Bank of Hawai‘i Corporation reported first-quarter 2026 diluted earnings per share of $1.30, down from $1.39 in the prior quarter, as net income fell 5.7% to $57.4 million from the linked quarter.
Net interest income rose 3.9% to $151.0 million, while net interest margin widened to 2.74% from 2.61%, a 13-basis-point improvement. The average yield on total earning assets slipped 4 basis points to 4.03%, and the average loan yield declined 6 basis points to 4.75%. On the funding side, the average rate on interest-bearing deposits dropped 22 basis points to 1.72%, and the average quarterly rate on total deposits fell 17 basis points to 1.26%.
Noninterest income decreased 6.6% to $41.3 million from the prior quarter. Noninterest expense increased 6.0% to $116.1 million. The effective tax rate rose to 22.91% from 21.50%.
Asset quality remained strong. Provision for credit losses fell to $1.8 million from $2.6 million in the prior quarter. Non-performing assets declined to $12.1 million from $14.2 million, and net loan and lease charge-offs dropped to $1.1 million from $4.2 million.
At quarter-end, total assets were $23.9 billion, down 1.1% from December 31, 2025. Total loans and leases increased 0.8% to $14.2 billion, including a 2.0% rise in commercial loans to $6.2 billion. Total deposits fell 1.1% to $21.0 billion, while noninterest-bearing deposits accounted for 27.0% of deposits, down from 27.2%.
Capital ratios were little changed. The Tier 1 capital ratio was 14.40%, down from 14.49%, while the Tier 1 leverage ratio edged up to 8.62% from 8.57%.
The company repurchased 194.1 thousand shares for $15.1 million during the quarter and ended the period with $105.9 million of remaining buyback authority. It also declared a quarterly common dividend of $0.70 per share. The market has reacted to these announcements by moving the company's shares 0.01% to a price of $74.01. For the full picture, make sure to review BANK OF HAWAII CORP's 8-K report.
