Reported 8 months ago
Bank of Hawaii is raising $165 million in capital through depositary shares after suffering from large unrealized losses in its bond investments due to rising interest rates since 2022. The bank's profitability has declined, with key regulatory ratios falling below those of its peers. By raising more capital, the company aims to improve its leverage ratio to approach that of its peers and provide regulators with reassurance, without diluting existing common stock ownership. The move has raised questions among analysts about its impact on the bank's earnings and ability to address the impact of unrealized losses.
Source: YAHOO