Bank of Hawai‘i Q2 Earnings Jump 31% on 12.9% Net Interest Income Rise Shares Up 1.8%

Bank of Hawai‘i Corporation (NYSE: BOH) reported second-quarter 2025 earnings per share (EPS) of $1.06, exceeding the consensus estimate of $1.04 and reflecting a 31% year-over-year increase from $0.81 [1]. Net income surged to $47.6 million, up 39.8% year-over-year, driven by a 12.9% rise in net interest income to $129.7 million and a net interest margin of 2.39%—a 24-basis-point increase compared to the same period in 2024 [2]. Total revenue reached $169.08 million, surpassing expectations and outpacing the $169.08 million reported in the previous quarter. Noninterest income grew 6.4% year-over-year to $44.8 million, albeit partially offset by declines in mortgage banking and derivative activity [3].

The earnings beat underscored the bank’s disciplined expense management and strategic focus on high-yield commercial lending. Nonperforming assets remained stable at $17.9 million, up slightly from $17.5 million in the prior quarter but down 12% sequentially according to one source, while provisions for credit losses totaled $3.3 million, unchanged from the previous quarter but up from $2.4 million a year ago [4]. The ratio of nonperforming assets to total loans and leases stayed consistent, indicating robust risk management practices.

Capital strength was highlighted by a 14.17% Tier 1 Capital Ratio as of June 30, 2025, up from 13.93% in the prior quarter, and an 8.46% Tier 1 Leverage Ratio, reflecting a 10-basis-point improvement [5]. The bank’s total assets declined marginally to $23.7 billion, primarily due to reductions in cash and loans, though this was partially offset by growth in investment securities. Management reaffirmed its commitment to stability by maintaining the quarterly dividend at $0.70 per share, aligning with the prior quarter’s payout [6].

Analysts noted that the results position BOH to navigate a challenging interest rate environment, though challenges remain. While net interest income growth outpaced regional peers, the bank’s return on average assets (ROA) of 1.12% lagged behind firms like Pacific Continental Corporation and Umpqua Holdings [7]. To meet its full-year earnings guidance of $4.20 per share, BOH must achieve a 15% year-over-year revenue increase in Q3 2025, requiring a 4.3% rise in loan balances and a 6% reduction in credit costs [8]. The bank plans to streamline operations by closing three underperforming branches in Hawai‘i, aiming to cut overhead costs by 6% in 2026 [9].

The market response was mixed, with shares rising 1.8% on the day of the report due to strong EPS and net interest income figures, though longer-term sentiment remained cautious amid broader economic uncertainties [10].

Source:

[1] MarketScreener, "Bank of Hawaii Q2 Earnings, Revenue Rise; Dividend Maintained," https://www.marketscreener.com/news/bank-of-hawaii-q2-earnings-revenue-rise-dividend-maintained-ce7c5fd8dd88f420

[2] MarketScreener, "Earnings Flash (BOH) Bank of Hawai‘i Corporation Reports Q2 Revenue," https://www.marketscreener.com/news/earnings-flash-boh-bank-of-hawai-i-corporation-reports-q2-revenue-174-5m-vs-factset-est-of-177-ce7c5fd8da81f025

[3] Yahoo Finance, "Bank of Hawaii: Q2 Earnings Snapshot," https://finance.yahoo.com/sectors/financial-services/banks-regional/

[4] FINVIZ.com, "Bank of Hawaii (BOH) Q2 Earnings Report Preview," https://finviz.com/news/116553/bank-of-hawaii-boh-q2-earnings-report-preview-what-to-look-for

[5] MarketScreener, "Earnings Flash (BOH) Bank of Hawai‘i Corporation Reports Q2 Revenue," https://www.marketscreener.com/news/earnings-flash-boh-bank-of-hawai-i-corporation-reports-q2-revenue-174-5m-vs-factset-est-of-177-ce7c5fd8da81f025

[6] Yahoo Finance, "Bank of Hawaii: Q2 Earnings Snapshot," https://finance.yahoo.com/sectors/financial-services/banks-regional/

[7] Yahoo Finance, "Bank of Hawaii: Q2 Earnings Snapshot," https://finance.yahoo.com/sectors/financial-services/banks-regional/

[8] FINVIZ.com, "Bank of Hawaii (BOH) Q2 Earnings Report Preview," https://finviz.com/news/116553/bank-of-hawaii-boh-q2-earnings-report-preview-what-to-look-for

[9] MarketScreener, "Bank of Hawaii Q2 Earnings, Revenue Rise; Dividend Maintained," https://www.marketscreener.com/news/bank-of-hawaii-q2-earnings-revenue-rise-dividend-maintained-ce7c5fd8dd88f420

[10] FINVIZ.com, "Bank of Hawaii (BOH) Q2 Earnings Report Preview," https://finviz.com/news/116553/bank-of-hawaii-boh-q2-earnings-report-preview-what-to-look-for