Bank of Hawaii (BOH) closed out FY 2025 with fourth quarter revenue of US$187.1 million and basic EPS of US$1.54, supported by trailing twelve month revenue of US$705.1 million and EPS of US$4.67 that marked a 34.6% improvement in earnings versus the prior year. Over recent quarters the company has seen revenue move from US$159.5 million in Q4 2024 to US$187.1 million in Q4 2025, while quarterly EPS went from US$0.86 to US$1.54. This sets up this earnings season around how durable those higher margins and profit levels prove to be.

See our full analysis for Bank of Hawaii.

With the latest numbers on the table, the next step is to measure them against the main narratives around Bank of Hawaii to see which views are supported by the data and which might need a rethink.

26.2% net margin sets the tone

• Over the last 12 months, Bank of Hawaii converted US$705.1 million of revenue into US$184.8 million of net income, which works out to a 26.2% net margin compared with 21.9% a year earlier.
• What stands out for the bullish view is that this 26.2% margin sits alongside trailing EPS of US$4.67 and a 34.6% earnings gain over the past year, while the five year EPS trend was a 7.9% annual decline, which creates a clear split between the recent improvement and the longer term record.
  • Supporters can point to FY 2025 quarterly net income stepping from US$33.9 million in Q4 2024 to US$60.9 million in Q4 2025 as evidence that recent profitability lines up with that stronger trailing margin.
  • Skeptics, however, may note that the longer run 7.9% EPS contraction rate over five years sits in the background, so they might watch how sustainable the recent US$184.8 million of trailing net income turns out to be rather than assuming the latest year is the new normal.

To see how this profit profile fits into longer term growth and valuation views for Bank of Hawaii, check out the latest narrative and valuation breakdown. Curious how numbers become stories that shape markets? Explore Community Narratives

Loan book steady, credit costs contained

• Total loans stayed around US$14.0 billion across the periods shown, while non performing loans were reported between US$16.1 million and US$17.5 million, which is a small fraction of the overall book.
• Bears often worry about concentrated regional exposure, and for a bank focused on Hawaii and nearby markets, critics might expect to see rising problem loans. Yet the data shows non performing loans at US$16.6 million in Q4 2024, US$17.1 million in Q3 2024 and US$16.1 million in Q1 2025, which suggests credit quality has stayed within a tight range instead of showing a clear deterioration.
  • The fact that non performing loans sit in the mid to high teen millions against roughly US$14.0 billion of total loans indicates that reported problem credits remain a very small slice of the balance sheet in these snapshots.
  • For investors who focus on risk in the loan book, this pattern gives them a concrete set of figures to track, rather than a data free concern about regional exposure.

Valuation gap versus DCF fair value

• With the share price at US$75.11 and a trailing P/E of 16.2x, Bank of Hawaii is described as trading about 43.8% below a DCF fair value estimate of US$133.73 and on a lower P/E than peers at 18.8x, yet on a higher multiple than the broader US Banks industry at 11.8x.
• Supporters argue this sets up an appealing bullish case, and the numbers give that view some backing because the US$75.11 price sits well under the US$133.73 DCF fair value while coming with a 3.73% dividend yield and trailing EPS of US$4.67. The same data also shows that forecast revenue growth of 8.3% per year and forecast earnings growth of 13.3% per year are both described as slower than the wider US market.
  • For bullish investors, the combination of a P/E below peers, a wide gap to the DCF fair value and a 26.2% net margin can look like a value plus quality mix if those earnings and margins hold up.
  • Others may focus on the fact that the P/E still sits above the US Banks industry average of 11.8x and that revenue growth is stated as trailing the broader market, which they may see as reasons why the discount to DCF fair value persists.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Bank of Hawaii's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

While Bank of Hawaii reports a 26.2% net margin and higher recent earnings, the five year 7.9% annual EPS contraction and slower forecast growth versus the wider US market highlight a mixed growth profile.

If that slower outlook gives you pause, you can instead shift your focus to stable growth stocks screener (2180 results) to zero in on companies built around steadier revenue and earnings trends through different cycles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.