Bank of Hawaii’s third quarter was marked by a modest outperformance relative to Wall Street expectations, with management attributing the results to improved net interest margin and disciplined credit practices. CEO Peter Ho highlighted, “Net interest margin improved for the sixth straight quarter,” as deposit growth and prudent asset repricing helped offset some headwinds from deposit mix shifts. The bank’s continued dominance in its core Hawaii market, supported by a diversified and conservatively underwritten loan book, was also emphasized as a key factor in maintaining stable asset quality and driving market share gains.
Is now the time to buy BOH? Find out in our full research report (it’s free for active Edge members).
Bank of Hawaii (BOH) Q3 CY2025 Highlights:
- Revenue: $182.6 million vs analyst estimates of $179.5 million (12.2% year-on-year growth, 1.8% beat)
- Adjusted EPS: $1.20 vs analyst estimates of $1.18 (2.1% beat)
- Adjusted Operating Income: $74.22 million vs analyst estimates of $72.59 million (40.6% margin, 2.3% beat)
- Market Capitalization: $2.58 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Bank of Hawaii’s Q3 Earnings Call
- Matthew Clark (Piper Sandler) asked about the timeline for reaching a 3% net interest margin. CEO Peter Ho indicated that 2.50% is a reasonable target for Q4, with ongoing annual improvement possible if trends hold.
- Matthew Clark (Piper Sandler) inquired about loan growth expectations. Ho responded that low single-digit growth remains the outlook, with potential upside if economic clarity improves.
- Kelly Motta (KBW) questioned progress and plans for the wealth management platform. Ho described positive developments with partner Saterra and highlighted ongoing talent additions to drive growth.
- Kelly Motta (KBW) asked about the sources of market share gains in Hawaii. Ho said growth has been balanced across consumer, commercial, and municipal segments, driven by consistent strategic execution.
- Jared Shaw (Barclays) asked about the reduction in Central Business District office exposure. Ho explained the bank exited a non-core office credit opportunistically as part of ongoing portfolio management.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will monitor (1) net interest margin progression as deposit and asset repricing strategies mature, (2) the scaling and client acquisition of the Banco Advisors wealth platform, and (3) disciplined loan growth amid evolving economic conditions. Execution on expense control and the impact of the merchant services divestiture will also be important signposts.
Bank of Hawaii currently trades at $64.93, up from $63.90 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).
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