Bank of Hawaii Corporation

Bank of Hawaii Corp posted diluted earnings per share of $1.47 for the second quarter of 2026, up 13% from the prior quarter, with net income rising 11% to $63.8 million. Net interest margin expanded by 4 basis points to 2.78%, marking the ninth consecutive quarter of expansion, while net interest income increased by $2.6 million to $153.6 million. Total loans grew by $94 million, representing annualized growth of approximately 2.6%, and credit quality remained strong with nonperforming assets declining to 8 basis points and net charge-offs at 10 basis points annualized. The bank returned capital to shareholders through $28 million in common stock dividends and $17 million in share repurchases at an average price of approximately $78 per share. Management expects the net interest margin to reach approximately 2.90% by year-end, supported by a projected September rate hike and fixed asset repricing.

Bank of Hawaii reported second-quarter 2026 GAAP earnings per share of $1.47, beating analyst expectations by $0.02. Revenue came in at $196.9 million, a 12.6% increase year-over-year, but missed estimates by $2.55 million. Net interest income rose 1.7% from the linked quarter to $153.6 million, driven by a 5 basis point increase in earning asset yield as fixed-rate assets repriced higher, partially offset by a deposit mix shift and higher deposit costs. The net interest margin expanded 4 basis points from the prior quarter to 2.78%.

Shares of several regional banks surged in afternoon trading after softer-than-expected inflation data cooled expectations for further Federal Reserve interest rate hikes. Community Bank rose 2.7%, Coastal Financial jumped 4.4%, Byline Bancorp gained 3.3%, Bank of Hawaii added 3.3%, and BancFirst climbed 2.8%. The rally was fueled by a June CPI reading of 3.5% and lower-than-expected producer prices, which bolstered investor confidence that inflationary pressures may be easing. A more stable rate environment is seen as favorable for regional banks, potentially alleviating funding pressures and supporting lending, while strong second-quarter earnings from major financial institutions offered a bullish read-through for smaller lenders. The State Street S&P Regional Banking ETF has been trading near its 2026 highs as the sector navigates a busy earnings season.

Bank of Hawaii Corporation DEP SHS SER B declared a quarterly dividend of $0.50 per share. The forward yield is 7.55%. The dividend is payable on August 3 to shareholders of record on July 17, with the ex-dividend date also on July 17.