Company: BOH
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0001628280-25-036240
Chunk: 178

Company: BANK OF HAWAII CORP
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 8
Chunk 178
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 assessment in the first quarter of 2025.

Total other expense increased by $1.2 million or 8.3% in the second quarter of 2025 and by $2.8 million or 10.0% for the first six months ended June 30, 2025, compared to the same periods in 2024, primarily due to an increase in operational losses, advertising expenses, and broker's charges.

49

Provision for Income Taxes

Table 5 presents our provision for income taxes and effective tax rates.

Provision for Income Taxes and Effective Tax RatesTable 5Three Months Ended June 30,Six Months Ended June 30,(dollars in thousands)2025202420252024Provision for Income Taxes$12,808 $11,224 $24,979 $23,197 Effective Tax Rates21.2 %24.8 %21.4 %24.8 %

The provision for income taxes was $12.8 million in the second quarter of 2025, an increase of $1.6 million compared to the same period in 2024. The effective tax rate for the second quarter of 2025 was 21.2%, a decrease from 24.8% for the same period in 2024. The lower effective tax rate in the second quarter of 2025 compared to the same period in 2024 was primarily due to a decrease in tax expense from discrete items and an increase in tax-exempt investment income. 

The provision for income taxes was $25.0 million in the first six months of 2025, an increase of $1.8 million compared to the same period in 2024. The effective tax rate for the first six months of 2025 was 21.4%, a decrease from 24.8% for the same period in 2024. The lower effective tax rate for the first six months of 2025 compared to the same period in 2024 was due to a decrease in tax expense from discrete items and an increase in tax-exempt investment income. 

50

Analysis of Unaudited Statements of Condition

Investment Securities

The carrying value of our investment securities portfolio was $7.6 billion and $7.3 billion as of June 30, 2025 and December 31, 2024, respectively. The increase was primarily due to the purchase of $517.1 million in available-for-sale investment securities during the six months