First Hawaiian : Q2 2023 – Earnings Conference Call Presentation

2nd Quarter 2023 Earnings Call

July 28, 2023

FORWARD-LOOKING STATEMENTS

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may", "might", "should", "could", "predict", "potential", "believe", "expect", "continue", "will", "anticipate", "seek", "estimate", "intend", "plan", "projection", "would", "annualized" and "outlook", or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward- looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission ("SEC") filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2022 , and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023.

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Q2 2023 FINANCIAL HIGHLIGHTS1

	Q2 2023	Q1 2023
Net Income ($mm)	$62.4	$66.8
Diluted EPS	$0.49	$0.52
Net Interest Margin	2.91%	3.11%
Efficiency Ratio	58.0%	54.5%
ROA / ROATA2	1.01%	/ 1.05%	1.10%	/ 1.15%
ROE / ROATCE2	10.68%	/ 18.57%	11.78%	/ 20.78%
Tier 1 Leverage Ratio	8.30%	8.26%
CET1 Capital Ratio	12.05%	11.97%
Total Capital ratio	13.17%	13.09%
Dividend3	$0.26	/ share	$0.26	/ share

• Net income $62.4 mm
• Grew total loans and leases $141.6 mm
• Total deposits declined $203.3 mm, 111 bp cost of deposits
• Net interest margin contracted 20 bps
• Excellent credit quality. Recorded $5.0 mm provision expense
• Well capitalized: 12.05% CET1 ratio
• Declared $0.26 / share dividend

1. Comparisons to Q1 2023
2. ROATA and ROATCE are non-GAAP financial measures. A reconciliation of average tangible assets and average tangible stockholders' equity to the comparable GAAP measurements is provided in the appendix of this slide presentation.
3. Declared on July 19, 2023. Payable September 1, 2023 to shareholders of record at close of business on August 21, 2023.

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BALANCE SHEET HIGHLIGHTS

$ in millions		6/30/23		3/31/23
Assets
Cash and Cash	$	558.1	$	865.6
Equivalents1
Investment Securities		2,909.4		3,054.3
- AFS
Investment Securities		4,180.4		4,261.4
- HTM
Loans and Leases		14,362.8	14,221.3
Total Assets		24,511.6	24,884.2
Liabilities
Deposits		$21,078.2	$21,281.5
Short-term borrowings		-		250.0
Long-term borrowings		500.0		500.0
Total Stockholders'		2,359.7		2,329.0
Equity

Comments

• Reduced excess cash, while maintaining ample liquidity

1. Reduced Cash and Cash Equivalents down to $558.1 mm

1. Loan/deposit ratio: 68%

• 1. $8.6 bn of available liquidity at 6/30/23
• Investment portfolio duration remained stable at 5.5 yrs at 6/30/23

1 Includes Cash and due from banks and Interest-bearing deposits in other banks

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LOANS AND LEASES GREW $142 MM, OR 1.0%, IN Q2

Total Loans and Leases

Q2 '23 vs Q1 '23 Net Changes

($ billions)

Leasing Home Equity

Consumer

C&I

Residential

	14.2	14.4
13.3	0.3	0.3
0.2	1.1	1.1
1.0	1.2	1.2
1.2
	2.2
1.9	2.3
4.2	4.3	4.3

($ millions)

CRE

Home Equity

Leases

(-0.0%) (0)

(-0.0%)(1)

(-0.8%) (9)

(-3.5%) (81)

185 (+4.5%)

43 (+3.9%)

5 (+1.6%) Construction

Residential

Consumer

C&I

CRE & Construction

4.7

5.0

5.2

Jun-22

Mar-23

Jun-23

Q2 Highlights

• Construction loan balance reflects the conversion of approximately $130 mm of completed construction loans to CRE
• Dealer flooring balances increased $29 mm

Note: Segments may not sum to total due to rounding

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