The Final Verdict: Is Bank of Hawaii Corporation a Buy?

Despite stagnating growth, does Bank of Hawaii's strong credit quality and profitability justify a buy?

Jul 23, 2014 at 3:50PM

This is the final part in a three-part series breaking down Bank of Hawaii (NYSE:BOH). For Part 1, click here. For Part 2, click here.

It all boils down to this.

In the final section of this three-part series, Motley Fool contributor Jay Jenkins concludes his analysis of Bank of Hawaii. In Part 1 he broke down the bank's asset quality and risk culture. In Part 2, he dove deep into the bank's profitability. All that's left is the bank's growth and valuation.

We've established that the bank has the kind of credit culture that an investor can get excited about. Not only are non-performing assets well below peer average, the bank isn't throttling the income statement with an over-sized loan loss reserve either.

That conservative credit culture isn't a hindrance on profits either. The bank crushes its peers in both profits and return on equity. Up to this point, the Bank of Hawaii looks like the perfect model of regional and community banking. The company is boring; it's straightforward; it's old school.

But for value investors, being a well run bank is not enough. The market must give us an opportunity to buy shares at a price that has no where to go but up. And that brings us to the conclusion of this three part series. 

We know that the Bank of Hawaii is a top notch bank -- but is it under, over, or fairly valued?

For the shocking (or, perhaps, not so shocking) conclusion, check out the following video.

Bank of America + Apple? This device makes it possible.
recently recruited a secret-development "dream team" to guarantee that its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are even claiming that its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts that 485 million of these devices will be sold per year. But one small company makes this gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and to see Apple's newest smart gizmo, just click here!

For more bank and value investing analysis, like Jay on Facebook here! 

Jay Jenkins has no position in any stocks mentioned. The Motley Fool owns shares of Apple, Bank of American, and Bank of Hawaii and recommends Apple and Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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