Bank of Hawaii shares fall 7.51% premarket despite 20.5% annual net income growth
Key Facts
Bank of Hawaii shares fell 7.51% in premarket trading on October 26 after the bank reported third-quarter results, according to Investing.com. Net income was $64.3 million, up 0.7% from the second quarter and 20.5% from the third quarter of 2025. But revenue of $198.8 million fell short of analysts’ consensus of $202.8 million, despite growing 6.8% year over year. The move came before the market opened, while the stock’s last recorded close was $70.6 on October 23. Available data do not link the decline to a single cause, but place the revenue shortfall alongside profit growth and changes in interest income.
On operating profitability, net interest income rose 1.6% to $156.1 million from the previous quarter. Net interest margin also widened by 4 basis points to 2.82%, marking its tenth consecutive quarter of improvement. Chief Executive Jim Polk said the improvement reflects “the continued benefit from asset repricing and the positive impact of deposit repricing actions.” This trend puts margin improvement at the center of the bank’s results, alongside higher net income on both a quarterly and annual basis. The increase in interest income, however, did not prevent overall revenue from missing analysts’ consensus.
Estimates before the announcement pointed to earnings of $1.51 a share and revenue of $202.6 million for the third quarter. Wall Street consensus also forecast annual earnings growth of 25.83%. This earlier revenue estimate differs from the $202.8 million consensus cited in coverage of the results after their release, while actual revenue came in at $198.8 million. The comparison therefore shows that the bank achieved annual revenue growth but did not reach the estimates published before the results. The available facts do not include actual earnings per share, so the confirmed numerical comparison here focuses on revenue and net income.
Before the third-quarter results, second-quarter data showed annual loan growth of 2.6%, led by commercial and industrial lending and residential loans, according to a Reuters pre-results article published via Investing.com. Management’s full-year outlook targeted loan growth in the low-to-mid single digits. This provides background on credit activity ahead of the current announcement, without specifying the amount of loan growth in the third quarter. On the day of the announcement, Bank of Hawaii also recorded a $200 million increase in its share repurchase authorization, bringing the total to $268.7 million, according to EL7 data. This coincided with the results announcement, while the recorded share reaction remained a decline in premarket trading.