Bank of Hawaii Corporation (NYSE: BOH) announced today that it has officially resumed its share repurchase program, signaling strong confidence in its capital position following a blockbuster fourth quarter.
During the final three months of 2025, the bank repurchased 76,500 shares of common stock at a total cost of $5.0 million. This move marks the return of capital to shareholders through buybacks, supported by a significant jump in profitability and the successful execution of the bank’s “remixing” strategy.
Capital Strength Fuels Buybacks
The decision to resume repurchases comes as the bank’s Tier 1 Capital Ratio climbed to 14.49%, up from 14.34% in the previous quarter. As of December 31, 2025, the bank still has $121.0 million remaining in its buyback authority, suggesting the potential for continued activity into 2026. In addition to the buybacks, the Board of Directors maintained its commitment to direct dividends, declaring a quarterly cash dividend of $0.70 per share, payable on March 13, 2026.
“Bank of Hawaii completed 2025 with strong financial performance,” said Peter Ho, Chairman and CEO. “We continued to deliver consistent growth in net interest income and margin for the seventh consecutive quarter, while remaining disciplined in managing expenses.”
The resumption of share repurchases was underpinned by financial metrics that exceeded analyst expectations:
Net Income: $60.9 million, a 55.6% increase year-over-year.
Earnings Per Share (EPS): $1.39, handily beating the $0.85 reported in Q4 2024.
Net Interest Margin (NIM): Rose to 2.61%, a 15-basis-point improvement over the previous quarter.
Asset Quality: Non-performing assets dropped to just 0.10% of total loans, one of the lowest levels in the industry.
Strategic Portfolio Sale
The quarter was also marked by a strategic shift, as the bank completed the sale of its merchant services portfolio. This transaction resulted in an $18.1 million gain, further bolstering the bank’s liquidity and allowing it to focus on core banking and trust services in the Hawaii and West Pacific markets.