BOH Stock Forecast & Price Target

Bank of Hawaii Corp demonstrated solid financial performance, with noninterest income rising 2.6% quarter-over-quarter to $46.0 million, surpassing forecasts. Net interest income also increased by 5.4% to $136.7 million, reflecting a consistent positive trend in both net interest income and net interest margin over six consecutive quarters. Additionally, a 5.4% growth in deposits indicates a strong customer base, despite some offsets from decreased noninterest-bearing and interest-bearing demand balances, supporting the bank's robust financial health and growth potential.

The Bank of Hawaii Corp experienced a significant year-over-year contraction in held-for-investment (HFI) loans of -3.2%, which fell short of the previously estimated growth of +0.8%. This contraction, coupled with a lower-than-expected net interest income (NII) of $131.3 million, reflects challenges in maintaining a robust balance sheet and achieving favorable net interest margins amidst market conditions. Additionally, the bank’s expense guidance of 2%-3% for fiscal year 2025, alongside potential pressures from declining U.S. Treasury rates, suggests further financial strain that could adversely affect future profitability and growth projections.