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10 Banks That Defy The Great Recession

Stocks in this article: USB STT NTRS FMER VLY CFR BOH

1. Bank of Hawaii

Company Profile

Shares of Bank of Hawaii closed at $44.64 Friday, down 2% year-to-date. The company was featured Tuesday as part of TheStreet's Best In Class series.

Based on a quarterly payout of 45 cents, the forward dividend yield on the shares is 4.03%.

Income Statement

Net income for the first half of 2010 was $99.3 million or $2.05 a share, increasing from $67 million or $1.40 a share in the first half of 2009. Bank of Hawaii's ROE for the first half of 2010 was 20.56%, by far the strongest earnings performance by that measure among U.S. bank and thrift holding companies with more than $10 billion in total assets. ROE exceeded 20% for all of the previous five years, except for 2009, when the company's return on equity was 16.42% according to SNL Financial.

Balance Sheet

Total assets were $12.9 billion as of June 30 and the nonperforming assets ratio was 0.44%. The ratio of net charge-offs to average loans for the first half of 2010 was 1.17%. The company's tier 1 leverage ratio was 7.09% as of June 30 and its total risk-based capital ratio was 18.19%. The tangible common equity ratio was 7.65%.

Stock Ratios

Shares trade for 2.2 times tangible book value according to SNL Financial and at a forward P/E of 13.3 based on the consensus earnings estimate of $3.35 for 2011. The forward P/E would fall to 11.8 based on the 2012 consensus earnings estimate of $3.79 a share.

Analyst Ratings

Out of nine analysts covering the company, two have buy ratings, six recommend holding the shares and one recommends investors sell the shares.

As discussed in Bank of Hawaii: How to Play It, Bank of Hawaii, with strong capital, an attractive dividend yield, an active stock buyback program and an amazing track record for earnings, is a worthy choice for investors looking to hold a quality bank name for many years.

>To see these stocks in action, visit the 10 Banks That Defy the Great Recession portfolio on Stockpickr.


-- Written by Philip van Doorn in Jupiter, Fla.

>To contact the writer of this article, click here: Philip van Doorn.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
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