Company: BOH
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0000950170-25-031193
Chunk: 270

Company: BANK OF HAWAII CORP
Filing Date: 2025-03-04
Form: 10-K
Item: Item 8
Chunk 270
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 deferred tax assets because it is more likely than not that these assets will be realized through future reversals of existing taxable temporary differences, and there will be sufficient future taxable income exclusive of reversing temporary differences. As of December 31, 2024 and 2023, the Company carried a valuation allowance of $9.7 million and $6.7 million, respectively, related to the deferred tax assets established in connection with the low-income housing investments.Certain events covered by Internal Revenue Code Section 593(e) will trigger a recapture of base year reserves of acquired thrift institutions. The base year reserves of acquired thrift institutions would be recaptured if an entity ceases to qualify as a bank for federal income tax purposes. The base year reserves of thrift institutions also remain subject to income tax penalty provisions that, in general, require recapture upon certain stock redemptions of, and excess distributions to, shareholders. As of December 31, 2024, retained earnings included $18.2 million of base year reserves for which the deferred federal income tax liability of $4.8 million has not been recognized.

96

Effective Tax RateThe following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2024, 2023 and 2022: 

        2024

        2023

        2022

        (dollars in thousands)
         
        Amount
         
        Percent

        Amount
         
        Percent

        Amount
         
        Percent

        Statutory Federal Income Tax Expense and Rate
         
        $
        41,549

        21.00
        %
         
        $
        47,694

        21.00
        %
         
        $
        61,033

        21.00
        %

        State Taxes, Net of Federal Income Tax Benefit

        343

        0.17

        5,005

        2.20

        6,041

        2.08

        Tax credits

        Low-Income Housing Investments Amortization, Net of Tax Benefits

        5,731

        2.90

        2,797

        1.23

        5,118

        1.76

        Investment Tax Credits

        (1,041
        )
         
        (0.53
        )

        (845
        )