BOH - Bank of Hawaii: Funding Cost Pressure Continues To Ease
2024-03-22 13:42:25 ET
Summary
- Shares of Bank of Hawaii have registered healthy outperformance since my previous update last September, as top line headwinds continue to ease for the bank.
- Mix-shift and increasing deposit costs should continue to moderate, with a modest tailwind from asset repricing leading to much more stable margins and net interest income going forward.
- These shares look quite rich at around 2x tangible book value, and lacking further catalysts from earnings and dividend growth, the near-term outlook looks quite soft.
Bank of Hawaii ( BOH ) was still very much in the grip of funding cost pressure when I last covered it in September, with additional headwinds from weak loan growth and its skew to relatively low-yield fixed-rate assets further pressuring revenue and earnings....
Bank of Hawaii: Funding Cost Pressure Continues To Ease