Diluted Earnings Per Common Share of $1.30
Net Income of $57.4 Million
Net Interest Margin Increased to 2.74%, a 13 Basis Point Improvement
Quarterly Cost of Deposits Decreased to 1.26%, a 17 Basis Point Improvement
Share Repurchases of $15.1 Million
HONOLULU, April 20, 2026--(BUSINESS WIRE)--Bank of Hawai‘i Corporation (NYSE: BOH) (the "Company") today reported diluted earnings per common share of $1.30 for the first quarter of 2026, compared with $1.39 during the linked quarter. Net income for the quarter was $57.4 million, down 5.7% from the linked quarter. The return on average common equity for the first quarter of 2026 was 13.90% compared with 15.03% during the linked quarter.
"Bank of Hawai‘i began the year on firm footing," said Jim Polk, President and CEO. "This performance underscores the strength and resilience of our franchise. Net interest income and net interest margin continued to improve, supported by disciplined balance sheet management and a stable deposit base. Total loans and leases and average noninterest-bearing deposits increased compared to the prior quarter. Credit quality continues to be strong, and we remain focused on expense management. As I step into this role, we are committed to executing our strategy, supporting our customers and communities, and building on our strong, established foundation."
Financial Highlights
Net interest income for the first quarter of 2026 was $151.0 million, an increase of 3.9% from the linked quarter. The increase was primarily driven by a 22 basis point decline in our interest‑bearing deposit rates following the FOMC interest rate cuts in late 2025, partially offset by a 4 basis point decline in earning asset yields as floating-rate assets repriced down more than the benefit from fixed-rate assets rolling off and being reinvested at higher rates (fixed asset repricing).
Net interest margin was 2.74% in the first quarter of 2026, an increase of 13 basis points from the linked quarter, reflecting the same deposit cost and asset yield dynamics as previously mentioned.
The average yield on total earning assets was 4.03% and the average yield on loans and leases was 4.75% in the first quarter of 2026, down 4 basis points and 6 basis points, respectively, from the linked quarter. As discussed above, the decrease in loan yield from the linked quarter was primarily driven by floating-rate assets repricing to lower current interest rates, partially offset by fixed asset repricing.
The average rate of interest-bearing deposits was 1.72% and the average quarterly rate of total deposits, including noninterest-bearing deposits, was 1.26%, down 22 basis points and 17 basis points, respectively, from the linked quarter. As discussed above, the decreases were primarily due to the repricing down of our interest-bearing deposits following the FOMC interest rate cuts in late 2025. The deposit beta for the downward rate cycle was 36% as of the first quarter of 2026.
Noninterest income was $41.3 million in the first quarter of 2026, a decrease of 6.6% from the linked quarter. Noninterest income in the first quarter of 2026 included a $0.2 million charge related to a Visa Class B share conversion ratio change. Noninterest income in the linked quarter included an $18.1 million gain related to the sale of our merchant services portfolio, a $16.8 million loss on the sale of investments, and a $0.8 million charge related to a Visa Class B share conversion ratio change. Adjusted for these items, noninterest income for the first quarter of 2026 was down 5.1% from the linked quarter. The decrease was primarily due to decreases in other loan fees, which were elevated in the fourth quarter of 2025, as well as lower swap fees and trust and management fees, partially offset by higher BOLI income and annuity and insurance fees.
Noninterest expense was $116.1 million in the first quarter of 2026, an increase of 6.0% from the linked quarter. Noninterest expense in the first quarter included $3.5 million in expenses related to the accelerated vesting of restricted stock awards pursuant to the retirement provision of performance-based restricted stock granted in 2024 and 2025 and $0.7 million in separation expenses. Noninterest expense in the linked quarter included a $1.4 million reduction in our FDIC special assessment charge and a $1.1 million donation to the Bank of Hawai‘i Foundation. Adjusted for these items, noninterest expense for the first quarter of 2026 increased by 1.9% from the linked quarter. The increase was primarily due to higher seasonal payroll expenses, net occupancy, equipment expenses, and professional fees, partially offset by lower FDIC insurance and other expenses.
The effective tax rate for the first quarter of 2026 was 22.91% compared to 21.50% during the linked quarter. The higher effective tax rate in the current quarter as compared to the linked quarter was primarily due to lower benefits from certain tax advantaged investments and an increase in tax expense from discrete items.
Asset Quality
The Company’s overall asset quality remained strong during the first quarter of 2026. Provision for credit losses for the first quarter of 2026 was $1.8 million, down $0.8 million from the linked quarter.
Total non-performing assets were $12.1 million at March 31, 2026, down $2.1 million from December 31, 2025. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.09% at the end of the quarter, a decrease of 1 basis point from the linked quarter.
Net loan and lease charge-offs during the first quarter of 2026 were $1.1 million or 3 basis points annualized of total average loans and leases outstanding. Gross charge-offs of $4.1 million were partially offset by gross recoveries of $3.0 million. Compared to the linked quarter, net loan and lease charge-offs decreased by $3.1 million or 9 basis points annualized on total average loans and leases outstanding.
The allowance for credit losses on loans and leases was $147.0 million at March 31, 2026, an increase of $0.2 million from December 31, 2025. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.04% at the end of the quarter, unchanged from December 31, 2025.
Balance Sheet
Total assets were $23.9 billion at March 31, 2026, a decrease of 1.1% from December 31, 2025. The decrease from December 31, 2025 was primarily due to a reduction in cash and cash equivalents, partially offset by increases in available-for-sale securities and loans and leases.
The investment securities portfolio was $7.9 billion at March 31, 2026, an increase of 1.7% from December 31, 2025. The increase was primarily due to the purchases of available-for-sale investment securities, partially offset by the amortization of the portfolio. The investment securities portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.
Total loans and leases were $14.2 billion at March 31, 2026, an increase of 0.8% from December 31, 2025. Total commercial loans were $6.2 billion at March 31, 2026, an increase of 2.0% from December 31, 2025. The increase was primarily due to commercial mortgage production. Total consumer loans were $8.0 billion at March 31, 2026, a decrease of 0.1% from December 31, 2025. The decrease was primarily due to amortization and paydowns, partially offset by increased production in the residential mortgage portfolio.
Total deposits were $21.0 billion at March 31, 2026, a decrease of 1.1% from December 31, 2025. Noninterest-bearing deposits made up 27.0% of total deposit balances at March 31, 2026, down from 27.2% at December 31, 2025. Average total deposits were $20.9 billion for the first quarter of 2026, down 0.3% from December 31, 2025.
Capital and Dividends
The Company’s capital levels remain well above regulatory well-capitalized minimums.
The Tier 1 Capital Ratio was 14.40% at March 31, 2026 compared with 14.49% at December 31, 2025. The decrease from December 31, 2025 was due to an increase in risk-weighted assets and share repurchases, as discussed below, partially offset by retained earnings growth. The Tier 1 Leverage Ratio was 8.62% at March 31, 2026, compared with 8.57% at December 31, 2025. The increase from December 31, 2025 was due to a decline in average assets and an increase in retained earnings.
The Company repurchased 194.1 thousand shares of common stock at a total cost of $15.1 million under the share repurchase program in the first quarter of 2026. Total remaining buyback authority under the share repurchase program was $105.9 million at March 31, 2026.
The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on June 12, 2026 to shareholders of record at the close of business on May 29, 2026.
On April 3, 2026, the Company announced that the Board of Directors declared a quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, and a quarterly dividend payment of $20.00 per share, equivalent to $0.5000 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B. The depositary shares representing the Series A Preferred Stock and Series B Preferred Stock are traded on the NYSE under the symbol "BOH.PRA" and "BOH.PRB", respectively. The dividends on the Series A Preferred Stock and Series B Preferred Stock will be payable on May 1, 2026 to shareholders of record of the preferred stock as of the close of business on April 16, 2026.
