Company: BOH
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0001628280-25-036240
Chunk: 233

Company: BANK OF HAWAII CORP
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 2
Chunk 233
---
 52% in the second quarter of 2025 compared to the same period in 2024, primarily due to a decrease in net interest expense coupled with an increase in noninterest income, partially offset with an increase in the provision for credit losses. Net interest expense decreased by $14.6 million or 43%, primarily due to a decrease in funding costs reflecting the current lower rate environment. Noninterest income increased by $2.9 million or 168%, primarily due to a decrease in other income. The provision for credit losses and income taxes in this business segment represent the residual amounts to arrive at the total amount for the Company.

Net loss decreased by $22.5 million or 43% in the first six months of 2025 compared to the same period in 2024, primarily due to a decrease in net interest expense coupled with an increase in noninterest income, partially offset by an increase in noninterest expense and provision for credit losses. Net interest expense decreased by $23.8 million or 53%, primarily due to lower funding costs and an increase in interest income from higher asset yields. Noninterest income increased by $2.2 million 

56

or 43%, primarily due to increases in other income and bank-owned life insurance income. The provision for credit losses and income taxes in this business segment represent the residual amounts to arrive at the total amount for the Company.

Corporate Risk Profile

Credit Risk

We actively manage exposures with deteriorating asset quality to reduce levels of potential loss exposure and closely monitor our reserves and capital to address both anticipated and unforeseen issues. Risk management activities include analysis of portfolio segments and stress tests of certain segments to ensure that reserve and capital levels are appropriate. We perform frequent loan and lease-level risk monitoring and risk rating reviews, which provide opportunities for early interventions to allow for credit exits or restructuring, loan and lease sales, and voluntary workouts and liquidations.

57

Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More

Table 15 presents information on NPAs and accruing loans and leases past due 90 days or more.

Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or MoreTable 15(dollars in thousands)June 30, 2025December 31, 2024ChangeNon-Performing AssetsNon-Accrual Loans and LeasesCommercialCommercial Mortgage$2,566 $2,450 $116 Commercial and Industrial3,744