Bank of Hawaii Series A: Cyclicality Risk Remains But Strong Long-Term Upside Potential

Summary

• Bank of Hawaii Corporation 4.375% DEP PFD A is heavily discounted and possesses a healthy dividend.
• The bank is quite solid for a regional, presenting exposure to high FICO score consumer loans and a performing commercial debt portfolio.
• NII margins have increased, largely due to lower funding costs and sustainable asset-level returns. Though not perpetual, the metrics set a strong solvency baseline.
• We might see credit spreads widen, and the economy soften in due course. That said, the existing discount is deep, slowly buying into weakness could be a good idea.
• Note that BOH.PR.A is non-cumulative and faces a 2026 call date.

anouchka

Bank of Hawaii Corporation 4.375% DEP PFD A (NYSE:BOH.PR.A) is covered within this article. If you've followed our content for an extended period, you'd probably be familiar with the fact that we've covered a series of discounted REIT preferred shares in

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.