Company: BOH
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0001628280-25-036240
Chunk: 244

Company: BANK OF HAWAII CORP
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 2
Chunk 244
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 our interest rate swaps.

Capital Management

We actively manage capital, commensurate with our risk profile, to enhance shareholder value. We also seek to maintain capital levels for the Company and the Bank at amounts in excess of the regulatory “well-capitalized” thresholds. Periodically, we may respond to market conditions by implementing changes to our overall balance sheet positioning to manage our capital position.

The Company and the Bank are each subject to regulatory capital requirements administered by the federal banking agencies and the Division of Financial Institutions, an agency of the State of Hawai‘i Department of Commerce and Consumer Affairs. Failure to meet minimum capital requirements could cause certain mandatory and discretionary actions by regulators that, if undertaken, would likely have a material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative and qualitative measures. These measures were established by regulation intended to ensure capital adequacy. As of June 30, 2025, the Company’s capital levels remained characterized as “well-capitalized.” There have been no conditions or events since June 30, 2025, that management believes have changed either the Company’s or the Bank’s capital classifications. The Company’s regulatory capital ratios are presented in Table 18 below.

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Table 18 presents our regulatory capital and ratios as of June 30, 2025 and December 31, 2024.

Regulatory Capital and RatiosTable 18(dollars in thousands)June 30, 2025December 31, 2024Regulatory Capital 1Total Common Shareholders’ Equity$1,398,107 $1,322,774 Add: CECL Transitional Amount— 2,375 Less: Goodwill, Net of Deferred Tax Liabilities28,746 28,746 Postretirement Benefit Liability Adjustments(22,931)(23,396)Net Unrealized Losses on Investment Securities 2(276,263)(319,993)Other(9,097)(9,097)Common Equity Tier 1 Capital1,677,652 1,648,889 Preferred Stock, Net of Issuance Cost336,101 336,101 Tier 1 Capital2,013,753 1,984,990 Allowable Reserve for Credit Losses150,128 148,634 Total Regulatory Capital$2,163,881 $2,133,624 Risk-Weighted Assets$14,