Regional banking institution Bank of Hawaii (NYSE: BOH) fell short of the market’s revenue expectations in Q2 CY2026, but sales rose 12% year on year to $196.9 million. Its GAAP profit of $1.47 per share was 1.3% above analysts’ consensus estimates.
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Bank of Hawaii (BOH) Q2 CY2026 Highlights:
- Net Interest Income: $153.6 million vs analyst estimates of $156.7 million (18.4% year-on-year growth, 2% miss)
- Net Interest Margin: 2.8% vs analyst estimates of 2.8% (3.4 basis point miss)
- Revenue: $196.9 million vs analyst estimates of $199.7 million (12% year-on-year growth, 1.4% miss)
- Efficiency Ratio: 56.5% vs analyst estimates of 56.4% (5 basis point miss)
- EPS (GAAP): $1.47 vs analyst estimates of $1.45 (1.3% beat)
- Tangible Book Value per Share: $38.01 vs analyst estimates of $38.02 (10.6% year-on-year growth, in line)
- Market Capitalization: $3.33 billion
“Bank of Hawai‘i delivered solid second quarter results reflecting steady execution and disciplined balance sheet management,” said Jim Polk, President and CEO.
Company Overview
Founded in 1897 as a financial anchor for the newly annexed Hawaiian territory, Bank of Hawaii (NYSE: BOH) is a financial institution providing banking, investment, and insurance services primarily to customers in Hawaii, Guam, and other Pacific Islands.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Unfortunately, Bank of Hawaii’s 3% annualized revenue growth over the last five years was sluggish. This was below our standards and is a poor baseline for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Bank of Hawaii’s annualized revenue growth of 9.8% over the last two years is above its five-year trend, which is encouraging. 
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Bank of Hawaii’s revenue grew by 12% year on year to $196.9 million but fell short of Wall Street’s estimates.
Net interest income made up 74.5% of the company’s total revenue during the last five years, meaning lending operations are Bank of Hawaii’s largest source of revenue.
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.
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Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
Bank of Hawaii’s TBVPS grew at a sluggish 2.3% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 10.5% annually over the last two years from $31.12 to $38.01 per share.
Over the next 12 months, Consensus estimates call for Bank of Hawaii’s TBVPS to grow by 9.6% to $41.67, paltry growth rate.
Key Takeaways from Bank of Hawaii’s Q2 Results
We struggled to find many positives in these results. Its net interest income missed and its revenue fell slightly short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock remained flat at $83.97 immediately following the results.
So do we think Bank of Hawaii is an attractive buy at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
