BOH Stock Forecast & Price Target

Bank of Hawaii Corp has demonstrated positive financial performance, as evidenced by a 5.4% increase in net interest income (NII) to $136.7 million, surpassing expectations, and a 2.6% rise in noninterest income to $46.0 million, which also exceeded forecasts. The bank has experienced a notable 5.4% quarter-over-quarter growth in deposits, largely driven by increases in savings and certificates of deposit, indicating strong customer confidence. Additionally, the bank's net interest margin (NIM) has improved for six consecutive quarters, positioning it for further expansion as management anticipates additional opportunities for improvement with changing interest rate dynamics.

Bank of Hawaii Corporation (BOH) has experienced a significant contraction in held-for-investment (HFI) loans, registering a -3.2% miss compared to the estimated +0.8% growth, which signals a concerning trend in loan demand and overall growth. The net interest income (NII) also fell short at $131.3 million, driven by a lower net interest margin and a smaller balance sheet than anticipated. Additionally, the company’s expense guidance for fiscal year 2025 suggests limited financial flexibility, with a projected expense reduction in the second half potentially further straining operational efficiencies amid an uncertain interest rate environment.