Bank Of Hawaii Corp. has a market cap of $2.24 billion; its shares were traded at around $46.36 with a P/E ratio of 12.7 and P/S ratio of 2.92. The dividend yield of Bank Of Hawaii Corp. stocks is 3.88%. Bank Of Hawaii Corp. had an annual average earning growth of 4.5% over the past 10 years.BOH is in the portfolios of Private Capital of Private Capital Management, Richard Aster Jr of Meridian Fund, David Dreman of Dreman Value Management, Chuck Royce of Royce& Associates, Bill Frels of Mairs & Power Inc. .
Highlight of Business Operations:For the third quarter of 2010, net income was $44.1 million, an increase of $7.6 million or 21% compared to the third quarter of 2009. Diluted earnings per share were $0.91 per share, an increase of $0.15 per share from the third quarter of 2009. Our higher net income for the third quarter of 2010 was primarily due to the following:
· We recognized a net gain of $2.6 million from the sale of our equity interest in a railcar leveraged lease in the third quarter of 2010. This was comprised of a $1.4 million pre-tax loss and a tax gain of $4.0 million.
The impact of these items was partially offset by a $10.3 million decrease in net interest income as a result of the decline in our loan and lease portfolio balances as well as lower yields from our investment securities portfolio. We also incurred $5.2 million in early termination costs related to the prepayment of $75.0 million in securities sold under agreements to repurchase in the third quarter of 2010.
For the first nine months of 2010, net income was $143.4 million, an increase of $39.8 million or 38% compared to the first nine months of 2009. Diluted earnings per share were $2.96 per share, an increase of $0.80 per share from the first nine months of 2009. Our higher net income for the first nine months of 2010 was primarily due to the following:
· Our Allowance for Loan and Lease Losses (the Allowance) was $147.4 million as of September 30, 2010, an increase of $3.7 million or 3% from December 31, 2009. The ratio of our Allowance to total loans and leases outstanding increased to 2.77% as of September 30, 2010, compared to 2.49% as of December 31, 2009. Based on the lower levels of net charge-offs of loans and leases for the last several quarters, our current loss projections, as well as economic and risk indicators, we did not increase our Allowance during the third quarter of 2010.
· We continued to increase our capital levels during the first nine months of 2010. Shareholders equity was $1.0 billion as of September 30, 2010, an increase of $143.6 million or 16% from December 31, 2009. We resumed share repurchases under our share repurchase program in the third quarter of 2010 and purchased 208,500 shares of our common stock at an average cost per share of $46.93 and a total cost of $9.8 million. Also, the fair value of our available-for-sale investment securities, net of tax, increased by $58.9 million since December 31, 2009.
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