Bank of Hawai‘i Corporation (BOH) posted a 5.7% decline in net income to $57.4 million for Q1 2026, with diluted earnings per share at $1.30. Despite the dip, the stock rose 1.79% to $81.52, reflecting investor confidence in improved net interest margins and stable deposits.

Net interest income climbed 3.9% to $151 million, driven by lower deposit costs following recent rate cuts. The net interest margin expanded by 13 basis points to 2.74%, underscoring stronger balance sheet management. Loan yields softened to 4.75%, reflecting floating-rate repricing in a lower-rate environment.

Credit quality remained robust, with nonperforming assets holding steady at 0.15% of total loans. The bank maintained a CET1 ratio of 11.3%, well above regulatory requirements. Deposit balances were flat quarter-over-quarter, signaling stability in customer funding.