Company: BOH
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0000950170-25-031193
Chunk: 285

Company: BANK OF HAWAII CORP
Filing Date: 2025-03-04
Form: 10-K
Item: Item 8
Chunk 285
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 property for branches, ATM locations, and office space with terms extending through 2052. Substantially all of the Company’s leases are classified as operating leases and therefore required to be recognized on the consolidated statements of condition as right-of-use (“ROU”) assets and corresponding lease liabilities. The Company has one existing finance lease for a portion of the Company’s principal offices with a lease term through 2052.  The following table represents the consolidated statements of condition classification of the Company’s ROU assets and lease liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated statements of condition. 

        (dollars in thousands)

        December 31, 2024

        December 31, 2023

        Lease Right-of-Use Assets
         
        Classification

        Operating Lease Right-of-Use Assets
         
        Operating Lease Right-of-Use Assets
         
        $
        80,165

        $
        86,110

        Finance Lease Right-of-Use Assets
         
        Premises and Equipment, Net

        551

        2,088

        Total Lease Right-of-Use Assets

        $
        80,716

        $
        88,198

        Lease Liabilities

        Operating Lease Liabilities
         
        Operating Lease Liabilities
         
        $
        88,794

        $
        94,693

        Finance Lease Liabilities
         
        Other Debt

        8,274

        10,190

        Total Lease Liabilities

        $
        97,068

        $
        104,883

       The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term.