BOH - Bank Of Hawaii: New Preferred Shares Offering 7.8% Yield

2024-07-09 23:56:55 ET

Summary

• Bank of Hawaii is a regional bank with branches outside of Hawaii, offering a new preferred share with a 7.8% yield.
• The bank has seen a decline in net interest income and net interest margin due to rising interest rates.
• Conservative loan and deposit growth management, along with potential risks related to loan concentration and uninsured deposits, are key factors to consider for investors.

Introduction

Bank of Hawaii ( BOH ) is a regional bank and serves as Hawaii’s second oldest bank. The bank does have a presence outside of the island state with branches in the American southwest. Bank of Hawaii also had a single preferred share (BOH.PA) that offered an uninspiring yield of just over 6%. Recently, the bank announced the issuance of a second preferred share (BOH.PB) with an 8% dividend. Since its IPO, the shares have traded at a premium, but I believe the new preferred shares are still attractive with a 7.8% yield....

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