Bank of Hawaii Corporation Reports Q2 2026 Earnings and Outlook
Bank of Hawaii Corporation reported strong performance for the second quarter of 2026, with a ninth consecutive quarter of net interest margin expansion. The company achieved a 13% increase in diluted earnings per share (EPS), driven by improved earnings power and a return on average common equity of 15.5%. Loan growth was led by commercial & industrial lending and residential mortgages, particularly from the closing of a large condominium project. The deposit franchise remained stable with non-interest-bearing deposits holding at 27% despite seasonal outflows. Wealth management saw strong performance due to favorable market conditions and new production through its Cetera partnership. The bank expects Hawaii's economy to grow by 1.6% in 2026, supported by low unemployment and investment in military and construction sectors. Management outlined a target net interest margin of nearly 2.9% for year-end 2026 under the assumption of one rate hike mid-September. Loan growth is expected to remain steady but moderate as major residential projects conclude. The bank plans $20 million in share repurchases each quarter and anticipates non-interest expenses at around $112.5 million for Q3.
Tickers: $BOH
Topics: Bank of Hawaii deposit strategy loan growth net interest margin expansion Q2 2026 earnings