Company: BOH
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000046195-25-000037
Chunk: 45

Company: BANK OF HAWAII CORP
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 1
Chunk 45
---
 For the three and nine months ended September 30, 2025 and 2024, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method was as follows:Three Months Ended September 30,Nine Months Ended September 30,(dollars in thousands)2025202420252024Balance at Beginning of Period$17,743 $19,286 $18,552 $20,201 Servicing Rights that Resulted From Asset Transfers52 157 231 316 Amortization(479)(532)(1,467)(1,606)Balance at End of Period$17,316 $18,911 $17,316 $18,911 Fair Value of Mortgage Servicing Rights Accounted for Under the Amortization MethodBeginning of Period$24,218 $25,326 $24,989 $26,173 End of Period$23,872 $25,265 $23,872 $25,265 The key data and assumptions used in estimating the fair value of the Company’s mortgage servicing rights as of September 30, 2025 and December 31, 2024, were as follows:September 30, 2025December 31, 2024Weighted-Average Constant Prepayment Rate 14.10%4.00%Weighted-Average Life (in years)9.059.28Weighted-Average Note Rate3.76%3.74%Weighted-Average Discount Rate 29.49%9.92%1Represents annualized loan prepayment rate assumption.2Derived from multiple interest rate scenarios that incorporate a spread to a market yield curve and market volatilities.A sensitivity analysis of the Company’s fair value of mortgage servicing rights to changes in certain key assumptions as of September 30, 2025 and December 31, 2024, is presented in the following table.(dollars in thousands)September 30, 2025December 31, 2024Constant Prepayment RateDecrease in fair value from 25 basis points (“bps”) adverse change$(295)$(306)Decrease in fair value from 50 bps adverse change(583)(606)Discount RateDecrease in fair value from 25 bps adverse change(271)(282)Decrease in fair value from 50 bps adverse change(536)(558)This analysis generally cannot be extrapolated because the relationship