Bank of Hawaii reports Q2 earnings above estimates, net income up 40% YoY

Published 28/07/2025, 12:00
 Bank of Hawaii reports Q2 earnings above estimates, net income up 40% YoY

HONOLULU - On Monday, Bank of Hawaii Corporation (NYSE:BOH) reported second quarter 2025 diluted earnings per share of $1.06, slightly above analyst estimates of $1.05, as the bank continued to benefit from expanding net interest income and margin.

The company’s shares were unchanged in pre-market trading following the release.

Net income for the quarter reached $47.6 million, representing a significant 39.8% increase compared to the same period last year and an 8.3% improvement from the first quarter of 2025. The bank’s return on average common equity rose to 12.50% from 10.41% a year earlier.

"Bank of Hawai’i continued to perform well during the second quarter of 2025," said Peter Ho, Chairman and CEO. "Our net interest income and net interest margin expanded for the fifth consecutive quarter. Average deposit balances grew while average loan balances held steady."

Net interest income grew to $129.7 million, up 12.9% YoY and 3.1% from the previous quarter. The improvement was primarily driven by higher earning asset yields as fixed rate assets rolled off at lower interest rates and were reinvested at higher current rates. Net interest margin expanded to 2.39%, an increase of 24 basis points from the same period last year.

Total (EPA:TTEF) deposits were $20.8 billion at quarter-end, a decrease of 1.0% from the first quarter but up 1.9% from June 30, 2024. Average total deposits increased slightly by 0.1% from the linked quarter and by 1.7% YoY.

The bank’s asset quality remained strong with non-performing assets at $17.9 million, representing just 0.13% of total loans and leases. The allowance for credit losses on loans and leases was $148.5 million, or 1.06% of total loans outstanding.

The Board of Directors declared a quarterly cash dividend of $0.70 per share, payable on September 15, 2025, to shareholders of record as of August 29, 2025.

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