Regional banking institution Bank of Hawaii (NYSE: BOH) missed Wall Street’s revenue expectations in Q1 CY2026, but sales rose 11.5% year on year to $192.3 million. Its GAAP profit of $1.30 per share was 1.7% below analysts’ consensus estimates.
Is now the time to buy Bank of Hawaii? Find out by accessing our full research report, it’s free.
Bank of Hawaii (BOH) Q1 CY2026 Highlights:
- Net Interest Income: $151 million vs analyst estimates of $151.3 million (20% year-on-year growth, in line)
- Net Interest Margin: 2.7% vs analyst estimates of 2.7% (5.3 basis point beat)
- Revenue: $192.3 million vs analyst estimates of $194.5 million (11.5% year-on-year growth, 1.1% miss)
- Efficiency Ratio: 60.4% vs analyst estimates of 58.2% (218.3 basis point miss)
- EPS (GAAP): $1.30 vs analyst expectations of $1.32 (1.7% miss)
- Tangible Book Value per Share: $37.31 vs analyst estimates of $36.28 (11.6% year-on-year growth, 2.8% beat)
- Market Capitalization: $3.18 billion
“Bank of Hawai‘i began the year on firm footing,” 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
Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Unfortunately, Bank of Hawaii’s 2.2% annualized revenue growth over the last five years was sluggish. This fell short of our benchmarks 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 7.4% over the last two years is above its five-year trend, which is encouraging. 
Note: Quarters not shown were determined to be outliers, 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 11.5% year on year to $192.3 million but fell short of Wall Street’s estimates.
Net interest income made up 74.4% of the company’s total revenue during the last five years, meaning lending operations are Bank of Hawaii’s largest source of revenue.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.
Tangible Book Value Per Share (TBVPS)
Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. 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 2.6% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 10% annually over the last two years from $30.83 to $37.31 per share.
Over the next 12 months, Consensus estimates call for Bank of Hawaii’s TBVPS to grow by 7.4% to $40.07, lousy growth rate.
Key Takeaways from Bank of Hawaii’s Q1 Results
We enjoyed seeing Bank of Hawaii beat analysts’ net interest margin and tangible book value per share expectations this quarter. On the other hand, its revenue, efficiency ratio, and EPS all fell slightly short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock remained flat at $79.88 immediately following the results.
Bank of Hawaii may have had a tough quarter, but does that actually create an opportunity to invest right now? 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).
