Bank of Hawaii (BOH) investor relations material

Executive summary

• Net income for Q2 2025 was $47.6M, up 40% year-over-year, with diluted EPS rising to $1.06, an 8.3% sequential and 39.8% year-over-year increase.

• Net interest margin expanded for the fifth consecutive quarter to 2.39%, up 7 bps sequentially and 24 bps year-over-year.

• Return on average common equity increased to 12.50% from 10.41% in Q2 2024 and 11.80% in Q1 2025.

• Credit quality remained strong, with net charge-offs at 0.07% and non-performing assets at 0.13%.

• Maintained a leading deposit market share and robust capital ratios.

Financial highlights

• Net interest income rose to $129.7M, up 3.1% sequentially and 13% year-over-year.

• Noninterest income was $44.8M, up 1.7% sequentially and 6% year-over-year, including a one-time BOLI gain.

• Noninterest expense was $110.8M, up 0.3% sequentially and 1.4% year-over-year, with a $1.4M severance charge.

• Total revenue grew to $174.5M, a $17.5M increase from Q2 2024.

• Effective tax rate was 21.2%, down from 24.77% a year ago.

Outlook and guidance

• Management expects continued NIM and NII expansion, targeting a 2.50% margin by year-end, assuming stable rates.

• Noninterest income forecasted at $44M–$45M for the remainder of the year.

• Expense growth guidance remains at 2%–3% for the year, with lower expenses anticipated in the second half.

• Full-year tax rate expected between 21%–22%.

• Management highlights economic headwinds in Hawai'i, including tourism and tariff impacts.