Conference Call Information
The Company will review its first quarter financial results today at 8:00 a.m. Hawai‘i Time (2:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawai‘i Corporation's website, www.boh.com. The webcast can be accessed via the link: https://register-conf.media-server.com/register/BI42ddba51d0fa4b6dacb219e80a369fdb. A replay of the conference call will be available for one year beginning at approximately 11:00 a.m. Hawai‘i Time on Monday, April 20, 2026. The replay will be available on the Company's website, www.boh.com.
Investor Announcements
Investors and others should note that the Company intends to announce financial and other information to the Company’s investors using the Company’s investor relations website at https://ir.boh.com, social media channels, press releases, SEC filings and public conference calls and webcasts, all for purposes of complying with the Company’s disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, as information is updated, and new information is posted.
Forward-Looking Statements
This news release, and other statements made by the Company in connection with it may contain "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawai‘i Corporation's Annual Report on Form 10-K for the year ended December 31, 2025 which was filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.
Bank of Hawai‘i Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawai‘i and the West Pacific. The Company's principal subsidiary, Bank of Hawai‘i, was founded in 1897. For more information about Bank of Hawai‘i Corporation, see the Company’s website, www.boh.com. Bank of Hawai‘i Corporation is a trade name of Bank of Hawaii Corporation.
Bank of Hawai‘i Corporation and Subsidiaries | ||||||||||||
Financial Highlights | Table 1 | |||||||||||
Three Months Ended | ||||||||||||
(dollars in thousands, except per share amounts) | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||
For the Period: | ||||||||||||
Operating Results | ||||||||||||
Net Interest Income | $ | 150,990 | $ | 145,374 | $ | 125,807 | ||||||
Provision for Credit Losses | 1,750 | 2,500 | 3,250 | |||||||||
Total Noninterest Income | 41,332 | 44,271 | 44,058 | |||||||||
Total Noninterest Expense | 116,071 | 109,518 | 110,459 | |||||||||
Pre-Provision Net Revenue | 76,251 | 80,127 | 59,406 | |||||||||
Net Income | 57,432 | 60,935 | 43,985 | |||||||||
Net Income Available to Common Shareholders | 52,163 | 55,666 | 38,716 | |||||||||
Basic Earnings Per Common Share | 1.32 | 1.40 | 0.98 | |||||||||
Diluted Earnings Per Common Share | 1.30 | 1.39 | 0.97 | |||||||||
Dividends Declared Per Common Share | 0.70 | 0.70 | 0.70 | |||||||||
Performance Ratios | ||||||||||||
Return on Average Assets | 0.97 | % | 1.01 | % | 0.75 | % | ||||||
Return on Average Shareholders' Equity | 12.47 | 13.33 | 10.65 | |||||||||
Return on Average Common Equity | 13.90 | 15.03 | 11.80 | |||||||||
Efficiency Ratio 1 | 60.35 | 57.75 | 65.03 | |||||||||
Net Interest Margin 2 | 2.74 | 2.61 | 2.32 | |||||||||
Dividend Payout Ratio 3 | 53.03 | 50.00 | 71.43 | |||||||||
Average Shareholders' Equity to Average Assets | 7.81 | 7.57 | 7.09 | |||||||||
Average Balances | ||||||||||||
Average Loans and Leases | $ | 14,083,875 | $ | 14,013,532 | $ | 14,062,173 | ||||||
Average Assets | 23,915,334 | 23,958,401 | 23,638,068 | |||||||||
Average Deposits | 20,915,443 | 20,980,199 | 20,669,539 | |||||||||
Average Shareholders' Equity | 1,867,165 | 1,814,000 | 1,675,571 | |||||||||
Per Share of Common Stock | ||||||||||||
Book Value | $ | 38.10 | $ | 37.92 | $ | 34.23 | ||||||
Tangible Book Value | 37.31 | 37.12 | 33.43 | |||||||||
Market Value | ||||||||||||
Closing | 74.25 | 68.37 | 68.97 | |||||||||
High | 80.61 | 71.85 | 76.00 | |||||||||
Low | 67.04 | 59.36 | 65.82 | |||||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||
As of Period End: | ||||||||||||
Balance Sheet Totals | ||||||||||||
Loans and Leases | $ | 14,192,811 | $ | 14,082,050 | $ | 14,115,323 | ||||||
Total Assets | 23,909,933 | 24,176,364 | 23,885,056 | |||||||||
Total Deposits | 20,957,930 | 21,188,495 | 21,008,217 | |||||||||
Other Debt | 558,150 | 558,176 | 558,250 | |||||||||
Total Shareholders' Equity | 1,854,563 | 1,851,212 | 1,704,935 | |||||||||
Asset Quality | ||||||||||||
Non-Performing Assets | $ | 12,090 | $ | 14,171 | $ | 17,451 | ||||||
Allowance for Credit Losses - Loans and Leases | 146,962 | 146,766 | 147,707 | |||||||||
Allowance to Loans and Leases Outstanding 4 | 1.04 | % | 1.04 | % | 1.05 | % | ||||||
Capital Ratios 5 | ||||||||||||
Common Equity Tier 1 Capital Ratio 6 | 12.06 | % | 12.14 | % | 11.58 | % | ||||||
Tier 1 Capital Ratio | 14.40 | 14.49 | 13.93 | |||||||||
Total Capital Ratio | 15.44 | 15.54 | 14.97 | |||||||||
Tier 1 Leverage Ratio | 8.62 | 8.57 | 8.36 | |||||||||
Total Shareholders' Equity to Total Assets | 7.76 | 7.66 | 7.14 | |||||||||
Tangible Common Equity to Tangible Assets 7 | 6.19 | 6.11 | 5.57 | |||||||||
Tangible Common Equity to Risk-Weighted Assets 7 | 10.28 | 10.35 | 9.28 | |||||||||
Non-Financial Data | ||||||||||||
Full-Time Equivalent Employees | 1,866 | 1,877 | 1,876 | |||||||||
Branches | 52 | 51 | 50 | |||||||||
ATMs | 319 | 320 | 316 | |||||||||
1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income). | ||||||||||||
Bank of Hawai‘i Corporation and Subsidiaries | |||||||||
Reconciliation of Non-GAAP Financial Measures | Table 2 | ||||||||
(dollars in thousands) | March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||
Total Shareholders' Equity | $ | 1,854,563 | $ | 1,851,212 | $ | 1,704,935 | |||
Less: Preferred Stock | 345,000 | 345,000 | 345,000 | ||||||
Goodwill | 31,517 | 31,517 | 31,517 | ||||||
Tangible Common Equity | $ | 1,478,046 | $ | 1,474,695 | $ | 1,328,418 | |||
Total Assets | $ | 23,909,933 | $ | 24,176,364 | $ | 23,885,056 | |||
Less: Goodwill | 31,517 | 31,517 | 31,517 | ||||||
Tangible Assets | $ | 23,878,416 | $ | 24,144,847 | $ | 23,853,539 | |||
