Bank of Hawaii sees 25 basis point pickup in NIM per year

Asked about net interest margin expectations on the company’s Q3 earnings call, executives at Bank of Hawaii (BOH) stated: “I think what we’ve been fixating on and what investors have been questioning is can we achieve 250 by year end this year. At this point, that seems to be a likely potential for Q4. And then as we move into 26, what we would anticipate. I mean, the fixed asset accretion is just going to continue on for a number of years, frankly. And so the way to think about it is, I think a base layer, assuming deposit remix of about what we’ve experienced the past couple of quarters and kind of rate and the yield curve, as is, that’s about a 25 basis point pickup in NIM per year. So 25 Bips. And then on top of that, as Brad alluded to, there’s opportunity for improvement in the NIM as fed funds comes down. And frankly, I think we still probably have, you know, some opportunity in repricing of the overall deposit book moving forward. So I guess the answer to me is 25 basis points per year. And then I think there’s upside in both fed funds coming down as well as just overall pricing to the the overall deposit book.”