Company: BOH
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0000950170-25-031193
Chunk: 128

Company: BANK OF HAWAII CORP
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1B
Chunk 128
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 value of the Company’s mortgage servicing rights as of December 31, 2024 and 2023 were as follows: 

        December 31,

        2024

        2023

        Weighted-Average Constant Prepayment Rate 1

        4.00
        %

        4.06
        %

        Weighted-Average Life (in years)

        9.28

        9.44

        Weighted-Average Note Rate

        3.74
        %

        3.67
        %

        Weighted-Average Discount Rate 2

        9.92
        %

        9.48
        %
       
      1.Represents annualized loan prepayment rate assumption.2.Derived from multiple interest rate scenarios that incorporate a spread to a market yield curve and market volatilities.A sensitivity analysis of the Company’s fair value of mortgage servicing rights to changes in certain key assumptions as of December 31, 2024 and 2023 is presented in the following table. 

        December 31,

        (dollars in thousands)
         
        2024

        2023

        Constant Prepayment Rate

        Decrease in fair value from 25 basis points (“bps”) adverse change
         
        $
        (306
        )
         
        $
        (326
        )

        Decrease in fair value from 50 bps adverse change

        (606
        )

        (645
        )

        Discount Rate

        Decrease in fair value from 25 bps adverse change

        (282
        )

        (303
        )

        Decrease in fair value from 50 bps adverse change

        (558
        )

        (600
        )
       
       This analysis generally cannot be extrapolated because the relationship of a change in one key assumption to the change in the fair value of the Company’s mortgage servicing rights usually is not linear. Also, the effect of changing one key assumption without changing other assumptions is not realistic.

80

Note 6.  Premises and EquipmentThe components of the Company’s premises and equipment as of December 31, 2024 and 2023 were as follows: 

        (dollars in thousands)
         
        Cost

        AccumulatedDepreciation and Amortization

        Net Book Value

        December 31, 2024

        Premises
         
        $