Core Viewpoint - Bank of Hawaii's stock has underperformed compared to the S&P 500, raising questions about its investment potential and risk profile [1] Group 1: Financial Performance - Bank of Hawaii's net interest income has plateaued over the last five years, showing no growth compared to the broader banking industry [4] - The bank's net interest margin (NIM) averaged a low 2.3% over the past two years, indicating weak profitability of its loan book [6] - Tangible book value per share (TBVPS) has seen a modest annual growth of 1.4% over five years, but it accelerated to 10.7% annually in the last two years, increasing from $28.99 to $35.56 per share [8] Group 2: Valuation and Market Position - Bank of Hawaii's shares are trading at 1.7 times forward price-to-book (P/B) ratio, suggesting that the stock is priced with a lot of positive expectations already factored in [9] - Despite not being a poor business, Bank of Hawaii does not meet the quality investment criteria, and there may be better opportunities available in the market [9]

Core Insights - Preferred Bank (PFBC) is expected to report quarterly earnings of $2.57 per share, reflecting a year-over-year increase of 4.5% [1] - Anticipated revenues for the quarter are projected at $72.3 million, showing no change compared to the same quarter last year [1] Earnings Projections - There have been no revisions in the consensus EPS estimate over the last 30 days, indicating stability in analysts' forecasts [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong link between earnings estimate trends and short-term stock price movements [3] Key Metrics Forecast - Analysts estimate a 'Net Interest Margin' of 3.8%, down from 4.1% in the same quarter last year [5] - The 'Efficiency Ratio' is expected to be 30.3%, slightly improved from 30.6% year-over-year [5] - 'Total non-performing loans' are projected to reach $37.12 million, significantly higher than the $19.36 million reported in the previous year [5] Asset and Income Estimates - The estimated 'Average Interest-Earning Assets' is $7.19 billion, up from $6.68 billion in the same quarter last year [6] - Analysts predict 'Total non-performing assets' will likely be $49.68 million, compared to $34.44 million in the same quarter last year [6] - The consensus estimate for 'Net interest income before provision for credit losses' is $68.92 million, slightly up from $68.85 million year-over-year [7] - 'Total noninterest income' is expected to be $3.60 million, compared to $3.46 million in the same quarter last year [7] Market Performance - Shares of Preferred Bank have decreased by 1.9% over the past month, contrasting with a 1% increase in the Zacks S&P 500 composite [7] - With a Zacks Rank 4 (Sell), PFBC is anticipated to underperform the overall market in the near future [7]

Core Insights - FB Financial (FBK) is projected to announce quarterly earnings of $1.03 per share, reflecting a year-over-year increase of 19.8% [1] - Revenues are expected to reach $168.86 million, marking an 88.6% increase from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has remained unchanged over the past 30 days, indicating analysts have not revised their projections [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [3] Key Financial Metrics - Analysts project a 'Net Interest Margin' of 3.8%, up from 3.6% a year ago [5] - The estimated 'Core Efficiency Ratio' is 54.9%, a significant improvement from 85.1% reported in the same quarter last year [5] - 'Average Earning Assets' are expected to be $14.82 billion, compared to $11.95 billion in the same quarter of the previous year [5] Income Projections - 'Mortgage banking income' is projected at $13.70 million, up from $11.55 million in the same quarter last year [6] - 'Net interest income (tax-equivalent basis)' is expected to be $142.07 million, compared to $106.63 million a year ago [6] - The consensus estimate for 'Net Interest Income' stands at $139.71 million, an increase from $106.02 million in the same quarter last year [7] Additional Metrics - 'Service charges on deposit accounts' are estimated at $3.43 million, slightly up from $3.38 million a year ago [7] - 'Investment services and trust income' is projected to reach $4.04 million, compared to $3.72 million in the same quarter last year [8] Stock Performance - FB Financial shares have increased by 11.4% in the past month, outperforming the Zacks S&P 500 composite, which rose by 4% [8] - FBK holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [8]

