Company: BOH
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000046195-25-000037
Chunk: 156

Company: BANK OF HAWAII CORP
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 8
Chunk 156
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 and available-for-sale investment securities. These contracts have been designated as hedging instruments to hedge the risk of changes in the fair value of the underlying loans or investment securities due to changes in interest rates. The related contracts are structured so that the notional amounts reduce over time to generally match the expected amortization of the underlying loan or investment security.During the three months ended September 30, 2025, the Company terminated several interest rate swap agreements with a total notional value of $1.0 billion. These interest rate swap agreements were designated as fair value hedging instruments. The termination of the interest rate swaps resulted in a loss of $3.8 million, which was allocated to the assets of the respective closed portfolios and will be amortized to interest income over the contractual terms of those assets using the effective interest method. 

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The notional amount and fair value of the Company’s derivative financial instruments as of September 30, 2025, and December 31, 2024 were as follows:September 30, 2025December 31, 2024(dollars in thousands)Notional AmountFair ValueNotional AmountFair ValueDerivatives designated as hedging instrumentsInterest Rate Swap Agreements 1$1,400,000 $(8,631)$2,000,000 $2,738 Derivatives not designated as hedging instrumentsInterest Rate Lock Commitments2,286 49 1,534 34 Forward Commitments3,250 (10)3,517 6 Interest Rate Swap AgreementsReceive Fixed/Pay Variable Swaps2,285,594 (71,345)2,123,665 (136,218)Pay Fixed/Receive Variable Swaps2,285,594 71,222 2,123,665 136,125 Conversion Rate Swap Agreements 2103,508  NA 96,466  NA Makewhole Agreements 346,901  NA 65,763  NA 1As of September 30, 2025 and December 31, 2024, the amounts presented in the table above exclude forward starting swaps with notional values of $600 million and $300 million, respectively, and fair values of $1.5 million and $4.7 million, respectively. These swaps are scheduled to begin between October 2025 and September 2026.2The conversion rate swap agreements were valued at zero as further