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements 1, 2 | $ | 14,382,622 | $ | 14,246,238 | $ | 14,319,932 | |||
Total Shareholders' Equity to Total Assets | 7.76% | 7.66% | 7.14% | ||||||
Tangible Common Equity to Tangible Assets (Non-GAAP) | 6.19% | 6.11% | 5.57% | ||||||
Tier 1 Capital Ratio 1 | 14.40% | 14.49% | 13.93% | ||||||
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP) 1 | 10.28% | 10.35% | 9.28% | ||||||
1 Regulatory capital ratios as of March 31, 2026 are preliminary. | |||||||||
Bank of Hawai‘i Corporation and Subsidiaries | ||||||||||||
Consolidated Statements of Income | Table 3 | |||||||||||
Three Months Ended | ||||||||||||
(dollars in thousands, except per share amounts) | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||
Interest Income | ||||||||||||
Interest and Fees on Loans and Leases | $ | 164,469 | $ | 168,234 | $ | 163,082 | ||||||
Income on Investment Securities | ||||||||||||
Available-for-Sale | 34,575 | 32,950 | 24,368 | |||||||||
Held-to-Maturity | 18,541 | 18,929 | 20,291 | |||||||||
Cash and Cash Equivalents | 3,329 | 5,936 | 5,460 | |||||||||
Other | 1,293 | 1,245 | 1,085 | |||||||||
Total Interest Income | 222,207 | 227,294 | 214,286 | |||||||||
Interest Expense | ||||||||||||
Deposits | 64,886 | 75,477 | 81,692 | |||||||||
Securities Sold Under Agreements to Repurchase | 486 | 496 | 744 | |||||||||
Other Debt | 5,845 | 5,947 | 6,043 | |||||||||
Total Interest Expense | 71,217 | 81,920 | 88,479 | |||||||||
Net Interest Income | 150,990 | 145,374 | 125,807 | |||||||||
Provision for Credit Losses | 1,750 | 2,500 | 3,250 | |||||||||
Net Interest Income After Provision for Credit Losses | 149,240 | 142,874 | 122,557 | |||||||||
Noninterest Income | ||||||||||||
Trust and Asset Management | 12,445 | 12,883 | 11,741 | |||||||||
Fees, Exchange, and Other Service Charges | 10,928 | 12,298 | 14,437 | |||||||||
Service Charges on Deposit Accounts | 8,440 | 8,694 | 8,259 | |||||||||
Bank-Owned Life Insurance | 4,147 | 3,758 | 3,611 | |||||||||
Annuity and Insurance | 1,469 | 1,124 | 1,555 | |||||||||
Mortgage Banking | 876 | 917 | 988 | |||||||||
Investment Securities Losses, Net | (1,272 | ) | (18,717 | ) | (1,607 | ) | ||||||
Other | 4,299 | 23,314 | 5,074 | |||||||||
Total Noninterest Income | 41,332 | 44,271 | 44,058 | |||||||||
Noninterest Expense | ||||||||||||
Salaries and Benefits | 68,457 | 61,675 | 62,884 | |||||||||
Net Occupancy | 10,782 | 10,029 | 10,559 | |||||||||
Net Equipment | 10,611 | 10,047 | 10,192 | |||||||||
Data Processing | 5,581 | 5,659 | 5,267 | |||||||||
Professional Fees | 4,226 | 3,682 | 4,264 | |||||||||
FDIC Insurance | 2,719 | 2,378 | 1,642 | |||||||||
Other | 13,695 | 16,048 | 15,651 | |||||||||
Total Noninterest Expense | 116,071 | 109,518 | 110,459 | |||||||||
Income Before Provision for Income Taxes | 74,501 | 77,627 | 56,156 | |||||||||
Provision for Income Taxes | 17,069 | 16,692 | 12,171 | |||||||||
Net Income | $ | 57,432 | $ | 60,935 | $ | 43,985 | ||||||
Preferred Stock Dividends | 5,269 | 5,269 | 5,269 | |||||||||
Net Income Available to Common Shareholders | $ | 52,163 | $ | 55,666 | $ | 38,716 | ||||||
Basic Earnings Per Common Share | $ | 1.32 | $ | 1.40 | $ | 0.98 | ||||||
Diluted Earnings Per Common Share | $ | 1.30 | $ | 1.39 | $ | 0.97 | ||||||
Dividends Declared Per Common Share | $ | 0.70 | $ | 0.70 | $ | 0.70 | ||||||
Basic Weighted Average Common Shares | 39,568,000 | 39,641,382 | 39,554,834 | |||||||||
Diluted Weighted Average Common Shares | 39,981,356 | 40,003,635 | 39,876,406 | |||||||||
Bank of Hawai‘i Corporation and Subsidiaries | ||||||||||
Consolidated Statements of Comprehensive Income | Table 4 | |||||||||
Three Months Ended | ||||||||||
(dollars in thousands) | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||
Net Income | $ | 57,432 | $ | 60,935 | $ | 43,985 | ||||
Other Comprehensive Income (Loss), Net of Tax: | ||||||||||
Net Change in Unrealized Gains (Losses) on Investment Securities | (3,001 | ) | 29,367 | 24,760 | ||||||
Net Change in Defined Benefit Plans | 222 | 2,446 | 232 | |||||||
Other Comprehensive Income (Loss) | (2,779 | ) | 31,813 | 24,992 | ||||||
Comprehensive Income | $ | 54,653 | $ | 92,748 | $ | 68,977 | ||||
Bank of Hawai‘i Corporation and Subsidiaries | ||||||||||||
Consolidated Statements of Condition | Table 5 | |||||||||||
(dollars in thousands, except per share amounts) | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||
Assets | ||||||||||||
Cash and Cash Equivalents | $ | 425,080 | $ | 946,520 | $ | 935,200 | ||||||
Investment Securities | ||||||||||||
Available-for-Sale | 3,722,405 | 3,510,652 | 2,887,019 | |||||||||
Held-to-Maturity (Fair Value of $3,549,687; $3,651,966; and $3,823,655) | 4,163,261 | 4,245,681 | 4,535,108 | |||||||||
Loans Held for Sale | 3,609 | 4,369 | 2,640 | |||||||||
Loans and Leases | 14,192,811 | 14,082,050 | 14,115,323 | |||||||||
Allowance for Credit Losses | (146,962 | ) | (146,766 | ) | (147,707 | ) | ||||||
Net Loans and Leases | 14,045,849 | 13,935,284 | 13,967,616 | |||||||||
Premises and Equipment, Net | 215,859 | 199,747 | 187,858 | |||||||||
Operating Lease Right-of-Use Assets | 82,244 | 83,424 | 83,577 | |||||||||
Accrued Interest Receivable | 70,555 | 69,899 | 67,706 | |||||||||
Mortgage Servicing Rights | 17,036 | 17,455 | 18,770 | |||||||||
Goodwill | 31,517 | 31,517 | 31,517 | |||||||||
Bank-Owned Life Insurance | 499,681 | 499,795 | 481,260 | |||||||||
Other Assets | 632,837 | 632,021 | 686,785 | |||||||||
Total Assets | $ | 23,909,933 | $ | 24,176,364 | $ | 23,885,056 | ||||||
Liabilities | ||||||||||||
Deposits | ||||||||||||
Noninterest-Bearing Demand | $ | 5,653,265 | $ | 5,755,371 | $ | 5,493,232 | ||||||
Interest-Bearing Demand | 3,884,305 | 3,910,952 | 3,775,948 | |||||||||
Savings | 8,683,875 | 8,741,090 | 8,700,143 | |||||||||
Time | 2,736,485 | 2,781,082 | 3,038,894 | |||||||||
Total Deposits | 20,957,930 | 21,188,495 | 21,008,217 | |||||||||
