Bank of Hawaii Q1 profits rise; preferred shares yield 6.8%, common shares valued high, hold advised.

Bank of Hawaii reported strong Q1 results with a 20% increase in net interest income and a 40% drop in loan loss provisions. The Series A preferred shares offer an attractive yield of nearly 6.8% due to a market discount, making them appealing for investors. However, the common stock is considered overvalued at more than twice its book value and 3.6 times its tangible book value, leading to a 'hold' recommendation. The bank's solid loan quality and stable dividends support the preferred shares, but the common shares appear expensive relative to their tangible value.