Core Viewpoint - SouthState Corporation (SSB) has shown strong performance with an 11.6% increase in shares over the past three months, outperforming the industry growth of 6.8% and its peers [1][8] Financial Performance - The Federal Reserve's recent interest rate cuts are expected to ease funding pressures and stabilize deposit costs, benefiting banks like SouthState [4] - SouthState's net interest income (NII) has achieved a five-year compound annual growth rate (CAGR) of 22.9% through 2024, with continued improvement in the first half of 2025 [5] - The net interest margin (NIM) improved in the first half of 2025 due to balance sheet optimization, despite a decline in 2024 from elevated funding costs [5][6] - Revenue growth is projected to continue, with estimates suggesting a year-over-year increase of 51.93% for 2025 and 4.76% for 2026 [9][10] Growth Strategies - SouthState has expanded its market presence through acquisitions, including the significant acquisition of Independent Bank in January 2025, which increased total assets to $65.1 billion [10][11] - The company has maintained strong organic growth, with a revenue CAGR of 21.5% over the past five years, continuing into the first half of 2025 [6][7] Liquidity and Shareholder Returns - SouthState has a solid liquidity position, with total debt of $1.2 billion against cash and cash equivalents of $3.5 billion as of June 30, 2025 [12] - The company has consistently raised dividends since 2020, with a recent hike of 11.1% in July 2025, resulting in a payout ratio of 26% and a five-year annualized dividend growth of 3.30% [13][16] Risks and Concerns - Elevated non-interest expenses have shown a CAGR of 16.6% from 2019 to 2024, driven by various operational costs [18] - The loan portfolio is heavily concentrated in real estate, with 72.9% of loans having real estate as collateral, increasing exposure to commercial real estate risks [20][21] Valuation - SouthState's trailing price-to-book (P/B) ratio of 1.15X is below the industry average of 1.88X, indicating that shares are trading at a discount compared to peers [23]

Core Insights - Corporate loan growth remains subdued, but public sector banks (PSBs) are expected to see robust loan growth driven by retail, agriculture, and MSME segments [1][2] Loan Growth - Most PSBs are projected to report strong loan growth, particularly in the RAM (retail, agriculture, and MSME) sectors, while corporate loan demand has shifted towards mutual funds and capital markets [2] - Bank of Baroda (BoB) anticipates a quarterly loan growth of approximately 4%, while Punjab National Bank (PNB), Canara Bank, and Indian Bank expect around 2.5% growth [2][3] - State Bank of India (SBI) is likely to achieve close to 3% growth, whereas Union Bank of India is expected to lag behind sector averages [3] Margins and Asset Quality - The outlook for net interest margins (NIM) indicates a moderate decline, with PNB expecting flat NIM, BoB anticipating stable reported NIM but a potential slip in core NIM by seven basis points, and Indian Bank's margins possibly declining by under 10 basis points [3] - Canara Bank may face higher pressure due to lower current and savings account (CASA) ratios, while SBI projects a five basis point drop in margins [4] - Asset quality across state-owned banks is expected to remain stable, with no major slippages anticipated; SBI, BoB, and Indian Bank are expected to see improved slippage ratios [4][5] Return on Assets (RoA) - Sustainability of return on assets (RoA) above 1% remains a concern for investors, but key banks like SBI and BoB are positioned to maintain this benchmark due to stronger core income [6] - PNB may experience an expansion in RoA due to lower tax outgo [6] Performance Comparison - The PSU Bank Index has outperformed the private bank index by nearly 15% over the past six months, driven by stronger loan growth and asset quality performance [7] Revenue Trends - Net interest income (NII) growth has been under pressure for both state-owned and private banks, with PSBs experiencing flat to negative NII growth year-on-year in the first quarter of FY26 [8]

Core Viewpoint - The Charles Schwab Corporation (SCHW) has significantly reduced its high-cost supplemental funding balances, leading to improved net interest revenues (NIR) and net interest margin (NIM) in 2025 [1][2][3]. Group 1: Financial Performance - By the end of June 2025, SCHW's supplemental funding balance decreased by 70% to $27.7 billion from a peak of $97.1 billion in May 2023 [1]. - In the first half of 2025, SCHW's NIR increased by 25.9% year over year to $5.53 billion, aided by lower interest expenses and growth in bank lending [2]. - The NIM for SCHW rose to 2.59% in the first half of 2025, up from 2.03% in the same period the previous year [2]. Group 2: Future Projections - SCHW's NIR is projected to increase by 24.7% year over year in 2025, driven by the continued reduction in supplemental funding balances and higher interest rates [3]. - Management anticipates NIM to be between 2.65% and 2.75% by the end of 2025, with expectations for fourth-quarter NIM to approach 2.80% [3]. Group 3: Peer Comparison - Robinhood Markets, Inc. (HOOD) reported a 19.4% increase in NIR year over year in 2024 and a 119% increase in 2023, with a 20% rise in the first half of 2025 to $647 million [4]. - Interactive Brokers (IBKR) saw a 12.7% increase in net interest income year over year in 2024 and a 67.5% increase in 2023, with a 5.9% rise to $1.63 billion in the first half of 2025 [5]. Group 4: Stock Performance and Valuation - SCHW's shares have increased by 31.2% this year, outperforming the industry growth of 20.7% [6]. - SCHW trades at a forward price-to-earnings (P/E) ratio of 19.10, which is significantly higher than the industry average of 14.43 [8]. - The Zacks Consensus Estimate indicates earnings growth of 41.2% for 2025 and 17.7% for 2026, with upward revisions in earnings estimates over the past 30 days [9].