Company: BOH
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000046195-25-000037
Chunk: 164

Company: BANK OF HAWAII CORP
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 8
Chunk 164
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 the Visa Class B restricted shares to Class A unrestricted common shares conversion rate swap agreements represent the amount owed by the Company to the buyer of the Visa Class B shares as a result of a reduction of the conversion ratio subsequent to the sales date. As of September 30, 2025 and December 31, 2024, the conversion rate swap agreements were valued at zero as reductions to the conversion ratio were not reasonably estimable by management. See Note 10 Derivative Financial Instruments for more information. The fair value of the makewhole agreements represents the amount owed by the Company to the buyer of the Visa Class B shares in the event Visa requires additional legal reserves to settle ongoing litigation. As of September 30, 2025, the makewhole agreements were valued at 

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zero as the likelihood of the Company being required to make a payment to the buyer is not reasonably estimable by management.The Company is exposed to credit risk if borrowers or counterparties fail to perform. The Company seeks to minimize credit risk through credit approvals, limits, monitoring procedures, and collateral requirements. The Company generally enters into transactions with borrowers of high credit quality and counterparties that carry high quality credit ratings.The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024.

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(dollars in thousands)Quoted Prices in Active Markets for Identical Assets or Liabilities(Level 1)Significant Other Observable Inputs(Level 2)Significant Unobservable Inputs(Level 3)TotalSeptember 30, 2025Assets:Investment Securities Available-for-SaleDebt Securities Issued by the U.S. Treasury and Government Agencies$138,100 $103,741 $— $241,841 Debt Securities Issued by States and Political Subdivisions— 66,041 — 66,041 Debt Securities Issued by U.S. Government-Sponsored Enterprises— 991 — 991 Debt Securities Issued by Corporations— 732,927 — 732,927 Collateralized Mortgage Obligations Issued by:Residential - Government Agencies or Sponsored Enterprises— 1,210,591 — 1,210,591 Commercial - Government Agencies or Sponsored Enterprises— 330,185 — 330,185 Commercial - Non Agency— 60,599 — 60,599 Total Collateralized Mortgage Obligations—