Company: BOH
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000046195-25-000037
Chunk: 182

Company: BANK OF HAWAII CORP
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 8
Chunk 182
---
 paid to counterparties for Visa Class B share conversion rate expense during the third quarter of 2025. In October 2025, we initiated the process of repositioning a portion of our AFS securities. As a result, we expect to realize a loss on the sale of certain securities during the quarter ending December 31, 2025 that is expected to range from $16 million to $17 million.

Other income increased by $0.8 million or 15.8% in the third quarter of 2025 compared to the same period last year, primarily due to an increase in customer derivative transactions during the quarter. Other income increased by $2.1 million or 14.6% for the first nine months of 2025 compared to the same period last year, primarily due to an increase in customer derivative transactions, a gain on sale of an other real estate owned (“OREO”) property, and the recovery of a previously charged-off bank-owned life insurance policy.

On October 1, 2025, we sold the economic interests of our merchant services portfolio. As a result of this transaction, we will recognize a one-time gain of approximately $18 million during the quarter ending December 31, 2025. The noninterest income generated from our merchant services portfolio during the three and nine months ended September 30, 2025 was $3.1 million and $8.7 million, respectively. These amounts were recognized in Fees, Exchange, and Other Service Charges. 

Annuity and insurance decreased by $0.4 million or 25.0% in the third quarter of 2025 compared to the same period last year, primarily due to the onboarding of our new broker-dealer service provider during the quarter.

Mortgage banking decreased by $0.3 million or 23.7% in the third quarter of 2025 compared to the same period last year, primarily due to a decrease in the amount of loans sold to third parties. 

49

Noninterest Expense

Table 4 presents the components of noninterest expense.

Noninterest ExpenseTable 4Three Months Ended September 30,Nine Months Ended September 30,(dollars in thousands)20252024Dollar ChangePercent Change20252024Dollar ChangePercent ChangeSalaries$40,428 $38,993 $1,435 3.7 %$118,314 $115,686 $2,628 2.3 %Incentive