Bank of Hawaii: Higher Yielding Series B Preferred Shares Still Best Option

  • Bank of Hawaii's Series B preferred shares offer a compelling 7.8% yield, outshining Series A despite trading slightly above par. Recent improvements in net interest margin and deposit growth signal operational strength, with a conservative loan-to-deposit ratio below industry average. Risks remain due to heavy exposure to residential and commercial real estate, and a relatively low loan loss allowance, making BOH common shares less attractive.