Q2 2026 Bank of Hawaii Corp Earnings Call Transcript
Key Points
- Bank of Hawaii Corp (BOH) reported a solid quarter with diluted earnings per share of $1.47 and net income of $63.8 million, reflecting increases of 13% and 11% respectively from the prior quarter.
- The net interest margin expanded by 4 basis points to 2.78%, marking the ninth consecutive quarter of margin expansion.
- Credit quality remains strong with low delinquencies, nonperforming assets, and net charge-offs, indicating robust asset quality.
- The Wealth Management division showed strong performance, benefiting from market conditions and increased customer demand for advisory-related services.
- The bank's strategic initiatives, such as the Center for Family Business and Entrepreneurs, are developing a strong client pipeline, enhancing its advisory capabilities.
- Average deposits declined modestly from the prior quarter, following a seasonal pattern, which may limit opportunities for deposit cost improvement in the near term.
- The competitive environment for deposits remains elevated, with customers prioritizing yield, potentially impacting deposit pricing.
- The criticized asset ratio increased to 2.81% from 2.12%, driven by a single borrower relationship, although the exposure is well secured by real estate.
- The absence of similar residential project closings is likely to moderate third-quarter growth in consumer lending.
- The cost of interest-bearing liabilities increased slightly, reflecting the rise in deposit costs and competitive deposit pricing pressures.
Good day and thank you for standing by. Welcome to the Bank of Hawaii Corporation second quarter 2026 earnings conference call. (Operator Instructions) I would now like to hand the conference over to your speaker today, Chang Park, Executive Vice President, Executive Director of Financial Performance and Investor Relations. Please go ahead.
Good morning and good afternoon. Thank you for joining us today for our second quarter 2026 earnings conference call. Joining me today is our President and CEO, Jim Polk, CFO Brad Satenberg, Chief Risk Officer, Brad Shairson; and Manager of Investor Relations, Patricia Lam. 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 the earnings release. Both of these are available on our website, boh.com,
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