Let’s dig into the relative performance of Bank of Hawaii (NYSE:BOH) and its peers as we unravel the now-completed Q2 regional banks earnings season.
Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.
The 94 regional banks stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.9% since the latest earnings results.
Bank of Hawaii (NYSE:BOH)
Founded in 1897 as a financial anchor for the newly annexed Hawaiian territory, Bank of Hawaii (NYSE:BOH) is a financial institution providing banking, investment, and insurance services primarily to customers in Hawaii, Guam, and other Pacific Islands.
Bank of Hawaii reported revenues of $199.3 million, up 13.2% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.
“Bank of Hawai‘i delivered solid second quarter results reflecting steady execution and disciplined balance sheet management,” said Jim Polk, President and CEO.
The market seems disappointed with the results as the stock is down 16.2% since reporting and currently trades at $70.33.
Read our full report on Bank of Hawaii here, it’s free.
Best Q2: OFG Bancorp (NYSE:OFG)
Originally founded in 1964 as a federal savings and loan institution, OFG Bancorp (NYSE:OFG) provides banking and financial services including commercial and consumer lending, wealth management, insurance, and trust services primarily in Puerto Rico and the U.S. Virgin Islands.
OFG Bancorp reported revenues of $190.3 million, up 4.4% year on year, outperforming analysts’ expectations by 3.9%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ net interest income estimates.
The market seems content with the results as the stock is up 3.2% since reporting. It currently trades at $51.62.
Is now the time to buy OFG Bancorp? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Banc of California (NYSE:BANC)
Originally established in 1941 and now operating with a tech-forward approach that includes its SmartStreet platform for homeowner associations, Banc of California (NYSE:BANC) is a California-based bank holding company that provides banking services to small and middle-market businesses, entrepreneurs, and individuals.
Banc of California reported revenues of $285.7 million, up 4.7% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted a significant miss of analysts’ tangible book value per share estimates and a significant miss of analysts’ net interest income estimates.
As expected, the stock is down 15% since the results and currently trades at $18.00.
Read our full analysis of Banc of California’s results here.
Live Oak Bancshares (NYSE:LOB)
Founded during the 2008 financial crisis with a vision to reimagine small business banking through technology, Live Oak Bancshares (NYSE:LOB) is a bank holding company that specializes in providing online banking services and SBA-guaranteed loans to small businesses across targeted industries nationwide.
Live Oak Bancshares reported revenues of $160.1 million, up 11.4% year on year. This print topped analysts’ expectations by 3.2%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ net interest income estimates and a beat of analysts’ EPS estimates.
The stock is down 9.6% since reporting and currently trades at $37.11.
Read our full, actionable report on Live Oak Bancshares here, it’s free.
First Hawaiian Bank (NASDAQ:FHB)
Dating back to 1858 as Hawaii's oldest bank with deep roots in the Pacific island communities, First Hawaiian (NASDAQ:FHB) operates a full-service community bank providing deposit accounts, commercial and consumer loans, credit cards, and wealth management services across Hawaii, Guam, and Saipan.
First Hawaiian Bank reported revenues of $228.5 million, up 5% year on year. This result was in line with analysts’ expectations. Aside from that, it was a slower quarter as it recorded a slight miss of analysts’ net interest income estimates and a narrow beat of analysts’ EPS estimates.
The stock is down 13.5% since reporting and currently trades at $24.78.
Read our full, actionable report on First Hawaiian Bank here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.