Core Insights - The bank's leverage ratio is 7.62%, which is below the peer average of 9.93%, indicating a need for further capital to align with competitors [1] - New York Community Bancorp, Inc. (NYCB) successfully raised $1.05 billion from strategic investors, enhancing its balance sheet and liquidity position [2][8] - Bank of Hawaii (BOH) is seeking $165 million in capital due to challenges from elevated interest rates and significant unrealized bond losses [9] Financial Metrics - NYCB's net proceeds from the issuance of depositary shares will be nearly $162 million after deducting underwriting discounts and commissions [5] - Bank of Hawaii's common equity tier 1 ratio is 11.5% as of March 31, 2024, but drops to 4.4% when accounting for bond losses [6] - BOH's bond investments have declined over 14% in value due to rising interest rates since 2022 [10] Market Performance - Bank of Hawaii's shares have increased by 37.9% over the past year, outperforming the industry average rise of 30.8% [7] - Moody's has changed NYCB's rating view to 'review for upgrade' following the capital raise announcement [5]

Core Viewpoint - Bank of Hawaii (BOH) is currently undervalued with a low Price/TBV ratio of 1.80x compared to its 10-year average of 2.55x, indicating potential for price appreciation as the bank maintains a solid deposit base and high-quality loan portfolio [11][25][46]. Group 1: Financial Performance - Total deposits in Q1 2024 averaged a cost of 1.74%, lower than the median of regional banks, which is above 2.10% [15]. - The loan portfolio remains stagnant at $13.90 billion, with a loan-to-deposit ratio of only 68%, indicating no immediate need to attract new depositors with high yields [16][15]. - The bank's net interest margin (NIM) could improve in the coming quarters due to reinvestment opportunities from $3 billion in expected prepayments and maturities throughout 2024 [19][26]. Group 2: Market Position and Competitive Advantage - BOH controls one-third of total deposits in its market, benefiting from low competition where 97% of the deposit market is held by only five banks [12][11]. - The stability of deposits is reinforced by long-term relationships, with 53% of the deposit base having a relationship of over 20 years [11]. - The bank's conservative approach to lending, with only 27% of loans in commercial real estate, contributes to its high loan quality, as evidenced by a weighted average FICO score of 791 [8][11]. Group 3: Dividend and Valuation - The current dividend yield is approximately 5%, which is attractive to investors despite slow growth expectations [21][23]. - BOH's dividend has remained resilient during economic downturns, indicating the bank's ability to manage through challenging periods [20][23]. - Based on the current TBV per share of $30.83, the fair value is estimated at $78.61, suggesting significant upside potential from the current trading price of $55 [25][26]. Group 4: Economic and Operational Outlook - The outlook for the remainder of 2024 is flat, with expectations of high interest rates persisting, which may suppress credit demand [8][5]. - The bank's operations are heavily reliant on Hawaii's economy, which is vulnerable to downturns in tourism, potentially impacting its financial stability [41][44]. - Despite the challenges, the bank's management is focused on improving capital ratios and maintaining a strong deposit base, which is crucial for navigating economic uncertainties [30][32].

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 ...

Financial Data and Key Metrics Changes - Net interest income was $113.9 million in Q1 2024, a decrease of $1.8 million from the previous quarter [26] - Net income increased by $6 million to $36.4 million, with earnings per common share rising by $0.15 to $0.87 [30] - Return on common equity was reported at 11.2% [30] - The net interest margin (NIM) decreased by 2 basis points for the quarter but showed significant directional improvement [16] Business Line Data and Key Metrics Changes - The loan portfolio is predominantly secured against real estate, with 85% comprising residential mortgages or home equity, maintaining a weighted average loan-to-value (LTV) of 51% [45] - The commercial loan portfolio stands at $5.8 billion, representing 42% of total loans, with commercial real estate making up $3.7 billion [20] - Delinquencies remained stable at 0.31%, while criticized loans increased by 4 basis points to 1.97% [25] Market Data and Key Metrics Changes - Total visitor expenditures and arrivals in Hawaii were down 1.9% and 0.6% respectively year-to-date as of February, but excluding Maui, these figures showed growth of 6.4% and 7.6% [12] - The Japan market saw significant growth, with expenditures up 57.8% and arrivals up 84.3% from the previous year [12] - The industrial vacancy rate in Hawaii is at a historic low of 0.64%, while office vacancy is slightly above the 10-year average at 13.45% [46] Company Strategy and Development Direction - The company emphasizes its strong deposit franchise, which has allowed it to maintain a total cost of deposits below industry norms [41] - The strategy includes organic loan growth and a focus on core markets, with a conservative underwriting approach across various property types [19][48] - The company plans to continue managing expenses in a disciplined manner amid inflationary pressures, with expected normalized expenses in 2024 increasing by 1% to 2% from 2023 [55] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious outlook for consumer and commercial sectors due to the higher for longer interest rate environment [68] - The company expects continued pressure on deposit mix and pricing, leading to slightly higher overall deposit costs [28] - Management expressed confidence in the stability of the loan portfolio and the overall asset quality, despite some market uncertainties [50] Other Important Information - The company recognized $500,000 in severance expenses during the quarter, with adjusted core expenses at $103.2 million [29] - The effective tax rate for Q1 was 24.7%, with an expected rate of approximately 24.5% for 2024 [30] - The Board declared a dividend of $0.70 per common share for Q2 2024 [31] Q&A Session Summary Question: What is the outlook for net interest income and margin? - Management expects approximately $5 million in net interest income accretion per quarter from asset repricing, with a cautious view on margin trajectory due to deposit cost pressures [62][68] Question: How are deposit trends evolving? - Management noted a stabilization in average deposits around $20.5 billion, with a slowdown in the shift from non-interest bearing to interest-bearing deposits [76] Question: What is the company's approach to capital management? - The company is focused on growing capital rather than stock repurchase, reflecting caution in the current market environment [86]

disclosure this presentation, and other statements made by the Company in connection with it, may contain forward-looking statements concerning, among other things, forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. we have not committed to update forward-looking statements to reflect later events or circumstances highlights Corporation strong credit | --- | --- | |-----------|--------------- ...

| --- | --- | --- | --- | --- | |--------------------------------------------------------|-----------------------------------------------------|---------------|--------------------------------------|----------| | (1-year percentage change, except months of inventory) | March 31, \n2024 2023 | | December 31, \n2022 | 2021 | | Housing Trends (Single Family Oahu) | | | | | | Median Home Price | 4.4 % | (5.0 ) % | 11.6 % | 19.3 % | | Home Sales Volume (units) | 6.1 % | (26.3 ) % | (23.2 ) % | 17.9 % | | Months ...

For the quarter ended March 2024, Bank of Hawaii (BOH) reported revenue of $156.22 million, down 11.6% over the same period last year. EPS came in at $0.87, compared to $1.14 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $160.79 million, representing a surprise of -2.84%. The company delivered an EPS surprise of -5.43%, with the consensus EPS estimate being $0.92.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall S ...

Bank of Hawaii (BOH) came out with quarterly earnings of $0.87 per share, missing the Zacks Consensus Estimate of $0.92 per share. This compares to earnings of $1.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.43%. A quarter ago, it was expected that this bank holding company would post earnings of $0.89 per share when it actually produced earnings of $0.72, delivering a surprise of -19.10%.Over the last four quarters, ...