Regional banking institution Bank of Hawaii (NYSE: BOH) reported revenue ahead of Wall Streets expectations in Q4 CY2025, with sales up 13.3% year on year to $189.6 million. Its GAAP profit of $1.39 per share was 5.5% above analysts’ consensus estimates.
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Bank of Hawaii (BOH) Q4 CY2025 Highlights:
- Net Interest Income: $145.4 million vs analyst estimates of $141.9 million (21% year-on-year growth, 2.5% beat)
- Net Interest Margin: 2.6% vs analyst estimates of 2.5% (10.5 basis point beat)
- Revenue: $189.6 million vs analyst estimates of $185.4 million (13.3% year-on-year growth, 2.3% beat)
- Efficiency Ratio: 57.8% vs analyst estimates of 59% (125 basis point beat)
- EPS (GAAP): $1.39 vs analyst estimates of $1.32 (5.5% beat)
- Tangible Book Value per Share: $37.12 vs analyst estimates of $36.43 (14.3% year-on-year growth, 1.9% beat)
- Market Capitalization: $2.82 billion
“Bank of Hawai‘i completed 2025 with strong financial performance,” said Peter Ho, Chairman 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
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Over the last five years, Bank of Hawaii grew its revenue at a weak 1.4% compounded annual growth rate. This fell short of our benchmarks and is a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Bank of Hawaii’s annualized revenue growth of 4.2% over the last two years is above its five-year trend, but we were still disappointed by the results. 
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 reported year-on-year revenue growth of 13.3%, and its $189.6 million of revenue exceeded Wall Street’s estimates by 2.3%.
Net interest income made up 74.2% of the company’s total revenue during the last five years, meaning lending operations are Bank of Hawaii’s largest source of revenue.
Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.
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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.
Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.
Bank of Hawaii’s TBVPS grew at a sluggish 2.1% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 10.8% annually over the last two years from $30.25 to $37.12 per share.
Over the next 12 months, Consensus estimates call for Bank of Hawaii’s TBVPS to grow by 6.7% to $39.62, lousy growth rate.
Key Takeaways from Bank of Hawaii’s Q4 Results
It was encouraging to see Bank of Hawaii beat analysts’ net interest income expectations this quarter. We were also happy its revenue outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $71.45 immediately following the results.
Sure, Bank of Hawaii had a solid quarter, but if we look at the bigger picture, is this stock a buy? 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).
