BOH

BANK OF HAWAII CORP

Financial Services | Mid Cap

$1.40

EPS Forecast

$194.9

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2026-07-16

Bank of Hawai‘i (BOH) Q1 2026 Earnings: A Delicate Margin in a Rate-Driven World

Ticker: BOH. In its first quarter 2026 release, the Bank of Hawai‘i reports an EPS of $1.30 and net income of $57.4 million, with earnings per share down from the prior quarter. No explicit EPS consensus or revenue forecast is published in the filing, leaving room for the market to interpret possible earnings surprise vs. street expectations.

Headline numbers you can chew on

  • EPS: $1.30 for Q1 2026, down from $1.39 in the linked quarter.
  • Net income: $57.4 million, a 5.7% decrease versus the prior quarter.
  • Return on average common equity (ROE): 13.90% (vs. 15.03% in the linked quarter).
  • Net interest income: $151.0 million, up 3.9% quarter-over-quarter.
  • Net interest margin (NIM): 2.74%, up 13 basis points from the linked quarter.
  • Yield on earning assets: 4.03% (total); yield on loans and leases 4.75%, each down a few basis points vs. the linked quarter.
  • Deposit costs: average interest-bearing deposits at 1.72%; total deposits at 1.26% (quarterly average).
  • Deposit beta: 36% in the downward-rate cycle as of Q1 2026.
  • Noninterest income: $41.3 million, down 6.6% from the linked quarter; notable items include a $0.2 million Visa charge in Q1 vs. a $18.1 million gain, $16.8 million loss on investments, and $0.8 million Visa charge in the linked quarter.

The rate machine: what moved the margins

The quarter’s dynamics hinge on a rate backdrop shaped by late-2025 FOMC cuts. The decline in deposit costs—notably a 22 basis point drop in interest-bearing deposit rates—helped lift the NIM by 13 basis points, even as earning asset yields slipped modestly. In plain English: cheaper money from deposits did lift margins, but the price of loans and other earning assets didn’t reprice as aggressively, tempering the potential upside.

The deposit beta of 36% signals a partial pass-through of rate moves into funding costs. In a world where the Fed tinkers with rates, banks like BOH are walking a narrow line: cut rates to preserve loan pricing power, but avoid a cascade of deposit-cost reductions that would erode NIM.

Noninterest income in the spotlight

Noninterest income came in at $41.3 million, down 6.6% sequentially. The quarter’s numbers were noisier than a merchant services portfolio pitch session: Q1 included a $0.2 million Visa Class B share conversion charge, while the prior quarter benefited from a roughly $18.1 million gain on the sale of merchant services assets and a $16.8 million loss on investments, plus a $0.8 million Visa charge. Excluding these items, noninterest income would have declined about 5.1% from the linked quarter.

What it portends for BOH and peers

The results reinforce a familiar theme for mid-sized regional banks: in a rate-down regime, margin resilience hinges on funding costs and asset repricing dynamics more than on one-off noninterest items. BOH’s NIM uplift came from cheaper deposits, but its loans and other earning assets showed only modest repricing, suggesting limited cushion if rates trend lower for longer. The absence of a formal revenue forecast or EPS consensus in the release means investors will lean on ongoing commentary and quarterly cadence to gauge trajectory—an environment where EPS and earnings surprise will be driven by both net interest income momentum and the durability of noninterest income sources.

Sector peers with similar deposit bases and asset mixes may watch BOH’s experience as a proxy for how sensitive regional banks are to rate cuts and how effectively they can defend NIM through cost management. A 36% deposit beta is not a disaster, but it’s a reminder that the pass-through of rate moves is probabilistic, not automatic.

Bottom line: interpretive take

BOH delivered a respectable first quarter in a tricky rate environment, with a modest EPS of $1.30 and a lean balance-sheet narrative that leverages deposit-cost relief to buoy margins. The absence of explicit EPS consensus and revenue forecast in the filing leaves a gap for the market to fill with external estimates, making the upcoming quarter a test of whether margin resilience or noninterest income normalization dominates the narrative.

For investors tracking revenue forecasts and earnings surprises, BOH will need to sustain or accelerate net interest income and stabilize or grow noninterest income once the legacy portfolio moves settle. If the rate environment stays partially accommodative and deposit betas remain modest, the sector could see a steady-but-not-spectacular re-pricing of risk across regional banks. If, however, a sharper rate path or a churn in merchant-services gains arrives, the dispersion in earnings results across peers may widen, subtly reweighting which banks win from the rate ladder and which banks get rung by it.

Source: Bank of Hawai‘i Corporation, Q1 2026 Earnings Release (NYSE: BOH). This summary reflects disclosed metrics: EPS, net income, ROE, NIM, yields, deposit costs, deposit beta, and noninterest income components as reported. No forward-looking revenue forecast or published EPS consensus was provided in the release.