Bank of Hawai‘i Corporation Second Quarter 2026 Financial Results

Diluted Earnings Per Common Share of $1.47

Net Income of $63.8 Million

Net Interest Margin Increased to 2.78%

Share Repurchases of $17.0 Million

HONOLULU, July 27, 2026–(BUSINESS WIRE)–Bank of Hawai’i Corporation (NYSE: BOH) (the “Company”) today reported diluted earnings per common share of $1.47 for the second quarter of 2026, compared with $1.30 during the linked quarter. Net income for the quarter was $63.8 million, up 11.1% from the linked quarter. The return on average common equity for the second quarter of 2026 was 15.47% compared with 13.90% during the linked quarter.

“Bank of Hawai’i delivered solid second quarter results reflecting steady execution and disciplined balance sheet management,” said Jim Polk, President and CEO. “Net interest margin expanded for the ninth consecutive quarter, supported by the ongoing repricing of cash flows. Total loans and leases increased from the prior quarter, while average total deposits were modestly lower during a seasonally lower period. Credit quality remained strong, and we continued to maintain a disciplined approach to expenses.”

Net interest income for the second quarter of 2026 was $153.6 million, an increase of 1.7% from the linked quarter. The increase was primarily driven by a 5 basis point increase in earning asset yield as fixed-rate assets rolled off and were reinvested at higher rates (fixed asset repricing), partially offset by a shift from noninterest-bearing deposits and interest-bearing deposits yielding less than 10 basis points to higher yielding interest-bearing deposits accounts (deposit mix shift) and higher deposit costs.

Net interest margin was 2.78% in the second quarter of 2026, an increase of 4 basis points from the linked quarter, reflecting the same asset yield and deposit cost dynamics as previously mentioned.

The average yield on total earning assets was 4.08% and the average yield on loans and leases was 4.79% in the second quarter of 2026, up 5 basis points and 4 basis points, respectively, from the linked quarter. The increase in loan yield from the linked quarter was primarily driven by fixed asset repricing and additional loan production at higher current rates. Loan originations of all loans, including floating rate loans, during the quarter were originated at an average rate of 5.90%.

The average rate of interest-bearing deposits was 1.73% and the average quarterly rate of total deposits, including noninterest-bearing deposits, was 1.27%, both up 1 basis point from the linked quarter. The increase in the rate on total deposits was primarily driven by deposit mix shift and higher rates on interest-bearing demand and savings deposits, partially offset by maturing time deposits renewing at lower rates. The deposit beta for the downward rate cycle was 35.5% as of the second quarter of 2026.

Noninterest income was $43.3 million in the second quarter of 2026, an increase of 4.8% from the linked quarter. Noninterest income included a $0.4 million and a $0.2 million charge related to a Visa Class B share conversion ratio change in the second quarter of 2026 and linked quarter, respectively. Adjusted for these items, noninterest income for the second quarter of 2026 was up 5.3% from the linked quarter. The increase was primarily due to increases in trust and asset management fees and commissions earned on our annuity and insurance business.

Noninterest expense was $111.2 million in the second quarter of 2026, a decrease of 4.2% from the linked quarter. Noninterest expense in the second quarter included a $0.5 million net benefit related to the forfeiture of restricted stock awards. Noninterest expense in the linked quarter included $3.5 million in expenses related to the accelerated vesting of restricted stock awards pursuant to the retirement provision of performance-based restricted stock granted in 2024 and 2025 and $0.7 million in separation expenses. Adjusted for these items, noninterest expense for the second quarter of 2026 decreased by 0.2% from the linked quarter.

The effective tax rate for the second quarter of 2026 was 22.31% compared to 22.91% during the linked quarter. The lower effective tax rate in the current quarter as compared to the linked quarter was primarily due to higher benefits from certain tax advantaged investments and an increase in tax benefits from discrete items.

The Company’s overall asset quality remained strong during the second quarter of 2026. Provision for credit losses for the second quarter of 2026 was $3.6 million, up $1.9 million from the linked quarter. This increase was primarily driven by higher net loan and lease charge-offs during the second quarter of 2026 as compared to the linked quarter, which included a $1.6 million recovery on a single commercial mortgage loan.

Total non-performing assets were $11.5 million at June 30, 2026, down $0.6 million from March 31, 2026. Non-performing assets as a percentage of total loans and leases and foreclosed real estate were 0.08% at the end of the quarter, a decrease of 1 basis point from the linked quarter.

Net loan and lease charge-offs during the second quarter of 2026 were $3.4 million or 10 basis points annualized of total average loans and leases outstanding. Gross charge-offs of $4.7 million were partially offset by gross recoveries of $1.3 million. Compared to the linked quarter, net loan and lease charge-offs increased by $2.3 million or 7 basis points annualized on total average loans and leases outstanding.

