Bank Of Hawaii: Down The Fairway Results, But Valuation Sets A High Bar

There’s a lot to like about Bank of Hawaii (NYSE:BOH), and that’s been the case for some time. With concerted efforts to drive share gains through service quality bearing fruit in terms of deposit and loan share growth over the past five years, not to mention solid records of respectable core earnings growth and capital returns to shareholders, Bank of Hawaii has a lot of core holding attributes for a small bank.

Valuation is high here, though, and it takes pretty robust expectations to drive a compelling fair value. Given a shaky outlook for sentiment on bank stocks for at least a few more quarters and a pre-provision growth outlook over the next three years that doesn’t really stand out from the pack, I can’t say that Bank of Hawaii is a compelling idea for me here today.

 

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Bank Of Hawaii: Down The Fairway Results, But Valuation Sets A High Bar

Central Pacific Financial's Valuation Could Cause Some Trouble In Paradise

Grey skies, rain and what passes for cold weather around here may be why I was thinking about Hawaii and decided to look into Central Pacific Financial (NYSE:CPF), but the valuation there doesn't look too much like a tropical paradise. Central Pacific has done a lot to get itself on the right track from its flirtation with disaster during the credit crisis, but it is hard to see how management can drive the sort of growth it will need to make today's valuation seem cheap in a reasonable time frame.

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Central Pacific Financial's Valuation Could Cause Some Trouble In Paradise