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.
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.
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