Q4 2025 Bank of Hawaii Corp Earnings Call Transcript
Key Points
- Bank of Hawaii Corp (BOH) reported a strong increase in fully diluted earnings per share, up 63% year-over-year and 16% from the previous quarter.
- Net interest margin improved for the seventh consecutive quarter, reaching 2.61%, with expectations to reach 2.90% by the end of 2026.
- Noninterest-bearing demand deposits grew by 6.6% on a linked basis, indicating strong deposit growth.
- The company maintained a pristine credit quality with low nonperforming assets and a diversified loan portfolio.
- Bank of Hawaii Corp (BOH) has a strong market position in Hawaii, with a 125-year history and a leading deposit market share.
- Noninterest income decreased slightly to $44.3 million from $46 million in the previous quarter, impacted by nonrecurring items.
- The allowance for credit losses on loans and leases decreased, with the ACL ratio dropping to 1.04%, which could indicate potential risk if economic conditions worsen.
- Loan growth was relatively flat year-over-year, with expectations for only low single-digit growth in the near term.
- The cost of interest-bearing liabilities remains a concern, although it improved by 19 basis points in the quarter.
- There was a modest increase in delinquencies and criticized loans, which could signal emerging credit risks.
Good day, and thank you for standing by. Welcome to the Bank of Hawaii Corporation fourth-quarter 2025 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Chang Park. Please go ahead.
Good morning, and good afternoon. Thank you for joining us today for our fourth-quarter 2025 earnings call. Joining me today is our Chairman and CEO, Peter Ho; President and Chief Banking Officer, Jim Polk; CFO, Brad Satenberg; and Chief Risk Officer, Brad Shairson.
Before we get started, I want to remind you that today's conference call will contain some forward-looking statements. And while we believe our assumptions are reasonable, the actual results may differ materially from those projected. During the call today, we'll be referencing a slide presentation as well as our earnings release. Both of these are available on our website, boh.com, under the Investor
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