Company: BOH
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0001628280-25-036240
Chunk: 74

Company: BANK OF HAWAII CORP
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 1
Chunk 74
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 and six months ended 

47

June 30, 2025, respectively, primarily due to the amortization of lower yielding investments being reinvested into new investments at higher current interest rates. This increase was partially offset by lower income earned from interest rate swaps that hedge a portion of our available-for-sale (“AFS”) securities portfolio. Yields on our loan and lease portfolio increased by 4 and 6 basis points during the three and six months ended June 30, 2025, respectively, primarily due to higher rates on home equity lines and residential mortgages originated partially offset by the impact of interest rate swaps that hedge our residential mortgage portfolio.

The average balance of our interest-bearing liabilities for the three and six months ended June 30, 2025 increased by $273.5 million or 2% and $364.5 million or 2%, respectively, compared to the same periods in 2024 primarily due to an increase in savings deposits. As compared to the same periods last year, the cost of our interest-bearing liabilities decreased by 29 and 26 basis points during the three and six months ended June 30, 2025, respectively, primarily due to a decrease in the prevailing interest rate environment, which was driven by 100 basis points of interest rate cuts by the Federal Open Market Committee in late 2024.

Noninterest Income

Table 3 presents the components of noninterest income.

Noninterest IncomeTable 3Three Months Ended June 30,Six Months Ended June 30,(dollars in thousands)20252024Dollar ChangePercent Change20252024Dollar ChangePercent ChangeFees, Exchange, and Other Service Charges$14,383 $13,769 $614 4.5 %$28,820 $27,892 $928 3.3 %Trust and Asset Management12,097 12,223 (126)(1.0)23,838 23,412 426 1.8 Service Charges on Deposit Accounts8,119 7,730 389 5.0 16,378 15,677 701 4.5 Bank-Owned Life Insurance3,714 3,396 318 9.4 7,325 6,752 573 8.5 Annuity and Insurance1,437 1,583 (146)(9.2)2,992 2,629 363 13.8 Mortgage Banking849