Company: BOH
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000046195-25-000037
Chunk: 84

Company: BANK OF HAWAII CORP
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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 an other real estate owned (“OREO”) property, and the recovery of a previously charged-off bank-owned life insurance policy.

On October 1, 2025, we sold the economic interests of our merchant services portfolio. As a result of this transaction, we will recognize a one-time gain of approximately $18 million during the quarter ending December 31, 2025. The noninterest income generated from our merchant services portfolio during the three and nine months ended September 30, 2025 was $3.1 million and $8.7 million, respectively. These amounts were recognized in Fees, Exchange, and Other Service Charges. 

Annuity and insurance decreased by $0.4 million or 25.0% in the third quarter of 2025 compared to the same period last year, primarily due to the onboarding of our new broker-dealer service provider during the quarter.

Mortgage banking decreased by $0.3 million or 23.7% in the third quarter of 2025 compared to the same period last year, primarily due to a decrease in the amount of loans sold to third parties. 

49

Noninterest Expense

Table 4 presents the components of noninterest expense.

Noninterest ExpenseTable 4Three Months Ended September 30,Nine Months Ended September 30,(dollars in thousands)20252024Dollar ChangePercent Change20252024Dollar ChangePercent ChangeSalaries$40,428 $38,993 $1,435 3.7 %$118,314 $115,686 $2,628 2.3 %Incentive Compensation4,280 5,086 (806)(15.8)14,920 11,285 3,635 32.2 Retirement and Other Benefits3,895 3,692 203 5.5 12,850 11,952 898 7.5 Share-Based Compensation3,979 3,364 615 18.3 11,148 10,459 689 6.6 Medical, Dental, and Life Insurance3,908 3,512 396 11.3 12,055 9,935 2,120 21.3 Payroll Taxes2,998 2,839 159 5.6 10,762 10,639 123 1.2 Separation Expense2,091 161 1,930