Post Earnings Coverage as Bank of Hawaii's Q1 Diluted EPS Beat Estimates
Upcoming AWS Coverage on Zions Bancorp Post-Earnings Results
LONDON, UK / ACCESSWIRE / April 27, 2017 / Active Wall St. announces its post-earnings coverage on Bank of Hawaii Corp. (NYSE: BOH). The Company reported its financial results for the first quarter fiscal 2017 (Q1 FY17) on April 24, 2017. The Honolulu, Hawaii-based bank's net income per diluted share increased on a year-over-year basis, outperforming market consensus forecasts. Register with us now for your free membership at:
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One of Bank of Hawaii's competitors within the Regional - Pacific Banks space, Zions Bancorp (NASDAQ: ZION), reported its Q1 2017 results after the NASDAQ close on April 24, 2017. AWS will be initiating a research report on Zions Bancorp in the coming days.
Today, AWS is promoting its earnings coverage on BOH; touching on ZION. Get our free coverage by signing up to:
http://www.activewallst.com/register/
Earnings Reviewed
In the three months ended on March 31, 2017, Bank of Hawaii's, net interest income was $109.87 million, rising from $103.02 million in Q1 FY16. Meanwhile, total noninterest income was marginally down to $55.92 million in Q1 FY17 from $56.21 million in the prior year's same quarter. Furthermore, the Company reported total noninterest expense of $88.57 million in Q1 FY17 compared to $87.39 million in Q1 FY16.
The bank holding Company reported net income of $51.18 million, or $1.20 per diluted share, in Q1 FY17, compared to $50.21 million, or $1.16 per diluted share in Q1 FY16. Net income per diluted share topped analysts' expectations of $1.08 per diluted share.
Performance Metrics
During Q1 FY17, Bank of Hawaii reported average loans and leases balance of $9.02 billion, rising from $7.94 billion in Q1 FY16. Average deposits also grew to $14.22 billion in Q1 FY 17 from $13.33 billion in Q1 FY16. During Q1 FY17, total earning assets grew to $15.76 billion from $14.87 billion in last year's comparable quarter. Furthermore, yield on these assets improved to 3.14% in Q1 FY17 from 3.13% in Q1 FY16.
In Q1 FY17, Bank of Hawaii's return on average assets stood at 1.26% compared to 1.30% in the previous year's corresponding period. The Company's return on average shareholders' equity was 17.63% in Q1 FY17 versus 17.88% reported in the year ago same quarter. The bank's efficiency ratio was 53.42% in Q1 FY17 and 54.88% in Q1 FY16. Moreover, Bank of Hawaii's net interest margin for the reported quarter improved three basis points to 2.89% from 2.86% in Q1 FY16.
As on March 31, 2017, the bank's Common equity Tier 1 capital ratio was 13.41%, compared with 13.85% as on March 31, 2016. During Q1 FY17, non-performing assets fell to $19.00 million from $22.02 million in Q1 FY16. During the quarter, allowance for loan and lease losses were $105.06 million, or 1.15% of loans and leases outstanding, versus $104.68 million, or 1.30% of loan and lease outstanding, in the last year's comparable quarter.
Segment Performance
For the reported period, Retail Banking net interest income came in at $65.16 million compared to $58.01 million in Q1 FY16. The segment's noninterest income also improved to $20.93 million in Q1 FY17 from $20.81 million in Q1 FY16. Additionally, the segment's net income increased to $19.35 million during Q1 FY17 from $15.01 million in the prior year's comparable quarter.
Commercial Banking's net interest income grew to $41.93 million in Q1 FY17 from $38.35 million in Q1 FY16. Meanwhile, noninterest income fell to $5.44 million in Q1 FY17 from $7.60 million the last year's same quarter. Furthermore, the segment's net income for the reported quarter stood at $18.95 million in Q1 FY17 compared to $22.65 million in Q1 FY16.
During Q1 FY17, the Investment Services segment reported net interest income of $6.65 million compared to $6.45 million in Q1 FY16. The segment's noninterest income grew to $14.55 million in Q1 FY17 from $14.02 million in Q1 FY16. Meanwhile, the segment's net income improved to $3.61 million in Q1 FY17 from $3.19 million in the previous year's comparable quarter.
Treasury and Other segment's noninterest income increased to $15.00 million in Q1 FY17 from $13.78 million in Q1 FY16. Additionally, the segment's net income stood at $9.27 million in Q1 FY17 compared to $9.36 million in Q1 FY16.
Dividend and Share Repurchase
In its earnings press release, Bank of Hawaii's Board of Directors declared quarterly cash dividend of $0.50 per share. The dividend will be payable on June 14, 2017, to shareholders of record at the close of business on May 31, 2017.
During Q1 FY17, the Company repurchased 114.0 thousand shares of its common stock for $$9.6 million and at an average price of $84.53 per share. The Company has $55.4 million remaining under its share repurchase program as on March 31, 2017. Furthermore, the Company has repurchased additional 31.3 thousand shares at an average cost of $79.97 per share from April 01 through April 21, 2017.
Stock Performance
At the closing bell, on Wednesday, April 26, 2017, Bank of Hawaii's stock rose slightly by 0.84%, ending the trading session at $83.25. A total volume of 260.70 thousand shares were traded at the end of the day, which was higher than the 3-month average volume of 241.24 thousand shares. In the last six months and previous twelve months, shares of the Company have surged 13.16% and 22.09%, respectively. The Company's shares are trading at a PE ratio of 19.68 and have a dividend yield of 2.40%. At Wednesday's closing price, the stock's net capitalization stands at $3.51 billion.
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