BOH · Bank of Hawaii Corporation

Bank of Hawai‘i Corporation's first quarter 2026 results reflect continued margin expansion for the eighth consecutive quarter, driven by a 22 basis point decline in interest-bearing deposit rates to 1.72% and total deposit costs falling 17 basis points to 1.26%, following FOMC rate cuts in late 2025. Net interest income increased 3.9% to $151.0 million, with NIM reaching 2.74%, though partially offset by a 4 basis point drop in earning asset yields to 4.03% due to floating-rate asset repricing. Noninterest income declined 6.6% to $41.3 million, impacted by a prior quarter's $18.1 million merchant services sale gain, with adjusted figures down 5.1% from lower fees. Noninterest expense rose 6.0% to $116.1 million, including $3.5 million in accelerated vesting costs and $0.7 million separation expenses; adjusted, it increased 1.9% on seasonal payroll and occupancy. CEO Jim Polk highlighted firm footing, resilient franchise, disciplined balance sheet management, stable deposits, and strong credit quality. Asset quality strengthened with provision for credit losses at $1.8 million (down from $2.5 million), NPAs at $12.1 million or 0.09%, and net charge-offs at 3 basis points annualized. Total loans grew 0.8% to $14.2 billion, led by 2.0% commercial loan increase, while deposits dipped 1.1% to $21.0 billion. Capital remains robust above well-capitalized levels, with Tier 1 at 14.40%, supporting $15.1 million share repurchases and a $0.70 dividend. No forward guidance provided.