Company: BOH
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0000950170-25-031193
Chunk: 89

Company: BANK OF HAWAII CORP
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1B
Chunk 89
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 based upon our historical repricing behavior over several interest rate cycles. The models’ forecast results are periodically tested against historical pricing and have been and may continue to be recalibrated.

We utilize net interest income simulations to analyze short-term income sensitivities to changes in interest rates. Table 21A presents, for the twelve months subsequent to December 31, 2024, and 2023, an estimate of the change in net interest income that would result from a gradual and immediate change in interest rates, moving in a parallel fashion over the entire yield curve, relative to the measured base case scenario. The base case scenario assumes the consolidated statements of condition and interest rates are generally unchanged. 

    Net Interest Income Sensitivity Profile

    Table 21A

    Impact on Future Annual Net Interest Income

    (dollars in thousands)
     
    December 31, 2024

    December 31, 2023

    Immediate Change in Interest Rates (basis points)

    +400
     
    $
    31,028

    5.6
    %
     
    $
    109,909

    21.6
    %

    +300

    25,281

    4.6

    85,238

    16.7

    +200

    18,783

    3.4

    59,228

    11.6

    +100

    10,393

    1.9

    31,961

    6.3

    -100

    (13,029
    )

    (2.3
    )

    (33,605
    )

    (6.6
    )

    -200

    (27,883
    )

    (5.0
    )

    (64,601
    )

    (12.7
    )

    -300

    (43,536
    )

    (7.8
    )

    (95,971
    )

    (18.8
    )

    -400

    (65,753
    )

    (11.8
    )

    (129,431
    )

    (25.4
    )

46

Based on our net interest income simulation as of December 31, 2024, net interest income is expected to increase as interest rates rise. Rising interest rates would drive higher rates on floating rate loans and investment securities,