Bank of Hawaii’s second quarter results did not meet Wall Street’s revenue expectations, prompting a negative market reaction. Management attributed performance to continued expansion in net interest margin—helped by asset repricing and stable deposit costs—but acknowledged subdued loan growth, especially in commercial lending. CEO Peter Ho described commercial production as “a little bit of a disappointing quarter,” citing both market uncertainty and elevated prepayments as headwinds. CFO Brad Satenberg highlighted disciplined expense control, noting severance charges tied to ongoing restructuring efforts.

Is now the time to buy BOH? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Bank of Hawaii’s Q2 Earnings Call

• Jeffrey Allen Rulis (D.A. Davidson) asked about the sustainability of margin expansion and cost of funds. CFO Brad Satenberg indicated the margin path remains achievable, supported by CD repricing and asset yield improvement.
• Rulis (D.A. Davidson) also questioned the outlook for loan and securities portfolio growth. Satenberg expects the securities portfolio to continue increasing, using excess liquidity, alongside modest loan growth.
• Jared David Wesley Shaw (Barclays) inquired about commercial lending weakness and customer pipelines. CEO Peter Ho acknowledged the disappointing quarter but remains optimistic for modest future growth if market sentiment improves.
• Robert Andrew Terrell (Stephens) focused on expense trends and capital priorities. Satenberg confirmed expense growth should slow, while Peter Ho signaled a cautious stance on share buybacks until economic and rate clarity improves.
• Kelly Ann Motta (KBW) asked about deposit flows and seasonality. Ho explained that deposit levels typically dip in Q2 and Q3, with expectations for flat trends and a push for more noninterest-bearing deposits.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the pace and magnitude of net interest margin expansion as CDs and other assets reprice, (2) any rebound in commercial loan growth as pipelines build and economic uncertainty potentially recedes, and (3) the evolution of deposit mix and ability to grow noninterest-bearing balances. Progress on expense containment and the impact of ongoing restructuring will also be important indicators of operational discipline.

Bank of Hawaii currently trades at $65.60, in line with $65.63 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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