Company: BOH
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000046195-25-000037
Chunk: 57

Company: BANK OF HAWAII CORP
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 1
Chunk 57
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 (Recapture of) Credit Losses8,2181,239(2,057)7,400Net Interest Income (Expense) After Provision for Credit Losses284,900151,695(97,593)339,002Noninterest Income99,76821,2788,436129,482Salaries and Benefits61,49315,63696,745173,874Net Occupancy20,4761,34310,00231,821Other Noninterest Expense172,45938,499(94,476)116,482Noninterest Expense254,42855,47812,271322,177Income (Loss) Before Provision for Income Taxes130,240117,495(101,428)146,307Provision (Benefit) for Income Taxes33,15429,711(27,390)35,475Net Income (Loss)$97,086$87,784$(74,038)$110,832Total Assets as of September 30, 2024$8,308,389$5,952,321$9,538,464$23,799,1741Certain prior period information has been reclassified to conform to current presentation.

Note 10.  Derivative Financial Instruments

The Company uses derivative instruments to manage its exposure to market risks, including interest rate risk, and to assist customers with their risk management objectives. The Company designates certain derivatives as hedging instruments in a qualifying hedge accounting relationship, while other derivatives serve as economic hedges that do not qualify for hedge accounting.The Company enters into certain interest rate swap contracts that are matched to closed portfolios of fixed-rate residential mortgage loans 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