Company: BOH
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000046195-25-000037
Chunk: 86

Company: BANK OF HAWAII CORP
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 1
Chunk 86
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$27,891 8.7 %

Total salaries and benefits expense increased by $4.3 million or 7.3% in the third quarter of 2025 compared to the same period last year, primarily due to increases in base salaries and separation expense, partially offset by lower incentive compensation. Total salaries and benefits expense increased by $13.2 million or 7.6% for the first nine months of 2025, compared to the same period last year, primarily due to increases in base salaries, incentive compensation, medical, dental, and life insurance and separation expense.

Data processing fees increased by $0.9 million or 18.9% in the third quarter of 2025 and by $2.1 million or 14.8% for the first nine months of 2025 compared to the same periods last year, primarily due to an increase in data service fees, our online banking platform, and an increase in debit card transactions.

Professional fees decreased by $0.7 million or 14.9% in the third quarter of 2025 and by $1.8 million or 12.4% for the first nine months of 2025 compared to the same periods last year, primarily due to a decrease in consulting and outsourcing costs incurred.

FDIC insurance expense decreased by $5.3 million or 37.8% for the first nine months of 2025 compared to the same period last year, primarily due to a partial recovery of the FDIC special assessment in 2025.

Other expense increased by $2.3 million or 10.2% for the first nine months of 2025 compared to the same period last year, primarily due to an increase in operational losses, telephone charges, and travel expenses.

50

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 September 30,Nine Months Ended September 30,(dollars in thousands)2025202420252024Provision for Income Taxes$14,409 $12,278 $39,388 $35,475 Effective Tax Rates21.3 %23.3 %21.4 %24.2 %

The provision for income taxes was $14.4 million in the third quarter of 2025, an increase of $2.1 million compared to the same period in 2024. The effective tax rate for the