Bank of Hawaii (NYSE:BOH) Releases Earnings Results, Misses Estimates By $0.02 EPS

Bank of Hawaii (NYSE:BOH) posted its quarterly earnings data on Monday. The bank reported $1.49 earnings per share for the quarter, missing the consensus estimate of $1.51 by ($0.02), RTT News reports. The firm had revenue of $198.76 million during the quarter, compared to the consensus estimate of $202.59 million. During the same period last year, the company 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 Price Performance

NYSE:BOH opened at $70.16 on Wednesday. Bank of Hawaii has a 12-month low of $62.54 and a 12-month high of $86.31. The firm has a 50-day moving average price of $72.34 and a 200 day moving average price of $76.32.

Bank of Hawaii Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 14th. Investors of record on Monday, November 30th will be given a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 4.0%. The ex-dividend date of this dividend is Monday, November 30th.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on BOH shares. Keefe, Bruyette & Woods cut shares of Bank of Hawaii from an “outperform” rating to a “market perform” rating and cut their target price for the company from $85.00 to $78.00 in a research note on Tuesday. Stephens lowered shares of Bank of Hawaii from an “overweight” rating to an “equal weight” rating and set a $85.00 price target on the stock. in a research report on Thursday, August 6th. DA Davidson restated a “neutral” rating and set a $75.00 price objective on shares of Bank of Hawaii in a report on Tuesday. Weiss Ratings lowered shares of Bank of Hawaii from a “buy (b)” rating to a “buy (b-)” rating in a research report on Monday, October 19th. Finally, 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. One research analyst has rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, Bank of Hawaii has a consensus rating of “Hold” and an average price target of $80.20.

Insiders Place Their Bets

In other news, insider Marco Abbruzzese sold 2,441 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $81.59, for a total value of $199,161.19. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 1.97% of the company’s stock.

About Bank of Hawaii

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.