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Bank of Hawaii Q3 Earnings Beat on Strong NII, Provisions Decline Y/Y
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Key Takeaways
{\"0\":\"Bank of Hawaii posted Q3 EPS of $1.20, topping estimates and rising from 93 cents a year earlier.\\r\\n\",\"1\":\"Higher NII and fee income, along with loan and deposit growth, drove revenue up 12.2% year over year.\",\"2\":\"Credit quality improved as non-performing assets fell 14.7% and provisions dropped 16.7% from last year.\\r\\n\"}
Bank of Hawaii Corporation (BOH - Free Report) reported third-quarter 2025 earnings per share (EPS) of $1.20, which beat the Zacks Consensus Estimate of $1.13. The bottom line compared favorably with 93 cents in the year-ago quarter.
BOH’s results benefited from the increase in net interest income (NII) and strong fee income growth. Also, higher loan and deposit balances, along with lower provisions, were encouraging. However, an increase in expenses acted as a key spoilsport.
The company’s net income (GAAP basis) came in at $53.3 million, up 32.2% year over year.
Bank of Hawaii’s Quarterly Revenues & Expenses Rise
BOH’s quarterly revenues increased 12.2% year over year to $182.6 million. The top line surpassed the Zacks Consensus Estimate by 3.7%.
NII was $136.7 million, up 16.2% year over year. NIM increased 28 basis points to 2.46%. Our estimate for NII and NIM was pegged at $126.4 million and 2.49%, respectively.
Non-interest income came in at $45.9 million, up 1.9% year over year. This included a $0.8 million charge incurred in connection with a change in the Visa Class B conversion ratio. Adjusted for these items, non-interest income increased 3.4% year over year. This rise was primarily driven by an increase in fees, exchange and other service charges, higher trust and asset management, service charges on deposit accounts, bank-owned life insurance income, and other income. Our estimate for the metric was pinned at $44.5 million.
Non-interest expenses rose 4.9% year over year to $112.4 million. It included a severance-related charge of $2.1 million. Adjusted for these items, non-interest expense increased 3% from adjusted non-interest expenses recorded in the year-ago quarter. The increase was primarily due to higher salaries and benefits, partially offset by lower professional fees. Our estimate for the metric was pinned at $107.9 million.
The efficiency ratio was 61.53%, down from 65.81% in the year-ago period. A fall in the efficiency ratio reflects increased profitability.
BOH’s Loans & Deposits Increase
As of Sept. 30, 2025, total loans and leases increased slightly from the prior-quarter end to $14 billion. Our estimate for total loans and leases was $11.9 billion.
Total deposits moved up 1.3% on a sequential basis to $21.1 billion. Our estimate for total deposits was $18.9 billion.
Bank of Hawaii’s Credit Quality Improves
As of Sept. 30, 2025, non-performing assets were $16.9 million, which declined 14.7% year over year. Our estimate for the metric was $21.3 million.
Net loans and lease charge-offs were $2.6 million, down $1.2 million from the year-ago quarter. Our estimate for the metric was $2.3 million.
Provision for credit losses was $2.5 million, down 16.7% from the year-ago quarter. Our estimate for the metric was $3.4 million.
The allowance for credit losses rose marginally to $148.8 million. Our estimate for the metric was $149.7 million.
BOH’s Capital Ratios Improve
As of Sept. 30, 2025, the Tier 1 capital ratio was 14.34%, up from 14.05% as of Sept. 30, 2024. The total capital ratio was 15.40%, which rose from 15.11% in the year-ago period.
The ratio of tangible common equity to risk-weighted assets was 9.95%, which increased from 9.17% at the end of the year-ago quarter.
Bank of Hawaii’s Profitability Ratios Improve
Return on average assets was 0.88% at the end of the third quarter of 2025, which increased from 0.69% in the prior-year quarter. Return on average shareholders' equity was 12.10%, up from 9.90% as of Sept. 30, 2024.
BOH's Share Repurchase Update
In the reported quarter, Bank of Hawaii did not repurchase any shares. As of Sept. 30, 2025, the total remaining buyback authority under the share repurchase program was $126 million.
Our View on Bank of Hawaii
A rise in NII and fee income will support top-line growth. A solid capital position was another positive. Further, higher loan and deposit balances strengthen its balance sheet. However, rising expenses continue to weigh on overall performance.
Bank of Hawaii Corporation Price, Consensus and EPS Surprise
Synovus Financial Corp.'s (SNV - Free Report) third-quarter 2025 adjusted earnings per share of $1.46 surpassed the Zacks Consensus Estimate of $1.36 per share. This compares favorably with earnings of $1.23 per share a year ago.
SNV’s results benefited from strong year-over-year growth in NII and non-interest revenues, along with a fall in provisions for credit losses. Also, improving loan balances was a tailwind. However, an increase in expenses was a major headwind.
First Horizon Corporation’s (FHN - Free Report) third-quarter 2025 adjusted earnings per share (excluding notable items) of 51 cents surpassed the Zacks Consensus Estimate of 45 cents. This compares favorably with 42 cents in the year-ago quarter.
