BANK OF HAWAII CORP
For the period ended Mar 31, 2025. Filed Apr 29, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 29, 2025
BOH$69.64-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-29.
0000950170-24-117887
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-29.
0000950170-25-059477
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 171 previous paragraphs and 168 current paragraphs.
75 unchanged; 62 reworded; 27 added; 32 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 20 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (27)
Current report
Our forward-looking statements are based on numerous assumptions, any of which could prove to be inaccurate, and actual results may differ materially from those projected because of a variety of risks and uncertainties, including, but not limited to: (1) Our business is sensitive to regional business and economic conditions, in particular those of Hawaiʻi, Guam and other Pacific Islands; (2) Our loan portfolio is largely secured by real estate, and a downturn in the real estate market may adversely affect our results of operations; (3) Significant changes to the size, structure, powers and operations of the federal government, changes to U.S. economic policies, and uncertainties regarding the potential for these changes may cause economic disruptions that could, in turn, adversely impact our business, results of operations and financial condition; (4) A sustained period of high inflation could pose a risk to local economies and the financial performance of the Bank; (5) Climate change and the governmental responses to it could have a material adverse impact on the Bank and its customers; (6) Disruptions, instability and failures in the banking industry may negatively impact us; (7) Any reduction in defense spending by the federal government in the state of Hawaiʻi could adversely impact the economy in Hawaiʻi and the Pacific Islands; (8) Changes in interest rates could adversely impact our results of operations and capital; (9) Our allowance for credit losses may prove to be insufficient to absorb losses or appropriately reflect, at any given time, the inherent risk of loss in our loan portfolio; (10) Consumer protection initiatives and court decisions related to the foreclosure process affect our remedies as a creditor; (11) Changes in the capital markets could materially affect the level of assets under management and the demand for our other fee-based services; (12) The Parent’s liquidity is dependent on dividends from the Bank; (13) There can be no assurance that the Parent will continue to declare cash dividends; (14) Fiscal and monetary policy changes may significantly impact our profitability and liquidity; (15) Legislation and regulatory initiatives affecting the financial services industry, including new interpretations, restrictions and requirements, could detrimentally affect the Company’s business; (16) Changes in income tax laws and interpretations, or in accounting standards, could materially affect our financial condition or results of operations; (17) A failure in or breach of our operational systems, information systems, or infrastructure, or those of our third party vendors and other service providers, may result in financial losses, loss of customers, or damage to our reputation; (18) An interruption or breach in security of our information systems or those related to merchants and third party vendors, including as a result of cyber-attacks, could disrupt our business, result in the disclosure or misuse of confidential or propr…
Excerpt shortened here; the source contains the full paragraph.
Current report
Critical Accounting Estimates
Current report
Hawai‘i Economy
Current report
Noninterest income was $44.1 million in the first quarter of 2025, an increase of 4% compared to the same period last year.
Current report
Noninterest expense was $110.5 million in the first quarter of 2025, an increase of 4% compared to the same period last year.
Current report
The effective tax rate for the first quarter of 2025 was 21.67% compared to 24.76% for the same period last year.
Current report
Total assets were $23.9 billion as of March 31, 2025, an increase of 1.2% from December 31, 2024.
Current report
Total deposits were $21.0 billion as of March 31, 2025 and $20.6 billion as of December 31, 2024.
Current report
The change in interest income or expense due to both rate and volume has been allocated between the factors in proportion to the relationship of the absolute dollar amounts of the change in each.
Current report
The average balance of our interest-bearing liabilities for the three months ended March 31, 2025 increased by $322.9 million, or 2%, compared to the same period last year was primarily due to an increase in savings deposits. This increase was partially offset by a private institution exercising their right to call on two repurchase agreements ($50 million in May 2024 and $50 million in February
Current report
2025). As compared to the same period last year, the cost of our interest-bearing liabilities decreased by 23 basis points during the three months ended March 31, 2025 primarily due to a decrease in prevailing interest rate environment, which was driven by 100 basis points of interest rate cuts by the Federal Open Market Committee in late 2024.
Current report
Annuity and insurance income increased by $0.5 million or 49% in the first quarter of 2025 compared to the same period last year primarily due to an increase in sales volume of annuity and insurance products.
Current report
Total salaries and benefits expense increased by $4.7 million or 8% in the first quarter of 2025 compared to the same period last year, primarily due to increases in incentive compensation and medical, dental, and life insurance expense, partially offset by decreases in share-based compensation and separation expense.
Current report
FDIC insurance expense decreased by $2.0 million or 55% in the first quarter of 2025 compared to the same period last year, primarily due to an adjustment of our industry-wide FDIC special assessment.
Current report
Total other expense increased by $1.6 million or 12% in the first quarter of 2025 compared to the same period last year, primarily due to increases in advertising expenses, broker's charges, and an increase in workers compensation claims in the first quarter of 2025 compared to the same period last year.
Current report
The carrying value of our investment securities portfolio was $7.4 billion and $7.3 billion as of March 31, 2025 and December 31, 2024, respectively. The increase is primarily due to the purchase of $241.9 million in available-for-sale investment securities during the three months ended March 31, 2025, of which $105.8 million were floating rate securities. Floating rate securities represented 17.4% of the investment securities portfolio as of March 31, 2025, compared to 16.5% as of December 31, 2024.
Current report
Commercial loans and leases as of March 31, 2025 increased by $72.3 million or 1.2% from December 31, 2024, primarily due to increased loan production in our construction loan portfolio, which increased by $54.8 million or 17.7%. Consumer loans and leases as of March 31, 2025 decreased by $33.0 million or 0.4% from December 31, 2024, primarily due to paydowns in our home equity portfolio and a slowdown in production for our automobile loans.
Current report
Table 6a presents an additional breakdown of the Company’s commercial mortgage portfolio.
Current report
Amount includes unamortized loan origination fees.
