Bank of Hawaii Reports Strong Q2 Earnings, Analysts Adjust Price Targets Upward

Bank of Hawaii Corporation recently announced its second-quarter earnings, which surpassed expectations. The company reported adjusted earnings of 86 cents per share, matching market predictions. However, the quarterly sales total was slightly below estimates, coming in at $156.933 million, whereas expectations were set at $157.228 million. These results prompted a positive shift in sentiment among analysts.

Peter Ho, the Chairman and CEO, expressed satisfaction with the bank’s performance, noting that credit quality remains strong with non-performing assets at just 0.11% at the end of the quarter. Additionally, net charge-offs were recorded at 0.10%. Ho also highlighted that the company’s net interest margin saw a slight increase, indicating beneficial cash flow management. Despite challenges with deposits, which were down by 0.9%, and a modest decline in loans, the bank remains in a stable position.

Following the earnings announcement, analysts adjusted their price targets for Bank of Hawaii shares, which closed at $68.33 on Monday. The adjustments reflect an overall bullish sentiment regarding the bank’s financial health and strategic decisions, including a successful preferred stock offering completed in late June, aimed at further strengthening its capital position.