donation and a $1.4M FDIC assessment reduction.

• Total revenue reached $189.6M, a 7% increase from Q3 2025 and 26.4% year-over-year.

Outlook and guidance

• NIM expected to approach 2.90% by end of 2026, with continued benefit from fixed asset repricing and deposit remix.

• Loan growth anticipated to move into mid-single digits in 2026, after a flat 2025.

• First quarter 2026 normalized noninterest income forecasted at $42–43M; noninterest expense expected to be about $113M, with full-year expense growth of 3–3.5% from a $440–441M base.

• Tax rate projected to rise to 23% in 2026 due to discrete items.

• Stock repurchases expected to increase to $15–20M per quarter, with $121M remaining under the current plan.