Company: BOH
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000046195-25-000037
Chunk: 143

Company: BANK OF HAWAII CORP
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 8
Chunk 143
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 2025 and 2024, respectively. Servicing income is recorded in noninterest income under Mortgage Banking in the Company’s unaudited consolidated statements of income. The Company’s residential mortgage investor loan servicing portfolio is primarily comprised of fixed rate loans concentrated in Hawai‘i.

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For the three and nine months ended September 30, 2025 and 2024, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows:Three Months Ended September 30,Nine Months Ended September 30,(dollars in thousands)2025202420252024Balance at Beginning of Period$619 $668 $647 $678 Change in Fair Value Due to Payoffs(8)(8)(36)(18)Balance at End of Period$611 $660 $611 $660 For the three and nine months ended September 30, 2025 and 2024, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method was as follows:Three Months Ended September 30,Nine Months Ended September 30,(dollars in thousands)2025202420252024Balance at Beginning of Period$17,743 $19,286 $18,552 $20,201 Servicing Rights that Resulted From Asset Transfers52 157 231 316 Amortization(479)(532)(1,467)(1,606)Balance at End of Period$17,316 $18,911 $17,316 $18,911 Fair Value of Mortgage Servicing Rights Accounted for Under the Amortization MethodBeginning of Period$24,218 $25,326 $24,989 $26,173 End of Period$23,872 $25,265 $23,872 $25,265 The key data and assumptions used in estimating the fair value of the Company’s mortgage servicing rights as of September 30, 2025 and December 31, 2024, were as follows:September 30, 2025December 31, 2024Weighted-Average Constant Prepayment Rate 14.10%4.00%Weighted-Average Life (in years)9.059.28Weighted-Average Note Rate3.76%3.74%Weighted-Average Discount Rate 29.49%9.92%1Represents annualized loan