Bank of Hawaii: Improved Earnings, But Series B Preferred Is Still The Best Investment
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Jeremy LaKosh6.09K FollowersFollow5ShareSavePlay(6min)CommentsSummaryBank of Hawaii maintains a conservative loan-to-deposit ratio and stable external financing, supporting resilience amid interest rate shifts.Net interest margin has steadily improved, reaching 2.74% in Q1, while net interest income hit a cycle high despite sluggish loan and deposit growth.Risks include potential deterioration in loan performance and vulnerability to higher short-term rates from inflation shocks, given BOH's below-average net interest margin.I recommend BOH Series B preferred shares for their 7.6% yield, favoring them over common equity for near-term income and risk-adjusted returns.
Eric Broder Van Dyke/iStock Editorial via Getty Images Introduction Bank of Hawaii Corporation (BOH) is a regional bank with branches located in both Hawaii and the southwestern United States. Earlier today, the bank reported its first quarterThis article was written byJeremy LaKosh6.09K FollowersFollowOther writing on Substack: https://yieldstrategies.substack.com/I am currently focused on income investing through either common shares, preferred shares, or bonds. I will occasionally break away and write about the economy at large or a special situation involving a company I've been researching in. I target two articles per week for publication on Monday and Tuesday.About My Background: Bachelors in history/political science, Masters in Business Administration with a specialization in Finance and Economics. I enjoy numbers. I have been investing since 2000. Professionally, I am the CEO of an independent living retirement community in Illinois.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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.