Company: BOH
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0000950170-25-031193
Chunk: 216

Company: BANK OF HAWAII CORP
Filing Date: 2025-03-04
Form: 10-K
Item: Item 7
Chunk 216
---
itivity 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, as well as higher reinvestment rates on loan and investment securities cashflows. However, lower interest rates would likely cause an initial decline in net interest income as lower rates would lead to lower yields on loans and investment securities, as well as drive higher premium amortization on existing investment securities. Based on our net interest income simulation as of December 31, 2024, NII sensitivity to changes in interest rates for the twelve months subsequent to December 31, 2024, was less sensitive in comparison to the sensitivity profile for the twelve months subsequent to December 31, 2023. Year-over-year NII sensitivity decreased primarily due to an increase in assumed deposit repricing sensitivity. 

To analyze the impact