Bank of Hawai‘i Corporation (NYSE: BOH) today reported diluted earnings per common share of $4.63 for the full year of 2025, compared with $3.46 for the full year of 2024. Net income for the year was $205.9 million, up 37.3% from the previous year. The return on average common equity for the full year of 2025 was 13.29% compared with 10.85% in 2024.
Diluted earnings per common share was $1.39 for the fourth quarter of 2025, compared with $1.20 during the linked quarter and $0.85 during the same period last year. Net income for the fourth quarter of 2025 was $60.9 million, up 14.2% from the linked quarter and up 55.6% from the same period last year. The return on average common equity for the fourth quarter of 2025 was 15.03% compared with 13.59% during the linked quarter and 10.30% during the same period last year.
During the Fourth Quarter 2025 earnings call held on January 26, 2026, Chairman and CEO Peter Ho, along with the executive team, provided a forward-looking roadmap for 2026. The overall sentiment was one of “disciplined optimism,” focusing on margin expansion and capital management.
Net Interest Margin (NIM) Expansion
Ho highlighted that the bank has achieved seven consecutive quarters of NIM growth. For 2026, he indicated:
Target Range
A NIM of 2.50% is considered a “reasonable target” and well within range if current trends in deposit stability hold.
Rate Cut Sensitivity
Interestingly, management noted that further Federal Reserve rate cuts could be accretive to the bank’s margin in the long term, as high-cost time deposits reprice lower.
Loan Growth & Credit Quality
Despite some broader economic uncertainty in the islands, the outlook for the loan portfolio remains steady:
Growth Guidance
The bank is maintaining a low single-digit growth outlook for 2026.
Pipeline
This is supported by a “solid commercial pipeline” and a recent uptick in consumer mortgage and HELOC (Home Equity Line of Credit) applications.
Credit Health
Asset quality remains a “bright spot,” with non-performing assets at near-historic lows (0.10%). Ho emphasized that the bank’s conservative underwriting—particularly in Commercial Real Estate, leaves them well-positioned for any market volatility.
Strategic “Remixing” & Expenses
Merchant Services Exit: Following the sale of the merchant services portfolio in Q4, the bank enters 2026 with a leaner, more focused business model.
Efficiency
Management is targeting improved efficiency ratios through continued “expense discipline,” even as they invest in technological innovation.
Leadership Transition
A significant update for the 2026 outlook is a change in the C-suite:
CFO Retirement: Longtime CFO Dean Shigemura is set to retire on June 30, 2026.
Succession: Brad Satenberg has been named as his successor, ensuring a planned and stable transition during the mid-year.