Bank of Hawaii Q3 net income rises on higher net interest income

Overview

• US regional bank's Q3 net income and EPS rose slightly from prior quarter

• Company's net interest margin increased for tenth straight quarter, driven by asset repricing

• Company repurchased $20.2 mln in shares, buyback authorization raised by $200 mln

Outlook

• Company did not provide specific financial guidance for the upcoming quarter or full year in the press release

Result Drivers

• ASSET REPRICING - Co said net interest margin expansion was mainly due to fixed-rate assets being reinvested at higher rates

• HIGHER LOAN YIELDS - Co attributed increased loan yields to asset repricing and new loan production at higher rates

• NONINTEREST INCOME DECLINE - Co said lower gains on leased asset sales and seasonal factors reduced noninterest income

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "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 Corporation is $82.00, about 16.1% above its October 23 closing price of $70.60

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Oct 23 - Republic Bancorp Q3 net income rises on loan growth

• Oct 23 - First National Q3 net income rises on loan growth

• Oct 23 - First Capital Q3 net interest income rises on higher yields, asset balances

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(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.)