Terms

Series

Series B

Liquidation Preference

$25.00

Rate Type

Fixed

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

August 1, 2029

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Debt Obligations Of Bank Of Hawaii Corporation And Bank Of Hawaii; Pari Passu With: Series A Preferred Stock, Parity Stock; Senior To: Common Stock, Junior Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Depositary Share Fraction

0.025

Prospectus Summary

Bank of Hawaii Corporation, a Delaware bank holding company headquartered in Honolulu, is offering depositary shares each representing a 1/40th interest in a share of its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, with a $25 liquidation preference per depositary share (equivalent to $1,000 per underlying preferred share). The coupon rate is to be set at pricing. The first call date is August 1, 2029, on any dividend payment date thereafter. Critically, dividends are non-cumulative: if the Board does not declare a dividend for any quarter, that payment is permanently lost and investors have no claim to recover it. The Series B Preferred Stock sits above common stock and other junior securities in the capital stack, and ranks on parity with the existing Series A Preferred Stock. It is structurally subordinated to all debt at both the holding company and Bank of Hawaii subsidiary levels — as a holding company obligation, it has no direct claim on the bank's assets ahead of the bank's own creditors and depositors. The issuer retains a regulatory capital call right allowing full redemption if the preferred loses Tier 1 capital treatment under Federal Reserve rules, which could force redemption at an inopportune time for investors. The effective yield at par will be determined at pricing. Dividends are payable quarterly on February 1, May 1, August 1, and November 1, beginning August 1, 2024. For individual investors, dividends from a bank holding company preferred typically qualify for the 15%/20% preferential qualified dividend income (QDI) rate; corporate holders may benefit from the dividends-received deduction (DRD), though neither is explicitly confirmed in the preliminary filing. The dividend stopper provision prevents the company from paying common stock dividends or repurchasing junior or parity securities if Series B dividends for the prior period have not been paid in full, providing a modest layer of protection for preferred holders.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Bank of Hawaii has not paid or set aside full dividends on the Series B Preferred Stock for the immediately preceding period, it cannot pay dividends on or repurchase its common stock or other junior securities, and cannot repurchase parity securities (including Series A Preferred Stock), subject to limited exceptions.

Other Preferreds from Bank of Hawaii Corporation

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 53 (Average)