BANK OF HAWAII CORP Debt Disclosure
Note 10. Other Debt
The Company’s other debt as of December 31, 2023, and December 31, 2022, were as follows:
|
|
December 31, |
|
|||||
(dollars in thousands) |
|
2023 |
|
|
2022 |
|
||
Federal Home Loan Bank of Des Moines Advances |
|
$ |
550,000 |
|
|
$ |
400,000 |
|
Finance Lease Obligations |
|
|
10,190 |
|
|
|
10,294 |
|
Total |
|
$ |
560,190 |
|
|
$ |
410,294 |
|
As a member of the FHLB, the Bank may borrow funds from the FHLB in amounts up to 45% of the Bank’s total assets, provided the Bank is able to pledge an adequate amount of qualified assets to secure the borrowings. As of December 31, 2023, FHLB advances totaled $550.0 million with a weighted-average interest rate of 4.13% and maturity dates ranging from 2026 to 2028. As of December 31, 2023, the Company had an undrawn line of credit with the FHLB of $2.5 billion.
As of December 31, 2023, the Company had an undrawn line of credit with the FRB of $6.4 billion.
Finance lease obligations relate to office space at the Company’s headquarters. The lease began in 1993 and has a 60 year term.
As of December 31, 2023, the annual maturities of the Company's other debt, exclusive of finance lease obligations, were expected to be as follows:
(dollars in thousands) |
|
Amount |
|
|
2024 |
|
$ |
— |
|
2025 |
|
|
— |
|
2026 |
|
|
50,000 |
|
2027 |
|
|
400,000 |
|
2028 |
|
|
100,000 |
|
Total |
|
$ |
550,000 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Feb 29, 2024 | Showing above |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 29, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.