Company: BOH
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0000950170-25-031193
Chunk: 60

Company: BANK OF HAWAII CORP
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1B
Chunk 60
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    Total Interest-Bearing Deposits

    28.7

    89.3

    118.0

    Funds Purchased

    (1.0
    )

    0.1

    (0.9
    )

    Short-Term Borrowings

    (6.0
    )

    0.3

    (5.7
    )

    Securities Sold Under Agreements to Repurchase

    (15.2
    )

    3.5

    (11.7
    )

    Other Debt

    (15.4
    )

    (0.5
    )

    (15.9
    )

    Total Change in Interest Expense

    (8.9
    )

    92.7

    83.8

    Change in Net Interest Income
     
    $
    1.6

    $
    (30.2
    )
     
    $
    (28.6
    )

1.The 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 balances of our earning assets decreased by $532.8 million or 2% in 2024 compared to the prior year, primarily due to cashflows from the portfolio being used to reduce our interest-bearing liabilities. Yields on our investment securities portfolio increased by 4 basis points, primarily due to income earned from interest rate swaps that hedge a portion of our AFS securities portfolio partially offset by the impact of a portion of our corporate bonds portfolio converting from fixed-rate securities to lower floating-rate securities in the fourth quarter of 2023. Yields on our loan and lease portfolio increased by 46 basis points due to yield increases on our floating rate loan portfolio, higher rates on loans originated during the period, and income earned from interest rate swaps that hedge a portion of our residential mortgage portfolio.

The average balances of our interest-bearing liabilities decreased by $178.0 million or 1% in 2024 compared to the prior year due to the termination of $1.2 billion in FHLB advances during the third