Company: BOH
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0000950170-25-031193
Chunk: 208

Company: BANK OF HAWAII CORP
Filing Date: 2025-03-04
Form: 10-K
Item: Item 7
Chunk 208
---
14
    %

    Ratio of Non-Performing Assets and Accruing   Loans and Leases Past Due 90 Days or More to   Total Loans and Leases and Foreclosed Real Estate

    0.20
    %

    0.13
    %

    0.13
    %

    0.22
    %

    0.24
    %

Table 17 presents the activity in Non-Performing Assets (“NPAs”) for 2024:

    (dollars in thousands)
     
    Table 17

    Balance at Beginning of Year
     
    $
    11,747

    Additions

    14,664

    Reductions

    Payments

    (3,207
    )

    Return to Accrual Status

    (2,192
    )

    Charge-offs/Write-downs

    (1,712
    )

    Total Reductions

    (7,111
    )

    Balance at End of Year
     
    $
    19,300

NPAs consist of non-accrual loans and leases and foreclosed real estate. Changes in the level of non-accrual loans and leases typically are caused by loans and leases that reach a specified past due status, offset by reductions for loans and leases that are charged-off, paid down, sold, transferred to foreclosed real estate, or are no longer classified as non-accrual because they have returned to accrual status.

Commercial and Industrial non-accrual loans increased by $4.6 million from the prior year, primarily due to the addition of three loans during 2024. The three loans added during 2024 were attributed to one primary borrower. 

41

Residential mortgage non-accrual loans increased by $2.1 million or 72% from the prior year. As of December 31, 2024, our residential mortgage non-accrual loans were comprised of 19 loans with a weighted average current loan-to-value of 77%.

Foreclosed real estate represents property acquired as the result of borrower defaults on loans. Foreclosed real estate is recorded at fair value, less estimated selling costs, at the time of foreclosure. On an ongoing basis, properties are appraised as required by market conditions and applicable regulations. Foreclosed real estate was $2.7 million as of December 31, 2024.

If interest due on the balances of all non-