Company: BOH
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0001628280-25-036240
Chunk: 232

Company: BANK OF HAWAII CORP
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 2
Chunk 232
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 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 increased by $1.8 million or 3%, primarily due to higher monthly service fees, trust and asset management income, credit card commissions, annuity and insurance income, and debit card income.

Commercial Banking

Net income increased by $1.5 million or 5% in the second quarter of 2025 compared to the same period in 2024, primarily due to an increase in net interest income, partially offset by a decrease in noninterest income and an increase in noninterest expense. Net interest income increased by $3.1 million or 6%, primarily due to an increase in loan balances, primarily in commercial mortgages and allocated interest income due to increases in balances and spreads on interest bearing and savings deposits, partially offset by a reduction in noninterest bearing deposit balances. Noninterest income decreased by $0.5 million or 8%, primarily due to lower customer derivative program revenue, partially offset by an increase in merchant revenue. Noninterest expense increased by $0.9 million or 5%, primarily due to higher allocated administrative and support unit expenses, partially offset by lower salaries & benefits and broker charges related to the customer derivative program.

Net income increased by $3.5 million or 6% in the first six months of 2025 compared to the same period in 2024, primarily due to an increase in net interest income and noninterest income, partially offset by an increase in noninterest expense. Net interest income increased by $7.1 million or 7%, primarily due to an increase in loan balances, primarily in commercial mortgages, and an increase in allocated interest income due to increases in balances and spreads on interest bearing and savings deposits, partially offset by a reduction in noninterest bearing deposit balances. Noninterest expense increased by $1.9 million or 5%, primarily due to higher allocated administrative and support unit expenses, merchant processing fees, data services, and other professional services, partially offset by lower salaries & benefits.

Treasury and Other

Net loss decreased by $13.6 million or