Bank of Hawai‘i Corporation (BOH) Q3 2026: Earnings Growth with Increased Share Buyback — Positive Outlook

Bank of Hawai‘i Corporation (NYSE: BOH) reported its third-quarter financial results for 2026, showcasing a modest increase in earnings and a robust share repurchase program. The company achieved diluted earnings per common share of $1.49, reflecting an increase of $0.02 or 1.4% from the previous quarter's earnings of $1.47. Net income for the quarter was $64.3 million, up 0.7% from the linked quarter.

Key Financial Metrics:

• Diluted Earnings Per Share: $1.49 (up $0.02 or +1.4% QoQ)
• Net Income: $64.3 million (up $0.4 million or +0.7% QoQ)
• Net Interest Margin: 2.82% (up 4 basis points QoQ)
• Net Interest Income: $156.1 million (up 1.6% QoQ)
• Noninterest Income: $42.7 million (down 1.4% QoQ)
• Noninterest Expense: $112.3 million (up 1.0% QoQ)
• Return on Average Common Equity: 15.38% (down from 15.47% QoQ)
• Share Repurchases: $20.2 million
• Increased Share Repurchase Program: Up by $200 million to $268.7 million
• Quarterly Cash Dividend: $0.70 per share, payable on December 14, 2026

Analyst View:

This quarter's performance can be viewed positively for shareholders. The slight increase in earnings per share and net income indicates that the company is maintaining its profitability amidst a challenging economic environment. The increase in net interest margin for the tenth consecutive quarter is particularly noteworthy, as it reflects effective asset repricing strategies that are benefiting the company's bottom line.

However, the decline in noninterest income by 1.4% and the increase in noninterest expenses by 1.0% suggest that while the bank is managing its interest income well, it faces challenges in other revenue streams and cost management. The increase in share buyback authorization to $268.7 million is a strong signal of confidence from management, indicating they believe the stock is undervalued and are committed to returning capital to shareholders.

Dividend and Share Buyback:

The Board of Directors declared a quarterly cash dividend of $0.70 per share, which will be payable on December 14, 2026, to shareholders of record as of November 30, 2026. Additionally, the company repurchased 256 thousand shares at a total cost of $20.2 million during the quarter, and the share repurchase program has been increased by $200 million, reflecting a strong commitment to enhancing shareholder value.

Forward-Looking Catalysts:

Investors should keep an eye on the upcoming quarters for further developments in loan growth and asset quality. The bank's ability to maintain or improve its net interest margin will be crucial, especially as interest rates fluctuate. Additionally, any updates on the effectiveness of the expanded share repurchase program and its impact on earnings per share will be significant for shareholder sentiment. The management's focus on expense discipline will also be a key factor to watch as they navigate the current economic landscape.

In conclusion, while there are areas of concern, the overall performance this quarter is a positive sign for Bank of Hawai‘i Corporation and its shareholders, with a solid foundation for future growth.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025
Interest income	$ 156,128	$ 153,005	$ 150,000	$ 147,000	$ 140,000
Interest expense	$ 46,499	$ 43,833	$ 42,199	$ 40,000	$ 37,000
Net interest income	$ 109,629	$ 109,172	$ 107,801	$ 107,000	$ 103,000
Noninterest income	$ 42,700	$ 43,267	$ 40,000	$ 38,000	$ 40,000
Total revenue	$ 152,329	$ 152,439	$ 147,801	$ 145,000	$ 143,000
Noninterest expense	$ 112,345	$ 111,071	$ 110,000	$ 109,000	$ 108,000
Income before taxes	$ 39,984	$ 41,368	$ 37,801	$ 36,000	$ 35,000
Provision for income taxes	$ 9,300	$ 9,261	$ 8,701	$ 7,500	$ 7,500
Net income	$ 30,684	$ 32,107	$ 29,100	$ 28,500	$ 27,500
Diluted earnings per common share	$ 1.49	$ 1.47	$ 1.39	$ 1.38	$ 1.41

CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)

Assets	Sep 30, 2026	Jun 30, 2026	Dec 31, 2025	Sep 30, 2025
Cash and cash equivalents	$ 442,000	$ 452,814	$ 946,523	$ 985,223
Investment securities, available-for-sale	$ 3,523,000	$ 3,618,000	$ 3,510,000	$ 3,280,000
Loans and leases, net	$ 14,221,000	$ 14,139,000	$ 13,920,000	$ 13,872,000
Premises and equipment, net	$ 224,200	$ 223,463	$ 199,732	$ 196,093
Total assets	$ 23,813,000	$ 23,842,000	$ 24,174,000	$ 24,014,000
Deposits	$ 20,487,000	$ 20,892,000	$ 21,182,000	$ 21,080,000
Total liabilities	$ 21,996,000	$ 21,967,000	$ 22,320,000	$ 22,223,000
Total shareholders' equity	$ 1,817,000	$ 1,875,000	$ 1,851,000	$ 1,791,000
Total liabilities and shareholders' equity	$ 23,813,000	$ 23,842,000	$ 24,174,000	$ 24,014,000

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