Bank of Hawaii offers two preferred share series with distinct yield and risk profiles, favoring Series A over Series B. BOH.PR.A trades at a significant discount to par, offers a ~6.9% yield, and benefits from strong dividend coverage and potential capital appreciation. BOH.PR.B, despite a higher coupon (~8%), trades above par, faces negative convexity, and offers an inferior yield-to-call (~6.78%), slightly less than Series A's current yield.
Bank of Hawaii (BOH) reported earnings 30 days ago. What's next for the stock?
Bank of Hawaii delivered robust Q1 results, with net interest income up 20% and loan loss provisions down over 40%. I see the Series A preferred shares, BOH.PR.A, as attractive, yielding nearly 6.8% due to a market discount. I am shifting to a 'hold' on BOH common stock, citing a valuation above 2x book and 3.6x tangible book value.
| Banks Industry | Financials Sector | James C. Polk CEO | XFRA Exchange | 062540109 CUSIP |
| US Country | 1,877 Employees | 29 May 2026 Last Dividend | 15 Dec 1997 Last Split | 7 Sep 1984 IPO Date |
Bank of Hawaii Corporation serves as the parent company for Bank of Hawaii, providing a wide array of financial services across Hawaii, Guam, and other Pacific Islands. Founded in 1897 with its headquarters in Honolulu, Hawaii, the company operates through three distinct segments: Consumer Banking, Commercial Banking, and Treasury and Others. Through these segments, Bank of Hawaii Corporation caters to a diverse clientele ranging from individuals and families to corporations and government entities, offering tailored financial solutions to meet their specific needs.
Addresses the financial needs of individuals and families, offering products such as checking, savings, and time deposit accounts. It also extends various loan types including residential mortgage loans, home equity lines of credit, automobile loans and leases, and small business loans, among other services. Beyond essential banking solutions, it offers investment, credit, and trust services for private and international clients, institutional investment advisory services, and brokerage offerings.
Focuses on meeting the demands of middle-market to large companies and government entities. This includes providing corporate banking services, commercial real estate loans, commercial lease financing, and auto dealer financing. It also offers deposit products tailored to the needs of these entities, in addition to specialized services such as international banking and merchant services.
Offers corporate asset and liability management services. This encompasses managing the company's interest rate risk and providing foreign exchange services, among other treasury functions, aimed at optimizing the company’s financial health and risk management strategies.