Current report
Balances presented as of December 31, 2024 were revised to reflect changes made in our Call Report.
Current report
Securities sold under agreements to repurchase were $50.0 million and $100.0 million as of March 31, 2025 and December 31, 2024, respectively. In February 2025, a private institution exercised its right to call on a repurchase agreement with a balance of $50.0 million, resulting in its termination. As of March 31, 2025, our remaining repurchase agreement was at a fixed interest rate of 3.89%. with a remaining maturity of 4.63 years. Our repurchase agreement was accounted for as a collateralized financing arrangement (i.e., a secured borrowing) and not as a sale and subsequent repurchase of securities.
Current report
Net income increased by $2.0 million or 7% in the first quarter of 2025 compared to the same period last year primarily due to increases in net interest income and noninterest income, partially offset by an increase in noninterest expense. Net interest income increased by $4.1 million or 8% primarily due to increases in loan balances, primarily in commercial mortgages, and allocated interest income due to increases in balances and spreads on interest bearing and savings deposits, partially offset by a reduction in noninterest bearing deposit balances. Noninterest income increased by $1.0 million or 14% primarily due to increases in loan fees and customer derivative program revenue, and a gain on sale of leased equipment, partially offset by a decrease in merchant revenue. Noninterest expense increased by $1.0 million or 5% primarily due to higher allocated administrative and support unit expenses and merchant processing fees, partially offset by lower salaries & benefits.
Current report
Excludes loans that are fully charged-off and placed on non-accrual status during the same period.
Current report
Non-accrual loans as of March 31, 2025 were $16.1 million, a decrease of $0.6 million or 3% from December 31, 2024 primarily due to decreases in commercial and industrial and residential mortgage non-accrual loans. Commercial and industrial non-accrual loans decreased by $1.2 million from December 31, 2024, primarily due to the partial charge-off of a loan.
Current report
For the three months ended March 31, 2025, the provision for credit losses was $3.3 million compared to $2.0 million for the same period last year. The increase in the provision was due to the change in the balances of our unfunded commitments during the three months ended March 31, 2025 compared to the same period in the prior year.
Current report
Compared to December 31, 2024, EVE sensitivity decreased in both rising and falling rate scenarios due to the longer life and higher valuation attributed to deposits. However, in the down 400 bps scenario, EVE sensitivity increased as the overall lower prevailing market rates have made the 0% floor on deposit rates more impactful.
Current report
Shareholders' Equity
Removed paragraphs (32)
Previous report
Critical Accounting Policies
Previous report
Hawai’i Economy
Previous report
Noninterest income was $45.1 million in the third quarter of 2024, a decrease of 10% compared to the same period last year.
Previous report
Noninterest expense was $107.1 million in the third quarter of 2024, an increase of 1% compared to the same period last year.
Previous report
The effective tax rate for the third quarter of 2024 was 23.33% compared with 24.76% compared to the same period last year.
Previous report
Total assets were $23.8 billion as of September 30, 2024, a decrease of 0.3% from December 31, 2023.
Previous report
Total deposits were $21.0 billion as of September 30, 2024 and $21.1 billion as of December 31, 2023.
Previous report
Comprised of other consumer revolving credit, installment, and consumer lease financing.
Previous report
The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
Previous report
Comprised of other consumer revolving credit, installment, and consumer lease financing.
Previous report
The average balance of our interest-bearing liabilities for the three and nine months ended September 30, 2024 decreased by $696.5 million or 4% and $369.1 million or 2%, respectively, compared to the same periods in 2023 due to the termination of $1.2 billion in FHLB advances during the quarter ended September 30, 2023 and the termination of $625.0 million in repurchase agreements ($575.0 million in 2023 and $50.0 million in May 2024). As compared to the same periods last year, the cost of our interest-bearing liabilities increased by 41 and 72 basis points during the three and nine months ended September 30, 2024, respectively, primarily driven by customer migration to higher rate deposit products. The cost of our interest-bearing deposits increased by 57 basis points in the third quarter of 2024 and by 92 basis points in the first nine months of 2024 compared to the same periods in 2023.
Previous report
Fees, exchange, and other service charges increased by $1.1 million or 8% in the third quarter of 2024 and by $1.1 million or 3% for the first nine months of 2024 compared to the same periods in 2023, primarily due to an increase in fee income earned, coupled with an increase in merchant income as a result of higher card related transaction volumes. Fees, exchange, and other service charges are primarily comprised of debit and credit card income, fees from ATMs, merchant service activity, and other loan fees and service charges.
Previous report
Bank-owned life insurance increased by $0.8 million or 29% in the third quarter of 2024 and by $1.8 million or 21% for the first nine months of 2024 compared to the same periods last year. The increase in the third quarter was primarily due to an increase in the yield on the underlying assets coupled with an increase in death benefits. The increase for the first nine months of 2024 was primarily due to an increase in the yield on the underlying assets, partially offset by lower death benefits.
Previous report
Investment securities losses decreased by $5.6 million in the third quarter of 2024 and for the first nine months of 2024 compared to the same periods in 2023 primarily due to $4.6 million net losses on sales of investment securities and higher fees paid to counterparties for Visa Class B share conversion rate expense during the third quarter of 2023.
Previous report
Other noninterest income decreased by $14.8 million or 74% in the third quarter of 2024 and by $17.4 million or 55% for the first nine months of 2024 compared to the same periods last year primarily due to a $14.7 million gain on the extinguishments of repurchase agreements during 2023 coupled with a decrease in customer derivative fees.
Previous report
Total salaries and benefits expense decreased by $6.2 million or 3% during the nine months ended September 30, 2024 compared to the same period last year, primarily due to a decrease in separation expense coupled with a decrease in payroll taxes and retirement and other benefits, partially offset by an increase in incentive compensation.
