Company: BOH
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000046195-25-000037
Chunk: 225

Company: BANK OF HAWAII CORP
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 2
Chunk 225
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Other Debt0.0 0.1 0.1 0.1 (0.1)0.0 Total Change in Interest Expense2.8 (14.7)(11.9)6.2 (36.0)(29.8)Change in Net Interest Income$6.7 $13.0 $19.7 $15.9 $32.2 $48.1 

1The change in interest income or expense due to both rate and volume has been allocated between the factors in proportion to the relationship of the absolute dollar amounts of the change in each.

Net Interest Income

Net interest income is affected by the size and mix of our balance sheet components as well as the spread between interest earned on assets and interest paid on liabilities. Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.

The average balance of our earning assets for the three and nine months ended September 30, 2025 increased by $624.6 million or 3% and $452.4 million or 2%, respectively, compared to the same periods in 2024. These increases were due to increases in the average balances of available-for-sale investment securities and commercial mortgage loans. As compared to the same periods last year, yields on our investment securities portfolio increased by 13 and 9 basis points during the three 

48

and nine months ended September 30, 2025, respectively, primarily due to the amortization of lower yielding investments being reinvested into new investments at higher current interest rates. This increase was partially offset by lower income earned from interest rate swaps that hedge a portion of our available-for-sale (“AFS”) securities portfolio. As compared to the same periods last year, yields on our loan and lease portfolio increased by 4 and 6 basis points during the three and nine months ended September 30, 2025, respectively, primarily due to higher rates on home equity lines and automobile loans originated, partially offset by the payoffs of higher yielding commercial mortgage and commercial and industrial loans.

The average balance of our interest-bearing liabilities for the three and nine months ended September 30, 2025 increased by $430.1 million or 3% and $342.7 million or 2%, respectively, compared to the same periods in 2024 primarily due to an increase in savings deposits. As compared to the same periods last year, the cost of our interest-bearing