Company: BOH
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0000950170-25-031193
Chunk: 142

Company: BANK OF HAWAII CORP
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1B
Chunk 142
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-for-sale investments securities. These contracts have been designated as hedging instruments to hedge the risk of changes in the fair value of the underlying loans or investment securities due to changes in interest rates. The related contracts are structured so that the notional amounts reduce over time to generally match the expected amortization of the underlying loan or investment security.  During the year ended December 31, 2024, the Company terminated several interest rate swap agreements with a total notional value of $1.7 billion. These interest rate swap agreements were designated as fair value hedging instruments. The termination of the interest rate swaps resulted in a loss of $20.2 million, which was allocated to the assets of the respective closed portfolios and will be amortized to interest income over the contractual terms of those assets using the effective interest method. In 2024, the Company amortized $0.4 million of these losses to interest income. The notional amounts and fair values of the Company’s derivative financial instruments as of December 31, 2024 and 2023 were as follows: 

        December 31, 2024

        December 31, 2023

        (dollars in thousands)
         
        Notional Amount

        Fair Value

        Notional Amount

        Fair Value

        Derivatives designated as hedging instruments

          Interest Rate Swap Agreements 1
         
        $
        2,000,000

        $
        2,738

        $
        3,000,000

        $
        (48,672
        )

        Derivatives not designated as hedging instruments

        Interest Rate Lock Commitments

        1,534

        34

        5,899

        148

        Forward Commitments

        3,517

        6

        8,583

        (105
        )

        Interest Rate Swap Agreements

        Receive Fixed/Pay Variable Swaps

        2,123,665

        (136,218
        )

        2,067,624

        (114,701
        )

        Pay Fixed/Receive Variable Swaps

        2,123,665

        136,125

        2,067,624

        114,542

        Foreign Exchange Contracts

        1,302

        (2
        )

        745

        —

        Conversion Rate Swap Agreement 2

        96,