Previous report
Net occupancy expense increased by $0.5 million or 5% in the third quarter of 2024 and by $1.6 million or 5% for the first nine months of 2024 compared to the same periods in 2023 due to an increase in vacancies of subleased properties and an increase in common area maintenance charges assessed by our lessors.
Previous report
Professional fees increased by $0.9 million or 23% in the third quarter of 2024 and by $0.3 million or 2% for the first nine months of 2024 compared to the same periods in 2023 primarily due to an increase in consulting fees and various outsourced support functions.
Previous report
FDIC insurance expense increased by $4.4 million or 45% for the first nine months of 2024 compared to the same period in 2023 primarily due to an increase in an industry-wide non-recurring FDIC special assessment.
Previous report
Total other expense decreased by $1.6 million or 4% for the first nine months ended September 30, 2024, compared to the same period in 2023 primarily due to lower broker's charges as a result of fewer customer swaps during the current period.
Previous report
The provision for income taxes was $12.3 million in the third quarter of 2024, a decrease of $3.5 million compared to the same period in 2023. The effective tax rate for the third quarter of 2024 was 23.33%, a decrease from 24.76% for the same period in 2023. The lower effective tax rate in the third quarter of 2024 compared to the same period in 2023 was primarily due to an increase in tax-exempt income.
Previous report
The carrying value of our investment securities portfolio was $7.3 billion and $7.4 billion as of September 30, 2024 and December 31, 2023, respectively. The decrease is primarily due to cash flows from the portfolio not being reinvested into securities in the first and second quarters of 2024.
Previous report
Commercial loans and leases as of September 30, 2024 increased by $152.6 million or 3% from December 31, 2023 primarily due to commercial mortgage loans, which increased by $119.6 million or 3% due to increased demand.
Previous report
Consumer loans and leases as of September 30, 2024 decreased by $199.0 million or 2% from December 31, 2023. Residential mortgage loans decreased by $61.5 million or 1% from December 31, 2023 primarily due to fewer loan originations in the higher rate environment. The home equity portfolio decreased by $69.0 million or 3% from December 31, 2023 as a result of paydowns and fewer loan originations. Automobile loans decreased by $50.9 million or 6% from December 31, 2023 due to fewer loan originations as a result of increased competition.
Previous report
Table 12 presents the composition of our securities sold under agreements to repurchase.
Previous report
Securities sold under agreements to repurchase were $100.5 million and $150.5 million as of September 30, 2024 and December 31, 2023, respectively. In May 2024, a private institution exercised their right to call on one repurchase agreement with a balance of $50.0 million, resulting in its termination. As of September 30, 2024, the weighted-average interest rate remained relatively unchanged from December 31, 2023 (1.55% for government entities and 3.80% for private institutions). The weighted-average interest rates as of September 30, 2024 for our outstanding agreements with government entities and private institutions were 1.55% and 3.88%, respectively, with all rates being fixed. The weighted-average maturities as of September 30, 2024 for our repurchase agreements with government entities and private institutions were 0.11 year and 4.13 years, respectively. Each of our repurchase agreements are accounted for as collateralized financing arrangements (i.e., a secured borrowing) and not as sales and subsequent repurchases of securities.
Previous report
Net income decreased by $2.6 million or 3% in the first nine months of 2024 compared to the same period in 2023 primarily due to increases in noninterest expense and the provision for credit losses, partially offset by an increase in noninterest income. The increase in noninterest expense was primarily due to higher allocated FDIC insurance costs and higher allocated administrative and support unit costs. The increase in the provision for credit losses was primarily due to higher net charge-offs in the installment loan and residential loan portfolios. The increase in noninterest income was primarily due to higher trust and asset management fees.
Previous report
Net income decreased by $2.0 million or 6.7% in the third quarter of 2024 compared to the same period in 2023 primarily due to decreases in net interest income and noninterest income, partially offset by a decrease in noninterest expense and a reduction in the tax provision. The decrease in net interest income was primarily due to reductions in deposit balances and an increase in the provision for credit losses. The decrease in net interest income was partially offset by an increase in loan balances. The decrease in noninterest income was primarily due to a decrease in customer derivative program revenue, partially offset by an increase in other loan fees. The decrease in noninterest expense is primarily due to reduced allocated administrative and support unit expenses, lower salaries & benefits, and lower broker charges related to the customer derivative program, partially offset by an increase in operational losses.
Previous report
Net income decreased by $7.2 million or 7.6% in the first nine months of 2024 compared to the same period in 2023 primarily due to decreases in interest income and noninterest income, partially offset by a decrease in noninterest expense, and a reduction in the tax provision. The decrease in net interest income was primarily due to lower deposits spreads and an increase in the provision for credit losses. The decrease in noninterest income is primarily due to reduced customer derivative program revenue. The decrease in noninterest expense is primarily due to reduced allocated administrative and support unit expenses, salaries & benefits, and broker charges related to the customer derivative program.
Previous report
Non-accrual loans as of September 30, 2024 were $17.1 million, an increase of $7.5 million or 77% from December 31, 2023 primarily due to increases in commercial and industrial and residential mortgage non-accrual loans. Commercial and industrial non-accrual loans increased $6.2 million from December 31, 2023, which primarily relates to one borrower. During the three months ended September 30, 2024, we recorded a $1.4 million charge-off in connection with our commercial and industrial non-accrual loans. Residential mortgage non-accrual loans increased $1.3 million or 45% from December 31, 2023. As of September 30, 2024, our residential mortgage non-accrual loans were comprised of 17 loans with a weighted average current loan-to-value ratio of 76.6%.
Previous report
For the three and nine months ended September 30, 2024, the provision for credit losses was $3.0 million and $7.4 million, respectively, compared to $2.0 million and $6.5 million for the same periods last year.
Previous report
EVE sensitivity was largely unchanged, as our addition of pay-fixed swaps continue to offset the sensitivity of fixed-rate assets in up rate shock environments.
