BOH Stock Forecast & Price Target

Bank of Hawaii is well positioned by a powerful deposit franchise in Hawaii, where it holds approximately 35% of statewide deposit market share and benefits from customer loyalty that keeps the cost of deposits below peers at 1.24% in 1Q26. Its core earnings outlook is improving as net interest margin has expanded for 10 consecutive quarters to 2.82% in 3Q, driven by fixed asset repricing, with further margin support expected from repricing schedules and a 1.6% sequential lift in NII to $156.1 million. Credit quality remains exceptional, with NPAs at 0.09% of loans and OREO in 1Q26 and net charge-offs at just 0.03% of average loans, while strong capital ratios and ongoing buybacks support shareholder returns.

Bank of Hawaii is viewed negatively because earnings momentum is softening, with 2026 and 2027 EPS estimates cut from $5.90 and $6.70 to $5.85 and $6.60 as a lower net interest income outlook outweighs modest expense relief. The main concern is that loan growth may not meet expectations despite solid pipelines, which would pressure revenue and keep the stock vulnerable if NII and net interest margin underperform. Additional downside comes from the risk of a weaker Pacific Islands economy, including home price declines, worsening employment, or tourism pressure from elevated jet fuel prices and airfares, alongside any deterioration in credit quality or bank valuations.