Bank of Hawaii (NYSE:BOH) Releases Quarterly Earnings Results

Bank of Hawaii (NYSE:BOH) released its quarterly earnings data on Monday. The bank reported $1.49 EPS for the quarter, missing the consensus estimate of $1.51 by ($0.02), RTT News reports. The company had revenue of $198.76 million during the quarter, compared to analyst estimates of $202.59 million. Bank of Hawaii had a net margin of 21.84% and a return on equity of 15.72%. During the same quarter in the prior year, the firm earned $1.20 earnings per share.

Here are the key takeaways from Bank of Hawaii’s conference call:

• Third-quarter earnings improved: diluted EPS rose 24.2% year over year to $1.49, while net income increased 20.5% to $64.3 million and return on average common equity reached 15.4%.
• Net interest income increased to $156.1 million and net interest margin expanded four basis points to 2.82%, marking the tenth consecutive quarter of improvement; management expects additional support from asset repricing and lower-cost deposit mix.
• Average deposits declined 0.8% as customers funded real estate projects, distributions and working capital needs, while the bank intentionally reduced some higher-cost public deposits. Management expects modest deposit growth in the fourth quarter and low-to-mid-single-digit loan growth led by commercial lending.
• Credit quality remained generally strong, with net charge-offs of 9 basis points and criticized assets declining to 2.37%, although non-performing assets rose to 30 basis points because of one commercial real estate loan. Management expects any loss on the property sale to be immaterial and already reserved.
• The bank plans to repurchase another $20 million of common stock in the fourth quarter, with the board authorizing an additional $200 million under the repurchase plan; it also declared a quarterly common dividend of $0.70 per share.

Bank of Hawaii Stock Up 0.0%

BOH opened at $70.61 on Tuesday. The stock has a fifty day moving average of $72.53 and a 200-day moving average of $76.32. The company has a market capitalization of $2.79 billion, a P/E ratio of 13.17, a P/E/G ratio of 0.86 and a beta of 0.72. Bank of Hawaii has a fifty-two week low of $62.51 and a fifty-two week high of $86.31. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.70 and a current ratio of 0.70.

Bank of Hawaii Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 14th. Stockholders of record on Monday, November 30th will be issued a dividend of $0.70 per share. The ex-dividend date of this dividend is Monday, November 30th. This represents a $2.80 dividend on an annualized basis and a dividend yield of 4.0%. Bank of Hawaii’s dividend payout ratio (DPR) is currently 52.24%.

Analyst Upgrades and Downgrades

BOH has been the subject of a number of research reports. Keefe, Bruyette & Woods cut shares of Bank of Hawaii from an “outperform” rating to a “market perform” rating and set a $78.00 target price for the company. in a research note on Tuesday. Benchmark restated a “hold” rating on shares of Bank of Hawaii in a research report on Tuesday, July 28th. Barclays cut their price objective on shares of Bank of Hawaii from $88.00 to $85.00 and set an “equal weight” rating for the company in a research report on Tuesday, July 28th. Stephens cut Bank of Hawaii from an “overweight” rating to an “equal weight” rating and set a $85.00 price objective for the company. in a report on Thursday, August 6th. Finally, Piper Sandler decreased their target price on Bank of Hawaii from $85.00 to $78.00 and set a “neutral” rating on the stock in a research report on Thursday, October 1st. One analyst has rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $82.20.

Bank of Hawaii News Summary

Here are the key news stories impacting Bank of Hawaii this week:

• Positive Sentiment: Third-quarter net income increased 20.5% year over year to approximately $64.3 million, while diluted EPS rose to $1.49 from $1.20 a year earlier. The bank also authorized an additional $200 million for share repurchases, bringing available buyback capacity to roughly $268.7 million. Bank of Hawaii plans $20M Q4 buyback after adding $200M authorization
• Positive Sentiment: Bank of Hawaii declared its regular $0.70-per-share quarterly dividend, equivalent to $2.80 annually and an approximately 4% yield. The dividend supports the stock’s income appeal, although investors of record must hold shares before the November 30 ex-dividend date. Bank of Hawaii declares quarterly cash dividend
• Positive Sentiment: One bullish analysis reiterated a Buy rating, citing Bank of Hawaii’s dominant Hawaii market position, strong 14.4% CET1 capital ratio, conservative real-estate lending and resilient credit quality as potential support for future returns. Bank of Hawaii rate tailwinds support upside

Insider Activity at Bank of Hawaii

In related news, insider Marco Abbruzzese sold 2,441 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $81.59, for a total transaction of $199,161.19. The transaction was disclosed in a document filed with the SEC, which is available through this link. Company insiders own 1.97% of the company’s stock.

Bank of Hawaii Company Profile

Bank of Hawaii Corporation is the parent company of Bank of Hawaii, a regional financial institution headquartered in Honolulu. Founded in 1897, the bank provides banking and financial services to consumers, businesses, and government entities, with a primary focus on Hawaii and selected Pacific markets.

Its consumer banking business offers deposit accounts, residential and consumer lending, credit cards, online and mobile banking, and other personal financial products. Through its commercial banking operations, Bank of Hawaii provides business loans, commercial real estate financing, treasury management, payments, and deposit services to companies and institutions.

The company also provides wealth management, trust, investment management, and private banking services.