Securities Sold Under Agreements to Repurchase | 50,000 | 50,000 | 50,000 | |||||||||
Other Debt | 558,150 | 558,176 | 558,250 | |||||||||
Operating Lease Liabilities | 91,213 | 92,402 | 92,267 | |||||||||
Retirement Benefits Payable | 25,686 | 20,139 | 23,640 | |||||||||
Accrued Interest Payable | 19,757 | 22,370 | 23,261 | |||||||||
Other Liabilities | 352,634 | 393,570 | 424,486 | |||||||||
Total Liabilities | 22,055,370 | 22,325,152 | 22,180,121 | |||||||||
Shareholders’ Equity | ||||||||||||
Preferred Stock (Series A, $.01 par value; authorized 180,000 shares issued and outstanding) | 180,000 | 180,000 | 180,000 | |||||||||
Preferred Stock (Series B, $.01 par value; authorized 165,000 shares issued and outstanding) | 165,000 | 165,000 | 165,000 | |||||||||
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: March 31, 2026 - 59,000,929 / 39,620,563; December 31, 2025 - 58,780,253 / 39,725,698; and March 31, 2025 - 58,765,864 / 39,734,304) | 590 | 587 | 586 | |||||||||
Capital Surplus | 672,584 | 664,781 | 651,374 | |||||||||
Accumulated Other Comprehensive Loss | (247,217 | ) | (244,438 | ) | (318,397 | ) | ||||||
Retained Earnings | 2,229,539 | 2,205,707 | 2,144,326 | |||||||||
Treasury Stock, at Cost (Shares: March 31, 2026 - 19,380,366; December 31, 2025 - 19,054,555; and March 31, 2025 - 19,031,560) | (1,145,933 | ) | (1,120,425 | ) | (1,117,954 | ) | ||||||
Total Shareholders’ Equity | 1,854,563 | 1,851,212 | 1,704,935 | |||||||||
Total Liabilities and Shareholders’ Equity | $ | 23,909,933 | $ | 24,176,364 | $ | 23,885,056 | ||||||
Bank of Hawai‘i Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||
Consolidated Statements of Shareholders' Equity | Table 6 | ||||||||||||||||||||||||||||||||||
(dollars in thousands, except per share amounts) | Preferred Shares Series A Outstanding | Preferred Series A Stock | Preferred Shares Series B Outstanding | Preferred Series B Stock | Common Shares Outstanding | Common Stock | Capital Surplus | Accum. Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total | ||||||||||||||||||||||||
Balance as of December 31, 2025 | 180,000 | $ | 180,000 | 165,000 | $ | 165,000 | 39,725,698 | $ | 587 | $ | 664,781 | $ | (244,438 | ) | $ | 2,205,707 | $ | (1,120,425 | ) | $ | 1,851,212 | ||||||||||||||
Net Income | – | – | – | – | – | – | – | – | 57,432 | – | 57,432 | ||||||||||||||||||||||||
Other Comprehensive Loss | – | – | – | – | – | – | – | (2,779 | ) | – | – | (2,779 | ) | ||||||||||||||||||||||
Share-Based Compensation | – | – | – | – | – | – | 7,459 | – | – | – | 7,459 | ||||||||||||||||||||||||
Common Stock Issued Under Purchase and Equity Compensation Plans | – | – | – | – | 237,399 | 3 | 344 | – | – | 881 | 1,228 | ||||||||||||||||||||||||
Common Stock Repurchased Under Share Repurchase Program | – | – | – | – | (194,096 | ) | – | – | – | – | (15,109 | ) | (15,109 | ) | |||||||||||||||||||||
Equity Compensation Plan Common Stock Repurchases | – | – | – | – | (148,438 | ) | – | – | – | – | (11,280 | ) | (11,280 | ) | |||||||||||||||||||||
Cash Dividends Declared Common Stock ($0.70 per share) | – | – | – | – | – | – | – | – | (28,331 | ) | – | (28,331 | ) | ||||||||||||||||||||||
Cash Dividends Declared Preferred Stock | – | – | – | – | – | – | – | – | (5,269 | ) | – | (5,269 | ) | ||||||||||||||||||||||
Balance as of March 31, 2026 | 180,000 | $ | 180,000 | 165,000 | $ | 165,000 | 39,620,563 | $ | 590 | $ | 672,584 | $ | (247,217 | ) | $ | 2,229,539 | $ | (1,145,933 | ) | $ | 1,854,563 | ||||||||||||||
Balance as of December 31, 2024 | 180,000 | $ | 180,000 | 165,000 | $ | 165,000 | 39,762,255 | $ | 585 | $ | 647,403 | $ | (343,389 | ) | $ | 2,133,838 | $ | (1,115,663 | ) | $ | 1,667,774 | ||||||||||||||
Net Income | – | – | – | – | – | – | – | – | 43,985 | – | 43,985 | ||||||||||||||||||||||||
Other Comprehensive Income | – | – | – | – | – | – | – | 24,992 | – | – | 24,992 | ||||||||||||||||||||||||
Share-Based Compensation | – | – | – | – | – | – | 3,680 | – | – | – | 3,680 | ||||||||||||||||||||||||
Common Stock Issued Under Purchase and Equity Compensation Plans | – | – | – | – | 19,477 | 1 | 291 | – | – | 1,023 | 1,315 | ||||||||||||||||||||||||
Equity Compensation Plan Common Stock Repurchases | – | – | – | – | (47,428 | ) | – | – | – | – | (3,314 | ) | (3,314 | ) | |||||||||||||||||||||
Cash Dividends Declared Common Stock ($0.70 per share) | – | – | – | – | – | – | – | – | (28,228 | ) | – | (28,228 | ) | ||||||||||||||||||||||
Cash Dividends Declared Preferred Stock | – | – | – | – | – | – | – | – | (5,269 | ) | – | (5,269 | ) | ||||||||||||||||||||||
Balance as of March 31, 2025 | 180,000 | $ | 180,000 | 165,000 | $ | 165,000 | 39,734,304 | $ | 586 | $ | 651,374 | $ | (318,397 | ) | $ | 2,144,326 | $ | (1,117,954 | ) | $ | 1,704,935 | ||||||||||||||
Bank of Hawai‘i Corporation and Subsidiaries | |||||||||||||||||||||||||||
Average Balances and Interest Rates - Taxable-Equivalent Basis 1 | Table 7 | ||||||||||||||||||||||||||
Three Months Ended March 31, 2026 | Three Months Ended December 31, 2025 | Three Months Ended March 31, 2025 | |||||||||||||||||||||||||
(dollars in millions) | Average Balance | Income/Expense 2 | Yield/Rate | Average Balance | Income/Expense 2 | Yield/Rate | Average Balance | Income/Expense 2 | Yield/Rate | ||||||||||||||||||
Earning Assets | |||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 372.5 | $ | 3.3 | 3.58 | % | $ | 604.5 | $ | 6.0 | 3.84 | % | $ | 500.0 | $ | 5.5 | 4.37 | % | |||||||||
Investment Securities | |||||||||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||||||||
Taxable | 3,598.1 | 34.2 | 3.82 | 3,363.4 | 32.5 | 3.86 | 2,790.3 | 24.1 | 3.47 | ||||||||||||||||||
Non-Taxable | 32.1 | 0.4 | 5.07 | 32.0 | 0.5 | 5.80 | 21.3 | 0.3 | 5.68 | ||||||||||||||||||
Held-to-Maturity | |||||||||||||||||||||||||||
Taxable | 4,175.4 | 18.4 | 1.76 | 4,265.7 | 18.8 | 1.76 | 4,548.6 | 20.2 | 1.77 | ||||||||||||||||||
Non-Taxable | 33.5 | 0.2 | 2.10 | 33.7 | 0.2 | 2.10 | 34.1 | 0.2 | 2.09 | ||||||||||||||||||
