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Stocks•4 May 2026•

1 min read

Bank of Hawaii Common Stock Downgraded as Analysts Pivot to Preferred Shares

Key Facts

1Bank of Hawaii reported robust Q1 results with net interest income up 20% and loan loss provisions down over 40%.

2BOH common stock was downgraded to 'hold' citing valuation above 2x book value and 3.6x tangible book value.

3Series A preferred shares (BOH.PR.A) are viewed as attractive with a yield near 6.8% due to a market discount.

Bank of Hawaii (BOH) reported robust first-quarter results, highlighted by a 20% surge in net interest income and a significant 40% reduction in loan loss provisions. Despite these strong fundamentals, analysts have downgraded the bank's common stock to a 'Hold' rating due to stretched valuations. The common shares are currently trading at over 2x book value and 3.6x tangible book value, suggesting limited upside at current levels. Conversely, the Series A preferred shares (BOH.PR.A) are gaining traction as a more attractive value play for investors. These preferred shares offer a compelling yield near 6.8%, driven by a market discount relative to their par value. This tactical shift underscores a preference for high-yielding instruments over common equity that has reached full valuation following recent gains.