Bank of Hawaii Reports Strong Q2 Earnings with Margin Expansion
Bank of Hawaii reported second-quarter net income of $63.8 million, or $1.47 per diluted share, reflecting an 11% sequential increase in net income and a 13% rise in earnings per share. The bank's net interest margin expanded four basis points to 2.78%, marking nine consecutive quarters of improvement. Management expects the margin to approach 2.9% by year-end under current rate assumptions. Loan growth was driven primarily by commercial and residential lending, with total loans increasing $94 million for annualized growth of about 2.6%. However, higher-cost public deposits are expected to decline in Q3 due to seasonal outflows. Nonperforming assets remained low at 0.08%, while the bank repurchased $17 million worth of shares and maintained its quarterly dividend. The company's deposit beta declined slightly to 35.5%, with average deposit costs stable around 1.27%. Executives anticipate continued margin improvement if interest rates remain steady, though they expect some pressure from competitive deposit pricing.
Tickers: $BOH
Topics: banking loan growth net interest margin share buybacks