Company: BOH
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0000950170-25-031193
Chunk: 140

Company: BANK OF HAWAII CORP
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1B
Chunk 140
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        4,569

        Other

        29,279

        27,756

        Gross Deferred Tax Assets Before Valuation Allowance

        247,452

        260,892

        Valuation Allowance

        (9,740
        )

        (6,728
        )

        Gross Deferred Tax Assets After Valuation Allowance

        237,712

        254,164

        Deferred Tax Liabilities:

        Accelerated Depreciation

        (2,904
        )

        (8,513
        )

        Accrued Pension Cost

        (11,270
        )

        (11,270
        )

        Lease Transactions

        (20,234
        )

        (22,571
        )

        Operating Lease Liabilities

        (21,251
        )

        (22,826
        )

        Other

        (12,540
        )

        (14,368
        )

        Gross Deferred Tax Liabilities

        (68,199
        )

        (79,548
        )

        Net Deferred Tax Assets
         
        $
        169,513

        $
        174,616

       Both positive and negative evidence were considered by management in determining the need for a valuation allowance. Negative evidence included the uncertainty regarding the generation of capital gains in future years and restrictions on the ability to sell low-income housing investments during periods when carrybacks/carryforwards of capital losses are allowed. Positive evidence included capital gains in the carryback years. After considering all available evidence, management determined that a valuation allowance to offset deferred tax assets related to low-income housing investments that can only be used to offset capital gains was appropriate. Management determined that a valuation allowance was not required for the remaining 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