Bank of Hawaii (BOH) is a regional financial services company providing personal and business banking services to clients in Hawaii and the West Pacific. (See Top Smart Score Stocks on TipRanks)
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Let’s take a look at the company’s latest financial performance, corporate updates, and newly added risk factor.
Q3 Financial Results
Bank Of Hawaii reported revenue of $168.2 million for Q3 2021, compared to $165.9 million in the same quarter last year. It posted EPS of $1.52, compared to $0.95 in the same quarter last year, and beat the consensus estimate of $1.33. It ended Q3 with a record $23 billion in total assets. (See Bank Of Hawaii stock charts on TipRanks).
The bank plans to distribute a quarterly cash dividend of $0.70 per share on December 14. The dividend will be paid to shareholders of record on November 30.
Corporate Updates
Bank Of Hawaii has expanded its board, increasing the number of directors to 14 from 13. The expansion followed the addition of Disneyland Resort and Aulani executive Elliot K. Mills as a new director and a member of Bank of Hawaii’s Human Resources and Compensation Committee, Nominating and Corporate Governance Committee, and Digital Advisory Committee.
The bank has raised about $180 million through equity offerings to fund its stock repurchase program and other corporate expenses. It has $93.1 million remaining on its current repurchase program. In Q3, BOH returned $20 million to shareholders in the form of share repurchases.
Risk factors
Bank Of Hawaii carries 26 risk factors, according to the new TipRanks Risk Factors tool. Since Q4 2020, the bank has updated its risk profile with one new risk factor in the Macro and Political category.
The bank tells investors that the effects of climate change, such as rising sea levels and extreme weather conditions, could adversely impact its operations, customers, and vendors. For example, the value of its collateral may decrease, and customers may struggle to repay their loans. It goes on to caution that increasing regulatory requirements in response to climate change could drive up its operating expenses, leading to unfavorable effects on its operations and financial condition.
The majority of Bank Of Hawaii’s risk factors fall under the Finance and Corporate category, with 35% of the total risks. That is below the sector average of 67%. The bank’s stock price has gained about 11% year-to-date.
Analysts’ Take
Following Bank Of Hawaii’s Q3 earnings report, Piper Sandler analyst Andrew Liesch reiterated a Hold rating on the stock but raised the price target to $94 from $89. Liesch’s new price target suggests 10.39% upside potential.
Consensus among analysts is a Hold based on 2 Holds. The average Bank Of Hawaii price target of $89 implies 4.52% upside potential to current levels.
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