Total Investment Securities | 7,839.1 | 53.2 | 2.72 | 7,694.8 | 52.0 | 2.70 | 7,394.3 | 44.8 | 2.43 | ||||||||||||||||||
Loans Held for Sale | 3.6 | 0.1 | 5.22 | 2.4 | 0.0 | 5.51 | 2.3 | 0.0 | 6.06 | ||||||||||||||||||
Loans and Leases 3 | |||||||||||||||||||||||||||
Commercial Mortgage | 4,220.6 | 54.1 | 5.19 | 4,124.5 | 55.2 | 5.31 | 4,015.2 | 52.5 | 5.30 | ||||||||||||||||||
Commercial and Industrial | 1,583.4 | 18.7 | 4.79 | 1,590.0 | 19.6 | 4.90 | 1,703.7 | 21.3 | 5.06 | ||||||||||||||||||
Construction | 215.7 | 3.4 | 6.46 | 265.5 | 4.6 | 6.89 | 338.5 | 6.0 | 7.22 | ||||||||||||||||||
Commercial Lease Financing | 86.9 | 0.9 | 4.29 | 89.7 | 0.9 | 4.19 | 91.1 | 0.9 | 3.83 | ||||||||||||||||||
Residential Mortgage | 4,781.9 | 47.8 | 4.00 | 4,719.8 | 47.5 | 4.03 | 4,616.7 | 44.8 | 3.88 | ||||||||||||||||||
Home Equity | 2,103.1 | 23.6 | 4.55 | 2,122.1 | 24.3 | 4.54 | 2,154.4 | 22.5 | 4.23 | ||||||||||||||||||
Automobile | 684.6 | 9.4 | 5.57 | 692.7 | 9.6 | 5.49 | 752.6 | 9.3 | 5.02 | ||||||||||||||||||
Other | 407.7 | 7.8 | 7.76 | 409.2 | 7.9 | 7.64 | 390.0 | 7.1 | 7.41 | ||||||||||||||||||
Total Loans and Leases | 14,083.9 | 165.7 | 4.75 | 14,013.5 | 169.6 | 4.81 | 14,062.2 | 164.4 | 4.72 | ||||||||||||||||||
Other | 81.9 | 1.3 | 6.31 | 82.2 | 1.2 | 6.06 | 65.1 | 1.1 | 6.67 | ||||||||||||||||||
Total Earning Assets | 22,381.0 | 223.6 | 4.03 | 22,397.4 | 228.8 | 4.07 | 22,023.9 | 215.8 | 3.95 | ||||||||||||||||||
Non-Earning Assets | 1,534.3 | 1,561.0 | 1,614.2 | ||||||||||||||||||||||||
Total Assets | $ | 23,915.3 | $ | 23,958.4 | $ | 23,638.1 | |||||||||||||||||||||
Interest-Bearing Liabilities | |||||||||||||||||||||||||||
Interest-Bearing Deposits | |||||||||||||||||||||||||||
Demand | $ | 3,839.0 | $ | 6.6 | 0.69 | % | $ | 3,697.9 | $ | 7.3 | 0.78 | % | $ | 3,773.4 | $ | 7.1 | 0.76 | % | |||||||||
Savings | 8,668.4 | 38.7 | 1.81 | 8,738.2 | 44.3 | 2.01 | 8,544.5 | 47.1 | 2.23 | ||||||||||||||||||
Time | 2,753.6 | 19.6 | 2.89 | 2,974.0 | 23.9 | 3.18 | 3,037.3 | 27.5 | 3.67 | ||||||||||||||||||
Total Interest-Bearing Deposits | 15,261.0 | 64.9 | 1.72 | 15,410.1 | 75.5 | 1.94 | 15,355.2 | 81.7 | 2.16 | ||||||||||||||||||
Securities Sold Under Agreements to Repurchase | 50.0 | 0.5 | 3.89 | 50.0 | 0.5 | 3.89 | 76.7 | 0.7 | 3.88 | ||||||||||||||||||
Other Debt | 560.9 | 5.8 | 4.23 | 558.2 | 5.9 | 4.23 | 578.2 | 6.1 | 4.24 | ||||||||||||||||||
Total Interest-Bearing Liabilities | 15,871.9 | 71.2 | 1.82 | 16,018.3 | 81.9 | 2.03 | 16,010.1 | 88.5 | 2.24 | ||||||||||||||||||
Net Interest Income | $ | 152.4 | $ | 146.9 | $ | 127.3 | |||||||||||||||||||||
Interest Rate Spread | 2.21 | % | 2.04 | % | 1.71 | % | |||||||||||||||||||||
Net Interest Margin | 2.74 | % | 2.61 | % | 2.32 | % | |||||||||||||||||||||
Noninterest-Bearing Demand Deposits | 5,654.4 | 5,570.1 | 5,314.3 | ||||||||||||||||||||||||
Other Liabilities | 521.8 | 556.0 | 638.1 | ||||||||||||||||||||||||
Shareholders' Equity | 1,867.2 | 1,814.0 | 1,675.6 | ||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 23,915.3 | $ | 23,958.4 | $ | 23,638.1 | |||||||||||||||||||||
1 Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report. | |||||||||||||||||||||||||||
Bank of Hawai‘i Corporation and Subsidiaries | ||||||||||||
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis | Table 8a | |||||||||||
Three Months Ended March 31, 2026 | ||||||||||||
Compared to December 31, 2025 | ||||||||||||
(dollars in millions) | Volume 1 | Rate 1 | Total | |||||||||
Change in Interest Income: | ||||||||||||
Cash and Cash Equivalents | $ | (2.2 | ) | $ | (0.4 | ) | $ | (2.6 | ) | |||
Investment Securities | ||||||||||||
Available-for-Sale | ||||||||||||
Taxable | 2.1 | (0.4 | ) | 1.7 | ||||||||
Non-Taxable | — | (0.1 | ) | (0.1 | ) | |||||||
Held-to-Maturity | ||||||||||||
Taxable | (0.4 | ) | 0.0 | (0.4 | ) | |||||||
Non-Taxable | 0.0 | — | 0.0 | |||||||||
Total Investment Securities | 1.7 | (0.5 | ) | 1.2 | ||||||||
Loans Held for Sale | 0.0 | 0.0 | 0.0 | |||||||||
Loans and Leases | ||||||||||||
Commercial Mortgage | 0.6 | (1.8 | ) | (1.2 | ) | |||||||
Commercial and Industrial | (0.1 | ) | (0.8 | ) | (0.9 | ) | ||||||
Construction | (0.9 | ) | (0.3 | ) | (1.2 | ) | ||||||
Commercial Lease Financing | 0.0 | 0.0 | 0.0 | |||||||||
Residential Mortgage | 0.6 | (0.3 | ) | 0.3 | ||||||||
Home Equity | (0.5 | ) | (0.1 | ) | (0.6 | ) | ||||||
Automobile | (0.2 | ) | 0.0 | (0.2 | ) | |||||||
Other | (0.1 | ) | 0.0 | (0.1 | ) | |||||||
Total Loans and Leases | (0.6 | ) | (3.3 | ) | (3.9 | ) | ||||||
Other | 0.0 | 0.0 | 0.0 | |||||||||
Total Change in Interest Income | (1.1 | ) | (4.2 | ) | (5.3 | ) | ||||||
Change in Interest Expense: | ||||||||||||
Interest-Bearing Deposits | ||||||||||||
Demand | 0.2 | (0.9 | ) | (0.7 | ) | |||||||
Savings | (0.4 | ) | (5.2 | ) | (5.6 | ) | ||||||
Time | (1.9 | ) | (2.4 | ) | (4.3 | ) | ||||||
Total Interest-Bearing Deposits | (2.1 | ) | (8.5 | ) | (10.6 | ) | ||||||
Securities Sold Under Agreements to Repurchase | — | 0.0 | 0.0 | |||||||||
Other Debt | (0.1 | ) | 0.0 | (0.1 | ) | |||||||
Total Change in Interest Expense | (2.2 | ) | (8.5 | ) | (10.7 | ) | ||||||
Change in Net Interest Income | $ | 1.1 | $ | 4.3 | $ | 5.4 | ||||||
1 The change in interest income and expense due to both volume and rate has been allocated between the factors in proportion to the relationship of the absolute dollar amounts of the change in each. | ||||||||||||
Bank of Hawai‘i Corporation and Subsidiaries | ||||||||||||
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis | Table 8b | |||||||||||
Three Months Ended March 31, 2026 | ||||||||||||
Compared to March 31, 2025 | ||||||||||||
(dollars in millions) | Volume 1 | Rate 1 | Total | |||||||||
Change in Interest Income: | ||||||||||||
Cash and Cash Equivalents | $ | (1.2 | ) | $ | (0.9 | ) | $ | (2.1 | ) | |||
Investment Securities | ||||||||||||
Available-for-Sale | ||||||||||||
Taxable | 7.5 | 2.6 | 10.1 | |||||||||
