DA Davidson lowered the firm’s price target on Bank of Hawaii to $55 from $76 and keeps a Neutral rating on the shares. The bank’s first line of defense is its excellent deposit franchise, which is built to weather deposit pressure better than peers, but given the current market concerns, the strained capital analysis is a consideration, the analyst tells investors in a research note. The firm adds that if Bank of Hawaii was forced to recognize all AOCI and FV unrealized losses within the HTM portfolio, its current CET1 of 10.9% would decline to 3.7% – below the median "stressed" CET1 of 8.5% for its coverage universe. DA Davidson further notes however that the deposit base at Bank of Hawaii has been stable over the last week, and a normal pace of transactions suggests there is no panic with depositors to date.
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