Company: BOH
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0001628280-25-036240
Chunk: 185

Company: BANK OF HAWAII CORP
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 8
Chunk 185
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 13(dollars in thousands)June 30, 2025December 31, 2024Dollar ChangeFederal Home Loan Bank of Des Moines Advances$550,000 $550,000 $— Finance Lease Obligations8,226 8,274 (48)Total$558,226 $558,274 $(48)

Analysis of Business Segments

Our business segments are defined as Consumer Banking, Commercial Banking, and Treasury and Other.

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Table 14 summarizes net income from our business segments. Additional information about segment performance is presented in Note 9 Business Segments to the unaudited Consolidated Financial Statements.

Business Segment Net IncomeTable 14Three Months Ended June 30,Six Months Ended June 30,(dollars in thousands)2025202420252024Consumer Banking$29,737 $31,289 $59,189 $64,093 Commercial Banking30,694 29,213 62,383 58,855 Total60,431 60,502 121,572 122,948 Treasury and Other(12,794)(26,419)(29,950)(52,474)Consolidated Total$47,637 $34,083 $91,622 $70,474 

Consumer Banking

Net income decreased by $1.6 million or 5% in the second quarter of 2025 compared to the same period in 2024, primarily due to a decrease in net interest income. Net interest income decreased by $2.9 million or 3%, primarily due to lower deposit spreads on higher deposit balances.

Net income decreased by $4.9 million or 8% in the first six months of 2025 compared to the same period in 2024, primarily due to a decrease in net interest income, coupled with an increase in noninterest expense and the provision for credit losses. This was partially offset by an increase in noninterest income. Net interest income decreased by $4.2 million or 2%, primarily due to lower deposit spreads on higher deposit balances, as well as lower loan balances. Noninterest expense increased by $3.5 million or 2%, primarily due to higher operational losses, salaries and benefits, and online banking platform costs, and allocated administrative and support unit costs. The provision for credit losses increased by $0.8 million or 15%, primarily due to higher net charge-offs in the auto loan portfolio. Noninterest income