Reworded paragraphs (62)
Previous wording
The following MD&A is intended to help the reader understand the Company and its operations and is focused on our fiscal 2024 financial results, including comparisons of year-to-year performance, trends, and updates from the Company’s most recent 10-K filing. Discussion and analysis of our 2023 fiscal year, as well as the year-to-year comparison between fiscal years 2023 and 2022, are included in "Management's Discussion and Analysis of Financial Condition and Results of Operations," Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 29, 2024.
Current wording
The following MD&A is intended to help the reader understand the Company and its operations and is focused on our financial results for the first quarter of 2025, including comparisons of year-to-year performance, trends, and updates from the Company’s most recent 10-K filing. Discussion and analysis of our 2024 fiscal year, as well as the year-to-year comparison between fiscal years 2024 and 2023, are included in Part II, Item 7. “Management's Discussion and Analysis of Financial Condition and Results of Operations,” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 4, 2025.
Previous wording
This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts and may include statements concerning, among other things, the anticipated economic and business environment in our service area and elsewhere, credit quality and other financial and business matters in future periods, our future results of operations and financial position, our business strategy and plans and our objectives and future operations. We also may make forward-looking statements in our other documents filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”). In addition, our senior management may provide forward-looking statements orally to analysts, investors, representatives of the media and others. Our forward-looking statements are based on numerous assumptions, any of which could prove to be inaccurate, and actual results may differ materially from those projected because of a variety of risks and uncertainties, including, but not limited to: (1) general economic conditions either nationally, internationally, or locally may be different than expected, and particularly, any event that negatively impacts the tourism industry in Hawai‘i; (2) the compounding effects of the COVID-19 pandemic, including reduced tourism in Hawai‘i, the duration and scope of government mandates or other limitations of or restrictions on travel, volatility in the international and national economy and credit markets, inflation, worker absenteeism, quarantines or other travel or health-related restrictions, the length and severity of the COVID-19 pandemic, the pace of recovery following the COVID-19 pandemic, and the effect of government, business and individual actions intended to mitigate the effects of the COVID-19 pandemic; (3) changes in market interest rates that may affect credit markets and our ability to maintain our net interest margin; (4) changes in our credit quality or risk profile that may increase or decrease the required level of our reserve for credit losses; (5) the impact of legislative and regulatory initiatives, particularly the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) and Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018; (6) changes to the amount and timing of proposed common stock repurchases; (7) unanticipated changes in the securities markets, public debt markets, and other capital markets in the U.S. and internationally, (8) changes in fiscal and monetary policies of the markets in which we operate; (9) the increased cost of maintaining or the Company’s ability to maintain adequate liquidity and capital, based on the requirements adopted by the Basel Committee on Banking Supervision and U.S. regulators; (10) changes in accounting standards; (11) changes in tax laws or regulations, including Public Law 11…
Excerpt shortened here; the source contains the full paragraph.
Current wording
This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts and may include statements concerning, among other things, the anticipated economic and business environment in our service area and elsewhere, credit quality and other financial and business matters in future periods, our future results of operations and financial position, our business strategy and plans and our objectives and future operations. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We also may make forward-looking statements in our other documents filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”). In addition, our senior management may provide forward-looking statements orally to analysts, investors, representatives of the media and others. Given these risks and uncertainties, you should not place undue reliance on any forward-looking statement as a prediction of our actual results.
Previous wording
Given these risks and uncertainties, you should not place undue reliance on any forward-looking statement as a prediction of our actual results. The risks and uncertainties that could cause actual results to differ materially from our historical experience and our expectations and projections include but are not limited to those described in Item 1A, “Risk Factors,” Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in our most recent Annual Report on Form 10-K and in subsequent SEC filings. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by the federal securities laws.
Current wording
SEC filings. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by the federal securities laws.
Previous wording
Investors and others should note that the Company intends to announce financial and other information to the Company’s investors using the Company’s investor relations website at https://ir.boh.com, social media channels, press releases, SEC filings and public conference calls and webcasts, all for purposes of complying with the Company’s disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, as information is updated, and new information is posted.
Current wording
Investors and others should note that the Company intends to announce financial and other information to the Company’s investors using the Company’s investor relations website at https://ir.boh.com, social media channels, press releases, and public conference calls and webcasts, all for purposes of complying with the Company’s disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, as information is updated, and new information is posted.
Previous wording
Our Unaudited Consolidated Financial Statements were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and follow general practices within the industries in which we operate. The significant accounting policies we follow are presented in Note 1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Application of these principles requires us to make estimates, assumptions, and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Most accounting policies are not considered critical accounting policies by management. Several factors are considered in determining whether or not a policy is critical in the preparation of the Consolidated Financial Statements. Factors include, among other things, whether the policy requires management to make difficult, subjective, and complex judgments about matters that are inherently uncertain and whether it is likely that materially different results would be reported under different conditions or different assumptions. The accounting policies we believe are most critical in preparing our Consolidated Financial Statements are presented in the section titled “Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. There have been no significant changes in the Company’s application of critical accounting policies since December 31, 2023.
Current wording
Our Unaudited Consolidated Financial Statements were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and follow general practices within the industries in which we operate. Application of GAAP requires us to make estimates that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Most accounting estimates are not considered by management to be critical accounting estimates. Critical accounting estimates are those estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. In determining which accounting estimates are critical accounting estimates, we consider, among other things, whether the application of GAAP requires management to make difficult, subjective, and complex judgments about matters that are inherently uncertain and whether it is likely that materially different results would be reported under different conditions or different assumptions. The accounting estimates that we believe are most critical in preparing our Consolidated Financial Statements are presented in the section titled “Critical Accounting Estimates” in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes in the Company’s application of critical accounting estimates since December 31, 2024.
