Bank of Hawaii stock tumbles over 7% on earnings miss

The Bank of Hawaii Corporation's stock plummeted over 7% on Monday following its third quarter 2026 earnings report, which failed to meet analysts' expectations. The company's adjusted earnings per share came in at $1.49, short of the projected $1.51. Despite year-over-year improvements, investors expressed concerns about the bank's performance relative to market projections.

Net income increased by 0.7% to $64.3 million for the quarter, while net interest income grew by 1.6% to $156.1 million. Net interest margins expanded by 4 basis points to 2.82%, marking the tenth consecutive quarter of improvement. However, total deposits declined by 3.3% to $20.5 billion, primarily due to strategic withdrawals of public funds and a drop in commercial deposit balances.

Non-performing assets rose to $43.4 million, a $31.9 million increase from June 30, 2026, largely due to a single commercial mortgage defaulting. The bank repurchased 256,000 shares for $20.2 million during the quarter and increased its share repurchase authorization by $200 million to $268.7 million, while also declaring a quarterly dividend of $0.70 per share.

Bank of Hawaii's CEO, Jim Polk, attributed the positive performance to continued expense discipline and asset repricing, emphasizing the bank's commitment to delivering solid results.