What the changes say
- Adds risks around AI use and the Parent’s ability to maintain dividends or stock repurchases.
- Real-estate exposure increased: residential mortgages reached 33.9% and commercial mortgages 29.9% of loans at year-end 2025.
- Banking-industry risk now emphasizes possible higher capital requirements and supervisory restrictions, while tax risk centers on the 2025 OBBBA.
- FDIC assessment language remains, but the prior $16.6 million special-assessment figure is no longer included.
What changed since the prior 10-K
New
- NewRisks Related to Common Stock
There can be no assurance that the Parent will continue to declare cash dividends
Dividends and stock repurchases may be reduced or halted based on capital availability, Board decisions, or unpaid preferred-stock dividends.
- NewGeneral Risk Factors
The development and use of AI present risks and challenges that may adversely impact our business
AI use could create regulatory, compliance, privacy, accuracy, bias, intellectual-property, and confidentiality risks for the Bank.
Dropped
- DroppedRisks Related to Common Stock
The Parent paid cash dividends of $112.3 million on common shares during 2024. In January 2025, the Parent’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Parent’s outstanding common shares
Reworded
- 76% rewrittenRisks Related to Macroeconomic and Political Conditions
Our loan portfolio is largely secured by real estate, and a downturn in the real estate market may adversely affect our results of operations
Residential mortgage exposure rose to $4.8 billion, or 33.9%, and commercial mortgage exposure to $4.2 billion, or 29.9%, of loans.
- 56% rewrittenRisks Related to Regulatory Changes
Changes in income tax laws and interpretations, or in accounting standards, could materially affect our financial condition or results of operations
The example changed from the Inflation Reduction Act to the 2025 OBBBA, including corporate tax changes mostly effective in 2026.
- 44% rewrittenRisks Related to Business Operations
Natural disasters and adverse weather in Hawaiʻi and the West Pacific may negatively affect real estate property values and our operations
No substantive change; the risk still covers Hawaiʻi and West Pacific disasters, property values, insurance access, loan defaults, and branch disruption.
- 38% rewrittenRisks Related to Macroeconomic and Political Conditions
Disruptions, instability and failures in the banking industry may negatively impact us
Removes named 2023 bank failures and adds potential new banking rules, supervisory restrictions, and higher capital requirements.
- 26% rewrittenGeneral Risk Factors
We have experienced increases in FDIC insurance assessments
Retains the FDIC assessment framework but removes the prior disclosure that the Company’s special-assessment share was approximately $16.6 million.
All 33 risk factors
Headings as the filing states them, in filing order.
Other
- 01There are a number of risks and uncertainties, including those material risk factors described below, that could negatively affect our business, financial condition, results of operations, liquidity and the trading price of our common stock
Risks Related to Macroeconomic and Political Conditions
- 02Our business is sensitive to regional business and economic conditions, in particular those of Hawaiʻi, Guam and other Pacific Islands
- 03Our loan portfolio is largely secured by real estate, and a downturn in the real estate market may adversely affect our results of operations76% rewritten
- 04A sustained period of high inflation or other high-cost economic environment could pose a risk to local economies and the financial performance of the Bank
- 05Climate change and the governmental responses to it could have a material adverse impact on the Bank and its customers
- 06Disruptions, instability and failures in the banking industry may negatively impact us38% rewritten
- 07Any reduction in defense spending by the federal government in the State of Hawaiʻi could adversely impact the economy in Hawaiʻi and the West Pacific
- 08Changes in interest rates could adversely impact our results of operations and capital
- 09Our allowance for credit losses may prove to be insufficient to absorb losses or appropriately reflect, at any given time, the inherent risk of loss in our loan portfolio
- 10Consumer protection initiatives and court decisions related to the foreclosure process affect our remedies as a creditor
- 11Changes in the capital markets could materially affect the level of assets under management and the demand for our other fee-based services
Risks Related to Common Stock
- 12The Parent’s liquidity is dependent on dividends from the Bank
- 13There can be no assurance that the Parent will continue to declare cash dividendsNew
Risks Related to Regulatory Changes
- 14Fiscal and monetary policy changes may significantly impact our profitability and liquidity
- 15Legislation and regulatory initiatives affecting the financial services industry, including new interpretations, restrictions and requirements, could detrimentally affect the Company’s business
- 16Changes in the capital, leverage, liquidity requirements for financial institutions could materially affect future requirements of the Company
- 17Changes in income tax laws and interpretations, or in accounting standards, could materially affect our financial condition or results of operations56% rewritten
Risks Related to Business Operations
- 18A failure in or breach of our operational systems, information systems, or infrastructure, or those of our third-party vendors and other service providers, may result in financial losses, loss of customers, or damage to our reputation
- 19An interruption or breach in security of our information systems or those related to merchants and third-party vendors, including as a result of cyber attacks, could disrupt our business, result in the disclosure or misuse of confidential or proprietary information, damage our reputation, or result in financial losses
- 20Our mortgage banking income may experience significant volatility
- 21Our mortgage loan servicing business may be impacted if we do not meet our obligations, or if servicing standards change
- 22Risks related to representation and warranty provisions may impact our mortgage loan servicing business
- 23Risks relating to residential mortgage loan servicing activities may adversely affect our results
- 24The requirement to record certain assets and liabilities at fair value may adversely affect our financial results
- 25Natural disasters and adverse weather in Hawaiʻi and the West Pacific may negatively affect real estate property values and our operations44% rewritten
General Risk Factors
- 26Competition may adversely affect our business
- 27Our future performance will depend on our ability to respond timely to technological change
- 28The development and use of AI present risks and challenges that may adversely impact our businessNew
- 29Negative public opinion could damage our reputation and adversely impact our earnings and liquidity
- 30We are subject to certain litigation, and our expenses related to this litigation may adversely affect our results
- 31Our performance depends on attracting and retaining key employees and skilled personnel to operate our business effectively
- 32The soundness of other financial institutions may adversely impact our financial condition or results of operations
- 33We have experienced increases in FDIC insurance assessments26% rewritten
Other Bank of Hawaii 10-Ks
- FY2024 10-K risk factors32 risks
Hawaiʻi, Guam and Pacific Island concentration makes local economies, real estate and defense spending central to performance.
Filed Mar 04, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.