Bank of Hawaii (BOH) Eyes Capital Raise Amid Bond Losses

Core Insights - The bank's leverage ratio is 7.62%, which is below the peer average of 9.93%, indicating a need for further capital to align with competitors [1] - New York Community Bancorp, Inc. (NYCB) successfully raised $1.05 billion from strategic investors, enhancing its balance sheet and liquidity position [2][8] - Bank of Hawaii (BOH) is seeking $165 million in capital due to challenges from elevated interest rates and significant unrealized bond losses [9] Financial Metrics - NYCB's net proceeds from the issuance of depositary shares will be nearly $162 million after deducting underwriting discounts and commissions [5] - Bank of Hawaii's common equity tier 1 ratio is 11.5% as of March 31, 2024, but drops to 4.4% when accounting for bond losses [6] - BOH's bond investments have declined over 14% in value due to rising interest rates since 2022 [10] Market Performance - Bank of Hawaii's shares have increased by 37.9% over the past year, outperforming the industry average rise of 30.8% [7] - Moody's has changed NYCB's rating view to 'review for upgrade' following the capital raise announcement [5]