Previous wording
Global economic conditions remain broadly favorable for the local economy. The Maui economy continues its gradual post-wildfire recovery while the visitor industry for the rest of the Hawai’i is expected to operate at a high level. Overall construction will continue at a high level supported by Maui rebuilding, other housing developments, and federal military projects. Hawai‘i’s unemployment rate was 2.9% in September 2024, which was below the U.S. unemployment rate of 4.1%.
Current wording
Currently, Hawai‘i's economy remains on stable footing, but economic growth may be disrupted by changes in trade policies and tariffs, immigration actions, and federal spending cuts. The Maui economy continues its gradual post-wildfire recovery while the visitor industry for the rest of the Hawai‘i is expected to remain stable in the near term. Strong construction activity from both public and private sector projects continues to drive employment and serves as the primary bright spot in the local economy. However, tariffs on materials and potential labor shortages are looming concerns. Hawai‘i’s unemployment rate was 2.9% in March 2025, which was below the U.S. unemployment rate of 4.2%.
Previous wording
For the first nine months of 2024, the median price of single-family home and condominium sales on Oahu increased by 4.8% and 1.0%, respectively, compared to the same period in 2023. The volume of single-family homes sales on Oahu increased 5.8% and condominium sales decreased 5.6% compared to the same period in 2023. Inventory of single-family homes and condominiums on Oahu was 3.4 months and 5.2 months, respectively.
Current wording
For the first three months of 2025, the median price of single-family home and condominium sales on Oahu increased by 7.5% and 1.0%, respectively, compared to the same period in 2024. The volume of single-family homes sales on Oahu decreased 4.0% and condominium sales increased 0.4% compared to the same period in 2024. Inventory of single-family homes and condominiums on Oahu was 3.3 months and 6.2 months, respectively, for the first quarter of 2025.
Previous wording
Net income for the third quarter of 2024 was $40.4 million, a decrease of $7.5 million or 16% compared to the same period in 2023. Diluted earnings per common share was $0.93 for the third quarter of 2024, a decrease of $0.24 or 21% compared to the same period in 2023.
Current wording
Net income for the first quarter of 2025 was $44.0 million, an increase of $7.6 million or 21% compared to the same period in 2024. Diluted earnings per common share was $0.97 for the first quarter of 2025, an increase of $0.10 or 11% compared to the same period in 2024.
Previous wording
The return on average common equity for the third quarter of 2024 was 11.50% compared with 15.38% in the same quarter of 2023.
Current wording
The return on average common equity for the first quarter of 2025 was 11.80% compared with 11.20% in the same quarter of 2024.
Previous wording
Net interest income for the third quarter of 2024 was $117.6 million, a decrease of 3% compared to the same period last year.
Current wording
Net interest income for the first quarter of 2025 was $125.8 million, an increase of 10% compared to the same period last year.
Previous wording
Net interest margin was 2.18% in the third quarter of 2024, a increase of 5 basis points from the same period in 2023.
Current wording
Net interest margin was 2.32% in the first quarter of 2025, an increase of 21 basis points from the same period in 2024.
Previous wording
The provision for credit losses for the third quarter of 2024 and 2023 was $3.0 million and $2.0 million, respectively.
Current wording
The provision for credit losses for the first quarter of 2025 and 2024 was $3.3 million and $2.0 million, respectively.
Previous wording
We maintained a strong balance sheet during the third quarter of 2024, with what we believe are appropriate reserves for credit losses and strong capital.
Current wording
We continued to maintain a strong balance sheet during the first quarter of 2025, with what we believe are appropriate reserves for credit losses and strong capital.
Previous wording
Total loans and leases were $13.9 billion as of September 30, 2024, a decrease of 0.3% from December 31, 2023.
Current wording
Total loans and leases were $14.1 billion as of March 31, 2025, an increase of 0.3% from December 31, 2024.
Previous wording
The allowance for credit losses on loans and leases was $147.3 million as of September 30, 2024, an increase of $0.9 million from December 31, 2023. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.06% at the end of the quarter, up 1 basis point from December 31, 2023.
Current wording
The allowance for credit losses on loans and leases was $147.7 million as of March 31, 2025, a decrease of $0.8 million from December 31, 2024. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.05% at the end of the quarter, down 1 basis point from December 31, 2024.
Previous wording
Net loan and lease charge-offs during the third quarter of 2024 were $3.8 million or 11 basis points annualized of total average loans and leases outstanding. Net loan and lease charge-offs for the third quarter of 2024 were comprised of charge-offs of $5.3 million partially offset by recoveries of $1.5 million. Compared to the same quarter of 2023, net loan and lease charge-offs increased by $1.8 million or 5 basis points annualized on total average loans and leases outstanding.
Current wording
Net loan and lease charge-offs during the first quarter of 2025 were $4.4 million or 13 basis points annualized of total average loans and leases outstanding. Net loan and lease charge-offs for the first quarter of 2025 were comprised of charge-offs of $5.7 million partially offset by recoveries of $1.3 million. Compared to the same quarter of 2024, net loan and lease charge-offs increased by $2.1 million or 6 basis points annualized on total average loans and leases outstanding.
Previous wording
Total non-performing assets ("NPAs") were $19.8 million as of September 30, 2024, up $8.0 million from December 31, 2023. NPAs were 14 basis points of total loans and leases and foreclosed real estate at the end of the quarter, up 6 basis points from December 31, 2023.
Current wording
Total non-performing assets (“NPAs”) were $17.5 million as of March 31, 2025, down $1.8 million from December 31, 2024. NPAs were 12 basis points of total loans and leases and foreclosed real estate at the end of the quarter, down 2 basis points from December 31, 2024.
Previous wording
The investment securities portfolio was $7.3 billion as of September 30, 2024, a decrease of 2% from December 31, 2023. The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.
Current wording
The investment securities portfolio was $7.4 billion as of March 31, 2025, an increase of 2% from December 31, 2024. The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises. Floating rate securities represented 17.4% of the investment securities portfolio as of March 31, 2025, compared to 16.5% as of December 31, 2024.