Non-Taxable | 0.1 | 0.0 | 0.1 | |||||||||
Held-to-Maturity | ||||||||||||
Taxable | (1.6 | ) | (0.1 | ) | (1.7 | ) | ||||||
Non-Taxable | 0.0 | — | 0.0 | |||||||||
Total Investment Securities | 6.0 | 2.5 | 8.5 | |||||||||
Loans Held for Sale | 0.0 | 0.0 | 0.0 | |||||||||
Loans and Leases | ||||||||||||
Commercial Mortgage | 2.7 | (1.2 | ) | 1.5 | ||||||||
Commercial and Industrial | (1.5 | ) | (1.1 | ) | (2.6 | ) | ||||||
Construction | (2.0 | ) | (0.6 | ) | (2.6 | ) | ||||||
Commercial Lease Financing | 0.0 | 0.1 | 0.1 | |||||||||
Residential Mortgage | 1.6 | 1.4 | 3.0 | |||||||||
Home Equity | (0.5 | ) | 1.6 | 1.1 | ||||||||
Automobile | (0.9 | ) | 1.0 | 0.1 | ||||||||
Other | 0.3 | 0.4 | 0.7 | |||||||||
Total Loans and Leases | (0.3 | ) | 1.6 | 1.3 | ||||||||
Other | 0.4 | (0.3 | ) | 0.1 | ||||||||
Total Change in Interest Income | 4.9 | 2.9 | 7.8 | |||||||||
Change in Interest Expense: | ||||||||||||
Interest-Bearing Deposits | ||||||||||||
Demand | 0.2 | (0.7 | ) | (0.5 | ) | |||||||
Savings | 0.6 | (9.0 | ) | (8.4 | ) | |||||||
Time | (2.4 | ) | (5.5 | ) | (7.9 | ) | ||||||
Total Interest-Bearing Deposits | (1.6 | ) | (15.2 | ) | (16.8 | ) | ||||||
Securities Sold Under Agreements to Repurchase | (0.3 | ) | 0.0 | (0.3 | ) | |||||||
Other Debt | (0.2 | ) | 0.0 | (0.2 | ) | |||||||
Total Change in Interest Expense | (2.1 | ) | (15.2 | ) | (17.3 | ) | ||||||
Change in Net Interest Income | $ | 7.0 | $ | 18.1 | $ | 25.1 | ||||||
1 The change in interest income and expense due to both volume and rate has been allocated between the factors in proportion to the relationship of the absolute dollar amounts of the change in each. | ||||||||||||
Bank of Hawai‘i Corporation and Subsidiaries | |||||||||
Salaries and Benefits | Table 9 | ||||||||
Three Months Ended | |||||||||
(dollars in thousands) | March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||
Salaries | $ | 38,990 | $ | 39,915 | $ | 38,242 | |||
Share-Based Compensation | 7,282 | 4,379 | 3,501 | ||||||
Incentive Compensation | 6,083 | 4,535 | 5,573 | ||||||
Payroll Taxes | 5,321 | 2,740 | 4,766 | ||||||
Retirement and Other Benefits | 4,597 | 4,378 | 5,061 | ||||||
Medical, Dental, and Life Insurance | 4,222 | 3,916 | 4,537 | ||||||
Commission Expense | 1,213 | 1,670 | 1,123 | ||||||
Separation Expense | 749 | 142 | 81 | ||||||
Total Salaries and Benefits | $ | 68,457 | $ | 61,675 | $ | 62,884 | |||
Bank of Hawai‘i Corporation and Subsidiaries | |||||||||||||||
Loan and Lease Portfolio Balances | Table 10 | ||||||||||||||
(dollars in thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||
Commercial | |||||||||||||||
Commercial Mortgage | $ | 4,341,448 | $ | 4,205,791 | $ | 4,040,711 | $ | 4,038,956 | $ | 4,038,287 | |||||
Commercial and Industrial | 1,575,207 | 1,584,245 | 1,581,232 | 1,597,560 | 1,703,290 | ||||||||||
Construction | 204,993 | 208,584 | 380,944 | 374,768 | 363,716 | ||||||||||
Lease Financing | 84,651 | 88,303 | 92,213 | 92,842 | 92,456 | ||||||||||
Total Commercial | 6,206,299 | 6,086,923 | 6,095,100 | 6,104,126 | 6,197,749 | ||||||||||
Consumer | |||||||||||||||
Residential Mortgage | 4,800,256 | 4,775,502 | 4,685,214 | 4,637,014 | 4,630,876 | ||||||||||
Home Equity | 2,095,521 | 2,114,809 | 2,129,599 | 2,139,025 | 2,144,955 | ||||||||||
Automobile | 680,570 | 690,376 | 699,244 | 715,688 | 740,390 | ||||||||||
Other | 410,165 | 414,440 | 412,422 | 406,325 | 401,353 | ||||||||||
Total Consumer | 7,986,512 | 7,995,127 | 7,926,479 | 7,898,052 | 7,917,574 | ||||||||||
Total Loans and Leases | $ | 14,192,811 | $ | 14,082,050 | $ | 14,021,579 | $ | 14,002,178 | $ | 14,115,323 | |||||
Deposits | |||||||||||||||
(dollars in thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||
Consumer | $ | 10,530,223 | $ | 10,466,617 | $ | 10,393,932 | $ | 10,429,271 | $ | 10,522,627 | |||||
Commercial | 8,340,279 | 8,597,265 | 8,348,396 | 8,243,898 | 8,411,838 | ||||||||||
Public and Other | 2,087,428 | 2,124,613 | 2,338,341 | 2,125,745 | 2,073,752 | ||||||||||
Total Deposits | $ | 20,957,930 | $ | 21,188,495 | $ | 21,080,669 | $ | 20,798,914 | $ | 21,008,217 | |||||
Average Deposits | |||||||||||||||
Three Months Ended | |||||||||||||||
(dollars in thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||
Consumer | $ | 10,461,004 | $ | 10,373,200 | $ | 10,387,715 | $ | 10,435,867 | $ | 10,408,747 | |||||
Commercial | 8,431,519 | 8,478,592 | 8,504,078 | 8,316,893 | 8,318,182 | ||||||||||
Public and Other | 2,022,920 | 2,128,407 | 2,176,493 | 1,946,933 | 1,942,610 | ||||||||||
Total Deposits | $ | 20,915,443 | $ | 20,980,199 | $ | 21,068,286 | $ | 20,699,693 | $ | 20,669,539 | |||||
Bank of Hawai‘i Corporation and Subsidiaries | ||||||||||||||||||||
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More | Table 11 | |||||||||||||||||||
(dollars in thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
Non-Performing Assets | ||||||||||||||||||||
Non-Accrual Loans and Leases | ||||||||||||||||||||
Commercial | ||||||||||||||||||||
Commercial Mortgage | $ | - | $ | 2,085 | $ | 2,498 | $ | 2,566 | $ | 2,195 | ||||||||||
Commercial and Industrial | 1,860 | 1,940 | 3,506 | 3,744 | 3,451 | |||||||||||||||
Total Commercial | 1,860 | 4,025 | 6,004 | 6,310 | 5,646 | |||||||||||||||
Consumer | ||||||||||||||||||||
Residential Mortgage | 5,410 | 5,382 | 5,628 | 5,842 | 4,686 | |||||||||||||||
Home Equity | 4,525 | 4,469 | 5,107 | 5,387 | 5,759 | |||||||||||||||
Total Consumer | 9,935 | 9,851 | 10,735 | 11,229 | 10,445 | |||||||||||||||
Total Non-Accrual Loans and Leases | 11,795 | 13,876 | 16,739 | 17,539 | 16,091 | |||||||||||||||
Foreclosed Real Estate | 295 | 295 | 125 | 342 | 1,360 | |||||||||||||||
Total Non-Performing Assets | $ | 12,090 | $ | 14,171 | $ | 16,864 | $ | 17,881 | $ | 17,451 | ||||||||||
Accruing Loans and Leases Past Due 90 Days or More | ||||||||||||||||||||
Consumer | ||||||||||||||||||||
Residential Mortgage | $ | 10,733 | $ | 8,834 | $ | 7,456 | $ | 9,070 | $ | 3,895 | ||||||||||
