Bank of Hawaii reported Q4 revenue of $189.7 million, surpassing consensus estimates by $4.8 million. The bank’s efficiency ratio improved sequentially, contributing to a 6% rally in its share price following the release. Investors responded positively to both the top-line beat and management’s confirmation of full‐year guidance.

Net interest income rose by 8% year-over-year as the net interest margin expanded to 2.61%, up 15 basis points from the prior quarter. Fee income increased by 5% driven by higher wealth management and payment processing revenues, supporting operating leverage and offsetting elevated noninterest expenses.

Nonperforming assets declined to 0.45% of total loans, down from 0.55% in the prior quarter, reflecting continued discipline in underwriting across BOH’s specialized Hawaiian markets. Provision expense was modest, at $3 million, reinforcing the bank’s solid credit profile.

Total deposits grew 2% sequentially to $23 billion, while total loans increased by 1.5% to $18.5 billion, signaling resilient local demand. The Common Equity Tier 1 ratio stood at 10.8%, up 20 basis points quarter-over-quarter, underlining a strengthened capital buffer ahead of anticipated interest rate normalization in 2026.