Company: BOH
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0000950170-25-031193
Chunk: 77

Company: BANK OF HAWAII CORP
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1B
Chunk 77
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23.8 million as of December 31, 2024, an increase of $0.1 million from the prior year. Our pension and postretirement benefit obligations and net periodic benefit cost are actuarially determined based on a number of key assumptions, including the discount rate, the expected return on plan assets, and the health-care cost trend rate. The accounting for pension and postretirement benefit plans reflect the long-term nature of the obligations and the investment horizon of the plan assets. 

The discount rate is used to determine the present value of future benefit obligations and the net periodic benefit cost. The discount rate used to value the present value of future benefit obligations as of each year-end is the rate used to estimate the net periodic benefit cost for the following year. Table 15 presents a sensitivity analysis of a 25 basis point change in discount rates to the pension and postretirement benefit plan’s net periodic benefit cost and benefit obligations:

    Discount Rate Sensitivity Analysis

    Table 15

    Impact of

    BaseDiscount Rate

    Discount Rate25 Basis Point Increase

    Discount Rate25 Basis Point Decrease

    (dollars in thousands)
     
    Pension Benefits

    Postretirement Benefits

    Pension Benefits

    Postretirement Benefits

    Pension Benefits

    Postretirement Benefits

    2024 Net Periodic Benefit Cost

    5.44
    %

    5.51
    %
     
    $
    18

    $
    (52
    )
     
    $
    (23
    )
     
    $
    52

    Benefit Plan Obligations as of December 31, 2024

    5.67
    %

    5.74
    %

    (1,412
    )

    (569
    )

    1,440

    583

    Estimated 2025 Net Periodic Benefit Cost

    5.67
    %

    5.74
    %

    16

    (49
    )

    (20
    )

    49

See Note 14 in Item 8. “Notes to the Consolidated Financial Statements” for more information on our pension and postretirement benefit plans.

Contractual Obligations

The Company has various contractual obligations that affect its cash flows and liquidity. Our non-cancelable operating leases and finance lease obligations are primarily related to branch premises, equipment, and a portion of the Company’s headquarters’ building with