Bank of Hawaii Q2 net income rises on higher asset pricing

Overview

• US regional bank's Q2 net income and EPS rose from prior quarter

• Net interest margin expanded for ninth straight quarter, driven by asset repricing and higher loan yields

• Company repurchased $17 mln in shares during Q2

Outlook

• Company did not provide specific guidance for future quarters or the full year

Result Drivers

• ASSET REPRICING - Higher net interest income and margin were driven by fixed-rate assets rolling off and being reinvested at higher rates, as well as new loan production at higher current rates

• NONINTEREST INCOME - Growth in trust and asset management fees and commissions from annuity and insurance business contributed to higher noninterest income

• EXPENSE REDUCTION - Noninterest expense declined, reflecting a net benefit from forfeited restricted stock awards this quarter versus higher stock-based and separation expenses in the prior quarter

Company press release: ID:nBw81lbQja

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Bank of Hawaii Corp is $87.00, about 3.6% above its July 24 closing price of $83.97

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• July 24 - First Hawaiian Q2 net income rises, net interest margin improves

• July 24 - First Capital Q2 profit rises on higher interest income

• July 24 - Logansport Financial Q2 profit rises on stronger net interest income

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)