Bank of Hawai‘i Q1 EPS Misses, 13.2% Revenue Growth; NIM to Near 3%
Bank of Hawai‘i reported Q1 EPS of $1.30 vs $1.33 estimate and revenue of $192.32M vs $193.8M estimate, marking 13.2% year-over-year sales growth and net income of $57.4M. The bank’s net interest margin is expanding, reserve buffers are strong, and run-rate EPS is projected above $7.50 in 18 months as NIM nears 3%.
1. Q1 Financial Results
Bank of Hawai‘i delivered first-quarter EPS of $1.30 versus the $1.33 consensus, up from $0.97 a year ago. Net income reached $57.4 million, representing a 5.7% quarter-over-quarter decline.
2. Revenue Growth
Total revenue for the quarter was $192.32 million, falling just short of the $193.8 million estimate but rising 13.2% from the prior year. This growth reflects higher loan yields and fee income in the core markets.
3. Financial Health
The bank maintains a P/E ratio of 14.78 and a debt-to-equity ratio of 0.05, underscoring a conservative balance sheet. Return on average common equity stood at 13.90% for the quarter.
4. Margin Expansion and Outlook
Declining deposit costs and fixed-rate portfolio reinvestment are driving net interest margin toward 3%. With strong capital reserves and conservative underwriting, run-rate EPS is projected to exceed $7.50 within 18 months.