Bank of Hawaii Corporation reported net income of $64.3 million for the third quarter of 2026, a slight increase of 0.7% compared to the linked quarter. Diluted earnings per common share were reported at $1.49, up from $1.47 in the prior quarter. The company’s return on average common equity for the period was 15.38%.
Net interest income for the quarter totaled $156.1 million, representing a 1.6% increase from the linked quarter. This growth was attributed to a 5-basis point rise in earning asset yields, driven by fixed-rate asset repricing and reinvestment at higher rates. As a result, the net interest margin expanded to 2.82%, an increase of 4 basis points from the linked quarter.
Noninterest income for the third quarter was $42.7 million, a decrease of 1.4% from the linked quarter. The company noted a $0.6 million charge related to a Visa Class B share conversion ratio change during the quarter. Noninterest expense was $112.3 million, an increase of 1.0% from the linked quarter, primarily due to higher net equipment and occupancy expenses.
Asset quality metrics remained stable, with the provision for credit losses decreasing to $2.8 million from $3.6 million in the linked quarter. Total non-performing assets stood at $43.4 million at September 30, 2026, representing 0.30% of total loans and leases. The allowance for credit losses on loans and leases was $146.2 million, or 1.02% of total loans outstanding.
On the balance sheet, total assets were $23.8 billion at September 30, 2026, while total loans and leases increased to $14.4 billion, up 2.1% from December 31, 2025. Total deposits were $20.5 billion, a decrease of 3.3% from the prior year-end, driven by strategic runoff of public funds and lower commercial deposit balances.
Bank of Hawaii repurchased 256,000 shares of common stock during the quarter at a total cost of $20.2 million. Subsequent to the quarter-end, the Board of Directors increased the authorization under the share repurchase program by $200 million, bringing total remaining authority to $268.7 million. The company also declared a quarterly cash dividend of $0.70 per share on common stock, payable on December 14, 2026.
