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- **Record EPS Growth**: $1.20 diluted EPS, up 29% year-over-year, driven by NIM expansion to 2.46%.
- **Deposit Cost Efficiency**: Deposit cost declined to 154 basis points, with CDs repricing to 2.5%-3% in 2026.
- **Wealth Management Expansion**: Cetera partnership to modernize platform, targeting Hawaii's affluent market.
- **NIM Outlook**: 3% achievable as CDs reprice; 2026 rate cuts to enhance margin.
- **Capital Return**: Potential buybacks in 2026; dividend payout ratio maintained.


**【CEO Summary Section】**
- Bank of Hawaii reported diluted EPS of $1.20, up 29% year-over-year, driven by net interest margin (NIM) expansion and deposit growth.
- NIM improved by 7 basis points to 2.46%, marking the sixth consecutive quarter of expansion.
- Wealth management initiatives include a partnership with Cetera to modernize the broker-dealer platform, aiming to leverage the bank's market-leading brand in Hawaii's affluent market.
- Loan growth is expected in the low single digits, with pipeline improvements in Q3 and Q4.
- The bank anticipates 2 additional 25 basis point rate cuts this year, with NIM impact expected to turn positive post-CD repricing.

**【CFO Financial Commentary】**
- Net income of $53.3 million, up $5.7 million from the linked quarter, driven by NIM expansion and deposit repricing.
- Average deposits increased 7% annualized, with cost of deposits declining to 154 basis points.
- Noninterest expense was $112.4 million, including a $2.1 million severance charge.
- The bank sold its merchant services business, resulting in a $18 million gain offset by securities repositioning.
- Capital ratios remain above well-capitalized thresholds (Tier 1: 14.3%, Total: 15.4%).

**【Q&A Highlights】**
- Deposit spot rate at 3.32% as of September end, with 52% of CDs maturing in 2026 at 3.5% rates to be renewed at 2.5%-3%.
- NIM could reach 3% as CDs reprice downward, with 2026 rate cuts expected to enhance margin.
- Wealth management AUM growth is a strategic priority, with Cetera partnership enhancing client experience.
- Loan growth outlook for Q4 and 2026 is low single digits, with pipeline strength in commercial and consumer segments.
- Share buybacks may resume in 2026, with dividend payout ratio maintained.


Bank of Hawaii Corporation (BOH) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

BOH

BOH fundamentals

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