Bank of Hawaii Corporation has recently released its 10-K report, providing a detailed look into its financial performance and operations for the fiscal year ended December 31, 2023. The company, headquartered in Honolulu, Hawaii, operates as the bank holding company for Bank of Hawaii, offering various financial products and services in Hawaii, Guam, and other Pacific Islands. It operates through three segments: Consumer Banking, Commercial Banking, and Treasury and Other.
In the 10-K report, the Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) focuses on the fiscal 2024 and 2023 financial results, including year-to-year performance comparisons. The report also contains forward-looking statements, highlighting potential economic and business environment, credit quality, and other financial matters in future periods. These forward-looking statements are based on numerous assumptions and may be subject to risks and uncertainties, including regional economic conditions, changes in interest rates, and legislative and regulatory initiatives.
The report also delves into critical accounting estimates, particularly the reserve for credit losses. Bank of Hawaii Corporation provides detailed insights into the estimation process for credit losses, including the allowance for credit losses and the reserve for unfunded commitments. The company utilizes historical loss experience, qualitative adjustments, and a reasonable and supportable loss forecast period to determine the reserve for credit losses. The report also includes a sensitivity analysis, demonstrating the potential impact of changes in economic conditions and assumptions on the allowance estimate.
As a result of these announcements, the company's shares have moved -1.7% on the market, and are now trading at a price of $70.8. Check out the company's full 10-K submission here.
