BANK OF HAWAII CORPORATION (NYSE:BOH) Files An 8-K Other EventsItem 8.01OTHER EVENTS
On December 22, 2017 the Tax Cuts and Jobs Act (the “Act”) was signed into law, a tax reform bill which, among other items, reduces the current corporate federal income tax rate to 21% from 35%. The rate reduction is effective January 1, 2018.
Bank of Hawaii Corporation (the "Company") has concluded that the Act will cause the Company’s deferred taxes to be revalued. Deferred income taxes result from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through income tax expense.
Based on currently available information the Company estimates that it will reduce the value of its net deferred tax assets impacted by the rate change by approximately $3.6 million, which will be recorded as additional income tax expense during the fourth quarter of 2017. The Company’s revaluation of its deferred taxes are subject to further refinement as additional information becomes available and further analysis is completed.
About BANK OF HAWAII CORPORATION (NYSE:BOH)
Bank of Hawaii Corporation is a bank holding company that operates through its subsidiary, Bank of Hawaii (the Bank). The Bank provides a range of financial services and products primarily to customers in Hawaii, Guam and other Pacific Islands. The Company operates through four business segments: Retail Banking, Commercial Banking, Investment Services, and Treasury and Other. Its Retail Banking segment offers a range of financial products and services to consumers and small businesses. Its Commercial Banking segment offers products, including corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing and deposit products. Its Investment Services segment offers private banking, trust services, investment management and institutional investment advisory services. The Company’s Treasury and Other segment consists of corporate asset and liability management activities, including interest rate risk management and a foreign currency exchange business.