Home Equity | 1,556 | 2,152 | 2,765 | 1,867 | 2,228 | |||||||||||||||
Automobile | 672 | 520 | 525 | 680 | 486 | |||||||||||||||
Other | 764 | 753 | 578 | 630 | 943 | |||||||||||||||
Total Consumer | 13,725 | 12,259 | 11,324 | 12,247 | 7,552 | |||||||||||||||
Total Accruing Loans and Leases Past Due 90 Days or More | $ | 13,725 | $ | 12,259 | $ | 11,324 | $ | 12,247 | $ | 7,552 | ||||||||||
Total Loans and Leases | $ | 14,192,811 | $ | 14,082,050 | $ | 14,021,579 | $ | 14,002,178 | $ | 14,115,323 | ||||||||||
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases | 0.08 | % | 0.10 | % | 0.12 | % | 0.13 | % | 0.11 | % | ||||||||||
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate | 0.09 | % | 0.10 | % | 0.12 | % | 0.13 | % | 0.12 | % | ||||||||||
Ratio of Non-Performing Assets to Total Assets | 0.05 | % | 0.06 | % | 0.07 | % | 0.08 | % | 0.07 | % | ||||||||||
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate | 0.03 | % | 0.07 | % | 0.10 | % | 0.10 | % | 0.09 | % | ||||||||||
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate | 0.13 | % | 0.13 | % | 0.14 | % | 0.15 | % | 0.15 | % | ||||||||||
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases and Foreclosed Real Estate | 0.18 | % | 0.19 | % | 0.20 | % | 0.22 | % | 0.18 | % | ||||||||||
Quarter to Quarter Changes in Non-Performing Assets Balance at Beginning of Quarter | $ | 14,171 | $ | 16,864 | $ | 17,881 | $ | 17,451 | $ | 19,300 | ||||||||||
Additions 1 | 1,010 | 2,608 | 959 | 3,522 | 2,209 | |||||||||||||||
Reductions | ||||||||||||||||||||
Payments | (2,744 | ) | (2,631 | ) | (804 | ) | (1,424 | ) | (1,212 | ) | ||||||||||
Return to Accrual Status | (341 | ) | (1,217 | ) | (321 | ) | (574 | ) | (244 | ) | ||||||||||
Sales of Foreclosed Real Estate | - | (120 | ) | (216 | ) | (1,040 | ) | (1,492 | ) | |||||||||||
Charge-offs / Write-downs 1 | (6 | ) | (1,333 | ) | (635 | ) | (54 | ) | (1,110 | ) | ||||||||||
Total Reductions | (3,091 | ) | (5,301 | ) | (1,976 | ) | (3,092 | ) | (4,058 | ) | ||||||||||
Balance at End of Quarter | $ | 12,090 | $ | 14,171 | $ | 16,864 | $ | 17,881 | $ | 17,451 | ||||||||||
1 Excludes loans that are fully charged-off and placed on non-accrual status during the same period. | ||||||||||||||||||||
Bank of Hawai‘i Corporation and Subsidiaries | ||||||||||||
Reserve for Credit Losses | Table 12 | |||||||||||
Three Months Ended | ||||||||||||
(dollars in thousands) | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||
Balance at Beginning of Period | $ | 148,403 | $ | 150,051 | $ | 150,649 | ||||||
Loans and Leases Charged-Off | ||||||||||||
Commercial | ||||||||||||
Commercial and Industrial | (230 | ) | (1,331 | ) | (1,399 | ) | ||||||
Consumer | ||||||||||||
Residential Mortgage | (15 | ) | — | — | ||||||||
Home Equity | (6 | ) | (165 | ) | (75 | ) | ||||||
Automobile | (1,417 | ) | (1,654 | ) | (1,751 | ) | ||||||
Other | (2,394 | ) | (2,192 | ) | (2,484 | ) | ||||||
Total Loans and Leases Charged-Off | (4,062 | ) | (5,342 | ) | (5,709 | ) | ||||||
Recoveries on Loans and Leases Previously Charged-Off | ||||||||||||
Commercial | ||||||||||||
Commercial Mortgage | 1,617 | — | — | |||||||||
Commercial and Industrial | 53 | 92 | 77 | |||||||||
Consumer | ||||||||||||
Residential Mortgage | 11 | 11 | 11 | |||||||||
Home Equity | 137 | 88 | 128 | |||||||||
Automobile | 579 | 517 | 633 | |||||||||
Other | 590 | 486 | 457 | |||||||||
Total Recoveries on Loans and Leases | 2,987 | 1,194 | 1,306 | |||||||||
Net Charged-Off - Loans and Leases | (1,075 | ) | (4,148 | ) | (4,403 | ) | ||||||
Provision for Credit Losses: | ||||||||||||
Loans and Leases | 1,271 | 2,136 | 3,582 | |||||||||
Unfunded Commitments | 479 | 364 | (332 | ) | ||||||||
Total Provision for Credit Losses | 1,750 | 2,500 | 3,250 | |||||||||
Balance at End of Period | $ | 149,078 | $ | 148,403 | $ | 149,496 | ||||||
Components | ||||||||||||
Allowance for Credit Losses - Loans and Leases | $ | 146,962 | $ | 146,766 | $ | 147,707 | ||||||
Reserve for Unfunded Commitments | 2,116 | 1,637 | 1,789 | |||||||||
Total Reserve for Credit Losses | $ | 149,078 | $ | 148,403 | $ | 149,496 | ||||||
Average Loans and Leases Outstanding | $ | 14,083,875 | $ | 14,013,532 | $ | 14,062,173 | ||||||
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized) | 0.03 | % | 0.12 | % | 0.13 | % | ||||||
Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 1 | 1.04 | % | 1.04 | % | 1.05 | % | ||||||
1 The numerator comprises the Allowance for Credit Losses - Loans and Leases. | ||||||||||||
Bank of Hawai‘i Corporation and Subsidiaries | ||||||||||||||||||||
Selected Quarterly Financial Data | Table 13 | |||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(dollars in thousands, except per share amounts) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||
Quarterly Operating Results | ||||||||||||||||||||
Interest Income | ||||||||||||||||||||
Interest and Fees on Loans and Leases | $ | 164,469 | $ | 168,234 | $ | 169,411 | $ | 166,779 | $ | 163,082 | ||||||||||
Income on Investment Securities | ||||||||||||||||||||
Available-for-Sale | 34,575 | 32,950 | 29,702 | 27,007 | 24,368 | |||||||||||||||
Held-to-Maturity | 18,541 | 18,929 | 19,332 | 19,835 | 20,291 | |||||||||||||||
Cash and Cash Equivalents | 3,329 | 5,936 | 8,195 | 3,817 | 5,460 | |||||||||||||||
Other | 1,293 | 1,245 | 1,068 | 1,097 | 1,085 | |||||||||||||||
Total Interest Income | 222,207 | 227,294 | 227,708 | 218,535 | 214,286 | |||||||||||||||
Interest Expense | ||||||||||||||||||||
Deposits | 64,886 | 75,477 | 84,590 | 82,476 | 81,692 | |||||||||||||||
Securities Sold Under Agreements to Repurchase | 486 | 496 | 496 | 491 | 744 | |||||||||||||||
Other Debt | 5,845 | 5,947 | 5,947 | 5,885 | 6,043 | |||||||||||||||
Total Interest Expense | 71,217 | 81,920 | 91,033 | 88,852 | 88,479 | |||||||||||||||
Net Interest Income | 150,990 | 145,374 | 136,675 | 129,683 | 125,807 | |||||||||||||||
Provision for Credit Losses | 1,750 | 2,500 | 2,500 | 3,250 | 3,250 | |||||||||||||||
