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Bank of Hawaii reports 13% diluted EPS growth in Q2 2026
The bank said it expanded its net interest margin for a ninth straight quarter and projected a near-2.9% NIM by year-end 2026, assuming a 25-basis-point rate hike in mid-September.
Bank of Hawaii Corporation reported a 13% increase in diluted EPS in Q2 2026, driven by improved earnings power and a return on average common equity of 15.5%, according to a Yahoo Finance earnings call summary.
The bank said it achieved its ninth consecutive quarter of net interest margin expansion, citing ongoing repricing of fixed-rate assets and disciplined deposit pricing. Loan growth rose 2.6% annualized in the quarter, led by C&I lending and residential lending, with residential growth supported by the closing of a large condominium project.
On deposits, Bank of Hawaii said its non-interest-bearing deposit share held at a stable 27% of the total mix despite seasonal outflows. It also reported that wealth management growth was driven by favorable market conditions and new production, including trust fees and its Cetera partnership.
Looking ahead, management targeted net interest margin approaching 2.9% by year-end 2026, assuming one 25-basis-point rate hike in mid-September. The bank projected full-year loan growth in the lower mid-single digit range, expected consumer growth to moderate in Q3 after completion of major residential projects, and planned $20 million in share repurchases across the third and fourth quarters of 2026.