The allowance for credit losses on loans and leases was $147.0 million at June 30, 2026, unchanged from March 31, 2026. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.03% at the end of the quarter, a decrease of 1 basis point from March 31, 2026.

Total assets were $23.8 billion at June 30, 2026, a decrease of 1.4% from December 31, 2025. The decrease from December 31, 2025 was primarily due to decreases in cash and cash equivalents and held-to-maturity securities, partially offset by increases in loans and leases and available-for-sale securities.

The investment securities portfolio was $7.7 billion at June 30, 2026, a decrease of 0.9% from December 31, 2025. The decrease was primarily due to portfolio runoff, including maturities and paydowns, partially offset by purchases in available-for-sale securities. The investment securities portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.

Total loans and leases were $14.3 billion at June 30, 2026, an increase of 1.5% from December 31, 2025. Total commercial loans were $6.2 billion at June 30, 2026, an increase of 2.6% from December 31, 2025. The increase was primarily due to commercial mortgage and commercial and industrial production. Total consumer loans were $8.0 billion at June 30, 2026, an increase of 0.6% from December 31, 2025. The increase was primarily due to increased production in the residential mortgage portfolio, partially offset by amortization and paydowns.

Total deposits were $20.9 billion at June 30, 2026, a decrease of 1.4% from December 31, 2025. Noninterest-bearing deposits made up 26.7% of total deposit balances at June 30, 2026, down from 27.2% at December 31, 2025. Average total deposits were $20.8 billion for the second quarter of 2026, down 0.7% from December 31, 2025.

The Company’s capital levels remain well above regulatory well-capitalized minimums.

The Tier 1 Capital Ratio was 14.45% at June 30, 2026 compared with 14.49% at December 31, 2025. The decrease from December 31, 2025 was due to an increase in risk-weighted assets and share repurchases, as discussed below, partially offset by an increase in retained earnings. The Tier 1 Leverage Ratio was 8.70% at June 30, 2026, compared with 8.57% at December 31, 2025. The increase from December 31, 2025 was due to a decline in average assets and an increase in retained earnings.

The Company repurchased 216 thousand shares of common stock at a total cost of $17.0 million under the share repurchase program in the second quarter of 2026. Total remaining buyback authority under the share repurchase program was $88.9 million at June 30, 2026.

The Company’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Company’s outstanding common shares. The dividend will be payable on September 15, 2026 to shareholders of record at the close of business on August 31, 2026.

On July 6, 2026, the Company announced that the Board of Directors declared a quarterly dividend payment of $10.94 per share, equivalent to $0.2735 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, and a quarterly dividend payment of $20.00 per share, equivalent to $0.5000 per depositary share, of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B. The depositary shares representing the Series A Preferred Stock and Series B Preferred Stock are traded on the NYSE under the symbol “BOH.PRA” and “BOH.PRB”, respectively. The dividends on the Series A Preferred Stock and Series B Preferred Stock will be payable on August 3, 2026 to shareholders of record of the preferred stock as of the close of business on July 17, 2026.

Conference Call Information

The Company will review its second quarter financial results today at 8:00 a.m. Hawai’i Time (2:00 p.m. Eastern Time). The live call, including a slide presentation, will be accessible on the investor relations link of Bank of Hawai’i Corporation’s website, www.boh.com. The webcast can be accessed via the link: https://register-conf.media-server.com/register/BIbf819fb4b2824119b0496adf4c769c13. A replay of the conference call will be available for one year beginning at approximately 11:00 a.m. Hawai’i Time on Monday, July 27, 2026. The replay will be available on the Company’s website, www.boh.com.

Investors and others should note that the Company intends to announce financial and other information to the Company’s investors using the Company’s investor relations website at https://ir.boh.com, social media channels, press releases, SEC filings and public conference calls and webcasts, all for purposes of complying with the Company’s disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, as information is updated, and new information is posted.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain “forward-looking statements” (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties that could cause results to be materially different from expectations. Forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations are examples of certain of these forward-looking statements. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawai’i Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the U.S. Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

Bank of Hawai’i Corporation is an independent regional financial services company serving businesses, consumers, and governments in Hawai’i and the West Pacific. The Company’s principal subsidiary, Bank of Hawai’i, was founded in 1897. For more information about Bank of Hawai’i Corporation, see the Company’s website, www.boh.com. Bank of Hawai’i Corporation is a trade name of Bank of Hawaii Corporation.

Bank of Hawai’i Corporation and Subsidiaries

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