Net Interest Income After Provision for Credit Losses | 149,240 | 142,874 | 134,175 | 126,433 | 122,557 | |||||||||||||||
Noninterest Income | ||||||||||||||||||||
Trust and Asset Management | 12,445 | 12,883 | 12,598 | 12,097 | 11,741 | |||||||||||||||
Fees, Exchange, and Other Service Charges | 10,928 | 12,298 | 15,219 | 14,383 | 14,437 | |||||||||||||||
Service Charges on Deposit Accounts | 8,440 | 8,694 | 8,510 | 8,119 | 8,259 | |||||||||||||||
Bank-Owned Life Insurance | 4,147 | 3,758 | 3,681 | 3,714 | 3,611 | |||||||||||||||
Annuity and Insurance | 1,469 | 1,124 | 1,095 | 1,437 | 1,555 | |||||||||||||||
Mortgage Banking | 876 | 917 | 906 | 849 | 988 | |||||||||||||||
Investment Securities Losses, Net | (1,272 | ) | (18,717 | ) | (1,945 | ) | (1,126 | ) | (1,607 | ) | ||||||||||
Other | 4,299 | 23,314 | 5,902 | 5,322 | 5,074 | |||||||||||||||
Total Noninterest Income | 41,332 | 44,271 | 45,966 | 44,795 | 44,058 | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Salaries and Benefits | 68,457 | 61,675 | 62,905 | 61,308 | 62,884 | |||||||||||||||
Net Occupancy | 10,782 | 10,029 | 10,932 | 10,499 | 10,559 | |||||||||||||||
Net Equipment | 10,611 | 10,047 | 10,285 | 9,977 | 10,192 | |||||||||||||||
Data Processing | 5,581 | 5,659 | 5,603 | 5,456 | 5,267 | |||||||||||||||
Professional Fees | 4,226 | 3,682 | 4,022 | 4,263 | 4,264 | |||||||||||||||
FDIC Insurance | 2,719 | 2,378 | 3,508 | 3,640 | 1,642 | |||||||||||||||
Other | 13,695 | 16,048 | 15,132 | 15,640 | 15,651 | |||||||||||||||
Total Noninterest Expense | 116,071 | 109,518 | 112,387 | 110,783 | 110,459 | |||||||||||||||
Income Before Provision for Income Taxes | 74,501 | 77,627 | 67,754 | 60,445 | 56,156 | |||||||||||||||
Provision for Income Taxes | 17,069 | 16,692 | 14,409 | 12,808 | 12,171 | |||||||||||||||
Net Income | $ | 57,432 | $ | 60,935 | $ | 53,345 | $ | 47,637 | $ | 43,985 | ||||||||||
Preferred Stock Dividends | 5,269 | 5,269 | 5,269 | 5,269 | 5,269 | |||||||||||||||
Net Income Available to Common Shareholders | $ | 52,163 | $ | 55,666 | $ | 48,076 | $ | 42,368 | $ | 38,716 | ||||||||||
Basic Earnings Per Common Share | $ | 1.32 | $ | 1.40 | $ | 1.21 | $ | 1.07 | $ | 0.98 | ||||||||||
Diluted Earnings Per Common Share | $ | 1.30 | $ | 1.39 | $ | 1.20 | $ | 1.06 | $ | 0.97 | ||||||||||
Balance Sheet Totals | ||||||||||||||||||||
Loans and Leases | $ | 14,192,811 | $ | 14,082,050 | $ | 14,021,579 | $ | 14,002,178 | $ | 14,115,323 | ||||||||||
Total Assets | 23,909,933 | 24,176,364 | 24,014,609 | 23,709,752 | 23,885,056 | |||||||||||||||
Total Deposits | 20,957,930 | 21,188,495 | 21,080,669 | 20,798,914 | 21,008,217 | |||||||||||||||
Total Shareholders' Equity | 1,854,563 | 1,851,212 | 1,791,183 | 1,743,107 | 1,704,935 | |||||||||||||||
Performance Ratios | ||||||||||||||||||||
Return on Average Assets | 0.97 | % | 1.01 | % | 0.88 | % | 0.81 | % | 0.75 | % | ||||||||||
Return on Average Shareholders' Equity | 12.47 | 13.33 | 12.10 | 11.21 | 10.65 | |||||||||||||||
Return on Average Common Equity | 13.90 | 15.03 | 13.59 | 12.50 | 11.80 | |||||||||||||||
Efficiency Ratio 1 | 60.35 | 57.75 | 61.53 | 63.49 | 65.03 | |||||||||||||||
Net Interest Margin 2 | 2.74 | 2.61 | 2.46 | 2.39 | 2.32 | |||||||||||||||
1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income). | ||||||||||||||||||||
Bank of Hawai‘i Corporation and Subsidiaries | |||||||||||||||||
Hawaii Economic Trends | Table 14 | ||||||||||||||||
Year Ended | |||||||||||||||||
(dollars in millions, jobs in thousands, 1-year percentage change) | December 31, 2025 | December 31, 2024 | |||||||||||||||
Hawaii Economic Trends | |||||||||||||||||
General Excise and Use Tax Revenue 1 | 889.1 | 4.1 | % | 4,773.4 | 6.2 | % | 4,495.0 | 0.5 | % | ||||||||
Jobs 2 | 672.7 | 672.9 | 669.0 | ||||||||||||||
January 31, | December 31, | ||||||||||||||||
2026 | 2025 | 2024 | |||||||||||||||
Unemployment, seasonally adjusted 2 | |||||||||||||||||
Statewide | 2.6 | % | 2.6 | % | 3.0 | % | |||||||||||
Honolulu County | 2.6 | 2.5 | 2.9 | ||||||||||||||
Hawaii County | 2.9 | 3.1 | 3.5 | ||||||||||||||
Maui County | 2.9 | 2.9 | 3.6 | ||||||||||||||
Kauai County | 2.0 | 2.7 | 3.0 | ||||||||||||||
February 28, | December 31, | ||||||||||||||||
(1-year percentage change, except months of inventory) | 2026 | 2025 | 2024 | 2023 | |||||||||||||
Housing Trends (Single Family Oahu) 3 | |||||||||||||||||
Median Home Price | 0.9 | % | 3.5 | % | 4.8 | % | (5.0 | )% | |||||||||
Home Sales Volume (units) | 2.2 | % | 3.5 | % | 9.1 | % | (26.3 | )% | |||||||||
Months of Inventory | 2.8 | 2.6 | 2.9 | 2.8 | |||||||||||||
(in thousands, except percentage change) | Monthly Visitor Arrivals, | Percentage Change | |||
Tourism 4 | |||||
February 28, 2026 | 760.8 | 2.9 | % | ||
January 31, 2026 | 858.7 | 11.1 | |||
December 31, 2025 | 850.3 | (4.4 | ) | ||
November 30, 2025 | 728.1 | (3.7 | ) | ||
October 31, 2025 | 727.2 | (1.2 | ) | ||
September 30, 2025 | 674.9 | (2.2 | ) | ||
August 31, 2025 | 806.8 | (2.6 | ) | ||
July 31, 2025 | 870.8 | (4.6 | ) | ||
June 30, 2025 | 855.7 | (1.9 | ) | ||
May 31, 2025 | 766.4 | 1.1 | |||
April 30, 2025 | 810.3 | 9.4 | |||
March 31, 2025 | 890.0 | 2.8 | |||
February 28, 2025 | 739.7 | (1.7 | ) | ||
January 31, 2025 | 773.1 | 3.7 | |||
December 31, 2024 | 889.6 | 5.0 | |||
November 30, 2024 | 755.8 | 4.8 | |||
October 31, 2024 | 736.1 | 5.1 | |||
September 30, 2024 | 690.2 | 6.5 | |||
August 31, 2024 | 828.3 | 8.1 | |||
July 31, 2024 | 912.8 | (1.9 | ) | ||
June 30, 2024 | 872.6 | (1.5 | ) | ||
May 31, 2024 | 757.8 | (4.1 | ) | ||
April 30, 2024 | 740.7 | (8.1 | ) | ||
March 31, 2024 | 865.8 | (3.0 | ) | ||
February 29, 2024 | 752.7 | 2.6 | |||
1 Source: Hawaii Department of Business, Economic Development & Tourism. Based on the latest complete available data for February 2026. | |||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20260420410662/en/
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