Results benefited from a rise in NII and non-interest income, along with provision benefits. However, a decline in loan and deposit balances acted as a headwind for FHN.
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Bank of Hawaii Q3 Earnings Beat on Strong NII, Provisions Decline Y/Y
Key Takeaways
Bank of Hawaii Corporation (BOH - Free Report) reported third-quarter 2025 earnings per share (EPS) of $1.20, which beat the Zacks Consensus Estimate of $1.13. The bottom line compared favorably with 93 cents in the year-ago quarter.
BOH’s results benefited from the increase in net interest income (NII) and strong fee income growth. Also, higher loan and deposit balances, along with lower provisions, were encouraging. However, an increase in expenses acted as a key spoilsport.
The company’s net income (GAAP basis) came in at $53.3 million, up 32.2% year over year.
Bank of Hawaii’s Quarterly Revenues & Expenses Rise
BOH’s quarterly revenues increased 12.2% year over year to $182.6 million. The top line surpassed the Zacks Consensus Estimate by 3.7%.
NII was $136.7 million, up 16.2% year over year. NIM increased 28 basis points to 2.46%. Our estimate for NII and NIM was pegged at $126.4 million and 2.49%, respectively.
Non-interest income came in at $45.9 million, up 1.9% year over year. This included a $0.8 million charge incurred in connection with a change in the Visa Class B conversion ratio. Adjusted for these items, non-interest income increased 3.4% year over year. This rise was primarily driven by an increase in fees, exchange and other service charges, higher trust and asset management, service charges on deposit accounts, bank-owned life insurance income, and other income. Our estimate for the metric was pinned at $44.5 million.
Non-interest expenses rose 4.9% year over year to $112.4 million. It included a severance-related charge of $2.1 million. Adjusted for these items, non-interest expense increased 3% from adjusted non-interest expenses recorded in the year-ago quarter. The increase was primarily due to higher salaries and benefits, partially offset by lower professional fees. Our estimate for the metric was pinned at $107.9 million.
The efficiency ratio was 61.53%, down from 65.81% in the year-ago period. A fall in the efficiency ratio reflects increased profitability.
BOH’s Loans & Deposits Increase
As of Sept. 30, 2025, total loans and leases increased slightly from the prior-quarter end to $14 billion. Our estimate for total loans and leases was $11.9 billion.
Total deposits moved up 1.3% on a sequential basis to $21.1 billion. Our estimate for total deposits was $18.9 billion.
Bank of Hawaii’s Credit Quality Improves
As of Sept. 30, 2025, non-performing assets were $16.9 million, which declined 14.7% year over year. Our estimate for the metric was $21.3 million.
Net loans and lease charge-offs were $2.6 million, down $1.2 million from the year-ago quarter. Our estimate for the metric was $2.3 million.
Provision for credit losses was $2.5 million, down 16.7% from the year-ago quarter. Our estimate for the metric was $3.4 million.
The allowance for credit losses rose marginally to $148.8 million. Our estimate for the metric was $149.7 million.
BOH’s Capital Ratios Improve
As of Sept. 30, 2025, the Tier 1 capital ratio was 14.34%, up from 14.05% as of Sept. 30, 2024. The total capital ratio was 15.40%, which rose from 15.11% in the year-ago period.
The ratio of tangible common equity to risk-weighted assets was 9.95%, which increased from 9.17% at the end of the year-ago quarter.
Bank of Hawaii’s Profitability Ratios Improve
Return on average assets was 0.88% at the end of the third quarter of 2025, which increased from 0.69% in the prior-year quarter. Return on average shareholders' equity was 12.10%, up from 9.90% as of Sept. 30, 2024.
BOH's Share Repurchase Update
In the reported quarter, Bank of Hawaii did not repurchase any shares. As of Sept. 30, 2025, the total remaining buyback authority under the share repurchase program was $126 million.
Our View on Bank of Hawaii
A rise in NII and fee income will support top-line growth. A solid capital position was another positive. Further, higher loan and deposit balances strengthen its balance sheet. However, rising expenses continue to weigh on overall performance.
Bank of Hawaii Corporation Price, Consensus and EPS Surprise
Bank of Hawaii Corporation price-consensus-eps-surprise-chart | Bank of Hawaii Corporation Quote
Currently, BOH carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Banks
Synovus Financial Corp.'s (SNV - Free Report) third-quarter 2025 adjusted earnings per share of $1.46 surpassed the Zacks Consensus Estimate of $1.36 per share. This compares favorably with earnings of $1.23 per share a year ago.
SNV’s results benefited from strong year-over-year growth in NII and non-interest revenues, along with a fall in provisions for credit losses. Also, improving loan balances was a tailwind. However, an increase in expenses was a major headwind.
First Horizon Corporation’s (FHN - Free Report) third-quarter 2025 adjusted earnings per share (excluding notable items) of 51 cents surpassed the Zacks Consensus Estimate of 45 cents. This compares favorably with 42 cents in the year-ago quarter.
Results benefited from a rise in NII and non-interest income, along with provision benefits. However, a decline in loan and deposit balances acted as a headwind for FHN.