Bank of Hawaii: The High-Yield Preferred Shares Offer The Best Value (Rating Downgrade)

Bank of Hawaii delivered robust Q1 results, with net interest income up 20% and loan loss provisions down over 40%. I see the Series A preferred shares, BOH.PR.A, as attractive, yielding nearly 6.8% due to a market discount. I am shifting to a 'hold' on BOH common stock, citing a valuation above 2x book and 3.6x tangible book value.