First Hawaiian 'A Safe Haven,' According To KBW

Jacquelynne Chimera of Keefe, Bruyette & Woods mentioned that First Hawaiian Inc (NASDAQ: FHB) is the oldest bank in Hawaii and has “has the characteristics of a “safe haven” institution.”

Chimera initiated coverage of the company with a Market Perform rating and price target of $27.

Investment Opportunity

Pointing out that the stock had limited upside potential, the analyst also noted First Hawaiian offered an opportunity to invest in Hawaii.

“FHB is Hawaii’s fourth publicly traded bank, offering another possible entry point into a strong economy that provides the backdrop for competitive banking advantages, like low-cost deposits and deep customer loyalty,’ Chimera stated.

Related Link: Barclays: First Hawaiian Expensive, But Still A Buy

High Liquidity

The analyst expects the company’s liquidity to increase, given the likelihood of BNP Paribas SA (ADR) (OTCMKTS: BNPQY) divesting its large position in First Hawaiian over time.

This would eventually enable “a higher degree of independent capital management when FHB is no longer subject to Comprehensive Capital Analysis and Review,” Chimera said.

In addition, the analyst noted First Hawaiian’s credit had been clean during the previous cycle, with low commercial real estate exposure and high liquidity.

“We expect limited changes to operations following the bank’s status change,” the analyst added.

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