Bank of Hawaii (BOH) investor relations material

Executive summary

• Net income for Q2 2026 was $63.8M, with diluted EPS of $1.47, up 11% sequentially and 33.9% year-over-year.

• Return on average common equity improved to 15.47%, and return on assets was 1.07%.

• Net interest margin expanded for the ninth consecutive quarter to 2.78%.

• Credit quality remained strong, with net charge-offs at $3.4M (0.10%) and non-performing assets at 0.08%.

• Continued execution of strategic priorities, including wealth management and business advisory initiatives.

Financial highlights

• Net interest income was $153.6M, up $23.9M year-over-year and $2.6M sequentially.

• Noninterest income totaled $43.3M, with adjusted growth after excluding Visa-related charges.

• Noninterest expense was $111.2M, down from Q1 and flat year-over-year, aided by lower seasonal and non-recurring charges.

• Provision for credit losses was $3.6M; effective tax rate was 22.3%.

• Total loans and leases grew 1.5% from year-end to $14.3B; deposits declined 1.4% to $20.9B.

Outlook and guidance

• Net interest margin expected to approach 2.9% by year-end, assuming a 25 bps rate hike in September.

• Full-year loan growth forecasted in the lower mid-single digit range.

• Normalized non-interest income and expense for Q3 expected at ~$43M and ~$112.5M, respectively.

• Strategic runoff of $200-300M in high-cost public deposits planned in Q3.

• Share repurchases of $20M planned for Q3 and Q4.