Bank of Hawaii Corp (NYSE:BOH) Q3 2025 Earnings: EPS Beats Estimates, Revenue In Line

Bank of Hawaii Corp (NYSE:BOH) reported third-quarter financial results that demonstrated solid operational performance, with earnings per share surpassing analyst expectations while revenue came in roughly in line with projections. The regional bank's results highlight continued net interest margin expansion and disciplined expense management against a backdrop of stable credit quality.

Earnings and Revenue Performance

The company's Q3 2025 results revealed a mixed performance relative to analyst expectations. Bank of Hawaii reported diluted earnings per share of $1.20, exceeding the consensus estimate of $1.19. This represents a significant improvement from the $0.93 reported in the same quarter last year and $1.06 in the previous quarter.

Revenue performance told a slightly different story, with the bank posting $182.6 million in sales for the quarter. While this figure represented a 12.2% increase compared to the same period last year, it narrowly missed analyst expectations of $182.8 million.

Key financial metrics from the quarter include:

• Net income of $53.3 million, up 32.2% year-over-year
• Return on average common equity of 13.59%, improving from 11.50% a year ago
• Net interest income of $136.7 million, increasing 16.2% from the prior year
• Net interest margin of 2.46%, expanding 28 basis points year-over-year

Market Reaction and Price Action

Following the earnings release, Bank of Hawaii shares showed modest positive momentum in pre-market trading, suggesting investors responded favorably to the earnings beat and improved profitability metrics. The stock has demonstrated varied performance across different timeframes, with recent strength potentially reflecting anticipation of solid quarterly results.

The market's reaction appears to acknowledge the quality of the earnings beat despite the slight revenue miss, with investors likely focusing on the bank's expanding net interest margin and improved returns on equity.

Operational Highlights

Bank of Hawaii delivered what Chairman and CEO Peter Ho characterized as "another quarter of solid results," marking the sixth consecutive quarter of net interest income and margin expansion. The company achieved this through a combination of deposit growth, higher earning asset yields, and effective management of interest-bearing deposit costs.

Credit quality remained exceptionally strong, with non-performing assets declining to $16.9 million, representing just 0.12% of total loans and leases. The provision for credit losses decreased to $2.5 million, reflecting the stable asset quality environment.

The balance sheet showed modest growth, with total assets reaching $24.0 billion and total deposits increasing to $21.1 billion. Loan growth was tempered, with total loans and leases edging up just 0.1% from the previous quarter, though commercial loans showed healthier year-over-year growth of 2.8%.

Capital and Shareholder Returns

Bank of Hawaii maintained strong capital levels, with a Tier 1 Capital Ratio of 14.34%, well above regulatory requirements. The company continued its commitment to returning capital to shareholders, declaring a quarterly cash dividend of $0.70 per common share.

Notably, the bank did not repurchase any shares during the quarter despite having $126.0 million remaining in its buyback authorization, potentially preserving flexibility for future capital deployment.

Forward Outlook

While the earnings release did not provide specific forward-looking financial guidance, the company's performance trends and analyst estimates suggest continued stability. Analysts project Q4 2025 revenue of approximately $185.3 million with earnings per share estimated at $1.23.

For more detailed earnings analysis and future estimates, readers can review additional information on the company's earnings page.

Disclaimer: This article presents financial data and market reactions for informational purposes only and does not constitute investment advice or recommendations. Readers should conduct their own research and consult with financial advisors before making investment decisions.