Previous wording
Total shareholders’ equity was $1.7 billion as of September 30, 2024, an increase of 18% from December 31, 2023 due to the issuance of Series B Preferred Stock in the second quarter of 2024.
Current wording
Total shareholders’ equity was $1.7 billion as of March 31, 2025, an increase of 2% from December 31, 2024.
Previous wording
No shares of common stock were repurchased under the share repurchase program in the third quarter of 2024. Total remaining buyback authority under the share repurchase program was $126.0 million at September 30, 2024.
Current wording
No shares of common stock were repurchased under the share repurchase program in the first quarter of 2025. Total remaining buyback authority under the share repurchase program was $126.0 million at March 31, 2025.
Previous wording
Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report.
Current wording
Due to rounding, the amounts presented in this schedule may not tie to other amounts presented elsewhere in this report.
Previous wording
Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
Current wording
Non-performing loans and leases are included in the respective average loan and lease balances.
Previous wording
Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1.0 million and $2.5 million for the three and nine months ended September 30, 2024, respectively, and $0.4 million and $1.4 million for the three and nine months ended September 30, 2023, respectively.
Current wording
Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21% of $1.5 million and $0.7 million for the three months ended March 31, 2025 and 2024, respectively.
Previous wording
The average balance of our earning assets for the three and nine months ended September 30, 2024 decreased by $952.3 million or 4% and $821.0 million or 4%, respectively, compared to the same periods in 2023. These decreases were due to actions taken to reduce our wholesale and non-core funding in the third quarter of 2023 and second quarter of 2024. As compared to the same periods last year, yields on our investment securities portfolio increased by 7 and 6 basis points during the three and nine months ended September 30, 2024, respectively, primarily due to income earned from interest rate swaps that hedge a portion of our AFS securities portfolio. Yields on our loan and lease portfolio increased by 48 and 55 basis points during the three and nine months ended September 30, 2024, respectively, due to yield increases on our floating rate loan portfolio, higher rates on loans originated during the period, and income earned from interest rate swaps that hedge a portion of our residential mortgage portfolio.
Current wording
The average balance of our earning assets for the three months ended March 31, 2025 increased by $286.3 million, or 1%, compared to the same period last year primarily due to an increase in our commercial mortgages portfolio. Yields on our investment securities portfolio increased by 3 basis points during the three months ended March 31, 2025 compared to the same period last year primarily due to investment securities that we purchased in late 2024 and in the first quarter of 2025. This increase was partially offset by lower income earned from interest rate swaps that hedge a portion of our AFS securities portfolio. Interest income on our loan and lease portfolio increased by $4.5 million during the three months ended March 31, 2025 compared to the same period last year primarily due to an increase in new loan production. This increase was partially offset by lower income earned from interest rate swaps that hedge a portion of our residential mortgage portfolio.
Previous wording
Trust and asset management income increased by $1.4 million or 13% in the third quarter of 2024 and by $2.9 million or 9% for the first nine months of 2024 compared to the same periods in 2023 primarily due to an increase in the asset values of our customers' accounts. Trust and asset management income is comprised of fees earned from the management and administration of trusts and other customer assets. These fees are largely based upon the market value of the assets and the fee rate charged to customers. Total trust assets under management were $13.0 billion and $10.6 billion as of September 30, 2024 and 2023, respectively.
Current wording
Trust and asset management income increased by $0.6 million or 5% in the first quarter of 2025 compared to the same period last year primarily due to an increase in assets under management. Trust and asset management income is comprised of fees earned from the management and administration of trusts and other customer assets. These fees are largely based upon the market value of the assets and the fee rate charged to customers. Total trust assets under management were $12.0 billion and $11.9 billion as of March 31, 2025 and March 31, 2024, respectively.
Previous wording
The provision for income taxes was $35.5 million in the first nine months of 2024, a decrease of $11.2 million compared to the same period in 2023. The effective tax rate for the first nine months of 2024 was 24.25%, a decrease from 24.91% for the same period in 2023. The lower effective tax rate for the first nine months of 2024 compared to the same period in 2023 was due to an increase in tax-exempt income and an increase in benefits from low-income housing investments.
Current wording
The provision for income taxes was $12.2 million in the first quarter of 2025, an increase of $0.2 million compared to the same period last year. The effective tax rate for the first quarter of 2025 was 21.67%, a decrease from 24.76% for the same period last year. The lower effective tax rate in the first quarter of 2025 compared to the same period last year was primarily due to an increase in tax-exempt income, an increase in net tax benefits from low-income housing investments, and a decrease in tax expense from discrete items.
Previous wording
We continually evaluate our investment securities portfolio in conjunction with our response to established asset/liability management objectives, changing market conditions that could affect profitability, and the level of interest rate risk to which we are exposed to. These evaluations may cause us to change the level of funds we deploy into investment securities, change the composition of our investment securities portfolio, and change the proportion of investments made into the AFS and HTM investment categories.
Current wording
We continually evaluate our investment securities portfolio in conjunction with our response to established asset/liability management objectives, changing market conditions that could affect profitability, and the level of interest rate risk to which we are exposed. These evaluations may cause us to change the level of funds we deploy into investment securities, change the composition of our investment securities portfolio, adjust hedge positions, and change the proportion of investments made into the AFS and HTM investment categories.
Previous wording
Net unrealized losses in our investment securities portfolio were $0.9 billion as of September 30, 2024 and $1.0 billion as of December 31, 2023. See Note 3 to the unaudited Consolidated Financial Statements for more information.
Current wording
Net unrealized losses in our investment securities portfolio were $0.9 billion as of March 31, 2025 and $1.1 billion as of December 31, 2024. See Note 2 Investment Securitiesto the unaudited Consolidated Financial Statements for more information.
