{"data":{"id":"sw_9009dafe878f910f4c2b","slug":"bank-of-hawaii-s-4-375-series-a-preferred-trades-at-40-5-discount-double-peer-av","title":"Bank of Hawaii's 4.375% Series A Preferred Trades at 40.5% Discount, Double Peer Average","subheadline":"Despite being callable now, Bank of Hawaii's Series A preferred stock sits well below par, a gap more than twice the average seen across bank preferreds.","summary":"Bank of Hawaii's 4.375% Series A preferred trades near $14.87, a 40.5% discount to its $25 par value, more than double the average discount among bank preferreds, even though the issue has been callable since August 2026.","body":"Bank of Hawaii Corp's 4.375% Series A non-cumulative perpetual preferred stock, traded under BOH'A and related symbols including BOH-A and BOH.PRA, closed at $14.87 as of October 1, 2026, a 40.52% discount to its $25 liquidation preference. That gap, equal to roughly $10.13 per share, stands out against an average discount of 17.1% across a broader set of 96 bank preferred issues with a current yield, more than double the typical markdown investors are applying to similar instruments.\n\nThe discount is notable in part because of timing. The Series A preferred has been callable since August 1, 2026, meaning Bank of Hawaii could redeem the shares at par at its discretion. In practice, a callable preferred trading far below par signals that the market does not expect the issuer to exercise that option anytime soon, since a call at $25 would hand holders an immediate gain of more than two thirds of the current price, a 68.1% move to par based on the current quote. With the stock already past its call date and no redemption announced, the standard \"yield to call\" metric no longer applies in the usual sense, leaving the 7.36% current yield as the primary reference point for income-focused holders.\n\nWhy the wider discount may matter to investors following bank capital instruments comes down to the gap between what the security currently pays and what it would need to do to close that gap through price appreciation alone. A current yield of 7.36% on a 4.375% coupon reflects how far the price has fallen since the shares were issued at $25 in June 2021, a period that predates the sharp rise in interest rates that has pressured fixed rate perpetual preferreds broadly. Investors weighing such securities often look at discount size relative to peers as one input among several, though the depth of any individual discount does not by itself indicate the direction the price will move next.\n\nBackground on the issuer may help explain part of the gap. Bank of Hawaii Corp is a Delaware incorporated bank holding company headquartered in Honolulu, whose principal subsidiary traces its charter to 1897. The bank operates through Consumer Banking, Commercial Banking, and Treasury segments, concentrated in Hawaii, Guam, and other Pacific Island markets, a geographic footprint that is narrower than most mainland regional banks of comparable size. A September 26, 2026 article from Simply Wall St examined how investors might respond to Bank of Hawaii's common stock after a net interest income miss, a theme that can weigh on sentiment toward preferred shares issued by the same institution even though preferred dividends are not directly tied to net interest income performance. The company's common shares, trading under BOH, closed at $68.72 on October 1, down 0.29% on the day and within a 52-week range of $59.36 to $86.31.\n\nThis pattern first stood out in data tracked on Preferred Stock AI, a Madison Labs research site, which flagged the size of the Series A discount relative to the broader universe of bank preferreds it follows.\n\nThe wider market backdrop on the day in question showed risk appetite firming in some corners, with Bitcoin up 2.9% and several other major cryptocurrencies posting gains, while equity trading was mixed across sectors, as seen in moves such as Accenture's 15.8% jump alongside declines in names like Danaher and Amgen. None of that activity bears directly on bank preferred pricing, but it illustrates a backdrop in which fixed income instruments tied to regional bank balance sheets are being priced alongside a broader set of assets exhibiting varied sentiment.\n\nGoing forward, holders and prospective buyers of BOH'A are likely to watch several concrete developments: any formal redemption notice from Bank of Hawaii now that the shares are callable, the company's upcoming dividend declarations given the quarterly pay schedule on February, May, August, and November 1, and further commentary from the company on net interest income trends following the metric cited in recent coverage. The next scheduled ex-dividend date and any shift in the broader average discount among bank preferreds tracked across the 96-issue comparison set would also offer additional reference points for assessing whether the Series A's current gap to par persists, narrows, or widens from here.","source":{"name":"Preferred Stock AI","slug":"preferredstock-ai"},"category":"Preferred Stocks","article_type":"Data Story","license":"Free to republish, in full or in part, with attribution to Capital Data Wire and a link to the original article. No fees, registration, or permission required.","quality_score":81,"human_reviewed":false,"original_url":"https://preferredstock.ai/symbol/BOH-P-A","featured_image":null,"published_at":"2026-10-02T11:25:46.432795+00:00","updated_at":"2026-10-02T11:25:46.432795+00:00","is_demo":false,"attribution":"Via Capital Data Wire. Discovered via Preferred Stock AI.","attribution_html":"Via Capital Data Wire. Discovered via Preferred Stock AI."},"meta":{"demo_data":false}}