Bank of Hawaii (BOH) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.85 per share. This compares to earnings of $1.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 1.18%. A quarter ago, it was expected that this bank holding company would post earnings of $0.92 per share when it actually produced earnings of $0.87, delivering a surprise of -5.43%. Bank of Hawaii, which belongs ...

Core Viewpoint - Bank of Hawaii (BOH) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended June 2024, which could significantly influence its near-term stock price depending on how actual results compare to estimates [1][2]. Revenue Expectations - Revenues are projected to be $157.35 million, reflecting a decrease of 6.1% compared to the same quarter last year [3]. Earnings Per Share (EPS) Estimates - The consensus EPS estimate for the upcoming quarter is $0.85, indicating a year-over-year decline of 24.1% [7]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 3.76%, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][11]. - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.08% [11]. Historical Performance - In the last reported quarter, Bank of Hawaii was expected to post earnings of $0.92 per share but actually reported $0.87, resulting in a surprise of -5.43% [14]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [15]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [19]. - Currently, Bank of Hawaii holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [12][13]. Conclusion - Overall, Bank of Hawaii does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors before making investment decisions ahead of the earnings release [17].

Core Viewpoint - The Bank of Hawaii's low net interest margin and limited buffer for loan losses are significant concerns, making its common shares less attractive for investment compared to peers like JPMorgan Chase [1][4]. Financial Performance - The Bank of Hawaii's common shares are trading at 16 times earnings, which is considered expensive relative to JPMorgan Chase's 12 times earnings [1]. - The bank's Series A preferred shares offer a dividend yield of just over 6%, while the newly issued Series B preferred shares provide a more attractive yield of 7.8% [1][4]. - Recent interest rate increases have pressured the bank's net interest margin, which has been declining, although at a slower pace in recent quarters [6][7]. - The bank has experienced five consecutive quarters of declines in net interest income, with interest income growth stalling despite higher interest rates [8]. Loan and Deposit Management - The Bank of Hawaii has maintained conservative lending growth, currently flat year-over-year, which is viewed positively in the context of recent challenges in the banking sector [10]. - The bank's loan to deposit ratio is under 70%, which is below the average for commercial banks, indicating a conservative approach to capital management [18]. - The bank's largest loan exposure is in residential real estate, accounting for approximately half of its loan portfolio, with commercial real estate mortgages making up $3.7 billion of the $13.8 billion total [20]. Credit Quality and Risks - The bank's loan performance is currently strong, with only $2 million in loans identified as delinquent or on nonaccrual status, representing less than 0.5% of total loans [21]. - The allowance for credit losses is around 1% of gross loans, which is below the industry average of 1.6%, indicating a potential risk if loan performance deteriorates [21]. - The bank has over $8.6 billion in uninsured deposits, which constitutes more than 40% of total deposits, posing a liquidity risk despite having sufficient borrowing capacity [22].

Core Insights - The article discusses recent offerings of preferred stocks and exchange-traded debt securities, highlighting investment opportunities for individual investors using wholesale prices [5][9]. Summary by Category New Offerings - Bank of Hawaii priced an offering of $165 million in new series B non-cumulative preferred stock with a fixed dividend rate of 8%, trading at $25.67 [9]. - Brookfield Infrastructure issued $150 million in new exchange-traded subordinated notes due 2084 with a fixed coupon of 7.25%, trading slightly below par [9]. - NewtekOne priced $71.875 million in new exchange-traded senior notes due 2029 with an 8.5% fixed dividend rate, trading slightly above par [9]. - Redwood Trust offered $85 million in new exchange-traded senior notes due 2029 with a 9% fixed coupon, trading at $24.70 [9]. Market Trends - The article notes that many preferred stocks and exchange-traded debt securities have been trading below their par values, with a CDx3-compliant basket trading at a discount of approximately 4% [5][8]. - The tracking of past offerings that have dipped below par provides insights into market opportunities for investors [6][7]. Trading Symbols - Preferred stock trading symbols lack standardization across different brokers, which can lead to confusion for investors [5]. - The article provides a cross-reference table for preferred stock symbols used by various brokers [5]. Investor Insights - The article aims to keep fixed-income investors informed about new and past offerings, emphasizing the importance of monitoring securities that trade below their initial offering prices [8][14].

Group 1: StoneCo (STNE) - StoneCo is a financial services company specializing in payments software, serving approximately 3.5 million clients, primarily small and mid-sized firms [3] - The company's revenue has significantly increased from $821 million in 2021 to $2.3 billion in 2023, indicating strong business growth [4] - Analysts project a 32% increase in StoneCo's earnings per share this year to $1.28, with the stock currently trading at less than 10 times forward earnings [15] Group 2: Bank of Hawaii (BOH) - Bank of Hawaii is one of the largest banks in Hawaii, facing minimal competition with only seven banking institutions serving the state [6] - The stock has shown long-term growth, rising from $16 in 2000 to nearly $100 in 2020, and currently offers a generous dividend yield of 5.0% [7] - Despite a 21% year-to-date decline in 2024, the stock presents a buying opportunity due to its low valuation and high dividend yield [8] Group 3: Duckhorn Portfolio (NAPA) - Duckhorn Portfolio focuses on upscale and luxury wine brands, including Decoy, Goldeneye, Duckhorn, Calera, and Kosta Browne [19] - The company has faced challenges due to excess inventory and overplanting in the wine industry, leading to a significant drop in NAPA stock value since its 2021 IPO [9][20] - Duckhorn's recent acquisition of BrownForman's Sonoma-Cutrer wine business is expected to enhance its financial performance, with NAPA stock currently trading at 13 times forward earnings, presenting a bargain opportunity [21]

According to S&P Global Market Intelligence data, the bank's leverage ratio is 7.62%, which is lower than the peer banks' average of 9.93%. Raising further funds would bring that figure closer to its peers. It most likely provides reassurance to management and the board. It does so without diluting the current shareholders of the bank's common stock. Per NYCB management, "The completion of this major equity raise demonstrates the confidence these strategic investors have expressed in the turnaround currentl ...

EschCollection/DigitalVision via Getty Images The main advantage other 3.23% Territorial Savings Bank 2.93% Bank of Hawai'i 33.81% Central Pacific Bank 11.91% First Hawaiian Bank American Savings 33.79% Bank 14.33% 2023 Bank of Hawaii Q1 2024 Of course, such a non-diversified business model also has weaknesses, especially when Hawaii's coonomy experiences downtums. For example, the Maui wildfires have caused major psychological as well as economic consequences for island residents, and this has also impacte ...

A month has gone by since the last earnings report for Bank of Hawaii (BOH) . Shares have added about 1% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Bank of Hawaii due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Bank of Hawaii's Q1 Earnings Miss, Expenses F ...

Bank of Hawaii Corporation (BOH) reported first-quarter 2024 earnings per share (EPS) of 87 cents, missing the Zacks Consensus Estimate of 92 cents. The bottom line compared unfavorably with $1.14 earned in the year-ago quarter.BOH's quarterly results were affected by a decline in net interest income (NII), along with a drop in loans and deposit balances. Nonetheless, an improvement in non-interest income and a decline in expenses acted as a tailwind.The company’s net income came in at $36.4 million, down 2 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended March 31, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to Commission File Number: 1-6887 Depository Shares, Each Representing 1/40 Interest in a Share of 4.375% Fixed Rate Non-Cumulative Preferred Stock, Series A BOH.PRA New ...