Previous wording
Total loans and leases as of September 30, 2024 decreased by $46.4 million from December 31, 2023 primarily due to reductions in our consumer loans, partially offset by growth in our commercial loan portfolio.
Current wording
Total loans and leases as of March 31, 2025 increased by $39.3 million from December 31, 2024, primarily due to growth in our commercial loans, partially offset by reductions in our consumer loan portfolio.
Previous wording
Our commercial and consumer lending activities are concentrated primarily in Hawai‘i. Our commercial loan and lease portfolio to borrowers based on the U.S. Mainland includes participation in shared national credits for customers whose operations and assets extend beyond Hawai‘i.
Current wording
Our commercial and consumer lending activities are concentrated primarily in Hawai‘i and the West Pacific. Our commercial loan and lease portfolio to borrowers based on the U.S. Mainland includes participation in shared national credits for customers whose operations and assets extend beyond Hawai‘i.
Previous wording
Low-income housing and other equity investments increased by $12.4 million due to increased funding of existing projects. Deferred tax assets and tax receivable decreased by $19.7 million due to temporary differences between financial reporting and income tax basis of unrealized losses on investment securities and decrease in federal income tax receivable. Derivative financial instruments decreased by $20.7 million due to decreasing fair value of our interest rate swaps impacted by prevailing interest rates, partially offset by the termination of certain fair value hedges. Prepaid expenses increased by $4.1 million due to an increase in prepaid insurance and other prepaid expenses. Deferred compensation plan assets increased by $6.5 million primarily due to contributions from plan participants and net appreciation in plan assets during the period.
Current wording
Derivative financial instruments decreased by $35.8 million due to decrease in yield curves from December 2024 to March 2025 decreasing the valuation of customer swaps and fair value hedges. Deferred tax assets and tax receivable decreased by $6.7 million due to temporary differences between financial reporting and income tax basis of unrealized losses on investment securities.
Previous wording
Total deposits were $21.0 billion as of September 30, 2024, a decrease of $76.7 million or 0.4% from December 31, 2023. Consumer deposits increased by $20.7 million due to an increase of $231.1 million in time deposits, partially offset by a decrease of $210.4 million in core deposits, which include all deposits excluding time deposits. Commercial deposits decreased by $245.0 million primarily from decreases of $178.7 million in core deposits and $66.3 million in time deposits. Public and other deposits increased by $147.6 million due to an increase of $201.2 million in core deposits, partially offset by a decrease of $53.6 million in time deposits.
Current wording
Total deposits were $21.0 billion as of March 31, 2025, an increase of $375.2 million or 1.8% from December 31, 2024. Consumer deposits increased by $124.9 million due to an increase of $167.2 million in core deposits, defined as all deposits exclusive of time deposits, partially offset by a decrease of $42.3 million in time deposits. Commercial deposits increased by $112.2 million primarily from increases of $68.3 million in core deposits and $43.9 million in time deposits. Public and other deposits increased by $138.1 million due to an increase of $160.4 million in core deposits, partially offset by a decrease of $22.3 million in time deposits.
Previous wording
The increase in Money Market was primarily due to an increase in commercial deposits of $372.9 million partially offset by $35.6 million decrease in consumer deposits. The increase in Regular Savings was primarily due to increases in consumer deposits of $139.1 million and $8.6 million in public deposits, partially offset by a decrease of $11.3 million in commercial deposits.
Current wording
The increase in Money Market was primarily due to an increase in commercial deposits of $28.8 million partially offset by $3.1 million decrease in consumer deposits. The increase in Regular Savings was primarily due to increases in public deposits of $182.8 million, $124.0 million in consumer deposits and $2.7 million in commercial deposits.
Previous wording
Estimated uninsured deposits is calculated pursuant to regulatory guidance and reported in our Call Report, and includes deposits collateralized by government-backed securities and intercompany deposits of wholly-owned subsidiaries. The table below presents a reconciliation of our estimated uninsured deposits as reported in our Call Report to our adjusted uninsured deposits. We believe the adjusted uninsured deposits provides useful information about our deposits at risk.
Current wording
Estimated uninsured deposits are calculated pursuant to regulatory guidance and reported in our Call Report and include deposits collateralized by government-backed securities and intercompany deposits of wholly-owned subsidiaries. Table 12 presents a reconciliation of our estimated uninsured deposits as reported in our Call Report to our adjusted uninsured deposits. We believe the adjusted uninsured deposits reconciliation provides useful information about our deposits at risk.
Previous wording
Table 14 summarizes net income from our business segments. Additional information about segment performance is presented in Note 10 to the unaudited Consolidated Financial Statements.
Current wording
Table 14 summarizes net income from our business segments. Additional information about segment performance is presented in Note 9 Business Segments to the unaudited Consolidated Financial Statements.
Previous wording
Net income decreased by $1.6 million or 5% in the third quarter of 2024 compared to the same period in 2023 primarily due to increases in noninterest expense and the provision for credit losses, as well as a decrease in net interest income, partially offset by an increase in noninterest income. The increase in noninterest expense was primarily due to higher allocated administrative and support unit costs. The increase in the provision for credit losses was primarily due to higher net charge-offs in the installment loan and auto loan portfolios. The decrease in net interest income was primarily due to lower deposit spreads on higher deposit balances, partially offset by higher loan spreads. The increase in noninterest income was primarily due to higher trust and asset management fees.
Current wording
Net income decreased by $3.4 million or 10% in the first quarter of 2025 compared to the same period last year primarily due to an increase in noninterest expense, a decrease in net interest income, and an increase in the provision for credit losses. This was partially offset by an increase in noninterest income. Noninterest expense decreased by $3.7 million or 4% primarily due to higher allocated administrative and support unit costs. Net interest income decreased by $1.4 million or 1% primarily due to lower deposit spreads on higher deposit balances, as well as lower loan balances. The provision for credit losses increased by $1 million or 44% primarily due to higher net charge-offs in the auto loan and installment loan portfolios. Noninterest income increased by $1.5 million or 5% primarily due to higher trust and asset management income, annuity and insurance income, and monthly service fees.
Previous wording
Net income decreased by $20.2 million or 37% in the first nine months of 2024 compared to the same period last year primarily due to lower net interest income and noninterest income partially offset by lower noninterest expense. The decrease in net interest income was primarily due to higher funding costs offset by an increase in interest income from higher asset yields. The lower noninterest income was primarily due to gains on extinguishments of repurchase agreements in 2023. The lower noninterest expense was primarily due to lower salaries and benefits from overall lower headcount. The provision for income taxes in this business segment represents the residual amount to arrive at the total tax expense for the Company.
Current wording
Net loss decreased by $8.9 million or 34% in the first quarter of 2025 compared to the same period last year primarily due to higher net interest income, partially offset by lower noninterest income. The net interest income increased by $9.2 million or 27% primarily due to a decrease in funding costs reflecting lower rate environment. Noninterest income decreased by $0.7 million or 19% primarily due to a decrease in other income. The provision for income taxes in this business segment represents the residual amount to arrive at the total tax expense for the Company.
Previous wording
NPAs consist of non-accrual loans and leases and foreclosed real estate. Changes in the level of non-accrual loans and leases typically represent additions for loans and leases that reach a specified past due status, offset by reductions for loans and leases that are charged-off, written down, paid down, sold, transferred to foreclosed real estate, or are no longer classified as non-accrual because they have returned to accrual status.
Current wording
NPAs consist of non-accrual loans and leases and foreclosed real estate. Changes in the level of non-accrual loans and leases typically are caused by loans and leases that reach a specified past due status, offset by reductions for loans and leases that are charged-off, written down, paid down, sold, transferred to foreclosed real estate, or are no longer classified as non-accrual because they have returned to accrual status.
Previous wording
Foreclosed real estate represents property acquired as the result of borrower defaults on loans. Foreclosed real estate is recorded at fair value, less estimated selling costs, at the time of foreclosure. On an ongoing basis, properties are appraised as required by market conditions and applicable regulations. Foreclosed real estate was $2.7 million as of September 30, 2024 compared to $2.1 million as of December 31, 2023.
Current wording
Foreclosed real estate represents property acquired as the result of borrower defaults on loans. Foreclosed real estate is recorded at fair value, less estimated selling costs, at the time of foreclosure. On an ongoing basis, properties are appraised as required by market conditions and applicable regulations. Foreclosed real estate was $1.4 million as of March 31, 2025 compared to $2.7 million as of December 31, 2024. The decrease was due to the sale of two foreclosed properties during the three months ended March 31, 2025.
Previous wording
Loans and leases in this category are 90 days or more past due, as to principal or interest, and are still accruing interest because they are well secured and in the process of collection. Loans and leases past due 90 days or more and still accruing interest were $7.5 million as of September 30, 2024, a $0.9 million or 14% increase from December 31, 2023. The increase was primarily in residential mortgage and home equity.
Current wording
Loans and leases past due 90 days or more and still accruing interest were $7.6 million as of March 31, 2025, a $0.7 million or 9% decrease from December 31, 2024. The decrease was primarily in our home equity portfolio. This category includes loans and leases that are well-secured and in the process of collection, as well as loans and leases that have not reached the specified past due status to be placed on non-accrual.
Showing the first 40 of 62 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
The risks and uncertainties that could cause actual results to differ materially from our historical experience and our expectations and projections include but are not limited to those described in Item 1A. “Risk Factors,” Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in our most recent Annual Report on Form 10-K and in subsequent
Current report — wording carried from elsewhere
We utilize net interest income simulations to analyze short-term income sensitivities to changes in interest rates. Table 17a presents as of March 31, 2025 and December 31, 2024, an estimate of the change in net interest income over the next twelve months that would result from an immediate change in interest rates, moving in a parallel fashion over the entire yield curve, relative to the measured base case scenario. The base case scenario assumes the consolidated statements of condition and interest rates are generally unchanged.
Current report — wording carried from elsewhere
Based on our net interest income simulation as of March 31, 2025, net interest income is expected to increase as interest rates rise. Rising interest rates would drive higher rates on floating rate loans, interest rate swaps 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, swaps and investment securities, as well as drive higher premium amortization on existing investment securities. Based on our net interest income simulation as of March 31, 2025, NII sensitivity to changes in interest rates for the twelve months subsequent to March 31, 2025 increased slightly to both rising and falling rates compared to the sensitivity profile for December 31, 2024. NII sensitivity increased due primarily to the increase in volume of floating rate assets, partially offset by an increase in interest rate sensitive deposits.
Current report — wording carried from elsewhere
No shares of common stock were repurchased under the share repurchase program in the first quarter of 2025. From the beginning of our share repurchase program in July 2001 through March 31, 2025, we repurchased a total of 58.2 million shares of our common stock and returned a total of $2.4 billion to our shareholders at an average cost of $41.24 per share. Remaining buyback authority under our share repurchase program was $126.0 million as of March 31, 2025. The actual amount and timing of future share repurchases, if any, will depend on market and economic conditions, regulatory rules, applicable SEC rules, and various other factors.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Net income decreased by $3.9 million in the third quarter of 2024 compared to the same period last year primarily due to lower noninterest income. The decrease in noninterest income was primarily due to gains on extinguishments of repurchase agreements in the third quarter of 2023. The provision for income taxes in this business segment represents the residual amount to arrive at the total tax expense for the Company.
Previous report — wording carried elsewhere
Remaining buyback authority under our share repurchase program was $126.0 million as of September 30, 2024. The actual amount and timing of future share repurchases, if any, will depend on market and economic conditions, regulatory rules, applicable SEC rules, and various other factors.